PRESIDENTIAL ADDRESS

First and foremost, on behalf of IFCA, I would like to thank each of our Negotiation Teams for all of their efforts with respect to the 2009 Negotiations. Our teams spent months preparing for the collective bargaining process taking substantial time away from their respective businesses. I don’t think anyone realizes the level of commitment it takes to represent the association during this process. At IFCA, and I know I speak for all members, we are grateful to each representative for their dedication and hard work.  We all knew that the Pension Funds needed monetary help and that it was difficult to determine the appropriate allocation to the funds while considering the current economic climate. For additional details related to all of our negotiations, please refer to page 2.

On May 28, Kim & Tom Clerkin, Gary Blaszczyk and myself were invited, as guests of the GBCA, to attend a meeting of the National Alliance at the carpenters’ local training facility. Doug McCarron, President of the carpenters, along with the leader of the Operating Engineers, discussed the future of union construction as well as the significant changes each organization has made to increase internal efficiencies. After the opening remarks, a question/answer/awareness session took place between the union leaders and contractors. I’d like to thank both union groups for meeting with the Philadelphia contractors to listen to our industry concerns.

Now that winter is over and we’re heading into the summer months, I am hopeful that union construction will rebound.

Respectfully submitted by Harry Skelton, Talon Construction Co. Inc.

Disclaimer: While this newsletter is designed to provide accurate and authoritative information on the subjects covered, IFCA is not engaged in rendering legal, accounting, other professional or technical advice. IFCA cannot warrant the accuracy of the information contained in this newsletter and disclaims any and all liability which may result from publication or of reliance on the information provided herein. If legal advice or other expert assistance is required, the services of a competent, professional person should be sought.

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UNION UPDATE

METROPOLITAN REGIONAL COUNCIL

Edward Coryell, Executive Secretary-Treasurer/Business Manager

IFCA signed a two-year contract extension with District Council 21. For the first year, we agreed to a $1.20 increase which was placed into the Pension and Health and Welfare Funds; for the second year we agreed to a $1.25 increase. The Memorandum of Agreement contains modified language under Article 25 regarding a pre-job meeting, foreman and shift work as well as a change to Article 16 related to the Apprentice Training Fund. The language contained in Article 25.12.6 says that you are required to send in a Job Start Form. Please note that if you do not send it in, the union could place a steward on your job (this form is posted on IFCA’s web site under Labor Relations/IUPAT).  Please join IFCA to thank our Negotiation Team: Tom Clerkin, Mark Duffy, Tom Long & Steve Ruggieri.

IFCA actively meets with DC 21’s Craft and Safety Committees. If any member wishes to participate with IFCA on either of these committees, please contact the association office.

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INTERNATIONAL UNION OF PAINTERS & ALLIED TRADES DISTRICT COUNCIL 21 ("DC 21")

Harry Williams, Business Manager/Secretary Treasurer

On February 12, the Training Center received GREAT news from the COE—DC 21 had been granted FULL ACCREDITATION! DC 21 does not have to be re-affirmed for six years—the maximum allowable amount. According to the report sent to IFCA, DC 21 is “officially” the first and only Stand Alone Building Trades Apprenticeship Program to receive Third Party Accreditation from any Department of Education provider! This opened door will make possible an Associates Degree Granting Facility, Title IV Funding to students, new grant opportunities and much more—GREAT JOB!!!

Please note: There will NOT be a Graduation this year.

IFCA’s Collective Bargaining Agreement expires April 30, 2009. Our contractor members have met to discuss negotiations and we will look to schedule negotiations with our union partners some time this month.

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LABORERS' DISTRICT COUNCIL ("LDC")

Ryan Boyer, Business Manager

IFCA signed a one-year contract extension with the LDC. There was a $1.25 increase...most of which went into the Pension and Health and Welfare Funds. Please join IFCA to thank our Negotiation Team: Gary Blaszczyk, Frank Lutter and Chris McElwee. LDC continues to talk about how to attract more work in the counties and is open to discuss ideas with any of their signatory partners. 

