Utility & Transportation Contractor October 2023

Utility & Transportation

contracTOR october 2023

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ment s p i u q e year way high rates 90 b cele

president’s message

From the desk of: gerard burdi

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s I embark on this year as UTCA President, I want to thank the association and Board of Directors for their support and trust in me. Having served on the association board for more than 25 years, I have had the pleasure of working closely with Bob Sr., Bob Jr., staff and fellow contractors. The education I have received from all of the experiences I have been through with these people has been invaluable in my personal development. I am grateful for all the support and courtesies everyone has shown me through these years. I know that the only way I can be effective over the next year will be with that same support.

for our industry and we expect to get that accomplished in the coming year. In the final months of Glenn’s leadership he worked diligently to update the association staff succession plan which received board approval at the end of August. I look forward to working closely with, and learning from, Dave Rible in his early years of leadership. As I approach the end of my association service in the coming years, I remain committed to the development of our young professionals. Having worked with several of these potential candidates, I am certain that the association will be well served in the future.

I am continually amazed at the leadership this association is able to have at the helm year after year. This past year has been another fine example of that. I cannot say enough about our past president, Glenn Ely. Glenn had a clear agenda at the beginning of his tenure and has made every effort to see that through. He has been on top of all industry issues as they arise and has gone above and beyond all expectations.

Glenn has repeatedly gone out of his way to keep me in the loop in preparing me for the upcoming year and I am proud to call him a friend. So, thank you Glenn for your leadership.

I want to congratulate this year’s awards recipients. John Keller, who served as Executive Director of the New Jersey Turnpike Authority, improved upon what was an already stellar organization. He is most deserving of this year’s President’s award. In addition, I’d like to congratulate Roly Acosta for the Robert A. Briant Sr. Memorial Award, Ron Tobia for the Larry Gardner Memorial Award and Tom Anselmi as our most recent Hall of Fame inductee. I have known these individuals for many years and have witnessed firsthand the passion they each have for our industry. It has always been an inspiration for me to watch people who compete against each other on a daily basis put personal goals aside to work together for the good of our industry and these men are fine examples of just that. I’d also like to congratulate Highway Equipment on 90 years in business.

While the association never has a shortage of issues to focus on, along with tackling never ending member issues, I think every UTCA president’s primary focus has been and will continue to be funding for our industry. On the transportation side, this year is no exception. Efforts have already begun at the State level for reauthorization of the Transportation Trust Fund prior to its June 30, 2024 expiration. Stay tuned for important updates in the ensuing months.

On the water and wastewater funding front, the association is actively pursuing a replacement for Dan Kennedy, who led the charge to secure funding on both the State and Federal level. Staff has provided an extraordinary effort in handling Dan’s duties since his departure this past May and they are to be commended for that. Notwithstanding that effort, another frontline issue will be to fill this vacancy with the right person.

We will continue to be diligent with issues related to project labor agreements. Work has already begun to perfect a standard PLA

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I look forward to this coming year with great enthusiasm. The confidence I have in my ability to succeed in this capacity is only due to the support team around me with the association staff, executive committee and Board of Directors. I thank you all for your continued support and look forward to a successful year ahead.

Gerard Burdi

CONTENTS

Cover story 60 utca's 2023 annual convention

60

DEPARTMENTS 2 President’s Message 7 Financial Overview 17 Legal Dig 27 Accounting Corner 35 safety perspective 47 Labor relations 75 the pipeline

FEATURES highway equipment celebrates 90 years 82

NEWS

87 the weaning time 93 electrification proposal is shockingly ill advised 97 september-suicide awareness and prevention month 103 significance of key performance indicators for heavy construction contractors 111 the cost of green energy goals

115 a modicum of certainty in an uncertain world 117 important differences between pollution insurance products

Published Bimonthly During 2023

2107 Route 34 South Wall, NJ 07719 PO Box 728 Allenwood, NJ 08720 PH: (732) 292-4300 FAX: (732) 292-4310 www.utcanj.org

Publisher: Robert A. Briant, Jr. Editor: Helene Nasdeo Editorial Contributors: Dan Kennedy, Ryan Sharpe, Dan Neville Advertising Manager: Helene Nasdeo Production/Graphics: Lauren Hagan, Helene Nasdeo Circulation: Helene Nasdeo Printed By: American Plus Printers Affiliations: ARTBA, Clean Water Construction Coalition, Water Infrastructure Network UTILITY 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.

Utility & Transportation Contractor | october | 2023 3

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

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he banking industry is applying renewed vigor and focus on ‘stress-test’ analyses due to current economic conditions and their impact on borrowers. Thankfully, the recent pandemic’s financial scare was short-term in nature, but prior to that, our economy enjoyed relatively low, stable interest rates and little, if any, inflationary pressures since 2008. These favorable conditions minimized credit risk associated with debt repayment and collateral coverage; all that has changed in the last year and a half.

Bankers are now aggressively assessing sustainable cash flow and the ability to manage it in a stress-test environment. Significantly higher interest rates have increased borrowing costs, which has reduced a company’s cash flow and lowered its debt service capacity. Further, the “stressed” cash flow reduces a business’ ability to borrow, causing banks to become increasingly more cautious.

The income statement has been impacted by more than just higher interest rates as inflationary pressures have reduced gross profit margins. Material costs have increased significantly, as have the expenses associated with transporting them. Companies have little control over these charges and continued upward inflationary pressures make it difficult to project costs accurately in the future. The inability to increase prices commensurate with the higher cost of doing business stresses overall profitability and cash flow even further.

The balance sheet is also impacted by these economic factors largely seen in increased levels of accounts receivable, inventory and payables. While payables can be used to some degree to fund increases in current assets, cash flow is still stressed, and the balance sheet gets weakened. These items, as well as the aforementioned higher borrowing costs and inflationary pressures, have made forecasting financial results increasingly more difficult.

These factors, and many more, have brought stress-testing to the forefront again. The analysis is not new, and it can be a very meaningful exercise, for both financial institutions and business owners. The items to ‘stress’ can vary and the two discussed above, interest and capitalization rates, are simple to modify or adjust. While interest rates seem high now, they can go higher and if so, a company’s ability to repay its debt or obtain additional funding can be jeopardized; a stress test will illuminate that.

Similarly, some real estate values are declining compared to prior valuations, with a stress-test illustrating the potential extent of the problem.

Financial overview

understanding the value of a "stress-test" analysis

A stress-test analysis is a credit management tool used by financial institutions to provide data that may point to potential weaknesses in a loan portfolio. It is a safeguard on a forward-looking basis, to protect the bank and its shareholders. The results, both good and bad, should garner communication between the bank and the borrower to allow for pro-active management of the areas of concern.

Borrowers should be aware of the metrics used by the bank in its stress-test analysis as the items are often outside management’s control. With a better understanding of the weaknesses identified in a stress-test environment, borrowers can look for ways to minimize them. A prompt response to a potential weakness shown in a stress-test makes it a meaningful exercise for the borrower as it can help management mitigate the areas being impacted. Preparing for the worst and hoping for the best is prudent and as Michael Altshuler once said, “The bad news is, time flies, the good news is, you are the pilot.”

I would like to take this opportunity to congratulate the 2023 UTCA Honorees: Roly Acosta, Ron Tobia, Tom Anselmi, Jr., John Keller, and Gerard Burdi. Congratulations also to Highway Equipment and its management team for celebrating 90 years in business.

Asset values, primarily real estate, have also come under stress over this period for a variety of reasons, including higher capitalization rates (rates used to determine an asset’s present value based on future cash flow) and reduced rental income. As capitalization rates increase, asset values decrease. This is especially true for some real estate asset classes like office and retail space, whose rental income/cash flow has recently declined. The resulting valuations can weaken a bank’s collateral position, further heightening credit risk.

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steps to avoid construction disputes

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ontractors often view success on construction projects in a binary manner: either they bring the project to a successful, on-time and profitable conclusion, or they need to win in litigation. Another component of success is avoiding litigation in the first place, even if disputes arise – which is almost a given on any construction project! Many disputes can be avoided by adopting certain practices and requiring that subcontractors and suppliers on the job follow these protocols. And if the dispute cannot be avoided, often these same practices will assist in building the best case to pursue claims.

Stakeholder Coordination Although contracts generally require regular meetings with the owner, design professional, general contractor and key subcontractors, the prime contractor should seek to promote a “buyin” for this process among its staff and its subcontractors. Rather than view the construction meetings as a place to voice a “gotcha moment”, all stakeholders can attempt to identify the likely points where conflicts may arise and agree to play an appropriate role in a system custom-designed to avoid or resolve them. Identifying and setting up systems to manage potential problems as soon as possible helps parties achieve common objectives and enhances the chances for the success of the project. Prime contractors should seek to establish these practices on every project: • Contractors (including subcontractors and key suppliers) should actively want to and try to participate in scheduling and coordination meetings with the owner/developer, if possible.

• The various contracts should mutually require parties to provide timely feedback on overlapping concerns such as scope gaps, responsibility matrices, and project scheduling.

• The parties should attempt to allocate risks between the parties most capable of preparing for, assuming, and mitigating those risks. For example, contractors should avoid assuming risks and being responsible for issues outside their control, including early project delays or supply chain disruptions.

• If permitted by the contract, consider appointing an independent advisor (or initial decision maker) to resolve contractor disputes as they arise as a means of trying to resolve issues and avoid expensive litigation. In the event a dispute cannot be resolved by the independent advisor, the formal disputes resolution procedures should be aligned among the contractors.

Scheduling On all projects, the schedule is a critical management tool to plan and coordinate work and avoid delays. It is likewise critically important to measure actual delays and to identify ways to mitigate or recoup delays incurred. A properly prepared schedule tells all project participants what others expect of them and what they can plan for and expect of other participants.

Legal Dig

By: adrienne isacoff, esq., florio, perrucci, steinhardt, cappelli, Tipton & Taylor LLC

As is the case with construction meetings, the project participants should avoid viewing the schedule as a weapon for claims.

A properly prepared baseline schedule that is regularly and accurately updated during the course of construction will reduce the opportunity for questionable claims and make legitimate disputes about delays easier to resolve.

It can be difficult to put together a comprehensive and accurate baseline schedule before all the project participants are under contract and formally on-board. Often, the prime contractors and subcontractors may have relatively limited scheduling information or performance dates and deadlines in their agreement at the time of execution. This is understandable, but the contracts and purchase orders should also anticipate the need for more vigorous schedules after contracting, but well before performance.

