STA May 2015 Newsletter

1May 2015

Industry Leaders Honored at 46th Annual Construction Awards

SubcontractorS newSBringing New York’s Union Subcontractors Together to Build a Stronger Construction Industry

May 2015

2 President’s Message By Robert J. Ansbro

3 New York City Department of Buildings Releases Blueprint For Change At the Agency By Hank Kita

6 46th Annual STA Construction Awards Dinner Review

12 M/W/DBE Credit Recognition for the Purchase of Material and Supplies By Henry L. Goldberg

18 OSHA Issues Final Rule for Confined Spaces

22 New Members! & SCA to Hold “Change Order Process” Training Session

IN THIS ISSUE

If you would like to receive a hard copy of Subcontractors News in the mail

each month, please email your full mailing address to [email protected]

with the subject line “Subcontractors News Hard Copy Request”

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2 STA Subcontractors NewsSTA Subcontractors News2

President’s MessageMay 2015

On behalf of our Board of Directors, I would like to thank all of the STA members and the construction industry

community for supporting our 46th Annual Construction Awards Dinner. I would like to extend a very special

congratulations and thank you to our honorees, David Worsley, Milo E. Riverso, Scott DeMatteis and Weir

Welding. I hope all of our guests enjoyed a great evening at the Glen Island Harbour Club.

As you will read in this issue, the New York City Department of Buildings (NYCDOB) Commissioner Rick Chandler

announced a new four-year plan to reform the agency and improve it to help achieve the goals of both New York

building contractors and residents.

The STA, in coordination with the Associated General Contractors of New York (AGC), and the New York City

School Construction Authority will be holding an SCA training session on their “change order process” on

Wednesday, June 24 at 9:00 a.m. The training session will be held at the SCA offices located at 30-30 Thomson

Avenue in Long Island City, New York.

The Occupational Safety and Health Administration (OSHA) also recently issued a final rule to increase

protections for construction workers in confined spaces. This rule was released on May 1 and takes effect on

August 3, 2015. It replaces OSHA’s one training requirement for confined space work with a comprehensive

standard that includes a permit program designed to protect workers from exposure to many hazards associated

with work in confined spaces.

The Subcontractors Trade Association is proud to welcome its newest members: Cannon Mechanical Inc., Marjam

Supply Co. and Transel Elevator & Electric (TEI Group). We look forward to welcoming them to our association.

Sincerely,

Robert J. Ansbro

3May 2015

NYCDOB Releases Blueprint for Change at the Agency

New York City Department of Buildings (NYCDOB)

Commissioner Rick Chandler recently announced a

new plan that will fundamentally reform the agency

to enhance public and worksite safety, slash wait

times and delays and modernize all aspects of the

agency to meet the needs of New York City builders

and residents. This blueprint was contained in a

report released by the agency entitled “Building One

City: A Blueprint for Fundamental Transformation at

the New York City Department of Buildings.” This

report follows an earlier pledge by Mayor Bill de

Blasio to provide the NYCDOB with $120 million and

320 new positions over the next four years.

The blueprint as prescribed in the “Building One City”

report addresses improvements and enhancements

to the NYCDOB’s operations in four specific areas:

1. Enhance Public Safety and Integrity

The Department of Buildings will be seeking to

improve enforcement methods in public safeguarding

and integrity compliance. These changes are

intended to promote best safety practices by the

development community and allow the NYCDOB to

proactively assess and mitigate risks associated with

construction sites and professionals that may pose

a danger to the public. Public safety and integrity

reforms prescribed by the report include:

• The creation of a Risk Management Office to

determine liability;

• The Release of an industry code of conduct;

• The enhancement and increase of legal action

by the Department against “bad actors.”

2. Streamline NYCDOB Processes

The Department is planning to enhance and

streamline some of its administrative processes in

order to make its operational systems more user-

friendly. Process enhancements detailed in the

report include:

• Redesign the plan review process and online

interface to reduce wait times;

• Develop and build a new unit to process

affordable housing projects;

• Implement online appointment scheduling and

optimize routing;

• Develop an interagency working group to

simplify development.

3. Transparent Compliance Requirements

The report calls for measures that will create more

regulatory transparency and allow the NYCDOB to

improve its industry outreach in order to promote

safety and sustainable development. Transparency

change will include:

• Consolidation of the Building Codes to enhance

compliance;

• Standardizing the plan objection process to

reduce re-examinations.

BY HANk kItA, StA ExECutIvE DIRECtOR

continued on page 4

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4 STA Subcontractors News

4. Commitment to Customer Service

In addition to the process changes, the NYCDOB

commits to enhancing the customer service

experience by investing in agency staff and better

public offices. Planned service changes include:

• Offer project advocates to resolve project

complications;

• Provide after hours inspection services;

• Develop an equitable fee structure;

• Redesign Borough Office public spaces.

