TODAY
ISSUE 2 | 2015
CONSTRUCTION PUBLISHED BY THE GENERAL BUILDING CONTRACTORS ASSOCIATION
The Future of the Construction Industry: Building the Leaders of the Next Generation
ISSUE 2 | 2015 1
also significant work to be done in order to bridge a pronounced gap between the well-established incumbents and the up and comers. To this end, General Building Contractors Association (GBCA) has been working diligently to spearhead various programs and initiatives designed to address this critical issue, some described herein. But success ultimately depends on participation and collaboration among the construction community. Our future as a strong, united, thriving industry depends on it. Regardless of your career stage, start by honestly evaluating your skills and knowledge, and challenge yourself to identify areas where you might need — or want — to learn more. Perhaps it’s in the realm of new technology, or maybe it’s getting up to speed on worldwide megatrends that will soon hit home. The important thing is that you not stand still as the world evolves around you.
NOTES FROM THE PUBLISHER This time of year is always dominated by the back-to-school season. And while, for many, the days of textbooks and tests are long gone, there’s no better time to stop and think about ongoing education and professional development. Our world and our industry are changing faster than ever before, and construction professionals — young and old — must commit to learning as a lifelong endeavor to stay at the top of their game. Beyond its importance for success at individual and organizational levels, developing talent that will steward the industry into the future is an imperative that we all have a stake in. In this issue of Construction Today, we focus on building the leaders of the next generation. There are many bright spots to highlight in this regard, but there is
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At the same time, don’t only focus on what you can improve upon. Also consider what you can contribute to the learning ecology. What can you share and teach others, whether inside or outside of your organization? How can you help them develop professionally? And how can they help you in turn? This doesn’t mean giving away trade secrets or proprietary information. Rather, the exchange represents an ongoing commitment to uphold the standard of building excellence by being the best-trained, highly skilled and most-trusted contractors in the region. I encourage you to take an active role in the Association’s education and career development programs, not only for your own benefit, but for the good of our industry. Excellence is building. Lauren Tosti Director of Marketing & Communications General Building Contractors Association
CONSTRUCTION
TODAY PUBLISHER/EDITOR Lauren Tosti ADVERTISING/SALES Lauren Tosti
CONTRIBUTING WRITERS Donald Ashton / Benjamin Connors / Dexter Hendrix / Jim Hiles / Gersil N. Kay / Angela Louro / Robert Nieradka / Carrie Rathmann / Lauren Tosti DESIGN Vault Communications ACCOUNTING Michelle Versace EDITORIAL OFFICE General Building Contractors Assn., Inc. 36 South 18th Street Philadelphia, PA 19103 P: 215-568-7015 F: 215-568-3115 ConstructionTODAY PRINTING A-Lex Print & Promotion 1670 South Hanover Street Pottstown PA 19465 484.988.1156 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
ISSUE 2 | 2015 3
ISSUE 2 | 2015
CONTENT 18
ON THE COVER 18 THE FUTURE OF THE CONSTRUCTION INDUSTRY: BUILDING THE LEADERS OF THE NEXT GENERATION FEATURES 8 CONTRACTOR’S CORNER Featuring Thomas J. Marron, Tower Maintenance Service Company
12 THE TURNER SCHOOL OF CONSTRUCTION MANAGEMENT: BUILDING THE FUTURE A look at community-based learning programs
16
16 HABITAT FOR HUMANITY PHILADELPHIA TO BUILD THE HOPE VILLAGE AFFORDABLE HOUSING DEVELOPMENT Dale Corporation steps up 28 SAVE TIME, SAVE MONEY AND WIN NEW BIDS Cost-effective mobile applications for contractors
32 IOT AND OTHER ALPHABETICAL COMBINATIONS Insights on the Internet of Things and more
36 CREATING A CULTURE OF INCLUSION It’s more than fair and equitable, it’s economically beneficial
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30
36
EDUCATION AND PROFESIONAL DEVELOPMENT 38 TAKE YOUR CAREER TO THE NEXT LEVEL E ducation and professional development programs offered through GBCA
48 LEADING STRONG TEAMS M embers can still register for this educational program on September 29, 2015
SAFETY FIRST
42 DOCUMENT MANAGEMENT/ ADVANCED SCANNING The basics of document management solutions
47 VOLUNTEER WITH THE ACE MENTOR PROGRAM A CE needs the support of the contractor and sub-contractor community
50 MYTHS AND FACTS ABOUT SOCIAL SECURITY F inancial perspectives on retirement
44
MEMBERSHIP UPDATES 10 FEATURE PHOTOS A snapshot of the CLC Phillies Outing, Margarita Mixer, and Annual Golf Outing
23 BECOME A FUTURE LEADER How you can get involved with the Construction Leadership Council
34 AN INTRODUCTION TO GBCA’S NEW MEMBERSHIP DEVELOPMENT & SERVICES MANAGER, ANNE LIBERTO
24 OSHA SUBPART AA CONFINED SPACES IN CONSTRUCTION What you need to know about the newly released standard
LEGISLATIVE CORNER 41 THE GBCA PAC & AGC PAC NEED YOU H ow you can get involved 44 PHILADELPHIA’S NEXT MAYOR A Q&A with candidate Jim Kenney
on critical issues facing the industry
CONSTRUCTION NOTES 30 FIVE TIPS FOR GENERAL CONTRACTORS TO MAKE THEIR SITES SAFER AND MORE EFFICIENT How to avoid major headaches and potentially save lives
39 INTRODUCING THE AGC ALTERNATIVE A private insurance exchange that
can help build a better employment benefits package
IN EVERY ISSUE 43 EVENTS CALENDAR 51 REFERRAL DIRECTORY
ISSUE 2 | 2015 5
CONTRIBUTORS
DONALD ASHTON
BENJAMIN CONNORS
DEXTER HENDRIX
Director, Safety Services, GBCA
Co-Director, GBCA
Regional Community Affairs Director, Turner Construction
JIM HILES
GERSIL N. KAY
ANGELA LOURO
Partner, Cantor Fitzgerald
IESNA, AIA/HRC, Conservation Lighting International Ltd., and Building Conservation International
Manager, Education & Professional Development, GBCA
ROBERT NIERADKA
CARRIE RATHMANN
LAUREN TOSTI
President, Excel Document Solutions
Director of Strategic Partnerships, Habitat for Humanity
Director of Marketing & Communications, GBCA
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Your business is only as strong as the insurance policies supporting it. At The Graham Company, we believe every business should be supported by strong insurance policies. That’s why we labor over each word to make sure your policies are rock solid, and to make sure they’re uniquely tailored to meet your needs. We know solid insurance coverage goes beyond the words on a page. So we’re there whenever you need us with experienced teams available 365 days a year. Our mission isn’t just to keep you covered, it’s to keep your company growing, and to keep your employees safe. At The Graham Company, we put words into action, because we believe actions matter.
215-567-6300 www.grahamco.com ISSUE 2 | 2015 7
CONTRACTOR’S
CORNER NAME Thomas J. Marron
TITLE President
AGE 73
COMPANY, CITY Tower Maintenance Service Company, Huntingdon Valley, PA
YEARS IN FIELD 50
EDUCATION Cardinal Dougherty, La Salle College, Penn State, Temple (nights)
BIRTHPLACE Philadelphia, PA
CITY OF RESIDENCE Huntingdon Valley, PA
“ I liked the constant challenges, keeping
FAMILY
promises and
Gail (wife), Donna Marie (daughter), Ashley & Cara (grand-daughters)
forming friendships
FIRST JOB Wister Heberton Lumber Company (Rittenhouse & Paulaski)
RANDOM FACT ABOUT YOURSELF Love for classic cars. What will I do when I grow up?
WHAT IS YOUR BUSINESS MOTTO? “Do it right the first time.”
WHEN DID YOU FIRST BECOME INTERESTED IN YOUR CAREER PATH? I liked the constant challenges, keeping promises and forming friendships along the way.
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along the way.
”
GBCA would like to recognize Tom Marron for his outstanding service in the construction industry over the past 50 years. Tom started his career as a carpenter’s apprentice in 1965 working on cooling towers and this October will receive his 50 year pin as a member of the Metropolitan Regional Council of Carpenters!
WHAT IS THE MOST REWARDING PART OF YOUR JOB?
WHAT AWARD OR HONOR ARE YOU MOST PROUD OF?
Completing a job and doing it well. Least rewarding? Red tape.
My daughter’s accomplishments.
WHAT IS YOUR BIGGEST DAILY CHALLENGE? Weather.
HOW DO YOU INSPIRE YOUR EMPLOYEES? Lead by example.
HOW DO YOU KEEP YOUR COMPETITIVE EDGE IN TODAY’S MARKET? Luck.
WHAT GOAL ARE YOU CURRENTLY STRIVING TO ACHIEVE? Adjusting to current conditions in the cooling tower industry.
WHAT PROJECT ARE YOU CURRENTLY WORKING ON? Veolia at Trenton Justice Center.
DO YOU HAVE A LIFE MOTTO? IF SO, WHAT IS IT? Enjoy life and the people I meet.
WHAT’S THE MOST IMPORTANT LESSON YOU’VE LEARNED IN LIFE?
WHAT WORD OR PHRASE BEST DESCRIBES YOU? Endurance.
WHAT WOULD BE YOUR FIRST CHOICE FOR A NEW CAREER? Heart surgeon.
FAVORITE WAY TO SPEND YOUR FREE TIME? Playing with my toys (e.g. cars).
FAVORITE VACATION SPOT? Virgin Islands (Bon-Aire).
FAVORITE SPORTS TEAM? Eagles, NASCAR.
BOOK THAT HAS INSPIRED YOU MOST? “Profiles in Courage” by JFK.
FAVORITE MOVIE OR TV SHOW? Anything with cars, hotrods, classics & old trucks.
FAVORITE RESTAURANT? Varies.
The golden rule.
WHAT KIND OF CAR DO YOU DRIVE?
WHAT IS YOUR BIGGEST REGRET (PROFESSIONAL OR PERSONAL)?
Dodge Durango, “81” Imperial, “35” Dodge, “40” Ford (since 1958).
Not going further in my education.
ISSUE 2 | 2015 9
10 CONSTRUCTION TODAY
MARGARITA MIXER
CLC PHILLIES OUTING
GOLF OUTING We had a great time at our annual golf outing on June 1st, despite the rainy weather! Golfers were able to build new relationships, catch up with old friends, and have an all-around great day at the Whitemarsh Valley Country Club. Check out GBCA’s Facebook page for all of the photos snapped throughout the day! A special congratulations to the top golfers from our 2015 Annual Golf Outing! 1st Place-30 Anthony Diangelus, Tony Diangelus, Dominic Diangelus, Krando Metal (Hole 10B) 2nd Place-30 A.T. Chadwick (Hole 1A) 3rd Place-31 Greg Lepore, John Gamber, Jules Tarsi, Anthony Lepore (Hole 7A)
ISSUE 2 | 2015 11
THE TURNER SCHOOL OF CONSTRUCTION MANAGEMENT
BUILDING THE FUTURE
$1 Billion in contracts awarded by turner to MWBE firms across the U.S. for the last 10 consecutive years!
by Dexter Hendrix, Regional Community Affairs Director, Turner Construction Turner Construction Company has long recognized that it builds more than skylines: it builds communities and the company’s approach to community partnership and educational outreach is rooted in the belief that service is an essential part of leadership, and of good corporate citizenship. The company participates in and sponsors a wide range of activities and initiatives which support youth education, health and welfare, military service members and improving the viability of local businesses. Turner’s culture of giving back to the community is shared by all the firm’s employees. Every Turner office has at least one person who is responsible for organizing and coordinating community service activities. In addition, all employees are measured and recognized for their participation in community activities. This is an important part of their personal and professional development at Turner. 12 CONSTRUCTION TODAY
“Turner is committed to supporting communities where we do business,” said Peter Davoren, President and CEO of Turner Construction Company, reflecting on the importance of community engagement and local partnerships. “It is rewardingto build a hospital or a school. It is even more rewarding to build these important community resources with people from the community.” In 1968, Turner’s Chairman and Chief Executive Officer, Howard Turner, formally launched a national Community Affairs program to direct and manage the various efforts in which Turner was engaged to make a positive impact on communities where the company works. From the start, education-related programs and activities have played a significant role in Turner’s community outreach. The educational initiatives Turner has developed and supported
include Adopt-A-School, the ACE Mentor Program, and internships and scholarships. Turner’s longest-running community-based program is the Turner School of Construction Management, established in 1969 in Cleveland, Ohio. The original purpose of the Turner School of Construction Management was to provide a level playing field for all companies, particularly minority and women- owned firms. “An important role we play is to increase the visibility of, improve the economic viability of, and expand opportunities for local minority, women, and small-business enterprises through the projects we build,” added Davoren, adding that beyond these objectives, the Turner School of Construction Management has also become a successful tool for Turner to develop strategic business relationships with growing local firms.
