STA October 2014 Newsletter by Subcontractors Trade Association

SUBCONTRACTORS NEWS October 2014

Bringing New York’s Union Subcontractors Together to Build a Stronger Construction Industry IN THIS ISSUE

2 President’s Message By Robert J. Ansbro

3 STA Continues Advocacy Efforts with School Construction Authority By Hank Kita

7 Managing the 2014-15 Changes in NY Workers’ Compensation By John Frizalone

October 2014

STA Continues Advocacy Efforts with School Construction Authority

11 New Guidance on

Revenue Recognition – Is Percentage of Completion As We Know It Gone Forever? By Anthony J. Campolo

15 Bidding Controversies – Bid Mistakes and Bid Protests Part II – Bid Protests By Henry L. Goldberg

21 STA Member Spotlight: JD Traditional Industries By Samantha Sweeney

23 STA & BTEA Hold

Presentation by NYC Department of Buildings By Samantha Sweeney

25 STA Construction

Insurance General Membership Meeting Review By Samantha Sweeney

If you would like to receive a hard copy of Subcontractors News in the mail each month, please email your full mailing address to ssweeney@stanyc.com with the subject line “Subcontractors News Hard Copy Request”

STA Subcontractors News

PRESIDENT’S MESSAGE As we head into the fall, the STA continues to work on new and ongoing projects, focusing particularly on our legislative agenda. Our legislative committee continues to work on Public Authorities Law reform dealing with the SCA claims, No Damages for Delay, retainage and insurance reform. This month’s Subcontractors News features a piece that brings us up to date on the advocacy efforts of the STA with the New York City School Construction Authority (SCA). Several years ago the STA established a committee to apprise and coordinate with the SCA to solve problems that arise in terms of STA members getting paid in a timely manner, speeding up the issuance of change orders and creating a more cooperative means of working together. Since the inception of the committee, there have been procedures developed to ensure that the goals of both organizations are reached. The STA continues to work with the SCA to resolve our members’ issues. The STA recently held two successful events. On September 23, the STA and the BTEA together held a special seminar on the Chapter 33 Building Code changes which was attended by over 100 professionals in the field. On October 1, the STA held a General Membership Meeting with over 80 attendees that focused on construction insurance practices in New York City and New York State that featured a panel of experts in the field. However, we could have seen at this General member Meeting more subcontractors who are the ones affected by this cost. I thank all those who participated and attended these recent programs. The AGC and STA have a Breakfast Meeting with The SCA at the Downtown Association on October 24th to discuss common concerns. We are meeting with Loraine Grillo, President of the SCA, and Jason Ocharsky, Director of Construction Inspection Division (CID). We are looking for a strong attendance by STA Membership and will report to you on this meeting in our November newsletter. The next STA General Membership Meeting will be held on Wednesday, November 12th and will feature NYC General Contractor Hunter Roberts Construction Group. Project executives, project managers, purchasing agents and estimators from Hunter Roberts will be in attendance to discuss their work on-hand, upcoming projects and other industry issues. Please look out for more information on this General Membership Meeting in the coming weeks. I look forward to seeing everyone on November 12! Sincerely, Robert J. Ansbro President

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October 2014

STA Continues Advocacy Efforts with School Construction Authority BY HANK KITA, EXECUTIVE DIRECTOR, STA

The STA has a long and outstanding record of advocacy on behalf of its members with one of the most significant of the public agencies employing construction subcontractors locally—the New York City School Construction Authority (SCA). The STA formed a committee several years ago to inform the SCA of problems encountered by its members and to collaborate with the SCA in order to assist STA members in cutting through “red tape” and bureaucracy and getting paid in a timely manner. The efforts of the STA’s SCA Committee led by Immediate Past President Jerry Liss, paid off last year with the implementation of a new initiative for change order procedures at the SCA. The goals of this initiative were to streamline and standardize the SCA change order process to better define the change, shorten the processing time, assure fair compensation to general contractors and subcontractors, tie cash flow to the general contractors and subcontractors as closely as possible to the period when the work is done, and increase the number of change orders settled prior to the initiation of the change work. One of the major areas of concern raised by the STA with the SCA was that at the negotiations of change orders, there is often a disagreement between the subcontractor and the SCA on the scope of work. As a result of those concerns, the SCA worked to reengineer the front end of the change order process to improve response, reduce rework and reduce overall time, when possible upfront on the scope of work. Consequently, the SCA altered their process to require all requests for changes or