According to NYCDOB Commissioner Chandler, the

Department will coordinate the reforms outlined

in the report with external stakeholders, city

and state agencies and authorities, utilities, and

elected officials throughout the implementation

of the initiative. Further implementation will be

supported and directed by a newly created “Change

Management Office” that will held the NYCDOB

achieve its goals and commitments as outlined in

the report.

In order to directly access the Building One City

report, please click here.

continued from page 3

5May 2015

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Over 300 guests attended the recent STA 46th Annual

Awards Dinner.

The awards ceremony, which was held during the

dinner on Saturday, May 9 at Glen Island Harbour Club,

honored four distinguished industry leaders who have

significantly contributed to New York City’s skyline in

the past year and beyond.

David Worsley of Silverstein Properties was awarded

the Silver Shovel Award. Mr. Worlsey was chosen as

the recipient of this award due in part to his work

as Senior Vice President and Director or Design and

Construction for the past 11 years at Silverstein

Properties. He oversees all new construction for the

company, including the rebuilding of World Trade

Center towers 2, 3 and 4 and the MTA Transportation

Hub in lower Manhattan that is due to open early this

summer.

Milo E. Riverso of STV Group, Inc. was honored with

the Michael Mazzucca Lifetime Achievement Award.

Mr. Riverso has truly had an impressive career in the

industry. He served as the President and Chief Executive

Officer of the New York City School Construction

Authority from 1997 to 2001, where he supervised

STA Subcontractors News6

46th Annual StA Construction Awards Dinner Review

continued on page 10

7May 2015

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the construction processes of 1,199 new schools. In

2005, Mr. Riverso joined STV Group and quickly rose

to Executive Vice President prior to being named CEO

of the company in 2011. Under his leadership, STV’s

construction management division tripled in size.

Scott DeMatteis of DeMatteis Construction Corporation

received the Builder of the Year Award. DeMatteis

Construction is one of the oldest family-owned

construction companies in New York and one of the

nation’s largest of its kind. DeMatteis has worked on

projects for many New York City government agencies

such as the NYC SCA, The U.S. Department of State

and the NYC Department of Sanitation. Mr. DeMatteis

is the third generation to run the company and serves

as Chairman and Vice President.

The Ronald Berger Subcontractor of the Year Award

was presented to Weir Welding and posthumously

honored Mr. Charles Weir, who served the company as

President and Co-Owner for 17 years until his passing

on January 9th of this year. Receiving the award the

night of the dinner were his children, Mrs. Allison Forys

and Mr. Tom Weir. Weir Welding, who is celebrating

their 50th anniversary, is a leader in the production of

high-quality structural steel with steel plants in both

New Jersey and Pennsylvania.

The Subcontractors Trade Association Board of

Directors and Officers would like to thank all of those

who attended the dinner and those who placed

advertisements in the 46th Annual Awards Journal

for their ongoing support of the association. The

STA would not be able to represent New York City’s

union subcontractors without the backing of its many

benefactors.

To view the 46th Annual Awards Journal and photos

from the dinner, please visit www.stanyc.com.

continued from page 8

9May 2015



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11May 2015

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M/W/DBE Credit Recognition for the Purchase of Material and Supplies

As pressure increases for ever higher participation goals,

we are receiving an increase in inquiries regarding

the utilization of M/W/DBE suppliers. A major goal in

the development of any prime contractor’s M/W/DBE

“Utilization Plan” is to maximize “credit recognition”

for dollars spent. This clearly requires up-to-date

knowledge of the regulatory scheme.

Nowhere are the disparities between local (NYC),

State (Empire State Development Corp.) and Federal

requirements more apparent (and arbitrary), than in

the area of the rules relating to M/W/DBE credits for

dollars spent for the purchase of construction material

and supplies. If all levels of government involved are

ostensibly motivated by the same social goals, how can

the requirements be so disparate? For example, if the

federal government recognizes a credit of up to 100%

of the amount spent on construction material and

supplies purchased from a DBE, how (and why) would

NYC give absolutely no credit for supply dollars?

It seems self-evident that something is amiss. There

have been rumors for years in government circles of a

move towards greater consistency and uniformity. This

important reform is long overdue. For now, however,

we would like to address the rules, as they now exist,

at each level of government, regarding the recognition

of M/W/DBE credits for the purchase of supply and

materials.

The following are the current rules that the federal,

state and New York City levels for material and supply

purchases:

Federal (for DBEs only)

DBE Manufacturers – 100% of cost of materials and

supplies purchased are credited towards DBE goals.

