Thank You!

thank you

Thank You!

FROM THE DESK OF CAROL FLOCO, CEO


Our chapter is growing at record pace. I am so proud to announce that last night we had our best attendance in recent years for an Election Dinner. Over 100 members attended! We are so thankful for all the support our members gave to the newly elected officials. We wish to extend special thanks to L&L Asphalt and Redirect Health for being our meeting sponsors, and to all the service professionals that participated in our vendor showcase.

Our membership is growing because of your support in bringing new members into our organization. If each one of you would bring one new subcontractor to a mixer or event, we could double our attendance records, as early as next year. Our new President, Rita Lawrence, and the entire Membership Committee will be happy to meet with any of the new prospects that you recommend. I am including a link that you can send to prospective members. This link explains a little more about ASA and what we do. If I can be of any help, please don’t hesitate to contact me.

As always, your support of ASA and our efforts on our member’s behalf is greatly appreciated.

Sincerely,

Carol Floco, CEO

American Subcontractors Association of Arizona, Inc.

(602) 274-8979

www.asa-az.org

ASA Election Night

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Early Golf Registration Extended to April 4, 2016

Last year’s Golf Tournament and Fundraiser, in support of the Ben C. Griggs Memorial Scholarship, was a huge success! In response to such a successful event last year, this year’s ASA of AZ Golf Tournament and Fundraiser will take place on Thursday, April 21, 2016 at the Legacy Golf Resort.

Registration begins at 6:30AM and the shotgun start at 7:30AM. Register on or before April 4, 2016 for early bird discounts. Register online at www.asa-az.org, via fax to (602) 277-4505, or by mail: ASA of AZ, 4105 N. 20th St. #230, Phoenix, AZ 85016. Click here for a downloadable PDF form.

Golf Tournament & Fundraiser

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Associations Call on FHWA to Include Surety Bond Requirements for P3s

ASA joined The Surety & Fidelity Association of America and the National Association of Surety Bond Producers in calling on the Federal Highway Administration to include in its proposed rule related to the construction manager/general contractor method of contracting that surety bonds be provided on projects financed through public-private partnership agreements. The three associations recommended that “FHWA should follow the bonding requirements that have been a longtime feature of the U.S. Department of Transportation’s regulations on federal grants for state highway construction projects.” DOT’s rules currently provide that “[t]he federal agency awarding a grant may accept the state bonding policy applicable to the person or entity receiving the grant if the federal agency determines that policy adequately protects the federal agency’s interest.” The associations emphasized that“ the payment bond guarantees that covered subcontractors, suppliers and laborers on the job will get paid. Many subcontractors and suppliers on public works projects are small contractors that have fewer resources to absorb an event of non-payment.”

Published on September 3, 2015 by the American Subcontractors Association’s asatoday Vol. 17, No. 36 “The Weekly National News Bulletin for ASA Members Only”

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Get the Tools and Resources Your Firm Needs to Succeed in Today’s Business World

ASA/FASA Education Catalog 2015-16

Get the Tools and Resources Your Firm Needs to Succeed in Today’s Business World

The American Subcontractors Association and the Foundation of ASA are providing construction subcontractors with the latest strategies and ideas to manage their businesses with videos-on-demand, webinars, and other resources on such topics as technology, retainage, mechanic’s liens, negotiation strategies, cash flow, and human resources.

The 2015-16 edition of the ASA/FASA Construction Subcontractor’s Education Catalog showcases the newest education programs (live and recorded), books, and downloadable manuals that ASA and FASA offer to help subcontractors meet the demands of working in today’s construction industry.

ASA and FASA have developed dozens of education programs and products for subcontractors, including these new videos-on-demand:

The new catalog also highlights the ASA/FASA Education Webinars Series for 2015-16. These webinars will take place from 12:00 p.m. to 1:30 p.m. Eastern time on the second Tuesday of the month. The registration fee for each webinar is $99 for ASA members and $179 for nonmembers.

In addition, the ASA/FASA education catalog spotlights the ConsensusDocs 700 series of contract documents for subcontractors. ASA is a founding member of the ConsensusDocs coalition, which publishes a library of 100-plus contracts and documents that incorporate best practices and fairly allocate risk to help reduce costly contingencies and adversarial negotiations. ASA members can use the promotional code ASA100 to receive a special member discount off these ASA-endorsed documents when ordering online via the ConsensusDocs Web site https://consensusdocs.org/QuickPurchase.

