Utility & Transportation Contractor December 2024

Utility & Transportation

contracTOR

IEW Marks A Century In Business, Keeping An Eye To The Future

december 2024

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NEWARKAsPHALT CORP MANUfAQURER Of HOT & COLD ASPHALT SINCE 1965

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McKEE

RISK MANAGEMENT CELEBRATING 25 YEARS IN BUSINESS �

IEW CONSTRUCTION GROUP CELEBRATING THEIR lOO TH ANNIVERSARY

BEST WISHES FOR CONTINUED SUCCESS! - YOUR FRIENDS AT C&H AGENCY Exclusively Serving Contractors' Insurance & Bonding Needs for Over 50 Years 55 Lane Road, Suite 210 • Fairfield, New Jersey 07004 P.O. Box 10003 • Fairfield, New Jersey 07004 PHONE 973.890.0900 • FAx 973.890.9038 • E-MAIL: info@chagency.com

www.chagency.com

president’s message

From the desk of: gerard burdi

N

ow that we are in the middle of the holiday season, it seems appropriate to begin by offering thanks to my industry colleagues for their support throughout the past year and for allowing me to serve another year as President of the UTCA. I am humbled by the confidence they have placed in me and I look forward to building on our successes over the past year and making 2025 an even better year for UTCA and the construction industry.

Of course, any discussion of the past year must begin with the results of the recent election in which Donald Trump completed a stunning political comeback by defeating Kamala Harris in the race for President.

Republicans also took control of the US Senate and will retain their majority in the House. While we don’t yet know the impact of complete Republican control of Washington, it is likely we will see some rollbacks of more progressive policies and a push for enactment of a more pro-business agenda.

While this election will have a major impact across the country, it will also significantly affect New Jersey where we will choose a new Governor next year. With the presidential election behind us, the battle to lead the Garden state for the next four years will take center stage, with over a dozen candidates already in the race and more likely to join the contest in the next few weeks.

It is also important to note that New Jersey’s General Assembly will be on the ballot with the gubernatorial candidates and that will influence which bills are considered over the next year.

Most likely, UTCA will continue to be busy pushing back on a myriad of bills that would harm the industry. The association opposed a number of negative policies over the past few months, including legislation that would increase Disadvantaged Business Enterprise (DBE) goals in state construction contracts. You may have seen our Executive Director Dave Rible’s article in which he pointed out the folly of enacting new DBE goals without addressing the root causes of any disparities among minority- and women-owned businesses in contracting.

2 Utility & Transportation Contractor | december| 2024

UTCA also tackled more bad policy in Gov. Murphy’s “Clean Truck” rule which mandates that by January 1, 2025, a percentage of trucks sold in the state be zero-emission vehicles. UTCA has been calling for a delay in implementing this requirement and UTCA-backed legislation pushing the effective date of these rules back until 2027 was recently introduced.

UTCA opposed another harmful rule that seeks to limit development in flood prone areas by imposing onerous new requirements for construction projects. UTCA’s Director of Utility and Environmental Operations, Kyle England submitted comments opposing these rules which will delay work and increase the cost of construction projects.

This rule was the subject of discussion at UTCA’s Utility Committee meeting which has recently begun meeting again with Lisa Ballerini of Montana Construction and Peter Brindley of Kiely Companies serving as Co-Chairs. UTCA’s Safety, Legislative and Convention Committees also met over the past few months while board members and staff participated in productive meetings with NJ Transit and the Gateway Development Corporation which is overseeing construction of the new Hudson River tunnel.

Despite all of the hard work, UTCA did manage to enjoy some fun social activities, including the always popular Cocktail Reception at the New Jersey League of Municipalities Convention and the Fall Clay Shoot which benefits our scholarship fund. And many UTCA members will soon be departing for the luxurious Casa de Campo Resort in the Dominican Republic for our Executive Seminar.

Finally, I am pleased to congratulate former UTCA President Darrell Harms and the folks at IEW Construction Group who are celebrating their 100th anniversary and I wish everyone a happy, healthy and prosperous 2025.

Gerard L. Burdi

CONTENTS

Cover story 52 iew marks a century

in business, keeping an eye on the future

52

DEPARTMENTS

features

2 President’s Message 7 Financial Overview 15 Legal Dig 25 Accounting Corner 33 Legislative News 43 labor relations 69 the pipeline

75 mckee risk management marks 25 years

NEWS 83 beware 1094 and 1095 irs enforcement 89 end of year benefits wrap-up 97 disparity study-based legislation treats the symptoms, not the cause

Published Bimonthly During 2024

2107 Route 34 South Wall, NJ 07719 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: Ryan Sharpe, Dan Neville, Kyle England Advertising Manager: Helene Nasdeo Production/Graphics: Lauren Hagan, Helene Nasdeo Circulation: Helene Nasdeo Printed By: American Plus Printers Affiliations: ARTBA, Clean Water Construction Coalition, Water Infrastructure Network Utility & Transportation Contractor (ISSN 8750-3190) Copyright © 2024 by the Utility & Transportation Contractors Association is published six times per year by UTCA, 2107 Highway 34 South, Wall, NJ 07719. Call (732) 292-4300 to subscribe. Periodicals postage is paid at Red Bank, NJ, and additional mailing offices.

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

Utility & Transportation Contractor | december| 2024 3

union paving

1140 Globe Ave. Mountainside, NJ 07092 Phone: 908.232.4100 www. unionpaving .com An Equal Opportunity Employer

We would like to congratulate

IEW Construction Group As They Celebrate 100 Years In Construction!

McKee Risk Management As They Celebrate 25 Years In Business!

-EXPERIENCED­ LOCAL LENDERS CONGRATULATIONS TO IEW CONSTRUC TION GROUP'S lOQ TH ANNIVERSARY AND MCKEE RISK MANAGEMENT ON 25 YEARS IN BUSINESS.

BILL RUCKERT

Senior Vice President, Middle Market Lending

by: william j. ruckert, iii, senior vice president - provident bank

J

erry Garcia wrote the song ‘Old and In the Way’ and while there were many catchy lyrics the song suggests that wisdom learned over a lifetime is discarded by younger people as ‘gold will turn to grey.’ The Oxford Dictionary defines wisdom as ‘Capacity of judging rightly; soundness of judgement.’ Wisdom is difficult to measure but very simple to see when it’s in use. It is not something you’re born with, it takes years to acquire and unfortunately, not everyone attains it. Successful business owners use wisdom in their decision making but they also leverage their colleagues and business partners to broaden it.

Over its history, the construction industry has wisely improved its business practices, enhanced bidding efforts, upgraded financial forecasting and bolstered employee safety. Companies with long successful track records have effectively used it when running their business and their list of achievements demonstrates that. Well capitalized balance sheets absorb economic downturns, managing customer concentrations limits exposure to individual jobs, the timely monitoring of profit margins maximizes profits or minimizes losses and safety protocols reduce the likelihood of injury. Companies routinely produce various reports to monitor the above, but wisely reading and acting upon them, is the difference maker.

Technology can be leveraged to help make wise decisions, but it does not replicate nor replace wisdom. Advances in technology move at a break-neck speed and AI contributes greatly to the accelerated pace. Keeping up with it, is both difficult and costly, but business owners need to wisely keep their companies up to date. In doing so, deploying technology will make it increasingly more relevant, profitable, efficient and help manage risk in the workplace.

An effective banking relationship depends on wisely leveraging the wisdom of the business owner and banker. Company management understands its business and must convey that knowledge to their banker. A value-added banker knows that all banking needs are not alike, and solutions should be tailored to the individual situation. Credit facilities differ in structure to meet specific needs, but the knowledge and experience of company management needs to be considered when shaping a financing arrangement. Similarly, non-credit services like Treasury Management, Trade Finance and Wealth Management also have unique characteristics and wisdom is needed for selecting the appropriate services as well as aligning them to the credit structure.

Financial overview

never underestimate wisdom in financing

Unfortunately, there are many instances where businesses, including banks, have made unwise decisions, forgetting the lessons of the past. Unwise decisions driven by inexperienced managers can lead to declining revenue, uneven earnings, weakened balance sheets and sometimes failure. Cliches like ‘measure twice cut once’ or ‘what goes up must come down’ and ‘never put all your eggs in one basket,’ are as relevant in the business world today as when first coined. Book smart is important but so is street smart, which is often times used to characterize wise people.

There needs to be synergy between a company’s financing needs and the proposed structure offered by the bank. Management can clearly define its expectations, but their wisdom coupled with the banker’s expertise, should be wisely joined to meet the needs of the company with that of the bank. Working capital financing should support short-term borrowing needs and treasury management services should be aligned with that, while recognizing its ebbs and flows as well as fraud risks. The proper leveraging of collateral is also important when used to support growth projections, acquisitions and if necessary, a recapitalization of the company’s balance sheet. Financial statements and forecasts must be wisely analyzed by both parties, to ensure financial objectives can be met and adequately supported.

