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Construction Industry Bound ThbIe
BOARD oF DIRECT0RS
Ch^irmaa, Linda Figg Pr€side & CEO,Figg Engrneenng Group Viee Ch^ftma\ Robett E. Algel CEO & President, The LaneConstruction Corp. T reasnrer, Patrick Mocleamy CEO,HOK Croup, Inc. Prst Chairman, Matt ew M. Walsh CEO, The WalshCrroup President, fugo Consultants, Inc. Presidenl, CDM Willian B. Frasel CEO,Carlson Group, Inc. Thonas F. Gilbane, Jr. BuildingCompany Chainnan CEO,Gilbane & Charles L. Grcco President CEO,LINBECK & Da ald F. Greenwood President, Bums & McDonneli Construction Bruce E. Grewcock President CEO,PeterKiewit & Sons'.Inc. Craig L. Martin President, EngineeringGroup Jacobs A. RossMye6 Presid€nl, Amencanlnfiastructure,Inc. Patficia A. Rodgerc President, Rodge6 Bulders Chajrman CEO,Sarge &LundyLLC & Douglas E. Woods Presideni, DPRConstruction. Inc.

January 2011 6, TheHonorable Darrell lssa E. Chairman U.S.House ReDresentatives of Reform Committee Oversight Government on and Building 2157 Rayburn House Office Washington, 20515-6143 DC Dear lssa: Chairman (CIRT)1, wish we Industry Round Table to Onbehalf theConstruction of participation critically you Table's inthe thank forrequesting Round the regulations have that or important effort identify to existing proposed and job maynegatively impact growth ourindustry. in "Time money" axiomatic truein thedesign construction and is both and intensive thisday. So,if to industry which remains heavily labor jobs. . . thus, regulatory delays, something more takes time cost it have impact redundancies, inefficiencies, redtapecollectively a direct and of to on costs therefore vitality ability ourindustry remain and the and profitable hiremorepeople. and public come thisconclusion, an with Even American has to the a overwhelming percent 81 agreeing thegovernment that "needs basic 'spring "an cleaning'to eliminate overhaul" should and undertake annual regulations redtape." according a recent to Glarus unnecessary and poll 2010). Research Group (Dec. Communitv Desiqn and Construction still community's'can-do-spirit" and"know-hovf' Thedesign/construction regulations, rules and find the of exists, justhard under mountainslaws, it's job onto sector creators then and thatwe insist heaping ourprivate on groMhandemployment. onlyis the Not expect themto spureconomic (which might "the mass one call regulatory complex"), existing burdensome consequenceswhatappears bea of to theuncertainty unintended and reach never ending expansion government's hasalsodonesevere of to damage theentrepreneurial andrisktaking bothnecessary to spirit jumpstart robust a recovery.

1 The Constructiontndustry Round Tabto(CtRn stives to qeate one voice ta meet the intercst and needsof the design and constructionconnunity. C|RT suppotts its menbers by actively reprcsentingthe industryon public policy issues,by imprcving the inage and prcsence of its leading nenberc, and by providing a forum fot enhancingandlor developingstrcng nanagenent apprcachesin an everchanging envircnnent throughnetwotuingand peer interaction.
Mark A. Ca.so. Esq.

