Utility & Transportation
contracTOR
100 Years of connection:
The henkels & mccoy story of innovation and progress
december 2023
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de i s n
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l ssfu e c c u ost s event h t o njd ruiting & a c ut try rec s indu
Utility & Transportation Contractor | december| 2023 1
president’s message
From the desk of: gerard burdi
A
s we approach the Holiday Season and I settle in as the Association’s President, I have been able to reflect on this past year’s events and accomplishments. Our Association’s year has once again been successful. This year’s Convention was another successful event with an attendance of well over 1,000 participants. The events unfolded seamlessly as a result of the terrific planning of the Association's staff. Their efforts are just another example of the quality staff that we have. Our PAC Auction was well attended and proved successful as well. I thank everyone who participated and ask all Association members to do what they can to support our PAC. Membership development has been quite busy as we approach past President Ely’s goal of 50 new members. The Membership Development Committee, led by Jim Coddington, has done an admirable job and I appreciate all their hard work. Another initiative of Glenn Ely is the NJDOT/UTCA Construction Recruitment Event that was held in September at NJIT. This inaugural event was hosted by NJIT. President, Dr. Teik Lim and Assistant NJDOT Commissioner, Parth Oza, spoke about opportunities for students in the infrastructure space. The event was very well attended, and I thank Glenn Ely for his initiatives. On January 10, 2024, there is the CIAPNJ’s 22nd Annual Career Fair. This is another great opportunity for students to get involved in our industry and I urge everyone to participate. Our never-ending quest for infrastructure funding
2 Utility & Transportation Contractor | december | 2023
has had some good news recently. New Jersey recently received $425 million of additional funding from the Federal Highway Administration that will provide some relief to NJ taxpayers. The NJ Infrastructure Bank had a very successful end to its Fiscal Year and is poised to exceed $1 Billion of funding in FY24. Moving forward, our need to get reauthorization of NJ’s Transportation Trust Fund looms large and we must continue to be diligent, on the Federal level, to maximize our Clean Water Funding. UTCA recently held the Owners/ Engineers Reception in Atlantic City during the League of Municipalities Convention, as they have each year. This provides a great opportunity for members to meet the people we work with, both project owners and the engineering community.
years of success.
Our cover story this month features Henkels & McCoy and their celebration of 100 years in business. This is an outstanding achievement, not often witnessed in our industry. Congratulations to Henkels & McCoy and wishing you many more
I want to thank everyone for their support of the UTCA throughout the year. Wishing everyone Happy Holidays and a safe and successful New Year.
Gerard L. Burdi
CONTENTS
Cover story 44 100 years of connection: the henkels & mccoy story of innovation & progress
44
DEPARTMENTS 2 President’s Message 7 Financial Overview 17 Legal Dig 25 Accounting Corner 33 Legislative News 55 Labor relations
NEWS 65 jja trades diesel hammer for junttan piling rig on navy
yard project 75 utca & njdot host successful industry recruiting event
79 helping employees prepare for student loan repayments 85 achieving profitability in 2024
Published Bimonthly During 2023
2107 Route 34 South Wall, NJ 07719 PO Box 728 Allenwood, NJ 08720 PH: (732) 292-4300 FAX: (732) 292-4310 www.utcanj.org
Publisher: Robert A. Briant, Jr. Editor: Helene Nasdeo Editorial Contributors: Ryan Sharpe, Dan Neville Advertising Manager: Helene Nasdeo Production/Graphics: Lauren Hagan, Helene Nasdeo Circulation: Helene Nasdeo Printed By: American Plus Printers Affiliations: ARTBA, Clean Water Construction Coalition, Water Infrastructure Network UTILITY AND TRANSPORTATION CONTRACTOR (ISSN 0192-4843) is published six times a year by the Utility and Transportation Contractors Association of New Jersey, 1670 Highway 34 North, Farmingdale, NJ 07727. Periodical postage paid at Farmingdale, NJ and additional mailing offices. POSTMASTER: Send address changes to UTILITY AND TRANSPORTATION CONTRACTOR, PO Box 728, Allenwood, NJ 08720.
Utility & Transportation Contractor | december| 2023 3
by: kevin ellman
P
oints to Consider When Hiring a Financial Advisor 1. Seek out someone who is an excellent listener and asks you many questions.
2. It is important to find and work with someone who is willing to put your interests before their own. 3. The only way to tackle a multi-faceted long-term financial project is to have a customized plan process that can help you move forward step-by-step. 4. It can also be extremely helpful if they offer some type of complimentary consultation. 5. You should understand who you will be working with and what kind of services will be available to you. 6. A written agreement is important to have between you and your financial advisor. I believe the number one reason that most people work with a financial advisor is to help them achieve their financial goals. It is important to keep in mind that in order for this relationship to be successful, it should be an ongoing, long-term relationship. At the outset, it can be helpful to have realistic expectations and to clarify for yourself what you are looking for in a financial advisor. Stephen Covey said that one of the seven habits of successful people is to seek to understand and then to be understood. Before your advisor can help you craft a plan designed to achieve your goals, they should strive to understand exactly what you hope to accomplish and exactly what resources are at your disposal. Seek out someone who is an excellent listener and asks you many questions. They should obtain all the facts surrounding your particular situation before they even begin to consider developing a plan. I believe it is important to find and work with someone who is willing to put your interests before their own. Take the time to understand the financial arrangement with your advisor. Some advisors today work on a fee basis. This typically involves a flat fee for developing a plan and perhaps an ongoing fee for managing assets. Most insurance products are heavily regulated and also provide fee compensation. Whatever the arrangement, there should be full and complete disclosure of all fees and expenses. Financial planning or wealth management in today's world is a complicated proposition. Some of the areas of focus are estate planning, business succession planning, asset management, retirement planning, insurance management and employee benefits. Many affluent individuals today own multiple businesses, real estate and investments. I believe the only way to tackle a multi-faceted, long-term financial project is to have a custom-
ized plan process that can help you move forward step-by-step. These steps should include getting a clear understanding of your current situation, considering all your options, developing the actual plan, implementing it so that the plan becomes a reality, documenting it so that you understand exactly what happened and how it works, and finally, and most importantly, keeping your plan on track with regular updates and reviews. Because choosing a planner is such an important choice with significant long-term implications, I feel it is important that you pick the right person or team. It can be very helpful to start with recommendations from a trusted friend or your accountant or lawyer. If you have an opportunity to see your potential advisor speak in public, this is often a good way to understand their approach to financial planning or wealth management. I believe it would be ideal if you're dealing with someone who has many years of experience and has been recognized as a specialist in the industry.
Financial overview
finding the right financial advisor
It can also be extremely helpful if they offer some type of complimentary consultation. This could include an initial consultation where you can develop a mutual understanding of your needs and their capabilities to see if there's a fit. Some advisors offer an initial report that provides an assessment of your current situation and a general description of the kind of work they would do for you. This can be a good way for you to test-drive working with the advisor to see if you think it would be a good fit for you. Most advisors work as part of a team that includes support staff to assist with planning and provide ongoing services. You should understand who you will be working with and what kind of services will be available to you. If you can meet the entire team, that would be ideal. Finally, I believe a written agreement is important to have between you and your financial advisor. A financial planning agreement will often spell out the financial goals you are seeking to achieve as a client and the services that the advisor will provide. You may remember Tom Cruise saying to Cuba Gooding in Jerry McGuire “help me help you!” Be forthright. Tell your advisor exactly what you expect, be completely forthcoming with all of your personal, business and financial information and make sure to ask any and all questions that occur to you. If you do all of this, I believe you will very likely have a satisfying and productive experience. Securities and investment advisory services offered through NFP Advisory Services, LLC (NFPAS), member FINRA/SIPC. Wealth Preservation Solutions, LLC is a member of Partners Financial, a platform of NFP Insurance Services, Inc. (NFPSI), which is an affiliate of NFPAS. Wealth Preservation Solutions,LLC is not affiliated with NFPAS and NFPIS.
