Issue 1 | 2019 Construction Today Magazine by General Building Contractors Association

TODAY

ISSUE 1 | 2019

CONSTRUCTION PUBLISHED BY THE GENERAL BUILDING CONTRACTORS ASSOCIATION

WE BUILT THIS SKYLINE. THE EVOLUTION OF THE CONSTRUCTION INDUSTRY: REFLECTING ON OUR PAST; BUILDING OUR FUTURE

ISSUE 1 | 2019 1

EVERYBODY | EVERYWHERE | EVERYDAY

L.F. Driscoll Co., LLC is an EEO/ AA employer, M/F/D/V

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LETTER FROM THE PRESIDENT

A building is only as strong as its foundation, and an association is only as strong as its members. I’m grateful for the opportunity to lead an organization comprised of such talented and dedicated professionals. No matter what challenges may lie ahead, my conviction that the future is bright for GBCA could not be stronger. This is thanks to you, our members. Together, you bring a tremendous breadth of knowledge and resources to the industry and to each other. As our industry advances, GBCA must grow and evolve as an association. We are committed to strengthening relationships with industry organizations, related associations, and labor unions who share our similar goals. Through our mutual partnerships, we are bringing more to the table in advocacy meetings, and we can offer even more networking opportunities for like-minded industry professionals throughout the region.

Our members are evolving in the ways they build and work. This means incorporating the latest technology, using cutting-edge techniques, making worksites safer, and successfully advocating for the advancement of our industry throughout the Philadelphia region. While looking ahead, we should be careful not to lose sight of our past either. The construction industry has a rich history here in Philadelphia. We’re proud to highlight two member companies who are celebrating major milestone anniversaries. Their reflections in this issue send an inspiring message for all of us: how to successfully adapt to changing times while remaining steadfast in your core values. As we continue to support each other, our efforts to build a strong future for the commercial construction industry will only grow. We know we are more powerful when we are united. I’m looking forward to a strong 2019.

Benjamin J. Connors, Esq. President

General Building Contractors Association

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CONSTRUCTION

TODAY PUBLISHER/EDITOR Lauren Hanan ADVERTISING/SALES Lauren Hanan CONTRIBUTING WRITERS Amy Novak / Rebecca Pizzi / Matt DeBasio / Amanda Gibney Weko / Courtney Vitale / Mark A. Guillaume/ Jeff Banasz / Lauren Hanan DESIGN Punch Garage ACCOUNTING Kristin DeFrancisco

EDITORIAL OFFICE General Building Contractors Assn., Inc. 36 South 18th Street Philadelphia, PA 19103 P: 215-568-7015 F: 215-568-3115

NOTES

PRINTING RoyerComm 7120 Airport Highway Pennsauken, NJ 08109 P: 856-665-6400

FROM THE PUBLISHER We are winning. In 2018, GBCA received national awards for our marketing campaign, #ExcellenceisBuilding. We were awarded a national grant from the Associated General Contractors of America (AGC) to host free Fall Protection Trainings for our members. GBCA President, Ben Connors, was named a Top Young and Aspiring Professional, and Lance Claiborne was named a Leading Lobbyist by Association Trends. We are cultivating the next generation. GBCA and its members are making great strides in leading the next generation of the commercial construction industry. Through strategic workforce development initiatives, our association is assisting to build a stronger, more diverse workforce. We’re also doing more than ever before with our Construction Leadership Council; we are now recognized as a national leader, as Philadelphia was chosen to be the host city for the 2019 Leadership Development Conference for the CLC, taking place September 12-13, 2019.

We are building reputation. A reputation of a skilled, safe, and efficient workforce. The members of GBCA represent the finest in craftsmanship and dedication. And, your GBCA is working hard to make sure you are getting the recognition you deserve. We’ve secured exciting and valuable media partnerships for 2019 with 6ABC, 97.5 The Fanatic, and The Philadelphia Business Journal in order to reach a broad audience of the greater Philadelphia region. We’re producing segments focused on technology, diversity, and workforce development. Additionally, we’re producing a GBCA-branded video library that highlights some of the best services and values we provide to our members, with testimonials from our members. We are excited for our future. 2019 is sure to be a year of more wins, more service, and more member engagement. If you are interested in contributing to our video series, writing for Construction Today, or recording an ad for the radio, please feel free to contact me. Excellence is Building in the Philadelphia region; and we want to tell the world about it!

Lauren Hanan Director, Marketing & Communications General Building Contractors Association

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© Copyright CONSTRUCTION TODAY® registered in U.S. Patent and Trademark Office Copyright ©2004 by the General Building Contractors Association. All rights reserved. Submissions for editorial review should be sent to the editorial office address. Neither the publisher nor any individual associated with any branch of production, nor the advertisers will be liable for misprints or misinformation contained herein. PRINTED U.S.A.

General Building Contractors Association theGBCA

@gbca

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ISSUE 1 | 2019 3

CONTENT

ISSUE 1 | 2019

ASSOCIATION UPDATES

08 EVENT PHOTOS Snapshots from the Membership Dinner, BIM Education

Series, Active Member Dinner, CLC programs, and more.

12 B UILDING A LEGACY, BUILDING THE SKYLINE

Two GBCA Members Celebrate Major Milestone Anniversaries

22 ANNUAL MEETING RECAP

We acknowledged the changing of GBCA’s Chairman of the Board and honored several individuals throughout the evening

FEATURES AND CONTRIBUTED ARTICLES

24 S AFETY Construction sites can be a hazardous place, but they can become a safe work environment

26 EVOLUTION IN HOSPITAL CONSTRUCTION & DESIGN How healthcare facilities are designed, engineered

and constructed

30 S KANSKA EMBRACES CULTURAL CHANGES FOR IPD SUCCESS

Integrated Project Delivery to optimize project results

32 BIM: PREPARING FOR TAKEOFF

Seizing the opportunity to get more out of your investment in BIM

34 NACC CASE STUDY: THE CONTRACTOR’S PERSPECTIVE Looking at projects from a different angle 36 CONSTRUCTION OWNER STRATEGIES UNDER TAX REFORM Harness tax opportunities through insight, vision, intrigue, discovery, and strategy

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IN EVERY ISSUE 15 LEADERSHIP SPOTLIGHT 16 PROJECT SPOTLIGHT

A look at the Linode Corporate Headquarters Relocation project

44 WELCOME NEW MEMBERS 44 REFERRAL DIRECTORY

38 TIPS TO DEVELOP YOUR 40 USING PREMIUM FINANCE CONSTRUCTION COMPANYâ&#x20AC;&#x2122;S TO ADDRESS COMPLEX SUCCESSORS CONSTRUCTION ISSUES

Planning for the next stage of your business

Stabilizing your cash flow

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CONTRIBUTORS

AMY NOVAK

REBECCA PIZZI

MATT DEBASIO

Project Executive, Torcon

Project Executive, Skanska USA

CM-BIM- P. Agnes

AMANDA GIBNEY WEKO

COURTNEY VITALE, CPA

MARK A. GUILLAUMEâ&#x20AC;&#x2039;

Principal, AGW Communications, on behalf of Administrative Management Systems, Inc.

Tax Director, CBIZ MHM, LLC

JEFF BANASZ

LAUREN HANAN

Senior Vice President, Marsh

Director, Marketing & Communications, GBCA

Director Audit & Accounting, Kreischer Miller

Would you like to be a contributor to the next issue of Construction Today? Contact Lauren Hanan at lhanan@gbca.com or 215-568-7015. 6 CONSTRUCTION TODAY

Adaptimmune Therapeutics Headquarters Fit-out

Virtua Health & Wellness Center

Temple University Science Education and Research Center

Subaru of America Headquarters

Making a difference in the lives of our people, customers, and community. Full Engagement Cradles to Crayons Volunteer Event

#1 General Builder

Engineering News-Record

#1 Healthcare Builder

Modern Healthcare

#1 Green Builder

Right Environment

Engineering News-Record

Stretch and Flex

Lean Culture Pull Planning

Living Injury Free Every Day Safety Pre-Task Planning

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Turner Construction Company 1500 Spring Garden Street, Suite 220 Philadelphia, PA 19130 (215) 496-8800 www.turnerconstruction.com/philadelphia ISSUE 1 | 2019 7

EVENTS

CONSTRUCTION EXCELLENCE AWARDS On Thursday, November 8, 2018, GBCA members and guests filled Vie Ballroom to honor and celebrate the winners of the 2018 Construction Excellence Awards. GBCA’s Construction Excellence Awards Program is the premier construction awards program recognizing excellence in construction and safety. Now in its 21st year, The Excellence Awards Program is dedicated to creating an awareness of the quality workmanship produced by GBCA member companies. Congratulations to all of the winners and thank you to the judges and sponsors of the event.

