USGBC, Green Sports Alliance to Promote Sustainable Sporting Venues

With millions of sports fans visiting LEED-certified green sports venues every year, the U.S. Green Building Council (USGBC) is proud to announce a collaboration with the Green Sports Alliance, a prominent nonprofit organization supporting the development and promotion of green building initiatives in professional and collegiate sports.

USGBC will support the Alliance to accelerate the green sports movement by exploring LEED certification of sports stadiums across the country. Currently, 25 professional sports venues are LEED-certified, including Nationals Park, American Airlines Arena and Soldier Field to name a few. The partnership will also explore additional engagement opportunities such as USGBC’s Green Apple Day of Service, a day for people across the globe to participate in green school service projects.


“Sports fans stepping into LEED-certified arenas, stadiums, ballparks and more experience the benefits of green building firsthand with water conservation, energy efficiency and responsible waste management,” said Rhiannon Jacobsen, director of strategic accounts, USGBC. “It was a natural fit for USGBC to partner with the Green Sports Alliance, which is dedicated to making professional sports healthier and more sustainable.”

“The Green Sports Alliance consists of over 180 professional and collegiate sports teams and venues, all looking to enhance their operations and environmental performance,” said Martin Tull, executive director, Green Sports Alliance. “Partnering with the USGBC will help us provide valuable resources and guidance to our members as they work to employ and promote green building initiatives at their respective venues.”


USGBC and the Alliance have jointly developed a toolkit focused on advancing green schools through sports, which encourages sports organizations to engage their communities in environmental stewardship through local projects.

The Alliance highlights USGBC initiatives at professional and collegiate sports venues through member resources including webinars, toolkits, best practice sharing and social media events.

USGBC first collaborated with the Alliance last August when the Seattle Mariners, Seahawks, Sounders and Storm collaborated on a school garden project for the inaugural Green Apple Day of Service. 2013 Green Apple Day of Service projects are currently being planned by sports teams in cities such as San Francisco, Kansas City, Seattle and Philadelphia, host of USGBC’s 2013 Greenbuild Conference and Expo in November, where the Alliance will have a presence in the Center for Green Schools booth.  


To continue engaging the sports industry around its programs, USGBC will be joining the Green Sports Alliance at the 2013 Green Sports Alliance Summit in NYC, August 26-28.

AGC Urges Administration to Reconsider Unnecessary Employment Rules for Federal Contractors

The Obama administration should reconsider its proposal to impose oppressive new regulations governing the employment of veterans and people with disabilities on federal contractors, officials with the Associated General Contractors of America argued during a meeting with the administration. Association officials said federal employment and compliance enforcement data indicate there is no justification for the costly new rules.

“As the data makes clear, veterans and the disabled are already extremely well represented in the construction industry,” said Stephen E. Sandherr, the association’s chief executive officer, following a meeting today with the Office of Information and Regulatory Affairs (OIRA). “These new rules offer a very costly fix for a problem that, according to the government’s own data, doesn’t appear to exist.”

The proposed new rules allegedly address “higher unemployment” rates among veterans and the disabled community, according to the Office of Federal Contract Compliance Programs (OFCCP). Yet federal employment data shows that the annual average unemployment rate for all veterans in 2012 was 7 percent, lower than the 7.9 percent rate for nonveterans, while a higher share of employed veterans than nonveterans work in the construction industry. In addition, people with disabilities are as likely to be employed by construction firms as people without disabilities according to the Bureau of Labor Statistics.

Association officials also noted that an analysis conducted by the Center for Corporate Equality of OFCCP’s own enforcement data found almost no indication that veterans or the disabled are being discriminated against by federal contractors. The report, which was based on an exhaustive study of federal compliance reviews and complaint investigations, found that only 0.02 percent of all federal contractors could be seriously suspected of having discriminated against veterans or people with disabilities.

Given the lack of data justifying the need for the rules, and the fact that they will cost significantly more than OFCCP officials suggest, Sandherr urged the Obama administration to reconsider finalizing the new employment mandates for federal contractors. He said the administration should instead re-open the record to determine whether the rules are needed.

“The fact federal officials are sitting down and listening to groups like ours is a hopeful sign the administration is ready to ask tough questions about whether there is any justification to move forward with these new mandates,” Sandherr said. “So far, all available federal data makes it clear that there is simply no need for these new regulations.”

