The Merit Shop Spokesman - ABC Keystone - February 2023

ABC Keystone Leadership

2023 Executive Committee:

CHAIR of the BOARD

Steve Conway

Pyramid Construction Services, LLC, A Quandel Company

CHAIR-ELECT

John Lehmann Poole Anderson Construction, LLC

1st VICE CHAIR Guy Kingree, IMC Construction

2nd VICE CHAIR

Steven Kearns, James Craft & Son, Inc

SECRETARY Ed Engle, Smucker Company

TREASURER

Timothy A. Kershner, CPA, Walz Group

2022 CHAIR Keith Eldredge, CPA, RKL

2023 Board of Directors:

Eli Ace, Nexen Construction, LLC

Robb Beiler, Quality Buildings LLC

Jeff Bright, Saxton & Stump Lawyers and Consultants

Roger S. Brubaker, Meadow Valley Electric, Inc.

Scott Duke, The Witmer Group

Joe Finkey, Martin’s Flooring, Inc.

Michael L. Fiore, Leonard S. Fiore, Inc.

Brian Floyd, EPIC Insurance Brokers & Consultants

Ken Funk, Arthur Funk & Sons, Inc.

John H. Hykes II, B&B Integrations

Anthony Leer, Leer Electric, Inc.

David H. Oblender, EHD

Matt Shehan, Benchmark Construction Company, Inc.

Jan L. Wagner, Wagman Construction, Inc.

Scott Wengrenovich, Murray

Jeff Witmer, Pathway Business Advisors

How will an RCO affect your ability to procure new work?

There is a growing trend throughout the Commonwealth where municipalities are enacting RCOs (Responsible Contractor Ordinances) for projects that are publicly funded in their jurisdiction. If your company competes in this arena, you will be faced with this in a community near you.

On the surface, an RCO appears to be something that ABC would support and encourage. The large majority of the RCO agreements tie a responsible contractor to a registered apprenticeship program. This doesn’t seem to be out of line based on what constitutes an “apprenticeship program.” An apprenticeship program must be registered and approved by the US Department of Labor or a State apprenticeship agency. It must graduate apprentices to journey persons. Who wouldn’t want the construction personnel on their job sites to be educated and trained on both their respective trade and safety? This is exactly what ABCs craft training programs are tailored toward.

Now think for a moment about how many of the trades in our industry don’t have apprenticeship programs available for their trade. How can they participate in a project with an RCO? Likewise, an RCO does not recognize or credit the tradesperson that has been in the industry for 30+ years and was never afforded the opportunity to attend an apprenticeship program, but has mastered his or her trade through OJT. And what allowance is given to the student that has bought and paid for an education at one of our Commonwealth’s

Steve Conway Pyramid Construction Services, LLC A Quandel Company

top-notch post-secondary trade schools (Pennsylvania College of Technology, Thaddeus Stevens College of Technology, etc.)?

The construction industry is ripe with training and education opportunities. Apprenticeship is only one of a multitude of ways to become educated in the trades. Manufacturers of building systems also offer training to installers - training that is specific to the trade, as well as the product. Equipment manufacturers offer training that is specific to their equipment. Colleges provide in-depth training and education, both practical and classroom, providing a well-rounded graduate to prospective employers. All of these are discounted by RCO agreements.

RCOs will force the municipalities that adopt them to procure bids from outside of their communities. Aside from large metropolitan areas, the local trades that provide job opportunities in these communities will not all be able to comply with these requirements. In turn, this will likely drive up the cost for the taxpayers and delay the start of projects.

Does your municipality have an RCO? Are they considering one? Talk to your local legislator. Talk to those that sit on the board of the governing authority for your community. Ask them if they truly understand the impact of these decisions. Is it the “responsible” thing to do?

DID YOU KNOW?

It’s that time of year when most of you have already renewed your membership. For that we thank you. As such it is our commitment to provide you a value for your investment in your association. Many things ABC can provide may be obvious such as education and training, networking and business development, and workforce development. But there are also the intangibles, the things you can’t touch, such as fighting for your rights at a State and Federal level and promoting free enterprise and the merit shop philosophy.

