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President Joe Biden has made major headway in the first year of his presidency by proposing the historic $2.3 trillion American Jobs Plan. The AJP aims to repair and improve the nation’s infrastructure over the course of eight years.

Hoegen & Associates, P.C. has long advocated for construction clients in Wilkes-Barre and across Northeast Pennsylvania. With the potential for trillions of dollars to go back into our country’s infrastructure, this could mean monumental changes for the construction industry on a nationwide scale.

How exactly will the American Jobs Plan impact the construction industry? What could the changes mean for the future of construction law?

Read on to learn more about the American Jobs Plan and the future of construction law. If you’re interested in speaking with one of our construction law attorneys, contact Hoegen & Associates, P.C. today.

What Is the American Jobs Plan?

The United States is among the wealthiest nations in the world; yet, we fall drastically behind other powerhouse nations when it comes to quality infrastructure and manufacturing.

Our country’s roads, highways, bridges, and water systems are crumbling. Our water systems, electric grids, and housing are vulnerable to physical disaster. In 2017, the infrastructure gap in the United States increased by $359 billion. Within 10 years, this gap will increase to $2.59 trillion if we don’t begin to invest in our country’s infrastructure.

President Biden’s American Jobs Plan will invest $2.3 trillion into strengthening our nation’s infrastructure. Specifically, the AJP will:

  • Repair & rebuild highways, bridges, ports, airports, & transit systems.
  • Create better access to clean drinking water, electricity, & high-speed Internet.
  • Construct & upgrade millions of homes, schools, commercial buildings, & federal buildings.

In the midst of these objectives, the AJP aims to slow climate change, integrate clean energy solutions, create millions of jobs, compete with China, and uplift disadvantaged communities throughout the US.

How Will the AJP Affect the Construction Industry?

Under the American Jobs Plan, federally funded construction projects will increase on both the state and federal levels.

This is good news for the construction workforce, as over $240 billion will go towards new construction, reconstruction, and repairing homes, schools, veteran hospitals, and federal buildings across the US.

But construction contractors aren’t the only ones who stand to benefit. With new roadways, highways, and electrical grids in the pipeline, concrete and electrical contractors can also anticipate more work if the AJP comes to fruition.

That’s not all. Because the AJP will focus on implementing clean energy sources and limiting greenhouse gas emissions, there will be a greater demand for eco-friendly construction and redevelopment. With that said, construction contractors who want to compete for AJP-funded projects should integrate green building techniques and climate-friendly materials in their operations, now rather than later.

How Will the AJP Affect Construction Law?

In addition to revamping America’s infrastructure, the American Jobs Plan also emphasizes the need to properly allocate federal funding and resources. To drive better transparency, accountability, and efficiency across the board, there’s likely to be more federal and state oversight on AJP-backed construction projects.

Between meeting deadlines, fulfilling contracts, and adhering to building codes, contractors already have a lot to juggle. There will likely be more safety and compliance requirements for contractors to adhere to.

That’s where construction law comes into play. Because anytime construction and compliance are involved, there’s a contract that spells out the duties and obligations of all parties involved.

In addition to complying with federal and state regulations and laws, contractors will likely have to adhere to energy-efficient regulations, as well. It’s also possible that there could be new legal measures when it comes to creating new jobs and training the AJP construction workforce.

The American Jobs Plan & the Future of Construction Law

If the American Jobs Plan passes in Congress, the United States can expect to see exponential growth and improvements in our nation’s infrastructure and economy. The construction industry is likely to thrive ‒ but navigating the legal ramifications of the AJP will require the support of construction law attorneys.

Whether you’re a construction contractor or a real estate investor in Pennsylvania, now is the time to prepare for the American Jobs Plan if you haven’t already. To get started with a construction law attorney and discuss your plan going forward, contact Hoegen & Associates, P.C. today!