Construction Outlook December 2022

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Looking Back on 2022

We have reached the time of year when we begin to reflect on the last 12 months. Winter is here and the holiday season is upon us. I hope everyone had a successful end to this year’s construction season, or that you still have crews working. It has been an honor to serve as UCANE’s President in its 68th year, and I would like to thank the Officers, Board, membership, and UCANE staff for their support. When I was sworn in as UCANE President, I could not have predicted how quickly the year would pass by. However, that doesn’t mean that 2022 wasn’t a busy and productive year for UCANE. In fact, it was just the opposite.

At this time last year, we were rightfully celebrating the long sought-after passage of the Bipartisan Infrastructure Law. Massachusetts is still on track to receive billions of dollars in additional funding for drinking water, wastewater, and our underground utility infrastructure over the next five years. However, we know that as welcome as this funding is, it is still not sufficient to fully fill the gap in funding created by years of neglect. As a result, UCANE will maintain our strong #InvestInWaterMA campaign and continue to advocate for additional funding and long-term solutions. This past year the State Legislature authorized an additional $115 million for the Clean Water Trust, $100 million for port infrastructure, $75 million for climate resiliency, and increased the MassWorks public works improvement program to $400 million. I would like to thank House Speaker Ron Mariano, Senate President Karen Spilka, and members of the Legislature for recognizing the importance of our underground infrastructure. I’d also like to thank Governor Baker and Lieutenant Governor Polito for their efforts in prioritizing the work our industry performs, and for being responsive to our concerns throughout the last eight years. On behalf of UCANE, we wish them well on their future endeavors outside of the Corner Office.

We remain vigilant in overcoming the challenges we currently face to assure that this additional funding is used to get projects out to bid and completed. UCANE continues to work with awarding authorities, public works officials, engineers, and other stakeholders to give consideration to the current conditions in the construction industry and their impacts on public works projects. We are asking municipalities and awarding authorities to adopt a more flexible approach to material selection and project scheduling, as well as the use of price adjustment clauses in contracts to account for inflation and the allowance of time extensions for supply chain issues in light of current industry conditions. We remain extremely optimistic that projects will move forward given the amount of additional funding that is available.

Aside from funding, we were also successful in securing the passage of our bill to update the Commonwealth’s Dig-Safe law, Mass. Gen. Laws ch. 82, §40 et. seq. to officially permit the use of airblowers and vacuums as non-mechanical means; re -

quire municipal traffic departments to report the location of their underground utilities, and require companies to conduct periodic audits to ensure a uniformity of standards adhered to by their locating personnel. The new law also codifies an existing practice where the Department of Public Utilities may require additional training in Dig-Safe compliance rather than a fine.

This is all done through our partnership with Mark Molloy of Cascade Strategies. I want to thank him for the work he does on Beacon Hill to promote and oppose the many pieces of legislation that effect our industry. This year, once again, many bills were filed that would have had broad ranging effects on the way our companies do business. At the top of this list was a bill to address “wage theft.” The bill, while well-intentioned, would have had a tremendously negative impact on the construction industry, potentially costing companies millions of dollars even if they had not done anything wrong. UCANE worked with other construction associations to successfully defeat the bill. You can read about all of our 2022 legislative efforts as part of our End of Yeat Wrap-Up beginning on page 23.

UCANE is much more than just legislative advocacy. Our Safety Committee had a very active year in 2022. We again had a large number of companies and employees participate in the National Trench Safety Stand Down week in June. We continued to offer the latest safety training seminars and news to the membership. We also had a successful year of Dinner Meetings and social events, and intend to offer more opportunities to network and gather in 2023.

I have heard many times over the years about how UCANE is a “member-driven” Association. As President, I now have a better sense of how remarkably true that statement is. Whether it be at dinner meetings, our annual banquet, or Board Meetings, I am constantly astounded by the generosity and camaraderie our membership has for each other, and that is why I am extremely proud to be able to serve as UCANE President for another year in 2023, and I look forward to building on the progress we have made.

Lastly, I would like to wish you and your families Happy and Healthy Holidays, A Very Merry Christmas, and a Prosperous New Year! n

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Democratic Sweep of Constitutional Offices; Healey-Driscoll Transition Team Announces Full Policy Committees

November’s general election saw Attorney General Maura Healey and Salem Mayor Kim Driscoll lead a Democratic tsunami as each statewide Democratic candidate beat their Republican rival by double digits. Former Boston City Councilor Andrea Campbell (Attorney General), former State Senator Diana DiZoglio (State Auditor), current Treasurer Deb Goldberg (re-election) and current Secretary of State Bill Galvin (re-election) easily swept into office during a year that saw surprisingly higher than predicted turnout. In the battle for the State House, Democrats saw their supermajority in the House (133D-27R) grow while Republicans fell short in a couple of close Senate (37D-3R) battles. The Massachusetts legislature will see its recent streak of new members continue to grow as over 25 individuals will assume new positions under the golden dome.

With their election now in hand, Massachusetts Governor-elect Healey and Lieutenant Governor-elect Driscoll announced the membership of their six transition policy committees. Each committee is composed of a diverse group of community members, advocates, subject matter experts, and business and nonprofit leaders. Each committee, which is led by 2-4 co-chairs, has been tasked with applying an “equity and affordability lens to their work, always considering the ways in which historically marginalized communities may be impacted and how to alleviate economic burdens for Massachusetts residents.”.

Of particular note to UCANE members, the infrastructure committee “How we get around: How we make sure our public transportation infrastructure is safe, reliable, affordable and connects our entire state” is chaired by former Massport leader Tom Glynn and Monica TibbitsNutt, who is the Executive Director of the 128 Council.

Members include, but are not limited to: John Pourbaix, Executive Director of Construction Industries of Massachusetts (CIM); Andrew Bagley, Vice President, Massachusetts Taxpayers Foundation; Tom Cahir, Administrator, Cape Cod Regional Transit Authority; State Senator Eric Lesser; former Braintree Mayor Joe Sullivan; and former MassHighway Commissioner Tom Tinlin.

A related transition committee of interest is the “Climate readiness, resiliency and adaptation: How we tackle the climate crisis head on while also creating good-paying jobs, protecting our communities and addressing climate injustices,” which is chaired by former United States Environmental Protection Agency Administrator Gina McCarthy and Lizzi Weyant, Deputy Executive Director for Public Affairs and Advocacy, Metropolitan Area Planning Council (MAPC). Members include, but are not limited to: Lou Antonellis, Business Manager, IBEW 103; Alicia Barton, Chief Executive Officer, FirstLight Power; Former State Senator Ben Downing, Vice President Public Affairs, The Engine; Dan McWilliams, Business Agent, Local 7 Iron Workers; Elizabeth Turnbull Henry, President, Environmental League of Massachusetts and former State Senator Daniel Wolf, Founder and Board Chair, Cape Air.

The Healey-Driscoll Administration will begin announcing key personnel and policy objectives throughout December into January. As the Baker-Polito Administration hands the reins over to the newly elected Democrats, it brings to mind that Democrats last held control of the Governor’s Office, the Senate and House of Representatives eight years ago.

For more information about the Healey-Driscoll transition committees, please visit: www.HealeyDriscollTransition.com.

City of Fall River to Remove All Lead Service Lines from City’s Drinking Water System

According to a press release issued by the Massachusetts Department of Environmental Protection (MassDEP), the City of Fall River will take stronger steps to remove lead service lines throughout the city following a lead action level exceedance (ALE) during water quality testing conducted in 2021. Under a recently announced agreement, the MassDEP will suspend a $25,300 penalty as long as the municipality fully complies with the requirements outlined in a consent order signed by the parties. The settlement will result in the replacement of all lead service lines in the city water distribution system.

In 2021, more than 10 percent of Fall River’s test samples found elevated levels of lead in its drinking water, resulting in an ALE – the city’s first lead exceedance since 2005. Under Massachusetts’ Drinking Water Regulations and the federal Lead and Copper Rule, when lead con-

centrations exceed an action level of 15 parts per billion (ppb) in more than 10 percent of water samples, the system must undertake several additional actions to control corrosion, reduce exposure, and educate the public about the adverse health effects of lead in drinking water. In Fall River’s case, such actions include submitting biweekly water quality data from the entry point to its distribution system and submitting to MassDEP a Lead Service Line Replacement (LSLR) plan.

Fall River reported to MassDEP that, as of June 2022, it had approximately 3,700 known partial or full LSLs in its distribution system. The LSLR plan requires the city to replace at least 400 to 600 of those connections until all service lines are replaced, including all lines on city property as well as LSL connections on private

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property – at no cost to the property owner. The settlement also requires the city to regularly report to MassDEP on its progress of replacing LSLs, and to submit an annual report outlining where LSLs were replaced during the previous year and where additional LSLs will be addressed moving forward. The city is expected to utilize local, state, and federal funding sources to implement the replacement plan.

To the City of Fall River’s credit, the MassDEP acknowledged that the city’s leadership and water quality personnel responded quickly and proactively once the original results came back. The situation in Fall River is similar to what many municipalities are struggling with – identifying lead service lines and replacing them once discovered. Throughout the Commonwealth, new initiatives are being developed to provide funding to address both of these challenges.

For more information about the Clean Water Trust’s and MassDEP’s lead service line efforts, please visit: https://www.mass.gov/info-details/ lead-service-line-planning-program.

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MWRA Releases North and South Studies

Focused on Expanding Water Service

During its board meeting in November, the Massachusetts Water Resources Authority’s (MWRA) Board of Directors reviewed the results of two studies on the feasibility of adding additional communities to the north and south of the agency’s water system. Both studies conceptually identify that the MWRA could provide the full water demands to both study areas. Importantly, in order to fully supply both study areas, large diameter pipelines would have to be built extending from the MWRA’s existing metropolitan tunnel system. Partial supplies to supplement existing community sources could also be provided through the extension of MWRA’s existing distribution system. The northern study focused on communities that currently draw water from the long-stressed Ipswich River Basin, which includes Beverly, Danvers, Hamilton, Ipswich, Middleton, Lynn, Lynnfield Center Water

District, Peabody, Salem, Topsfield, Wenham, and Wilmington. Additionally, the South Shore study focused on the communities of Abington, Avon, Brockton, Cohasset, Hanover, Hingham, Norwell, Scituate, Rockland, Weymouth, and the former Naval Air Station.

