As we progress through these busy summer months both individually as members and together as an association, three things are on my mind. Those three things include: the ever-growing and dynamic “Emerging Leaders” committee, the upcoming Annual Convention, and then my gratitude to those that I’ve had the absolute pleasure of working beside over this past year as I’ve served as the UTCA’s president.
Looking back at this past year, I’ve not yet commented within this column upon the Emerging Leaders committee and structure that has absolutely expanded its membership, its breadth of topics that it pursues, and its clear benefits to those individuals that are serving within it. I recall some years back as that year’s executive committee was contemplating staff succession planning, we felt the need to concurrently address Board of Director (BOD) succession planning, as many of our BOD members were approaching a time when we would turn over our companies and BOD participation to next generation leaders.
A key strategy that was formulated from those discussions was the promotion of the Emerging Leaders committee as a springboard and proving ground for those next-generation leaders to ready themselves for UTCA BOD participation. Since that time, this committee has flourished with greater industry action added to its already dynamic social and fellowship events. Having listened in on several of this group’s recent meetings, I have boldly advised the BOD about just how successful and dynamic this group’s events and meetings have become, and how informative, bright, and engaged its members are. If you or people at your firm are “emerging” as leaders and anxious to grow into leadership within our industry, please contact the Association office to learn more about the committee.
Next, as September nears, I am very much looking forward to what new innovations I will learn about and what networking opportunities I will have at our Annual Convention. This year’s event promises to bring a wide range of both.
Key agenda elements include: events again at the Tropicana (UTCA varies this with the Borgata as our participants are mixed in which location they most enjoy; the convention will be at the Borgata next year), terrific Associate participation in the exhibit hall (again sold out this year), a captivating keynote speaker who has transformed his life from that of a former outlaw and thug to one that now has him dedicating his life to the rescue of children in war zone countries such as South Sudan and the Congo (his life is portrayed in the movie Machine Gun Preacher starring Gerard Butler), and ample networking opportunities like the opening day golf outing (Thursday), the Opening Reception, and the President’s Reception/PAC Auction on Friday night.
During the course of the Convention, this year’s award winners will be recognized. Congratulations to Tom Anselmi as he will be inducted into the UTCA Hall of Fame, to Roly Acosta who will receive the prestigious Robert A. Briant, Sr. Memorial Award, and to Ron Tobia who will receive the Larry Gardner Memorial Award.
In this my last “from the President” message, I want to thank all those that have worked so hard to support and move our industry forward over these last months. During this year, I have learned firsthand just how capable, focused, and energized our UTCA staff is. They work tirelessly and unceasingly on behalf of our members to move the association and our industry forward. It has been an absolute pleasure to work alongside them this past year and to be drawn forward by their momentum and expertise in all things construction. Plus, their humor and spirit are always uplifting and make me smile. Likewise, I want to thank our executive committee and the BOD for their hard work in leading committees, subcommittees, and even collective thoughts on issues that arose over these last months. Their knowledge, energy, and pursuit of the association’s common good have been an inspiration to me. The already-defined lineup of successive upcoming UTCA presidents is awesome and promises to take us to ever-new heights. I want to specifically wish next year’s president, Gerard Burdi, the best of luck and success. I also want to thank him for all his support over this past year as we partnered together in a number of endeavors – he is a respected and wise voice amidst our industry. I also thank all of you who have served on any of our committees, sponsored and supported events, pushed non-members to join, or attended this year’s events. Again, heartfelt thanks to all of you who lead.
Lastly and speaking of leadership, J. Fletcher Creamer and Sons is featured in our cover story as they celebrate an incredible 100 years of construction. Congratulations to them on this awesome accomplishment and for the ways they have contributed to this association!
Stay safe as you lead your organization through the rest of this summer. Enjoy this issue!
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
The 401(k) landscape is constantly evolving, driven by regulatory changes, and shifting employee expectations. For employers, it is crucial to stay ahead of these changes to ensure they offer competitive retirement benefits and meet their fiduciary responsibilities. In this article, I will discuss strategies employers can adopt to navigate the changing 401(k) landscape effectively.
This is the most important in my view and one that unfortunately many employers don’t have a clear understanding of. Fiduciary duty requires acting solely in the best interests of plan participants and beneficiaries. It involves prudently selecting and monitoring service providers, ensuring that fees are reasonable, and offering diverse investment options. By prioritizing fiduciary responsibility, employers not only protect their employees' interests but also mitigate potential legal and financial risks.
Regularly documenting fiduciary decisions and maintaining accurate records is essential for demonstrating compliance with fiduciary obligations and will be valuable data during an audit. As a co-fiduciary to corporate 401(k) plans, my firm holds clients accountable in several ways; one simple example is we mandate that 401(k) committees maintain “meeting minutes”. This brief document lists who attended quarterly reviews, what action items are still open or have been recently closed, a review of the discussion points during the meeting, and any new action items that need to be addressed.
Employers should regularly review and update their 401(k) plan to ensure it aligns with current regulations and best practices. Your third-party administrator (TPA) should keep you informed about legal changes, such as tax laws, contribution limits, and compliance requirements, and update the plan document accordingly.
Your co-fiduciary advisor should conduct a thorough analysis of plan fees and benchmark them against industry standards at least annually. During quarterly 401(k) committee meetings, they should also be evaluating your investment options, considering factors like performance, fees, and diversification. By conducting these periodic plan reviews, employers can identify areas that require adjustments and keep their 401(k) offerings competitive.
Under the SECURE 2.0 Act of 2022, employers who started new 401(k) plans after December 29, 2022 will be required to automatically enroll employees in their plan at a rate of at least three percent, but not more than 10 percent of eligible wages (this requirement will begin for those plans in 2025). New companies (in business for less than three years) and employers with 10 or fewer workers are excluded from this requirement. Also beginning in 2025 under the Act, for new retirement plans started after December 29, 2022, contribution percentages must automatically increase by one percent on the first day of each plan year following completion of a year of service until the contribution is at least 10 percent, but no more than 15 percent of eligible wages.
Existing 401(k) plans are grandfathered and do not need to incorporate this feature, although they should consider it. Automatic enrollment and escalation features can boost plan participation, especially among younger employees who may not proactively enroll. Employers who decide to opt in should work with their advisors to communicate the benefits of these features to employees and provide educational resources to help them understand the long-term advantages of saving early and consistently.
In today's ever-changing economic landscape, employers are recognizing the critical role of financial wellness programs in supporting their employees' overall well-being. Financial stress can negatively impact employees' productivity, engagement, and overall mental health. Implementing robust financial wellness programs can help alleviate these concerns and contribute to a more satisfied and focused workforce.
By offering group educational workshops, one-on-one support, and utilizing your recordkeeper’s online tools, employers can empower employees to make informed financial decisions. This increased financial literacy leads to greater financial confidence, reduced stress, and enhanced overall well-being. These programs can also serve as a valuable tool in attracting and retaining top talent in a competitive job market.
Roth 401(k) plans have gained popularity with employers in recent years, but I find they are still critically underutilized by employees. Roth 401(k) contributions are made after-tax, allowing
for tax-free qualified withdrawals in retirement. By providing this choice, employers cater to employees' diverse tax planning needs and preferences. Without education, however, employees may never come to appreciate that. Employees who anticipate being in a higher tax bracket during retirement, for example, may find the Roth 401(k) option more advantageous. For those who are unsure, a combination of contributions to both the traditional and Roth 401(k) can diversify their tax strategies. Offering both traditional and Roth options greatly expands the flexibility and appeal of your 401(k) plan.
In a rapidly changing 401(k) landscape, employers must proactively adapt to evolving regulations and employee expectations. Regular plan reviews, embracing automatic features, providing education, and offering diverse options will help employers in providing competitive retirement benefits to their workforce.
Mountain Hill Investment Partners is a UTCA member firm. We work as an advisor and co-fiduciary to corporate 401(k) plans, specializing in the construction industry. We work with many firms to enhance their 401(k) offering and build education programs designed to engage employees. We appreciate that each company is unique, and we take the time to understand how you operate 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.
