PRESIDENTIAL ADDRESS

Here we are again, approaching the end of what has been a pretty good year for our industry and looking forward to the start of the New Year. This coming year, like most years, will be a time of opportunities and challenges.

The outlook for work still appears very promising, with the availability of manpower and supplies also looking good. However, one of the biggest challenges we all will be facing is the continual shrinking of our Union market share.

We all see that the Philadelphia area has been flourishing, and yet at the same time, over the last few years, the Union market in the surrounding counties has been shrinking. The open shops that, a few years ago were only knocking on doors in the counties, have now not only opened them but have walked through and have virtually slammed them shut in many cases. We can’t allow this to happen in the city. We must wake up and do something about it now. Although efforts have been taken to slow it down with the “Pin Pointing” and “Special Concessions” programs, more must be done. We must continually strive to come up with additional innovative ideas.

We ask you to call upon your political and Union contacts in an effort to help us fight and reverse this trend. Remember, this business is not only our future, but it is also the future of your children’s and grandchildren’s.

On a final note, in the past few months we have lost two people that were very instrumental in the development of our organization. Jim Stoneback and Ray Cannon spent countless hours over the years working on behalf of the association. We owe them and their families a great deal of THANKS for their unselfish dedication. To say the least, their loss will be felt by all.

Hope you have a great Holiday and a happy, healthy and prosperous New Year.

—Tony Iannucci, President of IFCA, Aimm Philadelphia Installations, Inc. (856-546-1212)

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WHAT'S NEWS WITH THE UNIONS?

METROPOLITAN REGIONAL COUNCIL

• The carpenters just completed their new building which provides them with 128,000 square feet of training space over 5 acres. It gives the carpenters lots of upgraded training space as well as ample parking. To start with, there are 2 new classrooms, the training area for the floor layers has tripled and there’s an increase in the size of millwrights and cabinet classes. We’ve got a 5 ton/10 ton bridge crane, which will be used by millwrights for their Qualification Program. Also, the bridge crane can be used for rigging for the carpenters and dock builders. There’s a spot outside for training in layout and concrete work. In keeping up with the 21st Century, we’ve got a 35 station computer lab with state-of-the-art equipment. All of the JAC events can be held in the 200 person auditorium which has perfect acoustics. This new facility is fabulous and the space is well appointed. Training is what makes our union contractors the BEST choice!!!
  
  
• Our first negotiation meeting with the carpenters occurred on 11/3. We ask that each employer review the current agreement to see how we can improve upon it. Please submit your ideas to IFCA by e-mail or by fax by 12/29/05 — we want to hear from you — we need your input!
  
  
• The Productivity Committee/foremen meeting took place on 11/10. The second Survey revealed areas for improvement with regard to curriculum and how to better utilize apprentices. We’ll let you know how we make out at the next meeting.

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

• Chuck Murtha, DC 21’s Taping Instructor, invited IFCA and industry representatives to their training facility to attend a Craft Committee meeting. The Agenda covered the current state of the Apprenticeship Program, the new building, Journeymen Upgrading, Apprentice Recruitment and employer concerns. DC 21 plans to launch a newsletter which will produced internally making it a cost-effective way to communicate with members and contractors. The tour of the new building was impressive — look for photographs of it in our next publication.
  
  
• The IUPAT is ahead of the game when it comes to technology! DC 21 is offering an OSHA 30 Class (on-line) to any journeyperson! You need to contact Chuck Murtha to set up the introduction to the class, after that, the journeyperson does all of the classroom work AT HOME!!! You have 1 month to complete the course. Once you finish, DC 21 will administer the final test at their facility. This is a GREAT training tool. Please share it with your workforce.
  
  
• All of the trade associations met with Harry Williams, the Business Manager/Secretary Treasurer for DC 21, to discuss a Drug & Alcohol Policy as well as Mandatory Training. IFCA believes that both of these topics are important — if an IFCA member wishes to discuss either of them with one of our committee representatives, please contact the association office.
  

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LABORERS' DISTRICT COUNCIL ("LDC")

• Wade Stevens will meet with any IFCA contractor to discuss union work in the counties. Please contact the association office if you wish to schedule a meeting with him.
  
