The Contractor's Compass - May 2023

EDITORIAL PURPOSE

The Contractor’s Compass is the monthly educational journal of the Foundation of the American Subcontractors Association, Inc. (FASA) and part of FASA’s Contractors’ Knowledge Network. FASA was established in 1987 as a 501(c)(3) tax-exempt entity to support research, education and public awareness.

Through its Contractors’ Knowledge Network, FASA is committed to forging and exploring the critical issues shaping subcontractors and specialty trade contractors in the construction industry. The journal is designed to equip construction subcontractors with the ideas, tools and tactics they need to thrive.

The views expressed by contributors to The Contractor’s Compass do not necessarily represent the opinions of FASA or the American Subcontractors Association, Inc. (ASA).

MISSION

To educate and equip subcontractors and suppliers with the education and resources they need to thrive in the construction industry. Additionally, FASA raises awareness about issues critical to and about construction in the United States.

SUBSCRIPTIONS

The Contractor’s Compass is a free monthly publication for ASA members and nonmembers. For questions about subscribing, please contact communications@asa-hq. com.

ADVERTISING

Interested in advertising? Contact Richard Bright at (703) 684-3450 or rbright@ASA-hq.com or advertising@ASA-hq.com

EDITORIAL SUBMISSIONS

Contributing authors are encouraged to submit a brief abstract of their article idea before providing a full-length feature article. Feature articles should be no longer than 1,500 words and comply with The Associated Press style guidelines. Article submissions become the property of ASA and FASA. The editor reserves the right to edit all accepted editorial submissions for length, style, clarity, spelling and punctuation. Send abstracts and submissions for The Contractor’s Compass to communications@ASA-hq. com.

ABOUT ASA

ASA is a nonprofit trade association of union and non-union subcontractors and suppliers. Through a nationwide network of local and state ASA associations, members receive information and education on relevant business issues and work together to protect their rights as an integral part of the construction team. For more information about becoming an ASA member, contact ASA at 1004 Duke St., Alexandria, VA 22314-3588, (703) 684-3450, membership@ASA-hq.com, or visit the ASA Web site, www. asaonline.com.

LAYOUT

Angela M Roe angelamroe@gmail.com

© 2023 Foundation of the American Subcontractors Association, Inc.

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issues that would otherwise keep us from taking on bigger jobs.

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PRESIDENT'S LETTER

Dear Readers -

People are starting to savor the outdoors and enjoy the fantastic weather we’ve had lately - at least in Colorado. It’s a good time to focus on safety (there’s never a bad time) - not just in construction, but for our families as well. When people are playing outside - make sure they’re wearing the right shoes, and kids are wearing bright clothes. Be aware of your surroundings, weather forecast, time constraints, and just make sure you plan. Bring out your inner boy or girl scout, mom or dad.

I wanted to make sure you knew that the ASA family is growing. In addition to the new chapter in Austin, Texas, which we welcomed earlier this year, we’re bustin’ out big time in Washington. Rob Scott of Scott Coatings is president of the group, but of course there’s a bunch of people doing the hard work of making this chapter a success. If you’re reading this, and NOT a part of ASA National or one of our chapters, call up the state contact and see what’s happening in your neck of the woods.

Speaking of which, it’s renewal season, so be on the lookout for invoices. If you value your association with ASA, let others know how great this group is. If not, tell us, and we’ll do our best to figure out how to work for your success. Members come up to Richard, Matt, and I, and continue to say how much this association means to them - both personally and professionally. It’s a good feeling, but we know that it’s all of you that are making that happen. Thanks - and continue reaching out to the industry.

It’s when like voices come together for a greater good that we’re heard. Our annual DC Fly-Ins are back, and we’ll be on the Hill talking to our Representatives on June 14. If you want to be a part of the change you want to see, here’s your chance. Registrations are now closed, but there’s lots going on the three days we’ll be in DC. On Thursday, we’ll have a board meeting and our annual business meeting. This meeting will be in-person, AND virtual. If you can’t attend in person, please use this link to register and attend virtually. Be a part of this association.

You’ve should be receiving our FASA (Foundation of ASA) emails about how we can address two very serious issues in the construction industry - diversity & inclusion and suicide prevention. We all think we’re doing the best we can with the resources we have. But are we? Take the time to step back, evaluate when there were things you could have done better on these two issues. Why not take the pledge to invest in suicide prevention, invest in doing things better, for a more successful future for both you and your company?

Plus…we’re excited to announce we’re launching the ASAdvantage Health Plan. See all the details on the website.

Rusty Plowman

ASA President 2022-2023

ASA Goes to DC

ASA’s Fly Ins are back. Make sure your voice is heard, and find out about the State of the Association!

Join us on June 13-15, 2023 for our annual meeting, plus other activities, all in Washington DC. Be a part of democracy in action as we meet our representatives to advocate for Subcontractors’ issues. The deadline for attending the Hill visits has passed, but there’s plenty of other activities. Click here to register!

TUESDAY, 6/13/23

12:00pm - 1:00pm

Tour of U.S. Capitol

2:00pm - 3:30pm

Leadership Roundtables

4:30pm - 5:30pm

Hill Visit Prep Session

6:00pm - 8:00pm

Congressional Reception and Dinner

WEDNESDAY, 6/14/23

9:00am - 4:00pm

Capitol Hill Visits

THURSDAY, 6/15/23

8:00am - 5:00pm

Board Meeting

12:00pm - 1:00pm

Virtual Annual Business Meeting. Link for registration

New EBook from

Struct Share.

StrucShare has just released their new eBook titled “Solving Today’s Procurement Challenges for Specialty Contractors.” Whether you’re just starting out in procurement or you want to brush up on your knowledge, it’s worth checking out. They cover all the essentials: purchasing, inventory management, financials, and reporting. Plus, they provide helpful statistics shared by peers so you can benchmark yourself.

Billd’s 2023 Subcontractor Market Report is finally live!

The big takeaway: Subs have had to shoulder an extra $97 Billion in costs in 2023. Here’s the link to the landing page (no email required to download the report)

OSHA Update

We are seeing an increase in activity coming out of OSHA well into the summer, and below is a brief update of activities that we, along with the Construction Industry Safety Coalition (CISC), are actively monitoring:

• OSHA Announces NEP on Fall Prevention: As of May 1, OSHA has begun a National Emphasis Program focusing on reducing fallrelated injuries and fatalities for

people working at heights across all industries. More specifically, the program establishes guidance for locating and inspecting fall hazards and allows OSHA compliance safety and health officers to open inspections whenever they observe someone working at heights. As stated in the NEP, OSHA “anticipates that most of the inspections will occur in construction because the majority of the fatal falls to lower levels each year occur on construction worksites.”

• Workplace Injury and Illness Recordkeeping Final Rule under OMB Review: The Office of Information and Regulatory Affairs received from OSHA the final rule on its electronic tracking of workplace injuries and illnesses. If issued, the rulemaking would likely require establishments with 100 or more employees in certain designated industries to electronically submit information from their OSHA Forms 300, 301, and 300A to OSHA once a year, among other things.

