December 2014 co web

A publication of the Utility Contractors’ Association of New England, Inc.

DECEMBER, 2014

UCANE’s 41st Annual Christmas Party & Scholarship Auction

.

. .

D A O L N E TRAI

TH Y B G N I V ty pipe f quali IS ARRI

E n ads o P I P trainlo he first one i N g n A i d C n t I e – s ud d R r y o l r d ya AME EJP is p is prou e stock CAN Team le pip e AMERI ’s ducti rs! And N, we believ P a J e E y 0 m 5 a A r e C I T e v R g to no ME erin gland i e like A ay: off New En ver it. Becaus The Right W 4-hour ts, 2 to deli g everything produc ou can trust. d e n t i s o e y e-t in d pertise est tim the fin ervice, and ex ency s emerg

P

EJ M A E T D ...AN

G IT N I R E V I IS DEL

BY

J P-24HR 1- 80 0 - E ot t .com ejpresc

D!

LOA K C U R T THE

WAT ER , WAST E WAT ER & STO R MWAT ER SO LU T I O N S

DECEMBER, 2014

IN THIS ISSUE

OFFICERS President AL MORTEO FED. CORP. President Elect TONY BORRELLI Celco Construction Corp.

Treasurer JOHN OUR Robert B. Our Co., Inc. Secretary PAUL SCENNA Albanese D&S, Inc.

BOARD OF DIRECTORS MARCELLA ALBANESE Albanese Bros., Inc. JEFF BARDELL Daniel O’Connell’s Sons, Inc. VINCENT BARLETTA Barletta Heavy Division NICK BIELLO J. D’Amico, Inc. KEVIN COLE J. F. White Contracting Co. STEVE COMOLETTI P. Caliacco Corp.

STEPHEN J. CONNOLLY ATS Equipment, Inc. MAUREEN DAGLE Dagle Electrical Const., Corp.

THOMAS DESCOTEAUX R. H. White Const. Co., Inc. ALEX DUNN Travelers JERRY GAGLIARDUCCI Gagliarducci Construction, Inc. MARCO GIOIOSO P. Gioioso & Sons, Inc. BILL IRWIN C.J.P. & Sons Const. Co., Inc. PHIL JASSET Honorary Board Member RICHARD PACELLA, JR. R. M. Pacella, Inc. BRIAN RAWSTON Jay Cashman, Inc. KENNETH STEVENS A. H. Harris & Sons, Inc. DAVID ZOPPO R. Zoppo Corp.

KLAYMAN ANNE Executive Director

3 President’s Message: It’s Been an Honor to Serve as President During UCANE’s 60th Anniversary

5 UCANE’s 2014 Wrap-Up 13 Legislative Update: • Baker-Polito Administration Begins to Form Leadership Team; Designates Representative Matt Beaton as Environmental Secretary • MA Department of Public Safety Addresses In-Service Training and Company Property Exemptions • Patrick Administration Invokes 9C Cuts; Certain FY15 Appropriations Reduced • Thirteen Additional Massachusetts Communities Designated “Green Communities” • New Coastal Water Quality Protection Grants Announced by Patrick Administration

25 In Memoriam: Former Boston Mayor Thomas Menino

27 Legal Corner: Avoidable Litigation

31 Will Settlement Force Cape Cod to Deal with $6 Billion Wastewater Bill 34 UCANE’s 41st Annual Christmas Party & Scholarship Auction 36 A World of Thanks to Those Who Continue to Support Our Scholarship Program 41 UCANE’s 2015 Scholarship Applications Now Available 43 Joe Welch Recipient of Prestigious Award at NBM Gala 45 Massachusetts Municipal Association News 47 Eastern States Ins. Agency, Inc. Receives ‘Distinguished Partner’ Award 49 UCANE’s Fourth Annual Appreciation Night Trade Show 50 UCANE Presents OSHA Mandated Signal Person and Riggers Class Conducted by Excellence in Safety Inc. 51 OSHA Fact Sheet: Cranes and Derricks in Construction 53 Financial Management: • New Regulations Bolster Longevity Annuities • Global Funds Versus International Funds • Be Wary of Accumulated Assets Editor: Anne Klayman, Associate Editor: Suzanne Savage, Graphic Designer: Sherri Klayman Construction Outlook Chairman: Al Morteo Editorial Board: Al Morteo, Tony Borrelli, John Our, and Paul Scenna CONSTRUCTION OUTLOOK published monthly by the Utility Contractors’ Association of New England, Inc., 300 Congress Street, Suite 101, Quincy, MA 02169; Tel: 617.471.9955; Fax: 617.471.8939; E-mail: aklayman@ucane.com; Website: www.ucane.com. Statements of fact and opinion are those of the authors alone and not necessarily those of UCANE and the Construction Outlook editorial board and staff.

Subscriptions are included in dues payments for UCANE members. Presorted Standard postage paid at Abington, MA. POSTMASTER, please send form #3579 to Construction Outlook, Crown Colony Office Park, 300 Congress Street, Suite 101, Quincy, MA 02169.

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

1

Branch Manager: Dick Madden 978-835-4580 (Cell)

125 Stergis Way 11 Esquire Road Dedham, MA 02026 Billerica, MA Outside Sales: T: 781.407.9133 T: 978.901.6044 Joe Bottini 508-808-0258 (Cell) F: 781.407.9134 F: 978.667.0152

Steve Cardinal

774-766-1762 (Cell)

NOW OPEN 29 Eisenhower Drive Westbrook, ME 04092 T: 207.464.0585 F: 207.854.2644

125 Stergis Way

232 Frontage Road Dedham, MA 02026 Manchester, NH 03103 Tel: 781-407-9133 T: 603.263.7350 FAX: 781-407-9134 F: 603.622.7382

It’s Been an Honor to Serve as President During UCANE’s 60th Anniversary UCANE’s message in support of clean water, a healthy environment for our families, and an investment in our aging water and sewer infrastructure is an easy message for any Administration to carry forward.

Next month Massachusetts will swear in its 72nd Governor Charlie Baker, and new Lt. Governor Karyn Polito. I congratulate them on their recent victory and I know our entire industry wishes them the very best and extends an offer of support as they begin their new jobs. UCANE welcomes the new team to the State House with a very comfortable feeling. Not only are these two elected officials knowledgeable about the concerns of small businesses in Massachusetts, they both are very familiar with the actual work that UCANE members do and the mechanics of the SRF program, that finances a large percentage of UCANE projects. With a campaign commitment to protect and enhance our state’s natural resources, I think the new Administration and UCANE have many mutual goals and we look forward to working with them very soon.

I would also like to thank outgoing Governor Deval Patrick for his many positive positions toward protecting our environment, his creation of the Massachusetts Infrastructure Program, and his recognition of UCANE as not only being able to provide public awareness for clean water issues, but also being able to provide the manpower and equipment to get those jobs done. Thank you for your environmental stewardship and thank you for your service to the Commonwealth.

As the State moves forward with a new Administration and some new faces in important roles, so does UCANE. I am completing my second term as UCANE President and will be turning over the reins to Tony Borrelli (Celco Construction Corp.). Tony will have a new “cabinet” to support him and, like the new Governor, Tony is well versed in UCANE’s issues. I know Tony will do a great job leading our Association and I wish him the very best. Unlike Governor Patrick, I won’t be taking a break or moving on to something different—I’ll be at the next Board meeting

DECEMBER, 2014

helping Tony in whatever he needs me to do!

Being President of UCANE was a little intimidating at first, but thanks to the great support I received from our Executive Director Anne Klayman, and my fellow board members, it became a very rewarding experience for me.

I’m proud of the accomplishments made by UCANE over the last two years thanks to our collective efforts—staff, contractors, and suppliers. We had our first piece of legislation in many years passed last session (Cost Adjustment).

Thanks to the doggedness of Phil Jasset we also finally got a solid Infrastructure Bill in 2014 that provides immediate increased funding to the SRF; potential for long-term clean water funding, and a place at the table for UCANE as the state deliberates on how to close the “Infrastructure Funding Gap”.

We also advanced our relationship with the Massachusetts DPU with productive meetings working toward legislation of mutual interest. We maintained our close communications with important agencies like the MWRA, BWSC, and MassDEP. Finally, UCANE increased the financial support for our many charities to new levels, which was a very rewarding feeling for me.

I’m proud of our collective accomplishments and I thank all my fellow UCANE members for their support and confidence in me during the last two years. I am proud to continue my support of this outstanding organization in the years ahead. I also want to wish all our members, their employees, and their families a healthy, happy, and peaceful Holiday Season. Merry Christmas and a Happy New Year to all!

(Please see page 5 for UCANE’s 2014 Wrap-Up)

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

3

You put building first.

We put you first.

Whether you’re a plumber, an electrician or a general or specialty contractor, you need a risk plan developed by an agent who puts your needs first. As one of the largest independent insurance agencies in New England, we can design a competitive and comprehensive insurance plan just for you. And when you feel secure, we do too. For an in-depth review of your program, call Eastern Insurance Group at 508-620-3412.

insurance

4

Eastern Insurance Group LLC easterninsurance.com

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

MA State Legislative and Industry Initiatives UCANE’s Cost Adjustment Bill Implemented January 1, 2014 UCANE first filed its Cost Adjustment Bill six years ago, and since that time our staff and members worked with legislators to prove that this Bill was as much a fairness issue as it was a construction issue.

After passing the House and Senate, Governor Patrick signed our bill into law on November 26, 2013.

All water and sewer projects advertised for bid after January 1, 2014, and bid under Chapter 30-39M are required to include Cost Adjustment for fuel (both diesel and gasoline); liquid asphalt; and portland cement contained in cast-in-place concrete when the monthly cost change exceeds plus or minus 5 percent. Prices for these items remained fairly constant during 2014, but contractors and Public Owners are now protected against volatile price changes. UCANE developed a form for monthly recordkeeping of the fuel.

Diesel Retrofit Law UCANE continued to work closely with representatives of the Mass DEP as well as the EPA to ensure that contractors are alerted to any regulation changes. Contractors have spent substantial amounts of money to retrofit their equipment to create clean air and a safer environment. With redesigned Tier IV engines coming into line in the near future greater results can be accomplished. EPA announced that unhealthy ozone days in New England totaled 9 in 2014 vs. 20 in 2013 and 29 in 2012. There were zero unhealthy ozone days in MA in 2014.

Department of Public Utility Meetings UCANE continues to work closely with DPU Director Jorge Santi and Bob Hayden of the DPU Pipeline Division regarding DPU Dig Safe Violation Reporting Procedures, potential revisions to Dig Safe legislation, and other items to promote increased excavation safety for contractors, utility owners, and the public. Jorge Santi and Bob Hayden were keynote speakers at UCANE’s January 2014 Dinner Meeting and as a follow up, contributed an article to our magazine in 2014.

Asbestos Removal Training Course UCANE has continued to offer its members the 8-hour Class II Asbestos Training Course prepared and run by ATC Associates, Inc. of West Springfield,

DECEMBER, 2014

MA. Both OSHA and the Department of Labor Standards have approved this course. To date over 300 individuals have received Asbestos Cement Pipe (ACP) Worker Safety Certificates. This number includes contractors, as well as representatives from DEP, MWRA, MWWA, and municipalities.

Water Infrastructure Funding Bill-Chapter 259 UCANE has been working closely with other environmental and engineering groups over the last several years to introduce legislation to address the estimated $21B funding gap (over the next 20 years) that exists for water and sewer infrastructure projects. Thanks in large part to Senate President Therese Murray, Senator Jamie Eldridge, and Representative Carolyn Dykema, a bill was signed into law on July 31, 2014. Chapter 259 of the Acts of 2014 introduced a wide range of provisions to assist the water and sewer funding needs for municipalities and for the State in general. Water Pollution Abatement Trust was renamed the Clean Water Trust and given an increase in loan authorization from $88M to $138M for 2015. In addition, the Bill created two Special Commissions to address long term infrastructure financing and utility coordination. The Bill provided for a UCANE representative to be appointed to both of these important Commissions (more info. below).

Infrastructure Funding Advisory Board UCANE was appointed 1 of 22 members to this broad based advisory board tasked with developing a long term funding mechanism that will address the significant gap between projected needs and current available funds for water, sewer, and storm water projects. The Board will be chaired by the Executive Office of Environment and Energy. The first meeting is planned for early 2015.

Special Commission for Utility Coordination UCANE will have 1 of 14 seats at the table for this commission that will be chaired by the DPU. The Chapter 259 legislation’s intent is to provide some mechanism, possibly through regulation, that would insure that Cities, Towns, and Public Utilities coordinate their underground infrastructure projects continued on page 7

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

5

PARTS

SALES

SERVICE

RENTALS

w w w. l h e q u i p . c o m PO Box 857 160 Elm Street Walpole, MA 02081 Phone: 508-660-7600 Fax: 508-660-7614

6

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

2014 Wrap-Up continued from page 5 with road and paving projects. The goal would be to minimize the potential for utility replacements or upgrades needing to cut into new or recent road and paving work. This would require better long term planning and improved communication and co-ordination between the stakeholders. The Commission will convene in early 2015 with a report due to the Legislature by Spring 2015.

Cape Cod Sewer Needs-Progress UCANE staff has been working with the Cape Cod Collaborative (CCC) and attended several meetings throughout the Cape in 2014. Some communities on the Cape have been working on their Capital Improvement Plans (CIP), as well as their Clean Water Management Plans, which would include various funding methods. Some communities lag behind. After a lawsuit was filed by the Conservation Law Foundation (CLF) and others against the Federal EPA for failure to enforce the requirements of the Clean Water Act (CWA) on Cape Cod towns, the DEP held a series of public meetings on the Cape in 2014 explaining the Cape Cod Areawide Plan, and the need for action on this long overdue plan to protect the Cape’s environment and ground-

water. The meetings focused on educating the general public since most Cape Cod town officials have a reasonable understanding of the needs and alternative solutions to the sewering problem. Settlement of the CLF lawsuit was recently announced with a condition that the updated regional plan (Section 208) continue to move forward through a joint effort of the EPA, the CCC, and DEP with a final regional plan to be approved by EPA by September 2015. It is expected that the final plan will satisfy the Clean Water Act and protect the entire Cape, one of Massachusetts’s greatest assets.