ASA Logo

© 2015
American Subcontractors Association, Inc.
1004 Duke Street
Alexandria, VA 22314

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Stay Competitive and Reduce Business Risks with ASA Webinars

 

Stay Competitive and Reduce Business Risks with ASA Webinars

12:00 p.m. – 1:30 p.m. Eastern Time / 9:00 a.m. – 10:30 a.m. Pacific Time
Second Tuesday of the Month Beginning in September!

AIC Constructor Certification Continuing Professional Development Credits: 1.5

In today’s competitive construction marketplace, subcontractors need to learn and hone business strategies that keep them competitive and reduce their risks. The American Subcontractors Association’s 2015-16 webinars can help subcontractors improve their businesses through educational training on such topics as contract negotiation, risk management, retainage, cash management, productivity, employment regulations, technology, and more:

Sept.15, 2015 — “The Subcontractor’s Guide to a Fair Lien Waiver Process” presented by Scott Wolfe Jr., zlien, New Orleans, La.

Oct.13, 2015 — “Cash Management for Subcontractors” presented by Aaron Faulk and Justin Fisher, Moss Adams LLP, Everett, Wash.

Nov. 10, 2015 — “Implementing Technology for the Jobsite: Turning Refusers into Adopters” presented by Doug Chambers, FieldLens, New York, N.Y.

Dec. 8, 2015 — “Employment Law Changes and How They Affect Screening and Hiring Practices” presented by Jamie Hasty, SESCO Management Consultants, Richmond, Va.

Jan. 12, 2016 — “The War for Talent Drives Construction Pay Higher: Pay Trends in the Construction Industry” presented by Mike Rose, FMI, Phoenix, Ariz.

Feb. 9, 2016 — “Negotiating Retainage” presented by Eric Travers, Esq., Kegler, Brown, Hill & Ritter, Columbus, Ohio.

April 12, 2016 — “The Payment Dance in the Construction Industry” presented by Scott Wolfe Jr., zlien, New Orleans, La.

May 10, 2016 — “Websites, Email, Social Media and Your Domain Name” presented by George Minardos, .BUILD, Santa Monica, Calif.

June 14, 2016 — “Damages for Lost Labor Productivity” presented by James Yand, Miller Nash Graham & Dunn, Seattle, Wash.

Interactive Format: View the webinar on your computer screen, or project it on a wall/screen in your conference room. Ask the presenter questions in live chat.
Listen to the presenter on your headset or dial in. Use your computer’s speakers or a speaker phone so everyone in the room can listen.

Pricing:

$99 for members of the American Subcontractors Association. $179 for non-members.

Registration Fee Includes:

Access with one Internet connection.

A link to view an audio-visual recording of the webinar (emailed to you after the live program).

A link to a printable ASA Certificate of Completion recognizing completion of this program (emailed to you after the live program). Print the certificate for each person who participated at your location!

Learn more under “Register for an Event” on the ASA Web site.

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DOL Issues Enforcement Guidance on Misclassification of Employees

DOL Issues Enforcement Guidance on Misclassification of Employees

On July 15, the U.S. Department of Labor’s Wage and Hour Division issued guidance on the enforcement of the law prohibiting the misclassification of employees as independent contractors. The Application of the Fair Labor Standards Act’s “Suffer or Permit” Standard in the Identification of Employees Who Are Misclassified as Independent Contractors (Administrator’s Interpretation 2015-1) analyzes how the Fair Labor Standards Act’s definition of “employ” guides the determination of whether workers are employees or independent contractors under the law. The WHD guidance emphasizes that most workers are employees under the FLSA’s broad definitions. It discusses the breadth of the FLSA’s definition of “employ,” as well as provides guidance on the “economic realities” factors applied by courts in determining if a worker is indeed an employee. The document includes questions that an employer should consider in determining whether an individual is an employee rather than independent contractor, including:

-Is the work an integral part of the employer’s business?
-Does the worker’s managerial skill affect the worker’s opportunity for profit or loss?
-How does the worker’s relative investment compare to the employer’s investment?
-Does the work performed require special skill and initiative?
-Is the relationship between the worker and employer permanent or indefinite?
-What is the nature and degree of the employer’s control?