Did you know there is an entire group of infinity programs that actually might make being an ABC member put cash in your pocket? Some of the programs are as follows:

These are just a couple of the over 18 programs available. To make it even sweeter, some of these programs can even be offered to employees without a cost to your bottom line.

When we review the data of participating members, we see that many recoup enough savings that it offsets a nice portion of their dues. We also find that less than 20% of our members are participating in these programs. We are n ot doing a great job in providing this information. As we continue to go through 2023 we will make an effort to highlight a number of the programs individually.

• ABC’s Fuel Program offers discounts at over 95% of gas stations nationwide, including Sunoco, Exxon Mobil, Shell, Stripes, Phillips 66, Conoco and 76. Visit abc.org/fuel

A new program on the horizon is an ABC 401k program. As details become available, we will hold education seminars for the members. This program will help the small and midsized contractors that find they either don’t have the time or can’t afford to get a program up and running. For the larger contractor, there is also potential to save when it comes to administration and auditing.

As with all the services we provide, if you need help or are unsure of where to start, reach out to our member services team. If you didn’t before, hopefully you now know being a member of ABC can help your bottom line.

• ABC members save up to 50% with the FedEx Advantage Program. Visit abc.org/fedex

• Verizon Wireless offers special discounts and incentives to ABC members. Visit abc.org/verizon

• The apparel purchase program, offers up to 50% off work wear and special discounts on rentals. Visit abc.org/aramark

For more member discounts visit abc.org/Membership/Member-Discounts

Career and Technical Education Month®, or CTE Month®, is "a public awareness campaign that takes place each February to celebrate the value of CTE and the achievements and accomplishments of CTE programs across the country."

What is CTE?

"Career and technical education, or CTE, is education that directly prepares students for high-wage, highdemand careers. CTE covers many different fields, including health care, information technology, advanced manufacturing, architecture, construction, hospitality, management, and many more. CTE encompasses many different types of education, from classroom learning to certification programs to workbased learning opportunities outside the classroom."

The Keystone Chapter celebrates our CTE partners and students pursuing these high-demand careers, including our pre-apprenticeship and apprenticeship classes. For more information on ABC Keystone's educational pathways, please reach out to stephanie@abckeystone.org.

Source: What is CTE? ACTE. (2021, February 17). Retrieved January 01, 2022, from https://www.acteonline.org/why-cte/what-is-cte/

ABC Keystone’s Meet the Generals

Exclusively for Specialty Contractors, Architects, Engineers, Suppliers and Site-Designers: Don’t Miss this Chance to Meet Face-to-Face with ABC’s GCs

Two Locations | Two Dates & Times

Thursday, March 9, 2023

4:00 p.m. - 7:00 p.m. at ABC Keystone Headquarters, Manheim

Wednesday, March 22, 2023

4:00 p.m. - 6:00 p.m. at ABC Keystone Nittany Valley Office, Howard

• Meet one-on-one with multiple general contractors in one day!

• Strengthen relationships with industry-leading general contractors.

• Gain first-hand information on upcoming projects and bid qualifications

Presenting Sponsor Available Sign Up to Sponsor: emily@abckeystone.org

DIAMOND SPONSOR SAPPHIRE SPONSOR

PREMIER SPONSORS

PLATINUM SPONSORS

GOLD SPONSORS

Acuity Advisors and CPAs, LLP

Barley Snyder

CB Construction Services, Inc.

CV Services, Inc.

EHD

Garrety Glass, Inc.

D.E. Gemmill, Inc.

Grudi Associates

Hess Auctioneers, LLC

High Construction Company

Horst Construction Co.

MVE Group

Martin's Flooring, Inc.

M. Potteiger, Inc.

Providence Engineering

RKL

RSR Electrical LLC

Saul Ewing LLP

Smucker Company

Trout CPA

Wickersham Construction & Engineering, Inc.

SILVER SPONSORS

Associated Products Services, Inc.

Bertz, Hess & Co.