According to a press release from the MWRA, the agency’s vast reservoir system means that it can safely provide up to 300 million gallons per day (MGD) of high-quality drinking water. Since its creation in 1985, MWRA and its customers have reduced usage from nearly 350 MGD to an average 200 MGD in 2022, leaving room for expansion. In addition to the north and south study areas, the MWRA is also exploring the possibility of expanding the water system to a number of MetroWest communities, including Acton, Bedford, Chelmsford, Concord, Groton, Holliston,

Hopkinton, Lincoln, Littleton, Maynard, Natick, Sudbury, Wayland, Wellesley, and Weston.

While the water demands for all three study areas at one time would exceed MWRA’s available water, MWRA could supply water to a significant portion of these communities if there is interest. As reported in a previous legislative update in Construction Outlook, the MWRA and its Advisory Board recently voted to waive the entrance fee for new communities joining the system for a period of five years in order to encourage new communities to join, citing the challenges communities face, such as stressed river basins requiring water restrictions, rising concerns about per- and polyfluoroalkyl substances (PFAS), and constrained economic development. The benefit to existing member communities would be a reduction in their assessments each time a new community joins the system.

To review the MWRA’s recent studies, please visit: https://www.mwra.com/02org/html/expansion.html.

Governor’s Commission on Clean Heat Issues Final Report

At the end of November, the Commission on Clean Heat, established by Governor Baker through Executive Order 596 in September 2021, issued its final recommendations and report. The recommendations include the adoption of core principles and practices focused on ensuring an equitable approach to decarbonization of both existing and new buildings, including appropriate resourcing, institutional coordination and alignment; the development and implementation of a Clean Heat Standard, joint natural gas and electric system planning, and analyses of the potential impact of other associated regulatory changes; the reorganization of existing energy efficiency and clean energy transition programs to be more user friendly for residents, businesses, and contractors; and investments in innovation, workforce development, consumer education, and market development to help accelerate the building decarbonization transition.

On September 20, 2021, Governor Baker signed the Executive Order to establish the Commission on Clean Heat to provide recommendations on the strategies and policies to achieve emissions reductions from the use of heating fuels in the Commonwealth. The Commission on Clean Heat’s report aligns with the Baker-Polito Administration’s 2050 Roadmap report and the 2025/2030 Clean Energy and Climate Plan by providing policy directions that seek to accelerate the deployment of energy efficiency programs and clean heating systems in new and existing buildings, and transition current distribution systems to clean energy.

Recommendations contained within the commission’s report include, but are not limited to:

• Implementation of a clean heat standard as a regulatory approach to meet the sublimits for the building sector, focusing on electrification and energy efficiency measures.

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 hours in advance.*

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

• Notify non-member facility owners.

• Maintain the marks placed by underground facility owners.

• 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 in the event of a gas leak, or if a damaged facility poses a risk to public safety.

• Know your state’s excavation requirements.

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

*

• Coordinated joint energy system planning across Massachusetts’ gas and electric utilities and municipal gas and electric companies, and in conjunction with key stakeholders and communities, to ease the transition from gas to electric heating by identifying geographic priorities for investment in and/or strategic retirement of energy infrastructure.

• Establishing climate finance mechanisms through a climate bank to de-risk and mobilize private sector investments for buildings pursu-

ing deep decarbonization measures.

• Evaluation of opportunities for addressing operating cost barriers to the adoption of clean heating technologies, including programs or credits to help defray costs from electrification, as well as evaluation of cost-reflective rate structures to encourage conservation and reduce operating costs of electric heating systems.

For more information regarding the Governor’s Commission on Clean Heat, its members, and the final report, please visit: www.mass.gov/orgs/commission-on-clean-heat.

South Coast Towns Receive $195K in Water Quality Grants

According to a late November press release from the Executive Office of Energy and Environmental Affairs (EEA), the Baker-Polito Administration awarded $195,000 in federally funded grant awards for projects that will protect drinking water supplies, preserve important habitat, and address pollution from stormwater runoff in the Buzzards Bay watershed. The towns of Fairhaven, Mattapoisett, Rochester, and Westport are receiving grant funding, which is being matched by over $132,000 in private contributions and in-kind services, by the Buzzards Bay National Estuary Program (NEP) through the EEA’s Office of Coastal Zone Management (CZM), with funding from the U.S. Environmental Protection Agency (EPA) Southeast New England Program. Specifically, the following grants were awarded to the municipalities in the south coast region:

• The Town of Rochester will receive $70,000 to work with the Towns of Mattapoisett, Fairhaven, Marion, and Acushnet, along with the Buzzards Bay Coalition, to purchase and permanently

protect 240 acres of land important to protect the Mattapoisett River Valley aquifer. The newly purchased land will protect a multi-town public drinking water supply resource, as well as wetlands, fields, forests, and habitat for fish and wildlife.

• The Town of Mattapoisett will receive $35,000 to establish a strategic master plan for stormwater management in the Shipyard Lane area, which lies east of Mattapoisett Village and is a town priority for stormwater remediation.

• The Town of Mattapoisett will also receive $35,000 to work with the Mattapoisett Land Trust to purchase and permanently protect two parcels of undeveloped land totaling 14 acres in the Brandt Island Cove area of Mattapoisett. The Mattapoisett Land Trust intends to create a trail system, which will connect to a larger network of trails, as well as a small parking area on the property to allow for public access.

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• The Town of Westport will receive $30,000 to work with the Buzzards Bay Coalition to purchase and permanently protect 25 acres of land associated with the headwaters of Snell Creek, a tributary of the East Branch of the Westport River.

• The Town of Fairhaven will receive $25,000 to work with the Buzzards Bay Coalition to permanently protect 9 acres of land that provide a key upland buffer to wetlands and that protect important wildlife habitats, including state-designated habitat. Once acquired, the land will be open to the public for passive recreational purposes and will provide coastal public access to outer New Bedford Harbor.

The Office of Coastal Zone Management is EEA’s lead policy and planning agency on coastal and ocean issues. Created in 1985, the Buzzards Bay National Estuary Program provides grants and technical assistance to Buzzards Bay watershed communities to protect and restore water quality and natural resources in Buzzards Bay and its surrounding watershed and is one of 28 similar programs designated by the EPA. To find more information about the wide variety of programs offered by the CZM, visit: https:// www.mass.gov/info-details/czm-programs.

News in Brief

• Massachusetts Unemployment Rate Ticks Up, But Still Better Than National Average. According to the Executive Office of Labor and Workforce Development, the state’s October total unemployment rate was 3.5 percent, up one-tenth of a percentage point over-the-month prior. The United States Bureau of Labor Statistics’ preliminary job estimates indicate Massachusetts gained 9,800 jobs in October. This follows last month’s revised gain of 22,900 jobs. The largest over the month private sector job gains were in Financial Activities, Professional and Business Services, and Government. Employment now stands at 3,710,600. Since the employment decline in April 2020, Massachusetts gained 659,600 jobs. From October 2021 to October 2022, BLS estimates Massachusetts gained 141,300 jobs. The largest over the year gains occurred in Professional and Business Services, Leisure and Hospitality, and Education and Health Services. While Construction lost 200 jobs over the month, over the year, 11,400 were added. The October unemployment rate of 3.5 percent was two-tenths of a percentage point below the national rate of 3.7 percent. Detailed labor market information is available at www.mass. gov/economicresearch.

• EEA Holds Public Listening Session for Draft Environmental Justice Strategy. The Executive Office of Energy and Environmental Affairs (EEA) has developed a secretariat-wide document with input from the agency’s Environmental Justice Task Force, which originally convened in September 2020. EEA is now seeking public input and comments on this Draft Environmental Justice Strategy. There will be four public comment listening sessions hosted during the public comment period running from November 9, 2022, to January 27, 2023. This schedule includes two virtual sessions and two in-person sessions. Written comments will be accepted until 5:00 pm on January 27, 2023. To review a copy of the draft strategy and for information on submitting comments, please visit: https://www.mass.gov/ info-details/eeas-draft-environmental-justiceej-strategy#draft-eea-ej-strategy- n

UCANE’s 2022 Year End Wrap-Up

2022 Overview

This was another successful year for UCANE, having earned long and hard-fought victories that produced once-in-a-generation funding levels for utility infrastructure and public works projects. We were also grateful to have a full calendar of events this year and provide opportunities for members to gather and network once again, including the return of our Annual Banquet. All of our activity is outlined below, but UCANE will remain vigilant, providing services and advocating on behalf of our industry. We recognize that as we end 2022, there are challenges that our industry will continue to face, including supply chain, inflation, and workforce issues. We are committed to ensuring that our industry remains healthy and these additional funds are expended to complete critical infrastructure projects. UCANE remains one of the strongest and most respected Trade Associations in the region because of the generosity and commitment of its members, and we are looking forward to continuing that in 2023!

Legislative Activity

UCANE reviewed over 6,000 pieces of legislation filed at the start of the session; monitored and tracked over 250 pieces of legislation; and took a more active role (i.e. testifying or speaking to committee leadership and staff) on over 60 pieces of legislation or appropriations. Many of these bills would have a negative impact on member companies and had been refiled from the previous session after UCANE successfully advocated against their passage. They ranged from establishing overly burdensome regulations to creating unfair advantages in public bidding laws. UCANE’s staff and our lobbyist Mark Molloy of Cascade Strategies, tracked these bills, and successfully lobbied against these measures by developing position papers and written testimony, visiting legislators with UCANE members, speaking at public hearings, and otherwise informing Beacon Hill legislators about the potential negative impacts of these bills. UCANE continues to protect and promote our industry and maintain our Association’s reputation as one of the most active and involved industry advocates on Beacon Hill.

UCANE directly filed four pieces of legislation aimed at improving the construction industry. Filed matters included: An Act Relative to Public Safety in Excavations (Dig-Safe legislation) (HB2815/SB1392); An Act Relative to Water Infrastructure Funding (HB2472)/(SB1625); An Act Relative to the Payment of Police Details (HB1560/SB1752); and An Act Relative to the Construction of Water Treatment Plants (HB2793/ SB1918).

In addition, UCANE supported a variety of initiatives relative to the funding of the Clean Water Trust’s contract-assistance line-item; a reduction in employers’ additional financial obligations under the COVIDimpacted recalculation of the unemployment insurance fund, and legislation to more closely study the state’s MBE/WBE requirements.

