The Professional Contractor Winter 2011

THE PROFESSIONAL

WINTER 2011

A Publication of the Associated Subcontractors of Massachusetts, Inc.

Mass. Subcontractors Find BRIGHT SPOTS in SLOW

RECOVERY

Project of the Year – East Genzyme

Project of the Year – West Springfield College

Meet the New DCAM Commissioner Carole Cornelison

THE PROFESSIONAL

A Publication of the Associated Subcontractors of Massachusetts, Inc.

16 Recovery is Slow, But Some Sectors Are Booming Again cover story

The Massachusetts economy and the construction industry appear to have entered a recovery that’s been under way for over a year.

features

04 PRESIDENT’S VIEW

Year in Review

12 BIDDING

Understanding the Variables of

Successful Bidding 06 BEACON HILL SPOTLIGHT

Meet Carole Cornelison, 14 MARKETING AND PR

DCAM Commissioner 3 Secrets Most Social Media

Marketers Won’t Tell You 08 REO

Court Invalidates Fall River 20 PROJECT OF THE YEAR – EAST

Responsible Employer Genzyme Ordinance 22 PROJECT OF THE YEAR – WEST 10 INSURANCE

Springfield College

Purchasing Contractors’

Pollution Liability Coverage

departments 24 PHOTO GALLERY

Member Projects 2011

28 MEMBER NEWS The Professional Contractor

3

PRESIDENT’S VIEW

BY DAVID G. CANNISTRARO

Year in Review

E

very year, this issue of The Professional Contractor gives us an opportunity to look back at the year just past, to comment on changes and showcase achievements, and to look forward to the new year ahead.

This is now the fourth year this column has acknowledged the down economy, and its major impact on construction. Little did we know back in fall 2008 how enduring the recession would be. But the difference in 2011 is that the signs of rebound are growing – noticeable even in my small metro-west neighborhood, as I wrote about in the last issue. Despite stock market swings that continue to shake confidence, business continues to improve locally – which, for construction, means there is now more work to look at and bid on. Not office towers yet, and probably not for a while. But certainly apartment towers, academic buildings, medical and biotech facilities. And to hear our local commercial real estate pros tell it, there are more on the way – very good news for the new year. Read more in our cover story, page 16.

Before we leave 2011, we want to acknowledge some of the great work done by ASM members on projects across the state this year. See our “Year in Review” in photos on page 24. And don’t miss our two feature stories, Project of the Year – East, focusing on Genzyme’s new Biologic Support Center in Framingham, and Project of the Year – West, documenting the amazing David G. Cannistraro is executive vice president of J.C. Cannistraro LLC in Watertown, and president of ASM. He can be reached through ASM at (617) 742-3412 or by email at president@associatedsubs.com.

fast-track rebuilding of Springfield College dorms devastated by the June tornadoes. Both projects show project teamwork at its best.

No recap of 2011 would be complete without mentioning the one-year anniversary of the Massachusetts Prompt Pay law, which took effect in November 2010.

Although the law may not yet be fully tested after just a year, it appears the industry has adjusted, and we hear no complaints. Let’s hope no news is good news! Now it’s time to address the big piece missing from Prompt Pay: fair terms for payment of “retainage.” That is ASM’s legislative priority for 2012, and we look forward to working with our industry partners on a solution that is fair to all.

In 2012, we’re also looking forward to becoming one of the first “health group purchasing cooperatives” – also known as the association health plan – in the commonwealth, under legislation that coincidentally passed the same day as Prompt Pay. ASM is in the final stages of application to be a cooperative, and we look forward to receiving our approval and helping members save on the costs of health care. We’ll have more on this in our next issue.

In the meantime – please enjoy this issue, which also features an article on new directions at DCAM, under new Commissioner Carole Cornelison; an article explaining the decision striking down Fall River’s Responsible Employer Ordinance; and substantive articles on business accounting issues and insurance. As the saying goes, there is truly something for everyone – just what we strive to offer at ASM. s

The Professional Contractor is published by

The Associated Subcontractors of Massachusetts, Inc. One Washington Mall | Fifth Floor | Boston, MA 02108 tel 617-742-3412 | fax 617-742-2331 mail@associatedsubs.com | www.associatedsubs.com

Officers

President: President Elect: Vice President: Vice President: Vice President: Treasurer: Past President: Past President:

David G. Cannistraro J.C. Cannistraro, LLC Richard R. Fisher Red Wing Construction Joseph H. Bodio Lan-Tel Communications, Inc. Steven P. Kenney N.B. Kenney Co. Gregory A. Porfido Mark Richey Woodworking & Design, Inc. Russell J. Anderson Southeastern Metal Fabricators, Inc. Sara A. Stafford Stafford Construction Services, Inc. Scott H. Packard Chapman Waterproofing Co.

Directors

George A. Allen Sr. | Steven T. Amanti | Clement P. Clare | R. Lindsay Drisko | Roger A. Fuller William M. Gillespie | Wayne J. Griffin | Robert B. Hutchison | Dana E. Johnston Jr. Michael S. Kosiver | William J. (Mac) Lynch | Susan Mailman | Erik S. Maseng James B. Miller | Louis J. Sannella | Nancy H. Salter | Ann T. (Nancy) Shine | Frank J. Smith Lee C. Sullivan | Carolyn M. Francisco, Counsel | Monica Lawton, CEO

4

Winter 2011

The Warren Group Chairman CEO & Publisher President Group Publisher & Editor in Chief

Timothy M. Warren Timothy M. Warren Jr. David B. Lovins Vincent M. Valvo

Finance & Administration Dir. of Operations | Controller

Jeffrey E. Lewis

Editorial Custom Publications Editor Associate Editor

Christina P. O’Neill Cassidy Norton Murphy

Advertising Publishing Division Sales Manager Account Manager Advertising, Marketing & Events Coordinator

George Chateauneuf Mark Schultz Emily Torres

Design & Production Creative Director Senior Graphic Designer Graphic Designer

John Bottini Scott Ellison Ellie Aliabadi

©2011 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.

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BEACON HILL SPOTLIGHT

BY DEBBIE SWANSON

Meet Carole Cornelison, DCAM Commissioner In the spring of this year, Carole Cornelison was appointed commissioner of the State’s Division of Capital Management (DCAM), the agency responsible for major public vertical construction and real estate services for the commonwealth of Massachusetts.

C

ornelison embraces this role, drawing upon her lengthy history working at the executive level in the public, non-profit, and private sectors.

Her career began in Cincinnati, Ohio, where she worked in the health field, in housing and economic development, as a college teacher, and in management consulting. She joined Boston’s Department of Neighborhood Development in 2004, where she first served as deputy director of homeowner services and then as deputy director of housing development.

In 2008, Cornelison became the superintendent of the Bureau of State Office Buildings. As such, she managed a portfolio of buildings including the Massachusetts State House, the McCormack, the Hurley, the Lindemann Mental Health Center, and the Springfield and Pittsfield state office buildings.

In her role as DCAM Commissioner for the commonwealth, Cornelison will play a major part in Gov. Deval Patrick’s plans to improve the management of state facilities, support job creation, advance the use of renewable energy, and provide world class higher education institutions in Massachusetts.

ASM had the pleasure of interviewing Cornelison and hearing her thoughts on her new role and changes at DCAM.