The Turner School of Construction Management is a free learning program offered through each of Turner’s offices. It has been held in more than 70 cities across the country. It provides contractors with the tools necessary to pursue work in both the private and public sectors, helps refine their managerial skills and prepares them to compete for progressively-larger contracts such as those on Turner projects, and creates opportunities for participants to network with peers, instructors, and other members of the industry. Typically, classes are held one or two evenings per week and the program lasts from six to ten weeks, covering topics such as developing a business plan, financial planning, estimating, construction law, LEED practices, bonding, and insurance. Owners of many small subcontracting firms often begin their careers as laborers on construction projects. They learn their craft and then break out on their own to launch a small business. The Turner School of Construction Management is a powerful resource for these highly skilled and motivated individuals to build their businesses. As Victoria Gordon, President of Island Construction & Development, Inc. said, “The curriculum and instructors helped me put the necessary issues relating to growing my business in perspective.” Turner’s commitment to the program is not limited to just a few individuals within the company. More than 1,200 Turner employees, representing every department and office, have served as volunteers to teach courses in the program. Through the classroom experience, Turner forges and maximizes potential business relationships with program participants. To further strengthen Turner’s connection with the community, the company often partners with clients, leading educational institutions, and government agencies to sponsor the programs. For instance, Turner, together with both the City of Philadelphia’s Office of Economic Opportunity and the Enterprise Center, held a program for 72 students in 2014-2015. “The Turner School of Construction Management has helped to increase the capacity of small businesses in the construction industry. Even more importantly, Turner has provided contract opportunities for small businesses to ensure success,” says Angela Dowd-Burton, Executive Director of the Office of Economic Opportunity.
The Turner School of Construction Management program has had a significant positive impact on the graduates and on Turner. Since its launch in 1969, more than 47,000 small business owners representing more than 35,000 firms have graduated from program. They have been crucial in helping Turner achieve success in awarding over 67,000 contracts with a value of $24.1 billion to minority- and women-owned business enterprises (M/WBEs); 2014 marked the tenth consecutive year that Turner has awarded more than one billion dollars of contracts to M/WBE firms. These training programs serve as important networking opportunities. Barnett Carroll, President and CEO of Aegis Mechanical Corporation, a Baltimore-based DisabledVeteran owned MBE mechanical contractor, commenting on the benefit of building a strong relationship with Turner, said, “In an industry that at times is really driven by relationships and past performance, a substantive and deeply rooted relationship with Turner Construction has proved to be invaluable to my firm. Their consistent ability to garner high profile projects coupled with their commitment to diversity provide an excellent path to both growth and sustainability for reliable project partners.” In turn, Turner’s relationship with Barnett Carroll has helped the company build the strong relationships it has today with the City of Baltimore. The benefits of the Turner School of Construction Management program extend beyond the participants to the entire community by improving the strength and viability of the participating small businesses and providing Turner and other construction management firms with a larger pool of qualified subcontractor partners, which is important for the success of the construction industry. It also helps Turner achieve its own annual goals for partnering with these enterprises on construction, subcontracting, and prime contracting projects; in joint venture and association relationships; and for procuring goods and services. Turner has entered into joint venture relationships with more than 300 graduates of the Turner School of Construction Management on major projects around the country. Some of the notable projects include the Rock and Roll Hall of Fame and Museum in Cleveland, Ohio; Invesco Field at Mile High, Denver, Colorado; Cook County Hospital in Chicago, Illinois; the US Treasury Building in Washington, D.C., and Charles Drew Medical Center in Los Angeles, California.
Turner recently completed the 220,000square-foot office renovation for Exelon Corporation in Chicago, Illinois. Turner accomplished an M/WBE utilization of 44% on this project, which received the highest environmental rating from the U.S. Green Building Council. Among the measures taken to develop functional and effective space for Exelon’s employees with minimal environmental impact was the use of low-emitting materials, paints, carpeting, furniture, and finishes and the installation of high-density air filters. Among the firms Turner worked with to complete this environmentallysustainable project were Turner School graduates McKinney & Sons Painting/Decorating and Pinto Construction Group. Turner also recently managed the construction of the $107 million Indiana University Simon Cancer Center for Clarian Health in Indianapolis, Indiana, for which contracts totaling $27.8 million (or 27.3%) were awarded to minority- and women-owned business enterprises. Commenting on Turner’s performance, Renee Smith, Project Architect for Clarian Health said, “Turner has taken a leadership role in M/WBE utilization. Through strategic bid packaging and candid communications with the entire contracting community, Turner not only met our spending goals for the IU Simon Cancer Center, they exceeded them. We appreciate their shared commitment to the community and were proud to be a sponsor of their annual Turner School of Construction Management training program.”
YEAR
MWBE VOLUME
2003
835,887,561
2004
889,915,038
2005
1,057,604,864
2006
1,056,144,418
2007
1,331,463,434
2008
1,463,289,642
2009
1,085,745,633
2010
1,014,994,136
2011
1,156,777,721
2012
1,166,557,883
2013
1,020,987,011
2014
1,366,120,201
The table above shows the recent milestones of the Turner School of Construction Management program and Turner’s achievement in working with many successful M/WBE firms.
ISSUE 2 | 2015 13
Over the years, Turner has received more than 100 awards for its community affairs programs. In 2006, Al Barber, president of the National Association of Minority Contractors, presented Turner with the organization’s first-ever Charter Member Award. In presenting the award, Barber said, “Not only was Turner one of our first members, they have made improvements for diversity on project sites across America. They are diligent to include minority subcontractors on their projects.” Turner was also honored with the 2007 Corporate Leadership Award by the National Minority Supplier Development Council for its significant support of minority business development. Turner received this distinction for minority business enterprise utilization and for its Turner School of Construction Management program. Through the establishment of joint venture partnerships and the utilization of suppliers and prime contractors in the M/WBE communities, Turner continues to fulfill its commitment to provide opportunities for minority- and women-owned business contractors, helping the communities in which we work continue to grow. “We are thrilled to have this record of accomplishment and that we are able to provide so many opportunities to minority and women business contractor communities around the country,” added Davoren. Turner remains closely tied to its founding values. The emphasis on teamwork, quality, integrity, service, and concern for both the individual and the community continues to be focuses of the company. This has served the company well in the past, continues to guide Turner today, and will do so well into the future. About Turner Construction Company Turner is a North America-based, international construction services company. Founded in 1902, Turner first made its mark on the industry pioneering the use of steel-reinforced concrete for general building, which enabled the company to deliver safer, stronger, and more efficient buildings to clients. The company continues to embrace emerging technologies and offers an increasingly diverse set of services. With an annual construction volume of $10 billion, Turner is the largest builder in the United States, ranking first in the major market segments of the building construction field, including healthcare, education, sports, commercial, and green building. The firm is a subsidiary of HOCHTIEF, one of the world’s
14 CONSTRUCTION TODAY
leading international construction service providers. For more information please visit www.turnerconstruction.com. About HOCHTIEF HOCHTIEF is one of the most international construction groups worldwide. The company delivers complex infrastructure projects, in some cases on the basis of concession models. The Group operates in the transportation infrastructure, energy infrastructure, and social/urban infrastructure segments as well as in the contract mining business. With about 53,000 employees and a sales volume of more than EUR 22 billion in FY 2014, HOCHTIEF is represented in all the world’s major markets. With its subsidiary Leighton, the Group is market leader in Australia. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner and, with Group company Flatiron, ranks among the most important players in the field of transportation infrastructure construction. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006. Further information is available at www.hochtief.de/press. n
Turner School of Construction Management classes are held one to two evenings per week and the program lasts from 6 to 10 weeks. Many curricula includes the following: • Green Building • BIM (Building Information Modeling) • Refinining You Business Plan • Effective Marketing Strategies • Managing Stress for Building Success • Scheduling Concepts and Applications • Safety – The Bottom Line • Construction Law • Ethics • Estimating: The True Value • Risk Managemnet • Pre-Constructions: Important Perspectives • Strategies of Financial Management • Daily Operations • Reading Blueprints and Specifications • How to Win Bids, Perfom and Get Paid
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GBCA Member
DALE CORPORATION STEPS UP TO ASSIST HABITAT FOR HUMANITY PHILADELPHIA by Carrie Rathmann, Director of Strategic Partnerships, Habitat for Humanity Philadelphia’s construction boom is keeping GBCA members busy these days — it’s hard to remember a time when the city core has had so many cranes dotting its skyline. But even amid this building frenzy, some GBCA members are still carving out time and resources to give back to Philadelphia’s less stable neighborhoods — traditionally populated by the city’s lower income residents.
(participants needed to stay well-fed and hydrated in the August heat) and DALE Corporation and Local 1073 provided the skilled labor to frame two of the five homes. Additional assistance on the construction site came from local volunteers and the families who are matched to the homes, who maximized team efficiency by organizing materials and hauling lumber.
From August 13 to 15, DALE Corporation and members of the United Brotherhood of Carpenters Local 1073 were out in force to help Habitat for Humanity Philadelphia build Hope Village, a five-home affordable housing development in the Sharswood neighborhood of North Philadelphia. DALE Corporation and Local 1073 each sent several carpenters out to raise the panelized house frames on the 1900 block of Turner Street, helping to ensure that the properties will be ready for low-income families to begin purchasing by the December holidays.
This year’s support was especially appreciated given the city’s current construction renaissance and the number of projects most companies have on deck. “DALE Corp was proud to participate in the Builders Challenge again this year with Habitat for Humanity. Every family deserves a quality, affordable home and we are grateful for the opportunity to support this effort,” said Bill Van Ness, President of DALE Corporation.
This is the second year both groups contributed their time and talents to Habitat Philadelphia’s affordable housing developments. Habitat provided all the materials, heavy equipment, and hospitality support 16 CONSTRUCTION TODAY
Traditionally, many of the volunteers who sign up to build with Habitat have little or no construction experience — meaning that Habitat frames and builds homes under the leadership of its own construction staff. But this is a long process that takes a great deal of human resources. Getting the buy-in and participation of Philadelphia’s building
industry helps Habitat increase production of affordable units and better meet the city’s need for safe and affordable housing — in fact, it’s essential to Habitat’s ability to scale up. “I’m always so amazed to see what can be accomplished when we can leverage the time and skill of the construction industry with resources from corporate groups and communities of faith,” explains Frank Monaghan, Habitat Philadelphia’s executive director. “Could you imagine what we could accomplish if every construction company in the city donated just one day of service? We could eradicate poverty housing.” And the fact is that there is an exceptional amount of poverty housing in Philadelphia, where one in four households cannot afford a safe, comfortable place to live, and is forced to choose between housing and other essentials like food and medicine. For low-income families who are accepted to Habitat’s homeownership program, an affordable home can be a powerful pathway out of poverty. But the program is a hand up, not a hand-out. Partner families must have incomes and the ability to pay a mortgage. And they are required to work 350 hours of “sweat equity,” helping on Habitat’s construction sites and attending homebuyer education workshops. In turn, they get to purchase new, energy-efficient homes with a 30-year, zero-interest mortgage and no down payment. To keep our homes affordable for families who are making 30 to 60% of the Philadelphia-area median income, Habitat relies on the engagement of the trades and the construction community whenever possible. Contributions of expert labor — like those provided by DALE and the Carpenters’ Union — help Habitat redirect precious financial resources and shaves several months off of the construction schedule. Other essential support for the Hope Village project is being provided by an anonymous donor in honor of Pope Francis’ visit, and through a challenge grant of $10,000 from St. John’s Presbyterian Church, which will be awarded if Habitat completes one of the homes in 30 days. Besides providing materials and labor at Hope Village, there are other ways for companies to get involved at Habitat Philadelphia. Habitat recently opened a ReStore at 2318 Washington Avenue, in South Philly. The ReStore is a home improvement retail outlet that accepts donations of new and gently-used furniture, construction materials and supplies, home goods and appliances for resale to the public. One hundred percent of profits help Habitat build and repair more homes locally. Material contributions can be written off and the ReStore provides quick and free donation pickups for the donating company or individual. Habitat also invites members of the construction industry to join committees or consider Board membership. If you or your company are interested in getting involved you can contact Carrie Rathmann, Director of Strategic Partnerships, at 215-765-6000 x28 or carrier@habitatphiladelphia.org. Habitat offers a full menu of benefits for partnership ranging from marketing to tax credits. For more information, please visit Habitat’s website at www.habitatphiladelphia.org. n ISSUE 2 | 2015 17
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THE FUTURE OF THE CONSTRUCTION INDUSTRY: BUILDING THE LEADERS OF THE NEXT GENERATION by Lauren Tosti, Director of Marketing & Communications By many measures, the future looks bright for the construction industry. The crippling economic recession has come and gone, and demand for new projects has spending surging. In fact, in July the Department of Commerce reported that U.S. construction spending rose to a six-and-a-half year high just two months earlier. At the same time, analysis by the Associated General Contractors of America (AGC) revealed that the rate of construction employment in July was the highest it has been since February 2009. It seems as though the industry is looking forward and breathing a collective sigh of relief. However, one fundamental, existential concern continues to become ever more pressing: who will be leading the charge in the years ahead? The hardships born of the recession effectively flushed talent out of the industry and forced many business owners to close their doors for good. Just consider that today the industry employs almost one-anda-half million less people than it did in 2007. Now, as many construction veterans face imminent retirement along with their Baby Boomer contemporaries, we will soon say goodbye to leaders who grew up in the trades, came up through the ranks and patiently made names for themselves by dedicating decades to building their careers. “If I say I wasn’t nervous about the next generation [of leaders], I would be lying,” said Sean Healy, Vice President at Healy Long & Jevin Concrete Construction and Chair of the Construction Leadership Council (CLC) at the General Building Contractors Association (GBCA), a group established specifically to cultivate the next generation of leaders in the construction industry. “The senior leadership who built businesses from the ground up and whom have been successful at all levels in our industry are starting to retire or take less active roles and there is a gap that needs to be filled.” This gap is a concern echoed across the industry, which stems in part from the divide among the “old school” and “new school,” according to Emily Bittenbender, Chairman of the Board at GBCA and founder and managing partner of Bittenbender Construction, LP. “The old school generation typically kept everything very close to the vest,” she said. “They were true builders — people who learned through the trades or from generations of experience passed down through family businesses, and who followed a straight line path from labor to superintendent to higher management positions. Now, we are evolving out of that hardcore general contractor world into a more professional world of construction management that requires a greater emphasis on broader, continuous education.”
