Utility & Transportation Contractor February 2023

From the desk of: glenn ely

In looking through the list of UTCA 2022 accomplishments that was recently published, I am amply impressed not only with the contractor and associate members who help get things done, but also with the depth and breadth of the work that our staff accomplishes. Our staff clearly is wholly engaged with our members and industry and leads us in excellence in all manner of realms. Thanks to each of them for their hard work and passion for moving issues forward that affect our members!

One realm in which they excel that was largely foreign to me until more recently in my career, is in the political and legislative realm. Growing up on a farm in Pennsylvania, my exposure to government and the processes that move and shape it, had me only understanding it in terms of the actions of those few that were the most visible in government. In recent years when my involvement with industry associations increased and now most notably with the UTCA, I’ve gained a dramatically different perspective on what shapes government and ultimately the power of one voice, particularly when that voice is joined by others of like mind. The UTCA is our industry’s paramount tool that is excellent at joining the voices of many to create a means of appropriately shaping the issues that affect us.

Two really good examples of the outstanding influence that the UTCA has in first bringing voices together and then shaping government and the law, are our Political Action Committee (PAC) and our Legislative Committee. Your contribution to the PAC is vital to equip staff to access and support candidates and politicians who are now or who through UTCA’s education become advocates for legislation and policy that is good for our businesses and industry. With that access, combined with our great staff, we are routinely put in the position of educator and influencer on our important issues.

The UTCA’s Legislative Committee and staff are likewise expert in first monitoring legislation that is progressing either in the NJ state Legislature or the federal congress. Secondly, they are quick to put such proposed legislation

in front of committee members and the people within the UTCA who are expert in that area and who have important input on that critical issue. Then and most importantly, with the input of those members, they shape responses that set that legislation on courses that are consistent with the goals and expectations of our association and members. And the legislators listen when the UTCA staff and voices speak! This last impact is most amazing for a country boy like me to fathom and even participate in. The UTCA continues to develop, advocate for, and produce wins for our industry in the political/legislative realm.

With that backdrop, I want to again encourage you to engage within the political and legislative processes at the UTCA. Be a voice, give input when asked, contribute as you can to the PAC, and ultimately play a role in shaping our construction world.

I want to congratulate Concrete Construction Corporation for achieving seventy years in construction, and also Super Products which has accomplished fifty years in business. Great job!

While you are enjoying this issue, think again about how you can plug in to the political/legislative process and join your voice with others within the UTCA to move our state ever forward.

Glenn Ely

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Pictured on the cover:

Standing left to right: Teresa Ficca, Charlie Woznick, Dave Burns, Eric Erler

Seated left to right: Charlie Dandeneau, Joe Farrell

Published Bimonthly During 2023

Publisher: Robert A. Briant, Jr.

Editor: Helene Nasdeo

Editorial Contributors: Dan Kennedy, Ryan Sharpe, Dan Neville

Advertising Manager: Helene Nasdeo

Production/Graphics: Lauren Hagan, Helene Nasdeo

Circulation: Helene Nasdeo

three steps to value engineer your 401(k) plan

by: michael h. meyers, partner, mountain hill investment partners

Like value engineering a construction project to substitute materials and methods with less costly alternatives, (though not at the expense of quality), a 401(K) plan should be value engineered to ensure it’s the most efficient, cost-effective approach for your employees. For example, you might replace cast-in-place concrete with pre-cast concrete to lower cost but achieve an equivalent or even better product. This is a similar practice to replacing an expensive investment option in your plan with a more cost effective one that has provided equivalent or better performance over time.

The six phases of value engineering: information gathering, functional analysis, creativity and innovation, evaluation, development, and presentation can all be applied when analyzing a 401(K) plan. You incorporate this in your projects to achieve a better result, enhance your reputation, and promote new business with your firm; you should be doing the same with the 401(k)-benefit offered to your employees.

Benchmark Your Recordkeeper:

At its most basic, a recordkeeper keeps track of employee funds in a 401(K) plan, think of firms like Fidelity, Empower, Charles Schwab, and Ascensus. According to the 2022 PLANSPONSOR recordkeeping survey, they collectively provide administrative services for over $10 trillion in defined contribution assets with more plans starting every year. This asset growth is happening while the recordkeeping marketplace itself is consolidating; in the past 10 years the number of retirement plan recordkeepers has dropped from about 400 to just over 150.

The Department of Labor emphasizes the practice of benchmarking your recordkeeper; it is meant to create a formalized procedure that plan sponsors can follow to make sure their plans meet current fiduciary requirements, as well as to insure they are in line with current industry trends on pricing and services. Best practices suggest that plan sponsors should formally benchmark their recordkeeper every three to five years, although our experience is that many haven’t been through the process since the start of their plan. This isn’t to suggest that plan sponsors need to change recordkeepers each time; according to the survey mentioned earlier, most plan sponsors (61%) have been with the same one for over eight years. However, it is important and can help identify fees that are excessive of market rates or service that is lacking. Like value engineering, we’re not looking to simply cut

costs during this process, we want to evaluate the needs of the plan and compare the current costs to those offered by similar players in the space.

Engage an advisor to vet several different service providers. Let them have the meetings with sales teams and collect pricing, service, and technology information that they can then present to you in full. Following the presentation, select the top two candidates and coordinate a meeting with all parties. This has worked well in my experience; plan sponsors receive a synopsis of all the information from each provider which frees up their time to focus on running the business.

Benchmark Your Fund Line-Up:

As a plan sponsor, you have a fiduciary responsibility to pay only reasonable 401(K) fees so the investment returns of your employees are not reduced needlessly. Fee compression in mutual funds and exchange traded funds has been a trend for years but not all plan sponsors have been fast to act on the changing landscape. We regularly review plans with bloated revenue sharing arrangements full of 12b-1 fees (I call these hidden fees) and other “indirect fees”. Although these fees are required to be disclosed, they are often buried so deeply they’re difficult to find.

The National Bureau of Economic Research issued a paper in December 2022 (“Mutual Fund Revenue Sharing in 401(K) Plans”) and found, unsurprisingly, that “401(k) plans that utilize mutual fund revenue sharing as a method of paying for recordkeeping fees and other administrative services are more expensive on average, and the higher expense ratios are not offset by lower direct fees or by superior performance.” In other words, this type of arrangement was not in the employee’s best interest.

Hold Your Advisor Accountable:

How often do you meet with your 401(K) advisor to discuss the plan? I think the answer for most is: infrequently. You should expect your advisor to review the overall health of the plan on a regular basis and meet with you quarterly to report on various metrics such as: participation rates, employee savings rates and asset allocation. Your advisor should be easily accessible to employees and take the initiative to provide advice in group and individual settings that is tailored to their needs. Great advisors will continually work to drive participant success, lower fiduciary risk, and reduce fees. As a co-fiduciary, the advisor also shares

in the responsibility to ensure that the plan is compliant with ERISA regulations. Hold your advisor accountable by setting guidelines for the service you expect of them, and make sure their compensation is fair and transparent.

As we begin a new year, make it a priority to value engineer your 401(k) plan. My firm works as an advisor and co-fiduciary to corporate 401(k) plans, specializing in the construction industry. We work with UTCA firms to enhance their 401(k) offering by vetting service providers, lowering costs, and building employee education programs. We appreciate that each company is unique, and we take the time to understand your needs before creating a customized plan that is suitable, low cost, high value, and ERISA compliant.

Contact me, Mike Meyers, at (732) 291-3338 or mikemeyers@mhipartners.com for more information and to schedule a plan review.

