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Maryland PHCC Contractor | Summer 2015
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maryland
PHCC CONTRACTOR MAGAZINE
MD PHCC - NEW MEMBERS........ John Geiling Gregory E. Cathell JPG Plumbing Services, Inc. Cathell and Associates Jessup, MD Sterling, VA
Summer 2015
CONTENTS .......... Talk is Priceless on Capitol Hill 6 - Gerry Kennedy, PHCC National, Executive Vice President PHCC National 2015 Board Summary Report 8 - Katharine Stradley, PHCC National, Zone Director Employees Misbehavior 10 Congratulations to All Maryland PHCC Plumbing Apprenticeship Program Graduates 15 State of Maryland Department of Labor License and Regulations Update 17 U.S. DOE Proposes Efficiency Changes 18 Maryland PHCC 2015 Calendar of Events 19 How To Reduce the Threat of Internal Credit Card Fraud 20 Instructors Wanted 21 2015 Open Enrollment & Skip Test Information 22
Senior Editor - Diane P. Kastner Maryland PHCC Contractor Magazine is the official magazine of The Maryland Plumbing-Heating-Cooling Contractors and is published four times annually. The Maryland PHCC does not necessarily endorse any of the companies advertising in this publication or the views of its writers. Maryland PHCC Contractor Magazine is designed and published by Blue Water Publishers, LLC. Articles and information published in this magazine may not be reproduced without written consent of The Maryland PHCC or Blue Water Publishers, LLC. The publisher cannot assume responsibility for claims made by advertisers, content provided by the editor, or for the opinions expressed by contributing authors.
ADVERTISER SUPPORT..... Aireco Supply 17 Bradford White 2 BrassCraft 3 Charlotte Pipe & Foundry 13 Cummins-Wagner 21 Kolbi Pipe Marker 19 Liberty Pumps 24
For more information on advertising, contact Jim Aitkins Blue Water Publishers, LLC 22727 - 161st Avenue SE, Monroe, WA 98272 360-805-6474 / fax: 360-805-6475 jima@bluewaterpublishers.com
Quality Service Contractors 14 Rheem 23 Saniflo 5 See Water 19 Service Roundtable 7 T&S Brass 9 Woodford Manufacturing 11
Cover image: Š Thawornnurak | Dreamstime.com Bangkok, Thailand - May 30, 2015 : VISA Card Sign
OFFICERS 2015 ................... PRESIDENT STEVEN M. SCHAEFER WESTMINSTER, MD (410) 876-6825 (410) 857-0011 FAX
DIRECTORS THOMAS KELLER ELLICOTT CITY, MD (410) 203-1741 (410) 203-2638 FAX
SECRETARY KATHARINE K. STRADLEY ELLICOTT CITY, MD (410) 442-2221 (410) 442-7626 FAX
TIMOTHY FELDMAN ELKRIDGE, MD (410) 536-5700 (410) 536-5705 FAX
TREASURER FREDERICK WOLF BALTIMORE, MD (410) 327-4750 (410) 563-1611 FAX SERGEANT AT ARMS RONALD LLOYD COLUMBIA, MD 21046 (410) 203-2720 (410) 203-1866 FAX
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GARLAND LEE HARDY HAMPSTEAD, MD (410) 925-9551 (410) 507-0198 FAX JIM BERNDT BALTIMORE, MD (410) 254-7473 (410) 256-4787 FAX EDGAR W. ZEPP, IV CLARKSVILLE, MD (410) 531-6712 (410) 531-5812 FAX
Maryland PHCC Contractor | Summer 2015
APPRENTICESHIP EDUCATION COUNCIL MEMBERS STEVEN M. SCHAEFER ADMINISTRATIVE CHAIR WESTMINSTER, MD (410) 876-6825 (410) 857-0011 FAX JIM BERNDT BALTIMORE, MD (410) 254-7373 (410) 256-4787 FAX VERNON L. GAUSS, JR. KINGSVILLE, MD
RONALD STIEGLER ELDERSBURG, MD (410) 876-6825 KATHARINE K. STRADLEY ELLICOTT CITY, MD (410) 442-2221 EDGAR W. ZEPP, IV CLARKSVILLE, MD (410) 531-6712 (410) 531-5812 FAX
HONORARY LIFE MEMBERS WALTER L. BREWER TIMONIUM, MD
PAUL F. GOEDEKE BALTIMORE, MD
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Talk is PRICELESS on Capitol Hill Be part of the conversation.