• President Biden Signs Regulatory Review Executive Order: On April 6, President Biden issued an Executive Order (EO) on “Modernizing Regulatory Review,” which aims to facilitate the initiation of meeting requests from potential

participants who have not historically requested such meetings, as well as to improve the efficiency and effectiveness of E.O. 12866 meetings. Of concern to CISC is the potential for associations, coalitions, and even individual associations represented by coalitions to be more easily denied E.O. 12866 meetings with the Office of Management and Budget, because of the frequency in which they request meetings. Additionally, OMB is accepting comments in response to implementation of Section 2 (e) of the EO, which includes language on establishing a new process for these meetings, through June 6th.

• Heat Injury and Illness Standard

Update: As we continue to track movement on this issue, representatives from OSHA have publicly stated the agency intends to initiate the SBREFA panel process in early May. The Steering Committee is working to select a representative(s) to represent the coalition, but we would also advise you to begin identifying your small business/small entity members and clients who would be interested in participating in the panel.

• OSHA PPE Proposed Rule Clears

OMB Review: On April 4th, the Office of Management and Budget approved OSHA’s draft proposed rulemaking clarifying the requirements for the fit of PPE in construction. As of now, the proposed rule has not been published on the Federal Register or OSHA websites, but we expect text to come out soon.

Mental Health at Work Initiative

May is Mental Health Awareness

Month, and this week the Department of Labor is launching its Mental Health at Work initiative, including a new webpage promoting numerous tools and resources. This initiative will advance wellness in the workforce by reducing stigma and increasing awareness of mental health and wellbeing within

workplaces; promoting best practices and compliance by employers; and promoting mental health equity and access, especially for marginalized and vulnerable populations.

Nearly 1 in 3 adults had either a mental health or substance use disorder in the past year. Job quality is an important factor in a person’s mental health and ability to access treatment for mental health conditions and substance use disorders. While workplace stress and poor job quality can negatively affect workers’ mental health, workplaces can also provide important connections to resources, supports, accommodations, and benefits designed to improve our mental health and facilitate equitable access to treatment. From construction sites to daycare centers, and from healthcare clinics to assembly lines, all workers need workplaces that prioritize mental health and wellness.

Compendium on State Construction Laws Now Updated and Available

The AGC/ABA Construction State Law Matrix is the most comprehensive and concise resource available for Contractors, Owners, Engineers, Designers and Architects looking for information on state laws that affect public and private construction projects. Joe Cohen, a construction and federal government contracts partner at Fox Rothschild LLP, is the current research editor that updates the State Law Matrix annually with volunteers from The American Bar Association Forum on Construction Law. This searchable database of all 50 states, DC and Puerto Rico provides expert analysis and explanations on over 60+ issues ranging from Lien Notices to Pay If-Paid/ Pay-When-Paid.

See a sample state here.

To purchase your annual subscription to the Construction State Law Matrix, CLICK HERE. IMPORTANT: ASA Members get a 25 percent discount! Log into InfoHub on the ASA website, or look for it in a recent ASAToday or Hammer & Nails issue.

This tool allows users to search by state or topic area. Topic areas include:

• L icensing Requirements

• Prevailing Wages

• Pay-If-Paid/Pay-When-Paid

• Bidding Requirements

• Prequalification

• L ien Notices and Filings

• MBE, DBE, WBE

• Statute of Repose

New Updates to DOL and FLMA Posters

Following the passing of the Pregnant Workers Fairness Act and the Providing Urgent Maternal Protections for Nursing Mothers Act (also known as the PUMP Act) in late 2022, the U.S. Department of Labor in late April added information about the law’s mandates to its minimum wage poster.

To reflect the amendment of the PUMP Act to the FLSA, the required FLSA poster has been updated to include Pump At Work information for employee awareness.

When the Affordable Care Act first mandated pumping breaks, they were limited to workers entitled to the FLSA’s overtime protections — “nonexempt” workers who often are paid on an hourly basis.

The PUMP Act expanded those rights to exempt employees, who are not entitled to minimum wage and overtime protections and are often paid on a salary basis.

Employers must communicate those rights to workers, and — assuming the information is posted or provided properly — DOL’s poster fulfills that notice requirement.

In addition, the department’s Family and Medical Leave Act poster also received minor updates, which clarifies that while FMLA leave is unpaid, an employee may choose or be required to use employer-provided paid leave at the same time, according to a blog post from law firm Atkinson, Andelson, Loya, Ruud & Romo.

Expanding into Evergreen Territory

With a celebration and networking gathering at Trenchers in Seattle, ASA’s newest chapter got off to an energetic start. The American Subcontractors Association promotes and protects the rights and interests of subcontractors and suppliers by building strength in the community through education, legislation, networking and professional growth. And now we’re doing it in Washington! Thanks to Rob Scott of Scott Coatings for stepping up as President of this chapter. But he’s got lots of support from around the state: ASA members from Division 9 Flooring, Holmberg Mechanical, Patriot Fire Protection, ST Fabrication, Corona Steel, and DTG Recycle are all making sure this chapter gets the foundation it needs to grow!

ASA’s new Washington chapter

was instrumental in sending a support letter to the House and Senate Labor Committees in Washington regarding legislation (HB 1524/SB 5528) that would extend the 5% retainage cap for all public construction projects to private construction projects, along with extending the use of retainage bonds in lieu of retainage for all public construction projects to all private construction projects.

Retainage is often 10-15% for a construction project and this high retainage limits a subcontractor’s ability to take on new projects, pay high wages to current employees, hire new employees, buy equipment and maintain cash flow. High retainage means subcontractors must often borrow money for operating costs and it gives general contractors significant negotiating leverage

over subcontractors. Fair retainage and the ability to bond helps smaller subcontractors and women-and-minority- owned subcontractors better compete for projectsand grow their businesses.

Senate Bill 5528 passed a concurrence vote in the state Senate in April, 48-0 with one Senator being excused. The bill will take effect 90 days from the end of the session, which was April 23rd. So, July 23rd will be the effective date. The legislation will extend the 5% retainage cap for all public construction projects to private construction projects, along with extending the use of retainage bonds in lieu of retainage for all public construction projects to all private construction projects.

Bonding provides subcontractors with improved cash flow, the ability to compete for additional contracts and more high-wage jobs. In other states, fair retainage caps and bonding have lowered construction costs (about 1-1.5% cost reduction based on a decrease in retainage from a 10% to a 5% cap). 14 other states have instituted similar 5% (or less) caps on retainage for private contracts. Last year, Colorado accomplished this legislative endeavor and our ASA Chapter in that state championed it.

The U.S. Small Business Administration (SBA) 2023

8(a) Graduate of the Year is Jesse Cherian, president and CEO of Jabez Holdings Inc (dba ST Fabrication) in Orting, Washington. ST Fabrication is a structural and miscellaneous steel fabricator providing steel for projects across the Pacific Northwest Region.

Congrats to WA Board of Advisors

Member Jesse Cherian!

CONSTRUCTION DATA & F IGU R E S

College Graduates are Fleeing Coastal Cities

For most of this century, large urban areas — nearly all of them on the East or West Coasts — saw net gains of college graduates, even as they lost large numbers of workers without such degrees. But in a trend that began before the pandemic and has since picked up steam, expensive cities are now shedding educated workers too.