Disclaimer:

Mountain Hill Investment Partners is an SEC Registered Investment Adviser. We have a clearing and custody relationship with Fidelity Brokerage Services LLC, Member NYSE/SIPC.

u.s. department of labor's proposed rule changes for independent contractors and the impact on the construction industry

By: nicolas sullivan, esq., florio, perrucci, steinhardt, cappelli, Tipton & Taylor LLC

On October 13, 2022, the United States Department of Labor (“DOL”) published a proposed rule change (“2022 Rule”) in the Federal Register. The 2022 rule was open for public comment until November 28, 2022, extended by the DOL until December 13, 2022. The purpose of the 2022 Rule is to clarify who is defined as an independent contractor under the Fair Labor Standards Act (“FLSA”). The FLSA requirements related to minimum wage, overtime, and recordkeeping apply to employees, but do not apply to independent contractors. The 2022 Rule would rescind the DOL’s 2021 Rule, which heavily weighed the control over the work and the opportunity for profit or loss in determining the status of an independent contractor.

The FLSA defines employer to “include any person acting directly or indirectly in the interest of an employer in relation to an employee.” The FLSA defines “employee” as “any individual employed by an employer.” Employ is defined to include “to suffer or permit to work.” Under the FLSA, employees are entitled to certain benefits, which are not required to be provided to independent contractors. Generally, the FLSA requires covered employers to pay nonexempt employees at least the Federal minimum wage for all hours worked and at least one and one-half times the employee’s regular rate of pay for every hour worked over 40 hours in a workweek. The FLSA requires covered employers to maintain certain records regarding employees and prohibits retaliation against employees who are discharged or discriminated against after taking certain protected actions, such as inquiring about their pay or filing a complaint with DOL.

The FLSA does not require a covered employer to pay Federal minimum wage or provide overtime protections to independent contractors. Although the FLSA does not define independent contractor, “independent contractor” is understood to refer to workers, who as a matter of economic reality, are not economically dependent on their employer for work and are in business for themselves.

In the 2022 Rule, the DOL proposes returning to the historically used totality of the circumstances analysis of the economic reality test and focus on whether the worker is economically dependent on the employer for work versus being in business for themselves. Unlike the DOL’s 2021 Rule, the 2022 Rule would not use predetermined weighing of factors and would require considering the factors comprehensively instead of reviewing the factors as independent and unrelated.

Under the 2022 Rule, an employee would be defined to include any individual whom an employer “suffers, permits, or otherwise employs to work.” This definition is intended to encompass all workers who “as a matter of economic reality, are economically dependent on an employer for work.” An independent contractor is defined only as a worker who, as a matter of economic reality, is in business for themselves. Economic dependence would not focus on the amount of income earned by a worker, or whether that worker has other income streams, but would use a six-factor test to determine whether a worker is economically dependent on the employer under the totality of the circumstances. None of the factors are given a predetermined weight but all such factors are considered as a whole under the 2022 Rule. These six factors are as follows:

1. Whether the worker exercises managerial skill that affects the worker’s economic success or failure in performing the work including examining whether the worker determines or can meaningfully negotiate the charge or pay for the work provided; whether the worker is able to accept or decline jobs; whether the worker chooses the order and/or time in which the jobs are performed and other factors. If a worker has no opportunity for a profit or loss, then this factor suggests the worker is an employer.

2. Whether a worker’s investment is “capital or entrepreneurial in nature.” This factor finds the costs borne by a worker to perform a job, such as tools and equipment, are not capital and entrepre-

neurial, but indicate employee status.

3. Whether a work relationship is indefinite in duration or continuous, which suggest employee status, or whether the relationship is definite in duration, non-exclusive, project-based, or sporadic, which is indicative of independent contractor status.

4. The employer’s control over the performance of the work and economic aspects of the working relations including whether the employer sets the worker’s schedule, supervises the performance of the work, or explicitly limits the worker’s ability to work for others.

5. Whether the work performed is an integral part of the employer’s business. This means whether the function performed by the worker is an integral part of the business including if the work performed is critical, necessary, or central to the employer’s principal business it would weigh in favor of the worker being an employee.

6. Whether the worker uses specialized skills to perform the work and whether those skills contribute to the business initiative.

In addition to the 2022 Rule, employers must also consider the New Jersey ABC Test under the Unemployment Compensation Law. Under the ABC Test, N.J.S.A. 43:21-19(i)(6)(A)-(C), the default is that a worker is considered an employee unless an employer can provide evidence to satisfy the three ABC Test factors to prove the worker is an independent contractor. Failure of an

employer to prove all three factors will result in a worker being classified as an employee. The burden is on the employer to prove a worker is an independent contractor. The three factors under the ABC Test are:

1. The worker has been and will continue to be free from control or direction over the performance of such service, both under his or her contract of service and in fact; and

2. The service is either outside the usual course of the business for which such service is performed, or that such service is performed outside of all the places of business of the enterprise for which such serve is performed; and

3. The worker is customarily engaged in an independently established trade, occupation, profession, or business.

The 2022 Rule has yet to go into effect. However, based on the language of the 2022 Rule, as currently proposed, and the ABC Test, it could soon be more difficult for employers to classify workers as independent contractors in New Jersey. It is recommended that employers begin to take steps to review the status of their workers and determine if the enactment of the 2022 Rule will have any impact on the employer and its business.

Nicholas A. Sullivan, Esq., is an Associate in the Cherry Hill office of Florio, Perrucci, Steinhardt, Cappelli, Tipton and Taylor, LLC. He may be contacted at nsullivan@floriolaw.com

as federal initiatives keep moving construction forward in 2023, keep a careful eye on compliance

By: jack callahan, cpa

Iwant to start off thanking the amazing staff at UTCA for the support they provide to their members. It is always a pleasure working with them to advance the efforts of the New Jersey construction industry. Each year I utilize this forum to provide my insights into what the coming year might hold and provide guidance on how to prepare your accounting and tax teams to face the challenges ahead.

The past three years have certainly been unprecedented. The pandemic brought challenges none of us had faced or prepared for. The fact that you are reading this indicates that you have survived the challenges and, in some cases, have thrived. Not surprisingly, the results are very uneven, with certain segments and contractors doing very well while others struggle with consistent backlog and reliable workflow.

As we begin 2023, the construction industry as a whole is seeing the largest backlog ever recorded. As UTCA and other advocacy groups continue to report, all agencies have increased funding, and the commitment is to award larger work programs than ever. N.J. still retains substantial unspent CARES Act and American Rescue Plan funds that have now been supported with funding from the Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA). How effectively and efficiently those funds turn into construction starts will be the key to a successful 2023.

Tempering the positives of large funding mechanisms are the inflationary concerns that continue to drive up construction costs. These are further exacerbated by supply chain challenges that will likely worsen with increasing “Buy America” requirements. Contractors will need to be very aware of where the work programs will be focused and make sure that their organization is aligned with the opportunities that will be funded. This will include traditional road, bridge, and sewer work, but will also encompass broadband, airports, alternative energy, and waterfront resiliency projects.

Maintain careful compliance: 3 areas to watch

When I reflect on how we have collectively survived these past few years, I am reminded of a 1986 quote from President Ronald Reagan: “The nine most terrifying words in the English language are, ‘I’m from the government, and I’m here to help.’” That’s not to say not to trust the government; I just think it fits to highlight that as a whole, the construction industry is becoming

more complex to navigate, given the compounding regulations and opportunities legislation is creating. Contractors must be their own advocate in terms of keeping on top of what is available to them and what they must do to remain compliant.

