Construction Outlook August 2026

AUGUST | 2026

UCANE’s 47th Annual Golf Tournament Doubles in Size at Pinehills Golf Club

UCANE Interview:

• Another Conference Committee on Deck: UCANE Weighs in on Environmental Bond Bill • The Massachusetts Supreme Judicial Court Issues Anticipated Decision Concerning the Massachusetts Prompt Payment Act

Representative Marjorie Decker

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President CHRIS VALENTI

IN THIS ISSUE 3 President’s Message:

President Elect QUERINO PACELLA

5 Legislative Update:

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Treasurer LISA FRENCH KELLEY

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Secretary JUSTIN GOODHEART

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BOARD OF DIRECTORS MARCELLA ALBANESE

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23 Save the Date: UCANE’s 72nd Annual Banquet 25 UCANE Interview:

JERRY GAGLIARDUCCI

29 Legal Corner:

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• Massachusetts Legislature Ends Formal Sessions; Conference Committee Reports Can Still be Considered • Economic Development Bill Goes to Conference; Issues of Interest to UCANE Contained Within • Another Conference Committee on Deck: UCANE Weighs in on Environmental Bond Bill • Healey Highlights Importance of Investing in Water Infrastructure in Outreach to Trump Administration • News in Brief

Representative Marjorie Decker (25th Middlesex)

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Building Relationships on the Course and Momentum at the State House

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The Massachusetts Supreme Judicial Court Issues Anticipated Decision Concerning the Massachusetts Prompt Payment Act

MARK LANGEVIN

37 Save the Date: UCANE’s Top Golf Event

WILLIAM LEONARD

38 UCANE’s 47th Annual Golf Tournament Doubles in Size at Pinehills Golf Club

Phoenix Communications, Inc. Aqua Line Utility, Inc.

KARIN MARSHALL

Boston Concrete Corp.

MIKE McCARTHY J. Derenzo Co.

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JOHN McGRATH

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MICHELE NORTON

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RICHARD PACELLA, JR. R. M. Pacella, Inc.

57 UCANE’s Safety Corner:

Water Doesn’t Have to Be Deep to Be Deadly

65 UCANE Members Stand Down for Trench Safety 69 Insurance Perspective:

AI Is Coming to the Jobsite, and Your Insurance Program Needs to Keep Up

73 Technology in Construction:

The New Financial Management Option for Small-Business Contractors

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MARK SZELA

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CHRISTOPHER WALSH

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JOSEPH NOLAN

Executive Director

Editor: Joseph F. Nolan; Magazine Designer/Associate Editor: Sherri Klayman; Associate Editor: Suzanne Hatch; Writer: Brandon Ward Construction Outlook Chair: Chris Valenti Editorial Board: Chris Valenti, Querino Pacella, Lisa French Kelley, and Justin Goodheart CONSTRUCTION OUTLOOK published monthly by the Utility Contractors’ Association of New England, Inc., 300 Congress Street, Suite 101, Quincy, MA 02169; Tel: 617.471.9955; Fax: 617.471.8939; Email: jnolan@ucane.com; Website: www.ucane.com. Statements of fact and opinion are those of the authors alone and not necessarily those of UCANE and the Construction Outlook editorial board and staff. Subscriptions are included in dues payments for UCANE members. Presorted Standard postage paid at Brockton, MA. POSTMASTER, please send form #3579 to Construction Outlook, Crown Colony Office Park, 300 Congress Street, Suite 101, Quincy, MA 02169.

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Building Relationships on the Course and Momentum at the State House I hope everyone in the UCANE family is enjoying a safe, healthy, and productive summer. This is one of the busiest stretches of the year for many of our contractor members, and I appreciate the hard work you and your teams are putting in every day to keep critical infrastructure projects moving across New England. I hope you have also found some time to enjoy the season with your families.

O

ne of the highlights of the summer was seeing more than 300 members, industry partners, sponsors, and guests come together for UCANE's Annual Golf Tournament at Pinehills Golf Club in Plymouth.

The incredible turnout made it our largest and most successful tournaments ever. More importantly, it was another reminder that while we're competitors at times, we're also part of a close-knit industry built on relationships, friendships, and helping one another succeed.

On behalf of the Board of Directors, thank you to our Corporate Sponsors, Phoenix Communications and Milton CAT, along with every company and individual who supported this year's tournament. Your generosity allows UCANE to continue advocating for our industry and providing valuable programs for our members. You'll find more photos and coverage elsewhere in this issue.

I'd also like to thank the special guests who helped make the day memorable. Todd Angilly once again delivered a stirring performance of the National Anthem, while Joe Andruzzi and Andrew Brickley spent the day with our members, making an already great event even more enjoyable.

Of course, while events like our golf tournament are a lot of fun, much of UCANE's most important work happens behind the scenes.

The end of this year's legislative session on Beacon Hill brought both challenges and opportunities. Amendments addressing off-site prefabrication, vicarious liability, and a proposed concrete surcharge, surfaced in various forms on both the House and Senate sides, requiring significant attention from UCANE and our legislative team. At the same time, we were pleased to see UCANE-supported language strengthening the Water Infrastructure Advisory Committee advance in the Senate.

AUGUST, 2026

As is often the case with the legislative process, the final result was something of a draw. We didn't win every battle, but we also prevented proposals that could have negatively affected our members. That's the nature of advocacy. Progress often comes one step at a time, and UCANE will continue showing up every day to ensure our industry's voice is heard.

While much of the funding that supports our industry's work has come from Washington through the Infrastructure Investment and Jobs Act, it is encouraging to see water infrastructure becoming a larger part of the conversation here in Massachusetts. That is something UCANE has been advocating for over many decades.

The recent wastewater system failures in the Merrimack Valley reminded everyone just how essential our underground infrastructure really is. Most people never think about these systems until they fail, but our members understand their importance because they build, maintain, and replace them every day. It was especially encouraging to hear Governor Maura Healey recognize the need for greater investment in water infrastructure during remarks at the end of July. We look forward to working with the Administration and Legislature to turn that momentum into meaningful investments that will strengthen our communities, protect public health, and support our economy.

Thank you for everything you do on behalf of our industry and for your continued support of UCANE. Enjoy the rest of the summer, stay safe, and I hope to see many of you at our Central Massachusetts Meeting on August 12 and our TopGolf Event on September 16. n

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Mark Molloy, Esq.

Massachusetts Legislature Ends Formal Sessions; Conference Committee Reports Can Still be Considered

T

he Massachusetts House and Senate concluded their regularly scheduled formal sessions on July 31, closing an active, but manageable period of legislative activity – a difference from previous sessions where major policy initiatives were often unveiled in the later hours of the last day’s session. Traditionally, the July 31 deadline in the second year of the legislative session was a practical cutoff for controversial or wide-reaching legislation because, during informal sessions, a single objection can prevent a bill from advancing. This session, however, the conclusion of formal sessions does not necessarily mark the end of work on every major bill. – as long as the matters were part of a conference committee working to resolve differences between the House and Senate versions of bills.

In particular, conference committees—composed of three representatives and three senators—are responsible for reconciling differences between bills approved by the two branches. Any resulting conference committee report must be accepted or rejected without amendment by both the House and Senate. To that end, approximately a dozen significant matters remain in conference, including economic development, energy affordability, environmental and higher-education infrastructure, primary-care investment, data privacy, public-records reform, student cellphone and social-media policies, protections against AUGUST, 2026

violence toward health care workers, teacher retirement benefits, ballot-question campaign finance reporting, and pet safety. Negotiations will determine whether the competing proposals can be put into final legislation and sent to the Governor or proponents will need to refile matters for the 2027-2028 legislative session.