Broderick's Landscape Contracting, LLC

Brown Schultz Sheridan & Fritz

C Mechanical Services

C. S. Davidson, Inc.

ECS Mid-Atlantic, LLC

Harmon & Davies, P.C.

Hursh Painting Co., Inc.

Leer Electric, Inc.

GR Mitchell, Inc.

Paramount Contracting, Inc.

Remco Inc.

Silvertip, Inc.

Team Lewis Landscaping

R.A. Walton & Company, Inc.

Weaver Superior Walls

The Witmer Group

BRONZE SPONSORS

Commonwealth Fire Protection Co.

Fulton Bank

Haller Enterprises

ONYX Design and Consulting, LLC

Stonebridge Financial Group

JIM WILLSHIER ABC Keystone's New Director of Advocacy

ABC Keystone is excited to welcome Jim Willshier to the position of Director of Advocacy. He is responsible for the development, implementation, and management of the comprehensive government affairs program for ABC. This includes all legislative advocacy, PAC, grassroots, and government affairs activities.

In his role before joining ABC Keystone, Jim worked as the Chief Public Affairs Officer for the Pennsylvania Coalition Against Rape (PCAR.) President-CEO, G. David Sload, said “We’re very excited to have Jim on board. His depth of experience, knowledge, and leadership capabilities will complement the ABC Keystone team.”

"I’ve worked with ABC on several issues in the past and always appreciated the professionalism of the organization and its advocacy for members. This is an

organization I want to be a part of as it helps the next generation of the workforce find the jobs that they want to learn the skills needed and helps the industry as a whole because everyone has seen how much the economy is rapidly changing over the last few years. I’m excited for an opportunity to use what I’ve learned in government relations to advocate those needs with our public officials," says Willshier.

Willshier received a Masters of Public Administration from The Pennsylvania State University in 2004. Outside of his professional life, he has served as a volunteer firefighter for the Camp Hill Volunteer Fire Department since 2020. He is also a member of the Relief Association Board. Feel free to reach out to Jim at jim@abckeystone.org.

ABC: A Record 88%

Does Not Belong to a Union of the US Construction Industry Workforce

Associated Builders and Contractors released the following remarks today regarding the U.S. Department of Labor Bureau of Labor Statistics’ annual Union Members Summary. According to 2022 data, the percent of construction industry wage and salary workers belonging to unions dropped to a record low of 11.7%, a decline from 12.6% in 2021.

ABC analysis finds that a historically high 88.3% of the U.S. construction industry workforce––7.652 million people––did not belong to a union in 2022. Additionally, ABC found that there has never been a smaller percentage of union members in the construction industry since the BLS began tracking this data in 1973.

“Year-over-year construction industry union membership dropped despite robust overall job growth, suggesting that construction industry workers are not enthusiastic about joining a union when given a choice to do so,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “This illustrates why the Biden administration should not continue to advance controversial policies specific to the construction industry that require its workers to join a union and/or pay union dues, as well as contribute into union benefits plans, as a condition of employment on a taxpayer-funded federal construction project.”

“For example, President Biden’s Executive Order 14063, which requires federal agencies to mandate anti-competitive and wasteful project labor agreements on federal construction projects of $35 million or more—and other policies promoting PLAs

on federally assisted state and local government infrastructure projects—are expected to result in more infrastructure jobs for unionized contractors and more jobs for union members at the expense of taxpayers and the 88.3% of the U.S. construction workforce that freely chooses not to join a union,” said Brubeck. “In contrast to the past two years, President Biden would be better off creating policies that invite all of America's construction workforce to compete for infrastructure work on a level playing field, regardless of labor affiliation.”

Research has found that PLA mandates increase the cost of construction by 12% and 20% and result in the confiscation of 34% of a nonunion construction worker's compensation package unless they join a union and become vested in union plans.

“Instead of encouraging unions to improve their product and value proposition to employees, contractors and developers, President Biden continues to implement administrative and regulatory actions favoring unions––and push legislation such as the PRO Act––in an effort to increase union membership, which is in historical decline,” said Brubeck.

Construction unions lost 5,000 members over the past year, decreasing from 1.024 million members in 2021 to 1.019 million members in 2022. That’s despite the fact that the construction industry grew by 514,000 workers, from 8.157 million in 2021 to 8.671 million in 2022.