Since March of 2020, contractors have been the recipients of some of the largest public assistance programs ever endeavored:

• Paycheck Protection Program (PPP) Loans

• Employee Retention Credit (ERC)

• CARES Act

• American Rescue Plan Act

• IIJA

• IRA

While all these programs have provided direct or indirect benefits, they all come with an increased level of risk in federal and state oversight that contractors must be aware of and build a system of compliance measures to address. I will set forth below my observations and concerns.

PPP loans

Many UTCA member firms benefited from Paycheck Protection Program (PPP) loans and have received subsequent forgiveness from the Small Business Administration. While there is an inclination to deem these loans as closed, I continue to have concerns about what I am seeing as increased audit concerns around these loans. On Aug. 5, President Biden signed the PPP and Bank Fraud Enforcement Harmonization Act of 2022, which established a 10-year statute of limitations for criminal charges and civil enforcement against a borrower who engages in fraud with respect to a PPP loan. The headlines are full of reported fraud, and the title of this Act makes clear that a great deal of fraud occurred. I spoke with multiple bankers over the holidays, and it was clear that the SBA is beginning to expand audits of these previously forgiven loans.

While loans have conditionally been forgiven by the banks, we have experienced the SBA coming back to loan recipients to have them validate their Maximum Loan Amount that they received. The Paycheck Protection Program implementation was fast and furious, with very little guidance given to both the banks and the recipients on how to properly compute the Maximum Loan Amounts. Many unintentional mistakes were made during the application and disbursement phases, leading to some recipients receiving excess loan funds. This has resulted in either unintended loans or recipients choosing to return the excess funds.

With all this in mind, it would be wise to think carefully about document retention when it comes to all the supporting documents for your PPP claim. Records of how these funds were utilized and how your company was impacted will be critical to retain. We have seen federal agencies come back 8-10 years later, requesting specific information provided for the original loan. Given the fact that construction was one of the top industries to receive PPP loans, we can expect our share of audits.

Employee Retention Credit (ERC)

None of us can get into our car without hearing multiple ads for employee retention credit (ERC) refunds. We can’t avoid the ads, and neither will the IRS and other enforcement agencies. While the receipt of PPP loans required an application with a bank and review by the SBA, contractors were able to claim the ERC up front without approval. However, they are subject to audit, and the American Rescue Plan Act extended that audit period to five years. So, especially with the massive increase in funding provided for the IRS in the IRA, there is always the possibility of an IRS audit of an employer’s ERC’s. Claiming the ERC and supporting the legitimacy later involves far more than just number-crunching. Employers must navigate a complex web of guidelines including qualified wages, employer size, partial suspension of work, “more than nominal impact,” and more, plus meet documentation requirements. As you can see, there is an element of subjectivity. Be sure to maintain clear and detailed documentation and retain it for five years.

Impact of federal grants funding large NJ construction contracts

The Biden administration has allocated a great deal of funding through the various impetus packages, including the CARES Act, American Rescue Plan Act, IIJA, and IRA. These federal funds will be distributed to the State of NJ by way of federal grants. A federal fact sheet says that New Jersey is expected to receive:

• $8.1 billion over five years in federal funding for highways and bridges

• At least $100 million to help ensure high-speed internet

• $168 million to provide clean and safe water

• $4.5 billion over five years to improve public transportation

• Additional funding will be available for electric charging stations, airports, clean energy and power, resilience, and legacy pollution clean-up.

Federal and state agencies awarding contracts and grants will subject awardees to a long list of federal compliance requirements. Federal awardees are subject to Davis-Bacon provisions, “Buy America” requirements, federal diversity and inclusion requirements, and certain compliance issues such as cybersecurity. The time is now to familiarize yourself with the federal compliance provisions and terms like FAR (Federal Acquisition Regulation) and CAS (Cost Accounting Standards). It may not be clear in the bid documents, but you can be assured that when the government auditors come out to the project, they will be looking to confirm that compliance measures are in place. Review the contract and grant compliance requirements now and assess how they will apply to the awards you will look to pursue.

In conclusion

2023 should prove to be another year of challenges and opportunities. Take some time now to revisit where your company has been – the people, processes, and products you have put in place to weather the last three years – and assess what you will need as we move forward.

All the best for a successful 2023.

About The Author. . .With more than 35 years of experience, Jack Callahan serves as CohnReznick's Construction Industry Leader overseeing a team of 200 professionals across the United States. He has served as a trusted advisor to contractors throughout their entire lifecycle demonstrating exemplary client satisfaction building a reputation as a results-oriented leader dedicated to driving company growth and transformation. Jack and his team have worked extensively with both private developers and public agencies to develop and implement fiscal and integrity monitoring programs to successfully mitigate the costs of fraud, waste, and abuse on large development projects. Jack was the lead partner for CohnReznick on the monitoring and investigative work performed at Ground Zero and continues to spearhead the ongoing initiatives at LaGuardia and O’Hare airports. Jack has extensive knowledge, insights, and experience in accounting, corporate taxation, and business consulting matters within the construction community and values his well-earned role as trusted business advisor.

Investment In Infrastructure Continues Amid Political Turmoil

By: ryan sharpe, director of government affairs and communications

After years of neglecting our crumbling infrastructure, both our federal and state governments are continuing to make massive Investments in our transportation and water infrastructure, highlighted by the enactment of a 2023 federal budget which increases transportation spending by $3.4 billion over last year and delivers more than $1.7 billion for enhancing water infrastructure.

The $1.7 trillion spending plan that was signed into law late last year increases spending for highways by $2.3 billion, boosts funding for mass transit by $704 million and provides an additional $5 million for airports which is nearly triple the amount allocated two years ago. Additionally, the budget plan appropriates $2.7 billion for water infrastructure which is on top of the $5.25 billion allocated for water in the Infrastructure Investment and Jobs Act (IIJA).

Speaking of the IIJA, at the end of last year it was announced that funds from the IIJA will be used to provide a $292 million federal

pay for about half of the $600 million cost to build a concrete tunnel casing to carry trains on the Manhattan side of the river.

Infrastructure funding also continues to be at the forefront in the State Legislature. In the past few months, the Legislature approved the allocation of over $2 billion in loans for water infrastructure projects and approved the Fiscal Year 2023 Financial Plan for the New Jersey Infrastructure Bank (I-Bank).

Another measure that cleared a Senate Committee in December would create the Community Hazard Assistance Mitigation Program (CHAMP) to fund resiliency and hazard mitigation projects through the I-Bank. The legislation also includes a $500,000 appropriation to set up the program.

In addition, legislation supported by UTCA to extend the eligibility period for contractors to seek reimbursement for unprecedented material cost escalation continues to advance. Under S-2909/A-4792, certain New Jersey Department of Transportation (DOT) projects bid before December 1, 2021 would be eligible for reimbursement.

Under current law, the program only covers contracts for which bids were submitted by April 1, 2020 which excludes the period in which material cost increases were most acute. While the program is only open to Small Business Enterprises (SBE’s) and applies to DOT contracts, UTCA is currently working with lawmakers to craft legislation that expands cost escalation to more contractors and additional project owners.

