Meet the 2024 NJLICA award winners, learn about employee stock ownership plans, and read how you can build a better insurance program.
In a previous lifetime, I coached high school wrestling in northern New Jersey for 20 years. It certainly was a different time — cutting out result clippings from the newspaper so I could keep tabs on our upcoming opponents and their individual wrestlers; endlessly taking notes on our matches as well as others; doing anything to try and get an edge on our opponent. Specifically, I scouted upcoming opponents by going to their gym and watching their match in person.
Fast forward a lifetime — actually my son, Kurt’s, lifetime. Kurt is currently a high school wrestling coach in Bergen County. He served as the assistant coach for about 10 years and then became the head coach four years ago. Proudly states Dad, “Kurt has built a great wrestling program in four short years.”
Kurt and I have had countless wrestling conversations throughout the years. He has seen me painstakingly cut out results from the newspaper. He has sat matside with me and in the bleachers watching, wondering, and probably being bored to tears.
with him first, took notes, and presented them to Kurt. He read through them, thanked me and really did not say much. Fast forward to the State Sectionals in a wild back and forth match, and Kurt leaves the bench, rushes over to me, and says, “Dad, you have seen the next two kids? Which one is better?” Ah ha! The computer does not have all the answers!
In year three, there was a little more formality to the scouting. Kurt was clearly engaged in the process. This, being year four, Kurt actually had a list of opponents that he wanted me to see in person prior to his team wrestling them. He/we had come full circle as I was on Track Wrestling all the time taking advantage of that technology, and Kurt saw the advantage of being in the moment and benefitting from the in-person experience.
When he became head coach four years ago, I spoke to him about keeping a “results bible” as I used to call it. He laughed at me, and then gave this gray-haired father an education on the technology that exists today. With the click of a button, you can now instantly retrieve the wrestling results of any wrestler in the state — win or lose, the weight they wrestled, who their opponent was, the opponents match by match record, and much more instantly! Pretty cool stuff. “And,” Kurt said, “almost everyone’s matches are streamed so no more sitting in the gym taking notes on upcoming opponents. It’s right there on the computer or in the cloud.” I still have not figured that one out.
So, in Kurt’s first year, I really was just a supporting father. I asked him if he wanted me to scout. “Not necessary, Dad. I can see everything I need to see in Track Wrestling and on the matches being streamed.” Okay, I am with you, but the computer does not tell me a couple of things: what is the conditioning of the kid? Does he fade as the match goes on? He won 7-3, but how did he score? Was he good on his feet or on the mat? What was the energy or lack thereof of the team on the bench?
So, in year two, I went to scout a couple of upcoming opponents in person without sharing
So, why am I sharing this with you?
We live in a technology world and profession. The cell phone, tablet, email, and Zoom are all at our fingertips. I think all of us old guys say many times over, “What did we ever do before we had a cell phone?” I ask myself that all the time.
But deep down, I know what we did. We met in person.
We looked the prospect, business associate, lead, employee, or employer in the eye, shook their hand, and had a face-to-face conversation. We built a relationship based on that gut feeling, that mutual trust, and came away with that feeling of, “I like him, he’s a good guy.”
No head buried in a cell phone or computer screen. Just face to face, sharing of problems, brainstorming solutions, and good quality conversation.
I am inviting you to do just that at our next meeting on April 9 at Foley Caterpillar, as well as all our networking and social events. We always have food, we will have some education, but most of all, we will have industry professionals getting to know each other better, making quality contacts, engaging with each other, helping each other in business. Believe me, it’s worth the investment of time.
Old school, baby. Old school! Old school, Kurt.
Buddy Freund Executive Director, NJLICA
NJLICA BOARD OF DIRECTORS
Dennis Mikula, Jr., President Mikula Contracting, Inc.
Mark Krutis, Vice President Tom Krutis Excavating, Inc.
William J. Esposito, Historian Espo's Tree and Crane Service
Frank C. Del Guercio Tilcon NY
Ron Garofalo
DAG Mobile Aggregate Recycling, Inc.
Warren Gonzalez Foley, Inc.
Shelly Hewson Hewson Landscape, Inc.
Frank Horan Groff Tractor Mid Atlantic, LLC
Bob Manis North American Aggregates
Joe Mayers Septic Experts, LLC
John Rothberg L.N. Rothberg & Son
Dave Vander Groef Wantage Excavating Co., Inc.
Buddy Freund, Executive Director
COVER PHOTO BY JONNY CASPARI, UNSPLASH; PHOTO
ESOPs FOR CONTRACTORS: WHY IT'S A VIABLE OPTION
Throughout the lifecycle of your construction business, there will be many obstacles. One of the most challenging obstacles in today’s environment is succession. Due to the increase in value and borrowing rates, it has been increasingly more difficult for today’s construction business owners to plan and execute a succession plan.
Succession plans typically involve selling, gifting, or a combination of both to a family member, selling to a larger company, competitor, or a strategic private equity investor. These options have significant challenges, including finding the right buyer, negotiating fair value, and preserving company culture. Employee Stock Ownership Plans (ESOPs) offer a compelling alternative that addresses these challenges while providing unique benefits for stakeholders.
What is an ESOP?
An ESOP is a defined contribution plan, akin to a profit-sharing plan or 401(k) plan, established under the Employee Retirement Income Security Act of 1974 (ERISA). Like profit-sharing or 401(k) plan participants, each ESOP participant has an account subject to vesting and other requirements as dictated by the plan document. Unlike 401(k) and profit-sharing plans, which require diversified investments of plan assets, an ESOP is invested primarily in employer securities.
Benefits of an ESOP
BY GRASSI ADVISORS & ACCOUNTANTS
to give the selling owner equity-like returns on a portion of the seller financing through warrants. Without making tax distributions, a corporation can pay down the debt used for the ESOP transaction more quickly and use the tax-free cash flow to invest in the business. Such actions, in turn, enhance the value of the warrants held by the selling business owner.
In today’s challenging labor market, employee ownership provides a compelling recruitment and retention tool. Employee owners build substantially higher retirement savings compared to traditional employment models. The structure preserves company culture and values while creating meaningful ownership opportunities that attract and retain top talent. This approach particularly appeals to modern professionals seeking more than traditional compensation packages. ESOPs uniquely benefit employees by providing ownership without requiring personal investment or financial risk. The structure creates natural career advancement opportunities as employee-owners develop a deeper understanding of business operations. Direct participation in company success through stock ownership builds long-term wealth while encouraging strategic thinking at all organizational levels.
Challenges of an ESOP
An ESOP is a flexible, tax-efficient strategy that owners of privately held businesses can use to monetize some or all of their stock. A selling shareholder can defer paying federal income tax on capital gains from the sale of his or her shares of stock to an ESOP if the proceeds are reinvested in qualified replacement securities of U.S. operating companies under section 1042 of the Internal Revenue Code. This benefit applies in most states as well. For an owner to take advantage of the tax deferral, the company must file taxes as a C-Corporation, and the sale of shares must be made directly to the ESOP.
If the company is an S-Corporation when it becomes 100% ESOP-owned, a tax-exempt trust now owns the corporation and does not have to pay federal or state income taxes (in those states that recognize federal S-Corp status). As such, the corporation does not need to make tax distributions. This tax-exempt status is significant to selling business owners because they typically take back seller debt to finance the transaction, which can be structured
• Financial costs: Establishing and maintaining an ESOP can be expensive. Legal, valuation and administrative fees can be significant, especially for smaller companies.
• Debt and cash flow: ESOPs are often funded through borrowed money, which can add financial risk to the company. This debt needs to be managed carefully to avoid cash flow issues.
• Repurchase obligations: As employees retire or leave the company, the firm must buy back their shares. Buying back shares can create substantial financial obligations, especially if the company has performed well and the share value has increased.
