Utility & Transportation Contractor December 2019

Utility & Transportation

contracTOR

Creamer Environmental Completes 25 Years In Construction

december 2019

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de i s n

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ple om C ess ncy ge Busin A H In C& ears Y 50

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president’s message

From the desk of: dave smith

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inter is already upon us — where did this year go?

The 2019 Convention was a huge success, and once again, the UTCA staff hit it out of the park. Participation was at an all time high, and the Casino Night theme was a nice change and very well received. The Convention in 2020 will bring additional changes in format, and I suspect they will not disappoint.

As we watch the sun set on 2019, we look back at mixed results. The weather was extreme, the funding was lumpy, and the mix of work has been reasonably unpredictable. So what are we doing about it?

• The I-bank now has the approval to use TIFIA funds, increasing the transportation arm of the funds from $80 million to $160 million annually in less than a year’s time.

• The Water and Sewer arm is expecting a positive result with the addition of $135 million in new funds from EPA’s WIFIA program, taking the annual total to just under $700 million.

• NJ Transit is expected to let projects this year including the Raritan Bridge and several other projects that should total approximately $800 million using federal funds.

• NJDOT is on track to let $960 million, and we are anxiously awaiting the next budget.

One of the most exciting things to report is an update on a project that we have been working on for years, the federal Toll Credit Bank. NJ has in excess of five billion in toll credits above that which is used for our State TTF match. We have worked closely with legislators and have a bill in front of the US Senate to allow states in need of matching funds to purchase those credits from states like NJ who have excess toll credits. The potential influx of funding to our infrastructure is substantial.

These are all positive signs, yet much more is needed. The Turnpike and Garden State Parkway need additional funds for ongoing maintenance and improvements. The motoring

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public has benefited greatly from their last round of projects, and we need to capitalize on that momentum.

Regardless of your political views, this is a country that is dangerously divided. Life woud be better if we could figure out how to work together and find some common ground rather than taking the nuclear option from right out of the gate. It seems as though opposing parties are fighting over even that which they agree on philosophically. President Trump’s grand plan for infrastructure spending seems to get further away with every new controversy. Lame Duck session is dangerously starting to look more like a wounded bear. This year we have seen an onslaught of legislation introduced, and the UTCA team is working feverishly to control what we can and manage that which we cannot.

Work Zone Safety month is not until April; however, every month should be Work Zone Safety month. We as an industry all agree that there is not a single thing more important than everyone going home safely to their family. More needs to be done to personalize the issue and force people to slow down. I encourage you to look for ways to participate in the UTCA safety program and spread the word through the community through your employees. Our employees are the strongest outreach we have.

What can you do? How can you help your industry? Get involved! There are countless opportunities to get involved with the UTCA from the Young Professionals to serving on a committee. We need your help to shape the UTCA of the future. Our strength is in knowledge and numbers, and our leadership is made up of people who live this industry. We are looking for you! Join us!

Best regards,

Dave Smith

Cover 56

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CONTENTS

Cover story 56 Creamer environmental

celebrates 25 years in construction

DEPARTMENTS

FEATURES

2 7 13 19 27 43 49 73

64 C & H Agency completes 50 years

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

NEWS 33 a message from u.s. senator cory booker 37 nj transit's new capital plan 83 the future of employee benefits 89 the learning organization 95 the challenges of hiring heavy civil experts 103 why is there a need for surety bonds 109 2020 safety and education seminars Published Bimonthly During 2019

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: Dan Kennedy, Zoe Baldwin, Dan Neville Advertising Manager: Helene Nasdeo Production/Graphics: Helene Nasdeo Circulation: Helene Nasdeo Printed By: American Plus Printers Affiliations: ARTBA, Clean Water Construction Coalition, Water Infrastructure Network 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| 2019 3

By: bill ruckert, provident bank

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ompanies routinely prepare a wide range of financial information for both internal and external use. While income statements and balance sheets are more commonly known, the Work In Progress or “WIP” report, in the words of Roger Miller, is ‘King of the Road.’ Accurate preparation of a WIP requires input from workers in the field, finance and senior management to ensure progress of work is correctly tracked, direct expenses are accounted for and problems, real or perceived, are recognized. Income statements and balance sheets provide historical perspective, but WIPs give insight into expected future performance.

The relevancy of WIP reports is readily recognized by management; however, it is equally important for your banker and surety. WIP’s report the number of jobs along with expected sales volume, providing a snapshot of a company’s anticipated revenue. Work completed and to be completed, demonstrates a contractor’s ability to perform as well as manage on-going jobs.

Projected gross profit versus actual earned is very telling also, as failure to meet expected levels can be an indicator of less than anticipated earnings, or, losses.

The Anticipated Gross Profit Margin column on a WIP provides even more fundamental information when further scrutinized.

If the figure is below the company’s historic average it can suggest a company is in need of work and lowered its pricing in order to gain a job. Conversely, if it is above the historic average, management may be overly optimistic about its estimate of a job’s profitability, or, better yet, outperforming projections. As importantly and not to be overlooked, is that every job has its own expense nuances including mobilization, timing and seasonality, which will impact the actual gross profit margin; business partners should not overreact to it.

The timely completion and submission of a WIP report is imperative for both management and the bank to maintain adequate job oversight. Comparative analysis from prior reports is critically important for bankers and sureties alike, as it reflects individual job progress. Understanding how work is being completed, billed and paid for, will also be reflected on the balance sheet in the form of costs in excess of billings and billings in excess of costs, although other dynamics will impact these categories as well.

trations as well as their paying habits. Companies that act aggressively stretching for work, will show that in their WIP report, as mentioned above, but also with the size of a contract.

An unusually large job while worthy of congratulations upon being awarded, can bring unforeseen risks inherent with biting off more than a company can chew. Further a large job that exceeds a contractor’s norm should lead to a conversation with the bank and surety. A retainage column should be included in WIP as its unusual growth could be a red flag. Lack of job progress will also be readily seen under a comparative analysis. Lastly, a companies’ capacity to bid for more work, or not, will be readily apparent upon reviewing its WIP.

Financial overview

work-in-process (wip); 'king of the road'

WIP reports should be done at least quarterly and more frequently for larger contractors and/or jobs. The information should be shared with all interested parties both inside and outside the organization. The information becomes particularly relevant when operating expenses are deducted from gross profit to see if the company’s allocated overhead is being absorbed and the job is performing profitably.

Active discussion should be held with your banker and surety to provide routine WIP updates and the status of jobs. Your banker should be well prepared when entering these discussions to ensure an understanding of the report provided, as well as an overall grasp of the company’s workload. Further, these discussions should include projected cash flow needs and/or surpluses to make sure adequate capital is available to complete work, or, excess funds can be deployed in the most economic fashion for the company.

On behalf of Provident Bank I would like to congratulate Fletch Creamer and his team at Creamer Environmental on celebrating 25 years in business, and Rob Culnen and the entire C&H organization on celebrating 50 years in business.

In addition to its impact on a balance sheet, WIP reports provide other meaningful information. They reflect customer concen-

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

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hen a contractor proves that an owner has breached its contract, it should be relatively easy for the contractor to prove certain traditional compensatory damages--damages that put the contractor in the same position it would have been in if the breach had not occurred. If the breach resulted in unjustified termination, the contractor may be entitled to the profit it would have made if it had completed the job. If the breach occurred but the contractor performed the project through at least substantial completion, the contractor may be entitled to seek compensation for performing changed work and, depending on the terms of the contract and other circumstances, for delay damages.

Delay damages may include the increased costs of labor and materials; idle labor and equipment; job site overhead; and home office overhead. Although these types of costs are less certain, there is considerable case law that will support such claims under the right contract and job history.

But other types of damages which contractors may believe they are entitled to as a matter of equity are less certain and harder to prove. Damages for inefficient work is one of the most difficult areas of proof, but occasionally contractors have been successful in obtaining recovery for this rather speculative item of damage.

You may have to find out-of-state support for the legal analysis you need if you are seeking damages for inefficiency. While state courts are not bound by the decision of other states or of courts applying federal law, citing case law from other jurisdictions can at least provide insights that may persuade the court or arbitrator who is deciding your matter.

In Peter Kiewit & Sons Co. v. Summit Constr. Co., 442 F.2d 242 (8th Cir. 1969), the prime contractor required the subcontractor to change its backfill procedure at a missile site. By refusing to permit the subcontractor to backfill underground excavations in a two-phased operation unimpeded by pipe in hole as agreed to in special provisions of the subcontract and, instead, requiring backfilling to be done in three phases after pipe had been installed, thereby increasing the original estimated cost of $600,000 to approximately $2 million, the court held that the prime contractor went so beyond the scope of the subcontract, including the “changes” provision, as to breach the contract. The subcontractor was entitled to damages based on the inefficiency caused by the prime’s directive.

Legal Dig

obstacles to proving non-routine damages in construction disputes

Other courts have recognized compensation for “cumulative impact” or “cardinal change.” In Jackson Constr. Co. v. United States, 62 Fed. Cl. 84, 104 (2004) the U.S. Court of Claims allowed for damages based on “the theory that individual compensable changes to a contract, taken as a whole, can have such a disruptive effect on the contractor’s performance that the contractor has a compensable claim for costs in addition to the amounts of its individual change orders.”

Similarly, in Bell BCI Co. v. United States, 570 F.3d 1337, 1340 (Fed. Cir. 2009) the U.S. Court of Appeals for the Federal Circuit noted that a delay claim captures the time and cost of not being able to work, while a disruption claim captures the cost of working less efficiently than planned.

That terminology has occasionally been adopted by courts interpreting New Jersey construction law. In AMEC Civil, LLC v.

DMJM Harris, Inc., 2009 WL 1883985 (D.N.J. June 30, 2009), the court observed that “the cumulative impact theory allows the plaintiff to recover all of its losses from a party with whom it is in privity of contract, if it can show that the disruption resulted solely from the defendant’s actions.”

Contractors should bear in mind, however, that these theories require jumping over high hurdles before a court will entertain them. One of the most thorough analyses of non-routine contractor claims for damages was delivered in an opinion in excess of forty pages in PCL Constr. Services, Inc. v. United States, 47 Fed. Cl. 745 (2000). The contractor filed claims arising from the construction of a visitor center and parking structure at Hoover Dam. The court rested its denial of damages, in part, on a failure of proofs, concluding that “the government cannot be held liable

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Legal Dig

for breach of contract, or any other related or unrelated cause of action that relies upon ‘severe defects’ in the contract drawings, cardinal changes to the contract, or government hindrance of performance, unless and until [the contractor] proves that the alleged defects, changes, or hindrance had an impeding effect upon [the contractor’s] construction operation.” The court found that the contractor failed to offer such proof at trial. Id. at 801.

