According to a new report from the Associated General Contractors of America, construction employment expanded in 29 states during September and October of 2011. During their analysis of state employment data, released recently by the Labor Department, the AGCA found that while construction employment in 29 states increased, fewer people are working in construction compared to last year’s 39 states.

After the data was released Ken Simonson, Chief Economist with the Association, stated that construction employment still remains volatile while the construction industry remains fragile. While he assured that the construction industry was no longer “in free-fall” Simonson said the construction industry had a long way to go as improvements varied from state to state and project to project.

The data collected showed that Arizona (4.4 percent, 5,000 jobs) experienced the largest one-month seasonally adjusted percentage increase and Texas (2.3 percent, 8,800 jobs) the largest one-month total increase in construction employment between September and October. Other states adding large numbers of construction jobs during October included Illinois (1.5 percent, 3,000 jobs); Washington (2.1 percent, 3,000 jobs); South Carolina (3.2 percent, 2,500 jobs); and Colorado (1.6 percent, 1,800 jobs).

Simonson noted 20 states plus the District of Columbia lost construction jobs during the past month, while construction employment remained unchanged in Rhode Island. Minnesota (-2.7 percent, -2,300 jobs) lost the highest percent of construction jobs for the month while Florida lost the most jobs (-2.4 percent, -8,600 jobs). Among other states losing construction jobs between September and October were Pennsylvania (-1.0 percent, -2,200 jobs); Maryland (-1.3 percent, -1,900 jobs); Georgia (-1.2 percent, -1,800 jobs); and Massachusetts (-1.4 percent, -1,500 jobs).

Eleven states and D.C. added construction jobs for the year, Simonson added. The largest year-over-year percentage increase was in Kansas, where construction employment rose 9.0 percent (5,100 jobs), followed by Oklahoma (8.1 percent, 5,400 jobs); Arkansas (5.1 percent, 2,600 jobs); D.C. (4.6 percent, 500 jobs); and West Virginia (3.3 percent, 1,100 jobs).

Among the 39 states that lost construction jobs over the past twelve months, Nevada experienced the largest percentage decline (-19.5 percent, -14,500) while California lost the most jobs (-45,700, -7.9 percent). Other states experiencing large declines for the year include Idaho (-15.2 percent, -5,000 jobs); Vermont (-13.4 percent, -1,800 jobs); Montana (-10.5 percent, -2,500 jobs); and Missouri (-10.3 percent, -11,900 jobs).

The two most problematic areas for construction experts to successfully manage are contractual risks and the insurability of projects. Contract reviews and insurance facilitation are critical components in an effective risk management program. Insurance facilitation assumes the likelihood that accidents will occur and seeks an efficient way of distributing and/or transferring the risk.

In many cases the loss is transferred to the insurer, using conventional insurance as the risk transfer method. In other instances, the use of contractual risk transfer methods, utilizing indemnification provisions, are used. However, in most cases, the combination of insurance, risk financing, and contract indemnification provisions are used.
 

With any construction project comes a set of risks. For example, gambling on a contractor whose level of commitment or qualification is uncertain or who could become bankrupt halfway through the construction process can be a costly decision. The Surety Bond is a credit instrument that guarantees the contractual obligations between the contractor and the owner. Surety Bond credit can be very risky to provide, as a result, it is important that a trusted relationship is built and maintained between the Contractor, the Surety Bond Agent and the Surety Company.

Construction Assurance and Surety Bonds

Surety bonds provide financial security and construction assurance by giving project owners the confidence that contractors will perform the work and pay specified subcontractors, laborers, and material suppliers. A surety bond is a risk transfer mechanism where the surety company assures the project owner (obligee) that the contractor (principal) will perform a contract in accordance with the contract documents.

Obtaining Surety Bonds for Construction Projects

Any reputable Surety Bond company will have to establish your credit-worthiness to the Surety Company before a bond can be issued. While different Surety Bond agents will look for different items before obtaining your Surety Bond, some items providers may require can include:

1. A history of your company, work history, organizational chart, and key-employee resumes.

2. A Corporate or Strategic Plan detailing current and future 1-3 year company plans and objectives. This plan should include information about the Buy-Sell and Continuity Plan of the construction company which will provide the Surety an understanding the future management team.

