JAN | 2022
Federal Infrastructure Bill Passes: UCANE Members Ready to Do the Work
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President-Elect BRIAN COONEY
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Treasurer CHRIS VALENTI
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Secretary QUERINO PACELLA
RJV Construction Corp.
BOARD OF DIRECTORS MARCELLA ALBANESE
Albanese Brothers, Inc.
VINCENT BARLETTA
Barletta Heavy Division
MIKE BISZKO, III
Biszko Contracting Corp.
CALVIN BRANDFORD
JANUARY, 2022
IN THIS ISSUE
5 President’s Message: Time to Take Advantage of the Opportunity Ahead
7 Legislative Update: • New Regulations to Reduce Emissions, Advance Market for On-Road Clean Trucks Enacted • KPMG: State’s UI Still Running a Deficit • New Boston Mayor Announces Several Cabinet Reappointments as Her First Full Term Officially Begins • News in Brief 19 Legal Corner: Massachusetts Office of the Attorney General Continues Aggressive Enforcement of Construction Industry 22 A Summary of the Bipartisan Infrastructure Bill HR 3684 29 U.S. Department of Transportation: Employment Impacts of Highway Infrastructure Investment 30 Infrastructure Investment and Jobs Act HR 3684
ANDREW DANIELS
32 Infrastructure Investment and Jobs Act/Environmental Protection Agency/State Revolving Fund (SRF)/Estimated 2022 Allotments to NEW ENGLAND States
GEORGE DeFELICE
35 Infrastructure Bill Extends and Expands “Buy American” Rules
CHB Excavating
J. Derenzo Company DeFelice Corporation
JERRY GAGLIARDUCCI
Gagliarducci Construction, Inc.
JOE GIOIOSO
P. Gioioso & Sons, Inc.
DAN HORGAN
R. H. White Const. Co., Inc.
LISA FRENCH KELLEY
W. L. French Excavating Corp.
JIM MADDEN
Palmer Paving Corp.
ROBBIE OUR
Robert B. Our Co., Inc.
RICHARD PACELLA, JR. R. M. Pacella, Inc.
BRIAN RAWSTON
Jay Cashman, Inc.
FRED ROGERS
Scrap-It, Inc./Minichiello Bros., Inc.
ERIK SVEDEN
C. N. Wood Company, Inc.
JORDAN TIRONE
DeSanctis Insurance Agency, Inc.
DAVID WALSH
Pawtucket Hot Mix Asphalt
JEFF MAHONEY
Executive Director
37 Under the Hard Hat: An Interview with UCANE Board Member Robbie Our, Robert B. Our Company, Inc. 40 OSHA Releases FY21 Top 10 Violations List 45 OSHA Fact Sheet: Occupational Safety and Health (OSHA) Inspections 51 Safety Corner: What Will You Do in 2022? 55 Spotlight on Cape Cod: Barnstable Town Council Approves Another $7.3 Million for Sewering 59 Technology in Construction: Develop the Right Cost Code Structure to Improve Reporting, Analysis, and Performance 65 2022 Scholarship Applications Now Available 67 National Grid Tips of the Trade: Pipeline Safety 69 Estimating is Not About Winning Work! Editor: Jeff Mahoney, Senior Editor: Anne Klayman, Associate Editor Suzanne Hatch, Magazine Designer/Assistant Editor: Sherri Klayman, Head Writer/Assistant Editor: Mike Lenihan Construction Outlook Chair: Ryan McCourt Editorial Board: Ryan McCourt, Brian Cooney, Chris Valenti, & Querino Pacella CONSTRUCTION OUTLOOK published monthly by the Utility Contractors’ Association of New England, Inc., 300 Congress Street, Suite 101, Quincy, MA 02169; Tel: 617.471.9955; Fax: 617.471.8939; Email: jmahoney@ucane.com; Website: www.ucane.com. Statements of fact and opinion are those of the authors alone and not necessarily those of UCANE and the Construction Outlook editorial board and staff. Subscriptions are included in dues payments for UCANE members. Presorted Standard postage paid at Brockton, MA. POSTMASTER, please send form #3579 to Construction Outlook, Crown Colony Office Park, 300 Congress Street, Suite 101, Quincy, MA 02169.
Time to Take Advantage of the Opportunity Ahead As 2022 begins, I am honored to take over as UCANE President and would like to thank the membership for their support. It has been a privilege for me to serve on the Board of Directors, and then move up the ladder these past few years, and I now look forward to continuing the progress made by our former Presidents. I would like to take a moment to thank our Immediate Past President, Marcella Albanese, for her service, dedication, and commitment to UCANE over the years.
T
he pandemic made it a challenging time for Marcella to serve as UCANE President, and although we had to cancel most in-person events, she continued to lead the advocacy effort to ensure that members continued to work safely throughout the last two years. She always put the interests of our industry first and continued to get our message out to our elected officials and others that infrastructure starts below the ground. The New Year also presents our industry with a oncein-a-generation opportunity. After years of lobbying by UCANE, our elected officials in Washington and Massachusetts have appropriated much-needed additional funding for water, sewer, and underground utility infrastructure work, through the Federal Infrastructure Investment and Jobs Act and the American Rescue Plan Act. These two measures will make billions of dollars available to be invested into the Commonwealth’s infrastructure in the coming years, and will provide a much-needed upgrade to our outdated and failing infrastructure. You can read more about the impact these bills will have on our industry in this issue of our magazine, beginning on page 23. However, there is still much work to be done. While additional funding has always been a top priority, it is of no use if municipalities and awarding authorities cannot access the funds and ultimately get jobs out to bid and completed. We know the immediate need is there, as 2022 applications to the MassDEP exceeded $2 billion to be approved for the Intended Use Plan (IUP), well over twice the amount received in previous years for water infrastructure projects. Communication between government agencies and municipalities is crucial so that none of these additional funds are left on the table. Continue to JANUARY, 2022
keep an eye out for our ongoing #InvestInWaterMA Campaign, which is highlighting the need to prioritize water infrastructure and building relationships with additional elected officials, municipal leaders, and other stakeholders to make these projects come to fruition. As UCANE President, I will also make workforce development issues a top priority. The pandemic has only exacerbated the industry-wide problem of hiring and retaining qualified workers. We need to continue to be proactive in our efforts to recruit the next generation of diverse workers for these good-paying jobs. We also need to continue to be in contact with our elected officials about these ongoing issues and have state workforce policies reflect the current situation. We need to partner with all stakeholders to find solutions that work so that we can achieve the common goal of a vibrant and diverse workforce for many years to come. Like my father before me, as a member of UCANE I have enjoyed its benefits and the opportunity to give back to our industry. While our membership continues to thrive and grow, I believe there are many other prospective members out there performing our work who should be joining our ranks. I would encourage our members to identify other businesses that you work with every day, both contractors and suppliers, and encourage them to become a proud fellow member of UCANE.
Lastly, I would like to wish you and your families a healthy and happy New Year. I am excited to work with our Officers, Board of Directors, the UCANE staff, and the entire membership to make 2022 a productive and successful year. n
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New Regulations to Reduce Emissions, Advance Market for On-Road Clean Trucks Enacted
A
ccording to a press release issued by the Massachusetts Department of Environmental Protection (MassDEP), the agency filed emergency regulations to further reduce transportation emissions and accelerate the adoption of zero-emission vehicles (ZEV) at the end of December. The emergency regulations immediately adopt California’s Advanced Clean Trucks regulation, which requires an increasing percentage of ZEV truck sales starting with Model Year 2025 and ramping up through Model Year 2035, accelerating the market for medium- and heavy-duty ZEVs. The filing of the emergency regulations commences the start of a public comment period and the coordination of a public hearing in February 2022, and, ideally, will help reduce emissions of nitrogen oxides (NOx), toxic air contaminants, and greenhouse gases from on-road vehicles. Massachusetts law requires the Commonwealth to adopt California motor vehicle emissions standards as long as those standards achieve, in the aggregate, greater emissions reductions than federal standards. Massachusetts first adopted the California Low Emission Vehicle (LEV) program regulations in 1991 and has amended it many times to remain identical to the California LEV program. This latest amendment involves emission standards for Model Years 2025 and later medium- and heavy-duty vehicles and engines. Emergency authorization of the regulation was needed as the federal Clean Air Act (CAA) requires states that adopt the California standards to do so at least two model years before the standards take effect, in this case, January 1, 2022 for vehicles labeled as Model Year 2025, which starts on January 1, 2024. The filing of emergency regulations begins a three-month process towards making the changes permanent, which will include a public hearing on the amendment set for January 21, 2022, and a 30-day public comment period which ends on January 31, 2022. In particular, the emergency regulations adopt the latest revisions to the California medium- and heavy-duty vehicle and engine regulations. Those revisions include: JANUARY, 2022
the Greenhouse Gas (GHG) Phase 2 Standards for Model Year 2025; the Heavy-Duty Omnibus Regulation, which contains a comprehensive set of emission standards and other emission-related requirements for heavy-duty vehicles and engines; and the Advanced Clean Trucks Regulation, resulting in ZEV sales starting in Model Year 2025 and ramping up through Model Year 2035, accelerating the market for medium- and heavy-duty ZEVs. In addition to reducing pollutant emissions, the regulations will lead to reduced fuel consumption and fuel costs and maintenance due to more fuel-efficient engines and vehicles and next-generation zero-emission trucks. According to the MassDEP, agency officials participated in a series of meetings on rulemakings with the California Air Resources Board (CARB) and joined CARB, the Northeast States for Coordinated Air Use Management and other organizations to develop the new regulations. MassDEP also held two public stakeholder meetings in April 2021 to share information on these regulatory efforts and to solicit stakeholder feedback. Vehicle emissions regulations are part of the Massachusetts plan to maintain air quality standards under the federal Clean Air Act and are a critical component of the Massachusetts Interim Clean Energy and Climate Plan for 2030 under the Massachusetts Global Warming Solutions Act (GWSA). Earlier this year, Governor Charlie Baker signed “An Act Creating a NextGeneration Roadmap for Massachusetts Climate Policy” that amended the GWSA to require specified emissions reduction limits for 2030, 2040, and net-zero greenhouse gas (GHG) emissions by 2050. Last year, Massachusetts was one of 15 states and the District of Columbia to set a goal of 100 percent electric truck and bus sales by 2050. Adopting these rules will accelerate the transition to medium- and heavy-duty electric vehicles. For further information on the emergency regulations and the process for submitting testimony, please visit: https://www.mass.gov/service-details/massdep-publichearings-comment-opportunities. continued on page 9
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Legislative Update continued from page 7
T
KPMG: State’s UI Still Running a Deficit
he end of 2021 saw an interesting discussion evolve between a wide range of stakeholders about the state’s unemployment (UI) fund. In particular, everyone wanted to know “what exactly is in the unemployment insurance fund?” In early 2021, the Massachusetts legislature, with the Governor’s ultimate approval, provided relief from scheduled UI rate increases by freezing the increases. Shortly thereafter, however, news filtered out that the overall UI fund was in such a significant deficit that employers would be required to pay an additional assessment to replenish the fund. It was at that point employers and employer organizations sounded the alarm. Despite the drumbeat for relief and the provision of $500 million in America Rescue Plan Act (ARPA) funding, it was still unclear how much money was actually in the UI fund and what was necessary to make it “whole” again. To answer the question, the Massachusetts Executive Office of Labor and Workforce Development (EOLWD) hired the consulting firm KPMG to provide an analysis and report on needed short and long-term actions. Specifically, KPMG was “to complete an independent assessment to fully reconcile the account balances in the UI Trust Fund, its Benefit Payment Account and subaccounts, revenue accounts, and other related UI banking accounts, to trace and explain fund inflows (including employer assessments and federal funds) and outflows (including benefits payments for all programs), and to provide recommendations for the resolution of any issues resulting from the assessment.” Citing a combination of early pandemic changes, including new programs, rapidly evolving guidance, and a new claims processing system and ad-hoc internal reporting, the KPMG report examined some of the fallout from a system overloaded with claims from March 2020 through May 2021. To highlight demands on the fund that stemmed from forced business closures, KPMG analysts estimated that total benefits paid in 2020 were nearly seven times more than all benefits paid in 2018 and 2019 combined. In reporting its findings, KPMG noted the following: “KPMG has determined that during the period of March 2020 to November 2021, there were $318 million in benefit payments returned by banks that was retained in subaccounts within the Benefit Payment Account and later repurposed to pay new claims for benefits. These funds should have been returned to the funding source from which they were originally charged—either federal JANUARY, 2022
