AGC 2018 OUTLOOK SURVEY
government agencies and school districts may become more cautious about putting projects out to bid. Meanwhile, the new law’s tax cuts will reduce federal revenues, making it likely that Congress will hold down federal spending. Tat will affect the budgets of federal agencies such as the U.S. Army Corps of Engineers, Naval Facilities and Engineering Command and General Services Administration, and also federal support for states, local governments, university and medical research, and other categories. Although some contractors may
find their markets – or their margins – shrinking because of the federal tax changes, overall the legislation is likely to stimulate more private investment, at least initially. But the law’s impacts are extremely complex, both as to the bottom line of contractors and other businesses, and the demand for various types of projects.
Regulations a Concern Actual and potential federal policies
changes are not the leading concern for California contractors, however. Growth in state and local regulations
was cited most often of 16 possible answers to the question, “Which of the following issues is the biggest concern to your firm out of the following list?” While hardly unique to California, this concern ranked only fifth nationally. Worker shortages were the most-cited concern nationwide, and second- ranked in California. In short, California contractors
are upbeat about many categories of construction. But they face increasing challenges from tightening labor markets, rising materials costs and unpredictable policy changes.
Workers Comp Continued from page 15
fee took effect. Over the next two years, lien filings dropped but increased again when the SB 863 18-month statute of limitation to file a lien was realized. With the signing of SB 1160 on August 31, 2016 another increase in filings through the end of 2016 was seen. (See chart).
The Future Currently, the WCIRB
analysis reflects that lien filings are down 40 percent through 2017 Q3, which equates to a four-fold increase over the original 10 percent/$500 million expectation. Te WCIRB actuaries view 2017 Q3 as the most representable example of the impact of both SB 863 and 1160 on workers’ compensation lien filings within the state. If so, the 45,000 liens filed in that quarter are far more “manageable” than the historical average. In my opinion, the legis-
lative controls and implementation responding to the California lien problem has already positively impacted the workers’ compensation community from an employer’s
perspective. It has: Contributed to the ongoing “soft”
www.AGC-CA.org Source: EAMS Lien Data
insurance marketplace for workers’ compensation by better controlling liens and the ongoing liabilities they create.
Put the lien holder’s skin in the game with the $150 filing fee, with other conditions, requiring them to assess the likelihood of them prevailing or not.
Reduced the backlog at the WCAB allowing more timely hearings, trials and decisions.
Significantly reduced allocated expenses for attorneys and associated discovery costs in the defense of the liens.
Reduced claim management fees through expedited claim closure relying upon the statutes of limita-
tions created for lien filing, the reduced number of liens and the time spent resolving them.
Reduced the impetus for medical abuse of providing neither reasonable or necessary treatment because the providers’ expectation of being reimbursed for those non-authorized services has been greatly diminished.
Restricted and curtailed the assig- nation of the liens to “for profit” bill collectors.
Gene Clancy is a vice president with Alliant Insurance Services in San Jose. His practice focuses primarily on workers’ compensation program consulting and placement.
Associated General Contractors of California 17
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