Bridging the Gap As evidenced by varied efforts from associations to educational institutions to individual organizations, there is not one single solution that will close this divide and ensure the rising generation of leaders is prepared to take the helm. Formal education undoubtedly plays a key role but there is a chasm here, too, that must be addressed. The AGC acknowledges that “many firms report having a hard time finding enough skilled workers to fill key positions” citing “the lack of a sufficient number of secondary-school career and technical education training programs across the country.” As such, its Workforce Development Plan, introduced in 2014, identifies “an array of measures that federal, state and local officials should adopt to expand secondary-school career and technical education and post-secondary training opportunities so more people can enter into a growing number of high-paying construction jobs.” Whether for high school graduates or professionals already immersed in the industry, ensuring that well-crafted, robust educational programs are available is fundamentally important. By the same token, so is making sure that those who are interested are able to take advantage of these opportunities. In the greater Philadelphia area, the GBCA is helping to make this a reality by supporting professional and continuing studies through its sponsored education courses. Leveraging partnerships with nine institutions, from the Carpenters Apprentice School of Philadelphia & Vicinity to Drexel University, the Association handpicks and customizes courses to offer everyone from entry-level employees to executives learning opportunities that further their capabilities and their careers. It also offers tuition reimbursement of up to $2,000 per semester for employees of member organizations as part of its Industry Advancement Program. Over the past 50 years, thousands of individuals have participated in GBCA-sponsored courses. The concept of access is important well beyond formal education. In fact, progress and ultimately success in bridging the leadership gap relies on it. Access to traditional (and non-traditional) mentors. Access to hands-on learning. Access to peers to collaborate and network. It all comes down to breaking down silos and improving communication to facilitate learning in its many forms.
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Mentoring Up & Down the Ranks Bittenbender stresses the need for seasoned pros to mentor rising leaders. While it seems to happen naturally in multi-generational family environments, she says, it is not readily apparent that the same level of sharing exists on a wider scale. A firm believer that a team that shares together and works together, wins together, the construction executive breaks the mold by taking every effort to embrace transparency throughout her company. From open business books that enable employees to learn about how the organization runs, to an open-air environment without any offices, Bittenbender says she and her team members communicate, and learn from one another, virtually all day every day and that they are each better professionals for it. “We’re going to have issues unless people are mentored by our ‘old school’ experts and taught the basic fundamentals,” she added. Despite all of the ongoing advances in technology and the accelerating rate of change, which is hardly unique to construction but prevalent across industries and markets worldwide, the fundamentals cannot be overlooked. This includes the fundamentals of business — strategy, project planning, budgeting, etc. — and at an even more basic level, the nuts and bolts of construction. According to Healy, “The greatest leadership gap is between those who have physically worked in the field and have worked their way up to a leadership role in their company — and those who have not. The construction business is the most tangible industry in the world. Our future leaders need to know what it takes to physically build a project and the process to do so.” Construction leaders in training don’t dispute this point. They have an acute appreciation for the high standards and quality work of their predecessors and recognize that maintaining those same standards day in and day out is a challenge that will soon fall on their shoulders. “My generation must take every opportunity to learn from the veterans. That’s the only way we will be able to maintain the same level of craft that we’ve seen delivered by the previous generation,” explained Jessica Zmuida, estimating assistant at Torcon. Contrary to conventional wisdom, mentoring is not a one-way street. While learning in many companies typically flows from the top down, there is a growing movement in the leadership development world in support of reverse mentoring, that is, turning the tables and having new entrants in the workforce share their unique skillsets with established executives. This is especially salient for the construction industry given the advanced technologies in use and on the horizon. Many experienced professionals admit to not being as technologically adept as the rising generation that grew up with cell phones and social media ingrained in their day-to-day lives. They can, and should, take advantage of the opportunity to learn from the proverbial bottom up and maximize the total value of new professionals. Cultivating a Long-Term Pipeline of Talent Looking through a longer-range lens, mentorship at the high school level has proven to be one of the most promising ways to cultivate a pipeline of talent and leaders further into the future. Healy cited one of the industry’s biggest challenges as recruiting highly motivated people that are willing to start at the bottom and work their way up.
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By exposing potential talent to many elements of the industry early on while they are beginning to consider their future career paths, professionals in the field may well spark a specific interest in teenagers that ends up leading to their eventual life’s work. “It is not uncommon for a lot of high school students to have no idea what they’re really interested in. They may know that they excel in art or math, but aren’t completely sure on where to go from there,” said Tiffany Millner, Affiliate Director, ACE Mentor Program of Eastern Pennsylvania. Millner, who as a practicing architect mentored for seven years with the organization before joining ACE, said the mentorship program is a real eye-opener for kids. Over the course of 13 weeks, a select group of students in grades 9-12 have the unique opportunity to get an insider’s look at various career paths within the fields of architecture, construction and engineering. They are able to explore the ins and outs of the industry through the guidance of dedicated mentors as well as through educational activities such as site visits, professional office tours, workshops and a team project that addresses real-life scenarios. “We see it as our duty to energize youth about the world of possibility that the industry holds. It’s all about connecting the pipes — helping students make the connections about how the ecosystem works together to build things so they gain a better understanding of where they want to take their careers, all while enabling them to benefit from the professional and life experience that our mentors offer.” Millner says interest from schools and students has spiked but that the program’s growth is heavily dependent on mentors coming forward to volunteer their time. “Students can’t be what they can’t see. Mentors are the lifeline of our program and are the key to encouraging motivated students to put their talents to work within our industry. Even outside of a structured program, construction professionals would serve the industry well by making themselves visible and accessible to younger generations in any way possible. You just never know who you might inspire,” she said. Hands-On Learning There is certainly no substitute for learning from and in the field. Healy freely voices his concern: “An office used to be a job trailer…not anymore. The connection now between the office and the field is an email or text, not face to face and boots on the ground. That’s a problem. We need more leaders who take the path from boots to suits.” As construction evolves into a more professional industry, more graduates are coming out of college with their sights set on management roles in the office. Whether or not they have put their time in, so to speak, as other generations have, they want to head straight to the top. But for many aspiring leaders, experience on site and in the field continues to be invaluable. Without hesitation, Zmuida, who works full time while pursuing a degree in construction management at Drexel University at night, says the best education she has had to date is being out on site with Torcon. “I’m in an amazing program and I have amazing professors, but nothing compares to experiencing what you’re learning about in class in the
real world. Having the benefit of formal schooling and real-life experience day to day, things connect a lot better and I’m able to achieve a deeper level of understanding about what’s going on and why,” she explained. “For this very reason, I would love to see more opportunities for hands-on leaning throughout the industry.” Similarly, Casey Perry with Revolution Recovery, LLC, has great appreciation for her first experiences in the industry scaling in trucks at the recycling and waste management company. This unlikely post for the English major sparked a passion for construction and today she is firmly committed to making it her career. “I know my experience getting in at the ground level will serve me well as I work to advance my career,” said Perry. “Not only did I learn about recycling construction material, I was also exposed to things like what goes into a construction worker’s day or a driver’s day. This foundational knowledge has enabled me to excel at my job and take on increasing responsibility to manage accounts and help develop the business. To be a woman, wear a hard hat and shake a construction manager’s hand with confidence — I never thought I would be at this place in my life.” Working Together Charles Darwin famously said, “It is the long history of humankind … those who learned to collaborate and improvise most effectively have prevailed.” As much as young professionals can learn from seasoned pros or independently, an unmistakably critical aspect of their development comes from collaboration with their own peers. Regardless of the differences in their jobs, there is great value in coming together as a group to collaborate, share and support each other. There is much to be said for having a network of peers at the same stage of their careers who may be facing similar opportunities or challenges, or have like interests, needs or wants. Perry, a member of GBCA’s CLC Committee, shared her perspective: “Networking is the key to learning. By coming together, the next generation of leaders can educate each other and help develop each other professionally,” she said. “Personally, I know I can learn a lot from how my counterparts are achieving success in their organizations. By the same token, I welcome the opportunity to share my experiences with others. The bottom line is that we need to support and help each other instead of leaving people behind.” According to Healy, the CLC is in growth mode as it actively seeks to recruit new members to strengthen the group and the value it brings by way of networking and idea exchange. Looking Ahead No one can say with certainty where the construction industry will be in five, 10 or 15 years. But we do know that its stakeholders must work together expeditiously to prepare rising leaders to steward their organizations and our industry amid the changes and challenges that lie ahead. As the industry recovers and is poised for strong growth at last, we cannot afford anything except a fluid transition among the leadership ranks. So make yourself accessible, connect, share, teach and learn. And together, we will help ensure the next generation is well equipped to lead us all toward a promising tomorrow. n
WHAT ADVICE DO YOU HAVE FOR THE RISING GENERATION OF CONSTRUCTION LEADERS? “ Get involved and participate in all industry activities that are available to you, especially the GBCA. Network with your peers as you are the future leaders. Mentor the generation coming up behind you and learn as much as you possibly can from our current leaders. The construction industry is a broad spectrum; there is an opportunity to learn something new every day.” Emily Bittenbender Chairman of the Board, GBCA and Founder and Managing Partner, Bittenbender Construction, LP
“ Put your time in and get your hands dirty. Do not be afraid to take risks and to fail. You will learn to measure twice and cut once but experience comes from taking risks and failing but staying the course.” Sean Healy Vice President, Healy Long & Jevin and Chair of GBCA’s Construction Leadership Council
“ Communicate. If you have an interest in architecture, construction or engineering, communicate that to your parents, to your guidance counselors, to anyone who will listen. Someone will be able to connect you with someone else who can help you explore and pursue that further. If your drive is there, you will find your way.” Tiffany Millner Affiliate Director, ACE Mentor Program of Eastern Pennsylvania
“ Take time to learn from those who have built the base of this industry before you, but make your own ideas or opinions known. You need to be a little bit of a risk taker to reach your goals. Don’t be afraid to go up to people, shake their hand and jump into the conversation. I mean, if all else fails, bring up baseball — everyone loves baseball!” Casey Perry Revolution Recovery
“ As long as you’re willing to learn and listen, anything is possible.” Jessica Zmuida Estimating Assistant, Torcon ISSUE 2 | 2015 21
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Winter/Spring 2013 31
BECOME A FUTURE LEADER! by Lauren Tosti, Director, Marketing & Communications Construction Leadership Council The Construction Leadership Council (CLC) was established to fulfill the need to cultivate the next generation of leaders in the construction industry as well as the association both at the local and national levels. What do you get when you join the CLC? Membership in the CLC is a win-win-win situation.GBCA wins by being able to fulfill its mission of assisting and educating its members to the max. CLC member companies are the biggest winners of all. CLC committee membership is free per company, they get to assign as many of their employees as they wish to participate at the low cost CLC events and training. One important key to surviving in today’s economic climate is having a well educated staff that is confident that the company they work for cares about them. Knowledge is power — strength, ability, and potential.
• CLC Community Service Chair: Greg Lepore • CLC Safety Chair: Joe Pace Council Members: Open Membership: Open to member contractors, subcontractors, suppliers, and professional associates that have a minimum of 2-5 years of experience in the construction industry. CLC Members must be nominated by a supervisor. Yearly Commitment of Steering Committee: 6 Meetings and contribution to all CLC Endorsed Functions Yearly Commitment of the Council Members: 4 Meetings (Quarterly) and Participant / Contributor to all CLC Endorsed Functions / Events
Service - Education - Networking - Leadership It is critical that the young professionals of the membership within the GBCA develop into the future leaders of our industry, community and our association. Through education, networking and service each member of the CLC will grow to understand that construction starts with building relationships. Our goal is to develop the future leadership of GBCA that will continue to construct an industry that becomes safer and more productive.
Annual CLC Endorsed Functions, Activities & Events: • Hard Hat Tours of High Profile Projects – 2 per year. These tours will end with a networking / social. • CLC Sponsored Networking Events – 2 per year • Community Service Events or Sponsorships – 2 Per Year • Educational Lunch & Learns – 3 per year • Coordinated Cooperative Networking Event – 1 per year • Mentor/ University Program – 1 per year
Get Involved If you would like more information or would like to join the CLC please contact Lauren Tosti, Director of Marketing & Communications, ltosti@gbca.com.