What changes will you be making at DCAM? I’ve been charged by [Secretary Jay] Gonzalez and the governor to move forward on the consolidation of facilities management. We have over 5000 active facilities in use, managed by a variety 6

Winter 2011

of agencies. We anticipate better services and cost efficiencies by having DCAM serve as the central agency responsible for facilities management. A lot of my energy has been and will continue to be used in that direction.

How will you do this?

We’ve already begun the process by working with a few agencies to undertake the facility management function of their newly constructed buildings. I’m pleased to mention that Secretary Gonzalez and I have convened the Commonwealth Facilities Advisory Council – a group of 41 experts from around the state, the private sector and labor to draft a blueprint to guide us as we continue the effort.

We’ll also provide technical assistance to look at the management team in facilities under our responsibility. We’d like to see changes focusing on teamwork and customer service. I’ll also be taking a hard look at our own internal processes. It’s not only important that we provide the appropriate budget and management oversight, but that the services are provided in a timely fashion and are consistently delivered at a high quality in all facilities.

Any other changes in the future?

With the economic situation across the country and the commonwealth, we need to be more frugal with taxpayer resources. We have instituted a program to make business process improvements at DCAM similar to those used in corporate America to provide services in a more efficient way. If we can save processing time, especially in construction, time is money.

What are some of your goals?

I want to continue the exceptional record of vertical construction that is the DCAM reputation.

I want to go beyond that record to initiate a consolidated facilities management and maintenance approach to preserve the commonwealth’s assets.

In the forefront, I want our work to produce jobs.

It’s important to me to increase opportunity for greater small business participation.

My goals also include taking more steps toward energy efficiency. According to Executive Order 484, Lead by Example – Clean Energy and Efficient Buildings, we’re looking at all buildings to be cleaner and more energy efficient, both in new construction and existing. We want to reduce the commonwealth’s carbon footprint.

We’re doing wonderful things at our state colleges and universities around energy. At North Shore Community College, the construction is complete on our state’s first Zero Net Energy Building. This is a $34 million dollar project housing their Allied Health programs. [As Zero Net Energy], the building generates as much energy as it consumes. NSCC is expected to save up to $100,000 annually in energy costs.

As we plan, design and construct projects around the commonwealth, we see the job activity. Although the amount fluctuates constantly, in the past year we have had as many as 1,200 trade workers employed on a single day at DCAM construction sites. We plan to ensure these jobs continue as a result of our efforts, and that there is equal opportunity for access to them.

ences are sometimes the slowest part, but once references and the required documents are in place, we can turn it around quickly. [If there are problems], we’ll meet face-to-face to help a contractor improve so they can become certified.

Once a contractor is certified, there is a review process for renewal, to make sure they remain in good standing.

What technology has DCAM been using to streamline its methods?

DCAM had been using BIM prior to my arrival. The first BIM model was helpful to the design in the State House master plan, which is a complex facility. BIM has also been used in the woman’s correctional facility in Chicopee, MA. On the facilities maintenance side, we’ve used Capital Asset Management Information System (CAMIS)

for 10 years. This allows agencies across the commonwealth to enter their maintenance needs and check the status of service requests. We can use it to track deferred maintenance.

We’re currently in the process of selecting a new firm for an updated system, so we can expand this use across the state.

What is your outlook on the future?

I’m optimistic about improving our ability to manage capital assets, finding the best ways to do things, saving money, and turning [DCAM] into a first-class center of excellence.

We’re committed to high quality standards and a much improved focus on customer service. DCAM is well on the way to achieving both goals. s

Debbie Swanson is a freelance writer.

Protection starts here

Does DCAM work with subcontractors, and do you have any advice for those wishing to come on board?

We do. The important thing is to go through the DCAM certification process. To take on any larger projects, there is also an additional pre-qualification process.

In conjunction with the Supplier Diversity Office, we have a certification unit that provides half day workshops to new businesses who want to do work with us. The workshop explains the steps and documentation required in DCAM certification. It’s not required to attend, but helpful.

How long does the certification process take?

About two to four weeks. Refer

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The Professional Contractor

7

REO

BY EMANUEL N. BARDANIS, ESQ. AND KATHRYN R. LYNCH, ESQ.

Court Invalidates Fall River Responsible Employer Ordinance

M

any cities and towns have responsible employer ordinances (REOs), also known as responsible contractor ordinances. REOs establish employment-related requirements for contractors and subcontractors working on public projects within the city or town. REOs vary from city to city and town to town, and often include requirements that contractors and subcontractors maintain a bona fide state registered apprenticeship program, maintain certain health, welfare and retirement coverage and hire local residents to work on the project.

REOs have been challenged on various state and federal constitutional grounds as well as federal statutory law. Recently, the U.S. District Court of Massachusetts found that the city of Fall River’s REO violated the U.S. Constitution and the federal Employee Retirement Income Security Act (ERISA), as it contained illegal provisions regarding residency requirements; furnishing pension, hospitalization and medical benefits; and apprenticeship requirements.

Background of the Litigation The challenged provisions of the Fall River REO included requirements that 100 percent of apprentices and 50 percent of all other workers for any construction project be Fall River residents; contractors furnish pension/annuity plans and hospitalization and medical benefits for all employees on the project; and all contractors maintain and participate in an active apprentice program that is approved by Massachusetts, has been in existence for at least three years prior to the bid date, without suspension, and has graduated at least two apprentices per year.

The plaintiffs, Utility Contractors Association of New England, Inc. (UCANE), along with W. Walsh Co., Inc., and an employee of Walsh, sought a determination that certain provisions of the Fall River 2010 REO were unlawful. The REO applied to all construcEmanuel N. Bardanis is a partner and Kathryn R. Lynch is an associate at Corwin & Corwin LLP, one of the oldest law firms in New England, dedicated solely to construction law, and counsel to ASM since 1950. They can be reached at ebardanis@corwinlaw. com or klynch@corwinlaw.com, or at (617) 742-3420.

8

Winter 2011

tion projects within Fall River that were funded by the city, or by any federal grants or loans.

During the pendency of the case, Fall River voluntarily repealed the REO and argued the case was thus moot and should be dismissed. The court disagreed, partly out of concern that Fall River would simply reinstate the REO after dismissal. Fall River next challenged the plaintiffs’ ability to bring the action because neither Walsh nor UCANE’s members bid on the project at issue. The court rejected this argument also, and found that the plaintiffs had standing because the REO provisions deprived them of the ability to compete on equal footing in the bidding process, thus discouraging them from bidding.

Having thus cut through the procedural wrangling, the court invalidated the REO on three substantive grounds: Residency requirements – The Fall River REO required that 100 percent of the apprentices and 50 percent of all other workers on a project be Fall River residents. The court found that the residency requirement violated the Privileges and Immunities Clause of the U.S. Constitution1 because it discriminated against out-of-state workers by depriving them of the right to seek employment on Fall River projects. The REO also put bidders who did not employ mostly Fall River residents at a severe disadvantage, as they would be forced to spend time, effort and resources trying to recruit Fall River employees prior to bidding.