CDL Self Certification Policy UCANE continued to monitor new regulations by the Federal Motor Carrier Safety Administration (FMCSA) requiring all CDL operators to self-certify

by January 30, 2014. The purpose of this policy is to inform the Registry of the type of commerce CDL operators are engaged in and to determine whether or not operators are required to hold a medical certificate. Failure to comply will result in the downgrading of a CDL license to a Class D license, and a fee will apply. For more information on this policy, visit: http://www.massrmv.com/rmv/ license/8cdl.htm. continued on page 9

YOUR PARTNER IN HAZARDOUS AND NON-HAZARDOUS LIQUID AND SOLID STORAGE With equipment serviced by our own experienced technicians and backed by our 24/7 service capability, Adler Tank Rentals is the right partner for you.

Learn more or request a quote © 2014 McGrath RentCorp. All rights reserved.

AT-6065-AD-v1.0 4/14

DECEMBER, 2014

800-421-7471 www.adlertankrentals.com

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

7

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. Our expertise, integrity and unmatched service are the qualities that allow us to stand apart from the crowd. Contact us today to experience the difference.

Property & Casualty

Risk Management

Employee Benefits

300 First Ave., Suite 100, Needham, MA 02494 P :(781) 431-2500 www.nsins.com info@nsins.com

8

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

2014 Wrap-Up continued from page 7 Continuing MMA/UCANE Relationship Continued in 2014 to communicate with the Mass.

Municipal Association (MMA) on several issues that are of mutual interest. One of the most important issues relates to water and sewer projects, specifically the ability of a city or town to fund necessary projects. To reinforce this relationship, UCANE continues to publish articles from the MMA newsletter in Construction Outlook magazine, which, in turn, is distributed to all City and Towns in MA.

Legislative Activity UCANE maintains an active Legislative Committee and works with consultants at Lynch Associates to monitor hundreds of bills filed every year with potential impact to our industry. We also refiled and advocated for UCANE sponsored bills dealing with Interest on Retainage, and “Dig Safe” modifications. Of particular importance to our industry in 2015 will be implementation of Chapter 277 Soils Management regulations, implementation of the Paid Sick Leave Law, the Gas Leak legislation, and the 2014 changes to unemployment insurance. UCANE will be working with various legislators and agencies to understand the new laws, minimize the impacts (wherever possible) that these new laws will have on our industry, and to keep members apprised and informed.

OSHA and Safety Related Issues • Continued to monitor and advise our membership about any new safety regulations promulgated by the Department of Public Safety (Jackie’s Law), Division of Occupational Safety, and OSHA (New reporting and record keeping requirements effective Jan. 1, 2015).

• Sponsored training classes for members and their employees to receive certifications in Competent Person and Confined Space Entry, as well as Rigging and Signalperson, 8-Hour OSHA II Asbestos Training, Hoisting License CEU Review, and 10Hour OSHA Training.

Federal Legislative and Industry Initiatives • Continued our affiliation with the Clean Water Construction Coalition (CWCC) working with the House and Senate to maintain the Final 2013 SRF Appropriations for Wastewater (approx. $1.1B) and Drinking Water (approx. $860M). Due to multiple stalemates that occurred in Washington in 2014, continuing resolutions carried through the year with no new Federal Budget in place and little or no legislative activity. As new members of the continued on page 11

Massachusetts Water Resources Authority (MWRA) UCANE staff attended several MWRA Advisory Board meetings in order to keep up with discussions on necessary clean water and drinking water projects, and methods of funding them.

Construction Roundtable with Attorney General UCANE continues to participate in the construction roundtable meetings with MA Attorney General’s staff to discuss issues of concern to the construction industry. Recent meetings reviewed Bid Protest Decisions, Prevailing Wages for off-site assemblies, REO court decisions, and CM at Risk challenges. Meetings will resume under newly elected Governor Charlie Baker and Attorney General Maura Healey in 2015, where legal industry issues have an opportunity to be discussed.

Meetings UCANE members and staff also attended meetings in 2014 with various business, government, engineering, and environmental organizations as well as state agencies to voice utility construction industry’s position on proposed laws and regulations, and to promote areas of mutual concern.

DECEMBER, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

9

TM

Top quality precast at a fair price, when and where you want it.

That’s our pledge.

Always has been.

Always will be.

CSI

Concrete Systems, Inc.: Manholes & Catch Basins, Box Culverts, Special Box Structures, Containment Vaults, CON/SPAN® Bridge Systems, Rigid Bridge Systems Permanent & Temporary Barrier, T-Wall ® Retaining Wall Systems, Uwall Universal Wall Systems EcoWall, ARMOR CAST® Aboveground Storage Tanks & ARMOR VAULT® Below CONCRETE SYSTEMS, INC. Grade Storage Tank Systems and Custom Structures. Clampcrete 9 Commercial Street, Hudson, New Hampshire 03051 Construction Systems: Anchored Precast Barrier for Roadway (800) 342-3374 (603) 889-4163 FAX (603) 889-0039 Structures.Tunnel Systems: Precision Segmental Tunnel Lining Rings.

Visit our website at: www.csigroup.biz Cleco Manufacturing: Precision Fabricated Forming Systems, Complete Plant Design, Complete Batch Plant Computer Automation, “New England’s Infrastructure Products Source” Countercurrent Mixers & Concrete Delivery Systems.

TM

TM

CERTIFIED PLANT

2014 Wrap-Up continued from page 9 Senate and Congress take their places in January 2015, there is sure to be increased activity and monitoring by (CWCC) to protect possible attempts to reduce funding for water and sewer programs.

We will also continue to educate Capitol Hill on the many benefits that our industry provides to the environmental and economic health of our country.

• Vincent Barletta (Barletta Heavy Division) was reelected to the CWCC Steering Committee.

UCANE’s 3rd Annual Trade Show • Held UCANE’s 3rd Annual Trade Show as a way of thanking Construction Outlook advertisers. Thirtyfour Associate member companies took advantage of a complimentary opportunity to set-up displays and hand out literature detailing their products and services prior to the March Construction Forecast Dinner Meeting. Company representatives were able to meet and talk with many of UCANE’s contractors and their key personnel in a social setting. Our Fourth Annual Trade Show will be held prior to our March Dinner Meeting. (See page XX for more info.)

Honors & Awards at UCANE’s 60th Annual Banquet

Charitable Events • Supported Leukemia & Lymphoma Society of MA 5th Annual “Gala for a Cure” through Co-chairs Al and Rosemary Morteo (FED. CORP.), which raised $588,000.

• Supported the Diabetes Foundation through the Benard Family.

• Supported the Joe Andruzzi Foundation to help cancer patients.

• Sponsored the Mystic River Herring Run & Paddle to support the Mystic River Watershed Association.

• Co-chaired 13th Annual Sojourner House Golf Tournament, a shelter for homeless families.

• Supported Pan-Mass Challenge through Joel Lewin (Hinckley Allen, LLP).

• Supported the “Rodman Ride for Kids” and the Marilyn Rodman Golf Tournament through Rodman Ford Sales, Inc. • Supported the Alzheimers Association through the Richard Pacella Family.

• Supported the “Tour de South Shore” through the McCourt Foundation.

• Supported the Massachusetts Hospital School through K & K Excavation Co., Inc. n

• Presented 2014 “Contractor Member of the Year Award” to Al Morteo, FED. CORP. • Presented 2014 “Associate Member of the Year Award” to John Macaione, EJ. • Honored UCANE’s Past Presidents, 13 who were in attendance.

Specialists In Bonding And Insurance For Contractors

Member Communications • Sent monthly e-newsletter to keep members informed of the latest construction and legislative related issues.

As a complimentary feature to support our “Buy from UCANE Member Program” the e-newsletter includes Construction Outlook advertisers on a rotating basis, • UCANE’s website makes it easier for members to access information for all our events, seminars, and meetings. It includes an e-version of Construction Outlook magazine as well as all of our advertisers.

College Scholarship Program • Awarded thirteen $2,000 college scholarships to High School seniors who are the children of UCANE members and their employees.

• Held successful Christmas Party and Auction to support our Scholarship Program.

• Honored former UCANE members with Memorial and Honorary Scholarships.

DECEMBER, 2014

Since 1926 CARL TRAINA 300 Congress Street Quincy, MA 02169-0907 617.773.9200 238 Bedford Street Lexington, MA 02421 781.861.1800

LOU TONRY

281 Main Street Webster, MA 01570 508.671.9222

www.tonry.com

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

11

Call Woodco Machinery for the full line of industryleading Volvo equipment Contact your local dealer: 140 Wales Avenue Avon, MA 02322 508.584.8484 22 North Maple Street Woburn, MA 01801 781.935.3377 60 Shun Pike Johnston, RI 02919 401.942.9191

You’ve got a lot of jobs to do.

You choose a dealer who supports every one.

Smart Works.

Only Volvo delivers on a true fuel efficiency guarantee so you never have to compromise on performance or productivity. And with CareTrack machine monitoring, you can focus your attention on more important things — like growing your business. Talk to us today, or get the details at volvoce.com/smartfuel.

www.woodcomachinery.com

12

173-1123 Woodco_Fuel_MULTI_6.75x9.5_S1_5.indd 1

Volvo Construction Equipment

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

7/30/14 11:24 AM

DECEMBER, 2014

Mark Molloy, Esq., Lynch Associates, Inc.

Baker-Polito Administration Begins to Form Leadership Team; Designates Representative Matt Beaton as Environmental Secretary

W

ith their oaths of office fast approaching in January, Governor-Elect Charlie Baker and Lt. Governor-Elect Karyn Polito have begun to name the individuals who will undertake key positions in the Baker-Polito Administration. Of key interest to UCANE members, Shrewsbury Republican Representative Matt Beaton has been selected as the Secretary-Designate of the Massachusetts Executive Office of Energy and Environmental Affairs.

According to the State House News Service, Beaton, an environmental engineer who started his own energy efficiency consulting company, will "spearhead the administration's push for energy efficiency, conservation, and enhanced outdoor recreation." He currently serves on the Legislature's Joint Committee on the Environment, Natural Resources and Agriculture Committee, and has been active on energy legislation during his tenure in the House. A member of the House since 2011, Beaton has a bachelor's degree in biotechnology from Worcester Polytechnic Institute and a master's degree in energy and environmental analysis from Boston University.

In other appointments, the Baker-Polito Administration indicated their intention to appoint Chelsea City Manager, Jay Ash, as the Secretary for the Massachusetts Executive Office of Housing and Economic Development. Ash, who once worked at the State House for former Majority Leader Richard Voke, is well thought of on Beacon Hill.

Steven Kadish, former senior vice president and chief operating officer at Northeastern, has been appointed the Governor-Elect’s Chief of Staff. At Northeastern, Kadish oversaw human resources, campus planning, enterprise risk management, pro-

DECEMBER, 2014

curement, public safety, and other departments. He has also held executive positions at Dartmouth College and UMass Medical School, and worked as Senior Vice President for the Administration and Project Management at Harvard Pilgrim Health Care.

In addition to his private sector experience, Kadish worked under Baker in the mid-1990s as Assistant Secretary of the Executive Office of Administration and Finance and, under former Governor Mitt Romney as Undersecretary for the Executive Office of Health and Human Services. He also held positions in state government working in the Division of Medicaid and as Deputy Director of Mental Health projects for the former Division of Capital Planning and Operations.

Finally, the Baker-Polito Administration announced that Kristen Lepore, Vice President of Government Affairs at Associated Industries of Massachusetts, will become the Secretary of Massachusetts Executive Office of Administration and Finance. Lepore, of Danvers, served as Deputy Chief of Staff to Governor Paul Cellucci, and as Director of Fiscal Policy in the late governor's Executive Office for Administration and Finance. After her time in state government, President George W. Bush appointed Lepore as the New England regional representative for the U.S. Department of Education. She joined A.I.M., the state's largest business advocacy group, in January 2012.

The new Administration is expected to name its remaining cabinet in December or early January. It is anticipated that the Administration will continue to announce appointments to various agencies below the secretariat level in the first nine months of the new year. continued on page 15

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

13

‘Best of the Best’ in the Nation - Marshberry

#1 Independent Insurance Agency to Work for in New England - Insurance Journal

Greg Deems

Vice President UCANE Member & Construction Insurance Specialist Direct Line: 508.209.6068 gdeems@rogersgray.com

RogersGray.com 14

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Legislative Update continued from page 13

MA Department of Public Safety Addresses In-Service Training and Company Property Exemptions

T

he Massachusetts Department of Public Safethe operation of other hoisting equipment regardless ty (“the Department”) recently provided an ofof public access to areas of operation. ficial interpretation of M.G.L. 146, §53(e) and For further information about the hoisting reguthe corresponding regulations found at 520 CMR lations, please visit the Massachusetts Department 6.06 and 6.07 with respect to in-service training and of Public Safety’s website at: www.mass.gov/eopss/ company property exemption requirements. In paragencies/dps/. A copy of the memorandum may be ticular, the policy memorandum addressed the folfound at: http://www.mass.gov/eopss/consumer-protlowing question: and-bus-lic/license-type/hoisting/in-service-training “How do the in-service training and company and-company-property-exemption.html. property exemption provisions within Chapter 146, continued on page 17 section 53(e) and 520 CMR 6.06 and 6.07 apply in light of OSHA requirements for the workplace training of powered industrial truck operators found at 29 CFR 1910.178(l)?”

In answering the question, the Department interpreted the law to allow total or partial exemption from all hoisting licensure and in-service training requirements for qualifying companies. Both full and partial exemption will depend on the general public’s access to company property and the type of hoisting equipment operated on company property.

With respect to full exemption, any company that falls within the definition under M.G.L. c.146, §53(e)(2) and operates only industrial lift trucks and forklifts exclusively on company property will be fully exempt from all hoisting licensure and in-service training requirements if the general public does not have access to any area where industrial lift trucks and forklifts are operated. With respect to partial exemption, any company that falls within the definition under M.G.L. c.146, §53(e)(2) and operates industrial lift trucks and forklifts in addition to FREE other hoisting equipment exclusively on company property will be parto join. tially exempt from hoisting licensure FREE and in-service training requirements to use. if the general public does not have find out more at: smartpaybusiness.com access to any area where industrial lift trucks and forklifts are operated.

