ground works are being laid

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The expression is 'groundwork is', but he pronounces it as a contraction, so you hear groundwork's being laid.

Note that 'groundwork' is one word in this context.
 
Yes! skrej said it very well. It is "groundwork is being laid" -> the contracted form "groundwork's being laid" Just one note in addition to those comments, the one-word "groundwork" is called a compound noun.
 
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