May 2022 Construction Outlook

MAY | 2022

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UCANE Interview :

• Massachusetts Workers’ Compensation R ate Change • $42.5M Coming to Cape for Water Resource Projects Representative Michael Kushmerek

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MAY, 2022

Years of Excellence 1954-2022

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IN THIS ISSUE

OFFICERS President RYAN McCOURT

McCourt Construction Company

President-Elect BRIAN COONEY

C. C.Construction Inc.

Treasurer CHRIS VALENTI

GVC Construction, Inc.

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 CHB Excavating

ANDREW DANIELS

J. Derenzo Company

GEORGE DeFELICE

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

5 President’s Message: We Will Continue to Make Progress Working Together 7 Legislative Update: • Massachusetts House Passes FY23 Budget; Local Aid, Families and Economic Development Prioritized • Governor Files Economic Development Legislation • Baker-Polito Administration Awards $150,000 in Grants to Help Local Watershed Coalitions Monitor Water Quality • PFAS Interagency Task Force Releases Final Report; Makes 30 Recommendations on a Range of Issues • News in Brief 21 UCANE Interview: Representative Michael Kushmerek (D-Fitchburg) 27 Legal Corner: The Massachusetts SJC Rejects Insurance Coverage Claims for COVID-19 Related Losses 31 UCANE’s 42nd Annual Golf Classic 33 Massachusetts Workers’ Compensation Rate Change 41 Public Works Pipeline: An Interview with Chris Gallagher, DPW Director, Town of Foxborough, MA 49 Safety Corner: Incident Investigation 50 UCANE’s Contractor Member of the Month: DeFelice Corporation 57 Insurance Perspective: The Effects of Covid on the Insurance Industry 61 Gen Z Frenzy 65 Get to Know Your Associate Members: Putnam Pipe, A Dana Kepner Company 67 Technology in Construction: Associations Teaming Up to Help Contractors Improve Equipment Maintenance Results 69 Spotlight on Cape Cod: $42.5 Million Coming to Cape for Water Resource Projects 71 In Charge of Too Much Yourself?

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.

We Will Continue to Make Progress Working Together For this month’s message, I thought it would be appropriate to reprint a letter from UCANE Executive Director Jeff Mahoney to all stakeholders addressing current escalation and supply issues. We must continue to work together in the coming weeks and months.

To All Interested Parties: On behalf of the members of the Utility Contractors’ Association of New England (UCANE), a trade association comprised of over 250 major contractors and associated business men and women who design, build, finance, insure, bond, and supply materials and equipment to the water, sewer, and underground utility construction industry, I write relative to recent industry developments with the design, development, planning, construction, and completion of current and upcoming water, wastewater, and underground utility public works projects.

With the passage of the Federal Infrastructure Investment and Jobs Act (IIJA) and the American Rescue Plan Act (ARPA), additional funding is being made to awarding authorities, whether regional or municipal, to complete critical water, wastewater, and underground utility projects. However, as you are already aware, due to a variety of uncontrollable factors, the construction industry, like many others, is currently experiencing price escalation and supply chain issues resulting in uncertain lead times. But UCANE members continue to be ready, willing, and able to do the work, and believe awarding authorities should take advantage of the additional monies and move forward with these projects without delay.

Flexibility and communication will be crucial if we all hope to maximize the impact of this once-in-a-lifetime funding.

UCANE recognizes and respects that awarding authorities have discretion when it comes to developing their public works projects. However, while the uncertainty remains, we would respectfully request consideration of a tailored approach which may include: •

Adopting a more flexible approach to material selection and project scheduling that could increase the number of bidders for a given project, and could result in lower overall bid prices.

•

Relying on price adjustment clauses, which protect all parties from volatile market conditions by allowing for positive or negative adjustments, as necessary.

•

Embracing time extensions for supply-chain issues to attract prospective bidders who might otherwise determine a project schedule is too aggressive in the current climate.

This short-term flexibility would not only increase the field of bidders competing for a given project, but could also result in lower overall bid prices, which ultimately benefits the taxpayers. Working together, contractors, designers, and awarding authorities can capitalize on this unprecedented level of funding and momentum for critical, long-overdue infrastructure investments. We have been frequently meeting with our municipal associations; they share the same concerns about this challenge that affects everyone.

Thank you for your consideration and attention to this matter. We are proud of our partnership with public works officials and designers and we look forward to continuing to work together to meet the challenges in the months and years ahead.

Respectfully, UTILITY CONTRACTORS’ ASSOCIATION OF NEW ENGLAND, INC. Jeff Mahoney, Executive Director

MAY, 2022

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Massachusetts House Passes FY23 Budget; Local Aid, Families and Economic Development Prioritized

he Massachusetts House of Representatives passed its fiscal year 2023 (FY23) budget at the end of April. According to a press release from House Speaker Ron Mariano’s office, the FY23 House Budget was able to expand services, without raising taxes, due to continued revenue collections that exceed benchmark projections. The revenue growth, combined with increased federal reimbursement, has even allowed the State’s Stabilization Fund to grow to $6.55 billion. Funded at $49.73 billion, the FY23 House Budget makes significant commitments in local aid, while also investing in health care, education, housing, and workforce development, among other priorities.

Of particular note, the FY23 House Budget includes $912 million to fund early education and care (EEC).

Continuing to invest in the workforce, the budget also includes $70 million in rate increases for subsidized child care providers across the Commonwealth, representing a $50 million increase over FY22. The House Budget also includes a new initiative funded at $10 million to pay for child care for early educators. Following the recommendations issued by the Special Legislative Early Education and Care Economic Review Commission, the budget includes language requiring the Department of Early Education and Care to base reimbursement on enrollment rather than attendance.

The FY23 House Budget funds Unrestricted General Government Aid (UGGA) at $1.199 billion and Chapter 70 education funding at $5.988 billion, representing a $494 million increase over the FY22 budget and fully funding the second year of a six-year implementation plan of the Student Opportunity Act (SOA), which was enacted in 2019 to support equitable funding for our most vulnerable students. The budget also provides $110 million for a year-long extension of universal school meals, providing imme-

MAY, 2022

diate relief to families by saving them up to $1,200 every year from reduced grocery expenditures, according to The Feed Kids Coalition.

MassHealth, the state’s Medicaid funding program, remains one of the largest drivers of the budget. In FY23, the House provides $18.40 billion to fully fund MassHealth obligations. The FY23 House Budget reflects an enrollment growth due to the federal extension of the public health emergency, while also factoring in the increased Federal Medical Assistance Percentage (FMAP) reimbursement levels.

The budget also prepares for the transition of individuals from MassHealth to the Health Connector when the federal public health emergency ends by providing $50 million for a Connector Care Pilot Program.

For UCANE’s purposes, the FY23 House Budget funded the Clean Water Trust’s contract assistance line-item funded at $63.8 million, which is level funded from the previous budget year. The Commonwealth’s Rate Relief Program is proposed to be funded at $1.5 million, which still represents an increase over the Governor’s omission of this line-item. As well, the FY23 House Budget funds the Massachusetts Department of Environmental Protection at $41.2 million, which would represent a $7 million increase over the previous budget year. Finally, the FY23 House Budget includes $10 million for the Underground Storage Tank Program, which continues to reduce its backlog of settled claims for those entities that have updated their storage tanks from single lined containers as required by law.

The Massachusetts Senate will take up its version of the FY23 budget in the week before Memorial Day. The House and Senate will then reconcile their proposals before sending it to the Governor before the start of the fiscal year on July 1. continued on page 9

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Governor Files Economic Development Legislation

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he end of April saw Governor Charlie Baker file legislation (HB4720) to make $3.5 billion in investments to support the Commonwealth’s transition into a post-pandemic world, including projects to strengthen state infrastructure, create jobs, and invest in all 351 cities and towns in the Commonwealth.

The legislation, An Act Investing in Future Opportunities for Resiliency, Workforce, and Revitalized Downtowns (FORWARD), includes $2.3 billion in funding from the Federal American Rescue Plan Act (ARPA) and over $1.256 billion in capital bond authorizations.

Specifically, the FORWARD bill includes $1.2 billion in ARPA funds for climate resiliency and preservation efforts. This includes a $750 million investment in the Commonwealth’s clean energy industry. This funding will be utilized for a variety of areas within the sector, such as electric vehicle rapid charging stations at Logan International Airport, the expansion Burke half-page 7-31-20.qxp_Dennis K Burke Inc 8/2/20 of theLubricants MassCEC WindadTechnology Training Center in

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Charlestown, over $70 million in investments related to the New Bedford Marine Terminal, and a greater focus on higher education and workforce training in an effort to support the burgeoning clean energy industry. The bill also proposes $413 million to support over 100 projects across state parks and trails, water and sewer, and environmental infrastructure grant programs.

The FORWARD legislation also proposes nearly $970 million for investments to support revitalizing the Commonwealth’s downtowns and communities, including $318 million in ARPA funding and $650 million in bond authorization. This includes $550 million for the MassWorks program, including $400 million in reauthorization and $147 million in ARPA funds to support 94 local projects. Nearly 250 municipalities will receive downtown recovery grants totaling $108 million. The Baker-Polito Administration commissioned a Future of Work report last year that found that downtowns will look fundamentally different com7:45 PM Page 1 continued on page 11

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Legislative Update continued from page 9 ing out of the COVID-19 pandemic, as many people have changed how and where they work. This funding will help municipalities adapt to this new reality.

The legislation also includes $325 million in ARPA funding for workforce efforts, including $300 million for the Unemployment Trust Fund to address unemployment overpayments. The HireNow program, which provides grants to employers to train and hire new workers, would receive $25 million in additional funds. The FORWARD bill includes $270 million in authorization to support housing production across the Commonwealth, including affordable rental housing production and rehabilitation, public housing, climate resilient housing, and transit-oriented development. The bill also makes several policy proposals to increase housing production, including an increase of the cap on the Housing Development Incentive Program from $10 million to $30 million.

The bill proposes significant funding to support the Commonwealth’s innovation economy including $50 million for a new competitive and secure future innovation program to make strategic investments in purpose-driven research, technology development, and innovation, and in emerging technologies such

as artificial intelligence and machine learning (AI/ ML), robotics, quantum information science, cybersecurity, communications, and digital health.

