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Pentagon is boosting its performance with the use of a novel procurement approach initiated by an innovative program manager, Walker Lee Evey. The multi-staged rehabilitation of Pentagon's 56-year-old building is the testing ground for the new procurement method, which does not involved bidding. Instead, 'best-value selection' process is used to choose contractors for the construction project. Levey hopes that the new approach will help eliminate the problems often associated with using the traditional design-bid-build approach.

The series of seismic activities which devastated Turkey on Aug 17, 1999 proved disastrous, leaving hundred thousands of residents virtually homeless. Problems are further aggravated by ensuing tremors, which made relief operations and reconstruction projects more difficult to handle. According to reports, the severity of the damage could have been lessened if more stringent building practices have been implemented and more efficient emergency preparedness programs have been created.

Bovis Construction Corp turned to Restoration East Inc (REI) to tackle a delicate project of demolishing and rebuilding a parking structure in the same building that houses the National Institutes of Health's research and clinical hospital. Because of vibration concerns, REI was the perfect subcontractor for the job since it specializes in using hydrodemolition robots. REI also had to customize its demolition robots for the sensitive work.

The Senate and the House are considering proposals for the establishment of a tax cut program that would be funded from projected budget surpluses. In the Senate, the Republicans have proposed a 10-year, $792-billion tax break package while the Democrats have come up with a more modest $295 billion package. In the House, the Republicans have come up with a 10-year, $864-billion tax cut package while the Democrats have argued for a lower figure. Pres Clinton, however, has threatened to veto any tax cut program since it is possible that the projected budget surpluses may not materialize.

The US Congress has been struggling to finalize the Dept of Transportation spending bill for fiscal year 2000, as members failed to reach a consensus. The Senate refused to vote for the transportation budget issued by the House of Representatives after the latter trimmed down $5.9 billion from the Federal Aviation Administration's allocation. The $50.7 billion budget proposal seeks to allocate some $29 billion for highway programs and $300 million for the Airport Improvement Program.

Proponents of Superfund reform are counting on a proposal that considers only minor changes in the legislation even as a number of other bills await deliberation. The measure, introduced by Senate Environment and Public Works Committee Chmn John H. Chafee and Superfund subcommittee Chmn Robert C. Smith, deals with four key issues, namely, state programs, brownfields cleanup, program funding and fair share liability exemptions. Sen Frank R. Lautenberg also proposed a separate plan whose primary focus is brownfields cleanup. Engineers and contractors expressed concerns about the Chafee-Smith bill for ostensibly omitting key items.

The House Appropriations Committee has approved a $12.9 billion emergency funding bill that includes an $831 million provision for military construction related to the Balkans conflict. The emergency spending bill, which is expected to be passed by both the House and the Senate, allots $295.8 million to the Army for its facilities in Germany, $166.3 million to the Navy for its facilities in Greece, Italy and Southwest Asia, $333.4 million to the Air Force for its facilities in the UK, Turkey, Portugal, Italy and Germany, and $35.5 million for defense-wide military construction.

Unidentified sources have reported that the federal government could spend up to $70 million to build a tent city to house about 20,000 Kosovar refugees at an as yet undetermined site in Albania. Three sites are being considered, according to some US officials. The nation's objective is to settle an initial 2,500 people in tents at the Albania site within 10 days. About 600,000 people have fled Kosovo into three neighboring countries while another 20,000 have found temporary shelter in 15 other countries.

The Clinton administration has unveiled its restructuring plan for the electric utility sector. The plan, which was announced by Energy Sec Bill Richardson on Apr 15, 1999, aims to reduce electricity rates by encouraging competition among electric utilities. The administration's plan, however, has drawn much criticism from Republicans, who say the plan involves more government interference in the market. Industry observers have made similar comments, noting that the plan adds needless new layers of regulation. Richardson, nonetheless, hopes the plan will be approved by Congress.

