Construction Today, Issue 1, 2018

TODAY

ISSUE 1 | 2018

CONSTRUCTION PUBLISHED BY THE GENERAL BUILDING CONTRACTORS ASSOCIATION

WHERE THEY STAND: PA CANDIDATES FOR GOVERNOR SPEAK OUT ON ISSUES FACING THE CONSTRUCTION INDUSTRY

plus Laser Scanning Technology Building an Envelope Warranty

ISSUE 1 | 2018 1

BUILDING TO MAKE A DIFFERENCE

Committed to Safety and Customer Satisfaction since 1929

in the communities where we live, work & play

2 CONSTRUCTION TODAY

LETTER FROM THE PRESIDENT

The change of seasons from winter to spring sends many signals that inspire moving forward. In a literal sense, we set our clocks forward by one hour. And although Philadelphians have become all too accustomed to early spring snowfall these days, the extra hour of sunlight does carry with it some excitement about the promise of warmer weather.

At GBCA, it doesn’t take the changing of the clocks or seasons to have us thinking about what’s next and the promise of a bright future. How can we better serve our members? How can we help elevate the construction industry in Philadelphia and beyond? These questions and others challenge us to improve our association and advance our mission, every day.

Beyond the bustling activity within our association — we’ve set a full schedule of programs and opportunities for members to engage with each other this spring and beyond — we recognize the importance of keeping our members informed on current trends and issues affecting the industry at

large. It’s never too early to start thinking about the next election and how candidates’ positions may have an impact on commercial and institutional construction. In this edition of Construction Today, we share the direct responses from this year’s Pennsylvania gubernatorial candidates who recently participated in a survey from the General Contractors Association of Pennsylvania (GCAP). We encourage all our members to help support pro-construction candidates and to join our advocacy efforts on the local, state, and national level.

While looking ahead, we should be careful not to lose sight of our past either. The construction industry has a rich history here in Philadelphia. We’re proud to highlight three member companies who are celebrating their centennial anniversaries. Their reflections in this issue send an inspiring message for all of us: how to successfully adapt to changing times while remaining steadfast in your core values.

Benjamin J. Connors, Esq. President General Building Contractors Association

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NOTES FROM THE PUBLISHER One of the greatest assets of our association is our diverse membership base — everyone from general contractors, to safety consultants, to insurance providers is represented among GBCA’s over 250 members! This membership base is led in part by a strong committee system, which steers various activities of the association.

Our committees are made up of members who volunteer their time throughout the year to help guide our strategies, programs, and resources. We couldn’t do our work without them, and we’re so appreciative of our members who participate in our committees.

If you are interested in supporting any of these committees by lending your expertise, talents, and ideas, we’d love to hear from you. Beyond offering leadership opportunities within GBCA, the committees offer even more networking opportunities and the chance to get to know your industry peers. Please direct your letter of interest to me, ltosti@gbca.com. We’d like to have the right people in the right seats on our GBCA bus; if you belong on a committee, please let us know!

If serving on a committee isn’t a commitment you can make right now, we hope you’ll continue to join us for various events and programs. As you can see by our event photos in the upcoming pages, the last few months have been very busy, and we’re excited to offer even more exciting and informative networking and education events this spring and summer!

Lauren Tosti Director, Marketing & Communications General Building Contractors Association

ONTRACTORS ASSOCIATION

NEW JERSEY

AIA/GBCA Joint Committee E ducation nG overnment Affairs nL abor Policy nM embership nS afety n

TODAY ENLIGHTENED

DELAWARE

This is just one of many committees at GBCA. The others are:

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PENNSYLVANIA in each issue of this magazine, to give you an opportunity to learn more about the committee’s focus and current activities.

Our first “Committee in Focus” is the Construction Leadership Council, which you can read about on page 20.

CONSTRUCTION

PUBLISHER/EDITOR Lauren Tosti ADVERTISING/SALES Lauren Tosti CONTRIBUTING WRITERS Sam Arabia / Ralph Borgess / Lance Claiborne / Frank Durso / John McDermott / Cory Robbins / Lisa Minniti-Soska / Jeffrey A. Spatz / Lauren Tosti DESIGN Vault Communications ACCOUNTING Kristin DeFrancisco EDITORIAL OFFICE General Building Contractors Assn., Inc. 36 South 18th Street Philadelphia, PA 19103 P: 215-568-7015 F: 215-568-3115 PRINTING RoyerComm 7120 Airport Highway Pennsauken, NJ 08109 P: 856-665-6400 x11 www.royercomm.com Copyright: CONSTRUCTION TODAY® registered in U.S. Patent and Trademark Office Copyright ©2004 by the General Building Contractors Association. All rights reserved. Submissions for editorial review should be sent to the editorial office address. Neither the publisher nor any individual associated with any branch of production, nor the advertisers will be liable for misprints or misinformation contained herein.

PRINTED U.S.A.

General Building Contractors Association theGBCA

@gbca

With so many activities going on in all the committees at different times, we have begun spotlighting a different GBCA committee

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ONTRACTORS ASSOCIATION

EMPOWERING LIVES AND COMMUNITIES

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CONVENTION AND TRADE SHOW NECACONVENTION.ORG | #NECACONVENTION ISSUE 1 | 2018 5

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ISSUE 1 | 2018

ON THE COVER

CONTENT

16 EXCLUSIVE ELECTION REPORT Where the Pennsylvania gubernatorial

candidates stand on construction issues

20

ASSOCIATION UPDATES 10 EVENT PHOTOS Snapshots from the Construction

Excellence Awards, Preston & Steve’s Camp Out for Hunger, Holiday Party, Silica Symposium and more

14 ABOVE & BEYOND Highlights from the 2017 GBCA Annual

Report and our Annual Meeting

20 COMMITTEE IN FOCUS

All about the Construction Leadership Council

SAFETY

38

26 PREVENTION THROUGH DESIGN Eliminating safety hazards through

the construction design process

28 BRIDGING THE GAP Three questions management can ask

themselves to create a safer job site

32 CULTIVATING A CULTURE OF SAFETY A look at GBCA’s upcoming safety

leadership program

FEATURES AND CONTRIBUTED ARTICLES 36 BUILDING A LEGACY Spotlight on three construction

companies celebrating their centennial anniversaries in 2018

38 BUILDING UPDATE A tour of the recently renovated

Museum of the American Revolution

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46

46 BUILDING AN ENVELOPE WARRANTY How to resolve this common yet

serious issue in rain screen systems

es

48 HEALTHCARE SAVINGS Are high-deductible plans right for

your business?

IN EVERY ISSUE

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50 WELCOME NEW MEMBERS 50 REFERRAL DIRECTORY

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42 LASER SCANNING TECHNOLOGY How to use this technology to

address floor flatness challenges and in green building practices

44 WHERE ARE THE WOMEN IN CONSTRUCTION? A call to action for more gender

diversity within the profession

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CONTRIBUTORS

SAM ARABIA Director of Engineering and BIM Services, Torcon, Inc.

RALPH BORGESS

LANCE CLAIBORNE

Operations Manager, Mid-Atlantic Region, HazTek Inc.

Director, Industry Relations, GBCA

SIL Re Re Bin

FRANK DURSO

JOHN McDERMOTT, CFP

CORY ROBBINS

Director, Safety Services, GBCA

Financial Advisor, Raymond James & Associates, Inc.

Business Development, EDA Contractors, Inc.

LISA MINNITI-SOSKA Partner, Real Estate Group, Mazars USA

JEFFREY A. SPATZ, CSP, CET, CHST Assistant Vice President, The Graham Company

LAUREN TOSTI Director, Marketing & Communications, GBCA

Would you like to be a contributor to the next issue of Construction Today?

Contact Lauren Tosti at ltosti@gbca.com or 215-568-7015.

8 CONSTRUCTION TODAY

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CONSTRUCTION EXCELLENCE AWARDS

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On November 14, 2017, the GBCA held the 20th Annual Construction Excellence Awards ceremony and dinner at Vie. This year, GBCA received a record number of entries and awarded winners in 15 categories.

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PRESTON & STEVE’S CAMP OUT FOR HUNGER On November 29, 2017, GBCA President Ben Connors appeared on The Preston & Steve Show in support of WMMR 93.3’s annual Camp Out for Hunger. This year, GBCA’s Construction Leadership Council donated 42,000 pounds of food to Philabundance!

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HOLIDAY PARTY AND TOY DRIVE On December 6, 2017, GBCA held its 2017 Holiday Party at Fretz Showroom. GBCA’s Construction Leadership Council also held its annual Holiday Toy Drive, which collected toys for Northern Children’s Services.

OSHA SILICA SYMPOSIUM On December 13, 2017, local OSHA area director Theresa Downs presented an interactive guide to Table 1 compliance with OSHA’s new silica standards. The presentation included case studies and applied real-life scenarios to Table 1. The GBCA Safety Committee welcomed a number of vendors who provide equipment to our members in order to make sure they are compliant. Thank you to Med-Tex Services, Inc., Worknet Occupational Medicine-Camden, Metabo, Hilti North America, High Environmental Health and Safety Consulting, and PG Tool Sales Agency.

2018 MLK DAY OF SERVICE On January 15, GBCA, the Northeast Regional Council of Carpenters, ACE Mentor Program of Eastern Pennsylvania, Clemens Construction Company, and community volunteers came together for a 2018 Martin Luther King Day of Service project. At the Francis J. Myers Recreation Center in the Kingsessing section of Philadelphia, volunteers built elevated garden planters to help enhance the nearby Cecil Street Gardens, where the community can learn about, grow, and have access to fresh and healthy food. Special thanks to local dignitaries Philadelphia City Councilman Kenyatta Johnson, PA State Senator Anthony Hardy Williams of the 8th District, and State Representative Joanna McClinton of the 191st District who supported the day’s program.

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2018 ECONOMIC CONFERENCE On January 9, the Philadelphia Business Journal held the 2018 Economic Conference.