Structure of the CLC
The CLC is also a forum that performs the below: • To be an open opportunity to exchange ideas • To be an entry vehicle into the GBCA / AGC to promote new member involvement • To foster a strong network among peers • To create a foundation for future development of the industry • To discuss the most important issues and provide feedback to GBCA leadership • To provide leadership skills • To provide a mentoring program with established officers and committee members • To structure GBCA / AGC and the construction industry for the coming centuries • To network with similar organizations in the industry
Steering Committee: • CLC Chairman / Government Affairs Chair: Sean Healy • CLC Vice Chair / Membership Chair: Maura Hesdon • CLC Events Chair: Matthew Freeh • CLC Professional Development / Education Chair: Anthony Armento
Connect with the National CLC Join the CLC listserve to receive Leadership-LINK, the CLC newsletter; announcements; and information about upcoming events. To join the listserve login or create an AGC profile and check off the Construction Leadership Council eforum box. n
Mission Statement The CLC is group of young construction professionals (ages 40 and younger) who are committed to maintaining, improving and promoting the construction industry and our association through education, networking and service. The CLC will promote the mission of the GBCA while building the future foundation for our association, industry and leadership.
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OSHA SUBPART AA CONFINED SPACES IN CONSTRUCTION
OSHA HAS FINALLY RELEASED THE CONFINED SPACES IN CONSTRUCTION STANDARD by Donald Ashton, Director, Safety Services Before we can begin to understand the purpose and value of the new standard we need to understand what a confined space is. OSHA defines a confined space as a space that: • Is large enough and so configured that an employee can bodily enter into it; • Has limited or restricted means for entry and exit; AND • Is not designed for continuous employee occupancy. A confined space must meet all three of these criteria in order to be considered a confined space. An over-the-road trailer (often used as an on-site office, storage, or shape-up trailer) is a prime example of a confined space. Consider: • It is large enough to be walked into by a worker or workers; • It has only one (1) entrance/exit door at the rear of the trailer; • It is designed for the transport of cargo NOT continuous human occupancy. It is important that employers recognize confined spaces however, for purposes of the standard, the regulations only apply to permitrequired confined spaces. A permit-required confined space meets the three criteria used to define a confined space however that space also: • Contains or has a potential to contain a hazardous atmosphere; • Contains a material that has the potential for engulfing an entrant; • Has an internal configuration such that an entrant could be trapped or asphyxiated by inwardly converging walls, or by a floor which sloped downward and tapers to a smaller cross-section; OR • Contains any other recognized serious safety or health hazard. The new Confined Space standard requires that BEFORE an employer begins work at a worksite a competent person identifies all confined spaces where one or more workers may work, and identifies each of those spaces that will require permit. (Some spaces may not be immediately recognized as ‘permit required’ and will require additional consideration and evaluation including testing as necessary.) 24 CONSTRUCTION TODAY
If the workplace contains one or more permit-required spaces, the employer who identifies, or who receives notice of, the space must: • Inform exposed employees by posting danger signs (or by equally effective means) of the existence and location of, and the danger posed by, each space. (A sign reading DANGER - PERMIT-REQUIRED CONFINED SPACE. DO NOT ENTER” would meet this requirement. • Inform, in a timely manner AND IN A MANNER OTHER THAN POSTING, its employees authorized representatives and the controlling contractor of the existence and location of, and the dangers posed by, each space. The standard dictates a high level of communication from the top down, and then again from the bottom up. Owners or managing partners of the work site (Host Employers) must communicate anything and everything they know about existing permit-required confined spaces to the employer having overall responsibility for construction on the site. (Controlling Employer) The controlling employer must then communicate that information to the employers who will have workers entering the spaces, (Entry Employers) and to any employer who will work near or be possibly affected by a space. (Affected Employers) Upon completion of work in a permit-required confined space the Entry Employers must debrief the Controlling Employer about the space, hazards encountered, and actions taken to prevent or eliminate such hazards. The Controlling Employer must then debrief the Host Employer with this information. There are many issues to be discussed in the new standard including, but not limited to, Attendants, Entrants, Rescue Plans, Early Warning Systems, and Permits. The Confined Spaces in Construction Standard can be found on the GBCA website in the SAFETY section or by visiting the OSHA website at www.osha.gov. Weekly updates and instructions regarding the standard will also be issued by the GBCA and copies of such updates will be available on the GBCA website in the SAFETY section. The GBCA website can be found at www.gbca.com. n
built to Succeed in construction ConstruCtion
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www.cohenseglias.com united Plaza, 19th Floor 30 south 17th street Philadelphia, Pa 19103 215.564.1700 edward Seglias, esq. | eseglias@cohenseglias.com Pennsylvania
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ISSUE 2 | 2015 25
26 CONSTRUCTION TODAY
HYATT AT THE BELLEVUE
200 S. Broad Street, Philadelphia, PA 19102 November 5, 2015 | 5:30 – 8:00 PM | Cocktail Reception followed by Awards Ceremony $125 per person
THE 18TH ANNUAL CONSTRUCTION EXCELLENCE AWARDS
is the premier construction awards program, recognizing excellence in construction, safety, and diversity. The Excellence Awards Program is dedicated to creating a great awareness throughout the region of the quality workmanship produced by GBCA member companies. We invite you to join us in recognizing our region’s winners at this spectacular event! Sponsorships are also available. Space is limited, so register today!
2015 CONSTRUCTION EXCELLENCE AWARDS: SPONSORSHIP LEVELS PLATINUM SPONSOR ...............................................................................................................................................................$5,000 Event Print On-Line
• Banner with Name/Logo displayed in reception room (and banner is yours to keep) • Name/Logo on GBCA sponsor boards displayed throughout the event • Recognized as Platinum Sponsor during the opening remarks of the award presentations • Opportunity to display or distribute pre-approved marketing materials at the event • 8 tickets to the event • Recognition as the Platinum Sponsor in the CEA Program • Name/Logo on GBCA event website • Feature article on your company in one issue of News at a Glance
GOLD SPONSOR .........................................................................................................................................................................$2,500 Event Print On-Line
• Tablecloth Banner with Name/Logo displayed at Dinner (and banner is yours to keep) • Name/Logo on GBCA sponsor boards displayed throughout the event • Opportunity to display or distribute pre-approved marketing materials at the event • 4 tickets to the event • Recognition as the Gold Sponsor in the CEA Program • Name/Logo on GBCA event website
SILVER SPONSOR .......................................................................................................................................................................$1,000 Event Print On-Line
• Name/Logo on GBCA sponsor boards displayed throughout the event • 2 Tickets to the event • Recognition as the Entertainment Sponsor in the CEA Program • Name/Logo with link to company website on GBCA event website
BRONZE SPONSOR .......................................................................................................................................................................$500 Event Print On-Line
• Name/Logo on GBCA sponsor boards displayed throughout the event • Recognition as the Photography Sponsor in the CEA Program • Name/Logo with link to company website on GBCA event website
PATRON SPONSOR ........................................................................................................................................................................$250 Event Print On-Line
• Company Name on GBCA sponsor boards displayed throughout the event • Recognition as a Patron Sponsor in the CEA Program • Company Name on GBCA event website
For more information, contact Lauren Tosti at 215-568-7015 or email at ltosti@gbca.com.
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SAVE TIME, SAVE MONEY AND WIN NEW BIDS by Kevin Halter for Associated General Contractors of America Co-Founder and VP of Business Development Getable, On-Demand Equipment Rental Procurement
Many contractors are wary of spending money on new mobile applications, because they have been successful for years without them. They do everything with flip phones, Excel spreadsheets, Microsoft Outlook, and ERP/accounting software. Contractors invest in people, equipment and trucks. They buy materials and supplies. They have built a successful construction business over several decades by building new roads, bridges, and highways or office and commercial buildings. Why should they invest in new technology? The average profit margin on a heavy-civil project is 2-3 percent and low bidder wins. Contractors should look for anything to make them more profitable and give them an edge in winning new projects. Technology can help control costs, in order to ensure their profit margins are not wiped clean. Investing in technology also allows time to acquire the leverage to bid more aggressively, in order to win future projects. The biggest monetary driver for any project is labor and people, which accounts for more than 40 percent of any project cost. Any technology, which makes labor and the team more efficient, will make a company more profitable. How can technology reduce trips back to the trailer? Remove unnecessary phone calls, conference calls, or in-person meetings? How can online and mobile technology empower a contractor’s team with information at their fingertips to make better business decisions? How can technology improve the communication between the field, office, equipment, dispatch, and executive team? How can technology improve the communication between subcontractors and suppliers to keep the project on schedule? Although the construction industry has been late to adopt new online and mobile technologies, contractors will be one of the biggest users and benefiters long term. After healthcare, construction is the second largest, skilled mobile workforce. No one is making minimum wage on a jobsite. Skilled construction labor earns anywhere from $30-$130 per hour and is the biggest driver of jobsite costs. It is also the biggest opportunity to drive increased margins and profitability for a project. In construction, people are spread out across a jobsite, which can stretch miles, offices, trailers, floors of a building, or across an entire region serving multiple jobsites. Contractors work with owners,
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architects, many subcontractors, and many suppliers, in order to build a new bridge, highway, or office building. Anything that can be done to improve communication, visibility, and transparency among all of these internal and external team members has the potential to increase profit margins. Construction projects can also receive millions of dollars in awards for finishing on time or early. Time is money. What online or mobile application can you deploy to save your projects time? With construction picking up in some U.S. markets, competition for talent has increased. The best, young civil engineers and construction management students grew up with smart phones. They used the latest technology in school and at home. They expect the same from their employer. If contractors want the best talent graduating today, they need to have the best tools for them to do their job. In fact, one of the largest heavy commercial builders in California recently shared that they began adopting new mobile apps solely for the reason that they were losing the war for talent coming out of school. It’s not just young employees either. Senior engineers and superintendents want new tools to save them time and help them do their jobs better. They have families and children at home. Any technology that saves them a few hours a week gives them more time with their family and leads to a happier employee. New technology also empowers them with data to make better decisions for the project. The best talent in the industry expects to use the best technology tools in the market. By the end of 2015, 100 percent of contractors will have a smart phone and 60 percent will own a tablet 1. The first contractors to deploy innovative new technology solutions will be more profitable, win more projects, recruit the best talent, and will have a head start on finding new ways to leverage these innovations on jobsites. The last contractor to bring technology to the jobsite may find himself significantly behind the competition. When contractors examine new online or mobile applications, they should look for ease-of-use, end-user-driven product development, speed of development, and cross-platform ability. With regards to ease-of-use, does the new application require lengthy in-person training? How long does it take for a user to learn and adopt the application to its fullest extent? Amazon doesn’t teach anyone how to shop on its website. In other words, the software needs
to be intuitive and easy-to-learn or contractors will waste money on training, implementing, and getting a high level of employee adoption with the software. End-user product development is the degree to which a software company involves the end-users in their product decision and roadmaps. How often does the software company change their roadmap based on user feedback? How often do they speak with end users regarding their needs and feature requests? How quickly do those needs go into the product development cycle? They should be speaking to their end users on a weekly basis. Speed of development is the rate at which new features and product improvements are released. What is their release cycle? Continuous, weekly, monthly, quarterly, or annually? The faster the release schedule, the more responsive the software team is to the needs of their end-users and the quicker they release new features and improvement. Cross platform is the ability of the application to work across mobile operating systems and online via web browsers. Depending on the application, you may want Android and iOS or online access via a desktop or laptop. Today, 70 percent of contractors use an iOS device (iPhone or iPad), which is the leading operating platform for the construction industry. Many contractors want online access, in addition to mobile access. Here are a few good mobile applications to consider: 1. FieldLens: Mobile and web application that improves project communication between a general contractor, subcontractor, architect, and owner. Document job issues with photos and punch lists. Communicate about those to-do items.
2. PlanGrid: Plans on an iPad and iPhone. Everyone on a project team is instantly updated when there are changes made to any documents. Always work on up-to-date plans and improve communication via the field, project engineering, and architect teams. 3. Heavy Job: Daily job costing and time entry. Real-time, data on production levels. 4. Bim360Field (previously Vela): Punch lists, safety and quality issues, and field data management. More and more contractors are adopting the above mobile applications. iPhones and iPads are being deployed on jobsites every day. The rising contractor demand for new online and mobile applications will drive new software innovations in the coming years. The contractors, who take advantage of these applications, will increase their profit margins, attract top talent, win new bids, and save their projects time and money. Kevin Halter is the co-founder and VP of business development at Getable, a mobile and online platform for procuring and managing equipment rentals. Getable tackles all of the challenges with equipment rentals, such as untimely off-rents, cycle billing, availability, and local competitive pricing. Getable improves communication, transparency, and visibility of equipment rentals on-and-off a jobsite and saves contractors significant time and money. n 1 According to Engineering News Record (ENR).