Finally, the Governor’s proposal would allow the Massachusetts Convention Center Authority to sell the Hynes Convention Center, with proceeds from the sale going to affordable housing development and the Back Bay area. Occupancy levels at the Hynes fluctuated around 60% before the pandemic, and numbers have still not recovered.

ARPA funds must be committed by states by the end of 2024 and spent by the end of 2026. According to the press release issued by the Governor’s Office, this legislation prioritizes investing ARPA funding into projects that are already sufficiently defined and narrow in scope so they can be completed by 2026.

The Massachusetts legislature historically considers an economic development bill of some sort within the last year of each legislative session. The Governor’s legislation, which was referred to the Joint Committee on Economic Development, will hold a public hearing on the measure before recommending a package of its own.

To review the Governor’s legislation, please visit: https://malegislature.gov/Bills/192/H4720. continued on page 13

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Legislative Update continued from page 11

Baker-Polito Administration Awards $150,000 in Grants to Help Local Watershed Coalitions Monitor Water Quality

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s part of the Commonwealth’s “Earth Week” celebration, the Baker-Polito Administration announced that $150,000 in Water Quality Monitoring Grant Program funding has been awarded to four coalitions of watershed monitoring groups to aid in the testing of water quality in rivers, lakes and ponds, and coastal resources across the Commonwealth. The grant program, which is administered by the Massachusetts Department of Environmental Protection (MassDEP), will support waterbody monitoring efforts in eastern Massachusetts, Buzzards Bay and Cape Cod, and the Berkshires.

The resulting water quality data will help MassDEP to implement program requirements under the federal Clean Water Act. The grant program is available to eligible non-profit organizations, including watershed groups, lake and pond associations, and

federally recognized Tribal Nations within the Commonwealth with expertise for conducting surface water quality monitoring projects.

The grant recipients and project awards include: •

The Ipswich River Watershed Association, in partnership with the Parker River Clean Water Association, and the Chebacco Lake Watershed Association ($38,306). This grant will allow the coalition to collect data on chloride, nutrients, chlorophyll-a, and bacteria and perform continuous dissolved oxygen and temperature monitoring in the Parker, Ipswich, and Essex rivers watersheds, and help purchase equipment and supplies to support staff activities for monitoring, training and analysis. continued on page 15

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Legislative Update continued from page 13 •

The North and South Rivers Watershed Association, in partnership with the Charles River Watershed Association, the Center for Student Coastal Research, Mystic River Watershed Association, Nashua River Watershed Association, Neponset River Watershed Association, and OARS, for the Assabet, Sudbury and Concord Rivers. ($51,960). This grant will be used to expand the coalition’s capacity for continuous monitoring of conductivity to evaluate chloride in streams and rivers and to support existing monitoring for bacteria in waterbodies in eastern Massachusetts.

•

The Housatonic Valley Association, in partnership with the Berkshire Environmental Action Team, and the Hoosic River Watershed Association ($43,625).

This grant will allow the coalition to monitor for conductivity, temperature, and bacteria in the Housatonic and Hoosic watersheds in Berkshire County and develop an interactive map for data presentation to the public.

ship with the Wampanoag Tribe of Gay Head, Aquinnah, and Tisbury Waterways, Inc. ($16,109). This partial grant will be used to continue existing monitoring activities and to build new capacity to collect high resolution water quality data in Buzzards Bay, and the Cape Cod and Islands watersheds.

Watersheds across the Commonwealth must be assessed every two years. With more than 3,000 lakes and ponds, 12,000 miles of streams and rivers, and nearly 3,000 square miles of coastal waters in the Commonwealth, MassDEP’s Watershed Planning Program can sample only a fraction of these waters in any given year. MassDEP supplements its own surface water quality dataset with data collected by key stakeholders. Internal and certain external data meeting MassDEP’s acceptance criteria are used as the basis for assessing surface water quality in accordance with requirements under the federal Clean Water Act. Over four years, the Water Quality Monitoring program has provided more than $650,000 in grants to organizations across the Commonwealth.

For more information on MassDEP’s watershed monitoring and assessment programs, please visit: https://www.mass.gov/guides/watershed-planningprogram.

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PFAS Interagency Task Force Releases Final Report; Makes 30 Recommendations on a Range of Issues

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stablished in an outside section of the fiscal year 2021 budget, the Commonwealth’s PFAS Interagency Task Force (Task Force) issued its final report in April. Charged with studying the impacts and necessary actions to remediate per- and polyfluoroalkyl substances (PFAS), the Task Force made 30 recommendations as to actions necessary to identify the chemicals, remediate them and, in some cases, hold accountable those who allowed for the spread of PFAS. As stated in its report, the Task Force held nine public hearings to investigate PFAS detection in multiple environmental media, known and potential exposure pathways, associated health and environmental impacts, possible sources of contamination, state and federal action, costs and challenges, and potential solutions throughout 2021. The Task Force, which was composed of state officials and experts, heard testimony from a wide range of stakeholders, including researchers, advocacy groups, community members, municipal officials, state agencies, public water systems, industry groups, and legislators.

Based on its findings, the Task Force recommended a set of measures for the Commonwealth of Massachusetts to implement in order to protect public health and the environment from PFAS contamination.

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addressing accountability for PFAS contamination, and enhancing public awareness of PFAS. Senator Julian Cyr and Representative Kate Hogan co-chaired the Task Force. The recommendations were adopted unanimously by the Task Force, a sign that the group covered a wide enough range of issues that appealed to each member in some manner or another. Next steps for addressing the PFAS issue will undoubtedly require significant additional funding. Since 2018, Massachusetts has allocated nearly $30 million to address PFAS contamination while making an additional $100 million available as loans through the Clean Water Trust.

To review a copy of the PFAS Task Force Report, please visit: https://malegislature.gov/ Bills/192/SD3117.pdf continued on page 19

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News in Brief •

•

Theoharides Steps Out; Card Steps In. Massachusetts Energy and Environmental Affairs Secretary Kathleen Theoharides announced that she is resigning her position effective May 6. Ms. Beth Card, the Undersecretary of Environmental Policy and Climate Resilience, will take over that same day as Governor Baker's third head of the Executive Office of Energy and Environmental Affairs. Among other accomplishments, Ms. Card has played a significant role in the Commonwealth’s efforts to address its water infrastructure needs. She served as the Director of Environmental and Regulatory Affairs for the Massachusetts Water Resources Authority before joining the Baker-Polito Administration in 2021. Ms. Card holds degrees from the University of New Hampshire and the Massachusetts School of Law. Staff Changes in the Speaker’s Office. House Speaker Ron Mariano announced a number of staff changes in April. Long considered one of the premier offices to work in within the legislature, the Speaker’s Office announced that Mr. Chris Torri is the House Speaker’s new Legislative Director as his predecessor, Mr. Rich Gould, took a position as Director of Investor Relations with RISE Construction.

Speaker Mariano also announced the promotion of Press Secretary Ms. Ana Vivas to Communications Director and Mr. Joe Masciangioli to General Counsel and Senior Policy Advisor. Ms. Sarah Sabshon, the Speaker’s health care policy expert, recently left the office with news pending of a new position within the policy world.

•

Lepore to Private Sector; Buckley is Governor’s New Chief of Staff. The Governor’s longtime Chief of Staff, Ms. Kristen Lepore, announced that she will join Beth Israel Lahey Health at the start of May as the Executive Vice President and Chief Administrative Officer. Lepore will oversee human resources, information technology, marketing and communications. Taking Ms. Lepore’s place will be longtime confidante, Mr. Tim Buckley. Prior to being named Chief of Staff, Mr. Buckley served as Senior Advisor for Governor Baker and Lieutenant Governor Polito for the past five years. In that role, Mr. Buckley was responsible for communications strategy, legislative affairs, and federal affairs for the Executive Branch, as well as advising the Governor and Lieutenant Governor on a wide range of policy issues. Upon taking office in 2015, Governor Baker named Mr. Buckley as Communications Director. n

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Representative Michael Kushmerek (D-Fitchburg)

Representative Kushmerek first took office as State Representative for the 3rd Worcester District (Fitchburg and Lunenburg, Precinct B) in January 2021. Prior to his role in the state legislature, he served as a Fitchburg City Councilor from 2014-2021, including five years as Council President.

He is passionate about students’ access to affordable higher education opportunities, so he pursued a career in Higher Education Administration and Development at Northeastern University, Worcester Polytechnic Institute, and Fitchburg State University, where he earned a Bachelor’s Degree and a Master’s Degree in History. The Representative is married to Carissa Kushmerek, a licensed social worker and Program Director at Aging Services of North Central Massachusetts.

As a high school dropout, and the product of a home that battled substance abuse, mental health and homelessness, he is passionate about dismantling financial and socioeconomic barriers to success and ensuring that everyone has an equitable opportunity to pursue their dreams and goals.

Q:

While the Federal Infrastructure Bill provides a much needed short term funding, as costs continue to rise, please give your thoughts on how the state will continue to support local aid to cities and towns to help support basic municipal services, specifically drinking water, wastewater, and underground utility infrastructure.

A:

During my eight years on the Fitchburg City Council, drinking water, wastewater, storm water, and high-speed internet were frequent topics of discussion and municipal need. Like many communities, Fitchburg has struggled, in the decades since Proposition 2½ limited the ability of municipalities to respond to Federal and State decrees to modernize underground utilities. As a result, we fell behind in making necessary upgrades and maintenance, and now with massive upgrades looming, “the bill has come due,” and it comes at an enormous expense to taxpayers and water/ sewer ratepayers alike.

I believe these federal funds provide a once in a generation opportunity to help municipalities, like Fitchburg, accomplish these large capital expenses, particularly for water, sewer, storm water upgrades as well as broadband expansion. The Federal Infrastructure Bill will provide more than MAY, 2022

$1.1 billion to Massachusetts to improve water infrastructure, and it will be incumbent upon the State to ensure that these funds are efficiently and expeditiously allocated and released to municipalities. Under the strong leadership of House Speaker Ronald Mariano, the legislature recognized the need for the state to invest in these areas as well. In December 2021, the State committed another $100 million for water and sewer infrastructure investments, $100 million for environmental infrastructure investments, and another $50 million for broadband expansion.

Q: A:

What are the greatest challenges for your district and region with regard to continued economic recovery and future growth?

