ALEXANDRIA, Va. - Public policies affecting construction subcontractors and suppliers have received an overall grade of "F" in every state except New Mexico, which received a "D."
These grades have been published by the American Subcontractors Association in "The ASA Report: The Policy Environment in the States." According to the group, its findings are "a call to arms to the construction industry."
"State laws simply do not make the grade for subcontractors," said Mat Glover, president of ASA. "The ASA Report demonstrates that no state's public policies adequately address the needs of the construction industry. The issues that matter to construction subcontractors and suppliers remain distant from the minds of many legislators and other public officials, and The ASA Report serves as a call to arms to the construction industry to change that fact."
Glover also said that ASA will use the report to urge reforms of payment assurance and other laws affecting subcontractors and suppliers.
ASA calculated the overall grade for each state, including Washington, D.C., by scoring seven key state public-policy areas, and then combining the points for a final score and grade for each state. ASA scored on prompt payment protections, treatment of pay-if-paid clauses, mechanic's lien protections, payment bond protections, retainage limitations, anti-indemnity protections including limits on "additional insured" endorsements and anti-bidding measures. The scoring in each policy area took into account both laws and judicial decisions.
"While all states except New Mexico received failing overall grades, there were still significant differences among the states that received failing grades," said E. Colette Nelson, ASA executive vice president. "Some states, such as California, New York and Missouri, are within striking distance of moving out of the failing category with a few reforms, while others, such as the District of Columbia, New Hampshire, West Virginia and Wyoming, are light years behind. As a whole, states that have active ASA advocacy programs are doing better than the others."
The ASA report is available by visiting www.asaonline.com.