Prevent Contract Errors
This article from JD Supra lists some valuable tips for preparing for a big project, but could be used in all projects. They recommend:
- Know the entire contract – the boilerplate is not the complete contract.
- Be sure of other documents that make up the contract – drawings, specifications, etc.
- “Which claims are included?” – court, arbitration, etc. Check to see what you have to cover.
Charging Fines for Safety Violations?
OHSA has multiple sections that address employee discipline, which can be confusing to some. Ned Fitter, Safety Director at Telligent Masonry said, “You can discipline an employee for a safety infraction if you have a disciplinary policy in place, along with clearly stated policies and procedures that the employee has been trained on. If you receive an OSHA citation and then discipline an employee for it, this action is considered retaliation. I would not use the word citation when disciplining employees for safety infractions. I have seen larger general contractors fine subcontractors for clearly defined safety violations such as fall protection, excavation, or electrical issues.”
Also, we are seeing cases where GCs are including fines for safety violations in their subcontracts. Are you seeing that in your contracts?
Largest General Contractors
Whiting-Turner at five is the highest ranking GC Partner of ASAMW that is listed among the top twenty commercial contractors according to this article in ENR Magazine. Other partners in the top twenty include Gilbane (11) and Clark (16). Many of the other companies listed are active in the DMV and often discussed at ASAMW’s Subcontractor Information Exchange (SIE) that members attend each month.
New York Payment Laws
New York had good payment laws before they were amended in 2023, but the amendment enacted in November make them even better for contractors. New York law:
- Limits retainage at 5%
- Owners have 12 days to approve an invoice. Disapproval is only for specific reasons.
- Payment must be made within 30 days of approval.
- Contractors can STOP WORK with 10 days-notice if payment is not received.
- Substantial completion is more clearly defined than it is in the DMV.
Here is the article from our sister association in New York City.
Feedback on Bids: A Time-Saving Approach
Subcontractors want to know promptly if they've won a bid, but also appreciate feedback on unsuccessful bids to improve their chances in the future. Through meetings with GC Partners, ASAMW has identified a more efficient approach. Instead of receiving piecemeal feedback on each bid, subcontractors will receive periodic updates on all bids submitted to a particular GC Partner within a set timeframe. This consolidated approach saves time for both subcontractors and general contractors.
Are You in Top 1%? Why not?
If you live in DC, do you make at least $871,923 or do you make $553,800 in Virginia or $544,756 in Maryland? If not, you are not in the top one percent of earners in your state. I wonder how many subcontractors are in the top one percent while leading a number of employees in a very risky industry? Is it fair? Here is the article from the Washington Business Journal.
Economic Activity
The Federal Reserve’s Beige Book for May indicates some uptick in commercial construction. Although some projects are on hold due to financing and high prices of material and labor; retail, office and multi-family buildings are being absorbed as they are being built.
What Do YOU Want?
Is ASAMW doing everything you expect for you and your business? Are there important issues that we are missing in order to reach our mission of better construction through fair construction? Just reply to this email and we will make sure the Board considers it at our Board Retreat on June 20th. What about help with filing a lien? Do you want a weekly report on the liens filed in the DMV? What else?
Visit to Capitol Hill
Members Adrienne Smoot, Cindy Athey, Kimberlee Driggs, Martin Press, Dan McGuire, Patti and I will be visiting with area Senators and Representatives at the ASA Fly-in next Wednesday. Click here for a list of the issues we will be discussing.
What to Do About PLAs?
On June 25th ASAMW will host an event with Grunley Construction addressing ways to bid jobs that include PLAs and still be successful. This will be a roundtable discussion to include how to work with the Unions in order to complete a project profitably. Come prepared to ask questions and express concerns about the many projects that are coming in the future in DC, MD and for the Federal Government.
Remember Oct. 1st- the Scheduling Event
Scheduling challenges will be discussed at the upcoming ASAMW event Building Success Together: A Summit for General Contractors & Subcontractors at the Bethesda North Marriott. NOTE: this has been rescheduled from September 24. What are your thoughts? We expect to see all GC Partners, as well as members who wish to discuss strategies to accomplish fairness. Click here for more information and to register.
MEMBER UPDATES
Welcome new member Dave Saul and the folks at Alliant Insurance Services in Columbia to the ASAMW community. The ASAMW Professional Council is a committee that includes insurance companies that specialize in construction.
Tricia Neale with Thompson Greenspon earned the Certified Construction Industry Financial Professional Designation. Read about it here.
Preferred Insurance reminds us that June is National Safety Month.
ADVOCACY ISSUES
DC – Cindy Athey, Andy Steele and I met with Brian Hanlon, Director of the Dept. of Buildings in DC on May 29th. His department is trying to make work processes easier in the District and do more to prevent illegal construction. This new department has made it easier to report illegal construction on their Website here.
Maryland – I met with the MBE Liaison with MD Dept. of General Services on Thursday to discuss how they can improve procurement processes to help subcontractors succeed.
Virginia – No report
Federal – Priorities can be found here.