E
arlier this year, I wrote about the “power of together” … that, at PHCC, there’s real power – and progress – in what we can do when we combine our efforts. The Legislative Conference on Capitol Hill last month was perfect proof of this. The two-day event put the issues of more than 100 contractors and association executives in front of influential lawmakers, giving them first-hand insight into the how the decisions they make directly impact the p-h-c community. It truly was PHCC at its best, as passionate, informed PHCC members came to the table on several issues, including workforce development and the proposed furnace rule. As Rep. Virginia Foxx (R-NC) told attendees, “If you can come to Washington and tell Congress your story, then you’re an effective lobbyist.” True Stories. Big Difference. Going face-to-face with influential leaders made all the difference in the world. As testament, since the conference several Congressional offices have requested more information on how the Dept. of Energy’s proposed 92 percent furnace rule will affect PHCC members. Regarding the industry’s worker shortage, PHCC certainly gained congressional support on attracting and training skilled professionals during meetings with influential lawmakers who serve on bodies like the House Small Business Committee, the House Subcommittee on Workforce Development and the House Career and Technical Education Caucus. In fact, Rep. Glenn Thompson (R-PA), co-chair of the House Career and Technical Education Caucus, reinforced that this issue needs to be a priority not just to keep businesses viable but to keep America competitive. There’s no doubt about it, the collective power of PHCC made a strong statement on Capitol Hill. PHCC members accomplished solid progress as they met with their respective representatives, building relationships and heightening general awareness of the industry. The process reminded [6]
Maryland PHCC Contractor | Summer 2015
By Gerry Kennedy PHCC National Association Executive Vice President
me of why PHCC got started more than 130 years ago: to accomplish together what we can’t do alone Continue the Conversation. The truth is that few Members of Congress have experience in small business, which is why these connections are critical to building relationships and establishing credibility on Capitol Hill. As Dave Boda of Boda Plumbing Monroe, N.C., said of the conference, “It made me realize that change in D.C. is only going to come through consistent, focused, and informative correspondence with [representatives] in the House and Senate.” Follow Boda’s lead; take that first step: • Get involved in government relations through your local PHCC chapter. •
Contact your legislator’s district office and request a meeting to discuss issues and regulations that directly impact your business, your family, your industry.
•
Get involved in PHCC’s Political Action Committee (PAC).
•
Make the most of your experience at CONNECT 2015 in Hollywood, Fla., by attending the Political Action Committee event on Sept. 30.
•
Of course, save the date for next year’s PHCC Legislative Conference. Dates will be finalized soon!
As Legislative Conference participant Joel Long of GSM Services in Gastonia, N.C., said: “If you are going to be in business, you better be involved in politics. The politics will be involved in your business with or without you!” For more information on PHCC’s programs and opportunities, visit www.phccweb.org or call (800) 533-7694.
Summer 2015 | Maryland PHCC Contractor
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PHCC National 2015 Board Summary Report Board of Directors’ Meeting – April 21, 2015 By Katharine Stradley, Zone Director
T
he tone was upbeat on many fronts for our association during the April 21 PHCC-National Association Board of Directors’ meeting, which was held in conjunction with our annual legislative conference and visits to Capitol Hill. During the board meeting, we discussed numerous issues, including what measures we can take to help our state and local chapters. During their reports, PHCC Zone Directors were asked to convey key issues and concerns reported by the chapters in their geographic region, and relay suggestions on how PHCC can best serve its members. Licensing, workforce development, legislation and burdensome regulations continue to top the list of common challenges. There were also several comments and requests for support received through the written zone reports. If you have a question or concern that the national association can help with, please let me know when it occurs, so we can provide you with the answers or assistance you need. HIGHLIGHTS FROM COMMITTEE AND STAFF REPORTS: Strategic Planning/Workforce Development: PHCC President Kevin Tindall updated the board on the status of PHCC’s strategic planning process and the Mega Issue Task Force on Workforce Development. Among the strategic options recommended by the Workforce Development Task Force to address the challenge of finding skilled workers are the development of a career web page with sections for parents, students, those changing jobs, educators and contractors; and a “tool kit” to help contractors work with secondary and post-secondary education programs. Formal partnerships with other organizations to reach target audiences also will be a priority. Preliminary steps are being taken now to address these priorities, and funding will be proposed to fully implement them in the next fiscal year’s budget that begins in July 2015. Brand Awareness Campaign: Vice President of Member Services Elicia Magruder and Vice President of [8]
