Many subcontractors turning to public sector for work
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"A significant portion of the stimulus bill is highway spending and that will come through the Federal Highway Administration and the state departments of transportation," according to Mendes. He said other construction work will come through federal agencies like the General Services Administration for contracts related to projects such as those involving federal courthouses.
Mendes said there is an effort to get the funding out very quickly for highways, but the non-road construction funds will start coming very quickly as well. Both should provide a much-needed shot in the arm for the nation's subcontractors.
For subcontractors that get the projects, it will be a "critical lifeline," he said. "But you can't save everybody."
Mendes said that for a firm about to go out of business or making heavy cutbacks, the stimulus projects could make a "huge difference to your bottom line or to your sustainability in the future."
"We don't know yet what effect the stimulus bill will have," said East, "but any increase in construction spending should create additional work. Whether we (subcontractors) get it or other contractors get it, it will increase the amount of work overall. So that should help us all."
At the ASA's recent annual conference, Mendes said many of the organization's 5,000 members who attended expressed concern regarding the changing commercial and industrial market and were hopeful that they will see stimulus-funded projects in their areas. He said the Surface Transportation Bill expected out of Congress later this year might also provide additional stimulus for subcontracting work.
For subcontractors who get some of the public sector work, it will make "an enormous difference," said Mendes. "But we need more. Without more private sector work and more public sector work, the downturn will be worse."
In the meantime, the Virginia-based ASA is working with subcontractors to educate them regarding where the stimulus-related projects will be located and how they can take advantage of possible contracting opportunities.
