PRESIDENTIAL ADDRESS

Beware of SIGNING Partial Release of Liens. Most state that all rights, claims, and demands are released up to and including the date that you sign the Partial Release of Liens. So what if you're waiting on Change Orders for work performed during that period of time? If you don't amend the Partial Release of Liens stating that pending Change Orders and Extra Work Tickets are excluded from the release, you may find that legally you cannot collect. A recent ruling by the Philadelphia Court of Common Pleas took that position — that a subcontractor knew or should have known that it was being adversely impacted at the time it signed each release, yet made no attempt to alter the language in the release. In the last several years two federal courts reached similar conclusions.

A word to the wise: Amend those releases to state that pending Change Orders and Extra Work Tickets are exempt from the release.

Most of the information above was taken from an article published by Cohen, Seglias, Pallas, Greenhall and Furman PC.

On another front, the New Jersey Carpenters have begun negotiating with DISCA and NJBCA for the new contract. The contract expires 4/30/07. For those bidding work in new Jersey, there is no word out at this time on "The Dollars".

—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

Edward Coryell, Executive Secretary-Treasurer/Business Manager

On February 20 the carpenters hosted a Cocktail Party for Mayoral Candidate, Bob Brady. The association wishes to thank and recognize those IFCA contractor members/friends that supported the event: Aimm Philadelphia Installations; Blasz Construction; Ceilings Inc.; Elite Drywall; Fastrack Construction; Landco Inc.; Frank T. Lutter, Inc.; Penn Acoustics; Plumbline Construction; Raymond Shoemaker, Inc.; Sloan & Company; TNT Construction; Stevens & Lee; Supreme Ceilings and Union County Construction Group.

The annual JAC Open House and Skills Contest is scheduled for Friday, May 4. This event is held at the Carpenters Training Facility (10401 Decatur Rd., Philadelphia, PA) from 8:00 a.m.-5:00 p.m. The association looks forward to this event and encourages our contractor members to stop by to view the contest...these guys and gals are good!!!

Contractors with graduating apprentices are invited to the carpenters' annual Graduation. This event is by invitation only and will take place on Thursday, May 24 — invitations will be mailed shortly and will contain specific details.

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

Harry Williams, Business Manager/Secretary Treasurer

"District Council 21/ Local 1955 Drywall Finishers Apprentice Program will be looking to employ 18 to 20 'new' apprentices for this September's apprentice class. Hiring will start in April and run through September. I have 35 prospective candidates that are drug tested, interviewed, and are looking for employment. Last fall we had a record 23 apprentices enter our program, 18 survived the cut and all are presently working. Please feel free to give me a call or stop by and check out our new training facility. For those individuals who have any questions regarding the apprenticeship program, please feel free to contact me at 215-501-0130 extension 18 or by e-mail at chuckmurtha@dc21.com. Thanks!" Chuck Murtha, Drywall Finishing Apprentice Coordinator

Safety Saturday is scheduled for May 19 starting @ 8:00 a.m. The program is designed to cover the latest safety regulations, equipment, education, etc. Hope to see there!

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LABORERS' DISTRICT COUNCIL ("LDC")

Wade H. Stevens, Jr., Business Manager

Wade Stevens says that his union has plenty to offer to signatory contractors, project owners, or anyone else who wants to do business with the Laborers District Council, including information ranging from bidding opportunities to contractor searches. The laborers have some of the best trained, most productive and safest workers in the industry. When you unionize you get a highly effective work force that is dedicated to improving your bottom line. IFCA's professionals care about their bottom line too. If you're a contractor and have an industry concern, give Wade a call.

Save the Date: The Laborers' District Council 8th Annual Charity Golf Classic—May 29 @ Spring Mill Country Club.

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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GET THE SCOOP

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

• March: The General Membership meeting will be held on March 26 instead of the first Monday in April. Our guest speaker is Stephen Mullin from Econsult Corporation. He will talk to us about a local financial outlook.
• May: The General Membership meeting will take place on May 7. IFCA's Title Sponsor, Lafarge, has been invited to our meeting to talk about a new product. Lafarge was provided with this opportunity because they have remained our Title Sponsor for 7 years.
• June: There will not be a General Membership meeting.

EDUCATION:

• OSHA TRAINING: OSHA training is available to our members through several sources — the Mid-Atlantic Construction Council, the JAC or District Council 21. For more details, contact the association office.
• DREXEL SUMMER TERM: 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. For information about Drexel, contact the Carpenters JAC @ 215-824-2300. For information on the Community Colleges, contact the Consortium @ 215-218-3886.
• COMPUTER CLASSES: Don't forget — 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.

2007 Winter Conference: The Winter Conference is an opportunity for our members to discuss business in a relaxed setting. This year our Legal Presentation covered: (1) Trends in Union Membership; (2) Legislative Updates; (3) Diversity in the Workplace (Demographics & Statistics); and (4) a Policy for Cell Phone Usage.

