What is an Independent Contractor?

If you think you have someone on your projects who is an independent contractor, then you could be liable for back pay and penalties. The article provided by ASAMW member CBM gives some good guidance on what to look for and protect yourself from any surprises.

It is highly likely that those you are calling independent contractors are immigrants. Comprehensive Immigration reform is not in the cards anytime soon, so employers will have to find a way to deal with the predominance of immigrant workers in construction. One study reports one in five people who are part of the essential workforce are immigrants. It is higher than that in construction in the DMV. Your board is wrestling with this issue. Your ideas are welcome.

Union Station Project

No construction contracts have been announced on the planned $8.8 Billion upgrade to Union Station in DC.  This Construction Dive article provides a status report. This could have an impact on the availability of labor if work begins in 2027 as planned, whether you bid on it or not. 

Racism in the DMV?

We see examples of racism on construction projects in the DMV all too often. I was reminded of this when I saw a very disrespectful text from a delivery driver to one of our members. I hope the driver got fired, but we have to be sure our employees are sensitive to other races. We cannot lose more workers. 

Pay if Paid still seen in DMV

Pay if paid language in a construction subcontract is null and void in Virginia. We still see it in DC and Maryland and some Virginia GCs still have it in their contract.  This PowerPoint from the ASA SubExcel Convention gives some worthwhile education on the types of payment clauses and how to deal with each.  There are additional presentations from SubExcel on the ASA Website.  

Giuseppe Cecchi

ASAMW and the rest of the construction industry are saddened by the passing of industry icon Giuseppe Cecchi. He is remembered for his fairness. Read his obituary here. 

Certify your Affirmative Action Program

If you do Federal work, you will have to certify your Affirmative Action Program by July 1, 2024.  This Contractor Portal will provide the necessary information.   

What is Fair?

The GC demands the close out documents to be delivered by the end of the day. You have been providing this information throughout the life of the project, but the Owner is using final payment to force you to use your clerical staff to put it in the format requested by the Owner. What do you do?

Staged Construction Accident

New York is considering legislation to make staging a construction worksite accident a class E felony. It seems this is becoming more common. We have heard of people staging car accidents for insurance fraud, but not in construction. Let me know if you are aware of this happening in the DMV.

Reimbursement for Work Acceleration

Subcontractors should protect themselves from not being reimbursed for acceleration costs by negotiating out of the subcontract any clauses which unilaterally grant the prime contractor authority to compel acceleration of the work without the obligation to reimburse costs. Thanks to Walter Breakell, NESCA Legal Counsel for bringing this to our attention. Here is a change recommended by ASA in its 2020 Subcontractor Negotiating Tips:  Subcontractor shall be entitled to equitable adjustments of the contract price, including but not limited to any increased costs of labor, supervision, equipment or materials, and reasonable overhead and profit, for any modification of the project schedule differing from the bid schedule, and for any other delays, acceleration, out-of-sequence work and schedule changes beyond Subcontractor’s reasonable control.”

Spring Golf Tournament at Whiskey Creek

Many thanks to all who attended and sponsored yesterday's ASAMW's Golf Tournament. Congrats to our winners: Mens Longest Drive - Will Billinger, ESI; Womens Longest Drive - Claire Connolly; Closest to the Pin - Aaron Shapiro, Shapiro & Duncan; Putting Contest - Vincent Munez, Pillar; Team winners: First Place - Benchmark Utility; Second Place - Telligent Masonry; Third Place - Press Mechanical. See you for our Fall Golf Tournament at Stonewall on September 5, 2024.

MEMBER UPDATES

Distracted Driving Video – Click here for a paper that includes a video to address distracted driving. Thanks to Ryan Hogan with Preferred Insurance. 

ADVOCACY

DC –  The new DC Department of Buildings is looking to our members to help in stopping illegal construction in the District.  Our members frequently encounter unsafe and illegal construction as they begin projects. This paper from Mayor Bowser clarifies DOBs mission. 

The Universal Paid Leave contribution will increase to 0.62% if the proposed budget is approved. 

PLA legislation passed the DC Council so PLAs will be used on work over $50 million. 

Maryland – The following bills that could affect your business are expected to pass and take effect on Oct. 1, 2024:

• SB 556 will allow for price adjustments for material price fluctuations of certain project-specific materials.
• SB 183 adds Supplier to the Maryland Prompt Payment act, requiring payment within 10 days of contractor receiving funds from the State.
• SB 525 requires certain disclosures for employment applications.
• SB 485 is an attempt to clarify the Family and Medical Leave Insurance Program that will take effect July 1, 2025. 
• SB 436 establishes a penalty of up to $10,000 for each employee misclassified and up to $30,000 for a third offense.

Virginia – No report