• Complex administration: ESOPs require ongoing administration, including annual valuations, compliance with regulatory requirements, and communication with employees. This can be time-consuming and requires specialized knowledge.
• Cultural and management challenges: Transitioning
to an employee-owned structure can be challenging. It requires a shift in company culture and management practices to ensure employees are engaged and understand their roles as owners.
• Potential for dilution: If not managed correctly, issuing new shares to employees can dilute the ownership percentage of existing shareholders.
What Makes an ESOP a Good Fit?
Some parameters should be evaluated when comparing the ESOP strategy to other strategies for succession. Typically, when assessing if your company is a good ESOP candidate, consider the following:
• Is your company profitable?
• Does your company have a minimum of 30 employees?
• Does your company have an annual payroll of at least $1 million?
• Does your company have moderate to significant debt capacity?
• Did your company have substantial earnings and/or cash flow over the previous two years?
• Is your company experiencing steady and controlled growth?
• Does your company have a strong executive team that will remain in place after active shareholders leave?
• Would your company benefit from significant corporate income tax savings?
• Does your company currently contribute to an employee benefit plan (profit sharing or 401k)?
• Would equity-based compensation incentivize the current executive team?
• Would the selling shareholders like to participate in the company’s future growth after the sale?
As businesses seek sustainable growth while maintaining independence, ESOPs offer a proven solution that addresses multiple strategic objectives. This model creates lasting value for owners, employees, and communities while preserving organizational culture and mission. For companies evaluating ownership transitions, ESOPs represent a compelling alternative that aligns stakeholder interests while supporting long-term success.
The ESOP model ensures continuity of service, depth of expertise, and a commitment to putting clients’ interests first. As an owner, every employee becomes personally invested in the firm’s success and, by extension, the client’s success, creating a sustainable future for all stakeholders.
As more construction businesses explore the ESOP structure, it’s clear that this model offers a powerful solution for longterm sustainability and employee engagement. Whether you’re planning for succession or looking to strengthen your workforce, an ESOP provides a unique opportunity to align the interests of owners and employees, building a legacy that ensures the success and growth of your construction business for years to come.
Grassi forged this path in late 2023, announcing the firm’s move to an ESOP, one of the first accounting firms to adopt this alternative ownership model.
Grassi is a leading provider of advisory, accounting, and tax services to the construction industry.
THE IMPORTANCE OF COMPLIANCE AND SAVINGS WITH A 401(K) PLAN FOR FRINGE BENEFITS
For open shop contractors working on government-funded projects, navigating prevailing wage laws can be complex. One of the most effective strategies to ensure compliance while maximizing financial efficiency is directing fringe benefits into a 401(k) plan. TLC4 Prevailing Wage specializes in helping contractors leverage this approach, leading to substantial payroll tax savings and regulatory compliance.
When contractors pay fringe benefits in cash rather than allocating them to a bona fide benefits plan, they increase their payroll tax liability. Taxes such as FICA, FUTA, SUTA, and workers’ compensation premiums apply to the entire amount paid in wages. However, by directing fringe dollars into a 401(k) plan, contractors can significantly reduce payroll tax expenses while simultaneously enhancing employees’ retirement security. This method provides dual benefits — helping workers save for the future and improving a contractor’s bottom line.
Compliance is another critical reason to allocate fringe benefits properly. The Davis-Bacon Act and related state prevailing wage laws require that fringe benefits be used for the direct benefit of employees. By utilizing a 401(k) plan, contractors meet these legal obligations while avoiding the scrutiny and potential
BY TRACY CARVER
penalties associated with non-compliance. Moreover, TLC4 Prevailing Wage ensures that contributions align with ERISA and DOL regulations, simplifying the process for businesses.
In today’s competitive market, contractors who use a 401(k) for fringe benefits gain a financial edge by bidding more competitively and reducing overall labor costs. TLC4 Prevailing Wage provides the expertise and tools necessary to implement this strategy effectively, ensuring compliance while maximizing savings. Adopting this approach is a smart move for any contractor looking to improve financial efficiency and workforce benefits.
Tracy Carver is the president of TLC4 Prevailing Wage, a company specializing in custom 401(k) plans and compliance for open shop contractors, as well as those contractors working on prevailing wage projects. With over 16 years of experience, she is recognized for her extensive knowledge in retirement programs. Tracy is also an associate member of NJLICA..
FINANCIAL STRATEGIES FOR LAND IMPROVEMENT CONTRACTORS
Running a successful land improvement business requires more than just moving dirt — it requires moving money wisely. Whether you’re grading land, installing drainage systems, or excavating for new developments, managing finances strategically can mean the difference between long-term gain and financial strain. In an industry known for seasonality, heavy equipment costs, and unpredictable cash flow, financial planning is just as important as jobsite planning.
As a contractor, you understand the importance of laying a strong foundation before any project begins. The same principle applies to your finances. Without a solid financial strategy, even the most skilled contractors can find themselves struggling with inconsistent income, mounting expenses, and inadequate retirement planning.
In this article, I’ll share key financial strategies to help land improvement contractors build long-term financial plans.
1. Smooth out the seasonal cash flow
One of the biggest financial challenges for contractors is inconsistent cash flow. Work often fluctuates with the seasons, leading to months of high revenue followed by slower periods. Without careful planning, these fluctuations can cause financial stress and make it difficult to cover expenses when work slows down. To combat this:
BY MICHAEL J. GUARINO III
Build a cash reserve
A cash reserve acts as a safety net during slow seasons or unexpected downturns. A good rule of thumb is to keep three to six months’ worth of operating expenses in reserve. This ensures you can cover payroll, equipment maintenance, and other essential costs without relying on credit lines.
Structure contracts for better cash flow
Many contractors struggle with large gaps between payments, which can lead to financial strain. Instead of waiting until a project is completed to get paid, consider:
• Progressive billing: Structuring contracts so that you receive payments at different project milestones.
• Deposits upfront: Requiring a percentage of the total cost before work begins to cover initial expenses.
• Early payment incentives: Offering small discounts to clients who pay ahead of schedule.
Diversify income dtreams
A slow season doesn’t have to mean zero income. Many land improvement contractors find success in:
• Off-season services: Snow removal, de-icing, or land clearing can generate income when primary services
slow down.
• Equipment rentals: If you own expensive machinery that sits idle for part of the year, renting it out can create an additional revenue stream.
• Consulting services: Sharing your expertise through site planning, land-use consulting, or training new contractors can add another layer of income.
2. Smart equipment investments
Heavy machinery is the backbone of a land improvement business, but it also represents one of the biggest expenses. Poor equipment management can eat into profits and put a financial strain on your business. Before making large purchases, consider:
Evaluate leasing vs. buying
• Leasing equipment preserves cash flow, keeps maintenance costs predictable, and allows for easier upgrades.
• Buying equipment outright can be more cost-effective in the long run, especially if you plan to use it frequently.
A good rule of thumb: If a piece of equipment is used less than 60% of the time, leasing might be the better option. If you use it more than 60% of the time, buying could be more cost-effective.
Plan for maintenance costs
Unexpected equipment breakdowns can quickly derail cash flow. Regular preventative maintenance not only extends the life of machinery but also helps avoid costly emergency repairs. Set aside funds specifically for:
• Routine maintenance and inspections.
• Emergency repairs.
• Equipment replacement when necessary.
Take advantage of tax deductions
Section 179 of the tax code allows businesses to deduct the full purchase price of qualifying equipment instead of depreciating it over several years. This deduction can significantly lower taxable income and free up cash for reinvestment.
3. Managing business debt wisely
Many contractors rely on loans or credit lines to finance equipment, payroll, and expansion. While debt can be a useful tool, mismanagement can quickly become a burden.
