Up Front Payment for YOUR Projects?
Tutor Perini is getting upfront payments for billion-dollar projects. Is this a trend that could flow down to subcontractors? This Construction Dive article quotes CEO Ron Tutor saying, “We demand and get mobilization payments…8% to 10% upfront…the day we set foot on the job.” “We tell them, we don’t finance our work, they do.”
Protect your Company When an Employee Leaves
A recent FTC ruling that would ban non-compete clauses has not taken effect and there are numerous lawsuits fighting it. If this becomes effective in August, you will have to determine how to address your employees who decide to go into business for themselves. How will you protect your company? This article by Lerch Early and this one, by Smith Currie, offer more explanation.
Fairness in Hiring/Bidding
This opinion piece in Construction Dive forces the reader to think about using AI to do a better job of hiring, but it also allows us to look at fairness in bidding. Biases and “who you know” is taken out of both processes using an AI model that looks at data and not other values.
ASAMW Annual Meeting is May 29th
The Annual Meeting of ASA of Metro Washington will begin at 11 am on May 29, 2024 at Patsy’s American, 8051 Leesburg Pike in Vienna. Click here to register.
Project Manager Workshop graduates will be recognized, officers and board members will be elected and members will be recognized for certain membership milestones. Those to be recognized include:
5-Year Member Recognition: Abbey Commercial Flooring, AvalonBay Communities, Inc., CFP, Gilbane, L & R Floors of Washington, Inc., Total Shading Solutions
8-Year Member Recognition: Canam Steel Corporation, Manders Companies
10-Year Member Recognition: Annandale Balancing Company, L.F. Jennings, Inc.
21-Year Member Recognition: Commercial Energy Systems, Inc., Environmental Waste Specialists, F.B. Harding, Inc., Kynoch Environmental Management, Inc.
25-Year Member Recognition: Acme Mechanical Contractors, Southern Insulation, Inc.
50-Year Member Recognition: Superior Iron Works, Inc.
60-Year Member Recognition: John H. Hampshire, Inc., Schnabel Foundation Company
Gilbane Meeting to Discuss Expectations
The ASAMW Board representatives most recently met with representatives of Gilbane Construction to discuss the GC Partner Expectations. Here is what they had to say:
- Gilbane will continue to strive to acknowledge and appreciate each team member’s contribution. A thank you can go a long way.
- Gilbane will strive to demonstrate effective communication by being accessible, transparent, and listening.
- While at times it is important to communicate in writing, sometimes a phone call or a face-to-face meeting can go a long way. Gilbane will continue to strive to mentor our less experienced team members and encourage them to verbally communicate more often.
- Gilbane requests that if our trade partners and vendors have an issue that it is brought to our attention in a timely manner. Collectively everyone is coordinating a lot of work, and the sooner an issue is brought up, the sooner we will have an opportunity as a team to implement the best solution possible.
Some additional ideas came out of that meeting, such as:
- Chiller and Electrical equipment are being bought up by the data centers in the area, and what was available when you bid the job might not be available now.
- The EPA has new federal criteria that replaces R410A with R454B. Maryland adopted the new refrigerant requirement for chillers in January 2024, however the federal mandate for most of the rest of the country will be adopted January 2025. Make sure your manufacturer sends the right refrigerant (R454B).
- Continued supply chain shortages causing delays and potential price increases are causing everyone headaches. It might be reasonable to ask the GC to request the owner to pay a deposit for material and equipment.
- Most do not realize that retainage in Maryland is limited to Five Percent. Many subcontracts still include 10%.
Prepare for Industry Event to Address Scheduling and Finishing Trades
The ASAMW Board has been discussing the major issues facing them so that we can bring the most valuable discussions in front of our construction partners that will positively impact your projects. They agree that scheduling is an issue that perplexes even the best companies.
What we can do to improve scheduling for all the parties will be discussed on Sept. 24th at the Bethesda North Marriott. Additionally, Finishing Contractors are particularly impacted by scheduling changes at the end of the project for which they do not get compensated. What can we do? Let’s get together to discuss strategies to accomplish fairness. Click here for more information and to register.
MEMBER UPDATES
Orndorff & Spaid is celebrating 70 years in business. ASAMW is proud to have this roofing company as part of our organization since we were founded.
CBM offers this helpful article on money management.
Thompson Greenspon welcomes Nick Ciaccio, MBA, as Director of Client Accounting & Advisory Services.
Smith Currie reminds us to prepare for Build America Buy America as it is being rolled out.
ADVOCACY
DC – We are planning to meet soon with the Director of the Department of Buildings, Brian Hanlon. If you have any issues (permits, CoOs, illegal work, etc.) with his department that you would like us to address, please reply to this email.
Maryland – Please complete this disparity study questionnaire for the State of Maryland. All Subcontractors can explain the seriousness of slow payment by participating in this study.
Virginia – Budget - when will there be one? This is what Governor Youngkin said on Tuesday, “We still have an aspiration to present a budget that meets the multiple objectives of the General Assembly and the governor’s office by next week. And that’s what we’re working towards this week,” said Youngkin. “As I said, we still got work to do. But I’m optimistic.”