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FIVE TIPS FOR GENERAL CONTRACTORS TO MAKE THEIR SITES SAFER AND MORE EFFICIENT
30 CONSTRUCTION TODAY
by Jay Olsen for Associated General Contractors of America On a busy jobsite, there are subcontractors everywhere — from carpenters and glaziers to bricklayers and ironworkers — all getting along with their own jobs. The carpenters don’t know the ironworkers, and the ironworkers don’t know the bricklayers. They might have seen each other around on other jobs, but they’re not on first-name terms with one another. If someone were to ask one subcontractor what the other guys were working on, he probably wouldn’t have much of an idea. It’s not his job to know, so why should he? It is, however, the general contractor’s job to know this, and this kind of poor communication can lead to huge inefficiencies and even fatalities. In 2012, the construction industry accounted for 16 percent of all workplace fatalities in the United States. That’s 775 construction workers killed on the job, with the majority being caused by the “Fatal Four” — falling, getting hit by an object, electrocution, and being caught in or between objects. The industry is moving in the right direction. Workplace fatalities are down 35 percent since 2006, but there still is room for improvement. Here are five ideas to help general contractors coordinate subcontractors and make sure that their sites are as safe and efficient as possible: 1. EMBRACE TECHNOLOGY FOR EFFECTIVE INTERACTION Construction industry professionals often are stereotyped as a bunch of illiterate knownothings, but the reality is that most of them are college graduates. Construction is a chosen field like any other — and a majority of the guys are smarter than they’re given credit for. One way to start using these smarts is for the industry to embrace technology. General contractors shouldn’t spend 20 minutes wandering around a site in search of subcontractors when they could just call or message them. Of adults who are online, 73 percent use social media regularly, according to a study by the Pew Research Center. Applications such as WhatsApp allow people to create groups so that they can contact all of their friends in one easy message. This method can easily be applied to a jobsite so that everyone gets to know one another. Contractors can employ cloud software to facilitate conversations between different
subcontractors. Even better, if confusion arises, people can always refresh their memory by going back to the pertinent message. Technology also can be used to create and maintain a site directory. In the past, the site contact directory was a book held by the superintendent, who had to waste his valuable time handing out phone numbers to everybody. It’s not a bad thing to keep that book on-site, but it’s a lot quicker to make an electronic copy and share it with everybody. Technology is an important aspect of society today, so the construction industry should use it whenever possible to increase safety and efficiency. 2. IMPLEMENT A JOBSITE HIERARCHY When a subcontractor arrives at a jobsite for the first time, he knows what he’ll be doing. The specifics might change, but the general gist of his work has already been spelled out for him. Furthermore, he needs to understand the channels of communication. Subcontractors should know the jobsite hierarchy, what to do in case of emergency, and where to report problems.
multilingual curriculum to help break down language barriers. Anything that can be done to promote good relationships on a jobsite will help improve efficiency and safety. 4. GIVE EMERGENCY UPDATES An alarm is sounding, but nobody knows why. People are standing around, scratching their heads, and looking to their colleagues. Is it a fire? Has there been an accident? Does the jobsite need to be evacuated? It’s absolutely vital to ensure that teams know the correct channels for emergency updates. If an alarm is sounding, everybody should know exactly what that means and what to do. If a team member finds a problem, he has to alert people. Is it by phone? If so, contractors must be aware of the people they have to contact. Establish a phone tree. This guarantees that information is spread as quickly and efficiently as possible. 5. EMPOWER EVERYONE TO CHECK IN AND CHECK OUT
Every subcontractor must comprehend not only the structure of the building, but also the structure of the workplace. This means having a clear jobsite communication plan. General contractors ought to include the communications requirements in their contracts so that everyone knows what to expect on day one.
Most hotels will ask guests to leave their keys at the front desk when exiting the building. This not only stops guests from losing keys, but it also helps hoteliers know how many rooms are occupied at any given time. Information like this ensures they can respond quickly in the event of a fire or some other situation that requires evacuation.
3. HOLD REGULAR GROUP DISCUSSIONS
In the same vein, jobsite workers need to check in and check out. This helps the general contractor track progress and coordinate between multiple trades.
When issues arise, people need to talk. Holding regular group discussions affords subcontractors the opportunity to get to know each other a little better. Some companies do these on a biweekly, weekly, or daily basis. The optimal frequency depends on the jobsite. While they do improve communication, these meetings also can help build workplace camaraderie and create a better jobsite environment. Remember that poor rapport between contractors and subcontractors is a major cause of communication breakdown. It also is important to ensure that everybody can communicate. Do all of the subcontractors speak English as a first language? If not, then contractors can consider introducing a solution such as the one pioneered by Fernando Aveiga for Associated General Contractors of Iowa. Aveiga developed a
If the carpenters are waiting for the ironworkers to finish a task, but the ironworkers have left without telling anybody, then there will be a delay. Having an established system for identifying who is on-site at any one time will help avoid major headaches. It can also potentially save lives. If bad luck strikes and an accident happens, nobody wants to look for the guy who forgot to clock out. Even something as simple as going to the restroom without telling anyone can cause major worry. Misunderstandings waste time and slow down progress. Jobsite communication is key to ensuring everyone is safe, efficient, and on a first-name basis with every subcontractor on location. n ISSUE 2 | 2015 31
by Gersil N. Kay, IESNA, AIA/HRC Conservation Lighting International Ltd., and Building Conservation International 2015
IoT
AND OTHER ALPHABETICAL COMBINATIONS
32 CONSTRUCTION TODAY
The latest combination of initials in widespread use representing a discipline or organization is IoT. Like ABT (American Ballet Theatre), ASHRAE (pronounced ash-ray = American Society of Heating, Refrigerating and Air Conditioning Engineers), M/E (Mechanical-Electrical) and AC (air conditioning), these acronyms usually make the conversation of those-in-the-know unintelligible to the general public. The IoT (the Internet of Things) theory began in the year 1003, when the Chinese emperor decreed that all architectural construction components had to be standardized to be interchangeable with every manufacturer. This practical concept was eventually forgotten, so for centuries thereafter, because of the lack of standardization, buyers could ONLY purchase additional parts from the makers of the original item, in order for them to work properly together. Even today, diversification of many items of similar use still exists throughout the world, such as the common electrical receptacle on the wall. It requires different plugs in different countries. Indeed, some important technologies, such as the ingenious, but notthere-yet LEDs, are STILL not standardized, inhibiting the usage of the IoT.
It wasn’t until the American Civil War (1860s) that the notion of standardization was revived for gun parts. Now this clever thought has morphed into the Internet of Things (IoT). The object of IoT is to have devices that are both connected and intelligent. Formerly, one tool could transmit information, but had no intelligence. The other had onboard processing intelligence, but couldn’t communicate outside of the closed circuit. This radical change of operations combines as one the Internet, physical machines, and the virtual world of information technology (IT). The new network of systems is expected to be flexible and accessible to all those in charge. It evolves and adapts for faster, effective decisions. It even alerts need for maintenance or warns of approaching equipment failure. Note that standardization is not the same as Standards. All standards represent only the barest minimum of requirements. If followed slavishly, without imagination and thought, there will be only minimum results. Standards also do not call for good design. Thus, a standard may be followed correctly, but ugly, or difficult to use. The Internet of Things in the United States in Europe is called Industry 4.0 Cyber-physical systems. This means it is the fourth industrial revolution:[1] • The first industrial revolution was the Steam Engine, 18h century; • The second was conveyor-belt use for assembly lines, early 1900s; • The third was development of microelectronics, the PC and programmable logic controller PLC), mid 1900s. This revolution was brought about by the judicious mixture of many talents. Because of it, during World War II, many imaginative, still-useful ideas appeared, This brilliant combination of a variety of disciplines and people, included the late, lamented Bell Labs in the USA, and Bletchley Hall, in the UK, which not only broke the Axis code, winning the War, but created the computer. A similar mingling of large and small, new and old architecture is the sign of a successful Civilization. It makes for an interesting environment that encourages imagination for new ideas. •T he fourth revolution (IoT) connects PCs and machines to the Internet. IoT has four basic elements connected to local information technology (IT): A. The actual devices B. Connectivity to and from that device
C. Data, including condition of the equipment D. Analytics to make decisions from remote monitoring As of July, 2015, The Internet Protocol for Smart Object Alliance (IPSO), includes the following IoT industry leaders to support the adoption of Internet protocol (IP) to connect smart objects: • Aricent • Ayla Networks • Everex Communications • Intel • Nanjing Conformation Technology • Sed Labs • Universal Devices Unfortunately, desired modern goals like IoT, Net-zero Energy, and extensive Automation, may never be completely achieved, because: 1. Humans are so unpredictable. A single untrained or careless user could sabotage the best designed/installed plan. 2. The IoT requires total standardization in every industry, with extensive coordination, communication and cooperation, and initial large expenditures in consulting and equipment upgrading. Those unknowledgeable cowboys looking for the cheapest way to a fast buck, will not conform to spending money and hiring the right people to implement IoT. Although their fly-by-night companies will disappear, those who purchased their products, wanting the cheapest initial cost without doing sufficient checking for quality, are stuck playing Russian Roulette with disruptive and crashing products. You get what you pay for. 3. In addition to humans, automated machines and electronics can also fail. When a flight carrying 245 people on automatic pilot, suddenly had trouble, the human pilot had never been trained how to MANUALLY correct the problem. The plane fell, killing all. Upgrading a business plan could take time, so companies who start sooner, will be ahead of the game of using automation and standardized components. It is estimated that by 2020, the number of connected devices could reach anywhere from 25 to 75 billion. If you don’t have a workable software and business program ready, it will be impossible to manage the product complexity. Blaise Pascal, a 17th century French mathematician, wrote, “I have made this letter longer than usual, because I have not had time to make it shorter.” Mark Twain also proposed simplicity. And Albert Einstein is
attributed with “Everything should be made as simple as possible, but not simpler.” To be effective, complex programs should be foolproof and intuitive, not needing a high learning curve. As well as simplicity, alphabet names, such as UI (user interface), PLM (product lifecycle management), and UX (user experience) must also offer privacy, safety, security and virtualization. No matter what the subject, the five “Ss”standardized, sustainable, simple, scalable and secure, plus concern for the environment, must be present before proceeding with any fresh actions. There is a huge challenge of what information to gather, and how to integrate it into back office systems. The IoT will be most useful for industrial and public service sectors, including smart buildings and grids, retail, manufacturing and agriculture. Before making any selection, do not rely just on the cost of the equipment, consultants or software, alone. Estimate the APPROXIMATE TOTAL PRICE from the beginning to the end of the project. For example, for construction, include design, equipment, programming, controls/interfaces/automation, installation, maintenance, energy costs, and final disposal. The figure will be enlightening. And, “Ask the man who owns one” — check with three present users of the considered equipment. For manufacturing, The Industrial Internet of Things (IIoT) contains programmable logic controls (PLCs,) input-output (I/O) blocks, drives and vision systems. IIoT makes the things for IoT. It is the fifth generation (5G). An example of a Smart Factory: Order reaches the plant. IIoT System determines the necessary materials, the required machines for components, calculates how to best move the custom order through the factory, and constructs the product. Alphabet soup is involved in this entire process of IoT, such as, In manufacturing: GUI = Local graphical user interface IT = Information technology OEE = Overall equipment effectiveness EPC = Electronics product code HMI = Human-machine interface OS = Operating system PAC = Programmable automation controllers PLC = Programmable logic controller PS = Power Shell VM = Virtual machine technology WMI = Windows Management Instrumentation
ISSUE 2 | 2015 33
In running a profitable business, energy conservation is now allied with the IoT. However, excessive methods to save energy on a project must be avoided. That would only waste effort and money, because people will always find ways to circumvent unwanted or impractical regulations. For the optimum results, know and use ALL the most energy-efficient technologies best suited for the particular application. Remember, One size/type does not fit all. First, start with the basic ways, and only escalate to more complex means if really needed, and the users can handle it. Be sure to instruct every new team member in the new operation. The empirical procedures developed over centuries of trial and error, are not old fashioned, but the original “green” energy-efficient basics from which to advance. Knowing them keeps future generations from having to constantly reinvent the wheel for facts already discovered, but forgotten when they were mistakenly eliminated from practical education. A workable design obeys the immutable physical laws that: a) Water runs DOWN b) Heat RISES c) Light DIMINISHES with age, distance thrown, and surrounding environment
Moreover, nothing takes the place of in-thefield working on real projects, under experienced supervision, to become competent in physical tasks like building and medicine. This feature should always be included in the plan. Too often, a completely “avant guard” effect, like rapid color changing, catches the eye the first few times, but becomes tiresome after constant repetition, its unique features soon being replaced by the next fad. Note that in the 18th century, when Philadelphia was the second largest English-speaking city in the world, it produced many American “Firsts”. However, its architecture was classic, copied from the pattern books of traditional London buildings. Being the first one on the block to use a highly promoted new theory could make the buyer a guinea pig, having to do significant testing that the factory ignored. Some major firms like Microsoft actually depend on users to report on improvements/defects in the latest introduction rushed out without internal analysis. This cost-saving trick goes hand in hand with the merchandising ploy of fast obsolescence, making each new type brought out requiring purchase of yet another non-compatible version, discounting standardization and sustainability.
