March 15, 2024

GOVERNMENT AFFAIRS NEWS

Worker Safety and Underground Utility Bill to Receive Hearing on Tuesday, Independent Contractor Test in Construction Keeps Moving

AGC-backed House File 2717, the Worker Safety and Underground Utility Locating bill, will be heard on Tuesday, March 19 at 8:30 AM. The hearing will take place in the Basement Hearing Room in the State Office Building. The bill will provide greater accuracy of future utility installation locations and repairs, better tracking of complaints and accountability measures, and improved timing of locate requests and more active participation of facility owners in preconstruction meetings. Please respond to Laura Ziegler if you plan on attending and she will follow up with logistics.

Legislation that establishes a new multi-part independent contractor test for building construction and improvement services was hearing in multiple committees this week. The new multi-part test increases the current nine-factor test to 14 requirements to identify and classify as an independent contractor operating in construction and improvement services. The legislation also provides for additional penalties and enforcement of misclassification of employees and construction employees, including individual and successor liability.

House File 4444 was heard and passed in the House State Government and Judiciary committees. An amendment to address some initial concerns were adopted in committee. The bill’s companion in the Senate, SF 4483, will be heard in the Judiciary committee on Monday. Attorney General Keith Ellison, Department of Labor and Industry Commissioner Nicole Blissenbach, and the legislative authors held a press conference a couple weeks ago to advocate for the bill.

AGC government affairs staff have been in discussions with legislators and the Department of Labor and Industry, and have testified in all of the committees stops.

We continue to engage on this issue, relay significant concerns, and represent contractor interests. This proposal is very complex, and we welcome your feedback and examples of how this would impact your business.

Committees next week will be packed as the first committee deadline on Friday at 5 p.m. approaches.

AGC Legislative Committee will meet next Friday morning. Please contact AGC Director of Government Affairs Laura Ziegler if you’d like to join the Legislative Committee meeting.

LABOR & LEGAL NEWS

AGC Form Contracts Sign-In Problem Solved

A few users of AGC-MN’s Suite Six Construction Form Contracts have experienced an error when trying to log in. We have been working with Microsoft on this problem and this week figured out (a) the problem lay in the credentialling of certain computers and (b) a workaround was devised. Microsoft successfully resolved the problem for two users in a virtual meeting. The steps to the cure are posted here.

If you don’t have a copy of the contracts, you should! They are free to members (and available to nonmembers for a license fee, including a discount if for members of participating sister associations) and available for download here. They are great to use, great to improve or challenge your existing contracts, and a great reference for ideas how to structure your deal differently.

These contracts are updated every Fall by our committee of generals, subcontractors, and lawyers to review compliance with the law and needed clarifications. Watch for a mid-year update this Summer if the Legislature continues on its path.

Union Wage Increases Table

This year’s wage increases are funky because of the new earned safe and sick time legislation and alternative Worker Wellness Program. To help, we created and posted a chart showing the increases for a class of workers under the collective bargaining agreement (some trades’ increases are by percentage and so vary by class) and the WWP addition (will not vary by class), if any.

Members can download the table here. (Don't have login credentials? Renee can help you.)

DIVERSITY, EQUITY, & INCLUSION (DEI) NEWS

C.S. McCrossan Annual Employee Orientation

Yolanda presented on Mental Health and Suicide Prevention at C.S. McCrossan's Annual Employee Spring Orientation.

AWC March Member Mingle

AWC’s March Member Mingle was hosted by Mortenson, with over 100 participants in attendance!

GENERAL NEWS

Open for Comment: Proposed Updates to Petroleum Tax Refunds for Power Take-Off Units and Auxiliary Engines

This week, the MN Department of Revenue (MN DOR) distributed proposed updates to Minnesota Rules, Part 8125.1301, which governs petroleum tax refunds for power take-off units (“PTOs”) and auxiliary engines. The Rule has not been updated since 1998, and the Department is proposing changes to align the Rule with current terminology and current industry and Department practices.

MN DOR initiated the rulemaking by publishing a Request for Comments in the State Register. In essence, the Request for Comments asks the public to comment on the Department’s proposed changes to the rule, which are found on the Department of Revenue rulemaking webpage . After making appropriate changes to our rule update proposal based on comments received, MN DOR will publish a new proposed rule update for another round of public comment in the “Notice of Intent to Adopt” phase of the rulemaking.

AGC members with an interest are encouraged to review the proposed changes. If you are submitting comments, please communicate with Laura Ziegler regarding your input.

