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notes f r o m t h e p u b l i s h e r Anyone walking around Center City Philadelphia nowadays doesn’t have to look far to find a construction site. Cranes in the sky, scaffolding around existing buildings, and the sounds of earth moving equipment and other heavy machinery are hard to miss — and are a welcome sight for many. Although it is still premature to declare the recession over, the increase in construction activity during the past six months is a hopeful sign that the industry is making a comeback. And I am glad to see our member companies are beginning to catch up to the breakneck pace set by GBCA this year—as evidenced in this edition of Construction Today. Our cover story profiles the recently concluded 17th Annual Construction Excellence Awards program and is proof positive that the industry is alive and well. This year’s event was a coming out party of sorts, as industry executives gathered to celebrate the notable accomplishments of member company projects completed last year, all the while sharing stories and comparing notes about the wide assortment of projects soon to come online or already underway. It was great evening, and if you missed it, you missed a good one. But, you can catch up on everything that happened by turning to page 10. And speaking of events, there’s been no shortage of late — providing opportunities for GBCA members to engage with prominent industry leaders and policymakers with national, regional and local ties. Program headliners included former National Labor Relations Board chairman Robert Battista, OSHA regional director Nick DeJesse, and Department of Licenses and Inspections commissioner Carlton Williams, among others. Safety programming, labor policy and media relations all took center as we demonstrated on multiple occasions that GBCA and our stakeholders are at the forefront of the commercial building and construction industry. Construction Today is one of the premier industry publications, in large measure because our contributing writers are some of the brightest, well-informed and most knowledgeable experts anywhere and, as usual, we have an amazing variety of interesting and informative articles that are sure to appeal to most everyone. Features in this edition cover topics ranging from legal issues and project financing to social media and multiemployer pension reform — as well as this installment of “Contractor’s Corner” featuring Torrado Construction Co., Inc. president Luis Torrado. To be sure, there’s a lot of good reading on the following pages. My personal favorite is a story about a special person who has attained a distinctive place in GBCA folklore. Our teammate Roseann Rotz is celebrating her 30th anniversary with GBCA this year, and we’re delighted to share her story with you. In the modern-day workplace, examples of people who spend their entire lives working for the same employer are becoming increasing rare and certainly are worth writing about. Thanks, Roseann, for all your contributions to GBCA over the years and congratulations! This is our last edition before the holidays and like many of you I’m still trying to figure out where the time went this year. Nevertheless, soon we’ll be ringing in the New Year,but before we sing another chorus of Auld Lang Syne, I want to take this opportunity to thank everyone associated with GBCA for helping to make this year a success and to wish you and yours all the best during the upcoming holiday season and beyond.
ConstructionTODAY
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PUBLISHER Steven S. Lakin EDITOR Melissa Wyatt ADVERTISING/SALES Melissa Wyatt CONTRIBUTING WRITERS Meghan Claiborne / Jim Hiles / Rick Lowe Joseph M. Martosella / A. Peter Prinsen Amanda Gibney Weko DESIGN Suzanne Guelli ACCOUNTING Michelle Pinto EDITORIAL OFFICE General Building Contractors Assn., Inc. 36 South 18th Street Philadelphia, PA 19103 P: 215.568.7015 F: 215.568.3115 4 ConstructionTODAY
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Content
FA l l 2 0 1 4
10
16
38
ON TOPIC
COVER 10 17th Annual Construction
28 Independent Contractor
Excellence Awards
Classification: The New Potential Employment Law Minefield
The Awards go to‌
30 Preventing the Collapse
features
of the Multiemployer Pension System: The Time to Act is Now
16 17th Annual Construction Excellence Awards Reception
24
Members and Industry Professionals Gather to Celebrate Accomplishments
18 Eggs with OSHA
Inaugural Breakfast Meeting
19 Panel on Demolition Ordinances 20 Membership Dinner
21 Contractor’s Corner Featuring Luis Torrado
22 Honoring Roseann Rotz
In Every Issue 8 Contributing Writers 38 Construction Notes 50 Referral Directory
32 Builder Beware:
Your Guide to Addressing Employee Social Media Use
34 Safety First 35 Torcon Earns OSHA VPP Star Mobile Workforce Recognition
36 U.S. Targets Low-Cost
Capital from Immigrants Seeking Permanent Residency
24 Dilworth Park Hard Hat Tour With Dan Lepore & Sons
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Contributors Don Ashton, as Director of Safety Services, WSO-CSM (World Safety Organization—Certified Safety Manager) has more than 30 years experience in the fields of safety, loss control, and risk management, specializing in construction, marine construction, longshore and marine terminals.
Eric B. Meyer is a partner in the Labor and Employment Group of the Philadelphia-based law firm Dilworth Paxson LLP. He focuses his practice on employment discrimination and retaliation, workplace harassment, employee pay practices, leaves of absence, disabilities and reasonable accommodations, non-competition and trade secret disputes, employment contracts, reductions in force, severance arrangements, and other contractual matters, union/management relations and collective bargaining.
Gregory Byrnes is Senior Advisor
Daniel Miles, Ph.D. is a Director at Econsult Solutions, Inc. (ESI). At ESI, Dr. Miles leads economic analyses across a variety of sectors and industries, including for EB5 applications nationwide.
at Econsult Solutions, Inc. (ESI) and is a nationally recognized leader in the field of economic development. His career spans 35 years as a journalist, economic development professional, entrepreneur and consultant.
Andrew Howe concentrates his practice in labor and employment matters as well as commercial litigation. Prior to joining Spruce Law, he was a founding partner of a regional firm focused in employment and litigation matters and, before then, practiced law in a global Am Law 100 firm based in Philadelphia. He regularly counsels a diverse client base of corporations ranging from 20 to more than 8,000 employees, in union and non-union settings, and on a local, national, and international level.
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Stacey C. Schor, is an associate in the
Labor and Employment Group of the Philadelphia-based law firm Dilworth Paxson LLP. She focuses her practice on traditional labor-management relations involving collective bargaining, grievance arbitrations, and unfair labor practices. She regularly advises clients on a wide range of issues including personnel matters, civil service compliance and charges under the Pennsylvania Labor Relations Act, Act 111, Act 195, the Pennsylvania Human Relations Act, as well as Title VII, the FMLA, the ADA, and the ADEA.
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COVER
17th Annual Construction Excellence Awards
Radisson Blu Warwick Hotel Lobby— Clemens Construction, Inc.
10 ConstructionTODAY
On Thursday, October 30th, members and industry professionals gathered to celebrate the 17th Annual Construction Excellence Awards, the premier construction awards program that recognizes excellence in construction and safety. This spectacular event was held at last year’s winner of the Best Industrial/Institutional Project under $10 million, the Hamilton Garden at the Kimmel Center for Performing Arts, constructed by Haverstick-Borthwick Company. The Excellence Awards Program is dedicated to creating a greater awareness throughout the region of the quality workmanship produced by GBCA member companies. The Building Awards recognize general contractor and subcontractor firms who have excelled in construction projects throughout the region. The categories are designed to highlight both large and small projects in a variety of areas, including commercial construction, industrial/institutional construction, historic preservation, sustainable projects, and design build. The Safety Excellence Award recognizes a general contractor and/or subcontractor who has been successful at promoting safety within the company and throughout the industry. After a rigorous judging process, the awards go to:
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COVER
17th Annual Construction Excellence Awards • WINNERS
Best Commercial Project Over $10 Million
Best Commercial Project Under $10 Million
T. N. Ward Company Southstar Lofts Architect: JKR Partners, LLC Owner: Dranoff Properties
Clemens Construction, Inc. Radisson Blu Warwick Hotel—Lobby Renovation Architect: Tackett and Company, Inc. Owner: AP/RAD Venture, LP
Best INDUSTRIAL/INSTITUTIONAL PROJECT Over $10 Million
Best INDUSTRIAL/INSTITUTIONAL PROJECT UNDER $10 Million
LF Driscoll, Co., LLC Temple University—Mitchell & Hilarie Morgan Hall Architect: MGA Partners Architects Owner: Temple University Temple University/ AEGIS Property Group
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C. Erickson & Sons, Inc. Thomas Jefferson University OB/GYN Architect: AthenianRazak LLC Owner: Thomas Jefferson University Hospital – Jefferson University Physicians and Stantec
Best historic preservation
Best adaptive Reuse
Haverstick-Borthwick Company The Sir John Templeton Veranda Architect: Mark B. Thompson Associates Owner: The College of Physicians of Philadelphia
T.N. Ward Company Merrick Hall Architect: Jacob Wyper Architects LLC. Owner: Northern Children’s Services
Best specialty contractor
Excellence in Craftsmanship
Healy, Long and Jevin, Inc. Urban Outfitters—Building 18 Architect: Meyer Scherer & Rockcastle, LTD Owner: Urban Outfitters
C. Erickson & Sons, Inc. Ballard Spahr—Philadelphia Office Architect: Francis Cauffman Owner: Ballard Spahr LLP
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COVER
17th Annual Construction Excellence Awards • WINNERS
BEST Green Building ProjecT
Torcon, Inc. Transforming the Villanova Campus Landscape Architect: Mark B. Thompson Associates Owner: Villanova University
THANKS PRESENTING SPONSOR LF Driscoll Co., LLC
BAR SPONSOR Clemens Construction Co., Inc. Dinner Sponsor C. Erickson & Sons, Inc. Textura Corporation Entertainment Sponsors AIA Philadelphia Torcon, Inc. PATRON Sponsors Construction Risk Partners Excel Documents Solutions, Inc. HSC Builders & Construction Managers Rosenberg & Parker
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Safety ExcellencE
Frank V. Radomski & Sons, Inc.