WHD says the factors should not be analyzed mechanically or in a vacuum and no single factor, including control, should be over-emphasized. Instead, each factor should be considered in light of the ultimate determination of whether the worker is really in business for him or herself (and thus is an independent contractor) or is economically dependent on the employer (and thus is its employee). The document also includes several short examples that are specific to the construction industry. Additional guidance on misclassification is available on the WHD’s Web page: Misclassification of Employees as Independent Contractors.

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State Legislatures Continue to Act on Construction Bills

State Legislatures Continue to Act on Construction Bills

With only four state legislatures in regular session, two states in special session and two states in extended session, governors continue to approve laws that impact construction subcontractors, specialty trade contractors, and suppliers. The following are just a few of the laws recently enacted:

Connecticut: S1502, the state budget, includes a provision concerning self-performance by a construction-manager-at-risk. Specifically, the new law allows the contractor to self-perform if the government determines that the CM can perform the work more cost-effectively than a subcontractor. All work not performed by the CM must be approved by trade subcontractors selected by a process approved by the government.

Delaware: HB145 raises the prevailing wage contract threshold for new construction and for alterations, repairs, and renovations from $15,000 to $45,000. The new law also establishes a Prevailing Wage Advisory Committee that is tasked with advising the General Assembly as to how the prevailing wage survey can be improved or whether the survey should be eliminated. The committee is to provide a report to the General Assembly by Jan. 20, 2016.

Hawaii: HB391 relates to government public works construction contracts. Specifically, the new law provides that overtime compensation be not less than the laborers or mechanics basic hourly rate of pay plus fringe benefits and that if the Department of Labor and Industrial Relations determines that the prevailing wage is determined by a group represented by collective bargaining, then the overtime and any other premium shall be at the same rates set by the collective bargaining agreement.

Illinois: SB718 amends Elevator Safety Act by providing that the Office of the State Fire Marshal shall authorize the issuance of elevator contractor’s licenses, elevator mechanic’s licenses, inspector’s licenses, and inspection company licenses. The new law also provides that all applications for a contractor’s or inspection company license shall contain a copy of the Certificate of Authority to transact business in the State from the Secretary of State for corporations registered in another state, a certificate of good standing for corporations registered in Illinois, and an assumed name certificate issued by the Illinois county in which the business is located for a sole proprietor or partnership.

Michigan: HB4052 prohibits municipalities from requiring businesses to pay wages, benefits, or provide sick days exceeding federal or state requirements.

North Carolina: HB255 reforms building code enforcement to conform work in progress inspection authority to recently enacted inspection limitations; requires the building code council to study the alternate methods approval process; clarifies the definition of official misconduct for code officials; eliminates mandatory plan review for residential structures; raises the threshold for requirement of a building permit; and creates the building code council residential code committee.

Rhode Island: HB5932 provides that notice under the provisions of the mechanic’s lien law may be provided either as incorporated in a written contract, or a separate document incorporated in a written contract prior to or within ten (10) days of commencing physical work on the property, or upon delivery of construction, erection, alteration, or repair materials for the property.

Rhode Island: SB968 eliminates the requirement that notice under the provisions of the mechanic’s lien law be provided within ten (10) days of commencing physical work on the property, or upon delivery of construction, erection, alteration, or repair materials for the property, by authorizing the notice to be given at any time prior to commencing work or delivery of materials, either incorporated conspicuously in a written contract or sent by certified mail.

Washington: S5997 provides that the joint transportation committee must convene a design-build contracting review panel to examine the department’s implementation and use of design-build contracting.

Wisconsin: S21, the state budget bill, includes a provision that requires that any contract entered into by the state for the construction, repair or modification of a public works or public improvement project must contain a provision that the contractor will use materials that are manufactured in the United States in the performance of the contract.