In the recent unpublished case Constructural Dynamics, Inc. v.Arch Ins. Co., 2023 WL 3701396 (App. Div. 2023), the Appellate Division decided an insurance coverage case pertaining to the scope of several exclusions in commercial automobile insurance policies. Specifically, the Appellate Division reviewed (1)the “care, custody or control” exclusion; (2) the “handling of property” exclusion; and (3) the “completed operations” exclusion. The Appellate Division heard the appeal after defendant Arch Insurance Company appealed two separate trial court orders denying its motion for summary judgment and granting Plaintiff’s motion for summary judgment and awarding money damages. In its decision, which addresses a rather unique set of circumstances, the Appellate Division remarked that it was unaware of any New Jersey case which addresses the unique circumstances of the contamination of material in transit, which then affects other incorporated property.” Id. at 5.
In August 2013, a trucking company, MJF, was hired to deliver salt to a New Jersey Department of Transportation facility. Id. at 1.MJF failed to properly clean the six trucks which were used in the delivery, thereby leaving salt residue in the cargo areas of the vehicles. The next day, MJF used these same vehicles to deliver concrete aggregate. Id. As a result, the salt residue that had been left in the trucks mixed with the aggregate during transit. The contaminated mixture was then deposited from the trucks into "hoppers" at Silvi's concrete plant. This contaminated aggregate was used to mix a batch of concrete for the construction of a warehouse floor. Approximately one month after the floor was installed, it began to show signs of corrosion and discoloration. A later inspection revealed concentrations of dissolved salt in the concrete requiring its removal and replacement along with all related systems and fixtures. Id.
In December 2014, Silvi sued MJF in the United States District Court for the Eastern District of Pennsylvania, seeking damages incurred to "remove and replace the contaminated concrete and remediate all associated damages." Id. MJF then notified Arch, which had issued MJF a $1,000,000 commercial automobile policy that covered all sixteen of MJF's vehicles, including the trucks that delivered the aggregate to the warehouse project, and requested it defend and indemnify MJF with respect to Silvi's underlying claim. Id. Arch rejected MJF's tender and claimed its care, custody or control, handling of property, and completed operations exclusions barred coverage. Following a trial, a jury returned a verdict in favor of Silvi. MJF thereafter assigned its rights under the Arch policy to Silvi.
There were three exclusionary provisions which limited MJF's ability to recover for accidental property damage: (1) Under the care, custody or control exclusion, Arch refused to cover “ ‘property damage’ ... involving property owned or transported by the ‘insured’ or in the ‘insured's’ care, custody or control.” (2) It also did not insure, under the handling of property exclusion, “ ‘property damage’ resulting from the handling of property ... [b]efore it is moved from the place where it is accepted by the ‘insured’ ... or [a]fter it is moved from the covered ‘auto’ to the place where it is finally delivered by the ‘insured.’ ” 3) Finally, the completed operations exclusion precludes coverage for “ ‘property damage’ arising out of ‘your work’ after that work has been completed or abandoned,” and defines your work as “[w]ork or operations performed by you or ... [m]aterials, parts or equipment furnished in connection with such work or operations.” Id. at 2.
Since Arch refused to cover the underlying losses, Silvi filed a declaratory judgment action seeking indemnification as well as damages for Arch's breach of contract. Arch later moved for summary judgment and asserted it had no duty or obligation to defend or indemnify MJF based on the aforementioned exclusions. Silvi also moved for summary judgment. The Court granted Silvi summary judgment and issued a separate order denying Arch's motion.
In its decision, the trial court determined the underlying judgment related to property damage “caused by an ‘accident’ and resulting from the ownership, maintenance or use of a covered ‘auto.’ ” Id. at 2. The court also found, based on the jury verdict, that MJF was negligent in its contamination of the aggregate, which constituted a covered “accident” under the policy. Id.
The Appellate Division reversed, and agreed with Arch’s argument that two exclusions from the Arch policy were applicable to this claim: the handling of property and completed operations exclusions. Id. at 9. The handling of property exclusion ordinarily precludes insurance coverage for injury or accidents that occur prior to delivery or following delivery by the insured. See Motor Carrier Liability, ¶ 1821 B. In reviewing the handling of property exclusion, the Court examined the plain language of the policy. Id. at 7. The Court remarked that under the plain language, this exclusion precludes coverage for accidents or damage which occur before property is placed in the covered auto, or after property is removed from the covered auto. The Court highlighted that MJF finished unloading the aggregate when it deposited the material into Silvi's hoppers and left the facility.
Although MJF deposited the contaminated aggregate directly into Silvi's hoppers, “at that point, the concrete was not mixed or poured, and accordingly the damage to the warehouse floor had not occurred.” Id. at 7.
In its decision, the Court noted that insurance policies are to be “construed liberally in [the insured's] favor” to provide coverage “to the full extent that any fair interpretation will allow.” Id. at 4, citing Longobardi v. Chubb Ins. Co., 121 N.J. 530, 537 (1990) Meanwhile, courts hold that exclusionary provisions should be strictly construed, Simonetti, 372 N.J. Super. at 429, leaving the burden on the insurer “to bring the case within the exclusion,”
Flomerfelt v. Cardiello, 202 N.J. 432, 442 (2010) (quoting Am. Motorists Ins. Co. v. L-C-A Sales Co., 155 N.J. 29, 41 (1980)).
The completed operations exclusion precludes coverage for claims arising following an insured's completion of its contracted work. Id. at 8, citations omitted. In fact, completed operations clauses are “seen as the counterpart of products hazard coverage for a service company,” and are usually “intended to apply to work performed on other's premises, such as construction or maintenance work.” Rhone-Poulenc Rorer Inc. v. Home Indem. Co., 832 F. Supp. 114, 118 (E.D. Pa. 1993). The Appellate Division agreed with Arch’s argument that the completed operations exclusion applied because MJF finished its contracted work, specifically its delivery of the aggregate to Silvi, before any damage to the concrete and the warehouse floor occurred. The Court also noted how it was undisputed that MJF fulfilled its contracted work upon its delivery of the aggregate. Since the damaged concrete and costs to replace the warehouse floor formed the
core of Silvi's claims, the Court held that this exclusion applies to Silvi's coverage claims, as the creation of the concrete and the warehouse floor occurred well after MJF completed its delivery. Id. at 9.
The Appellate Division disagreed with Arch’s position that the “care, custody, or control” exclusion was applicable. Id. at 9. With regard to this exclusion, the Appellate Division found it critical that at no point did MJF have “possessory dominion,” over the concrete, Silvi's plant, or the warehouse which form the core of its claims. Id.
It is highly recommended that cargo haulers work with their insurance agents to ensure that they have appropriate insurance which will cover for their completed operations and for handling of property. While New Jersey courts typically find that insurance policies should be construed liberally, courts will still uphold exclusions so long as the insurer can bring the claim(s) within the exclusion(s). Constructural Dynamics is an unpublished opinion which addresses a unique set of circumstances and specific policy language. While other courts might reach different decisions under different sets of circumstances, it is very important for insureds to note that their claims might be denied under certain exclusions pertaining to completed operations and handling of property.
About The Author . . .Craig B. Novak, Esq., is an associate at the firm of Florio, Perrucci, Steinhardt, Cappelli, Tipton & Taylor. He may be contacted at cnovak@floriolaw.com
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WilliamC. McNamara,CPA, CCIFP� KevinP. Donovan, CPA, CCIFP® LynnA. Conover, CPA, CFBA Partner SeniorAuditManager TaxPartner bmcnamara@curchin.com kdonovan@curchin.com lconover@curchin.com
By: william c. mcnamara, cpa, ccifp, the curchin group, llc
Is 2023 half-over or half-begun? Let’s go with the latter. That’ll allow us to focus on finishing the year strong.
Remember, mid-year is the time to make end-of-year planning less stressful. Have your summer fun but keep up with your accounting while you’re at it so you can wind down during the holidays instead of feeling all wound up. Keep an eye on your cash flow, evaluate your debt, revisit your goals, and consider any potential capital acquisitions. It’s also important to be aware of new tax laws, market trends, and government-funded projects as they relate to your business. Here’s the latest from NJ, D.C., and in the market at large:
Plans to build a new, two-track Hudson River rail tunnel between the Bergen Palisades in New Jersey and Penn Station in Manhattan are now in the engineering phase with a newly announced $6.8 billion federal grant to help cover the $16 billion Gateway Project. NJ Senator Bob Menendez called it “a massive step forward for the most important infrastructure project in the country.”