Utility & Transportation Contractor | december| 2023 7
SALES OFFICE
WAREHOUSE AND YARD
325 Columbia Turnpike, Suite 308
308 North 14th Street
Florham Park, New Jersey 07932
Kenilworth, New Jersey 07033
TEL: (973) 325-3030
TEL: (908) 686-3852
FAX: (973) 325-7360
7:30 A.M. - 4:30 P.M.
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EMERGENCY HOURS BY REQUEST
EMERGENCY HOURS BY REQUEST
SUCCESS THROUGH SERVICE SINCE 1927
www.brentmaterial.com WBE Certified (NJ, DE, NY/NJ Port Authority, NYC, NY State, DASNY) WBENC, WOSB, SBE Certified (NJ)
• WATER WORKS •
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CONGRATULATIONS TO HENKELS & McCOY CELEBRATING 100 YEARS IN CONSTRUCTION
• STORM DRAINAGE •
SALES OFFICE WAREHOUSE AND YARD 1271 Glassboro Road
Williamstown, New Jersey 08094
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CATERINA CA TERINA SUPPLY SUPPLY INC.
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EMERGENCY HOURS BY REQUEST
TEL: (856) 728-0171
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By: nicholas a. sullivan, esq.
A
ll construction agreements provide provisions indicating how payment will be made to the contractor for the work performed under the agreement. However, there are different types of ways that contractors may be paid, including progress payments and installment payments. This distinction can have a major impact on the timing for receiving payment under the New Jersey Prompt Payment Act and the applicable statute of limitations. Recently, the New Jersey Appellate Division provided an understanding of whether payments were progress payments or installment payments. In making its decision, the Appellate Division closely reviewed the agreement and the intention of the parties. The facts of Bil-Jim Construction Company, Inc. v. Wyncrest Commons, LP, No. A-0173-21 (N.J.Sup.Ct.App.Div. Nov. 3, 2023) focus on the New Jersey Prompt Payment Act, N.J.S.A. 2A:30A - 1 to -2 and the standard contractual provisions under the American Institute of Architects owner/contractor agreement (AIA Document A101-2007).
Prior to the appeal, the trial court agreed, in part, with the arguments put forward by Wyncrest Commons, LP (“Wyncrest”) that Bil-Jim Construction Company, Inc.’s (“Bil-Jim”) request for payment for $176,079.876 in unpaid progress payments was time barred under the Prompt Payment Act. The trial court agreed that the contract between Wyncrest and Bil-Jim was an “installment contract” barring Bil-Jim from receiving the remaining amount owed by Wyncrest but the trial court found Bil-Jim was entitled to $41,691.40 in retainage. The Appellate Division rejected the installment contract theory and found Bil-Jim’s entire claim for payment accrued when the township engineer filed his report with the township approving the work. As such, the Appellate Division vacated the trial court’s decision and remanded the matter to the trial court. As a brief background, Bil-Jim entered into a standard form American Institute of Architects owner/contract agreement (AIA Document A101-2007) with Wyncrest in November 2010 to perform site work for Wyncrest’s seven building, eighty-four-unit apartment complex in East Windsor. As part of the Complaint, Bil-Jim claimed it was owed $217,777.21 of its $1,069,594.12 contract, $41,691.40 of which was retainage. Wyncrest did not dispute the work performed but argued that each progress payment due under the AIA agreement has its own six-year statute of limitations as an installment contract, all of
which were time barred before Bil-Jim filed its Complaint. Further, Wyncrest argued the claim for retainage accrued on the day the township engineer dated his letter to the township certifying the work completed by Bil-Jim. According to Wyncrest, Bil-Jim was not entitled to payment under the Prompt Payment Act and the AIA agreement.
Legal Dig
progress payments or installment payments: the answer is in the agreement
In reversing the trial court, the Appellate Division found “no legal basis” for treating the progress payments due under the AIA agreement as an installment contract. The Appellate Division noted the AIA agreement was unambiguous; final payment of the remaining balance was due when Bil-Jim fully performed all the work contained in the agreement. Specifically, the Appellate Division rejected Wyncrest’s argument that Section 5.1.3 of the AIA Agreement, titled “Progress Payments” was an installment provision because the provision stated that invoices were due on the 15th or 30th of every month and, according to Wyncrest, every payment had its own six-year statute of limitations. Citing other New Jersey cases, the Appellate Division rejected this argument from Wyncrest finding the payments under the AIA agreement were unlike annual payments on coupon bonds, periodic payments on promissory notes, and monthly payments due on equipment leases. Importantly, the Appellate Division found that Bil-Jim’s invoices to Wyncrest were not for separate transactions but were for payments to be periodically made on the presentation of invoices itemizing the work performed over the period of the agreement and the percentage of the work that remained to be completed. The Appellate Division held that terms of the AIA agreement were “clear beyond doubt” that all invoices and the progress payments were part of a single agreement. Further, there was no dispute by Wyncrest that Bil-Jim fully performed the agreement. The Appellate Division found Bil-Jim was entitled to payment of the remaining balance owed, interest, and attorney’s fees under the Prompt Payment Act. Finally, the Appellate Division addressed the issue of when the township received acknowledgement of the completion of the work prompting payment of the retainage from Wyncrest to BilJim. Wyncrest contended the township engineer dated his letter to the mayor and council approving the project on June 4, 2013 and that is the day the claim for retainage accrued. The Appellate Division rejected this argument finding the township engineer did not deliver the approval letter until June 18, 2013, which is the time the township became aware of the approvals and when retainage should have been released to Bil-Jim.
Utility & Transportation Contractor | december| 2023 17
Legal Dig
A crucial takeaway for contractors from Bil-Jim is an understanding of the provisions of form AIA agreement and the difference between installment provisions and progress provisions. Although installment provisions and progress provisions for payment may look and act similar, there are different statutes of limitations that can impact the ability of a contractor to receive delayed payments. Further, contractors should remember that the Prompt Payment Act permits successful parties to receive the money owed, interest, and attorney’s fees. Moving forward, it is critical for contractors to review contract language regarding the requirements for payment provisions under form and non-form contracts. About the Author . . .Nicholas A. Sullivan, Esq., is an Associate in the Cherry Hill office of Florio, Perrucci, Steinhardt, Cappelli, & Tipton, LLC. He may be contacted at nsullivan@floriolaw.com
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Constructing a WIP Schedule: Common Pitfalls and Best Practices By: Don Foster, CPA, CCIFP, Senior Manager, Withum Construction Services Team
The majority of companies within these industries use the percentage-of-completion method of revenue recognition, the most important factors being total contract value, job costs incurred to date and total estimated job costs as these factors drive the percent of revenue that is recognized as jobs progress towards completion. Job cost reports and WIP reports provide critical information about the current status of a job and can help accurately estimate how the job or project will finish from a cost and revenue perspective. These reports drive the financial results of these companies. When you are running multiple jobs at the same time, managing job costing can be difficult and is much more challenging but well worth the effort. Not accounting for job costing and the WIP schedule correctly can lead to a host of financial problems for owners, including cash flow shortfalls, profit fade and revenue recognition issues during the job cycle. As a company grows in size and takes on larger contracts, the risk factors multiply as the complexity of longer-duration contracts exponentially increases risk; however, the opposite is also true as the financial reward also becomes greater. Monthly financial statements are an ongoing tool used to manage a business and are typically a required deliverable for a lender or bonding company at least annually. In addition to potentially wreaking havoc on your finances, problems with job costing and the WIP schedule can be major red flags for these sureties and lenders. Therefore, accurate job costing reports and WIP schedules are imperative. Successful job costing can be a pivotal factor distinguishing a flourishing business from one facing financial distress. Equally important is the consistent monitoring of these reports in collaboration with your management teams, enabling prompt responses to emerging issues. Let’s look at a project over a three-year period to see how estimations can impact the financial results. The table below is the same project over three years using different estimated margins
in years one and two.