Start saving at our Cumberland Farms locations in Section 53(e) of Chapter 146 and New England, Florida & New York 520 CMR 6.06 and 6.07 will apply to

ng

ci introdu

save your business ¢

10 on every gallon

of gas for every vehicle in your business fleet every day

DECEMBER, 2014

Construction Outlook

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

15

Highest Level of Quality, Greatest Level of Skill

Dagle Electrical Construction, Corp.

Construction: • • • • • • • •

Heavy Industrial Commercial Multi-Unit Residential Tenant Fit-Out Design Build Ground Up Renovation Pumping Stations

Other Services: • • • • • • •

Tel/Data Fiber Optic Fire Alarm Stand By Power Systems Sports Lighting Marine Power Installations Special Event Lighting & Power

Transportation:

• • • • •

Traffic Signal Systems Highway & Street Lighting Systems Intelligent Transportation Systems Parking & Snow Melt Systems Rail Transit Installation

Alternative Energy: • Wind Turbine • Photo Voltaic • Green Technology

WBE Certified

P.O. Box 760982 • Melrose, MA 02176-0006 Phone: 800.379.1459 • Fax: 781.937.7678 • Email: dec@deccorp.com

www.deccorp.com

Legislative Update continued from page 15

I

Patrick Administration Invokes 9C Cuts; Certain FY15 Appropriations Reduced

n an effort to account for less revenue than anticipated in fiscal year 2015, Governor Deval Patrick filed the necessary paperwork to immediately cut $198.1 million from the current state budget, including local funding for school transportation and special education, as part of a larger effort detailed by the Patrick Administration to close a projected $329 million mid-year budget gap. At the same time, the Governor filed legislation to reduce unrestricted local aid to cities and towns by $25.5 million, a 2.7 percent cut that would bring local aid back to 2014 levels.

Under authority granted through Chapter 29, Section 9C (hence the reference to “9C cuts”), whenever, in the opinion of the Secretary of the Executive Office of Administration and Finance, available revenues as determined by him from time to time during any fiscal year will be insufficient to meet all of the expenditures authorized to be made from any fund, the Governor may reduce appro-

priations to agencies under his control. For agencies or constitutional offices not under the control of the Governor (i.e., judiciary, municipalities, legislature, etc.), the Governor can only make a recommendation to undertake a reduction. (i.e., the filing of legislation in recognition that it is not within the Governor’s purview).

In addition to the local aid cut, Patrick is also seeking legislative approval for an additional $10 million cut to the Massachusetts Department of Transportation and $21.8 million from non-executive branch agencies that are outside his authority. Several agencies and programs, such as the Department of Children and Families, early education, Community Preservation Act funds, and Chapter 70 local school aid, do not face cuts in the governor's plan.

The projected budget shortfall results from the $70 million in lost revenue from an expected income tax reduction in January; a $176 million shortfall in non-tax revenues; and $82.3 million in costs associated with an economic development law approved over the Water Works Specialist John Hoadley and the Sonsbudget Inc. was summer after Works Specialist Tel:781-878-8098 Fax:781-878-5298 Water Works Specialist signed.

John Hoadley and Sons Inc. John Hoadley and Sons Inc.

Water Tel:781-878-8098 Fax:781-878-5298 Tel: 781-878-8098 Fax: 781-878-5298 The largest reduction being “Our Products Are the Most Trusted Names in the Industry” “Our Products Are the Most Trusted Names in the Industry” made under the Governor’s 9C “Our Products Are the Most Trusted Names in the Industry” � U.S. Pipe ● Cultec Chambers U.S. Pipe ● Cultec Chambers authority is in the area of health � Mueller Fire Hydrants ● National Pipe & Plastics • U.S. Pipe • Cultec Chambers and with $45.4 � Mueller Tapping Sleeves & Valves ● human ADS Pipe &services, Chambers Mueller Fire Hydrants ● National Pipe & Plastics • Mueller Fire Hydrants • National Pipe� &Smith Plastics Blair Clamps & Couplings ● General Foundry Castings million being cut from hospital Mueller Tapping Sleeves & Valves ● Valves ADS Pipe Chambers • Mueller Tapping Sleeves & • &ADS Pipe & Chambers Mechanical Services and nursing home rates paid � Tapping Sleeves & Gates Installed / Cut • Clamps Smith & Blair Clamps & Couplings • General Foundry Castings Smith Blair Couplings ● General Foundry Castings � Line Stop / EZ Valves through MassHealth and $11.6 Mechanical Services � Cutting of Chilled Water Lines & Steam Lines Mechanical Services the Department of � Pressure Testingmillion & Disinfectionfrom of New Mains � Tapping Sleeves & Gates Installed / Cut � Installation & Testing of Backflow Preventers largely 24 Hours • Tapping Sleeves & Gates Installed / Cut Mental Health, through Sales& Service � Large Diameter Hydraulic Pipe Cutting � Line Stop / EZ Valves Serving all of delays.

• Line Stop / EZ Valves program implementation � Hydrant Installation & Repair New England � Cutting ChilledWater WaterLines Lines&&Steam SteamLines Lines � Electronic Leak Detection • Cutting of of Chilled Also included in the $198.1 mil“Water-Sewer-Drain Supplies at a Competitive Price” • Pressure Testing &&Disinfection � Pressure Testing DisinfectionofofNew NewMains Mains lion budget cuts, charter school www.hoadleyandsons.com • Installation && Testing ofof Backflow � Installation Testing BackflowPreventers Preventers 24 24Hours Hours672 Union Street Rockland, MA 02370 reimbursements were reduced • Large Diameter Hydraulic Pipe Cutting Sales& Service Sales & Service � Large Diameter Hydraulic Pipe Cutting by $1.2 million, special educa• Hydrant Installation & Repair Serving ofof Servingallall tion reimbursements were re� Hydrant Leak Installation & Repair New • Electronic Detection NewEngland England duced by more than $3.8 million, � Electronic Leak Detection and regional school transporta“Water-Sewer-Drain Supplies at Supplies a Competitive Price” Price” “Water-Sewer-Drain at a Competitive tion funding was reduced by www.hoadleyandsons.com www.hoadleyandsons.com $18.7 million.

� � � �

672 Union Street MA Rockland, 672 Union Street Rockland, 02370MA 02370

DECEMBER, 2014

continued on page 19

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

17

Legislative Update continued from page 17

Thirteen Additional Massachusetts Communities Designated “Green Communities”

G

overnor Deval Patrick recently announced the designation of 13 new “Green Communities”. With a total of 136 participating cities and towns, more than half of all Massachusetts residents now live in a “Green Community”. In addition to recognizing the new communities, Governor Patrick celebrated the success of seven communities in achieving the program’s 20 percent energy use reduction goal and released the program’s first ever progress report.

The newly designated municipalities include Ashburnham, Belmont, Dalton, Dudley, Everett, Goshen, Halifax, Lanesborough, Millville, Pembroke, Upton, Warwick, and Wellfleet. The communities were awarded designation grants totaling more than $2 million to support clean energy projects. The seven designated communities that have achieved a 20 percent reduction in municipal energy use are: Arlington, Belchertown, Cambridge, Natick, Palmer, Springfield, and Sutton. Green Communities grants have already supported more than 500 completed projects across the Commonwealth, projected to deliver annual energy cost savings of nearly $4 million.

DOER’s Green Communities Designation and Grant Program, created by the Green Communities Act, rewards communities that win Green Communities designation by meeting five clean energy benchmarks: • Adopting local zoning bylaw or ordinance that allows “as-of-right siting” – allowing a project to proceed without requiring a special permit or any time of discretionary approval – for renewable and/or alternative energy research and development facilities, manufacturing facilities or generation units; • Adopting an expedited permitting process related to the as-of-right facilities; • Establishing a municipal energy use baseline and a program to reduce use by 20 percent within five years; • Purchasing only fuel-efficient vehicles for municipal use, whenever such vehicles are commercially available and practicable; and • Requiring all new residential construction over 3,000 square feet and all new commercial and industrial real estate construction to reduce lifecycle energy costs (i.e., adoption of an energy-saving building “stretch code”).

Once designated by DOER as official “Green Communities”, cities and towns are eligible for awards to fund local renewable power and energy efficiency projects that advance both municipal and state clean energy

DECEMBER, 2014

goals. Grants awarded so far assist an array of projects across the state, including the installation of solar panels on town office buildings, weatherization at schools and municipal buildings, installation of high-efficiency street lights, and a host of energy efficiency upgrades.

Grants for the communities are funded by Alternative Compliance Payments (ACP) made by electricity suppliers who do not meet their Renewable Portfolio Standard obligation to purchase a sufficient percentage of renewable energy. Green Communities grants also receive funding from proceeds of carbon allowance auctions under the Regional Greenhouse Gas Initiative (RGGI).

The program awards are limited to $1 million, but, at a minimum, provide each community with a $125,000 base grant plus additional amounts based on certain criteria. Since 2010, the state has paid out more than $30 million through the Green Communities grant program.

For a map of Massachusetts Green Communities, please visit: www.mass.gov/eea/docs/doer/green-communities/grant-program/map-summary-green-communities.pdf continued on page 21

SAFETY TRAINING & GEAR, TOO! At our 24-seat classroom & Safety Wear Corner

Training: OSHA Training MA Hoisting License & Flagger CSL Credit Classes First Aid/CPR/AED HazWoper & Confined Spaces Safety Management

High-Visibility: Vests Bomber Jackets Foul Weather Gloves Flagger Gear Reference Manuals EXCELLENCE IN SAFETY INC. 24 Spring Bars Rd., Building 2 Falmouth, MA 02540

www.excel-in-safety.com capesafetyguy@aol.com T: 508-548-0866

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

19

EJ is your trusted source for infrastructure access solutions. Now offering solutions in a variety of materials – ductile iron, cast iron, aluminum, and composite.

Learn more at ejco.com or call 800 626 4653 East Jordan Iron Works is now EJ

20

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Legislative Update continued from page 19

T

New Coastal Water Quality Protection Grants Announced by Patrick Administration

he Patrick Administration recently announced $368,000 in Coastal Pollution Remediation (CPR) grants to protect coastal waters in Massachusetts. The CPR grant recipients are Kingston, Duxbury, Hingham and Manchester-by-the-Sea. According to a press release from the Governor’s Office, the goal of the CPR program, administered by EEA’s Office of Coastal Zone Management (CZM), is to improve coastal water quality by reducing or eliminating nonpoint sources of pollution—the leading cause of water quality impairment in the nation.

This type of pollution occurs when contaminants are picked up by rain, snow melt, and other flowing water and carried over land, in groundwater or through drainage systems to the nearest body of water. The CPR program has given $9 million in grant funding since 1996.

The following projects were funded through this year’s CPR awards: • Town of Duxbury: Bay Road Best Management Practices Construction-Phase III -

$125,000/Match: $41,667. To improve water quality in the “Nook” and Kingston Bay, the Town of Duxbury will construct systems to intercept and treat contaminated stormwater runoff at four locations. This project caps off nearly a decade of work by the town to address discharges of contaminated stormwater from paved roads in this area and builds on projects funded through previous CPR and Massachusetts Department of Environmental Protection (MassDEP) grants.

The project will support efforts to reopen shellfish beds that have been closed to harvesting, reduce the frequency of beach closures, and improve fish habitat.

• Town of Hingham: Walton's Cove Stormwater Mitigation - $13,000/Match: $4,916.19.

The Town of Hingham will finalize designs and obtain permits for a stormwater treatment system that uses soils and plants to intercept and filter runoff to reduce sediment and bacterial contamination to Walton’s Cove and ultimately continued on page 23

BondLetor Insurance Problems? us improve upon your current program.

We can help!

• Problem Obtaining Bonds? • Slow Service? • Uncompetitive Terms?

• Bid Bonds • Performance & Payment Bonds • High Insurance Premiums? • Inadequate Coverage? • Poor Service?

• All Forms of Liability and Property Insurance • Newton Johnson, President • Oscar B. Johnson, Executive Vice President • Mark D. Leskanic, Vice President • Christopher Clark, Account Executive

Eastern States Insurance Insurance

Bonds

Employee Benefits

Risk Management

50 Prospect Street | Waltham, Massachusetts 02453 | (781) 642-9000 | (781) 647-3670 fax | esia.com ESI 6x3.75adv4.indd 1

DECEMBER, 2014

12/11/09 3:13:09 PM

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

21

Protect your crew and a whole lot more.

From training your crew on safety regulations to helping you choose the right equipment for the job, our innovative Trench Safety Solutions help increase productivity and lower costs. Next time you’re underground, count on us to help keep your crew, and your project, safe.

UnitedRentals.com/Trench 800.UR.RENTS

169B Memorial Drive Shrewsbury, MA 01545 508-842-3790

The Underground Equipment Specialist® • Shoring

• OSHA Training

• Confined Space Safety Equipment

• Pipe Plugs & Testing Equipment

• Engineering

• Steel Road Plates

© 2013 United Rentals, Inc.

22

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Legislative Update continued from page 21 Hingham Harbor. This project is part of a wider effort to improve habitat and water quality in the cove and includes a strategy to inform and involve local residents.

• Town of Kingston: Jones River Estuary Best Management Practices Design and Implementation Project Phase III - $118,262/Match: $39,450. The Town of Kingston will construct a system to treat stormwater runoff, which is a major source of bacteria and sediment to the Jones River. The system will be installed in the Landing Road area and will slow and hold stormwater runoff to filter out pollutants. This project is in the third phase, building on work funded through the Massachusetts Bays National Estuary Program, MassDEP, and previous CPR grants. The stormwater treatment systems will improve water quality in the lower Jones River and Kingston Bay, supporting efforts to open shellfish harvesting areas, some of which have been completely closed to shellfishing for nearly 100 years.

• Town of Manchester-by-the-Sea: Downtown Improvement Phase II - Stormwater Management - $125,000/Match: $42,000. As part of a multi-faceted downtown improvement project,

the Town of Manchester-by-the-Sea will conduct a feasibility study for using Low Impact Development (LID) elements to address runoff pollution to Sawmill Brook/Cat Brook and Manchester Harbor. This project is expected to serve as a model for other communities with aging infrastructure and urban landscapes on how to effectively treat and reduce stormwater using LID technologies, with the ultimate goal of improving water quality and habitat.

The Massachusetts Office of Coastal Zone Management (CZM) is the lead policy and planning agency on coastal and ocean issues within the Executive Office of Energy and Environmental Affairs.