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Member Tip “Retirement Effectiveness”

Retirement effectiveness: Written by: Jan Duncan, Sagicor Life Insurance Company

Standard retirement plans such as 401-k, profit sharing, pension, etc…. are beneficial and well known but many business owners are not aware of the many areas of the US Tax Code which allow for much greater owner retirement contributions, safer investments options with competitive gains, tax free with drawl options, flexible contribution vehicles, business transfer (sale) tax free, enhanced creditor protection for personal and business assets, vehicles to avoid inheritance taxes for 5, 10, 20 or more generations and more!

Don’t become complacent when it comes to retirement plan reviews. Even if you feel that your plan is the best available out there, have it reviewed by a specialist and solicit their ideas and benefits if they do not agree.
We approach retirement planning and for that matter, all benefits, from a very different perspective! Our plans are called ‘Employer (not employee) benefit plans’ for the very reason that 98% of all retirement and benefit plans consider the employee’s first and ‘oh by the way’, you Mr. Owner, are an employee too so you get to participate as well!

Build a plan which is designed to accomplish the owner’s goals and objectives first and then include the employees or implement another plan designed for them so that everyone has the opportunity to participate if they desire.

If you would like to discuss our approach to the above and review some alternatives or options which might improve your situation, please contact us at the number below.

Jan Duncan, Sagicor Life Insurance Company
480-251-5665

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What’s the Deal with Drones?

What’s the Deal with Drones?

Article written by: Matthew Snowden, Minard-Ames Insurance Services LLC

Many contractors are asking “What’s the deal with drones?” If what they mean is: “What’s the risk of taking photos of a job with a drone?” then there is no single way to answer their question. Some follow-up questions like these may be helpful:

  • Who owns the drone: the company, a third party, or you personally?
  • Who is operating it and under what supervision/authority?
  • Who has control of the device away from the jobsite?
  • What information can the device capture and where is that information stored?
  • Does your insurance policy consider the drone an aircraft?
  • How will insurance respond in the event someone claims an invasion of privacy due to a drone?
  • Most importantly: What concerns are causing you to ask this question?

There is no short answer.  I have a successful client who imports and sells them, which gives me the opportunity to work through various risk management scenarios and fly one myself. Many fly high enough to easily crash into a plane leaving Sky Harbor. They could disappear in the bright daytime sky. They’re chalk full of fun controls and displays that may distract an operator. Batteries could die resulting in drones falling out of the sky. The list of “what ifs” is long and potentially entertaining. On the other hand, drones have many productive commercial applications that we’ll see with increasing regularity as issues like these are addressed:

  • Legal issues: Is the use of a drone legal in any particular scenario and what risks are being assumed?
  • Privacy issues: Does the operator have permission to capture images of everything within lens-shot?
  • Safety issues: What happens if this thing flies into someone or falls out of the sky?
  • Insurance issues: What is protected, what should be protected, what can be protected, and at what cost?

If you are considering jumping into the game, don’t assume you have insurance coverage or that it’s legal. It’s imperative that you consult with your attorney and your insurance agent about your plans. From an insurance perspective, it’s worth seeking advice on coverage that expressly addresses drone-related activities including but not limited to injury to third parties, damage to the drone as well as to third party property, invasion of privacy and data security issues.

The insurance industry is just beginning to try and get a handle on all of the risks and liabilities associated with the use of drones, as they know they are not going away.  This means that coverage will be slow in evolving and those first in the market, will be charging a lot (as we have seen).

If you have questions, please feel free to give Matthew Snowden a call at (602) 273-1625 or email him at msnowden@minardames.com

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ASA Board Approves Polices on Federal Construction Procedures

The ASA Board of Directors approved two public policy recommendations made by ASA Chief Advocacy Officer E. Colette Nelson during a meeting on Oct. 22 in Denver, Colo. One recommendation was to support legislation “to amend the Federal Arbitration Act so that in states with industry-specific venue laws, the arbitration can be held in the state and according to the State’s own laws, even if the contract calls for arbitration.” Such law would simply allow an arbitration to proceed locally where local parties would have a fair opportunity to present their witnesses and evidence. The second recommendation was to support federal legislation or regulation “to assure timely action on change orders for construction.” The proposed legislation would establish parameters for notice, approval and payment of change orders on federal construction contracts. Nelson noted that “although both of these legislative initiatives are federal, they would set a precedent for other public and private construction.”

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