Source: https://www.abc.org/News-Media/News-Releases

PREPARING STUDENTS FOR APPRENTICESHIP

Pre-apprenticeship at ABC Keystone

P-A Connection is a Pennsylvania-registered construction pre-apprenticeship program providing a direct path to registered apprenticeship at ABC Keystone. P-A Connection prepares students with foundational knowledge applicable to any one of the registered apprenticeship trades available through ABC Keystone.

Classes take place at ABC Keystone’s training facility in Manheim, PA. Program graduates receive credit towards registered apprenticeship, along with an OSHA-10 card and a certificate of completion.

Logan is recent graduate of the Safety360 PreApprenticeship at ABC Keystone, joined the Plumbing 3 apprentices for a class. Offering our pre-apprentice graduates a chance to audit classes is just one of the ways we try to expose potential young talent to our industry.

ABCKEYSTONE.ORG

Lewis of Quarryville recently completed ABC Keystone’s Safety360 Pre-Apprenticeship. Today, he received his OSHA 30-Hour card and enjoyed a day with the Plumbing 2 Class. This sort of opportunity is just one of the ways we shared the skilled trades with young talent.

For more information about ABC Pre-apprenticeships contact: stephanie@abckeystone.org

LOGAN BROWN

BRENNAN LEWIS

Andrew Mobarak, Vice President andrew@casselteam.com www.Casselteam.com

Tell us about your company?

Founded in 1945, Cassel is a 3rd generation family owned and operated fleet graphics business based in Manheim, PA. Our Mission is to make vehicle graphics easy and to help businesses drive their brand. What started as a small sign shop focused on truck lettering, through hand painting, is today a multi-site team of design, print, and installation experts using cutting edge tools and technology to serve commercial fleets from all industries.

Did you know?

Cassel’s founder Amos Cassel was known for hand painting traditional dutch artwork on chairs and had sold them as part of Cassel’s first product offerings.

How did you get involved in the industry?

I previously worked in logistics and distribution and was familiar with fleets. I've worked at Cassel for two years with this being my first entry into the fleet graphics industry.

Light

ABC Keystone 135 Shellyland Road Manheim, PA 17545

Come cheer on the ABC Keystone National Craft Competition Team as they compete in a grueling battle of skill in preparation for the National Craft Competition on March 16, 2023 in Kissimmee, FL.

PLUMBING

Rick Barnhart

Frey Lutz Corp.

ELECTRICAL CARPENTRY

Matt Flores

Cayden

Heiselman

D&T Electric, LLC

DISCOVER APPRENTICESHIP AT ABC KEYSTONE!

ABC's Keystone's apprenticeship program offers a unique opportunity: an alternative to college that gives you a chance to “earn while you learn,” the potential to graduate debt-free, and a lucrative career waiting for you when you do.

ABCKEYSTONE.ORG

To register for this event complete and send form to: stephanie@abckeystone.org

ASK AN ATTORNEY Waivers of Consequential Damages – A Key Contract Clause

By: Jeffrey C. Bright, Esq. Saxton & Stump’s Construction Law Group

When a contract is breached, various types of losses can arise, and the lingo used to describe them is quite varied as well: general damages, direct damages, indirect damages, incidental damages, special damages and consequential damages (to name a few oft used terms). Not all parties use these words correctly in their contracts, and not all parties have the same understanding of what they mean. This article focuses on a key contract term dealing with losses that arise from breached contracts or negligence—consequential damages.

Generally, in the law, losses are referred to as “damages” and the general intent of a court award is to place the injured, non-breaching party in the position it would have occupied had there been no breach. General damages are the types of losses that are intuitive and foreseeable from a breach. For example, if an installed HVAC system is defective, the cost to repair or replace the HVAC system would be general damages (and also direct damages). Regardless of the building type or use, one could expect a defective HVAC system to cause losses from costs to fix or replace the defective system.