Through planning, technical and grant assistance, and public information programs, CZM seeks to balance the impacts of human activity with the protection of coastal and marine resources. The agency's work includes helping coastal communities address the challenges of storms, sea level rise, and other effects of climate change; working with state, regional, and federal partners to balance current and new uses of ocean waters while protecting ocean habitats and promoting sustainable economic development; and partnering with communities and other organizations to protect and restore coastal water quality and habitats. n

508-548-1800 fax: 508-548-6917

396 Gifford St., Falmouth, MA 02540 P.O. Box 913, Falmouth, MA 02541

COLD PLANING SERVICES

RoadTec RX 400 Milling Machine

hot Mix Asphalt Roadway Milling

3FT & 5FT Drum Widths

Bridge Decks Trench excavation

Cutting Depth Up to 12inChes For rental information and quotes please contact Andrew McDermott at amcdermott@lawrencelynch.com

DECEMBER, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

23

1901 Main Street • Walpole, MA 02081 Tel: 508-668-8699 • www.arcscrap.com Mon – Fri: 7 a.m. – 5 p.m. • Sat: 8 a.m. – 4 p.m.

We Buy Scrap!

Servicing all of MA and RI. We buy scrap, haul scrap, rent scrap processing equipment, provide lowbed service and more!

We Want Your Scrap!

“Recycling the Past to Preserve the Future.”

24

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

I n M emoriam

Thomas M. Menino Former Mayor of Boston

T

homas M. Menino, the longest-serving Mayor in Boston’s history, lost his battle with cancer on October 30, 2014, at the age of 71. The Mayor was committed to cleaning up Boston Harbor, The Charles, and Neponset Rivers and he made sure that Boston had the cleanest urban beaches in the country.

This past July when former Mayor Menino was asked what his legacy would be, he pointed to some of his biggest achievements. He mentioned, the development of the South Boston Waterfront, the once derelict pocket of the city that he christened the “Innovation District,” which has become home to more than 200 new companies in the past three years. He talked of the 1996 merger of the city’s public hospital with Boston University’s private medical center. “It took a lot of yelling and screaming at each other to get it done, but Boston Medical Center is now one of the foremost hospitals around.”

The accomplishment he was most proud of is Camp Harbor View, a summer camp for at-risk Boston children that he cofounded. Operated with the Boys & Girls Clubs of Boston, the camp served

DECEMBER, 2014

about 800 kids last summer. “They get breakfast, lunch, and dinner, and it opens these kids’ eyes to something different,” he says. “A lot of kids have said to me that it changed their whole life.”

Thomas Michael Menino was born on December 27, 1942, in Hyde Park. He graduated from high school in 1960 and briefly attended night classes at Boston College, but dropped out, saying college was not for him. Besides, he said, his hero, Harry S. Truman, never attended college. But Mr. Menino later regretted that decision, and in 1988, at age 45, earned a bachelor’s degree from the University of Massachusetts, Boston. Out of high school, he sold insurance for Metropolitan Life. He met his future wife, Angela Faletra, in 1963 when they were playing tennis on adjacent courts, they married three years later and had two children, Susan and Thomas Jr. In addition to his wife and children, his brother David, his sister Carolyn Phipps, and six grandchildren survive him.

The Officers, Board of Directors, Members, and Staff of UCANE extend their deepest sympathy and condolences to the Menino family. n

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

25

Robert T. Ferguson, Hinckley Allen, LLP

Avoidable Litigation The Appeals Court issued an unpublished decision at the end of October in a case where costly litigation could have been avoided.

The case arose out of a public construction project. The millwork subcontractor asserted claims against the general for additional compensation. The sub’s time for completion was a major issue at trial and on appeal.

The general contract included a “time is of the essence” clause and provided that the project had to be substantially complete within 540 days of the town’s issuance of a notice to proceed to the general.

The general sent a letter informing the subcontractor that it was being awarded a subcontract, and the parties executed the subcontract three weeks later.

The subcontract did not include a specific completion date, but required completion with “due consideration” to the time specified by the awarding authority for completion of the entire project. In a separate letter bearing the same date as the subcontract, the general referenced the “time for completion” as “540 days.”

DECEMBER, 2014

A

s a result, there were three possible deadlines for the sub to complete its work: (1) 540 days from the notice to proceed; (2) 540 days from the general contractor’s notice that it intended to award a subcontract to the sub; and (3) 540 days from the date of the subcontract.

532 days after the parties executed the subcontract, the general contractor hired a different firm to produce a major item that the sub was contracted to supply. The sub filed a lawsuit contending that it had 540 days from the date of the subcontract to complete its work, and claiming that before the general could switch suppliers, it had to give notice under the subcontract. At trial, the subcontractor testified that it was capable of producing the item within the 540 day time period.

Calculating the 540 day time period from the date of the town’s notice to proceed, the trial court rejected the subcontractor’s position. Since the sub hadn’t completed its work by this earlier deadline, the court concluded that the general was not obligated to give continued on page 29

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

27

“Nationally Ranked First-Tier in the Litigation-Construction category by U.S. News & World Report and Best Lawyers”*

U.S. News and Best Lawyers considered more than 10,000 law firms in 170 metropolitan locations *Source: U.S. News Media Group and Best Lawyers

Many thanks to our clients, peers and friends whose comments contributed to our being awarded a first-tier national ranking in the Litigation-Construction category.

h i n c k l e y a l l e n . c om ALB AN Y

B OS T ON

C ON C O R D

H A RTFORD

N EW YORK

PROV IDEN CE

Hinckley, Allen & Snyder LLP, Attorneys at Law

28

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Legal Corner continued from page 27 notice to the sub before switching suppliers.

The Appeals Court upheld this decision on appeal. The court rejected the sub’s calculation of the 540-day completion period from the date of the subcontract as unreasonable, because it would allow essential components of the project to be completed weeks after the substantial completion date for the project as a whole. The Appeals Court also concluded that the subcontractor’s calculation was contrary to the terms of the subcontract requiring the sub to complete its work with “due consideration” to the time for completion of the entire work.

The result is that, although the subcontract did not make the deadline clear, did not specifically incorporate the general contract’s substantial completion deadline by reference, and included only a vague reference to the time for completion of the entire project, the court held the subcontractor to the substantial completion deadline spelled out in the general contract.

It is not clear from the Appeals Court’s decision whether the subcontractor tried to confirm its completion date with the general. The sub might have avoided timing problems if it had. It may be that the sub thought its “540-day” deadline was clear. But the Appeals Court held that the subcontractor’s interpretation of the

deadline was unreasonable in light of the deadline for substantial completion of the project as a whole. This timing issue was fatal to the subcontractor’s position.

There are two practical takeaways from this case.

The first is a fresh reminder that deadlines matter, especially in Massachusetts where the courts can be very strict on timing and notice issues. The court applied a strict interpretation as to timing here, holding the subcontractor to a deadline that wasn’t clearly identified in the subcontract.

The second is to use clear and complete subcontracts. Doing so can be an effective litigation avoidance tool. While the general contractor ultimately prevailed in this case, it was only after experiencing and managing litigation, at the trial court level and on appeal. This time-consuming and costly litigation likely could have been avoided if the subcontract included a specific completion date. n

Ferguson offers a complete line of products to cover all your water, sewer and storm water management needs, and our relationships with the waterworks industry’s top vendors give our customers peace of mind through unmatched customer service, on-time delivery, and industry leading fill rates.

DI PIPE & FITTINGS | PVC PIPE & FITTINGS | VALVES & HYDRANTS HDPE PIPE & FITTINGS | GEOTEXTILES | BRASS CASTINGS | STORM WATER CHAMBERS | SAFETY & TOOLS WATER MAIN TAPS | HYDROSTATIC TESTING | HYDRANT REPAIR

FERGUSON.COM

DECEMBER, 2014

Canton (781) 828-1350

North Harwich (508) 430-1696

Worcester (508) 754- 2027

©2014 Ferguson Enterprises, Inc.

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

29

WORK TOOLS

RULE • Get up to a $5,000 credit on your choice of a CAT work tool.

• Plus 0% for 48 months, and a three-year/5,000 hr. Powertrain and Hydraulic EPP, when you buy a new CAT Wheeled Excavator M313, M315, M316, M318, M320, M322.

Or a new CAT Track Excavator 311, 312, 313, 314, 316, 318.

or • Get up to $1,000 credit on the purchase of your second CAT work tool.

• Plus 0% for 48 months.

• And, no payment for the first three months, when you buy a new CAT Skid Steer Loader; Multi Terrain Loader; Compact Track Loader; Backhoe Loader; Compact Wheel Loader 914 and smaller; Wheel Loader 924, 930, 938; Mini Excavator 308 and smaller; Dozer D5 and smaller.

HERE’S THE CATCH OFFER GOOD FROM OCTOBER 1, 2014 THROUGH JANUARY 31, 2015.

Call your sales representative or the nearest Milton CAT location.

www.miltoncat.com

Milford, MA 508-634-3400

North Reading, MA 978-276-2400

Scarborough, ME 207-883-9586

Wareham, MA 508-291-1200

Brewer, ME 207-989-1890

Cranston, RI 401-946-6350

Warner, NH 603-746-4671

Richmond, VT 802-434-4228

Hopkinton, NH 603-746-4611

Promotional offer valid through Caterpillar Financial Services with credit approval.

Will Settlement Force Cape Cod to Deal with $6 Billion Wastewater Bill Written by Rich Eldred

The time is nigh for Cape Cod and the hourglass is already emptying.

The Conservation Law Foundation and U.S. Environmental Protection Agency announced a settlement on Monday of twin lawsuits the CLF filed in 2010 and 2011 to pressure the EPA to pressure Cape Cod to clean up its wastewater. Now the pressure is on the Cape Cod Commission, Barnstable County, and individual towns to determine who’ll clean up the Cape’s waters, who’ll and how will pay (up to $6-billion) for it, and to implement the plan. They have just one year to figure out the who-does-what and four years to get rolling.

“We said we would put our arguments aside and give you (the EPA) a chance to put your money where your mouth is,” explained CLF attorney Christopher Killian, vice president of their Clean Water and Healthy Forests Program. ”But we did not give up our legal rights to make that argument and we gave the EPA a four-year period to deliver.”

The original Aug. 24, 2010 lawsuit alleged the EPA had issued “arbitrary and capricious” approvals for the total daily load of nitrogen permitted to enter 13 Cape Cod bays and estuaries, including Pleasant Bay and many smaller coves, by failing to consider nitrogen discharge from stormwater, septic tanks, waste treatment plants as “point sources” which are more stringently regulated. Point sources require special permits, non-point sources don’t. That could’ve made a federal case out of septic upgrade, and that suit is the one on ice.

“We essentially agreed with the EPA to put that question aside based on the idea that the EPA recognizes it has to approve the updated area-wide management plan the Cape Cod Commission is developing,” Killian said. “We decided together with the EPA we’d all invest in that process and got assurances from the EPA they would oversee the process and they made commitments to us and the court.”

Fortunately, the Cape Cod Commission has been working on a master plan the past couple of years. That update of the 1978 Clean Water Act Section 208 Area-

DECEMBER, 2014

wide Wastewater Management Plan must be approved by the EPA by Sept. 2015. That approval will satisfy conditions of the second suit, filed in 2011 after talks to settle the first broke down, that alleged the EPA was not enforcing the Clean Water Act since Cape towns didn’t have an updated plan to control nitrogen pollution.

While the Commission closed public comment on the plan this week, and hopes to have a final draft

by January, the big question is who will oversee Cape Cod’s cleanup and how will it be paid for?

“It’s a major open question,” Killian agreed. “Federal law requires identification of entities that implement the plan and also secure funding at the time of EPA approval. So that question has to be considered within next year. The court is well aware of that.”

While the Cape Cod Commission can draw up a wastewater plan, it can’t force towns into it nor can it issue bonds to pay for sewer construction. Killian said the state Department of Environmental Protection will help ensure Cape Cod has “a plan and comes up with a program and infrastructure to implement the plan.”

“This also put the Cape Cod Commission, state and towns on notice this is not a plan that can sit on the shelf gathering dust. Federal law requires the recognition of agencies that have the power to raise funds and obtain permits and that will be a major task,” he declared.

Orleans is still working on a wastewater solution and operates the Tri-Town Septage Treatment Facility with Brewster and Eastham. continued on page 33

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

31

New England’s Premier Precaster!

(800) 696-SHEA (7432) Fax: (978) 388-6959 www.sheaconcrete.com info@sheaconcrete.com

Other Products Include: Median Barriers, Tanks, Pump Stations, Leach Chambers, Fire Cisterns, Utility Structures, Curbing, Precast Footings, Bollards, Stairs, etc…

773 Salem Street 87 Haverhill Road 153 Cranberry Hwy Wilmington, MA Amesbury, MA Rochester, MA Mail: PO Box 520 ● Wilmington, MA 01887

32

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Cape Cod continued from page 31 “I think this heightens the potential priority of having a more regional solution-based process,” reflected Orleans Selectman Dave Dunford. “I think the EPA settlement will accelerate the participation of our sister towns and I expect more frequent representation from Brewster and Eastham. They’ll be part of the solution on whether we upgrade or demolish the plant. We recognize the need for a watershed based solution. We’re not going to be dumping treated water into Namskaket Marsh.”

Killian noted the law doesn’t require a single agency to oversee all this, individual towns can handle things on their own – but all the Cape’s waters must be cleaned up.

“Everything must be solved,” Killian said. “If towns fail to move forward we would expect the county or state to step in and take action. The way the law is set up it doesn’t allow partial or haphazard outcome.”

The CLF has had success with this sort of thing before. They filed suit against the Metropolitan District Commission in 1983 and that led the eventual clean-up of Boston Harbor.

This settlement still has to be approved by a judge. Once it is, a letter will go out to all parties from the EPA informing them what must be done.

DECEMBER, 2014

The EPA will continue to monitor whatever agency or agencies are in charge for six years to make sure the plan is being implemented.

Sewer systems that are under consideration or construction in Chatham, Orleans and Harwich (to reduce nitrogen input into Pleasant Bay) are all slated to cost close to $200 million or more. The cost will be much higher for larger communities. The Cape Cod Commission estimated (in 2013) an optimal Capewide cost of $4.2 to 5.2-billion dollars. About 20 percent of that involved Title 5 upgrades that would continue to serve 40 percent of the Cape.