Indeed, too often, without checking with the users, some wanted features, like USB ports and slots for disks in computers, are arbitrarily eliminated in the next design, so additional, expensive add-ons to replace them must be bought. Again, standardization and sustainability are ignored. In the question of so-called “climate change”, the considerable on-going private industry efforts in decreasing CO2 omissions must be taken into account. Sometimes, they may be sufficient without arbitrary government restrictions. Nevertheless, it seems some consultants, looking for new high fees, and purveyors of unnecessary equipment for unproven difficulties, promote Chicken Little’s cry, “The sky is falling!”. While protection of the environment is critical for human survival, urging over the top “green” undertakings to solve non-documented evils, for political or economic gain, is dirty pool. Buyer Beware. Seek documented scientific data from third parties, before acting. This article represents only the tip of the iceberg on the subject. For IoT to work effectively, use of experts in the field, and sufficient technical research must be present before this new thinking can be added to older concepts. OK? (= the two initials understood by everyone.) n
DEAR GBCA MEMBER, As your new Membership Development and Services Manager, I am thrilled to be a part of the GBCA staff that serves you. A building is erected with the talents of many people. These talented people are you, the members of GBCA. It is my privilege to be able to work with you. I’ll be in the field and in the office meeting members and listening to your thoughts on how GBCA can better serve you. I’ll also be encouraging other talented people within the industry to join us. This is an exciting time for GBCA as we keep expanding our benefits to our members. Myself and the rest of the GBCA staff are working to increase your opportunities to network with other talented people within the construction industry and in related fields, have a stronger voice in issues affecting the industry and keep you more educated in safety related matters and business trends. 34 CONSTRUCTION TODAY
I have a B.A. in Communications and my background is in the fields of healthcare, retail and education. In each of these fields, it was the people defining the business and leading the trends that made a difference to the patients, customers and students that they served. I was fortunate enough to work with and learn from some of the best people within their fields. I am now fortunate enough to work with you, the best trained, highly skilled and most trusted contractors in the region. I look forward to meeting all of you. I am here to serve you. Please feel free and I encourage you to contact me at any time. Anne Liberto Membership Development & Services Manager aliberto@gbca.com
Experienced
Innovative
Efficient
Not every contractor has a law firm on retainer. For those times you wish you did, Spruce Law Group, LLC will offer legal services through a preferred arrangement exclusively to GBCA members beginning in January 2015. ISSUE 2 | 2015 35
36 CONSTRUCTION TODAY
CREATING A CULTURE OF INCLUSION by Benjamin Connors, Co-Director Since its establishment in 1891, the General Building Contractors Association (GBCA) has been committed to advancing the commercial, industrial, and institutional construction industry. A major part of upholding this commitment today is supporting GBCA’s MBE, WBE, DBE and VBE members and ensuring that there is a diverse, well trained, skilled and educated workforce to support the continued growth of our industry. Fostering diversity in the construction industry is more than just fair and equitable, it is also economically beneficial. A 2013 economic impact study by Econsult showed that the $12 billion investment of new construction and major renovations in Philadelphia that took place between 2003 and 2013 generated a total economic impact of $18 billion, supported 65,000 jobs and created about $3 billion in earnings, which in turn generated $167 million in City Tax revenues. While commercial construction was a significant economic driver for Philadelphia and the region over this 10 year span, the further diversification of the construction industry will serve to only further compound the positive economic impact of commercial construction. Diversification grows the tax base and increases personal expenditures of Philadelphia residents, thereby raising the resources needed by the City to further improve Philadelphia — which in turn encourages further development and growth. In order to raise awareness of the importance of diversification, GBCA has begun a series of panel discussions. The first panel discussion took place on June 23, 2015, titled, “Diversity & Inclusion: Why it is Vital to our Industry.” The discussion brought together a large number of attendees, and an impressive panel which included; Angela Dowd-Burton, Executive Director, Office of Economic Opportunity, City of Philadelphia; Bob Francis, Chief Facilities Officer, Drexel University; and Paul Horning, VP of Preconstruction at Clemens Construction Company, Inc. The discussion was moderated by Dr. Lucy Kerman, Vice Provost of University & Community Partnerships, Drexel University. The panel discussion took place at the Dornsife Center for Community Partnerships, a fitting backdrop since it was rehabbed by GBCA member company P. Agnes Inc. The Dornsife Center project involved community outreach plans and goals collaboratively set forth by Drexel University and P. Agnes Inc., involving community organizations and religious institutions. Following the success of the first panel discussion on construction industry diversity, GBCA plans to continue the conversation through future discussions on how to involve the local community and help make our job sites more reflective of the neighborhoods in which they are housed. GBCA is also committed to helping serve those that have dedicated their lives to serving our country. This year GBCA participated in the 2015 Hiring our Heroes employment fair; collecting job descriptions from many of its member companies, as well as materials from a number of local unions to be given to transitioning service members and military spouses. Through our ongoing discussions
and events like Hiring our Heroes GBCA hopes to create the culture of inclusion necessary to ensure a more prosperous construction industry in our region. In addition to participating in GBCA sponsored events, many member companies have been spear-heading their own initiatives around workforce development. Turner Construction Company has been running the Turner School of Construction Management since 1979. The School of Construction Management was developed to educate minority and women-owned small businesses on important topics such as safety, finances, purchasing, and marketing. Turner’s Philadelphia office alone has awarded more than $700 million to business enterprises owned by minorities, women and the disabled. Turner successfully reached 54% minority participation on their nationally acclaimed Philadelphia Eagles’ Lincoln Financial Field Project, and attributed a large part of this success to the Turner School of Construction Management. Other GBCA companies have taken additional measures to ensure they maintain a diverse workforce on their jobs. Torcon, Inc. adhered to their Equal Opportunity Program (EOP) when completing both their Saint Christopher’s project and their Wanamaker Building project at Temple University. Torcon’s EOPs included minimum requirements for both local labor and MBE/WBE/DBE participation. Bittenbender Construction has gone to great lengths to incorporate the community surrounding their projects at Drexel University. In order to further foster their relationship with the local community Bittenbender Construction chose to open an office in the Mantua neighborhood of Philadelphia. Another GBCA member, Shoemaker Construction Company, recently exceeded EOP goals on both a replacement garage project at Temple University Hospital and a federal project for Amtrak to renovate the West Plaza. Shoemaker exceeded its contract goal of 10% to Disadvantaged Business Enterprises on this $32M project. Upon completion, the West Plaza project successfully reached 46.3% DBE contracts. Looking to the future, Shoemaker has teamed with Skanska as Shoemaker Skanska, JV, to complete the renovations to the Gallery at Market East. While construction has not yet begun, Shoemaker has already initiated an open dialogue with diverse contractors to pre-qualify them and to introduce potential team members to the large subcontractors capable of completing $5M to $20M packages. These are but a few examples of how GBCA members work every day to further the diversification of the construction industry. GBCA continues our commitment to advancing the construction industry through its support of our MBE, DBE, WBE and VBE members and by ensuring that there is a diverse, well trained, skilled and educated workforce to support the continued growth of our industry. Striving to achieve a more diverse construction industry is both a moral and economic imperative and will help ensure the continued growth and prosperity of Philadelphia. n ISSUE 2 | 2015 37
TAKE YOUR
CAREER TO THE NEXT LEVEL by Angela Louro, Manager, Education & Professional Development As GBCA powers through its 125th year, we recognize that education and professional development play a vital role in building a successful career in construction. Since 1961, GBCA has strived to offer comprehensive education and training programs to ensure a highly-skilled, productive and motivated workforce. Over the last 53 years, thousands of individuals have participated in GBCA-sponsored education classes to advance their careers in the construction industry. These courses have been specifically chosen and tailored in collaboration with our university and education partners to suit individuals from entry level positions, to apprentices and supervisors, to the most seasoned project managers and executives. Employees of GBCA member companies have unparalleled access throughout the year to a variety of courses and professional development seminars, which are made possible through funding by the Industry Advancement Program (IAP). Continuously offered education and professional development programming enables construction personnel to enhance their knowledge and fine-tune skills, that will in-turn enable GBCA member companies to maintain the highest industry standards. As of August 1, 2015, GBCA Active and Associate members, and contributors to the GBCA-administered IAP are eligible for up to $2,000 per pupil, per semester for any of the approved courses. The maximum tuition reimbursement for each student is $4,000 per year. This represents an increase of $875 per pupil per semester.
38 CONSTRUCTION TODAY
Whether you’re looking to move from the field to the office, grow your skills in project management, complete your first undergraduate degree, obtain a master’s degree in Construction Management, or obtain a certificate from a prestigious university, we encourage you to review the following course offerings and consider participating in the GBCA-sponsored education courses program. The course guides, distributed this summer, are available online at www.gbca.com/education. The guides provide a description for each of the courses chosen for this program from each university or institution. Once you’ve identified the courses you wish to take, you can fill out GBCA’s application form online, and also find updated information on when and where the course is being offered, as well as the cost and how to register. We will continually keep our website updated with upcoming courses. This year we’ve added some wonderful undergraduate and graduate certificate programs, as well as new courses and additional university partners. We strive to offer our members access to the best classes, trainings, and programs, so stay tuned to our website for updates. If you have questions at any time, or need some guidance on where to start, please contact our Manager of Education and Professional Development, Angela Louro at 215-568-7015 or alouro@gbca.com. n
INTRODUCING THE
AGC ALTERNATIVE NO ASSEMBLY REQUIRED from the Associated General Contractors of America The AGC Alternative is a private insurance exchange that operates like an online store (think Amazon.com), making it easy for your employees to shop for health insurance and other benefits all on their own or through the help of our dedicated employee hotline. It is interactive, easily reproduced and available exclusively to AGC member companies interested in having its own insurance exchange — not only to offer a broad range of health and other insurance benefits to its employees but also to administer the benefits they select. Discover how the AGC Alternative can help you build a better employee benefits package — one that benefits you and your employees. Save Money Not only do competitive employee benefits programs help you reduce costly employee turnover, but AGC member firms can save even more through premium discounts on health* insurance, dental, vision, life, disability, and legal service coverage through The AGC Alternative. Control Costs The AGC Alternative moves companies from traditional health plans, in which the employer pays a percentage of each employee’s premium, to a defined contribution model, in which the employer pays a defined dollar amount per employee, which employees can then use to individually purchase health insurance and other benefits directly from selected carriers through the private exchange. This enables employers to not only provide greater plan choices and benefit options for employees, but to budget a set dollar amount each year for employee benefits, eliminating the cost variables associated with employee plan selections. In addition, The AGC Alternative includes an embedded wellness program, which helps employees stay healthy. Wellness programs have proven to be effective for managing long term premium increases by promoting and rewarding healthy choices. The program helps employees set goals and find ways to stay healthy and prevent more serious issues through healthy lifestyle coaching, for example. This can lead to improved productivity and employee retention, better employee health and morale, and can lower health-related costs for your company. Simplify The AGC Alternative operates like an online store (think Amazon. com), making it easy for employees to shop for health insurance and other benefits all on their own. The private exchange is centered around an online decision-support process that walks employees through a brief questionnaire about their health, lifestyle and coverage preferences, and based on sophisticated statistical modeling, recommends a combination of plans based on the individual’s answers to those questions. Employees can get immediate access to in-depth information on all of the available plans, compare different selections to the systemrecommended offerings, add their selections to their personal shopping
cart, purchase coverage using the dollars provided by the employer, and finally, self-enroll in each plan right online … all without burdening HR. Backed by a dedicated employee support hotline, the AGC Alternative makes it easier than ever for HR professionals to enroll and administer benefit programs for organizations of all sizes. Give Employees Increased Choice and Flexibility For many employers, providing more than two or three health insurance plans and a full suite of other benefit programs is not a practical option due to the administrative burden or the number of covered employees (many plans require a minimum of 10 employees). The AGC Alternative’s built-in cost efficiencies and self-administered enrollment process make it possible to provide employees a greater selection of health insurance plans to best suit each individual’s needs, as well as a host of industry-leading ancillary benefit programs such as dental, vision, life, disability, and legal service coverage. Employees can shop for and enroll in a health insurance plan via The AGC Alternative’s user-friendly, web-based technology or with the assistance of a professional insurance broker through our dedicated employee support hotline. More options (with employee choice on how to spend their contributed dollars) mean employees are getting a benefit program tailored to meet their needs rather than a one-or two-size fits all approach. Ensure ACA Compliance We’ve taken the guess-work out of whether you are providing your employees the proper coverage under the Affordable Care Act (ACA). Every plan offered through the AGC private insurance exchange meets the minimum standards of the ACA. Plus, Willis specialists are available to provide member firms additional consulting and brokerage support as needed. Discover how The AGC Alternative can help your company build a better benefits package — one that benefits you and your employees. n * Discounts for health insurance vary by number of employees participating in your organization’s plan. Contact an AGC Alternative representative for more details. ISSUE 2 | 2015 39
B. Pietrini & Sons, Inc. C.H. Schwertner & Son, Inc. E.P. Guidi, Inc. Josam Company Mann J Finley R Inc. Philadelphia D&M
Bittenbender Construction Company, LP
CRB Builders, LLC
Clemens Construction, Inc.
Component Assembly Systems, Inc. Frank T. Lutter, Inc.
Lamarra Construction
Haverstick-Borthwick Company
Commercial Construction, Inc.
Dale Construction, LLC
Gilbane Building Company
Frank V. Radomski & Sons, Inc.
C. Erickson & Sons, Inc.
Torcon, Inc.
James J. Clearkin, Inc.
P. Agnes, Inc. HSC Builders & Construction Managers
Hagen Construction, Inc.
Lorenzon Brothers Co. T.N. Ward Company
L.F. Driscoll Company, LLC Murphy Quigley Company, Inc.
Northwood Construction Company, Inc. Shoemaker Construction Co. PJ Dick Madison Concrete Construction Nurminen Construction Corporation Turner Construction Company
R.S. Cook & Associates, Inc.
Stepnowski Bros, Inc.
Celebrating our past. Building the future.
Excellence is Building. The Philadelphia skyline is one of the most dynamic and exciting urban landscapes in America, due in no small measure to the men and women who work for the member companies of the General Building Contractors Association. Now in our 125th year, GBCA is more than just a proven advocate and industry leader for safety and education. GBCA is — The Standard of Building Excellence.