program sources or the UI Trust Fund. KPMG estimates that the federal portion to be returned is approximately no more than $300 million on the basis that the returns relate to benefit payments that were made at a time when the majority (90%) of benefits paid out came from federal sources. EOLWD has requested guidance from USDOL for the administration of these funds and has yet to receive guidance as of December 2021. The UI Trust Fund balance includes $415 million of credits against future assessments to be collected from employers because of mid-year rate adjustments implemented in calendar year 2021 after employer assessments had been paid. These credits will be applied to future employer assessments to eliminate the credit that was over-collected because of the timing of legislative changes in 2021, with the effect that future employer assessments will be correspondingly reduced. Aside from the $300 million bank return adjustment and the anticipated application of $415 million in employer credits, KPMG did not identify any other items associated with the period reviewed that continued on page 11
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Legislative Update continued from page 9 would impact the UI Trust Fund balance. When also accounting for an outstanding loan balance of $2.3 billion, the UI Trust Fund has a structural deficit of $115 million after repayments, credits, and reconciliations.” The legislation providing employers with some relief from COVID-related charges was enacted in May 2021, after most employers had already paid their first quarter contributions. The credits will be applied to future employer assessments, reducing those contributions. And independent analysts also identified the need for a one-time transfer of $300 million from funds currently held in the UI system to the federal government "to reconcile state and federal accounts now that emergency programs implemented under federal authority in 2020 and 2021 have come to a close." The topic of funding the UI system will surely continue in 2022. At the time of this writing, an independent commission, comprised of various stakeholder groups and agencies, is studying the state’s unemployment system, but has not issued its final report. To view the KPMG report in its entirety, please visit: https://www. statehousenews.com/content/docs/2021/12-31KPMG.pdf. continued on page 13
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Legislative Update continued from page 11
A
New Boston Mayor Announces Several Cabinet Reappointments as Her First Full Term Officially Begins
ccording to a press release from her office, Boston Mayor Michelle Wu announced several cabinet reappointments, shaping her new administration with proven leaders who are focused on equity, civic engagement, and embracing Boston’s possibility. The Mayor, who was sworn in, now begins her first full term as the City of Boston’s Mayor. In announcing the reappointments, Mayor Wu has now appointed Ms. Celina Barrios-Millner, previously Chief of Equity & Inclusion, as Senior Advisor to the Mayor; Mr. Shumeane Benford will continue as Chief of Emergency Management (OEM); Ms. Kara Elliot-Ortega as Chief of Arts & Culture; Mr. Dion Irish as Chief of Operations; Mr. Justin Sterritt as Chief of Administration & Finance, and Rev. Mariama White-Hammond as Chief of Environment, Energy, and Open Space. Ms. Barrios-Millner, an immigrant from Venezuela,
has two decades of experience serving the people of Boston by building systems and designing policies to ensure equity across major aspects of civic life. Since joining the City of Boston in 2014, Ms. Barrios-Millner has led Immigrant Integration initiatives, built the City’s first Supplier Diversity program, and most recently worked to ensure an equitable distribution of ARPA and other stimulus funds as Chief of Equity and Inclusion. Mr. Benford is a veteran Boston Police Officer and proven reform-minded public safety leader with over 25 years of experience. A collaborator who has lent his experience and voice in the City's discussion around police reform implementation, Mr. Benford is a lifelong Boston resident, and received his Masters Degree from Suffolk University, and his BA from Curry College. He is an adjunct professor at Roxbury Community College, and lives in Dorchester with his family. continued on page 15
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Legislative Update continued from page 13 Ms. Elliott-Ortega has worked in the Mayor’s Office of Arts and Culture for six years, serving as Chief of Arts and Culture for the past three years. Ms. Elliott-Ortega previously worked for the City as the Director of Policy and Planning for the Mayor’s Office of Arts and Culture. An urban planner and cultural organizer focusing on the role of arts and creativity in community building and government, Ms. Elliott-Ortega holds a Master’s in City Planning from MIT and is a graduate of the University of Chicago. She is a resident of Roxbury. Mr. Irish has served the City of Boston for more than 26 years in various leadership positions. As Chief of Operations, he oversees the Inspectional Services, Public Facilities and Property Management Departments; and coordinates multi-agency operational initiatives. He is a dedicated and passionate public servant who held leadership positions in the Inspectional Services Department (ISD) for over a decade, including serving as Commissioner from 2019 to 2021. Previously, Irish was appointed Commissioner of the Boston Election Department in 2015 and was appointed to lead Boston’s Office of Civil Rights in 2012. He is a graduate of Dorchester High School; he earned a Bachelor’s degree in Political Science from Boston University, a Master’s of Urban Affairs from Boston University, and a Master of Public Administration Degree from Suffolk University. As CFO, Mr. Justin Sterritt is responsible for all aspects of financial management for the City of Boston. In this role, he will continue the sound fiscal stewardship of the City’s human and financial resources to support the long-term growth and stability of the city. Previously serving as Director of the Office of Budget Management for the City, Mr. Sterritt has also led key strategic efforts on behalf of the City including increasing engagement and equity in the annual budget process and managing state funding dynamics. Prior to joining the City of Boston, Mr. Sterritt spent over six years in various finance and policy roles for the Commonwealth of Massachusetts. Rev. Mariama White-Hammond was appointed as Chief of Environment, Energy, and Open Space in April 2021. As Chief, Rev. White-Hammond oversees policy and programs on energy, climate change, sustainability, historic preservation, and open space. Over the course of her time with the City, she has supported the amendment of the Building Emissions Reduction and Disclosure Ordinance (BERDO) to set carbon targets for existing large buildings. Rev. White-Hammond has also convened a city-led youth green jobs program. Rev. Mariama is the founding pastor of New Roots AME Church in Dorchester. For more information about Boston Mayor Wu’s senior leadership team, please visit: https://www.boston. gov/departments/mayors-office#cabinet-heads. continued on page 17 JANUARY, 2022
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Legislative Update continued from page 15
News in Brief
•
•
Downing Announces End to Gubernatorial Campaign. As the end of the year approached, former Senator Ben Downing announced that he was abandoning his run for Governor. The first announced Democratic candidate, Mr. Downing entered the race as a presumptive challenger to Governor Charlie Baker. Hoping to capture the electorate as former Governor Deval Patrick did, Mr. Downing was soon joined by two other Democratic candidates, which started to take away his targeted base. An affable candidate who drew from his previous experiences in the State House and the clean energy sector, Mr. Downing often focused his remarks on realizing the Commonwealth’s potential including, but particularly, through western Massachusetts, from where he hails. Twelve (12%) Percent of Public School Water Fixtures in Massachusetts Have Lead. According to a report conducted by researchers at Northeastern University, about 12 percent of water fixtures in Massachusetts public schools have lead levels that exceed the threshold at which the state requires shutting them down. In total, the scientists analyzed 47,727 lead measurements at 1,094 schools across the state, taking an average of 44 samples per building, according to the study. Massachusetts has a total of 1,840 public schools, according to the state’s Department of Edu-
JANUARY, 2022
•
cation. Researchers found that 90 percent of the fixtures with samples that exceeded the threshold were located in just 376 Massachusetts schools — or just 34.4 percent of those sampled. A copy of the study may be found at: https://pubs.acs.org/doi/pdf/10.1021/ acs.estlett.1c00845. Crighton Staff Goes Local; Move from State House to City Hall. Senator Brendan Crighton, a former legislative staffer and former State Representative, whose own former boss, former Senator Tom McGee, went from state politics to local politics, can now claim two staffers who have done the same thing. Mr. Jon Thibault, the Senator’s former chief of staff, will assume the same position with the City of Lynn’s newest Mayor, Jared Nicholson. Likewise, Somerville Mayorelect Katjana Ballantyne recently announced that she has hired Mr. Aneesh Sahni, who most recently was the legislative director for Senator Crighton, to serve as Somerville's director of intergovernmental relations. In his new role, Mr. Sahni will oversee the policy agenda for the City of Somerville at the local, state, and federal level. UCANE thanks both gentlemen for their work and commitment to funding water infrastructure in the Commonwealth. Senator Crighton has been a longtime supporter of a UCANE initiative to jumpstart the Commonwealth’s efforts to close its $18 billion - $21 billion funding gap. n
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Massachusetts Office of the Attorney General Continues Aggressive Enforcement of Construction Industry In September of 2021, the Massachusetts Office of the Attorney General (AG) issued its sixth-annual “Labor Day Report,” “on the office’s efforts to combat wage theft and other forms of worker exploitation.” As in previous years, the Construction Industry has been a primary target of enforcement actions, with more than $1.9 Million in penalties and restitution assessed against 115 employers in Fiscal Year 2021. The AG “continues to prioritize wage theft in the construction industry,” and is actively pursuing those in violation of the law.
B
ut wage theft and worker exploitation are not the only issues of concern to the AG. The AG continues to investigate and enforce alleged violations of various other legal requirements, including environmental laws and regulations. For example, in December of 2021, the AG announced a settlement against two companies in connection with performance of alleged illegal asbestos work at various residences located in four Massachusetts municipalities. The AG commenced an action against an asbestos abatement contractor, as well as an asbestos consulting company. According to the AG, the asbestos abatement contractor allegedly violated the Commonwealth’s clean air law and regulations when it failed to properly handle and remove asbestos-containing material, and failed to file proper notification of asbestos abatement work. The AG further alleged that the consulting company inspected the abatement contractor’s work, but submitted inaccurate documents and analyzed samples without the proper certification. JANUARY, 2022
Ultimately, the two companies agreed to file consent judgments in Suffolk County Superior Court. The settlement required the abatement contractor to pay up to $80,000 in civil penalties, retrain employees, and provide Massachusetts Department of Environmental Protection (MassDEP) with additional notice of asbestos abatement work for an 18-month period. As for the consultant, the settlement required payment of up to $165,000 in penalties, retraining of employees, additional MassDEP requirements, and continued on page 21
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Legal Corner continued from page 19
ger a costly government investigation or enforcement action. Adoption, implementation, and administration of a robust compliance and training program can be extremely helpful to contractors looking to manage the various risks of doing business in 2022 and beyond. n
the “implement[ation of] a detailed document management system to ensure accurate documentation of its asbestos-related work in the future.” In the AG’s press release announcing the settlement, MassDEP commented that it has a “team of analysts, scientists, investigators and attorneys who are expert in, and dedicated to, enforcing the Commonwealth’s Call Your Nearest GENALCO Warehouse asbestos regulations.” For These Supplies HYDRAULIC GRADE 8 STROBE LIGHTS OIL We often write about enNUTS & BOLTS WEATHER CAPS forcement issues and comAIR CLEANERS GREASE FITTINGS BUCKET TEETH pliance. But it is as imporHYDRAULIC HOSE tant now as ever to remain BUCKET LIPS vigilant when it comes to EQUIPMENT PAINT BUCKETS compliance with applicable CUTTING EDGES laws and regulations. In a CHAIN SLINGS complex web of legal reBACKUP BELLS AIR, OIL & FUEL quirements covering variAND ALARMS FILTERS EXTREME ROTARY ous issues, construction PRESSURE GREASE ASPHALT CUTTERS contractors face numerous GENALCO inc. 1-877-436-2526 70 years of service to New England Industry pitfalls every day. The reality www.genalco.com is that suspicion of alleged Needham Heights, MA Springfield, MA West Haven, CT Warwick, RI FAX 781-449-6643 FAX 413-781-3771 FAX 203-934-2580 FAX 401-736-9769 violations of the law can trig-
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A Summary of the Bipartisan Infrastructure Bill HR 3684 How it is going to help the construction industry, the national economy, and job creation? By almost any measure, the recently enacted $1.2 trillion Infrastructure Investment and Jobs Act (IIJA) is enormous. In round numbers, $650 billion of the bill represents funding of the nation’s current federal infrastructure programs at continuing baseline levels for FY22–FY26 (five years @ $130 billion/yr). The remaining $550 billion is what the bill has added - above baseline levels. The $550 billion represents “Extra Funding” added to existing
federal programs, plus the addition of some new infrastructure programs. The $550 billion “Extra Funding” will not be evenly split over five years. It is expected that about 57% will be paid out in the first five years and 43% paid out in FY27–FY31 as jobs get awarded and completed. Some new programs will take time to roll out and FY22 will see a lower increase due to the fact it is already half over.
