The Professional Contractor

THE PROFESSIONAL

SUMMER 2016

A Publication of the Associated Subcontractors of Massachusetts, Inc.

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THE PROFESSIONAL

A Publication of the Associated Subcontractors of Massachusetts, Inc.

COVER PHOTO CREDIT: Peter Vanderwarker Photograph

16 How Windover Construction is Building a Reputation for Quality by Serving as a Trusted Advisor cover story

features

04 PRESIDENT’S VIEW The Many Sides of Politics 05

FRAUD PREVENTION 10 Tips to Help Businesses Avoid Accounts Payable and Purchasing-Related Fraud

06 FINANCIAL PLANNING

Building a Succession Plan

08 MEMBER PROFILE

T.J. McCartney Inc.

10 TECHNOLOGY

For Triumph Modular,

‘5S’ equals ‘Success’ 12 INSURANCE

Understanding Workers’ Compensation

14 FINANCIAL PLANNING

Business Succession

Planning: Why You Need to Do It

20 LEADERSHIP

Trust – A Critical Success Factor

22 LEGAL BRIEFS

It’s not the Crime, It’s the Cover Up –

Why You Don’t Hide Evidence 24 GOLF TOURNAMENT

Year 21 is a Sweet Success for ASM’s

Annual Golf Tournament 27 HUMAN RESOURCES

Re-Energize Your Hiring Strategy

28 ASM NEWS & EVENTS

30 PROJECT PHOTO GALLERY

The Professional Contractor

3

PRESIDENT’S VIEW

BY JOSEPH H. BODIO

The Many Sides of Politics

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olitics.” When defined by dictionaries, it is mostly associated with the governance of a country, especially the debate or conflict among parties or groups having or hoping to achieve power. This could not be better demonstrated than by the presidential campaign unfolding before us. It is the “third rail” of conversation in society. Your parents have always instructed you not to discuss politics or religion at the dinner table – especially at Thanksgiving.

Little do we realize how prevalent a role politics plays in our daily lives – totally apart from the “political” realm. It is engrained in our society. It is woven into the fabric of parenting, running a business, sports, etc. If you have raised children or even pets you have probably engaged in some type of “politicking” without even realizing it. How many times have you said: “If you do this chore you will get this reward” or “If you eat your broccoli, I’ll give you ice cream.” How about leading your dog out the door with a treat? This is politics in its simplest form. You have manipulated through trickery – a form of politicking.

The most common form of politics, and potentially the most toxic in our daily lives, occurs in the workplace – otherwise known as the dreaded “office politics.” Simply stated, it is the art of dealing with people that produces outcomes that are beneficial to you as a manager or owner, or bettering yourself as an employee Joseph H. Bodio is founder, president and CEO of LAN-TEL Communications in Norwood. He can be reached through ASM at 617-742-3412 or by email at president@associatedsubs.com.

at the expense of others. It can have nasty ramifications, and drive a stake through a company if not kept in check. Gossip, cliques, favoritism, backstabbing and even sabotage are the major ingredients in office politics.

The best way to combat this problem is to repeatedly preach to your employees that they concentrate on their jobs and their jobs only.

More importantly, instill in them the need to “become that employee that they themselves want to work beside.” Strike favoritism out of the equation by treating everyone fairly and equally, and promoting mutual respect. This will go a long way in ridding a company of such a cancer.

That advice can apply in the association context as well. If you participate in business associations, set aside your differences and work for the common good of your industry; there will be plenty of time to call the shots back in the office. As president of ASM, I have been fortunate to serve with fellow board members who understand the importance of mutual respect and collaboration in achieving success for the association, and by extension, for our businesses.

Through collaboration, we also experience the positive aspects of politics – as we work with our elected officials to achieve policy changes to better our industry and improve the business climate in the commonwealth for companies and employees alike. As with office politics, managing the traditional political process is never easy, but whether in the office or the state house, a reputation for honesty, integrity, fair dealing and respect will go a long way in achieving good results. s

The Professional Contractor is published by The Associated Subcontractors of Massachusetts, Inc. 15 Court Sq., Suite 840 Boston MA 02108 tel 617-742-3412 | fax 857-453-4338 mail@associatedsubs.com | www.associatedsubs.com

ASM Officers

President: Joseph H. Bodio, LAN-TEL Communications, Inc. President-Elect: Susan M. Mailman, Coghlin Electrical Contractors, Inc. Treasurer: Russell J. Anderson, Southeastern Metal Fabricators, Inc. Vice President: Steven P. Kenney, N. B. Kenney Co., Inc. Vice President: Scott H. Packard, Chapman Waterproofing Company Past President: Richard R. Fisher, Red Wing Construction

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Summer 2016

ASM Directors

Steven T. Amanti | Nardine J. Bellew | Matthew A. Brown | Christopher M. Buell | Stephen J. Capone | R. Lindsay Drisko | Roger A. Fuller | Peter J. Gormley | Wayne J. Griffin | Robert B. Hutchison | Dana E. Johnston Jr.| William J. (Mac) Lynch | Jeffrey T. Marr Jr. | Erik S. Maseng | James B. Miller| Bernard K. Quinlan | Nancy H. Salter | Frank J. Smith | David E. Wilson, Corwin & Corwin | Monica Lawton

The Warren Group Design / Production / Advertising www.thewarrengroup.com custompubs@thewarrengroup.com

©2016 The Warren Group, Inc. and Associated Subcontractors of Massachusetts, Inc All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher.

FRAUD PREVENTION

BY STEVEN T. BUCCIGROSS, CPA

10 Tips to Help Businesses Avoid Accounts Payable and Purchasing-Related Fraud

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company’s system for tracking and paying invoices is the main protection against improper non-payroll cash outflows. There is no more critical area for any organization than cash disbursements.

As such, a significant amount of energy and focus should be dedicated to ensuring that payments are properly authorized, processed and recorded.

There are numerous examples from all types of entities in which fraud related to accounts payable and purchasing has occurred, many times leaving business owners to wonder how something like this could have gone undetected. Often, the answer is that simple controls and reviews were not properly designed or were never put in place. Fraud – as simple as an employee writing him/herself or a spouse a check under a maiden name – has gone undetected for years and results in significant costs for companies.

Some common examples of this type of fraud include: Personal bills – an employee will use company funds to pay a personal bill.

Fictitious suppliers – a vendor will be set up in the master vendor list to enable false payments to be processed and the individual to misappropriate the cash payment.

Ordering personal items – an individual will place an order for personal items and remit payment for those items through the company’s accounts payable system.

Manual checks – checks written outside the company’s check-writing system and recorded through the general ledger as a business expense.

Misuse of company credit cards – corporate credit cards are used to make purchase of personal items.

Vendor kickbacks – vendors offer employees personal rewards for placing certain orders.

Wire fraud – can occur from inside or outside the company (many recent schemes have been in the news) in which someone pretends to be an owner and requests a wire transfer.

These are especially dangerous because, once the money is gone, recovery is nearly impossible.

So what can you do to protect your business? The following are simple, cost-effective controls that can be put into place to prevent and detect fraud in this important area: Segregation of duties – the individual entering the invoices into the accounts payable ledger should be separate from the individual writing the check and processing payment.

Purchase approval – a detailed and specific process should be in place to approve all purchases by an individual outside of the checkwriting/signing function.

Positive pay – if offered by the company’s bank, should be used to ensure that only authorized payments are made. This function should be performed by someone independent of the accounts payable and check-writing function.

Master vendor file review – should be performed by top management, and only payments made to authorized vendors should be processed. Any payment to a non-authorized vendor should require approval of ownership.

Three-way match – a control should be in place whereby the purchase order is agreed to the receiving report and those are agreed to the vendor invoice before payment is made.