In addition to the costly, but necessary, upgrades for Fitchburg to comply with MS4 permits, transportation infrastructure, job growth and creation, and housing all present North Central Massachusetts with challenges and opportunities alike.

With more than 260 miles of road between Fitchburg and Lunenburg, and hundreds of bridges, dams, and culverts, my district must strike a balance between infrastructure repair and economic reinvestment. continued on page 23

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Interview continued from page 21 Simultaneously, the Commonwealth is facing a housing crisis, one that is intensified in North Central Massachusetts. The region has become an attractive and affordable alternative to the Greater Boston area and as a result there is a high demand for both market rate options, as well as workforce and affordable housing. As a region, we’re working collaboratively across government, public, and private sectors to meet these demands head-on. In Fitchburg alone, hundreds of units of new housing, both market rate and affordable, are already permitted or in development. The Gateway Cities Legislative Caucus, under the leadership of co-chairs, Representative Cabral and Senator Lesser, is urging massive investment in the Housing Development Incentive Program (HDIP). Programs like HDIP provides Gateway Cities with a tool to develop market rate housing while increasing residential growth, expanding diversity of housing stock, supporting economic development, and promoting neighborhood stabilization in designated areas.

Q:

The construction industry continues to deal with workforce development issues as it searches for the next generation of workers.

How do you think we can address this issue and make sure that the construction industry and trades are able to fill these much needed jobs in the coming years?

A:

There isn’t a single meeting or day that we, as legislators, are not talking about workforce development. There are critical shortages in nearly every sector of our Commonwealth right now and I have a difficult time finding an employer who isn’t struggling to hire skilled employees.

As of late, our technical and vocational schools have excelled in sending students to college, but unfortunately have lagged behind in addressing the looming workforce crisis in our trades. We need to address this head-on and, fortunately, I believe that there are additional solutions that we can pursue to immediately help ease the shortage for skilled trade workers.

My regional partner, Senator John Cronin, has been an absolute champion of expanding the Innovation Pathways Program that gives high school students tailored coursework and experience in a high demand industry.

Innovation Pathways allows traditional high schools to offer new skills-based programs that do not compete with vocational schools, but rather creates a regional complement to the array of offerings. As a result of this program, we’ve seen Fitchburg High School develop a water operator track to help local DPWs fill the looming job vacancies in an aging field. continued on page 25

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Interview continued from page 23

Q: A:

Can you share some of your other priorities for the rest of this legislative session?

Because of my lived experiences, particularly as a past caregiver to my two parents, I am passionate about mental health and substance use recovery.

On any given day in the Commonwealth, we have more than 200 individuals boarding in emergency room departments awaiting long-term behavioral healthcare. This crisis exists not just because we don’t have enough beds or facilities, but also because we don’t have enough skilled behavioral health and social workers to staff the beds that we do have.

I’m also working on a bill that I filed that would require funeral directors to make available to potential clients information regarding funeral and burial benefits for veterans. While many funeral home directors perform their due diligence and explain the available veterans’ burial benefits, there are dozens of examples within my district, and many more across the Commonwealth, where this does not occur. All too often, once a family has made the arrangements for, or buried, their veteran loved one, they will contact a veteran’s agent for financial assistance. By then it is too late and no benefit can be awarded. This Chapter 115 benefit is to honor the service and sacrifices of our armed forces veterans, and I believe that we must do everything within our ability to ensure that families have access to, and knowledge of this benefit. n

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The Massachusetts SJC Rejects Insurance Coverage Claims for COVID-19 Related Losses As reported in a recent client alert, the Massachusetts Supreme Judicial Court (SJC) issued a decision on April 21, 2022 addressing whether property insurance policies afforded coverage for alleged losses stemming from the COVID-19 pandemic.

Based on the coverage grants in the policies at issue, the SJC concluded that the policies did not cover the plaintiffs’ alleged losses. While the case did not arise in the construction context, it remains noteworthy. Contracting parties are sometimes quick to conclude that they are “insured” or “covered” without actually inspecting particular policy terms or conditions. The SJC’s decision re-confirms that the express words of a given insurance policy matter.

T

he case involved three restaurants that shared common ownership and management. At the onset of the COVID-19 pandemic, all three restaurants had property and liability insurance policies. One of the three policies had a specific “virus” exclusion, while the other two did not.

The restaurants contended that the policies were “‘marketed and sold’ as all-risk policies,” but the SJC noted that the policies did not include the term “all-risk.” The restaurants bore the burden of demonstrating coverage under the specific language of the policies, which provided coverage for “direct physical loss of or damage to” covered property at the insured premises “resulting from any Covered Cause of Loss” (defined to include “Risks of Direct Physical Loss”).

The restaurants claimed to have incurred losses as a result of the pandemic and its resulting impacts, including governmental stay-at-home orders shutting down non-essential businesses. Although two of the restaurants remained open for takeout and delivery services, it was not feasible for the third restaurant to remain open for takeout and delivery given its locaMAY, 2022

tion. The absence of in-person dining led to a “steep decline” in revenues. As a result, the restaurants asserted claims under their policies. The claims were denied.

The Superior Court concluded that the policies in question did not afford coverage due to the absence of “direct physical loss of or damage to” covered property. The SJC agreed. According to the SJC, “direct physical loss” requires some “‘distinct, demonstrable, physical alteration of the property.” The Court noted that “[e]very appellate court that has been asked to continued on page 29

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Legal Corner continued from page 27 review COVID-19 insurance claims has agreed with this definition . . . .” In the SJC’s view, the suspension of business operations at the restaurants “was not in any way attributable to a direct physical effect on the plaintiffs’ property that can be described as loss or damage.” The Court also concluded that the COVID-19 shut-down orders did not constitute direct physical loss of or damage to property sufficient to trigger coverage under the policies.

The SJC’s decision underscores the importance of the specific policy language at issue – including grants of coverage unique to particular polices – when evaluating questions of coverage. Ensuring appropriate placement and policy coverage is critical. Not only should contractors be sure to understand their own policies, they should take appropriate steps to confirm that their subcontractors comply with applicable insurance requirements and secure all required coverage. It is advisable to consult with an experienced insurance professional to help navigate the many issues that can arise in the insurance context. With respect to both business and personal matters, a trusted insurance advisor can be a valuable asset in mitigating risk and optimizing coverage in the event of a loss. n

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7/1/2022 Massachusetts Workers’ Compensation Rate Change The Massachusetts Commissioner of Insurance has approved a Stipulation for the general revision of workers’ compensation rates, effective 12:01 A.M., July 1, 2022, applicable to new and renewal policies.

Average Rates

Experience Rating Plan Changes

The overall average decrease of 3.46% will vary by industry group as follows:

The Experience Rating Plan Expected Loss Rates and D-Ratios have also changed. These rates and ratios are used in calculating experience rating factors (experience mod. and ARAP) and are a significant component in determining the final premium for an experience rated risk. Expected loss rates used in calculating experience factors decreased by an average of 2.0% over all industry groups.

There were also changes in the Weight and Ballast Tables used in calculating experience factors, the per claim accident limitation increased from $300,000 to $350,000 and the primary/excess split increased from $5,000 to $7,500.

A risk is eligible for experience rating when the payrolls or other exposures developed in the last year or last two years of the experience period produced a premium of at least $11,000. If more than two years, an average annual premium of at least $5,500 is required.

Experience mods and ARAPs already issued effective 7/1/2022 or after on a preliminary basis will be recalculated to reflect the new Expected Loss Rates.

Industry Change Manufacturing

-2.0%

Construction

-2.8%

Office & Clerical

-4.9%

Goods & Services

-3.9%

Miscellaneous

-4.1%

Average rates include adjustments for experience factors, the construction class credit and other factors.

Change in Manual Rates The overall decrease in manual rates by industry group is: Industry Change Manufacturing

-1.1%

Construction

-1.4%

Office & Clerical

-2.6%

Goods & Services

-2.9%

Miscellaneous

-3.2%

The changes by class, even within the same industry group, vary substantially.

Following is a list of the more common classifications we work with and the new manual rates per $100 of payroll. The rates for all Massachusetts classes can be found at www.wcribma.org, the web site of the Workers’ Compensation Rating and Inspection Bureau of Massachusetts, on their Class Code Lookup page.

MAY, 2022

Small Deductible Credits The premium credits applicable to the election of small deductibles under either the Massachusetts Benefits Deductible Program or the Massachusetts Benefits Claim and Aggregate Deductible Program have been revised. The deductible credits will be: Benefits Deductible Coverage Program Deductible Amount

Credit

$500

2.0%

$1,000

3.6%

$2,000

5.9%

$2,500

6.9%

$5,000 11.2% continued on page 35

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MAY, 2022

Workers’ Comp. Rates continued from page 33

There were no changes in the following:

Benefits Claim and Aggregate Deductible Program

•

Expense Constant

•

Loss Constant

Under this program, a per claim deductible of $2,500 applies subject to an aggregate of $10,000.

For policies with an estimated annual standard premium over $200,000, the aggregate is 5% of the estimated annual standard premium.

•

Admiralty Law and Federal Employers’ Liability Act classifications

•

Merit Rating Program

•

Massachusetts Construction Classification Premium Adjustment Program

•

Premium Discount Tables A and B

Estimated Annual Standard Premium

Credit

$0 to $75,000

6.8%

$75,001 to $100,000

6.4%

$100,001 to $125,000

6.0%

$125,001 to $150,000

5.5%

$150,001 to $200,000

4.9%

over $200,000

4.5%

Other Factors There were changes to the Retrospective Rate Plan as well as an overall average decrease in FClasses rates of 9.1% and a decrease in the United States Longshore and Harbor Workers’ (USL&H) factor for non-F classes to 19.6%. For details, see the Bureau’s web site at www.wcribma.org.

It is important to remember this rate change will affect each insured differently and premium changes will vary.

Please consult with your account manager to review how this change will affect you.

