1. business and industrial
2. construction

THE
ASA’s
THE OFFICIAL EDUCATIONAL JOURNAL OF THE AMERICAN SUBCONTRACTORS ASSOCIATION
WWW.ASAONLINE.COM
Flawless
Execution — The
‘Four Cs’ Affecting
Construction
Industry
DECEMBER 2014
Industry
Trends
Transform
Construction
Projects with
Integrated Energy
Solutions
Increasing Fuel
Efficiency Through
Smart Fleet
Management
Employee Fleet
Accidents:
Overlooked and
Costly
10 Things to
Remember When
Your Work Is
Delayed
Legally Speaking:
Upcoming
Regulations from
an HR Perspective
Register Now!
March 26-29, 2015
Seattle, WA • See page 6
MAY 7 TH , 8:10 A .M .
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R E A L IZE D THE
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The examples provided in this material are for illustrative
purposes only and any similarity to actual individuals,
entities, places or situations is unintentional and purely
coincidental. Please remember that only the relevant
insurance policy can provide the actual terms, coverages,
amounts, conditions and exclusions for an insured. All
products and services may not be available in all states and
may be subject to change without notice. CNA is a registered
trademark of CNA Financial Corporation. Copyright © 2014
CNA. All rights reserved.
THE
ASA’s
December 2014
Features
EDITORIAL PURPOSE
The Contractor’s Compass is the monthly educational
journal of the Foundation of the American Subcontractors
Association, Inc. (FASA) and part of FASA’s Contractors’
Knowledge Network. The journal is designed to equip
construction subcontractors with the ideas, tools and
tactics they need to thrive.
Flawless Execution — The ‘Four Cs’ Affecting
Construction Industry......................................................................... 8
The views expressed by contributors to The Contractor’s
Compass do not necessarily represent the opinions of
FASA or the American Subcontractors Association, Inc.
(ASA).
Transform Construction Projects with Integrated
Energy Solutions............................................................................... 11
by Greg Schoppman
by Mark Drury
EDITORIAL STAFF
Editor-in-Chief, Marc Ramsey
Employee Fleet Accidents: Overlooked and Costly................. 12
MISSION
FASA was established in 1987 as a 501(c)(3) taxexempt entity to support research, education and
public awareness. Through its Contractors’ Knowledge
Network, FASA is committed to forging and exploring
the critical issues shaping subcontractors and specialty
trade contractors in the construction industry. FASA
provides subcontractors and specialty trade contractors
with the tools, techniques, practices, attitude and
confidence they need to thrive and excel in the
construction industry.
FASA BOARD OF DIRECTORS
Richard Wanner, President
Letitia Haley Barker, Secretary-Treasurer
Brian Johnson
Robert Abney
Anne Bigane Wilson, PE, CPC
by Fred Myatt
Increasing Fuel Efficiency Through Smart
Fleet Management............................................................................ 14
by Jonathan Durkee
10 Things to Remember When Your Work Is Delayed............. 15
by Donald Gregory, Esq.
Departments
SUBSCRIPTIONS
The Contractor’s Compass is a free monthly publication
for ASA members and nonmembers. Subscribe online at
www.contractorsknowledgedepot.com.
CONTRACTOR COMMUNITY............................................................ 4
ADVERTISING
Interested in advertising? Contact Tony Kozak at (716)
844-8174 or [email protected].
LEGALLY SPEAKING.......................................................................... 16
EDITORIAL SUBMISSIONS
Contributing authors are encouraged to submit a brief
abstract of their article idea before providing a fulllength feature article. Feature articles should be no
longer than 1,500 words and comply with The Associated
Press style guidelines. Article submissions become the
property of ASA and FASA. The editor reserves the right
to edit all accepted editorial submissions for length,
style, clarity, spelling and punctuation. Send abstracts
and submissions for The Contractor’s Compass to
[email protected].
Upcoming Regulations from an HR Perspective
Jamie Hasty
Quick Reference
ABOUT ASA
ASA is a nonprofit trade association of union and
non-union subcontractors and suppliers. Through a
nationwide network of local and state ASA associations,
members receive information and education on relevant
business issues and work together to protect their rights
as an integral part of the construction team. For more
information about becoming an ASA member, contact
ASA at 1004 Duke St., Alexandria, VA 22314-3588, (703)
684-3450, [email protected], or visit the ASA Web
site, www.asaonline.com.
ASA/FASA CALENDAR..................................................................... 18
COMING UP....................................................................................... 18
LAYOUT
Angela M Roe
[email protected]
© 2014 Foundation of the American
Subcontractors Association, Inc.
T H E
C O N T R A C T O R ’ S
C O M P A S S D E C E M B E R
2 0 1 4
3
Contractor Community
U.S. Court Grants
Rehearing Requested by
ASA in Texas CGL Case
After ASA and others in the
construction industry argued that
an appeals court opinion called into
question whether subcontractors
can depend on their commercial
general liability insurance policies
for coverage — coverage previously
upheld by other courts — a U.S.
appeals court on Oct. 29 withdrew its
prior opinion, reversed a trial court,
and granted a rehearing, saying the
contractual liability exclusion does
not exclude coverage for property
damage arising out of breach of a
contractor’s duty to repair.
In the U.S. Court of Appeals for the
5th Circuit’s Opinion on Rehearing
in the case of Doug Crownover and
Karen Crownover v. Mid-Continent
Casualty Company, the court
essentially equated it to the same
type of liability for breach of the
implied warranty of performance of
the work in a good and workmanlike
manner under Texas law. That liability
does not impose extra liability
beyond general law.
The opinion amounts to another
limitation of attempts to improperly
apply the contractual liability
exclusion in the construction context.
It includes a discussion of other
issues, all of which were resolved
in favor of coverage for the insured
contractor.
“This case will have big picture
significance because it sets out
another example of a court beating
down the effort to extend the
contractual liability exclusion to
general breaches of contract,” said
Patrick J. Wielinski, an attorney with
4
D E C E M B E R
2 0 1 4 Cokinos, Bosien & Young in Irving,
Texas, who prepared an amicus brief
for ASA in the case.
In the brief, filed on July 18, ASA,
the Texas Building Branch of the
Associated General Contractors of
America, and the Texas Association
of Builders asked the U.S. appeals
court for a panel rehearing to decide
whether damages for warranty claims
due to an “occurrence” are covered
under a standard CGL policy or
are excluded from coverage by the
“contractual liability” exclusion.
Read more about this case on the
ASA Web site. ASA’s Subcontractors
Legal Defense Fund supports ASA’s
critical legal activities in precedentsetting cases to protect the interests
of all subcontractors. Contributions
may be made to the SLDF via the ASA
Web site.
ASA and Surety Industry
Associations Update
P3 Guide
Construction of projects for
public use through public-private
partnerships continues to increase at
all levels of government, including
at the state and local levels. Many of
the P3 programs authorized by the
states, however, provide no payment
protections for subcontractors and
suppliers on P3 projects, on which
mechanic’s liens and the requirement
for payment bonds most likely do not
apply.
