The word stimulus is on the tips of everyone's tongues these days. Whether it is the state package offered to bond $175 million in public works projects or the proposed $820 federal package, politicians are pulling out all the stops to create jobs. Republicans in the Oregon House also got into the mix when they offered a stimulus package focused on private construction.
While there has been considerable debate about the various proposals, it is encouraging to see our state and national leaders engaged. Each stimulus proposal holds good news for construction contractors and workers. They also signal that politicians are paying attention to our economy and are motivated to find solutions that create or protect local jobs.
Because construction - commercial construction, in particular - is often the first industry hit during a recession and one of the last to recover, it is encouraging to see a departure from the typical plan of letting construction struggle until other industries improve.
The proposal enacted by the Oregon Legislature and signed by the governor last week is projected to create or protect 3,000 Oregon jobs. It includes projects throughout the state and will lead to work right away. While people may complain about the frivolity of some projects, the package will create work for contractors and the workers they employ.
That means more tax revenue for our state, fewer people requiring public assistance, and more cash in our economy trickling to other business sectors. The federal stimulus package also holds opportunities. According to a news release from Congressman Earl Blumenauer, the House-passed stimulus package will create or retain 52,890 Oregon jobs by the end of 2010.
The proposal by Republicans in the Oregon House of Representatives would provide tax credits to Oregon homeowners and businesses making improvements to their properties - much in the same way that government-spending bills generate improvements to government-owned facilities. Their proposal is sure to create jobs as well.
It's now time for contractors to prepare for these projects. This might require some brushing up on current bonding requirements and bidding processes. Those who have never worked for public agencies should consider taking classes on certified payroll reporting and other administrative requirements they might not encounter when performing private work.
As always, professional organizations are great resources. Many different groups offer basic and refresher courses on these topics. Preparing today will pay off in the future.John Killin is president of the Associated Builders and Contractors Pacific Northwest Chapter and executive director of the Independent Electrical Contractors of Oregon.
Credit: John Killin/Via:http://www.allbusiness.com/