Maryland PHCC Contractor | Summer 2015
Communications Charlotte Perham noted that PHCC’s “Best People. Best Practices.®” marketing activities focus on telling the PHCC story with a unified voice throughout the Federation. Along with industry-wide promotions, recent efforts have concentrated on working with state and local leaders to incorporate the new chapter logos and brand messaging into their grassroots communications and marketing materials. Staff has also been including consumer messaging that will help members raise the visibility and credibility of the plumbing, heating and cooling professions. As evidenced by the increase in direct traffic to the PHCC website and the innovative ways chapters are adopting the brand, our overall awareness initiatives continue to resonate with contractors, industry partners and consumers. Membership: The member services team continues to work with state and local chapters to tell the PHCC story to enhance the members’ experience and grow the Federation. First quarter efforts have focused on personal outreach and communications that help members’ access national resources that will help strengthen their businesses. A new on-demand webinar series to help acquaint members with specific programs and services—e.g., navigating the PHCC website, connecting with members on the PHCC Community Network—will be launched this fall. New templates have been added to marketing toolkits for contractors and chapters to help spread the PHCC message … Best People. Best Practices.® throughout the country. Communications/Website: PHCC continues to expand and diversify its communications with members and the industry via print, online, video, mobile apps and social media outreach. New and in BETA testing, is a membership app that will allow members to participate in the PHCC Community Network and find other members via their mobile devices. The PHCC website is undergoing a facelift that will help visitors find the information and resources they need quickly.
Government Relations: Government Relations Director Mark Riso reported that PHCC continues to build credibility on Capitol Hill by offering technical expertise and providing lawmakers with real information about how the decisions they make impact our industry. PHCC also engages lawmakers to lobby federal agencies on rules and regulations harmful to the industry. Technical and Code Services: PHCC is a member of the Plumbing Efficiency Research Coalition (PERC), which has begun a Phase II investigation of reduced flows and drainline carry. This phase of the study is investigating drain impacts of reduced flows in three-inch PVC pipe. Additional work will evaluate trends of dual flush flows and other impacts on flow. PHCC has also been active with the U.S. Department of Energy (DOE) and its proposed efficiency standard of 92% for residential gas furnaces. PHCC Educational Foundation: Chief Operating Officer Cindy Sheridan reported that the Foundation programs continue to grow and evolve. The revised Plumbing 201 will be available in mid-July in time for the 2015 school year; over the next six months an interactive construction math component will be added to the Plumbing and HVACR eLearning Courses and troubleshooting simulation software will be added to the HVACR eLearning Courses;
32 contestants are expected to compete in the plumbing and HVAC apprentice contests at CONNECT; and a smooth transition from Kansas City to Louisville, Ky., for the 2015 SkillsUSA competitions is expected. The Foundation will be awarding $77,500 in scholarships over the summer. The Invest in Your Future campaign announced a state competition with a Foundation seminar sponsorship as the prize. Personnel Actions: At the end of the board meeting, Executive Vice President Gerry Kennedy announced that Robin Maher has been promoted to PHCC Chief Operating Officer, effective immediately. He also formally announced his retirement on December 31, 2015. A Search Committee has been formed to seek out qualified individuals to serve as the next EVP. The national Board is scheduled to meet again on Monday, June 29, to consider the budget for the 2015-2016 fiscal year then will meet on Tuesday, Sept. 28, just prior our annual convention and product/technology showcase – PHCC CONNECT 2015. I am honored to serve as your representative on the PHCC Board of Directors. Please contact me if you have any questions or comments. Thank you.
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10:44 AM Summer 2015 | Maryland PHCC 12/18/14 Contractor [9]
Employee Misbehavior
I
deally, you lay out your business’s policies in an employee handbook, and your workers follow them to the letter. However, sometimes employees break the rules. The infraction may be minor and therefore can be dealt with in one conversation. But sometimes the behavior carries serious consequences for your company. In the latter case, employers are often advised to consult with an HR manager or department. If your business doesn’t have those HR resources, however, you need to know what to do when some of the thornier employee issues come up. KEEP TWO THINGS IN MIND WHEN DEALING WITH A CASE OF EMPLOYEE MISBEHAVIOR: 1. Thoroughly investigate and document the situation to assess its severity. You must have adequate reason to discipline your employee from a legal standpoint. It may be tempting to follow the same set procedure for every case, but with complex issues, you need to take steps to investigate the situation to better determine your response: •
Look into your employee’s performance history to assess whether the behavior is part of a larger trend.