ASA, in collaboration with the
National Association of Surety
Bond Producers and The Surety &
Fidelity Association of America, has
reviewed the state laws authorizing
construction projects to be financed
by P3s and determined which
T H E
programs provide payment protection
for construction subcontractors
and suppliers through payment
bonds. ASA, NASBP and SFAA
have published a revised guide,
“Public-Private Partnership Laws in
the States, Including Surety Bond
Requirements” (2014 Edition), to help
subcontractors determine whether
they have payment protections before
they bid on a P3 project.
ASA expects as many as a dozen
state legislatures to consider P3
legislation during the 2015 legislative
sessions.
Dodge Data & Analytics
Economist Robert Murray
Tells a ‘Different Story’
for 2015
“The story is a little different this
time,” says Dodge Data & Analytics
economist Robert Murray. “We’re
moving beyond a hesitant, gradual
recovery. Things are starting to get
better.” Speaking during Dodge Data
& Analytics’ 76th annual Outlook
Executive Conference on Nov. 6 in
Washington, D.C., Murray painted
a “pretty good picture for 2015,”
noting that the “cyclical upturn
is continuing to unfold.” “The
construction expansion should
become more broad-based in 2015,
with support coming from more
sectors than was often the case in
recent years,” Murray said. “The
economic environment going forward
carries several positives that will help
to further lift total construction starts.
Financing for construction projects is
becoming more available, reflecting
some easing of bank lending
standards, a greater focus on real
estate development by the investment
C O N T R A C T O R ’ S
C O M P A S S
community, and more construction
bond measures getting passed. While
federal funding for construction
programs is still constrained, states
are now picking up some of the slack.
Interest rates for the near term should
stay low, and market fundamentals
(occupancies and rents) for
commercial building and multifamily
housing continue to strengthen.”
In the 2015 Dodge Construction
Outlook, Murray predicts total U.S.
construction starts to rise 5 percent
in 2014 to $563.9 billion and climb
another 9 percent to $612 billion in
2015. He forecasts nonresidential
construction to grow 14 percent in
2014, “helped by additional growth for
commercial building and a surge of
energy-related manufacturing plants.
What’s different about 2014 is that
the institutional structure types are
now beginning to contribute to the
growth for nonresidential building.”
Highlights by sector include:
•Single Family Housing: +4
percent to $165.4 billion (2014) and
+15 percent to $189.7 billion (2015).
•Multifamily Housing: +22
percent to $61.9 billion (2014) and
+9 percent to $67.2 billion (2015).
•Commercial Buildings: +14
percent to $76.3 billion (2014) and
+15 percent to $87.7 billion (2015).
•Institutional Buildings: +4
percent to $95.3 billion (2014) and
+9 percent to $103.6 billion (2015).
•Manufacturing Buildings: +57
percent to $29.1 billion (2014) and
-16 percent to $24.4 billion (2015).
•Public Works: -9 percent to $113.4
billion (2014) and +5 percent to
$118.8 billion (2015).
T H E
C O N T R A C T O R ’ S
•Electric Utilities: -3 percent to
$22.5 billion (2014) and -9 percent
to $20.5 billion (2015).
McGraw-Hill Construction is now
Dodge Data & Analytics.
ASA Protests Bond Waiver
on Texas City Baseball
Complex
In response to media reports
that the City of Kilgore (Texas) was
poised to waive the surety bond on
a planned baseball complex, ASA
sent a letter to members of the City
Council and construction officials
urging the city “to require the prime
contractor to provide a 100 percent
payment bond, as required by Texas
law.” ASA told the City that “[w]ithout
a payment bond, subcontractors and
suppliers will encounter a dangerous
void in essential payment protections
for work performed.”
The severe risk inherent in
the absence of reliable payment
protection can “only reasonably be
expected to increase costs for the
overall construction project being
undertaken, as subcontractors and
suppliers seek to accommodate the
increased risk or even completely
deter bidding by the most skilled
subcontractors and suppliers, whose
resources can be directed at projects
for which payment protections are
available.”
ASA Chief Advocacy Officer E.
Colette Nelson noted that Kilgore is
a prime example that public entities
around the country are increasingly
waiving or considering waiving surety
bonds. She emphasized the need for
ASA and its chapters to intervene
at every level of government
considering waiving payment
assurances. In addition, she reminded
subcontractors on public work to
confirm that the prime contractor has
provided a payment bond, to obtain a
copy of that bond, and to assure that
it can comply with the all of the notice
and claims procedures.
U.S. Strengthens
Subcontractor Payment
Assurances
On Oct. 16, the Department of
Treasury issued a new rule that ASA
Chief Advocacy Officer E. Colette
Nelson says “will increase the value
of payment bonds as a payment
assurance to subcontractors and
suppliers on federal construction
projects.”
Under the new rule, a federal
agency may decline to accept a
surety bond “for cause,” even if the
bond is underwritten by a Treasurycertified surety, as long as it follows
certain administrative steps assuring
transparency and due process. “For
cause” includes but is not limited to
“circumstances when a surety has not
paid or satisfied an administratively
final bond obligation.”
In a March 2011 letter to the
Treasury, ASA supported the
Department’s proposed rule
emphasizing that subcontractors
working on federal construction
projects “rely on the payment bonds”
underwritten by Treasury-certified
(continued on page 7)
C O M P A S S D E C E M B E R
2 0 1 4
5
Feature
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March 26 - 29, 2015
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(continued from page 5)
sureties to assure final payment.
As urged by ASA, the final rule also
encourages agencies “to ensure that
persons conducting business with
the agency are aware that bonds
underwritten by the particular certified
company will not be accepted.”
The new rule will take effect on
Dec. 15.
FASA’s Contingent
Payment Clauses in the 50
States Answers Questions
About Pay-If-Paid
“Pay-if-paid” contract clauses
can cause big problems for unpaid
construction subcontractors and
suppliers. Such clauses specify that a
subcontractor or material supplier will
not be paid for the work it performed
or the supplies or services it provided
“if” the general contractor doesn’t
receive payment from the project
owner.
Pay-if-paid is not enforceable in
all circumstances, however, and the
Foundation of ASA’s 2014 Edition of
Contingent Payment Clauses in the
50 States helps subcontractors and
suppliers understand their risk.
Contingent Payment Clauses
in the 50 States is available as a
downloadable PDF document only
to ASA members. (Go to www.
asaonline.com, click on LOGIN/
ACCESS MEMBER RESOURCES, and
log-in with your email address and
password. Then, click on “Advanced
Site Search” in the upper right-hand
corner of the site and search for
“contingent.” The manual will appear
under “Members Only and Limited
Access Documents.”)
Special thanks to ASA general
counsel Kegler, Brown, Hill & Ritter,
Columbus, Ohio, for preparing this
manual for FASA.
