The Professional Contractor - Summer 2017 by The Warren Group

THE PROFESSIONAL

SUMMER 2017

A Publication of the Associated Subcontractors of Massachusetts, Inc.

East Boston Comes Into Its Own Major Projects on the Waterfront Offer Major Opportunities for Subcontractors

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THE PROFESSIONAL

A Publication of the Associated Subcontractors of Massachusetts, Inc.

cover story features

18 East Boston Comes Into Its Own 04 PRESIDENT’S VIEW Farewell Reflection 05 ASM BIDS FAREWELL TO MONICA LAWTON 06 ASM WELCOMES CARRIE L. CILIBERTO, ESQ. AS CEO 08 LEAN CONCEPTS Earning a “White Belt” in Lean principles

20 LEGAL BRIEFS Recent Court Decisions Takes Aim at “No Damage for Delay” Clauses 22 GOLF TOURNAMENT Another Year, Another Great Tournament 25 MEMBER NEWS 26 PROJECT PHOTO GALLERY

10 INVESTING Investing in the Younger Generation 12 FLEET SAFETY Fleet Safety Data: Driving Serious ROI for New England Construction 16 MEMBER PROFILE Acadia Insurance Program with ASM Celebrates 15 Years of Success

The Professional Contractor

PRESIDENT’S VIEW

BY JOSEPH H. BODIO

Farewell Reflection

s my term serving as ASM’s president comes to a close, I can’t help but reflect on the past two years as I plan for my next venture. For more years than I’d like to admit, I have wanted to serve as president for ASM and NECA and am incredibly grateful to have achieved these goals. ASM is a tremendous organization that provides incredible benefits for its members. I have learned a great deal working with them not only during my presidency, but also as a long-standing member. However, as I reflect on these last two years, I am joined by the same thoughts I had when I wrote “Are You Ready?” last December, regarding retirement and whether any of us have truly prepared sufficiently for what the future may bring. Have I done enough during my presidency where I can confidently walk away without regrets, trusting that I have reached the end of my term having achieved all the goals I had set for myself? After contemplating this for quite some time, I do believe that I made the best of my two-year term, and I hope I leave ASM in a better place than when I came onboard. After reminiscing over the many things that have occurred over the last 24 months, it is strange to think just how fast two years can fly by and how many changes can be made in that timespan. I had mentioned in one of my

recent columns, “The Technology of Tomorrow is Here, and We Need to Prepare For It”, that technology is catapulting our industry forward quicker than we ever dreamed possible. Projects that would have taken at minimum five or ten years to complete are now being completed in just a mere couple of years. A perfect example of this is the developments being made to the Boston skyline. In the span of my ASM presidency alone, we have seen a dramatic change in the city’s developments and in just a couple more years, the city I knew decades ago will become a mere memory, making room for innovative buildings, structures, and roadways that reflect today’s modern age. It is truly remarkable what our industry has been capable of and I cannot be more excited to see where it is headed in the years to come. In closing, I would like to sincerely thank ASM and its members for allowing me the great privilege of serving as your president for the last two years. During my tenure, I have shared great laughs, built new friendships and made lasting memories that I will cherish long after I step down. It does bring me some sadness to be moving on as it has been an honor holding this position, however it is time for someone new to step forward and take ASM to new heights. Thank you again for allowing me to serve as your president, and I wish the best of luck to all of you. s

Joseph H. Bodio is founder, president and CEO of LAN-TEL Communications in Norwood. He can be reached through ASM at 617-742-3412 or by email at president@associatedsubs.com.

The Professional Contractor is published by Associated Subcontractors of Massachusetts, Inc. 15 Court Sq., Suite 840 Boston MA 02108 tel 617-742-3412 | fax 857-453-4338 mail@associatedsubs.com | www.associatedsubs.com

ASM Officers

President: Joseph H. Bodio, LAN-TEL Communications, Inc. President-Elect: Susan M. Mailman, Coghlin Electrical Contractors, Inc. Treasurer: Russell J. Anderson, Southeastern Metal Fabricators, Inc. Vice President: Steven P. Kenney, N. B. Kenney Co., Inc. Vice President: Scott H. Packard, Chapman Waterproofing Company Past President: Richard R. Fisher, Red Wing Construction

Spring 2017

ASM Directors

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©2017 The Warren Group, Inc. and Associated Subcontractors of Massachusetts, Inc All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher.

APPRECIATION

ASM Bids Farewell to Monica Lawton

ust a few weeks ago, ASM said goodbye to CEO Monica Lawton, who retired after 20 years at the helm of ASM. For many subcontractors, it may seem hard to believe, as Monica was the only head of ASM they’d ever known! But looking back, it’s clear that many of ASM’s signature victories on behalf of subcontractors were achieved under her direction. Twenty years ago, the state’s “filed sub-bid law” was under fire, with much of the blame surrounding public construction directed at subcontractors. Facing such criticism – regardless of merit – many associations would have backed down. But led by Monica’s guidance and determination, ASM’s defense of the law helped save competitive bidding and led to the Public Construction Reforms of 2004. More commonly known as the Construction Manager at Risk, these reforms fostered better project oversight, gave the state new flexibility in procurement, and is still in practice today. In fact, these laws are now considered a model for other states. ASM also brought major improvements to private construction by spearheading the Prompt Pay Law in 2010, which greatly improved subcontractors’ cash flow and ability to quickly mobilize resources for future projects. 2014 saw ASM collaborating with numerous industry groups and trade associations to pass the Fair Retainage Law, which expedited the release of retainage, and limited it to 5 percent ASM’s accomplishments under Monica’s tenure didn’t stop there. In 2014, ASM took the lead in successfully coordinating industry opposition to a proposed 36 percent increase in unemployment insurance rates for contractors – which resulted in the Legislature actually lowering rates instead! That might sound far-fetched to many, but not to those who know Monica’s power of persuasion and ability to find common ground between the contrac

tors and public officials, all of whom naturally have a deep and vested interest in the state’s economy. Some executives may have been content with several major legislative victories in less than five years, but not Monica. She helped organize industry feedback to the Attorney General on the Commonwealth’s new Sick Leave Law, and won cost-saving changes to the final regulations. Even in the days leading up to her recent retirement, Monica has kept her foot squarely on the gas pedal by resisting proposed legislation that would impose vicarious liability on business for wage violations, which would be unprecedented in Massachusetts’ long history. Under her leadership, ASM has earned the respect of the legislature, state agencies, and the entire construction industry through hard work, persistence, and integrity. Susan Mailman, president of Coghlin Electric and president-elect of ASM, may have summed it up best: “[to] have had the pleasure of working with Monica is to know passion. The subcontractors of Massachusetts owe Monica a debt of gratitude for her unwavering advocacy on behalf of the construction industry.” s The Professional Contractor

