Subcontractors news Bringing New York’s Union Subcontractors Together to Build a Stronger Construction Industry
IN THIS ISSUE
2 President’s Message 3 Lack Of Subcontractor
Participation May Have Severe Impact On The School Construction Authority’s Owner Controlled Insurance Program
6 STA Hosts Annual Golf Outing
8 Save the Dates: Fall General Membership Meetings
10 Cofed “Redux” (#2): Avoid Forfeiting Valuable Claims And Other Rights In Extension Of Time Requests By Henry L. Goldberg, Managing Partner, Goldberg & Connolly and STA Legal Counsel
13 Ronsco, Inc. Honored
With AWCI’s 2013 Excellence In Construction Quality Award
16 E-J Electric’s J. Robert
Mann Chosen As Finalist For Ernst & Young 2013 Entrepreneur Of The Year Award
19 Association Of Master
Painters & Decorators Of New York Highlights Member Premium Painting & Decorating
21 Mayor Bloomberg
Announces Launch Of New “Water Street Pops!” Program To Revitalize Water Steet Corridor In Lower Manhattan
July / August 2013
Lack Of Subcontractor Participation May Have Severe Impact On The School Construction Authority’s Owner Controlled Insurance Program
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STA Subcontractors News
P r e sid e nt ’ s M e ssag e
I hope you have all had an enjoyable summer. I would like to thank all of our members who participated in our Annual Golf Outing at the Cherry Valley Club on June 24, 2013 and I look forward to our events coming up this fall.
Most of our members should have recently received a letter outlining changes to the School Construction Authority’s Owner Controlled Insurance Program (OCIP). Included in the changes is the possible discontinuation of the OCIP, which implies that subcontractors would need to provide their own insurance starting January 1, 2014. To assess the significance of these changes, the SCA has requested that subcontractors fill out a short, twominute survey.
As of the July 22, 2013 deadline, only 13% of recipients have completed the survey. As you may already know, the SCA’s OCIP currently provides Worker’s Compensation, General and Excess Liability, Contractor’s Pollution Liability, and Builders Risk Coverage to all those working on SCA proposals.
Your participation in this survey is extremely important. The SCA has extended the survey deadline to August 30, 2013 and it is crucial that our members provide feedback. The survey can be found here: www.surveymonkey.com/s/9zmg777.
We look forward to seeing you at our upcoming events this fall.
Sincerely, Jerry Liss
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July / August 2013
Lack Of Subcontractor Participation May Have Severe Impact On The School Construction Authority’s Owner Controlled Insurance Program
On July 9, 2013 over 600 subcontractors in New York were sent a letter advising them on imminent changes to the School Construction Authority’s Owner Controlled Insurance Program (OCIP). These changes would include the possible termination of the OCIP, which means subcontractors would need to furnish their own insurance starting on January 1, 2014. To measure the impact of these changes, the SCA asked subcontractors to weigh in by filling out a survey, which would take approximately two minutes to complete. As of July 22, 2013 – the survey deadline – 13% of subcontractors who received the letter had completed the survey. The result of such inaction can be staggering as the SCA’s OCIP currently provides Worker’s Compensation, General and Excess Liability, Contractor’s Pollution Liability and Builders Risk Coverage to all contractors working on SCA projects. Subcontractor cooperation in this matter is imperative. The SCA has extended the survey deadline to August 30, 2013 and it is important that every subcontractor provide their feedback. The survey can be accessed at www.surveymonkey.com/s/9zmg777.
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STA Subcontractors News
STA Hosts Annual Golf Outing
The Subcontractors Trade Association hosted our Annual Golf Outing at the Cherry Valley Club on Monday, June 24, 2013. We would like to thank all of
our members who participated in this event and are pleased to announce this year’s winners:
Longest Drive
Team Low Gross
Team Low Net
Christine Boccia Randy Rifelli
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First
Patrick Gallagher Jim Kahn John Lagana Yale Stogel
Dan DeVita John Glavinic Gerald Maric Damir Penava
Second
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Jake Bidosky Jerry Liss Randy Rifelli David Sherwin
Andrew Drazic Tom Nagala Scott Rives Ben Tockarshewsky
Closest to the Pin Jake Bidosky - 2’ 4 ½”
Closest to the Line David Sherwin - 2’
Individual Low Gross John Lagana
Low Net James McCall
July / August 2013
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July July // August August 2011 2011
Save the Date: Fall General Membership Meeting
The STA will hold our next General Membership Meeting on Wednesday, September 25, 2013. The meeting will feature a general contractor and construction manager roundtable to address member questions and discuss current projects and opportunities for STA members. Our panel of speakers will provide a forecast on the balance of 2013 and the new projects on the
horizon for 2014. They will also address the issue of prompt payment and present best practices that subcontractors can employ to speed up the rate of getting paid in full for work completed. Additionally, speakers will provide an update on current insurance practices.