The level of detail of involvement with the schedule will vary among the contracting parties, but the prime contractor will likely have the most detailed baseline schedule and heaviest schedule update responsibilities. Of course, the performance of the prime contractor will be heavily dependent on its subcontractors and the downstream suppliers on whom the prime contractor depends to execute the work. Those subcontractors and suppliers also must know when their deliveries or services are required.

A comprehensive baseline schedule should be prepared as soon as practical and before construction begins. The prime contractor will typically be responsible for creating the baseline schedule. Subcontractors and critical suppliers should be required to provide key dates for and restraints to their deliveries and activities and should review and identify any inaccuracies in the proposed baseline schedule related to their deliveries and activities.

The baseline schedule is only the beginning. Regular updates are required throughout construction to reflect real progress, problems, and delays. The responsibility for schedule updates typically falls on the prime contractor, but all project participants should be required to provide accurate, updated information

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Legal Dig

and identify inaccuracies related to their scope. If properly updated, the project schedule can be the most effective means of critical communication and documentation of what transpired during the course of the project, for purposes of looking back as well as for planning toward completion.

Without proper updating, an inaccurate schedule update loses its value as a management tool and can mislead and confuse the situation during construction. In the event of post-construction disputes, inaccurate updates make proper allocation of responsibility for delays more difficult. In addition, the parties maintaining or not objecting to inaccurate updates may face an uphill battle in legal proceedings if they want to distance themselves from the schedule update after the fact.

Project Documentation and Communication.

On any construction project, there is a lot of written communications and documentation beyond schedule updates. The focus should not be on “scoring points” with nasty emails or creating a false or misleading record. Instead, all project participants must appreciate the importance for clear, accurate, and timely communication throughout the course of construction. This is necessary to maintain the real-time flow of critical information required by the contract and necessary for the smooth execution of construction and adjusting to changes or unanticipated circumstances.

In creating project communications or documentation, whether in the form of letters, emails, meetings, meeting minutes, change order requests or claims, daily reports, or otherwise, contractors should keep in mind these considerations to enhance communication during the project and to create accurate records in case of disputes later:

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• Comply with the timing and content of notice requirements to communicate important developments and to avoid unwittingly losing contract rights.

• Avoid emotion and personal or professional attacks. Focus on the facts and the technical and timing issues at hand.

• Consider the terms of your agreement. Frame your communication consistent with your rights and obligations and use language consistent with your agreement.

• If other documentation is required to understand the communication, specifically reference it and, if practical, attach it.

• Accurately indicate a level of urgency for action or risk long lead issues preempting urgent ones.

• Get problems on the table and seek ways to mitigate the situation as soon as practical.

Conclusion Implementing these project management approaches on construction projects should lead to better communication and transparency among the parties during the project and help the parties avoid or at least mitigate disputes. These approaches reflect the importance of providing project personnel with the forum and the procedures to maintain their focus on their mutual interest in a successful project, rather than claims and disputes.

How project personnel execute their responsibilities and communicate during construction is far more valuable, far cheaper, and far more effective than anything the most skilled attorney or claim consultant can accomplish after the fact in formal legal proceedings. If formal legal proceedings are unavoidable, these techniques enhance the prospects of success.

the quality of numbers: analyzing financial statements for contractors By: kyle hartranft, cpa, ccifp, marcum llp

Typically, when contractors look at their numbers, they look at their balance sheet, income statement, and statement of cash flows, as they should. But, reaching a more thorough analysis of a business’s financial standing requires going far beyond the bottom line on these high priority financial documents. To take a deeper dive into these numbers, let’s use the following examples.

• Efficiency Ratios o Backlog to working capital o Months in backlog These ratios are particularly important as they are often used as the basis for prequalification and bonding purposes. In the construction industry, there are general standards and many that apply to these ratios. Those commonly applied in the industry are as follows: General Construction Industry Standards: 10% Rule -- 10% Working Capital 10% Equity of Total Costs to Complete Working Capital -- 10-15% of Annual Revenue Backlog -- Equal to 1 years’ worth of Revenue Debt-to-Equity Ratio -- Below a 3:1 Ratio

ANALYZING THE FINANCIALS

Underbillings -- Under 25% of working Capital

Sure, you are compiling financial data, but are you analyzing financial statements? There are many critical analytical ratios for contractors. Here are a few of the most influential:

Profit Fade -- Less than 10% of the Original Estimate

• Profitability Ratio o Return on Assets o Return of Equity o Times interest earned • Liquidity o Current Ratios o Quick Ratio o Days of Cash o Working Capital Turnover • Leverage Ratios o Debt to Equity o Asset Turnover o Fixed Asset Ratio

Accounting Corner

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n the hyper-competitive construction industry, contractors are well aware that they must have a firm grip on all aspects of their business to remain competitive. Naturally, a primary focus is job profitability; without that, there is no business to operate. It is also extremely critical that contractors analyze their financial statements and understand the quality of those numbers. The ratios that those figures inform play a pivotal role in the prospects of construction contractors. To ensure your business's financial standing is accurately represented and your statements paint a compelling picture, you must understand how your financial statements are used by others, including how they analyze a construction firm’s financial statements.

Bonding -- 10-20 times Working Capital,10 times net worth Keep in mind that those reviewing your financial statements are using your numbers as a starting point for a deeper dive. To remain proactive and ahead of the curve, contractors must do the same. Let’s look at the following warning signs from the perspective of a potential financial partner.

CONTRACTOR WARNING SIGNS Significant Cost in Excess of Billings • Asset on the balance sheet - is it a “good” asset?

• If contracts are mostly underbilled it may be an indication of: • Poor billing practices; • Poor measurement of total job costs (which can be seen in the gross profit trend analysis); • Ineffective practices relating to estimating and quoting values and quantities (lack of front-end loading); and/or • Certain industry billing restrictions (such as input versus output measurements) that cause you to be underbilled.

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Significant Billings in Excess of Cost (“BIE”) • Liability on the balance sheet - is it a “good” liability?

• If your contracts are mostly overbilled, it may be be an indication that: • Billings in excess are not recorded on the balance sheet (cash/ accounts receivable); or

Accounting Corner

• The contractor uses cash from overbillings to fund other ventures (outside of company).

Instances of BIE raise the question: If the Company has $5,000,000 of BIE, but has cash and accounts receivable combined of $4,000,000 how will that impact the ratios of the Company?

WORKING CAPITAL & OWNER’S EQUITY Working capital is the most critical contractor ratio. It is a direct indicator of a contractor's short-term financial strength and is used to help evaluate its ability to fund construction projects. * To calculate working capital – current assets minus current liabilities Owner’s equity, often called book value or net worth, represents the accumulated earnings and invested capital since the company’s inception. * To calculate owner’s equity – total assets minus total liabilities

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Example A Contractor A has Current Assets of $1 million, Current Liabilities of $1 million, and a working capital of zero. However, assuming total assets are $3 million and total liabilities are $1 million, the complete Owner’s Equity is $2 million. Contractor A cannot fund projects. He may have equity, but that equity cannot be readily turned into cash.

Example B Contractor B has Current Assets of $2 million, Current Liabilities of $1 million, and working capital of $1 million. However, assuming assets are $2 million, and liabilities are $1 million, the total Owner's Equity is $1 million. Contractor B can have the ability to fund projects despite having less equity.

Conclusion Preparing financial statements and presenting them for prequalification, lending, or bonding is not enough. As the contractor, you must take a deeper dive and understand your financials. By doing this, you will be better positioned to achieve sustained success in this hyper-competitive industry.

About The Author . . . Kyle Hartranft, CPA, CCIFP, is a Director in Marcum LLP’s Tinton Falls, New Jersey office, providing compilation, review, and audit services to clients in the construction industry. He can be contacted at kyle.hartranft@marcumllp.com

making your mental health a priority By: john crain, haztek inc. regional operations manager

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t’s never a bad time to be proactive and take charge of our well-being as it pertains to mental health and self-awareness.

During this time of year especially, many of us are focused on recent objectives, goals, and initiatives — continuing to address how to align our daily work with clarity. For others, the sparkle of something new fades off into the distance as additional challenges develop and the “attempt to change for the better” is slowly forgotten.

How can we incorporate well-being and mental health into our everyday process? We can start by examining it through our physical, emotional, internal, and external experiences.

Physical Improving diet, prioritizing exercise, improving sleep patterns, and taking time to relax are critical steps to engage your body’s response to stressors — and create meaningful outcomes. Simple things like listening to music, going for a walk, and meditation are all physical ways to improve your mental health. Positive psychological well-being can reduce the risks of heart attacks and strokes. On the other hand, poor mental health can lead to poor physical health or harmful behaviors and chronic diseases.

More recently in post pandemic times, a significant increase in depression has been identified and has been linked to numerous chronic illnesses.

Emotional Emotional and mental health are intertwined and often interchangeable. The emotional side focuses on being in tune and aligned with our emotions, vulnerability, and authenticity. Having a good foundation of emotional health is a fundamental aspect of fostering resilience, self-awareness, and overall contentment. Characteristics that are found in people with good emotional health are strong self-awareness (with focus on accountability and accurate perception), emotional agility, strong coping skills, living with a purpose, and the ability to manage stress levels.

Internal struggles can develop from stressors, deflection, and suppression, and each one can affect how we think, feel, and act.

Some common internal stressors include an inability to accept uncertainty, pessimism, negative self-talk, unrealistic expectations, lack of flexibility, rigid thinking, and a need to always be perfect. We then may react with deflection to either throw others off course or mask a situation. Another response is to suppress feelings and thoughts. Stressors and deflection are internal responses that occur automatically and without mental effort — but suppression is a controlled, conscious effort that requires mental resources.

External Mental health issues also present themselves in external ways.

Unlike internal struggles, many issues have direct impact and results that can be recognized by other people. Lack of sleep, unhealthy food, and alcohol can all affect your body externally.

Alcohol has an effect on neurotransmitters, changing how your body would normally operate. One of the newly identified factors affecting people externally is social media, which many have found to have the most profound effect on our mental wellness.

To remedy some of these effects, people are often encouraged to spend time in the sunlight to manufacture vitamin D, connect with people to prevent loneliness, and find a way to review positive and informative social media posts in day-to-day life — while avoiding negative stories.

Safety Perspective

The World Health Organization defines mental health as, "A state of well-being in which the individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to his or her community."

