Construction Outlook October 2019

OCT | 2019

Barletta Engineering/Heavy Division Tackles CSO Project in Somerville

• Baker-Polito A dministration Files Supplemental Budget to Close FY19; Includes Significant Water Infrastructure Funding • To Protest or Not to Protest: Failure to Acknowledge an A ddendum

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Years of Excellence 1954-2019

OCTOBER, 2019

IN THIS ISSUE

OFFICERS President RICHARD PACELLA, JR.

5 President’s Message:

President-Elect MARCELLA ALBANESE

7 Legislative Update:

R. M. Pacella, Inc.

Albanese Brothers, Inc.

Treasurer RYAN McCOURT

McCourt Construction Company

Secretary BRIAN COONEY

C. C.Construction Inc.

BOARD OF DIRECTORS VINCENT BARLETTA

Barletta Heavy Division

NICK BIELLO

J. D’Amico, Inc.

MIKE BISZKO, III

Biszko Contracting Corp.

TONY BORRELLI

Celco Construction Corp.

BEN CAVALLO

C&S Insurance Agency

ANDREW DANIELS J. Derenzo Co.

GEORGE DeFELICE

DeFelice Corporation

JERRY GAGLIARDUCCI

Gagliarducci Construction, Inc.

NICK GAMACHE

Rain for Rent - New England

MARCO GIOIOSO

P. Gioioso & Sons, Inc.

MIKE GORMAN

E. J. Prescott, Inc.

DAN HORGAN

R. H. White Const. Co., Inc.

BILL LEONARD

Aqua Line Utility, Inc.

JOHN OUR

Robert B. Our Co., Inc.

QUERINO PACELLA

RJV Construction Corp.

BRIAN RAWSTON

Jay Cashman, Inc.

PAUL SCENNA

Albanese D&S, Inc.

DAVID WALSH

Pawtucket Hot Mix Asphalt

ANNE KLAYMAN

Executive Director

JEFF MAHONEY

Assistant Executive Director

As Work Gets Done, Planning for 2020 Underway • Clean Water Trust Awards Over $21 Million in Municipal Water Project Grants • Baker-Polito Administration Files Supplemental Budget to Close FY19; Includes Significant Water Infrastructure Funding • MassDEP Releases Draft 10-Year Solid Waste Master Plan; Public Hearings Scheduled • News in Brief: Personnel Changes

19 Legal Corner:

To Protest or Not to Protest: Failure to Acknowledge an Addendum

23 Under the Hard Hat with UCANE’s Officers & Board Members: Q&A with UCANE Board Member Mike Biszko III, Biszko Contracting Corp.

27 What Values & Principles Matter to Your Company?

33 U.S. Department of Labor Approves New Respirator Fit Testing Protocols to Protect Workers from Airborne Contaminants 35 Tyngsboro Officials Celebrate Groundbreaking of Water/Sewer Project 37 Safety Corner: Hiring a New Safety Manager

39 The Massachusetts RMV Driver Verification System 41 In Memoriam: Paul W. D’Amico, J. D’Amico, Inc.

42 Barletta Engineering/Heavy Division Tackles CSO Project in Somerville 47 Construction Safety & Compliance: An Interview with Tim Hunt, Director of Environmental, Health and Safety, W. L. French Excavating Corporation

52 UCANE’s September Dinner Meeting:

MHA, NBM, and UCANE Partner for Panel Discussion

57 Are You Prepared for an OSHA Visit?

63 Insurance Perspective:

The Optional Coverages - Are They Really Optional?

71 Spotlight on Cape Cod:

Regional Sewer Plant Plans Gain Steam

73 Retirement Plans for Small Businesses Editor: Anne Klayman, Associate Editor: Suzanne Hatch, Magazine Designer/Assistant Editor: Sherri Klayman Construction Outlook Chairman: Richard Pacella, Jr. Editorial Board: Richard Pacella, Jr., Marcella Albanese, Ryan McCourt, and Brian Cooney 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: aklayman@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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As Works Gets Done, Planning for 2020 Underway Living and working in New England, we never know what the weather will bring us, especially this time of year. Fortunately, we have been experiencing some ideal fall weather, but I also have to reluctantly report that the first deep freeze will be upon us in the not so distant future. So I hope everyone is still busy as we head into the home stretch of this construction season. And while we work hard to close the books on this year, it’s never too early to look ahead to 2020.

D

uring the fall, MassDEP is busy going through applications submitted by cities, towns, and authorities to qualify for a SRF loan to fund water infrastructure projects throughout the state. Those projects that eventually qualify will appear on the 2020 Intended Use Plan (IUP), which UCANE publishes every year in Construction Outlook magazine.

These projects then need to be approved by town meetings or city councils before they receive funding and are put out to bid. The 2019 IUP contained 66 new projects from towns all over the state, from Nantucket to Great Barrington, at a cost of over $700 million. These are the jobs that are coming out to bid now and into next year.

Several other municipalities have made water infrastructure a priority for their deliberations in 2020. It is no secret that Cape Cod needs to continue to move forward and make progress on their wastewater issues after years of inaction. The town of Barnstable recently released a comprehensive plan that estimates the cost to be $1 billion over the next 30 years to address their wastewater needs. Other Cape Cod towns, such as Mashpee, Dennis, Harwich, and Yarmouth are also moving forward. The Cape is hardly alone in dealing with water quality issues, as towns all across the state, such as Scituate and Hardwick, need to fund projects in the near future. And leaders in the Merrimack Valley recently formally established the Merrimack Valley River Commission to begin to address the combined sewer overflow (CSO) issues

OCTOBER, 2019

facing the region, and the over 800 million gallons of raw sewage that is discharged into the river every year. Many other municipalities want to update and upgrade their water infrastructure to further their economic development opportunities.

As always, funding will be needed for these projects. UCANE will continue to lobby for additional monies and incentives to ensure jobs go out to bid.

And we have seen some success. We are very grateful to Governor Baker for recommending an additional $35 million for the Clean Water Trust. He also has appropriated money to begin to deal with the emerging PFAS contamination problem, recommending close to $30 million for testing and remediation. Cape Cod will have a dedicated revenue stream for water infrastructure, as a short term rental tax has been implemented, a portion of which will go directly to water infrastructure projects. And at the federal level, Congress approved, and the President signed a bill, backed by UCANE through the Clean Water Construction Coalition, that will allow states to make a onetime transfer of up to $100 million from their Clean Water SRF to the Drinking Water SRF so that states will have some flexibility and be able to maximize the use of federal funds for construction.

In conclusion, as members are rightfully focused on completing the job at hand, UCANE continues to work to assure that there will be adequate funding in 2020 to update and/or replace our outdated underground infrastructure. n

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Clean Water Trust Awards Over $21 Million in Municipal Water Project Grants

A

ccording to a September press release from the Office of the Treasurer, the Massachusetts Clean Water Trust (CWT) announced more than $21.5 million in loan forgiveness for 31 projects in 20 communities across the Commonwealth. The loan forgiveness funds are administered on a competitive basis to cities, towns, and water districts most in need of financial assistance to help pay for improvements to drinking water and wastewater infrastructure.

The CWT improves the water quality in the Commonwealth through the provision of low-cost capital financing to cities, towns, and other eligible entities. Because of the reduction of loan principal funded by this program, impacted communities will see their bi-annual loan repayments reduced, freeing up capital for other local needs. The loans were originated to pay for municipal water projects such as upgrades to water treatment facilities, stormwater and nutrient mitigation, and sewer improvement projects.

The communities earning loan forgiveness grants were: Adams Fire District, Barnstable, Brockton, Dartmouth, Fall River, Gloucester, Goshen, Harwich, Haverhill, Hull, Lawrence, Lowell, Norton, Pepperell, Pittsfield, Revere, Southampton, Spencer, Springfield Water & Sewer Commission, and Taunton.

Some of the projects, included, but were not limited to:

•

Harwich Sewer Collection System - Phase 2 (Harwich: $568,522). The Town of Harwich will be implementing Phase 2 of their Comprehensive Wastewater Management Plan and will be installing a sewer collection system in the Pleasant Bay Watershed. After a 400% population increase

OCTOBER, 2019

since 1951, the Town has seen water quality issues due to septic systems releasing nutrients, which infiltrate into the ground and overfertilize water bodies, resulting in degraded water quality.

Wastewater collected in Pleasant Bay in Harwich will be treated at the existing Chatham Water Pollution Control Facility. The Towns of Harwich and Chatham have signed an intermunicipal agreement to work together to meet their shared goals of the Pleasant Bay total maximum daily load and to protect their resources, which include drinking water supply wells.

•

Sewer and Drainage Improvements (Lawrence: $814,672). This project will rehabilitate and replace sewer system defects along with the operational and maintenance issues that are identified in the sewer system evaluation survey report. The sewer and drainage system improvements will address structural pipe failures, reduce infiltration and inflow sources, and abate illicit cross connectors to the municipal separate storm sewer system areas.

•

Wastewater Treatment Plant Nutrient Removal (Pittsfield: $3,721,701). This project is to upgrade the wastewater treatment plant (WWTP) to achieve compliance with National Pollution Discharge Elimination System permit limits and an Administrative Order (CWA01-15-014) issued by the EPA. The project will optimize the nitrogen removal process and result in reductions of phosphorus and aluminum discharges to the Upper Housatonic River Area of Critical Environmental Concern and remediate documented nutrient enrichment in the downstream Wood’s Pond impoundment. continued on page 9

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Legislative Update continued from page 7 Four major component projects are necessary to achieve compliance: Tertiary Treatment Upgrade, Sludge Dewatering Upgrade, Nitrogen Removal Upgrade (Phase I), and Secondary Clarifiers Upgrade. The project components are consistent with the plant needs and energy efficiency improvements identified in the recently updated WWTP Facilities Plan.

The $21.5 million in loan forgiveness funds

is associated with a total original loan amount of more than $326 million. The CWT lends financial assistance to communities in the Commonwealth under the State Revolving Fund program, which offers subsidized loans to cities, towns, and water utilities to help protect and improve their water infrastructure.

To view the entire list of communities receiving grants, please visit: https://www.mass.gov/files/ documents/2019/09/13/2018%20Loan%20Forgiveness%20Project%20Desc.pdf. continued on page 11

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Legislative Update continued from page 9

Baker-Polito Administration Files Supplemental Budget to Close FY19; Includes Significant Water Infrastructure Funding

A

s widely reported, the Baker-Polito Administration filed a $651 million supplemental budget bill that also makes investments in a wide range of areas including infrastructure, education, and support for cities and towns. The bill calls for using the fiscal year 2019 surplus to achieve a balance of $3 billion within the Commonwealth’s Stablization Fund, the largest balance since the fund was created, by inserting an additional $167 million into the fund.

The Administration’s proposal also calls for setting the 2020 Part B income tax rate at 5.0% — bypassing the remaining revenue tests that the Commonwealth otherwise would be required to pass before the rate is reduced to that level. The bill further proposes a doubling of the income tax exemption for dependents, from $1,000 per dependent to $2,000, resulting in a direct additional benefit for 1 million taxpayers who have children, or care for dependent relatives who are elderly or have a disability, of approximately $50 per dependent. To support the increase, the budget calls for a one-time deposit of $175 million from the fiscal year 2019 surplus into the Tax Reduction Fund.

That funding would support two years of deductions at the higher rate, without any impact on the fiscal year 2020 or fiscal year 2021 budgets, and would provide a sufficient transition period until the higher exemption can be incorporated into future budget assumptions. The $2,000 per dependent exemption is estimated to reduce tax collections by $87 million per year.

