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Construction Industry Round Table Letter to Chairman Issa - January 6, 2011

Construction Industry Round Table Letter to Chairman Issa - January 6, 2011

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Published by CREW
In December 2010, Representative Darrell Issa, Chairman of the U.S. House Committee on Oversight and Government Reform, sent a letter to over 150 companies, trade groups, and research organizations asking them to identify federal regulations that adversely affect job growth. This letter is one of the many responses that CREW has collected and posted for public review.
In December 2010, Representative Darrell Issa, Chairman of the U.S. House Committee on Oversight and Government Reform, sent a letter to over 150 companies, trade groups, and research organizations asking them to identify federal regulations that adversely affect job growth. This letter is one of the many responses that CREW has collected and posted for public review.

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Published by: CREW on Jan 28, 2011
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04/06/2012

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ConstructionIndustryBoundThbIe
BOARD oF DIRECT0RS
Ch^irmaa,Linda FiggPr€side & CEO, Figg EngrneenngGroupViee Ch^ftma\ Robett E. AlgelCEO & President, he LaneConstructionCorp.T reasnrer, Patrick MocleamyCEO,HOKCroup,nc.Prst Chairman,MattewM. WalshCEO, The WalshCrroupPresident,ugo Consultants,nc.Presidenl,CDMWillian B. FraselCEO,Carlson roup,nc.Thonas F.Gilbane,Jr.Chainnan CEO,GilbaneuildingCompanyCharlesL.GrccoPresident& CEO, LINBECKDa ald F.GreenwoodPresident,Bums & McDonneli ConstructionBruce E.GrewcockPresidentCEO,PeterKiewitons'.Inc.Craig L. MartinPresident,acobsEngineeringGroupA. RossMye6Presid€nl,Amencan nfiastructure, nc.Patficia A. RodgercPresident,odge6BuldersChajrman CEO,Sarge &LundyLLCDouglas E. WoodsPresideni, PRConstruction.nc.
Mark A. Ca.so. Esq.8ll5 Old lomnrion r..Suite10M.l.eD, \'A 22102-2325l'h.,x,:20266 6i77$/.bSite:Ltr\t.{irt.,trg
January,2011TheHonorablearrell . ssaChairmanU.S.House f ReDresentativesCommitteenOversightndGovernment eform2157Rayburnouse fficeuildingWashington,C 20515-6143Dearhairmanssa:Onbehalf f heConstructionndustryound ableCIRT)1,ewishothankouor equestingheRound able'sarticipationn hecriticallyimportantffort o dentify xisting ndproposedegulationshathave rmaynegativelympactobgrowthn our ndustry."Times money" othaxiomaticnd ruenhedesignndconstructionindustry which emains eavilyaborntensiveo hisday. So, fsomethingakesmoreimet cost obs.. thus,egulatoryelays,redundancies,nefficiencies,ndedapecollectivelyave directmpactoncosts nd hereforehevitalityndability f our ndustryo remainprofitablendhiremoreeople.EvenheAmericanublicas omeo his onclusion,ithnoverwhelming1percentgreeinghat hegovernmentneedsbasicoverhaul"nd hould ndertakeanannualspringcleaning'toliminateunnecessaryegulationsnded ape." ccordingo a recentGlarusResearchroupoll Dec.010).Desiqn nd ConstructionommunitvThedesign/constructionommunity's'can-do-spirit"ndknow-hovf'tillexists,t'susthardindnderhemountainsf aws,egulations,nd ulesthatwensistnheaping ntoourprivateectorobcreators nd henexpecthem o spureconomicroMhndemployment.otonly sheexistingassurdensomewhichnemight alltheegulatoryomplex"),theuncertaintyndunintended onsequencesf whatappearso beanever nding xpansionfgovernment'seach asalsodone everedamageo heentrepreneurialpirit nd isk aking bothnecessaryojumpstart robustecovery.
1TheConstructionndustry Round TabtoCtRnstives toqeateonevoicetameet the intercstand needsof the design and constructionconnunity.C|RT suppotts ts menbers by activelyreprcsenting he industry onpublic policyissues,byimprcving he inage andprcsenceofitsleadingnenberc,andbyprovidinga forum fot enhancingandlor developingstrcngnanagenent apprcaches n an everchangingenvircnnent through netwotuingandpeerinteraction.The RoundTable sconposedof approxinately 100 CEO,frcntheeading architectural,engineeng,and consttuctioninns n the United Sfates. Iogeibe,'fhesefrrmsdelivet onbillionsof dollar, ofpublicandpivatesectotnfrastructurcproj&tsthat enhance hequalityoflife of all Aneicans whiledl@gluenployinghalf-nillion Aneicans.
 
