SUBCONTRACTORS NEWS May 2014
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Bringing New York’s Union Subcontractors Together to Build a Stronger Construction Industry IN THIS ISSUE
2 President’s Message
3 STA Hosts 45th
Annual Construction Awards Dinner
8 STA Update By Hank Kita, Executive Director, Subcontractors Trade Association
10 Mechanics’ Lien
Salvaged…By a Hair By Henry L. Goldberg, Managing Partner, Goldberg & Connolly and STA Legal Counsel
14 STA Member Spotlight: ATJ Electrical, Inc.
18 Marketing Your M/WBE Firm
By Sarah Berman, President, The Berman Group, Inc.
May 2014
STA Hosts 45th Annual Construction Awards Dinner
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STA Subcontractors News
PRESIDENT’S MESSAGE
On behalf of our Board of Directors, I would like to thank all STA members and the construction industry community for supporting our 45th Annual Construction Awards Dinner. I would like to extend a very special congratulations and thank you to our honorees, William Gilbane, III, James Flynn, William Marino and Christopher Erikson. I hope all of our guests enjoyed another great dinner at Russo’s on the Bay.
Moving into the summer months, the STA continues to advocate on behalf of its members, meeting with officials in Albany and at City Hall. Our Committees are advocating for timely payment, Scaffold Law and a number of other issues that acutely affect our industry and economic viability. We encourage all of our members to join a Committee and increase their involvement with the STA.
Thank you to all of our members for their continued support of the STA’s mission. We hope you will join us at our 2014 Annual Golf Outing to be held on Monday, June 23, 2014, at the Cherry Valley Golf Club in Garden City, New York.
Best wishes for a wonderful summer season.
Sincerely, Jerry Liss jerryl@alissco.com
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May 2014
STA Hosts 45th Annual Construction Awards Dinner The Subcontractors Trade Association (STA) recently hosted its 45th Annual Construction Awards Dinner on May 3, 2014 at Russo’s On The Bay in Howard Beach, New York, to recognize distinguished industry professionals for their exceptional contribution and dedication to the union construction industry. Honoring Industry Leaders William Gilbane III, Senior Vice President of Gilbane Building Company, earned the distinction of Builder of the Year; James Flynn, Secretary and Treasurer of Independent Temperature Control, was honored as the Ronald Berger Subcontractor of the Year; Christopher Erikson, Business Manager of Local Union No. 3 I.B.E.W., was named Labor Leader of the Year; and William Marino, Chief Executive Officer of Star America Infrastructure Partners, was the recipient of the Michael Mazzucca Lifetime Achievement Award. The awards dinner, which drew over 450 guests, also included live music and a presentation by STA President Jerry Liss.
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STA Subcontractors News
STA Holds 45th Annual Construction Awards Dinner
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May 2014
STA Holds 45th Annual Construction Awards Dinner
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STA Update BY HANK KITA, EXECUTIVE DIRECTOR, SUBCONTRACTORS TRADE ASSOCIATION
As we head towards the summer months, there is much to report at the STA. First, a special thank you is in order to the members and supporters of the Subcontractors Trade Association who attended our 45th Annual Awards Dinner on May 3. With over 450 attendees, the Dinner was a huge success and will go a long way towards supporting the ongoing activities and services of the STA. Our great success with the Dinner was in large part due to our distinguished roster of 2014 awardees: Builder of the Year, William Gilbane III from the Gilbane Building Company; the Ron Berger Subcontractor of the Year, James Flynn from Independent Temperature Control; Michael Mazzucca Lifetime Achievement Award winner, William Marino of Star America Infrastructure Partners; and Labor Leader of the Year recipient Christopher Erikson of Local Union No. 3 IBEW. I congratulate our awards recipients and thank them for their participation in the STA’s 2014 Awards Dinner. I would also like to thank our ad sponsors and attendees for their financial support of the STA through their participation in this event. The STA’s Committees continue to address issues of great importance to the union construction subcontractors of New York City. The STA’s Best Practices Committee has begun the development of a strategy to address the issue of the timely payment of subcontractors on both private and public projects. The Committee is working on the development of a “white paper” and is planning a roundtable seminar to engage our members on this issue later this year. Our Legislative Committee continues to push for legislation and changes in governmental regulations in