For the first time, recently adopted Joint Rule 12A expressly permits the House and Senate to return to formal session after July 31 to consider reports from conference committees that were formed on or before the deadline. Post–July 31 formal sessions may also address newly filed appropriation bills and gubernatorial vetoes or recommended amendments. Conference reports remain subject to new transparency requirements: reports filed by 8 p.m. generally must be publicly available for at least 24 hours before a vote, while reports filed after 8 p.m. cannot be considered until the second calendar day following their filing. The revised rules reduce the pressure to resolve every disagreement during the final hours of July 31, allowing negotiators additional time to reach agreements while preserving an opportunity for final, recorded votes later in the year.

It is anticipated that legislators will return to formal sessions to approve a variety of Conference Committee reports before November 7, the date of the upcoming general elections. continued on page 7

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Legislative Update continued from page 5

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Economic Development Bill Goes to Conference; Issues of Interest to UCANE Contained Within

mong one of the Conference Committees appointed to meet before the July 31 deadline was a group of three Representatives and three Senators to hash out differences between their versions of the so-called Mass Wins Act, otherwise known as the economic development bill.

The Massachusetts House of Representatives and Senate have each approved substantially different versions of the Commonwealth’s 2026 economic development legislation, commonly referred to as the Mass Wins Act. Originally filed by the Healey-Driscoll Administration to strengthen Massachusetts’ competitiveness, attract investment, and support emerging industries, the proposal evolved into broad legislative packages addressing housing, transportation, construction, workforce development, and numerous other policy areas.

The House passed its version on July 8 by a vote of 148–2, while the Senate passed its amended version later in July.

Among the House provisions of particular importance to the construction and transportation industries was an amendment extending Massachusetts prevailing-wage requirements to certain customized construction components fabricated away from a public works jobsite. The House adopted the offsite-fabrication proposal as Amendment #99, despite concerns that applying Massachusetts wage, reporting, and compliance requirements to products manufactured outside the Commonwealth could increase public construction costs, disrupt established supply chains, and make specialized materials more difficult to procure. UCANE, joining with other contractor associations as well as business continued on page 9

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Legislative Update continued from page 7 and development associations, continued to fight the overreaching proposal, citing numerous legal concerns in addition to the aforementioned practical concerns.

The House also adopted an important initiative to modernize and improve the Commonwealth’s superload permitting process, which governs the movement of exceptionally large or heavy equipment and materials. The superload modernization, amendment, which would raise the superload weight threshold from 130,000 lbs. to 199,000 lbs., could provide greater consistency, predictability, and efficiency for contractors, manufacturers, utilities and transportation companies undertaking complex infrastructure and economic-development projects.

UCANE, along with the Construction Industries of Massachusetts, the Transportation Association of Massachusetts, and other industry leaders, have supported this initiative.

For its part, the Senate added several transportation-safety provisions to its version of the bill. Amendment #215 would authorize automated speed enforcement in school zones, designated safety zones, and active construction or work zones, subject to operational, privacy, and munic-

AUGUST, 2026

ipal-approval requirements. Supporters argue that automated enforcement can reduce dangerous speeding while limiting the need for police officers to conduct roadside traffic stops in hazardous work areas. The proposal would generally provide an initial warning before monetary penalties are imposed and would place limits on municipal camera deployment, while allowing broader MassDOT use in construction zones. UCANE also supported this initiative, in conjunction with its partner contractor associations, with a joint letter of support to House and Senate leadership prior to the consideration of the economic development bill.

Finally, the Senate also adopted Amendment #160, a more concerning proposal affecting medium- and heavy-duty trucks. The adopted amendment would establish a rebuttable presumption of negligence following certain fatal crashes involving pedestrians, bicyclists, or other vulnerable road users when a truck is not equipped with designated safety equipment, including lateral protective devices or sideguards, backup cameras, convex mirrors, and crossover mirrors. Although filed under the aegis of improving truck safety, using equipment choices to create a presumption of negligence raiscontinued on page 11

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Legislative Update continued from page 9 es significant questions involving federal vehicle standards, due process, insurance coverage, and traditional principles of tort liability. For UCANE’s membership, this language could expose truck operators and businesses to heightened civil liability even when the absence of a particular device did not cause or contribute to a crash. UCANE, as well as medium- and heavy-duty truck users, opposed this amendment.

The aforementioned issues now move to the conference committee, where negotiators must reconcile the House and Senate versions. House members of the Conference Committee include Representatives Aaron Michlewitz, Carole Fiola, and Mike Soter with Senators Barry Finegold, Michael Rodrigues, and Peter Durant filling out the Senate side. The final Conference Committee report, again, likely to be unveiled before the November general election, will determine whether the offsite-fabrication language, superload permitting modernization, automated enforcement provisions, and truck-liability amendment are sent to the Governor for her approval. continued on page 13 We improve the lives of our partners, and our family by going beneath the surface to build America’s essential infrastructure.

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Legislative Update continued from page 11

Another Conference Committee on Deck: UCANE Weighs in on Environmental Bond Bill

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nother Conference Committee of significant interest to UCANE and its membership is the Mass Ready Act, the Commonwealth’s environmental bond bill. The Senate approved approximately $3.94 billion in bonding authorizations, while the House subsequently adopted a roughly $3.5 billion version. Although the two branches differ on funding levels and several policy provisions, both bills share a central objective: creating funding mechanisms for Massachusetts communities to prepare for climate change while protecting drinking water, natural resources, public lands, and essential environmental infrastructure.

Senate Bill 3064, the Senate Environmental Bond Bill proposal, is distinguished by its broad environmental-policy framework, combining infrastructure investment with measures addressing plastics, pollution prevention, climate disclosure, and public access to natural resources. Its ma-

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jor provisions include substantial funding for the Municipal Vulnerability Preparedness program, PFAS remediation, recreational trails, and other resilience initiatives, along with policies concerning single-use plastics, flood-risk disclosure, public beach access, and expedited culvert replacement. The Senate proposal reflects a statewide climate-preparedness strategy focused on reducing pollution, preserving environmental assets, and providing municipalities with resources to respond to flooding, drought, and other climaterelated threats. Of note, the legislation includes a UCANE sponsored amendment expanding the mission of the Water Infrastructure Advisory Committee (WIAC) and the frequency of its meeting schedule.

The House version of the Environmental Bond Bill, House Bill 5518, places particular emphasis continued on page 15

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Legislative Update continued from page 13 on project financing, regulatory modernization, and the timely delivery of infrastructure and development projects. It would establish a Resilience Revolving Fund for municipalities, tribal governments, and public water and wastewater districts; streamline permitting for priority housing, culvert, wetland-restoration, and nature-based resilience projects; and make investments in PFAS cleanup, flood protection, agriculture, forest management, and septic-system improvements in nitrogen-sensitive watersheds. Taken together, the House bill’s principal themes are municipal implementation, infrastructure construction, housing production, and more efficient environmental permitting, while maintaining the Commonwealth’s environmental safeguards.

UCANE supports any and all funding for water infrastructure and environmental resilience but is urging conferees to preserve three provisions of particular importance to water and wastewater systems. First, UCANE supports the Senate language modernizing the WIAC so it can regularly evaluate PFAS treatment, lead-service-line replacement, combined sewer overflows, nutrient management,

biosolids, stormwater obligations, and the financing needed to meet those requirements. Second, UCANE supports the Senate’s higher $450 million water-infrastructure resiliency authorization, particularly as federal assistance declines and municipalities confront increasingly costly mandates.

