the International Brotherhood of Electrical Workers union, that he will favor construction companies that employ unionized workers.  Restoring strength to unions through Project Labor Agreements (PLAs) and the so-called Employee Free Choice Act (pressuring workers to sign cards to get unionization without a secret ballot) will be important parts of his plan for change.

 Our experienced, informed, battle-tested National and State Government Affairs staff expects to be extremely busy in 2009 trying to blunt union offensives.  ABC will respectfully but forcefully oppose new government policies that require or pressure your company into signing union agreements to work on construction projects.  As your 2008 ABC Cornhusker Chapter board chair, I am making a direct appeal to you to continue your support of ABC through your active membership.  The ABC family must band together at this time.

 I ask that when you receive your 2009 renewal statement, that you renew your membership in the only group that is continuing the fight for the rights of Merit Shop Contractors.

Sincerely,

        Bill Kilmer

        2008 Cornhusker Chapter Board Chair

NONRESIDENTIAL CONSTRUCTION SPENDING RISES SLIGHTLY IN SEPTEMBER: After declining for two months, private nonresidential construction spending increased 1.3 percent in September 2008 compared to August reaching $415.2 billion, according to a report released Nov. 3 by the U.S. Census Bureau.  Total nonresidential construction spending rose 11.4 percent over the past year to reach $715.63 billion in September 2008.

 Eleven of the 16 subsectors that comprise total nonresidential construction saw an increase in spending over the past year with manufacturing up 54 percent, lodging up 26.1 percent and power up 25.9 percent in September 2008 compared to September 2007.  Subsectors that increased the most in September 2008 compared to August 2008 were manufacturing, up 5.2 percent, and religious construction, up 2 percent.

 “The resilience of nonresidential construction spending in the face of ongoing economic decline and a credit crunch is simply remarkable,” said ABC Chief Economist Anirban Basu.  “Many economists had expected September to bring further decline after nonresidential construction declines in both July and August.  But, that did not happen as massive shifts in the global economy continue to spur construction.

 “For example, the spike in manufacturing-related construction spending is related in part to the ongoing expansion of America’s export sector, which has continued to be strong despite recent increases in the value of the dollar and a slowing global economy,” Basu noted. "Investment in power has predictably also remained elevated, though it remains to be seen whether this will continue in light of the recent collapse in oil and other commodity prices.”

 Subsectors which reported decreases in September 2008 compared to September 2007 included communication, down 17.1 percent; conservation and development, down 13.3 percent; religious construction, down 11.6 percent; and commercial construction, down 11.6 percent.  Six subsectors reported decreases in September 2008 compared to August 2008 including conservation and development, down 17.3 percent, and commercial construction, down 2.9 percent.

 “Despite September’s bounce back, the outlook remains far from clear,” Basu said.  “Many of the projects currently under construction were planned and financed earlier in the business cycle, prior to the credit crunch that began in earnest in August 2007.

 “However, there remains downward pressure on deal flow and we continue to predict that the toughest times for the nonresidential construction industry are in front of us,” Basu continued.  “Publicly financed projects are also becoming a major issue given the disappointing tax collections at state and local levels.  Many states are reducing allocations for their respective capital improvement programs, which will further suppress construction starts over the next few years.”

Public nonresidential construction was down 1.3 percent in September 2008 compared to August, but still up 3.8 percent compared to September 2007.  Residential private construction was back down, decreasing 1.3 percent compared to August and down 27.7 percent compared to last year.  Total construction spending is down 0.3 percent in September 2008 compared to August 2008 and 6.6 percent since September 2007.

ABC COMMENTS ON FAVORABLE IRS PROPOSED CONTRACTOR:ABC Nov. 3 filed comments with the Internal Revenue Service (IRS) expressing overall support for a proposed rule that reverses a long-standing agency position limiting how construction contractors can use the completed contract method (CCM) of accounting.

Currently, IRS takes the position that contractors performing work on a residential project should not use the more favorable CCM depending on whether the property owner is structured as a homebuilder or a developer.  However, the IRS has proposed an amendment to the Income Tax Regulations (REG-120844-07 Rule for Home Construction Contracts), that would allow contractors to qualify for the home construction contract exception regardless of how the property owner is structured.

The IRS is contemplating additional rules that could impact all contractors, not only those working on residential construction. In its comments, ABC expressed support for the proposed rule, but cautioned the IRS against adopting language that would negatively affect the use of the more favorable method of tax reporting by subcontractors in future rules. In addition, ABC expressed support for the IRS’s intention to implement a provision that would treat condominium units the same as row houses or townhomes for tax reporting purposes. ABC also noted that the IRS should consider transition relief and implement these rules sooner than the proposed effective date, which will be the tax year after the final rule is published, likely not until 2010.

ABC and the Construction Financial Management Association have been working on this issue since 2005 when they joined together to request that the IRS consider this issue through the agency’s Industry Issue Resolution (IIR) program.  ABC is continuing to monitor the progress of the proposed rule and will testify before the IRS during a Dec. 5 hearing in Washington, D.C.

