GBC Reports..., April 16, 2003

State Budget Heads to a Confrontation
As of yesterday, the Senate and Assembly have announced they will do a "two-way" budget in late April or early May. Traditionally, State Budgets are three-way efforts. Given the serious fiscal crisis the State is facing and the huge gap between the Legislature and the Governor on this issue, the Legislature has proposed to take the unusual step of amending the Governor's budget and returning it to him, daring the Governor to line-item veto any changes. It takes a two-thirds vote to override. The Democrats have that in the Assembly, but the Republicans do not. How many Republicans would join Senate Democrats to override would be very interesting. 

Both houses of the Legislature have promised to restore education and health cuts, but nobody is talking about where they plan to get the money to do so. The public employee and health worker groups are pressing for tax increases, especially the "closing of corporate tax loopholes." The Business Council's analysis of most of these tax proposals shows potential serious harm to many job-producing industries. In terms of construction industry issues, except for the macro-economic and business climate issues mentioned above, there appears to be little of note with one exception. There continues to be active discussions to do something with the Wicks Law as a mandate relief and cost-cutting issue. At least a dollar threshold increase is likely. Whether other major changes are possible, only time will tell. 


Tort Reform - Labor Law Lobby Day - April 29
Under the leadership of New Yorkers for Civil Justice Reform, there will be a lobby day in Albany on Tuesday, April 29, 2003 to work on several tort reform issues, especially for the construction industry Labor Law 240 reform. At the same time, the National Hispanic Business Group and the NYS Association of Minority Contractors are also coming to Albany. GBC will coordinate Member involvement with both efforts to ensure participation in key meetings with Senators and Assembly Members. We have asked several GBC Directors and other vocal Members to participate. If any others are interested, please call the GBC and we shall get you registered and scheduled. 


Sign Up for Smartbrief! 
Are you signed up for the AGC Smartbrief? Since its launch, AGC SmartBrief has been helping contractors and professionals in the construction industry focus on building and managing their businesses. If you would like to receive up-to-date construction-related news highlights and trends in an easy-to-access format, you can sign up for free at www.smartbrief.com/agc. 


On-Line/Reverse Auction Bidding on the Rise
GBC is hearing more and more reports from around the country that various private construction users are engaging in on-line/reverse auction styles of bidding and procurement. Even the U.S. Army Corps of Engineers is reportedly about to try the practice. Some states are even considering laws, rules and regulations that would allow it. 

We're curious about your reactions to this. If you have been involved in on-line or reverse auction bidding, please let us know of your experience - negative or positive. 

Because of this trend, GBC is putting together a presentation on the subject at our Annual Meeting in July at the Sagamore. On May 20th, the AGC of Connecticut is offering a program on the matter in Hartford.


OSHA to Focus on Education and Outreach 
OSHA Director John Henshaw announced that the agency will focus on education and outreach through a range of different programs. OSHA plans to:

• Enhance its outreach to Hispanic workers through training programs offered in Spanish, alliances with employer groups such as the Hispanic Contractors of America, and research focusing on the work patterns of immigrants.
• Develop media campaigns and alliances with industry to tout the economic value of safety and health programs.
• Coordinate with business and engineering schools on the development of safety and health curricula.
• Expand access to OSHA's training materials.

Last year 14,000 individuals became safety and health trainers through agency programs and those trainers trained 250,000 workers. Henshaw said the agency wants to train 30,000 trainers annually within two years. 

Henshaw said outreach and education would also occur through OSHA's cooperative programs. Such cooperation comes through fairly structured agreements under the Voluntary Protection Program, formal partnerships with the agency, and less structured alliances. Henshaw noted that OSHA currently participates in VPPs covering 800 sites. Of these sites, only five involve the construction industry, a participation rate he hopes to expand in the future.


AGC & FMI Partner on Ownership Transfer Seminar 
The AGC of America and FMI Corporation have joined to present "Ownership Transfer of the Construction Company." This two-day conference will give you the tools you need to begin structuring a plan that will ensure your personal future and the continued success of your business. The program is being held in San Diego, CA at the Embassy Suites La Jolla on May 8-9, 2003. A variety of management succession options will be explored to help you begin the selection process. The many approaches to ownership transfer and important tax issues that will affect your plan will also be discussed. The cost for enrollment is $675 for the first AGC member and $575 for each additional registrant. Please contact Brendan Manning at GBC for more information. 