Finally, UCANE supports creating a commission to develop a coordinated funding and financing plan for wastewater infrastructure and nitrogen reduction in southeastern Massachusetts and the Buzzards Bay watershed. Including these provisions in the final conference report would help transform the Mass Ready Act from a broad environmental commitment into a practical strategy for closing the Commonwealth’s substantial water-infrastructure funding gap.

Similar to the Economic Development Bill, it is anticipated that the Massachusetts legislature will return a completed Conference Committee report on the environmental bond bill before the November elections. To view the Senate proposal, please visit: https://malegislature.gov/Bills/194/S3064.

To view the House proposal, please visit: https:// malegislature.gov/Bills/194/H5518. continued on page 17

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Legislative Update continued from page 15

Healey Highlights Importance of Investing in Water Infrastructure in Outreach to Trump Administration

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t the end of July and following the recent sewer force main break in Haverhill, Governor Maura Healey sent a letter to the Trump Administration in light of proposed cuts that would significantly reduce funding for projects that communities rely on to provide safe drinking water, protect water quality, and modernize aging infrastructure.

Within her letter, Governor Healey highlighted that Massachusetts is home to some of the oldest drinking water and wastewater systems in the nation.

Through the Clean Water and Drinking Water State Revolving Funds (SRF), the state has successfully distributed more than $10 billion in infrastructure improvements serving communities across Massachusetts. Aging drinking water and wastewater systems face challenges from deteriorating pipes, limited capacity, and the growing impacts of our changing climate. President Donald Trump’s proposed budget

cuts would reduce SRF funding by approximately 89%, making it significantly harder for communities to complete critical infrastructure projects.

In tying the letter to the recent incident in Haverhill, Governor Healey pointed out that the consequences of outdated infrastructure are already being felt. Specifically, she noted the 42-inch force main near the South Mill Street Pump Station in Haverhill failing following torrential rainfall, with a second break discovered shortly afterward. While the City worked quickly to install a temporary bypass system, approximately 8 million gallons of untreated wastewater flowed into the Merrimack River each day, prompting temporary beach swimming and shellfish closures in nearby communities. Although force main failures are uncommon, the incident underscores the urgent need to invest in resilient water infrastructure as excontinued on page 19

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Legislative Update continued from page 17 treme weather events become more frequent and severe.

The Governor’s letter further highlighted that Massachusetts communities depend on SRF programs to fund the replacement of aging drinking water systems, modernize wastewater treatment facilities, remove lead service lines, address emerging contaminants such as PFAS, and improve resilience to increasingly frequent extreme weather.

Following the sewer force main failure in Haverhill, the Healey-Driscoll Administration is using SRF funds to support Haverhill’s capital needs. As it is for many states, the SRF program is the state's primary source of financing for drinking water and wastewater infrastructure projects, many of which cost tens or even hundreds of millions of dollars. Without this partnership, many communities would be forced to delay or abandon critical projects, increasing costs, and putting public health and the environment at greater risk.

To view Governor Healey’s letter to the Trump Administration, please visit: https://www.mass.gov/ doc/support-letter-to-epa-july-2026/download. continued on page 21

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•

•

News in Brief

City of Boston Rejiggers Streets Cabinet. Boston Mayor Michelle Wu has reorganized the city’s Streets Cabinet following heightened scrutiny over street safety after cyclist Louisa Gag was killed in a collision with a truck in Mission Hill. Interim Chief of Streets Nick Gove will return to his former position and be replaced by Chris Osgood, an experienced City Hall official who previously served as Boston’s first Chief of Streets under Mayor Marty Walsh and most recently advised Wu on climate resilience and infrastructure. Mayor Wu also appointed Deputy Chief of Policy Tali Robbins as the cabinet’s chief of staff and created a panel of transportation-safety advocates and former public officials to meet weekly and recommend improvements to the cabinet’s management, productivity and delivery of street-safety projects.

Healey-Driscoll Administration Awards Buzzards Bay Land Conservation Grants. The Healey-Driscoll Administration announced $150,000 for land conservation projects in the Buzzards Bay watershed. The Towns of Bourne and Plymouth will each receive $75,000 to permanently protect land at the head of Buttermilk Bay. The Buttermilk Bay Land Conservation Project, a partnership between the Buzzards Bay Coalition (BBC) and the two municipalities, will protect more than 390 acres of forested uplands, cranberry bogs, and wetlands. The BBC will purchase and own

the land, and the Towns of Bourne and Plymouth will hold permanent conservation restrictions on 60 acres and 179 acres, respectively.

•

DOR Reports that July Revenue Exceeds Expectations. The Massachusetts Department of Revenue reported that preliminary tax collections for July 2026 totaled $3.093 billion, an increase of $398 million, or 14.8 percent, compared with July 2025. The yearover-year growth reflected stronger collections from income taxes—including withholding and non-withheld payments—as well as sales and use taxes, corporate and business taxes, and other tax categories; corporate revenue benefited from higher estimated and return payments and lower refunds. A press release from the DOR cautioned that July is typically one of the Commonwealth’s smaller collection months, that fiscal year 2027 revenue benchmarks have not yet been established, and that results from the first month of the fiscal year should not be treated as an indicator of collections for the remainder of the year. The Commonwealth’s revenue projections and receipts are of particular interest as voters will likely consider a ballot initiative determining what the limits for the Commonwealth’s tax collections can be each year before a mandated return to taxpayers is required under Mass. Gen. Laws ch. 62F. n

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Representative Marjorie Decker (D-25th Middlesex)

Representative Marjorie Decker’s career in public service has always been driven by her belief that government should make people's lives better. As the first in her family to graduate from college, and someone who grew up in public housing watching her parents work hard while still struggling to make ends meet, she learned early that policy choices can either expand opportunity or create barriers. Those experiences inspired her to run for office because she saw too many decisions being made about families like hers without families like hers at the table. That commitment continues to guide her work today—whether advancing public health, investing in infrastructure, or strengthening economic opportunity, her goal is to ensure that every community has a voice in the decisions that affect them.

Q:

As costs continue to rise and federal aid decreases, please give your thoughts on how the state will continue to support local aid to cities and towns to help support basic municipal services, specifically water, wastewater, and underground utility infrastructure.

A:

With federal support becoming less reliable and costs continuing to rise, Massachusetts must make strategic investments that maximize the impact of limited resources and protect the services communities depend on. The FY27 budget reflects that approach, providing record local aid, continued Chapter 90 transportation funding, and $63.4 million for the Massachusetts Clean Water Trust to help communities finance drinking water, wastewater, and stormwater projects. Investments in climate resilience, environmental protection, and critical infrastructure recognize that modern water systems are essential not only to public health, but also to housing, economic development, and the long-term competitiveness of our communities.

Q:

Representing the 25th Middlesex District which is comprised of the city of Cambridge, what are the biggest challenges for

AUGUST, 2026

your district and the accompanying region with regard to continued economic growth?

A:

Cambridge has always been a tale of two cities. Our leadership in higher education, health care, and the life sciences fuels tremendous economic growth, but it also drives up the cost of housing, commercial space, and doing business. Our challenge is ensuring that growth doesn't come at the expense of the diverse community that makes Cambridge unique. That means investing in housing, transportation, and the infrastructure that supports both our innovation economy and the residents, small businesses, and workers who keep our city thriving. It also means fighting for fair wages and benefits, and reining in skyrocketing utility bills and childcare costs, so that people can afford to live in the cities where they work.

