Ike's Newsletter February 19, 2021

Executive Director's Report

Legal Subcontracting – Members were enlightened to learn what they can and cannot do when subcontracting their work.  ASA of Metro Washington wants to keep its members and other subcontractors within the legal boundaries of state and federal wage and hour laws.  Future events will explain how other subcontractors are meeting fluctuating labor needs in an acceptable way. For now, to be in compliance, this is the ABC rule for DC:

(A)  The individual who performs the work is free from control and direction over the performance of services, subject only to the right of the person or entity for whom services are provided to specify the desired result;

(B)  The individual is customarily engaged in an independently established trade, occupation, profession, or business; and

(C)  The work is outside of the usual course of business of the employer for whom the work is performed.

Click here to learn what is in the works for the US DOL’s application of the independent contractor rule. 

Also, if you have a specific question about subcontracting that you would like to ask anonymously, just reply to this email or forward it to [email protected].   


Maryland Members be Aware
 – 
The Maryland Tax RELIEF Act will benefit Maryland businesses as well as individual Marylanders.  Here is a brief list thanks to Tom Bailey (CBM) and Brian Pollack (LRMD).  The full tax alert is available here.

  • Coronavirus Relief Payments:  To the extent included in federal taxable income, taxpayers (businesses and individuals) may subtract Coronavirus relief payments, including grants or loans applied for, after March 5, 2020 on their Maryland tax return. 

  • Pass-through Entities:  Pass-through entities can now elect to pay the tax imposed with respect to certain shares of ALL members of the pass-through entity, rather than only resident members.  Each member can then claim a credit against the income tax for their proportionate share of the tax paid by the pass-through entity. 

  • Unemployment Benefits: To the extent included in federal adjusted gross income, taxpayers may subtract the amount of unemployment benefits received during the taxable year on their Maryland return. This subtraction is only available to taxpayers with a filing status of single, married filing separate, or dependent with a FAGI of less than $75,000, and filers with married filing joint, head of household, or surviving spouse status with a FAGI of less than $100,000.


2021 SUBBY Replacement Event. Still Need Nominations
 – 
The fifty-seventh 2021 SUBBYs will be not be held this year, but the Big Blow Out will be an exciting replacement.  SUBBY Awards will be presented in certain categories and you can submit nominations in the following:

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 event for 2021 and keep those nominations coming in. We need a videographer…can you help? 

ASAMW and Fair Subcontracts – After meeting with Henley and Gilbane, ASAMW is seeking a meeting with its other GC Partners to discuss the Subcontract Addendum.  Many of you have received a copy of this addendum and, if not, you can still do so by replying to this email. 

Substantial Complete: Do we have a problem?  Although some other states have passed laws to clearly define substantial completion and punch list procedures, there does not seem to be a problem in the DMV.  Be sure you have a FAIR definition of Substantial Completion in your Subcontract.  Here is the definition, in part, used in the Federal Acquisition Regulation (FAR) -  “the work shall be deemed ‘substantially complete’ if and only if the Contractor has completed the work and related contract obligations in accordance with the contract documents, such that the Government may enjoy the intended access, occupancy, possession, and use of the entire work without impairment due to incomplete or deficient work, and without interference from the Contractor's completion of remaining work or correction of deficiencies in completed work.”

Are you seeing material shortages  What are you seeing?  Neil Agarwal with GE Frisco states, “Over the past year, the volatility of lumber pricing and availability is unlike anything seen historically. Demand has continued to far outpace supply, causing lumber prices to increase to all-time highs and availability to be scarce for many types of lumber products.”  We hear of shortages in insulation, drywall, glass, appliances and some electrical devices.  What do you see? 

Annual Sponsor Highlight

 

 

A third-generation family-owned business, Shapiro & Duncan has been serving customers for over 45 years. As one of the largest mechanical contractors in the D.C. metropolitan region, the company has built a team of engineers, welders, pipefitters, plumbers, HVAC technicians, instructors, and virtual design coordinators. Our team produces state-of-the-art plumbing and HVAC assemblies and modular system components ready for just-in-time delivery. Completing over 2,500 to-date, Shapiro & Duncan is a leader in a wide range of commercial design-build projects including healthcare, education, institutions, data centers, renovations and government facilities. Our engineering, construction, fabrication, installation and maintenance teams excel at demanding, time-sensitive projects that require sophisticated project management capabilities.

Advocacy Issues

All three legislative bodies, Maryland, DC and Virginia, are active.  Please assist your association in monitoring the legislation that will affect you and your business. 

Maryland  See article about Maryland RELIEF Act.  Also, a bill to require retainage payments by the State of Maryland within 90 days is languishing in the House Health and Government Operations Committee.  An email from one of you to a member or members of this committee will go a long way toward getting this passed.   

DC - Due to a bill passed at the end of last year, CBE members in DC are scrambling to see if they should bid on work for the District.  We recommend that you do bid until guidance comes forth from DSLBD.  This regulation provides that in order to be a registered CBE, the company must be 50% owned by DC residents.

Virginia  Will bid listing become required on VA Public Projects? A bill working its way through the Virginia Legislature will require bid listing on public projects in the Commonwealth.  SB 1305 has the support of this organization and ACE, but is opposed by the General Contractors.  Your opinion is welcome.   

New Member Update

We are proud to welcome our newest member, Cap8 Doors and Hardware of DC. Lisa Williams and her team are a welcome addition to our growing family of the BEST Subcontractors in the DMV.

Upcoming Events

2021 Social Media Strategy for the Modern Contractor: Three Part Series (Virtual)
February 23, March 2, March 9 - 11:00am-12:00pm  
Register

2021 SubStrong - Building Your Bottom Line (Virtual)
February 24-26 - 11:00am-12:00pm  
Register

Real Changemakers Show How to Hit the Ground Running (Virtual)
March 4 - 5:00pm-6:15pm
Register

Protect Your Rights! (Virtual)
March 23 - 12:00pm-1:00pm
Register

Spring Golf Tournament
April 16 - 9:00am - 5:00pm
Whiskey Creek Golf Course, Ijamsville, MD
Register

SAVE THE DATE Fall Golf Tournament
September 23 - 9:00am - 5:00pm

Stonewall Golf Club, Gainesville, VA

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