Submitted by Lou Tonry, Tonry Insurance Group, Inc. n continued on page 37

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MAY, 2022

MASSACHUSETTS WORKERS’ COMPENSATION RATES

Massachusetts Compensation Rate SelectedWorkers’ Rates per $100 of Payroll Selected Rates per $100 of Payroll

Class 8901 7600 5472 5473 1463 8232 8058 8204 5703 9014 9015 5437 5645 5403 2802 5610 8810 5222 5213 5221 5215 6325 8227 5102 6229 6204 7380 5190 5160 8601 6217 5606 6400 5478 5146 5462

Description Alarm System Company - Office Alarm System Installation or Repair Asbestos Removal - Pipe & Boiler Asbestos Removal NOC Asphalt Works & Drivers Building Material Dealer - New Materials Building Material Dealer - Store Building Material Yard Building Raising or Moving Buildings Operations By Contractors Buildings Operations By Owners Carpentry - Cabinet Work, Interior Trim, Wood Flooring Carpentry - Dwellings 3 Stories or Less Carpentry - Residential > 3 Stories or Commercial Carpentry - Shop Cleaner Debris Removal Clerical NOC Concrete - Bridge Construction Concrete Construction NOC Concrete Floors, Driveways Concrete Work - Private Residence Conduit Construction-Cable or Wires Contractors Permanent Yard Door, Door Frame, Sash Erection Drainage or Irrigation Systems Drilling NOC Drivers NOC Electrical Wiring – Within Buildings Elevator Erection or Repair Engineer or Architect - Consulting Excavation / Grading of Land Executive Supervisor Fence Erection Floor Covering Installation Furniture or Fixture Installation Glazier

$0.08 $3.54 $8.98 $11.70 $8.27 $4.75 $2.58 $4.89 $24.80 $2.66 $2.99 $4.86

$0.07 $3.97 $9.27 $10.25 $8.98 $5.53 $2.44 $4.23 $21.41 $3.01 $3.17 $5.52

$0.07 $2.96 $8.75 $10.55 $8.79 $5.81 $2.18 $4.49 $14.57 $2.28 $2.89 $4.49

$0.06 $3.18 $7.50 $9.31 $9.62 $5.10 $2.00 $4.92 $10.77 $2.01 $2.70 $3.84

$0.06 $3.26 $7.02 $8.19 $10.40 $4.77 $1.98 $5.37 $10.17 $1.85 $2.59 $3.38

% Change 20 to 22 0.0% 2.5% -6.4% -12.0% 8.1% -6.5% -1.0% 9.1% -5.6% -8.0% -4.1% -12.0%

$8.06 $9.86

$8.11 $11.00

$7.10 $7.64

$6.35 $7.77

$6.09 $8.17

-4.1% 5.1%

$3.93 $5.57 $0.08 $8.93 $17.50 $6.40 $4.95 $4.49 $4.03 $6.40 $4.46 $9.01 $6.17 $2.74 $3.91 $0.29 $4.46 $1.66 $6.55 $4.80 $5.48 $8.89

$4.42 $6.49 $0.07 $10.40 $15.46 $6.77 $5.65 $4.79 $4.70 $6.12 $4.56 $7.78 $6.08 $2.61 $3.37 $0.27 $4.53 $1.87 $6.00 $5.59 $6.38 $7.70

$3.67 $5.66 $0.07 $8.58 $11.97 $6.97 $4.33 $3.41 $4.79 $6.12 $3.77 $5.85 $5.96 $2.17 $2.75 $0.21 $4.03 $1.47 $4.71 $4.18 $6.57 $6.18

$3.20 $4.19 $0.06 $9.21 $10.42 $6.12 $3.76 $2.56 $4.26 $6.12 $3.56 $4.79 $5.32 $2.05 $2.27 $0.19 $3.96 $1.22 $4.42 $3.63 $6.50 $5.19

$3.14 $4.17 $0.06 $8.31 $10.30 $5.99 $3.83 $2.35 $4.66 $5.72 $3.52 $4.80 $5.25 $2.17 $2.48 $0.17 $3.98 $1.16 $4.37 $3.19 $6.13 $5.04

-1.9% -0.5% 0.0% -9.8% -1.2% -2.1% 1.9% -8.2% 9.4% -6.5% -1.1% 0.2% -1.3% 5.9% 9.3% -10.5% 0.5% -4.9% -1.1% -12.1% -5.7% -2.9%

4/1/14 Rate

7/1/16 Rate

7/1/18 Rate

7/1/20 Rate

7/1/22 Rate

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Massachusetts Workers’ Compensation Rate Selected Rates per $100 of Payroll

Class 4000 5479 5040 5057 5059 3030 3041 3040 6005 0042 8820 9102 5022 3724 9534 8742 5474 6003 5480 5183 1624 9079 5547 5545 7720 6306 5538 9552 5188 9402 5507 5506 5348 0106 7219 5445 6319 7520 3365

Description Gravel & Sand Digging Insulation Work Iron or Steel Erection Iron or Steel Erection NOC Iron or Steel Erection: Not over 2 Stories Iron or Steel Shop - Structural Iron Works - Shop - Decorative Iron Works - Shop - Ornamental Jetty or Breakwater Construction Landscape Gardening Law Office Lawn Maintenance Masonry NOC Millwright Work NOC Mobile Crane Hoisting Service Outside Sales Painting or Paper Hanging NOC Pile Driving Plastering Plumbing NOC Quarry NOC Restaurant Roofing - Built-Up Roofing NOC Security Enforcement or Protection Sewer Construction Sheet Metal Work - Shop & Outside Sign Mfg - Erection, Repair, Maintenance Sprinkler Installation Street Cleaning Street or Road Construction Street or Road Paving Tile, Stone or Mosaic Work Tree Pruning Trucking NOC Wallboard Installation Water / Gas Main or Connection Construction Waterworks Operation Welding NOC

4/1/14 Rate $4.41 $7.98 $55.49 $30.63 $30.63 $7.24 $4.25 $7.03 $6.16 $4.11 $0.09 $2.47 $9.80 $5.09 $5.75 $0.16 $5.22 $11.99 $4.80 $3.25 $5.34 $1.15 $15.85 $31.79 $1.90 $7.81 $5.31 $7.92 $4.24 $5.40 $7.24 $7.09 $5.93 $15.80 $9.10 $7.43 $4.66 $3.46 $8.98

7/1/16 Rate $4.29 $8.90 $59.07 $26.45 $26.45 $6.16 $4.74 $5.98 $6.52 $4.09 $0.09 $2.66 $9.70 $4.99 $6.70 $0.16 $5.66 $10.46 $4.64 $3.45 $4.64 $1.09 $13.68 $37.05 $1.71 $9.10 $4.58 $6.94 $4.94 $4.80 $7.64 $6.85 $5.12 $13.63 $9.77 $6.90 $4.48 $3.16 $7.75

7/1/18 Rate $4.48 $6.92 $24.00 $21.61 $16.69 $5.47 $3.40 $4.52 $4.51 $3.55 $0.08 $2.49 $9.60 $5.08 $5.29 $0.12 $4.25 $9.15 $4.04 $2.93 $3.60 $1.03 $11.44 $35.68 $1.34 $8.09 $3.82 $7.12 $4.32 $3.92 $5.60 $5.20 $4.15 $10.05 $8.41 $6.08 $3.55 $2.77 $5.73

7/1/20 Rate $4.55 $5.12 $19.85 $20.97 $18.13 $5.20 $2.61 $4.08 $3.75 $3.14 $0.07 $2.02 $8.93 $4.60 $4.98 $0.10 $3.71 $7.82 $4.38 $2.82 $3.29 $0.92 $10.00 $37.71 $1.29 $6.71 $3.89 $6.67 $3.65 $3.61 $5.20 $4.33 $3.85 $8.71 $7.58 $5.60 $2.81 $2.64 $4.43

7/1/22 Rate $4.92 $4.98 $18.99 $18.45 $19.81 $4.68 $2.35 $4.41 $3.84 $2.88 $0.06 $1.79 $9.14 $4.05 $4.87 $0.09 $3.69 $6.94 $4.21 $2.84 $3.35 $0.86 $10.07 $41.21 $1.30 $7.34 $3.77 $6.11 $3.53 $3.43 $4.99 $4.73 $4.21 $8.37 $6.66 $5.80 $2.51 $2.56 $4.19

% Change 20 to 22 8.1% -2.7% -4.3% -12.0% 9.3% -10.0% -10.0% 8.1% 2.4% -8.3% -14.3% -11.4% 2.4% -12.0% -2.2% -10.0% -0.5% -11.3% -3.9% 0.7% 1.8% -6.5% 0.7% 9.3% 0.8% 9.4% -3.1% -8.4% -3.3% -5.0% -4.0% 9.2% 9.4% -3.9% -12.1% 3.6% -10.7% -3.0% -5.4%

NOC = Not Otherwise Classified

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MAY, 2022

An Interview with Chris Gallagher DPW Director Town of Foxborough, MA Will you provide us some insight into your background, education, and history that led you into your current position?

I began my public works career as a 20-yearold intern with the Town of Westwood DPW. After three years of Mechanical Engineering studies at WPI, I went looking for a summer internship. After not finding anything of interest in the private engineering industry, I heard my hometown of Westwood typically hired college students for Co-Ops. It didn’t take long for me long to realize I had a passion for civil engineering and public works. I graduated Worcester Polytechnic Institute with my Bachelors Degree in Mechanical Engineering in 2003 and began work on my masters in Civi Engineeringl. In 2004, I was hired full time as the Westwood Assistant Town Engineer.

In 2010, the Director, Highway Superintendent, and Town Engineer all retired within three months. It was then I realized my desire to add the human resources component of being a DPW Director. I was the Westwood Deputy Director of Public Works from 2010-2014.

In 2014, an opportunity came along to become the Town Engineer for Foxborough, where I purchased my first home a few years earlier to raise my family. In 2019 the DPW Director retired and I was promoted to my current role of Foxborough DPW Director.

Please give us a brief description of Foxborough regards make-up of the DPW, population, and infrastructure statistics?

The Town of Foxborough has a population of 18,600 residents (2020 Census) and has a town meeting form of government with an elected Board of Selectmen, Board of Water and Sewer Commission, and Town Manager. The Foxborough Public Works Department consists of multiple divisions that include MAY, 2022

Highway, Tree and Park, Water and Sewer, Equipment Maintenance, and Engineering. We maintain 120 miles of water mains, 22 miles of sewer mains, a reuse water system that serves Patriot Place including Gillette Stadium, 100 miles of roads, 70 miles of sidewalks, over 200 acres of fields and green space, and we have over 170 pieces of equipment and vehicles that include school buses and police vehicles.