Subcontractors and suppliers can
learn more about pay-if-paid and
T H E
C O N T R A C T O R ’ S
pay-when-paid clauses with the
FASA video-on-demand, “The Big IF
in Pay-If-Paid Clauses” (Item #8005),
presented by Donald Gregory, Esq.,
Kegler, Brown, Hill and Ritter. The
video-on-demand is $65 for ASA
members and $95 for nonmembers.
satisfy the amounts it is owed.”
ASA’s Subcontractors Legal
Defense Fund supports ASA’s critical
legal activities in precedent-setting
cases to protect the interests of all
subcontractors. Contributions may be
made to the SLDF via the ASA Web
site.
California Supreme Court
OSHA Requests
Protects Subcontractor
Payment by De-publishing Information on Chemical
Exposure Limits
Case
On Nov. 12, the California Supreme
Court declined to review and, at
the same time, de-published a case
concerning mechanic’s liens so that
it does not set a precedent eroding
subcontractor payment protections.
The decision of the Court of Appeal
in Golden State Boring & Pipe
Jacking, Inc. v. Safeco Insurance
Company, et al seemed to suggest
that a contractor would be required
to serve a Stop Payment Notice when
completing its portion of the work and
again by completion or acceptance of
the project by a public entity.
The California Stop Payment Notice
statute is designed to protect payment
rights for contractors who have not
been paid for labor or materials used
to improve real property. In a Sept.
11 letter to the Court, ASA and ASA
of California stated, “[T]he Court
of Appeal decision has taken any
meaningful payment protection from
the Stop Payment Notice.” ASA further
explained that contractors “typically
serve Stop Payment Notices, at the
latest, upon completion of their work
and often times at the time of failure
to receive a progress payment. The
reason for this is a Stop Payment
Notice is only effective if the public
entity is still holding funds dedicated
to the project. If a contractor waits
until the project is over, as opposed
to conclusion of its own work, the
contractor runs the risk that the public
entity will have no money left to
C O M P A S S The Occupational Safety and
Health Administration announced
a dialogue on the management of
hazardous chemical exposures in
the workplace and strategies for
updating permissible exposure limits
with the publication of a Request for
Information on Oct. 10.
OSHA’s PELs, which are regulatory
limits on the amount or concentration
of a substance in the air, are intended
to protect workers against the
adverse health effects of exposure
to hazardous substances. Ninety-five
percent of OSHA’s current PELs, which
cover fewer than 500 chemicals, have
not been updated since their adoption
in 1971. Further, OSHA’s current PELs
cover only a small fraction of the
tens of thousands of chemicals used
in commerce, many of which are
suspected of being harmful.
OSHA is seeking public comment
regarding current practices and future
methods for updating PELs, as well
as new strategies for better protecting
workers from hazardous chemical
exposures.
OSHA’s goal for this public dialogue
is to give stakeholders that represent
them, a forum to develop innovative,
effective approaches to improve
the health of workers in the United
States. The comment period for the
RFI will continue through April 8,
2015.
For more information, visit the
OSHA Chemical Management
Request for Information Web page.
D E C E M B E R
2 0 1 4
7
Feature
Flawless Execution — A Brief Examination of the
‘Four Cs’ Affecting Construction Industry
by Gregg Schoppman
The word that should describe the
execution practices of truly great
contractors in 2014-15 is “flawless.”
While so many firms focus strictly
on growing their backlogs, best-ofclass contractors have examined their
efforts on how they manage the work
they do have, maximizing productivity
— and their bottom line — and in
some cases, and have discovered a
new world or opportunity. Backlog
without proper execution only serves
to increase a contractor’s risk profile.
Managers and superintendents that
fail to operate with tight controls
on projects with already thin
margins place their organization
in a precarious position. The single
greatest change in the behavior of
contractors is the renewed focus on
efficiency and margin enhancing
activities.
The mantra for organizations
moving into 2015 should be a
resounding “back to basics.”
Execution will define best-of-class
contractors by not only the innovative
methods of putting work in place,
but how they embrace new tools that
have a familiar ring to them. When
examining the new context with
which the economy has presented
the industry, specifically from a
project delivery bent, contractors are
focusing on:
•Understanding the competition
and their capabilities .
•Understanding their people and
their associates’ motivations.
•Tracking and real-time production.
•Utilization of non-traditional
business development resources
to get work.
8
D E C E M B E R
2 0 1 4 •Using the post-job review and
creating a robust lessons learned
library.
•Understanding the impact of cash
flow and the customer.
•Effectively managing trade
contractors early.
•Developing a quality management
plan.
•Using prefabrication and
modularization to lower costs.
Developing a fact-based strategy
should be predicated on the “Four
Cs” — Competition, Climate,
Customer, and the Company. Using
these four parameters helps firms
critically and objectively outline the
issues affecting their business. Bestof-class firms manage their business
with the Four Cs serving as a virtual
dashboard to provide guidance and
azimuth correction.
Competition
The field of competitors has
ballooned but many would argue
that the quality of the competition
has decreased. With these inflated
bid lists, contractors believe they are
simply proposing against ignorance
and estimating blunders rather than
equal matched opponents. “There
is no way they can do it for that!”
Estimating war rooms reverberate
with these cynical guffaws as another
unqualified so-called competitor
is awarded a project. However,
contractors are taking notice of
the competition, regardless of
competence, and realizing that they
may simply be more efficient than
them. With less work to manage, bestof-class contractors are examining
how they can truly do the work more
T H E
efficiently. This involves spending
more time examining the competition
as well as more effectively measuring
production and providing subsequent
feedback more timely.
Contractors are observing how
the competition actually executes
rather than licking their bid-day
wounds. Field reconnaissance in
the industry has become essential
to honing the competitive edge.
Investigation is no longer limited
to the construction industry. Firms
are also examining how other
industries operate. For example,
Lean and Six Sigma concepts
from the manufacturing world are
penetrating the industry in an effort
to drive out waste. Regardless of the
buzzword, firms are realizing the need
to more effectively plan and track
performance. Interestingly enough,
in some cases, contractors that focus
on productivity and efficiency have
been able to increase their margins to
higher levels proportionally to what
they were making in the earlier part of
the decade.
In addition to understanding
more of the production capabilities
of the firm, the push for real-time
data becomes even more important.
Month-end cost reports are giving
way to daily production updates.
Course corrections can be made
quicker and more effectively than
simply waiting until a history lesson
from accounting is generated.
Organizations are finding that there
are many behavioral adjustments
necessary. For example, accurate
recording and timely performance
feedback must be done harmoniously
and with consistent frequency.
Furthermore, firms are learning how
C O N T R A C T O R ’ S
C O M P A S S
the feedback is delivered is almost as
important as the data itself. Done in
constructive manner, superintendents
and foremen have been less likely
to reject the information than they
would if attacked with the data.
Ultimately, firms that become more
data driven will reap the benefits of
increased firm intelligence.