While the right to employment is protected under the Privileges and Immunities Clause, not all state and municipal laws that discriminate against out of state citizens for such protected privileges and immunities are automatically unconstitutional. To justify a discriminatory law, the state, city or town has the burden to show that it had a “substantial reason” to treat out of state citizens differently from in state citizens. The “substantial reason” must meet the very high standard of proving that out of state residents constitute a “peculiar source of the evil”2 that the proposed law will address.3 The court found that Fall River failed to offer any justification for the discriminatory treatment of out of state citizens that resulted from the Fall River residency requirement.

Mandatory health and pension provisions – the court also determined that the REO violated the provisions of ERISA. In general terms, ERISA is a federal act that establishes standards and requirements for employee benefit plans. A plan is considered an “employee benefit plan” under ERISA if its purpose is to provide benefits, among others, of medical, disability, death, unemployment, vacation, retirement income, or apprenticeship programs. ERISA preempts almost all state laws that “relate” to an ERISA employee benefit plan.4 The Fall River REO mandated that contractors and subcontractors provide employees with pension/annuity, hospitalization and medical benefits. The court found the REO violated ERISA because it required contractors to provide employee benefits that clearly fell within the scope of ERISA benefits.

Apprenticeship requirements – the court determined that ERISA also preempted Fall River REO’s apprenticeship program requirements. ERISA preempts any state law that “relates” to apprenticeship training programs. The REO clearly related to an ERISA apprenticeship program as it mandated that all contractors and subcontractors have a state-approved apprenticeship program that had been in existence for at least three years prior to bidding, from which at least two apprentices per year graduated, and that met the REO’s residency requirements for apprentices. Since the REO demanded a specific apprenticeship program5, it was invalid and preempted

by ERISA. The court noted the REO apprenticeship program continued to require the hiring of Fall River residents, and was thus unlawful on that ground as well.

The appeal period is still open; however, the court enjoined Fall River from enacting or enforcing the provisions of the 2010 REO or any similar REO during any appeal.

While each REO has its own set of requirements, this decision sheds some insight on what municipalities may or may not mandate with respect to residency, employee benefits and apprenticeship. s 1 The Privileges and Immunities Clause of the U.S. Constitution protects

against discriminatory treatment of out of state citizens for certain protected privileges and immunities such as the right to possess property, travel, pursue a livelihood, and receive protection from the state government.

2 United Building and Construction Trades Council of Camden County and Vicinity v. Mayor and Council of the City of Camden, 465 U.S. 208, 218 (1984).

3 The Privileges and Immunities Clause test comes from the Supreme Court case, Toomer v. Witsell, 334 U.S. 385, 398 (1948).

4 Some state laws that deal with state insurance, banking or security laws, applicable criminal laws, and domestic relation orders are not preempted

by ERISA. 5 In support of its apprenticeship requirement, Fall River tried to rely on another case involving a California state law which allowed contractors to pay lower wages to participants of a state-approved apprenticeship program. California Div. of Labor Standards Enforcement v. Dillingham Construction, 519 U.S. 316 (1997). Unlike the Fall River REO, the California law in Dillingham did not relate to an ERISA apprenticeship program because it did not require contractors to hire workers from approved apprenticeship programs.

The Professional Contractor

9

INSURANCE

BY BERNARD K. QUINLAN, CPCU, CIC, CRM

Purchasing Contractors’ Pollution Liability Coverage

U

nderwriters of commercial general liability (CGL) and umbrella liability insurance for contractors have limited or totally eliminated insurance coverage for bodily injury or property damage arising from the “discharge, dispersal, seepage, migration, release or escape of pollutants.”

Additionally, these policies do not provide coverage for costs associated with Bernie Quinlan is a principal with Sullivan Group in Needham, Mass. He can be reached at (781) 514-1331 or bquinlan@sullivangroup.com.

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Treat-Proof ® is the most economical solution you can use on wet sub-floors because it is only applied once and lasts for the life of the concrete. It is safe, cost effective, easy to apply and completely non-toxic, making it perfect for projects requiring a fast track system that allows permanent results and early site access with minimal site disruption. All Pavilion project managers and installers are fully certified in the use of Treat-Proof ® and ready to help solve your moisture problems.

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4611

10 pavflrs_pc_thirdpg_11-14.indd Winter 2011

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11/14/11 10:47:39 AM

requests or demands by a governmental agency to “test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of pollutants.” “Pollutants” are defined as “any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste.” To eliminate any gray areas that might be interpreted in favor of the insured contractor, exclusions for fungi or bacteria, silica, and asbestos are typically endorsed to your policy!

The contractor has several options to address the significant financial loss exposure presented by these policy exclusions/limitations: • Convince your underwriter to amend the CGL and umbrella policies to provide pollution coverage.

Highly unlikely.

• Retain the risk (self-insure). This is probably not a good option for most contractors.

• Contractually transfer the risk to the owner or GC. Good luck!

• Transfer the risk to an insurance company through the purchase of contractors pollution liability (CPL) insurance.

The contractor who carries pollution liability insurance enjoys the following benefits: • Broad insurance coverage and limits distinguish a contractor from competitors. Having a CPL policy may help you secure work.

• Some projects require CPL coverage as a prerequisite to bid. You may find that purchasing projectspecific insurance (which is available) is as expensive, or almost as

expensive, as having an annual policy that covers all your projects.

• Surety underwriters may consider a contractor with broad insurance coverage to be a better financial risk.

• Peace of mind that a significant financial exposure is addressed.

claim is presented, not the date that the pollution incident occurred.

CPL is a non-standard coverage. That is, each insurer may offer significantly different coverage terms and conditions. CPL policies usually include coverage for legal liability for bodily injury, property damage, and clean-up costs at jobsites, and emergency response costs.

Coverage for the following exposures may be optional, either included, excluded or available by endorsement: • Microbial matter (mold and fungi) • Waste disposal liability for transportation and at waste disposal sites • Legal liability for bodily injury, property damage and clean-up costs at the contractor’s premises • Operations performed by subcontractors on behalf of the insured • Completed operations

Some of the well-known underwriters of CPL Insurance are AIG/Chartis, ACE, Arch, Chubb, CNA, Evanston, Liberty Mutual, Philadelphia, XL and Zurich. Coverage is available on either “occurrence” or “claims-made” basis.

“Occurrence” coverage is typically preferred, and most commercial general liability policies are issued on this basis.

Coverage applies based on the date of the occurrence. Coverage for a “claimsmade” policy applies to the date the

• Coverage for additional insureds, such as owners and general contractors • Underground storage tanks • Professional liability • Terrorism Contractors who purchase CPL insurance transfer a substantial financial risk and may achieve a competitive advantage. However, due to the non-standard nature of coverage, and the wide variation in coverage terms and conditions available, they should choose a policy carefully. Work with a competent insurance professional and evaluate several alternatives before selecting an underwriter. As with every product or service you utilize, the least expensive CPL policy is not necessarily the best. s

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The Professional Contractor

11

BIDDING BY SALVATORE P. FALZONE JR.

Understanding the Variables of Successful Bidding Part Two: Determining Your True Break-Even Point

A

s discussed in the first part of this series (The Professional Contractor, September 2011), successful bidding comes down to a clear understanding of a few important elements – costs (both fixed and variable), overhead and a company’s true break-even point.

We began by examining the concept of “mixed costs” and their role in producing more accurate bids. Now let’s delve into the importance of accurately determining break-even, setting a realistic gross profit margin, and then factoring these numbers into bids that will win future business.