The Round Tableis conposed of approxinately 100 CEO, frcn the leading architectural, enginee ng, and consttuctionfinns in the United Sfates. Iogeibe,'fhese frrmsdelivet on billionsof dollar, of publicand pivate sectot infrastructurcproj&ts that enhancethe quality of life of all Aneicans whiledl@glu enploying half-nillion Aneicans.
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Regulations CIRTLetter Excessive on January 2011 6, Page Two Theprocess designing constructingoneof man's is most complex daunting and endeavorsit of and (to we the of civilization wit,the"ruins" of often themeans which measure success an entire is by Part worlds typically viewed howadvance wereor howresourceful lasting). as they and ancient are players mayhave handin or influence is that a of thecomplexity thenumber parties interested of and jurisdictions project, to thatthenumber layered (federal, local, and add of state, etc.); overa given places opportunities and where delay/redundancy creep can onebegins understand myriad to the intotheprocess through unnecessary tape. red profoundly complicated, recently noted lhe Civil in Enoineer Thisprocess become has more as protection "[t]he for movement contributed theuncertainty construction has to ELOG: environmental approval from to whatwillbe required howlongit willtaketo obtain and because theinability know of re-evaluationproblems thelackof of and The of theregulatory agencies. requirementscontinued in costs." definitive criteria which oractical alsoresulted added are have in of environmental requirements, While examples redtapecanbefound procurement services, of payment public (FinReg), project systems, benefit mandates financial requirements delivery, safety, (health reform), countless lack areas theyall holdsome things common: of in care and other uniformity, redundancy, inefficiencies. and (A)Streamlininq "Asa people havechosen function of a system promotes that diversity we to under political governmental regulatory system As we developed national a authority, structure. a result, have and purposes, missions, and in but and complex. social Our wellmeaning itsintentions, layered overly jurisdictions, 50 states, public territories, the and interests compete, our44,000 with all several often government amending, five setsof adopting, interpreting, enforcing major and federal each governing sit[eselection], the design, and codes over2,000 and technical standards construction "vertical just (NOTE: "buildings"being is considered - in other here words constructionbu,idlngs of - not and remediation, etc.)." See,NCSBCS its54 etc. construction" roads, bridges, environmental 'Alliance"] siteentitled: partners Building national web Streamlining Nation's [hereinafter ^the line/Stream. htm)' Regu Iatory roce (www. P ss ncsbcs.org/newsite/Stream Project found increasing has that Andthecost redtapecanbe substantial. Alliance/FIATECH of The as the of construction codes, rules, regulations wellas reducing amount and theefficiency modern of process as much the by to a or renovation through regulatory timeit takes move newbuilding building sectors of billions dollars. tens of can the and as60%annually, alsosaveboth private public notes that: market, study the When extrapolatedthefullconstruction to

'zfhe Environmentat (EPA)haslongbeena source rcgulatory of inefficiency costs. Almost years and 30 Prctection Agency "lnpactof Regulatory Delays the Cnst on of February 1983)published afticleentitled: an agoL,A!9Lfut9pbSUoL 59,No.1, pointed that"The tapenec$saryto neet rcd and which out Wastewater Treatment Plants" Kisla S. Reed C. EdwinYoung by ol2 to 4 years.'E @page35. frequently delaysthe s&,ttol constructionan average theEPArcquiements 3 TheNational has Codes Standards, (NCSBCS) wo*ed overtheyearswithfedeftl and lnc. C,onfetence States Building of on jqgepi@ andthe State oryanizations, hasnowjoinedwiththeEl![EPL!:3reA0]i0 and agencies publicandpivate sector and government of to wible & Associates a goalto rcduce amount timeit takes move with the and Local suppod activities Robeft of buildings thtough regulatory the systenby asmuchas 60%.

CIRTLetter Excessive on Reoulations Januar/ 2ol1 6, Page Three = Regutatory Costs lOok the Annual$1.0 of trillion tJ.S. in Construction$100Billion costs.a or in procedures BUT, even these with enormous savings much, notall,oJthepurpose these if of could beaccomplished without unnecessary delays costs'- that's justa theory, a fact not but the and proven theexperiences fromprojects by borne across country the whentimeis of theessence. (B)Contrastino ProiectExperiences There anynumber examples experiences theyears are of and over where canfocusontheclear we unmistakable lessons we'velearned putthemto workacross board a myriad public and the on of projects thatwe getthebenefits efflcient, so science-based, cosutime and sensitive regulations of without unnecessary wasteful the and burdens. we canignore Or themandcontinue wasteful with inefficient Drocedures. . Cuftinq Throuqh Tape(Earlv Red Completion): barely year(some After one threemonths 2007. ahead schedule)newl-35W of a bridge stood where tragically one collapsed Aug.1 on Theoldspan carried more than140,000 vehiclesdayandtheloss thebridge a of was per costing revenue, increased commuter expenses, burden and $400,000 dayin diminished not onsurrounding "Business usual'and roads. as needless regulatory delays would be When incentives theregulations acceptable tolerated thedevastated or by community. exist, The andredtapecanbeovercome/managed eliminated create notable and to a success: project completed Interstate bddge replacement was budget was and 35W early/below America's Transportation Awards' Prize 2009bytheAmerican for awarded Grand Automobile Assn., American the Assn. State of Highway Transportatlon & Officials the and U.S. Chamber Commerce. of Linda Figg Engineering (FL)l Group [RESOURCE: Figg, 'Redline" bringit to a Tvoical Proiect Delavs: project rehab city of chicago's The to and the of right is in and state goodrepair, itsexisting away(which currently disrepair 'falling on

.