WELCOME

ASM Welcomes Carrie L. Ciliberto, Esq. as CEO

arrie Ciliberto joined ASM on July 20 to begin her tenure as CEO. She brings a wealth of construction industry experience to ASM, having worked at The Associated General Contractors of America (AGC) in Washington, D.C. for nearly nine years. At AGC, Ciliberto held dual roles as senior director and counsel of contracts & construction law, and as deputy executive director & counsel for ConsensusDocs LLC, a

unique coalition of 40 leading industry associations that work together to produce fair and balanced standard design and construction contracts. Prior to her tenure at AGC, Ciliberto was the founder and principal of a Colorado law firm specializing in water rights, property and land use law. She represented a wide range of clients, from individuals to government entities for more than 10 years. Prior to her legal career, she was a marketing and advertising professional for a number of high-profile local and national corporations. “It is truly an honor to be taking the lead from someone as passionate and talented as Monica Lawton,”

Ciliberto stated. “I am excited about the opportunity to continue to serve this great industry by representing ASM subcontractors. I look forward to helping our members grow their businesses, and further strengthening the leadership role ASM has built in the industry.” While she is new to New England, Ciliberto is already impressed by the friendliness she’s encountered during her transition to Boston, and by the knowledge and dedication of ASM’s board of directors, whom she’s already met. You can contact her at cciliberto@associatedsubs. com. Please join us in welcoming Carrie aboard! s

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Spring 2017

Thank you Monica Lawton for many years of hard work and dedication to ASM Contractors. Youâ&#x20AC;&#x2122;ve made a positive and lasting impact on our industry.

The Professional Contractor

LEAN CONCEPTS

BY KELLY MEADE AND NICK MASCI

Earning a “White Belt” in Lean principles

Visual management students, with assistance from J&M Brown Company employees, celebrate improvements to a prefabrication area.

Newly minted White Belts and Lean trainers from Lean Fundamentals. Pictured, left to right: Peter Gormley, New England Waterproofing; Brad Aldinger, Haley & Aldrich; Carson Milgroom, New England Waterproofing; Chris Guarino, Commodore Builders; Lauren Larson, Commodore Builders; Kate Merrill-Duhaime, Haley & Aldrich; Pete McGuane, N.B. Kenney Company; Kristine Gorman, Jacobs; Martine Staublin, STV | DPM; Cole Worthy, Haley & Aldrich; Kelly Meade, Haley & Aldrich; Michael Bongiorni, Northstar Project & Real Estate Services; Rachel Woodhouse, Dyer Brown Architects.

his past spring, Haley & Aldrich hosted multi-day Lean Fundamentals and Visual Management training courses for 30 architects, owner/developers, project managers, subcontractors and construction managers in Massachusetts – including several who are members of ASM. The training courses were offered at no cost to qualified participants from small businesses, thanks to the Commonwealth of Massachusetts Workforce Training Fund grant. In this article, we look back at the courses and the favorable reactions from participants – and we also look ahead to the next series of training courses starting in September. If you are an AEC industry professional interested in learning more about Lean concepts and practical application, we encourage you to attend! (See more details at the end.) Lean Fundamentals introduces participants to Lean principles and tools through a “learn-by-doing” approach, and participants develop the ability to use Lean principles to help better understand and address challenges in their daily work and learn techniques for better collaboration with customers and team members. 8

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In the spring Fundamentals courses, participants tackled challenges at their own organizations, such as improving proposal processes, centralizing project information and providing more accurate project scopes and budgets. Throughout the course, attendees collaborated to draft problem statements, identify the root cause of their challenges, and develop A3s* for solving their challenges. With a grounding in Lean Fundamentals, participants can take the visual management course. This course is a Lean concept that’s focused on improving the flow of work, developing the ability to detect when work is off track so you can quickly adjust and fix problems and empowering your team to see the big picture of a process so you know what actions to take and who to involve. The course is structured around practical exercises that encourage learning by doing. For example, in one exercise called the “Marshmallow Challenge,” teams had 18 minutes to build the tallest tower that will support a marshmallow by using 20 strands of spaghetti, a yard of masking tape and some string. Neither team was successful, but the exercise taught principles such as “squashing” the difficulties of innovative teamwork and

Working through the root causes of a problem as a team. Pictured, left to right: Joe Giurleo, Bay State Wiring; Jim Stanislaski, Gensler; Bryan Gammons, Haley & Aldrich’ Matt Ellsworth, Wilson Architects

the downfalls of hidden assumptions. Both teams finished the exercise by conducting a Root Cause Analysis to analyze how they could approach the project more succesfully. Feedback from these courses has been very positive, with 100% of attendees saying they were satisfied or very satisfied with the quality of the training content and materials, and would recommend the courses to peers in the industry. In the words of several who attended in the spring: “The training provides learning and doing at the same time – it was an opportunity for me to solve an actual problem.” “It was an excellent use of my time and taught me how to use new tools that will make me a more effective collaborator and problem solver.” “I think everyone could benefit from knowledge of how to look at problems and to use an A3 to get to the root of the problem so that you can work on fixing the right issue.” As photos from the workshops show, the Lean training is dynamic and handson, fostering team-building and cooperation to solve real-life problems. The next series of Lean Fundamentals sessions will start September 6, and

Paul Arthur shows students electric prefabrication methods at J&M Brown Company

run one half-day per week for four weeks, ending October 4. It will be followed by another series starting October 11, and likewise will run for four weeks, ending November 8. All Lean Fundamentals sessions will take place from 8 AM â&#x20AC;&#x201C; 12 PM at Haley & Aldrich in Charlestown. For more information on the courses, or to register and determine your eligibility to take this training at no cost, please visit info.haleyaldrich.com/leanworkshop-series. Register for the September series by August 23, and the October series by September 27. *An A3 is single-page story written to build problem-solving consensus that follows the scientific method. The name A3 refers to the paper size, where an A3 is the international equivalent of an 11 X 17 sheet of paper. Toyota pioneered the use of A3s, some referring to it as Toyotaâ&#x20AC;&#x2122;s Secret Weapon. s