Any variance should be investigated with professional skepticism.

Detailed review – take a careful look at bank statements and cancelled checks for unusual items performed by owners or high-level management. The important factor is that it continued on page 7 Steven Buccigross is a principal at the regional accounting, tax and business consulting firm BlumShapiro, and has 14 years of public accounting experience specializing in audits of privately held businesses in the construction, manufacturing, technology and real estate industries as well as nonprofit organizations.

He can be reached at 781-421-2087 or at sbuccigross@ blumshapiro.com.

The Professional Contractor

5

FINANCIAL PLANNING

BY SEAN MCCLOSKEY, CLU, CFBS, AEP

Building a Succession Plan

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s we consult with clients regarding the transfer of a family business from one generation to the next, we often run into one of three scenarios. The client has either 1) put off planning; 2) is completely paralyzed by the perception of a daunting process; or 3) has completed parts of the plan but has neither updated them nor rounded them out.

Recently, I was able to construct a succession plan for a local construction firm, now owned 100 percent by the second generation.

The owner is in his early 60s and has a strong desire to see ownership pass to two sons, who are very active in the business. He was able to purchase the business from his father and wants to give his sons the same opportunity.

He himself would like to wind down over time but stay engaged at some level for at least five years.

The process we take in these cases involves quarterbacking several players in the clients’ financial and business life. Coordination with attorneys, CPAs/accountants and investment advisors is critical to achieving a successful result. The business or the “Golden Goose” is the foundation to several aspects of the business owner’s life, including retirement, estate planning and the succession or sale of the business. Making sure that all advisors are on the same page is vital.

A well thought out and well executed plan should always incorporate both:

A Long Range Plan Retirement: What is your vision – travel, kicking back, continuing to work part time or starting a new venture?

Succession: What is ideal or practical – sale of the business, transfer to next generation or liquidation?

Estate Plan: Who gets what and when? Do you have children who are in the business and others are not? Is it fair to divide every asset equally, or are there other equalization techniques that would help “keep the peace?”

Sean McCloskey, CLU, CFBS, AEP is an accredited estate planner and consultant with Marsh & McLennan Agency. Sean can be reached at 781-467-4065 or Sean.McCloskey@MarshMMA.com.

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Summer 2016

A Contingency Plan What Ifs: Various life events can interrupt a great plan and vision. Death, disability and divorce can have devastating effects but, like most risks, can be managed.

Family Income: Without the proprietor of the “Golden Goose,” how will the family and employees’ families be affected?

Debt: It doesn’t go away because you have! Who will inherit the business and family obligations?

As mentioned, the cornerstone to all these components is the business itself. Business Valuation is a must. Not only does it clear the business owner’s mind about what the business is worth, but also what a potential buyer would pay for it. What is it worth to your family without you around? What will the IRS say it’s worth? How about a potential buyer? The combination of Business Valuation and a buy/sell agreement (reflecting the valuation) plays a huge role in any successful plan.

Our construction client was thrilled with our approach to solving his questions, concerns and long-term vision. Creativity in approach will enable him to achieve several objectives concurrently: •• Long-term retirement: He can wind down and retire in five years, with adequate income from the business over time; •• Financial security for his wife is assured through a buy/sell agreement where sons will use insurance proceeds to purchase stock from her, if untimely death; •• Discounting and liability leverage will help reduce and make the purchase affordable for the inter-family sale of the business to the sons; •• Equalization of the estate assures equitable treatment of two children not involved with the business; •• Assets are protected through use of trusts and pre-nuptial agreements with sons; •• Savings of $400,000 in transaction costs (taxes) has been achieved through creative strategies.

According to the Family Business Institute and several other sources, only 12 percent of family businesses survive to the third generation and 3 percent into the fourth and beyond. Study after study suggests the number one reason for failure is the lack of planning. An investment of time into your legacy by working “on” your business and not just “in” your business can yield dividends for generations to come. s

Fraud Prevention continued from 5

be someone without check-writing/ signing authority.

Call backs – put a process in place whereby any electronic request for transfer of funds is immediately followed up with a direct call to the individual who is requesting the transfer.

Review credit card statements – pay careful attention to corporate credit card statements on a regular basis to determine if items purchased were personal in nature.

Review by ownership of all reports that detail purchases by vendor and compare current year totals to the prior year. Large unexplained changes should be investigated.

Maintain physical security over checks and check-signing mechanisms.

The instinct to trust your longtime employees is common and,

in many cases, that trust has been earned. However, it is important for owners and management to remember that changes in life circumstances can lead otherwise trustworthy individuals to do things they normally would not. Setting a tone at the top of an organization to create a culture of honesty and integrity, in addition to implementing monitoring controls around the accounts payable process, can go a long way towards deterring and detecting fraud.

Organizational risk assessment specifically related to fraud can be a beneficial exercise for any company.

Setting an environment whereby management and/or ownership can discuss ways in which the organization is susceptible to the misappropriation of assets can lead to the implementation of controls

that will pay for themselves many times over. Another useful highlevel control that businesses should consider is the development of an annual budget. With an annual budget complete, budgeted vs. actual results can be compared. While this may not specifically detect fraud, it could narrow the focus to areas that seem unusual or outside of expectations. As an added benefit, these exercises can lead to improved efficiencies and drive bottom-line profitability.

Many of the controls listed above can be implemented without significant financial costs; however, they do require some time investment.

While it is important for organizations to create an efficient environment, it is equally critical to ensure that there are processes in place to safeguard a company’s assets. s

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The Professional Contractor

7

MEMBER PROFILE

BY DEBBIE SWANSON

T.J. McCartney Inc.

B

Top Row, left to right: Bridgewater State University, Marshall Conant Science Building; Brandeis University, Carl J. Shapiro Science Center.

Bottom: Liberty Mutual World Headquarters

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Summer 2016

acked by four decades of experience, union commercial drywall subcontractor T.J. McCartney has become known for quality, high-end projects.

The company was launched in 1976, operating for its first two years out of the New Hampshire home of Thomas J. McCartney. Previously a Marine pilot, Thomas, who had a background in working with suppliers, teamed up with partner Jimmy Morrisey, and the duo began establishing a name for themselves in the New Hampshire area. Business grew and they soon moved into office space in Amherst, New Hampshire.

The mall boom of the 1980s proved auspicious for the business and strong demand for mall work soon led to projects in Greater Boston. Morrisey left the company in 1989, and Thomas remained at the helm until 1995, when his daughter, Mary McCartney, took over.

Mary had applied her marketing background to the family business before, and began expanding her knowledge by attending estimating school and working as a project manager.

“It kind of morphed from there,” she recalls.

Today, the company is based in Nashua, New Hampshire and works primarily in Greater Boston, providing drywall services, exterior cladding, specialty interior ceilings, and exte-

rior and interior finish metals. Typical projects are high-end, large buildings, such as museums, office buildings, hospitals, laboratories, condominiums and hotels. While their niche is in large commercial jobs, they’ve worked on several residences in the Boston area, such as the luxury condo tower Ritz Carlton Residences.

Regardless of the project, Mary says the company remains true to her father’s founding vision – to deliver quality work. “We’re careful not to get too big that we can’t stick to what we’re good at,” she says. “When a client needs a high-end finish, we have the talent to deliver it.”

Notable projects include the new wing of Boston’s Museum of Fine Arts, which involved 220,000 square feet of new construction and 50,000 square feet of renovation, and the Harvard Art Museum, where they installed floating GRG barrel vaulted ceilings, among other features.

Over the years, T.J. McCartney has expanded their exterior cladding services, where their expertise includes installing exterior rain screen systems such as Terra Cotta, Trespa and Swiss Pearl, and other interior and exterior finishes including metal panels, metal siding, cement siding and wood siding.