Ransomware: The Alarming Bullseye on the Construction Industry

In the evolving digital era, the construction industry may seem like a low-tech domain, but this perception is incorrect; the sector faces a rising threat of ransomware attacks. Construction witnessed the highest count of ransomware incidents from January 2022 to January 2023. Uncover the risks, dispel the illusion of low-tech security, and explore crucial cybersecurity measures in this article. Click here to read more

When Founder and CEO, Sam Bloedow started Thriveon in 2002, it was born from a love of technology and the needs of small to midsize companies that weren’t being met by their current IT service. Fascinated by the way businesses could leverage technology to enable growth, Sam founded Thriveon to help businesses find success through an approach that proactively eliminates IT risk and supports growth.

Scholarship Application is Open!

The application form for 2024-2025 AGC of Minnesota Foundation scholarships is now open. Please share with any young people pursuing a degree in the construction industry!

Executive Circle Focuses on People

The 2024 Executive Circle cohort met this month to discuss PEOPLE:

Attracting the right people
Creating an ideal candidate profile
Growing, developing and engaging talent
Creating your ideal culture
Holding crucial conversations

Next month: COMMUNICATION

Notice of Early Blatnik Work for Industry

On behalf of the MnDOT/WisDOT Blatnik project team, MnDOT will be posting an RFP for technical work needed to gain pre-letting information for the future Blatnik reconstruction project. This work includes a pile load test program and site investigations at proposed new pier locations. It is anticipated this work will be posted on the MnDOT Professional Technical Consultant Services website in April.

The purpose of this notice is to notify the industry of the upcoming RFP for work planning purposes. It is anticipated another update with the actual link to the RFP when it is posted in April. In addition, this note has been placed on the Blatnik project website, under the Industry tab.

MnDOT Chief Council has reviewed the work in this contract and believes it is consistent with “low level” work as defined by sub note ix of the Design-Build Conflict of Interest policy here.

The work is consistent with “drilling and testing associated with geotechnical or environmental investigations where the firm is merely providing the results of the investigation”. The results of the load test and grading work (including cultural or other environmental/contamination discoveries) will be made available to the industry shortly after completion. Therefore, any contractor or consultant working on this effort will not be conflicted from bidding on the large Blatnik Design-Build project.

Spring load restrictions end in Metro frost zone

The Minnesota Department of Transportation will end spring load restrictions in the North frost zone Monday, March 18.

Seasonal load limit zones and restricted routes can be found on the MnDOT load limits map. Start and end dates and other load limit information are shown at mndot.gov/loadlimits.

Constructability Review Request:

Nodine Hill Project

MnDOT is preparing plans for a project on Interstate 90 from 0.69 miles west of Winona County State Aid Highway (CSAH 12) to US Hwy 61/Dakota. The project is currently scheduled to be let as a standard Design-Bid-Build contract in November of 2025 with an anticipated construction start date of April 2026.

Project Information Here

MnDOT is asking potential contractors to assist with evaluating construction means, methods, staging, and risks to constructing this proposed project while minimizing impacts to RPBBs and their habitat. MnDOT requests one-on-one meetings with potential construction contractors to review the planned work and provide feedback. The meetings are expected to last approximately 60 minutes.

March 18-28, 2024 has been selected as the Department’s desired window for constructability reviews with several dates and times available within this window; however, the project team is flexible if the previous or following week would work better with contractors’ schedules.Please contact Tom Austin, Project Manager, to schedule a meeting.

EVENTS & NETWORKING

For Signatory Contractors:

Minnesota Construction Crew Hiring Event

The Minnesota Construction Crew is having their 10th annual hiring event! This year’s event will be held on May 14 at The North Central States Regional Council of Carpenters (710 Olive Street, Saint Paul, MN 55130). The event has a $225 table fee and net proceeds go to Construct Tomorrow.

Registration is open for all of the following events.

Secure your sponsorship or registration before events are sold out!

Networking Event - April 11

(Coyote Moon Grille | St. Cloud)

Join the AGC Board of Directors and your industry colleagues for some informal networking!

Golf Tournament - August 2

(Keller Golf Course | Maplewood)

SOLD OUT for golfers, but sponsorship opportunities are still available!

St. Paul Saints Game - August 7

(CHS Field | St. Paul)

Join AGC and MBEX members for an afternoon of Minnesota Twins AAA baseball against the Columbus Clippers!

Sporting Clays Fundraiser - Sept 11

(Minnesota Horse & Hunt Club | Prior Lake)

Register your team of 5 to join us at the 25th Annual Sporting Clays Fundraiser to benefit the AGC of Minnesota Foundation!

Holiday Reception - December 4

(Minneapolis Event Center)

Join your industry colleagues to celebrate another great year together!

AGC Honors 2025 - February 18

(317 on Rice Park Event Center | St. Paul)

Join us as we honor award recipients This annual event brings together industry leaders and change-makers as we celebrate stellar work over the past year as well as over the past decades.