STA March 2015 Newsletter

1March 2015

Email Feedback to the STA Office

Studies Provide a Snapshot of the NYC Construction Industry

SUBCONTRACTORS NEWSBringing New York’s Union Subcontractors Together to Build a Stronger Construction Industry

March 2015

2 President’s Message By Robert J. Ansbro

3 A Snapshot Of The Construction IndustryBy Hank Kita, STA Executive Director

6 Spotlight on New Development: The Whitney Museum

8 OSHA to Hold 2nd Annual Fall Safety Stand-Down in May

16 Another “C.O.F. E.D.” Danger – To Whom To Give That Critical NoticeBy: Henry L. Goldberg, Managing Partner, Goldberg & Connolly, STA Legal Counsel

19 UPS and Lifelock Deals for STA Members!

22 Yankee Stadium Tickets Discounted for STA Members!

IN THIS ISSUE

If you would like to receive a hard copy of Subcontractors News in the mail

each month, please email your full mailing address to [email protected]

with the subject line “Subcontractors News Hard Copy Request”


P R E S I D E N T ’ S M E S S A G E

STA Subcontractors News2

President’s MessageMarch 2015

I am pleased to announce new membership benefits that have recently become available. In

cooperation with the National Subcontractors Alliance (NSA), UPS, and Lifelock, our members can

receive discounts on shipping and members rates from both companies. Please see the announcements

inside this month’s issue for more details. You can expect to see announcements of additional member

benefits and discounts in the near future.

Yankee Stadium Tickets are also now offered at a discount for STA members! We have partnered

with the New York Yankees again this year for several games such as Yankees vs. Boston Red Sox and

Yankees vs. New York Mets.

As you know, union contractors play an important role in improving the economy of New York City.

The New York Building Congress recently released reports showing that the majority of constructions

workers in the local construction industry actually live in the five boroughs of the City. This helps

bolster the economy because they earn a solid income, which affects sectors of the local economy.

The report also showed that Hispanics are increasingly being hired instead of African-Americans by

construction companies. While these reports show that our industry is vital to the overall improvement

of the economy, we still have room for growth in the union sector.

From May 4th - May 15th, OSHA will be hosting the Second Annual Construction Fall Safety Stand-

Down as part of their national Fall Prevention campaign. This event will be a series of educational

discussions, training seminars, and demonstrations on how you can utilize different resources in hopes

to prevent and lower the number of incidents that occur. I encourage you to participate.

Please register today for our Annual Construction Awards Dinner. This is our main fundraiser for the

STA and we have to continue to show our support for members of our industry—we look forward to

seeing you on Saturday evening, May 9.

Sincerely,

Robert J. Ansbro


March 2015 3

A Snapshot Of The Construction Industry

Several studies released in the last twelve months have provided us all with an updated profile of the New York City construction industry. While these reports confirm some things that many of us suspected all along, there were also some surprises to be found as well regarding trends and the composition of the local construction industry.

A study recently released by the New York Building Congress affirmed the important role that the union construction industry plays in bolstering the economy of New York City. According to the report, a significant number of workers in the local construction industry live in New York City and earn a very good income-especially when compared with other sectors of the local economy.

The Building Congress report found that 75% of the workers in the New York City construction industry live in the five boroughs and that their comparatively high wages fortify the ranks of the middle class. Over 71% of those workers involved in construction live in households with incomes of at least $50,000. In addition, this report found that a limited advanced education did not prevent individuals from working in the construction industry. Of those in the industry, 84% were able to obtain employment in construction without a college degree.

In addition, the New York Building Congress report provided an interesting profile of the racial and ethnic makeup of those working in local construction. The report found that more Hispanics than African-Americans are employed by construction companies. Specifically, African-Americans who represent approximately 25% of the City’s population comprise 13% of the construction workforce. Hispanics would seem to wind up getting the jobs that African-Americans do not. Also, women are seriously underrepresented in the local construction industry comprising 9% of the workforce.

Another study issued by the Columbia University School of International Affairs in 2014 entitled “Expanding

Opportunity for Middle Class Jobs in New York City,” provides an interesting analysis of union construction in the five boroughs. This study paints a rosy picture of the union construction industry where market share is concerned. The Columbia researchers found that a majority of the market share in the New York City construction industry belongs to the union sector, although there was a trend observed towards the increasing share of work being handled by non union contractors and workers. Citing a Regional Plan Association report, the Columbia study maintained that while more than 85% of the construction market in the 1970’s was union, that number had shrunk to below 60% currently. At the same time, public sector construction projects which account for more than half of the total local construction market, are almost 90% unionized.