The past few months also saw the proposed expansion of the New Jersey Turnpike Hudson County Extension making news again with stakeholders lining up both for and against the plan to widen the number of lanes between Turnpike exits 14 and 14A, replace the Newark Bay Bridge, and create a three-lane road in both directions between exit 14A and Columbus Drive in Jersey City.

grant to help pay for the first major step in the construction of a new rail tunnel under the Hudson River. The new rail tunnel is part of the $30 billion Gateway Program to rebuild and rehabilitate the rail infrastructure along the Northeast Corridor between New Jersey and New York City. Gateway is designed to increase capacity for the most heavily used passenger line in the country with work expected to continue into the 2030’s. The grant will

Despite opposition from environmental activists and local politicians, Governor Murphy has not backed down from supporting the project which he has said is needed. In addition, State Senator Brian Stack, who is also a Hudson County mayor, joined the UTCA, labor organizations and many other groups in supporting this proposal which is vital to the state and region’s economy and quality of life.

Another positive development coming from Trenton was the Governor’s decision to pull back from his mandate that would have required schools, apartment buildings, and commercial, industrial and manufacturing facilities to convert their gas boilers to electricity by 2025.

UTCA was a part of a diverse coalition of labor and business organizations that successfully opposed this costly mandate that would have dramatically increased the cost of heating and resulted in higher property taxes. The plan, which was a part of Gov. Murphy’s larger plan to transition to 100% clean energy by 2050, was withdrawn by the New Jersey Department of Environmental Protection in December.

On the political front, the Republicans took control of the House of Representatives despite a lackluster showing in the fall elections. The Senate remains under Democratic control and indications are that President Biden, who recently turned 80, will seek re-election to a second term next year. However, several prominent Democrats have been jockeying to line up support in the event he chooses not to run. Potential candidates include Governor Phil Murphy, New Jersey’s U.S. Senator, Cory Booker, Vice-President Kamala Harris and U.S. Transportation Secretary Pete Buttigieg.

On the Republican side, Former President Donald Trump has already declared his intentions to seek a return to the White House while other Republicans that could run include Florida Gover-

nor Ron DeSantis, former Vice-President, Mike Pence, and former Ambassador and South Carolina Governor, Nikki Haley.

In New Jersey, both the State Senate and Assembly are up for election this year in new districts that were created by the redrawing of legislative boundaries that took place last year. The new legislative map will likely result in the re-election of most incumbents but has created a path for the Republicans to take control of one or both houses of the Legislature for the first time in decades.

In addition, the race to replace the term-limited Gov. Murphy continues to heat up with various candidates poised to join 2021 GOP candidate Jack Ciattarelli in the race. In fact, Jersey City Mayor Steve Fulop’s announcement that he won’t seek re-election has been interpreted by many as a sign that he will throw his hat in the ring for Governor in 2025.

The election year positioning in New Jersey and the hyper partisan atmosphere in Washington will continue to play a major role in policy affecting our industry. As such, we will be watching closely and, regardless of which party is in control, we will continue to advocate fiercely on issues that will impact on our members and the infrastructure construction industry.

Constructors For Good Government 2023

Contributors

President's Club

George Harms Construction

Montana Construction

PKF Mark III

Union Paving & Construction

Governor's Level

Black Rock Enterprises

Schifano Construction

Ambassador Level

R.E. Pierson Const.

Traffic Lines

Zone Striping

Leadership Level

Anselmi & DeCicco

B. Anthony Construction

Dewcon

HBC Company

Haines & Kibblehouse

Skoda Contracting

Platinum Level

Creamer Environmental

GMP Contracting

Hoffman Equipment

Lehigh Utility Associates

New Prince Concrete Construction

Gold Level

Brent Material Company

CATS Sweeping

CLB Partners

CRS Contractors

MECO Inc.

Ritacco Construction

SJA Construction

UC Management

Silver Level

Perna Finnigan

Taylor Oil Company

Trench Technologies

Trevcon Construction

Winzinger Inc.

Zack Painting

Bronze Level

Arawak Paving

Edward H. Cray Inc.

J.C. MacElroy Co., Inc.

Walters Marine Construction

If your firm is interested in donating to CFGG, please visit www.utcanj.org or contact Dave Rible at (732) 292-4300 or dave@utcanj.org

concrete construction a family affair for 70 years

By: ryan sharpe, director of government affairs and communications

70 years ago, a gallon of gas would set you back 27 cents, the first Mr. Potato Head doll was purchased, and Singin’ in the Rain premiered at Radio City Music Hall. These historic footnotes help illustrate how distant 1952 is from 2023 but also demonstrate the incredible longevity of Concrete Construction Corporation which is celebrating its 70th year in operation.

While this milestone is quite an achievement, even more remarkable is that, throughout that time, the company has been under the direction of a member of the Zoccoli family. In fact, when talking to COO Joe Farrell and his nephew, Charlie Dandeneau, who is also the company’s president, the word family permeates every aspect of Concrete Construction during its seven decades of operation.

Incorporated in 1952, Concrete Construction was by founded by James Zoccoli with a trailer at a construction yard in South Hackensack before moving to its current location in nearby Hackensack. James was no stranger to hard work before starting the business. In fact, as the story goes, as a teenaged employee

of the area water company, James was tasked with hand-digging trenches for water service lines from homes to the street. He was so adept at this project--digging double the number of trenches as his colleagues--that he was promoted to foreman when he was just 15 years old.

James’ son, Charles joined the company and eventually ran Concrete Construction until Joe took the reins in 2006. Joe, who had worked at the company during the summer, married Charlie’s daughter, Therese, and soon joined his father-in-law in the business. At Concrete Construction, Joe is able to utilize his knowledge and experience he gained working as a Professional Engineer, a skill set that he says helps him in his role as head of a construction company.

As its name implies, Concrete Construction was initially focused on concrete work, with the vast majority of its projects involving curbs and sidewalks as well as “Jersey barriers”--many of which were installed on Routes 78 and 80. His reputation for performing concrete work eventually earned Charles Zoccoli the nickname, “Concrete Charlie”.

In the early years, Concrete Construction was usually a subcontractor, working with larger construction companies, like Schiavone Construction. Soon they expanded the services they offered and now often serve as a general contractor. Now, in addition to curbs and sidewalks, they perform all types of road work, including traffic signals, drainage, sewer, and electric, as well as earthworks and other site work.

Over these many years, Concrete Construction has worked on a wide variety of projects in the construction field. In the early 90’s they oversaw the redevelopment of the property that is now

Passaic County DPW, Wayne

Squirrelwood Rd., Woodland Park

home to the Costco on River Road in Hackensack. This project presented a number of challenges, not the least of which was the relocation of leaking oil tanks which required significant soil testing and the utilization of “bio-remediation” in which microorganisms are added to the soil to break down the pollutants.

Other notable projects include the Essex County Airport where they constructed hangars and installed the apron, which is the area where the aircraft are parked, loaded and unloaded, and maintained. They also played a vital role in the rapid expansion of Commerce Bank, constructing 18 branches and often completing a new branch in less than six weeks. They point out that the company was growing so quickly that. on one occasion, a hot dog cart for the grand opening celebration was wheeled onto the site while they were still striping the parking lot.

Like others in the industry Concrete Construction has continually adapted to the changing needs of the construction market and recently have seen significant work in the warehouse sector. Other projects they have completed include culverts, dams, sew-

age plants and parking garages as well as parking lot expansions at Verizon in Basking Ridge and Piscataway and the development of multiple warehouse sites in Carteret.

Joe says their commitment to adapting to the changing nature of the industry is represented on a gift he received from a former employee. The gift, a small traffic cone, is inscribed with the phrase, “The Road to Success is Always Under Construction.”