CIRTLetter nExcessive egulationsJanuary,2011Page woTheprocessf designingndconstructings oneof man'smost omplex nddauntingndeavors itoftens hemeans ywhichwemeasurehesuccess f anentire ivilization towit,heruins"fancientorldsre ypicallyiewed s howadvanceheywereor how esourcefulnd asting). Partof hecomplexityshenumberfpartiesndnterestedlayershatmayhave handnornfluenceoveragiven roject,dd o hat henumber f ayeredurisdictionsfederal,tate,ocal,tc.);ndonebeginso understandhe myriadlacesndopportunitieshere elay/redundancyancreep intoheprocesshrough nnecessaryed ape.Thisprocessasbecomerofoundlyore omplicated,srecently otedn he CivilEnoineerELOG:[t]henvironmentalrotectionovementascontributedo heuncertainty orconstructionbecausefhe nabilityo knowwhatwillbe equirednd how ong t will ake o obtain pprovalromtheegulatorygencies.he equirementsf continuede-evaluationfproblemsnd he ackofdefinitiveriteria hich reoracticalave lsoesultednaddedosts."While xamplesf red apecanbe ound nprocurementf services,nvironmentalequirements,publicafety,inancialequirementsFinReg),rojectelivery,aymentystems, enefitmandates(healthare eform), ndcountlesstherreas theyall hold ome hingsn common:ackofuniformity,edundancy,ndnefficiencies.(A)Streamlininq"Asapeopleehave hosenounctionnderpoliticalystemhatpromotesiversityfgovernmentaluthority,ndstructure. s a result, e have evelopednationalegulatoryystemwellmeaningn ts ntentions,ut ayered ndoverly omplex.Oursocial urposes,issions,ndpublicnterestsftenompete, ithour44,000urisdictions,ll50states, everalerritories,nd hefederalovernmentachmending,dopting,nterpreting,ndenforcing ivemajor etsofconstructionodes ndover2,000echnicaltandards overninghesit[e election],esign, ndconstructionf bu,idlngsNOTE:ust buildings"s being onsideredere in otherwordsverticalconstruction"not oads, ridges, nvironmentalemediation,tc.etc.)." See,NCSBCSnd ts54nationalartnershereinafterAlliance"]websiteentitled: treamliningtheNation's uildingReguatoryP oce s(www.csbcs.org/newsite/Streamine/Stream.tm)'Andhecost f red ape anbe substantial.heAlliance/FIATECHroject as oundhatncreasingtheefficiencyfmodern onstructionodes,ules, ndegulationsswellas reducingheamount f timetakeso move newbuilding r buildingenovationhrough he egulatoryrocessyasmuchas60%annually,analso aveboth he privatendpublicectorsensof billions f dollars.When xtrapolatedo heullconstructionarket,hestudy oteshat:
'zfhe Environmentatrctection gencyEPA)hasongbeena sourcef rcgulatorynefficiencynd costs.Almost0yearsagoL,A!9Lfut9pbSUoL 59,No.1, ebruary 983)publishedn afticleentitled:lnpactofRegulatory elays n he Cnst fWastewaterreatment lants" yKisla S. Reed ndC. EdwinYoungwhich ointedut hat"Thecd tapenec$sary o neettheEPAcquiementsrequently elays he s&,ttol constructionanaverage l2 to 4years.'E@page35.3TheNational ,onfetencef States nBuildingCodes nd Standards,nc.NCSBCS)aswo*ed over heyearswith edeftlagenciesndpublicandpivatesector ryanizations,ndhasnowoinedwith heEl![EPL!:3reA0]i0qgepi@and heStateand Localovernmentuppod ctivities f Robeftwible&Associates ithagoalo rcduce he amountftimet takes o movebuildingshtoughhe egulatory ystenby as muchas 60%.
 