UCANE Successfully Secures Passage of Dig Safe Law Changes

In addition to every one of UCANE’s filed matters receiving favorable committee reports, UCANE was able to advocate for the passage of our Dig Safe legislation within the Commonwealth’s Transportation Bond Bill, Chapter 176 of the Acts of 2022 (Sections 6-13). The new law updates the Commonwealth’s Dig Safe law, Mass. Gen. Laws ch. 82, §40 et. seq. to officially permit the use of airblowers and vacuums as non-mechanical means; require municipal traffic departments to report the location of their underground utilities; include professional land surveyors within the Dig Safe law; and require companies to conduct periodic audits to ensure a uniformity of standards adhered to by their locating personnel. The new law also codifies an existing practice where the Department of Public Utilities may require additional training in Dig Safe compliance in lieu of a fine for first time offenses.

UCANE also successfully opposed legislation that would have adversely impacted the construction industry by reducing competition – whether by redefining the definition of “fraud,” providing one license-type priority over another, limiting access to certain manufacturers, and other similar matters. Such measures, some of which had been adopted in

one branch of the session before, were not included in either branch’s filings this year.

UCANE continued to monitor and weigh in, where appropriate, on regulatory initiatives such as the Massachusetts Department of Environmental Protection’s proposed large entity fleet reporting requirement, and the Massachusetts Supplier Diversity Office’s updated regulations governing minority- and women-owned businesses, among others.

UCANE completed, its efforts to meet the remainder of the nineteen (19) newly elected legislators and newly appointed leadership of subject matter committees (i.e. Environment; State Administration; Consumer Protection and Professional Licensure; Public Service; etc.) to inform them about our Association, the Commonwealth’s underground utility infrastructure needs, and the construction industry in Massachusetts in general.

UCANE Successfully Supports Additional Water Infrastructure Funding

When the Legislature originally debated on how to appropriate American Rescue Plan (ARPA) funds, UCANE successfully lobbied for the inclusion of over

$100 million directly to a reserve for the Clean Water Trust through the respective Drinking and Clean Water Statewide Revolving Funds (SRFs). This did not, however, spend down the entirety of the available ARPA funds. More recently, UCANE, along with other organizations, advocated before the legislature for additional ARPA funding in the economic development legislation that was adopted, Chapter 268 of the Acts of 2022. This legislation, which was the last omnibus bill passed for the session, included an additional $115 million for the Clean Water Trust, $100 million for port infrastructure, and $75 million for climate resiliency.

#InvestInWaterMA Campaign Continues

UCANE continued its #InvestinWaterMA campaign in 2022. The effort has paid dividends with the successful advocacy that has made unprecedented new levels of funding available for water and sewer infrastructure projects in Massachusetts thanks to federal and state ARPA and COVID relief funding, the upcoming Bipartisan Infrastructure Law, and growing state budget surpluses.

UCANE sought to build a public relations and awareness campaign to ensure that often-over-

Wrap-Up continued from page 23 continued on page 27

looked water and sewer projects would get their fair share of attention and funding. The UCANE Board of Directors recognized that if water infrastructure is adequately funded, all underground utilities benefit. We developed and implemented a comprehensive, integrated campaign to keep water and sewer infrastructure central to the #mapoli funding discussion, including through building a strong, growing coalition of allied groups supporting water-sewer funding.

This campaign came together under the banner of #InvestInWaterMA and to date has gained support from major Massachusetts business, industry, and environmental groups. The campaign has included a steady and sustained drumbeat of news coverage, social media activity that has won engagement from top Massachusetts political and business leaders, a prominent and buzz-generating billboard, a lively video, and an influential op-ed by the leaders of the state’s top real-estate and biotechnology associations.

UCANE’s presence on social media has grown significantly in sophistication and reach, including a more than doubling of followers on LinkedIn and Twitter and orders of magnitude greater engagement, likes, shares, and retweets. We also continue to use social media to identify and promote important

local water infrastructure discussions and debates throughout the Commonwealth that could lead to hundreds of millions of dollars in new business for UCANE members in coming years.

Cape Cod's Water Protection Trust, Backed By UCANE, Continues to Pay Dividends in 2022

As many UCANE members know, municipalities on Cape Cod are under court order to address wastewater issues as a result of a successful lawsuit filed by the Conservation Law Foundation (CLF). This is known as the Section 208 Plan. The cost to implement the 208 Plan is estimated between $2 billion and $4 billion over the next 20 years. The 208 Plan is critical to protecting Cape Cod’s drinking water, its beaches, and its coastal industries from excess nitrogen loads created primarily by failed septic systems.

Establishment of a Cape Cod Water Protection Trust was heavily promoted and supported by UCANE and others in order to establish a funding source to help pay for the sewer infrastructure on Cape Cod, which was mandated in the Section 208 Plan. The 2.75% tax assessed to all short-term rentals (hotels, motels, homes) on the Cape will be dedi -

cated to assisting the 15 Cape Cod towns and will provide a financial subsidy in the form of a principal forgiveness grant to towns that move forward with the necessary infrastructure projects. To date, the Trust has awarded nearly $95 million to Cape Cod communities to fund new water quality and wastewater projects and certain pre-existing wastewater debt. Progress continued with several projects that were approved by town meetings, coming out to bid, and wastewater management plans being finalized. The implementation of Section 208 will improve the health and well-being of people living on the Cape, and will ultimately mean greater opportunities for UCANE contractors for many years to come.

UCANE/Municipal Officials Continue to Meet: Focus on Implementation of Federal Infrastructure Bill

UCANE continued to work with several municipal organizations and officials to advocate for increased investment in water infrastructure through the Federal Infrastructure Investment and Jobs Act, stimulus and surplus funds, the Clean Water Trust, and other revenue sources. Every year we regularly meet with the Mass. Municipal Association (MMA), Mass. Highway Association (MHA), and the Norfolk-Bristol-Middlesex Highway Association (NBM). In 2022 UCANE met with Public Works Directors to further efforts of a Task Force started in 2021. While the long-term goal of the Task Force is to standardize portions of bid documents for the benefit of both Owners and Bidders, the focus of the meetings in 2022 surrounded how to maximize usage of funding received from the Federal Infrastructure Investment and Jobs Act (IIJA) as well as supply chain and inflation issues. UCANE also sent a letter to all municipalities with recommendations for best practices, and urging cities and towns to move forward with critical projects without delay.

UCANE’S September Dinner Meeting hosted a lively and interactive panel discussion with six speakers representing UCANE Contractors, DPW Directors, and Consulting Engineers. The topics included how to effectively utilize Federal Infrastructure Funds in 2023 and how to address impediments including the aforementioned supply chain issues, inflation, as well as workforce shortages. UCANE and MHA also co-hosted a discussion with Congressman Jake Auchincloss on these topics. We will continue to partner with public works and municipal officials on issues that affect our industry.

Wage Theft Legislation

There was once again a significant effort to pass

wage theft legislation in 2022. UCANE recognizes that wage theft hurts workers and responsible employers. Unfortunately, the proposed legislation goes too far and could unfairly punish a contractor for the actions of any tier of subcontractor, regardless of the general contractor’s knowledge of such actions. UCANE supports the enforcement of the many existing laws already in place on this issue and was part of a coalition that successfully lobbied for alternative measures to combat the non-payment of wages. UCANE will continue to work to protect its members from unfair legislation.

Water Infrastructure Alliance

UCANE has been an active member of the Water Infrastructure Alliance (WIA) comprised of construction, environmental, and engineering companies that promote clean water investment in Massachusetts. The investment is needed to close an estimated $21 billion funding gap for water and sewer needs that is projected in the Commonwealth over the next 20 years. It has been seven years since the passage of Chapter 259 of the Acts of 2014, which introduced a wide range of provisions to assist the water and sewer funding needs of municipalities and of the State in

general. The WIA and its membership strongly advocated for additional funding for water infrastructure and climate resiliency measures in 2022. UCANE, which continues to be a driving force in the WIA, provides research, information, testimony, and advocacy materials for other members. Finally, UCANE continues to participate in public relation campaigns for water infrastructure, including being a sponsor of the national “Imagine A Day Without Water” campaign for the sixth consecutive year.

Construction Outlook Magazine

2022 was again a very successful year for UCANE’s monthly publication, Construction Outlook magazine. The publication’s circulation continues to grow and, in addition to our membership, includes municipal DPW Directors, all State Legislators, Constitutional Officers, as well as our Congressional delegation. Several member firms were highlighted in our magazine with interesting feature stories about them and the challenging projects that they have performed.

We also continued our series of interviews with legislative leaders, municipal DPW officials, as well as UCANE Board and Safety Committee members. Our readers are also kept informed each month on the latest safety, legal, legislative, financial, and IT issues that are important to their businesses. Construction Outlook is well known at the State House, in Washington, and throughout our industry as the premier magazine for the underground construction industry.

Asbestos Removal Training Courses

UCANE has continued to offer its members both the 8-hour Class II Asbestos Training Course and the 4-hour Refresher Course (required every five years) in conjunction with ATC Associates, Inc., of West Springfield, MA. Both OSHA and the Department of Labor Standards have approved these courses, which were jointly developed by UCANE, MassDEP, and MWWA. UCANE also successfully lobbied for a temporary virtual training option due to the pandemic. Over the last ten years, more than 850 individuals have received Asbestos Cement Pipe (ACP) Worker Safety Certificates through UCANE. This number includes attendees from over 55 construction companies, as well as representatives from MassDEP, MWRA, MWWA, and municipalities.

MassDEP, MWRA, & BWSC

For the first time since 2019, UCANE held its An-

nual Forecast Dinner Meeting where the heads of the MWRA, BWSC, and the MassDEP present their annual forecasts detailing the upcoming 2022-2023 list of projects to be bid and their respective agency funding commitment. We published their capital projects and programs in Construction Outlook magazine.

UCANE maintains relationships with the leadership and decision makers at MassDEP, MWRA, and Boston Water & Sewer Commission (BWSC). We continue to attend MWRA Advisory Board meetings, and held quarterly meetings with MassDEP in order to keep up with discussions on budgets, capital planning, etc. In 2023, UCANE will continue to work closely with all of these agencies to promote the need for increased infrastructure investment and keep our membership informed of capital programs.

Construction Roundtable with AG

Along with other Construction Associations, UCANE continued to participate in construction roundtable meetings with Massachusetts Attorney General Maura Healey and her staff at the Fair Labor Division to discuss issues of concern to the construction industry. Agenda items in 2022 included areas of enforcement emphasis, discussing the potential im -

Wrap-Up continued from page 29 continued on page 33

pact of various legislative proposals, including wage theft legislation. Other items included reviewing bid protest decisions, prevailing wages issues, abuse of the sick leave law, and MBE/WBE compliance goals.