“Old and in The Way” was also the name of Jerry’s band and it is the signature song on their album. The song’s lyrics had many good phrases as they often do, but the most meaningful one was, ‘they used to heed the words he said.’ Disappointingly the ending to the sentence is ‘but that was yesterday.’ Always consider the wisdom garnered from past experiences and others, when making financial decisions, and prove Jerry wrong.

Utility & Transportation Contractor | december| 2024 7

VOLLERS

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ENVIRONMENTAL

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PAVING

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congratulations IEW Construction Group & McKee Risk Management

10 Lawrence Street Belleville, NJ 07109 (973) 751-4848 www.Ritacco.com An Equal Opportunity Employer

CONSTRUCTION

Congratulations JEW Construction Group celebrating I00 years in Business

GU/DERAIL

FENCING SIGNS S/GNFOUNDATIONS

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1512 Mays Landing Road Hammonton, New Jersey 08037 Phone: 609-561-3800 EXT.320 Fax: 609-567-8349 www.ruberton.com Email: info@ruberton.com

FLORIO

PERRUCCI

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STEINHARDT CAPPELLI & TIPTON LLC

Construction & Public Contracting Law

IEW Construction Group 100th Anniversary

McKee Risk Management Celebrating 25 Years in Business

Legal Strategy • Government Advocacy • Business Solutions Louis Cappelli, Jr., Esquire (856) 853-5530 x1311 lcappelli@floriolaw.com

Brian R. Tipton, Esquire (610) 691-7900 x1023 btipton@floriolaw.com

Cheny Hill, New Jersey

Easton, Pennsylvania

www.floriolaw.com

By: nicholas a. sullivan, esq.

H

istorically, the Office of Federal Contract Compliance Programs (“OFCCP”) has not audited construction contracts at the same frequency as audits of supply and services contractors. As such, many construction contractors are likely unaware of their obligations. Moving forward, the OFCCP will begin increasing the number of audits of construction contractors. For the remainder of 2024 and moving forward, the OFCCP intends to focus its audits on high value construction projects exceeding $35 million, known as Mega projects.

ing, screening and/or hiring products and services used by the contractor.

On October 2, 2024, the OFCCP released a revised Scheduling Letter and Itemized Listing for construction contractors. This revised Scheduling Letter will require contractors to submit significantly more detailed data and documents with a contractor’s initial audit submission. The revised Scheduling Letter is effective and applicable to all construction audits initiated on or after October 1, 2024. Contractors will have only 30 days from receipt of the revised Scheduling Letter to submit all audit materials required by OFCCP.

3. Providing data on wage rates, regular and overtime wages, types of pay, and bonuses. Each component of pay to workers must be separately reported for each construction project within the SMSA.

The revised Scheduling Letter specific new requirements for construction contractors include:

2. Providing employment activity data that includes all trade employees, including supervising, inspecting, or engaging in other onsite functions incidental to the actual construction. This data includes employees who are laid off, including their name, trade, job title, gender, race, ethnicity, the date of and the reason for the layoff, and eligibility for recall.

Legal Dig

Office of federal contract compliance programs new audit requirements for construction contractors

4. Demonstration that the contractor is monitoring its personnel and employment activities to ensure that seniority practices, job classifications, work assignments, and other personnel practices do not have a discriminatory effect. The contractor may provide evidence of monitoring its personnel and employment-related activities by providing meeting notes, reports or notes describing the contractor’s review, or an impact-ratio analysis of the personnel practices.

5. Additionally, the contractor must demonstrate that the contractor’s EEO policy, anti-harassment policies and other related policies are being observed. These anti-harassment policies must be submitted to the OFCCP for review as part of the audit.

1. Reporting on the use of artificial intelligence, algorithms, or other automated systems in its hiring process. This includes contractors identifying all selection procedures used to fill positions in the Standard Metropolitan Statistical Area (“SMSA”) selected for audit, including all tests used in the hiring process. Contractors must provide evidence that any such tests or selection procedures were completed in compliance with all applicable federal regulations. This includes all information and documentation for thirty-party recruit-

Moving forward, contractors need to be proactive and vigilant in collecting all the documentation that is required under the revised Scheduling Letter. This will permit the contractor to review and reconcile relevant employee hour reports, regular and overtime wage rates, and total compensation for each employee prior to audit review by the OFCCP. Federal and federally assisted construction contractors should review their compliance practices and assess recruitment and outreach practices for continued yearly efficacy. Contractors must be aware of the depth and numerous requirements to ensure full compliance with the OFCCP review.

Utility & Transportation Contractor | december| 2024 15

Congratulations to

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www.gardenstateprecast.com

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© 2018 Garden State Precast • (732) 938-4436 dmorris@gardenstateprecast.com & gomalley@gardenstateprecast.com

Engineering is the Backbone of our Success in Every Type of Construction Congratulations to:

IEW Construction Group 100th Anniversary

McKee Risk Management

Celebrating 25 Years In Business

Whenever you drive on a highway, or ride a train, or fly into most airports in New Jersey, you probably have benefitted from Anselmi & DeCicco's expertise.

Unusual Challenges : Unique Solutions 1c;17 Sc>r 1g1eld i\venJe, Ma:ilewoc:J, NJ 0704(

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PIPE, CULVERT, TUNNEL & MANHOLE RENEWAL • Geopolymer Lining • Manhole Rehabilitation • Spin-Cast & Spray Application

PIPE RELINING • CIPP Lining • UV CIPP Lining • CIPP Point Repairs

INSPECTION, CLEANING & ASSESSMENT • Clean & CCTV • Multi-Sensor Inspection • Manhole Assessment

GROUTING • Leak Stoppage • Soil Stabilization • l&I Prevention

VORTEX SERVICES CONGRATULATES IEW Construction Group Celebrating 100 Years in Business McKee Aisk Management Celebrating 25 Years in Business

1-855-WHY-DIGl

www.vortexcompanies.com sales@vortexcompanies.com �2024 Vortex Companies, LLC. All Rights Reserved.

RARITAN SINCE 1943

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Pipe• Valves• Fittings• Automation

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JAG COMPANIES

CONGRATULATIONS!

McKee Risk Management 25 Years in Business

I EW Construction Group 100th Anniversary

H E AVY CIVIL• TUNNEL• DRILLING • MARINE CONSTRU CTION COMPANIES "Constructing Reliable and Sustainable Infrastructure" REPUTAT ION WORK ETHIC TEAM ACCOMPLISHMENT

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National Minority Supplier Development Council

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�wiss

Accounting, but better.

CONGRATULATIONS! Celebrating their 100th Anniversary IEW Construction Group

Celebrating 25 Years in Business McKee Risk Management

the evolution of accounting practices in the real estate and construction industry By: alex narcise, wiss

Initially, accounting in real estate and construction was heavily focused on basic bookkeeping and compliance tasks. Manual processes dominated the landscape, with professionals dedicating significant time to paperwork and manual calculations.

However, as the industries evolved, so too did the expectations placed upon accounting professionals. There was a growing demand for more comprehensive financial insights and strategic advisory services, especially as projects became more extensive and complex.

Technological Advancements The advancement of technology has been a significant catalyst for change. The introduction of sophisticated accounting software such as Sage 300 Construction and Real Estate (formerly Timberline Office), QuickBooks, and Procore has revolutionized the management and analysis of financial data. These tools have automated many routine tasks, freeing accountants to focus on

P6 has significantly impacted accounting practices. These technologies offer detailed insights into project timelines, costs, and resource requirements, allowing accountants to deliver more precise financial reports and forecasts. The ability to track project progress and financial performance in real-time enhances decision-making capabilities and fosters more proactive financial management.

Impact of Regulatory Changes Regulatory changes have also played a crucial role in shaping accounting practices. The introduction of standards such as the Current Expected Credit Losses (CECL) for financial instruments has prompted companies to incorporate more robust risk management practices. CECL requires a forward-looking approach to credit losses, prompting construction and real estate companies to integrate more comprehensive risk management strategies into their accounting practices. For businesses working on government contracts, understanding and applying these standards is essential to maintaining compliance and securing future projects.

Accounting Corner

O

ver the past few decades, the real estate and construction industries have undergone substantial transformation, particularly in the realm of accounting practices.

As these sectors continue to grow and adapt, the role of accounting professionals has become increasingly pivotal in ensuring financial precision and strategic planning.

Focus on Sustainability Sustainability has become a key focus as regulatory requirements have tightened and consumer awareness has increased. Real estate and construction companies are increasingly adopting sustainable practices, and accountants are integral to this transition.

They assess the financial implications of sustainable initiatives and ensure compliance with environmental regulations, making sustainability both a financial and ethical priority.

Evolving Client Relationships

more strategic aspects of financial management. In real estate and construction, this shift has allowed for more accurate project forecasting, cost management, and resource allocation.