Featuring keynote speakers Alan Berube of Brookings Institution and Marc Morial of the National Urban League, the conference examined challenges facing Greater Philadelphia in the coming year. Representatives from a variety of GBCA member companies attended, and GBCA Director of Industry Relations, Lance Claiborne, introduced one of the panels, “Competitiveness: What can Greater Philadelphia do to become a major economic hotspot?” This panel featured Jerry Sweeney, Brandywine Realty Trust; Mike Krupit, Trajectify LLC; Alison Perelman, Executive Director, Philadelphia 3.0; and Councilman Derek Green, City Councilman At-Large, City of Philadelphia.

SPONSOR THANK YOU RECEPTION On February 12, GBCA and its Board of Directors hosted a private Thank You Reception for our 2017 sponsors. The reception was held at the GBCA headquarters. We are very grateful for member companies that supported our events with sponsorships in 2017.

2018 SPRING MEMBERSHIP DINNER GBCA’s Spring Membership Dinner took place on March 8 at the Cescaphe Ballroom.

William P. Hankowsky, Chairman, President, and CEO of Liberty Property Trust, was the featured speaker. His speech covered development in Philadelphia across various industry sectors, including healthcare, education, and government. He also spoke about how new technologies will impact infrastructure and the building and construction needs of the city. It was an informative and enjoyable evening for all. Thank you to our sponsors whose support made this Membership Dinner possible.

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ISSUE 1 | 2018 13

ABOVE AND BEYOND CELEBRATING A YEAR OF ACCOMPLISHMENTS AT GBCA’S 128TH ANNUAL MEETING On Monday, January 22, 2018, GBCA held its Annual Meeting at the Union League of Philadelphia. Over 400 GBCA members and guests came together to celebrate another year of accomplishments for the association and its members.

Former Eagles quarterback Ron Jaworski was the featured speaker at the event, providing perfect timing on the heels of the Philadelphia Eagles championship victory and road to victory at Super Bowl LII. GBCA also honored the graduates of the Supervisory Training Program and awarded Philip Radomski of Frank V. Radomski & Sons, Inc. the Distinguished Director Award. Attendees received a sneak peek of upcoming campaigns and special initiatives set for 2018, and a copy of our 2017 Annual Report.

2017 ANNUAL REPORT HIGHLIGHTS

20%

Increase in Construction Today readers and Facebook and Twitter followers, since 2016

31%

Increase in GBCA’s tuition reimbursement program, since 2016

46%

Net profit five-year annual growth rate for the association

63%

Total sessions with labor and industry leaders in 2017

110%

Increase in attendance at Eggs with OSHA, from 2015

200%

Increase in attendance at our Membership Dinners, from 2015

Download and read the entire 2017 Annual Report at gbca.com/blog/gbca-2017-annual-report.

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A G s

GBCA EXCLUSIVE ELECTION REPORT

WHERE THEY STAND: THE 2018 CANDIDATES FOR PENNSYLVANIA GOVERNOR SPEAK OUT ABOUT THE ISSUES FACING THE CONSTRUCTION INDUSTRY

W w t c e t g b

E a a i c P

M w b g p p i e c a

W b b r r j

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Tom Wolf (D, Incumbent)

Laura Ellsworth (R)

Paul Mango (R)

Scott Wagner (R)

by Lance Claiborne, Director of Industry Relations, GBCA We will cast our votes for the Pennsylvania gubernatorial election come November, but it’s not too early to learn the priorities of the candidates and where they stand on important issues affecting the construction industry. The General Contractors Association of Pennsylvania (GCAP) recently surveyed the candidates on their stance on the economy and wages, workforce development, and current legislation. Read on for the canidates’ responses.

Editorial Note: Some candidates’ responses may have been edited for length.

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As leaders representing the commercial construction industry, GCAP is interested in hearing your legislative priorities. Why should the construction industry show support for you?

Wolf: I am dedicated to creating a government and an economy that works for all of the people of Pennsylvania. This begins with education. After restoring the $1 billion of education funding that had been cut by Governor Corbett, I am continuing to invest in early childhood education programs and career and technical education. I will also continue to focus on policies and investments that foster the creation of good-paying jobs for the middle class, encourage partnerships among business and our education system, and lead to a strong economy.

Ellsworth: The three priority issues of our campaign are: (1) job creation and economic growth; (2) infrastructure and transportation; and (3) education and workforce. All of these issues are grounded in the fundamental building blocks of any successful enterprise: a clear business plan and a sound budget process — neither of which Pennsylvania has today.

Mango: I am the only candidate who has put forth a detailed plan for what they envision for the future of Pennsylvania. My priorities will be to get Pennsylvanians working again and to give our children and grandchildren jobs and opportunities right here in Pennsylvania. My priorities will be: creating an environment for economic growth and prosperity; education alternatives that teach our children to succeed in the modern economy, including bringing dignity back to vocational education; healthcare that people can afford; addressing the opioid crisis; honoring our veterans, law enforcement and first responders; and creating a more efficient, effective and transparent government.

Wagner: The construction industry should support my campaign, because in me they’ll have a governor who will treat them, and all business owners, like the valuable job-creating entities they are. I will reduce — by legislation or executive order — the punishing taxes, rules, and regulations that beat them up, close them down, diminish jobs, and kill the economy.

Everyone benefits from a strong economy. How can your priorities grow the economy in Pennsylvania?

Wolf: I’m dedicated to building an economy that works for everyone, but that can’t happen unless all workers have opportunities to succeed. I will continue to invest in more skills training, workforce development, and apprenticeship programs. I’ve worked to grow our economy for all workers by making it easier for small businesses to start, investing in schools, and expanding career and technical education opportunities.

Ellsworth: Government does not grow the economy. The private sector grows the economy, and the job of government is to produce an environment in which the private sector can act in the most effective and efficient way, unhampered from unreasonable regulation and red tape. Our disciplined approach will enable those in the private sector to have the predictability, focus, and workforce necessary to conduct productive planning and undertake growth strategies. We will focus on investments — governmental, P3, and private — that further collective economic growth.

Mango: My number-one priority as governor is to Restore the Dream of America to the People of Pennsylvania by creating economic growth that will lead to well-paying private sector jobs. We have so many advantages in Pennsylvania, including access to critical markets, natural resources, and highly skilled workforce in critical industries.

Wagner: As a business leader for the last 37 years, I will work to ensure that favorable policies are implemented which will ensure economic growth and situate Pennsylvania as an economic powerhouse in the Northeast. I recognize that overregulation and over-taxation runs businesses out of Pennsylvania and stops future businesses from opening here as they seek a better business climate. I will evaluate every current state and local government imposition — including taxes, regulations, permitting, and processing delays — for its impact on economic development and growth, and my administration will remove the barriers to success.

The construction industry workforce in Pennsylvania is currently facing some challenges to attract workers. How would you address this issue?

Wolf: Our education system should focus on ensuring students are college or career ready. That’s why I’ve worked with our Department of Education to revisit how we are measuring success. Under my leadership, the Department of Labor & Industry launched a new Apprenticeship & Training Office in 2016. Since then, it has worked with high schools, businesses, and education institutions to increase the number of apprentices in the state by more than 10 percent. Continuing to invest in skilled training programs is key to ensuring we have the skilled workforce to meet today’s needs as well as future needs. That’s why my 2018-19 budget calls for additional investments in apprenticeship programs.

Ellsworth: One of the first things we need to do is leapfrog over the “college vs. technical/trade school” debate. We should moot the debate by linking together our trade schools and our vast college and university system so that a student can get the training that he or she needs for the construction industry from a specialized school that also provides a university credential. To actually create those linkages, we would partner with the contractors to develop curricula for our university and community college systems, and provide internship and summer employment opportunities for students in their chosen field. We should have a Governors School, one that is competitive and clearly focused on the development of trade skills, including construction, and we should emphasize that it is a benefit to students to obtain work credentials even if they intend to pursue additional education going forward.

Mango: The Commonwealth has lost 300,000 manufacturing jobs in the last two decades. Employers need workers who work well with their hands and with modern machinery: they need carpenters, plumbers, laborers, electricians, machine tool operators, operating engineers, bricklayers, and steam pipe fitters, to name a few. Yet at the same time, we have nearly 200,000 unfilled positions in the trades throughout the Commonwealth. It is time to bring dignity and recognition back to the trades and to those who apprentice our next generation of skilled laborers. I will make skilled vocational training a priority and create tens of thousands of well-paying middle class jobs.

Wagner: Burdensome taxes and regulations keep many businesses from being able to pay attractive wages, but beyond this, is the lack of skilled labor. I know from my own four decades of private sector experience that there are less and less people who possess the skills needed to operate a business that depends on those skilled positions.

While there is an abundance of skilled jobs in the Commonwealth, which deliver good wages, job security, and career path, there are not enough people to fill them. We have to encourage an educational structure that shows children that a pathway to work does not always mean four years at college. It can mean career and technical training, ISSUE 1 | 2018 17

shorter degree programs, and industry certification programs. My administration will retool the thinking in our schools by emphasizing the respect these vocations deserve, and the value these jobs deliver to the family, the community, and the economy.

It appears every legislative session that Prevailing Wage is under attack. Lowering workers’ wages may not be an ideal approach to attract future workers. Where do you stand on Prevailing Wage?

Wolf: I will stand in the way of any attempts to weaken prevailing wage laws. As long as I’m governor, I will protect your ability to fight for higher wages, good benefits, and worker protections. I’ve also consistently called on the legislature to raise the minimum wage. I took matters into my own hands by signing an executive order to raise the minimum wage for government employees and contractors. I have been, and will continue to be, your last line of defense against anti-worker policies, and I am committed to making sure that Pennsylvania workers are treated fairly.

