MCAA & Affiliates Continue Push for COVID Cost Recovery on Direct Federal Construction Contracts

MCAA’s initiative with the MCA of Maryland, the MCA of Metropolitan Washington, the MCA of New York, and the New England Mechanical Contractors Association (NEMCA) is moving ahead with contacts in the House and Senate expanding to seek an add-on proposal in either the next COVID relief measure or possibly on the infrastructure proposal that is expected soon. The proposal is relatively simple – Congress should set up a separate COVID Cost Recovery Fund on direct Federal construction contracts to pay impaired productivity and other COVID direct costs to be administered apart from the affected projects’ budgets. The rationale is that it is inequitable for the government as proprietor of the project to take the full benefit of the fixed-price award pre-COVID and then drive a hard bargain denying full equitable cost impact recovery post pandemic, while at the same time using taxpayer resources to bail out other industries outside of any contractual relationship.

MCAA was able to gain the active support of the New York Tri-State Chapter of the National Association of Minority Contractors backing our initiative with New York City Congresswoman Carolyn Maloney, who is chair of the lead committee of jurisdiction on this issue in the House Oversight and Reform Committee (OGR). NEMCA recently was instrumental in gaining the active consideration of Boston area Congressman Stephen Lynch, a high ranking member on both OGR and the Transportation and Infrastructure Committee, which shares jurisdiction on these issues.