Using the examples above, you can see that in Scenario 1, the company is picking up too much profit in years 1 and 2 and has a profit fade in the final year, resulting in a project loss in that year. Scenario 2 has the opposite effect and did not pick up enough profit in years 1 and 2. Both scenarios result in an adjustment in the final year of the project and can be viewed as unfavorable. If you consistently have project fades, users of the financial statements will discount the profit margins you are estimating on open jobs as they can assume you believe your jobs to be more profitable than they actually are.
Accounting Corner
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very type of business is faced with unique complexities when it comes to achieving financial success, and the construction industry may be one of the most unique in terms of risk management. Among the most important accounting concepts for contractors, developers, and engineers to drive their success is understanding the importance of job cost reporting, which begins and ends with analyzing individual job performance, typically tracked on a comprehensive work in progress (WIP) report.
If you consistently have project gains, users of the financial statements will assume that your open jobs will finish more favorably than estimated and that you are conservative with your estimates. Accurately tracking performance throughout the life of a project is not only critical to your bottom line, but it provides users of the financial statements a comfort level that the information you are reporting is accurate and reliable. In order to ensure real-time reporting, companies require a truly integrated accounting and job costing software solution. It’s important to map out workflow processes to ensure labor, accounts payable invoices, purchase orders and subcontractor commitments are entered timely to ensure proper cutoff and distribution to the proper job allocation so an individual project’s profitability is measured accurately. Job costing provides information about each job so that management and finance teams can review and break down profitability by project for greater transparency. Most companies find that their costs break down into fairly small or fixed amounts. Financial exposure is largely through cost variations and budget overruns. Job cost reporting can consist of a comparison of actual job costs versus estimated job costs for each cost code and job. This makes analysis simple and quick when comparing project performance over time. The lack of detailed job cost reporting is ultimately why most
Utility & Transportation Contractor | december| 2023 25
contractors end up moving away from smaller accounting software solutions. The software options for contractors are vast, and the price tags vary based on size and features, but we’ll save that conversation for another day. While setting up and executing a job cost system can seem tedious and time-consuming, if you invest the time and money to set up a streamlined solution, it will be invaluable to your company’s financial performance and ultimately pay dividends in the future.
Accounting Corner
Regardless of specialty or company size, job costing is enormously beneficial and helpful to contractors in the following areas: • Financial Confidence: To maintain credibility with financial lenders, bonding agents and customers of the company must be able to successfully manage and forecast the outcome of their projects. Companies that cannot do this with confidence are going to find it increasingly difficult to perform effectively. • Job Management: With data from job costing reports, project managers and finance teams can better evaluate progress and efficiency as well as better motivate staff to reduce costs and increase output on any given project. If you cannot evaluate the profitability of a project until it is complete, you cannot properly manage risks in real time. • Claims Support: Job costing can provide support for contractual claims and change orders. The reports must provide specific details of the actual cost of identified variations and background for the claims, especially for time and material contracts. Recognizing the increased revenue on the WIP schedule depends on the likelihood that you will ultimately realize the increase in contract value. If you are likely to bill and collect on the claim, including the increased revenue in a timely manner will reflect a more accurate margin and a lower chance of sizeable job fades or gains. If you wait until the end of a job to include a change order, you will experience a profit gain, and if you include a change order in your WIP schedule that is ultimately denied, you will experience a profit fade. • Future Work: Cost reports can provide valuable information that helps estimators in bidding or pricing out similar types of work. These reports highlight and separate those variable costs that require special consideration, especially when dealing with custom projects or projects that are outside of your normal area of expertise. The WIP schedule will also allow you to track the amount of backlog on jobs started but not completed at a specific period in time, which is a critical component of managing resources such as labor or equipment. The following are common accounting errors that can appear in a company’s financial statements involving job costing: • Improper Job Costing Cutoff: Most contractors, developers, and engineers utilize the accrual basis of accounting, whereas costs are recorded in the period earned or incurred. The cutoff error arises as a result of omitting costs incurred in the period being reported on, usually due to delays in invoices being provided to the accounting department in a timely manner. To avoid this error, a process should be implemented in which costs incurred are recorded as liabilities in the period incurred or as
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accrued costs. • Misstatement of Estimated Job Costs: Errors occur most often because of poor estimating/forecasting, inaccurate actual costs accumulation or improper exclusion of revisions on change orders. To prevent estimating errors, compare actual costs to estimated costs on a monthly basis. • Overhead Allocation Inaccuracy: Most contractors, developers, and engineers use an overhead rate to allocate indirect costs (rent, utilities, depreciation, etc.) to individual jobs using a percentage multiplied by either direct labor costs or material costs. When the rate used is not monitored to assess whether it is an accurate representation of the company’s current overhead, project costs can be misallocated. This can result in your financials reflecting a sizable “unabsorbed overhead” figure on your profit and loss statement, which is an indicator to sureties and lenders that you may not know the true cost of performing your contracts. Even worse, if overhead costs are not reviewed and adjusted regularly, especially during an inflationary period like we have experienced the last few years, estimators will be using outdated costs when pricing jobs and the company could be left absorbing those rising costs and underbidding jobs at unprofitable margins. • Joint Venture Activity Incorrectly Posted: Joint ventures are common in the construction, developer, and engineering space, and proper accounting of job costs for the activity is often misunderstood or posted incorrectly. Because of varying methods of recording joint ventures (consolidation, equity or costs), it is critical to assess the job costing at the beginning of the activity. • Loss Contracts in the Period: Generally Accepted Accounting Principles (GAAP) require that a loss contract be fully recognized at the time a loss is determined, not prorated over the life of the project as you would a profit. This error can be avoided by monitoring the detailed job cost schedule. • Final Results: The estimation risk of contract accounting is tied to the two main drivers of revenue recognition: an estimated total contract that can include estimates for change orders and the estimated costs to complete the project. It is tempting to estimate that a job will finish at a better margin than anticipated, but at the end of the project, the true margins will be reflected. Understanding job costing and using the information that you gather from job costing reports improves not only your business, but the way of doing business. Withum continues to assist clients in understanding job costing and maintaining WIP schedules, as well as with software evaluations and implementation. If you have any questions in regard to job costing, please reach out to me directly at dfoster@withum.com.
To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
democrats gain seats, maintain control of legislature By: ryan sharpe, director of government affairs and communications
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However, after the polls closed on November 7, Democrats had fended off challenges in several competitive districts and picked off multiple Republican lawmakers to secure a net gain of at least six seats, with one Assembly race not decided until days after the election. In South Jersey, Democrats preserved their seats in the hotly contested Fourth District where current Assemblyman Paul Moriarity was elected to replace retiring Senator Fred Madden. His Assembly running mates, Dan Bailey and Cody Miller also dispatched their Republican challengers. In the neighboring Third District, former Assemblyman John Burzichelli defeated Ed "The Trucker" Durr who famously knocked off Senate President Steve Sweeney in 2021. Burzichelli’s Assembly running mates Dave Bailey and Heather Simmons also won, taking out an incumbent Assemblywoman, Bethanne McCarthy Patrick in the process. Other races considered to be competitive mostly went in the Democrats' favor with incumbent Senator Andrew Zwicker holding on to his seat along with those of his Assembly running mates, Roy Frieman and newcomer, Mitchelle Drulis. In another race that was expected to be close, Bergen County Senator Joseph Lagana was easily re-elected. Lagana is widely considered the frontrunner to serve as Chairman of the Senate Labor Committee. In Burlington County, Republicans were successful in defending the Assembly seat held by Mike Torrissi but his colleague, Brandon Umba lost to his Democrat challenger, Andrea Katz. Republican Latham Tiver of the Operating Engineers Local 825 was elected to the Senate to fill the seat of Jean Stanfield who chose not to run again. In Monmouth County, Democratic Senator Vin Gopal easily won re-election and his coattails helped his running mates defeat incumbent legislators, Kim Eulner and Marilyn Piperno. And in one of the night's biggest surprises, Assemblyman Ned
Thomson was defeated by Democrat Avi Schnall who relied in support from Lakewood's Orthodox Jewish community to win a seat in a heavily Republican district that spans Monmouth and Ocean Counties. In the end, despite the tens of millions spent by both parties and various groups, the Democrats will retain their 25-15 majority in the Senate while the Assembly Democrats increased their numbers and will now hold a 52-28 advantage. Combined with a record-breaking number of retirements, these results mean the Legislature that takes office on January 9, will be very different than the one that currently exists. However, the Democrats will still control the Senate, Assembly and the Governor’s office. Some believe the Democrat success on Election Day will lead to more progressive policies coming from Trenton and less support for pro-business initiatives generally favored by Republicans. Conversely, many successful Democratic candidates and legislative leaders professed support for “affordability” so it’s possible there will be less of an appetite for enacting expensive government programs.