AN OWNER’S PERSPECTIVE On Monday, November 10, 2018, the AIA/GBCA Joint Committee held An Owner’s Perspective: Part II. This discussion gave the opportunity for ACE industry members to learn about what owners and developers want when planning construction projects. Thanks to all who attended, and special thanks to our speakers: Panelists: Michael Asnes, Vice President of Construction, Dranoff Properties, Inc.; Brian Cohen, Vice President & City Manager, Liberty Property Trust; Lindsey Scannapieco, Managing Partner, Scout; Moderator: Anne Papageorge, Vice President for Facilities and Real Estate Services at the University of Pennsylvania

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CAMP OUT FOR HUNGER On Tuesday, November 27, 2018, GBCA President Ben Connors, GBCA’s Construction Leadership Council Steering Committee, Amquip Crane Rental - Bensalem, Pa, Representatives from Keystone + Mountain + Lakes Regional Council of Carpenters, and Carpenter Contractor Trust visited The Preston & Steve Show’s Camp Out for Hunger at XFINITY Live! Ben gave an interview with Preston and Steve, noting the role of union construction in building Philadelphia’s skyline, and also announcing GBCA’s donation: 42 tons, or 84,000 lbs., of fresh produce to Philabundance!

CONSTRUCTION TECHNOLOGY EXPO On November 29, the General Building Contractors Association (GBCA), Architectural Glass & Metal Assoc (AGMA), Employing Bricklayers Assn of Delaware Valley (EBA), the Mechanical & Service Contractors Association of Eastern PA (M&SCA), and the Penn-Del-Jersey Chapter, NECA presented Philadelphia’s first ever Construction Technology Expo! Over 100 attendees from the construction industry and the Drexel University Construction Management Program and Engineering Department communities came to see the new applications, tools, and platforms from over 20 exhibitors. They also took part in discussions with other contractors about opportunities and challenges with implementing new technologies in the field.

HOLIDAY PARTY AND HOLIDAY TOY DRIVE Thank you to everyone who attended GBCA’s Holiday Party on Wednesday, December 6, 2018 at the Hall of Fame Club at Citizens Bank Park! On Thursday, December 20, 2018, GBCA made a special holiday delivery to Northern Children’s Services. GBCA’s Construction Leadership Council collected over 150 toys through its Holiday Toy Drive at GBCA’s 2018 Holiday Party. We also collected $1500 for Northern Children’s Services to buy additional toys and holiday needs! Thank you to all who donated toys and funds to help make the 2018 holiday season a happy one for everyone in Philadelphia. ISSUE 1 | 2019 9

MLK DAY OF SERVICE On January 21, 2019, volunteers from GBCA, the ACE Mentor Program of Greater Philadelphia, Clemens Construction Company, Keystone + Mountain + Lakes Regional Council of Carpenters came together for a 2019 Martin Luther King Day of Service project. Volunteers met at Kingsessing Recreation Center in Philadelphia to build cedar wood garbage can enclosures for the neighborhood. Special thanks go to the ACE Mentor Program of Greater Philadelphia’s students and mentors (from Stantec, University of Pennsylvania, and Gilbane Building Company, and local dignitaries—Philadelphia City Councilwoman Jannie Blackwell, PA State Senator Anthony Hardy Williams of the 8th District, and State Representative Joanna McClinton of the 191st District.

CLC LEADERSHIP SERIES: COMMUNICATING WITH DIPLOMACY AND TACT On February 13, 2019, GBCA’s Construction Leadership Council (CLC) hosted its first Leadership Series Workshop for 2019: Communicating with Diplomacy and Tact. Mike Iorio of Dale Carnegie Training facilitated the sold-out workshop. During the workshop, participants learned reflected on how they communicate with one another, how to interpret other people’s communications, and strategies on changing and improving their communication skills.

SPONSOR THANK YOU RECEPTION On February 21, 2019, GBCA’s Board of Directors hosted a reception to thank all of the sponsors of GBCA’s 2018 events. We are grateful and appreciative of our member companies that supported our events in 2018: Our events are successes because of our sponsors!

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LAST PLANNER WORKSHOP On February 28, 2019, GBCA hosted the Last Planner System Workshop. Led by Christian Pikel, Managing Principal and Senior Coach of The ReAlignment Group, this full-day workshop provided information, hands-on practical training, and simulations to help participants successfully start implementing the Last Planner® System at any phase of the building project with their project teams at their firms. The Last Planner® System is one of the hallmark collaborative planning tools supporting lean design and construction.

EGGS WITH OSHA On March 1, 2019, despite snowy road conditions, Philadelphia Region Safety Professionals gathered for the first Eggs with OSHA of 2019! In addition to updates from OSHA, attendees learn more about new construction technologies with safety applications. Bob Dolan, National Sales Director of Triax Technologies, presented about Spot-r devices, and Josh Kanner, Founder and CEO of Smartvid.io, presented about Smartvid.io’s AI photo manager.

SPRING MEMBERSHIP DINNER On Thursday, March 14, GBCA held its annual Spring Membership Dinner at the Lucy by Cescaphe. Gerard Sweeney, President and CEO of Brandywine Realty Trust, was the featured speaker, and he spoke about upcoming trends in the Philadelphia Region's development.

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BUILDING A LEGACY, BUILDING THE SKYLINE: Two GBCA Members Celebrate Major Milestone Anniversaries Michael Erickson, President of C. Erickson and Sons, Inc., with Blank Rome, LLP's then Chairman Jack Bershad (left) and then Managing Partner David Girard-diCarlo (right). The first project C. Erickson completed for Blank Rome, LLP is the pictured conference center. The project was completed in the late 1980s and C. Erickson continues to work for Blank Rome, LLP today.

While the roots of the construction industry in Philadelphia extend as far back as the colonial and revolutionary era, the early 20th century was a time of bustling construction activity in our region. 1918 was a year of particular significance, it is the year that James J. Clearkin, Inc., the family company of incoming GBCA Board Chairman, Joseph P. Clearkin, was established. Another year of note was 1954, the year C. Erickson & Sons, Inc., was founded. GBCA Board Member, Michael G. Erickson is now the President of C. Erickson & Sons. Over the past several decades, the construction industry has evolved at a rapid pace â&#x20AC;&#x201D; in building innovation, techniques, and technology. Yet executives at both companies agree that a strong team and a commitment to their customers and the communities they serve continue to guide the company. Read the two interviews below to learn a little more about each company

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Is your company or an executive at your company celebrating a special milestone or anniversary? Weâ&#x20AC;&#x2122;d like to feature you in an upcoming edition of Construction Today! Contact Lauren Hanan at lhanan@gbca.com.

C. ERICKSON & SONS WHEN WAS THE COMPANY FOUNDED AND BY WHOM? Charles G. Erickson, Jr. in 1954 HOW DID THE COMPANY GET STARTED? Charles was working for a construction company that went out of business. Because of the relationships he had formed, he was able to pick up old clients and build his reputation as a company owner. Fun Fact – Charles added “and Sons” while he was starting his family in anticipation of them joining the business. He thought it would give the appearance of longevity.

Michael G. Erickson President C. Erickson & Sons

HOW HAS THE COMPANY GROWN OVER THE PAST 65 YEARS? The company's roots are in interior renovations and we have continued with that as the core of our business. Our first real continuous work was with Reading Railroad Company and the second was Sun Oil. Over time, the company built a diversified portfolio. The largest job completed by the founders was a renovation of the Bellevue Stratford Hotel to the Fairmount Hotel in the late 70s. I think the real reason we were able to grow is because my father was forced into the office due to injury. It required him to hire good people he could depend on and allowed him to grow relationships and chase new opportunities.

“Being a builder gives you the unique ability to experience your accomplishments for decades. I can look at the skyline and know we contributed to the success of the city." - Michael G. Erickson

WHEN DID YOU GET INVOLVED WITH THE COMPANY? HOW DID YOUR DAD PREPARE YOU TO ONE DAY TAKE OVER? I was surrounded by the business my entire life. I grew up sorting nails in barrels from middle school on. I helped over summers and holidays when I became old enough to work in the field. I learned the business from the ground up, performing every position in the field and in the office. I went to Spring Garden College for a degree in construction management and engineering and graduated in 1976. I entered the business full time immediately after graduation. My brother, Charlie, joined the business immediately after high school, eventually to lead us as President. Charlie recently retired and I have now assumed the role of President alongside long-term employees Michael Carullo and Dan McNichol who were elevated to Principals of the firm. WHAT’S THE NUMBER ONE LESSON YOU’VE LEARNED FROM THE BUSINESS? We’ve always practiced mature growth. We don’t experiment – we’ve committed as we entered new sectors, growing from corporate interior renovation to healthcare renovation to new construction. Safety comes first. We’ve also stayed true to our roots in carpentry and millwork. We are aggressive with implementing technology to stay current for both ourselves and our clients. We treat the business like an extended family, retaining employees with long-term tenure. Our success is a result of our people. THOUGHTS ABOUT THIS INDUSTRY? It's apparent that we have an aging community of skilled craftsman. We, as an industry, have to do a better job at attracting young people and mentoring them. I'm happy to say we, as a company, are evolving. We are growing our younger team members and transitioning them to leadership roles. Philadelphia, in particular, is a city based on relationships, resulting in the tendency to renovate for the same people, whether through capital improvement programs for previous clients or clients bringing us back in when they move to new space. Being a builder gives you the unique ability to experience your accomplishments for decades. I can look at the skyline and know we contributed to the success of the city. For example, we’ve worked for the Franklin Institute for generations and seeing new generations enjoying and learning through iconic cultural institutions like this one is a constant reminder of the meaningful work we do. ISSUE 1 | 2019 13

JAMES J. CLEARKIN, INC. WHEN WAS THE COMPANY FOUNDED AND BY WHOM? James J. Clearkin was founded in 1918 by our grandfather, James J Clearkin, Sr. WHAT TYPE OF WORK DID THE COMPANY DO UPON INCEPTION? Our grandfather was a bricklayer by trade. The company was started as a small bricklaying company.