Prioritize high-interest debt
Not all debt is created equal. Paying off credit cards and high-interest loans first can save thousands of dollars in unnecessary expenses.
Negotiate loan terms
Lenders are often willing to work with borrowers to secure better terms. Consider refinancing loans to lower interest rates or extend repayment terms to improve cash flow.
Use debt for growth, not survival
Taking on debt should be a strategic decision, not a means of staying afloat. Use financing to invest in:
• More efficient equipment that increases productivity.
• Expanding service offerings to attract new clients.
• Hiring skilled employees to improve operational capacity.
4. Planning for the future: retirement and investments
Many contractors focus on growing their businesses but neglect planning for their own financial future. Unlike traditional employees, business owners don’t have employer-sponsored retirement plans, so it’s crucial to take action early.
Set up a SEP IRA or Solo 401(k)
Both options allow business owners to contribute tax-advantaged savings toward retirement. A SEP IRA is easy to set up and allows high contribution limits, while a Solo 401(k) offers additional benefits, such as the ability to borrow against the balance.
Diversify investments beyond your business
While reinvesting in your business is important, relying solely on it for financial security is risky. Consider diversifying into:
• Stocks and bonds for long-term wealth building.
• Real estate investments for passive income.
• Mutual funds or ETFs for balanced growth.
Create an exit strategy
Whether you plan to sell your business, pass it down to family, or transition into retirement, having a clear succession plan ensures a smooth transition and protects your hard-earned wealth.
5. Work With a Financial Professional
Land improvement contractors excel at shaping the land, but navigating the financial landscape can be complex. Partnering with a financial advisor who understands the unique challenges of your industry can help you:
• Optimize cash flow by implementing smart budgeting strategies.
• Minimize taxes through deductions and strategic planning.
• Build long-term wealth by investing wisely.
Just like a well-planned grading project helps reduce the risk of future erosion, a well-structured financial plan can provide stability through economic ups and downs. Taking a proactive approach to financial management may better position your business for long-term resilience and security.
At Granite Wealth Partners, we specialize in helping contractors take control of their finances, grow their wealth, and plan for a strong financial future. If you’re ready to build a more secure financial foundation for your business and personal life, let’s talk. Contact us today at 973-625-1112 to see how we can help you dig deeper into financial success.
Securities offered through LPL Financial, Member FINRA/ SIPC. Investment Advice offered through Private Advisor Group, a Registered Investment Advisor. Private Advisor Group and Main Street Wealth Management are separate entities from LPL Financial.
Mike Guarino is a CEO, CDFA™, and AIF® at Granite Wealth Partners.
THE IMPORTANCE OF REGULARLY SERVICING YOUR MACHINE
At GT Mid Atlantic, we understand the critical role that construction equipment plays in the success of your projects. Whether you’re digging trenches, lifting heavy loads, or paving roads, your machinery needs to perform reliably and efficiently. To ensure that your equipment continues to work at its best, regular servicing is key. Here’s why regular machine maintenance is crucial and how it can benefit your business.
Maximizing equipment lifespan
Every piece of construction equipment is a significant investment. Regular servicing helps protect that investment by extending the lifespan of your machinery. When you maintain your equipment, you’re ensuring that components like the engine, hydraulic systems, and transmission continue to work properly. Regular in spections and tune-ups help catch minor issues before they esca late into major problems, allowing you to get the most out of your equipment for years to come.
Minimizing downtime
Downtime on a construction site can be costly. A broken machine can halt progress, delay deadlines, and lead to lost revenue. By adhering to a regular maintenance schedule, you reduce the risk of unexpected breakdowns. Routine checks ensure that critical parts are in good condition and functioning properly. With proper servicing, your equipment will be less likely to experience sudden failures, allowing you to keep projects on track and avoid costly delays.
Improved safety on the jobsite
Safety is paramount in construction. Regular servicing of your machinery helps ensure that it operates safely, reducing the risk of accidents on the jobsite. Worn-out or damaged parts, if left un checked, can compromise the safety of operators and workers. For example, failure to inspect and replace damaged hydraulic hoses or faulty brakes can lead to dangerous situations. A well-maintained machine is less likely to pose safety risks, ensuring that your team can focus on the job without worry.
BY BRENDAN MCINTYRE
Atlantic, we help our customers keep their equipment running efficiently so they can save money in the long run.
Preserving equipment value
If you ever plan to sell or trade your construction equipment, well-maintained machines hold their value much better than those that are neglected. Buyers are more likely to pay a premium for equipment that has been regularly serviced and maintained. Regularly servicing your equipment not only ensures that it works well, but also helps to retain its resale value.
Compliance with warranty agreements
Manufacturers often require that equipment undergoes regular
Your #1 Source for Everything Under Construction
Enhanced fuel efficiency
Construction equipment is costly to run, and fuel is one of the biggest ongoing expenses. Regular maintenance helps keep your machine operating at peak efficiency, which can lead to better fuel economy. By replacing air filters, maintaining proper tire pressure, and ensuring that the engine is running smoothly, you’ll reduce fuel consumption and lower operational costs. At GT Mid
Loaders
maintenance to maintain warranty coverage. Failure to follow the manufacturer’s recommended maintenance schedule could void your warranty, leaving you to pay for repairs that would have otherwise been covered. At GT Mid Atlantic, we recommend following the maintenance schedules outlined by the manufacturer to ensure you stay covered and protected.
Cost-effective in the long run
While regular servicing requires an upfront investment in time and resources, it can save you significant money in the long run. By proactively addressing issues before they turn into costly repairs or breakdowns, you avoid expensive repairs that could arise from neglect. Additionally, well-maintained equipment operates more efficiently, which can reduce operating costs, such as fuel consumption and wear and tear on parts.
Professional expertise and support from GT Mid Atlantic
At GT Mid Atlantic, we don’t just provide top-of-the-line construction equipment; we offer comprehensive service packages that ensure your machinery stays in excellent condition. Our team of certified technicians is trained to handle all aspects of equipment servicing, from routine oil changes to complex engine repairs. With our support, you can rest easy knowing that your machines are in the best hands.
SAFETY PERSPECTIVES
Regularly servicing your construction equipment is essential to keeping your machines in optimal condition, minimizing downtime, ensuring safety, and maximizing your investment. At GT Mid Atlantic, we believe in supporting our customers through every stage of their equipment’s life cycle, offering maintenance and service options that help you keep your machinery running smoothly. By staying on top of your machine’s service needs, you can protect your bottom line and keep your projects moving forward efficiently and safely.
If you haven’t scheduled a service for your machine recently, now’s the time to get in touch with our team. We’re here to help you keep your equipment operating at peak performance, so your business can thrive.
GT Mid Atlantic is a proud member of NJLICA and an equipment dealer with 15 locations in New Jersey, Pennsylvania, Delaware, and Maryland. “Your #1 source for everything under construction.”
DRIVER OUT-OF-SERVICE CRITERIA UPDATES
BY ANTHONY MORREALE
The Commercial Vehicle Safety Alliance (CVSA) has introduced important updates to the out-of-service criteria (OOSC) for drivers to take effect on April 1, 2025.
A revision to Part 1, Item 3 of the North American Standard OOSC clarifies that “an accompanying driver of a driver with a commercial learner’s permit (CLP) cannot be unauthorized to drive for any reason,” according to the CVSA announcement.
This update references the Federal Motor Carrier Safety Administration’s (FMCSA) update in the Federal Register, which specifies that a CLP holder must be accompanied by a valid commercial driver’s license (CDL) holder who is authorized to operate the commercial motor vehicle for that trip. In other words, if a driver is in prohibited status due to a reported substance or alcohol DOT violation, they cannot accompany a CLP holder for training purposes.
This update follows the new FMCSA Drug and Alcohol ClearinghouseII regulation, which revoked the commercial driving privileges of prohibited drivers in November 2024.