If the court determines that the project was essentially the same as the one that the contractor should have reasonably expected it was contracted to build, it is extremely unlikely that it will be willing to find that a cardinal change has occurred, and will not award the contractor damages on that basis.

The court specifically opined that it is well-settled that a cardinal change “occurs when the government effects an alteration in the work so drastic that it effectively requires the contractor to perform duties materially different from those originally bargained for,” citing AT&T Communications, Inc. v. WilTel, Inc., 1 F.3d 1202, 2015 (Fed.Cir. 1993). The fact that there are a significant number of change orders – in the PCL Construction case, there were 356 approved changes – does not, in and of itself, constitute a cardinal change. Significant differences in the contract price will not necessarily persuade a court that there was a cardinal change. In S.J. Groves & Sons, Co v. United States, 228 Ct.Cl. 598, 602 (1981), the court found that a $6 million change to a $2 million contract was not a cardinal change.

If you have experienced delay due to significant changes to the contract scope, inefficiencies, or directives altering your means and methods, and the increased costs were not captured by change orders, you should discuss with your attorney whether it is worth it to explore making a claim for cumulative impact or cardinal change. But be prepared for your attorney – or the court – to view such a claim with a good deal of skepticism.

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TAKEAWAY

The information contained herein is for information purposes only as a service to UTCA members and the public and, is not legal advice or a substitute for legal counsel, nor does it constitute advertising or a solicitation.

open book management - what is it & how can it help my company?

By: Salvatore schibell, lawson, rescinio, schibell & associates

Open-book management is a way of running a company that engages employees in making money. People learn to understand the economics of the business. They track and forecast key numbers. They figure out how to move those numbers in the right direction and they share in the rewards of better performance.

Open-book management has been called the most important management trend in the country.

Definitions of open-book management vary, but they generally include the following components: Sharing the income statement and balance sheet with most employees; Sharing other data with employees (such as productivity and plant utilization/quality data); Encouraging employees to use the information in their daily work; Training employees to understand financial numbers; and

can be sold for top dollar when and if that time comes.

Radical Thinking Originally the idea of open-book management—that employees should actively concern themselves with a company’s business objectives—has a short pedigree. Frederick W. Taylor, the father of scientific management, would have thought it idiotic.

So would generations of traditionally minded executives, middle managers, union leaders, and frontline workers. Recently, though, the idea has gained currency. It underlies some innovative compensation systems such as gain sharing and employee stock-ownership plans (or stock option plans). It is implicit in so-called empowerment or employee-involvement programs, yet such plans and programs are at best only half measures. Owning a few shares of stock does not magically enable employees to think and act like owners; they may want the company to succeed but have no idea how to help it do so. Although teams of workers are often empowered to manage their own work areas, nothing in conventional employee-involvement programs gives those teams a reason to care how the business unit as a whole is doing.

The Seven Sources of Strength and Competitive Advantage It Develops:

Sharing the financial results through a gain sharing program.

More engaged employees;

Research on Open-Book Companies—It Really Does Work, Builds Profits and Employee Loyalty

If employees are to act with the organization’s business objectives in mind, senior managers must see that three conditions are met.

Taken together, these requirements are the building blocks of an open-book system.

Why should anyone bother with a whole new approach? Why not just keep on keeping on, managing your business the same way you always have? One reason is simple; open-book management nearly always improves near-term financial results. Empirical data reflects, companies register as much as a 30% increase in productivity and profitability in the first year alone, and in addition employee ownership companies were nearly twice the size as expected in a 30-year period when they implement the approach properly. In addition, non-employee ownership companies saw an increase in sales of 1.66% per year and employment of 1.27% per year relative to what would have been expected without open-book management. The real business case for open-book management is that it makes a company stronger over the long haul. It improves the lives of employees, building loyalty and commitment. It helps create a business that can thrive year after year in today’s mercurial economy—and that

Accounting Corner

O

riginally my topic for this article was to be a Federal tax update but upon further consideration due to the fact that Congress has virtually accomplished very little in this area I decided to talk about a subject that will bring great financial benefit to the companies that utilize open-book management properly.

First, information previously shared only among those in charge must be seen—and understood—by everyone in the organization. That means all relevant information—not just sales and shipments, for example, but financial goals, budgets, income statements, and forecasts (Hence the moniker “open book”). Financial information is a business’s ultimate measuring stick; it explains the reasons for managerial actions and allows employees to gauge the real success of their own actions. How many companies have, say, reengineered a process only to reengineer it again when the hoped-for financial benefits didn’t materialize?

If employees aren’t privy to the same data as management, they’ll decide that management doesn’t know what it wants. If they do have the same data, they’ll understand as well as management why the initial reengineering didn’t work.

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Accounting Corner

Second, managers must hold employees responsible and accountable not just for scheduling their work or hitting quality targets but for making their unit’s budget or profit goals. Executives and senior managers—but, in most companies, few lower-level employees—know that a business unit’s performance reflects many elements, including sales, cost of goods, labor productivity, and budget variances. Managers responsible for those numbers learn to identify and watch key drivers, to forecast and reforecast, to analyze the budget for possible trade-offs and fallbacks, and to figure out ways they can get additional or better work done in the same amount of time. In open-book companies, all employees learn those skills.

the same situation: “We’re terribly sorry, ma’am. Let’s talk about how we can make it right.” At open-book companies, employees learn to think like owners—which means they act like owners toward customers.

Third, in addition to paying employees for their time, the compensation system must reward them for the success of the business. That usually involves creating a sizable bonus plan. Unlike many variable-compensation systems, open-book bonuses are always tied to some easily understood measure (or measures) of business-unit performance, and progress toward the goal is publicly tracked. The system is thus wholly transparent: people see and understand the numbers that determine success, learn the part they play in making those numbers, and know in advance how they will be rewarded if the unit achieves its goals.

Advertising yourself as an open-book company conveys a powerful message. You have nothing to hide. You can be trusted. You are providing your employees with a great place to work, and you are expecting them to think and act like owners. Who wouldn’t want to do business with a company like that? More and more open-book companies are teaching the approach to customers and suppliers through webinars and other methods. One software company found that advertising itself as an open-book organization led to several new hires in the highly competitive market for programmers. You might say that open-book management is the ultimate competitive edge.

Companies can assemble the building blocks of open-book management in a variety of ways, as we’ll see when we examine the implementation process. However they are arranged, though, open-book precepts change fundamental assumptions about how an organization works. In open-book companies, managers and employees are expected to contribute to the business’s profitability by making (or bettering) their unit’s numbers. Managers may still issue instructions—open-book management doesn’t abolish hierarchies—but those instructions derive their authority from a logic that’s understandable to all (“We’re going to have to redesign that process again because, look here, you can see that our costs didn’t drop the way we hoped they would”).

About 30% of US workers say they engaged in their work. An open-book company can double or even triple that figure, because employees see the effects of their actions on the business’s performance and know they will benefit when results improve.

“I don’t have employees in my plant anymore,” says Roger Grommet, co-owner of Boardman Inc., a specialty manufacturer based in Oklahoma, “I have entrepreneurs who are looking to find ways to make more money.”

Lower supervisory costs; People who view their work as “just a job” need supervision. Supervisors make sure that these hired hands work hard and don’t screw things up. People who view their work as helping to build a business—a business in which they share—don’t need that kind of supervision. Coaching, sure. Someone constantly peering over their shoulder, not so much. The less a company spends on supervisors, the better its bottom line.

Better front-line relations with customers; A hired hand’s typical response to an irate customer is usually something like this: “Sorry, ma’am, I’m just following policy,” or “Sorry, that’s not my job.” A business owner’s typical response in

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Faster, more agile response to changing customer needs; The difference isn’t relevant only to customer problems. Openbook employees also keep an eye out for longer-term changes in what customers want and expect from their interactions with a company.

A built-in competitive advantage;

More fun; Open-book management companies make work fun in a way that it can never be in an ordinary organization. Look at the typical open-book weekly meeting with its highly participatory review of sales, cost initiatives, or anything else that affects the company’s key numbers. Employees “cheer, laugh, clap, sometimes groan, and nearly always have a good time.” That’s because business itself is made fun when the employee is made a part of the decision-making process and is reaping the benefits in the form of goal achieving financial benefits.

Higher company valuation; An open-book company requires robust, transparent financial systems. It asks everyone in the organization to learn certain numbers that affect financial results and how they can make these numbers move in the right direction. Many such companies draw on practical techniques to ensure continuous improvement. These are all factors that affect a company’s appeal to potential buyers and hence its valuation.

Putting It Into Practice: Getting buy-In;

Communicating and teaching key numbers; While the groundwork for change is being laid, an open-book company must develop “scoreboards”—vehicles for regular communication of key numbers to the workforce. Business-unit scoreboards include an income statement and a balance sheet, along with any other numbers that are critical to the unit’s longterm health. Departmental scoreboards may focus on key operational measures, such as units shipped or defect rates, but they, too, must include a financial component. Because the goal is to enable people to take action in anticipation of future events, scoreboards usually include forecasts of months to come as well as actuals for past months. The scoreboards themselves may be electronic or they may be big bulletin boards or paper handouts.

An open-book scoreboard is based on the shared understanding that a business unit’s numbers are compiled from performance and financial data from each department or operating unit. The departmental scoreboards thus help employees understand the connection between their own efforts and the business unit’s results (“Employees see how their decisions affect company income”). If a facility sets a goal of lowering vehicle costs, progress toward the goal is tracked on the income statement as well as on an operational chart. Employees learn not just that cost savings are important—any manager could convey that message—but why they’re important. They also learn that cost savings can’t be considered in isolation but only in conjunction with production volumes and revenues.

Employees see how their decisions affect company income; Open-book companies, of course, have no monopoly on keeping scoreboards, but they do face a peculiar challenge in that they expect everyone in the organization to understand the scoreboard’s numbers. Some companies employ specialists to teach employees the fundamentals of developing accountability.

Developing accountability; The hallmark of open-book management isn’t just seeing and understanding financial and other numbers. It’s taking joint responsibility for making them move in the right direction and thus for helping the company meet its objectives. Like any system of responsibility and accountability, open-book manage-

Rewarding employees for business success; Traditional bonus plans are typically designed by compensation consultants, communicated to employees through a handout, and forgotten about until it’s time for the checks to arrive. An open-book bonus, by contrast, is pegged to numbers that employees see regularly, that they understand, and that they can affect. The bonus plan is thus an indispensable part of the management system because it answers the inevitable question: what’s in this for me?