It’s interesting to see that even though the construction industry is in the midst of a prolonged downturn, some contractors seem to be holding their own, and a few are even prospering. Cynical observers might say that it is merely a race to the bottom – that those chasing low-margin jobs will eventually be out of business. Yet we see companies that do the work at lower margins and are doing fairly well.

One factor could be that the struggling businesses don’t really know their break-even point (BEP). Nor have they done the analysis to determine what their true fixed, variable and mixed costs are. (Perhaps after reading my earlier article, such cost analysis has been done).

Owners already know intuitively that if they are not making a profit, they must either (a) get more business, (b) make more money on the jobs they already have, or (c), do a combination of both. Yet too many of them fail to challenge the underlying math they used to formulate the bids that ultimately proved unsuccessful.

So what options does the owner have?

• Keep doing the same and hope for the best (not recommended in this economy) Sal Falzone is a partner in the Boston area accounting and business advisory firm Rucci, Bardaro & Barrett PC, whose Construction Business Services Group offers business, financial and strategic planning advice to companies in transition. He can be reached at (781) 321-6065 or salf@rb-b.com.

12

Winter 2011

• Fold up the tent and retire, or do something else • Hire a better sales team • Merge with a competitor • Expand into a new or related market • Focus on a niche that promises better margins • Understand and apply the principles of achieving break-even, if only to make a more informed decision about the other options To understand a company’s true BEP, we must first understand what its real “fixed overhead” is.

Once that has been established, we need a plan that will provide the company with enough “contribution to overhead” to cover the fixed overhead nut.

Below is a table that illustrates a business that has already segregated its mixed costs and eliminated what management found to be non-essential overhead. If you missed the earlier article on mixed costs, it is important to know that breakeven analysis requires that you are clear about the concepts of variable costs and fixed overhead to the point where you can segregate any mixed costs into the two components. The first column and its related percentages represent such adjusted profit and loss.

Once all mixed costs are appropriately apportioned, the formula is very simple: Fixed overhead divided by contribution to overhead. Here, we have $400,000 of total fixed overhead. With a contribution to overhead of 35 percent, break-even sales becomes $1,142,857, which is calculated by dividing the $400,000 of overhead by the 35 percent contribution to overhead.

Ah, but if it were only that simple to put into practice. In reality, it may be very difficult today to obtain enough additional work at a 35 percent contribution margin to increase volume by 43 percent ($342,857 divided by $800,000). If you cannot reduce your overhead to achieve break-even, you may have to reduce your pricing to get the extra work.

Break-Even Point (BEP)

Adjusted Sales

BEP with reduced overhead

$800,000

100%

$1,142,857

100%

$971,429

100%

Cost of materials

160,000

20%

228,571

20.0%

194,286

20.0%

Direct labor

360,000

45%

514,286

45.0%

437,143

45.0%

520,000

65%

742,857

65.0%

631,429

65.0%

280,000

35%

400,000

35.0%

340,000

35.0%

Indirect labor

200,000

25%

200,000

17.5%

170,000

17.5%

Other overhead

200,000

25%

200,000

17.5%

170,000

17.5%

Total Overhead Profit (Loss)

400,000

50%

400,000

35%

340,000

35.0%

($120,000)

-15%

$0

0.0%

$0

0.0%

Variable Costs

Contribution to Overhead Fixed Overhead

To keep things simple in the illustration above, let’s assume that the $800,000 is already signed on, and represents your company’s backlog of work.

If you were to reduce your pricing by 10 percent on only the new bids, you would divide the $120,000 of remaining overhead (the “loss” not covered by the $800,000 backlog) by the contribution to overhead to be realized on such additional new work. Be aware that when dropping pricing by 10 percent to win the additional work, the variable cost percentage increases: what was a 35 percent contribution would become a 27.8 percent contribution with a 10 percent cut in fees. So your break-even volume would have to be $1,231,655 (a scenario not illustrated in the table).

[If you do not follow this increase in variable cost percentage, try this. Simply calculate what it would be on the inhouse $800,000 if you dropped pricing by 10 percent to $720,000. You would have the same $520,000 in variable costs, but yield only $200,000 in contribution to overhead which, when divided by

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The Professional Contractor

13

MARKETING AND PR

BY TOM PALANGE

3 Secrets Most Social Media Marketers Won’t Tell You

I

n the last issue of this publication, a strong case was made in support of contractors entering the brave new world of social media. There are staggering statistics that show the popularity of platforms such as Facebook, Twitter and Linked In, and there is no question that many of the major players in the business world are getting in on the fun. The fact remains however, that social media is still relatively new and unfamiliar, and the construction industry is not exactly known for being an early adopter. As you decide whether or not your firm is ready and willing to embrace social media, consider the following suggestions that are often overlooked:

Social Networking is Not Limited to Web-Based Interaction It is no secret that general contractors and construction managers do not assemble project teams based upon a subcontractor’s total number of Facebook friends. The true value of social media in construction, or in any other industry for that matter, is the added ways in which bonds can be formed between a firm and its clients. When it comes to making a first impression, however, social media tools still cannot compete with a handshake and eye contact.

Construction is largely a service industry that relies on human interaction. A client is more likely to remember your face and a story you shared with them at a networking breakfast, than a one-time mention of their Twitter handle. Successful social media marketers supplement their networking skills with carefully planned social networking skills. LinkedIn, for example, is becoming an increasingly popular communications tool for following up on new contacts. Some professionals are going as far as referencing a LinkedIn profile on their business cards to encourage future online communications.

As wireless technology and cloud computing reshape the way companies do business, it becomes increasingly important to find balance between our methods of communication.

Tom Palange manages all marketing and public relations functions for J.C. Cannistraro, LLC, including the firm’s dynamic social media initiatives. He can be reached via email at tpalange@ cannistraro.com.

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Manage Your Expectations Creating a corporate Facebook page or Twitter feed for the sake of being trendy rarely yields results. Successful use of social media tools requires substantial time and effort. Some companies, mostly large corporations, are hiring full-time social media coordinators to augment their marketing and public relations departments. In the wake of the recessionary marketplace, however, most construction professionals have already taken on added responsibilities and have minimal time for tweeting.

It is important to set reasonable expectations for the success of your campaigns before jumping into the social network. When implemented properly, social media tools can foster relationships, add online presence and build brand awareness. In order to succeed, managers must set goals for their social media initiatives, think about which employees are best suited for social media responsibilities, and be willing to give them the time to succeed.

Content Always Matters Social media success is not instantaneous. It takes time to build a network because your network needs to know it can trust you to provide value. Unlike traditional mass media, social media users are not captive audiences. Twitter followers, Facebook friends and LinkedIn connections can opt in or opt out of a relationship with ease, and will do so if they find a company’s content to be inaccurate, boring or otherwise unimportant.

Aside from total number of connections or followers, it is easy to identify a true social media maven. Power users make the most of their 140 Twitter characters by engaging their followers with statistics, anecdotes and links to interesting articles. Retweeting the content of others also goes a long way in validating a user’s place in the Twitterverse. Successful LinkedIn users join groups that are pertinent to their business or industry and get immersed in conversations. Companies with popular Facebook pages offer exclusive content or incentives that drive users to “like” their brand.