The Marshmallow Tower Game helped students see the difficulty of forming an innovative team. Pictured, left to right: Peter Gormley, New England Waterproofing; Morgan Vanderburgh, Gilbane Building Company; Joe Giurleo, Bay State Wiring; Michael Bongiorni, Northstar Project & Real Estate Services

Students learn how to use Visual Management to track knowledgebased professional services at Triumph Modular, Littleton, MA Kelly Meade and Nick Masci are Senior Lean Practitioners at Haley & Aldrich. Kelly Meade can be contacted at kmeade@haleyadlrich.com; and Nick Masci can be contacted at nmasci@haleyaldrich.com.

The Professional Contractor

INVESTING

BY KATELYN GREGOR, CPA, MSA | AUDIT SUPERVISOR, BLUMSHAPIRO

Investing in the Younger Generation

What can the skilled labor industry do breathe new life into its rapidly aging workforce?

he construction industry is booming. Ground is being broken on new construction projects across the country at a rapid pace, and, especially if President Trump’s proposed $1 trillion infrastructure investment plan comes to fruition, many in the industry believe that growth will continue. However, if the industry doesn’t address its aging workforce, it will struggle to meet the market’s growing demand. We touched on this topic last July, writing that the industry was on the verge of creating a “significant imbalance between the volume of available work and available workers.” Unfortunately, one year later, that imbalance is still a major issue. According to the U.S. Bureau of Statistics, the construction industry’s percentage of active tradespeople between the ages of 55-64 has more than doubled since 2002, most recently coming in at 22 percent of the industry’s workforce. When you combine that group with workers in the 45-54 age range, you’re looking at close to 35 percent of your entire workforce. Over the next decade, the majority of that group will begin to retire, which in other industries would be fine. The older generation would be replaced by a new crop of talent, and the professional world would continue turning. But, in the construction industry, that new crop of talent simply isn’t there. The same U.S. Bureau of Statistics survey shows that just 14 percent of the industry’s current workforce is between 19-24 years old. And that’s the problem. 10

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What happened? Why aren’t young workers joining the ranks of the skilled labor industry? Some industry leaders believe that construction jobs have been stigmatized by a growing portion of American families. Many young adults – especially those who come from educated families or grow up in more affluent communities – never consider a career in the trades. They’re taught from an early age that the path to a good life and a financially stable job goes through traditional colleges and universities, not work sites and trade schools. Though shortsighted and perhaps unfair, this stigma may have been created from rational roots. Shortly after the Great Recession, it could certainly be argued that the construction industry wasn’t an attractive way to launch a career. With a struggling economy, many businesses and government agencies put their construction projects on hold, putting many laborers – folks who rely on steady projects in order to earn a living – out of work. However, that temporary dip in available work has since subsided. According to the National Association of Homebuilders, there are currently more than 200,000 unfilled construction jobs in the United States – a jump of more than 80 percent in the last two years. In Massachusetts alone, according to Construction Dive, there are 14 million square feet of property currently under development, or “shovel-ready.” That tells us two things: the first is the sheer volume of available jobs shows the central point of this article – that the labor industry is facing a talent shortage created by an aging workforce – seems to be accurate; and second, an 80 percent increase shows that, since the economy is recovering, the rate of new construction projects getting approved is getting faster and faster. As the economy recovered, so did the construction industry. Today, especially here in New England, construction is among the fastestgrowing industries in the country. More importantly, it’s an industry that is ready to support – and, quite frankly, needs – an influx of young, available talent. So, what can we do? How can the construction industry attract young talent? Those in the industry understand the benefits of building a career in construction. Laborers can earn a solid living at a young age, and have plenty of opportunities throughout their careers to advance

through the ranks. Want to move into management? You can take classes while you’re working to accomplish that goal. Want to eventually launch your own contracting business? You can learn on-the-job skills and meet necessary contacts while you’re working and accomplish that goal, too. So, the question the industry needs to answer becomes: why aren’t young people aware of these opportunities? And the answer begins with marketing. Industry leaders need to sell their profession as one that is attractive, marketable and financially stable. To do this, construction professionals should make an effort to reach their target audience early; having a presence at high schools and community colleges is essential. There are plenty of young students who are anxious to start a career, but don’t know where to begin. Construction professionals should also try to reach their target audience on their turf: utilize social media – and even television – to increase the industry’s popularity. On this point, consider what

the Food Network has created over the last five years; not long ago, food service jobs carried a similar unfortunate stigma of being dead-end careers or fallback options for students with bad grades. Now, however, walk into any elementary school and you’ll find a handful of first-graders who dream of becoming chefs or working in restaurants. The construction industry has an opportunity to use the media to increase awareness about all of the options a career as a skilled tradesperson has to offer. Finally, take a hard look at your own company: According to an MRINetwork Study, around 40 percent of job-seeking millennials say they value a company’s reputation in the market; however, nearly half of the recruiters polled in the same study admitted their clients had not developed an employer brand that is attractive to millennials. If you want to attract the young workers that your company needs to thrive in today’s economic environment, you need to make sure those young workers know exactly who you are. s

Katelyn Gregor, CPA, MSA, is an audit supervisor at BlumShapiro. She can be reached at kgregor@blumshapiro.com. BlumShapiro is the largest regional business advisory firm based in New England, with offices in Connecticut, Massachusetts and Rhode Island. The firm, with over 450 professionals and staff, offers a diversity of services which includes auditing, accounting, tax and business advisory services. In addition, BlumShapiro provides a variety of specialized consulting services such as succession and estate planning, business technology services, employee benefit plan audits and litigation support and valuation. The firm serves a wide range of privately held companies, government and non-profit organizations and provides non-audit services for publicly traded companies.