Internal

The external factors discussed here can lead to direct and indirect behavioral changes. If not addressed, they can activate aggression, pattern shifts, and inconsistent responses — resulting in negative impacts that can affect problem-solving skills and cognitive thinking.

Taking Positive Steps The following items are just a few steps that you can take to improve mental health and develop cognitive, emotional, social, and physical resilience for a fulfilling life: • Adapt to change – remain flexible and open minded • Establish your immediate circle to surround you with healthy and inspiring relationships

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• Increase your self-esteem – take time to reflect on yourself to feel valued and empowered • Feel secure – be comfortable with your decisions • Practice living a balanced life – remember that it’s okay to say “no” to things • Encourage self-confidence by believing in yourself and pushing for personal growth • Remember the “3 R’s philosophy” – Rest, Recharge, Reset

Safety Perspective

• Prioritize health, whether it’s physical, emotional, or mental Every day we make decisions. Sometimes we make them based on previous memories, education, or newly gained insight. We are presented with challenges, opportunities, and experiences that need our attention and we have to be able to face these encounters with absolute clarity. We have many engineered and administrative tools that support our work to keep us safe. We have compliance standards that are expected to be followed to ensure safe operations. The one tool that needs the attention to detail, repeated care, and support isn’t on the worksite; it’s not in the job box or in your work truck — it’s your mind. It’s the most important, the most powerful, and the most impactful tool you have; it is carried by you and serviced by you —and you rely upon it day in and day out.

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Finding Resources Taking the steps to improve your situation and make positive changes in your life starts with knowing where to find the resources available to you. They begin at a community or local level and reach county, state, and national arenas. Your company may have an Employee Assistance Program to connect with to get support. There are multiple apps to assist with planning and supporting your goals and needs, such as Calm, MoodKit, and iBreathe. There are also many free options that are available for your use.

If you or someone you know is in crisis or mental-health related distress, please call the Suicide and Crisis Lifeline at 988.

This article was originally printed in GBCA’s Construction Today Magazine.

About The Author . . . John Crain is Regional Operations Manager at HazTek Safety Management. With over 25 years of safety experience, John provides leadership in the areas of field management, field service delivery, logistics, and operations. John is the quintessential “roll-up your sleeves” leader, committed to the professional development and ongoing success of every member of HazTek’s field team. In addition to his safety expertise, John has an extensive background as a firefighter and an EMT.

navigating hourly compensation of voluntary overtime work By: jonathan landesman, partner, cohen seglias pallas greenhall & furman pc

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Similarly, the New Jersey Wage and Hour Law (NJWHL) is the state-specific law governing wage and hour standards in New Jersey. The NJWHL aligns with numerous provisions of the FLSA, such as establishing rules for compensating hourly wage employees. Notably, the NJWHL mandates the payment of overtime wages at a rate of 1.5 times the regular hourly rate for hours worked in excess of forty-hours in a workweek. The NJWHL does not allow employees to work “off the clock” without compensation, even if they are willing to do so.

It is essential for both employers and employees to recognize that the law mandates compensation for all additional time worked, regardless of whether it was volunteered by the employee or requested by the employer. This legal framework is crucial for ensuring that the rights of hourly workers are protected and that they are fairly compensated for their efforts. Navigating this landscape is important not only for the employees who rely on fair compensation, but also for employers who must understand and adhere to these laws to avoid potential legal repercussions.

Record-Keeping and Employee Testimony

Legal Framework The Fair Labor Standards Act (FLSA) serves as the cornerstone of labor law in the United States and mandates that non-exempt employees are entitled to compensation for all hours, particularly when those hours exceed the standard forty-hour workweek.

This requirement applies regardless of whether the extra hours were volunteered by the employee or requested by the employer.

Furthermore, the FLSA prohibits employees from working “off the clock” without compensation. Even if an employee willingly works additional hours, the employer must pay the employee for the additional time worked.

Under the FLSA, the term “hours worked” encompasses any time an employee is required to be on duty, at the workplace, or at any other designated location. Additionally, this includes time spent waiting for work-related assignments, and any other activities deemed compensable. Whenever an employee works beyond the forty-hour threshold in a given week, the additional hours are classified as overtime, which must be compensated at a rate of “time and a half.” This principle holds true for voluntary overtime work as well. Regardless of the circumstances surrounding the overtime work – whether volunteered or requested – employers are legally obliged to compensate employees accordingly, in strict adherence to the FLSA and pertinent state wage laws.

Accurate record-keeping is a fundamental aspect of ensuring compliance with wage and hour laws. Employers bear the responsibility of maintaining accurate records of all hours worked by their employees. These records should include regular work hours, overtime hours, break times, and any other time spent on work-related activities. Employers who typically use timecards or electronic timekeeping systems to track employee hours should be regularly reviewing and updating employees’ time to reflect any additional hours worked.

Under the FLSA and NJWHL employees are not required to maintain detailed records of their hours worked. When it comes to voluntary overtime work, an employee can testify about the approximate number of hours they worked beyond their regular schedule. Employees can provide additional supporting evidence to corroborate their testimony. This evidence may include: descriptions of tasks completed, communication records, cell phone records, and security camera footage.

Labor Relations

n today’s fast-paced and competitive work environment, hourly employees are increasingly finding themselves at the crossroads of dedication and exhaustion. The demands of the modern workplace often lead these employees to voluntarily commit extra hours “after hours” to meet work requirements or fulfill company expectations. Whether this extra effort arises from their own dedication or stems from direct requests by their employers, it raises important questions about fair compensation and the legal obligations of employers.

In cases where employees provide credible testimony and supporting evidence, the burden of proof typically shifts to the employer. Employers must demonstrate that the employee’s claims are inaccurate or unfounded. Courts often give considerable weight to employee testimony, especially when it is supported by other forms of evidence. Unless an employer can convincingly refute the employee’s claims, courts are likely to rule in favor of the employee, ensuring they receive the unpaid overtime.

Employer Responsibilities To ensure compliance with labor laws, employers should make diligent efforts to track and record all hours worked by their employees. If an employee completes additional work after clocking out of their employer’s system, it is the employer’s responsibil-

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ity to make necessary corrections to the employee’s timecard.

Conducting periodic internal audits of wage and hour practices can help employers identify and rectify compliance issues before they become legal problems.

Employers should routinely track and monitor the hours worked by their hourly employees. Once an hourly employee exceeds the standard forty-hour workweek, they are legally entitled to overtime compensation, regardless of whether the employer has a policy restricting overtime. Furthermore, employers should provide training to both management and human resources personnel on wage and hour laws, including the proper treatment of voluntary overtime, to ensure that those responsible for record-keeping and employee relations are well-informed on the law.

Conclusion

Labor Relations

It is crucial for employers to understand their obligations when it comes to compensating hourly employees for voluntary overtime work. Compliance with the FLSA and state wage laws such as the NJWHL is essential to avoid legal consequences and ensure fair treatment of workers. Clear record-keeping, tracking hours, and adhering to overtime rules, are key aspects in maintaining a harmonious and lawful employment environment.

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Cover Story

UTCA's 2023 Annual Convention By: ryan sharpe, director of government affairs and communications

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he UTCA Annual Convention in Atlantic City was once again the place to be for anyone with an interest in the construction industry. This year was no different as over 1,100 people, representing more than 300 companies came together at the Tropicana Casino & Resort for networking, socializing and a few adult beverages. The Convention continues to draw those new to the Association as well as those who have been active members for decades and many others who are engaged in our industry.

The exhibit floor was once again the center of the action, featuring over 100 exhibitors representing all aspects of the infrastructure construction realm. Huge crowds roamed the massive space on both days as they interacted with exhibitors, contractors and other attendees who made the annual pilgrimage to “America’s Playground” on the last week of September.

The convention unofficially kicked off with the Fall Golf Outing which has become so popular it now includes more than 200 golfers who thoroughly enjoyed both Atlantic City Country Club in Northfield and Galloway National Golf Club in Gallo-

Guest Speaker Sam Childers

way. Those who participated enjoyed one of the two amazing courses, a delicious lunch and plenty of cocktails, thanks to our golf sponsor, Marcum.

Upon the conclusion of the golf outing, the Convention officially began with the Opening Reception and Dinner, sponsored by Foley. The dinner program began with a tribute to UTCA’s outgoing President Glenn Ely, who accepted the traditional personalized manhole cover provided by Campbell Foundry.

Glenn was lauded for his many successes during his term as president which included the establishment of steel and material escalation clauses at state agencies, efforts to recruit young people to the join the industry, the examination of different pension programs, the acceleration of Gateway Project bid schedules and increasing membership in the UTCA. Other honorees at this year’s convention included Rob Tobia of Tobia & Lovelace, Esqs. who received the Larry Gardner Memorial Award and Roly Acosta of JAG Companies who was presented with the Robert A. Briant, Sr. Award. Both gave moving speeches that invoked their rich histories in the industry that had many wiping tears from their eyes.

On Friday, UTCA’s Executive Director Dave Rible opened the lunch program by welcoming the overflowing crowd of more than 750 people to the Tropicana Ballroom. He then presented the President’s Award to John Keller of the New Jersey Turnpike Authority and inducted Thomas Anselmi of Anselmi & DeCicco into the New Jersey Construction Industry Hall of Fame.

Dave Rible presents Ron Tobia with the Larry Gardner Memorial Award.

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Following that presentation, Gerard Burdi was installed as the new President of UTCA, with the oath of office administered

The evening portion of the festivities featured the President’s Reception and PAC Auction where participants had the opportunity to bid on a variety of exciting prizes and various unique experiences, including luxury handbags, fishing trips, exclusive golf rounds, a drone, a hunting trip, a clay shoot, and tickets to sporting events featuring the Giants, Jets and Eagles as well as the Yankees, Flyers, and Devils.

by Brian Tipton of Florio Perrucci Steinhardt Cappelli & Tipton. Gerard laid out an ambitious agenda for the upcoming year which will focus on securing funding for the industry, including Brian Tipton inducts Gerard Burdi as UTCA's New President. the renewal of the state’s Transportation Trust Fund. In addition, he plans to continue working to improve Project Labor Agreements (PLA) and is committed to strengthening the UTCA, with This year’s auction also featured paintings from a world-renowned an emphasis on increasing the participation of younger Associ- artist who auctioned off a personal painting of the winning company’s logo. Those in attendance were able to watch him put ation members. the finishing touches on his renderings of the logos of Northeast After the award presentations, the crowd was riveted by keynote Remsco Construction, Huxted Trenchless and Caldwell Marine. speaker Sam Childers who regaled the crowd with his life story which has seen him transform from a drug-addicted outlaw bik- Proceeds from the auction benefit our PAC, Constructors for er to a God-fearing man dedicated to rescuing children in war- Good Government, which helps amplify our Association’s voice torn countries in Africa. Childers’ remarkable life and the work in Trenton. Thank you to C&H Agency who was the premier sponsor of the President’s reception and to everyone who conhe performs through his non-profit, Angels of East Africa, were tributed to the Auction which raised over $17,000 for our PAC. depicted in the movie, Machine Gun Preacher in which Childers Thanks as well to the PAC sponsors, Cohen Seglias, South State, is portrayed by Gerard Butler. This amazing story will also be JESCO, Earle Asphalt, Northeast Remsco Construction, M.L. featured in both an upcoming sequel and a documentary.