Legislative News
ith all 120 seats in the Legislature up for election in November, the Democrats picked up multiple seats, further cementing their control in Trenton. With a newly redrawn legislative map, Republicans were optimistic they would gain seats and cut into the Democrat majorities. Some even predicted Republicans could take control of one or both houses for the first time in decades.
With the passing of Election Day, the Legislature has resumed meeting and embarked on the so-called “lame duck” period between the election and the swearing-in of the new legislature. During this period, many retiring or defeated lawmakers are still voting on bills as the end of their term approaches, giving rise to their “lame duck” status. This is often a time where many deals are struck and members who are not returning often seek to enact “legacy” bills before the end of their tenure. It is also an opportunity for controversial bills to be passed-often with the support of legislators who are on their way out of Trenton. The legislative elections also signify the unofficial start of the race to succeed Governor Phil Murphy whose term ends in less than two years. Many contenders have started making moves toward a gubernatorial run, including Republican Senator Jon Bramnick who recently launched a political action committee which may be a precursor to a run for Governor. Former Republican candidate Jack Ciattarelli has essentially never stopped running for Governor and may be joined in the race by radio host Bill Spadea who has been running a grass roots campaign across the state in what many see as preparation for a gubernatorial campaign.
Utility & Transportation Contractor | december| 2023 33
With Murphy term-limited, multiple Democrats are said to be considering their own runs for Governor, including Congress members Josh Gottheimer and Mikie Sherrill, as well as former Senate President Steve Sweeney, Newark Mayor Ras Baraka and Jersey City Mayor Steve Fulop, who is the only declared candidate so far.
Legislative News
Another factor that may influence the Governor’s race is the fate of New Jersey’s current U.S. Senator Bob Menendez who is facing multiple indictments for bribery, acting as a “foreign agent” for the Egyptian government and numerous other alleged corrupt activities. Despite widespread calls to resign, Menendez has refused to step down and has indicated he plans to seek re-election next year which could turn a reliable Democrat Senate seat into a competitive race. With the risk of losing their one-seat majority in the Senate, several Democrats are seeking to take on the widely unpopular Menendez. As of this writing Congressman Andy Kim has announced his candidacy and New Jersey’s First Lady, Tammy Murphy has taken steps that indicate she will seek the seat. A Menendez resignation or primary loss would set off a round of musical chairs in New Jersey’s political world as multiple lawmakers have already announced their interest in not yet vacant Congressional seats.
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Finally, any mention of the Congress must include the historic disfunction which effectively paralyzed our federal government. After then-House Speaker Kevin McCarthy cut a deal with Democrats to avoid a government shutdown, a small group of right-wing Republican Congressmembers ousted McCarthy and blocked the election of multiple Speaker candidates. After being without a Speaker for over three weeks, House Republicans eventually settled on Congressman Mike Johson to lead their caucus which holds a razor-thin majority in the House. Despite months of chaos in Washington, next year will likely be even more tumultuous as President Biden gets ready to seek re-election. On the Republican side, potential presidential candidates, including Chris Christie, Nikki Haley and Ron DeSantis, are seeking to battle it out with frontrunner Donald Trump who will be running for president while facing four separate criminal trials. While the political and governmental spheres generate tremendous turmoil here in New Jersey and throughout the country, UTCA continues to maintain and develop positive relationships with key decision-makers in Trenton and Washington and will be actively engaged to ensure our industry is represented at all levels of government.
Cover Story
100 years of connection The Henkels & McCoy story of innovation & progress
A
lot can happen in 100 years. In 1923, the average life expectancy for men was only mid-50’s, radios (not TikTok) were the main source of entertainment for most Americans, and women had only just gained the right to vote. Also in 1923, the Henkels & McCoy family business was brought to life. This company – and all the people who were part of it then and now – has been building trust, prosperity, and a better-connected world every day since. When Jack and Ann Henkels founded Henkels & McCoy in 1923, their vision was to work hard at work worth doing, alongside people who felt the same. They knew that by working together, the Henkels & McCoy family would make the world a better place, and now there’s officially 100 years of proof of this mission brought to life. Today, a century and millions of miles of safe, reliable and worldclass infrastructure for utility, commercial and government customers later, Henkels & McCoy has accomplished remarkable achievements by living the positive family values of integrity, commitment, and mutual respect. The company has grown from its humble roots as a tree-trimming and landscaping company into a nationwide utility infrastructure contracting firm.
Underground Gas Work
As Henkels & McCoy celebrates a century of honest, successful work, we’re looking back at the company’s milestone moments and then looking ahead to what the next 100 years could hold. A Century of Momentum The 1920s Jack Henkels opened Henkels & McCoy in the Germantown section of Philadelphia with one truck, a handful of employees and high hopes. Before long, the fledgling firm secured tree trimming contracts with its first two significant customers – Philadelphia Suburban Electric Company and Bell Telephone. The 1930s The Great Depression’s grip threatened to strangle many small companies, but Henkels & McCoy crews followed work wherever they could find it, even expanding into tennis court construction. Jack Henkels wife, Anne, discovered a talent for business and began managing the office during this time and, in 1938 when a Category Three hurricane devastated Long Island and much of New England, Henkels & McCoy mobilized more than 400 men and trucks for emergency tree clearance and telephone and power restoration work. The 1940s
Underground work in the 1950's
44 Utility & Transportation Contractor | december | 2023
World War II redefined Henkels & McCoy’s lines of business and the company began work in the gas sector, undertaking a 1,100-mile telephone pole line rehab for the Southern Railway, spanning seven states. In 1947, Paul Henkels joined Henkels & McCoy full-time as a laborer on gas crews, expanding the company into new regions of the country and establishing it as a key provider of construction and engineering services for the telecommunications industry.
The 1980s Henkels & McCoy established a Training Services Department to train underemployed and underrepresented people within the rapidly growing Cable TV industry and instated a new Teledata Division devoted to network cabling. The 1990s
A full range of natural gas distribution project management and construction services are delivered.
The 1950s Henkels & McCoy installed 10 miles of water pipe, 20 miles of electric line, 4,000 latrines, 1,400 showers and 700 tents in Pennsylvania’s Valley Forge State Park for the 1950 Boy Scout Jamboree. President Harry S. Truman and General Dwight D. Eisenhower both spoke at the event, and more than 50,000 scouts attended. In 1953, Henkels & McCoy installed the nation's first Community Access Television (CATV) system in the small town of Lansford, Pennsylvania, and in the mid-’50s, Henkels & McCoy opened a major office in Elkhart, Indiana, to replace its Erie, Pennsylvania, location. This new office established the beginning of Henkels & McCoy’s Central Region. In 1958, after 35 years of operating as a partnership, Henkels & McCoy officially became an incorporated company. The 1960s As Henkels & McCoy launched a decade of significant growth, the company took on projects across the country ranging from installing telecommunications systems in Washington, D.C. and power lines in Wisconsin to building microwave towers in Ohio. The company added corrosion control and other engineering services to its offerings and launched a Communications Engineering office, soon offering engineering services nationwide along with Industrial Design, Telecommunications, Corrosion Control, CATV, Electric Power, Project Engineering, Technical Services, and Special Services.
The company also completed a 3,293-mile fiber optic network – the largest network ever built – extending from the northern border at El Paso, Texas, through cities and towns in Mexico. The 2000s to Today As internet usage exploded, Henkels & McCoy responded to the nation’s thirst for bandwidth, from communities across the country to the highest levels of government. During the September 11th terrorist attacks, much work on the company’s Network Cabling Solutions' prestigious communications renovation project at the Pentagon was destroyed. Later that year, the Pentagon Phoenix Project was initiated, tasking contractors with replacing previously installed work and completing previously scheduled tasks. Despite the intense workload, the Henkels & McCoy team won a Safety Award from its insurer for 100,000 hours without an employee man-hour lost due to injury.