The Government projection for spending the $550B looks like this: FY 2022 2023 $B 27.2 50.5
2024 68.0
2025 81.9
2026 88.4
(2022-26) ($316B)
2027 74.0
2028 2029 2030 2031 (2023-31) TOTAL 61.0 43.0 32.0 24.0 ($234B) $550B
In the simplest analysis let’s take the $550B “Extra Funding” divided by 10 years = $55B/yr “Extra Funds.” Baseline Federal Spending of $130B/yr + $55B/yr = $185B/yr = Average 42% increase in annual federal infrastructure funding – ignoring inflation. Increases to most “traditional” infrastructure programs will be much less than 42% because the $550B also funds a host of new infrastructure programs and initiatives.
T
his spending touches every sector of infrastructure – from roads and bridges to water and sewer to energy and broadband – all with an eye toward resiliency to resist damage from changing weather patterns. The Bill is intended as an aggressive plan to modernize, upgrade, and protect the country’s network of important infrastructure assets while advancing clean and renewable energy initiatives and reducing dependence on fossil fuels.
Job Creation The IIJA will provide millions of new job opportunities while requiring capacity expansions in both the private and public sectors. The engineers that design these projects will need more staff and office space. The contractors that build the projects will need additional tradesmen, managers, and more trucks and heavy equipment. Some companies
22
that traditionally perform private sector work are expected to enter the public sector market. New business start-ups are predicted and are expected to receive encouragement and support from government agencies. Several specific funding programs are new to some federal agencies and may take some time to roll out. The massive increase in the number of projects being applied for, being built and overseen, and being billed out will require increases in public sector hiring at municipal, state, and federal levels. The additional $550B in funding is expected to create approximately 4.6 million *additional jobyears of direct and indirect full time employment positions. Infrastructure-related jobs, which now comprise 12% of jobs in the U.S. workforce (130M full time U.S. workers X 12% = 15.6M), would increase temporarily to 14% of total U.S. jobs. The continued on page 23
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Infrastructure Bill continued from page 22 Infrastructure Bill would revive, at least temporarily, the blue-collar economy. This would be a marked shift in the recent trajectory of the workforce. In the 1970s, 72% of jobs in America required no more than a high school education. Today, that number is around 34%. The infrastructure program is estimated to create 2.5 million (55%) good paying blue-collar job-years for workers with a high school diploma or less. The balance of the job-years (2.1 million job-years) will require at least some education beyond high school. Advances in Artificial Intelligence (AI) including robotics and automation in both manufacturing and construction are expected to compete for a limited number of both existing and new jobs in those industries in the years ahead. *An additional 2.6M job-years of new induced jobs will be created with the $550B increase in funding. Refer to U.S. Dept. of Transportation memo 12/29/21 on page 29.
Where is the $550 Billion Being Invested? The 2,702 page Infrastructure Investment and Jobs Act will cover the Federal portion of our nation’s baseline infrastructure funding for FY22FY26 ($650B). It also contains a one-time infusion
of $550B in new spending to be allotted to specific infrastructure programs over the next 10 years. The $550B distribution is as follows: • $110 billion (20%) for roads and bridges. One in five miles, or 173,000 total miles, of our highways and major roads and 45,000 bridges are rated in poor condition. This investment will repair and rebuild our roads and bridges with a focus on climate change mitigation, resilience, equity, and safety for all users, including cyclists and pedestrians. $40B will be reserved for bridges and $16B for mega-project assistance to highway projects of regional importance. • $66 billion (12%) for railroads. Funding includes upgrades and maintenance of America’s passenger rail system and freight rail safety. This is the largest investment in passenger rail since the creation of Amtrak 50 years ago. The legislation invests $66 billion in rail to eliminate the Amtrak maintenance backlog, modernize the Northeast Corridor, and bring world-class rail service to areas outside the northeast and mid-Atlantic. • $65 billion (12%) for the electric grid. This investment includes the single largest investment in clean energy transmission continued on page 25
C. C. Construction, Inc. in Somerville, MA JANUARY, 2022
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Concrete Systems, Inc.: Manholes & Catch Basins, Box Culverts, Utility Structures, Special Box Structures, Containment Vaults, Fire Cisterns, CSI Arc-Span™ Bridges, Rigid Bridge ™ Systems, Bridge Deck Slabs, Permanent & Temporary Median Barrier, Uwall™ Retaining Wall Systems, Stablewall™ Retaining Wall, Headwalls & Wingwalls. Clampcrete Construction Systems: TL-4 Anchored Barrier for Roadway Structures. Tunnel Systems: Precision Segmental Tunnel Lining Rings. Cleco Manufacturing: Precision Fabricated Forms & Forming Systems, Complete Plant Design, Batch Plant Computer Automation, Countercurrent Mixers & Concrete Delivery Systems.
Infrastructure Bill continued from page 23
•
•
•
in American history. It upgrades our power infrastructure, including building thousands of miles of new, resilient transmission lines to facilitate the expansion of renewable energy. It also provides money to prevent hacking of the power grid. $65 billion (12%) for broadband. Includes funding to expand broadband in rural areas and in low-income communities. Approximately $14B of the total would help reduce Internet bills for low-income citizens. $55 billion (10%) for water infrastructure. This funding represents the largest investment in clean drinking water in American history, including $15B dedicated funding to replace lead service lines and $10B for dangerous PFAS chemical remediation. Water, sewer, and stormwater SRF programs will see substantial increased funding including expansion of eligibility for grants and loan forgiveness. $50+ billion (9%) for cybersecurity and climate change. The legislation makes our communities safer and our infrastructure more resilient to the impacts of climate change and cyber-attacks, with an investment of over $50B
JANUARY, 2022
•
•
•
•
to protect against droughts, heat, floods, and wildfires, in addition to a major investment in weatherization. $39 billion (7%) for public transit. The largest Federal investment in public transit in history. The legislation will expand public transit options across every state in the country, replacing thousands of deficient transit vehicles, including buses with clean, zero emission vehicles, and improving accessibility for the elderly and people with disabilities. $25 billion (4.5%) for airports. This allocation provides funding for major upgrades and expansions at U.S. airports. Air traffic control towers and systems would receive $5B of the total for upgrades. $21 billion (3.8%) for the environment. These monies will go to clean up Superfund and Brownfield sites, reclaim abandoned mine land, and cap orphaned oil and gas wells with an emphasis on environmental justice communities. $17 billion (3%) for ports. Half of the funds in this category would go to the Army Corps of Engineers for port infrastructure. Additional funds would go to the Coast Guard, ferry terminals, and reduction of truck emissions at ports. continued on page 27
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Infrastructure Bill continued from page 25 •
$11 billion for safety. Appropriations here are to address highway, pedestrian, pipeline, and other safety areas with highway safety getting the bulk of the funding. All programs to help states and localities reduce crashes and fatalities in their communities, especially for cyclists and pedestrians.
•
$8 billion for western water infrastructure. Ongoing drought conditions in the western half of the country will be addressed through investments in water treatment, storage, and reuse facilities.
•
$7.5 billion for electric vehicle charging stations. The legislation will provide funding for deployment of EV charging stations along highway corridors to facilitate long-distance travel and within communities to provide convenient charging where people live, work, and shop. This is an initial investment to commence build out of the first-ever national network of EV chargers in the United States.
•
$7.5 billion for electric school buses. With an emphasis on bus fleet replacement in lowincome, rural, and tribal communities. n
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US Department of Transportation
Employment Impacts of Highway Infrastructure Investment ISSUED 12-29-21
The most recent official estimate of the impacts of infrastructure investment on employment was generated by Council of Economic Advisers (CEA) within the Executive Office of the President. The CEA estimated that every $1 billion in Federal highway and transit investment funded by the American Jobs Act would support 13,000 jobs for one year. ref. https://www.whitehouse.gov/blog/2011/09/09/american-jobs-act-state-state. This figure is also cited in briefing materials for the Administration's reauthorization proposal, the GROW AMERICA ACT http://www.dot.gov/sites/dot.gov/files/docs/Workforce_DOT_Reuth_FINAL_2014.pdf and the Department of Transportation's 2014 TIGER Notice of Funding Availability (NOFA), https://www.federalregister.gov/articles/2014/03/03/2014-04627/notice-of-funding-availabilityfor-the-department-of-transportations-national-infrastructure#footnote-3 The total jobs number includes the number of direct, indirect and induced jobs: • • •
A direct job is the job created by the actual government expenditure and the wages are paid for from the funds for the project. An indirect job is the job created by the expenditures the suppliers make to produce the materials used for the project. The cost of this would be included in the cost of the materials. An induced job is the job created elsewhere in the economy as increases in income from the direct government spending lead to additional increases in spending by workers and firms.