The Columbia report also affirmed the widespread observation that the construction industry was recovering from the Great Recession of 2008 and that robust growth could be expected in the coming years. The report’s authors cited the New York State Department of Labor’s long-term outlook that the construction industry would add over 14,000 workers in construction related jobs through 2020. This represents a 12.6% increase and places the industry sixth out of the eighteen sectors in terms of projected overall employment growth.

The snapshot of local construction from these two studies reveals that while our industry is vital to the local economy, the union sector has a lot of work to do to realize the level of dominance that it once had over the non union sector. In addition, while the racial and ethnic composition of our workforce continues to slowly diversify, we as an industry, are still a very long way off from reflecting the demographic trends of the general population. As a part of the union construction sector, we will only grow as we continue to accept and embrace the economic and demographic changes with which we are continually confronted.

BY HANK KITA, STA EXECUTIVE DIRECTOR

4 STA Subcontractors News

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5March 2015

Email Feedback to the STA Offi ce

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6 STA Subcontractors News6 STA Subcontractors News

Spotlight on New Development: The Whitney Museum

Newly Built Whitney Museum to Open

Nestled between the High Line and the Hudson River

in Manhattan’s Meatpacking District, the Whitney

Museum’s new building, which was worked on by

STA subcontractor members,opens its doors to the

public on May 1, 2015. The new location, designed

by Italian architect Renzo Piano and contracted by

Turner Construction, is a state-of-the-art, sustainable

addition to New York City’s rich museum legacy. The

new building includes approximately 50,000 square

feet of indoor galleries and 13,000 square feet of

outdoor exhibition space, more than doubling the

space of the Whitney Museum’s former location on

the Upper East Side. The building also boasts an almost

18,000 square foot gallery for special exhibitions,

making it the largest column-free museum gallery in

New York City.

A Sustainable Masterpiece from Renzo Piano

Mr. Piano drew inspiration for the $422 million

structure from the surrounding neighborhood,

incorporating the industrial feel of the Meatpacking

District into his asymmetrical design. The building also

interacts with the High Line and the Hudson River,

bringing together art, the park and the river view.

The building features terraces that face the High Line,

and a striking cantilevered entrance along Gansevoort

Street that transforms the outdoor area into a large,

sheltered public space beneath the park. The new

location achieved LEED Gold certification, using an

advanced building management system and chillers,

a curtainwall system and an independent convection

system. The structure also includes more efficient and

longer-lasting LED lighting in its galleries and public

spaces, a sophisticated shade system to control the

amount of light that enters through the museum’s

windows and skylights throughout the day.

New Amenities for a Modern Space

The new Whitney building features exhibition space

in a lobby gallery (accessible to the public free of

charge), a special exhib itions gallery on the top floor

and two floors dedicated to the museum’s permanent

collection. When the building opens, it will mark the

largest display of the Whitney’s permanent collection

to date. A ground-floor with a restaurant and retail

shops, and a top-floor café make the new Whitney

a fantastic addition to New York City’s cultural

landscape.

The building also includes a multipurpose blackbox

theater for film, video and performances with an

accompanying outdoor gallery; a 170-seat theater with

Hudson River views; an education center complete

with state-of-the-art classrooms. It also holds a

Conservation Lab, a Works on Paper Study Center

and a Library Reading Room. The theater, classrooms

and study center are all brand new features for the

Whitney.

7March 2015


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The 2nd Annual Construction Fall Safety Stand-Down

hosted by the U.S. Department of Occupational

Safety and Health Administration (OSHA) will take

place May 4th to the 15th of this year.

Falls are the leading cause of death in the construction

industry; hundreds die each year and many more are

seriously injured on sites from unexpected and severe

falls. Lack of proper fall protection remains the most

cited violation by OSHA.

Topic talks, training and seminar demonstrations on

how to use different types of safety equipment will be

available in all 50 states at various labor organizations,

associations and universities in conjunction with

OSHA. Last year millions of construction employees

and workers across the United States participated in

the Fall Safety Stand-Down in hopes to educate and

lower the large number of incidents that occur.

OSHA launched their national Fall Prevention

campaign three years ago with the National Institution

for Occupational Safety and Health (NIOSHA), the

National Occupational Research Agenda and the

Center for Construction Research and Training.

The website for Fall Safety Stand-Down 2015 can be

found: https://www.osha.gov/StopFallsStandDown.

The site provides details on free educational and

training resources, fact sheets, how to conduct Stand-

Down events and other informational material. The

list of New York area events for Fall Safety Stand-

Down 2015 will be available on the OSHA website in

the near future.

The STA encourages all of its members to check out

the website and participate in this year’s events.

Together we can reduce the number of deaths and

injuries from falls and improper safety use, not only

in New York but across the nation.