•
Talk to the employee. Part of that investigation is hearing the employee’s side of the story. If multiple employees are involved, it’s necessary to hear from all parties. This will help you better document the issues and decide how to proceed.
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Maryland PHCC Contractor | Summer 2015
•
Rely on facts, not emotions. If you leave out how you feel about an employee, you’ll be better able to determine how serious the situation is.
•
Carefully document what you’ve discovered.
2. If you don’t know, get help. Remember that if you are unsure how to proceed in a difficult situation, it’s smart to talk to your manager or owner, or outside HR resources or legal counsel. Three Real World Examples of Employee Misbehavior Situation #1: When an Argument Escalates Into a Physical Fight Two of your employees are always at odds. One day, a simple disagreement turns into a heated argument and suddenly, a fist is thrown. Employees fighting at work can obviously hurt themselves, but others may get injured too, which could leave the company open to workers’ compensation claims. If this happens in front of clients, you can count on lost business expenses or possible legal troubles. Even after the fight is over, the effects will linger in hurt productivity and employee morale throughout the company. Because the situation is so corrosive, you must act quickly, calmly, and directly. 1. Break up the fight and separate the parties, sending them to different areas to cool down. Make sure the employees and those around them don’t need medical attention.
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2. If serious, summon the police. Be cautious and don’t dole out blame, and allow the police to investigate the matter.
•
Get feedback from employees working under the supervisor, making sure you allow them to remain anonymous to the extent possible.
3. If permitted under your company’s policies, suspend the employees with pay while you investigate the matter.
•
Look into the supervisor’s history to see if there’s a history of inconsistently following or applying the rules.
4. Although the automatic reaction to any workplace violence is to terminate the employees, a full and fair investigation – including each employee’s side of the story and the employees’ histories – is necessary to back up any disciplinary actions.
•
Talk to the supervisor. A supervisor without a history of allowing employees to break the rules, who is willing to take responsibility, and who is proactive about fixing the situation, or who simply made an error, would merit less stringent action. On the other hand, a supervisor who routinely applies the rules inconsistently has committed a serious infraction may need to be suspended or terminated.
5. As hard as it may be to believe, that investigation can sometimes reveal mitigating factors indicating that termination is not the best answer. Consult with an HR expert, management, or even outside counsel before proceeding with discipline to make sure you are doing what’s best for your company strategically and legally. Situation #2: A Supervisor Who Lets Things Slide Part of a supervisor’s job is to enforce company rules. So when a foreman or other supervisor lets employees break those rules, things tent to snowball into larger issues. Employees might become confused about what’s expected of them if rules are applied inconsistently. Be aware that applying rules inconsistently among employees can be perceived as discriminatory; can lead to a sense of unfair treatment that decreases morale and productivity; can hurt employee relations if a high performer can slide on the rules but others can’t; and can undermine the supervisor’s and company’s status in employees’ eyes. Think of the mindset of the employee in those situations – “Why were we allowed to do that yesterday but not today?” or “When we work with Bobby, he lets us do it!” This creates distractions and resentment over not being allowed to do something that shouldn’t be happening anyway! Also, in our legal system, employee handbooks have been perceived to create an obligation between an employer and employee. A representative of the employer not following that legal obligation can set the company up for claims later. What should you do if a supervisor allows employees to break company rules? Remember that the first step is to investigate and document the situation thoroughly: •
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Determine how serious the infraction is. If a supervisor overlooks the requirement of a uniform, that might be grounds for a gentle reminder of company policies. On the other hand, allowing employees to incorrectly report time is much more serious.
Maryland PHCC Contractor | Summer 2015
Possible disciplinary actions: • Talk to the supervisor and formulate a plan to correct the issue. •
Implement increased oversight of the supervisor.
•
If it turns out that the individual isn’t supervisor material, find another assignment within your company if that is possible and is a good business decision.
•
Terminate the supervisor.
If you choose one of the first two actions, follow up to make sure the supervisor is better enforcing the rules. Situation #3: “I’m running late. Could you punch in for me?” The Fair Labor Standards Act says that employers must keep accurate records of nonexempt (hourly) employees’ hours. Committing time card fraud is therefore a serious infraction. Also, by paying employees for hours they haven’t worked, your company loses money. How should you handle one employee punching in for another? Remember that the first step is to investigate and document the issue: •
Look at your payroll records to determine how serious the infraction is for both employees.
