Utility and Transportation Contractor December 2014

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President’s Message Reflecting on the past election, it is obvious that our country is looking for a change. The election results have shown that we, as a nation, are not happy with the status-quo and are looking to get something done in our great country. This trickles down to New Jersey, as well.

Governor Chris Christie has the opportunity before him to fix one of our state’s most pressing issues; the passage of the Transportation Trust Fund (TTF). Governor Christie has not only promised to balance the budget, but also not to spend more than what is brought in. This is a novel and simple ideal, which each and every NJ business and family should live by. NJ currently brings in approximately $930 million in revenue to the TTF annually, yet our payments on the debt service alone are $1.2 billion annually and that number will continue to rise. The $300+ million difference is being funded with tax revenue from the State’s general fund. NJ has been paying for projects and equipment which are estimated to last for 6-10 years with 30 year bonds!

Would you run your business like this?

No! This is fundamentally wrong and has to end now!

Some of the depressing transportation facts for New Jersey: · FHWA reports that 46% of NJ roads are rated as “not acceptable” which is the highest percentage in the nation. · FHWA reports that 35% of our bridges are “structural deficient” or “functionally obsolete.” · NJ workers have the second longest average commute according to the US Census Bureau. · Neighboring states charge far more for their gas tax than NJ. The following numbers are totals when petroleum gross receipts tax revenues are added in: · NJ - 14.5 cents per gallon · PA - 41.8 cents per gallon · CT - 49.3 cents per gallon · NY - 49.8 cents per gallon We need at a minimum $2 billion of NEW DEDICATED revenue to help resolve these issues. We need your support on a grassroots level to urge your local representatives to do the right thing and pass a renewed, robust and sustainable TTF now!

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The perfect segue from our bad transportation news is the good news of the dedication of the Robert A. Briant, Sr. Memorial Bridge in Monmouth County on October 10th. The bridge is located on Route 71 connecting Avon to Belmar. It is so apropos that a bridge is dedicated to such a great man who had dedicated his life’s work to infrastructure. A truly well deserved honor.

I would also like to note the retirement of Steve Brawer, the UTCA’s attorney for the past 30 years. I have had the great honor of working with Steve for the last 20 years with the UTCA. He has always been a gentleman and a true supporter of the UTCA. He is a great legal advisor and a champion of many of our initiatives. He successfully defended many Local Public Contracts Law issues, and most notably successfully challenged the use of PLA’s for transportation and utility projects.

This month’s magazine features two firms which have achieved significant milestones in their respective businesses this year. Vollers Excavating is celebrating 65 years in business, and Campbell Materials is celebrating its 10th year. I congratulate each firm and wish them continued success in the future.

Lastly, I would like to mention the great turnout that we had at our annual reception for the League of Municipalities Convention. It was held at the Tropicana and we had an impressive turnout of numerous state legislators, many state and municipal engineers, as well as many other friends and dignitaries. The convention culminated with Bob Briant Jr. reiterating our transportation trust funding needs and solutions. I believe that everyone there understood the dire needs that we face and support the measures that have to be taken this month.

I wish all of you and your families a Happy Hanukkah, a Blessed Christmas, and a healthy, safe and Happy New Year.

Best regards,

Scott Lattimer Utility and Transportation Contractor, DECEMBER 2014

DECEMBER 2014 Volume XXXIX, Number 6

Contents Features

Published Bimonthly During 2014 Office Address: 1670 Route 34 North Farmingdale, NJ 07727 Mailing Address: PO Box 728 Allenwood, NJ 08720 (732) 292-4300 FAX: (732) 292-4310 www.utcanj.org Publisher: Robert A. Briant, Jr.

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Editor: Michael DeVito Editorial Contributors: Michael DeVito Anthony Attanasio Dan Neville Helene Nasdeo Advertising Manager: Helene Nasdeo Photographer: Michael DeVito Cover Photo: Image Up

Vollers Completes 65 Years In Business Two Doors Of Protection Part 3 Steve Brawer Retires As UTCA Legal Counsel Pile Drivers Shore Up New Jersey’s Superstorm Defense Is Your Employee Benefits Portfolio Meeting The Needs Of Your Employees?

Cam0pbell Materials Completes Ten Years In Business

Departments 2 16 22 31 36 77 93

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

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Production/Graphics: Lauren Hagan Helene Nasdeo Circulation: Helene Nasdeo

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Printed By: American Plus Printers Affiliations: ARTBA Clean Water Construction Coalition Water Infrastructure Network

Cover The Vollers team is pictured at the firm’s corporate facility in North Branch.

UTILITY AND TRANSPORTATION CONTRACTOR (ISSN 0192-4843) is published six times a year by the Utility and Transportation Contractors Association of New Jersey, 1670 Highway 34 North, Farmingdale, NJ 07727. Periodical postage paid at Farmingdale, NJ and additional mailing offices.

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

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Cover Story

VOLLERS COMPLETES SIXTY FIVE YEARS IN BUSINESS Firm Operates Five Different Divisions In The Construction Industry

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he heavy highway, utility construction industry has seen many changes in the past 65 years. The industry has evolved with the advancement of new equipment and technology and construction has weathered the ups and downs of several recessions during this time period. A constant presence during the past 65 years is Vollers Construction. From its humble beginnings in a farming community, Vollers has diversified into one of the top contractors in New Jersey, Pennsylvania and New York with five separate divisions.

The Vollers Company got its start in 1949 with the completion of drainage and irrigation construction for the farming industry in Somerset County. Herb and Nancy Vollers founded the

company which operated from a Sinclair gas station in North Branch. As a point of reference, in 1949 America was four years removed from the end of World War II, Harry Truman was President of the United States, the Korean War had not yet begun and the New York Yankees would begin a run of five consecutive World Series Championships. During those early days of the firm, Herb Vollers would operate the equipment, while his wife Nancy would drive a dump truck.

Site remediation is performed at the Prudential Tower in Newark.

Vollers completes excavation work at Met Life Stadium.

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Herb Vollers continued to provide services for farmers, homebuilders and developers in the 1950’s and expanded into pipe construction and excavation activities. This allowed for the company to increase its workforce and purchase additional equipment. Eventually Vollers was able to perform site work on larger scale projects such as shopping malls and corporate office properties. The Somerville Drive-In Theater was a noteworthy project which prompted Herb’s decision to transition from residential to commercial projects.

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Excavation activities are completed at a project in Fort Lee.

As the firm grew, the geographic reach of Vollers expanded into the central and northwestern part of New Jersey where they completed numerous projects in the commercial and residential construction industries during the 1970’s and the 1980’s. Vollers spent nearly 15 years working on the NJ Foreign Trade Zone in Mount Olive and also completed the site work package for the Merck World Headquarters in Whitehouse Station. On another project, Vollers moved approximately 1,000,000 yards of material during an eight month period at a warehouse project in Fishkill, New York. The firm also installed a 21 inch ductile iron pipe across the Delaware River which required the use of a helicopter.

The executive team at Vollers consists of Tom Vollers, President and Chief Executive Officer, Ben Scott, who is the Chief Operating Officer, Steve Vollers, Senior Vice President and John Fitzsimmons, the Chief Financial Officer. Through the leadership of these executives, the Vollers team now operates five divisions: recycling, concrete, environmental, paving and site & utilities.

the Vollers Recycling Facility has processed over 1,000,000 tons of asphalt, concrete and wood debris for re-use.

The structural concrete division is managed by Nick Castellano and has been in operation for four years. This area of the company specializes in the completion of footings, foundations and floor slabs. Some recent projects that Vollers completed through this division include a Verizon facility in Piscataway, a Lucent building in Berkeley Heights, a data center for Princeton University and installation of a new culvert on Route 202.

The environmental division, headed up by Mike Dempsey, has been in operation for three years. This division of the firm performed work at the Edgeboro landfill and the Jersey City Department of Public Works facility and also completed site remediation for Prudential in Newark and work for New Jersey City University in preparation of new dormitories. The environmental arm of the Vollers organization also employs an in-house Licensed Site Remediation Professional (LSRP) to help guide clients through the bureaucratic environmental regulations.

Work is completed at the Jersey City Department Of Public Works facility.

Pictured is the Vollers Recycling Center in North Branch.

The recycling division, which is led by Don Sens, is a Class B facility located at the company’s 27 acre corporate site in North Branch. This facility accepts and recycles asphalt, concrete, top soil and forest products while producing various construction materials. The facility utilizes crushed concrete to produce RCA, which can be used on roadway, landscaping and building projects. The crushed asphalt is useful on driveways or as road base material. With the oversight of an on staff LSRP/CHMM, Vollers also provides certified clean topsoil for environmental SRP projects. In 14 years of operation, Utility and Transportation Contractor, DECEMBER 2014

The paving division for Vollers has been in place for approximately eight years. This allows for the firm to selfperform all of its paving duties on its projects. The company paved numerous Township, City and County roadways as well as completing work at the NJ Turnpike/Route 18 Interchange.