Please contact OSHA or visit their website for more

information at https://www.osha.gov.


OSHA to Hold 2nd Annual Fall Safety Stand-Down in May

9March 2015


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• Risk management techniques

11March 2015


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Another “C.O.F. E.D.” Danger – To Whom To Give That Critical Notice

The New York City Standard Construction Contract

and the standard form contracts for other New York

State and local public agencies are riddled with time-

sensitive “notice” requirements. In most cases, these

are little more than brazen Contractor Forfeiture

Enhancement Devices, or “C.O.F.E.D’s.”

As we have repeatedly emphasized, contractors must

strictly comply with all of these in order to be entitled

to compensation for extra or disputed work and

owner-caused delays. However, as important as

the timeliness of such “notices,” is ensuring that

the “notice” is sent to the correct government

representative. This is not always easy to do

particularly when no assistance and misinformation is

often provided by agency field personnel.

We had to address this issue recently after a contractor

sent required notices to the president of New York

City Health & Hospitals Corporation (HHC). HHC

field representatives forcefully complained to the

contractor that such correspondence should not be

sent to the president of the agency, notwithstanding

clear contractual language to the contrary.

In this instance, the construction management company

(CM) hired by HHC wrongly advised the contractor

that, pursuant to a “Notice to Proceed” letter (which

was, itself, an official contract document), all project

correspondence should only be sent to the CM (as the

HHC president’s designated project representative)

and HHC’s project manager and should never be

sent to the HHC president. Apparently, it was, not in

the CM’s or project manager’s interest to keep the

president apprised of the contractor’s potential claim,

particularly where HHC personnel had failed to timely

obtain required building permits.

In reliance upon the notice provision of the contract

and the language of the “Notice to Proceed,”

notwithstanding the incorrect information given,

the Contractor rightfully (and correctly) forwarded

all notices to both the HHC president and field

management (CM and project manager). HHC’s

general conditions (which were based on the New

York City’s Standard Construction Contract) did, in

fact, specifically require all Notices of Delay be sent

to the president of HHC. Furthermore, Articles 32 and

33 of HHC’s contract specifically provided that the CM

and the project manager shall not have the power

to issue an extra work order. HHC’s contract further

explicitly stated that “[t]he Contractor is warned that

the Construction Manager [and project manager] has

no power to change the terms of this Contract.”


BY: HENRY L. GOLDBERG, MANAGING PARTNER, GOLDBERG & CONNOLLY, STA LEGAL COUNSEL

continued on page 20

17March 2015


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Clearly, the CM and HHC’s project manager were not

reading their own contract correctly. Failure by the

contractor to send its notice to HHC’s president under

these circumstances could have been “fatal,” resulting

in the contractor having waived all of its right to be

compensated fairly.

Not only were the HHC personnel giving the contractor

the wrong information, they were doing so in a

forceful and threatening manner.

G&C Commentary

The most basic principles of fairness inform us that

it shouldn’t be this way. The work involved may

absolutely have been extra work. The impact may

absolutely have resulted from this delay caused by the

owner. However, if the required notice was not sent

by the required deadline to the required person, the

contractor could have suffered the harsh result of

unjust forfeiture.

Contractors must remember that while the owner’s

field and supervisory personnel may direct a contractor

to only send notices to themselves or not to send

notices at all and to simply “come over to the trailer”

to settle any issues, they rely on such advice at their

own peril. It is a public owner’s upper management

and legal department, not project level staff, which

will ultimately approve the resolution of any claims.

All verbal assurances by the owner’s project staff that

“we’ll work it out amongst ourselves” will, when it

counts, be meaningless.

If you encounter resistance in complying with

specific contractual procedures, inform agency field

personnel that you are simply complying with the

specific requirements of their contract. If someone

from the owner with authority to change contract

terms provides written confirmation (which will never

happen) that the contractor does not have to follow

the contract’s strict notice and/or dispute provisions,

then, and only then, should a contractor back off.

Otherwise, a contractor must strictly comply with all

contractual notice requirements.

The contract is the bible. Review all contract terms with

counsel. Be fully aware of all aspects of the applicable

notice and damage “recordkeeping” requirements.

Never let these provisions frustrate your right to clear

entitlement.

Henry L. Goldberg may be reached at (516) 764-2800

or via email at [email protected]

This article has been prepared for informational purposes only.

It is not a substitute for legal advice addressed to particular

circumstances. You should not take or refrain from taking any

legal action based upon the information contained herein

without first seeking professional, individualized counsel

based upon your own circumstances. The hiring of a lawyer is

an important decision that should not be based solely upon

advertisements. Before you decide, ask us to send you written

information about our qualifications and experience.