What do you currently see as the most pressing infrastructure needs for the Town in the next few years, and is there a 5-year Asset Management Plan in place to address those needs?

The Foxborough Board of Water and Sewer Commission set a goal and has been dedicated for the last 10-15 years to resolve the “dirty water” and low production problems caused by high levels of iron and manganese found in our groundwater wells.

Foxborough has spent over $40 million since 2008 to construct three green sand water filtration plants, reconstruct nine of the 13 permitted wells, construct new and structurally line existing water mains, put two excontinued on page 43

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MAY, 2022

Public Works Pipeline continued from page 41 isting water storage tanks under 15-year maintenance agreements, and to construct a new 1.1 MG storage tank that will run in parallel with an existing 3 MG tank.

With all that the community has spent and accomplished on water in the recent past, Foxborough still has over 25 miles of asbestos cement water main and an additional 30 miles of cast iron pipe that is beyond its design life of 50 years. This unseen (buried) aging infrastructure along with the newly formed, and over-reaching DEP PFAS regulations are putting Foxborough and almost every other water utility in Massachusetts behind once again. If the MassDEP PFAS levels are triggered in Foxborough it may re-

quire $10-$15 million at each water treatment plant location. The citizens/ratepayers in Foxborough cannot sustain that type of an increase.

Beyond the water infrastructure, Foxborough residents are also requesting an increase in sidewalk reconstruction. Chapter 90 funding needs to be increased. The state needs to increase the $200 million funding level to help each and every city and town improve their local transportation system. It also needs to be sent directly to those towns that have spent years crafting short- and long-term plans to make these improvements.

How has your municipality historically funded infrastructure projects?

Does the Town utilize the SRF Loan Program through MassDEP for water infrastructure projects?

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Foxborough Water and Sewer has been funding projects locally through bonding. Foxborough received a AAA bond rating and has been able to receive bonds averaging 2% and typically these water and sewer loans have been done in conjunction with other town projects. When Foxborough adopted a local meals tax it was voted to be used for OPEB’s (Other Post-Employment Benefits) and roadways.

This additional funding has allowed Foxborough to increase funding spent on the pavement management plan over the underfunded Chapter 90 program. As meals tax declined over the last two years so did Foxborough’s ability to improve on our annual pavement management plan and RSR (Road Surface Rating) program.

Foxborough has six regulated dams. The state mandates to perform inspections and repairs have gone generally unfunded. We have applied for and received funding for design and reconstruction of the West Street Dam. This will be reconstructed in 2022. We are hopeful the state Dam and Seawall grant program will grow and allow funding to be utilized for Phase 1 and Phase 2 inspections along with design and construction. continued on page 45

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MAY, 2022

Public Works Pipeline continued from page 43 As you know the long-awaited bi-partisan “Infrastructure Bill” was passed earlier this year and will be providing Massachusetts cities and towns with substantial funding opportunities for roadways, bridges, water, and sewer projects for the next five years (minimum). Is Foxboro weighing in at the statehouse for these funds, and does the DPW have some “shovel-ready” projects available for 2022 if necessary?

Our hope is that the bill allows for municipalities to spend the funding in the best way for their community. Unfortunately, when they are distributed through other grant programs, they don’t get evenly distributed. The Foxborough Town Manager has spent significant time discussing with our state reps how these Federal funds are being allocated and pushing for more local control.

Foxborough has multiple water main, road paving, and sidewalk repair projects ready to go when funding becomes available. We have also just entered into a contract with an engineering firm to perform an analysis on our water system including potential costs to add PFAS treatment. Foxborough will be

Foxborough has multiple water main, road paving, and sidewalk repair projects ready to go when funding becomes available. We have also just entered into a contract with an engineering firm to perform an analysis on our water system including potential costs to add PFAS treatment. Foxborough will be ready to spend any funding made available through the “Federal Infrastructure Bill.” ready to spend any funding made available through the “Federal Infrastructure Bill.”

What other Industry Groups or Associations do you belong to?

I have been a member of the American Public Works Association since 2009. I have served at the National level on the Young Professionals Committee as well and regionally on the New England Chapter Executive Committee. I am also a member of the NBM Highway Association and serve on the Board of Directors. n

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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.

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Incident Investigation Despite all of our best efforts to prevent an incident, they still occur. A thorough post-incident investigation is an effective way to prevent injuries and illnesses from recurring. The investigation must focus on finding the hazard(s) that existed that resulted in the incident and taking measures to correct or eliminate the hazard(s).

T

he investigation should start as soon as possible after the incident is reported. Getting to the scene of the incident quickly is critical. You want to see the incident scene before it gets disturbed, changed, or cleared up. Interviewing the victim(s) and witnesses before they forget what happened will help put together the complete picture of what occurred. An incident or near-miss cannot be investigated if it is not reported promptly. All incidents (including near misses) must be reported as soon as possible. Elements of an incident investigation include preparation, onsite investigation, and development of a report with recommendations for prevention.

Being prepared for an investigation before one occurs is essential. Any employees (management, workers, safety personnel, etc.) must be trained in investigation procedures. A process for notification for when an incident occurs must be in place so that all investigators can mobilize and arrive on-scene quickly. A system should be developed to ensure all information is gathered. Forms and checklists can be created ahead of time and used to train those investigating the incidents.

Once the investigators arrive on the scene, two main tasks must be the focus; collecting the evidence at the scene and conducting interviews. The first step in collecting the evidence at the scene is documentation. As you arrive and approach the scene, this task starts. Start taking pictures and videos as you approach the scene. Remember, you want to get the condition of the incident scene without disturbing it.

A good practice is to write notes referencing the picMAY, 2022

tures taken. These written notes might include measurements, sizes, and other things that might not be clear in the photos. If you are taking a video of the scene, these notes can be spoken aloud to capture it in the video. Some of the information you should be collecting include: • Equipment or machines involved (include manufacturer, model, and operator).

• Condition of the equipment.

• Tools used.

• Environmental conditions, including air temperature, noise, lighting, and anything else that may have contributed to the incident.

• Conditions of the surfaces.

• Physical obstacles. continued on page 49

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Safety Corner continued from page 47 All interviews should be conducted away from the scene of the incident. A conference room, a quiet area in a jobsite trailer, anywhere other than at the scene. You want to reduce any distractions. The purpose of the interviews is to get the facts and find out what happened according to the person's point of view in the discussion. The questions aimed at getting the facts are the who, what, when, where, and why questions. Keep the questions open-ended; phrase the question to avoid a simple yes or no answer.

Based on the information collected in the investigation, the root cause(s) of the incident will be determined, and recommendations for prevention will address the root cause(s). Whenever a recommendation is presented, it should address: •

Issues related to the specific incident.

•

Matters related to similar situations, conditions, and equipment.

•

Management system deficiencies.

•

Evaluation of the present controls and prevention actions.

•

Any controls and prevention actions that need to be implemented.

Upon completion of the report, copies should be made available to all of the incident investigation participants.

The report must be honest. It cannot hold back any recommendations or deficiencies. In conclusion to the incident investigation, any changes to policies and procedures will need to be made, and re-training on those changes will need to occur. n

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UCANE Contractor Member of the Month DeFelice Corporation 28 Silva Lane, Dracut, MA 01826 Tel: (978) 452-6967 • Fax: (978) 452-6803

12-Inch Sewer Relay - Nashua, NH

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MAY, 2022

DeFelice Corp. is Ready for the Infrastructure Bill Dracut-based first-generation family business is a great story of how to “Make it in America” Early Years As a youngster growing up in Somerville, Massachusetts, George DeFelice, was always attracted to the sounds and sights of heavy construction equipment and dump trucks. As a young middle-schooler he was chased off of multiple MBTA and Somerville DPW jobsites, not for loitering or vandalism, but for trying to blend in with and assist the crew by wearing his own hardhat and holding his own shovel that his grandfather had bought for him.

“I was fascinated with construction work and couldn’t stay away,” recalls George. “Some of the crews knew me and let me hang around a bit, but as soon as a supervisor came around, I got the boot.” By the time George was 14 he secured a paying job working summers with a local contractor, Paolini Corp. “I worked every summer through high school with Paolini,” says George.

“Angelo (Chickie) Paolini was great to me. Not only did he teach me how to lay pipe, he also taught me how to operate a backhoe.

I was also fortunate to work with Angelo’s young engineer named Bob Lewis (currently DPW Director in Framingham) who taught me how to run a transit and to do layout.”

After high school in 1983, DeFelice continued his “construction education” by working as a laborer and truck driver for several Boston area utility contractors. Still living in Somerville and working as many extra hours as his employers would give him, it didn’t take DeFelice long to save some money, and in 1985 he bought a 1978 Dynahoe 190 backhoe, and a used International 10-wheeler. In the Spring of 1986, at the age of 21, George established DeFelice Corporation and was ready to go off on his own.

The company’s first job was a small subcontract with George’s friend and mentor, Angelo Paolini. Growth was slow in the first few years as George proceeded cautiously into the marketplace doing local water service connections, sewer repairs, and small site projects. He only had a few employees, there were long hours, and George was wearing many – and sometimes all the company hats at the same time. As George remembers it, “I didn’t get much sleep for the first couple of years but I was just a continued on page 52

MAY, 2022

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DeFelice Corporation continued from page 00

(L-R) George DeFelice, James Potter, Stew McCormack, and Crystal Gaumont kid and didn’t need it. I loved owning my own construction company and I was determined to succeed.” It didn’t take long for local DPW Directors to notice the good work that DeFelice was getting done, and by the late 80s the company was fully engaged and bidding public work in the Boston area including Cambridge, Watertown, and Newton.

dition to pipe projects the company has added pumping stations, cast-in-place concrete culverts and structures, and marine work to their capabilities. Today the company employs 50 people and posts annual revenues exceeding $30 million.

Steady Growth

George is quick to credit his employees for the company’s success. “I have been blessed to have some of the best people in the business working with me,” says George. “I have smart people on the paperwork side of this business and I’ve got some of the best field crews in New England building these jobs every day.” George has high praise for his office manager/expediter Crystal Gaumont who has been with him for 11 years. Crystal coordinates the ever-growing mountain of recordkeeping necessary to run a construction business today. Between payroll records, insurance, MBE/WBE reporting, registrations, certifications, taxes, accounting, etc. the office hums every day and accuracy is all-important.