There is a human aspect of social media to consider when developing content for Twitter, Facebook and LinkedIn. Behind every brand is a group of people that are reading, sharing and reacting to social media content. Chances are that if your content interests you, it probably interests those in your social and business circles. s

Understanding the Variables of Successful Bidding continued from 13

$720,000 is 27.8 percent, rather than the 35 percent contribution you would derive from the $800,000 in sales secured at normal pricing.]

You’ll notice that the new break-even volume of $1,231,655 is even more than the $1,142,857. Now, instead of a 43 percent increase in volume, this example calls for a 54 percent increase. At least with a 10 percent cut in fees, you can reasonably expect to get a lot more work and hopefully achieve profitability. For any work you get over and above the $1,231,655 BEP, 27.8 percent of it is pure profit. The real key is to operate above your true BEP. For those who aren’t sure what that is, achieving profitability is an ever-elusive goal, especially in difficult times.

While the old adage “we’ll make up for it in volume” is often used as a punch line, the underlying business calculations are quite sound. The trick is to know your true BEP, and to ensure that your contribution to overhead is significant enough to haul in the additional work without totally disrupting your business model and cost structure.

This is also a good time to address an item that may be buried in company overhead – discretionary expenses. If you SullGroupTPC 1/29/09 3:49 PM Page 1 are accruing “overhead” of, say, $20,000 in personal benefits

Insurance Relationships:

or extras (note, this is not referring to your ASM or other business association memberships!) and you have a 20 percent contribution to overhead rate, it means that your BEP is $100,000 more than it should be. The same holds true for someone you treat as overhead who is overpaid (as difficult as that might be to accept).

This doesn’t mean that you cannot continue to carry such discretionary expenses. But to the extent that they exceed your competitors, you need to be careful not to lose bids because you are trying to cover overhead that may be excessive in the new world order.

Remember, as stated above, you are looking for your “true” and “real” overhead costs. As shown in the table’s last column, if you were to eliminate $30,000 from each of your two fixed overhead line items, it’s amazing to see how significantly your BEP drops.

Every business has its own unique circumstances, sensitivities and margins. I have used hypothetical margins here for illustration. While I expect your breakdown to be different, the concepts will not change.

Many of you have multiple divisions or cost centers, which means that you are juggling more than one set of numbers.

But the analysis is the same. You do not have to possess all the answers internally, but you do need to come to grips with these relatively simple concepts, even if it means shaking up your controller or getting outside support. s

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The Professional Contractor

15

Recovery is Slow, but Some Sectors are

BOOMING AGAIN

BY JAY FITZGERALD

The Massachusetts economy and construction industry appear to have emerged from this summer’s stockmarket volatility shaken by, but not deterred from, the slow recovery that’s been underway for over a year.

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A number of major area construction projects broke ground this the fall, seemingly defying the conventional wisdom that a double-dip recession was all but inevitable in the wake of the summer stockmarket shocks.

Developers say they’re plowing ahead with other plans for construction projects, from new apartment complexes within the Route 128 area to new life-sciences laboratories in Cambridge.

“You’ve still got pockets of [construction] activity

going on around the state,” said Rob Griffin, the New England president of Cushman & Wakefield, the large commercial real estate company. “It’s not a booming environment. We still don’t have a clear view of where the economy is going, here in the Boston area or elsewhere. But we’re lucky to have some activity.”

Commercial real estate and construction officials say there’s no doubt the summer market gyrations – caused mainly by fears of a weakening U.S. economy and Europe’s debt problems – damaged confidence and injected a note of caution within industry circles.

“It made everyone step back and say, ‘Wait a minute. What’s going on here?’” said Michael Roberts, vice president of development at AvalonBay Communities, the Virginia-based apartment building developer with strong ties to Massachusetts. “Everyone gets nervous about these types of things.”

Some economists were so nervous about the summer’s market volatility – which at some points resembled the bleakest days following the collapse of Lehman Brothers in 2008 – that they predicted a double-dip recession was all but a certainty.

But something unexpected happened: Markets calmed down, and economic data later confirmed that the U.S. economy still managed to grow by 2.5 percent in the third quarter.

The national jobs picture is still bleak: the unemployment rate remained stuck in the 9.1 percent range through the early fall.

Yet the third-quarter GDP data suggested that the U.S. economy hadn’t derailed. Impressive stock market gains in October seemed to confirm a growing notion that another recession wasn’t necessarily in the offing.

In Massachusetts, the news has been even more encouraging, though no one is comparing today’s fragile economy to the boom times of the 1980s, 1990s and last decade.

The state economy grew by a surprising 3.9 percent in the third quarter ending Sept. 30, according University of Massachusetts data. The state’s jobless rate stood at 7.3 percent in September, well below the national average, according to the Mass.

Dept. of Labor and Workforce Development.

As a result, industry officials say there are a number of encouraging areas of opportunity for the construction industry in Massachusetts – apartment buildings, life-science laboratories, college facilities, and health-care complexes.

But there is little sign of a recovery in office, retail and industrial construction, as slow jobs growth keeps demand for office and other buildings down.

The Professional Contractor

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There’s also not nearly as much building activity in areas outside the immediate Boston area, raising concerns about an uneven regional recovery.

Here’s a look at some of the different construction sectors in Massachusetts:

Multi-Family Residences By far, the apartment-building sub-sector is the healthiest construction field in Massachusetts. It’s not just healthy – it’s hot.

At least a dozen major apartmentbuilding projects are now under way or close to development in the Boston area alone, from the 286-unit Victor complex in the North Station area to the 184-unit Maxwell’s Green in Somerville.

AvalonBay broke ground last month on a new $100-million, 28-story apartment complex on Exeter Street in Boston. The Avalon Exeter, which is expected to create about 300 construction jobs, will have 187 apartment units.

The Avalon Exeter project came on the heels of last year’s completion of a 382-unit apartment development 18

Winter 2011

by AvalonBay in Northborough – and now AvalonBay is eyeing yet another 404-unit apartment project on Stuart Street, near the Prudential Building in Boston.“The apartment recovery really began about a year ago,” said AvalonBay’s Roberts. “The demand is there.” He noted the market for apartment developments is helped by low interests rates and stabilized commodity prices, at least for right now.

Jim Kelleher, chief investment officer at the New Boston Fund, a real estate investment firm, said the multi-family building market is quite strong, while other sectors remain a “completely different picture.”

New Boston Fund is a partner in a plan to develop a new 345-unit housing project on Parcel 24, at the corner of Hudson and Kneeland streets, in the Chinatown area of Boston. The ground breaking for the $130 million project is set for next year.

Life Sciences The life-sciences sector – which includes biotech, pharmaceutical and medical-device companies – has also withstood the economic downturn

rather well.

The most high-profile life-science construction project is the new Vertex Pharmaceuticals headquarters building, now under way on Boston’s Fan Pier in the Seaport District.

Harvard University, meanwhile, has signaled its desire to soon resume work on it mammoth Life Science Center in Allston, after mothballing the project soon after the Wall Street meltdown in 2008.

There are a handful of other lifescience construction projects under way in Cambridge, for institutions ranging from Biogen Idec to the nonprofit Broad Institute.

The biggest surprise: an actual speculative project under construction by Skanska Development, a unit of the giant Skanska Construction.