“We’d always done cladding on a smaller scale, but now we’re becoming more specialized. We have employees with the background, and there’s a need for it,” Mary adds.

Recent exterior projects include Bridgewater State University’s Marshall Conant Science Building, where they installed exterior facade

elements including corrugated metal panels, Alucabond metal panels, Swiss Pearl Cement panels, wood sunshades and ceilings. At the Mezzo Lofts in Boston, a 4-story, 146-unit residential building, they installed drywall as well as Trespa and Hardi plank panels.

Teamwork and company pride is widespread among the company, and employee dedication is strong. Many of the approximately 150 employees today are long-timers, with a few having been on board since the early days.

“I’m spoiled with the talent pool we have, both in the office and in the field,” Mary says proudly. “It can be difficult finding quality employees – people aren’t going into the trades as much, or don’t come out of college planning to be a project manager.”

She’s very cognizant of the changing requirements placed upon workers today. “I remember when we’d do estimates using tapes; now everything is on computers,” she says. “Everyone has a laptop, and everyone needs to be computer savvy, to know how to work with an architect, go to the web site instead of drawings to see changes.”

In addition to union provided training, T.J. McCartney offers extensive training, including bringing in consultants to train their foremen.

They also tap into the talent of interns from Wentworth Institute of Technology, who help with paperwork, emails, and keeping up with changes. Their on-staff safety officer keeps everyone’s safety at top of mind.

Driven by pride in both their employees and their projects, Mary sees the company continuing to remain strong in delivering quality drywall services, and delving further into exterior cladding and exterior finish metals and interior ceilings. Upcoming plans include the Celtics practice facility, coming to Brighton, Massachusetts, and a new lab building for the Massachusetts Institute of Technology.

“We’re very client-driven,” says Mary, adding that they value their many long-standing relationships with top contractors. “Not all our projects are big; if one of our clients has something smaller, we’ll do that.”

She adds that there’s never a dull moment.

“It’s never the same, there’s always a challenge – it can be exciting.” s

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The Professional Contractor

9

TECHNOLOGY

BY SCOTT SZYCHER

For Triumph Modular, ‘5S’ equals ‘Success’

A

s a premier provider of custom modular buildings, trailers and containers in the temporary space market since 1981, Triumph Modular’s warehouse looked like something you’d expect to find at a busy construction company: ample square footage containing a variety of raw materials, tools, supplies and more. While typical of an indoor construction zone, it certainly wasn’t what co-owner Clifford Cort would call “super organized.”

“It didn’t represent our company’s values of safety, efficiency and self-respect,” said Cort, whose company had grown in parallel to the increased popularity of modular construction in commercial projects. “While companies can succeed in spite of their internal disorganization, I wanted ours to operate like one of those Fortune 500 companies, where the training and effort they put in shine through.”

Cort had originally heard about “Lean Construction,” which emphasizes communication and the elimination of waste, through a seminar from the Lean Construction Institute, a nonprofit organization dedicated to promoting the use of Lean project delivery in the construction industry. He subsequently heard about “5S,” which immediately grabbed his attention. 5S is the name of an organizational method to organize a workspace for efficiency and effectiveness by identifying and storing the items used, maintaining Scott Szycher is the membership, marketing and communications director for ASM.

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Summer 2016

the area and items and sustaining the new order. The components include:

•• Sort: Go through materials, keeping only the essential items needed to complete tasks.

•• Set in order: Ensure that all items are organized and each item has its designated place.

•• Shine: Proactively keep workplace areas clean and orderly to ensure purpose-driven work.

•• Standardize: Create a set of standards for both organization and processes.

•• Sustain: Maintain new practices, and conduct audits to maintain discipline.

First implemented in Japan by the Toyota Motor Corp. as a way to enable just-in-time manufacturing, the 5S methodology is gaining increasing acceptance in a variety of industries, including construction, due to its many benefits.

“It’s rudimentary, so any size company can implement it,” Cort proclaimed. “And it’s very visual. You can see labels where products or supplies should go, and once it’s in place, you can see how it will help productivity and efficiency. Things are labeled, so there’s less walking around and looking for tools and materials.”

Of course, as with any new system, many employers who have implemented 5S had some skeptical employees at first. And with local construction very busy these days, selling 5S to employees can be an even bigger challenge. But Cort saw the value in not standing pat with parts of his own business that needed more organization and structure.

“We were healthy, growing and prosperous, but even though we were used to our environment, the bar wasn’t high enough,” he recalled. “Once you implement 5S, it produces measurable improvements, so employees don’t think it’s a fad that will be gone in a year, or a waste of time.”

Nick Masci of Haley & Aldrich Inc., a leading engineering and consulting firm with a robust Lean advisory practice, commented on companies like Triumph going down the Lean path.

“5S can be a wonderful place to begin a Lean journey. Front-line workers will immediately feel that their work has gotten easier, so we build enthusiasm and commitment.”

Masci also stressed that 5S implementation helps bring senior managers and company owners out to the area(s) in their operations where actual work is done – often known in Lean circles as the “gemba,” which is the Japanese term for “the real place.”

“It’s an opportunity to practice visual management, standardized work, continuous improvement and for

leaders to practice being on the gemba,” said Masci.

Cort rejects the notion that busy companies shouldn’t implement the 5S methodology.

“Being super busy isn’t an excuse; even the busiest construction company wouldn’t say that it’s acceptable to have safety hazards,” he shrewdly observed. Nor does Cort believe that owners and managers should use their staff’s high level of activity as an excuse to keep delaying proper implementation of 5S. Beyond the safety and efficiency improvements, Cort also found that the 5S methodology, and Lean principles themselves, also improved employee morale.

“Certainly, Lean Construction is about reducing waste, but that alone doesn’t do justice to its benefits,” he said. “It just as much about empowering employees, as decisions on how things should run, or where things should be stored, comes from the employees. It helps to build trust and communication, which are critical in construction.”

He went so far as to say that the trust and communication improvements in his staff happened right away, and categorized some improvements as “dramatic.”

Which isn’t to say that implementing 5S, or any other changes to business-as-usual, means everyone buys in.

“Some employees will question it, some will come around when they see the benefits. Others, who might have a real problem accepting change, might leave your company, but that’s not necessarily a bad thing,” Cort opined. “The naysayers get sniffed out by the employees who have embraced it.”

Masci, whose firm worked with Triumph on its 5S implementation, has also noticed changes in Cort and his staff throughout the process.

“Cliff has evolved as a leader, and has embraced operator-led control,” he said. “His front-line workers have responded to this new found respect by innovating, ratcheting up quality and taking accountability.”

And it’s led to better chemistry between Cort and his colleagues throughout the company. “Where once there was apprehension to see leaders on the shop floor, now there is desire to see Cliff and the leadership team at the place of work. The staff take his desire to see what they’ve set up and ask questions why, as a show of respect,” Masci observed.

For Triumph Modular, the benefits of 5S have extended to the company’s sales and marketing. “We strive to be the low-cost provider of quality service, and the efficiencies we’ve achieved through Lean and 5S lower our costs, and help us be as competitive as possible on our pricing,” Cort said.

Cort isn’t done with 5S by any stretch; he’s planning to extend 5S to the company’s other division.

“We look forward to implementing 5S in our permanent modular construction division this fall,” he said. “We’re always looking for great subcontractors to help us build our modular buildings, so we encourage subcontractors who want to learn more to give us a call.”

Given that Lean and its various methodologies, including 5S, still haven’t been widely adopted in the construction industry, Cort offered a message to contractors still sitting on the sidelines.

“It’s not about paying consultants,” he concluded. “It’s about better efficiency, improved safety and a more engaged staff.

