Ike's Newsletter February 5, 2021

Executive Director's Report

2021 SUBBY REPLACEMENT EVENT  – Still Need Nominations – The fifty-seventh 2021 Subbys will be not be held this year, but plans are being made for a replacement event that will be equally exciting. We will be presenting awards in the following categories:

General Contractor Superintendent of the Year - Submit Your Nominations Here
General Contractor Project Manager of the Year - Submit Your Nominations Here
Great Team - Submit Your Nomination Here
Second Tier Subcontractor, Supplier or Service Provider - Submit Your Nomination Here

Watch your email for further developments on the Subby replacement for 2021 and keep those nominations coming in.

SUBS AND FAIR CONTRACTS – Meeting with Gilbane
ASAMW’s Fair Subcontract Task Force met with Joe Averza and Jay Johnson with Gilbane last Friday to discuss the Subcontract Addendum we have developed. They understand the need for a fair subcontract that protects all parties…Subcontractor, Construction Manager and Owner. Many of the provisions that are advanced in the Subcontract Addendum comport with Gilbane’s standard subcontract. As they continue to work with ASAMW members and other trade partners on projects, including the P3 projects in Prince George’s County, they will continue to keep advancing the goals of fairness and partnership. They are sensitive to the issues that subcontractors have with the items included in the ASAMW Subcontract Addendum of 2021.

Many of you have received a copy of this addendum and, if not, you can still do so by reply to this email. Which of ASAMW’s GC Partners should be next? Reply with your opinion.

TIME TO DECIDE WHO IS A SUBCONTRACTOR AND WHO IS AN EMPLOYEE – Every time you bid you have to determine if your competition is subbing out some of the work to an independent contractor. We all know this happens and the sub-sub often pays less than the required legal wage, taxes and insurance. Make an informed decision. There will be a very informative session with enforcement agents with US DOL Wage and Hour and the DC Attorney General’s office. Learn the right way to use subs and what happens if you do not. Register here for this free, safe discussion of your rights on Feb.11th at 11 am.

RESIDENTIAL THROUGH THE ROOF – Residential starts in December were up 100 percent over December of the previous year according to Dodge. Since non-residential was down 51 percent, this uptick by condos, apartments and single-family homes is needed. Total construction was down 22 percent as compared to 2019. We fared better than other areas, as Virginia had the biggest gains in construction jobs and DC was in the top 15, as reported by AGC in Construction Dive.

PAYMENT SURVEY – A limited survey run in this newsletter indicates that we still have a payment problem in construction, in most cases. Only 14 percent indicated they rarely get paid within the terms of the contract. So, 86 percent usually get paid within the terms of the contract. Of those, 43 percent always or frequently get paid within the terms of the contract. If you are among the 14 percent, maybe you should find out why.

Advocacy Issues

All three legislative bodies: Maryland, DC and Virginia are active. Please assist your association in monitoring the legislation that you will be asked to live with.

MARYLAND –  I will testify on Wednesday on the need to reduce retainage on Maryland State Work to 5 percent and require it be paid within 90 days of substantial completion.  HB 327 is in the House Health and Government Operations Committee and it would be great to get a contractor to testify on Prompt Payment and on Retainage.  At this time a definition of “substantial completion” is not included. 

DC – Non-compete agreements will soon not be valid in DC. This article in National Law Review (natlawreview.com) explains the ramifications.

VIRGINIA – Are your workplace policies and procedures up to date for Virginia’s PERMANENT COVID-19 rules? Here is an article from Lerch Early that will help you comply.

Member Issues

Shapiro & Duncan Fab Shop Tour - Take an exclusive behind-the-scenes tour of Shapiro & Duncan’s 52,000 sq. ft. prefabrication shop in Landover, MD.  As one of the largest mechanical contractors in the DC metropolitan region, Shapiro & Duncan has plumbing and HVAC assemblies and modular system components ready for just-in-time delivery and installation.  Please like, share, comment, and subscribe to their channel for more videos.


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