Public Owners Respond to Industry Recommendations on Volatile Material Pricing and Supply Chain Issues
AGC staff met with representatives from state and regional agencies this week to discuss recommendations sent on May 6th to provide a shared risk model for price increases on construction materials. MnDOT, the Department of Administration, Metropolitan Council, Metropolitan Airports Commission, and Governor’s Office participated. With some exceptions, agencies intend to continue with current practices/procedures. Evaluation will continue on a project-level, case-by-case basis. Although practical and justifiable accommodations have been implemented in other markets, Minnesota’s public owners have been either reluctant to entertain similar options or seem intent on holding to a rigid adherence to the contract terms and conditions regardless of impact or outcome. AGC has continually maintained that if specified materials are genuinely unavailable or if those materials have incurred super-sized cost increases since bid award, it should be a shared risk that both parties strive to mitigate.
Below is a list of Items discussed and offered for consideration of a better shared risk model between public owners and contractors, particularly for those disproportionally affected such as emerging or lower-tiered subcontractors, W/MBEs and DBEs:
- Consistent and Direct Communications to Contractors (memo, one pagers, etc.) of Existing Contract Tools Available to Help Manage Risk
- Price Adjustments on Commodities and/or Fuel
- Price Adjustments via Change Orders
- Process for Appealing to Seek Additional Review
- Reevaluating Language on Liquidated Damages for Delays
- Other innovative approaches
MnDOT agreed to take a look at their current fuel adjustment clause, particularly to consider if other bid items should be applicable. Please send feedback and thoughts you might have regarding these discussions directly to Laura Ziegler.
Please keep sending information regarding materials pricing issues and providing examples of unanticipated increases on projects (both private and public are helpful) to Laura Ziegler. We intend to keep owners apprised of the changing market dynamics and situations contractors are experiencing.
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Congratulations to the 2021 Bridge Award Winners!
These annual awards recognize and showcase craftsmanship, technical skills, innovation, and dedication to quality in the bridge construction market. Each nominee is field reviewed and evaluated by a panel of MnDOT and industry representatives. Winners, which include AGC ontractors and local governments, were recognized at an awards ceremony in June at the AGC Office. Click the thumbnails below for larger image versions.
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Low Cost Structure (less than $1.5 M):
Meyer Contracting
Bridge 27C25 - Bren Road in Minnetonka
First photo (L to R): Nate Schutte, MNDOT; Scott Pelletier, Meyer Contracting; Verlyn Schoep, Meyer Contracting; MistyLee Quast, Meyer Contracting; Ed Lutgen, MNDOT; Will Manchester, City of Minnetonka; Paul Kyle, WSB; Dave Snidarich, WSB
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Medium Cost Structure (between $1.5 and $5 M):
Redstone Construction
Bridge 62735 - Dale Street over I 94 in St. Paul
Second photo (L to R): Nate Schutte, MNDOT; Nate Larson, Redstone Construction; Ed Lutgen, MNDOT
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High Cost Structure (over $5 M):
Kraemer North America
Bridge 69A70 CSAH 61 over French River
Third photo (L to R): Nate Schutte, MNDOT; Rachel Gregg, St. Louis County; Stephen Kaldenbach, Kraemer North America; Ed Lutgen, MNDOT
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Low Cost Structure Winner:
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Medium Cost Structure Winner:
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High Cost Structure Winner:
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Four Minnesota Airports Win Federal Money for Upgrades
A handful of airports across Minnesota have received nearly $25 million dollars in federal funding to upgrade their terminals as part of a broader $1 billion effort by the federal government to improve airports nationwide.
Airports in Glencoe, Preston, Bemidji, and Minneapolis-St Paul International will receive funding under President Biden’s Bipartisan Infrastructure Law.
The purpose of the program is to expand capacity at airports, increase energy efficiency, promote competition and provide greater accessibility for individuals with disabilities.
The biggest chunk of money coming to Minnesota – $ 21.3 million – will be going to MSP to upgrade its main terminal. Read more
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Joint Labor-Management Safety Committees under the MNOSH Act
Some MNOSHA requirements differ from federal OSHA. One example is MNOSHA’s safety committee requirement—and failure to establish one is a “serious” violation. MNOSHA includes safety committee composition requirements. However, DOLI’s interpretation of these requirements might go beyond the letter of the statute. Learn more about how DOLI interprets MNOSHA’s safety committee requirement. Learn more
Jesse and Matt are members of the Fabyanske, Westra, Hart & Thomson's Construction Law Department. Jesse can be reached at 612.359.7637 or jorman@fwhtlaw.com. Matt can be reached at 612.359.7611 or mnelson@fwhtlaw.com
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AGC of America needs your help to measure the scope of construction labor shortages
The construction industry has experienced some very significant and sudden changes during the past few months that have led to dramatic changes in demand for work, availability of key construction materials, and the need for new workers. We want to understand exactly how those changes are impacting the industry’s current workforce needs to better be able to advocate for measures to help the industry’s labor needs in both the short- and long-term.
That is why AGC of America is asking you to take a few minutes to complete a workforce survey. The more people understand the scope, and consequences, of current labor market conditions, the more likely they are to enact measures to help meet the industry’s needs. The more members who take the survey, the better able we all will be to describe labor market conditions where you operate.
If at least 20 contractors in Minnesota participate in the survey, AGC of America will produce a Minnesota-specific report which we will make available.
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NEXT WEEK:
Summer Member Meeting in Duluth
All AGC members are invited to join the AGC staff and Board of Directors on Wednesday, July 13 (4:30-6:30) p.m. for a member meeting at the Great Lakes Aquarium in Duluth!
Come get together with your industry peers, enjoy some food and drink outdoors, and tour the aquarium.
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Thank You to our Member Meeting Sponsors! |
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2023 Minnesota Construction Summit
Planning for the 2023 Minnesota Construction Summit is in full swing! Registration for attendees, sponsors, and exhibitors is open - click the buttons to reserve exhibiting space, sign up as a sponsor, or save money by registering early to attend! |
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Lots of options for promoting
your company!
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Save $35/attendee by registering early for the Summit! |
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Thank You to our Platinum Summit Sponsor! |
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Thank You to our Bronze Summit Sponsors! |
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RFP for Summit Presentations
If you would like to respond to the open call for presentations at the Summit, please complete this survey. |
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Golf Tournament
The 2022 golf tournament is sold out, but a few sponsorship opportunities remain!
If you would like to be a breakfast or lunch sponsor, or donate to raffle items, contact Lisa. |
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Thank you to our Cart, Bloody Mary/Mimosa Bar,
and Beverages on the Course Sponsors!
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St. Paul Saints Game with MBEX
Join the AGC Leadership Blueprint Alumni and Minnesota Builders Exchange (MBEX) Young Professionals for an afternoon of Minnesota Twins AAA baseball. On August 10 at 1:07 p.m., the St. Paul Saints will take on the Columbus Clippers (AAA team for Cleveland Guardians).
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2022 Sporting Clays Fundraiser
Reserve your team or sponsorship for the 2022 Sporting Clays Fundraiser, held on Wednesday, September 14! Proceeds go to the AGC of Minnesota Foundation, which provides scholarships to students pursuing a career in the construction industry.
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Thank You to our Food & Beverage Sponsors! |
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Save the Date!
Mark your calendar for the following AGC events coming up in the next year!
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Your Trusted Resource
Associated General Contractors of Minnesota
525 Park Street, Suite 110 | St. Paul, MN 55103
651-632-8929
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