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Utility and Transportation Contractor, OCTOBER 2014

President’s Message I want to thank the UTCA Board of Directors and Association Members for honoring me with this responsibility as we look forward to the challenges, changes and issues which will confront us in the final quarter of 2014 and through 2015. During this upcoming year we must not only be aware of new challenges facing our industry but also move forward looking to address those challenges and be vigilant in our approach to assuring public safety and confidence. I can assure you that I am committed to carrying out my duties as President as we continue to monitor and contribute to legislative changes for the betterment of our industry. I want to thank Harry Chowansky for his diligent and hard work this past year as our outgoing President. Harry proved himself to be an untiring advocate for our Utility and Transportation Contractors. Harry carried the baton, passed on from our past great presidents, and truly excelled and we thank him for that service. As we head into the final quarter of 2014 and the 15th year of this millennium there are still legislative and operational challenges to be met. As Association President, along with the help of the Board of Directors and the UTCA staff, we will continue to remain vigilant to monitor, recommend, and demand, if necessary, that our State and Federal legislators do what is necessary to fix the wrongs, inconsistencies and loopholes associated with maintaining and replacing the infrastructure of our communities, whether by County or State. Among our higher challenges is to find a long-term funding mechanism so that the state’s residents can rest at ease knowing that our infrastructure will be funded and repaired on a more timely basis without making it a reoccurring political football which gets passed from administration to administration. As business owners, we all have a master plan that we implement and follow to develop and grow a successful business. It appears that both the federal and state governments have forgotten this vital requirement in favor of never ending rhetoric and hollow promises. For way too many years their plan has been to “kick the can” onto the next incoming administration. We have been told that it will be resolved in Lame Duck for the past 20 years! Long gone is the sense of responsibility and leadership. Our infrastructure is the backbone of our country and state. Failure to provide adequate funding in a responsible manner will ultimately destroy our state, driving out not only businesses but also residents who seek relief from our overburdening taxes. For many of us, New Jersey has been our only home. We have seen it suffer from neglect and a casual willingness to impose taxes which serve to fund whimsical programs. We cannot continue to let this happen! In addition we need a fair and level playing field between the Owners and municipalities regarding contracts. This begins with 2

the specifications. We have been working on and intend to finalize and clean up the standard specifications for the D.O.T., as well as updating the 31-year old Construction of Wastewater Treatment Facilities Rules and the Local Public Contracts Law. We will continue to press on with our previous president, Joe Walsh’s initiative of standardizing the bidding documents for the Utility Contractors. I look forward to “rolling up my sleeves” and hopefully completing these and other tasks as they present themselves to keep us moving forward as an organization, as businessmen and as residents of this great state. On a personal level I would like to congratulate Fletch Creamer Jr. on his induction into the Construction Industry Hall of Fame. It is truly an honor to have both he and his father inducted into the Hall of Fame. I felt his sense of pride and accomplishment as he gave his acceptance speech. He is truly a great man and has done a lot to promote the success of the UTCA. I would like to also applaud Dave Smith on receiving the William Feather Memorial Award, and Cohen Seglias Pallas Greenhall & Furman on receiving the Larry Gardner Memorial Award. I am pleased to recognize French & Parrello for its 40 years in business. This is a significant milestone in today’s economy and it is a testament to their integrity and strength. In closing, I would also like to congratulate the UTCA staff, the Convention Committee, and the PAC Auction Committee. What a terrific job they did at this year’s convention! It was a great turn out with approximately 1200 attendees. It was nice see some fresh new faces at the booths, as well as our long time friends. We thank the Tropicana for doing a nice job in working with us to make the event a success. I personally enjoyed the new PAC Auction format as well as the other new activities and fresh ideas brought in this year. The photo booth, martini bar, Jersey beer bar and the new band at the dinner dance were nice touches which were enjoyed by all. We were fortunate to have the PAC Auction bring in $36,000 dollars. We thank you for your continued support. To address the challenges and tasks ahead I invite you to consider upgrading your PAC level commitment by one level this year. As you know it is more important than ever to support those in office that will help us achieve these necessary changes to promote a stronger and more unified construction industry and a safer and more effective New Jersey for its residents.

Best regards,

Scott Lattimer Utility and Transportation Contractor, OCTOBER 2014

OCTOBER 2014 Volume XXXIX, Number 5

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.

Editor: Michael DeVito Editorial Contributors: Michael DeVito Anthony Attanasio Dan Neville Helene Nasdeo

49th Anniversary Convention A Huge Success New Construction Theme Park “Diggerland USA” Opened In June 2014 Executive Disability Insurance: Women Need Paycheck Protection Too French & Parrello Celebrates 40 Years In Business Aqualete Industries Supplies Portable Sediment Tank On North Bergen Project eCommerce Boom Fuels Construction Of NJ Warehouse & Distribution Centers New Jersey Institute Of Technology Building For New Jersey & The Nation

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Advertising Manager: Helene Nasdeo Photographer: Michael DeVito

Departments

Cover Photo: Image Up

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

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

Printed By: American Plus Printers Affiliations: ARTBA Clean Water Construction Coalition Water Infrastructure Network UTILITY AND TRANSPORTATION CONTRACTOR (ISSN 0192-4843) is published six times a year by the Utility and Transportation Contractors Association of New Jersey, 1670 Highway 34 North, Farmingdale, NJ 07727. Periodical postage paid at Farmingdale, NJ and additional mailing offices. POSTMASTER: Send address changes to UTILITY AND TRANSPORTATION CONTRACTOR, PO Box 728, Allenwood, NJ 08720.

Cover UTCA President Scott Lattimer presents the 2014 William Feather Memorial Award to Dave Smith.

Utility and Transportation Contractor, OCTOBER 2014

Cover Story

49TH ANNIVERSARY CONVENTION WAS A HUGE SUCCESS

Creamer Environmental Completes West Bay Construction Twenty Years Years In Construction Completes Twenty In Construction Awards Presented To Dave Smith &A Cohen Seglias Pallas Greenhall & Furman Contractor Has Become Leader In Remediation Work Scott Lattimer Inducted As President & Fletch Creamer, Jr. In The Hall Of Fame Contractor Excels In Multiple Areas Of Construction

Professional South Jersey Firm Provides Quality Construction

TCA’s 49th Anniversary Convention, conducted last month at the Tropicana Casino & Resort in Atlantic City, attracted approximately 1200 people over the three day event. Those in attendance at the Friday Luncheon program heard sports agent JB Bernstein discuss his career and viewed clips from the Disney film “Million Dollar Arm” which depicts his story. The convention committee also unveiled several new events for this year’s convention. The annual convention opened on Thursday morning, September 18th, with a golf outing at Ballamor Golf Club in Egg Harbor Township. That evening convention attendees and exhibitors participated in a “Gourmet Food Reception”, sponsored by Foley, Incorporated, which attracted a large crowd where attendees enjoyed the variety of food and drinks. UTCA’s convention exhibit this year included displays of goods and services of approximately 97 firms and was available to

attendees during Friday and Saturday. The popular “Money Booth” in the exhibit area, sponsored by the Kennedy Companies, continued to generate excitement for viewers and those who were in the booth attempting to secure as many bills as possible in a 30 second time frame. Ransome Cat sponsored the coffee and pastries that were available in the exhibit hall on Friday morning.

