Master Builders of Iowa

To borrow a sport analogy – “Momentum is on our side”.

MBI’s public affairs program is focused on continuing its aggressive agenda in the hopes that the successes from the 2011 legislative session will continue into 2012 and beyond.  By remaining true to its mission, MBI’s lobbying team is busy at work putting forth a public affairs strategy that will hopefully keep the momentum moving to the benefit of Iowa’s construction industry during the upcoming legislative session.

In its first year of a three year public affairs strategic plan, MBI’s lobbying team was successful in seeing a number of specific policy efforts come to fruition.  If you recall, the MBI Board of Directors laid out a three-year strategic plan that encompassed legislative and administrative policy initiatives.  Here is a list of the items that were successfully completed in “Year One”:

- Governor Branstad issued Executive Order #69 which prohibited project labor agreements on any project with state funding.

- The House and Senate passed and the governor signed legislation that would prohibit broad form indemnification provisions in construction contracts.  This new law states that all parties to a construction contract are, in essence, responsible for their own negligence.

- The Department of Administrative Services (DAS) issued a new internal policy that prohibits sole-sourcing or master contracts for construction projects.

- The House and Senate agreed to and the governor signed an expansion of Iowa’s reciprocal bidder statute.  This expansion will force out-of-state contractors who enjoy protections in their own state against Iowa bidders to now be subject to those same restrictions when bidding on Iowa projects.

- DAS adoption of the ConsensusDoc contract documents.  MBI is confident that this move to fairer construction contracts will make the State of Iowa (i.e. DAS) a better client and owner with whom to do business.

- A successful partnership has been established with the Regents to look at the adoption of ConsensusDocs for all Regent institutions.  It is our hope that the Regents will follow the lead of DAS and adopt the ConsensusDocs as standardized document for all construction projects.

The aforementioned items are an impressive list, but there is still a lot of work to be done.  Going into the 2012 session, MBI is proactively working to educate legislators on the specific issues.  MBI is also utilizing the MBI-PAC to complement our legislative agenda.

For 2012, MBI will be focusing on the remaining items of the public affairs strategic plan.  These items are as follows:

- Statutory prohibition on project labor agreements.  This would apply to all public owners.

- Establish an alternative project delivery pilot program at the Regents Institutions and the DAS.

- Reduce Iowa’s 15-year statute of repose to 8 to 10 years.  Iowa’s current state of repose (15 years) is the longest in the nation.  In its current form, this law allows lawsuits to be filed against architects, engineers and constructors of improvements to real property up to 15 years after completion of the project.  MBI feels that a reduction in the length of the state of repose will limit frivolous construction-defect lawsuits against contractors, architects, engineers and suppliers.

- Move forth with changes to Iowa Code Chapter 573 that would require notification of all entities that provide materials and / or labor to a publicly funded construction project.  Such changes would require those providing labor and / or materials on a public project to notify the general contractor within 45 days of first being on the jobsite to retain claim eligibility.  This expanded notification requirement will mirror the requirements that subs and suppliers must comply with on private sector jobs (similar to mechanics lien notifications in Chapter 572).

- Amend Iowa Code Chapter 26.3 to expand the “notification to bidders” time frame to “not less than 20 and not more than 45 days.”  Also, add “In the event of a re-bid situation, notification to bidders shall be not less than 4 days and not more than 45 days.”

- Continue efforts to reduce diversions from designated vertical infrastructure funds.  Last year, there was tremendous ground made up in reducing diversions from the Rebuild Iowa Infrastructure Fund.  MBI hopes to continue this trend so that unencumbered funds are invested into Iowa’s vertical infrastructure needs.

Other policy areas that MBI will be following closely include the debate on property tax reform, employment laws and economic development initiatives.

MBI is well positioned to work toward pushing an agenda that is pro-construction and pro-business.  Though the power at the Iowa Capitol is currently split between Democrats and Republicans, there is a general consensus on the top priority – the need to create jobs – and finding common place to support those industries that can grow and start hiring again.  MBI is willing to be an active participant in that debate.

If you have any questions on MBI’s legislative and administrative agenda for 2012, please do not hesitate to contact Chad Kleppe at 515-657-4382 or ckleppe@mbionline.com.