Generating—and maintaining—excitement; Every manager has seen change initiatives that were introduced with great fanfare slide into obscurity as old priorities reasserted themselves. Open-book management will not succumb to this pattern if it has the full support of senior managers. It can be made competitive and rewarding with game play. A game is simply an initiative focusing on immediate improvement in a given area. Companies call it a game because it has a starting point, a set of rules, a goal, and a reward for winning. Every game focuses on financial results. In effect, a game is open-book management in microcosm. Employees learn that what they do on the job every day affects some number that ultimately affects the financial performance of the business. The satisfaction comes primarily from figuring out how to win and then winning. The other, however, is that game playing is dependent on the entire context of open-book management, which teaches employees to understand and care about the business. In open-book companies, people understand that games are mostly a fun and interesting way to learn the business—and that the real payoff will come as the whole business unit improves its performance.

Accounting Corner

With conventional initiatives, a company’s decision to hire consultants is usually the critical step. The consultants hand out the reading materials, teach the classes, and work directly with managers and employees to implement the prescribed changes. With open-book management, consultants typically coach from the sidelines. Because it affects many different parts of a business, open-book management requires the ongoing support and involvement of senior managers. Because it is in many ways a cultural change—it teaches everybody in the organization new ways of thinking and acting—it also requires the ongoing involvement of middle managers and frontline employees.

ment needs a structure, a fact often missed in press accounts of open-book companies. The hallmark of open-book management is employees’ joint responsibility for moving the numbers in the right direction. Open-book management usually begins with department-level meetings, which must develop and monitor numbers that come from the ground up. Then employees begin to experiment with ways of affecting the numbers, which may also encourage them to develop better metrics so that they can get a handle on the most important drivers.

In Conclusion—Knowing Why Matters; Readers familiar with the open-book management movement in the United States will recall that financial transparency and immediate feedback on results, in the form of monetary bonuses for employees, are its central elements. However, a major question emerges for open-book managers as finances are made transparent and employees are rewarded for performance. How can performance be improved? Sweat and longer hours are not the answer but will be employed if no one knows how to work smarter.

Open-book management provides the why; it teaches the connection between specific performance improvements and the company’s business objectives. A financial incentive—often missing from conventional how-to programs—is a critically im-

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Accounting Corner

portant part of this linkage, even though it is rarely more than a small fraction of an employee’s compensation. It says, in effect, “There’s a reason for all this extra effort that you’re putting in, and that reason is the financial success of the business you work for. As the business produces wealth, that wealth will be shared with you.” Such a message goes a long way toward overcoming the cynicism that greets so many change initiatives.

Because open-book management is a system rather than a howto program, it is not a quick fix. Implementation is a long and cumbersome process, particularly in a large company, and the effect of the new way of thinking on the bottom line may not be apparent for some time. The power of open-book management lies not in the short term but in the long term, in its ability to change how people think and act, day in and day out. Business success always depends on a wide variety of factors. But this is a constant: whether a company’s employees care if it does well, know how to help it do better, and have a reason for learning new skills and attempting new tasks. The people who work for open-book companies give their employers a powerful competitive edge in that department.

About the Author . . .Salvatore Schibell, CPA, CFP®, MS Taxation, MBA, CGMA, is the tax partner at Lawson, Rescinio, Schibell & Associates, P.C. One of his specialties is working with contractors to maximize profitability utilizing his certified global management, financial planning,and tax planning specialties. Sal has many years of experience and can be contacted at 732-539-7328.

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in the lobby By: zoe baldwin

I

Heading into the lame duck session, Senate Democrats have a majority of 25-15 and it appears the Assembly majority is 52-28.

Republicans were able to flip the Senate seat in the 1st district, where incumbent Senator Bob Andrzejczak was defeated by Cumberland County GOP Chairman Michael Testa, Jr. for the seat held by Jeff Van Drew prior to his election to Congress. Republicans also flipped both Assembly seats in that district where Democratic incumbents were defeated by Lower Township Mayor Erik Simonsen and Ocean City Councilman Antwan McClellan.

UTCA would like to congratulate all of our legislators, especially Assembly Minority Leader Jon Bramnick, who survived a close contest with opposition from both sides. We look forward to the new session and to working with all of our elected leaders to make New Jersey a better place to live and build.

NOTHING QUIET ON THE TRENTON FRONT Two days after the election, legislators returned from a nearly five-month recess and got right down to business. Their first week back at it, legislators introduced an impressive 244 bills, and each non-holiday week between now and the end of the year will be packed with heavy committee agendas in both houses. Several themes relevant to our industry have emerged, and we’re just getting started in a few arenas.

Labor is a clear focus right now with legislative packages centering on a few key issues including worker misclassification, independent contractor reform and the expansion of project labor agreements. This is a continuation of a trend as the legislature has been cracking down on companies convicted of breaking labor laws this year and has already passed legislation that increases penalties for those convicted of wage theft and allowed NJ Department of Labor to issue stop-work orders at jobsites where wage violations occur. The PLA expansion is the biggest bill for our industry, but the text has not yet been made public. Current law states that PLAs are only permissible on public works construction projects over $5M, but does not cover transportation infrastructure, pumping stations, and water or sewage treatment

plants. We expect the new bill will seek to remove one or both of those exemptions but retain the $5M trigger. While the details are unavailable at the time of this writing, UTCA will keep you informed through newsletters and emails as policy develops.

Water headlines lead to water agendas, and the Senate has been quite busy in this arena. As previously reported in the October magazine, the Senate Community and Urban Affairs Committee held hearings on the Water Quality Accountability Act (WQAA) in response to the continuing lead crisis in Newark. Upon returning, their first agenda included legislation that would require drinking water systems to create lead service line inventories and sets aggressive replacement schedules once those lines are discovered. The Committee also passed legislation to allow a municipality to adopt an ordinance enabling access to residential properties to perform lead service line replacements, as well as a bill requiring property condition disclosure statements to include a question concerning the presence of lead plumbing in residential properties.

This agenda is just the first in what we expect to be a series in response to the aforementioned WQAA hearings. Senator Troy Singleton, chair of the Community & Urban Affairs Committee, expects that the bulk of legislation that will tighten infrastructure maintenance and repair standards will be introduced and heard in the new session that starts January 2020. Some of those bills will reflect the policies and ideas in the UTCA water infrastructure investment policy platform that we have been reporting on over the past two years. This expected state action is welcome news for builders, even more so with a federal drinking water funding increase set to come online in the next year. For more details on the substance of these efforts, please see the Pipeline article by Dan Kennedy in this issue.

Legislative News

t was an interesting election season, with the full state Assembly on the ballot and a special race to replace the late Senator Bucco, who passed unexpectedly weeks before the election. Republicans gained two seats in Assembly and one in the Senate, with one district still too close to call at the time of this writing.

On the transportation front, the Senate committee recently cleared a bill that establishes a commission tasked with studying how to tax electric and other alternative-fuel vehicles that aren’t subject to the state’s gasoline tax. Introduced by Committee Chair Senator Diegnan, S4090 would create a commission to study how to offset costs of maintaining the transportation system paid for by a gas tax with diminishing returns. This action comes in response to lagging gas tax collections coupled with the expected statewide incentive plan to encourage the purchase of electric vehicles. UTCA will be watching this issue closely as we get closer to the expected 2023 TTF reauthorization to ensure that New Jersey is able to maintain a healthy capital plan.

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Legislative News

WHAT LIES BENEATH Amtrak is moving forward with geotechnical borings along the proposed pathway for the trans-Hudson Gateway Tunnel in an effort to be shovel-ready the moment federal funding and regulatory approvals come through. As our readers may remember, the geology under the river is challenging and presents a major challenge for the new project, which is why the ARC Tunnel, a previous iteration of the project, used a different tunnel design at a much lower depth. This portion of the preliminary engineering includes: a barge-mounted rig drilling into the riverbed to collect rock and soil samples, four seismic Cone Penetration Tests, a bathymetric survey in the Hudson River, and a surface-based geophysical survey along the Hudson Bergen Light Rail tracks. The work is expected to be complete in early 2020, when the data will be shared on the public database that can be accessed by contractors looking to bid on the project.

For more information on the Gateway Development Corporation’s virtual data room, contact DataRoom@gatewayprogram. org 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.

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By: senator cory booker

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rowing up in New Jersey, serving as Mayor of Newark, and now representing our state in the U.S. Senate, I have seen for decades the devastating impact that a lack of investment in public infrastructure has had on our economy, jobs, and public health. As a densely-populated state with some of the nation’s oldest municipalities, the need to update our aging infrastructure is pressing, and in Washington, I’m working to do just that.

Every day in the Senate, my office hears from constituents about how our decaying infrastructure affects their daily lives and how investments will not only improve New Jersey, but our entire country.

I recognize the hard work that UTCA members and their workers put in to help our state prosper and I am doing all I can to support your work.

As a member of the Senate Environment and Public Works Committee, I’ve been advocating for increased funding, not only to update the foundations of our transportation and water infrastructure, but also to improve the health, resiliency, and competitive advantage of our state. Putting people to work while repairing our roads, bridges, railways, and pipes is a win for utility contractors, the people of New Jersey, and the country.

Safe Water for New Jersey Among the most pressing public health issues facing New Jersey is lead in our drinking water. The instance of lead in any drinking water is problematic, but today, as many as 350,000 lead service lines are in use throughout the state, posing daily risks to the health of New Jerseyans. Our water infrastructure gets older every day, and as policymakers in state and local government confront the high cost of replacing service lines, I am working diligently to provide federal support.

After an engineering study was released last October finding that lead was leaching into Newark’s drinking water, I authored legislation to direct millions of dollars towards projects to remove lead from drinking water. In October, that bill, the Water Infrastructure Funding Transfer Act, was signed into law. The act allows states like New Jersey to transfer a percentage of unused funds from their Clean Water State Revolving Fund into their Drinking Water State Revolving Fund to fund additional drinking water projects. In New Jersey, this is freeing up $100 million in federal funds for projects that will get lead out of our drinking water. New Jersey can distribute the newly authorized funds in the form of grants or forgivable loans, relieving the financial burden on Newark and other communities across the state.

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a message from u.s. senator cory booker Support for Water Infrastructure and Workers My office also authored a number of key provisions included in the America’s Water Infrastructure Act of 2018 (AWIA) a comprehensive water infrastructure package that authorizes multi-billion dollar investments in water infrastructure systems throughout the country.

AWIA contains a series of programs to help states like New Jersey rebuild and update aging water infrastructure and defend against the devastating effects of flooding and extreme weather.

After hearing from water utility workers in New Jersey about their aging workforce, I successfully pushed for AWIA to establish a new grant program to help develop the next generation of water utility workers. The grant program, based on my Innovative Water Workforce Development Act, will help training and education organizations develop innovative approaches for developing the workforce and expanding career opportunities in the water utility sector. This will help draw more workers to the water utility sector and provide the next generation with education and resources to help them succeed in the field.

AWIA also expanded eligibility for Clean Water State Revolving Funds, a provision based on my Residential Decentralized Wastewater Improvement Act. The eligibility expansion allows low- and middle-income households to receive grants to protect their water quality and help connect homes in rural, small, and tribal municipalities to existing wastewater infrastructure.