In another driver OOSC update, medical certificates will be removed from Part I, Item 4, to clarify that the OOS condition is the same regardless of whether the
vehicle is carrying property or people. The CVSA explained that “not having a medical certificate is an imminent hazard on the first offense for a driver, regardless of the type of vehicle being driven.”
International Roadcheck Announcement
The Commercial Vehicle Safety Alliance (CVSA) has announced that the highly anticipated International Roadcheck will occur May 13-15 this year. This three-day event, covering Canada, Mexico, and the United States, is designed to ensure that commercial motor vehicles comply with regulations and to enhance roadway safety.
During International Roadcheck, CVSA-certified law enforcement officers will perform comprehensive inspections of commercial vehicles and drivers at various locations, such as weigh/inspection stations, temporary roadside sites, and mobile patrols. This year’s focus areas are tires and false records of duty status (RODS).
For assistance with your OSDOT and OSHA compliance, don’t hesitate to get in touch with Anthony Morreale, co-owner of Tri-State Safety Solutions, at 732-551-3833, amorreale@tsss-nj.com, or visit our website, www. tsss-nj.com.
MAJOR WATER INFRASTRUCTURE BILL APPROVED
BY NICK YAKSICH
Even before being sworn in as the 47th president of the United States, Donald Trump launched a wide ranging series of executive orders to reshape the federal government. Somewhat lost in the rapid fire action of the new administration was a water infrastructure bill signed by outgoing President Biden authorizing water infrastructure projects for New Jersey and almost every state. Safe to say about the only thing the current and past presidents had in common was their willingness to spend money on infrastructure projects.
The bipartisan, bicameral Water Resources Development Act (WRDA) was signed into law by President Biden on Jan. 4, 2025, a month after the bipartisan leaders of the House Transportation and Infrastructure Committee and the Senate Environment and Public Works Committee announced a final agreement on Dec. 3, 2024.
WRDA provides Members of Congress the opportunity to authorize U.S. Army Corps of Engineers Civil Works projects to improve the nation’s ports and harbors, the inland waterway navigation network, flood and storm protection, and other water resources infrastructure. These projects originate at the local level and go through a rigorous vetting process before they may be considered for inclusion in a WRDA. Without WRDAs, Congress would have no input into the infrastructure projects undertaken by the Corps. This legislation also provides Congress the opportunity to address program and policy reforms for the Corps’ Civil Works Program.
WRDA projects typically require two separate types of authorization: the authority to study the feasibility of a project, followed by the authority to construct, operate, and/or maintain the project. Completed feasibility studies are submitted to Congress in the form of a chief’s report from the U.S. Army Corps of Engineers Chief of Engineers. If the results and recommendations contained in the chief’s report are favorable, construction authorization is typically included in WRDA. The costs for feasibility studies and construction are split between a non-federal sponsor and the Corps.
WRDA has been used to fund projects in New Jersey, including the Barnegat Inlet to Little Egg Inlet and the Port of New York and New Jersey.
“As Senator, it is my priority to ensure federal funding reaches communities across New Jersey. With this year’s Water Resources Development Act, I’m proud to have secured additional resources for the Garden State,” said Sen. Cory Booker. “This year’s legislation includes a number of priorities for which I
fought, including a $40 million authorization for the reconstruction of the Cape May Desalination Plan and the continued development of coastal storm risk management in the New York-New Jersey Harbor. These investments will yield tangible improvements to vital public infrastructure and help safeguard communities from the effects of climate change.”
The administration and Congress have their eyes set on much more infrastructure improvements critical to New Jersey’s economy. At the top of their agenda is the modernization of the air traffic control system, increased investment on passenger and cargo rail, elimination of burdensome regulations that delay planning and construction, and a long term vision for future highway and transit investments.
Executive orders can only do so much, but it’s the congressional approval like the recent WRDA bill that will continue to authorize federal infrastructure investment for New Jersey
Nick Yaksich serves as the director of government relations for LICA.
BY
PHOTO
JOSHUA SUKOFF, UNSPLASH
UPDATES
The New Jersey gubernatorial campaign is well underway.
There are six democrats running for the Democratic nomination: Congressman Josh Gottheimer; Congresswoman Micky Sherill; Former Senate President Steve Sweeney; Newark Mayor Ras Baraka; Jersey City Mayor Steve Fulop; Mayor & NJEA President Sean Spiller
The Republican nomination is being contested: Former Assemblyman Jack Ciattarelli; Radio personality Bill Spadea; State Senator Jon Bramnick; Former State Senator Ed “The Trucker” Durr.
There is no clear front runner in the Democratic primary. However, Assemblyman Ciattarelli is the clear front for the Republican nomination. Congresswoman Sherill has won three County Conventions. But since the “County Line” was ruled illegal by a federal judge last year, these events are considered beauty contests.
This year, all 80 seats of the NJ General Assembly with numerous primaries in both parties. We will provide highlights on specific races in the spring edition of this column.
A reminder that due to a Jewish holiday, the June primary is June 10, rather than the traditional first Tuesday in June.
On February 25, Gov. Phil Murphy presented his fiscal 2026 budget request, which totaled $58.1 billion. In his budget request,
BY ALADAR G. KOMJATHY
the governor requested $1.2 billion dollars of increases in taxes and fees. Listed below are some of the proposed taxes.
• Increase transfer taxes on homes over $1 million dollars
• Increased taxes on internet gaming and sports betting
• Higher taxes on alcohol
• Increase taxes on cigarettes and vape products
• New taxes on services and activities, such as go karting, bowling, interior design, and eliminating the tax exemptions and $20,000 tax cap on boat sales.
But as the saying goes in Trenton, “The governor proposes and the legislature disposes.” Further details will follow in the next edition of the newsletter.
We continue to advocate on behalf of NJLICA on various issues and continue to monitor issues that may adversely affect NJLICA.
Aladar G. Komjathy & Keen LLC represent NJLICA’s interests in Trenton with both the legislative and executive branches of government.
BUILDING A BETTER INSURANCE PROGRAM
As many contractors will attest, 2024 has represented another “hard market” for insurance. A hard market in insurance is characterized by significant insurance premium increases, restrictive policy terms and coverages, and few carrier alternatives for insureds. The construction industry is without question experiencing these adverse changes.
The insurance hard market began in the third quarter of 2019. The start of the hard market was primarily due to low interest rates, high economic inflation and increasing weather-related damage. The increases were focused on property insurance and auto physical damage coverage. While we have begun to see a moderation in these lines of coverage, the liability side of the insurance market is starting to harden. Unfortunately, this change in the liability market will likely cause 2025 to be another challenging year for the insurance marketplace. The hardening of the liability market is due to four primary drivers:
Economic inflation
Just as rising costs of goods have caused an increase in first party property claims, insurers are facing higher third-party property damage claims. These claims tend to lag first party claims, as subrogation efforts often occur after the initial claim payments have been made and contributory negligence can be determined.
Social inflation and nuclear verdicts
According to Swiss Re, there were 27 court cases with awards greater than $100 million in 2023. These high severity awards, known as nuclear verdicts, are creating substantial financial pressure on insurers, prompting higher coverage costs and more cautious underwriting.
Capacity constraints
Higher jury awards have caused reinsurers, the insurance providers for insurance companies, to increase their premiums and lower their liability limits. This limited capacity in the marketplace is leading to stricter terms, reduced limits, and increased pricing for high-liability exposures such as those found in the construction industry.
Low interest rates
Lower interest rates reduce investment income, forcing insurers to rely more heavily on underwriting profitability, which may drive premium increases.
As a result of these market conditions, it is incumbent on business owners and their insurance brokers to properly navigate this market to build a better insurance program. Now, more than ever, it is critical for a contractor to implement and maintain in-
BY DAVID CONCODORA
dustry best practices and loss control initiatives to become more attractive to the insurance marketplace as an ideal risk.