They estimated a “localized approach,” i.e., more town-by-town, would cost $4.6 billion to $6.2 billion.

Estimates for annual “user” debt service costs were between $47 million and $70 million a year depending on whether the solutions were regional or local.

Costly but necessary, the CLF believes.

“The concern was ever increasing pollution in these pristine bays so critical to the Cape and its economy,” Killian recalled. “Our organization is about clean water and we saw a lack of discernable action. We felt the need for more comprehensive clean-up plan and strategy. So we filed two related suits.”

Reprinted with permission from Cape Cod Wicked Local. n

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

33

UCANE’s 41 Annual Christmas Party & Scholarship Auction st

If

you’ve come to expect the unexpected when attending a UCANE event, then you weren’t the least bit surprised by anything you saw at UCANE’s Scholarship Auction. However, even for a UCANE event, what arriving guests saw as they entered The Lantana in Randolph, MA had to have them shaking their heads in disbelief. You could not help but be amazed by the 16-foot inflatable nutcracker standing as honor guard, welcoming each of our holiday guests at the front entrance. It was then and there that every attendee knew that the UCANE staff had gone above and beyond to make this night a memorable success.

Everyone knew at that time that this would be a night of surprises with fabulous and unique auction items.

As each guest entered the main ballroom, the spirit of Christmas had to fill their hearts as the room had been transformed into something resembling Santa’s workshop at the North Pole. As eyes roamed slowly across the room, one simply could not take in the huge collection of auction items. At one side of the ballroom, a 6-foot hand painted nutcracker stood guard over Santa’s red and silver sleigh. Behind the sleigh, a 10-foot furry inflatable teddy bear looked out over the room as if to welcome everyone. A pair of lighted spinning ferris wheels further enhanced the festive atmosphere. Beneath the ferris wheels, rolling popcorn and cotton candy machines provided a carnival-like atmosphere to the room. Christmas music played softly in the background from a Rowe Juke Box, which added to the holiday spirit.

With so much to take in, auction attendees, with their auction brochures in hand roamed from one end of the room to the other, jotting down the number of their favorite items that they would be bidding on later in the evening.

From the festively decorated tables with poinsettia centerpieces, to the brightly lit Christmas trees, to the highly coveted outdoor inflatables, one being “Grandma Got Run Over by a Reindeer” who just happened to be driving a Steamroller. There were Chapman lamps, estate jewelry, furniture, and both autographed and unsigned sports memorabilia. There were tons of asphalt and tons of stone. There were overnight hotel stays and golfing at some of this area’s best golf courses. There were fishing trips, tours, and restaurant gift certificates. Thinking of taking a trip? There were airline tickets to any destination in the USA. Need tickets to the Red Sox, Bruins, Patriots, or Celtics? There were plenty of those available. There was dinner for four with Patriots’ greats Joe Andruzzi and Russ Hochstein. And for the music fans, there was an autographed AC/DC drumhead paired with a limited edition AC/DC Monopoly game, and their latest CD.

It would not be easy to take home your favorite item, as in most cases three or four buyers vigorously tried to outbid one another, driving the prices higher and higher. But still, with over 95 items offered there were also some that went for less than their value which made our buyers very happy. All in all everyone had a great time and we can only hope that next year’s event is as successful as this one was.

UCANE’s Annual Scholarship Auction certainly brings out the best in our members as their generosity knows no bounds.

Whether donating products and services or making cash donations so that our staff can search for interesting and unusual items, our members support this event like no other. As significant, members and their employees… whose sons and daughters have previously won scholarships…know what it means for their children to be recognized for their scholastic achievements, extra curricula activities, and community service. They make it a point to give back to our scholarship program so that other students can experience the same recognition.

The UCANE staff wants to express their gratitude to our members and friends who so generously donated their products and services, and also cash to buy the more unique auction items, as well as those who purchased these items. Not only was the night dedicated to keeping our Scholarship Program ongoing, it was a night filled with fun, friends, competitive bidding, and laughs which was the perfect way to kick off the holiday season. n

A world of thanks to the following UCANE members and friends who donated cash or provided items or services for our auction...and to those who purchased auction items.

ATS Equipment, Inc. Albanese Bros., Inc. Allied Recycling Center American Shoring Inc. A. F. Amorello & Sons, Inc. A. Andreassi & Son, Inc. Joe Andruzzi & Russ Hochstein Aquitaine Restaurant Barletta Heavy Division A. R. Belli, Inc. Benevento Companies Biszko Contracting Corp.

Blue Man Group Boston Food Tours Brookmeadow Country Club C.J.P. & Sons Const. Co., Inc. C&S Insurance P. Caliacco Corp.

Celco Const. Corp.

Central Square Theater Chapman Waterproofing Co., Inc. Concrete Systems, Inc. Dagle Electrical Const., Corp.

Dale Carnegie Institute D’Allessandro Corp.

J. D’Amico, Inc.

Darmody, Merlino & Co., LLP DeSanctis Insurance Agency, Inc. James J. Dowd & Sons Insurance The Driscoll Agency EJ Eastern Insurance Group, LLP Eastern States Ins. Agency, Inc. T. L. Edwards, Inc. Environmental Partners Group Inc. Equipment4Rent Excellence in Safety, Inc. F1-Boston FED. CORP. Feeney Bros. Excavation, LLC Ferguson Waterworks Four Points By Sheraton Hotel GVC Construction, Inc. Gagliarducci Construction, Inc. Garrity Asphalt Reclaiming, Inc. Gencorp Insurance Group Pelino Gioioso P. Gioioso & Sons, Inc. HD Supply Waterworks The Hall at Patriots Place I.W. Harding Const. Co., Inc. A. H. Harris & Sons, Inc.

HUB Int’l New England, LLC Iaria Bros., Inc. Improv Asylum P. T. Kelley, Inc. Kirkland, Albrecht & Fredrickson, LLC The Lafayette House, Foxboro, MA P. A. Landers, Inc. Lawrence-Lynch Corp.

Mike Lenihan Joel Lewin (Hinckley Allen, LLP) G. Lopes Construction Inc. Lorusso Corporation Lorusso Heavy Equipment, LLC S. M. Lorusso & Sons, Inc. Ludlow Construction Co., Inc. Marois Bros., Inc. W. B. Mason Co. McCourt Construction Co. McDevitt Trucks McGladrey Milton CAT Newport Preservation Society Newport Hyatt Regency at Goat island Newton Marriott Hotel Northeast Traffic Control Services, Inc.

NPL Construction Co. Ocean State Oil Daniel O’Connell’s Sons, Inc. Robert B. Our Co., Inc. Our Outhouses, Inc. Park Plaza Hotel E. H. Perkins Const. Co., Inc. Podgurski Corp.

J. A. Polito & Sons Co., Inc. E. J. Prescott, Inc. H. R. Prescott, Inc. RJV Construction Corp.

RoadSafe Traffic Systems, Inc. Glenn Roy (Northeast Traffic Control Services, Inc.) SB General Contracting, Inc. Schmidt Equipment, Inc. Scituate Concrete Pipe Corp.

Scituate Concrete Products Corp.

Scrap-It, Inc./Minichiello Bros., Inc.

Carol Smith Social Mavens Southern Redi-Mix Corporation Starkweather & Shepley Insurance Brokerage, Inc. The Stiles Company, Inc. Sylvan Learning Center of Woburn Systems Support Corp.

TD Garden Taylor Oil Company Albert J. Tonry & Co., Inc. Triumph Modular Inc.

Umbro & Sons Construction Corp.

The Vellano Corporation WHDH-TV Channel 7 Water Works Supply Corp.

WES Construction Corp.

Weston & Sampson Engineers, Inc. J. F. White Contracting Co. R. H. White Construction Co., Inc. White Cap Construction Supply C. N. Wood Company, Inc. Woodco Machinery, Inc. R. Zoppo Corp.

38

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Time for new equipment?

C.N. Wood Has You Covered Reliable Equipment Call the location nearest you today!

• • • •

Dozers Excavators Wheel Loaders Articulated Trucks

• Backhoe Loaders • Graders • Skid Steer Loaders and more

Responsive Service • Parts available within 24 hours • Service on the job site or in C.N. Wood’s state-of-the-art facilities

Komatsu Distributor Massachusetts Woburn 781-935-1919

Avon 508-584-8484

Whately 413-665-7009

Rhode Island Johnston 401-942-9191

www.cn-wood.com

40

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Scholarship Applications Now Available

UCANE To Award Twelve $2,000 Scholarships WHO MAY APPLY? Any high school student who is the son or daughter of a UCANE member or an employee of a member who will be enrolling full time in an accredited four year academic institution for the year beginning in September 2015.

IMPORTANT: In the event the applicant receives a full four year scholarship from the college of his/her choice, the UCANE scholarship will be awarded to another applicant.

HOW WILL THE APPLICATION BE JUDGED? This year there will be twelve $2,000 scholarships awarded. Selections for the awards will be based upon: 1. scholastic achievement 2. interest and effort in preparing for your vocation 3. extra curricula activities at and away from school, including community service 4. personal recommendations 5. personal essay 6. financial need

HOW WILL THE CONFIDENTIALITY OF THE APPLICATION BE PROTECTED? Each applicant is assigned a number. When completed, page 1 of the application with the name of the applicant must be detached and sealed in the accompanying envelope. The applicants name must not appear on pages 2-4 of the application or attached transcripts and recommendations. After the winning applications have been selected, the envelopes with corresponding numbers will be opened to identify the award recipient.

WHAT MUST ACCOMPANY THE APPLICATION? 1. A transcript of high school grades through the latest period prior to April 15 must accompany application.

2. A letter of recommendation from the principal or faculty advisor. The letter should include the number of students in the class and the standing of the applicant or equivalent must accompany application.

3. Additional recommendations from people familiar with the applicant’s ability and character, and from responsible members of the community, (optional but recommended).

4. Please indicate the UCANE company by which you or your parent is employed.

NOTE: The name of the applicant must be deleted entirely from pages 2 through 4 and all accompanying correspondence, and your application number must be inserted in its place.

WHEN MUST I APPLY? All applications must be submitted no later than April 15, 2015.

FOR AN APPLICATION, PLEASE SEND YOUR WRITTEN REQUEST TO: Utility Contractors’ Association of New England, Inc. 300 Congress Street • Suite 101 • Quincy, MA 02169 Tel: 617.471.9955 • Fax: 617.471.8939 • Email: aklayman@ ucane.com

DECEMBER, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

41

When you are known for providing Professional Insurance & Surety solutions to the construction industry...

...you better protect your biggest asset.

Contact our Starkweather & Shepley’s Construction Risk Specialists Today!

Peter A. Jacavone III, Rob Barresi & Charlie Byrne

(401) 435.3600 | www.StarShep.com

42

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

F

Joe Welch Recipient of Prestigious Award at NBM Gala

ormer UCANE Municipal Liaison Joe Welch was recognized by the Norfolk/Bristol/Middlesex (NBM) Highway Association at their recent gala, held at the Four Points by Sheraton Hotel, Norwood, MA for his 40+ year career with the Town of Norwood, and his dedicated efforts in improving the image and effectiveness of public works departments throughout Massachusetts.

In presenting NBM’s highest honor, the 2014 Francis Granger Award, which is presented annually to the most deserving highway official who has rendered outstanding service to the Association, Tom Collins told the gathering, “That while it is sometimes hard to get by his gruff, sharp exterior, Joe Welch, as compared to the most interesting man in the Dos Equis commercial, really is the most interesting man in the world. I am proud to call this gentleman my comrade and personal friend.”

After graduating with an associate’s degree in Civil Engineering, Joe’s career in public works started in 1967 when he joined the Norwood Public Works Department as a grade 2 engineer performing a multitude of tasks including surveying, drafting, planning, and contract work. Within a few years he was promoted to Superintendent of the Cemetery Department with responsibility for maintenance, expansions, and improvements. In 1974 he was again promoted to Assistant Superintendent of Public Works. While in this position he helped create the Parks Department.

In 1986 Joe was appointed Director of Norwood’s Public Works Department and his responsibilities expanded to include all phases of parks, play-

grounds, cemeteries, highways, sewer, water, drains, snow plowing/removal projects, and budget preparation and planning.

Also during this later phase of his career, Joe became active in NBM, being elected to their Board of Directors in 1998. Except for a break between 2006-2008 when he served as NBM president, he remains on the Board to this day.

Joe’s service to NBM and its members knows no bounds. He has served as chairman of just about every committee, including the Annual Awards Gala at which he received his award in front of more than 300 colleagues and friends.

Joe, known as a man of few words, thanked everyone for the award. The standing ovation, smiles, and handshakes from well wishers really told the whole story. Truth be told, Joe Welch was one of the most deserving candidates to ever receive this coveted award. n

P.A. Landers, Inc. The Smart Choice For All Your Site Development Needs

“WE DELIVER QUALITY BY THE TRUCKLOAD” 351 Winter Street • Hanover, MA 02339 Route 130 • Sandwich, MA 02563 800.660.6404 • 781.826.8818 800.834.4333 • 508.477.8818 Fax: 781.829.8934 Fax: 508.477.8818 www.palanders.com

DECEMBER, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

43

SP_UCANE AD_Dec2013_Layout 1 11/19/13 11:03 AM Page 1

The Right Person for the Job...

It’s Simple... Yet not so Simple.

Ink on paper.

Smith Print has perfected the Art of printing and the Art of customer service.

When you want to keep it simple and not compromise the quality of your project, face to face communication leads the way to satisfying results.

You use licensed electricians. You use certified steelworkers.

Use a proven expert for your DOT Compliance Programs.

Foley Carrier Services are CSA experts. Our wide range of services include: • • •

Drug and Alcohol Testing Background Checks Driver Files

• • • •

Hours of Service Audit Support Expert Consulting And More!

Don’t be fooled by on-line, easy-to-order promises. We listen, then create, right here on the South Shore, with people who live and work here too.

Smith Print, Inc. 781.878.5555

1-800-253-5506

90 Longwater Drive, Norwell, MA 02061

www.FoleyServices.com

www.smithprint.com

Dedicated to exceeding your expectations.

Palmer Paving is an industry leading heavy highway civil engineering construction firm, serving both public and private sector clients. With our own HMA and aggregate processing plants, we are fully integrated as a materials producer and roadway contractor for projects of any size.