Harry Chowansky, center, presents the Larry Gardner Memorial Award to George Pallas, left, and Shawn Farrell, from the firm Cohen Seglias Pallas Greenhall & Furman.

Keynote speaker JB Bernstein addresses the crowd at the Friday Luncheon Program. 4

The Friday Luncheon opened with a presentation of the 2014 Larry Gardner Memorial Award to Cohen Seglias Pallas Greenhall & Furman. The firm was selected for its many years of service on association committees as well as its support of the association through sponsorships, advertising and as seminar presenters. During the luncheon, JB Bernstein spoke to the crowd about his years as a sports agent and discussed his idea to search for baseball talent in India. Bernstein’s appearance was sponsored by PennJersey Machinery and Tilcon. Utility and Transportation Contractor, OCTOBER 2014

PAC Auction attendees bid on items during the Silent Auction on Friday evening.

C & H Agency sponsored the Friday President’s Reception at the convention, as they have done for many years. The event continues to serve as one of the highlights of the convention and draws a large crowd with a wide variety of food and drink. Following the President’s Reception, UTCA conducted its PAC Auction Party, which featured more than 90 items in the “silent” and “live” phases of the auction. Long-time UTCA staff member Michael DeVito once again served as the auctioneer for the event, and he was assisted by volunteers and members of the PAC Auction Committee which is chaired by George Helmer. The two United Airlines Business First Class tickets went for $3100 in the live auction. This year’s auction raised approximately $36,000 for UTCA’s political action committee. New program changes were incorporated into the Friday night Reception and Auction. Several lounge areas were set up in the Ballroom, many changes to the menu were unveiled including a Martini Bar and Jersey Beer Bar and popular South Jersey Entertainer Kenny i performed for the group.

Ed Zoranski of Norris Sales was the winner of our First Annual Poker Tournament.

On Saturday morning, UTCA conducted a 5K run and a 3K walk to benefit the Toys For Tots program. George Harms Construction sponsored this event. On an annual basis, the UTCA convention attendees have supported the “Toys For Tots” program in collaboration with the U.S. Marines. Numerous contributions of toys and money were provided by attendees to support the program. The breakfast program followed this new event and featured the presentation of the traditional manhole cover by Campbell Foundry to outgoing President Harry Chowansky in recognition of his year of service. The breakfast closed with the drawing of “his” and “her” watches and a Kindle Fire HD Wireless Reading Device by Bill Harrison of Construction Risk Partners which sponsored the drawing. Don Wittish of Berto Construction was the winner of the watches, while Gary Repke of Binder Machinery received the Kindle. Following the drawing, attendees returned to view the exhibits. The exhibits

Dr. Janet Crain speaks during the Spouses Program at Top Of The Trop.

The association wishes to thank those firms that contributed items to the auction, those individuals that purchased items and the companies that sponsored the PAC Auction Party. These sponsors included Atlantic Concrete Products, Cohen Seglias Pallas Greenhall & Furman PC, Earle Asphalt, High Steel Structures, JESCO, M.L. Ruberton Construction, Northeast Remsco Construction, Tilcon, IPR Northeast, South State and Vianini Pipe. Special congratulations to committee chairman George Helmer for his continued efforts in making this event a huge success! Utility and Transportation Contractor, OCTOBER 2014

Early-bird runners are pictured prior to the 3k walk/5k run Boardwalk Challenge. 5

Bob Briant, Jr., Nancy Damato and Brendan Binder pose during the presentation of the Sage Scholarship which honors Bob Briant, Sr.

closed with the grand prize drawing for a trip to St. Maarten which was sponsored by Hoffman Equipment. The winner of the grand prize was Judy Wuestefeld. Saturday afternoon allowed for attendees to enjoy two new programs. At the Top of The Trop, Janet Crain, an author, hypnocoach, international lecturer, cancer survivor and expert Tree Reader, gave a presentation. She has appeared on television, radio and is internationally known. Dr. Crain’s appearance was sponsored by Clyde N. Lattimer & Son Construction. Also on Saturday afternoon, the first Annual UTCA Poker Tournament was held. This event, which was sponsored by Montana Construction, generated a great deal of enthusiasm. The winner of the Poker Tournament was Ed Zoranski of Norris Sales.

Dave Smith, left, accepts the William Feather Memorial Award from Bob Briant, Jr.

The evening program concluded with the presentation of the 2014 William Feather Memorial Award to Dave Smith, who is the founder of Mount Construction. The award represents his achievements during his tenure as a UTCA Board Member and his continued support on association committees and as a national representative. The band “Cheers” provided music and entertainment this year for the Saturday Dinner program. Additionally, a new “fun feature” that was introduced to the group was the presence of two photo booths to allow for attendees to pose for various pictures. The UTCA staff was able to incorporate many new facets to this event, with special thanks to Helene Nasdeo and Lauren Hagan who handled the registration and other important duties in such an outstanding manner. Michael DeVito, COO for UTCA, managed the convention with assistance from Anthony Attanasio, Dennis Hart and Dan Neville. The Saturday Dinner, Reception and photo booths at the convention were sponsored by Binder Machinery, Komatsu America Corporation, Wirtgen America and Takeuchi. The experience at the Tropicana, food, drinks and service were top-notch with special thanks to Joe James, Director of Catering and Convention Services.

Construction Industry Hall of Fame inductee Fletch Creamer, Jr. address the crowd.

During the Saturday Dinner at the convention, Fletch Creamer, Jr. was inducted in the New Jersey Construction Industry Hall of Fame with his family and colleagues in attendance. Fletch served the industry in many capacities throughout his career and becomes the second father/son tandem to be inducted, joining Evaristo Cruz, Sr. and Ed Cruz. Fletch Creamer, Sr. was enshrined in 1997. At the dinner, Harry Chowansky was recognized for his year of service as association president, and Ron Tobia, UTCA’s Labor Counsel, inducted Scott Lattimer as UTCA’s new president. Following his induction, the new association president thanked everyone for their support and reviewed his agenda for the upcoming year. 6

Scott Lattimer, left, takes the oath as president from Ron Tobia.

Utility and Transportation Contractor, OCTOBER 2014

Legislative News

FEDERAL & STATE UPDATE By: Anthony Attanasio, Managing Director Fall is upon us and when it comes to funding and legislative initiatives the utility & transportation world is buzzing with activity. The UTCA remains at the center of all relevant debates and will continue to advocate for our industry in the halls of Trenton and Washington D.C. Since our last legislative update Governor Christie signed the Robert A. Briant Sr. Memorial Bridge legislation into law. The UTCA held a dedication ceremony on October 10th and the NJDOT will be installing official road signs to memorialize the bridge in Bob Sr.’s memory. An important UTCA legislative measure (A-1794/S-1048) that will protect a company’s private financial information and their ability to take part in the bidding process at the county and municipal level, was signed into law by Governor Chris Christie on September 10, 2014. The new law is P.L. 2014, Chapter 52 which will take effect immediately and shall be applicable to proposals for bids advertised on or after the first day of the next month following the date of enactment, which was October 1, 2014. The association thanks our bill sponsors Assemblyman Jason O’Donnell (D), Assemblyman Rob Clifton (R), Senator Chris Bateman (R), Senator Jeff Van Drew (D) and Senator Steve Oroho (R). Unfortunately we do not have all good news to report. Legislation created by the UTCA to establish a state transportation infrastructure bank, a measure that was pocket vetoed by Governor Christie in January, was revisited and amended to address the administration’s concerns. The revised bill passed the State Assembly and Senate with overwhelming support from members on both sides of the aisle. The new version of the bill incorporated extensive amendments that were requested by the NJ Department of Transportation. Unfortunately the new version of the bill has now been absolutely vetoed by the Governor. A-3177 (Wisniewski/ 16