July / August 2013
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STA Subcontractors News
Cofed “Redux” (#2): Avoid Forfeiting Valuable Claims And Other Rights In Extension Of Time Requests By Henry L. Goldberg, Managing Partner, GoldBerg & connolly and STA Legal Counsel
We continue to sound the alarm about the increasingly widespread use by public agencies of C.O.F.E.D.s (“Contractor Forfeiture Enhancement Devices”). The drumbeat of this campaign will warn of the land mines to which we have seen contractors and subcontractors repeatedly, and tragically, fall victim.
connection with this [the parties’] contract, except for claims affirmatively reserved in the written EOT request. Any claims that are not identified in the EOT request are deemed waived. This is, by its very nature, a classic example of a COFED and it is designed to trap the unwary.
In this article, we alert you to New York City’s efforts to have contractors waive valuable claim rights through the use of its standard extension of time (“EOT”) request that City agencies routinely require contractors to execute in order to avoid the imposition of liquidated damages.
The hallmark of a COFED is its unnecessary or gratuitous quality. Clearly the waiver of all contract rights is hardly necessary for the City to analyze an EOT request. There is simply no justification for the inclusion of this waiver language.
The New York City Standard Construction Contract’s Article 13 provides that a contractor’s EOT request shall include a statement that the contractor waives all claims except for those specifically delineated in the contractor’s EOT request. The contractor, in a detailed bill of particulars, must include specific details concerning the claims being reserved. City agencies have previously provided contractors with EOT forms that contain waiver and release language. What is new is that they are now taking these waivers seriously. A new generation of City attorneys and contract administrators are increasingly and shamelessly attempting to literally apply this dangerous language. All mayoral agencies routinely require contractors to state in EOT requests that they “agree” to waive and release any and all claims including, but not limited to, damages for delay or any other cause whatsoever, which we may have against the City of New York in
Moreover, the standard NYC EOT request form requires contractors to provide, per Contract Article 13.8.2: “the nature of each alleged cause of delay in completing the work,” “the date upon which each such cause of delay began and ended,” and “the number of days attributable to each such cause.” Again, this level of detail should not be necessary at this stage of a project and in the context of an EOT request. More typically such details are reserved for an end-of-project formal claim. City agencies are now requiring a level of detail that may even exceed what is actually known at the time of the EOT request, particularly with regard to damages. The language in the standard NYC EOT request form also purports to preclude contractors from entering into evidence at any subsequent proceeding any papers or project records that underlie the delays set forth in an EOT request. Thus, a contractor must provide evidence to support its EOT request, but if it does so, it cannot use such evidence (business records) again in any other proceeding! This is simply
July / August 2013
ridiculous, unenforceable and fundamentally unfair. Why would a public owner even attempt to impose such a constraint? Be aware that City agencies are now demanding that contractor personnel strictly follow EOT request forms, without deviation, and will attempt to reject non-conforming requests. Push back and insist upon including reservation of rights language. Your reservation of rights language should also include “catch-all” provisions reserving the right to assert any and all claims and seek damages relating to delays, extra or additional work and events that may arise in the future (e.g., between substantial and final completion). It is also crucial to reserve your rights to use any and all project records in any future claim proceeding, in light of the form’s language that absurdly attempts, as indicated above, to preclude the subsequent use of such critical evidence. Understand that field personnel for the City will insist on the precise “magic waiver language” as a condition of granting the EOT request. At that personnel level, however, the EOT request form is simply a “check list” item that must be complied with without modification; there is no discretion. Do not accept
a representation that any deviations or qualifications are “impossible.” Ultimately, you may have to have counsel address these issues with attorneys for the particular City agency. G&C COMMENTARY: Routine EOT requests can and are being used as COFEDs. Contractors must be mindful of the legal significance of the documents they sign and the possible consequences of submitting an EOT request that does not fully reserve, in sufficient detail, all delay-causing events and impacts, or claims for extra or additional work. Keep in mind that when used as a COFED, the EOT request is not simply an application for an extension of time to avoid liquidated damages. It is being used aggressively as an opportunity by the City to foster the waiver of your valuable rights. There is no reason for this other than to enhance contractor forfeitures. Reserve your rights or lose them. Mr. Goldberg may be reached by email at hlgoldberg@goldbergconnolly.com or by telephone at (516) 764-2800. © Goldberg & Connolly
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July / August 2013
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Ronsco, Inc. Honored With Awci’s 2013 Excellence In Construction Quality Award Ronsco, Inc. has been honored with the Association of Wall and Ceiling Industry’s (AWCI)’s Excellence in Construction Quality Award, a national awards program designed to recognize excellence in construction quality in the face of complicated and challenging projects. Ronsco received this honor in the “Contractor’s Contract is Less Than $1 Million” category. The criteria for the Excellence in Construction Quality Award included wall and ceiling projects completed by AWCI members that demonstrated high degrees of difficulty, innovative design, prompt duration of the project, and creative use of materials. Ronsco serviced the contracting for the awarded project for CA Technologies, a leading independent computer software company in New York, and was involved in all coordination, design, and detail consideration. Ronsco’s awarded project is a commercial office space noted for its innovative design and superior construction quality. The office space consists of meeting rooms and conference rooms that contained curved walls and radiused ceiling coves, which presented a challenge in providing sound structure as well as critical natural and artificial lighting. Ronsco met the challenges of this project by using creative materials and meticulous craftsmanship, and was able to complete the project in a little over three months.