TO OUR JUDGES & SPONSORS Judges Ramla Benaissa, P.h.D., AIA, LEED AP Principal Ramla Benaissa Architects Daniel Garofalo Environmental Sustainability Director University of Pennsylvania Frank Gramieri President GDS Interior Architecture Alan Kaiser Vice President Business Development and Major Transactions Counsel Commonwealth Land Title Insurance Company
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feature
17th Annual Construction Excellence Awards Reception
16 ConstructionTODAY
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feature
Eggs with OSHA Inaugural Breakfast Meeting
On Wednesday, August 20, GBCA hosted the inaugural “Eggs with OSHA” breakfast meeting at the Loew’s Hotel in Center City. This informal meeting was developed to open a dialog between OSHA and our members. The OSHA speakers were Nicholas DeJesse, the new Philadelphia Area Director, and Jim Harrity, the new Philadelphia Compliance Assistance Specialist. After brief opening remarks and an update on OSHA’s focus on Fall Protection in Construction, and Heat Illness Prevention, the floor was opened for a spirited question and answer session with the attendees. Issues ranged from employee requirement to follow safety rules to OSHA’s Voluntary Protection Program (VPP), as well as OSHA’s take on Philadelphia’s demolition ordinances, anchorage points in new construction, citation quotas (or lack thereof), and the Area Director’s discretionary ability to reduce fines and citation severity. The next planned “Eggs with OSHA” will be in the spring.
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Panel on the Philadelphia Demolition Ordinances On June 5, 2013, a building under demolition collapsed onto the Salvation Army Thrift Store at the southeast corner of 22nd and Market Streets in Philadelphia. Six people died and 14 others were injured. In response, Mayor Nutter issued an Executive Order that raised the standards for private demolitions, and called on City Council to take legistlative action. On February 6, 2014 Council passed five bills that contained 71 new regulations pertaining to demolition, which Mayor Nutter signed in law on June 7. In order to assist is its members with understanding and compliance, GBCA invited Licenses and Inspections (L & I) Commissioner Carlton Williams Sr., Development Services Executive Director Elizabeth Baldwin, and Director of Emergency Services Scott Mulderig to address the membership at a breakfast panel meeting on Tuesday, October 21, 2014. After brief introductions by Steven Lakin, President of GBCA, Mr. Williams, Ms. Baldwin, and Mr. Mulderig offered a PowerPoint presentation on the processes and structure of L & I and what demolition and construction contractors can expect in the future, including the new eCLIPSE program, L & I’s public portal, documents retention, and on-line permitting system. At the completion of the presentation the floor was opened to questions from the membership. By all accounts the meeting was extremely informative. Another meeting is planned for late winter.
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feature
Membership Dinner
On October 1st,
GBCA members gathered at Del Frisco’s Double Eagle Steakhouse for a night of networking and fine dining with featured speaker former National Labor Relations Board Chairman, Robert Battista. The exclusive networking event gave members an opportunity to meet and talk with Battista — who was on the front lines of many important decisions issued by the NLRB that govern how building contractors are required to conduct business. The decisions issued by the NLRB have a profound impact on each and every GBCA member contracting company. Battista reflected on his experiences in Washington, D.C., and shared his insights on the current board, recent and past decisions and the state of U.S. labor relations. The next membership dinner meeting will be held February 18, 2015 featuring former US Representative Robert Andrews, who will talk about pension reform efforts in Congress and how this issue directly impacts GBCA member companies.
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Contractor’s Corner What award or honor are you most proud of? Recently graduating from the 10KSB Goldman Sachs program (COHORT 2) thru The Community College of Philadelphia.
Name: Luis Torrado Title: President Age: It’s just a number but I feel like 30 Company, City: Torrado Construction Co., Inc., Philadelphia, PA Years in field: 27
What word or phrase best describes you? Relentless.
Education: CCP AAS Architectural Technology from Drexel, Construction Management from Temple Architecture School
What would be your first choice for a new career? A super hero.
Birthplace: Philadelphia
Favorite way to spend your free time? Relaxing with friends and family — cooking pizzas.
City of Residence: Philadelphia First Job: Delivering three newspaper routes in Oxford Circle “before morning class”
Favorite vacation spot? Las Vegas.
Random Fact about yourself: I enjoy cooking for others.
What is your business motto? To have integrity and work with people who have similar attributes and goals. When did you first become interested in your career path? I first became interested in construction as far back as I can remember. I grew up on Legos and building blocks, so I think it has been a while. What is the most rewarding part of your job? To see people working and helping to achieve stability in the working world. Least rewarding? Dealing with clients that have no integrity. “One and done.” What is your biggest daily challenge? To manage a difficult client and still achieve a positive result.
Favorite sports team? Phillies—there’s nothing like hanging at the ballpark. Book that has inspired you most? Who moved my cheese? Photograph by Ken Yanoviak
How do you inspire your employees? I think I inspire them by showing that I am 100 percent dedicated to them and our future. How do you keep your competitive edge in today’s market? We do what we say we’re going to do. Our numbers are fair but our commitment to the project far outweighs the cost. What goal are you currently striving to achieve? I am striving to remove the perception that a Minority Contractor is ‘too small, financially unsound, or not qualified, or experienced enough to work on a project.
What project are you currently working on? I am working for Hunter Roberts Construction Group at 1900 Market on the renovation of the Atrium. “Great people to work for too!!!”
Favorite movie or TV Show? “The World According to Garp.” Favorite restaurant? DelFriscos Steakhouse (bone-in filet). What kind of car do you drive? Cadillac SRX.
Do you have a life motto? Life, health, and family is what counts. What’s the most important lesson you’ve learned in life? Some apples are just bad apples. What is your biggest regret (professional or personal)? My biggest regret is not completing my architecture degree at Temple University. FALL 2014 21
feature
Honoring Roseann Rotz for her 30 years of service to GBCA By Melissa Wyatt, Director, Communications and Marketing
As GBCA gears up to celebrate its 125th anniversary next year, we would like to acknowledge one very important staff member celebrating her 30th anniversary with the organization — Roseann Rotz. Fresh out of high school, Roseann joined the GBCA team in 1984. Greeting our members with a smile, she first took on the roll as receptionist. “I started working here when typewriters were the latest technology! If you told me back then I’d be using a computer to email, create spreadsheets and search the internet, I’d have thought you were crazy!” As the years went by, Roseann was moved around the organization to assist where help was needed. She has served the organization in a various capacities, working her way through departments including membership, industry relations, government affairs, labor relations, education and safety, administrative support and event planning. Roseann offers a wealth of knowledge when it comes to our members’ history and often jokes that she “knows where the bodies are buried.” Over the years she has witnessed a lot of the great work accomplished by member companies as they changed the skyline of Philadelphia. When she started, William Penn stood atop City Hall as the tallest building in Philadelphia. “I watched our members build the City around us,” she remembers. “One and Two Liberty Place, the Mellon Bank Center and the other buildings along the Market Street corridor went up one by one to create the City as it is now.” In addition to seeing the growth of the City, Roseann has seen GBCA’s membership grow over the past 30 years, watching new generations take over companies and businesses passed from owners to their children. “It’s like being part of an extended family here. I’ve had the pleasure of working with multiple generations. I feel like a proud parent watching the younger generations grow into their new roles.” GBCA is proud and honored to have Roseann Rotz as a member of our team, and we congratulate her on her 30th anniversary. 22 ConstructionTODAY
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feature
“ A Stone Perspective… from Dilworth Plaza to Dilworth Park” On October 29th, members and friends of GBCA joined member company Dan Lepore & Sons for a tour of the newly renovated Dilworth Park. Greg Lepore Jr. took the group through the history of Dilworth Plaza and the steps taken to create Dilworth Park: “It was 38 years ago when Dilworth Plaza was unveiled to Philadelphia. Though looking back at the previous design, it’s fair to say that the concept was not sustainable and the model was ‘uninviting’ with its subterranean stone finishes and sunken layout. As one of the sons of a third-generation masonry company, it was hard for me to look back at this outdated design and not be proud that the previous generation had set the stones on what was Dilworth Plaza. At the time, the building material of choice was domestic granite and the masonry company that was contracted to provide and install the stone was Dan Lepore and Sons. Descendants of Italian Stone Masons, Dan Lepore and Sons was established after WWII and became one of the premier Stone Masonry contractors in the Philadelphia Area. Now, fast forward 38 years from Dilworth Plaza to the newly constructed Dilworth Park. Anyone can see that much has changed and most, if not all, changes are welcomed. Having said that, there are two constants that remain from then to now—the building stone material is still USA domestic granite (from varying sources) and the masonry company contracted to provide and install the stone is Dan Lepore and Sons. “Rather than a pitted courtyard of stone, the newly constructed park connects what once was a voided space to a new pedestrian hub for families, commuters and the like. From the varying thermal stone paving to the honed-finish bullnose stone benches, the stone elements have a much warmer embrace than its former counterparts. Though take solace in knowing that some remaining elements of the past have taken on a new light. Along the concourse level walls, the original soiled granite was repurposed into polished stone bricks for the walls. Instead of completely disaffiliating the project’s past, the reuse of the original building materials made the project unique and worthwhile. “Dilworth Park is special for many reasons. Between its sustainable design and its link to community connectivity, it’s fair to say that this job was built for the right reasons, with the right materials and with the right people.” 24 ConstructionTODAY
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WHEN IT MATTERS MOST TRUST A GBCA CONTRACTOR. The best trained, highly skilled and most trusted contractors in Philadelphia. It’s a must-have list for commercial construction
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Be Informed. Be Educated. Be Connected. 26 ConstructionTODAY
Web: gbca.com Facebook: theGBCA Twitter: @GBCA SPRING / SUMMER 2014
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ON TOPIC
Independent Contractor Classification: The New Potential Employment Law Minefield By Andrew Howe