IFCA is available to assist any contractor member with respect to labor relations-contact Kim Clerkin, the Executive Director (610-225-1050).

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JUST THE FACTS

Schedule re: BOD/General Membership meetings:

• June, 2009: There will NOT be a meeting of the General Membership.
• July, 2009: There will NOT be a meeting of the BOD/General Membership.
• August: There will be a BOD and ANNUAL General Membership meeting. The membership will be voting on the Slate of Officers and Board of Directors for 2009-2011 as well as revised Bylaws.

EDUCATION:

• OSHA TRAINING: OSHA training is available to our members through several sources — the Mid-Atlantic Construction Safety Council, the JAC or District Council 21. For more details, contact the association office.
• COLLEGE COURSES: If you are interested in taking construction-related courses, tuition reimbursement is available to any field or office personnel. In order to be eligible you must work for an IFCA member in good standing or industry contributor and you must send in your Tuition Reimbursement Application to the IFCA office in accordance with our Guidelines. For information about Drexel, contact the Carpenters JAC @ 215-824-2300. For information regarding the community colleges, contact the Consortium @ 215-218-3886. Any accredited university qualifies too as long as you register for construction-related courses and adhere to IFCA’s guidelines.
• COMPUTER CLASSES: The association can arrange for you and your office personnel to take computer classes @ DC 21 or the JAC. Scheduling is flexible — we request a minimum of 8 participants. Contact IFCA for more details.
  
• TRAINING: Please keep IFCA in mind for your training needs. Anything related to construction that isn’t offered by the union can be investigated by IFCA...just give us a call.

Membership:
Please welcome the following new members:
           —A & J Builders, Inc.
           —Olde Town Construction, Inc.
           —TE Construction Services, LLC
All membership inquiries should be directed to the association’s Executive Director, Kim Clerkin (610-225-1050).

Golf Outing:
Our Golf Outing is scheduled for August 31 @ Cedarbrook Country Club. This event is by invitation...look for your “invite” in July.  We hope our members and industry friends can join IFCA for another great outing!!!

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HEALTH & SAFETY SEGMENT

Crane Safety - A perspective

Many cities and some States have rushed to enact stricter standards for the erection, use and dismantling of tower cranes. In some cases, licensed professionals are required to be involved in these processes. The reaction to the tragic collapses in New York City and Atlanta among other places is understandable; public outcry prompted action. Some factors contributing to the incidents included not having adequate plans in place, not following the plans when there were, lack of training and corruption.

OSHA chartered a consensus committee in June, 2003 to develop a new crane standard using the same process used for revising the rules for structural steel erection. The committee for crane standards completed their work in July 2004.It appears that new standard may finally be rolled out by end of 2009. When that happens, OSHA’s new rules will have to be integrated with all the local new standards put in place in any given area.

Consider there are about 8,000 crane “accidents” in any given year; now combine that with the fact that most of them do not involve tower cranes. Many of the machines used to hoist materials fall under the definition and rules relating to cranes.

Just as we found with steel erection, a consensus standard will not answer all the questions but it will greatly improve the tools we have to work with now. And hopefully the reactive standards to a very small segment of the crane community will settle down and allow the new OSHA standards to start to take effect.

Keep in mind that the manufacturer of any machine or piece of equipment produces an “Operation Manual” to be used by trained operators and mechanics covering the safety, maintenance and operating requirements; this process is part of OSHA regulations. But the process requires that “professionals” and “craftsmen” understand and follow the rules and that the business side of the construction industry is ethical and concerned about its employees and the Community.

The Mid-Atlantic Construction Safety Council is part of the Mid-Atlantic OSHA Training Institute which offers OSHA Outreach training in Safety and Health for OSHA's Region III. For more information please visit our website at www.oshamidatlantic.org or call 1-(866) 949-1961.

By John Young, Skanska USA Building, Inc. and Member of Mid-Atlantic Construction Safety Council

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ROBIN KRAMER & GREEN

How to motivate employees in tough times

Charles Dickens once started a novel with the following words: "It was the best of times; it was the worst of times... it was the spring of hope; it was the winter of despair." He could have been describing today's economy.