Ronsco is a full-service carpentry contracting company dedicated to meeting a client’s drywall, acoustical and carpentry needs. Ronsco’s team is trained in the latest technology and green construction practices, ensuring cutting edge solutions for complex commercial, institutional, retail, banking, hotel, residential and mixed-use construction assignments. Since 1960, Ronsco’s clients have relied on the most knowledgeable management team in the industry, a talented union workforce, an unparalleled dedication to quality and a commitment to safety. For more information visit www.ronscoinc.com or call (212) 627-0500.
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E-J Electric’s J. Robert Mann Chosen As Finalist For Ernst & Young 2013 Entrepreneur Of The Year Award J. ROBERT MANN JR.
Ernst & Young LLP announced that J. Robert Mann, Jr. of E-J Electric Installation Co. was a finalist for the Ernst & Young Entrepreneur Of The Year® 2013 Award in the New York region. The awards program recognizes highgrowth entrepreneurs who demonstrate excellence and extraordinary success in such areas as innovation, financial performance and personal commitment to their businesses and communities. These finalists were selected by a panel of independent judges. Now in its 27th year, the Entrepreneur Of The Year® Program has expanded globally to recognize company builders in over 140 cities and in more than 50 countries throughout the world. J. Robert Mann, Jr. — E-J Electric Installation Co. J. Robert Mann, Jr. was recognized for enhancing E-J Electric Installation Co.’s success and reputation as the oldest leading electrical contractor in the United States. He has been recognized for innovative thinking and leadership in the industry. This was furthered by maintaining a superior reputation of integrity and honesty, and cultivating the recognition of leading owners and builders. His innovative thinking has energized the next generation of E-J leaders and he has also inspired and formed the National Electric Roundtable. The expansion of E-J’s divisions and services has given the company a commanding role in the industry. J. Robert Mann, Jr. has strived to take social
responsibility with his donations to many philanthropic organizations while also assisting in the management and furthering of educational and academic groups. About Ernst & Young’s Entrepreneur Of The Year® Award Ernst & Young’s Entrepreneur Of The Year® award is the world’s most prestigious business award for entrepreneurs. This unique reward recognizes the significant contributions of entrepreneurs who inspire others with their vision, leadership and achievement. Sponsors Founded and produced by Ernst & Young, the Entrepreneur Of The Year® Awards are nationally sponsored by SAP America and the Ewing Marion Kauffman Foundation. In New York, local sponsors include Marsh Inc.; Merrill Corporation; Goodwin Procter LLP; Empire Valuation Consultants; HSBC; Scherzer International; Solomon Edwards Group; Cooley; Murray Devine; DLA Piper; Withum Smith + Brown; Orrick; Herrington & Sutcliffe and Marks Paneth & Shron.
For more information about E-J Electric, visit www.ej1899.com or call (718) 786-9400.
July / August 2013
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Park Avenue Is Pleased to Announce the Addition of ASSA ABLOY to Our Door and Hardware Line Featuring Locks & Hardware
Contact Park Avenue for All Your Commercial Door and Hardware Needs Park Avenue Building & Roofing Supplies, LLC 2120 Atlantic Avenue | Brooklyn, NY 11233 Tel: (718) 403-0100 | www.parkavebuilding.com
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July / August 2013
Association Of Master Painters & Decorators Of new york Highlights Member Premium Painting & Decorating
Premium Painting & Decorating is led by founding partners David Stross and Ralph Lanza, both of whom have tremendous experience in the industry. Prior to forming their company, the two supervised multimillion dollar projects for a number of high-profile clients and organizations throughout New York City. The company offers an extensive selection of the industry’s most sophisticated decorative solutions for commercial office space and hotels, including Electrostatic, Scuffmaster and Polymix spray finishes; gold, silver and copper leaf special finishes; Venetian and Marbelux plaster work; as well as water proofing, wall coverings and fabric-wrapped panels, among other cutting-edge technologies. Construction half page-Color.pdf
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Premium Painting & Decorating employs an expert team of highly skilled and trustworthy union painters and artisans whose vast knowledge and expertise have made the company a leading service provider among the commercial and hotel industry, educational institutions, healthcare organizations and hospitals, real estate developers and entertainment complexes, among others. Known for superior workmanship and service, Premium Painting & Decorating has earned a reputation as one of the industry’s most dedicated and reliable expert finishing providers. For more information about Premium Painting & Decorating, please visit www. premium-painting.com.