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Albany and at City Hall that will improve the economic viability of the STA’s member subcontractors. The Public Agencies Committee continues to meet with the New York City Department of Environmental Protection to discuss ongoing subcontractor issues on the agency’s projects. The School Construction Authority Committee is in the process of developing an agenda of subcontractor issues to take to that agency for further work and discussion in the near future. The Insurance Committee is currently looking into the wrap up insurance policies of some local general contractors and continues to monitor the progress on efforts in Albany to reform the New York State Scaffold Law. This Committee has also initiated the planning process for a STA sponsored seminar on wrap up insurance in the Fall. Other activities continue at the STA as we serve our members by investigating subcontractor payment issues on several projects around New York City. The “business interchange” service offered by the STA has also recently provided useful information and references to members as they seek information on owners and general contractors with whom they wish to do business. In addition, the STA continues to advocate on behalf of its members with public agencies as problems arise on specific projects. As you can see, there is much going on at the STA. I look forward to your participation in our committees and attendance at our events and invite you to contact us whenever we can be of assistance! hkita@stanyc.com
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Mechanics’ Lien Salvaged… By a Hair BY HENRY L. GOLDBERG, MANAGING PARTNER, GOLDBERG & CONNOLLY AND STA LEGAL COUNSEL
As we have often discussed in this column, the Mechanics’ Lien Law is designed as a remedial statute intended to benefit subcontractors in the event of non-payment. Subcontractors must recognize, however, that they must do their part to protest their interests. A New York court was recently confronted with the issue of whether a mechanics’ lien for a public improvement should be summarily discharged for allegedly misidentifying information.
The court further clarified that where a lienor fails to accurately include at least two material elements of a lien notice, it cannot be deemed to have achieved substantial compliance. Pursuant to this standard, the court denied defendant’s summary judgment motion. The court, in not summarily discharging the liens, held that the alleged discrepancies of information provided in the liens (i.e., the amount of the lien and the date of last work) were not held to be material.
In this case, a subcontractor was terminated on a public project and, as a result, the subcontractor, and its second tier subcontractor, each filed mechanics’ liens. Subsequently, both subcontractors jointly commenced an action to foreclose on the liens among other causes of action.
It is incumbent upon all subcontractors to carefully prepare mechanics’ liens and scrutinize that the contents of the liens are accurate before filing them. The Lien Law requires that specific information be included in a public improvement mechanics’ lien, including: (1) the name and residence of the lienor; (2) the name of the contractor or subcontractor for whom the labor was performed or materials furnished; (3) the amount claimed to be due or become due, (4) the date when due; (5) a description of the public improvement; (6) the kind of labor performed and materials furnished; (7) materials actually manufactured but not delivered; and (8) a general description of the contract. These are straightforward requirements. GET THEM RIGHT.
The defendant general contractor moved for summary judgment, alleging that plaintiffs’ lien notices were facially defective because there was an inconsistency between the mechanics’ liens and several other documents as to the final date that the subcontractor performed labor on the project. The mechanics’ liens identified the final date of labor as approximately two weeks earlier than the dates identified by other project documents. Additionally, the defendant general contractor alleged that the amount claimed in the mechanics’ liens was for less than the amount that was alleged in the complaint for unpaid labor, materials and services. The court in its ruling stated that if a lienor fails to substantially comply with the requirements set forth in the Lien Law, its public improvement lien may be summarily discharged.
G&C COMMENTARY These subcontractors were fortunate to have their liens survive dismissal efforts. They dodged a bullet, but are not “off the hook.” The validity of the liens may still be disputed at trial. Getting paid the right amount can be challenging enough. Avoid having to litigate the sufficiency of your lien. continued on page 12
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continued from page 10 Also, importantly, remember that when filing a mechanics’ lien, you may have another chance to get it right. If you discover that your mechanics’ lien is defective (e.g. you named the wrong party or did not properly describe the property) or inadequate (e.g. did not include all amounts owed to you), immediately confirm when the time period to file expires. (For a public improvement lien, you must file a mechanics’ lien within thirty days after completion and acceptance of the project. As for a private improvement lien, you must file a mechanics’ lien within eight months from the last date of work performed.) If you are still within the applicable period, you may withdraw the original lien (by filing a release of lien) and simultaneously file a subsequent “corrective lien.” Rather than spend time, energy and legal fees attempting to “resurrect” a flawed lien, or, rely upon the “mercy” of a judge or jury to determine whether your lien is defective or not, promptly start over and re-file a new lien within the original filing period.