Data analyzed by The New York Times shows that many people leaving cities with high costs of living, like New York and San Francisco, are landing in major metros that are not quite so expensive, including Phoenix, Atlanta, Houston and Tampa, Fla. The pandemic-era rise of remote work has accelerated the shift.

You can look up your metro area to see whether you’re gaining or losing collegeeducated workers.

Net Domestic Migration of Working-Age College Graduates in the 12 most expensive large metro areas (including cities like New York, LA, and Chicago)

Construction Inflation and Prices

Source: Dodge Data & Analytics - https://www.construction.com/news/April23PPI

ABC Construction Backlog Indicator increased to

Industry Confidence Index Increases 1 Point

The ENR Construction Industry Confidence Index for the first quarter shows that, of the 305 executives of large construction and design firms responding to the survey, a majority believe the market is growing. The CICI index moved up a point, to a record 78 on a scale of 100, in the first-quarter survey, an indicator of a growth market.

AGC - ConstructorCast: “Contractors Care: An Industry of Support”

Construction has one of the highest suicide rates of any industry. On this episode, we speak with the co-chairs of AGC’s Mental Health & Suicide Prevention Task Force -Mandi Kime of AGC of Washington and Brandon Anderson of AGC of Missouri -- on how they are leading the fight for an industry in crisis. They share why they are so passionate and how they are working to combat construction’s leading mental health difficulties and the stigma that accompanies them. Listen now.

Source: ABC.org

8.9 months in April from 8.7 in March

Toxic Job Sites Aren’t Fair…to Anyone

by Lucas Johnson, Vali Homes

“This works sucks. Let the ____ guys do it”. I’ve heard this phrase far too many times after a few decades in the construction industry. It also accurately reflects a general industry attitude: The people with the least power will be assigned the most dangerous tasks.

After years of building in Arizona, we got so tired of seeing this we decided to do something about it. We’ve created Vali’s “5 Factors of Good Building”, which is a design and product specification tool. The 5 Factors include: (1) Comfort & Health, (2) Durability & Resiliency, (3) Efficiency & Renewables, (4) Lifecycle Carbon Impact, and (5) Social Justice.

While it’s important to consider all Five Factors in every decision, this article will focus on the factor that is listed last, though it is certainly not least: social justice. This can be a confusing

and politically fraught subject, but at the most basic level it seems beyond debate that people should have a right to fair compensation and a healthy environment. Yet the lived experience of workers is often unfair and unhealthy. Injustice plays out when people with less power are assigned the dirty work. Of course, construction will always require digging in the dirt, but ironically enough, dirty work isn’t typically referring to literal dirt. Dirty work typically means interfacing with toxic materials.

Product Lifecycles of Embodied Injustice

There are three primary stages where workers are forced to interface with toxic materials. These include material extraction sites, manufacturing facilities,

and construction sites. In each of these stages, the workers are rarely compensated fairly for the risks they are taking. As construction professionals the key action we can take is specifying healthy materials with socially just lifecycles.

In terms of the materials we use to build, we must expand our thinking beyond what occurs at construction sites. The lifecycle impact of a material begins much sooner before you buy it at the store. Pro tip: when there is a low price on the shelf it typically means there were low standards of care for the people who created it.

Unfortunately, with pressure to build as cheaply as possible, a lot of products are made with what could be called lifecycles of embodied injustice. While the goal of creating affordable housing

is good, it isn’t okay to create toxic environments for future occupants and the workers who build their living spaces. How can we expect people to escape cycles of poverty when they are living in uncomfortable and toxic environments?

When the Foam Hits the Wall

Let’s explore spray foam insulation as an example of lifecycles of embodied injustice. We will look at one of the simplest applications, which would be installing it around a window to seal between the frame and the rough opening. Let’s start by considering the ingredients used to make spray foam.

Spray foam is effectively a mix of fossil fuels and concerning chemicals on the Red List, which is a comprehensive list of chemicals known to have negative human health impacts. It is therefore inextricably tied to the large chemical and fossil fuel companies who have caused some massive problems, including climate change. These include war-for-oil and incredibly poor working conditions at extraction sites. These also include factory workers being exposed to toxic materials in their work while the same factories dump these chemicals into the local environment. For a powerful example, please check out the documentary called “The Devil We Know.”

Then we get to the job site where workers, often without sufficient protection, are installing spray foam. Insufficient protection typically occurs due to workers not having the resources to afford the proper equipment and/or due to not being made aware of what they need to be safe. This is a perfect example of what anthropologists and other social scientists call structural violence.

To do a reasonable job installing spray foam, it requires being close to the application. Workers are exposed to concerning chemicals. Maybe these chemicals all off-gas during construction, but maybe the chemicals continue offgassing long enough to harm the future occupants as well. Either way there has been a deep history of toxicity from raw material onwards.

So how do we solve this problem and create social justice in construction? It starts by caring about the people who do the actual work. This is the moment to give a big shout-out to all the subcontractors and trades. Thank you from the bottom of our hearts for the work that you do. We understand it isn’t easy and it is our job as a developer to have your back.

The Vali Way

The Vali approach to social justice in construction begins with specifying nontoxic materials. It continues by taking a deep look into the product lifecycle of materials before we specify them. Circling back to the window integration example: instead of spray foam, we stuff the shim space gap with sheep wool insulation and use non-toxic (aka certified Red List Free) tapes to seal from the frame to the rough opening. We also occasionally use non-toxic caulking when zero reveal details require it. Of course, the rough opening has also been prepared with non-toxic airtightness and waterproofing materials, which can include membranes, tapes, and/or liquid applied.

The product lifecycle of wool insulation can be one to celebrate. It is worth emphasizing that all wool insulation is not created equal. Some wool can come from poorly treated sheep handled by poorly compensated workers and then enter a toxic manufacturing process. That being said, we are lucky to have Havelock Wool located in Reno, NV who provide a truly good and socially just product.

The Havelock Wool product lifecycle begins in New Zealand with extremely high standards of care for the sheep and the people who raise them. The insulation product comes from a former waste product, which is the early season shearing of the belly wool. This is removed so it doesn’t drag on the ground, which can cause illness and comfort issues. The additional revenue stream of selling a former waste product helps the shepherds immensely. This is clearly much better than the raw material extraction process behind chemicals and fossil fuels.

The raw wool is shipped in densely packed containers to Reno, NV. Each container of raw wool can create roughly 50 containers of finished product. Their factory in Reno is a happy and healthy environment where people are well compensated for their work. Fire code requires adding the minimal amount of boric acid, but otherwise there are no toxic chemicals, such as glues or binders, added. This is also clearly a much better manufacturing process than you find with conventional materials.

The non-toxic approach is not only fairer to workers, but it also provides much better performance with much less maintenance for the occupants of the building.

The next time you are specifying a product, please consider the entire lifecycle of the product and how it has affected people throughout the process. We must demand products that are good for the people who make them, install them, and live with them.