Ellsworth: I would not modify Prevailing Wage. As a practical matter, it is a “mini-Davis Bacon Act,” and many of the largest projects are governed by the “adult version” in any event, and are likely to be more so if federal transportation legislation is passed. In addition, at the moment, a labor shortage is driving wages to a competitive level. As a practical matter, the Act is not having any materially negative impact on public projects. In fact, wages are a benefit: the family-sustaining wages of the construction industry are a primary driver of developing the workforce that will be necessary in the near term to staff up the major projects already on the drawing board. Therefore, we should leave Prevailing Wage where it is and focus our attention on other important legislative initiatives, such as the elimination of the Separations Act. Mango: Pennsylvania’s Prevailing Wage law was enacted in 1961 to protect Pennsylvania workers from out-of-state competition mandating that workers were paid the prevailing wage in each region of the state on all public construction contracts over $25,000. According to U.S. Census data, Pennsylvania government spends more than $10 billion on construction. It is estimated that prevailing wage raises the total cost of construction projects by 20 percent on average.

This amounts to about $2 billion in extra costs for Pennsylvania government/taxpayers each year. I would support increasing the threshold on public projects to $200,000 and indexing it going forward, which would reduce costs for taxpayers. My number-one priority, though, will be to get Pennsylvanians working again by growing our economy and allowing innovators and job creators to prosper. If we do this, skilled workers and the middle class will prosper.

Wagner: Many taxpayers in this Commonwealth feel they are unjustifiably funding projects in excess of what they should cost, which is why many members of the General Assembly support a repeal of the Prevailing Wage Act — their constituents have requested they do so.

One area that I do believe taxpayers are hit the hardest is in relation to school construction and renovation projects. As a fair means of permitting the taxpayers to weigh in on these issues, I would support a referendum process that would permit the voters to decide whether or not they want their local schools subject to the Prevailing Wage Act. Since the taxpayers are funding these projects, we should allow them to weigh in on the cost requirements for those projects.

GCAP believes in having the freedom of choice concerning construction delivery method. The Separations Act is an archaic mandate enacted in 1913 that only allows for one delivery system, Multiple Prime Delivery. Due to the inefficiencies of Multiple Primes, this delivery system is only required in three states; meanwhile, 18 CONSTRUCTION TODAY

47 states, the federal government, and the private sector all benefit from choice in construction delivery. What are your thoughts on the modernization of the Separations Act? Wolf: The Department of General Services has been collecting and analyzing data regarding the Separations Act. Ellsworth: The Separations Act should be abolished. The inefficiencies, delays, cost-overruns, proliferation of claims, and lack of coordination created by the Act can no longer be tolerated, particularly because the purported benefit — lower cost to the taxpayer — is illusory at best. The practical problems created by the Act are manifest. The lack of centralized management and accountability fosters delay, errors, and cost-overruns, and spawns claims and disputes, all of which increase the cost and delay on projects. Moreover, the “balkanization” created by the Act effectively deprives public projects of the most progressive delivery systems, like Design/Build and Integrated Project Delivery, which depend on coordinated and collaborative processes. Finally, but perhaps most importantly, the Act makes it challenging, if not impossible, to provide a unified safety system for all the workers on the project.

Mango: I believe to rely solely on the Multiple Prime Delivery method for public construction projects is outdated, inefficient, and more costly to taxpayers. Relying upon government employees to serve in a role in which they do not necessarily have the experience and training, such as the general contractor for a public construction project, seems absurd. Today’s construction industry can do it better, safer, and more cost effectively than 105 years ago. While there could be contracts where a Multiple Prime Delivery system makes sense, the same can be said for design-bid-build and integrated project delivery. I believe it is time to allow the Pennsylvania construction industry, government, and the taxpayers the ability to choose the best delivery methods.

Wagner: I would absolutely work to repeal this antiquated statute.

The Commonwealth should not have to endure these costly constraints, and we should work to remove any inefficiencies that end up costing us more money in the long run. I would support the passage of Senate Bill 744 (Folmer) were it to be considered.

GCAP members are renowned for having a safety-first mentality.

Due to the opioid epidemic, construction workers and the general public are put in harm’s way. How can you help on this issue?

Wolf: I have made combating the opioid crisis one of my top priorities.

Over the past three years, I’ve expanded access to treatment for more than 125,000 Pennsylvanians through Medicaid expansion and by establishing new, innovative approaches to treatment, like our Centers of Excellence and PacMAT program, expanded the use and availability of naloxone to save lives, and enacted significant reforms to address over-prescribing and improve education, which has led to a reduction in doctor-shopping by 86 percent and overall opioid prescribing by double digits. We’ve established a new Opioid Operations Command Center, extended a hotline that connects residents to the help they need, and eliminated barriers for substance users to get into treatment.

Ellsworth: The opioid crisis is yet another example of government doing a lot of talking, but not enough acting. The problem is of particular concern in industries like construction that involve heavy physical labor and the need to control pain associated with that physical exertion.

The first thing necessary is education of the patient, with clear explanation of the risk of addiction and the prescription of the “least addictive alternative.” Education of the dangers of opiates and the preferred use of non-opiates is essential. Where addiction has resulted from the use

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of prescription opiates, particularly over a prolonged period of time, workers should be encouraged to seek treatment and should not be penalized for seeking that help. Danger on the worksite often arises when a situation has been concealed rather than dealt with.

Mango: The opioid epidemic knows no economic or geographic boundary — it has affected Pennsylvanians across our state from every walk of life. Drug overdoses are killing nearly 100 people a week in Pennsylvania. To date we have treated the epidemic as a clinical issue; as Governor, I would broaden this to include social determinants — particularly “diseases of despair” — which lead to addiction.

I would go one step further than the current declaration to develop a comprehensive strategy focusing on prevention. We must create a structure that engages with all relevant stakeholders — pharmacists, prescribers, social workers, insurers, educators, and Pennsylvanians at large — to pursue a plan.

Wagner: One of the largest issues we currently face is the opioid and heroin epidemic. Not only are we losing our citizens at a staggering rate, but it is also a major cost driver for families battling this disease and for the Commonwealth as a whole. From my personal experience as a co-founder of the York Regional Opiate Collaborative, I know that the most effective way to address this epidemic is through a multipronged approached focusing on prevention, treatment, and recovery.

We must implement strategies to address any stigma associated with addiction and break down administrative barriers to provide wider access to treatment and counseling. We must also address and fund those programs that provide individuals a pathway to life after drugs.

If you win the 2018 governor’s election, what will your legacy be 20 years from now?

Wolf: We’ve accomplished a lot together these past three years. We’ve restored school funding, expanded access to health care, increased apprenticeship and skills training opportunities, and dedicated resources to fight the heroin and opioid epidemic, to name a few. But there’s still a lot of work to be done. I’m committed to building a better government, economy, and future for all Pennsylvanians. I want to be remembered as the governor who fought to change Harrisburg, and I’m asking all Pennsylvanians to join me in working towards this goal.

Ellsworth: Pennsylvania will be on its second 10-year business plan, having fully achieved the goals of the first, and still working with the vision, planning, focus, and dedication to serving the interests of the people of Pennsylvania, rather than the politicians, with the private sector still tightly integrated into the functions of government.

Mango: Quite simply, to bring our jobs and our children home. Currently, Pennsylvania continues to mortgage our children’s future through higher taxes and borrowing to pay for ineffective spending today. We must grow our economy now to ensure our future prosperity.

Wagner: My legacy will mark a shift away from a government that serves itself, to a culture of service to the people — one that brings back good stewardship, people-centered policy and a booming economy. My legacy will serve as a model for those seeking to understand how, with limited government interference, Pennsylvania was able to rise from the bottom of the nation to become an economic powerhouse. n

Support Pro-Construction Candidates Do your part to help elect pro-construction politicians. Support the GBCA Political Action Committee!

Learn more and donate now at gbca.com/advocacy.

ISSUE 1 | 2018 19

COMMITTEE IN FOCUS

CLC

THE WHAT, HOW, AND WHY:

by Lauren Tosti, Director of Marketing & Communications, GBCA The Construction Leadership Council (CLC) was established to fulfill the need to cultivate the next generation of leaders in the construction industry, as well as the association, both at the local and national levels.

What do you get when you join the CLC? CLC committee membership is free per company. Companies may assign as many of their employees as they wish to participate in the low-cost CLC events and training. One important key to surviving in today’s economic climate is having a well-educated staff that 20 CONSTRUCTION TODAY

is confident that the company they work for cares about them.

Knowledge is power — strength, ability, and potential.

Service - Education - Networking - Leadership It is critical that the young professionals within GBCA’s membership develop into the future leaders of our industry, community, and our association. Through education, networking, and service, each member of the CLC will grow to understand that building your company and your personal brand starts with building relationships. Our goal

:

p

y l

is to develop the future leadership of GBCA that will continue to construct an industry that becomes safer and more productive.

Mission Statement The CLC is a group of young construction professionals who are committed to maintaining, improving, and promoting the construction industry and our association through education, networking, and service. The CLC promotes the mission of the GBCA while building the future foundation for our association, industry, and leadership.

The CLC is a forum that performs the below: n

To be an open opportunity to exchange ideas

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o be an entry vehicle into the GBCA/AGC to promote new T member involvement

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To foster a strong network among peers

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To create a foundation for future development of the industry

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o discuss the most important issues and provide feedback to T GBCA leadership

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To provide leadership skills

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o provide a mentoring program with established officers and T committee members

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o structure GBCA/AGC and the construction industry for the T coming decades

every day, and offers the opportunity

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To network with similar organizations in the industry

which we work through philanthropic

“

The CLC has provided a great platform for building new relationships and staying educated on the ever-evolving practices and technology we use to give back to the communities in

CLC Steering Committee

activities. It also provides access to

The CLC Steering Committee members serve at least two-year terms. Incoming Steering Committee members will be elected by the seated committee in December of each year. Consideration will be given to interested GBCA member employees. The CLC Steering Committee Chair will be appointed via recommendation of the Steering Committee and approved by the GBCA Board Chair for a two-year term.

the national AGC and CLC network,

Steering Committee:

offering updates on nationwide industry trends, economic forecasts, and introductions to amazing people all over the country. I am happy to be a member of this great organization

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CLC Chairman/Membership Chair: Melissa Wyatt; Torcon, Inc.