Q:

The #InvestInWaterMA campaign, sponsored by UCANE, highlights the importance of water infrastructure to a wide variety of industries. Can you share a sampling of some of the specific industries in your district that benefit from investments in water infrastructure? continued on page 27

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Interview continued from page 25

A:

Virtually every sector of Cambridge's economy depends on reliable water infrastructure. Our life sciences and biotechnology companies, hospitals, universities, manufacturers, restaurants, housing developments, and small businesses all rely on dependable water and wastewater systems to operate safely and efficiently. Although much of this infrastructure is underground and often overlooked, it is fundamental to protecting public health, supporting economic growth, and ensuring our region remains competitive.

Q:

Can you share your thoughts on how the construction industry might be able to meet its growing workforce needs as older members of the industry retire?

A:

Meeting the construction industry's workforce needs will require investing in people as well as projects. We need to expand apprentice and pre-apprentice programs across industries and strengthen career and technical education, as part of our commitment to multiple pathways toward fam-

ily-sustaining careers, including for women and other underrepresented groups. I've led efforts to build more apprenticeship and workforce development opportunities in the energy sector and the trades more broadly, so the Commonwealth has the workforce it needs to meet growing demand for housing, infrastructure, and climate projects.

Q: A:

Can you share some of your legislative or regulatory priorities for the 2025-2026 legislative session?

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Construction & Public Contracts Group, Hinckley Allen, LLP

Christopher Morog Partner

Robert T. Ferguson Partner

The Massachusetts Supreme Judicial Court Issues Anticipated Decision Concerning the Massachusetts Prompt Payment Act For the first 12 years since it was enacted in 2010, no Massachusetts appellatelevel court had issued a decision concerning the Massachusetts Prompt Payment Act. After a dozen years, we have now had three appellate-level decisions addressing this statute in the past four years, including most recently, a June 2026 decision of the Massachusetts Supreme Judicial Court (“SJC”).

F

or those who may be unfamiliar, the Massachusetts Prompt Payment Act generally applies to certain private construction projects in excess of $3 Million (but not projects containing 1-4 dwelling units). The statute sets forth specific timeframes and requirements applicable to the review, approval, and rejection of applications for payment and change order requests. To comply with the statute, a rejection must not only be timely, it must be made in writing, set forth the factual and contractual bases for the rejection, and include a certification that the rejection has been made in good faith. Otherwise, the application for payment or the change order request is deemed to be approved under the terms of the statute.

In 2022, the Massachusetts Appeals Court issued a written decision confirming that the statute means what it says: when there has been a failure to comply with the statutory requirements, an application for payment (or change order request for that matter) is deemed to be approved and is therefore due and payable (the “Tocci” case).

The SJC weighed in two years later, in 2024 (the “Graycor” case). The SJC’s decision in Graycor addressed an important question under the statute, namely: whether a general contractor waives its right to assert common-law defenses to payment if the

AUGUST, 2026

general contractor fails to comply with the statutory requirements for rejecting a subcontractor’s applications for payment. The SJC in Graycor concluded that, under the Prompt Pay Act, a party does not automatically waive all common-law defenses by failing to approve or reject an application for payment as required by the statute. However, the SJC determined that in order to preserve its common-law defenses, a contractor that fails to approve or reject a subcontractor’s application for payment in accordance with the statute must: (1) make payment of the “deemed approved” invoice to the subcontractor; and (2) raise its defenses prior to or contemporaneously with the continued on page 31

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Legal Corner continued from page 29 payment of the invoice. The contractor in Graycor did not follow this approach; even after invoices were “deemed approved” under the statute, the contractor had “sought to raise and pursue defenses without ever paying the invoices.” According to the SJC in Graycor: “This it cannot do.”

The SJC in Graycor stated that – in order for the statute to have “meaningful consequences” – “payment of overdue approved invoices must be made prior to, or contemporaneous with, raising commonlaw defenses, or the defenses cannot be raised.”

Otherwise, “[a]llowing common-law defenses to be raised and pursued without paying the now ‘deemed to be approved’ invoices would render this approval to be of no import.”

In a June 2026 decision, the SJC had another opportunity to weigh in on the mechanics of the Prompt Payment Act (the “Columbia” case). The Columbia case involved a payment dispute between a subcontractor and a contractor that had arisen prior to the Tocci and Graycor decisions.

The subcontractor in the Columbia case had billed for change order work. Although the contractor timely rejected those invoices, the contractor “failed to include the certification required by the prompt pay

act that its rejections were made in good faith.” The contractor did not pay the invoices, and the case proceeded to arbitration.

During the arbitration in the Columbia case, the Appeals Court issued its decision in Tocci. With the benefit of the Tocci decision, the arbitrator in the Columbia case ruled that the contractor had violated the Prompt Payment Act by failing to certify that its rejection of the subcontractor’s invoices was made in good faith. Thus, the subcontractor’s invoices were deemed to be approved and the arbitrator ruled that the contractor was required to pay them. In compliance with the arbitrator’s ruling, the contractor paid the subcontractor’s invoices. However, the contractor then asserted a “recoupment” counterclaim against the subcontractor to recoup the amounts that it was ordered to pay in light of the statute. After an evidentiary hearing, the arbitrator determined that the contractor met its burden of proving that the subcontractor’s invoices (which the contractor had by then paid) were not fair and reasonable and ordered the subcontractor to pay a damages award to the contractor.

The subcontractor in Columbia appealed to the Massachusetts Superior Court. “Shortly thereafter,” the SJC issued its decision in Graycor. In light of the SJC’s decision in Graycor, the Superior Court concontinued on page 33

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Legal Corner continued from page 31 cluded that the arbitrator had exceeded its authority when it ultimately ruled that the subcontractor was required to make payment to the contractor. The contractor appealed, leading to the SJC’s decision in Columbia.

The SJC in Columbia restored the arbitrator’s award requiring the subcontractor to make payment to the contractor. In so doing, the SJC in Columbia confirmed that the Prompt Payment Act “does not by its express terms state if or when a recoupment counterclaim may be raised after an invoice is deemed to be approved due to a failure to provide a timely certification in good faith.” The SJC pointed out that its prior decision in Graycor made clear that the statute does not preclude all common law defenses. According to the SJC, the arbitrator’s conclusion that the subcontractor was required to make payment to the contractor did not violate the express terms of the statute.

The SJC in Columbia also concluded that the subcontractor failed to meet its burden of proving that the arbitrator’s award violated public policy. In support of this conclusion, the SJC in Columbia reiterated that “the statute does not address the consequences of the failure to comply fully” with its requirements “except to state that the invoices are deemed approved.”

According to the SJC, the Prompt Payment Act “also does not address whether recoupment claims can nonetheless be pursued.” The SJC concluded that the arbitrator “presciently anticipated Graycor’s central requirement that, when a contractor fails to satisfy all statutory requirements for rejecting a claim, it must pay the disputed amount before asserting defenses.”

The SJC added that the arbitrator “appears to have concluded” that the contractor had acted in good faith and that the subcontractor was “not harmed” by the contractor’s failure to provide good faith certifications “because the certifications would have provided no more information about why the invoices were being rejected than [the subcontractor] had already received.” In these circumstances, the SJC directed the Superior Court to confirm the arbitration award requiring the subcontractor to make payment to the contractor.

With the benefit of these three appellate-level decisions, contractors that perform private construction work subject to the Prompt Payment Act should be mindful of the following takeaway: comply with the applicable statutory requirements. Contractors that receive applications for payment and/or change order requests from their subcontractors should timely and carefully review those applications/requests. In continued on page 35

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Legal Corner continued from page 33 the event there are good faith reasons to reject those applications/requests in whole or in part, contractors should make sure to jump through the required statutory hoops to protect their interests. Any rejections must be timely and in writing. They must explain the factual and contractual bases for the rejection, and they must be certified as made in good faith. A misstep along this process can result in a determination that the subcontractor’s applications/requests are deemed approved and must be paid (even if they may otherwise lack merit).