As Andrea Campbell takes over the AG’s role in 2023, UCANE looks forward to continuing productive roundtable discussions with the new AG and her staff.

OSHA & Safety Related Issues

Workplace Safety is always a top priority for UCANE. In 2022 we continued to provide members with updates on the latest safety issues, changes in safety legislation at both the State and National levels, and best management practices when it comes to providing a safe jobsite. Email alerts are broadcast to all members when there is important breaking safety news, and the Safety Corner articles in Construction Outlook magazine written by Safety Professionals employed by our own members, highlight safety topics of relevance. Safety updates are on the agenda at every UCANE Board meeting.

In 2020 and 2021, UCANE and the Safety Committee made it a priority to address the pandemic and its impact to the construction industry. UCANE produced a model COVID Safety Plan for our members to use to keep their employees safe and their jobsites open. UCANE kept our entire membership informed via email alerts of all the latest COVID related CDC, State, and City of Boston regulatory changes to business operations within hours of them being announced.

In June of 2022, UCANE again participated in a National Trench Safety Stand Down Week. This was an OSHA endorsed effort in which companies emphasized trench safety by planning a toolbox talk or other safety activity to take a break and emphasize the importance of trench safety. By the end of the week, 20 UCANE member firms representing over 2000 employees had participated, which was one of the largest participations by any Association in the country.

UCANE's Safety Committee met regularly in 2022. The Committee hosted Peter Barletta, from the Region 1 OSHA office, to update members on the latest OSHA activity, and in particular OSHA’s continued Trench Emphasis Program, Hot Weather requirements, and changes to OSHA’s Severe Violators Enforcement Policy. Other guest speakers addressed the Committee on important topics including updates on Confined Space compliance, air monitoring tools, DPU citations, and cell phone policies. The latest information on Employer responsibility regards al-

lowable drug and alcohol testing policies and mental health awareness was also shared between Safety experts on the Committee.

Educational Webinars with DPU/DCAMM

UCANE has maintained a professional relationship with state agencies, including the Massachusetts Department of Public Utilities (DPU) and Division of Capital Asset Management and Maintenance (DCAMM), throughout the years.

UCANE has worked jointly with DPU’s Pipeline Safety Division to host Webinars exclusive to UCANE members. The Webinars offer a unique opportunity to exchange information between contractors and DPU regulators with regards to excavating in public streets, and to assessments for violations of the Dig Safe Laws and/or DPU regulations. UCANE looks forward to continuing the exchange of information and ideas with DPU, in 2023, in order to reduce pipeline damage incidents and to provide safer worksites for construction employees and for the general public.

We also hosted an informational webinar exclusively for UCANE members with DCAMM outlining prequalification procedures and requirements and answering member questions.

Dana Kepner Company purchased Putnam Pipe at the end of 2021.

Now you will have even greater access to an extensive inventory, additional resources, and benefits of a wider market area.

We are looking forward to earning your trust and confidence. Thank you for your continued business.

National Legislative & Industry Initiatives

UCANE continues to be an active member of the national contractor’s group, the Clean Water Construction Coalition (CWCC), which has grown to 28 member Associations representing more than 11,000 contractors nationwide. CWCC maintains a strong presence in Washington, D.C. and promotes the need for clean water funding. Our group met with members of the Massachusetts Congressional delegation, as well as fellow CWCC contractors from across the country to discuss local and national water infrastructure issues.

The CWCC had a tremendous victory with the passage of the IIJA, which will provide over $1 Billion to Massachusetts for water infrastructure projects and billions more for other utility infrastructure projects. UCANE will continue to work with the CWCC to ensure that the maximum amount of this additional funding is allocated so that these critical infrastructure projects are completed.

Membership

UCANE continues to attract and add successful contractors of all sizes to our ranks. Each year new Associate Members – those that sell products and services to our contractors – also see the benefits of joining UCANE as an opportunity to increase contacts and to support the Utility Construction Industry. In 2022, UCANE welcomed a total of 14 new members to its current roster of over 250 members. With the help of current members, we will continue our efforts to add additional well-respected members who will benefit from joining our Association and will help to strengthen our industry.

Member Communications

UCANE continues to regularly update members with the latest information affecting our industry, including COVID, safety, and funding related issues. We also continued our “Video Updates” as a resource for members. These Updates are interviews with our state and federal lobbyists, as well as elected officials and candidates. We hope to expand on these video updates in 2023.

Once again, our UCANE Industry Directory was sent to all Municipal DPW Directors in the state. Our Directory also includes an “Emergency Services” section to provide DPW officials with quick contact information to reach UCANE members in case of a local emergency.

UCANE sent monthly e-newsletters informing members of the latest construction and legislative related issues. As a complimentary feature to support our “Buy from UCANE Members Program” our e-n ewsletter includes copies of ads that our advertisers place in our magazine, at no additional charge.

UCANE’s website and social media-feeds are updated daily with the latest industry news.

UCANE’s website makes it easier for members to access information on seminars and meetings. It includes on-line versions of Construction Outlook magazine, as well as a list of all our advertisers and links to their websites.

UCANE continues to increase its outreach to public officials and stakeholders through a variety of social media platforms such as LinkedIn, Twitter, and Facebook.

College Scholarship Program

Thanks to the generosity of our members at UCANE’s Annual Scholarship Auction, and to those members who funded Memorial Scholarships, UCANE once again awarded twelve $2,000 college scholarships in 2022 to deserving students who are

Wrap-Up continued from page 35

the children and grandchildren of UCANE members and their employees.

UCANE members take great pride in our Scholarship Program which in 2022, completed its 48 th year.

UCANE's Many Charitable Endeavors

• Supported Tunnel2Towers in honor of those who served our Country & those hurt in the line of duty

• Supported St. Jude Children’s Research Hospital

• Supported Marisa’s Mission in Memory of Marissa Federico

• Supported Leukemia & Lymphoma Society of MA in honor of the Federico Family

• Supported the Diabetes Foundation in honor of the Benard Family and McCourt Family

• Supported the William and Jane Zoppo Scholarship Fund at Xaverian Brothers High School in memory of Jane Zoppo

• Supported the Joe Andruzzi Foundation to assist Cancer patients in honor of Joe Andruzzi

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

• Supported Pan-Mass Challenge through Joel Lewin (Hinckley Allen, LLP); Tom Descoteaux (R. H. White Construction Co., Inc.); and Bob Magliozzi (L. Guerini Group, Inc.)

• Supported the Alzheimer’s Association in honor of the Richard Pacella Family

• Supported the McCourt Foundation in Memory of Frank and Richard McCourt

• Supported Disabled American Veterans (DAV)

• Supported Mass. General Brigham Hospital

• Supported the American Cancer Society

• Supported House of Possibilities to assist Special Needs Children

• Supported the Cape Cod Times Needy Fund

• Supported the Association to Preserve Cape Cod

• Supported R. H. White Construction Co., Inc. Charity Event

• Big Brothers Big Sisters of Cape Cod

• Supported many other local and national charities throughout the year n

deeply saddened to announce

passing of long time UCANE member and friend, William “Billy” Walsh of W. Walsh Company, Inc., on Thursday, December 1, 2022.

Billy was a lifelong resident of Attleboro. Born on April 11, 1944. He was a son of the late John G. Walsh Sr. and Kathleen (Noone) Walsh.

Bill was a graduate of Coyle High School and proudly served his country in the U.S. Army Reserves, obtaining the rank of Lieutenant. He was the owner and operator of W. Walsh Company, a specialized utility contracting company located in Attleboro, MA. Bill was a longtime member of the Utility Contractors Association of New England, where he served on the Board of Directors and many committees, and was later voted Contractor Member of the Year. He was also a member of the American Water Works Association.

He was an avid fan of golf, hockey, and football. Bill was most enthusiastic watching his grandchildren

play at their sporting events. He enjoyed spending time on the golf course and was an admirer of antique equipment. Bill was a longtime communicant of St. John the Evangelist Church in Attleboro, MA.

He was the devoted and loving husband of Janice (Volpe) Walsh. In addition to his wife, Bill is survived by his three sons, Christopher Walsh and his wife Meredith, Stephen Walsh and his wife Michelle, and David Walsh and his wife Amy; his grandchildren, Nicholas, Abigail, Addison, Shane, Jillian, Lawrence, Bodie, and Jack. In addition to his parents, Bill is predeceased by his siblings, John G. Walsh II, Mary Johannis, Ellen Theresa Wade, and Patricia Ann O’Neil.

The Officers, Board of Directors, Members, and Staff of UCANE extend their deepest sympathies and condolences to the entire Walsh family. Billy’s years of experience and knowledge of our industry brought him the unequaled respect of his peers who feel a deep and personal sadness at his passing. n

Building on Trust & Experience

Our Construction & Public Contracts practice is nationally ranked first-tier in LitigationConstruction by U.S. News & World Report. We add value for our clients through the strong relationships we maintain with key industry participants, awarding authorities, and government agencies.

We specialize in solving complex issues and provide a full range of construction law and dispute resolution expertise including Compliance, Crisis Response & Management, Dispute Resolution, Government & Internal Investigations, Procurement, Risk Management, Surety, and Transactions.

CONTACT OUR TEAM

James J. Barriere Boston/Albany 518-396-3100

Ronald D. Ciotti Manchester 603-225-4334

Timothy T. Corey Hartford 860-725-6200

Joel Lewin Boston 617-345-9000

Christopher W. Morog Boston 617-378-4178

OSHA Investigations and Trench Safety

In a recent Press Release, the U.S. Department of Labor reported that “[t]rench collapses are among the construction industry’s most lethal hazards” with 22 fatal injuries in the first half of 2022. Contractors should expect that OSHA will continue to aggressively enforce trench safety standards.

Just before Thanksgiving, OSHA announced that it had cited an Illinois contractor for allegedly failing to take required measures to protect workers from trench cave-ins. According to the report, an OSHA inspector observed two employees working on municipal water and sewer lines in a 7-foot trench “without adequate cave-in protection or safe ways to get in and out of the trench.” The inspector also observed a company foreman supervising the work in the unprotected trench. According to OSHA, this “demonstrate[d] the company’s lack of concern for federal regulations, industry-recognized best practices and its legal responsibility to protect workers on the job.” In fact, this particular contractor had reportedly been cited previously for trench-related violations. In this case, OSHA “cited the company for three repeat, one serious and one other-than-serious violations” with proposed penalties of $118,962.