3. Financial statements from the past three year ends prepared by a certified public accountant, or acceptable alternative along with the most current in-house financial information.

4. Work on Hand information for the past three year ends and a current in-house work on hand.

5. Bank Relationships and Credit References.

While these differ from company to company, it gives you a general understanding of what is needed before obtaining a Surety Bond for any construction project.

High levels of employee engagement can translate into high levels of business performance. With better employee engagement comes increased profitability, productivity, employee retention, safety and customer metrics for your business. Hence the reason why effective employee engagement communication is so crucial for all businesses.

RENEE KUHS
Compliance Attorney, HNI

Two U.S. senators have proposed a 25-cent increase in gas and diesel taxes to fund transportation infrastructure and to pay down federal deficits. Senators George Voinovich, R-OH, and Tom Carper, D-DE, are urging the federal commission to recommend the increase in a report to President Obama due next month.

The senators said the reason for their proposal is two-fold. First, they claim the Highway Trust Fund’s revenue stream is insufficient for current outlays and secondly they maintain the existing level of transportation investment is inadequate to sustain current infrastructure and future transportation improvements.

The senators stated that 15 cents of the increase would go directly to the Highway Trust Fund, while 10 cents would be used to pay down federal deficits at first. After enough debt is paid off, the 10-cent portion would be put into the highways account. While the money raised by the tax proposal would remain in a trust account until Congress passes a multiyear highway bill.

Both senators have the general backing of leaders across the transportation community who would benefit from a cash infusion to highway infrastructure. However, the National Journal speculated that the proposal “is not likely to go anywhere in Congress,” as Rep. John Mica (R-FL), who will chair the House Transportation and Infrastructure Committee next year, has recently “put the brakes on talk of a fuel tax increase.”

According to the National Journal, Mica plans to raise the billions needed to improve the highway system by streamlining transportation spending and leveraging public-private partnerships.

Poor employee engagement in the workplace can be a challenge for many organizations today. Businesses must engage with their staff to keep their workforce motivated and productive. It is essential organizations aim to build an engaged, high-performing and responsible workforce. Identifying and solving the challenges associated with employee engagement can help in achieving this aim.

Understanding trends, and knowing and tailoring corporate job offerings to a changing workforce puts an organization and its managers in control so that they can find and implement new ways to raise employee engagement levels. But knowing what engages employees and how to keep them engaged is crucial.

Getting the best rate for your truck insurance can seem time-consuming and daunting. While the quality of your truck insurance policy is essential, getting the best rate available is also important. The insurance industry is becoming more competitive so this gives you a bit of leverage when choosing truck insurance. While shopping around for the best quotes can help you get the best rate going, these easy-to-follow tips will also help you get a better deal on your truck insurance premium.

1. Ensure Truck Safety

When searching for truck insurance keep safety in mind at all times. Ensure that the truck, its mechanics and tires are kept in good condiditon. A well maintained truck can translate into lower truck insurance premiums. Also find out what the Department of Transportation inspection entails so you can ensure that your truck will pass.

2. Have a Clean Driving Record

It is best to keep a clean driving record before embarking on finding the right truck insurance as your driving record will affect your truck insurance premiums. Insurance companies will consider how many years you have driven trucks and also what training you have chosen to undergo.

3. Check Credentials

Get your truck insurance from a leading insurance provider. Always check the credentials of whatever insurance company you choose to go with.

4. Do Not Compromise on Cover

Going with a lower truck insurance premium is not always the best option if your coverage is compromised in any way. Always consider the terms, conditions and the extent of your coverage before committing.

5. Consider Certain Factors

Truck insurance rates can fluctuate based on a number of factors such as safety and theft rates. So before settling on an expensive truck insurance policy, learn the factors that affect truck insurance rates and compare insurance quotes.

RENEE KUHS
Compliance Attorney, HNI

A new study has shown that obese workers are costing companies billions in medical expenses, health plan costs and lost productivity. This combined with health insurance costs, presenteeism and time away from work is estimated to be costing businesses in the region of $73.1 billion for full-time employees.