Cover Story
In the mid-’90s, Henkels & McCoy installed Asymmetric Digital Subscriber Line (ADSL) to 1,000 homes in Northern Virginia, testing the new revolutionary cable TV system – a precursor to today’s on-demand systems.
In 2005, Henkels & McCoy dispatched 786 employees and 445 pieces of equipment in response to Hurricanes Katrina, Rita, and Wilma and raised more than $230,000 in hurricane relief funds. In 2007, the company began the Grand Ridge Wind Project, the first complete wind project electrical package awarded to the company.
In 1968, Henkels & McCoy employee Marty Helmus invented the Railroad Mounted Cable Plow, an industry-changing tool that allowed for rapid placement of communications cable by digging the trench, laying cable and covering it with one piece of equipment. The 1970s John B. Henkels III oversaw expansion into California, Oregon, Washington, Idaho, Nevada, Utah, Arizona, New Mexico, Colorado, Wyoming, and Montana, and the company established its pipeline operations division.
Henkels & McCoy has grown from a small business with a single truck to an industry-leading utility construction firm.
Utility & Transportation Contractor | december| 2023 45
Cover Story
When Superstorm Sandy devastated the East Coast in 2012, Henkels & McCoy dispatched personnel across all affected states to help make damaged sites safe and restore power. In December 2021, the Henkels & McCoy family officially became part of the MasTec family of companies and as a result, is more equipped than ever before to live and breathe its mission to create a better-connected world. The MasTec story is also a special one – starting as a humble organization back in 1969 with hardworking Cuban refugee Jorge Mas Canosa. With passion, vision, and commitment, he proved himself and encouraged his three sons to get involved with the company. His eldest son, Jorge Mas is now chairman of MasTec, and his son, Jose is the company’s CEO. As the company approached its 100th year, Henkels & McCoy proudly launched Henkels & McCoy West, established specifically to address the unique needs of the Western United States. Henkels & McCoy West now performs power distribution, power transmission, power substation, and gas distribution construction services for the largest utility companies in the western United States. With experience across many unique challenges that face power utility construction in all areas of the country, Henkels & McCoy
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has innovated varying mitigation approaches to each of those challenges. The company employs only the industry’s top workers who pride themselves on connecting with customers and helping them connect with the world. Looking Ahead Looking ahead, Henkels & McCoy leadership anticipates that grid modernization will remain a priority to support transportation electrification, data centers, and energy storage, noting that Henkels & McCoy will remain front and center in this movement. Predicting that energy delivery will become completely interconnected via high-speed data connections, with artificial intelligence aiding in decision-making, they are developing their workforce and investing in resources to prepare for the opportunities ahead. A lot can certainly happen in 100 years – a small business that began with a single truck can turn into an industry-leading utility construction firm providing critical infrastructure design, construction, and maintenance services for the power, oil & gas pipeline, gas distribution, and communications markets throughout the country and beyond. It will be exciting to see what the next century will bring for this proud organization with family at its core.
OSHA Emphasizing Fall Protection, Heat Hazards, and PPE in Continued Focus on Workplace Safety in Construction IndustrY By: Kevin S. Brotspies and Greg Trif
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afety is critical in construction. Unsurprisingly, therefore, the Occupational Health and Safety Administration (“OSHA”) remains keenly focused on workplace safety issues in the construction industry. Through its recent issuance of national emphasis programs, alerts, and notices of proposed rulemaking, OSHA has signaled that contractors must be particularly vigilant with respect to fall protection, heat hazards, and personal protective equipment. Fall Protection
OSHA seeks to accomplish its stated goal through a combination of outreach, increased enforcement, and compliance assistance. In addition to programmed inspections and inspections triggered by incidents, referrals, and complaints, Compliance Safety and Health Officers (“CSHOs”) are authorized to initiate inspections whenever they observe someone working “at heights.” The NEP does not establish a minimum height for purposes of triggering a fall protection investigation. Such observations by CSHOs may take place during the CSHO’s regular workday travel or during another unrelated inspection. An inspection under this NEP is limited to evaluating worker protection against fall hazards, but CSHOs are authorized to expand the scope of any such inspection if other hazards or violations appear evident at the worksite through injury and illness records, visual observation, or employee interviews. Though applicable to all industries, the NEP on falls anticipates that most fall protection inspections will take place in the construction industry. Contractors can expect to experience an increase in fall-related OSHA inspections, notwithstanding that 65% of all OSHA inspections in the construction industry, between 2014 and 2021, already had an emphasis on fall protection (compared to 9% in all other industries). Contractors should ensure that they have implemented adequate fall protection plans and that those plans are routinely adhered to by all employees.
This summer, OSHA reiterated its focus on reducing heat-related workplace illnesses and deaths by issuing a Heat Hazard Alert, reminding employers of their obligations under a 2022 NEP regarding indoor and outdoor heat-related hazards. Heat hazards have been a focus of OSHA under the Biden Administration since 2021, when the agency issued a notice of proposed rulemaking for heat injury and illness protection. Then, in April 2022, OSHA issued the aforesaid NEP, which sets a goal of a 100% annual increase in heat inspections above the average annual number of inspections between 2017-2021. The heat NEP directs CSHOs, during unrelated investigations, to open or refer a heat-related inspection for hazardous heat conditions observed or recorded in logs or incident reports. CSHOs are also encouraged to inquire of employers about the existence of any heat-related hazard prevention programs on heat priority days (defined as days with an expected heat index of at least 80 degrees). Further, OSHA performs programmed inspections on any days where the National Weather Service has announced a local heat warning or advisory. Notably, the NEP specifically targets the construction industry for heat-related inspections. OSHA’s July 2023 Heat Hazard Alert reminds employers of their duty to protect workers against heat by not assigning work in high heat conditions without proper protections. Proper protection may include: (i) providing cool water, rest breaks, and shade or a cool rest area; (ii) allowing employees the chance to gradually acclimatize to the hot temperatures; and (iii) training employees on heat illness prevention, identification, and response.
Labor Relations
Fall protection in the construction industry has once again been identified as the most cited violation during OSHA’s fiscal year 2022, with falls from heights remaining the leading cause of serious injuries and fatalities across all industries. Given these statistics, OSHA has understandably implemented a National Emphasis Program (“NEP”) on falls. This NEP, which became effective on May 1, 2023 and has no stated expiration date, aims to “significantly reduce or eliminate” exposure to fall-related hazards.
Heat Hazards
With OSHA’s increased focus on heat hazards, and the agency’s specific emphasis on enforcement within the construction industry, contractors should confirm that they implement and comply with sufficient heat safety plans. Personal Protective Equipment Personal protective equipment (“PPE”) plays a critical role in contractors’ safety programs. Underscoring the importance of PPE, OSHA recently issued a notice of proposed rulemaking (“NPRM”) that would amend existing regulations to require that employers in the construction industry make available to their employees PPE that “properly fits.” 1 In the NPRM, OSHA specifically noted that improperly fitting PPE may not provide adequate protection to employees, may present additional hazards,
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or might discourage employees from utilizing PPE. In addition, the NPRM further notes that women (whose employment in the construction industry continues to grow) and larger employees often struggle to use standard size PPE.
Contractors should continue to prioritize safety on the job site, but pay particular attention to fall protection, heat safety, and personal protective equipment to remain compliant with areas that OSHA will be emphasizing moving forward.
The proposed revision to 29 C.F.R. 1926.95(c) would require, in addition to its existing mandate that employers ensure that all PPE is “of safe design and construction for the work being performed,” that PPE is “selected to ensure that it properly fits each affected employee.” This change would align the construction industry PPE standard with what is already in place in OSHA’s general industry and maritime PPE standards.
1 At time of publication, the public comment period for this NPRM had closed and OSHA was moving forward with the rulemaking process.