Another key part of the DeFelice team is Chief Estimator and Project Manager Stewart McCormack. A 30 year veteran of the road and utility business, Stew has been with the company for 13 years. “Stew is my righthand-man,” said George. “Like myself, he has worked his way up and has seen the business from every angle. We think alike on many things and it’s great for me to be able

In the 1990s DeFelice Corp. continued with steady and manageable growth. The company became well known as a serious competitor for water main projects in all areas north and west of Boston. They provided and installed their own bypass systems, while developing an extensive resume of large diameter water relays in urban streets. The company was also bidding and winning projects in New Hampshire and Maine. In 1995, George moved the company out of its small yard in Somerville and established a new and much larger (and current) company headquarters in Dracut, MA. By 2000, DeFelice Corp., with George DeFelice as President, sole owner, and excavator operator, had an extensive fleet of heavy equipment, 25 employees, and was doing $12 million per year in mostly water and sewer work.

During the past 20 years DeFelice has continued company growth by expanding his bidding area and by tackling a wider range of heavy construction work. In ad-

52

Keys to Success

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MAY, 2022

36-Inch Drain Relay - Cambridge, MA

Raw Water Intake at the Merrimack River Lawrence MA

to bounce ideas and problems off a pro like Stew.”

Stew was able to sit down with UCANE for a few minutes and talk about some of the more challenging projects that the company has recently completed.

1. Salem, NH – Broadway St. – Sewer, Water, and Bridge (Value - $11.5M) This project consisted of 10,000 ft. of 30-inch to 8-inch sewers with depths up to 25 ft. deep. An extremely high groundwater table required well point dewatering to facilitate installation. Much of the work was right up the middle of Broadway Street (Rte.20) requiring sewer bypassing and extensive traffic controls. The project also involved 11,000 ft. of water main replacements with temporary water bypass and 150 new service connections.

Another challenging piece of the project included removal of the existing bridge structure crossing under Broadway and the New Hampshire DOT Rail Trail. Heavy shoring was required, along with the relocation of extensive private and public utilities and bypassing of river flows. The old bridge structure was replaced with a 12foot span bottomless arch culvert and associated cast-inplace reinforced concrete structures.

2. Haverhill, MA – Flood Protection System Improvements (Value - $6.0M) This was a very challenging and unique project along the Merrimac River in Downtown Haverhill. It included raising the existing flood wall approximately 3 ft. for 2,300 ft. with limited access behind active buildings abutting the river. The major component was rehabilitation to the halfmile 24-foot diameter tunnel carrying the Little River under the City. Diverting the Little River so we could rehab the tunnel required construction of steel cofferdams, as well as a half mile of Porta-Dam system in combination

MAY, 2022

8-Inch Water Main Relay - Winthrop, MA

with a massive setup of pumps and bypass piping capable of handling 50 million gallons per day.

3. Lowell, MA – Raw Water Intake Piping (Value - $3M) This project was to increase the size and upgrade the raw water intake from the Merrimack River to the Lowell Water Treatment Plant. It required a complex and major addition to the plant’s valving and piping system to get the new 42-inch pipe to accommodate the existing intake appurtenances. A large diameter temporary bypass was required to keep the plant in operation while we performed shored excavations up to 20-feet-deep between the river and the WTP. continued on page 55

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DeFelice Corporation continued from page 53

Looking Ahead Like most infrastructure contractors today, DeFelice Corp. is excited about the increase in Federal funding about to be provided by the 2021 Infrastructure Bill. The increase in projects to be bid throughout all of the New England states over the next five years is already being monetized at most public works agencies and it is substantial.

As a member of UCANE’s Board of Directors, George has been closely following the development and the projected impacts that the long awaited Infrastructure Bill will have for New England and for his business. DeFelice Corp. is expecting to put on at least one more pipe crew this construction season and George admits to having

frequented an excavator “dealership or two” over the last few weeks. Another reason for George to be feeling confident about the industry and the future of his company is that the next generation of DeFelices are “coming of age.”

George’s oldest son Thomas has five years under his belt with the company and is becoming a top-notch equipment operator. His second son Eric is in his last year at Merrimac College where he is studying Civil Engineering. Daughter Julie is studying nursing at the University of Lowell. “I couldn’t be prouder of all my kids,” says George. “I’m living for the day when they all work with me in the business.” With a big smile George says, “I’m not sure where we can put a nurse, but I’m trying to convince Julie to get her CDL just in case she doesn’t like nursing.”

It certainly seems the future is bright for the DeFelice Corporation.

UCANE is proud to count DeFelice Corp. as a long-time and active member. Congratulations on your achievements and we wish the DeFelice family many years of continued success! n

Flood Control Project - Haverhill, MA

MAY, 2022

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The Effects of Covid on the Insurance Industry

With COVID-19 nearing its third year of being a part of our collective consciousness, it has continued to become evident that the virus is here to stay, and the changes it forced onto many industries are as well. Although insurance, as a whole, has largely been able to adapt to the necessity of remote working, it has not been exempt from overcoming challenges specific to the pandemic.

W

hile there is no definite end to COVID-19, the insurance industry is prepared to reflect on the previous two years to move forward with a better understanding of coverages and where the markets are heading.

Property and casualty insurance have significantly been impacted after the pandemic. “COVID-19 has affected three phases of property and casualty insurance, one being property coverage, the second being Worker’s Compensation coverage and three, the marketplace stance on COVID-19 moving forward,” shares Peter Jacavone, Senior VP, Assistant Sales Manager & Construction Practice Group Leader.

The insurance market before COVID-19, was already going through a difficult time, but now it’s worse.

“Carriers have added broader exclusions to their policies to show that COVID-19 is an excluded cause of loss moving forward. For example, most carriers ofprofitable clients are still looking for larger premium increase on good accounts. This is very similar to what is happening in the housing market with inflated pricing across the line,” shares Jacavone.

Due to an at-home workforce, cyber security risk has increased. “We see more demanding requirements from carriers to offer cyber security coverage.

One example would be multi-factor authentication for all company users. I believe that the insurance market will take some time to rebound moving forward,” explains Jacavone.

MAY, 2022

In addition, Property and Casualty have seen some of the biggest changes during COVID-19 in the commercial insurance space. With many businesses having to close or severely slow their revenue for a myriad of reasons, so has it increased the number of claims for coverages such as Business Interruption. Many carriers are denying claims under this clause, stating that there has been no direct physical damage to the business to interrupt their revenue and output.

In the General Liability space, specifically, this has translated to the addition of Communicable Disease Exclusions, which address the large influx of claims of both employees and third-party claims of contracting the virus on the insured’s property. Becontinued on page 59

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Insurance Perspective continued from page 57 cause of these exclusions, many insureds are forced to spend out of pocket to fight the allegations against them. This can be both a costly and ineffective use of the insured's revenue.

Large contingents of the workforce are still confined to working from home and in other less than ideal circumstances, having a risk control plan in place can assist in all sectors of insurance. “We have seen a great deal of employers unequipped to handle the challenges COVID-19 has brought to the forefront of the health and safety community,” explains Jonathan Cuneo, Loss Control Specialist. “One of the top trending issues we saw during the COVID-19 outbreak was companies challenging to navigate handling COVID-19 outbreaks in the workplace because of the lack of safety programs.

Having a strong and clear safety program allows companies to set their expectations for work practices and behaviors. Businesses need to specify employees how they intend to handle adverse situations, while making sure the message is clear. The health and safety of employees is at the forefront of their operations no matter the unexpected adversities,” shares Cuneo. The landscape is regularly changing across the entire insurance industry. n

MAY, 2022

Bioretention Soil? Who makes that?

Stabilized stonedust? Who makes that?

CU-Structural soil? Who makes that?

Green roof soil? Who makes that?

Reinforced soil? Who makes that?

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Gen Z Frenzy

Six-hundred fifty thousand. That’s the number of skilled trades workers the construction industry needs to hire just to keep up with the current backlog. In the grand scheme of the American workforce, it may not sound like a lot, but when you consider the fact that not even 20% of Gen Zers—the newest generation in the workforce—say they would even entertain the idea of a career in the trades, it suddenly becomes quite daunting. In an industry historically slow to adopt the latest technology, how can contractors entice the tech-savvy “zoomer” generation into careers in construction?

I

n an exclusive interview, Construction Executive talks to Casey Welch, CEO of End-to-End Workforce Development Company Tallo, who sheds light on what Gen Z wants in a career, how and where to reach the incoming workforce and what proactive steps construction companies can take today to secure the skilled workforce they’ll need to complete tomorrow’s projects.

What factors have led Gen Z to show a disinterest in pursuing a career in the construction industry?

Well, first off, this is not a new problem for employers in the construction industry. Talent shortage in this industry has been around for decades, along with the pressure to find younger talent to fill vacant opportunities left by more experienced workers. In a survey conducted earlier this year, we found that in a ranking of 22 industries, construction placed close to dead last, attracting the interest of only 16.7% of more than 29,000 Gen Z high-school and college respondents.

When we start to talk about why that is, there are really a number of factors, ranging from industry perMAY, 2022

ceptions to inadequate skills. Many students may feel they don’t meet the stereotypical characteristics for a career in construction, much less the criteria for the physically demanding skills required in the construction field.

What skills, traits or interests make Gen Z good candidates for careers in construction?

A lot of students today have little to no experience working with their hands. As schools shift their focus to training students on the latest and greatest tech, construction employers should look to how other industries dealing with similar shortages have changed their recruiting strategies to focus more on technology.

Take the trucking industry, for example. Tallo’s recent collaboration with the trucking industry focused on implementing gamification into recruiting applications by highlighting immersive technologies, such as virtual reality, that can give prospective candidates a better idea of the work they would need to perform. Gen Z isn’t known as the digital generation for continued on page 63

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Gen Z Frenzy continued from page 61 nothing. These are exactly the sorts of opportunities they’re seeking, and they, in turn, can offer contractors exactly the sort of skillset needed as they implement technological solutions to increase efficiency and productivity and make the most of a shrinking skilled-trades labor pool.

What are some ways employers in the construction industry can garner more Gen Z applicants?

In order to overcome industry challenges brought on by the talent shortage, construction employers really need to appeal to potential workers earlier in their lives—we’re talking before highBoston Area school graduation. In the aforementioned survey, it Locations

was also found that 70% of Gen Z decides on their future employer in high school or early college, while 74% indicate they would be more inclined to work for an employer if they connected with them prior to looking for a job.