OSHA investigations and enforcement actions have seemingly ramped up this year. With the construction industry as a whole already under close OSHA scrutiny, it is as important as ever to ensure compliance with applicable safety requirements. As with other compliance matters, the existence of a written safety policy alone is often not enough. Contractors must be sure that the policy is robust and is taken seriously. The policy should be available to employees, sometimes in other languages in addition to English. Contractors must actively administer their safety policies, and discipline employees in cases of violations. Regular and effective training (by properly qualified personnel) is also a must, along with proper

supervision of worker activity. Contractors should also maintain detailed and organized records of their safety-related practices. Failures to timely or properly produce requested records can lead to further OSHA violations.

These are only a few practice tips to consider in order to avoid or minimize potential OSHA exposure in the unfortunate event an accident occurs. There are numerous other resources available to assist contractors in protecting the health and safety of their workers.

In the event that OSHA does visit a particular Project Site, contractors are strongly encouraged to consult with experienced counsel right away. In many cases, it is useful for counsel to visit the Project Site during the OSHA inspection, interview, and citation process. There are various steps that contractors can and should consider taking in the event that a potential OSHA-issue arises. A single misstep could lead to further unwanted (and potentially avoidable) results. n

Construction & Public Contracts Group, Hinckley Allen, LLP

Christopher Morog Partner Robert T. Ferguson Partner

UCANE STARTS 2023 MEMBERSHIP DRIVE

CONTRACTOR MEMBERS

UCANE Contractors build New England’s infrastructure including water, sewer, and gas pipelines - pump stations and treatment plants - and roads and bridges They build dams, foundations, and perform commercial and residential site development. If a project involves underground work or excavation, you’ll most likely see a UCANE contractor doing it. Our contractors work for public owners and private owners. They are union and open shop. They range from small family businesses to some of the largest contractors in New England. One common theme is that our UCANE contractors are professional, informed about all aspects of their business, and are some of the most successful and well-respected names in the construction business.

ASSOCIATE MEMBERS

UCANE Associate members provide goods and services to our contractor members. Their business success is dependent to varying degrees on the strength of the construction industry and their contractor customers. Associate members provide construction materials such as pipe, gravel, concrete, and all the various items that get incorporated into a construction project. They provide bonding, insurance, legal, accounting, and other services necessary to run a construction business. They provide excavators, loaders, trucks, and the vast array of equipment and tools that contractors need to perform the work. Associate members also provide specialty subcontractor services for our contractors.

Construction Safety & Compliance: An Interview with Harry Carlson

Can you give us your background in Con struction Safety and how you eventually landed with OHS?

I started out 32 years ago as an EMT on board an offshore drill rig. An OSHA and Coast Guard inspection team arrived on the rig and asked the Superintendent “Who is the Safety Officer?” He pointed to me, and a new career began. After the rig, I went to the third harbor tunnel as Safety Man ager for Modern Continental Construction. Overall, I have more than 30 years of safety and risk manage ment experience in a variety of different industries including trucking, construction, marine, petroleum, and distribution. Services I have provided include corporate risk assessments, on site safety consul tation and surveys, safety program evaluations, safety training and program development. I am a certified OSHA 500 instructor for construction and achieved the LEED AP designation in 2008, which I have maintained. I am an active member of the Construction Safety Roundtable of Eastern Massa chusetts and I share my experience there, as well as being a safety trainer for OHS Training & Con sulting, Inc., the Gould Construction Institute, and the Construction Safety Academy.

I believe continued training is essential and I train extensively on crane safety management, confined space, fall protection, lock out/tag out, and many other areas.

What type of clients does OHS Training and Consulting work with and what type of services does the company provide to con -

OHS strives to be a one-stop-shop for clients, both large and small. With a focus in the construction industry, we aide contractors in a large variety of onsite services including safety personnel, first aid and medical response, respirator fit testing, medical monitoring, air monitoring, CPR & First Aid certification training, as well as

We also opened an Occupational Health Clinic,

Director of Safety and Field Operations, OHS Training & Consulting, Inc.

UCANE’s Construction Outlook magazine editors recently caught up with Harry Carlson on a construction jobsite in Boston. Harry is the Director of Safety and Field Operations for UCANE company member OHS Training & Consulting, Inc., based in Brighton, MA. We were able to get a few minutes of Harry’s time to talk about the importance of safety in today’s heavy construction industry.

OHS Total Care, in Brighton in 2020 to further assist our clients with DOT exams, asbestos and lead physicals, and injury care for their employees. OHS’s latest endeavor includes a confined space rescue team that is currently servicing multiple contractors in the Boston area.

What is the Safety Culture at OHS Training & Consulting and what is your role at the company?

We maintain a high-level safety culture throughout the organization driven by ownership and staff. Continued hands on training and relationships created within the industry allow us to stay relevant in the industry.

My role at OHS is working with field personnel to maintain that high-level safety culture, seeking improvement in our safety and health services to clients and providing clients, with safety and health consultation services to reduce incidents.

What are some of the biggest challenges you face in trying to assist contractors in creating a “Zero Incident” jobsite?

There are several challenges that come to mind, most notably are the pressure of schedule, diversity of age, experience or lack thereof, and the culture within an organization.

Another large challenge is getting contractors to embrace culture change rather than priority change. Creating the kind of necessary culture to have a “Zero Incident” jobsite is a process that takes time, training, and effort. You cannot just flip a switch or send out a memo and it’s done.

There is also the additional challenge of overcoming the “excuse” that most accidents are the result of unsafe acts or behaviors on the behalf of the worker and not taking into account when the company system and culture may also be contributing factors.

What advice would you have for high school graduates or “career changers” that might be considering a career in construction safety?

It is a challenging and, to me, a very rewarding career. Safety professionals, especially

in the construction industry, are in high demand. Many colleges offer multiple options in Safety Management Degrees. I would definitely recommend a career in Safety to college students, as well as to “career changers.”

My advice as a new safety employee would be to listen, learn, and understand your role within the organization. You will have an opportunity to learn many facets of an industry and how you can contribute to the betterment of workers’ health and safety, as well as the organizations’ health and safety culture. Always respect the hard work and skill of the tradespeople.

The work can be challenging and sometimes you may have to make unpopular decisions, but so do other supervisors on the project- or in any industry for that matter. One benefit of working in the Construction Safety Industry is that every day you get to see how structures are built and you’ll forever be able to look at the finished bridge, building, or roadway with pride knowing you had a part in it. n

End of the Year Housekeeping

It's the end of the year, and it's time to do some housekeeping. How do you look back and assess your company's performance? How do you evaluate your safety department and personnel? What you do to close the year will help set the table for next year and beyond.

Most companies' safety key performance indicators begin with leading and lagging indicators. The car analogy best explains the differences between leading and lagging indicators. When driving a car, you spend most of your time looking through the windshield (leading indicators) and less time looking through the rearview mirror (lagging indicators). You need a combination of both to make it down the road safely. There are no set-in-stone rules for the ratio of leading to lagging indicators or what information you should be tracking. Every company is different, and the challenge is identifying which indicators you should use to align your safety program with your organization's goals.

Every company sets goals at the beginning of each year and reflects on them as the year ends to see where they stand in relation to meeting those goals. Primarily those goals are targeted toward the financial growth of the company. A company with a strong safety culture will also set its own safety goals. You may say to yourself that setting a goal is easy and that you do it all the time; however, you have probably done it wrong. Here are the five (5) elements to set a good goal, also known as the SMART goal.

1. Write specific goals. The more focused your goal is, the more you will find yourself motivated to accomplish it.

2. Goals should be measurable. As you write your goal, you must ensure that it has built-in markers for what it would mean to achieve it. You should be able to break the goal down into specific mile -

stones to track your progress.

3. Make your goals actionable. Use action verbs to help ensure that your goals define what you will do. This type of goal will prompt you into action.

4. Risky goals are better than playing it safe. This means making goals that will stretch and challenge you and your company. If you set goals you know you can achieve, you aren't forcing yourself to rise to the challenge.

5. Smart goals must be timebound. The most successful goals are those with a sense of urgency. You need to time-key your goals with a deadline, frequency, or time trigger.

Are there areas to improve on? Identifying the company's weaknesses and looking for ways to im-

Patrick W. Saltmarsh Corporate Safety Director J. Derenzo Companies

Tim Hunt, CHST Dir. of Envt’l, Health and Safety W. L. French Excavating Corp.

prove on those weaknesses should be a focus at the end of the year. Are there programs that are missing that could be purchased or introduced? Some typical areas a company could continually improve upon are; training, subcontractor management, internal project management, and meetings. When it comes to training, it's finding ways to make it more meaningful and relevant. Finding ways to make training stick and not just be something done to check a box. Subcontractor management is key to reducing overall risk on a project. Finding a way for your company to elevate its subcontractors' performance will result in a win-win situation for all. No one likes to feel like they waste time. Time is such a precious commodity. Everyone has had those meetings that should've been an email; however, getting face time is essential. We have learned how to use virtual conference technology best, and sometimes a quick video meeting will suffice. There are other times when a good old-fashioned in-person meeting is required. No matter what type, making the most of your time and getting things accomplished in the meeting is key to a successful one.

There is no right or wrong way to close out the year. If you don't have a process set, this is an excellent year to start. Remember, each company is different, and what works for one company may not be what is needed for another. n

2023 Scholarship Applications Available January 1, 2023

UCANE to Award Twelve $2,000 Scholarships

WHO IS ELIGIBLE TO APPLY?

• Any child or grandchild of a UCANE member OR an employee of a member in good standing.

• The applicant should be a high school senior who will be enrolling full time in an accredited two- or four-year academic institution for the year beginning in September 2023 OR a current full-time college student who has not previously received a UCANE s cholarship.

HOW WILL THE APPLICATION BE JUDGED?

Twelve $2,000 scholarships will be awarded. Two of the 12 scholarships will be awarded to applicants pursuing a construction related degree. There will be a question on the application to indicate if you believe you are eligible for these scholarships. The other 10 scholarships are open to all other courses of study. Applications are judged and winners are selected by independent outside educators. Selection will be based on the overall worthiness of the applicant by considering:

1. Scholastic achievement;

2. Interest and effort in preparing for your vocation;

3. Extra-curricular activities at and away from school, including community and religious service;

4. Difficulty of course curriculum and career objectives;

5. Personal recommendations;

6. Thoroughness of the completed application, particularly the essay

HOW WILL THE CONFIDENTIALITY OF THE APPLICATION BE PROTECTED?

