BreakingGround November December 2025

THE MAGAZINE OF THE MASTER BUILDERS’ ASSOCIATION OF WESTERN PENNSYLVANIA

FAYETTE COUNTY MARKET UPDATE

NOV/DEC 2025

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2025

Contents PUBLISHER Master Builders’ Association of Western PA www.mbawpa.org MANAGING EDITOR Ben Atwood 412-922-3912 ben@mbawpa.com EDITOR Jeff Burd jburd@talltimbergroup.com PRODUCTION Carson Publishing, Inc. Kevin J. Gordon ART DIRECTOR Carson Publishing, Inc. GRAPHIC DESIGN Blink Advertising blinkadvertising.com CONTRIBUTING PHOTOGRAPHY Archie Carpenter Photography Roy Engelbrecht Photography Fayette County Chamber of Commerce March of Dimes Mascaro Construction, L.P. Master Builders’ Association NAIOP Pittsburgh Amy Pischke Photography Shannon Construction West Virginia University Medicine SPONSORSHIP DIRECTOR Mary Chuderewicz mchuderewicz@mbawpa.org MORE INFORMATION: BreakingGroundTM is published by the Master Builders’ Association of Western Pennsylvania, 412-922-3912 or www.mbawpa.org Archive copies of BreakingGroundTM can be viewed at www.mbawpa.org No part of this magazine may be reproduced without written permission by the Publisher.

All rights reserved.

On the cover: Fallingwater by architect Frank Lloyd Wright, photo by Gerald Zaffuts

05

EDITOR’S NOTE

07 REGIONAL MARKET UPDATE

49

MANAGEMENT PERSPECTIVE That’s Not What My Contract Says!

53

BEST PRACTICE What’s On Your Noggin? The Construction Industry’s Move from Hard Hats to Helmets INDUSTRY & COMMUNITY NEWS

13

NATIONAL MARKET UPDATE

19

WHAT’S IT COST?

20

FEATURE Fayette County Update

55

33

PROJECT PROFILE Live Well Apartments

63 AWARDS & CONTRACTS

40

LEGAL PERSPECTIVE Construction Industry Alert: Potential Risks Related to Portland Limestone Cement

43

FINANCIAL PERSPECTIVE Cut Costs, Gain Expertise: Why Construction Companies are Turning to Outsourced Accounting

65

FACES & NEW PLACES

69 CLOSING OUT Fayette County Commissioner Scott Dunn

This information is carefully gathered and compiled in such a manner as to ensure maximum accuracy. We cannot, and do not, guarantee either the correctness of all information furnished nor the complete absence of errors and omissions. Hence, responsibility for same neither can be, nor is, assumed.

BreakingGround November/December 2025

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PITTSBURGH, PA 15203

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EMPOWERING LIVES & COMMUNITIES SINCE

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2024

EDITOR’S NOTE

I

’m from a small town, or rather two small towns. I was raised in Lancaster, PA, which didn’t feel like a small town when I grew up there. My family moved to Lock Haven, PA, when I was 16 and my formative years were spent there. I guess that’s why I think of Lock Haven as home all these years later.

Fayette County is filled with small towns like Lock Haven, towns on rivers or nestled in the Allegheny Mountains that are beautiful, friendly places to live. Those towns are also places that the economy has passed by. The people who remain in those towns, the leaders in Fayette County, love their homes and are working hard to create jobs so their children don’t have to move away from home to make a living.

Moving away to make a living is my story. I don’t know if I would have returned home after graduating from college under any circumstances. My parents and I were happy when I moved out. My father did arrange an opportunity to sell airplanes for Piper Aircraft, which was based in Lock Haven, but I wasn’t interested in moving back after setting my sights on Pittsburgh. As it turned out, Piper pulled up stakes and abandoned its plant and offices in Lock Haven for Florida three years later. By 1985, most of the other manufacturing companies in Lock Haven closed their doors too. Lock Haven became a college town and now even that is in peril.

Part of me looks at what’s happening in small towns like Lock Haven (or Uniontown) and chalks it up to the natural cycle of economic life. The American west is full of towns where, to quote from The Outlaw Josey Wales, “The gold run out.

Then the silver run out. Then the people run out.” But my hometown is not a boom-and-bust, gold rush town. It’s a Norman Rockwell, Main Street America kind of town. I can’t fathom letting Lock Haven wither and die, even though I left there 46 years ago. If I lived there now, I’d be fighting to revitalize it. I’m just not sure how that would happen.

The folks in Fayette County are working to revitalize their economy. The towns there are not dying but they are not participating in some of the economic growth that has occurred in the neighboring counties. After numerous strategic plans failed to move the needle on growth, the county’s leaders are taking a different approach, stepping back to find out what the market thinks the best uses for its land and resources are before pursuing opportunities.

tight that almost any new construction would be snatched up quickly. Its largest employers are healthy and in a position to invest in their future.

There are also challenges. Construction costs have risen to the point that it is difficult to build places to live that the average working person in Fayette County can afford. Penn State is closing its Commonwealth Campus in Uniontown.

The state and federal governments have fewer resources to dole out to small towns and counties with fewer voters.

Regional economic development agencies tend to lose focus the further you get from the Pittsburgh city limits. Most of the solutions that result from Fayette County’s economic visioning study (see page 18) will have to be home grown.

Even that will be a challenge, since many of the people who live in slower-paced, less dynamic places do so because they are slower-paced and less dynamic.

So, Fayette County will need help executing its vision. Some of that will come from government resources but some will come from regional resources. Pittsburgh is blessed with abundant philanthropic organizations. There is a history of public-private solutions to problems, although the current focus of many of the vehicles for public-private partnership seems to be away from our more rural neighbors. When you spend time with Fayette County’s leaders and see how exhausting their work is, it’s easy to understand their frustration when one more charitable foundation grants money to revitalize downtown Pittsburgh while many of the storefronts in Uniontown remain empty.

We can help our regional leaders remember that Uniontown is one of our neighborhoods too. Go see the attractions in Fayette County. If you are in a position to influence or communicate with a philanthropic organization, ask if Fayette County’s economic development is on its radar. If the good people of Fayette County decide that a gas-fired power plant or a solar farm is a good thing, stay out of their way. Be a neighbor. That’s the small-town way.

And there are opportunities in Fayette County. There is abundant natural gas beneath the ground in Fayette County.

There are abundant natural resources. There are employers there working in segments of the economy that are durable and in favor. The housing market in Fayette County is so

BreakingGround November/December 2025

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It’s a win-win for our region when labor and business are aligned.

At Pittsburgh Works Together, we cover the impact of labor and business on Western PA’s economic health.

Access research briefs, data insights and expert analysis at pghworks.com.

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REGIONAL MARKET UPDATE

BY BEN ATWOOD AND JEFF BURD

P

ittsburgh’s labor market softened steadily through the summer. The August unemployment rate clocked in at 4.7 percent, marking the fourth straight month in which that figure has climbed, and a growth of nearly a full percentage point since March of this year.

Civilian labor force declined from 1,245,100 in July to 1,237,400 in August, which is nearly 10,000 below the figures from August of 2024. Total non-farm employment declined for the third straight month, dropping to 1,218,900 by the end of the summer, its lowest point since April of this year.

Within the local sectors, manufacturing was at 87,000, up slightly from July and the highest point since September of 2024, but still down one percent year over year. Construction declined slightly from July to August and is 0.3 percent below last year’s figures. The region’s cornerstone education and healthcare services sector softened through the summer, dropping to 267,900 by the end of August, down about 4,000 jobs since the early spring. Despite this pullback, the Eds and Meds sector remain healthy, recording year-over-year growth of 5.1 percent.

The local office market continues its slow but steady devolution. CoStar’s data shows a market wide vacancy rate of 11.5 percent, the highest since the worst of the great recession, but still under the national average which is over 14 percent. The local vacancy rate has climbed by just 0.5 percent over the past twelve months, and net absorption is about 200,000 square feet in the red.

before 2020. Renewals have been a big part of the story, with nearly half of the 20 largest deals of 2025 involving tenants choosing to stay in place. One of the most significant was Google, renewing a long-term lease at Bakery Square.

Though the tech giant reduced their footprint by about 70,000 square feet, Carnegie Mellon filled in about 40,000 square feet in that same facility.

On the new-lease side, a few submarkets have posted positive levels of absorption. The Parkway West Corridor, Washington County, and Greater Downtown have seen the strongest levels of absorption, with the largest deal coming from Duquesne Light Company, which signed for a 15-year term at Nova Place on the North Shore.

Pittsburgh’s multifamily market remains on rock solid footing.

CoStar data shows that the vacancy rate hovers around 5.5 percent, a 50-basis point drop quarter over quarter. This is remarkably tight compared to peer markets across the Great Lakes region and is yet another indicator that new supply within the market can fill rapidly.

Taking a closer look at the region’s housing market reveals that Pittsburgh is experiencing a sharp drop in sales while simultaneously seeing an uptick in active listings. Data from the Federal Reserve shows that the number of active listings throughout the market has hit the highest levels since June of 2020, with over 5,100 homes currently on the market.

At the same time, Allegheny County sales records show that residential sales dropped precipitously in September of 2025, with just under 750 homes trading hands. This is coupled with a four-month downward trend in pricing, which is currently Allegheny County Home Sales and Average Sales Price averaging about $283,000.

Office leasing activity has kept at a steady pace but running slightly behind 2024 levels and still well below what was seen

Sales Count

Avg Sales Price

$400,000

1250

1000

750 $200,000 500

$100,000 250

0

Ja n

2 Fe 02 b 3 M 202 ar 3 2 A 02 pr 3 M 202 ay 3 2 Ju 02 n 3 2 Ju 023 l2 A 02 ug 3 Se 202 p 3 2 O 02 ct 3 2 N 02 ov 3 D 202 ec 3 2 Ja 02 n 3 2 Fe 02 b 4 M 202 ar 4 2 A 02 pr 4 M 202 ay 4 2 Ju 02 n 4 2 Ju 024 l2 A 02 ug 4 Se 202 p 4 2 O 02 ct 4 2 N 02 ov 4 D 202 ec 4 2 Ja 02 n 4 2 Fe 02 b 5 M 202 ar 5 2 A 02 pr 5 M 202 ay 5 2 Ju 02 n 5 2 Ju 025 l2 A 02 ug 5 Se 202 p 5 20 25

$0

Sale Count

Average Sale Price

$300,000

Permits for new homes increased by 4.4 percent, or 99 homes, year-over-year compared to the first nine months of 2024. Construction started on 2,336 single-family homes in the six-county metro area. Housing starts overall dropped more than 17 percent because of a decline in multi-family permits.

Through September, permits for new apartments totaled 1,588 units, a drop of 874 units from a year earlier. Despite a burgeoning pipeline of multifamily projects, it is expected that only another 560 units

The average sale price for Allegheny County single family homes continues to decline sharply, with September seeing a noticeable fall in total sales. Source: Western Pennsylvania Regional Data Center

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Homer City Redevelopment’s $10 billion power plant and data center campus at the former coal-fired power plant in Indiana County. Kiewitt, the project’s EPC contractor, has begun moving staff on site.

In Springdale, a Davidson Kempner-led group has presented its plans for a $750 million data center at the former Gen-On Cheswick power plant site.

Source: Pittsburgh Homebuilding Report

will get underway in the fourth quarter, which will result in a decrease in multi-family starts of nearly 1,000 units compared to a year ago. Demand for apartments remains solid, but higher construction costs and financing difficulties have slowed the progress on most proposed new developments.

Tracking construction permits in the city of Pittsburgh shows an uptick in total project value. Through the end of September, there have been a total of 279 commercial building and building and development applications over $100,000 approved, with a total project value around $723.9 million. If the year’s current trends hold through for the final quarter, there will be slightly fewer PLI permits issued, but total project value will easily eclipse 2024 levels.

Throughout the seven-county metropolitan Pittsburgh market, permits and contracting for nonresidential and commercial construction totaled $3.68 billion from January through September. That represents an increase of $320 million, or 8.7 percent, compared with the first three quarters of 2024. The increase has been driven again by major projects, particularly public and owner-occupied facilities. With the pace of bidding slowing as the fourth quarter began, activity for the full year should total between $4.5 and $4.8 billion.

Notable projects on the horizon include Nippon Steel’s latest investment in the Edgar Thomson plant in Braddock.

The firm, which recently acquired U.S. Steel, is preparing to submit an air construction permit for the Allegheny County Health Department for a new $100 million slag recycling facility at the site. Once approved, engineering plans will be finalized with construction expected to begin in 2026.

The project will allow the plant to recycle byproducts of the steelmaking process into materials like cement ingredients, cutting down on landfill waste and reducing air emissions while also generating additional revenue. This marks a significant step in modernizing one of the region’s historic mills, aligning with Nippon Steel’s broader strategy to upgrade U.S. Steel’s North American facilities.

Early-stage construction and contracting have begun on

8

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Walmart took a major step toward redeveloping the Monroeville Mall after filing a $7.5 million request through Pennsylvania’s Redevelopment Assistance Capital Program (RACP). The application outlines plans to demolish the existing 1.2 million square foot center and replace it with a modern mixed-use development.

Plans call for 780,000 square feet of new retail, restaurant, and entertainment space. The demolition is budgeted at $15,000,000 and their current schedule is to begin demolition work in April of 2027.

Several other RACP grant applications signaled interest in significant redevelopment projects. Commonwealth Development Partners applied for a $7 million grant to renovate the Grant Building. The $85 million proposal would upgrade the lower floors to create more competitive office space and convert the upper floors to residential. Next Tier Real Estate Investors is seeking $15.5 million to assist with a $71 million plan to renovate the former Westinghouse Electric headquarters in Monroeville for a single user. That project is rumored to also include a data center on site.

Point Park University also submitted an RACP request to expand into two existing Downtown buildings. The university is seeking $5.5 million to renovate the former YWCA headquarters on Wood Street. Their plan calls for a full interior overhaul to create new student housing, study areas, and community space. The university is also seeing $4 million to renovate 500 Smithfield Street, a historic former bank that has been largely vacant since the pandemic. Point Park envisions a three-phase redevelopment that would modernize the building and ultimately convert it into classrooms, studios, conference areas, and community programming facilities.