Furthermore, the integration of Building Information Modeling (BIM) and project management software like Oracle Primavera

The evolution of client relationships has been another significant change within the industry. Today, accounting professionals are expected to act as strategic partners, offering insights that extend beyond traditional financial reporting. This shift has been driven by increasing client demands for value-added services and a deeper understanding of financial performance. Accountants in real estate and construction are now more involved in advising on investment strategies, tax planning, and financial structuring, helping clients navigate the complexities of the industry.

Internally, the focus on relationship-building has led to a more

Utility & Transportation Contractor | december| 2024 25

collaborative approach. The traditional one-accountant, one-client model has evolved into a team-based approach, where diverse expertise is harnessed to address various project challenges.

This collaboration enhances the ability to deliver comprehensive solutions and manage the multifaceted nature of real estate and construction projects effectively.

Accounting Corner

Future Trends: AI and Data Analytics Looking ahead, the real estate and construction industries are poised for further transformation as they continue to embrace digital transformation. The role of artificial intelligence (AI) and data analytics is expected to become more prominent. AI can automate complex data analysis, providing deeper insights into financial trends and patterns. Data analytics tools enable the extraction of meaningful insights from large data sets, offering valuable information for strategic decision-making.

These advancements will further enhance the ability of accounting professionals to provide strategic guidance and support innovation in project management and financial planning. As these technologies evolve, the potential for increased efficiency and accuracy in accounting practices will continue to grow, opening new opportunities for firms that embrace these changes.

In conclusion, as the real estate and construction industries continue to evolve, accounting practices must keep pace with these dynamic changes. Wiss stands at the forefront of this transformation, bringing over five decades of experience to redefine and

26 Utility & Transportation Contractor | december| 2024

modernize the accounting landscape. By offering accounting, advisory, and wealth management services, Wiss prioritizes client relationships and leverages business intelligence to deliver impactful solutions. Our commitment to innovation and integrity ensures clients not only meet their financial goals but also thrive in an ever-changing market. As trusted advisors, we are dedicated to unlocking the full potential of accounting, making us an essential partner in navigating the future of financial management in these industries.

About the author . . . “Our team takes great pride in being a forward-thinking partner with our clients versus being a historian.”

Alex is the Partner-in-Charge of Real Estate and Construction Services Group, specializing in all areas of accounting, audit and tax for family-owned real estate businesses. In addition, Alex represents various institutional investors. Alex’s passion is advising clients on business issues and working through tax saving opportunities.

Under his leadership, the real estate practice has implemented important value-added services. These services include cost segregation studies, outsourced CFO, and software implementation services specifically for the real estate business, real estate valuation, financial modeling, specialty tax credits, and consultation on deferred exchanges. Focusing on the world of real estate has allowed Alex and his team bring relevant and up to date knowledge to clients. Prior to joining Wiss, Alex worked at Ernst & Young (An International Accounting Firm) and Pulte Homes.

Alex currently serves as a member of Wiss’ Executive Committee.

RAILROAD CONSTRUCTION COMPANY, INC. ��

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WETLANDS INC

A LANDSCAPE & SITE CONSTRUCTION COMPANY

• Topsoil & Earthwork

Soil Erosion Control • Tree Removal & Pruning Wetland Mitigation

Hydroseeding & Hydromulching

Hardscaping • Concrete Work

• Planting & Sodding

Irrigation

Congratulations to IEW Construction Group celebrating 100 Years and

McKee Risk Management 25 Years in Business NJ WBE / NJ SBE / NYC WBE / NYC SBE / PANY & NJ SBE / PANY & NJ WBE

Landscape Irrigation Contractor & Boa rd of Tree Experts 569 North Midland Avenue, Saddle Brook, NJ 07663

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Congratulations to IEW Construction on their 100th year Anniversary and to McKee Risk Management on 25 years of success

A Trusted Name in Site Development and Heavy Construction Services for Two Generations.

Underground Utilities Waste Water Pump Stations

Cast-in-Place 1 Mass Earthwork Concrete and Bridges \ and Grading

Serving New Jersey Southern New York Eastern Pennsylvania and Delaware.

constructors for good government 2024 contributors UTCA would like to thank all firms that have contributed to our Industry PAC for 2024 President’s Club

J. Fletcher Creamer & Son Crisdel Group D’Annunzio & Sons George Harms Construction JRCRUZ Corp.

Northeast Remsco PKF Mark III Schifano Construction Union Paving & Construction

Governor’s Level Black Rock Enterprises Montana Construction P&A Construction Petillo LLC Skoda Contracting

Ambassador Level

Asphalt Paving Systems Colliers Engineering & Design South State Inc.

Leadership Level

Anselmi & DeCicco Carbro Constructors Ralph Clayton & Sons Kiely Civil R.E. Pierson Construction Traffic Lines Inc. Zone Striping

Platinum Level

B. Anthony Construction Bayshore Recycling Berto Construction Diaco Contracting Haines & Kibblehouse Inc. M.S.P. Construction Corp.

New Prince Concrete Construction Orchard Holdings P.M. Construction Pillari Brothers Construction Pioneer Pipe Contractors M.L. Ruberton Construction Smith Sondy Asphalt Construction Trap Rock Industries Work Zone Contractors Yonkers Contracting

Gold Level

C&H Agency Concrete Construction Corp.

Della Pello Contracting Eastern Landscape Contractors Fai-Gon Electric Lehigh Utility Association Mathis Construction Metra Industries Northwest Equipment Penn Bower Inc. Persistent Construction Sa & Sons Construction Scafar Contracting Taylor Oil Company Waters & Bugbee Zack Painting

Silver Level

C. Abbonizio Contractors JA Alexander JM Ahle Atlantic Concrete Products Atlantic Cordage B&W Construction Bil Jim Construction Brent Material CATS Sweeping CRS Contractors Caterina Supply Concrete Cutting Systems Edward H. Cray Patrick DiCerbo - Northwestern Mutual Flanagans Contracting ICON Equipment J.C. MacElroy Co. Pact One LLC Pro Tapping Renda Roads Ritacco Construction Rockborn Trucking & Excavation SJA Construction SPA Safety Systems V.A. Spatz & Sons TKT Construction Tobia & Lovelace Trench Technologies

If your firm is interested in donating to Constructors For Good Government, please visit www.utcanj.org and CLICK ON, Donate To Our PAC or contact Dave Rible at (732)292-4300 or dave@utcanj.org

electric truck mandate, state contracting disparities highlight busy fall for legislature By: ryan sharpe, director of government affairs and communications

A

fter a months-long recess, the Legislature resumed meeting in September and immediately waded into a number of issues affecting the construction industry.

The Assembly Community Development and Women’s Affairs Committee held a hearing on these bills in late September. UTCA testified against several of the bills, urging lawmakers to focus on the root causes of any disparities which are largely a function of onerous state regulatory requirements, industry practices, and a shortage of minority- and women-owned businesses (MWBE) able to bid and perform state construction contracts. The bills were approved by the Committee but must now clear multiple legislative hurdles in order to be enacted.

There was also legislative action on the “Advanced Clean Truck” Rule with the introduction of a measure that would delay implementation of the requirement that, beginning on January 1, 2025, a percentage of trucks sold in the state must be zero emission vehicles.

UTCA and various industry partners urged lawmakers and the Governor’s Office, as well as the New Jersey Department of Environmental Protection (DEP), to delay the effective date of this rule, noting that the state is not prepared to implement this mandate which would negatively affect the industry and our state’s economy. In addition, several neighboring states have delayed the implementation of similar rules.

Under the legislation, the zero-emission vehicle mandate would not go into effect until January 1, 2027. However, addressing pollution caused by trucks is a priority for many environmental and social justice organizations so the future of this measure is uncertain.

Another issue that re-appeared on the Legislature’s agenda is the bill setting a workplace heat standard that requires contractors to take certain steps during periods of high heat. UTCA had opposed this legislation and sought an exemption for entities that

In September, a new version of the heat standard bill was introduced that incorporates some significant changes to the original bill but does not include the exemption UTCA requested.

The changes include raising the temperature trigger from 80 degrees to 85 degrees, exempting those that are signatories to a collective bargaining unit, exempting emergency work that is directly related to protecting life or property, and eliminating criminal penalties for violations of this law.

UTCA has also engaged in a number of other bills, including one that would require all general contractors to be licensed by the state and a measure that would establish criminal penalties for willful violations of the Prevailing Wage Act, including fines up to $10,000 and as much as 18 months in prison.

UTCA has been supporting legislation that would enable the New Jersey Infrastructure Bank (I-Bank) to finance additional projects and allow it to utilize public-private partnerships to finance energy infrastructure projects. Related to the I-Bank, UTCA continues to advocate for additional funding for water infrastructure projects and recently joined stakeholders in a meeting with DEP Commissioner Shaun LaTourette to urge him to ensure next year’s State Budget increases funding for critical drinking water, stormwater and sewer infrastructure projects.

Legislative News

One of the topics that drew lawmaker’s attention was the racial and gender disparities in state contracting that were the subject of a January report from Governor Murphy. As expected, this report resulted in a bill package designed to address the small percentage of minority and women-owned businesses working on state construction contracts. Among the bills, is a measure increasing state agency set aside goals to 30 percent for socially and economically disadvantaged businesses.

engage in and support public works construction, including contractors, subcontractors and suppliers.