Funding Our Transportation Infrastructure I also contributed important provisions to America’s Transportation Infrastructure Act of 2019, a bill that would authorize $287 billion in transportation spending to update infrastructure, reduce emissions, protect workers, and improve safety. The bill includes the Toll Credit Transfer Program, a provision I authored that could give states significantly more funding for transportation projects.

Under existing law, the federal government gives states toll credits when they use toll revenue to invest in transportation infrastructure.

States then use toll credits on local match requirements for federally-funded projects. The Toll Credit Transfer Program gives New Jersey a massive opportunity to increase infrastructure investment by allowing the state to sell its billions of excess highway toll credits in a marketplace to bring in revenue for local transportation projects.

From repairing bridges to replacing pipes to digging tunnels, I can’t overstate how important the work of utility workers is to New Jersey’s future. My entire office is committed to improving our state’s infrastructure and I will continue standing alongside UTCA members and partners in the fight to invest in our state.

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nj transit's new capital plan By: kevin corbett, ceo of nj transit

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rom 2012 to 2018, NJ TRANSIT – a multi-billion-dollar organization with more than 1,200 trains, 2,200 buses, and 90 light rail vehicles – did not have a planning tool as basic as a public-facing, five-year Capital Plan. Neither did the third-largest transit agency in the nation have a program in place to comprehensively assess the condition of the 153 NJ TRANSIT-owned rail stations, 62 light rail stations, 30 bus stations and terminals, and various maintenance facilities.

As one of my first orders of business after joining NJ TRANSIT in February of last year, I charged my team with conducting full condition assessments of every asset in our system. Routine condition assessments are essential to any organization that owns and maintains capital assets. They provide an invaluable snapshot of our system, showing us which assets are in a state of good repair and which need work or even complete replacement. They help us develop a healthy pipeline of projects and allow us to be proactive instead of reactive in how we care for our assets. And perhaps most important: they inform investment strategies and provide a consistent, systemwide framework for prioritizing investments.

In my first six months on the job, we assessed one-third of all our stations and facilities, sending out teams of structural, mechanical, and electrical engineers across the state. We’re assessing the balance of our assets this year and using these assessments to inform a fiveyear, needs-based Capital Plan that’s due out next spring.

The Capital Plan will prioritize NJ TRANSIT capital projects from 2021 through 2026 and includes one of the biggest and most important capital projects in a generation: rebuilding the Portal North Bridge. This critical piece of infrastructure is nearly 110 years old and a single point of failure on the Northeast Corridor, causing major rail traffic disruptions due to mechanical failures that inherently

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getting back to basics with an essential planning tool

occur on a bridge in this condition. Each weekday, nearly 300,000 passengers cross Portal Bridge between New Jersey and New York City.

Thanks to our considerable efforts since 2018, Portal is ready to go. We completed final design and a Federal Environmental Review. With Amtrak’s support, we finished five major early construction elements needed for the bridge’s eventual replacement – all on time, all on budget. In September, we submitted to the Federal Transit Administration a revised financial plan for the bridge, and we eagerly await approval to move this critical, shovel-ready project forward. As long as the finances are there, we’ll put Portal North Bridge construction contracts out to bid between the 1st and 2nd quarters of 2020.

Portal North isn’t the only bridge replacement project in our new Plan. We’ll also replace the Raritan River Bridge, an approximately $600 million project. After significant interest from various firms, we’re now reviewing prequalification submissions to build the bridge’s foundations and complex movable center span. We plan to start construction in 2020.

Other major projects in the Plan include Elizabeth Station and the Delco Lead Storage and Inspection Facility, both beneficiaries of our renewed relationship with Amtrak. Before I joined NJ TRANSIT, this relationship was fractured to say the least. These projects were long-stalled and languishing. But last year, with Governor Murphy’s support, I was proud to finalize a new way forward, representing a clean slate and a new era.

Elizabeth Station is already underway as NJ TRANSIT’s first-ever commuter rail Design-Build station project on the Northeast Corridor. This $71 million reconstruction effort includes new station buildings, longer platforms for additional boarding capacity, new security and communications systems, improved accessibility for people with disabilities, and new artwork. The first phase of construction is scheduled to begin by the end of the year. Delco Lead includes the construction of electrified storage tracks, construction of passing siding along the Northeast Corridor, and the design and construction of a service and inspection facility.

Our Long Slip project will modify a 2,000-foot former barge canal next to the Hoboken Terminal Yard to eliminate it as a conduit for flood water. This approximately $200 million project will allow us to operate train service longer and recover more quickly from storm events and it includes two major construction contracts.

In October, NJ TRANSIT’s Board awarded an approximately $40 million construction contract for this project, which includes the filling of the canal. We are completing design of the second phase

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of the project, which includes the construction of three ADA-accessible platforms to support six new tracks and other amenities.

NJ TRANSIT has also embarked on an ambitious effort to modernize electrical infrastructure. Over the last twelve months, we have authorized more than $60 million in construction of new substations in Hoboken, Bay Head, and Kearny, New Jersey. In addition, NJ TRANSIT is advancing a $232 million joint development partnership with Public Service Electric & Gas to build a new “Mason Substation” – a project that will serve as the future interconnection for our NJ TRANSITGRID initiative.

Through our new and ambitious Capital Plan, NJ TRANSIT is getting our house in order and planning for the future – moving from crisis management to strategic management. Not so long ago, NJ TRANSIT was forced to chase money in search of priorities. Today, we’re defining our priorities first to inform our investments. Overall, we’ve committed more than a billion dollars to capital projects and increased construction spending in Fiscal Year 2018 by more than double what was expended the previous fiscal year.

But if we want to get back to that place of national prominence, we’re going to need a fully-funded Capital Plan. It’s essential not

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just to our transit system, but to our region’s economic vitality. In Fiscal Year 2020, all of our $1.4 billion capital budget – save for $5 million – is programmed to support contractual obligations, projects already underway, or equipment being delivered. That means we’re going to need support from the business community, Employer Legislative Committees, and other groups to advocate for more investment and a healthy NJ TRANSIT Capital Plan. In September, the MTA unveiled a robust, $51.5 billion five-year capital spending program. NJ TRANSIT deserves a commensurate level of investment and must not be left behind.

We are the engine that powers New Jersey, and our upcoming Capital Plan will be an instruction manual for sustaining and accelerating that power – enhancing safety and making the system more reliable, cleaner, and more customer-friendly. We must not repeat the mistakes of the past by underinvesting in our transit system. Our people and our region demand more. They demand and deserve a modern, world-class transit system, which is exactly what our new Capital Plan will deliver.

leaders need to wallow with their people By: david sarkus, MS, CSP, David sarkus international, inc.

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hen I speak to leaders, I often tell a story about GE’s former CEO, Jack Welch. Although Welch was known to be a challenging taskmaster, he knew the importance of spending quality time with his workforce or “wallowing with his people.” He was big on teaching appropriate “wallowing lessons” to his leaders.

For leaders to wallow, they need to feel comfortable in their own skin and be genuine with others. The thought of wallowing often brings to mind a hippopotamus or rhino rolling around in water and mud, having a great time with few cares or concerns.

But from an organizational standpoint, I see leaders having fun and enjoying time spent with their followers – laughing, asking, listening, and sharing appropriate and respectful thoughts that might not otherwise be shared, but also communicating information that’s normally filtered or closed off from those who are not “a part of their worker-group.” More specifically, this opens up a part of the employees’ group that is normally “closed off ” to formal leaders and sensitive safety-related issues and concerns that might be considered off-limits.

Wallowing allows workers to see their leaders as “real people” who want to better relate to and understand others, but also to identify more clearly with their challenges – largely because of similar goals and personal values. By spending time with workers on their turf and allowing them to identify appropriately with leaders, greater openness and transparency can develop. And if greater forms of identification and transparency occur, then communications can become healthier, more open, candid, and helpful in improving safety. It happens and I’ve been a part of it.

When leaders provide open and candid communications that are both helpful and reliable, followers begin to feel they need to do the same. And when followers provide important and valuable safety-related information to their leaders, equilibrium is established. However, when the balance of communications and appropriate actions is off and out of balance and when there is un-

Greater transparency and openness creates better understanding and more coherent communications that decrease errors and incidents. Individuals regularly file and filter communications, retaining what they find useful and valuable and discarding information that will not help them to communicate better and work safer.

Wallowing helps to establish greater credibility with others, which in-turn leads to better relationships, morale, communications, and trust. When trust develops, open communication is more evident and helpful and workers will often provide greater forms of unfiltered information about precursors, near misses, and unabated exposures. All of this will allow for more timely interventions and improvements to prevent serious injuries and fatalities.

Are you helping your leaders feel more comfortable talking about safety? Are you helping them to ask the right questions in order to build credibility so that challenges and exposures can be uncovered and controlled? Are you helping your leaders create the right space and place for them to wallow respectfully, openly, and comfortably?

It’s up to us to help create more equilibrium, balance, and genuinely open communications so that both parties are giving and receiving regular forms of unfiltered information.

Safety Perspective

Jack Welch likely continues to stress the importance of leaders spending “wallowing time” with their followers. Even more, the word “wallow” resonates because the metaphor creates images those leaders can draw upon regularly. Leaders have to learn to “appropriately wallow” one-on-one and with groups. When I coach leaders, I often hear that the image of wallowing stays with them long after I’m gone – even when they don’t feel like wallowing! Ultimately, the thought of wallowing moves their thoughts to intentions and then to purposeful actions.

equal flow of information between groups, there’s much greater risk of frustration, anger, resentment, closed-communications, and unwanted consequences (Newcomb, T. M. 1956, 1960).

Our organizational leaders need and want to take on the role of facilitator, coach, champion, or even cheerleader. It’s what’s needed to spend productive time with workers.

Many organizations have some type of vision for safety but is it backed by meaningful actions? I’ve stated before, “vision without purposeful presence is folly.” Leaders who have a great vision for safety also need to learn to wallow appropriately. And in doing so, they will likely experience what Jack Welch wanted his leaders to feel – a purposeful presence that leads to open, rather than closed, communications and much more. From a leadership perspective, this is partly key to improving safety performance and reducing serious events that can be controlled or eliminated.

References: Newcomb, T. M. The Prediction of Interpersonal Attraction. American Psychologist, 11, 1956, 575-586; Gouldner, A.W. The Norm of Reciprocity: A Preliminary Statement, American Sociological Review, 25, 1960, 161-179.

