Area contractors might soon have to be as good at contract language as they are at laying cement.
At a Base Realignment and Closure Initiative seminar Monday, construction professionals got a good look at some of the problems they may encounter in the coming years. With more than 200 contractors, suppliers, bankers and government officials in attendance, lawyers from Baltimore-based law firm Whiteford, Taylor, Preston provided handouts and presentations on topics such as security clearance, enhanced-use leases and inflation of material prices. BRAC is expected to bring an estimated $4.5 billion in new construction to the region.
The bottom line, however, remained the same throughout the meeting: Private businesses and the government need to work together.
“The best thing all of us can do is share accurate information as early as possible,” said Kathleen Wajer, chief financial manager of the Harford County Office of Economic Development.
The first issue addressed was how contractors and the government can agree on ways to control costs and purchase materials. It is estimated that by 2011, when BRAC construction is complete, costs of materials will have increased by about 10 percent.
The next potential problem addressed was security clearance for workers at Aberdeen Proving Grounds and Fort Meade. According to Heather James, a lawyer with WTP, contractors shouldn?t be surprised if clearance checks take between three months and two years to get done. Requirements that the government might enforce include background checks and blocking non-U.S. citizens from working on the projects.
Finally, the implementation of Enhanced Use Leases was discussed. These leases are often used when the government makes a non-cash tradeoff or “in-kind consideration” for leasing facilities.
U.S. Rep. C.A. Dutch Ruppersberger, whose has both Fort Meade and Aberdeen ProvingGrounds in his district, encouraged the exchange of ideas and continued cooperation between agencies.
“The challenge is how are we going to take care of these jobs and build the infrastructure,” Ruppersberger said.
BRAC is estimated to bring between 40,000 and 60,000 new jobs to the area by 2011.