DBE Supplier/Regular Dealer – 60% of the cost of

materials and/or supplies are credited towards DBE

goals.

DBE “Broker” – For a DBE who is not a manufacturer or

not a regular dealer (i.e., is a “broker”), only count the

fees or commissions charged by the DBE for assistance

in the procurement of materials and supplies, or other

related fees or transportation charges, for the delivery

of the material or supplies to a job site. In other words,

only what the DBE, itself, actually received. Do not

count cost of actual materials and supplies themselves.

The changes made to the DBE Rules effective November

3, 2014 now require that the eligibility for credit for

material and supplies (e.g., whether a DBE is a regular

dealer or broker/transaction expediter) will be made on

a contract-by-contract basis.

New York State (M/WBE)

Generally, NYS credits 100% of the dollar value of a

supply contract provided by an MBE or WBE.


BY: HENRY L. GOLDBERG, MANAGING PARtNER, GOLDBERG & CONNOLLY, StA LEGAL COuNSEL

13May 2015

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14 STA Subcontractors NewsSTA Subcontractors News14

There is also a special rule, however, for State Revolving

Fund financed projects (e.g., NYC DEP). There will be

100% credit for supplies, but only up to 25% of the total

goal for the entire project.

The changes made to the DBE Rules effective November

3, 2014 now require that the eligibility for credit for

material and supplies (e.g., whether a DBE is a regular

dealer or broker/transaction expediter) will be made on

a contract-by-contract basis.

New York City (M/WBE)

No credit is given for use of M/WBE suppliers.

NYC is clearly wrong-headed in its approach. Selling

material and supplies would be an excellent path

for minorities or women to enter the industry and

learn its complexities. The federal approach has been

successful with few if any reported abuses. (Despite

incessant increased demands by NYC and New York

State authorities to increase goal percentages, and the

admitted unavailability of adequate (not just “certified,”

but competent) MBEs to meet those goals, the very

least NYC should do would be to revisit its arbitrary

categorical refusal to recognize dollars expended for

construction material and supplies.)

G&C Commentary

For now, there is no opportunity to seek credit for the

purchase of construction materials and supplies in your

Utilization Plan for a New York City funded project.

However, as detailed above, such opportunities do

exist for federally funded and New York State funded

projects, with certain limitations as cited above.

In addition, as with the use of any certified entity, it

is important to perform due diligence in the selection

of any certified manufacturer, dealer/supplier or broker

(e.g., perform a site visit) and to have a substantiated

basis for your understanding that such a business will be

performing a commercially useful function on a project.

In the face of the ever-increasing goals being imposed

upon contractors by governments at all levels,

knowledge of every opportunity to facilitate compliance

is essential.

Please feel free, as always, to direct any questions to

our attention.

Henry L. Goldberg may be contacted by email,

[email protected] or by telephone,

516-764-2800.

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.

© Goldberg & Connolly 2015

15May 2015

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MEET CONSTRUCTION MANAGEMENT PROCUREMENT REPSJUNE 17, 2015

When: Wednesday, June 17, 2015Cocktails: 5:15 pm – 6 pmDinner: 6 pmAnnual Meeting: 6:15 pmPresentations: 6:30 pm

Where: Center for Automotive Education and Training15-30 Petracca PlaceWhitestone, NY 11357

$75 for Members($80 at the door)$85 for Non-Members

Call or Print & Fax the Form Below

REGISTRATION FORM – GENERAL MEMBERSHIP MEETING – JUNE 17, 2015

Subcontractors Trade Association 1430 Broadway, Suite 1106 • New York, NY 10018 Tel: (212) 398-6220 • Fax: (212) 398-6224 • [email protected]

Name(s) Company Tel: Fax: Email:

$75 for Members ($80 at the door) $85 for Non-Members Check Enclosed: $ for reservationsTo pay by credit card, please contact Samantha Sweeney at 212-398-6220.

STA ANNUAL GENERAL MEMBERSHIP MEETING

This is the chance for STA members to meet Procurement and Management Representatives from three of New York City’s major construction management firms.

Procurement and management staff from the following firms will be on hand to make presentations on their upcoming work and discuss their procurement policies:

Lend Lease | Tishman Construction | Turner Construction Company

Guests will have a chance to exchange information with and ask questions of these firms’ procurement representatives throughout the meeting.

This General Membership Meeting will also serve as the STA’s Annual Meeting where the 2015-2016 STA Board of Directors and Officers will be elected.