Vollers has also paved a number of parking lot projects from Atlantic City to Camden, Newark to Long Island as well as for Johnson & Johnson in Skillman and at the Sands Casino in Bethlehem, PA. Leo Brochu is the paving division manager.

The fifth division in the Vollers corporate structure goes back to firm’s origin: the site work and utilities division. Vollers has successfully completed projects for Princeton University, Rutgers, Montclair, Johnson & Johnson, Novartis, Prudential, Merrill Lynch, and works with all the major general contractors and many, many more.

Some specific projects include mass excavation and utility installations at Met Life Stadium for Skanska USA, construction of a pedestrian bridge in Princeton and several miles of eight inch force main in Bound Brook for the Army Corps of Engineers.

Other projects include Brookhaven National Labs for the Department of Energy, Rutgers Chemistry Building and the relocation of 48 inch water main for the New Jersey American Water Company.

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The Vollers Company completes work in New Jersey, Pennsylvania and New York. While the firm performs the majority of its work in the private construction market, Vollers has ventured into the public construction arena for such owners as the NJDOT and Somerset County among others. The contractor operates a fleet of 300 pieces of equipment that includes CAT, Komatsu and John Deere models and employs approximately 300 workers.

Vollers prides itself on having a safe workplace for its employees. The firm’s safety vision is to operate in the construction industry with zero days of lost time due to accidents. The safety program is structured by committees consisting of several employees, then implemented and continually monitored by those personnel. Monthly meetings are held with all supervisors so that they, in turn, can implement the safety program in the field. Vollers also conducts relevant weekly tool box talks on each project. The company has won numerous safety awards from different organizations

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throughout the years and received the Construction Safety Award of the Decade in 2011 from the Utility & Transportation Contractors Association of New Jersey. It is easy to see how the Vollers Corporation has successfully performed in the industry for 65 years. Its commitment to safety, efficiency and excellence has positioned the firm for years to come.

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TWO DOORS OF PROTECTION PART 3 By: Carl Bloomfield, The Graham Company This is the third and final article in the series dealing with the topic of contractual risk transfer. To briefly recap, in Part I of this series I provided a general overview of contractual risk transfer and the concepts of indemnification and Additional Insured coverage.

Part II dealt solely with the topic of Indemnification, and this article will focus solely on Additional Insured coverage. Unlike indemnification, which is actually not insurance at all, Additional Insured coverage is purely an insurance concept, but it has many similarities to indemnification, as such the two concepts are often confused and interchanged incorrectly.

Anyone who has ever engaged in a contract has heard of Additional Insured coverage and has been required to provide it to a third party. However, even though it is essentially a requirement in every contract you will sign in the construction industry, Additional Insured coverage is not a standard coverage in the majority of insurance policies, unlike indemnification which is included in the standard, unendorsed General Liability policy and many other policies. In order to obtain Additional Insured coverage it must be specifically endorsed onto the policy, and this is where the trouble arises.

You may recall from Part II of this series, which dealt with Indemnification, that coverage can be afforded to a third party on three different levels – Broad, Intermediate and Limited. Additional Insured coverage is also provided on three different levels with sole negligence coverage for the Additional Insured being analogous to Broad Form Indemnity. You can refer back to Part II of the series for a detailed description of the different levels of coverage.

25 to 30 years ago, adding Additional Insured coverage was a simple task. There was essentially one endorsement that contemplated all the various facets of the coverage. This endorsement, CG 20 10 11 85 is referred to as the Holy Grail, and it is still referenced in many contracts that you will be asked to sign.

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The “11 85” indicates that this is the November 1985 version of the endorsement. This one endorsement provides Additional Insured coverage for both ongoing and completed operations for any liability arising out of the insured’s work. The endorsement also provides coverage for the sole negligence of the Additional Insured.

A Significant Coverage Gap Fast forward to today and there are more than 36 different ISO Additional Insured endorsements from the Insurance Services Office (ISO), plus all the custom manuscript endorsements that various carriers utilize. In addition, each of these endorsements has various edition dates. The coverage granted by each new edition is different and most often more restrictive than the edition before it. Most notably was the change from the “10 01” edition to the “07 04” edition which eliminated coverage for the sole negligence of the Additional Insured. So if your company’s General Liability policy contains the latest edition of the Owners, Lessees or Contractors Additional Insured endorsement, you don’t have coverage for the sole negligence of the Additional Insured which is allowed in states like New Jersey, even though Broad Form Indemnity is not allowed.

This can be a significant gap in coverage.

Before going into the specific endorsements every contractor needs, here are three examples of endorsements that are available: Additional Insured – Users of Golfmobiles; Additional Insured – Club Members; and Additional Insured – Users of Teams, Draft or Saddle Animals. The fact that these endorsements exist demonstrate how specific this coverage is.

8 Must-Have Endorsements Today, to match what CG 20 10 11 85 used to provide in coverage, you need to add the following eight endorsements to your policy: 1. Additional Insured – Owners, Lessees or Contractors (CG 20 10 10 01) Utility and Transportation Contractor, DECEMBER 2014

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This endorsement provides coverage for entities for whom the Named Insured is performing “On-going Operations” only. It does provide coverage for the sole negligence of the Additional Insured. It should be noted that later versions of this same endorsement do not provide sole negligence coverage and this endorsement does not provide any coverage for “Completed Operations.”

coverage provided by your policy is applied in the correct manner. When you provide Additional Insured coverage to a third party, they expect that your insurance policy will pay before their own. That is the whole reason they ask to be named as an Additional Insured. This endorsement ensures that your policy is primary and won’t require a contribution from the Additional Insured’s policy.

Additional Insured – Owners, Lessees or Contractors Completed Operations (CG 20 37 10 01) This endorsement provides coverage for entities for whom the Named Insured has “Completed Operations” only. Like the endorsement for On-going Operations, this version does provide coverage for the sole negligence of the Additional Insured. The later versions of this same endorsement do not provide sole negligence coverage and this endorsement does not provide any coverage for “On-going Operations.”

In addition to these eight endorsements, contractors that lease an office or land, perhaps for an equipment yard or satellite office, need to include two more endorsements on their policies: 1. CG 20 11 04 13 (Leasing of Premises) 2. CG 20 24 04 13 (Leasing of Land)

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Additional Insured – Engineers, Architects or Surveyors Not Engaged by the Named Insured (CG 20 32 07 98) Many times the contracts you sign, such as an AIA contract will require you to name the Architect or Engineer as an Additional Insured even though you did not hire them.

Again, the “07 98” version does provide sole negligence coverage whereas the new edition (“04 13”) does not provide it.

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Additional Insured – Engineers, Architects or Surveyors (CG 20 31 07 98) If you do hire the architect or engineer directly, you will need to use this endorsement to provide the required Additional Insured coverage.

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Additional Insured – Lessor of Leased Equipment (CG 20 28 04 13) Whenever you lease equipment, either a short-term or long-term lease, you will likely be required to name the Leasing Company (i.e. Lessor) as an Additional Insured.

All editions of this endorsement do not provide sole negligence coverage.

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Additional Insured – State or Governmental Agency or Subdivision or Political Subdivision Permits or Authorizations (CG 20 12 05 09) This endorsement applies to your operations performed by you or on your behalf for which the state or subdivision has issued a permit.

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Additional Insured - Designated Person or Organization (CG 20 26 11 85) This endorsement provides coverage for entities for whom you are not performing any work such as a bank or governmental entity. This version does include sole negligence coverage.

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Primary & Noncontributory – Other Insurance Condition (CG 20 01 04 13) Although not an Additional Insured endorsement, this endorsement makes sure that the Additional Insured

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To structure Additional Insured coverage correctly, you need to include all of these endorsements and specific editions or an insurance company manuscript endorsement that is equivalent. To complete the process, the schedules on these endorsements which outline who is granted Additional Insured coverage should be completed with what we call “Blanket Wording” such as “any organization or person as required by a written contract or agreement, but only to the extent such coverage is required.” If your company is involved in other operations, such as selling a product through vendors, you may need additional endorsements to adequately cover your exposure.

Beware of Shortcomings: There are many different Additional Insured endorsements in use today and most include some sort of shortcoming. The most common shortcoming is the lack of coverage for sole negligence.

This coverage is especially important in the situation where one of your injured employees sues the owner of the job whom you have contractually agreed to provide Additional Insured coverage. Many contractors and brokers make the mistake of assuming that requiring a party to pick-up another party’s sole negligence through Additional Insured coverage is prohibited because that state’s Anti-Indemnity Statute prohibits that practice. Indemnification and Additional Insured coverage are two separate doors with separate rules. New Jersey is a state that is a prime example of this because Broad Form Indemnification is not allowed, but picking up the sole negligence of the Additional Insured is permitted.

Other shortcomings include endorsements that contain a direct contract requirement in order to obtain coverage and endorsements that are not on a blanket basis and require every Additional Insured to be scheduled. Having to schedule individual Additional Insureds is an administrative burden, increases the likelihood of an entity not being added, which will lead to an uncovered loss, and provides the opportunity to the insurance company to charge you an additional premium every time a new Additional Insured is scheduled on the policy.