These efforts align with the school’s broader growth strategy, which aims to increase enrolment by 30 percent by 2030.

Despite growing enrollments at several regional colleges and universities – including University of Pittsburgh – there are fewer capital projects nearing construction. Pitt is in the process of revising its capital plan. Carnegie Mellon has been cutting staff in response to the cutback in federal research funding, which will likely chill capital spending in the short term. Investment in PA State System of Higher Education universities are frozen while the budget battle continues.

One source of optimism for higher education construction is the dramatic improvement in fundraising at some of the region’s small colleges, which bodes well for 2026-2028 capital spending.

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Downtown Pittsburgh Construction Permit Count and Value Count

Total Project Value 50

$200,000,000

40

30

$100,000,000

Permit Issue Count

Permit Dollar Value

$150,000,000

20

$50,000,000 10

$0

Jan, 2024

Feb, 2024

Mar, 2024

Apr, 2024

May, Jun, 2024 2024

Jul, 2024

Aug, 2024

Sep, 2024

Oct, 2024

Nov, 2024

Dec, 2024

Jan, 2025

Feb, 2025

Mar, 2025

Apr, 2025

May, Jun, 2025 2025

Jul, 2025

Aug, 2025

Sep, 2025

0

The number of permits issued by the cooled in September but is on track to match 2024 figures by end of year. Source: Western Pennsylvania Regional Data Center Pittsburgh Unemployment Rate 20%

15%

Unemployment Levels

While there have been no improvements in the funding mechanism – or the funding – for public education construction, there is an unprecedented uptick in major capital projects.

Seneca Valley School District took bids in early November for additions and alterations to its Intermediate School that were expected to cost in excess of $105 million. In the queue behind that project are the $130 million Hempfield High School additions and alterations, and a new Quaker Valley High School that is estimated to cost just under $100 million. North Allegheny School District and State College Area School District both have capital programs that include single projects in the $100 million range. On the other side of the state, in Lancaster County, a different Hempfield School District is proceeding with plans to more than double the size of its high school, a project that is expected to cost upwards of $190 million.

10%

Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 Jun 2022 Jul 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 Jul 2023 Aug 2023 Sep 2023 Oct 2023 Nov 2023 Dec 2023 Jan 2024 Feb 2024 Mar 2024 Apr 2024 May 2024 Jun 2024 Jul 2024 Aug 2024 Sep 2024 Oct 2024 Nov 2024 Dec 2024 Jan 2025 Feb 2025 Mar 2025 Apr 2025 May 2025 Jun 2025 Jul 2025 Aug 2025

These kinds of mega K-12 projects, including the $109 million new Bethel Park Elementary School that 5% started construction in early 2024, are the result of a dramatic jump in construction costs for schools and the 0% financial neglect of the state’s Department of Education for the past dozen years. For Source: Western Pennsylvania Regional Data Center, Pittsburgh Department of Permits, the growing and/or fiscally Licenses, and Inspections. strong school districts that require regular expansion the near-term future, the K-12 market will continue to offer and renovation to facilities, solutions were needed that primarily small projects, but the major project opportunities circumvented Pennsylvania’s inadequate PlanCon system. have ballooned to the point that they will attract larger PlanCon, which has been essentially defunct since 2012, was inadequately funded by the legislature prior to Governor Corbett’s moratorium. At the time, new school construction costs were roughly $225 per square foot. Today, those costs have doubled. By pushing capital funding down to the individual school districts, the legislature effectively created two tiers of school districts: those that could only afford to repair facility problems and those that could afford to fund construction that stayed ahead of facility problems. For

contractors that largely avoided K-12 bidding. Whether local school districts have public support for funding $100 million projects remains to be seen.

The region’s energy market is seeing an uptick in spending after nearly a decade of stagnation. In Smith Township, Washington County, MarkWest is expanding its Harmon Creek Gas Processing Plant. The third phase of the plant’s development, the current expansion adds 330 million

BreakingGround November/December 2025

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cubic feet per day of cryogenic processing. Along with the related processes, the project should cost between $400 million and $500 million.

Gas prices remain low, trading just above $3 per million BTUs, but the expansion suggests that MarkWest and its partners expect (or have agreements for) increased gas demand. This may be in anticipation of the planned growth in gas-fired power generation to provide electricity to the data centers proposed in southwestern PA. Because of the major construction projects in the region, Pittsburgh’s top line construction volume for 2025 is likely to exceed the $4.8 billion forecast at the beginning of the year; however, the number of opportunities has declined. This trend will continue into 2026, as another mega project is likely to get underway while the sectors that typically are the bread-and-butter of the market – healthcare, higher education, and public construction – see capital spending that is lower than normal. BG

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NATIONAL MARKET UPDATE

T

BY BEN ATWOOD

he federal government entered a shutdown on October 1st, after Congress failed to pass a new spending plan. In the short term, the impact is mainly felt in suspended services, delayed projects, and missed paychecks.

A brief shutdown, which is most likely, would have limited and reversible effects. A prolonged one could dampen confidence, disrupt local economies, and add to concerns about U.S. fiscal policy. Each week of the shutdown could shave a small fraction of growth in gross domestic product (GDP), as federal workers cut spending and businesses face delays in contracts, permits, or grants. Uncertainty also builds as key government data releases are postponed, complicating decisions for business and policy makers.

Numerous economic indices have been stalled or delayed at the time of this writing, but the latest data shows a continuing trend of a softening economy. August’s labor market report showed a continuation of the stall that defined the summer months. Total non-farm payrolls increased by just 22,000, marking the fourth consecutive month with minimal growth.

Unemployment ticked up modestly from 4.2 percent to 4.3 percent, its highest level since 2021.

The household survey also showed stable if lackluster numbers. The labor force participation rate was 62.3 percent, while the employment population ratio was unchanged at 59.6 percent. Both have fallen by 0.4 percent over the past year. Long-term unemployment remains elevated, with 1.9 million jobseekers out of work for more than 27 weeks, accounting for more than a quarter of the unemployed. The number of Americans outside the labor force who still want a job rose by 722,000 over the year to 6.4 million.

Industry trends underline the narrow base of job growth.

Healthcare added 31,000 positions, while social assistance

contributed another 16,000. Goods producing industries were also weak. Manufacturing shed 12,000 jobs in August, while wholesale trade employment declined by 12,000.

Federal government employment fell by another 15,000, extending a decline of nearly 100,000 jobs since January.

This figure could easily rise in the coming weeks as President Trump has threatened to use the shutdown to cut additional jobs and programs.

Historical revisions showed mixed movement. June’s estimate was revised down sharply, from a small gain of jobs to a net loss of 13,000, while July’s figures were revised upward by 79,000. Taken together, the two months are now reported as 21,000 jobs fewer than previously estimated, reinforcing the narrative of a cooling labor market.

The August Job Openings and Labor Turnover Survey (JOLTS) showed little movement in overall labor market dynamics.

Job openings held steady at 7.2 million, translating to a 4.3 percent openings rate. Hires also remained flat at 5.1 million, or 3.2 percent of employment, suggesting employers are showing caution in adding new workers, and opportunities for job seekers are no longer expanding.

Payroll processing firm ADP’s September payroll data backs this up, showing that private payrolls experienced the largest decline in over two years. The firm’s data shows that private employers shed around 32,000 jobs during the month, which flies in the face of Dow Jones economists, who had expected a gain of 45,000. Additionally, ADP revised its August payrolls to a loss of 3,000 jobs from an initially reported increase of 54,000.

ADP’s data revealed that job losses were spread through multiple sectors, with losses in leisure and hospitality (a crucial sector for consumer demand) around 19,000. The overall decline was mainly due to smaller businesses, which

Rising unemployment will be a main concern in 2026. A spike in unemployment has preceded all recessions since 1948.

BreakingGround November/December 2025

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These negative numbers do not necessarily indicate job losses, but a reduction in hiring. More likely, 40,000 positions that were open in small businesses were not filled.

Smaller businesses more susceptible to changing economic winds are pulling back hiring.

Source: ADP Employment Report

are nimbler and more responsive to shifting economic winds.

While large companies (over 500 employees) saw a net gain of 33,000, every other size range posted negative numbers.

The quits rate, a key measure of worker confidence, held steady at 1.9 percent with 3.1 million people voluntarily leaving their jobs. Quits decreased sharply in accommodation of food services (down 140,000) and in arts and entertainment (down 22,000), suggesting that workers in these sectors are less confident about securing new positions or are opting to stay put. On the other hand, quits increased in construction by 56,000, possibly reflecting opportunities tied to ongoing projects despite the broader slowdown in openings.

Layoffs and discharges stayed at 1.7 million, with a 1.1 percent rate remaining flat, reinforcing that employers are not

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ramping up job cuts. The BLS also revised July’s data modestly.

Job openings were adjusted up by 27,000 to 7.2 million, while both hires and separations were revised down by 68,000 to 5.2 million. Within separations, quits were lowered by 42,000 to 3.2 million and layoffs by 21,000 to 1.8 million. Taken together, the revisions and August’s steady readings reflect a labor market that is not deteriorating rapidly but is clearly past its peak, with fewer job openings, more selective hiring, and employees less willing to jump ship.

Combined with other measures of a slowing economy, this labor market data is likely to Unemployment continues its slow if steady upward trajectory, hitting the highest levels since 2021. push interest rates lower over Source: United States Bureau of Labor Statistics the next six months. Trading in the bond market suggests that Unemployment is typically the factor that tips the economy the bellwether 10-year Treasury will fall below four percent from slowing to recession. For now, the consensus of by early 2026. That would be a welcome development for economic consultants and investment giants is that consumer commercial real estate.

BreakingGround November/December 2025

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spending will continue to keep U.S. gross domestic product growing, albeit at a pace of 2.0 to 2.5 percent. Forecasters cite the strength of consumer spending in the third quarter despite weaker wage and income growth; however, spending is determined as much by unemployment outlook as by disposable income. Simply put, if you think you will get a paycheck next month you are more likely to spend than if you fear a layoff. And, since the end of World War II, unemployment has always jumped steeply in a short time immediately ahead of a recession. On average, unemployment rose 86 percent in a 13-month period once the economy contracted.

After rebounding early in the summer, consumer sentiment declines for the second straight month.

Source: University of Michigan Consumer Sentiment Survey

Policymakers at the Federal Reserve cited the slowing job growth and rising unemployment as the primary factors when voting to cut the benchmark interest rate by

a quarter point to a target range of 4.0 to 4.25 percent at its September meeting. The board expressed concern about inflation and the general uncertainty about economic

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outlook and the labor market. The Fed also said it would also continue reducing its holdings of Treasury and mortgage-backed securities.

increased by an annual rate of 3.8 percent. This marks a notable turnaround from first quarter of 2025, when the GDP decreased by 0.6 percent.

Speaking in Rochester in late September, New York Federal Reserve President John Williams stated that the signs of a weakening in the labor market led him to support the decision to cut interest rates, and the move was aimed at easing some of the policy restrictiveness to help protect jobs while still maintaining downward pressure on inflation, which remains above the Fed’s two percent target.

The BEA attributes this increase to a decrease in imports, which are a subtraction from the GDP calculation, and an increase in consumer spending. Growth was partially offset by decreases in investments and exports. This latest release was a 0.5 percent revision upwards from its second estimate, which they attribute primarily to an upward revision in consumer spending.

Williams emphasized that the Fed plans on proceeding cautiously, choosing to set policy on a meeting-by-meeting basis rather than committing to a pre-determined path.

While officials have penciled in additional cuts by year-end, Williams decided to signal his personal preferences for future cuts.

The decrease in imports is due to ongoing tariffs. In September, President Trump announced a new round of tariffs targeting the lumber and furniture industries, with a 10 percent duty on softwood timber and lumber and a 25 percent tariff on certain upholstered wooden products.

These took effect October 14th, and these measures follow a separate set of tariffs on kitchen cabinets, vanities, and other upholstered goods that took effect October 1st.

Despite ongoing concerns about inflation, Williams pointed out that some of the earlier risks to price stability have diminished. Tariff effects, once feared as a persistent inflation driver, have proven smaller than anticipated, and there are few signs of new inflationary pressures emerging.

September saw the Bureau of Economic Affairs (BEA) release its final estimate of the nation’s gross domestic product for the second quarter. It was estimated to have

The president argued that the policies would strengthen supply chains and revive U.S. manufacturing, but homebuilders warned that the higher input costs could discourage new construction and renovations. Canada, the United States’ largest wood supplier and already facing duties of over 35 percent, is expected to be hit especially hard.

BreakingGround November/December 2025

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ORGANIC

S&P Global released an updated economic outlook for the fourth quarter of 2025 in late September. The group nudged its outlook higher but still expects the U.S. economy to run below trend, forecasting real GDP growth of 1.9 percent in 2025 and 1.8 percent in 2026. After strong momentum late last year, growth has cooled as consumption softened, housing stayed frozen, and policy uncertainty weighed on activity.

The largest macroeconomic cross current remains tariffs. S&P now estimates the effective tariff rate near 17 percent (from 2.3 percent in 2024) with revenues on track for about one percent of GDP. That likely rekindles goods inflation, keeping core inflation a bit above three percent into mid-2026, and eroding purchasing power. Firms can’t fully absorb costs, supply chains can’t pivot quickly, and manufacturers reliant on imported inputs risk competitiveness hits. Meanwhile, tighter immigration policy (net migration is near zero) constrains labor supply, props up wages in immigrant dense sectors, and explains about half of the downshift from 2024 to 2025.

They see unemployment edging to 4.6 percent by mid-2026, then returning to 4.0 percent in 2027.

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Tariff related concerns weigh heavily on consumer sentiment.

University of Michigan’s latest consumer sentiment survey showed that consumer sentiment dropped from July to August. The figure now sits at 58.2, down from 61.7 the prior month, and the lowest number since spring of 2023.

The Conference Board Index also showed consumer confidence slipping in September. The latest release shows consumer sentiment falling 3.6 points to 94.2, the lowest level since President Trump began implementing his administration’s tariffs. The drop was driven by a sharp decline in the Present Situation Index, reflecting weaker views on business conditions and job availability, as the share of Americans saying jobs are “plentiful” fell for the ninth straight month. The expectations index also edged lower to 73.4, remaining well below the 80 threshold that signals recession risk.