Beyond specifying truly good nontoxic materials, it is critical to engage the contractor community with respect for their trade. At our most recent project in Phoenix called Vali Mews, we put the effort into finding craftsmen who run small local businesses. We worked with them from the design stage through construction to properly price their services so they would be fairly compensated. We also made sure they would have a safe and enjoyable working environment installing healthy products. It cost a little more upfront, but it prevented many mistakes, avoided reiterative work, and created a truly spectacular result. Creating good buildings requires creating good working environments for the people who do the work.

About the Author

Lucas Johnson is Chief Building Nerd at Vali Homes and a board member at the EcoBuilding Guild who has contributed to over 10,000 high performance building projects ranging from deep energy retrofits of large commercial buildings to Net Zero Passive Houses.

How to Overcome Industry Challenges with Technology

The construction industry’s been one of the hardest pressed in recent years. From a lack of skilled labor to supply chain hiccups, construction leaders face some daunting challenges.

As we look forward into 2023, we invited Allen Overturf, the CFO of Welsh Construction, and Jim Campbell, AvidXchange’s business line executive, construction, to discuss the state of the industry.

Overturf has steered financial operations within construction companies for more than 25 years. And Campbell is AvidXchange’s “eyes and ears” in the construction industry.

These industry luminaries discussed three major pain points for construction executives this year, including:

• Talent shortages for skilled laborers and accounting professionals

• Project schedule complications stemming from ongoing supply chain issues

• Payment process hurdles

Construction Labor Shortages

In February 2023, Associated Builders and Contractors (ABC) announced that, according to its proprietary forecasting model, the construction industry must recruit an estimated 546,000 workers more than its normal pace of hiring to meet demand.

Additionally, ABC found that the industry averaged 390,000+ job openings per month in 2022, the highest level ever on record. Overturf called these statistics, “more than concerning.”

“Being a general contractor, we subcontract out between 80 and 90% of our work and all of those subcontractors that we work with … are always scrambling to meet schedule because of their own labor shortages and retirement is outpacing the skill level coming in. So it’s definitely a concern,” Overturf said. “I don’t think the market has adjusted. Fully staffing every day, every week across all subcontractor skill levels is nearly impossible.”

Construction labor shortages extend beyond the skilled trades to internal operations. The National Center for the Middle Market’s latest Middle Market Indicator report revealed that 52% of surveyed construction executives said talent management would be a top internal challenge over the next 12 months.

That challenge is even more pronounced in finance and accounting departments. In a survey of mid-market execs conducted by RSM, 23% said it’s been “extremely challenging” to hire finance and accounting talent in the last 12 months.

Both Overturf and Campbell have seen firsthand how this labor shortage is impacting mid-market construction firms, causing them to seek solutions that automate mundane tasks and support a culture that meets the needs of today’s employees.

“When we talk about construction labor shortages at large, our mind first goes to the skilled trade, but it is true that it is bleeding into the back office.

Interview with Allen Overturf, Welsh Construction and Jim Campbell, AvidXchange

Construction is not intuitive. Construction accounting, they don’t teach that a whole lot in school,” Campbell said. “There is quite a learning curve. You’ve got to be passionate about it. You’ve got to be smart, willing to learn. And it’s a lot of hard work. We are seeing an attraction with the new labor force coming in with high expectations of automation.”

Construction Project Timing

Campbell likened supply chain issues in the construction space to a game of Whac-A-Mole, saying, “You just don’t know what’s going to pop up.” Overturf added, “That Whac-A-Mole game is really fun. But in the real world, that is a lot of stress.”

Material shortages leading to project delays are pervasive in the industry. A National Association of Homebuilders survey revealed that in October 2022, more than 80% of single-family builders experienced a shortage of appliances, transformers, windows and doors.

Surprisingly, delays aren’t the only scheduling challenge Overturf and Campbell see across the industry this year. Many construction firms are faced with the catch-22 of early materials delivery.

When deliveries are premature, firms must figure out a way to accept and store the materials or risk not having them when needed. This leads to logistical complications and additional storage expenses for construction businesses.

“When you get the materials early, it’s a problem. If it’s late, it’s even a bigger problem,” Overturf said. “As a general contractor and working with all of our subcontractors, we’re faced with how do we store it and accept it? Because we want to grab it now, otherwise we’re not going to have it available when we need it.”

Overturf and Campbell agreed these issues are putting a strain on firms and their relationships with subs, suppliers and customers.

“We found ourselves quickly in a different world. And I would say to solve

this or reduce some of that friction, owners are going to have to be more aware of the realities of what’s going on,” Campbell added. “If you’re going to get an end product that you’re satisfied with in today’s world, you’ve really got to be more flexible.”

Construction Payment Process Hurdles

The current industry labor and materials shortages impede payment timing. In construction, this process is already complex due to high upfront costs and the frequent use of subcontractors.

“General contractors today, the relationships between them and their subs have never been more important,” Campbell said. “And one of the things that does make a good relationship is timely and accurate payments. I’ll hear it from the subcontractors or the trades’ point of view. They’ll say, ‘They’re a good GC to work for, they pay well.’”

Overturf shared that his company adopted automation to better manage payments with subcontractors. He’s found this creates a win-win environment, ensuring subs maintain healthy cash flow and remain dedicated to the jobs they’re working for Welsh.

“We automatically send reminders to every subcontractor that has an unbilled amount. We send them a reminder and say, make sure you get your billing and send it to this email address and make sure you don’t miss that deadline,” Overturf said. “You can’t work as a team if you’re setting somebody up for failure and just say, ‘Well, you missed the deadline, so you’re going to have to wait another 30 days.’ That creates a rub. And as Jim talked about, that rub isn’t going to work out very well for anybody.”

Construction Lien Waiver Process

Lien waivers introduce another layer of complexity to the construction payment process. The highly manual exercise

begets a lot of unproductive time chasing paper.

Campbell explained that AvidXchange’s TimberScan offering will soon support lien waivers, notifying AP pros of outstanding issues and allowing them to address matters with a click –all on a single screen. This solution will streamline work for stretched financial teams.

“The lien waiver process today typically is highly manual and it’s just another choke point that introduces nonproductive time in a paper chase,” Campbell said. “What we’re doing there is associating outstanding lien waivers with future payments and then with the click of a button, you can see what’s outstanding and take action on it from there, all from a single screen. … If we can put this on an electronic platform, we think it can ease a lot of friction and eliminate a lot of the paper chase.”

Learn more about Lien Waiver Management with AvidXchange.

About AvidExchange

AvidXchange is a leading provider of accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. AvidXchange’s Software-asa-Service (“SaaS”) based, end-to-end software and payment platform digitizes and automates the AP workflows for 8,800 businesses (our buyers) and we have made payments to 965,000 supplier customers of our buyers over the past five years.

Additionally, AvidXchange, Inc. is a licensed money transmitter for US B2B payments, licensed as a Money Transmitter by the New York State Department of Financial Services, as well as all other states that require AvidXchange to have a license.

To learn more about how AvidXchange, and its publicly traded parent AvidXchange Holdings, Inc. (Nasdaq: AVDX), are transforming the way companies pay their bills, visit www. Avidxchange.com/construction.