Of particular note to UCANE members, the Administration’s supplemental budget also provides more than $100 million in overall infrastructure spending, including $50.5 million in grants to cities and towns for local road and bridge improvements and more than $60 million in investments related to clean drinking water, including funding for perand polyfluoroalkyl substances (PFAS) testing and mitigation. In supporting the Administration’s proposal in a letter to the House and Senate Committees on Ways and Means, the Water Infrastructure Alliance wrote that it urged the Committees “to include funding for the Clean Water Trust’s efforts OCTOBER, 2019

to meet the Commonwealth’s overall water infrastructure needs, address the presence of per- and polyfluoroalkyl substances (PFAS) in certain water supplies, and the discovery of lead in school water fountains.”

In total, the supplemental budget bill consists of $648 million in supplemental appropriations, at a net state cost of $429 million. After accounting for certain outside sections, the total fiscal impact of the bill is $651 million. The legislation, known within the State House as a “deficiency budget,” will close the books on fiscal year 2019, which ended June 30. According to the Massachusetts Department of Revenue, tax collections for the previous fiscal year were $1.1 billion above budget estimates. continued on page 13

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Legislative Update continued from page 11

MassDEP Releases Draft 10-Year Solid Waste Master Plan; Public Hearings Scheduled

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he Massachusetts Department of Environmental Protection (MassDEP) issued its Draft 2020-2030 Solid Waste Master Plan at the end of September. The proposal seeks to increase diversion of food material, textiles and bulky waste items, provide financial and technical assistance for municipal waste and recycling programs, and enhance compliance and enforcement of waste disposal bans. A public comment period on the draft runs through Friday, December 6, 2019, and includes five public hearings across the Commonwealth.

The Solid Waste Master Plan establishes the Commonwealth’s policy framework for reducing and managing solid waste that is generated, reused, recycled, or disposed of by Massachusetts residents and businesses. The Draft 2020-2030 Plan proposes a broad vision for and strategies on how the Commonwealth will seek to manage

its waste over the next decade and beyond.

According to the MassDEP press release accompanying the draft master plan, from 2008 to 2018, Massachusetts’ per capita disposal dropped by 18 percent. The new plan proposes to build on this progress and further reduce the current annual total of 5.7 million tons of solid waste disposal by 1.7 million tons or 30 percent by 2030. The plan also proposes an aggressive longer-term goal to reduce trash disposal by 90 percent by 2050.

Initiatives included in the draft plan will: • Increase requirements on the diversion of commercial food material from disposal; • Improve the performance of recycling facilities handling construction and demolition materials;

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Legislative Update continued from page 13 •

Provide financial and technical assistance to enhance municipal solid waste and recycling programs; • Target the reuse and recycling of textiles, mattresses, and other bulky waste items; • Enhance compliance and enforcement of existing waste disposal bans and pursue additional bans on target materials; and • Advance adoption of extended producerresponsibility systems for select materials.

The draft plan takes a balanced approach to meeting Massachusetts’ capacity needs for waste materials. This approach includes fostering opportunities to reduce waste up-front through source reduction and reuse, growing in-state capacity and markets to manage recyclables and food materials, and maintaining the moratorium on additional municipal waste combustion capacity.

MassDEP has scheduled the following public hearings: • Wednesday, October 30, 2019 at 5 p.m.

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at the MassDEP Central Regional Office, 8 New Bond Street, Worcester; • Wednesday, November 6, 2019 at 5 p.m. at the MassDEP Northeast Regional Office, 205B Lowell Street, Wilmington; • Thursday, November 7, 2019 at 10 a.m. at the MassDEP Headquarters Office, 1 Winter Street, Boston; • Tuesday, November 12, 2019 at 5 p.m. at the Springfield City Library, Sixteen Acres Branch, 1187 Parker Street, Springfield; and • Tuesday, November 19, 2019 at 5 p.m. at the MassDEP Southeast Regional Office, 20 Riverside Drive, Lakeville.

MassDEP will accept comments on the draft plan through 5 p.m. on Friday, December 6, 2019.

Comments on the draft plan can be submitted via e-mail to dep.swmp@mass.gov or via the mail to: John Fischer, Massachusetts Department of Environmental Protection, 1 Winter Street, Boston, MA 02108. Copies of the draft plan are available at: www.mass.gov/guides/solid-waste-master-plan. continued on page 17

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Legislative Update continued from page 15

News in Brief: Personnel Changes

•

•

•

New DCR Commissioner Appointed. Department of Conservation and Recreation (DCR) Commissioner Leo Roy announced his departure from the agency after serving for three and a half years. Executive Office of Energy and Environmental Affairs Secretary Kathleen Theoharides named Mr. Jim Montgomery, the existing Director of Administration and Finance at DCR, as interim commissioner. DCR oversees the 450,000-acre state parks system that also includes pools, beaches, and skating rinks. Mr. Montgomery, who joined DCR in 2016, previously worked as Administration and Finance Director for emergency medical services for the City of Boston.

Baskin Appointed Assistant Commissioner for the MassDEP’s Bureau of Water Resources. Before August, MassDEP Commissioner Martin Suuberg announced the appointment of Ms. Kathleen Baskin to serve as Assistant Commissioner for the Bureau of Water Resources at MassDEP. Ms. Baskin previously worked as Director of Water Policy for the Executive Office of Energy and Environmental Affairs, where she served for 11 years until 2016. She has also worked on water resource issues as an advocate for the Charles River Watershed Association and as a consultant, most recently for Weston & Sampson. Her public service also includes past membership on her local conservation commission. Ms. Baskin completed her undergraduate education at Tufts University, where she also received a Master’s degree in Environmental Engineering. In addition, she holds a Master’s in Public Administration from the Harvard Kennedy School of Government.

Representative Meschino Participated in Council of State Governments Henry Toll Fellow Program. The Council of State Governments (CSG) announced that Representative Joan Meschino, from Hull, was among the class of 48 officials from 33 states who participated in a Council of State Governments Henry Toll fellowship program in August. The program, which is designed to expand leadership skills and empower the fellows to navigate complex public policy challenges more effectively, is named after Henry Toll, who founded the CSG in 1933. Representative Meschino serves on the Joint Committee on Telecommunication, Utilities and Energy as well as the Joint Committee on Veterans and the House Post Audit and Oversight Committee.

OCTOBER, 2019

•

•

Governor’s Legislative Director Goes to the Private Sector. After an excellent record of 10 years of public service, the Governor’s Legislative Director, Ms. Kaitlyn Sprague, Esq., recently announced her decision to leave the Governor’s Office. The former legislative director to House Minority Leader Brad Jones, Sprague developed a reputation for hard work, reliable information, and an overall high work quality. The Governor’s Office announced that Jimmy Cowdell, the Governor's Deputy Legislative Director, is taking over Sprague's role on an interim basis.

Rainey Announced as MassDEP Director of Municipal Partnerships. Representative Kate Hogan’s Chief of Staff Courtney Rainey was recently announced, by the MassDEP Commissioner Martin Suuberg, as the agency's new Director of Municipal Partnerships and government affairs. Ms. Rainey, who served under Division Chair Hogan for six years, will work with municipalities and elected officials to navigate the myriad of the DEP’s programs. A Long Island native, Ms. Rainey holds a bachelor's degree in political science, public policy and administration from Northeastern University. n

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To Protest or Not to Protest: Failure to Acknowledge an Addendum More and more it seems that no Massachusetts public procurement is complete without some bid error or discrepancy. And because disappointed bidders are constantly looking for ways to invalidate a low bid, the chances are fairly high that they may spot an irregularity. The question then becomes whether that irregularity is significant enough to invalidate the low bid. This question depends on the facts of each case. That said, the decisions of the Bid Unit of the Massachusetts Office of the Attorney General (“Bid Unit”) provide helpful guidance on a wide array of issues. In one recent case, the Bid Unit addressed whether a low bidder’s failure to acknowledge an addendum justified rejection of the low bid.

T

he case arose out of a project for installation of new kitchen equipment and related improvements for a public school system. The awarding authority issued an initial set of bid documents, followed by three separate addenda modifying, amending, or supplementing various parts of the contract documents.

The awarding authority received four bids.

The lowest bid was $1,572,981 and the delta between the two lowest bids was $96,019. Although the low bidder acknowledged the second and third addenda, the low bidder failed to acknowledge the first addendum. As a result, the second-low bidder asserted that the awarding authority must reject the low bid.

The parties “vigorously disputed” the value of the work added by the first addendum.

The awarding authority estimated the value at $33,778, while the protestor asserted that the OCTOBER, 2019

value of the addendum was $101,048. The Bid Unit determined that the protestor did not meet its burden of demonstrating that the awarding authority’s estimate was arbitrary. But the analysis did not end there.

The Bid Unit noted that “[a] bid that fails to acknowledge an addendum that affects the price or scope of the relevant work must be rejected in

continued on page 21

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Legal Corner continued from page 19 most cases.” But the Bid Unit noted an exception to this general rule, where the costs of the items associated with the addendum are insignificant.

But this determination depends on the specific facts of each case.

In this case, the $33,778 addendum clearly affected the price and scope of the work. But because the value of the addendum was less than the delta between the two bids, the Bid Unit determined that the awarding authority could nevertheless treat the failure to acknowledge the addendum as a minor informality that the awarding authority could waive. In reaching this decision, the Bid Unit relied on a case involving the failure to acknowledge a $60,000 addendum where there was a $241,000 delta between the bidders. Although the value of the addendum was not insignificant in and of itself, it could be treated as a minor informality because it did not change the order of the bidders.

Using this same analysis, the Bid Unit denied the protest stating that the protestor “has not cited any court decisions or Bid Protest Deci-

sions that reject the premise that the cost differential should be analyzed in terms of whether the bid order has been affected by the bidder’s failure to acknowledge an addendum.”

Based on this decision, the Bid Unit will likely engage in a two-part analysis when it comes to failures to acknowledge addenda. The Bid Unit will first consider whether the addendum affects the price or scope of the work. If not, then the failure will likely be deemed a waivable informality. But if the addendum does affect the price or scope of the work, the Bid Unit will likely look to the delta between the bidders in question. If acknowledgement of the addendum would not change the order of the bidders, the Bid Unit may determine that the failure to acknowledge is nevertheless waivable. n

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How did you get started in the underground construction industry and what was your first job?

I started in the underground construction industry through our family owned company Biszko Contracting Corp. My first job was working in the garage assisting the mechanics, loading equipment and materials out of the yard when I was in high school.

How long have you been with Biszko Contracting Corp. and what is your role in the company today?

I’ve been working in the family business for about 20 years now. Like any small businessman I wear a lot of hats.

I’m now a Corporate Officer and dedicate most of my time to managing projects, bidding new work, and keeping our business moving forward.

How long have you been involved with UCANE and why did you decide to get involved with UCANE? Biszko Contracting was invited to join UCANE by Bill Smith – Trench Box Rentals. I went to a couple of dinner meetings and then attended a Government Relations Committee Meeting. I was impressed with the way the meetings were run and met some of my peers that I respected very much. I began to attend more Board meetings and within a couple of years I was asked to be a Board member. I am proud to be a UCANE member going on 10 years now.

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UCANE Board Member Michael Biszko III Biszko Contracting Corp.

What is the nature of the industry as you currently see it?

The industry is continuously changing and it is getting more difficult to navigate through the increasing maze of regulations. The upcoming years are going to be not only difficult because of increased regulations but due to the lack of qualified help.

What would you like our membership to know about being a Board Member?

The UCANE Board of Directors is not only made up of members from large corporations but also from small fam-

continued on page 25

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Under the Hard Hat continued from page 23 ily owned businesses. We all get a chance to express our views and concerns and have input on current issues and everyone has an equal vote.