The topic of contractual risk transfer and how to properly structure your insurance program to meet the contractual requirements placed on your business is very difficult and complex. As contract requirements continue to change and losses continue to mount, it is only going to continue to get more difficult to do correctly.

About The Author: Carl Bloomfield is a Vice President at The Graham Company, the largest property and casualty insurance brokerage in the Mid-Atlantic region. Carl can be reached at cbloomfield@grahamco.com or 215-701-5420.

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Safety Perspective

REFLECTION ON SAFETY By: Dina Pomarico, Owner Of Phoenix Safety & Associates I am a daughter, a wife and a mother. I am the owner of my own safety company, Phoenix Safety & Associates, LLC. Unlike most other “women owned businesses” in the construction industry, I actually run the day to day operations of my company. I have worked conventions, performed many training sessions and have been on many job sites working with contactors on OSHA compliance and site safety.

When we do anything unsafely, we are not only putting ourselves in danger but also those we are working around and every person in our lives is affected by the unsafe decisions we make or are subjected to on our job sites.

I AM A DAUGHTER. My father was a wonderful, loving person.

He went to work every day from the age of 14 to work for his family.

He never missed a day, never took a day off, never let his company down. He pulled double and triple shifts whenever they needed him. He was one of those old-fashioned guys, who was loyal to his company and who’s first priority was making sure his family was taken care of. My dad was never late for work, he always left two hours early to make sure he arrived on time, with a 15 minute commute; he always worried about closed roads or accidents. He worked his way up from floor sweeper at age 14 to a black seal boiler operator 30 years later. My dad never would buy a competitor company product; he was a diehard company man. This company that my father was loyal to for 35 years was the reason my dad suffered terribly, surgery after surgery, living his last year on a feeding tube and dying at the young age of 54. My father died of Asbestosis, caused by the unsafe working conditions at his job, his home away from home. This company that my dad dedicated most of his life to exposed him and hundreds of other workers to asbestos. This hidden exposure caused by father’s illness. They 16

had an obligation to my dad and they failed miserably. He never failed them.

Poor working conditions and unsafe jobsites affect millions of workers a year all around the world and here in our own country, where we know all about the dangers and how to avoid accidents and injury. We are a country with so much emphasis and laws regarding workers’ safety and so many ignore it. We have employers who don’t train their employees, and who refuse to provide proper working conditions and PPE for their employees. We have employees that are provided training and choose not to pay attention, who are given PPE and refuse to wear it. We should care more about our employees and employees should care more about themselves and work as safe as possible. My dad did not have a choice, he worked in an unsafe environment and no one protected him. I am a daughter and losing my father so young had a huge impact on how I feel about safety and the obligation that companies have to protect their employees.

I AM A WIFE. I have sent my husband off to work every day for the past 23 years to work in the electrical field. Every day he goes to work there are so many potential hazards he faces and every day that he comes home safe and sound I am thankful. He is a safe worker; he knows the dangers of his job and takes them very seriously. He has been on many jobsites where safety was a joke. No one took safety seriously. The unsafe workers working around him exposed him to hazards and so many near misses. From working in a closed building with diesel equipment running without proper ventilation, to working around cranes where the signal person was not properly trained, to not being provided with lockout/tag out equipment to use when having to work on large electrical panels.

My husband has shared so many stories of how workers do not Utility and Transportation Contractor, DECEMBER 2014

take their own safety seriously and put others in danger all the time.

He has seen guys have accidents and lose time at work. He has seen near misses that could have resulted in deaths. The mentality is always the same,”I have been doing it like this for years and nothing happens”. Unfortunately for over 5,000 workers last year, something did happened, they died at work. Fortunately for me, my husband was not one of them. I am a wife and I thank God every day that my husband protects himself at work.

I AM A MOTHER. When I hear about young kids working on jobsites, perhaps for the summer, or working with dad, I instantly worry. The job site is no place for teenagers. They do not have the training, or experiences behind them to know the dangers of a worksite. We are putting them in the line of fire. When I read about young men working in the field, I am very concerned. When I read about accidents that have taken their young lives, I get angry. I think about my own kids and I cannot imagine what their parents go through. Young men and women on jobsites need to be mentored, work as apprentices. They need to be informed about the dangers of working on the job. They need to be protected; they need to be trained on PPE, OSHA safety standards and the hazards of the jobsites. These kids are young and impressionable, they will do what they see and if they are training with someone who has a total disregard for safety, they too will be less likely to learn how to

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protect themselves. These young men and women are our responsibility. We need to be ‘parents’ to them on the jobsites and protect them. I am a mother and if I sent one of my three beautiful children to work, I would expect that someone would train them and teach them how to be safe and protect themselves from potential dangers of their job. I would demand it.

I AM A BUSINESS OWNER. I preach safety. I teach safety. I started my company with all the other daughters, wives and mothers out there in mind. I want to help keep their fathers, husbands and children working in the construction industry safe from harm. I want employers to be responsible for providing safe working conditions and training for all employees. Through my site safety audits, I work very hard at changing the worker mentality on jobsites, PPE saves lives, thinking and preparing before starting a job task can prevent injury and no matter what these workers need to get home uninjured, without work-related illnesses and alive to their families who care most about them. Working unsafely is selfish, it is not only the worker who suffers the consequences of his/her actions if someone gets hurt or die at work, the spouse becomes the caretaker, the children lose a huge part of them, and the family is forever affected by those selfish actions. Please remember that your employees have families who need them to stay healthy and safe, an unsafe jobsite can drastically change lives forever.

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The Backhoe Adventure Sam Girlya 20

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Accounting Corner

BEWARE OF UNSOLICITED CALLS FROM THE “GOVERNMENT”!

By: Jerry J. Killian, CPA, CCIFP * Wiss & Company LLP Scammers have been in “business” for our lifetime, but it seems that the past few years they have significantly escalated their scams against individuals and companies. I am sure everyone reading this article has gotten a call over the past few years from someone representing to be from the IRS, a Governmental Agency awarding a “grant”, Sweepstakes Winnings and others. These Scammers are out to get your personal information including credit card numbers, bank account numbers, birthdates, social security numbers and even worse, getting you to send them money. Over the past year, I have received a number of calls from my clients after they receive such a call from a Scammer and they ask me “is this call for real?”

You are probably thinking that “this cannot happen to me or someone in my company”, but it is happening every day. Here are some common examples: · You receive a call from a “Governmental Agency” stating that you are eligible for free money from a governmental grant office and you were selected to receive the grant.

They ask for your business or personal checking account or credit card to “deposit the grant” or they ask you for a “one time processing fee” to be paid first. The caller will use official sounding names like “Federal Grants Administration” and will also reassure you that you can get a refund of your fee if you are not satisfied. · You receive a call from the U.S. Treasury (or IRS) leaving an urgent message that you owe back taxes for certain years, and if you do not pay, you will be arrested. The caller typically calls back multiple times or may leave a call back number. They often ask you to wire the money 22

so the back taxes can be settled. They also work in teams, where they will put a “supervisor” on the line to verify what you owe. · You receive a call from a “Sweepstakes Entry”. They excitedly tell you that you have won a large sum of money from their Sweepstakes. Although you do not believe you have entered a “Sweepstakes”, you continue to listen. The scammer typically asks for a good faith deposit, processing fee, tax withholdings- all through, of course, a credit card, wire transfer or a money order. Once you continue with the conversation, they will ask to “verify” personal information which you should not give to them! · IRS notifies you that your tax return was already filed.

Scammers get your social security number and file a 1040 personal tax return early in January before you do.

According to the IRS, they had close to 2 million identity theft problems in 2013. In a number of these cases, refunds were issued to the scammer as they changed the address or bank account number on the return of the legitimate taxpayer. Unfortunately at this time, refunds are issued well in advance (almost a year) of the IRS matching W-2’s and 1099’s to the tax return information.

The Facts First, if you receive such any calls from the above examples, hang up immediately. The IRS or a governmental agency does not communicate initially by phone. All initial correspondence from Utility and Transportation Contractor, DECEMBER 2014

the IRS or any governmental agency is through a letter in the mail.

The letter will include a contact person. If you receive such a letter, you should either call the IRS or governmental agency to verify its validity or give it to your CPA. Also, the IRS does not correspond through email. The State of New Jersey does correspond by email but only after you have had received a letter in the mail and had contact with them and are working on a matter with a specific individual.

The elderly are more susceptible to the scammers and you should make friends and relatives aware of these scammer calls. I personally had an 80 year old Aunt who was scammed into sending over $300,000 over a 4 month period for a Sweepstakes winning she never entered! As with most seniors, she failed to discuss her “winnings” or the monies she was sending with any family members or close friends until it was too late.

What You Should Do The first thing you should do is make sure your family, friends, employees are aware of these scams and to not give any information on the Company or any individual over the phone. Request the person calling that a letter be sent in writing, then hang up. If you have caller ID, write down the phone number of the person calling.