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lessons from the impeachment hearings By: jonathan landesman, cohen seglias pallas greenhall & furman

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s I sit here and write this article, we have experienced the first day of the televised impeachment hearings. To say that my wife was interested would be a massive understatement. She’s a true political junkie and she had the DVR running all day while we were both toiling away at work. After spending a couple of hours together on the couch watching the coverage, my mind began to wander. I thought about what lessons one could draw from the impeachment hearings that would apply in a broader context. As an employment lawyer who has spent the last 20 years defending employers in the courtroom, I saw several points begin to crystalize.

Over the years, I have had dozens of employers ask me whether they should record conversations with employees, particularly when meting out discipline or conducting a termination meeting. In almost all instances, my answer is a flat out “no.” From a legal perspective, many states have enacted wiretapping laws that make it unlawful – even criminal – to record surreptitiously any conversation without each party’s consent (not just telephone conversations). And from a practical perspective, audio recordings are fraught with problems like sound quality and background noise. And recordings often make for bad evidence

The second lesson, although somewhat cliché, is that “timing is everything.” A key issue in the impeachment hearings is figuring out the precise sequence of events. Which came first: President Trump asking Zelensky for a “favor” or the order to delay releasing $400 million in military aid? Timing is important because it links events together and speaks to the issues of causation and motive. In the employment litigation context, retaliation cases often hinge on timing, especially the passage of time between an employee engaging in a protected activity such as making a complaint about workplace harassment and the time the employer institutes an adverse employment action such as a termination.

Using this example, if an employee is terminated within days or weeks of making a protected complaint, his or her claim for retaliation would be relatively strong. But if the complaint is many months stale before the employee is terminated, the likelihood of the employee prevailing decreases dramatically.

The final lesson that I drew from the first day of the impeachment hearings has to do with electronic communications. On any given day, I may exchange over 200 emails and texts with clients and other lawyers, and these electronic communications never go away. In employment litigation, employers are often unpleasantly surprised when I explain to them that the plaintiff ’s counsel has served a document request demanding the production of years’ worth of emails, texts, and other communications.

Managers and supervisors especially tend to view text messages as a friendly, informal communication. Messages that are unprofessional or casual – either in tone or substance – can come back to haunt you in an EEOC investigation or federal court proceeding. The best advice I can give employers in this area is to train their management team so that they understand and appreciate the potential liabilities associated with texting and emailing about employees and their job performance.

Labor Relations

The first lesson has to do with the wisdom of recording conversations. At the hearing, there were countless questions about the “transcript” of the July 25 telephone conversation between President Trump and Ukraine’s Volodymyr Zelensky, but it wasn’t really a transcript at all. The so-called transcript wasn’t created using an audio recording and there was no stenographer taking down every single word verbatim. Instead, the transcript was really a memo prepared by staffers who wrote down what they heard, or what they think they heard, collectively.

at trial because they don’t capture physical gestures (like a nod meant to answer a question in the affirmative). For these reasons, in almost every conceivable situation, employers are better off putting away their recording devices and instead taking detailed notes and using file memos to document what was said and not said when communicating with an employee.

So, the bottom line is that no matter which political party you support and who you are rooting for in the impeachment hearings, make sure you abide by the lessons above to protect your company from potential employment law liability.

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creamer environmental Cover Story

celebrates 25 years By: zoe baldwin

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s a densely populated and heavily industrial state, New Jersey has an unfortunate toxic legacy to contend with, some of which we are only just uncovering. At the same time, younger generations are choosing to live in cities or dense suburbs which often were the home of old industrial sites that left a legacy of soil and groundwater contamination. Across the state, everyone is looking at how we can make New Jersey a safer and healthier place to live and work.

That’s where Creamer Environmental (CEI) comes in. Established in June of 1994, the firm has built its stellar reputation from its leadership’s unique combination of regulatory, construction, and remediation experience, which is not often found at traditional remediation firms. Managed by President Thomas J. Cawley, P.E. and Executive Vice President Tracy Straka, CEI specializes in the implementation of complex soil, sediment, and groundwater remediation services throughout the tri-state area.

Both Tom and Tracy have been with CEI since day one and both came to their positions similarly.

“Fletch Creamer, Sr. knew my old boss at an environmental consulting/engineering firm,” Tracy tells me. “He and Fletch were talking one day about how JFC wanted to get into environmental construction and remediation work. I found myself nominated to come over to the Creamer organization to start a new environmental company.”

Deep excavation supported by a coffer dam

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Sheeting Installation next to an active tank farm

“We both started it up,” Tom says. “I was a Project Manager for J. Fletcher Creamer & Son. I had the most environmental experience of anyone in the company, so I was offered this new position, which was a great opportunity!” He further explained that “In the early days, the vision was that we would be a sister company to J. Fletcher Creamer & Son, Inc. (JFC) and solely support them with any environmental issues which came up on their projects.

Prior to CEI, when JFC would do highway, site, or utility work, if they encountered any type of contamination, their clients would stop JFC’s work and bring in an environmental contractor who did largely the exact same type of work that JFC did, just with a little more training. JFC quickly realized this is work that they already did, so the decision to branch out into the environmental world was an easy one.”

This concept only lasted a few months before we realized JFC wasn’t going to have enough work to keep CEI afloat, says Tom. So, the fledgling firm branched out, trying their hand at everything from emergency spill response to environmental consulting and engineering, but quickly decided that they were the wrong markets to pursue. “After about a year, we realized we were really best suited for the remediation construction space, and we focused on growing and becoming leaders in that market space.”

It only took a year or so before the new firm was rocking and remediating. JFC clients began to take note that Creamer Environmental could do environmental remediation work, and independent projects started to come their way. As the firm grew, its expertise expanded to encompass a wide range of innovative remediation technologies including in-situ treatment of soil and groundwater; installation of capping and containment systems including the installation of water tight sheeted cut-off walls, slurry walls, vapor barriers, and caps; soil stabilization; water treatment; and much more. CEI’s client base also grew beyond

the initial JFC customers to include many Fortune 500 companies, utilities, and developers throughout the region. It is a testament to the good work that CEI consistently performs that they have been working for many of the same customers since their inception.

CEI and many of its employees have received awards, commendations and honors from our clients and professional organizations. They have been recognized each of the past 20 years by ENR magazine as one of the Nation’s Top 200 Environmental Contractors.

Their main niche, manufactured gas plants (MGP), became a wheelhouse specialty very early on. “Our first big job was also our first manufactured gas plant. It was in South Amboy around an established apartment complex, and we had to go and remediate with all the tenants there. It was only about a $200k job, but back then it was our first and it was a really big deal,” Tom remembers. “We learned a lot, but we weren’t exactly sure what we were getting into. It turned out to be a major business line.”

After two decades of successfully surmounting massive project challenges, in 2015 a new kind of challenge presented itself. The sale of JFC, but not CEI, to APi forced a full separation of the two companies and required the management of CEI to take on an entirely new set of responsibilities. “It was kind of like doing a startup in the fast lane of the highway,” Tracy tells me. “We were cruising at the speed limit and suddenly, while you are managing all of your clients, your staff, and all of your daily responsibilities, you have to recreate all of the support services that went away with the sale. We suddenly found ourselves responsible for IT, accounting, HR, banking, treasury, bonding, audits, and all the other support stuff that JFC had been providing. We had to quickly figure out what we were going to do.”

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Installation of a watertight bulkhead that also acts as a cut-off wall to prevent migration of contamination

In addition to its manufactured gas plants, the company has successfully cleaned up chromium-contaminated brownfields, PCB laden Superfund sites, pesticide sites, and landfills and has performed sediment remediation in waterways, often integrating civil construction with environmental work. One of their most complex projects was a 2006 remediation that entailed replacement of an existing gas tunnel that ran across the river and housed two 30-inch cast-iron gas mains, which was located on a contaminated site. CEI was also responsible for remediating and restoring 1,500 feet of riverfront, all while working to meet very tight timeframes.

“In seven months,” Tom adds, “we had to go from having none of these functions to 100% of them. We had to buy a computer system, we had to buy new software, hire a controller and payroll people, buy equipment, find a construction yard, and everything else that we had previously. We also had to reassure our employees and clients that nothing would change for them.

Tracy elaborates, “Neither one of us is an accountant, neither one of us is an IT person, so we had to go out and find someone to do that while also learning enough about these functions to make sure that we hired and supported the right candidates. We had a huge learning curve that we had to figure out ourselves . . . we knew what we needed, at least conceptually, but we wanted “It’s really the legacy of our energy past,” Tracy adds, “because to take the time to figure out what would work best for us as a before natural gas pipelines, natural gas was manufactured at stand-alone company as opposed to just keeping what JFC had plants in most major cities including Newark, Jersey City, and been using. So, we actually made the time to do this, and it acCamden, often along the waterfronts. The manufactured gas tually turned out to be a really nice opportunity to look at our was stored in large holding tanks that shaped the city skylines processes and how we worked in order to figure out what were the best things for our operations, because of days past. One of the byproducts of this there are actually a lot of nuances between manufacturing process was coal tar, which environmental work and civil work.” is the primary legacy contaminant at these We’ve built a reputation for sites. The state and the federal government quality work, innovative ideas, I asked whether they brought in consultants, gave utilities timelines by which they needand more and more often, our but a small beam of pride came over the two ed to clean up these old facilities because the clients come to us and say we as they said almost in unison, “No, we just coal tar residuals contaminated subsurface soils and leached into the groundwater and want to do this – how can we do did it.” sediments.” For 25 years, CEI has been in“I sat with every single person at JFC who it better? That’s the value volved with all phases of MGP cleanup from supported CEI and said, ‘Tell me what you we bring in our industry.” cleaning and demolishing the gas holders to do’ and just took notes and made lists and performing any necessary soil, sediment and - Tom Cawley that’s how we started it.” Tracy continues. groundwater cleanup.

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“There are a lot of guides to mergers and acquisitions, bankruptcies etcetera, but there’s no guide for going through a corporate separation. These interviews resulted in an 18-page spreadsheet of things to do, and we just kept working through it, task by task until it was completed.”

supports everybody else. Although we’re all many years younger in that photo, you don’t realize how quickly the time went.” Tracy notes, “but by the same token, many of the people that were hired after us are still here. The company keeps growing, so we’ve got this really nice generation of people who are 10, 15, 20 years be-

“The separation wasn’t inhospitable,” Tom adds. “Everyone was very helpful, but when you sit with someone and ask them for a list of things that they do, they tell you the things off the top of their heads that are a part of their routine, and then a month or two later, they call to say “I forgot to tell you this” because it just happened to come up during the course of their work that day.

So, the list kept getting longer. We’d knock something off the top of the list and add three more to-dos on the bottom.”

Ultimately, they both believe that the process has made them much better managers who are more in tune with the nuances of their company. “We learned so much, especially about the underappreciated heroes of the organization,” Tracy says. “You know it’s like the IT folks – you appreciate them when your computer is broken, but we really never had a full picture of what happens behind the scenes with backups and virus protection and getting field offices set up and a hundred other things that you don’t realize because they’re out of sight and out of mind.”