Insurance premiums represent a significant cost for anyone in the construction business. While increased prices are never positive, the insurance hard market has impacted all owners, not just a select few. However, by implementing certain best business practices, you can help mitigate the increases that your operation will incur. Regardless of the insurance coverage needed, these four steps will help your business in this hard market.
Assess your risks and customize your insurance coverages
Not all exposures are insurable and those that are can be covered in different manners. Completing a thorough risk survey can help you understand the potential for loss and how best to manage that potential.
Review contractual risk transfer techniques
Construction contracts can be a blessing or a curse. Businesses must be consciously aware of the contractual terms and agreements they sign to determine if they are transferring risk or assuming additional exposure.
Maintain proper documentation and regulatory compliance (OSHA, DOT, DOL, etc.)
Working in the construction space can be dangerous, which has created the need for governmental oversight and regulations. The involvement of many governmental entities means different reporting requirements and regulations to remain compliant.
Implement jobsite safety and housekeeping measures
Effective written safety protocols, safety improvement committees, and well-managed loss control records have a positive impact on an underwriter’s assessment of operational risk and leads to their best pricing considerations.
In addition to these general action items, there are additional risk management efforts that can be undertaken specific to each of your liability coverages that will help you build a better insurance program.
General liability
General liability is one of the most important insurance policies to protect a contractor’s business operations. Unfortunately, no two liability policies are the same. It is important that you work with a construction insurance specialist who understands the industry and can evaluate the specific risks and exposures associated with your operations. Below are several best practices to keep in mind to ensure you’re adequately protected and to enhance your insur-
ability in the current hard market:
• Strategic carrier selection
• Subcontractor management and contract review
• Regular jobsite inspections
• Tool box talks
Business auto liability
Business auto liability can represent one of the larger exposures for a contracting business. Maintaining a safe driving environment for your employees and business is crucial to your long-term success. Here are five best practices to consider:
• Regularly review motor vehicle records
• Conduct driver training based on written driver safety policies
• Install dashboard cameras
• Manage accurate fleet and driver records
Workers’ compensation
Workers’ compensation is a required policy for contractors that could be your biggest friend or your worst nightmare. If your prior loss history leads to a higher experience mod, then you will be paying more premium. The best way to protect against losses is to have a comprehensive program with some of the following best practices in place:
• Maintain an active safety committee that is endorsed by management
• Utilize physician panels
• Ensure proper employee classifications
• Institute a return-to-work program
The above summary represents some of the best practices to consider when looking to build a better insurance program, particularly in our current hard market. Each contractor has their own risk profile. Your insurance broker should assist you with identifying those risks and creating a plan to help manage, mitigate, and transfer those risks. Once the plan is created, the broker should also have the tools and resources to help you implement that plan. An effective insurance broker also advocates on your behalf when communicating with the insurance carrier to spotlight those best practices that have been implemented. These efforts will help support your business to be favorably looked upon as an ideal risk for preferred pricing, coverages, and terms.
For more information or to discuss ways to reduce your risk and build a better insurance program please contact Rue Insurance.
David Concodora, a risk management Consultant, joined Rue Insurance in 2011. David specializes within the construction industry. He holds several designations, including Certified Insurance Counselor (CIC), Construction Risk and Insurance Specialist (CRIS), and Accredited Advisor in Insurance (AAI). David takes great pride in partnering with his clients to provide effective insurance and risk management solutions.
THE CONTRACTORS BUSINESS REGISTRATION ACT
It’s time to renew your Home Improvement Contractors (HIC) registration, and the renewal application is requiring additional information now referred to as the Contractors Business Registration Act (CBRA).
CBRA affects all HIC contractors, aims to enhance consumer trust, and ensure contractors are financially able to meet their contracted responsibilities. Here are the expanded requirements for HIC Contractors.
Commercial General Liability Insurance
HICBs must maintain at least $500,000 in coverage per occurrence, while requiring $1,000,000.
Workers’ Compensation Insurance
HICs must carry workers’ compensation insurance (unless they qualify for an exemption) as a benefit and protection to any injured workers who are employed.
Additional Financial Security
Under the HIC updated rules, contractors are now required to secure financial protection, whether through a compliance bond, letter of credit, or other approved method
• Bond amount: The minimum bond amount is determined by the company’s revenue and job size:
o Class A: $50,000 for jobs over $120,000 or if prior year contracts were $750,000 or more
o Class B: $25,000 for jobs between $10,000 and $120,000 or if prior year contracts were $150,000 to $750,000
o Class C: $10,000 for contracts under $50,000 or if prior year contracts were under $150,000
• Claims: The bond must allow consumers to make claims with the board
• Replenishment: If any claims are paid out, the contractor must replenish the bond
FAQs
What are the updated insurance requirements for contractors in New Jersey?
Contractors classified as home improvement or home elevation contractors are now required to carry workers’ compensation insurance, maintain commercial general liability insurance, and secure additional protections such as compliance bonds or other approved financial securities.
Who must adhere to the updated Contractors Business Registration Act?
The revised regulations apply to all Home Improvement Contractor Businesses (HICBs) and Home Elevation Contractor Businesses (HECBs) operating in New Jersey. This includes both existing contractors and new applicants seeking to obtain, renew, or reinstate their registration.
What are the consequences of failing to meet the new requirements by March 2025?
BY RICHARD GAYNOR
Missing the March 31, 2025, deadline may result in delays or denials of registration renewal, potentially disrupting business operations. Contractors should ensure compliance with all insurance and security requirements well in advance to avoid these issues.
When should contractors start preparing for the 2025 renewal process?
Contractors are encouraged to begin preparations as early as possible, with the renewal process officially opening in January 2025. This allows ample time to gather all required documentation, verify compliance with updated regulations, and address any potential issues before the March 31, 2025, deadline.
Middleton & Company has been successful in offering multiyear bonds with discounted rates. These multi-year Bonds save cost which is guaranteed for up to 3 years! The deadline for this year’s renewal is March 31, 2025. Get started now.
Richard Gaynor is the president of Middleton & Company Insurance, the insurance advisor for many trade and business associations. The company provides informative, relevant, and cost-effective business insurance protection.
THE IMPACT OF EMPLOYEE BENEFITS ON EMPLOYEE ENGAGEMENT AND RETENTION
BY LINDSAY FUHRMAN
Your benefits can make or break employee engagement and retention. In today’s fast-paced and ever-evolving work environment, the challenge of maintaining high levels of employee retention and engagement has never been more critical. With companies actively competing for top-tier talent amidst a challenging market, employee benefits stand out as a key solution. These benefits, when tailored and communicated effectively, can become a cornerstone of an organization’s culture, directly influencing its ability to engage and retain employees.
Today, we explore the intricate relationship between employee benefits and engagement along with sharing tried and true employee engagement and retention strategies. The intersection of employee engagement and employee retention employee engagement refers to the emotional commitment and enthusiasm employees have towards their work and their employer.
Engaged employees are passionate about their jobs, feel a sense of connection to the company’s mission and values, and are willing to invest effort to contribute to its success. Engaged employees are often less likely to look elsewhere for a job. According to a recent survey by Gallup, “Engaged employees make it a point to show up to work and do more work -- highly engaged business units realize an 81% difference in absenteeism and a 14% difference in productivity.” As you can see, retention, reflecting an organization’s capacity to keep its workforce, is significantly impacted by the level of engagement.
When employees feel engaged and valued, they are less likely to seek employment elsewhere. This is because engaged employees:
• Feel a strong connection to the company’s mission and values.
• Experience job satisfaction, making them less inclined to seek new opportunities.
• Develop relationships with coworkers, which can further increase their reluctance to leave.