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Mayor Bloomberg Announces Launch Of New “Water Street Pops!” Program To Revitalize Water Steet Corridor In Lower Manhattan Series of Daily Events, Programs and Concessions Will Activate Privately-Owned Public Spaces in Major Commercial Corridor Damaged by Hurricane Sandy Mayor Michael R. Bloomberg and the New York City Economic Development Corporation announced the launch of “Water Street Pops!” – a series of activities and special events throughout the summer of 2013 which are designed to activate the Water Street corridor in Lower Manhattan. The various programs and concessions will take place in the public plazas and arcades along Water Street, attracting local employees, residents and visitors, leading to an increase in economic activity throughout the area. All events are free and open to the public. “The neighborhood surrounding Water Street has grown more and more lively over the past decade – exactly the opposite of what many predicted after 9/11,” said Mayor Bloomberg. “Even as Lower Manhattan has faced another challenge – the recovery from Hurricane Sandy – we are working to make sure it bounces back stronger than ever.” “The announcement of programmed events along Water Street’s Privately Owned Public Spaces exemplifies what a coordinated effort by government agencies and businesses can accomplish,” said City Planning Commissioner Amanda M. Burden. “Our zoning changes and this series of activities build on the City’s many efforts to make Lower Manhattan a 24/7 destination and enhance an important pedestrian link to the waterfront. Amenities such as tables and chairs, food kiosks and performances will activate and rejuvenate this area, attracting visitors and complementing activity at the Seaport and East River Waterfront Esplanade.”
“‘Water Street Pops!’ is an incredible collaboration between local downtown businesses and cultural organizations, non-profits and corporate partners – all coming together to support the vibrancy of the Water Street corridor,” said Sarah Berman of The Berman Group, a private firm selected by NYCEDC to manage the “Water Street Pops!” series. “As a New York Citybased WBE, it is a privilege to work with the Mayor’s Office and NYC EDC to bring valuable programming to the Lower Manhattan community.” Water Street is one of Lower Manhattan’s most important commercial corridors. Spanning more than half of a mile from Whitehall Street to Fulton Street, it is flanked by over 19 million square feet of Class A and Class B+ office space. It is home to some of Lower Manhattan’s largest companies – such as Standard & Poor’s and Emblem Health – as well as countless small and mid-sized firms, which combined employ nearly 100,000 people. For more information on “Water Street Pops!” or for a full schedule of events, visit www.waterstreetpops.com.
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Subcontractors News 1430 Broadway - Suite 1600 New York, NY 10018 T: 212.398.6220 F: 212.398.6224 e-mail: subcontractorstrade@verizon.net website: www.stanyc.com Officers Jerry Liss, President Robert J. Ansbro, 1st Vice President Robert Weiss, 2nd Vice President Peter Cafiero, Treasurer John A. Finamore, Secretary Ron Berger, Executive Director Henry Goldberg, Legal Counsel Active Past Presidents Greg S. Fricke, Jr. Alan Nathanson (Honorary) Lawrence Roman Arthur Rubinstein Robert Samela Gary Segal (Honorary) Lawrence Weiss Scott Rives Board of Directors JOSEPH AZARA JR. C.D.E. Air Conditioning CHRISTINE BOCCIA Donaldson Traditional Interiors DAN J. DEVITA Penava Mechanical Corp.
JOHN DIERKS Dierks Heating Company, Inc. ANDREW DRAZIC ATJ Electrical BRENT FLEISHER Environet Systems JAMES FLYNN Independent Temperature Control PATRICK GALLAGHER BP Mechanical Corp.
Upcoming events executive Committee Meeting Wednesday, September 4, 2013 8:30AM Board Meeting Tuesday, September 10, 2013 5:30PM General Membership Meeting Wednesday, September 25, 2013 5:30PM
CRAIG GILSTON Gilston Electrical Contracting GLORIA KEMPER Recon Construction Corp JOSEPH LEO Atlantic Contracting & Specialties, LLC STEPHEN LONDON Commercial Electrical Contractors JEFFREY MILAD Milad Contracting Corporation RANDY RIFELLI United Iron, Inc. GUY VANDE VAARST Empire System Solutions
O U R M I S S I O N S TAT E M E N T trengthen New York’s construction industry each member firms to increase business opportunities dvocate to preserve subcontractors’ rights
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