ASA Report: Texas Was State with Most Improved Public Policy Environment for Construction Subcontractors in 2011

Construction subcontractors in Texas had a good year in 2011. Not only did the Texas economy suffer the effects of the “Great Recession” less than other states, but also legislators tackled many priority issues of the state’s subcontractors, according to The ASA Report: The Policy Environment in the States. The annual report published by the American Subcontractors Association shows that Texas increased from 29th overall to 10th overall among states, in terms of the report’s grading of the public policy environment for construction subcontractors. The report also shows that Alabama, California and Iowa made major gains in their rankings, thanks to subcontractor-friendly changes in their laws. “ASA members in Texas succeeded in driving legislative reforms in five major areas — electronic reverse auctions, payment bonds on public-private partnerships, risk allocation, lien claims for retainage, and statutory lien forms,” said 2011-12 ASA President Kerrick Whisenant, Cornerstone Detention Products Inc., Tanner, Ala. “These victories and victories in other states demonstrate that subcontractors can make a difference working through ASA. In 2012, subcontractors across the country should build on these victories.” In 2011, Alabama, California, Colorado and Nevada improved their laws restricting retainage, while new laws in California, Iowa and Texas will help limit unfair allocation of risk through contract terms. The ASA Report: The Policy Environment in the States is available on the ASA website, www.asaonline.com.