You can help and report whatever information you have. You should report the call to the Federal Trade Commission (FTC) at 877-4384338 (ftccomplaintassistance.com) and for the IRS call

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impersonation, fill out a form at www.treasury.gov/tigta. If you owe Federal taxes, or think you might owe taxes, you should call the IRS at 800-829-1040 to verify any amounts that are owed.

If you are the victim of identity theft or if someone already filed a tax return in your name, you should call the IRS at 800-908-4990 and report the incident. In addition, you will need to file IRS Form 14039 to prove your identity. This form will need to include copies of your driver’s license, passport, birth certificates and other documents to prove you are the actual person. This form must be filed when someone already filed a tax return in your name and should be filed to protect your identity if you know or suspect identity theft as occurred. Please be advised that that are many other thing you need to do once identity theft has occurred. You can get more information at www.irs.gov/Individuals/IdentityProtection.

About The Author . . .Jerry Killian, CPA, CCIFP is the partner in charge of Construction Services at Wiss & Company LLP. Wiss, through its offices in Iselin, Flemington, Livingston and NYC provides construction specific accounting, tax, consulting and outsourced accounting services to the Construction Industry and many UTCA Contractor Members for over 25 years. Jerry can be reached at 732-283-9300 or jkillian@wiss.com.

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Labor Relations

NOTICE TO CONTRACTORS! IT’S TIME TO REVISIT THE ISSUE OF MISCLASSIFYING EMPLOYEES AS INDEPENDENT CONTRACTORS By: Jill Tobia, Esq., Tobia & Sorger A recent study performed by the United States Department of Labor (“USDOL”) maintains that thirty percent (30%) of construction industry companies misclassify employees as independent contractors. It is therefore no surprise that this issue has already received a considerable amount of attention from not only the Internal Revenue Service (“IRS”) but also State Departments of Labor. In fact, the New Jersey Department of Labor (“NJDOL”) now has a division specifically devoted to the investigation and enforcement of a New Jersey law known as the Construction Industry Independent Contractor Act, N.J.S.A. 34:20-1 et seq., which is directed at eradicating such misclassification. The New Jersey Legislature also has several bills pending which all seek to further expand the investigation efforts and penalties for independent contractor misclassification. With governmental efforts ramping up daily, it is prudent for every construction industry contractor to revisit this issue and ensure that its workers are classified properly.

Construction Industry Independent Contractor Act: Under the Construction Industry Independent Contractor Act (“Act”), the New Jersey Legislature expressly finds that: employers in the construction industry who improperly classify employees as independent contractors deprive these workers of proper Social Security benefits, while reducing the employers’ State and federal tax withholdings and related obligations.

Moreover, this practice puts businesses that bear higher costs for complying with the law at a competitive disadvantage.

N.J.S.A. 34:20-2 (emphasis supplied). The Act therefore imposes significant fines as well as criminal penalties for knowing violations and repeat offenders. Additionally, the NJDOL also has the ability Utility and Transportation Contractor, DECEMBER 2014

to debar a contractor found to have engaged in such misclassification.

Compliance with the Act is generally investigated with the issuance of an audit letter from the NJDOL, which seeks among other documents 1099s issued to independent contractors. The NJDOL auditor then engages in an analysis of whether the classified independent contractor truly operated its own business and had the right to control the work performed as well as to accept work from other sources. While there is no hard and fast rule, the most important factors focus on the independent nature of the business and all the indicia of the same including whether or not the business has a tax id, business license or registration, equipment, phone number, office location, insurance and customers.

Advice for UTCA Contractors: The issue of misclassifying employees as independent contractors may seem simplistic but it is still often overlooked with all the other challenges facing construction industry employers. All UTCA contractors should therefore examine all of their independent contractor relationships to ensure that these relationships meet the legal requirements. An internal audit with the help of legal counsel can prepare the employer for a NJDOL inquiry and ensure that the contractor maintains the proper documentation for any independent contractor that it employs. With governmental enforcement efforts in the construction industry on the rise, it is likely that the majority of UTCA Contractors will be impacted by a random NJDOL audit addressing this misclassification issue. However, with a proactive and informed approach, UTCA contractors can avoid costly investigations by examining and documenting its independent contractor relationships before they are questioned.

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Financial Overview

EIGHT LENDING FAQs YOU SHOULD KNOW THE ANSWERS TO IN 2015 By: William J. Ruckert, Provident Bank Banks are the construction industry’s best friend, providing companies with the strategic insight and creative solutions that allow them to survive and thrive. In such a beneficial relationship, you’d think that the parties would see each other through crystal clear eyes. But no matter whom I talk to in my daily dealings with the industry, from contractors to suppliers and surety agents, banks are still a riddle wrapped in a mystery inside an enigma.

I’m clearing up some of the riddles about the lending process so that, come 2015, you’re ready to leverage this relationship to maximal effect.

1. What does the bank consider to be the most important aspect of a lending relationship?

Banks use the “5 C’s of Credit” to determine the credit worthiness of potential borrowers and their risk of default. Of the 5 C’s— Character, Capacity, Capital, Collateral, and Conditions— Character carries the most weight. Banks want to ensure that borrowers are dependable and trustworthy enough to repay their loans. If borrowers don’t have the character to make good on a loan or credit line, the rest of the C’s hardly matter.

2. What’s a major red flag for banks initiating or expanding a lending relationship?

Poor financial reporting. Banks use financial statements to assess borrowers’ ability to repay loans. If your statements don’t conform to the 3 T’s—Transparency (honesty and accessibility) Timeliness (relevance to the company, its supporting entities and the reporting period) and Typicality (follows prescribed reporting models and generally accepted accounting principles (GAAP)), banks will consider it a major red flag, which could be detrimental to your borrowing capacity.

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3. How much emphasis does a bank place on WIP and Back Log reports?

Work in Progress and Back Log reports are a critical determining factor in the lending process. It’s imperative that you keep accurate and updated reports on current jobs that include the original and revised contract amount, the original estimated cost and profit, actual cost incurred to date and revised estimated cost to complete.

Banks will decide whether to lend largely based on how you’re performing on current jobs and how much work you’ve secured in the future.

4. Why is a personal guarantee so important to banks?

A personal guarantee is an unsecured promise from an individual to make loan payments when a business is unable to do so. It’s another way for the bank to ensure recovery of its assets. By putting their personal finances—which are often tied up with the business anyway—on the line, business owners are more committed to repaying their debts. They’ve put skin in the game. A personal guarantee is also a reflection of the number 1 C: Character.

Although there is some risk in signing a personal guarantee, you’ll be able to secure loans that may otherwise be denied. Consider the terms of the loan and guarantee agreement carefully, but keep in mind: if you plan closely and make wise financial choices for the business, the bank will most likely never pursue your personal assets.

5. Why don’t banks lend on retainage?

Banks will not take retainage into account when considering lending to your company because there is no guaranty when or if it will be paid in full. Banks can’t lend on such uncertainties. Projects Utility and Transportation Contractor, DECEMBER 2014

can be delayed or unfinished for reasons out of the borrower’s control. That’s not reassuring to a bank risking its assets.

6. How does a capital expenditure line of credit work and what are the benefits?

A Capital Expenditure Line of Credit allows you to purchase fixed assets (like new or used equipment, real estate or leasehold improvements) that add long-term value to the business without tying up working capital. After establishing a pre-approved CAPEX LOC, you may tap into it whenever necessary and make multiple advances over the life of the line. Once the term ends, your outstanding balance is converted to a predetermined term loan with a competitive fixed or “floating” interest rate and an amortization period based upon your cash flow.

The benefits of CAPEX LOCs are numerous, including leveraged working capital, improved cash flow, controlled infrastructure costs, mitigated equipment obsolescence and streamlined equipment purchasing.

7. How do I increase my working capital line of credit, especially during early season start up phase?

This is a conundrum many seasonal companies face. The most common solution is a “seasonal over-ride” loan that is short term in

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nature (i.e. 90-120 days) to allow the borrower to rebuild cash flow.

It can be added to the existing line of credit or extended as a time note. Borrowers should obtain a formal commitment from their bank ensuring that financial support will be in place when it’s needed.

8. Can I borrow against the equity in my equipment?

Yes. If you own heavy construction equipment free and clear, you can use it as collateral to secure a working capital loan, or you can refinance it, providing a cash infusion to the capital account.

This is an easy, quick and unfettered way to improve your company’s cash flow and capital needs.

To further demystify the lending process, please contact the author.

About The Author . . .Wm. J. Ruckert III is senior vice president of middle market lending at Provident Bank. Based in Provident’s Iselin office, Ruckert oversees commercial financing for companies with sales of $15 million or more. He holds a bachelor’s degree in business administration from Loyola College in Maryland.