Ruberton Construction Company, EIC Associates and Atlantic Thanks to the Engineers Labor-Employer Cooperative, which Concrete Company. sponsored this year’s riveting keynote speaker and to our premier lunch sponsor, Komatsu.

Cover Story

Glenn Ely accepts his personal manhole cover from George Campbell.

After lunch, the exhibit floor re-opened and was once again a buzz of activity. As always, the Money Booth drew huge crowds of spectators who watched intently as contestants were given 20 seconds to grab as much cash as possible as it swirls around them.

This year’s lucky winners snagged more than $500 out of the air.

Other winners of the exhibit floor drawings took home prizes that included a Ceasar’s vacation, an Amazon gift card, a ladies’ handbag, and a Nespresso maker. Jim Duffe from George Harms Construction took home the grand prize trip to St. Maarten, sponsored by Hoffman Equipment.

Thomas Anselmi accepts the award for his induction into the NJ Construction Industry Hall Of Fame.

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into the wee hours of the morning thanks to our event sponsor, Graham Company.

Cover Story

Before heading out of Atlantic City on Saturday morning, many attendees enjoyed a delicious meal at the Farewell Breakfast, compliments of our premier sponsor, Construction Risk Partners.

As always, we would like to thank everyone who participated in our convention. We could not put on this event without the support of our generous sponsors, exhibitors, and attendees. We also want to express our gratitude to the Convention Committee who works hard to make sure the convention is not only a success but keeps getting better each and every year. The committee, along with UTCA staff are already hard at work planning the next convention and we can’t wait to see what they have in store for next year. We look forward to seeing you all at the Borgata in 2024!

Roly Acosta accepts his Robert A. Briant, Sr. Memorial Award from Dave Rible.

Despite the busy schedule the fun continued late into the night with the Emerging Leaders Happy Hour at Chickie’s & Pete’s. At this jam-packed event, over 100 attendees continued networking

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constructors for good government 2023 contributors

UTCA would like to thank all firms that have contributed to our Industry PAC for 2023 President’s Club

Asphalt Paving Systems J. Fletcher Creamer & Son Crisdel Group D’Annunzio & Sons George Harms Construction Montana Construction Northeast Remsco Construction PKF Mark III Petillo Inc. Union Paving & Construction

Governor’s Level Black Rock Enterprises Schifano Construction Skoda Contracting South State Inc.

Ambassador Level

Anselmi & DeCicco Gray Supply P&A Construction R.E. Pierson Construction Road Safety Systems Traffic Lines Zone Striping

Leadership Level

B. Anthony Construction Bayshore Recycling Carbro HBC Company Haines & Kibblehouse New Prince Concrete Construction Orchard Holdings M.L. Ruberton Construction Smith-Sondy Asphalt Construction Underground Utilities Corp.

Yonkers Contracting

Platinum Level

Berto Construction C&H Agency Creamer Environmental Daidone Electric Inc.

Della Pello Contracting FAI-GON Electric GMP Contracting LLC Green Construction Henkels & McCoy Highway Traffic Control Hoffman Equipment Lehigh Utility Associates Metra Industries P.M. Construction Penn Bower Pillari Brothers Pioneer Pipe Contractors Sa & Sons TrenchTech Inc. Work Zone Contractors

Gold Level

J.A. Alexander Inc. Alpine Painting & Sandblasting Atlantic Cordage Brent Material Company CATS Sweeping CLB Partners CRS Contractors Caterina Supply MECO Inc. Mathis Construction Paolella Pro-Filing Ritacco Construction SJA Construction Scafar Contracting UC Management V.A. Spatz & Sons Construction

Silver Level

B&W Construction Diaco Contracting Inc. DBA Grade Construction Pennoni Perna Finnigan Renda Roads TKT Construction Taylor Oil Company Trench Technologies Trevcon Construction Walters Marine Construction Winzinger Inc. Zack Painting

Bronze Level

AJM Contractors JM Ahle Company Arawak Paving Capital Steel Service Coppola Services Edward H. Cray Inc. Creative Employee Benefit Services Diacon USA Patrick Dicerbo /Northwestern Mutual Jersey Construction J.C. MacElroy Co., Inc. Oxford Construction Services Sussman Enterprises TKT Construction Walters Marine Construction

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

water funding, regulations continue to impact the water infrastructure field By: ryan sharpe, director of government affairs and communications

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President Biden’s Budget proposed $1.63 billion for Clean Water SRFs and $1.2 billion in general fund base allotments for Safe Drinking Water SRFs. The President’s Budget rejects earmarks as a takedown from the basic SRF funding.

The Pipeline

hether in Trenton or Washington, infrastructure, or Congress then went on recess with only one of the 12 appropriamore specifically, infrastructure spending continues tions bills having passed either House, so a continuing resolution to be at the forefront of many policy discussions and is likely and necessary to avoid a government shutdown. this year is no different.

The Coalition continues to express concern about the FY24 apClean Water Spending propriations process regarding final funding of the SRFs and earmark funding which has resulted in takedowns from base SRF Readers of previous Pipeline articles may be aware that UTCA allotments. This policy is contrary to the goals of the Bipartisan staff chairs the national Clean Water Construction Coalition Infrastructure Law which was intended to increase clean water (CWCC), whose primary mission is to advocate for federal fund- spending. ing.

Federal funding is critical to help fix the myriad of New Jersey's You may recall that in the spring, Congress and the President water issues, including contaminated drinking water, antiquatengaged in a heated debate over-extending the debt ceiling that ed stormwater systems, and lead service lines. While the fedthreatened to shut down the government. While that crisis was eral government has been appropriating vital water funding, averted, this disagreement continues to affect next year’s federal the CWCC and UTCA continue to advocate for increased state budget, including funding for water infrastructure. and federal investment that is critical to addressing our significant water infrastructure needs. As such. it is important to note While the debt ceiling agreement capped discretionary funding that Governor Murphy and the Legislature did direct $1.2 billion at Fiscal Year 2023 levels, House Republicans decided that fundfrom the American Rescue Plan to accelerate much-needed waing would be capped at Fiscal Year 2022 levels. As of this writing, ter infrastructure projects. this issue remains unresolved with the House and Senate Interior Appropriations Committees passing bills that differ significantly UTCA is also a part of a New Jersey coalition seeking additionin State Revolving Fund (SRF) appropriations. al water funding, known as the Clean Water, Healthy Families Good Jobs Campaign which advocates for the state to invest in Specifically, the House bill provides a general fund base allotment our water infrastructure. This coalition, consisting of environof $535 million in Clean Water SRF funding, plus $470 million mental organizations, labor groups and various stakeholders, for earmarks. The Senate version provides a general fund base was able to secure $354 million in state investment in clean water allotment of $1.29 billion, plus $345 million for earmarks. The over the past two years.

Bipartisan Infrastructure Law (BIL), which was not changed by either bill, provides an additional $2.62 billion for the Clean Wa- Environmental Justice ter SRFs. As you are likely aware, Governor Murphy has made reducing For Safe Drinking Water SRFs, the House Interior Appropriations pollution in certain overburdened communities--often referred bill provides a general fund base allotment of $460 million, plus to as “Environmental Justice Communities”-- a priority for his $410 million for earmarks. The Senate bill provides as a general administration. Following passage of an environmental justice fund base allotment, $882 million and $244 million for earmarks. law, the New Jersey Department of Environmental Protection The BIL, which was not changed by either bill, provides an addi- (DEP) enacted legislation to implement the goals of this legistional $3 billion for the Safe Drinking Water SRFs. lation.

Under the new rules, certain industrial facilities seeking permits in overburdened communities must now adhere to new permit conditions to avoid disproportionate exposure to pollutants and other public health irritants. The facilities covered include:

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• Sewage treatment plants that process more than 50 million gallons per day • Recycling Facilities that receive at least 100 tons of recyclable material per day • Solid waste facilities and transfer stations • Major sources of air pollution as defined by EPA at 40 CFR 70.2 (gas-fired power plants and cogeneration facilities) • Incinerators and resource recovery facilities • Medical waste incinerators (with exceptions) • Landfills and • Scrap metal facilities UTCA engaged with policy makers throughout the process to mitigate the impact of this initiative on infrastructure projects and provided formal comments on these rules. We were successful in helping to secure language in the law exempting projects that provide a “compelling public interest”.

The Pipeline

The Department also provided examples of potential qualifying projects, which include public water infrastructure and projects designed to reduce the effects of combined sewer overflows. Another positive outcome in the rules was the removal of language that would have allowed local governments to unilaterally veto permits and approvals.

In addition to being work performed by many of our members, these projects will have tremendous benefits for our environment and will help improve public health. As such we are pleased with some of the changes to this policy and we will continue to keep you informed as the rules are implemented.

Clean Energy Another priority of Governor Murphy and many of his colleagues in the Legislature is transitioning our state away from the use of fossil fuels and toward clean energy. While the Governor has expressed his clean energy goals through executive orders and his Energy Master Plan, the Legislature has not implemented the laws needed to enact these goals.

However, Murphy has unilaterally pursued these goals which aim to require 100% of motor vehicles sold in New Jersey be electric and mandate the electrification of heating systems for hundreds of thousands of homes and businesses.

Murphy has sought to enact these policies by directing state agencies to promulgate rules that largely would have the same effect as legislation. Recently, the Board of Public Utilities adopted rules to begin to decarbonize the building sector, which could result in a ban on gas stoves and require buildings and homes to switch to electric heating systems, both of which could be quite costly for residents and our industry.