Labor Relations
The construction industry, however, has expressed concern that the proposed rules do not define what it means to “properly fit” an employee. Without such a definition, there is a genuine risk that employees may complain that equipment does not “properly fit” when the equipment is actually appropriate for use but just uncomfortable. It is similarly unclear whether all “universal fit” PPE would satisfy an employer’s obligation to provide “properly fitting” PPE. Ultimately, it is likely that, if adopted, the proposed rules will result in contractors purchasing and utilizing a greater variety of PPE.
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About the Authors. . . Kevin S. Brotspies, a member of Trif & Modugno LLC, represents businesses, including contractors and subcontractors, in all areas affecting the construction industry, including in employment and labor matters. Greg Trif, a member of Trif & Modugno LLC, represents developers, general contractors, subcontractors, and suppliers in all areas of law affecting the construction industry including contract claims, project crisis management, labor and employment disputes, and business torts.
By: brian m. fraley, fraley construction marketing
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hy would an established highway contractor with a history of using a crane with diesel hammer for pile driving be working at the Philadelphia Navy Yard with a sophisticatedpile driving rig? That would be fair question by anyone familiar with James J. Anderson Construction Co., Inc. (JJA) and Junttan pile driving equipment. Those familiar with the Philadelphia construction market tend to associate JJA with the region’s most established companies. JJA only dates back to 1981 when founded by Jim Anderson. Since then, the company has expanded its expertise into nearly every aspect of heavy civil construction. Expansion into new areas is in JJA’s DNA. Broad Street Quay Wall Project The Broad Street Quay Wall project – owned by the Philadelphia Industrial Development Corporation (PIDC) – has been hailed as the new gateway to a reimagined Navy Yard. It is an engineering feat years in the making. When completed, it will include two vehicle lanes in each direction, a two-way elevated bike lane, and a scenic pedestrian plaza overlooking the Reserve Basin. JJA’s rectangular 700-foot-long jobsite – just inside the main gate of the Navy Yard – is a straight shot connecting Crescent Drive to Intrepid Lane. To the right, towering ships anchored in the square-shaped pocket of the Delaware River dwarf most of the construction equipment on site.
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jja trades diesel hammer for junttan piling rig on navy yard project From an engineering standpoint, this project was necessary to abate the subsidence of Broad Street due to hydraulic erosion. “The old seawall was cracked and leaking, allowing water underneath Broad Street,” explains JJA’s Chief Engineer Bob Crawford, P.E. “This area undergoes a six-foot tide, so the water goes up and down in the Reserve Basin six feet twice each day. The tidal ebb and flow getting through the seawall was undermining the roadway to the extent that they had to shut down a portion of Broad Street.” The joints in the existing cast-in-place concrete wall – located 20 feet apart – had widened over time. Every time the tide rolled out, small amounts of soil were removed. JJA has been at work on this project since June 2022, according to Crawford. “There was an existing concrete seawall sitting on a timber deck,” he says. “Our overall scope was first to drive a line of NZ 38 sheet piles to create a new 700-foot steel seawall behind the existing concrete wall, then remove the old seawall and timber deck on which it sat, and drive 12-inch epoxy-coated piles in front to support a new concrete pedestrian walkway.” “The new steel seawall had to be anchored to a concrete tieback sitting on batter piles,” says Crawford. “The tieback sits 50 feet behind the seawall. 3-inch diameter galvanized tendons go from the steel seawall back to the concrete tieback. Once that system and the utilities are all in, we reconstruct the Broad Street roadway, new sidewalk, bike path, and pedestrian plaza.” To construct the concrete tieback anchor, JJA drove 79 18-inch and 79 16-inch pipe piles, which were designed to be 80 feet long and driven on a 2V:1H batter. During test pile installation, it was determined that there were locations on the project where the tieback piles would need to be spliced and driven more than 100 feet to achieve design capacity due to changing soil conditions. “None of the pipe piles on the project are seated in rock,” Crawford says. “The 16-inch compression piles and 18-inch tension piles both derive their capacity from predominantly skin friction with only a minor contribution from end bearing for the compression piles.” James J. Anderson Construction Co., Inc. rented a PMx28 Pile Driving Rig with HHK5S Hydraulic Impact Hammer from Junttan USA to handle pile driving at the Broad Street Quay Wall project in the Philadelphia Navy Yard in October 2022.
“We’ve seldom done friction piles so this was an experience to go through the test pile program and all the dynamic analysis iterations with Urban Engineers to determine that the production piles will attain the design capacity,” says Crawford.
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From Conventional to Unconventional
material intensive, according to Crawford.
JJA had never used a Junttan pile driving rig, but had seen them used locally and on the internet. “JJA is accustomed to diesel hammers, air hammers, vibratory hammers and drilled piles installed with a crane, and our usual experience – primarily working for PennDOT – is end-bearing piles to rock,” Crawford says.
“We’ve done batter piles before, but not quite this extreme,” Crawford says. “At this angle, we would have needed significant anchored false work to maintain the pile angle at such an extreme batter.”
Since past work was performed with a crane-mounted hammer, JJA was first-time customer for Junttan USA. Junttan USA rented JJA a PMx28 Pile Driving Rig with HHK5S Hydraulic Impact Hammer to drive the pipe piles in October 2022, while the contractor simultaneously scheduled a rig from another vendor to vibrate in the sheet piles. When that rig became unavailable due to an emergency project, Junttan USA’s sales engineer Matt Eastburn saw an opportunity to expand the role of its rig. Junttan USA had never rented a rig with a vibro package and leaned on its partners in Canada to supply the package to be installed on the PMx28. The cross-continental partnership paid off. “For the sheet piles, we had the rig equipped with a PTC variable moment hammer, so we had to mount the power pack on the back,” Eastburn explains. “We took off the counterweight and essentially used the power pack in its place.” Junttan USA had Junttan Canada ship the vibro and power pack to the Navy Yard where the PMx28 was waiting. JJA provided crane support on the assembly. The transition between vibratory and standard pile driving was seamless. When the time came to drive the 16- and 18-inch-diameter piles, the vibro components were removed, and the counterweight and HHK5S hammer were re-installed. Aside from a small portion where a Philadelphia Water Department culvert pokes through the seawall, all pile driving was ultimately done using the Junttan PMx28. “We did all the engineering in house,” explains Eastburn. “Junttan USA installed the vibro kit, which was supplied by Junttan Canada. They had retrofitted it to a PMx28 they had in stock. Junttan Oy is always supportive of our companies, but their main role here was engineering work for the batter piles.” “The most challenging part of the engineering we had to do was the stability analysis to ensure that the rig wasn’t going to tip over while holding the 2V:1H batter and the 8,000-pound pile and 23,500-pound hammer,” says Eastburn. “With the elimination of a portion of the counterweight, we were able to lay the leader back with a full length pile.” “Junttan was amazing,” says Crawford. “Matt (Eastburn) did a balancing act with the weight of the hammer. I don’t know if it’s near the limits of the PMx28’s capability, but it’s probably pretty close to get 26 degrees of incline and hold all that weight in place.” Extreme Batter Piles The key issue for JJA was finding an unconventional way to drive 80-foot-long piles on an extreme batter that was not labor and
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JJA was able to meet or exceed estimated production for the installation of sheeting and the batter pipe piles during its first experience with the PMx28 thanks to Junttan USA’s on-site training and JJA’s diligent operator.