They also point to some of their business relationships as key to a smooth transition. “Sax, our accountants, were instrumental with helping us develop our accounting and payroll departments.”

Tom points out. After the separation, Sax became a major resource in the transition process. “Sax’s extensive experience with construction helped us when looking at accounting software and finding the right candidate to fill our Controller spot. They went way above and beyond to support us.” Said Tracy. “And still do,” adds Tom. But most of all, Tom and Tracy attribute CEI’s success to its people. At one point, Tracy points to a picture of her staff from one of the past UTCA magazine covers and points out that everyone in the picture is still with the firm. “We’re all a little bit grayer and a little bit more wrinkled, but there’s very little turnover here.

People come in, they start on a career path, and they learn from and build up each other. It’s one big team here where everybody

In-situ soil stabilization at a former Manufactured Gas Plant site

hind us and are committed to CEI’s mission and vision. They’re learning more and more every year and eventually will fill our shoes.”

“Because of our employee commitment, we have a natural succession plan of experienced folks right behind us,” adds Tom. “For example, Tom LaViano, our VP of field operations, started right out of school with zero experience and he’s now running all the field crews. Almost all our supervisory staff started out in entry level positions and have earned promotions due to their hard work and commitment. We are very fortunate to have some of the most talented folks in the industry on CEI’s team!”

“Our success really is all about our people. We would not be where we are without our employees. I don’t remember who gave me this piece of advice – it was many years ago,” Tracy starts, “But I’ve always kept it in mind because I believe it matters. ‘You can buy people’s time and buy their talent, but you can’t buy their motivation, dedication, or commitment. You have to earn that’. I hope we do earn it!”

And for CEI, being all about its people means being all about their safety. “Communication is a huge part of a successful safety program, and safety is a really big deal for us,” explains Tom. “We have one of the best safety records in the industry, but it isn’t about the number on the paper, it is about everyone’s constant focus on safety both in the office and on the jobsite, every single day,” explains Tom. “Our people are committed to safety and they’re not afraid to flag safety issues. Every employee on our job can stop the work, and they know it. If they feel something is unsafe, they can refuse the work and go to the superintendent without repercussion.”

Installing water tight sheeting

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“We’re not safety cognizant,” Tracy adds, “we’re safety elite.

Everyone signs a corporate commitment to safety every year, they’re trained and monitored, and sometimes they’re even let

go if they can’t meet our safety standards. They know that management sees part of their job responsibility as going home in the same condition they came to work in. We had a job a few years back where we had a few new guys out of the union hall in New York City, and the workers actually sent a letter to us formally thanking us for paying attention to their safety – they’d never worked for anyone on that level before. It was totally unsolicited, and they sent it to senior management.”

Settled into their new autonomy with a homey office in Cedar Grove and a yard in Denville, Creamer Environmental is poised and ready to take on any industrial mess the tri-state area has to offer. UTCA wishes Tom, Tracy, and their team all the best on this milestone and all of those yet to come.

Dredging of contaminated sediments using an environmental bucket

Cover Story

As for the future, CEI sees great potential ahead in the ever-evolving industry. Tom told me proudly, “We’ve built a reputation for quality work, innovative ideas, and more and more often, our clients come to us and say we want to do this – how can we do it better? That’s the value we bring in our industry.”

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Feature Story

c & H agency completes 50 years in business

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hrough five decades and two generations of leadership, C&H Agency has served the insurance, surety bond, and risk management needs of construction contractors and earned industry-wide recognition as an expert provider to clients, trusted partner to carriers, and a firm that appreciates its employees.

Now celebrating 50 years in business, the members of C&H Agency’s unparalleled management and service team combine decades of knowledge and experience in the singular pursuit of the firm’s mission: to build a strong, long-lasting bridge between contractors and their insurers. In addition to deep appreciation for every client they serve, the company has always placed tremendous value on forging solid, long-lasting partnerships with insurance and surety companies nationwide, believing that every market they represent is essential to tailoring each insurance and bond program to meet a contractor’s specific needs. Together with the carriers it represents, C&H Agency has covered thousands of the construction projects that have shaped the New Jersey, Tri-State, and national infrastructure.

Specialized Agents for Specialized Clients Established 50 years ago in Clifton, New Jersey as Culnen & Hamilton, the company is now known throughout the indus-

Pictured from left to right: Mark Culnen, Louis Vlahakes, Daniel Culnen, Anthony Zaza & Robert Culnen

64 Utility & Transportation Contractor | december| 2019

Pictured from left to right: Mark Culnen, Daniel Culen & Robert Culnen

try as C&H Agency. Original founders Daniel (Dan) Culnen and Robert Hamilton consciously combined their individual contract surety and insurance knowledge to focus solely on the construction industry. From inception, they recognized that the risks facing contractors, especially those engaging in public work, demand specialized skill, exceptionally responsive service, and the right placement in the marketplace. “Our clients are experts in their trade. They’re smart and they’ve spent years developing their means and methods,” says Dan. “They have a lot of moving parts to manage every day. They need to know that we’re experts too, that we’ve got them covered so they can focus on building their projects and businesses.”

Just as their early contractor clients did, the two worked tirelessly in their first years in business to gain market share in new geographical territories and construction sectors, and within the first ten years, they had built C&H Agency into one of the largest construction specialty agencies in the tri-state area.

As the firm’s 10th anniversary approached, Robert Hamilton decided to follow his passion for construction and established his own construction firm. Dan Culnen purchased his partner’s share of the company and the organization was rebranded as C&H Agency. With the continued growth and success of its existing customer base and the development of new clients and market segments, the firm prospered through the 1980’s and exponential growth necessitated the purchase of a larger building in Totowa, NJ where the company is still headquartered today.

The beginning of the 1990’s saw the agency blossom into a true family business when the first of Dan’s three sons started working for the firm. Michael Culnen joined the agency after college and for the next decade and a half made a lasting impression with significant contributions to agency operations. Michael has since left, but the long-lasting impact his time at C&H had on the agency remains.

Rob Culnen, who is responsible for daily operations at C&H Agency, appreciates the resource of his father’s many years of knowledge and insight to help guide the agency’s future. “I respect very much what my father built and I’m proud to continue building on that foundation,” says the second-generation president. He credits high-quality clients, strong carrier relationships, and dedicated employees for the agency’s continued success. While developing his own relationships is important, it is a unique honor for Rob to work today with the second or third generation leaders of so many clients whose founding generation were clients of his father’s.

Pictured are the Surety Professionals at C&H Agency

The Employees – A Team Greater than its Parts C&H owes its success not only to the loyalty of its clients and carriers, but to its employees, many of whom have been with the

Pictured are the Insurance Professionals at C&H Agency

agency for more than 20, 30, or 40 years — some since inception.

The management team includes Pam Boyle, Operations Manager; Lisa Nosal, Surety Manager; Louis Vlahakes, VP of Sales; JoAnn Intiso, Insurance Manager; William Malthaner, Controller; Michele Sabatello, Claims Manager; and key Account Managers Jean Waliky, Angela McNab, Taras Terlecky, Theodora Ferreira, Caren Malthaner, Cristin Durkin and Jennifer Coghlan, all of whom have decades-long tenures there and are supported by a dedicated service team led by Lori Giovannucci. And in 2014, the team gained another tremendous asset when Anthony Zaza joined as Head of Insurance Operations, bringing with him over 20 years’ experience and key underwriting relationships from his time at Chartis/American International Group (AIG) and Starr Companies.

Feature Story

In 2003, Dan’s youngest son, Robert (Rob) Culnen, joined the agency and dove headfirst into learning every aspect of the company’s operations from the ground up. In 2017, Dan’s eldest, Mark Culnen, joined his brother to begin the same rigorous cross-training approach that Rob took to familiarize himself with the agency’s different departments and services in order to develop broad-based knowledge and experience in all aspects of construction insurance and surety.

Impressive as each individual’s credentials are, together their vast collective knowledge transforms them into a team that is greater than the sum of its parts. C&H is recognized throughout the industry as the construction risk specialist clients want to be able to turn to when problems arise. C&H team members have been tapped as keynote speakers at industry conferences and hosted by carriers to share knowledge as part of their own in-house training events. As longtime UTCA supporters, C&H is also a visible participant in organization events.

As undeniably crucial as these employees have been to the agency’s first 50 years of success, the future of the company also depends on them. C&H places top priority on investing in the team’s ongoing development and the company supports continuing education for all licensed employees, provides tuition reimbursement for those pursuing higher education degrees, and sponsors employees in earning industry-specific certifications such as the CRIS designation for construction insurance and the AFSB for surety bonding.

The Road Ahead

Pictured is the Client Services Team at C&H Agency

In looking towards the agency’s future, management sees a great opportunity for growth, both in the long-time client base and in the development of emerging contractors. New companies are also entering the insurance and surety marketplaces allowing the

Utility & Transportation Contractor | december| 2019 65

Feature Story

agency to offer an even greater breadth of coverage to clients.

But Rob believes firmly that C&H Agency must continue his father’s legacy of specialized focus on the construction industry to achieve ongoing success. Resisting the allure of diversification, Rob will not risk diluting the place C&H Agency has claimed as expert in this market by directing resources in any other direction. He knows that staying at the forefront of such a complex and ever-evolving industry requires extraordinary focus and constant adaptation. For the next 50 years and beyond, C&H Agency will remain a trusted ally to its carriers and the most highly-specialized insurance and surety bond agency that construction contractors can choose.

Photography Credits: Ivan Piedra Photography

66 Utility & Transportation Contractor | december| 2019

Pictured is the entire C&H Team at their Totowa, NJ Headquarters

lead issues bring water system accountability to the forefront By: dan kennedy, director of environmental & utility operations

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efore all the national attention on the lead crisis in the City of Newark, UTCA had been pushing for increased funding and more accountability and oversight of New Jersey’s water systems. That’s a big part of what we do for our members and in leading the national Clean Water Construction Coalition.

In recent years, UTCA’s efforts on water infrastructure have increased significantly. In the December 2017 UTCA magazine, the “Pipeline” section focused on the lack of long-term maintenance and long-term capital investment with the hope that a new law (at the time) branded the “Water Quality Accountability Act” (WQAA) would be a big part in changing the historic course of underinvestment. That law was passed and signed by former Governor Christie during the post-Flint, Michigan reverb. UTCA supported the WQAA through the legislative process and has been actively engaging with state agencies promoting effective state-level actions required by the law.

This matters to UTCA members because the WQAA requires (on paper) increased investment in drinking water infrastructure to meet the capital priorities identified in the system’s asset manage-

Thanks to leadership and focused attention spurred by the crisis in Newark, Senate President Steve Sweeney and Senator Troy Singleton in his role of Chair of the Senate Community and Urban Development Committee agreed that oversight is key and held a series of hearings.

