View
215
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Â
Citation preview
1June 2014
STA Announces Officers And Directors For 2014-2015 Term
SUBCONTRACTORS NEWSBringing New York’s Union Subcontractors Together to Build a Stronger Construction Industry
June 2014IN THIS ISSUE
2 President’s Message
3 STA Announces Officers and Directors for 2014-2015 Term
4 STA Holds 2014 Golf Outing
12 De Blasio Administration’s Construction Team Begins To Take ShapeBy Hank Kita, Executive Director
16 Don’t Miss This Tax Deduction!By Anthony J. Campolo, CPA, Partner, CohnReznick Construction Industry Practice
18 The Prompt Payment Act –By Henry L. Goldberg, Managing Partner, GoldBerg & Connolly and STA Legal Counsel
22 STA Member Spotlight Arcadia Electrical Company
24 Grassi & Co. Releases Their 2014 Construction Industry Survey
27 What Public Relations Can Do For Your BusinessBy Sarah S. Berman, President, The Berman Group, Inc.
If you would like to receive a hardcopy of Subcontractors News in the mail
each month, please email your full mailing address to [email protected]
with the subject line “Subcontractors News Hardcopy Request”
Email Feedback to the STA Office
P R E S I D E N T ’ S M E S S AG E
STA Subcontractors News2
On behalf of the Subcontractors Trade Association, I’d like to wish all of our members
a prosperous and enjoyable summer season. The STA kicked off the summer with our
Annual Golf Outing, held Monday, June 23 at the Cherry Valley Club in Garden City,
NY. Members spent the day outdoors, socializing and enjoying the beautiful weather.
Thank you to everyone who participated in another successful golf outing.
The 2014-2015 STA Board of Directors and Officers were elected during the Dinner
portion of the Annual Golf Outing. Congratulations to all of the newly elected Board
Members and Officers and best wishes for a productive year ahead.
As the outgoing STA President, I would like to thank all of our members for your
continued support and dedication to the STA and to the New York City union
construction industry. I am excited to welcome incoming STA President, Bob Ansbro.
It has been a pleasure serving as President for the past two years;
I look forward to my continued involvement in the STA.
Thank you for your continued support.
Sincerely,
Jerry Liss
President
3
STA Announces Officers and Directors for 2014-2015 Term
June 2014 3
JOHN DIERKS | Dierks Heating Company, Inc.ANDREW DRAZIC | ATJ ElectricalBRENT FLEISHER | Environet SystemsSTEPHEN GIANOTTI | Arcadia Electrical Co., Inc.JOHN VILLAFANE | Eldor Electric, LLC
TO FILL AN UNEXPIRED TERM (July 1, 2014 - June 30, 2015)SANDRA MILAD GIBSON | Milad Contracting Corporation
ROBERT J. ANSBRO (New York Roofing Company)
President
ROBERT WEISS (A.J. McNulty & Co., Inc.)
1st Vice President
PETER CAFIERO (Island Painting)
2nd Vice President
JOHN A. FINAMORE (Jordan Panel Systems)
Treasurer
JOSEPH LEO (Atlantic Contracting
& Specialties, LLC)
Secretary
OFFICERS (July 1, 2014 - June 30, 2015)
The STA has selected its slate of officers and new Board of Directors for the 2014-2015 terms. The Officers and Board of Directors were elected at the dinner portion of the annual golf outing on Monday, June 23 at the Cherry Valley Golf Club in Garden City, New York.
The Officers were elected for a period of one (1) year starting July 1, 2014 to June 30, 2015, and the Directors for a period of three (3) years from July 1, 2014 to June 30, 2017.
BY HANK KITA, EXECUTIVE DIRECTOR, SUBCONTRACTORS TRADE ASSOCIATION
BOARD OF DIRECTORS (July 1, 2014 - June 30, 2015)
4 STA Subcontractors News
333 Westchester Avenue | White Plains, NY 10604 | 333 Earle Ovington Blvd. | Uniondale, NY 11553
www.usi.biz | 800.447.3586
CONSTRUCTION INSURANCE
LEADERSSURETY BONDING
EXPERTS
ADVERTISEMENT
Email Feedback to the STA Office
On Monday, June 23, the STA held its Annual Golf Outing at the Cherry Valley Country Club in Garden City, New York. Over 88 golfers were on hand to play in the beautiful weather and engage in friendly competition.
The team with the lowest gross of the day was comprised of Henry Goldberg (Goldberg & Connolly Attorneys at Law), Don Cervantes (H.O. Pen), Mike Rostanzo (American Bridge Company) and Jake Bidosky (American Bridge Company). The Vanguard Coverage Corporation team members Bob O’Kane, Bob Kempner, Justin Casey and Carl Oliveri had the lowest net of the day.