The 120,000-square-foot lab building at 150 Second Street, in the Kendall Square area, doesn’t have tenants yet. But Peter Bekarian, senior vice president at Jones Lang Lasalle, said he’s optimistic occupants will be found. JLL is the marketing agent for the new facility.

“It’s a fundamentally sound move,” Bekarian said of starting construction on a speculative building at this point. “The Boston economy is improving a little, and the life-sciences [sector] in Cambridge is definitely strong.” Skanska has already starting clearing the site for the new lab facility, tearing down older buildings and getting other prep work done.

Construction within the life-sciences sector is a big boost for the economy, but it isn’t necessarily wideranging enough to spur growth elsewhere in the state.

“If you go beyond Cambridge, it’s not very encouraging,” said Catherine “Cappy” Daume, managing director of Boston’s Davis Cos., a real estate investment, development and management firm.

Office and Other Sectors The office construction market isn’t a complete disaster. After all,

Liberty Mutual is plowing ahead with its plan to construct a new $300 million office building, along with 600 new jobs, in Boston. Developers have also recently started site work for a massive, decade-long expansion of the North Park office campus in Burlington. And the Seaport District of South Boston seems to be growing at a fast clip, industry experts note.

But outside of those projects, it’s not an attractive environment for office – as well as industrial and retail – construction in Massachusetts. The problem: The demand for space is simply not there yet.

Demand for high-profile “trophy” Class A buildings in Boston, inside Route 128 and near key I-495 areas is solid. But demand for Class B space is simply not strong. Ominously, Boston’s Financial District, the very heart of the region’s financial industry, is still seeing double-digit vacancy levels.

If building owners can’t even fill existing office space, then there’s no way someone is going to step up to build a new office complex, unless it’s a special build-to-suit project for a large, highcredit-worthy tenant, officials say.

“It’s going to take a while for any new [major] office construction,” said Vincent Cerbone, senior vice president of construction at Equity Office in Boston. “Owners are very cautious right now. It could take three years or more for a recovery.”

Still, Cerbone said there are a few encouraging signs of activity within the office market, as architectural and engineering firms gear up for major renovations of existing buildings. “Right now I see all sorts of renovation work being teed up, but not new construction,” he said.

Another sign of hope: Area universities and hospitals have a number of construction project under way. Non-profit institutions tend to take advantage of economic slow times to start projects, when commodity prices and interest rates are usually lower, said Cerbone.

“They can negotiate great deals in soft markets,” he said. The bottom line for the entire commercial construction

market is that recovery is now in progress – but it’s slow and spotty in nature.

The city of Boston’s construction environment is generally strong, considering where it stood in late 2008 and 2009. “It’s clear that the private sector has confidence in Boston because there are more than 30 development projects

underway,” said Boston Redevelopment Authority director Peter Meade, referring to both profit and nonprofit institutions’ construction projects.

But it’s a different story in other parts of Massachusetts, where the recovery remains painfully slow or elusive, industry observers say. s

Jay Fitzgerald is a freelance writer.

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The Professional Contractor

19

PROJECT OF THE YEAR – EAST

BY KRISTIN CANTU

Genzyme

E

fficiency is key and Genzyme, the Cambridgebased global biotechnology outfit, knows this better than most. With 10,000 employees worldwide and revenues topping $4 billion last year, Genzyme is nothing if not strategic about how its business is run. That’s why in the fall of 2009 it began construction on a 183,000-square-foot, $90-million biologic support center (BSC) in Framingham, which would bring a large number of its staff into one central location, allowing them to work more efficiently.

“We have a few production facilities in Framingham,” said Stanley Rotkiewicz Jr., Genzyme’s principal project manager. “We took all of the various laboratories and all support groups and brought them into one building. Having all the groups scattered in different buildings in different geographic areas wasn’t efficient.”

The Framingham building, which was completed in July, brought 11 departments into one central location. While it’s hard to quantify how much efficiency has improved since building occupation in August, Rotkiewicz believes common sense dictates that putting everyone in one building, cutting Kristin Cantu is a freelance writer.

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Winter 2011

down significantly on walking and driving time, has already paid off for Genzyme and its employees, many of whom were coming from warehouse office spaces without adequate conference rooms, cafeterias or even windows.

Rotkiewicz worked directly with the contractor for the Framingham building, Gilbane Building Company, a Rhode Island-based company whose main office is in Boston. It was his first time working with the company, and Rotkiewicz said he “has no regrets. They were competitively bid, interviewed and awarded the project.”

One big reason Rotkiewicz is happy with the decision to hire Gilbane is because the project finished on time and under budget – a rarity. He is particularly proud not only that it was done on schedule and under budget, but also that “the design was done to everybody’s satisfaction,” with little compromise. “We had some very good teams on the project and most of the subs were incredibly supportive and provided truly good quality work, and a good work environment. The whole collaboration was phenomenally well done.”

Part of bringing it all in under budget was the ability to “estimate and identify gaps in the project and make allocations for undefined work,” said Shawn Shelley, Gilbane’s project executive. Budget approval went in with anticipated design issues, and as a result changes were minimal.

The use of a 3D building information modeling (BIM) system was also key. “Normally on a job you get into situations, but the nice thing about the BIM [system] is it shows architects’ intent and defining details of how to get there,” Shelley said. “When we actually built it, there was little to no rework. Everything fit like a dime, [just] like it was in the model.”

All the subcontractors participated in the BIM system before going out into the field, Rotkiewicz said. The 3D modeling system allowed them to do more work in their warehouses than on site, helping increase efficiency.

The employees now housed in the BSC are pleased with the building’s outcome as well. “Everybody in the building is very satisfied with the layout and its use,” Rotkiewicz said. It is an L-shaped building with one side (six stories) serving as office space and housing the cafeteria. The other side of the L is four stories of laboratories.

While this building is a success story for every-

one involved, the road leading there had certain challenges, including occasionally falling behind schedule. “There were a couple of contractors that slowed down their work and hence made other contractors have extra pains on picking up the pace,” Rotkiewicz said.

But Gilbane dealt with those issues, brought subs in and had weekly meetings, forcing them to bring more people on site to manage the project and deliver. “I think [Gilbane] escalated to the highest level they could,” Rotkiewicz said.

Boston-based J.C. Cannistraro managed the HVAC system for Genzyme’s new building. Dan Foley, Cannistraro project manager, said one of the most impressive parts about what they did was using chilled beams, which are becoming more popular in the engineering world.

The installation of this quieter system was also helped by the BIM system. “We were able to coordinate and incorporate changes as we went,” Foley said, allowing for “less field time and more real time.”

J.C. Cannistraro also used 100 percent outside air with a custom air handling unit with a heat wheel on this project. The heat wheels for the air handler systems in laboratories are used for heat recovery and the condensate from the air handlers are used for irrigation.

Hudson’s Longden Company furnished and installed the raised access floors for the building’s data center, using recycled content, regional and low-emitting materials, said John Longden, president. The raised access floors were installed to allow for a hot aisle/ cold aisle configuration of server racks, he said.

Longden Company’s use of green materials is just one of the many factors contributing to the project’s environmentally-friendly focus. Rotkiewicz has submitted the building for a LEED Gold certification, which he believes it will achieve.