Small firms, especially, struggle with changing market conditions. How about the local business that manufactures airplane parts? In an upbeat economy, inventory may be flying off the shelves. But if OPEC decides to raise oil prices or a significant segment of the public decides to avoid air travel, the firm's highly skilled machinists may find themselves in the unemployment line. Or take a small construction firm. Sales revenues can be influenced by a wide variety of conditions, including lumber prices, interest rates, and gyrations in the global economy.

Uncertain market conditions can affect the productivity of even the most stalwart and loyal employees. Workers who face indefinite futures may find it difficult to stay focused. A major challenge for managers, throughout the ups and downs of business cycles, is motivating employees and keeping them on track.

How do you ensure that your workforce remains productive and positive during these volatile times? It's a tall order — but not an impossible one. Here are three suggestions.

• Keep it real. Denying the problem won't make it go away. If your company is losing sales and your workers may face layoffs, don't pretend everything's just fine. Open the channels of communication even wider. Solicit solutions from your staff. Employees have a vested interest in keeping the company afloat. They'll often provide some of your best advice.
• Shift the focus. Pessimism breeds pessimism. To counter negativity, discuss new opportunities. Analyze businesses in your industry that are showing a profit, even in a down market. Shine the spotlight on them; then go and do likewise.
• Show appreciation. No one likes insincere kudos. But when the work or attitude of an employee deserves honest praise, don't pass up the opportunity. Let your workers know they're making a difference. Even if your firm can't offer cash incentives right now, let your best employees know that their efforts haven't gone unnoticed. If you can honestly do so, hold out hope for future rewards as market conditions improve.

To some of your staff, today's volatile market may seem like "the worst of times." Keep them motivated now, and "the best of times" may be just ahead.

Don’t forget ... IFCA offers members LIMITED reimbursement for the creation of a Web Site.

Robin Kramer & Green, LLP
425 Commerce Dr.
Ft. Washington, PA

215-641-8300 (O)
215-641-8335 (F)
info@rkgcpa.com

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KIM Says...

The Finish First Awards

Save the “everyone’s a winner” speech for t-ball, keep your honorable mentions, don’t waste our time with bronze medals...on April 24 we celebrated ONE...just those who FINISHED FIRST!!!

The 2009 Finish First Recipients

• Acoustical Ceiling: Sloan & Company (Temple University—Johnson Hardwick Dining Hall)
  
• Drywall Finishing: Blasz Construction, LLC (Tredyffrin Public Library)
  
• Historic Renovation: Ceilings Inc. (Episcopal Mansion)
  
• Millwork: Allied Interiors (Radnor Township Municipal Bldg.)
  
• $100,000 or less: Associated Specialty Contracting (Retail Space)
  
• Innovative Use of Materials: Ceilings Inc. (Terrain @ Styer’s)
  
• 2009 Member of Distinction: Raymond Shoemaker
  
• Lafarge’s Project of the Year: BCT Walls & Ceilings, Inc.
  
• Kamco Building Supply’s Weekend Getaway: All Walls & Ceilings, Inc.

IFCA is grateful to the following 2009 Sponsors—thank-you!!!

• Title Sponsor—Lafarge
  
• Presenting Sponsors—Metropolitan Regional Council of Philadelphia
• Carpenters & Vicinity and International Union of Painters & Allied Trades
• District Council 21
  
• Awards Sponsor—Marjam Supply Company
  
• Centerpiece Sponsor—USG
  
• Weekend Getaway Sponsor—Kamco Building Supply
  
• Band Sponsor—Painters & Allied Trades LMCI
  
• Invitations Sponsor—Steven Kempf Company (The Kempf Company)
  
• Contributing Sponsors—Armstrong, Certainteed Ceilings, George F. Kempf
• Supply Co., National Gypsum, Specialty Products & Insulation Co., and Stevens & Lee