Closest to the pin was Steve Richardson of National Interiors; Longest Drive for the Men was Jerry Liss of A. Liss & Co., Inc.; Longest Drive for the Women was Christine Donaldson Boccia of J.D. Traditional Industries; and Closest to the Line was Kevin Abrishami of Independent Temperature Controls.
Thank you to all participants and sponsors of the 2014 STA Golf Outing for their continued support of the Subcontractors Trade Association.
BY SAMANTHA SWEENEY, SUBCONTRACTORS TRADE ASSOCIATION
STA Holds 2014 Golf Outing
5June 2014
Email Feedback to the STA Office
12 STA Subcontractors News12
As the New York City construction market continues its slow improvement during the first half of 2014, the de Blasio administration’s team which will regulate and greatly impact the subcontractor members of the STA has finally begun to take shape.
Early apprehension over who might be the major players in City Hall affecting construction has been replaced with cautious optimism over many of Mayor de Blasio’s construction appointments. For the most part, the Mayor’s construction team is comprised of many familiar faces with whom the construction industry has worked with over the years. What is not yet clear however, is the approach and policies which the de Blasio administration will attempt to implement in policing and regulating the industry.
Among the familiar faces now in City Hall with the greatest impact on the New York City construction industry are: Department of Environmental Protection Commissioner Emily Lloyd, Senior Advisor for Recovery, Resiliency and Infrastructure Bill Goldstein, Director of the Office of Housing Recovery Amy Peterson, and the Director of the Mayor’s Office of Contract Services Lisette Camillo. In addition, Lorraine Grillo was reappointed by Mayor de Blasio as President of the New York City School Construction Authority.
Emily Lloyd is reprising her role as DEP Commissioner, a position she previously held in the Bloomberg Administration. Many in the construction industry will remember Amy Peterson in her positions at the Lower Manhattan Development Corporation and more recently as the Executive Director for the
non-profit group Nontraditional Employment for Women. Lisette Camillo played a major role in the implementation of the Bloomberg Administration’s MWBE program as Legal Counsel at the Mayor’s Office of Construction Services. Perhaps the most important construction appointment to date by Mayor de Blasio is that of Senior Advisor Bill Goldstein. Goldstein has held positions in private construction, served as the head of the MTA’s Capital Programs and was a past President of the New York City School Construction Authority. He commands the respect of many in our industry because of his knowledge of the construction process and approachability as a public official.
Some not so familiar faces appointed to key positions in City Hall that will have a major impact on construction include: Department of Transportation Commissioner Polly Trottenberg, Department of Design and Construction Commissioner Dr. Feniosky Pena-Mora, and Fire Commissioner Daniel Nigro. It will take some time for these new appointees to become acclimated and assert their influence on construction in New York City.
One very important position, with perhaps the most impact on construction, that remains without a permanent appointment, is that of the Commissioner of the Department of Buildings. With a new Building Code set to be implemented later this year, this position will be critical to subcontractors. Serving as Acting Commissioner since the resignation of Robert LiMandri is Thomas Fariello. According to published reports, it appears that the position will be soon filled, possibly by Maggie Kwan who is currently with Tishman Construction. It is anticipated that
De Blasio Administration’s Construction Team Begins To Take ShapeBY HANK KITA, EXECUTIVE DIRECTOR SUBCONTRACTORS TRADE ASSOCIATION
continued on page 14
13June 2014
ADVERTISEMENT
313 West Old Country Road • Hicksville, NY 11801 | T: 516.937.9500 | www.castellanokorenberg.com
Castellano, Korenberg & Co.
Certified Public Accountants
G U I D A N C E Y O U C A N C O U N T O N
BUILD WITH
CONFIDENCE
Email Feedback to the STA Office
14 STA Subcontractors News14
the Mayor will move to fill the position of Buildings Commissioner by early to mid July.
With most of the de Blasio administration’s construction team now in place, the STA will begin the process of reestablishing relationships where necessary across those city departments and agencies that most impact our members. Look for more information from the STA on the new construction initiatives that might be implemented by the administration and additional updates on other new appointments of importance to STA members.
continued from page 12
15June 2014
ADVERTISEMENT
The G&C Building66 North Village AvenueRockville Centre | New York 11570Phone 516.764.2800 | Fax 516.764.2827www.goldbergconnolly.com
ContactHenry L. GoldbergManaging [email protected]
Legal Counsel to the STA
New York’s “Go-To” Construction Law Firm
g&c_sta_half_page_horiz_ad.indd 1 12/3/10 4:16 PM
Email Feedback to the STA Office
16
Did you know…
One of the most underutilized tax deductions that many contractors either overlook or are not even aware exists is the Energy Efficiency Commercial Building Deduction (Section 179D).
