Construction Today Magazine - Spring 2015 by General Building Contractors Association

Construction TODAY PUBLISHED BY THE GENERAL BUILDING CONTRACTORS ASSOCIATION

SPRING 2015

Construction and Development Growth in the Philadelphia Region

Built for

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After many months of intensive planning and preparation, B. Pietrini & Sons poured the foundation for the Comcast Innovation and Technology Center on Saturday, December 13th. Signifying one of the largest concrete pours in the history of Philadelphia, more than 400 truckloads were delivered to establish the 10-foot-thick, 14 million-pound concrete foundation for the 1,121-foot, 59-story tower. B. Pietrini & Sons is honored to be a part of this project that will further enhance the Philadelphia skyline and create a unique and dramatic addition to the city.

King of Prussia Equipment Corp. has become the exclusive distributor of Loopbelt products in the states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, Pennsylvania, New Jersey, Delaware, and Maryland, for the sales and service of their equipment. They are also the distributer of Schwing Concrete Pumps in the tri-state area.

111 East Church Road

King of Prussia, PA 19406

T: 610 265 2110

F: 610 265 6068 bpietrini.com

Notes F R O M T H E C H A I R M A N The time has arrived. The commercial construction industry has weathered the harsh economic storm and we are emerging with strong momentum for future growth. Last year marked the first year where all but one of the major construction markets nationally made gains or stayed positive. This is surely only the beginning of what’s to come. While markets across the country are on the upswing, the Philadelphia region is absolutely booming. High-profile, landmark projects such as the Comcast Center for Innovation and Technology, the expansion at Children’s Hospital of Philadelphia (CHOP) and the revitalization of East Market are just a few of the many initiatives driving growth as demand for development permeates the region. This dynamic landscape couldn’t provide a better backdrop for celebrating the 125th anniversary of the General Building Contractors Association (GBCA). Established in 1891, GBCA is one of America’s oldest construction industry trade associations—one whose rich and storied history has shaped the industry as we know it. On this momentous occasion, I encourage you to look back at GBCA’s impact over the years. You may be surprised to learn that GBCA’s Industry Advancement Program (IAP), first conceived in the 1960s by Jack McQuade, not only revolutionized the structure through which the Association delivers programs and services to stakeholders, but also served as a model for other trade associations across the country. It is my distinct pleasure to be at the helm of this great organization in its 125th year and to serve as the first woman chairman at GBCA. It is symbolic, in fact, as we are making a concerted effort in the years ahead to expand the diversity of the Association and increase representation among women and minorities. These groups are increasingly important constituents in the construction environment and bring valuable perspectives to the table that will ultimately fortify our organization, and our members. As we move forward, we will also focus on cultivating the next generation of industry leaders. Our Construction Leadership Council is growing and spearheading new initiatives that will empower young workers to pursue successful, rewarding careers. Stay tuned for more on that in a future issue. Rooted in 125 years of history, GBCA is well positioned to continue its legacy of leadership. We are dedicated to delivering best-in-class tools and insights through resources like Construction Today, and we are looking forward to continuing to guide the industry during this exciting and long-awaited period of growth.

EMILY BITTENBENDER Chairman of the Board, General Building Contractors Association Bittenbender Construction, LP

4 ConstructionTODAY

Reshaping the Skyline Since 1929 The success of your project is the foundation of our future.

www.lfdriscoll.com

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

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O: 610.668.0950

Content

SPRING 2015

28 FEATURES 16 Building the Industry for

Building Contractors: GBCA Celebrates a Storied History Featuring an interview with Charlie Cook, long-time GBCA member and recipient of the GBCA’s first-ever Distinguished Director Award (2015)

20 125th Annual Business Meeting

Cover Photo by B. Krist for Visit Philadelphia™

COVER

On January 19, 2015, the 125th Annual Business Meeting of the General Building Contractors Association was held at the Union League of Philadelphia

10 Construction and

28 Current Construction Boom Suggests Continued Center City Growth

According to Labor Department numbers, Philadelphia is showing continued growth as it was recently ranked third in the country in new construction jobs.

Development Growth in the Philadelphia region and Nationally Philadelphia is not only on the upswing, we are absolutely booming! With so many projects and events taking place in the region, Greater Philadelphia is set to transform in 2015.

30 AGC Update

Contractors Foresee Growing Demand

32 Holiday Open House

26 22 Welcoming Emily Bittenbender

Making History: GBCA’s First Woman Chairman

24 Contractor’s Corner Featuring Tom Slater

26 ACE Mentor Program Shaping the Future of Design and Construction

On December 4, 2014, GBCA celebrated a year of accomplishments with its members at the annual Holiday Open House.

32 Membership Dinner On February 18th, GBCA hosted its quarterly Membership Dinner Meeting. The event was attended by nearly 100 of GBCA’s members.

33 CLC Hard Hat Tour The Construction Leadership Council of the GBCA hosted a hard hat tour of the Comcast Innovation and Technology Center.

SPRING 2015

Content

SPRING 2015

DEPARTMENTS

IN EVERY ISSUE

MEMBERSHIP UPDATES

25 Events Calendar

34 Taking Advantage of

40 Construction Notes

Your GBCA Membership

50 Referral Directory

The benefits of GBCA membership span beyond our advocacy, education, labor, and safety offerings

B. CO TE CO RE CO TO FU AN CE CO PO CO GU FO BR CO BA SE ME PR ER CO TU MA RE SO GR CIT CO MO AN GR RO MU ME SA MG RI TR BA IN UN

EDUCATION AND

PROFESSIONAL DEVELOPMENT

35 Distinction through

SAFETY

FIRST

36 What Does ‘Safety’ Really

Continuous Improvement: The Supervisory Training Program

Mean?

Continued education and training are some of construction’s biggest attributes and we at GBCA are happy to contribute to this through our sponsorship and support of the STP.

If the safety program is based on the total elimination of harm or danger it is doomed to failure.

LEGISLATIVE CORNER

38 2013 – 2014 Southeastern Pennsylvania Legistlative Scorecard

The 2015 Legislative Scorecard provides a snapshot of legislators’’ records on a select list of bills related to the Construction industry.

ConstructionTODAY

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theGBCA

@gbca

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gbca.com/publications/construction-today-magazine

PUBLISHER /EDITOR Lauren Tosti ADVERTISING/SALES Lauren Tosti CONTRIBUTING WRITERS Meghan Claiborne / Jim Hiles / Rick Lowe Joseph M. Martosella / A. Peter Prinsen Amanda Gibney Weko DESIGN Suzanne Guelli ACCOUNTING Michelle Versace EDITORIAL OFFICE General Building Contractors Assn., Inc. 36 South 18th Street Philadelphia, PA 19103 P: 215.568.7015 F: 215.568.3115

PRINTING A-Lex Print & Promotion 1670 South Hanover Street Pottstown PA 19465 484.988.1156 Copyright: CONSTRUCTION TODAY® registered in U.S. Patent and Trademark Office Copyright ©2004 by the General Building Contractors Association. All rights reserved. Submissions for editorial review should be sent to the editorial office address. Neither the publisher nor any individual associated with any branch of production, nor the advertisers will be liable for misprints or misinformation contained herein. PRINTED U.S.A.

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. PIETRINI & SONS BITTENBENDER C. ERICKSON & SONS, INC. C.H. SCHWERTNER & SONS CLEMENS CONSTRUCTION OMMERCIAL CONSTRUCTION, INC. COMPONENT ASSEMBLY SYSTEMS CRB BUILDERS LLC DALE CONSTRUCTION CO. E.P. GUIDI FRANK T ER, INC. FRANK V. RADOMSKI GILBANE BUILDING COMPANY HAGEN CONSTRUCTION HAVERSTICK-BORTHWICK COMPANY HSC BUILDER ONST. MGRS J. MANN R. FINLEY INC. JAMES J. CLEARKIN, INC. JOSAM COMPANY L.F DRISCOLL CO. LAMARRA CONSTRUCTION JOHN D. ENCE LORENZON BROTHERS CO. MADISON CONSTRUCTION MURPHY QUIGLEY CO., INC. NORTHWOOD CONSTRUCTION NURMINEN CON ORP P. AGNES PHILA D&M PJ DICK R.S. COOK & ASSOC., INC. SHOEMAKER CONSTRUCTION STEPNOWSKI BROS., INC. T.N. WARD COMP ORCON, INC. TURNER CONSTRUCTION CO. A.T. CHADWICK ABBONIZIO C. CONTRACTORS ABBONIZIO RECYCLING ACOUSTICS PLUS AMER URNITURE INST. AMQUIP ARMOR MASONRY RESTORATION BAYSHORE REBAR, INC. BELCHER ROOFING CORP. BELETZ BROTHERS GLAS NTHONY BIDDLE CONTRACTORS, INC. BUCKLEY & COMPANY BURNS MECHANICAL CARR & DUFF INC CASE FOUNDATION CDP HARDWAR ENTRAL METALS INC CENTRAL SALVAGE CO CHARLES MACDONALD ELECTRIC CHESCO CORING & CUTTING, INC. CIPPCO INC CJ DRILLIN OMMERCE CONSTRUCTION COMMERCIAL FLOORING SYSTEMS CONCRETE CUTTING CONNELLY CONSTRUCTION COPELAND SURVEYING ORATE PIPING INC M. CRAMER & ASSOCIATES CRAWFORD CAULKING CRESCENT IRON WORKS CR MEYER D.M. SABIA D’ANDREA BROTH ONCRETE DAN LEPORE & SONS DEGOL CARPET DOUGHERTY ELECTRIC INC. DUGAN JOSEPH INC DZWIL, JOHN H. CONTRACTING EASTE UNITE CO. EASTERN HIGHREACH COMPANY EDA ROOFING CORP FALASCO MECHANICAL FIRE PROTECTION INDUSTRIES FIVE STAR BUIL OUNDATION STRUCTURERS GANTER, R. CONTRACTORS INC. GENERAL ASPHALT PAVING GENTILE CONCRETE G EORGE YOUNG CO. GEP ROS, INC GRABOYES COMMERCIAL WINDOW HAGEN CONSTUCTION HARSCO INFASTRUCTURE HATZEL & BUEHLER INC HERMAN GOLDN O. HMS INTERIORS JOSEPH S. SMITH ROOFING KENNEDY, R.A. & SONS KISKA, MICHAEL J. CONSTRUCTION L. CRUZ DEVELOPMENT LIM ACH COMPANY, LLC L-M SERVICE CO., INC. NORTHSTAR CONTRACTING GROUPM. COHEN AND SONS, INC. MARA RESTORATION, INC. MA ERVICE MCGOLDRICK ELECTRIC INC. MCGREGOR INDUSTRIES INC. MCKINNEY DRILLING MECO CONSTRUCTIORS MEGA CONSTRUCTION ETAL ALLIANCE NATIONAL GLASS & METAL CO OLD PHILADELPHIA OLIVER FIRE PROTECTION PEMBROKE CONSTRUCTION PMC MECHA RECISION DOOR CO., INC. PUCCI, R.R & ASSOCIATES QUINN CONSTRUCTION REVOLUTION RECOVERY RITTER CONTRACTING ROMA STE RECTION SAFESPAN SCAFFOLDING, LLC SAFEWAY SERVICES, LLC SAILING ROOFERS, INC SCHLOSSER STEEL INC. SCHNABEL FOUNDAT O. SCHNOLL, M & SONS SHELLY ELECTRIC SIEMENS INDUSTRY SILAS BOLIS CO. SLATER, ROBERT INC. STEADFAST ENTITITES LLC. STR URAL MAINTENANCE SUPERIOR SCAFFOLD SERVICE SWEENEY & SON INC., H.T. THE BERLIN STEEL CO. TORRADO CONSTRUCTION TOW AINTENANCE SERVICE UNION ELECTRIC UNIFIED PROFESSIONAL SERVICES UNITED STATES ROOFING CORP UNIVERSAL CONCRETE WI EPAIRS ACTION SUPPLY ADVANCED DISPOSAL AMERICAN FLOORS AMERICAN INDUSTRIAL SUPPLY AMMOS GLASS ART AON ARC DOCU OLUTIONS ARCHER & GREINER, P.C. BALLARD SPAHR ANDREWS & INGERSOLL, LLP BANCORP, THE BETZ, WILLIAM JR., INC. BLACK & G ROSS BERKOWITZ & ASSOCIATES PC BURNS, RICHARD S. CANTOR FITZERALD WEALTH PARTNERS CBIZ MHM LLC CHUBB GROUP INSU ITRIN COOPERMAN CO. CLARKDIETRICH BUILDING SYSTEMS CLIFTON LARRSON ALLEN LLP COHEN, SEGLIAS, PALLAS CONNER STRON ONSTUCTION RISK PARTNERS COZEN O’CONNER ATTORNEYS DAVIS, BUCCO & ARDIZZI DILWORTH PAXSON, LLP DREXEL UNIVERSITY D ORRIS LLP ECBM EISNER AMPER ENGLE-HAMBRIGHT/EHD EXEL DOCUMENT SOLUTIONS, INC FIDELIO INSURANCE FINEMAN, KREKST ND HARRIS FIRST TRUST FIZZANO BROS CONCRETE THE FRANKLIN RESIDENCES, GALLAGHER MCINTYRE GEO-TECHNOLOGY ASSOCIAT RABBER CONSTRUCTION PRODUCTS GARRIS AGENCY GRAHAM COMPANY HORIZON HEALTH VENTURES JACOBY DONNER, P.C. KEATING ONMENTAL MANAGEMENT KEMPF COMPANY KEMPF SUPPLY KLEIN AND HOFFMAN KRANDO METAL PRODUCTS KREISCHER MILLER LIB UTUAL SURETY M&T BANK M&T INSURANCE AGENCY MACINTOSH ENGINEERING MADISON RISK GROUP MARSH USA MAXWELL SYSTE ECHANICAL CONTRACTORS ASSOC. MECHO SHADE SYSTEMS, INC. MED TEX SERVICES, INC. MID-ATLANTIC CONST. SAFETY COUNCIL M AL RESOURCES MOD SPACE NRI/ NATIONAL REPROGRAHICS O’DONNELL & NACCARATO, INC. PARKER MCCAY PA PHILA. UNIVERSITY CO GMT PHILADELPHIA GROUP PMA INSURANCE GROUP POST & SCHELL, P.C. PRO-BUILD RAMLA BENAISSA ARCHITECTS LLC RE-STEEL S ICHARD GABRIEL ASSOC. RICHARD S. BURNS ROSENBERG & PARKER, INC. SAFEGARD GROUP SCHNABEL ENGINEERING SCHNEIDER E RIC SHEPARD AGENCY SIERRA INVESTMENTS SJMCA SPRUCE LAW STOLL AGENCY SUSANIN, WIDMAN & BRENNAN, PC TAGUE LUMBER ANK TEXTURA THORNTON-TOMASETI GROUP TRAUNER CONSULTING SERVICES, INC. TRAVELERS PROPERTY CASUALTY UNITED RENTA NSURANCE The Philadelphia skyline is one of the most recognizable urban landscapes in America, due in NIFIED PRFOESSIONAL SERVICES VERIZON WIRELESS VILLANOVA VIMCO INC. VISTA Association. COM INC. WSFS BANK large measure to member companies of the UNIVERSITY General Building Contractors

