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ASA Government Relations 2024 Recap

As we enter the New Year, the American Subcontractor Association (ASA) Government Relations Team wanted to briefly update you on our legislative and regulatory successes. Though this year has proven to be challenging, we offer thanks to our Government Relations Committee (GRC) for their tireless efforts in advocating for our members and industry as we worked to address your legislative and regulatory priorities.

ASA is a pivotal entity in the construction industry, representing over 2,400 construction subcontractors across the United States.  The following were our 2024 legislative priorities aimed to address critical issues that impact subcontractors and by extension, the broader construction sector, who play an essential role in construction projects.  On June 12, 2024, these priorities were specifically highlighted during our legislative-fly on Capitol Hill in which our membership participated in 50 congressional meetings (27 Senate Meetings including Senate Small Business Committee Staff) and (23 House Meetings including House Small Business Committee Majority/Minority staff; House Transportation and Infrastructure Water Resources’ Subcommittee Staff).

  1. Promoting Prompt Payments through Legislative Action - A core issue for the ASA in 2024 was the enforcement of prompt payment to subcontractors and suppliers, especially concerning change orders. The organization supported the "Small Business Payment for Performance Act of 2023" (H.R. 2726), which mandates quick payment for contractors following change orders. Timely payments are vital to maintaining cash flow for subcontractors, ensuring they can meet their financial obligations and maintain stability in their operations.
  2. Enhancing P3 Bonding Requirements - ASA championed H.R. 1740, which seeks to affirm that existing payment and performance security requirements extend to infrastructure projects financed through the Water Infrastructure Finance and Innovation Act (WIFIA), including Public-Private Partnerships (P3s). This legislation is crucial for surety professionals as it upholds stringent bonding requirements, ensuring that all parties are adequately protected in large-scale infrastructure projects.
  3. Reforming Retainage Practices - Another significant focus was the reform of retainage practices. The ASA advocated for reducing the maximum retainage rate from 10% to 5%. High retainage rates can strain subcontractors who must front the cost of labor and materials, impacting their liquidity and financial health. This change would alleviate financial pressure and improve the economic conditions for subcontractors.
  4. Ensuring Fairness in Bid Listing - The ASA supported the "Stop Unfair Bid Shopping Act" (SUBS Act), which mandates that general contractors on federal construction contracts valued at over $1.5 million list the subcontractors for work valued at more than $100,000. This act aims to curb bid shopping, promoting fairness and transparency in the procurement process, thereby protecting subcontractors from being undercut after bidding.
  5. Streamlining Permitting Processes - The ASA continued to advocate for streamlining project review and approval processes through the "One Federal Decision" framework and other enhancements under the Infrastructure Investment Jobs Act (IIJA). Simplifying these processes can reduce delays and costs, benefiting the entire construction timeline and reducing risks associated with surety bonds.
  6. Tax Reform - In advance of large scale tax legislation that will be forthcoming in 2025, ASA supported the following provisions:
    1. the repeal of the Corporate Transparency Act or, at the least, support modifications that ease the regulatory compliance burdens on small business;
    2. passage of the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). Specifically, we supported the business tax provisions of Tile II of H.R. 7042 which would provide for R&D benefits as well as extended bonus depreciation with increased limits on business expensing for certain assets; and
    3. the tax working groups of Congress as they prepare for the expiring provisions of the Tax Cuts and Jobs Act of 2017 (TCJA). Specifically, we supported the renewal of the Qualified Business Income Deduction (199A) and all extension of the provisions related to business succession planning (e.g., increased estate and gift tax limitations).
  7. Supporting Workforce Development - Workforce development remained a priority, with the ASA supporting apprenticeship funding opportunities and opposing the misclassification of workers as independent contractors. Strengthening the workforce is essential for the growth and sustainability of the construction industry.
  8. Encouraging Construction Procurement Reform - Lastly, the ASA supported the House Construction Procurement Caucus, focusing on improving construction procurement policies. This caucus served as a platform for addressing issues that affect the construction industry and ensuring that procurement practices are equitable and efficient.

These legislative priorities not only address the immediate needs of subcontractors. By supporting these initiatives, the ASA helped create a more predictable and fair business environment for all stakeholders in the construction industry.

Beyond our legislative priorities, ASA offered affirmative comments on the Department of Defense (DOD), the General Services Administration (GSA) and the National Aeronautics and Space Administration (NASA)’s proposal to amend the Federal Acquisition Regulation (FAR) to implement a section of the Construction Consensus Improvement Act of 2021 that prohibits the use of reverse auctions for certain construction services, which ASA championed.

Additionally, we addressed the following regulatory issues proposed by the Department of Labor regarding Project Labor Agreements, Independent Contractor, Davis Bacon, Overtime, and Joint Employer.  We worked with the Construction Industry Safety Coalition on comments regarding: Leading Indicators (training, physical and mental well-being, safety training audits), Walk Around Rule (any individual could occupy OSHA inspectors on facility walkaround), Blood Lead Levels, Process Safety Management for Hazardous Chemicals, Severe Violator Enforcement, Personal Protective Equipment, and Heat and Injury Illness Prevention.  Finally, on the MSHA (Mine Safety and Health Administration) Silica Proposal, we proposed that there should be one, similar set of rules and exposure limits for employers that do work in both OSHA and MSHA locations.

ASA Government Relations Director Mike Oscar continued his chapter visits across the country. Mike visited these chapters to provide our members with a federal legislative, regulatory, and political update. Each of these chapter visits provided a tremendous opportunity to brief members about ASA’s efforts to advance subcontracting issues nation-wide, while also highlighting individual chapters. In 2024, Mike met with the following chapters:

  • ASA Central PA
  • ASA North Texas
  • ASA of California
  • ASA of Houston
  • ASA Washington
  • DC Metro
  • ASA of Arizona
  • ASA of Colorado
  • ASA of South Carolina

I would like to thank our Attorneys’ Council for their continued contribution to ASA and the GRC as they provided numerous Contractor’s Compass articles, webinars, and podcasts.

The ASA Government Relations Team looks forward to 2025, where we will build on the momentum of this year’s advocacy achievements. We want to thank you for your commitment to our initiatives and your passion propelled many of our 2024 legislative accomplishments.  Our best wishes to you for health and happiness in the New Year!

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