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The Professional Contractor

FLEET SAFETY

BY KEITH SIGNORIELLO

Fleet Safety Data: Driving Serious ROI for New England Construction

n the era of big data, company leaders routinely leverage numbers to fuel strategic growth and innovation. Now, forward-thinking CEOs are harnessing a new category of business intelligence (BI) to inform the everyday, field-based operations that define so many major industries: construction, manufacturing and retail. In doing so, they’re lowering insurance premiums, controlling employee benefit costs, and optimizing employee retention. What is this new BI focus area? It’s fleet safety. And it’s driving home some serious returns… Keith Signoriello is the owner and principal of C&S Insurance, which specializes in tailored protection, workers’ compensation, and loss prevention for Massachusetts contractors. He can be contacted at keith@candsins.com or at 508-339-2951.

The High Cost of a Mismanaged Fleet

Transportation incidents lead to more on-thejob fatalities than any other type. In 2015, roadway incidents accounted for 1,264 deaths—nearly twice the number of deaths caused by falls. Fatal roadway incidents are also on the rise, according to U.S. Bureau of Labor Statistics data, which shows a nine percent increase over 2014 totals, and a 15 percent increase compared to 2013. The National Safety Council’s Injury Facts report echoes the concern, highlighting transportation incidents and business continuity issues. In 2013, employers experienced more than 44,000 incident cases resulting in lost work days. This makes transportation accidents the fourth leading cause of productivity loss, following an injury. Then, of course, there are the insurance implications. Vehicle-related incidents and violations quickly add up in the eyes of commercial insurance

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carriers. When the risk level becomes too high, carriers bring in reinsurers, and companies wind up with “ceded” policy rates, which are often thousands higher than standard policy rates. Digging out of a ceded insurance position can mean years in the penalty box. When companies get to this point, they’re either looking to hire a full-time risk management executive (with major costs for recruiting, salary, benefits), or they’re simply resigned to accepting insurance hikes. But there’s also a third option.

Partnership Paves the Way for Safety, Savings

Together with experienced fleet safety experts, C&S Insurance is perfecting a collaborative approach to transportation risk management. Part of what makes this new option unique is its scalability; insured clients can contract with safety consultants based on their budgets and operational needs. In the end, this approach takes companies

out of ceded policies, reduces roadway incidents, achieves regulatory compliance, and delivers major returns in the form of safer workplaces and employee satisfaction.

Putting Data in the Driver’s Seat Creating a custom set of fleet safety policies is job one. Our

consultants start the process by gathering company-specific data from a variety of sources: insurance loss runs, reportable injuries, roadside inspection reports and a Safety Measurement System report from the Federal Motor Carrier Safety Administration to see how a given continued on page 14

Monica, Thank you for your years of dedicated services at the ASM. Congratulations and wishing you the best for your retirement.

The Professional Contractor

Fleet Safety continued from 13

client compares to similarly-sized/structured peers. There’s a plethora of information available: driving records; compliance violations; CSA scores – all of these are directly correlated to a company’s collision risk. All too often, however, the data isn’t making it to the right audience. Together with a fleet safety expert, business leaders can get a clear picture of their risk profile and zoom in on the operational changes and training needed to yield the highest return on investment. A quick look at statistics from the American Transportation Research Institute (ATRI) proves the point. ATRI correlates commercial driver data with future crash predictability. Their 2011 report reveals, among other compelling points, that a truck driver’s failure to use a turn signal increases his or her likelihood of a crash by 96 percent. Cell phone use, speeding and previous collisions are also strong indicators. Insurers put a lot of stock in these data points, too. Companies that can show they’re applying fleet safety research to hiring and operational decisions can secure better rates. At C&S, we outline these efforts in our clients’ insurance narratives; it makes underwriters significantly more confident.

Getting Fleet Safety in Gear

Still, fleet safety program implementation is not without a few roadblocks. Management buy-in is a big one; not recognizing there’s a problem is even more fundamental. A surprising number of company leaders aren’t aware of the

violations their operators are racking up, or even how many vehicles comprise their organization’s fleet (think graders, loaders, pickup trucks and anything else that isn’t a tractor trailer). Sometimes key data is siloed in disparate departments. Human resources, for example, may not be sharing information on employee issues outside of work. Payroll may not be contributing valuable metrics on hours logged. Partners like C&S Insurance and risk management consultants are adept at aligning these sources. After creating a framework with procedural documentation, clearly-defined roles and responsibilities, C&S consultants then dig into the hiring process, along with training needs. Here again, safety recommendations are carefully tailored to address an organization’s specific risk profile and

WE KNOW THERE’S MORE ON YOUR MIND THAN THE SAFETY OF A BUILDING ALONE.

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the types of losses it is seeing. Experts are available to teach defensive driving techniques, pre-trip inspection protocols and remedial training following a collision. Commissioning veteran commercial truck drivers as teachers goes a long way toward overcoming another big hurdle: disengagement. Successful risk management can’t happen from a cubicle; it has to be hands on. And you can’t talk the talk if you haven’t walked the walk – or driven commercially, as it were. When drivers become engaged, that’s when companies start to see real benefits.

ROI Both On and Off the Road

Our fleet safety formula delivers on multiple fronts: enhanced compliance, safety performance, reduced turnover and improved operations. But insurance savings is often the initial draw. Like workers’ compensation insurance, commercial auto insurance is based on an experience modification factor. Collisions and citations bring that number down, costing companies more in insurance rates. Our one-of-a-kind partnership is helping contractors dramatically reduce rates and out-of-pocket costs. It’s allowed us to secure coverage through carriers who might have otherwise turned a company down. In some cases, our insureds are seeing six-digit savings. Keeping workers satisfied and engaged is another key benefit – especially in the current job market. A 2014 survey conducted by AGC found that 25 percent of construction companies were turning down work because they didn’t have the manpower to complete projects on time and under budget. The Department of Labor’s job site estimates a 13 percent increase in construction openings heading into 2024. In Massachusetts alone, companies will need to fill another 580 laborer roles in the coming years. Meanwhile, according to industry analysts, turnover rates are nearly 40 percent for construction employees under age 25. With a safety program in place that empowers and validates professional drivers, construction companies can retain the kind of people who are invested in doing a great job. This results in a better operation, lower risk, and ultimately – based on our experience – a striking success story. s