Joseph P. Clearkin Executive Vice President James J. Clearkin, Inc.

“It is an honor to be able to carry on in my grandfather’s and my dad’s, Jim Jr.’s, footsteps. Our attention to detail remains the same — and the personal touch when working with James J. Clearkin, Inc. You know that you will always be dealing with a Clearkin in every capacity" - Joseph P. Clearkin

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HOW HAS THE COMPANY GROWN OVER THE PAST 100 YEARS? In the 30’s and 40’s, the majority of the work was industrial and commercial; then in the 50’s and 60’s with the baby boom, institutional work flourished with both public and private school work along with church work. In the 80’s, healthcare work was added to our resume, all while keeping our industrial/commercial construction roots. Fire Restoration, Food Plant Construction, Office Fit-out, Retail Work, Computer Room Construction and Exterior Building Restoration has continued to be an integral part of our business. WHEN DID YOU GET INVOLVED WITH THE COMPANY? I started with the company in 1979. WHAT’S THE NUMBER ONE LESSON YOU’VE LEARNED FROM THE BUSINESS? Honesty with our clients; and never over promise what you can’t deliver. THOUGHTS ABOUT THIS INDUSTRY? To continue striving to provide clients with quality, cost effective construction, as well as the unequaled personal attention that has kept us successful for nearly 100 years. This will hopefully carry us into our Second Century of Service.

LEADERSHIP SPOTLIGHT Born and raised in Washington, D.C., it has always been an amazing experience watching Philadelphia's revitalization from urban blight to urban renewal. Attending the University of Maryland and receiving a bachelor’s degree in Construction Management Technology, paved the way for me to apply what was learned in class to what I can be taught in the field. I started out as a project engineer in Skanska’s Rockville office where I had the opportunity to work on a $230 million project. Even though it was my first project with Skanska, there was so much to learn and many questions were asked on such a large project. As time went on, I grew a desire to get involved with environmental, health and safety. There were times I thought, we are getting things built, but people are getting hurt, what can be done to ensure they go home the way they came to work. This was my slogan as I was filling in as an EHS coordinator at NOAA’s headquarters project in Maryland.

REGGIE ASARE SKANSKA USA INC. CLC COMMITTEE CHAIR

There was a passion for safety that everyone recognized. I was determined to prevent loss time accidents and with this mentality, a member of Skanska’s senior leadership team and our regional co-chief operating officer offered me the opportunity to work full time as an EHS coordinator for the Blue Bell office. Since then, working under Frank Baxter, there has been much added value in: explaining why I do what I do, building relationships with tradesmen and the project team, planning ahead, leading by example, and showing that caring attitude. Philadelphia offered me so many opportunities and there is something always going on. As a CLC chair, there have been many occasions to meet people, travel, learn more about other contractors, and a way to give back. I look forward to continuing this wonderful opportunity with the CLC and always looking for chances to be involved. Please be a part of making a difference, helping one another, and moving the industry ahead. I look forward to meeting all of you.

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PROJECT SPOTLIGHT

Building Exterior The limestone exterior faรงade of the building was restored to its neoclassical glory and features colossal engaged limestone columns and a granite stoop with wood, bronze and glass sliding pocket doors.

Photo Credit: Halkin Mason Photography

LINODE CORPORATE HEADQUARTERS RELOCATION GENERAL CONTRACTOR

ENGINEER

C. Erickson & Sons, Inc.

HPE Group | MEP Engineer Dawood Engineering | Site Engineer

ARCHITECT Ballinger GBCA SUBCONTRACTORS Belcher Roofing 16 CONSTRUCTION TODAY

CONSULTANTS The Lighting Practice | Lighting Consultant

SUMMARY When Linode LLC, a fast-growing technology company founded in South Jersey, decided to relocate its corporate Headquarters to Philadelphia, they turned to the expertise of C. Erickson & Sons to assist with the fit-out and restoration of their new offices in Old City. Linode purchased the historic former Corn Exchange National Bank building at 3rd & Arch St., also once home to MTV's "Real World: Philadelphia". The owner and CEO of Linode, Chris Aker, made a significant financial and personal investment to bring back to life this historic landmark that is on the Philadelphia Register of Historic Places. C. Erickson & Sons served as construction manager and provided preconstruction and general construction services for the 22,300 SF, three-story building to restore the interior and exterior and convert it into office space. The building which had formerly served as a bank, residence, art gallery, and event space was transformed back to its neoclassical origins while simultaneously being adapted into the corporate offices of a contemporary tech company.

The exterior limestone faĂ§ade, columns, and windows of the building were rehabilitated. Complete replacement of the roof, plumbing and electrical system, and third-floor sky light were undertaken. The existing historic elevator was retained and rehabilitated. A new hub on the first floor was created which now serves as a gathering space. Glass-enclosed meeting spaces were created flanking the restored open, double-story banking hall. Architectural details were retained and incorporated into functional applications for the companyâ&#x20AC;&#x2122;s office space. In the basement, the foundation of the original Union Bank dating back to 1858, archways were built into the original red brick vaults and converted into lounge-like huddle rooms. The massive bank vault was retained and also restored. High-efficiency HVAC units were installed and concealed in the ceilings throughout all rooms along with automatic LED lighting. A central light fixture in the atrium now serves as a center piece and forms the Linode logo.

Atrium The double-story banking hall now houses glass-enclosed meeting spaces flanking both sides, a new hub that serves as a gathering space, and a central light fixture that forms the Linode logo.

ISSUE 1 | 2019 17

Skylight The third-floor sky light was completely replaced and rehabilitated to allow for natural daylighting above workstations.

PROJECT DETAILS Erickson’s team worked closely with the owner, design team, and numerous trade contractors to accomplish the major renovations to restore the former bank building to its early 20th century glory. The project was undertaken using principles of an Integrated Project Delivery (IPD) process, working as a collaborative team with the designer and owner early in the project life cycle. The project also employed an MEP Design-Build Process with Erickson managing the Mechanical, Electrical, Plumbing and Fire Protection (MEP/FP) Engineering. As a fixture of Philadelphia's culture and history and a landmark on the Philadelphia Register of Historic Places, the historic elements of the building were retained and restored to museum-like quality using the most skilled local craftsmen and preservationists. Erickson not only employed their own skilled craftsmen, but also engaged the expertise of Materials Conservation to manage the restoration and preservation of the historical elements in the building. For example, layers of paint were removed from original materials including brick, marble and mahogany wood. Historic plaster finishes were revived, and painstakingly hand painted by local craftsmen where the finish was beyond repair. 18 CONSTRUCTION TODAY

Architectural details were retained and incorporated into functional applications for the company’s office space. Archways were carved by hand into the red brick walls of the original vault in the basement dating back to 1858, the original foundation of the Union Bank. The space was converted into relaxed, lounge-like huddle rooms. The massive original bank vault was restored and retained for future use. The location of the building in one of Philadelphia’s most historic and touristy neighborhoods presented a challenge in completing the exterior work to the building. Erickson coordinated extensive scaffolding, building protection and right-of-way closures when exterior and roofing work was taking place to not only protect the public on this busy thoroughfare in Old City, but to also protect the adjacent Historic Betsy Ross House. This project not only restored a historic landmark in Old City, but also had the significant economic impact of bringing over 150 new jobs to Philadelphia. Linode is still growing and continuing to make an impact on the tech industry in the City. Linode has welcomed the community into its space to share the restoration and transformation of the building. The company’s move to Philadelphia has received much community recognition and praise, including from Mayor Jim Kenney himself.

Grand Staircase to Basement The historic grand stairs required a variance to be used without modifications. The balusters and marble walls in the basement were restored one-by-one with replicas to match the original.

Linode Corporate Headquarters Relocation received a 2019 Preservation Achievement Grand Jury Award from the Preservation Alliance of Greater Philadelphia as well as the CREW Philadelphia 2018 Community Impact Award.

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SAFETY, HEALTH & RESCUE SERVICES RESCUE SERVICES s SAFETY TRAINING SAFETY CONSULTING s SAFETY EQUIPMENT HEALTH SERVICES s FALL PROTECTION

WHO WE ARE MED-TEX SERVICES, INC. HAS BEEN PROVIDING SAFETY, HEALTH AND RESCUE SERVICES FOR OVER 30 YEARS. As a valued partner, Med-Tex has successfully addressed the strategic and day-to-day needs of facilities and contractors. Med-Tex is a highly dependable source for fully trained and certified professionals that provide a wide range of services 24 hours a day, 7 days a week.