While the Legislature has been active of late, all eyes were focused on the recent national elections which saw Donald Trump secure the White House and Republicans take control of the Senate. The GOP also maintained its narrow majority in the House which will help to advance President Trump’s priorities but may continue the intra-party bickering that plagued the Republican caucus over the past year.

Most pundits had expected a close race between Trump and Vice-President Harris but Trump scored a resounding victory by focusing on social and economic issues and securing the border.

Republican control of the Senate should facilitate the confirmation of Trump’s Cabinet who will help to implement his agenda.

Republican control of Washington will have a significant impact on the industry with Trump promising to roll back environmen-

Utility & Transportation Contractor | december| 2024 33

tal and anti-business regulations. At the same time, the enactment of spending reductions advocated by Republicans could result in tremendous cuts in infrastructure funding.

The national Republican wave was also felt in New Jersey where the closer-than-expected Presidential race led to smaller Democrat margins in New Jersey Congressional races and helped Congressman Tom Kean Jr., maintain his seat in one of the state’s few competitive House races. Trump also performed significantly better in New Jersey in this election. After losing by 14 and 16 percentage points in his last two campaigns, Trump only lost New Jersey by five points in the last election which is the smallest margin in 30 years.

Legislative News

While the impact of this strong Republican showing in New Jersey is yet to be determined, it will likely affect the priorities of state legislators who may shy away from more progressive policies and seek to focus on pocketbook issues that seemed to drive voters to the polls this year.

In addition, these election results will impact on New Jersey’s political environment next year as the campaign to replace Phil Murphy as New Jersey Governor will now take center stage. The past year has seen jockeying among candidates on both sides of the aisle but with the 2024 elections in the rearview mirror, the 2025 race for Governor will intensify.

34 Utility & Transportation Contractor | december| 2024

The crowded field of candidates is likely to swell as Congressman Josh Gottheimer recently announced his candidacy and Congresswoman Mikie Sherrill is widely expected to enter the race. They will join a Democrat field that includes former Senate President Steve Sweeney, Jersey City Mayor Steve Fulop, Newark Mayor Ras Baraka and NJEA President Sean Spiller. Republican candidates include former gubernatorial candidate Jack Ciattarelli, State Senator Jon Bramnick, radio host Bill Spadea and former State Senator Ed Durr.

While the Governor’s race will garner the most attention, the General Assembly will also be on the ballot next year. While Democrats are expected to maintain their majority, election year politics will likely play a major role in what issues are considered in the Assembly from now until November.

New Jersey is unique in that its elections do not always coincide with federal elections. This system of holding “off year” elections blunts some of the influence of national elections on New Jersey’s elections. However, it also means there are elections every year in New Jersey. Whether this is good or bad depends on one’s perspective, but it does mean that many lawmakers could have the upcoming election in mind when casting votes.

UTCA will be monitoring and engaging with candidates and policymakers from both sides of the aisle as we continue advocating for policies that support the infrastructure construction industry.

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what employers should know about employees' political speech in the workplace By: kevin s. brotspies & greg trif | trif & modugno llc

A

lthough the 2024 presidential election may be over, it seems that politics have inescapably become part of our daily lives. This requires employers to confront challenging, complex, and sensitive issues regarding employees’ political speech.

Federal & State Laws Regarding Political Speech While the First Amendment protects the right to freedom of speech – including individuals’ right to express their political views – the First Amendment does not apply to private employers. This means that private employers can generally restrict their employees’ political speech in the workplace to a greater extent than the government can.

However, construction industry employers, like employers in other industries, may not restrict employees’ political speech in a manner that violates the National Labor Relations Act (“NLRA”). The NLRA, which applies to union and non-union employees in non-supervisory positions, protects the rights of employees to engage in concerted activity for the purpose of mutual aid, protection, or assistance. This includes the right to engage in political activity, at least to the extent such activity relates to employees’ working conditions. Examples of employee speech or activity that may be protected by the NLRA include urging co-workers to write to their representatives in opposition to right-to-work laws or encouraging employees to vote for a particular candidate due to that candidate’s positions on wages.

It is important to note that the National Labor Relations Board

While the NLRA does not protect the rights of employees to engage in political activity that is disruptive to the workplace or that interferes with the employer’s operations, the Biden-era NLRB’s 2023 decision in Lion Elastomers LLC II made it more difficult for employers to terminate or discipline an employee for abusive, sexist, racist, or hateful conduct in the workplace if the employee is arguably engaged in a protected concerted activity. Under Lion Elastomers LLC II, a different standard applies depending upon the context in which the disruptive conduct occurs. (i) an outburst to management in the workplace; (ii) social media posts and most workplace conversations; or (iii) picket-line conduct. Under this NLRB decision, an employer intending to discipline or terminate an employee for disruptive political speech that may constitute protected concerted activity must consider the context of the speech and undertake the appropriate analysis before disciplining the employee.

Contractors should also note that Title VII of the Civil Rights Act of 1964 (“Title VII”) prohibits discrimination on the basis of race, color, religion, sex, or national origin. This includes discrimination based on an employee's political beliefs. However, Title VII does not protect employees from retaliation for engaging in political activity. The New Jersey Law Against Discrimination (“LAD”) does not protect against discrimination or retaliation based on political beliefs. In addition, New Jersey law prohibits employers from improperly attempting to influence an employee’s vote.

Labor Relations

Whether such speech occurs inside the workplace (such as a union representative speaking to union members about candidates’ positions on infrastructure funding or project labor agreements) or outside of the workplace (such as an employee’s social media posts criticizing a politician or policy), employees’ political speech may impact employee morale, job performance, and work productivity, while also potentially implicating issues of unlawful discrimination, harassment, or a hostile work environment. Employers’ development and enforcement of company policies should be guided by an understanding of protections afforded to employees engaging in political speech as well as employers’ interests and obligations to maintain a functional workplace free of unlawful discrimination and hostility.

(“NLRB”), under the Biden Administration, has indicated an interest in expanding the definition of protected concerted activity, particularly with respect to speech relating to political or social justice causes. Earlier this year, the NLRB determined that an employer violated the NLRA by terminating an employee who wrote “BLM” (the acronym for “Black Lives Matter”) on his work apron. According to the NLRB, the employee was engaged in protected concerted activity because his “BLM” message was a “logical outgrowth” of prior employee protests about workplace racial discrimination and it impacted employees’ working conditions.

Key Considerations for Contractors Addressing Employees’ Political Speech * Companies should have legally compliant policies in place that can assist in dealing with political speech issues in and

Utility & Transportation Contractor | december| 2024 43

Labor Relations

out of the workplace. Some examples of employer policies include: (i) a technology policy may be relevant in the event an employee uses the company email system to send a company-wide email supporting a candidate; (ii) a dress code policy may be relevant in the event an employee wears a campaign button to work; (iii) a personal property policy may be relevant in the event an employee hangs a political sign at their desk; and (iv) a social media policy and anti-harassment policy may be relevant in the event an employee posts on social media about sensitive issues. * With so much of the public discourse taking place online, contractors are increasingly faced with issues arising from their employees’ social media posts. While a well-drafted social media policy can help an employer address conflicts raised by an employee’s online posts, employees’ social media posts, whether made during or outside of work hours, can have a very real impact within the workplace and require careful handling by management. Notably, a recent decision from the U.S. Court of Appeals for the Ninth Circuit highlighted the potential for an employer to be held liable for its employee’s social media posts, even though such posts are done outside the workplace. The Ninth Circuit held that a coworker’s “overtly sexist, racist, anti-Semitic, homophobic, and transphobic” Instagram posts could support an employee’s hostile work environment claim against the employer, since employees could view and interact with the posts inside and outside the workplace. Contractors should be mindful that an employee’s social media post on political matters can give rise to another employee’s discrimination or hostile work environment claim against the employer. * When handling a complaint concerning an employee’s online political speech, contractors should be mindful of applicable

44 Utility & Transportation Contractor | december| 2024

state law protections afforded to employees’ social media accounts. While New Jersey law permits employers to view employees’ publicly available social media posts, it does not allow an employer to require employees to disclose their username or password or provide the employer with access to their personal social media account. New York passed a similar law earlier this year. * Employers should monitor legal developments concerning the parameters of political speech. With issues such as racial equality, LGBTQ+ rights, and reproductive rights taking center stage in the 2024 election, matters that may not be thought of as overtly “political” might fall within the scope of political speech, particularly given the recent direction of the NLRB. Where an employee’s political speech concerns a protected characteristic (i.e., race, gender, or religion), contractors should handle potential discipline with due care.

Navigating political speech in and out of the workplace is a cause of great concern for businesses. Contractors should have effective policies in place to help confront what are often difficult situations, which require balancing the benefits of promoting a productive, healthy, and discrimination-free workplace with the risks of suppressing employees’ free speech.