The Professional Contractor

MEMBER PROFILE BY MIKE FLAIM

Acadia Insurance program with ASM celebrates 15 years of success

“SINCE THE INTRODUCTION OF THE DIVIDEND IN 2003, ACADIA IS THRILLED TO HAVE RETURNED OVER $5 MILLION TO QUALIFYING ASM MEMBERS.”

cadia Insurance, a Berkley Company, was established in Maine in 1992 in response to the Maine workers’ compensation crisis. This was a crisis in which all but one insurer had stopped offering worker’s compensation coverage, as it became too costly to write policies in the state. Over the next 10 years, additional Acadia offices were opened in New Hampshire, Vermont, Massachusetts, Connecticut and New York. The Massachusetts office opened in 1998 in Marlborough, where it remains today. Because Acadia was born out of a regional workers’ comp crisis, its roots are in providing insurance solutions when and where they’re needed most. As such, Acadia offers property and casualty insurance products and services to a wide array of small and mid-size businesses located in the Northeast. The specific insurance products provided can include property, inland marine, general liability, workers’ compensation, commercial auto and umbrella coverages. Acadia believes in making a lasting difference in the communities they support and know that it is most effective to have local teams determine the best way to have a positive impact on their community. Since 2008, Acadia is proud to have provided over $650,000 to local Massachusetts charities as well as donated 4,500 hours of service. Examples in Massachusetts include United Way of Tri County, Special Olympics, Framingham Food Pantry and various other worthy organizations that provide services within Massachusetts. Acadia continues to foster the entrepreneurial spirit that helped them become the leading property and casualty insurance provider they are today and their team consistently looks for solutions that challenge the status quo. One of their favorite guiding principles is to provide outstanding customer service even if it makes their jobs more difficult. This is best demonstrated by their investment in relationships and by their ability to listen to their customers. They work exclusively with and support the independent agent and believe their franchise value strategy has helped them develop meaningful relationships with the best talent in the industry. During their 25 years in business, Acadia has developed particular expertise in the construction, Mike Flaim is an associate editor with The Warren Group, publisher of The Professional Contractor

Spring 2017

transportation and wood products industries, and offers a broad range of service and product offerings to support these segments. Acadia understands the needs of subcontractors, and their underwriting team works to develop insurance programs that support their customers regardless of account size. Risk management is a critical component of this dynamic, and the company can offer tools such as the Synergy Risk Management program to qualifying members. This particular program integrates the expertise of underwriting, loss control and claim professionals, working with customers and their insurance agents to help control exposures that can lead to accidents. This approach to risk management and construction expertise helps set Acadia apart. Since the company’s inception, Acadia has worked extensively with the contracting industry and believes that a strong partnership exists when you work to understand the needs of a particular segment. They invest in risk expertise with a staff of qualified loss control, claims, audit and underwriting professionals. This allows Acadia to create a combination of superior coverage, exceptional loss control service and outstanding claims expertise. In 2002, Acadia and ASM were faced with an intriguing opportunity. The marketplace for construction was undergoing a significant shift and there were limited commercial insurance options available to many contractors. During this time, the Mazonson Insurance agency (now Cross Insurance), approached Acadia with the concept of a “group program” and coordinated a meeting between Acadia and the Associated Subcontractors of Massachusetts. It was a unique concept that immediately resonated with all parties and a program was developed. It is an all-lines commercial insurance program offered to members of ASM. As an added benefit, participating members have the opportunity to earn a dividend. Should the group loss ratio meet or exceed the targeted threshold, a dividend fund is established which is then shared amongst individual members who meet the same loss ratio threshold. Since the introduction of the dividend in 2003, Acadia is thrilled to have returned over $5 million to qualifying ASM members. Acadia Insurance is grateful for the relationship with ASM these last 15 years, and is appreciative of the opportunity to serve the members of the Association. Acadia looks forward to working together for many more years to come. s

Our Association Honors Monica Lawton A true class act. Smart and honest. A wonderful person and leader. Our entire industry will miss you.

Daniel Bent President Joseph Valante Vice-President John Marani Assistant Clerk-Treasurer Paul Dionne Assistant Clerk-Treasurer Joseph Cannistraro Immediate Past President Hugh Kelleher Executive Director

www.GreaterBostonPCA.com

Jeremy Ryan Incoming Executive Director The Professional Contractor

East Boston Comes Into Its Own Major Projects on the Waterfront Offer Major Opportunities for Subcontractors By Scott Van Voorhis

hen it comes to new work on marquee projects, the East Boston waterfront is the gift that keeps on giving. Dozens of subcontractors have landed work on the big luxury apartment, retail and restaurant projects taking shape on the neighborhood’s once rough-hewn but now fast transforming harbor side. Under construction and leading the way are the $225 million Clippership Wharf project and the $115 million phase two of Portside at East Pier. And among those subcontractors happily in the thick of all that development activity on Eastie’s waterfront is Wayne Griffin of Wayne J. Griffin Electric, Inc. A major Holliston-based subcontractor with offices around the country, Griffin Electric is working on two big projects by the harbor in East Boston – and hoping to land more. Griffin will have 60 electricians and other employees working at Clippership Wharf and Boston East, another big apartment project taking shape along the waterfront. “It is good work to get,” said Griffin, who said it is exciting to be taking part in the revitalization of the neighborhood’s waterfront. “East Boston is a unique blend of old and new.” Clippership Wharf is both the biggest project Griffin is working on along the East Boston waterfront as well as in the top third in terms of overall size for this company, Griffin said. Developer Lend Lease kicked off construction on the 12-acre, mixed-used development a year ago, with

opening day slated for the fall of 2018. The new harbor-side address will have on offer nearly 400 apartments and 80 condos, as well as a café, a restaurant, retail and community space. The rental side, spread over two buildings, is called Dox, with the condos to be marketed in a separate building, Slip65. Half of first block of 80 units went under agreement in a single weekend in late June. Griffin is also doing work on developer Trinity Financial’s $71 million Boston East project, fast taking shape on the neighborhood’s waterfront. Boston East a mix of 174 market-rate apartments and 24 affordable, below-market rentals. Boston East will also include a kayak ramp, a Harborwalk and a community art gallery. Cranshaw Construction is the general contractor, with other subs including LM Heavy Civil Construction and Helical Drilling. “It’s an exciting time for us,” Griffin said. “The old properties in East Boston have great structure and character, but some of the new properties will blend in very nicely.”