When asked to explain the reasons for their long record of success in the industry. Joe and Charlie point to their employees and the fact that they remain a family-owned business. A union shop, Concrete Construction is a signatory with the Operating Engineers 825 and the Laborers’ 472. In addition to their labor partners, they note that the vast majority of their staff have been with the company for many years, with several surpassing 20 years. This significant experience provides them with invaluable knowledge of all aspects of a construction project.

They proudly point out that the reasons most employees stay with the company, is that they are truly considered family, noting they know their spouses’ names, their children’s names and even know what they like to do in their spare time. They also demonstrate their commitment to their staff through activities like a company camping trip in which the employees and their families camp out in upstate New York. They also host Christmas parties, Octoberfest celebrations and other social events throughout the year. Another unique perk at Concrete Construction is that every employee is given a turkey at Thanksgiving.

Joe and Charlie say this positive relationship benefits the employee and the business. They also attribute much of their success to being a family-owned company where staff doesn’t view their work as “just a job”.

“They know that we truly care about them and they truly care about the company,” said Charlie.

Passaic County DPW, Wayne

Marshall Hill Rd. Culvert, West Milford

NJ Fireman's Home, Boonton

When asked about challenges facing Concrete Construction, they both cite difficulties acquiring materials and cost increases in both fuel and materials. To help combat these supply chain disruptions, in September of 2021, Joe created a Facebook page, NJ Contractor Exchange. where contractors can buy, sell, trade, and exchange materials or services.

“I know if I’m looking for that one piece of pipe, odds are another contractor has it in their yard,” he said.

However, they have been able to adapt to these conditions and feel many of the supply chain issues have decreased recently.

Like many others in the construction field, Joe and Charlie both say they have a difficult time getting away from the job for significant time. However, during their limited time away from work, Joe squeezes in some golf and fishing while Charlie races his Ultima sports car which is a Le Mans prototype that can reach speeds of up to 160 miles per hour.

As for the future of Concrete Construction, Joe and Charlie say they plan to maintain the scope of work they perform and are optimistic that the company will continue its steady growth. After more than 30 years at the company, Joe is beginning to reduce some of his workload and spend more time in South Carolina

while Charlie is preparing to take the reins as the fourth generation of the Zoccoli family to take the helm at the company.

After working at Concrete Construction throughout high school, Charlie continued with the company through college and came on board full-time right after college. These days, he is spending more time in the office as he gets ready for his new role. Noting that he has always worked in the field, he now spends mornings and evenings in the office and the rest of the day on the job sites.

Fortunately for Charlie his Uncle Joe is still around, imparting the wisdom gained over three decades at the company, including Charles Zoccoli’s advice to “always keep Concrete Construction in the family. As the “The Mother Ship” it will always keep the family together.”

Clearly, they take the word family to heart at Concrete Construction and that has helped drive their incredible seven decades of success in the construction industry. We are proud to congratulate Concrete Construction on their 70th Anniversary and we look forward to watching this remarkable company continue its success for many years to come.

automated speed cameras in work zones may be coming to new jersey, but is now the right time?

By: othiamba n. lovelace, esq.

One of the biggest concerns our clients in the construction industry deal with on a daily basis is ensuring that their employees are safe and protected from dangerous hazards while performing their duties. Although our clients try their best to protect their employees from work zone dangers, it is nearly impossible to prevent employees that work on major highways from being in close proximity to speeding vehicles that are often being driven by distracted drivers. To protect the lives of their employees, our clients routinely work with the State and local police to ensure that there is a visible police presence on their job sites, so that passing drivers will either slow down or get pulled over. However, there are limits to how many drivers one police officer on a major highway can pull over and reprimand when there could be over a thousand cars passing by that police officer each hour.

For example, despite the best efforts of our construction workers and police officers here in New Jersey, in 2018 New Jersey had 2,492 crashes in work zones, with 556 of those crashes resulting in an injury, and six resulting in a fatality. In 2019, New Jersey had 2,248 crashes in work zones, with 501 of those crashes resulting in an injury, and seven resulting in a fatality. In 2020, despite the Covid pandemic causing less travel overall, New Jersey saw nearly twice the number of fatalities from 2018, with 11 fatalities, and 1,772 crashes in work zones, with 403 of those crashes resulting in an injury.

If passed, the Speed Camera Program would create a 36-month pilot program that would apply to the New Jersey Turnpike Authority and South Jersey Transportation Authority. To ensure that the test program runs smoothly, the speed cameras will be installed and operated by trained work zone speed control system operators (“Speed Camera Operators”). These Speed Camera Operators will receive training directly from the manufacturer of the speed camera being used so that they are familiar with how the system works, how to set it up, and how to test it for accuracy. This training will also be certified in writing because the results of the speed cameras will be used in court as proof that a speeding violation has occurred.

As currently drafted, the law would give New Jersey some flexibility as to how the speed cameras will work, but they all must be capable of producing recorded images of motor vehicles traveling at speeds typically travelled on New Jersey’s major highways. Also, in an effort to prevent surprise and confusion amongst motorist, the law would require the New Jersey Department of Transportation to conduct a public information and education campaign to educate drivers about the pilot program’s photographic enforcement of active work zone speed limits and to encourage drivers to strictly obey speed limits in road construction work zones, facilitating the flow of traffic and protecting the safety and well-being of motor vehicle occupants, pedestrians, and workers.

The proposed law will likely prove to be a strong deterrent for drivers that habitually speed in construction work zones because the penalties escalate for repeat offenders. Specifically, drivers caught speeding one time will get a written warning in the mail. The second offense will result in a $100 fine and third and subsequent offenses will result in a $200 fine. Commuters that pass work zones on a daily basis will have to seriously consider slowing down near work zones, unless they want to see their daily travel costs increase by $200 to $400 per day.

75% of the funds received through the Speed Camera Program will go to the Division of State Police, and about half of that money will be used for recruiting, training, and/or equipping State Troopers working in the construction unit of the police department. The other half of the funds will go to increasing the presence of State Troopers in construction work zones.

As a result of these disturbing and alarming statistics, a legislator is drafting a new law that would establish a test program that would allow police officers and other authorized work zone speed control system operators to install automated speed enforcement systems to issue tickets to speeding drivers (the “Speed Camera Program”). According to the proposed law, the purpose of the Speed Camera Program is to ensure that the men and women who maintain New Jersey’s highways get the opportunity to work in a safe environment.

It’s clear based on the proposed legislation that the goal of New Jersey’s lawmakers is to make our roads safer. The initial feedback our office has been hearing from our sources in the construction industry has been positive, especially since nearby States with similar programs have seen a decrease in speeding near work zones since implementing their speed camera programs.

For example, Maryland implemented a similar program in 2010, and quickly reported that driver speeds in works zones decrease by 10%. Maryland also had a 59% drop in the likelihood of drivers going more than 10 mph over the speed limit on its roads. In 2019, Maryland’s 16 speed enforcement cameras issued 314,477 tickets, allowing it to collect $12,579,080 from speeding drivers.

New York’s Governor also signed a bill in September of 2021, authorizing the use of speed cameras in work zones. In that bill, New York’s lawmakers noted that there were 3,450 accidents in work zones on highways between 2010 and 2016, 50 people died, and over 1,100 workers and motorists were hurt. As such, New York has now taken steps to protect its construction workers and it is refreshing to see that New Jersey’s legislators have taken notice.