U.S. Rental Revenue Outpaces Economy

The equipment rental industry in the United States continues to outpace gross domestic product (GDP) in the country by four times in 2013, according to American Rental Association’s (ARA) latest forecast from the ARA Rental Market Monitor. Revenues will reach $33.5 billion in revenue, representing a 7 percent increase over 2012 with revenue growth reaching 7.8 percent in the fourth quarter according to the latest quarterly forecast updated July 29, 2013. Economic data and analysis for ARA’s Rental Market Monitor is compiled by IHS Global Insight, an economic forecasting firm based in Lexington, Mass.

In the United States, the construction market and consumer spending continue to be the most important drivers of growth of the equipment rental market in 2013. “Though real nonresidential construction is forecast to decline 0.8 percent, real residential construction is expected to grow 8.2 percent, yielding an overall real construction growth rate of 2.6 percent in 2013. Real consumer spending is projected to increase 1.9 percent in 2013, with spending on recreational services forecast to grow 1.3 percent. These improvements will translate into increased revenue in all segments of the equipment rental market,” according to the U.S. economic analysis from the ARA Rental Market Monitor.

The construction and industrial equipment segment is forecast to grow 8.1 percent in 2013, while general tool segment revenue is expected to increase 5.4 percent over 2012. Party and event rental revenue is forecast to increase 2.4 percent. The second quarter of 2013 is projected to be the slowest for the overall rental equipment market compared with 2012, but quarter-on-quarter growth is forecast to pick up in the final two quarters of the year.

The forecast for 2014 is more positive, calling for 9.2 percent growth in U.S. equipment rental revenue followed by 12.9 percent growth in 2015. By the end of 2017, equipment rental revenue in the United States is expected to exceed $46.5 billion.

In Canada, the equipment rental industry is forecast to generate nearly $4.6 billion in revenue in 2013, a 2.8 percent increase, and to continue growing throughout the forecast to reach nearly $5.4 billion in rental revenue in 2017.

“As we look toward the third quarter of the year, we continue to see significant growth opportunity in succeeding future years for equipment rental. The dynamics of the economy drive this industry, along with individual management initiative. Rental operators adeptly balance these factors to build their rental revenue volume. Rental penetration continues its growth pattern, as the customer base relies on rental as a preferred business option,” says Christine Wehrman, ARA’s executive VP and CEO.

“The U.S. economy slowed more than expected in the first half of the year, but equipment rental demand has remained strong. We have lowered our growth expectations for 2013 modestly to reflect this, but rental growth will still handily outperform the overall economy. The path ahead still looks promising with employment growth continuing and housing data coming in strong, which implies an improving commercial construction market to follow. Industrial markets, especially those tied to energy exploration and production, also should see growth,” says Scott Hazelton, a senior partner with IHS Global insight, which compiles data and analyses for the ARA Rental Market Monitor.

Masons: Construction Industry Institute Endorses CM Certification

The Construction Industry Institute (CII) of the University of Texas, a consortium of leading owners; engineering and construction contractors; and major suppliers dedicated to improving delivery of capital projects and programs, has endorsed the Certified Construction Manager designation as "a value-adding credential for those in responsible charge positions of major phases of capital projects."

In making this endorsement, CII's Professional Development and Executive Committees also urged CII member companies to "seriously consider the benefits that the CCM credential can bring to the execution of their individual capital projects."

CII's membership of more than 130 organizations includes many of the largest and most innovative capital program owners in the United States, along with major general contractors, engineering services providers, major suppliers, and leading academic institutions. CII emphasizes rigorous research into critical trends and topics affecting the construction industry, together with performance assessment and promotion of a portfolio of tested, evidence-based construction Best Practices.

The CM certification program is accredited by the American National Standards Institute based on the International Organization for Standardization's ISO 17024 standard. It is administered by the Construction Manager Certification Institute, which recently announced the enrollment of the 2,000th Certified Construction Manager.

CII's endorsement of CM certification, announced on the eve of its 30th Annual Conference in Orlando, Fla., results from a process that has extended for more than two years. During this time, a large joint committee of representatives from CII and the Construction Management Association of America made a detailed comparison of CII Best Practices and CMAA's Construction Management Standards of Practice. The two organizations then collaborated on a strategy for integrating the Best Practices into the body of knowledge on which the CCM certification is based. This included creating a new pool of questions for the CCM examination.

As a result, the CII leadership concluded that "the examination questions robustly represent CII Best Practices content."

CII and CMAA launched an alliance in 2010 under the theme, "Best Practices - Best Practitioners." Institute Chair Glenn Gilkey, senior VP at Fluor Corp., notes that both parts of this formulation are equally important.

