Stimulus spending on public works projects - opportunities for construction and development entities
January, 2009
As we are all painfully aware, the United States is in the midst of a severe recession. And while there are many competing ideas as to how best to extricate the country from its economic woes, there appears to be a common thread; specifically, the need to expedite public works spending plans focused on the country's ailing infrastructure. Indeed, it has been widely reported that President Obama intends to jump-start an $825 billion stimulus plan that will focus on energy, education and highway construction projects.
As set forth in recent news articles, the idea of stimulus spending as a means to jump-start the economy while, at the same time, improving our infrastructure, has trickled down to state and local governments in the Northwest:
- On January 5, 2009, Gov. Kulongoski and Democratic leaders announce their intention to pour hundreds of millions of dollars into public works projects including, among other things, a new state hospital, a new prison in Junction City, and various transportation projects;
- On January 15, 2009, Governor Chris Gregoire proposed $1.2 billion in state money for, among other things, construction and transportation projects (including $21.7 million toward ‘green' industries); and
- On January 14, 2009, newly elected Mayor Sam Adams announced that Portland will create 5,000 construction jobs this year by speeding up the schedule on $500 million worth of city housing, sewer, park and road projects.
This tremendous increase in public spending presents opportunities for our current construction and development clients who may have never considered bidding on public contracts. This includes general contractors and large subcontractors, in addition to architects, engineers, surveyors and other construction professionals. In addition, some of our public entity clients (school districts, community colleges, Tri-Met, etc.) may also find that they have opportunities in the near future to expedite much-needed construction projects.
Navigating one's way through the complicated world of public procurement and contracting is difficult and the demand for legal professionals with experience in this area will be high. To the extent there is a boom in public works projects, Bullivant Houser Bailey PC is well-situated to provide legal services and advice on these matters to both public and private clients—from a transactional (preparation of bids, contracts, etc.) or litigation prospective. In addition, we have LEED AP certified attorneys capable of advising clients seeking certification from the United States Green Building Council (USGBC).