In analyses developed for the America Recovery and Reinvestment Act of 2009, the CEA had estimated that 64 percent of the job-years represent direct and indirect effects while 36 percent of the job-years are the induced effects https://www.whitehouse.gov/administration/eop/cea/estimate-of-jobcreation/. It is important to note that the employment impact of infrastructure investment does not remain constant over time. Any increase in construction materials prices and wages over time will tend to reduce the number of jobs supported by each $1 billion invested. Other factors such as changes in worker productivity and consumer's typical rate of savings will also affect the average number of jobs supported. The Federal Highway Administration (FHWA) has periodically estimated the employment impacts specifically associated with highway capital expenditures; the most recent estimate was that each $1 billion of Federal-Aid highway capital expenditure in 2007 supported 27,800 jobs. However, this figure is now considered to be out of date, and is no longer used in FHWA analyses. FHWA continues to conduct research in this area, and may issue an updated highway construction-specific value in the future. It should be noted that any such update would undoubtedly produce an estimate that is lower than the previous FHWA estimate for the year 2007, and would likely produce a figure much closer to the CEA estimate. JANUARY, 2022
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Infrastructure Investment and Jobs Act HR 3684 INFRASTRUCTURE INVESTMENT and JOBS ACT HR 3684 Total 5-Year NewTotal 5YR New England (Region 1) Funding Distribution England (Region 1) Funding Distribution
INFRASTRUCTURE CATEGORY
MA
CONN CT
RI
ME
VT
NH
TOTALS
Population
7.0M
3.6M
1.1M
1.4M
643,000
1.4M
15.1M
CLEAN & DRINKING WATER PROJECTS*
$1100M
$445M
$378M
$390M
$355M
$418M
$3.086B
ROADS*
4200
3500
1500
1300
1400
1100
13.00B
BRIDGES*
1100
561
242
225
225
300
2.65B
PUBLIC TRANSPORTATION*
2800
1300
292
251
77
126
4.85B
BROADBAND
100
100
100
100
100
100
600M
AIRPORTS*
244
62
45
24
28
45
449M
RESILIENCY and CYBER PROTECTION
21.5
19.4
12.9
23
21
18
116M
ELECTRIC CHARGING NETWORK
63
53
23
19
21
17
196M
TOTALS
9.36B
6.05B
2.77B
2.49B
2.25B
2.12B
$25.0B
NOTES 1. HR 3684 (Infrastructure Investment and Jobs Act-amended) includes $650B in reauthorization of existing Federal programs for 5 years at traditional levels, PLUS $550B to supplement exist. levels and to establish new programs. 2. This chart represents New England's ESTIMATED portion of the $550B ADDITIONAL federal funds provided in HR 3684 and are based on current Federal Highway and EPA funding formulas. $25B/$550B = 4.5% 3. The total federal Infrastructure funds ( $1.2 Trillion) are for projects to be bid over the next 5 years ( FY2022-2026 ) 4. Total payments are estimated to extend over a minimum of 8 years. 5. Distribution formulas and Annual distributions may vary based on updated factor data provided each fiscal year. 6. * Existing Federal Programs - Chart values do not include base spending levels , only the portion of the $550B 7. All 50 states will also be able to compete for additional funds in New Infrastructure Programs totalling about $40B 8. DRINKING WATER PROJECTS - FY2022-26 SRF funding levels will average 35%% above FY2021 level for the New England States 9. CLEAN WATER PROJECTS - FY 2022-26 SRF funding levels will average 12% above FY2021 level for New England 10. ROADS,BRIDGES and PUBLIC TRANSPORTATION PROJECTS- FY2022-26 annual funding levels will average 22% above FY2021 level for the New England States
Barletta Heavy Division in Somerville, MA 30
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JANUARY, 2022
Albanese Brothers, Inc. in Salisbury, MA
Notes 1. HR 3684 (Infrastructure Investment and Jobs Act-amended) includes $650B in reauthorization of existing Federal programs for five years at traditional levels, PLUS $550B to supplement existing levels and to establish new programs. 2. This chart represents New England's ESTIMATED portion of the $550B ADDITIONAL federal funds provided in HR 3684 and is based on current Federal Highway and EPA funding formulas. $25B/$550B = 4.5%. 3. The total federal Infrastructure funds ($1.2 trillion) are for projects to be bid over the next five years (FY22-FY26). 4. Total payments are estimated to extend over a minimum of eight years. 5. Distribution formulas and Annual distributions may vary based on updated factor data provided each fiscal year. 6. *Existing Federal Programs - Chart values do not include base spending levels, only the portion of the $550B. 7. All 50 states will also be able to compete for additional funds in New Infrastructure Programs totalling about $40B. 8. DRINKING WATER PROJECTS - FY22-FY26 SRF funding levels will average 35% above FY21 level for the New England States. 9. CLEAN WATER PROJECTS - FY22-FY26 SRF funding levels will average 12% above FY21 level for New England States. 10. ROADS, BRIDGES and PUBLIC TRANSPORTATION PROJECTS- FY22-FY26 annual funding levels will average 22% above FY2021 level for the New England States.
JANUARY, 2022
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Infrastructure Investment and Jobs Act Infrastructure Investment and Jobs Act Environmental Protection Agency Environmental Protection Agency State Revolving Fund (SRF) State Revolving Fund (SRF) Estimated 2022 Allotments to NEW ENGLAND States Estimated 2022 Allotments to NEW ENGLAND States STATE Pop. Total SRF Drinking Water Lead Service DW PFAS Clean Water CW PFAS Massachusetts 7.0M $188,890,000 $41,662,000 $ 65,609,000 $17,496,000 $60,925,000 $3,198,000 Connecticut 3.6M $ 76,907,000 $17,955,000 $ 28,275,000 $ 7,540,000 $21,983,000 $1,154,000 New Hampshire 1.4M $72,644,000 $17,955,000 $ 28,275,000 $ 7,540,000 $17,933,000 $ 941,000 Maine 1.4M $68,390,000 $17,955,000 $ 28,275,000 $ 7,540,000 $13,891,000 $ 729,000 Rhode Island 1.1M $66,451,000 $17,955,000 $ 28,275,000 $ 7,540,000 $12,049,000 $ 632,000 Vermont 643,000 $63,041,000 $17,955,000 $ 28,275,000 $ 7,540,000 $8,809,000 $ 462,000 TOTALS 15.1M $536,323,000 $131,337,000 $206,984,000 $50,196,000 $135,590,000 $7,116,000 NOTES
Notes
1. The table above summarizes the first-year(FY2022) allotment of the nearly $3.1 billion in total Federal SRF 1. This table summarizes the first-year (FY22) allotment of the nearly $3.1 billion in total Federal SRF funding funding that will be provided to New England states over the next five years through the Bipartisan that will be provided to New England states over the next five years through the Bipartisan Infrastructure Infrastructure Investment and Jobs Act. Investment and Jobs Act. 2. Under current formulas Region 1 (New England) qualifies for about 7% of EPA’s National SRF Program. 2. Under current formulas Region 1 (New England) qualifies for about 7% of EPA’s National SRF Program. 3. Program Program allotments and distribution formulas may change in future years dependent on annual data. 3. allotments and distribution formulas may change in future years depending on annual data.
SUMMARY OF EPA’s NATIONAL 5 YR ( $43.4B ) SRF PROGRAM 1. DRINKING WATER 5YR SRF = $30.7B and INCLUDES :
A. $11.7B for drinking water projects - 49% to be grants or principal forgiveness loans - State match reduced from 20% to 10% B. $15B for replacing lead service lines - 49% shall be grants or principal forgiveness loans – State match 0% C. $ 4.0B for PFAS /emerging contaminants – 100% shall be grants; State match 0% 2. CLEAN WATER 5YR SRF = $12.7B and INCLUDES: A. $11.7B for sewer/stormwater/cso projects- 49% to be grants or principal forgiveness loans State match reduced from 20% to 10% B. $ 1.0B for PFAS/emerging contaminants – 100% to be grants; State match 0%
McCourt Construction Company in Salem, MA
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RJV Construction Corp. in Dedham, MA
P. Gioioso & Sons, Inc. in Weymouth, MA
Summary of the EPA’s National 5-Year ($43.4B) SRF Program 1.
2.
DRINKING WATER 5-YR SRF = $30.7B and INCLUDES: A. $11.7B for drinking water projects: • 49% to be grants or principal forgiveness loans • State match reduced from 20% to 10% B. $15B for replacing lead service lines: • 49% shall be grants or principal forgiveness loans • State match 0% C. $4.0B for PFAS/emerging contaminants: • 100% shall be grants • State match 0% CLEAN WATER 5-YEAR SRF = $12.7B and INCLUDES: A. $11.7B for sewer/stormwater/cso projects: • 49% to be grants or principal forgiveness loans • State match reduced from 20% to 10% B. $ 1.0B for PFAS/emerging contaminants: • 100% to be grants • State match 0%
JANUARY, 2022
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Infrastructure Bill Extends and Expands “Buy American” Rules HR 3684 includes within it, the Build America, Buy America Act (BABA). Buy American provisions will apply to all new infrastructure projects receiving federal funds from The Infrastructure Investment and Jobs Act. BABA expands the requirements to include not only steel and iron products, but “manufactured products” and “construction materials” as well. “Produced” in the U.S. means a product was manufactured in the U.S. and the cost of its components that are mined, produced, or manufactured in the U.S. is greater than 55 percent of the total cost of the manufactured product. BABA also contains provisions for OMB to study increasing the domestic content of certain construction materials beyond 55% to as much as 75%. Waivers may be granted if the iron, steel or manufactured product is not produced in the U.S. in sufficient and reasonably available quantities, or if the domestic product does not meet “satisfactory” quality standards. n
GVC Construction, Inc. in Manchester, NH JANUARY, 2022
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with UCANE’s Officers and Board Members How many years have you been with Robert B. Our Co., Inc. and what is your current role in the company? I have worked for the company for 26 years and I’ve taken on many roles during that time. I have been a laborer, operator, crew leader, and I am now an owner and Vice President. Most of us running family businesses wear many hats on a daily basis. I am always looking at the work load, the long term future schedule, job costing, as well as hiring, and equipment needs, etc.
UCANE Board Member Robbie Our Robert B. Our Company, Inc.
ness?
Please give us some information on your background and tell us how you started in the construction busi-
Growing up Robert B. Our, III, the grandson of Robert B. Our can only lead you in one direction. I always knew I was going into the family business. I grew up around my grandfather and the business, and was ready as soon as they gave me the chance. In the summers of my teenage years, I worked at the now named Acme Shorey Precast Facility on White's Path in Yarmouth. I was given jobs, like pouring concrete, cutting wire, and cleaning the shop. Each summer that passed, I received more and more responsibility and I loved every minute of it. Once I graduated from High School, I started at Robert B. Our Co., Inc. Starting at the bottom again, I worked in the septic division and eventually I was provided the opportunity to work on my Uncle John's crew as a laborer. During the next 10 years or so I learned so much. He worked me like a rented mule, but I would not have changed a thing. Long days with the toughest of jobs and the toughest of crew mates taught me how to lead by example. We worked on all types of heavy construction jobs; sewer, water, and site construction.
JANUARY, 2022
What types of construction does your company specialize in and in what areas of New England do you pursue this work? Our company is diversified and specializes in many different types of construction. Utility construction, i.e. sewer, water, pump stations, and treatment plants are a big part of what we do. We also specialize in marine construction. Piers and docks, bulkheads, and dredging make up the majority of marine construction. The residential division is also a big part of our company. where we specialize in Title V septic’s, septic pumping and maintenance, and site work. The residential division is where my grandfather founded this company and it is still a very important division of our company. Our area of construction work is primarily in Massachusetts. We tend to keep our sites on projects within a 2.5 hour drive from our office in Harwich. We do a fair amount of our business on the Cape and Islands. How long has your company been a UCANE member and why did you decide to volunteer to serve on the Board of Directors? We have been members of UCANE since 2005. Over the years I have seen the hard work that the UCANE staff and its Board of
continued on page 39
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Under the Hard Hat continued from page 37 Directors do to help keep our company and the industry busy and informed. UCANE’s lobbying ability is well respected on Beacon Hill and I have always been impressed with UCANE members often taking their personal time to talk directly to legislators when it comes to funding or when a bill appears detrimental to contractors. Whether it is keeping an eye on Beacon Hill, keeping us updated on the latest OSHA standards, industry news, or changes to agency regulations, etc., it’s a good feeling that an association and their staff have your back while we’re all out there 10 hours a day keeping a business going. UCANE also offers me an opportunity to meet with some of my peers and develop contacts with a wide range of suppliers and subcontractors that our company needs. I have joined the Board of Directors to continue learning, to stay up to date on the issues that affect our industry, and hopefully to be an asset to UCANE and its members going forward. Between COVID issues and supply chain problems, 2021 was certainly a challenging year for contrac-
tors. How do you see the New England heavy construction market shaping up for 2022 and what are the biggest challenges contractors might be looking at in 2022? With the recently signed Infrastructure Bill starting to roll out, I am optimistic that heavy construction will continue to boom for at least the next five years or more. Early 2022 might be a little slow while the federal funding works its way to New England and, hopefully, our city and town leaders are doing what they need to do in order to get their infrastructure projects to spring town meetings. Despite my optimism, the Robert B. Our Company will proceed cautiously and always be prepared for sudden changes in our market or external issues that affect our business. Some of the biggest challenges I see for 2022 are continuations of what we have been dealing with in 2021, most notably the COVID-19 pandemic. As a company we’ll be paying more attention to supply chain issues, material escalation clauses, and completion dates when bidding work. In 2022 we will also be ordering more materials in advance and be expanding our efforts in the hiring process. n
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Releases FY21 Top 10 Violations List
O
SHA recently released its annual list of Top 10 OSHA violations for FY21. As expected, the list of cited standards remained essentially the same as last year with Fall Protection (1926.501) leading the list for the eleventh year in a row. The statistics were released by OSHA at the annual convention of The National Safety Council (NSC) held in Orlando, Florida. They represent OSHA’s FY21 that ended September 30, 2021.