RFI’s from the General Contractor to be submitted to the Architect of Record (AOR) with a copy to the SCA Project Officer. Any general condition, IEH or non-technical issues were now to be redirected to the Project Officer or the SCA’s Environmental group. As a result of the STA Committee’s work, the SCA also agreed to issue bulletins when the RFI response or a simple sketch was not sufficient to define the scope and/or the changes. In addition, any work done using contract allowances is to be done by bulletins and NOD’s and all work done under the contract provision must be ordered in writing by the AOR. The SCA Project Officer is to maintain all records for payments and/or future change orders. Another major concern raised by the STA Committee dealt with specific conflicts that might occur in SCA versus contractor estimates. As a result, the SCA agreed to a standard estimating format. The SCA contract, Article 7 of the general conditions, was revised to include a standard estimating format to be used by all subcontractors and general contractors. The SCA also contracted with an estimating software development company to develop estimating software. The goal was to eliminate most disagreements on quantities, reduce the time for Change Order Unit reviews and the number of meetings to resolve change orders. Another issue pressed by the STA’s SCA Committee was that general contractors have little or no incentive to resolve change orders. In response to this, the SCA agreed that the general contractor

continued on page 5 Email Feedback to the STA Office

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October 2014

continued from page 3 mark up on all subcontractor work is to be 10, 5, and 3% on each subcontractor’s work instead of 10, 5, and 3% on the total change order. The SCA also agreed to allow mark up on overtime that is ordered by the SCA. As a result of the STA Committee’s initiatives, the changes agreed upon by the SCA will result in a higher compensation for the general contractors and subcontractors. The STA SCA Committee continues to work on behalf of its members in order to reduce needless costs and frustration and improve profits and the work environment with the SCA. The STA meets regularly with the SCA to address ongoing subcontractor issues

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with this agency. Most recently, the Committee along with the Associated General Contractors met with the leadership of the SCA regarding ongoing issues with the agency’s Construction Inspection Division (CID). A seminar for STA members was to be held on October 24, featuring top administrators of the SCA to discuss this issue. Members should continue to look for advisories from the STA on SCA issues as we continue to work to resolve issues vital to your work with this public agency.

STA Subcontractors News

SAVE THE DATE NOVEMBER 12, 2014

STA GENERAL MEMBERSHIP MEETING FEATURING A PRESENTATION BY GENERAL CONTRACTOR HUNTER ROBERTS When: Wednesday, November 12, 2014 5:15 – 6:00 p.m. Cocktail Hour 6:00 – 6:30 p.m. Dinner 6:30 – 7:30 p.m. Presentation & Panel

Where: The Automotive Center for Education and Training 15-30 Petracca Place Whitestone, NY 11357

Please join the STA for our upcoming General Membership Meeting featuring a construction panel and seminar. The panel will feature professionals from New York City General Contractor Hunter Roberts. They will be providing information about their company, upcoming projects, advice and tips for working with General Contractors among other industry topics. There will be a Q&A session at the end of the presentation. Please look out for more information in the coming weeks!

$75 for Members ($80 at the door) $85 for Non-Members

Call or Print & Fax the Form Below REGISTRATION FORM – GENERAL MEMBERSHIP MEETING – NOVEMBER 12, 2014 Subcontractors Trade Association 1430 Broadway, Suite 1600 • New York, NY 10018 Tel: (212) 398-6220 • Fax: (212) 398-6224 • ssweeney@stanyc.com Name(s) Tel: Email:

Company Fax:

$75 for Members ($80 at the door) $85 for Non-Members Check Enclosed: $ for reservations

To Pay by Credit Card Please contact Samantha Sweeney at ssweeney@stanyc.com or 212-398-6220

October 2014

Managing the 2014-15 Changes in NY Workers’ Compensation BY JOHN FRIZALONE, DIRECTOR OF WORKERS’ COMPENSATION, AON RISK SOLUTIONS

As the fall season begins, we again want to take this opportunity to remind the STA and safety group members of important changes affecting New York Workers’ Compensation. Earlier in the year, the New York Rating Board requested a rate loss cost increase of 6.8%; the good news for employers is that it was rejected by the Department of Financial Services and this October loss cost will remain the same with no change. As a reminder, loss costs are the “base rates” which carriers then add their individual multipliers. We caution members that carriers are still free to increase their loss cost multipliers. Members should also see a reduction in the New York assessment to 13.8% from last year’s 18.8%. Our State Fund Safety Group participants will continue to receive a further reduction, in effect, bringing the assessment to a net of 9.8%. Taking a moment to move across the river for contractors having operations in New Jersey, their rates as of January 1, 2014 have increased an average of 3.6%.