Jeffrey I. Scott, an associate with Goldberg & Connolly, assisted with the preparation of this article. © Goldberg & Connolly 2014 This article has been prepared for informational purposes only. It is not a substitute for legal advice addressed to particular circumstances. You should not take or refrain from taking any legal action based upon the information contained herein without first seeking professional, individualized counsel based upon your own circumstances. The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you written information about our qualifications and experience. Mr. Goldberg may be reached by email at hlgoldberg@goldbergconnolly.com or by telephone at (516) 764-2800. www.goldbergconnolly.com
REGISTER NOW! WEDNESDAY, JUNE 25, 2014
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Networking Hour & Dinner Election of Officers Presentation by Helmets to Hardhats Program Panel Discussion: Grassi & Company 2014 Construction Market Outlook Survey
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STA Member Spotlight: ATJ Electrical, Inc. ATJ Electrical, Inc. may have started as a “mom and pop” electric company, but the STA member has come a long way from the five-electrician team it began as. The company was founded in 1982 by Ivan and Danica Drazic and has been run by their son Andrew Drazic since 1999. For the past 15 years, ATJ has played a prominent role in major public works projects with agencies such as the New York City School Construction Authority, the New York City Department of Design and Construction, the Dormitory Authority State of New York and the New York Power Authority. Other clients on the roster include Hill International, Plaza Construction, Skanska USA, Liro, TDX and HAKS. ATJ Electrical’s major areas of expertise include the installation of electrical, lighting and low-voltage systems for both public and private sector clients in renovation and new construction projects. Andrew, a member of the STA Board of Directors, graduated in 1994 with a degree in Electric Power Engineering from Rensselaer Polytechnic Institute in Troy, New York, and began his career as an electrical engineer at the Manhattan consulting firm Robert Derector Associates. Five years later, he joined his family at ATJ Electrical. Andrew saw an opportunity to grow the business further; with a bonding line in hand and the groundwork for the successful company they have now, ATJ became a signatory to Local Union Number 3 I.B.E.W.
“That opened the door to bidding opportunities that were on a higher level, such as City Hall and the SCA/NYC PLA work,” Andrew said. “That was really the vision, not to just become part of a ‘mom and pop’ electrical shop keeping five guys working, but to grow it into a business where the people who are out working in the field feel like they are part of a stable growing company, working on jobs they can be proud of.” ATJ has completed a number of high-profile electrical projects, including the recent City Hall renovation and the new 121st Police Precinct Station in Staten Island. They have also done considerable work with the NYC School Construction Authority––something Andrew and the rest of the ATJ team are particularly proud of. “We know that all of that work is a direct benefit to the future of New York City and to the children who go to those schools,” said Andrew. ATJ Electrical joined the Subcontractors Trade Association in affiliation with the Association of Electrical Contractors in 1999. Andrew has been on the STA Board of Directors since 2011, following his involvement with the STA Executive Advisory Board from 2005. For him, the STA has opened his eyes to the important subcontractor concerns that need to be talked about in the ever-changing NYC construction industry. To understand what was taking place behind the scenes through the STA and then to have a voice in the
continued on page 16
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continued from page 14 discussions for future change was something he had not experienced in any other organization. “The more that we can all as contractors get involved with the things the STA is promoting, such as changing some of the unfair provisions that are in the city contracts for people who are doing public projects, that’s a priority,” he said. “The more we can align and stick together as one voice to change that, the better off we will be as contractors, and the public agencies will reap the benefits of having stronger contractors bidding on the work.” Andrew is also on the Board of Directors for the Association of Electrical Contractors, National Electrical Contractors Association, AEC Scholarship Charity and the Croatian American Charitable Foundation. He resides in Plandome Manor, Long Island, with his wife Sabrina and their 10-year-old twin daughters, Mia and Isabella. When he’s not gracing New York with the power of electricity, you can find him rocking out on the guitar and writing songs in his home studio. “It kind of breaks up the monotony of doing this type of business,” Andrew said. “You need some creative outlet or you’d go insane.” ATJ Electrical is located at 122-13 15th Avenue in College Point, New York. You can reach them by phone at 718-321-0117 or contact Andrew at adrazic@atjelectrical.com.