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17May 2015

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OSHA Issues Final Rule for Confined Spaces

The Occupational Safety and Health Administration

(OSHA) issued a final rule to increase protections for

construction workers in confined spaces. This rule

was released on May 1 and takes effect on August

3, 2015.

There are 5 key differences from the construction

rules and several areas where OSHA has clarified

existing requirements.

The five new requirements include:

1. More detailed provisions requiring coordinated

activities when there are multiple employers at

the worksite.

2. Requiring a competent person to evaluate the

work site and identify confined spaces, including

permit spaces.

3. Requiring continuous atmospheric monitoring

whenever possible.

4. Requiring continuous monitoring of engulfment

hazards.

5. Allowing for the suspension of a permit, instead

of cancellation, in the event of changes from

the entry conditions list on the permit or an

unexpected event requiring evacuation of the

space.

OSHA’s added provisions to the new rule that

clarifies existing requirements in the General

Industry standard include:

1. Requiring that employers who direct workers to

enter a space without using a complete permit

system prevent workers’ exposure to physical

hazards through elimination of the hazard or

isolation methods such as lockout/tagout.

2. Requiring that employers who are relying on

local emergency services for emergency services

arrange for responders to give the employer

advance notice if they will be unable to respond

for a period of time (because they are responding

to another emergency, attending department-

wide training, etc.)

For additional information on the final rule or to

access compliance assistance material, please visit

OSHA’s Confined Spaces in Construction webpage.



19May 2015

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21May 2015

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the StA Welcomes its Newest Members!

The Subcontractors Trade Association is proud to welcome its newest members Cannon Mechanical Inc.,

Marjam Supply Co. and Transel Elevator & Electric (TEI Group)

Cannon Mechanical Inc.HVAC Installation 73 Market Street, Suite 376Yonkers, NY [email protected]: Patrick Gallagher

Marjam Supply Co.Supplier855T Conklin StreetFarmingdale, NY [email protected]: Seeta Lochan

Transel Elevator & Electric Inc. (TEI Group)Elevator Contractors 509-525 West 34th Street, 4th FloorNew York, NY [email protected]: Juan Rondon

SCA to Hold “Change Order Process” training Session

At the request of the STA and the Associated General

Contractors of New York (AGC), the New York City

School Construction Authority will be holding a

training session on their “change order process”

on Wednesday, June 24 at 9:00 a.m. The training

session will be held at the SCA offices located at 30-

30 Thomson Avenue in Long Island City, New York.

All STA members are invited to attend this

workshop. The training program will focus on a

review of the change order process, specifically the

revisions to Article 7. The SCA’s Vice President of

Construction, George Toma, will be a part of the

SCA’s training team at this program. Attendees will

have an opportunity to interact with SCA staff on

this issue and pose questions to the training staff.

If you or anyone from your company wishes to attend

this session on June 24, please contact Samantha

Sweeney at the STA via email to ssweeney@stanyc.

com or by calling 212-398-6220 to confirm your

participation.

All STA members doing business with the NYC

SCA are urged to consider attending this training

program.


23May 2015

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Subcontractors trade Association 1430 Broadway Suite 1106 New York, NY 10018T: 212.398.6220 F: 212.398.6224e-mail: [email protected] website: www.stanyc.com OfficersRobert J. Ansbro President The New York Roofing Company Robert Weiss 1st Vice President A.J. McNulty & Co. Inc. Peter Cafiero 2nd Vice President Island Painting John A. Finamore Treasurer Jordan Panel Systems Joseph Leo Secretary Atlantic Contracting & Specialties, LLC

Hank Kita Executive Director Subcontractors Trade Association Henry Goldberg Legal Counsel Goldberg & Connolly Active Past PresidentsGreg S. Fricke, Jr.Leonard Powers, Inc. Jerry LissA. Liss & Co. 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 Boccia JD Traditional Industries Dan J. DeVita Penava Mechanical Corp. John Dierks Dierks Heating Company, Inc Andrew Drazic ATJ Electrical Brent Fleisher Environet Systems James Flynn Independent Temperature Control Patrick Gallagher BP Mechanical Corp. Stephen Gianotti Arcadia Electrical Co., Inc. Sandra Milad Gibson Milad Contracting Corporation

Craig Gilston Gilston Electrical Contracting Gloria Kemper Recon Construction Corp.

Randy Rifelli United Iron, Inc. Guy VandeVaarst Firecom Inc. John Villafane Eldor Electric

upcoming Events

STA Board of Directors MeetingTuesday, June 9, 5:30 p.m.

Annual STA General Membership MeetingWednesday, June 17, 5:30 p.m.

School Construction Authority “Change Order Process” TrainingWednesday, June 24, 9 a.m.

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Documents

STA May 2015 Newsletter