Contractors have received premium credits of over 15% on properly filed applications. New Jersey also provides a contractor “PAP” credit with similar filing requirement. Taking advantage of these relatively simple credit programs has helped reduce premium.

Help reduce premium! Be sure to take advantage of capping your payroll. Earlier Aon bulletins contained important information about the July 1, 2014 increase to the payroll limitation cap from $1,204.81 per week to $1,212.98 for policies with effective dates on and after July 1, 2014. Don’t forget to file your Workers’ Compensation Construction Classification Credit (CCPAP) program, aka “PAP “application. The average hourly wage requirement is now $23.25, effective for new and renewal policies. If you have NOT yet filed your application, you may still qualify but you will need to follow late filing rules.

Protect your company! Be sure to obtain Certificates of Insurance (COI’s) on all contractors and vendors you hire. Carriers are required to follow Rating Board rules on issues regarding the proper payroll classification to be applied to uninsured subcontractors. The language stipulates that subcontractors and other individuals in construction be classified under the appropriate labor classification. In the absence of payroll, a percentage of the contract will be the basis for premium. Be extra cautious when hiring out of state contractors or vendors, a COI which does not contain specific and full New York coverage may not

We cannot stress enough the importance of job site safety and staying involved in getting injured employees back to work. Each year, starting in July, the injured workers weekly benefit increases. This year, the benefit for injured workers increased from $803.21 to $808.65. Injured workers earning $1,212.98 per week can be eligible for this maximum weekly non taxed benefit. New Jersey continues to maintain a slightly higher benefit of $843. For contractors engaged in “wet work,” the January 2014 surcharge has been increased to 53.7% from 48.2%. Lost wage benefits are currently at $1,346.68 per week and are also expected to increase after October.

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continued from page 7 qualify as acceptable for New York insurers. When you are doing work out of state, make certain your employees are covered—rules within the tri-state area can be tricky. We urge you to avoid these often unanticipated costs and liability by requiring that all your subs provide valid Certificates of Insurance (COI’s). A good practice is to require your contractors and vendors to provide COI’s prior to payment. With all the efforts put forth to persuade Albany to repeal or at least create a negligence standard in the 120-year-old “Scaffold Law,” we will enter yet another year as the only state to abide by its dictates. It is more important for owners and managers to take a more active role in protecting their Worker’s Comp and General Liability exposure. Become a more active participant in preventing accidents, managing claims and taking care as to how your company is transferring risk. Be extra cautious about unwanted liabilities others are passing on to you! We need to stay on the cutting-edge of the landscape. When it comes to managing risk, “expect the unexpected” is most likely the best advice. Workers’ Comp, a 100-year-old social insurance program fully funded by employers, is facing a challenge to its very core. Recently, Florida’s Miami-Dade 3rd District Court of Appeals has declared “Exclusive Remedy” unconstitutional. Briefly, the judge noted that because workers’ compensation benefits have been repealed or reduced in Florida especially as occurred in 2003, workers’ compensation is no longer a reasonable alternative to the injured employee’s ability to pursue a remedy by filing a civil action. Although this case does not establish any precedence outside of the court that issued the ruling, it does point to the fact that we should remain in touch with the changing landscape of Workers’ Comp throughout the jurisdictions of the U.S. Rulings such as this will make both employers and carriers jittery about pricing and offering coverage. Aon will continue to stay alert to changes affecting our clients. We also urge all members

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to take advantage of association membership by requesting a quote for the Subcontractors Trade Association (STA) and Northeastern Subcontractors Association (NESCA) sponsored Aon managed Safety Group. As an association member you are eligible to apply and receive up to a 20% advance discount along with a generous history of dividends. Safety Group coverage is a guaranteed cost plan providing full New York State statutory coverage. We offer expert advice on lowering your EMR and assistance with filing for credits. We also offer to all association members a free analysis of your entire insurance program including premium and coverage options. For more information on how the changes in Workers’ Compensation are affecting your cost please contact John Frizalone | Director of Workers’ Compensation; John.Frizalone@Aon.com or call 516396-4401. The information contained in this bulletin is subject to change without notice and is intended as general information only. Your individual policy and premium should always be reviewed with your insurance representative.