ENE Systems of Canton took charge of the automatic temperature control and the building management system control. It connects all the heating, ventilating and air conditioning equipment from the mechanical rooms to the individual offices, which have motion sen

sors to maximize energy efficiency.

One of the trickiest project components may have been the electrical installation. The new building’s infrastructure had to be constructed so it didn’t HIG.ProContractor 1/31/07building, 4:48 PM interrupt one in an adjacent said Tommy Lee, project manager with

Holliston-based Wayne J. Griffin Electric. “We had to coordinate many shut downs to tie in the new facility and work around Genzyme’s manufacturing process,” he said.

Page 1 it was “ a pretty technical, difWhile continued on page 30

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PROJECT OF THE YEAR – WEST

BY JACKIE RAFFERTY

Springfield College

“

A

picture is worth a thousand words.” That would have been the thought of any bystander who happened by the campus of Springfield College on June 1, 2011. It was on that date that a rogue and devastating tornado touched down in western Massachusetts, battering homes, businesses and delivering a particularly damaging blow to the picturesque campus of Springfield College. Situated on the shores of Lake Massasoit, the campus consists of a state-of-the-art wellness and recreation complex, campus union, academic and administrative facilities as well as 10 residence halls.

Three residence halls, in particular, were severely damaged. But in traditional campus style, within hours of the tornado’s devastation, the college’s administration, alumni, faculty and students banded together to begin planning the arduous tasks ahead.

Due to the extent of the damage, the complexities of the project and the extremely tight deadline, Erland Construction was a natural choice for the Jackie Rafferty is the public relations and marketing communications manager for the Associated Subcontractors of Massachusetts. She can be reached at 617-742-3412 or by email at jrafferty@associatedsubs.com.

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owner. Erland’s long-standing relationship with the college set the stage for a collaboration built on trust. The Springfield College project not only earned the respect of those key players involved with the project, it has also earned distinction as the Associated Subcontractors of Massachusetts’ Project of the Year – West.

“The devastation at Springfield College was astounding and we were happy to help however we could to get the school up and running for the 2011-2012 school year,” said Tom Blesso, senior vice president and key account manager for Erland Construction. “I’m happy we’ve established the kind of relationship with Springfield College that they chose us when they needed help.”

“Erland has a plethora of trustworthy subcontractors that we were able to call upon at a moment’s notice,” said Blesso. “It was remarkable to see how the subcontractors came together, each bringing their highly-specialized talents and experience to the table.”

Roger Fuller of R&R Window Contractors was one of the first subcontractors to arrive on site.

“Springfield College was the first site I had ever inspected with tornado damage,” said Roger Fuller of R&R Window. “Solid and heavy doors solid were pulled inward, ripped right off their hinges and leaving splintered door frames where they once used to hang. Beds were extracted out of dorm windows, with many finding their final resting place on lawns and in ponds. Wooden decks were lifted and moved 15-20 feet from their origin. It was truly a sight I will remember for years to come.”

Admittedly, this was unfamiliar territory for Roger Fuller and the R&R Window team. Nonetheless R&R Window jumped in with both feet without once questioning budgets, contracts or timelines.

Many more subcontractors would soon follow suit – relying more on trust than contracts.

The most challenging component of the Springfield College project was the expedited timeline.

The most damaged residence hall on campus was also the largest. Compounding the stress, college administrators also feared that if the residence hall was not habitable and open for the student’s return for the fall term, enrollment would suffer.

With such extraordinary damage and so little time it was hard to imagine delivering the project ontime and on-budget, but that is exactly what Erland

Construction and the teams of subcontractors were able to accomplish.

It was the impressive teamwork on the project that proved the key to success – with everyone from the project owner to the GC to the subcontractors, all coming together for the common good of the project. Erland put together a project team based on trust and relationships, above all else, and did so with speed and precision. For instance, R&R Window had already assessed the site, taken measurements for windows and panels and had shop drawings compiled before they had even “bid” on the project or had a binding contract.

The R&R Window team rallied their work force, manufacturers and vendors and delivered a finished project in eight weeks, less than half of the time allotted under normal circumstances. This was a shining example and true testament to the team work, dedication and resolution of entire project team.

Harry Grodsky & Co., Inc. was the subcontractor of choice for the HVAC repairs and installation. “There was very little time for traditional planning,” said Dave Streeter, vice president of Harry Grodsky & Co., Inc. “Once the building surveys were completed, we immediately shifted into construction mode, driven by a very tight deadline that had to be met before students could occupy the residence building. It was paramount to the project’s success to find quality contractors and in the heart of the construction season. We overcame these obstacles through great relationships,” said Streeter.

Encountering challenges on this project was par for the course. Getting buy-in from Erland Construction and the subcontractors was only part of the process. Forging relationships and getting buy-in from manufacturers (from sheet metal to windows) was another daunting yet inevitable necessity of the project. Pre-construction negotiations and delivery schedules that normally took months suddenly had to meet nearly impossible deadlines.

Maintaining integrity and quality of materials was another challenge faced by subcontractors. If the manufactures could even meet the strenuous deadlines given to them, would quality then become a casualty?

To circumvent potential breeches in quality while maintaining a strict schedule, subcontractors had to reach deep into their resources and call upon the best manufacturers in the business. And there were more than a few logistical and mechanical challenges that had to be met. R&R Window called upon Alcoa to manufacture the windows. The windows were manufactured, shipped and arrived onsite by July 11 – just five short weeks from the date of the tornado.

Harry Grodsky & Co., Inc. also relied upon trusted partnerships with manufacturers and suppliers. Buckley Associates, Tunstall Corporation and Trane were a major driving force in advancing the scheduled and maintaining quality. “With just one phone call, fans, a radiation panel and a compressor for a 1970s condensing unit were all delivered within one week,”

said David Streeter. “This was a most impressive effort from all of the suppliers.”

Additionally, Collins Electric Co., Inc. of Springfield performed all of the wiring and electrical work for the project.

The speed, accuracy and precision that it took to complete this project speak volumes to the integrity and commitment of the construction industry in Massachusetts. Their collaborative efforts made Springfield College an easy choice for Project of the Year – West. s The Professional Contractor

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PHOTO GALLERY Member Projects 2011 Every year, ASM members work on thousands of projects, both public and private, all across the region. Pictured are just a few of the projects proudly completed by ASM members in 2011.

Chapman Waterproofing Company (Boston) 1 2 3 4 Arlington Community Safety Building and Cusack Terrace (Phase I), in Arlington, Mass., are multi-story masonry buildings with an open-air terrace area, constructed in 1981 and suffering from leakage problems since they were constructed. Chapman’s work included the installation of a waterproofing system with a liquid waterproofing membrane for use in protected and exposed areas.

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DeAngelis Iron Work, Inc. (South Easton) 5 6 7 Harvard Memorial Church Full-height, double-swing gates were forged and faux finished to painstakingly mimic the existing 100-year-old iron work in the coinciding side panels.

8 9 Titus Sparrow Park Over 450 linear feet of custom iron fencing was constructed, including custom finials, quatrefoils and flowers – all custom cast utilizing new pattern work.