Newest Member: Please join the association in welcoming our newest member — Bigelow Brothers. Bigelow Brothers' areas of expertise include acoustical ceilings, carpentry/millwork, metal stud/drywall and light steel framing. They are a great addition to the IFCA group. Alan or Scot can be reached at 215-563-5255.

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SAFETY SEGMENT

Please share this information with others, both at work and home; it relates to electrical items purchased for use in both settings. Understand that buying an electrical appliance or device with a UL Label signifies the item was manufactured for an intended purpose by a specific manufacturer who contracted with UL to test a sampling to demonstrate acceptable performance with regard to human life and product safety.

Using a labeled appliance or device in some other manner than intended can result in injury, death or damage to goods and property. Falsifying that testing was done basically voids any reliability that the appliance or device can be used safely.

This issue has serious possible consequences for those who may purchase and/or use appliances and devices displaying the ID, "My Helper"; please read on.

UL Warns of Counterfeit Extension Cords, Power Strips, Surge Protectors, and Current Taps

NORTHBROOK, Ill., USA - Dec. 5, 2006 - Underwriters Laboratories Inc. (UL) is notifying consumers that the "My Helper" products identified below have not been evaluated for safety by UL and bear counterfeit UL Marks.

Units: Unknown quantity - Manufacturer: Unknown - Date of Manufacture: Unknown

Identification: On the extension cords: The cords are white, brown, green, or orange in color in lengths from 3 feet to 100 feet. Attached to the cords are counterfeit UL holographic labels bearing one of the following file numbers and date codes:

E157848, 04/01
E157848, 09/01
E233301, 08/05
E174825, 03/03
E137398, 01/02
E137398, 09/02

Identification: On the power strips and surge protectors: The power strips have 6 or 8 outlets and employ counterfeit UL holographic labels bearing the following code numbers and date codes:

8G14, 02/04

Identification: On the current taps: The current taps (also known as wall taps) have three outlets or six outlets; other styles convert a 3-prong plug to a 2-prong plug. These products employ counterfeit UL holographic labels bearing one of the following code numbers and date codes:

6MA9, 02/04
6MA9, 01/05

Identification: On the product packaging: The packaging is marked with the brand name "My Helper," "Made In China" and a counterfeit UL Mark. The country of origin is China.

What you should do: UL recommends that users stop using these products immediately and return them to the place of purchase. By John H. Young, Skanska USA Building Inc. & the Mid-Atlantic Const. Safety Council

To receive a copy of the complete article, please send an e-mail to Kim Clerkin (kimclerkin@attglobal.net).

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ROBIN KRAMER SAYS…

Avoid three mistakes if you're starting a business...

According to the Small Business Administration, a third of small businesses fail within the first two years. Over half fail in the first five years. So if you're thinking about starting a small business, it pays to take an honest look at yourself, your business idea, and the marketplace. You can increase the odds that your business will survive by avoiding three very common mistakes.

• Mistake # 1: Not enough Cash. If you're starting out, it's a good idea to accumulate — before you enter the marketplace — a cash reserve that's about three times your estimated need. Small businesses often face down times, when sales aren't exactly stellar and revenues slow to a trickle. Also, unforeseen expenses for insurance, staff, buildings, advertising, taxes (the list goes on and on) can cripple your business and shut it down before it's out of the starting block. Extra cash can make the difference between a survivor and a statistic. A reserve fund provides an extra bit of cushion to keep the business operating as you work toward the next sales goal.
  
  
• Mistake #2: Inadequate Planning. Building a business is like building a house. You need a foundation, clear goals, and an implementation strategy. Where do you want to be a year from now and beyond? If people built houses with as much foresight as many startup businesses put into planning, you'd see a lot more folks camping in their basements. Developing a sound business plan means doing solid research. It means understanding the marketplace, knowing what sets your product apart, and getting a grip on the costs to implement your plan. An idea is not a business plan. You need to flesh out the idea and get down to specifics.
  
  
• Mistake #3: Inflexibility. Once you've developed your business plan, be willing to adapt it to changing conditions. More than a few businesses have started with a great business model, but failed to modify that model when market conditions evolved. If your customers or competitors change (and they will over time), don't be afraid to change with them.

If you're considering starting a small business and would like assistance, give Robin Kramer & Green a call.

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

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

Contact Robin Kramer & Green to discuss your retirement options.

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TAKE IT FROM KIM

Finish First Awards: The judges have put their "John Hancock" on the winners! "Sam Adams" is sitting next to "Johnnie Walker" and "Ben Franklin" is working the crowd...SAVE THE DATE: June 1, 2007 @ the National Constitution Center. IFCA is pleased to say that Lafarge remains our Title Sponsor — THANK-YOU!!! ALL elevated and contributing sponsors from 2006 have renewed their commitment to IFCA for this year's event (Presenting Sponsors: Metropolitan Regional Council of Carpenters of Philadelphia & Vicinity, the Kempf Company, and the International Union of Painters and Allied Trades District Council 21; Awards Sponsor: Marjam Supply; Band Sponsor: Certainteed Ceilings; Centerpiece Sponsor: USG; Invitation Sponsor: Commercial Interior and Exterior Supply Co., Inc.; Weekend Getaway Sponsor: Kamco Building Supply; Contributing Sponsors: Armstrong Ceilings, Dietrich Metal Framing, George F. Kempf Supply Co., Marino/Ware, National Gypsum, Specialty Products & Insulation Co. and Stevens & Lee! Back by popular demand...Entertainment by the Chatterband — see you there — we'll find out together who has made IFCA history!!!