•
Examine the employees’ histories to determine whether this is a trend or a single incident of an employee asking another to fill in a time card.
•
Interview the employees about the incident.
Also, if the following procedures aren’t in place to ensure that time reporting rules are followed, you can take this opportunity to implement them:
HOW VALUE ENGINEERING AFFECTED A HEALTHCARE FACILITY IN THE SOUTHEAST. John Neal was the plumbing designer on the project. Six months after the owners move in, he got a phone call letting him know the floor in the hospital’s kitchen is collapsing. Turns out the contractor went against the engineer’s specs and connected PVC to a 190° commercial dishwasher. Now the owners are going to have to dig up the floor and replace it with cast iron. All because they didn’t follow the engineer’s specifications. To learn more about this story and the dangers of value engineering, visit charlottepipe.com/VE.
YOU CAN’T BEAT THE SYSTEM.® [ 13 ]
•
If you use a time clock and it’s not already in a place where you can observe employees punching in and out, move it so that you can monitor the situation.
•
Hold on to copies of time cards so that they can be reviewed and compared to past time cards. Keep an eye out for discrepancies.
•
Quarterly reconcile your payroll with someone other than the person who usually handles payroll.
Possible disciplinary actions: Even if this was a one-time incident and the employees had no history of time card fraud, talk to your employees about the issue and make clear why it’s a serious issue. If this is an ongoing trend that you’ve adequately documented and investigated, suspension and termination could be the next steps. Conclusion Because employee misbehavior can disrupt morale and productivity in your business and possibly have legal and financial implications, it’s important to go through the necessary steps rather than reacting emotionally to a situation or following the exact same procedures no matter the circumstances. Proper investigation, documentation, and communication
Development
with the employee(s) who misbehaved are crucial. That information – along with consultation with experts when a problem is particularly sticky – will help you determine the proper discipline to promote a safe, fair, and productive workplace. This content was developed for the PHCC Educational Foundation by TPO, Inc. (www.tpo-inc.com). Please consult your HR professional or attorney for further advice, as laws may differ in each state. Laws continue to evolve; the information presented is as of April 2015. Any omission or inclusion of incorrect data is unintentional. Please note this article is not intended to provide legal advice or to substitute for supervisor employment law training. The PHCC Educational Foundation, a partnership of contractors, manufacturers and wholesalers was founded in 1987 to serve the plumbing-heating-cooling industry by preparing contractors and their employees to meet the challenges of a constantly changing marketplace. If you found this article helpful, please consider supporting the Foundation by making a contribution at http://www.phccfoundation.org.
THE QSC ADVANTAGE
‘‘ I have made more progress in the growth,
professionalism and internal communications of my company in the last 13 years as a QSC member than the previous 30 years before that. I only have QSC and everyone associated
‘‘
with it to thank.
Roger Fouche Schaal Heating & Cooling Des Moines, IA
Our members say it best! Quality Service Contractors (QSC) is an elite professional association that assists plumbing, electrical and HVACR service and repair contractors. We help each member reach their potential in our increasingly demanding industry. As a member, you benefit from business management services and state-of-the-art training to enhance your image and enable you to better serve the needs of your clients.
