Newsline

Subcontractor Scores Inspire New Association Campaign

March 26, 2007
/ Print / Reprints /
ShareMore
/ Text Size+

ALEXANDRIA, Va. - The American Subcontractors Association’s (ASA’s) report on “The Policy Environment in the States” awarded New Mexico the highest ranking (69 out of 100) for overall public policies that affect construction subcontractors. The annual report scores each state in policy areas such as those that discourage bid shopping and others that encourage prompt payment. The association then assigns each state an overall score and grade. New Mexico dominated ASA’s state ranking for a third year in a row.

“Every state has a long way to go to achieve a supportive policy environment for subcontractors, but New Mexico remains the leader,” said 2006-07 ASA President Stephen Rohrbach, CPC, president of F. A. Rohrbach Inc., Allentown, Pa. “Some states showed modest policy gains for subcontractors in 2006, but no state came close to dethroning New Mexico from its place as the front runner.”

Oklahoma showed the greatest overall improvement in 2006, moving up 15 spots from 34 to 19. A sweeping indemnity reform bill (S.B. 324), signed into law Nov. 1, 2006, caused the increase. The law prohibits hold-harmless terms and “additional insured” requirements in construction contracts from indemnifying parties against liability for personal injury or damage that arises out of their own negligence or fault.

ASA calculated that, aside from New Mexico, every other state and the District of Columbia had a failing grade, or overall score of 60 points or less out of 100. The grades were calculated by scoring seven key state public policy areas, then combining the points for a final score and a final grade for each state. Those seven policy areas were prompt payment protections, treatment of pay-if-paid clauses, mechanic’s lien protections, payment bond protections, retainage limitations, anti-indemnity protections (including limits on “additional insured” endorsements), and anti-bid-shopping measures. The scoring took into account laws and judicial decisions.

The association said it is launching a campaign to warn subcontractors of deficits in their state laws, provide advocacy information to help change laws, and educate subcontractors about the need to remain vigilant when negotiating contracts in a harsh public policy environment. For more information, visit www.asaonline.com.

Publication date: 03/26/2007

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 Energy Efficiency Forum

Highlights from the 25th annual Energy Efficiency Forum in Washington, D.C.

Podcasts

NEWSMakers: Joseph Groh

Joseph Groh, an industry veteran boasting 35 years of HVAC experience, discusses the 2008 bicycle accident that cut his career tragically short, and how the Joseph S. Groh Foundation is his way of giving back to the construction trade. Posted on Aug. 22.

More Podcasts

ACHRNEWS

NEWS 08-25-14 cover

2014 August 25

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Prohibiting HFCs

EPA is proposing a rule that would prohibit some HFCs in select refrigeration applications. Do you agree with this move?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con