The big news for 2021 was that all of the Top 10 standards saw reductions in the number of violations issued between FY20 and FY21. This continues a steady reduction in violations seen in every category over the last four years. Looking at the last four years of data, the Top 10 categories have seen citations being reduced anywhere from -5% (Personal Protection Equipment) to -57% (Hazard Communication). Overall the Total Violations in the Top 10 Categories have continued on page 43
OSHA's TOP 10 Most Cited Violations 2021 RANK 1 2 3 4 5 6 7 8 9 10
40
Standard / VIOLATION 1926.501 FALL PROTECTION- General 1910.134 RESPIRATORY PROTECTION 1926.1053 LADDERS 1926.451 SCAFFOLDING 1910.12 HAZARD COMMUNICATION 1910.147 LOCKOUT/TAGOUT 1926.503 FALL PROTECTION -Training 1926.102 PERSONAL PROTECTION-Eye and Face 1910.178 POWERED INDUSTRIAL TRUCKS 1910.212 MACHINE GUARDING TOTALS
2021
NUMBER OF CITATIONS 2020 2019
2018
CHANGE 2018 to 2021
5295
5424
6010
7216
-27%
2527
2639
2450
3112
-19%
2026
2129
2345
2923
-31%
1948
2538
2813
3319
-41%
1947
3199
3671
4537
-57%
1698
2065
2606
2944
-42%
1666
1621
1773
1982
-16%
1452
1369
1411
1528
-5%
1420
1932
2093
2281
-38%
1113 21,092
1313 24,229
1743 26,915
1969 31,811
-43% -34%
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1 2 3 4 5 6 7 8 9 10
No. 1: Fall Protection (1926.501) Violations: 5,295 in 2021 • 7,216 in 2018 = –27% No. 2: Respiratory Protection (1910.134) Violations: 2,527 in 2021 • 3,112 in 2018 = –19% No. 3: Ladders (1926.1053) Violations: 2,026 in 2021 • 2,923 in 2018 = –31% No. 4: Scaffolding (1926.451) Violations: 1,948 in 2021 • 3,319 in 2018 = –41% No. 5: Hazard Communication (1910.1200) Violations: 1,947 in 2021 • 4,537 in 2018 = –57% No. 6: Lockout/Tagout (1910.147) Violations: 1,698 in 2021 • 2,944 in 2018 = –42% No. 7: Fall Protection Training (1926.503) Violations: 1,666 in 2021 • 1,982 in 2018 = –16% No. 8: Eye and Face Protection (1926.102) Violations: 1,452 in 2021 • 1,528 in 2018 = – 5% No. 9: Powered Industrial Trucks (1910.178) Violations: 1,420 in 2021 • 2,281 in 2018 = –38% No. 10: Machine Guarding (1910.212) Violations: 1,113 in 2021 • 1,969 in 2018 = –43% TOTALS: (2021) 21,092 vs. (2018) 31,811 = –34%
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OSHA Top 10 continued from page 41 decreased from 31,811 in 2018 to 21,092 in 2021 – a reduction of 34%. These numbers represent violations cited by inspections across all industries. The reductions in citations during the fouryear period represent some combination of major improvements in workplace safety by employers and also positive results from OSHA’s continuing emphasis on complimentary training and education offered to businesses that started in 2017. This is certainly a favorable trend and one that both OSHA and the vast majority of employers can take pride in. OSHA’s budget in 2021 remained the same as 2020 at $591,787,000. Federal OSHA has 10 Regional offices and 85 local area offices. Due to the COVID-19 pandemic lingering throughout 2021, workplace inspections, as well as workplace activity saw substantial drops in 2021. Since OSHA was established in 1970 it has played the major role in creating a safer working environment across all industries. Worker injuries and illnesses have dropped from 10.9 incidents per 100 workers in 1972 to approximately 2.5 per 100 in the most recent survey done in 2019. During that
same period worker deaths in America declined as well, from about 38 worker deaths a day to 15 a day. Although safety in the workplace is improving and trending in the right direction, all employers must remain vigilant. Even with the recent improvements to statistical counts, there were still approximately 2.2 million workplace injuries reported in 2019 out of a U.S. workforce of 130 million (1.7%). On the job fatalities reached 5,333 across all industries in the 2019 survey. In recent years construction has accounted for approximately 10% of workplace injuries and 8-10% of worker fatalities. The leading cause of workplace fatalities has overwhelmingly been motor vehicle accidents, with roughly 40% occurring in transportation incidents. The “Fatal Four” most common causes of worker deaths on construction sites, according to OSHA statistics, are shown below. 1. Falls (accountable for 33.5% of construction worker deaths) 2. Struck by an object (accountable for 11.1%) 3. Electrocutions (accountable for 8.5%) 4. Caught in/between (accountable for 5.5%) n
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FactSheet Occupational Safety and Health Administration (OSHA) Inspections OSHA is committed to strong, fair, and effective enforcement of safety and health OSHA is committed to strong, fair, and effective enforcement of safety and health requirements in the workplace. OSHA inspectors, called compliance safety and health requirements in the workplace. OSHA inspectors, called compliance safety and health officers, are experienced, well-trained industrial hygienists and safety professionals whose officers, are experienced, well-trained industrial hygienists and safety professionals goal is to assure compliance with OSHA requirements and help employers and workers whose goal is to assure compliance with OSHA requirements and help employers and reduce on-the-job hazards and prevent injuries, illnesses, and deaths in the workplace. workers reduce on-the-job hazards and prevent injuries, illnesses, and deaths in the Normally, OSHA conducts inspections without advance notice. Employers have the right workplace. Normally, OSHA conducts inspections without advance notice. Employers to require compliance officers to obtain an inspection warrant before entering the worksite.
have the right to require compliance officers to obtain an inspection warrant before entering the worksite.
Inspection Priorities OSHA has jurisdiction over approximately 7 million Inspection Priorities worksites. The agency seeks to focus its inspection OSHA has jurisdiction over approximately 7 milresources on the most hazardous workplaces in the lion worksites. The agency seeks to focus its inspecfollowing order of priority: tion resources on the most hazardous workplaces in the following order ofsituations—hazards priority: 1. Imminent danger that could cause death or serious physical harm receive 1. Imminent danger situations—hazards thattop could priority. Compliance officers will ask employers cause death or serious physical harm receive top to correct these hazards immediately remove to priority. Compliance officers will askoremployers endangered correct theseemployees. hazards immediately or remove endangered employees. 2. Severe injuries and illnesses—employers 2. Severe injuries and illnesses—employers must must report: report: • All work-related fatalities within 8 hours. • All work-related fatalities within 8 hours. • All work-related inpatient hospitalizations, • All work-related hospitalizations, amputations, or losses ofinpatient an eye within 24 hours. amputations, or losses of an eye within 24 3. Worker Complaints—allegations of hazards or hours. violations also receive a high priority. Employees 3. Worker Complaints—allegations of hazards or may request anonymity whenpriority. they file complaints. violations also receive a high Employees may request anonymity when they file complaints. 4. Referrals of hazards from other federal, state or 4. Referrals of individuals, hazards from other federal, local agencies, organizations or state the or local agencies, individuals, organizations or the memedia receive consideration for inspection. dia receive consideration for inspection. 5. Targeted inspections—inspections aimed 5. Targeted inspections—inspections aimed at specific at specific high-hazard industries or individual high-hazard industries or individual workplaces that have workplaces that have experienced high rates of experienced high rates of injuries and illnesses also reinjuries and illnesses also receive priority. ceive priority. 6. Follow-up Follow-up inspections—checks forfor abatement of of 6. inspections—checks abatement violations are also also violations cited cited during during previous previous inspections are conducted conducted by by the the agency agency in in certain certain circumstances. circumstances.
details on alleged safety and health hazards. The employer respond in writing within five based on must their severity. For lower-priority hazards, working days, identifying any problems found with permission of a complainant, OSHA may teleand noting corrective to actions takensafety or planned. If phone the employer describe and health the response is adequate andathe is concerns, following up with faxcomplainant providing details satisfied with the response, OSHA generally not on alleged safety and health hazards. The will employconduct an on-site er must respond ininspection. writing within five working days, identifying any problems found and noting corrective On-Site Inspections actions taken or planned. If the response is adequate Preparation—Before conducting an inspection, and the complainant is satisfied with the response, OSHA generally compliance research inspection OSHA willofficers not conduct anthe on-site inspechistory of a worksite using various data sources, tion. review the operations and processes in use and the On-Site standards most likely toInspections apply. They gather approPreparation—Before conducting priate personal protective equipmentan andinspection, testing OSHA compliance officers research the inspection instruments to measure potential hazards. history of a worksite using various data sources, rePresentation of credentials—The on-site view the operations and processes in inspection use and the begins with the presentation of the compliance standards most likely to apply. They gather appropriofficer’s credentials, which include both a photograph ate personal protective equipment and testing instruand a serial number. ments to measure potential hazards.
Presentation of credentials—The on-site Opening Conference—The compliance officerinspecwill tion begins with the presentation of the compliance explain why OSHA selected the workplace for officer’s credentials, which photograph inspection and describe theinclude scope both of thea inspection, and a serial number. walkaround procedures, employee representation Opening Conference—The officer will and employee interviews. Thecompliance employer then selects explain why OSHA selected the a representative to accompany the workplace compliancefor inspection and describe the scope of the inspection, officer during the inspection. An authorized walkaround procedures, employee representation representative of the employees, if any, also has the and employee interviews. The employer then selects right to accompany an inspector. The compliance a representative to accompany the compliance ofofficer will consult privately with a reasonable ficer during the inspection. An authorized represennumber of employees during the inspection. tative of the employees, if any, also has the right to Phone/Fax Investigations Phone/Fax Investigations accompany an inspector.the The compliance officerthe will Walkaround—Following opening conference, OSHA prioritizes all allcomplaints complaintsititreceives receives OSHA carefully prioritizes continued on page compliance officer and the representatives will walk47 based on their severity. For lower-priority hazards, through the portions of the workplace covered by the with permission of a complainant, OSHA may inspection, inspecting for hazards that could lead to telephone the employer to describe safety and employee injury or illness. The compliance officer will JANUARY, 2022 following up “BUY FROM ADVERTISERS INreview CONSTRUCTION OUTLOOK” health concerns, with a fax THE providing also worksite injury and illness records and 45 the posting of the official OSHA poster.