About the Authors. . . Kevin S. Brotspies, a member of Trif & Modugno LLC, represents businesses, including contractors and subcontractors, in all areas affecting the construction industry, including in employment and labor matters. Greg Trif, a member of Trif & Modugno LLC, represents developers, general contractors, subcontractors, and suppliers in all areas of law affecting the construction industry including contract claims, project crisis management, labor and employment disputes, and business torts.

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T he long wait for Gateway Tunnel construction is over.

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Cover Story

iew marks a

century in business, keeping an eye to the future

By: Ryan Sharpe Director of Government Affairs and Communications

I

t has been said that innovation is the ability to see change as an opportunity. When a company has been around for 100 years, it’s clear that the company has seen tremendous change and more importantly, successfully adapted to an evolving environment. IEW Construction Group is a perfect illustration of how a company can achieve unparalleled success by embracing change and utilizing innovation to drive a business forward.

To understand how IEW became one of the leading infrastructure construction companies in New Jersey, one must look to its beginnings a hundred years ago and to those that laid the foundation for the company’s unparalleled success.

In 1925, Vaughan S. Grundy founded Ornamental Iron Works, a company initially focused on the fabrication and installation of ornamental and architectural metalwork. Under Grundy’s leadership, the company expanded into structural steel fabrication

Garden State Parkway Bridge replacement over Passaic River and Route 46 in Clifton, New Jersey.

and erection, contributing to some of the most iconic construction projects in our state, such as the “Trenton Makes” Bridge, the New Jersey War Memorial, and the State House Museum.

Soon after its founding, IEW played a critical role in World War II by converting the General Motors Plant in Trenton into a production center for the Grumman Avenger airplane that helped the Allies control the air in the Pacific theater.

In the following years, Vaughan Grundy Jr. led the company to continued success, maintaining its focus on steel fabrication and erection while also expanding into nuclear power projects that spurred growth throughout the 1960s and 70s. In 1982, Vaughan “Chip” Grundy III joined the firm. After a decade of learning the business, he took control of the company in 1992, which had been founded by his grandfather. Under his leadership, the company entered a period of sustained growth, expanding into bridge construction, heavy highway and heavy concrete construction, utility work, site work, maintenance, and marine construction.

Under the leadership of Chip, the current President and CEO, IEW has established itself as a premier infrastructure construction company in New Jersey and Pennsylvania. The IEW team continues to expand alongside the company’s growth and now includes over 500 employees working on their projects.

4th Generation Grundys with long time Concrete Superintendent.

From left to right, James Grundy, Tom Grundy, Vaughan Grundy IV and John Moran (Concrete Superintendent who has worked from the company since 1985).

52 Utility & Transportation Contractor | december| 2024

IEW has developed a reputation for handling complex projects which has bolstered its partnerships with government entities

"In our Industry, the only constant is change."

In recent years, IEW has tackled some of the most challenging infrastructure projects in the region, including the Route 495 bridge rehabilitation, replacement of the Garden State Parkway bridge over the Passaic River and structural rehabilitation of Interstate 95 in Philadelphia. They also perform a significant amount of work on movable bridges and recently, created a temporary drive system to operate the NJDOT Route 71 bridge between Avon and Belmar which became stuck in the open position earlier this year.

The members of its team are crucial to IEW’s success, according to its Chief Operating Officer, Darrell Harms, who notes that the culture of the company has resulted in little turnover. He points out that most of the management team have been with IEW for over 20 years and much of the field staff has also stayed with the company for many years, which he believes is a result of the company consistently demonstrating how much it values its employees.

IEW demonstrates its commitment to its staff in a variety of ways. In addition to hosting team building events, IEW fosters a collaborative work environment and helps its staff continue their professional growth by providing financial assistance for employees to acquire professional certifications and advanced edu-

cational degrees. IEW employees also receive extensive training with a heavy focus on safety.

With upwards of 90 crews working around the tri state area on a given day, communicating a consistent message can present challenges but IEW employs innovative techniques to ensure each employee is making safety a key component of every job.

This commitment to its staff is on display at IEW’s headquarters in Hamiliton which boasts a state-of-the-art training center, a café and a fitness center that rivals some health clubs. In addition, IEW also invests significant resources in mentoring programs to support young people as they embark on careers with the company.

“At IEW our greatest investment is in our people,” says Harms.

“By empowering and supporting our team, we build a foundation for long-term success, ensuring a thriving and resilient company.”

Of course, there are many factors that have allowed IEW to excel in the highly competitive construction industry for many years and to become a trusted partner for many government entities.

Cover Story

- Darrell Harms

like the New Jersey Department of Transportation, New Jersey Turnpike Authority, Port Authority of New York and New Jersey, Delaware River Port Authority, Southeastern Pennsylvania Transportation Authority, and Pennsylvania Department of Transportation.

In addition to their extensive experience in all aspects of infrastructure construction, they are responsive to the project owner, noting that they take phone calls at all hours of the day and respond to emergency issues that may arise, even on weekends.

IEW leverages its extensive fleet of heavy-duty trucks, equipment and specialized machinery to self-perform nearly all its work.

Having been in existence for a century, IEW has worked on several notable infrastructure projects and has faced many unique challenges. For example, IEW played a critical role in the response to Superstorm Sandy which saw them helping first responders gain access to the damaged communities.

Following the search-and-rescue operations, they helped rebuild the damaged infrastructure, including closing off the breach where the Atlantic Ocean met Barnegat Bay. Incredibly, they were able to complete these repairs in only six weeks.

More recently, in Warren County, IEW’s team took special precautions to manage the area’s abundant bear population while responding to a landslide that damaged Route 46. The team worked swiftly to carry out the necessary emergency repairs and reopen the roadway.

Route 46 landslide emergency repairs in Warren County, New Jersey.

While IEW must contend with industry-wide challenges, such as acquiring necessary resources, its ability to adapt to changing circumstances helps them overcome these challenges. Harms believes that this adaptability, combined with its diversification and ability to engage in different markets, has fueled the company’s steady growth. IEW’s financial stability has also allowed the firm to weather downturns in the market and make the necessary investments to allow it to thrive.

Utility & Transportation Contractor | december| 2024 53

Cover Story

“In our industry the only constant is change,” says Harms. “To stay ahead, we must be agile, continually adapting and embracing the challenges that push us to innovate and grow.”

Harms notes that several of Chip Grundy’s children are currently working at IEW. Everyone on the IEW team is united by a shared goal of doing their best to ensure that the Grundy Family is set up for continued success in the fourth generation. This dedication honors the company’s legacy, founded by their great grandfather nearly a century ago, and fuels the vision of a future where IEW continues to thrive and grow for another hundred years. By working collaboratively and striving for excellence, the team is committed to building on the strong foundation of the past while embracing opportunities for continued success.

IEW Main Office Campus - Hamilton, New Jersey.

As for the future of the company, Harms says they plan to continue to grow by constantly improving, keep exploring new markets and stay diversified in their service offerings. And they will continue to embrace change.

If the last 100 years are any indication, IEW will surely build on the firm’s incredible record of success while continuing to adapt to a constantly evolving industry. Regardless of how the industry changes, IEW will be uniquely positioned to continue to prosper while building and maintaining our critical infrastructure.

Congratulations to IEW on celebrating 100 years in business and we look forward to what the next century will bring for this storied firm.

lence Congratulations to the Grundy Family!

The employees of IEW Construction Group proudly celebrate the Grundy family on 100 years of building excellence.

Your century-long legacy of craftsmanship, innovation, and leadership has laid the foundation for future generations.

Here's to a remarkable milestone and continued success!

■ IEW

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new jersey experiencing record dry spell By: kyle england, director of environmental and utility operations

W

hat started as a “warm welcome” in my previous article has quickly dried out.

With September and October breaking the record for the driest consecutive months in our state’s history, the significant lack of rainfall mixed with warm temperatures and gusty winds brought on several severe, simultaneous forest fires in the Garden State. The conditions have caused many of our state’s reservoirs to dip to their lowest levels on record, prompting the Governor’s Office and the New Jersey Department of Environmental Protection to elevate the state’s drought response status from a drought watch to a drought warning.

While the initial drought watch status, declared in October, primarily focused on promoting reduction in demand through increased public awareness, the initiation of a drought warning phase now enables the DEP to put forth measures intended to balance all available water supplies and avert a more serious water supply shortage in the future.

Now, I know what you’re thinking: “You must be real fun at parties.”

What if I told you the solution is quite simple?

No, we cannot control the weather and I’m not talking rain dances.

We, as a state and as a nation, have it well within our capacity to soften the blow by continuing to invest in crucial water infrastructure programs.

It’s no question droughts can have significant impacts on water utility operations— loss of water supply, poor source water quality, increased costs, and reduced revenues to name a few. Poor funding of our water utilities makes it nearly impossible to staff their own drought response teams, hire temporary workers in times of crisis and maintain services that keep the water running. Not to mention, if the funding is not present for any or all the above, emergency pricing and increased surcharges will inevitably fall back on the ratepayer.

