MONTHLY EDUCATIONAL JOURNAL OF THE FOUNDATION OF THE AMERICAN SUBCONTRACTORS ASSOCIATION
APRIL 2021
Thinking About Cash Management
1004 Duke Street, Alexandria, VA 22314 | (703) 684-3450 | www.asaonline.com | communications@asa-hq.com
FASA'S
EDITORIAL PURPOSE The Contractor’s Compass is the monthly educational journal of the Foundation of the American Subcontractors Association, Inc. (FASA) and part of FASA’s Contractors’ Knowledge Network. The journal is designed to equip construction subcontractors with the ideas, tools and tactics they need to thrive. The views expressed by contributors to The Contractor’s Compass do not necessarily represent the opinions of FASA or the American Subcontractors Association, Inc. (ASA). MISSION FASA was established in 1987 as a 501(c)(3) tax-exempt entity to support research, education and public awareness. Through its Contractors’ Knowledge Network, FASA is committed to forging and exploring the critical issues shaping subcontractors and specialty trade contractors in the construction industry. FASA provides subcontractors and specialty trade contractors with the tools, techniques, practices, attitude and confidence they need to thrive and excel in the construction industry. FASA BOARD OF DIRECTORS Richard Wanner, President Courtney Little Richard Bright Anthony Brooks Brian Cooper Jack Austhof SUBSCRIPTIONS The Contractor’s Compass is a free monthly publication for ASA members and nonmembers. For questions about subscribing, please contact communications@asa-hq. com. ADVERTISING Interested in advertising? Contact Richard Bright at (703) 684-3450 or rbright@ASA-hq.com or advertising@ASA-hq.com. EDITORIAL SUBMISSIONS Contributing authors are encouraged to submit a brief abstract of their article idea before providing a full-length feature article. Feature articles should be no longer than 1,500 words and comply with The Associated Press style guidelines. Article submissions become the property of ASA and FASA. The editor reserves the right to edit all accepted editorial submissions for length, style, clarity, spelling and punctuation. Send abstracts and submissions for The Contractor’s Compass to communications@ASA-hq.com. ABOUT ASA ASA is a nonprofit trade association of union and non-union subcontractors and suppliers. Through a nationwide network of local and state ASA associations, members receive information and education on relevant business issues and work together to protect their rights as an integral part of the construction team. For more information about becoming an ASA member, contact ASA at 1004 Duke St., Alexandria, VA 22314-3588, (703) 684-3450, membership@ASA-hq.com, or visit the ASA Web site, www. asaonline.com. LAYOUT Angela M Roe angelamroe@gmail.com © 2021 Foundation of the American Subcontractors Association, Inc.
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F E AT U R E S Why Effective Cash Flow Management Is Crucial for Subcontractors..........................................................................................13 by Tom Bailey, Councilor, Buchanan & Mitchell, P.C. – CPAs & Business Advisors
Mitigating Cash Flow Issues by Serving a Preliminary Notice.................15 by Patrick Hogan, Handle.com
Did You Know? Why Is the Insurance Market Hardening?..........................................................17 by Gary R. Semmer, CIC, CWCAC, AssuredPartners, Inc.
Managing Cash through AI in the Construction Industry: Five Lessons for Leaders.............................................................................................18 by Mark Marone, PhD., Dale Carnegie and Associates
In the Midst of Chaos, There Is Also Opportunity. Examining the Upside of the Upside Down......................................................20 by Gregg Schoppman, FMI
Stopping Unfair Subscriptions in Construction Technology ...................23
by Chad Pearson, Plexxis Software, Inc.
D E PA R T M E N T S ASA PRESIDENT'S LETTER.......................................................................................5 CONTRACTOR COMMUNITY...................................................................................6 ALWAYS SOMETHING AWESOME.........................................................................9 LEGALLY SPEAKING: Prompt Payment Laws: Know Your Rights.........................................................10 by Greg Reaume, McInerney & Dillon
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PRESIDENT 'S LET TER Dear ASA Members: I am so excited for everything on the horizon right now at ASA. We have so many amazing things happening, and I hope you are just as joyful for the future as I am. In so many ways I feel like we are turning a corner towards a new, brighter tomorrow, and I can’t wait to see where the future takes us. Providing our members with incredible education is so important, and we have THREE different webinars lined up for the month of May! First on May 12th we have “Planning for Recovery for SMB Contractors”, which will be presented by our friends at Procore. Then on May 19th the Small Business Administration will be holding “ASA Day with SBA”, something I know will be an important session for so many. Just a few days later on May 26th, Gary Semmer from the great folks at AssuredPartners will be presenting “Does Your Insurance Program Cover All the Insurance Requirements in the Contracts You’re Signing?” I highly encourage you to register for all three of these important sessions. More exciting webinars will be offered through the year, and are all included in your ASA membership! Many exciting things are happening on the advocacy front as well. I am honored to announce the virtual launch of the Construction Procurement Caucus (CPC) on Wednesday, April 21, 2021. The CPC serves as a bipartisan forum for Members of Congress to discuss ways to improve efficiency in the federal government procurement process with the goal of promoting common sense design and construction services and procurement reforms to benefit the government, taxpayers, and businesses of all sizes. I want to thank the ASA Government Relations Committee (GRC) for their leadership working with the Construction Industry Procurement Coalition (CIPC) in the formation of such an important caucus to allow our
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important legislative issues to be heard and to be heard loudly throughout the halls of Congress. Finally, I want to thank the CPC Co-Chairs: Rep. Scott Peters (D-CA) – 52nd District Rep. Pete Stauber (R-MN) – 8th District for their leadership and all of the members of Congress, who support this caucus. I remain confident we will be hearing about the benefits of this caucus throughout the 117th Congress. In late March, former Boston Mayor Marty Walsh was confirmed by the Senate and sworn in as the new Secretary of Labor. I congratulate the new Secretary and I am informed his initial orders of business are expected to be largely focused on COVID and broader Administration agenda items. For example, back in January President Biden instructed OSHA (which is part of the Department of Labor (DOL)) to issue proposed COVID-related workplace safety rules. While OSHA issued interim guidance, it missed the March 15th deadline set forth by the President to issue proposed rules and is still working to respond. Additionally, Secretary Walsh is also one of the members of the cabinet who have been tasked to help sell the President’s new infrastructure proposal.