SAVE OVER $1,000 Join QSC now, get 15 months for the price of 12 Offer ends December 31, 2015. For more information call (800) 533-7694 or e-mail wallace@naphcc.org [ 14 ]
Maryland PHCC Contractor | Summer 2015
Congratulations To All Maryland Phcc Plumbing Apprenticeship School
2015 Graduates
T
he Maryland Plumbing-Heating-Cooling Contractors Plumbing Apprenticeship graduation ceremonies were held in April at the Essex Community College in Baltimore County and at the Center of Applied Technology, North in Severn, Maryland. Apprentices who attend and successfully complete the four year plumbing program receive college credits for each year completed. A four year apprentice receives 24 credits at the end of his/her apprenticeship term. Graduates awarded diplomas for successfully completing the four year program at Essex Community College were: • • • • • • • • • • • •
Dale Eger sponsored by Mike Cocolin & Son Plumbing & Heating, Inc. Cody Freisser sponsored by Mitchell Plumbing & Heating, Inc. Richard Gaster sponsored by Maryland Mechanical Systems, Inc. Joshua James sponsored by Mitchell Plumbing & Heating, Inc. Eric Landon sponsored by Ray Stefanski Plumbing & Draining Cleaning Shlomo Lazar sponsored by Honest Abe Plumbing & Heating, Inc. Stevie Moody sponsored by Mechanical Engineering & Construction Corporation Reyes Rodriguez sponsored by R. E. Robertson Plumbing & Heating, Inc. Paul Stinson sponsored by Maryland Mechanical Systems, Inc. Jake Stone sponsored by L. J. Brossoit & Sons, Inc. Christopher Wieczorek sponsored by Chilmar Corporation Darrell Wilkerson sponsored by Chilmar Corporation
The fourth year graduates successfully completed and passed the required 32 hour course in both practical and theory required and approved by the Maryland State Board of Plumbing to be certified as a Backflow Prevention Device Tester/Mechanic and were awarded their Backflow Certification Certificates at the graduation exercises. Third year apprentices attended and successfully Summer 2015 | Maryland PHCC Contractor
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completed the approved State of Maryland Gas Fitter Training Course and were awarded their Gas Fitters Certificates of Completion at the ceremonies. Completion certification were also awarded to the first second and third year classes at the Center of Applied Technology, North and Essex Community College. The Robert McLaughlin Awards for outstanding Academic achievements were presented to the following apprentices at the Essex Community College: 4th year – Dale Eger rd 3 year – Steven Hicks
2nd year – Naftoli Tropper 1st year – Shateik Marin
Recipients for the Robert McLaughlin Award from the Center of Applied Technology, North were: 3rd year – Steven McGill 2nd year – Young Sam Kim
1st year – John Shriver
We would like to acknowledge and thank our Instructors for their hard work and dedication to the plumbing apprenticeship program. Anne Arundel County – Center of Applied Technology, North Gary Coombe – 1st year Bryon Harris – 3rd year
Seth Burdick – 2nd year
Baltimore County – Essex Community College George Malone – 1st year Bryon Harris – 3rd year
Ron Hebb – 2nd year Charlie Chalk – 4th year
The Maryland PHCC Apprenticeship Council would like to give special recognition to Brasscraft Manufacturing for their generous donation to our Scholarship Fund. And, their gifting of Tool Bags for each of our graduates. “Thank You” Brasscraft. Graduating Apprentices pictured with their employers; left to right: Stevie Moody with Michelle Wittig, Mechanical Engineering & Construction; Dale Eger with Mike Cocolin, Mike Cocolin & Son; Eric Landon with Ray Stefanski, Ray Stefanski Plumbing & Drain Cleaning Services. For additional information please call the Maryland PHCC office (410) 461-5977.
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Maryland PHCC Contractor | Summer 2015
“A Total Customer Solution” State of Maryland Department of Labor License and Regulations (DLLR) COMAR Section 09.20.03.01 .01 Responsibilities of Licensees.
A. A licensee shall undertake to provide plumbing services only if the licensee is qualified by education, training, and experience to provide the required services. B. A licensee shall undertake to provide plumbing services related to gas only if the licensee is qualified by education, training, and experience with the specific gas, gas system, gas utilization equipment, and associated accessories to provide the required services. C. A licensee may not use or allow the use of a license issued by the Board for the purpose of obtaining or attempting to obtain a permit or other authority to provide plumbing services from a county or local government agency unless the licensee is: (1) Familiar with the design and purpose of the plumbing services to be provided, and, when any portion of the services provided is to be outside of a permanent structure, the ground conditions of the area;
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(2) Available to direct and control all journey and apprentice plumbers who will provide or assist in the providing of the plumbing services; and (3) Responsible for the services performed or to be performed pursuant to a contract. D. A licensee shall maintain appropriate insurance covering any plumbing service the licensee provides. Insurance provided by an employer does not satisfy the insurance requirements of Business Occupations and Professions Article, §12-501, Annotated Code of Maryland, if a licensee provides plumbing services outside the scope of employment with the insured person or business entity.