YEARS AND BUILDING. Like many of the landmarks that shape the contours of the City, the companies that build them are a part of the fabric of Philadelphia. And so it stands to reason that one of America’s oldest construction industry trade associations is home to the best in class.

As GBCA celebrates its 125th anniversary this year, we want to thank the owners, developers, architects, engineers, designers and other industry professionals who consistently choose GBCA contractors to bring their visions to life. And we pay homage to the 350 member companies whose reputations and accomplishments are the gold standard for the commercial construction industry. For more than a century our members have proved, time and again, they are the region’s best trained, most competent and sought after builders in the region. Their association of choice is GBCA, and we are proud to serve the industry and our stakeholders as a valued thought lea

Be Informed. Be Educated. Be Connected.

Web: gbca.com Facebook: theGBCA Twitter: @GBCA #ChooseGBCA

COVER

Construction and Development Growth in the Philadelphia Region By Lauren Tosti GBCA, Director, Marketing and Communications

CHOP EXPANSION CHOP has started work on a 2.5 million-square-foot office/research complex on Schuylkill Avenue, the first-phase of which will include, a 22-story office tower at the base of Bainbridge Street. The pediatric medical center is also set to open a 115,000-square-foot Specialty Care Center in King of Prussia in May. The expansion of the Childrenâ&#x20AC;&#x2122;s Hospital of Philadelphia will allow the medical center to continue to bring advanced tertiary-care programs to the region and, equally important, attract top scientists â&#x20AC;&#x201D; and their research grants.

10 ConstructionTODAY

National Commercial Construction Outlook

After nearly a decade, we are at long last at the point of a sustained recovery. Growth is steady, and the momentum is strong. While the pace of the recovery can be frustrating, last year marked the first year where all but one of the major construction markets nationally made gains or stayed positive. Industry confidence continued in 2014. In the third quarter, according to Engineering News-Record’s Construction Industry Confidence Index survey, 52 percent of subcontractors surveyed reported an improving market with confidence growing throughout the year. That number jumps to as high as 64 percent when looking out over the next 12 months.   “[2014] marks the first year where the institutional sector is no longer pulling down the other construction sectors,” said Robert Murray, chief economist and vice president, Dodge Data & Analytics (DDA) [formerly McGraw-Hill Construction (MHC)]. “In fact, the recovery in nonresidential is now established. It’s clear we are in broad-based and recognized recovery that is cyclical and reminiscent of 1990s, which led to a 20-year period of stability and growth.” “This is a recovery being driven by the energy sector, high-tech and resurgent manufacturing,” said Alex Carrick, chief economist for CMD Group, formerly Reed Construction Data.  Influences to support economic growth

When you take a look at the state our economy was in prior to the 2008–2009 crisis, you realize how far we have come… and how far we still need to go. GDP was just shy of 8 percent before the crisis.  “We’ve lost seven years,” said Ken Simonson, chief economist for the Associated General Contractors of America (AGC). “We have a lot to catch up.”  This is not to say that strong economic progress is not continuing to be made. It has been reported that banks largely grew or expanded by 2.2 percent on average since mid-2009. Household spending and fixed investments by businesses have strengthened.   So what are the main contributing factors to the recovery? To start, the drop in the price of gasoline, which affects spending in a similar fashion to a tax cut. Additionally, the trade deficit is now cut by one-third; the federal deficit has dropped from more than $1 trillion per year to $564 billion (projected through September 2015) based largely on domestic energy consumption; and inflation remains low.  Some great news is the drop in unemployment numbers nationally. Today’s national rate is 5.8 percent with roughly 230,000 jobs added monthly throughout 2014. Looking through the lens of the construction market, AGC reported 12,000 new jobs created in October 2014. Since then, Carrick said construction unemployment has fallen to 6.9 percent.

SPRING 2015 11

COVER “Everything changed in May, when U.S. unemployment reached numbers reflective of a pre-recession level,” Carrick said.

and the Democratic National Convention will take place right here.

Finally, the American Institute of Architect’s “The Business of Architecture: 2014 AIA Firm Survey Report” finds design activity at architecture firms has recovered to pre-recession levels.

2015 is no doubt a milestone year for Philadelphia. And, the commercial construction industry is reaping all of the benefits. The expansion of educational and medical institutions, the new hotels and parking garages that are absolutely necessary to support this growth, and the growth of commercial and office buildings are just a few of the major advancements that will be necessary in 2015 and beyond.

What Goes Down Must Come Back Up!

It can be said that what goes down in the construction market will eventually go back up. It is predicted by construction industry experts that we’re back on the upswing portion of the cycle. So get ready, hold on to your hardhats, and enjoy the ride toward the next boom.   The Market is Booming in Philadelphia

Philadelphia is not only on the upswing, we are absolutely booming! With so many projects and events taking place in the region, Greater Philadelphia is set to transform in 2015. Pope Francis is coming. Both waterfronts are growing, and so is the new Comcast tower. By 2016, we’ll have a brand new mayor

“In the past 10 or 15 years, we’ve seen this shift from that lessthan-positive way of thinking to a much more optimistic, much more can-do kind of spirit that is infectious and contagious and attractive,” said Matt Cabrey, executive director of Select Greater Philadelphia. “We’ve done a good job in creating awareness about the benefits of living and working and establishing a business and growing a business and raising a family in the region. We need to continue that.” The job market, construction projects and home values in Philadelphia will continue to rise steadily into 2018 and beyond.

THE COMCAST TOWER Comcast Corporation is building a $1.2 billion, 1.3 million-squarefoot office building called the Comcast Center for Innovation and Technology. The underground concourse will be expanded to connect to the new building and a 220-room Four Seasons will be part of the project. The skyscraper will be the tallest building in the United States outside of New York and Chicago and is a significant commitment to Philadelphia by the cable company, which will add 1,500 new jobs. The building also has the potential to attract other companies to Philadelphia that want to be near Comcast.

AMTRAK 30TH STREET STATION Amtrak’s 30th Street Station’s 335,000 square foot West Plaza and North Parking Deck completed its renovation in an effort to improve its infrastructure. In addition to bicycle parking, the renovation also offers a safer and more pleasant environment for pedestrians. The addition of energy-efficient LED lighting, an at-grad pedestrian crosswalk, new planters, and additional outdoor seating all help to enhance the pedestrian and visitor experience. Finally, the renovation also includes additional metered parking spaces for automobiles. There are now 14 additional parking spaces along “Little Market Street” in areas that were previously restricted. There is a master plan for the area around 30th Street Station and other development plans are in the works in that area including Drexel University’s Innovation Neighborhood and the Cira Centre complex. Once completed, the work will redefine one of Philadelphia’s main gateways and create a new 21st century neighborhood out of a rail yard.

12 ConstructionTODAY

CHURCH OF JESUS CHRIST OF LATTER-DAY SAINTS TEMPLE, RESIDENTIAL TOWER AND MEETING HOUSE The Church of Jesus Christ of Latter-day Saints has been working steadily on its Mormon Temple. The Mormon Church has also unveiled plans to construct a 32-story apartment tower at 1601 Vine St. in Philadelphia, rounding out a major commitment that the Church of Jesus Christ of Latter-day Saints has made to the city. The new residential building will total 400,000 square feet and have 258 market-rate apartments as well as 13 townhouses. About 12,000 square feet of the development will be dedicated to street-level retail. In addition, a church meeting house will be constructed that will have a chapel, family history and cultural center and courtyard.

SPRING 2015 13

COVER

EAST MARKET REVITALIZATION AND THE GALLERY AT MARKET EAST RENOVATION East Market is a multiphase, mixed-use development on a 4.3-acre block at 11th and Market streets that had been referred to as Girard Square. The first phase of the project is underway and will include a 17-story tower that will have the first two levels dedicated to 160,000 square feet of retail space and the remainder an apartment structure with 322 units. It will also involve renovating the 200,000-square-foot family court building. Future phases will be built as the market demands. It is one of the key blocks that will help reinvigorate East Market Street once development is competed. There are big plans to redevelop the four-story, 1.4 million-square-foot Gallery at Market East into what some believe will be the “Fashion Outlets of Philadelphia at Market East.” Built in the late 1970s and early 1980s, the Gallery was one of the first urban malls, and though once on the frontline, is tired and old and in need of updating not only physically but with new tenants.

