Arcane Budget Rules Block Reasonable Real Estate Transactions
On Nov. 28, AGC and industry allies urged President Trump to make common sense changes to arcane accounting rules that will help provide flexibility for federal construction public-private partnership (P3) opportunities. As it stands, federal accounting rules require that federal agencies—like the U.S. Army Corps of Engineers and U.S. General Services Administration—pay up front (or “score”) the complete cost of a construction project. These “scoring” rules do not allow for the fact that the federal government will actually pay for the project incrementally over its lifetime. Consequently, the rule stymies many P3 opportunities, which are structured based on long-term capital planning realities, not upfront financing fantasies.
For more information on these scoring rules and how they have negatively impacted federal construction, click here.
For more information, contact Jimmy Christianson at 703-837-5325 or [email protected].