In these circumstances, contractors performing private work subject to the Prompt Payment Act should undergo training with respect to the applicable statutory requirements so that they can equip themselves to comply with those requirements and protect their interests. Keep in mind also that there is a statutory companion to the Prompt Payment Act addressing substantial completion, applications for retainage and punch list work (the “Retainage Law”). Prompt Payment Act (and Retainage Law) training is particularly important because contractors also stand to benefit from the statutory protections when it comes to contractor applications for payment and change order requests submitted to project owners. n

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UCANE’s 47th Annual Golf Tournament Doubles in Size at Pinehills Golf Club Hosted By

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UCANE’s 47th Annual Golf Tournament marked an exciting new chapter for one of the Association’s most popular traditions, as the event moved to Pinehills Golf Club in Plymouth for the first time.

The move provided UCANE with an opportunity to significantly expand the tournament while continuing to deliver the experience members have enjoyed for nearly five decades. By utilizing both of Pinehills’ 18hole courses, UCANE was able to double the tournament’s capacity, growing from 144 golfers in previous years to an impressive 288 golfers this year.

38

The expanded field brought together contractors, associate members, industry partners, and friends for a full day of golf, networking, and camaraderie. Members were welcomed

by Boston Bruins National Anthem singer Todd Angilly, whose performance helped kick off the day, and had the opportunity to meet and take photos with former New England Patriots standout Joe Andruzzi and Boston Bruins television play-by-play announcer Andy Brickley.

Our sincere thanks to Todd, Joe, and Andy for taking the time to join us and helping make this year's tournament an even more memorable experience for our members and guests.

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With twice as many golfers participating, the move to Pinehills allowed even more members to take part in an event that has long been a highlight of UCANE’s annual calendar.

Congratulations to this year’s winning foursomes from Citrin Cooperman & Company, LLP (Corey McCusker, Jesse Bingaman, David Watson, and Stephen Kelly) and Scrap-It, Inc./Minichiello Bros., Inc. (Fred Rogers, Andy Cunningham, Tony Toscano, and Paul Donovan).

Despite the new venue and much larger field, many aspects of the day remained familiar to long-time participants. Following play, golfers gathered for the traditional post-

AUGUST, 2026

tournament dinner, providing an opportunity to reconnect with colleagues, recognize the day’s winners, and enjoy the always-popular raffle. These traditions helped preserve the character of the tournament even as the event entered a new era.

The success of an event of this size would not be possible without the tremendous support of UCANE’s member companies and sponsors. UCANE extends a sincere thank you to all of the companies that sponsored the tournament and helped make this year’s expanded event a success. A special thank you goes out to our official Tournament continued on page 41

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Golf Tournament continued from page 39 Sponsors, Milton CAT and Phoenix Communications, for their generous support and continued commitment to UCANE and its members.

With 288 golfers, two championship courses, outstanding entertainment, and the same camaraderie that has defined the event for decades, UCANE’s 47th Annual Golf Tournament was undeniably a tremendous success. We look forward to welcoming everyone back for the 48th edition of the tournament on Tuesday, June 22, 2027—so save the date! n

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A special thank you to our sponsors for their continued support of UCANE’s Annual Golf Tournament Hosted By

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M. DiStasio Excavation, Inc. E. J. Prescott, Inc. $25,000 “Hole in One” (2) McCOURT CONSTRUCTION COMPANY $10,000 Putting Contest (2) DAGLE ELECTRICAL CONST. CORP. Chevy Silverado “Hole in One” (2) McLAUGHLIN CHEVROLET “Meet the Pros” Former N.E. Patriot Joe Andruzzi and Former Boston Bruin Andy Brickley CORE & MAIN Golf Quarter Zip Shirts P. GIOIOSO & SONS, INC. Photo’s with Former N.E. Patriot Joe Andruzzi and Former Boston Bruin Andy Brickley RITCHIE BROTHERS AUCTIONEERS/ IRON PLANET “Closest to the Pin” Contest CONCRETE SYSTEMS, INC. Longest Drive (Woman) BISZKO CONTRACTING CORP. Longest Drive (Men) WALSH CONSTRUCTION CO. Continental Breakfast ATS EQUIPMENT, INC. All Signage ROADSAFE TRAFFIC SYSTEMS Lunch AT THE TURN AQUA LINE UTILITY, INC. BMC CORP. HILB NEW ENGLAND 46

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PUTTING GREEN SPONSORS: ACRISURE AQUA LINE UTILITY, INC. B2W SOFTWARE/TRIMBLE CAPE COD WINWATER COMMONWEALTH CONSTRUCTION & UTILITIES CORE & MAIN D’ALLESSANDRO CORP. DEFELICE CORPORATION EQUIPMENT CORP. OF AMERICA (ECA) W. L. FRENCH EXCAVATING CORPORATION GVC CONSTRUCTION, INC. GRANITE CITY ELECTRIC L. GUERINI GROUP, INC. HILB NEW ENGLAND

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Patrick W.Underhill Saltmarsh Blake Corporate Safety Director President Industrial Safety & Rescue J. Derenzo Companies

Water Doesn't Have to Be Deep to Be Deadly Why Utility, DPW, and Highway Crews Must Respect Every Inch of Water Most workers picture drowning happening in a lake, a river or the ocean. In reality, many occupational drownings happen in less than four feet of water, sometimes in only a few inches.

F

or utility crews, DPW employees, highway departments, wastewater operators, and underground contractors, water isn’t an occasional hazard. It’s part of the job, every single day. It collects in open excavations. It flows through culverts. It fills valve pits, catch basins, and utility vaults. During a heavy rain, it can appear where the ground was bone-dry 20 minutes earlier.

Because water is so familiar, it often gets less respect on a jobsite than electricity, traffic, or confinedspace entry. That familiarity has cost Massachusetts workers their lives — not in floods or hurricanes, but on ordinary workdays.

Twelve Feet Down, Gone in Seconds On the morning of October 21, 2016, two workers were working in a roughly 12-foot trench on Dartmouth Street in Boston’s South End when the unsupported walls gave way. The collapse sheared an adjacent fire hydrant supply line. Water and loosened soil poured into the excavation, and within seconds the two men were trapped beneath a rising slurry of mud and water. Neither man survived.

OSHA’s investigation found the contractor had never installed a support system to prevent the cavein, had not trained the crew to recognize the hazard, AUGUST, 2026

and had left the men without a ladder to escape the hole. The agency issued 18 citations and proposed nearly $1.5 million in penalties. The company’s owner was later convicted of manslaughter — and OSHA records showed the same company had been warned about unprotected trenches twice before, in 2007 and 2012.

The lesson from Dartmouth Street isn’t just about shoring, although shoring would have prevented it.

It’s that a trench doesn’t need a river running through it to become a drowning hazard. It only needs a broken water main, a cracked pipe, or a hard rain — and a crew that hasn’t planned for what happens if water shows up. continued on page 59

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Safety Corner continued from page 57 Trench and excavation fatalities aren’t rare, and they aren’t confined to one company or one decade.

Nationally, OSHA has reported roughly two trenchrelated worker deaths every month in recent years, and researchers tracking a decade of cases counted more than 250 nationwide. Massachusetts has now lost crew members to the same underlying combination — unsupported soil and water arriving faster than anyone expected — more than once.