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(Excerpts and photos from Philadelphia Business Journal, “Transformations: 50 things that will change Philadelphia in 2015”) *Special Thank you to Turner Construction, P. Agnes, L.F. Driscoll, and Commercial Construction for content and photographic contribution.

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FEATURE

Building the Industry for Building Contractors: GBCA Celebrates a Storied History By Lauren Tosti GBCA, Director, Marketing and Communications

When the Master Carpenters and Builders Company was established in Philadelphia in 1891, the construction industry would never be the same. The formation of the organization that would later become known as the General Building Contractors Association (GBCA) laid the foundation for industry collaboration, accountability and advancement that is stronger than ever today. While the GBCA has a storied and successful 125-year history, the past several decades have been marked by significant positive change.

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Revolutionizing Industry Advancement

The GBCA came from modest beginnings. Consider that until the 1960s, the staff consisted solely of an executive secretary, who served in the role that we call president today, a receptionist and an accountant. Nonetheless, the Association had major goals for its work. As stated in 1960: Two of the most basic purposes of the Association since its founding in 1891 have been (a) to make membership in the Association a reasonable assurance to the public of the skill, integrity, and responsibility of its members; and (b) to advance the cause of the entire general building construction industry in the Philadelphia five-county area. In an effort to more effectively deliver on this mission, the Association model was revolutionized in 1964 with the introduction of the Industry Advancement Program (IAP). You may be surprised to learn that GBCA’s Industry Advancement Program, first conceived in the 1960’s by Jack McQuade, not only revolutionized the structure through which the Association delivers programs and services to stakeholders, but also served as a model for other trade associations across the country. Elevating Workforce Education

Initially, GBCA’s industry advancement efforts focused largely on education and training to elevate the level of skill and knowledge of the general building construction workforce. Early options were limited for construction education, but since 1961, GBCA has endeavored to conduct comprehensive training programs to ensure a highly skilled, productive and motivated workforce. GBCA traditionally supported apprenticeship programs at night to complement hands-on work in the field during the day. It also sponsored additional training courses at the Spring Garden Institute for construction office personnel. As Charles Cook, long-time GBCA member and recipient of GBCA’s first-ever Distinguished Director Award, recalls, “that was only the beginning. Since that time, GBCA has continued to build a robust education program by developing custom programming, partnering with leading educational institutions and more.” Building a Cornerstone for Safety

While safety has always been a concern for GBCA and its members, 1970 marked a turning point in our nation’s attention to safety with the enactment of the Occupational Safety and Health Act under the administration of Richard Nixon. “Certainly the effects of the Occupational Safety and Health Administration (OSHA) on construction have been significant,” says Cook. “At one point, some government officials viewed OSHA as a source of non-tax revenue for the federal government, and the Administration began imposing stricter

“ With some of the City’s best and brightest talent armed with the means to effectively advance the industry, the GBCA began to really enhance its value for members.” regulations and hefty fines for lack of compliance. As members defended themselves against excessive penalties, it created a competitive relationship between GBCA and OSHA inspectors that needed to be addressed.” Beginning with these early conversations, GBCA has worked through the years to develop a positive working relationship with OSHA as one of the cornerstones of its safety program. “Today, the relationship with OSHA representatives, GBCA staff and GBCA members is helping everyone improve the safety and health environment in what can be a very dangerous industry,” adds Cook. Improving Labor Relations

GBCA has long recognized the importance of its role in managing and negotiating labor policy agreements with the building trades—a role that is ever more crucial in times of volatility. For example, in the 1960s, says Cook, “Labor issues were often daily and wildcat strikes were not uncommon. At one point, there was even a five-week work stoppage as different trades struck consecutively when their agreements expired in sequence.” In this case, the Association worked diligently to align the trade agreements with mutual expiration dates to avoid another such catastrophe in the future. Labor relations took a positive turn in the 1970s when GBCA brought on a full-time staffer devoted to labor issues. This addition made a noticeable impact on lessening the number and severity of the issues. Labor and management relations only improved moving into the 1980s and 1990s as communication between the stakeholders also improved at the hands of GBCA. “While this improvement carried on through the beginning of the twenty-first century, economic history and challenges all point to the need to continue effective dialogue with owners, contractors and the trades,” adds Cook.

SPRING 2015 17

Credit: Photo courtesy Independence National Historical; Park VISIT PHILADELPHIA

FEATURE

Entering the World of Political Advocacy

Early political advocacy by GBCA was mainly on a national level, influenced by the Associated General Contractors of America. But as Tip O’Neill famously said, “All politics are local.” Through the 1970s, the Association had a casual influence on Philadelphia politics with an ally in Thatcher Longstreth, a long-time member of City Council and a two-time mayoral candidate. But by the early 21st century it had become apparent that GBCA could not deny the need to get more deeply involved in politics and the city and state levels. Since then, the staff has worked diligently to build relationships with government officials and represent the voice of members at the local, state and national levels.

“Without political advocacy and effective channels of communication with the government, members can always be burdened by ineffective reactions to genuine challenges. There are many opportunities available to improve our industry and also our city, state and nation, but when politicians make rules for an industry they do not understand without effective input from industry representative, the results can be burdensome and in some cases counter-productive or disastrous,” says Cook. He concluded, “GBCA’s history is certainly worth celebrating. The Association has made great strides in the 125 years since its founding and has built a strong foundation for the continued advancement of the industry today and into the future. This legacy is something GBCA and all of its members past and present should feel proud of.”

“ GBCA’s history is certainly worth celebrating. The Association has made great strides in the 125 years since its founding and has built a strong foundation for the continued advancement of the industry today and into the future.”

18 ConstructionTODAY

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215-567-6300 www.grahamco.com SPRING 2015 19

FEATURE

125th Annual Meeting On January 19, 2015, the 125th Annual Business Meeting of the General Building Contractors Association was held at the Union League of Philadelphia. The affair was attended by 350 of the GBCA’s members, political constituents, and industry thought leaders. GBCA’s President, Steven S. Lakin, kicked off the evening with a warm greeting and an introduction of the past-Chairman of the Board, Mack Stulb. Stulb then welcomed the incoming Chairman, and first female Chairman, Emily Bittenbender. Emily’s remarks were followed by AGC of America CEO, Stephen Sandherr and Philadelphia’s Mayor, the honorable Michael A. Nutter. The evening was punctuated with comments regarding the development of the city of Philadelphia, the history of the General Building Contractors Association and its importance to the continual economic and building development within the city. The momentous evening closed on a humorous note, as the “World’s #1 Barack Obama Impersonator,” Reggie Brown, took the stage. Brown’s performance featured doctored shots of Mayor Nutter hanging out with Obama in the 70’s, and a full comedic sketch poking fun at Rocky. On a serious note, Brown congratulated Emily Bittenbender for her induction as Chairman. The dinner had a special focus on the celebration of the

20 ConstructionTODAY

General Building Contractors Association’s 125th Anniversary year, featuring highlights from 2014’s marketing campaign as well as a special advertisement in the Philadelphia Inquirer, thanking all owners, developers, architects, engineers, designers and members-at-large for their dedication and for choosing GBCA contractors to bring their visions to life. The hashtag: #ChooseGBCA, which will now be seen across all advertising placements, could not be more appropriate. Of note during the dinner presentation was the presentation of the Distinguished Director Award to Charlie Cook. Charlie has been in the construction industry for 50 years. He first served on the Education Committee for the GBCA then advanced to the Board of Directors. Charlie accepted his award with grace, saying, “The GBCA is made up of really great talent making major contributions to the industry. Helping this organization has always been a pleasure.” He humbly accepted the award on behalf of all of the Directors, saying “Our motive is to improve our industry, and in so doing, improving our world. We are in a very competitive industry where we can win or lose by tenths of a percent. Yet, we all come together for the GBCA, knowing that as good as this organization (and our industry) can be, it can always be better.” His service and dedication are immeasurable, making him the perfect candidate to receive the first-ever Distinguished Director Award.

SPRING 2015

FEATURE

Welcoming Emily Bittenbender

Emily L. Bittenbender Managing Partner, Bittenbender Construction, LP

Emilyâ&#x20AC;&#x2122;s career focus has been the design, construction and renovations of public buildings and spaces. Early in her career she was hired by the Rendell Administration to jumpstart the paralyzed system of completing over 300 backlogged capital construction projects within city government. In January 2000, Emily was hired as the Vice President of Design & Construction for the National Constitution Center to lead a team once again in the design and construction of a $137M museum in Independence Mall. After the completion of the National Constitution Center in 2003, Emily started Bittenbender Construction, LP, a commercial general contractor and construction management firm specializing in the new construction and renovations of museums and historic sites, retail, higher education and corporate fit out projects (the only woman owned, union affiliated general contractor in the local area). In 2009 Emily launched Philadelphia Carpentry Systems, LP, a woman owned carpentry and exhibit Installation Company, providing quality carpentry services to general contractors and building owners in the Philadelphia region. In 2011, Emily was awarded The Greater Philadelphia Chamber of Commerce Excellence Award for Small Business Person of the Year. And, in 2015, Emily was inducted as the first woman chairperson of the General Building Contractorâ&#x20AC;&#x2122;s Association. Welcome Emily!

22 ConstructionTODAY

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SPRING 2015 23

FEATURE

Contractor’s Corner What is your biggest regret? My biggest regret is not spending more time talking to my father the night before he passed.

NAME: Tom Slater TITLE: C.E.O. / President of Robert Slater Inc. AGE: 50 COMPANY, CITY: Schwenksville, PA

What award or honor are you most proud of? My father passing the family business along to me and having the confidence in me to carry on his legacy.

YEARS IN FIELD: 34 EDUCATION: Perkiomen Valley High School BIRTHPLACE: Schwenksville CITY OF RESIDENCE: Schwenksville

What word or phrase best describes you? Loyal

FAMILY: Wife Karen, Children Tommy, Adam and Alyson

What would be your first choice for a new career? Electrician

FIRST JOB: Laborer for Robert Slater Inc. RANDOM FACT ABOUT YOURSELF: : I am big on trying to find American made products

What is your business motto? Take care of your business and employees and they will take care of you. When did you first become interested in your career path? Since my father started this business before I was born I was interested in it at a young age. Especially since I spent a lot of time with my dad when I was younger riding around in the trucks with him moving equipment on the weekends, and helping him to clean the equipment and trucks. What is the most rewarding part of your job? When I started the most rewarding part of my job was getting to work alongside my father on a daily basis. However that has changed in recent years due to the next generation coming

24 ConstructionTODAY

Favorite way to spend your free time? I love spending and enjoying time with my family. along and it is passing my knowledge and interest along to them. What is your biggest daily challenge? I would have to say keeping my employees and family gainfully employed and competing in today’s harsh economic environment. How do you inspire your employees? By teaching them to take pride in every task they perform as well as giving them responsibility so when they succeed they feel they have reached their goal. How do you keep your competitive edge in today’s market? By taking pride in our work and giving our customers high quality work for an honest competitive price.

What goal are you currently striving to achieve? My top business goal is to build a prosperous company that I cannot only pass along to the next generation, but future generations as well by passing my knowledge and skill along to my sons (Tom and Adam) and nephew (Eric). What project are you currently working on? Albert Einstein Medical Center Site Lighting Improvements, and the CHOP Cell Tower Project. Do you have a life motto? Follow the path of a leader in hopes that future generations can follow a successful path. What’s the most important lesson you’ve learned in life? To keep an open mind because there is a new lesson to be learned every day.