Here to support you

INDUSTRIES SUPPORTED Med-Tex has proven experience supporting almost every industry including, but not limited to: • Petrochemical • Terminal & Bulk Oil and Gas Facilities • Power Generation and Distribution • Industrial Construction • Commercial Construction • Life Sciences • Manufacturing • Education • Healthcare • Government and Municipalities

Our teams are available 24 hours a day, 7 days a week. Headquarters – Training Facility: 6940 State Road, Unit E • Philadelphia, PA 19135 Delaware Operations: 527 Stanton Christiana Road • Newark, DE 19713 Billing Address: P.O. Box 240 • Penns Park, PA 18943

info@med-texservices.com Tel: 215-676-3536 – Toll Free: 855-5MEDTEX www.med-texservices.com

2019 OSHA

10 AND 30 HOUR TRAINING COURSES Med-Tex Services, Inc. will be conducting the following OSHA Training courses at our facilities:

Headquarters – Training Facility: 6940 State Road, Unit E • Philadelphia, PA 19135 Delaware Operations: 527 Stanton Christiana Road • Newark, DE 19713 The OSHA Outreach Training Program for the Construction Industry provides training for workers and employers on the recognition, avoidance, abatement, and prevention of safety and health hazards in workplaces in the construction industry. The program also provides information regarding workers’ rights, employer responsibilities, and how to file a complaint. The 10-hour class is intended for entry level workers, while the 30-hour class is more appropriate for supervisors or workers with some safety responsibility. Through this training, OSHA helps to ensure that workers are more knowledgeable about workplace hazards and their rights, and contribute to our nation’s productivity.

150

OSHA 10 HOUR CONSTRUCTION/SAFETY & HEALTH COURSE

Upcoming Course Dates: Classes will begin promptly at 7:30 AM each day

PER STUDENT

Philadelphia Dates: January 8-9, 2019 | March 12-13, 2019 | May 7-8, 2019 | July 9-10, 2019 Delaware Dates: April 9-10, 2019 | June 11-12, 2019

400

OSHA 30 HOUR CONSTRUCTION/SAFETY & HEALTH COURSE $ Upcoming Course Dates: Classes will begin promptly at 7:30 AM each day

PER STUDENT

Philadelphia Dates: January 14-17, 2019 | March 25-28, 2019 | May 20-23, 2019 | July 22-25, 2019 Delaware Dates: April 15-18, 2019 | June 17-20, 2019 CHOOSE A COURSE:

NAME(S)

OSHA 10 Hour Construction ($150 per student)

OSHA 30 Hour Construction ($400 per student)

M PA – M January M March M May M July M DE – M April M June

COMPANY/ADDRESS

PHONE NUMBER

METHOD OF PAYMENT: Number of Students: x $Cost= (total) Credit Card Number: Exp Date: Name on Card: Contact Person & Phone Number: Check #: (mailed to and made payable to Med-Tex Services, PO Box 240, Penns Park, PA 18943) You may also fax or email registration form to Mary Cubbage: Fax 215-624-8474 Email: mcubbage@med-texservices.com

ASSOCIATION

NEWS

ANNUAL MEETING RECAP This year, we also acknowledged the changing of GBCA’s Chairman of the Board. GBCA presented Jim Dolente Sr. of Madison Concrete Construction with a plaque in recognition of his service to the organization from 2017-2018. Joseph Clearkin of James J. Cleakin, Inc., is GBCA's new Chairman of the Board. GBCA also honored several individuals throughout the evening: •

David Panichi, TN Ward Company, Distinguished Director Award recipient

•

Supervisory Training Program graduates

•

Pat Pasquariello III, P. Agnes, Inc., GBCA Community Service Award recipient

Several labor leaders were among the evening’s attendees: Bill Sproule, Mike Hand, and Rob Smith of Keystone + Mountain + Lakes Regional Council of Carpenters; Charles Brock of Carpenters JAC; Joe Ashdale & Matt Cortez of DC21; Ryan Boyer & Anthony Moss of Laborers District Council of the Metropolitan of Philadelphia and the Vicinity; and Fred Cosenza of the Philadelphia Building Trades. Several elected and civic officials also came as invited guests: Mayor Jim Kenney, Councilwoman Blondell Reynolds Brown, Councilman Bill Greenlee, Councilman Al Taubenberger, Yeadon Borough Manager and Secretary Tinu Moss, and City of Philadelphia Director of Planning and Development, Anne Fadullon. 22 CONSTRUCTION TODAY

BY THE NUMBERS

From the 2018 GBCA Annual Report

EVENTS

FINANCE

1,988

Registered Event Attendees

194K

18%

Networking Events

In Event Sponsorship Dollars

YOY Increase in Net Assets

Increase in IAP Funds

MARKETING SAFETY

Member companies enrolled in Silica Safety Program

Member Site and OSHA Safety Meetings

500

Bottles of Water Distributed for Rest. Water. Shade.

EDUCATION

$50,199

Awarded for Tuition Reimbursement

26%

Increase in Sponsored CARP Graduates from 2017

2,678

110% 839,189

Event Photos

Increase on LinkedIn Clicks

Social Media Impressions

300%

51%

505+

$5,000

Increase in Social E-Newsletter Over 505 million Media Content Subscriber Growth People Saw or Heard GBCA Advertising on TV, Radio, Print, or Online.

CLC

INDUSTRY

Hours in City Council Meetings

96%

Board Participation in PAC Activities

Networking and Attendees for the Team-Building Hard Hat Tour Events

84,000 lbs (42 Tons) of Fresh Produce Donated to Philabundance

Raised for Charities

5,160 lbs

of Produce Salvaged for Philabundance

MEMBERSHIP

277

Members, 32 New Members

108%

Growth in Membership Dinner attendance from 2016

LABOR

134

Hours in Labor Negotiation Meetings

CBAs Successfully Negotiated

To download your copy of GBCAâ&#x20AC;&#x2122;s annual report, go to gbca.com/2018annualreport or call GBCA offices 23 CONSTRUCTION TODAY

at 215.568.7015 for a printed copy.

SAFETY

FATAL FOUR Construction sites can be a hazardous place, but they can become a safe work environment, if workers are made aware of what to look for and which preventative measures to take in potentially dangerous situations.

rails, and fall protection gear. Not only is it important to have these items regularly inspected, but employees should also be instructed to avoid using any equipment that appears damaged or in poor condition.

OSHA’s Focus Four Hazard campaign, which can also be referred to as the Fatal Four, focuses on the top four fatalities in the construction industry and ways to prevent dangerous or fatal working environments. With a well trained staff, these four hazards will be prevented and your worksites can go from hazardous to safe in several safety practices, which are mostly preventative. GBCA will be sending Toolbox Talks Tip Sheets each week in the News at a Glance e-newsletter, and will also post the tips on the GBCA blog, “Hard Hat Chat.” Below is a brief overview of each of the Fatal Four hazards and some ways to avoid a potential hazard.

If you are using ladders at your site, ensure your safety by using the right ladder for the job and avoid climbing the ladder with tools or other materials in your hands. When working on scaffolding, remember that it should be able to support its own weight and four times the intended load to safely and successfully complete a project. It is important to remember when a guardrail is needed and when fall protection gear is needed, which is whenever working ten or more feet above the ground.

Falls are one of the top causes of deaths in the construction industry. There are several instances where falls can easily be prevented; many of these situations are easily preventable, but seven out of ten citations are related to falls in some way. There are various ways to avoid citations, and more importantly, fatalities in the workplace. Ensure that all gear is inspected regularly such as ladders, scaffolds, guard24 CONSTRUCTION TODAY

Another one of the Focus Four Hazards include struck-by incidents. This category includes workers getting struckby falling objects, flying objects, swing/slipping objects, or objects on ground level. The struck-by hazard ranks number two for construction fatalities, but these can also be prevented. To avoid falling objects it is important for workers to remember that other workers, as well as materials, are moving overhead. Everyone, those elevated and those below, must remain aware of their surroundings. Furthermore, it is imperative to remember to store all objects properly while elevated to prevent them from falling.