There are other key pieces to the Gateway Project, such as rehabilitating the existing North River Tunnel, but the new tunnel is the headliner that we’ve all been talking about. Construction should be well underway by this time next year and will create a ripple effect of opportunities for any and every UTCA member to identify, evaluate, and potentially pursue, whether as a direct contractor or subcontractor. That ripple effect will extend to the long term as the new tunnel drives housing development, job creation, and economic growth in the region.
NJ passed its new budget on June 30, 2023, for FY2024, coming in at $54.3 billion in total spending. It’s the largest budget in the state’s history. The increased spending and $8 billion surplus will enable the state to do away with the 2.5% surtax currently imposed on Corporation Business Tax (CBT) filers with allocated taxable net income over $1 million. Back in 2021, when the surtax was supposed to decrease and then expire in 2022, it was extended to remain at 2.5% through 2023. It’s nice to see that it will indeed be left to expire at the end of 2023 and not be extended again. Starting in 2024, the CBT in NJ will go back down to a flat 9%.
NJ’s FY2024 budget also includes a new program called StayNJ, which provides tax relief to seniors to incentivize them to stay in NJ rather than leave for more tax-friendly states. It was a sticking point during budget negotiations but made it through the final cut. In the current economy, StayNJ will take some time to ramp up, possibly past NJ Governor Phil Murphy’s term, before the state can fully follow through on the proposed plan to give homeowners 65 and older who make $500,000 or less up to $6,500 in property tax credit. Renters would get up to $700 in rebates. StayNJ seems to be somewhat of an admission by state leaders that they need to make NJ a more financially attractive place to retire (particularly when it comes to property taxes), or residents will continue to flock south not just for winter, but permanently.
We’re on the right side of the CBT surtax sunset provision, but the wrong side of a separate sunset provision for a tax law that has been advantageous to construction companies for years. The Tax Cuts and Jobs Act of 2017 allowed immediate 100% bonus depreciation on qualified assets, including construction equipment and heavy machinery. In 2023, the deduction drops to 80%. It’ll then drop by 20% each year until it hits 0 in 2027. If you have your sights set on certain equipment purchases, you may want to make those purchases and, more importantly, place that equipment into service, sooner rather than later to get the higher bonus depreciation for the year in which the equipment is implemented.
With mortgage interest rates more than double what they were just 24 months ago, assumable mortgages are becoming more common in what has been an epic seller’s market. These programs have always been around, but they’re relatively complex
and therefore aren’t as prevalent in buyer’s markets. Essentially, a buyer can assume a seller’s mortgage at the seller’s locked in rate to sidestep higher current rates. Right now, that’s the difference between getting, say, a 30-year-mortgage at a 3% interest rate with a few years already paid vs. a new 30-year-mortgage at north of a 6.5% rate. If you’re selling or buying a home, keep this trend in mind.
Last but not least, NJ also doubled its maximum child tax credit as part of its new budget. The credit is now $1,000 per child under the age of 6. All politics aside, it’s clear that New Jersey lawmakers had the high cost of living in NJ on the docket during the budget negotiations and pushed forward with items they felt would help offset some of the burden for business owners, families, and seniors alike.
We’re halfway through the year and all the way through the rundown. The next step is to get in touch with your accountant for your earliest end-of-year planning ever. That way, when December rolls around, your books will already be buttoned up instead of having to be dusted off.
About The Author William C. McNamara, CPA, CCIFP leads the Construction Services Team at The Curchin Group, LLC, Red Bank, NJ. Bill’s primary focus for 20 plus years has been centered on the construction industry.
Questions? You can reach Bill at bmcnamara@curchin.com or 732-747-0500.
Before beginning its typical recess for the summer, the Legislature engaged in a flurry of legislative activity that culminated in the passage of the state budget at the end of June.
While often a time of furious action, this year’s budget process was particularly tumultuous with Governor Murphy and Legislative leaders sparring over a property tax relief program and last-minute budget negotiations that added more than a billion dollars to the budget the Governor proposed in February. The end result was the enactment of a $54 billion budget and the creation of a property tax relief program that could offer some seniors rebates of up to half of their property taxes.
The final budget provides a significant number of allocations for infrastructure projects up and down the state, including $54 million for water projects.
In addition to enacting the budget, May and June in Trenton saw action on a slew of bills impacting the construction industry. In May, the Governor signed legislation backed by UTCA that will allow New Jersey to seek millions in federal resiliency funding. The measure allows the New Jersey Infrastructure Bank to set up a mechanism to accept FEMA funds from the federal STORM Act which provides $500 million to the states over five years for hazard mitigation projects. New Jersey will be one of only a few states that are eligible to apply this year and will seek additional funding in following years.
Another bill that UTCA has supported would increase the percentage of recycled asphalt pavement (RAP) that can be used in paving projects has cleared both houses and is now awaiting the Governor’s signature. Championed by the New Jersey Asphalt Pavement Association, under the latest version of A-4797, the percentage of RAP that can be used on DOT highways would be changed to 35% for base and intermediate paving and 20% for surface paving. Certain local road projects not receiving state funds would be authorized to utilize up to 50% for base and intermediate courses and 35% for surface paving.
A number of other bills related to infrastructure construction also have advanced over the past few months, including a measure requiring increased testing for microplastics in water and a bill that expends remaining funds from the 1999 Transportation and Local Bridge Fund. In addition, legislation authorizing the New Jersey Infrastructure Bank to provide hundreds of millions
of dollars in loans for transportation and environmental projects was approved.
UTCA-initiated legislation expanding material cost escalation was also introduced in the Assembly in May. This measure is identical to the Senate bill that was introduced in May that would provide reimbursement for cost increases in materials purchased for awarded government construction contracts that were bid between March 1, 2020 and December 1, 2021. The program would be available for contracts valued at under $25 million.
While the Legislature typically meets infrequently or not at all during the summer, the fact that this is an election year in New Jersey, means there will likely be no legislative activities until after the fall election. It also means that there will be a “lame duck” period between the November election and mid-January when the newly elected lawmakers are sworn into office.
“Lame duck” is a unique time in Trenton for a number of reasons. The first is the legislative term in New Jersey which runs for two years and ends with the swearing in of the new and re-elected Senators and Assemblymembers. When this happens, all of the bills that have been introduced during that two-year cycle are discarded and the process for passing a bill re-starts. This means any progress on a bill that doesn’t reach the Governor’s desk is halted and the bill sponsor has to start at square one. This often results in a burst of legislative activity as lawmakers rush to get their bills passed before the term expires.
Another factor that shapes the “lame duck” period is that many lawmakers who will be voting will be leaving office in a few weeks. This often leads to votes being held on unpopular or controversial bills and causes an increase in the “horse trading” in which retiring lawmakers may be convinced to vote for or against a particular bill. Adding to the intrigue this year is the fact that both the Senate and Assembly are up for election and an unusually large number of legislators are not seeking re-election. In fact, 20 lawmakers have announced their retirement, including the Senate Minority Leader, Steve Oroho, who resigned his leadership post in June.
Of course, nothing happens in a vacuum in politics, and this fall’s elections and legislative activities will take place against the backdrop of next year’s presidential election and the following
year’s gubernatorial election. The presidential race is already in full swing with Florida Governor Ron DeSantis, former New Jersey Governor Chris Christie and former UN Ambassador Nikki Haley all seeking to wrest the Republican nomination from former President Donald Trump who continues to attract controversy amid mounting legal woes.
President Biden, who turns 81 in November, continues to face questions about his mental acuity and has himself sparked controversy—particularly involving the activities of his son, Hunter. While it seems as though the 2020 election just ended, the first presidential debate will take place this month.
In New Jersey, the Presidential election and the 2025 race for Governor cast a long shadow over our political climate. With Gov. Murphy barred from seeking another term, a number of political figures are positioning themselves to run for Governor.
As of this writing, Jersey City Mayor Steve Fulop is the only official candidate, but others who are said to be considering a run include former Senate President Steve Sweeney, Congresswoman Mikie Sherrill and Newark Mayor Ras Baraka. While 2021 Republican candidate Jack Ciattarelli has given every indication he will run again, the emergence of radio personality, Bill Spadea could lead to a competitive Republican primary.
