The following interview with Taryn Edwards was posted in the Denver Post.  Taryn is focused on the economy, how it’s affecting the construction and design industry, and what projects make sense to put in place.

Q: What is your focus as president of the Associated General Contractors of Colorado?

A: I’m focused on the economy and how it’s impacting the construction and design industry.

We are working with the city and the state on stimulus packages and determining which projects we should do and how fast they should go and what the infusion of those projects would mean.

I’m focused on where we are as an industry, what projects can be kicked off, how many jobs they will create and what the tax revenue is that would be delivered to the state.

The biggest thing we’re doing is collaborating with large institutions — the city, the state, educational institutions, as well as transit. We’re trying to figure out what makes sense to put in place.

Q: How can the state consider new projects when it’s cutting its budget?

A: Every $1 spent in construction turns five times. That’s quicker than any other industry. There’s money flowing through the economy quicker.

For every $1 billion you spend, you can expect 28,000 jobs and tax revenue close to $58 million. As you cut the budget, you also have to look at the jobs you’re cutting and the income to the state. It’s a balancing act.

If there’s one industry that understands the challenges of budgets and constraints, it’s the design-construction industry.

Q: Are there any projects that should be considered?

A: There are risks to be taken. The state has always been good at taking reasonable risks, and it’s always paid off.

We were in an economic downturn when we elected to put Denver International Airport on line. When you look at DIA, it’s positioned the city of Denver and the state in the global market.

DIA is on the threshold of needing its next expansion. Do we take a risk?

Q: Are there some sectors that are doing better than others?

A: Health care is doing really well. Projects associated with green energy will keep going.

Although the federal government has slowed, we anticipate there will still be a steady flow.

The military bases are helping keep federal dollars here.

Q: What is the AGC doing to help its members deal with the downturn?

A: We’re putting on more training and education classes for our midsize to smaller members we anticipate will have problems. We’re starting to see signs that the industry is getting stressed.

Q: How does Denver compare with the rest of the country?

A: We work across the United States. The construction market has been affected but not nearly what you see on the East or West coast.

That said, we (Hensel Phelps) play in the federal government market, and our East and West coast is doing better than this market.

But if you’re in the private market, across the United States it’s depressed. Denver is faring much better than most other markets.

Q: What does the future hold?

A: We are a prime candidate to be a leader in green energy. We need to capitalize on that market. We sit in the largest wind corridor in North America.

DIA is one of the economic engines of Colorado, and right now, it’s getting ready to go into phase-two expansion.

DIA is in a prime spot to take a huge leap forward. Competing airports are going to have to buy real estate or retrofit their airports. DIA has been planned for 12 runways.

If we take a leap, we’ll end up benefiting in the next six to eight years.

Edited for length and clarity by Margaret Jackson

By Lynn Bartels, Rocky Mountain News

Contractors who have had to take out loans while waiting to get paid for a job are backing legislation aimed at changing the payment process.

The Construction Industry Recovery & Jobs Preservation Act would “enforce reasonable payment schedules for quality construction work that has been completed,” according to its backers.

“Without a new law, many smaller construction companies will simply not be able to make payroll or pay suppliers,” said Michael Gifford, executive director of the Associated General Contractors of Colorado.

Read the rest of the article here

Posted by the Denver Business Journal, Jan 22nd, 2009:

A bill being considered by Colorado legislators would enforce schedules for payment to contractors for completed construction projects.

Senate Bill 95 – sponsored by Sen. Able Tapia, D-Pueblo, and Rep. Jim Riesberg, D-Greeley – would establish prompt payment in 30-day billing cycles upon submission of invoices to property owners, but would allow an alternative billing cycle of up to 75 days.

If passed, the bill could save many small construction companies from going out of business, said Michael Gifford, executive director of the Associated General Contractors of Colorado.

“This bill is common-sense way, in today’s tough economy, to keep Colorado construction companies healthy and growing,” Gifford said in a press release.

The bill has been assigned to the Senate State, Veterans and Military Affairs Committee for consideration.

Bill would enforce prompt payment of contractors |  Denver Business Journal

New Bill Aims to Save Colorado Construction Jobs

Would Target Slow Payments That Are Hurting Companies, Threatening Jobs

(DENVER) – Preventing the loss of family-sustaining construction jobs and keeping Colorado’s construction industry competitive and growing is the aim of new legislation, backed by more than 1,000 Colorado companies employing tens of thousands of workers, that targets excessively slow payments that have plagued contractors statewide.

The Construction Industry Recovery & Jobs Preservation Act (Senate Bill 95), introduced by Sen. Abel Tapia and Rep. Jim Riesberg, would enforce reasonable payment schedules for quality construction work that has been completed.  Private and public-sector entities that take months, or years, to pay construction companies are causing contractors – especially smaller specialty contractors with only a few employees — to take out expensive loans to pay their own bills thus putting quality jobs at risk.

“Without a new law, many smaller construction companies will simply not be able to make payroll or pay suppliers,” said Michael Gifford, executive director of the Associated General Contractors of Colorado.  “This bill is common-sense way, in today’s tough economy, to keep Colorado construction companies healthy and growing.”

Gifford underscored that preventing further damage to the construction industry is critical given the major role that the industry plays in the state’s economy, employing more than 9 percent of the total private-sector workforce, which represents 5 percent of the state’s total GDP.  A recent study by Colorado State University showed that for every $1 billion in construction projects, nearly $2.5 billion is generated in the state’s economy.

The Construction Industry Recovery & Jobs Preservation Act would:

• Establish a consistent set of rules to ensure a reasonable payment timetable.
• Establish prompt payment in 30-day billing cycles upon submission of invoices
• Allow an alternative billing cycle of up to 75 days
• Authorize retainage of payment to ensure that work is properly completed, and set standards and time lines for the required release of retainage. Release of retainage is not a waiver of claims.
• Focus solely on commercial construction and would not affect residential projects.
  

The bill has earned the endorsement of Building Jobs4Colorado, a broad and diverse coalition of more than 1,000 companies working in the construction industry that employ tens of thousands of workers across the state.

“To retain quality jobs held by skilled workers, we need a law with teeth that will ensure that the damage caused by painfully slow payments will no longer be tolerated,” said David Davia, executive director of the Colorado Association of Mechanical and Plumbing Contractors.  “These companies and their workers play by the rules, and we expect those entities that hire us to pay their bills on time.  Anything less isn’t fair to tens of thousands of hard-working Coloradans.”