The Board’s decisions are always in the best interest of the industry, as opposed to favoring any individual firm. I leave every Board meeting with new information that can help my company. n The UCANE Board of Directors is not only made up of members from large corporations but also from small family owned businesses.

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OCTOBER, 2019

What Values & Principles Matter to Your Company?

Have you ever played on a team where there was one player who was a bad apple, didn’t play fair, or didn’t follow the team’s vision for success? Or have you worked with a fellow employee who had a bad attitude and constantly complained about the company and managers? Or been on a crew with one person who didn’t carry their weight or work as hard as everyone else? Or worked for a company where one old timer is not required to follow the company rules, learn new systems or technology, and seems to have his own set of special rules?

These anti-team players pull down the entire team and make everyone’s life miserable. To grow a flourishing garden, you have to cut out the irregular branches and regularly trim out deadwood to get the plants to thrive, bloom, and reach their potential. And with a team or company, you have to have everyone working together, following the same rules, with positive attitudes, to achieve the highest results possible and win the game. To make this happen takes a clear understanding of what your company rules are, what basic principles you stand for, what kind of people you want working together in your company, and how you expect your team to work with each other and treat your customers, vendors, and subcontractors.

What Do You Stand For? What basic business ethics, intrinsic values, and internal principles does your company and people stand for? A very important component of building a great company is defining, knowing, and monitoring your business principles or core values. I call these your BIZ-Principles.

BIZ-Principles - Basic core values, beliefs & standards.

- What really matters to our company.

- Our fundamentals, principles & guidelines.

- What we stand for, driving forces & qualities.

After determining and outlining your company’s five year BIZ-Vision, you must next identify and decide what your company stands for and what beliefs are important to you, your company, and employees.

And how you want to treat customers and other companies you deal with. By defining these basic principles or core values, they will act as guides to keep OCTOBER, 2019

you on the right track for future decisions, choices, dilemmas, personnel issues, and challenges you face. Your BIZ-Principles will act as a filter or sieve when addressing employees who don’t match your values, dealing with customers who don’t have the same beliefs as you, or deciding on which direction you should go on important matters that may fall into tough grey areas.

For example, if one of your basic core values is teamwork and being a team player, keeping people hired who have bad attitudes, won’t follow company standards, or continue to disrupt the flow of progress doesn’t fit within your BIZ-Principles and therefore these bad apples shouldn’t work for your company.

If a core value is to be accountable for results, and a field crew foreman continually makes excuses for not meeting his project schedule or production goals, he can’t continue to work at your company without major improvement in his attitude or results. If one of your basic principles is attention to detail, and an experienced long-time field superintendent continually has long completion punch-lists after every project, he should be given the chance to improve or shown continued on page 29

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Values & Principles continued from page 27 the door if there is resistance without improvement. If one of your basic values is continuous improvement and willingness to change, and a longtime manager is really good at running jobs and completing them on-time, but he won’t improve or learn the new software systems or do his paperwork per company standards, he then shouldn’t be allowed to continue on this downward special treatment spiral hindering and holding back the overall progress of your company.

Having clearly defined BIZ-Principles or core values will help you make good decisions about how to lead, run, and manage your company, people, priorities, and projects. There are no exceptions to your principles. For example, full-value means giving fair prices on change orders to customers. Following company standards means everyone follows the rules, not just a few. Take ownership and act to find solutions means not calling your supervisor to get approval on every small decision ten times a day.

Honesty and do what you say means telling the truth about the schedule, late or on-time and then doing whatever it takes to achieve the agreed upon deadlines versus telling customers what they want to hear.

Achieve winning results means knowing the production budget and working hard to achieve it without excuses.

Draft Your BIZ-Principles Get your key managers and leadership team together to determine your overall company core values and principles. Give everyone the following list of values to consider and ask them to select their top five: __ Integrity & Honesty __ Excellence & High Standards __ Customer First __ Focused On Profitable Growth __ Quality & Attention To Detail __ Laser-Like Focus To Achieve Results __ Strong Leadership & Planning __ Decisive, Disciplined & Strategic __ Professional, Competent & Experts __ Follow Company Standards & Systems __ Confident, Competitive & Motivated __ Dependable & Loyal __ Pro-Active Decisive Problem Solver __ Goal, Results & Solution Driven __ Full-Value __ Full-Service __ Winning Can-Do Positive Attitude __ Safety First __ Accountable & Responsible

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__ Cutting-Edge __ Continuous Improvement __ Ability To Develop “A” Players continued on page 31

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Values & Principles continued from page 29

Excel Contractor BIZ-Principles

After your management team selects their top choices, tally them and then discuss which principles work for everyone and represent the real values your company wants to stand for. Try to limit your principles to 5 or less. I recommend no more than 7 or you will have too many to remember, manage, and stay focused on. If you must, you can combine a few principles into one – “Team players with positive attitudes who always follow company systems.” The following are two examples of companies I worked with their management team to help develop their BIZ-Principles:

1. Honesty, Integrity, Truthful, Respectful & Fair.

Acme Construction Company BIZ-Principles 1. Integrity & Honesty – Do What We Say. 2. Accountable and Responsible To Achieve Results.

3. Motivated Professional Problem Solvers.

4. Safety, Quality & Production Focused.

5. Committed To Continuous Learning To Achieve Excellence.

6. Team Players With Positive Attitudes Who Follow Co. Standards & Systems.

2. Take Ownership, Act & Find Solutions.

3. Do What's Right & Do What You Say You’ll Do. 4. Meet Expected Results With No Surprises.

5. Commitment To Exceed Customer Expectations.

6. Responsible For Safety First.

7. Character Above All Else.

Now it is your turn to draft and develop your BIZ-Principles and core values. After you have your BIZ-Principles completed, post them proudly in your office for all to see. Use them to make decisions on how you do business, treat others, act, operate, hire people, manage, and work with others. You can also add them to your employee review process and rate each person on all of the BIZ-Principles to determine if they are acting within your values or need improvement.

Written by George Hedley CSP CPBC, a professional construction BIZCOACH and popular industry speaker. He helps contractors grow, make more profit, build management teams, and get their businesses to work for them. n

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U.S. Department of Labor Approves New Respirator Fit Testing Protocols to Protect Workers from Airborne Contaminants

ASHINGTON, DC – The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) today issued a final rule that provides employers with two new fit testing protocols for ensuring that employees’ respirators fit properly.

The new protocols are the modified ambient aerosol condensation nuclei counter (CNC) quantitative fit testing protocol for full-facepiece and halfmask elastomeric respirators, and the modified ambient aerosol CNC quantitative fit testing protocol for filtering facepiece respirators. Both protocols are variations of the original OSHA-approved ambient aerosol CNC protocol, but have fewer test exercises, shorter exercise duration, and a more streamlined sampling sequence.

These two quantitative methods add to the four existing in Appendix A of OSHA’s Respiratory Protection Standard, which contains mandatory respirator fit-testing protocols that employers must choose

from to protect employees from hazardous airborne contaminants. The rule does not require employers in general industries, shipyard employment, and construction to update or replace their current fit testing methods, and does not impose additional costs.

The rule became effective September 26, 2019.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to help ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit www.osha.gov.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure workrelated benefits and rights. n

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Tyngsboro Officials Celebrate Groundbreaking of Water/Sewer Project

Symbolic groundbreaking ceremony for Tyngsboro’s Phase 2 Sewer & Water project, which will enable redevelopment at the former TJ Maxx plaza, that will become The 440. From left, Dracut State Rep. Colleen Garry, Sam Park, founder of Sam Park & Co, and owner of The 440, former Water Commissioner Warren Allgrove and Tyngsboro Selectwoman Hillary Winslow. (SUN/Julia Malakie)

T

YNGSBORO — Town officials last week celebrated the groundbreaking of the multi-million dollar Phase 2 Sewer/Water project.

Approved at annual town meeting in May 2018, the major project will bring municipal sewer to approximately 64 parcels concentrated in the area along northern Middlesex Road to the New Hampshire border.

“By putting those utilities and infrastructure in place, it’s making those parcels more appealing to potential developers for commercial or industrial purposes,” Assistant Town Administrator Justin Sultzbach said late last week.

Sewer Commission Chair Brian J. Martin led the ceremony held last Thursday at 440 Middlesex Road, which is currently being developed into a new plaza.

Speakers included state Sen. Ed Kennedy, state Rep. Colleen Garry and Selectmen Chair Hillari I. Wennerstrom.

According to the town, the project includes approximately 5,400 feet of new sewer; 3,250 feet of new water main, 12,200 feet of new force main, two wastewater pumping stations, and a force main crossing of the Tyngsboro Bridge (south side of sidewalk).

“It’s really great because there’s a lot of commercial businesses along the route that could use this sewer,” Cayer said of the highly-anticipated project.

OCTOBER, 2019

There is also a water portion of the project that’s part of a partnership with the Tyngsboro Water District.

According to the town website, that portion will construct approximately 2,800 feet of water main to connect the existing two dead end mains, which in turn will bring municipal water to all parcels in the project area.

Cayer said the project itself is funded in part through the Massachusetts State Revolving Fund (SRF), which is administered by MassDEP with joint funding support from the US EPA and Massachusetts Clean Water Trust.

Tyngsboro also applied for and received a $2.5 million MassWorks grant to help with the project costs. Back in 2017, the town received another MassWorks grant for the same amount for infrastructure projects to make the area around Flints Corner Plaza much safer for the public.

Sultzbach said the state is looking to invest in local projects that will help jump start the local economy. He pointed out that development is stunted as soon as you cross the border from New Hampshire into Massachusetts. The sewer project, he stressed, is making the parcels in this area of town more appealing to potential developers.

Written by Amaris Castillo. Reprinted with permission from the Lowell Sun. n

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Patrick W. Saltmarsh Corporate Safety Director J. Derenzo Companies

Hiring a New Safety Manager

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“Details matter, it’s worth waiting to get it right.” ~ Steve Jobs

here is no easy way to replace a good Safety Manager who was part of a very close-knit team, especially if he or she developed a rapport with their fellow employees and had a good understanding of the different personalities. Can you go out and find someone to fill their position? Sure. In today’s internet friendly world, a simple job posting on the internet will inundate your company with dozens of resumes of job seekers, but there is no guarantee that you will find the replacement you are hoping for.

Hiring good employees, or at least the right employee, can be challenging. While prospective Safety Managers may have the right education, and even perhaps a good work history, do they possess the characteristics beyond what is outlined on their resume? And determining whether a candidate will be the best fit for an open position during the interview process can prove to be painfully difficult.

As much as we would all love to hire turn-key employees with the applicable safety degree in hand, there is no guarantee that your company will end up hiring the right candidate. Quality Safety Managers need to possess a combination of skills and characteristics, which may prove difficult to quantify. Here are a few things to consider.

Before you start scheduling interviews, clearly define what type of Safety Manager your company is searching for. While not every candidate will possess all of the skills you may have outlined in the job description, you must prioritize the “must have” education, certifications, and experience based on the type of work your company performs. In doing this, OCTOBER, 2019

J. Derenzo Co. Assistant Superintendent, Colin O’Hearne, overseeing the means/methods for the delivery of equipment. you can hope to immediately weed out potential candidates from the long list of applicants.

The hiring process is just that: a process. Unfortunately, there are plenty of challenges and obstacles when it comes to hiring. For me, I feel it is important to not only look at the hard skills (degree, certifications, work history, etc.) but vitally important to assess the soft skills (personality, conversation skills, etc.) that can sometimes prove to be more beneficial when Safety Managers are tasked with modifying employee behavior. continued on page 38

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37

Safety Corner continued from page 37

we can all understand the standard. So, when you find that particular candidate that possesses both the knowledge, and a genuine desire to take the time and communicate with others, HIRE THEM! n

Safety has become much more than simply the enforcement of OSHA standards and performing site inspections. There must be an emphasis placed on behavior management and the continuous education of the workforce. Behavior based safety, and the modification of employee behavior, is neither an absolute cure nor a quick fix. Therefore, the imporMBO Precast Inc. tance of hiring a new Safety Man4 Marion Drive • Carver, MA 02330 ager with the right personality (soft T: 508-866-6900 • F: 508-866-5252 skills) can assist your company in www.MBOPrecast.com working towards these goals.