  
• PLEASE NOTE our agreement expires on April 30, 2006. IFCA’s representatives are Gary Blaszczyk, Frank Lutter & Chris McElwee. As usual, contact US with your industry concerns.

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GET THE SCOOP

Industry Golf Outing

September 12th was the perfect day for our annual event! Our Beat the Celebrity was William Thomas, former Philadelphia Eagle. We hope you enjoyed the IFCA gift — a Cutter & Buck golf shirt. Let’s THANK Kerry Mattern & Cedarbrook for providing us with another below “par” experience! This year’s winners were:

First Place: Peter Bradley/Ron Martin/Tom Kueny/Bob Kempf (64); Second Place: Tom Clerkin/Geoff Furtaw/Glenn Reilly/Jack Miller (64); Third Place: Jim Vail/Rober Angeloni/Frank Maimone/Jim Wollner (66); Fourth Place: Mike Tierce/Paul Lewis/Jim Garcia/Doug Tocco (67); Fifth Place: Bernie Torda/Joe Mormello/Dave Hastings/Charlie Dougherty (67); Sixth Place: Frank Lutter/Craig Melogrando/Jim Kowinowski/Tucker Lownes (68); Seventh Place: Gary Blaszczyk/Frank Capecci/Roy Link/Key Yakopcic (68). Congratulation to ALL winners. The only skilled prize worth mentioning was “shortest drive” which was a tie between Gary Blaszczyk and Harry Skelton!

Thanks to the following regular sponsors: Armstrong World Industries; BPB America; Bell Supply; Keith Bush Associates; Ciesco Truss Division; Clark Steel Framing; Grabber Const. Products; Kamco Building Supply; Kass of Pennsylvania; Geo. F. Kempf Supply; Steven Kempf Company; Marino/Ware; Marjam Supply Company; Modern Fasteners, Inc.; National Gypsum Company; S&S Resource; Stevens & Lee; USG; Metropolitan Regional of Carpenters of Philadelphia; I.U.P.A.T. District Council 21; and Laborers’ District Council. The following industry folks sponsored Refreshments on the Course: BPB America; Bell Supply/Shore Supply & Kass of Pennsylvania.

Guest Speaker Line-up

The line-up for Guest Speaks at our monthly General Membership meetings is as follows:

• January: Ken Kleinman, IFCA’s OSHA expert, will give us the latest scoop on OSHA.
  
  
• February: Hear what Kirk Wolgenuth has to say about Workemen’s Compensation.
  
  
• March: There will not be a meeting of the Board/General Membership.
  
  
• April: Keith Williams will attend to demonstrate AWCI’s Safety Software—each IFCA member will receive the latest version of it for FREE in February.

IFCA’s Web Site

Our “extreme make-over will be completed by the end of the year. When it’s finished most of the new information will be available to the industry; however, some sections will be password protected for members only.

*Happy Holidays and Every Good Wish for the New Year*

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SAFETY SEGMENT

Welding Safety Standard

Welding is part of the work of a number of trades including pipefitting, boiler making, electrical construction, steel erection, ship fitting, sheet metal, and facility maintenance. Welding is a hazardous task that produces a variety of injuries and illnesses every year including burns, electric shocks, falls, overexertion injuries, heat exhaustion, and respiratory disorders. Welding during a building renovation may expose the public to many of these hazards as well. Welding in a poorly ventilated area or in a confined space increases the hazards to the welder and other workers including toxic chemical exposures and asphyxiation.

The American Welding Society is an association that provides a forum for the exchange, consideration, and discussion of ideas and proposals that are relevant to the welding industry and the consensus of which forms the basis of its standards. It has developed standards and published handbooks on welding safety on a variety of welding processes, hazards and recommended controls. One such document is Safety in Welding, Cutting and Allied Processes ANSI/ASC Z49.1. It gives recommendations on how welding processes should be managed and safely controlled including using hot work permits, ventilation, and personal protective equipment.

Because the American Welding Society recognizes the importance of safe welding practices, it is making available this safety standard for free on the internet at: http://www.aws.org/technical/facts/Z49.1-1999-all.pdf

This standard is an excellent reference for contractors using welding, cutting or other hot work in its operations.