Inflation remains a top concern in survey responses, while worries about jobs also climbed to a one year high. Average 12-month inflation expectations eased slightly from 6.1 percent to 5.8 percent but remained elevated compared to the end of 2024. Financial sentiment weakened notably, with consumers reporting the largest monthly drop in their current financial situation since 2022 and more respondents believing the economy is already in a recession.

As the year comes to a close, 2025 ends the way it began, with dramatic headlines that are not reflected in the data.

Though softening economic numbers indicate that this could change, and soon, the long-awaited impact of President Trump’s sweeping tariffs has yet to fully hit consumers, whose confidence is down but whose spending is not. To the extent that this dynamic does not change, and unemployment does not spike, a recession is unlikely. BG

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eptember was expected to bring a level of clarity to how construction markets were handling tariffrelated cost pressures, whether the summer surge in producer prices reflected the exhaustion of pre-tariff inventories procured ahead of President Trump’s sweeping implementation of tariffs in April of this year.

However, on October 1st, the federal government shut down.

At the time of this writing, the shutdown was entering into its third week, delaying the release of pricing indexes from the Bureau of Labor Statistics.

As such, the latest figures to dissect come from August, and do not necessarily reflect the reality of pricing entering the final quarter of 2025.

Though these numbers were less dramatic than July’s showing, when the producer price index (PPI) surprised the market by rising 0.9 percent, there are still indicators that the long-awaited impact of President Trump’s wide sweeping implementation of tariffs were being felt by producers.

sector, which climbed by 5.5 percent month over month and this series pricing has increased by over 22 percent since August of 2024. Steel mill products climbed by 1.5 percent from July to August and have risen by over 13 percent since 2024.

The asphalts cluster was more of a mixed picture, with swings in both directions. Asphalt (at refinery) and prepared asphalt and tar roofing rose by over two percent month over month, while #2 diesel fuel saw a month-over-month decline of nearly three percent.

While the current data offers a partial view, the ongoing shutdown has delayed the release of more recent pricing indexes, limiting visibility into how market conditions have evolved entering the final quarter of the year. Until those figures are available, assessments of tariff impact and price stability will remain provisional. BG

The concern amongst economists was that a spike in the PPI, which reflects pricing paid by producers to manufacture and create goods, would soon lead to an increase in pricing for consumers. Though August’s PPI dipped by 0.2 percent from July’s figures, they remain 2.6 percent higher than August of 2024.

Interestingly, the consumer price index, which measures what consumers are paying for finished goods, climbed by 0.3 percent. This is comfortably above the average month-over-month increase seen over the past two years and could indicate that rising producer prices are beginning to pass along to the consumer.

Of the 80 or so regularly updated construction pricing indices, exactly half saw upward momentum in August, with nine indices seeing month-over-month growth greater than one percent.

The metals sector continues to be the most impacted. Most indexes within this cluster experienced month-over-month price increases. August’s largest price hike was in the aluminum mill shapes

BreakingGround November/December 2025

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UPDATE

It is arguably the most beautiful county in metropolitan Pittsburgh. The heart of the Laurel Highlands is located in Fayette County, with a spine of the Alleghenies bisecting the county diagonally.

The Monongahela River forms Fayette County’s western border, and the Youghiogheny River flows south to north across the eastern half of the county.

West Virginia University Medicine Uniontown Hospital is the county’s largest employer. Photo courtesy WVU Medicine.

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Loaded coal cars leave an unidentified Fayette County mine, circa 1905-1907. Reproduced with the permission of the Coal and Coke Heritage Center at Penn State Fayette, The Eberly Campus.

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he natural beauty attracts the tourism that is the backbone of the economy in Fayette County. The elected officials and civic leaders of Fayette County recognize that a vibrant tourist industry is not the growth engine of the county’s future. They seek to align Fayette County’s economic investments align with the industries that are creating jobs now and in the decades to come.

Like the rest of the western Pennsylvania counties, Fayette County had an economy that was based on production, rather than tourism, until the industrial disinvestment that occurred in the 1980s. While it was not the heart of the steel industry, Fayette County was home to the earliest iron manufacturing furnaces in Pennsylvania, dating back to the 1780s. Later, much of the coal that fed the production of coke came from Fayette County. Frick Coke Company, owned by H.C. Frick, operated in Connellsville and provided almost half the supply of metallurgical coke used nationally, including by Carnegie Steel, and later, U.S. Steel.

Unlike some counties in Western PA, Fayette County’s recovery from the 1990s decline has been slow and uneven.

Employment in some of the highest paying positions, like mining, energy, and manufacturing, remains at or above the levels of employment in those industries statewide. But Fayette County has fewer than half the number of financial services and professional management jobs than the rest of the state. There is little new residential development,

which limits population growth. And, in the next two years, county leaders will have to deal with the loss of Penn State’s Eberly Campus.

In the face of these challenges, there is optimism in Fayette County. The current county commissioners recently approved a comprehensive study of the county’s economy that is very similar in intent to the 1993 study headed

by Carnegie Mellon president, Robert Mehrabian. That report, “Toward a Shared Vision” became the basis for Pittsburgh’s revitalization. Fayette County’s leaders have identified industries that they think will be the future drivers of growth, but they are prepared to have the research and market feedback steer the resulting economic vision. That vision, the county’s leaders hope, will be the blueprint that sparks growth.

Fayette Fundamentals Fayette County shares most of the same demographic challenges that its neighboring counties, and the metropolitan area, face; however, some of these challenges are more severe in Fayette. Compared to benchmark regions where there is economic growth, Fayette County has a steadily declining population that is older than the U.S. median. From the most recent high-water mark of 162,700 in 1979, Fayette County’s population has declined steadily, falling 23.8 percent during that 45-year period to an estimated 123,941 in 2024.

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As of 2024, the median age of a Fayette County resident was 45.4 years, more than six years older than the median U.S. resident, and 2.6 years older than the median resident of the eight-county Pittsburgh metro.

Businesses looking for new locations or expansion prefer sites with growing, or at least stable, population nearby.

Site selection consultants note that companies typically look for a minimum of one percent population growth to ensure that there will be ample workforce for a new facility.

That threshold often eliminates all metropolitan Pittsburgh, including Fayette County.

“The industrial demand drivers in Western Pennsylvania are either expansion or distribution support of finished product or raw materials for manufacturing operations or servicing of existing buildings and rooftops from a last-mile or middlemile distribution standpoint,” says Mateo Villa, principal at Genfor Real Estate Services.

Digging deeper into the population and workforce demographics, the challenge facing Fayette County’s leaders becomes clearer.

Compared to the metropolitan counties that share a border with Fayette County, the workforce in Fayette is significantly smaller. While the civilian workforce is almost exactly half the total population in Washington County and Westmoreland County (and 52.6 percent in Allegheny), the workforce-to-population ratio in Fayette County is only 43.7 percent.

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It is not a surprise that Fayette County’s population density is also lower than its neighbors. There are 156.8 people per square mile in Fayette County, according to the 2024 Census Bureau estimates. In Washington County, the population density is 245.3 persons per square mile; in Westmoreland, the density is 341.7 persons per square mile; and in Allegheny County, the density is 1,677.6 persons per square mile. For most residents of Fayette County, that sparser population is a plus; however, for industrial development, it is another hurdle.

“I have not seen much interest in Fayette from people approaching us about building on sites. I can’t really pinpoint exactly why, but my sense is that the county is fairly sparsely populated if you compare it to Washington, Westmoreland, and Allegheny,” says Matt Virgin, executive vice president at SunCap Property Group. “Industrial users and even the warehouse distribution users are running very sophisticated workforce models and if they don’t feel they can hire the people in an area to staff their facilities, that area is discounted very quickly. Confidence in an adequate workforce is almost more important than proximity to highways.”

“Unless you have a reason to locate a big building here to support a manufacturing operation or a more reasonable size building to support a population center that’s within the Pittsburgh MSA it’s a struggle to locate here from a logistics standpoint,” continues Villa. “Fayette County, for better or worse, is not going to experience demand from users that are

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Fayette County has the smallest population of the five counties that originally comprised the Pittsburgh MSA. Source: U.S. Census Bureau.

"AGE AND SEX." American Community Survey, ACS 5-Year Estimates Subject Tables, Table S0101, 2023. Data current as of April 2025.

trying to get product to rooftops or local businesses because of the lack of concentration.”

While concerns about available workforce may be headwinds for commercial development, Fayette County employers are nonetheless expanding. Since the pandemic, Nemacolin has expanded and undergone a major renovation; Boeing has expanded; Advanced Acoustic Concepts added 30,000 square feet; the 27,500 square foot CareHub Outpatient Center was built in South Union Township; Fay-Penn Economic Development built a 100,000 square foot spec building in Dunbar Industrial Park; and Hranec Corporation has built two new manufacturing and fabrication facilities totaling 340,000 square feet.

It is understandable that models reliant upon density or population growth would not be favorable to Fayette County; however, the current workforce data suggests that industrial employers are finding workers. According to September 2025 data from the PA Department of Labor and Industry, 9.2 percent of workers in Fayette County are involved in manufacturing, nearly identical to the 9.4 percent rate for the entire state. Two percent of the employees in Fayette County are involved in mining and oil/gas extraction, a rate that is more than six times the statewide average.

Annual wages for the latter are the highest in the county, at $109,766, and are $4,000 higher than oil/gas workers elsewhere in Pennsylvania.

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Fayette, $28,892, are relatively low.

The widest gaps between Fayette County and the rest of the state, both in terms of employment and wages, are in financial services, information technology, and business management.

In all three of these industries, the share of Source: Bowen National Research, Housing Needs Assessment for Fayette County, 2023-2024. workers employed in Fayette County is less than one quarter the The industries that employ the most people in Fayette statewide average, and the wages were slightly higher than County are healthcare and lodging and food service. Not half the statewide average. surprisingly, the county’s two largest employers are West Virginia University Medicine (WVUM) Uniontown Hospital and Nemacolin Resort, each of which employs around 1,000 workers. Healthcare workers in Fayette County earned $51,963 annually in September, slightly above the overall median wage for all workers in Fayette County. But that wage was almost $13,000 less than the statewide median wage for healthcare workers. Food service and lodging workers earned about $4,500 more annually than the statewide median wage, but the annual earnings for those workers in

While regional leaders would like to see more jobs created in these higher-paying industries, one reason that this data reflects more poorly on Fayette County is that many of the people who work in Fayette County do not live there.

According to Bowen National Research, which did a housing needs assessment in 2023-2024, nearly one in three people employed in Fayette County live outside the county. The biggest reason for that is the lack of housing.

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Bowen’s study found that Fayette County’s housing market was extraordinarily short of options, either for rent or sale.

It surveyed thousands of apartment units and found an occupancy rate of 99.6 percent. The rental occupancy rate for healthy, well-balanced markets is 94-to-96 percent. Bowen also found that non-conventional rental housing (units that are not in a multi-family apartment) made up 80.1 percent of the rental stock in Fayette County. That compares with a rate of 63.8 percent statewide.

The story is similar for owner-occupied homes. Bowen’s research found that 0.8 percent of privately-owned homes were available, well below the 2.0 percent to 3.0 percent availability that characterizes a well-balanced for-sale market.

Fayette’s tourism is a factor in the housing shortage, as many family homes are being sold as short-term rentals to be used by visitors to the county’s attractions.

Of greatest concern to Fayette County leaders is the finding that there were 14,443 daily in-commuters to the county.

That figure was updated to more than 15,000 this year. More than half of those are between 30 and 54 years old and 44.4 percent earned $40,000 or more annually.

The problem is one that Mark Rafail, economic development coordinator for Fayette County, feels is critical to address. In early August, the county hosted a housing market summit to get input from developers and builders. The summit attracted the nation’s top builder, D.R. Horton, which has been building in the Pittsburgh region since 2023. Rafail reports that the panel was candid about the challenges of new residential development generally, and in Fayette County.

Michael George is president of Mountain Creek Properties and a board member of Fay-Penn Economic Development Council, which commissioned the Bowen housing assessment.

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He sees the challenges facing new residential construction as being mostly beyond what Fayette County can control.

George also takes issue with the report’s conclusions about the size of the opportunity to develop, especially in the middle-and-upper income properties.

“Do we have a tight housing market? Yes, we do. We’re 100 percent occupied at all points in time. Where I disagree with the report is that you cannot build today for the rent you can achieve in Fayette County,” George says. “The report assumes that you can get higher rents in Fayette County than are realistic. There is a threshold to what people are willing to pay for rent. We test the market all the time with our nicer units and it’s $1,300, $1,400, maybe you get $1,500. Our average rent in Fayette County is probably $950 to $1,000 per month.

The math doesn’t work for new construction at those rents.”

“I don’t know that there’s the bandwidth in Fayette County to develop 150 units at $1,800 in rent for a two-bedroom, one bath with no garage, which is what you have to build to make the numbers work. I don’t think that’s just the case for Fayette County, by the way. It’s the case for any of the secondary and tertiary areas,” he continues.

George suggests that it may take assistance from an economic development agency or fund to prepare sites or otherwise intervene to bring the cost basis of a unit to where the market rents are. Rafail believes that there needs to be more information available about what properties are available or feasible for development.

“I’d like to see something like PA SITES in Fayette County for large scale residential sites,” he says. “We have four areas that we could develop quickly because they already have the infrastructure available to the end of the road. There are 60 lots ready for development in Albert Gallatin School District south of Uniontown. Fay-Penn has property with 100 lots, and there’s a site in Connellsville that could be up to 190 lots if we resolve some zoning issues.”

Like with multi-family, however, there are market factors that make single-family development challenging. Some of these factors are not unique to Fayette County.

Construction costs are much higher than before the pandemic. Environmental regulations slow development and add costs across the commonwealth. But the market dynamics in Fayette County are factors.

Fallingwater (shown here) and Kentuck Knob, designed by Frank Lloyd Wright, are in Fayette County. Photo by Kirk Thornton.