The AFL-CIO's Building and Construction Trades Dept (BCTD) has brought together a coalition of 15 construction unions to work on a program that would revise the rules governing labor agreements for public works projects. According to the BCTD, the coalition will form a labor-management Construction Consortium Trust that will establish uniform work rules for various project labor agreements. The BCTD is also raising its profile on Capitol Hill and has announced its intention to keep members of Congress regularly informed on issues that are important to labor organizations.

Aviation-related issues are expected to top the agenda of Congress when it returns from a spring recess in Apr 1999. Although the Kosovo crisis may receive much of the lawmakers' attention and many bills may be sidetracked, the Republican-controlled Congress is predicted to try to complete appropriation bills. Some of the measures to be tackled by lawmakers when session resumes include the reauthorization of the Airport Improvement Program, reform of the Davis-Bacon Act and reform of Superfund.

Several contractors and surety groups have agreed on proposed changes to the 1935 Miller Act that will increase bond payments for federal contracts. Prior to the agreement to work for such amendments, the law stipulated a $2.5 million cap for federal projects regardless of contract amount. Subcontractor and supplier coverage was also limited under current law. Rep. Carolyn Maloney is supporting the contractors and is expected to work for reform legislation for the act.

The federal budget surplus has encouraged legislators to propose a number of tax cuts that will benefit the construction industry. Among these are bills by Representatives Christopher Cox and Jon Kyl calling for the scrapping of the estate tax, Representative Jennifer Dunn and John Tanner's bill to phase-out the estate tax by reducing rates by 5% annually and Representative Bill Archer's proposal to ease arbitrage rules for bonds issued to finance school building to promote school construction.

The first extensive exterior repair of the Washington Monument since the 1930s is due to begin soon. The restoration will involve access scaffold from top to bottom of the edifice to avoid damaging the obelisk. The scaffold, which permits visitors to the landmark during most of the 18-month restoration, was fitted together one piece at a time. Stone restoration is expected to begin in Feb 1999 after the installation of 'designer' fabric that would enhance the monument's appearance during the project.

The election of a House Speaker is on top of the agenda of House Republicans as the 106th Congress opens on Jan 6, 1999. The leading contender to the post to be vacated by Speaker Newt Gingrich is Rep J Dennis Hastert of Illinois, who has been a member of the House since 1987 and chief deputy majority whip since 1995. A former high school teacher and wrestling coach, he first gained notice when he chaired a health care task force in 1993. Whoever becomes Gingrich's successor will have as an initial task the setting of the House agenda, although lobbyists do not expect any significant legislation to make any headway during the first session.

The US, several lending agencies and the international community have pledged over $1.5 million in financial aid to Central American nations that were ravaged by Hurricane Mitch. Majority of the $1.5 billion aid and the previously approved funds of $6.3 billion will be used for the reconstruction of damaged infrastructures such as roadways, bridges and power and water utilities. The US contributed $300 million and promised to provide more funds.

The EPA has implemented the first two rules aimed at tightening drinking water safety standards on Dec 3, 1998. These are the Disinfectant and Disinfection Byproduct rule and Interim Enhanced Surface Water Treatment Rule. The disinfection and disinfectant rule affects community water systems and nontransient, noncommunity systems. It sets a maximum residual level for chlorine and maximum contaminant level for four trihalomethanes. On the other hand, the enhanced surface water treatment rule covers systems serving at least 10,000 persons. It sets higher standards for turbidity performance and requires filter monitoring to prevent cryptosporidum contamination.

Florida Rep Bill Young is rumored to take over as head of the House Appropriations Committee after completion of Bob Livingston's appointment as House Speaker. Young has little experience in construction policy formulation but he supports key transportation and environmental measures being discussed in political circles. The panel will be responsible for the Corps of Engineers' spending policies.

Political wranglings and a presidential scandal prevented the 105th Congress from passing a number of key legislation, including the reform of the Miller Act and Superfund and the electric utility deregulation. But Congress was able to pass a number of legislations that are important to the construction industry, including increasing allocations for the abandoned mines land reclamation program and the Airport Improvement Program, as well as the omnibus spending bill which contains funds for many infrastructure projects. Most important is the Transportation Equity Act for the 21st Century which allots $217 bil over six years for transportation projects.