Over the past several years, the uncertain economy and rising employment benefits costs have driven renewed interests by employers to control costs by using independent contractors. The benefits of using independent contractors are significant. Independent contractors are not entitled to overtime pay, unemployment payments, health and welfare benefits, or payroll tax withholdings, and they do not possess the right to organize or be part of a union. However, state and federal regulators have responded with increased scrutiny over the use—and potential abuse—of independent contractors in the workplace. Adding to the potential risks for employers, an increased number of lawsuits have been filed by former and current employees seeking damages for alleged misclassification of workers as independent contractors. The issue reared its head in an ongoing case currently taking place in Philadelphia in the United States District Court for the Eastern District of Pennsylvania, entitled Verma v. 3001 Castor Inc. d/b/a The Penthouse Club. The Honorable Anita B. Brody addressed the issue of whether exotic dancers at Philadelphia’s Penthouse Club were properly classified as independent contractors under federal and state law. Finding that club managers controlled the pricing structures, the dance schedules, and other job guidelines, the Court found that the facts tended to show that the club exercised enough “control” over the dancers so that their proper classification was as “employees,” not as independent contractors. The Verma case highlights the broad reach of these employee classification laws and the aggressive litigation tactics people classified as independent contractors are using to obtain damages for violations of misclassified independent contractors. Unfortunately, creating and maintaining independent contractor relationships in the workplace has become increasingly difficult with enhanced regulatory oversight and scrutiny by federal and state governments. Governments argue they seek to protect the “misclassified worker,” but regulators are primarily
28 ConstructionTODAY
attempting to recoup lost tax dollars and responding to unions concerned about the increased use of independent contractors. So what specific laws can be violated by misclassification of a worker as an independent contractor? At the federal level, the laws include the Fair Labor Standards Act (governing minimum wage and overtime); the National Labor Relations Act (governing workers rights to organize and engage in concerted activity); the Affordable Care Act (addressing penalties for “large employers” that misclassify workers and do not offer minimum health insurance coverage); and the Internal Revenue Service Tax Code (addressing employment tax). At the state level laws include requiring payment of minimum wage and overtime; unemployment insurance laws; workers compensation insurance laws, and applicable tax laws. What are the consequences under these state and federal laws if an employer improperly (willfully or not) misclassifies a worker as an independent contractor? The consequences are potentially significant and include fines, back tax liability, unpaid back minimum wage or overtime payment liability and civil damages under state and federal law resulting from private lawsuits brought on behalf of the misclassified employee or employees, including but not limited to attorneys fees (which can be significant). So how do employers know if they have properly classified workers as independent contractors? That answer is not always clear. The tests courts and regulatory agencies apply to determine whether a worker is properly classified changes depending on the applicable state or federal law. Thus, what might satisfy the IRS might not satisfy the Department of Labor. Some tests are relatively simple (applying three criteria) and others complex (applying 20 criteria). There are some standard criteria, however, that are considered by all state and federal agencies enforcing these laws (and by courts, if it is a private lawsuit). Specifically, the issue of “control” is a significant issue, which is consistent with reasoning in the Verna case. How and to
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what extent is the independent contractor controlled? Are the contractor’s hours controlled; method of doing work controlled; who controls whether the contractor makes a profit or loss? These are all control factors. Additionally, the issue of “economic realities” is often considered. Other factors are how integral the work conducted by the independent contractor is to the employer’s business, and how permanent the relationship is between the worker and the employer. Further, whether the independent contractor does work for others in addition to the employer at issue or just for one employer is considered. While the risks of not complying with the applicable laws regarding independent contractors could be significant, employers can take proactive steps to shield themselves from scrutiny and lawsuits by taking a detailed audit of their labor relationships. Some of the items a thorough audit should investigate are as follows: • Whether there are written independent contractor agreements with these individuals; • Whether these individuals have their own worker’s compensation and other insurances; • Whether these individuals control their own hours and bring their own tools; • Whether these individuals work independently or receive significant direction from the company; are these individuals separately incorporated or have they formed a legal entity that contracts with you; and • Whether these individuals do work for others. While the foregoing list is not exhaustive, it is a good start. In the end, a properly established independent contractor relationship can be beneficial for all parties—but only if the relationship is properly managed to avoid risk.
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FALL 2014 29
ON TOPIC
Preventing the Collapse of the Multiemployer Pension System By Benjamin J. Connors, Esq., Director, Government Relations
For generations, multiemployer pension plans have served union construction employers and workers. These plans have helped to secure a competitive advantage for our industry by giving union contractors access to highly skilled workers who have portable retirement security. Today, multiemployer defined benefit plans are the primary source of retirement income for over 10 million active, inactive and retired workers. These workers and their survivors’ plans represent approximately $450 billion in assets, making them one of the largest sources of investment capital in the U.S. economy. Today, some of those very same pension plans that once helped to build our industry are now failing, causing a threat to not just multiemployer pension plans, but to the stability of the American economy. How did this happen? After the passage of the Employee Retirement Income Security Act (ERISA) and the implementation of the Multiemployer Pension Plan Amendments Act of 1980 (MPPAA), federal regulations began to tighten and tougher anti-cutback requirements were imposed, making it more difficult for plan trustees to respond to ever-changing economic conditions. In addition to a less favorable regulatory environment, many trades saw their ratio of retirees to active workers shift, leaving fewer active workers to support the plans growing retirement population. Then the Great Recession of 2008 hit and plummeted nearly a quarter of all multiemployer pension plans into “critical” status. It is expected that nearly a quarter of those in critical status will face insolvency within the next 10 to 20 years, leaving retirees in those plans to face a future with either dramatically reduced benefits, or in some cases no benefits at all. The Pension Benefit Guaranty Corporation (PBGC), which serves as a backstop for those plans that become insolvent, currently has liabilities of $8.3 billion and could face insolvency itself within the next five years. That risk of insolvency increases dramatically to over 50 percent in 2022, when it is projected PBGC’s deficit will reach $50 billion. A June 2014 PBGC report found that PBGC could exhaust its multiemployer fund completely as early as 2021, causing a drastic and immediate cut in benefits to plan participants. By way of example, a participant who retired at age 65 with 35 years of service would see their benefits cut from $2,000 per month down to $1,251,
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the PBGC new maximum. This “guaranteed amount” under the PBGC would fall to zero if PBGC exhausts its funds, which is projected to occur within the next 10 years. A collapse of the multiemployer pension system would not just have a devastating impact on plan participants; multiemployer pension plans hold nearly $450 billion in assets and play a significant role in creating much broader economic activity. A widespread failure of the multiemployer pension system would wreak havoc on the fragile economy. Additionally, approximately 5 million people are being kept above the poverty line today because of these plans. Without the combined benefit of private pension plans and Social Security, the amount of public expenditure would have to double to care for the elderly. This significant cost would undoubtedly be felt by not just the construction industry but by the entire American economy. Unfortunately, in today’s regulatory environment, many plans will not be able to just “earn” their way out of their current deficiencies by relying on increased investment returns. Under current law, plan trustees only have two options to address their plan’s unfunded liability: cut the costs of future benefit accruals or increase the contribution rate. The latter option would result in employers becoming even less competitive in an already tightening market. What’s more, Congress has made it clear that there is no “bailout” in store to protect the private multiemployer pension system, despite the fact that the U.S. Government provided enormous financial relief to the financial services industry, the culprit whose actions resulted in the depletion of the pension funds’ assets in the first place. Solutions Not Bailouts
So what can be done to avoid the collapse of the multiemployer pension system? Currently, Congress is considering a plan developed by the National Coordinating Committee for Multiemployer Plans (NCCMP). This plan proposes a broad set of additional tools designed to strengthen the existing system, provide remedies to “deeply troubled” plans and create alternative designs which reduce or eliminate the financial disincentives that cause current contributing employers to exit the system and discourage new ones from entering. NCCMP has titled this plan “Solutions Not Bailouts.” The plan calls for
giving trustees the flexibility they need to address their individual plans’ issues. Any proposed plan changes under “Solutions Not Bailouts” would only go into place if both labor and management mutually agree, and could only be adopted if the results would ensure a materially better outcome for worker and retirees than what would result from insolvency. “ Solutions Not Bailouts” focuses on three primary areas of action:
1. Preservation: Proposals to Strengthen the Current System For plans currently in place that do not face imminent insolvency, a series of options would be made available if the plan either managed to weather the economic recession, is on the path to recovery or, with expanded access to measures provided in the Pension Protection Act and subsequent relief legislation, would be able to achieve their statutorily mandated funding goals. 2. Remediation: Measures to Assist Deeply Troubled Plans For the relatively small but significant number of deeply troubled plans that are projected to become insolvent, additional authorities would be granted to plan trustees to preserve retirement security for plan participants. These authorities could be used to take early corrective action, including partial suspension of accrued benefits for active and inactive vested participants and the partial suspension of benefits in pay status for retirees. These suspensions would be limited as necessary to prevent insolvency but would always maintain benefit levels at least 10 percent greater than that of the PBGC guaranteed amounts. 3. I nnovation: New Structures to Foster Innovative Plan Designs These designs would provide secure retirement income for participants, while significantly reducing or eliminating the financial exposure to contributing employers. Variable annuity and target benefit plans are two examples of plans that could be made available to participants. Should Congress enact the recommendations in “Solutions Not Bailouts,” the projected $50 billion deficit could be cut in half almost immediately while giving plan trustees the tools needed to put their pension plans on track for economic health.