During the 2010s, builders started roughly 65 homes annually on average, but that number has fallen below 43 homes since 2019. At that rate, it would take more than eight years to build the 350 lots Rafail identified as ready or near ready for development. That is not an absorption rate that will attract higher-volume builders like D.R. Horton or Ryan Homes,

BreakingGround November/December 2025

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Pittsburgh’s most active homebuilder. Moreover, the average home price of existing homes for sale is lower than builders would find attractive as competition. Even with the steady price appreciation totaling 22 percent since 2020, roughly two-thirds of the homes for sale in Fayette County are listed at $200,000 or less.

Despite the difficult market fundamentals, Fayette County leaders see the large share of daily commuters to the county as an opportunity for new residential, especially for family homes. It is true that without any large-scale developments, it is difficult to get a true measure of lot absorption. The housing in Fayette County may suffer more from scarce supply than weak demand. That is one of several key assumptions that leaders would like to test with a new comprehensive strategic plan for Fayette County.

Fayette County’s Game Plan “There is a different – and I hate to use the word – vibe this time,” says Muriel Johnson-Nuttall, executive director of Fayette County Chamber of Commerce.

Nuttall is referring to the expectations for the Economic Development Vision and Action Plan, which was recently awarded to Fourth Economy to prepare. Like the Mehrabian report done in 1993, this visioning effort is expected to create consensus about the economic future of Fayette County.

“We have been laying the groundwork for this for quite a few years. There have been many strategic plans done for the county. Those plans had a purpose. To bring grant money in, we had to have a comprehensive plan in place and for that purpose it was good,” Nuttall says. “Those plans looked at all the areas we’ve always looked at. They considered all the things that we’ve always considered. But, by design, the plan wasn’t set up as a forward-thinking plan with implementable achievable goals. The difference in what we’re trying to do right now is that we’re looking beyond the areas we normally consider.

We’re thinking about where we want Fayette County to be 25 years from now or 10 years from now. We’re looking at five emerging primary industry areas to try to figure out where we want to be and develop a strategy to get there.”

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recommended best uses are for all our land, whether it’s downtown Uniontown or it’s the mountains and valleys’ Rafail explains. “This is a commissioner-driven project. They’re supportive and understand that the answers may not be what they expected.”

“We’re going to look at the organizations, the Chamber, the County Economic Development, Fay-Penn, the Redevelopment Authority, Community Action, and all the entities that work together to figure out what each will be responsible for with this visioning strategy,” Nuttall says.

“We’re all working well together and working forward, but there are areas of overlapping responsibility. That can be good, but we need to figure out where it’s the best strategy to overlap. We need a map. Several of these organizations are changing leadership so it gives us a moment to make sure we’re all moving in the right direction.”

Rafail says that there are two phases to the project, with a final deadline for the Economic Development Visioning Strategy and Action Plan to be completed just under a year from now.

“We selected that time frame in the request for proposals because we are tired of kicking the can down the road and we have commissioners in place that want to move forward,” Rafail says. “When we talked to organizations about matching funds for the plan, there was no hesitation to pitch in. One reason is that they saw what the governor has done with his economic strategic plan. We are going to go one step deeper too identify the categories that we know will help Fayette County.”

To conduct a baseline situational assessment and generate strategies, Fayette County is asking Fourth Economy to organize working groups in five industries: energy, agriculture, manufacturing, tourism, and healthcare. Groups will also look at the growth strategies for housing, education, and land use.

Agriculture, tourism, and healthcare are Fayette County’s

Rafail draws an analogy to the steps taken prior to former Horseheads Corporation site in Monaca being selected by Shell Chemicals to develop a polymers plant.

“A market study was done that identified that [chemical manufacturing] would be a good use for that site. We want to do the same thing.

We want to know what the

An inland barge is launched in the Monongahela at Brownsville by Heartland Fabrication, one of two barge manufacturers in the U.S. Photo by Fayette County Chamber of Commerce.

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current major industries. The other two segments are emerging industries in Fayette County. Energy, in particular, looks to offer opportunities for rapid growth.

“The energy industry is one that everyone is looking at. We know we have untapped natural gas below us. We can be leaders, or contributors in energy,” Rafail says.

“The study may take a look at all this and tell us we’re wrong. But we’re pretty sure that no matter what industries the study identifies, energy will be a part of it.”

The timing of the strategic planning is good. Development and construction are in something of a lull as 2025 winds down.

Karyn Wallace started as the new CEO of WVUM Uniontown Hospital in June 2025.

The new leadership team is assessing the facility’s needs and no major capital projects are in the pipeline now. The new federal budget has expanded the potential for Opportunity Zone development, but the government shutdown and the commonwealth’s budget problems mean that leaders cannot learn where they may be additional Census Tracts in Fayette County beyond the two already identified in Connellsville.

Assuming the Economic Development Vision and Action Plan is completed by fall 2026, it will be immediately useful for Fayette County’s leaders as they deal with the closing of Penn State’s Fayette campus.

On May 22, 2025, Penn State’s Board of Trustees voted to close seven of its Commonwealth Campuses, including Penn State-Fayette’s Eberly Campus in North Union Township.

The closure will occur in spring 2027 at the conclusion of the academic year. As the only four-year higher educational institution in Fayette County, Penn State was an asset for local students and local businesses, in addition to being a large employer. The closing of the Eberly Campus creates economic and educational problems for students, employees, and the campus’ real estate assets. Depending on how Penn State executes the closing, whether it allows for a successor entity to assume some of educational offerings or shutters and liquidates the campus, the impact on Fayette County’s economy may be limited or widespread.

Fayette County Commissioners acted quickly, establishing the Eberly Campus Transition Committee to explore what opportunities may come from the closing. Scott Dunn, chairman of the Fayette County commissioners, says that the committee has had discussions with the university staff responsible for the transition, but very little has been decided about the key questions of the future of the students and staff at the Eberly Campus.

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Photo by Fayette County Chamber of Commerce.

Interviewed in October, Mike Stefan, Penn State’s vice president for government and community relations, characterized the meetings with community leaders as having gone well; however, Fayette’s economic development leaders remain frustrated by the lack of information from Penn State about its plans.

“Penn State is trying to figure it out. Until they figure it out, we can’t move forward,” says Rafail. “I understand their dilemma. How many times has a university closed campuses?

The problem for us is that the longer it takes them to figure it out, the less time we have to put something in place. I can put something on paper, but I can’t execute it.”

Rafail notes that there is space available for whatever parts of the current Eberly Campus’ programs may be viable to evolve into a new higher education program that is independent of Penn State; however, funding does not exist to build something on speculation. Without some assurance of what programs a succeeding institution might be able to offer, there is little that the Eberly Campus Transition Committee can pursue or recommend.

The leaders in Fayette County seem ready for economic change, even if there is some pain or uncertainty involved.

There is a concerted effort to align the county’s resources with what the market dictates. As a sparsely populated county, Fayette County has lots of land where resources and opportunities could meet. At the very least, Fayette’s new strategic plan should give its leaders a better idea of the inventory available for opportunities.

“We have six sites on PA SITES and we should probably have 50,” Rafail says. “We need more cooperation from developers and landowners so that we can have an inventory that is reliable when an opportunity arises.” BG

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PROJECT PROFILE LIVE WELL APARTMENTS

Photo by Roy Engelbrecht Photography

I

n July, the final certificate of occupancy was issued for the LiveWell Apartments. That milestone marked the successful conclusion of a three-year partnership between Dick Building Company (DBC) and developer Victrix LLC. The $50 million office-to-residential conversion brought new life to a 120-yearold building that had most recently been the headquarters of GNC Corporation.

The building at 550 Wood Street (also known as 300 Sixth Avenue) has had three distinctly different lives since it was designed by Daniel Burnham and developed by Henry W. Oliver in 1904. At the time of its construction, the 14-story building was a state-of-the art department store for luxury retailer McCreery & Company. By 1956, the building had been renovated several times and was used as an office building, originally as home to steel maker Blaw-Knox Corporation. It remained a multi-tenant office building until GNC acquired it in 1996. From 1996 to 1990, the building’s penthouse was home to the Pittsburgh Press Club.

Following the pandemic, GNC chose to downsize its office footprint and moved to 3 Crossings in the Strip District. New York-based developer, Victrix LLC, acquired the building in 2021 with the intention of giving it new life as a luxury apartment. Victrix

commissioned Strada Architecture LLC to design the conversion of 550 Wood Street. By the fall of 2021, Victrix brought on DBC as the general contractor and construction manager.

“We were interviewed in October 2021 and by the end of the meeting Victrix told us they wanted to work with us to develop a guaranteed maximum price (GMP). Our first meeting with the client was right after the New Year of 2022,” says Jeff Braum, vice president of construction at DBC. “During that pre-construction phase we did pricing, and we did a lot of logistical studies and worked with key vendors to identify long lead time items. For example, we were released to order the switchgear even before we had a GMP in place. Because they were getting historical tax credits, we needed to release the window contract separate from our GMP. They had a six-month lead time, so we had to get that going in June 2022.

“The owner had a well-established design development set when we came on board, so we did selective estimating for them during pre-construction. We were already having weekly meetings. By July of 2022 we were on the street with full bid packages and [Superintendent] Brian Hockenberry was on site doing selective demolition. We were released to start construction in March 2023.”

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Getting an office-to-residential conversion of the scale of LiveWell – renovating 314,000 square feet to create 253 apartments – designed and priced in one year would be a challenge under any circumstances; but the particular circumstances of 550 Wood Street added complexity. The previous changes in usage, numerous renovations, and lack of documentation presented challenges before the first unit was designed.

“There are some buildings that are really set up to be apartments, but this building has essentially a single-loaded core. When you think of most downtown buildings, you think of some kind of central core of elevators and stairs, but this building had the elevators and stairs moved to the east side of the building to open the floor plate when there was retail on the ground floor.

From an apartment standpoint, that meant that we had a lot of depth away from the windows,” says Sean Beasley, principal at Strada Architecture LLC. “Each unit is 75 feet deep, which is more than double what we would design in a typical apartment.”

“We took advantage of the floor-to-floor height that is almost 16 feet to bring light into what were really deep units,” he continues.

“We used that height and connectivity from the doorway to the 10-foot windows to allow light to penetrate deep into the apartments and ultimately make them very comfortable.”

The windows became a pivotal point of the scope of work.

Victrix was taking advantage of historic tax credits as part of the financial justification, so replacing them was a critical piece of the renovation. Because of the size of the windows, roughly five feet by 10 feet, and the building’s structural system, the window

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replacement became a task that influenced several other major scopes of work.

“The windows were enormous and were difficult to replace,” Braum recalls. “Early on, we identified that the window frames could not be maneuvered through spaces that were renovated, so we left a temporary corridor around the exterior of the building and had to fall back and frame the permanent walls after the windows were installed.”

“The other challenge with the window replacement was that we were working from the top down in this building and at some point, we were going to pass the crews that were replacing the windows,” Braum continues. “The temporary corridor allowed all crews to continue working.”

There was also a safety concern because of the weight of the windows. DBC worked with BrandSafeway to develop scaffolding that wrapped the building to protect pedestrians and traffic below. The scaffolding then provided Victrix with the opportunity to clean and restore the decorative terra cotta exterior.

Beasley notes that the window replacement, which was required to meet the historic restoration requirements, reversed a 1970s renovation that included installing dropped ceilings that blocked almost half of the window.

“When we removed the ceilings, it exposed the original windows and the owner moved forward with replacing those windows with the full glass lights. I think one of the main design features of the building is the amount of light that comes into each unit,” he says.

Photo by Amy Pischke, Zillow Media Experts

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Another challenge that was a result of a previous conversion was the restoration of the lower floors. During the 1930s, the building’s owners replaced the original storefront glazing with fewer small windows and installed a glass art piece know as “The Puddler.” When GNC owned the building, The Puddler had been buried in what was GNC’s archive and file room.

additional contingency, which Dick says helped “de-risk” the project further. At the project’s completion, a typical ownercontractor shared savings occurred.

“We took advantage of The Puddler and centered our amenities around it. We opened the back of the glass art piece and restored the neon so that it becomes the focal point of those spaces,” Beasley says. “The units on that floor are double height, more than 20 feet high. There are two stories of punched small windows within those spaces. They are unique in that they have very deep windowsills, which gives the ability to inhabit that space.”

“Inevitably, things came up that didn’t match what showed on the drawings because the existing documentation we had on the building was inadequate,” recalls Brady Sheerin, director of construction and development for Victrix. “We used the drawings we did have to complete our layouts only to find that there were busts all over the building in terms of dimensions. We expected things to be in certain locations only to find out when we did our installations that what was supposed to be there was not.”

The characteristics of the building’s previous iterations were mostly undocumented for renovation. Since the information Strada and its engineers had was incomplete, there was an elevated risk of unexpected costs associated with unforeseen conditions. One of the innovations that DBC employed to mitigate the risk for itself and the developer was what DBC’s chief operating officer, Alex Dick, calls a “dual-phase GMP.” To help Victrix secure its financing during design, DBC developed a guaranteed maximum price (GMP) based upon the design and extensive exploratory demolition. A final GMP was completed when design was completed. Included in the GMP was a contingency that triggered shared savings with the owner at a certain threshold. DBC took its share of the savings to fund

“We had a great relationship with Strada and the client. There was constant communication between us and Nicole Harkins, who handled the day-to-day issues for Strada and was always available. Any request for information (RFI) we wrote were always confirming RFIs, because we had already figured out the solution with them,” Braum recalls. “Brady and I had a great rapport. We were very open with each other. You can imagine, with all those unforeseen conditions there were a lot of changes to manage.

That process couldn’t have been better. We didn’t have loose hands that were the result of indecision.”

Photo by Amy Pischke, Zillow Media Experts

While the cost risk of unforeseen conditions may have been mitigated, the impact to the schedule and sequencing remained.

“We had to figure out economical ways to maintain the schedule and tackle those unforeseen obstacles. The pre-planning and investigation that [DBC] was able to do helped to mitigate quite

BreakingGround November/December 2025

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The glass window art, The Puddler, was uncovered and used as a centerpiece in the amenity space. Photo by Amy Pischke, Zillow Media Experts

a bit of that but, at the end of the day, you’re going to run across those kinds of problems,” concludes Sheerin.