AP Solutions Built for the Construction Industry

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AvidXchange integrates with over 220 accounting systems to automate your accounts payable (AP) process seamlessly and cost effectively.

Benefits include:

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Save time, money and paper with AvidXchange’s AP automation solutions.

Let’s Have an Honest Conversation About Subcontracts

by Karalynn Cromeens, Cromeens

I remember the first subcontract I ever read as a baby attorney. My exact thoughts were this thing is so bad you are better off burning it than trying to fix it. It was so one-sided in the general contractor’s favor that it would be easier to start from scratch than to try to even out the subcontract I was reading. Not too much has changed regarding the form of most subcontracts, but subcontractors are taking more time to understand what they are signing and trying to negotiate better terms.

How did subcontract become so one-sided?

Having grown up in a family construction business and later becoming an attorney, I can see how these contracts became one-sided. As an attorney, you are taught to draft documents from the perspective of what is in your client’s best interest. Normally after an attorney drafts the contract, there is a negotiation to even out the terms of the contract. That negotiation rarely happened; subcontractors wanted to avoid rocking the boat. They just wanted to get the job and go to work. This lack of negotiation is how the standard terms of a subcontract became so one-sided, and that just became the standard.

What is the job of a contract?

The true job of a contract is to describe the relationship between two or more parties so each party is clear on what to expect moving forward. If the contract is not written in a way that can be easily understood, then it fails at explaining what is required of each party and is destined to fail. Whatever needs to be said in a contract to explain the parties’ relationship can be said in plain English; very few things in a contract require legalese to be effective. A new idea in construction: write the contracts, including subcontracts, so that everyone can understand them, not just attorneys. If everyone can read the contract and understand what they are supposed to do, the parties’ relationships would be much more successful.

Law Firm,

PLLC

Even if you take the time to read your subcontract, you may need to fully understand the risk your company will be taking by signing the subcontract. You need an attorney familiar with construction law to walk you through the risky parts of the subcontract. Because most subcontracts have the same risky terms, it will only take two or three times of an attorney review to determine what risk you are willing to take and what terms you want to negotiate. Once you understand the risk you want to eliminate, we can devise creative ideas to negotiate those terms.

How to negotiate the terms of the subcontract.

First, let’s start with the idea that the general contractor expects some subcontract negotiation. A general contractor is more concerned when they hit send on a subcontract and get it back signed in less than ten minutes than when a sub has questions or things they want to be changed. Generally speaking, a negotiation is never just crossing a section out and saying you won’t sign it. It’s having a plan on how to meet in the middle. Also, explaining why your company is unwilling to take a specific risk is usually helpful. Most of the time, the PM or other admin who sent you the subcontract needs to understand the risk they are asking you to take.

Example:

The idea on how to Negotiate a Pay When Paid Clause.

You are awarded a job and receive a subcontract with a pay-when-paid clause. You have already decided that this is a risk your company would like to mitigate.

An optional response:

Dear General Contractor:

We have reviewed the subcontract and have the following concerns and questions:

The subcontract contains a pay-whenpaid clause; we realize that this could lead to our company having to cash flow this entire subcontract amount without getting paid. That is a huge risk you are asking our company to take. Are you willing to split the risk with us? If the owner does not pay you within 30 days of your pay application and the nonpayment is not due to our bad work, you will pay us 50% of our pay application amount.

Please let us know your thoughts. I look forward to working with you.

Thank you, Subcontractor

To have a successful relationship, you must understand what the subcontract says and what is expected of your company. You need to understand the risk in the subcontract and your company’s risk tolerance, then find a creative way to meet in the middle.

Remember, when you negotiate the terms of a subcontract, it’s not just for you. It benefits all other subs and is a step in making the subcontract less one-sided.

About the Author

With more than 18 years of experience in construction and real estate law, Karalynn Cromeens has filed more than a thousand lawsuits to foreclose or remove mechanics liens successfully. Her family also owns a material supply company, providing Karalynn first-hand knowledge of the construction industry. This personal understanding, combined with her extensive legal experience, guides The Cromeens Law Firm’s true purpose— To protect and defend all that you have worked hard for and be your partner in business. She is also a best-selling author and podcast host for Quit Getting Screwed.

The first step to negotiation is understanding what risk your company is taking by signing the contract.

LEGALLY SPEAKING Streamlining Processes for Cost Savings and Chargeback Allocation Strategies

by Dan Doyon, Maxim Consulting Group

Construction projects are complex and multifaceted, with numerous stakeholders and processes involved. As a result, construction projects frequently experience delays, cost overruns, and quality issues. Contractors must streamline their processes and implement cost-cutting measures to address these issues. This article will examine how contractors can optimize processes and implement chargeback allocation strategies to increase profit.

Adopt Project Management Software

For streamlining building operations, project management software is vital. It assists contractors in managing all parts of a project, including scheduling, resource allocation, budgeting, and documentation. Contractors can anticipate potential difficulties and make improvements before they become costly issues. Furthermore, this software enables real-time collaboration and communication among team members, increasing productivity and efficiency. To guarantee a successful deployment, contractors should follow specific best practices while implementing project management software, such as:

• Determine the Company’s Needs –What specific features and capabilities are required? Your current accounting system may already provide the capabilities you require. You can reduce your options by identifying your business needs and choosing a software solution that meets your specific demands.

• Engage All Stakeholders – All stakeholders must participate in the software selection and adoption process. This includes project managers, financial teams, management, contractors, and other applicable parties. Engaging

these participants ensures everyone understands the benefits of the software and its intended use.

• Offer Training and Support - Training and support are vital for successful software user adoption. Companies should provide initial training and continuous user assistance to guarantee that all users can effectively utilize the software.

• Measure the Success of the Implementation - It is crucial to evaluate success to ensure the software delivers the anticipated advantages. Create Key Performance Indicators (KPIs) and regularly assess progress toward these objectives. This helps you to identify areas for improvement and make the necessary adjustments.

Implement Lean Construction Practices

Contractors can decrease costs and improve efficiency by applying lean construction techniques that emphasize minimizing waste and maximizing value. This strategy emphasizes identifying and reducing non-value-added tasks and streamlining workflows. The outcome is a simplified construction process that produces projects of higher quality in less time.

Lean construction requires a constant improvement mindset. This necessitates routinely evaluating operations and exploring new methods to increase efficiency and decrease waste. Including all stakeholders in this process ensures that everyone contributes to improving

the project’s performance. To accomplish this performance gain, it is necessary to identify and prioritize the features and functionalities that will provide the most significant value to the project’s stakeholders and to encourage team members to contribute their knowledge and experiences.

Use Building Information Modeling (BIM)

Building Information Modeling (BIM) is a 3D modeling technique that allows contractors to produce a virtual model of a building before its construction. This technique can aid in identifying potential problems before the start of construction, hence decreasing the need for costly modifications in the future.

Moreover, BIM enables contractors to optimize their building designs, reducing material waste and enhancing energy efficiency. BIM standards and protocols must be established to ensure that BIM is appropriately utilized. These standards should include file naming rules, the structure of project folders, and model development. By setting standards and processes in advance, you can help ensure that all project participants perform consistently and efficiently.