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Beyond the immediate COVID concerns and legislative pushes, DOL also has a number of other regulatory items on its plate that are important for us to stay aware of including the independent contractor rule, which ASA commented on during the Trump Administration. This rule focuses on when a worker can be classified as an independent contractor rather than an employee. The rule was originally slated to go into effect on March 8, 2021 and on March 11, 2021, the DOL issued a notice of its intent to entirely withdraw and strike the Trump independent contractor rule. The notice is being held open for 30 days for comment. Another area where the DOL has been charting a change of course relates to the rules for when two companies will be considered joint employers for the purpose of liability under the Fair Labor Standards Act (FLSA). In early 2020, the Trump Administration issued a new rule narrowing the instances in which two entities will be considered joint employers. On March 11th, the DOL issued a proposed rule to repeal the Trump Administration’s joint employer rule and to revert back to the prior rule promulgated by the Obama Administration that expanded the instances in which companies can be considered joint employers. Also, on our DOL radar is the upcoming rules on tipped employees, overtime, and remote workers. We look forward to the GRC updates on all of these pending DOL regulatory actions. ASA is constantly hard at work for its members, and as always we are stronger when we stand together. I look forward to seeing all of you as soon as we can safely be together. Until then, keep up the incredible work you are doing in your communities and for ASA. God Bless, Brian Cooper ASA President 2020-2021
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CONTRACTOR COMMUNIT Y
From our Friends at National Glass Association BEC Presents™ is the latest limited series of short videos that spotlight need-to-know topics of unique interest to installing companies that can be watched on demand, at the viewer’s convenience, in about 30 minutes or less. BEC Presents episodes include: • A state of the glass, metal and contract glazing industry conversation among market segment leaders • Contract and HR considerations affecting the construction industry after COVID-19 • A look at the changing commercial real estate market • Update on what technical codes & standards glaziers should know • And more There is no cost to watch and no registration required. Tune in to check out BEC Presents. Brian Carroll (yes,
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THAT Brian Carroll) is ASA’s incoming president. Watch him in https://www. glass.org/2021-and-constructionindustry-after-covid-19.
Letter to Treasury Secretary Yellen ASA, along with the American Road & Transportation Builders Association and the American Association of State Highway and Transportation Officials, sent a letter to Treasury Secretary Yellen at the end of March urging her Department to ensure transportation infrastructure is defined explicitly as a qualifying eligibility in the American Rescue Plan. The Department of the Treasury’s guidance on the measure’s $350 billion in relief funds for state and local governments and $10 billion in capital assistance will be critical. States and local transportation revenues were hit hard by COVID-19, with 49 states publicly projecting declines. State departments of transportation are facing at least $18 billion in estimated revenue shortfall through 2024.
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During 2020, 18 states and 24 localities announced delays or cancellations of transportation improvements projects totaling over $12 billion. These real-world impacts of reduced transportation revenues highlight the opportunity presented by the American Rescue Plan’s investment to assist state and local governments with capital and operational challenges. Providing clear guidance and flexibility on the funds’ use for transportation infrastructure will be critical to ensuring funds are used expeditiously and with maximum impact.
New Platinum Sponsor— Dale Carnegie
Dale Carnegie and ASA are partnering to provide members with professional development at
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special prices. Over 100 years of proven success has made Dale Carnegie the industry leader as a true benchmark in professional training and development solutions. The Dale Carnegie experience engages learners from the initial contact through follow-up and support to reinforce key behaviors. Our methodology supports the development of skills and habits needed to sustain performance change. We believe that the emotional shift is as important as the behavior shift. That’s why our Performance Change Pathway™ shows our deliberate approach to create training programs that drive improved performance.
Coming in May The month of May brings many good things...including three fantastic webinars to educate, inform, and make you better versions of yourself. May 12 - Planning for Recovery for SMB Contractors. As more regions start ramping back up, projects get back on schedule, and more opportunities are available, 2021 is all about planning and recovering from the 2020 jolt. Join Procore’s Michelle Turner as she interviews Scalfo Electric’s Joelle Macrino on the ways that Small Business Specialty Contractors can embrace the new standard of digital transformation in the construction industry to stay ahead of the competition. May 19 - ASA Day with SBA. The U. S. Small Business Administration’s Surety Bond Guarantee (SBG) Program helps subcontractors get bonds up to $10 million! Attend ASA Day with SBA to learn how to increase your contracting opportunities, dispel myths surrounding the program, and give you the opportunity to obtain solutions to your specific bonding challenges. May 26 - Does Your Insurance Program Cover All of the Insurance Requirements in the Contracts You’re Signing? Gary R. Semmer, CIC, CWCA, Executive Vice President,
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AssuredPartners, Inc. will facilitate this discussion to make sure you’re knowledgeable about needed contract insurance requirements for all circumstances.
2021 COBRA Premium Subsidies The latest round of COVID relief legislation that was signed into law in March (the American Rescue Plan Act of 2021) included a provision to provide COBRA premium subsidies to help laid off employees and their beneficiaries retain health insurance coverage. COBRA provides certain employees and their beneficiaries with the right to retain coverage under an employer’s group health plan for a set period of time following certain triggering events including when the employee is laid off. Typically the cost of the COBRA premiums are borne exclusively by the individual. However, the new law provides subsidies to cover 100% of the premiums for eligible individuals who qualify for COBRA coverage for the period from April 1, 2021 through September 30, 2021. During this period, the qualifying individual does not have to remit COBRA premiums and instead the premium will be reimbursed directly to the employer, plan administrator or insurance company (depending on the nature of the plan) in the form of a tax credit. The Department of Labor (DOL) issued two new sets of FAQs in early April to help employees and employers understand the new COBRA premium subsidies and COBRA in general. The DOL also issued new model notices that employers and plan administrators may use to satisfy their obligation to alert COBRA qualifying individuals of the COBRA premium subsidies. In the event of a termination/layoff or other action (such as a reduction in hours) that would end an employee’s regular coverage under the group health plan and cause them to be eligible for COBRA.
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Employers Must Ensure Employee Handbook Policies Are Compliant with the NLRA This article is from our friends at SESCO Management Consultants, ASA's Human Resource Partner. To find out about this and all of the incredible member benefits included in your ASA Membership, click here. Peter Sung Ohr, Acting General Counsel of the National Labor Relations Board (NLRB or Board), has issued Memorandum GC 21-03(GC 21-03) to the regional field offices signaling significant changes to enforcement priorities under Section 7 of the National Labor Relations Act (NLRA). GC 21-03 cites increased workplace health and safety issues resulting from the COVID19 pandemic as well as employees’ political and social justice advocacy concerns as factors necessitating increased enforcement of the NLRA. It is not uncommon for the NLRB and its general counsel to modify or reverse their interpretations of the NLRA with changes in the composition of the Board. The political party of the presidency enjoys majority representation on the NLRB. Consequently, changes in the presidential administration often lead to significant changes for employers. GC 21-03 is emblematic of that trend. It states that “recent decisions issued by the current Board have restricted [Section 7 rights] for employees.” The enforcement priorities highlighted in GC 21-03 are in stark contrast to enforcement priorities under the previous administration and a clear indication that employers should expect increased NLRB oversight for the foreseeable future. We recommend all employers have SESCO review their Employee Handbook on an annual basis to ensure compliance with all federal and state laws.