Having the customers notice your efficiency is the biggest payback of all.” s

The Professional Contractor

11

INSURANCE

BY CHRISTOPHER SHEPPARD, CPCU, AFSB, PWCA

Understanding Workers’ Compensation

U

nderstanding Workers’ Compensation (WC) can be a complex undertaking: between experience rating, classifications and the various state laws and regulations, it’s a lot to take in.

Depending on your trade, WC could be your most costly insurance coverage. It is important to understand how “Workers’ Comp.” can have a significant impact on your company’s bottom line.

This article is intended to give you a roadmap of the Workers’ Comp. market – from a 10,000-foot level. It will help you better understand how Workers’ Comp. works, and the things you can do to effect a more positive outcome.

First, it’s important to understand what Workers’ Compensation Insurance is. It is meant to provide wage replacement (indemnity) and medical benefits to employees injured during the course of employment, in exchange for mandatory relinquishment of the employee’s right to sue his or her employer.

In addition, it will provide payment for any permanent disability (settlement), and job retraining if the employee is unable to return to work.

7 Key Points Every Contractor Must Know About Their Workers’ Comp. Program 1. Experience Rating: The Experience Modification

(mod) Factor is calculated by using three years of data, not including the most recent expired policy. Each year the oldest year drops off, and a new year comes on. Every loss you have will stay with you for three years. Rather than get into all the intricacies of how it works, I’ll leave you with several key points: •• Many experience mods are incorrect and most are mismanaged.

•• Make sure you are reviewing open WC claims prior to your “unit stat date.” The unit stat date is six months after your expiration date, and the date at which the carriers will report claims and payroll to the rating bureau for the promulgation of your experience mod.

•• Make sure both audits and classifications are correct (up to 80 percent of all audits are incorrect according to some WC experts).

•• Wrap Up programs (CCIP/OCIP) will be included in your mod. It is important to know how they will affect it.

•• Know what your minimum mod is, and what it’s costing you not to be at the minimum.

•• Know what your experience mod is going to be 12

Summer 2016

six months prior to your next policy inception date.

•• Effective 7/1/16 the maximum loss cap for any one loss has increased from $175,000 to $210,000.

2. Covered States: I encourage you to look at the

first page of your Workers’ Comp. policy (declarations page). Section 3A lists the states where coverage is applicable, and you’ll want to make sure all states where you are doing work are listed under Section 3A. If not, you run the risk of a claim not being covered. If your policy is written in the voluntary market (not the Assigned Risk Pool), most carriers will simply add the other states under this section.

Do not automatically assume any state can be listed under Section 3A, however. Many carriers will limit which states they are willing to write coverage in. Therefore, it’s very important that you discuss with your broker all states you currently work in, and states you are considering working in. If you are in the assigned risk pool, you can’t add any other states under Section 3A, and will need to secure coverage elsewhere – typically with the pool carrier for that state.

3. Classifications: Contractors are fortunate, because most construction classifications allow for separation of payroll among different classifications.

This means you can separate employees between multiple construction codes, instead of being charged at whatever the highest rated code is. For instance, you could have employees who do multiple jobs, say an electrician (5190), who also does Electrical Apparatus installation (3724). As long as you keep separate payroll records for each, you will be able to separate out the payroll among the two codes, rather than be charged at the higher rated code. Do not assume all codes allow for separation of payroll – some don’t. For example, 5606 Executive Supervisor, an often incorrectly and overused code, does not.

4. Rates: Many of you are now aware, or should be, that Massachusetts just approved new WC rates, effective July 1, 2016. Some codes increased substantially (+16.5 percent), and some decreased (-15 percent). A complete listing of rates is available on the MA Workers’ Compensation Bureau website (www.wrribma.org). Massachusetts does operate differently than most other states in that the state

sets the WC rates for all carriers, whereas in other because if it does, you need the USL&H endorsestates, the carriers set their own rates. Surprisingly, ment added to your policy. The penalty for not MA Workers’ Comp. rates are significantly lower doing so could be an uncovered claim, which than most other states. If you are doing business exposes the owner personally (unlike standard out of state, it’s important you know what rate(s) WC). The USL&H rate is typically about 30 peryou will be charged. This is especially important cent more than standard WC rates. When adding when bidding work, so that your costs include the the coverage, you must add for EACH state where added cost of additional Workers’ Comp. preyou will need it. My suggestion is get it added on mium. an “if any basis,” but be aware that not all carriers A rate change could have an impact on your Exwill add the coverage, so it’s important to know perience Mod Factor. When rates go down, mods that up front. can go up. When rates go up, mods can go down.

All too often, companies feel helpless when You should know how your mod will be impacted. it comes to Workers’ Compensation, but that 5. Audits: Workers’ Comp. audits are an area where doesn’t have to be the case. Just like anything mistakes often occur. The mistakes are either a reelse, the more you know, the better your decisionsult of the client or WC auditor doing something making process, and the better your outcome(s). incorrectly. As a general rule, carrier auditors do a Although the seven points mentioned above good job, but that doesn’t mean they don’t make will give you a good foundation for understandmistakes. Common mistakes which could occur ining and managing Workers’ Compensation for clude: misclassification of employees; failure to acyour company, don’t be afraid to challenge your count for overtime properly; improperly charging broker, too, to think of creative ways to help lower for subcontractors; not including the construction your Workers’ Comp. costs. s credits (or other credits); or not deducting for Wrap Up programs.

Christopher Sheppard, CPCU, AFSB, PWCA is a It makes good business sense to ask for the senior vice president at Eastern Insurance Group. He “audit worksheets” after the audit. Settling just can be reached at 508-946-3121 or at csheppard@ for the audit summary is not a good idea, because easterninsurance.com. it doesn’t give you enough information. The worksheets will give you all the detail on how the auditor came up with their audited payrolls.

6. Credits: You should be aware of the various credits that are available. The carriers do a good job of notifying you of potential credits that are available, but you would have to read your entire policy to find them (typically added by endorsement). Different states will have different credits (i.e. Drug Free Credit deductibles). The construction classification credit is not just a Massachusetts program. A lot of other states and here. offer this credit as well, but will have their own criteria for qualification. If you are in the assigned risk pool, you should look into a QLMP, if you have never had one in the past.

7. U.S. Longshoremen and Harbor Serving the Bonding and Insurance needs of the Workers Act (USL&H): Most contracN.E. construction industry for over 40 years. tors, by definition, don’t do marine work. This doesn’t mean they couldn’t Ad a m De Sa n c t i s Gre g o r y Ju w a Ja m e s A xo n Mi c h a e l Ca rn e y potentially be exposed to the federal Wi l d e r Pa rk s Mi c h a e l Gi l b e r t Br y a n Ju w a Da v i d B o u t i e t t e USL&H Act. Any contractor doing Pa u l Pa t a l a n o Dick Caruso Jonathan Duggan work on, near, or adjacent to navigable waters of the United States, could DeSanctis Insurance Agency, Inc. potentially be subject to the Act. It is 100 Unicorn Park Drive important you understand if any of Woburn, MA 01801 (781) 935-8480 www.desanctisins.com your work brings you under the Act,

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The Professional Contractor

13

FINANCIAL PLANNING

BY JOHN AYERS, CFP, CIMA

Business Succession Planning: Why You Need to Do It

F

or many successful business owners, the dayto-day grind of running a company leaves little or no time to plan for the management and ownership changes that will inevitably occur as your business evolves. When you add to that the tough personal questions that arise when thinking about setting aside your business – how will the company run without me, what will I do when I retire, or can I afford to retire? – It’s no wonder that many business owners procrastinate or choose not to think about it.