As always, UTCA will be closely watching both the legislative and political spheres to ensure that the views of our industry are represented as we head into the “lame duck” period and begin a new legislative term in January. Over the next few months we will continue engaging with policymakers and candidates for office who will be setting the policies in Trenton and Washington that dramatically impact on the construction field.
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For hard working contractors in the transportation construction industry, working with the New Jersey Department of Transportation (“NJDOT”) is a necessary and expected part of daily life. For many of you, decades of rigorously reviewing and checking bid specifications and document requirements before submitting bids to the NJDOT has made you keenly aware of how important it is to have your paperwork properly completed if you want to secure a project with the NJDOT.
However, over the past year there has been a noticeable change in how the NJDOT’s Division of Civil Rights and Affirmative Action reviews and approves paperwork submitted by contractors in connection with the Disadvantaged Business Enterprise (“DBE”) program. In particular, the NJDOT is now taking a strict compliance approach to reviewing DBE program related submissions and has made it clear that it will reject your bid if you fail to complete and execute all required paperwork for the DBE program.
The NJDOT’s new approach has surprised many contractors that have been working in this industry for decades and has caused complaints amongst the DBE contractor community. DBE contractors have complained directly to the NJDOT about how frustrated they are with the amount of paperwork they must complete within five days of being awarded a NJDOT project. A common refrain our office hears from DBE contractors is that they lack the office capacity and staff needed to complete the voluminous amount of paperwork required for each project, within the short window of time provided by the NJDOT.
In particular, it has been increasingly difficult for general contractors to find certified DBE truckers to perform work on NJDOT projects due to the added burden the DBE program puts on their staff and drivers. Many DBE truckers only own one or two trucks and do not have a large office staff capable of handling the paperwork requirements of the DBE program within the short response window. This has led to situations where DBE truckers are refusing to work on NJDOT jobs and are even demanding higher prices from general contractors on jobs that they have already been awarded.
The current approach by the NJDOT has caused many ready, willing, and able DBE contractors to lose critical opportunities to work on NJDOT projects due to minor mistakes in their paperwork. Unfortunately, the result goes against the intended objec-
tives of the DBE program, which according to 49 CFR 26.1, are: 1)to ensure nondiscrimination in the award and administration of DOT-assisted contracts; 2) to create a level playing field on which DBEs can compete fairly for DOT-assisted contracts; and 3) to help remove barriers to the participation of DBEs in DOT-assisted contracts.
Since the NJDOT has changed its approach to how it reviews DBE program submissions, you must also take action to ensure that your paperwork is perfect to avoid losing your next big project. Accordingly, before submitting your next bid to the NJDOT, you should make sure: 1) all forms have been completed and signed; 2) all requested documentation has been attached; 3) proof that your company acted in good faith to meet the project’s DBE participation goal has been included; 4) you verify that the DBEs you selected are classified to perform the work that you have assigned to them; and 5) try to exceed, not match, the DBE participation requirement established by the bid specifications for your project.
When preparing your DBE forms, make sure you have checked to see if all of your DBE contractors are listed on your New Jersey Form CR-266 and that you have clearly identified the type of work they will be performing on your project. If your DBE contractor is a trucker, make sure you include proof that the DBE contractor owns the trucks it will use on your project. Do not let missing paperwork cost your company its next big opportunity.
If you plan to use a DBE contractor to perform a variety of different tasks on your project, they should provide you with proof that they have the necessary North American Industry Classification System codes and classifications to perform each task. The DBE contractor should provide you with a letter from an established New Jersey government agency that identifies the type of work that DBE contractor is certified to perform. Keep in mind, the NJDOT will not count your DBE contractor's participation towards your project's DBE goal if the DBE contractor is not certified to perform that work.
Remember, if possible, you should try to exceed your project's required DBE participation goal so that you can have a buffer in the event one of your DBE contractors is disqualified by the NJDOT. You should also try to spread your DBE participation amongst as many DBE contractors as possible, just in case one or two are disqualified by the NJDOT. You never know when an is-
sue may arise and it could happen in a variety of ways, but safety can be found in numbers, so try to create a cushion for your bid by exceeding your project’s established DBE goal when possible.
In light of the U.S. Supreme Court's decision to effectively end affirmative action in college admissions, we expect to see some push back by state and federal agencies that still have affirmative action programs in place. Over the next few months, contractors should not be surprised to see an increase in the enforcement of affirmative action programs like the DBE program. This is the time when public agencies will examine their existing affirmative action programs to determine if they are currently being implemented in a manner that achieves their intended goals. Officials overseeing such programs will be wondering if their programs are next for termination and will likely take aggressive steps to demonstrate to the public why their programs are still relevant.
For now, you should be mindful that the NJDOT will be carefully reviewing your DBE related paperwork and that it will be taking a strict compliance approach while interpreting your documents. If you have questions about your paperwork, you should ask an attorney before submitting it to the NJDOT. Please note, the NJDOT will not let you make any corrections once you submit your DBE related paperwork, so it is vitally important to get it done right the first time.
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.
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WORK JURISDICTION: DRILLING, BLASTING, ROADS, SEWERS, BRIDGES, UTILITY WORK, PAVING, TUNNELS, DAMS, HAZMAT, EXCAVATIONS, CONCRETE WORK ON HEAVY AND GENERAL CONSTRUCTION
TERRITORIAL JURISDICTION: COUNTIES: BERGEN, ESSEX, HUDSON, HUNTERDON, MIDDLESEX, MONMOUTH, MORRIS, PASSAIC, SOMERSET, SUSSEX, UNION, AND WARREN
What lasts 100 years? In 1923, the original Yankee Stadium was opened the same year as J. Fletcher Creamer & Son, Inc. (Creamer), but it only lasted 85 years. Several Egyptian dynasties did not make it to a century. In the business world, the answer to how many companies last 100 years is very few. According to Harvard Business Review, the average lifespan of a U.S. S&P 500 company fell by 80% between 1938-2018 (from 67 to 15 years). When a company is celebrating its 100th anniversary, what can we point to as the reasons for its longevity and success? Much like the infrastructure that Creamer builds, the company has a dedicated purpose (commitment to excellence), is built with quality materials (its people), maintains proper stewardship (strong leadership), and strives to serve the greater community (industry and charitable leaders).
As we find ourselves celebrating the centennial anniversary of Creamer, it’s a testament to the vision, values, and constant striving to bring out the best in each employee that every leader of this company has carried forward since the day it was founded.
From the onset, the most critical element to Creamer’s success has been the value it places on its people. Every Creamer leader and every single one of the company’s friends and partners shares the opinion: it is their people that are the foundation of the company’s success. As a result, today the company is considered an industry leader in New Jersey and nationally (ENR Top 400 contractor for just under 30 years in a row) and boasts more than 700 employees.
Company President Martin (Marty) Downs, Jr., a 20+ year career employee of the company, says it best: “It’s the sense of pride, sense of community, sense of family and commitment to excellence that have been instilled in every one of our leaders that make this company such a success. The commitment to excellence they display each and every day shows that they share the vision of a company that still lives by the values of its founder and the entire Creamer family. Creamer is committed to service, our customers, and our community. We feel our leaders are the best in the business and we will continue to invest in them, develop
them, and prepare them so that they are set up for success.”
This is the story of how sticking to core values, treating employees like family, having a commitment to community, and constantly striving for excellence in everything they do, led J. Fletcher Creamer and Son, Inc., to be a national leader in their field. By constantly focusing on people, the ones who work for the company, and the ones their work provides service for, Creamer has always been able to stay a step ahead of their competition. Through a solid mix of discipline and risk tolerance, this company that started with one man, one truck, and a dream, is now a national industry innovator and leader, ready to take on the next 100 years and beyond.
Shortly after J. Fletcher Creamer II started out with his one truck in 1923, he was forced to expand into other fields in anticipation of upcoming rocky financial times. In the late 1920’s Creamer began to deliver coal and simultaneously took on higher profile excavation projects. The company was an integral member of the team in 1931 that delivered the George Washington Bridge project, producing the company’s largest excavation project up to that point. J. Fletcher Creamer II along with his father grew the company very conservatively, but always with an eye to staying ahead of the curve of various changing markets. Then Fletch Creamer Sr. came home from the Navy and the company was never the same.