Gordon) would have helped local communities begin to address a backlog of crumbling roads and failing bridges by creating a new funding source based on the already successful model of the New Jersey Environmental Infrastructure Trust. New Jersey would have been statutorily prepared to receive federal funding earmarked for state infrastructure banks. No new authorities would have been created, and the expertise of existing programs could have been utilized for a relatively turn-key operation. The association does not plan to sit idle and will seek to address the administration’s concerns even though we do not feel they are accurate. We will not give up until the Governor signs the Infrastructure Bank into law and provides a much needed new vehicle for local governments to fund infrastructure repairs. UTCA would like to extend its sincere thanks and appreciation to the officials from the Department of Transportation that spent many hours developing the amendments, as well as the bill sponsors and legislative staff that continued to work tirelessly to get this measure back to the Governor. This fall the UTCA will be working to advance legislation that benefits our industry on both the utility and transportation fronts while also working to prevent harmful legislative initiatives from advancing. The UTCA will continue to advance solutions to the utility relocation and traffic control issues. We are also working to amend or, in some cases, stop legislation that deals with the privatization of certain public water utilities, placing restrictions on contractors when blasting and a contractor licensing bill. We will have a more in depth update on these measures in our December issue. The process for renewing the soon to be insolvent NJ Transportation Trust Fund (TTF) has begun and the UTCA is providing much needed leadership, guidance and muscle to the movement. ForwardNJ, a coalition of business, labor and Utility and Transportation Contractor, OCTOBER 2014

construction industry members has been formed to educate the public on the need for a long term, robust and sustainable transportation funding source. The group held a kick off press conference on September 16th in the New Jersey State House. The group is being chaired by NJ Chamber of Commerce President and CEO, Tom Bracken, and had more than 25 coalition members present for the kick-off event. The UTCA will not rest until this issue is addressed by Governor Christie in a manner that truly solves the crisis. We will not stand by and allow another administration to come and go without addressing this critical issue to New Jersey’s economy. The Coalition was quite pleased at the Governor’s appointment of Jamie Fox as Commissioner of the NJDOT. Commissioner Fox has a long and proud tradition of supporting the transportation and infrastructure communities and we see this as a step in the right direction for solving the TTF crisis. Senate President Steve Sweeney has led a statewide tour highlighting the need for transportation investment. Assembly Speaker Vincent Prieto and Transportation Chairman John Wisniewski will be holding legislative hearings to continue the drum beat on the issue. The first special Assembly Transportation and Independent Authorities Committee hearing on the subject was held on September 24 at Montclair State University. UTCA Managing Director and former NJDOT Assistant Commissioner Anthony Attanasio testified before the committee. The second hearing has been scheduled for Tuesday, October 14th at Rutgers University. The UTCA will be present at all hearings to continue to push this issue over the goal line by any and all means necessary. While NJ inches towards a permanent solution to its transportation funding issues, unfortunately, Washington D.C. does not seem to be using the same playbook. Over the summer Congress once again punted on solving the issue in a long term fashion and passed another short term “patch” that extends the federal highway trust fund’s authorization to May of 2015. The UTCA and our partners from around the country will continue to advocate for a long term solution. Since our last publication the UTCA has met with Congressman Leonard Lance (NJ-7) and Congressman Donald Payne, Jr. (NJ-10) to continue to press the issue with our Congressional delegation. We are proud to represent our industry in advancing its legislative goals and will report back to you in December with updates on all of these issues and more.

Continued from Page 39 You should also, of course, reconcile your accounts frequently, ensure that you keep your checks secure, limit the number of employees authorized to sign checks and separate payables and receivables responsibilities. Finally, consider implementing fraud prevention services with a financial institution like Provident Bank. Services such as online banking, positive pay and remote deposit capture can drastically reduce your chances of becoming a victim of fraud. The very nature of your business makes you a target, but we’ll help shrink the size of your bull’s eye. To learn more about check fraud prevention services, 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.

Continued from Page 31 number, names sounding like, or spelled like known vendors. We can also match vendor and employee names, addresses, and phone numbers company addresses and phone numbers. In analyzing salaries and payroll, we can compare and summarize costs for special pay and overtime. We are able to compare timecard rates and pay to payroll and indicate variances and extract payroll checks where the gross dollar amount exceeds set amount. The program also helps us identify changes made to exemptions, gross pay, hourly rates and salary amounts. We can also identify payments to terminated or non-existent employees and verify commission calculations and find multiple payroll deposits to the same bank account. At Curchin, we have been utilizing data extraction software since the late nineties, observing the evolution of this technology as it has become the highly flexible software application that it is today. Utility and Transportation Contractor, OCTOBER 2014

Utility and Transportation Contractor, OCTOBER 2014

NEW CONSTRUCTION THEME PARK “DIGGERLAND USA” OPENED JUNE 2014

hether its 2014 or 1914, all kids wish they could run real construction equipment. Well, now they can! When Diggerland USA opened in Berlin, NJ in June of this year, it was the first construction-themed park in the United States. Diggerland encompasses 14 acres where children and their families can drive, ride and operate real construction equipment. There are more than 23 attractions including the Backhoe Adventure, Mini-Land Rovers, skid-steers, dumper trucks

and diggers of various sizes. Most of the attractions do have a minimum height requirement, but there is something to be found for all ages including an expansive, state- of- the- art arcade. The Kid Zone is a playground area, with no height restrictions, where parents can take a break while the kids play nearby. A rock wall and ropes course are also part of the fun, as well as concessions and a gift shop. Plans for Diggerland were unveiled at a Press Conference in January of 2014, and the entire project was completed in just over six months. The Grand Opening was held on June 14, 2014. Sambe Construction was the managing organization for the project. Sahara Sam’s Oasis—an indoor/outdoor water park located next to Diggerland—was also built by Sambe. Ilya Girlya is the owner and CEO of both Diggerland and Sahara

The Backhoe Adventure Sam Girlya 20

Utility and Transportation Contractor, OCTOBER 2014

Samâ€™s. The Girlya family also owns Sambe Construction. Combo tickets are available to experience both parks. The equipment used at Diggerland is manufactured by JCB. It has been re-engineered, and the majority of it came from the United Kingdom with some of the units coming from the JCB plant in Savannah, Georgia. The first Diggerland Adventure Park opened in April of 2000 in Kent, United Kingdom. Currently, there are four similar parks operating in the UK. Equipment Stunt Shows are held daily and feature heavy equipment acrobatics. The park plans to operate 10 months out of the yearâ€”from March to December. Hours are 10 AM to 6 PM. Season passes are available as well as several discount admission options including such for seniors, military/ first responders, AAA and good grades. Diggerland also has the capacity to host birthday parties and group events. Check out their website at www.diggerlandusa.com for more information and to plan your visit.