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OSHA Fact Sheet continued from page 45 consult privately with a reasonable number of employees during the inspection. Walkaround—Following the opening conference, the compliance officer and the representatives will walk through the portions of the workplace covered by the inspection, inspecting for hazards that could lead to employee injury or illness. The compliance officer will also review worksite injury and illness records and the posting of the official OSHA poster. During the walkaround, compliance officers may point out some apparent violations that can be corrected immediately. While the law requires that these hazards must still be cited, prompt correction is a sign of good faith on the part of the employer. Compliance officers try to minimize work interruptions during the inspection and will keep confidential any trade secrets observed. Closing Conference—After the walkaround, the compliance officer holds a closing conference with the employer and the employee representatives to discuss the findings. The compliance officer discusses possible courses of action an employer may take following an inspection, which could include an informal conference with OSHA or contesting citations and proposed penalties. The compliance officer
also discusses consultation services and employee rights.
Results When an inspector finds violations of OSHA standards or serious hazards, OSHA may issue citations and fines. OSHA must issue a citation and proposed penalty within six months of the violation’s occurrence. Citations describe OSHA requirements allegedly violated, list any proposed penalties, and give a deadline for correcting the alleged hazards. Violations are categorized as willful, serious, other-thanserious, de minimis, failure to abate, and repeated. In settling a penalty, OSHA has a policy of reducing penalties for small employers and those acting in good faith. For serious violations, OSHA may also reduce the proposed penalty based on the gravity of the alleged violation. No good faith adjustment will be made for alleged willful violations. For information on penalty ranges, see www.osha.gov/penalties.
Appeals When OSHA issues a citation to an employer, it also offers the employer an opportunity for an informal conference with the OSHA Area Director to discuss citations, penalties, abatement dates, or any other information pertinent to the inspection. The agency continued on page 49
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OSHA Fact Sheet continued from page 47
•
and the employer may work out a settlement agreement to resolve the matter and to eliminate the hazard. OSHA’s primary goal is correcting hazards and maintaining compliance rather than issuing citations or collecting penalties. Alternatively, employers have 15 working days after receipt of citations and proposed penalties to formally contest the alleged violations and/or penalties by sending a written notice to the Area Director. OSHA forwards the contest to the Occupational Safety and Health Review Commission for independent review. Alternatively, citations, penalties, and abatement dates that are not challenged by the employer or settled become a final order of the Occupational Safety and Health Review Commission.
Workers’ Rights
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Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to help ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education, and assistance. For more information, visit www. osha. gov or call OSHA at 1-800-321-OSHA (6742), TTY 1-877-889-5627. n
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Workers have the right to: • Working conditions that do not pose a risk of serious harm. • Receive information and training (in a language and vocabulary the worker understands) about workplace hazards, methods to prevent them, and the OSHA standards that apply to their workplace.
Review records of work-related injuries and illnesses. • File a complaint asking OSHA to inspect their workplace if they believe there is a serious hazard or that their employer is not following OSHA’s rules. OSHA will keep all identities confidential. • Exercise their rights under the law without retaliation, including reporting an injury or raising health and safety concerns with their employer or OSHA. If a worker has been retaliated against for using their rights, they must file a complaint with OSHA as soon as possible, but no later than 30 days. For additional information, see OSHA’s Workers’ page (www.osha.gov/workers).
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Patrick W. Saltmarsh Tim Hunt, CHST Dir. of Envt’l, Safety Health and Safety Corporate Director W. J. L. Derenzo French Excavating Corp. Companies
What Will You Do in 2022?
I
t's January, which usually means it's time to set some annual goals. These annual goals aren't a New Year's Resolution; they are specific goals in your life to strive for or make changes in. When setting annual goals, you want to set no more than 12 goals for the entire year and focus on accomplishing three goals per quarter. The way you write your goals will play a key role in whether you meet your goals. The SMART method will help you effectively approach reaching your goals. The SMART acronym stands for: • Specific: Increase the chances of accomplishing the goals by making sure they're well-defined. Determine the who, what, where, when, and why. • Measurable: Develop criteria for measuring progress towards your goals. Detail the key indicators that will help you decide if and when you reach your destination by quantifying them. • Achievable: Create attainable and achievable goals by ensuring that you have the skills and resources to reach the goal. • Relevant: Align your goals with the overall objective of your long-term goals. • Time-Bound: Give yourself a deadline for reaching your goal to provide a sense of urgency and the opportunity to schedule the steps you plan to take to achieve the goal. Using the SMART method, you should be aiming to spread out your goals over different portions of your life. You will want some to be personal goals, some to be professional, and others to be aligned with your business or job. We are all familiar with setting personal goals. It is probably a safe bet to say that most already have a list put together. A few common examples include losing weight, eating healthy, or going back to the gym. Perhaps you want to read more or write in a JANUARY, 2022
journal. Others could be getting a certain number of hours of sleep or walking daily. Look at your daily life and decide if there are any areas that you would like to improve. Once you identify those areas, you can ask yourself how to make positive changes. When I say professional goals, I am focusing on individual professional development. These goals could be considered personal, except that they are aimed towards growth within your career. Perhaps there is a certification or specialized training that you want to acquire. A common goal could be to join a professional network or group, or to find a mentor to aid in your growth. We all have long-term professional goals; where do you see yourself in one year, five years, etc. Break down the steps you will need to take to reach those lofty long-term goals. Those will become your annual professional goals. We should also be setting goals for our businesses. You don't need to be a business owner or department manager to set these goals; we all have some area of a business that we oversee. Treat those no differently and set some goals. This is where you can define continued on page 53
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52
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Safety Corner continued from page 51 how you can help the company achieve its overall objectives. Identify the work you do and how it fits into the company goals. A typical company goal with safety might be geared towards OSHA rates and injuries. Once the company goal is clear, you will have to ask yourself what you could do to help achieve that goal. There are always parts to a whole, and everyone pitches in to help achieve company goals. Taking time to think through and set annual goals will keep you motivated throughout the year. Work each goal through the SMART acronym focusing on being specific and measurable. Those two parts of the SMART method provide the road map to success. Once you know the smaller steps you need to take to reach the goal, you will work those into your
weekly and daily schedules. A great quote by Michael Hyatt is, "What gets scheduled gets done." Write down your goals using the SMART method and look at them every Monday. By doing so, you are more likely to work in the small steps needed to achieve your goals in your daily schedule. Let's make 2022 the year of growth! n
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Barnstable Town Council Approves Another $7.3 Million for Sewering Town Attorney Nober reports progress on settling Conservation Law Foundation suits
A
s the Barnstable Town Council recently voted to invest another $7.3 million in FY22-25 sewer construction funding, Town Attorney Karen Nober said she is close to reaching a settlement with the Conservation Law Foundation (CLF). Nober said she and consulting law firm Anderson Kreiger of Boston are having "productive discussions" with the CLF, and she is "optimistic that we will soon see a settlement." The CLF has filed two lawsuits against the Town of Barnstable, one in state and one in federal court. The cases charge that the town is obligated by law to stop polluting the groundwater with septic systems, and that by permitting septic systems, the town has in effect authorized further pollution. Plus, CLF sued Barnstable in federal court earlier this year, alleging its Water Pollution Control Facility needs a federal discharge permit under the Clean Water Act because the treated wastewater discharged into the ground is reaching Lewis Bay. Town Manager Mark Ells has said Barnstable is “committed to doing everything in our power to preserve the health of the waters surrounding the Cape” by enforcing Title 5 regulations and implementing a 30-year, DEP-approved Comprehensive Wastewater Management Plan (CWMP). In fact, Councilor Kris Clark of West Barnstable said the CLF is “derailing” Barnstable's water cleanup efforts by “siphoning off financial resources (in attorneys fees) that could be directed toward exactly what they are asking us to do."
JANUARY, 2022
Earlier that evening, the council voted unanimously to approve $2.75 million for FY22-25 sewer expansion projects associated with Vineyard Wind 2 in Centerville; $3.5 million for the Route 28 sewer expansion project, which would lay pipe between Hyannis and Marstons Mills starting this spring; and another $1 million for sewering at MassDOT's Route 28 and Yarmouth Road Intersection Improvement Project. “We are very busy…and we will be very busy for a long time to come,” said DPW Director Dan Santos. Barnstable DPW is installing 2,200 linear feet (LF) of gravity sewer from Craigville Beach and Strawberry Hill Roads in Centerville to Indepencontinued on page 57
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Spotlight on Cape Cod continued from page 55 dence Drive, Hyannis, in conjunction with Vineyard Wind 1. This project allows Vineyard Wind to “land” electric cables at Covell's Beach and connect to a new substation at Independence Park. A new sewer pump station is being installed on Strawberry Hill Road. Bidding will get underway in January for the Route 28 East project, which will allow 90 properties to connect to the municipal sewer system. Construction is scheduled to begin late spring or early summer 2022, with an anticipated completion date of spring 2023.
Sewer installation at Route 28 and Yarmouth Road to serve properties north of Route 28 is scheduled to begin after the first of the year, with heavy-duty construction expected this spring, Santos said. Ells thanked the councilors for their continued support of sewer financing. "In the three votes you made tonight...your support in allowing us to proceed with constructing the sewer backbone from Phinney's Lane in Hyannis to Route 149 in Marstons Mills is significant," Ells said. "I’ll bet this vote tonight will not go unnoticed. This is significant."
WrittenArea by Bronwen Howells Walsh. Reprinted Boston The Route 28 East project will install approxifrom The Barnstable Patriot. n Locations mately 8,600 LF of new sewers within Route 28, Phinney’s Lane, 2 Dexter Street and West Main Street, and add Everett, MA 02149 Boston Area Boston Area a new sewer pump station at the Locations Locations 431 Second Street former gas station on what is now Everett, MA 02149 town-owned property located at 2 Dexter Street 2 Dexter Street 1456 Falmouth Road. Another Everett, MA 02149 Everett, MA 02149 11,600 LF of sewer force mains will connect the pump station to 431 Second Street 431 Second Street the Water Pollution Control FaEverett, MA 02149 Everett, MA 02149 cility. The project will also install BOSTON AREA LOCATIONS 4,300 LF of water main within 100 Fremont Street 2 Dexter Street 431 Second Street Worcester, 01603 Everett, MAMA 02149 Everett, MA 02149 Route 28, Earle’s Court and Captain Ellis Lane to improve water quality and water pressure. The Vineyard Wind 2 onshore project includes properties along Long Pond and the west side of Lake Wequaquet. A new submersible pump station will be installed in Centerville, closing off Mother's Park Road and reconfigBros./Scrap-It, Inc., uring the two intersectionsMinichiello adjaMinichiello Bros./Scrap-It, Inc. cent to the park. Serves over 2500 customers a week and is one of New England’s largest Serves over 2500 customers a week and is one New England's largest buyers,
buyers, sellers, and processors of scrap metal. Forour overgoal 60 years goal sellers of scrap metal. For over 60 years has our remained In-house design is ongoing for and processors remained the same - to in provide the best along prices in thetop industry along with the same - tohas provide the best prices the industry with notch the Route 28 West Sewer Expantop notch service! Fred Rogers at 617-595-5505 customer service! Callcustomer Fred Rogers at Call 617-595-5505 sion Project, which will take sewer Minichiello Bros./Scrap-It, Inc., expansion into the Three Bays Minichiello Bros./Scrap-It, Inc., watershed. The DPW will reconServes over 2500 customers a week and is one New England's largest buyers, and processors of scrap metal. For overa60week years ourisgoal Serves over 2500 customers and onehas Newremained England's largest buyers figure the intersection ofsellers Mother’s the same the best in theof industry along with notch sellers and prices processors scrap metal. Fortop over 60 years our goal has remain Park Road and Phinney’s Way,- to provide customer service! the Callsame Fred -Rogers at 617-595-5505 to provide the best prices in the industry along with top notch and install sewering along some customer service! Call Fred Rogers at 617-595-5505 private roads in Centerville. The Marstons Mills Wastewater Treatment Plant will be converted into Turn your metal into money today! a pump station to bring wastewaTurn your metal into money today! ter back to the Hyannis treatment Minichiello Bros. Inc./Scrap-It Inc. Minichiello Bros. Inc.,/Scrap-It Inc. plant.
