Utility and Transportation Contractor December 2018

Utility & Transportation

contracTOR

Earle

Celebrates 50 Years

december 2018

I

de i s n

:

of 0 rp. es 10 o C t bra ent pm Cele i u Eq erica Am rs Yea

president’s message

From the desk of: joe walsh

W

ith the midterm elections behind us, the Nation moves forward with a divided House and Senate.

We may have lost some friends in the House, but the New Jersey delegation is now poised to roll up their sleeves and get to work. We look forward to the continued conversation on a large-scale national infrastructure package, and hope that the Administration and newly-flipped Congress can continue working together to pass bipartisan initiatives.

the Portal Bridge), and the Raritan Bridge project need to be divided into smaller pieces to make sure that New Jersey contractors have the opportunity to capture the work. At our recent meeting with the management group for the Gateway Tunnel, we were encouraged by their openness to breaking up the program.

Greater competition will result in greater savings for taxpayers, and we will continue to push for these and all mega-projects to be bid practically and with appropriate contract sizes.

Our Association leadership has always done a great job maintaining relationships and working with our Congressional Representatives from New Jersey to ensure that they understand the needs of our state and the importance of federal financial support to fix our failing infrastructure. We’re excited to continue these critical conversations as our Congressional delegation advances into leadership roles in some of our industry’s key committees.

In the State House, we will continue to push our Local Aid bill, which would increase accountability for grant recipients at the county and local level. This bill will ensure counties and municipalities spend gas tax-supported funding on needed infrastructure improvements in a timely manner.

Looking to the state ballots, it was encouraging to see Ballot Question 1 prevail. The measure creates project grants for vocational schools and technical education, as well as school water infrastructure and security. This victory shows that New Jersey voters understand the value of an educational system that supports vocational programs that will create opportunities and careers in infrastructure construction. Our industry offers high paying jobs with good health insurance and retirement programs, yet still we are faced with a major deficiency of skilled labor. The funding created by this program will help make sure that New Jersey workers are aware of the benefits of a career in construction, and that they’re technically trained and ready to join our workforce.

Our Association is working hard with leadership in Trenton and at our state agencies to break large programs into multiple projects. Specifically, the Gateway Tunnel program, (which includes

2 Utility & Transportation Contractor | december| 2018

Congratulations to the Earle Family on their 50th anniversary celebration. The leadership of the Earle brothers in their company, industry, and communities is second to none. Congrats!

Congratulations to Equipment Corporation of America celebrates 100 years.

ECA has been a partner company to many of our contract members over the years - congrats and thanks for all your support.

As we turn the page on 2018, I can assure you this Association will be fighting for our industry and the contractors, associate members, and taxpayers that keep this state moving.

I wish you a Merry Christmas, and hope everyone has a happy and prosperous New year.

Best regards,

Joe Walsh

46

Cover 47

65

92

90

CONTENTS

Cover story Earle

celebrates 50 years

DEPARTMENTS

FEATURES

2 9 15 21 29 35 43 57

64 equipment corp. of america celebrates 100 years 92 rebuilding the sea bright & monmouth beach sea walls

President’s Message Financial Overview Legal Dig Accounting Corner Legislative News Safety Perspective Labor Relations The pipeline

NEWS 73 81 87 90

what to do after a construction accident the power of storytelling for effective communication employee healthcare & productivity safety committee - a year in review

Published Bimonthly During 2018

1670 Route 34 North Farmingdale, NJ 07727 PO Box 728 Allenwood, NJ 08720 PH: (732) 292-4300 FAX: (732) 292-4310 www.utcanj.org

Publisher: Robert A. Briant, Jr. Editor: Helene Nasdeo Editorial Contributors: Zoe Baldwin, Dan Neville, Dan Kennedy Advertising Manager: Helene Nasdeo Production/Graphics: Helene Nasdeo, Lauren Hagan Circulation: Helene Nasdeo Printed By: American Plus Printers Affiliations: ARTBA, Clean Water Construction Coalition UTILITY AND TRANSPORTATION CONTRACTOR (ISSN 0192-4843) is published six times a year by the Utility and Transportation Contractors Association of New Jersey, 1670 Highway 34 North, Farmingdale, NJ 07727. Periodical postage paid at Farmingdale, NJ and additional mailing offices.

POSTMASTER: Send address changes to UTILITY AND TRANSPORTATION CONTRACTOR, PO Box 728, Allenwood, NJ 08720.

Utility & Transportation Contractor | december| 2018 3

By: bill ruckert, provident bank

T

echnology has provided significant efficiencies for the banking industry and its customers. From the introduction of ATM’s in the early 80s to the more recent adoption of mobile banking, these improvements have led to cost and time savings as well as an improved conveyance of information from your bank. The pace of these technological advancements has been extremely rapid causing the need to re-familiarize yourself with new and improved products. A quick glance of these services can be done in a “dashboard” environment similar to other software that provides key information about your company.

ventative services is readily available to protect your company. Positive Pay allows you to electronically tell the bank what checks are issued and valid, and those not listed will get rejected.

Account Reconcilement also detects fraud as an unauthorized check will be uncovered by the bank and referred to the business owner for processing. We mentioned ACH earlier as an add-on for payment/collection purposes, and while it does create significant efficiencies, it also generates risk. This concern is easily mitigated with an ACH debit product and/or using a “dummy” account number, U-PIC, for ACH transactions.

For example, while business checking accounts have remained relatively the same over the years, the products behind them have improved dramatically. Automated Clearing House (ACH) payments and receipts reduce the time needed for paying bills and collecting accounts receivable. It is extremely automated, provides fraud protection (more on that later) and is easy to use.

Investment sweep services allow companies to reduce interest expense and/or increase interest income. Many companies have multiple accounts with varying levels of deposit balances, all of which can be used to offset service charges. Regardless of the number of bank services you use, “account analysis” statements are available from your bank which detail cost, volume and the potential to more effectively utilize excess account balances.

Commercial lending has also benefitted from new technology even though the products themselves have remained relatively unchanged. Advances and pay downs on lines of credit can be made using the on-line banking service discussed above, anytime and anywhere. Key terms and conditions of all commercial loans can be accessed on-line as well, as business owners look to improve or enhance their borrowing relationship. Letter of credit services are now completed in a 100% automated environment providing faster payment and collection of funds with better adherence to the instructions on bills of lading or the letters of credit themselves.

Treasury management products have probably had the most revolutionary changes over the years starting with on-line banking. Remember the days when you had to call the bank to find out your balance, whether or not a check cleared, initiate a wire transfer and the list goes on? On-line banking eliminates all of those phone calls and gives you the tools needed to complete tasks while sitting at your desk, home, car, etc. Idle deposit balances can be more effectively used with services like Controlled Disbursement and/or Zero Balance Accounts. Remote depositing of checks has provided great benefits to companies eliminating the need to send someone to the bank and enabling more timely collection of deposits and check data which can be stored, downloaded and even applied to your accounts receivable ledger for reconciliation purposes. More recent enhancements to these services include integrated payables and receivables, same-day ACH transactions and real-time payments, all of which provide faster, more secure and greater efficiency in the movement of funds.

Fraud prevention is at the forefront of risk management as the bad guys keep getting smarter. Here again, a dashboard of pre-

Financial overview

a banking dashboard

Wealth Management services have been using technological advances for years, not only on trading floors but also as product lines have broadened to help meet customer needs. Financial planning is more effective when the bank and its customers can review pertinent information in a timely and up to date environment. This information also provides benefits to the tax advice provided by the bank as well as trust and estate initiatives put in place for future generations.

As you can see, the dashboard of bank services is broad in scope but can and should be narrowed down to individual requirements. In order to ensure your dashboard is complete and all-inclusive, you must be aware of the state of the art services in the marketplace. Your banker should be ready willing and able to thoroughly discuss an appropriate dashboard of services, and customers should insist on being kept up to date on the ever changing bank products available.

I would like to take this opportunity to congratulate our friends Rob, TJ, and Michael Earle and the entire Earle organization on their 50th Anniversary; well done all. Also, congratulations to Equipment Corporation of America celebrating its 100th year in business; that is quite a feat.

Utility & Transportation Contractor | december| 2018 9

By: adrienne l. isacoff, florio, perrucci, steinhardt & cappelli

I

t’s the time of year when everyone tries to be a little nicer to each other. But what about the rest of the year? Does encouraging management to be respectful to employees, or employees to treat each other with consideration interfere with a company’s goals for productivity and financial success? Do managers feel that courtesy impinges on their ability to criticize an employee? Do employees feel that directives to be “politically correct” impede their ability to enjoy a good laugh at the water cooler?

If so, you’re probably just doing it wrong. Establishing rules for civility and modeling civil behavior doesn’t put everyone in a good behavior straightjacket. On the contrary, companies thrive when everyone working there feels comfortable voicing their opinions when they disagree on work-related issues. When Ursula Burns became CEO of Xerox in 2009 she described how the Fortune 500 company suffered from “terminal niceness.” Burns said that “when we’re in the Xerox family, you don’t have to be as nice as when you’re outside of the family. I want us to stay civil and kind, but we have to be frank.” It is up to managers to set the tone by encouraging people to speak up, while teaching through example how to have difficult conversations and managing any disagreements on their teams.

What does this balance between frank discussions, while avoiding personal conflict, look like? There is simply no room for discourteous behavior in the workplace. Old-fashioned manners matter – this isn’t something new or something that reflects any particular political party.

Criticism must be provided in a constructive way that doesn’t belittle the individual. The best type of communication to an employee identifies the mistake or the failure to achieve a goal,

and then provides an opportunity for the employee to prove their value. If they still don’t make the grade, they probably shouldn’t be working for you anymore. But providing opportunities for improvement and growth will motivate employees to give their best. Victor Lipman, a regular contributor to Forbes, explains the circle of poor behavior in the workplace: the manager treats the employee rudely; the demoralized employee performs worse on routine tasks and doesn’t contribute fully to team tasks; the team feels stressed and doesn’t meet the job goals; the manager feels justified in letting loose at the entire team.

Legal Dig

what management can gain by encouraging civility

Christine Porath, a business school professor at Georgetown University, reported her survey of employees in 17 industries in an article in the New York Times called “No Time to be Nice at Work.” Over 40% of the employees explained that they did not act civilly because “they have no time to be nice.” But managers must recognize that not treating employees respectfully is tantamount to saying you don’t have time to treat people in a way that will get good results. And it is managers who set the tone at work.

Stanley M. Bergman, a member of Fortune’s CEO Initiative, pointed to the relationship between the late U.S. Supreme Court Justice Antonin Scalia and Justice Ruth Bader Ginsberg. While they rarely agreed on controversial issues, they shared a deep personal respect for one another. Justice Scalia described himself and Justice Ginsberg as “the odd couple,” saying, “What’s not to like? Except her views on the law.” During Justice Ginsberg’s eulogy for Justice Scalia, she noted, “In the words of a duet for tenor Scalia and soprano Ginsberg (who shared a love of opera), we were different, yes, in our interpretation of written texts, yet one in our reverence for the Court and its place in the U.S. system of governance.”

In this season of peace and light, we can all strive to find common ground in our jobs, seeing ourselves as members of a team and, more importantly, as human beings who, by being civil, can find the best in ourselves and in each other.

Utility & Transportation Contractor | december| 2018 15

tax year 2018 tax planning ideas for business By: salvatore schibell, CPA, Lawson, Rescinio, Schibell & Assoc. P.C.