— Deane Smith, Member, MidAtlantic Construction Safety Council

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ROBIN KRAMER SAYS…

Five “must do” items for every business owner

If you own or manage your own business, you’re probably busy monitoring operations and dealing with everyday problems. But there are a few things that you should make time to do every year. These are important for your longer– term business and personal success.

1. Review your business insurance coverage. Don’t just automatically write a check to renew your insurance policies when they come due. Instead, you should sit down with your insurance agent every year. Review your business operations, focusing on any changes. Discuss types of risk that could arise. Ask about new developments in business insurance. Use your agent’s expertise to identify risk areas and suggest suitable coverage.
   
   
2. Review your business tax strategy. A month or so after you’ve filed your tax return, make an appointment with your tax advisor. Go over your return together and identify opportunities for tax savings. Question everything, starting with whether you’re using the right form of business entity. Ask about recent changes in the tax code and how they might benefit your business. Make your advisor a “partner” in your business strategy.
   
   
3. Update succession planning for your business. Review your succession planning annually. You should have a specific plan for each key manager position, including yourself. Be prepared for a short-term absence or a permanent vacancy. Your plan might mean promoting from within or recruiting externally. But an up-to-date plan can be invaluable if you have an unexpected vacancy.
   
   
4. Review your business banking relationships. Annually, you should go over your cash balances and banking relationships with your controller or CFO. Then both of you should meet with your banker. Ask about new products or services that could help your company. Address any service concerns or problems you might have had. Look for ways to reduce idle cash, boost interest earned, and improve cash flows.
   
   
5. Review and update your personal estate planning. If you’re a business owner, your company is likely to be a significant part of your estate. A good estate plan is essential if you hope to pass it on to your heirs. But your company, your personal circumstances, and the tax laws are continually changing. You should meet with your estate planner annually to make sure your plans are current.

Robin Kramer & Green can assist you with the reviews and planning necessary to your business’s long-term success. Give them a call.

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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TAKE IT FROM KIM

Please join me in remembering Jim Stoneback and Ray Cannon. Both gentlemen were past presidents and played significant roles at the association. “For death is no more than a turning of us over from time to eternity.” William Penn

Guess What? We’ve got TWO new members. Join me in welcoming Accurate Constructors, Inc. and Allied Interiors, Inc.

Worker's Compensation: The association has created a new member benefit effective January 1, 2006. Here’s how it works:

• Each IFCA member may consult with our Workers’ Compensation counsel from Stevens & Lee for a total of one hour per year FREE of charge.
  
  
• If your use of this benefit exceeds one hour per year, you will be notified by IFCA that future Workers’ Compensation charges will be billed to your company direct.
  
  
• Legal Counsel is available to answer any questions you may have, including whether to litigate a claim, strategies to reduce the cost of a settlement, settling claims, terminating an employee with a compensation claim and issues arising with your insurance carrier.

Congratulations to Michael & Michele Powell on the birth of their beautiful baby girl, Marisa—their Holiday Wish List probably includes an uninterrupted night of sleep!!!

Finish First Awards: This serves as a reminder that your Finish First Applications are due January 11, 2006. (Additional Application Forms can be obtained from IFCA). This year’s categories include: Acoustical Ceiling; Drywall; EIFS; Innovative Use of Materials; Millwork and Ornamental Plastering. In addition, we’ve added “The 2006 Member of Distinction” — an honor reserved for a member who has made exceptional contributions to the association and/or industry — the Nomination Form for this is due January 11, 2006. IFCA has communicated with our sponsors from last year’s event and we hope that everyone will renew their commitment to the association. I look forward to another fabulous program and can’t wait to see the nominated projects. If you have any questions about any portion of the Finish First Awards, please contact IFCA.

Computer Training: Kim Clerkin can arrange for computer training for any IFCA member for FREE. Training is available in Microsoft Word, Excel, Power Point & the Internet — at any level. The classes will be offered at the new JAC Computer Lab — scheduling is flexible. If you wish to schedule training, please contact Kim @ the IFCA office.