E ach application 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. Please be certain to indicate the UCANE firm where you, your parent, or grandparent is employed when applying. The applicant’s name must not appear on any part of the application or attached transcripts and recommendations. After the winning applications have been selected, the envelopes with those corresponding numbers will be opened to identify the award recipients.

WHAT MUST ACCOMPANY THE APPLICATION?

1. A transcript of high school or college grades through the latest period prior to April 15.

2. A letter of recommendation from the principal or faculty advisor/academic advisor.

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

IMPORTANT - PLEASE NOTE:

In the event the applicant receives a full scholarship from the college of his/her choice, or from any organization, civic group, etc., the UCANE Scholarship will be awarded to another applicant. Applicant’s parent/grandparent must work for a company in the New England Region.

Applications must be received in the UCANE office no later than April 15, 2023. If you have any questions concerning the completion of this application please contact:

Utility Contractors’ Association of New England, Inc. 300 Congress Street • Suite 101 • Quincy, MA 02169 Tel: 617.471.9955 • Email: jmahoney@ucane.com

No Guarantee of a Recession: Dodge Data Presents 2023 Construction Outlook

Dodge Data & Analytics Chief Economist Richard Branch delivered the company’s 2023 construction industry outlook, saying there is no guarantee of a recession. Avoiding one, however, will require taking a "narrow road."

Despite ongoing inflation, the U.S. economy has experienced many bright spots in 2022. That includes the construction industry, which has seen record-low single-family vacancy rates this year and a burgeoning crop of planned commercial projects for 2023. Avoiding a recession in 2023, however, will require taking a narrow road, one economist said this week.

Dodge Data & Analytics Chief Economist Richard Branch delivered the company’s “On the Razor’s Edge: Will the U.S. Economy Enter Recession and How Will Construction Starts Respond in 2023” via an online webinar on November 15. The analysis was based on several data categories the company tracks throughout the year. Some of that outlook was based on historical data through the end of September.

Looking at the big picture – or skimming through any news site – it’s clear there is a lot going on in the world. From election results, to bitcoin, to tech layoffs, it can be a challenge to predict what will happen next with the U.S. economy.

Not Like the Others

Former Boston Federal Reserve President Eric Rosengren told CNBC last week that the U.S. is likely headed for a mild recession going into 2023. Branch told his online audience on Tuesday that a recession may not happen, and if it does, it will not be as severe as the Great Recession of 2008 or the downturn of 2001.

“The key thing here to remember I think, in that downside recession is we view this as fairly V-shaped here. We don't view this as anything similar to what happened during the Great Recession or any cyclical periods in the past,” Branch said. “A couple of key reasons I would say that we feel this way is No. 1, the banking system is in great shape. And No. 2, the housing market is woefully undersupplied.”

There are a handful of issues that Branch is watching and considers potential recessionary events:

• Increased China and Taiwan tensions or conflict

• A real further violent escalation in Ukraine and Russia

• Production cuts for OPEC plus, that push oil prices to $115-$120 a barrel

• Rail strike

“We're walking the razor's edge here,” Branch said. “In our estimation, there is a very, very, very narrow path to avoiding a technical recession in 2023.”

Inflation Determining the Path of the Economy

Inflation is calling the shots when it comes to the risk of recession, Branch said. The Consumer Price Inflation and Producer Price Index have shown slight improvements so far during the past month, which may point to improving economic conditions, Branch said.

“Now, of course, one month do not a trend make,” he said. “But I think there's certainly some good news here on the horizon.”

He expects the Federal Reserve to raise rates another 50 basis points in December and 25 more in January. The Federal Reserve doesn’t meet in February, so the next chance to raise rates will be in March, when he expects them to increase rates another 25 points.

“By that point, I think as long as we continue to see improvements in core inflation, they'll raise one more time in March, and that's it. Full stop,” Branch said. “Again, that’s assuming we continue to see improvements in core inflation. So by the time we're in March next year, the federal funds rate will be in the range of 4.25% to 4.75%. Now, of course there's a lag impact from rising interest rates to the economy.”

If the Federal Reserve needs to continue raising rates, then the outlook for the remainder of 2023 sours.

“Q1 would go deeper negative, Q2 would flip over into negative, Q3 would come pretty close to the zero line but stay positive and Q4 would come down, as well,” he said.

Dodge Construction Network

Labor Shortage Will Likely Ease Recession

One of the factors that will help the U.S. avoid a severe recession is the ongoing labor shortage, Branch said. The U.S. economy overall needs about 4 million workers, says the U.S. Chamber of Commerce and the construction industry is short roughly 440,000 workers, according to McKinsey. These openings persist despite recent tech industry layoffs, including Facebook parent company Meta’s cut of 11,000 workers and Twitter’s 7,500.

“We all know how critically short of labor we are, not just in the construction industry, but in the economy as a whole. What I think happens here is that firms will be so afraid or concerned that if they let go of too many workers, they won’t get them back when the economy starts to recover,” he said. “Because of that, I don’t think job cuts and job losses here in the first half of next year, are going to be substantial enough to really push the economy that far south.”

He acknowledged that there will likely be some job losses.

“There will be job cuts, for sure the unemployment rate will go up, for sure,” Branch said. “But we think in the first six months of next year, that job creation is essentially zero. So compare that say to (the recessionary periods of) 2007/2008; compare it to 2000/2001. We think this will be pretty mild by comparison. And it’s that stability in the labor market in the first half of the year that allows the economy to flip back into positive territory in the second quarter, therefore avoiding, you know, a textbook technical recession of two consecutive quarters of negative GDP.”

If inflation does not improve in Q2, the Federal Reserve will continue to raise rates, he said.

“The Fed will keep going here to fight inflation and to get it down, even if they have to break the back of the U.S. economy,” Branch said.

In the construction industry, a lack of workers will limit how many projects owners and developers can take on.

We’re going to be right back in the same situation of skilled labor shortages, if we forecast out over

five years,” he said. “As I look at that five-year horizon, I don’t see a real significant improvement here in attracting skilled labor into to the industry; I think it’s moving forward, we’re making progress. But I think over the next five years, what this is going to do is continue to put a ceiling on the amount of work we can get done in the industry, of course barring technological changes and barring productivity enhancements.”

Planned Construction Starts at 15-Year High

Another bright spot in the economy is the number of planned construction projects for 2023. Despite fears of a recession, developers and contractors are moving ahead with projects, Branch said. The Dodge Momentum Index tracks non-residential construction projects from their earliest stages to groundbreaking.

“If you go back to the early days of the pandemic, and 2021, (the index) hit bottom,” Branch said. “Ever since then, it’s been rising pretty steadily. It’s been volatile here and there, but it has been trending upwards noticeably. Whether you’re looking at the commercial components, your income property types, like the offices and hotels, warehouses, whatnot, or whether you’re looking at institutional buildings, your education and healthcare, we’re sitting here near 1415 year highs in the Momentum Index.”

Branch said before the Great Recession, developers continued to plan projects, but this time feels different.

“If we go back in time, and we look at 2007-2008, developers and owners did the very same thing right up until the technical recession started. And we noticed then that planning and developing really slowed down. I think it’s different this time around,” he said. “I think because this is not such a clear case of how

Dodge Construction Network

Guarantee continued from page 53

a slowdown will impact that the market, that it’s not 100% certain that we’ll go into recession in 2023, I think this is going to mean developers are going to keep putting projects into the queue here. I expect this will soften a bit over the next few months. But I don’t think we’ll see the same kind of precipitous declines here that we saw back during the Great Recession.”

Pricing indexes for materials are slowly improving, after peaking in late 2021, early 2022, Branch said.

“I think pricing is going to remain challenging as we go int,o especially, the first half of 2023,” he said. “But I think we’ll start to see some improvements here in the back half.”

As demand continues for some types of construction projects throughout 2023, there will be sustained pressure on pricing, he added.

Residential Outlook

Branch said it’s important to take a look at the outlook of the residential market, even if owners and developers are only focused on commercial and industrial. Residential building leads to commercial construction, he said.

“ There’s a strong linkage here. I’ve always viewed the construction cycle here as a train. Residential is the engine of that train. Single family really is the engine of that train. Single family leads the construction sector into decline, and it leads it in recovery,” he said. “If you want to understand organic growth in most of the non-residential building sectors, and even into infrastructure, you need to understand the comings and goings of the residential market.”

Branch said he expects increased pricing to impact the residential market in 2023.

“The labor market is very solid; income growth is okay. The Millennial age bracket is in the prime home buying years, but that lack of supply has pushed home prices higher and with higher mortgage rates, that has pushed housing affordability to the worst it’s been in almost 15 years.”

After March, Branch expects mortgage rates to stabilize, although supply will remain limited, keeping prices high.

“This is still a pretty robust market, it’s just a lot weaker than we saw in 2021,” he said. “Assuming the world follows our script, the bottom of that trough of the single-family market is probably in late Q1, early Q2. We’ll see mortgage rates stabilize, we think that allows the housing market to stabilize in Q2, and

continued on page 56

then there will be fairly small improvements as we get through the end of the year. We’re still looking at another 6% decline in the housing market, but we do think that by the time we’re at that point next year that we’ll start to see some improvements in the construction side.”

Multi-Family Market

Demand for apartments, condos and townhomes is high, in part because single-family homes have become more expensive and less available, Branch said. That’s led to the best year for multi-family construction since 1986, at 16% with 796,000 units.

“Vacancy rates around the country are near record lows; it’s really, really tight,” Branch said. “What happens here as the economy starts to slow down, household growth slows down, we see particularly younger generations cohabitating more.”

Because of increased cohabitation and economic pressures, he expects a 2023 multi-family decline of 9% or 723,000 units

Non-Residential Building Outlook

Construction projects in the institutional, education and healthcare markets are returning to a prepandemic pace, Branch said. But commercial, office and hotel are flat, as remote work has reduced the demand for office space overall, he added.

“We know the hotel sector is recovering, but office continues to be weak. So there could be a demand element here saying we’re going to slow down these projects going through planning until we’re sure that market conditions are ripe enough for us to break ground,” he said.

With infrastructure projects, such as water and sewer, project planning cycles are improving. Roads and bridges projects remain flat, likely because of slowed funding on the federal level for the Infrastructure Investment and Jobs Act, which will provide $350 billion for highway programs for five years.