IFCA Membership: If you are not a member of IFCA, please contact the association to discuss membership opportunities. We're always looking to enhance our member benefits and at IFCA we believe we have a lot to offer to union interior finish contractors. Take a look at the list of our members (page 3), they have the best reputations in the industry. Call me @ 610-225-1050.

New Member Benefit—Web Site Reimbursement As a result of the increased Industry Advancement, the Board of Directors has approved of a new member benefit — Web Site Reimbursement. To learn more about this new member benefit, please contact the association office @ 610-225-1050. Maximum one-time reimbursement is $1,000.

Bond Reimbursement: The association provides bond reimbursement to our members. Our agreement with the carpenters requires a $75,000 bond while the IUPAT bond is tiered based on manpower (1-15 is $30, 000; 16-35 is $40,000; over 35 is $50,000). The maximum reimbursement for members per bond is $1,000. Questions should be directed to me.

Legal Binder: The association is working with Mike Tierce and his legal team from Stevens & Lee to update our legal binder, which appears on IFCA's web site. The binder is password protected and for the use of our members only. We hope to complete the revisions by the end of April. If you have a topic that is appropriate for IFCA to add to our binder, please contact the association office to discuss your idea(s) with me.

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LEGAL NOTES FROM STEVENS AND LEE

On February†26, 2007, the Third Circuit Court of Appeals issued its most recent decision concerning "alter-ego" status, Trafford Distribution Center v. NLRB, 3rd Cir., Nos. 05-3765 and 05-4198. If a company is determined to be an alter ego of another, it must honor the other company's union contracts. In deciding whether facially independent employers are alter egos, the National Labor Relations Board ("NLRB") considers whether the two entities have substantially identical ownership, management, supervision, business purposes, operation, equipment and premises, and customers. The NLRB also looks to motivation, i.e., whether the purpose behind the creation of the alleged alter ego was legitimate or whether, conversely, its purpose was to evade responsibilities under the National Labor Relations Act ("NLRA").

In Trafford, the first business closed because of financial distress, and the alter ego opened five days later. The first business, Liberty Source W, LLC ("Liberty"), was a 120-employee operation whose primary business was printing and digital services. Less than 2% of its business was warehousing services. Five days after Liberty shut its doors and its assets were overtaken by a secured creditor, Trafford Distribution Center ("Trafford") sprouted. Trafford's President was the spouse of Liberty's owner. Three of Liberty's four managers constituted the management of Trafford. Ten of the twelve Trafford employees were previously employed by Liberty. Further, nearly all of Trafford's initial customers were former Liberty customers.

However, two other factors seemed to weigh against a finding of alter ego status. First, it was highly suspect that the owner of Liberty would sacrifice the printing and e-source operations that constituted over 90% of its business for the purpose of freeing the warehouse operation from its labor obligations and responsibilities. Second, while Trafford did continue with the customers and same business as that 2% of Liberty, it still was only 2% and therefore could not constitute "the same business operations." Nevertheless, the Third Circuit affirmed the ruling of the NLRB that Trafford was an alter ego of Liberty and forced it to continue Liberty's obligations under two separate labor contracts.

The Court admitted that this was farther than it has gone before when explaining: "We do acknowledge that we have found no case with facts as stark as these." The Court explained that the alter ego test does not require the presence of each factor to conclude that alter ego should be applied, and when weighing the factors in these circumstances, more factors than not showing alter ego existed.

The lesson to be learned from Trafford is that there is no specific requirement that any two companies have substantially similar business purposes to find that they are alter egos. Employers that operate multiple companies should carefully review the Court's reasoning and analysis in Trafford to avoid potential legal issues.

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CALENDAR

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PICTURES

This yearís attendees included Aimm Philadelphia Installations, American Interior Construction, Inc., Blasz Construction, Inc., Ceilings Inc., Fastrack Construction Inc., Landco Inc., Guy C. Long, Inc., Merchant Construction Co., Peter Bradley Construction, Plumbline Construction, Sloan & Company, Talon Construction Co., Inc. and Union County Construction Group, Inc. Also in attendance was IFCAís legal counsel/speaker, Michael Tierce, Stevens & Lee.

The association's annual conference was held in the Dominican Republic at Casa de Campo February 22—28.

Legal seminar topics included (1) Union Membership; (2) Legislative Updates; (3) Diversity in the Workplace (Demographics & Statistics); and (4) a Policy for Cell Phone Usage.

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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