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Well-deserved fanfare for fire folks! Help us congratulate two of our ASA San Antonio members for recently receiving awards from Honeywell Fire division. Out of 447 fire alarm distributors across the country, Fire Alarm Control Systems, Inc. received a Diamond Award and J.W. Dielmann, Inc. received a Silver Award. These companies have worked hard to continue year-over-year growth in the engineered fire alarm systems industry, to stay active with local engineers, and to promote the Honeywell solution. Congratulations and best wishes for continued success in the life safety industry!
Founded in 1995 by James W. Dielmann as a small business, the operation is a full service commercial life safety systems company specializing in sales, design, installation service and support of fire alarm systems, nurse call systems and portable fire extinguishers, for local state and federal facilities in San Antonio and South Texas.
Fire Alarm Control Systems, Inc. was founded in 1995 as a small business and operates in the San Antonio and South Texas areas. With our primary focus on providing fire alarm and voice communication systems for commercial, educational and federal government facilities, FACS has expanded its expertise in intercom, public address and mass notification systems.
The Contractor’s Compass is recognizing excellence in ASA’s ranks. Every month we are highlighting the activities, achievements, and actions of ASA members that might inspire others. Have something you want to share? Send us an email at communications@asa-hq.com.
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L E G A L LY S P E A K I N G Prompt Payment Laws: Know Your Rights by Greg Reaume, McInerney & Dillon
You might find this article helpful if you have been in this situation: your company is three months into a project, but last month’s payment has not come through on time. When you ask the general about it, he says that you did not submit the right paperwork - even though you submitted the same type of paperwork that you previously had without any issues. You try to find more backup and resubmit your pay application but get the same response. In the meantime, your material suppliers have started to get angry and are threatening everything from stopping your credit line to putting a lien on the project. Almost a year later you find out that the general was just stalling and was not paying you because it had spent the money on another project it had blown the budget on. Sounds stressful! And it is. Luckily, there are laws in most states penalizing general contractors for not paying you on time. These laws are generally 10
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called “prompt payment” laws. Some of them, like those in California, have a good amount of teeth. Their downside is that you usually have to start a lawsuit to kick them into gear. However, oftentimes just knowing enough to threaten using prompt payment laws can be just as good as starting a lawsuit. A quick note - most of my practice is in California, so I will focus on the law there. The laws in other states are generally similar.
What Is a Prompt Payment Law? A prompt payment law is a law that penalizes an owner for not paying a general contractor on time, or penalizes a general contractor not paying a subcontractor on time. These laws are found in the state’s legal code, usually called statutes. In California, prompt payment laws are found in California Business T H E
and Professions Code (the “B&PC”) § 7108.5. Under that law, a general contractor has to pay a subcontractor fairly soon after receiving the corresponding payment from the project owner. The only reason that a general contractor can withhold funds is if there is a “good faith dispute.” A good faith dispute is exactly what it sounds like. If your pay application asks for $50,000 in delivered materials but no one can find them on the project, then a general would be justified in withholding that money until the materials are found. However, anytime a general contractor withholds payment it can only withhold up to 150% of the disputed amount. Similar laws apply to retention payments. Civil Code § 8814(a) is where you will find that law in case you are looking for some exciting Friday night reading. These laws vary a bit between public
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and private projects, but the overall idea is the same.
How Do Prompt Payment Laws Help Me Get Paid? The first thing to realize is that prompt payment laws will not make money fall from the sky without threatening a lawsuit. I have yet to see a general contractor offer to pay penalties in addition to past due money purely out of a gust of goodwill. In California, if a general contractor fails to pay a subcontractor within seven days after getting money from the project owner for a progress payment, then the general contractor: • may be disciplined by the California State License Board, • forced to pay a penalty to the subcontractor of 2% of the amount outstanding for every month payment was not made, and • made to pay the subcontractor’s attorney’s fees for any action to collect the funds. These penalties apply to both public and private projects and are in addition to other claims for damages that may apply. A similar set of penalties applies to retention that has been wrongly withheld by a general contractor. The main difference is that a general contractor has ten days to pay retention after it has been paid, rather than the seven days for progress payments. To sum up – prompt payment laws help you get paid the amount you are owed plus interest and the cost of your attorney’s fees when you have a legitimate claim to withheld funds, threaten (and possibly follow through with) a lawsuit.
Putting Knowledge to Use Knowledge is power, but only if you use it. Prompt payment laws can help you get paid, but only if you set yourself up to take advantage of them. To do that, remember to:
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Make sure that your payment applications actually reflect the amount of work done. If a general contractor can claim that there was a “good faith dispute,” then that may nullify your prompt payment claim. A simple example of a “good faith dispute” is where a subcontractor’s payment application asks for more money than it should. If it's not obvious that all of the money in a payment application is owed to you, then you might lose your right to go after prompt payment penalties. When you sign a subcontract agreement, try to add in an exhibit that adds contract language stating that the prompt payment laws apply regardless of any other language in the contract. This is because the law may allow for a general contractor to put conditions of payment in the contract, and those conditions may nullify your ability to take advantage of prompt payment laws. If you suspect there may be problems with payment, start putting the related documents - like invoices, payments, work logs, and emails – in a separate folder so you can easily send it to an attorney. If you can organize it well and summarize what happened in a timeline, that will save you attorney’s fees because it will take the attorney less time to try to reconstruct what happened. All this said, future work from a general contractor you like working with is worth more money over the long run than chasing a small prompt payment claim. Prompt payment laws are great tools to have in your arsenal but something that should be used as a last resort.
Conclusion Prompt payment laws help subcontractors get paid and encourage general contractors to behave like good businesspeople. Knowing how they work will help you structure your project documentation in a way that can help you use them if you need to. They are a good tool
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to have, but not a substitute for good working relationships over the long term. About the Author Greg Reaume is an attorney with the firm McInerney & Dillon in California. Mr. Reaume comes from a construction family and worked in the field before becoming a lawyer. He can be contacted at gwr@ mcinerney-dillon.com , 213.926.1516, or Instagram @the.construction.lawyer .
LEGAL BUDGET Anyone working in construction should set aside a chunk of money for legal costs. Legal claims can come from many places. For example, a homeowner might sue on a warranty claim, or a general contractor might wrongly try to back-charge you. An employee might sue on a wage claim, or your insurance may wrongfully deny coverage. In any of those situations you are going to need to have a small war chest to set the record straight. A good attorney might be able to deal with most issues through phone calls and working informally with the other side. If not, they will be able to strategize with you about cutting your losses or continuing to argue for or against a claim against you. You should have at least $40,000 set aside in case you run into a serious legal problem. The costs to fight a case in court have a large range, but it is unlikely that you would spend less than $100,000 for a battle that went that far. That said – keep some money budgeted each year for “Legal.” Hopefully you will not need to use it, but if you do end up in a lawsuit you will find that budget to be a critical part of your firm’s long term viability.