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In addition, recent draft rules proposed by the DEP would phase out all gas vehicles by 2035 and would require 35% of all new vehicles sold be electric by 2027. For comparison, it took almost a decade for New Jersey to reach 9% electric vehicle sales.

While most of these proposals apply to passenger and light-duty vehicles, we are monitoring this issue closely, especially as policy makers consider any electrification mandates related to construction equipment.

Uniform Traffic Control, Inland Flood Rules While much of the news related to water infrastructure often presents more challenges for the industry, there is some good news to report.

In the next few weeks, the New Jersey Department of Community Affairs (DCA) will release new regulations on Uniform Traffic Control fees imposed by local governments for construction projects. UTCA staff have met with DCA and many stakeholders affected by the excessive costs imposed by many New Jersey municipalities.

The new rules would prohibit charging for expenses not directly attributable to providing an off-duty law enforcement officer and cap the administrative fees at the same level as the hourly compensation cost for the lowest-paid government employee that can efficiently perform these tasks. The rules also require surety bonds to be released within 30 days.

These reasonable limits on traffic control fees will have significant benefits for our industry without compromising public safety.

In addition, the DEP has adopted inland flood rules that could have been detrimental to many planned infrastructure projects in New Jersey. The new standards for building in flood-prone areas of the state addressed many of the concerns expressed by the UTCA. In addition to providing comments on the proposal, UTCA has been working with a coalition and our labor partners to amend the proposed rules to mitigate the negative impact on the construction industry.

We are particularly pleased that our priorities of exempting transportation projects and existing infrastructure projects, including pending projects that are administratively complete, were included in the final rule.

Clearly the past few years have seen significant developments in the water and energy sectors that have had both positive and negative results for the industry. However, the one thing that is certain is that the focus on these issues will continue for many years to come.

Feature Story

with a legacy as solution partners, highway equipment celebrates 90 years of being urgent about uptime by: lisa butler, highway equipment company marketing coordinator In a journey spanning 90 years, Highway Equipment Company has established itself as one of America's leading sales, rentals, parts, and service providers of machinery for various industries such as construction, landscaping, demolition, oil and gas, mining, quarrying, and industrial material handling. From humble beginnings in a one-room office to a leading distributor of heavy equipment and tractors across 10 states, ‘Highway’ has always been committed to its purpose of “making uptime easy for our partners, to build a better America.”

That purpose was on full display in May when Highway Equipment Company celebrated its 90th Anniversary at its Millstone, NJ branch. The family-friendly event was an opportunity to thank customers, show off the latest equipment from their manufacturers, and just have some fun. A clever excavator obstacle course offered some friendly competition among operators requiring precision placement of a beam and delicate manipulation of a steel ball. And the kids weren’t left out with fun activities including bouncy houses and the chance to climb into real equipment. With food and ice cream from local businesses, a great time was had by all.

Front Lawn Display

its customers. Rather than just selling equipment, Highway strives to provide innovative solutions that address their customers' distinct requirements. This mindset has been instrumental in fostering strong, long-lasting relationships with partners while leveraging the unique capabilities of its OEMs (original equipment manufacturer).

The second pillar, “Be Urgent About Uptime”, highlights Highway’s relentless focus on minimizing equipment downtime. The company fully acknowledges the significant costs and productivity losses associated with equipment downtime for its customers. With proactive telematics, preventive maintenance, and expedited repair services, Highway works to ensure partners’ equipment (and people) are running at peak efficiency.

Being a “Joy to Work With” is Highway’s third strategic pillar and encompasses more than just being friendly, explains Highway President, Thom Reynolds. “We realize that our relationship with our partners extends beyond the equipment. That’s why we strive to remove any friction a partner might experience in working with us.

We even formed a task force called ‘The Friction Fighters’ that’s made up of people across the company who are empowered to find and eradicate friction. Heavy equipment can be fun and we’re always on the lookout for ways to make things smoother for our part-

Regional Account Manager, Brian Hammond, discussing the features of the various Kobelco models to a group of customers.

Throughout the event, signs celebrated “90 Years of Uptime” and showcased Highway’s strategic pillars of being “Solution Partners”, “Urgent About Uptime”, and a “Joy to Work With”. Those principles were clearly demonstrated by their whole team.

The first pillar, “Be Solution Partners,” reflects the company's proactive approach to understanding the unique needs and challenges of

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The touch-a-truck area for children attending the celebration with their parents.

ners,” says Reynolds.

The expansion into New Jersey in July 2019, with the acquisition of Harter Equipment, a New Jersey establishment of more than 52 years, marked a significant step in the company’s growth trajectory. Both were multi-generation, family-run businesses with complimentary company cultures and similar brands of equipment like Kobelco and Bell Trucks. As part of a larger organization, the acquisition provided the customers with more access to larger equipment and attachments as well as equipment Harter did not deal in, such as screening and crushing products. Highway Equipment Company gained a large facility and state-of-the-art equipment from Kubota and Hitachi to add to the company’s portfolio. More importantly, they welcomed a team of seasoned experts into the Highway Family that continues to provide their New Jersey customers with great service, support, and experience for their equipment needs.

Now, Highway is repeating its success with the acquisition of two well-established tractor dealerships in North Carolina. These acquisitions have led to the birth of Highway Equipment & Tractor, a new division designed to replicate Millstone’s success with Kubota while expanding Highway’s highly acclaimed service to the Carolinas. "We're thrilled to welcome Lake Norman Tractor and Charlotte Tractor into the Highway family," said Reynolds. “As an Elite Kubota dealer in Millstone, NJ, we aim to replicate the success of our solution-partner mindset in serving the Carolinas."

Feature Story

The roots of Highway’s success trace back to 1933, when D. L. "Lee" Reynolds and J. F. Docherty founded Highway Equipment Company in the midst of the Great Depression. Despite the economic hardships, they established a strong foundation for the company that led to decades of steady growth and expansion for this third-generation, family-owned and operated company.

Looking ahead, Highway is poised to build on its legacy as a solution partner. The company's ethos, combined with its strategic growth plans, lays a promising roadmap for the next 90 years.

Thom Reynolds, President & CEO of Highway Equipment, and John McNally, Regional Sales Director, chatting with celebration attendees.

As Reynolds eloquently sums up, "Our 90-year story isn't just about selling equipment; it's about building enduring relationships, relentlessly pursuing excellence, and above all, being solution partners to our customers. We are excited by the journey we will share with them."

Founded in 1933, Highway Equipment Company is a family-owned and operated business. Based in Zelienople, PA— approximately 22 miles north of Pittsburgh—the company has locations serving Pennsylvania, Ohio, New York, Virginia, New Jersey, Maryland, West Virginia, North Carolina, South Carolina, and Tennessee.

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NEWS

the weaning time By: juan augustine gutierrez The following essay was written by Juan Gutierrez in January 2022 to commemorate the 60th anniversary of his arrival to the United States under Operación Pedro Pan (Operation Peter Pan). The operation was a mass exodus of over 14,000 unaccompanied Cuban minors ages 6 to 18 to the United States over a two-year span from 1960 to 1962. The children were sent by parents who feared that Fidel Castro and the Communist party were planning to terminate parental rights and place minors in communist indoctrination centers. The program was led by Father Bryan O. Walsh of the Catholic Welfare Bureau. The operation was the largest mass exodus of minor refugees in the Western Hemisphere at the time.

M

ost children in our society get to live with their parents until they are 18 years old. The Pedro Pan kids did not have that privilege. I was 13 years old when I left home.

On the morning of January 28, 1962, I began my weaning process. After waving goodbye to my parents and three of my grandparents at the infamous Pecera (fish tank) in Havana Airport, our Pan Am plane, a 4-propeller Viscount, lifted slowly over Havana. It was a bright sunny morning, and I could appreciate the beautiful city below. It would be the last time I would see the land where my Spanish ancestors had decided to settle back in the 1850’s and where I was born.

My arrival in Miami was an adventure for me. After going through immigration, I stood alone with my duffle bag on the sidewalk of Miami’s airport. Two men approached me and asked if I was Juan Ramon’s son. I answered yes and they whisked me away. I was taken to the refugee-processing center where Pedro Pan children were registered. I informed the woman that a great uncle in New York was willing to take me in; all there were elated for it was one less child to worry about. Three days later, I was off on Eastern Airlines to Idlewild Airport in New York City.

I arrived in New York City at 1pm on February 1, 1962, on a cold snowy night. The next morning, I awoke to a wonderful winter wonderland; I had satisfied my dreams of seeing snow, something I still enjoy. That first night I slept in a folding bed that I

placed next to the warmth of the boiler in my uncle’s basement.

That was my bed for the next 4 ½ years.

My uncle and aunt were very honest hardworking people and they provided me with food, shelter, and protection with familiar surroundings. We lived in Whitestone, Queens--a middle class neighborhood totally absent of any minorities. Because of my immersion in American culture, I nearly forgot how to speak Spanish. I longed for my mother’s overindulgences and my father’s long conversations on the way to his ranches. He seemed to know every cattleman and landowner in Camaguey. I missed my whole family. I missed my friends. I missed my old Marist school. I missed Old Cuba.

In August of 1962, I learned that my father was taken prisoner and would likely face the firing squad. I received a farewell letter from him, and it saddened me profoundly. But for the grace of God, his life was spared by our fortunate ability to buy off the judge. This incident caused me to resent Cuba and all things Cuban, and I just wanted Cuba out of my mind.

As all other Pedro Pan kids, I suffered depression, poverty and loneliness. I grew up faster than most children, and those hardships strengthened my character.

In June of 1966 my parents and my little brother arrived in the freedom flights-my weaning was complete. I had practically forgotten what they looked like or the tone of their voices. In the end, both of my grandfathers and my father served time in Cuba’s jails as political prisoners and all of the wealth accumulated over 100 years of hard work was gone.

But freedom is a wonderful thing, and we were lucky to have attained it in the United States. Today my family lives a prosperous happy life in the good old USA. Written by Juan on January 28th, 2022. The 60th Anniversary of his arrival to the United States.

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By: Dave Rible, executive director, utca of nj

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here is near-universal agreement among the state’s utility providers and construction industries that we must deal with climate change. Many of these companies and organizations are already taking steps, on their own, to deal with the issue. The New Jersey Board of Public Utilities’ (BPU) proposal to electrify buildings, however, has brought these groups together in another way: to showcase just how potentially damaging this proposal is to the people of New Jersey.