STA Subcontractors News

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October 2014

New Guidance on Revenue Recognition – Is Percentage of Completion As We Know It Gone Forever? BY ANTHONY J. CAMPOLO, CPA, PARTNER, COHNREZNICK CONSTRUCTION INDUSTRY PRACTICE

The wait is over. On May 28, 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued the long-anticipated converged guidance on recognizing revenue in contracts with customers in Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers – Topic 606 (ASU 2014-09). The new guidance affects all entities that enter into contracts with customers to transfer goods or services, including construction companies, leading many to ask, “Is percentage of completion, as we know it, gone forever?” CohnReznick addresses the new guidance and the ways in which it can impact construction companies in the forthcoming discussion. Current accounting guidance for long-term construction contracts is prescriptive and includes specific terminology and guidance for the construction industry. The new revenue standard was written to create consistent revenue recognition across multiple industries and transactions. The FASB and IASB’s goal with this new standard is to establish a consistent set of principles to report useful information to users of financial statements about the nature, timing, and uncertainty of revenue from contracts with customers. This new guidance replaces all existing GAAP revenue recognition requirements, including all construction industry specific revenue and cost requirements. Because the new standard eliminates the construction industry-specific guidance under GAAP, ASU 2014-09 represents a major accounting change.

However, the standard’s impact to most contractors is not as severe as was feared when it was announced. Specifically, while the standard introduces new definitions, terminology, and disclosure requirements, most contractors will still be able to use percentage of completion accounting as an approach to recognizing revenue from construction contracts over time. The new standard allows for the use of input and output methods such as cost-tocost to determine percentage complete on contracts in progress. The FASB and IASB have established the following core principle with respect to this new standard: “Recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In order to achieve this core principle, the following five-step model has been developed: Step 1: Identify the contract with the customer. Step 2: Identify the performance obligations (promises) in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the reporting organization satisfies a performance obligation. How do the steps impact the construction industry?

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continued from page 11 Step 1: Identify the contract with the customer. There is no major difference between the current standard and the new standard regarding how contractors identify contracts. The new revenue standard will require entities to combine two or more contracts with the same customer into a single contract if the contracts are entered into at or near the same time and if they meet one or more of the following requirements: • The contracts are negotiated with a single commercial objective • The amount of consideration to be paid in one contract depends on the price or performance of the other contract • The goods or services promised in the contracts are a single performance obligation The requirement to combine contracts is generally consistent with the underlying principles in current accounting guidance. As a result, the assessment of combining contracts is not expected to change significantly. While the new standard is silent regarding segmenting contracts, entities segmenting contracts under current guidance may not be impacted due to the new standard’s requirement to account for separate performance obligations. As a result, entities may reach similar conclusions about segmenting contracts as they do under today’s guidance. Step 2: Identify Separate Performance Obligations (promises) in the contract. Construction companies will need to identify, and separately account for each “distinct performance obligation” within a contact. A performance obligation is defined as a promise in a contract with a customer to transfer a good or service to the customer under the terms of the respective contract. A contractor must account for each performance obligation separately if the performance obligation is distinct. A performance obligation is considered distinct if the customer can benefit from that good or service on its own on a “standalone” basis and that a good or service is separate from the other goods and services provided in the contract.

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Although contractors have to evaluate each contract for distinct performance obligations and document their conclusions, CohnReznick’s expectation is that most construction contracts will have one performance obligation. Under a typical construction contract, all of the goods and services provided are highly interrelated and interdependent on each other. Consider a general contractor constructing a building: all of the components and building trades required in construction are interrelated and interdependent on the project as a whole. Since the general contractor integrates these components and services into a completed building, this contract would only have one performance obligation. In an effort to make this article as comprehensive as possible, it was decided to split it into three separate sections. In the next two issues we will discuss the process of determining the transition price, as well as how to allocate the transaction price to the performance obligations in the contract and ways to recognize revenue when (or as) the reporting organization satisfies a performance obligation. Please feel free to reach out to Anthony J. Campolo, CPA at CohnReznick, LLP. He can be reached at Anthony.campolo@cohnreznick.com or 914-9222126 or visit www.cohnreznick.com for more information on revenue recognition.

