GBC Reports..., May 1, 2003

240 Effort May Be Turning the Corner - Minorities Lobby for Reform 
This week may have been an important turning point in the construction industry's effort to gain reform of Labor Law 240 and 241 and give contractors a fighting chance to defend themselves in the courts, especially if they provide safe workplaces. 

A strong coalition of minority contractors came to Albany to talk to the Members of the Black and Puerto Rican Caucus and many others about the serious impact the insurance crisis, driven by the unfairness of 240, is having on their community. Led by Gilbert Rivera, a waterproofing contractor from Brooklyn, the National Hispanic Business Group, the NYS Association of Minority Contractors and the Minority Business Leadership Group spent an effective day talking to many legislators. The tone was clearly positive, and by day's end the Caucus leadership voiced willingness to be supportive. In the solidly Democratic Assembly, this is critical. GBC, the BTEA of the City of New York and the New York State Builders Association, representing the homebuilding world, joined the effort. 

New Yorkers for Civil Justice Reform also spent the day working on an array of tort reform issues, but by the end of the day it was clear the issue gaining the most sympathy was reform of 240. Why? Because all we seek in the reform legislation put forward by Senator Dale Volker (S.1710) and Assemblyman Joe Morelle (A.7213) is the ability to defend ourselves if we provide safe workplaces. 

At the same time, the Buffalo News ran a series of effective articles on this subject endorsing 240 reform. The Business Council and others called for tort reform as part of the budget process. The New York State Bar Association was splitting with the trial lawyers, calling for reform of 240 by clarifying the recalcitrant worker rule, which is akin to the reform efforts we seek. And finally, New Yorkers for Civil Justice Reform was releasing a survey that showed New Yorkers overwhelmingly endorse tort reform.

One of the focal points of this effort, obviously, is the rise in insurance rates and the problem of insurance availability for some. Legislators made many requests for data on the subject. We have generated much information on differing rates and losses in New York with other states. Unfortunately the Achilles' heel of this effort has been good information from the insurance carriers. The Superintendent of Insurance is seeking survey information, which we have yet to see. 

Clearly, our effort has gained momentum, but the fight is still a long and challenging one. GBC will hold a legislative reception in the Rochester area for its Members and key legislators on May 16th. Next week, we will ask the Membership to write and call the entire Legislature in a concerted fashion. Quality informative conversations with your legislators can make the difference. The construction industry is united as never before. Join the effort. Hopefully, once the State Budget is settled, issues like this can be tackled before the summer recess in June. 


Legislature and Governor at Serious Odds Over Budget 
This week the Legislature took the unusual step of overriding a Governor's veto, something that is rarely done in Albany. In this case, the Governor had vetoed a bill to allow school districts two more weeks before taking their budgets to the voters. The purpose of the bill was to provide more time to pass a state budget to identify levels of school aid. That extension has now happened and the Legislature has begun to pass its own budget. Education, health and other treasured funding programs have been restored. Construction programs have remained pretty much status quo. 

The issue is how to pay for these restorations. Despite the best efforts of the Business Council and others seeking to control spending, an array of tax increases appears likely. A temporary surcharge on income taxes will be proposed for high-income taxpayers ($150,000 and up for joint filers) and a .25% increase in sales tax. There will also be other corporate tax increases, supposedly closing loopholes. The Governor fears these "job-killing" tax increases will do real harm to the economy. The Legislature fears that without the spending restorations and some tax increases, there will be tremendous pressure to cut programs and increase real property taxes on the local level. There is no easy way to close a $12 billion budget gap.

Future economic development and viable public works programs will depend on a balanced budget and a thriving economy. In the short term there will be fiscal strain, but in this environment, there may be opportunity for other reforms that will make a difference in the business climate, such as changes to Labor Law 240. 


GBC Documents on CD - Now Available!
We're pleased to announce that we have two new CD-ROMs available for purchase. The first contains a number of GBC publications on various construction industry topics, such as our popular Guide to Construction Services on Building Work in New York State, and booklets on the lien law, separate gates, contract document development and subcontractor clauses. The second contains over 100 ToolBox Talks, developed by GBC's safety professionals. Order forms are in the mail, and available on our website.


Build NY Awards - New Category!
Entry forms for the 2003 Build New York Awards were mailed last Thursday. If you need another copy, click here.

This year we are contemplating a new category for first-time entrants. You'll notice a line on the entry form asking if your firm has entered the competition before. We will ask the jury to take a look at the first-time entrants to see if special recognition of one or more of them would be appropriate. We know that the prospect of entering for the first time can be a little intimidating, and this is our way to encourage first-timers to take the plunge.

As always, if you have any questions about preparing your entry, don't hesitate to call Pam Martin at GBC, 518-869-2207.