Earlier this year, Governor Murphy issued an executive order calling for 400,000 homes, 20,000 commercial buildings and 10% of all low-to-moderate income buildings to have zero-carbon-emission heating and cooling systems by 2030. Earlier this month, the BPU planned on beginning to implement these goals through a plan that would force electric utilities to begin this electrification process. Fortunately, the proposal was pulled from the agenda. But it still lurks and with it, all the issues that come with this poorly thought-out proposal.

Perhaps the biggest question is whether electrification and meeting the governor’s goals is even possible. The short answer is no.

The infrastructure to meet these standards does not exist, neither in New Jersey, nor anywhere in the country. Current transmission lines went up when Mickey Mantle and Willie Mays were still playing baseball. They were built for another time and are simply not equipped to handle the influx of electric power needed under the BPU’s proposal.

Think about the extra capacity needed for our electric grid to power an additional half a million buildings. Now consider that New Jersey does not have the capacity to provide ample charging stations for the state’s electric vehicles. NJ Coalition of Automotive Retailers President Jim Appleton recently noted that his organization is attempting to upgrade three chargers at their headquarters but they’ve been told by the utility that it will “be 42 weeks before they can install the transformer needed to upgrade our service.” The recent proposal by Governor Murphy to require, by 2035, that all new cars sold in New Jersey be electric will not only exacerbate this problem, but it may have the unintended consequence of merely proving how unprepared we are for electrification in general.

NEWS

electrification proposal is shockingly ill advised the grid to meet the energy needs required under this proposal.

To provide a sense of how extensive those changes would be, the U.S. Department of Energy has estimated that the cost of creating a clean electricity grid could reach over $1 trillion.

Cost, meanwhile, factors heavily into the BPU’s proposal. It has yet to be identified just how the costs of this extensive electrification will occur. In testimony submitted to the BPU, PSEG noted that even if every utility was given $10,000 per home for this effort, it would only convert 15,000 homes in three years, “leaving 385,000 homes to be converted” by 2030.

Will homeowners be left on the hook to cover those costs, and for a program they essentially had no say in? As representatives of the construction industry, we find such a scenario especially disturbing. The industry is moving toward electrification of vehicles and equipment but that pace is slow because the energy and materials needed to support electrification just do not exist in abundance. Who is to say that we are not next in the rush to electrify without considering the consequences.

This rush to electrify could have long-term consequences. Last year, California had to tell residents to conserve energy in the middle of a heat wave or face devastating rolling blackouts because their energy grid was stretched so thin. In 2021 Texas suffered heat outages during a historic winter storm. Is that what we want in New Jersey? Electric heating and air conditioning won’t make much difference if our grid system completely collapses under the weight of this proposal.

We have to deal with climate change in a smart, effective manner.

This proposal, however, is essentially plugging one hole in a dam only to create three more. Rushing to electrify buildings when the capabilities to do so literally do not exist will cause substantial damage to the state and to ratepayers. The BPU should shelve this plan for good and the state must come up with a comprehensive plan on this issue that addresses costs, supplies and realistic timing.

Dave Rible is Executive Director of the Utility and Transportation Contractors Association of New Jersey.

Some might ask, “Why not just update the infrastructure?” We certainly would not object to that. In fact, it’s completely necessary. The size and scale of the upgrades necessary, however, will not be accomplished overnight. It will take years to transform

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NEWS

september - suicide awareness and prevention month By: karen walsh, senior account manager- employee benefits, ioa

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lthough the month of September has come and gone, I didn’t want to miss the opportunity to provide an important reminder that suicide and mental illness are topics that we need to be aware of and sensitive to all year long.

Tragically, suicide is a leading cause of death for Americans, but much like mental health in general, the topic rarely gets the attention it deserves.

There is a stigma against discussing suicide and mental health in the United States that hinders meaningful conversation about the topic. Open dialogue is an important part of preventing these tragic deaths and establishing safety outlets for those in need.

Below are a few general facts and tips identifying ways in which employers can help curb this growing epidemic: • By current estimates, about 1 in 5 Americans are living with a mental illness.

• Suicide is not a new issue. It has been among the top 12 leading causes of death in the U.S. since 1975, according to the Centers for Disease Control and Prevention (CDC), and its position has only risen since then.

• Since 1999, suicide rates have increased more than 30%, according to the CDC. In 2018, there was approximately one suicide every 11 minutes—totaling more than 48,000 deaths that year.

The CDC offers a number of resources aimed at addressing and preventing suicide resulting from mental illness. Below are a few: • “Preventing Suicide: A Technical Package of Policy, Programs, and Practices” (www.cdc.gov/violenceprevention/pdf/ suicideTechnicalPackage.pdf) • Important information about suicide in the United States (www.cdc.gov/vitalsigns/suicide) The National Suicide Prevention Lifeline is another organization committed to suicide prevention. They created the “Be The 1 To” campaign to educate people about helping those who suffer suicidal thoughts. Their website (www.bethe1to.com) provides more information about how to help.

The group also offers a free, 24/7 phone and chat service for those experiencing suicidal thoughts or advocates who need resources to help a loved one. The calls are confidential and are well-regarded as helping the individuals who call. Here is their contact information: • Website: www.suicidepreventionlifeline.org 1-800-8255

Telephone:

For more information on mental wellness benefits or programs available, contact Insurance Office of America.

What can Employers Do? Mental Illness comes in many forms and probably affects more employees than they know. This is why employer-sponsored assistance programs are so important. Employers should foster a safe environment that encourages employees to speak up if they are feeling overwhelmed by work, as this is a significant stressor for depression and other mental illnesses. Beyond reassessing company culture, organizations can offer referrals or access to mental health professionals through their Employee Assistance / Mental Wellness Program. One of the most effective ways to reduce suicide is by being there for someone in need.

Reminder: Medicare Part D Notice Deadline Coming Soon The Medicare Modernization Act (MMA) requires entities, whose policies include prescription drug coverage, to notify Medicare eligible policyholders whether their prescription drug coverage is creditable coverage, which means that the coverage is expected to pay on average as much as the standard Medicare prescription drug coverage.

For these entities, there are two disclosure requirements detailed below:

Additional Employer Resources:

1) Disclosure Notice to Employees Before October 15th, 2023

Anyone can access this information, but, as an employer, you have the opportunity to proactively share these links with employees. Consider sending an email or hosting a meeting to discuss this serious topic.

Each year, group health plan sponsors are required to disclose to individuals who are eligible for Medicare Part D, if the prescription drug coverage being offered is either creditable or non-creditable in comparison to that being offered through a Medicare Part D plan.

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NEWS

The purpose of this notice is to give individuals who may be Medicare eligible the information they need in order to make an informed decision about whether to enroll in a Medicare Part D plan or stay on the employer’s plan.

Employers should work with their insurance carrier, TPA, broker or an actuary to determine if their coverage is creditable or not and provide such notice to Medicare-eligible individuals before October 15th of each year. Model notices are available through the CMS website and can be accessed by clicking here model disclosure notices. These notices must be distributed before October 15th of each year.

2) Disclosure Notice to CMS Group health plan sponsors are also required to complete an online disclosure form with the Centers for Medicare & Medicaid Services (CMS) on an annual basis and at other select

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times, indicating whether the plan's prescription drug coverage is creditable or non-creditable.

This disclosure requirement applies when an employer-sponsored group health plan provides prescription drug coverage to individuals who are eligible for coverage under Medicare Part D. The plan sponsor must complete the online disclosure within 60 days after the beginning of the plan year.

For calendar year health plans, the deadline for the annual online disclosure is March 1, 2024.

For more information or guidance on this topic, please reach out to Insurance Office of America.

By: salvatore schibell, cpa, cfp, cgma, ms taxation, mba

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n the competitive world of heavy construction, the ability to effectively plan, execute, and complete projects is vital. Success hinges not only on machinery and manpower but also on astute financial management, operational efficiency, and the relentless pursuit of quality. Enter Key Performance Indicators (KPIs) – the data-driven guiding lights that illuminate the path toward excellence for heavy construction contractors. In this article, we delve into KPIs, understanding their significance, and uncovering why they are indispensable for heavy construction contractors to watch.

Defining KPIs Before we delve into their importance, let's establish a clear understanding of what KPIs are. KPIs are quantifiable, measurable metrics that provide insights into various facets of a business's performance. KPIs are used to evaluate and track progress toward achieving specific goals and objectives.

In the realm of heavy construction, where colossal projects, substantial investments, and intricate logistics are the norm, KPIs take on a unique significance. These metrics go beyond mere numbers; they encapsulate the essence of a contractor's financial health, operational prowess, project execution, and the overall trajectory of the business.

Financial Health Assessment First and foremost, KPIs offer a profound assessment of a contractor's financial well-being. For any heavy construction contractor, fiscal stability is the bedrock upon which all operations stand. Robust financial health enables a company to weather economic downturns, seize growth opportunities, and attract investors. Let's explore the financial KPIs that hold particular importance: • Return on Assets (ROA): ROA measures how efficiently a contractor utilizes its assets to generate profits. For heavy construction, where expensive equipment and machinery are integral, optimizing asset utilization is paramount. A high ROA indicates effective asset management, which can lead to enhanced profitability. ROA is calculated by dividing a company’s net income by its total assets.

• Return on Equity (ROE): ROE assesses a contractor's profitability concerning equity. It demonstrates how well the company generates profits in relation to its shareholders' equity. A

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the significance of key performance indicators (KPIs) for heavy construction contractors strong ROE signifies a contractor's ability to deliver favorable returns to its investors. The formula for calculating ROE is net income divided by shareholder equity.

• Gross Profit Margin: This metric reflects the percentage of profit retained after deducting the direct costs of producing a project, such as materials and labor. Put simply, a company's gross profit margin is the money it makes after accounting for the cost of doing business. It showcases the contractor's ability to control costs and generate profit from its core construction activities. Gross profit margin is calculated by subtracting the cost of goods sold (COGS) from the net sales and then dividing the result by the net sales (Gross Profit Margin = (Net Sales-COGS)/Net Sales).

• Net Profit Margin: Net profit margin is one of the most important indicators of a company's financial health. This metric reveals how much of each dollar earned is actual profit. Net income is also called the bottom line for a company as it appears at the end of the income statement. It considers all expenses, including overhead and administrative costs, providing a comprehensive view of profitability. Net profit margin is profit minus the price of all other expenses (rent, wages, taxes, etc.) divided by revenue, expressed as a percentage (Net Profit Margin = Net Profit ⁄ Total Revenue x 100).