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October 2014

Bidding Controversies – Bid Mistakes and Bid Protests Part II – Bid Protests BY HENRY L. GOLDBERG, MANAGING PARTNER, GOLDBERG & CONNOLLY AND STA LEGAL COUNSEL

In the first part of this two-part series concerning procurement disputes, we addressed the misuse of “bid mistakes.” In this second article, we discuss bid protests, aided by a recent Goldberg & Connolly victory which resulted in a significant multi-million dollar award to our client, the second-lowest bidder. Bid Protest Standards In a bid protest, the protesting bidder is often frustrated by the fact that public owners have a fair amount of room to waive “minor irregularities” in a contractor’s bid. That is, a public owner may exercise its discretion to waive technical noncompliance with a bid specification if the defect is a “mere irregularity” where such waiver would not give the low bidder a substantial competitive advantage over other bidders. On the other hand, if a bidder fails to comply with a “material” bid requirement, the public owner will reject its bid as non-conforming. As you may suspect, whether a defect is “material” or a waivable “mere irregularity,” it’s often open to subjective interpretation. What a losing bidder might consider “material,” an owner or a judge, might consider minor and waivable. Another major issue confronting any bid protest in New York is that the standard of review that a protestor must satisfy is formidable. In order to win a special proceeding under Article 78 of the New York State’s rules of court procedure, the protestor must show that the public owner’s decision was made in “violation of lawful procedure, or was affected by an error of law, or was arbitrary and capricious or an abuse of discretion.”

While “any rational basis” is a very low bar for an agency to meet, in the right circumstances, where the agency’s determination undermines the competitive bidding system, the courts of New York will intervene. Goldberg & Connolly’s Bid Protest Victory In a recent case that we successfully “defended” (i.e., supported the agency’s action awarding the project to our client), the court denied the low bidder’s court challenge seeking to annul a contract award to our client, the second-lowest bidder, for a public school construction project in the City of Binghamton. In this case, the bid package required all bidders to provide a Dun and Bradstreet (D-U-N-S) number and clearly advised that bid submissions without a D-U-N-S number would not be considered. While the petitioner submitted a “winning” low bid, it failed to include a D-U-N-S number with its bid, as expressly required. Due to the petitioner’s omission, the Board of Education threw out all of the bids and sought to solicit new bids, rather than award the contract to our client, the second-lowest bidder. In response to the owner’s rejection of all bids, we promptly submitted a bid protest to the Board of Education on behalf of the second-lowest bidder stating, among other reasons, that the contract should be awarded to the second-lowest bidder because the lowest bid contained a material defect and the rejection of all bids had no rational basis. The Board of Education agreed with our position on behalf of the second-lowest bidder and awarded the contract to our client.

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October 2014

continued from page 15 The losing lowest bidder then commenced a court proceeding, seeking to annul the award of the contract to the second-lowest bidder. In applying the standards addressed above, the court denied the low bidder’s application, determining that the Board of Education clearly made the D-U-N-S number a “material” requirement and, therefore, the Board of Education had a rational basis for refusing to waive the defect in the protesting, low bidder’s submission. Public Owner’s Right to Reject All Bids It is conventional wisdom that a public owner, like the Board of Education in this case, has the unfettered right to reject all bids; in effect to declare a “do-over.” However, the right for the public owner to throw out all bids is not without limitation. [See, Goldberg & Connolly’s Construction Law Alert, April 11, 2011, “Limitations on Owner’s Rights to Reject All Bids”] Courts have held that owners cannot exercise their right to reject all bids “arbitrarily, or for the purpose of thwarting the public benefit intended to be served by the competitive bidding process.” Therefore, if an owner arbitrarily rejects all bids, courts may overturn the owner’s decision to do so. G & C Commentary If the lowest responsive bid fails to comply with a “material” bid requirement, the public owner has a rational basis to reject a low bid and award the contract to the second-lowest responsive and responsible bidder. Given the size of many public works projects, bid protests, from a cost perspective, are often a worthwhile undertaking. Before commencing a lawsuit, however, a careful analysis must be undertaken with knowledgeable counsel. One of the reasons we have a successful track record with bid protests is that we tend to handicap them conservatively. However, when the facts support the effort, the financial risk, as compared to the project’s size, is often worthwhile. Finally, note that time is of the essence for bid protests. It is important to stop the project from proceeding, first to award, then contract signing, and, eventually, mobilization. Contractors are best served by seeking