We welcome your inquiries and look forward to helping you solve your next site, road construction or infrastructure challenge.

Palmer Paving Corporation, Inc 25 Blanchard Street, Palmer, MA 01069 413-283-8354

44

00

23 Arthur Street Easthampton, MA 01027 413-527-6900

www.palmerpaving.com 43 Old Coldbrook Road Barre, MA 01005 413-283-8354

1000 Page Boulevard Springfield, MA 01104 413-737-4020

“BUY FROM ADVERTISERS IN CONSTRUCTION OUTLOOK” 2014 2014 “BUY THE FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” DECEMBER, SEPTEMBER,

O

New Rules Further Limit Local Water Withdrawals

n October 21 the Massachusetts Water Resources Commission approved significant revisions to state Water Management Act regulations that incorporate new methodology for calculating a river basin’s “safe yield,” new biological categorizations, new streamflow criteria for water withdrawals, and new permit review categories.

The changes were based on the Patrick administration’s Sustainable Water Management Initiative, which is intended to limit water withdrawals and increase volume in rivers and streams.

Under the new regulations, which become effective upon publication in the Massachusetts Register, communities seeking an increase in water withdrawals over their historic baseline will be required to mitigate the volume of the increase. Applicants seeking to withdraw from an impaired basin or a coldwater fish resource will be required to minimize the impact of the withdrawal.

Five years ago, the Executive Office of Energy and Environmental Affairs convened a stakeholder committee to advise state agencies on the development of new limits on water use. Energy and Environmental Affairs received more than 160 comments from across Massachusetts on the proposed regulations. The MMA and water suppliers expressed concerns that proposed regulations placed too much emphasis on how water withdrawals would affect fish populations and overlook the impact of impervious surfaces, dams and pollutants on aquatic habitats.

The MMA had also requested a cost-benefit analysis of the regulations, to allow communities to determine the most cost-effective approach to meeting the requirements. The MMA argued that the regulations would constitute an unfunded mandate borne almost entirely by ratepayers and taxpayers.

Cities and towns already lack adequate resources to maintain their existing water infrastructure, the

DECEMBER, 2014

MMA pointed out. By limiting water withdrawals, the proposed regulations would reduce revenue and impose additional costs on water suppliers.

In response to these concerns, the Legislature included a provision in the environmental bond act enacted this past summer giving the Legislature 30 days to review the regulations before promulgation.

The regulations were submitted to the Legislature on October 9, but the Water Resources Commission approved the regulations, with minimal changes, by an 8-3 vote just 12 days later, despite written requests from legislators asking for adequate time to review the regulations before the commission voted.

On October 22, Senator Richard Moore, who drafted the language in the bond bill wrote to the commission, “I am disappointed by the commission’s decision to move forward with a vote on this matter without providing the Legislature or local communities with the necessary time to carefully review the drafted regulations, which will have a profound effect on water management practices for years to come.”

Written by MMA Senior Legislative Analyst Tom Philbin. continued on page 46

Crushed Stone & State Specified Dense Graded Base Manufacturer & Installer of Bituminous Concrete Products:

M.B.S. Construction Services/Paving Holden Trap Rock Co. 2077 N. Main Street (Route 122 A) Holden, MA 01520 Tel: 508-829-5353 Fax: 508-829-9346

Berlin Stone Co. 332 Sawyer Hill Rd. (off Rt. 62 & 495) Berlin, MA 01503 Tel: 978-838-9999 Fax: 978-838-9916

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

45

MMA News continued from page 45

T

EPA Solicits Feedback on Draft MS4 Permit

he U.S. Environmental Protection Agency on September 30 issued a draft general permit for stormwater discharges from small municipal separate storm sewer systems (MS4) in Massachusetts.

The National Pollutant Discharge Elimination System (NPDES) combines two previous draft permits into one general permit for all eligible MS4s in Massachusetts. The EPA estimates the cost for communities to meet the new requirements will be between $78,000 and $829,000 per year.

The federal Clean Water Act requires that the MS4 permit be re-evaluated every five years to ensure that it continues to protect the environment. The previous permit was issued in 2003.

Municipal storm sewer systems collect rain and snowmelt from streets and direct the flow to water bodies. The new MS4 permits would require communities to institute more advanced programs to reduce pollutants that are discharged from municipal storm drainage systems to rivers, lakes, and bays.

The proposed permit includes “best management practices,” such as removing illegal sewage connections to storm drains, street sweeping, public education, and steps to expand the filtration of stormwater rather than diverting it into sewer systems.

The MMA and municipal officials have raised concerns about the cost of the new regulations at a time when municipal budgets are very tight.

In written testimony to the EPA, the MMA urged the agency “to amend [its] approach to incorporate goals that are more realistically attainable within the financial constraints of the current economic climate, or wait until adequate federal funding is available to ensure that these requirements do not translate into a harmful unfunded mandate on cities, towns and taxpayers.”

The EPA did make some changes requested by the MMA, including additional time to meet the requirements, reducing frequency of required street sweeping, eliminating the requirement to sweep sidewalks, allowing the use of field test kits for monitoring in place of the more expensive lab tests, and allowing communities to determine for themselves the most effective schedule for catchbasin cleaning.

The new draft permit includes the same six minimum control measures as the 2003 MS4 general permit, plus provisions to protect water quality.

The previous draft permits, issued in 2010, included the following requirements: • Enhanced illicit discharge detection and elimination to identify, isolate, and remove sanitary and other wastes from storm water systems • Water quality monitoring of stormwater discharges • Encouragement of low-impact development and green infrastructure techniques • Implementation of approved total maximum daily load waste load allocations The EPA held a public hearing on November 19 at 1 p.m. in the Community Room at the Leominster Public Library. The EPA held a series of five public information sessions across the state last month to discuss the draft general permit.

Comments must be received by December 29.

For more information or to submit written comments, visit http://www.epa.gov/region1/npdes/stormwater/MS4_MA.html.

Written by MMA Senior Legislative Analyst Tom Philbin.

Darmody, Merlino & Co., LLP CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

Serving The Construction Industry Since 1938 75 Federal Street, Boston, Massachusetts 02110-1997 OFFICE 617.426.7300 • FAX 617.426.2245 WWW.DARMODYMERLINO.COM

46

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Eastern States Insurance Agency, Inc. Receives ‘Distinguished Partner’ Award

Acadia Insurance recently commemorated Waltham-based Eastern States Insurance Agency, Inc. for writing more than $5 million in premium with the company. To celebrate this milestone, Acadia officials presented a handcrafted, artisan grandfather clock to the agency principals and staff.

Standing left to right are Newton Johnson, President, Eastern States Insurance, Sharon Pontes, Acadia Regional Vice President and Massachusetts Branch Manager, Oscar Johnson, Executive Vice President, Eastern States Insurance and Doug Nelson, President, Acadia Insurance.

LORUSSO CORPORATION 3 Belcher Street, Plainville, MA 02762 Tel: 508-695-3252 Fax: 508-699-2387 Email: sales@lorussocorp.com QUARRY & RECYCLYNG 40 Cross Street • Plainville, MA 125 Tiffany Street • Attleboro, MA ASPHALT PLANT 635 Pleasant Street Norwood, MA

PRODUCTS • Bituminous Concrete • Sand & Gravel • Crushed Stone • Screened Loam & Compost • Recycled Aggregate Products • Rip Rap & Armor Stone SERVICES • Paving & Roadway Construction • Utility Trench Preparation • Utility Trench Paving • Organic Material Recycling • Construction Material Recycling • Roll Off Containers

www.lorussocorp.com

DECEMBER, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

47

read custom soils 888-475-5526

www.readcustomsoils.com CU Structural SoilsTM roofliteTMcertified media Rain Garden Soils Sand-based Soils Fiber-reinforced Soils Stabilized Paths

• New Units with Hand Sanitizers • Specializing in Units for Construction Sites • Handicapped Units Available

Meredith Allen Our Robert B. Our, III P. O. Box 115 Centerville, MA 02632 www.ourouthouses.com

Don’t dig yourself into trouble...

The Perfect Excavation: • Pre-mark the location of intended excavation using white stakes, paint or flags.

• In MA, ME, NH and RI, notify Dig Safe® at least 72 business hours in advance.

• In Vermont, notify Dig Safe® at least 48 business hours in advance.

• Notify non-member facility owners.

• Maintain the marks placed by underground facility owners.

Call

• Use caution and dig by hand when working within 18” of a marked facility.

• If a line is damaged, do not backfill.

Notify the affected utility company immediately if the facility, its protective coating, or a tracer wire is damaged.

• Call 911 if the damaged facility poses a risk to public safety.

• Know your state’s excavation requirements.

Go to digsafe.com for educational material and current laws.

before you dig. digsafe.com

Call Dig Safe®. It’s Smart, It’s Free, and It’s the Law.

48

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK” DECEMBER, 2014 56 “BUY FROM THE ADVERTISERS IN CONSTRUCTIO

UCANE’s Fourth Annual Appreciation Night Trade Show Prior to our March Annual Forecast Dinner Meeting

Trade Show booths offered at NO COST to Construction Outlook Magazine Advertisers only.

If you are not currently advertising in Construction Outlook, we hope you will consider placing an ad. Our monthly magazine showcases your products and services to contractors who use them. The Trade Show is a great opportunity to meet with UCANE members and guests face-to-face.

For more information call Suzanne at the UCANE office for advertising rates.

UCANE Presents OSHA Mandated Signal Person and Riggers Class Conducted by Excellence in Safety Inc.

O

n November 6, 2014 UCANE hosted an 8-hour class for contractor employees who have responsibilities including signaling for hoisting operations and/or rigging of loads to be hoisted.

OSHA requires that those employees receive training by a qualified evaluator. Dick Hughes, president of UCANE member firm Excellence in Safety (EIS), performed the classroom training for 14 attendees, all who passed written tests and received certificates to comply with OSHA’s requirement for proof of training. Photocopies of the certificates are maintained by both EIS and UCANE. Signal person training included proper use of the ANSI hand signals; review of crane limitations, clearances required around power lines, and proper voice signals. Signal person requirements per OSHA 1926.1419 to 1926.41 were covered in full.

Rigging training included proper rigging techniques; methods for determining weight of the load; sling and wire rope inspections, and proper riggers personal protective equipment.

Safety is a top priority with UCANE members.

Our Association is proud to assist with providing current safety information and training venues whenever there is a need. We thank Dick Hughes for conducting this informative and important training class. UCANE will be scheduling additional seminars after the first of the year. n

Custom and Standard Concrete Products...

Our Specialty!

United Concrete Products, Inc.

www.unitedconcrete.com

173 Church St. Yalesville, CT 06492

Offering a full range of products: Manholes, Catch Basins, Septic Tanks, Leaching Chambers, Dry Wells, Distribution Boxes, Pump Chambers, Grease Traps, PreTreatment Tanks, Utility Vaults, Meter Pits, Yard Drains, Box Culverts, End-Walls, Wing Walls, Curbs, Water Quality Structures, Prefab. Pump Stations, Storage Buildings, Dugouts, Concrete Barriers, Cable Concrete, Retaining Walls, Restroom Buildings, Telecommunication Shelters, Prestress Bridges, National Grid, Traffic Control Structures and many more.

Toll Free: (800) 234-3119 Fax: (203) 265-4941

Jason Lindsey

jlindsey@unitedconcrete.com Cell 203-464-7667 See our full line of products at:

50

www.unitedconcrete.com

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

FactSheet Subpart CC – Cranes and Derricks in Construction: Signal Person Qualification This fact sheet describes the signal person qualification requirements of subpart CC – Cranes and Derricks in Construction, as specified in 29 CFR 1926.1419 and 1926.1428. Other requirements related to signal persons can be found at 29 CFR 1926.1404, 1926.1430, 1926.1431, and 1926.1441. These provisions are effective November 8, 2010.

When is a signal person required?

A signal person is required when: • The point of operation is not in full view of the operator (1926.1419(a)).

• The operator’s view is obstructed in the direction the equipment is traveling.

• Either the operator or the person handling the load determines that a signal person is needed because of site-specific safety concerns.

What does a signal person need to know?

The signal person is considered qualified if he or she: • Knows and understands the type of signals used at the worksite.

• Is competent in using these signals.

• Understands the operations and limitations of the equipment, including the crane dynamics involved in swinging, raising, lowering and stopping loads and in boom deflection from hoisting loads.

• Knows and understands the relevant signal person qualification requirements specified in subpart CC (1926.1419-1926.1422; 1926.1428).

• Passes an oral or written test and a practical test.

How does a signal person become qualified?

1. Third party qualified evaluator. The signal person has documentation from a third party qualified evaluator showing that he or she meets the qualification requirements.

2. Employer’s qualified evaluator (not a third party). The employer’s qualified evaluator assesses the individual, determines the individual meets the qualification requirements, and provides documentation of that determination.

This assessment may not be relied on by other employers.

Refer to 1926.1401 for definitions of qualified evaluators.

How will an employer show that a signal person is appropriately qualified?

Employers must make the documentation of the signal person’s qualifications available at the worksite, either in paper form or electronically.

The documentation must specify each type of signaling (e.g., hand signals, radio signals, etc.) for which the signal person is qualified under the requirements of the standard.

When are signal persons required to be qualified?

The qualification requirements for signal persons go into effect on November 8, 2010.

Employers must use one of the following options to ensure that a signal person is qualified (see 1926.1428).

This is one in a series of informational fact sheets highlighting OSHA programs, policies or standards. It does not impose any new compliance requirements. For a comprehensive list of compliance requirements of OSHA standards or regulations, refer to Title 29 of the Code of Federal Regulations. This information will be made available to sensory impaired individuals upon request.

The voice phone is (202) 693-1999; teletypewriter (TTY) number: (877) 889-5627.

For more complete information:

U.S. Department of Labor

www.osha.gov (800) 321-OSHA DOC 10/2010

DECEMBER, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

51

We earn your business every day...

