Ikes' Newsletter July 24, 2020

Executive Director's Report

What is Payment Pain? Click here for an article that you should read.  Every now and then someone comes along who knows how to cogently express the pain subcontractors go through in order to get paid. This public project report will resonate with all members. 

SIE was on July 23 – Although I cannot reveal what was discussed at a Subcontractors’ Information Exchange, suffice it to say that payments to subcontractors are still from 45 to 60 days, except DC Government who is paying a little faster. There are more bidders on current jobs, but no new GCs are being seen in our area.  What are you seeing?  Your comments are welcome. I hope members will be present for the next SIE.  

Are You Still Busy? Everyone reports that there is plenty of work to bid and in progress; but construction starts still have dropped 35 percent for this year as compared to last year.  In May non-residential dropped 54 percent, but residential was up 14 percent. Dodge Data & Analytics reports this on the metro statistical area of Washington-Arlington-Alexandria which includes all the counties in the DMV. 

Material Prices Going Up – Construction Dive reports material prices are going up primarily because of energy cost and the “soaring cost of lumber”.  Lumber mills closed due to stay-at- home orders and social distancing, causing the increase. 

Have YOU paid your Dues?  We are pleased to report that most members have paid their dues for this year. A few are still outstanding, but we expect to continue growing in strength to allow subcontractors their rightful place as we move into an uncertain 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 if you want to discuss your membership, just email me at [email protected] and we will be in touch. 

Is Bonding An Issue for You?  A few members have been seeking to increase their bonding capacity.  Tom Bailey provides a succinct article on how to increase your bonding capacity even if you lack the cash collateral to do so.  Click here for the article.

How Much Time Do You Spend on Subcontracts? A special task force of the ASAMW Board is seeking ways to give you more time to plan jobs and less time pouring through subcontracts. Some members have a person dedicated to reviewing each subcontract agreement. Step one is asking each of ASAMW’s General Contractor Partners to highlight the changes to their Master Subcontract Agreements (MSA) in each job. Would this be helpful to you?  Do you have another suggestion for dealing with subcontracts?  How about one of the standardized subcontracts like AIA or ConcensusDocs? We need your input.    

Welcome New Members

We are proud to welcome Branch Builds LLCis our latest General Contractor Partner.  George Nash and his team in this region join 14 of the areas best general contractors. 

Advocacy Issues

Maryland:  Please reply if you are having any issues with state construction projects.  This includes payment, scheduling, etc.  We can help resolve your issues with the State of Maryland.  The session will open Jan. 21st and we expect to promote legislation on retainage and payments to subcontractors.  In the meantime, we continue to seek payment transparency in the Comptroller’s department. 

DC: On July 22nd, ASA and ACE met with the Paul Blackman, who leads the Capital Construction Services Division of the Dept of General Services in DC.  He expressed the department’s interest in paying subcontractors more promptly.  He indicated the budget challenges are not expected to impact the millions of DGS projects coming in the next two years.  You may receive his presentation deck upon request. We need a specific case in which you were forced to pay for damages on a job in DC that was not your fault. We also are seeking reports of your employees utilizing the Universal Paid Leave account that was opened on July 1st.  Please email me at [email protected] if you had someone apply.  I have a few questions.

Virginia:  A copy of the final temporary standards to cover cases involving COVID-19 are available by clicking on this link.  Virginia standards are different from OSHA, so be aware. 

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