ATAL FOU

Most flying objects that hit workers are caused by power tools, which can become airborne if they are not being handled properly. Inspect each tool before use to insure that all guards are in place on the power tool. The best way to avoid swinging/slipping objects is to lift all loads evenly and well-secured. While the load is being lifted, never work or stand under it and be aware of the possibility of the load swinging. Know what is going on above you and below you to avoid potential injuries. The next Focus Four Hazard is electrocution. It takes very little electricity to cause serious harm or even death at a work site. A common household electrical current ranges from fifteen to thirty amps, and it takes less than one hundred milliamps to cause cardiac standstill. The easiest way to prevent electrocution on a construction site is to inspect all equipment before use to ensure it is in the proper state for the safest use. From extension cords to power tools, it is best to inspect these ob-

jects before use to avoid accidents at all cost, especially if these items smoke, smell or feel warm or tingle when in use, they should be taken out of service. It is always best to practice the old adage, “If it doesn’t seem right, it probably isn’t right” and when it comes to electrical objects, this stands true. It is important to check surroundings to assure that you are using electrical objects in a dry space. Wet skin lowers skin resistance and can increase injury if electrocuted. The Last Focus Four Hazard is the caught-in hazards. The caught-in hazards include anytime a worker is caught in or between objects such as cranes and heavy equipment, tools and machinery, and trenches and excavations. To avoid getting caught-in cranes and heavy equipment it is best to avoid standing between a heavy object and an immoveable object, and to avoid working within the swing radius of rotating equipment. Always keep a safe distance from heavy equipment and cranes and always barricade an unsafe area. To avoid getting caught in tools and machinery, never disable guards on

tools and keep hands and clothing away from moving parts. Lastly, to avoid getting caught in a cave-in situation, ensure that all sides are protected to the trench. Never work inside of an excavation that is accumulating water. The Fatal Four Hazard campaign was implemented to decrease workplace injury and fatality. All four of these can best be addressed by preventative measures, especially becoming more aware of work surroundings. A job well done includes a job completed safely, and we know that there is great potential in avoiding these four fatal hazards. Workers that are taught what to look for and what to avoid will be the anchor in achieving safer worksites with fewer injuries and fatalities. The construction industry is continuing to raise the standard of excellence, especially in workplace safety.

Your GBCA Safety Department is taking great strides to make sure your workforce stays safe. We urge you to attend these safety-specific networking events throughout the year: MAY 16 – MAY 17 AGC Fall Protection Training Seminar SEPTEMBER 20 Eggs with OSHA OCTOBER 29 Construction Technology Expo, Safety Panel DECEMBER 10 Eggs with OSHA

ISSUE 1 | 2019 25

EVOLUTION IN HOSPITAL CONSTRUCTION & DESIGN BY AMY NOVAK, PROJECT EXECUTIVE | TORCON

Over the past two decades, there’s been an incredible amount of disruption across the healthcare industry. Consequently, how healthcare facilities are designed, engineered and constructed has rapidly changed to keep pace. According to a 2018 report by McKinsey, key factors driving this are affordability, technology and a focus on consumerism as patients are taking a greater role in their healthcare decisions.

bringing inpatient care closer to our backyards. This past summer, the Children’s Hospital of Philadelphia (CHOP) announced a significant expansion of its main campus, with a new 250,000 square-foot inpatient hospital in King of Prussia. The facility will bring 52 inpatient beds, a 24/7 emergency department and an array of pediatric specialties under one roof, such as orthopaedics, plastic surgery and ear, nose and throat (ENT) services.

Developers, designers and builders have worked together to uniquely transform healthcare delivery by incorporating architectural trends devised to improve the patient experience. There’s a greater emphasis on creating facilities that prioritize comfort, convenience and treatment accessibility for patients and their families.

During my tenure at Torcon, I have had the privilege to work on a number of ground-up construction and renovations projects that are meeting this growing demand for accessibility and efficient care. In December, we began construction of a complete overhaul of an existing 88,000 square-foot office building in Cherry Hill, New Jersey, to make way for a new multi-specialty facility for Cooper Health. When opened, it will offer patients in the South Jersey suburbs a one-stop shop for a variety of medical disciplines within close proximity to their communities.

PRIORITIZING CONVENIENCE These market conditions have led a significant increase in the construction of outpatient medical facilities, bringing quality care close to home while allowing patients to be discharged the same day. According to data from Avanza Healthcare Strategies, from 2000 to 2017, the number of Medicare-certified ambulatory surgical centers (ASCs) nearly doubled from 3,028 to 5,634 locations. And, from 2010 to 2015, the share of outpatient hospital revenue increase from 21 percent to 60 percent. This isn’t a trend only affecting outpatient construction, it’s also 26 CONSTRUCTION TODAY

DRIVING EFFICIENCIES As every healthcare provider tries to grapple with the rising costs of care, there has been an innovative rethinking of how to maximize efficiencies within new construction design. At St. Christopher’s Hospital for Children, we built the 135,000 square-foot critical care tower, along with the 30,000 squarefoot Center for the Urban Child. These cutting-edge facilities were purposefully designed to provide incredible flexibility to

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accommodate diverse medical disciplines and patient needs. For example, depending on their scheduled days, an exam room at the Center for the Urban Child might one day serve as an ENT unit, while the next it accommodates primary care patients. Implementing typical layouts with the same room design in hospitals is beneficial in several ways. To start, by duplicating the physical layout, medical staff needs less orientation and training. This results in a better work flow among employees. In addition to this, it allows for more patients to be seen throughout the duration of the day because it takes advantage of all the rooms that the hospital has to offer — as opposed to allowing rooms go to waste during times when there isn’t peak demand.

sorbing and increased air quality with overhauled HVAC systems. In recent years, we have seen leaps and bounds made in the advancement of hospital construction and design. In addition to the renovations and ground-up construction that make the hospitals better-organized and more welcoming, we are also seeing thoughtful designs that remove stigma from illness – whether it be physical or mental.

DESIGNING COMFORTABLE SPACES Hospitals have also turned their focus to creating a more hotel-like experience for their patients. Instead of double bedrooms, healthcare providers are pushing for more single rooms, offering not only more privacy, but more space for telehealth technologies and comfortable arrangements for loved ones. At the Henry Ford West Bloomfield Hospital in Detroit, patients are welcomed by valets and greeters, meals are available on demand 24/7, and they even offer in-room massages and other spa treatments. According to the New York Times, these enhancements have very practical health benefits, Research shows these amenities can reduce stress and anxiety, while private hospital rooms can cut down on disease transfer. Outside of patient rooms, health systems have created spaces within the hospital designed to feel like a living room within their facilities. The healthcare industry knows that venturing to the hospital is never an easy ride – by implementing a more relaxing environment they hope to create a better stay for patients and their families. In addition, advancements in energy efficiency and green technology have made hospital barriers more sound-ab-

I look forward to seeing how these designs continue to evolve to better accommodate patients and make their experiences at hospitals more peaceful. With these advancements, I believe the future of healthcare will improve for the better for all – providers, patients and families.

ISSUE 1 | 2019 27

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SKANSKA EMBRACES CULTURAL CHANGES FOR IPD SUCCESS BY REBECCA PIZZI, PROJECT EXECUTIVE | SKANSKA USA

“Trust and transparency” can seem a little touchy-feely in the bricks and mortar world of construction. Yet on more and more of today’s job sites, trust, transparency and collaboration are the cornerstones of projects’ delivery approach for success. The method known as IPD, Integrated Project Delivery, is a collaborative approach integrating the owner, construction team and design team to optimize project results, reduce waste and maximize efficiency. IPD’s potential for success is appealing but assembling the right team that can effectively implement IPD isn’t easy. Skanska’s 465,000-square-foot hospital project for Inspira Health in Mullica Hill, NJ, is the firm’s third IPD project and its largest in North America. Skanska is committed to this progressive delivery model because of the wide-ranging benefits it offers – not just for the client, but for the construction industry overall. The Inspira project represents the evolution of the construction industry as the industry explores methods to more reliably deliver projects on time and on budget while utilizing the latest technology. Since many technical elements of a healthcare facility require close alignment, Inspira’s new hospital was a natural candidate for IPD. Operating rooms, sterile environments, labs and pharmacies require coordination from all teams and make this integrated delivery approach a good fit. But the keys to a successful IPD implementation are as intangible as tangible, and a strong IPD team is built on the intangibles of trust and transparency. 30 CONSTRUCTION TODAY

Embracing these aspects of the process requires a change in a culture that is a significant departure from the traditional Design-Bid-Build approach. IPD is built on shared risk and reward, so determining those parameters early in the process is essential for success. The team must develop a plan that is mutually agreeable and beneficial for all parties. At Inspira’s south Jersey hospital, IPD team members Inspira Health, Array Architects, Leach Wallace Associates (Consulting Engineers) and Skanska (inclusive of adjoined trade partners) have signed a multiparty contract – a commitment that requires a significant level of trust that all members will hold up their end of the bargain. The contract sets the stage for a truly collaborative process and members of the team. One of the biggest cultural shifts is that the construction management and design teams no longer stand alone but are part of a multi-disciplinary team structure: Senior Management Team (SMT), Project Management Team (PMT) and Project Implementation Team (PITs). The teams must be nimble in order to quickly resolve questions and issues without negatively affecting schedule and budget, always keeping what’s best for the project at the forefront and the focal point for every decision. This timely decision-making is key to success and ensuring the project is being managed as efficiently and effectively as possible, ultimately saving time and money. Another big difference is that rather than creating the design schedule and the construction schedule separately as in a traditional model, the IPD team col-

lectively develops a schedule based on milestones. These milestones often overlap to make flow from design to construction as smooth and streamlined as possible however, more importantly, it identifies efficiencies early on and focuses the team to only design what is needed to accommodate the work in place schedule. Design and construction execution work hand in hand in lieu of a traditional delivery method hands off which ultimately results in redesign or over design, therefore, creating waste. The numerous options that are available with today’s technology make collaboration much simpler. With software that enables one centralized location to store, track and access project documents, the paper aspects of reporting are eliminated of which offer for a better communication tool amongst stakeholders. In addition, the team has used virtual reality (VR) to take the collaborative work one step further. VR can help users visualize aspects of the project that haven’t been completed. At Inspira, the construction team has used VR to demonstrate various aspects of the project to the hospital’s facilities staff. Using VR the facilities staff can see above the ceiling and visualize how they will access mechanical equipment when the project is completed. This early look “under the hood” lets the facilities staff flag any possible issues before construction and helps the IPD team avoid problems, again saving time and money.