________________________________________________________________ Quality Products and Dependable Service for Over 50 Years Tankwagon & Trailer • Direct delivery to bulk tanks • Fleet and generator fueling • 100 to 10,000 gallon deliveries

Transportation • Company-owned fleet with professional drivers • 24/7/365 fuel transport service

Supply

Emergencies

• Full-time safety director • Hazmat trained and certified drivers • Professional site and fill inspections

• Full line of diesel, automotive and industrial lubricants, including synthetics and biodegradables • Bulk and packaged lubricant deliveries throughout New England • Oil testing and bulk tank programs

Diesel Exhaust Fluid • DEF available in single-use containers, drums, totes and bulk • We can provide the equipment you need to fit your fleet requirements

• Fuel futures, supply procurement, and risk management • Industry and market intelligence • Contracted supply positions along the east coast for uninterrupted service during local or regional outages

Safety & Compliance

Lubricants

• 24/7/365 emergency fueling • Emergency generator programs • On-site fueling

Tank Monitoring • Remote monitoring ensures your tank has ample fuel for uninterrupted service

Fleet Cards • Fleet fueling card offers advanced fuel controls at over 40,000 sites • 24/7 access to product and online account • Tailor a fueling program to meet your fleet’s requirements

THE EMISSIONS EXPERTS 284 EASTERN AVE. • CHELSEA, MA 02150

1-800-289-2875

Renewables

WWW.BURKEOIL. COM

• Biodiesel, bioheat and E85 ethanol • First in MA with biofuels at the pump

Mabey Inc. – A leader in engineered solutions for the construction industry since 1989 • Trench Shoring

Underground tanks and utilities, sewer systems, lift station construction, and more.

• Propping

Vertical shoring from 45 - 490 kips.

• Bridging

Primary and secondary roadways for emergency, temporary, permanent and pedestrian use.

• Temporary Roadways

Mabey Mats help get your crew and equipment working on-site safely.

• Expertise

Professional Engineer (P.E.) Certification in 21 states; Custom engineered plans for routine or challenging jobs; Safe, effective, time-saving plans; On-site technical support.

See our case studies at mabey.com/cs

52

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

800-95-mabey

DECEMBER, 2014

John E. Merchant, CPA

Cullen, Murphy & Co., P.C.

IN THIS ISSUE: • New Regulations Bolster Longevity Annuities • Global Funds Versus International Funds • Be Wary of Accumulated Assets

Smart Tax, Business & Planning Idea

New Regulations Bolster Lo Annuities Regulations Bolster

New Longevity Annuities

D

eferred income annuities (DIAs) recently have become popular. New regulations from the U.S. Treasury Department may increase their appeal, opening the way for so-called “longevity” annuities inside IRAs and employer retirement plans.

Later Rather Than Sooner

With a DIA, you pay an insurance company now in return for a predetermined amount of cash flow in the future.

Example 1: Grace Palmer is age 55, planning to retire at 65. She buys an income annuity now for $100,000. Depending on the specific features Grace requests, if she starts to receive payments immediately, she might get around $400 a month ($4,800 a year) as long as she lives.

Instead, Grace agrees to wait until she retires at 65 to start payments. In return for giving up her money for 10 years, with no return, Grace might get lifelong annual payouts of $800 a month. (Exact amounts will depend on the contract terms and the annuity issuer.)

Even Later Certain DIAs are known as longevity annuities.

They begin paying out late in life, so they appeal to people who are concerned about running short of money if they live into their late 80s or 90s or beyond.

Example 2: Instead of starting her DIA payouts at 65, Grace asks for them to begin at 75 or later. Such a delay could increase her payouts to $2,000 a month or more, as her remaining life expectancy would be

DECEMBER, 2014

around $400 a long as she live Instead, Gr retires at 65 to for giving up h with no return annual payouts amounts will d terms and the

Even later

Certain DIAs annuities. They limited. Grace enters into this arrangement to assure annuities (DIAs) life, so they app herselfDeferred that she’llincome have substantial cash flow if she lives haveage. become popular. New are concerned until anrecently advanced regulations from the U.S. Treasury money if they Solving the Distribution Department may increase theirDilemma appeal, 90s or beyond Until recently, longevity annuities were imprac-Example 2: opening thesuch way for so-called “longevity” tical forannuities retirement accounts required minimum inside IRAsbecause and employer DIA payouts a distributions (RMDs) typically start after age 701⁄2. to Seretirement plans. begin at 75 niors would have to take RMDs on the annuity value even increase her pa thoughLater no cashrather would be coming from the annuity. or more, as her than sooner With a 3: DIA, you payHenry an insurance would Example Suppose Adams had bought a be limit company in his return a to longevity annuitynow inside IRA for to begin payments at arrangement age of cash flow inin his IRA, have substantia 80. At predetermined age 701⁄2, whenamount Henry has $500,000 the future. until an advanc the annuity issuer values the contract at $100,000. Under 1: Grace age RMDs based prior rules,Example Henry would havePalmer had toistake Solving the 55, planning retire at 65.he She buys on a $500,000 valuetoeven though had only $400,000 dilemma an available. income annuity forhave $100,000. currently Henry now would been required to Until recently, Depending on the features withdraw (and pay tax on) specific a relatively large amount, even were impractic Graceneed requests, if money she starts receive if he doesn’t all the he’lltowithdraw. because requir payments immediately, she might get This unfavorable tax treatment would continue, year after year, as long as Henry waited for his longevity annuity. Thus, longevity annuities were not attractive continued on page 54

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

53

Financial Management continued from page 53

Trusted Advice Rules for QLACs • No more than 25% of an individual’s total IRA money can be invested in qualified longevity contracts (QLACs).

• For this purpose, SEP IRAs and SIMPLE IRAs are included. Roth IRAs don’t count because there is no reason to hold a QLAC in a Roth IRA, where the owner never has required minimum distributions.

• The 25% limit also applies to each employer plan.

• Counting all QLACs in all plans, an investor cannot invest more than $125,000. That ceiling will increase with inflation.

• QLAC payouts must begin no later than age 85, although they can begin earlier.

for retirement accounts and few people bought them in their IRA. This situation is about to change. In July 2014, the Treasury Department issued final regulations on qualified longevity annuity contracts (QLACs). If annuities meet certain conditions, they will be considered QLACs. (See the Trusted Advice column “Rules for QLACs.”) That way, the account value won’t count for RMD calculations.

Pros and Cons Some insurance companies are working on QLACs that are expected to appear in 2015. QLACs might appeal to seniors who are likely to live well beyond normal life expectancy and who are concerned about running short of money. In addition, individuals who would like to trim their RMDs and, thus, leave more to heirs, may consider buying QLACs. The regulations permit QLACs to have a return of premium feature, which would pay beneficiaries the amount invested yet not paid out in annuity payments by the time the annuity purchaser dies.

On the downside, QLACs will not be permitted to have any liquidity features for the buyer. If a taxpayer invests $100,000 in a QLAC, all she can get in return will be her annuity payments. continued on page 55

Dave Pateuk / Owner Email: dave@northeastshoring.com Website: www.northeastshoring.com

• • • •

54

Any Size Trench Box; Standard & Custom Fully Stocked Sales & Rental Fleet The Best Source for Road Plate Rentals Two Trucks for FAST RELIABLE DELIVERY!

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Financial Management continued from page 54

A

Global Funds Versus International Funds

s of this writing, financial markets have been very volatile. Even so, the Standard & Poor's 500 Index, a benchmark for the U.S. stock market, has gained over 70% in the past five years. A common measure of foreign stocks, the MSCI Europe, Australasia, and the Far East (EAFE) Index, has gained less than 10% for that period. Thus, U.S. stocks generally have gained much more than their foreign counterparts since the financial crisis of 2008–2009.

Consequently, some observers believe that foreign stocks offer better value than domestic issues today. You may wish to hold a portion of your investment portfolio in non-U.S. equities. Your strategy might call for investing through a stock fund for broad diversification and professional asset management.

Defining Global and International

When investing in foreign stocks, your investment choices include global and international funds.

Although the terms might sound similar, they refer to two different types of stock funds.

• Global funds, also known as world funds, typically invest in the shares of any company in the world. That includes stocks of U.S. corporations.

• International funds, sometimes called foreign funds, generally invest only in companies based outside of the United States.

An international fund, for instance, might invest in Germany’s Volkswagen, Korea’s Samsung, and Royal Dutch Shell, while a global fund might hold Volkswagen, Samsung, and the U.S. company ExxonMobil. Seeing “international” or “global” in a fund’s name usually will indicate how it invests, but you should check its holdings before you invest, so you’ll know which path you’ll be following.

The Case for Going Global Investing in a global fund can be a one-stop solution to your quest for stock market exposure. You’ll participate in the U.S. market as well as in foreign equities with a single, all-purpose fund.

Moreover, the managers of global funds typically are unconstrained. They can invest in the companies they like best, regardless of where a given company happens to be based. Why exclude an extremely promising stock just because the corporation happens to have a U.S. headquarters?

Investing in What They Know Alternatively, some observers point out that the world is a big place, perhaps too big for one fund manager (or one team of co-managers) to cover adequately. A fund manager who concentrates solely on U.S. stocks may be more likely to find gems here than a manager whose stock scan extends to Australia and Zimbabwe.

Similarly, a fund manager who doesn’t have to follow the huge U.S. market might be more able to uncovcontinued on page 57

GENERAL CONTRACTOR Manufacturer and Installer of Bituminous Concrete Products 100 Wales Avenue-Rear Avon, MA 02322 Office: 508-583-2029 Plant: 508-587-6953

DECEMBER, 2014

226 Nicks Rock Road Plymouth, MA 02360 Scale House: 508-732-9148 Asphalt Plant: 508-732-9140

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

55

L. GUERINI GROUP, INC. SINCE 1917

Material Placement Specialists

CONSULTING

GEOD CONSULTING Engineering • Transportation • Surveying GEODLand CONSULTING Professional Surveyors & Engineers

Construction Professional LandSurveying SurveyorsSpecialists & Engineers Engineering/CADD Construction SurveyingServices Specialists Expands Services to Services Include GPS Consultants Engineering/CADD Consultants SubsurfaceGPS Utility Mapping Providing Surveying, Engineering & CADD Services to construction companies in the New & England Providing Surveying, Engineering CADDarea.

Services to construction companies in the New England area.

Experienced in construction layout of highways, utilities, schools, bridges and site development.

Experienced in construction layout of highways, utilities,

CONCRETE PUMPING EQUIPMENT “TELEBELT” MOBILE CONVEYORS STONE SLINGER SERVICE

schools, bridges and site development.

Pumps Up To 200 yds/hr • Booms Up To 142’ Reach Line Pumps • Grout Pumps Material Placement To 106’

34 Topalian Street PO Box 260187 Boston, MA 02126

24 Ray Avenue 24 Ray Avenue • Burlington, MA 01803 Burlington, MA 01803 24 Ray• Avenue Tel: 781.273.3434 Fax: 781.273.3430 Phone 781-273-3434 Burlington, MA 01803 www.geodcorp.com Fax: 781-273-3430 Phone 781-273-3434 Fax: 781-273-3430

(617) 296-0290

www.guerini.com plainville, Ma (774)847-9046

Cape Cod, Ma (508)759-9990

Boston, Ma (617)269-4800

auBurn, Ma (508)832-3404

WoBurn, Ma (781)376-9636

Cranston, ri (401)461-8020

For all your construction supply needs l Soil Stabilization l Slope Protection & Erosion Control l Gabions l Pavement Maintenance

l Forming & Shoring l Rebar l Road & Bridge l Concrete Repair & Restoration

www.ahharris.com

56

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Financial Management continued from page 55 er winners in Europe or Japan. An investor who follows this line of reasoning may prefer to invest in one or more funds focusing on the U.S. market as well as one or       more funds that limit their selections to foreign stocks.     Source for Quality Lu

Source There is no right or wrong answer to the global

Sourcefor forQuality QualityLu

Lu

vs.-international question. There are some global

Source for Quality Lu

Source for Quality Lu

    funds with excellent records and some that have not   served investors well; the same can be said for in-     ternational funds. The key is to understand the dif-    ference between these modes of investing in foreign   stocks, and to make an informed decision about    where your dollars will be going.  continued on page 58  New Â

st  Source  Elite  Marketer  of  st New Â

 Source  Elite  Marketer  of  New Â

st stst  Source  Elite  Marketer  of  Chevron  Quality  Lubricants  New Â

 Source  Elite  Marketer  of  Chevron  Quality  Lubricants  New Â

 Source  Elite  Marketer  of  Chevron  Quality  Lubricants  Chevron  Quality  Lubricants  Complete  line  of  lubricants  for  all  industries:                 Chevron  Quality  Lubricants  Complete  line  of  lubricants  for  all  industries:                 Off  Highway  and  Construction,  On  Highway  Fleets,  Complete  line  of  lubricants  for  all  industries:                 Complete  line  of  lubricants  for  all  industries:                 Off  Highway  and  Construction,  On  Highway  Fleets,  Complete  line  of  lubricants  for  all  industries:                 Off  Highway  and  Construction,  On  Highway  Fleets,  Off  Highway  and  Construction,  On  Highway  Fleets,  Automotive,  Marine,  Railroad  and  Industrial  Plants  Off  Highway  and  Construction,  On  Highway  Fleets,  Automotive,  Marine,  Railroad  and  Industrial  Plants  Automotive,  Marine,  Railroad  and  Industrial  Plants  Automotive,  Marine,  Railroad  and  Industrial  Plants  On  and  Off  road  diesel  fuel  ,  propane  and  heating  oil  Automotive,  Marine,  Railroad  and  Industrial  Plants  On  and  Off  road  diesel  fuel  ,  propane  and  heating  oil  On  and  Off  road  diesel  fuel  ,  propane  and  heating  oil  On  and  Off  road  diesel  fuel  ,  propane  and  heating  oil  available  in  select  markets  of  our  service  area  On  and  Off  road  diesel  fuel  ,  propane  and  heating  oil  hile U.S. stocks have outperformed foreign available  in  select  markets  of  our  service  area  available  in  select  markets  of  our  service  area  available  in  select  markets  of  our  service  area  Experienced  Sales  and  Customer  Service  personnel  available  in  select  markets  of  our  service  area  stocks in recent years, some types of foreign Experienced  Sales  and  Customer  Service  personnel  Experienced  Sales  and  Customer  Service  personnel  Experienced  Sales  and  Customer  Service  personnel  ready  to  help  you  with  your  lubricant  needs.  Experienced  Sales  and  Customer  Service  personnel  bonds have held up well. Taking a slightly longer ready  to  help  you  with  your  lubricant  needs.  ready  to  help  you  with  your  lubricant  needs.  ready  to  help  you  with  your  lubricant  needs. Â

The Surge in Emerging Markets Bonds

W

view, funds holding bonds from emerging markets have topped all of Morningstar’s bond fund categories for the 10 years through September 2014, with average annualized returns around 7.6%. By contrast, the average return for all taxable bond fund categories was about 4.5%.