Even if you don’t plan to retire anytime soon, it’s a good idea to carve out some time to consider how you’d transition your business if you were to get injured or ill, or on a more positive note, if you receive what might be a large buy-out offer for your company. Here are six compelling reasons why you need to start thinking about your business succession plan now: There’s no time like the present. It takes time to organize and implement a succession plan, no matter how you transition your business. If you decide to transfer your company to a trusted family John Ayers, CFP, CIMA is a financial advisor and vice president, wealth management at Morgan Stanley, and a founding member of The Westminster Street Group at Morgan Stanley. For more than 20 years, he has been helping small and family-owned business owners with financial planning, investment management, succession planning and estate planning strategies. He can be reached at 401276-5935 or John.C.Ayers@morganstanley.com.

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Summer 2016

member or valued employee, you will need time to identify and train your successor. If you opt to sell to a third party, you may need up to three years to prepare the business for sale and find the right buyer.

You may have a more efficient and profitable company. Preparing to sell your business will force you to look at the operations from the view point of a potential buyer. Through this lens, you may identify many ways to improve operations, the management team, and the company’s profitability.

Even if you don’t transition the business for many more years to come, you may own a more efficient, self-sustaining and profitable business that requires less of your time.

Succession planning impacts retirement and tax planning. Business succession planning may go hand-in-hand with retirement planning. Can you afford to step away from the company, or will you continue to need income from your business to support your retirement? Your answers to these questions may affect how and when you transition your business.

Related to this, how much money will the government take via income taxes, and perhaps even estate taxes? A well-thought-out plan, that includes consultation with from your wealth advisor, CPA and attorney, may significantly reduce these burdens.

The earlier you start, the more control you have.

There are many stakeholders that you will want to consider that will be impacted by the transition including employees, customers and vendors. The longer you wait to design and implement a succession plan, the fewer options you may have, resulting in a reduced chance of successfully completing the plan.

Timing is everything. The value of your business will vary from year to year based on several factors, many outside of your control. These factors include the success (or failure) of key customers, availability Morgan Stanley Smith Barney LLC (Morgan Stanley), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.

of funding by potential buyers, or just changes in the economic conditions. As such, there will be times that are better to sell than others. Consider the difference in value by selling a business prior to or just after the 2008 recession. By not waiting till you are forced to sell, you can potentially take advantage of more favorable market conditions.

Planning ahead helps you prepare yourself for change. As you think about giving up the role of business leader, you may also be faced with the question of how to redefine yourself outside the context of your business. A good succession plan prepares you, and the other stakeholders, for a time when you will no longer be in charge. Talking with your family members, key employees and your wealth advisor can help you work through the complex financial and emotional issues that may be involved in passing the torch.

It’s never easy to think about transitioning your business, but proactive planning can have a positive effect on all stakeholders, including you. s

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The Professional Contractor

15

How Windover Construction is Building a Reputation for Quality

by Serving as a Trusted Advisor

PHOTO CREDIT: Peter Vanderwarker Photography

By Linda Goodspeed

W Lee Dellicker, President & CEO, Windover Construction

Stuart Meurer, Executive Vice President & COO, Windover Construction

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Summer 2016

hen the maintenance manager hired by one of Windover Construction’s clients did not work out, Windover sent over one of its superintendents to temporarily fill the position and help the client hire a new manager. At one of its hotel projects, Windover bought all of the furnishings for the client, right down to the bed sheets and table linens. When another client interviewed Windover about building its project, instead of blowing its own horn, Windover told the client the proposed project may lose money.

“I did some research before the interview, and instead of telling them how great Windover was, I said, ‘What if I told you that you could build this $74 million project and risk losing $14 million, or build an alternative project for $45 million and make $15 million?’”

said Lee Dellicker, president and CEO. Windover got the job.

“Many of our clients look at us as more than just a contractor,” Dellicker said. “We have figured out how to really listen to clients and help them solve problems. We get involved in helping them work out their business plan, get permits, financing, design work, really soup to nuts.”

The term “trusted advisor” is often overused, but in the case of Windover Construction, the term has taken on new meaning.

“We advise our clients not just on construction, but on every facet of the job,” said Stuart Meurer, chief operating officer and executive vice president. “We encourage our teams to always think like the client and think like the design team. Get in their shoes, get in their worry circle. We make sure we provide a smooth ride throughout the project. We

manage their risk above and beyond just the construction end.”

PHOTO CREDIT: Shelly Harrison Photography

Headquartered in Beverly, Mass., Windover Construction is rewriting how construction companies operate and, in the process, has become one of the North Shore’s fastest rising new stars.

The company started 12 years ago building luxury homes. Dellicker, who grew up in Holliston and earned a degree in structural engineering from the University of Maine, was a principal at Shawmut Design & Construction in Boston before he joined the company in 2005.

“I was 48 and ready to do my own thing,” Dellicker said. “But I had a two-year non-compete at Shawmut so I couldn’t go right into construction.

I hung out a shingle and went into consulting.”

He met Steve Dodge, who had retired from his previous company, American Tower. Steve’s focus was real estate development and Lee brought his own development and construction expertise to the table to help form Windover Development. The company was named after one of the earlier properties they had acquired, Windover Farm in Wenham, Mass. The team proceeded to build many residential properties including an enclave of four luxury homes and a 55 and over community in Wenham, and a transitoriented condominium building in Beverly, Mass. along with several other single family homes.

“We were planning to do a lot more, but the economy did not cooperate with our business plan,” Dellicker said. But by then, his non-compete at Shawmut had expired. Despite the worsening recession, Dellicker formed Windover Construction in December 2007, pulled out his old rolodex and began looking for clients.

“My background was mostly institutional, private schools and colleges,” he said. “Windover had developed a strong reputation for quality residen-

PHOTO CREDIT: Shelly Harrison Photography

A Pivotal Change in Business Planning

Windover’s Representative Projects Windover has built successful client relationships in various markets, as demonstrated by the projects following: Endicott College – Multiple Projects, Beverly, Mass.

• Gerrish School of Business and Judge Science Center: a 67,000-square-foot academic STEM facility.

• Standish Hall: a 95,000-square-foot modularly built residence hall.

• Callahan Center: a 68,000-square-foot renovation and addition to the campus’ main student and dining center.

• Raymond J. Bourque Arena: a 40,000-square-foot ice arena.

St. John’s Prep – Multiple Projects, Danvers, Mass.

• Brother Keefe, C.F.X. Academic Center: a 74,000-square-foot high school academic facility.

• Brother Benjamin Hall: a 14,000-square-foot, fast-track renovation for a new Middle School.

• Wellness Center: a 88,000-square-foot indoor aquatic, gymnasium, and athletic center.

Beauport Hotel Gloucester, Gloucester, Mass.

• A 115,000-square-foot luxury hotel.

Beverly Crossing – Multiple Projects, Beverly, Mass.

• Enterprise Apartments: a 70,000-square-foot luxury apartment complex.

• Burnham Apartments: a 40,000-square-foot transit-oriented apartment complex.

• The Flats at 131: a 99,000-square-foot luxury apartment complex.

The Residences at Turner Hill, Ipswich, Mass.

• A high-end residential community consisting of 28 custom homes Supportive Housing for Veterans – multiple projects, multiple locations • Bedford Green, Bedford, Mass.: a 67,800-square-foot facility featuring 70 one-bedroom units of supportive housing for homeless veterans.

• Valley Brook Village, Lyons, New Jersey: 62 units of supportive housing for homeless veterans.

• Pleasant Street Apartments, Beverly, Mass.: adaptive reuse to create 32 units of affordable housing for veterans.

• Howard Home, Brockton, Mass.: adaptive reuse to create 14 units of affordable housing for veterans.

continued on page 18

The Professional Contractor

17

Windover Construction

tial construction. I capitalized on that, and married it with my expertise in the institutional world. It worked even better than I thought.”