Have you ever heard of it? Have you enjoyed the benefit of this tax deduction?
If you are an electrical, mechanical, roofing, foundation, mason, or controls contractor and you are the entity who was primarily responsible for creating the technical specifications for installation of the energy efficient commercial building property for an energy efficient government owned building (which includes public schools and state universities), you may qualify for this deduction and it could be substantial.
In fact, one of our construction clients recently qualified for this tax deduction which amounted to nearly $200,000 for the qualified work performed on an energy efficient government owned building.
The way this deduction works is simple. Congress, through this statute, has provided an incentive for commercial building owners to exceed energy efficiency industry standards for new construction and renovations of commercial buildings by making available an accelerated tax deduction provided these industry standards are exceeded. The energy efficiency of the commercial building is measured in three areas:
1. The building envelope2. The HVAC system 3. The interior lighting
Since the government entity that owns the building cannot benefit from this deduction, upon request, the
government entity can allocate this tax deduction, to the entity that is primarily responsible for creating the technical specifications for installation of the energy efficient commercial building property provided certain criteria are met.
It is important to note that the respective government entity grants the assignment of this tax deduction so a formal request must be made and granted in order for this deduction to be allocated to you.
Sec. 179D, like many other provisions in the tax code, expired on December 31, 2013. However, this provision would still be available to you on your prior three years income tax returns provided you qualify in those years. In addition, Sec. 179D has been included in the 2 year Tax Extenders Bill which would make this provision available through 2015 and would grant tribal governments and non-profit entities the ability to allocate this deduction as well, but as of this writing this bill has not yet passed.
Therefore, if you are an electrical, mechanical, roofing, foundation, mason, or controls contractor and you performed this qualified work on an energy efficient government owned building this is a tax deduction that you should look into whether or not you can claim this tax deduction. The tax savings could be quite substantial, so don’t wait.
For additional Construction Tax Tips go to http://bit.ly/1mkIbZI[bit.ly]
Anthony J. Campolo, CPA is a partner in CohnReznick’s Construction Industry Practice. For questions or additional information on this topic, Anthony can be reached at 914-922-2126 or by email [email protected]/in/anthonyjcampolo[linkedin.com]
STA Subcontractors News16
Don’t Miss This Tax Deduction!
BY ANTHONY J. CAMPOLO, CPA, PARTNER, COHNREZNICK CONSTRUCTION INDUSTRY PRACTICE
17June 2014
ADVERTISEMENT
Great things get built when we put our heads together.
STRENGTH IN PARTNERSHIPGarden City | 516.873.2000
New York City | 212.239.2000
www.moritthock.com
Our fi rm knows the business needs of subcontractors. Our Construction Law Practice applies a unique, cost-effective and innovative approach to problem solving. Our experience in representing not only subcontractors, but also owners, contractors, construction managers and sureties, enables us to better serve you. Because we lack traditional separation by departments, you tap into the combined mind power of our entire fi rm: 50 experienced attorneys with diverse skills and insight, all coming together to deliver big picture solutions for your business.
Discover our combined strength in partnership with your business.
Lee J. Mendelson
William P. Laino
Gary Y. Wirth
Email Feedback to the STA Office
18
When drafting or negotiating contracts for private construction projects (at least for those in excess of $150,000), be mindful that New York’s Prompt Payment Act provides certain safeguards regarding construction contracts which are not generally recognized. In addition to the better-known payment protections we have previously addressed, these “subcontract content” protections are important to keep in mind. They should have a positive effect on your all-important subcontract negotiations.
“Choice of Law” and “Forum Selection” ClausesContractual provisions for New York private construction projects that require parties to be subject to the laws of any state other than New York are void and unenforceable in New York. The Prompt Payment Act provides that any and all disputes arising from a construction contract for a New York project must be resolved pursuant to New York law. Note, however, that this “choice of law” protection is not applicable to contracts for material supplies only, regardless of amount.
Similar to “choice of law” provisions, private construction contracts that require parties to engage in dispute resolution in any state other than New York are also void and unenforceable in New York. The Prompt Payment Act provides that any arbitration, litigation or other dispute resolution procedure (e.g., mediation) arising from the contract must take place in New York State. As with “choice of law” clauses, the only exception would be regarding a contract for material supplies only.
With respect to the aforementioned “supplies only” exception, it is well-settled that a “material supplier”
is a party to a contract with an owner, contractor or subcontractor that exclusively provides construction materials and/or equipment necessary to complete a construction project. For purposes of the Prompt Payment Act, a “subcontractor” provides, in contrast, labor and/or other services, and not solely materials.