Become a member. Learn what we’re doing. See what we’ve accomplished. Build your future.
gbca.com 40 CONSTRUCTION TODAY
theGBCA
@GBCA
#ChooseGBCA
THE GBCA PAC & AGC PAC NEED YOU Issues that affect one contractor, affect all. Political Action Committees’ Legislative actions have a major impact on the construction business. And since nearly every aspect of our economic and professional lives is impacted by local, state, and federal governments, the need for us to participate effectively in the political process is crucial. The General Building Contractors Association (GBCA) works hard to develop both action and contributions to show the strength of our voice in government. It is important to elect legislators willing to listen objectively to our concerns, understand them and act accordingly. Our opponents on important business issues are powerful. They often spend large sums of money to elect candidates who do not share our values and concerns and will fight our efforts to protect the construction industry. “If you’re not at the table, you’re on the menu” Through a series of political action committees (PACs), the GBCA and AGC provide local, state, and national support for races important to GBCA members across the city, commonwealth, and country. Maintaining strong PACs demonstrates that we have a strong grassroots network, effective leadership, and a committed membership. With that in mind, there are three specific PACs that are supported by GBCA members. Local and State: The General Building Contractors Association PAC (GBCA PAC) is a fund of voluntary personal contributions from our members. The GBCA PAC represents the individuals in GBCA who join together by giving financial support to provide a strong, collective voice on local issues. A portion of the GBCA PAC fund is used to support the General Contractors Association of Pennsylvania (GCAP) PAC. The GCAP PAC represents a collective voice on state issues. Federal: The Associated General Contractors of America Political Action Committee (AGC PAC) gives GBCA members a collective voice in the election of federal officeholders. AGC PAC advances the legislative priorities of the GBCA by helping to elect the candidates most likely to support those priorities. The Associated General Contractors of America (AGC) PAC collects voluntary personal contributions from concerned members for use in making political contributions to candidates for the U.S. Senate and U.S. House of Representatives.
Frequently Asked Questions (FAQs) Isn’t This Merely Buying Politicians’ Votes? Absolutely not! Most candidates and officeholders are honorable people whose votes are not for sale. If they are going to be in a position to listen to our concerns, however, they must first get elected, and that is an expensive process. Those who receive PAC contributions are made aware that the contribution is from a constituent group of contractors and their associates — constituents who recognize their common interest in many public policy issues that affect their lives. How Much Should I Give? That is up to you. Contribution levels range from $10.00 to $5,000.00. It is a personal decision and you should contribute what you are comfortable with. All contributions are useful and welcome. When Is the Best Time To Give? Now! Contributions are invited and accepted throughout the year. May I Use Company Funds? No. Law requires that all contributions to candidates be made by personal funds. Corporate contributions are forbidden. How Much Are PACs Allowed To Contribute To A Candidate? PACs can give $5,000 to a candidate committee per election (primary, general or special). They can also give up to $15,000 annually to any national party committee, and $5,000 annually to any other PAC. How Can I Contribute? Contributions can be made online any time at www.gbca.com/advocacy/ gbca-pac-contribution-form or you can contribute by mail by sending a personal check to “GBCA PAC” 36 S. 18th Street, Philadelphia, PA 19103. n ISSUE 2 | 2015 41
DOCUMENT MANAGEMENT / ADVANCED SCANNING What’s the best way to build success? It’s not always clear how to build your business plan to withstand a changing marketplace. Which projects should you take on? How can you plan effectively for the future? And what assistance do you need today to reach your future financial goals? To plan your strategy, you need an advisor who really knows the construction business...and knows you. Who can deliver tailored solutions that create opportunities, maximize efficiency and help your bottom line. EisnerAmper is that advisor. We roll up our sleeves to get to the bottom of your toughest challenges, so you get the advice and strategies you need to create sustainable growth. Learn more at EisnerAmper.com/BUILD
Let’s get down to business.® eisneramper.com 215.881.8108 gary.master@eisneramper.com
42 CONSTRUCTION TODAY
by Robert Nieradka, President, Excel Document Solutions What Google does for the internet is basically what Document Management does for the office. You can type in a few “key words” and several options appear. The same works with Document Management where you type in a few “key words” and several documents appear. Then you scroll down until you have found the document you were searching for. You, the end user, determine how specific you want those “key words” to be. They can be very general or very precise. Just keep in mind, the more precise you want, the more the “setup” charge usually will be. There are many, many vendors offering Document Management solutions. So, where do you start? Well, for starters, you can ask your network provider or if you have your own network staff, task them with finding several vendors who you may want to speak with. Or you can ask your office equipment provider. They should have some solutions for Document Management, especially if they are keeping up with all of today’s technological advances. Or do some networking yourself and ask fellow contractors, who you know have a Document Management system in place. Ask them the vendor and how well they like it and if they would recommend them to someone else. And most importantly, ask them if it is easy to use. There are many Document Management solutions out there that are “easy to use” and “cost effective”. And the old myth is that these solutions were cumbersome, meaning that you had to change the way you conduct your business to meet the way the Document Management solution worked. Also, that these packages were very expensive. But today, you can start with your current paperwork flow and get that in a solution package that meets the way you conduct your business. Then when you feel that is in place, start working on those files of paperwork in the “file room” or the room full of blueprints. Because as we all know all too well…space is money and space is limited. n
SEPTEMBER 29, 2015 LEADING STRONG TEAMS
NOVEMBER 2015 EGGS WITH OSHA
Location: GBCA, 36 South 18th Street, Philadelphia, PA 19103
Location: TBD, Suburban Location
Time: 7:30 – 8:00 am Registration, Networking & Breakfast | 8:00 – 9:30 am Program
Time: 7:30 am – 8:00 am Registration, Networking & Breakfast | 8:00 am – 10:00 am Program
Speakers: Mike Iorio, Dale Carnegie
Cost: $50 Members, $75 Non-Members, $35 CLC Members
Cost: $50 Members, $100 Non-Members, $35 CLC Members
OCTOBER 13, 20 & 27, 2015 CONSTRUCTION ACCOUNTING FOR NON-ACCOUNTANTS
NOVEMBER 5, 2015 CONSTRUCTION EXCELLENCE AWARDS
Location: CBIZ, 401 Plymouth Road, Suite 200, Plymouth Meeting, PA 19462
Time: 5:30 – 9:00 pm
Location: Hyatt at the Bellevue Cost: $125 Members, $200 Non-Members
Time: 3:00 – 6:00 pm Speakers: Tony Stagliano, CBIZ | David LaRosa, CBIZ Cost: $75 Members, $150 Non-Members (Dinner is included)
OCTOBER 14, 2015 GBCA/CARPENTER’S COMPANY JOINT MIXER Location: Carpenter’s Company, 320 Chestnut Street, Philadelphia, PA 19106 Time: 5:30 – 7:30 pm Cost: $25 for GBCA/Carpenter’s Company Members only, NO Non-Members
OCTOBER 19, 2015 EAGLES TAILGATE Location: McFadden’s Ballpark, 1 Citizens Bank Way, Philadelphia, PA 19148 Time: 4:00 – 8:00 pm
NOVEMBER 17, 2015 UNDERSTANDING CONSTRUCTORS Location: GBCA, 36 South 18th Street, Philadelphia, PA 19103 Time: 8:00 – 8:30 am Registration, Networking & Breakfast | 8:30 – 10:00 am Program Speakers: Charles Cook, R.S. Cook & Associates, Inc. | Michael Youngblut, M&T Insurance Agency Cost: Free for Members
DECEMBER 2, 2015 HOLIDAY PARTY Location: Continental Midtown, 1801 Chestnut Street, Philadelphia, PA 19103 Time: 5:00 – 7:00 pm Cost: Free for Members
Cost: $40
OCTOBER 29, 2015 DESIGN ON THE DELAWARE REFABRICATING ARCHITECTURE: 2030 & BEYOND Location: Pennsylvania Convention Center, 11th & Arch Streets, Philadelphia, PA 19107 Time: 1:00 – 2:30 pm Speakers: James Timberlake, KieranTimberlake | Emily Bittenbender, Bittenbender Construction | Douglas Carney, The Children’s Hospital of Philadelphia | John Fry, Drexel University Cost: Register through AIA (AIA/GBCA Joint Committee Partnership Event)
DECEMBER 9, 2015 3D PRINTING LUNCH & LEARN Location: NextFab, 2025 Washington Avenue, Philadelphia, PA 19146 Time: 12:00 – 12:15 pm Registration & Networking | 12:15 – 2:00 pm Program & Lunch Speakers: Walt Barger, 3D Printing Specialist, NextFab Cost: $20 Members, $30 Non-Members, $15 CLC
GBCA is now offering free OSHA10 courses for members! Check gbca.com/events for updates on dates and times of classes.
UPCOMING EVENTS
Go to gbca.com/events to register today!
ISSUE 2 | 2015 43
PHILADELPHIA’S NEXT MAYOR by Benjamin Connors, Co-Director
any competitive Democratic mayoral primary since at least 1979. Kenney’s formula for success was, in his words, the creation of a “broad and unprecedented coalition of diverse groups.”
Philadelphia, a city of over 1.5 million people, will elect its 99th mayor (125th mayorship) this November. While there are no certainties in elections, one person is heavily favored to become the next Mayor of Philadelphia: Jim Kenney. Former Councilman Kenney defied the pundits, polls and political prognosticators in the primary by entering the race late and launching a successful campaign resulting in a 30 point win over the field of candidates including early favorite, Senator Anthony Hardy Williams. Jim Kenney’s primary win represented the largest margin of victory of 44 CONSTRUCTION TODAY
Kenney, a native South Philadelphian and long-time city council member who was first elected in 1991 at 32 years of age, will go to the polls this November against Republican nominee Melissa Murray Bailey, the 36-yearold President Americas of Universum Global and relative newcomer to Philadelphia; Socialist Workers Party candidate Osborn Hart, a 63 year-old Walmart employee; and independent candidate James Foster, 72, a publisher of two community newspapers. The slate of candidates challenging Kenney will need to pull off an historic upset to beat the heavy favorite. First and foremost, Philadelphia is overwhelmingly Democratic, with Democrats outnumbering Republicans 7 to 1. Secondly, the last non-Democrat to
hold the title of Mayor of Philadelphia was Republican Bernard Samuel in 1952. In addition to Kenney’s partisan edge, he will likely benefit from a significant economic advantage. With the odds clearly in Kenney’s favor come November, we must consider, what will Kenney’s tenure as Mayor look like for the construction industry? Before the Primary election, former Councilman Jim Kenney responded to questions posed by GBCA, as well as sat down with the GBCA Board of Directors to discuss the issues facing the industry. DEVELOPMENT Q. Philadelphia ranks among the top five most expensive cities in construction costs which often times deters owners from investing in local projects. What can the next Mayor do to encourage more construction? A. Construction cost is just one factor that
impacts investment in Philadelphia. A major issue is the fact that our tax structure encourages businesses and employees to locate in the suburbs instead of the city. It is this anemic demand for commercial property space that keeps rents low and makes investing in local projects an even larger risk. I support the call for modifying uniformity that would allow us to begin to address this issue, but believe we should start exploring ways to accelerate wage and BIRT tax reductions from day one. This will help Philadelphia to be more competitive in attracting and keeping businesses in the city. We must also ensure that we are effectively using the various programs and credits available to help encourage development such as the tax abatement program and TIFs. Q. What can be done to best utilize the thousands of acres of land in Philadelphia that are vacant, abandoned and tax delinquent? A. The City of Philadelphia has historically been adequate at best when it comes to collecting taxes that are soon to be or are already delinquent. I believe that best course of action would be to focus on our most marketable tax delinquencies, and specifically those of speculators and investors who have squatted on Philadelphia properties for years without redevelopment or investment. We have to ramp up the pressure to get these properties back on the market. Marketable commercial, mixed use and industrial liens, along with marketable liens on vacant land are valued at a combined $48.5 million. Through either a securitized individual or bulk lien sale, Philadelphia could expect, at an 85% return rate, an additional $40 million in the first year of the sale. We must also use all the tools at our disposal, specifically Act 135, to get these properties into the hands of individuals looking to develop. The Act was recently expanded to allow for properties without structures to be placed into conservatorship and will prove to be an important tool in reactivating vacant land. Q. What do you consider to be potential development opportunities in Philadelphia in the near future? A. Center City has and will continue to thrive, but I believe the real development opportunities in Philadelphia lie along our neighborhood commercial corridors, particularly those with good access to public transportation. Mixed use TOD projects can have tremendous impact on neighborhoods, creating local jobs and providing opportunities for small businesses to thrive. As Mayor,
I will focus my efforts on making sure that our neighborhood corridors flourish. TAX REFORM Q. Construction is an industry with high volume and low margins making the gross receipts tax particularly onerous. A recent proposal would eliminate the net income tax and offset the revenue loss with an increase in the gross receipts tax. Do you support this idea? A. No. I believe both taxes should be ultimately be reduced, but I think it’s unfair to tax individuals based on their gross income rather than the amount of money left in their pockets once they’ve paid their cost of doing business. Ultimately, I am in favor of a change to the state constitution’s uniformity clause to allow the City to tax commercial and residential real estate differently. This will allow us to significantly reduce business and wage taxes, or eliminate them totally. PROPERTY TAX ABATEMENT Q. What is your position regarding retention of the 10 year real estate tax abatement on construction in the city? A. I believe the 10 year tax abatement should be retained. The concept of targeted, longer tax abatements for certain neighborhoods is interesting, but should only be talked about as part of a more holistic approach to neighborhood and community development. My goals as Mayor will be to strengthen every neighborhood by providing quality schools and economic opportunities. L&I GOVERNANCE Q. Recently City Council President Clarke proposed a City Charter change to restructure the Department of Licensing and Inspections and create a new department to oversee planning and development. Do you support such a change? If so why? If not, why? A. As Mayor, I will work with the Council President to address the root of the problem he is trying to address with this charter amendment — lack of communications between Council and the Mayor’s Office. I have worked with three mayoral administrations during my time on City Council, and have seen that a strong managing director is vital in creating that line of communication and ensuring that the day-to-day operations of departments like L&I are running smoothly. Under the Home Rule Charter the Managing Director is responsible for supervising all service departments, ensuring that a senior administration official is focused on the dayto-day accessibility issues of government
and that the Mayor is able to focus on the larger leadership of the city. In the Kenney Administration, the Managing Director will be the Chief Operating Officer for the City of Philadelphia, ensuring that all departments are operating effectively and efficiently, and implementing the Mayor’s vision and goals for Philadelphia. Additionally, I do believe that licensing should be separate from inspections. Licensing is an economic development issue, inspections are a life safety issue. We must look at inspections in a different way. My concern with the proposed charter change is where it places the safety functions of the department. Q. Do you support the Controller’s recent recommendation to double the number of L&I inspectors? A. Yes. Our inspectors are overworked and cannot possibly keep up with the number of open permits they are tasked with every day. In addition to more inspectors, I would like to include other City departments, such as the Fire Department, into the building safety apparatus. These workers would not conduct building inspections, but they have a keen eye for unsafe conditions and can work concurrently with L&I to ensure that construction and demolition are being done safely. CITY CONTRACTS Q. Many of GBCA’s members do not bid on public works construction projects, as there are too many regulations. Lack of competition drives up the price the City pays for these projects. What would you do, if anything, to encourage more contractors to participate? A. The City of Philadelphia is a four billion dollar enterprise that consumes a billion dollars in goods and services every year. As Mayor, I will modernize our procurement methods, making the distribution of city contracts a more transparent and accessible process for both the public and local businesses. As part of our procurement reforms, we must do a better job engaging with potential bidders to make sure that we are providing the assistance needed to help meet any regulatory demands. Taxpayers shouldn’t pay a higher price for goods and services because our city government doesn’t know how to communicate. As Mayor, I would work with contractors through GBCA to identify the regulations that are the biggest deterrent to bidding activity and work to identify less onerous ways to ensure that the goal of that regulation is being met so that a broader group of contractors bids on projects. n ISSUE 2 | 2015 45
Don’t miss our latest news @ACEMentorEPA
Volunteer to be a Mentor Contribute your knowledge. Make a difference.