The construction industry is eagerly awaiting the results of the November 3, 1998 state ballots, where voters decide on state appropriations for public construction projects. Some of the critical areas for construction votes are in California, Washington, Nevada, Massachusetts, Alabama and Ohio and the issues concern appropriations for school and road construction as well outsourcing of public utilities such as sewarage and water treatment.

The Army Corps of Engineers is again planning on revising key provisions contained in the revised Nationwide Permit No. 26. One of the sensitive provisions that is up for revision is the exclusion of some wetland development permits in the 100-year floodplain program that would essentially negate the need for the nationwide permitting program. The revisions were planned to make the program sensitive to key provisions in the Clean Water Act.

A number of contractors and investors working on international construction projects in Brazil are still upbeat about the Brazilian construction industry despite the increase in interest rates. The contractors believe that Brazil will continue to support projects in power and telecommunications, as well as high-profile public works. Contractor confidence is likely to be increased as the Brazilian government is working on a package of economic measures to stabilize the economy. The country is also set to receive aid packages from the World Bank and the International Monetary Fund.

Organized labor and nonunion contractors are increasing their voter education efforts to push for the election of Congressional representatives which will represent their platforms. The Building and Construction Trades Dept of the AFL-CIO has launched a voter registration and education program among members hoping to sway the result of a low-voter turnout. The union has earmarked $500,000 for voter education. The Associated Builders and Contractors organization has earmarked $1 mil for its campaign donation and plans to raise an additional 100,000 for campaigns.

The deadline for the Laborers' International Union of North America to rid themselves of organized crime looms near and outcomes may determine whether or not the union will be placed under government receivership. Union officials claim that they have made significant progress as they have oustered 189 people from the organization. Union officials also claim that the reforms will continue long after the case because they have become part of the constitution.

The $80 billion tax cut bill approved by the House Ways and Means Committee has bright prospects of being passed because there are provisions that are traditionally important to democrats. The bill's provisions include the acceleration of the $1 mil estate tax credit, the relaxation of arbitrage rules for school construction and an increase in the annual cap on private activity, tax-exempt bond volume. Pres Bill Clinton earlier threatened to veto the bill but legislators are hoping that he will not do so in an election year.

The highly-damaging report made by independent counsel Kenneth Starr that lists possible grounds for impeaching President Clinton has impeded the passing of important bills. The report has caught the attention of everybody with its lurid details of Pres Clinton and Monica Lewinsky's sexual encounters. About 13 fiscal 1999 appropriations bills, which are expected to be enacted by Oct 1, 1998, have already been delayed.

The construction industry and the environmental movement is mounting pressure against the passage of the US Army Corps of Engineers' proposed wetlands development permits. The construction industry maintains that the proposal would place limits on the entire industry and disrupt ongoing constriction projects. Environmentalists meanwhile contend that the proposal makes it easier for developers to fill wetlands.

Construction industry observers believe that only the infrastructure spending of the Federal Aviation Administration (FAA) has a decent chance of being approved by the 105th Congress. Observers also believe that the appropriations for the Dept. of Transportation, energy and water are likely to be approved into law. The Senate has already deliberated and approved the some of the appropriations for the FAA, since a non-approval of the FAA appropriations is likely to halt the operation of the agency. Water and energy appropriations were also seen a likely to pass due to political considerations.

The Pentagon's Military Housing Privatization Initiative is not likely to bring enormous benefits to its constituents, according to a study released by the Government Accounting Office. According to the report, the project would not yield the expected $42 million savings, citing the initiative's slow start. The program attempts to provide direct loans, loan guarantees and other financial incentives to private construction and real estate companies, in order to promote their interest over military housing projects.