Finding new and innovative ways to protect our construction workers should continue to be a focus for our political leaders moving forward, even though programs like this are not always greeted with open arms. Notably, when a similar speed camera program started in Pennsylvania in 2020, the local news in Shrewsbury reported that The National Motorists Association disfavored speed cameras as a predatory practice. A spokesperson for the National Motorists Association was quoted at the time expressing concerns that the program was not a necessity because Pennsylvania had only averaged

one construction road worker fatality every 2.14 years since 1970. While it is unclear how the Speed Camera Program will be received in New Jersey if implemented, troubling data from the United States Occupational Safety and Health Administration’s (“OSHA”) website indicates that programs like this are needed throughout our country right now. Each year more than 100 workers are killed and over 20,000 are injured in the highway and street construction industry.

Accordingly, if you are in the highway and street construction industry and you want to see your New Jersey roads safer for your employees, you should reach out to your local political leaders and let them know that you are in favor of the Speed Camera Program. You can also contact groups like the Utility & Transportation Contractors Association to help you voice your support or concerns about the proposed legislation. Hopefully, 2023 will be a year where New Jersey takes significant steps towards protecting the safety of our highway workers and the Speed Camera Program could be the first step towards that goal.

If you have any questions about the topics raised herein or about any other labor relations matter, please do not hesitate to contact the attorneys at Tobia & Lovelace Esqs., LLC at 973-746-6000 for further information.

super products celebrates 50th anniversary

By: Hollyann schultz, marketing

Super Products LLC, a leading manufacturer of vacuum trucks, is celebrating its 50th anniversary. "We have achieved this major milestone through hard work and dedication. For the past 50 years, we have continued to dedicate ourselves to product innovation and manufacturing efficiencies to provide our customers with high quality equipment and customer service. We are excited to celebrate our proud history and promising future this year,” remarked Randy Buening, President.

Over the past 50 years, Super Products has grown from a small manufacturing company to a nationally recognized supplier of vacuum trucks. While Super Products was founded at the end of 1972 by Lionel Moore, David Zweck, Charles O’Brien and Tom Flynn, the first Supersucker® Industrial Vacuum Loader was manufactured in 1973, followed by the Camel® Combination Sewer Cleaner in 1976. The company quickly earned a solid reputation for developing innovative and efficient equipment and gained recognition through municipal and industrial markets. In 1981, Super Products was sold to Inductotherm, followed by Specialized Industries LP in 2005, before being acquired by Alamo Group in 2014.

Today, the company produces five different vacuum truck product lines and employs over 180 hardworking men and women across the country. Super Products is currently headquartered in Mukwonago, Wisconsin, and has a broad network of sales representatives supporting contractors, dealers supporting municipalities and, after expanding into the rental market in 2011, nine rental facilities supporting short- and long-term rentals, parts and service.

Efficient & Progressive Vacuum Trucks

Whether clearing debris, cleaning a sewer line or excavating underground utilities, operators require equipment that is going to get the job done efficiently and safely. Super Products has always been at the cutting edge of vacuum truck development featuring advanced technology and customized solutions driven by customer needs. Innovation is at the forefront of everything Super Products does. All units are engineered for a wide variety of applications and designed with the operator in mind while being recognized for high quality, innovation and ease of operation.

Super Products gives contractors and municipalities access to the industry’s most efficient and progressive vacuum excavators, combination sewer cleaners, industrial vacuum loaders, truck-mounted jetters and liquid vacuum trucks on the market today.

Mud Dog® Vacuum Excavators are designed to meet the challenges of compact, urban projects to large-scale excavation projects. There are more than 100 billion feet of underground utilities located in northern America. In the U.S. alone, a utility line is hit every six minutes causing power and utility disruption, injuries and even death. Compared to abrasive, traditional machinery,

vacuum excavators offer a safer, smarter and more precise digging method. Due to the precision and non-destructive nature of utilizing compressed air or pressurized water, underground utilities can be uncovered efficiently and safely.

Camel® Max Series Combination Sewer Cleaners are the most versatile combo units in the industry, tackling various applications with jetting, vacuuming and excavating. Most citizens are

The original Supersucker® Industrial Vacuum at work.

communications specialist - super products

Super Products' service centers at each rental facility are capable of maintenance, repairs and refurbishments.

unaware of what goes on above and beneath the surface of their cities, streets and even homes when it comes to wastewater and stormwater. Maintaining those systems is essential to the health and safety of a community. Whether addressing emergency situations or performing preventative maintenance such as routine cleaning, municipalities and contractors depend on equipment that is reliable and efficient.

SuperJet® Truck Mounted Jetters are designed to blast debris with the industry's strongest and smoothest single piston water pump. Built to handle year-round sewer maintenance in residential and municipal areas, the SuperJet breaks up blockages, flushes out debris, clears manholes and scours sewer lines clean.

Supersucker® Industrial Vacuum Loaders offer an ideal solution for waste removal and bulk material recovery, even in hard-toreach areas. Using high-power airflow, the Supersucker quickly removes dust, debris and particles and leaves the jobsite safe and spotless.

Rentals, Parts & Service Support

Since expanding into the rental market in 2011, Super Products has nine rental facilities located nationwide. Staff is available around the clock to support rental, parts and service needs. Parts are stocked at each rental facility, as well as its Wisconsin distribution center, and can be shipped anywhere in the country for next-day delivery. To ensure ordering parts is easily accessible for customers, Super Products launched its e-commerce site in 2022. Service centers at each facility are capable of preventative maintenance, repairs and full refurbishments on all makes and models of heavy-duty vacuum trucks, not just Super Products equipment. Whether it is a small job or a complex repair, Super Products is there to minimize downtime and get trucks back up and running.

Promising Future

Durasucker® Liquid Vacuum Trucks are DOT certified to collect and transport hazardous and nonhazardous waste. For hazardous waste or oil spills, liquid vacuum trucks are essential to quickly collect and store materials to prevent contamination or entrance to local waterways.

While the company is proud of its accomplishments over the past 50 years, Super Products will continue to focus on its vision of growth, innovation and customer satisfaction for the future. “We are proud of what Super Products has accomplished over the past 50 years, but we are not finished. We are committed to growing our footprint in the market, adding new offerings and product innovation. We will continue to be a solution provider for our customers. ” said Buening.

Super Products is currently headquartered in Mukwonago, WI.

Super Products' produces five differnt vacuum truck product lines today.

supporting and accelerating infrastructure projects

By: dan kennedy, senior director

UTCA envisions creating a positive impact on New Jersey citizens, the health of the environment and our shared economic prosperity by leveraging its respected expertise and relationships to promote a sustainable infrastructure sector. This vision can only be met if construction projects are designed, permitted, bid and constructed at a reasonable pace. Delays in governmental processes related to infrastructure have long been a source of contention with construction trade associations and labor unions. Archaic standards and the lack of available government employees is a key part of the story related to delays in approvals. Without approvals, there is no work. With no work there is no progress.

This is why UTCA’s strategic goal of “Supporting and Accelerating the Work” may be our most critical priority. We advocate for legislation, policies, regulations & specifications that accelerate the project pipeline and bring more projects to construction in a timely manner. We know that funding sitting in a federal or state agency account for years does nothing for our members or the public at large.

Delays are not only aggravating, but costly. Quicker government approvals mean that we stay ahead of inflation and make good on the promise of having infrastructure projects stimulate increased work hours and community economic development. A more ex-

Building from Precedent - Licensed Site Remediation Program

Faced with the challenge of a massive list of contaminated sites that were not being cleaned up in a timely manner, in 2009 the Site Remediation Reform Act ("SRRA") was signed into law. The Governor, the Legislature and the NJDEP at the time worked to develop this legislation that dramatically altered the process for conducting environmental investigations and cleanups. There was a clear acknowledgement that the governmental approval process was a large barrier in getting sites cleaned up.