Company
Getting work is no longer relegated
to the estimators. Using field assets
in the business development effort
has become commonplace. Largely
begun as an effort to retain key
field personnel during widespread
reductions in labor expenditures,
many firms utilizing field managers
as support to estimating have realized
additional benefits. For example, by
having a superintendent assist in the
development of an estimate, firms
receive field level intelligence about
constructability normally received
during a project post mortem. By
providing real-time productivity
rates and construction tactics, firms
not only enhance their ability to
successfully complete a project, but
also cross train personnel in different
organizational roles. While the
normally direct costed superintendent
becomes an overhead item, the
savings long-term is immeasurable.
Another business process that
is receiving more attention is the
post-job review. Far from being new,
project autopsies are now receiving
greater emphasis to not only capture
lessons learned, but to hopefully
improve the quality of production.
Best-of-class firms are finding
innovative ways to store and integrate
these lessons through intranets and
shared drives. The greatest lesson for
firms is to remember the importance
of this knowledge and remain
vigilant and disciplined as backlogs
improve. More often than not, this
critical process is often the first to be
vanquished when times are good.
Lastly, firms are continuing to
T H E
C O N T R A C T O R ’ S
expand their prefabrication efforts
wherever possible. For example,
countless mechanical, electrical, and
plumbing contractors are using the
confines of their yard and shop to
better control their labor costs as
well as the quality. Here is a classic
example of how Lean manufacturing
can help firms through better
material handling and the reduction
of inefficiencies in the production
process.
Customer
As projects become more plentiful
with a healthy economy, there
still remains the perception that
the market is “customer focused.”
Scrutiny on price has become
one the greatest determinants.
Management feels victimized by
the apparent weakened bargaining
power. “Do the work or we will find
someone else to do it cheaper.”
Execution best practices not only
focus on how to do more with less
but also incorporate cash flow
management into their process. With
a heightened sense of awareness,
contractors now incorporate cashflow modeling into their operating
procedures. Often victimized by their
customer’s inability to pay timely,
firms are focusing managers and
superintendents on the importance of
collections, incorporating escalation
procedures and standards to the
cadre of management processed
already in place.
Regardless of the price curve
that exists in the marketplace,
customers still expect quality
finished products. With reductions
in staff across the board, the
tendency for quality to fall is high.
High-performing organizations are
focusing on quality more through
innovative means. Viewing this as a
potential differentiator, contractors
are developing elaborate quality
management programs. Ranging
from simple field management
tools to complex training regiments,
C O M P A S S contractors — general and trade —
are honing their craft to not only
improve their efficiency but by
creating a company standard that
prevents long punch lists, extensive
close-out and costly warranty issues.
Climate
Executing projects is not limited
to firms that simply self-perform
work. While pre-screening trade
contractors is hardly considered
revolutionary, trends have shown
greater numbers of contractors
utilizing some evaluation practice
to not only judge ability but to also
determine liquidity and the ability
to fulfill payroll obligations. Best-ofclass contractors are spending more
time evaluating not just the prices of
their constituent trade contractors,
but also their ability to manage the
work once it is awarded. Once again,
with fewer project awards, managers
have the ability to scrutinize scopes
better, as well as plan more effectively
rather than simply use the low
number. Some would argue that by
not taking the low number the ability
to get work is significantly reduced.
Conversely, one must consider the
risk inherent with using said number
and being 75 percent complete with
a drywall contractor that cannot pay
its suppliers. The current climate has
made mitigating risk very challenging
but no less important. Coupled with
effective screening, project managers
are spending more time planning
with critical trade contractors early.
Preconstruction conferences are
becoming more like project strategy
sessions than simply cursory project
reviews on safety and paperwork
policies. In essence, the trend is to
ensure the trades start and finish
strong.
As mentioned, the war for talent
remains hot and heavy. Construction
still lags as a “desired career” and the
apparent free-for-all for managers,
superintendents, foremen and skilled
tradespeople has begun once again.
D E C E M B E R
2 0 1 4
9
The dollars being thrown around for
bodies to fill the organizational chart
is ludicrous. Have we learned nothing
since the previous boom? Best-ofclass firms have not only remained
vigilant to their growth goals, but
they have also remained loyal to
their people. For instance, attracting
people is not enough. Retention
through career pathing, training,
personnel development, structured
incentive compensation, long-term
deferred compensation are just pieces
of the recipe that the best are using.
If one manager leaves, that is to be
expected, as there will always be
attrition. However, massive flight is
normally not a compensation issue
but rather a deeper symptom of a sick
organization.
Execution in 2015
While construction productivity has
elevated in the minds of firms across
the country, the question remains on
how to sustain efficiency gains now
and for that next inevitable economic
storm that is always looming in our
business cycles. For instance, it is
easier to ensure pre-job planning is
done when there is only one project
starting in the month. What happens
when there are 10 project starts? 20?
The natural inclination is to abandon
the process because there is a
shortage of time. Consider the fact
that so many firms are now focusing
on productivity. Now consider the
opportunity that was lost due to
mismanagement when times were
not as bleak. Best-of-class firms
are refocusing and reestablishing
the foundation now and enacting
measures to ensure project execution
does not subside as the tempest does.
As a principal with FMI, Tampa,
Fla., Schoppman specializes in the
areas of productivity and project
management. He also leads FMI’s
project management consulting
practice. Schoppman will present
four education modules at SUBExcel
2015 in Seattle. Prior to joining FMI,
Schoppman served as a senior project
manager for a general contracting
firm in central Florida. He has
completed complex and sophisticated
construction projects in the medical,
pharmaceutical, office, heavy civil,
industrial, manufacturing, and multifamily markets. He has also worked as
a construction manager and managed
direct labor. Furthermore, Schoppman
has expertise in numerous contract
delivery methods as well as
knowledge of many geographical
markets. He can be reached at (813)
636-1259 or gschoppman@fminet.
com.
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ROOFING • SIDING • TRIM • DECKING • RAILING • FENCE
GYPSUM • CEILINGS • INSULATION
Insulation
10
D E C E M B E R
2 0 1 4 T H E
C O N T R A C T O R ’ S
C O M P A S S
Feature
Transform Construction Projects with Integrated
Energy Solutions
by Mark Drury
The time has come for professionals
in the construction industry to broaden
that meaning of “green” when they
hear about “green” building projects.
The tendency is to just first think about
energy efficiency, which may be all
well and good, but it’s an opportunity
to tap into a new revenue stream in
construction, while positioning your
construction business as an authority
and leader of an initiative that’s
transforming the construction space.
In an age of increasing energy costs
coupled with greater awareness of the
need to conserve energy resources,
more and more building contractors
are eager to do the right thing when it
comes to identifying and remedying
energy inefficiencies in commercial
projects. But what if, by taking a holistic
approach to building design and
construction, construction executives
could transform traditional construction
projects into more cost-effective
energy-efficiency projects that improve
the bottom line? It’s a big new market
opportunity that is not to be missed.