Deferring Income into 2019 Deferring income to the next taxable year is a time-honored year-end planning tool. If you expect your taxable income to be higher in 2018 than in 2019, or if you operate as anything except a C corporation and you anticipate being in the same or a higher tax bracket in 2018 than in 2019, you may benefit by deferring income into 2019. With the passage of tax reform largely going into effect in 2018, new considerations may need to be made for the end of 2018. Some ways to defer income include: Use of Cash Method of Accounting: By adopting the cash method of accounting instead of the accrual method, you can generally put yourself in a better position for accelerating deductions and deferring income. There is still time to implement this planning idea, because an automatic change to the cash method can be made by the due date of the return including extensions. C corporations, partnerships and partnerships having a C Corp as a partner with average annual gross receipts of $25 million or less for the prior three taxable years can make an automatic change to the cash method provided inventories are not a material income producing factor. Sole proprietors, limited liability companies (LLCs), partnerships, and S corporations can change to the cash method of accounting without regard to their average annual gross receipts. Delay Billing: If you are on the cash method, delay year-end billing to clients so that payments are not received until 2019. A single $25 million gross receipts test has been put in place by the Tax Cuts and Jobs Act for determining whether certain taxpayers qualify as small taxpayers that can use the cash method of accounting, are not required to use inventories, are not required to apply the UNICAP rules (capitalizing general and administration expenses), and are not required to use the percent of completion method for a small construction contract. The exception for the use of inventories for taxpayers that qualify as a small business is not required to use inventories, effective after December 31, 2017. A business that meets the $25 million gross receipts test, defined as a small business, can use a method of accounting for inventories that; treats inventories as non-incidental materials and supplies; or conforms to the businesses financial accounting treatment of inventories. A business financial treatment of inventories is the method of accounting reflected in a financial

statement or if the business does not have a financial statement, the method used to prepare the books and records in accordance with accounting procedures. In my opinion the accounting method used for tax purposes relating to inventories must not distort the taxable income reported.

Installment Sales: Generally, a sale occurs when you transfer property. If a gain will be realized on the sale, income recognition will normally be deferred under the installment method until payments are received, so long as one payment is received in the year after the sale. So, if you are expecting to sell property prior to the end of 2018, and it makes economic sense, consider selling the property and report the gain under the installment method to defer payments (and tax) until next year or later.

Interest and Dividends: Interest income earned on Treasury securities and bank certificates of deposit with maturities of one year or less is not includible in income until received. To defer interest income, consider buying short-term bonds or certificates that will not mature until next year. Unless you have constructive receipt of dividends before year-end, they will not be taxed to you in 2018.

Accounting Corner

A

s 2018 draws to a close, there is still time to reduce your 2018 tax bill and plan ahead for 2019. This article highlights several potential tax-saving opportunities for you to consider.

Accelerating Income into 2018 You may benefit from accelerating income into 2018. For example, in the case of non-C corporation taxpayers, you may anticipate being in a higher tax bracket in 2019, or perhaps you need additional income in 2018 to take advantage of an offsetting deduction or credit that will not be available to you in future tax years. Note, however, that accelerating income into 2018 could be disadvantageous if you expect to be in the same or lower tax bracket for 2019. If you report your business income and expenses on a cash basis, issue bills and pursue collection before the end of 2018. Also, see if some of your clients or customers are willing to pay for January 2019 goods or services in advance. Any income received using these steps will shift income from 2019 to 2018.

Qualified dividends are subject to rates similar to the capital gains rates. Qualified dividend income is generally subject to a 15% or 20% rate dependent upon the new thresholds set by the 2017 tax act. The new thresholds are not tied to specific income tax brackets, but roughly speaking the 20% rate will apply to those in the 35% or 37% rate bracket, while the 15% rate applies to those at or above the 22% rate. Note that qualified dividends may be subject to an additional 3.8% net investment income tax. Qualified dividends are typically div-

Utility & Transportation Contractor | december| 2018 21

idends from domestic and certain foreign corporations. The corporate board may consider the tax impact of declaring a dividend on its shareholders. If you are not in the highest capital gains bracket for 2018, but you expect to be in 2019, consideration should be made as to authorizing any dividend payment prior to the end of 2018 to utilize the 15% favorable tax rate vs. the 20% rate at higher income levels.

Accounting Corner

Accelerating Business Deductions Bad Debts: If you use the accrual method, you can accelerate deductions into 2018 by analyzing your business accounts receivable and writing off those receivables that are totally or partially worthless. By identifying specific bad debts, you should be entitled to a deduction. You may be able to complete this process after year-end if the write-off is reflected in the 2018 year-end financial statements. For non-business bad debts (such as uncollectible loans), the debts must be wholly worthless to be deductible, and will probably only be deductible as a capital loss.

2018 Bonuses: In general, if you are paying a bonus to employees, you may accrue that liability and deduct that amount if all the events are satisfied that fix that liability even though you pay the bonus next year, and you do not have a unilateral right to cancel the bonus at any time prior to payment. Generally, you will accelerate the bonus deduction into 2018 while your employees will report the income in 2019 if they are cash method taxpayers. Furthermore, any compensation arrangement that defers payment will be currently deductible only if paid within 2.5 months after the employer's year-end.

Highlights of Tax Credits Research and Development Tax Credit: Beginning in 2016, eligible small businesses ($50 million or less in gross receipts) may claim the research and development tax credit against alternative minimum tax liability (which no longer applies to C corporations due to the repeal of the corporate AMT by the 2017 tax act), and the credit can be used by certain qualified small businesses against the employer's payroll tax (i.e., FICA) liability.

Employer Wage Credit for Employees in the Military: Some employers continue to pay all or a portion of the wages of employees who are called to active military service. The amount of the credit is equal to 20% of the first $20,000 of differential wage payments to each employee for the taxable year. Beginning in 2016, employers of any size with a written plan for providing such differential wage payments are eligible for the credit.

Work Opportunity Credit: The work opportunity credit is an incentive provided to employers who hire individuals in groups whose members historically have had difficulty obtaining employment. The credit gives a business an expanded opportunity to employ new workers and to be eligible for a tax credit based on the wages paid. The credit is available for first-year wages paid or incurred for employees hired and who began work during certain years the credit was available. Employers who hire qualified long-term unemployed individuals (i.e., those who have been unemployed for 27 weeks or more) will be entitled to an increased credit amount (i.e., 40% of the first $6,000 of wages) for new hires that begin to work for an employer on or after January 1, 2016 through December 31, 2019.

22 Utility & Transportation Contractor | december| 2018

Qualified Small Business Stock Exclusion of Gain Attributable to Certain Small Business Stock: Stock acquisitions that qualify as “small business stock� under § 1202 are subject to special exclusion rules upon their sale as long as a five-year holding period is satisfied. A 100% gain exclusion applies for qualified small business stock acquired after September 27, 2010 and held for more than five years. A 75% exclusion applies for qualified small business stock acquired after February 17, 2009, and before September 28, 2010 (and held for at least five years). A 50% exclusion applies for qualified small business stock acquired before February 18, 2009 (and held for at least five years).

General Business Considerations Excess Business Loss: Beginning in 2018 and until 2025, taxpayers other than C corporations are limited in their ability to deduct business loss. Under the new rule, excess business losses that are not allowed for the tax year are instead carried forward and treated as part of the taxpayer's net operating loss (NOL) carryforward in subsequent tax years. An excess business loss for the tax year is the excess of aggregate deductions of the taxpayer attributable to the taxpayer's trades and businesses over a threshold amount.

The threshold amount for a tax year is $500,000 for married individuals filing jointly, and $250,000 for other individuals, with both amounts indexed for inflation, e.g. If the combined business losses for a year exceed $500,000, relating to married individual filings, the excess will be carried forward to future tax years and applied against business income. In the case of a partnership or S corporation, the provision applies at the partner or shareholder level. A Net Operating Loss carried forward can only offset 80% of taxable income in carry forward year.

Limits on Business Interest Deduction: For tax years beginning after Dec. 31, 2017, every business, regardless of its form, is generally subject to a disallowance of a deduction for net interest expense in excess of 30% of the business's adjusted taxable income.

The net interest expense disallowance is determined at the tax filer level. However, a special rule applies to pass-through entities, which requires the determination to be made at the entity level, for example, at the partnership level instead of the partner level.

For tax years beginning after Dec. 31, 2017 and before Jan. 1, 2022, adjusted taxable income is computed without regard to deductions allowable for depreciation, amortization, or depletion.

An exemption from these rules applies for taxpayers (other than tax shelters) with average annual gross receipts for the three-tax year period ending with the prior taxable year that do not exceed $25 million. The business-interest-limit provision does not apply to certain regulated public utilities and electric cooperatives. Real property trades or businesses can elect out of the provision if they use ADS to depreciate applicable real property used in a trade or business. Farming businesses can also elect out if they use ADA to depreciate any property used in the farming business with a recovery period often years or more. An exception from the limitation on the business interest deduction is also provided for floor plan financing (i.e., financing for the acquisition of motor vehicles, boats or farm machinery for sale or lease and secured by such inventory).

Equipment Purchases: If you purchase equipment, you may make a “§ 179 election,” which allows you to expense (i.e., currently deduct) otherwise depreciable business property, including computer software and qualified real property. Air conditioning and heating units placed in service during tax years beginning in or after 2016 are eligible for this deduction. You may elect to expense up to $1,000,000 in 2018 of equipment costs (with a phaseout for purchases in excess of $2,500,000 in 2018), and the deduction is subject to a business income limit.

30 days of your inventory date. The inventory does not have to be sold within the 30-day time frame.

In addition, careful timing of equipment purchases can result in favorable depreciation deductions in 2018. In general, under the “half-year convention,” you may deduct six months' worth of depreciation for equipment that is placed in service on or before the last day of the tax year. (If more than 40% of the cost of all personal property placed in service occurs during the last quarter of the year, however, a “mid-quarter convention” applies, which lowers your depreciation deduction.)

If you have income from a pass-through entity (or sole proprietorship) you may be entitled to a deduction equal to the lesser of the deductible amount of your Qualified Business Income (QBI), (generally 20% subject to the W-2 wage limitation) or 20% of your taxable income. You may also be able to deduct 20% of your qualified REIT dividends and qualified publicly traded partnership income. Special rules apply for these additional items. The deduction applies to reduce your taxable income and is available whether or not you itemize. The deduction does not impact your calculation of self-employment tax.

Vehicles Weighing Over 6,000 Pounds: A popular strategy in recent years is to purchase a vehicle for business purposes that exceeds the depreciation limits set by statute (i.e., a vehicle rated over 6,000 pounds). Doing so would not subject the purchase to the statutory dollar limit for depreciation: $10,000 for 2018; $10,000 in the case of vans and trucks (if bonus depreciation is taken, the 2018 amounts increase to $18,000 for cars and $18,000 for vans and trucks). Therefore, the vehicle would qualify for the full equipment expensing dollar amount. However, for SUVs (rated between 6,000- and 14,000-pounds gross vehicle weight) the expensing amount is limited to $25,000.

NOL Carryforward Period: If your business suffers net operating losses for 2018, you generally are able to carry forward those losses against taxable income indefinitely. Carrybacks are generally disallowed with exceptions for farming and non-life insurance companies; which can be carried back two years. A C corporation may file Form 4466, Corporation Application for Quick Refund of Overpayment of Estimated Tax, to recover any overpayment of estimated tax for the tax year over the final income tax liability expected for the tax year. For losses expected to be incurred on an individual return, the filing of Form 1045 Application for Tentative Refund may be applicable. Be aware that if a corporation has a loss in 2018 and income in 2019, it will have to make estimated tax payments for 2019.