"CII's Best Practices are evidence-based and proven effective," Gilkey explains. "Incorporating them into your projects will improve your results. But it is critical that the professional practitioners managing programs and projects be thoroughly familiar with Best Practices and committed to implementing them. We believe this endorsement is a significant milestone. It will help CII achieve our purpose of measurably improving the delivery of capital facilities."

Bruce D'Agostino, CAE, FCMAA, president and CEO of CMAA, praised the CII decision as the result of commitment and hard work by more than 24 volunteers. "Both CII and CMAA recruited for this effort the most experienced and far-sighted individuals among their members, and this group worked conscientiously through a very complex process to achieve the best possible outcome."

Federal Construction: Bidding on Prevailing Wage Jobs

By John G. Allen

Ever lost a bid on a government job by just a few dollars? Competition for government jobs and maintaining compliance with government regulations are tougher than ever. Masonry companies that work on government jobs may be missing an opportunity to reduce payroll costs on those projects, while providing valuable benefits such as retirement plans and health insurance for their workers.

Even companies that do a small percentage of projects covered by prevailing wage laws can realize significant savings by using fringe dollars in the way the law intended. With the deadline for ACA (healthcare reform) compliance approaching, there’s never been a better time to consider a prevailing wage benefit plan if you work on government contracts.

Federal construction contracts in excess of $2,000 are subject to the Davis-Bacon Act, which requires payment of locally “prevailing wages,” including the “anticipated cost of prevailing benefits.” Generally, this is expressed as a per-hour wage and per-hour cash equivalent value of benefits, and often is based on a union scale. Prevailing wages are set by the DOL and are included in the bid specifications of covered contracts. Many states and the District of Columbia have their own prevailing wage laws, often referred to as “little Davis-Bacon Acts.”

Many contractors pay the fringe benefit portion of the prevailing wage as additional cash wages, believing it’s the easiest way to comply with the law. But allocating the fringe amount to a bona fide benefit plan or plans results in significant cost savings, and can dramatically improve a company’s bottom line. Benefits that might be included in a bona fide benefit plan are retirement, medical, dental, vision and life insurance plans.

The reason contractors save money by offering a bona fide benefit plan is that, when the fringe portion of the prevailing wage is used to provide benefits for hourly workers, this amount is not subject to payroll costs such as FICA, FUTA and SUTA, general liability and, in most states, workers compensation insurance.

Although there are variances in rates, conservatively these taxes represent an additional 25 cents on each dollar paid as cash wages. Here’s an example of how much can be saved by removing these dollars from payroll:

Sample Calculation

Say the company has 15 employees doing prevailing wage work. These employees work about 1,000 hours each per year. The fringe amount above the base rate is $10/hour, and the average approximate additional payroll cost, when paying fringe dollars as cash wages, is 25 percent.

15 employees X 1,000 hours = 15,000 total hours
15,000 hours X $10 = $150,000 in additional payroll
$150,000 X 25% = $37,500 company savings
Savings realized over five years: $187,500
Savings realized over 10 years: $375,000

Contractors searching for ways to cut costs and improve their chances of winning bids on government jobs should consider implementing a bona fide benefits plan. It provides valuable benefits for hourly workers by providing them with a way to save for retirement, as well as the protection offered by medical, vision, dental and life insurance. And, regardless of economic conditions, it makes good business sense to reduce costs and sharpen your competitive edge when bidding on public works projects.

With ACA deadlines quickly approaching, it makes more sense than ever for companies working on government contracts to use the fringe to provide major medical coverage for their employees. For prevailing wage contractors, the funds to purchase coverage for employees are right there, included in the fringe. Starting in 2015, employers with more than 50 full-time employees will be required to provide health insurance for their workers. Companies that fail to comply will face penalties.

Even prevailing wage contractors with fewer than 50 employees should consider using the fringe to provide health insurance for their hourly workers, because the savings on payroll burden can be passed on as leaner, more competitive bids. That results in increased chances of winning contracts. Choosing to offer health insurance also makes sense from an employee-relations standpoint in terms of being able to attract and retain talented workers.

Plus, providing benefits is the right thing to do. Coverage provided with fringe dollars is paid with pre-tax money, and employees who are not covered at work must be underwritten on their own and pay potentially higher rates with their after-tax dollars. You have fringe dollars specifically earmarked to provide benefits, and significant payroll and insurance costs savings when you do.

John G. Allen, CRPS, is a member of the MCAA and a regional VP for Fringe Benefit Group, which has been helping government contractors design and administer fringe benefit programs since 1983. He can be reached at 800-635-6912 or jallen@fbg.com.