The integrated energy solution
approach is a process that can tap
unprecedented energy efficiency and
savings from old and new buildings
alike because it takes a holistic
approach that examines all aspects of
building design, mechanical systems
and controls (including HVAC, lighting
and security).
It is the opposite of the traditional
piecemeal or “silo” method of providing
engineering, construction, controls
and maintenance/service. Instead, the
integrated energy solutions approach
is geared to a unified suite of services.
Much like the conductor of a symphony
orchestra, the integrated system
ensures that all “instruments” in the
building’s mechanical and electrical
systems are working harmoniously.
By taking this holistic view of energy
management and efficiency, integrated
energy solutions can make the entire
process more efficient and effective in:
T H E
C O N T R A C T O R ’ S
•Providing new energy and water
efficient buildings, which offer
the appeal of higher rents, lower
vacancy rates and greater tenant
satisfaction.
•Transforming existing “brown”
buildings, where there are
immediate opportunities to
upgrade mechanical systems for a
demonstrated return on investment.
If a building has not been properly
maintained and serviced, an
integrated energy solutions system
can deliver an immediate costsaving impact. In addition, with
an integrated system in place,
building management will have the
capability to integrate individual
system controls into a full-fledged
building automation system, as
well as establish a planned systems
maintenance program.
Ultimately, integration is the key to
integrated energy solutions operational
success. This requires a carefully
thought out engineering process that
avoids a fragmented or piecemeal
approach. Also, system designers
should avoid proprietary systems and
instead choose open protocol devices
that have the capacity to read systems
and controls produced by a multitude of
manufacturers. All system components
must be able to communicate
instantly on an electronic “handshake”
arrangement.
Interoperability Is Key
Integrated energy solutions can
play a critical role at each step in a
building development project: in the
design phase; in the negotiation phase;
at the beginning of construction; at
the midway point to coordinate the
systemic development of controls; or at
completion to ensure interoperability
and develop a planned maintenance
program. Interoperability, in fact, is a
key element of an effective integrated
energy solutions implementation —
making sure different systems and
C O M P A S S devices are able to communicate
effectively across different software
protocols and languages. Even in
today’s most advanced buildings that
are equipped with digital HVAC and
lighting controls, these systems may
not be integrated so that a building
owner or property manager has a single
dashboard to see where energy usage
is highest or where performance of
individual components may be lagging.
An integrated system, though, provides
both a wide-angle operational view
of all components from 35,000 feet
while at the same time allowing facility
managers to drill down and see the
individual “blades of grass.”
Customizing Your Energy
Solution
To realize the full measure of energy
and cost efficiency each energy
solutions project should be custom
programmed and individually tailored
to each facility.
One of the critical features of an
integrated system is the capability to
record building analytics and trends,
from which baseline performance
levels can be established. Once those
baselines are in place, acceptable
variances can be established and
alarm features engaged so that system
managers will be able to monitor the
system at-a-glance to see bumps or
drops in energy usage.
A state-of-the art IES system
integrates individual building system
communications to provide a userfriendly control interface customized
for each facility. This dashboard
should include floor plan layouts with
temperature overlays that detect warm
or cold spots in the building, enabling
us to coordinate the setting of
equipment operating constraints and
utilize occupancy zones to maximize
performance.
(continued on page 18)
D E C E M B E R
2 0 1 4
11
Feature
Employee Fleet Accidents: One of the Most Overlooked and
Costly Risks on Construction Sites
by Fred Myatt
General contractors’ and
subcontractors’ constant exposure to
the most dangerous hazards — from
erecting structures dozens of stories
up in the air to building bridges over
large bodies of water — force worker
safety to be top of mind.
However, when it comes to daily
tasks that seem more routine than
dangerous — like driving motor
vehicles — worker safety and liability
can be unintentionally overlooked. In
fact, fleet and motor vehicle accidents
are one of the most frequent and
costly hazards on or near
construction
projects,
IN THIS
ARTICLE . . .
�
�
�
12
Fleet and motor vehicle
accidents are one of
most frequent and costly
hazards.
Basic day-to-day driving
can put employees and
the company’s bottom line
at higher risk.
Both workers’
compensation and
automobile liability
coverages may be
invoked.
D E C E M B E R
2 0 1 4 according to Zurich claims data. But
the construction industry is not alone:
40 percent of employee fatalities on
the job across all industries were due
to vehicle accidents — more than any
other single cause, according to 2013
Bureau of Labor Statistics data.
Further, the injury costs associated
with employee vehicle crashes are
generally three times the cost of
other workplace accidents, which can
add to the overall costs of a project,
according to a 2012 study from the
National Council on Compensation
Insurance Inc., called “The Role
of Traffic Accidents in Workers’
Compensation — An Update.”
So, while a contractor may manage
the risks surrounding the likelihood
of a more severe incident, it’s actually
the day-to-day basic driving of a
pickup truck or small van that can
put employees and the bottom line
at higher risk.
Rules Governing
Employee Driving
Both federal and state
laws govern commercial
vehicle use. The Federal
Motor Carrier Safety
Administration
regulates commercial
motor vehicles that
cross state borders. In
addition, most states
have a Department
of Transportation
that establishes
transportation rules
within that jurisdiction.
FMCSA and DOTs
have similar rules,
such as limiting the
number of hours that
T H E
a commercial driver can operate a
vehicle or requiring biennial medical
examinations by a Commercial Driver
Medical Examiner, among other
safety measures.
And while contractors are
often aware of the rules, they are
sometimes unaware the rules apply
to them or their business. Some
contractors mistakenly think that only
articulated or dump trucks are CMVs.
However, merely adding a small
trailer to a light duty pickup truck can
suddenly make a contractor’s drivers
subject to many of the same rules as
professional truck drivers.
For example, if a construction
worker hops behind the wheel of a
crew-cab pickup with a loaded trailer
after finishing a 14-hour construction
shift, he or she might be on the
wrong side of the law for violating the
allowable amount of hours that can
be worked when driving a CMV. Not
only is the driver subject to a citation
and fine, but the contractor may be,
too.
A contractor faces a double
whammy when it comes to a motor
vehicle accident as both workers’
compensation and automobile
liability coverages can be invoked.
For example, an employee injured on
the job in a vehicle — regardless of
the location of the collision — may be
covered by workers’ compensation,
while any other party to the accident
may be covered by the contractor’s
automobile liability coverage.
Separately, plaintiffs can also be
awarded punitive damages against
the contractor for negligent hiring,
negligent entrustment or lack of
adequate safety policies. Punitive
damages are often not covered by
C O N T R A C T O R ’ S
C O M P A S S
insurance, which can add financial
burden to the contractor’s company
and project costs.
Managing Employee
Driving Behavior
Employees can get distracted,
careless or just plain tired when
driving a company-owned vehicle.
These behaviors can impact both
the safety of the employee and
the nearby public, as well as the
profitability of the project or the
contractor’s financial stability in the
event of an accident or injuries.