Crawford also believes its conventional equipment would have faced other challenges in this application. “We’ve had problems in the past with diesel hammers on significant batters. Diesel hammers tend to misfire when tilted. We don’t have that issue with the Junttan hydraulic hammer.” Although JJA has experience installing batter piles of lesser degrees, 26 degrees was a batter it had never encountered. This angle was necessary due to the heavy loads such as large trucks and transports that will enter the Navy Yard on Broad Street. Because these live loads will exert high lateral pressure on the new steel sheet pile Seawall, they had to be counteracted by the batter piles in the tieback anchor. Due to the extreme batter, JJA required a follower to drive the batter piles the final few feet to grade. Junttan USA suggested the idea but did not supply the follower itself. Training Supports Production Adapting to a new pile driving machine is no easy task for an operator. JJA’s operator, Steve, embraced the challenge and the pile driving productivity reflected that. Steve was accustomed to operating JJA’s standard setup – a crane with diesel hammer. Junttan USA sent in a tech and provided onsite training, which included an in-depth assessment of the rig’s components and how to operate it. In addition to being a quick study, Steve had studied the manual prior to training. “Steve had quite the learning curve at the beginning, but once he got to know the machine, he was off to the races,” says Eastburn. Since JJA had never used a Junttan rig in the past, production was a serious concern, especially considering that the piles were to be driven with a 26-degree batter. JJA was ultimately able to meet or exceed estimated production for the installation of the
sheeting as well as the batter pipe piles.
The narrow 700-foot-long site also made using a crane-mounted diesel hammer with leads and bottom falsework prohibitive, according to Crawford. “The crane would have to be positioned to control the top end of the leads where a majority of the pre-driving weight is located,” he says. This would then require falsework at the bottom of the pile to maintain orientation and position. After completing one pile, we’d have to move the entire set up ahead every time. With the Junttan, it’s self-contained. It holds the pile and moves it ahead without expending time to disassemble and reset falsework.” The sheet piles were driven straight and accurately as well also without the need for alignment falsework. At the completion of driving the steel sheet pile seawall, JJA had to connect a double channel waler to the back of the sheet pile to accept the tieback tendon connections. The adjustments needed to attain proper bearing for the waler attachment were all less than one inch. Junttan USA’s Eastburn adds that having a single rig offered JJA easier setup, better site access, and less equipment to maintain. He says, “Our PMx28 setup is transported in three loads – one lowboy for the rig itself and two falloff loads on standard flatbeds for the hammer and counterweights. It requires a little bit of ma-
Under and Over the Navy Yard The Navy Yard operated as a U.S. naval base from 1876 to 1996 so it stands to reason that the underground conditions are as diverse as its history.
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Although Crawford acknowledges that the PMx28’s ability to hoist and drive piles without falsework was the main factor for choosing Junttan, the operator’s ability was also factor. He says, “There’s a learning curve, of course. But once it has been overcome, production reaches where it needs to be.”
chine support to assemble, but once it’s set up, you can track back and forth to each pile on site.”
During installation of the 16-inch pipe piles for the tieback anchors, JJA encountered the remains of a 700-foot-long timber bridge from the 1800s about 11 feet down. The bridge had once connected Broad Street with this area of the Navy Yard, which was once known as League Island. The Pennsylvania Historic Museum Commission determined that the underground structure had low historical significance, so JJA was permitted to put points on the 16-inch pipe piles to penetrate the bridge wall, which was comprised of 6- and 12inch timbers. The tips allowed the contractor to drive 16-inch piles through roughly two feet of wood using the PMx28. “If you’re driving a pile on a batter with a crane and leads and a timber wall is there, the pile will slide down the wall trying to find a weak spot and then penetrate there,” says Crawford. “This pushes the pile off of its design location and orientation. The Junttan held it where it had to be, so we were able to keep the pile on its designed line while penetrating the wall. The point penetrated and the hammer held up well under this added stress.” The pile driving challenges were not just under the ground. The Navy Yard is densely populated with buildings connected by a labyrinth of narrow streets and 90-degree turns. Transporting 80-foot-long piles on a 100-foot-long trailer was a logistical challenge, especially with the historic sycamore trees that bordered the site. PIDC agreed to prune the fronts of the trees to provide access for the piles and the Junttan rig. “PIDC needed a good reason just to prune them,” says Crawford. “To get approval to take them down would require an act of Congress.” He continues, “If we’d have done this pile driving conventionally with a crane boomed over those trees, it never would have happened. We don’t have the space or clearance to fit a rig holding a 26-degree batter through the tree canopies. Booming back just the mast of the Junttan rig where the trees had been pruned in the front worked for us, and more importantly, worked for PIDC.”
JJA used the PMx28 to drive a line of NZ 38 sheet piles to create a new 700-foot steel seawall behind the existing concrete wall, and drive 12-inch epoxy-coated piles in front to support a new concrete pedestrian walkway.
JJA finished its pile driving work with the Junttan setup in July 2023, but continued marching toward the timely completion of the project in December. As drivers and pedestrians enter the Navy Yard, they will see freshly paved roads, newly constructed granite clad wall with recreated stone piers, a new pedestrian walkway with extensive landscaping, but will never realize the complex geotechnical challenges below that were overcome by a forward-thinking project team and a willingness to break out of the comfort zone and engage with new equipment technologies.
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By: Ryan Sharpe, Director of Government Affairs & Communications
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UTCA & NJ DOT Host Successful Industry Recruiting Event
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ith the industry continuing to struggle to attract qualified staff, UTCA partnered with the New Jersey Department of Transportation (DOT) to host an event to encourage young people to consider a career in the infrastructure construction field. The event was spearheaded by Glenn Ely of PKF-Mark III who made recruiting staff for both the private and public sides of the industry one of the goals of his term as President of UTCA. Held at the New Jersey Institute of Technology (NJIT), the event attracted a wide variety of interested students who interacted with staff members from the DOT, the Port Authority of New York & New Jersey and the New Jersey Turnpike Authority, who all enlightened students about careers on the government side of construction. A number of UTCA contractors were also represented and they shared their experience working for a contractor. Many participants noted how impressed they were by the qualifications of the students who consisted mostly of engineering and construction management students who will soon be entering the workforce. Following remarks from NJIT President Teik Lim, Assistant DOT Commissioner Parth Oza delivered a keynote address which focused on his background and other factors that led him to choose a career in the construction industry.
Jarod Delpome from Crisdel speaks with a student regarding internship opportunities in construction.
Dave Rible and Glenn Ely are pictured with Assistant DOT Commissioner Parth Oza and NJIT President Teik Lim.
by a networking lunch which allowed students to engage in oneon-one conversations with contractor and agency staff members. In addition to PKF-Mark III, contractors who participated included Northeast Remsco, Vollers, D’Annunzio & Sons, Carbro, Crisdel and J. Fletcher Creamer & Son. Due to the overwhelming success of this event, plans are already underway for another recruiting program next year.
NJIT students enjoy time networking with representives from UTCA member firms, NJDOT, the Port Authority of NY & NJ and NJ Turnpike.
Glenn Ely then led a question-and-answer session involving the state agencies and contractor representatives which was followed
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By: karen walsh, senior account executive- employee benefits, ioa
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n June 30, 2023, the U.S. Supreme Court struck down President Joe Biden’s student loan forgiveness plan, which means borrowers must resume making student loan payments as soon as Oct. 1, 2023. According to the U.S. Department of Education, interest on outstanding federal student loan balances will begin on Sept. 1, 2023. In response to the Supreme Court’s decision, the Biden administration announced that it would continue to pursue student loan relief measures through the Higher Education Act. However, this process will likely take months. The Supreme Court ruling may have a detrimental effect on employees struggling with student debt. It may increase financial stress and instability, worsen mental health and decrease job productivity. Preparing Employees for Repayment Employers often play a crucial role in helping employees navigate student debt challenges. Additionally, organizations that provide student loan benefits may experience improved employee attraction, retention, productivity, and satisfaction. To help affected employees get ready to resume paying off their student loans, employers may consider the following strategies:
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Helping Employees Prepare for Student Loan Repayments improve mental health and increase workplace productivity. • Create student loan contribution plans. Similar to retirement plans, these contribution plans enable employees to put a designated amount of their paycheck toward their student debt with a match from their employer. By automating the decision to put money toward student debt repayment, these plans can help employees save without the temptation to spend their money elsewhere. • Promote retirement savings. Alternatively, some employers contribute to employees’ retirement accounts when they apply eligible income to loan repayments that would have gone to their 401(k). This frees up funds, allowing employees to pay off their loans faster and build up their retirement savings for the future. • Offer tuition assistance. Although it won’t help employees pay off past debts, providing tuition reimbursement or tuition assistance can prevent employees from going into student debt for future education. These programs can show employees they’re valued by their employers, potentially increasing employee engagement, satisfaction and retention. Initiating a student loan repayment program may bring up a lot of questions, so be sure to consult your IOA Team for more information.