Utility and Transportation Contractor, OCTOBER 2014

Diggerland Dumper Course

Utility and Transportation Contractor, OCTOBER 2014

Accounting Corner

DATA EXTRACTION By: Roy H. Kvalo, The Churchin Group LLC When providing accounting services for a variety of clients utilizing a wide array of accounting application platforms there are many challenges. One challenge is how to efficiently transfer data from a client’s general ledger software to the analytical software commonly used by CPA’s. As recently as fifteen or twenty years ago this process of transcribing client data to the accountants work papers was performed with pencil and paper. To a certain extent, this manual process continues for many accountants and their clients today. In some instances the only difference is that the pencil and paper has been exchanged for a computerized spread sheet; the actual transfer of data is still performed manually. A better approach is to utilize data extraction software or general audit software such as ACL or IDEA to facilitate this process. While we find this very useful in traditional service areas such as audits, it has increasingly become important in non-traditional service areas such as agreed upon procedures, consulting arrangements and my favorite, forensic and fraud accounting. While the automation of data transfer alone will certainly result in significant time savings, the real savings occur in the analytics. In addition to time savings, data extraction also affords us the ability to dig deeper into the accounting records and utilize detail that might otherwise escape manual analytical procedures. In the analytical process, our general audit software helps us to search for inconsistencies in transactions by performing digital analysis based upon Benford’s Law. Benford recognized that in lists of naturally occurring numbers from real-life sources of data, the leading digit appears to be distributed in a specific, non-uniform way. Examples of naturally occurring numbers would include sales amounts, check amounts and stock prices to name but a few. For Utility and Transportation Contractor, OCTOBER 2014

example, Benford realized that for almost any naturally-occurring data set, the number 1 would appear first about 30% of the time. Non-naturally occurring data including pre-assigned numbers such as postal codes or UPC numbers would not follow Benford’s Law. There are countless ways to analyze the data related to our contractor engagements using the general audit software. Here are just a few examples. For analyzing accounts payable we can correlate vouchers or invoices posted with the corresponding purchase order amounts, identify potential duplicate payments and extract invoices posted with duplicate purchase order numbers. For accounts receivable, we can show variances between delivery documents and invoices, identify duplicate invoices, credits, or receipts in any order. For cash, we can identify suspicious disbursements including large even-dollar amounts and disbursements that are paid offcycle. For a sales analysis, we are able to extract sales data by any classification such as customer name, product type and sales region. In the General Ledger, we can identify potential duplicate postings and analyze suspicious postings that are split among a large number of general ledger accounts. We can also identify odd posting dates and time debit postings to credit accounts or vice-versa. “Fuzzy Matching”, or distance matching, as it is sometimes referred is a process that determines the number of key strokes that would be needed to turn one description into another. This is an effective analytical tool that provides us with the ability to compare data such as customer addresses to employee addresses. The following is an example of how we use fuzzy matching for vendor management by identifying vendors with more than one vendor number, multiple post office box addresses, omitted phone Continued on Page 17 31

Utility and Transportation Contractor, OCTOBER 2014

Financial Overview

CHECK FRAUD CHICANERY IN CONSTRUCTION: A LINEUP OF THIEVES By: William J. Ruckert, Provident Bank Although total check volume may be decreasing, check fraud is on a rapid rise. It may sound counterintuitive, but it’s true. And unfortunately, your high check volume business puts you at particular risk. According to the 2014 Report to the Nations on Occupational Fraud and Abuse, only 3.4% of total fraud cases reported occurred in the construction industry. Hey, that’s not too bad, right? Well, not necessarily. 3.4 may seem like a small percentage, but the median loss per incident was $300,000, the third highest amount of all industries. Moreover, check tampering and payroll accounted for 40% of the fraud schemes committed. Your company may as well be a bull’s eye. So, how do you protect yourself? You have to know who you’re looking for. Unfortunately, fraud thieves do not fit the typical stereotype or adhere to certain age, gender, race, or socioeconomic markers. They often do not possess a criminal background or objectionable employment history. Mostly, they’re not even strangers, but your own employees or vendors. If mitigating check fraud is sounding like an impossible task, take heart. All thieves have three things in common: incentive, opportunity and rationalization. Better yet, they have standard M.O.s. It is possible to profile the crookedest-crooks, those underhanded scallywags with the cleverest tricks up their sleeves. They’ve got stripes around their shoulders and chains around their feet. Here’s the lineup of unsavory thieves: The Lineup The Tailor: The Tailor makes alterations to checks like a needle to fabric. He is adept at forging signatures and changing information Utility and Transportation Contractor, OCTOBER 2014

in the payee name and amount fields with a tool as simple as a pen or as complex as bleach. If only specific areas are erased with chemicals, it’s called spot-alteration. If the entire check is erased, it’s called check washing. He may even craft counterfeit checks whole-cloth. The Ghost: The ghost moves through your company, undetected, as a payroll administrator. He often sets up a fake (ghost) employee or reactivates a terminated employee in the system, receives the checks and cashes them for personal use. Or, he continues to issue paychecks to an employee who quit but changes the direct deposit routing number to an account that he controls. The Non-Accomplice: He may sound non-threatening, but The Non-Accomplice is a no-good employee who changes the address of a vendor to a P.O. Box to which he has access. He may also alter or reissue a vendor’s invoice for a higher amount, eventually pay off the vendor via other means and keep the difference. The Sheller: This fraudster creates a shell company that’s nothing more than a pretty façade, from which your company “purchases” nonexistent products or services. The Sheller submits fake invoices from the shell company and collects the check. Setting a Burglar Alarm Now that you know who you’re looking for, you can better stop these tricksters in their tracks. All you need to do is set a burglar alarm—one of awareness and constant vigilance. First and foremost, you should establish and enforce a zero-tolerance fraud policy. Require your employees and vendors to agree to a code of ethics and to participate in education/awareness training about the devastating consequences of fraud. Next, set up strong internal audit controls. An ethical culture must start from the top down. Continued on Page 17 39

WITHUMSMITH+BROWN CELEBRATES 40 YEARS IN BUSINESS

Utility and Transportation Contractor, OCTOBER 2014

EXECUTIVE DISABILITY INSURANCE: Women Need Paycheck Protection Too

By: Nancy Damato, Partner, RDA Benefit Services As successful owners of companies and high-level executives, women contribute a significant amount of income to the family budget—and may even be the sole breadwinner. Did you know that according to Pew Research, women are the main or only breadwinner in 40 percent of households with children under age 18? With their day to day focus on growing their businesses, women tend to overlook the most important concern of all— protecting their paycheck. Benefits from employer-provided policies only cover a portion of income and can leave quite a large income gap. These benefits are generally taxable and are typically far from adequate to meet anyone’s needs. And if earnings include commissions or bonuses, the gap could be even greater. Keep in mind, too, that the average monthly benefit paid by Social Security Disability Insurance is only $1,004 per month. (Source: Social Security Administration, 2008) WHAT ARE THE CHANCES THAT YOU COULD BECOME DISABLED? Statistics show that women are more likely than men to experience a disability. According to the Council of Disability Awareness (CDA), 54% of new disability claims approved during 2012 were for women. Illnesses like cancer, heart attack or diabetes cause the majority of long-term disabilities.

