Government Mandates Technology in Construction
September 29, 2009
Traditionally, technology helps construction companies comply with rules and regulations from the local and federal government. One of the more recent examples comes in the form of stricter reporting requirements as part of the ARRA (American Recovery and Reinvestment Act), requiring contractors to use technology in order to help a project stay on time and on budget.
However, as of late, the government is actually mandating the use of electronic filing and tracking systems in construction. One of the more recent examples at the federal level is the required use of the E-Verify system to confirm employees’ eligibility to work in the United States.
In July, the DHS (Dept. of Homeland Security), www.dhs.gov, Washington, D.C., announced support for a new regulation—awarding federal contracts only to construction companies that use E-Verify to check employee authorization.
The E-Verify system is Web-based, operated by the DHS, and free for companies to use. The system compares the employment eligibility form against government databases. Since October 2008, 7.6 million employment verification queries have been run through the system, according to the DHS.
As of this month, federal contractors are required to use the system to verify employees’ eligibility on federal contracts issued after Sept. 8, 2009. Contractors are required to enroll in the system within 30 days of signing the contract and must confirm all employees are legally authorized to work in the United States.
While some contractors and associations are concerned with how mandated use of technology will work—particularly how this system will be phased into the construction process and how it will be enforced among subcontractors—the use of technology in construction can help contractors manage processes and labor more effectively.
This new regulation should have construction companies considering what role technology plays when working with the local and federal government.
Earlier this year, Brian Haines, vice president/project manager, Pyramid Electric, www.pyramidelectric.net, Memphis, Tenn., recommended his county consider new technology for the inspection process. Building on an IVR (integrated voice response) hotline, Haines recommended adding Web-based video surveillance technology to help cut vehicle cost and employee labor, while improving inspection quality.
Some local governments have electronic file technology in place for processes such as e-permitting. While not typically a requirement, the technology does allow construction companies to access information throughout the permit process.
Earlier this summer, the cities of Winter Haven, Fla., and West Palm Beach, Fla., announced a new electronic file submission system as part of an e-government plan to reduce the time and cost associated with obtaining a construction permit.
Last week, Sacramento County launched a similar effort to deploy Web-based software in the country’s building inspection division. This new service allows contractors to submit, pay for, and track the status of permits online.
Technology can help construction companies manage projects. Some local governments offer the opportunity to track the permit process, which saves time, money, and paper for all parties involved.
This new regulation to use the E-Verify system on federal projects is going to add a new element to contractors’ technology usage, especially as more federally funded projects come down the pipeline.