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WITHUMSMITH+BROWN CELEBRATES 40 YEARS IN BUSINESS

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STEVE BRAWER RETIRES AS UTCA LEGAL COUNSEL

Long-time Construction Advocate Successful In Important Industry Cases

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hroughout the 49 year history of the Utility & Transportation Contractors Association of New Jersey, members have seen the growth of membership, expansion of staff and several changes of venue to service the construction industry. However for more than 30 of those years, there was one constant: Steven Brawer served as the association’s Legal Counsel. Throughout his illustrious career, Steve Brawer worked tirelessly as one of New Jersey’ strongest industry allies and was one of the key cogs in the successes of the UTCA.

Steve Brawer received his undergraduate degree from the University of Pennsylvania prior to attending George Washington University Law School. After receiving his law degree, Brawer embarked on his first job in the legal profession in his hometown of Paterson as a clerk for the Honorable Theodore D. Rosenberg of the Superior Court of New Jersey.

Steve and Rena Brawer are pictured at the UTCA convention.

Steve Brawer inducts Juan Gutierrez as UTCA President in 1987.

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After his judicial clerkship and successfully completing the bar exam in New Jersey, Steve joined the law firm of Lum, Biunno & Tompkins in 1975 as an associate. His scope of work during those early days was focused mainly on insurance defense work and involved some of the initial asbestos-related lawsuits as a defense attorney.

Following his stint with Lum, Biunno & Tompkins, Brawer moved on to work with Richard Rosenberg, who at that time was the attorney for a young organization known as the Utility Contractors Association (UCA).

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During Steve Brawer’s tenure as UTCA attorney, he successfully argued numerous important industry legal challenges with the assistance and support of Adrienne Isacoff. Many of the actions taken involved Local Public Contracts Law issues as a representative of the UTCA and its members. On an important case in Middlesex County, Brawer succeeded in upholding the spirit of the law involving 2% retainage on projects. Another key case was the G. Helmer Construction and Utility & Transportation Contractors Association of New Jersey vs. the Monroe Municipal Utilities Authority in which the public owner required the successful bidder to have an approved health and hospitalization plan, an approved pension plan and an approved apprenticeship training program.

The court found these clauses to be “contrary to law, null and void and of no legal force or effect.” Steve Brawer was successful in additional cases on this issue following the Helmer decision.

The late Bob Briant makes a presentation to Steve Brawer in the 1980’s.

It was through this affiliation that Steve was first exposed to construction law and the group that would become the UTCA. After gaining admission to the New York bar in 1981 Steve formed the firm of Brawer & Green in the mid 1980’s. At that time the Utility & Transportation Contractors Association, which had diversified to include both utility and highway contractors, began a search process for a new association Legal Counsel. Bob Briant, Sr., the chief executive of UTCA at that time, and Cos Pedicini of Spiniello Construction were heavily involved in the screening of applicants before selecting Steven Brawer as the UTCA Legal Counsel.

During his tenure at Brawer & Green Steve began working with Adrienne Isacoff to service the construction industry and the Association. The close affiliation with Adrienne would continue throughout Brawer’s career and she was a close friend and an invaluable source of knowledge, support and wise counsel.

Pictured left to right at a UTCA Executive Seminar in Italy are Lisa Post, Rena Brawer, Steve Brawer, Elaine Cruz and Evaristo Cruz.

Pictured with Steve Brawer is his long-time associate Adrienne Isacoff.

As UTCA grew as an organization, Steve Brawer also continued to hone his skills as a construction attorney. His firm of Brawer & Green merged with Cole, Geaney, Yamner & Byrne in the mid 1980’s and a few years later he joined Mandelbaum, Salsburg, Gold, Lazris, Discenza & Steinberg. In the mid-1990’s, Brawer moved on to Ravin, Sarasohn, Cook, Baumgarten, Fisch & Rosen.

In February of 2000, Steve would make his final career move when he created the construction practice group with the prestigious law firm of Lowenstein Sandler. He shepherded the construction practice until his retirement earlier this year.

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Two landmark cases in which Steve and UTCA were involved addressed union jurisdictional requirements. As a brief history lesson, one of the reasons why utility contractors formed the UCA as an industry organization in 1965 was to address a regulatory requirement that firms installing pipe outside of buildings would be required to hold a master plumbers license. Utility contractors had traditionally installed outside piping with employees from the Laborers’ Locals 172 & 472 without the direct involvement of licensed plumbers and were able to obtain an Attorney General’s decision affirming this sensible arrangement. A challenge was filed in 1991 by licensed plumbers to overturn this decision and Steve Brawer, UTCA and the Laborers’ unions joined forces to defend the original opinion. Once again, Steve’s efforts were instrumental in advancing the interests of the utility construction industry.

The second case involved the installation of empty underground conduit that would be used to house electrical wiring. UTCA contractors also had historically utilized Laborers to install this conduit, however the New Jersey Board of Electrical Examiners ruled that such work had to be performed under the auspices of licensed electricians. The ruling was challenged in court and once again Steve Brawer prevailed for the heavy, highway and utility construction industry.

Although there have been many important construction-related cases in which Brawer participated, there is clearly one case that stands out among the others: George Harms Construction vs.

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The late Congressman Bob Franks shares a laugh with Steve Brawer at the UTCA convention in 2000.

Construction was the apparent low bidder on a widening project for the Turnpike. However, the Turnpike had adopted a resolution requiring contractors awarded contracts on the widening project to enter into project labor agreements (PLAs) with Building and Construction Trades Council (BCTC) unions. When the Turnpike rejected all bids on the project to adhere to the new resolution, George Harms Construction and the UTCA challenged the resolution in the Superior Court of New Jersey, Appellate Division, which upheld the Turnpike resolution. The Supreme Court of New Jersey granted certification of the case and heard oral arguments in January 1994. Steve Brawer made compelling arguments for the plaintiffs and on July 7, 1994 the NJ Supreme Court reversed the Appellate Court’s decision! The Harms case has since been used as a test-case throughout the country on challenges to public sector PLAs. The issue was revisited a year later in the Tormee Construction vs. Mercer County Improvement Authority, which involved a requirement for exclusive utilization of BCTC organizations on a major library construction project. Steve Brawer was successful in challenging a PLA on this project when the NJ

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Supreme Court issued an order declaring invalid the PLA specification and directing the removal of those clauses from the contract documents.

Throughout his long career Brawer represented some of New Jersey’s most successful contractors. This list includes Earle Asphalt, Berto Construction, Schifano Construction, Anselmi & DeCicco, D’Annunzio & Sons, George Harms Construction, PKF Mark III, Northeast Remsco Construction, Agate Construction, Union Paving, George Helmer Construction, Mount Construction, J. Fletcher Creamer & Son, Ferreira Construction, the Conti Group, Green Construction, LAD Construction, Ole Hansen & Sons, RAC General Contractors and South Jersey Paving. As the UTCA attorney, Steve has always provided important advice to the association’s Board of Directors and has been a key factor in UTCA’s successes throughout the years. He has served as a presenter at seminars, contributed regular Legal Dig articles for the UTCA magazine, conducted the election of Association officers and Board members and for many years inducted the new UTCA president at the annual Atlantic City convention. He has provided assistance with legislative initiatives and worked with OSHA representatives throughout the years, most notably with James Stanley, the former U.S. Assistant Secretary of Labor for Occupational Safety & Health and one of the most respected experts in occupational safety in the country.

Steve is proud of the many friendships that he and his wife Rena have made through affiliation with the UTCA. Some of these people include Tony Vazquez and his family, Frank Renda, Phil and Dale Schifano, Ed and Jill Nyland, George and Ruthie Harms, Juan and Marta Gutierrez, Bob and Paula Carney, George Helmer, the late Walter Earle, the late Carmen Yacuzzio and, of course, the late Bob Briant, Sr. As Steve Brawer enters the next chapter of his life, he and Rena have moved to southern California to be near their son Michael.

On behalf of the UTCA Officers, Board of Directors and Staff, we thank him for his many years of service and wish him a happy and healthy retirement.

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TRUE & ASSOCIATES CELEBRATES 30 FRENCH & PARRELLO CELEBRATES YEARS IN 40 YEARS IN BUSINESS BUSINESS Geotechnical Engineering Firm Expands Services Throughout The Years

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PILE DRIVERS SHORE UP NEW JERSEY’S SUPERSTORM DEFENSE

By Brian M. Fraley, Fraley AEC Solutions, LLC The streets on the barrier island town of Mantoloking, NJ, are alive with construction activity on an unseasonably warm day in November of 2014. Heavy equipment is rolling and crawling.

Hammers are pounding on lumber. Hard hats and safety vests dot the landscape. And the smell of asphalt and fresh lumber competes with the salty aroma of the ocean. Progress is underway, but it came at a price.

The Borough of Mantoloking was among the areas hardest hit

by Hurricane Sandy in October of 2012. The powerful imagery was witnessed around the world as this post-tropical cyclone pounded the New Jersey coastline, leaving in its wake fatalities, stranded residents, mangled homes, crumbling infrastructure, and felled telephone poles. The ocean met the bay in up to five breach areas, forcing first responders to navigate the town in boats.