As for the future of IPD, the methodology is beginning to be adopted across the country. All it takes is one experience on an IPD project, for members of the team to begin to understand and recognize all the benefits of working smarter and more effectively. As the construction industry evolves, owners, designers and construction managers will continue to be on the lookout for creative ways to deliver projects to be more predictable as to be on time and on budget. For Skanska, IPD has proven to be a realistic option for future projects. Our team, along with the architect and engineer, is committed to promoting the success of this project delivery method. With the right team, a collaborative culture that is established at the beginning, and team members who respect each other’s professional expertise, the IPD methodology can deliver a positive outcome with tangible benefits for all parties.

As with any new technology or product, adoption can be slow and users can be reluctant to make the change from familiar systems and methods. But because IPD focuses on a collective group that shares a mutual understanding from the beginning, the culture must be established – one encouraging participants to make use of new technologies in order to move the project forward (‘what will deliver the best results for the project’ mindset). If a trade partner is unsure of the tools, training and support can help them understand the benefits and efficiencies. Onboarding with everyone is crucial to ensuring the culture is known and understood on an IPD project and what that means.

ISSUE 1 | 2019 31

BIM: PREPARING FOR TAKEOFF BY MATT DEBASIO, CM-BIM | P. AGNES

For our industry, BIM is no longer the wave of the future- it is the opportunity of the present. As construction firms continue to embrace this disruptive technology to varying degrees, they experience success on a wide spectrum. The term ‘success’ as used here, could be considered direct, tangible benefits to a project- upper management might call this return on investment. While many have first realized the benefits of BIM through coordination of MEP systems in 3D, there are other advantages to be gained that may be somewhat undiscovered. What else could we be doing right now, to increase our ROI from BIM? I believe that one of the oft-theorized but less-realized benefits of BIM, lives within estimating and pre-construction. Some refer to the 5th dimension of BIM; the application of costs to model data and geometry… however before we can apply costs, we must first extract quantities! This is one area where we have an opportunity to move from theoretical to actual ROI- through increased speed, accuracy, and time savings in takeoffs. But in order to maximize the benefits in this area, it is important to develop a framework of best practices for quantity extraction from models- and while every team and estimator is different, here are some ideas for beginning to develop workflows. The universal BIM rule of “garbage in, garbage out” is applicable again here- so preparation is key, in order to get the most from your 3D takeoff efforts. WE’RE BEING AUDITED A quality check or model audit is best conducted prior to making a decision on whether to use your model files for quantity 32 CONSTRUCTION TODAY

takeoff exercises. While many of us may not have the expertise (or time) to perform a truly extensive model audit, some basic things can be verified quickly: • Nomenclature used in model object Types are describing unique elements that are different from the rest, OR use of additional parameters/properties to distinguish (ex: using marks/materials/finish tags) • General geometry aspects, common for all disciplines: reference levels, offsets, and hosts • See that model objects are associated with proper datum/levels • Verify that family objects have the dimensions they say they have • Look at heights of all walls- especially for rated assemblies • Determine if negative spaces are properly modeledstairwells, shafts, elevators, etc. • Check for overlapped elements, and be sure that elements are joined properly • See that MEP systems are connected all the way along their paths Note: the above are based on use of a Revit file, but could be applicable for other design tools as well

HAVE ‘THE TALK’ You’ll want to discuss with the project’s design team, the expectations for release of model files and versions, throughout the pre-con phase. Will they share model files at each ‘milestone’ design issue, or more frequently? Is there opportunity for the contractor to declare what information should be present, and when? Share your intent with designers to use the models for quantity takeoffs, and be clear about what information is important to your team for this purpose. The earlier you have this discussion, the better. While ‘the talk’ could take place after your initial model audit, and you can bring questions to the table based on your audit findings… over time this should be done as early as possible (i.e. before model audits), once you gain the experience of several audits, projects, and BIM discussions to communicate your expectations more clearly, in order to optimize pre-con processes. MODEL-FICATIONS Depending on the results of your audit, if you decide to move forward with takeoffs using your 3D files you may want to consider modifying the model, to allow further ease in taking off certain objects or trades. For example, you can begin by removing any superfluous or unnecessary objects from the model – things that you’re not concerned with taking off at the moment, but can slow down your computer’s performance, or otherwise get in the way of more important elements. You should also consider how the objects in the model might actually be constructed- split up concrete slabs according to how they will be poured, or separate any structural columns that seem to run up through multiple levels. These types of modifications can be done using Revit add-ins such as PCL Parts Lab (free software).

into these groups, to provide useful model data downstream to your operations and field teams. Once you’ve conditioned by separating work packages, it is useful to colorize different groupings for visual impact- once again, similar to the traditional method of marking up 2D sheets in color. Not only does this help with the transition between 2D and 3D workflows, but is also a way of determining which objects have been accounted for in your takeoff, and better for visually communicating scope with different trades or team members. TRUST, BUT VERIFY One of the biggest questions when extracting quantities from 3D models is “how do I know these quantities are correct”? With the above preparations and if done methodically, the quantities you derive from the 3D objects can actually be more accurate than if extracted from 2D sheets- after all, we have reduced the human error in interpreting, hunting, pecking, tracing, and counting from 2D sheets. However it is still critically important to check some of the ‘key quantities’ for consistency against what is shown in the drawings. Some bigger items you might want to verify might include total area of the Floors object category, against the stated overall square footage for your project. Or perhaps the number of Doors in the model versus the number of rooms scheduled. While you’re not seeking exact/identical values in either case, you should be on the lookout for drastic discrepancies- something that might indicate a problem in object categorization, formulas, or your takeoff method. These checks can also reveal incongruencies between the model and the drawings, which might be formally submitted as RFIs.

Have you ever wished that the door or finish schedule included in your drawing set came in Excel format? Or included the actual quantities? You can improve upon the schedules provided on 2D drawing sheets, by making your own in Revit. Try creating a new room or door schedule, and add columns for properties that are more useful for your takeoffs: rooms’ areas and perimeters for instance. Just be sure to change the units so that you can run quick filters, formulas, quantity totals, etc once you export your custom Revit schedules to Excel. CUT, CONDITION, AND COLOR

WITH CONFIDENCE

Making the jump from 2D drawing-based workflows to 3D model quantification may seem like a big difference, however there are some similar things that would be done in either case. On a 2D drawing set, you would want to cut up (break down into more manageable parts) and ‘condition’ (organize) the documented scope into different work packages. In a 3D takeoff workflow, this may be accomplished more quickly and easilysearch or filter and select model objects that belong to particular trades’ bid packages (and be sure to save these groupings for future use!). Further organizing by sub-categories is useful too, but the primary bid packages are most important. This is because the work for some trades may include model objects from several different model categories- so it’s critical to group things according to who will own that scope. If your chosen software allows, further condition your model by adding information back

Your specific approach to 3D takeoffs will need to be crafted based on your own methods, habits, and skill level- and lots practice will be required. These ideas have been put forth with the objective of seizing the opportunity to get more out of your investment in BIM, during the estimating process. And while there is certainly no ‘easy button’ for estimating even with BIM tools at our disposal, the tedious task of project quantification can be transformed using new tools and techniques. Learning to approach takeoffs in 3D with the same attention and care as we would in 2D, can bring tremendous value in the form of time savings, accuracy, and better communication throughout the pre-con process. Hopefully the above preparations and practices will help in building the confidence needed, in your models and your methods, to get the most value from 3D takeoffs.

ISSUE 1 | 2019 33

NACC CASE STUDY: THE CONTRACTOR’S PERSPECTIVE BY AMANDA GIBNEY WEKO, PRINCIPAL | AGW COMMUNICATIONS ON BEHALF OF ADMINISTRATIVE MANAGEMENT SYSTEMS, INC.

