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GOVERNMENT AFFAIRS

More than three-quarters of the construction performed in the United States is performed by subcontractors. Whether you're a small, family-owned plastering subcontractor working primarily on renovations of historical properties or a multi-million dollar commercial mechanical subcontractor, your work is subject to:

  • General business laws and regulations (e.g., income tax, anti-trust).
  • Laws and regulations specific to the construction industry (e.g., mechanic's lien laws, anti-'bid shopping' laws, prompt pay laws).
  • And the "private law" of the subcontracts that describe subcontractors' performance obligations and allocate risk.

ASA is the united voice dedicated to improving the business environment in the construction industry, representing subcontractors before all branches (executive, legislative, judicial) and levels (federal, state, local) of government, to organizations representing other parts of the construction industry, to the news media, and others.

Fly In

CORPORATE TRANSPARENCY ACT

ASA supports the delay in implementation of the Corporate Transparency Act.

December 26, 2024- the Fifth Circuit merits panel reinstituted the preliminary injunction against the enforcement of the Corporate Transparency Act (CTA); thereby, there is no requirement or deadline to file a company Beneficial Ownership Information (BOI) report pursuant to the CTA.

Companies may still voluntarily file their BOI reports with U.S. Treasury’s FinCEN (financial crimes)Division. However, for the time being, they are not required to comply with the CTA reporting deadlines (neither the original January 1 deadline, nor the revised deadline of January 13). The ruling, however, is still not a final determination of the CTA’s constitutionality.  Instead, it only temporarily halts deadlines while the case continues to proceed.  This could potentially be appealed to the Supreme Court and further action is still required within the lower courts.  All of which could once again change the deadlines and requirements in the future.  Businesses should remain cautious and continue to understand that this recent pause may still only be temporary.

In December 2024, the following has occurred:

  • December 03, 2024:  District Court in Texas suspends the deadlines for the CTA BOI reports.
  • December 23, 2024:  5th Circuit Court of Appeals reinstates the January 1 deadline.
  • December 23, 2024:  FinCEN announces a new deadline of January 13 for the CTA BOI reports.
  • December 26, 2024:  5th Circuit Court of Appeals, on second thought, decides that the suspension of the deadlines is the best course as the lawsuit continues to be litigated.

 

COMPREHENSIVE IMMIGRATION REFORM

The American Subcontractors Association (ASA) supports comprehensive immigration reform that strengthens the nation’s national security interests through thorough and efficient public policy addressing the construction industry’s growing workforce needs to carry out critical infrastructure improvements and meet the demands of the 21st century.

ASA Immigration Priorities

  • Enhancing our National Security
  • Necessity of Federal Government Policy
  • Utilizing Tech Advances to Verify Employment Status
  • Employee Liability of Unauthorized Workers
  • Vicarious Liability in Immigration-Related Employment Matters
  • Increasing Access to H2-B Visa Program
  • Pathway to Citizenship
  • Expand Visa Programs to Relieve Worker Shortages

More detailed information: ASA IMMIGRATION WHITE PAPER

ASA Legislative Priorities for 2025

As the American Subcontractors Association (ASA), a pivotal entity in the construction industry, representing over 2,400 construction subcontractors across the United States, prepares for its 2025 legislative fly-in on Capitol Hill, these are its 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.

Promoting Prompt Payments through Legislative Action

A core issue for the ASA in 2025 is the enforcement of prompt payment to subcontractors and suppliers, especially concerning change orders. In the last Congress, the organization supports 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.

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.  We will continue to support this legislation in 2025.

Reforming Retainage Practices

Another significant focus is the reform of retainage practices. The ASA advocates 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.

Ensuring Fairness in Bid Listing

The ASA supports 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.

Streamlining Permitting Processes

The ASA continues 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.

 

Tax Reform

In advance of large scale tax legislation that will be forthcoming in 2025, ASA supports 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, support for the business tax provisions of Tile II of H.R. 7042 which 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 support 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).

 

Supporting Workforce Development

Workforce development remains 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.

Encouraging Construction Procurement Reform

Lastly, the ASA supports the House Construction Procurement Caucus, focusing on improving construction procurement policies. This caucus serves as a platform for addressing issues that affect the construction industry and ensuring that procurement practices are equitable and efficient.

ASA supports the CONGRESSIONAL CONSTRUCTION PROCUREMENT CAUCUS

Take Action Visit our Legislative Action Center