Safety management is not a one-dimensional position. It is not only about knowing the safety standards, procedures, and company rules. It is about the real world application of those safety standards.

It is about explaining safety in everyday language so

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OCTOBER, 2019

The Massachusetts RMV Driver Verification System

Free Sign Up for Commercial Customers

I

f UCANE members are interested in being able to track the license status of your drivers, the RMV offers this free program as a public safety tool for commercial customers. The Driver Verification System (DVS) gives a company the ability to track license statuses of their drivers through the RMV eServices Portal. Users receive an email notification from the RMV if there is a change in the license status of their drivers at any time while they are enrolled in DVS. When a DVS notification email is received, the client logs into their DVS account to view the driver(s) that has had a status change.

Having this information will allow employers to take immediate and corrective action if warranted, improving public safety in Massachusetts.

DVS also allows the purchase of an unattested driving record for any driver enrolled in the DVS program for $8, and the company will be billed monthly.

The DVS Program will provide the following information for any driver enrolled: • License class held (CDL, Passenger, Motorcycle), License Status, and Expiration Date • Organ Donor • Restrictions and Endorsements • 7D School Bus Certificate Expiration Date • CDL Self Certification Type and Expiration Date You can enroll online at https://www.mass.gov/ rmv-business-partners or get additional information from Kristen Hagan at 857.368.7243 – Kristen.

Hagan@state.ma.us.

Thanks to Jordan Tirone from DeSanctis Insurance Agency, Inc. for providing this information. n

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and can lead to severe injuries and even death if the excavation process is not properly addressed. National Trench Safety has a full complement of excavation support systems as well as engineering and training services to ensure you have the equipment needed to perform the job safely and effectively.

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THE BEST CHOICE FOR PROTECTION

FROM THE GROUND UP. Keeping everyone safe on the job site isn’t simple, but choosing the insurance package that’s right for you can be. Cavallo & Signoriello knows what you need.

VISIT WWW.CANDSINS.COM OR CALL 508.339.2951 TO LEARN MORE

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OCTOBER, 2019

In Memoriam

Paul W. D’Amico J. D’Amico, Inc.

W

e are deeply saddened to inform the UCANE membership of the passing of Paul W. D’Amico of Canton, MA, on September 11, 2019. Paul, along with his (deceased) brothers Joe and Antonio, were the second-generation owners of member firm J. D’Amico, Inc. for almost 50 years. The Randolph based construction firm has been an active member of UCANE since 1965. The company is into the third generation with Paul’s son James and his cousins continuing the family business first established in 1928.

Born and raised in Dorchester Paul was a proud graduate of English High School and served in the Army during the Korean War. Paul has lived in Canton since 1978 and was a former member of the Milton Hoosic Club, Wampatuk

Golf Club, and the Sons of Italy in Canton. He was an avid collector, especially of stamps, model cars, and coins.

He was the beloved husband of the late Josephine A. (Carnabuci); father of James C. D’Amico & his wife Karen of Canton and the late Paul A. D’Amico; father-in-law of Nancy D’Amico of Canton; grandfather of James C. and his wife Meg, Chris J., Paul A. Jr., and John W. D’Amico; also survived by many nieces & nephews.

The Officers, Board of Directors, Members, and Staff of UCANE extend their deepest sympathies and condolences to the entire D’Amico family. Paul will be sorely missed by all who knew him. n

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Barletta Engineering/Heavy Division Tackles CSO Project in Somerville Traveling down Somerville Avenue in the busy downtown area of Somerville, Massachusetts is a bit of an adventure these days thanks to a massive CSO project that the City began in March of 2018. Large excavators, pile driving equipment, and a fleet of heavy trucks take up multiple lanes on this urban street. A single travel lane remains for local traffic that might want to slowly navigate through the work zone, while being guided by Somerville police details working the site.

Barletta Superintendent Robert Russo with Site Engineer Meghan Nowak

Large engineered pit at upstream CSO connection - Somerville Ave. and Webster Street 42

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OCTOBER, 2019

Box Culvert and Utilities – Cross-Section New 16" Water Main

New 12" Water Main

New 14' by 6' Stormwater Box Culvert

New Communications Duct Bank Line Existing 39" by 26" Brick Sanitary Sewer

Special precast structures at upstream CSO connection

Existing Communications, Electric, and Gas Line Existing 12" Clay Sanitary Sewer Line Existing 72" Brick Combined Sewer

Typical cross-section along Somerville Ave.

T

he object of this project is to separate the storm water from the sewer system and to alleviate flooding during storm events in this section of the City, known as Union Square. In order to accomplish this, nearly the entire existing underground infrastructure network along a one-half mile section of Somerville Avenue is being reconfigured. The main reason for the reconfiguration is to create a new corridor large enough to accommodate an 8-foot high by 16-foot wide (outside dimensions) concrete culvert 2,500 feet long. Not an easy task considering the myriad of existing utilities and services that meander below the street, some of them over 100 years old.

After several years of design and neighborhood and business impact meetings, the project was put out to bid by designer and project engineer WSP-USA. This is the American subsidiary of WSP Global, the second largest International Engineering firm in the world. A stock-listed company, the firm has 500 offices in 40 countries and employs close to 50,000 people. The Somerville Ave project is being handled by the Boston office of WSP and led by Project Manager Rachel Burckardt. The city of Somerville’s project team is led by Project Manager Daniel Amelin. The ongoing project is critical to the overall Union Square Development Plan, which the City estimates could generate $1 billion in private investment over the next 10 years. Financing for the infrastructure improvements is through a combination of City budget and MassWORKS grants.

Komatsu PC 800 setting precast manholes

UCANE member Barletta Engineering/Heavy Division from Canton, MA was low bidder in February 2018 for the $45 million unusual project. Barletta is no stranger to challenging jobs and their heavy equipment dots the highway landscape throughout New England.

The 105-year-old contractor is led by fourth generation owner, and former UCANE President, Vincent Barletta.

The company has performed some of the largest underground and highway projects in the region. continued on page 44 OCTOBER, 2019

Setting 8-foot by 16-foot (O.D.) box culvert

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43

Barletta continued from page 43 Barletta’s Project Superintendent is Robert Russo who has been with the company for nearly 20 years. Rob coordinates three and sometimes four crews depending on traffic logistics and the requirement to maintain access to commercial abutters. “This is a unique project with a variety of logistical issues we have had to overcome,” says Russo. “There are utilities, traffic, pedestrians, cyclists, and commercial businesses on top of us every day.

Each operation is carefully sequenced and completed in segments to accommodate abutters. Almost every swing of our excavator needs to be choreographed due to the tight quarters on this site.”

The plans call for new 12-inch water mains to be placed on both sides of the street, relocation of major utilities including Eversource Gas and electrical lines, and working around a 48-inch MWRA water main. Existing brick combination sewers (72 inch and 39 inch) will be modified at some locations, internally lined, and repurposed as dedicated sewer lines. Installation of the box culvert will require protection of those 100-year-old brick sewers with steel sheet piling being driven the entire route to be cut off and left in place.

According to Meghan Nowak, the project engineer assisting Russo, about 40% of the box culvert has been placed and the project is on schedule with completion slated for the fall of 2021. “We have made decent progress, with only a few bumps along the way,” said Nowak.

“The coordination with the City project team and WSP has been good. Everybody’s goal has been to keep the crews moving and to maintain schedule.”

Nowak noted that the upstream culvert tie-in at Webster Street was one of the most challenging elements of the work. All the large diameter sewers and drains had to be converged at this location and redirected to either the new culvert or to the 72-inch brick sewer. This required an engineered excavation about 75 feet wide supported by mini-piles and lagging and an array of steel beams. This large excavation was open for over three months while massive precast structures were lowered into the excavation. All sewer flows and storm water flows were bypassed using a complex system of large pumps and discharge piping. Multiple pump arrangements were designed and furnished by UCANE member United Rentals Fluid Solutions.

“At times we had as many as 10 pumps in tandem with a pumping capacity upwards of 25 MGD to protect against peak storm conditions interfering with Barletta’s work,” stated Marc Scopelleti, dewatering specialist for United.

Unloading and setting the huge box culvert sections requires all hands on deck. The culvert and special structures are provided by UCANE member Concrete Systems, Inc., Nashua, NH. The 21-ton sections are delivered by trailer and hoisted into place by Barletta’s main workhorse, a Komatsu PC 800 excavator purchased from C.N. Wood Co., Inc. of Woburn (another long time UCANE member). It is a meticu44

New box culvert below heavy bracing system on Somerville Ave.

Reconnecting utilities after culvert installation

Installing sheetpile support system

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OCTOBER, 2019

lous rigging and setting operation. The excavator straddles the 22 foot wide sheeted excavation sitting atop an engineered bridge created with heavy beams and timber mats.

“Every time we set one of these sections it’s a great feeling for the crew,” says Barletta Foreman Seth Newton. “Although they are only 7.5-feet long, it means we’re moving forward.”

The steel sheeting is supported by a massive system of Megabrace walers and 50-ton hydraulic struts supplied by United Rentals. Three 40-foot sections of bracing weighing 11 tons each are leapfrogged as the excavation slowly progresses. “It’s certainly one of the heavier bracing systems we have supplied. It was fully designed for the conditions, it’s doing the job, and Barletta’s crews have become experts in using it,” says Kevin O’Brien, United’s area manager for shoring applications.

Although the underground portions of any infrastructure project are unavoidably disruptive and sometimes not well received by residents and travelers, the City has designed in some surface features that are quite innovative and sure to be well received by the community. According to Superintendent Russo the improvements will include enhanced pedestrian, transit rider, cyclist, and traffic flow improvements. These enhanced surface features will reduce intersection crossing distances and improve sight lines between pedestrians, drivers, and cyclists, making for a safer roadway. 6.5-foot wide bike lanes will be available along either side of the street. “Green stormwater infrastructure has been designed in and will be used to collect and filter runoff from 25% of the project area,” says Russo. “This will be accomplished by new planting areas, special stormwater infrastructure below the new trees, and permeable surfaces on the bike paths.”

UCANE Members supporting Barletta in Somerville: Concrete Systems, Inc.: Precast Culverts, Structures, and Manholes United Rentals: Bypass Pumping and Shoring Systems F. W. Webb Company: Valves, Fittings, Water and Sewer Piping Benevento Companies: Cast in Place Concrete and Gravel Aggregate Industries – Northeast Region, Inc.: Bituminous Products and Stone TRUX, Inc.: Trucking and Hauling C. N. Wood Company, Inc.: Komatsu PC 800 Excavator McWane Ductile: Ductile Iron Pipe

UCANE is proud to count Barletta Engineering/Heavy Division as a member for more than 25 years. We wish them success on the Somerville Ave. project and we know the City and the residents are in capable hands with this fine company.

Backfilling over box culvert and preparing to cut off steel sheet piling OCTOBER, 2019

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OCTOBER, 2019

Construction Safety & Compliance: An Interview with Tim Hunt Director of Environmental, Health and Safety W. L. French Excavating Corporation

UCANE’s Construction Outlook magazine editors recently caught up with Tim Hunt at a busy construction site in Boston. Tim is the Director of Environmental, Health and Safety with UCANE member firm W. L. French Excavating Corporation. We were able to get a few minutes of Tim’s time to discuss the importance of Safety in today’s heavy construction industry.