In order to get Gen Z interested in construction, employers have to get to them early and get to them often. The earlier students can see the benefits of the career, the more inclined they’ll be to commit to it.

When and where should employers promote these positions?

Employers need to consider new ways to meet students where they spend the bulk of their time.

And while online platforms, such as social media, may be the first place that comes to mind, we found that students remain divided on 2 Dexter Street the idea of employers reaching Everett, MA 02149 Boston Area Boston Area out to them through their social Locations Locations media accounts, with 54% of re431 Second Street spondents saying they would Everett, MA 02149 2 Dexter Street 2 Dexter Street be comfortable with it and about

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Gen Z Frenzy continued from page 63 fered. What’s more, choosing an employer based on geographic location is back on the rise.

Another survey revealed that 42% of Gen Zers find location very important when considering a job, compared to 39% in mid-pandemic 2020 and 51% in 2019. For this next generation taking the workforce by storm, they’ve made it clear that making a personal connection to their jobs is key. And this desire for fulfillment has significantly increased for the majority of Gen Zers during the turbulence of the past year.

Sixty-nine percent of Gen Z respondents said it has become more important in the past year to find a job that is personally fulfilling, and the majority of Gen Zers say it’s important for them to work in a diverse and inclusive environment. Focusing on those efforts may help employers stand out to a Gen Z audience.

Survey respondents reported that women in leadership; diversity and inclusion training and discussions; and people of color holding leadership positions are the top three DEI initiatives they’re looking for in their future workplace.

How can contractors use technology when recruiting Gen Z? The most important thing to remember in any attempt for successful recruiting is to connect early

and connect often. How do you do that? Well, first you have to meet students and young professionals where they are: online.

Where early talent really leverages social media and technology is when checking out a prospective career field and determining whether or not it is a good fit. So, it’s in the best interest of contractors to use technology in the recruiting process to give early talent a look inside the industry in a way that highlights all its benefits and upsides.

What’s the number-one proactive step contractors can take today to fill the skilled-labor gap with individuals from this new generation of workers?

I may sound like a broken record here, but the number-one thing that contractors can do to help fill the skilled-labor gap among early talent is to reach out early. Construction companies should make it a priority to appeal to potential workers and get them skilled well before they graduate from high school.

Reprinted from Construction Executive, April 4, 2022, a publication of Associated Builders and Contractors. Copyright 2022. All rights reserved. Written

by Maggie Murphy.n

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Herb Brownette, B2W Software, Inc.

Associations Teaming Up to Help Contractors Improve Equipment Maintenance Results You can’t improve what you don’t measure. That is why companies in all industries embrace key performance indicators (KPIs), why the best-run contractors track metrics specific to heavy equipment fleet management to increase profitability, and why two construction associations have taken on a major initiative to help them do it more effectively.

T

he concept of tracking KPIs for fleet management to improve performance is easy to grasp. There are, however, a lot of challenges related to what to measure, how to measure it and how to interpret the results.

Many construction maintenance operations are using many different KPIs in a variety of ways. Common KPIs, like maintenance costs as a percentage of revenue or actual equipment utilization versus availability, for example, may be calculated differently by different companies.

A lack of construction industry benchmark data can also limit the usefulness of KPIs. While it is helpful for a company to measure its performance against its own historical data, it is far more valuable to know how the company is performing against industry benchmarks.

Cutting emergency maintenance hours from 30 percent to 20 percent of total maintenance hours could tell a team that it has made good progress. Finding out that other contractors routinely get that figure down to 10 percent indicates an opportunity for even greater improvement.

Two leading industry professional associations, the Association of Equipment Management Professionals (AEMP) and the Construction Financial Management Association (CFMA) recently launched a joint initiative to address these challenges. The goal of the project was to establish a reasonable number of standard equipment KPIs (approximately 30), specify standard methods for calculating each one, and survey the industry to develop benchmarks for each KPI. The AEMP and CFMA agreed to take on the joint project in early 2021 to accomplish these goals. They selected a task force team with members from both organizations, plus MAY, 2022

two recognized fleet management consultants. I have the honor of being part of this effort, and the team includes representatives from CFMA-member construction companies.

This team established criteria for selecting standard KPIs. Consideration was given to how commonly a KPI is used, ease of gathering the required calculation data and strong group consensus around including a specific KPI. The team recognized that many KPIs are a “blunt instrument,” meaning that their values are that of a starting point for further investigation and not an end result.

The list was narrowed down to 32 standard KPIs by June of 2021. The next step was to organize them into two broad categories: financial and operational. Financial KPIs (1-14) include those related to financial outcomes, cost, equipment utilization and safety. The operational side (15continued on page 68

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Technology in Construction continued from page 67

This initiative to identify and standardize maintenance KPIs will be a major contribution to the improvement of heavy equipment fleet management in the construction industry. In future articles, I will describe individual standard KPIs in detail, including why they were selected and the recommended standard methods calculation. n

32) includes metrics covering preventive maintenance, planning and scheduling, labor efficiency, equipment reliability, and parts inventory efficiency.

The team then divided into two groups, based on specific professional expertise of the individuals, to evaluate the KPIs in each category and determine a standard method of calculation. This was completed in February of 2022.

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MAY, 2022

$42.5 Million Coming to Cape for Water Resource Projects BARNSTABLE — The U.S. Department of Agriculture’s Natural Resources Conservation Service recently announced that it will invest $42.5 million in 21 projects that will restore and protect water quality on Cape Cod.

U

p to $29 million will be used for the first phase of the Herring River salt marsh restoration project in Wellfleet that aims to eventually restore 1,100 acres of degraded salt marsh. The first step in the project is to replace the existing culverts at the Chequessett Neck Road bridge, along with other structural elements. Adaptive management measures will be used to monitor and adjust increases in tidal flow gradually.

The 21 projects are part of the Cape Cod Water Resources Restoration Project.

The USDA agency will spend approximately $6,427,000 on 10 stormwater projects that will restore 1,115 acres; $4,030,500 on seven fish passage improvements that will restore 1,643 acres; and $31,738,500 on four salt marsh restoration projects that will restore 989 acres.

The funding will cover 75% of the construction costs while also providing money for design and project administration. The remaining 25% of the construction cost is the responsibility of the town and must come from a non-federal source. The costs are estimated and are subject to change.

Twelve Cape towns will benefit in what is the first of a five-year effort. The only towns without projects in the first year are Falmouth, Harwich and Yarmouth.

The funding is provided through the USDA

MAY, 2022

Water rushes underneath the Chequessett Neck Road bridge in Wellfleet. The bridge and tidal gates will be replaced as part of a 1,100-acre salt marsh rehabilitation project, funded largely by state and federal money. Mary Ann Bragg/Provincetown Banner

agency’s watershed and flood prevention operations program. The agency worked with the Cape Cod Conservation District, Barnstable County Commissioners, the state Executive Office of Energy and Environmental Affairs and all 15 Cape Cod towns to identify project sites.

The Cape Cod Water Resources Restoration Project was developed by the conservation district continued on page 70

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Spotlight on Cape Cod continued from page 69 and the USDA agency 20 years ago and approved

by Congress in 2006. The project initially identified 76 sites for remediation on Cape Cod, and 31 were completed.

Additional Projects Last year, the conservation district updated the Water Resources Restoration Project and requested funding for 98 identified projects, according to Mark Forest, chairman of the conservation district.

The list included 31 fish passage projects, 16 salt marsh projects and one stormwater management project.

The local approach will yield far-reaching benefits for the Cape, from herring to humans, U.S. Sen. Edward Markey, D-Massachusetts, said in a release. “This $42.5 million federal investment, including up to $29 million for the Herring River Restoration Project, will restore fish passages and ecosystems, improve water quality, promote coastal resiliency, and help mitigate climate change,” Markey wrote.

“I want to thank Senators Markey and Warren and Congressman Bill Keating for their enthusiastic support for our application to fund these projects, and recognize the incredible support from our partners at the NRCS,” Forest said.

Work on several of the sites is expected to begin in the fall of 2022.

Cape Cod National Seashore staff members have been working with the town of Wellfleet for years on the massive project.

“This is really a continuation of more than two decades worth of efforts to restore the Herring River,” Seashore Supt. Brian Carlstrom said. “The effort is rooted in the work of John Portnoy. It was picked up and carried forward by Don Palladino and the Friends of the Herring River.”

Carole Ridley, project coordinator for the Herring River salt marsh restoration project, called the news “tremendous.” The funding will go towards construction of all the water control elements necessary for a full tidal restoration of the Herring River, including the bridge and other structural elements, Ridley said.

Permits are currently being sought for the first phase of the project, which calls for the restoration of 540 acres of salt marsh. Additional follow-up permitting is needed to pursue the full restoration of the river, she said.

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The next step is for the town and the USDA agency to negotiate the grant agreement, according to Wellfleet Interim Town Manager Charlie Sumner. He expects that to happen before Sept. ember30. The town will have to commit to a nonfederal match of $8 million, which Sumner was confident would happen shortly.

Other Projects Include: The replacement of culverts on Truro Center Road will restore tidal flows to an upper marsh system and reduce flooding.

Stormwater treatment on Lieutenant Island Road, Wellfleet, for shellfish restoration.

The replacement of culverts to restore tidal flow to salt marsh and Scorton Creek in Sandwich.

The redesign of a fish passage at Upper Marstons Mills Pond and Middle Pond in Barnstable.

Stormwater treatment to address runoff from Follins Pond Road and landing in Dennis.

The elimination of outfall pipes and infiltration systems installed on Ryder and Gosnold Streets in Provincetown.

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In Charge of Too Much Yourself?

Ever noticed? There are 5,141 things that are out of your control and can go wrong on every construction project every day. For example: you can’t control who shows up for work, when equipment will break down, if plans are complete and accurate, when you’ll get paid, if you’ll encounter an unforeseen problem, whether material arrives when you need it, or the weather. On top of all this, you have a guaranteed price to perform work with no guarantees anything will work out as planned. This creates conflicts and challenges for contractors to overcome and handle on an ongoing basis.

In summary, what should be your primary focus, what should you handle, and what should you delegate to other team members?