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F E AT U R E Why Effective Cash Flow Management Is Crucial for Subcontractors by Tom Bailey, Councilor, Buchanan & Mitchell, P.C. – CPAs & Business Advisors A good way to think about cash flow is to see it as your business’ wallet. Cash flow reports are crucial tools for business owners and managers to help them understand where their business’ money is coming and going, and when. Making decisions based on that information is key. Establishing good accounting and financial practices is a good way to identify and manage cash flow issues. Other strategies that will help include financing fixed asset purchases whenever possible, invoicing promptly and regularly offering discounts for early payment, avoiding over and under billing (both negatively affect cash flow management), and speeding up closeout processes. Managing cash flow is crucial within the subcontracting industry and is a spot most companies struggle with. But making a few simple changes can greatly improve your cash flow system.
Net Profit or Cash Flow? Knowing and identifying the difference between net profit and cash flow will increase your knowledge of details within the cash flow system. Companies often find themselves profitable but with a negative cash flow. This is caused by having multiple projects occurring and not billing your clients consistently and on a timely basis. Collecting unpaid invoices and creating a billing schedule for clients is also important. Problems with billing can affect timing for accounts payable and accounts receivable. This can greatly affect cash flow because companies may end up finding themselves paying vendors before they get paid. Looking at job details and knowing when money is coming in will help a company better manage their cash flow.
Mind the Gap With subcontracting companies, closeout can affect cash flow because it can make demands on a lot of your business’ money due to last minute issues that arise. Being prepared can
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help. What you can do to avoid an unpleasant situation such as this is close the gap between collections and payments, use cash flow projections to plan out the timing of cash flow for different projects, and bill consistently. After starting with essentials such as these, you can continue to manage cash flow.
receivables and deposit controls. Decelerating cash disbursements involves companies using company credit cards, recruiting outside labor and performing cost-benefit analysis for vendor discounts. These steps will help limit the amount of cash leaving the company which positively affects overall cash flow.
Plan the Payments
Closeout Checklist
One other planning strategy is to review the due dates of predictable expenses such as taxes, marketing costs, insurance and rent. Consider paying those types of expenses when bills for big projects are not due. By having a timeline and a detailed budget, it will provide a clearer picture of all project and company expenses, and it will contribute to a great cash flow system. Breaking up your invoices by buying smaller amounts of inventory, requiring order payments up front and hiring staff during busy seasons can help shorten and improve the cash flow cycle. A cushion of funds is also helpful so when emergencies come up, businesses don’t need to dip into general funds. A variety of strategies also exist for subcontracting companies to manage their cash flow management at different stages of their jobs and projects. On the job companies should focus on budgeting, forecasting and negotiating. Establishing these effective cash management controls can help a company be better prepared for the project and boost the project’s overall cash flow. Companies should also be aware of progress billings, payment clauses and retentions. By understanding the details of smaller items like this, it makes the entire job and finances flow more smoothly. During the job, businesses should focus on accelerating cash receipts and decelerating cash disbursements. Accelerating cash receipts consists of billing clients on time, and monitoring
Finally, after the job, companies should focus on using a closeout checklist to lessen the probability of something going wrong and being aware of overruns because they can affect profitability from the job. Businesses can use creativity to find potential new sources of revenue outside their regular operations, such as through a short-term investment. Cash is fundamental for businesses throughout the subcontracting industry and developing a better understanding of how to effectively manage cash flow can greatly improve your ability to manage your operations without surprising and unpleasant distractions.
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About the Author Thomas Bailey, CPA, CVA is a principal and director of the construction and real estate practice at Councilor, Buchanan and Mitchell, P.C., an accounting and advisory firm that serves clients in the Washington, DC area and the Mid-Atlantic region. Tom has 25+ years of experience in public accounting and has been actively involved as a presenter and a member in the Washington, DC chapter of the American Subcontractors Association. His professional experience includes all areas of income taxation, planning and compliance, compilations, reviews, and business valuations. Tom is a certified valuation analyst. A P R I L
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F E AT U R E Mitigating Cash Flow Issues by Serving a Preliminary Notice by Patrick Hogan, Handle.com
Construction companies are highly vulnerable to cash flow issues. In the construction business, parties get paid in full only after they finish working on a project, and one late payment can snowball into bigger financial problems. Contractors, subcontractors, and material suppliers must therefore manage their cash flow efficiently to prevent fatal cash flow issues from happening. Fortunately, there are many ways to mitigate cash flow problems and prevent them from developing into major money issues. One way of doing so is to serve a valid preliminary notice for every project that you work on. Preliminary notices are documents that are served on upper-tier parties such as property owners and general contractors. They typically contain basic information about a construction participant’s role in a project, and also about the basic payment rights that construction stakeholders have. If you are a construction party looking to keep your cash flow issues at bay, here are some reasons why serving a preliminary notice can help you do just that:
You become more “visible” to higher-tier parties. “Visibility” is important in construction, especially in large-scale projects. Property owners and contractors can easily lose track of which parties are working on their projects, and this can lead to missed or late payments. When you serve a preliminary notice, you get the attention of upper-tier parties. You inform them that you are working on their project, and they become aware of what you do and how much you expect to get paid. Serving a pre-lien notice is therefore also a good way to open communication lines among different construction participants. Note that the deadline for serving a T H E
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preliminary notice varies per state, but these notices are usually served at the beginning of a project. You want to be visible to high-tier parties early on before any major issues come up.
You get paid quicker. Preliminary notices typically contain statements that illustrate your willingness to record a mechanics lien in case you ever needed to recover your hard-earned payment. If you serve a preliminary notice on a property owner and other stakeholders, you essentially give off the impression that you are strict and conscientious in pursuing payment from delinquent clients. Serving a pre-lien notice therefore demonstrates your diligence and seriousness about getting paid right. And when property owners know that you do not take late payments lightly, they are more likely to prioritize your invoices. Having your invoices on top of the list can help you get paid quicker. In an industry like construction that is notorious for payment delays and disputes, getting your invoices prioritized will be a huge help in ensuring that your cash flow is consistently in good health.
You track and manage your paperwork better. It is a good business practice to make serving a preliminary notice part of your standard operating procedures. As soon as you secure a new project, you must gather the information needed to complete a preliminary notice and serve it as soon as you begin working. When you streamline your business’ process for preparing and serving a prelien notice, tracking and managing your other paperwork efficiently will follow. Other documents such as the notice of intent to lien will be served on time, and you are also less likely to send out your invoices late. C O M P A S S
Being a well-oiled machine when it comes to serving out paperwork is an important key in maintaining the health of your cash flow. If your books are disorganized, your invoices will not be served on time and your clients will pay you late. You may also miss the deadlines related to filing a mechanics lien, which can lead to your losing your lien rights.