WAGE PAYMENT & COLLECTION ACT UPDATE: On September 5, 2008, the Nebraska Supreme Court issued a decision which provides important guidance for Nebraska employers about the Nebraska Wage Payment and Collection Act.  Much of the discussion surrounding LB 255 (which amended NWPA in 2007) centered around NWPA obligations concerning fringe benefits.  The recent Nebraska Supreme Court decision focuses on the payment of bonuses as wages.  The Nebraska employer in this case paid year end bonuses as compensation for the labor and services of the employees in question.  The seven employee plaintiffs resigned in September of a year prior to the end of the calendar year on which bonuses were calculated and paid.  The state district court granted the bonuses to the employees but the Nebraska Supreme Court reversed and concluded that the employees lost their right to the annual bonus by resigning before the end of the calendar year on which the bonus was calculated.  The Nebraska Supreme Court has previously concluded that employees are entitled to bonuses if they are employed through the end of the bonus calculation year even if they are not employed as of the time the bonus is normally paid.  Nebraska construction industry employers utilizing a bonus pay system should remember that all employees are entitled to such bonus payments if they remain employed through the end of the period on which the bonuses are calculated.  However, if the employees resign prior to the end of the period on which the bonus is calculated, they forfeit their right to the bonus as this recent decision from the Nebraska Supreme Court concludes.                     By Bill Harding, Chapter Attorney

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~~~TRAINING PROGRAMS OFFERED~~~

PROFITABLE CONTRACTOR-SUBCONTRACTOR RELATIONS TRAINING-A BLUEPRINT

This one-day program will focus on the importance of improving and strengthening the business relationship and how to improve the “team” effort between contractor and subcontractor.  This program is designed for the company owners, superintendents and upper management personnel.

This program is being presented by Doug Butler and will be held at the Ashland Country Club, Ashland, NE on

December 9, 2008 from 8:00 a.m. – 4:30 p.m.

PRODUCTIVITY IMPROVEMENT TRAINING FOR

 ELECTRICAL SUPERVISORS, MANAGERS & CONTRACTORS

This one-day program focuses on the person soon to become a supervisor or recently appointed supervisor.  Participants learn and practice new or additional skills to deal with everyday demands of productivity improvement.  The program is for anyone in the electrical industry who holds (or plans to hold) a leadership or management position – presidents, vice presidents, project managers, estimators, field supervisors, foremen, crew leaders, lead men, etc.

This program is being presented by Doug Butler and will be held at the Ashland Country Club, Ashland, NE on

December 10, 2008 from 8:00 a.m. – 4:30 p.m.

CONSTRUCTION SUPERVISORY TRAINING

This two-day hour program is designed to train existing, new or future supervisors in the most essential skill areas necessary to be successful in a role as a construction supervisor-foreman.  The program is for anyone in existing, new or future supervisors or foremen.

This program is also being presented by Doug Butler and will be held at the Ashland Country Club, Ashland, NE on

December 11 & 12, 2008 from 8:00 a.m. – 4:30 p.m.

SIGN UP USING THE REGISTRATION FORM BELOW -- FAX/EMAIL YOUR REGISTRATIONS TO THE LINCOLN OFFICE at 402-477-4522 (fax) or debh@abcnebraska.org (email)

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Training Classes

Management & Safety Class Schedule

First Aid/CPR Classes

$50.00 each attendee – Member Price/$60.00 each attendee – Non-Member

Recertification only - $40.00 each attendee – Member Price/$50.00 each attendee – Non-Member Price

¨  November 12, 2008 – 7:00 – 11:00 a.m. - OMAHA

¨  November 13, 2008 – 7:00 – 11:00 a.m. – LINCOLN

¨  November 18, 2008 – 1:00 p.m. – 5:00 p.m. – KEARNEY

¨  November 19, 2008 – 7:00 – 11:00 a.m. – NORFOLK

OSHA 10 Hour Class

OSHA requires a competent person on all job sites.  This course ensures that your people have the necessary training to comply with OSHA standards CFR 1926.32(f) for a competent person. Training includes OSHA Construction Standards CFR 29 1926, Scaffolds, Ladders and Stairways, Housekeeping, Personal Tools, Electrical Hazards, Fall Protection, Materials Handling, Hazardous Communications and much more!

**CFR 192 OSHA Regulations Book for the Construction Industry with new steel erection standards will be available for $25.00** each for class participants.

$135.00 each attendee – Member Price/$240.00 each attendee – Non-Member Price

¨  November 19, 2008 – 7:00 a.m. – 5:30 p.m. – KEARNEY

¨  November 20, 2008 – 7:00 a.m. – 5:30 p.m. – NORFOLK

¨  November 25, 2008 – 7:00 a.m. – 5:30 p.m. – LINCOLN

¨  November 25, 2008 – 7:00 a.m. – 5:30 p.m. - OMAHA

Focus Four Safety Training:

For employees who are starting to work in the industry or the seasoned employee who may need a refresher course in the four focused areas that cause the most injuries and deaths in construction.  The course will cover the 4 subparts of the CFR1926 standard – falls, electrical, struck by and caught-in-between.

$90.00 each attendee – Member Price/$125.00 each attendee – Non-Member Price

¨  November 11, 2008 – 1:00 – 5:00 p.m.- LINCOLN

30 Hour OSHA Class

Federal Law requires each company have a designated trained safety coordinator.  This will give your foremen, supervisors, safety directors or safety coordinators the expertise to comply with all OSHA and State requirements.  This is an in-depth look at CFR 1926 and 1920 and NE 757 as they affect construction. Price includes study materials

$395.00 each attendee – Member Price / $595.00 each attendee –Non-Member price.

¨  December 2, 9, 16, 2008 – 7:00 a.m. – 5:30 p.m. – LINCOLN

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Omaha Classes are held at the Education Center, 2602 Harney Street, Omaha

Lincoln Classes are held at the Training Center, 830 Westgate Blvd., Lincoln

PLEASE DUPLICATE THIS FORM FOR MULTIPLE CLASSES

 Company:                                         Address:                                Phone:                                   Fax:               

Names (please print):                                                                       Class/Date:                            Cost:              

                                                                                                          Class/Date:                            Cost:              

                                                                                                            Class/Date:                            Cost:              

Return Registration Form and Check Payable to Associated Builders & Contractors

830 Westgate Blvd., Lincoln, NE  68528    FAX 402-477-4522

Email-debh@abcnebraska.org