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LC Vice Chair/CLC Safety Chair: Reggie Asare; Skanska USA C Building, Inc.

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CLC Events Chair: Casey Perry; Revolution Recovery, LLC

new seminar topics, so feel free to

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LC Community Service Chair: Gene Rose, Jr.; Armor Masonry C Restoration, Inc.

pass them along!

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CLC Government Affairs Chair: Ronald Zawacki; Siemens Industry Inc.

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LC Education Chair: Mary Kate Radomski; Frank V. Radomski & C Sons, Inc.

and to serve as your CLC Chairman — I’m always open to suggestions for

”

— Melissa Wyatt, CLC Chairman, Torcon, Inc.

ISSUE 1 | 2018 21

A GBCA’s Construction Leadership Council is looking for the next generation of leaders! n

Do you want to be a leader in the construction industry?

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Do you have interest in networking and sharing ideas with your peers?

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re you an up-and-coming leader in your company and want to get A more involved with other businesses in the industry?

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o you have an eye for philanthropy and want to lead the GBCA’s D philanthropic efforts?

Council Members: Open Membership: Open to member contractors, subcontractors, suppliers, and professional associates that have a minimum of 2-5 years of experience in the construction industry.

CONNECT WITH THE NATIONAL CLC Visit AGC.org and join the AGC CLC listserve to receive Leadership-LINK, the AGC CLC newsletter; announcements; and information about upcoming events. To join the listserve, log in or create an AGC profile and check off the Construction Leadership Council eforum box.

For more information and to be added to the CLC mailing list, contact Lauren Tosti, ltosti@gbca.com. n

2018 CONSTRUCTION LEADERSHIP COUNCIL CALENDAR OF EVENTS DATE

EVENT

LOCATION

April 5

Phillies Opening Day & Networking at Xfinity Live

Citizens Bank Park

May 10

CLC Leadership Series: Work-Life Balance

GBCA

May 18

Philabundance Day of Service @ Farmer’s Market

Front & Tasker

June 7

Hard Hat Tour

Lincoln Square

June 22

Alex’s Lemonade Stand

GBCA

July

Summer Happy Hour/Kickoff for Back-to-School Drive for Northern Children’s Services

GBCA

September

Hard Hat Tour

Aramark

October 11-12

CLC Leadership Series

GBCA

November

CLC Networking: Bowling

South Bowl

November

CLC Camp Out for Hunger

Xfinity

December 5

22 CONSTRUCTION TODAY

Holiday Party + CLC Toy Drive for Northern Children’s Services

Fretz Showroom

DREXEL UNIVERSITY AND GBCA ARE INVESTING IN YOUR FUTURE

EARN YOUR DEGREE ONLINE Through a partnership with Drexel University Online, employees of GBCA member companies have exclusive access to a 10-40% tuition savings on over 140 top-ranked online programs from Drexel University. Students who enroll in the online MS in Construction Management program are also eligible for the GBCA tuition benefit.*

PA RTN ERSH I P BEN EFITS I N CLU D E: 10-40% new student partner tuition savings on online degrees and certificates for you and your immediate family

Dedicated support from enrollment to graduation

Additional benefits for military servicemembers, veterans and their immediate family

No application fee, deferred billing options available

G E T STA RTED TO DAY:

ONLINE.DREXEL.EDU/GBCA *GBCA-sponsored education courses are available to employees of the Active and Associate member companies, as well as companies that contribute to the GBCA-administered Industry Advancement Program (IAP). The GBCA education program is intended to provide continuing education opportunities for industry personnel. As of August 1, 2015, employees of Active and Associate members and IAP contributing companies are eligible for reimbursement up to $2,000.00 per pupil, per semester for any of the approved sponsored courses. The maximum tuition reimbursement for each student is $4,000.00 per calendar year. Limited space is available at each institution, and tuition reimbursement is at the discretion of GBCA.

ISSUE 1 | 2018 23

CONTINUE TO BUILD YOUR FUTURE...

Complete Your Apprenticeship and Pursue Your Degree!

Use the Carpenters’ Apprenticeship Training for Credits Toward a College Degree!

• Community College of Philadelphia Associate’s Degree in Construction Management • 18 credits awarded for completion of Carpenters’ Apprenticeship • 63 total credit program • Affordable, Convenient and Flexible • Apply for GBCA’s Tuition Reimbursement Program. Up to $2,000 a semester for a total of $4,000 a year

For more information, contact Angela Hendrix, Director of Education & Professional Development at GBCA at ahendrix@gbca.com or 215-568-7015.

24 CONSTRUCTION TODAY

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ISSUE 1 | 2018 25

PREVENTION THROUGH DESIGN:

by Jeffrey A. Spatz, CSP, CET, CHST, Assistant Vice President, The Graham Company and Christine M. Fiori, PhD, PE Program Director and Clinical Professor, Construction Management Albert Einstein is credited with defining insanity as doing the same thing over and over but expecting different results. When it comes to workplace safety, one could wonder if Einstein’s words were prophetic.

For too long we’ve chased regulatory compliance to prove we’re not violators, policy for policy’s sake, bloated programs, and lagging indicators because it’s often easier to look back than to look ahead.

We have little to show for the effort and trouble except inefficiency, frustration, and sagging bottom lines. Now, there may finally be rest for the weary — at least those weary enough to let go of the insanity.

A Growing Trend For more than a decade, there’s been a growing trend towards weaving safety and incident prevention into the fabric of the workplace.

We’re seeing more companies training their leaders and personnel to actively identify existing and predictable hazards and providing them with the tools and authority to promptly correct those identified hazards. There is an increasing familiarity with and implementation of the hierarchy of controls among rank and file workers. Policies are being designed to focus on safety first and compliance second and companies today are demonstrating that to be effective, safety must be built in — not bolted on.

Prevention through Design (PtD) One of the more exciting developments with this trend, which is gaining increasing traction within the workplace, is the concept of Prevention through Design (PtD), sometimes also referred to as Safety through Design. The Centers for Disease Control notes that PtD seeks “to eliminate hazards and minimize risks early in the design or redesign process and incorporate methods of safe design into all phases of hazard and risk mitigation.” In other words, PtD weaves safety and incident prevention into the fabric of the workplace. Deb Dickerson, PhD, CIH, CSP, CHMM, an Associate Professor of Civil and Environmental Engineering at Virginia Tech, further defines PtD as “any design of tools, equipment, materials, processes, or facility/infrastructure components that will substantially reduce or eliminate the hazard.”

PtD as a formal concept originated in the early 1990s when a group of safety professionals concluded that too many employers were 26 CONSTRUCTION TODAY

unaware of “design causal factors” in workplace incidents. As a result, corrective actions related to incident reports were not entirely effective. According to Fred Manuele, one of the aforementioned safety professionals, those employers that applied the PtD concept could expect: 1. Improved productivity 2. Decreased operating costs 3. Significant risk reduction 4. Avoidance of expensive retrofitting ANSI/ASSE Z590.3 “Prevention through Design Guidelines for Addressing Occupational Hazards and Risks in Design and Redesign Processes” indicates that the goals of applying the principles of PtD in the workplace are to: 1. Achieve acceptable risk levels 2.

Prevent or reduce occupationally related injuries, illnesses, and fatalities 3. Reduce the cost of retrofitting necessary to mitigate hazards and risks that were not sufficiently addressed in the design or redesign processes An Employer Already Experiencing the Benefits Philadelphia D&M, a large commercial contractor located in Southeastern Pennsylvania, has grabbed onto this concept in a big way. They’ve taken some practical steps to reduce opportunities for incidents such as moving most of their electrically-powered hand tools (e.g. screw guns) to battery-powered tools (thus eliminating the need to drag around extension cords), and switching their metal cutting blades on their chop saws from carborundum blades to diamond blades (thus eliminating sparks from the cutting operation and reducing the blade change frequency).

Those items are only a small part of their story. The move that’s really making waves is their determination to bring in house a large piece

of what was once their field production. By doing so, they can exert more control over quality, processes, and procedures. By focusing on pre-fabrication, they’ve gained efficiency, improved quality, adapted to increasingly tight schedules, and reduced the need to flood a project with personnel and material. According to Craig Melograno, Philadelphia D&M President, they’re “moving from constructing in the field to installing in the field.”

Where else has this effort shown an impact? On their work-related injuries. Since hitting more of their stride with the prefabrication process, Philadelphia D&M has seen their preventable sprain-strain incidents plummet. Mere coincidence? Hardly. By reducing the amount of material handling in the field, they’ve reduced the opportunities for material handling injuries. By reducing the need to flood a project with personnel and material, they’ve reduced congestion in the field. By increasing efficiency, they’ve increased productivity and reduced the need to rush to meet project schedules. By increasing quality, they’ve reduced the need to perform rework. By weaving safety into the fabric of the workplace and focusing on prevention through design, they’re proving the concept that safety works best when it’s built in — not bolted on.

There’s Hope on the Horizon If your organization is doing the same thing over and over again and finding the results less than satisfactory, there’s hope. You can start the change process today. Here are five recommendations to begin the journey: 1. Ensure you have employees who can identify existing and predictable hazards in their work environment.

2. Empower those employees with the authority to promptly address any identified hazards.

3. Implement a hierarchy of controls for identified hazards. This means you should be asking the following in descending order of effectiveness: a. Can we eliminate the task/operation that poses the risk/hazard? b. Can we substitute a safer task/process/material that would eliminate or reduce the hazard? c. Can we use an engineering control such as a guard or barrier to separate workers from the hazard? d. Can we develop a work rule that would serve to eliminate or control worker exposure to the hazard? e. Can we use personal protective equipment to protect our personnel when exposed to the hazard?

4. Examine how your workers are performing the work and identify areas for safety and efficiency improvements.

5. Determine where changing the design of the process, materials, tools, or work environment could prevent hazards and inefficiencies.

Interested in learning more about how your company can make the most of PtD? An ounce of prevention really is worth a pound of cure.