SRRA established a licensing program for Site Remediation Professionals ("LSRP’s") who have responsibility for oversight of environmental investigation and cleanups. There are essentially licensed engineers and environmental professionals in the private sector. The NJDEP continues to have final authority over the clean-up process by requiring that remediating parties comply with applicable regulations, but the day-to-day management of cleanups is overseen by LSRP’s. This is all done while maintaining the protection of public health and safety and the environment.

The LSRP program has led to many more site clean ups and has brought many previously “dirty” sites back into productive uses. This program is a great model of what is possible when government leaders show courage and acknowledge challenges that cannot be met with current government resources and choose a different path. As increased federal funding comes to New Jersey, UTCA and our partners will be pushing for additional state and local governmental reforms in the same spirit.

NJ Infrastructure Bank – Outside Engineers

peditious process will also bring the community / environmental benefits that infrastructure projects deliver faster. Delays in approvals delay all these benefits to communities, commuters, taxpayers, and utility ratepayers.

With an active project list in the billions of dollars, last year at the urging of UTCA, the NJ Infrastructure Bank published a Request for Qualifications (“RFQ”) to prequalify a pool of engineering consulting services firms to provide consulting environmental and engineering services, engineering design review and construction management services necessary for the review and approval of applications, construction design, requisitions and site inspections of projects anticipated to be financed through the “Water Bank.”

From the pool of qualified engineers, late last year, 20 active projects were approved by the NJ Infrastructure Bank Board for outside engineering services to complement / supplement DEP staff review. The goal is to get critical water infrastructure projects out to bid and constructed faster. More projects will proceed through this track moving forward, once lessons are learned from this initial batch of reviews. Credit to NJDEP Commissioner LaTourette and Infrastructure Bank Executive Director David Zimmer for supporting this critical reform.

Local Inspections Under the State Uniform Construction Code

A recent amendment to the New Jersey Uniform Construction Code (UCC) Act permits contractors to bypass unresponsive and slow public inspectors. This law passed with unanimous support in one of the last voting session last year. At the bill signing in January, Governor Murphy said “As both builders and homeowners can tell you, time is money, and more time in construction means less-affordable homes.” We agree with the Governor. We hope this opens the door for further reforms.

While most large infrastructure projects are not covered by the UCC, infrastructure projects that involve buildings (for example, lead service line replacement projects) are at times held up by slow inspections. The alternative created by the amendment may provide important relief during critical construction activities. UTCA Associate Member Trif & Modugno LLC summarized the law in their legislative bulletin the following way:

“Under the Amendment to the Act, any party in charge of the work is permitted to notify the public inspectors that certain work is ready for inspection. The notice must be in writing and at least 24 hours from the date of the requested inspection. The public inspectors are required to perform the inspection within three business days of the date the inspection is required. If it is unable to comply with its inspection obligations and alternative accommodations cannot be negotiated, the party in charge of the work is free to contract with an authorized private on-site inspection agent to conduct the inspection. The Amendment provides a meaningful alternative to owners, developers and contractors racing to meet deadlines during critical construction activities.”

TheAt the bill signing, state officials repeatedly stressed the move to allow private inspections would not slacken safety standards. We agree. This is not about cutting corners with codes and standards. It’s about getting through the process more efficiently. The Department of Community Affairs will oversee compliance with the new rules and is empowered to levy penalties on municipalities that consistently fail to meet the new statutory deadlines. Rule making to enable this new law will be undertaken in the coming months.

We agree with NJBIA’s Ray Cantor who said “Many towns do not have enough construction officials on staff or available to do inspections in a timely manner, and when that happens there are delays in progressing projects. It could be days in some instances, or it could be weeks or months.” The same challenges exist in state government, and we will push forward in the coming years to accelerate more infrastructure work while hoping that the same governmental leaders show courage and acknowledge that the challenges they face cannot be met solely with government employees.

new year means new goals for wellness

By: karen walsh, senior account executive - employee benefits, ioa

Now that we have officially started a New Year, many of your employees are buckling down on their New Year’s resolutions and taking steps to lead a healthier, happier lifestyle. As leaders in the insurance industry, it is our goal to make sure that business leaders have the proper tools and resources to help support their employees on this journey.

In order to provide additional insight on this topic, I have enlisted help from our in-house wellness consultant, Jordan Boudlal, who was willing to provide me with some of his proven methods that can be used by employers to help promote healthier employees, which in turn, can also lead to lower health care costs, less absenteeism, higher productivity, and increased employee engagement. Below are some ideas he shared:

Education

The most effective and successful wellness programs begin with education—both for leadership and employees. Through regular communication, give your employees tips on leading a healthy lifestyle such as maintaining a balanced diet, staying active, and having regular health screenings. Provide information on the negative effects of smoking, obesity, alcohol use, and unhealthy practices that can lead to high blood pressure, high cholesterol, stress, and depression.

Management Participation

Managers and executive leadership should lead by example by exercising and practicing healthy habits. Your employees are watching you, and if they see you taking the stairs instead of the elevator, or grabbing a bottle of water instead of an afternoon dose of caffeine, they may follow your lead!

Appoint Wellness Leaders and Ambassadors

Whether they are on your HR leadership team or individual contributors within your organization that are fired up about health and wellness, it’s key to assign wellness leaders and ambassadors that can support your organization’s wellness goals. If you have an employee that runs marathons in their free time, empower them to start a running club that employees can join. If you have an employee that loves to cook healthy meals, give them the resources they need to share healthy recipes with the rest of your employee population through email newsletters or bulletin posts in your breakroom.

Empower wellness leaders to sponsor training webinars, maintain an online wellness resource center, organize health fairs, and promote local health events within the community, such as 5Ks. When your employee population feels like they have a like-minded support system that can give them tips and encouragement to jump on the path to wellness, they are more likely to stay motivated and involved.

Offer Positive Incentives

Contests, rewards, and incentives are a great way to get your employees engaged in your wellness program. By leveraging people’s competitive

nature, you can foster healthy competition within your employee base. Offer rewards for adopting a healthier lifestyle and provide employee access to assistance for those who may be suffering from unhealthy addictions such as smoking or alcohol abuse.

Prioritize Mental Health

It is a well-known fact that satisfied and happy workers provide better customer service and are more productive each day, leading to a 12% spike in productivity for your business and higher profits, according to a recent study at the University of Warwick. Think beyond diet and exercise and provide your employees with access to counseling and mental health resources to help them combat mental health ailments such as depression and anxiety.

Include Individualization

Use biometric screenings to determine employees' health status and track wellness progress, while maintaining employees' confidentiality. Ensure your employees have access to their individualized health and wellness information so they are aware of their conditions and can take proactive measures to make improvements.

Make Exercise Fun

For some people, the thought of going to a gym to exercise is dreadful. To encourage employees to get up and get moving, even if it's not in a traditional gym, promote events and activities that involve dancing, swimming, martial arts, playing sports, biking, yoga, or walking trails. These days, especially in our COVID-19-world, there are endless athome workouts that you can share with your employees to encourage them to stay active. The key is to educate your workforce that any form of movement and exercise is good for their health.

Provide Healthy On-Site Foods

Due to COVID-19, many businesses and organizations do not have employees on-site, but if or when things return to “normal,” or you’re an essential business, it’s more important than ever to provide healthy on-site snack and food options to your employees. You can make it easier for your employees to access options by stocking vending machines, self-service kiosks, or on-site cafeterias/restaurants with healthy food and drink choices.