While early indications are that the proposals in “Solutions Not Bailouts” are gaining traction in Congress and may have a chance to be voted on as early as the lame duck session this fall, multiemployer pension reform still faces serious challenges from both sides of the aisle. Democrats are gun shy when it comes to voting for anything that may be viewed as cutting benefits for workers while Republicans do not want to support a bill that could be miscast as a “Union Bailout.” Therefore, it is important to convey to members of Congress now, before time runs out, that “Solutions Not Bailouts” is neither a mandated cut to employee benefits nor a bailout for the Unions. The aptly titled “Solution” simply provides industry with the tools necessary to allow it to fix itself while protecting workers’ retirement benefits through collective bargaining. While the construction industry did not create the situation we now face, namely tightening federal regulations and a reckless financial services industry, we can fix it with prompt action. With the PPA expiring at the end of 2014, the clock still counting down to insolvency on a number of the larger funds and with it PBGC’s potential insolvency, the time to act is now. There are two steps that anyone concerned about the stability of the multiemployer pension system and the strength of the American economy should consider: 1) Congress relies on us to educate them and if we do not define the issues that matter most, someone else will. Go to the GBCA Advocacy page at www.GBCA.com and click “Take Action.” From there you can send a personalized email to members of Congress to let them know that pension reform has to happen now before it is too late. 2) Your voice in Congress is amplified by our membership in the Associated General Contractors of America (AGC). AGC represents your interests year round in Washington, and has been at the forefront of the multiemployer pension reform debate. AGC’s Political Action Committee (PAC) needs our help in their final push for pension reform. For more information on how to support AGC’s PAC in their efforts in Washington, contact Ben Connors at bconnors@gbca.com. With so much on the line for our industry and our economy, the time to act is now. The only question is, will you?
FALL 2014 31
ON TOPIC
Builder Beware: Your Guide to Addressing Employee Social Media Use By Stacey C. Schor and Eric B. Meyer
With a few taps of a keyboard, social media provides your employees with access to millions. An employee who used to call a friend to complain about her boss instead chooses to post on Facebook, where it is broadcasted to her entire network and permanently embedded on the internet. Another employee snaps a photo of confidential information and posts it on Instagram with a funny comment. But, it’s not so funny when your confidential information is available for public consumption with no way to silo it. Indeed, the ramifications of employee access to these forums is endless, giving employers a new wave of business risks and potential liability. We live in a social media world where your employees have 24/7 access to social media. Limit their connection? Just forget about it. But, what you can do is communicate certain expectations on employee use of social media as it may relate to your business. This article will help you do that with the construction of an effective social media policy. Federal law protects employee use of social media.
Unfortunately, developing and implementing a social media policy is not as simple as typing a few search terms into Google and printing the first policy you find. Putting aside that there is no one-size-fits all solution for your business, the likelihood of finding a legally compliant social media policy by Googling is slim. One area where many social media policies fall short is when scrutinized under the National Labor Relations Act. The National Labor Relations Act protects employees’ right to engage in “concerted activities” for the purpose of collective bargaining or other mutual aid or protection. Put simply, employees can talk amongst themselves about working conditions without worrying about the repercussions. And, naturally, unfiltered criticism becomes a springboard for employee discipline. But not all employee discipline based on social networking behavior is legal. Indeed, the trend is that most discipline is unwarranted. Enter the National Labor Relations Board, the federal agency overseeing your employees’ rights to organize and to determine whether to have unions as their bargaining representative. Even the most passive Board observers can tell you that employee use of social media has taken on more importance over the past several years. Overall, the Board has 32 ConstructionTODAY
taken a very liberal stance in extending “concerted activity” protection to discussions on social media. The Board has characterized social media as a virtual water cooler. In other words, any discussion that could lawfully occur around the water cooler may similarly ensue on social media sites without fear of reprisal. With social media offering employees a public forum exponentially larger than a few employees around the water cooler, employers have sought to restrict the types of discussions employees may have concerning their jobs. In doing so, employers have faced consistent pushback from the Board finding the social media policies to be unlawfully restricting employee rights under the Act. Recent Board decisions highlight the mistakes employers make in their social media policies.
Over the past few years the Board has struck down numerous employer policies, all of which had the potential to restrict protected speech. Although the Board has guided employers on constructing and enforcing social media policies, the fluidity of the law requires employers to constantly revise and update their policies. Ultimately, social media policies survive Board scrutiny if they do not chill employees from discussing terms and conditions of employment. Three recent cases bear this out: In May, an Administrative Law Judge addressed a social media policy that prohibited any social media posts that “negatively affects, or would tend to negatively affect, the employee’s ability to perform his or her job, the company’s reputation, or the smooth operation, goodwill or profitability of the Company’s
business.” Given its breadth, the ALJ struck down the policy for failing to provide sufficient guidance on the rule’s application, and for its likelihood to cause employees to reasonably believe that concerted activity was being prohibited. Specifically, the ALJ criticized the employer’s failure to define certain terms in its policy. However, the ALJ also offered a solution: a restriction applying only to conduct that did not support the employer’s “goals and objectives” may be allowed (but the employer’s failure to include such language was fatal to surviving review).
that the employer does not intend to interfere with any rights proscribed by the Act, policies may include examples of activities that would subject employees to discipline. Lawful restrictions include threats of violence, obscene, racist or otherwise discriminatory remarks, rumors or disparaging statements about the employer that the employee has reason to know is false, or disclosure of proprietary, financial or other confidential business information belonging to the employer that does not relate to terms and conditions of employment.
In June, a Board ALJ issued a rare but encouraging decision for employers seeking to enforce effective social media policies. The policy at issue urged employees to refrain from posting information regarding the company, their jobs, or other employees which could lead to morale issues in the workplace or detrimentally affect the company’s business. It continued to list specific examples of how employees could comply with the policy, including “thinking before you post, being civil to others and their opinions, and not posting personal information about others unless you have received their permission.” In upholding the policy, the ALJ noted that the social media policy at issue did not prohibit posting of specific protected information, such as that related to personnel, payroll or wages, but instead urged civility and respect during employees’ discussions. Significantly, what allowed this policy to withstand scrutiny was the language explaining how employees could accomplish the goals of the policy.
2. Y ou may not broadly prohibit criticism about the company, but you may limit the manner in which those posts are articulated. Encouraging civility and respect in employees’ posts and providing examples of how to do so may allow employers to lawfully regulate the information being publicly posted about the company. Additionally, consider reminding employees that problems with the company are best resolved by addressing them directly with a supervisor or other responsible individual, rather than griping about them on social media.
In the Board’s most recent decision regarding social media policies, the employer terminated two employees because of their Facebook posts complaining about the company’s failure to withhold the proper amount of state income tax. In addition to the company’s decision to terminate the employees, the Board scrutinized the existing social media policy which provided that an employee may be subject to disciplinary action for engaging on social media in “inappropriate discussions about the company, management, and/or co-workers.” The Board found the policy to be unlawfully overbroad, as it restricted employees in any discussions about terms and conditions of employment deemed inappropriate by the employer. Finding the term “inappropriate” to be “sufficiently imprecise,” the Board held employees would reasonably understand it to encompass discussions protected by the Act. So, what should (or shouldn’t) be in your social media policy?
The foregoing decisions provide insight into the Board’s tendencies and offer guiding principles employers should adhere to while reviewing or drafting social media policies. 1. Define terms and concepts so that a reasonable employee could not misinterpret a provision as restricting concerted activity. Subjective terms and standards that leave to the employee the task of discerning which conduct is permissible should be avoided. In addition to adding language explicitly affirming
3. I mplement internal practices that will ensure compliance with the continually evolving law. Implement or revise social media policies using Board guidance. The most effective policies are those using language and concepts that the Board has upheld as lawful. Review and update social media policies on a regular basis to ensure compliance with emerging precedent. As with any effective workplace policy, make sure that employees are made aware of it and provide training to those in charge of administering it (e.g., managers, human resources) on not just the policy itself, but also the current state of the law and Board trends. Proper training is crucial to reducing liability and avoiding costly mistakes. 4. T hink before you act. Employees do not have complete freedom of speech on the Internet. For example, sexual harassment via Facebook should carry the same punishment as it would if carried out on a jobsite. But many times, an appropriate response to questionable online speech is not as clear-cut. At a minimum, employers should avoid any actions against employees taken in haste and without reasonable consideration. Consult an attorney before taking any action against an employee because of social media posts. As the technology advances, so too will the law governing online speech, albeit with a noticeable lag. While the law will trail technology, so too will it develop. While the legality of social media policies are addressed by the Board on a case-to-case basis, the recent trend has been to aggressively scrutinize any adverse action taken against employees based on social media activity. If this trend continues, the key to an effective and lawful policy is identifying with clarity the conduct that is prohibited and ensuring that language and concepts the Board has struck down are absent from the policy.