Eastie Keeps Teams Together

Meanwhile, Roseland Property Company is busy building out the second phase of its Portside at East Pier project, with 296 residential units taking shape in a pair of new, five-story buildings. Subcontractors working on that project include W.L. French Excavating Corporation and J.F. White Company. “We’re proud that many of the state’s top subcontractors are

Scott Van Voorhis is a freelance journalist and columnist with a focus on residential and commercial real estate. He can be reached at editorial@thewarrengroup.com

Spring 2017

making such major contributions to these important projects,” said Monica Lawton, former CEO of the Associated Subcontractors of Massachusetts, a trade association that includes many of the subcontractors working on East Boston construction projects. Still, success has not come overnight for Griffin and other subs on the East Boston waterfront, with a number of big projects unable to line up financing and move into construction for years thanks to the Great Recession and its aftermath. Clippership Wharf was first proposed before the recession. Housing developer Winn Properties spent years trying to get the project into construction. Roseland began construction on the first apartment building of its Portside at East Pier project in 2006, only to have to stop work after the recession hit. The developer finally opened up its debut building, featuring 176 luxury waterfront apartments, in 2014. “Prior to the recession, there were several proposed waterfront development projects that would revitalize this area, and create hundreds of jobs in the process,” Lawton noted. “It’s very encouraging to see that these projects have moved forward.” Griffin said he is now pursuing work on a pair of new projects being planned for the East Boston waterfront, though he isn’t at liberty to name them yet. The push comes as the company winds up work on some other, sizable projects across New England. However, it’s more than just replacing one project with another, he said. In addition to the appeal of working on marquee projects that are helping reshape and revitalize a venerable Boston neighborhood, Eastie’s dead-center location in the Greater Boston area is a big attraction. Big, centrally located projects like Clippership and Boston East enable Griffin Electric to draw on employees living across the Boston area, including out in the suburbs along the Route 128 and I-495 beltways. A steady stream of work within 45 minutes to an hour’s drive of many of his crew members’ homes help the company keep teams working together over time on various projects, he said. “We want to maintain their employment together as a team,” Griffin said. “It is very beneficial that East Boston has picked up.” s

We’ve teamed up to help Minority- and Women-owned subcontractors move up!

Using MassHousing’s new $1 million Construction Contract Finance Program, MGCC provides contract financing, working capital and technical assistance to Minorityand Women-owned subcontracting companies on MassHousingfinanced projects.

Program Features:

• Loans between $25,000 and $200,000

• Funds can be used for advance labor, materials, and other costs

• Funds are available on a first-come, first-served basis

Only qualified applicants will be approved.

Learn more about the CCFP at masshousing.com/ccfp or contact Rob Williams: rwilliams@massgcc.com, (617) 337-2823

LEGAL BRIEFS

BY EMANUEL N. BARDANIS, ESQ. & JAMES ANDERSON, ESQ.

Recent Court decision takes aim at “no damages for delay” clauses

ecently, the Appeals Court issued a decision in the case of Central Ceilings v. Suffolk that allowed recovery of extra costs on a troubled project, despite a “no damages for delay” clause. The decision is highly favorable to subcontractors, as it: (1) reaffirms that “no-damages-fordelay” clauses are to be strictly construed against the drafter (i.e., the prime contractor or owner), rather than the subcontractor; (2) validates the “total cost” method of computing damages, often the only one available on troubled jobs; and (3) awards substantial attorneys’ fees to the subcontractor, including fees incurred through the appeal process. The dispute in Central arose out of the construction of three dormitories at Westfield State University (“Project”). Suffolk subcontracted with Central to install exterior heavy gauge stud and sheathing, interior light gauge stud and drywall, and hollow-frame doors. The Court found that from the start, Central was hindered by Suffolk’s failure to perform its obligations, including: failing to coordinate the

work of other trades . . . whose work necessarily had to be completed before Central could complete its own; failing to establish proper elevation, column, and control lines, from which Central worked to construct the building in accordance with the plans; failing to provide for the timely and properly coordinated delivery of the hollow metal door frames to be installed by Central; and failing to ensure that the buildings were weather-tight and properly heated . . . . As a result, Central was forced to work out-of-sequence, to perform numerous “go-backs,” and to work atop other trades, i.e., a “stacking of the trades.” Despite the havoc this caused, Suffolk refused to grant any schedule extensions, as it stood to receive a $200,000 bonus for finishing on time or face substantial liquidated damages if it was late. Suffolk thus ordered Central to increase its manpower, which Central did at a cost of $321,315 on a subcontract worth $3,606,476. Suffolk completed on time and earned the bonus, but refused to pay Central for its extra work.

Thank you, Monica, for your years of dedicated services at the Associated Subcontractors of Massachusetts. Monica, you have always been helpful, hardworking and a true pleasure to work with. We will miss you but wish you well in your new journey. Congratulations on your retirement. www.cap-inc.net

Spring 2017

At trial, Suffolk alleged Central’s claim was barred by this “no-damagesfor-delay” clause: The Subcontractor agrees that it shall have no claim for money damages or additional compensation for delay no matter how caused, but for any delay or increase in the time required for performance of this Subcontract not due to the fault of the Subcontractor, the Subcontractor shall be entitled only to an extension of time for performance of its Work . . . . The Court rejected this argument, holding: (1) Suffolk was barred from using this defense as it refused to grant time extensions; and (2) the clause did not apply in any event, as Central was not seeking to recover for “delay,” i.e.,

the cost of an idle workforce, but for an increased workforce needed to cure problems caused by Suffolk. This strict reading allowed Central to recover. The Court also upheld Central’s use of the “total cost” method to prove its damages, one which “looks to the difference between the amount bid for the work and the actual cost of the work.” Courts heavily scrutinize this approach, so a plaintiff seeking to use it “must prove (1) the nature of the particular losses make it impossible or highly impracticable to determine them with a reasonable degree of accuracy; (2) the plaintiff’s bid or estimate was realistic; (3) its actual costs were reasonable; and (4) it was not responsible for the added expenses.” Central met this high bur-

den. Moreover, its expert testified that the total cost method was the only way to compute damages, as the detailed records needed for a “measured mile” analysis did not exist and Central could not have been expected to have them, a position affirmed by the Court. Finally, it bears noting that the Court upheld an award of $471,682 in attorneys’ fees under the bond statute, chapter 149, §29, and noted that additional fees would be assessed for the appeal. Accordingly, prime contractors should take note of this decision in any case involving bond claims. s

Emanuel N. Bardanis, Esq. is a partner, and James Anderson, Esq. is an associate at Corwin & Corwin LLP, one of the oldest and largest law firms in New England dedicated solely to construction law. The firm has been counsel to ASM since 1950. They can be reached at 617-742-3420, or at enb@corwinlaw.com and janderson@ corwinlaw.com, respectively.