AGC Offers New Websites  
AGC of America recently unveiled three new websites to assist the construction industry with three very hot topics: Mold, Environmental and Prompt Payment concerns. You can access the Mold Assistance site at http://www.agc.org/safety_info/mold_guidance.asp or through the AGC home page at www.agc.org. For environmental questions you can now go to the new Construction Industry Compliance Assistance website at http://www.cicacenter.org/. This site is a joint venture with other industry associations to help in providing one informational source for environmental rules for the construction industry. The Prompt Payment e-Clearinghouse site can also be accessed from the home page of AGC at www.agc.org or direct via http://www.agc.org/promptpayment/index.asp. 


Congratulations! 
Our congratulations go to James Scully of GBC Member Scully Construction, Inc., who was recently named as a 2003 inductee to the Archbishop Stepinac High School Hall of Fame. He was recognized as one "who has consistently and faithfully placed his many talents at the service of Stepinac."


AGC and EPA Launch Joint Project 
In celebration of Earth Day 2003 - April 22 - AGC has begun work with the U.S. Environmental Protection Agency (EPA) to develop an environmental management system (EMS) "template" that provides the basic elements that every EMS for construction should contain. Using the template, each contractor can develop an EMS specific to its business that can turn any project into an environmental success. The EMS serves as a management tool to continually improve all operations that impact the environment.

AGC and EPA plan to host a conference call on April 14 to discuss the construction industry's use of EMSs. Specific focus will be on the costs and benefits of operating with an EMS. This effort is part of a joint AGC-EPA partnership to increase the use of EMSs.

For more information on why contractors should have an EMS, see http://www.agc.org/content/public/PDF/Environmental_Info/EMSWeb.pdf


GBC Joins AGC in Precedent-Setting Lawsuit 
GBC and AGC have filed an amicus brief in the New York State Court of Appeals that could have an impact on insurance coverages for mold and other environmental situations. An insurance carrier has sought to use the pollution exclusion in a policy to deny coverage in a situation where the contractor exposed a worker to normal business activities - in this case paint fumes. The case has national significance because the "absolute" or "total" pollution exclusion that the plaintiff is relying on is a standard form exclusion used throughout the United States. A favorable decision in New York could help tip the scales on this issue. 


Subcontractors and SED Force Engineer to "Approve" 
After a year of wrangling by a steel subcontractor and ESSA (Empire State Subcontractors Association), the State Education Department's Office of Professional Discipline (SED) forced The Cantor Seinuk Groups, Inc. (a New York City structural engineer) to acquiesce and "approve" submittals when related to delegated design. As GBC has regularly schooled, the Regents Rules relative to design delegation clearly require the "principal design firm" to review and "approve" such submittals. Following issuance of those rules GBC and ESSA held numerous meetings with SED and various design professional associations to discuss implementation. It was requested by the designers that GBC and ESSA would utilize an informal process prior to filing unprofessional conduct charges where we believe violations have occurred. That process included contacting SED, who would try to convince the designer of the error of his ways and then would seek repentance. 

As it happened, Cantor Seinuk was using typical "weasel words" for their stamps on shop drawings including those relating to delegated design. As we know, these stamps are used in an attempt to shed liability. A steel subcontractor took exception and SED agreed. Under what appears to have been some duress (the implied threat of an unprofessional conduct charge), Cantor Seinuk agreed to stamp such submittals with a clear and unambiguous approval. Let us know if that is truly occurring on each project.


Another Successful Construction Career Event 
The second annual Capital District Construction Career Days program was held on April 9 and 10th in Glenmont, NY. Over 700 students from as far away as Newburgh and Syracuse attended the event, where they were exposed to hands-on learning approaches to the construction industry. Students were able to operate mini-excavators, backhoes and skid steers as well as learn some basics in plumbing, carpentry and surveying. There were many statewide government agencies, apprenticeship programs and private industry employers on hand to pass out vital career information.

Special thanks go to GBC Member The Pike Company for their generous $1500 donation. Their gift went toward the purchase of a photo and keepsake frame for students that attended to help them remember the day. We would also like to thank Eastern Contractors Association for their $1500 donation that helped pay for the volunteers' lunches for the two-day event. There are currently two other Career Days programs taking place around the state, in Rochester and Utica/Rome. If you would like to assist or plan a new event in your region, please contact Brendan Manning at GBC. 


Upcoming Events
Please check the GBC Calendar for a complete list of upcoming events, with links to registration forms.