ABOUT NACC The North American Contractor Certification Program provides architectural glass and metal contractors with certification recognition through a professionally administered, third-party assessment, as a means of creating a baseline for competency and adherence to industry-accepted guidelines. KNOWLEDGE IS POWER Abiding by the belief that knowledge is power, Kraus-Anderson Construction (KA) established KA University. The professional development program provides employees, clients, architects, and others with technical education and leadership training. KA University is an approved CEU provider of the American Institute of Architects. Mike Spence, AIA, FCSI, of KA provides design and construction teams with in-house technical expertise and insight in the areas of building science and quality. In three decades of professional experience, Spence has worked as an architect, directed specifications writing, and provided construction quality management. His multiple perspectives informed his recent conversations with Administrative Management Services, Inc. about the value of the NACC certification program and how contractors stand to benefit from hiring certified subcontractors. DECISION-MAKING DIFFERENCES “KA looks differently at subcontractor criteria than an architect,” he explains. “As an architect, I was taught to focus on end results

34 CONSTRUCTION TODAY

and not to specify means and methods. As a contractor, it’s all about the means and methods. There is a risk profile difference between the two, but that lends itself well to labor and subcontractor certification programs. A third-party evaluation is a plus.” A subcontractor’s financial strength is paramount to KA’s hiring decisions. A strong safety record comes a close second. NACC certification mandates documentation for both, meaning certified subcontractors are prepared to meet the stringent requirements of a large GC such as KA. Since launching in July 2015, NACC has gained industry acceptance and recognition for raising the bar of quality and professionalism. Yet there are still areas of the country without certified subcontractors. Spence, who expects the program to grow, suggests specifying qualifications and documentation in alignment with NACC certification in cases where specifying a certified contractor is not possible. SPECIFYING CURTAIN WALL To assist the A/E and subcontracting communities, the KA Building Science Group developed the presentation, “Curtain Walls from the Contractor’s Perspective.” The presentation provides design teams with insight and understanding of curtain wall performance requirements and best practices perspective regarding curtain wall specification, detailing, and testing. According to Spence, “By understanding the contractor’s perspective, you will be better prepared to eliminate waste in your design and documentation process by focusing on what’s important for the owner and contractor.”

“What’s attracted KA to NACC is how to evaluate qualified subcontractors. When we work in our home area, we have relationships, but as we reach out to other areas, independent certifications are a tool to evaluate competency. That’s a real strong selling point.” - Michael Spence, AIA, FCSI Kraus-Anderson Construction

MITIGATING RISK The presentation explains how potential risks can be reduced by specifying end results rather than means and methods and suggests architects and engineers, “consider NACC and AGMT criteria as a starting point.” He outlines key factors that should form the basis for qualifying glazing subcontractors: business practices, safety programs, quality programs, administrative procedures, and operational procedures. Not coincidentally, all of these criteria are documented as part of NACC certification. LEVEL OF DETAIL According to Spence, the level of detail encouraged by NACC is an asset to the certified subcontractors and the design and construction community. Since curtain wall manufacturers rarely approve or endorse subcontractors, independent third-party

verification provides a safeguard. From structured quality and safety programs and documented procedures for shop fabrication to field deliveries and on-site applications, the protocols documented during certification keep questions to a minimum and instill confidence in the hiring GC. PREDICTABLE PERFORMANCE Spence says that KA encourages its design community partners to focus on defining performance criteria: how the finished application must perform and not necessarily how to get there. This has been a recurring theme in his education presentations. “The value in NACC certification is that in the procedural guide for NACC are those criteria. Certified contractors provide predictable performance. That’s really important.”

CONSTRUCTION OWNER STRATEGIES UNDER TAX REFORM BY COURTNEY VITALE, CPA, TAX DIRECTOR | CBIZ MHM, LLC

Planning for taxes is a multifaceted approach. Yes you can harness tax opportunities through insight, vision, intrigue, discovery, and strategy: the same as you approach your jobs. For the 2018 filing season, NOW is your opportunity to plan around The Tax Cuts and Jobs Act (TCJA) of 2017 to prepare for longevity within the parameters of the Federal tax code. Dialogue. A key action step right now is dialogue with your tax advisor. Find out what impacts you specifically, and what choices and options you have. Gone are the days of predominantly focusing on just the year at hand. This tax reform gives us a wider lens through which to look at impact. Leverage opportunities to appropriately reduce taxable income. Those with yellow iron know one common means of reducing taxable income is through accelerated tax depreciation. The TCJA significantly expanded the rules for bonus depreciation on qualifying property, increasing it from 50 to 100 percent for the first year placed in service. Notably, this increased limit is now applicable to both new and used equipment you acquire through purchase in eligible transactions. Bonus depreciation can even tip you into a tax loss. If you are active in the business, and have sufficient basis, and you are at risk, then that was often times a good tax answer: an overall strategy for many contractors where ‘cash is king.’ While that same approach may very well end up being the best scenario for you in 2018, now there is more to consider. You may still take every opportunity to reduce taxable income, the question is should you, and if so, what might you be giving up? Is a tax loss the best answer? Maybe. But maybe not! It depends. 36 CONSTRUCTION TODAY

You may have a new Interest Expense Limitation. Strategize around any planned large financing. There is also the new Excess Business Loss limitation and the Qualified Business Income (QBI) deduction to take into account. Here’s a very simple illustration to contrast a $600,000 Federal flow through (loss) in 2017 versus 2018 on a married filing joint (MFJ) return. 2017

2018

Net S Corp or Partnership (loss) ($600,000)

($500,000)

(NOL) Carryover

($100,000)

Presuming active participation, sufficient basis and at-risk basis, the taxpayer could deduct all $600,000 of the loss in 2017, but watch: only $500,000 of the $600,000 loss in 2018. The remaining $100,000 from 2018 carries forward to 2019 as a Net Operating Loss (NOL). That is due to the new Excess Business Loss limitation; net annual limit of $500,000 MFJ. Because this new limitation applies to non C Corp taxpayer business losses, aggregated net losses passed through from various Partnership and S Corporation holdings are included. Any excess loss is carried forward as an NOL. NOLs generated in tax years beginning after 12/31/17 can only be carried forward; no longer are they available to carry back. Plus, when they are carried forward they cannot exceed 80%

of taxable income in that year. Even when a job turns bad, you no longer have the ability to carryback to a year of income and receive a refund of taxes paid for that earlier year. Carrying it forward means you must wait until you file the next year’s return to reap the benefit. If your NOL exceeds 80% of that year’s taxable income you could have a tax obligation even though you still have an NOL to carry forward to yet a future year. How do you accomplish this? Make sure your Tax Advisor knows the road you’re on, your plans for today and the future. Perhaps you’re expecting a very profitable 2019, you may see an NOL as valuable. Lower taxable income in 2018 than what is expected for 2019 allows for you to make lower safe harbor estimated tax payments. One strategy to consider is perhaps not ‘triggering’ a loss through tax depreciation. Perhaps it makes more sense to explore a more intentional and controlled reduction to taxable income. Bonus depreciation is required on eligible property unless you elect out by class life. One option is to elect out of bonus depreciation and instead take Section 179 expense on eligible fixed asset additions. That is more targeted. That may allow you to intentionally have taxable income so that you take advantage of the new Qualified Business Income (QBI) Deduction on qualified income. Maybe that is a better answer for you. Maybe! It depends. You need dialogue. The maximum the QBI deduction can be is 20% of qualified business income. There are potential limitations along the way. If, for example, you have a 2018 S Corporation loss, operational or otherwise, not only are you not eligible for this new deduction in 2018 on that loss, but your missed ‘negative deduction’ impacts other eligible QBI deductions you may have from other entities for 2018. If it is not fully absorbed it negatively impacts next year. Now more than ever, there is a ripple effect into future years. This is an enticing opportunity for someone who likes strategy. What’s the best move? What else does it impact? What are the options and best recommendations?

Serving Employers and Beneﬁt Funds for nearly 50 years

What if you’re told you owe more than anticipated? Have dialogue. What questions can you ask to be part of the strategy? 1. What is something in the new tax reform that is benefitting us in 2018? 2. What did we not get to take advantage of in 2018 and is there any opportunity to further discuss or to plan differently for 2019? 3. What elections or methods of accounting are available to us this year and what would such changes mean? Collaboration in dialogue and strategy is essential. Let your tax advisor use their skill, expertise, and strategy, not only in navigating the tax code, but in knowing you and your Construction business. You deserve new ideas, new perspective, and more strategy. What’s your next move?