Inventories, Sub-Normal Goods: You should check for subnormal goods in your inventory. Subnormal goods are goods that are unsalable at normal prices or unusable in the normal way due to damage, imperfections, shop wear, changes of style, odd or broken lots, or other similar causes, including second-hand goods taken in exchange. If your business has subnormal inventory as of the end of 2018, you can take a deduction for any write-downs associated with that inventory provided you offer it for sale within

QBI is your net amount of qualified items of income, gain, deduction, and loss with respect to each of your “qualified trades or businesses.” Qualified items are items that are allowed in the determination of your taxable income for the tax year and are effectively connected with the conduct of a trade or business within the United States or Puerto Rico. Many items of income, gain, deduction, and loss are not qualified items. These items generally include capital gains and loss, dividends, interest, etc. In the case of a partnership or S corporation, your net amount of qualified items is the net amount of your allocable share of each qualified item. QBI does not include any amount paid by an S corporation to its shareholders that is treated as reasonable compensation, or any guaranteed payment by a partnership to a partner for services rendered with respect to the trade or business. Finally, the IRS may issue regulations providing that any amount paid by a partnership to a partner who is not acting in his or her capacity as a partner for services rendered to the partnership is not QBI. While the former three payment items are not QBI, they may serve to reduce QBI if the entity takes a deduction for these payments. Note that the trade or business of being an employee is not a qualified trade or business and, therefore, no deduction is allowed for your income from the trade or business of being an employee. If your net amount of QBI from all qualified trades or businesses during the tax year is a loss, it is carried forward as a loss from a qualified trade or business in the next tax year and reduces your deduction in a subsequent year (but not below zero) by 20% of any such carryover loss. If you have multiple trades or businesses, it is possible that they can be aggregated together as one under special rules.

Accounting Corner

Bonus Depreciation: For property acquired and placed in service during the period beginning on September 27, 2017 and running through 2022 (with an additional year for certain property with a longer production period), the bonus depreciation percentage is 100%, with a phase down beginning in 2023 (2024 for longer production period property).

Qualified Business Income Deduction: The 2017 tax act added a new deduction for individuals, trusts, and estates who are owners of non-C corporation businesses. The deduction is for qualified business income in addition to qualified publicly traded partnership income, qualified REIT dividends and income of, or received from, certain agricultural and horticultural cooperatives.

Calculation of the deduction is a fact intensive inquiry. If you claim the deduction and you understate the amount of tax required to be shown on your return by 5% or more, you could be subject to the substantial understatement of tax penalty. If your taxable income does not exceed a threshold of $315,000 (joint filers), or $157,500 (all other taxpayers), your deduction is generally the lesser of 20% of your QBI or 20% of your taxable income. If your taxable income exceeds the threshold there are two additional rules you need to be aware of.

Utility & Transportation Contractor | december| 2018 23

Accounting Corner

Is your pass-through income from a “qualified trade or business�? A qualified trade or business is defined as any trade or business other than a specified service trade or business or the trade or business of being an employee. A specified service trade or business cannot be aggregated with another trade or businesses. While no deduction is allowed for your income from the trade or business of being an employee, a deduction is allowed for your income from a specified service trade or business to the extent that your taxable income does not exceed the threshold amount. However, as your taxable income exceeds the threshold amount, your specified service trade or business income is partially or fully excluded from the deduction. The exclusion phases in based on the ratio of your table income in excess of the threshold amount to $100,000 (joint filers) and $50,000 (all other taxpayers). Thus, no deduction is allowed for your income from a specified service trade or business if your taxable income is more than $415,000 (joint filers) or $207,500 (all other taxpayers).

A specified service trade or business generally involves the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners (generally, a trade or business where a person receives fees, compensation, or other income, for endorsing a product, use of their likeness or other associated symbols, or appearances on television or other media), or which involves the performance of services that consist of investing and investment management, trading, or dealing in securities, partnership interests, or commodities. If only a small portion of the gross receipts of your trade or business are attributable to one of the listed fields, a de minimis rule may permit you to treat your trade or business as a qualified trade or business.

Application of the W-2 wage limitation: If your taxable income exceeds the threshold amount, the deductible amount of your QBI is equal to the lesser of 20% of your QBI with respect to the trade or business or the W-2 wage limitation.

As your taxable income exceeds the threshold above, the W-2 wage limitation phases in and you will reduce the excess amount of your deduction based on the ratio of your table income in excess of the threshold amount to $100,000 (joint filers) and $50,000 (all other taxpayers). The W-2 wage limitation is equal to the greater of (1) 50% of the business's W-2 wages, or (2) the sum of (a) 25% of the business's W-2 wages, plus (b) 2.5% of the unadjusted basis (immediately after acquisition) of all qualified property.

In the case of a partnership or S corporation, you take into account your allocable share of W-2 wages and unadjusted basis (immediately after acquisition) of qualified property for the tax year. W-2 wages are the total wages subject to wage withholding, elective deferrals, and deferred compensation paid by the qualified trade or business with respect to employment of its employees during the calendar year ending during the tax year of the taxpayer. W-2 wages do not include (1) any amount that is not properly allocable to the QBI as a qualified item of deduction, and (2) any amount that was

24 Utility & Transportation Contractor | december| 2018

not properly included in a return filed with the Social Security Administration on or before the 60th day after the due date (including extensions). Amounts paid to independent contractors are not W-2 wages. If your business uses a third party such as a certified professional employer organization to pay your employees’ wages, you may still be able to include these wages in your W-2 wage calculation subject to certain additional rules.

Qualified Property: Qualified property is tangible property of a character subject to depreciation (1) that is held by, and available for use in, the qualified trade or business at the end of the tax year, (2) that is used in the production of QBI, and (3) for which the depreciable period has not ended before the end of the tax year. The depreciable period with respect to qualified property is the period beginning on the date the property is first placed in service by the taxpayer and ending on the later of (1) the date 10 years after that date, or (2) the last day of the last full year in the applicable recovery period that applies to the property. The unadjusted basis (immediately after acquisition) of qualified property is determined on the date the qualified property is placed in service.

Health Care and Other Employee Benefits Pay or Play Excise Tax: For the 2018 plan year, if you have 50 or more full-time equivalent employees, you could be subject to an excise tax, which could be as much as $2,320 per full-time employee, for failure to offer a health care plan that is minimum essential coverage to at least 95% of your full-time employees if at least one employee obtains subsidized coverage through a public health insurance exchange. The first 30 workers are excluded from the penalty excise tax. If you do offer coverage but it is not adequate or is unaffordable, the excise tax could be $3,480 for each full-time employee who obtains subsidized coverage through an exchange. Smaller employers should review whether they have undergone, or will soon undergo, any changes to their business structure that would require them to be aggregated with other entities and subject them to potential liability. Larger employers should consider their health care plan options in light of this potential excise tax liability.

Health Care Reporting: Filings for 2018 Forms 1095-C and Form 1094-C, generally for employers with 50 or more full-time equivalent employees, and Forms 1095-B and Form 1094-B, for employers with self-insured plans and other providers of minimum essential coverage, are due specifically by February 28, 2019, if you are filing on paper, or by April 1, 2019, if you are filing electronically. Statements to employees are due by January 31, 2019.

Extensions are available.

Health Reimbursement Arrangements: Certain small employers that want to assist their employees in obtaining health insurance may choose to set up a qualified small employer health reimbursement arrangement. The QSEHRA, unlike other health reimbursement arrangements, is a tax-favored arrangement that is not considered a group health plan and does not expose the employer to excise taxes for not satisfying Affordable Care Act requirements. It's available to employers that have fewer than 50 full-time equivalent employees, do not offer any health plan, and meet other requirements.

legislative update By: zoe baldwin

S

First, our industry saw the passage of the first non-legislative gas tax increase thanks to an escalator provision in the 2016 reauthorization. The provision allows the Treasurer to adjust the rate if the revenue from gas does not meet the amount necessary to replenish the Transportation Trust Fund. Revenues fell $125 million short in the fiscal year that ended in July and this important provision ensures that NJ will be able to meet its obligation to fund the state's many pressing transportation infrastructure needs. News outlets attempted to cry outrage, but the 4.3-cent increase went largely unnoticed once it took effect in October.

At the federal level, water infrastructure was the big winner this year with the passage of a bipartisan WRDA bill that will bring the drinking water revolving fund to 180% of current levels by 2020. UTCA has been a dogged advocate for this critical fund and we are incredibly thankful for the full support of our entire Congressional delegation. For more details, see our explainer in this month’s Pipeline on page 57.

This federal funding victory also ties into something else we’re thankful for – progress on our Comprehensive Water Infrastructure Investment Program, described in detail in the August magazine. UTCA staff spent a good deal of time over the past twelve months working with allies in the business, labor, and environmental communities to refine, improve, and most importantly, keep up momentum on a statewide water infrastructure program. We look forward to continued collaboration in 2019 as we come together in support of a long-term, structural fix to one of NJ’s biggest challenges.

In Trenton, our industry had a few wins in the state house despite the sometimes-contentious climate. Governor Christie signed our changed conditions law, which requires contracting units to include changed conditions provisions in all construction contracts governed by local public contract law. This was a great lame-duck success, and we are now working on the regulations through a collaborative process with the Department of Community Affairs, the Society of Municipal Engineers, and others. Also passed this year was public-private partnership legislation, giving the state another tool to fund transportation and

other infrastructure projects, in addition to the recycled asphalt pavement program now signed into law.

On the local aid front, the project pipeline got a little wider this year as well. We are very excited to see the transportation arm of the Infrastructure Bank rev up and prepare to start putting out work. The I-Bank is expected to release $40 million worth of projects by the close of this fiscal year, and twice that in FY20.

Sometimes we need to squint a little to see a silver lining, but progress is often incremental and even small victories deserve acknowledgement. So last (but not-at-all-least) on our far-from-comprehensive list is the slow but hopeful progress of NJ Transit reform. Transit received a healthy bump to operations funding in the FY19 budget, originally part of a larger effort to curtail capital to operating transfers. Unfortunately, more than a decade of underfunding has left the agency in dire straits and they had to repeat the practice this year. However Governor Murphy’s first budget, along with a bill he recently signed that requires Transit to leverage its real estate into revenue-generating opportunities, sends a clear message that this administration fully intends to make good on the campaign commitment to straighten out the beleaguered agency. Combined with the positive train control project at nearly 90% complete and consistent messaging and action from Governor Murphy, it seems NJ Transit is finally on (or at least getting close to) the right track.

Legislative News

ilver linings playbook 2018 was…one for the books. No matter where you look it’s been a year of tumult and change, but as we launch into the holiday season and reflect on the year that was, it’s important to remember that we have much to be thankful for despite the challenges ahead.

So as you gather with friends and family for this season of thanks, we hope you reflect upon your blessings and look to the new year with renewed sense of purpose and optimism. In the words of Robert Louis Stevenson, “Keep your eyes open to your mercies.

The man who forgets to be thankful has fallen asleep in life.”

Winning is only half the battle New Jersey voters turned out in record number this year for the most anticipated midterm elections in recent history. According to a USA Today review of historical election data, 53.7 percent of registered NJ voters participated this year compared to a mere 35.8 percent last time around in 2014. Partisan balance has returned to Congress, as the Republican-led Senate maintained the status quo while the House fell under Democratic control for the first time in eight years.