These financial KPIs are not just indicators of a contractor's financial performance; they are windows into its fiscal resilience.

Lenders, investors, and surety companies scrutinize these metrics to assess the financial soundness of a contractor. A strong financial foundation enables a contractor to secure financing, attract investors, and establish itself as a reliable partner.

Cost Control and Efficiency In heavy construction, where projects often span years and budgets are meticulously calculated, cost control is a cornerstone of success. Effective cost management ensures that projects are completed within budget, reducing financial risks, and ensuring profitability. KPIs related to cost control and efficiency include: • Cost per Square Foot: This metric evaluates the cost of construction per square foot, providing insights into project cost efficiency. By monitoring this KPI, contractors can identify cost disparities and implement corrective measures.

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• Cost of Materials: Heavy construction projects often involve significant material expenses. Tracking the cost of materials helps contractors manage expenses and identify opportunities for cost savings, such as bulk purchases or alternative materials.

• Labor Costs: Labor costs are a substantial part of any construction project. Monitoring labor costs through KPIs allows contractors to assess productivity, allocate resources effectively, and control expenses.

• Cost Variance (CV): This metric measures the difference between the actual cost of a project and the planned budget. It offers real-time feedback on budget adherence, enabling contractors to make timely adjustments and prevent cost overruns.

Effective cost management, as reflected in these KPIs, not only ensures project profitability but also safeguards a contractor's reputation for delivering projects on time and within budget. It is a testament to a contractor's ability to navigate the intricate financial landscape of heavy construction successfully.

Cash Flow Management Positive net cash flow is the lifeblood of any construction business. It signifies that a company is bringing in more cash than it is spending. Conversely, negative net cash flow indicates that the business is spending more cash than it is generating. Cash flow management KPIs, include:

KPI enables contractors to identify bottlenecks and inefficiencies in labor allocation.

• Percentage of Equipment Downtime: Equipment downtime directly impacts project timelines and costs. Monitoring this KPI allows contractors to maintain equipment efficiently and reduce project delays.

• Waste/Recycling per Job: Efficient waste management contributes to cost savings and sustainability. This KPI quantifies waste generation and recycling efforts, supporting environmentally responsible practices.

Operational efficiency KPIs are the building blocks of project success. They enable contractors to maximize resource utilization, reduce downtime, and enhance overall productivity. For heavy construction, where project timelines are critical, operational efficiency is synonymous with project success.

Quality Assurance Delivering a quality product is not just a matter of pride; it's a cornerstone of reputation in the construction industry. Quality assurance KPIs enable contractors to monitor and improve the quality of their work. These metrics include: • Number of Defects: This metric quantifies the number of defects identified in a project. It reflects the contractor's commitment to quality and serves as a basis for improvement.

• Net Cash Flow: This metric measures the money moving through a business during a specific period. It reflects the company's ability to generate cash from its operations.

• Number of Defects Due to Workmanship: This subset of defect tracking specifically focuses on workmanship-related issues, providing insights into skill and craftsmanship.

• Projected Cash Flow: Projected cash flow provides a forward-looking view of money that will enter and leave a business. It helps contractors anticipate cash needs, plan investments, and ensure liquidity.

• Time to Rectify Defects: Efficiently addressing defects is crucial. This KPI measures the time taken to rectify identified defects, ensuring timely resolution.

Effective cash flow management is essential for business continuity. It ensures that a contractor has the necessary funds to cover expenses, pay vendors, and invest in growth opportunities.

Without proper cash flow, even a profitable company can face financial challenges that could jeopardize its operations.

Operational Efficiency Heavy construction involves the orchestration of a multitude of resources, from machinery and manpower to materials and logistics. Operational efficiency is the linchpin that holds these elements together, ensuring projects are executed seamlessly.

Operational efficiency KPIs include: • Average Revenue per Hour Worked: This metric assesses the revenue generated per hour worked. It helps contractors optimize resource allocation and pricing strategies.

• Percentage of Labor Downtime: Labor downtime is a measure of productivity on a construction project. Tracking this

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• Number of Site Inspections Conducted: Regular inspections are a proactive approach to quality control. This metric quantifies the frequency of site inspections.

• Ratio of Inspections Passed: This ratio measures the percentage of inspections that pass without identifying defects. A high ratio indicates a commitment to quality.

• Total Cost of Rework: Rework is a cost-intensive endeavor.

Tracking the total cost of rework allows contractors to assess the financial impact of quality issues.

• Customer Satisfaction: Ultimately, customer satisfaction is the litmus test of quality. Surveys and feedback mechanisms provide insights into how clients perceive the contractor's work.

Quality assurance KPIs serve multiple purposes. They ensure that projects meet or exceed client expectations, building client trust and satisfaction. They also contribute to a contractor's reputation for delivering high-quality work, which can lead to repeat business and referrals.

Safety and Risk Management

• Safety/Incident Rate: This rate quantifies the number of safety incidents or accidents per a certain number of hours worked.

A low rate indicates a commitment to safety.

• Underbillings-to-Working Capital: This ratio assesses the relationship between underbillings and working capital, supporting cash flow management.

• Overbillings-to-Cash: Overbillings can impact cash flow.

Monitoring this KPI ensures contractors maintain liquidity.

• Number of Safety Meetings/Communications: Regular safety meetings and communications ensure that safety remains a priority on the job site.

• Total Job Borrow: Total job borrow quantifies the difference between cash collected and costs incurred on a project. It offers insights into project profitability.

• Number of Accidents per Supplier: This metric provides insights into the safety records of subcontractors and suppliers, helping contractors make informed decisions about partnerships.

• Total Backlog: Total backlog represents the value of projects contracted but not yet completed. It provides a forward-looking view of a contractor's workload.

Safety KPIs not only protect employees and subcontractors but also safeguard a contractor's financial stability. By reducing accidents and safety incidents, contractors can lower insurance premiums, avoid costly legal battles, and maintain a productive workforce.

Employee Engagement Studies such as Gallup’s State of the Global Workforce prove that an engaged workforce is more productive and innovative. KPIs related to employee engagement include: • Worker Satisfaction: Worker satisfaction surveys gauge employee morale and job satisfaction. Happy employees are typically more productive and committed to their work.

• Training Completion Percentage: Tracking the percentage of completed training programs ensures that employees are equipped with the necessary skills and knowledge.

• Turnover Rate: This metric measures the frequency at which employees leave the organization. A high turnover rate can indicate underlying issues with employee engagement and retention.

An engaged workforce contributes to a positive workplace culture and can significantly impact profitability. Retaining skilled employees also reduces recruitment and training costs.

Work-In-Progress (WIP) Analysis Work-In-Progress (WIP) analysis is a crucial aspect of project management in heavy construction. It provides real-time insights into project status, budget adherence, and financial stability. Essential WIP KPIs include: • Contract Gain/Fade: This metric assesses changes in contract value compared to the original estimate. It helps contractors identify potential profit or loss on projects.

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Safety in heavy construction is not just a legal requirement; it's a moral imperative. Safety KPIs not only help reduce insurance and legal costs but also foster a culture of safety within the organization. Important construction safety KPIs include:

• Underbillings-to-Equity: Tracking underbillings in relation to equity provides insights into financial liquidity and budget adherence.

• Total Backlog Gross Profit: This metric assesses the profitability of projects in the backlog, helping contractors prioritize projects for maximum profitability.

WIP analysis is integral to financial management in heavy construction. It offers real-time visibility into project financials, enabling contractors to make informed decisions, manage budgets effectively, and maintain financial stability throughout the project lifecycle.

CFMA Benchmarks The Construction Financial Management Association (CFMA) conducts an annual survey that allows contractors to compare their financial performance to others in the industry. Contractors can purchase CFMA's Financial Benchmarker to compare their financial performance against similar company and industry data. Benchmarking is an essential practice that helps contractors make strategic decisions, improve productivity, reduce costs, and increase profits. It allows contractors to identify areas for improvement and implement best practices based on how their company is performing compared to similar companies in their geographic region.

Leading vs. Lagging KPIs Understanding the distinction between leading and lagging KPIs is crucial. Leading KPIs predict where a contractor is likely to go.

They are proactive indicators that help identify potential issues and opportunities. For example, labor productivity is a leading indicator of job profitability. By monitoring labor productivity metrics, contractors can take proactive steps to improve efficiency and project profitability.

On the other hand, lagging KPIs measure what has already been achieved. They provide historical insights into a contractor's performance. Examples of lagging KPIs include Net Profit, Gross Profit, Current Ratio, and Accounts Receivable (AR) turnover.

These metrics offer a retrospective view of financial performance and are essential for assessing past achievements.

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Monitoring KPIs Having explored various categories of KPIs and their significance, it's evident that these metrics are indispensable for heavy construction contractors. Here's why: • Strategic Decision-Making: KPIs provide data-driven insights that inform strategic decisions. Whether it's optimizing resource allocation, controlling costs, or prioritizing projects, KPIs offer a foundation for informed choices.

• Financial Health: Robust financial KPIs ensure that a contractor's financial health is sound. This, in turn, enhances the contractor's ability to secure financing, attract investors, and establish trust with stakeholders.

• Financial Stability: WIP analysis KPIs provide real-time visibility into project financials, enabling contractors to manage budgets effectively and maintain financial stability.

• Benchmarking: Industry benchmarks and peer comparisons allow contractors to identify areas for improvement and implement best practices.

• Leading and Lagging Indicators: Understanding leading and lagging KPIs equips contractors with the tools to predict future performance and assess historical achievements.

• Operational Efficiency: Operational KPIs enable contractors to streamline processes, minimize downtime, and enhance overall productivity. These efficiencies directly impact project timelines and profitability.

In conclusion, KPIs are not mere numbers on a spreadsheet; they are the compass that guides heavy construction contractors toward success. They empower contractors to navigate the intricate landscape of construction, make informed decisions, and continuously improve. In an industry where precision, reliability, and financial prudence are paramount, KPIs are the unwavering sentinels that ensure each project is not just completed but completed with distinction and unwavering financial strength.

• Quality Assurance: Quality-focused KPIs ensure that projects meet or exceed client expectations. This fosters client trust, promotes repeat business, and enhances a contractor's reputation.