" The Alliance d@unented the savingsfron streanlining and use of lT methods for building prcjects- and then applied it to 2007 Construdion Data (today, constructionspending is down to apprcxinately $810 billion, of which about $256 bi ion is in non+esidenti building). al 5 TheAlliance/FIATECH web slte rofes: 'lhls is not aboutrcgulatoryabandonnent! Thisis aboutspending bothgovemment and pivate sector dollars wisely." By 2007, the study found vast savingsfton seeningly sinply efficiehciessuch as: (1) e-Pemit tuocessingnow usedin over fio juisdidions acrcss the nation Enging in populationfrcn LosAngeles (3,695,000)to Cobleski , NY (5,300)rcduce &aff and building owner/architecttines to ppcess pemits by between 30 - 40%; (2) lntenctive Voice Resporse (/yR) sysiems,, Shelby Co., TN; Orlando,FL and Washingtonco., oR reduce the time to scheduleand conducl inspedions frcm 2-3 days to less than 24 hours; (3) Mobile field inspectiontechnologybeing used in citiesincludingPhoenix,AZ: SanDimas, CA incrcasethe nunbet of inspectionspeiomed pet day by 25% and rcduce contactot down lime waiting for inspectionsand their rcsultsby 20%; (4) e-Plan Review now being conducted in:Atlanta, GA; Bend, OR; MadcopaCo., AZ; OsceolaCo., FL and a dozen otherjuisdidions rcduce the amount of time it takes to review plansby 40oA, elininate lost plans,and rcduce by 80% the nunber of tips to thesejuisdictions by out of state ownergarchitects;and (5) strcamlined prccessesarc gefting buildings up and open faster, pufting both people to work and rcvenues into lhe juisdiction's coffeB soonef fot example a 200 toon hotel open just 3 months earlier using strcamlined ptocesseswith an 800/6 occupancytax on occupancy = $144,000in added tax rcvenues to a jurisdbtion just fton the 10o/o $111/night roons.

Requlations CIRTLetter Excessive on zot Januari6, t Page Four down') estimated cost$4 billion. theCTA"Chicago is to lf Transit Authority' themoney had in theirhands today, project could befinished 2019; the sll// not until eventhough the construction should taketwoyears. delay some The of 7-years dueto theEPA,ElS, is onlv groups have touch prolect (notwithstandingan existing it's line andalltheother that to the now) for The of thatis operating preventing startof construction years! Mayor Los the Angeles facing same is in in the typeof delays building number hisprojects hiscity. a of (lL)] Jim Kenny Management Services, IRESOURCE: Kenny, (C)Procedures Process & (or Hidden anydiscussion regulatory in of waste theprocedural process is and burden "paper work") typically Examples thisprocess bothuniversal are in that accompanies rules. any of groups application often and timesunique specific industry or to and/or regulated areas. The is same trueforthedesign/construction community. . Compliance Paper and WorkCosts/Delavs: Somewhat unique theA,/E/C to community, the full-time federal agencies appear be"beefing-up" hiring to and staffers assign large to to 'stimulus" projects involving so-called funds, wtrere theyarerequiring monthly oversight guidelines. SanDiego is in meetings ensure to compliance federal with The courthouse the (over category sucha "mega-project" $100M): of contractors devoting number people are a of is andresources make to suretheyarein complete compliancethepaperwork required akin a monthly to federal audit. haveincreased Regulations notbeenaltered have drastically, chances being but of audited promised. OFCCP, fact, eliminated The in has their andaudits a greater to depth have been "desk process procedure havemoved moreaggressive in-depth auditing audit" and to on-site greater preparation potential for audits the on across board thisthenrequires the of letter on contractors' in anticiDationthenotification or knock thedoor. oart . Procurement forConstruction Rules Proiects: Another example regulatory making of rule that procedures A,/E/C projects: hasa direct impact costs/time relates procurement for on to (PLA)on FederalConstructionProjec6: fhe D Useof project Labor Agreements (Feb.6, President Executive OrderNo.13502 newruleseeks implement to Obama's 2009), which thefirst for timeestablishes a policy of'encouraging' federal agencies projects imposing union-only PLA's federal on construction whose total to consider potential likely) (and Besides obvious the impact on costs exceed million. $25 projects (which increasing forfederal means proiects be initiated), less can the costs proposal endruns also Congressional mandates laws." and Ben [RESOURCE: Brubeck, (brubeck@abc.orq)l ABC > Redefining Governrnentar": of themorepernicious One expansions of "lnherently governmentitswillful is efforts compete theprivate to with sector.To further that process expand flipthe aim,theAdministration undertakenrulemaking has a to and governmental' asto prevent intent whatis 'inherently of so workfrombeing contracted theprivate to sector. Clearly hasa direct this impact theability firms on of