Water Doesn’t Need to Be Deep Many people assume drowning requires deep water. In reality, workers have gone under in less than two feet after slipping on a muddy slope, becoming entangled in debris, getting trapped upside down, or simply

being overcome by current in a confined channel.

Moving water changes the math entirely. Six inches of moving water can knock an adult off balance.

Twelve inches of fast-moving water can carry away most passenger vehicles. A drainage ditch, culvert, or catch basin that looks harmless on a dry Tuesday can turn into a powerful hydraulic system during a storm — strong enough to sweep away tools, equipment, and the people using them.

This isn’t a once-a-decade concern for New England crews. The region has seen its share of intense, fast-moving storm systems in recent years — the kind that can drop several inches of rain in a short window and turn a routine excavation or culvert inspection into an emergency with little warning. A forecast that looked manageable at the start of a shift can look very different two hours later, which is exactly why weather monitoring belongs in the daily hazard assessment, not just the morning briefing.

Cold Water Changes the Equation

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New England crews face a hazard that warmer-climate contractors rarely think about: most of the water on a jobsite here — in a flooded trench, a swollen culvert, a storm-surge catch basin — is cold for most of the working year. Cold water below about 70°F can trigger a cold-shock response within the first minute of immersion: an involuntary gasp reflex, a spike in heart rate and blood pressure, and a sharp drop in the ability to hold your breath or swim in a straight line. None of that requires deep water to be dangerous; it only requires a worker going in over their head, even briefly, in a trench or vault that was never supposed to fill in the first place.

Swim failure follows soon after, as cold muscles and joints stop responding the way they do on land.

A worker who is a strong swimmer in a warm pool can lose the ability to keep their head above water within 10 to 15 minutes in cold water, long before hypothermia itself becomes the primary threat.

For crews working around flooded continued on page 60

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59

Safety Corner continued from page 59 excavations, culverts, or retention basins from fall through spring, that window is the one that matters — and it’s far shorter than most people assume.

The Hidden Hazards Facing DPW and Utility Crews Water rarely acts alone. When crews respond to infrastructure failures, they’re often exposed to several hazards stacked on top of each other.

Flooded excavations are the clearest example. A trench can look perfectly stable until water starts entering it. Water weakens soil, raises hydrostatic pressure behind trench walls, and dramatically increases the odds of a cave-in — while also making it harder for a worker to get solid footing on the way out.

Storm drains and catch basins present a quieter version of the same problem. During heavy rainfall, covers can shift or pop loose, unseen openings develop beneath the floodwater, and powerful suction can build below the surface. A worker clearing debris off a grate may not realize they’re standing directly above a system moving thousands of gallons a minute.

Culverts look harmless in dry weather and become confined, high-velocity channels during storms.

Even an experienced crew can underestimate water velocity, debris impact, sudden surges, and the erosion quietly undermining the embankment they’re standing on.

Sewer systems combine water hazards with everything else that makes confined-space work dangerous: rapidly changing water levels, oxygen deficiency, hydrogen sulfide, and engulfment risk. OSHA has documented fatalities involving sewer workers who were caught by unexpected surges inside manholes and collection systems where proper confinedspace and retrieval procedures weren’t followed.

Energized utilities add another layer that’s easy to miss. Floodwater conducts electricity, and standing water around a damaged transformer, a submerged panel, or a downed line can turn a puddle into a live circuit with no visible warning. Crews trained to treat exposed wiring as dangerous sometimes don’t extend that same instinct to the water pooling nearby — even though the water is often what’s carrying the current.

When the Ground Itself Gives Way Sinkholes belong on this list because they are, almost without exception, a water problem wearing a pavement disguise. A leaking water main or a failing continued on page 61

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AUGUST, 2026

Safety Corner continued from page 60 sewer joint slowly washes soil into the pipe below, hollowing out a void that nobody can see from the surface — until the pavement above it can no longer hold its own weight.

Massachusetts has had a run of them this year alone. A water main break near the Boston Public Garden tore open Park Plaza in April 2026, buckling the roadway and shutting down streets around Arlington and Boylston. That same month, routine maintenance on an MWRA blow-off valve in Lynn caused enough ground settling to flood two nearby businesses. And during a February 2026 nor’easter, multiple water main breaks in Winthrop left part of a neighborhood underwater and swallowed a DPW plow truck in a sinkhole that opened on Marshall Street. None of it took a hurricane — just an old pipe, saturated soil, and time. It isn’t new, either: a 2024 water main break dropped a sinkhole into I-495 in Haverhill, and a failing century-old sewer line in that same city undermined the ground badly enough in 2023 to force 22 residents out of a nearby apartment building.

For a responding crew, a sinkhole is a cave-in risk that started from below instead of from a trench dug on purpose — and the edges are often less

stable than they look, especially once equipment weight is added. Nobody on scene knows for certain what’s under the failed section: a gas main, another buried utility, or simply more washed-out soil that hasn’t caved in yet. Treat the perimeter of any active or suspected sinkhole the way you’d treat an unshored trench — keep personnel and equipment back until the extent of the void is known, and assume there’s more failure underground than what’s visible on the surface. Warning signs worth taking seriously before a full collapse include a new dip or soft spot in pavement, a settling curb or sidewalk, cracking that radiates outward from a low spot, and the sound of running or gurgling water beneath the road with no visible source.

A Cape Cod Reminder — and a Warning About What Water Hides More recently, on November 18, 2025, a Yarmouth sewer-line worksite on South Shore Drive turned deadly when backfilled sand gave way and collapsed into a trench, trapping two workers. One was killed and second worker was rescued after being buried to the waist for more than four hours.

The collapse itself was a soil failure, not a flood. continued on page 63

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Safety Corner continued from page 61 But water was never far from the picture at that jobsite. The Town of Yarmouth’s own legal filings against the contractor, made before the fatal collapse, accused the company of repeatedly flooding the roadway through a faulty dewatering system.

And just 11 months earlier, OSHA had already fined the same company after workers were exposed to arc-flash and shock hazards from electrical extension cords left lying on wet ground at the same worksite.

That last detail is worth sitting with. Wet ground and live electrical cords is exactly the kind of hazard combination water creates without anyone noticing — not a flood, not a drowning, just ordinary dampness turning a routine tool into a shock hazard. Water doesn’t need to be the headline cause of an incident to be a contributing one.

Five Questions Every Crew Should Ask Before anyone approaches standing or moving water, supervisors should walk the crew through five questions. None of them take more than a few minutes to answer, and all five have come up, in one form or another, in the incidents above.

Where can this water go? Storm drains, culverts, and underground piping can redirect flow somewhere else on the site in moments.

Can conditions change suddenly? Weather upstream can affect a jobsite long before rain reaches it directly — monitor conditions continuously, not just at the start of the shift.

What’s beneath the water? Standing water can hide open manholes, broken pavement, washouts, energized utilities, and sharp debris. Never assume you know what’s under the surface.

Do we have a rescue plan? Rescuers become victims more often than most crews realize. Everyone should know who performs rescue, what equipment is on hand, and when to call in specialized rescue resources rather than attempting a rescue themselves.

Are we creating additional hazards? Pumping operations, bypass systems, and temporary dams can change how water moves in ways that show up hours or days later. Think about how today’s work changes tomorrow’s hazard.

Best Practices for Utility and DPW Operations Crews that take water seriously treat it with the same respect given to energized electrical continued on page 64

AUGUST, 2026

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Safety Corner continued from page 63 equipment: • • • • • • • •

64

Perform a dynamic hazard assessment before work begins, and repeat it as conditions change.