In a recent New York court decision, a general contractor on a New York construction project attempted to enforce a subcontract’s “choice of law” and “forum selection” clauses, requiring disputes to be resolved in Missouri, with the application of Missouri law. The New York court struck down the “forum selection” and “choice of law” clauses as violative of Prompt Payment Act protections.
In this particular case, the New York subcontractor entered into a subcontract with a general contractor to fabricate and install steel on a New York-based project. The subcontract contained a “forum selection” clause requiring the parties to engage in any dispute resolution in Missouri. The subcontract also stated that it “shall be governed by the laws of the State of Missouri.” A dispute arose after the general contractor failed to pay the subcontractor and refused to let the subcontractor complete its work. Pursuant to the “forum selection” clause in the subcontract, the general contractor filed a demand for arbitration in Missouri.
The subcontractor filed a mechanic’s lien in New York against the general contractor and, subsequently, sued the general contractor for breach of contract and foreclosure of its mechanics lien. The subcontractor also requested an order of the court staying the arbitration in Missouri. The New York court held that
STA Subcontractors News18
The Prompt Payment Act –It’s Not Just About Payments
BY HENRY L. GOLDBERG, MANAGING PARTNER, GOLDBERG & CONNOLLY AND STA LEGAL COUNSEL
continued on page 20
19June 2014
ADVERTISEMENT
YOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSYOUR BUSINESSNEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMENEEDS A GAMECHANGERCHANGERCHANGERCHANGERCHANGERCHANGERCHANGERCHANGERCHANGERCHANGERINSIGHT IN CONSTRUCTION CAN CREATE IT.Turn to CohnReznick for proactive financial insight to improve profitability, fortify working capital and strengthen banking and surety programs. Find out what CohnReznick thinks at CohnReznick.com/construction. Forward Thinking Creates Results.
CohnReznick is an independent member of Nexia International
cohnreznick.com/construction
Joe Torre2014 National Baseball Hall of Fame Electee
Email Feedback to the STA Office
pursuant to the Prompt Payment Act, the Missouri “choice of law” and “forum selection” clauses were void and unenforceable in New York and must be stricken from the subcontract. Moreover, the court held that the “supplier-only” exception to the Prompt Payment Act, did not apply because the subcontractor was not, in fact, exclusively a “material supplier,” since it unquestionably also performed labor on the project. Finally, the court further held that New York law will apply to the controversy.
Interestingly, while the New York court struck down the “choice of law” and “forum selection” clauses of the subcontract, it chose not to void the entire contract, so as not to override the apparent intent of the parties with regard to the resolution of controversies pursuant to arbitration. As such, the New York court held that the arbitration should proceed, but must: (1) occur in New York; and (2) utilize New York law.
Pay Requisition ClausesIn another “subcontract-content” safeguard in the Prompt Payment Act, the Act also prohibits parties from altering its statutorily-prescribed minimum periods for the payment of invoices regarding private commercial construction projects.
As discussed in a previously published Goldberg & Connolly Legal Log, entitled “THE NEW YORK PROMPT PAYMENT ACT: Designed to Get You Paid on Your Private Projects – Use It!” (April 2013), an owner is required to tender payment for a pay requisition (including final payment) within thirty days of approving said pay requisition. In turn, within seven days of receiving a payment, a contractor and/or subcontractor must subsequently tender payment to its subcontractors of the proportionate amount paid by the owner for the subcontractor’s work. The Prompt Payment Act will be enforced, and any subcontract provision that attempts to modify the periods to pay invoices or requisitions shall be struck down by New York courts.
G&C CommentaryThis is good news for New York subcontractors. The law will protect you, even if your construction subcontracts
have adverse “choice of law,” “forum selection clauses” or improper “payment cycle” provisions.
As you negotiate your subcontracts, be aware of statutorily prohibited clauses. The Prompt Payment Act should readily resolve these matters should they become sticking points during subcontract negotiations. It is preferable to avoid future disputes regarding these provisions before executing the subcontract. However, if these provisions are not removed, New York courts will follow the Prompt Payment Act and decline to enforce them.
As always, review your contracts thoroughly and protect your rights. Issues that may seem inconsequential during the “honeymoon,” when contracts are being negotiated, may loom very large later. Meticulous attention paid to construction subcontract language, increasingly today, can be a “save the company” discipline. Whatever time and expertise you devote to contract negotiations is well worth the effort. The Prompt Payment Act can help you in that effort.
Mr. Goldberg may be reached by email at [email protected] or by telephone at (516) 764-2800.
Jeffrey I. Scott, an associate with Goldberg & Connolly, assisted with the preparation of this article.