Utility and Transportation Contractor, OCTOBER 2014

Back pain, injuries and arthritis are also significant causes. And since most disabilities are not work-related, they are not covered by worker’s compensation. INDIVIDUAL DISABILITY INSURANCE OFFERS A VALUABLE SOLUTION. Individual Executive Disability Insurance, being offered to UTCANJ association members by Standard Insurance Co., offers comprehensive disability benefits that use the “own occupation” definition of disability. Policies using this definition of disability are the finest you can get. These policies also offer many additional benefits, including a partial disability benefit, recovery benefit, rehabilitation benefit, compassionate disability benefit, future purchase option rider and indexed cost of living rider. Association members can receive up to a 25% discount off the individual rates for these plans—for both individual protection, as well as business overhead expense protection. This valuable benefit with the association discounts is available exclusively through RDA Benefit Services LLC. For additional information about these plans and a complimentary, no-obligation quote, please contact Nancy Damato at 855-693-0772 or 609-693-0772.

Utility and Transportation Contractor, OCTOBER 2014

Featured Article

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

hough initially known and respected in the construction industry for their geotechnical expertise and related field and laboratory services, French & Parrello Associates, PA (FPA) has not rested on its laurels since their inception in 1974. Today, as they celebrate their 40th anniversary, FPA has grown into a 130 person multi-discipline engineering firm practicing in both the public and private sectors.

Pictured left to right are the firm’s founders James B. Heller, PE, Laurence E. French, PE, Argo T. Parrello, PE and Joseph M. Edwards, PE.

The roots of FPA go back to the early 1970’s, when Laurence E. French, PE was expanding the southern New Jersey client base of Raamot Associates PC, a Manhattan-based geotechnical engineering group. As an Associate of the firm, Larry launched a New Jersey branch office in Brielle in 1972 to better serve the company’s growing list of projects in the Garden State. Argo T. 48

Parrello, PE, who had known Larry since college, joined the Brielle office in 1973. Shortly thereafter they were joined by Joseph M. Edwards, PE and James B. Heller, PE. Their Brielle office quickly gained a reputation for providing clients with solid expertise in geotechnical engineering and related field and laboratory services. The office’s high quality engineering skills and cost effective designs complemented by its ability to provide field and laboratory services during construction helped them stand out in the marketplace. In March of 1974, the seeds of what would eventually become FPA were sown with the formation of Raamot Associates PA, a New Jersey based branch office of their New York City parent firm. Their early services lines were confined to geotechnical engineering and related construction phase services. Notable projects during the first decade included oceanfront high rise structures in Monmouth Beach, major water and sewerage systems in Monmouth and Ocean Counties, ocean outfalls, subaqueous pipe crossings and sewage treatment facilities in Wall, Neptune, and Hamilton Township. In 1980 their operation began to broaden its services by offering environmental engineering. Three years later in 1983, Larry, Argo, Jim, and Joe, “the Founders”, decided to separate the group’s ties to Raamot Associates PC. In 1983, Raamot Associates PA was purchased by “the Founders” and the name was changed to French & Parrello Associates, PA. By the mid-1980’s, FPA had entered the emerging wireless telecommunications market, a decision that would be impetus for future growth and their transition to a multi-discipline engineering firm. Throughout this decade, the firm focused on organic growth through the providing of additional service lines such as site, electrical, mechanical, and structural engineering and surveying to primarily serve the telecommunications market. Notable projects during this time included the early buildout of wireless teleUtility and Transportation Contractor, OCTOBER 2014

· ·

Aerial view of the University Medical Center of Princeton.

Sands Casino in Bethlehem, PA Turtle Back Zoo & The South Mountain Recreation Complex in Essex County · Mountain Lakes Dam in Princeton · University Medical Center Of Princeton At Plainsboro · South Orange Avenue Improvement in Essex County · Monmouth County Bridge S-17 Over The Swimming River · McGraw Hill Solar Project in East Windsor · Middlesex County Landfill Phase II Expansion Cells 7, 8, &9 · Multi-Family Housing At Nolan’s Ridge In Mount Arlington, NJ The success of the firm and its culture, steeped in professionalism, technical excellence, and top-notch service, can be attributed to the talents of “the Founders”: Laurence E. French, PE; Argo T. Parrello, PE; James B. Heller, PE; and Joseph M. Edwards, PE.

communication networks for some of the industry’s major carriers. Today, the telecommunications market remains a strong suit. Coinciding with an October 1990 move to a new location in Holmdel, New Jersey, the firm formally committed to being recognized as a multi-discipline firm. Through the asset purchase of Blackburn Engineering Associates, a structural engineering firm, FPA officially entered the building design field. Combined with their mechanical, electrical, plumbing, site, geotechnical, and environmental capabilities along with survey, landscape architecture, and related construction phase services, they could now offer a client full engineering services from concept, through permitting, design, and construction. In 1994, they opened a branch office in Hackettstown, New Jersey, and also began to offer highway and bridge engineering services. Mountain Lakes Dam project in Princeton.

Sands Casino in Bethlehem, PA.

From the early 90’s to current day, the firm has set its focus on applying their multi-discipline skills to such diverse assignments as schools, hospitals, dams, landfills, parks, highways, bridges, power plants, solar installations, commercial facilities, and residential and apartment projects. In 2002 they opened a branch office in Bethlehem, Pennsylvania to position themselves for the redevelopment of the Bethlehem Steel Plant. Then in October 2005, they came full circle when they returned to their geographical roots by relocating their main office to their present location in Wall, New Jersey. During its long history, the company has been recognized with many awards for its efforts. A sample of such noteworthy projects follows: Utility and Transportation Contractor, OCTOBER 2014

The recently retired Laurence French holds the title of Chairman Emeritus for the company. With both undergraduate and graduate degrees from Newark College of Engineering, Mr. French has 45 years of experience in soil mechanics and foundation engineering and was the first geotechnical engineer from the Unites States to travel to China and provide geotechnical consultation and foundation design for a facility in the port city of Tientsin. He also served as a professor at Newark College of Engineering during a five year stint from 1966-1971. Since his retirement he has continued to assist the firm in business development. Argo Parrello serves as President and Chairman of the Board for the group. Parrello achieved an undergraduate degree from Newark College of Engineering which was followed by a master’s degree from the University of Illinois. He served in the United States Naval Civil Engineering Corps as Assistant Resident Officer in charge of projects in Thailand and the United States. These projects included work on airfield improvements, bridge construction and power plant facilities. Today, the company proudly holds the designation as a Veteran Owned Business. During his career, Argo has been involved with projects at liquid natural gas facilities, waterfront structures, landfills and water and sewer treatment plants. Parrello also led the firm’s entry into the wireless communications market. In fact, the company was one of the first to delve into this market sector in New Jersey. James Heller, Chief Executive Officer and Executive Vice President, holds a bachelor’s degree in civil engineering from Newark College 49

from the New Jersey Institute of Technology. Heller served a two year tour of duty with the 17th Combat Engineering Battalion of the 2nd Armored Division. His career has taken him to such places as Venezuela, Saudi Arabia and Algeria. Heller has served as a geotechnical advisor on projects employing ground improvement techniques such as surcharging, grouting and deep dynamic compaction. He has also performed design duties for cantilevered concrete retaining walls, soldier beam and lagging and mechanically stabilized walls as well as bulkheads. Joseph Edwards serves as the company’s Executive Vice President, Secretary and Quality Control Officer and, like the other three founders, also holds a degree in civil engineering from the Newark College of Engineering with an emphasis on geotechnical and construction engineering. Edwards served in the US Army for two years as a Military Policeman assigned to the 558th Military Police Company, serving as a security specialist with a Top Secret clearance. He has also provided engineering services overseas in Nigeria, Africa. His skills were utilized on commercial, industrial and institutional building projects, composting facilities, water and sewer treatment plants, utility installations, power plants and landfills. Mr. Edwards leads the firm’s solid waste engineering group through both design and construction related aspects of work. He also served as resident engineer on a bulkhead restoration project in New Jersey that was designated as the “Project of the Year” by the New Jersey League of Municipalities. This project included pile driving activities, heavy timber construction, reinforced concrete construction and underwater construction. Today, “the Founders” are in the process of transitioning FPA to the group of talented new leaders and shareholders. “Our primary role, for the next decade, is to transition the firm to our new leaders,