CIRTLetter n Excessive eoulationsJanuar/ ,2ol1Page hreeRegutatoryosts lOok f he Annual$1.0rillionn tJ.S.Constructionr$100Billionn costs.aBUT, venwith hese normousavingsmuch,f notall, J he purposef heseroceduresouldbeaccomplishedithoutheunnecessaryelaysndcosts'that's otusta theory, uta factproveny heexperiencesornerom projectscrosshecountry hen ime s of heessence. (B)Contrastino roiectExperiencesThere reanynumber f examplesndexperiencesver he yearswherewecan ocus n heclear unmistakableessons e've earned ndputhem o workacrossheboard na myriad f publicprojectso hatwegethebenefitsfefflcient,cience-based,ndcosutimeensitiveegulations withoutheunnecessaryndwasteful urdens. rwecan gnorehemandcontinue ithwasteful inefficientrocedures..Cuftinq hrouqh edTapeEarlvCompletion):fterbarely neyear somehreemonthsahead fschedule)new -35W ridgetood here ne ragicallyollapsedn Aug.1 007.The ldspan arried orehan 40,000ehiclesdayand he oss f hebridge as costing400,000erday ndiminishedevenue,ncreasedommuterxpenses,nd burdenonsurroundingoads.Businesssusual'andeedlessegulatoryelays ould otbeacceptabler oleratedy hedevastatedommunity. henncentivesxist,heegulationsandedapecanbeovercome/managedndeliminatedo create notableuccess:heInterstate5Wbddgeeplacementrojectascompletedarly/belowudget ndwasawardedmerica's ransportationwards'randPrizeor 2009 y heAmericanAutomobilessn.,heAmerican ssn. f StateHighway Transportatlonfficials nd he U.S.ChamberfCommerce. RESOURCE:inda igg, iggEngineeringroupFL)l.Tvoical roiect elavs: heprojecto rehabhecity of chicago'sRedline"andbring t o astatefgoodepair,ntsexistingight waywhichs currentlyn disrepairndfalling
"The Alliance d@unented the savings ron streanlining and use oflT methods orbuildingprcjectsand then appliedtto2007 Construdion Data(today,constructionspending s down to apprcxinately$810billion, ofwhichabout$256biion is innon+esidenti l bu lding).5TheAlliance/FIATECHweb slte rofes:'lhlsis not about cgulatory abandonnent! This s aboutspending bothgovemmentandpivatesector dollars wisely."By 2007, the study found vast savings ton seeningly sinply efficiehciessuch as:(1)e-Pemittuocessingnow used n over fiojuisdidionsacrcss he nation Enging inpopulationrcn Los Angeles(3,695,000)o Cobleski NY(5,300)cduce &aff and building owner/architect ines toppcess pemitsby between 30-40%;(2)lntenctive Voice Resporse(/yR)sysiems,, Shelby Co.,TN;Orlando,FL and Washingtonco., oR reduce the time toscheduleand conducl inspedions rcm 2-3 days to less han 24 hours;(3)Mobile ield inspection echnologybeing usedncities ncludingPhoenix,AZ:SanDimas,CAincrcasethe nunbet of inspectionspeiomed petday by 25% and rcducecontactot down ime waiting or inspectionsand their rcsultsby 20%;(4)e-Plan Review now being conductedn: Atlanta,GA;Bend, OR; Madcopa Co. AZ; OsceolaCo. FL and a dozen otheruisdidionsrcduce theamount of time t takes to reviewplansby 40oA, lininate lostplans,and rcduce by 80% henunberof tipsto theseuisdictionsby out of stateownergarchitects;and(5)strcamlinedprccessesarcgeftingbuildings up and open faster,puftingbothpeopletoworkandrcvenues nto lheuisdiction'scoffeB soonef fot example a 200 toon hotel openjust3monthsearlier using strcamlinedptocesseswithan 800/6 ccupancy=$144,000naddedax rcvenues o aurisdbtion justfton the 10o/o ccupancy ax on$111/nightroons.

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