©Goldberg & Connolly 2015

continued from page 18


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19March 2015

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April 10th, 2015 vs. Boston April 28th, 2015 vs. Tampa Bay April 12th, 2015 vs. Boston

April 24th, 2015 vs. New York (NL) May 7th, 2015 vs. Baltimore April 26th, 2015 vs. New York (NL)

June 6th, 2015 vs. Los Angeles (AL) May 9th, 2015 vs. Baltimore May 8th, 2015 vs. Baltimore

June 9th, 2015 vs. Washington May 10th, 2015 vs. Baltimore June 5th, 2015 vs. Los Angeles (AL)

June 21st, 2015 vs. Detroit May 23rd, 2015 vs. Texas June 10th, 2015 vs. Washington

July 18th, 2015 vs. Seattle June 18th, 2015 vs. Miami June 19th, 2015 vs. Detroit

August 4th, 2015 vs. Boston July 4th, 2015 vs. Tampa Bay July 17th, 2015 vs. Seattle

August 22nd, 2015 vs. Cleveland August 25th, 2015 vs. Houston July 23rd, 2015 vs. Baltimore

September 5th, 2015 vs. Tampa Bay September 12th, 2015 vs. Toronto August 7th, 2015 vs. Toronto

August 26th, 2015 vs. Houston

September 4th, 2015 vs. Tampa Bay

September 25th, 2015 vs. Chicago (AL)


Yankee Stadium Tickets Discounted for STA Members!

The Subcontractors Trade Association is proud to once again be partnering with

the New York Yankees to offer STA members discounted tickets to home games at

Yankee Stadium.

30 games will be discounted at 10%, 25% or 50% off including April 10th and 12th

against the Boston Red Sox and April 24th against the New York Mets. See the full

list of games below.

Take advantage of this offer to see the 27-time World Champions! Click here to buy

tickets. Enter the STA special promotional code STANYY when prompted.

Please call the STA office at 212-398-6220 with any questions.

23March 2015


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Subcontractors Trade Association 1430 BroadwaySuite 1600New York, NY 10018T: 212.398.6220F: 212.398.6224e-mail: [email protected]: www.stanyc.com

Offi cersRobert J. AnsbroPresidentThe New York Roofi ng Company

Robert Weiss1st Vice PresidentA.J. McNulty & Co. Inc.

Peter Cafi ero2nd Vice PresidentIsland Painting

John A. FinamoreTreasurerJordan Panel Systems

Joseph LeoSecretaryAtlantic Contracting & Specialties, LLC

Hank KitaExecutive Director Subcontractors Trade Association

Henry GoldbergLegal Counsel Goldberg & Connolly

Active Past PresidentsGreg S. Fricke, Jr.Leonard Powers, Inc.

Jerry LissA. Liss & Co. Inc. Alan Nathanson (Honorary)Forsythe Plumbing & Heating Corp.

Lawrence RomanWDF, Inc. Arthur RubinsteinSkyline Steel Corp.

Robert SamelaA.C. Associates Gary Segal (Honorary)Five Star Electric Corp. Lawrence WeissA.J. McNulty & Co., Inc.

Scott RivesWoodworks Construction Co, Inc.

Board of DirectorsJoseph Azara Jr.C.D.E. Air Conditioning

Christine BocciaJD Traditional Industries

Dan J. DeVitaPenava Mechanical Corp.

John DierksDierks Heating Company, Inc

Andrew DrazicATJ Electrical

Brent FleisherEnvironet Systems

James FlynnIndependent Temperature Control

Patrick GallagherBP Mechanical Corp.

Stephen GianottiArcadia Electrical Co., Inc.

Sandra Milad GibsonMilad Contracting Corporation

Craig GilstonGilston Electrical Contracting

Gloria KemperRecon Construction Corp.

Randy RifelliUnited Iron, Inc.

Guy VandeVaarstFirecom Inc.

John VillafaneEldor Electric

Upcoming Events

- Board of Directors Meeting: Tuesday, April 14, 5:30pm

- STA Insurance Seminar: Tuesday, April 21, 8:00am

- STA 46th Annual Construction Awards Dinner: Saturday, May 9, 7:00pm

trengthen New York’s construction industry

each member firms to increase business opportunities

dvocate to preserve subcontractors’ rights

O U R M I S S I O N S TAT E M E N T

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Manhattan Long Island212-661-6166 516-256-3500www.grassicpas.com

find the balance to gain a competitive edge

For more than 30 years, Grassi & Co.’s Construction Practice has been assisting contractors, engineers, suppliers and distributors minimize their tax liability, uncover potential savings, and build a successful future.

Manhattan Long Island

STA March 2015 Newsletter

Documents

Transcript of STA March 2015 Newsletter