South Orange Avenue bridge structure in Essex County.

as the future is in their hands. We are providing them with a strong foundation to build their future on. They take with them our legacy and ‘can do’ culture” says Argo Parrello, Chairman/ President of the firm. It is no surprise that this diverse and professional organization has been in business for 40 years. In fact the company’s mission statement clearly expresses the view of its founders: “Our mission is to add value by providing quality engineering and environmental consulting services to meet our clients’ needs through technical excellence, dedication and professionalism.”

Monmouth County Bridge S-17 over the Swimming River. 50

Utility and Transportation Contractor, OCTOBER 2014

Legal Dig

NEW JERSEY SUPREME COURT TO CONSIDER ENFORCEMENT OF:

CONTRACTOR MUNICIPAL MECHANICS’ LIEN RIGHTS By: Steven Brawer, Association Legal Counsel A decision with broad implications for the entire contracting industry was rendered by the Superior Court of New Jersey, Appellate Division on April 24, 2014 and is now headed to the Supreme Court of New Jersey for review. In Morris County Improvement Authority v. Power Partners Mastec, LLC the Appellate Court affirmed a trial court decision that denied Mastec the protections typically available to subcontractors under the Municipal Mechanics’ Lien Law, N.J.S.A. 2A:44-125, et seq. (MMLL). There, Mastec acted as a sub which performed engineering, procurement and construction work for SunLight General Solar, the developer of 70 solar generating systems on various properties in Morris, Somerset and Sussex Counties owned or occupied by governmental entities in those counties. Although Mastec asserted claims directly against SunLight for the balance it claimed for its work and recently obtained an arbitration award of nearly $60 million against the developer relating to cost overruns and construction delays, in order to protect its position Mastec also filed municipal mechanics’ liens on $50 million in project financing funds that the Morris and Somerset County Improvement Authorities received from the sale of government-secured, taxable municipal bonds. Those funds were intended to cover the cost of the solar energy program and have been held in trust for that purpose. In affirming a trial court ruling which discharged any restriction on the disbursement of trust funds created by Mastec’s notice under the MMLL, the Appellate Division held that for purposes of the MMLL Mastec acted as SunLight’s “subcontractor,” which status generally will create lien rights under the MMLL for the value of the sub’s labor and materials “upon the moneys due or to grow due under the contract and in the control of the public agency.” However, the Court went on to hold that because the County Improvement Authorities Law, N.J.S.A. 40:37A-44, et seq., specifically exempts the property of a county improvement authority from “judicial process” the liens filed by Mastec were unenforceable Utility and Transportation Contractor, OCTOBER 2014

as a matter of law. Simply put, the Improvement Authorities argued, and the Court agreed, that in order for Mastec to enforce its liens it would have to seek a levy directing the sale of property owned by the Morris and Somerset County Improvement Authorities. Since the controlling statute prohibits levies upon such property, the Appellate Division ruled that no liens could be filed by subcontractors against monies in the control of the Improvement Authorities notwithstanding the lien rights arising under the MMLL. Under the Court’s reasoning, subcontractors may not be entitled to file liens against project funds held by any municipality, effectively eviscerating the MMLL. With all due respect to the Appellate Division, the rationale underlying its decision is flawed. Municipal mechanics’ liens are not imposed upon public property but are filed against funds held by governmental entities. The lien holder does not have to levy upon any personal property or real property owned by the municipality, county or improvement authority; rather, to enforce a valid municipal mechanics’ lien a subcontractor may seek a court order directing the public owner to make payment out of project funds which it is holding. This is the routine process that may be used in the same fashion as an action to enforce any other judgment that a party recovers against a governmental unit. In this regard there is nothing unique about the County Improvement Authorities Law that should lead to any different treatment under that statute with respect to enforcement of municipal mechanics’ lien claims. On July 28, 2014 the Supreme Court of New Jersey agreed to consider the Mastec case and determine whether, under the circumstances presented, the subcontractor’s municipal mechanics’ liens were barred by the County Improvement Authorities Law. The fact that the Supreme Court granted Mastec’s petition for certification is encouraging and hopefully will lead to a definitive ruling on this important point which will reverse the Appellate Division’s decision and restore Mastec’s municipal mechanics’ lien rights. 53

Utility and Transportation Contractor, OCTOBER 2014

AQUALETE INDUSTRIES SUPPLIES PORTABLE SEDIMENT TANK ON NORTH BERGEN PROJECT Innovative Treatment System Is Approved By NJDEP In the past year, a new and innovative solution to remove hydrocarbons and pollutants from water was introduced to the New Jersey construction industry. Aqualete Industries, located in Ocean, NJ, is the manufacturer of the system, which is known as the WTS 2000 Portable Sediment Tank. The unit is marketed under the companyâ€™s subsidiary Starr Water Treatment Systems.

in conjunction with pumps provided by Pumping Services of Middlesex, NJ, were able to process approximately 2.1 million gallons of water per day. The systems operated around the clock for six consecutive weeks and a total of 80 million gallons of water was treated by the four units. Following treatment, the water was discharged into the Hudson River, which is adjacent to the medical facility. Besides dewatering, this product is also approved for sediment control, MTD cleanout & maintenance, oil/water separation, trench discharge, decanting waters from storage tanks, marina and boat basin maintenance and much more! It is very easy to use and requires no special training or certifications to operate. These units allow for contractors to keep their projects on schedule with no downtime during dewatering. The unit is constructed from marine grade stainless steel, has no moving parts and can be used in both fresh water and salt water conditions. It is capable of handling high volumes of water and does not use replaceable filters.

Hoses are connected to the two well points that were installed for our WTS2000 units.

The WTS system is the size of a landscape trailer and is towed by a pickup truck to construction sites. Once it is setup, water is conveyed into the system with the use of standard construction pumps. The fluid then goes through a four phase treatment process to remove total suspended solids (TSS), hydrocarbons such as oil and grease, sediments including sand, silt, dirt, clay, gravel and other highly organic soils, and also phosphorous, nitrogen and other pollutants. The water is then discharged through an effluent valve. On a recent project in North Bergen, Phil Neto Construction was performing site work for the expansion of the Palisades Medical Center. The contractor encountered a great deal of groundwater while digging footings and foundations on this project. Aqualete transported four units to the jobsite for use during the dewatering process and to lower the water table. The WTS2000 units, working

Four WTS2000 units treated over 2.16 million gallons a day, running 24/7 to keep the site dry.