© Goldberg & Connolly 2014
This article has been prepared for informational purposes only. It is not a substitute for legal advice addressed to particular circumstances. You should not take or refrain from taking any legal action based upon the information contained herein without first seeking professional, individualized counsel based upon your own circumstances. The hiring of a lawyer is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you written information about our qualifications and experience.
www.goldbergconnolly.com
continued from page 18
STA Subcontractors News20
21June 2014
STA Member Spotlight: ATJ Electrical
ADVERTISEMENT
Putting The Pieces Of
Building And Business
Together
Beyond Protection. Partnership.
When it comes to creating new contacts andconnections, we create the perfect fit. Fromenhancing market relationships and creatingalternative risk financing to forming jointventures and acquisition opportunities, ourteam of experts can put it all together for you.
David W. MarinoRegional Executive Vice President
[email protected] | www.aon.com
Email Feedback to the STA Office
22
One of the STA’s recently elected Board Members, Stephen Gianotti, is an electrical veteran in the New York City construction industry. His company, signatory to Local Union No. 3 I.B.E.W., Arcadia Electrical, was founded in 1988. Though initially set up as a control wiring company, Arcadia is now a full-service electrical company specializing in risers, theatrical lighting, and fire alarm and life safety systems. They employ over 75 workers with jobs in all five boroughs of New York City.
Arcadia has worked on large projects such as last summer’s renovations of the New York Public Theatre with specialty design lighting, in collaboration with the NYC Department of Design and Construction. Arcadia is looking forward to working on the Court Officers Training Academy beginning this summer.
Gianotti started his leadership within the STA as a member of the Executive Advisory Board before being elected to the Board of Directors at the Annual Meeting on June 23, 2014.
The STA has been a valuable experience for Gianotti. It has opened his eyes to the inner workings of the industry.
“Working with the STA over the years has given me greater insight into working with public agencies, how they work and function, what’s involved with dealing with them, as well as with the general contractors,” said Gianotti. “It opened up a different way of thinking about how you do business with these people and what it is that makes it all work.”
Aside from being a member of the STA Board of Directors, Gianotti is Vice President of the New York Electrical Contractors Association (NYECA) and Treasurer of the National Electrical Contractors Association (NECA), a trustee for Local Union No. 3 I.B.E.W. Pension Fund as well as a trustee on the Joint Industry Board of the Electrical Industry.
To contact Stephen Gianotti at Arcadia Electrical, you can email him at [email protected] or via telephone to 718-418-0106.
Arcadia Electrical Company1005 Wyckoff AvenueRidgewood, NY [email protected]
STA Subcontractors News22
STA Member SpotlightArcadia Electrical Company
BY SAMANTHA SWEENEY, SUBCONTRACTORS TRADE ASSOCIATION
23June 2014
ADVERTISEMENT
2120 Atlantic Avenue, Brooklyn, NY 11233 | Tel (718) 403-0100 | Fax (718) 596-5085 | www.parkavebuilding.com
Your Vision – Overhead
YOUR FULL SERVICE USG CEILING SYSTEMS DISTRIBUTOR
YOUR CERTIFIED MBE SUPPLIER
Specialty Solutions Integrated Ceiling Systems
Acoustical Suspension Systems
Acoustical Panels
Drywall Suspension Systems
Email Feedback to the STA Office
24
Grassi & Co.’s Construction Practice recently launched the results of its 2014 Construction Industry Market Outlook Survey at the firm’s Construction Industry Symposium, which was held at the Hudson Hotel on Wednesday, May 21, 2014. The 2014 Construction Industry Market Outlook Survey, which featured 61 questions in 12 categories, was completed by more than 100 C-level executives at leading construction companies in the New York Metro area. Designed as a valuable resource that identifies best practices, emerging trends and industry benchmarks, the survey’s results were broken down by companies with revenue greater than $100 million and companies with revenue of $100 million or less.
Key Findings from the Survey
• 77% of the executives surveyed reported that their revenues are expected to be higher in 2014 than they were in 2013.
• 53% of industry executives surveyed expect their 2014 gross margin percentage will remain the same or decrease from 2013.
• Well over half of the executives believe that the overall construction market will be better in 2014 than it was in 2013.
• 91% of the respondents reported that none of the work they perform is international.
• 24% of union contractors are considering migrating towards non-union work.
• Expansion of business offerings and expansion of geographical reach were identified by a number of executives to be primary business strategies that will be a focus in 2014.
The survey was sponsored by the Building Trades Employers’ Association (BTEA), Queens & Bronx Building Association (QBBA) and ENR New York. To review the complete survey results report, including the industry trends identified, please contact [email protected].
