Rushing the process of implementing the new Build America, Buy America Act could further drive inflation and result in significant delays to infrastructure projects.

On June 22, AGC helped lead an effort with 41 other national organizations calling on the Administration to extend the 180-day Build America, Buy America Act (BABAA) waiver to ensure that, in the meantime, projects are not needlessly delayed. AGC previously reported on the Administration’s decision to impose a 180-day delay of the new BABAA requirements for construction materials included in the Infrastructure Investment and Jobs Act.

AGC holds that before these requirements take effect, it is critical that the U.S. Department of Transportation conduct thorough analyses of domestic manufacturing capabilities, provide sufficient opportunity for public comment on draft rules, and provide adequate time for public and private entities to adjust and learn final rules, among other things.

Infrastructure project costs continue to climb amid rising construction materials prices and shortages. Material price increases have doubled or even tripled in some cases. Lead times for procurement and delivery of many of these materials has dramatically increased as well. And prospects for the rest of the year are worse. As a result, many infrastructure projects across the country face the risk of significant delay or a reduction in scope. Rushing through this process could further drive inflation and result in significant delays to projects.

For more information, contact Alex Etchen at [email protected].