Ike's Newsletter, July 10, 2020

Executive Director's Report

Procore: Are They Being Fair? Members were notified by both ASAMW and ABC of a problem with Procore’s billing in a message last week.  It does not appear that their practices are changing according to some members.  The new billing method could result in a company paying the required percentage on work already completed and then paying again.  If you use Procore, please check with your accounting staff to see if this is true in your case.  We would like to build a case for all subcontractors and would appreciate any information you have. Google reports, “Procore Technologies Inc., a construction software company that filed in February for a U.S. initial public offering, postponed those plans and instead completed a private funding round, according to people familiar with the matter.”   

Productivity Impacted 20% by COVID 19 – You expected it and now NECA and its foundation have proven in the electrical industry that “Early measurements of the impact of this pandemic suggest that construction productivity has been impacted nearly 20%.”  This has a major impact on profitability and contractors should seek “equitable adjustments that adequately compensate them for the impact.”  For instance, 7% of labor hours is lost on pandemic mitigation activities.  Additionally there is a 12.4% impact on “Vertical Construction productivity.    

SIE on Thursday, July 23  Are you losing money on your projects?  Why?  The Members’ Only Subcontractor Information Exchange (SIE) is the best way to discuss your concerns in a confidential setting on Zoom.  Other subcontractors may have found a solution.  Please email [email protected] if you'd like to join the meeting. Join the top subcontractors in the DMV on fruitful discussions about payment, risk avoidance, contract terms, workforce/HR issues and many more.  

Have YOU paid your Dues?  We are at a crossroads in the construction industry.  Your participation in needed change will determine if Subcontractors have their rightful place at the table in determining our future.  If you believe in what we are doing, I hope you have already paid your dues for the coming year.  If you are not sure if you have paid or want to discuss your membership, just email me at [email protected] and we will be in touch.  

ASAMW Has A Brand New Website   We are happy to announce that ASAMW has a new website! This website will help to keep our membership connected and give you access to resources you need to succeed. Pardon our dust, we’re still under construction, but we invite you to come see what we’ve started. Members will receive an email shortly; this will contain your login credentials, as well as information on how to access the members-only section. In the meantime, please contact Patti Coen with any questions.

Warning: What Does Your Subcontract Say About COVID19? A member warns of subcontract clauses that shift the risk and liability of any pandemic related delay or impact of supplying material, providing manpower and finishing on time onto the subcontractor even if the GC is allowed relief in the prime contract.  Be sure to read your subcontract carefully and review the owner’s contract with the GC. 

MEMBER UPDATES


CohnReznick
 will assist member companies with navigating the PPP loan forgiveness process and calculation, as well as agreed-upon procedures (AUP) engagements.” 

We are proud to add Branch Builds, Inc. to our General Contractor Partner group.  Located in Herndon, with its home office in Roanoke, Branch Builds promises to help ASA of Metro Washington achieve its mission of Better Construction through Fair Construction.

 
ADVOCACY ISSUES
Maryland: We again hit a brick wall on transparency in Maryland.  After a promising note that the Attorney General’s office had no issues with providing subcontractors a listing of payments to subcontractors on MDOT projects, there was a follow-up meeting in which procurement staff were not going to provide the information.   Karen Barbour with the Barbour Group has been very active in pursuing this needed change.
 
DC: On July 22nd, ASA and ACE will be meeting with the Capital Construction Services Division of the Dept of General Services in DC.  Please reply with any questions and/or comments you have about working on DGS projects.  

Virginia:  no report
 
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