Members of the Senate and House of Representatives are struggling to draft the final provisions of 13 spending bills for 1999 due to time constraints.The Upper House issued 11 appropriations bills before a recess was called in August, while the Congress passed 11. Some of these bills are not likely to be approved, as Pres Bill Clinton threatens to veto them. One of the bills that gained industry support was the proposal to increase the allocation of Clean Water State Revolving Fund Loan Program to $1.4 billion

The committee tasked by the Labor Dept to review the Occupational Safety and Health Administration's (OSHA) steel erection standards is about to conclude its mission four years after it was formed in Jun 1994. The panel took 18 months to negotiate with a cross section of the construction but OSHA staff members another two years drafting a preamble to the proposed rule and performing economic and risk analyses. The National Erectors Assn charged that OSHA was holding negotiated rule-making hostage due to the delays. Marthe Kinte, OSHA's director of regulatory analysis, said the review has been a long process which started only after the text of the rule had been finished.

The Alabama Circuit Court dismissed the case filed by contractor BE&K against Carpenters Union for the riots allegedly instigated by the union which led to millions of dollars of damage. BE&K is a nonunion contractor that was the prime contractor on the $535 mil paper mill project of the Boise Cascade Corp. The riot erupted at BE&K's contractors camp at the job site. BE&K officials are planning to appeal the decision, having won several union-instigate riot cases.

Robert J. Pleasure as the new executive director of the Center to Protect Workers' Rights plans to broaden the center's training and education programs with emphasis on economic research. The center is the research unit of the Building and Construction Trades Department. Pleasure, a lawyer by profession, is the former education and training programs assistant of AFL-CIO President John Sweeney. Pleasure was also general counsel of the Mine Safety and Health Review Commission. The center will continue focusing its services on health and safety research with on-the-job applications.

Political observers in the construction industry noted mixed successes in appropriations for key infrastructure projects for the fiscal year 1999. Congress won many of the 'appropriations war' waged by the Clinton Administration, including funding for military housing programs and the Army Corps of Engineers' programs. Much of the appropriations for both programs were above those proposed by the administration, but were much lower than 1998 budgets.

The Court of Appeals for the District of Columbia Circuit has issued a ruling against the Tulloch rule that requires regional contractors to obtain additional permits for wetlands draining. The court ruling has been hailed by construction associations as a victory for the construction industry. A spokesperson for the Environmental Protection Agency and the Corps of Engineers says the two agencies are studying whether or not to elevate it to the Supreme Court.

A decision that favors the Washington state in its expected lawsuit against the Department of Energy (DoE) for more funding to clean up the Hanford site in Richmond, VA will likely derail the DoE's environmental management program. Officials at Bechtel Environment Inc in Washington DC believe stable funding is necessary to redevelop contaminated sites. Environmental Protection Agency officials, meanwhile, predicts that an estimated $1.7 bil is needed every year to finance environmental cleanups.

Several federal contractors were surprised with the Armed Services Board of Contract Appeals ruling on overhead costs. The ruling states that without direct evidence, federal contractors cannot instantly charge the government for increased costs when change orders increased the amount of work performed by contractors. The ruling also states that contractors are not allowed to change methods of billing, depending on whether a change order lengthens the time of performance. However, the ruling allows contractors to bill the government at a daily rate for jobsite overhead.

The General Accounting Office's (GAO) report on project labor agreements (PLAs) has failed to clear issues regarding the use of PLAs for all government construction. Senate and House leaders are opposing the use of PLAs due to fears that the federal government may meddle in labor management relations. The GAO report further reveal that contract comparisons between federal construction projects with PLAs and those without PLAs would be difficult.

US construction companies in India will have to look for other sources for financial assistance as the US instituted sanctions on India. The US instituted sanctions are due to India's direct violation of the Nuclear Non-proliferation Treaty by conducting nuclear tests on May 11 and 13, 1998 without prior announcement of nuclear capabilities. The sanctions would withhold all funding from any US government agencies or departments. US banks are also forbidden to render any loan or credit to the Indian government and any of its agencies.