When J. Fletcher Creamer III (Fletch Sr.) returned home after serving his country in the US Navy from 1943-1946, he joined his grandfather and father at the company, which had now ex-
panded to a fleet of four trucks. The very next year, the company purchased a brand new 2,200-gallon fuel truck, and Fletch Sr. had a new job; fuel truck driver. From there he would proceed to work his way up through the company ranks until he became President in 1970. Everyone you ask will tell you that the journey from the Navy to President of Creamer and beyond was a colorful one. When asked how he remembers Fletch Sr., PSEG CEO Ralph LaRossa says, “He was larger than life in every imaginable way.”
George Kreis is a 55-year employee of the company who went to high school with Fletch Jr. Fletch Sr. took a liking to George and gave him a job in the shop while he was still in high school. George would go on to work with the Creamers over the next several decades, helping them build the company into what it is today, and eventually rising to Vice President of Operations. George called Fletch Sr. “A master marketer. Mr. Creamer could sit down with you for an hour or two the first time he met you at dinner, and then four years later remember everything about you. He made any and everyone feel special”. At 73 years old, and with a decorated career of his own that coincides with the company’s rise, George still calls Fletch Sr. “Mr. Creamer” and speaks of him like a son would a father.
“My father was a boss, a mentor, a best friend, and my dad, all at the same time. Working with him for all those years was amazing because to him, his most important job always was to be our dad” said J. Fletcher Creamer IV (Fletch Jr.), the eldest of the four Creamer brothers. “He was not only a great leader for our company, but also for the industry. He didn’t start the Utility & Transportation Contractors Association (“UTCA”), but he joined early on, and once he did, he made his presence known for the industry.” Fletch Sr. was inducted into UTCA’s NJ Construction Industry Hall of Fame in 1997.
Fletch Jr. began working for the company when he was 15 years old, working outside with the union trades in the summer. “I was known as “The Kid” because of my dad, but he made me earn it!” he said. His father wanted him to learn the estimating and business side of the company. In the early days of his career, before computers and algorithms, he would sleep overnight at the office while working on estimating jobs.
“My father was a great leader for the company. He increased the types of work we performed and grew the size of the company significantly. Before naming me President, he had empowered me in whatever positions I held to make the right decisions, but he made sure I proved myself before moving me up in the company.” Fletch Jr. continued to work his way up in management, and in 1982 he was named President of the company.
Glenn Creamer started working for the family business right out of high school in 1971 and stayed until his retirement in 2015. When speaking about Fletch Sr., “Our father was a pioneer of so many things,” Glenn exclaims. “He had so many different business ventures it was hard to keep track. But they always made money and he always created jobs. Add to that his involvement with the industry and his charity work, and we would always ask, where does he get the time?”
Like his brothers, Dale Creamer grew up in the family business and first went to work for the company in his early teens. He started off performing odd jobs and then found himself handling a myriad of tasks for his father. “He always kept you involved and was always teaching,” he said. Fletch Sr. sent Dale to Farleigh Dickinson to get a degree but also sent him with a beeper. “He told me I wasn’t going to be too busy that I couldn’t keep an eye on some jobs!”
Dale also talks about his father with a certain sense of wonder when trying to describe how Fletch Sr. accomplished all he did while being a great family man. “He instilled a passion in every employee, from the management to the field, that made us all want to make our company and our community a better place. He helped lead industry associations, hospital boards and even started the Bergen County 200 Club,” said Dale.
Fletch Sr. not only started the Bergen County 200 Club, but when he was approached by first responders seeking to support the families of those who have fallen in the line of duty protecting others, he personally signed up the first 85 members.
Fletch Sr. led the company as President for 12 years from 19701982 before turning the reigns over to his eldest son. Prior to doing so, he oversaw the company’s expansion into more difficult and higher profile heavy highway and utility construction projects. He maintained and enhanced the relationship with Hackensack Water as it became United Water (now Veolia) while winning the company larger projects that allowed them to explore new disciplines.
When Fletch Jr. became President in 1982, his father stayed with the company for several
the sense of pride, sense of community, sense of family and commitment to excellence that have been instilled in every one of our leaders that make this company such a success"
-Mar tin Downs Jr. Pr esident"It's
years in a senior advisor role. As Fletch Jr. puts it, “He wanted to hang around and be helpful in case we had any questions. In 1987, he fully retired and let me know that there was officially only one boss. He really loved the company and the people, but he knew it was time to step away.”
In 2008, when the company was celebrating its 85th anniversary, Fletch Sr. had this to say as some of his final words about the company, its growth, and success, “When the truth finally dawned, we realized it wasn’t pure luck. It was our people who were helping the company grow to what it is. Their dedication and perseverance, then and today, cannot and will not ever be forgotten… I send a “tip of the hat” to one and all for their tremendous contributions to our company.”
Fletch Sr. passed away in 2012.
J.Fletcher Creamer IV
Fletch Jr. hit the ground running as President after spending his entire life and career learning every aspect of the company from his father and the other leaders he was surrounded by. He had a vision to expand the company to new reaches and created several new business lines that still thrive today.
Tragedy struck shortly after Fletch Jr. became President of the company, when in 1984, while working on a project near Boston, the youngest Creamer brother, Jeff, was murdered while trying to protect a robbery victim. Not only was the task of taking over the company reigns from his father difficult enough, but now Fletch Jr. had to rally the family and the company to move forward in the face of this terrible tragedy. The employees of the company supported the Creamer family when they needed it most in recognition of how well the family had treated them. The living brothers, their father, and mother, Kissie, banded together and the company carried on but always kept Jeff’s memory alive.
When it came to the day-to-day business, with the three Creamer brothers now running the business, it was definitely a new day for the company. “It took three brothers to try to fill our father’s shoes,” says Dale Creamer, “but the passion he placed in us to always make it a better place, that really carried forward and especially to my brother, Fletch.”
Early in his tenure as President, the company won its first National Utility Contractor Safety Award and entered the ENR Top 400 National Contractors list for the first time and has never missed it since.
Andy Wood, longtime company CFO, had this to say about Fletch Sr. and his sons, “The Creamers are wonder-
ful people to work for and to work with. Fletch Sr. was tough. He had a presence and a certain mystique. I always called him Mr. Creamer. Fletch Jr. on the other hand has never raised his voice in the almost 30 years I’ve known him, yet he commands the same respect as his dad. What I love most about working for the Creamers is that they hire great people and then trust and empower them to do their jobs. They never micromanage; they allow leaders to emerge through their work. That continued through Joe Walsh and now Marty Downs.”
One opportunity he saw was to create a joint venture (JV) with his good friend Joe Sanzari. While Creamer continued to grow and take a larger portion of the utility infrastructure market, a JV with the Sanzari companies allowed them to stay active in the heavy highway sector, specifically with bridges. The JV proved to be quite a success, earning praise from the public agencies they worked for, and was constantly being recognized for the quality of their work.
Joe Sanzari reflected on his time working with the JV, “Creamer is a good company and a good partner. All their people are professionals and at all levels. Fletch Jr. and I worked very well together. We weren’t afraid to take risks, and we felt we could tackle anything. They’re still great to work with to this very day.”
Fletch Jr. took an already successful company and looked for new ways to grow it while always making sure to find time to help lead the industry. Fletch served in many roles for many different industry organizations, but the one he took the most pride in was his service as a Board member of the UTCA, where he went on to serve as Association President in 1997. There he is often credited for always having his pulse on where things were in our state. In 2014, Fletch Jr. was inducted into UTCA’s NJ Construction Industry Hall of Fame, like his father before him.
"My father was a boss, a mentor, a best friend, and my dad, all at the same time. Working with him for all those years was amazing"
-J. Fletcher Creamer IV
Another relationship that Fletch Jr. built, and his successor Joe Walsh made flourish, was with Public Service Electric & Gas (PSEG). Over the last 30 years, Creamer has become the go-to civil contractor for New Jersey’s largest utility company.
PSEG CEO, Ralph LaRossa, reflected on the relationship with Creamer, “I first started working with Fletch Jr. when we were both working handling issues in the field. Over the years, Creamer has been a real difference maker for me and for our company. They never over promise and under deliver; you can always count on what they say they’re going to do.”
When asked to give an example of a time Creamer went above and beyond to save a project or handle an unforeseen condition, LaRossa firmly states, “There are no projects like that, because they always deliver. There are no amazing kick saves and there is never a need for any.”