Four Awarded Paul B. Richards Scholarships
We're happy to announce that due to the generous donations by the GBC Membership to the Paul B. Richards Memorial Scholarship Fund we were able to offer four $2000 scholarships to New York students this year. The four winners are: 

• Tiana Rabarijaona of Astoria, who is a junior pursuing a Bachelor's Degree in Civil Engineering from the City College of New York. 
• Benjamin Schiller of New York City, a freshman at City College of New York who is also pursuing a Bachelor's Degree in Civil Engineering. 
• Scott Butler of Schenectady, who is currently a junior at Clarkson University studying Civil Engineering.
• Debbie Seufert of Coeymans, who is finishing her Associate's at Hudson Valley Community College and plans to transfer to the University of Florida to study Civil Engineering. 

Congratulations to all the students! If anyone has any openings for summer positions, these students would be the perfect fit and may very well be excellent future employees.


Mold Program Scheduled for NYC
On Thursday, May 29, New York Construction News and GBC Member Peckar and Abramson are sponsoring "Mold: Fact vs. Fiction - What Designers, Contractors and Real Estate Owners Need to Know." The program will run from 1-5 p.m. at the McGraw-Hill Auditorium in NYC. It will be followed by a cocktail reception to celebrate Peckar & Abramson's 25th anniversary. The panel will include environmental scientists, architects, suppliers, insurance and construction industry representatives discussing the various aspects of this problem. The program will also feature a presentation of the recently released AGC guidelines. Click here for registration information.


GBC/NESCA Golf Tournament 
The 8th annual GBC/NESCA Joint Mid-Hudson Golf Tournament has been scheduled for Monday, June 9, at the Wiltwyck Country Club in Kingston, NY. Lunch and Registration run from 11 a.m.-12 noon with a shotgun start at 12, reception at 5:00 p.m. and dinner at 6 p.m. The cost for the entire day is $160 per person. For more information and a registration form, please contact Brendan Manning at GBC. Act fast - foursomes go quickly! 


GBC Member News
GBC Associate Member Steve Charney of Peckar and Abramson of New York City was honored with the prestigious AGC Presidential Coin for his work as the Vice Chair of the AGC Mold Task Force. The award was presented to Steve by AGC President Larry Gaskins at the recent AGC Annual Convention. Congratulations, Steve!

This weekend, the Subcontractors Trade Association will honor three GBC Members at their annual Construction Awards Night. Frank J. Sciame (F.J. Sciame Construction Co., Inc.) will be presented the Silver Shovel Award, and Nicholas Gargiulo and Larry Sitbon (Citnalta Construction Corp.) will take home the Builder of the Year award. Our congratulations, gentlemen!

We don't usually cover sporting events, but it's not often that a GBC Member can claim part ownership of a Kentucky Derby-caliber horse. Harold Cring of Bette & Cring, LLC has just such an interest in "Funny Cide." You might want to stop at OTB this Saturday. Best of luck, Harold!


NYU Real Estate Construction Seminar
GBC staff recently attended a "Real Estate Construction Demand and Supply Issues" program at NYU that focused on the planning of construction and real estate in New York City. Panelists from the cultural arts, higher education, and healthcare all reported high demand for construction projects in the near future. However, both the cultural arts and healthcare sectors stated that the City capital budget and State and Federal funding are the largest contributors to their improvement projects. Budget crunches are putting these projects in jeopardy. 

New York's major initiatives are affordable housing, lower Manhattan rebuilding, and waterfront development. While the affordable housing market seems strong and is proceeding forward, the rebuilding of lower Manhattan currently focuses almost exclusively on the World Trade Center. The rebuilding of lower Manhattan is a long-term project (8-12 years) and mostly in the conceptual stage now. Waterfront development is even more conceptual. In summary, the seminar portrayed an encouraging sign that the construction market will prosper in New York City; however, it will be a long process for such dramatic projects (lower Manhattan and waterfront) to come to fruition. For more information on lower Manhattan rebuilding, visit www.lowermanhattan.info and click on the vision brochure.


Asbestos Litigation Trust Fund
Over the course of the past few months, negotiations have been occurring in an attempt to reach agreement for an asbestos litigation trust fund. Insurance companies, businesses, and unions have been holding discussions with Senate lawmakers on both sides of the aisle to create some sort of agreement on how to address the flood of asbestos lawsuits. Senate Judiciary Chairman Orrin Hatch (R-UT) and the Judiciary Committee's Ranking Member, Patrick Leahy (D-VT), asked the various stakeholders to come together to work on finding common ground that all parties can agree upon. The Senators would like to introduce legislation in May on this issue. 

The main components of the possible agreement would be the development of a trust fund and some sort of medical criteria to determine eligibility for an award. For more information, contact Kelly Krauser at the AGC of America at 202-547-4685 or krauserk@agc.org.


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