This ongoing, daily exposure to
fleet accidents brings a new level
of complexity to contractor safety
and risk management programs. It
requires an integrated approach to
developing a fleet safety program
that addresses driver knowledge and
behavior with the various types of
company vehicles.
The first step in developing a
fleet safety program is to analyze
company claims data to identify clear
and specific loss trends. Accurate
identification of loss trends to
determine frequency and severity is
one key factor in helping manage and
control these loss costs. Such claims
analyses must include both workers’
compensation injuries and auto
accidents to provide a full picture of
the loss costs for the contractor.
The second step and primary focus
of a fleet safety program should be on
the drivers themselves: Who is driving
the vehicle? Do they have the right
qualifications? Was a background
check performed on them? Are they
unknowingly falling under CMV
regulations?
Exposures for drivers can be
proactively and effectively managed
through a technology-based fleet
T H E
C O N T R A C T O R ’ S
safety program, one that provides
online driver assessments and
training with management reporting
and supervision. A robust fleet
management program should include
these online tools:
•Assessment of drivers’ attitudes,
behaviors and knowledge, in
order to benchmark their driving
competence and to identify highrisk drivers who might require
additional training.
•A training program that ensures
that all drivers have a basic
knowledge of defensive driving
and reinforces the importance
of driver attitude, behavior and
hazard recognition skills for safer
driving.
•Training records for risk managers
to monitor the progress toward
creating a safety culture to reduce
accidents.
•Thirdly, the vehicle itself should
be part of a safety program.
The use of telematics in vehicles
tracks driver behavior as well as
placement on the road. Telematics
can give your company the
powerful data it needs to help
minimize fleet accidents. Among
other benefits, telematics in a fleet
safety program can help:
•Optimize vehicle journey
planning and deployment.
•Improve the contractor’s ability
to manage driver behavior and
safety on the road by identifying
and addressing risky behaviors.
•Improve employees’ driving
skills and knowledge.
Heavy vehicle usage will always
play a role on construction sites.
This means that auto exposures
for contractors are a chronic risk to
manage. But with the right claims
data analysis, online assessment and
C O M P A S S training, and in-vehicle telematics,
an effective and efficient fleet safety
program can be created that will help
protect your employees, drivers, the
public and ultimately, your bottom
line.
Fred Myatt is the Commercial
Auto Segment Director for Zurich
Risk Engineering, Schaumburg, Ill.
He can be reached at (919) 280-5085
or [email protected].
The information in this publication
was compiled from sources believed
to be reliable for informational
purposes only. All sample policies
and procedures herein should serve
as a guideline, which you can use
to create your own policies and
procedures. We trust that you will
customize these samples to reflect
your own operations and believe that
these samples may serve as a helpful
platform for this endeavor. Any and
all information contained herein
is not intended to constitute legal
advice and accordingly, you should
consult with your own attorneys
when developing programs and
policies. We do not guarantee the
accuracy of this information or any
results and further assume no liability
in connection with this publication
and sample policies and procedures,
including any information, methods
or safety suggestions contained
herein. Moreover, Zurich reminds
you that this cannot be assumed
to contain every acceptable safety
and compliance procedure or that
additional procedures might not be
appropriate under the circumstances.
The subject matter of this publication
is not tied to any specific insurance
product nor will adopting these
policies and procedures ensure
coverage under any insurance policy.
D E C E M B E R
2 0 1 4
13
Feature
Increasing Fuel Efficiency Through Smart Fleet Management
by Jonathan Durkee
In fleetdriven industries
like construction, it
is crucial to control
costs associated
with crews and
vehicles in the
field. Fuel spend
is a leading factor
impacting a contractor’s
bottom line, and costs
can add up quickly,
regardless of fleet size.
It’s no surprise that wasted
fuel is one of the most common
issues for contractors — and it can be
difficult to control if businesses don’t
have proper tools in place.
To combat this financial strain,
many business owners are turning to
fleet management solutions, which
provide a full picture of vehicle and
driver activity in near-real time,
around the clock. These solutions
give contractors the tools and data
support to better manage their fleets,
increase productivity and efficiency
of remote workforces, enhance
customer service and ensure driver
safety, among other benefits.
With better fleet management,
business owners can also identify
cost-saving opportunities to run a
stronger, smarter mobile workforce.
This means cutting down on driving
time and recognizing behavior that
wastes fuel.
Streamlined Routing
One of the simplest ways to
minimize fuel usage is to reduce
time spent on the road through
more efficient routing to job sites
and streamlined crew dispatching.
14
D E C E M B E R
2 0 1 4 With a fleet management
system, it is possible for
contractors to gain a full
view of vehicle activity in near-real
time, enabling them to clearly and
quickly identify and correct inefficient
routing or to dispatch the nearest
crew to a job site. This reduction in
road-time can significantly impact fuel
costs. In Fleetmatics’ recent FleetBeat
report, a data-driven industry
benchmark report, Fleetmatics found
that, of those it surveyed, businesses
using fleet management systems
realized an average savings of $34
per vehicle per month on fuel costs,
due to reduced driving time alone.
The savings jumped to $45 per month
per vehicle when taking into account
factors like reduced idling.
Reduced Idling
While it’s easy to see how time on
the road impacts fuel costs, many
businesses may not realize just
how much fuel excessive idling can
cost. According to the Ford Motor
Company, every hour a vehicle is left
idling equates to 25 miles of driving.
So, those few minutes a crew leaves
its truck running at each job site can
add up quickly to put a big dent in the
gas tank, and a business’ fuel spend,
without enhancing crew productivity.
Fortunately, excessive idling is easy
to correct. Fleet management systems
enable business owners to monitor
for this issue, identify excessive idlers
and notify them to turn off the engine.
According to the FleetBeat report,
after installing a fleet management
system, light contractors surveyed
decreased idling by an average of 23
percent. This represents a decrease
T H E
from 55 idling minutes per vehicle per
day to 42 minutes per vehicle per day.
Eliminating Fuel-Wasting
Behavior
How crews drive fleet vehicles
also significantly impacts fuel
efficiency. Factors like harsh braking
and excessive speeding can reduce
efficiency and lead to increased fuel
costs. Fleet management technology
allows business owners to better track
this fuel wasting behavior, correct it,
and alert fleet managers or business
owners via text message when unsafe
behavior is recorded. Driver-centric
metrics can also paint a picture of this
behavior, even if drivers use different
vehicles throughout the course of a
week.
By optimizing vehicles with fleet
management systems, contractors
gain the insight needed to ensure
they get the most out of company
vehicles and drivers, while squeezing
the most out of their fuel spend. This
produces significant savings that
often pay for the systems themselves
in short order, and helps position
contracting businesses for sustained
growth.
Jonathan Durkee is vice president
of product management for
Fleetmatics, a leading global provider
of fleet management solutions for
small- and medium-sized businesses.
Prior to his current role, Durkee
served as VP of sales and product
management for enterprise GPS
fleet management software company
SageQuest, which was acquired by
Fleetmatics in 2010. To learn more,
visit www.fleetmatics.com.
