ASA Welcomes New Austin Chapter

On January 12, 2023, the American Subcontractors Association welcomed a new chapter into the fold.

Austin by the Numbers

ASA of Austin Texas launched in style with a celebration at the Central Machine Works Brewery. With more than 150 people in attendance, Austin proved once again that things are bigger in Texas!

Rebecca East, the new Executive Director of this newest ASA chapter, was thrilled to see so many people welcoming her and the businesses eager to join this chapter. Richard Bright, COO of ASA, was certain he’d never seen such support for a new chapter, exclaiming, “This is just incredible! The support and enthusiasm from this region is stupendous!” Rebecca added, “I’m so excited to get started and continue connecting with Austin’s subcontractors.”

Other executive directors (Jennifer Swinney of ASA San Antonio and Beverly Reynal of ASA N. Texas) and board members were there, as well as the Texas Construction Association - all showing their support and encouragement to the new chapter as it blasts into the ASA stratosphere! More than 15 board members are planning great things for this chapter, and if you are a subcontractor or supplier located in Austin, you should come and check us out!

On behalf of all ASA members, Welcome, Austin!

TM

Subcontractor Legal Defense Fund

Just One of Many Aspects That Makes ASA So Special

The courts are a key battleground in the fight for subcontractor rights. The American Subcontractors Association’s (ASA) Subcontractors Legal Defense Fund (SLDF) supports critical legal activities to protect the interests of all construction subcontractors.

The funds invest in precedentsetting litigation to establish subcontractors’ rights across the country.

Our ASA members and sponsors provide the generous support that keeps this fund active on the cases carefully selected for representation by our subcontractor community. Robert Abney, Senior Vice President of F.L. Crane & Sons in Mississippi, has been a long-time and consistent backer of the Subcontractor Legal Defense Fund, along with a myriad of other high-profile subcontractors across the country.

How long has your company been supporting the SLDF?

We have contributed to SLDF for over 20 years, but we have been more intentional over the last six.

What was the primary reason you selected the Fund for support?

A lobbyist once explained that the easiest and quickest ways to get change in the law was through judicial precedent. Lobbying for laws can be expensive and take years to get the right people to pass a bill. Knowing this, I got involved in the SLDF task force. I quickly realized the SLDF task force is full of brilliant people wanting to leave the industry better than we found it, making it one of the easiest & best decisions to join and serve.

Are there any particular cases that come to mind that especially demonstrated to you the importance of the SLDF?

Frankly, they are all special when you really think about it. The cases the SLDF takes on have great significance for every contractor. The SLDF committee takes great care to select the cases that can shape positive outcomes for subs.

What would you say to ASA members and other potential SLDF donors who may be asking why it is important to keep these cases funded?

Nowhere else can you influence a case with such a limited cost with best co-defendants and world class representation. It is imperative that we, ASA, as the voice for all subcontractors, champion what is right and fair for the subcontracting industry.

The Contractor’s Compass is recognizing excellence in ASA’s ranks. Every month we are highlighting the activities, achievements, and actions of ASA members that might inspire others. Do you have something you want to share? Send us an email at communications@asa-hq.com.

GOV'T RELATIONS 2022 REVIEW

Despite the ever-changing political, regulatory, and legislative landscape, the ASA Government Relations Team wanted to briefly update you on our 2022 legislative successes.

Though last year proved to be challenging, we offer thanks to our Government Relations Committee (GRC) for their tireless efforts in advocating for our members and industry as we worked to address your 2022 Legislative Priorities.

Recently Enacted Laws impacting ASA

• Inflation Reduction Act of 2022 signed into law, August 22, 2022. • $3.45 Trillion in energy and climate programs • The CHIPS and Science Act of 2022 signed into law August 9, 2022 (semiconductors and scientific research) • Oceans Shipping Reform Act signed into law on June 16, 2022 (ports’ supply chain issues) • Implementation of the Infrastructure

Investment Jobs Act (IIJA) signed into law on November 15, 2021.

ASA’s 2022 Legislative Priorities • H.R. 8273, the “Small Business

Payment Performance Act” (ASA drafted legislation) • On July 14, 2022, the House included H.R. 8273 in the FY23 National Defense Authorization Act (NDAA) • PRICE Act (ASA and AGC drafted legislation) • Opposition to Federal Gas Tax

Holiday • Infrastructure Package

Implementation • Introduction of Comprehensive

Federal Procurement Legislation: change order and statute of repose reform, pre bid transparency in federal contracts • P3 Bonding Water Transportation

Projects

The FY23 National Defense Authorization Act (NDAA) included ASA supported procurement policies regarding progress payments, cash flow, military base access, PFAS, architectural and engineering services, and wastewater assistance. Our top priority for this year’s bill was change order reform, but unfortunately the final bill did not address such reform. In July, Reps. Peters (D-CA) and Stauber (RMN), the co-chairs of the Congressional Procurement Caucus, addressed change order reform by introducing H.R. 8273, the “Small Business Payment Performance Act" This legislation was

Photo taken at the White House Holiday Reception on Monday, December 12, 2022

included as an amendment to the House version of the FY23 NDAA and it would assist small business construction contractors receive timely payment for change orders.