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Greg Norris, B2W Software, Inc.
Develop the Right Cost Code Structure to Improve Reporting, Analysis, and Performance Cost codes may not seem like the most critical topic for construction executives, but developing a good code structure and applying it consistently across estimating, operations, and accounting is essential to reporting on, analyzing, and improving performance.
C
ost codes is essentially organizing activities and items into logical categories so they can be tracked and measured, preferably across workflows and without cumbersome, manual effort. Developing the right cost code structure can be tricky. Depending on size, software systems used, or type of work performed, each company must match its unique requirements, balancing practical usability in the field, and the office with a level of detail that will provide meaningful insight. While there is no onesize-fits-all solution, there are some best practices to consider.
Where Do We Start? For most contractors, it’s not necessary to actually code and track every item or activity that could be coded and tracked by accounting, estimating or operations systems. Rather than rushing into a highly detailed structure that may be impractical, it’s better to first step back and assess exactly what kind of information and level of detail will provide valuable insight into running the business more effectively. The answer will center on getting a better picture of actual production rates, bidding more accurately, analyzing equipment costs and finding out precisely which activities are making or losing money. Involving estimators, project managers, field personnel and other hands-on employees along with accounting specialists and executives in this
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process is a good idea. They provide important perspectives and often have the best sense of the everyday logistics of using and assigning codes. Getting non-financial users involved in the development process also enhances buy in. Employees will be more likely to use codes properly if they had a role in developing them and understanding why they are important to their co-workers and the company as a whole.
How Detailed Should We Get? This is the top challenge contractors face in developing an effective cost code structure. The ‘sweet spot’ between too much detail and too little will vary widely from company to company. continued on page 61
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Technology in Construction continued from page 59 In the example below, three codes to differentiate between ‘small’, ‘medium,’ and ‘large’ pipe could be sufficient for one utility contractor. There may be no measurable difference in the process, equipment or labor that company would use to install six-inch or a ten-inch pipe. Another contractor, however, may need 15 different codes to track 15 specific pipe diameters and types that its crews install in order to analyze and adjust operations.
A complex coding structure with an excessive volume of codes, however, can be an unnecessary burden on those who have to use it. Employees can end up wasting a lot of time looking up and trying to precisely assign the right code just to generate information at a level of detail that isn’t useful or not worth the effort it takes to get it. Extremely granular or specific options also create more opportunities for coding errors, which lead to misleading reporting. Agreeing on reporting goals at the outset can minimize the level of detail and the volume of codes. Starting with the basic codes required and then adding more, as needed, is almost always a better approach than starting with a high level of detail and
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Technology in Construction continued from page 61 then trying to eliminate and consolidate codes later.
What is the Best Scheme for Characters and Categories? Contractors can use virtually any combinations of numbers or letters in their cost codes, depending on individual preferences and requirements. However, there are some proven approaches that make structures more effective and prevent unforeseen problems related to sharing codes across systems or expanding the list of codes to add detail in the future. Five digits tends to be a good minimum length for numeric cost codes. This provides room to add items under a main category or sub-category signified by the first one or two digits. Alphanumeric codes may also be a good option, as long as they are accepted by the accounting systems. A code like EXC470, for example, makes it easy to identify that the item is related to excavating. Making sure the numerical or alphanumerical concept is compatible with the accounting and ERP systems, as well as any reporting systems is also a critical first step. This means being conscious of things like character count limits and the use of dashes, periods, or other special characters.
Organizing cost codes into logical categories makes more sense than assigning them arbitrarily or in a random numerical succession. Categories make it easier to recognize quickly where an activity or item belongs without having to remember or look up dozens or even hundreds of codes. The basic structure illustrated below presents a good example. All items in the “10000” category are related to General Conditions, all items in the “20000” category involve Land Clearing/Demo, and so on.
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This is also a flexible concept, making it easy to increase the level of detail in a parent-child relationship under each category. In example 2, Electricity and Internet have been added to provide more specific detail for coding Temporary Utilities. n
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2022 Scholarship Applications Now Available 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 2022 OR a current full-time college student who has not previously received a UCANE scholarship.
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? Each 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, 2022. 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 JANUARY, 2022
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View
Welcome to National Grid’s Tips of the Trade. National Grid is committed to your safety, and these tips are intended to help you work safely near our facilities. Please review these tips
Welcome to National Grid’s Tips of the Trade with your coworkers at your tailgate or toolbox meetings before work begins.
these tips are intended to help you work saf
Working safely after storms Working safely after
storms
with your coworkers at your tailgate or toolbo
equipment if you are wet or standing in water.
Use generators safely • If you must work in wet conditions, To prevent carbon monoxide (CO) poisoning, use use tools and extension cords that are generators outdoors in open areas only and at least suitable for outdoorinuse and plug only them Tofeet prevent carbon monoxide (CO) poisoning, use generators outdoors open areas 20 away from doors, windows and vents. If a CO into ground fault circuit interrupters (GFCIs) alarm structure seek windows fresh and sounds, at leastevacuate 20 feetthe away fromand doors, and vents. If a CO alarm sounds, evacuate for shockTo protection. air outdoors. prevent carbon monoxide (CO) poisonin the structure and seek fresh air outdoors. • If you see fallen line, assume anda at leastpower 20 feet away fromitdoors, wind NEVER plug a generator into a wall outlet. is energized and dangerous. Stay far away Power canplug energize utility lines, them Power can the structure andmaking seek fresh air outdoors. NEVER a generator into amaking wall outlet. energize utility lines, them from the line and anything it is contacting and unsafe for repair crews and possibly delaying power unsafe for repair crews and possibly delaying power restoration. report itNEVER to 911. Avoid and into driving restoration. plug awalking generator a wall outlet. through floodwaters, as they may hide fallen unsafe for repair crews and possibly delayin Avoid natural gas hazards power lines.
Use generators safely
Working safely after stor Use generators safely
Avoid natural gas hazards • Notify 811 before you dig to have buried gas Disconnect utilitiesnatural before major gas hazards lines and other utilitiesyou located marked. 811 before digand to have buried gas lines andAvoid other utilities located • Notify repair work
Confirm with the property owner the and marked. • Notify 811 before you dig to have bur If the job involves demolition or major repairs or location of natural gas meters and piping and marked. with inthe property owner the location oftonatural gaswith meters renovation a structure active and electric or gas • Confirm before working or around any structure. service, contact National Grid at least 15 days owner the • Confirm with the property before working in or around any structure. • piping Make sure vent lines for dryers, water prior to starting work to arrange for the heaters or vent other lines gas-fueled equipment piping before workingutility in or around any sure for dryers, water heaters or other gas-fueled equipment • Make lines and meters to be properly disconnected. are are properly connected and have not been vent lines for dryers, wate • Make sure properly connected andbyhave not been blocked orNOT compromised floodwaters, • Do start work untilby you receive a Service blocked or compromised floodwaters, properly connected and have not bee Line Disconnect Letter. storm debris, debris, snow or or ice.ice. storm snow debris, snow or ice. Do not operate any gas appliance that like to storm know more? not operate any gas appliance that hasWould beenyou affected by floodwaters until a •• Do has been affected by floodwaters until not operate any gas appliance th • Do Additional utility qualified professional inspectsit itand and any necessary repairs have beensafety made. tips, a qualified professional inspects any •
necessary repairs have been made.
Avoid electrical hazards • •
Stay out of flooded basements. Do not touch electrical appliances or
JANUARY, 2022
professional inspects it and an case studies, qualified instructional videos and training tools can all be found, at no charge to you, on National Grid’s e-SMARTworkers website. n
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Estimating is Not About Winning Work!
Y
ou know what I really hate as a general contractor? It was when we negotiated a nice project to build with a loyal customer at a great price and good contractor fee. Then after the job is completed, we spent more money than our estimated budget and therefore didn’t make the gross profit we should have. When we negotiated the guaranteed maximum price contract, the customer trusted us and didn’t question our costs. And then after project completion the final job costs significantly exceeded the budget. Looking for answers, we discovered our estimator didn’t have enough labor production hours in the bid and time needed to complete all the work required for our crews to perform the concrete and structural work. Plus, our estimate had a few holes and omissions as several items were missed also costing us lots of money. This is a contractor’s worst nightmare!
Is Your Bid Accurate or Just an Estimate? Has this scenario ever happened to you? All the time, effort, and energy invested winning a nice construction contract or building a loyal customer relationship allowed you to negotiate a project. And then it is wasted with a bad inaccurate or incomplete estimate. When this happens, the boss goes and asks the estimator ‘what happened?’ He likely blames it on the project manager, or the superintendent, foreman,
JANUARY, 2022
subcontractors, suppliers, weather, engineer, the City, bad plans, or his unhappy childhood! So, what do you do? You can’t fire him. You need to continue bidding lots of work to keep the pipeline full. Now what?
What’s Your Estimator’s #1 Priority? 1. Estimate jobs 2. Price jobs 3. Win work 4. Negotiate jobs 5. Be competitive 6. Make a profit 7. Don’t miss anything 8. Good subcontractor & supplier coverage 9. Know what things cost 10. Accuracy Winning work is NOT the estimator’s top priority. The number 1 priority for all estimators must be accuracy! A perfect bid estimate is when the final job cost is exactly the same as the estimate. If your final job cost comes in under budget, is it because of a great crew, good planning, negotiating good material prices, buying out subcontractors cheaper, a padcontinued on page 71
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Estimating continued from page 69 ded bid, inaccurate estimating, or a combination of all of the above? As a contractor, your estimator’s top priority must be to calculate accurate job costs and not miss anything required to complete the contract scope of work. Winning work is not the role of estimators. Their role is to prepare an accurate budget within one or two percent of what the job will cost to build. Then the company management team’s guidelines, goals, and strategies determine the added overhead and profit mark-up to complete the final bid amount. You don’t want your bid to be an estimate of what it might cost plus or minus a fudge factor or a padded fluff amount to cover mistakes, omissions, or unknowns. In a perfect world, the only variable on any bid should be the difficulty factor, and the overhead and profit mark-up. Excellent estimators know what things cost and don’t miss any items. Their bid estimates versus final actual job costs don’t vary more than one or two percent. They look at past estimates and compare them to the final actual results to see how they did, and then make adjustments for their next bid. They visit current jobs in progress to review production issues and also inspect jobsites they’re bidding to look for factors which will affect production. They’re
in constant contact with project managers, field superintendents, foremen, installers, and crews to review how they should arrive at estimated costs on future and potential projects. They continually review labor, material, equipment, subcontractor, and supplier costs to insure they know every possibility for differences in jobs they bid. Review and implement the ‘Profit Builder Circle’ chart to improve your estimating accuracy.
continued on page 72
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Estimating continued from page 71 Profit Builder Circle to Develop Accurate Estimating 1. Calculate Accurate Estimates Accurate estimates are based on the real field production costs of labor and equipment to complete each task required by the project plus materials, tools, supplies, supervision, and subcontractors. The estimated costs are based on a detailed take-off of all the parts and pieces combined with accurate field labor production rates with no guesses, fluff factors, or padded quantities. Tracking job costs must be made by breaking down your work by phase, work type, and production. For example, to accurately estimate and track labor hours to install concrete foundations, the costs must be broken down into separate cost categories for layout, excavation, forming, installing rebar and embeds, pouring, and then stripping the formwork. To keep accurate labor production costs, it is mandatory to track labor hours for each cost code category rather than lump them all together as one cost item. To calculate accurate estimated costs of work, the labor and equipment required must be based on similar past jobs and what it took to complete them.