Our Members Thank Monica Lawton For Her Many Years of Service, And Job Well Done! Best Wishes on Your Retirement!

New England MCA

1266 Furnace Brook Parkway, Ste. 201 Quincy, MA 02169 617-405-4221 www.nemca.org

The Professional Contractor

GOLF TOURNAMENT

Another Year, Another Great Tournament

SM’s 22nd annual golf tournament once again offered an unbeatable combination: 280 golfers from the state’s leading subcontracting firms, spectacular July weather and the two magnificent courses that comprise The International Golf Club in Bolton! The assembled subcontractors, suppliers, and their guests took a day off from their busy routines to enjoy sunshine, laughs, camaraderie and plenty of spirited golf. And even the staff at The International marveled at

the number of signs and banners from over 100 tournament sponsors (see all major sponsors listed on page 24). Thanks to their generosity, the event was a big success, providing funds critical to ASM’s member services and advocacy efforts. Special thanks go to Acadia Insurance for the special golf shirts given to all of the tournament’s participants. The fun didn’t end at the 18th hole – during the networking reception, ASM Golf Committee Chair Erik

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Jim Herlihy CIC, CRIS jimherlihy@herlihygroup.com Mark Herlihy CIC, CRIS mherlihy@herlihygroup.com

Member: Associated Subcontractors of MA | Builders Association of Central MA

Spring 2017

Maseng thanked the many subcontractors and suppliers who made the event possible. He also took time to acknowledge the accomplishments and service of outgoing ASM CEO Monica Lawton, who retired earlier this month (for more on Mrs. Lawton’s retirement, please see page 5).

Five Students Receive ASM Scholarship Awards ASM’s annual golf tournament also provides the funds needed to award five $2,000 scholarships to deserving students from ASM member families who have excelled in academic, extracurricular and community activities through their high school and college years. This year’s pool of applicants was our largest ever, and it’s our pleasure to help them reach their goals. The winners, and the companies behind them, include: •• Nicole Fernandes (Fernandes Masonry), who will be entering Williams College this Fall •• Katie Galletta (T.J. McCartney), who begins her studies at Bowdoin College this Fall •• Mikayla Herron (Herlihy Insurance), who is headed to Boston College •• John Sacco (Limbach), who will begin studying Business Finance at UMass Lowell this Fall •• Rachel Varney (Harry Grodsky & Company, Inc.), who will return to Sacred Heart University to continue pursuing her degree in nursing. We congratulate our 2016 Scholarship Award winners, and again wish to thank our generous sponsors who make this program possible! s

continued on page 24

Monica - thank you for your 20 years of tireless work for the construction industry. Your knowledge, accessibility, and quick responses have helped us navigate challenges we have faced in both the public and private construction market. Best wishes on your retirement from all of us!

The Professional Contractor

Golf Tournament continued from 23 Beverage Cart

THANK YOU, MAJOR GOLF SPONSORS Golf Balls

Closest To The Line

Golf Carts

•• Ambient Temperature Corporation •• DeSanctis Insurance Agency, Inc. •• E.M. Duggan, Inc. •• Enterprise Fleet Management

Closest To The Pin

•• Alliant Insurance Services, Inc. •• Fall River Electrical Associates Company, Inc. •• Herlihy Insurance Group •• Milwaukee Valve

Coffee Sponsor

•• Air Duct Services & Restoration

Course Banners

•• Corwin & Corwin LLP •• NorthStar Insurance Services, Inc.

Dinner

•• Airgas – an Air Liquide Company

Pin Flags

•• Travelers Insurance

•• Lockheed Window Corp. •• Siemens Industry, Inc.

•• Front Line, Inc. •• Thermo-Dynamics International, Inc.

•• Cross Insurance

Grand Raffle

Long Drive

•• Alliant Insurance Services, Inc. •• Applied Insulation Concepts •• The Greater Boston Plumbing Contractors Association •• Newman Associates

Lunch

•• Greenwood Industries, Inc. •• J.C. Cannistraro, LLC

Scholarships

Putting Green

Raffle Prizes

•• Salem Glass Company •• Wright Architectural Millwork

•• Acadia Insurance Company

Practice Tee

•• Calhess Restoration/Chapman Waterproofing Company •• NECA/National Electrical Contractors Association, Greater Boston Chapter •• New England Mechanical Contractors Association, Inc. •• Wayne J. Griffin Electric, Inc.

•• E. Amanti & Sons, Inc. •• Capone Iron •• Central Ceilings, Inc. •• Colony Hardware and Supply •• Empire Masonry •• Lynnwell Associates, Inc. •• New England Waterproofing •• Royal Steam Heater Company •• Stanley Elevator Company, Inc.

Golf Shirts

•• Viking Controls, Inc. •• Worcester Air Conditioning LLC

Registration

•• LAN-TEL Communications, Inc. •• M.L. McDonald Sales Company, Inc. •• DeSanctis Insurance Agency, Inc. •• Marsh & McLennan Agency, LLC •• E.M. Duggan, Inc. •• F.W. Webb •• Rogers & Gray Insurance •• The Suffolk Group

Reception

•• The Cheviot Corporation •• McCusker-Gill, Inc.

Score Cards

Young Professionals Leadership Tuition Grants

•• Fall River Electrical Associates Company, Inc. •• R&R Window Contractors, Inc.