Contractor & sub-contractor mentors always needed. Apply now for 2015-2016 school year. Contact Tiffany Millner, AIA, NOMA | ACE Eastern PA Affiliate Director easternpa@acementor.org | 215.820.8929
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VOLUNTEER WITH THE
ACE MENTOR PROGRAM ACE NEEDS THE SUPPORT OF THE CONTRACTOR AND SUB-CONTRACTOR COMMUNITY The national non-profit ACE (Architects, Constructors, Engineers) Mentor Program engages, excites, and enlightens high school students to pursue careers in the integrated construction industry through mentoring, and supports their continued advancement in the industry through scholarships and grants. Students are recruited from public and private schools, with special efforts made to reach traditionally underrepresented women and minorities. The ACE Mentor Program operates 64 affiliates covering 34 states and over 200 cities. In 2015, over 8,000 students and almost 5,000 mentors participated in the program; 70 percent are minorities and 40 percent are young women. Over $14 million in scholarships have been awarded. Countless young lives have been positively affected. Students work in teams led by volunteer mentors representing owners, architects, engineers, construction managers, contractors, and sub-contractors. From November until May, teams meet bi-weekly after school to experience the entire design process from all perspectives. Teams visit offices, take field trips to construction sites, and gather to present their projects to assembled mentors, family, and friends, much as an actual design team presents to clients. The ACE Eastern Pennsylvania Affiliate reaches students in greater Philadelphia. For the 2014-2015 school year, the local chapter had 14 teams including students from 35 schools in the city and Pennsylvania suburbs. At the annual scholarship breakfast held May 14, 2015, the chapter distributed 13 scholarships totaling $60,000.
MENTOR FEEDBACK IS OVERWHELMINGLY POSITIVE: “ Being part of ACE is extremely fulfilling and rewarding watching students grow as they build self-esteem and understand the many aspects of ACE careers.” Marie H. Wright Safety Manager, Worth & Company, Inc. (ACE Mentor)
“ The greatest reward of being part of the ACE Mentor program is the return on your investment of time in students who meet and exceed their potential.” Steve Cromity, Jr., Assoc. AIA, MPA Architectural Representative, Daltile | Philadelphia Region (ACE Mentor / Board Member)
“ It has been a rewarding experience to work with the students as they start to understand the process of creating our built environment, especially for those who realize they want to continue learning about the industry after they graduate high school.” David S. Urffer, AIA Principal, JKR Partners, LLC (ACE Mentor / Board member)
“ Today’s ACE student will be tomorrow’s engineer, architect, or construction professional. These students will soon become peers in our industry. Stronger students make stronger professionals, who help my industry succeed.” Branden V. Grove, CCA, PMP Consulting Manager, Talson Solutions, LLC (ACE Mentor / Board Member)
To continue to impact young lives and the future design and construction industry, ACE needs volunteers, especially contractors and sub-contractors. Teams are conveniently located in the city and suburbs — find one close to your home or office. Mentors are encouraged, but not required, to attend all 10-12 meetings per year. n
“ Being a part of the ACE program is gratifying in a many ways. It provides you with the platform to serve, give back to the community, and the professional relationships you build with your peers through this program are just priceless.”
To get involved, visit http://www.acementor.org or contact ACE Eastern Pennsylvania Affiliate Director Tiffany Millner, AIA, NOMA, at 215-820-8929 or easternpa@acementor.org.
Kwabena Addo-Boateng, PE, LEED AP, Senior Staff Engineer, LANGAN (ACE Mentor / Board Member)
“ Through ACE, the students are exposed to ideas and practices that impact their daily lives, such as how a building goes from idea to finished project. It is rewarding to me personally to explain to students why certain things are taught in high school and college and to show that they are both useful and helpful later in life.” Christian J. Kronenwetter, PE Project Manager, Keast & Hood (ACE Mentor) ISSUE 2 | 2015 47
LEADING STRONG
TEAMS by Angela Louro, Manager, Education & Professional Development Leadership development is one of the most widely recognized strengths of a well-run, successful firm. Being an effective leader of a team requires the capacity to make the most of different personalities, skills, and capabilities. Leaders must be able to analyze and capitalize on team strengths, work with diverse styles, and create a competitive spirit that builds cooperation. Successful leaders seem to naturally develop strong teams wherever they go, no matter the task at hand. GBCA has teamed up with the folks at Dale Carnegie Training to provide a leadership development course on September 29, 2015 called Leading Strong Teams. Participants of this workshop will analyze how leaders take the individual strengths of their team members and turn those into team assets. Looking at the challenges of leading a strong team and specific ways to handle issues that arise when leading talented individuals leads to a more committed team effort. The ability to organize tasks, people, and resources to deliver a product or service more efficiently, and drive business results by aligning vision, mission and values, will help to enhance your business’ value and assist you in becoming a better leader. At the end of the workshop, participants will be able to: • Establish continuous improvement by building on the characteristics of strong teams • Capitalize on individual strengths to take teams to higher levels of performance • Facilitate the interaction of diverse personalities on strong teams • Leverage competitive spirit to gain cooperation This class has limited space and will fill up fast, so register today at www.gbca.com/events to join GBCA and Dale Carnegie on September 29, 2015 for our program, “Leading Strong Teams!” n
48 CONSTRUCTION TODAY
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ISSUE 2 | 2015 49
MYTHS AND FACTS ABOUT
SOCIAL SECURITY by Jim Hiles, Partner, Cantor Fitzgerald MYTH: SOCIAL SECURITY WILL PROVIDE MOST OF THE INCOME YOU NEED IN RETIREMENT.
MYTH: SOCIAL SECURITY IS ONLY A RETIREMENT PROGRAM.
Fact: It’s likely that Social Security will provide a smaller portion of retirement income than you expect.
Fact: Social Security also offers disability and survivor’s benefits.
There’s no doubt about it — Social Security is an important source of retirement income for most Americans. According to the Social Security Administration, more than nine out of ten individuals age 65 and older receive Social Security benefits. But it may be unwise to rely too heavily on Social Security, because to keep the system solvent, some changes will have to be made to it. The younger and wealthier you are, the more likely these changes will affect you. But whether retirement is years away or just around the corner, keep in mind that Social Security was never meant to be the sole source of income for retirees. As President Dwight D. Eisenhower said, “The system is not intended as a substitute for private savings, pension plans, and insurance protection. It is, rather, intended as the foundation upon which these other forms of protection can be soundly built.” No matter what the future holds for Social Security, focus on saving as much for retirement as possible. You can do so by contributing to tax-deferred vehicles such as IRAs, 401(k)s, and other employersponsored plans, and by investing in stocks, bonds, and mutual funds. When combined with your future Social Security benefits, your retirement savings and pension benefits can help ensure that you’ll have enough income to see you through retirement.
With all the focus on retirement benefits, it’s easy to overlook the fact that Social Security also offers protection against long-term disability. And when you receive retirement or disability benefits, your family members may be eligible to receive benefits, too. Another valuable source of support for your family is Social Security survivor’s insurance. If you were to die, certain members of your family, including your spouse, children, and dependent parents, may be eligible for monthly survivor’s benefits that can help replace lost income. For specific information about the benefits you and your family members may receive, visit the SSA’s website at www.socialsecurity. gov, or call 800-772-1213 if you have questions.
MAJOR SOURCES OF RETIREMENT INCOME
EARNINGS 34% SAVINGS & INVESTMENTS 11% PENSIONS 17% SOCIAL SECURITY 35% OTHER 3%
Source: Fast Facts & Figures About Social Security, 2014, Social Security Administration 50 CONSTRUCTION TODAY
Fact: Money you earn after you retire will only affect your Social Security benefit if you’re under full retirement age. Once you reach full retirement age, you can earn as much as you want without affecting your Social Security retirement benefit. But if you’re under full retirement age, any income that you earn may affect the amount of benefit you receive: • If you’re under full retirement age, $1 in benefits will be withheld for every $2 you earn above a certain annual limit. For 2015, that limit is $15,720. • In the year you reach full retirement age, $1 in benefits will be withheld for every $3 you earn above a certain annual limit until the month you reach full retirement age. If you reach full retirement age in 2015, that limit is $41,880. Even if your monthly benefit is reduced in the short term due to your earnings, you’ll receive a higher monthly benefit later. That’s because the SSA recalculates your benefit when you reach full retirement age, and omits the months in which your benefit was reduced.
MYTH: SOCIAL SECURITY BENEFITS ARE NOT TAXABLE. Fact: You may have to pay taxes on your Social Security benefits if you have other income. If the only income you had during the year was Social Security income, then your benefit generally isn’t taxable. But if you earned income during the year (either from a job or from self-employment) or had substantial investment income, then you might have to pay federal income tax on a portion of your benefit. Up to 85% of your benefit may be taxable, depending on your tax filing status (e.g., single, married filing jointly) and the total amount of income you have. For more information on this subject, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. n
ASSOCIATIONS & UNIONS Delaware Valley Masonry Institute, Inc. See our ad on page 22. General Building Contractors Association See our ad on pages 16 and 26. Laborers’ District Council See our ad on page 35.
BUILDING MATERIALS George F. Kempf Supply Co. See our ad on back cover. Fizzano Brothers Concrete Products See our ad on page 3.
CONSTRUCTION LITIGATION Cohen Seglias Pallas Greenhall & Furman PC See our ad on page 25.
EDUCATION PROGRAM ACE Mentor Program of Eastern PA See our ad on page 46.
LAW FIRMS EisnerAmper LLP See our ad on page 42. Jacoby Donner P.C. See our ad on page 46. The Graham Company See our ad on page 7.
WHAT IS YOUR FULL RETIREMENT AGE?
If you were born in:
Your full retirement age is:
1943-1954
66
1955
66 and 2 months
1956
66 and 4 months
1957
66 and 6 months
1958
66 and 8 months
1959
66 and 10 months
1960 and later
67
Note: If you were born on January 1 of any year, refer to the previous year to determine your full retirement age.
Spruce Law See our ad on page 35.
REPROGRAPHICS ARC Document Solutions See our ad on page 49. Excel Document Solutions See our ad on page 25.
SPECIALTY CONTRACTORS B. Pietrini & Sons See our ad on page 15.
REFERRAL DIRECTORY
MYTH: IF YOU EARN MONEY AFTER YOU RETIRE, YOU’LL LOSE YOUR SOCIAL SECURITY BENEFIT.
ISSUE 2 | 2015 51
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