C O N T R A C T O R ’ S
C O M P A S S
Feature
10 Things to Remember When Your Work Is Delayed
by Donald Gregory, Esq.
As the construction industry
slowly recovers momentum and
sales increase, there are increasing
reports of labor shortages that are
adversely affecting production
and schedule. Many later finishing
trades complain that their work is
being delayed, compressed and/or
accelerated as a result. As anyone
familiar with construction knows,
“time is money.” Losses incurred as a
result by blameless “follow on” trades
toward the end of a delayed job must
be absorbed or passed on to those
responsible.
Those delayed by predecessor
impacts are advised to keep these
Top 10 suggestions in mind to protect
their right to additional time and/or
money:
1. Do not sign a “no damage for
delay” contract clause.
Many contracts contain “no
damage for delay” clauses, which
state that one’s sole remedy in the
event of a delay is a time extension.
While there are legal exceptions
in most jurisdictions, and some
states like Ohio make such clauses
unenforceable, it is best to avoid them
in the first place.
2. Do provide timely notice of your
claim.
Every contract requires timely
notice of change orders and claims,
and many provide that a failure to do
so means that an otherwise legitimate
claim is waived. Provide written notice
— early and often.
3. Do provide timely documentation
of your claim.
Many contracts provide that once
a claim is initially made, it must
be documented (and sometimes
certified) within a certain number of
T H E
C O N T R A C T O R ’ S
days after first notice. A failure to do
so might undermine the claim.
4. Do request a time extension.
Sometimes contractors do not
request a time extension because
they know that it will not be granted.
But a time extension should always
be requested in the event of project
delay. A failure to do so might
undermine your request for additional
money due to acceleration.
5. Do not sign off on a flawed
schedule.
Sometimes owners refuse to
pay draws until contractors sign
unworkable schedules to which
they do not agree. But regardless
of the pressure applied, contractors
should not “sign off” on unworkable
schedules. At a minimum, reserve
your rights and make a notation that
your signature on the schedule is not
your approval of it, or a waiver of
your damages.
6. Do not sign an overly broad lien
waiver.
Many lien waivers are now lengthy
and waive more than lien rights for
a particular draw. Some purport
to waive all rights to additional
compensation in the form of change
orders or claims on the project. Do
not waive rights for work which is still
being debated or disputed.
7. Do not sign an overly broad change
order.
A proper change order will purport
only to waive all costs associated with
that discrete “change in the work”
that is the subject of the change order.
However, some change orders try to
waive all direct and indirect damages
associated with “the project” through
a particular date. Be careful not to
sign a change order with overly broad
form release language.
C O M P A S S 8. Do try to accurately track your
costs.
All requests for additional time
and money will be criticized (by
those being asked to pay) as being
inadequately documented. But the
better you contemporaneously
document and track your costs, the
more you can minimize the criticism
of your damages calculations,
particularly with respect to labor
inefficiencies.
9. Do argue waiver if the contract has
not been strictly followed.
Many provisions of thick
construction contracts are
disregarded as a practical matter
by the parties during the complex
construction process. Contractors
that may not have done everything
perfectly may be relieved of harsh
results by arguing that an onerous
clause was waived by an owner
who also failed to comply with the
contract.
10. Do know your deadlines for taking
legal action.
Almost all claims will expire
if timely action is not taken in
accordance with the contract and
any applicable statute of limitations.
Do not let project inertia or
prolonged settlement discussions or
negotiations delay legal action until it
is too late.
If you remember these Top 10 dos
and don’ts, the next time you are
adversely impacted by schedule
delays, you will be in a much better
position to protect your interests.
Donald Gregory, Esq., is a director
and chair of the construction practice
area for Kegler, Brown, Hill & Ritter,
Columbus, Ohio, ASA’s legal counsel.
Gregory can be reached at (614) 4625400 or [email protected].
D E C E M B E R
2 0 1 4
15
Legally Speaking
What to Look for in Upcoming Regulations
from an HR Perspective
by Jamie Hasty
With the mid-term elections behind
us and 2014 winding down, there are
several issues that we expect to impact
human resources in 2015 and beyond.
Although each new year is always
met with some uncertainty, change is
inevitable and we must prepare as best
we can to stay ahead of it. Some key
topics to keep an eye out for in 2015
include:
EEOC Focus
In 2014 we continued to see a strong
focus on disability issues by the EEOC.
Nearly 34 percent of all EEOC filings
for 2014 were based on disabilityrelated claims. Additionally, the EEOC
continued its battle against employers
over the legality of using credit and
criminal background checks to make
hiring and employment decisions.
SESCO Management Consulting
fully expects both of these trends to
continue well into 2015 and beyond.
It remains critical that employers
utilize an interactive process when
making employment determinations
related to an employee’s disability. All
too often employers simply believe
that when an employee has exhausted
all of their FMLA entitlement that
termination is warranted. The EEOC
has been very clear in its guidance that
an extension of approved leave can be
a reasonable accommodation when
the facts of the situation dictate.
The “ban-the-box” initiative
continues and recently the District of
Columbia, Illinois, and New Jersey
joined 66 cities and counties and 11
states to pass “ban-the-box” laws,
preventing employers from asking
about prior criminal history on job
applications. Ban-the-box refers to the
check box on employment applications
asking whether the candidate has ever
16
D E C E M B E R
2 0 1 4 been convicted of a crime. Ban-the-box
laws require hiring managers to put
off asking about a candidate’s criminal
history until after an interview has
been conducted or a provisional job
offer has been extended. Employers
in areas where ban-the-box has been
passed should audit their employment
applications to ensure that they are in
compliance with this piece of growing
legislation.
Same-sex Marriage
On Oct. 6, 2014, the U.S. Supreme
Court denied review of five cases
seeking the freedom for same sex
marriage, which left the earlier
decisions in three federal circuit
courts effective immediately. The
states of Virginia, Indiana, Oklahoma,
Wisconsin, and Utah began issuing
marriage licenses for same sex
couples almost immediately. The
addition of these five states now
brings the total to 24 states and the
District of Columbia that recognize
same-sex marriage. There are six
additional states that fall within the
same federal courts jurisdiction, which
will likely follow suit. Those states
include North Carolina and South
Carolina, West Virginia, Wyoming,
Kansas, and Colorado. As employers
it is prudent to begin preparations to
deal with potential employee changes
to ensure compliance with the recent
and forthcoming rulings. The following
are points to consider when evaluating
your current employment practices:
•Coordinate with your benefit
plan providers and third party
administrators to make any
required adjustments to summary
plan descriptions and other benefit
plan documents.
T H E
•Evaluate all existing plan
documents and the way in which
they define terms such as spouse
and domestic partner.
•Apply the same employment and
benefit policies currently in effect
for opposite-sex couples to samesex couples.