The 2009 Member Participants
All Walls & Ceilings, Inc.; Allied Interiors; Associated Specialty Contracting; BCT Walls & Ceilings, Inc.; Blasz Construction, LLC; Ceilings Inc.; Fastrack Construction; Heartwood Building Group; Landco Inc.; Frank T. Lutter, Inc.; Sloan & Company and T.N.T. Construction

Beasley Reece was our Master of Ceremonies and did a great job to keep the program on track!!! IFCA’s President, Harry Skelton, spoke to the group as did AWCI’s representative/BOD member, Mike Weber. Thanks to the judges...Charles Brock, Steve Freeman, Jim McGuckin and Chuck Murtha. I will be working with our Finish First Awards Committee shortly to re-design next year’s program...the tentative date for 2010 is April 23.

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LEGAL NOTES FROM STEVENS AND LEE

SURETY BONDS: ISSUES AND ANSWERS

SURETY BONDS: ISSUES AND ANSWERS
Virtually all of the public construction work in America is accomplished by private sector firms. This work generally is awarded to the lowest responsive bidder through the open competitive sealed bid system. Surety bonds play a critical role in making the system work. More often one or more bonds are required, namely a Bid Bond(1); a Performance Bond(2); and/or a Payment Bond(3).
     (1) The Bid Bond is intended to keep frivolous bidders out of the bidding process by assuring that the successful bidder will enter into the contract and provide the required performance and payment bonds. If the lowest bidder fails to honor these commitments, the owner is protected, up to the amount of the bid bond, usually for the difference between the low bid and the next higher responsive hid.
     (2) The Performance Bond secures the contractor’s promise to perform the contract in accordance with its terms and conditions, at the agreed upon price, and within the time allowed.
     (3) The Payment Bond protects certain laborers, material suppliers and subcontractors against non-payment. Since mechanic’s liens cannot be placed against public property, the payment bond may be the only protection these claimants have if they are not paid, for the goods and services they provide to the project.

Of the three (3)†Bonds, the use of the American Institute of Architect’s A312†Payment Bond Form has now become problematic. This is based on a recent series of court decisions in Maryland, Virginia and Florida that have held that a Surety’s failure to deny a claim within 45†days as required by ∂6.1 of the bond form constituted a waiver of the Surety’s defenses to the claim.

Several major Sureties are now requiring modifications to ∂6 before writing payment bonds using the A312 form. The AIA has prepared an amendment which contains two significant modifications. First, it lengthens the surety’s time to respond to a bond claim from 45†days to 60†days. Second, it adds a new ∂6.3 providing that:

The Surety’s failure to discharge its obligations under this Section†6 shall not be deemed to constitute a waiver of defenses the Surety or Contractor may have or acquire as to a claim.

These decisions also will affect other project participants. Owners and architects should recognize that it will be difficult for contractors to obtain bonds using an unmodified A312†form and should account for that fact when putting contracts out to bid. If bid requests require use of the A312†form, contractors and subcontractors should qualify their bids to provide for modification of the form or use of an alternative form.

Moreover, in many states, Sureties are subject to fines and penalties for unfair or bad faith claims-handling practices. If the Surety does not have the information necessary to support a denial, a denial may expose it to liability under those laws. Failure to provide this information to the Surety also may expose bond Principal and the individual owners to liability. Sureties universally require bond principals to sign indemnity agreements under their spouses to sign similar indemnity agreements. If the Surety is not able to raise a defense because the bond Principal has not provided information in a timely manner, the Surety may be able to recover its losses from the bond Principal and its individual owners. Thus, even though a contractor may have had a good defense to the underlying claim, both it and its individual owners could become liable to its Surety on the claim.

Bond claimants will no doubt keep these decisions in mind. It may not be practical for Sureties to identify all defenses in response to a claim within 45†days. This provides claimants with a huge advantage if they properly present their claim.

Hence, it is our recommendation that before accepting to provide a Bond using Form†A312, you check with your insurance agent/broker to discuss the aforementioned modification and/or whether an alternative bond form may be available.