To Protect Critical Infrastructure As the 2014 hurricane season rolled in, a crew of workers from Springfield, NJ-based EIC Associates was working feverishly to reduce, if not completely eliminate, the possibility that future superstorms would repeat history by installing just over 3.5 miles of steel sheet pile wall along the beach for the New Jersey Department of Environmental Protection’s (NJDEP) Bureau of Coastal Engineering. The keystone of the project was a pair of Germanmanufactured RTG Rammtechnik GmbH pile drivers rented from the Aldan, Pennsylvania office of Equipment Corporation of America (ECA). The scope of this $23.5-million project – part of a much larger beachfill project by the United States Army Corps of Engineers (USACE) – entails driving the sheet piles, and installing bent plate caps and geotextile anti-scour aprons. Project Manager Derek Serpe and Project Engineer John Caya are leading a gung ho team that works as if driven by a higher purpose. EIC, specializing in heavy and marine construction projects in New Jersey and New York, is no stranger to working under pressure on high-profile projects.

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One of only two bidders on a project to construct visitor docks at the Statue of Liberty, they faced liquidated damages of $10,000 a day and delivered the project ahead of schedule and under budget.

The objective of this indomitable wall of steel is to protect a $265-million investment by the New Jersey Department of Transportation (NJDOT) in the 12.5-mile reconstruction of Route

The RTG 21 T prepares to hoist a steel sheet pile prior to pile driving. The narrow work space was positioned between the dunes and the ocean.

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Dirk Himborg, left, RTG Rammtechnik GmbH Sales Director for North America, Chas Raysik, ECA Sales Engineer and EIC Project Engineer John Caya, observe the fast-moving piling driving operation.

35, initiated 10 years ago to address pavement distress and drainage issues along this coastal emergency evacuation route. The project was accelerated when Hurricane Sandy demolished the infrastructure. The wall will also exist to protect Mantoloking’s residents, homes, and commercial buildings.

Two Rigs with Custom Jaws The equipment-intensive project hinges on two RTG pile drivers rented from ECA, a prominent distributor of specialized foundation construction machinery for heavy commercial, civil, mining, and marine construction projects with East Coast and Canadian locations and a legacy dating back nearly 100 years. The RG 19 T and RG 21 T pile drivers with telescopic leaders fueled EIC’s high level of production. Maintenance of the equipment, championed by ECA’s Sales Engineer Chas Raysik and a highly skilled service department, was also critical since downtime was unacceptable on this deadlinesensitive, momentum-driven operation.

Serpe speaks with a calm and collective demeanor, suggestive of EIC’s bold, performance-driven culture. When he talks of an “unmatched level of service,” his sincerity is genuine. It’s apparent that both contractor and distributor are aligned on the importance of maintaining the schedule. “We’ve had instances where it’s the middle of the day on Saturday and something is broken,” Serpe recalls. “We called Chas and there was a mechanic out there on Sunday. By Monday at 7 a.m., we were back to work.” It’s apparent that this 10-year partnership remains intact based on personal service where the head of ECA’s service department turns over a personal cell phone number to pile driver operator Rich Kaminski.

The thickness of the interlock between the cold rolled steel beams required the fabrication of customized jaws for the RTG pile drivers, according to Raysik. RTG fabricated and shipped six sets of jaws from Germany to keep the project on track.

“I think the biggest obstacle we faced,” Serpe says, “were the large interlocks of these cold rolled sheets and the brittleness of sheets.” The interlocks of cold-rolled sheets are looser than those of hot-rolled steel. EIC needed a jaw design that would match the driving rate of hot-rolled piles, while reducing strain on the RTG pile drivers. The extra play in the interlock also required close attention so the caps would fit properly.

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Pile Driving Power The sheer power of the RG 21 T pile driver can be felt as steel vibrates against steel high above. Sand particles rain down lightly and the beach flexes as the 45-foot-long steel pile seems to slide into sand with the ease of a candle pushed into a birthday cake.

Dirk Himborg, RTG Rammtechnik’s Sales Director for North America, describes the operation over the staccato pounding of the high-frequency vibrator overhead. He makes a machine-gunlike noise to mimic the sound of 3,000 rounds of vibrations per minute administered by the RG 21 T. It starts with ensuring that the holes drilled in the sheet piles are symmetric so operator Rich Kaminski can properly hoist and set them in place with the RG 21 T. Once the hammer is properly positioned atop the pile, the vibrator ramps up to top speed and the descent begins. Because the sand is non-cohesive, the vibration essentially displaces the material in what he describes as a “fluid condition.”

Production…Down to a Science On this unseasonably warm day in November, the RG 21 T and supporting crew are moving steadily south immediately in front of mostly vacant multi-million-dollar summer homes. The ground crew threads the chain through the sheet pile and interlocks the clevis into the rear of the hammer’s clamp housing. The RG 21 T almost instantly hoists the sheet into an upright 90-degree position and swings roughly 180 degrees to meet two workers positioned near the falsework in the sand. The sheet-pile is carefully guided into place before the vibration begins.

The thickness of the interlock between the cold rolled steel beams required RTG to promptly fabricate six sets of customized jaws for its pile drivers.

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Watching the crew advancing methodically down the coastline defines the old cliché “down to a science.” There is barely a moment of downtime between pile driving and hooking up the next pile.

Four factors drive these five-man crews: the RG 19 T and RG 21 T pile drivers; a critical path schedule; reducing impact to the neighbors; and competition between crews.

The presence of two crews created this friendly competition. As the RG 21 T team huddled for a quick lunch break, some friendly sparring ensued. “There is no competition,” says EIC’s Brett Rovani, a burly Local 454 Dockbuilder Foreman. Laughter ensues.

“They can’t keep up with us.” It’s obvious he takes production seriously judging by his handle on production rates across projects.

“We’ve got it down to where we’re doing a sheet every six minutes,” he says proudly. He attributes a great deal to the RTG pile drivers, describing them as “well-built.” and “superior” to the competition.

“These rigs work in many environments,” Himborg says, competing with the reverberating sound of steel-on-steel. “This is a perfect job for a high-performance machine like ours because it’s a long stretch of sheet pile wall and you can really maximize production.” The use of double sheets, he adds, doubles production time.

This $23.5-million project required $17 million in steel from Middletown, NJ-based Skyline Steel, which mobilized a rotation of 15 truckloads from June 23 through Labor Day. “With this equipment,” Serpe said of the RTG pile drivers, “I can drive the sheets as fast as we can get them on the job.”

“Overall it’s been a great experience,” continues Serpe. “It’s much better than a traditional crane with a hammer.” From the clockworklike handling of the sheets to the speed with which they enter the sand, it’s clear that the RTG pile drivers with high-frequency vibration enabled this level of production. Raysik chimes in, adding that a suspended hammer relies on the weight of the hammer, whereas high-frequency vibration capitalizes on both downward force and vibration.

Keeping Piles Plumb Himborg seems to know the operation as well as his machinery as he rattles off specs. He says the RTG pile drivers feature an Automatic Self Leveling function to ensure that sheets are plumb, which is mandatory on this project. “During the driving process, the mast is being monitored,” he explains. “When the mast goes a bit off of being plum, it automatically comes back.” A ground man with a hand level verifies plumbness as the pile vibrates into the sand.

Steel I-beams pinned in the sand serve as falsework to ensure the plumbness of incoming piles. Serpe explains that keeping the sheets straight is critical to ensuring that the bent plate cap fits on top properly. “Most people that come out here and see a cold rolled sheet installed this straight want to go and shake the foreman’s hand,” he says, indicating that this is rare.

Tight Working Space The worksite, framed by a towering dune and stockpiled steel sheets, is not much wider than a couple bowling alley lanes. Just above the dune, a curious neighbor watches the pile-driving operation from his deck as the RG 21 T vibrates a sheet into the sand.

The vibration, powdery consistency of the sand, and gravity constantly work to level the material, further narrowing the channel.

A small fleet of excavators and bulldozers worked ahead of the pile driving operation to maintain the right-of-way.

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“In this area, you can’t get any more of an easement or you’ll be in someone’s living room,” Serpe says with a laugh. The wall was designed to follow the easement between the shoreline and the dunes, while adhering to residential property line setbacks, and tying into the future beachfill project. This required close coordination with the USACE and the NJDEP. Working in the Sand Working on the beach presents unusual challenges, including wear and tear on the equipment. While gravity returns much of the fine white sand to the beach, it sticks to lubricated areas such as joints and within the tracks of the pile drivers. The resulting friction can be damaging, according to ECA’s Raysik, who works to eliminate any downtime associated with the RTG pile drivers. The

EIC’s ground crew threads the chain through the sheet pile and interlocks the clevis into the rear of the hammer’s clamp housing.

salty air can also increase corrosion. Another challenge is the constant clogging of air filters by airborne sand, which reduces the performance of the equipment. EIC’s full-time maintenance crew fought this battle by blowing them out bi-weekly.