You protect your right to filing a mechanics lien. In most states, serving a preliminary notice is a required step before any party can file a valid mechanics lien. This is to ensure that owners are aware of your participation in a project, and to allow them to step in before mechanics liens get filed. Owners are more likely to settle outstanding debts once a mechanics lien has been recorded. To protect your lien rights, you should therefore ensure that you serve the appropriate preliminary notices so you can record a mechanics lien if you need to. Keep in mind that filing a mechanics lien is one of the best methods that you can use to recover payment from clients. Be sure to serve a preliminary notice so you have the option of recording a mechanics lien, and so you can protect yourself from potentially fatal cash flow issues. About the Author Patrick Hogan is the CEO of Handle.com, where they build software that helps contractors, subcontractors, and material suppliers with filing documents like preliminary notices to avoid late payments. Handle.com also provides funding for construction businesses in the form of invoice factoring, material supply trade credit, and mechanics lien purchasing. A P R I L
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The following are important coverage considerations before executing a sub-contract agreement with an upper tier.
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DID YOU KNOW ? Why Is the Insurance Market Hardening? by Gary R. Semmer, CIC, CWCAC, AssuredPartners, Inc. The Construction Insurance market has been firming up for the past two to three years driven by several factors including higher General Liability jury awards/ settlements for construction injuries, Auto Liability awards based on distracted driving, and Property/Equipment climate related claims caused by catastrophic events such as Hurricanes, Tornados, Wildfires and Polar Vortex (freezing) conditions in the northern sections of the country. These factors have caused Insurance Carriers to restrict writing certain types of coverage, reduced their capacity for higher Umbrella/Excess Liability limits and increased pricing on General Liability, Business Auto, Umbrella/Excess Liability and other lines of coverage. Based on both Industry and our AssuredPartners construction data, we’re seeing General Liability rate increases in the 8% to 12% range, Business Auto 10% to 15%, Umbrella/Excess 15% to 20%, Employment Practices Liability 12-15% and Cyber Liability 10-12% depending on type of Contractor, size and scope of operations, geographic area, and individual Claim/Loss experience. Clearly, you can’t control the external factors, but there are things you can do to hedge against market conditions to keep your “Total Cost of Risk” (TCOR): Premiums + Claims + Deductibles + Risk Management Expenses/ Construction Revenues = .0075% to 1.5% (acceptable range) to maintain your competitive advantage. Let’s explore the “best practices” of a Risk Management program to achieve these results: 1. Safety Program/OSHA Compliance: Review every element of your program including Safety Manual, Safety orientation, Safety training, and OSHA compliance with your Safety Director or other responsible party. If you use a 3rd Party Safety Consultant, consider having a Mock OSHA audit performed to get ready should you get pulled into an
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OSHA situation and to avoid steep fines. Lastly, share this with your Insurance Carrier’s Loss/ Risk Control Consultant to show you’re doing everything possible to mitigate risk. 2. Claims Management: Review your past five years of Loss Runs/ Claims History for frequency trends and severity claims to determine how you can avoid them in the future. In addition, you want to make sure older claims are closed out and if there are open Reserves, they are not overstated given the facts surrounding the claim. You should also review your Workers Compensation Experience Modification Rating (EMR) worksheet to make sure the Payrolls and Incurred Losses are properly stated to assure your EMR is correct. 3. Contract Compliance: Set up a standard contract review process to make sure your Insurance program “aligns” with the Insurance requirements in the contracts you’re signing to avoid any surprises, and so you don’t incur any additional insurance costs. 4. Renewal Preparation: This is becoming an “ongoing” process with the steps above to put yourself in the most favorable position as you start the renewal process three to four months prior to your policy expiration dates. • First step is to meet with your current Insurance Broker to go over your Renewal updates (Payrolls, Sub-Work, Equipment & Vehicle changes, etc.) along with any updates on Safety/ OSHA compliance, Open Claims and other changes to your Risk Management program which will make you look favorable to the Insurance Carrier underwriters. • Next, based on market conditions you need to discuss what your current Carrier(s) Renewal appetite is for you and whether you need to seek alternative Proposals. If your current Carrier is going to restrict coverage, require higher deductibles or retentions, or increase rates outside of the normal ranges, then ask your
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Broker to select two to three Insurance Carriers who fit your risk profile, and to prepare a Submission to them with a deadline of 3 weeks prior to renewal to evaluate their Proposals. • If your current Broker is unable to do this or lacks Insurance market access, it is time to seek out other Brokers with Construction market expertise and resources to represent you in the marketplace. We generally recommend interviewing no more than three Brokers and then determine which firm is “best” suited based on their ability to help you manage your Risk Management program and obtain the best terms possible in the marketplace, and then make a change. 5. Alternative Marketplace: In going through the renewal process you may find you are in a better position to take on more risk by securing higher deductibles or retentions. Conversely, you may be ready to have a Construction Captive feasibility study performed to determine how a Group or Single Cell captive can benefit you over the next five years. At AssuredPartners, we represent over 20,000 Construction clients nationwide with 200 offices to serve you, along with an experienced team of Construction Professionals to help you achieve your lowest possible Total Cost of Risk (TCOR).
About the Author: Gary Semmer, CIC, CWCA is executive vice president of AssuredPartners, Inc. Gary has considerable insurance & Risk Management experience in construction, real estate and non-profit industries. He is involved with many insurance and risk management organizations and has served on the Associated Risk Managers International Board of Directors and was recently President of the Associated Risk Managers of Illinois. He has also served as president of the Independent Insurance Agents of Illinois, and was Chairman of the Federal Governmental Affairs Committee. Contact us at asa@assuredpartners.com
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F E AT U R E Managing Cash through AI in the Construction Industry: Five Lessons for Leaders by Mark Marone, PhD., Dale Carnegie and Associates The construction industry has entered a period of profound change, driven by digital transformation including the implementation of artificial intelligence (AI), arguably on a scale unlike anything seen before.¹ A study by Dale Carnegie Training found that 67% of employees say they are already being impacted by AI in their roles or expect to be within the next five years². The power of AI is being applied across nearly every industry, bringing disruption and intense pressure to change — for organizations and employees alike. Cash Management — the collection, disbursement, investment, and control of funds — has become more critical than ever to successful construction leadership. And while the goals of Cash Management remain constant — controlling cash to ensure new initiatives succeed — the view of change itself has shifted. Combining the latest techniques in Change Management with the age-old system of Cash Management through AI is in its infancy. Here are five lessons construction executives need to pass on to those handling the cash.