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LEGAL NOTES FROM STEVENS AND LEE

The Pennsylvania Mechanic’s Lien Law: What Every Subcontractor Should Know

Timothy Woolford, Esquire

The Pennsylvania Mechanics’ Lien Law of 1963, 49 P.S. § 1101-1902 (the Lien Law), gives subcontractors the right to file Mechanics’ Liens. However, before filing a lien, a subcontractor should determine whether an “Up-front waiver of Liens” was filed by the general contractor. While some states hold that Up-front waivers are void as against public policy, Section 1401 of the Pennsylvania Lien Law permits contractors or subcontractors to waive their lien rights by signing a waiver of liens before starting work. Even if the subcontractor has not itself signed an up-front waiver, the general contractor can effectively waive the subcontractor’s lien rights. A general contractor’s lien waiver cuts off subcontractors’ and suppliers’ lien rights if the lien waiver is filed with the prothonotary in the county in which the project was located either (i) prior to any work at the site occurring; (ii) within 10 days of execution of the prime contract; or (iii) not less than 10 days prior to contracting with the subcontractor or supplier.

While the Lien Law as it currently exists permits general contractors to cut off subcontractor’s lien rights, the legal requirements for up-front waivers are strictly construed, and if they are not carefully followed, the lien waiver will not be enforced and the subcontractor’s lien rights will not be cut off. See, e.g., Site Improvements, Inc. v. Central & Western Chester Ind. Dev. Auth., 437 A.2d 960, 961-962 (Pa. Super. 1991). Consequently, if a general contractor attempts to dissuade a subcontractor from filing a lien because an up-front waiver was allegedly filed, the subcontractor should not necessarily accept it – it should consult with legal counsel to determine whether the lien waiver was properly and timely filed, without any technical errors that would render it invalid. See Patrick McGuigan Roofing Co. v. Kallman, 592 A.2d 1368,1369-1370 (Pa.Super. 1991) (up-front waiver was technically deficient and invalid because it was not properly indexed at the courthouse).

The ability to file a lien upon the owner’s property is a very powerful tool to enforce a subcontractor’s right to payment. On projects that are financed by private lending institutions, the filing of a lien, or the mere threat of a lien, often causes the lender to apply pressure upon the owner to pay the claimant(s). Thus, because an up-front waiver can divest you of this powerful weapon, before undertaking work on a project, you should always determine whether an up-front waiver was filed. The general contractor’s ability to waive the subcontractor’s lien rights without the subcontractor actually signing the waiver is very dangerous to subcontractors.

If your lien rights have not been waived by an up-front waiver, it is critical to understand that the Lien Law contains special rules for subcontractors, which are set forth in Section 1501 et. seq. First of all, a mechanics’ lien must be filed within four months of the completion of work. Additionally, before filing a lien, a subcontractor must give the owner at least 30 days advance notice before actually filing the lien. Section 1501(c) sets forth the information that the notice must contain, included here: (1) the name of the party claimant; (2) the name of the company with which you contracted; (3) the amount claimed to be due; (4) the general nature and character of the labor or materials furnished; (5) the date of completion of the work for which the claim is made; (6) a brief description sufficient to identify the property claimed to be subject to the lien; and (7) the date on which preliminary notice of intention to file a claim was given where such notice is required by Subsection (a) of [Section 1501], and a copy thereof. Thus, these two requirements, taken together, mean that the subcontractor must file its notice of intent to lien no later than three months after last performing work because it must then wait another 30 days before actually filing the lien. The purpose of this pre-lien notice requirement is to afford the owner the opportunity to investigate the cause of the non-payment, and perhaps resolve it before a lien is filed.

In summary, filing a mechanic’s lien is a complex process and a minor technical defect can invalidate the lien. In order to protect your rights, you should consult with your attorney before attempting to file a lien.

IFCA’s attorney is Michael G. Tierce, Esquire—Stevens & Lee (215-751-2865)

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CALENDAR

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PICTURES

JAC: Dedication/Ceremony of the CARPENTERS’ new Training Facility (10/21/06)

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IFCA

Kimberly A. Clerkin, Executive Director
Valley Forge Office Center
676 E. Swedesford Rd., Ste. 300
Wayne, PA 19087
Phone: 610-225-1050
Fax: 610-225-1052
Email: kimclerkin@attglobal.net

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