We lost some friends in our congressional delegation that we wish we hadn’t but look to the coming session as a chance for real progress. A divided Congress has the potential – and most

Utility & Transportation Contractor | december| 2018 29

likely the will - to advance a meaningful federal infrastructure package. Similarly, once the new session starts New Jersey hands could pick up gavels in our most important House committees.

Legislative News

At the top of the list is Monmouth County Democrat Frank Pallone is expected to lead the House Energy & Commerce Committee, which has broad jurisdiction over critical industry issues including water, environmental remediation, energy, and motor vehicle safety issues. Congressman Pallone has always been a superb advocate for our state and we look forward to working with him in the new role.

Up in Hudson County, Rep. Albio Sires stands to head up the House Foreign Affairs Subcommittee on the Western Hemisphere. He currently serves on two important subcommittees of the House Transportation & Infrastructure Committee: Highways and Transit, as well as the subcommittee on Railroads, Pipelines, and Hazardous Materials with Rep. Donald Payne.

Congressman Bill Pascrell, longtime infrastructure advocate and friend to the industry, could take the gavel of the Ways and Means subcommittee on Trade. And finally, Congressman Donald Payne could pick up a gavel in the Emergency preparedness subcommittee of Homeland Security.

Paid Family Leave Legislation to expand New Jersey’s paid family leave law had several hearings in the early Fall, passing the full Senate and two Assembly Committees. The measure would double the length of time employees could take leave from work from six weeks to twelve, and increase the income benefit they would receive while they were out. It also would cover more small businesses by requiring those with just 30 employees or more to conform. Many businesses are already scrambling to comply with a new paid sick leave law, and UTCA has been working on this legislation with our partners in the business community to secure rational protections for employers that help protect against the increasing costs of doing business in New Jersey.

Apprenticeship It’s no secret that in recent years the primary pathway into the job market — a college degree — has left an increasing number of graduates struggling to find work while facing large amounts of student-loan debt. This trend has led to a renewed interest promoting apprenticeship programs at the state and local levels, and New Jersey is no exception.

Earlier this Fall, legislation began moving through both houses of the state legislature that would mandate participation in a DOL-approved apprentice program as a condition of contractor registration. While the Association is supportive of the intent of the legislation, a3666/s3071 is currently written in a way that would make compliance all but impossible for any contractor – union or not – because it does not account for the existing workforce. The current draft would require contractors to certify that its workers have completed or are actively participating in an apprenticeship program in order to register with the state. Much of the current workforce predates apprenticeship programs and forcing seasoned employees to return to the classroom is not an option.

UTCA has been working with the legislature and our friends in labor to ensure that the final language in the bill addresses the

30 Utility & Transportation Contractor | december| 2018

issue, and will keep you updated as the legislation progresses.

Recreational Marijuana So much attention was given this year to the “blue wave” bringing Democratic control to the House, relatively little mention was made of the growing green tide that brought recreational marijuana laws to three new states. On November 6, voters in Utah, Michigan, and Missouri approved marijuana legalization, and by the looks of it, New Jersey is close behind.

As of this writing, two bills expanding medical marijuana (s10 & s2426) as well as the full legalization bill (s2703) are set to be heard in both houses immediately following the Thanksgiving holiday. While medical marijuana has been legal for several years, the Christie administration severely restricted distribution and allowable use. However, the intervening years have brought much change in the policy space and all signs point to legalization by early-to-mid 2019.

So what does that mean for you? Right now, the answer is uncertain as both medical and recreational bills are expected to be amended before final passage. Your Association has been working diligently to monitor the employer provisions in New Jersey’s legislation, as well as check in with construction associations in states like Colorado and Massachusetts to hear about their experiences and what pitfalls to look out for in the language. The most recent versions of the bills have contained a solid clause protecting employers’ rights to a drug-free workplace, and we will continue to monitor the process as it moves forward.

Please consider supporting the UTCA PAC, Constructors for Good Government UTCA continues to be the leading voice for the infrastructure construction industry in Trenton and Washington DC. Whether it is providing expert testimony before business and legislative groups or positively effecting the legislative process, UTCA stands alone in its record of achievement for our industry. This success is only possible with your support and more importantly, with your support of the industry’s PAC: Constructors for Good Government. Please consider contributing as a robust PAC greatly strengthens our voice. Thank you for your continued support.

every breath you take: A medical review on silicosis By: minh n. huynh, d.o., WORKNET Occupational medicine

S

ilicosis refers to the pulmonary disease that may arise from the inhalation of free crystalline silica. The disease itself has been documented historically as early as the ancient Greek and Egyptian periods, most notably during the construction of the giant pyramids. In modern days, as in ancient times, the disease is a direct result of chronic occupational inhalation exposure to silica dust. Silica is the most abundant mineral on Earth. Workers in the following industries have higher risk of developing silicosis: underground coal mining, surface coal mining, hard rock mining, tunneling, hydraulic fracturing of gas and oil wells, quarrying and stone cutting, foundry work, masonry, blast furnaces, steelworks, rolling in finishing mills, sandblasting, construction including the fabrication and installation of stone countertops, production or use of silica flour, glass manufacturing, cement and concrete production, and ceramic production.

The United States government has classified silica as a human carcinogen since 2000. It is estimated that up to 200,000 miners and 1.7 million non-mining workers in the United States have been exposed to significant levels of silica. From 1987 through 1996, in the United States alone, at least 3,000 deaths were directly attributed to silicosis. However, through improved workplace protections, the current number of silicosis related fatalities has significantly decreased by 93%.

as tuberculosis. The US National Institute for Occupational Safety and Health states that the most important factor in developing silicosis is the concentration of respirable silica in the workplace air. Notably, while the cause of this is yet unknown, African American workers who have been exposed to silica at the same level as their Caucasian counterparts have a seven-fold higher risk of developing silicosis.

How does silica affect the human body?

Chronic silicosis:

Workers are exposed to silica in small dust particles. These small dust particles, known as “respirable� particles, are usually smaller than 10 micrometers . The respirable particles are inhaled into the lungs. Once in the lungs, the silica particles cause an inflammatory reaction resulting in fibrosis of the lungs and eventually decreased ability to breathe. Silica exposure also increases the risk of developing other nonmalignant respiratory diseases such

In many cases, chronic silicosis may present with no symptoms other than an abnormal chest radiograph. Most commonly, workers with chronic silicosis will suffer from a chronic productive cough and shortness of breath on exertion. Many of these workers will present with chronic bronchitis. A history of smoking may complicate the diagnosis. It is very important to document the worker’s exposure history in order to correctly make the diagnosis of chronic silicosis. Tuberculosis may develop as a complication of chronic silicosis thus testing for tuberculosis is required. Pulmonary function testing (PFT) is essential in assessing the lung function of the worker. PFTs may show obstructive or restrictive patterns. There is usually a direct correlation between worsening PFTs and worsening of the radiographic findings. Workers with chronic silicosis will have chest X-rays which show small rounded nodules in the upper lung fields.

These small round nodules will eventually coalesce to become progressive massive fibrosis. To make the clinical diagnosis of chronic silicosis, it is required that the worker have a history of silica exposure, chest imaging that is consistent with silicosis, and no other possible causes. Again there is no treatment for

Classifications of silicosis

Acute silicosis develops after extremely high levels of exposure to respirable silica. Symptoms usually occur within a few weeks to a few years after initial exposure. Symptoms include shortness of breath, cough, weight loss, fatigue with chest wall pain and fevers. Usually the worker will have symptoms before any radiographic imaging signs are present. High-resolution computed tomography (CT) may be useful in finding dependent consolidation and nodular calcification in the lung fields, typical of acute silicosis. Currently there is no treatment for acute silicosis and the prognosis is poor with predicted survival of less than four years. Treatment consists of avoidance of any further silica exposure and supportive care for the worker.

Safety Perspective

Acute silicosis:

Utility & Transportation Contractor | december| 2018 35

chronic silicosis other than avoidance of further silica exposure and symptomatic care. On average, workers with chronic silicosis suffer an average decrease in life expectancy of 11.6 years.

Accelerated silicosis: Accelerated silicosis is similar to chronic silicosis with the exception that symptoms will develop more rapidly, within 10 years following high-level exposure to silica. Workers who develop accelerated silicosis have a higher likelihood of developing progressive massive fibrosis of the lungs. The workers present with shortness of breath on exertion and a chronic cough. The chest radiograph findings are similar to chronic silicosis. The treatment for accelerated silicosis and chronic silicosis are the same.

What next?

Safety Perspective

Occupational Safety and Health Administration (OSHA) has released a standard for General Industry and Maritime (29 CFR 1910.1053) requiring employers to protect all workers from re-

36 Utility & Transportation Contractor | december| 2018

spirable silica exposure above the permissible exposure limit of 50 Âľg per/m3 averaged over an eight hour work day . The standard went into effect on June 23, 2018. All workers who fall into this category will be provided medical exams including chest x-rays, PFTs, screening for tuberculosis and a physical exam every 3 years. Industry has responded with improved dust controls and safer work environments. Workers are provided respirators and are trained in the serious health effects of silica exposure.

OSHA has mandated that by June 23, 2020, all employees who are exposed to silica at or above the action level for 30 or more days a year will have medical surveillance. Silicosis is a preventable occupational disease that has no known cure. Through exposure prevention programs which focus on avoidance and use of personal protective equipment, we can properly protect workers from this devastating disease.

lessons from the kavanaugh hearing By: jonathan landesman, esq., cohen seglias pallas greenhall & furman pc

I

Lesson No. 1 – Who should conduct your workplace investigation?

The Senate Judiciary Committee spent a lot of time debating the issue of whether the FBI should have been called upon to conduct an investigation. After all, FBI agents are supposed to be experts when it comes to interviewing witnesses and gathering facts, and they are presumed to be independent and neutral. Maybe your company has a human resources department that is well equipped to investigate garden variety allegations of workplace misconduct. But are they professional investigators? When allegations are particularly severe or when they involve the highest levels of management in your company, regardless of the depth of your human resources department, you should consider engaging outside counsel or a consulting firm to take the lead on your internal investigation. Don’t be penny-wise and dollar-foolish. If you find yourself unlucky enough to be the defendant in

a sexual harassment trial, even if the plaintiff is able to convince a jury that they were the victim of a hostile work environment, you may still be able to win your case if you can show that you took the complaint seriously and engaged a reputable investigator.

Don't underestimate the importance of documentation.

Lesson No. 2 – There is no such thing as a “confidential” complaint.

As you may remember from her testimony, Dr. Ford sent a confidential letter to Senator Feinstein describing her allegations against Judge Kavanaugh. Senator Feinstein said that she was respecting Dr. Ford’s wishes by keeping the letter secret. You should not repeat that mistake. Whenever an employee comes forward to you or a member of your management team with a complaint of workplace harassment, it is incumbent upon the company to immediately launch a thorough investigation and then to implement corrective action to put an end to any inappropriate conduct. There are no exceptions. The law does not allow you to sit on your hands and do nothing after receiving a complaint merely because the complaining employee requested confidentiality. Of course, it should go without saying that all harassment complaints and investigations should be handled with the utmost discretion and that information should be shared strictly on a need-to-know basis.

Labor Relations

’m a management-side labor and employment lawyer. It’s my job to go to court and defend employers and executives accused of all different types of misconduct, including sexual harassment. Over the last 20 years, I’ve seen it all. Some of my cases involve relatively tame allegations, like telling dirty jokes around the watercooler, and I’ve also been involved with cases involving extremely serious accusations, including indecent exposure, unwanted touching, and sexual assault. I spent a fair amount of time watching the Kavanaugh hearings. Like everyone else I know, I have a strong opinion on whether or not the nomination should have been approved, but I did not write this article to share my personal opinions, there are enough political commentators on cable news shows who did that already. From an employment litigation and human resources perspective, there are several important lessons to be learned.