FALL 2014 33
ON TOPIC
Safety First By Don Ashton
Look around you. One of the most popular safety slogans can be found stenciled on walls, placed on bumper stickers, found in bold print on posters, and stressed in a veritable plethora of company safety manuals. Ostensibly the message is: “Before making any business decisions we must consider, as our first endeavor, the safety of all persons who will, or may, be affected by our choices.” In more than 35 years in safety, risk management, and loss control, I have worked with many companies utilizing “Safety First” as a two-word verbalization of the company’s safety culture. Oft times that safety culture was not what the company expected it to be, even though they wanted spectacular results. In others, the safety culture was exactly what the company expected it to be as their expectations were very low. In a few notable cases “Safety First,” as described in the first paragraph, matched or exceeded their expectations.
• Is the company safety program spearheaded by a safety manager or the owner/president/CEO/COO of the organization? • Does “safety” lead off every meeting or is it relegated to a lesser role and importance? Is the safety manager attending every production meeting? Are they invited? • Does the safety manager report to executive management, or to operations? Are the safety manager’s reports reaching your ears, or are they being sanitized for your ease of acceptance? • What role do your workers play in maintaining and improving your safety programs? • Is there a safety committee? Are the recommendations and observations of the committee reviewed and acted on?
In determining whether you have a “Safety First” culture, consider the level of importance you attribute to safety.
In order for “Safety First” to have any value to the company, it has to be viewed from the perspective of a “first and foremost/ top-down” obligation. It starts first; at the very top of the organization. If management commitment does not exist, then safety is relegated to a lower tier where oftentimes a middle manager is tasked with the impossible assignment of trying to make safety work. The workers will not buy into such a program and neither will higher management.
• Whenever business decisions are being made are safety issues taken into consideration? What is the severity of an incident should it occur? How often could it happen? What are the costs involved to remedy such a situation?
Thirty-five years ago I was told that “Safety First” really meant “When the layoffs come the safety manager is the first person to go.” This definition really does come true when that safety manager is not considered first and supported where needed.
• When making business decisions, are safety and loss control issues viewed with an eye towards impact to the general public? Workers? Worker’s families?
It truly is a pleasure to watch our membership implement the values of a first-class and fully implemented safety program, keeping safety FIRST in their business decisions. It is this forward thinking approach that keeps GBCA members the best trained, highly skilled, and most trusted contractors in the region.
Where “Safety First” fails for most companies is a lack of understanding of what it truly means and how committed they must be if they decide to implement its strategies.
• Is your safety goal ZERO accidents or do you have an “acceptable” level of tolerable incidents you can live with? • Are management, supervisory personnel, and workers assigned a “favored” or “most important” status when it comes to following safety rules? Are they held to the same strict standards to which “less favored” or “less important” personnel are held?
34 ConstructionTODAY
Torcon Earns OSHA VPP Star Mobile Workforce Recognition
www.tnward.com
The tremendous growth and staying power of T.N. Ward Company is the result of working harmoniously with owners, architects and subcontractors to bring each project to a conclusion that is rewarding and satisfying to all.
Northern Children’s Services Merrick Hall
Safety is always of paramount importance in the construction industry. For more than 25 years, Torcon, Inc., one of the region’s most active construction managers, has taken a unique approach to safety on its projects, implementing OSHA’s Voluntary Protection Programs (VPP). Torcon recently became one of the first construction firms in the area approved by OSHA into its Mobile Workforce Star VPP within the Region III, Philadelphia Area Office Designated Geographic Area. Torcon had previously been approved in the Mobile Workforce program in Region II (New York and New Jersey). Torcon welcomed OSHA Area Director Nicholas DeJesse to their Philadelphia office at the Navy Yard for an official ceremony to present a plaque and VPP Star flag to commemorate the company’s acceptance into the prestigious program. Representatives from the General Building Contractors Association, the Building Trades, Local 8 and the Subcontractor Association of Delaware Valley were present at the ceremony. All are important partners with Torcon in ensuring jobsite safety. At the heart of Torcon’s safety efforts is a commitment to the principles of OSHA’s VPP, which is designed to recognize and promote effective safety and health management. In this program, management, labor and OSHA establish cooperative relationships at a workplace that has implemented a strong safety program. VPP sites are determined to go beyond simple OSHA compliance and change the safety culture through education and cooperation. VPP is OSHA’s most demanding program and Torcon has led the construction industry nationally, achieving 22 VPP Stars, the highest possible rating.
General Contractor Construction Management Design/Builder Constructing Buildings with Integrity Since 1918 Ardmore, PA Atlantic City, NJ 610.649.0400 609.345.5877 FALL 2014
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Photo: OTA photos www.tradingacademy.com
ON TOPIC
U.S. Targets Low-Cost Capital from Immigrants Seeking Permanent Residency By Daniel Miles, Ph.D. and Gregory Byrnes
In today’s challenging economic times, traditional forms of capital often come up short. For U.S.-based businesses and real estate projects that create jobs, funding through the rapidly growing EB-5 Immigrant Investor Program can fill a variety of capital funding gaps, including serving as mezzanine financing, replacing or augmenting bank financing or supplementing the equity contribution. In Philadelphia, the majority of these funds have been used for significant new construction projects that have the backing of the Philadelphia Industrial Development Corporation (PIDC) Regional Center, including the Comcast Center, the Pennsylvania Convention Center, the Aker Philadelphia Shipyard, and Kimpton’s Palomar and Monaco hotels. The PIDC Regional Center is a partnership between PIDC and New York-based CanAm Enterprises, LLC. They attract and use immigrant investments to capitalize a loan program called the Welcome Fund, which provides a source of low-cost 36 ConstructionTODAY
senior financing for commercial, industrial or non-profit firms that create significant job growth and are located in or planning to locate in Philadelphia. The Welcome Fund is appropriate for projects with strong corporate, institutional or government sponsorship, according to PIDC executive Anne Bovaird Nevins. To date, the Welcome Fund has raised more than $600 million to fund 27 projects. Enacted by the U.S. Congress in 1990 to help combat a sluggish economy and spur job growth, the EB-5 program offers foreign nationals quick access to a Green Card in return for investing money in the U.S. To receive permanent residency, they must contribute a minimum of $500,000 in certain qualified investments that, in turn, generate at least 10 full time jobs, said Debbie A. Klis, an attorney with Ballard Spahr. “Job creation can be through both direct and indirect jobs.,” she added.
In 1992, the Immigrant Investor Pilot Program expanded the EB-5 program to include economic development projects that are run through a Regional Center. Regional Centers are local entities involved in economic growth for a defined, geographical region. Most EB-5 investment occurs through a Regional Center, which is an economic entity, public or private, involved with the promotion of economic growth, regional productivity, job creation and increased capital investment. The regional centers act as matchmakers between foreign capital and local developers in need of funds. Overseen by The U.S. Citizen and Immigration Service (USCIS), the regional centers and the Immigration EB-5 funds have been typically used for projects such as sports stadiums, convention centers, office buildings, casinos, hotels and entertainment venues. The low interest loans usually have to be repaid within five years. Econsult Solutions, Inc. (ESI), which provides analysis of regional center geography, assists entities seeking to establish regional centers and provides rapid assessment of EB-5 application feasibility, has provided its EB-5 services to universities, healthcare and recreational facilities, firms making renewable energy investments. Investments in port terminal infrastructure as well as downtown revitalization projects. After two decades of anonymity, the number of EB-5 regional centers has exploded in recent years, from 11 in 2007 to 200 in 2012 to a current 751, 60 of which are in Pennsylvania, including American Pathway Regional Center, LLC and PIDC in Philadelphia. Approximately 90 percent of EB-5 program applications are registered through the regional centers. CanAm Enterprises, PIDC’s highly respected partner, has been a dominant player in the U.S. in terms of money raised, projects funded and jobs created. Tom Rosenfeld launched CanAm Enterprises in 1987 when Canada unveiled its Business Immigrant Investment Program (BIIP). Over the next 15 years, CanAm worked with major Canadian Banks to raise $192 million from 1,400 qualified investors. Beginning in 2002, CanAm shifted its focus to the U.S. Immigrant Investor Program, according to Rosenfeld, who earned his bachelor and law degrees at Temple University. Partnering with the City of Philadelphia, CanAm established its first Regional Center there in 2003. Since then, it has had designated or reaffirmed six regional centers that have cumulatively raised $1.4 billion in EB-5 capital for more than 40 projects, representing more than 3,000 immigrant investor families. Philadelphia and the Commonwealth of Pennsylvania account for the lion’s share of its business. CanAm’s projects with the Philadelphia Industrial Development Corporation include the
Pennsylvania Convention Center ($122 million), Southeastern Pennsylvania Transit Authority ($175 million), University City Science Center ($20 million), Kimpton’s Monaco and Palomar hotels ($51 million), Comcast Corporation ($26 million), AgustaWestland ($29 million), and the Aker Philadelphia Shipyard, ($60 million). As of September, CanAm’s investments have leveraged three to four times that amount from other investors. CanAm has also undertaken seven projects with Pennsylvania’s Department of Community and Economic Development, including a $40 million project with the Valley Forge Convention Center as well as $20 million for the Allentown City Center. As of September, CanAm has raised $280 million for seven Pennsylvania projects based outside Philadelphia; the funds came from 560 investors. The total number of jobs created varies from project to project, depending on the size of the loan and the scope of the project, explained the President and CEO of CanAm. The required number of jobs needed for each investment also varies depending on the economic model used to determine the number of indirect jobs that will be created. As a conservative precaution, CanAm requires its projects to not only meet the minimum job requirement of the U.S. Citizenship & Immigration Service, but to exceed them. In most cases, more than 10 jobs per investor are created for each project. As one of the nation’s leading promoters of immigrant investment funds, CanAm’s services to investors include, but are not limited to, the following: • Preparation of evidentiary documentation for green card applications • Monitoring of the project as it relates to job creation and working with economic consultants such as Philadelphiabased firm, Econsult Solutions, Inc. • Preparation of semi-annual reports to the investors regarding the status of the investment project • Preparation of annual reports to USCIS regarding projects and investor statistics Rosenfeld said about 80 percent of the investors his firm recruits are from mainland China. “We work with the U.S. Consulate to identify successful entrepreneurs who have the financial ability and interest to invest in the U.S.,” he said. “The bulk of other investors are from South Korea, Taiwan, and Russia. Today, foreigners’ favorite places for investment are apartment buildings, hotels and resorts.” In 2010, the PIDC Regional Center was amended to include four additional adjacent counties to the designation, including the counties of Bucks, Chester, Delaware and Montgomery, all of which make up the Greater Philadelphia Region.