In early Fall, UTCA had the opportunity to participate in oversight hearings on the effectiveness of the WQAA. We know that this is bigger than lead and we have been a leading voice pushing for a comprehensive approach on all water issues while capitalizing on public attention focused on lead at this time.

At the initial oversight hearings, relevant State agencies (DEP, BPU, and DCA) had the opportunity to give their perspective as to the performance of drinking water systems under the WQAA. DEP’s testimony was the most critical and told an important compliance story. Based on the best available data, a vast majority of compliance certification forms have been submitted. However, a far smaller percentage were willing to certify that they are compliant with the standards of the WQAA. A relatively small amount were signed by an individual other than the mayor or chief executive officer as required by the law, and many other forms were signed by individuals whose legal authority to sign is uncertain.

This makes many of the certifications legally invalid.

The Pipeline

We all know that good and bad laws are passed that often fail to meet their objectives and, at times, have unintended consequences. In the December 2017 piece, we wrote that the WQAA would create opportunities for UTCA members only IF it is effectively implemented. We drew attention to the lack of clear accountability and oversight in the WQAA and cited that as a risk; two years later, that concern came to the fore as Newark made national headlines due to lead exceedances.

ment plans. It also creates opportunities for UTCA members to assist utilities and apply our expertise in the basic components of water infrastructure: valves, hydrants, and water mains. The article concluded that there was more work to be done and that we would be working hard moving forward to ensure that the WQAA is implemented fairly and in a timely manner. In addition, UTCA committed to engaging the legislature in the future to amend the statute to include wastewater systems and increase accountability.

That future is now.

DEP acknowledged significant “lessons learned” and is currently engaged in rulemaking in order to codify and clarify the provisions of the WQAA, particularly the requirements with respect to asset management. UTCA has been invited into that process, as previously reported. DCA and BPU also provided critical insights, including the need to adapt rate-making options for investor-owned utilities to accelerate the ability of investor-owned systems to replace lead service lines.

UTCA testified that we were on the right path when the WQAA became law and we need to strengthen this critical measure to make sure we stay on track. Expanding and strengthening accountability for this critical infrastructure is exactly the kind of work that will

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protect our communities – not only from lead and the myriad issues we face today, but for all of the treatment upgrades, repairs, and replacements we will need to make on an ongoing basis. It will also have a positive impact for the construction industry as more work will be available to compete for.

We agreed with the DEP that compliance with the existing law has been mixed. Now that the full 18-month window for compliance has passed, we support the efforts by agencies - ranging from increased technical support to enforcement actions - that result in compliance and investment addressing the highest priority projects as identified by each system.

In addition, UTCA recommended that the WQAA can be improved by: • Adding a requirement for lead service line inventories • Expanding the WQAA framework to wastewater utilities • Empowering regulatory agencies (especially the DCA) to enforce compliance with capital planning and investment components of WQAA • Enabling the I Bank to receive federal WIFIA funds • Support Senator Booker’s legislation that allows states to send funds between Clean Water and Drinking Water SRF, up to $100M

The Pipeline

• Enabling a Distribution System Improvement Charge (DSIC) for wastewater – support BPU’s efforts to put that mechanism in place • Streamlining approvals at DEP for critical projects that are focused on replacing old infrastructure in existing communities.

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Already during the lame duck legislative session we see progress on many of these measures. Several laws and regulatory actions in key Departments are in process. Notably, a bill sponsored by Senator Singleton (S4177) would create a statewide requirement for lead service line inventories and establish a legal obligation to replace all lead service lines in 10 years. The Governor has announced his plan to have a $500M public bond question for voter approval. Though not enough and unnecessarily constrained to urban lead issues, the fact that the Governor has finally shown some leadership on water infrastructure is a small sign of progress.

Federally, Senator Booker’s legislation to enable a one-time transfer between the drinking water and clean water funds has become law, and the EPA has introduced new rules to improve the existing lead and copper rules and will increase awareness and accountability (a precursor for increased investment) nationwide.

More state legislative and regulatory actions are expected in January to implement solutions to the major issues identified during the WQAA oversight hearings. Things are really looking positive and it’s due in no small part to the hard work of UTCA and our many partners. This goes past good policy and good government, which is clearly important. In talking to many members and tracking bidding opportunities, it is apparent that there is more work for our members to bid on - a primary goal of UTCA’s efforts.

As previously discussed, UTCA has a water infrastructure strategy that serves as our policy direction especially during times like these, which are rushed, at times crazed, and often out of our direct control. See www.utca.org/water for more information on our policy goals related to these matters and please feel free to reach out to me at kennedy@utcanj.org if you are interested in discussing the matter further.

By: nancy Damato, rda benefit services

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ow unemployment and the high demand for talented individuals has resulted in employers re-examining their employee benefits packages since they are so critical for attracting and retaining quality employees. And with such a diversified, multi-cultural, and multi-generational workforce at most companies, there can no longer be a one-size-fits-all approach to employee benefits. Having the right combination of benefit choices will not only attract the employees you are looking for, but it will also result in a more productive and engaged workforce (according to Met Life’s 17th Annual U.S. Employee Benefit Trends Study.)

What Are the Most Important Components of a Comprehensive Benefits Package?

Traditional benefits (healthcare, dental, and vision), Financial Wellness Programs, and Voluntary Benefits are all at the top of the list.

Healthcare—and offering a variety of options that allows employees to choose what best suits their needs and budget—is key.

The delivery of these benefits is also changing. The use of technology to make appointments and access care via skype, telemedicine, and 24-hour nurse lines, for example, is a necessity in today’s world.

Many health plans are also offering Chronic Care management programs since the annual healthcare costs for workers with a chronic condition are five times higher than healthier workers.

These programs plus health screenings have been successful in lowering costs and helping to keep employees healthy, more productive, and more engaged. Wellness programs, along with wearable devices, have also been an integral part of healthcare programs for many companies.

Adding additional benefits such as HSAs and FSAs enhances the health benefits even more and provides a way for employees to save. According to one report, employee participation in HSAs has grown from 50% in 2017 to 81% in 2018.

Constant communication to employees throughout the year about their benefits is a great educational tool to remind them what their benefits are and how to use them best.

Financial Wellness Programs are becoming more and more important to a company’s benefits portfolio. In a recent survey, 1 in 3 employees have admitted to being less productive at work

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the future of employee benefits: trends for 2020 because of financial stress. In fact, 5 in 10 people live paycheck to paycheck. Concerns over being able to cover out-of-pocket medical expenses, pay everyday bills, afford healthcare in retirement, and have enough money to retire are just a few of the top financial concerns that employees have. Met Life’s survey found that 80% of employees want access to tools to help them plan for their short- and long-term financial goals with financial planning workshops, financial wellness tools, and access to an advisor. Only 20% of employers offer these programs today.

Another key component of Financial Wellness and especially important to younger employees is Student Loan Repayment Assistance. Based on recent statistics, the amounts of recent graduates’ loan balances are staggering. Companies are beginning to include repayment assistance programs, making their benefits package more attractive to applicants. In addition, there may be assistance available on the state level to those that choose certain career paths.

Voluntary Benefits, which encompasses a wide range of benefits, are designed to supplement the core benefits being offered by a company. Employees can choose which ones are important to them and pay for them through payroll deduction. In addition to the basic benefits—life, disability, accident, critical illness, cancer insurance, and hospital gap coverage, companies are also adding pet insurance, identity theft protection, and prepaid legal services. Other company programs include education benefits and training, gym reimbursement, mental health services, and life coaching, to name just a few. All of these are designed to offer employees choices to help them and their families, resulting in a more productive employee.

What are the Next Steps?

Creating the right employee benefits package can be a challenge, but here are some tips to help guide you towards a program suitable for your firm. Check out what your competitors are doing successfully to attract and retain employees. What are important benefits in your industry? Analyze your current benefits package and see what benefits are not being utilized. Perhaps they can be redesigned in some way to be more useful to employees. Ask your employees for their input as well. In addition, your benefits broker is another great resource for providing insight into what additional benefits can be offered to enhance your benefits portfolio for 2020.

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By: paul anovick, anovick associates

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ver the past decade, business leaders have experienced constant, disruptive change at a rapid pace. While change is good it also requires a shift in how you manage your organization. In other words, whatever got you to where you are is not enough to keep you there.

To address this new normal companies are shifting from command-and-control to building a learning organization, a process based on continuous improvement.

Where the leader, as a coach, is the new method to improve performance. In this role, you interact with employees regularly to support, guide and direct them. You don’t tell them what to do, but facilitate their development. Your leadership helps them identify and implement solutions to the challenges they face.

Far more powerful when your people have skin in the game, it is THEIR solution not yours. They no doubt know and understand the problem better than we do, so why not hear their solution then support them on the path to success?

This is what a leader, as a coach, does: 1. Identify talent. Get the right people on the bus. Key to your success is making smart hiring decisions. My client Tom Mullen, of NAP says he’s “Slow to hire, quick to fire.” Investing time upfront pays big dividends. Mistakes are costly to your time and team.

2. Leaders empower others. Effective leaders don’t tell people what to do. They express desired outcomes and provide the tools and support to achieve them. Demonstrate you trust in your team. Belief will energize them and spur innovation.

3. Communicate the vision. People leave organizations when they don’t feel part of the mission. Clear articulation of purpose helps connect your people to a shared mission. Translate your vision into actionable strategies for everyone to execute. Knowing what to do is linked to understanding why they are doing it.

When your employees understand and embrace your organization’s purpose, they’re inspired to do work that not only is good—and sometimes great—but also delivers on your stated aims.

4. Leaders don’t have all the answers. My mantra is: None of us is as smart as all of us. Collaborative leadership draws upon the knowledge base of the team. Encouraging, supporting and providing a safe environment for them to share their ideas, perspective and expertise to reach a common goal.

5. The ability to truly listen is transformative. For some reason, many people believe that the ability to speak articulately is an important prerequisite to achievement. “Seek first to understand then

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the learning organization to be understood.” In valuing what others are trying to tell us, we establish value for what we are trying to communicate to them.

There are several specific skills and techniques that you can develop and utilize to help sharpen your listening skills. a. Take time to listen. b. Be attentive c. Listen with an open mind. d. Listen for feelings. e. Listen for retention.

6. Communicate the intent of your actions. What is it that you want to have happen? The outcome you are looking for? Having a common understanding of the goal enables your people to make decisions in the field when events are changing rapidly. The Marine Corps motto is “Adapt – Improvise – Overcome.”

7. Being a “coach” as the leader is more sustainable. In order to improve performance, you must improve the performer. Coaching drives talent development goals. Spaced repetition helps the team develop their strengths on a continuous basis. Raising the performance level of your people increases the probability of long-term growth.