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advice on assessing their situation on a case-by-case basis, and, where appropriate, to mobilize a formal protest quickly. This will almost always involve seeking a court order staying the procurement until the protest can be resolved. Once a “spade is in the ground,” costs are incurred. Who is to pay for this and under what contract? Does the public agency have to “terminate for convenience” a contract signed with the wrongfully awarded bidder; doesn’t that bidder not have contractual rights? All such considerations should and can be avoided. Always treat the bid protest as an emergency. Your counsel will know when and under what circumstances an injunction staying the procurement can be obtained. As indicated, this will provide you with a full opportunity to have your protest independently aired in court. Henry L. Goldberg may be reached at (516) 764-2800 or via email at hlgoldberg@goldbergconnolly.com Jeffrey I. Scott, an associate with Goldberg & Connolly, assisted in 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.

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October 2014

STA Member Spotlight: JD Traditional Industries BY SAMANTHA SWEENEY, SUBCONTRACTORS TRADE ASSOCIATION

STA member JD Traditional Industries is a Union WBE certified subcontractor that specializes in carpentry, drywall, taping, lath, plaster, and acoustical & specialty ceilings. Donaldson Traditional Interiors was founded in December of 1996 by James C. Donaldson Jr. after he sold his prior ownership in Donaldson Acoustics. He began doing SCA schools, small renovations and plaster work. Christina Donaldson Boccia, the current Executive Manager, took over in 2007 and a year later, applied for JD Traditional’s first WBE certification and became certified with all agencies as a Women’s Business Enterprise. She has grown the business over three times the size and now employs over 85 union workers in the field. Recently they changed their name to JD Traditional Industries to lessen any confusion in the construction industry between them and the Donaldson Organization. They are currently working on six SCA schools and continue to do work with many of the NY State & City agencies such as, SUNY, CUNY, DASNY, the MTA, DDC and DEP. Ongoing projects include the New York Presbyterian Allen Hospital, the New York Aquarium’s Shark Exhibit, Huntington Hospital and renovations at JFK and LaGuardia Airports. JD Traditional Industries has completed work on high-profile jobs in the New York territory including AECOM offices, Ted Baker London’s Flagship Manhattan store and Saks Fifth Avenue. They have

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also received awards for their work on Carnegie Hall (Arthur Zenkel Hall), the MTA Operations Center and the Chaminade High School gymnasium. JD Traditional Industries has been a member of the STA since 2008. Donaldson Boccia started on the STA Executive Advisory Committee in 2009 and was then voted to the Board of Directors in 2010. She has been the chair of the STA MWBE Committee since it was developed in 2011 and continues to co-chair with Linda Christenson after the STA and the Building Trades Employers’ Association (BTEA) came together to create a joint committee. Donaldson Boccia also sits on the Board of Governors of the BTEA and Board of Directors of the Wall Ceiling & Carpentry Industries Association, where she was the first female in 93 years to be elected to the Board. She is also a member of the Women’s Builders Council. When Donaldson Boccia is not running the company, she finds time to golf, cook and garden. She is very involved with her church, sitting on the Board of Governors and is the treasurer of the Women’s Charity Group. You can contact Donaldson Boccia at chris@jdtraditional.com. JD Traditional Industries 199 Broadway Huntington Station, NY 11746 T: 631-549-1338 F: 631-549-1309

STA Subcontractors News

Kaufman Dolowich & Voluck Is A Full-Service Litigation Firm That Understands Your Business Needs Andrew Richards

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October 2014

STA & BTEA Hold Presentation by NYC Department of Buildings BY SAMANTHA SWEENEY, SUBCONTRACTORS TRADE ASSOCIATION On September 23, the STA and the BTEA partnered up to hold a special seminar presented by the New York City Department of Buildings on the Chapter 33 NYC Safety Code Changes. The program was held at the McGraw-Hill Gallery in Manhattan and was attended by over 85 professionals in the construction field.

The seminar addressed the key changes to the Chapter 33 of the NYC Construction Codes. The goals of the Code Revision are to add requirements to enhance construction safety, incorporate new technologies and industry practices, clarify ambiguities in code language and consolidate safety-related regulations.

The presentation was given by Robert Dâ&#x20AC;&#x2122;Alessio, Senior Executive Director of Construction Safety, and Michael Alacha, Assistant Commissioner of Engineering and Safety Operations from the NYC Department of Buildings. Chapter 33 governs all types of construction including new buildings, alterations, demolitions, repairs and temporary construction equipment. It also covers many categories of buildings including residential, commercial, industrial, high rise, low rise and private dwellings for multiple-sized families.