• Perceive their growth and development as being invested in by the organization, which encourages them to stay and grow within the company.
When companies increase employee engagement, it can also help boost employee productivity and retention across the board. So, the question then becomes, how can organizations improve the employee experience to leverage these benefits? It often starts with employee benefits. Benefits play a crucial role in this interconnection of engagement and retention. Beyond the basic expectation of fair compensation and health insurance, providing additional benefits like professional development, work-life balance, and recognition and rewards programs can significantly contribute to an employee’s engagement level. Offering more benefits demonstrates an organization’s investment in the well-being and future of its team, enhancing the emotional link between the employee and the employer. Benefits are a foundational part of improving employee retention and engagement.
If you want to experience the benefits of an engaged workforce, start by evaluating your benefits. There has been plenty of research into why employees leave their jobs, and on the flip side, the types of benefits, recognition, and rewards that encourage them to stay. Here are a handful of employee engagement and retention strategies that utilize benefits.
Tailored benefits packages
Gone are the days of a one-size-fits-all approach to benefits. Your workforce is comprised of individuals with diverse needs, and it’s essential to offer benefits that accommodate their unique situations. For instance, while some employees may value pet insurance, others may not find it relevant to their circumstances. The experts at the Society for Human Resource Management put it best: make sure to ask your employees what they want rather than just adding benefits because a competitor is. Con-
duct pulse surveys to gather feedback from employees and encourage them to voice their preferences regarding benefits. This approach ensures the creation of a comprehensive array of rewards tailored to their needs and preferences, increasing the likelihood of utilization.
Comprehensive wellness benefits
Show you care about employee health and happiness. Consider benefits that promote physical and mental well-being, like gym memberships, wellness challenges, mental health resources, or healthy food options in the break room. While there is a lot of emphasis on physical and mental wellness, you should also consider adding financial wellness to the mix. Harvard Business Review reports that even though 77% of workers view financial wellness programs as an important benefit, only 28% of employers offer them. Offering comprehensive financial wellness benefits can enhance employee loyalty, as employees are more likely to stay with companies that invest in their long-term success.
Work-life balance benefits
Work-life balance will always be important, especially as more employees are choosing remote work or a hybrid model. The right benefits can help employees achieve a healthy work-life balance. This could include generous paid time off, parental leave policies, or flexible work arrangements. These benefits are competitive and help improve engagement.
Professional development benefits
Another important aspect of an employee retention strategy is ensuring your team can see themselves at your company for years to come. Providing benefits that show you are invested in their growth is key. Some examples include tuition reimbursement, access to online learning platforms, or industry conferences as benefits to keep them engaged and committed to their career success. Continuous education also enhances your workforce by ensuring your team members are equipped with the latest knowledge and skill set.
Recognition and rewards programs
Do not underestimate how much employee recognition can improve engagement and prevent high turnover. Use benefits to recognize and reward achievements. This could involve bonus structures tied to performance, additional paid time off for exceeding goals, or even public recognition programs.
By strategically using benefits, you can create a more attractive workplace, improve employee engagement, and reduce turnover. However, offering a comprehensive benefits plan can also be costly. When choosing perks to improve employee engagement and retention, remember that more doesn’t always mean better. It is important to be strategic and offer a mix of benefits that your team will use and appreciate. At World Insurance, we are reshaping the employee benefits brokerage and consulting to make it better, not just bigger. Explore our innovative approach to employee benefits today.
Lindsay Fuhrman is the director of Population Health Management, Employee Benefits at World Insurance Associates. She is an expert at health management initiatives. You can contact her at lindsayfuhrman@ worldinsurance.com.
UMBRELLA LIABILITY INSURANCE
Clients often ask about ways to protect their assets and limit liability in the event of future creditors. Transferring assets to trusts, limited liability companies, or into the names of others (for example, a spouse or child) may work in some instances, but all have their drawbacks. Some states allow a grantor to create a self-settled asset protection trust, which safeguards assets from creditors and keeps the assets available to the grantor. However, New Jersey law does not allow such trusts. Limited liability companies provide protection for legitimate business or income-producing endeavors, such as a rental property, but not for personal assets. And spouses may be liable for their partner’s debts in certain circumstances. What, then, can be done?
One option to consider is purchasing umbrella liability insurance. An umbrella policy provides additional coverage beyond the limits of homeowners or auto insurance policies. An umbrella policy typically covers the following:
• Personal injury
• Property damage
• Slander, defamation, or libel
• Legal defense costs
Umbrella insurance kicks in when the limits of your home or auto policies run out. For example, assume you get into a car accident and are sued. A judgment (or settlement) determines you are responsible to pay $1 million. Your auto insurance coverage policy is for $500,000. Once you pay the deductible, the insurance company would pay $500,000. The umbrella policy would cover the remaining $500,000. Without the umbrella policy, you would be personally responsible for that remaining amount.
Typical umbrella policies may be purchased in amounts ranging from $1 million to $10 million, and the premiums are relatively inexpensive. The amount you should purchase depends on your total assets and your existing policies’ limits.
Businesses are also eligible to purchase umbrella insurance. Commercial umbrella policies are often purchased for up to $25 million in coverage to protect a business from expenses not covered by general liability and commercial auto policies in the event of a judgment or settlement. This could be the difference between continuing operations or being forced to go out of business.
Umbrella insurance does not cover every situation. Typical exclusions include intentional or criminal acts and liability associated with contracts into which you have entered. It is important to read the terms of the policy to ensure that the protection you are purchasing is adequate for your situation.
Some policies may also provide coverage if you are sued in your capacity as a director of a nonprofit organization or as the executor of an estate or trustee of a trust. Typically, people do not think about this risk when they accept the position of executor of an estate, and that could be a costly mistake. With the rise
BY ELIZABETH CANDIDO PETITE
in blended families and when emotions are already on high alert after the death of a loved one, family squabbles often morph into lawsuits claiming mismanagement or negligence by the fiduciary. Umbrella insurance might offer some protection here, as could other types of insurance specifically designed for these roles.
We recommend you consult your insurance agent and other advisors to determine whether umbrella liability insurance — and how much — is right to protect you and your family.
Elizabeth Candido Petite is the chair of Lindabury’s Wills, Trusts & Estates practice where she works with individuals, families, and business owners to create and implement customized estate plans.
National Labor Relations Board Continues Routine Operations with Lack of Quorum
By Jim Paretti, Sam Wiles, and Michelle Devlin on February 3, 2025
On January 27, 2025, the president removed National Labor Relations Board Member Gwynne A. Wilcox, leaving the Board with only two members: Chair Marvin E. Kaplan, a Republican, and Member David M. Prouty, a Democrat. That same day, the president also removed NLRB General Counsel Jennifer Abruzzo, and on February 1, 2025, fired her successor, Acting General Counsel Jessica Rutter. To date, the White House has not designated a new acting general counsel but is widely expected to do so shortly.
This means the Board is operating without a quorum and will be limited in certain operations until a quorum is restored. Specifically, the Board cannot issue any decisions, issue regulations, or otherwise take any action that would require Board approval while it stands at only two members. The president has not yet submitted any nominations for the three open seats on the Board, and former Member Wilcox has indicated she may challenge the lawfulness of her removal prior to the expiration of her term.
The National Labor Relations Act provides that a “vacancy in the Board shall not impair the right of the remaining members to exercise all of the powers of the Board, and three members of the Board shall, at all times, constitute a quorum of the Board….” In 2011, the Board anticipated the possibility of maintaining operations without a quorum and promulgated regulations to help facilitate “the normal functioning of the Agency during periods when the number of Board members falls below three….” These regulations were adopted in the wake of the U.S. Supreme Court’s decision in New Process Steel v. NLRB, 560 U.S. 674 (2010), in which the Court held that three Board members are required to maintain a valid quorum, and the Board could not lawfully delegate its authority to a two-member Board.
