Ike's Newsletter August 21, 2020

Executive Director's Report

Where is Construction Heading?  In order to keep you highly informed on the best prognosis for the future, ASAMW and CFMA will have Chief Economist Ken Simonson of AGC share insights into the current economy in the DMV on Sept. 8th.  Click here for more information.   

The June Dodge report indicates that construction starts continue to slide, down 38 percent for the year as compared to the same time last year.  Nonresidential was down 44 percent and residential was down 31 percent in the DMV in June.  

SIE – Word on the Street is Thursday – Reply to this email and you will be registered.  How are your jobs going?  Are you concerned about payment, close out, risk transfer or any other issue that you could discuss with other subs?  This is a confidential discussion that is only for subcontractor and supplier members of ASA of Metro Washington.  Please reply if you wish to attend and we will send the Zoom link.

We need to share real experience with payments.  Virginia State Senator, Chap Petersen said, “An estimated $2 trillion in Federal deficit spending has kept the national economy alive, but that source is drying up.  Eventually "real revenues" must replace deficit spending.”  We know there are challenges ahead and we must keep each other informed on payment issues from all owners, but particularly payments from governmental agencies. 

What Would You Like To Ask Your GC?  The ASA of Metro Washington Board will meet with the sixteen members of its General Contractor Partners in the first week in September. These GCs do a major share of the construction in the DMV.  The issues the ASAMW Board will ask include those on: Contracts, Bidding, Change Orders, Close out, COVID response, Technology and Government.  Just reply to this email if there is a question you would like asked of either the ASAMW Board or the GC Partners.   

Why Don’t GCs Just Terminate an Underperforming Sub?  Members often complain that the GC is not tough enough to terminate a sub that is holding up a job for everyone.  This article written by Smith Currie shows why termination is a difficult move by the GC. The writer, Attorney John Crowley, expresses that helping an underperforming sub might be a better alternative than terminating and finding a replacement.   

How About Golf at Lansdowne on Oct. 5th?  ASAMW held a very successful golf tournament in June and we are looking forward to the next tournament on Oct. 5th.  Click here for more information to sponsor or register.  Act now, this is the first year at Lansdowne and tournaments typically sell out.  

Winery Happy Hour at Paradise Springs  Join the Frontrunners for an opportunity to catch up with members and guests outside for a happy hour at Paradise Springs Winery in Clifton, VA. Visit the ASAMW website to learn more!

Advocacy Issues

Maryland:  Be aware that signing a contract with the Board of Education in Charles County, MD includes a section 17.5.1 No Damages for Delay which places subcontractors and general contractors in a difficult position to obtain needed changes in these times of uncertainty.  The Charles County board refuses to change this clause. 

DC: Council member Robert White expressed a keen interest in hearing how the District can improve the treatment of subcontractors on projects for DC.  If you are interested in attending a virtual meeting with the Council member, please reply to this email.    

Virginia:  Is a GC or Subcontractor holding your payment even though they have been paid?  If so, ask your attorney to check out Virginia Code 43-13,which makes it larceny to withhold funds with intent to defraud. 

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