Call The Graham Company’s Safety Services today at 215.567.6300. n ISSUE 1 | 2018 27

BRIDGING THE GAP BETWEEN MANAGEMENT AND FIELD EMPLOYEES THREE QUESTIONS TO A SAFER JOB SITE

“ Get out in the field

and ask questions, get feedback, and implement a company safety program that is actually created by the whole company.

”

By Ralph Borgess, Operations Manager, Mid-Atlantic Region, HazTek Inc. As a safety consultant, I am often asked by clients how to implement an effective safety program and bridge the gap between field employees and upper management. By starting my career in the trades, and eventually transitioning into safety management, it has allowed me to see both ends of the spectrum and has given me insight into the importance of working together to create a positive safety culture. I ask my clients three simple questions: How often do you visit your job sites and speak to employees one on one?

If your answer to this question is quarterly, or only when there is an incident, then you are doing yourself a disservice. A regular presence by upper management lets employees know that you care. Simply showing up for big meetings or when there are problems can have a very negative impact on employee morale.

You need to get out there, meet your employees, and get to know them on a personal level.

If you are going to put time and money into implementing a program 28 CONSTRUCTION TODAY

that can save employees’ lives, then you need to show you care about the lives you are saving. Believe it or not, field employees enjoy being given the opportunity to interact with management, especially when they think of you as a peer. They are much more likely to engage with you and present an issue or a suggestion if they feel comfortable approaching you. Schedule some time this week to get out to a job and simply meet the people that work for you. Don’t do an audit or tell them what they might be doing wrong — just talk to them and remember that positive reinforcement goes a long way. Make yourself available, listen, follow through, and put in the time that is needed to earn the respect of employees.

Do you ask your employees for feedback?

Prior to implementing a new policy or procedure, you should speak to the people who will be most affected by it. Too often, procedures are created by people who spend most of their days sitting in an office without any real field involvement and by the time a new safety policy trickles its way down to the field level it has no real substance. Worse yet, trickle-down safety policies often lack the buy-in of employees.

Get out in the field and ask questions, get feedback, and implement a company safety program that is actually created by the whole company.

employees’ health and well-being, but there are many other negative consequences of a poorly-managed safety program.

For example, hand protection is an important safety measure, so it may be a logical consideration to require your employees to always wear safety gloves. Sounds like a solid policy. But now, imagine asking your employees how they feel about a new policy that requires them to wear gloves all of the time or if the mandatory gloves would be appropriate for the work they are doing.

A high EMR (Experience Modification Rate) or TRIR (Total Recordable Incident Rate) can limit a company’s ability to bid on certain work and drastically increase insurance rates, but not all employees are aware that these designations can compromise the company’s fiscal wellness and create a knock-on effect that can lead to layoffs, downsizing, salary reductions, employee turnover, and possible closures.

Years ago, I had an employer who provided work gloves to be worn at all times. I abided and wore them, but quickly realized that the gloves nearly got caught in the grinding wheel I was using, so I took them off. A safety manager came by and, without hearing my explanation, threatened me with a write-up if I didn’t comply with the company’s glove policy. So what did I do? I took the gloves off when I used the grinder and had my partner watch for the safety manager… not the best solution for anyone.

Part of the culture of safety means educating the whole team to understand that what is important to them is important to the company... and vice versa.

Does that sound familiar? It happens every day. The safety manager was so focused on enforcing policy that he missed an opportunity to receive valuable feedback on an even greater safety risk. Rather than simply implementing a policy, management needs to bring in field employees to have input in the process. I highly recommend forming a Safety Committee comprised of field staff and management to openly share ideas and voice concerns. In the long run you will end up saving time — and possibly lives — by not having to constantly enforce policies that do not have employee support.

When it comes to safety, mutual respect between management and field employees is essential and understanding each other’s role and mission in the process is crucial. There should be no gap or divide, and egos need to be checked at the door. After all, it is not about paperwork, policies, or procedures… it’s about lives.

Does everyone fully understand the impact of safety?

Obviously, ineffective safety procedures can dramatically affect

Take the time to review, with the whole organization, how critical it is to adhere to effective safety policies — not only to prevent injuries and save lives, but also for job security and company strength. The transparency would be welcomed.

Ralph Borgess, HazTek Inc. Operations Manager, Mid-Atlantic Region, began his career in the trades twenty years ago and has spent the last decade working with various companies in Safety Management. To learn more about bridging the gap between management and field employees, or any of our other safety services, contact HazTek Safety Management at 888.842.9835 or go to www.haztekinc.com. n

”

ISSUE 1 | 2018 29

S WORLDS LEADING CONSTRUCTION BROKER Construction Risk Partners, a member of JLT Group, is part of the world’s leading construction broker with over 400 specialists and arranging coverage for projects valued at over $125bn globally. Our specialists deliver a comprehensive suite of surety and insurance solutions to protect contractors assets.

TO ENGAGE ONE OF OUR SPECIALISTS, EMAIL: info@constructionriskpartners.com Construction Risk Partners www.constructionriskpartners.com

30 CONSTRUCTION TODAY

V

SAFETY, HEALTH & RESCUE SERVICES

WHAT WE OFFER. • • • • • • • •

• • • • • • • •

Safety Training Rescue Teams and Support Confined Space Support Supplied Air Stand-by Medical Stand-by Personnel Respiratory Compliance Medical Clearance Substance Abuse Screening

Blood Serum Analysis Safety Consulting and Support Safety Professional Staffing Safety Equipment Support, Repair, Sales & Rental Personal Protective Equipment Engineered Fall Protection Solutions & Equipment Supplied Air Systems Industrial Hygiene Services

VISIT MED-TEXSERVICES.COM/OUR-SERVICES TO SEE A COMPLETE LIST!

ABOUT US. Med-Tex Services, Inc. has been providing safety and health services since 1985. For over 30 years, Med-Tex Services has successfully addressed the day-to-day needs of contractors and the facilities they support.

Med-Tex Services is a highly dependable source of fully trained and certified professionals who can provide a

“MED-TEX SERVICES IS RESPONSIVE TO MY NEEDS DAY OR NIGHT, WHETHER IT IS A TRAINING MATTER OR NEED FOR SAFETY EQUIPMENT”

wide range of support services 24 hrs a day, 7 days a week.Med-Tex Services is committed to maintaining a safe work environment for all workers by delivering training, dependable equipment, and reliable response to challenges faced on our job sites.

855-563-3839 INFO@MED-TEXSERVICES.COM MED-TEXSERVICES.COM ISSUE 1 | 2018 31

CULTIVATING

A CULTURE OF SAFETY

32 CONSTRUCTION TODAY

E Y

by Frank Durso, Director of Safety Services, GBCA In today’s competitive construction market, we need leaders that build sustainable cultures where safety and health are woven seamlessly into the fabric of the organization alongside efficiency, quality, and productivity. It’s no secret that leaders create culture, culture shapes attitudes and behaviors, and attitudes and behaviors influence outcomes.

Each year accidents on the worksite pull from contractors’ bottom line, the direct cost of accidents is found in insurance premiums, deductibles and direct payments. The measure of your organization’s safety culture is partially made by these dynamics and a sound safety culture fights these expenditures.

Safety has become an integral part of the construction industry and has been evolving into a resource for competitive organizations to become more efficient while simultaneously becoming a costreducing tool.

Safety cultures are driven by their leaders, and great cultures are driven by great leaders; to that end, this year, GBCA will present a threepart series exploring the critical importance of sound leadership in construction safety culture and its impact on workers’ well-being and health. The series will be title “The Culture of Safety,” and will highlight three key components that are integral in cultivating a safe and healthy jobsite and workplace: Leadership, Communication Skills, and Team Building.

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Make worker safety and health a core organizational value.

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re fully committed to eliminating hazards, protecting workers, and A continuously improving workplace safety and health.

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rovide sufficient resources to implement and maintain the safety P and health program.

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isibly demonstrate and communicate their safety and health comV mitment to workers and others.

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Set an example through their own actions.

ACTION ITEM 1: Communicate your commitment to a safety and health program A clear, written policy helps you communicate that safety and health is a primary organizational value — as important as productivity, profitability, product or service quality, and customer satisfaction.

Leadership methodologies and insights were studied at our first event, held on March 23. The room was packed full of safety leaders who were given an opportunity to discuss and dissect their current leadership qualities and explore new avenues for their organizations’ continued success.

Our next event will study effective communication skills and practices for successful leaders. Successful leaders get results, and results come from good communication: Not all approaches work in all situations. Successfully communicating an idea or thought process is a skill that can be honed, in this installment we will explore ways and means of communicating with positive results.

Join us in October for the third installment of this series where we explore effective team building skills and the value of a strong team manager. Teams give an organization a sense of ownership and pride.

From underdog to top dog, a team can take an organization to new heights.

As always, representatives from our Regional OSHA office will be on hand to answer relative questions and update us on current rulings and findings.

Below is a management plan from the OSHA website, we couple this with the GBCA “Culture of Safety” series as the beginning of a sound safety leadership plan.

Management provides the leadership, vision, and resources needed to implement an effective safety and health program. Management leadership means that business owners, managers, and supervisors: ISSUE 1 | 2018 33

How to accomplish it Establish a written policy signed by top management describing the organization’s commitment to safety and health and pledging to establish and maintain a safety and health program for all workers. n

ommunicate the policy to all workers and, at appropriate times C and places, to relevant parties, including:

• Contractors, subcontractors, staffing agencies, and temporary workers at your worksite(s) • Suppliers and vendors • Other businesses in a multi-tenant building • Visitors • Customers n

einforce management commitment by considering safety and R health in all business decisions, including contractor and vendor selection, purchasing, and facility design and modification.

n

e visible in operations and set an example by following the same B safety procedures you expect workers to follow. Begin work meetings with a discussion or review of safety and health indicators and any outstanding safety items on a “to do” list.

ACTION ITEM 2: Define program goals By establishing specific goals and objectives, management sets expectations for managers, supervisors, and workers and for the program overall. The goals and objectives should focus on specific actions that will improve workplace safety and health.

How to accomplish it n

n

stablish realistic, measurable goals for improving safety and health.