Resilience in crisis is a central tenet the UTCA has always and will continue to fiercely advocate for. Proactive investment in our water infrastructure and bolstering our state’s utilities by making them more resilient to the impacts of an unforeseen drought pays dividends to the health of our communities.

While it is yet to be seen how this drought plays out in New Jersey, the UTCA will continue to be on the front lines of such issues within our state and also the federal level. Through my role at the UTCA, I have the privilege of serving as Chair of a nationwide organization of infrastructure construction associations that together advocate for improved water and wastewater infrastructure on the federal level. The Clean Water Construction Coalition maintains a constant presence in Washington, DC fighting for issues relevant to all communities.

Should the dry conditions persist, the state could decide to transition to a water emergency phase. An act that can only be declared by the Governor, the final emergency phase would likely enforce mandatory water restrictions on all residents.

The Pipeline

In the coming months, we can expect the NJ Department of Environmental Protection to order modifications of water allocation permits, develop new alternative water supplies as necessary, conduct interconnection tests between water systems and most certainly initiate bulk water transfers between reservoirs.

New Jersey will need several months of average to above-average rainfall to bring our water supplies back to normal levels. If the dry months continue, the impacts are sure to compound when demand increases once more in the next spring and summer season.

Should you have any questions on the state’s drought status, please do not hesitate to contact me at the UTCA office at (732) 292-4300.

Sadly, the bright light at the end of the tunnel we are hoping for has yet to show. Weather experts are already predicting a dry winter, due to the presence of a slowly developing La Nina in the Gulf of Mexico expected to pull wet weather away from the east coast. At this time,

Utility & Transportation Contractor | december| 2024 69

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Representing Public Contractors in all Aspects of Construction Law For Over 85 Years

Congratulations to IEW Construction Group

McKee ...... . ·· ·•,;

On 100 Years!

www.McKeeRisk.com

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For more information about McKee and our Programs, please contact your independent insurance agent or:

Rich Bartlewitz, VP of Marketing - (484) 674-4070 - RBartlewitz@McKeeRisk.com

By: ryan sharpe, director of government affairs and communications

A

fter nearly twenty years in the insurance business, Clyde McKee III decided to launch his own insurance company and in 1999 he and industry partners launched McKee Risk Management which has a large footprint in the construction industry and offers specialized underwriting, claims, and risk control. Their successful business model is based on relationships with agents, brokers and carrier partners which, combined with specializing in certain industries, has helped them achieve remarkable success.

Headquartered in King of Prussia, Pennsylvania, McKee Risk has 67 employees throughout offices in Long Island, Connecticut, Chicago and in the Pacific Northwest. They are very active throughout the mid-Atlantic and Northeast, and they plan to continue to grow in markets which are seeing an investment in infrastructure.

Despite widespread mergers and acquisitions in the insurance industry in recent years, McKee Risk is proud to have bucked that trend which has allowed it to maintain its long-standing relationships that are key to its success. In fact, they note that they have worked closely with many of their clients during good times

Pictured left to right: Kayla Mesaros, Undewriting Service Associate; Monica Olsen, AVP Claims Specialist; Ireen Jafreen, Sr. Underwriting Specialist; Brandon Lopez, Sr. Risk Control Consultant; Brandon O’Hara, SVP Actuary; Kristin Zirpoli, AVP-Executive Underwriter; Marissa Paster, Claims Representative; John Warner, EVP-CUO; Clyde McKee IV, SVP Operations; Clyde McKee III, CEO-Chairman; Ed Andrescavage, SVP Claims Manager; Cynthia Milliman, SVP Compliance; Eileen Cartwright, VP Claims; Dan Hanson, Undewriting Service Associate; Robert Ivey, SVP Business Development; Tom Hennessy, Production Undewriter; Rich Bartlewitz, VP Business Development; Richard Riva, Sr. Production Underwriter; Donna Herbst, Associate Underwriter; Christine McClure, Associate Underwriter (Missing: Jeff Miller, President of Insurance Operations)

Feature Story

mckee risk management marks 25 years of offering specialized insurance, with focus on the construction industry

and bad and they are pleased to be growing in tandem with these firms during this period of unprecedented investment in infrastructure.

Since its founding, McKee Risk has provided services in five key specialties, but infrastructure construction continues to be its largest market. They credit their success in this field to the longstanding relationships with agents, brokers and contractors, many of which have existed for over 20 years. These relationships in which they get to know the insured and learn about their businesses, have resulted in much of their business coming through referrals from industry partners. Some of the best and longest standing partners are with: C&H Agency, Conner Strong & Buckelew, Construction Risk Partners, Graham Company/ MMA, Glenn Insurance and USI Insurance Services.

McKee also credits its involvement with industry organizations like UTCA, NUCA and ARTBA as key to its success, noting that it insures approximately twenty percent of UTCA’s members.

They are also regular participants in the UTCA Convention, and several members of the firm attend the Convention every year.

The firm is constantly seeking to anticipate new needs in the industry and recently launched a new operating platform and data warehouse that allows them to better analyze claims data to help clients identify and address loss issues. This knowledge helps provide clients with the right price for their exposure, thus ensuring they remain competitive in their field.

Top: Brandon O’Hara, SVP Actuary; John Warner, EVP-CUO; Clyde McKee IV, SVP Operations; Clyde McKee III, CEO-Chairman; Ed Andrescavage, SVP Claims Manager; Cynthia Milliman, SVP UW Quality & Compliance; Robert Ivey, SVP Business Development; Rich Bartlewitz, VP Business Development.

Bottom: Kristin Zirpoli, AVP-Executive Underwriter, Eileen Cartwright, VP Claims.

Investing in cutting-edge technology is also critical to McKee Risk’s success. They have invested in a new operating system for their internal functions which allows the firm to operate more efficiently and, in turn, to better serve its clients. Interestingly enough, the new system is being implemented by Clyde McKee’s son who used his background in the industry and expertise in business transformation to provide a blueprint for improving the

Utility & Transportation Contractor | december| 2024 75

Feature Story

company’s operations. The new platform was launched this past July in McKee’s construction practice.

Another priority at McKee Risk is investing in its staff in order to prepare for the future. They invest heavily in internships and actively seek to hire young professionals with an interest in the industry. In fact, 40 percent of those employed at the company are 35 years old or younger, and many of these younger staffers are in leadership positions.

Another unique part of the culture at McKee is that they actively recruit former athletes because they are well-versed in time management, appreciate the value of training and thrive in a com-

Kristin Zirpoli, AVP-Executive Underwriter; Kayla Mesaros, Undewriting Service Associate; Tom Hennessy, Production Undewriter; Dan Hanson, Undewriting Service Associate; Richard Riva, Sr. Production Underwriter; Christine McClure, Associate Underwriter; Ireen Jafreen, Sr. Underwriting Specialist; Donna Herbst, Associate Underwriter. (Missing: Paul Nicholsen, SVP Practice Leader; Leonard Markert, VP Practice Leader; Dawn Clemson, Associate Underwriter; Victoria DeLuca, Associate Underwriter)

fits, employees enjoy generous paid time off, company barbeques and lunches, and free membership in the company’s on-site gym.

The company also supports a number of charitable causes, such as Toys for Tots, Stockings for Soldiers and the American Heart Association.

Ed Andrescavage, SVP Claims, Marissa Paster, Claims Representative; Brandon Lopez, Sr. Risk Control Consultant, Monica Olsen, AVP Claims Specialist, Eileen Cartwright, VP Claims (missing Dan Niewoehner, Vice President Risk Control Services)

Looking into the future, McKee plans to continue to expand their product offerings, increase capacity and utilize innovative technology to benefit both its existing and new clients. In addition to continuing to serve its existing client base, including those in the construction industry, they also plan to keep expanding into new territories.

petitive environment. In addition to benefiting the company’s softball and soccer teams, these skills serve them well at McKee Risk which also “plays to win” in running their business.

It’s clear the culture they have cultivated at McKee Risk has played an instrumental role in the firm’s success over the past quarter century. This unique culture, combined with their specialization, extensive knowledge and quality product offerings have McKee Risk well-positioned to continue its success and growth for many years to come.

McKee’s focus on creating a dynamic team culture helps them attract and maintain some of the most talented people in the field.

In addition to providing highly competitive salaries and bene-

Congratulations to McKee Risk on achieving this significant milestone and we are excited for what the future holds for this outstanding firm.

76 Utility & Transportation Contractor | december| 2024

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Assurance Tax Advisory RMG has been providing a full range of services to the construction industry for over three decades.

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Congratulations to IEW Construction Group celebrating 100 years in business.

Congratulations to McKee Risk Management celebrating 25 years in business.

Big Firm Capability.

Personalized Service.