" Theproposal govemnent a (as involve federal contenplates expanding PLAmandate prcjects do notditectly the to that lhe paftyto thecontract) sinply attaching rcguircment thefunding. Curently,cases appeat restict suchan expansive to by the to rcading the NLRI'.Theprcposal inbrtercswithCongrcssional of also direction federal that agencies should stive to "obtain in Acl." the and 5 fullandopenconpetition" setfotthin the 'Conpetition Contrccting Moreover, ruleviolates ignores U.S.C. as (Congrcssional e,04 Review andtheREgulatory Act) Flexibilih/ Acl.

CIRT Letter Excessive on Regulations January 2011 6, Page Five to survive mainta-in personnelthegovernment and their if agency reduces stops or contracting work.' out John BCFC IRESOURCE: Palatiello, (iohn@impa.us)]. > "CardCheck"Thepotential remains, without votesin Congress pass the to a change thelawrelated theso-called "Card in to legislation, Administration Check" the willturn theNLRB's to rulemaking authority. theconstruction Given industry's labor intensive (at nature, thefactit is fairlyhighly and unionized approximately 14.5olo), sucha ruleor regulatory change have immediate direct will an and impact the on construction of Dortion theindustrv. Conclusion Thetimehascome, notlongpast, etforts focus waysto rolFback, if for to on sunset, repeal, and/gr 'regulatory de-fund excessive the complex" hasarisen newheights thepastde-cade." that to over Beyond these measures, courts alsoneed playa roleto reverse imbalance.' the may to the Short outright repeal of and/or elimination excessive of regulations rules, affect the and of streamlining whereby them actions doneconcurrently shared are and among between and jurisdictions/agencies a project move sothat may forward a timely in manner devoid unnecessary of greatly delays would improve ability F|./E/C to complete andgainfully the of tirms work employ more projects subject endless Americans. now,dollars Right allocated be spent these to on are to redundant consuming often time and wasteful rules weigh which down efficiencies delivery and times, while increasing costs. jobs,andbecome government To expect U.S.economy expand, the to create robust through intervention excessive and regulations,to expect is something "neyer andnever be"-to that was will paraphrase Thomas Jefferson.
Sincerely,

Construction lndustrv Round Table
guidance TheOFPP lefte/sconstruct intentof fedeal policyto contrcct-out goods fot and ry9!&Sthe oiginalandlong-held govemnental" naturc, onethatnowsuggests agency seryices in to that officials nust proveit is !l!959 theywete"inhercntly gov6mm6ntal" (Match 2010)]. to contnct-out. 75Fed. Reg.16,196 31, D9!"inherently [See, 3 CIRT awarc thenew111 Congress take-up nunberof proposats seek rcbalance is that nay a that to and/oraddrcss the rcgulatory complex is rcpidly that teplacing C,ons,titutional the saEguards divisions arcthehallna* of oul and that govemnental systen.TheRound Tablesuppotts effodsandcommends such these alotv withsuchsuggestions put fotlh as byJ.T. Young applydeficilcutting to techniques creating "Regulatory by a Budget" begins quanw theenomous that to "hidden found excessive pageAl l]. in tax' regulations rules. and [See,Viewpoint, (Dec.29,2010) Ep e L)nfoftunately, coutts the have been exploited used expandthercgulatory and to rcach advocatel have usedthen by who (often outside thei expettise scientific of ot knowledge sonetimes influenced faullyor evenfhudulentdata,as in lhe case by pt@essot Congrcssional of CO2emissions) gethvonble rcgulatory to outcames fat exceeded rulemaking that the intent. However norc rccently, couttshavecane dot n hardon someexcessive the rcaches theFCC(inthe caseof "net by proposed (f neutrclity' tules),EPA Arcuitrenandedthe 2009 construction stom water rule),and Dol'snandatory di ing oil montoiun whichwasstruck downas ahitraryandcapicious, wellaspotential as rcpealof pottions the nassivehealth of carebill. '

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