Utility and Transportation Contractor, OCTOBER 2014

Two well points lowered the water table and sent water to the units.

Aqualete Industries is a four year old company and has recently expanded the number of these units available for sale, long term lease and rent. This growing company has provided services in 15 states in the eastern and mid-western parts of the United States. The WTS2000 is approved by the Environmental Protection Agency, the New Jersey Department of Environmental Protection, the NJ State Soil Conservation Committee and the Department of Agriculture. An important fact is that this product has third-party verified test results from Rutgers School of Engineering, Department of Civil and Environmental Engineering for its pollutant reduction rates. The firm is led by William Hannemann, Chief Executive Officer, William Roberts, Chairman of the Board and Albert Cohen, President. This product can be a valuable tool for firms in the construction industry. For more information, please contact Aqualete Industries at 732-695-6336 or www.aqualeteindustries.com

Utility and Transportation Contractor, OCTOBER 2014

eCOMMERCE BOOM FUELS CONSTRUCTION OF NJ WAREHOUSE & DISTRIBUTION CENTERS By: Chris Colabella, Construction Information Systems New Jerseyeans are used to hearing people repeat the old Joe Piscopo bit, “You from Joisey? I’m from Joisey! What exit?” We laugh at it, not necessarily because it’s funny, but because we understand the truth behind its meaning. In New Jersey, one of the best ways to explain where you live or work is by tying your location to the New Jersey Turnpike or Garden State Parkway. Both highways are connectors from anywhere to everywhere. With 12 warehouses and distribution centers currently under construction in close proximity to NJ’s major highways, developers are betting that the Garden State will be the next go-to hotspot for companies that need huge warehouse space to keep up with online marketplace demands. In prior construction booms, developers dug in quickly and started to build in New Jersey. However, most were burned when they attempted to take the “build it and they will come” philosophy in NJ leading up to 2009. That’s when the economy tanked, leaving countless square feet of NJ industrial space unleased or abandoned. So, even as forecasters predicted the construction industry would be seeing some increased activity in the past year, NJ developers were a bit more cautious. Then, the Christie Administration announced major economic initiatives to bring companies, and jobs, to New Jersey. Now, with tax credits and other valuable incentives in hand, developers are building warehouses to suit all around New Jersey. Several projects are complete and occupied. Notably, the one million square foot Amazon Distribution Facility @ Matrix Business Park in Robbinsville, nestled on a quiet back road close to Exit 7A of the NJ Turnpike, was built in 15 months. Contractor Clayco Inc. of St. Louis started construction on the massive Amazon project in the spring of 2013. This July, Amazon shipped its first products from Robbinsville. Amazon received tax incentives from the local township to locate there, promising to create more than 700 jobs. Amazon chose New Jersey, prompting property owner KTR Partners of New York to build the eCommerce giant a warehouse/ distribution facility. On the other hand, Prologis went out on a limb Utility and Transportation Contractor, OCTOBER 2014

to start building in NJ, of sorts. With East Rutherford’s R.C. Andersen leading construction, Prologis began building the Pulaski Distribution Center over a year ago. At the time, the project was “for lease, to be built.” But it didn’t take long to find quality tenants. After receiving a $34.6 million Urban Transit Hub grant to open a warehouse in New Jersey, online grocer Peapod snapped up 345,000 square feet of the center’s then-planned 880,000 square feet of space. Imperial Bag & Paper Co., another eCommerce retailer, signed on for the other half of the center after Imperial was awarded almost $30 million from the New Jersey Economic Development Authority under the Grow New Jersey tax credit initiative to locate its warehouse and distribution facilities here. Still, other developers are working on true speculation. Many, including Goodman Birtcher North America of Allentown, PA., are betting on the Field of Dreams mentality. However, Goodman Bircher thinks it’s a sure bet. The developer is building five warehouses on 143 acres of the former GAF site on 4000 Linden Road in Linden. Goodman Birtcher points to New Jersey’s renewed efforts to lure companies here with major economic incentives as well as exciting infrastructure projects already underway – the raising of the Bayonne Bridge, for example – as reasons why companies will be looking for warehouse space here. Of course, proximity to Port Elizabeth and both New York and Philadelphia sweeten the deal for would-be tenants. So, while New Jersey sat on the sidelines for a while, it’s clearly back in the game now. After watching commercial hubs around the country (think California, Chicago, Dallas and Atlanta, to name a few) attract speculative industrial development projects for two years, warehouse and other industrial projects are once again in full swing in New Jersey. About The Author: Chris Colabella is the president of CIS, Inc., New Jersey’s only local construction lead service. For more information, visit www.cisleads.com or call 800-247-1727 to arrange for a free demo of CIS leads. 69

Utility and Transportation Contractor, OCTOBER 2014

Labor Relations

ARE PRIVATE EMPLOYERS PERMITTED TO RANDOM DRUG TEST THEIR EMPLOYEES? By: Michael A. DeMarco, Esq., Tobia & Sorger Generally, New Jersey prohibits private companies from performing random drug testing of their current employees. The exception involves employees in “safety-sensitive” positions within that private company. New Jersey courts have held that a “safety-sensitive” position is one in which “the employee’s duties are so troubled with hazard that his or her attempts to execute them while in a state of drug impairment would pose a threat to coworkers, to the workplace or to the public at large.” Although the definition of a “safety-sensitive” position is not discussed further, it is apparent that there must be a direct and immediate connection between the employee’s duties within his or her job and a substantial safety risk to his or her co-workers, the workplace or the public at large. For example, where employees operate heavy machinery and tools, drive commercial vehicles or surround themselves with combustible or flammable materials, the employer may require its employees to submit to random drug-testing and may take appropriate action for refusing to take or failing such test. In absence of this connection, an employer cannot submit its employees to random drug testing; however, pre-employment testing and testing in light of reasonable and specified individual suspicion are permitted. Hennessey v. Coastal Eagle Point Oil, Co. The New Jersey Supreme Court’s influential decision in Hennessey v. Coastal Eagle Point Oil Co., 129 N.J. 81 (1992), limits the right of private employers to conduct random (i.e., where there is no specified individual suspicion) drug-testing of current employees. The Court in Hennessey found that a lead pumper at an oil refinery was employed in a “safetysensitive” position. In finding the employee’s duties were so hazardous that being intoxicated would pose a threat to himself, his coworkers, and the public, the Court listed the potential hazards associated with the job. The Court emphasized that several administrators testified about the dangerous nature of the employee’s job and, furthermore, noted that the employee himself acknowledged the potential for danger and the importance to remain alert while on the job. Thus, the Court found a direct and immediate connection between the employee’s duties and a risk to the public’s safety and potential for harm. The mere possibility of a Utility and Transportation Contractor, OCTOBER 2014