Congratulations to Monica Lawton

on her outstanding career with Associated Subcontractors of Massachusetts. Thank you for twenty years of tireless advocacy, leadership and unyielding support. Your passion has been motivating and contagious. Your knowledge, organizational skills and persistence will be missed. We wish you well, Monica, and hope you enjoy the retired life!

www.corwinlaw.com “Counsel to Associated Subcontractors of Massachusetts For Over Sixty-Five Years”

The Professional Contractor

MEMBER NEWS FOR SUMMER 2017 Marshfield Harbormaster Makes Good Use of LANTEL’s Security Solutions

Being the harbormaster of the 3rd busiest harbor in Massachusetts certainly keeps Mike DiMeo busy. But his job is a bit easier with the use of video surveillance solutions provided by LAN-TEL Communications Inc. Two years ago, the Marshfield Harbormaster teamed up with LAN-TEL to significantly upgrade their security technology to monitor the harbor and surrounding areas, including the abilities to continually scan different areas and zoom-in when necessary. Since that transition to LAN-TEL’s wireless, cutting-edge technology, DiMeo can keep an eye on the town’s popular beaches and docks for property damage and theft, as well as keep track of the harbor’s incoming and outgoing boats. Future plans include the installation of more cameras along the coastline and other parts of town, and the integration of infrared cameras and technology to further improve the town’s safety and security solutions, and even the synchronization of the surveillance technology with the Marshfield Police Department’s security monitoring system.

LAN-TEL’s security system lines Marshfield Harbor

C&S Insurance Raises Money for Heart Research

Heart Walk participants at the start of the event

Daniel Bent Named President of GBPCA

Thanks to the combined efforts of its principals, employees, clients, friends and family, Cavallo & Signoriello Insurance Agency (C&S) donated/raised more than $6,600 for this year’s Southern New England Heart Walk. C&S team members gathered in downtown Providence to walk alongside dozens of other organizations, all dedicated to fighting heart disease and stroke. According to the American Heart Association, C&S’s contribution ranked 20th out of 81 companies participating in the Southern New England event.

The Greater Boston Plumbing Contractors Association (GBPCA) recently elected Daniel Bent as its president for the next two years. Mr. Bent, who currently serves as Executive VP of American Plumbing & Heating, brings three decades of construction industry experience to the position. In his capacity as president, he will be involved in collective bargaining and labor negotiations that impact the member companies of GBPCA, which represents all contractors in Plumbers Local 12. Congratulations to our good friend Danny!

Spring 2017

PROJECT PHOTO GALLERY

1A 1B Greylock Roofing (Wilmington) replaced all the roofing and sheet metal at 808 and 812 Memorial Drive in Cambridge, including extensive masonry through wall flashing repairs. 2A 2B JM Electrical Company, Inc. (Lynnfield) installed a complete temperature control system in the building office space at 60 Binney Street, a 10-story, 541,000 square-foot multi-use development in Cambridge’s Kendall Square, as well as controls in its lab spaces. 2C JM Electrical installed a complete building automation system to

Spring 2017

control the heating, ventilation, and air-conditioning at Lovejoy Wharf, a 15-story luxury condominium building in Boston’s Bullfinch Triangle, as well as the control of the life safety systems. 2D JM Electrical worked with a leading provider of building automation systems to complete the core and shell as well as the tenant fitouts for Van Ness Apartments, a multi-use development in Boston’s Fenway neighborhood. 3A 3B Longden Company, Inc. (Hudson) performed flooring work for a 1,700 square-foot ISO Class 6 clean room at Yale University.

3C 3D 3E Longden Company, Inc. installed 3,800 square-feet of tiered raised access flooring for three classrooms at the UMass-Dartmouth Charlton School of Business.

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Wi l d e r Pa rk s

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Mi c h a e l Gi l b e r t Jordan Tirone

The Professional Contractor

PROJECT PHOTO GALLERY

3F 3G Longden Company worked on a 5,000 square-foot server room design/build renovation and upgrade, including the mechanical, electrical and HVAC systems for Casa Systems, Inc. 4A Marr Scaffolding Company’s (South Boston) Shoring Division

installed over 100 shoring towers to support construction of Harvard University’s Science and Engineering Complex in Allston. 4B Daniel Marr & Son is currently erecting structural steel at the Wynn Boston Harbor in Everett.

We Stand Apart from the Crowd. As one of New England’s leading insurance brokers, we possess the skills and resources necessary to provide your business with the very best risk management, insurance and employee benefit solutions available today. We understand that each of our clients has a unique risk profile, and we provide custom-tailored services to meet specific, individual needs. Call us today to experience the difference. Property & Casualty

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Spring 2017

4C Isaac Blair & Co. installed needle shoring for four interior columns during the construction of a new addition to the Devotion School in Brookline. 4D Marr Scaffolding Companyâ&#x20AC;&#x2122;s Bleacher Division installed transportable bleachers at four locations along the Boston waterfront for Sail Boston 2017. (photo courtesy B&K Rentals)

4E Daniel Marr & Son installed a vehicular bridge and a pedestrian bridge over the MBTA Silver Line right-of-way connecting a new 1,500 spot Seaport District parking garage with Congress Street and Waterside Place in Boston, including the steel, precast plank, and metal deck installation. 5 Wayne J. Griffin Electric, Inc. (Holliston) completed electrical installation work, including phased fit-up work for office, lab and cGMP spaces, for GE Healthcare in Marlborough. s

ASM PARTNER SPOTLIGHT DIRECTORY

Show your leadership and industry pride. Airgas, an Air Liquide company, is the leading U.S. distributor of industrial, medical and specialty gases, as well as hardgoods, such as welding equipment, safety products and construction related products

Call Toll-Free 1-866-924-7427 for the Airgas location near you; or visit us on the web at Airgas.com

CONNECTING & PROTECTING THE FUTURE Frank Smith Executive Vice President Eastern Insurance Construction Division 508 942 2221 fsmith@easterninsurance.com

1.800.551.8599 - info@lan-tel.com 1400 Providence Highway, Building #3, Suite 3100 Norwood, MA 02062 www.LAN-TEL.com

Place Your Ad Here! Reasonable rates. Call 617.428.5119 or Email advertising@thewarrengroup.com

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WWW.THEWARRENGROUP.COM The Professional Contractor

In appreciation of Monica Lawtonâ&#x20AC;&#x2122;s two decades of service to the subcontracting industry as CEO of the Associated Subcontractors of Massachusetts!

Enjoy your well-earned retirement!

Spring 2017

The Professional Contractor

A SHORT TIME FROM NOW IN A BUILDING NOT SO FAR AWAY...