“We also need to consider here the fact that the appropriation process in Washington has slowed down,” he said. “There was a delay in getting the fiscal year 2022 funding approved; there already is a delay getting the fiscal year 2023 funding approved for infrastructure projects. So that could be influenc -

“Even though we’re declining here and single them in multifamily 2023 from a level perspective, is still a pretty robust market,” he said. continued on page 57

Dodge Construction Network

No Guarantee continued from page 56

ing as to the projects getting into the queue on time. But they’re slowing down, maybe before the bid cycle, just because that funding hasn’t been appropriated and flowed from the federal government down to the state and local communities.”

Additionally, quite a few bond measures for new construction projects were approved across the country on election day, which will further activity in the sector.

“There is a resounding positive that has come from the election in terms of local bond measures supporting construction activity,” Branch said. “There are a lot of bond measures here across a broad range of project types, from education to roads and bridges, to clean energy to water and sewer. This will certainly support the public side of the construction sector as we move forward into 2023.”

Retail Market

Hand-in-hand with a strong single-family market is a robust retail market, Branch said.

“There’s a strong relationship here, between sin -

gle family and retail, it’s about a year lag between groundbreaking of single family to groundbreaking of retail,” he said. “As we move into 2023, if we think back to what’s happening in the residential sector in 2022, single family declining multi-family and will be declining next year. That’s going to slow retail construction starts down here, again, 4% in nominal dollar terms, if you converted this to constant dollars to take inflation out, you’d be looking at a load of bad single digit decline here in single family, nothing like what we saw back during the Great Recession.”

Data Centers a Win for Office Sector, Warehouses Not So Much

The largest commercial projects in 2022 have been data centers.

A year ago, the largest commercial projects included several Amazon warehouses. Now, only one or two Amazon warehouses make that list.

“We’ve certainly started to see a shift in that market,” Branch said. “As we move forward into the warehousing sector, I think this is where we start to see the more significant declines in commercial.” 226 Nicks Rock

continued on page 58

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Dodge Construction Network

According to the outlook report, 2022 is the peak year for warehouse construction.

“We’ve been seeing this now for the better part of the year, as we’ve been watching those projects come into planning essentially flatten out, particularly Amazon contracts,” he said. “Now Amazon bought onto our theory this year, when they said, ‘Yeah, we overfilled the market, sorry about that. We’re calling it and pulling out of the market.’ That is going to drive activity lower here.”

With Amazon making up 16% of warehouse construction, it will leave a mark when the e-commerce giant stops building distribution centers.

“When you see that size and market share step out, activity will come down. Now why do we know this? Because we’ve seen it before,” Branch said. “Strangely enough, Walmart is 16% of the retail sector. When Walmart stopped building supercenters back about a decade ago, the whole retail sector took a pretty hard step down. Now, we don’t think the same is going to happen here because there’s not the same retail dynamics. There will still be demand for warehouses over the next several years, particularly the high-end, refrigerated warehouse buildings.”

Demand for office space remains uncertain, he

said. Based on data from Kastle Systems, which manages key access systems for office buildings, occupancy has been flat in recent months. Occupancy is at about 47% in the top 10 markets in the country.

“Vacancy rates are heading up; they’re about 30 basis points higher than they were in the third quarter of last year,” Branch said. “The outlook here really depends on what we believe for return to office.”

With labor as tight as it is, Branch said he believes workers will have the power to remain remote if they choose.

“I don’t think there’s a lot of support for strong buildouts over the next couple of years,” he said.

Renovation work made up 30%-35% of office construction in 2021 and 46% in 2022. New office construction in 2023 will be “pretty bleak,” he said.

Hotels Market

Post-pandemic “revenge” travel has fueled an uptick in hotel construction.

“Depending on what side of the fence you’re on here, if you’re looking to book a hotel room, that might not be such good news, but if you’re concerned about financials for hotels, that’s great news, and we’re seeing those financials have certainly improved,” Branch

continued on page 59

No Guarantee continued from page 58 said. “That has certainly led some more hotel construction this year.”

He expects mild gains for the hotel construction market in 2023, with activity focusing on upscale and luxury properties.

Manufacturing for the Win

2023.

“One of the big projects that we’ve been seeing come back, of course, are chip fabrication plants. In addition to that, we’re seeing EV battery plants, EV plants, we’re seeing food manufacturing plants return. We’re seeing steel mills, lumber mills; really, when we think about it, here, it’s the greatest hits of the supply chain,” Branch said.

The prediction is for $89 billion in manufacturing construction for 2022 and $51 billion in 2023.

Even though the 2022 rate is higher than the expectation for 2023, the 2023 estimate remains historically strong. continued on page 60

Dodge

No Guarantee continued from page 59

“In fact, if not for 2022, that $51 billion would be a record level of construction in terms of nominal dollars, or even its square footage, which is pretty much as real as you get. You need to go back to the early 1990s to see the kind of square footage we expect will break ground in 2023,” he said.

Institutional Construction

Manufacturing, as well as institutional construction, will help lend stability and insurance to the construction industry in 2023, Branch said.

More than half of institutional construction will come from education, mostly in terms of new laboratory space. Generally, though, K-12 and college construction will remain flat next year.

With healthcare construction, Branch said he expects a slight uptick in walk-in clinics in residential areas, which will encompass 40% of activity, while inpatient facilities will be about 38% and nursing homes will come in at about 22% of the activity in that sector for next year.

The transportation sector will see 110% growth in 2023. Most of that can be attributed to the multibillion-dollar improvements at John F. Kennedy International Airport in Queens, N.Y., but also includes

runway and terminal projects.

Branch said he doesn’t expect election results to impact Infrastructure Investment and Jobs Act projects much. There may be a slight delay in funding approval, or a slight reduction in funding, but overall, he expects those projects to move forward.

Looking Ahead

This week, Dodge Data & Analytics also published its Dodge Momentum Index (DMI) for October. Some of its highlights include:

• DMI improved 9.6% continuing a steady increase

• On a year-over-year basis, the DMI is up 28%. The commercial component was up 29% and institutional planning was 25% higher

• A total of 15 projects with a value of $100 million or more entered planning in October

Other analysts have recently published their upcoming outlooks, as well.

For example, the National Association of Home Builders issued a report on Nov. 17 that says multifamily developer confidence declined significantly in the third quarter of 2022. According to Eric Lynch, continued on page 61

Go Beyond Tracking

No Guarantee continued from page 60

“Even though the number of multifamily units under construction is at its highest level since December of 1973 and multifamily construction spending continues to increase, developers are starting to see the signs of a slowdown as evident by this quarter’s results. They are citing the high cost of materials and land along with weakening financing conditions given the recent monetary policy of the Federal Reserve as the main reasons for this decline in confidence, impacting affordable housing projects the most. Based on these factors, NAHB is now projecting a significant decline in multifamily starts in 2023.”

Meanwhile, ACT Research reported on November 17 that commercial vehicle market conditions continue to improve, despite interest rate hikes.

“For now, business activity in the truck industry rolls on, seemingly unphased by higher interest rates,” said Eric Crawford, ACT Research vice president. “That said, we expect this dynamic to shift in 1H’23, as the Fed continues its aggressive push to subdue inflation.” He continued, “Cracks in the economy are becoming more evident: The impact of higher rates has begun to slow activity in the housing sector, and large layoffs have started in the tech sector.”

However, the Equipment Leasing & Finance

Foundation released its November 2022 Monthly Confidence Index on the same day. The index reports a qualitative assessment of both the prevailing business conditions and expectations for the future, as reported by key executives from the $1 trillion equipment finance sector. Overall, confidence in the equipment finance market is 43.7, a decrease from the October index of 45.

“There continues to be uncertainty in the markets as a result of inflationary pressures, rising rates, and the unknown impact of mid-term elections,” said Aylin Cankardes, president of Rockwell Financial Group. “Due to ongoing challenges from supply chain delays, we are seeing increased demand for used equipment. Overall, our customers have been very resilient and underlying growth has been robust so we anticipate a strong finish to 2022, particularly in the energy transition and sustainability finance sector.”

The report is based on executive surveys about their businesses. Here are some highlights: • When asked to assess their business conditions over the next four months, none of the executives responding said they believe business conditions will improve over the next four months, unchanged from October. 46.4% be -

lieve business conditions will remain the same over the next four months, down from 62.5% the previous month. 53.6% believe business conditions will worsen, an increase from 37.5% in October.

• 10.7% of the survey respondents believe demand for leases and loans to fund capital expenditures (capex) will increase over the next four months, an increase from 8.3% in October. 67.9% believe demand will “remain the same” during the same four-month time period, an increase from 66.7% the previous month. 21.4% believe demand will decline, down from 25% in October.

• 14.3% of the respondents expect more access to capital to fund equipment acquisitions over the next four months, up from 4.2% in October. 64.3% of executives indicate they expect the “same” access to capital to fund business, a decrease from 87.5% last month. 21.4% expect “less” access to capital, up from 8.3% the previous month.

• When asked, 32.1% of the executives report they expect to hire more employees over the next four months, up from 29.2% in October. 64.3% expect no change in headcount over the next four months, a decrease from 66.7% last month. 3.6%

expect to hire fewer employees, down from 4.2% in October.

• 3.6% of the leadership evaluate the current U.S. economy as “excellent,” a decrease from 8.3% the previous month. 75% of the leadership evaluate the current U.S. economy as “fair,” up from 66.7% in October. 21.4% evaluate it as “poor,” a decrease from 25% last month.

• None of the survey respondents believe that U.S. economic conditions will get “better” over the next six months, unchanged from October. 28.6% indicate they believe the U.S. economy will “stay the same” over the next six months, a decrease from 41.7% last month. 71.4% believe economic conditions in the U.S. will worsen over the next six months, an increase from 58.3% the previous month.

• In November 28.6% of respondents indicate they believe their company will increase spending on business development activities during the next six months, up from 25% the previous month. 64.3% believe there will be “no change” in business development spending, down from 70.8% in October. 7.1% believe there will be a decrease in spending, an increase from 4.2% last month. Reprinted with permission from Dodge Data & Analytics. Written by Gigi Wood n

Ben Cavallo C&S Insurance Agency

Four Risks Facing Electrical Contractors + Insurance Considerations

Electrical contractors play an essential role in the construction industry, with responsibilities that include designing, installing, maintaining, and repairing electrical systems across various applications. From residential homes, to outdoor public spaces, to large-scale power plant facilities, electricians encounter a range of situations and risks on a daily basis. Below is a list of the top four hazards electrical contractors face, and which insurance coverages can best help minimize any potential liabilities.