Lesson No. 3 – If you find yourself in the witness chair, remain level-headed and use plain English. When asked how she was able to remember events which took place 36 years ago, Dr. Ford gave a scientific explanation about encoding within the human brain, repeatedly using technical terms like “hippocampus.” Would Dr. Ford have been a better witness had she simply said that there are some things in life that a person never forgets? Whether I am preparing a witness for deposition or a jury trial, I always insist on avoiding unnecessary jargon. Remember, in order for you to be believable, you first need to be understood. And what about Judge Kavanaugh? Some criticized him for appearing too angry.

When a witness is accused of any type of workplace misconduct, I always want him/her to remain calm and professional on the

Utility & Transportation Contractor | december| 2018 43

witness stand. In harassment cases, conventional wisdom and experience teaches that an overly angry or emotional witness is an unconvincing witness. Thus, in many respects, both Dr. Ford and Judge Kavanaugh’s testimony provided examples of things to avoid on the witness stand.

Labor Relations

Lesson No. 4 – Don’t underestimate the importance of documentation. When faced with a “he said, she said” scenario with two diametrically opposing stories, who are we to believe? Whether my clients are dealing with a harassment allegation, a workplace violence incident, or some other type of employee investigation, I always tell them to document all of the facts in writing as quickly and thoroughly as possible. Depending upon the situation, this may include obtaining written statements from the accuser, the alleged perpetrator, and all of the relevant eye witnesses. In my experience in the courtroom, employment cases are often won or lost on the strength of my client’s contemporaneous documentation.

44 Utility & Transportation Contractor | december| 2018

Regardless of your opinions on Judge Kavanaugh and Dr. Ford and their testimony, we can all agree that implementing appropriate workplace policies on harassment and providing training is only half the battle. What is often just as important when your case goes to court is how quickly and effectively you respond when receiving a complaint of harassment.

About the Author. . . Jonathan Landesman, Esquire is the Co-Chair of the Labor and Employment Group at Cohen, Seglias, Pallas, Greenhall and Furman, P.C. He is also a member of the Firm’s Executive Committee. Jonathan represents general contractors, subcontractors, and other businesses in the construction industry in all areas of labor and employment law, including discrimination litigation, union and fund related matters, non-compete agreements, and day-to-day human resources counseling.

Cover Story

earle celebrates 50 years By: kerri ehrmantraut

Q

uality … Efficiency … Integrity. Walk into the lobby of the Earle executive offices in Wall Township and you immediately know that these three words are the guiding principles that the company lives by. These core values are the same values that the late Walter R. Earle established at the inception of his company and passed to the second generation of Earles. They are proudly and permanently displayed on the wall as an everyday reminder of the company’s commitment to setting the highest industry standards over the last five decades.

What’s also apparent is the four-foot display of the great horned owl with its spanned wings, which was chosen as the insignia of the asphalt company that Walter R. Earle started at 31 years old, with just a pickup truck and a small roller back in 1968.

“My father started his company against all odds. He knew that he may not be the biggest, but he wanted to be one of the best,” said Walter (Rob) Earle II, co-president. Rob is the oldest of the three Earle brothers who today make up the second generation and together lead the family businesses. “At that time, many of the contractors had animals as their logos. The great horned owl was selected because it is small, yet fierce, competitive, and precise.

From the onset, that was the way my father was going to run his business.”

Earle display flags on most equipment when not in use.

Fast-forward 50 years and the great horned owl is represented on everything from the fleet of green and yellow trucks and hard hats to button-down shirts and baseball caps. It remains not only a recognizable symbol of Walter R. Earle’s legacy, but it’s an indication of the way that the second generation of Earles continue to grow and run the business that their father started.

Today, Earle has diversified from a paving company into many aspects of infrastructure work – including heavy civil construction, asphalt manufacturing, environmental, and transportation.

It continues under the leadership of Walter’s three sons, Walter (Rob) II, Thomas (TJ), and Michael.

Although Earle has become an industry leader throughout the state of New Jersey receiving numerous national and state accolades, they always remember where they came from and the core values that have gotten them to where they are today.

Growing up in a family with seven siblings (in addition to Rob, TJ, and Michael, there are four sisters: Jennifer, Allison, Jessica, and Susan), it’s no wonder that family is of the highest importance.

As the saying goes, “Behind every great man is a great woman.”

And for the Earle family, that woman is their mother, Marianne.

Walter Earle at a project meeting at Freehold Raceway.

46 Utility & Transportation Contractor | december| 2018

“My father started with nothing, but he started with my mom,” Rob said genuinely. “From early on, she had the role behind the scenes taking care of seven children and running the household so that our dad could take on the risks associated with starting a new business.”

childhood,” said Michael. “We were taught not only about the value of work ethic, but also about the extreme importance of our company’s image – not just to us, but to our employees and to the public.”

“We learned every aspect of the business from the bottom up.

After college, we each came back to work for the company and worked through the ranks starting as laborers and operators and moved up into positions as foremen, supervisors, and managers.

It put us on the right path and established our credibility,” said TJ.

Cover Story

Walter Earle in front of his new Cat loader.

As the company celebrates 50 years, the pivotal role that their mother plays remains just as important today as it always has from the onset. And they couldn’t be more honored that she was there at their side as the company celebrated its 50th anniversary.

The Earle brothers make up the office of the presidents. They are each an equal partner overseeing separate aspects of the business. Together, and in conjunction with their team leaders, they develop the strategic plan and work collaboratively to establish a roadmap for achieving the company’s goals.

Earle pouring a bridge deck on Parkway Interchange 105 project.

When speaking with Rob, TJ, and Michael, what’s most evident is the sense of pride that they each have for the company. Pride in their people, pride in their family, pride in the fleet of several hundred pieces of heavy trucks and equipment, pride in their reputation, and pride in the future of the company.

Perhaps it was their father’s naval influence that instilled this proud feeling into everything they do. “My father instilled in us many of the qualities that he gained as a Navy serviceman. Qualities of cleanliness, organization, discipline, and respect,” said Rob. Early morning start at Earle's Jackson facility.

“We each went to college, but we always knew that this is where we belonged,” said TJ. “We started here at a young age and we just never considered doing anything else.”

Each of them agrees.

“We, of course, had the option to do something different, but we chose Earle,” added Michael.

The Earle brothers recall working with their father at just nine years old. They worked 40 hours a week during the summer, washing and waxing the trucks and equipment and doing light maintenance alongside their uncle who was the mechanic in the company’s repair shop. “We learned this job hands-on from such an early age and those memories are the cornerstones of my

That impact shows when you see an Earle truck on the road.

Cleanliness continues to be an Earle trademark. “Our trucks are a reflection of our company’s image,” added Michael. “It’s a symbol of pride.”

“It’s part of what makes Earle, Earle,” said Rob. “It’s our commitment to quality, whether it’s building a road, a bridge, a construction site, or keeping our equipment and facilities clean and neat.”

To keep their fleet looking its best, Earle relies on each person that works at the company to do their part to keep their trucks and equipment up to their highest standards. “Our employees fully embrace the importance of our image and obtain tremendous gratification in their role in supporting that image by keeping their workplace and equipment clean,” said TJ. What also happens at the end of each and every workday is something special. Earle employees proudly display the American flag on their equipment. “We decided to start putting the

Utility & Transportation Contractor | december| 2018 47

flags up after the September 11 attacks to show our pride in our nation’s strength and unity,” said TJ. “We received great feedback, and to this day, we continue the tradition. It’s an expression for our deepest gratitude for those who serve our country.”

Cover Story

Along with quality, comes efficiency. To the Earles, efficiency means being innovative. “It’s always looking at a project with a fresh set of eyes and taking advantage of the technology and resources that are available to us today,” explained TJ.

That is one of the reasons why Earle formed an exclusive relationship with Rowan University through the Earle Family Fellowship Program. Through this long-term commitment with Rowan, students are gaining a combination of classroom and real-world training that is essential for students who are seeking construction and engineering degrees. “The partnership with Rowan goes beyond just obtaining an internship,” said Michael who is leading the charge. “It is paving the way for students to succeed and potentially gain employment upon graduation.”

But the core value that could be the most priceless is the act of integrity. “You are only as good as your word” may be one of the most important lessons left by Walter to the second generation.

“Integrity is about always being honest. It’s not about cutting any corners,” said Rob. “It’s a commitment to our customers and our people.”

That commitment to integrity is also the foundation of their relationship with their employees. “We have generations of employee families who work with us. They trust us to employ their children and that responsibility is not something we take lightly. They have our commitment that we will provide a safe, challenging, and rewarding environment that offers an opportunity for them to grow,” said TJ. “The best part about this industry is that there is a tremendous opportunity for people to grow professionally,” he continued.

“We are a merit-based company and promote from within. In fact, more than 80 percent of our management roles, from foreman and up, are filled with individuals who were trained and promoted to those positions.”

Earle makes success possible through its proprietary training programs and apprenticeships in the workplace. Through Earle University, as they call it, employees receive a career map coupled with a tailored training and development plan.

“We are dealing with an industry that doesn’t have enough people graduating into it,” said Michael. “There is a major push nationwide to encourage more people to come into the industry and be trained hands-on.”

Pictured left to right standing are Dale Brzeckowski, TJ Earle, Walter (Rob) Earle, II, Michael Earle, Brian Cooper, Johnnie Wright and Keith Springer.

Pictured left to right sitting are Debbi Nichols, Rudy Rella and Ted Hollen.

Earle’s commitment to its people also extends into the community. In 2011, the Walter R. Earle Foundation was created to give back to local non-profit charities in many of the geographic areas that Earle services. “Working with charities locally allows Earle to have an impact on the issues that are affecting our community. It’s important that Earle gives back because this is where our employees live and where our families are raised,” said Michael.

Rob noted that the Foundation’s first contribution was to the K. Hovnanian Children’s Hospital wing located at Jersey Shore University Medical Center. However, over the last two years, the Foundation has shifted its focus to fight the opioid epidemic by raising hundreds of thousands of dollars for HOPE Sheds Light and The Christopher Center for Mental Health and Wellness at Hackensack Meridian Health Jersey Shore University Medical Center. “Through aggressive education and treatment by these organizations, Earle is helping to save our community’s younger generations, the hardest hit by this epidemic.”

What is next for the business? Will the third generation be up for the challenge? “The next generation doesn’t have to have the last name Earle,” said Rob. “What’s paramount is that the most qualified and skilled people are well-positioned to help the company succeed for another 50 years.”

Earle milling and paving on Route 70 project in Brick, NJ.

48 Utility & Transportation Contractor | december| 2018

It goes without saying that the same core values of quality, efficiency, and integrity along with hard work, people, and pride, will all work together to push Walter R. Earle’s company to the forefront and continue to resonate for the next 50 years.

president signs major water infrastructure legislation By: dan kennedy, director of environmental & utility operations

U

ntil recently, the federal government’s share of funding water infrastructure needs has consistently declined.

According to the Washington, DC-based think tank the Bipartisan Policy Center, State and local governments have picked up the tab, spending $104 billion annually, while federal funding came in at a mere $4 billion.