During construction, numerous other challenges appeared that resulted from the unforeseen conditions. A staircase connecting the top floor to the roof-top amenity space had to be redesigned because the roof structure was not as documented. The structure

would not accommodate a hoist, so one was installed inside a decommissioned elevator shaft. The sidewalk surrounding the building required re-shoring because the basement extended to the curb. A retail tenant, Key Bank, remained open throughout the project, requiring DBC to keep its space protected from the construction activities. The lead time for the electrical switch gear slipped to 78 weeks. Even though it had been ordered before

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there was a GMP, the delay required the existing gear to be used temporarily to power the first phase of apartments to be completed.

“There were numerous things like that.

There was a daily rabbit hole that you had to go down to fix a problem,” chuckles Braum.

Victrix’s plan for rolling out the units in phases required unusual flexibility and coordination. DBC completed four floors for occupancy in November 2024. To get a temporary certificate of occupancy for the first 60 units, the team had to fully meet the life safety requirements of both Pittsburgh’s Permits Licenses and Inspections Department and the PA Department of Labor and Industry.

That meant building temporary elevator lobbies, complete with finishes, among other changes. They also had to prevent occupants from accessing any areas under construction.

“We had numerous meetings working with the architect and made numerous revisions to the drawings to get it done.

That process was done differently from how we would have planned it for one final occupancy permit,” says Braum.

The pace accelerated in 2025, as DBC and its team pushed to get the remaining floors completed for occupancy. A second temporary occupancy permit for the remaining units was issued in March 2025.

The parking garage construction and final work were completed in July 2025.

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“I was on that job full-time from the end of June of 24 until end of February of this year. It became all hands on deck and between me, Superintendent Emily Golnazarian, and Brian,” Braum says.

“Everybody figured out what was needed to get things done. The success of the job came from the camaraderie, the teamwork with the owner and the architect.

“The project’s success had a lot to do with the overall team, from ownership setting up the financing and working with investors, all the way down to the subcontractors who helped execute the project, along with our design professionals,” says Sheerin. “Getting the right team together, all working towards that common goal of implementing problem-solving techniques, made things work.” BG

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Photo by Amy Pischke, Zillow Media Experts

PROJECT TEAM Dick Building Co. Victrix LLC

Strada Architecture LLC

Atlantic Engineering Services Iams Consulting LLC AJF Mechanical

Patrinos Painting and Contracting Automated Entrance Systems

Crown America International (CAI) Triple 3 Construction

Schlaegle Design Build

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General Contractor

Owner/Developer Architect

Structural Engineer

Marsa Inc.

Pittsburgh Interior Systems Abmech Acquisitions Seech Industries

Plumbing Engineer

Window Systems

Painting

Keystone Flooring

Plumbing

Storefronts & Entrances Residential Casework Interiors

Custom Casework

Masonry

Drywall/Carpentry

Asbestos Abatement

Structural Steel Windows

LL Mechanical Services

Design-Build HVAC

Schultheis Roofing, Inc.

Roofing

Mongiovi & Son Fire Protection

Leone Electrical Contractors

Flooring

Fire Protection

Design-Build Electrical

LEGAL PERSPECTIVE CONSTRUCTION INDUSTRY ALERT: POTENTIAL RISKS RELATED TO PORTLAND LIMESTONE CEMENT

BY D. MATTHEW JAMESON III, ESQ. AND AARON M. SCHEIBELHUT, ESQ.

T

here is a growing concern in the construction industry involving the use of Type 1L cement, also known as Portland Limestone Cement. Marketed as a more affordable and more environmentally friendly alternative to traditional Portland cement, Type 1L is gaining traction with regulators and sustainability-minded contractors and owners for its promise of a lower carbon footprint. But behind the green label, recent reports from job sites and courtrooms suggest this new material comes with a set of challenges that can carry serious legal and financial consequences.

are also being observed. These concerns aren’t isolated. In fact, one online resource is actively tracking cases of surface failures and unexpected field performance.

Importantly, many of these failures appear to stem from a lack of awareness about how differently this cement behaves compared to traditional Portland cement mixes. For instance, faster set times can lead to surface damage even when placed and finished with timing consistent with traditional Portland cement. When concrete finishers are not familiar with the unique behavior of Type 1L cement, contractors may be left facing liability for problems they did not even realize they were creating.

Marketed as a more affordable and more environmentally friendly alternative to traditional Portland cement, Type 1L is gaining traction with regulators and sustainabilityminded contractors and owners for its promise of a lower carbon footprint.

The key difference between Type 1L and traditional Portland cement lies in the limestone content. Type 1L contains up to 15 percent finely ground limestone (with plans to increase up to 30 percent), compared to the typical five percent in traditional Portland cement. This change in composition affects how the cement behaves in the field. Its finer particles can reduce workability, increase water demand, decrease bleeding, accelerate set times (particularly at higher temperatures), increase permeability, and change how the material finishes and cures. As a result, contractors are reporting a range of issues, including weak or dusty surfaces, spalling, early cracking, and curling. In polished concrete applications, concerns over pin-holing and discoloration

These risks can often be avoided with proper training, thorough contract specifications, and project planning.

Design professionals should not assume Type 1L is a direct, one-to-one substitute for traditional Portland cement and if the owner wants to use Type IL to further green construction goals, the project specifications should alert contractors to the need to familiarize themselves with the unique challenges of working with Type 1L cement. Contracts should clearly set forth expectations related to the use of concrete with Type 1L cement. For example, there are some suggestions that concrete with Type 1L cement should be poured in shade and/ or with an evaporation retarder. If the design professional wants to implement such protective measures, they should be spelled out in the specifications so that the contractor can include those costs in its bid. Equally important, contractors may want to negotiate the right to request a change order if the use of Type 1L cement requires modifications to traditional finishing techniques, curing procedures, joint timing, or admixture use.

Strong documentation should be an essential standard practice. Photos, finish logs, site reports, and hardness testing results can be critical in resolving disputes or defending claims related to alleged concrete failures.

While manufacturers and trade organizations are beginning to offer technical guidance on how to train contractors to modify field practices related to the use of Type 1L cement, the legal risk remains high, especially if parties proceed without updated specifications or appropriate contract safeguards. Type 1L cement appears to be here to stay, but industry players must adapt. A small gap in knowledge or https://www.1LCementProblems.com

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paperwork could translate into major exposure when concrete does not perform as expected. BG Matt Jameson is a shareholder in Saxton & Stump’s Construction, Construction Litigation, and Commercial Litigation groups. He can be reached at mjameson@ saxtonstump.com. Aaron Scheibelhut is an associate and member of Saxton & Stump’s Construction, Franchise Litigation, and Commercial Litigation groups. He can be reached at ams@saxtonstump.com.

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FINANCIAL PERSPECTIVE CUT COSTS, GAIN EXPERTISE: WHY CONSTRUCTION COMPANIES ARE TURNING TO OUTSOURCED ACCOUNTING

How can you tell if your construction business might benefit from outsourced accounting? Explore the signs, advantages and strategies of scaling without financial chaos.

BY MIKE CLARK, CPA You’re Building Your Business Quickly — But Are the Numbers Keeping Up? Like many construction business owners, you may not have thought much about outsourcing your accounting operations. However, the situation could rapidly become critical if you realize that your books are a mess, you don’t have the financial information you need, your team is overwhelmed, and it’s starting to feel like your business is outgrowing its back office. If this sounds familiar, you might be hitting the financial ceiling, right when you should be breaking through it.

What Does Outsourced Accounting Actually Mean?

It’s not just about hiring a bookkeeper. Outsourced accounting is a scalable solution where external professionals handle specific aspects of your financial operations where you need assistance, such as bookkeeping, controllership, cash flow forecasting, payroll, and even CFO strategy. You receive expert financial insight, without inflating your payroll.

How to Know When It’s Time to Outsource Accounting An increasing number of construction business owners have made the decision to outsource some aspects of their accounting operations, due to issues such as: •

Growing complexity in job costing

•

Increased need for accurate reporting for banks/bonds

•

Compliance with GAAP accounting

•

Talent shortages making it difficult to hire qualified accounting staff

•

•

Job Costing Is Inaccurate or Nonexistent If you’re unsure whether your last project made money, or which phase exceeded budget, you’re essentially driving blind. Outsourced controllers bring discipline to job costing systems and bring meaning to the numbers so you can better price future jobs.

•

Your Tax CPA Keeps Finding Messes A valued tax CPA shouldn’t spend time cleaning up errors every tax season. If your tax CPA is constantly asking for clarifications or adjusting books, that indicates a deeper issue.

•

Your Bookkeeper Is Drowning in Complexity The bookkeeping role can quickly become complicated and challenging. Managing complex revenue transactions, managing multiple crews, and understanding retainage, insurance audits, and multiple job sites are all signs that additional help is needed in the finance department.

•

Accounting Tasks Fall on You as the Owner If you’re still approving every invoice, chasing unpaid A/R, or wondering what your true profit margin is, it is likely time to start delegating some accounting tasks and focusing on strategy, more like a CEO.

When Is It Not Time to Outsource Accounting?

It is likely not the right time for outsourcing your accounting operations if the following conditions apply: •

Revenue transactions are simple

•

You have one job at a time and little complexity

Desire for real-time financial visibility

•

Your internal team is experienced, accurate, and proactive

•

Owners tired of hand-holding their accounting team

•

•

Lack of internal accounting knowledge at the business

You’re not ready to give up control (and you’re willing to do the work)

Additional indicators that it might be time to retain some outsourced accounting expertise for your construction business, include:

Top Benefits of Outsourced Accounting for Contractors

•

You’re Unclear About Cash Flow If you are guessing whether you can cover payroll this month, unable to establish a clear payment schedule, or relying on your gut instead of a forecast, it’s time to get more help. Outsourced controllers give you real-time dashboards and weekly visibility into cash.

•

Immediate Access to Specialized Expertise Outsourced providers bring deep construction industry know-how. You’ll no longer waste time training someone on WIP reports or retainage—because they already speak the language.

•

Month-End Close Is a 6-Week Nightmare Closing the books should be rhythmic, not reactive.

If you’re getting P&Ls weeks late, or worse, not at all, your internal team may be struggling.

•

Scalable Solutions that Grow with You Need weekly reporting today but full-blown forecasting next year? No problem. Outsourced teams grow with you—without the HR headaches.

Outsourced accounting contractors, including:

provides

many

benefits

BreakingGround November/December 2025

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•

Cleaner Financials, Faster Decisions Outsourcing ensures your books are always up to date, dashboards are real-time, and you can make decisions on facts—not hunches.

•

Improved Bonding Capacity and Bank Confidence Clean books, timely reporting, and accurate financials mean you can negotiate stronger lines of credit and win more bonded jobs.

•

Better Job Costing = Higher Profits You’ll stop losing money on change orders, overtime, or buried material costs. Controllers dial in the coding and review job margins regularly.

•

Tax Season Doesn’t Feel Like a Fire Drill With clean books and reconciled accounts, your tax CPA can focus on strategy instead of damage control.

Not only will this lower stress, but it will also provide more opportunities for minimizing taxes.

What are the Standard Accounting Roles and Which Should Be Outsourced First?

Many construction companies start out with bookkeeping, then as their business grows and the volume of transactions increases, they find they need an additional level of oversight. At this point, they often supplement with a fractional controller and/ or a fractional CFO. Internal Function

Outsourced Role

Basic Bookkeeping

External bookkeeper

Controllership

Fractional Controller

CFO-Level Strategy

Fractional CFO

In general, when considering outsourced accounting services, it makes sense to start by addressing any bottlenecks in your operations which would benefit from additional expertise: The Church of the Ascension, completed in 1907, is a historic masonry structure made of Beaver Valley Sandstone with intricate carvings in Pittsburgh’s Oakland neighborhood.

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• Bookkeeper Bookkeeping is the basic foundation of the accounting process. It involves systematic recording of financial transactions including sales, purchases, receipts, payments and journal entries. Bookkeepers ensure that all financial data is accurate and up to date, which is essential for preparing financial statements and reports. Additional responsibilities typically include managing accounts payable and receivable, reconciling bank statements, maintaining the general ledger, preparing invoices, and processing payroll.

• Fractional Controller A Fractional Controller is a part-time or contracted professional who oversees the accounting operations of a business.

They ensure the accuracy of financial statements, interpret financial data, and provide insights to management.

Fractional Controller responsibilities include ensuring compliance with accounting standards and regulations, managing the month-end and year-end close processes, preparing financial

statements and reports, conducting financial analysis and budgeting, implementing and maintaining internal controls, and overseeing the work of bookkeepers and accounting staff.

•

Fractional CFO A Fractional CFO (Chief Financial Officer) is a parttime or contracted executive who provides strategic financial leadership to a business. They focus on the big picture and help guide the company’s financial strategy.

Fractional CFO responsibilities include developing and implementing financial strategies, managing cash flow and financial planning, analyzing financial risks and opportunities, providing insights and recommendations to the executive team, overseeing fundraising and investor relations, and leading mergers and acquisitions.

the transactions and work to close the month in an accurate and timely manner. Fractional CFOs are often involved in high-level decision-making and may work more closely with the executive team throughout each month.

By leveraging these specialized roles, businesses can ensure accurate financial reporting, maintain compliance, and make informed decisions that drive growth.

Union Craftsmen

While there is some overlap in the responsibilities of Bookkeepers, Fractional Controllers, and Fractional CFOs, there are key differences in their roles and focus areas: •

Scope of Work Bookkeepers handle data entry and day-to-day financial transactions.

Fractional Controllers focus on financial reporting and compliance. Fractional CFOs provide strategic financial leadership.

•

Level of Responsibility Bookkeepers have a more transactional role focusing on every entry that is made. Fractional Controllers have a managerial role offering oversight and leadership for the accounting team.

Fractional CFOs have an executive role working with company leadership and outside investors.

•

Decision-Making Bookkeepers ensure accurate record-keeping. Fractional Controllers provide financial insights and ensure compliance with accounting standards.

Fractional CFOs make strategic financial decisions for the business.

•

Time Commitment Bookkeepers, Fractional Controllers, and Fractional CFOs typically work on a part-time or as-needed basis.