Mobility was the next challenge since wheels and tracks slide in soft sand. EIC increased traction along the work corridor with a geotextile fabric base topped off with crushed stone. “It’s an incredible amount of effort just to get the steel where you need to install it,” says Serpe of the sandy site. He attributes much of the credit to EIC’s skilled operators. The steel sheets – 45-foot-longby-4.9-foot-wide – tip the scales at 7,000 pounds. Each pile was dragged by a bulldozer from a nearby staging area to its final destination.

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The geotechnical aspect of this project is intriguing for anyone that has tried to drive a beach umbrella into soft sand. The surface layer is fine beach sand, below which is a layer of black sand, clay, and an additional layer of fine sand. Himborg explains the science as the operation unfolds. “It’s all about friction,” he explains, indicating that the high water table is helpful. “When you come to a water-saturated area, it acts like a lubricant and facilitates the penetration process.” The steel sheets essentially displace the sand as they are driven.

The RTG pile drivers feature an active push system, according to Himborg, which allows the machine to plow through dense materials such as clay. The sand on this project was obviously no match for the RTG’s. While EIC occasionally encountered clay at the tip elevation, the pile drivers were met with little resistance. Drive time hovered between two and three minutes 95 percent of the time. He describes the situation as “putting the brakes on the hammer” when the sheet breaks through the clay below and needs to be stopped by the rig. Serpe indicates that the power of the RTG’s was the defining factor in punching through the heavy layer of clay beneath the beach.

Invisible Protection EIC will not only deliver protection to the barrier island of Mantoloking, but the finished project will restore the beach to its

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original appearance. This is the first phase of a $300-million USACE beachfill project that will build up dunes, a berm, and extend the beach by 200 feet between the Manasquan and Barnegat Inlets.

When all is said and done, Mantoloking will return to the bucolic island atmosphere that residents have traditionally enjoyed. But it will be stronger. This wall of steel will be a distant memory, disguised by dunes. “You’re never going to see this wall,” says Serpe as waves crash gently nearby, “and it’s the last line of defense, if God forbid, the big storm ever comes again.” It seems like a small price to pay.

Sidebar: In early October, EIC attracted national media attention by unearthing a 19th Century shipwreck while driving piles with an RTG piling rig. A cease and desist order was issued to allow archaeologists and shipwreck historians to determine the identity of the old wooden vessel. At the time of this writing, it is believed this could be a Scottish ship known as the Ayrshire, which was carrying Irish and English immigrants to America. Two-hundred passengers were on the ship and all but one were rescued. The investigation and further excavation on this portion of the jobsite continued alongside of the construction.

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IS YOUR EMPLOYEE BENEFITS PORTFOLIO MEETING THE NEEDS OF YOUR EMPLOYEES? Providing Benefits That Offer Something For Everyone At A Cost You Can Afford

By: Nancy Damato, Partner, RDA Benefit Services As we all know, the cost of employee benefits continue to rise. And the initial response to cope with these increases is to reduce the benefits and ultimately, hope to reduce the costs.

But did you consider that, if you offered the right package of benefits, you could actually offer an enhanced package to your employees at a reasonable price?

In addition to various health insurance plan options, including high deductible plans, there are now self-funded plans and private exchanges that offer additional savings and options to employers. Combine this with a health savings account, health reimbursement arrangement or a flexible spending account, and both the employer and employee can enhance their benefits, while saving money.

Complement these with a dental and vision plan, either on a company paid or voluntary basis, and you have the basics of a solid foundation.

Offering additional benefits doesn’t have to mean more cost to the company.

Offer additional benefits, such as Voluntary Benefits, where employees can choose plans that meet their individual needs— from life, disability, critical illness, accident and cancer insurance.

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Even supplementing these benefits with a Workplace Wellness Program can have a positive impact on your workforce, on many different levels. According to a 2010 Harvard study, for every dollar employers spent on wellness programs, healthcare costs dropped an average of $3.27 for every dollar spent and absentee day costs fall by about $2.73 for every dollar spent. Lowering absenteeism and having healthier employees can lead to more productive personnel!

Telemedicine is another benefit that has proven to lower the costs of healthcare, as a very effective alternative to emergency room and urgent care center over-utilization.

The other important component to offering a successful, well-rounded benefits package is employee education.

Employees are far more likely to be engaged in their benefits if they are fully aware of how they work and what they have to offer. And what better way to attract the kind of employees you are looking for, than by having an exceptional employee benefits package.

So, at your next health insurance renewal, take some extra time to explore what can make your benefits package even more attractive and cost-effective for both you as the employer and all the employees. Benefit costs are second only to payroll, so give them the attention they deserve to make sure your money is well spent.

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Featured Article

CAMPBELL MATERIALS COMPLETES TEN YEARS IN BUSINESS Firm Has Grown Dramatically Since Inception

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n the early 2000’s, Campbell Foundry management was looking for ways to grow their 80 year old Company. A strategy was discussed to grow vertically: offer a complete line of constructionrelated products to its current base of loyal customers while continuing to encompass the same ideals the original business was founded upon: knowledgeable sales, customer service and competitive pricing.

The Materials Division is located at the Campbell Foundry storage facility at 1235 Harrison Ave. in Kearny, New Jersey. The operation which began with just three employees, has grown to more than a dozen. With the creation of this new Division in the existing Campbell Foundry castings Distribution Yard, existing Campbell customers were able to view the new Materials Division product lines. This enabled a one-stop shopping convenience for contractors and allowed Campbell Materials to grow. Additional office, yard personnel and drivers were hired and delivery trucks were purchased to meet the demand for the products. By 2009, Campbell

Materials had outgrown its 420 square office and moved into a new 1200 square foot facility on the same site. In 2013 Campbell Materials opened a second location at 630 South Hope Chapel Rd. in Jackson, NJ, and has seen great support in the Ocean County area. The new business has grown ever since.

Campbell Materials General Manager Leon Theodorou, second from left, is pictured with the firm’s employees at the Kearny office.

Pictured at the Jackson facility are Derrick Gadsden and Chris McCoy. 62

The rapid growth of sales, as well as the creation of the Jackson facility, has required additional staff to service the firm’s customers.

In Kearny, Campbell Materials General Manager Leon Theodorou is joined by Gene Puc, Rhoan Brown, Damarys Mendez, Karen Reilly and Denis Ford in the office, Brahyan Quintero and Harris Freeman operating the forklifts and Lou Tolentino and Mike Thomas driving the delivery trucks. In the Jackson location, Chris McCoy manages the office and Derrick Gadsden handles the forklifts and the delivery truck.

The parent company of Campbell Materials has been an institution in the construction industry for many years. It is rare to find a road in New Jersey that does not have Campbell Foundry castings on it.

Campbell Materials now furnishes everything installed UNDER the Utility and Transportation Contractor, DECEMBER 2014

The Materials Division was able to grow from the existing Foundry customer base. With these long-standing business relationships, Campbell experienced a seamless transition into the material supply market. With Leon’s help, the outside sales team for Campbell Foundry, which includes Rocco Tancredi, Pete Pasquariello and John Pisciotto, were able to bring their Iron sales experience to the Materials side of the business.

Campbell Foundry is well-known to UTCA members as a longtime associate member firm of the group as well as a regular advertiser, an exhibitor at the annual trade show, an event sponsor and a participant on committees. Every year, the firm presents a personalized manhole cover to the outgoing President of the UTCA during the association’s annual convention. The development of the Materials Division gives management the avenue to grow its “Campbell Brand” into new areas of the construction industry.

Whether its geotextiles such as silt fence, erosion control fabric or inlet filters, pipe products like valves, hydrants, fittings, meters, copper tubing and couplings, or electrical supplies including junction boxes and handholes, Campbell Materials can accommodate the contractor.

Campbell Materials could not be where it is today without its loyal customers. According to general manager Leon Theodorou: “Our customers knew Campbell Foundry and trusted they would see the same service from Campbell Materials”. “We work hard to exceed their expectations.” The Campbell Materials product list Precast structures are pictured at the Campbell Materials yard.

casting. From precast such as inlets and manholes, to pipe and fittings for storm, sewer, water and electrical utilities. As Campbell Materials sales likes to say, “If you need it, we’ve got it.”

Starting with a small number of vendors, Campbell Materials now has dozens of suppliers of products used in the construction of all underground utilities. Manufacturers that supply the Campbell team include Crumpler Plastic Pipe, Precast Manufacturing, Lane Enterprises, US Pipe, JM Eagle, National Pipe & Plastics, Heritage Pipe, Hanes Geos, Western Excelsior, Ford Meter Box Company, Sigma Corporation, EBAA Iron, GPK Fittings, Cultec, Carthage Mills, Coastal, Hanson and United Concrete Pipe.

The parent company, Campbell Foundry and Bridgestate Foundry in Berlin, NJ, has been in business since 1921 and is the predominant casting supplier in New Jersey. Campbell Materials offers an opportunity for Campbell to grow the brand.

Large diameter concrete pipe is installed.

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A pipe connection is completed on a recent project.

continues to grow based on the needs of the customers. “We built our product line through the help of our customers; to have it when it’s needed”, exclaimed Theodorou. He further elaborated: “We have always prided ourselves on hard work and impeccable customer service at a competitive price.” “It’s a small role we play but it’s extremely gratifying helping our customers build better infrastructure.”