The regulations promulgated by the Board provide that when a quorum is lacking, the Board continues operations as normal “to the greatest extent permitted by law.” In these cases, powers normally retained by the Board, such as the ability to rule on motions for default judgment, summary judgment, or dismissal, are granted instead to the NLRB’s chief administrative law judge (ALJ) in Washington, D.C. for ruling. Those rulings cannot be appealed directly to the Board but may be considered upon appeal by a quorum of the Board at a later date.
Requests for special permission to appeal – which are appeals made during an unfair labor practice or representation case proceeding – are likewise referred to the chief ALJ and are similarly appealable to the Board only after restoration of a quorum.
Administrative and procedural requests, which include scheduling and extensions of time, are referred to the Office of the Executive Secretary and appeals of those decisions are made in a similar matter to the motions described above.
As a practical matter, until a quorum of the Board is returned and a general counsel is confirmed, Board operations regarding development of the law and new policy are effectively on hold. The lack of quorum does not, however, affect the filing of unfair labor practices charges or representation petitions, and most other day-to-day operations are expected to continue (although the authority of the Office of General Counsel to act on areas within its purview in the absence of a designated acting general counsel is not entirely clear, and employers may wish to consider challenging actions taken during this time by that office). Littler’s Workplace Policy Institute (WPI) will keep readers apprised of developments).
Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
Littler Mendelson is part of the international legal practice Littler Global which operates worldwide through a number of separate legal entities. Attorney Advertising.
AWARD WINNERS NJLICA
MOST ENTHUSIASTIC MEMBER OF THE YEAR
JUSTIN KRAMER
J. KRAMER LANDSCAPING & SNOWPLOWING
J. Kramer Landscaping and Snowplowing was built off a dream Justin had as a young boy. At 15, Justin had saved enough money to buy a push mower and trailer. While he was ready to work, he depended on his mother and grandfather to drive him around to his gigs for a couple of years. In the short time from age15 to 18, he had enough clients to start his business full time after graduating high school. Fast forward a short period of time, to age 21, he decided to grow and expand his business and services even more.
Today, Justin has a well-known, evolved business doing what he loves. In addition to landscaping, he also does hardscape design, property maintenance, excavating services, snow removal, and emergency water and sewer repairs for residential, commercial, and industrial customers. These are not just “customers” to Justin. Every opportunity he gets, he wants to build a connection with his clients, to ensure the outcome of his projects surpasses their expectations, and to have a lasting long-term relationship with them. He thoroughly enjoys building a client’s backyard dream, starting from nothing and watching his plan for the area come to life, knowing that memories will be made there when he is finished.
Along the path that has led Justin to where he is today, he doesn’t forget the support he has gotten and the people that he has met and has helped him along the way. Justin counts NJLICA as one of those supporters. He became a member a few years ago, and has leaned on them to keep him up to date on licenses or certificates that are needed, especially because things are always changing and Justin is always working in the field. Not only are the meetings helpful but he has met so many great people and has learned a lot so far.
Over 90% of the company’s business comes from referrals, and today Justin is doing work for the children of clients they did jobs for 20 years ago. Justin is reminded daily of the progress he has made building and growing and takes any opportunity to learn a new skill, while having mastered several skills after years of hard work and dedication to his dream. Whether you are looking for a small, simple idea to add to your lawn, or a more extravagant large patio with a pool and other hardscape designs added to your backyard, Justin will work hard to make your dream a reality. J. Kramer Landscaping and Snowplowing would be proud to be a part of your dreams!
ASSOCIATE OF THE YEAR
FRANK DEL GUERCIO TILCON NY
Frank Del Guercio started in the construction industry in 1986 selling concrete and gravel for County Concrete. He next worked for Millington Quarry, Wimpey Minerals, Blue Circle, and Stavola Construction Materials. In 2009, Frank went to work for North Bergen Asphalt. In 2011, Tilcon purchased North Bergen and Frank has been working for Tilcon ever since then. He sells asphalt and recycled materials to major paving contractors in New Jersey.
Frank was born and raised in Newark, New Jersey, and currently lives in Union with Pattie, his wife of 41 years. Frank has many nieces and nephews, as well as many great nieces and one great nephew.
Tilcon is a leading supplier of crushed stone in the New York Metropolitan area. The stone is used in a wide variety of construction applications as well as in the concrete and asphalt industries.
Tilcon crushed stone products are subject to rigorous quality control testing. Each location has its own QC lab which continuously monitors and tests material quality.
The asphalt mixes used by Tilcon are approved by the Federal Aviation Agency, Port Authority of New York and New Jersey, and the New York/New Jersey Departments of Transportation.
Tilcon has paving crews in New York and New Jersey, paving for all the above authorities.
CONTRACTOR OF THE YEAR
COLIN MACHLEDER FILCO INDUSTRIES
Colin Machleder is the President of Filco Industries, a construction company with locations in Newark, NJ and Washington, NJ. With over 30 years of experience in the excavation, demolition and garbage industry, Colin saw a need for limited access capabilities that did not exist in the Northeast Region. He established Filco Industries in 2005 as a specialized limited access company that would take on challenging projects that required designing and engineering customized solutions.
Filco is a family-owned business and Colin credits his employees for the company’s many accomplishments. Most of Filco’s employees have been with the company since it was launched and are highly specialized, trained, and dedicated to maintaining Filco’s reputation as the Special Forces of the Construction Industry. Generally speaking, every day brings something new and different that keeps the team engaged. Thinking outside the box is a job requirement.
The primary focus of Filco Industries is on providing customer service, innovative solutions, and high safety standards. This has allowed Filco to be part of private, public and federal projects across the country.
NEWS NJLICA
Each year, NJLICA is proud to distribute scholarships to multiple applicants.
This year, scholarships will be awarded to active NJLICA Contractor and/or Associate members who have been active in the association for at least two years. The following outlines the categories for who is eligible to be considered for a scholarship from NJLICA.
CATEGORY I - NJLICA Contractor Members
An active NJLICA Contractor Member may submit UNLIMITED applications for their company for one of the following:
● NJLICA Contractor Member
● Spouse of Contractor Member
● Children of Contractor Member
● Stepchildren of Contractor Member
● Grandchildren of Contractor Member
● Step-Grandchildren of Contractor Member
CATEGORY II - NJLICA Contractor Members Employees
An active NJLICA Contractor Member may submit ONE application for their company for one of the following:
● NJLICA Contractor Member Employee
● Spouse of Contractor Employee
● Children of Contractor Employee
● Stepchildren of Contractor Employee
● Grandchildren of Contractor Employee
● Step-Grandchildren of Contractor Employee
**The NJLICA Contractor Member has the responsibility of submitting ONE application for their company. NJLICA will only accept ONE application per company. If multiple applications from a company for this category are submitted, they will be returned to the NJLICA Contractor Member and then they will have to submit their ONE recommended application to NJLICA to be reviewed.**
CATEGORY III - NJLICA Associate Members
An active NJLICA Associate Member may submit ONE application for their company for one of the following :
● NJLICA Associate Member Employee
● Spouse of Associate Employee
● Children of Associate Employee
● Stepchildren of Associate Employee
● Grandchildren of Associate Employee
● Step-Grandchildren of Associate Employee
**The NJLICA Associate Member has the responsibility of submitting ONE application for their company. NJLICA will only accept ONE application per company. If multiple applications from a company for this category are submitted, they will be returned to the NJLICA Associate Member and then they will have to submit their ONE recommended application to NJLICA to be reviewed.**
Dear NJLICA Member,
As an NJLICA member, you, a family member, and/or employee may qualify for a scholarship for continuing education. I encourage you to review the qualifications and information listed below and submit your application postmarked by March 31, 2025
Each year, NJLICA distributes scholarships to multiple applicants. The scholarships are awarded to an active NJLICA contractor and/or associate member who has been in the association for at least two years, or to the employee, spouse, children, step-children, grandchildren, or step-grandchildren of a qualifying NJLICA contractor, associate member, and/or employee.