Favorite vacation spot? Myrtle Beach, South Carolina Book that has inspired you most? The Bible Favorite movie or TV Show? My favorite movies would have to be the James Bond series. What kind of car do you drive?Mostly a 2008 Ford Expedition, but I do share a 1970 Ford Mustang with my son Tommy.

Here’s what’s coming up at the GBCA… Space is limited so register today!

Check out the great opportunities for professional developments, safety training, education, and networking at GBCA. For inquiries regarding event sponsorship opportunities contact Lauren Tosti, 215.568.7015, ltosti@gbca.com.

For event details visit gbca.com/events JUNE

June 1, 2015 GBCA Golf Outing Location: Whitemarsh Valley Country Club Time: 11:00 am – 8:00 pm Cost: $125-325 June 11, 2015 Eggs with OSHA Location: Sonesta Hotel, 1800 Market Street, Philadelphia, PA 19103 Speakers: Dean McKenzie, Deputy Director, Directorate of Construction, OSHA Time: 7:30 am – 8:00 am Registration, Networking & Breakfast 8:00 am – 10:00 am Program Cost: $50 Members, $50 Mid-Atlantic Safety Council/Delaware Safety Council June 11, 2015 Alex’s Lemonade Stand Location: GBCA, 36 South 18th Street, Philadelphia, PA 19103 Time: 10:00 am – 2:00 pm

EVENTS

June 17, 2015 Educate Yourself: Laser Scanning Lunch & Learn Location: Torcon, Navy Yard Time: 12:00 pm – 2:00 pm Speakers: Sam Arabia, Director of BIM Services, Torcon Cost: $15 Members, $10 CLC Members, $25 Non-Members

June 23, 2015 Diversity & Inclusion: Why it’s vital to our business. Location: Dornsife Center for Neighborhood Partnerships, Ryan Hall, Room S209, 3509 Spring Garden Street, Philadelphia, PA 19104 *Free parking is available in the onsite lot, with the entrance on Brandywine Street directly behind Dornsife. Speakers: Angela Dowd-Burton, Executive Director, Office of Economic Opportunity, City of Philadelphia Bob Francis, Chief Facilities Officer, Drexel Universit; Paul Horning, VP of Preconstruction, Clemens Construction Company Inc.;Dr. Lucy Kerman, Vice Provost, University and Community Partnerships, Drexel University Time: 8:00 – 8:30 am Registration, Networking & Breakfast 8:30 – 10:00 am Panel Discussion Cost: $20 Members, $35 Non-Members

SEPTEMBER

September 14, 2015 PAC Cigar Night Location: Ashton Cigar Bar, 1522 Walnut Street, Philadelphia, PA 19102 Time: 5:30 – 7:30 pm

September 24, 2015 GBCA/Carpenter’s Company Joint Mixer Location: Carpenter’s Company Time: 5:30 – 7:30 pm Speakers: None Cost: FREE September 29, 2015 Leading Strong Teams Location: GBCA, 36 South 18th Street, Philadelphia, PA 19103 Time: 7:30 – 9:30 am Speakers: Mike Iorio, Dale Carnegie Cost: $50 Members, $100 Non-Members

OCTOBER

October 13, 20, 27, 2015 Construction Accounting for Non-Accountants Location: CBIZ, 401 Plymouth Road, Suite 200, Plymouth Meeting, PA 19462 Time: 3:00 – 6:00 pm Speakers: Tony Stagliano, CBIZ David LaRosa, CBIZ Cost: $75 Members, $150 Non-Members

NOVEMBER

November 5, 2015 Construction Excellence Awards

September 15-17, 2015 The Executive & Supervisors Safety Leadership Briefing Location: TBD Time: TBD Speakers: Charles Taylor Safety Group Cost: TBD

SPRING 2015 25

FEATURE

ACE Mentor Program – Shaping the Future of Design and Construction by Tiffany Millner, AIA, NOMA

The ACE Mentor Program of Eastern Pennsylvania is the local affiliate of a national non-profit organization. An acronym for Architecture, Construction, and Engineering, ACE engages, excites, and enlightens high school students to consider or pursue careers in the integrated construction industry through mentoring, scholarships, and grants. Students are recruited from public and private high schools in Philadelphia and the suburbs, with special effort made to reach traditionally underrepresented women and minorities. As the design and construction industry’s fastest-growing high school mentoring program, ACE reaches over 8,000 students annually. Nationally, over $12 million in scholarships have been awarded and countless young lives have been positively affected. ACE relies on a network of volunteer mentors ranging from architects and engineers to construction managers, contractors, and subcontractors. The program emphasizes all aspects of design and construction industry careers—from professional college career paths to those in the building trades. By informing and exposing students to the myriad construction career options, ACE is helping to build a talented construction workforce for the future. ACE follows a group-mentoring model. Eight to ten mentors representing different disciplines serve each team of 20-30 students. From November until May, teams meet biweekly after school to experience a comprehensive design and building process. Teams visit mentors’ offices, take field trips to construction sites, and gather in a year-end event to present their projects to assembled mentors, family, and friends, much as an actual design team presents to clients. The program offers exposure to all facets of ACE careers, from experiencing offices and jobsites to creative design and collaboration. ACE Eastern Pennsylvania especially needs contractor and subcontractor mentors to contribute their knowledge and experience to our teams. Mentors are welcome to sign up as individuals; ACE will assign mentors to teams where their expertise is most needed.

26 ConstructionTODAY

Paul Levy with his award (flanked by presenter Robert D. Lane, Jr. of Stevens & Lee on the left and ACE Scholarship Breakfast Committee Chair Mark Celoni, PE, of Pennoni on the right)

Local ACE Mentors speak highly of the program:

“Today’s ACE student will be tomorrow’s engineer, architect, or construction professional. These students will soon become peers in our industry,” said Branden V. Grove, CCA, PMP, Consulting Manager of Talson Solutions, LLC. “Stronger students make stronger professionals, who help my industry succeed.” Kwabena Addo-Boateng, PE, LEED AP, a senior project manager at Amec Foster Wheeler Environment & Infrastructure, Inc., adds, “Being a part of the ACE program is gratifying in many ways. It provides you with the platform to serve, give back to the community, and the professional relationships you build with your peers through this program are just priceless.” If you would like to get involved, visit http://www.acementor. org or contact the ACE Eastern Pennsylvania Affiliate Director, Tiffany Millner, AIA, NOMA, at 215-806-4817 or easternpa@acementor.org.

Photo Courtesy: Tom Crane

The Karabots Pavilion at The Franklin Institute

Connor Barwin at the podium

WELCOME

NEW MEMBERS! Advanced Specialty Contractors, LLC and Philadelphia Carpentry Systems, LLP Henkel and Son LLC Van Hawk Painting Company, Inc. Colony Hardware Corporation SPRING 2015 27

FEATURE

Contributing to the Regionâ&#x20AC;&#x2122;s Growth By Micheal Armento, Vice President, Torcon, Inc.

28 ConstructionTODAY

As someone who was born and raised in Philadelphia, it has been very rewarding to complete numerous projects in and around the city, contributing to the region’s growth. Throughout my thirty-five years in the construction industry, I have seen Philadelphia neighborhoods that were once downtrodden become revitalized and transformed into lively communities. Commuting from my home in Center City to Torcon’s office in the historic Navy Yard, I can really see why students and young professionals, as well as families, are falling in love with the city as it resurges into a bright and beautiful commercial hub. The construction industry is typically a good indicator of how strong the city’s economy is going. According to Labor Department numbers, Philadelphia is showing continued growth as it was recently ranked third in the country in new construction jobs. The city and the surrounding counties of Montgomery, Bucks, Chester and Delaware added 8,500 jobs year-over-year. Torcon’s own job openings reflect this growth in the industry and the economy. In fact, the mid-Atlantic Employers’ Association states that 57% of employers in the region have plans to increase their staff. Torcon is currently overseeing many construction projects that are already underway or in the planning stages, particularly in healthcare and higher education. We are in the process of expanding St. Christopher’s Hospital for Children with the vertical construction of a 135,000 square foot high-tech Critical Care Tower. Another facet of the hospital’s expansion was the completion of the Center for the Urban Child, a brand new two-floor, 30,000 square foot medical office building. This facility will provide social and medical services to children with various health issues. Elsewhere within the healthcare industry, The University of Pennsylvania Health System has plans for a new $1.5 billion tower that could house 700 patient beds, 50 operating rooms and additional medical services. Such a facility would give greater access to renowned medical care and create a significant amount of new jobs for the community. Many of the city’s universities are updating their campuses with energy efficient technologies, new landscape upgrades

and student housing. Torcon has worked on many projects for the University of Pennsylvania, including the ongoing $200 million Century Bond initiative. Since 2012, we have been a partner to the university as they work to improve energy efficiency of their buildings on campus through preconstruction and construction management efforts. Torcon is providing pre-construction services to Villanova University for a large scale expansion project on Lancaster Avenue that will add a residential housing facility, a parking structure and a Performing Arts Center. We previously worked on Villanova’s active campus to transform and improve the university’s landscape by making it more pedestrian-friendly. This project, which was completed over the course of three years, was recognized as “The Best Green Project” by the General Building Contractors Association in its 2014 Construction Excellence Awards program. The multitude of cranes outstretched over Philadelphia’s rooftops illustrate that we are in the midst of an apartment housing boom. 2,091 units have been added to the market with an additional 2,626 apartments on their way according to data supplied by Center City District. The city’s leading real estate firms are spearheading this expansion with inspiring projects. Dranoff Properties has opened SouthStar Lofts on South Broad Street, while Brandywine Realty Trust is planning a new 28-story mixed-use tower on 1919 Market Street. According to the National Multifamily Housing Counsel’s data, Philadelphia is not among the top ten cities in terms of total apartments, despite being one of the top five DMAs, which shows there is certainly the room for further development in that sector. It’s a very exciting time to be living in Philadelphia, and Torcon is proud to be part of this strong growth. Michael Armento has more than 35 years of professional experience. Mike has primary responsibility for Torcon’s growth and operations in the Philadelphia office. He is active in the local industry, including the GBCA, the Subcontractors Association of Delaware Valley, Carpenter’s Company, and the ACE Mentoring program. SPRING 2015 29

FEATURE

AGC Update Source: The Association of General Contractors Date: January 21, 2015

Eighty Percent of Construction Firms Plan to Expand Headcount in 2015 as Contractors Foresee Growing Demand in Most Market Sectors Eighty percent of construction firms plan to expand their payrolls in 2015 while only 7 percent expect to reduce headcounts according to survey results released today by the Associated General Contractors of America. The survey, conducted as part of Ready to Hire Again: The 2015 Construction Industry Hiring and Business Outlook, indicates that most contractors are optimistic about the year ahead and ready to expand, but will have to cope with challenges including worker shortages and regulatory burdens. “Contractors are extremely optimistic about the outlook for 2015,” said Stephen E. Sandherr, the association’s chief executive officer. “Indeed, if their predictions prove true, industry employment could expand this year by the most in a decade.” Sandherr noted that the number of firms planning to add employees—80 percent—in 2015, is significantly higher than in 2014, when only 57 percent of firms report they added to their total headcount. However, many firms that plan to hire this year expect to make only modest increases, with 90 percent of the firms that expect to add employees reporting they will expand by one-quarter or less this year. New Equipment

Seventy-nine percent of firms report they plan to purchase new construction equipment in 2015 and 81 percent plan to lease new equipment. However, the scope of those investments is likely to be limited, with roughly two-thirds of firms that plan to buy or lease equipment reporting they will invest $250,000 or less. Better Credit Conditions in 2015

Credit conditions appear to be less of a concern for contractors in 2015 as they were during the height of the downturn, association officials added. Only 7 percent of firms report having a hard time getting bank loans this year while only 24 percent report customers’ projects are being delayed or cancelled because of tight credit conditions. Challenge: Skilled Labor

“Despite the overall optimism, some challenges remain for the industry,” said Ken Simonson, the association’s chief economist. “In particular, as construction firms continue to expand, they will continue to have a difficult time finding enough skilled construction workers.”