As heavy construction contractors strive for excellence, KPIs stand as their most trusted allies, illuminating the path forward and ensuring that every endeavor is met with success, profitability, and lasting impact.

• Safety and Risk Management: Safety KPIs contribute to a safer work environment, reducing accidents, insurance costs, and legal risks. They also support a productive workforce.

About the Author . . . Salvatore Schibell, CPA, CFP®, CGMA, MS Taxation, MBA, is the tax partner at Lawson, Rescinio, Schibell & Associates, P.C. He is a profit improvement expert who focuses on helping construction contractors make more money. Sal can be contacted at 732-539-7328 or salschibell@lrscpa.com.

• Employee Engagement: Employee-focused KPIs help contractors maintain an engaged workforce, which can significantly impact profitability and productivity and reduce turnover.

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By: Dave Rible, executive director, utca of nj

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nstead of delivering emissions reductions to mitigate the impacts of climate change, the rush towards electrification has brought bankruptcy and bailouts. Across the country, developers and manufacturers are struggling to keep pace with lofty timelines; instead committing to promises and projects that later end in disappointment and litigation.

It’s clear that the current pace to adopt clean energy in New Jersey and beyond is incompatible with today’s infrastructure and economic realities. While the impacts of climate change pose a real threat that should be addressed, states need to adopt a real approach to electrification — or face unintended consequences.

The growing electric vehicle industry is becoming increasingly familiar with these consequences.

Just over two years after President Biden lauded electric bus company Proterra’s manufacturing initiatives, Proterra filed for Chapter 11 reorganization in federal court in Delaware. The California-based company has existed for nearly two decades and recently celebrated electric vehicle battery production in South Carolina, as well as the opening of North America’s largest electric vehicle bus charging center.

In Massachusetts, offshore wind developer Avangrid is paying $48 million to terminate its Commonwealth Wind project — approved by the Department of Public Utilities just months ago.

Similar agreements are forthcoming in Massachusetts, with Shell and Ocean Winds North America expected to reach an even higher termination payment. Just two days after Avangrid announced its settlement, Rhode Island’s largest utility announced it was scrapping plans for a power purchase agreement with Ørsted and Eversource; rejecting the only bid received in its October 2022 Request for Proposals.

And these problems are all too familiar in New Jersey. While Governor Murphy has hailed New Jersey as a leader in the country’s offshore wind development and aims to transition the state to 100% clean energy by 2035, making such statements a reality has faced delays, lawsuits and funding shortfalls.

The most recent development in New Jersey’s offshore wind saga comes after a legislative resuscitation of Ørsted’s Ocean Wind I project, when Governor Murphy signed a bill allowing Danish developer Ørsted to keep new federal tax incentives at the expense of New Jersey ratepayers.

Despite what seemed like major milestones in a nationwide electric vehicle adoption effort, Proterra ultimately was unable to overcome “market and macroeconomic headwinds.” Unfortunately Proterra is not alone in their financial struggles.

New Jersey’s second major offshore wind project is now also looking to state leaders for a similar government-funded break.

Shortly after Ørsted’s project approval, Atlantic Shores issued a statement suggesting their previously approved project is in jeopardy without “immediate action” and further financial aid.

Just weeks before Proterra’s bankruptcy filing, EV startup Lordstown Motors also filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Production of Lordstown’s Endurance electric truck faced a myriad of development obstacles since the company went public in 2020, including economic troubles requiring a $100+ million investment by Taiwanese manufacturer Foxconn. Even with the intervention, Lordstown was forced to halt Endurance production.

Lawmakers are also calling the transparency of the state’s clean energy approach into question, urging the Board of Public Utilities to do more to address unanswered questions and concerns surrounding the impacts of offshore wind on ratepayers and tourism. UTCA and our members stand ready to provide the support to deliver energy from offshore wind to New Jersey.

Until then, we hope that New Jersey’s approach to this growing industry is well thought out.

As New Jersey looks to incentivize light-duty electric vehicle sales with a forthcoming administrative rule, we hope that electric vehicle adoption in the state does not subject manufacturers to a similar fate.

While the fate, timeline and cost of New Jersey’s offshore wind projects seems to hang in the balance, one thing remains clear — ambitions are outpacing economic reality. New Jersey continues to propose clean energy initiatives that fail to account for industry capabilities.

The struggles of adapting to electrification are not limited to onshore industries. Across the Northeast, offshore energy goals are encountering hard financial realities.

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the cost of green energy goals

The unforeseen consequences of this rush to electrification are not exclusive to any industry, business or entity. Without an approach that most effectively balances our clean energy needs with currently available realities, we may all pay the price.

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By: patrick dicerbo, wealth management advisor/northwestern mutual wealth management company

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common refrain today is that people have concerns about the safety of their money and the returns on their money. A couple of bank failures recently have caused people to think twice about the protection offered by the Federal Deposit Insurance Corporation (FDIC) backed by the Government. It affords us comfort but has limitations. As is somewhat common knowledge, the FDIC covers each individual depositor in each financial institution covered by FDIC for up to $250,000 for each ownership category. If a joint account, each of the depositors has the same coverage yielding a total of $500,000 of protection. For many people that means spreading their money around to multiple institutions and then managing those accounts to receive expanded protection.

Northwestern Mutual has created a powerful cash management solution that can deliver up to $4 million of FDIC insurance coverage per depositor or $8 million on joint accounts. Through its relationships with a large number of highly rated banks, Northwestern Mutual has created extended FDIC protection through its FDIC Insured Deposit Program that does the leg work for the depositor. This program automatically transfers uninvested cash balances held in a Northwestern Mutual investment account into an interest-bearing bank account each day. The banks involved in the program go through a continuous vetting process conducted through Total Bank Solutions (“TBS”) to ensure that they continue to meet acceptable risk standards.

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a modicum of certainty in an uncertain world: safe harbors for your cash

This is an opportunity to enhance safety, eliminate complexity, and earn competitive yields. These are topics in the news today and on the minds of many Americans.

Please feel free to contact the author for more information.

About The Author . . . Patrick DiCerbo is a Wealth Management Advisor with Northwestern Mutual. He has been working with Northwestern Mutual since 1988. Pat has worked extensively with business owners and families in the construction industry and related industries for over 25 years. He provides the design, sale and service of plans that are used to increase liquidity, accumulate wealth, transfer wealth, and minimize taxes. He can be reached at 518-690-7959 or pat. dicerbo@nm.com Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) and its subsidiaries, including Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), a registered investment adviser, broker-dealer, and member of FINRA and SIPC. NM and its subsidiaries are in Milwaukee, WI. Patrick DiCerbo is an Insurance Agent of NM. Investment brokerage services provided as a Registered Representative of NMIS. CA License: 0B14377, NPN: 689193 Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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By: adam puharic, puharic and associates, inc.

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hether you are a contractor, an engineer, or an environmental consultant, if you have been in business for any reasonable amount of time, you’ve encountered contract requirements looking for pollution insurance coverage. As you fumble through your insurance paperwork, you come across a certificate evidencing “Pollution Liability,” so you move on to the next business challenge.

But stop right there. Do you have the correct pollution insurance coverage? Do you understand what the policy is attempting to mitigate? Do you know the difference in coverage types? This article will take us on a brief tour of two major coverage forms, and outline what they cover and when each would apply in a contract situation.

The two pollution coverage forms addressed here will be pollution coverage provided by Architects/Engineers and Consultant Professional Liability (Errors and Omissions) and Contractors’ Pollution Liability. Other Pollution form types exist, but many contractual obligations will be met with these two types.

Hold on; what exactly is pollution from an insurance perspective?

A definition found in popular insurance carrier forms defines pollutants as: “any solid, liquid, gaseous, thermal, biological or radioactive substance, material or matter, irritant or contaminant including smoke, vapors, soot, silt, sedimentation, fumes, acids, alkalis, chemicals, and waste.” And very important: This pollutant can be spread either accidentally or as the result of a plan, design, or report error. I tend to explain this to clients as either the unintentional result of operations or the unforeseen result of an intentional design or plan.

So now the coverage forms. Contractors’ Pollution Liability is meant to insure against unintentional pollution acts that result from business operations. For example, a common insuring agreement explains: We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury",” property damage" or "cleanup costs" caused by a "pollution condition" to which this insurance applies, provided: a. The "pollution condition" arises out of "your work" performed during the policy period, except for a "pollution condition" arising out of the "completed operations" of "your work"; and b. The "bodily injury" or "property damage" occurs, or the "cleanup costs" are incurred, during the policy period.

A simple example to help us visualize this coverage: A painter walks through a job site, and accidentally kicks over a can of gas-

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important differences between pollution insurance products oline into a nearby stream. This is accidental, a known pollutant, and results from business operations. Contractors’ Pollution Liability is commonly purchased on an occurrence form basis, meaning you insure a 12-month period and any events that occur during that period.

The second policy type is Professional Liability, also known as Errors and Omissions. This coverage type is designed to pay claims resulting from professional services that create pollution events.

Some types of professional services contemplated include: environmental remediation designs, stormwater run-off plans, landscape architect plans, land evaluations, etc. The key to this coverage is that the pollution, though not intended, results from a plan or design that fails to account for one factor or another. The result is that the pollutant spreads or is not remediated and removed at an adequate pace.

This coverage type is commonly insured on a claims-made basis, which means a policy period will defend claims brought forward during the policy period, even if the event occurred in the past, as long as there was no prior knowledge of this event. For this Professional Liability policy, a retroactive date is an important policy concept that defines the past date that claims can be made back to.

So how do these significant differences impact your business and the contractual requirement you are attempting to satisfy? If your role on the job is a form of construction trade, such as electrician, plumber, framer, or drywall installation – the Contractor’s Pollution Liability policy form is likely the relevant coverage type. If your role is designer, environmental scientist, geotechnical, architectural, or engineer in nature, then both policy forms might come into play.

The key is to work with your licensed insurance professional and make sure they are well-versed in the contract requirements and have a thorough understanding of the major policy form differences. Not all pollution insurance is equal!

About The Author . . . Puharic and Associates, Inc. is a professional risk management and insurance firm in Manasquan NJ. Puharic focuses on concierge-style risk management to provide 360-degree protection for business owners by combining all insurance coverages under one roof. By creating a 3-dimensional risk profile of the business owners’ risks, from cyber to employee benefits to personal risks, Puharic and Associates helps business owners grow by creating a step-by-step plan for their protection that evolves with them. For more information, please visit www.puharicassociates.com

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