354 Eisenhower Parkway, Suite 2950, Livingston, NJ 07039 rmgcpallc.com 973-712-5000

CONGRATULATIONS TO:

IEW

CONSTRUCTION GROUP 100 Year Anniversary

McKEE RISK MANAGEMENT Celebrating 25 Years in Business

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ALLIANT IS THE NATION'S LEADING SPECIALTY BROKER FOR CONSTRUCTION INSURANCE AND SURETY In the face of increasing complexity, our approach is simple: hire the best people and invest extensively in the industries and clients we serve. We operate through one national platform, so clients have access to our resources and expertise - regardless of where the resource is located - to capitalize on new opportunities to grow and protect their organizations.

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scott.brackenbury@alliant.com

john.hunter@alliant.com

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CELEBRATING 100 YEARS

Congratulations IEW Construction Group on 100 years in business!

Frotn, your friends at West Bay

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beware 1094 and 1095 irs enforcement By: john depalma, mph managing director, employee benefits consulting services group (a division of gente) Understanding ACA Reporting: Compliance, Challenges, and Consequences The Utility, Construction & Trade industry faces unique ACA (Affordable Care Act) compliance challenges, especially when dealing with employees with Variable Hours or Union Status.

These workers don’t fit neatly into full-time or part-time categories, making it difficult to determine their benefits eligibility and accurately report it to the IRS. Missteps in this area can be costly and create compliance issues for the business.

Why ACA Reporting Matters for UTCA Employers Under ACA rules, employers with 50 or more full-time employees, including full-time equivalents, must report on health insurance coverage offered—or not offered—to employees.

Smaller employers may also have reporting requirements if their health coverage is Level-Funded or Self-Funded. Navigating these guidelines can be complex, especially with state reporting requirements. As businesses grow, understanding and fulfilling these obligations is essential to avoid potential compliance issues.

For businesses with Variable Hour workers, such as contractors with work shifts that vary with demand, it can be tricky to keep accurate records of hours.

Misclassif ying these workers or failing to track hours properly can result in substantial penalties.

Common Penalties and Risks There are specific penalties for ACA reporting errors:

NEWS

it can be a major hit to your financial bottom line 1. Failure to File: Not filing required Forms 1094-C and 1095-C with the IRS can result in penalties of $330 per form for the 2025 tax year.

2. Failure to Furnish: Not providing employees with their Form 1095-C carries an additional $330 penalty per form, with potential total penalties reaching millions.

Additionally, even fully compliant employers can receive IRS notices if an employee received a subsidy for health insurance through the exchange. This can happen when coverage is deemed unaffordable or doesn’t meet minimum standards, so it’s crucial to track and report accurately.

The Role of Payroll Systems in ACA Reporting Many construction employers rely on payroll systems to handle ACA reporting. However, payroll software depends on accurate data inputs from employers, such as settings that determine employee classifications and eligibility, or the definition of a plan as Minimum Value or Minimum Essential Coverage. These settings

Name of Taxpayer

Year/Period Ended

ABC CO. INCORPORATED

2022

GOVERNMENT POSITION: Since there was no response from the Employer to the inquiry letters showing that the returns were either filed or the employer was not required to file the information returns penalties under IRC 6721 and 6722 are being proposed for 2022:

IRC 6721 IRC 6722 -

Failure to File: $300,120.00 Failure to Furnish: $309,150.00

The Service determined the employer filed 1,034 Form(s) W-2 for 2022.

The failure to file penalty is calculated using the number form(s) W-2 filed since we do not have information indicating how many full-time employees whould have received a form 1095-C. Plus one for the failure to file the form 1094-C Transmittal.

Utility & Transportation Contractor | december| 2024 83

NEWS

directly impact how employees and plans are coded on ACA 4. Verify ACA forms before submission to prevent costly penforms. Since ACA reporting can be complex, errors are common; alties. it’s wise to have the information verified by an ACA-compliance Navigating ACA compliance can be challenging for UTCA emexpert to avoid potentially costly mistakes. ployers, but these proactive steps can greatly reduce compliance Preparing for Increased IRS Scrutiny risks. The IRS offers specialized tracking solutions for eligibility that employers can adopt to stay compliant. Partnering with a With the IRS recently securing $80 billion in funding to enhance knowledgeable third party or benefits administrator can also encompliance monitoring, ACA reporting will likely face higher sure accurate, worry-free ACA reporting, allowing you to focus on scrutiny due to the high revenue yields from its enforcement. running your business.

UTCA members should be proactive, as the IRS will have more resources to track compliance and identify reporting errors, po- The Gente Organization has this expertise and is willing to review tentially leading to faster audits and notices. your submissions to be certain they are correct. We will provide this service at no charge to your organization. A redacted IRS Moving Forward & Solutions document that an employer received requiring payment to the IRS of $640,360 for failure to file and not furnishing notices is shown 1. Review each Variable Hour worker’s status to ensure they’re on the previous page. The Gente Organization was engaged and tracked and reported correctly. resolved this issue with the IRS to the satisfaction of the client.

2. Ensure payroll settings are up-to-date for accurate employee Please call or email with any questions to John DePalma at jdepalclassification. ma@ebcsg.com or 973 646 1202.

3. Double-check affordability and minimum coverage standards to avoid IRS subsidy notices.

84 Utility & Transportation Contractor | december| 2024

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CONGRATULATIONS TO: IEW Construction Group 100th Anniversary &To: McKee Risk Management Celebrating 25 Years in Business

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By: karen walsh, senior account executive – Employee Benefits, IOA

T

he unhappiness that many employees have consistently been feeling since 2020 reached an all-time low in the second quarter of 2024, according to BambooHR. This period, called the “Great Gloom,” reflects the widespread disengagement, burnout and workplace dissatisfaction experienced by U.S. workers in recent years.

Unlike the “Great Resignation,” where waves of employees voluntarily left their jobs during and after the COVID-19 pandemic, the Great Gloom indicates a more passive but pervasive sense of dissatisfaction and disengagement among workers. While employees are less inclined to quit their jobs than in previous years, employers are struggling to engage their workforce effectively.

The rise in employee discontent could lead to higher turnover rates and decreased productivity for organizations. Keep in mind that a recent 2024 Ernst & Young survey revealed that nearly 2 out of 5 employees are likely to quit their jobs in the next year. As such, it’s crucial for employers to implement strategies to engage their workforce and anticipate rising employee quit rates in 2025.

Why are Employees Unhappy?

Several factors have collectively driven a steady decrease in employee happiness. Persistent layoffs have created job insecurity and dissatisfaction. Inflation has added financial strain, as many workers report that their wage increases aren’t keeping up with the rising cost of living. Inadequate compensation, especially in sectors like health care, has also left many workers feeling undervalued. Furthermore, ongoing debates over remote work and mismatched work expectations have fueled dissatisfaction.

Ways You Can Help to Engage Employees Engaged employees are satisfied with their jobs and usually speak highly of their organizations. They tend to be more productive and better prepared to meet challenges. Moreover, happy employees encourage co-workers to do their best and are more likely to remain with their organizations than those who are dissatisfied.

Consider these strategies to help engage employees during challenging times: • Recognize achievement regularly. Acknowledge top performers during team meetings and companywide announcements.

• Conduct weekly check-ins. Managers can hold recurring meetings with employees to listen to their concerns and offer support.

NEWS

end of year benefits wrap-up engaging employees during the great gloom • Provide flexibility. Offer remote or hybrid work options and adjustable work hours to allow employees to balance family commitments and pursue personal interests.

• Offer professional development. Provide learning and development opportunities to grow employees’ skill sets and boost their confidence.

• Promote work-life balance. Implement physical and mental wellness programs to show empathy for employees’ well-being.

• Build camaraderie. Offer team-building activities that give employees something to look forward to and a sense of belonging.

• Foster a culture of transparency. Clearly communicate the rationale behind management decisions and let workers participate in the decisionmaking process.

• Instill a sense of purpose. Help workers understand how their efforts align with the organization’s objectives and positively impact the broader community.

Employers who proactively create a supportive work environment and make meaningful improvements to the overall employee experience will likely benefit from a more engaged and productive workforce.

Employee Retention Trends in 2025 As we begin to wrap up 2024, let’s look ahead to some of the attraction and retention trends to monitor in 2025.

Employers will likely continue to struggle to attract and retain talented employees in 2025. Although employee quits have trended down in 2024, employers still need to keep focus on maintaining a talent advantage. Here are a few trends employers should watch as they prepare strategies for the upcoming year.

• Artificial Intelligence (AI) and Automation AI and automation are undoubtedly changing the future of work. AI’s functions have led many employers to equip workers with such tools or incorporate this technology into their organizations to enhance workflows. Employers have integrated AI into several job roles. A recent World Economic Forum report found that, by 2025, machines and algorithms will perform more current work tasks than humans.

However, it also suggested that AI will create 97 million new

Utility & Transportation Contractor | december| 2024 89

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jobs by 2025, especially in areas such as data analysis, software development and cybersecurity. AI in the workplace enables workers to focus on more engaging tasks, be more efficient and innovative, make better-informed decisions and address complicated challenges. While some mundane jobs are at risk of AI or automation, experts generally agree that more jobs will enter the labor market because of growing technologies. This means that many of the jobs that they’re hiring for in 2025 and beyond may require more advanced skill sets.

