Important Discussion about PLAs
Although space is limited, it's imperative for our members to consider projects involving PLAs in their future work. With some construction sectors slowing down, you need to be prepared to bid on public jobs with PLAs. We're holding a confidential discussion on the ins and outs of such jobs. The team at Grunely will lead this discussion, but the most important questions will come from you. You can ask questions yourself or submit them anonymously ahead of time. Click here to learn more and to register.
What are Independent Contractors?
If you are using, or plan to use independent contractors, you should review this article from CLA, the accounting firm. They recommend you evaluate current independent contractors against the new rule to determine classification. ASAMW wants to make sure its members are protected from prosecution and fines, but you have to make your own decision about what is best for your company. There has been a 57 percent surge in the use of independent workers in the US according to MBO Partners. I am sure a lot of that increase is in construction. We learned this week that two companies that are part of ASAMW and three labor providers are being sued by this same office, the DC Office of the Attorney General for wage violations. Click here to read OAG’s press release.
Are Your Subs Using Legitimate Workers?
To clarify the issue of the use of subcontractors in projects in DC, we received the following explanation from an attorney for DC’s Office of the Attorney General:
The question of construction worker classification is governed by D.C.’s Workplace Fraud Act. That Act applies what is known as the ABC test. The ABC test usually means that construction workers are required to be W-2 employees. While construction companies may of course subcontract work, workers of the subcontractor should ordinarily be W-2 employees of the subcontractor (or of the sub-subcontractor, etc.). Penalties for misclassification include penalties of $1000-5000 per misclassified worker, and $500 in statutory damages for misclassification that goes to the worker. There is joint and several liability for upstream contractors.
Your Contract Clause Regarding Wage Violations
Most GCs are including language in their contracts about record production to address wage violations. Subcontractors should carefully read both the GC’s and the Owner’s contracts to assess monetary fines, as well as suspension for non-compliance with record production demands. Also, does the contract allow for withholding contract funds or liquidated damages for non-compliance?
What do GCs Worry About?
QBE consultants, surveyed 500 US commercial GCs and CMs to “uncover the key risks that threaten project timelines, budgets and safety.” Their Risk Report found that Cybersecurity, Cost overruns, high interest rates, labor shortage/lack of skilled labor and Economic downturn were what they worried about the most, while they are least prepared to manage the potential impacts from these risks.
Board Retreat
Yesterday, your ASAMW Board of Directors completed an annual retreat to determine goals for 2024-2025. We will report what they decided in the next newsletter.
Suffolk Coming to Town
This article from the Washington Business Journal says that Suffolk Construction Company out of Boston is opening an office in Herndon in order to gain a stronger foothold in data centers and government projects. Members who have previously worked with Suffolk are encouraged to attend the next SIE and explain their experience.
Why do Subs Pay for Textura?
We learned that Procore is following the lead set by Textura and charging subcontractors to use their platform. Some of us ask why this cost is placed on the subcontractors. What do you think?
AI
CMIC offers this fascinating look into what Artificial Intelligence can do on construction sites. There will be those who embrace it and those who do not, but it will have an impact. For instance, how will the use of cameras and drones keep projects on schedule and safe; how can AI be used for changes so that the change order process is improved for subcontractors; what about permitting? The fact that AI learns as it goes will be very beneficial to those who embrace it early.
Jason Wilt
We at ASAMW are deeply saddened to learn of the passing of Jason Wilt, with Winmar Construction. Here is his obituary in the Washington Business Journal.
Remember Oct. 1st - The Scheduling Summit
Scheduling challenges will be discussed at the upcoming ASAMW event on October 1, 2024, Building Success Together: A Summit for General Contractors & Subcontractors at the Bethesda North Marriott. What are your thoughts? We expect to see all the GC Partners as well as members who wish to discuss strategies to accomplish fairness. Click here for more information and to register.
MEMBER UPDATES
We are pleased to welcome Don Zeiders, Bob Bryant, Jason Carter, Randy Perillo, and the team at JCMAssociates back to the ASAMW family after a brief time away.
Trinity Group Construction will become our twenty-first General Contractor Partner, joining other GCs in the area who are helping us meet our mission of Better Construction through Fair Construction. Welcome Ben Wallen, Flip Wallen and Reginald Arnold to the ASAMW Family.
Distracted Driving – Ryan Hogan with Preferred Insurance reminds us how distracted driving causes so many accidents. Click here for a helpful tool box talk.
Preventing Harassment – Kevin Gass with AssuredPartners found a helpful paper on practices that work for preventing harassment on construction projects, a real problem that needs to be addressed.
Note: The next edition of this newsletter will be on July 18, 2024. We will skip the July 4, 2024 edition for the holiday.
UPCOMING EVENTS
June 25, 2024 – Negotiating Project Labor Laws
September 5, 2024 – ASAMW Fall Golf Tournament
September 11, 2024 – SAVE THE DATE - Joint CFMA/ASAMW Event
September 17, 2024 – GC Partner Meet and Greet – Clark Construction
October 1, 2024 – Building Success Together: A Summit for General Contractors & Subcontractors (NOTE: This is rescheduled from Sept 24)
October 29, 2024 – SAVE THE DATE - Frontrunners Ghost Tour
February 22, 2025 – SAVE THE DATE – 61st Annual Subby Awards Gala