30 ConstructionTODAY

Among respondents who are trying to hire workers, 87 percent report having a hard time filling key professional and craft worker positions. In particular, 76 percent of firms that are hiring report having a hard time finding qualified craft workers while 62 percent say the same about professional positions such as project managers, supervisors and estimators. Potential Impact of Federal Regulations

Large numbers of contractors are worried about the potential impact a number of proposed new federal regulations will have on their business operations, Sandherr said. Thirty-seven percent of respondents report they are concerned about the Environmental Protection Agency’s efforts to expand their jurisdiction over wetlands. Thirty-six percent of contractors worry that new regulations forcing contractors to keep detailed records of all job applicants will have a negative impact. And 35 percent are worried about the impact of proposed new silica rules. Other Priorities for Washington

Association officials added that survey respondents would prefer that Washington officials work on other priorities. Seventy-six percent of firms reported listed having Washington find ways to make it easier to prepare the next generation of skilled workers as a top priority. Sixty percent want Congress to reform the tax code and 59 percent want Congress to repeal all or part of the Affordable Care Act. Sandherr added that association members and officials also will continue to push for action on the measures outlined in the association’s Workforce Development Plan and would also work to get the Obama administration to rethink its current regulatory approach. “With a little luck and a lot of effort, we will make sure the construction industry has the support it needs to continue expanding in 2015 and beyond,” Sandherr said. The Outlook was based on survey results from over 900 construction firms from 48 states and the District of Columbia. Varying numbers responded to each question. Contractors of every size answered over 30 questions about their hiring, equipment purchasing and business plans.

READY TO HIRE AGAIN: THE CONSTRUCTION HIRING AND BUSINESS OUTLOOK OPTIMISM CONTINUES fOR THE CONSTRUCTION INDUSTRY IN 2015! STRONG MARKET EXPECTATIONS IN 2015

This is the first time

since the AGC Outlook survey started in 2009, that a majority of contractors reported expectations the market will grow in the current year!

More than 4 out of 5

firms expect the construction market to grow again this year and 2016

Industry growth expectations: 19% 21%

80%

44%

of firms plan to expand their payrolls this year

of firms will pursue projects outside of their traditional geographic market areas

60%

of firms say they will utilize lean construction principles on their projects and/or operations

10% 1%

Payroll expansion: n plans to expand payroll by 1-26%

n growth this year n growth in 2016

60%

READY TO HIRE AGAIN IN 2015

1 in 4 firms expect the

n growth in 2017 or later

amount of their projects involving BIM to increase

Compared to 2014, the dollar amount of projects expected to be complete in 2015 yielded an overall net increase in most construction segments including:

n plans to expand between 26-50% n plans to expand more than 50%

90%

If predictions are accurate, construction employment should expand at a faster rate than in 2014

Purchasing and Leasing Equipment:* More than 3 out of 4

firms plan to purchase and/or lease construction equipment

Highway

Manufacturing

K-12 Schools

Hospital/Higher Education

35% will purchase $100,000 or less

Water/Sewer

27% will purchase will purchase $100,000-$500,000 17% will purchase lease $500,000 or more 39% will lease $100,000 or less 25% will lease $100,000-$500,000

Retail, Warehouse, Lodging

Power/ Energy

Public Building

Private Office

Other Transportation

17% will lease $500,000 or more

10%

20%

30%

40%

*19% do not plan on any leases and 21% do not plan on any purchases

Information provided by the 2015 AGC of America Business Hiring and Economic Outlook Survey

“ With a little luck and a lot of effort, we will make sure the construction industry has the support it needs to continue expanding in 2015 and beyond.” — Stephen E. Sandherr, CEO of AGC

SPRING 2015

FEATURE

Holiday Open House

Photos: Bree Ashton

On December 4, 2014, the General Building Contractors Association opened its doors and welcomed Active, Associate and Affiliate members to enjoy a toast to the Holiday season and celebrate the close of a successful 2014. The event was attended by GBCA staff, Board of Directors and Members who were enjoyed a night of good food and drink. Members were able to mix-and-mingle with one another, and GBCA staff took the opportunity to get to know member constituents. All in all, the Holiday Open House was a well-deserved celebration!

Membership Dinner On February 18th, GBCA hosted its quarterly Membership Dinner Meeting at Del Friscoâ&#x20AC;&#x2122;s Steakhouse. The event was attended by nearly 100 of GBCAâ&#x20AC;&#x2122;s members. This exclusive event was an opportunity to network and hear former Congressman Robert E. Andrews share his insights into the current political environment in Washington. He discussed the recently passed multi-employer pension reform legislation and its impact on Taft-Hartley Fund contributing employers.

32 ConstructionTODAY

CLC Hard Hat Tour On Thursday, April 15th, the Construction Leadership Council of the GBCA hosted an exciting hard hat tour of the one of the most talked about new building projects in the City of Philadelphia. The Comcast Innovation and Technology Center. Mike Richezza, of B. Pietrini & Sons, gave an informative presentation to the group of about 50 construction and development professionals. The building will be 59 stories tall, or 1,121 ft. (341.7 m), and topped by a 222-room luxury hotel. When finished, the Comcast Innovation and Technology Center will be the tallest building in Philadelphia. Following the hard hat tour the group walked over to the City Tap House for drinks, tapas, mingling and networking. B. Pietrini & Sons is the concrete subcontractor for the project. The company is among the largest concrete construction contractors in the tri-state area servicing Pennsylvania, New Jersey and Delaware. The L.F. Driscoll Company of Bala Cynwyd, Pa., is the construction manager for the project. Thornton-Tomasetti, one of the worldâ&#x20AC;&#x2122;s leading structural engineering firms in hi rise construction, designed the structural engineering for the new tower from its Philadelphia office.

SPRING 2015 33

DEPARTMENTS

MEMBERSHIP UPDATES

Taking Advantage of your GBCA Membership By Angela Louro, Manager, Education and Professional Development

The benefits of GBCA membership span beyond our advocacy, education, labor, and safety offerings. In an effort to make our members aware of these external benefits, we are introducing a new section to Construction Today that will highlight additional benefits you can take advantage of through your GBCA membership. The Greater Philadelphia Chamber of Commerce (GPCC) is the premier advocate of the region’s business community, representing members in 11 counties across three states with one voice. Through a strong relationship and dynamic involvement by GBCA, Active Members who are not members of the GPCC receive a complimentary Entrepreneur level membership at the Chamber. In addition, GBCA Associate and Affiliate Members receive access to the Chamber’s Benefits Only membership which can assist with managing your group health plan. The benefits of an Entrepreneur level membership are encompassed below including a member discount program, a cost savings program, access to public sector bids through eBid Connect, and additional exposure for your organization. Consider contacting the Chamber today to get started taking advantage of another great GBCA benefit!

Entrepreneur Level Membership at the Greater Philadelphia Chamber of Commerce includes: • Access the Chamber’s Customer Service Center and take advantage of the core benefits of membership • Receive a free listing in the Membership Directory, the most visited section on the GPCC website (7,000 page views/ month) • Post press releases, events, job opportunities and more for free on the online Bulletin Board and Members’ Event Calendar ($400.00 value) • Submit an article to GPCCNews, monthly e-newsletter with 15,000+, highlighting your business expertise or showcasing your company’s commitment to the community • Receive daily email notifications of public sector projects and RFPs in the Greater Philadelphia region through the Chamber’s eBid Connect service ($2,200.00 value) Check it out at: www.gpcc.com/ebidconnect. A great benefit of GBCA membership! There are currently over 700 bid and RFPs in the ‘Construction Services and Building Supplies’ category! • Boost your reputation and create brand awareness by registering for the Speakers’ Connection

Check it out at: www.gpcc.com/ebidconnect A great benefit of GBCA membership! There are currently over 700 bid and RFPs in the ‘Construction Services and Building Supplies’ category!

34 ConstructionTODAY

• Meet new customers, profit from business intelligence, share best practices at over 150 networking, community service, public policy and professional development events • Connect with fellow members, comment on business topics, view photos and video and more on the Chamber’s blog, and on Facebook, Twitter, YouTube, Flickr, and LinkedIn • Benefit from the Chamber’s relationships with local, state, and federal elected officials to cut through the red tape of doing business and meet with public officials at GPCC Policy events • Impress clients by hosting events or meetings for free in the Chamber’s conference rooms • Reduce expenses and improve your bottom line through the Chamber’s Cost Savings Programs, which include exclusive discounts on office supplies, shipping, credit card processing and more

EDUCATION AND PROFESSIONAL DEVELOPMENT

Distinction through Continuous Improvement By Angela Louro, Manager, Education and Professional Development

The Supervisory Training Program

In today’s world companies are continually adjusting to ever-changing business conditions, especially in construction. Communication and problem-solving skills are as crucial as blue print reading and estimating. Employees are forced to make timely decisions and act independently as problems arise. The General Building Contractors Association (GBCA) recognizes the importance of continuous education and training to our industry. At GBCA we believe that training is one of the key determinants to ensure a company’s success. Excellence is achieved through training, and can often be what sets one firm’s performance apart from another. GBCA is a proud supporter of the Associated General Contractors of America (AGC)’s Supervisory Training Program (STP) at the Carpenters JAC facility in Northeast Philadelphia. STP is a construction-specific training curriculum developed, updated, and field-tested by and for contractors. The program consists of 10 units, and 2 overview units, that focus on the knowledge and skills that every supervisor must have to be an effective manager of people, time, equipment, and materials. The classes focus on both “hard” and “soft” skills for success. Contract documents, scheduling, and controlling project costs are as important as persuasion and negotiation, motivating a crew, and effective listening. STP courses were designed for anyone on a construction jobsite in a supervisory role—from the new supervisor and foreman to the experienced superintendent. STP promotes an interactive training atmosphere among course participants and employs some of the most dynamic instructors in the construction industry.

Supervisory skill—or the lack of it—directly affects every company’s bottom line. Each day, decisions made by every foreman and superintendent are crucial to the success or failure of every construction project. You make your money in the field, and STP can help you improve your organization’s bottom line. The lead instructor of GBCA’s STP classes is Frank McGovern, a seasoned construction veteran with years of hands on experience working for some of the region’s premier companies. Guest speakers and site visits are used to relate classroom teaching to real projects. Mr. McGovern uses a project he supervised, The Gateway Center in Plymouth Meeting, PA, to help illustrate key aspects of all ten classes, and make the STP relatable. Mr. McGovern uses a Total Quality Management (TQM) approach to teach the STP course. TQM focuses on continuous improvement and customer satisfaction as a way of working and thinking. By stressing the need for quality, productivity will increase and jobs are completed on time and on budget. Motivated participants can take up to six classes per year, allowing completion of the STP in under two years. All classes are in the evening, after work hours, and graduates receive certificates of completion at GBCA’s Annual Meeting each year. There are currently just under 30 individuals pursuing the STP program at The Carpenters Apprentice School of Philadelphia & Vicinity. The units can be taken in any order, and are continuously offered throughout the year on www.carpentersofphila. org. Call 215-824-2300 for assistance registering. GBCA pays instructor costs as well as student textbook expenses. Continued education and training are some of union construction’s biggest attributes and we at GBCA are happy to contribute to this through our sponsorship and support of the STP. SPRING 2015 35

DEPARTMENTS

SAFETY FIRST

What Does ‘Safety’ Really Mean By Don Ashton, Director of Safety Services

As GBCA’s Director of Safety Services I am tasked with assisting our members with their needs in the world of ‘Safety’. It is important to recognize, however, that ‘Safety’ means different things to different people. The Merriam-Webster dictionary defines ‘Safety’ as “freedom from harm or danger.” This implies that if everyone, from the company owner down to the labor force, works in a ‘safe’ manner, the worksite will be free from harm or danger. This definition is clearly not in sync with Murphy’s Law. Murphy’s Law is inevitable. It does not matter how good the safety program is, or the intent of all the personnel the program addresses… If something can go wrong, you should presume that it will. If the safety program is based on the total elimination of harm or danger it is doomed to failure.