This time commitment will be different based on each company’s needs. Bookkeepers will be needed to process all monthly activity.

Fractional Controllers will oversee

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Cost Comparison: In-House vs.

Outsourced Accounting Staff

How Does the Transition to Outsourced Accounting Work?

Outsourcing your accounting operations can provide significant savings on salaries, benefits, taxes, technology, and training, when compared to hiring an in-house accounting team.

The typical onboarding process for an outsourced accounting partner includes the following steps: •

Initial Review: They assess your books, tech, stack and pain points

Role

In-House Annual Outsourced Cost Cost (plus benefits) (Est.)

•

Cleanup Phase: Fix errors, update coding, rebuild reports

Bookkeeper/ clerk

$55,000

$750 - $1,500 / month

•

Rollout Plan: Set up cadence, dashboards, KPIs

•

Controller

$115,000+

$2,000 - $6,000 / month

Ongoing Support: Weekly check-ins, monthly closes, quarterly reviews

CFO

$175,000+

$5,000 - $10,000 / month

How to Choose the Right Outsourced Accounting Partner

Frequently Asked Questions 1.

Is outsourced accounting secure?

Yes. Reputable providers use secure portals, encrypted software, and limited-access controls. Ask about their protocols.

2.

Will I lose control over my financials?

Not at all. You’ll gain more control—because you’ll understand the financials, in real time.

3.

Construction business owners should look for an outsourced accounting provider with the following qualifications: •

Industry expertise (construction experience a must)

•

Technology compatibility (QuickBooks®, Foundation, Sage, etc.)

•

Clear scope of services and reporting cadence

•

Flexible engagement options (weekly, monthly, etc.)

•

Strong references and confidentiality protocols

Can I keep my bookkeeper if I outsource?

Absolutely. Many firms work alongside your internal team, providing oversight, upgrades, and support.

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4.

How long does it take to get up and running?

Onboarding takes 2–6 weeks, depending on complexity; however, benefits begin almost immediately.

5.

Do I need a fractional controller or just a bookkeeper?

As revenue continues to grow and transactions increase, additional finance experience is needed.

6.

What if I eventually want to build an in-house team again?

That’s fine. Outsourcing doesn’t lock you in. Many contractors outsource during growth, then build inhouse again in the future.

Strengthening Your Business through Outsourced Accounting As the business landscape continues to evolve, the importance of having the right financial expertise cannot be overstated. Whether you’re a small business or a large enterprise, investing in the right financial professionals can make a significant difference in your company’s success.

Outsourcing your accounting operations may give you the clarity, control and confidence you need to grow. Don’t wait until your tax CPA, your bank, or your own gut tells you something’s wrong. You’ve built a strong company. Now may be the right time to support it with a stronger financial foundation through outsourced accounting. BG Mike Clark, CPA, is a consulting manager at H2R CPA. He can be reached at mclark@h2rcpa.com.

IN A WORLD WHERE RESILIENCY IS NEEDED MORE THAN EVER, Who will you trust with your next project?

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www.volpatt.com

#WeAreVolpatt commercial industrial institutional

MANAGEMENT PERSPECTIVE THAT IS NOT WHAT MY CONTRACT SAYS!

A

BY TIMOTHY BERKEBILE, ESQUIRE

well-drafted construction contract is one of the most effective tools in a contractor’s risk management toolbox. A clear, detailed agreement defines the scope of work, payment terms, schedule expectations, and how project risks are allocated.

It provides all parties with greater certainty about what has been promised and what is expected. Yet even the bestdrafted contract does not always mean what it says. Statutory and common law rules can override or reshape contract terms in ways that catch even seasoned professionals off guard.

Understanding how these modifiers affect payment timing, retainage, and risk helps manage exposure.

Consider a typical construction contract negotiation. The parties sign an agreement that clearly sets out the deal. You walk away confident that the contract protects you.

As the project proceeds, you come to learn that the contract does not provide all the protection you thought it did. Provisions that seemed ironclad suddenly give way to unexpected exposure. Issues you believed were settled in negotiation are back on the table, and leverage shifts in ways you did not anticipate.

How does this happen?

be superseded by a less favorable inconsistent term.

Interpretation of internal ambiguity Courts interpret contracts based on the parties’ intent, drawn from the contract’s language. Still, during negotiation, parties sometimes use vague or flexible language to bridge a disagreement and keep the deal moving. That flexibility can come at a cost. If a provision is later found to be ambiguous—meaning it can reasonably be read in more than one way—outside evidence such as prior negotiations, trade practices, and the parties’ course of performance may be used to interpret it. In short, what seemed like a clever compromise in negotiation can later become a costly source of dispute.

Clear drafting remains essential, but every construction contract operates within a broader legal framework that can alter, supplement, or even override what is written on the page.

Construction contracts are interpreted and applied within a broader framework of statutory and common law rules that can supersede or modify the express terms. In some cases, the other party may have a better grasp of these external “contract modifiers” and use that knowledge to their advantage. Understanding how these laws interact with your contract allows you to assess risk more accurately at the outset and avoid costly surprises down the road.

The following examples show how contract modifiers can quietly alter your rights and obligations, changing outcomes that the written agreement alone would not predict.

Internal inconsistencies and order of precedence Even a well-drafted agreement can contradict itself.

Construction contracts are often made up of multiple documents with overlapping terms. This layered structure can easily create conflicts between documents. Most contracts address this by including an “order of precedence” clause that establishes which document controls if terms conflict. If the contract is internally inconsistent, a favorable term may

Exculpatory clauses and conduct of the parties

Exculpatory clauses are contract provisions that limit or eliminate a party’s liability for certain losses—common examples include no-damage-for-delay clauses, site condition disclaimers, and caps on damages. These clauses are enforceable but cannot shield a party from bad faith or willful misconduct.

Courts have refused to enforce such clauses where a contractor or owner obstructs performance, withholds approvals or access, unreasonably alters scope or sequencing, or otherwise acts in bad faith in administering the contract. Even the strongest liability waiver provides no protection when a party’s conduct prevents the other from performing.

Waiver A waiver occurs when a party intentionally gives up a known contractual right, either expressly or by conduct inconsistent with enforcing that right. For example, a party may waive a claim deadline by consistently accepting late performance without objection. To establish an express waiver, the language must be clear and intentional; an implied waiver requires proof that the party knew of the right and chose to forgo it.

Even clauses meant to prevent informal changes, like no-oral modification provisions, can themselves be waived through conduct showing an intent to disregard them. Proving such a waiver requires clear, convincing evidence—a high bar—but it shows that even the strongest contractual protection can be undermined by the parties’ actions during performance.

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Release A release is a contractual provision or agreement in which a party gives up the right to enforce certain obligations or pursue claims—essentially a legal act of relinquishment or forgiveness. Releases frequently appear in payment applications, change orders, and settlement agreements,

often as standard or boilerplate language. Contractors should review every project document carefully to ensure that no claims or entitlements are surrendered—explicitly or by implication—without full understanding and intent. Even routine project paperwork can contain release language that, if overlooked, may result in the unintended loss of valuable rights.

Pay-when-paid clauses

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A pay-when-paid clause is a timing mechanism that ties a subcontractor’s payment to the contractor’s receipt of payment from the owner. Pennsylvania courts distinguish these provisions from pay-if-paid clauses, which clearly and unambiguously make the owner’s payment a condition precedent to the subcontractor’s right to payment. While a strict reading of a pay-when-paid clause might suggest that a subcontractor bears the risk of the owner’s nonpayment, Pennsylvania law says otherwise. Unless the contract unmistakably shifts that risk through express, condition-precedent language, a pay-whenpaid clause merely delays payment for a reasonable period—it does not eliminate the contractor’s ultimate obligation to pay. In other words, even if the owner never pays, the subcontractor must still be paid after a reasonable time has passed.

Statutory contract modifiers Construction contracts operate within the framework of the laws of the state where the project is located. Many jurisdictions impose statutory requirements that supplement—or even override—contract terms.

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In Pennsylvania, two key statutes shape private construction contracts: the Contractor and Subcontractor Payment Act (CASPA) and the Mechanics’ Lien Law, both of which establish non-waivable rights and obligations affecting payment, timing, and security for work performed.

CASPA establishes certain payment rights and protections that cannot be waived. Even if a contract states otherwise, clauses that attempt to limit or eliminate these rights are void and unenforceable against public policy. CASPA mandates prompt payment within specific timeframes, imposes interest at 1% per month on late payments, adds an additional 1% monthly penalty for wrongful withholding, and allows the prevailing party to recover attorney fees. It also requires written notice within 14 days when payment is withheld for cause. In short, contract language that delays, restricts, or eliminates

these statutory rights—such as “pay-if-paid” conditions, no-interest clauses, or blanket waivers—will not withstand legal scrutiny.

The Pennsylvania Mechanics’ Lien Law likewise limits the effectiveness of advance lien waivers, even when they appear clearly in a signed construction contract. Many contracts—especially those drafted by owners or upstream contractors—include language stating that a contractor or subcontractor “waives all lien rights” upon signing.

However, the lien law expressly overrides such provisions, declaring any waiver made before furnishing labor or materials to be void as against public policy, unless a payment bond that meets statutory requirements has been issued, regardless of the express terms of the contract.

construction contract operates within a broader legal framework that can alter, supplement, or even override what is written on the page. Recognizing how statutes and court decisions interact helps identify risks, protect payment rights, and maintain leverage. BG Tim Berkebile is a member of the Construction, Litigation, and Real Estate Groups at McNees Wallace & Nurick LLC. He can be reached at TBerkebile@mcneeslaw.com.

Other states apply similar protections.

In Maryland, for example, the Retainage Law caps the amount of retainage that can be withheld and prohibits highertier contractors from retaining a greater percentage from lower-tier subcontractors than is being withheld from them. Any clause that imposes more onerous retainage terms on subcontractors than those applied to the contractor is invalid. Additional restrictions apply when a contractor has furnished 100 percent payment and performance security, further limiting the amount of retainage that may be withheld.

In Ohio, the Fairness in Construction Contracting Act renders specific contract provisions void as against public policy. The act invalidates clauses that waive a party’s rights under payment or performance bonds, “no-damage-for-delay” provisions when delays result from the owner’s acts or omissions, and terms that make acceptance of final payment a waiver of unresolved claims. It also voids clauses requiring disputes on Ohio projects to be governed by another state’s law or litigated in another jurisdiction. In short, the statute ensures that Ohio construction contracts uphold principles of timely payment, equitable dispute resolution, and fair allocation of risk.

The key takeaways The examples discussed here are not exhaustive—statutory and common law modifiers vary widely by state. It is not enough to simply negotiate the language you want; you must also understand how that language will function under the laws governing the project.

Clear drafting remains essential, but every

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BEST PRACTICE WHAT’S ON YOUR NOGGIN? THE CONSTRUCTION INDUSTRY’S MOVE FROM HARD HATS TO HELMETS

H

BY BOB MCCALL

ow we protect our heads from injury in sports, work, and recreational pursuits has evolved significantly over the years. Imagine playing football with a leather helmet! You might recall hockey players, even goalies, playing without helmets. Now imagine allowing your kids to ride their bikes or scooters without wearing a helmet. Seems crazy, doesn’t it? While the construction industry has been slow to adopt the added protection of safety helmets, they are becoming increasingly common on our projects.

Historical Evolution of Head Protection The hard hat has a storied history in our country, including in Pittsburgh. During World War I, U.S. soldiers were protected from bullets, shrapnel, and flying debris by large, heavy helmets. When Edward Bullard returned from his post with the U.S. Army’s cavalry in 1919, he brought the idea of head protection with him. This led to the creation of the first hard hat: the Hard-Boiled Hat. Bullard’s hard hat was quickly adopted by the mining industry, and the construction industry was not far behind. In the early 1930s, the Hoover Dam project became the first to require the use of hard hats.

In 1933, the Golden Gate Bridge project followed suit to protect workers from falling rivets.

Pittsburgh’s Role in Hard Hat Development During this period, Pittsburgh made its mark in the adoption of head protection. MSA – The Safety Company created their iconic Skull Guard hard hat in 1930, which was quickly adopted by American Bridge for use by their ironworkers on their projects. In 1962, MSA introduced the V-Guard hard hat, made of a state-of-the-art high-density polyethylene shell.

Thanks to its comfort, quality, and durability, the V-Guard

became the most widely used hard hat in construction.

Although safety improvements have been made to materials and suspensions since the 1930s, the appearance of hard hats has changed little. Nor has worker preference shifted significantly. Many ironworkers remain fiercely loyal to their Skull Guards, a testament to their enduring design.

Modern Safety Concerns and Helmet Adoption In recent years, the construction industry has begun to recognize that traditional hard hats may not offer the best possible protection. In 2016, the National Institute for Occupational Safety and Health (NIOSH) published a report revealing that more than 2,200 construction workers died from traumatic brain injuries (TBIs) between 2003 and 2010.

TBIs accounted for 25 percent of all construction fatalities and many life-altering injuries. These injuries are often linked to the use of traditional Type I hard hats, which, according to ANSI standards, are designed to reduce force from impacts only to the top of the head. They typically lack chin straps, making them likely to fall off during a fall—before the worker’s head strikes a surface. As a result, the industry has seen a shift toward helmets, or ANSI Type II head protection.

Type II helmets are designed to reduce force from impacts to the front, back, sides, and top of the head. Their built-in chin straps help keep the helmet securely on the worker’s head during a fall.

Helmet vs. Hard Hat Comparison A recent study by Virginia Tech revealed that Type II safety helmets provide superior protection compared to traditional Type I hard hats. Helmets from Master Builders’ Association members—MSA, Milwaukee Tool, Dewalt—as well as non-members such as Kask, Studson, and PIP, earned Virginia Tech’s 5-Star rating. In contrast, the average rating for Type I hard hats was just 2.25 stars.

Future Outlook One must wonder why the construction industry continues to accept the level of protection provided by hard hats. Perhaps it is tradition, or because OSHA deems them acceptable. While we have seen changes in head protection across many aspects of life, the construction industry is still evaluating the protective benefits offered by helmets. BG Bob McCall is director of safety for the Master Builders’ Association of Western PA. He can be reached at bob.mccall@ mbawpa.org.