Lesson 1: Transparency from the beginning is essential. AI in the workplace can be a sensitive subject. It’s a powerful tool that often results in significant impact on work roles and increases peoples’ feelings of insecurity. Dealing with money is also a sensitive subject . Adding the complexities of machine learning to search for patterns allows organizations to catch potential fraud faster than humans. When it comes to Cash Management, the use of advanced AI can help to prevent costly losses with all involved in the process. Recognizing the negative impact that fear has on productivity, leaders may be tempted to develop plans in secret and
conceal the effect and scope of AI until the implementation is well underway. But excluding employees is a big mistake. Today companies must recognize and value customers and employees as change partners and understand the importance of involving people in designing plans from the beginning. In addition, deep institutional knowledge of the tasks to be automated is often essential for training AI, and it can be challenging to get that from employees without being upfront about the reasons behind it. Perhaps most of all, organizations must be transparent about their plans for implementing AI, because the risk of damaging trust with employees is too great. To avoid that kind of outcome, leaders must be transparent, willing, and skilled at engaging the people who are going to be affected, with the goal of helping them see how they can fit into plans for the future. Training in increasing employee engagement starts from the top as an initiative.
Lesson 2: Top executives need to be involved from the beginning in technologyrelated change initiatives — whether they like it or not.
Technology projects, therefore, sometimes involve critical strategic decisions and may require the assistance of top leaders to align the broader organization and enable implementation. A McKinsey report establishes the need for executive involvement in AI where “these emerging technologies focus on helping players overcome some of the engineering and construction industry’s greatest challenges, including cost and schedule overruns.”³ Getting senior leaders on board early with cash management AI tools is a key to success. Keeping them visibly involved throughout technological change initiatives helps ensure projects stay aligned to the broader strategy of the organization.
Lesson 3: Don’t assume managers will jump on board. As research has shown, supervisory support has a strong positive effect on change outcomes.⁴ The involvement of mid-level and front-line management is critical: they are responsible for creating a psychologically safe environments for learning during change, building confidence, setting goals, praising early wins, providing
There was a time when a technologyfocused project could be delegated to the IT department and even remain poorly understood by top executives upon implementation, so long as it all worked as planned. In these cases, those at the top of the organizational hierarchy often stayed aloof. They did not see themselves as needing to be part of the change — certainly not when it came to technology, an area where many executives lack deep expertise. No more. Now, technology is often inextricably intertwined with customers’ experiences with a product or service.
¹ AI Transforming The Construction Industry, Kathleen Walch, Cognitive World Contributor Group, Forbes.com (2020). ² Survey of 3586 full-time employees across 11 countries conducted by Dale Carnegie Training, 2019. ³ Artificial intelligence: Construction technology’s next frontier. Jose Luis Blanco, Steffen Fuchs, Matthew Parsons, and Maria João Ribeirinho. McKinsey & Company. (2018). ⁴ Ten Have, S., Ten Have, W., Huijsmans, A.-B., & Otto, M. (2017). Reconsidering change management: applying evidence-based insights in change management practice. New York, NY: Routledge.
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feedback and making employees feel valued and appreciated. Their attitudes toward technology changes can positively influence those they lead, and for that to happen, these leaders need to be convinced of the value of the technology and its application. The problem? When it comes to advanced technologies such as AI, these mid-level leaders have the same fears as others. As shown in the graph, many are at least moderately worried that AI could lead to their own job being eliminated, and they share the same privacy, security and bias concerns as employees without direct reports. Where there is fear, there’s bound to be resistance to change. The solution is often as simple as demonstrations and training to overcome the fear.⁵
Lesson 4: Don’t wait to begin training employees. One of the biggest challenges to implementing AI is finding people with the right skills. While in a survey of CEOs by PwC more than three quarters (76%) were concerned about the lack of digital skills, even more — 91% — said that they needed to strengthen their organization’s soft skills.⁶ Accenture agrees, citing skills such as creativity, teamwork and empathy as crucial — along with technical skills.⁷ Globally, 46% of CEOs say their organization is primarily relying on significant retraining and upskilling — rather than hiring from competitors or outside the industry — to close the gap. That will require organizations to assess for needed skills in a systematic way and plan ahead to ensure the talent is ready to perform.⁸ As a large online bank in the U.S. discovered, regardless of which skills require development, preparing people to take on new responsibilities should be built into the change initiative from the start. The bank has explored AI-based solutions over the past several years, seeking to introduce human-like experiences as customers interact with their financial service organization online and providing a conversational experience that both feels natural and aligns with bank’s brand identity
and voice. To stay in the forefront of your market, start filling your bench with skilled workers now. “The idea of reskilling employees is that, if you never start, you will never know what skills they are really going to need. So, you are doing a disservice to your organization by waiting,” says their Executive Director for Infrastructure Operations.
Lesson 5: Leverage informal advocates. While leaders have their formal role to play, informal advocates can also have a powerful effect on how quickly change happens.⁹ Leveraging the social influence of those who embrace the idea first can help build momentum. Companies earn the right to do that by protecting trust, being transparent and demonstrating a commitment to training people for the future. Informal advocates are people who already have trusting relationships with others and who have a positive attitude toward the change. Organizations can train the interpersonal skills to encourage trusting relationships among their workforce. They also control whether they initiate change in a way that garners the maximum initial support. But they can’t designate informal change advocates. They can, however, support informal advocates and magnify their influence:
• Identify employees who have informal
complexity to the challenge for leaders. For most in the construction industry, the real goal is no longer to get through the next technology initiative, but rather to develop an agile and resilient workforce. Equipped workers embrace change with confidence and a positive attitude. Transparency in handling funds, involvement of leaders at all levels, proactive training for impacted employees and support for informal advocates are all important considerations for achieving the full potential of today’s technology – which depends on a successful partnership between humans and machines. About the Author and Editor Author, Mark Marone, PhD. is the director of research and thought leadership for Dale Carnegie and Associates where he is responsible for ongoing research into current issues facing leaders, employees and organizations world-wide. He has written frequently on various topics including leadership, the employee/customer experience and sales. Mark can be reached at mark.marone@dalecarnegie.com. Editor, Robert Graves, MBA, is a Dale Carnegie Certified Trainer for Rick Gallegos and Associates. His focus is Sales Leadership and Customer Service. He is the author of “Making More Money with Technology.” He often writes on the evolution of Marketing and Sales. Robert can be reached at robert. graves@dalecarnegie.com.
influence.
• Communicate to keep them well-
informed so that they have the facts when talking with their peers.
• Give them a chance to spread their
positive influence by inviting them to do more cross-functional work. Invite these informal advocates to serve on committees or teams identifying and working on future projects, bringing their experience and conviction from earlier deployments to new areas.