The company targeted smaller educational institutions, which also yielded a lot of luxury home work from high-net worth individuals associated with the schools. In its first year, 2008, Windover Construction grossed $7 million. In 2009, the company did $26 million, and $35 million in both 2010 and 2011. By 2013, the company was grossing $90 million, and today is a $130 million company with 94 employees.

About 70 to 80 percent of its work is institutional, including academic, hotels and hospitality, country clubs, banks and museums, and 20 to 30 percent residential, a mix Dellicker likes. Most of its work, thus far, has been in eastern Massachusetts, southern Maine and New Hampshire, although Dellicker said that footprint may expand as the company continues to grow.

Over the years, Windover has won numerous industry awards for quality workmanship. In addition to its reputation for quality work, what really sets the company apart is its service model. Windover helps clients through every phase of a project, from preconstruction estimating, permitting, land acquisition, financing and design, to actual construction and post-construction support. Indicative of this service-centered focus is Windover’s Customer Service Group (CSG), a small group of employees dedicated to customer satisfaction.

“One of the biggest complaints many customers have about contractors is that they never quite finish the job,” Dellicker said. “My view is that what differentiates any builder is not only how well you build, but how you respond after it’s built.”

To that end, he created the company’s Customer Service Group team, unique among construction companies. The group has three missions: 18

Summer 2016

PHOTO CREDIT: Peter Vanderwarker Photography

PHOTO CREDIT: Peter Vanderwarker Photography

PHOTO CREDIT: Shelly Harrison Photography

continued from page 17

“Finish every job strong – be as close to a zero punch list as possible,” Dellicker said. “Look for fine details somebody working on the job for several months might miss.”

Number two is warranty support. “If something goes wrong, we’re going to solve the problem,” he said.

The group’s third mission is to respond to customers’ needs, no matter how small.

“Every time you finish a building, whether it’s as complicated as a new science building for a college, or a private home, once you move in, there’s always something that needs to be done – a door moved, shelves put in. We want customers to call us, even for the small stuff,” Dellicker said.

Future and Challenges

Looking ahead, Dellicker sees many challenges on the horizon. Chief among them is maintaining the company’s brand.

“The challenge of being a $130 million company is that you get perceived as being a big company, and customers worry they may not get the same level of service,” he said. “It requires a lot of attention to customer relationships, communication, a lot of work to keep that brand intact.”

Meurer said finding enough skilled trades people is also becoming more challenging.

“Certain trades definitely have a labor shortage,” he said.

“We need more qualified, entry-level apprenticeship programs feeding the trades.”

Compounding the labor shortage is the current pace of work.

“Our clients want projects turned around quicker. They get approval, and want to get a shovel in the ground as soon as possible,” Meurer said. “It’s made it challenging for everybody. The preconstruction time has shrunk. It’s affected everybody from designers to subs. Everybody has lost time.”

PHOTO CREDIT: Shelly Harrison Photography

PHOTO CREDIT: Shelly Harrison Photography

Dellicker thinks the current pace will continue, at least for the short term. “I try to run the company like the next recession is right around the corner. But I do believe, based on our backlog, that the economy is very strong,” he said.

“Things look good.”

He said expanding Windover’s model to other parts of the country is not out of the question.

“We have to think about growth because we have to think about our people,” he said. “We’ve invested in people. We’re

very careful in our hiring. We want the best of the best.

We’ve got people who want to grow in their careers, so we have to think about growing [the company].”

He noted expansion may also occur quite naturally just from following clients. A lot of Windover’s work is repeat clients.

“It’s all about relationships,” Dellicker said. “If you do a good job, word spreads like wildfire. If you do a bad job, it spreads even faster.” s

The Professional Contractor

19

LEADERSHIP

BY GREG ENOS

Trust – A Critical Success Factor

T

rust is a critical part of life that is frequently taken for granted. It is manifested in many ways, requires the practice of humility and cannot be taken for granted without serious consequences.

We may not be able to explain how we trust others or be conscious of how critical it is to our daily success.

Trust requires integrity, authenticity and candor. It is closely connected to teamwork.

Tom Coughlin, who was head coach of the New York Giants when they won two Super Bowls, said of his players, “I needed to demonstrate that I cared about them. Trust is a critical factor.”

Leaders need to ensure that “everything they do is in the best interests of the team. Respect is important; humility is critical,” explained the coach.

It takes the commitment of two or more individuals for there to be effective trust.

It is one of the most critical advantages that successful leaders can have.

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We believe that a workforce united by similar attitudes and a common goal is a necessity on every job site, and helps lead to our success.

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www.waynejgriffinelectric.com 20

Summer 2016

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Coughlin used a leadership council of respected representatives to support communication with all team members. Trust was built with a shared agenda.

“Remember that character, as demonstrated by consistency, is very important to establishing and maintaining trust,” explains Coughlin.

Trust is built over a period of time and is reinforced consistently by actions of integrity and authenticity.

Sincerity establishes a reservoir of dignity that can support leaders when things go wrong or they misspeak.

Robert T. Whipple (www.leadergrown.com), author of “Leading with Trust is Like Sailing Downwind,” is a renowned leadership expert and speaker who identifies trust as the critical factor in successful leadership.

He suggests that building trust with team members is like contributing to a bank account, where leaders’ compassion, sacrifice and sharing set the tone of the relationship. Deposits are sincere efforts to treat everybody with dignity.

Can broken trust be repaired?

Experts express a wide range of opinions.

Dr. Kittie W. Watson, an internationally recognized listening expert, author and business consultant, believes that it is possible but very difficult.

Once trust is broken, others will look for ways to support and/or reinforce their perceptions. “Recov-

ery takes time and individuals must work to rebuild the relationship by following through on their promises, keeping confidences and demonstrating new behaviors,” said Watson, who works with executives and their teams. “It takes longer the second time and requires that you need to follow through on your promises.”

Executive coach Jamie Millard (www.LexingtonLeadershipPartners.com) points out that “both parties need to be willing to try” and rebuild the trust.

Unfortunately, sometimes reestablishing a trusting relationship is virtually impossible.

Jon Gordon’s book “Soup” (www.Soup11.com) captures the importance of trust for team. It says, “Trust generates commitment, commitment fosters teamwork and teamwork delivers results. Know your team culture.” It all fits together.

Trust is an incredibly valuable asset to leaders in any industry who are willing to create an environment of integrity, respect, humility, authenticity and shared values. It requires continued investment, open communications and sincere concern for team members. s

Greg Enos is managing principal of Time Communications Associates LLC in Conway, South Carolina. He has helped thousands of professionals increase their personal productivity and leadership skills. He can be reached at www.gregenos.com.

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The Professional Contractor

21

LEGAL BRIEFS

BY TODD A. HARPST, ESQ.

It’s not the Crime, It’s the Cover Up – Why You Don’t Hide Evidence

S

ometimes, it’s the pre-trial discovery process, and not the trial itself, that creates the biggest risk to businesses. Those who have had the experience of being sued know how onerous, expensive and frustrating the discovery process can be – having to search through, filter, analyze, catalog and then assemble mountains of digital and paper records, most of which eventually prove to be irrelevant to the dispute at hand.

For the uninitiated, civil litigation rules require both sides of a dispute to turn all their evidence over to the other side, and to respond fully and completely when the other side requests specific documents and other information. In many cases, the best evidence is in the possession of the other party, and the rules require that party to turn it over.

Clients, as well as lawyers, continue to be awed by the time and money this process requires, and for the many businesses who don’t litigate often (and most do not), the internal resources burned complying with discovery requests can be devastating. Additionally, some litigants know “bad” evidence exists within their records, and think by hiding it no one will ever know. When asked, these parties either outright lie about the existence of certain evidence, or parse the request so finely that they can rationalize their way out of producing responsive information. It doesn’t matter whether this is done out of some misperceived convenience, or whether the motive is more nefarious – parties who withhold information can be, and frequently are, punished for it, even if the other side is not hurt.