(610) 710-4510 swbcounsellors.com 656 East Swedesford Road Suite 330 Wayne, PA ISSUE 1 | 2019 37

TIPS TO DEVELOP YOUR CONSTRUCTION COMPANY’S SUCCESSORS BY MARK A. GUILLAUME, DIRECTOR, AUDIT & ACCOUNTING | KREISCHER MILLER

Many construction companies are privately-owned, and a good deal of their owners are at a point in their lives where they have run the business for a long time and are considering what’s next. Construction companies are not unique in this regard; businesses in virtually every industry are facing this generational shift. Some have transitioned their businesses and moved on to the next stage of their lives, while others are either currently in the process or just starting to think about the next stage. There are many options to transition a business, and determining which one is right for your situation requires diligence. No two construction companies are the same. Some will have higher valuation multiples and more transition options than others due to the nature of the business. For instance, a construction company whose business model includes a high percentage of hard bid work or non-recurring work never knows what next year holds. An external buyer may not assign a high value for this type of company as there is not a consistent income stream to support a higher valuation. That does not mean the business is not valuable, but rather that the future value/earnings are dependent on the management team’s ability to win and perform work at good margins. In this case, the options are more limited and we generally see many of these types of businesses transition to the next generation or to the management team. If your plan is to transfer your company’s ownership to family members or employees within your management team (known as successors), I would encourage you to give yourself and your successors plenty of time so the transition is successful for all parties involved. We generally recommend starting at least five years beforehand. There are financial considerations and/or

38 CONSTRUCTION TODAY

family matters that need to be addressed during this time, but for the purposes of this article, we’ll focus on developing your successors and the company in preparation for the transition. Before you begin the process, determine whether your identified successors have the desire to own and run the business. If they do not, it is better to know that up front than after you have made significant investments in the transition plan. If they do have an interest, you can move on to the planning stage. Think back to the days when you were just starting out in your business. I am sure life was not easy, and you faced stressful times and many difficult decisions. These experiences shaped you and made you a more effective business leader. Similarly, your successors will struggle with their own issues. However, there are some things you can do to help prepare them. To start, consider: •

Your successors’ strengths and weaknesses

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What is important to them, both professionally and personally

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The impact to them as well as the business once you are no longer there on a day-to-day basis

With this assessment, you can make decisions on the next steps. These may include: •

Having successors work in different segments of the company or in the field, so they are more knowledgeable about all parts of the business. Or, there may be a division within the company you can have them oversee to develop their management skills.

•

Offering to pay for additional schooling, such as an MBA program. Nothing can replace on-the-job training, but an MBA or other advanced degree can provide a different perspective and help them become more well-rounded business owners and managers.

•

Identifying key employees within the current team and designing employment packages to keep them engaged and active in the business. These employees can support the successors in making operational and strategic decisions in areas with which they may not be as familiar.

•

Investing in additional employees or outside advisors to support the successor in areas that are not core strengths. This will cost money in the short term, but these additional resources should add value and growth opportunities if designed properly.

After the transition, the successors should continue to develop their skills and look for resources to help them run the company. Some examples include:

•

An advisory board – A board can provide the successor with a platform to discuss the current state of the business and any concerns. It should hold the successor accountable and provide guidance in running the business.

•

Seminars and conferences – There are many seminars and conferences that the successor can attend to hone technical or soft skills. There are many web-based resources, as well. One downside of not physically attending events is the missed networking opportunity, which may be more valuable than the conference itself. Therefore, a combination of web-based and live seminars may be preferred.

•

Peer groups – Meeting with peers in formal learning groups can be a great opportunity to learn from other business owners and share ideas of what works, what doesn’t, and why.

•

Successfully transitioning a business to your successors is not an easy or quick process. But taking time to take stock of your successors’ abilities, develop their skills, and improve the team around them will help ensure your company’s legacy for generations to come.

ISSUE 1 | 2019 39

USING PREMIUM FINANCE TO ADDRESS COMPLEX CONSTRUCTION ISSUES BY JEFF BANASZ, SENIOR VICE PRESIDENT | MARSH

In New York, it’s a new $4 billion bridge over the Hudson River. In Ohio, it’s a $150 million wastewater storage, collection, and treatment tunnel. In California, it’s a $64 billion high speed rail project between San Francisco and Los Angeles and a $2.6 billion football stadium a few miles from downtown Los Angeles, on track to be the most expensive sports venue in US history.

solution that can help project owners avoid some of the pitfalls of traditional construction insurance programs while also freeing up cash flow and capital: premium finance.

Across the country, building activity is soaring to new heights amid a resurgent economy. Mega-projects whose size is measured not in the hundreds of millions but in the billions are reshaping communities from coast to coast. Yet construction can be a risky business, even in the best of times. Accidents strike. Subcontractors default. A major hurricane can wreak havoc with a project’s schedule.

While times have changed, the way project owners are typically required to pay for construction insurance hasn’t. Insurance premium payments on major construction projects are often front-loaded at the start of construction before payments start flowing in. For mega-projects this upfront payment could run into the tens of millions of dollars.

REDUCING WIDE SWINGS IN CASH FLOW

Savvy project owners and contractors dealing with major construction and development projects understand that robust insurance coverage is crucial to protect a project from the twists of fortune that can disrupt the most carefully laid out plans.

Those big premium payments siphon off crucial working capital that could be earning higher returns for owners. The substantial sums project owners and contractors must put up at the start of the projects is money that could be invested, with the potential to earn a healthy rate of return in the market.

As projects grow ever larger, all the risks that come with any construction project are multiplied — as is the amount of money needed to secure adequate insurance coverage. But there’s a

With the help of premium finance, project owners can obtain comprehensive insurance coverage without triggering disruptive cash flow issues. Here’s how it works:

40 CONSTRUCTION TODAY

•

As a lender, a premium finance company pays the insurance premium, including any commissions, on behalf of the project owner, general contractor, or other client.

•

The contractor or project owner agrees to repay the premium finance company according to a customized plan based on their business needs, not those of the insurance company. There is no need to tie up valuable assets as collateral. The insurance policy is the collateral, similar the way in which a car serves as collateral for an auto loan.

•

The premium finance lender should also be able to lock down an attractive, fixed-rated payment plan, with interest rates typically ranging from 3% to 5% that will provide certainty throughout the payment process. The payment plan can be easily structured around the specific cash flow needs or seasonality of a project.

CUSTOMIZED PAYMENTS

established lending sources. In addition, the project owner or contractor is not required to pledge additional, valuable collateral in order to obtain a premium finance deal. Instead, the unearned premium serves as collateral for the loan. In this way, premium finance serves as a low-cost alternative that can enhance the organization’s borrowing capacity without tying up existing credit facilities or sources of funding. There is generally no need for a Uniform Commercial Code (UCC) filing, either. While premium finance deals do not tend to get a lot of attention, a growing number of sophisticated project owners are using them to free the need for big upfront insurance premium payments, preserve valuable capital, and maintain the strength of their balance sheets.

Jeff Banasz is a Senior Vice President within the US Construction Practice of Marsh, a global leader in insurance broking and innovative risk management solutions. He is based in Philadelphia.

Two words spell the difference between a relatively smooth construction process and a really bumpy one: cash flow. On a big construction project, the contractor or project owner is often required to pay much of the insurance premium upfront, with another large payment or two later. A big upfront payment is obviously attractive to an insurer looking to minimize risks to its own bottom line, but it comes at a point on a new project when cash is generally limited, before payments come in for work done. But that is typical of construction insurance, with little or no coordination between when premium payments are due and a project’s rhythm of work done and payments arriving. By contrast, premium finance companies recognize that construction projects typically are staged in multiple phases in which start and end dates can easily shift. Working with a premium finance lender, a project owner or general contractor can match its premium finance payments with revenue coming in to ensure that cash flow remains smooth from start to finish. Options include little or no upfront payment and a monthly and/or quarterly repayment schedule for as many as 36 months.

FREEING UP CAPITAL AND PRESERVING BORROWING CAPACITY Insurance premiums on major construction projects can involve upfront insurance payments in the tens of millions of dollars. Once project owners make those premium payments, this money stops working for them and instead goes to work for the insurance company. With premium finance, project owners can hang onto this significant sum, and benefit from its use. That money, invested in the market, has the potential to earn significantly more than the interest paid on the premium finance loan, or it can be held back for other, project-related uses. Either way, the project owner or contractor retains the benefit of that working capital. Premium finance also offers another big benefit: an unencumbered balance sheet. By working with a premium finance company, a project owner does not have to sacrifice overall borrowing capacity by drawing upon existing bank credit lines or other,

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Tri-State Construction, Inc.

ACTIVE Antoine Johnson LLC Rycon Construction, Inc.

Unique Scaffolding Systems LLC

AFFILIATE Bristol Industrial Corp Employing Bricklayers Association

Bucks Concrete Services, Inc.

Hilti, Inc.

Premier Window Cleaning LLC

Norris Sales Company

R & R Ceilings, Inc.

Oak Ridge Surety Agency Inc.

Simpson & Brown

Sunbelt Rentals

REFERRAL DIRECTORY

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GENERAL CONTRACTORS

Laborersâ&#x20AC;&#x2122; District Council See our ad on page 41.

James J. Clearkin, Inc. See our ad on page 03.

BUILDING MATERIALS

LF Driscoll See our ad on the inside front cover.

Architectural Glass Institute See our ad on page 27.

Turner Construction Company See our ad on page 07.

Concrete Cutting Systems See our ad on page 29.

LEGAL

Fizzano Bros. Concrete Products See our ad on page 45.

Cohen Seglias See our ad on page 45.

James Floor Covering, Inc. See our ad on page 39.

Susanin Widman & Brennan, PC See our ad on page 37.

The Silvi Group Companies See our ad on page 35.

SAFETY CONSULTANTS

Tague Lumber See our ad on the back cover.

HazTek Inc. See our ads on page 43.

EDUCATION

Med-Tex Services, Inc. See our ad on page 20-21.

ACE Mentor Program See our ad on page 28. Villanova University See our ad on page 42.

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