E Goals emphasizing injury and illness prevention should be included rather than focusing on injury and illness rates. evelop plans to achieve the goals by assigning tasks and responD sibilities to particular people, setting timeframes, and determining resource needs.

Note: Resource needs will vary depending on your organization’s size, complexity, hazard types, and program maturity and development.

Resource needs may include: capital equipment and supplies; staff time; training; access to information and tools (e.g., vendor information, Safety Data Sheets, injury/illness data, checklists, online databases); and access to safety and health experts, including OSHA’s free and confidential On-site Consultation Program.

ACTION ITEM 4: Expect performance Management leads the program effort by establishing roles and responsibilities and providing an open, positive environment that encourages communication about safety and health.

How to accomplish it n

I dentify a front line person or persons to lead the safety program effort, make plans, coordinate activities, and track progress.

Define and regularly communicate responsibilities and authorities for implementing and maintaining the program and hold people accountable for performance.

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rovide positive recognition for meeting or exceeding safety and P health goals aimed at preventing injury and illness (e.g., reporting close calls/near misses, attending training, conducting inspections).

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stablish ways for management and all workers to communicate E freely and often about safety and health issues without fear of retaliation.

ACTION ITEM 3: Allocate resources Management provides the resources needed to implement the safety and health program, pursue program goals, and address program shortcomings when they are identified.

How to accomplish it n

stimate the resources needed to establish and implement the E program.

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llow time in workers’ schedules for them to fully participate in the A program.

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I ntegrate safety and health into planning and budgeting processes and align budgets with program needs.

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rovide and direct resources to operate and maintain the program, P meet safety and health commitments, and pursue program goals.

34 CONSTRUCTION TODAY

Note: Maintaining a positive and encouraging tone is important.

Successful programs reward, rather than discipline, workers who identify problems or concerns, much like successful quality programs.

Disciplinary measures should be reserved for situations in which an individual manager or worker is uncooperative or becomes an impediment to progress (OSHA, 2018). n

It’s about lives.

Safety is not a priority – because priorities change. Safety is a core value. Every construction site has its own unique safety and health hazards related to location, environment, and the type of work being performed. HazTek has managed worksite safety and health for many of the nation’s largest and most respected construction management firms and general contractors.

Our experts are skilled in recognizing potential worksite hazards and highly effective in planning and implementing proactive measures. Since every project is different in complexity, HazTek will match the right experience to your job, enabling you to manage costs while we manage health and safety. Selecting HazTek is the safest decision that you can make.

CORPORATE & PROJECT SAFETY MANAGEMENT OSHA TRAINING | SAFETY CONSULTING haztekinc.com | 888-842-9835 | info@haztekinc.com ISSUE 1 | 2018 35

BUILDING A LEGACY

36 CONSTRUCTION TODAY

THREE GBCA MEMBERS CELEBRATE CENTENNIAL ANNIVERSARIES While the roots of the construction industry in Philadelphia extend as far back as the colonial and revolutionary era, the early 20th century was a time of bustling construction activity in our region. 1918 was a year of particular significance, as three well-known, highly respected GBCA member companies and construction firms — James J. Clearkin, Inc., P. Agnes, and TN Ward Company — were established that year.

Changing Times, Lasting Values

Establishing a Solid Reputation

“Celebrating 100 years in business is milestone that is a tremendous source of pride for our employees, our business partners, and particularly for me, the third owner of this great company,” says David E. Panichi, chairman and CEO of TN Ward Company.

“While there are a variety of factors that have contributed to our longevity and continued success, the answer to me is simple: a long history of hiring superior employees who are true experts in their field, our commitment to top-quality craftsmanship and our recognized reputation for providing exemplary client service.

P. Agnes can trace its start back to residential building, which was the initial focus when the company was established by Pellegrino Agnes, an Italian immigrant living in South Philadelphia. When his son, Louis Agnes, took the reins of the company, it began to move into the commercial space.

TN Ward Company’s story also primarily began with home building. Founder Frank H. Wilson was a skilled carpenter whose first project for the Oakmont Fire Company in Havertown, Pennsylvania was completed in 1919. The company soon became a popular home builder in the Main Line, building nearly 200 homes. Although many of these homes were built during the height of the Great Depression, they all sold and sold well.

During and after World War II, the company’s focus began to shift towards commercial projects, including schools, courthouses, churches, and retail stores.

One of the company’s early notable commercial projects was the conversion of Brigantine Beach Hotel in New Jersey to a hospital, where wounded soldiers were treated during the war. The campus was also a training location for the U.S. Coast Guard.

TN Ward Company wasn’t the only company whose initial projects solidified their reputation as a reliable and trusted builder in the region. James J. Clearkin, Inc., which was founded by James J. Clearkin, Sr., started as a small bricklaying company, but quickly became a sought-after general contracting firm in Philadelphia in the 20s, 30s, and 40s, with the Pennsylvania Railroad, Reading Railroad, and Sears Roebuck Co. among their impressive projects and clients at the time.

Over the next several decades, the construction industry would evolve at a rapid pace — in building innovation, techniques, and technology. Yet executives at all three companies today agree that a strong team and a continued commitment to their customers and the communities they serve continue to guide the company.

“TN Ward was built on a shared philosophy of core values that is instilled in every person who has ever worked for us — past, present, and future, and those values have translated into each project on which we have worked over the last century,” Panichi says. “Those values are honesty, integrity, and quality of work.

“Like my predecessors, Frank H. Wilson and T. Newton Ward Jr., I believe that reputation is everything, and a good reputation will build good relationships, and consequently a strong and successful company. This notion has guided all of the company’s decisions over the past 100 years and will continue to do so for the next 100 years,” he adds. “We are a company that has always embraced change and met challenges with gusto. It is this ability to reinvent ourselves again and again and to respond to the times that has and will continue to allow us to stay at the forefront of our industry.”

Generations of Excellence For P. Agnes and James J. Clearkin, Inc., the anniversaries have special meaning not only for their businesses, but for their families as

Photos courtesy of TN Ward Company and P. Agnes, Inc. Photo credits (from top left): Courtesy of Special Collections Research Center, Temple University Libraries, Philadelphia, PA; © TN Ward Company; Courtesy of The Lower Merion Historical Society; © TN Ward Company; Courtesy of Haverford Township Historical Society; Courtesy of P. Agnes, Inc.; Courtesy of P. Agnes, Inc.; Courtesy of Radnor Property Group LLC; © Jeffrey Totaro, 2016.

well. The companies have remained under the family’s ownership since those very first projects.

Joseph P. Clearkin, executive vice president and chief estimator for the Clearkin company, is the grandson of James (Jim), Sr., one of four grandsons in the business today. In true boots to suits fashion, he started out working in the office yard and gradually moved up the ranks.

“It is an honor to be able to carry on in my grandfather’s and my dad’s, Jim Jr.’s, footsteps,” he says. “Our attention to detail remains the same — and the personal touch when working with James J. Clearkin, Inc. You know that you will always be dealing with a Clearkin in every capacity.”

Pat Pasquariello, CEO, P. Agnes, grandson of Pellegrino Agnes, echoes Clearkin’s sentiment of family pride. “We are proud to be celebrating this exciting milestone with our family’s fourth generation — and all of our employees, clients, and partners,” he says.

“This achievement is a testament to all of the individuals that have been a part of our team as we continue to maintain our senior position in the Philadelphia construction market.

“We feel our continued success is due to an unceasing devotion to the core values established by my grandfather 100 years ago, as well as to a commitment of utilizing the latest advances to help our clients meet their goals,” Pasquariello adds. “From being an industry leader in the incorporation of technology in both the field and office, to being the pacesetter in the Philadelphia market over a decade ago by adapting the LEAN process to the construction of all of our projects, we continue to evolve in an ever-changing industry as we look forward to exceeding our clients’ goals for the next 100 years.” n

Is your company or an executive at your company celebrating a special milestone or anniversary? We’d like to feature you in an upcoming edition of Construction Today! Contact Lauren Tosti at ltosti@gbca.com.

ISSUE 1 | 2018 37

BUILDING UPDATE

MUSEUM OF THE AMERICAN REVOLUTION

R p s s C t v a w

T t b d t a w m g s T b i s a b w t i

Q m b c e a a r a b 38 CONSTRUCTION TODAY

Halkin Mason Photograpy

ograpy

Peter Aaron/OTTO

Halkin Mason Photograpy

Reopened in April 2017, the Museum of the American Revolution project consisted of the demolition of an existing building, the construction of a new four-story, 120,000 square-foot, steel-framed structure, and the fit-out of 20,000 square feet of exhibit space. Old City Philadelphia is rich in the history of the founding of our country, and the Museum of the American Revolution is situated among various buildings of historical and architectural significance. Careful attention was given to ensure the integrity of the building’s history were maintained throughout the construction process.

The first challenge of the project was the demolition of the bell tower that was part of the existing building. The construction of the tower was brick-clad, 8-foot tall reinforced concrete beams. INTECH and the demolition contractor had to problem solve together to find a better, more efficient way to demolish the tower. Through teamwork and creative thinking, it was determined that concrete wire saws with motors mounted at grade level could cut through the enormous beams, and a 500T crane could then safely lower the beams to grade. The second major challenge of the project was to remove the space frame truss that spanned the length of the existing building.

Through collaboration with the client and the previous owner of the building, photos were obtained which confirmed how the truss was initially erected. These photos showed how four cranes were used simultaneously to raise the entire roof structure that was previously assembled at grade. Based on this photo, it was determined that the best way to remove the roof structure was in the same fashion that it was erected. Four cranes were brought in, and the entire roof structure was cut loose and lowered to the ground, safely and efficiently, in one continuous operation.

Quality and craftsmanship began during the detailing stage and were maintained through final installation. Two examples — the custombuilt elliptical stair, and the extremely complex stone-inlaid precast concrete wall panels — are indicative of how the work met and exceeded extremely high quality expectations. Steel erection plans and designed locations of slab edges had to be maintained in strict accordance with approved shop drawings, to ensure that the pre-fabricated stair fit properly and precisely. The stair fabricator actually assembled the stair in the shop, to ensure proper erected size, and then broke it down into four pieces for shipment to site and final erection.