What is your background in Construction Safety?

I am the Director of Environmental, Health and Safety for W. L. French Excavating Corporation (WLF). I have been with WLF for the past four years building on the safety foundation that was here when I arrived. I graduated from Keene State College with a Bachelors Degree in Safety Studies and an Associates Degree in Chemical Dependency.

I have a diverse background in safety that adds value to my position every day. I have worked in the consulting field overseeing hazardous materials, environmental, general industry, construction, and indoor air quality (IAQ) work. I have vast experience in asbestos abatement demolition and Army Corps of Engineers work. I have been on “both sides of the fence” so to speak, working for both a general contractor and in the subcontractor field. Having led the safety teams from both the General Contractor and Subcontractor perspective I have more insight as to the needs and planning of all parties on a jobsite. I have always been one to take on challenges and try new things.

OCTOBER, 2019

What is the culture of safety that exists at W. L. French Excavating?

The culture at W. L. French Excavating is a strong one. As a family run business, safety is a cornerstone of the business.

It is a constant, evolving, and inclusive part of the culture here. Accessibility is a huge component of that. While I am the Director of Health & Safety, everyone in the company is available and visible in the office, in the field, and in the shop for our staff to access.

With accessibility comes increased communication and our employees have open lines continued on page 49

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Safety & Compliance continued from page 47 of communication and are encouraged to vocalize any needs, concerns, and new ideas.

We are always looking to use the latest technology to streamline our processes. We started using a video conferencing system that can connect the field with the office. This offers real time communication, inspection, and collaborative decision making when the safety team is not on site. We are able to record training sessions and replay them with that system as well. We recently replaced all of our fall protection harnesses, CO meters, four gas meters, and confined space tripods and blowers. We train our employees on all of the gear that they will be using in the field.

What are some of the major challenges you face as a Safety Director?

ny’s work and work area. In today’s construction climate, jobsites are getting smaller and project timelines are shrinking. That means often times many different companies working in the same area at the same time.

Another piece of advice would be to look at yourself as a teacher when it comes to dealing with employees. Employees will try to do what they feel is right, however, sometimes they make mistakes and need to be retrained instead of reprimanded. Education is critical, and you Area can never stop learning.

Boston continued on page 51

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Safety & Compliance continued from page 49 I have been a part of beta projects to test out new ideas (going paperless, changing procedures, etc.). Being open to new ideas, and having the ability to adjust and foresee change is a valuable part of any Safety position.

How do you think Contractors, as well as their workers, can benefit from organized and OSHA endorsed events like Safety Week and the National Safety Stand-Downs?

I think organized events like Construction Safety Week, National Safety Stand Downs, and OSHA’s Safe + Sound Week are beneficial to workers and companies. These events highlight the team effort it takes to provide a safe jobsite. It brings everyone together as one to celebrate and refocus workplace safety. It’s especially important for all to realize that safety is everyone’s responsibility. n

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MHA, NBM, and UCANE Partner for Panel Discussion Sponsored by Woodco Machinery, Inc.

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52

Al Morteo

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OCTOBER, 2019

F

or the past several years, UCANE has had an ongoing relationship with the Mass Highway Association (MHA), Norfolk/Bristol/Middlesex Highway Association (NBM) and other associations in an effort to bring contractors and local officials together. These relationships are crucial to the successful completion of a job. The most recent coming together of these groups was at UCANE’s September Dinner Meeting, which was held at the Sheraton Four Points Hotel in Norwood. A panel of public works directors and UCANE contractors answered questions and discussed the most critical issues facing our industry today.

Participating on the municipal panel were Dave Field, Director of Public Works for the Town of Easton, and Secretary of NBM; Chris Cronin, Director of Public Works for the Town of Andover and Past-President of MHA; and Andy Pappastergion, Commissioner of Public Works for the Town of Brookline, who was a longtime member of the MWRA Advisory Board and currently serves on the MWRA Board of Directors. The UCANE panel consisted of Chris Valenti from GVC Construction, Inc., Leominster, MA. Chris is a past UCANE Board Member who will be returning next year as an Officer, serving as Secretary; Al Morteo from FED. CORP., Dedham, MA. Al is a longtime UCANE Board Member and Past-President; and Richard Pacella, Jr. of R. M. Pacella, Inc., Plainville, MA who is cur-

OCTOBER, 2019

rently completing his second year as UCANE President.

UCANE Executive Director Anne Klayman opened the meeting by introducing UCANE’s new members who were in attendance, as well as the close to 15 public works officials who were in attendance. She gave special thanks to longtime friend of UCANE and Past-President of both MHA and NBM, former Norwood Public Works Director Joe Welch, who was instrumental in putting the evening’s panel discussion together.

Anne then introduced UCANE Assistant Executive Director Jeff Mahoney, who served as moderator for our panel discussion. Jeff opened with a general question to all the panelists: “Besides funding, what do you see as the number one issue with regard to the successful completion of public underground utility projects?” All six panelists had the same answer, which was “communication.” All agreed that it was crucial that contractors and public works officials constantly communicate with each other in an effort to try and address any issues before they might cause delays.

Several other essential topics were covered during the question and answer period. The DPW Directors were split as to whether or not their municipalities used the State Revolving Fund (SRF) program to fund water infrastruccontinued on page 55

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Dinner Meeting continued from page 53

ture projects. Although it was clear that many towns have used the SRF program, borrowing rates are so low at the current time that many municipalities are choosing to finance projects on their own. Other topics included the importance of safety in construction, the difficulty of securing police details at times, issues with bid specifications and job estimates, and coordinating with utilities.

The program ended with some closing thoughts from the panelists on their “outlook for the future,” where our industry is heading in the next few years, and what the most pressing issues will be. Our panelists discussed the emergence of PFAS as a contaminant, climate resiliency, and the continued deterioration of current pipes and systems in the years ahead. The audience was engrossed in the in-depth discussion, which could have continued well into the evening, but time constraints brought the panel to a conclusion.

UCANE would like to thank all of our panelists for taking time out of their busy schedules to participate in our evening’s program.

The feedback we received has been extremely positive, and we look forward to doing it again at a future dinner meeting! n

OCTOBER, 2019

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Are You Prepared for an OSHA Visit?

One of the major concerns most business owners have is “What if OSHA comes knocking on my door? Am I ready? What will they find? What should I, or my supervisors do?” Most of the time companies are acting in a safe manner and are putting an honest foot forward to protect their employees. One of the most common things you hear around the construction industry is that OSHA Compliance Officers get paid more for each violation they issue. This is not true and in fact is against the law in the OSH Act of 1970. Section 8(h) bans any government agency from using inSubmitted by Jonathan Cuneo spection results for any personal promotion or payment.

Chief Safety Officer As a business owner you have rights when it comes to an Walsh Contracting Corp.

OSHA inspection.

Being Prepared Before OSHA arrives at your door or on your jobsite, make sure you have done your part to prepare for the chance that OSHA will arrive. Having a clear company safety policy in place along with the proper paperwork will make life a lot easier. OSHA will likely not give you any notice prior to arriving at your business or jobsite, and trying to collect or put all the required paperwork together at the last minute will not end well. OSHA compliance officers have a great deal of experience and will see through most last minute efforts to assemble paperwork.

So what should you have ready? There are some basic items OSHA may ask for if they pay a visit to you. Typically these are documents proving that you have trained your employees on a regular basis in the field in which they work. OSHA will want to make sure that your employees have access to data that will inform the employee of any potential harmful effects that could be caused by materials that they are working with (i.e. Material Safety Data Sheets).

OSHA may ask to see your company Safety Policy. If the visit is to a construction jobsite, they will be looking for your project specific Health and Safety Plan including Hazard Analysis of specific job tasks. Certainly, you will want to have any required OSHA posters or logs available in plain view, as well as access to annual reporting documents that are submitted to OSHA. Some documentation may be on site, some available in the main office, but all are critical to have in your company safety files.

All Safety Training sessions (even tool box talks) should be signed by the attendees. Remember that OCTOBER, 2019

if it’s not in writing and signed, it will be difficult to prove it ever occurred. Make sure your employees are exposed to and sign off on key policies each year or whenever they are updated. When reviewing the various programs and policies each year, ensure that you are up to date with current OSHA regulations and any changes OSHA may have made. Your employees are not expected to know every element in every company safety document, but they should be generally knowledgeable about company safety policies and especially safety rules related to the work they are performing.

If your company has a full time Safety Officer, it is his/her continuous job to make sure that proper records and documentation are up to date and that employees understand and abide by OSHA and company safety rules. Those companies without a full time Safety Officer should hire a third party safety professional to perform audits on at least an annual basis or when starting a new construction project to make sure you have all your documentation in order and confirm that your employees are up to speed and can answer basic questions in case they are asked during an OSHA inspection.

OSHA Has Arrived and Wants to Inspect Your Site Now that you are aware of some of the basic paperwork you might need, you want to know what to expect when OSHA arrives and what your rights are. The OSHA Compliance Officer (CO) should identify himself/herself when they enter the site continued on page 59

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Are You Prepared continued from page 57 and ask for a company supervisor. You have the right to ask to see the officer’s credentials in order to confirm his/her identity. You also have the right to ask the officer why they are here; if it was a report or particular safety violation that precipitated the visit; and if the CO has taken any photos prior to introducing himself. These questions are highly recommended and should be done before any further steps are taken.

OSHA does not need a warrant to conduct an inspection on public property. You may deny them access to private property and request to see a warrant and this technically can’t be used in determining the outcome of an investigation. However, OSHA will likely send a different more seasoned compliance officer once the warrant is obtained, someone who may be more experienced and better at finding minor safety violations. If you have a company policy that states that OSHA can’t enter the private property without a warrant you should explain that you are not trying to be uncooperative but your hands are tied. In this case you may get the CO to understand and give you some leeway. During this initial discussion with the OSHA CO you have the right to ask for an opening conference.

Opening Conference The Opening Conference is a very important part of an OSHA inspection. Employers should always request that the OSHA CO provide one before officially beginning an onsite inspection. If the Employer’s Safety Manager is not on site or not immediately available, the employer representative should ask the CO to wait until the Safety Manager arrives before proceeding with the opening conference or the site visit. The CO is obligated to accommodate this request in most instances as long as the time is reasoncontinued on page 60

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Are You Prepared continued from page 59 able – typically no more than one hour.

During the Opening Conference, the CO must explain why your workplace is being inspected, and if you question that explanation (e.g., incorrect application of an emphasis program, non-credible employee complaint, or a programmed inspection too soon after a prior inspection), you may be able to convince the CO that the inspection should not proceed. If the inspection proceeds, the Opening Conference is the time for employers to negotiate the scope of the inspection. For example, if OSHA is there because of an employee complaint, employers should negotiate with the CO to limit the inspection to only the subject(s) of the complaint, and not consent to a wall-to-wall inspection. Employers can also establish ground rules for the inspection during the opening conference.

The Site Inspection Typically OSHA is expecting that the employer’s manager or safety officer will accompany him during the site visit. The CO may also ask if a member of the employee union will be present during the walk through. A representative of the employee workforce is entitled to be present during the site visit, but it is not mandatory.

The employer’s representative should take detailed notes about everything the CO says, does, or asks during the walk-around, and take side-by-side photographs, videos and samples to ensure the employer has all the same evidence the CO has collected. Moreover, the representative should inquire of the CO why certain photographs are being taken; essentially gather as much intelligence as possible, so issues can be nipped in the bud, addressed and/ or defenses can be developed. The representative should take action whenever possible to immediately correct any alleged hazardous conditions or violations identified by the CO without admitting a violation.

