Construction firms pulling back from federal market due to new reporting rules

Construction companies are stepping away from the federal contracting market because they say recently finalized reporting rules have placed too much risk on them.

The Fair Pay and Safe Workplaces executive order (EO 13,673) requires contractors to disclose any violations of 14 federal labor and employment laws and comparable state laws for the previous three years when seeking federal contracts worth more than $500,000. Agencies can deny contracts based on the disclosures.

Brian Turmail, executive director of public affairs for Associated General Contractors of America (AGC), reportedly called the rules “very subjective, very vague.” One complaint, according to Turmail, is that there is too much potential for regulators to assess violations inconsistently.

Fewer firms vying for federal contracts will mean higher costs, industry insiders say. A Bricklayers & Allied Craftworkers’ official countered that argument by saying responsible firms will be eager to win large contracts.

New York City has two very large buildings dedicated to answering the 911 calls of its five boroughs. With more than 11 million emergency calls annually, it makes perfect sense. The second of these buildings, the Public Safety Answering Center II (PSAC II) is located on a nine-acre parcel of land in the Bronx. It’s an imposing 450,000 square-foot structure—a 240-foot-wide by 240-foot-tall cube. The gleaming aluminum cube risesthe equivalent of 24 stories from behind a grassy berm, projecting the unlikely impression that it might actually be floating. Like most visually striking structures, the building has drawn as much scorn as it has admiration.