Every venture is affected by RISK. The Merriam-Webster dictionary defines RISK as “the possibility of loss or injury” and “someone or something that creates or suggests a hazard.” The best safety programs address control of RISK rather than attempting to eradicate all RISK from the worksite. The basics of risk assessment require the company to review the functions of the job for inherent hazards. What is the hazard? If a worker is exposed to that hazard what is the potential harm or danger? How often could workers be exposed to the hazard? What are the costs to remedy the hazard? The picture on the below demonstrates what can happen when ‘Safety’ is defined as “freedom from harm or danger.” This cowboy is hopefully ‘safe’ from all harm. However, upon further inspection, other risks are involved. What if the safety net is attached improperly; is frayed or torn? Shouldn’t the cowboy keep both hands on the reins and grab-rail? What if he has to flip down the sunglasses? Do the headlights and mirror obscure his vision?

Cowboy AFTER O.S.H.A Inspection

36 ConstructionTODAY

As a viable company there must be a recognition that resources are limited. The attempt to absolutely eliminate all risk is not cost-effective and, in fact, is an inefficient safety program.

PPE is oftentimes a short term fix and may seem to be cheap and cost-effective. However, in the long run, controlling the hazard may actually prove to be the better option.

Assess the risks. Most importantly, if the hazard can seriously injure or kill a worker it must be eliminated or controlled.

For example: Ear plugs and headphones may be the immediate answer to a noisy compressor however, is it possible to install noise dampening barriers? Can the compressor be moved to a different location? Can workers be assigned to another task, away from the compressor?

For example: Falls are the #1 killer in Construction. Fall protection procedures MUST be implemented whenever employees are exposed to a fall of 6 feet or more above a lower level. Train employees to recognize hazards. If a worker is exposed to a hazard infrequently, it is IMPERATIVE that the worker be trained to recognize the hazards, the policies and procedures used to avoid the harm or danger. For example: A worker is tasked with an annual equipment maintenance chore. Does the chore require confined space entry? Lockout/Tagout? Specialized tool use? Costs must be assessed. What is the most cost-effective way to reduce risk and control losses? Keep in mind that OSHA requires that companies attempt to take corrective engineering steps first, administrative controls second, and then Personal Protective Equipment (PPE).

If you want an effective safety program then the MerriamWebster dictionary has an additional definition I find more apropos. It defines ‘Safety’ as “the condition of being safe from undergoing or causing hurt, injury, or loss.” Companies that adhere to this definition recognize that a good safety program requires the employer to assess their worksite dangers, take the necessary steps to reduce risk and control losses, and train their workers to recognize, avoid, and report hazards. Please contact Don Ashton, Director/Safety Services for GBCA at 215-568-7015 or at dashton@gbca.com for additional assistance.

Constructive Solutions

COMMERCIAL LITIGATION CONSTRUCTION LAW

REAL ESTATELITIGATION COMMERCIAL

BUSINESSTRANSACTIONS TRANSACTIONS BUSINESS

DEVELOPMENT CONTRACTING COMMERCIAL REAL ESTATE & FINANCE

LABOR &&EMPLOYMENT EMPLOYMENT LABOR

PENSIONS/WEALTH PLANNING PENSIONS/WEALTH PLANNING

1700 Market Suite 3100 1700 Market Street, Street, Suite 3100

Philadelphia, PA Philadelphia, PA19103 19103 T 215 563 2400 F 215 563 2870 JacobyDonner.com

JacobyDonner.com

SPRING 2015

ON DEPARTMENTS TOPIC

LEGISLATIVE CORNER

SB145/ HB 473 Mechanics Lien Law

2013–2014 SOUTHEASTERN PENNSYLVANIA GENERAL ASSEMBLY LEGISLATIVE SCORE CARD “When we’re debating any sort of legislation affecting building codes, lawmakers and state officials must be cognizant of the effect those changes will have on contractors. That’s why improving the Department of Labor and Industry’s Uniform Construction Code review process was so important. The additional time devoted to the process will help ensure the Review and Advisory Council can approve only those changes that will protect the public without overburdening the people who put in the hard work to build safe, long-lasting infrastructure.”— SENATOR MCILHINNEY

“The Mechanics’ Lien Law, which I sponsored, is important to the commercial construction industry because it provides transparency in the contracting and construction process and a means to secure payment for work performed and materials furnished.”— REPRESENTATIVE KILLION

38 ConstructionTODAY

Office

Name

District

Party

Signed Into Law

Senate House

Chuck McIlhinney

Supported

Thomas Killion

168

Sponsored

House

Frank Farry

142

Sponsored

House

Tom Murt

152

Sponsored

Senate

Tommy Tomlinson

Supported

House

Stephen Barrar

160

Supported

House

Bill Adolph

165

Supported

House

Gene DiGirolamo

Supported

Senate

Stewart Greenleaf

Supported

House

Joe Hackett

161

Supported

Senate

Arthur Haywood

Supported

House

Nick Miccarelli

162

Supported

House

Nicholas Micozzie

163

Supported

Senate

Dominic Pileggi

Supported

House

Todd Stephens

151

Supported

Senate

Larry Farnese

Supported

Senate

Vincent Hughes

Supported

Senate

Daylin Leach

Supported

Senate

Thomas McGarrigle

Supported

Senate

Christine Tartaglione

Supported

Senate

Anthony Williams

Supported

Senate

Shirley Kitchen

Supported

House

Michael McGeehan

173

Supported

House

John Taylor

177

Supported

House

Rosita Youngblood

198

Supported

House

William Keller

184

Supported

House

Brian Sims

182

Supported

House

Curtis Thomas

181

Opposed

House

Greg Vitali

166

Opposed

House

Louise Bishop

192

Opposed

House

Brendan Boyle

170

Opposed

House

Kevin Boyle

172

Opposed

House

Angel Cruz

180

Opposed

House

Maria Donatucci

185

Supported

House

Thaddeus Kirkland

159

Did Not Vote

House

Vanessa Brown

190

Opposed

House

Michelle Brownlee

195

Opposed

House

James Clay

179

Opposed

House

Mark Cohen

202

Opposed

House

Pamela DeLissio

194

Opposed

House

Dwight Evans

209

Opposed

House

Jordan Harris

186

Opposed

House

Stephen Kinsey

201

Opposed

House

Jose Miranda

197

Opposed

House

Mike O’Brien

175

Opposed

House

James Roebuck

188

Opposed

House

John Sabatina

174

Opposed

House

Steve Santarsiero

Opposed

House

Rondal Waters

191

Opposed

House

John Galloway

140

Opposed

House

Cherelle Parker

200

Opposed

House

Tim Briggs

149

Opposed

House

Mary Jo Daley

148

Opposed

House

Tina Davis

141

Opposed

House

Madeleine Dean

153

Opposed

House

Steven McCarter

154

Opposed

House

Edward Neilson

169

Opposed

HB 784 Construction Permit Extension

HB 1154 Stalking Bill

HB1513 Amended the Local Tax Enabling Act

HB 2124 PlanCon - Construction Reimbursment Law

SB 1023 Amended the PA Construction Code Passed Senate

Legislative Score

Signed Into Law

Passed House & Senate

Signed Into Law

Did Not Pass

Supported

No Senate Action

Sponsored

100

Supported

No House Action

100

Supported

No House Action

100

Supported

No House Action

100

Supported

No Senate Action

Sponsored

100

Supported

No House Action

Supported

No House Action

Supported

No House Action

Supported

No Senate Action

Supported

No House Action

Supported

No Senate Action

Supported

No House Action

Supported

No House Action

Supported

No Senate Action

Supported

No House Action

Supported

Opposed

No Senate Action

Sponsored

Supported

Opposed

No Senate Action

Sponsored

Supported

Opposed

No Senate Action

Sponsored

Supported

Did Not Vote

No Senate Action

Supported

Opposed

No Senate Action

Supported

Opposed

No Senate Action

Supported

Did Not Vote

Opposed

No Senate Action

Supported

Did Not Vote

Supported

Opposed

No House Action

Supported

Did Not Vote

Supported

Opposed

No House Action

Supported

Opposed

Supported

Did Not Vote

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Did Not Vote

Supported

Did Not Vote

No House Action

Supported

Opposed

No House Action

Supported

Did Not Vote

Supported

Opposed

No House Action

Supported

Did Not Vote

Supported

Opposed

No House Action

Supported

Did Not Vote

Supported

Opposed

No House Action

Supported

Opposed

Supported

Did Not Vote

No House Action

Supported

Opposed

Did Not Vote

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Supported

Opposed

No House Action

Supported

Opposed

Supported

Opposed

No House Action

Did Not Vote

Opposed

Did Not Vote

No House Action

Supported

Opposed

Did Not Vote

Opposed

No House Action

Supported

Opposed

No House Action

Supported

Opposed

No House Action

Supported

Opposed

No House Action

Supported

Opposed

No House Action

Supported

Opposed

No House Action

Supported

Opposed

No House Action

SPRING 2015 39

CONSTRUCTION NOTES

Amtrak’s Historic 30th Street Station Gets a Facelift

Superior Scaffold is proud to be providing scaffolding support for Amtrak’s renovation of their 30th St. Station in downtown Philadelphia. The historic building that opened in 1933 will get a much needed facelift. It’s an incredible looking structure and can you just imagine what it’s going to be like when it’s finished? Amtrak wants to make the neoclassical 30th Street Station a more welcoming gateway to West Philadelphia and Center City. The 30th Street Station handles 120 Amtrak trains, 960 SEPTA trains, and 26 NJ Transit trains each weekday. More than four million Amtrak passengers went through the station last year. Amtrak wanted an overhead protection system in place for their 10 year-long remodel. Not only did it have to last 10 years in the elements but it had to support the scaffold necessary to do the renovation work. And it needed to be built on top of an intricate framework of Jersey barriers that would help protect pedestrians as well as distribute the weight load over the mostly

40 ConstructionTODAY

hollow train station. It was a much more complicated project than it seems. Superior’s first order of business was to erect canopies and sidewalk protection around the entire building—and that’s a good sized building. The station is a hustling, bustling metropolis all of its own with cars, buses, and lots of people all the time. Not only did the canopy have to protect customers but it had to withstand the elements and traffic for 10 years and be able to handle multiple phases of renovation. The first challenge was what material would last 10 years in the harsh elements of Philadelphia. Amtrak originally proposed an aluminum bridge column design but we decided on a system scaffold for quick installation and to hold down the cost. Amtrak’s engineer required galvanized steel beams. But since galvanized steel scaffolding isn’t something that you see everyday we had to have it built to spec. We worked with the Custom Iron Shop in Wilmington, DE to provide us with all of the galvanized steel beams and corrugated metal panels. The

overhead protection would also have to be able to handle the additional weight of scaffolding once the exterior façade renovation started so it was all designed with a 300psf rating. The second challenge was the Jersey barriers Amtrak wanted all the way around the building—for two purposes. One, they would help protect the scaffold from the sheer amount of auto and pedestrian traffic that travels through the station each day. And two, much of 30th Street Station is hollow underneath so barriers would help distribute the weight load. The barriers could only be delivered 9 at a time per truck and we had 177 total. They had to be cut and sized ahead of time and then shipped in. What we have now is an intricate series of walkways and passages for patrons to safely travel through while the renovations take place overhead. Amtrak also had a requirement for us to band all of the roofing material down every 2 to 3 feet to prevent uplift. But we couldn’t use standard banding material (it wouldn’t last) so we had to have it galvanized—and installed around the entire structure. We also had to design a special tie-down/clamp to anchor the jacks to the Jersey barriers. Superior came up with a solution that utilized custom clamps built by Lahyer Scaffold. The newly renovated concrete in the west portico (recently remodeled by Shoemaker Construction) required special attention when placing the Jersey barriers. We had to use a system of plywood and rubber mats beneath the barriers to protect the new cement beneath. Amtrak wanted to span the Porticos with a smaller version but we noticed that it would have blocked the access doors and the standpipes for the fire department. We proposed a larger version with a longer span using special steel beams and double towers on each side to support the load (330 psf rating) the height from the street level to the bottom of the steel deck was 16’ clear, and they spanned 25’-6”. (The height was to accommodate all of the trucks and buses.)