Indeed, the adherence to the employees and the value placed in the company’s leadership is evident by the tenures of a majority of their workforce, but especially their leadership team. Marty Downs started as an intern while at Stevens Institute of Technology. Just over 21 years later, having risen through engineering and project management, he is the company’s second non-Creamer family member to become President after his mentor Joe Walsh. Joe had been with Creamer for 24 years when he passed. George
Kreis is celebrating his 55th year with the company. The list of employees who have been with Creamer for 20, 30, and 40 years is longer than you could imagine.
One such leader is VP of Operations Rick DeNicola, who is celebrating his 32nd year with Creamer. Rick’s first exposure to Creamer came through his father who worked for the company for 35 years. Rick would play in the back of his father’s Creamer truck when he came home from work and dreamed of joining Creamer himself one day. Once he started working for the company, it was everything he had hoped for, “Fletch always made me feel like I was part of the family” he said. I really got started with Dale, but both brothers always taught me to do the right thing and allowed me to grow as an employee. I got to work with my dad for a bit and now my son is an employee too. It’s a legacy we’re very proud of.”
Throughout the 1990s and early 2000s, Creamer continued to grow successfully. During this time, future leaders like Joe Walsh, Andy Wood, Marty Downs, and many of the current Vice Presidents and managers were joining the company and working their way up the leadership ladder. The Creamers prepared to fulfill a succession plan, that for the first time, wouldn’t have a Creamer at the helm of the ship.
Joe Walsh
Joe Walsh joined the company in 1997 as the General Superintendent of Utilities. Within 2 two years he was promoted to Vice President, and in 2006, was the first non-Creamer to be named company President. His final title with the company was CEO of Creamer and Segment Leader for the APi Group. Joe’s untimely passing in August of 2021 cut short one of the most incredible runs a construction industry leader ever had in the history of New Jersey.
When Joe joined Creamer, the company was enjoying annual revenue of around $50 million. Under Joe’s leadership, and along with the steady support of the Creamer family, the company’s growth accelerated at a pace few other companies could ever hope to match and resulted in annual revenues of more than $500 million. Joe’s success was driven by his unrivaled work ethic, managing by metrics, a selfless approach to customer service, and of course, supporting the people of Creamer.
In addition to the incredible success Joe saw with Creamer, he was also a true leader of the construction industry. Joe represented Creamer as the President of the UTCA, not once but twice (2012-2013 and 2018-2019). Joe was a Trustee for the Heavy Highway Laborer’s fund local 172/472 and prior to his passing, had founded the New Jersey Chapter of the National Utility Contractors Association (NUCA).
"He instilled a passion in every employee, from the management to the field, that made us all want to make our company and our community a better place."
-Dale Cr eamer Executi ve Vice President
Who better to speak to the memory of a man who can best be described as having been one of the titans of our industry, than the men he worked with? Here are just a few of the comments that industry leaders have said about Joe Walsh:
“When Joe walked into a room his presence was immediately felt. He would command the room and was respected by all. No one worked harder… ever! And when you worked for him, you always knew where you stood” Marty Downs
“He took the company to the next level. He truly understood the business of business.” George Kreis
“Joe was one of a kind. I could never figure out how he did so much each day!” UTCA CEO, Bob Briant.
“Joe was a great leader, and a friend. Joe married the Creamer way with his own brand of leadership. He added a new emphasis on metrics. Creamer has always been great at construction. Joe found a way to run jobs more efficiently, which greatly improved profitability.” Andy Wood
“Growth under Joe was astronomical. His passion for growth and success was incredible.” Rick DeNicola.
“Joe knew how to balance being my boss, mentor, and friend. It’s true what they say. You don’t realize what you have until it’s gone.” Marty Downs.
Joe’s memory will last for generations to come in the New Jersey construction industry, and thanks to Creamer, it will also keep future generations of Creamer employees safe while delivering the highest quality construction for its customers. When Joe approached Fletch Jr. about building a safety and training facility in Wall, NJ, Fletch didn’t hesitate, and in 2017, Creamer opened a facility aimed at giving all its employees the safety and leadership training they would need to stay safe on the job and to build the best infrastructure a customer could hope for. On April 8, 2022, Creamer renamed the facility and dedicated it to Joe’s memory. Now every Creamer employee spends time learning how to be a leader at the Joseph T. Walsh Leadership & Training Center.
R.I.P. Joe, you are truly missed.
Just as Creamer has been a dominant force in the business world, the impact the company has had for its industry, specifically through service to industry and business associations, has been second to none amongst its peers. Creamer had held leadership roles and Board seats on several industry groups and business organizations including but not limited to: UTCA, American Road & Transportation Builders Association (ARTBA), NJ Alliance for Action, NJ Chamber of Commerce, ACE Mentoring Program, and the Associated Construction Contractors of NJ (ACCNJ).
No organization has felt the impact of the Creamer organization more than UTCA. Creamer boasts three past UTCA Presidents (Tony Cammarata, Fletch Creamer Jr., and Joe Walsh) as well
as three members in UTCA’s NJ Construction Industry Hall of Fame (Fletch Creamer Sr., Fletch Creamer Jr., and Joe Walsh). Creamer has been a constant voice on the UTCA’s Board of Directors for more than 40 years and that service continues thanks to current Creamer President Marty Downs, who is serving his third year on the Board.
Utility & Transportation Contractors Association CEO Bob Briant Jr. doesn’t mince words when asked to describe his feelings about the company, “Tremendously high-quality work and people. They are industry leaders in ALL respects. Their name has become one of the true gold standards of our industry over the years due to their work and their knowledge of NJ government, politics, and process. It started with Fletch Sr. who worked very closely with Governor Tom Kean during the creation of the Transportation Trust Fund. Fletch Jr. took everything to the next level as did Joe Walsh and now Marty Downs. Due to their capabilities, their politics, their technology, and techniques, J. Fletcher Creamer is one of the top leaders of our industry, and there are only a handful of contractors that have impacted the industry in such a way. I’m sure they’ll be around for another 100 years.”
PSEG CEO, Ralph LaRossa, noted that the Creamers and their company have always truly cared about New Jersey. They always worked to understand what was happening in Trenton and throughout the state, to position themselves to have a positive impact on their customers, company, industry, and community.
“Creamer always had their finger on the pulse of where New Jersey was going,” said LaRossa. “We have always been aligned with them that way. Fletch and his team always knew where NJ went so did the success of our companies. That goes for both the business, our people, and the communities we serve.”
"When it comes to the three brothers, Fletch is the back bone. He was a different type of leader than our father, but he was a great leader in his own way."
-Glenn Cr eamer
The future looks bright for J. Fletcher Creamer and Son, Inc. The company’s acquisition in 2016 by the APi Group, Inc. (APi), added support from a national ownership team with significant resources to help keep them one step ahead of the competition.
The adherence to succession planning, leadership development, and overall employee support has positioned Creamer to continue to build on its success for many years to come. Speaking about future growth and support from APi, Marty Downs states “We’re now in a better position to expand our capabilities in order to continue to succeed for our customers as a service provider.”
The company is in great hands to realize this growth with Marty at the helm and the leadership team he has assembled. This new leadership group continues to take the company to new heights. Joe Walsh handpicked Downs to be his successor, and other company leaders saw the same spark that Joe did.
“When I retire, I plan to leave the company in a position where it will be well situated for another 100 years of success,” says Downs. “We will continue to focus on our people and look to develop inhouse leaders for the future of the company. We’ll continue to strive for excellence servicing our clients and push ourselves in leveraging technology to help overcome our industry’s challenges. I believe it’s important that we support and advance the clean and renewable energy markets, as well as other emerging mar-
kets that will benefit the people that utilize the infrastructure we build and the environment we live in. Our course over the next 100 years obviously cannot be precisely charted, but one thing is for certain; whatever direction we choose to go, we’ll always do it the Creamer way.”
“PSEG turned 120 years old this year. If we didn’t have a partner like Creamer, a company that cares about us as a customer, cares about their state, and is always delivering their best, we wouldn’t be turning 120 this year,” says Ralph LaRossa, CEO, PSEG.