Leverage Partnerships

Develop relationships with outside vendors that provide healthy products and resources. For example, partner with a local sandwich or smoothie shop to give employees discounts or loyalty cards that can be redeemed for free healthy goods. Do you have a local gym in your area that might be willing to offer your employees a discounted membership? These type of partnerships are a win-win for your business, their business, and most importantly, your employees!

Cheers to a Healthy 2023!!

2023 construction industry perspective bracing for uncertainty, planning for success

By: marty mccarthy, cpa, ccifp, mcarthy & company

For organizations that made it through 2022, the shift from surviving to thriving hasn’t been seamless, as many may still find themselves victims of circumstances outside their control. A one size fits all panacea for the construction industry is impossible. Each sector faces unique challenges while balancing compliance and legalities and adapting to new industry trends.

The last two years have been turbulent for the construction sector. But experts at Dodge suggest the needle will move, and momentum will pick up for the industry in 2023.

Even in the face of optimism, the fact remains that current market dynamics suggest 2023 will experience variable growth rates across different industry segments as the country, as a whole, teeters on recession. For those industry experts expecting a 2023 recession, there remains to be a determination as to how prolonged or severe the downturn will be. Still, current economic trends and aggressive federal interest rate hikes suggest the recession won’t be long-lived. In addition, while increased costs and supply chain issues still hinder many businesses, our clients cite the labor shortage as their primary challenge, indicating they have work in the queue but not enough staffing.

With the global economy slowing down and the 2023 projected growth of the US economy lingering beneath 1%, a thorough understanding of the cyclical nature of the construction industry is paramount, as threats to bottom lines range from mild to severe, depending on industry segment, size, and location. In addition, supply chain issues, labor shortages, and increased fuel and material costs continue to impede progress for many organizations.

The Inflation Reduction Act (IRA) will significantly impact companies that work on infrastructure projects, especially those that do roadwork. The IRA contains $3B to fund Neighborhood Access and Equity Grants, a program that aims to rework overbuilt arterial roads to help make them safer. With the increased focus on infrastructure and additional funding, we expect to see increased demands for large-scale projects.

With the increased demand for projects, we expect many construction companies to look to hire additional workers. As a result, the IRA included provisions allowing enhanced tax credits if prevailing wage and apprenticeship requirements were met. The IRA’s prevailing wage and apprenticeship requirements apply to the advanced energy project credit, alternative fuel refueling property credit, clean fuel production credit, credit for carbon oxide sequestration, credit for clean hydrogen, energy efficient project credit, investment tax credit, and production tax credit. With the supply chain disruptions and the employee shortages, these increased tax credits will hopefully help the construction industry level out and recover.

While eliminating obstacles in each sector may only be possible in some cases, there are ways to ease their burden. Although there may not be a one-size-fits-all solution in the construction field, laying the foundation for a successful 2023 starts now by identifying opportunities for efficient tax planning and implementing proactive strategies for the year to come.

Tax Planning

Tax laws are evolving to meet the needs of new trends and business models. Therefore, organizations should consider how to maximize the opportunities or minimize the implications of both new and existing policies, such as:

* Bonus Depreciation – Section 168(K)

* Employee Retention Credit

* Research and Development Expenses

* Excess Business Loss Limitation

* Inflation Reduction Act

“Construction is at a pivotal moment surrounded with opportunities to innovate and reimagine its trajectory with new practices that impact the bottom line and contribute to positive societal changes. Despite the clouds on the horizon, the future of construction remains bright.”

- Dodge Construction Network Year End Report.

* Meal and Entertainment Deductions

* Net Operating Losses

* Pass-Through Entity Tax Election

* Section 163(j) Business Interest Deduction Limit

* 179D Deduction

* 45L Tax Credit

In addition, the Tax Cuts and Jobs Act of 2017 significantly changed the tax consequences of business structures. Therefore, depending on a business’s financial health, it may be time to consider if a change in structure is warranted.

Careful attention should also be paid to retirement savings plans, which could reduce modified adjusted gross income and help reduce or avoid the Net Investment Income Tax. Finally, exit planning should be a top priority for those considering retirement. Getting a company ready to sell or conduct a family succession could take years, and estate tax implications are due to sunset in 2026.

A solid tax plan could be a differentiator between success and failure, especially on the heels of the last two years in the construction industry.

Business and Operational Planning

Efficiently and effectively monitoring and controlling investments and construction costs helps businesses stay competitive. Taking inventory of current processes and improving internal controls to improve cash flow, increase profitability, and boost financial security should also be part of planning for 2023. For some organizations, digitization through automation, AI, and even robotics will significantly impact safety, design, and efficiency, thus increasing bottom lines over time and presenting opportunities for R&D credits.

For companies looking to grow and for companies struggling to stay afloat, planning for strategic acquisitions and mergers may be a winning solution, especially with interest rates on the rise. A word of caution, however, is that 2023 may not be the time to branch out into a new construction sector. Instead, organizations should focus on procuring profitable projects in their niche and doing what they do best.

This does not mean, however, that construction companies shouldn’t consider ways to embrace new trends. For example, with the cost of building materials, such as concrete and gypsum, rising and increasing demand for green construction, smart buildings, and structure rehabilitation, companies will need to factor in how to reduce building material costs while sourcing sustainable materials. If this isn’t possible, now is the time to consider how to stock/ store materials in advance. Making this transition takes careful planning and budgeting and should be part of any robust 2023 tax plan.

In addition, it’s an ideal time for teams to perform a thorough internal audit. Organizations should take inventory of their subcontractor prequalification process, job costing processes, internal bookkeeping, employee management systems, cybersecurity, and financial reporting procedures. Where is there room for improvement? Are there metrics in place to capture relevant data? Are KPIs pertinent and useful? An all-encompassing tax plan will shore up weaknesses and provide strategic solutions for future growth.

Final Thoughts

It has yet to be determined what will ultimately happen in 2023. But with the current economic indicators pointing towards a recession, it is imperative to be diligent with business plans. These uncertain times call for strategic preparation and planning.

A proactive tax plan is not just about filing taxes, deferring large expenditures, and limiting lines of credit; it's an investment in strategies (including keeping a healthy cash reserve) that can carry an organization through difficult economic times.

It’s important to remember that even with the most efficient technological advances, it is still the workforce that enables the construction industry to thrive. In the face of the current labor shortage, organizations need to accomplish more with fewer employees. Incorporating the costs of training, apprenticeship, and certification programs into 2023’s tax plan can pay off in the long run by helping reduce turnover and securing more engaged, committed workers.

The Construction Services Team at McCarthy & Company is uniquely positioned to advise clients within the construction industry. Our team of industry-leading advisors helps clients manage their businesses more efficiently, control operating costs, improve cash flow, obtain financing, and meet surety bond requirements. Always in the know, we deliver up-to-date, proactive solutions that will enhance our client’s profitability.

About the Author. . . Marty McCarthy, CPA, CCIFP, is the managing partner of McCarthy & Company. Sureties and bankers respect Marty for his high-quality work and profound understanding of the construction industry. Marty helps clients by giving them the insight needed to grow their businesses. He can be contacted at 610.828.1900 or marty.mccarthy@mccarthy.cpa.

The material provided in this post is solely for informational purposes and should not be relied upon for tax or accounting advice. Please consult your tax advisor regarding your situation.