Grassi & Co.’s 2014 Construction Industry Symposium
The Grassi & Co. Construction Industry Symposium, an industry-specific event for owners and senior executives within the New York metropolitan region,
STA Subcontractors News24
Grassi & Co. Releases Their 2014 Construction Industry Survey
Email Feedback to the STA Office
STA Subcontractors News25
provided industry executives with the opportunity to connect with their peers and other industry thought leaders to share their knowledge and discuss current market dynamics.
The event kicked off with a dynamic panel discussion on the results of Grassi & Co.’s 2014 Construction Industry Market Outlook Survey. Lou Coletti, President & CEO of the Building Trades Employers’ Association (BTEA) moderated an esteemed panel of industry executives, including Milo E. Riverso, Ph.D., P.E., CCM, President & CEO, STV; Mark Varian, President, John Gallin & Sons Inc.; Jeff Capazzi, Owner, The Jobin Organization, Inc. and Deborah Bradley, President, Deborah Bradley Construction & Management, Inc.
Left to Right: (Panelist) Mark Varian, John Gallin & Son; (Host) Lou Grassi, Grassi & Co.; (Panelist) Deborah Bradley, Deborah Bradley Construction & Management, Inc.; (Panelist) Jeff Capazzi, The Jobin Organization; (Panelist) Milo Riverso, STV Group; (Moderator) Louis Coletti, Building Trades Employers’ Association; (Host) Carl Oliveri, Grassi & Co.
The panelists discussed a number of highlights which included:
Financing. 77% of the executives stated that their current cash flow was their primary source for financing their businesses. Although many firms do hold a line of credit, cash flow management has become a daily activity for most firms. Jeff Capazzi observed that in the past several years “there has been a slowdown in owner payments, which has exerted additional pressures for companies to maintain adequate cash flow for operations.”Union vs. Non-union. Panelists noted that the market has changed and that as of late, it has been a “don’t
ask, don’t tell” scenario. Milo Riverso commented “for the unions to stay competitive in today’s atmosphere, they are going to have to line up all their work hours, all their holidays and all their rules. It is more about productivity than it is the wages…the real value is in the union coming to the table, forgetting about the PLAs, negotiating contracts, and getting the productivity up.”
Competition in the Market. According to Mark Varian, competition is a constantly changing thing in the New York market. Mark stated that, there are always new names on bids and that “it seems like every time a construction company goes out of business, 4 more spin off, so we are constantly having to learn what our competition is and then figure out how to beat them.” Increased competition does not necessarily mean that a company needs to change their pricing strategy in order to effectively compete. “The client is still interested in the numbers, but they are also concerned about scheduling and the quality of work,” stated Mark. Therefore, companies need to take a holistic approach during the bidding process to exhibit how they differ from their competitors and can address all of their clients’ concerns. Deborah Bradley added that, “it is still brutal out there. Contractors flooded the market and the public sector during the recession and there were 20-30 bidders on a job, but you are still seeing that today, which has resulted in adjusting our business and bidding strategy.”
D/M/WBE Compliance. D/M/WBE compliance continues to be a challenge for many companies. The General Contractors surveyed indicated that they have challenges with determining which D/M/WBEs are available to perform the types of contracts needed and the D/M/WBEs surveyed indicated that they have challenges with the “visibility” of projects which require compliance. Deborah Bradley discussed how it is important to find the right fit for the D/M/WBEs and the right fit for the Construction Managers. However, it is difficult for smaller companies to provide accurate estimates on projects given their lack of estimators and/or the lack of information that is provided on the project. “There has to be a lot more communication, first thing that is needed is to really develop relationships between the primes and the M/WBEs…there has to be some teaming
Email Feedback to the STA Office
26 STA Subcontractors News26
going on,” stated Deborah. Milo Riverso added, “it is difficult to find good M/WBEs. One bad sub can really hurt the job. The goals are getting higher and higher, and harder to fill…and they are enforcing this and putting tremendous law enforcement into ensuring compliance.”
Steven Schertz, Henegan Construction Co., reads the results from the
Construction Industry Market Outlook Survey.
The symposium continued with an entertaining keynote address by Super Bowl Champion Howard Cross, who discussed the skills and knowledge he learned in professional sports that have helped him succeed in business.
Keynote Speaker Howard Cross, Cresa New York, New York Giants
The night concluded with a cocktail reception on the rooftop penthouse of the Hudson Hotel.
27
What Public Relations Can Do For Your Business
BY SARAH S. BERMAN, PRESIDENT, THE BERMAN GROUP, INC.
27June 2014
Email Feedback to the STA Office
Outlining a strong public relations strategy is critical when starting a business and no less important for maintaining growth. It is an economical way to reach a target audience and to create demand for a company’s products and services. Moreover, it can strengthen a firm’s image and create an advantage over competitors operating without a public relations plan. A well-run public relations program can have a significant impact on continued success and it is essential to customize a strategy to align with each individual company’s business goals.