This lesson was dearly learned by the defendants in the Stryker Corp. v. Ridgeway, et al., U.S. Dist. Ct. W.D. Mich. 1:13 cv 1066, after the district court imposed severe sanctions on a defendant who allegedly lied about the existence of emails Todd Harpst, Esq., is a partner at Harpst Ross Ltd. – Business Lawyers for the Construction Industry, based in Uniontown, Ohio. He can be reached at (330) 983-9971 or tharpst@ harpstross.com.

This article is reprinted with permission from the Harpst Ross Ltd. Blog, found at www.harpstross.com.

22

Summer 2016

and other electronic records so he would not have to turn them over in discovery. The plaintiff, Stryker Corp. (Stryker), fired Christopher Ridgeway (Ridgeway) when it was discovered he was running two competing side businesses, that Stryker believed Ridgeway was using to divert business from Stryker. Stryker also believed Ridgeway was conspiring with another of Stryker’s competitors to steal Stryker’s employees, funnel confidential Stryker information to this competitor, and sabotage Stryker’s business. Stryker believed it would find all the proof needed to confirm its suspicions in Ridgeway’s personal emails, text messages, and cell phone records. But, as Stryker learned, obtaining those documents wouldn’t be as easy done as said.

When Ridgeway produced few responsive documents in discovery, Stryker claimed shenanigans.

Ridgeway explained that emails within large date ranges had been deleted by his webmail provider and that he had not used a specific cell phone account during the relevant time period (as the reason he did not produce phone records for that number), and denied certain documents ever existed. Undeterred, Stryker issued a subpoena to Verizon, which disclosed the account in question had been used. Stryker also discovered emails Ridgeway denied sending, in the possession of a third party he was accused of improperly soliciting for business, and when Stryker hired a forensic computer technician to examine Ridgeway’s devices, found more than 188,000 additional communications that Stryker had been told no longer existed.

Based upon the newly discovered information, Stryker move the court to sanction Ridgeway for violating the discovery rules. In opposing the motion for sanctions, Ridgway argued he shouldn’t be punished because Stryker ended up getting the information it sought from third parties (Verizon and the customer, and from the forensic examination), so even if Ridgeway didn’t produce it himself, or if he had destroyed it, there was no harm done. Ridgeway also argued that the documents he was accused of hiding were not relevant to the underlying dispute, so even if he didn’t produce them, the lack of harm meant he should

receive no punishment. The court disagreed and, after a hearing, found that Ridgeway had acted in bad faith by not making full disclosures in the case.

The court ordered him to pay Stryker’s attorney and expert fees to obtain the information the hard way. Stryker asked the court to penalize Ridgeway by deciding the case in Stryker’s favor, which would have been the ultimate punishment, but the court declined, instead scheduling the case for trial.

Ridgeway’s “no harm, no foul” argument was rejected, and he was punished for hiding evidence, and then lying about its existence. It ended up being irrelevant that what he hid or tried to destroy was not important in the grand scheme of the lawsuit.

There was no smoking gun revealed in the discovered evidence, although, according to Stryker, much of what was

found incriminated Ridgeway nonetheless. The point being that Ridgeway’s act of being accused of diverting business from his employer was made that much worse when he tried to cover it up. It also made his argument that the evidence was irrelevant hard to accept – because it was illogical that he would hide or destroy irrelevant evidence.

The other issue – and perhaps a worse problem than having to pay the other side’s expenses – was the harm Ridgeway did to his credibility. When the case goes to trial, Stryker’s lawyers can ask the court to inform the jury of Ridgeway’s conduct trying to hide evidence, and the jury may hold that against Ridgeway when deciding if he is liable to Stryker. Imagine the difference in possible outcomes when going before a jury claiming you did noth-

ing wrong and turned everything over versus claiming you did nothing wrong after having been sanctioned for unsuccessfully trying to hide evidence.

In our experience litigating – and we have done our share of it – the cover up is almost always worse than the crime. If you think producing 188,000 emails and text messages voluntarily is expensive, try paying the price after unsuccessfully trying to hide those same emails and text messages. We should all know by now that nothing is ever truly deleted, and that is especially true now that experienced litigators know where to look. When dealing with emails and phone records especially, there is always another party to the conversation whose records can be discovered. The litigation lesson from Stryker is that telling the truth is still the best strategy. s

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The Professional Contractor

23

GOLF TOURNAMENT

Year 21 is a Sweet Success for ASM’s Annual Golf Tournament

I

t seemed an impossible task to match last year’s record-breaking event, but that didn’t stop our enthusiastic new Golf Committee from trying, and succeed they did! Once again, 288 golfers packed the two stunning courses at The International Golf Club in Bolton on July 11 for ASM’s 21st Annual Golf Tournament.

And once again, the fairways were lined with signs and banners in every direction, courtesy of over 110 tournament sponsors (see all major sponsors listed on page 26). Thanks to their generosity, the event was another outstanding success, providing funds to support ASM’s member services and advocacy efforts throughout the year. Special thanks go to Acadia Insurance, sponsors of this year’s special player gift – handsome golf wind shirts.

Throughout the day, the golfers enjoyed a variety of special contests, and at the end of the day, nearly 100 went home as prize winners, either for their skill on the course, or their luck in our raffle! In his inaugural year as ASM Golf Committee Chair, Erik Maseng of Viking Controls expressed his gratitude to the subcontractors and service providers in the room for taking time from their busy schedules to celebrate our collective strength as an industry and to support ASM’s mission. He also had the plea24

Summer 2016

sure of presenting ASM’s 2016 scholarship awards, funded by proceeds from the event.

Five Students Receive ASM Scholarship Awards The thrill of playing the International was matched only by the excitement of our five 2016 scholarship winners (and their proud parents!) who joined us at dinner to receive their $2,000 awards.

ASM’s annual scholarship program recognizes students from ASM member families who have excelled in academic, extra-curricular and community activities throughout their high-school and college years.

This year’s exceptional winners, and the companies behind them, were: Haley DeCristoforo (Allegheny Contract Flooring), who is currently attending the University of New Hampshire; Cassandra Gavin (Central Ceilings), who will begin her studies at Cornell University this fall; Shannon Harney (Frontline, Inc.) who will be attending Colorado State University; Tyler Lajoie (Marsh & McLennan Agency), who starts at Merrimack College in September; and Megan Laurie (Marr Scaffolding), who will soon begin her academic journey at the Massachusetts Maritime Academy.

We congratulate our 2016 Scholarship Award winners, and are delighted to aid in their academic and personal development! s

The Professional Contractor

25

THANK YOU, MAJOR GOLF SPONSORS! Beverage Cart Lockheed Window Corp.

Siemens

Closest To The Line Cutting Edge Environmental Inc. DeSanctis Insurance Agency Inc. Herlihy Insurance Group Rogers & Gray Insurance Agency Closest To The Pin A & A Window Products Inc. Fall River Electrical Associates Inc. Milwaukee Valve Soep Painting Corp.

Course Banners Corwin & Corwin LLP Front Line Inc. Dinner Marsh & McLennan Agency LLC TGA Cross Insurance Field Goal Airgas USA LLC Northeast Region LAN-TEL Communications Inc. Golf Balls Thermo-Dynamics International Inc. Golf Carts E.M. Duggan Inc. Viking Controls Inc.