Injury

Personal injury is one of the most common perils electrical contractors face while carrying out their daily work. According to the United States Occupational Safety and Health Administration (OSHA), electrical contractors are at high-risk for the following injuries:

• Ergonomics: Risks include musculoskeletal disorders that occur due to repetitive movements, poor tool design, and improper lifting and handling techniques.

• Slips, trips, and falls: Because electricians must often navigate environments that feature high places, uneven terrain, or rough ground, they face greater risks for injurious falls.

• Motor vehicle accidents: Electrical contractors are often on the road and therefore face increased risk for motor vehicle accidents, particularly rear-end collisions.

• Electrocution: As they deal with electrical components in nearly every aspect of their job, electricians face significant risks when it comes to electrocution.

Being injured on the job not only brings with it the obvious danger of being harmed, but it can also lead to stiff legal and medical expenses that could threaten an electrical contractor’s business and life.

Equipment Breakdown & Theft

Electrical contractors often rely on expensive specialized tools and equipment that are sometimes inconvenient to remove from the jobsite each day. When these tools break down, replacements or repairs can be very costly and take time to replenish. Furthermore, while keeping industry equipment on-site outside of working hours can save time and hassle, it also leaves electricians vulnerable to theft. With electrical equipment fetching high prices on the black market, theft has become a common challenge.

Liability

Electrical contractors carry a great deal of responsibility when it comes to the safety and protection of em-

ployees, customers, and the property being serviced. Without proper insurance coverage, electricians face exceptional financial and legal risks in the event of damage or serious injury that could occur as a result of their work. With liability insurance, contractors are protected should their electrical work cause bodily injury or property damage to someone else or someone else's belongings.

Property Damage

In addition to risks on the jobsite, electrical contractors are also vulnerable to property damage when it comes to their own workshops, business structures, and equipment. Commercial property insurance can help cover electricians owned or rented buildings, as well as work-related equipment, such as power tools, batteries, and more.

Recommended

Insurance

Coverages for Electricians

When you work as an electrical contractor, it is critical that you have the insurance coverages you need to keep yourself, your workers, customers, equipment, and property safe in the event one of the risks we mentioned becomes a reality. Each of the following insurance options helps to minimize your

legal and financial risk:

• General liability insurance

• Commercial property insurance

• Business income insurance

• Workers’ compensation insurance

• Commercial auto insurance

• Umbrella insurance

If you have questions about your current coverage, or would like to update your policy, reach out to your local insurance agent today to ensure you are fully protected. n

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Take a Tech-Driven Approach to Tracking Labor Hours

Labor is at or near the top of the list of costs for most utility construction projects. That makes accurate, timely data on employee hours essential for contractors trying to keep work on schedule and on budget. Software technology helps, and the best systems check three boxes: they accommodate crew-based and individual employees; make it easy to track labor in the context of other productivity variables; and they deliver actual-versusplan reporting in a format that is easy to interpret and use in the field.

Getting Payroll Right

Specialized software has big advantages over the paper or spreadsheet-based processes many contractors continue to rely on for tracking time. Electronic logs make it faster and easier to capture hours in the field. They also have built-in capabilities and checks that make it easy to ensure that hours and cost codes are assigned to the proper jobs.

Once hours are recorded electronically, they can be transferred directly to the accounting and payroll system. This eliminates the extra steps and manual, redundant data entry that increase staffing requirements and introduce opportunities for errors. Finally, with electronic information from a specialized system, contractors can generate comprehensive reporting and dashboards necessary for timely, data-driven decisions automatically, without extensive, manual number crunching.

Getting Data Right Away

Waiting for a report from an accounting or ERP solution in order to review the status of a current project versus plan is also common. The obvious drawback is lag time. Accounting reports are typically run monthly. That means managers and execu -

continued on page 68

Software applications make it faster and easier to track labor hours in the context of other costs and produce daily reporting versus plan.

Greg Norris, B2W Software, Inc.

tives may not find out about cost overruns until it’s too late to make changes on the jobsite to correct or recover them.

Dedicated field tracking applications complement accounting capabilities. They make it easy to record and approve labor hours where and when they happen on electronic field logs or work logs. Importantly, these applications also provide daily reporting, often in a more streamlined, field-centric format than accounting systems. Simple bar graphs may alert a foreman or project manager when certain aspects of a job are over or under budget, without forcing them to decipher a detailed, numberheavy accounting report.

Daily reporting from the performance tracking system won’t be 100-percent accurate. Final invoices from material suppliers or subcontractors received later, for example, could vary slightly from the numbers entered in the field and require reconciliation in the accounting system. Still, what reporting based on the field logs lacks in to-the-penny accuracy is more than made up for in immediacy.

Advantages of One System

A comprehensive system that allows contractors to track individual and crew-based employees, and to track labor together with production quantities and material and equipment utilization, gives contractors two important advantages.

First, having crews as well as independent employees, such as truck drivers or equipment operators, work on and have their hours accounted for within the same job is not an uncommon scenario. While crew activities are typically captured on field logs, hours and production quantities for independent employees can present a challenge.

When contractors use separate systems for crew-based and individual employees, data from those two systems must be combined to get a full picture of where a project stands. This adds extra data entry and analysis steps to the reporting process, delaying reporting and introducing opportunities for errors.

accounting modules that record labor only will show a contractor whether those costs are running higher or lower than expected. That data, however, is usually only relevant in the context of production quantities accomplished and the costs incurred for other aspects such as materials and equipment.

Labor costs could be low because there are not enough people on the job and productivity is way behind schedule. Conversely, being over budget on labor might be acceptable if a project is ahead of schedule or the added labor has reduced other expected costs.

Don’t Overlook Ease of Use

Tracking labor hours is imperative to effective operational and financial management. Advanced performance tracking software brings improved accuracy, timeliness, and automation to the process, but it’s important to make sure the technology is also advanced in terms of ease of use.

The best performance tracking solutions are designed specifically for use in a construction environment. They strike the important balance of delivering the reporting that managers and executives need while also making life easier – not harder – for end users responsible for capturing that data in the field. n

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Provincetown Sewer ArticleS

SAil through S PeciAl town M eeting

PROVINCETOWN – A packed auditorium approved five sewer-related articles nearly unanimously at a recent special town meeting. The articles authorized borrowing $75 million for sewer expansion, modernizing the existing sewer system, ending the town’s checkerboard sewer district, altering Route 6 to combine two town-owned lots for a satellite treatment facility, and allowing the use of a recreation field for subsurface wastewater disposal.

One article on using Land Bank funds to purchase 1.9 acres on Commercial Street passed easily. So did an article authorizing the town to fund $145,000 to develop a lead service line inventory. New EPA guidelines require all public water systems to complete such an inventory by October 2024.

An article to amend town zoning bylaws was indefinitely postponed.

Town Manager Alex Morse took about an hour to explain the details of each sewer article, why they were necessary and what the costs would be. He gave a tentative timeline for the project, and stressed that without those measures, the town's development would be hog-tied.

Morse called the five sewer articles distinct and different but all interrelated. Their passage would protect public health, double the number of potential sewer users, reduce the danger of harbor and environmental degradation, and would advance the town’s housing goals.

He called it the most significant project of this generation, one that’s been years in the making.

“All property owners need to take responsibility to take care of their waste,” Morse said. “This is about access, choice and fairness.”

He stressed the need for modernization and expansion, the availability of money that the town and

townspeople can access, and the real threats to the environment and the town’s development should nothing be done. And he brought up the vacuum sewer emergency shutdown in August as a reminder of what can happen if the town doesn't act.

The downtown vacuum sewer system was designed to handle 350 properties 20 years ago. It now serves 575 properties. New equipment, pumps and repairs are needed to keep the system’s infrastructure reliable. The town has access to $4.4 million in Cape Cod and Islands Water Protection Fund grants, with additional grants from the Municipal Vulnerability Preparedness Program.

The most significant article was the $75 million to extend gravity sewers to the remaining properties in town and improve wastewater treatment and dispos-

Spotlight on Cape Cod continued from page 69

al capacities. It will provide for 20 years of managed growth. An estimated 40% will come from grants, subsidies, Chapter 90 paving funds and rooms tax receipts. An estimated $45 million will come from betterments assessed on properties.

Connection costs will vary according to property layout and distance to sewer lines. Estimates range from $2,500 for a simple installation to $15,000 for a complex one.

Betterment costs will be based on the number of bedrooms, with adjustments for those properties requiring grinder pumps. A per-bedroom betterment cost of $7,150 can be paid in full or spread over 20 years.

People have choices, Morse stressed. They can replace on-site systems and delay their connection and betterment costs, or they can connect and start paying. He said a vast majority of property owners want to connect based on survey data.

“About 250 properties in the current sewer area want to connect now and have been interested for years,” he said.

Some property owners might want to replace onsite systems rather than connect to sewers, but they must get approval from the health department, and comply with any new MassDEP regulations, including denitrification requirements.

“Those are only going to get more difficult and expensive,” Morse said. “Properties will essentially need their own treatment plants in their yards. We’re a very dense community and you’re not going to be able to fit these systems there.”

There will be a sewer stub at every property.

“When something happens to an onsite system, you have to call somebody,” Morse said. “If you’re connected to town sewer, you have a whole cadre of responders.”

Passage of a home rule petition to use Motta Field for wastewater disposal drew the most pub -

lic comments. It was amended to read that subsurface wastewater disposal would be “post treatment.”

One resident objected to the location of the planned satellite treatment facility on a soccer field along Route 6 because of its proximity to homes. Morse said the town must ensure MassDEP standards, and 500-feet distance was in line with those standards. He said the soccer field location was the best possible one for the town because of conservation, residential and environmental concerns.

With authorization from town meeting, Morse said Provincetown will continue to lead the way on climate resilience and wastewater treatment.

Written by Denise Coffey. Reprinted from the Cape Cod Times. n

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C. N. Wood Co., Inc. 22

Woodco Machinery, Inc. 2

JCB HYDRADIG 110W. The first wheeled excavator and tool carrier designed for purpose and without compromise. JCB is the first to move the engine, tanks and ancillaries to the chassis, making the JCB Hydradig 110W first for visibility, stability, maneuverability, mobility and serviceability.

At the heart of the Hydradig 110W is JCB innovation; its features and their benefits will transform the way you and the whole industry works. BECAUSE UPTIME MATTERS – ALWAYS.