Identifying Your AudienceAn effective public relations strategy should always be geared to a targeted audience. While advertising to the masses may provide a greater yield of clients, the amount of resources used to distribute the message may end up being much more costly than the ultimate gains. Identifying and using industry media outlets frequented by your audience will allow you to connect with your target market and effectively spread new information about your products and services.
Achieving the Right ResultsIt is essential to deliver a message that is clear, concise and catchy. A muddled message is forgettable, at best, and has potential to leave your audience confused and frustrated. When creating a public relations campaign message, evaluate whether it relates to your business goals and whether it is relatable for your target audience. If you’re selling a product or service, communicate exact details of how this can help your target market and why they need it. For example, if you are announcing a new product, provide a clear description of the product, the benefits of use and differentiation
from competing products. Many effective strategies connect their messages with current trends. Determining what the public currently values and associating your company with those values has greater potential to generate interest.
Taking Your Message to MarketTo solidify your message, it is essential to take part in industry events and seminars. Speaking at industry functions can help establish your company as a formidable provider of specialized services. For established companies, it can disseminate company news such new products, divisions and services. Reporters cover important industry events, so if you are a part of the action, you significantly increase your chances of being quoted in a publication. Frequently, press members will seek out event speakers for interviews before or after the event. It’s a great way to position yourself as an expert in your field and attract attention from potential customers. Even just attending and networking at the event can build valuable business and media relationships.
Incorporating Social MediaSocial media is quickly becoming an indispensible resource for all businesses. Services like Facebook, Twitter and LinkedIn allow companies to market themselves to a wide audience at minimal cost and provide an extended network of professional contacts for instant connections. Social media helps users discover new opportunities, ideas and information based on personal and professional backgrounds, creating a potential goldmine for marketing possibilities. Integrating social media into your public relations strategy is essential to maintaining a strong, well-rounded presence and reaching your audience using a variety of methods.
28 STA Subcontractors News
ADVERTISEMENT
Construction, Real Estate & Labor Law • Public/Private Bids and Contracts • Claims • Surety Law • Mechanic’s Liens
• Environmental Law • Commercial Litigation • Real Estate Development • Offering Plans • Labor Law • OSHA Violations • Arbitration • Mediation
Tri State Lien, Inc.
11 Martine Avenue, White Plains, New York 10606
Phone: (877) 543-6488 • Fax: (914) 686-4493 • www.tristatelien.com
NEW YORK • NEW JERSEY • CONNECTICUT
Providing lien filing andbond claim notices for construction projects
throughout the tri-state region
Goudy Old Style
LIEN, INC.
TRISTATE
C O L L E C T I O N S E R V I C E S
www.tristatelien.com
11 Martine Avenue, 15th Floor, White Plains, New York 10606 • Phone: (914) 428-2100 • Fax: (914) 428-2172 • www.wbgllp.com
Goudy Old Style
A T T O R N E Y S A T L A W
A T T O R N E Y S A T L A W
GREENBLATT, LLP
WELBY,BRADY &
W BG&
29June 2014
ADVERTISEMENT
Comprehensive Legal Services for the Construction and Real Estate Industries
• Construction Contracts & Claims• Litigation, Mediation & Arbitration• Private & Government Projects• Partnering, Joint Ventures & Closely
Held Corporation and Limited Liability Companies
• Commercial Real Estate
• Labor & Employment Disputes• Secured Creditor Transactions• Wills, Trusts & Estates• Business Succession Planning• Intellectual Property, Copyright & Trademark
Matters and Disputes• Bankruptcy & Debtor/Creditor Rights
ONE PENNSYLVANIA PLAZANew York, New York 10119-0196
(212) 695-8100, ext. 312Donald J. Carbone
One North Broadway, Suite 800White Plains, New York 10601
55 Harristown RoadGlen Rock, New Jersey 07452
7600 Jericho TurnpikeWoodbury, New York 11797
www.goetzfi tz.com
Goetz Fitzpatrick llp
Law Offices
C. Jaye Berger
110 East 59th Street, 22nd FloorNew York, New York 10022
TEL: (212) 753-2080
• Real Estate and Corporate Law
• Renovation and Construction Law
• Mechanic’s Liens
• Contract Drafting and Review
• Litigation in State and Federal Courts
30 STA Subcontractors News
ADVERTISEMENT
135 Crossways Park Drive, Suite 201, Woodbury, New York 11797 | Tel: 516.681.1100 | Fax: 516.681.1101 | www.kdvlaw.com
Jason LangeAssociate
Muhammad IkhlasAssociate
Matthew MineroPartner
Andrew RichardsPartner
Chair of KDV’s Construction Practice
Kaufman Dolowich & Voluck Is A Full-Service Litigation Firm That Understands Your Business Needs
In today’s business climate, companies face risks on a variety of fronts when a dispute arises. Our attorneys are proactive, pragmatic and result-oriented. We always act in the best interests of our clients and strive to achieve favorable results whether
by litigation or through settlement whenever alternate resolution is possible.