• Increasing Demand for Weight Loss Drugs It is estimated that 9% of the U.S. population could be on glucagon-like peptide-1 (GLP-1) drugs by 2030. The medications were traditionally used to treat diabetes but are now in demand for weight loss. As organizations develop their offerings for 2025, more employers are being pressured to cover GLP-1s for weight loss. Since GLP-1 treatment costs, on average, around $1,000 per individual each month, workers may be looking for employer-sponsored coverage for weight loss drugs and make their employment decisions based on such offerings.

When considering covering weight loss drugs, many employers are concerned that they must be used for extended periods to be effective, requiring a long-term commitment. Furthermore, covering these medications can have a significant impact on medical premium rates. As more employers include GLP-1s for weight loss in their benefits offerings to match employee interest and demand, it’s important to consider the pros

90 Utility & Transportation Contractor | december| 2024

and cons of matching such benefits as they compete for talent.

• Return to Work is Trending Up Workplaces have gradually been shifting back to the way they were before the COVID-19 pandemic. In fact, the Jones Land LaSalle’s Future of Work survey revealed that the number of organizations expecting employees to work on-site full time surged to 44% in 2024 compared to 34% in 2022. According to the survey respondents, 95% of employers now require employees to be on-site at least one day per week. More employers worldwide are becoming “office advocates,” scaling back flexible work policies and mandating five-day in-office workweeks. Meanwhile, the percentage of “hybrid adopters,” or those who allow employees to work from home at least once a week, dropped from 77% in 2022 to 56% in 2024.

Several high-profile companies have already implemented stricter return-to-office policies. For instance, Amazon recently announced that starting January 2025, corporate employees will be required to work in the office five days a week, up from its previous three-day requirement. This comes after major companies like Boeing and UPS started requiring full-time office participation. With the job market stabilizing, employers now have more leverage over workers and are increasingly requiring in-office work. Yet, as the push for full-time in-office work continues, it’s essential for employers to balance business needs with employee preferences.

WOOLSTON, JENSEN & McNAMARA ACCOUNTING

TAX

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CONSULTING

WHEN EXPERIENCE MATTERS THE MOST WJM is dedicated to

CONGRATULATIONS!

providing its clients with exceptional professional

IEW Construction Group

and personalized service.

Celebrating 100 Years in Business

McKee Risk

• RELATIONSHIP DRIVEN • DEEP INDUSTRY KNOWLEDGE

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MANAGER

KDONOVAN@WJMCPAS.COM

MHENRICH@WJMCPAS.COM

200 SCHULZ ORNE. SUITE 3021 RED BANK, NJ 07701 P. 732-542-04441 F. 732-389-24441 WWW.W]MCPAS.COM

✓1

Constructing A Better New Jersey Through Transportation And Utility Construction" Utility Contractors Industry Advancement Fund Your Industry Advancement Dollars At Work: ❖ ❖ ❖ ❖ ❖ ❖

County College Construction Technology and Engineering Scholarships College Engineering Internships and Scholarships Public Education Messaging Highlighting The Benefits of Inf rastructure Investment NJDOT Specifications Improvements Funded Nationally-Recogni=ed New Jersey Economic Study On Infrastructure Investment Funded Public Research On Infrastructure Investment Options

EST.1965

UTCA of New Jersey PO Box 728 ❖ Allenwood, NJ 08720 www.utcanj.org

Gerard Burdi - President, UTCA Phil Schifano - Chairman, UCIAF Robert A. Briant, Jr. - CEO, UTCA Dave Rible - Executive Director, UTCA

Is your company exposed to Fines & Penalties?

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Investor Disclosures

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IEW Construction Group celebrating 100 Yearsl and Mckee Risk Management celebrating 25 Yearsl

PEACE, HAPPINESS, AND HOPE FOR A BRIGHTER NEW YEAR Wishing you a holiday season filled with peace and happiness. May the spirit of the holidays lead us toward a brighter, kinder new year.

Sal Schibell, CPA, CFP®, MS Taxation, MBA CPA and Profit Improvement Expert

LAWSON RESCINIO SCHIBELL Driven to Help You Succeed (732) 539-7328 • salschibell@lrscpa.com • LRSCPA.com

NEWS

disparity study-based legislation treats the symptoms, not the cause By: dave rible, executive director

O

ver the past year, UTCA has been engaging with legislators and key staff on a study that found racial and gender disparities in state contracting. This study resulted in legislation that seeks to address these disparities by increasing state agency goals for disadvantaged businesses.

Further, the anecdotal data section of the study confirmed that the disparities in State construction contracting are largely due to onerous State regulatory requirements, industry practices that are applicable to all businesses, and a shortage of MWBE able to bid and perform State construction contracts.

UTCA opposed these efforts to enact arbitrary quotas that fail to address the main cause of the lack of participation of minority and women-owned businesses in the industry which is largely a result of the significant financial resources necessary to operate a construction business.

It is also important to note that state and federal MWBE participation goals have existed for many years and state agencies implement various methods to ensure compliance. In fact, there are many instances of bid awards being rescinded for even minor technical deficiencies related to MWBE requirements. As such, the infrastructure construction industry is already subject to strict scrutiny of its efforts to meet MWBE participation goals.

In an attempt to educate both the public and policymakers about these issues, I crafted the article below which details our concerns with this legislation and reiterates our willingness to work with lawmakers to craft meaningful solutions to this issue.

Well-meaning but faulty legislation sometimes makes its way through the halls of Trenton. A new bill, A4586, known as the "Minority and Women-Owned Businesses State Contractor Remedies Act," is just such a bill. It proposes to tackle an issue but comes far short of dealing with the underlying reasons for the problem. This legislation is a classic case of treating the symptoms but not curing the disease. If we are really going to address these problems, we have to tackle the root causes.

A4586 establishes benchmarks for the awarding of construction contracts to minority and women-owned businesses (MWBE).

These benchmarks have been created after a disparity study released earlier this year by the State of New Jersey showed that most of these public contracts did not go to minority and women-owned firms.

Creating more opportunities and equity within the industry is an effort we applaud. We join other associations and industries in saying this needs to happen. But this legislation is not going to do that.

The disparity study that is driving this bill, as well as other bills proposed on this issue, is based upon faulty comparisons that fail to consider the root causes of the disparities in state construction contracts. Generally, New Jersey requires construction contracts over $17,500 to be publicly bid and awarded to the lowest responsible bidder. This is a wholly transparent and fair system in which the qualified, responsible bidder who submits the lowest price must be awarded the contract.

Addressing racial and ethnic disparities by setting participation goals has been largely unsuccessful because it does not address the reason why few minority contractors bid on state construction contracts. In fact, the unfortunate reality is that there are few MWBE that meet the qualifications required to bid as a general contractor on public works projects.

One of the biggest drivers of disparities in State construction contracts is the significant financial resources necessary to establish and maintain a business in this highly competitive industry, such as the purchase of costly equipment and the need to secure expensive insurance and bonds.

The ability to secure capital is also crucial and limited bonding capacity often presents a challenge for those seeking to bid on public works projects. It is important to note that performing a public works project often requires contractors to go several weeks and even months without receiving payment for their work. Banks are often less than eager to provide a line of credit for this type of venture. As such, this may be an area in which the state could provide resources that would effectively level the playing field for MWBE contractors.

Increasing access to capital, reducing the financial burdens placed on business owners and streamlining the contracting process are just some of the many avenues that should be considered as solutions to disparities in State construction contracts.

Public works projects are critical to the State’s safety, economic well-being, and quality of life, and ensuring our infrastructure resources are used efficiently and effectively is of paramount importance. Enacting arbitrary MWBE requirements without

Utility & Transportation Contractor | december| 2024 97

NEWS

considering the relative capacity, availability, and current partic- We agree with the laudable goals of this bill. We do not, ipation rate of minority and women-owned firms could unduly however, believe it is the best approach. Access to capital and increase the cost of these vital, taxpayer-funded projects. limited bond capacity are at the heart of the problem. We should be aiming for solutions there before setting benchThe infrastructure construction industry is committed and ea- marks that may still not be achievable. ger to increase the participation of minority and women-owned businesses in State construction contracting. We want to work David Rible is Executive Director of the Utility and Transporwith policymakers to craft solutions to this issue. We also want tation Contractors Association of New Jersey. to acknowledge and thank the sponsor of this legislation, Assemblywoman Shavonda Sumter, for her willingness to discuss concerns with the bill. We may disagree with the approach to this problem, but we appreciate her making herself available and her willingness to consider different viewpoints.

98 Utility & Transportation Contractor | december| 2024

CONSTRUCTION CORP.

UNDERGROUND UTILITY CONTRACTOR

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Michael E. Hellstrom, Vice President and Regional Manager LIUNA Eastern Region 11 Tower Center Boulevard, 24th Floor, East Brunswick, NJ 08816

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Congratulations on 100 Years in Construction!

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