Construction firms of all sizes, but especially small businesses, have had to weather the effects of the pandemic and soaring construction materials costs. This commonsense and bipartisan legislation would help ensure that our nation’s small business construction contractors do not go bankrupt waiting to be paid for work the federal government ordered them to perform. We continue to make change order reform a priority in the 118th Congress.

Additionally, on September 23, the Federal Acquisition (FAR) Council released the final rule implementing an ASA backed reform that will bring unprecedented transparency and accountability to federal agencies’ change order processes. ASA, along with the Construction Industry Procurement Coalition (CIPC), successfully led the legislative effort to include these reforms in the FY18 NDAA responsible for this final rule.

Effective on October 28, this regulation applies to any federal solicitation for small business construction contracts and will require agencies to:

• Publish their policies and procedures for processing change orders (REAs); • Begin to track the time it takes the agency to definitize change orders; and • Publish this data on those solicitations and on a public website.

The new regulation will bring transparency to an issue that has long been costing federal contractors time and money. Federal agencies will have to focus on creating coherent policies and procedures for processing change orders.

ASA addressed the following regulatory issues in 2022: • DOL Proposed Rules: Project

Labor Agreements, Independent

Contractor, Davis Bacon, Overtime, and Joint Employer • ASA called upon DOT Secretary to delay Buy America, Build America

Act (BABAA) in IIJA • Vaccine Mandates (OSHA and

Federal) and OSHA Vaccine on

Healthcare Construction • OSHA • Healthcare Construction • Blood Lead Levels • Process Safety Management for

Hazardous Chemicals • Severe Violator Enforcement • Personal Protective Equipment • Heat and Injury Illness Prevention • Pending EPA HBCD Rulemaking • SBA Surety Bond Guarantee

Program – Retention Bonds

ASA Government Relations Director, Mike Oscar,continued his visits with chapters across the country. Mike visited the following chapters to provide our members with a federal legislative, regulatory, and political update. Each of these chapter visits provided a tremendous opportunity to brief members about ASA’s efforts to advance subcontracting issues nationwide, while also highlighting individual chapters: • Carolinas • Central PA • New Mexico • Utah • Colorado • Michigan • ASA North Texas • ASA of California • Houston • Kansas • Mississippi

As of December 13, 2022, our social media presence increased with 2,132 people liking the ASA Facebook page, an increase from 1,312 likes from September 2019 and 2,289 people followed the page up from 1,773 followers in September 2019. On Twitter, 3,117 followers, an increase from 2,307 in September of 2019.

Additionally, this year we hosted the following podcasts and webinars: • NASBP’s Annual Meeting Podcast with Courtney Little, the AGC and

ABC Chairmen • Price escalation webinar with Lee

Brumitt • Negotiating Form Subcontracts webinar with Mark Felezzola and

Jim Yand • Project Documentation webinar with Brian Carroll • SBA Ombudsman’s Office Webinar • Killer Contract Clauses with

Bethany Beck • Podcast with Jordan Howard, AGC’s

Director of Federal & Heavy

Construction • Podcast with Dalton Defendis, the

Surety &;Fidelity Association of

America’s GRC Director

Finally, the ASA Government Relations Team looks forward to 2023, where we will build on the momentum of last year’s advocacy achievements and use our voice to continue to advance our legislative priorities. We want to thank you for your commitment to our initiatives and your passion and purpose propelled many of our 2022 legislative accomplishments. Our best wishes to you for health and happiness in the new year!

FEATURE

Four Strategies to Keep Up with 2023

by Dale Carnegie Staff

Key Insights

• In an ever-shifting world, consumers’ priorities are changing now more than ever before • When it comes to brand loyalty, convenience, and even social accountability, brands must embrace change to appeal to customers.

Companies can no longer wall themselves off from the non-business world around them. Indeed, corporate social responsibility is on the minds of consumers as they seek out organizations who are committed to diversity efforts, social and environmental consciousness, and compassion for their employees. As consumer priorities shift, businesses must rethink the way they market and sell their products and services.