Amtrak also originally wanted a wood and rubber roof on top of the overhead protection but we suggested corrugated metal panels that would last longer and help channel the water from the roof. Over time the moisture would penetrate the wood and rubber and start to rot so this was a more cost effective solution. Amtrak required a specific high quality paint and color for the wood panels that act as a 4 foot parapet wall. This would be the only part that wouldn’t last 10 years in the elements —and both parties realized that every few years they would have to be updated. One of our biggest challenges was working at night to mitigate interference from pedestrian and auto traffic. But Amtrak foreman, Harold Mulleavey and his team did an incredible job interacting with the Superior team of Nick Lazer and Kenny Foreman. They were given very tight deadlines and achieved them all without incident. The logistics of getting all of the equipment and crews in each night was a giant challenge for the team. In the end, the scaffold is rock solid (has already withstood one UPS truck) and looks fantastic. Passengers by the thousands safely travel in and out of the 30th Street station all protected by our overhead canopy. Cars, busses and trucks are able to make their appointed rounds without being rerouted. And because of the unique galvanized steel this is one scaffold that will surely stand the test of time. These were all pretty non-standard issues for an overhead protection system. Visit our website for more photos and info: www.superiorscaffold.com/project/amtrak-30th-streetstation/ Blog: www.superiorscaffold.com/amtrak-rides-thesuperior-scaffold-rails-around-the-entire-building/

SPRING 2015 41

CONSTRUCTION NOTES

Insuring Joint Ventures JVs offer advantages, but create added risk. Here’s how to partner smart.

You’ve made it through the Great Recession; but now that the economy is rebounding, contractors need to evaluate how they can better avoid or spread the risk on any given project. Projects that are large, complicated, have onerous contract language and liquidated damages should not be chased unless the contractor has identified a way to limit or spread the project’s risk. If you’re working outside your geography or expertise, a joint venture may be the smartest way to insulate your balance sheet from some of the project’s risk. But, while forming a Joint Venture offers many advantages, it also creates additional risks. One of the keys to a successful Joint Venture is having a risk management approach that addresses these additional risks. There are two main approaches to insuring Joint Ventures: 1. The Joint Venture Self-Performs the work, and the liabilities of the Joint Venture partners are shifted to the Joint Venture 2. Joint Venture holds the contract for the job, but subcontracts work to Joint Venture partners, and the liabilities of the Joint Venture are shifted to the Joint Venture partners

Conversely, if ABC Company has loss experience that is higher than the average company for its class of business, ABC receives a debit Mod (such as 1.400). This debit Mod correlates to a 40 percent surcharge to the standard Workers Compensation insurance rates. In most situations when a new entity is formed, the entity will get a 1.00 Experience Mod. This is not always the case with Joint Ventures. With a new Joint Venture, there is no prior Loss Experience, so how do the Workers Compensation Bureaus address new Joint Ventures? Even though a Joint Venture is a new entity, the majority of states will create a “blended” Mod based on the Experience Mod of the Joint Venture Partners. For example, if a new Joint Venture is a 50/50 partnership formed between XYZ Contractor (who has a .90 Mod) and ABC Contractor (who has a 1.30 Mod), the Joint Venture would have a 1.10 Mod in most States. However, Pennsylvania and Delaware are two states that do not have a “blended” arithmetic average rule and would use a 1.00 Mod for the new Joint Venture.

APPROACH 1: JOINT VENTURE SELF-PERFORMS THE WORK

In the first option where the Joint Venture self-performs the work, the primary insurance for the activities will be provided by the Joint Venture’s policies. The partners of the Joint Venture should obtain indemnification protection in the Joint Venture Agreement and be added as “Additional Insured” on the Joint Venture’s General Liability and Umbrella Liability policies. This will transfer the exposure away from the insurance policies of the individual partners. In addition, the Joint Venture’s Workers Compensation policy should include an “Alternate Employer Endorsement” naming the partners to ensure that any injury to a Joint Venture employee is insured under the Joint Venture’s Workers Compensation policy and not the individual partners’ Workers Compensation policy.

A joint venture may be the smartest way to insulate your balance sheet from some of the project’s risk.

EXPERIENCE MOD FOR JOINT VENTURE

RENTED EQUIPMENT

When the Joint Venture is self-performing the work, there will be a Workers Compensation Experience Mod created for the Joint Venture. In simple terms, a Workers Compensation Experience Mod is a factor calculated by the Workers Compensation Bureau based on a company’s prior loss experience. If ABC Company has lower loss experience than the average company for its class of business, ABC receives a credit Mod (such as .750). This credit Mod correlates into a 25 percent discount off of the standard Workers Compensation insurance rates.

An additional issue when the Joint Venture is self-performing the work is the need for rented equipment. Typically the Joint Venture will rent vehicles or equipment from the individual partners since the Joint Venture does not have any of its own equipment. To properly transfer this risk to the Joint Venture, there should be a formal Rental Agreement between the Partner and the Joint Venture, and the Joint Venture should purchase its own Auto Liability policy.

42 ConstructionTODAY

CERTIFICATES OF INSURANCE FOR THE OWNER

One of the challenges with a “shell” approach is the Joint Venture holds the contract with the Owner, and some Owners will require that the Joint Venture provide a Certificate of Insurance that evidences the Joint Venture as a Named Insured for the limits of insurance required for the job. Most “shell” Joint Ventures will purchase a General Liability and Workers Compensation policy in the name of the Joint Venture. However, if the Owner requires the Joint Venture to also have its own Umbrella and Excess Liability coverage (which may be a $25 million limit required in the contract), the additional cost of these Joint Venture limits can be a challenge. Some Owners will accept a Certificate of Insurance from the Joint Venture Partners evidencing their Umbrella/Excess Liability coverage, which adds the Joint Venture as an Additional Insured. COMPLETED OPERATIONS EXPOSURE

APPROACH 2: SHELL JOINT VENTURE

The second option for setting up a Joint Venture is where the Joint Venture only holds the contract for the job and subcontracts the work to the Joint Venture partners. This is typically referred to as a “Shell Joint Venture.” In this approach, the goal is to transfer liabilities away from the Joint Venture’s insurance policies to the Practice insurance policies maintained by the individual partners; this is the opposite of what is done when work is self-performed in Approach 1. The Joint Venture should obtain indemnification protection from the individual partners in the Joint Venture Agreement and be added as “Additional Insured” on the Joint Venture partners’ General Liability and Umbrella Liability policies. In addition, the Joint Venture partners’ Workers Compensation policies should include an “Alternate Employer Endorsement” naming the Joint Venture to ensure that any injury to a Joint Venture partner employee is insured under the Joint Venture partners’ Workers Compensation policy and not the Joint Venture’s Workers Compensation policy.

One of the exposures that is often forgotten with a Joint Venture is the liability for injuries that occur after the work is complete. Most states have a Statute of Repose that defines how long a contractor has liability for a project. These statutes can create liability for a Joint Venture for up to 12 years (which is long after everyone has left the site and any profits have been divided). In addition, the Partners in a Joint Venture may be liable for the acts of the other Partners and the Joint Venture. For example, if the one Joint Venture Partner goes out of business and no longer maintains insurance, the other Partner that owns only 50% of the Joint Venture may be held liable to pay 100% of the liabilities created by the Joint Venture. Therefore, it is critical that the Partners properly insure the exposures created by the Joint Venture. One way to do this when the Joint Venture is selfperforming the work is to purchase “Joint Venture Completed Operations coverage” for the full Statute of Repose based on the applicable state. This ensures that the Joint Venture would have full liability protection so the Partner’s own insurance won’t be impacted. SUMMARY

Joint Ventures have many advantages, but they also create additional liability pitfalls. Prior to forming a Joint Venture, consult with your insurance broker for recommended insurance requirements and indemnification wording to include in the Joint Venture Agreement. These risk management steps can help you avoid the potential surprise of additional costs and liabilities that develop later after the project has been finalized. About the Authors: Both Carl Bloomfield and Jim Marquet are Vice President at The Graham Company, one of the largest insurance and employee benefits brokerages in the Mid-Atlantic region. Carl may be contacted at cbloomfield@grahamco.com and Jim at JMarquet@grahamco.com.

SPRING 2015 43

CONSTRUCTION NOTES

The Value of Surety Bonding: A Stakeholder Perspective Construction is a risky business.

And one of the most significant hazards associated with construction projects, both public and private, is contractor failure. The greatest value that surety support brings to a bonded project is protection for stakeholders from this potentially devastating issue, which can derail contract completion. Suretyship is a form of risk transfer wherein a surety guarantees to a project owner the performance of a contract by the contracted party. The performance bond guarantees the contract will be fulfilled in accordance with the contract terms while the payment bond guarantees that the contractor will pay subcontractors, laborers, and suppliers with legitimate claims. Federal, state, and municipal regulations require these performance and payment bonds on most public works projects, and many private owners and financing institutions require them on privately-funded projects. The contractor is responsible for procuring the performance and payment bonds, and will do this through the service of a surety producer, also referred to as an agent or broker. Each stakeholder—project owner, contractor, subcontractor, laborer, supplier, and taxpayer—benefits uniquely, from the underwriting process to the protections offered by the bond itself. For example, Project Owners:

A performance bond transfers the risk of project completion from the owner to the surety, provided the owner fulfills all of its contractual obligations. In the event of a contractor default, the project owner would officially declare the contractor in default in accordance with the contract provisions and file a claim against the bond with the contractor’s surety. After conducting an objective investigation of the claim and finding there was a proper default, the surety would remedy the default through one of the response options defined in the bond form. These options generally include offering financial or technical support to the original contactor, thereby enabling the contractor to complete the work, soliciting bids for a replacement contractor to complete the work, taking over completion of the work, or tendering the penal sum of the bond to the owner. If problems are communicated to the surety early enough, the surety may become involved before a contractor defaults. Financial or technical support from the surety in advance of a default may enable the contractor to continue work seamlessly without interruption to the project schedule. In many cases this assistance is invisible to the owner.