Submitted by Michael G. Tierce, Esquire (215-751-2865/mgt@stevenslee.com

Chris McElwee, an IFCA BOD member, is the founder of Michael’s Way. The mission of Michael’s Way is to help the families of children with cancer to cope with the extraordinary expenses that come about as a direct result of the child’s illness. Michael’s Way is celebrating 12 years!!! Their annual Golf Outing is scheduled for September 14 @ Stonewall Country Club. For details about the upcoming event and to learn more about contributing to Michael’s Way, take a look at their web site: www.michaelsway.org.

“Every accomplishment starts with the decision to try! “

Submitted by Michael G. Tierce, Esquire (215-751-2865
jmgt@stevenslee.com

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LOBBYING EFFORTS

Wolf Block .... submitted by Brian Preski, Esquire
1650 Arch St., 22nd Flr., Phila., PA 19103 (215) 977-2000 • e-mail: bpreski@wolfblock.com

As we enter June, we enter the true budget season and the fits and starts that come along with this time of year. State tax revenues for April continue to be down, this follows upon Pennsylvania collecting only $3.9 billion in revenue in March - that’s $334.6 million, or 7.9 percent less than anticipated. Counting April’s numbers year-to-date General Fund collections total $18.7 billion and are $1.6 billion and remain level at 7.9 percent below estimate.

Staffs of the House and Senate Appropriations Committee project a $3 to $3.2 billion shortfall for FY 2008-09.  This is not the whole story, however, as this number will grow because of a structural deficit for the coming fiscal years. Federal stimulus dollars and the infusion of other one-time monies can be used to balance the budget provided that either spending cuts or tax increases are joined in this effort.  On a happier note, there clearly currently doesn’t appear to be any appetite for any broad-based tax increases (personal income, business, sales, etc.). Representative Evans from Philadelphia continues to bring them up in the press, but he is receiving a very cold reception in the hallways of the Capitol.

We still await announcements from the Rendell Administration as to how Federal Stimulus dollars will be awarded for projects. To date, he has disclosed individual programs, like his Solar Energy initiative, but as far as the programs available for larger awards have not been announced. The State’s Recovery website can be found at www.recover.state.pa.us for more information. Indeed, the final meeting for the public to offer input on how Pennsylvania can best use federal American Recovery and Reinvestment Act funds to expand access to broadband Internet service will be held on Wednesday, June 3, in Philadelphia. Among the largest projects under discussion by state agencies are Department of Corrections plans for four new correctional facilities and major construction projects on the campuses of the State System of Higher Education.

On May 5, in a bi-partisan vote of 126-72, the State House passed HB 400 (Lentz, D-Delaware). The legislation currently awaits action in Senate Committee.  As we have previously discussed, this legislation penalizes companies in the construction industry who intentionally misclassify workers as independent contractors to avoid paying taxes, insurance costs and payroll deductions or to hire illegals. Indeed, as a direct result of the testimony provided to the House Labor Committee by our own Kim Clerkin, significant changes to include a safe harbor and a reduction of penalties for unknowing violations were added to strengthen the legislation. Kim’s testimony made clear that unless this legislation was passed IFCA members were at a competitive disadvantage due to higher workers’ compensation premiums, and the simple fact that all of those competitively bidding on a job were not playing on a level field. Talk in the Senate is that this legislation may be subject to additional amendment. We will keep you informed.

Submitted by Brian J. Preski, Esquire (215-560-1660/bpreski@bowmanltd.com)

NOTE: If there is legislation that you’d like to see our Legislative Committee work on, please contact Kim Clerkin @ IFCA (610-225-1050) ... together we can make a difference for our union construction industry!!!

For information about membership, please contact the IFCA office @ 610-225-1050

CALENDAR

SAVE THE DATE: Annual Golf Outing — August 31 (this is a new date)!!!

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IFCA

Kimberly A. Clerkin, Executive Director
Valley Forge Office Center
530 E. Swedesford Rd., Ste. 106
Wayne, PA 19087
Phone: 610-225-1050
Fax: 610-225-1052
Email: kim@ifcassociation.com

We're on the web at www.ifcaassociation.com

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