C

onstruction business owners and managers struggle daily to handle emergencies, put out fires, and get it done no matter how hard they try. It is hard trying to manage multiple activities and responsibilities simultaneously. To manage and lead your company towards the results you want to achieve including profitable growth, building a strong management team, implementing sound systems, performing quality workmanship, maintaining a safe workplace environment, and building a winning team, you need four separate talents to be successful. The four different types of people to build a great business have specific abilities, strengths, and skills required to manage and lead your company. They include: Leader-Coach, Managing-Manager, AccountantAdministrator, and Talent-Player.

Without all four of these key positions filled with the right people with the right talent, your company

MAY, 2022

will stay stuck and never reach its’ full potential. And to make matters worse, many business owners think they are the best player available to perform all four functions required. Most business owners tend to be good leaders, poor managers, and weak accountants.

In fact, most people are strongest at one specific work talent area like estimating, sales, or project management. And when the owner tries to handle all four areas of responsibility, they have a tough time delegating, getting their company to grow, holding people accountable, retaining the right people, maintaining regular meeting schedules, enforcing company standards or systems, and maximizing their bottom-line.

Leader-Coach The Leader-Coach is the company’s visionary leader. They are usually the company founder or owncontinued on page 72

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In Charge continued from page 71 er and have a positive attitude which makes people want to follow their leadership and vision. As the head coach, they’re extremely passionate about the future and where the company is going. They’re dreamers and creators of the business vision, mission, and focus. They have lots of energy, are imaginative, a team builder as an inspiring motivational head coach, and get excited about where the company is headed and what it can become. They love new ideas, challenges, innovation, and change. The Leader-Coach tends to make quick decisions, is impatient, doesn’t like details or follow-up, and has trouble staying focused on organizational systems and procedures. They also have trouble making people accountable, tend to tolerate poor performers rather than demand results, and don’t like to fire or discipline employees.

Managing-Manager The Managing-Manager manages people, teams, departments, or operations effectively. They are very organized and systemized, team captains, detail orientated, hold regular meetings, enforce company standards and systems, hold people accountable, make sure required tasks are completed on-time and accurately, and like to take-charge, handle situations, and be in-control of every challenge they face.

They use checklists, scorecards, and agendas. They follow-up on details and tasks needed to be completed with their staff and make people responsible for their actions. They focus on hitting expected results, meeting schedules, hitting budgets, and regularly track progress. Their desk is organized, neat, and everything is in the right place. Managing-Managers also don’t have difficulty telling people the facts, disciplining others, delegating tasks, mentoring, letting employees know how they’re doing, and warning or firing poor performers.

Accountant-Administrator The Accountant-Administrator is responsible to manage two areas of the company: finance/accounting and administration. The accountant keeps track of financial matters, results, performance, accounting, money management, achievements, and progress. The administrator manages the admin staff and organizes systems, procedures, checklists, files, paperwork, human resources, insurance, technology, and corporate affairs. Both manage their teams to implement the tasks required to keep the company running efficiently and smoothly. They like to prepare and present reports to the leaders of the company.

They like detail, always sweat the small stuff, and are continued on page 73

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In Charge continued from page 72 the glue that keeps the machine running.

Talent-Player The Talent-Player is the worker who does the work. Each player has a particular area of talent, skill, and responsibility they’re assigned to handle. Most players are best at one single strong area of talent in which they excel, are gifted, or trained in. Talented players can be good workers in sales, estimating, project management, field supervision, safety, equipment, production, customer relations, quality control, craft trades, accounting, technology, or many other specific work areas of responsibility. Workers fail when they stray from their area of talent and handle tasks not within their strengths, gifts, or talents. For example, estimators are not usually good at sales, general superintendents are not usually good at numbers or managing job costs, bookkeepers are not usually good as project administrators or office managers, and business owners are not usually good at managing people or details.

You Can’t Play Every Position and Win! In football, there are specific coaching and playing positions required to build a winning team. You

MAY, 2022

wouldn’t put the safety in as the center or the quarterback as a kicker. You also wouldn’t have the head coach order supplies or manage the travel and equipment requirements. Everyone has specific gifts and talents they’re born with. Each player should do what they do best and not be overloaded with responsibilities they aren’t built for if you want to win the game.

Growing businesses struggle when the owner continually tries to wear every hat required to lead and manage their business. Sometimes owner’s think they’re the best at every type of talent and skill required to run the entire company – pricing, ordering, negotiating, selling, contracting, supervising, scheduling, determining who goes where every day, approving invoices, hiring, managing equipment, setting salaries, or which systems should be followed or not. When one thinks they’re good at everything, they often don’t let go of decisions, do too many tasks themselves, and delay hiring the right players to make the company better.

When your personal talent is visionary leadership, you’re likely the best salesperson at your company, but you’re not the right person to manage or supervise people or projects. Stubborn leaders try to manage and hold people accountable to no avail, which escalates the people problems. The results? continued on page 74

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In Charge continued from page 73 As things continue to get worse, you take on too much yourself and get out of control, results slip below expectations, and your best people leave for better opportunities. All because you didn’t look in the mirror and realize you shouldn’t be in charge of managing people, processes, procedures, projects, or systems.

What Positions Must You Fill?

What should you do next? When construction business owners attempt to handle areas they’re not talented in, they fail. If your personal talents and gifts are in cost estimating and your weaknesses include managing people and making them accountable for results, you’ll have to find a responsible manager who is better than you at handling the people and project parts of your company. Most owners need to hire an accountable Managing-Manager responsible for operations, project management, field supervision, people, and getting projects built on-time and on-budget. Focus your talent on what you do best: be the visionary Leader-Coach, win more profitable work, and find profitable customers.

your company, look at the areas that need the most attention to achieve excellence. Determine what you need to fix, which organizational chart gaps and positions of responsibility you need to fill or upgrade. Identify what area you’re best suited to lead and manage yourself. Let go of the areas you aren’t talented in or don’t want to handle yourself. And then replace yourself with great people for those activities you need to let go of to allow your business to grow and prosper.

Bill Gates was the visionary leader of Microsoft and Steve Balmer was the operations manager responsible to get the work done. This partnership worked. My recommendation to most struggling construction company owners is to hire strong managers who compliment your weakest areas to help them improve their business. I know you think you can’t afford it. That’s because you can’t make enough money with you doing work you shouldn’t be doing! With good people around you, your business will make more money. Without the right people in the right positions, you’ll continue to struggle and never make the money you should.

Draft Your Perfect Organization Chart!

As you design your company to grow profitably, continued on page 75

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In Charge continued from page 74 look objectively at how you run your business. List out who’s currently accountable and responsible for every area of your company. I’ll bet you’re responsible for most of the areas on your organizational chart. As your business grows, you can’t reasonably fill all these positions yourself if you want to build a great business. Decide what you need now and who’s best suited to take over your areas of responsibility going forward and in the future. If you don’t have a person currently ready or qualified to accept more responsibility, leave that future area blank and make it your next hire. Your goal is to design the perfect organizational chart and a game plan, which will allow your company to grow. This exercise will help you map out and identify your future management team needs.

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.

Now for the hard part. Should you start working on one of your weak areas? Or start looking for a management team member to accept responsibility for making your company better? Your first tendency is to work harder and take on more work yourself. This is a natural reaction for entrepreneurs who are used to and want to control everything, while not spending any of their hard-earned cash. Are you willing to take bold steps to promote or hire key managers to fill your organizational gaps before you can afford to?

The time is never right. But unless you’re willing to invest in your future, you won’t make big plays and win the games with the right players. Fill those key positions and put people in charge of winning and getting results. This allows you to concentrate on areas where you’re best suited and can make the biggest difference in your company’s success. n

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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. .............................................................30 Advantage Drug Testing........................................................26 Badger Daylighting................................................................44 Benevento Companies..........................................................37 Boro Sand & Stone Corp.......................................................60 Brennan Consulting...............................................................62 Dennis K. Burke, Inc................................................................9 C&S Insurance Agency............................................................2 Chadwick-BaRoss..................................................................59 Concrete Systems, Inc...........................................................48 Core & Main.............................................................................4 Cumberland Quarry Corp......................................................73 Dagle Electrical Construction Corp.........................................8 Darmody, Merlino & Co., LLP................................................39 Dedham Recycled Gravel......................................................23 DeSanctis Insurance Agency, Inc. ........................................60 Dig Safe System, Inc.............................................................56 Jack Doheny Company..........................................................64 The Driscoll Agency...............................................................68 The Driscoll Co. LLC..............................................................43 Eastern States Insurance Agency, Inc.................................. 11 Eastpoint Lasers, LLC...........................................................29 T. L. Edwards, Inc..................................................................75 Ferguson Waterworks............................................................19 Genalco, Inc...........................................................................68 Gorilla Hydraulic Breakers.....................................................60 L. Guerini Group, Inc..............................................................70 Henniker Directional Drilling, LLC.........................................66 Hinckley Allen LLP.................................................................14 John Hoadley & Sons, Inc.....................................................56 Hydrograss Technologies Inc................................................15 Ideal Concrete Block..............................................................24 Industrial Safety & Rescue....................................................58 JESCO...................................................................................25 P. J. Keating Company...........................................................18 P. A. 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Ins. Back Cover Northwestern Mutual..............................................................25 Ocean State Oil......................................................................72 Palmer Paving Corp...............................................................35 Pawtucket Hot Mix Asphalt....................................................54 E. H. Perkins Construction Co., Inc.......................................76 Podgurski Corp......................................................................75 E. J. Prescott, Inc................................................Ins. Front Cvr. Putnam Pipe........................................................................... 74 Rain For Rent-New England..................................................28 Read Custom Soils................................................................59 Ritchie Bros. Auctioneers......................................................22 Scituate Concrete Products Corp..........................................38 Scrap-It, Inc............................................................................63 Shea Concrete Products, Inc. ...............................................34 SITECH New England............................................................20 Starkweather & Shepley Ins. Brokerage, Inc........................36 Taylor Oil Company...............................................................62 Tenna.....................................................................................54 Tonry Insurance Group, Inc...................................................58 United Concrete Products.....................................................45 United Construction & Forestry, LLC.......................................1 United Rentals Fluid Solutions..............................................49 Webster Printing & Packaging...............................................56 C. N. Wood Co., Inc. .............................................................46 Woodco Machinery, Inc...........................................................6

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