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Frontline Inc. (Hopedale) 1

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Genzyme, Framingham – Confined space work in manhole Russian Wharf, Boston – High-rise window washing UMass Hospital, Worcester – Demolition work St. Aidens Church, Boston – Duct cleaning

Griffin Electric (Holliston) Rhode Island Division of Motor Vehicles The 78,000 square foot renovated building features many earth-friendly attributes, high-efficiency systems and recycled materials. Griffin Electric was responsible for installing new power distribution within the building including security and fire notification systems.

6 The Elliot at River’s Edge, a six-story ambulatory care center covering over 258,000 square feet and situated on 17 acres in Manchester, NH. Griffin Electric’s work included the electrical installation for the hospital and parking structures, including power and lighting.

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John W. Egan Company, Inc. (Newton) 7 8 Recoating LNG tanks – Distrigas of Massachusetts, Everett 9 10 Power Plant Stacks, Logan Airport, East Boston

The Professional Contractor

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PHOTO GALLERY – MEMBER PROJECTS 2011 Marr Companies (Boston) 1

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Boston’s Spaulding Rehabilitation Hospital relied on Marr to erect 3,000 tons of steel, utilizing two tower cranes, while supplying the suspended and swing staging for exterior renovations.

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Fenway Park, Boston Marr setting one of two main box columns – weighing 13 tons – that make up the steel frame for Fenway’s new scoreboard.

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Boston Lobsters World Team Tennis, Ferncroft Country Club The installation of temporary bleacher seating for the 2011 World Team Tennis Tournament.

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Pavilion Floors, Inc. (Woburn) 6

Saint Cecilia Parish, Boston, MA Features over 10,000 square feet of refinished vertical grain southern yellow pine floors in the church and rectory.

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A Publication of the Associated Subcontractors of Massachusetts, Inc. Reach general contractors, subcontractors, builders, developers, building owners, designers, engineers, suppliers, and other major players in the commercial, industrial, and residential areas.

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Sanford Contracting (Billerica) 1

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Whittier Street Health Center consisted of 20,000 square feet of panelized exterior walls with terracotta tile veneer (shop applied). The building was shop fabricated, shipped and installed in less than eight months.

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SVA, Inc. (Framingham) 4

Evergreen Solar, Devens 42-foot sound barrier walls erected to solve noise problems.

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MEMBER NEWS McCusker-Gill Inc. (Hingham) is pleased to announce that Kevin R. Gill, president of McCusker-Gill, was recently elected to serve as vice president for the Sheet Metal and Air Conditioning Contractors National Association (SMACNA). Kevin has been very active in the local Sheet Metal Association (Boston) and serves as a director of the Building Trades Employers’ Association (BTEA). He will become president of SMACNA in 2014.

Julian Crane and Equipment Corp. (Watertown) is proud to announce its sponsorship of the Coastal Stars Youth Hockey team for the fourth consecutive year.

Gregory Julian, vice president of Julian Crane, will serve as coach for his third year.

Gregory led the team to a division championship in 2010 and looks forward to another successful year.

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Wayne J. Griffin Electric, Inc. (Holliston) is pleased to announce it raised over $25,000 for Special Olympics Massachusetts, by donating to the organization an Orange County Chopper the company had recently been awarded from Graybar.

Special Olympics hosted a raffle of the motorcycle for Griffin employees, who raised over $25,000 to support the organization’s sporting activities for individuals with intellectual disabilities.

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Pavilion Floors (Woburn) is pleased to announce its recent expansion into the Worcester area market, with Mark Eldridge as account executive of the new office. “Worcester has been very successful in redefining its identity and reforging its urban façade into a dynamically growing region,” said Jamie Gilmore, president. “Pavilion realized the need that existed for its full range of contract flooring services and products. We look forward to providing the same legendary service enjoyed by Pavilion’s Boston and Providence clients.”

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General Safety Services (Dedham) recently launched its newest product line, HotEdge Roof Ice Melt, designed to prevent icicles and ice dams from forming on the edge of most roof structures. A low-cost, energy-efficient, aesthetically appealing alternative to zig-zag heat tape, it is the newest innovation to be launched

by General Safety Services. “After one of the worst New England winters in years, we wanted to take a proactive approach for the 2011-2012 season,” said Nardine Bellew, president and CEO. “As a WBE/SOMWBA certified company we take safety very seriously. You could almost say it is our middle name.”

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Sanford Contracting (North Billerica) is pleased to celebrate 100 years of business. The Sanford family has been involved with commercial construction since 1911 and a member of ASM since 1957. Fast forward 100 years, Sanford has become one of the most respected subcontractors in the northeast. Sanford has built a reputation for responsiveness, reliability and excellence as demonstrated through its impressive project portfolio including the Dana Farber Center for Cancer Care, Foxwoods Hotel and Casino and Boston Medical Center – Shapiro Care Center.

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Associated Subcontractors of Massachusetts is pleased to announce that retired state Rep. David Flynn of Bridgewater was presented with the Legislator Lifetime Achievement Award. Known as the “Dean of the House,� Flynn retired this year after nearly 50 years of public service. During that time, he did much to benefit the construction industry in this state and was instrumental in the passage of the landmark Prompt Pay law just one year ago.

ASM members enjoyed an evening with the general contractors at the Westin Hotel in Waltham. The meet-andgreet event was a huge success and gave subcontractors a rare opportunity to meet with leaders from prominent Boston-area construction firms. s 1

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Photo: (C) CLEMENTS-HOWCROFT, Boston

Mark Richey Woodworking crafts and installs high-end architectural millwork for corporate, institutional, retail, restaurant, and residential clients. Our reputation is founded on peak performance and keen attention to client satisfaction.

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The Professional Contractor

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Project of the Year – East: Genzyme continued from 21

ficult process [that] took a lot of weekends and nights,” Lee is proud of his firm’s work, which they couldn’t have accomplished without the help of Gilbane’s dedicated electrical superintendent, he said. “We were able to meet on a regular basis, have open lines of communication and really develop and implement a plan which followed pretty strictly of what to do and when and how to do it,” Lee said. “The success story of how we made this happen without any incidents was that we all worked as a team and developed an organizational chart at the beginning of the project that allowed that. It was good communication skills all around.”

One of the most interesting aspects of the electrical work may be the sophisticated daylight harvesting control system, Lee said. The building is mostly glass and a lot of outdoor light comes into the building. Sensors all over the building monitor the light levels, and the light fixtures can dim all the way down to off depending on light level, making it environmentally friendly.

What else contributed to Genzyme achieving an under-budget, green building? “I think it was the economic times,” Rotkiewicz said. “All the subs were very aggressive [about] getting a project because they were all running out of work. They all sharpened their pencils.”

“I think that overall the team selected was the best bunch of guys – the A-team all around.” said Shelley. s

Dedicated to Your Success Salem State College, Orange Hall Salem, MA

We view each job as a new opportunity to make a lasting impression. Through professionalism, attention to detail, and quality craftsmanship Griffin Electric has earned praise from our clients, but more importantly, gained their trust and respect.

We are proud of the long-term relationships we have built by staying dedicated to the continued success of our clients.

Corporate Headquarters: 116 Hopping Brook Road Holliston, MA 01746 (508) 429-8830 Regional Offices: Charlotte, NC Raleigh, NC Duluth, GA Pelham, AL

MA Lic A8999

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Winter 2011

www.waynejgriffinelectric.com

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