BIM relies on collaboration and the sharing of information. A Common Data Environment (CDE) is a best practice

for organizing this collaboration and information exchange. A CDE is a single source of truth for all project information, including models, drawings, and specifications. Utilizing a CDE ensures that everyone uses the same information, reducing the likelihood of errors and omissions. BIM should also be connected with other systems utilized on the project, such as project management software and scheduling tools when a CDE is employed. This integration ensures all users can access the same data and operate more efficiently.

Employ Prefabrication

Prefabrication is building components in a factory-like environment and transporting them to the construction site for assembly. By utilizing prefabrication, contractors can reduce waste and save construction time on-site. In addition, the quality of prefabricated components is frequently more uniform, resulting in higher-quality projects.

To fully realize the benefits of prefabrication, it is necessary to incorporate it during the earliest design stages. This allows the design and prefabrication teams to collaborate to optimize the design for prefabrication. This can result in increased productivity, decreased expenses, and enhanced quality. Define the scope and specifications of the prefabricated components to guarantee that the process is carried out efficiently. This includes determining the sorts of prefabricated components, the level of required detailing, and the quality criteria to be met. Establishing these criteria beforehand ensures the prefabrication process aligns with the project’s objectives.

To ensure that prefabricated components satisfy the specifications of a given project, quality monitoring is necessary. This includes applying quality control methods at each phase of prefabrication. These steps should be documented and provided to all stakeholders to ensure everyone understands the quality criteria. Finally, logistics play a crucial role in the prefabrication process. It is essential to streamline transportation to guarantee that components are delivered to the construction site efficiently and quickly.

This includes communicating with the transport teams and planning deliveries according to the project schedule.

Implement Chargeback Allocation Strategies

Strategies for chargeback allocation involve assigning project costs to particular stakeholders or departments. Contractors can distribute costs effectively by employing chargeback allocation procedures and holding each department accountable for their spending. This methodology can also assist in identifying areas where expenditures can be lowered, resulting in overall cost savings.

These are some best practices for applying chargeback techniques in the construction industry:

• Identify Chargeback Policies and Procedures – It is vital to define them clearly before implementing them. This includes determining which costs will be assigned to which departments, how costs will be assigned, and the frequency of chargebacks. This information should be explicitly defined so everyone knows what to expect with their financial obligations.

• Establish Chargeback Categories

–Contractors should identify chargeback categories that align with their corporate objectives and goals. Warehouse, general management, equipment rental, and overhead expenses such as IT, accounting, and human resources are examples of chargeback categories. By recognizing these categories, contractors can distribute expenses accurately and discover places where costs can be lowered.

• Automate the Process with Technology – Automating the chargeback process with technology can help eliminate errors and save time. For instance, project management software can automatically track spending and assign money according to predefined rules. This method lowers the need for manual intervention and assures proper cost allocation.

• Monitor and Analyze Chargeback Data – Contractors should regularly monitor and analyze chargeback

data. This involves identifying trends, analyzing spending patterns, and discovering cost-reduction opportunities. Contractors can make informed spending decisions and identify improvement opportunities by routinely monitoring and analyzing chargeback data.

• Communicate with stakeholders

-While implementing chargeback strategies, effective communication is crucial. Companies in the construction industry must effectively interact with all stakeholders, including project managers, finance teams, and department heads. This includes delivering regular cost updates and ensuring all parties know their responsibilities and financial commitments.

Because construction projects are inherently complicated, careful planning and communication are critical when applying chargeback techniques. By adhering to these best practices, contractors can effectively allocate expenses, uncover cost-cutting options, and enhance the quality of their projects.

Adopting project management software, implementing lean construction principles, utilizing Building Information Modeling (BIM), employing prefabrication, and implementing chargeback allocation strategies enable contractors to streamline processes for cost savings and improve the overall quality of projects.

About the Author

Dan Doyon is Director at Maxim Consulting Group (www. maximconsulting.com) based in Dallas, Texas. He works with constructionrelated companies to solve complex business challenges to increase revenue and profitability. With his guidance, companies have driven over $160 billion in top-line sales growth and hundreds of millions in operational savings through improved processes. Dan specializes in business transformation and turnarounds, published research papers and trade articles, and is an acknowledged industry speaker. Dan received his MBA from Georgetown University. He can be reached at dan. doyon@maximconsulting.com.

Reducing Waste on Construction Sites: A Win-Win for Businesses and the Environment

by Patrick Hogan, handle.com

Waste reduction and sustainability are becoming more pivotal in the construction sector. The role of construction businesses in tackling these matters is vital.

Construction sites generate a significant amount of waste. From excess materials to packaging and debris, waste can quickly accumulate, leading to increased costs, decreased efficiency, and negative environmental impact.

By reducing waste on construction sites, subcontractors and other construction businesses can achieve multiple tangible and intangible benefits. This article explores some specific examples of construction projects and how they reaped the benefits of reducing construction waste and not contributing further to harming the environment.

The environment as the primary beneficiary

Reducing waste on construction sites can have a significant positive impact on the environment. One of the most effective ways to reduce waste is to reuse materials on-site. For example, when demolishing a building, the concrete and brick rubble can be crushed and used as a base for new construction, reducing the need to purchase new materials.

The Empire State Building renovation is an excellent demonstration of how reusing materials benefits the environment. During the renovation, the building’s aluminum window frames were removed, refurbished, and reinstalled as part of a bigger green retrofit project, reducing waste and saving energy and resources. This has resulted in a drastic reduction in cost and time for the project, eliminating the need to source even more materials for a

colossal retrofit.

Another way to reduce waste on construction sites is to recycle materials. Recycling materials such as metal, cardboard, and plastics can divert waste from landfills and reduce the environmental impact of construction projects. For example, during the construction of the St. Louis Cardinals’ Busch Stadium, over 90% of the waste generated on-site was diverted from landfills through recycling and reuse efforts, significantly reducing the project’s overall environmental impact.

Cost savings can’t be discounted

Reducing waste on construction sites leads to significant cost savings for businesses. One of the most obvious ways to save money is by reducing disposal costs. Waste removal and disposal can be expensive, especially for projects that generate large amounts of waste. Contractors can save money on disposal fees and potentially avoid additional costs associated with exceeding waste limits if waste reduction is in mind at the beginning of the project.

The direct cost savings of reusing and recycling materials on construction sites are also nothing to sneeze about. For example, during the construction of the Palazzo Hotel and Casino in Las Vegas, the project team reused and recycled over 70% of the waste generated on-site, resulting in over $5 million saved in material costs.

Reducing waste leads to shorter project lengths

Reducing waste on construction sites also improves project efficiency. When waste is reduced, contractors can

allocate the time and resources spent on waste removal and disposal towards other aspects of the project, enhancing productivity and ensuring project deadlines are met. Additionally, reducing waste can result in a cleaner and more organized worksite, increasing workers’ morale and productivity.