FALL 2014 37
CONSTRUCTION NOTES
Clemens Construction Michael Kaminski
It’s 4:00 a.m. in the morning and Clemens Construction Company’s superintendent, Michael Kaminski, is getting up to start his normal routine. He grabs himself a coffee, jumps into his truck, and heads to the jobsite. After unlocking the construction gate entrance, he turns to walk toward his site office. At his desk, he spends the next hour of the morning meticulously reviewing his paperwork and ensuring that the plan of the day is in order. He’s ready for the first crews to arrive. This has been Mike’s routine for the past 24 years of his career with Clemens. Proud husband, dog owner, and Polka enthusiast, Mike has evolved to be the premier superintendent at Clemens. His resume is full of challenging and high profile projects, some of which are the most celebrated projects in the company’s 35 year history. Mike’s current project is the new luxury midrise apartment building, AQ Rittenhouse. Developed by Aquinas Reality Partners and located in the Rittenhouse neighborhood of Philadelphia. This project boasts 110 units within its 12 story structure. In addition to the apartment units at 2021 Chestnut Street, this building will include a street level space for a future restaurant or retailer. A highlight of AQ Rittenhouse, and a unique way to give back to the community, is the future use of the basement level in the new building. Adjacent to the project is the Freire Charter High School. With roughly 500 students attending, the developer will be turning over its basement level to the High School for future classroom space. While working at this project, Mike explains his way of thinking on how to run a successful project. In the words of Mike, “the single biggest factor in a job, are the people.” He emphasizes that it takes a team effort to cross the finish line and each member must do their part. Every minute of the day Mike is busy on the jobsite and driving the team forward, making sure the field team knows what needs to be done for the project to be successful. In addition to his current multi-family project, Mike has seen an array of project types during his time with Clemens. Mike led the charge when Clemens renovated the Westin Hotel in Philadelphia. This project included 294 guestrooms, common spaces, grand ballroom, pre-function areas, meeting rooms, and the entrance lobby. With Mike at the helm, Clemens managed
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2021 Chestnut Street
all of the other subcontractors, while performing the added function of receiving, storing and installing all of the owners FFE, meeting all of the turnover dates and having the guestrooms move-in ready. The 172,000 square foot, 16-story project was completed in 18 weeks while the hotel remained in full operation. Clemens Construction Company and Mike Kaminski are no strangers to fast paced schedules. He’s willing to tackle the most
Rat’s Restaurant
challenging of projects, and keeping in-line with his Polish heritage, he’ll say that the project will be “a piece of Babka.” This was evident when constructing a new 13,000 SF regional headquarters building for a major banking company in Monmouth County, N.J.; Mike completed the project in less than 90 days from the start of steel erection. This project featured a Pilkington Structural float glass wall system, exterior metal panels, granite columns, interior water features, and an impressive full stainless steel stair and rail system. Clemens’ projects aren’t just limited to buildings and fit-out work. Hamilton, N.J., is home to the Grounds for Sculpture. This 42-acre sculpture park, comprised of American and international artists, was founded by John Seward Johnson II, grandson to the founder of the Johnson & Johnson company. Mike worked alongside DAS Architects to recreate the park for future exhibits. The work included a full overhaul of the park grounds and the completion the Rat’s Restaurant, a fine dining experience which boast some of the most romantic views in New Jersey. The restaurant work included a full kitchen renovation and a new expansion with extensive tile and highend finish work. After working with Mike on this project, Sue Davidson of DAS Architects stated that he is “one of the most conscientious, problem solving and creative superintendents we have ever worked with. I wish he could build all of our projects.” At Clemens Construction Company, we believe our people are our greatest asset. Our team is always striving to go above and beyond. Mike can demonstrate this philosophy by being one of the few union carpenters in Philadelphia to have taken the personal time to study and pass the LEED AP exam. His good-natured personality wins respect with his subcontractors, but he still knows when to throw down the hammer and push the job forward.
At the end of the day, it’s all about family. Mike is certainly part of the Clemens family, but when the last crews head out and he’s done preparing for the next day; he locks up the gate, gets back in his truck and heads home. After pulling into his driveway, with a smile on his face, he’s happily greeted by his wife Eileen and his best buddy, his dachshund Elsa.
Trusted by the Construction Industry Dilworth Paxson LLP represents owners, developers, contractors, lenders, and design professionals engaged in public and private, commercial, institutional, and residential construction projects. Call Joe Kessler at Dilworth to handle legal issues including: Litigation claims Bidding and bid disputes Contract negotiations Project closeout Dispute resolution proceedings Pension liability (215) 575-7198 jkessler@dilworthlaw.com
FALL 2014 39
CONSTRUCTION NOTES
Structural Restorations to 30th Street Station Are Nearing the End of the Line One of Philadelphia’s most iconic landmarks, Amtrak’s 30th Street Station continues to be a central hub for commuters in and out of the city. The more than 80-year-old station saw 4,125,203 passengers walk through its doors in 2013, making it Amtrak’s third-busiest station. As a reward for its dependable services throughout the years, the station is currently undergoing a much-needed tune-up. Shoemaker Construction Co., headquartered right outside of the city in West Conshohocken, PA, is nearing completion of major renovations to 30th Street Station’s West Plaza and North Parking Deck. Totaling more than $30 million and 335,000 square feet, the renovation areas include the station’s West Plaza, basement, parking and street levels, and will primarily serve a functional purpose as opposed to aesthetic. The project has been ongoing for more than two years, with construction beginning in June 2012. Structural restoration features of note include: Demolition of an existing parking deck, 100,000 square feet of structural steel added to the parking deck, new concrete sub slabs and topping slabs, waterproofing, lead abatement and painting of steel, concrete and steel repairs, new storm drainage system, Two new stair towers and lighting upgrades. Shoemaker’s project team was selected to address the need for extensive renovations that were initially prompted by inadequate waterproofing on the street level of the parking deck, which had not been replaced since the original construction of the station in 1933. This failure in the waterproofing led to severe damage to the structural steel and deck of the street level. The entire West Plaza deck visible from the street level was removed, including the structural and topping slabs and steel support framing since the deterioration was too advanced to salvage any portion. As all utilities servicing the Cira Center office tower (including the high rise’s primary 13.2 KV power supply) were run immediately below and tight to the deck that was being removed, it was clear that utility protection was the most critical step during this phase of the project. Shoemaker enlisted the services of a specialty structural shoring engineer to design a support and protection system that was installed to ensure uninterrupted service and workforce safety throughout the demolition and rebuilding process. These areas of utility protection became logistical blockages as they divided the area into three north-south zones, causing the need for creativity and often multiple picks to safely set steel in the east-west direction. 40 ConstructionTODAY
Led by Project Manager Matt Walsh, the Shoemaker project team has made it a point of emphasis throughout the project to ensure employee and visitor safety while minimizing disturbances to the station’s operations: a difficult challenge, given the site’s high level of daily operations. To accomplish this, the team developed and implemented numerous project-specific site and safety plans. One of the more unique challenges to this project has been the limited access to the work site. In order to reopen the surface West Plaza to commuters and pedestrians by the busy Thanksgiving travel week in 2013, the work at the top of the project was completed first. This meant Shoemaker’s team completed the project upside-down as they worked from the street to the basement levels. “While working in the basement level of the parking deck, the only point of access was at the southern end of the site, which made it increasingly difficult to move materials the further north we moved with the demolition of the existing parking deck,” said Walsh. “We also were limited in the size of the demolition equipment we could use, with much of the steel being manhandled.” In order to install the two new stair towers, dowels had to be drilled and set into the two-foot thick basement floor slab and new footings completed 25 feet below the street level. A concurrent and independent track of work was the lead abatement and painting of the structural steel surrounding the active train platforms serving 11 Amtrak train tracks. Track closures were coordinated based on Northeast Corridor and Acela schedules to reduce the impact to commuters. Platforms were divided north-south to maintain access on one side while containment was set on the other. The total impact was reduced by implementing an aggressive schedule working 12-hour days, six days a week for three months. Given these challenges and the proximity of the project to the active west rail yard, Walsh and the rest of the Shoemaker team have been committed to maintaining an open line of communication with Amtrak throughout the project’s entirety. Ultimately, the project team’s effective coordination with Amtrak led to unique solutions to equally unique challenges. To this point, Shoemaker has maintained a steady schedule and is on pace to complete the renovations in October 2014. Once the restoration is complete, the 80-year-old landmark will be ready to continue serving as a prominent transportation hub for 80 more years.
