OSHA Issues Heat Injury and Illness NPRM
On August 30, 2024, OSHA’s proposed rule on heat injury and illness prevention in outdoor and indoor settings was published in the Federal Register, officially starting the comment period.
OSHA’s proposed a rule would require employers to develop programs to protect their employees from heat hazards in both the outdoor and indoor work environments.
The proposed rule…
- Would apply broadly to all employers conducting outdoor and indoor work activities in general industry, construction, maritime and agriculture (where OSHA has jurisdiction).
- Is a programmatic standard that would require employers to evaluate their workplaces and implement controls to mitigate employee exposures though engineering and administrative controls, training, effective communication and other measures.
- Includes initial and high heat triggers at the 80- and 90-degree levels, which would require increasingly stringent control measures to protect employees.
- Includes certain exemptions, including short-duration exposures, emergency response activities, and workplaces that are kept below 80 degrees.
The proposed rule also was the subject of a Small Business Advocacy Review panel in 2023 (see the Heat Injury and Illness SBREFA | Occupational Safety and Health Administration (osha.gov).
Comments on OSHA’s proposed Heat Injury and Illness Prevention rule are due by December 30, 2024. Learn more at www.osha.gov/heat-exposure/rulemaking.
Builder Sentiment Rises as Rates Fall but Affordability Challenges Persist Economics
With mortgage rates declining by more than one-half of a percentage point from early August through mid-September, per Freddie Mac, builder sentiment edged higher this month even as builders continue to grapple with rising costs.
Builder confidence in the market for newly built single-family homes was 41 in September, up two points from a reading of 39 in August, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This breaks a string of four consecutive monthly declines.
The latest HMI survey also revealed that the share of builders cutting prices dropped in September for the first time since April, down one point to 32%. Moreover, the average price reduction was 5%, the first time it has been below 6% since July 2022. Meanwhile, the use of sales incentives fell to 61% in September, down from 64% in August.
Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.
All three HMI indices were up in September. The index charting current sales conditions rose one point to 45, the component measuring sales expectations in the next six months increased four points to 53 and the gauge charting traffic of prospective buyers posted a two-point gain to 27.
Looking at the three-month moving averages for regional HMI scores, the Northeast fell three points to 49, the Midwest edged one-point higher to 40, the South decreased one point to 41 and the West increased two points to 39.
How to Incorporate Renewable Energy Sources into Home Building
Energy efficiency remains one of the most desired components among new and prospective home buyers. In 2020, NAHB surveyed more than 3,000 home buyers, both recent and prospective, on the types of features they prefer to have in their homes, including eco-friendly components and designs, and that still rings true today. Some of the most requested features buyers want to see in home plans are ENERGY STAR-rated windows and appliances, efficient lighting that uses less energy than traditional bulbs, and an ENERGY STAR rating for the whole house.
Integrating renewable energy in homes can have both financial and environmental benefits. Not only do energy-efficient systems decrease the home’s carbon footprint, but materials such as solar panels pay for themselves after about 6 to 10 years. So even though they cost more up-front, they are more cost-effective in the long term.
Any new home construction or home remodel requires a whole-house systems approach, which considers the house as an energy system with interdependent parts, each of which affects the performance of the entire system.
When planning a remodel, first conduct an energy audit to find how the home uses energy in its current state and determine how to cut energy use and cost.
Common strategies to incorporate renewable energy in home building projects include:
- Sizing the electrical panels to accommodate an EV charger,
- Providing a charging outlet on the home,
- Building an all-electric home, and
- Designing homes to eventually only use electricity.
Another important step to implementing renewable energy in home construction is green building certifications. Certifying a project to an above-code, voluntary water efficiency rating system, for example, provides independent confirmation of the water-saving practices that have been installed and validates that the home was built to a higher standard than what code requires.
Solar photovoltaic (PV) systems use panels to convert sunlight to a home’s electrical load. These roof panels are made of individual solar cells to turn sunlight into electricity for the home.
The cost of a PV system depends primarily on square footage, weight, and number and type of panels. Monocrystalline panels are made of silicon wafers from a single crystal and are generally capable of higher efficiencies, while polycrystalline panels comprise cells that are melted together from silicone fragments and often offer a lower price point than the former.
A single-family home requires between 15 and 34 solar panels for full power. The amount of sunlight exposure on the roof can impact the number of panels required. Panels cost anywhere between $2.40 and $3.60 per watt (including installation), so the more energy the PV system needs to produce, the more it will cost. On average, a 6-kilowatt PV system for a single-family home can cost home owners around $12,700.
A water-driven design approach can help enable continued community development and home building throughout the country. Total hydrology planning is a methodology to identify and utilize all water resources on a project site. It uses strategies best suited to the relationship between the climate and site-specific conditions of a project to achieve a balance between a site’s water supply and demand. Such projects are better positioned to be more resilient to drought and storm events and prevent costly destruction.