Here are 4 ways consumers’ priorities are changing and what companies can do about it:

Shift #1: Customers buy in new ways and convenience will remain key.

Brand loyalty used to be easy. Consumers would maintain allegiance to a product, sales rep, or company and would often show their loyalty through repeat purchases and positive word of mouth. Now, for many, convenience supersedes brand loyalty.

Up to 49% of buyers admit to abandoning brick and mortar businesses with no online presence for the ease of buying online. For example, customers who used to eat out are now favoring businesses that offer delivery or use delivery apps.

Action: Companies need to remain agile in how they respond to customers’ changing needs. Inspiring or maintaining loyalty means understanding how customers want to buy and making it easy for them to do so.

Of course, this can be done in an online way or by incorporating technology like AI tools into the buying process. For example, AI can be utilized by offering touchless checkouts or adding a customer service chat-bot function to a website. Also, consider ways to put a more

Martin Damboldt

personalized spin on an in-person service or experience to lure buyers back to physical locations.

Shift #2: Justice for minority groups is important to consumers.

For years, in the US at least, the modern work ethic and belief that if people just work hard enough then they will find success clearly did not hold true for many groups in society.

Out of this, equality—the belief that all persons should be treated equally and be given equal opportunity— became one of the most important consumer and employee movements in the past year. People recognize that more needs to be done to address underlying causes of inequality and injustice.

Action: Companies need to take steps toward diversity, equity, and inclusion (DEI) within their ranks and company culture. Consult experts and invest in continued training

and education around DEI for

managers and staff. Be deliberate in sharing initiatives with followers and customers, but don’t let promises of action go unfulfilled.

Shift #3: The era of less human contact is here– lean into new ways to serve customers through virtualized service.

Restaurants, bars, concerts, sporting events–the places we once gathered routinely – were opportunities to socialize while boosting the economy. Seventy-seven percent of respondents to the 2020 Gartner Consumer Behaviors and Attitudes Survey said they didn’t feel comfortable socializing in the same ways as they did before the pandemic. This means fewer chances to meet consumers in-person –a trend likely to continue even after the pandemic.

Action: Businesses need to meet consumers’ new needs by creating experiences that are comfortable, often meaning distanced from others with various safety measures in place, such as having masks available or enhanced cleaning procedures.

Personalized experiences rather than mass events may be the new normal for many industries. For example, in-person sales seminars can become virtual events or individualized appointments. Look for ways to serve customers and generate sales that limit in-person interaction while meeting their unique needs.

Shift #4: Being environmentally responsible is good for the planet and for business.

Unabated industry growth used to be the norm, and consumers’ demands required the expansion and growth of manufacturing to meet their needs. But for many consumers, the environment is now top of mind as the world faces potentially disastrous results from climate change.

As an example, 75% of smartphone users say the mobile brand they buy from should act toward sustainability in their product designs, even down to their packaging. Up to 80% of consumers in all industries have become increasingly concerned with environmental impact with 38% reporting they have changed buying behaviors as a result.

Action: Organizations need to evaluate their impact on the environment and take steps to manage their carbon footprint and plastic use, among other concerns.

For brick-and-mortar businesses, this could be as simple as switching to energy-efficient lighting or working with suppliers who are environmentally responsible. For service-based industries, it could mean replacing company vehicles with greener options or spending on carbon offset programs.

As consumer preferences change, so too must businesses to keep up with demand. Whether it’s putting your products online or offsetting the negative effects of manufacturing to be carbon neutral, there are several strategies companies should consider to attract socially, environmentally and convenience oriented consumers. For more strategies in an ever-changing world, check out our free training courses for ASA.

Note: If you would like further information or help registering your team, reach out to Robert.Graves@ DaleCarnegie.com for details.

© 2022 Dale Carnegie and Associates. All rights reserved. Portions by Dale Carnegie staff.

About the Editor

Robert Graves, MBA, is a Dale Carnegie Certified Trainer for Dale Carnegie Tampa Bay. His focus is Relationship Selling. He is the author of “Making More Money with Technology.” He often speaks on the evolution of Marketing, Sales, and Service. Robert can be reached at robert.graves@ dalecarnegie.com or call/text 813-966-3058.

About Dale Carnegie:

Dale Carnegie is a global training and development organization specializing in leadership, communication, human relations, and sales training solutions. More than 9 million people around the world have graduated from Dale Carnegie training since it was founded in 1912. Dale Carnegie Training can help your organization build effective interpersonal skills that generate the positive emotions essential to a productive work environment that lead to increased profits.

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