Traditional Type I hard hats, like the white hat on the left and the center, have been improved to provide greater protection from head injuries. Photo by Master Builders’ Association of Western PA.

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From extensive facilities focused on tackling some of the world’s most challenging issues to intricate interior projects where the minor details are the most crucial, Turner Pittsburgh has the local expertise to complete the region’s most complex projects, with the national resources to enhance the services we provide to our clients.

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INDUSTRY & COMMUNITY NEWS

The March of Dimes held it annual Transportation Building and Construction Awards luncheon on September 30. The Roberto Clemente Bridge restoration was selected as Transportation Project of the Year. Pictured from left are Mosites Construction’s Stephen Shanley, Jeff Ronosky, Steve Mosites III, Mike Burdelsky, and Jason Molinaro, and Matthew Steel and Stephen Shadle with CDR Maguire. Photo by Archie Carpenter Photography.

ALCOSAN’s North End Plant Expansion was selected as Infrastructure Project of the Year. Pictured (sitting from left to right) are Mascaro’s Josh Reynolds, Jon Fisher, Megan Walzer, and Rick Bowers. Standing (left to right) are Nik Donlin and Jake Walker from Mascaro, ALCOSAN’s Jeff Argyros and Kimberly Kennedy, Mascaro’s Bob Breisinger, and Tony Sands. Photo by Archie Carpenter Photography.

Rocky Bleier Construction Group’s Jim Kephart was honored by the March of Dimes as Construction Champion of the Year. Pictured from left are Bob McCall from the Master Builders’ Association, Kephart, the MBA’s Dave Daquelente, and Carl Heinlein from American Contractors Insurance Group. Photo by Archie Carpenter Photography.

Members of the March of Dimes Transportation, Building and Construction Awards Luncheon Committee for 2025 included (seated from left) Ann Sekeley from McKim & Creed, Greg Heddaeus from Carl Walker Construction, Amity McClelland from Hasenstab Architects, and RETTEW’s Paul Ceriani. (Standing from left) Steven Savich from Michael Baker, Matt Sickles from GAI Consulting, UPMC’s Roger Altmeyer, Ed Roethlein from Whitman Requardt, Gilbane’s James Dudt, Gannett Fleming’s Tom Bice, UPMC’s Kelly Noel, Mike Schessler, JLL’s Nick Francic, and Pitt’s Jaime Cerelli.

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ATTORNEYS AT LAW

More than a dozen Mascaro Construction employees volunteered at the 2025 DVE Rocks Children’s Radiothon.

Mascaro is a sponsor of the Radiothon, which raised a record amount of over $1.2 million to support UPMC Children’s Hospital of Pittsburgh.

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Members of the Turner Construction team spent the morning volunteering at the Greater Pittsburgh Community Food Bank, where they helped pack approximately 960 boxes to assist local seniors. Pictured (left to right) are Ryan Palladino, Nia Sankofa, Angeline Mozer, Kelly Hanley, Jillian Foster, Marina Dumas, and Riccardy Volcy.

(From left) Mike Yohe, Anthony Martini, Zak Roberts, and Geoff Albert from A. Martini & Co. at the MBA Golf Outing at Laurel Valley Country Club on September 8.

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(From left) Mike Norcutt from Dick Building Co., Mark Edgar from Mosites, Gilbane’s Abby Krehl, and Adam Ramsey from JLJI.

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(From left) PJ Dick’s Frank Babik, Eric Pascucci, Bob Salvatore, and Mike Roarty.

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(From left) Joe Wardman from Burchick Construction, Tyler Noland and Jamey Noland from PenTrust Realty Advisors, and Burchick’s Dave Meuschke.

(From left) Mascaro Construction’s Ernie Gigliotti, Bill Greb, Michael Mascaro, and John Hopper.

(From left) Neal Rivers, Rich Yohe, John Lane, and Brooke Waterkotte from Easley and Rivers.

MIS, strives to offer specialty IT services for businesses with high telecommunication, data and security needs. We are able to meet all of your IT needs including all other low voltage applications that are migrating to the Network.

(From left) McKamish’s Bob Ward, Neil Menzies, Ron Bellovich, and John Jordan.

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Mascaro’s Bill Keith, hit the links as part of the Project BEST foursome. Pictured from left to right are Bill Keith, Doug Giffin from IBEW 141, Shawn Zoladz of Karras Painting, and Nathan Butts, executive director of Project BEST.

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AWARDS & CONTRACTS BNY selected PJ Dick to manage construction of 30,900 square feet of renovations at the CSC Building, including a new fitness center.

H & K Equipment selected Massaro Corporation as general contractor to build its new 25,000 square foot headquarters in Findlay Township.

PJ Dick was selected to manage construction of upgrades to the Clemente Museum, which includes construction of a new elevator, rooftop deck, and HVAC replacement.

City of Pittsburgh awarded the general contract for the $2 million Saw Mill Run Salt Storage Facility to Caliber Contracting Services. Architectural Innovations is the architect.

PJ Dick was selected for the second phase of upgrades to the sprinkler system at Laurel Valley Country Club.

The Department of Veterans Affairs (VA) selected PJ Dick’s West Chester office to construct an addition and new data rooms for a campus-wide IT infrastructure upgrade project at the VA center in Wilmington, DE. Gilbane Building Company was awarded the Bon Secours Mercy Health St. Joseph Warren Hospital Phase 1 Infrastructure project in Warren, Oh. The project involves replacing the main exterior entrance to the dialysis entrance of the hospital, while maintaining the location’s accessibility to visitors and staff.

Turner Construction was recently selected to complete the Peirce Atrium project for the Kamin Science Center. In partnership with R3A and FutureForms, this project includes a renovation of the public gallery space and installation of a unique new exhibit for the museum that combines art and science.

Allegheny Construction Group was awarded the general contract for the wayfinding and signage renovations package at Pittsburgh International Airport. The architect for the $4 million project is Michael Baker International.

Allegheny County Airport Authority awarded a contract to Mosites Construction for the general construction package of the $6 million Airside Concourse Renovations Phase 1 at Pittsburgh International Airport. Mosites was also awarded the contract for the Landside Structures Improvements.

TEDCO Construction is the general contractor for medical office renovations at the Allegheny Health Network North Fayette Wellness Pavilion in North Fayette Township.

UPMC Health Plan awarded a contract to TEDCO Construction for the 21st floor renovations at 600 Grant Street. RM Creative is the architect.

DiMarco Construction was the successful bidder on the $2.6 million Warren Manor Exterior Renovations project for the Housing Authority of Armstrong County. The architect is Canzian Johnston & Associates.

Oakmont Water Authority awarded a $3.5 million contract to DiMarco Construction for its Sodium Hypochlorite Building Addition. KLH Engineers is the engineer for the 7,400 square foot expansion.

GEM Building Co., and E&G Development company, was awarded the Holy Sepulcher Church Entrance Renovations in Middlesex Township, Butler County. The architect is Creative Edge Architecture.

UPMC selected Landau Building Company as general contractor for the replacement of a multimillion-dollar radiation oncology machine at UPMC Hillman Cancer Center at UPMC St. Margaret. The linear accelerator (LINAC) Replacement project is a 2,000 square foot phased renovation, which includes the removal and installation of a new LINAC and renovation of adjacent control room and office spaces, all located on the first floor of UPMC St. Margaret. The scope of work encompasses demolition, mechanical and electrical upgrades, structural modifications, shielding, fire sprinkler work, and new finishes. DesignGroup is the architect.

Marks-Landau Construction is serving as the construction manager for the renovation of the Spine Center’s first floor at WVU Medicine’s United Hospital Center. Designed by Stantec, this 1,550 square foot project involves a phased renovation that includes converting administrative areas into new exam rooms and transforming an existing waiting room into a new X-ray room adjacent to the current imaging suite.

The project is being executed in multiple phases to minimize disruption to ongoing Spine Center operations.

WVU Medicine selected Dick Building Co. as construction manager for the renovations to the first floor at The Fountainhead at Southpointe for an urgent care center. The architect for the $8 million renovation is Smith Group.

AIMS Construction in the construction manager for $1.2 million Carnegie Mellon University Hammerschlag Hall 3100 Wing HVAC modernization.

Allegheny Health Network selected AIMS Construction as general contractor for the Allegheny General Hospital pharmacy robot. The Design Group is the architect.

AIMS Construction is the construction manager for the $4.2 million UPMC Passavant sprinkler upgrade. The project was designed by FMRW Engineers and RM Creative.

AIMS Construction is the general contractor for $1.5 million finish upgrades at the UPMC Outpatient Center at 1300 Oxford Drive in Bethel Park. The architect is Perkins Eastman.

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A. Martini & Co. was awarded the tenant fit out for the law firm of Stevens & Lee on the 16th floor of One PPG Place. This 7,400 square foot renovation includes offices, conference rooms, a kitchenette, open workspaces, and reception area. Indovina Associates Architects is the design firm.

­

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In Greensburg, PA, Dick’s Sporting Goods selected Rycon as the construction manager for a 95,000 square foot renovation to transform an existing Sears into a House of Sport.

Duquesne University chose Rycon as the general contractor to renovate the Civil Engineering Lab inside Fisher Hall.

Rycon was selected as the general contractor to renovate two Dick’s Sporting Goods locations in Kingston, NY and Union, NJ. Rycon is renovating a 3,500 square foot office space for Centene Corporation within Riverfront East, part of the 3 Crossings campus in Pittsburgh’s Strip District.

Rycon will soon begin site work for Echo Realty at Unity Township in Latrobe, PA, including regrading, utility prep, and a cross-driveway for lot access.

Massaro Corporation was selected as general contractor for Carlow University’s $1.3 million Nursing Simulation Laboratory renovations. The architect is Hasenstab Architects.

Plum School Board awarded Massaro Corporation the $12.5 million general contract on its $19.6 million renovation to OBlock Elementary School. The architect is HDG Architects.

Landau Building Co. is the general contractor for UPMC Children’s Hospital 9th Floor Pharmacy Upgrade.

DesignGroup is the architect.

A. Martini & Co. was awarded the contract for the tenant improvements for Langan Engineering at One PPG Place.

The project involves renovations to 6,000 square feet on the 19th floor, including open workspaces, offices, conference rooms, and kitchenette. The architect is Indovina Associates Architects.

Clearfield Municipal Authority awarded G.M. McCrossin the general and electrical contracts for its Montgomery Run Water Treatment Facilities in Pike Township, Clearfield County. The engineer for the $22.8 million improvements is Gwin Dobson & Foreman, Inc. GEM Building, an E&G Development company, was the successful general contractor on Butler Transit Authority’s $4.2 million new bus washing facility in Butler Township, PA. The project was designed by Johnson Mirmiran & Thompson.

FACES & NEW PLACES Jendoco Construction Corporation is pleased to welcome Casey Mrazik as project manager. Casey has a Bachelor of Science and Master of Engineering in Civil Engineering from Penn State University.

Higley Construction announced that Jason Scheible was named the new regional director of its Pittsburgh office. Scheible is a 2001 graduate of Penn State University with a B.S. in Civil Engineering, Structural Design and Construction Engineering Technology.

Michael Larson-Edwards joined Massaro Corporation as vice president of business development. Larson-Edwards is a 2008 graduate of University of Pittsburgh with a B.S. in Civil Engineering.

Superintendents Kevin Brady and Bob Burns joined PJ Dick’s West Chester office.

Evan Connelly joins PJ Dick as an assistant project manager at the WVU Medicine Ruby Hospital renovation project.

Dominick Davido joined Gilbane Building Company as a project manager. He is a graduate of Slippery Rock University and a member of the Master Builders’ Association Young Constructors Committee.

A. Martini & Co. welcomed Geoffrey Albert as project manager.

He previously worked on government contracts and large multifamily projects in Colorado Springs, CO. A. Martini & Co. welcomed Jason DePalma in the role of estimator. He has 15 years’ experience in the region working on a variety of new and renovation projects.

A. Martini & Co. welcomed Sam Collins as assistant controller.

He earned a master’s degree in business from Marshall University.

A. Martini & Co welcomes Erin Spinola as a Staff Accountant.

Spinola has three years’ experience in the local construction industry. She has a bachelor’s degree in accounting from Indiana University of Pennsylvania.

Shannon Kline joined Mascaro Construction on September 8 as the technology analyst.

Also on September 8, Monica Senger joined Mascaro’s Marketing Department as the marketing administrator.

Turner Pittsburgh welcomed Lizzy Fillman, a recent graduate of the University of Pittsburgh. She will be working with Turner’s New York North office for her first assignment as a field engineer.

Melissa Bonelli recently joined Landau Building Company as a project manager, bringing over 13 years of experience in the construction industry.

Jeff Braum was promoted to vice president of construction at Dick Building Co. Braum had previously been director of operations.

Mike Norcutt was promoted to vice president of preconstruction at Dick Building Co. Norcutt had previously been chief estimator.

He is a graduate of California University of PA. Rycon welcomed Saint Vincent College alumnus, Vincent Pysnik, as an estimator.

Rycon’s Corporate Human Resources Department welcomed back West Virginia University alumna, Allison Earley, as an organizational development specialist.

www.treconstruction.net 724.650.5544

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Commercial Interior Construction, Exterior Wall Systems, and Prefabrication

PITTSBURGH 412-787-5800 PHILADELPHIA 215-492-5800

www.wyattinc.com

66 www.mbawpa.org

MBA MEMBERSHIP 2025 MBA OFFICERS President Michael R. Mascaro Mascaro Construction Company, LP Vice President and Treasurer Alexander G. Dick Dick Building Company Secretary/Executive Director David D. Daquelente

2025 MBA BOARD OF DIRECTORS John P. Busse F.J. Busse Company, Inc. James T. Frantz TEDCO Construction Corporation Michael Kuhn Jendoco Construction Corporation Jennifer P. Landau Landau Building Company Anthony F. Martini A. Martini & Co. Steven M. Massaro Massaro Corporation David P. Meuschke, P.E. Burchick Construction Company, Inc. M. Dean Mosites Mosites Construction Company Jake Ploeger PJ Dick Incorporated Jodi L. Rennie Turner Construction Company John Sabatos Rycon Construction, Inc. Raymond A. Volpatt, Jr., P.E., Past President Volpatt Construction Corporation Neal Rivers (MICA President) Easley & Rivers, Inc.