Construction Law
▪ Contract Drafting and Negotiation ▪ Construction Defect Litigation ▪ Claims, Litigation, Arbitration and Mediation
- Breach of Contract - Extra Work - Wrongful Termination - Performance and Payment Bond - Non-Payment - Defective Work - Mechanic’s Lien - Delay Claims
Commercial Litigation
▪ Real Estate Claims and Disputes ▪ Fidelity and Surety
Labor & Employment Law on Behalf of Management
▪ Wage and Hour Litigation and Compliance ▪ Collective Bargaining and Negotiations ▪ Human Resources Counseling and Training ▪ Employment Agreements ▪ Risk Management ▪ Union Arbitrations and Grievances ▪ Whistleblower and Retaliation Claims
Jeffery A. MeyerPartner
31June 2014
ADVERTISEMENT
Constructing Your Wealth Providing builders and contractors with
a wealth of exceptional services
ROSEN SEYMOUR SHAPSS MARTIN & COMPANY LLP
Construction Services Group
757 Third Avenue • New York, New York 10017Telephone (212) 303-1800Facsimile (212) 755-5600
Frank A. Petitto, CPA Dov Klein, CPA Michael Hochman, CPA, CCIFP William Hughes, CPA
E-mail [email protected] • www.rssmcpa.com
Additional Offices in Garden City and White Plains, NY
• Cash Flow Management• Estate Planning• Contract Cost Accounting
• Litigation Support• Financing & Bonding• Taxation Services
• Accounting & Auditing• Succession Planning• Budgeting & Forecasting
10 Esquire Road, Suite 4 • New City, New York 10956Telephone (845) 634-5300Facsimile (845) 634-5409
C
M
Y
CM
MY
CY
CMY
K
Construction half page-Color.pdf 1 10/16/12 8:54 AM
32 STA Subcontractors News
Subcontractors News1430 BroadwaySuite 1600New York, NY 10018T: 212.398.6220F: 212.398.6224e-mail: [email protected]: www.stanyc.com
Offi cersJerry Liss, PresidentA. Liss & Co. Inc. Robert J. Ansbro, 1st Vice PresidentThe New York Roofi ng Company Robert Weiss, 2nd Vice PresidentA.J. McNulty & Co. Inc. Peter Cafi ero, TreasurerIsland Painting John A. Finamore, SecretaryJordan Panel Systems
Hank Kita, Executive DirectorSubcontractors Trade Association Henry Goldberg, Legal CounselGoldberg & Connolly
Active Past PresidentsGreg S. Fricke, Jr.Leonard Powers, Inc. Alan Nathanson (Honorary)Forsythe Plumbing & Heating Corp.
Lawrence RomanWDF, Inc. Arthur RubinsteinSkyline Steel Corp.
Robert SamelaA.C. Associates Gary Segal (Honorary)Five Star Electric Corp.
Lawrence WeissA.J. McNulty & Co., Inc. Scott RivesWoodworks Construction Co, Inc.
Board of DirectorsJoseph Azara Jr.C.D.E. Air Conditioning
Christine BocciaJD Traditional Industries
Dan J. DeVitaPenava Mechanical Corp.
John DierksDierks Heating Company, Inc
Andrew DrazicATJ Electrical
Brent FleisherEnvironet Systems
James FlynnIndependent Temperature Control
Patrick GallagherBP Mechanical Corp.
Craig GilstonGilston Electrical Contracting
Gloria KemperRecon Construction Corp.
Joseph LeoAtlantic Contracting & Specialties, LLC
Stephen LondonCommercial Electrical Contractors
Jeffrey MiladMilad Contracting Corporation
Randy RifelliUnited Iron, Inc.
Guy Vande VaarstEmpire System Solutions
Upcoming EventsExecutive Committee MeetingThursday, September 48:30AM Board MeetingTuesday, September 95:30PM General Membership MeetingWednesday, October 15:30PM
trengthen New York’s construction industry
each member firms to increase business opportunities
dvocate to preserve subcontractors’ rights
O U R M I S S I O N S TAT E M E N T
ADVERTISEMENT
Manhattan Long Island212-661-6166 516-256-3500www.grassicpas.com
find the balance to gain a competitive edge
For more than 30 years, Grassi & Co.’s Construction Practice has been assisting contractors, engineers, suppliers and distributors minimize their tax liability, uncover potential savings, and build a successful future.
Manhattan Long Island