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Andrew Drazic Owner, ATJ Electrical, Inc.
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Marketing Your M/WBE Firm BY SARAH S. BERMAN, PRESIDENT, THE BERMAN GROUP, INC.
New York City’s M/WBE program is a groundbreaking step in opening up opportunities for minorities and women in the construction industry. Certification through this program presents unique branding that can be easily integrated into existing marketing programs to increase exposure in target markets and provide new opportunities to establish business with companies and organizations seeking to fulfill diversity requirements and establish long-term relationships with M/WBE vendors. Providing Opportunity Recent legislation including Intro 911-A has increased the scope of these opportunities, providing access to more high-value contracts in both public and private sector construction projects. However, these initiatives do not automatically increase business for minority and women-owned companies. Rather, M/WBE companies must take advantage of the opportunities these initiatives provide through aggressive marketing and hard work to grow their businesses and profit from M/WBE certification. Leveraging Your Reputation for Growth Every successful marketing campaign is based on quality products services and substantiated by a reputation for excellence; M/WBE companies are no exception to this rule. While M/WBE programs offer to open doors with current and potential clients and guarantee a slice of construction contracts, you need to be a great company doing great work to remain competitive. With this in mind, businesses that have cultivated strong reputations will be the most successful in growing their businesses with M/ WBE projects, and should take every opportunity
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to integrate certification into all facets of their marketing strategies. Marketing Your M/WBE Firm Integrating certification into your marketing efforts is critical for taking full advantage of M/WBE programs. Successful marketing campaigns include outreach strategies through social media platforms, public relations campaigns, and networking. Capitalizing on the exposure from each of these channels to advertise your status as an M/WBE vendor is important for fully realizing your business opportunities. One of the easiest ways to accomplish this is to incorporate your certification in your company’s branding. Highlighting M/WBE certification on your website and social media accounts and mentioning it in your public relations campaigns will help to solidify your image as a certified provider. Maintaining Vigilance Once your marketing strategy is in place, take advantage of the opportunities it yields by engaging your professional network and communicating your qualifications to partners looking for MWBE vendors. Keep your certification current by filing the required paperwork on time, and where possible, promote yourself in certified vendor directories such as New York City’s Online Directory of Certified Businesses. Above all, stay vigilant in safeguarding your reputation. Constantly evaluate your performance and set high standards for excellence and professionalism to ensure that your business is able to seize every opportunity afforded by M/WBE programs. www.bermangrp.com
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Subcontractors News 1430 Broadway Suite 1600 New York, NY 10018 T: 212.398.6220 F: 212.398.6224 e-mail: info@stanyc.com website: www.stanyc.com Officers Jerry Liss, President A. Liss & Co. Inc. Robert J. Ansbro, 1st Vice President The New York Roofing Company Robert Weiss, 2nd Vice President A.J. McNulty & Co. Inc. Peter Cafiero, Treasurer Island Painting
John A. Finamore, Secretary Jordan Panel Systems Hank Kita, Executive Director Subcontractors Trade Association
Robert Samela A.C. Associates
Andrew Drazic ATJ Electrical
Gary Segal (Honorary) Five Star Electric Corp.
Brent Fleisher Environet Systems
Lawrence Weiss A.J. McNulty & Co., Inc.
James Flynn Independent Temperature Control
Henry Goldberg, Legal Counsel Goldberg & Connolly
Scott Rives Woodworks Construction Co, Inc.
Active Past Presidents Greg S. Fricke, Jr. Leonard Powers, Inc.
Board of Directors Joseph Azara Jr. C.D.E. Air Conditioning
Craig Gilston Gilston Electrical Contracting
Christine Boccia JD Traditional Industries
Gloria Kemper Recon Construction Corp
Alan Nathanson (Honorary) Forsythe Plumbing & Heating Corp. Lawrence Roman WDF, Inc. Arthur Rubinstein Skyline Steel Corp.
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Patrick Gallagher BP Mechanical Corp.
Joseph Leo Atlantic Contracting & Specialties, LLC Stephen London Commercial Electrical Contractors Jeffrey Milad Milad Contracting Corporation Randy Rifelli United Iron, Inc. Guy Vande Vaarst Empire System Solutions
O U R M I S S I O N S TAT E M E N T trengthen New York’s construction industry
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