As part of an inspection, the CO may conduct interviews with hourly employees and supervisors.

Non-supervisory employees have a right to a private interview with OSHA but that employee can decide to converse with the CO or opt not to.

It is very important that the management representative accompanying the CO is very knowledgeable about Safety and OSHA compliance. OSHA imputes the knowledge and the statements made by any supervisor to the employer. This means their statements and admissions may bind the Employer. Casual or careless statements can be used continued on page 61

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Are You Prepared continued from page 60 not only to establish a violation, but also to support a Willful characterization. Therefore, management representatives and supervisors should limit verbal exchanges with the CO and not offer opinions or admissions in most cases. If the CO asks a question and you are not sure of the answer, tell the CO that you will get the information and respond to him later, do not guess at responses to questions from the CO.

Closing Conference After the walk-around, the CO holds a closing conference with the employer and the employee representatives to discuss the findings. The list of findings discussed at the closing conference may not be all-inclusive. The information gathered by the CO will be reviewed by other OSHA staff later at the regional office. Based on photographs, lab test results, notes made by the CO, etc., additional violations may be added to (or subtracted from) the list compiled by the CO. The CO usually discusses the next course of action that OSHA may take and will advise the employer on options available to the company. OSHA has up to six months after the inspection to issue a formal citation to the employer. The CO may also advise the employer of his right to an informal conference with OSHA and the procedure for contesting citations and penalties. The CO may also discuss consultation services available through OSHA, as well as employee rights. Most of this information will also be included in the formal citation that will be delivered by certified mail.

OSHA comes knocking you are confident in both your program and your staff. Always work with the CO so they know you are serious about the safety of your employees and be courteous and professional to the CO. Be prepared ahead of time by having all the Safety documentation and paperwork accessible in the proper files or on the jobsite as may be required. In the construction business safety training is an ongoing event and safety programs are almost live documents.

Company safety records and files should be expanding each year to show OSHA your commitment to keeping your employees educated and safe.

Conduct occasional mock OSHA inspections to see how you do. Walk the facility or jobsite and look for violations, check your paperwork and talk with your employees. Ask them questions about the safety at your facility or site. This will go a long way in making you and your employees ready for an OSHA inspection. Safety is most successful when your employees feel like they are part of the solution and buy in. n

Conclusions It is always important that you address all safety concerns discussed during the Site Inspection or at the Closing Conference as fast as reasonably possible and remove any employee from the work zone until the hazard is abated. If you think that your visit by OSHA may result in a potential citation for a serious, willful, or repeat violation, it is also probably time to call your attorneys and review the situation with them.

Remember that OSHA’s job is to ensure that employee safety and health regulations are being met. The responsibility of meeting the OSHA regulations falls to the employer.

You need to do your part to ensure that when OCTOBER, 2019

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Kristin Erickson

Tonry Insurance Group, Inc.

The Optional Coverages – Are They Really Optional?

When an insurance coverage is required by specifications and you intend to win that job, your decision to buy the insurance is easy. The hard part is finding the right coverage at the best price.

B

ut what about the optional coverages? I’m not talking about coverage for buildings, equipment, and property. I’m talking about protecting your reputation, your family, your livelihood, and the livelihood of your business partners and employees – the most important assets of all!

We all know the basics of risk management – risk identification, risk analysis, risk avoidance, risk prevention, risk reduction, and risk transfer. Every decision we make involves risk management analysis – formal, informal, or inherent. As a business owner, director or officer, you’ve automatically assumed tremendous risk. You make decisions constantly that impact your clients, vendors, creditors, shareholders, employees, sub-contractors, and the family members of all of those connections. It is virtually impossible for you to contemplate how your actions can affect all of the people who are connected to your business. You simply don’t have the time or the resources.

The insurance industry offers a number of products specifically designed to protect you AND provide resources to reduce and prevent loss. These products are rarely required by specifications or by law, making them technically optional. I would argue that, unless you have no one depending on the outcome of your decisions, and therefore live in a vacuum, transferring some of this risk using available and affordable insurance products is essential.

So, what are these products? In general, five major coverages fall under a blanket product called Management Liability Insurance – Employment PracOCTOBER, 2019

tices Liability Insurance, Director’s & Officer’s Liability Insurance, Fiduciary Liability Insurance, Crime Insurance or Fidelity Bonds, and Cyber Liability Insurance. In addition to providing coverage, most of these products include access to online portals, response teams, hotlines, and defense attorneys – all designed to minimize your risk. Unlike other insurance products, these coverages come with immediate benefits. In addition, we are seeing an increase in requirements for Crime Coverage and Cyber Liability coverage in specifications.

Describing each of these coverages in detail is beyond the scope of this article, but I hope I’ve given you incentive to learn more. If not, let me leave you with a few coverage scenarios provided by our insurance companies:

Sexual Harassment XYZ Inc. is a construction company in Detroit.

Jane was hired six months ago as a laborer on a road crew in Minnesota. She was one of only two women on the road crew. When she failed to show up for work for two days, she was sent a termination letter. Two weeks later, Jane’s attorney sent a letter to XYZ alleging sexual harassment. Jane alleged that her supervisor, Mr. Smith, and one of her co-workers, Mr. Jones, made sexually explicit comments to her. In addition, Jane alleged that Mr. Jones grabbed her inappropriately and brushed up against her. She alleged that Mr. Jones asked her if she wanted to have sex with him continued on page 65

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Insurance Perspectives continued from page 63 and often bragged about his sexual conquests. Jane said that she told Mr. Smith that Mr. Jones made her uncomfortable at work, but Mr. Smith told her “she was being a baby.” As a result, Jane alleged that she could no longer return to work as a result of a hostile work environment. XYZ had a written sexual harassment policy, which was reviewed by its attorney. In addition, the policy had a good reporting procedure, which instructed all employees to report any discrimination or harassment to the HR department in Detroit. Jane did not take advantage of these complaint procedures, which would have provided XYZ with a good defense.

However, XYZ Inc. did not distribute the policy to many of its new employees on the road, including Jane. As a result, Jane reported the matter to Mr. Smith who did not handle the complaint appropriately, settled the matter for $100,000. (Scenario provided by CNA.)

Misrepresentations – Long Term Disability Plan XYZ is a manufacturing company that specializes in women’s apparel and had a long-term disability program for its employees. A few years ago, one of its employees, Mr. Smith, was injured in an automobile accident. He called the HR manager at XYZ who told

him he would not be eligible for disability benefits under the program because he was not employed at XYZ for long enough. The HR manager did not realize that Mr. Smith was covered under an exception to the policy and was eligible for benefits. Mr. Smith sued XYZ and the plan for violation of ERISA and demanded lost benefits and attorney’s fees. He was awarded $95,000 in lost benefits, as well as an additional $200,000 for attorney fees. (Scenario provided by CNA.)

Discrimination/Retaliation A former employee filed a complaint with the Department of Labor and later filed suit alleging FMLA violations. The claimant contended she was on leave for pregnancy complications and was terminated for falsifying a physician note to extend her leave. The parties eventually settled, and $28,000 was paid toward settlement and defense costs. (Scenario provided by Great American.)

Retaliation A former employee alleged he was terminated for complaining about unsafe work conditions. The matter settled for $35,000, but only after $70,000 was incurred in defense costs. (Scenario provided

by Great American.) continued on page 67

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Insurance Perspectives continued from page 65

Discrimination/Failure to Accommodate/Retaliation/Wrongful Termination An HVAC installer suffered a knee injury and went on a covered leave. When the employee said he was returning to work, the employer sent a back dated letter stating that because leave had been exhausted and the company had not heard from the employee, the company would consider him to have resigned.

The employee claimed that he had provided a doctor’s note extending his leave and should not have been terminated. The employee alleged disability discrimination, failure to accommodate and engage in an interactive process, retaliation, and wrongful termination. The settlement was for $200,000 in favor of the employee. (Scenario provided by Hanover.)

Discrimination/Failure to Accommodate/Retaliation/ Wage and Hour Violations What happened: An office manager was terminated after being out on sick leave. She turned in a doctor’s note and then had the leave extended two

OCTOBER, 2019

days later. While she was out of the office the owner discovered that she had not billed their clients for months and the company was losing money. The termination letter stated she was dismissed for failing to report to work for two days. The company claimed it never received the second doctor’s note. She alleged disability discrimination, failure to accommodate and engage in interactive process, retaliation, as well as wage and hour violations. The settlement was $150,000 in favor of the employee. (Scenario provided by Hanover.)

Unfair Competition A construction company bid on a project to redesign and build highway off-ramps. Just after placing the bid, an engineer who contributed to it left for a competitor. The competitor also bid on the project with the new engineer’s help, and won. The former company accused the engineer of sharing confidential information. The engineer’s former employer issued a cease and desist letter, then sued for tortious interference with prospective business advantage, unfair competition, trade secret violation, and breach of the non-compete agreement. It cost upwards of $1 million in defense and settlement costs to resolve.

(Scenario provided by Travelers.) continued on page 69

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Insurance Perspectives continued from page 67

Data Breach A small construction firm maintains employee and 1099 contractor records on their network. The records contain private personally identifiable information for tax reporting, including social security numbers/tax payer IDs. The firm’s network security is breached. The attacker steals personal records. The firm must notify all affected individuals in writing. It also purchases one year’s worth of credit monitoring services on their behalf to detect unauthorized activity in their credit accounts. Later, the attacker sells the stolen information to an ID theft ring. The ID thieves age the information for a year (after credit monitoring stops). They then begin using it to fraudulently obtain credit in the name of the compromised individuals. The affected individuals sue the firm for breach of privacy and seek consequential damages. Defense costs totaled $500,000, privacy expenses were $100,000 and customer damages were $900,000.

(Scenario provided by CNA.)

Breach of Contract A family farm underwent substantial growth in the past 40 years and is now a large regional company. Two grandchildren of the founder ran the daily operations and are board members. Three other grandchildren are shareholders, but not involved in operations. The family decided to forego annual distributions to shareholders to make capital investments to support continued growth. The three shareholder grandchildren and their spouses sued the board demanding payment of the annual distribution and access to financial records and asserting breach of contract. This situation cost the farm $400,000 in defense and settlement costs. (Scenario provided by Travelers.)

Employee Theft An employee of a small private firm embezzles $250,000 from her employer over a four-year period.

The employee obtained the necessary signatures on the checks either by altering the payee upon being signed by an authorized individual or by using a facsimile signature stamp. She then issued checks in her name and purchased items for her personal use.

The firm was reimbursed for their loss.

Employee Theft of Client Property While on Client Premises An accounting firm places several of their employees with one of their clients to help complete their monthly payroll. As part of the accounting firm’s placement contract with the client, they are required OCTOBER, 2019

to provide protection against theft by their employees. One of the accounting firms’ employees steals several of the client’s laptops. The accounting firm reimburses its client and is paid for their loss.

Forgery and Alteration An unknown individual gains access to an insured’s accounts and obtains checking account numbers. The individual creates $5,000 in fictitious checks using the insured’s account numbers and goes to a check cashing business to cash them. The check cashing company contacts the insured requesting it transfer funds for the fraudulent checks they have paid. The insured is paid for the loss and is able to reimburse the check cashing company. n

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Regional Sewer Plant Plans Gain Steam Dennis, Yarmouth, and Harwich look to save money through partnership.

H

ARWICH — Officials and residents from the three towns that are working on a regional solution for treating wastewater recently got a more detailed look at what the partnership would cost, how it could operate, and how some costs might be recovered.

“There are many advantages to this plan,” said Paul McCormick, the interim chairman of a subcommittee that has been working for nearly three years on the Dennis Harwich Yarmouth Clean Waters Community Partnership draft agreement. “The most obvious one is the fact that we’re going to save some money by working together.”