Peter Aaron/OTTO

The west elevation of the building consists of three identical bays of carved, concave limestone that rises vertically and comes together as an arch at the top. The attention to detail required was so critical when fabricating these stones, as well as building the formwork and placing the stones on the forms, that even the slightest misstep would require that new stones be quarried and fabricated. Each of the six panels required for these three identical elements were fabricated precisely the first time. n

ON THE PROJECT General Contractor: INTECH Construction Architect: Robert A. M. Stern Architects Subcontractors/Suppliers: Philadelphia D&M | Cooper Plastering | Yorie Terrazzo and Tile | Central Metals | DM Sabia | Universal Concrete | Belfi Bros. | Northern Millwork | Samuel Grossi & Sons | Herman Goldner | D’Angelo Brothers | Preferred Fire Protection Structural Engineer: Keast & Hood Civil Engineer: Pennoni MEP Engineer: Altieri Sebor Wieber

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ISSUE 1 | 2018 39

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www.clearkin.com | 215-663-0700 ISSUE 1 | 2018 41

LASER SCANNING TECHNOLOGY HELPS ADDRESS FLOOR FLATNESS CHALLENGES

by Sam Arabia, Director of Engineering and BIM Services, Torcon, Inc. A core principle of the USGBC Green Building movement is to reuse existing structures allowing builders to close a loop in material management. A substantial part of responsible green building practices is balancing the challenges of renovation work with the client’s economic and schedule objectives.

The modern design concepts embraced by architectural firms are airy, bright, and open. Today we see expansive glass wall partitions, doors and office fronts. For these glass wall features to be constructible, the floor slab must be flat. Unfortunately, in most renovation scenarios, settling has occurred, and the floors are rough and pitted from years of flooring changes, adhesive removal and occasionally, water damage.

Like all construction management firms, Torcon routinely faces the need to cost-effectively develop accurate flooring information in existing and particularly older buildings. One critical challenge is determining the flatness of an existing floor slab. In fact, more often than not, estimates to remedy floor flatness issues are simply educated guesses that include a significant margin for inaccuracy.

42 CONSTRUCTION TODAY

There is also an important distinction between ‘flatness’ and ‘level.’

For a glass wall to perform well the floor does not need to be level, but it does need to be flat.

The typical process that any estimator goes through when evaluating cost to cover the ‘leveling’ of a floor is to generate the overall square footage and then apply a multiplier cover to bring all the low spots up to the highest point in the floor. The result would be a flat surface.

The essential problem with this type of budgeting is it assumes the worst-case condition and most costly repair.

The industry has traditionally issued contracts for floor leveling on a time and material (T&M) basis simply because an accurate estimate, and therefore hard cost, is too difficult to quantify. Torcon has found this process to be extremely inefficient and inconsistent with the Green Building principles of Material Management. Not only is budgeting difficult, but addressing the floor flatness issue this way is excessive from a cost perspective. This legacy process, one that most contractors still use today, requires enough material to float

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the legacy workflow, a subcontractor would use traditional surveyor tools, which would likely triple the number of man-hours for this project. The cost to produce a laser scan is minimal compared to the cost of remediating flatness in a floor using a traditional method. A laser scan for this project’s floor flatness study cost $16,000 reflecting an instant ROI of more than 4,800 percent.

This innovative use of technology has achieved three primary objectives. It effectively solves the challenge of generating reliable information with which to generate accurate estimates for floor flatness, which is critical to achieving today’s interior design. The technology allows a streamlined workflow, reducing cost by strategically removing high points rather than raising the entire floor slab to create a flat environment. Finally, this innovative use of technology enhances a commitment to green building. Fewer man-hours and materials are used to achieve the same results and less energy is required to produce and install materials used throughout the floor remediation process. n large portions of the floor to the highest point, with no reliable methods of evaluating less costly methods of achieving flat floors.

The ability to accurately evaluate both the high and low points in a broader context could achieve two goals for customers and their project teams. First, we could determine the optimal balance of added material and targeted removal necessary to achieve the tolerances required for flatness. And second, we knew this enhanced analysis would enable us to utilize significantly less material. Savings result from the recognition that if a floor has high points that represent a relatively small portion of the floor, it is more cost-effective and efficient to chip away the high points and thus utilize less material to achieve flatness.

SINCE 1900.

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But quantifying the most economical approach to chipping vs. infill was difficult if not impossible without a reliable method. Using laser scanning technology has proven to be successful in solving the challenge of floor flatness. A laser scanner sends millions of points of light out which return to the scanner creating a point cloud representing an as-built environment. Laser scans are typically used to document interior spaces, including walls, ceilings, ductwork and pipe. Torcon has been able to use our high-density laser scanner to create an “interior topographical map” of a floor slab, giving us the exact high and low points, relative to a grid, and accurate to within 1/8”. The resulting data was predictably accurate and remarkably useful.

On a recent project, Torcon completed the renovation and fit-out of a 350,000 square foot office complex (approximately $40,000,000 in construction value). We tested this process with a parallel workflow. The legacy estimate of $1,784,000 was generated for budgeting purposes on this fast-track project. Data generated by our floor flatness laser scan showed areas that could be more economically remediated by removing high points and utilizing less fill. This approach saved money for the customer while promoting Green Building practices of utilizing less material. The final cost of achieving the specified tolerance for flatness was $1,009,640 which represented a cost savings to the project of $774,360. There was an additional environment saving in materials used and energy required to produce and install those materials.

The man-hours that must be expended to complete a laser scan floor flatness study are also significantly less than the traditional legacy workflow. A laser scan can cover approximately 50,000 square feet per day. On this project, it took 6.5 working days to collect the data. In

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WHERE ARE THE WOMEN IN CONSTRUCTION?

by Lisa Minniti-Soska, Partner, Real Estate Group, Mazars USA Recently, while out to dinner with friends, I mentioned that I was involved in an initiative with the goal of enhancing the development and retention of women accounting leaders in our firm. I asked one of my friends, a glazier, how many women he works with. He responded that there were none. I turned to my husband, who also works in the construction industry, and asked him how many women he works with in the field. He, too, responded none.

According to the Department of Labor’s (DOL) Bureau of Labor Statistics, women represent 46.8 percent of the workforce. So

where are all the women in construction and how does the lack of women affect the future of the industry? The same DOL statistics show that a mere 9.1 percent of women in the workforce participated in construction in 2016 and the majority of these women worked in administrative roles. While the number of women involved in other industries continues to increase, the same growth is not seen in construction.

an early age, girls learn to perceive construction as a male-only career choice. Young girls typically see their fathers, uncles, brothers or other men participate as construction workers, causing them to assume there is no place from them. However, the increasing number of women in other male-dominated careers, such as firefighters and police officers, tells us that this is not the only obstacle that needs to be addressed.

Hurdles from Childhood

Those that are interested in entering the industry can often become deterred by the unfortunate shortage of female role models. Even the women who have navigated

There are a number of barriers to women interested in entering the field. Starting from

This article was originally published by the national Construction Today magazine on August 16, 2017.

44 CONSTRUCTION TODAY

through previous obstacles often abandon their course because of gender bias and fear of being scorned or discriminated against by colleagues or others in the field.

Particularly in fields requiring physical work, gender bias can create a workplace culture that is dismissive of women’s abilities, making it difficult for them to break into the field.

Women who do manage to get hired for construction jobs are often the subject of gender stereotypes, resulting in employers making assumptions about their caregiving responsibilities or physical capabilities.

Unfortunately, gender quotas are falling short of solving the problem. Sometimes women are put to work on a job solely to show a company is meeting gender goals.

However, once the project is completed, women are often fired regardless of their performance or skills. Research shows that

women in construction are less likely to have access to mentors who act as career promoters by signaling the woman’s potential and providing the support needed to ensure success.

backgrounds and experiences. As a result of these changing trends and baby boomer retirement, the construction industry needs to rethink its strategies to attract, recruit and retain female workers.

Why Do We Need Women in Construction?

The lack of women in construction can be solved, but not overnight. One of the best ways of attracting more women to the industry is to make girls today aware of the career opportunities in construction, including exposure to female role models.

Reinforcing their exposure to the industry throughout high school and enlisting the help of high school career counselors to promote careers in construction will also help. Getting more women into the industry, however, is just the first step. Only longterm work to dismantle gender biases and the development of a professional support system of formal and informal mentors will ensure they stay and flourish. n

Ignoring the lack of women in construction is shortsighted. The construction industry is experiencing a fundamental shift, as a looming labor shortage is creating fierce competition for workers. Economists are also predicting significant growth in construction spending, causing construction companies to face problems with the lack of available resources.

In addition, technology is transforming the way projects are designed and diversity is increasingly becoming an important focus within the industry, in an attempt to bring in new points of view and ways of problem solving by expanding the range of workers’

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As a respected multi-disciplined exterior envelope contractor, we have run into the same problem over and over for the past decade and are looking to resolve this serious problem in the installation of rain screen systems. There is a huge gap/loophole that exists when installing a multi-layered dry-joint rain screen systems. Rainscreens are here to stay and architects are designing buildings across the country to display the full palette of exterior facades that make everyone stop and stare when walking past.

The issue being discussed is quite simple — nevertheless, quite complex to fix. When a leak occurs in a rain screen design, before or after the project’s completion, the owner/client are faced with a costly dilemma.

The problem usually begins when there are different subcontractors for the Air & Vapor Barrier System and the Exterior Façade System.

The opposing subcontractors will take an aggressive position that the other is the reason for the leak. They both will have valid arguments even without knowing the facts of the situation because they have built-in justifications. The reasoning is straightforward as the AVB installer defense will sound like this: “My work was watertight before the exterior façade installer drilled 50,000 +/- holes into my system so you can’t blame me!” The exterior façade installer has a similar defense: “My system is a dry-seal which is designed to let water into my system which means that we have no watertight integrity standards. Call the AVB installer.” Everyone at this point is looking for a material manufacturer to fix the problem but that will not happen.