The Bottom Line While much of the classic cash management wisdom remains valid, people’s emotional response to technological advances (especially AI,) has added
About Dale Carnegie: Dale Carnegie is a global training and development organization specializing in leadership, communication, human relations and sales training solutions. More than 9 million people around the world have graduated from Dale Carnegie training since it was founded in 1912. Through franchises in over 90 countries and in all 50 states, Dale Carnegie’s mission is to empower organizations to create enthusiastic and engaged workforces by fostering confidence, positivity, and productive, trust-based relationships.
⁵ Managing Fear of Technology in the Workplace. The Wall Street Journal (2018). ⁶ 21st CEO Survey: The Talent Challenge: Rebalancing Skills for the Digital Age. PwC, 2018, www.pwc.com/gx/en/ceo-survey/2018/deep-dives/pwc-ceo-survey-talent.pdf. ⁷ Khan, N., & Forshaw, T. (2017). New Skills Now: Inclusion in the digital economy. Retrieved from https://www.accenture.com/t20171012t025413z__w__/in-en/_acnmedia/pdf-62/accenture-newskills-now-report.pdf ⁸ 22nd Annual Global CEO Survey: CEOs’ Curbed Confidence Spells Caution. PwC, 2019, www.pwc.com/gx/en/ceo-survey/2019/report/pwc-22nd-annual-global-ceo-survey.pdf. ⁹ Katzenbach, J. R., & Khan, Z. (2010, April 6). Positive Peer Pressure: A Powerful Ally to Change. Retrieved from https://hbr.org/2010/04/positive-peer-pressure-a-power T H E
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F E AT U R E In the Midst of Chaos, There Is Also Opportunity... ...or Examining the Upside of the Upside Down by Gregg Schoppman, Principal, FMI Sun Tzu, the author of The Art of War, was a military strategist and tactician that lived thousands of years ago. Yet he is arguably one of the most studied individuals by military minds, business leaders, coaches who leverage his countless principles and theories to drive or optimize for success. While there are many barbaric and insidious strategies in Sun Tzu’s mantras, the quote “In the midst of chaos, there is also opportunity,” appears to strike a chord in these challenging times. Most likely referring to a military force striking an enemy during a time when their forces appear in disarray, we can all use this refrain as businesses attempt to craft a new strategy amidst these challenging times.
COVID-19 has taken so much. Whether it is the loss of life and millions of sick individuals, or the deeper economic ramifications of the “Post-COVID-19 Shutdown” that continue to evolve. Given our druthers, I am sure every human would opt for a year where no pandemic required life to alter so greatly. However, Sun Tzu’s quote might have a deeper meaning for the world. English theologian and historian, Thomas Fuller, had a similar quote that has a similar theme – “It is darkest before dawn.” Great leaders recognize the pain and agony of any horrible situation but it is the greatest of them that identify the positive to create opportunity.
The Markets Jay Bowman, Principal and Leading Researcher at FMI, has used another descriptor that may provide context for future strategy. “Bears and bulls exist in all economies.” Bowman references this quote when examining the last great recession: His thesis is that even during the Great Recession, there were markets that thrived and grew. So much of the first half of 2020 has been focused on playing defense, whether it be against COVID-19 or simply battling the market forces. Strategies are tested all the time and markets are hardly static. In fact, there will be opportunity for nimble and agile businesses to
Figure 1 - 2006- 2011 Percent Change in Construction Spending Put in Place (US Total) SOURCE - FMI
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be successful in the new normal. However, the great businesses do not sit still and wait for the market to come to them. There is no crystal ball that will help these businesses prognosticate on what the market foretells in the coming months, but the successful ones will act decisively and with purpose.
Productivity Two inalienable truths have become evident in 2020 – a deeper appreciation for statistics and hygiene. As the world learned about distribution curves (and flattening them) it also became keenly aware of hygiene principles that we probably should have had before COVID19. That being said, the construction industry has seen an amazing forced metamorphosis in a short time. Starting a day’s work has been supplanted with a new set of rules related to hygiene and distancing. On the surface, the tedious yet necessary steps could be viewed as productivity killers. However, businesses are refocusing on elements like crew size, proper planning and activity prioritization that are more deliberate. Countless times, the phrase “Activity does not equal productivity” provides a subtle reminder to field teams that ambling around a jobsite without purpose is costly. The rules will require businesses to rethink their cost structure, but it will also help create opportunities for improvement. Not too mention, we probably needed to refocus on the jobsite cleanliness anyway.
Technology It is a safe assumption that the world is ready for more sociability and less “virtual meeting.” However, as bandwidths were taxed to the hilt as town halls, production meetings, webinars and trainings were leveraged,
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the construction industry learned a valuable lesson. Technology has a place and done right, teams can be as or more productive than traditional means. Technology is also not limited to these millions of online meetings. In fact, these collaborative tools are just the tipping point for other advancements to enable better productivity, better quality, safer projects and a better experience for all. While the desire is to get back to normal, organizations should also be more focused on making that “normal +.”
Cashflow Focus The balance sheet is another financial instrument that leaders have consulted with regularity recently. As businesses ``hunkered down”, controllers and CFO’s poured over the data to explore the firm’s resiliency. How long and how deep could businesses thrive, surviving on the cash in the business. Additionally, collecting outstanding receivables was another area of focus. For some readers, these last two statements appear “ordinary.” Put another way, should we not have been doing this all along? Similar happenings occurred during the last recession. Businesses become hyper focused on cashflow and cash reserves. It was as businesses ``got busy”, that they became distracted. This is an opportunity that should persist long after the pandemic has left our midst. It shouldn’t take something like this for businesses to forget the basic tenets of healthy best practices.
Business Expansion and Growth Lastly, it is clear that some businesses will thrive while others may languish. Some may languish through no fault of their own, victims of horrible circumstances. When
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examined in totality – markets, productivity, technology, cash flow – best in class firms will be poised to leverage opportunities either created by businesses exiting a sector, geography, or niche or capitalize through acquisition, assuming there is something marketable in a target. In the end, the market will continue to have opportunities and the firms that maintain their agility and wherewithal will be in the right position. Survival of the fittest or some other Darwinian principle will dictate who succeeds. Those firms who find the upside in the upside down will be victorious. About the Author
As a principal with FMI, Gregg specializes in the areas of productivity and project management. He also leads FMI’s project management consulting practice. He has completed complex and sophisticated construction projects in the several different niches and geographic markets. He has also worked as a construction manager and managed direct labor. FMI is a unique and fast-growing firm of professionals passionate about creating a better future for engineering and construction, infrastructure and the built environment throughout North America and around the world. For more information on FMI, please visit www.fminet.com or contact Schoppman by email at gschoppman@fminet.com.