What lasts 100 years? A business that was founded on core values that focuses on people, service, and community. A company that remains true to its roots and legacy, but always seeks to innovate and be excellent at everything it does. Through the Great Depression, a World War, global pandemics, and more, Creamer has withstood the test of time by sticking to its core principles and values. Whether building world-class infrastructure, developing tomorrow’s leaders, or serving their industry, community, or state, J. Fletcher Creamer and Son, Inc. remains a brand name that can be counted on. Creamer stands stronger than ever and is ready to face the next 100 years as it did the first, striving for excellence on behalf of all they serve.
"Joe was a great leader, and a friend. Joe married the Creamer way with his own brand of leadership. He added a new emphasis on metrics."
-Andr ew Wood Executive Vice President & CFO
would like to thank all of our employees, past and present, for 100 years of success.
We are notjust a company, we are a family.
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■ REHABILITATION
■ UTILITIES
■ WATERFRONT
CELEBRATING 100 YEARS IN CONSTRUCTION
With sea levels rising and coastal storms becoming more frequent and severe, governments around the world are seeking to make their coastal areas more resilient and mitigate the harmful effects of flooding.
UTCA-member Eastern Landscape Contractors, Inc. is currently involved in just such a project along the Lower East Side of Manhattan. The East Side Coastal Resiliency Project (ESCR) is an ambitious $1.6 billion initiative designed to address these threats by reducing the flood risk to property, landscapes, businesses, and critical infrastructure while also improving waterfront open spaces and access.
As part of this effort, an integrated flood protection system is being constructed across a 2.4-mile span, which includes waterfront open spaces, sections of the FDR Drive, urban streets, residences, businesses, schools and other vital infrastructure, including a pump station and electrical substation.
Additional ESCR elements, including a combination of raised parkland, floodwalls, floodgates, and infrastructure improvements, will be integrated into the urban design fabric and will enhance access to the waterfront while providing long-term flood protection.
With work concentrated in Manhattan's Lower East Side between Montgomery Street and E. 14th Street, including the East River Park, this project is incredibly unique for multiple reasons, not the least of which is the fact that this project involves a multitude of government agencies. While the New York City Design and Construction Department is the project owner, the City’s Department of Parks and Recreation and Department of Transportation, as well as Con Edison, are just some of the agencies with jurisdiction over the project.
In addition to augmenting the region’s resiliency, Eastern will also play a vital role in the revitalization of the 45-acre John V. Lindsay East River Park. This involves incorporating new facilities and includes multipurpose passive lawns. In addition, they are restoring and enhancing the tree canopy and landscape of the park to anticipate climate change by introducing over 50 different tree species. The selection of tree species will pay special attention to those that can withstand salt spray, increased precipitation, strong winds, and extreme weather to create a more resilient plant community. Eastern will also be installing diverse tree sizes as the planting plan considers species growth speeds to achieve both short term shade and long-term canopy cover.
Overall, the project entails raising the East River Park, installing a floodwall and floodgates, esplanade reconstruction, replacing combined sewer overflows, and various utility work. When completed, the flood protection will range from 8-9 feet above the existing grade across 50 acres and the newly raised East River Park will provide flood protection for the residential communities behind it.
As a landscaping subcontractor to IPC Resiliency Partners on this project, Eastern’s scope of work includes the removal of approximately 1,000 trees; however, Eastern is salvaging the wood from approximately 600 of those trees that will be repurposed for other uses.
Eastern will also be installing approximately 330,000 square feet of new sod, about 2,000 new trees, 22,000 shrubs, and 63,000 grasses, perennials, and groundcovers. Additionally, they will be adding roughly 120,000 cubic yards of soil. Eastern will also be responsible for the beautification of East River Park.
As a Women-Owned Business, the folks at Eastern are particularly proud that this project has a high Minority/Women-Owned Business (M/WBE) participation goal which they are helping to fulfill.
Eastern Landscape Contractors is a Heavy highway public landscape construction company that specializes in all facets of public landscaping including, planting, hydroseeding, wetland mitigation, erosion control, soil procurement, grading, tree clearing, tree pruning, tree removals, & tree salvaging.
A union signatory and certified WBE, Small-Business Enterprise (WBE), and Disadvantaged Business Enterprise (DBE), Eastern has experience working with over 20 public entities throughout New Jersey and New York as both a prime contractor and subcontractor.
As we near our centennial, we pause to honor J. Fletcher Creamer & Son, Inc., fellow contractor and tri-venture partner on the Meadowlands Railroad & Roadway Projectforcelebratingtheir 100thAnniversary! Withthe combined talent and experience of three premier New Jersey general contractors, the Creamer - Sanzari - Railroad -A TriVenture, successfully constructed a major transportation system serving MetLife Stadiumand theMeadowlands
Sportsand Entertainment Complex. This award winning project (pictured) included the installation of 2.27 miles of railway track and 3,500 ft. of elevated track, supported by pipe piles. The new two-story station facility was constructedwithapedestrianoverpass, connectingtwoplatformsandproviding access to three tracks. This project was presented with the Merit Award at the 47thAnnual ConcreteAwards.
Ourconstructionspecializationenablesustohaveadeep understanding of each client's business environment, allowing us to design customized products and services thatactively delivervalue. We donotaccept"onesize fits all"solutionsandenjoychallengingthestatusquo.
Wearea nimble, solutions-focusedcompanythatissolely motivated to help our clients achieve their goals. Our positionandinfluence withinthemarketplace, our unique pool of specialist intellectual capital, and our familiarity with our clients' businesses allow us to provide tailored insuranceandsuretysolutionsanddeliverbetterresults.
Strategic Differentiators: Construction Focus MarketRelationship
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Risk Partners is a leading construction industry brokerage firm dedicated to providing impeccable customer service. We work with owners, developers, general contractors, designers and subcontractorstoprovidethesupporttheyneedtosucceedandreachtheirnextlevelofgrowth.
As a safety-minded professional, what’s your response when asked, “How are your KPIs looking?”
Key Performance Indicators (KPIs) are quantifiable measurements used to evaluate the success of an organization or employee in meeting objectives for performance. It offers a simple way to set goals backed by data, to drive change.
Setting up a KPI program for safety performance is simple because most companies are already using KPIs in their annual financial calculations. Examples of those calculations include metrics related to Earnings Before Interest and Taxes (EBIT), revenue growth, and client retention.
Setting goals using KPIs for safety using lagging indicators is a must, but it does not necessarily drive change; it only gives insight into how you did in the past. Instead, using KPIs to set goals for proactive activities has been shown to be a more effective way to control your lagging indicators. An example of this would be to set a goal for each project team member to conduct a safety inspection at least once a week. KPIs will measure how well the team members meet the goal both as a team and/or individual.
tasks or work environment.
A critical piece of the crew engagement program occurs during the rollout phase. It’s imperative that the entire team (top executives, project managers, field supervisors, and work crews) understand the purpose and process of completing crew interactions. Once everyone is on-board with the process, set monthly engagement goals for each department. By measuring the number of crew engagements by job function and reporting scores, management can better understand individual, department, and overall team performance. Friendly competition among employees aimed at securing the highest score helps to create added interest in safety initiatives.
The effectiveness of a crew engagement safety program will ultimately be correlated to the level of senior leadership involvement. It becomes imperative to have senior leadership review status reports and be committed to communicating with leaders or managers who fall below the median line for engagements each month. Ultimately, if the implementation of Safety KPIs is important for Senior Leadership, it will be important to everyone else. As a result, crew engagement will increase, daily work plan quality will improve, and crews will feel more comfortable with the potential hazards associated with job tasks. Workers will feel as though they are an essential part of the process and less an object to get the work done, leading to a reduction of incidents and accidents throughout the year.
Monitoring safety program performance isn’t as demanding as one may think. It can be as simple as collecting data points for each of your KPIs and presenting it in a simple format such as a dashboard or spreadsheet.
There are many ways to set up KPIs for your company, so it’s imperative to define which program works best for your organization. Relying on OSHA 300 logs is not a solid foundation for your Safety Program. Waiting until February 1st of each year to post the OSHA 300 logs and having that be the first time the team sees the injury statistics for the year does very little to drive the change safety professionals are wanting.