The Construction Code revisions were reviewed by 27 committee members from the industry and nine committee members from the Department of Buildings. The analysis took place over a period of 24 months.

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A 300+ page document that covers all of the Chapter 33 changes in detail as well as a full version of 2014 Construction Codes is available on their website: www.nyc.gov/buildings.

STA Subcontractors News

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October 2014

STA Construction Insurance General Membership Meeting Review BY SAMANTHA SWEENEY, SUBCONTRACTORS TRADE ASSOCIATION On Wednesday, October 1, the STA held a General Membership Meeting on Construction Insurance. Over 80 attendees heard a panel of experts in the field of construction insurance discuss developments and trends in this area. Members of the panel included Mitchell B. Reiter, partner at Goldberg & Connolly Attorneys at Law, Kelly Bluhm, Head of Excess Casualty Energy and Construction for USA, Canada and Bermuda at AIG, Colleen Parmelee, Commercial Lines Territory Manager for the Eastern NY Territory at Harleysville Insurance, and Stephen Paier, Managing Director at Travelers Construction. The panel was moderated by David Marino, Regional Executive Vice President of Aon Construction Services, who sits on the STA Executive Advisory Committee. The New York State Scaffold Law was once again singled out by our panelists as the primary reason for escalating subcontractor insurance rates in New York State. The panelists emphasized the need for strong safety programs in addition. “Look for formalized safety programs,” said Ms. Parmelee. “It will help a subcontractor’s eligibility for favorable rates in the future.” Recording site conditions thoroughly and training project managers to be vigilant regarding safety will also help subcontractors with any insurance claims they must eventually process.

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In terms of documenting site conditions, Paier noted the use of “tablets, software, instant notifications” as just some of the tools contractors and owners can use to stay on top of potential claims. “Documenting everything you can about site conditions helps make sure the right story is being told from the beginning,” said Paier. “There is no reason why you can’t take photos or videos with your phone now.” The Subcontractors Trade Association would like to thank all those who participated in the seminar and all those who attended the dinner meeting. The next STA General Membership Meeting will be held on Wednesday, November 12 at the Center for Automotive Education and Training in Queens, New York. The seminar will feature representatives from New York City general contractor Hunter Roberts Construction Group. Please look out for more information in the coming weeks. If you’d like to reserve a spot early, contact the STA at info@stanyc.com or 212-398-6220.

STA Subcontractors News

Subcontractors Trade Association 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

Hank Kita Executive Director Subcontractors Trade Association Henry Goldberg Legal Counsel Goldberg & Connolly Active Past Presidents Greg S. Fricke, Jr. Leonard Powers, Inc.

Officers Robert J. Ansbro President The New York Roofing Company Robert Weiss 1st Vice President A.J. McNulty & Co. Inc.

John A. Finamore Treasurer Jordan Panel Systems Joseph Leo Secretary Atlantic Contracting & Specialties, LLC

Board of Directors Joseph Azara Jr. C.D.E. Air Conditioning Christine Boccia JD Traditional Industries Dan J. DeVita Penava Mechanical Corp.

Jerry Liss A. Liss & Co. Inc.

John Dierks Dierks Heating Company, Inc

Alan Nathanson (Honorary) Forsythe Plumbing & Heating Corp.

Andrew Drazic ATJ Electrical

Lawrence Roman WDF, Inc.

Peter Cafiero 2nd Vice President Island Painting

Scott Rives Woodworks Construction Co, Inc.

Brent Fleisher Environet Systems

Arthur Rubinstein Skyline Steel Corp.

James Flynn Independent Temperature Control

Robert Samela A.C. Associates

Patrick Gallagher BP Mechanical Corp.

Gary Segal (Honorary) Five Star Electric Corp.

Stephen Gianotti Arcadia Electrical Co., Inc.

Lawrence Weiss A.J. McNulty & Co., Inc.

Craig Gilston Gilston Electrical Contracting Gloria Kemper Recon Construction Corp. Randy Rifelli United Iron, Inc. Guy VandeVaarst Firecom Inc. John Villafane Eldor Electric Upcoming Events General Membership Meeting Wednesday, November 12 5:30PM Board of Directors Meeting Tuesday, November 18 5:30PM

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