GENERAL CONTRACTORS A. Martini & Co. AIMS Construction Allegheny Construction Group, Inc. Burchick Construction Company, Inc. Caliber Contracting Services, Inc. Carl Walker Construction, Inc. CH&D Enterprises, Inc. CPS Construction Group, Inc. Dick Building Company, LLC DiMarco Construction Co., Inc. E&G Development, Inc. Elwood Construction Corporation F.J. Busse Company, Inc. Facility Support Services, LLC FMS Construction Company Fred L. Burns, Inc. Gilbane Building Company Higley Construction Independence Excavating, Inc. Jendoco Construction Corporation Kokosing Industrial Incorporated Landau Building Company Mascaro Construction Company, LP Massaro Corporation McCrossin Menard USA Mosites Construction Company Nicholson Construction Company PJ Dick Incorporated Rocky Bleier Construction Group Rycon Construction, Inc. Shannon Construction Company Stevens Engineers & Constructors, Inc. TEDCO Construction Corporation Turner Construction Company Uhl Construction Company, Inc. Volpatt Construction Corporation

SPECIALTY CONTRACTORS

2bn contracting A Crane Rental, LLC A. Folino Construction, Inc. A.J. Vater & Company, Inc. Abate Irwin, Inc. ABMECH Acquisitions, LLC ACE Lightning Protection, Inc. Advantage Steel & Construction, LLC All Crane Rental of Pennsylvania, LLC Alliance Drywall Interiors, Inc. Amelie Construction & Supply, LLC Amthor Steel, Inc. BrandSafway Industries LLC Brayman Construction Corporation Bristol Environmental, Inc. Bruce & Merrilees Electric Company Bryan Construction, Inc. Build with MD Burke & Company, LLC dba S.P. McCarl & Company Burnham Industrial Contractors, Inc. Buzzelli Group LLC Casework Installation Company, LLC CaseWorks Inc. Centerpoint Painting Systems Century Steel Erectors Co., LP Clista Electric, Inc. Cost Company Costa Contracting, Inc. Cuddy Roofing Company, Inc. Dagostino Electronic Services D-M Products, Inc. Dom DeMarco Construction, Inc. Donley’s Concrete Group Douglass Pile Company, Inc. E2 Landscape & Construction Easley & Rivers, Inc. EMCOR Services Scalise Industries Fay, S&B USA Construction Ferry Electric Company First American Industries, Inc. Flooring Contractors of Pittsburgh Franco Associates G. Kidd Inc. Gaven Industries, Inc. Geo V Hamilton, Inc. Giffin Interior & Fixture, Inc. Gregori Construction Inc. Gumpher, Inc. Gunning, Inc. Hanlon Electric Company Harris Masonry, Inc. Hatzel & Buehler, Inc. HOFF Enterprises, Inc. Howard Concrete Pumping, Inc. Hunt Valley Environmental, LLC J.J. Morris & Sons, Inc. JLJI Enterprises, Inc. K & I Sheet Metal, Inc. Kalkreuth Roofing & Sheet Metal, Inc. KELLER North America Keystone Electrical Systems, Inc. Kirby Electric, Inc. Kusler Masonry, Inc. L & E Concrete Pumping Inc. Lanco Electric, Inc. Lighthouse Electric Company, Inc. Lisanti Painting Company Manheim Dellovade LLC Marsa, Inc. Massaro Industries, Inc. Master Woodcraft Corporation Matcon Diamond, Inc. Maxim Crane Works, LP McCrossin Foundations, LLC McKamish, Inc. Mele & Mele & Sons, Inc. Mohawk Construction & Supply Co., Inc Next 150 Construction LLC Noralco Corporation O. Z. Enterprises, LLC Paramount Flooring Associates, Inc. Pennsylvania Roofing Systems, Inc. Phoenix Roofing, Inc. Pittsburgh Interior Systems, Inc. Precision Environmental Company Pullman SST RAM Acoustical Corporation Redstone Flooring, LLC Renick Brothers Construction Co. Richard Goettle, Inc.

Right Electric, Inc. Ruthrauff | Sauer, LLC Saint’s Painting Company, Inc. Sargent Electric Company Schindler Elevator Schlaegle Design Build Associates, Inc. Schnabel Foundation Company Solid Platforms, Inc. Specified Systems, Inc. Spectrum Environmental, Inc. SSM Industries, Inc. Steel City Scaffolding of Pittsburgh, LLC Swank Construction Company, LLC T.D. Patrinos Painting & Contracting Company Tarax Service Systems, Inc. TRE Construction Triple 3 Construction, LLC Tri-State Flooring, Inc. W.G. Tomko, Inc. W.O. Grubb Steel Erection, Inc. Wayne Crouse, Inc. Wright Commercial Floors Wyatt Incorporated

AFFILIATE MEMBERS

4CTechnologies 84 Lumber Company A. L. Harding & Company A.R. Chambers and Son, Inc. ADMAR Construction Equipment and Supply AEC Online Store African American Chamber of Commerce of Western PA Allegheny County Airport Authority Pittsburgh International Airport Alliant American Contractors Insurance Group American Global American Producers Supply Company, Inc. AmeriServ Wealth & Capital Management Aon Atlantic Engineering Services Atlas Wholesale Co., Inc. AUROS Group Babst Calland Baker Tilly Virchow Krause, LLP BDO USA, P.A. Beth-Hanover Supply Co., Inc. Black Diamond Equipment Rental Bowles Rice Bronder & Company, P.C. Building Envelope Consultants and Scientists, LLC Building Point Ohio Valley Burns & Scalo Real Estate Services, Inc. Burns White, LLC CAD Construct LLC Cadnetics, Inc. Case | Sabatini Chartwell Investment Partners Chubb Group of Insurance Companies Civil & Environmental Consultants, Inc. Clark Hill PLC Cleveland Brothers Equipment Co., Inc. CliftonLarsonAllen LLP Cohen and Company Cohen Seglias Pallas Greenhall & Furman PC Computer Fellows Inc. Cozen O’Connor CTR Payroll & HR DesignGroup Desmone Architects Dickie, McCamey & Chilcote, P.C. Dingess, Foster, Luciana, Davidson & Chleboski LLP Dollar Bank DRAW Collective Architecture Eckert Seamans Cherin & Mellott ECS Mid Atlantic, LLC EPIC Insurance Brokers & Consultants EquipmentShare Fahringer, McCarty, Grey, Inc. Falk-PLI Engineering and Surveying FASTSIGNS of Pittsburgh FDR Safety, LLC FieldForce Equipment Sales & Rentals, LLC First National Insurance Agency Fisher Phillips GM Equipment Corp.

Graystone Consulting Pittsburgh H2R CPA Henderson Brothers, Inc.

Henry Rossi & Co., LLP HHSDR Architects/Engineers Highstreet Insurance Partners Hillis Carnes Engineering Associates, Inc. HUB International Huth Technologies LLC IMA Corp Interior Supply, Inc. Intertek - PSI J.S. Held JLL K&L Gates LLP Karpinski Engineering Kehm Oil Company L & W Supply LaFace & McGovern Associates, Inc. Langan Engineering & Environmental Services Liberty Insurance Agency Liberty Mutual Surety Lytle EAP Partners/Lytle Testing Services, Inc. Maiello, Brungo & Maiello MarinoWare Marsh Marthinsen & Salvitti Insurance Group McKim & Creed, Inc. McNees Wallace & Nurick LLC Meyer, Unkovic & Scott LLP Meyers Company Michael Baker International Michael Brothers Companies Milwaukee Tool Mobile Air, Inc. Mobile Medical Corporation Monster Smash, LLC Morgan, Lewis & Bockius LLP MSA Safety MSW Supply Multivista NCI - Nursing Corps Ohio Valley Drywall Supply OnPoint Industrial Services OVD Insurance PenTrust Real Estate Advisory Services, Inc. PGH Networks Philadelphia Insurance Companies Pietragallo Gordon Alfano Bosick & Raspanti, LLP Pittsburgh Mobile Concrete, Inc. ProShare Services LLC R.J. Bridges Corporation Reed Building Supply Repco II Republic Services, Inc. RETTEW Associates RJR Safety Inc. Roofing & Exterior Products Services Saxton & Stump Schneider Downs & Company, Inc. Scotti Law Group Security 101 Pittsburgh Seubert & Associates, Inc. Solutions 21 Sprague Energy Stanley Black & Decker Stephany Associates, Inc. Steptoe & Johnson, PLLC STI, Inc. Suburban Propane Sunbelt Rentals, Inc. Susanin, Widman & Brennan, PC The Gateway Engineers, Inc. The Reschini Group / Evergreen Insurance The Sherwin-Williams Co. T-Mobile Tom Brown, Inc. Travelers Bond & Financial Products Tri-State Reprographics/Signarama Pittsburgh Triangle Fastener Corporation Triumph Modular Tucker Arensberg, P.C. UBS Financial Services, Inc. Unified Door & Hardware United Rentals UPMC Work Partners USI Insurance Services W. R. Meadows of Pennsylvania White Cap WNA Engineering, Inc. WTW - Willis Towers Watson Zurich NA Construction

BreakingGround November/December 2025

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Gennaro J. DiBello, CPA gdibello@schneiderdowns.com Ted M. Pettko, CPA tpettko@schneiderdowns.com

68 www.mbawpa.org

CLOSING OUT

BY COMMISSIONER SCOTT DUNN

Fayette County: Building on Strength, Growing Toward the Future Fayette County, Pennsylvania, is a community defined by resilience, innovation, and possibility. Nestled at the gateway of the Laurel Highlands, our county is known for its natural beauty, rich history, and hardworking people. Today, Fayette County is also becoming known for something more: the determination to create a stronger economy, a more vibrant quality of life, and a brighter future for all who call this place home.

A Legacy of Hard Work and Progress Fayette County has always been shaped by industry. From the coal and steel era that fueled America’s growth to the entrepreneurial spirit that continues to thrive in our small businesses, industry has left its mark on our landscape and our people. While the global economy has shifted, Fayette County is not standing still. Instead, we are adapting and seizing opportunities in tourism, advanced manufacturing, healthcare, agriculture, and energy to fuel a new chapter of growth.

The numbers tell a promising story. Visitor spending in the Laurel Highlands region, where Fayette is a cornerstone, reached more than $1.6 billion in 2023, a significant increase from prior years. This surge reflects both the draw of our outdoor recreation assets such as Ohiopyle State Park and the Great Allegheny Passage, and the collaborative efforts of local organizations to promote our region. On the workforce side, schools, training programs, and employers are working together to prepare students and adult learners for high-demand jobs in healthcare, trades, and technology.

Investing in People and Places At the heart of Fayette County’s progress is a focus on people.

Education and workforce development efforts are connecting classrooms to careers, helping students gain skills in engineering, entrepreneurship, and the trades. These initiatives prepare young people for the jobs of tomorrow and give them reasons to stay, build their futures, and raise their families here at home.

Community investments are also strengthening the quality of life that makes Fayette County an attractive place to live and work.

Trails are expanding, new businesses are opening, and cultural projects from the arts to historic preservation are bringing energy to our towns. Infrastructure improvements, such as the Fayette County Infrastructure Bank, are giving municipalities the resources they need to improve roads, water systems, and broadband. These essentials form the backbone of growth in both population and industry.

Another important step is our work with an experienced consultant on a visioning strategy for the county. This long-term effort is designed to help us think boldly about the future, identify challenges, and set a shared course for progress. It is about creating a clear path that will carry Fayette County into the next generation.

Agriculture as a Cornerstone Agriculture has always been a vital part of Fayette County’s identity, and it remains one of our strongest industries. More than 1,200 farms cover over 160,000 acres of farmland across the county, producing everything from dairy and beef to apples,

pumpkins, and vegetables. Together, these farms contribute tens of millions of dollars annually to the local economy.

Local farmers’ markets and farm-to-table businesses connect producers directly to residents and visitors, supporting both health and community. Agritourism is also on the rise, with festivals, farm stays, and pick-your-own experiences drawing families to our rural areas and strengthening the bond between agriculture and everyday life. Fayette’s farmland is not only an economic driver but also a cultural anchor, preserving traditions while embracing new technologies and markets. By supporting agriculture alongside other industries, Fayette County ensures a diverse and resilient economy.

Opportunities Ahead We know that challenges remain. Like many rural counties, Fayette is working to grow its population, modernize housing options, and expand access to healthcare and childcare. What makes us unique is that we have the ingredients necessary for success and the will to put them to use. Our natural resources, proximity to Pittsburgh and Morgantown, and affordability give us a competitive edge. Our people, entrepreneurial, skilled, and community-minded, are our greatest assets. And our collaborative spirit means that government, businesses, nonprofits, and residents are working together instead of apart.

Emerging opportunities are also on the horizon. Energy resources position Fayette County to play a role in powering the future, including through innovative projects such as microgrids and data centers. Tourism continues to diversify beyond outdoor recreation to include heritage, arts, and cultural tourism. New housing studies are helping us chart a path to meet the needs of young families, professionals, and retirees who want to call Fayette home.

A Community on the Rise Across Fayette County, optimism is taking root. You can see it in the volunteers who give thousands of hours of service to local nonprofits. You can feel it in the classrooms where students design projects or pitch business ideas. You can measure it in the rising visitor numbers, the investment in new infrastructure, and the momentum around America’s 250th anniversary, which we will proudly celebrate in 2026.

We acknowledge that our work is not finished. But Fayette County has never been afraid of hard work. We are taking bold steps, building partnerships, and making investments that will ensure our county is not only stronger today but positioned for sustainable growth tomorrow.

Fayette County’s story is still being written, and it is a story of progress. Together, we are proving that with determination, collaboration, and vision, we can make our county better for our businesses, for our families, and for generations to come. The future is bright in Fayette County, and we invite everyone to be part of building it.

Scott Dunn is chairman of the Fayette County Commissioners. He can be reached at sdunn@fayettepa.org.

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