The 2024 91¶ÌÊÓƵ/FMI Study highlights key risks in the construction industry. Based on responses from 91¶ÌÊÓƵ's in-house risk managers workgroup (collected Dec. 2023 – Jan. 2024), the top concerns include labor shortages, design issues, changes in insurance terms and costs, project delays or cancellations, and changes in contract language. However, one of the most alarming trends highlighted by the study is the uptick in subcontractor defaults. Seventy percent of respondents are seeing an increase in subcontractor defaults compared to one year ago, with nearly half reporting firsthand experience of project disruptions due to subcontractor defaults. Root causes behind subcontractor distress include financial instability, lack of skilled labor, and quality issues -- especially affecting electrical, plumbing, and concrete trades. In response, construction risk managers are enhancing subcontractor prequalification measures, including more thorough financial and staffing evaluations, seeking out new subcontractors, and increasing review frequency.
UPDATE: On March 8, 2024, the court handed 91¶ÌÊÓƵ and co-plaintiffs a major victory when it granted our motion for summary judgment and vacated the NLRB’s rule. On May 7, 2024, the NLRB filed a notice of appeal in the U.S. Court of Appeals for the 5th Circuit. On July 19, the Fifth Circuit granted NLRB's motion to voluntarily dismiss its appeal challenging vacatur of NLRB's 2023 joint employer rule.
Construction employment increased in 37 states in January from a year earlier, while 33 states added construction jobs between December and January, according to a new analysis of federal employment data released by the Associated General Contractors of America today. Association officials noted that demand for construction remains strong in many parts of the country, but cautioned that labor shortages are restraining employment gains in the sector.
Rule Implementation on Hold Due to Litigation
Change can be difficult. Newly added guidance available from the 91¶ÌÊÓƵ Contract Documents Forum helps members navigate change in design-build construction contracts and beyond.
On February 27, 91¶ÌÊÓƵ of America, 91¶ÌÊÓƵ of Missouri, MTech Mechanical and Faith Technologies Incorporated (FTI) were recognized by Construction Working Minds (CWM) for efforts to promote mental health in the construction industry. These organizations demonstrated outstanding commitment to fostering supportive and mentally healthy work environments while enhancing overall productivity and success. To learn more about each organization and their efforts, click on the links below to be redirected to their respective award videos. Congratulations to all the winners!
On February 15 and 27, respectively, 91¶ÌÊÓƵ along with its partners on the Construction Industry Safety Coalition (CISC) met with representatives from the Office of Information and Regulatory Affairs (OIRA) to further discuss the Mine Safety and Health Administration’s (MSHA) proposal to update its existing standards to better protect miners against occupational exposure to respirable crystalline silica and the Occupational Safety and Health Administration’s (OSHA’s) proposal to expand who can serve as the employee representative during the walkaround portion of enforcement inspections. The review of the rules by OIRA signals the final step in the rulemaking process before each will be published in the Federal Register. 91¶ÌÊÓƵ and its coalition partners used the meetings as an opportunity to reiterate concerns raised in our comments on both the MSHA silica rule and the OSHA worker walkaround rule, while also expressing concerns at the speed of which the rules are being promulgated. 91¶ÌÊÓƵ will continue to track each rule as it moves through the process and provide updates as they occur.