McCormick was one of about a dozen officials who spoke at a joint meeting of the towns’ boards of selectmen at the Harwich Community Center on Thursday night (September 19). The meeting offered the most comprehensive overview yet of the proposed agreement and related costs.

Plans call for treating wastewater from each town at a central facility in South Dennis. While the towns would be individually responsible for installing their own collection systems, sharing a treatment plant would save them a combined $70 million in upfront construction costs, along with an estimated $6 million in annual operating costs, according to a website for the project.

A bill that would make the partnership a legal entity with the authority to incur debt and acquire land for wastewater purposes passed the Massachusetts House in August, and currently resides with the Senate.

But the agreement between the towns — not the legislation — will determine how the partnership works, including how each town is represented and how much it will pay.

OCTOBER, 2019 SEPTEMBER, 2016

“The slide says partnership,” Harwich Selectman Donald Howell said, “but it’s really an independent body that we’re creating that’s going to have governing authority, so it’s important for us to get this right from the get-go.”

A draft of the agreement shows that the commission would comprise three representatives from Yarmouth and two each from Harwich and Dennis. The commissioners would be appointed by each town’s board of selectmen, except in Dennis, where the town moderator would choose one of the appointments.

According to David Young, Vice President of the engineering firm CDM Smith, wastewater flowing into the plant will reach 6.5 million gallons per day by the time the plant reaches full capacity in about 40 years.

About 55% of the flow will come from Yarmouth, 30% from Dennis and 15% from Harwich. Each town would pay for the treatment facility and shared conveyance systems based on how much flow it sends to the plant.

Conveying wastewater to Dennis would cost millions more for Harwich and Yarmouth than piping it continued on page 72

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Spotlight on Cape Cod continued from page 71 to a plant within town borders, Young said, but both towns would make up those costs by saving tens of millions on construction of the treatment facility.

Overall, Dennis will pay about $282 million in capital costs for a wastewater program that includes participating in DHY versus $313 million for a goit-alone program. In Harwich, those numbers are $291 million for the regional option versus $315 million solo; and in Yarmouth, $450 million versus $456 million.

For operating and maintenance costs, Dennis would pay $5.1 million if it participates in DHY versus $7.3 for its own plant. Yarmouth would pay $8.5 million as part of the partnership versus $12.6 million solo, and Harwich would pay $4.6 million in either case.

The annual savings achieved by participating in DHY totals about $3.6 million in Dennis, $1 million in Harwich and $4.4 million in Yarmouth, Young said.

“There’s truly an economy of scale savings in working together for this that wouldn’t be achieved if the three towns didn’t work together,” Young said.

Officials from each town also talked about plans for recouping costs. Strategies include securing interest rates as low as 0% to 2% through a state revolving loan program; participating in the Cape and Islands Water Protection Fund, and raising money through real estate and lodging tax programs that allow communities to generate dedicated revenue streams for such projects.

Much of the presentation focused on Harwich, where recent discussions about resequencing the town’s planned phases for connecting into the proposed DHY treatment plant and to an existing plant in Chatham have generated confusion.

Harwich residents also voiced concerns that the presentation of costs related to the town’s plan is difficult to follow.

Sharon Pfleger, who serves on the Harwich Board of Health, asked if the town’s selectmen plan to hold a meeting where residents can ask questions and weigh in on the draft agreement before it is finalized.

“I’m not a number cruncher by any stretch of the imagination, but a few things that I did just see in here don’t add up to me,” Pfleger said. “I’m not saying they’re wrong, I’m saying I can’t follow it. I don’t think I’m going to be the only person who can’t follow this.”

Howell said the meeting was intended to be the beginning of a more intense period of public education and outreach, not the end.

“We anticipate there has to be a whole heck of a lot more discussion of the townspeople, what I call retail politics,” Howell said, “because ultimately, this is going to go to each of our town meetings.”

Gary Moran, deputy commissioner of operations and compliance for the state Department of Environmental Protection, said state officials have been encouraged by the towns’ work on the partnership.

“This is a unique opportunity, we feel, for communities to have the opportunity to develop tailored solutions that work most effectively ... and really have control over what the ultimate solutions would be,” Moran said. “Ultimately, MassDEP does have a responsibility to ensure that timely action is taken to address, restore and protect the Cape water bodies and meet water quality standards.”

The subcommittee is working to finalize the draft agreement by December to allow enough time for residents to review it before the spring town meetings. The agreement and other details of the partnership are available online at dhycleanwaters. org.

Written by Kristin Young. Reprinted from the Cape Cod Times. n

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Retirement Plans for Small Businesses Multiple Employer Plans A Multiple Employer Plan (MEP) is a retirement plan that is adopted by two or more employers that are unrelated for income tax purposes (i.e. not members of a controlled group, commonly controlled group, or affiliated service group). A MEP may be a defined benefit pension plan or a defined contribution retirement plan maintained by two or more employers for the purpose of pooling investments and sharing administrative costs. MEPs typically maintain separate accounts for each of the adopting employers, and can have different plan designs for each adopting employer.

MEPs enable employers to offer and participate in a professionally administered plan by providing economies of scale and can often: • minimize fiduciary responsibility • streamline reporting and disclosure requirements, taking the burden off of the staff and employer • lower internal investment expenses for the employees and employer

A

s a business owner, you should carefully consider the advantages of establishing an employer-sponsored retirement plan. Generally, you’re allowed a deduction for contributions you make to an employer-sponsored retirement plan. In return, however, you’re required to include certain employees in the plan, and to give a portion of the contributions you make to those participating employees. Nevertheless, a retirement plan can provide you with a tax-advantaged method to save funds for your own retirement, while providing your employees with a powerful and appreciated benefit.

Types of Plans There are several types of retirement plans to choose from, and each type of plan has advantages and disadvantages. This discussion covers the most popular plans. You should also know that the law may permit you to have more than one retirement plan, and with sophisticated planning, a combination of plans might best suit your business’s needs.

Profit-Sharing Plans Profit-sharing plans are among the most popular employer-sponsored retirement plans. These straightforward plans allow you, as an employer, to make a contribution that is spread among the plan participants. You are not required to make an annual contribution in any given year. However, contributions must be made on a regular basis. With a profit-sharing plan, a separate account is established for each OCTOBER, 2019

plan participant, and contributions are allocated to each participant based on the plan’s formula (this formula can be amended from time to time). As with all retirement plans, the contributions must be prudently invested. Each participant’s account must also be credited with his or her share of investment income (or loss). For 2018, no individual is allowed to receive contributions for his or her account that exceed the lesser of 100% of his or her earnings for that year or $55,000 ($54,000 in 2017). Your total deductible contributions to a profit-sharing plan may not exceed 25% of the total compensation of all the plan participants in that year. So, if there were four plan participants each earning $50,000, your total deductible contribution to the plan could not exceed $50,000 ($50,000 x 4 = $200,000; $200,000 x 25% = $50,000). When calculating your deductible contribution, you can continued on page 74

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Retirement Plans continued from page 73 only count compensation up to $275,000 in 2018 ($270,000 in 2017) for any individual employee.

401(k) Plans

dollar up to 1% of pay, and 50% on additional contributions up to 6% of pay. You can also require two years of service before your contributions vest (compared to immediate vesting in a safe harbor plan).

Note: A 401(k) plan can let employees designate all or part of their elective deferrals as Roth 401(k) contributions. Roth 401(k) contributions are made on an after-tax basis, just like Roth IRA contributions.

Unlike pre-tax contributions to a 401(k) plan, there’s no up-front tax benefit — contributions are deducted from pay and transferred to the plan after taxes are calculated. Because taxes have already been paid on these amounts, a distribution of Roth 401(k) contributions is always free from federal income tax. And all earnings on Roth 401(k) contributions are free from federal income tax if received in a “qualified distribution.” Note: 401(k) plans are generally established as part of a profit-sharing plan.

A type of deferred compensation plan, and now the most popular type of plan by far, the 401(k) plan allows contributions to be funded by the participants themselves, rather than by the employer. Employees elect to forgo a portion of their salary and have it put in the plan instead. These plans can be expensive to administer, but the employer’s contribution cost is generally very small (employers often offer to match employee deferrals as an incentive for employees to participate). Thus, in the long run, 401(k) plans tend to be relatively inexpensive for the employer. The requirements for 401(k) plans are complicated, and several tests must be met for the plan to remain in force. For example, the higher-paid employees’ deDefined Benefit Plans ferral percentage cannot be disproportionate to the rank-and-file’s percentage of compensation deferred.

By far the most sophisticated type of retirement plan, a defined benefit program sets out a formula However, you don’t have to perform discriminathat defines how much each participant will receive tion testing if you adopt a “safe harbor” 401(k) plan. annually after retirement if he or she works until reWith a safe harbor 401(k) plan, you generally have to tirement age. This is generally stated as a percenteither match your employees’ contributions (100% of age of pay, and can be as much as 100% of final employee deferrals up to 3% of compensation, and 50% of deferrals between 3% and 5% of compensacontinued on page 75 tion), or make a fixed contribution of 3% of compensation for all eligible employees, regardless of whether they contribute to the plan. Your Water Works Specialist contributions must be fully vested John Hoadl Water Works Specialist Tel:781-878-8098 Fax:781-878-5298 immediately. You can also avoid Water Works Spe discrimination testing by adopting Tel:781-878-8098 Tel: 781-878-8098 Fax: 781-878-5298 a qualified automatic contribution “OuraProducts the Most Trusted NamesNames in theinIndustry” “OurIndustry” Products Are the Most Trusted N arrangement, or QACA. Under “OurAre Products Are the Most Trusted the � U.S. Pipe ● Cultec ● Cultec Chambers QACA, an employee who �failsU.S. to Pipe � Mueller Fire Hydrants ● Nation • U.S. Pipe • Cultec Chambers make an affirmative deferral Mueller Tapping Sleeves & Valves ● ADS P � elecMueller Fire Pipe & Plastics • Hydrants Mueller Fire Hydrants ● National • National Pipe�� &Smith Plastics Blair Clamps & Couplings ● Genera tion is automatically enrolled in � Mueller Tapping Sleeves & Valves ● Valves ADS Pipe Chambers • Mueller Tapping Sleeves & • &ADS Pipe & Chambers Mechanical Services the plan. An employee’s automatic � Tapping Sleeves & Gates Installed • Clamps Smith & Blair Clamps & Couplings • General Foundry Castings � Smith Blair Couplings ● General Foundry Castings contribution must be at least 3% � Line Stop / EZ Valves Mechanical Services � Cutting of Chilled Water Lines & for the first two calendar years of Mechanical Services � Pressure Testing & Disinfection o � Tapping Sleeves & Gates Installed / Cut participation and then increase 1% � Installation & Testing of Backflow • Tapping Sleeves & Gates Installed / Cut each year until it reaches 6%. You � Large Diameter Hydraulic Pipe C � Line Stop / EZ Valves • Line Stop / EZ Valves � Hydrant Installation & Repair can require an automatic contribu� Cutting ChilledWater WaterLines Lines&&Steam SteamLines Lines � Electronic Leak Detection • Cutting of of Chilled tion of as much as 10%. Employ“Water-Sewer-Drain Supplies at a Com • Pressure Testing &&Disinfection � Pressure Testing DisinfectionofofNew NewMains Mains ees can change their contribution www.hoadleyandsons.com • Installation && Testing ofof Backflow � Installation Testing BackflowPreventers Preventers 24 24Hours Hours672 Union Street Rockland, MA rate, or stop contributing, at any • Large Diameter Hydraulic Pipe Cutting Sales& Service Sales & Service � Large Diameter Hydraulic Pipe Cutting time (and get a refund of their auto• Hydrant Installation & Repair Serving ofof Servingallall matic contributions if they elect out � Hydrant Leak Installation & Repair New • Electronic Detection NewEngland England within 90 days). As with safe har� Electronic Leak Detection bor plans, you’re required to make “Water-Sewer-Drain Supplies at Supplies a Competitive Price” Price” “Water-Sewer-Drain at a Competitive an employer contribution: either 3% www.hoadleyandsons.com www.hoadleyandsons.com of pay to each eligible employee, or a matching contribution, but the 672 Union Street MA Rockland, 672 Union Street Rockland, 02370MA 02370 match is a little different — dollar for

John Hoadley and Sons Inc. John Hoadley and Sons Inc.