26

Summer 2016

Grand Raffle Chapman Waterproofing Company New England Mechanical Contractors Association R & R Window Contractors Inc. Wayne J. Griffin Electric Inc. Hole In One Eastern Insurance Group LLC, Construction Division-Natick Long Drive Central Ceilings Inc. Greater Boston Plumbing Contractors Association Limbach New England Lynnwell Associates Inc. Lunch LAN-TEL Communications, Inc. Manganaro Northeast LLC Pin Flags Greenwood Industries Inc. Newman Associates LLC Player Gift Acadia Insurance Practice Tee Alliant Insurance Services Inc. The Suffolk Group Putting Green DeSanctis Insurance Agency Inc.

Raffle Prizes Angelini Plastering Inc. Capone Iron Corp.

The Cheviot Corp.

J.C. Cannistraro LLC KAF Marr Scaffolding Company Milwaukee Tool NorthStar Insurance Services Inc. Reception J.C. Cannistraro LLC McCusker-Gill Inc. Registration E. Amanti & Sons Inc. Scholarships Empire Masonry Corp.

N.B. Kenney Company Inc. R & R Window Contractors Inc. Royal Steam Heater Company Stanley Elevator Company Inc. Stebbins-Duffy Inc. The Sullivan Group William F. Lynch Company Inc. Score Cards PV Sullivan Supply Company Salem Glass Company Silent Auction American Plumbing Company KAF LAN-Tel Communications Inc.

HUMAN RESOURCES

BY KAREN BISCOE, CPC

Re-Energize Your Hiring Strategy

I

t’s summer time and the hiring pace is slowing to a crawl. There are still plenty of great candidates out there, and great jobs too, but keeping the momentum going will be challenging as people check out for R&R, and well-deserved vacations. If you still haven’t found that perfect candidate, how do you keep the traction you have built? It’s not easy but there are a few simple ways to engage active candidates through the dog days of summer, even when it seems all you can hear is crickets. Here’s a few pointers: 1. Use mobile recruiting apps and make sure your site and job listings are mobile friendly.

LinkedIn’s app is quite powerful, but there are many candidate recruiting sites that yield great results with a little effort. Don’t forget to try Facebook, Twitter, Jobvite, etc.

2. If the job has been listed for a while with no activity, it’s gone stale. No one wants a job that’s been out there for six months. Re-write the position summary and it’s more likely to get picked up as a fresh post by aggregating sites like Indeed.

3. Add employee testimonials to your site … why people like their jobs, working for you, and the company overall. It means a lot to hear from your team why someone wants to work there.

4. Check Glassdoor and Salary.com on a regular basis. If former (disgruntled) employees have anything bad to say, they’re going to say it on one of these sites. These are sometimes honest reflections with critical feedback, and that’s fine. No company is perfect. But very negative, one-sided perspectives can sabotage your hiring plans overnight and give your company an undeserved reputation. Contact these

organizations directly and find out what you can do to repair the damage.

5. Do you know how to use Google Advanced Search to find candidates? This allows you to use Boolean terms and focus on specific regions to find “off-grid” candidate resumes. When you gain a bit of expertise, it becomes a powerful and free supplement to your candidate identification efforts.

6. If a position offers flexibility to work remotely, requires national or international travel, or the company provides a strong benefits plan, or a fasttrack to promotion, it’s a good idea to mention any additional perks in the job listing. With population and traffic/commuting headaches on the rise, highlighting a remote-based position will increase attraction and interest in your company.

7. Apply Here/Now must be offered on your mobile site, otherwise, why bother? Candidates prefer the speed and convenience of applying for a job from their mobile device, and may even be restricted from doing so on a work computer.

No matter where they are, if the option to apply on the spot is available, candidates are more likely to respond in kind. Make sure your site is both Android and IOS ready.

There are lots of important tips, ideas and insights on successful mobile recruiting, and if this article got you to think more broadly about your recruiting strategy, then mission accomplished! s Karen Biscoe, CPC, is the founder and principal of Green Search Partner, a Boston-area firm focused on helping companies find talented, qualified, and well-rounded professionals. She can be reached at 781-523-1906 or karen@greensearchpartner.com.

The Professional Contractor

27

ASM NEWS & EVENTS

As part of its annual Safety Week, which helps build and sustain a strong and positive safety culture within the company, J.C. Cannistraro LLC conducted a series of events at its office and its project sites, including ladder safety training at Northeastern University’s Interdisciplinary Science & Engineering Complex, and at MIT’s nanoscale research building.

28

Summer 2016

Along with 54 other contractors, Dec-Tam participated in the Associated General Contractors of MA’s “Day of Service” by improving the Dorchester campus of St. Mary’s Center for Women and Children, a nonprofit that provides programs for those who have experienced trauma and are living in poverty.

To facilitate the significant construction/renovation project through an asbestos abatement project, Dec-Tam pre-cleaned the area, removed all debris, prepped it for containment and established negative air pressure. Subsequently, the company removed 250 linear feet of deteriorating AC pipe insulation and 100 square feet of tank insulation to allow for new and updated plumbing. The end result is an expanded facility, at no cost to St. Mary’s Center, that hundreds of families can call home each year.

S

ubcontractors Work Hard.

You deserve a trade association that works equally as hard.

Benefit from all we offer to help build your business! 

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Connect to best-in-class subcontractors and leading general contractors Have an influential voice on laws, regulations, and tax issues that directly affect your bottom line Learn from the best at our seminars, networking events, and safety roundtables Gain access to our Acadia Insurance program, which has returned over $4 million in dividends

Protect your success: Join ASM Today!!

Learn more at www.associatedsubs.com or call 617-742-3412.

“In Massachusetts, there is no other organization like ASM when it comes to informing subcontractors, and protecting our rights. I can truly say it is the best organization for our company and has been a key to our success.”

– David G. Cannistraro, JC Cannistraro, ASM Past President The Professional Contractor

29

PROJECT PHOTO GALLERY 1A BCM Controls Corporation (Woburn) designed and deployed a cutting-edge security system for the Massachusetts Convention Center Authority’s “Lawn on D,” an experimental outdoor space adjacent to the Boston Convention & Exhibition Center.

1A

1B

1B BCM Controls designed the automation system for Partners HealthCare to control heating, cooling and ventilation in its new 750,000 square-foot Somerville facility.

2 J.C. Cannistraro LLC (Watertown) prefabricated the HVAC riser piping for the Seaport Square mixed-use project in Boston.

The work included creating custom “Riser Assembly Modules” that were shipped to the site and installed by crane.

2

3

4A

4B

3 J.M. Electrical (Lynnfield) installed power & control wiring for the refrigeration system at the Warrior Ice Arena, the Boston Bruins’ new practice facility at Boston Landing in Brighton.

4A The Marr Companies’ specialty shoring company, Isaac Blair & Co. Inc., installed shoring to support the renovation of a ground-floor addition prior to construction of an academic and student-life building at the Berklee College of Music in Boston.

4B The Marr Scaffolding Company’s Mast Climber Division (South Boston) installed three F-200 mast climbers at the Pierce Manor Apartments in Providence, Rhode Island.

4C

4D

4C Marr Scaffolding installed scaffolding at the Plymouth County, Massachusetts courthouse, to be used during the renovation and restoration of the building, which involves masonry work, window replacement, re-roofing the slate roof and refurbishing the cupola to its original condition.

4D Marr Scaffolding’s Aerial Lift Division installed seven swing stages at Yotel, a new hotel being built in Boston’s Seaport District,

by Tishman Construction. Also on site is a Marr Crane & Rigging single 7,000-pound elevator.

5A

4E Marr Crane & Rigging’s Elevator Division installed twin Alimak cars at a tower on Block B in Seaport Square, Boston, for John Moriarty and Associates.

5A Salem Glass Company (Salem) performed significant glass installation work for Lee Kennedy Co. on MIT’s Kresge Auditorium.

4E 30

5B Summer 2016

5B Salem Glass Company served as the glazing contractor on the Lubin-O’Donnell Center at The Winsor School in Boston. s

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