Funds for the scholarships are raised through our Silent Auctions as well as other events held throughout the year. Our members are extremely generous in keeping the scholarship program ongoing.
The scholarship will be awarded only to students who have been accepted by an accredited two-year or four-year college or university, or vocational-technical school for admission in the fall of the same year the award is granted. The scholarship payment will be made out to the student.
Scholarship recipients are selected on the basis of academic record, potential to succeed, leadership and participation in school and community activities, honors, an essay on facing challenges and adversity, and an outside, blind appraisal.
Procedure:
● Student obtains a scholarship application from the NJLICA website. www.njlica.org
● Student completes the application as per instructions.
● Student completes essay on a separate sheet of paper. Essay question found on application.
● Student sends the application to the executive director postmarked no later than March 31, 2025.
● Applications postmarked after March 31st will not be considered.
Scholarship recipients will be honored at our Scholarship Awards Dinner. This year’s event will be held at the home of Jeff Neary, J.A. Neary Excavating in Hillsborough, NJ, along with the 1st Annual NJLICA Car Show, on Wednesday, May 21, 2025. Scholarship recipients and guests are asked to attend. Please do not hesitate to contact me with any questions or if I can be of any assistance.
Construction, Forestry Land Surveying Walk Behind Loaders & Trenchers
Asphalt Pavers & Sweepers
Road Maintenance
Hydraulic Hammers & Compactors
Multi-Tip Dump Trucks Low Boy & Easy Loader Trailers Experts in Road Building & Minerals
Large Resources. Local Relationships.
We help our clients manage and protect their most valuable assets—their people and their business.
As part of the World Insurance Associates family, we offer our clients top products and services from the best providers that span all of your personal and commercial needs. You will continue to get the white-glove service and personal touch of your local agent. Call or email us today to learn more about our offerings. 908-738-8493 | lica@worldinsurance.com World Insurance Associates LLC, 100 Wood Avenue South, Iselin, NJ 08830
GROWING BIGGER AND STRONGER EVERY
Contractor Members
Alex Log Home Restoration LLC
Alex Fajszi Flemington, N.J.
Bell Mill Construction Co., Inc.
Katherine LaScala Belleville, N.J.
Beneldan, Inc.
Fabian Lee Ridgefield, N.J.
Brook Brothers Enterprises
Joseph Lana Saddle Brook, N.J.
Brown Contracting Group LLC
Derek Brown Margate City, N.J.
Centurion Contracting Corporation
Denise Ferguson Yonkers, N.Y.
Charles Matthew Lozosky Landscaping LLC
Charles Lozosky Ringwood, N.J.
Cifelli & Son General Contracting, Inc.
Michael Cifelli Nutley, N.J.
ConstructionWiz, Inc.
Anisha Mody Jersey City, N.J.
E. Gary Construction LLC
Ed Gary Browns Mills, N.J.
Edward DuBoyce Trucking
Edward DuBoyce Hackettstown, N.J.
DAY
Excavating New Jersey LLC
Mike White Wantage, N.J.
Fernandez Hauling & Dumping LLC
Mauricio Fernandez Hasbrouck Heights, N.J.
Garden State Asphalt Materials, Inc.
Joe Ahart Hackettstown, N.J.
General Contracting Group
Seamus Schofield Upper Saddle River, N.J.
Grau’s Trucking LLC
Edward Grau Morris Plains, N.J.
Hallett Contractors
Larry Hallett Bangor, Pa.
Harrison Brothers Paving LLC
Scarlett Harrison Yardley, Pa.
J. Fritz, Inc.
Joseph Fritz West Milford, N.J.
Karan Trucking LLC
Vijay Kumar Woodbury, N.J.
41 NEW MEMBERS IN THE FOURTH QUARTER
Morris Asphalt Co., Inc.
Thomas Schweitzer Lafayette, N.J.
NPK International, Inc.
Christopher Collins The Woodlands, Texas
Northeast Protection Partners
Steve Kownacki Valley Township, Pa.
On-Site Industries
Vincent Fumero Westfield, N.J.
P Construction Group
Marli Pimenta Neshanic Station, N.J.
Pierson Excavating
Arthur Pierson Branchville, N.J.
GET INVOLVED
THE NJLICA BOARD HAS POSITIONS AVAILABLE FOR THE FOLLOWING COMMITTEES:
Vision Strong Management Group provides full-service association management services for associations, foundations, societies, and trade organizations. Add your company name to our Patron Directory. Contact NJLICA Executive Director Buddy Freund at 973-630-7600 or buddy@govisionstrong.com.
THE NJLICA DUES YEAR RUNS FROM SEPTEMBER 1-AUGUST 31. DUES INVOICES WERE SENT IN SEPTEMBER AND NOVEMBER. IF YOU HAVE NOT PAID YOUR MEMBERSHIP DUES FOR 2024-25, PLEASE FORWARD TO THE ASSOCIATION OFFICE. YOUR CONTINUED SUPPORT IS APPRECIATED.
Scheideler Excavating Co.
A pprenticeship has been shown to help employers attract and retain employees, as well as cultivate a its members, NJLIC A maintains a USDOL approved apprenticeship pro gram for Tr uck Dr ivers (1 year), L aborers (2 years), and Heav y Equipment O perators (3 years). To encourage active par ticipation in its program,
to apprentices who are enrolled and actively par ticipate in the pro gram.
Employers who sponsor an apprenticeship in 2025 receive a 66% reduction in their annual contr ibution requirement to NJLIC A's A pprenticeship Tr ust fund. In addition, employers who sponsor apprentices gain skilled workers, reduce employee tur nover, an improve productivity. A pprenticeship can also help an employer address skilled labor shor tages at a time when many
are expensive, just about ever y aspect of our ever yday lives
invest in themselves by pursuing apprenticeship, NJLIC A cur rently provides individuals who are reg istered and actively par ticipating in its program with an annual stipend.
Apprentice Tr uck Drivers eligible to receive
• $3000 upon completion of the pro gram, OR CDL class paid for by NJLIC A
• pro gram
Apprentice L aborers elig ible to receive***
•
• $7500 for the second year completed
• the pro gram
Apprentice Heav y Equipment Operators eligible to receive***
•
• $7500 for the second year completed
• $7500 for the third year completed
• the pro gram
Contac t:
Trac y Car ver: tcar ver@tlc4prevailingwage.com
Buddy Freund: buddy@govisionstrong com NJLICA: 973.630.7600
2024 NJLICA HOLIDAY AWARDS DINNER
Dec. 5, 2024 marked the 46th Annual NJLICA Holiday Awards Dinner. This year's theme was Mingle & Jingle, and nearly 150 attendees enjoyed a night of celebration and great food at The Meadow Wood in Randolph, N.J. Honorees were Colin Machleder, Filco Industries, Contractor of the Year; Frank Del Guercio, Tilcon NY as Associate of the Year; and Justin Kramer, J. Kramer Landscaping & Snowplowing as the Most Enthusiastic Member.
Exceptional customer service that doesn’t end when a contract is signed.
NJLICA
buddy@govisionstrong.com
How Can Apprenticeship Training Help Your Company?
• Instill your company’s culture and retain workers
• Recruit and develop a diverse and highly skilled workforce
• Improve productivity, profitability, and your bottom line
• Reduce tur nover, improve loyalty, and retain top talent
• Demonstrate investment in your community
New hires and/or existing employees or Hire an apprentice from the NJLICA Apprenticeship Program