Trending: Vehicle Leasing And Fleet Management So you’re considering the purchase of fleet of vehicles for your company. Or, maybe you already have a fleet and need to replace or add a new vehicle, but the thought of enduring half a day at your local dealership is less than appealing. You’re not alone. In fact many fleet managers flat-out dread the experience of adding additional or replacing old vehicles. Luckily, there is an alternative: leasing. If it Appreciates Buy it; if it Depreciates, Lease it As oil baron Paul Getty once famously stated, “If it appreciates, buy it. If it depreciates, lease it.” Leasing provides “True Cost Financing,” and payments are lower because they are based on the “true cost” of the vehicle — the portion you actually use. Today, many small and large companies have discovered the value of stretching their budgets and improving cash flow by leasing their vehicles. So why aren’t more businesses leasing? It could be that the average person’s perception of vehicle leasing has been colored by the ads they see — and the impression they get is usually not very positive. Most of these ads are aimed at individual consumers, not at those needing multiple vehicles. People with the need for fleets often don’t realize the differences, features and very real benefits of a commercial leasing plan for their business. Admittedly, the leasing process itself can seem very confusing. This is understandable as the person acquiring the vehicles usually isn’t an expert — it’s an additional responsibility to their job function — and most don’t enjoy it. Instead of clarity, they often have lists of questions, concerns and uncertainties about the process. Most businesses also don’t understand that their fleet needs to be managed with care. Many hold on to vehicles for too long and don’t understand the importance of properly cycling their fleet. Aging company vehicles also can be bad for business. Should an older vehicle break down and result in a total loss, the business itself may effectively be closed — at least until a replacement means of transportation is found. Yet, despite these barriers, the benefits to leasing are relatively easy to see, literally. Commercial vehicle leasing allows a company to keep a more modern, dependable and better-looking fleet on the road. Do not underestimate this value. A company’s fleet is a representation of the organization itself, and if a fleet is aging or unappealing, the company is viewed negatively; a poor assessment may result in missed business opportunities. An updated fleet gives a company an advantage, offering a crisp and reliable impression. In addition, drivers benefit from updated technologies, improved safety features, and better fuel economy.
Perhaps the most compelling benefit, though, is the positive effect on your company’s bottom line: commercial lease plans allow you to conserve your cash. Why The Bancorp? You can avoid these misperceptions of leasing — and take advantage of its benefits — when The Bancorp is your chosen partner. As an active member of the GBCA, we work with both small and large local businesses, acquiring any type of vehicle at wholesale pricing, and we will provide a lease plan tailored to any company’s needs. The majority of our customers have fleets from one vehicle to 100, and we are committed to each customized relationship. Our team of leasing and fleet management specialists will confer with you and develop payment plans tailored to the specific needs of your business. We will match the correct vehicle to its application and buy it at a wholesale price. We will find the vehicle(s) you want (or recommend an alternative) and do so with an unbiased approach to model selection. We are able to support our GBCA associates by passing along the fleet pricing we enjoy as a registered commercial leasing company with all manufacturers. With The Bancorp, you will never have to negotiate price again. Your vehicles will be purchased via our fleet authorization, which delivers the lowest wholesale price available. Additionally, our leasing plans and terms are among the most aggressive in the industry. That’s because we are the only bank in the country offering direct leasing with no middleman. As the party controlling the resources and the transaction, we make financing easier. We can also include any up-fitting or vehicle wrap within the lease plan and monthly payment. Finally, as fleet managers, one of our strengths is the remarketing of your vehicles at the end of their life cycle. Again, you are not required to participate in the process — we bear that responsibility. We utilize a variety of outlets to maximize the resale proceeds for our customers. This function is often overlooked in the selection of a lessor, but has significant implications in the overall cost to you, the lessee. From the beginning to the end of the lease, you enjoy the benefits of a fleet, while the Leasing and Fleet Management division at The Bancorp takes care of all the details. It’s time to join ranks with the many who have discovered the benefits of leasing and fleet management for their business fleets. As a GBCA co-member, I hope you will give the Leasing and Fleet Management division of The Bancorp a call when your next need for vehicles arises. Paul Pollock, Vice President, Northeast Region, Leasing and Fleet Management, The Bancorp 610.233.3529 thebancorp.com
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CONSTRUCTION NOTES
Three Building Facelift at Temple University The Project
Phase One — 2,509 Windows in 71 Days
The words expansion, development, investment, and growth have been synonymous with Temple University over the past five years. For many of our GBCA general and specialty contractors, this has translated to significant opportunities and challenges, which in our world of construction are really one in the same.
The two-way benefits of window replacement are unique: new and improved aesthetics on the outside, while delivering better performance of energy, light, operation, and sound on the inside. To match the new SERC building, the replacement windows are finished in PPG’s high performance, three-coat metallic Duranar paint® and the glass, PPG’s SolarBan® 60 to let in 70 percent of the natural light while offering superior thermal insulation.
As new construction of Temple’s $137-million Science Education and Research Center (SERC) took center stage this summer, its three surrounding high-rise buildings, Anderson Hall, Gladfelter Hall, and Engineering were to receive a fast track replacement window. The Team
In order to achieve design consistency over this block of buildings, Temple utilized USA Architects for both the new SERC building and the facelift. Temple selected Gilbane Building Company as construction manager through a best-value bid process. Façade work is not new to Gilbane — look at their work at City Hall as just one example — and they keep true to their reputation for keeping projects on time and on budget. When faced with the task of choosing subcontractors, they looked to Eureka and Graboyes to create the best team possible. While some competitive glass and glazing contractors bid the entire project, Eureka Metal & Glass and Graboyes Commercial Window Co. split the scope of work to match their strengths and deliver the best outcome for Temple from the perspectives of quality, price, and schedule. This arrangement proved to be successful as they were ultimately awarded the work. The storefront and curtainwall was manufactured by YKK AP, replacement windows came from Graham Architectural Products, and glass for all windows was fabricated by J.E. Berkowitz. Graham Architectural Products was specifically selected to help create narrow profile without inhibiting sight lines.
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While these new benefits were plenty, so were the challenges. To minimize disruption of faculty and students, Graboyes conducted field measuring of every window opening during winter break, and was required by contract to perform the field installation between April 15th and July 31st. With shop drawings, submittals, approvals, and mock-ups required before ordering materials, the crunch was on from day one. Graham and J.E. Berkowitz delivered on time, and Graboyes utilized dual crews, each installing approximately 20 windows per day to complete work on July 25th, a week ahead of schedule. With city campus construction, you can count on minimal on-site storage, tight traffic and parking, so the logistics and product flow are critical to keep crews on pace. On a daily basis, new windows and glass were moved up to the floors in each building while demolished windows came down. Graboyes utilized a four-person delivery team and was fortunate to secure short-term warehouse space just a few blocks away. Phase Two — Storefront, Entrances, and Curtainwall
Gilbane was successful in completing this project on time over the summer before students returned to their classes. While the building wasn’t full, Gilbane still had the challenge of working around summer students and staff for delivery, classrooms, elevator usage and safety of those onsite. Coordinating and maintaining security on the main floor was also a large task as the façade was pulled down.
allowed task sequencing that kept the project moving forward quickly while also keeping the inside of the building leak free. Lessons Learned — Tips to Consider For Your Next Window Replacement Project
1. Develop a full understanding of the timeline. Take into account measuring, mock-ups, drawings, selections, historic approvals, testing, and manufacturing lead time. Custom replacement windows must fit; they simply can’t be purchased “off the shelf.”
Eureka was challenged by a lack of sufficient as-built information to complete the engineering prior to summer break. Once the unseen conditions were exposed, engineering ran parallel to product release, which presents obvious risks if the intended design cannot be engineered. Materials were sequenced to the jobsite on a daily basis to fill production needs to complete the required areas prior to the students’ return in mid-August. The Gilbane team worked very closely with Eureka and together provided a safe and weather-protected building while at times having over 1,000 total square feet of windows removed and in process of replacement. Close attention to the 10-day forecast
2. Where design/build components exist, leverage the value of an experienced window replacement contractor who offers more than a “bid from the prints.” By evaluating field conditions, they will help value-engineer, minimize change order potential, and build achievable schedules. 3. Realize that unforeseen conditions will bring serious challenges to complete the quality installation on time. Allowance for the likely surprises in up-front scheduling and procurement is critical to project success. 4. For window projects in a live building, an emphasis on safety goes beyond the norm. With active occupants, pedestrians below, and with demolition and installation taking place at a large window opening above, need we say more?
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
44 ConstructionTODAY
General Building Contractors Association
(code: AF953)
Affinity Membership Program Support your organizations’ fundraising efforts by joining today. We’ll make an annual contribution based upon the activity of participating members TD Bank accounts once program requirements have been met. For more information, visit your local TD Bank or call 1-888-751-9000.