The need for additional federal funding has been a consistent advocacy position supported and promoted by the UTCA. Over-reliance on state and local funds to resolve federal compliance issues presents an increasing challenge as the affordability of water has become a major concern for low-income households. While water services have been historically underpriced compared to their true cost, water and wastewater rates have steadily risen by over 136 percent since 2000. All funding partners need to step up their game, starting with the federal government.

The bill’s swift passage represents significant progress in the effort to turn the tide of declining federal funding levels. In addition to standard WRDA provisions, the bill reauthorizes the Drinking Water State Revolving Fund (SRF) for the - Dan Kennedy first time since 2003.

The new three-year authorization more than doubles the loan program’s authorized spending to $1.95 billion by the third year.

"WRDA 2018 is a positive sign that the trend of declining federal funding has ended"

WRDA 2018 – Turning the Tide on Historic Declines Big changes to the Water Resources Development Act (WRDA) legislation this fall could lead to greater investment in water infrastructure in New Jersey.

Historically focused on prioritizing (or deprioritizing) Army Corp of Engineers projects nationwide, the typically two-year WRDA bill was merged with a Safe Drinking Water Act bill to create “America’s Water Infrastructure Act of 2018,” (AWIA).

This new bill capitalized on the nation’s attention to drinking water infrastructure and became an outlier example of bipartisanship in DC. AWIA moved through both houses by nearly unanimous votes and was promptly signed by President Trump on October 23rd.

This law is of great importance to the UTCA and has been a key focus of the Clean Water Construction Coalition, chaired by UTCA’s own Bob Briant, Jr. In addition to the Drinking Water SRF funding increased, the law:

The Pipeline

To put this in perspective, when you discount funding for national emergencies (e.g., ARRA and Hurricane Sandy supplemental funding), New Jersey has received between $15 - $18 M per year from the EPA over the past decade. These federal funds, combined with loan repayments from existing borrowers, provide the financial leverage used by NJ’s Infrastructure Bank to fund new projects at low or no interest. The result of this new law is that NJ’s annual grant from the EPA will increase to approximately $19 M this upcoming funding cycle and by Federal Fiscal Year 2021, will increase to nearly $40 M.

• Authorizes the Army Corps of Engineers to undertake 15 major new construction projects that will cost a total of $8.3B, and feasibility studies for 65 new projects specific to Drinking Water SRF programs • Continues Davis Bacon provisions, increases assistance for disadvantaged communities, and requires a compendium of best practices, technology review, source water usage, assessment and elimination of cross-cutting requirements, natural disaster area assistance, monitoring of contaminants, drinking water fountain replacement for schools, innovative water technology grant program, $100M authorization for meeting regulations in under-

Utility & Transportation Contractor | december| 2018 57

served areas • Removes pilot designation from WIFIA making it permanent, providing rules for certain combined projects and repayment, an increase in authorized spending, eliminates fees and streamlines review process • Provides niche funding for combined sewer overflow control grants totaling $450 M ($225M authorized FY19 and FY20) and water sense program funding • Other provisions of interest included - stormwater infrastructure funding task force, Indian reservation drinking water program, technical assistance for treatment works, study of intractable water systems, and water infrastructure and workforce investment.

UTCA stayed in close contact with our Congressional delegation to ensure strong support from New Jersey, and want to thank all of New Jersey’s federal legislators for supporting this bill at every step.

WHAT’S NEXT – CAN NJ DOUBLE THE OUTPUT?

The Pipeline

As we celebrate progress on this long-standing priority, we turn our attention to matters not yet resolved, primarily the reautho-

58 Utility & Transportation Contractor | december| 2018

rization of the Clean Water SRF and the effort to substantially increase (double) the federal funding levels for wastewater and stormwater infrastructure projects.

UTCA estimates that statewide, roughly $1B is invested in upgrades, replacement, or emergency repairs in water infrastructure. In order to truly overcome the challenges with New Jersey’s water infrastructure condition, this rate of investment needs to double. That’s right, double. This funding will have to come from multiple sources but make no mistake, they all need to double for the next 20 years.

WRDA 2018 is no victory flag. Clearly, funding deficits remain and existing funds can in no way match the needs our communities face. The mission is not accomplished. WRDA 2018 is a positive sign that the trend of declining federal funding has ended.

Now, New Jersey must capitalize on this opportunity, accelerate projects of regional/statewide significance, and bring all water infrastructure projects to construction quicker and cheaper.

Funding from the EPA to New Jersey needs to translate to projects under construction as soon as possible. UTCA expects that New Jersey’s elected and appointed leaders will view this as an opportunity and work with us to increase the amount of construction that comes from this increased funding.

Feature Story

eca reigns in 100 years in business "The evolution of a global foundation equipment distributor" By: brian m. fraley, fraley construction marketing

E

quipment Corporation of America (ECA), a prominent distributor of specialty foundation construction equipment, celebrated 100 years as a third-generation family-owned business in March 2018. During that time, it has morphed from a small purveyor of World War I surplus equipment to a large international dealer for the most advanced foundation equipment in the world. The ECA story is one of weathering poor economic conditions, adapting to changing trends, acquiring the best in foundation equipment, treating customers with respect, and giving employees the freedom to excel within a flat organizational structure.

The Early Days ECA was formed in 1918 through the consolidation of three Chicago-based companies that had come together to remanufacture post-World War I surplus equipment. They assembled a fleet of construction, material handling, and industrial equipment under the identity of Equipment Corporation of America.

Len Kern was hired as a secretary in the typing pool at the Pittsburgh, Pa. location in 1921. As he climbed through the ranks, the firm increased its focus on pile driving equipment. By 1959, Len strategically bought out 54 shareholders since being hired and took control of operations, marking the start of ECA’s reign as a family-owned business.

PKF Mark III rented an RTG RM 20 Pile Driving Rig from ECA on the PA Turnpike/I-95 Interchange Project near Philadelphia in 2016 and 2017.

ECA specialized in repairing and refurbishing used equipment and then renting and selling it during Len’s tenure. His son, Al, changed course. Al had studied Civil Engineering at the University of Pittsburgh and applied that knowledge on the construction and maintenance of cellular piers in Florida and Hawaii just after the Korean War. He came to ECA in 1962 and took the helm when Len died in 1965. Under his leadership, ECA built relationships with manufacturers and began distributing new equipment. Al also focused on customer service and expanding the firm’s locations.

Al’s son Roy would take things to a new level, transforming ECA into a global distributor. Roy and his brother Dennis had gotten a taste of the equipment business working as mechanic’s helpers during high school. Although Roy asserted his independence by working as a financial analyst at Chicago’s Container Corporation of America, he returned to ECA in 1986 to sell equipment.

Armed with an MBA, a Bachelor of Science in Mechanical Engineering, hands-on financial experience, and an outgoing personality, he was positioned to take ECA to the next level as CEO in 2000.

Empowering Employees in a Flat Organization While ECA’s success has unfolded under the leadership of the Kern family, Roy defers the credit to his team. “I'm more of a consensus builder than a top down leader,” he said. “They (employees) all have skill sets and talents and it’s important to let that shine, prosper from it, and allow people to do their thing."

The ECA team gathered at Coraopolis, PA headquarters for the 2018 Annual Sales Meeting.

64 Utility & Transportation Contractor | december| 2018

Roy’s father had a similar leadership style. ECA President Ben Dutton experienced this mindset when Al gave him the reins of the Philadelphia branch as a “29-year-old kid.” His counterparts

in Pittsburgh and Washington D.C., Bill Rose and Pete Schell, were afforded the same level of authority.

Ben said: “I think that philosophy still exists. People come here and stay because they know they are respected at all levels, not just at the top management.” ECA’s branch managers to this day help shape personnel, organizational, and marketing decisions.

ECA goes well beyond the standard safety committee meeting to keep its people safe as well. "Safety has always been really important to us,” Roy explained, “but we doubled our efforts in recent years and hired a safety consultant. We put our money where our mouth is.”

The safety consultant conducted an in-depth assessment of ECA’s nine facilities. The results were turned into a comprehensive safety plan and a manual for all employees.

ECA earned a reputation for strategic expansion by opening new locations in the Eastern U.S. and Canada, and partnering with leading manufacturers of foundation equipment around the world. Its lineup reads like a who’s who in global foundation equipment: BAUER Maschinen, KLEMM Bohrtechnik, Gilbert Products, ALLU, BAUER-Pileco, Betek, HPSI, Dawson, MAT, WORD International, Berminghammer, and Prakla.

The firm has amassed nine locations including Pittsburgh, Philadelphia, Washington, D.C., New York/New Jersey, Boston, Mass., Greensboro, N.C., Milwaukee, Wis., Jacksonville, Fla., and Toronto. This diversification has, in part, helped ECA to thrive by allowing the shuttling of equipment between locations to meet changing regional market demands.

ECA expects all employees to stay on top of industry trends.

“One of the things we look for in our employees, especially outside salespeople, is to keep a pulse on the industry and keep management informed,” Kern said. “That's actually written into their job descriptions.”

Feature Story

A common theme among the ECA team is a recognition and appreciation that the foundation construction business allows them to be part of something bigger. Roy ticks off a seemingly never-ending list of projects for which ECA supplied foundation equipment: World Trade Center, Vietnam Memorial, Jefferson Memorial, Hoover Dam, Washington Metro System, the Big Dig, the Toronto subway system, and nearly every stadium east of the Mississippi. He said: “We've been all over the place and it’s very gratifying to look at that finished product and realize that we provided the equipment.”

tury providing and rebuilding World War I surplus equipment such as boilers, steam locomotives, steam hammers, hoists, and derricks. As electric and diesel supplanted steam, ECA shifted its equipment lines to stay current.

ECA’s investment in safety has not gone unnoticed. The firm earned the coveted BAUER Manufacturing Regional Service Center Certification Award in 2017. Among the criteria considered in this rigid audit of its six service facilities was updated safety equipment. In 2016, ECA Canada was recognized by ADSC-IAFD for achieving a zero incidence rate in the Less Than 50,000 Man Hours Worked category.

Evolving into a Global Drilling Equipment Leader "What has helped the company over the last 100 years is our ability to evolve,” said Roy. ECA spent the first part of the cen-

Berkel & Company Contractors, Inc. lined up three BAUER Drilling Rigs for kelly drilling on an office building project in Charlotte, North Carolina in 2015.

ECA’s drilling equipment specialty was born under Al Kern. “I give my dad credit for getting us involved in the drilling industry in the 1980s before it was popular.” Kern said. “He got a head start, especially with small-diameter drilling."

Roy tapped then-Vice President of Sales and Marketing Ben Dutton prior to 2000 to discuss a deeper move into the international drilling market and the two spearheaded a strategy. Ben summarized: “The first thing was to change the vision and the second thing was to really get out and build our identity in the new industry we were going to develop. We then filled it with key products and strong manufacturers.”

ECA's North Carolina office supplied Subsurface Construction with a BAUER BG 20 H Premium Line Drilling Rig and 880-millimeter casing to install a secant pile wall at a war memorial in Richard, Virginia in 2018.

Roy then faced a trial by fire scenario after becoming CEO in 2000. Air pile hammer demand in the Northeast U.S. dried up unexpectedly and ECA was stuck with over 200 pieces of obsolete rental equipment. The trend had shifted rapidly toward

Utility & Transportation Contractor | december| 2018 65

Feature Story

diesel and hydraulic hammers and drilling. ECA took a hit, but managed to step up investment in drilling equipment and sell off its air hammers over time.