From an idea that formed as the brainchild of the company’s principals, Campbell Materials has certainly made its mark on the construction industry in its ten years in business. Their great grandfather, John Campbell, who founded Campbell Foundry in 1921, would look with pride on this new direction his original venture has undertaken.

It should be no surprise that the firm has achieved such rapid growth and success. Knowledgeable sales, customer service and the right price: the Campbell motto.

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Legislative News

FEDERAL & STATE UPDATE By: Anthony Attanasio, Managing Director The holidays are almost upon us and the UTCA legislative team is working hard to ensure that the construction industry doesn’t receive coal in its stockings this year. There are many issues critical to our industry on the legislature’s agenda and we are fighting day in and day out to see that they make decisions that will benefit not only our industry but the NJ economy as a whole. We recently held our annual reception at the League of Municipalities Convention where more than a dozen legislators attended to learn first-hand from our industry leaders what our legislative priorities are.

The most important issue to our industry is of course the renewal of the nearly insolvent Transportation Trust Fund (TTF). As a founding member of Forward New Jersey (ForwardNJ), the coalition formed to educate our elected officials and the public about the dire need for a robust TTF renewal, UTCA has been a driving force behind the effort. As you are reading this article the UTCA has already met with more than 60 legislators including all four legislative leaders (Senators Sweeney and Kean, Speaker Prieto and Minority Leader Bramnick) and with NJDOT Commissioner Jamie Fox to advocate for $2 billion in new revenue which must then be Constitutionally dedicated to infrastructure investment. The UTCA has been the only industry advocacy group to testify at the Assembly Transportation Hearings on the subject and to participate in editorial board meetings with all of the region’s major newspapers.

The UTCA will continue to pound the drum and raise awareness about our crumbling infrastructure, ever increasing debt and dwindling funding sources until legislation is introduced that addresses our State’s dire transportation needs.

Recently, legislation that would permit certain government entities to enter into public private partnership agreements (P3s) with private entities to undertake certain building and transportation Utility and Transportation Contractor, DECEMBER 2014

infrastructure projects has been introduced in both houses of the Legislature. S2489 (Sweeney/Whelan/Oroho) and A3859 (Greenwald/Bramnick/Rible) seeks to allow P3s on projects as a new way for New Jersey to advance public works projects that have stalled due to a lack of available public funding. UTCA’s P3 Task Force met to discuss the legislation and to produce amendments that are necessary to protect the industry and the taxpayer. UTCA met with the Associated Construction Contractors of NJ to work on the amendments prior to legislative hearings on the measure. While we agree on most of the issues associated with this bill there is still more work to be done. The UTCA has gained the commitment from several of the bill’s sponsors that the bill will not advance without the industry’s concerns being addressed.

Legislation that would finally put an end to the unnecessary delays caused by utility relocation in transportation projects continues to gain steam. The New Jersey Department of Transportation met for a second and final time with the Utilities Association to work on compromises to the legislation. The Department now has language that it intends to advance with the support of the construction industry. NJDOT Commissioner Jamie Fox mentioned six separate times during his confirmation hearing the need to address this problem, which is costing the Department and its partners in the construction industry tens of millions of dollars annually. In addition, at the NJ SEED Economic Summit, when asked about the issue, Commissioner Fox reiterated the need to address the issue without further delay. The UTCA also went over the details of a solution with the Commissioner in a recent meeting with him and his senior staff. The UTCA is working with several members from both political parties in the Assembly and Senate who are preparing to introduce the amended language.

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Continued from Page 77 Senate bill 2412 (Sarlo/Kyrillos), which is referred to as the “Water Infrastructure Protection Act,” was recently released by the Senate Budget Committee. This legislation would authorize local governments and municipal, county, and regional utilities authorities to lease or sell their water or wastewater assets to a private entity, without any referendum, if an emergent condition exists. Current law allows the sale or lease of these facilities, however, a local referendum must be passed to allow the sale or lease of the public facility. The measure would provide local public entities greater flexibility to address an emergent condition impacting its water or wastewater services, if such a condition may be better addressed by a private operation on some or all of the public owner’s water or wastewater assets. The bill seeks to address the issue of failing public water/sewer utilities that are not contracting for the necessary maintenance and/or capital improvements of its systems. The concept of the bill is to ease the transfer of these assets to private entities who will then invest in capital improvements to the infrastructure that are currently not being performed. Public owner’s too often put budget priorities in areas far more visible to the public and are reluctant to spend money on infrastructure upgrades and repairs. This in turn has allowed many of their water/sewer utility assets to fall into disrepair. UTCA obtained amendments to the bill that requires the public entities to use the majority of sale/lease revenues, after mandatory debt defeasance, on some form of capital improvements within the public entities’ jurisdiction. Prior to UTCA’s amendment, this money could have been spent in ways that would not have benefited the taxpayer or the industry. UTCA

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was also successful in amending the measure to ensure that prevailing wage will apply to all work performed on the projects.

The Senate version is now on its second reading and the Assembly companion A3628 (Greenwald/Kean, S.) has been referred to the Assembly State and Local Government Committee.

The entire UTCA legislative team hopes you have a happy and healthy holiday season and a wonderful new year.

Continued from Page 93 violence to fundamental competitive bidding principles. Under such circumstances, the contracting unit has no assurance that the bid will be honored. The bidder, effectively, has the impermissible option, after inspecting the pricing of its competitors, to decline, with impunity, to cure its bid. No claim can be made against its bid bond because the condition of acceptance was never satisfied. Its competition, on the other hand, was unavoidably bound by their bids. The trial court’s decision was appealed on an emergent basis to the New Jersey Appellate Division, which temporarily stayed the ruling to forestall construction on the project. However, the Appellate Division lifted the stay after several days and the Supreme Court of New Jersey declined to hear any further emergent applications. Construction on the project continues and the case presently remains on appeal to the Appellate Division on a nonemergent basis.

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

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Legal Dig

ARE NEW JERSEY COURTS OPENING THE DOOR FOR THE CONDITIONAL ACCEPTANCE OF MATERIALLY DEFECTIVE BIDS? By: Paul T. Fader, Association Legal Counsel A New Jersey Trial Court recently issued an opinion that a general contractor’s listing of an electrical subcontractor without an electrical license at the time of the bid does not constitute a material defect provided that the license holder becomes an “officer, partner or employee” of the subcontractor prior to commencement of the work.

In Terminal Construction Corporation v. County of Bergen, the project at issue concerns the construction of a county building and parking garage. Pursuant to the Local Public Contracts Law (“LPCL”), the County’s bid package required each bidder to submit with its bid an “Identification of Subcontractors”. The statutory provision requires that the bidder – here Dobco – submit with its bid the name or names of all major trade subcontractors.

The project was awarded to Dobco as the low bidder. Dobco’s bid listed Abco as its electrical subcontractor. Both Dobco and Abco are owned by the same two individuals; however, the trial court held that this fact in itself did not violate any statute, regulation, or caselaw. Abco listed its required electrical license holder as Robert. E. Duva and submitted Duva’s electrical license certified by the Board of Examiners of Electrical Contractors.

The second low bidder challenged the award of the contract to Dobco because Duva was not, at the time of the bid, an “officer, partner or employee” of Abco as required by the Electrical Contractor’s Licensing Statute, N.J.S.A 45:5A-9 (“Licensing Statute”). Abco argued that Duva had an “association and relationship” with Abco, had “received compensation” from Abco in the past, and would be employed by Abco prior to performing the electrical work of the contract, thereby resolving the licensing issue.

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The trial court found that Duva’s associational relationship with Abco was not sufficient, and that the Licensing Statute does in fact require that Duva be an “officer, partner or employee of Abco…”.

However, in a quick twist, the trial court refused to “accept the proposition” that the LPCL required a contractor’s bid to be “invalidated because the license holder is not employed by the permittee prior to the commencement of the work.” On this matter of first impression in New Jersey, the trial court went on to state that “the county would be well within its bounds of discretion to accept such a bid with the proviso that Duva formalize his relationship with Abco.” However, the court did not indicate when that condition must be satisfied. Prior to the contract award? Prior to signing of the contract? After the work has started but before the electrical subcontract work begins? The trial court merely stated that, under the Licensing Statute, Abco may perform the electrical work provided that when Duva “undertakes that work he is an officer or employee of Abco…”

The trial court seemingly misread the Licensing Statute as contemplating that an electrical subcontractor’s permit could issue subject to its hiring the needed licensee. In this regard, the trial court cited the Licensing Statute’s reference to the requirement that the licensee “is or will be actively engaged” in overseeing the electrical work. Such prospective oversight ought not to be confused with the necessity that the licensee be employed by the permittee at time of issuance of the permit.

The notion that a contracting unit subject to the LPCL can make conditional acceptance of a bid, pending the subsequent cure of a defect in the license of the bidder’s listed trade subcontractor, does Continued on Page 89 93

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