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[ 17 ]
By Mark Riso Director of Government Relations PHCC National Association
T
U.S. DOE Proposes Efficiency Changes
he U.S. Department of Energy (DOE) has an obligation to periodically review efficiency standards for a wide variety of products. Currently DOE is considering several proposals in the HVAC arena that would conserve fuel, reduce carbon emissions and ultimately save consumers operating dollars. Any adopted changes would not be implemented for approximately five years to allow industry time to make adjustments. PHCC is participating with industry stakeholders to understand the implications of the proposal. Meetings have been held by the U.S. Department of Energy (DOE) trying to explain the proposed new efficiency standard for residential non-weatherized gas furnace products to be effective in 2021. DOE has changed its previous position intending to promote regional standards for gas furnaces and now is proposing a single national standard efficiency level of 92%. PHCC along with other stakeholders expressed concern for the discontinuation of the 80% efficient class of gas furnace equipment. Many noted there is significant installed product in this class of equipment, replacement of which would face increased costs related to higher efficiency equipment and also additional changes to the venting systems. Many of these systems are in residences of economically challenged families, families who would face some difficult decisions for their heating systems. In a second proposed rulemaking, DOE has proposed increasing minimum efficiency standards for residential boilers, as shown in the table at right. The process through which these changes evolve is at the NOPR (Notice of Proposed Rulemaking) [ 18 ]
Maryland PHCC Contractor | Summer 2015
stage. In this stage, DOE puts forth ideas for industry consideration, but is not constrained by their basic proposals. Discussions with stakeholders can effect changes in the proposal or may reinforce the process of development. It is important at this phase to listen and understand the proposal, its underpinning logic, and supporting data. By careful vetting of the DOE program, stakeholders are able to support a proposal or make statistically valid challenges to the process. Bear in mind, DOE has the ability to make changes in the proposal; stakeholder challenges could be resolved by DOE during this phase. These Efficiency Standard changes, along with others in the DOE system, provide positive benefits for consumers. There are however, some drawbacks that frequently accompany changes to the status quo. Consumers and stakeholders have ample opportunity to provide suggested changes during the rulemaking process. PHCC will be filing comments and will communicate both the positives and negatives to members to allow grass roots feedback to the Agency. PHCC supports promoting high efficiency products to consumers through a transparent process that must be a result of a fair and equitable energy efficiency standard.
2015 CALENDAR OF EVENTS
Board of Directors’ Meeting
1st Tuesday of the Month General Membership Meeting
2nd Thursday of the Month 32 HR Backflow Course
Thos. Somerville Co. 1510 Tilco Drive Frederick, MD July 10, 11, 12, 2015 August 7, 8, 9, 2015 September 11, 12, 13, 2015
8 HR Backflow Re-Certification Course
8 HR Backflow Re-Certification Course Dundalk Community College 7200 Sollers Point Road Baltimore, MD July 25, 2015 August 22, 2015 September 26, 2015
Thos. Somerville Co. 1510 Tilco Drive Frederick, MD July 11, 2015 August 8, 2015 September 12, 2015
Gas Fitters Training Course and Plumbing Code Review Course For additional course information please call the Maryland PHCC office (410) 461-5977.
32 HR Backflow Certification Course Dundalk Community College 7200 Sollers Point Road Baltimore, MD July 24, 25, 26, 2015 August 21, 22, 23, 2015 September 25, 26, 27, 2015
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n Large Panel Selection
n Under 1 hp
n 120/208/240/480 Systems
n Single Phase 120V AC
508A
www.seewaterinc.com Phone: 888-733-9283 Summer 2015 | Maryland PHCC Contractor
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HOW TO REDUCE THE THREAT OF INTERNAL CREDIT CARD FRAUD Credit cards are a fact of life in the business world today.
T
hey can streamline purchases and minimize the need for cash or cash advances. They are widely accepted and recognized in situations where company or personal checks may not be. They can reduce transaction time and reduce the volume of payments, paperwork and transaction costs. Because credit cards are almost as liquid as cash, they are subject to risk. Theft or abuse by an unauthorized outside party is typically the first concern, but credit card abuse and fraud by those within an organization can also be a source of threat. Employees already have access to the credit cards, and they know the credit card issuer, number, expiration date, credit limit and, perhaps most importantly, whether their activity is being monitored. The most common types of credit card fraud are: Personal charges benefit the individual and could include gasoline for their own vehicle, meals, groceries or other personal expenditures. Double dipping is using an organization’s credit card to make a purchase and then submitting the documentation for the expenditure for reimbursement. An example is charging a business meal using the company credit card, and then submitting the invoice or receipt for the same transaction for reimbursement on the individual’s expense report. Safeguards can be put in place to reduce risk and detect mistakes or fraud. • Limit the number of credit cards and authorized credit card users. Use as few providers and cards as possible.