An ARELLO COMPANY
Estimators must keep a detailed up to date cost history library of all past jobs sorted by job type, difficulty, special conditions, city, customers, and inspectors. A big part of an estimator’s responsibility is to also make sure the bid rates are updated and accurate. A. Accurate Labor Burden Rate: Do you know how your labor burden rate is calculated? Is it accurate or an approximation of what your accounting department thinks it should be? An accurate labor burden rate is essential for accurate estimating. If your rate is padded, your bids will be too expensive, and if it’s not complete you’ll bid too cheap. Each employee has a different burden rate based on their benefits, age, dependents, or tenure at the company. Review all of your field employee’s burden rates for accuracy, and be sure to include accurate: taxes, worker’s compensation insurance, medical insurance, liability insurance, vacation, union dues, safety training, small tools, overtime, and down-time. B. Accurate Crew Bid Rate: Excellent estimators use different crew rates to bid different projects based on what or who the job needs to perform different types of work. A crew on a difficult job needs more experienced workers, while a larger simple project can use less trained crew members. Figure different crew sizes and make-ups to determine your accurate continued on page 73
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Estimating continued from page 72 man-hour crew bid rate. I like to calculate bid rates for 2 – 3 - 5 and 10 men crews. You’ll find your bid rate varies considerably for different field crews and teams so be sure to use the right one for each specific job. C. Accurate Equipment Rates: Good estimators know what equipment can perform per hour and what it really costs. Calculate the actual ownership cost for each piece of equipment from pickup trucks to compressors, cranes, backhoes, or forklifts. Total the initial purchase price for each piece of equipment plus interest cost, maintenance, gas, and insurance over the life of the equipment. Divide this total lifetime equipment ownership cost by the expected number of billable hours you will be able to job charge over the life of the equipment to arrive at your accurate equipment cost per hour. Then add your overhead and profit markup for an accurate equipment bid rate. Then keep track of how much work or production a typical piece of equipment can perform per hour. D. Accurate General Conditions & Mobilization: Many poor estimators don’t verify what their general conditions or mobilization really costs on projects. They too often guess or use a percentage for the cost of job start-up, mobilization, move-on and moveoff, project management, supervision, temporary
facilities, utilities, clean-up, and job close-out. This system produces inaccurate cost estimates. Often unit prices used are outdated, not updated, or don’t match reality in the field. For example, when is the last time you looked at a temporary toilet invoice? It varies by the number of services per month plus the delivery fees. I find on a typical eight month project, general conditions can vary from $5,000 to $25,000 per month or more. Accurate estimating must include a review of what general conditions or mobilization actually costs utilizing input from the field. E. Accurate Overhead: Your company overhead is a fixed amount of money spent for the year to run your business. It is not a percentage of job costs or sales. Excellent estimators know what it costs to keep their company open without any jobs under construction this is your fixed general and administrative expenses or overhead costs. Starting with your total annual overhead cost, divide it by your total projected annual job costs for every job you will build (not sales volume). This percentage will equal the actual overhead recovery markup you need to use to recover all of your overhead expenses for the year. For example: $800,000 projected total annual overhead / $5,000,000 projected annual job costs = 16.0% overhead markup for overhead recovery. Don’t get trapped into thinking continued on page 74
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Estimating continued from page 73 you can use an industry average such as 10% or 20% to cover your overhead costs unless you want to go broke fast. Know your actual accurate overhead markup you need to breakeven and hit your goals at year end. F. Accurate Profit Mark-Up: Profit is the annual fixed amount of money you want to earn for the year. Start every year by deciding how much pretax net profit you want to make over the next year. A good rule of thumb for contractors is to aim at a net profit mark of 40% to 50% return on your total annual overhead budget. For example, if your annual overhead is $800,000, a good net profit target is 50% of your overhead = $400,000 net profit. To determine the profit markup required to hit your goal, divide your total annual projected costs by your annual profit goal to determine the profit markup you need to use. For example: if your annual net profit goal is $400,000, divide it by your projected total annual job cost projection of $5,000,000. ($400,000 / $5,000,000) = 8.0% required profit markup to hit your goals.
2. Job Start-Up To start every project right, hold a pre-job startup ‘Turn-Over Meeting’ where you turn the job over Burke half-page ad 7-31-20.qxp_Dennis Burke Inc the 8/2/20 from Lubricants estimating to the project team. KGather
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estimator, project manager, superintendent, and foreman together to review the estimate, scope of work, inclusions, exclusions, schedule, and contract terms. At this meeting, among the many agenda items, a major priority is to develop the project goals, set the budget, select the required cost codes to track, and develop the job specific timecard for the labor production items you want to track. Have the foreman review the project scope, plans, and estimated labor hours prior to the meeting. Then s/he can help set and agree to the project goals and production budget. For labor and equipment items, develop the job budget and production hours for each cost code for your crew to achieve.
3. Track & Review Job Costs To develop accurate cost information for current job costs and estimating data to bid future jobs, job hours must be current and correct. Excellent estimators know accurate estimating starts with accurate information from the field foreman and crews who do the work. Step one is to insist your timecard is divided into the cost codes you want to estimate with and keep track of. Then, it’s the project manager’s responsibility to insure field workers and foreman are filling out timecards correctly. Regularly meet with job foreman or field superintendents to make sure the 7:45 PM Page 1 continued on page 75
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Estimating continued from page 74
4. Completed Job Cost Review
work time shown is accurate and for the work done in each task’s cost code category. Have timecards filled out and turned in daily. The simplest method is to utilize time tracking software on tablets or cell phones that integrate with your accounting system. The foreman records and approves hours per cost code by task worked on. Next the project manager reviews and approves the time cards to make sure information is accurate and coded properly before it gets into the accounting system. Update & Track Job Cost Weekly: Next setup your job cost tracking system to develop weekly scorecard production hour reports for the field foreman, superintendent, and project manager to review weekly to keep the project on budget. The weekly production scorecard must show the total budgeted hours, hours spent to date, and the projected over or under budget every week. Review your production scorecard every week with the crew foreman, superintendent, and project manager to discuss the current status and how to keep your project on track to hit the budget.
At the completion of every project, the estimator and project team must get together to review and discuss the actual final costs and hours spent versus the job budget and bid production rates estimated for each cost code. This will allow the estimator to make adjustments to the cost history library and improve the estimated bid production rates utilized on future bids. Making this process a priority will develop increasingly more accurate bids.
Want to make lots of money? Make your bid more than a ‘guestimate’ of what it might cost. Implement the complete ‘Profit Builder Circle’ from estimate to budget to job cost to review and adjustment. Be ACCURATE! Make each estimate an exact prediction of what it will take to build every project. n
WEEKLY RECAP JOB Detailed SCOREBOARD - 1 Job Job Name:
PM:
WEEK ENDING:
COST CODE 32002 32005 32010 32015 32020 32050
WORK TASK LAYOUT EXCAVATE FORM SET EMBEDS POUR CLEANUP
TOTAL
SUPT:
FORE:
CREW LABOR HOURS TOTAL BUDGET CREW Quantity Instal l ed HOURS 200 400 1,000 250 300 200
UNIT HOURS HOURS HOURS HOURS HOURS HOURS
2,350 HOURS
FOREMAN ESTIMATED ACTUAL % COMPLETE 100% 75% 50% 20% 0% 0%
TO DATE BUDGETED CREW HOURS 200 300 500 50 -
45% 1,050
TO DATE TO DATE CREW + OVER + HOURS (UNDER ) ACTUAL BUDGET 180 (20) 275 (25) 550 50 60 10 1,065
15
George Hedley CPBC is a certified professional construction BIZCOACH and popular speaker. He helps contractors build better businesses, grow, increase profits, develop management teams, improve field production, and get their companies to work. He is the best-selling author of “Get Your Construction Business To Always Make A Profit!” available on Amazon.com. To get his free e-newsletter, start a personalized BIZCOACH program, attend a BIZ-BUILDER Boot Camp, or get a discount at www.HardhatBIZSCHOOL. com online university for contractors, Visit www.HardhatPresentations.com or E-mail GH@HardhatPresentations. com.
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E.H. Perkins Construction, Inc. & Subsidiaries P.O. Box 301, Wayland, MA 01778 (508) 358-6161 • (781) 890-6505
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Advertisers’ Index ATS Equipment, Inc. .............................................................14 B2W........................................................................................70 Badger Daylighting................................................................18 Benevento Companies..........................................................60 Boro Sand & Stone Corp.......................................................68 Brennan Consulting...............................................................68 Dennis K. Burke, Inc.............................................................. 74 C&S Insurance Agency............................................................8 Concrete Systems, Inc...........................................................24 Core & Main.............................................................................4 Cumberland Quarry Corp...................................................... 17 Dagle Electrical Construction Corp.......................................46 Darmody, Merlino & Co., LLP................................................60 Dedham Recycled Gravel......................................................70 DeSanctis Insurance Agency, Inc. .......................................21 Dig Safe System, Inc.............................................................60 Jack Doheny Company..........................................................73 The Driscoll Agency...............................................................62 EJ...........................................................................................61 Eastern States Insurance Agency, Inc..................................43 Eastpoint Lasers, LLC...........................................................66 T. L. Edwards, Inc..................................................................75 Ferguson Waterworks............................................................64 Genalco, Inc...........................................................................21 Gorilla Hydraulic Breakers.......................................................9 L. Guerini Group, Inc..............................................................27 Henniker Directional Drilling, LLC.........................................62 Hinckley Allen LLP.................................................................12 John Hoadley & Sons, Inc.....................................................63 Hydrograss Technologies Inc................................................72 Ideal Concrete Block..............................................................36 Industrial Safety & Rescue....................................................68 JESCO...................................................................................71 P. J. Keating Company...........................................................34 P. A. Landers, Inc...................................................................42 Lawrence-Lynch Corp............................................................47 Lorusso Corp.........................................................................15 Lorusso Heavy Equipment, LLC............................................28 Mass Broken Stone Company...............................................63 Milton CAT...............................................................Back Cover Monroe Tractor.......................................................................25 NSI Contracting ....................................................................64 National Trench Safety..........................................................26 Norfolk Power Equipment, Inc...............................................35 North American Crane & Rigging LLC..................................20 North East Shoring Equipment, LLC.....................................38 Northland JCB/Alta Equipment Company....... Ins. Back Cover Northwestern Mutual..............................................................15 Ocean State Oil......................................................................53 Palmer Paving Corp...............................................................27 Pawtucket Hot Mix Asphalt....................................................39 E. H. Perkins Construction Co., Inc.......................................76 Pittbos LLC.............................................................................53 Podgurski Corp......................................................................66 E. J. Prescott, Inc................................................Ins. Front Cvr. Putnam Pipe Corporation......................................................49 Rain For Rent-New England..................................................50 Read Custom Soils................................................................ 11 Ritchie Bros. Auctioneers......................................................10 Rodman Ford Sales...............................................................48 Scituate Concrete Products Corp............................................2 Scrap-It, Inc............................................................................57 Shea Concrete Products, Inc. . .............................................54 SITECH New England............................................................44 Starkweather & Shepley Ins. Brokerage, Inc........................16 Taylor Oil Company...............................................................13 Tenna..................................................................................... 11 Tonry Insurance Group, Inc...................................................58 United Concrete Products.....................................................66 United Construction & Forestry, LLC.......................................1 United Rentals Fluid Solutions..............................................58 United Rentals Trench Safety................................................56 Webster Printing & Packaging...............................................58 C. N. Wood Co., Inc. .............................................................52 Woodco Machinery, Inc...........................................................6
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