Affordable Care Act
Beginning in 2015, those employers
with 100 or more full-time or full-time
equivalent employees who do not
offer affordable health insurance that
provides minimum value to their fulltime employees (and dependents) may
be required to pay an assessment if at
least one of their full-time employees
is certified to receive a premium
tax credit in the individual Health
Insurance Marketplace. Under these
rules, a full-time employee is one who
is employed an average of at least 30
hours per week. For employers with
50 to 99 full-time/full-time equivalent
employees, these rules will not apply
until 2016, provided that employers
of this size meet certain certification
requirements. Also beginning in 2015,
the Affordable Care Act provides for
information reporting by employers
with 50 or more full-time or full-time
equivalent employees regarding the
health coverage they offer to their
full-time employees (known as Section
6056 rules). New information reporting
by issuers, self-insuring employers,
and other parties that provide health
coverage also take effect in 2015
(Section 6055 rules). The first of these
reports must be filed in first quarter
2016. The draft version of the forms to
be utilized for both the 6056 and 6055
filings were released in August 2014,
and we expect the final versions of
the forms to be released by mid-year
C O N T R A C T O R ’ S
C O M P A S S
2015. Clearly 2015 will be difficult for
many large employers attempting
to navigate the new challenges of
the ACA waters. Employers should
work closely with their brokers,
plan providers, and third-party
administrators to ensure compliance
with this very difficult and continually
evolving law.
FLSA: Wage and Hour
Proposed Rules
Most prominent among the Wage
and Hour’s planned regulatory
activities is revising the Fair Labor
Standards Act rules defining
the exemptions for executive,
administrative, professional, outside
sales, and computer employees.
The division anticipated issuing the
proposed rules changes to the FLSA
in mid-November 2014. All indicators
now point toward the proposed rules
being published by the end of the first
quarter 2015. The likely changes and
their corresponding effective dates are
difficult to predict, but we expect the
minimum salary threshold level for
a white-collar exemption to increase
from the current $455 per week level.
Some experts have indicated that it
could be raised to a level well north
of $800 per week. The DOL also might
be considering adopting a standard
similar to California’s requirement
that an exempt employee be primarily
engaged in exempt duties at least 50
percent of their work time.
Assuming the proposed rule
changes are released in 2015, it would
still be some time before any final
changes are enacted. Here’s a timeline
of what would still have to happen
after the DOL issues the proposed
changes:
•a public comment period would
have to be held, which would
typically last at least 30 days;
•the DOL would have to take time to
consider the public comments; and
•a final draft of the regulations
would need to be written and
approved by the Office of
Management and Budget’s Office
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When it comes to managing your business, the
Foundation of ASA is your partner in education. View
and listen to FASA’s on-demand videos at an individual
workstation or in a conference room for group training.
Your order includes access to the on-demand video any
time, and as many times as you’d like!
This is just one of the on-demand videos
available through the FASA Contractors’
Knowledge Depot to meet your business
management training needs.
of Information and Regulatory
Affairs, which could take up to 120
days once the final draft is issued
but typically takes about two
months.
Even if things happen quickly, it’s
unlikely the new regulations would be
in place before 2016. When the feds
last tinkered with the FLSA overtime
rules, it took nearly two years for
the changes to take effect, which
happened in 2004.
SESCO will continue to monitor
developments in all areas of Human
Resources Management for 2015, and
keep ASA members informed.
Jamie Hasty is a vice president with
SESCO Management Consultants,
Bristol, Tenn., and Richmond, Va. ASA
members receive complimentary
human resources services provided
by SESCO Management Consultants,
including free telephone and email
consulting. Hasty can be reached at
(423) 764-4127 or Jaimie@sescomgt.
com.
Contractors’
Knowledge
Network
“Common Practices and Effectiveness of
Incentive Compensation” (Item #8074)
Does your firm’s incentive plan support your strategic
objectives? In the video-on-demand, “Common Practices
and Effectiveness of Incentive Compensation” (Item
#8074), presenter Radek Knesl, FMI, Tampa, Fla., examines
the seven critical issues that are common practices in the
construction industry that need to be addressed to improve
the effectiveness of your incentive program. He explains why
paying discretionary bonuses are not effective for moving
your company forward and how total rewards can attract and
retain the best talent and increase your return on investment.
Price: $65 Members/$95 Nonmembers
Order online at www.contractorsknowledgedept.com
or call 1-888-374-3133
T H E
C O N T R A C T O R ’ S
C O M P A S S D E C E M B E R
2 0 1 4
17
ASA/FASA Calendar
December 2014
March 2015
12 - Deadline for Applications for
2014 Excellence in Ethics Awards
26-29 - SUBExcel 2015 in
Seattle, WA
January 2015
April 2015
13 - Webinar: Negotiating
Retainage
14 - Webinar: Non-Negotiators’
Strategies for Negotiating
Outstanding Results
Coming Up . . .
10 - Webinar: Mechanic’s Liens:
Protect and Collect
Contact information for all ASA and FASA events/programs:
www.asaonline.com
[email protected]
(continued from page 11)
Scalability is another IES advantage. When communal access
is provided via LAN, WAN or Internet connections, an IES system
can operate a single floor in a building, an entire building or even a
series of buildings.
IES - The Bottom Line
As we move forward in the energy-challenged commercial
building industry, contractors and owners of constructionrelated businesses need to become part of the “green” dialogue
with building owners. By getting up to speed on the key design
elements of Integrated Energy Solutions, construction executives
can position themselves to provide answers to the questions more
and more owners are asking about how to make their buildings
more energy efficient.
Armed with Integrated Energy Solutions, contractors and
owners can move out of the traditional mindset of budgeting for a
construction project into a new “green” mindset of budgeting for
building energy efficiency. Not only is IES the right thing to do, but
in the long run it’s the more economical way to go.
Mark Drury is the vice president of Business Development at
Shapiro & Duncan, Inc., the “Mechanical Solutions Provider of
Choice” for complex commercial, government and institutional
design-build projects throughout the Washington, D.C., metro area.
A third-generation family business based in Rockville, Md., Shapiro
& Duncan continues a 38-year track record of dependability and
innovation that has consistently enabled the company to deliver
high value and efficient mechanical infrastructure to its customers.
D E C E M B E R
2 0 1 4 Theme:
Getting Paid
•Tips for Suspending Work
for Non-Payment without
Getting Fired
•Reducing Credit Risk and
Default Receivables Through
Management of Lien & Bond
Claim Compliance
Integrated Energy Solutions
18
THE
February 2015
in the
January 2015
Issue of ASA’s
T H E
•Getting Paid and Ensuring
Cash Remains King
•What Subcontractors Need
to Know About ‘Pay-WhenPaid’ and ‘Pay-If-Paid’
Clauses
•Legally Speaking: Contingent
Payment Clauses —
Enforceable? Negotiable?
Worth the Risk?
Look for your issue
in January.
Past Issues:
Access online at
www.contractors
knowledgedepot.com
C O N T R A C T O R ’ S
C O M P A S S
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