Consequential damages, on the other hand, are the derivative (“domino effect”) losses that result from the breach, which may be unique, depending on the circumstances. Using that same example of a defective HVAC system—if the building is a residential house, the impact of the defective system will be different than if the building is a hotel. The domino effect losses from a residential house might be rather limited. But the impact of a defective system on a hotel, and the domino effect losses that occur, could be significant. For example, what if due to the defective HVAC system a large convention pulls its booking? The lost income from the pulled convention would be a consequential damage.

Typical examples of significant risk of consequential damages are when the work is performed on a building/ project that is intended to have use of great economic significance, and if a breach in performance could cause the building/project to be hindered in its use. Examples include:

• Work on facilities where a failure to perform could cause shutdown of the facility or severely hinder use of the

facility to meet its separate economic productivity goals

• Work on commercial projects where there is an intended immediate use for revenue generating activities; or

• Work on government, healthcare, or infrastructure projects that have significant importance to the community or society; or

• Work on projects that are phased or connected to other related projects, where a failure to perform on the one project causes significant losses tied to other projects.

Because domino effect consequential damages can be unpredictable and excessively large, the typical approach in the construction industry is to waive consequential damages. The general philosophy being that a contractor should only be responsible for the losses that it causes for fixing its defective work, and the owner should bear the risk of derivative losses to its separate business. Thus, standard construction contract forms, including the AIA typically include a mutual waiver of consequential damages. See A201-2017 General Conditions section 15.1.7.

In a notorious example of the potentially drastic effects of consequential damages, the case Perini Corp. v. Greate Bay Hotel & Casino, Inc., 610 A.2d 364 (N.J. 1992) has served as the poster-child example of excessive losses that can be attached to a contractor when there is no waiver of consequential damages in the contract. In Greate Bay Hotel & Casino, the contractor was to perform a renovation on a casino hotel for an original contract price of $16.8 million. The project did not reach final completion on time. The hotel owner and contractor submitted the dispute to arbitration. The arbitration panel awarded the hotel owner $14.5 million in consequential damages for the lost profits the hotel incurred during the delayed final completion.

When negotiating construction contracts and assessing risk, it is important to closely evaluate the impact of consequential damages and negotiate a waiver of consequential damages (and related liquidated damages clause).

Career Development Education, Safety Training & Networking MARCH

WELCOME NEW MEMBERS!

Thank You for Your Support of the Merit Shop Mission!

Lawson Development & Construction Corp.

James Brubaker, President/Owner

PO Box 302

Hummelstown, PA 17036

(717) 307-0217

jbrubaker@lawsondevelopment.com

Sponsor: Douglas M. Dvorchak

Northeastern Casework Installations

Barry Derr, Owner

301 Island Boulevard

Sunbury, PA 17801

(570) 274-6292

barry@necasework.com

Zebby Sulecki, Inc.

James Kucera, Executive Vice President

452 Parkway Drive Broomall, PA 19008

(610) 359-6350

jkucera@zebbysuleckiinc.com

Jenson Construction, LLC

Jason Burd, Owner/Project Manager

PO Box 406 Denver, PA 17517

(717) 336-0406

jason@jensonconst.com

Sponsor: John Lehmann

R.L. Livingston, Inc.

Rick L. Livingston, President

15 Industrial Drive

Manchester, PA 17345

(717) 384-6782

rl@rllivingston.com

Sponsor: James P. Craft

JMF Underground, Inc.

Joseph M. Fisher Jr., President

841 West Trindle Road Mechanicsburg, PA 17055

(717) 697-4029

jfisher@jmfunderground.com

Wojcik Communications, Inc.

Michael Wojcik, CEO

800 West State Street, Suite 103 Doylestown, PA 18901

(215) 399-0389

mwojcik@wojcikcomm.com

Barley Snyder Awards, New Hires & Memoriam

Barley Snyder is pleased to announce that the firm has been named one of the 2022 Best Places to Work in PA by Central Penn Business Journal. The awards are held in partnership with Best Companies Group. Barley Snyder is featured under the “medium companies” category and is the only law firm included on 2022’s list.

