Associated Builders and Contractors of CT

About CT ABC CT ABC is a Membership Association representing merit shop contractors, who make up over 80% of the construction industry in Connecticut Founded in 1976 CT ABC believes that all contracts should be awarded to the lowest, qualified and responsible bidder regardless of their union affiliation Our 200 members include general contractors, construction managers, subcontractors, material suppliers, as well as professional associate members

Stakeholder Perspective on Working Group Provide consistency and certainty to contractors who work on state projects Address need for a Statute of Limitation on state jobs Remove barriers that prevent people from entering the industry, and receiving best in class training Create level playing field for all qualified contractors and their employees Elimination of burdensome regulations, that may discourage qualified contractors from bidding state work, and have unintended consequences that hurt the industry

Consistency, Certainty, and Flexibility Connecticut’s construction industry is slowly coming back, but like other sectors it is a fragile recovery Many experienced state contractors are being deterred from state work because of the many layers of laws and requirements that are mandated on public projects State should be concerned that if this trend continues they will not get the most qualified contractors to provide the best product for the end users

Consistency, Certainty, and Flexibility Concerns include: -Increased costs for compliance -Burdensome regulations -No statute of limitations -Fear of rules constantly changing -Laws being created to fix problems that don’t exist State must remove some of these undue burdens on contractors, and work to create the certainty and consistency that contractors need

Statute of Limitations The legislature needs to create a reasonable statute of limitations to protect industry professionals who work on state projects State of CT vs. Lombardo Bros. Mason Contractors, et. al ruling has clarified that the state may bring claims against contractors for an infinite time period This places an extreme liability on all those who perform state work, and we are already hearing examples of our members turning down opportunities to bid on jobs because of this law

Barriers of Entry for a Skilled Workforce As construction in Connecticut improves, the industry need for skilled craftspeople will increase A few barriers that prevent this are: - Ratio - Transportation challenges. State does not recognize company vehicles as a fringe benefit – lack of transportation is the main barrier for inner city workers entering industry Training for the next generation of construction workers is crucial – CT ABC is committed to doing its part to achieve this goal

Providing a Highly Skilled Workforce (cont.) Founded the Construction Education Center (CEC) in 2007 CEC to date has trained over 2,000 apprentices, as well as offering hundreds of classes in safety training, project management, OSHA, etc. The CEC provides these educational opportunities to ALL merit shop contractors, not just members Also founded the Construction Pro Rodeo, a two day event designed to encourage high school seniors to enter construction as a career

Creating a Level Playing Field Another way to discourage participation on state projects are laws such as Project Labor Agreements, Responsible Contractor Ordinances, Responsible Employer Ordinances, etc. Sold as solutions to ensuring a better quality project these laws are a redundant to existing state law; provide no guarantees for a safer or more cost efficient project; and discriminate against certain contractors because of their decision to not be signatory to the union

Creating a Level Playing Field (cont.) Under these laws non-union contractors are forced to hire workers from the union hall instead of using their own employees, forced to pay into the union benefit funds, and meet other requirements while working on the job As a result non-union contractors are shut out of these jobs, decreasing the competition, and unfairly discriminating against 80% of the industry

Guarding Against Unintended Consequences Committee recommendations or Legislation is mostly done with the best intentions in mind It is important that if this committee decides to implement any new requirements that they avoid unintended consequences that have a negative impact on the industry as a whole, and the state’s ability to deliver the highest quality construction projects to CT residents

Guarding Against Unintended Consequences (cont.) Examples of potential unintended consequences: -Retribution from other states on proposed state/local hiring requirements -Exclusion of open-shop contractors due to apprenticeship requirements (State currently recognizes no open-shop programs for Operators and Laborers) -Reporting requirements that are designed for stronger enforcement of rules, but actually increase cost to the state, cost to contractor and slow down the project

Thoughts for Recommendations The group should always ask the following as they consider their recommendations for the legislature: -Is this being done with the best interest of the ENTIRE industry in mind? -How will this impact the cost of state projects? -What are the unintended consequences? -How will this improve the ability of contractors to bid and work on state projects?

Thoughts for Recommendations (Cont.) Are we trying to fix a problem that doesn’t exist? Will this improve or harm the overall ability to do business in the state of Connecticut? Contact: Chris Syrek Vice President – CT ABC