A cleaner construction job site has numerous benefits that extend beyond just having a less cluttered workspace for all stakeholders. One of the most significant benefits is safety. The risk of accidents such as trips and falls is reduced and it’s easier to organize the jobsite such that each area has function and use. This creates a secure environment for workers, increasing productivity and morale. In addition to safety, a job site that’s clear of excess materials and clutter also improves efficiency by allowing workers to quickly and easily locate tools, equipment, and materials. This reduces downtime and prevents work stoppage due to missing items.

Improved project management is another positive result of less cluttered job sites. By providing a clear overview of the work being done, an organized job site helps identify potential issues before they become problems. This can prevent delays and ensure that projects are completed within budget and on time. When everyone knows where everything is and what tasks are required, it becomes easier to communicate and collaborate effectively.

An example of improved project efficiency through waste reduction can be seen in the construction of the Burj Khalifa in Dubai. The project team implemented a comprehensive waste management plan that included on-site sorting and recycling of excess and waste materials. As a result, the team

reduced the amount of waste sent to landfills by over 80%, leading to a more efficient project timeline and reduced costs associated with waste removal and disposal.

Final thoughts

Reducing construction waste can lead to significant benefits for businesses, the environment, and society. We have seen how waste reduction can result not only in being more environmentally friendly but also in reaping cost savings and improved project efficiency. With the construction industry being a major contributor to waste production, it is crucial that businesses prioritize waste reduction as a part of their sustainability strategy and also their overall business strategy in improving growth and profit margins. By implementing waste reduction strategies, construction businesses can achieve these benefits while also demonstrating their commitment to responsible environmental practices.

About the Author:

Patrick Hogan is the CEO of Handle.com, where they build software that helps contractors and material suppliers with lien management and payment compliance. The biggest names in construction use Handle on a daily basis to save time and money while improving efficiency.

Remixing Cement

The cement industry is a top source of CO2 emissions, but abatement pressures could prompt efforts to reimagine the business.

As the second-most-consumed product globally (after potable water), it is used in almost everything we build - from our homes and cityscapes to dikes and dams. And it contributes about a quarter of all industry CO₂ emissions.

Cement companies are under pressure to reduce their emissions. Whether optimizing the shape and intensity of the kiln flame, incorporating alternative fuels, or incorporating AI, innovation is critical to the mix.

Read more about the technological innovation happening in the cement industry and laying the foundation for a zero-carbon cement.

McKinsey publishes a wide range of articles on related topics, if you want to learn more about sustainable concrete.

Building a Sustainable Future: Harnessing Recycled Materials for New Construction

by Mary Klett, ASA Communication Team

As the world faces pressing environmental challenges, the construction industry is embracing a transformative shift towards sustainable practices. There’s a lot of pressure on engineering and construction companies to lower the carbon footprint of new and retrofit construction projects. One notable approach gaining traction is the use of recycled materials. By repurposing waste into valuable resources, this innovative method not only reduces environmental impact but also offers significant cost savings. In this article, we will delve into the benefits of utilizing recycled materials, citing studies on cost savings and environmental impact, exploring innovative designs, and showcasing inspiring examples of new construction in the United States.

Cost Savings and Environmental Impact:

1. Cost savings: Incorporating recycled materials into construction projects can lead to substantial economic advantages. Studies have shown that using recycled materials can result in cost savings ranging from 10% to 20% compared to traditional construction methods. Recycled materials, such as reclaimed wood, salvaged metal, and crushed concrete, can be sourced at lower prices, reducing material acquisition expenses.

2. Environmental impact: The environmental benefits of utilizing recycled materials in construction are undeniable. By diverting waste from landfills, this practice reduces the need for raw materials extraction, conserving natural resources and energy. Additionally, recycled materials often require less energy during the

manufacturing process, resulting in lower greenhouse gas emissions. A study conducted by the U.S. Environmental Protection Agency (EPA) estimated that construction and demolition waste accounts for nearly 40% of the total waste stream. Implementing recycled materials can significantly decrease this impact and promote a circular economy.

Innovative Designs:

1. Shipping container architecture: One of the most remarkable examples of using recycled materials is the growing popularity of repurposing shipping containers as building units. These durable and stackable containers offer an affordable and sustainable alternative to traditional construction.

From offices and schools to residential spaces, architects and designers have embraced the versatility of shipping container structures, which can be modified to meet various functional and aesthetic requirements.

2. Recycled plastic building blocks: Plastic waste poses a significant environmental threat, but innovative solutions are emerging. Companies are now manufacturing building blocks made entirely from recycled plastic, offering a durable and lightweight alternative to traditional construction materials. These blocks are not only sturdy but also easy to assemble, providing cost-effective and sustainable options for affordable housing and disaster relief efforts. (Why plastic waste is an ideal building material).

Check out ByFusion in Los Angeles.

Examples of New Construction in the United States:

1. The Bullitt Center, Seattle: Located in Seattle, Washington, the Bullitt Center is a pioneering example of sustainable construction. Built to meet the Living Building Challenge, the six-story structure boasts a range of recycled materials, including salvaged wood, recycled steel, and reclaimed bricks. It features rainwater harvesting, solar panels, and composting toilets, making it one of the greenest buildings in the world.

2 .While many examples exist in Europe, check out Austin’s Central Library in Texas as an example of sustainable construction. Natural light illuminates much of the atrium – this

reduces the structure’s dependence on electric lighting. A rooftop rainwater harvesting system supplies the restrooms and also waters the surrounding gardens and landscaping. Architects also designed the library using ecofriendly materials, with a high proportion of recycled or locally produced elements. In the end, it operates 30 percent more efficiently than the energy code requires.

Decarbonizing what is today a very carbon-intensive industry will require the combined ingenuity and efforts of architects, designers, builders, subcontractors, suppliers, technology service providers, and operating owners. The adoption of recycled materials in new construction presents a sustainable solution that addresses

both environmental concerns and economic benefits. By reducing waste and minimizing resource extraction, construction projects can significantly decrease their carbon footprint. The cost savings associated with using recycled materials further incentivize this eco-friendly approach, making sustainable construction a viable option for a wide range of projects. As we move towards a greener future, embracing innovative designs and learning from inspiring examples like the Bullitt Center and Austin’s Central Library will undoubtedly pave the way for a more sustainable built environment. By utilizing recycled materials, we can build a brighter future where construction is in harmony with our sustainable goals.

About the Author:

Mary Klett has been part of the ASA communications team for more than four years. Her background includes all aspects of marketing and communication, and she enjoys the chance to research and write longer articles on occasion. She can be reached at mklett@asa-hq.com

2023 SESCO Webinar Series (Part 1)

SESCO is pleased to announce our training schedule for 2023. With the overwhelming success of participation and positive client feedback in 2022, the following provides our topics and dates. Schedule early as the events fill up quickly.

in Recognizing & Preventing Harassment and Discrimination

24: Understanding the Ins and Outs of Medical Leave of Absences

May

As experts in employment law compliance, SESCO will explore the practical application of crucial federal regulations such as the Americans with Disabilities Act and the Family Medical Leave Act. Further, we will delve into these pertinent and complex regulations to give participants a fundamental understanding on how to navigate and apply these regulations compliantly within their organization.