Keep workers out of flooded excavations whenever possible, and never enter flowing water without proper training and protective equipment.

Follow confined-space entry procedures for manholes and underground structures, every time — not just when a supervisor is watching.

Inspect culverts before entry and avoid entering during rain events.

Ensure excavation protection remains effective once water is present, not just when the trench is dry.

Treat standing water near any electrical source — panels, cords, damaged lines — as energized until proven otherwise.

Brief new and temporary hires on water hazards specifically; don’t assume general safety orientation covers it.

Establish emergency rescue procedures before work starts, and stop work whenever conditions move beyond the original hazard assessment.

Final Thoughts Water has a way of disguising danger.

It hides holes, weakens trenches, conceals energized equipment, masks swift currents, and changes conditions in seconds. For the utility, highway and public works professionals who maintain New England’s infrastructure, these hazards show up every day — not just during floods or hurricanes.

The three workers all went to work expecting to come home. The safest crews understand that drowning isn’t defined by depth. It’s defined by losing control — of footing, of a rescue, of a plan that should have accounted for water in the first place.

Whether you’re repairing a water main, cleaning a culvert, entering a valve vault, or responding to a storm emergency, remember the simplest safety lesson of all: water doesn’t have to be deep to be deadly. n

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AUGUST, 2026

UCANE Members Stand Down for Trench Safety For utility contractors, working in and around trenches is an everyday part of the job – but it is also one of the construction industry’s most serious hazards. During Trench Safety Stand Down Week, held June 15-19, 2026, UCANE members joined contractors across the country in setting aside time to reinforce the practices that keep employees safe while performing excavation work.

T

he National Utility Contractors Association (NUCA) launched the first Trench Safety Stand Down in 2016 as an industry-wide effort to increase awareness of trenching and excavation hazards. OSHA joined the initiative as a partner the following year, and the annual event has since grown to reach tens of thousands of workers at jobsites nationwide. A stand down can include toolbox talks, employee training, safety demonstrations, reviews of protective systems, or other activities designed to bring crews together to focus on trench and excavation safety.

The message remains critically important. OSHA identifies cave-ins as the greatest threat to workers during trenching operations, while other hazards can include falling loads, hazardous atmospheres, water accumulation, falls, and nearby equipment. OSHA requires protective systems for trenches five feet deep or greater, along with inspections by a competent person and safe means of entering and exiting trenches.

The agency emphasizes three basic methods for preventing cave-ins: slope it, shore it, shield it.

For UCANE members, trench safety has particular significance. Excavation is fundamental to the water, sewer, and heavy construction work our contractors perform every day. Trench Safety Stand Down Week provides an opportunity to not simply review regulations, but to reinforce a safety culture in which every employee understands the hazards, follows established procedures, and has the knowledge to recognize when conditions are unsafe.

UCANE members once again demonstrated that commitment in 2026. Eighteen member companies participated in Trench Safety Stand Down activities across 195 jobsites, reaching a total of 1,469 em-

AUGUST, 2026

Aqua Line Utility Burlington Crew ployees. Participating companies this year included Acme Shorey Precast Co. Inc., Albanese Brothers, Inc., Aqua Line Utility, Inc., Baltazar Contractors, Inc., C. C. Construction, Inc., D’Allessandro Corp., J. Derenzo Co., W. L. French Excavating Corp., GVC Construction, Inc., Lawrence-Lynch Corp., Methuen Construction Co., Inc., Phoenix Communications, Inc., RJV Construction Corp., Robert B. Our Co., Inc., Umbro & Sons Construction Corp., Walsh Contracting Corp., WES Construction Corp., and D. W. White Construction, Inc. Congratulations to J. Derenzo Co. for winning the title of UCANE’s “Top Trench Safety Trainer” for the second year in a row with 324 employees participating this year. In second and third place respectively were W. L. French Excavating Corp. and Robert B. Our Co., Inc. Those numbers represent more than participation in a national safety campaign. Each stand down creates an opportunity for supervisors and employcontinued on page 66

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65

TSSD continued from page 65

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Aqua Line Utility Clinton Crew ees to discuss jobsite conditions, refresh their knowledge, ask questions, and reinforce the expectation that safety comes before production. It also reminds experienced workers and newer employees alike that trench conditions can change quickly and that familiarity with the work should never lead to complacency.

Trench Safety Stand Down Week may last only five days, but its message applies every day of the construction season. UCANE thanks the member companies that participated in 2026 and the safety professionals, supervisors, and employees who continue working to make trench and excavation safety a priority on every jobsite. n

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2026 National Trench Safety Stand Down Week UCANE 2026 Trench Safety Stand Down Week --June 15-19,15-19, 2026 Participation June 2026 Company Acme Shorey Precast Co., Inc. Albanese Brothers, Inc. Aqua Line Utility, Inc. Baltazar Contractors, Inc. C. C. Construction, Inc. D'Allesando Corp.

D.W. White Construction, Inc. GVC Construction, Inc. J. Derenzo Co. Lawrence-Lynch Corp.

Methuen Construction Co., Inc. Phoenix Foundation Co., Inc. RJV Construction Corp.

Robert B. Our Co., Inc. Umbro & Sons Construction Corp.

Walsh Contracting Corp.

WES Construction Corp.

W. L. French Excavating Corp.

TOTAL

AUGUST, 2026

Job Sites

2 3 4 7 12 16 5 2 44 19 11 3 6 15 3 5 8 30 195

Total Participants

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45 24 22 52 81 80 46 30 324 56 100 30 60 166 20 31 39 263 1469

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AUGUST, 2026

Christopher Clark

World Insurance Associates, Inc.

AI Is Coming to the Jobsite, and Your Insurance Program Needs to Keep Up For underground utility contractors, the future of risk management is already here.

I

f you’ve been in construction long enough, you’ve seen technology transform the industry before.

GPS machine control, drones, digital plans, and cloud-based project management have all changed how work gets done.

Now, artificial intelligence (AI) is emerging as the next major shift, and it’s poised to impact everything from project planning and safety to insurance and risk management.

For underground utility contractors, where projects often involve multiple subcontractors, evolving site conditions, heavy equipment, and significant contractual risk, AI presents both opportunities and new exposures.

At the same time, insurance carriers are increasingly leveraging AI to assess risk, price coverage, and process claims.

The question isn't whether AI will affect your business. It's whether you're prepared for the changes ahead.

How Contractors Are Already Using AI Some contractors think of AI as futuristic technology, but it's already finding its way onto jobsites.

AI-powered software is being used to: • Improve estimating accuracy • Predict scheduling conflicts and delays • Optimize labor and equipment allocation • Analyze project budgets and productivity AUGUST, 2026

•

Monitor jobsite safety through cameras and sensors • Review contracts and project documentation Some platforms can even help identify potential project risks before they become costly problems.

For underground utility contractors facing excavation hazards, utility locates, traffic control, environmental concerns, and complex subcontractor coordination, these capabilities can offer valuable insights.

AI may improve efficiency, but it does not eliminate operational or liability risk.

New Technology Creates New Liability Historically, construction risk was largely physical: injuries, equipment accidents, property damage, and construction defects. continued on page 70

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

69

Insurance continued from page 69 Today, technology is creating an entirely new layer of exposure.

• • • • •

What happens if:

An AI scheduling tool causes a critical project delay?

Software generates inaccurate quantities that lead to costly rework?

A drone inspection misses a hazardous condition?

A cyberattack shuts down access to project data?

An AI-powered safety system fails to identify a dangerous excavation condition?