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Maryland PHCC Contractor | Summer 2015
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One or two issuers might fit all your needs. All authorized users should have their own unique cards that they are responsible for. They should not be loaned or be available to others. Collect and cancel cards when employees leave the organization. Establish credit limits to limit your exposure. Review your users and their needs. If they don’t need more than a $1,000 line of credit, reduce and limit it to that. Establish low or no ability to obtain cash advances. Subscribe to credit card company alerts. They can notify the organization of significant or unusual transactions as they occur. Investigate unusual activity immediately. Be able to quickly report loss, theft or unauthorized use. Maintain in a secure area a list of credit cards by issuers, account numbers, authorized users and issuer phone numbers so that contact can be made quickly if necessary. Prompt notification can reduce or eliminate responsibility for fraudulent charges. Communicate your organization’s policies. Employees are responsible for the activity on their card and for reviewing the statement for activity each period. Make it clear that the organization’s credit card is for its activities only and that fraud will not be tolerated. Violators should be terminated and prosecuted. Set the tone at the top. You can lead by example – good or bad. Receive credit card statements intact and review them. Credit card statements can be altered, revised or edited. Request a credit card statement cutoff date for all cards that facilitates your organization’s ability to obtain, review and post credit card activity once a month and before month-end to facilitate accounting.
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Review credit card activity for the type of expenditure, the vendor and the reasonableness of the amount. Do the types of transactions and the amounts seem reasonable for the organization and the user? Insist on receipts. As the credit card is used, insist that original receipts be obtained as part of the documentation for the expenditure. Do not let the invoice, the credit card receipt or the credit card statement be the only supporting piece of documentation. The credit card transaction is the means of payment. It is usually not the sole piece of documentation. Review expense reimbursement claims. Compare the expense report activity to the organization’s credit card statement, scrutinizing for the same vendor and/ or amounts. Be alert to altered amounts and claims, as well as expense report claims made months after the original charge was made. Analytically review expenses, compare them to budget and investigate variances. To effectively reduce the threat of credit card fraud, monitor credit card activity closely – and let your employees know that you are watching.
Quality Service Contractors – An Enhanced Service Group of PHCC 180 S. Washington St, Falls Church VA 22046 USA Phone: (800) 533-7694, Outside USA: (703) 237-8200, Fax: SF_CUMMINS-WAGNER MDPHCC_7.675x4.9_Layout 1 4/30/15 11:36 AM Page 1 (703) 237-7442 Visit our website www.qsc-phcc.org
Summer 2015 | Maryland PHCC Contractor
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Maryland PHCC Contractor | Summer 2015
H E A T I N G
C O O L I N G
W A T E R
H E A T I N G
C NNECTING YOU TO MORE CUSTOMERS
The future of home comfort is here, and it’s from Rheem. The EcoNet™ Smart Home System not only allows your customers to manage up to 65% of home energy use* from anywhere and enjoy perfect air and water temperatures, it also gives you the diagnostics you need to deliver the perfect level of service. Hassle-Free Installation - System automatically detects equipment. Simplified Service Calls - Descriptive alerts for homeowners identify components requiring attention. Easy Customer Relationships - Contractor contact information automatically displays in EcoNet app when equipment alerts occur. To learn more and see a full list of EcoNet Enabled products, including our all-new Hybrid Water Heater, visit RheemEcoNetConnect.com
DID YOU KNOW? WiFi Kit included at no additional charge with Prestige™ Series Electric, Hybrid, and Powered Damper Gas/Ultra Low NOx Gas Water Heaters.***
With the new NAECA regulations, our competitors’ water heating products expanded more in diameter and height than Rheem water heaters.**
*Combined heating, cooling and water heating usage as a percentage of total home energy use, according to EIA data. **Compared to A.O. Smith and Bradford White | *** WiFi Broadband Internet connection required
Summer 2015 | Maryland PHCC Contractor
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Beauty
Beast
meets
U.S. Patent #8235316, #8714917, #8769730 and Patents Pending
The new macerating toilet with RazorCutTM technology. Making impossible bathrooms possible. Locally Represented By:
ROI Marketing, Inc. 800.441.8188 www.ROIMKT.com
800.543.2550 libertypumps.com Copyright Š Liberty Pumps, Inc. 2015 All rights reserved.
1.28 GPF