Water-conserving fixtures such as toilets, showerheads and faucets are among the top green features. Incorporating these and other water-focused strategies such as ENERGY STAR appliances and structural plumbing can help save time and money on materials and labor and can help home owners save on their utility bills.
ConsensusDocs Provide a New Prequalification and Subcontractor Default Prevention Resource Center
Subcontractor defaults pose an urgent and significant risk to the construction industry, with potentially far-reaching consequences. The 2024 AGC/FMI Study revealed that 70% of survey respondents reported an increase in subcontractor distress or defaults compared to the previous year, and nearly half of respondents reported project disruptions due to subcontractor defaults. This underscores the pressing need for effective risk management strategies.
To help manage these risks effectively, ConsensusDocs has created a Prequalification and Subcontractor Default Prevention Resource Center. The resource center provides ConsensusDocs sample standard prequalification statements for subcontractors, constructors/general contractors, design-builders, and design professionals. A wealth of valuable resources, including financial guidelines, articles, webinars, and more are also available for free.
Contract terms play a fundamental role in subcontractor default prevention. The general terms and conditions in ConsensusDocs standard contract documents encourage timely payment. For instance, payment is required within 20 days from applying of payment that is not rejected. Furthermore, retention is eliminated once a project is 50% complete. Since payment flow is the lifeblood of constructors and specialty contractors, it is essential to keep these payment contractual terms in mind.
Prequalification is not just a proactive measure, but a crucial one to reduce risk. Constructors are wise to prequalify not only their direct specialty contractors but also those further down as well as up the contractual chain. Ensuring the ability to pay and adequate project financing is a prudent step construction can take to prequalify their owner clients, who are up the contractual chain. A late-paying or difficult owner client can be the root cause of a troubled project.
Unlike other standard contract documents, ConsensusDocs contracts provide the ability to request financial information before and after the commencement of the project. Significantly, ConsensusDocs is the only publisher of standard documents that offers a balanced way for requiring project financial information from owners to ensure an owner’s ability to pay (ConsensusDocs 290 Guidelines for Owner Financial Questionnaire and ConsensusDocs 290.1 Owner Financial Questionnaire).
Construction Employment Increases in 39 States Between August 2023 and August 2024
Construction employment increased in 39 states in August from a year earlier, while 27 states and the District of Columbia added construction jobs between July and August, according to a new analysis of federal employment data released by the Associated General Contractors of America. Association officials said that tight labor market conditions are making it hard for firms to find enough workers to hire.
Between August 2023 and August 2024, 39 states added construction jobs, 10 states and DC shed jobs, and employment was unchanged in Georgia. Texas added the most construction employees (36,600 jobs or 4.4%), followed by Florida (36,200 jobs, 5.7%), Michigan (15,100 jobs, 7.9%), and Nevada (12,700 jobs, 11.2%). Alaska had the largest percentage gain over 12 months (17.8%, 3,100 jobs), followed by Hawaii (12.4%, 4,700 jobs), Nevada, and Montana (10.1%, 3,700 jobs).
Maryland lost the most construction jobs during the past 12 months (-4,800 jobs, -3.0%), followed by New York (-4,700 jobs, -1.2%), Oregon (-2,400 jobs, -2.1%), Colorado (-2,400 jobs, -1.3%), and Minnesota (-2,000 jobs, -1.5%). The largest percentage loss was in Maine (-4.7%, -1,600 jobs), followed by Vermont (-3.1%, -500 jobs), Maryland, D.C. (-2.7%, -400 jobs), and Oregon.
For the month, industry employment increased in 27 states and DC, declined in 20 states, and was unchanged in Alaska, Kansas and Maine. Texas added the most jobs (8,300 jobs or 1.0%), followed by Virginia (2,300 jobs, 1.0%), Wisconsin (2,300 jobs, 1.6%), and Illinois (2,200 jobs, 0.9%). Wyoming had the largest percentage gain (2.3%, 500 jobs), followed by West Virginia (1.8%, 600 jobs), Wisconsin, and Montana (1.5%, 600 jobs).
California lost the most construction jobs from July to August (-3,300 jobs or -0.4%), followed by Tennessee (-2,500 jobs, -1.6%), New Jersey (-1,600 jobs, -1.0%), and Minnesota (-900 jobs, -0.7%). Tennessee lost the highest percentage of jobs for the month (-1.6%, -2,500 jobs), followed by New Mexico (-1.1%, -600 jobs), New Jersey, and Rhode Island (-0.9%, -200 jobs).
Association officials urged Congress to boost funding for construction workforce training and education programs to help address workforce shortages that are likely undermining employment growth in the sector. The two best opportunities for Congress to boost funding are in the reauthorization of the Workforce Innovation and Opportunity Act that funds workforce training programs and the Carl. D. Perkins Technical Career and Technical Education Act that funds in-school career and technical education programs.