While AI can help reduce losses, mistakes involving technology often fall to the contractor, not the technology vendor.

As contractors adopt more digital tools, cyber liability, professional liability, and technology-related claims are becoming more relevant even for firms that traditionally view themselves as "boots-on-theground" businesses.

How Insurance Is Evolving

advanced analytics.

Today's insurers are using AI and advanced analytics to: •

Evaluate jobsite risks more accurately

•

Review safety records

• • • •

Analyze historical loss trends Identify fraud

Streamline claims handling

Improve underwriting decisions

The goal is better pricing and faster service. Instead of relying solely on broad industry classifications, insurers can increasingly use data-driven insights to assess individual risks.

For contractors with strong safety cultures, good documentation, and effective risk-control practices, that can be positive news.

At the same time, carriers are paying closer attention to emerging risks such as cybersecurity, subcontractor management, environmental exposures, and contractual risk transfer.

In other words, insurance underwriting is becoming more sophisticated and more data-driven.

Many insurers are expanding their use of AI and

continued on page 71

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worldinsurance.com

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Insurance continued from page 70

Why Subcontractor Risk Matters More Than Ever Underground utility contractors rarely work alone.

A single project may involve excavation crews, paving, landscape, traffic-control, trucking companies, and other specialty subcontractors. Each one introduces potential liability to the project.

AI is beginning to help general contractors and specialty contractors manage this complexity. Some compliance platforms can help review certificates of insurance and flag deficiencies. This includes flagging subcontractors who don't meet contractual inBoston Area surance requirements. Locations

This matters because many insurance claims don't originate from your direct operations; they stem from the actions of a subcontractor working under your contract.

Technology can help identify those gaps before they become claims. However, technology should support, not replace, sound subcontractor management practices, contract review, and proper risk transfer strategies.

The Human Element Still Matters

Perhaps the biggest misconception about AI is that it will replace human expertise. In practice, insurance and risk management remain relationshipdriven businesses.

AI can analyze data. It can identify trends. It can process information faster than 2 Dexter Street ever before.

Everett, MA 02149 Area Boston What it cannot do is replace Boston Area Locations Locations the judgment required to navigate 431 Second Street a complex utility project, evaluate Everett, MA 02149 2 Dexter Street 2 Dexter Street contractual obligations, investigate

Everett, MA 02149 Everett, MA 02149 a claim, or understand the unique challenges facing a contractor 431 Second Street 431 Second Street working underground.

Everett, MA 02149 Everett, MA 02149 The contractors who will thrive BOSTON AREA LOCATIONS

in the AI era won't necessarily be 100 Fremont Street 2 Dexter Street 431 Second Street the ones with the most technology.

Worcester, MA 01603 Everett, MA 02149 Everett, MA 02149 They'll be the ones who combine innovative tools with strong operational discipline, sound risk management, and experienced advisors.

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Insurance continued from page 71

The bottom line? AI won't replace good contractors, but it will increasingly differentiate the firms that proactively manage risk from those that rely on yesterday's approaches.

In an industry where margins are tight, and a single claim can have lasting consequences, that may be one of the most valuable advantages of all.

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AUGUST, 2026

John Fingland Trimble

The New Financial Management Option for Small-Business Contractors A simple, construction-specific application can deliver real-time job costing visibility and accounting functionality.

S

mall-business contractors generating under $10 million in annual revenue do the majority of utility projects, and two things tend to be true about people that own them or manage operations. They didn’t get into the business to immerse themselves in the intricacies of financial management and they spend a lot of time trying to figure out if they are making money overall or on a specific job.

These construction experts know that managing jobs successfully in the field does not automatically translate into profitability. Bridging that gap can require what they see as far too much time shuffling through receipts, invoices and timecards, entering and re-entering figures, or fighting with spreadsheets.

Options That Aren’t Optimal A simple, specialized financial management application purpose-built for smaller contractors simply didn’t exist — until now. That left contractors with two far-from-great options for moving past limitations of paper and spreadsheets for financial management and job costing.

At one extreme were full-featured construction accounting or ERP (enterprise resource planning) systems. These robust platforms, essential for large enterprises, are often overkill.

Agility is important. For contractors that don’t AUGUST, 2026

need all the features or don’t have in-house accounting personnel to utilize them, navigating a cumbersome ERP can be like opting for a 50-ton crawler excavator for a small water line repair on a busy city street.

At the other end of the spectrum, off-theshelf accounting systems like QuickBooks aren't made for unique requirements of construction.

They rely on arcane accounting terminology and concepts that most contractors don’t know and don’t want to learn, and they don’t natively track key data like retainage, specific project phases, or construction cost types without significant and frustrating manual workarounds. continued on page 75

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AUGUST, 2026

Technology in Const. continued from page 73

A Simplified, Construction-Specific Application A specialized construction application changes the game. Instead of starting with accounting principals and confusing charts of accounts and reports that have nothing to do with actual jobsites, specialized tools utilize a project-first workflow. Every dollar has a home. From a simple photo taken of a receipt on a mobile phone, an expense can be immediately tagged to a specific job, phase, and cost type. This real-time, activity-based costing delivers simple dashboards showing estimated versus actual costs and the precise financial health of each project or phase.

With interfaces intuitive to users without an accounting background, the application handles basic accounting functions from proposal through reporting and closeout — and including the integration of employee hours. Users can quickly create project cost proposals and streamline billing with customizable schedules and invoicing.

Simplicity from Purchase to Project

A specialized construction application changes the game. Instead of starting with accounting principals and confusing charts of accounts and reports that have nothing to do with actual jobsites, specialized tools utilize a project-first workflow. generic accounting options in favor of a simple, construction-specific application built for their needs gives them the functionality and real-time visibility they need to protect profitability and focus on what they do best: building.

Jon Fingland is a vice president at Trimble focused on finance, HR and project and operations management software solutions. He has over 20 years of industry experience and has played a pivotal role in the Trimble vision of connected construction technology ecosystems, helping to bring together modern technologies and real-time data across the project lifecycle, from design and build to operation and maintenance. n

John Hoadley and Sons Inc. John Hoadley Sons Inc. Water Worksand Specialist

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Advertisers’ Index 21st Century Concrete, Inc.................................................................... 76 ATS Equipment, Inc. .............................................................................. 30 Acrisure..................................................................................................... 31 Allegiance Trucks.................................................................................... 35 Badger Daylighting................................................................................. 32 The Baldwin Group................................................................................. 21 Benevento Companies............................................................................ 66 Blue Collar Customs................................................................................. 4 Boro Sand & Stone Corp........................................................................ 72 Dennis K. Burke, Inc............................................................................... 58 Concrete Systems, Inc....................................................Inside Back Cvr. 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Edwards, Inc.................................................................................... 68 Ferri Equipment....................................................................................... 63 Genalco, Inc.............................................................................................. 13 Granite City Electric............................................................................... 14 L. Guerini Group, Inc............................................................................. 67 Henniker Directional Drilling, LLC.................................................... 17 Hinckley Allen LLP................................................................................. 26 John Hoadley & Sons, Inc...................................................................... 75 P. A. 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J. Prescott, Inc................................................................ Ins. Front Cvr. Rain For Rent-New England.................................................................. 16 Read Custom Soils................................................................................... 11 Scituate Concrete Products Corp......................................................... 52 Scrap It, Inc............................................................................................... 71 Shea Concrete Products, Inc. ................................................................ 40 SITECH New England............................................................................ 18 Starkweather & Shepley Ins. 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N. Wood Co., Inc. .............................................................................. 22 World Insurance Associates LLC......................................................... 70

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