8. The learning organization. Creating a culture of coaching, within your organization, starts with you. Culture is a way of life shared by a group of people--how they act, what they believe, how they treat one another, and what they value. The rapidly changing environment requires us to be constantly alert, embracing change and learning how to overcome obstacles.

The challenges facing us today will increase in intensity, the speed with which change occurs will increase; and our competition will change. Everyone is looking for the secret to becoming a better leader. There is no secret, however there are guiding principles and skills that are fundamental to being a successful leader.

Be authentic: trustworthy, reliable, genuine, open and accessible.

Provide the vision, values, and strategies to create sustained success.

Successful leaders have personal and organizational values that govern their behavior.

Creating a Learning Organization will leverage the benefits of collaboration. Shared knowledge earns knowledge in return. And pooled knowledge consistently leads to better outcomes. In the information era, sharing information is important as it leads to understanding and keeps you in the loop of what is happening.

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By: Greg belpomme, business manager for hays civil construction

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eavy Civil General Contractors in the New Jersey market are experiencing a drastic shortage of qualified and tenured construction professionals to join their team to support their projects. In last year’s Hays U.S. Salary Guide, 35% of employers cited salary as the main reason for employees leaving. Additionally, the findings showed that, “Confidence in the U.S. economy remains strong among employers, with more than half predicting continued growth in the next 6 to 12 months.

U.S. industries continue to hire heavily to keep up with booming business, trying to outpace the growing skills shortage that’s resulted from rapid economic expansion.”

Many companies experience a dire need for qualified Heavy Civil General Contractors to join their teams. Some of the reasons include back filling a position where someone recently resigned or retired, adding more to their workforce due to expansion, or hiring additional support to their current team. Hiring managers should keep in mind that when they extend an offer to their selected candidate, the process could be disrupted by counter-offers from their current employer. Ensuring roles are being paid at market rate will help attract quality candidates. Additionally, when filtering through a candidate pool, employers should be mindful of those who are simply “testing the waters” to see what options are out there as they may not be serious about moving jobs.

Hiring activity in the Greater New York and New Jersey Areas 56% of employers increased full-time headcount back in 2018 with half of them citing that they increased salaries by more than 3%.

Over 80% of employers in these areas are still experiencing significant workplace pressure due to a lack of available skilled candidates.

Ongoing recruitment challenges • Ongoing skills shortages remain the #1 challenge for U.S. employers • There is a perception gap around the value of education that is contributing to a multi-industry skills shortage • Many people won’t leave their current role for a ‘like for like’ position. For example, moving to the same position and building the same scope of work for similar compensation, may not be enough incentive for someone to change jobs.

Hays employer advice • Increase investment in upskilling and educating your new and existing employees: Salaries and benefits are an excellent way to

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the challenges of hiring heavy civil experts in the new york & new jersey areas bring new and better skilled employees into your business, but this alone is not enough. In a market crowded with high-paying companies, it’s wiser to stop fighting your competitors for the same stagnant pool of employees and, start training the employees you need. Offer more company-paid training and engage in pre-hire and on-site skills training to make your business self-sufficient.

• Ensure your business has effective training and handover protocols in place: Ensure that your existing skilled employees are given opportunities to mentor other staff. This can be an excellent complement to company-paid educational programs and, ends up saving you time and money. And when skilled staff take leave, retire, or change careers, your handoff protocols need to be firmly in place so you don’t lose their accrued knowledge and leave yourself with a new skills gap.

• Start rethinking your hiring practices to build the skilled workforce you need: Despite the pervasive multi-industry skills shortage, many companies are counterproductively planning only minimal hires. New skilled hires and upskilling existing employees are key to keeping your business healthy, so build effective talent pipelines and nurture your networks. Low quality applications are still the primary result of “advertise and apply” hiring, so it’s time to start proactively seeking better candidates. as As shown in last year’s Hays Salary Guide, “New skilled hires and upskilling existing employees are key to keeping your business healthy, so build effective talent pipelines and nurture your networks. Low quality applications are still the primary result of advertise and apply hiring, so it’s time to start proactively seeking better candidates.” That’s said, when hiring Heavy Civil General Contractors, it is important to explore all avenues available to you when looking for the next talented individual to join your team.

Today, it is common for Heavy Civil General Contracting Professionals to have several other offers due to increased demand and as a result, many employers are putting market leading packages together that offer clear career progression, training, regular reviews and strong benefits to attract the top talent. That said, during your hiring process it is essential to have the facts and figures outlined for your offer, with a strong ‘why join us’ strategy as these elements will help secure your top candidate.

To request your copy of the Hays 2020 Salary Guide featuring the latest hiring trends and compensations insights – contact Greg Belpomme, Business Manager for Hays Civil Construction, Transit & Marine: (347) 352-1692 / greg.belpomme@hays.com

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By: lisa post, bca insurance

Let us first define surety.

Definition: NOUN: surety: a person who takes responsibility for another’s performance of an undertaking IN FINANCE: bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. The person or company providing the promise is also known as a “surety” or as a “guarantor” SURETY BOND: a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principals’ failure to meet the obligation Now here’s the back story.

History: The earliest suretyship contract has been found on a Mesopotamian tablet from 2,750 BC. 80 BC: In the Old Testament of the Bible, Ecclesiasticus 29:1419: “An honest man is surety for his neighbor . . . forget not the friendship of thy surety, for he hath given his life for thee.”

Man has been taking a stand for one another for years. Finally, we codified the intent.

1894: Heard Act: The birth of corporate surety bonds in the United States. Prior to this, a subcontractor or supplier to a governmental contractor had little recourse against the government contractor. This act granted a right of action in the name of the United States against a prime contractor and its surety for unpaid labor and materials used in the execution of the contract.

The Act’s shortcoming was that it was difficult for the courts to determine whether particular labor or materials had a relation to the object of the contract so as to fall within the coverage of the Heard Act. Why was such a need defined? It took from November of 1791 until November 17, 1800 to build the Capitol Building in Washington DC. Numerous contractors were engaged to do the work.

Each time, payments would be made without satisfactory work, thereby defaulting the contractor without recourse to collect funds already distributed to the contractor. These challenges to complete these buildings along with other acts created the need for the Heard Act.

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why is there a need for surety bonds 1935: The Miller Act: This repealed the Heard Act. This is the current Federal Law mandating surety bonds on federal public work requiring performance and payment protection.

Little Miller Acts: almost all 50 states and territories of the U.S. adopted Little Miller Acts to protect the public interest (tax dollars) similarly.

2019: The federal government allocates an estimated $4.5 billion for construction projects and $200 billion in infrastructure initiatives. This is a substantial dollar amount. Governing bodies have the responsibility to monitor the public trust (taxes). By law, contracts are assured by surety bonds for the proper adjudication and completion and payment of subs and suppliers.

Suretyship is a no loss industry. The agent and underwriter assess the construction company’s capabilities through a detailed underwriting process. Through years of actuarial analysis, trends can be identified. These are used to advise contractors and mitigate losses before they happen.

The cost of surety bonds ranges from 4% of the contract amount to much lower. There are numerous factors used to determine the rate of your bonds. Regardless of the rate you qualify for, it is very reasonable when considering the exposure in the event of a loss/default.

For example, a $500,000 contract at the standard Class B rate is $25 per $1,000 of contract price. This equals a premium of $12,500. It would take the full premiums of at least 40 contracts at $500,000 to make up for one contract in default and that does not take into consideration legal and associated costs. The opportunity of being able to work in the bonded market allows for better negotiations with subs and suppliers (they know they have recourse to get paid) along with a silent partner (the surety company) supporting your business.

Surety bonds are a risk abatement tool for the obligee (with whom you have a contract), your subs and suppliers, and you (the contractor). Surety bonds make the process more effective in the event of a default or an issue. The more you understand how surety works, the better able you will be to navigate the surety process.

About the Author...Lisa A Post has over 30 years of experience working with contractors to provide surety for the construction industry. She is currently Director of Surety for BCA Insurance Group, a regional insurance, risk management services and surety broker with offices in New Jersey. Lisa can be reached at 609-953-2663 or lpost@ bca-insurance.com

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By: Dan Neville, director of safety

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he UTCA Safety Committee has been busy in 2019, once again bringing to its members a robust schedule of safety and education seminars throughout the winter.

Over 500 students attended our classes from early January through March. In late February the Annual Safety Conference was blessed to have the nationally renowned keynote speaker Thomas Goeltz deliver a powerful message on distracted driving.

He spoke about his personal experience with distracted driving and focused on raising awareness through education, making distracted driving socially unacceptable, increased law enforcement efforts, and improved legislation on distracted driving in all states.

This year’s Safety Award winners included Carbro Constructors, J. Fletcher Creamer & Son, Creamer Environmental, Crisdel Group, Hillcrest Paving & Excavating, Joseph Jingoli & Son, McPhee Electric, Trevcon Construction and West Bay Construction. The Award for overall Best Safety Record went to Northeast Remsco Construction.

The Safety Committee continues to be heavily involved the New Jersey Work Zone Safety Partnership (NJWZSP) and Director of Safety, Dan Neville is pushing for better communication between uniform traffic control (UTC) and the contracting com-

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2019 Safety and Education update munity. The Safety Committee has asked Dan to lead the charge to improve education for both contactors and UTC. The multiyear process of stakeholder meetings by the Board of Public Utilities to update the Underground Facility's Act regulations also continued throughout 2019. With the support of safety committee members, Dan Neville has been at every meeting fighting for contractors’ interests, and the proposed regulations should be announced in early 2020. The Safety Committee will be ready with comments from the industry and will keep the membership informed as the effort advances.

Contractors: the Safety Seminar Schedule is now available on our website, and we encourage you to begin registering your staff for trainings. The applications for the Safety Awards will be emailed out in early January, we hope your team will join us for international speaker David Sarkus, The Safety Coach® who will give a motivating presentation on Leadership in Safety on March 6, 2020 at the Forsgate Country Club.

Please note the schedule for 2020 Safety and Educational Seminars. Additional seminars will be announced once scheduled.

Online registration is available at www.utcanj.org

January 11

Trenching and Excavation Seminar

January 18

Confined Space Awareness Seminar

January 22

Communication for Leaders in Construction

January 25

ATSSA Flagging Seminar

February 1

Crane Standard, Signaling & Rigging Seminar

February 8

Trenching and Excavation Seminar

February 22

Confined Space Awareness Seminar

March 6

The Annual Safety Conference

Utility & Transportation Contractor | december| 2019 109

Reprinted courtesy of Engineering News-Record, copyright BNP Media, September 23/30, 2019. All rights reserved.

Reprinted courtesy of Engineering News-Record, copyright BNP Media, September 23/30, 2019. All rights reserved.