Saint Peter’s Tower
Christ Church Philadelphia, Neighborhood House and now Saint Peter’s Church
The Founders of the Country worshipped here. George Washington, Betsy Ross and Benjamin Franklin, to name a few. The Episcopal Church in America started here along with our nation.
In 1758, a satellite congregation was established at 3rd and Pine and called Saint Peter’s Church. In 2012, the roof trusses were found to be severely deteriorated and the Church had to be closed. Haverstick-Borthwick was
selected to restore the trusses, replace the roof and restore the tower. Starting in September of 2012, the Sanctuary was reopened in time for Christmas and is now fully operational again.
Some of the Awards to Date: GBCA Building Excellence First Place Historic Preservation Christ Church Sanctuary - 2008 Neighborhood House - 2010 Saint Peter’s Church - 2013 Philadelphia Preservation Alliance Preservation Achievement Grand Jury Award Christ Church Sanctuary - 2008 Neighborhood House - 2011 Preservation Pennsylvania Institutional Project Award - 2008
p: 610.825.9300
f: 610.825.9194
www.haverstick.com
TODAY’S LABORER APPRENTICE Your Skilled Workforce Tomorrow...
To learn how our Apprentices can help your company contact Traci Woodall , Jr. at 610.524.0404, e-mail twoodall@ldc-phila-benefits.org LABORERS’ DISTRICT COUNCIL Education and Training/ Apprenticeship School 500 East Lincoln Highway, Exton, PA 19341
FALL 2014 45
Josh Jones Vice President of Sales and Operations 717-412-4209 Main 267-525-1134 Direct 717-412-4219 Fax 847-420-3213 Cell
j.jones@fireproind.com www.fireproind.com
115A Aster Drive, Harrisburg, PA 17112
Joe Debes GENERAL MANAGER 100 Morton Avenue Chester, PA 19013 PH 610.874.0231 / FX 610.874.0284 Cell 484.429.1406 jdebes@crmeyer.com / crmeyer.com
484.654.0575 constructionriskpartners.com
We’re with you, every step of the way. Construction Risk Partners is a full-service surety construction industry. We are a privately held, in our ability to help our clients achieve extraordinary results.
46 ConstructionTODAY
Best Commercial Project Over $10 Million
General Building Contractors Association Construction Excellence Awards for...
Best Commercial Project Under $10 Million
Southstar Lofts
Radisson Blu Warwick Hotel Lobby Renovation
Dranoff Properties JKR Partners, LLC Clemens Construction Co., Inc.
AP/RAD Venture, LP Tackett & Company, Inc. Clemens Construction Co., Inc.
clemensconstruction.com
FALL 2014 47
Confined Space / High Angle Rescue Teams Occupational Safety and Industrial Hygiene Consulting Services Job Site Safety / Medical Staffing, Site Audits and Sampling Safety Equipment Sales, Service and Rental Authorized MSA Repair Center for Fall Protection Equipment, Atmospheric Monitors and Supplied Air Systems
Health Services Respiratory Medical Clearance and Fit Testing Drug and Alcohol Screening Blood Serum Analysis
Training OSHA Ten and Thirty Hour Courses Confined Space/ Fall Protection / Excavation First Aid, CPR, AED / HAZWOPER Safety Program Development and Support
Several Other Specialized Training Programs and Consultation Services Available
Call with questions 215 676 3536 med-texservices.com
Electrifying Philadelphia for over 94 years!
www.shellyelectric.com Bruce D. Shelly 215.627.0400 1126 Callowhill St. Philadelphia, PA 19123 Timothy J. Brink
Executive Vice President
P.O. Box 326
R o b e r t S l a t e r In c .
Geoff Eobstel
Assistant Director
Fo r Your E xca va tion N e eds !
94 Highland Ave. Schwenksville, PA 19473
2250 Hickory Road, Suite 100 Plymouth Meeting, PA 19462 T 610.940.4999 F 610.940.4994 www.mcaepa.org
WINDOW REPAIRS & RESTORATION, LLC A Marvin Window Distributor and Installer
www.robertslaterinc.com Phone: (610)287-9088 Fax: (610)287-1516 Email: rslaterinc@robertslaterinc.com 48 ConstructionTODAY
WWW.WINDOWREPAIRANDRESTORATION.COM cdepiano@comcast.net 10 Forest Drive Glassboro, NJ 08028
856.582.4060 PH 856.256.8317 FAX
Philadelphia University’s M.S. in Construction Management
We prepare working professionals to increase their competitive advantage by developing sought–after skills necessary in today’s workplace. Ideal for working professionals
CURRENTLY ACCEPTING APPLICATIONS FOR SPRING AND FALL 2015
• Evening classes • Flexible course scheduling—can even be completed within one year Visit www.philau.edu/msconstructionmgt to learn more or call graduate admissions at 215-951-2943.
One Choice. One Zurn. Unique product solutions that save time and money. Zurn provides lean construction and engineered solutions that will reduce material cost, site work and labor. Our goal is serving the customer through innovative products that create efficiencies in new construction and retrofit applications. Choose Zurn for a reliable, recognized manufacturer to supply your entire installation, from behind the wall rough-in, to finish trim product and fixture systems.
Z1800
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The Zurn Z415BZ Leveling Floor Drain with patentpending design holds the drain-set rigid during the pour, and allows for easy post-pour concrete adjustment saving valuable time and labor costs.
zurn.com 1.855.ONE.ZURN
FALL 2014 49
referral directory ASSOCIATIONS & UNIONS DVMI - Delaware Valley Masonry Institute, Inc.
ELECTRICIANS Shelly Electric
GBCA, General Building Contractors Association
ENGINEERS O’Donnell & Naccarato
LDC, Laborer’s District Council, Education and Training / Apprenticeship School
ENGINEERED WATER SOLUTIONS Zurn
LECET, The Laborer’s - Employer’s Cooperation and Education Trust and The Laborer’s District Council of Metropolitan Philadelphia & Vicinity.
FIRE PROTECTION Fire Protection Industries, Inc.
SEE OUR AD ON PAGE 6.
SEE OUR AD ON PAGES 26-27.
SEE OUR AD ON PAGE 45.
SEE OUR AD ON PAGE 51.
Mechanical & Service Contractors Association of Eastern PA SEE OUR AD ON PAGE 48.
Union Iron Workers of Local 401 SEE OUR AD ON PAGE 15.
SEE OUR AD ON PAGE 22.
SEE OUR AD ON PAGE 49.
SEE OUR AD ON PAGE 46.
GENERAL CONTRACTORS & CONSTRUCTION MANAGERS C. Erickson and Sons, Inc. SEE OUR AD ON PAGE 43.
Clemens Construction Company, Inc. SEE OUR AD ON PAGE 47.
CR Meyer
BANKING TD Bank
SEE OUR AD ON PAGE 46.
D’Angelo Bros. Inc.
SEE OUR AD PAGE 44.
SEE OUR AD ON PAGE 44.
BUILDING MATERIALS George F. Kempf Supply Co
Haverstick-Borthwick SEE OUR AD ON PAGE 45.
SEE OUR AD ON BACK COVER.
CONSTRUCTION LITIGATION Cohen Seglias Pallas Greenhall & Furman PC SEE OUR AD ON PAGE 23.
CONSTRUCTION Management Software Textura SEE OUR AD ON PAGE 29.
SEE OUR AD ON PAGE 48.
LF Driscoll, Co., LLC
SEE OUR AD ON PAGE 5.
Robert Slater, Inc.
SEE OUR AD ON PAGE 48.
TN Ward Company
SEE OUR AD ON PAGE 35.
LAW FIRMS Dilworth Paxson LLP
EisnerAmper LLP
SEE OUR AD ON PAGE 44.
Jacoby Donner P.C.
SEE OUR AD ON PAGE 23.
Spruce Law
SEE OUR AD ON PAGE 50.
INSURANCE & BONDING Conner Strong & Buckelew SEE OUR AD ON PAGE 2.
Construction Risk Partners SEE OUR AD ON PAGE 46.
The Graham Company
SEE OUR AD ON PAGE 9.
Institutions Philadelphia University
SEE OUR AD ON PAGE 49.
Villanova University College of Professional Studies SEE OUR AD ON PAGE 29.
SAFETY SERVICES Med-Tex Services
SEE OUR AD ON PAGE 48.
SPECIALTY CONTRACTORS B. Pietrini & Sons SEE OUR AD ON PAGE 3.
Healy Long & Jevin
SEE OUR AD ON PAGE 47.
Superior Scaffold Services SEE OUR AD ON PAGE 48.
WINDOWS Window Repairs & Restoration LLC SEE OUR AD ON PAGE 48.
SEE OUR AD ON PAGE 39.
Experienced
Innovative
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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. 50 ConstructionTODAY
The right materials. Right to the site.
Only one supply company operates the largest, most diverse trucking fleet for consistent on-time delivery, pin-point loading and helping projects stay on budget and on schedule. That’s why the area’s largest distributor of building materials for commercial and multi-family construction is George F. Kempf Supply.
CONVENIENT LOCATIONS Philadelphia 5200 Grays Avenue Philadelphia, PA
Wilmington 1101 East 7th Street Wilmington, DE
1-800-326-5367 www.kempfsupply.com