Barley Snyder is proud to announce attorneys Brian Ott and Keith Mooney have been named to Lehigh Valley Business’s Law Power List for a second consecutive year. The list, determined by the LVB editorial board, recognizes influential attorneys in the region who demonstrate impactful leadership and continuously help improve the quality of life of the community.

Barley Snyder is pleased to announce attorney Rachael Shaw has joined the firm in its Wyomissing office. Also, the firm announced the addition of two new associates, Tasha R. Stoltzfus Nankerville and Charmaine E. Nyman.

Barley Snyder announces with sadness the passing of longtime former partner, Judge Shawn M. Long, who passed away on Saturday, January 7 at the age of 55.

McKonly & Asbury Announces Promotions

McKonly & Asbury announces promotions for its team members. Three advance to Partner and three advance to Senior Manager.

T. Eric Blocher, CPA, ASA, CVA – Partner: Eric is a Partner with 33 years of public accounting experience. As the firm’s Director of Business Valuation services, Eric has over 25 years of business valuation consulting experience and has been instrumental in developing a successful practice providing valuation and litigation support services.

Danielle Guinter, CPA, MAcc – Partner: Danielle joined McKonly & Asbury in 2005 and is currently a Partner with the firm as well as the Director of ERISA Services. As a member of the Assurance & Advisory Segment, she focuses on providing client services particularly in the areas of construction and manufacturing as well as performing employee benefit plan audits.

Marta Horst, CPA – Partner: Marta joined McKonly & Asbury in 2007 and is currently a Partner with the firm. She serves clients in a range of industries including manufacturing, retail, and financial services.

Lindsey Haney, CPA – Senior Manager: Lindsey joined McKonly & Asbury in 2014 and is currently a Tax Senior Manager with the firm. Serving as the leader of the firm’s State and Local Tax Group, she assists companies with sales tax issues and state tax compliance as well as negotiates with state taxing authorities.

Kelly Koman, CPA – Senior Manager: Kelly joined McKonly & Asbury in 2013 and is currently a Tax Senior Manager with the firm. She is a member of the firm’s Tax Segment, working primarily on S-Corporation, partnership, and individual tax returns.

Sarah Polcovich, CPA – Senior Manager: Sarah joined McKonly & Asbury in 2007 and is currently a Senior Manager in the firm’s Entrepreneurial Support & Client Accounting Segment, providing accounting and tax services for a variety of clients, including small and family-owned businesses.

Saxton & Stump Lawyers and Consultants New Hire & New Office

Attorney Seth Mendelsohn, the former executive director of the Pennsylvania Public Utility Commission, and former executive deputy insurance commissioner of the Pennsylvania Department of Insurance and regional counsel at American Water Works, has joined Saxton & Stump as senior counsel. Mendelsohn is part of the firm’s Environmental, Workplace Safety and Utilities Group as well as the Business, Corporate and Tax Group.

Saxton & Stump’s growth continues as the law firm has leased a new, larger office space in downtown Philadelphia at the historic Wells Fargo Building. The expanded, full-service office space will allow the firm not only to accommodate its current needs but also allow for future growth in numerous practice areas, adding value to all locations.

Schaedler Yesco Best Places to Work Award

Schaedler Yesco Distribution, Inc. has been named 17th in the Best Places to Work in PA, an annual award program designed to identify, recognize, and honor the best places of employment in Pennsylvania, benefiting the state's economy, its workforce, and businesses. This is the fifteenth year that Schaedler Yesco has won the esteemed award.

For inclusion in future issues of the Merit Shop Spokesman, please send your press releases to: rebecca@abckeystone.org

135 Shellyland Road

Manheim, PA 17545

February & March 2023

Insider’s Guide to EIC Entries by appointment; please contact emily@abckeystone.org

April 14, 2023

Intent to Submit form due

June 9, 2023

All entry materials due

June 28, 2023

2023 STEP Applications due*

*STEP membership is a scoring factor in ABC Chapter and National EIC Awards

October 13, 2023 Submit award acceptors

November 9, 2023

2023 EIC Awards Gala

For more information, contact: Emily Winslow

Director of Events & Sponsorships

(717) 653-8106

emily@abckeystone.org