Why have emerging markets bonds done so well? For one reason, they have relatively high yields. The stocks in the J.P. Morgan Emerging Markets Bond Index have a current yield over 5%, which can be appealing in today’s low-yield world.

In addition, emerging markets generally have faster economic growth than the U.S. and the developed markets of Western Europe. As their economies expand, emerging nations likely will become more creditworthy, making their bonds more valuable. These trends, which have sparked gains in emerging markets bonds during the last decade, may continue in the future.

Nevertheless, bonds issued in places such as Brazil, Russia, India and China can be risky, so prices may fluctuate. If you are interested in a small portfolio allocation to this asset class, consult with your investment advisor. You might consider a diversified emerging markets bond fund to spread the risks. Funds in this category may be less volatile if they primarily hold government rather than company bonds.

DECEMBER, 2014

800-554-4557 ready  to  help  you  with  your  lubricant  needs.  800-554-4557 800-554-4557 800-554-4557 www.oceanstateoil.com 800-554-4557 www.oceanstateoil.com www.oceanstateoil.com www.oceanstateoil.com www.oceanstateoil.com

SAND & STONE CORP. 192 Plain St. North Attleboro, MA 02760 (508) 699-2911 www.borocorp.com

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK�

57

Financial Management continued from page 57

Be Wary of Accumulated Assets continued from page 3

O

triggered, Craig decides to keep the

wners money of regular C corporations inside CT Corp. face double taxation. The company’s profits subject to the corpoCash are crunch However, CT Corp. of might run intoprofits rate income tax. If some those a tax problem: the accumulated are paid to the owner and other shareearnings tax (AET). Retained holders, as nondeductible dividends, the earnings over $250,000 are subject same dollars will be taxed to this tax ($150,000 foragain, personal on the recipients’ personal tax returns. service corporations, such as professional practices).

Thus,have if CT been Double taxation might not Corp. had $200,000 in retained a major concern when highest earnings from prior the years, this year’s tax Example 1: Craig Taylor 100% of rate on qualified dividends was only as buying expensive equipment or $400,000 makes the total $600,000, 15%, What’sowns more, court decisions CT The company’s profitsthethis year as it had been mostover of the this century. expanding intoCorp. a new territory. whichfor is $350,000 $250,000 have approved concept that C limit. CTlegislation Corp. would owe tax on corporations can cite working are $400,000, on which CT Corp. pays in-capital However, recent boosted the $350,000 overage: the Solid proof a reason for accumulating come tax. Rather thanas pay himself a divi-earnings dividend taxthe rate to 20% for$70,000, someattaxpayIn order to retain earnings over current 20% AET rate. over $250,000. Our office can help dend, which would be taxed at an effecers; high-income taxpayers also may owe $250,000, yet avoid the AET, a In practice, the AET is not a you determine an acceptable level of tivemust rate of 25% scenario, counting the 3.8% Medicare surtax as well as some corporation be able to showin thisworking certainty. The IRS might investigate capital for your company, allreally the taxes thatmight would bepermissible trig- level indirect taxes onCTdividends they receive. that there wasvarious a plan in place to which when Corp. reports retained raise its use the money, and that the reasons earnings over $250,000 on its of accumulated earnings. gered, Craig decides to keep the money Therefore, business owners may prefer for the retention beyond tax corporate in income return, but it’srather insidegoCT Corp. to retain earnings thetax company, Simple solution avoidance. Ideally, corporate minutes possible that it won’t owe the AET, continued on page 59 than pay outif double taxed dividends.

Regardless of your needs for working the company has a good reason for or other documentation, such as the large accumulation.

Forward thinking Earnings in excess of $250,000 will be permitted if the company can show that it had a reasonable need for holding onto cash and other liquid assets. That need could be to provide funding for a specific plan related to the company’s business, such

emails, will include a discussion of, for example, the company’s intent to upgrade its information technology with an expensive new system.

No matter how well you can show that a plan was in place as a reason for accumulating excess assets, you’ll also need to show that the plan has since been executed, or is in some stage of progress.

capital, there are basic steps you can take to avoid or limit the AET. For instance, you can pay some dividends to shareholders each year, even if that generates double taxation. A company that retains excess earnings while never paying out dividends may be especially vulnerable to IRS scrutiny and assessment of the AET. g

TAX CALENDAR DECEMBER 2014

JANUARY 2015

December 15

January 15

Employers. For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in November if the monthly rule applies.

Individuals. Make a payment of your estimated tax for 2014 if you did not pay your income tax for the year through withholding (or did not pay enough in tax that way). Use Form 1040-ES. This is the final installment date for 2014 estimated tax. However, you don’t have to make this payment if you file your 2014 return and pay any tax due by February 2, 2015.

Corporations. Deposit the fourth installment of estimated income tax for 2014.

Serving the Bonding and Insurance

needs of the Employers. For Social Security, Medicare, withheld income tax, and N.E. construction industry for overnonpayroll 40 years. withholding, deposit the tax for payments in December 2014 if the monthly rule applies.

Adam DeSanctis Gregory Juwa James Axon Michael Carney Wilder Parks Michael Gilbert CPA Client Bulletin (ISSN 1942-7271) is prepared by AICPA staff for the clients of its members and other practitioners. The Bulletin carries no official authority, and its contents Bryan The Juwa David Boutiette Paul Patalano Dick Caruso Jonathan Duggan Eric Pratt should not be acted upon without professional advice. Copyright © 2014 by the American Institute of Certified Public Accountants, Inc., New York, NY 10036-8775. Printed in the U.S.A. Sidney Kess, CPA, JD, Editor. For AICPA customer service, call 888.777.7077 or visit www.cpa2biz.com.

4

58

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

Financial Management continued from page 58 Cash Crunch However, CT Corp. might run into a tax problem: the accumulated earnings tax (AET). Retained earnings over $250,000 are subject to this tax ($150,000 for personal service corporations, such as professional practices). Thus, if CT Corp. had $200,000 in retained earnings from prior years, this year’s $400,000 makes the total $600,000, which is $350,000 over the $250,000 limit. CT Corp. would owe tax on the $350,000 overage: $70,000, at the current 20% AET rate.

In practice, the AET is not a certainty. The IRS might investigate when CT Corp. reports retained earnings over $250,000 on its corporate income tax return, but it’s possible that it won’t owe the AET, Aon Risk Solutions if the company has a good reason Construction Services Group for the large accumulation.

Forward Thinking Earnings in excess of $250,000 will be permitted if the company can show that it had a reasonable need for holding onto cash and other liquid assets. That need could be to provide funding for a specific plan related to the company’s business, such as buying expensive equipment or expanding into a new territory.

Solid Proof In order to retain earnings over $250,000, yet avoid the AET, a corporation must be able to show that there really was a plan in place to use the money, and that the reasons for the retention go beyond tax avoidance. Ideally, corporate minutes or other documentation, such as emails, will include a discussion of, for example, the company’s intent to upgrade its information technology with an expensive new system.

No matter how well you can show that a plan was in place as a reason for accumulating excess assets, you’ll also need to show that the plan has since been executed, or is in some stage of progress.

have approved the concept that C corporations can cite working capital as a reason for accumulating earnings over $250,000.

Simple Solution Regardless of your needs for working capital, there are basic steps you can take to avoid or limit the AET. For instance, you can pay some dividends to shareholders each year, even if that generates double taxation. A company that retains excess earnings while never paying out dividends may be especially vulnerable to IRS scrutiny and assessment of the AET. Reprinted from CPA Client Bulletin. n

Managing Risk Takes More Than Machinery As the leading provider of risk solutions to the construction industry, Aon Construction Services Group partners with clients to provide insighful analysis, strategic direction and creative solutions backed by our dedicated team of construction experts and the strength of Aon’s global network.

Let Aon Construction Services Group empower your growth, profit and continuity. aon.com/construction Kevin White, CEO 617.457.7717 Kevin.White@aon.com

Brian Driscoll, Managing Director 617.457.7668 brian.driscoll@aon.com

Paul Healy, National Contract Surety 617.457.7719 paul.healy@aon.com

Mark Herendeen, Surety 617.457.7715 mark.herendeen@aon.com

Michael Scott, Insurance 617.457.7699

Mark Toglia, Wrap-Up 617.457.7727 mark.toglia@aon.com

Risk. Reinsurance. Human Resources.

What’s more, court decisions

DECEMBER, 2014

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

59

E.H. Perkins Construction, Inc. & Subsidiaries P.O. Box 301, Wayland, MA 01778 (508) 358-6161 • (781) 890-6505

-PLANT LOCATIONSQUINN-PERKINS S & G CO. Burlington (781) 272-0200 PANDOLF-PERKINS CO. Sterling (978) 422-8812 • (800) 339-3389 KANE-PERKINS CO. Hudson (978) 562-3436 • (800) 287-3436 GRAVEL • SAND • STONE FILL AND LOAM BITUMINOUS CONCRETE (PAVING) READY-MIX CONCRETE PRECAST CONCRETE PRODUCTS

E

H

P

Equal Opportunity/Affirmative Action Employer

60

Advertisers’ Index ATS Equipment, Inc. ...........................................................26 Adler Tank Rentals................................................................7 Allied Recycling Center...................................................... 24 American Shoring, Inc..................................... Ins. Back Cvr. Aon Construction Services Group........................................59 Boro Sand & Stone Corp......................................................57 Dennis K. Burke, Inc............................................................52 Concrete Systems, Inc..........................................................10 Cumberland Farms...............................................................15 Dagle Electrical Construction, Corp....................................16 Darmody, Merlino & Co., LLP........................................... 46 DeSanctis Insurance Agency, Inc. .......................................58 Dig Safe System, Inc............................................................48 The Driscoll Agency ............................................................33 EJ..........................................................................................20 Eastern Insurance Group, LLC..............................................4 Eastern States Insurance Agency, Inc..................................21 T. L. Edwards, Inc................................................................55 Excellence in Safety Inc.......................................................19 Ferguson Waterworks...........................................................29 Foley Carrier Services, LLC............................................... 44 Geod Consulting, Inc............................................................56 L. Guerini Group, Inc...........................................................56 HD Supply Waterworks..........................................................2 A. H. Harris & Sons, Inc. ....................................................56 Hinckley Allen, LLP............................................................28 John Hoadley & Sons, Inc....................................................17 P. A. Landers, Inc.................................................................43 Lawrence-Lynch Corp..........................................................23 Lorusso Corp........................................................................47 Lorusso Heavy Equipment, LLC...........................................6 Mabey, Inc............................................................................52 Mass Broken Stone Company...............................................45 Milton CAT...........................................................................30 Norfolk Power Equipment, Inc...............................................9 North East Shoring Equipment, LLC...................................54 NorthStar Insurance Services, Inc.........................................8 Ocean State Oil.....................................................................57 Our Outhouses, Inc...............................................................48 Palmer Paving Corporation................................................. 44 E. H. Perkins Construction Co., Inc.................................... 60 Podgurski Corp.....................................................................42 E. J. Prescott, Inc..............................................Ins. Front Cvr. Rain For Rent-New England.................................................38 Read Custom Soils ...............................................................48 Rogers & Gray Insurance Agency, Inc.................................14 Schmidt Equipment, Inc.......................................... Back Cvr. The Scituate Companies.......................................................18 Shea Concrete Products........................................................32 Smith Print........................................................................... 44 Starkweather & Shepley Ins. Brokerage, Inc.......................42 Ti-SALES, Inc. ....................................................................42 Albert J. Tonry & Co., Inc....................................................11 United Concrete Products, Inc. ............................................50 United Rentals Trench Safety...............................................22 C. N. Wood Co., Inc. ........................................................... 40 Woodco Machinery, Inc.......................................................12

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

DECEMBER, 2014

from Design to Delivery American Shoring is the Leader in High Quality, ModularTrench Shoring A complete line of heavy duty and light weight aluminum or steel trench shoring is available for all your needs.

Our staff is waiting for your call with professional advice to recommend the best specific product for your project.

Field service support and supervision available with on site assembly and take down.

Inquire about our Competent Person, Confined Space & OSHA 10 training classes.

All systems are manufactured in the USA.

207 Lake Street, Newburgh, NY 12550

1.800.407.4674 www.americanshoring.com E-Mail us at

sales@americanshoring.com In New England

SALES • RENTALS • SERVICE REPAIRS • TRADE-INS RECERTIFICATION

American Shoring of Massachusetts, Inc.

226 Cherry Street Shrewsbury, Mass 01545

508-842-2822 Fax: 508-842-2824

RReedduuccee TTaaiill--SSw wiinngg,, N Noott YYoouurr O Oppttiioonnss

City life isn’t for everyone. But the new 135G and 245G Excavators couldn’t be more at home. . But the new 135G and 245G Excavators couldn’t be more at home. Their reduced-tail-swing configuration opens up a TCihtyeliifreriesnd’ut fcoer dev-etrayiol-nsew ing configuration opens up a wide range of possibilities, making congested wide range of possibilities, making congested jobsites and working around obstacles a welcomed challenge. Coupled with their EPA-certified jInotbersim iteTsiear n4 denwgionerks,isnhgorat-rtohuronwdloowb-esftfaorctlecosnatrowlse, lacnodmspeadciocuhsa, qllueinetgcea.bsC, othuepy’llel kdeewpiytohutwhaenirtinEgPtAo-scteayrtoinfitehde jobsite, despite how easy Itnhetyerairm e toTiloeard4uepnag ndingeest ,toshthoertn-etxh t roonw e. Clo onwta-cetfufo s trotdcaoy.ntrols, and spacious, quiet cabs, they’ll keep you wanting to stay on the jobsite, despite how easy they are to load up and get to the next one. Contact us today.

Contact us today!

Contact us today!

w ww ww w..SScch hm miid dttEEq qu uiip pm meen ntt..cco om m 5 5 LLo occaattiio on nss SSeerrvviin ngg M MA A& &R RII ((8 80 00 0)) 9 92 22 2--8 82 29 95 5