negative impact on public safety is not a sufficient connection. Therefore, private employees in administrative roles, such as office staff, are likely not permitted to be subject to random drug testing. In summation, the Court upheld the public policy of privacy that, in appropriate circumstances, would support a New Jersey common law claim for wrongful termination against employers who randomly drug tested employees not in “safety-sensitive” positions. The employee’s individual privacy right must be balanced against the competing public safety interest when determining whether that employer may discipline an employee for failing or refusing to take a random drug test. An employer, on the other hand, may not discipline an employee for failing or refusing to take a random drug test where the employee’s duties do not fall into a “safety-sensitive” position. Doing so breaches a clear command of public policy because “[t]he public’s interest in ensuring that workers in “safetysensitive” positions are drug-free outweighs any individual right to privacy.” Implications Involving Collective Bargaining Most Collect Bargaining Agreements (CBAs) permit drug testing of employees; however, with the changing legality of substances, such as medicinal marijuana in New Jersey, UTCA Contractors who are signatories to CBAs must look to determine if their policies on random drug testing, as ruled in Hennessey, will withstand. New Jersey permits individuals with the following debilitating medical conditions to be prescribed and, thus, susceptible of testing positive by a random drug test for medicinal marijuana: Amyotrophic Lateral Sclerosis, Multiple Sclerosis, Terminal cancer, Muscular Dystrophy, Inflammatory Bowel Disease, or a Terminal illness with the prognosis of less than twelve months to live. Failure to provide reasonable accommodations to these employees may also subject the employer to liability under the American with Disabilities Act. Therefore, UTCA employers should consult their legal counsel for a detailed evaluation of their drug testing policies, applicable CBAs, and other rules and regulations to avoid potential and unforeseen results when disciplining their employees for failing or refusing to participate in a random drug test. 79

Utility and Transportation Contractor, OCTOBER 2014

NEW JERSEY INSTITUTE OF TECHNOLOGY BUILDING FOR NEW JERSEY & THE NATION

NJIT

, New Jersey’s comprehensive science and

technology university, is preparing students for leadership roles and personal success in an increasingly diverse range of fields. Founded in 1881, NJIT has had an especially close relationship with the construction industry over the decades. It is a relationship that continues to be fostered in the 21st century by essential support from organizations such as the Utility and Transportation Contractors Association of New Jersey, support that includes the association’s Samuel Luciano Memorial Scholarship.

NJIT President Joel Bloom

While NJIT graduates contribute their skills to construction projects across the nation, and in other countries, they have a distinctive presence in the university’s home state. New Jersey 82

construction firms employ numerous NJIT graduates — for example, more than 30 at one company alone. NJIT alumni have achieved success by starting their own companies based in New Jersey, and have advanced to lead major firms headquartered in the state. PSEG and the New Jersey Department of Transportation also are among the top employers of 2014 graduates. It’s not just the number of students who graduate from NJIT with the requisite skills that accounts for their presence in the construction industry. Equally significant are the character and substance of the education they receive. Graduates in majors ranging from mechanical engineering and concrete-industry management to interior design and architecture contribute to New Jersey’s built environment. But the NJIT programs in engineering technology and civil engineering are especially reflective of NJIT’s contributions to the field, which encompass all aspects of construction for site development, highways and utilities, and environmental remediation. Meeting Contractor Needs Within the Engineering Technology Department, students can focus on Construction Engineering Technology (CET) and Construction Management Technology (CMT) to connect with contractors and the UTCA. “The programs were created at the request of the construction industry, and our prime employers are contractors. The skill sets that we develop are precisely in this area,” says John Wiggins, coordinator for the CMT and CET programs. “These include scheduling and estimating, and construction contracts, safety and codes. We offer a course just on construction codes.” This preparation has earned NJIT students special recognition from the industry, such as the Sol Seid Student Award for Excellence presented by New Jersey Professional Engineers in Construction. NJIT graduates are managing work as UTCA members on virtually every major construction project in New Jersey, including the Pulaski Utility and Transportation Contractor, OCTOBER 2014

Students participate in the steel bridge competition.

Skyway and the Bayonne, Driscoll and Victory bridges, Wiggins adds. It’s the continuation of a connection that includes participation in the Associated Schools of Construction Northeast Regional Estimating Competition and internships that the UTCA helps to facilitate with industry partners through the Construction Industry Advancement Program. The emphasis on the internship experience at NJIT is a key factor in the employment success that NJIT engineering technology students have after graduation. “We have a really good, very important relationship with our industry partners,” Wiggins says. “Engineering technology is an applied study. Putting students on jobs where they can literally get their hands into the work being done is basic to a seamless transition between the classroom and the workplace.” Greg Mass, executive director of Career Development Services at NJIT, is just as emphatic about the importance of combining handson, practical engagement with work in the classroom and laboratory. “Our academic programs have a very strong real-world orientation, and that includes our stressing the value of internships, co-op employment and summer work relevant to a student’s major,” Mass says. “The statistics are compelling; the research is compelling. The new standard for entry level employees is to have the equivalent of a year of full-time work experience. Employers have a definite preference for such experience today in addition to the academic background that a position requires. Students who can’t put this on their resumes are at a serious competitive disadvantage.” Very Popular Courses Hands-on learning and industry partnerships also are very much part of NJIT’s civil engineering program, which adds the dimension of design to study in engineering technology. And student interest in construction and engineering management is very high, as Professor John Schuring notes. “Historically, I’d say that the courses in this area have been our department’s most popular offerings.”

Utility and Transportation Contractor, OCTOBER 2014

All civil engineering majors take the Construction Materials and Procedures course as sophomores, which requires them to report on visits to at least two construction sites. Their senior Capstone projects, which involve mentoring by faculty and industry experts, is a two-phase effort that entails proposing development and detailed design for a real-world site. “Today, with the amount of work under way in our area, students have the benefit of learning in a ‘living construction laboratory,’” Schuring says. Another key hands-on opportunity available to NJIT students is the Capitol City Infrastructure Internship Program, based in Trenton. For this independent study course, students work closely with a mentor from state or municipal government on projects such as assessing infrastructure conditions and proposing improvements. “Employers tell us that they have hired the NJIT grad from among all the candidates for a job specifically because our grad had this experience,” says Professor Taha Marhaba, chair of NJIT’s John A. Reif, Jr. Department of Civil and Environmental Engineering. Extracurricular activities, too, have a very real-world focus. The annual Steel Bridge event calls on participating students to design, fabricate, test and competitively assemble a 1/10 scale structure that is very lightweight yet strong. For nearly a decade, NJIT Steel Bridge Teams have been standouts in the competition. According to Marhaba, the success of NJIT students in the classroom and the workplace, and in events like the Steel Bridge competition, is directly linked to the practical bent of the university’s programs. “The feedback from our Industry Advisory Board, alumni surveys and discussion, and other industry contacts is that our graduates have the most hands-on preparation in the state, and that is very important in construction,” he says. Further, it’s feedback that clearly reflects the background of the department’s faculty. “We highly value what our faculty have accomplished outside of the classroom. We hire adjuncts who are working in the field, who have their own companies,” Marhaba adds. “The expertise that our full-time faculty members bring to the classroom from business is exceptional as well, and looking at our entire faculty, we have a greater percentage of licensed Professional Engineers than many civil engineering departments in the country.” Commenting on the healthy demand for construction professionals in New Jersey and nearby New York, Marhaba and Schuring both agree that NJIT graduates have an important role to play. In addition to the economic importance for the region, they cite the urgent need to address the national infrastructure challenges highlighted in America’s Infrastructure Report Card issued by the American Society of Civil Engineers (ASCE). “Overall, ASCE gives our country an infrastructure grade of D+,” Marhaba says. “Everyone in the construction industry can help to raise that grade.”

Utility and Transportation Contractor, OCTOBER 2014