74

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

OCTOBER, 2019

Retirement Plans continued from page 74 average pay at retirement. An actuary certifies how much will be required each year to fund the projected retirement payments for all employees. The employer then must make the contribution based on the actuarial determination. In 2018, the maximum annual retirement benefit an individual may receive is $220,000 ($215,000 in 2017) or 100% of final average pay at retirement. Unlike defined contribution plans, there is no limit on the contribution. The employer’s total contribution is based on the projected benefits. Therefore, defined benefit plans potentially offer the largest contribution deduction and the highest retirement benefits to business owners.

work much like 401(k) plans, but do not have all the testing requirements. So, they’re cheaper to maintain. There are several drawbacks, however. First, all contributions are immediately vested, meaning any money contributed by the employer immediately belongs to the employee (employer contributions are usually “earned” over a period of years in other retirement plans). Second, the amount of contributions the highly paid employees (usually the owners) can receive is severely limited compared to other plans.

Finally, the employer cannot maintain any other retirement plans. SIMPLE plans cannot be utilized by employers with more than 100 employees.

Finding a Plan That’s Right for You

SIMPLE IRA Plans Actually a sophisticated type of individual retirement account (IRA), the SIMPLE (Savings Incentive Match Plan for Employees) IRA plan allows employees to defer up to $12,500 for 2018 (same limit as 2017) of annual compensation by contributing it to an IRA. In addition, employees age 50 and over may make an extra “catch-up” contribution of $3,000 for 2018 (same limit as 2017). Employers are required to match deferrals, up to 3% of the contributing employee’s wages (or make a fixed contribution of 2% to the accounts of all participating employees whether or not they defer to the SIMPLE plan). SIMPLE plans

L. GUERINI GROUP, INC.

If you are considering a retirement plan for your business, ask a plan professional to help you determine what works best for you and your business needs. The rules regarding employer-sponsored retirement plans are very complex and easy to misinterpret. In addition, even after you’ve decided on a specific type of plan, you will often have a number of options in terms of how the plan is designed and operated. These options can have a significant and direct impact on the number of employees that have to be covered, the amountUCANE of contributions that have MEMBER to be made, and the way those contributions are allocated (for example, the amount that is allocated to you, as the owner).

Submitted by: Centinel Financial Group, LLC. n

SINCE 1917

Reliable Strategies Material PlacementComplete, Specialists For Your Financial Needs  Group  Estate

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Continuity Plan Design Peter A. Sechoka, CLTC, AIF® Investment Advisor Representative psechoka@centinelfg.com 781.446.5005

Robert C. Basiri, RICP®

Investment Advisor Representative rbasiri@centinelfg.com 781.446.5043

CONCRETE PUMPING EQUIPMENT Multiple Employer Plans IMPORTANT DISCLOSURES Securities and investment advisory services offeredisthrough Royal Alliance Associates, Inc. (RAA), member FINRAfor / SIPC . RAA is A Multiple Employer Plan (MEP) is a retirement plan that adopted by two or more employers that are unrelated “TELEBELT” MOBILE CONVEYORS income tax purposes (i.e. not members of a controlledseparately group, commonly group, or marketing affiliated names, serviceproducts group). or A services owned andcontrolled other entities and/or MEPSLINGER may be a defined benefit pension plan or a defined contribution retirement planofmaintained by two or more STONE SERVICE references here are independent RAA.160 Gould Street, Suite 212, Needham

employers for the purpose of pooling investments and sharing administrative costs. MEPs typically maintain separate Heights, MA 02494. (781) 446-5000. 20190911-17413241 Pumps Up To 200 yds/hrfor • Booms Toadopting 142’ Reach accounts each ofUp the employers, and can have different plan designs for each adopting employer.

Broadridge Investor Communication Services, Inc. does of notscale provide investLine Pumps • Grout Pumps to offer and participate in a professionally MEPs enable employers administered plan by providing economies and ment, tax, or legal advice. The information presented here is not specific to any can often: Material Placement To 106’ individual’s personal circumstances.

• minimize fiduciary responsibility

reporting and disclosure requirements, takingTothe thematerial staff and employer 34 Topalian Street•• streamline theburden extent off thatofthis concerns tax matters, it is not intended or lower internal investment expenses for the employees and employer written to be used, and cannot be used, by a taxpayer for the purpose of avoiding PO Box 260187 penalties that may be imposed by the law. Each taxpayer should seek independent As a business owner, you should carefully consider the employer-sponsored retirement plans.

These straightforward plans Boston, MA 02126 advice from a tax professional based on his or her individual circumstances. These advantages of establishing an employer-sponsored retirement

allow you, as an employer, to make a contribution that is spread

are provided for general information and educational purposes based on you among the plan participants. You are not required to make an (617) 296-0290plan. Generally, you're allowed a deduction for contributionsmaterials publicly available information from sources believed to be reliable—we cannot asor acompleteness these materials. Theplan, information in these www.guerini.com however, you're required to include certain employees in thesure plan,the accuracy be made on regular basis.ofWith a profit-sharing a separate make to an employer-sponsored retirement plan. In return,

OCTOBER, 2019

annual contribution in any given year. However, contributions must

may change at any timeforand without and to give a portion of the contributions you make to those materials account is established each plan notice. participant, and contributions participating employees. Nevertheless, a retirement plan can are allocated to each participant based on the plan's formula (this provide you with a tax-advantaged method to save funds for your formula can be amended from time to time). As with all retirement own retirement, while providing your employees with a powerful plans, the contributions must be prudently invested. Each “BUY FROM THE ADVERTISERS IN CONSTRUCTION and appreciated benefit. participant's account must alsoOUTLOOK” be credited with his or her share of investment income (or loss).

Types of plans For 2018, no individual is allowed to receive contributions for his or

75

E.H. Perkins Construction, Inc. & Subsidiaries P.O. Box 301, Wayland, MA 01778 (508) 358-6161 • (781) 890-6505

-PLANT LOCATIONSQUINN-PERKINS S & G CO. Burlington (781) 272-0200 PANDOLF-PERKINS CO. Sterling (978) 422-8812 • (800) 339-3389 KANE-PERKINS CO. Hudson (978) 562-3436 • (800) 287-3436 GRAVEL • SAND • STONE FILL AND LOAM BITUMINOUS CONCRETE (PAVING) READY-MIX CONCRETE PRECAST CONCRETE PRODUCTS

E

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Equal Opportunity/Affirmative Action Employer 76

Advertisers’ Index ATS Equipment, Inc. .............................................................28 American Shoring, Inc........................................ Ins. Back Cvr. Aon Connstruction Services Group.......................................56 B2W Software, Inc.................................................................66 BakerCorp..............................................................................58 Benevento Companies............................................................8 Boro Sand & Stone Corp.......................................................62 Brennan Consulting...............................................................29 Dennis K. Burke, Inc..............................................................56 C&S Insurance Agency..........................................................40 Centinel Financial Group, LLC...............................................67 Concrete Systems, Inc...........................................................30 Core & Main.............................................................................4 Dagle Electrical Construction Corp.......................................34 Darmody, Merlino & Co., LLP..................................................9 Dedham Recycled Gravel......................................................59 DeSanctis Insurance Agency, Inc. ........................................25 Dig Safe System, Inc.............................................................64 The Driscoll Agency...............................................................64 Eastern Insurance Group, LLC..............................................54 Eastern States Insurance Agency, Inc..................................70 Eastpoint Lasers, LLC........................................................... 11 T. L. Edwards, Inc..................................................................72 Equify Financial.......................................................................6 Ferguson Waterworks............................................................33 Gorilla Hydraulic Breakers.....................................................25 L. Guerini Group, Inc..............................................................75 Hinckley Allen LLP.................................................................26 John Hoadley & Sons, Inc..................................................... 74 Hydrograss Technologies Inc................................................15 Industrial Safety & Rescue....................................................58 JESCO................................................................................... 41 P. A. Landers, Inc...................................................................12 Lawrence-Lynch Corp............................................................60 Lorusso Corp.........................................................................65 Lorusso Heavy Equipment, LLC..............................................2 MBO Precast, Inc...................................................................38 MJ-Hammer...........................................................................20 Mass Broken Stone Company...............................................25 Milton CAT...............................................................Back Cover Minuteman Trucks, Inc...........................................................69 NSI Contracting .....................................................................38 National Trench Safety..........................................................39 Norfolk Power Equipment, Inc...............................................61 North American Crane & Rigging LLC..................................50 North East Shoring Equipment, LLC.....................................62 Northland JCB..........................................................................9 Ocean State Oil......................................................................68 Palmer Paving Corp...............................................................66 Pawtucket Hot Mix Asphalt....................................................68 E. H. Perkins Construction Co., Inc.......................................76 Podgurski Corp...................................................................... 17 E. J. Prescott, Inc................................................Ins. Front Cvr. Putnam Pipe Corporation......................................................13 Rain For Rent-New England..................................................16 Ritchie Bros. Auctioneers......................................................31 Rogers & Gray Insurance......................................................22 Schmidt Equipment, Inc...........................................................1 Scituate Concrete Products Corp..........................................36 Scrap-It, Inc............................................................................49 Shea Concrete Products, Inc. ...............................................14 SITECH New England............................................................32 Starkweather & Shepley Ins. Brokerage, Inc........................18 Sunbelt Rentals......................................................................24 Tonry Insurance Group, Inc...................................................51 T-Quip Sales & Rentals, Inc..................................................51 United Concrete Products.....................................................21 United Rentals Trench Safety................................................46 Webster One Source.............................................................62 C. N. Wood Co., Inc. .............................................................10 Woodco Machinery, Inc.........................................................48 Xylem, Inc...............................................................................70

“BUY FROM THE ADVERTISERS IN CONSTRUCTION OUTLOOK”

OCTOBER, 2019

• We can provide you with the world’s largest or smallest trench box or shoring system • Get high production numbers while keeping your workers safe • We will show you how with our on-site supervision.

• Contact us for the world’s very best shoring

SALES RENTALS SERVICE REPAIRS TRADE-INS RECERTIFICATION

• We will deliver on time, every time.

We’ll bring it with our fleet of trucks; where you want it, E when you want it, EVERYTIM • We have been told by our customers that “no one beats our service” So don’t take our word for it, just ask the people who use our product

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Call us for local Metropolitan New York, New Jersey and Connecticut Inquiries.

Factory Direct Stores: For New England: Maine, Vermont, New Hampshire and Western NY State

Call our Boston area location: 283 E Cherry Street Shrewsbury, MA 01545

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Slide System with Portable Safety Rail Installed

Call our Baltimore area location: 506 Pulaski Highway Joppa, MD 21085

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Or Phone us Toll Free from anywhere:

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Financing offers valid from October 1, 2019 to January 31, 2020. Financing, zero down and published rate terms are subject to credit approval through Cat Financial for customers who qualify. Buyers are not guaranteed to qualify. Higher rates may apply for buyers with lower credit rating or qualifications. Flexible payment terms available to those who qualify. Offer subject to machine availability. Offer may change without prior notice and additional terms and conditions may apply.