Sunday, February 1, 2009

Infrastructure Stimulus Appropriations Likely To Increase

The Sunday interview shows were populated by Senate leaders from both sides of the aisle, talking about the stimulus legislation coming to the floor the first week in February. Republican and Democratic leaders don't agree on much, except that infrastructure spending in the bill needs to be increased. It's difficult to predict what other changes we may see in the legislation on the Senate floor or in the Conference Committee, except that tax cuts will also likely change in form and increase in overall amount.

It looks at the present moment like the final package may include as much as $200 billion for the construction industry over the two years provided for in the legislation. There is little doubt that the industry can absorb this much activity in two years' time, the real question is whether federal, state and local bureaucracies can handle the work in such a short time. Besides positioning themselves to bid promptly and responsively on this much work, businesses in the construction industry need to do everything they can to assist the politicians and bureaucrats with the paperwork required to move so much money through the pipelines promptly. And union hiring halls need to gear up for an unprecedented demand for building trades workers.

All workers hired for these projects will have to be screened through the federal E-verify system for checking a worker's legal right to be employed in this country. Some of these projects will be on military bases and other government installations where security regulations will also mean drug testing and criminal background checks, even if union/employer labor agreements do not already call for such checking in a particular trade.

If your business is seeking to participate in this bonanza of government spending, it needs to get ready now to be in a position to promptly, effectively and smoothly comply with all the paperwork requirements which will be imposed before payment will forthcoming on these projects.
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