BUILDING AN ENVELOPE WARRANTY

by Cory Robbins, Business Development, EDA Contractors, Inc.

Every AVB manufacturer specifically does not warrant workmanship within their systems as they will ONLY warrant material failures. (Material failure is probably the least likely event to occur within these systems. The failure rate is less than 1 percent.) Manufacturers of AVB will replace the material (the least expensive part of the system) and sometimes pay for the labor to install the new membrane. The labor to remove the old material, the removal of the exterior façade components, and the means and methods of installation are NOT INCLUDED, which are the most expensive components of the repair.

The owner of the building has one option at this point.

Owners will be required to organize and participate in meetings with the architect, general contractor, owner’s representative, exterior façade subcontractor, and air and vapor subcontractor. This process will take more than one meeting and may take several, while the building continues to leak. If a resolution cannot be negotiated then the project will follow the worst case scenario and be part of the legal system which will not have the problem resolved for many years.

Sadly, this is standard practice in our industry.

There is a solution to this problem but it must be a proactive approach to your rain screen façade. The solution must be incorporated into the specifications by the architect designing the project before the project is bid. The concept requires that the AVB specifications are the responsibility of the exterior façade installer/subcontractor. This will allow the project to be able to provide a 10-year workmanship warranty for the water integrity of the wall system by the exterior façade contractor. Since the air and vapor barrier is the weather barrier, this solution forces the exterior façade installer to be responsible for any leaks within the system including the Air & Vapor Barrier System.

The exterior wall subcontractor is in charge of the wall system which

46 CONSTRUCTION TODAY

forces them to be responsible for the integrity of the air barrier system whether they self-install the work or subcontract it to another subcontractor. The specification language covers the owner and the architect alike by imposing coordination and detailed shop drawings to accommodate both disciplines. This creates a united team that will provide a leak-free rainscreen wall system for the required 10 years.

This proactive solution can be added as an “Add Alternate” to give the bidding exterior façade installers the opportunity to put a price tag on the warranty. The owner can then decide to accept this alternate or accept the responsibility for the façade.

This approach is not new and was preceded by the curtainwall and roofing industry. Many connected disciplines are included in these industries to allow for complete coverage and associated warranties. n

he curtainwall industry is responsible for all caulking within their T system. The decision to self-install the caulking or subcontract to another vendor is solely chosen by the curtainwall installer. The curtainwall industry has accepted that this must be within their scope and responsibility.

n

The roofing industry follows the same ideology. The roofing industry requires all Copings, Gravel Stops, Pitch Pockets, Counterflashing, Welded vent covers, and many other sheet metal items to be provided by the roofing subcontractor to maintain the specified warranty coverage.

Only the owner can decide the value of a leak-free façade for 10 years. As we all know, water/moisture infiltration is the number one enemy of ANY building and this proactive approach is the protection.

Below is the warranty language being used by architects in the Mid-Atlantic Region. Each and every architect has the ability to incorporate the below language or adjust their specifications to allow for the same coverage:

Special Building Enclosure Warranty The installer of the exterior panels shall provide a (10) year warranty covering all leaks that directly result from the defective material or defective workmanship supplied or performed by installer for both the Air & Vapor Barrier and the exterior panels Should the exterior walls develop any such leaks during the Warranty Period, the installer’s sole obligation shall be to furnish necessary materials and labor to repair the affected area and return it to a watertight condition.

All removal of overburden and access to area is to be included in warranty. Warranty must be provided by a single source entity which includes the Waterproofing Membrane and Air & Vapor Barrier and Exterior Rainscreen Panels.

EDA Contractors, Inc., specializes on the exterior envelope of all commercial, institutional, and industrial buildings. To learn more visit edacontractors.com. n

ISSUE 1 | 2018 47

HEALTHCARE SAVINGS

48 CONSTRUCTION TODAY

F

FOR BOTH EMPLOYEE AND EMPLOYER

by John McDermott, CFP, Financial Advisor, Raymond James & Associates, Inc. As employers both large and small continue to adjust to increasing healthcare costs for their employees, the High-Deductible Health Plan (HDHP) is becoming a very enticing offer. I thought a good topic to explore is how this type of plan can be a benefit for both employee and employer.

What is an HDHP? An HDHP is a health insurance policy with lower premiums and a higher deductible than the traditional PPO or HMO policies.

The insured individual is responsible for the first portion of their medical expenses in the form of a deductible before the insurance company begins to pay some or all of the remaining covered health expenses for the policy year. The IRS states an HDHP deductible should be a minimum of $1,350 for an individual and $2,700 for family coverage. Once the deductible has been met for the plan year, a co-insurance period typically, but not always, takes hold. During co-insurance, both the insured and insurer are responsible for a portion of each dollar of medical expense paid. A ratio often seen in plans is 80/20, where the insurance company will pay $0.80 and the insured $0.20 for each dollar of expense incurred. The IRS also places an out-of-pocket maximum on HDHPs of $6,650/$13,300 for individual/ family coverage in 2018. These amounts are adjusted accordingly based on an annual cost-of-living change.

How to Save as an Employee If your health insurance plan meets the dollar requirements established by the IRS to be an HDHP, and you are not enrolled in Medicare or other health coverage, nor claimed as a dependent on someone else’s tax return, you have the ability to possibly save on your taxes. This is done through a Health Savings Account (HSA).

The basic concept of an HSA is an account to be used for medical and health related expenses while providing tax favored treatment. Contributions made to an HSA are either tax-deductible or excluded from income depending how the deposit is made.

Withdraws from HSAs for qualified medical expenses (as defined by the IRS) are tax-free.

If your account has the ability to invest, those earnings are tax-deferred and eventually taxfree if used for qualified medical expenses.

All non-qualified withdraws are treated as ordinary income on your tax return and carry a 20 percent penalty if made before age 65.

imizing their HSA contributions* each year and attempting to pay for medical expenses with after-tax funds, if possible. You will be thankful down the road when your healthcare costs are paid for from investment earnings within your tax favored HSA.

Many individuals get sticker shock when seeing the HDHP deductible and out-of-pocket maximums. Fully understanding the operation and taxation of HSAs can put these fears of drowning in medical bills to rest. Imagine a family paying $550/month after taxes for a PPO health insurance plan switching to an HDHP. The new monthly premium under the HDHP is $350. If your employer makes your elected HSA contributions directly to the account, it can be tax-deferred for federal and state income tax and tax-free with regard to Social Security and Medicare. We will assume tax rates of 22% for federal, 7.65% for Social Security and Medicare, and 3.07% for PA state income tax for this example (we will not consider local tax today). This is a total savings of 32.72% for each dollar a PA resident contributes to an HSA. The $200 after-tax monthly savings ($318 pre-tax) can be deposited in an HSA to pay future medical expenses. You now have $3,816 ($318x12) to pay a potential deductible of $2,700 discussed earlier.

This type of health insurance plan can offer savings to employers in two main ways. The most obvious, and reason most employers make the switch, is a lower premium cost.

The HDHP comes with a lower price tag because it eliminates some of the unnecessary healthcare visits. When insurers re-price plans on an annual basis, they look back over the past year and determine how much was paid in claims for employees of a particular business or group. If your employees are running to the doctor’s office every time they have a sniffle, you can expect premiums to increase. With the employee now having a larger cost-sharing for medical care, they may think twice about a non-necessary visit to the doctor or seek a lower-cost service such as a virtual doctor visit.

You are probably thinking it is a breakeven event for you at this point and a cost savings for your employer only. The real value of these accounts comes in a year or two when you have been depositing more than you withdraw, either due to lower than expected medical expenses or paying out of another account for those expenses. Unlike an FSA, your HSA balance can be carried forward from one year to another and from one employer to another. You also have the ability to invest your account balance similarly to a 401(k). After a few years of consistent deposits and investment growth, the account will start to self-sustain any annual deductibles or out-of-pocket costs associated with your healthcare, and therein lies the value. I often recommend to my clients max-

How to Save as an Employer

The second way to save using an HDHP is by creating a Cafeteria Plan. A Cafeteria Plan is a separate written plan following the Internal Revenue Code guidelines that allows participants to receive benefits on a pre-tax basis. Employees make salary reduction contributions to pay for their benefits and because the contributions are not constructively received by the employee, they are not considered wages for federal income tax purposes. Therefore, they are not subject to FICA or FUTA and the employer does not owe taxes on those salary reductions.

Making the Transition The transition to an HDHP can take time and involve a learning curve. It requires looking at the current situation for both an employer and employee to decide whether this type of plan is a proper fit. It typically is more beneficial to the employer over the short-term, but both parties can save considerably on healthcare spending over the long-term, if the appropriate strategies are utilized. n

*Up to $3,450 for an individual and $6,900 for a family can be deposited in an HSA for 2018.

Views expressed are not necessarily those of Raymond James & Associates and are subject to change without notice. Information provided is general in nature, and is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Past performance is not indicative of future results. There is no assurance these trends will continue or that forecasts mentioned will occur. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors or Raymond James & Associates we are not qualified to render advice on tax or legal matters.

This article is provided by John McDermott, CFP®, a Financial Advisor with Raymond James & Associates, Inc. Member New York Stock Exchange/SIPC. He can be reached at 215-968-7163 and 4 Caufield Place, Suite 101, Newtown, PA 18940.

ISSUE 1 | 2018 49

WELCOME NEW MEMBERS!

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National Electrical Contractors Association See our ad on page 5.

James J. Clearkin, Inc. See our ad on page 41.

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Berlin Steel See our ad on page 43.

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standing strong.

Masonry buildings are among the most distinctive landmarks in Philadelphia’s history. Carrying on the legacy established by our Founding Fathers, the Employing Bricklayers Association of Delaware Valley has been the voice of masonry contractors since 1923. Through the Delaware Valley Masonry Institute, building contractors recognize why masonry continues to be the superior choice for construction projects.

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