44 ConstructionTODAY

While the performance bond offers the benefit of risk transfer for the project owner, it offers to the prime contractor some assurance that the obligee will uphold its end of the contract. In order to preserve its right to file a claim against the performance bond, the obligee must abide by the default procedures defined in the contract. In addition to the risk transfer that a surety bond delivers, project owners also benefit from the rigorous prequalification that a contractor must undergo before the surety will issue a bond on the contractor’s behalf. The prequalification process examines a contractor’s experience and expertise, history, managerial ability, character, and creditworthiness through a variety of means —financial analysis, questionnaires, interviews, and reference and background checks. Ultimately, effective prequalification ensures that only qualified, capable contractors are able to bid a bonded job. No other form of financial security, such as a letter of credit or subcontractor default insurance, offers a project owner any sort of completion mechanism as does a bond, and these alternatives provide only limited prequalification benefit. Prime Contractors:

For the contractor, the surety relationship offers benefits beyond the guarantee mechanism itself. The contractor benefits on the operational, financial, and competitive fronts. The prequalification and underwriting process can be beneficial to the long-term health and development of a construction company. The surety agent and underwriter function as business advisors to aid the contractor in realizing his or her growth and development plan. This consultative process can be a valuable resource that a contractor may not have access to otherwise. Surety qualification also disqualifies contractors from the competitive bid market just as it qualifies others. The prequalification process may deem a contractor incapable of fulfilling a given contract, restricting the contractor’s ability to bid bonded work. Though surety providers each have unique standards and levels of risk tolerance, surety requirements in general bring discipline to the bidding process. Many prime contractors routinely require their subcontractors to post performance and payment bonds, with the prime contractor as the obligee. The prime contractor will be protected in the event of subcontractor failure just as the project owner is protected when the prime contractor is bonded. Some sureties require their contractor’s subs to provide subcontract bonds in order to protect their contractor.

Subcontractors

Because subcontractors are barred from filing mechanicâ&#x20AC;&#x2122;s liens against public works projects, the payment bond provides an avenue for an unpaid sub to seek compensation. While liens are legally permitted on private projects, subcontractors are sometimes precluded from filing liens by contract requirements. If a subcontractor is unable to lien a private, unbonded project, seeking recourse in the event of non-payment becomes a difficult task. The payment bond provides assurance that, by filing a rightful claim and providing appropriate documentation, a subcontractor will be able to seek payment and pay its suppliers and labor in the event that the prime contractor does not uphold the subcontract agreement. If a subcontractor has been paid but has not paid its laborers or suppliers as agreed, those who are owed payment are able to seek recourse through filing a proper bond claim. Taxpayers or Lenders:

The Miller Act of 1935 mandates performance and payment bonds on federal public works contracts in excess of $150,000. Most states and many local jurisdictions have adopted similar legislative requirements, often referred to as â&#x20AC;&#x153;Little Miller Acts.â&#x20AC;? This requirement helps to ensure that taxpayer money is spent on a competent contractor that is deemed capable of fulfilling the contract. In the event of contractor default, the additional expense of project takeover and completion, up to the penal

sum of the bond, is borne by the surety, rather than by the taxpayer. This expense can be greater than the available contract funds, so the surety guarantee is an effective way to protect limited public resources. When a privately-funded project is bonded, bank lenders and investors can have confidence that if the contractor defaults, the work will still be completed per the terms of the contract, mitigating funding shortages and repayment delay. Increasingly, bank lenders have recognized the value the surety guarantee brings to projects and have introduced bond requirements as conditions to construction and development loans. For all stakeholders in a construction project, bonding is a wise investment that helps to improve the quality of the bid market, guarantee contract performance, and defray the sometimes unavoidable cost of contractor default. Contractors should talk to an independent agent and expert surety to determine how surety bonding can work to enhance their business. For more information on surety providers and industry information, visit The Surety & Fidelity Association of America website at http://www.surety.org. To find a surety bond producer in your area, visit the National Association of Surety Bond Producers website at http://www.nasbp.org/. Elissa Viscelli, Underwriting Specialist Travelers Bond & Specialty Insurance

SPRING 2015 45

CONSTRUCTION NOTES

Congratulations to Maura Hesdon, who has been selected to serve on the AGC’s Construction Leadership Council Steering Committee for 2015! Maura Hesdon is Project Executive at Shoemaker, providing executive management oversight through all phases of work, including project planning, estimating and bidding, onsite operations, contract administration, project close-out, commissioning and start-up. She also maintains client relations and fosters strong relationships between our project owners and design teams and our in-house preconstruction specialists and field operations teams. Maura is one of the founders of MAGIC (Mentoring a Girl in Construction) camp in Philadelphia and continues to be an integral part of the annual event. She also served on the National Board of Directors for the National Association of Women in Construction (NAWIC) and is a past President of the Philadelphia Chapter 145. In addition to Maura’s involvement with GBCA and the local Construction Leadership Council, she has been appointed to the national AGC of America Construction Leadership Council (CLC) Steering Committee. AGC’s Construction Leadership Council Steering Committee includes a selection of appointed young professionals from AGC chapters throughout the country. The CLC Steering Committee provides direction and focus for a larger forum in

46 ConstructionTODAY

which members can network, socialize, and exchange ideas on issues facing mid-career construction professionals with the intention of continually working to advance the construction industry. In addition to a rotation of specifically targeted tasks, during each member’s three year term, they have the opportunity to be matched with a seated AGC of America board member as part of the leadership mentoring program. Current Subcommittees include: AGC Forums: The mission is for members of the CLC to attend various AGC National division events with the purpose of spreading the CLC’s mission. Charitable: Provide a forum to aggregate the local chapter events and promote various forms of community service. A national month of service is being organized. Communications: creation of a quarterly newsletter and proactive use of LinkedIn Industry Liaison: The goal of the group is to collaborate with other young member focused industry groups. Mentorship: This program is designed to develop the future leadership of AGC and bridge the CLC to their next step within AGC. The Steering Committee meets monthly via teleconference and in person twice per year, at AGC Convention in Spring and the CLC Leadership Development Conference in Fall.

Open-End Leases: The Choice of Most Businessess More and more businesses are turning to leasing to solve their need for vehicles. The benefits of leasing itself are relatively easy to see, literally. The most compelling benefit, is the positive effect on your company’s bottom line; commercial lease plans allow you to conserve your cash. Commercial vehicle leasing also allows a company to keep a more modern, dependable and better-looking fleet on the road. And as a company’s fleet is a representation of the organization itself, and if a fleet is ageing 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. For those businesses on the go, leasing is increasingly seen as the way to go. Open Up the Possibilities with an Open-End Lease

But once you’ve decided to lease, what type of lease should you choose? Again, there can be confusion, but basically there are two types of leases: closed-end and open-end leases. In short, closed-end leases run for a specified time, have mileage restrictions, and the vehicle needs to be turned in at lease end. An open-end lease is different; almost all commercial businesses that have made the transformation from purchasing to leasing choose to execute open-end lease plans. Open-end leases provide the required level of flexibility necessary for almost any fluid business – regardless of business size. The open-end lease frees-up your company’s working capital (no down payment or security deposit is required), and allows for reduced administration attention which leads to reduced administrative costs and time for you and your staff. This type of lease is the plan that most closely parallels the flexibility and economics of ownership. But because it is a lease, you are only paying for the part of the vehicle you are using – what we call “True Cost Financing.” When you buy, the payment is based on the original sales price. When you lease, we take the miles you expect to drive and factor that into the lease to determine a residual (ending) value. We err to the conservative side to ensure this number’s accuracy, and deliver a well-executed lease plan. At lease end, you can buy the vehicle for this residual value (the part you did not pay for during the lease), or the vehicle is sold, through either your efforts or ours: any surplus is refunded to you, and any deficiency is invoiced. Most of our clients will deposit the surplus funds right back into the company’s operating income account. The vehicle is then cycled out at the end of its business life – before the resale value curve and maintenance cost-curve meet.

Why The Bancorp

You will always get the lease that best suits your needs 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 – either open-end or closed-end - tailored to any company’s needs. The majority of our customers comprise 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. Carrier agnostic, we are able to 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. When you work 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 greatest 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 that 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; we will be happy to analyze your fleet needs and discuss all options available to you. We can help you maintain your capital and your image while enjoying all the benefits of “True Cost Financing.” Paul Pollock, Vice President, Northeast Region, Leasing and Fleet Management, The Bancorp 610.233.3529 thebancorp.com

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

CORRECTION: the Fall 2014 Issue listed an incorrect winner. Clemens Construction Co., Inc. was the 17th Annual Construction Excellence Award Recipeint for the Best Commercial Project Over $10 Million

BEST COMMERCIAL PROJECT OVER $10 MILLION Clemens Construction Co., Inc Southstar Lofts Architect: JKR Partners, LLC Owner: Dranoff Properties

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Putting Focus on Continuing Education GBCA makes available to Active and Associate member companies, and companies that contribute on behalf of the Industry Advancement Program (IAP), a number of courses through local colleges and universities. These courses are intended to provide continuing education for industry personnel, making available to them up to $1,125 per person, per semester, for approved courses. They range in focus from construction management to design, from leadership to project management, and so much more. In an effort to make the process of finding these courses easier, we have recently updated the Education portion of our website. Visit the ‘GBCA Sponsored Education Courses’ on our website to learn more about your eligibility, our partners, upcoming courses being offered, and how to apply. Our Course Guide is updated annually, however with the new changes to our website you can view current course offerings including registration deadline, location and time of courses, price and registration information. For more information on how to register, visit our website at www.gbca.com/education or contact our Manager of Education and Professional Development, Angela Louro, at alouro@gbca.com. UNIVERSITY PARTNERS:

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

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

JOIN US FOR THE 2015 ANNUAL GOLF OUTING!

JUNE 1

FOR MORE INFORMATION VISIT: gbca.com/events/gbca-golf-outing

(215) 575-7198 jkessler@dilworthlaw.com

SPRING 2015 49

REFERRAL DIRECTORY ASSOCIATIONS & UNIONS DVMI - Delaware Valley Masonry Institute, Inc.

BUILDING MATERIALS George F. Kempf Supply Co

LAW FIRMS Dilworth Paxson LLP

SEE OUR AD ON PAGE 6.

SEE OUR AD ON BACK COVER.

SEE OUR AD ON PAGE 45.

GBCA, General Building Contractors Association

CONSTRUCTION LITIGATION Cohen Seglias Pallas Greenhall & Furman PC

EisnerAmper LLP

SEE OUR AD ON PAGES 9,25,27,48.

LDC, Laborer’s District Council, Education and Training / Apprenticeship School SEE OUR AD ON PAGE 23.

LECET, The Laborer’s - Employer’s Cooperation and Education Trust and The Laborer’s District Council of Metropolitan Philadelphia & Vicinity. SEE OUR AD ON PAGE 47.

Union Iron Workers of Local 401 SEE OUR AD ON PAGE 15.

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SEE OUR AD ON PAGE 23.

GENERAL CONTRACTORS & CONSTRUCTION MANAGERS D’Angelo Bros. Inc. SEE OUR AD ON PAGE 42.

Haverstick-Borthwick SEE OUR AD ON PAGE 45. LF Driscoll, Co., LLC SEE OUR AD ON PAGE 5.

SEE OUR AD ON PAGE 44.

Jacoby Donner P.C. SEE OUR AD ON PAGE 37.

The Graham Company SEE OUR AD ON PAGE 19. INSURANCE & BONDING Conner Strong & Buckelew SEE OUR AD ON PAGE 2.

SPECIALTY CONTRACTORS B. Pietrini & Sons SEE OUR AD ON PAGE 3.

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. Thatâ&#x20AC;&#x2122;s why the areaâ&#x20AC;&#x2122;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