Campaign finance reform legislation has resurfaced through a petition drive that shows that the idea had numerous supporters on both sides. Legislators and construction groups maintain however, that the increasing and steady influx of money will not be stemmed by the bill even if it is passed. In this light, the Federal Election Commission reports that the 1,037 senatorial and congressional candidates have been able to raise $232.9 million in 1997 compared to $184.9 million in 1995.

The Clinton administration is offering labor unions other gifts in light of the administration's failure to blacklist firms with shady labor practices. The administration is proposing that the projects of the Department of Transportation will 'aggressively pursue opportunities to use unionized companies and that Pres Clinton plans to nominate Laurence J. Cohen to the position of general counsel for the National Labor Relations Board.

AFL-CIO's Building and Construction Trades Dept (BCTD) president Robert A Georgine informed union delegates that the department will have an amnesty program in its efforts to boost membership. According to Georgine, the amnesty plan will enable local unions to return to their councils and pay delinquent per capital dues of not more than one year. Growing union membership would also strengthen BCTD's priority-voter education and voter registration.

The Environmental Protection Agency reports that the National Rural Water Association mispent roughly $2.3 of federal grant money over five years to sustain its aggressove lobbying activities. The money was allocated for aiding state water associations to abide by federal programs which include the Safe Drinking Water Act. Federal law deters recipients of federal grants and contracts from utilizing the funds for lobbying activities.

Central Sprinkler Corp has been ordered by the Consumer Product Safety (CPSC) Commission to recall all its Omega line of sprinkler heads for alleged defects that pose a fire hazard to buildings using them. The CPSC is not satisfied with the company's efforts with the General Services Administration to replace about 26,000 of its sprinkler heads in 81 federal buildings or with the company's efforts to replace or repair about 400,000 units through a $17.8 million program.

The Environmental Protection Agency's proposal to enforce stricter rules under its Clean Water Act is expected to create a demand for animal waste control facilities in farms. The project is in line with the Clinton administration's Clean Water Initiative which focuses on nitrogen and phosphorous waste controls. The hog and dairy cow sectors are expected to be affected, since the wet manure they produce require separation and additional facilities.

President Bill Clinton's proposal for a new clean water initiative is expected to receive heavy opposition from Congress due to questions about its funding. The plan, which requires some $2.3 billion over a period of five years, calls for the limitation of nitrogen and phosphorous nutrients by the year 2000 and requires a net increase of 100,000 wetlands by the year 2005. Detractors believe that the plan would use up finances for state revolving funds intended for drinking and wastewater projects.

The Labor Department's newly appointed Occupational Safety and Health assistant secretary Charles N. Jeffress will initiate new safety programs for the construction industry. The plan, which will focus on improving working conditions in hazardous work sites, is sourced from the Cooperative Compliance Program of the government agency. The plan received harsh criticism from the construction groups such as the National Association of Manufacturers since they perceived it as an enforced standard rather than a voluntary program.

The proposed new regulations of the Army Corps of Engineers on federal wetland permits have drawn criticism from various sectors including the construction industry and the Environmental Protection Agency (EPA) despite revisions. The former group believes that the new plan would unfairly restrict their development projects for small portions of land while the EPA thinks the new regulations would give excessive freedom to firms wishing to develop malls and commercial establishments.

Republican leaders in the House and the Senate may work on a tax bill that reduces the burden of estate tax. Contractors, on the other hand, consider the estate tax reform as a major tax issue. They favor the repeal of the estate tax but regards tax relief as adequate. The estate tax sometimes serves as a barrier for contractors to maintain family business enterprises in the control of the family. Contractors also suggest a return to the cash basis for accounting because it is cheaper.

The Washington Opera Company has decided not to continue its plan of converting the historic department store building of Woodward and Lothrop in downtown Washington, D.C. into a new opera house. The company abandoned its plans due to concerns over a nearby subway route which it believed would cause the structure to collapse. The company has opted for a new plan which would completely redesign the building from the ground up and place it on a vibration isolation platform to prevent collapse.