• Offer student loan repayment assistance. According to a recent Employee Benefit Research Institute survey, 17% of large employers offer student loan debt assistance and another 31% plan to do so. Repayment assistance may take many forms. Through the Coronavirus Aid, Relief and Economic Security Act (or CARES Act), employers can offer up to $5,250 in student loan repayment as a tax-free benefit to employees every year through 2025. Additionally, employers can provide lump-sum or recurring payments to assist employees financially. These payments may come in the form of signing bonuses or monthly, quarterly or annual payments. Employers can also link student loan assistance to retirement. savings or allow employees to apply unused paid vacation time toward their student loans.
OTHER TRENDY BENEFITS FOR 2024
• Provide financial literacy and planning services. Employers are uniquely positioned to offer employees the resources and support to understand and strategize their payments. Student loan payment counseling could help educate and guide employees as they figure out how to repay their loans and balance other expenses. Sharing educational resources, such as loan payoff calculators, or providing financial counseling and webinars are cost-effective ways to empower employees to make financially healthy decisions. Additionally, these services can reduce employees’ stress,
Voluntary Benefits
There's no denying that employees' needs have changed over the past few years. As such, employers can offer benefits to meet evolving worker needs shaped by lingering effects of the COVID-19 pandemic, a tight labor market and rising inflation. Many workers are paying more attention to their benefits and wondering how to stretch their dollars further. Benefits have always been crucial for attracting and retaining top performers. For 2024, employers are uniquely positioned to offer more than just a health care plan, including holistic benefits, resources and perks that today's workers most need. This article highlights benefits that are likely to be popular in 2024.
It's no secret that health care costs in the United States have risen sharply over the past two decades and will likely continue to in crease. Health care affordability is top of mind for employers and employees alike. As employers search for ways to manage their health care costs, some are considering voluntary benefits as a strategy to round off their offerings. A rising number of organizations recognize that voluntary benefits are advantageous to
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employees and their families—and many come at no cost to the employer.
• Retirement plan options with matching contribution
Consider the following popular secondary benefits employers are offering:
• Flexible spending account contribution
• Accident insurance • Critical Illness • Hospital indemnity insurance
• Health savings account contribution • Financial planning assistance and coaching • Lifestyle spending account • Transportation benefits
• Disability insurance
• Employee discount or purchase program
• Life insurance
With any of those offerings, education will remain a necessary component to increase employee utilization. Employers are uniquely positioned to help employees understand the importance of these benefits and can help them increase their financial literacy with additional resources and tools.
• Identity theft protection • Pet insurance Voluntary benefits can provide value to employees without raising an employer's costs, making them powerful tools for attracting and retaining top workers. Financial Wellness Benefits Many employees are feeling financially strained due to record-high inflation. Not only will inflation impact employees' decisions about benefits, but it may also result in a need for financial wellness education and guidance. However, financial wellness benefits must go beyond only offering educational resources to be impactful. Organizations can boost their attraction to today's workers by offering the following types of desired financial wellness benefits:
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In summary, organizations can start optimizing benefits packages by evaluating employee preferences and thinking about ways to improve offerings or tailor them for their workforce. To ensure offerings and investments will resonate with employees, organizations should consider surveying them first. It's important to keep a pulse on employees and see what they find most valuable and necessary for their overall well-being as lives continue to be impacted by inflation and any other personal challenges. For more information on these topics, please reach out to Margaret Fitzgerald or Karen Walsh at Insurance Office of America.
accounting and risk mitigation strategies for utility contractors By: Salvatore Schibell, CPA, CFP®, CGMA, MS Taxation, MBA
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he year 2024 holds significant opportunities and challenges for utility contractors, considering the current economic climate, geopolitical conflicts in the Middle East and Ukraine, and the ongoing effects of increased infrastructure spending. This article will delve into accounting and risk prevention strategies that utility contractors can employ to enhance profitability while effectively managing the complex external factors that will affect their operations in 2024.
Asset Management and Depreciation Accounting practices for utility contractors should involve effective asset management and depreciation practices. Increased infrastructure spending can result in the need for more equipment, and it's vital to account for these assets accurately. Implement an asset management system that tracks acquisitions, maintenance, and depreciation. By correctly accounting for assets and their depreciation, contractors can optimize tax strategies, reduce liability, and ensure that assets are well-maintained, extending their useful life. This approach helps achieve long-term profitability through lower operational costs and efficient resource allocation.
Comprehensive Financial Forecasting Meaningful accounting practices begin with a robust financial forecasting system. Considering today’s economic climate and potential disruptions caused by geopolitical conflicts, contractors should emphasize detailed financial modeling. Create forecasts that account for a range of economic scenarios, including unstable supply chains, potential downturns, and inflationary pressures. By understanding the financial landscape, contractors can make informed decisions on project investments, cost control, and resource allocation, which are essential for profitability. Consider leveraging accounting software and professional financial advisors to facilitate accurate and flexible financial forecasting. Risk Management and Insurance The geopolitical challenges posed by conflicts in the Middle East and Ukraine underline the importance of risk management and insurance. Utility contractors operating in regions prone to instability should invest in comprehensive risk assessment and mitigation strategies. Work closely with insurance experts to identify potential risks and tailor insurance coverage accordingly. Contractors should consider political risk insurance to protect investments in regions with a history of instability or conflict. Furthermore, a solid business continuity plan can help mitigate the impact of unforeseen events, ensuring that operations can continue with minimal disruption.
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achieving profitability in 2024:
Tax Planning and Incentive Utilization
provided.
Various tax incentives are provided by the Infrastructure Investment and Jobs Act of 2021 and other legislation. Utility contractors should work closely with construction tax specialists to maximize the benefits
Explore tax credits, deductions, and accelerated depreciation methods specific to contractors in the infrastructure sector. By proactively managing tax obligations and utilizing available incentives, contractors can reduce their tax burden, freeing up capital for reinvestment in the business and ultimately increasing profitability. Cost Control and Budget Management Amid increased infrastructure spending, effective cost control and budget management are critical. Accounting practices dictate that utility contractors establish rigorous cost control systems, ensuring projects stay on budget and meet deadlines. This is especially relevant given the competitive nature of the industry and potential cost fluctuations in today’s economic climate.
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Implement cost-tracking systems that allow real-time monitoring and analysis. Regularly review budgets and project expenses to identify and address cost overruns promptly. By maintaining a solid grip on costs, contractors can protect profit margins and ensure that projects remain financially viable. Compliance and Reporting Along with increased infrastructure spending and heightened regulatory scrutiny, utility contractors must firmly commit to compliance and reporting. Engage legal and compliance experts to ensure your business adheres to all relevant laws and regulations, especially those associated with government contracts. Inaccurate reporting or non-compliance can lead to legal issues, fines, and reputational damage. By adopting advanced accounting practices prioritizing compliance, contractors can mitigate risks and enhance their profitability through an unblemished reputation in the industry.
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Conclusion In 2024, utility contractors can bolster profitability by incorporating advanced accounting and risk prevention strategies that align with the complex external factors impacting the industry. Comprehensive financial forecasting, risk management, asset management and depreciation, tax planning, cost control, and compliance are pivotal in navigating the challenges posed by the 2023 economic climate, geopolitical conflicts, and the implications of increased infrastructure spending. By adopting these advanced strategies, utility contractors can confidently steer their businesses toward profitability in 2024 while effectively managing risks and leveraging opportunities presented by the evolving economic and geopolitical landscape. About the Author . . . Salvatore Schibell, CPA, CFP®, CGMA, MS Taxation, MBA, is the tax partner at Lawson, Rescinio, Schibell & Associates, P.C. He is a profit improvement expert who is driven to help construction contractors make more money. Sal can be contacted at 732-539-7328 or salschibell@lrscpa.com.