Measuring crew interaction is another phenomenal leading indicator activity. An example of this process may involve actively engaging your work crews, reviewing their daily plans, and verifying that their work plans match duties performed on the job. Additionally, it requires having a meaningful conversation with each crew member to gauge their understanding of potential hazards of the tasks assigned. Being intentional about the team’s safety and well-being gives crew members the added confidence they need to be vulnerable enough to express safety concerns that may be related to their
Frank Baxter and Tom Madden (Construction Risk Partner’s Loss Prevention Service Team) have developed a 12-step process to help identify areas of focus to bolster your safety program and will work with you to fine-tune a safety KPI program that creates the positive safety improvements you desire. Contact us today: frank.baxter@ constructionriskpartners.com; Thomas.madden@constructionriskpartners.com
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Technology is changing faster than ever. Heavy equipment and the software in it is more complex and can do more for you: GPS, remote control, artificial intelligence. It's no longer enough to operate equipment. Today and in the future, you have to understand it.
IUOE Local 825 has always kept pace with change. In 2022, we got ahead of it. Our nationally known training center became accredited as a technical college.
This means our engineers are schooled in more than operating heavy equipment. They are learning to maintain and even develop software that runs it, rather than being dependent on it.
Our goal is to stay relevant in a changing world, continuing to offer themost highlytrained, skilled and experienced operators available anywhere. Today And tomorrow.
BACK TO SCHOOL CAN BE AN EXCITING TIME, BUT FOR MANY KIDS, IT CAN CAUSE STRESS AND ANXIETY. EVEN CHILDREN WHO ARE USUALLY EASYGOING MAY EXPERIENCE BUTTERFLIES. HERE ARE SOME CLUES TO LOOK FOR IF YOU THINK YOUR CHILD MAY BE EXPERIENCING ANXIETY:
•Appear clingier than normal
•Your child is restless and fidgety, and has a hard time concentrating
•Display changes in eating and sleeping habits, complains of stomach aches
•Express negative thoughts or worries
•Getting upset or angry more quickly, bouts of unexplained crying
WE’VE GATHERED SUGGESTIONS ON HOW TO HELP NAVIGATE THE STRESS OF GOING BACK TO SCHOOL.
Listen
The first step in helping kids with school stress is to listen to what’s going on with them. Even if they are not talking, watch for non-verbal cues and trust your instincts if your child just doesn’t seem like him or herself. Begin the conversation by casually asking about school while you’re driving home, at the supermarket, or doing a chore around the house together. Don’t pressure them and refrain from pressing for answers.
If they’re new to homework, discuss the work with them at the kitchen table or before they sit down to work. Talk about what is due and help them to plan out how to get the work done. Don’t focus too much on grades, but rather focus on completion and understanding the concepts of the assignment. Learning to manage their workload efficiently will help them not only to succeed in school but in the workforce.
A week or two before school, start preparing your children for the upcoming transition by resuming school-year routines such as setting a realistic bedtime and setting out the next day’s clothes.
Set a breakfast and morning routine that works for everyone. This may mean setting out plates and planning breakfast the night before or it may mean getting up a few minutes earlier to help ease morning stress. Try to make mornings calm and be enthusiastic about what’s planned for the day.
If your child is concerned about reconnecting with friends they haven’t seen in months, arrange play dates. Helping your children reconnect with old friends or make new friends will reduce anxiety and stress and help your child start the year off on the right foot.
Understand the rules that your child’s school has in place. What happens if they are late for class? Are electronic devices allowed? What is the dress code for school? Be attentive at parent meetings and understand the culture of the school so that you can have a solid grip on what’s expected of your child.
There are wonderful extracurricular activities for your child, but it is just as important that kids take time to relax and have some unscheduled time at home or outdoors. Keep one weekday after school that is a “free day” and stick to that schedule for the school year. Your child will be relaxed and prepared for the rest of the week when you allow him or her to have proper downtime.
Get your family together and make a list of things the kids need before heading off to school. Thinking about shiny new sneakers, cute backpacks, untouched markers, and unused folders can actually make kids excited to start the new school year. To avoid shopping stress, go on a day or time when it’s the least crowded.
Help your kids express their anxieties by creating a “worry wall”. Give them a stack of sticky notes, have them write one worry per note, and stick them up on the wall. Remind them that once their worries have been put up on the wall, they don’t have to think about them anymore. To really banish their anxiety, create an “optimism wall”, and write a positive note for each worry note. Once your optimism wall is created, tear down the worry wall, because it doesn’t matter anymore!
Take a few minutes each day to go around the family and express things you’re grateful for. This can be done before dinner, during breakfast, right before bed, or any time the whole family is together. Taking time to recognize positive moments and blessings will reset your family’s minds to think more about the good things that are happening in their lives and less about the back-to-school stress.
You know your child best. If you sense that their back-to-school anxiety may be rooted in something more serious, such as an anxiety disorder or a problem with a bully, talk with your child, your child’s teacher, and the school counselor or family doctor.
For over 60 years our talented team of construction managers, engineers, estimators, construction workers and professional staff have delivered high quality complex projects. In today's competitive environment, Schiavone remains an industryleader in the heavy infrastructure market with an emphasis on tunnels, deep foundations, highways, bridges, water treatment facilities, and marine work. Schiavone is one of the few construction firms maintaining a full design staff, allowing us to develop innovative and cost saving solutions to today's most challenging opportunities.
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President John F. Kennedy is credited with saying, “Victory has a thousand fathers, but defeat is an orphan.” Sure enough, we celebrated an early Father’s Day here in Washington on May 25, courtesy of the U.S. Supreme Court.
Undoubtedly, the Court’s ruling that the Environmental Protection Agency (EPA) exceeded its authority in developing new wetlands regulations is a major win for the transportation construction industry. It means EPA will need to rewrite its “Waters of the United States” (WOTUS) rule, which has risked permitting delays for transportation projects.
The favorable outcome in Sackett vs. EPA resulted from many years of partnership, perseverance, and member support. Since 2005, ARTBA has advocated tirelessly for reasonable Clean Water Act (CWA) jurisdiction through multiple administrations. Our federal district court litigation began eight years ago, with the National Stone, Sand & Gravel Association (NSSGA) joining us in the legal trenches as part of a multi-industry coalition.
At issue in Sackett was whether the agency could require a permit for any area with a “significant nexus” to a navigable waterbody, such as a river, lake, or stream. The EPA never defined “significant nexus,” causing confusion for the entire transportation construction industry. The Court called the “significant nexus” test “particularly implausible” and held the EPA has “no statutory basis to impose it.”
In our brief to the Court, ARTBA and NSSGA critiqued the “significant nexus” test, noting it has “no inherent limiting principles” and empowers federal agencies to assert federal jurisdiction “well beyond the limits set by Congress.”
ARTBA and NSSGA maintained that defining WOTUS in such an expansive way improperly creates permit obligations for features such as roadside ditches, which serve the necessary safety function of collecting water during and after rain events. This type of overregulation serves only to delay critical infrastructure improvements and increases costs without providing demonstrable environmental benefits.
In its efforts to build projects safely and efficiently, Sackett is a victory for the industry, but it is by no means the end of the fight. In April, a North Dakota federal court temporarily blocked the WOTUS rule from taking effect in 24 states while it considers the case brought by ARTBA and its allies. With the clarity provided
by the Sackett decision in hand, our coalition plans to ask the lower court to vacate the rule, since it is now legally invalid. We will continue advocating for a clear, common-sense definition of the CWA’s reach.
Finally, there are true “fathers” (and “mothers”) within ARTBA who deserve special recognition for this achievement. Several members and chapters have supported our “Transportation Makes America Work!” (TMAW) program and provided the resources for ARTBA to help lead this coalition. And on a personal note, the Sackett ruling came as our colleague Nick Goldstein wrapped up nearly 19 years leading our association’s regulatory and litigation efforts. While Nick is headed to federal service at the Small Business Administration’s Office of Advocacy, his legacy at ARTBA is secure, in no small part because of his leadership in “parenting” better WOTUS policy.
About The Author . . . Rich Juliano serves as general counsel at the American Road & Transportation Builders Association (ARTBA) in Washington, D.C. He is also managing director of ARTBA’s Contractors Division and Public Private Partnerships Division. In both roles, Rich maintains communications with officials at the U.S. Department of Transportation (especially the Federal Highway Administration) and other Executive Branch agencies and represents ARTBA in the federal regulatory process.
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