Roy and his team recognized that the highest quality foundation equipment was being manufactured in Europe. Today ECA carries foundation equipment from several BAUER Group subsidiaries including KLEMM Bohrtechnik, RTG, BAUER-Pileco, MAT, and Prakla. That relationship started with a $5-million check written by Roy to Professor Thomas Bauer in 2004. It was a fun memory for him and a pivotal moment for ECA as a firm.

ECA’s annual trips to Germany during Oktoberfest each year have become coveted among the firm’s loyal customers. Each year, it funds and organizes the trip, which includes BAUER and KLEMM factory tours, jobsite visits, and an authentic Oktoberfest experience in Munich for up to 20 customers. The ECA team relishes the camaraderie with customers and also giving them a front-row seat to watch its manufacturers in action.

Crawling North into Canada ECA was on the leading edge of the Canadian expansion by acquiring Special Construction Machines of Toronto, Ontario in 1999. The firm immediately sold several large-diameter drilling rigs, but really got traction in 2004 when picking up the BAUER line. ECA retained Special’s 16-year veteran Ray Kemppainen and named him branch manager, a position he holds to this day.

ECA knew Canadian soils were often non-cohesive and required cased holes. “BAUER manufactures a product that revolutionized the use of segmental casing and that's how we picked up the huge market share we have in Eastern Canada,” Roy said. “It was a natural fit to bring this technology to the Canadian market and

Hayward Baker used this new KLEMM KR 801-3FS Drilling Rig to install tiebacks at UMass Amherst in Amherst, Massachusetts in 2016.

the timing was perfect.”

ECA Canada covers a huge territory, distributing some product lines only in Eastern Canada, and others across the entire country. Its most popular products are BAUER BG Drilling Rigs and accessories; BAUER tooling and casings; KLEMM Anchor Drill Rigs and accessories; KLEMM tooling and casings; HSPI Vibratory Pile Drivers; and Dawson Excavator Mounted Vibratory Pile Drivers and Ground Release Shackles. Population surges fueling demand for high-rise condominiums have recently turned Toronto and Quebec into a hotbed of activity for ECA’s BAUER BG Drilling Rigs.

ECA deepened its commitment to the Canadian market in 2012 by building a new facility stocked with its full line of equipment to house 16 employees and more than $4 million in parts. It has supplied many high-profile projects, the most recent of which is the Eglinton Crosstown Light Rail Transit (LRT) project in Midtown Toronto, where Deep Foundations Contractors is running several BAUER and KLEMM Drilling Rigs. Other projects of note have included Toronto-York Spadina Subway Extension, Toronto Subway Expansion, Muskrat Falls Hydroelectric Dam, Burgoyne Bridge Replacement, and Montreal’s Champlain Bridge Replacement.

ECA’s plans to maintain a steadfast commitment to Canada. The only expected change will be to eventually increase its presence in Quebec.

Selling with Integrity and Giving Back to the Industry When asked about the three keys to ECA’s success, Roy has three words: people, integrity, and service. His fondest memories involve good times and friendships with customers and employees.

ECA has an assertive sales team of 26 employees constantly on the move pursuing new business, but they’re known by customers for taking a subtle, helpful approach to selling equipment.

ECA Canada delivered this custom-painted BAUER BG 55 Drilling Rig to Anchor Shoring in 2018 to support foundation work at Canada's soon to be tallest building, The One, in Toronto.

66 Utility & Transportation Contractor | december| 2018

ECA views customers as partners. Ben explained: “Our approach isn't to make money on the sale. It's to help our customers make money.”

Roy added that ECA sells high-end products to a very specific

customer. “We deal with more sophisticated buyers who understand the advantages of quality,” he explained. "You have to believe in the quality that's there, and we've proven that time and again, so most of our sales are repeat business."

“One of our values,” Roy explained, “is to promote and enhance the industry and we work hard at doing that. Our main avenues are providing customer feedback to our manufacturers to keep them at the cutting edge of technology, and also being active members in the trade organizations that affect our industry."

The Future of ECA Kern is not so bold as to make predictions about ECA’s future, but he has a pragmatic understanding of why the firm is rocketing past the 100-year mark.

J.T. Cleary drove H-piles on a loading platform emergency repair project in Brooklyn with a new HPSI MODEL 500 Vibratory Pile Hammer supplied by ECA's New York/New Jersey location in 2017.

sponsible for the machinery being down.”

Staying current with evolving technologies on the market’s most sophisticated foundation equipment is ECA’s biggest challenge.

It requires highly competent employees, close manufacturer relationships, and ongoing training. ECA’s in-house trainers in the areas of drilling, pile driving, and small-diameter drilling, are coached by its manufacturers. They, in turn, conduct training for fellow employees and customers.

ECA has evolved into a large and complex enterprise over the past century, but Roy has not lost sight of its greatest achievements: long-term employees, relationships with customers and manufacturers, and the ability to adapt and survive. He also recognizes the importance of succession planning from the corporate office to the branches. As he thinks back to 1921 when his grandfather worked in ECA’s typing pool, Roy believes Len would be enamored by the quality and quantity of his employees, business savvy, technical advances, and financial position.

Feature Story

This philosophy carries over to how ECA services equipment.

Roy said: "We've always had a policy: we fix equipment first and then we worry about the money. In other words, we focus on getting the customer up and running regardless of who is re-

At a time when many trade associations lament over declining participation, ECA has multiple employees giving back to the industry. You can find them serving in virtually every capacity in associations such as the ADSC-IAFD, Deep Foundations Institute, Pile Driving Contractors Association, and Associated Equipment Distributors.

“I would hope that the company continues to take care of its customers and employees and adapts in any way it needs to,” he said.

“I'd like to believe we would be at the cutting edge of technology and remain very service and customer oriented." Based on the past 100 years of ECA’s history, the odds are high that he will be right.

Utility & Transportation Contractor | december| 2018 67

By: shane riccio, producer, graham company

A

lthough most construction leaders and workers make jobsite safety a top priority, approximately 150,000 construction-related accidents still occur each year, according to the Board of Labor Statistics. That’s more than 400 accidents a day.

A comprehensive risk management strategy is critical to maximize safety and minimize loss during the construction process. Formal safety programs, in-house training programs and on-site observation help to ensure that each construction project meets the highest standards of safety at all times. But we’ll never be able to fully control the external factors – from weather to drunk drivers – that could cause a workplace safety incident. As a result, it’s critical that construction companies also have a plan for responding to a crisis on-site.

Although that plan will be specific to each company, there are a few elements that should always be considered: Have a clear chain of command. Establish the order in which company leadership is notified. For example, you might direct the foreman to call the project manager, and then turn his attention back to employees on-site. The project manager should then connect with company leadership and project ownership, as well as the company’s legal, HR and communications departments in a pre-determined order. This will ensure that key leaders are alerted as soon as possible and can begin working on comprehensive response.

Plan what and how to communicate with employees. Employees across the organization should be notified as clearly and quickly as possible. After an accident affecting colleagues, employees will need information about the incident and an immediate assurance of safety, including whether that job site will be temporarily closed or how the danger on-site will be addressed. They will also need information about when and how work will be interrupted across the company, if at all; and appropriate updates as new details emerge. If the accident results in serious injury or fatality, your company should have a plan for notifying family members in-person, providing medical services, and offering counseling to employees. Above all, ensure that communication after the accident is compassionate, clear and helpful.

Understand what your insurance broker can do to support you in an emergency. Ideally, your insurance broker specializes in the construction industry, and will be intimately familiar with construction risk management. At the Graham Company, for example, we have an emergency hotline for exactly these

NEWS

what to do after a construction accident situations. Day or night, your broker is there to manage the crisis, handle any liability issues and deploy claims management resources that may be required.

Your crisis plan should indicate exactly what your insurance broker will be handling after the job site or auto accident, as they should provide on-site claims management support for claims that require it, attorneys and even investigators if needed. Our clients know that Graham will immediately deploy first response attorneys to the scene of a workplace accident.

Depending on the claim circumstances, we may also dispatch an accident investigation specialist who will work side by side with the attorney, on behalf of our client. With this approach, any negligence by the client would be considered attorney-client privilege. Knowing your insurance broker’s support system in advance will result in a more effective approach to a tragic accident and ultimately a better claim results.

Notify OSHA, and be ready for an investigation. Employers have eight hours to notify OSHA of a work-related fatality, and 24 hours to disclose an employee hospitalization, amputation or loss of an eye. Once OSHA is alerted, someone will come to inspect the job site and likely interview employees on-site, in the office and at other job sites. You may want to have an attorney present for these conversations, and ensure employees are prepared to answer questions.

Plan an independent accident investigation. In most situations, an accident investigation should be conducted by designated team members or a pre-determined outside party. This investigation will work to identify exactly what happened and why, providing critical information to prevent an incident in the future. These details are often required for legal and insurance purposes.

Circulate your news media protocol. Significant accidents will draw the attention of the news media, and it’s important that all media interaction be guided by your communications team to ensure the information provided is accurate and consistent. If it’s part of your policy, employees should be reminded to forward all media inquiries to the director of communications or an on-site designated spokesperson.

Confusion can make a “worst case scenario” even worse, compounding the effects of the initial crisis. With a clear strategy in place, construction companies can be confident in both their daily safety protocols and their responsibilities following an accident that hopefully never happens.

Utility & Transportation Contractor | december| 2018 73

By: paul anovick, business owner, entrepreneur & adjunct professor at njit

M

y grandfather was a carpenter and owned a woodshop.

As a young boy, I spent a great deal of my time with him in there. When customers came in we would take a break from our work to discuss a project for them. My grandfather was a master storyteller who would entertain and engage customers with stories of his Kentucky home. Through storytelling he was able to learn about his customer’s needs–which were often different than what they originally described. Over the years I realized purposeful storytelling wasn’t show business—it was good business.

Before man learned to write, he had to rely on his memory to learn anything. This required being a good listener. A good storyteller was always respected as they passed on ideas, values and information that aided survival. We are hardwired for stories.

Stories captivate and connect. They allow you to cut through the constant chatter taking place on social media platforms. Stories create stickiness as they forge an emotional bond with your audience. People remember stories, not facts and figures. In the workplace stories can be used to make a persuasive point and inspire a team, or employee, to persevere and overcome an obstacle.

As a leader, coach and keynote speaker I’ve seen how audiences connect to stories on different levels. I’m constantly amazed how people will recount stories from meetings and presentations that I made some 15 or 20 years ago. Perhaps an audience member shared a similar experience? Stories allow listeners to derive what they want from the story, leaving your words open to their interpretation.

The challenge is to make your story relevant to a takeaway or key point you want to make. The power and impact of a good story is timeless.

Don’t fool yourself into thinking you’re not a natural storyteller.

It is not a skill one is born with, but one that can be developed.

Four tips on how to master the art of storytelling: • Have a point. A good storyteller knows how to convey a message in their story and draw the audience into the narrative. And the story has to have a beginning, middle and end. The conclusion should succinctly convey the message or moral (think Aesop’s Fables) for why you shared the story. Keep in simple.

NEWS

the power of storytelling for effective communication

• Share meaningful events that happened in your life. If it’s important to you, and you are able to relate the event to your audience, it will be appreciated. The best stories are about real-world challenges you encountered and overcame.

• It’s not about you. You may be the central character, but the focus shouldn’t be on you, but sharing an experience where you learned or grew. The audience needs to feel an epiphany for themselves.

• Take note of where you fail and where you connect. You may be surprised to see which stories strike a chord with people. And which get laughs. Learning what works best for you is an ongoing process.

Do all this and you will not only be an effective communicator, aka storyteller, but your people will see you as a more effective leader. One of the reasons storytelling works so well is it aligns with the way our brains analyze and categorize information.