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F E AT U R E Stopping Unfair Subscriptions in Construction Technology by Chad Pearson, Plexxis Software, Inc. As a former police officer I tend to be more sensitive to predatory behavior. An infallible truth you learn in police work is that wherever you find opportunity, you find honest people serving others, and dishonest people serving themselves (at the expense of others). So that said, there is immense opportunity in construction technology and underneath all the great people serving this opportunity, there is a predatory trend of unfair subscriptions. Thankfully, they are simple to spot and stop. Unfair subscriptions have an imbalance of rights and obligations that can include a lack of transparency of total cost to onboard, misrepresentation of products and services and/or no reasonable options for cancellation without penalty.
Consider this— Subscriptions were designed for instant value products such as magazines, Netflix or Amazon, where subscribers enjoy value as soon as they subscribe. Subscriptions were not meant for complex products that require labor-intensive set up, have no guarantee of adoption and that do not provide instant value. People would never pay subscription fees to magazines, Netflix or Amazon if the content, entertainment and distribution centers were not ready upon subscription. In construction technology however, subscriptions fees ARE being charged for complex software BEFORE it is set up, configured or performing as sold.
How did unfair subscriptions become a trend? Opportunistic investors behind the Construction Technology M&A T H E
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explosion compelled some technology providers to apply simple subscription models to complex products in order to create predictable financial spreadsheets in an unpredictable industry. This predatory trend hurts the industry as it shifts 100% of the risk of adoption onto contractors while investors collect and project revenue with certainty, even if the products are not delivering the value that was promised. Like the scales of justice, balance needs to be restored through fair terms and obligations. You can restore fairness to subscription by including the following three terms in your subscription agreement: 1. Define ‘go-live’ and defer subscription fees until the software is live. An example of how to define go-live for a typical construction accounting software would be: • AP payments are paid through software • Payroll runs (and/or) Payroll service export is completed through software • Client is posting to the GL • Complete entry of historical AIA/ progress billings details to enable accurate retention billing If you are considering other technology, I recommend collaborating with your prospective technology partner to define go-live in a way that is fair. 2. Establish a fair cancellation policy without penalty. At our company, Plexxis Software, we allow customers to cancel at any time. We want to keep customers through our service, not because they are contractually obligated to C O M P A S S
us. At minimum, a fair compromise is 'at least' documenting promises made and defining key milestones in order to deliver what was sold in the sales process so you can establish an acceptable cancellation policy. 3. Ensure your technology partner provides detailed plans for adoption, including a complete list of tasks, commitments, milestones, skills and hours required. (NOTE that tasks, commitments, milestones etc. apply to both technology partner AND client) Being aware of positive trends enables you to support them. Being aware of predatorial trends enables you to defeat them. Doing both enables you to help the industry evolve faster, more effectively and in the greatest way possible. About the Author Chad Pearson brings a unique perspective to AEC mixing 13 years in ConTech with careers in law enforcement and over 30 years competing in combat arts and coaching top professional fighters. At Plexxis Software, Chad is the Dir. Biz Dev and Dealer of Truth & Happiness and help subcontractors unite their teams with technology. Chad also coaches Plexxis teammates on high performance during chaos and critical stress. Chad's formal training includes a Bachelor of Arts, Crisis Resolution, Police Defensive Tactics, Use of Force, CBRN Response (Chemical, Biological, Radiological & Nuclear), emergency response, criminal investigation and outlaw motorcycle gang liaison work.
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1 FORM. MULTIPLE QUALIFICATIONS. Join us and take part in bringing standardized qualifications to the industry! COMPASS aims to streamline the data collection process and help Subcontractors satisfy multiple qualification requests with our standardized form (the 1Form); eliminating the need to complete multiple unique forms. We are engaging General Contractors and other industry participants to adopt standardization, and would benefit from your support. If you agree with standardization in the qualification process, please show your support by filling out this short survey
https://forms.gle/FWPJrfaXZMKcGfer7
1-800-689-6819 info@compass-app.com http://compass.bespokemetrics.com
Upcoming Virtual Events WEDNESDAY, MAY 12, 2021, 12:00 PM – 1:00 PM (EDT) Planning for Recovery for SMB Contractors As more regions start ramping back up, projects get back on schedule, and more opportunities are available, 2021 is all about planning and recovering from the 2020 jolt. Join Procore’s Michelle Turner as she interviews Scalfo Electric’s Joelle Macrino on the ways that Small Business Specialty Contractors can embrace the new standard of digital transformation in the construction industry to stay ahead of the competition. Presented by: Scalfo is a third generation designbuild electrical contractor that specializes in healthcare, commercial, industrial, water treatment facilities and governmental construction. Procore solutions is purpose-built to help Small Business Specialty Contractors maximize profitability. REGISTER HERE.
WEDNESDAY, MAY 19, 2021, 12:00 PM – 1:00 PM (EDT) ASA Day with SBA
The U. S. Small Business Administration’s Surety Bond Guarantee (SBG) Program helps subcontractors get bonds up to $10 million! Attend ASA Day with SBA to: • Get up to 2X bonding capacity with SBA bond guarantees • Obtain bonds even if you’re starting out or recovering from economic impacts • Compete for bigger public & private contracts ASA Day with SBA will include a discussion of how the SBG Program can increase your contracting opportunities, dispel myths surrounding the program, and give you the opportunity to obtain solutions to your specific bonding challenges from SBG Program leaders. SBG Program staff available to answer your bonding questions include Peter C. Gibbs, Director of the Office of Surety Guarantees; Tamara E. Murray, Underwriting Marketing Specialist; and Area Office Directors Earnest L. Knott, Jennifer Vigil, and Catharine Powers. REGISTER HERE.
WEDNESDAY, MAY 26, 2021, 12:00 PM – 1:00 PM (EDT) Does Your Insurance Program Cover All of the Insurance Requirements in the Contracts You’re Signing?
Make sure you’re knowledgeable about insurance needs for contract requirements for all circumstances. Gary R. Semmer, CIC, CWCA, Executive Vice President, AssuredPartners, Inc. will facilitate this discussion. Gary is involved with many Insurance and Risk Management organizations and has served on the Associated Risk Managers International Board of Directors and was recently President of the Associated Risk Managers (ARM) of Illinois.
Coming Up in the May 2021 Issue of ASA’s
Theme:
All About Contracts • When the Tide is High, All of the Boats are Up… However, When the Tide Goes Out, We See Who is Skinny Dipping • Unwrapping Wrap-Up Insurance policie s Unde rstanding OCIPs and CCIPs. • Recovering Costs & Time for Materials Price Increases and Supply Chain Delays
Look for your issue in May. To access past issues of The Contractor’s Compass , please click here. For questions about subscribing, please contact: communications@asa-hq.com
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