This session focuses on the intent and purpose behind ADAAA and FMLA and will cover the basic interpretations and practical applications of the law. Additionally, we will discuss and demonstrate how to reduce liability by avoiding common compliance mistakes. Participants will learn how to properly engage in the interactive Reasonable Accommodation process for ADAAA and effectively manage FMLA leave for eligible employees.

Key take a ways include:

• Understand the basic requirements of ADAAA and FMLA regulations and the impact to the organization.

• E xplore the most common violations and how to avoid them.

• Recognize whom and when to apply the ADAAA and FMLA regulations and supporting documentation.

• A ssist employees in handling accommodation and leave appropriately to protect yourself and the company from liability.

June 7: Management’s

Role

Harassment is rampant and it happens daily in our workplace. Whether it’s Hollywood, politics, academia, or business, you cannot escape the reports of misconduct in the workplace. With the heightened awareness, employers must do what they are required by law and in their power to prevent harassment in the workplace. This session will explore the true definition of harassment and discrimination under Equal Employment Opportunity regulations, such as Title VII of the Civil Rights Act, and the problems caused by inappropriate workplace behavior. Additionally, we will focus on preventing sexual harassment and discrimination, how to respond to harassment or discrimination, how to address unwelcome behaviors, the negative impacts of workplace misconduct, proper procedures for reporting and investigating complaints and consequences of false accusations. Last, we will cover how leadership should properly handle and respond to charges of discrimination received from the Equal Employment Opportunity Commission.

June 21: How to Conduct Internal Investigations

Are you prepared to conduct a proper investigation? Will it comply with all Federal, State, and local laws and all your policies? Will that investigation be objective and respect all party’s rights? Will it be presented in a professional manner?

If done properly, an internal investigation can help get to the bottom of things. If done wrong, it all too often makes things worse. The challenge of complying with all applicable standards/ regulations is to educate and update all who are responsible for conducting investigations within the organization. Otherwise, they may not have the tools or skill sets to be aware of all those

obligations and responsibilities which in turn can lead to unintentional violations of law and challenges to the integrity and credibility of the investigation and its results/conclusions.

In short, this webinar is designed to provide you and your organization with a fundamental understanding of what’s required to conduct an effective and professional investigation while minimizing risk (financial, legal, damage to internal and external reputation, etc.).

Presenters include:

• Mr. William E. Ford, President and CEO

• Mr. Joel Cullum, Senior Vice President

• Ms. Jamie M. Hasty, Vice President

Tuition: $60.00 per person, per webinar

Schedule:

Every other Wednesday, beginning March 2023 – June 2023 1:00-2:30 pm Eastern time

Please click HERE to purchase and register for SESCO’s 2023 Webinars

Cancellation Policy:

Requests for cancellations or substitutions will be honored if they are received seven (7)days prior to the beginning of the seminar. The person(s) may be registered for another webinar session or other names may be substituted; otherwise, the company will be billed for the full

Why Adopting Alternative Power Sources in Construction Is a Must

by Chad Pearson, Plexxis Software

In recent years, construction job sites have felt the heat of stricter regulations on carbon-based fuel sources. But, as they say, when one door closes, another opens. This is an opportunity for construction sites to embrace the future and adopt alternative forms of power that are not only better for the environment but also wallet-friendly in the long run. Let’s dive into why alternative power sources are the way to go for construction sites and explore some of the options available.

Advantages of Alternative Power Sources

Switching to alternative power sources in construction is like hitting the jackpot! Not only will you be saving money by ditching those costly generators, but you’ll also be doing your part to save the planet. Think about it, solar energy is a renewable resource that can be harnessed with photovoltaic

(PV) systems, turning sunshine into electricity. You can use it right away or store it for later, it’s like having your own personal battery charger. And the best part? Many forms of alternative energy are emissions-free, which means you may even qualify for some sweet government incentives.

But it’s not just about saving money, alternative power sources also make your job site a safer place. Traditional fossil-fueled equipment like generators require regular refueling, which can be a risky business. But with alternative options like hydrogen fuel cells, you don’t have to worry about refueling at all! Plus, electric tools don’t require combustible materials like traditional gas-powered tools, so you don’t have to worry about any fire hazards. All in all, switching to alternative power sources is a no-brainer. More efficiency, costeffectiveness, and safety, what more

could you want? It’s a win-win situation! When it comes to powering your construction job site, you’ve got plenty of choices to pick from. Check them out below:

Solar Energy: As mentioned before, PV systems harness the power of the sun, converting it into electrical energy that can be used on-demand or stored for later. It’s a great alternative to fossil fuels as it’s widely available and only becoming more efficient as technology advances.

Hydroelectricity: Water turbines convert the kinetic energy from flowing water into electrical energy, providing a low-cost option for those with access to rivers or lakes with sufficient flow.

Wind Energy: Wind turbines convert kinetic energy from gusts of wind into electrical energy, which can then be used directly or stored in batteries for later use again just like with

Image source: flexfleetrental.com

hydroelectricity above – though wind turbines don’t require access to bodies water like hydroelectricity does so they can potentially be located almost anywhere with enough wind present (depending on local regulations).

Biomass & Biofuels: These renewable fuels are produced from organic materials such as plants or animal waste, making them an attractive option for replacing diesel or petrol engines on job sites. Biogas produced through fermentation processes is one such example.

Geothermal: Heat pumps extract heat from deep within the earth’s surface, providing efficient heating solutions with lower running costs than traditional fossil fuels.

Say goodbye to fossil fuels, hello to alternative power sources! With the cost of fossil fuels on the rise and regulations cracking down on their

environmental impact, it’s time to switch things up on your construction job site. But don’t worry, finding the perfect alternative power source for your needs is a piece of cake. From solar energy,

to hydroelectricity, to wind energy, to biomass and biofuels, to geothermal, the options are endless. And the best part? Not only will you be saving money in the long run, but you’ll also be doing your part to save the planet. So, let’s make the switch and show Mother Earth some love!

About the Author

Chad Pearson is Director, Business Development for Plexxis Software Plexxis serves subcontractors who seek elite team cohesion and performance. Their platform unites operations, estimating, accounting and field apps on a single technology stack that enables live feedback between bidding, field and finance while in-house services drive continuous adoption. This article is reprinted with permission from Plexxis.

Cities Converting Offices to Homes

Since the pandemic, many cities are struggling to survive the loss of commercial real estate.

Check out the pros and cons, difficulties and perks in this Associated Builders and Contractors (ABC) article.

Image Source: engineeringa2z.com

Image Source: abpdu.lbl.gov

wants to help you with Risk Transfer

The following are important coverage considerations before executing a sub-contract agreement with an upper tier.

INDEMNIFICATION REVIEW

Are you indemnifying Owner/Developers, GC’s and Prime Contractors for contract provisions that are not covered by your Liability Insurance?

ADDITIONAL INSURED REQUIREMENTS

Does your Additional Insured coverage comply with contract language?

COVERAGE RESTRICTIONS & EXCLUSIONS

Do your insurance policies include coverage exclusions and conditions which may either restrict or not respond at all to certain contractual obligations you entered into, and land you in breach of contract litigation?

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