So, the people who work for you will retain what you share and hopefully implement the message as well.

Great leaders were often great storytellers. In Doris Kearns Goodwin’s book, ‘Leadership in Turbulent Times’ she writes how Abraham Lincoln early in his life developed his ability to effectively communicate using stories. “He set himself apart by the candid way in which he approached every question and by his habit of illustrating his arguments with stories based on observations ‘drawn from all classes of society’ between men and women in their daily lives. At times, his language was awkward, as were his gestures, but few who heard him speak ever forgot either the argument of the story, the story itself, or the author.”

Now tell me a story.

About the Author. . .With over 35 years of business management experience in Sales and Operations, Paul has a wealth of practical knowledge along with a passion for business success. Paul's been directly involved with both startups and turn-arounds. As an entrepreneur, he has launched three successful companies. Paul's expertise includes executive coaching, leadership, strategic planning, streamlining and improving operational processes. His experience has enabled him to be known for the ability to adapt, innovate and effectively communicate with diverse audiences. Paul works with individuals through executive coaching, as well as, companies and organizations. The results have led to an impressive client list over the past ten years of business. In the construction industry Paul has worked directly with companies such as J. Fletcher Creamer & Son, Harm’s Construction, HC Constructors, Crisdel Group, Aspen Landscaping, Atlantic InfraTrac and GEOD/Layout, to name a few. Paul has facilitated for NJIT in Newark, NJ in conducting Leadership Programs for the University. Visit Paul on Linkedin at: https://www.linkedin.com/in/paulanovick/

Utility & Transportation Contractor | december| 2018 81

Dianne BC PA1_Layout 1 1/4/16 1:10 PM Page 2

A M E M BE R O F T H E P H O E N I X G R O U P O F C O M PA N I E S

Strohmenger As a Dianne proud member of the C.W.A Local 14156, President American Plus Printers is a WBE/SBE certified, diannes@amplusprint.com WBE/SBE employee owned, full serviceCertified union print company offering Office 215.698.6628 • Cell 732.779.0276 straightforward, customer-oriented service in the highly 11601 Caroline Road • Philadelphia • PA 19154 competitive market of commercial printing.

American Plus is committed to the highest union standards of integrity, quality, and service to the community.

NEW JERSEY

2604 Atlantic Ave., Wall, New Jersey 07719 • Tel: 732-528-2170

PENNSYLVANIA

11601 Caroline road, Philadelphia, PA 19154 • Tel: 215-698-6628 E-Mail: americanplus@mac.com • www.amplusprinters.com WBE/SBE CERTIFIED

By: nancy damato, rda benefit services

T

he cost of healthcare continues to be on the rise. You want to offer quality healthcare solutions to your employees while keeping costs as low as possible. A recent study has shown that executives ranked employee health and productivity as top corporate concerns. As a result, there has been a consistent rise in the popularity of consumer-directed, cost-conscious employee health plans.

benefits that their plan offers, will help employees use all the benefits available to them.

In addition, there are other initiatives that an employer can take to manage the cost of healthcare:

5. Managing the cost of prescriptions can also eliminate unnecessary expenses. Not only getting the right medications but knowing where and how to get them at the most reasonable costs is critical to a person’s care. In response to opioid abuse, there is now increased access to alternative therapies, such as acupuncture, physical therapy and chiropractic care.

1. Establishing a workplace wellness program. Studies have shown that these programs have a significant positive impact on reducing health risks and costs, while improving employee productivity and morale. By creating and promoting wellness programs, in addition to using the wellness benefits through their healthcare plan, an employer, as well as its employees, will reap the rewards of these programs for many years to come.

2. Offering a telemedicine solution that can save employees, and their families, time and money by providing an extremely affordable healthcare option they can use anytime, anywhere. It gives employees the ability to speak to a doctor over the phone, get diagnosed and have the doctor call a prescription into their pharmacy. They have access to a US board-certified physician --24/7/365. This is a very effective way to redirect Emergency Room and Urgent Care over-utilization to a more affordable option.

3. Continuous employee education throughout the year is so important, not just during open enrollment when the company’s plans may have changed, and new choices need to be made. Reminding employees to use their preventive care benefits and get their annual flu shot as well as educating them on the additional

NEWS

top corporate concerns: employee healthcare & productivity

4. Many health plans can also direct those employees with serious medical conditions like diabetes, to Centers of Excellence to get the appropriate care they need at the most reasonable costs.

This eliminates unnecessary doctor visits and delays in getting the quality care and treatment the individual needs.

6. Offering tax-advantaged solutions, such as H.S.A.s, HRAs and FSAs to employees, whether the core health plan is a traditional or high deductible plan. Out of pocket expenses can then be covered through a tax-advantaged account which benefits both the employer and employee with some tax savings.

7. Offering dental and vision, whether company paid or voluntary, since it has been proven that serious diseases can be uncovered through annual dental and vision exams.

8. Include voluntary benefits, including accident, cancer, disability insurance as well as ID theft protection to round out a comprehensive benefits program.

9. Are some of your employees aged 65 or older? Do they know what their Health plan options are? Are you able to educate them on their choices?

You may also be wondering how to manage all these comprehensive benefits, since you may have limited staff and resources. A wide range of Technology Solutions are now available to help handle many administrative Human Resources and Payroll functions, including Benefits Administration. These systems are designed to be an efficient solution to consolidate information in one place, save time and money, and eliminate many errors, as well. They eliminate the need for paper and can also assist with the many aspects of Compliance that is an integral part of today’s world.

For more information on implementing comprehensive employee benefits solutions and technology solutions, please contact Nancy Damato, RDA Benefit Services, LLC, toll-free at 855-6930772 or ndamato@rdabenefits.com.

Utility & Transportation Contractor | december| 2018 87

NEWS

safety committee A year in review By: dan neville, director of safety & professional development

S

afety is no accident, and that’s why UTCA is committed to providing top-notch training and resources to our members and their employees. More than just protective gear and OSHA compliance; safety is an active culture maintained through daily practice and routine. While construction can be inherently dangerous work, a proper safety program and a welltrained crew can all but eliminate jobsite accidents.

The UTCA Safety Committee is committed to supporting your firm’s efforts to improve by offering discounted safety training seminars almost every Saturday throughout the winter. Last year over 400 students attended classes, held in the Association office early January through March. The Committee would like to thank all of our 2018 participants and look forward to meeting the new class of 2019.

In late February, the Annual Construction Safety Seminar was a great success and featured national speaker Eric Giguere, who presented his motivating personal story to more than 130 attendees. Later in the program, eleven contractor firms were presented with Safety Awards for outstanding safety performance. Winning firms’ OSHA 300 numbers and safety records must fall far below the national average, and of course, their fellow applicants.

Think your firm is safer than the rest? Keep your eyes peeled, because the application for 2019 Safety Awards will be emailed in early January.

In addition to education, in 2018 the Safety Committee was heavily involved in the informal stakeholder meetings on regulations for the “Underground Facilities: One Call Damage Prevention System.” The Board of Public Utilities (BPU) invited the Association to participate in an informal process to amend the regulations in an attempt to develop industry consensus in advance of the formal rulemaking process to come later in 2019.

At BPU meetings throughout the year Director of Safety, Dan Neville, has fought for contractors’ interests while vocally opposing measures that were harmful to the excavating community.

The formal rule process will begin later in 2019 and Association staff and Safety Committee members will keep you updated as we continue to advance the interests of our industry.

2019 WINTER CLASS SCHEDULE January 12

Trenching and Excavation Seminar

January 19

Confined Space Awareness Seminar

January 26

ATSSA Flagging Seminar

February 3 OSHA’s Crane Regulations, Signal Person and Rigging Training February 9

Trenching and Excavation Seminar

February 16

Confined Space Awareness Seminar

February 23

The Annual Safety Conference & Awards

Make sure to send your crew to see next year’s speaker, Tom Goeltz. Tom had been a safety professional and advocate his whole life, but nothing could have prepared him for the day he lost his daughter and unborn grandchild. Tom turned his personal tragedy into a teaching tool for audiences across the country, making it his life’s mission to raise awareness on the dangers of distracted driving. This seminar is a can’t miss for everyone in your company. Register online today! www.utcanj.org/utca-events

2017 Safety Award Winners

Carbro Constructors Corp. - Michael Caruso, Creamer Environmental, Inc. Jason Ruchalski, J. Fletcher Creamer & Son, Inc.- John Papandrea, Jingoli Construction - Bobby McGee, Clyde N. Lattimer & Son Construction Co., - Jim McGoarty, McPhee Electric - Bob Sutter, The Napp-Grecco Company Leo Martin, Orchard Holdings, LLC - Fred Kurfehs, Petillo, Inc. Gregg Johanesson, Tilcon New York, Inc. - Jim Best, Trevcon Construction Co., Inc. - Conrad Reynolds

90 Utility & Transportation Contractor | december| 2018

Feature Story

rebuilding the sea bright & monmouth beach sea walls

tackling the Atlantic Ocean & Mother nature By: fred wussow, j. fletcher creamer & Son

W

hen Hurricane Sandy came ashore in Brigantine, New Jersey on the evening of October 29, 2012 with winds in excess of 80 mph and a storm surge of nearly 14 feet, it devastated New Jersey shore towns and infrastructure.

It was the 4th costliest storm in United States history inflicting 70 billion dollars in damages. The towns of Sea Bright and Monmouth Beach were already partially protected by existing sea walls. However, the high winds and storm surge destroyed most of the businesses in these towns flooding their restaurants and stores, leaving watermarks on the walls 6 feet above the floor.

In October of 2017 the New Jersey Department of Environmental Protection (NJDEP) awarded J. Fletcher Creamer & Son, Inc. (Creamer) a contract to repair the existing--and build over 5,500 linear feet of new--seawalls over a 5 mile stretch of the New Jersey Shore.

To accomplish this, Creamer battled the Atlantic Ocean and the unrelenting storms and tides. Crews began construction of the sea wall by excavating approximately 22 feet below the existing beach grades, and 12 feet below mean high water. To work in the dry, a series of deep wells were installed approximately 30 feet on center penetrating 5 feet below our bottom of excavation.

Sea wall complete with ramps to access both sides of the sea wall.

Once the deep wells lowered the water table, crews excavated approximately 224,000 cubic yards of sand, building berms 20 feet above the existing beach grades. Filter fabric was installed, and the rock was placed at the bottom and sloped upwards to a height of 10 feet above the existing beach grades. This rock placement was done with hydraulic rotating grapples mounted on large hydraulic excavators. In total over 151,000 tons of stone was placed on 128,000 sf of filter fabric. Construction was shut own during the summer season.

Creamer then installed a 12 foot wide walkway with aluminum hand rails on top to allow for beach goers to stroll along the top of the wall to restaurants and shops along the ocean. In addition to the walkways, two concrete vehicular crossovers each 16 feet wide and 300 feet long were installed. This would allow for emergency vehicles to access the beach area.

A total of 374 timber piles were installed to support stair crossovers, walkways, and handicap ramps from existing parking lots to the beach. These walkways were supported by 3”x10” stringers sitting on 4”x14” timber headers that were bolted to the piles.

When construction was done, Creamer brought in a large vibrating screen and stacker to screen 110,000 cubic yards of beach sand to minus ¾”. This insured the beach goers a clean sandy beach to enjoy the summer season.

The project is on schedule for completion in January 2019, on time and in a safe manner.

Construction under way

92 Utility & Transportation Contractor | december| 2018