GBC Reports..., June 5, 2003

Legislature in the Home Stretch?
Both houses of the State Legislature are planning to recess around June 19th now that they have resolved the State Budget issues with several veto overrides. It looks like they will deal with a few major issues like rent control and leave town. One major issue still hanging is liability reform, especially our Labor Law 240 reform. GBC believes there is still a chance for reform and we're working it hard with other groups. We'll report more on 240 and other issues as things happen in the next two to three weeks.
 

Workers' Comp Rates Up - Benefit Increases, Reforms Coming?
Workers' compensation issues have become more visible of late. The New York Compensation Insurance Rating Board's Rates Committee, which the GBC Executive Director sits on as the business community's representative, has asked the NYS Insurance Department to raise compensation rates by 11.3%. The Department is expected to issue its final ruling on rates in July. Their initial reaction to the submittal was not positive at all. New rates would take effect in October. Premium rates in New York haven't been raised since 1994. But they were still 28% above the national norm in 2002 and the eighth highest of 45 states surveyed. 

In the Legislature there is now an effort going on to set the stage, probably during the 2004 election year, for an increase in benefits and, hopefully, some reforms. Senator Tom Libous of Binghamton introduced the "workers' compensation equity act" this week at the request of the Business Council. The bill, S.5320, provides fundamental reforms to the workers' compensation system in New York State. Assemblyman Robin Schimminger of Buffalo will introduce a companion bill soon. The bill provides a 500-week cap on permanent partial disability. This never-ending benefit costs New York employers greatly. A cap would save a great deal. At the same time, there are several proposals to increase the benefits that could serve as the basis of some kind of deal. 

Both GBC and The Business Council of New York State are supporting efforts to highlight the need for cost-cutting reforms and to oppose actions that would worsen the burden of comp costs.


June Deadlines
June 10 - Don't forget to register for the GBC's Annual Membership Meeting. Our room block at the Sagamore closes on June 10. After that, rooms are on a space-available basis.
June 20 - Applications for the GBC Safety Excellence Awards are due.
June 27 - Applications for the GBC Build New York Awards are due.

Registration and application forms can be found on the Calendar page of our website, www.gbcnys.agc.org.


Belmont Stakes - June 7! 
Funny Cide, a New York bred with New York ownership including GBC Member and Director Harold Cring of Watertown, will attempt to win the Triple Crown.

GO FUNNY CIDE!!


GBC Member News 
GBC Member Storm King Contracting, Inc. (Montgomery) recently reached 800 consecutive days without time lost due to a work-related injury. We congratulate them on this achievement, and remind them and all GBC Members that applications for the GBC Safety Excellence Awards are due on June 20.

Robert J. MacPherson of GBC Associate Member Postner & Rubin (New York City and Holmdel, NJ) has been elected to the Governing Committee of the American Bar Association's Forum on the Construction Industry. The Forum is the largest organization of construction lawyers in the United States and abroad and has over 6000 members. Also, Howard Rosen of Peckar & Abramson has been appointed to serve a three-year term as the Chairman of the Construction Law Committee of The Association of the Bar of the City of New York. Congratulations, Robbie and Howard!

Several GBC Members were recognized by New York Construction News in their list of the Top 40 Construction Projects of 2003. Among those recognized, some for more than one project, were 

• Bovis Lend Lease and Turner Construction/Plaza Construction JV (the World Trade Center Recovery) 
• Bovis Lend Lease (220 Riverside Boulevard, Ritz Carlton at Battery Park, and Times Square Station Reconstruction) 
• Cianbro Corp. (Tomlinson Vertical Lift Bridge) 
• Plaza Construction (Random House Headquarters and Armory Place)
• Skanska USA (the AirTrain)
• Turner Construction (UBS Warburg Expansion)

Business Development Corp. Offers Development Opportunity
Many areas of New York State have experienced exciting developments in the technology sector over the past several years. In the Capital District that includes the creation of a Center of Excellence in Nanotechnology and the attraction of International Sematech North and Tokyo Electron Limited. Capital investments by these companies alone have totaled more than $1 billion. Currently, Albany County is experiencing a deficiency with regard to cost-effective developable land. As a result, the County is seeking to encourage the development of a technology business park. The Albany County Business Development Corporation will manage a two-step process concluding in a recommendation to Albany County to provide up to $1 million in economic development assistance for the establishment of an industrial park to serve technology firms. GBC has been approached by the local Chamber of Commerce to solicit interest. Proposal submissions are due by July 7, 2003. Please contact Brendan Manning at GBC for a full copy of the Request for Qualifications if you are interested.


ENR Top 400
GBC congratulates those Members recently named to the ENR Top 400:

Turner Construction (#4)
Skanska (U.S.A) (#5)
Bovis Lend Lease (#8)
Washington Group (#9)
Gilbane Building Company (#11)
J.A. Jones (#14)
Hunt Construction Group (#20)
BBL Construction Services (#76)
Cianbro Corporation (#126)
Barr & Barr Inc. (#130)
DeMatteis Organizations (#161)
Pizzagalli Construction (#176)
LeChase Construction Services (#181)
Ciminelli Construction (#192)
HBE Corporation (#197)
The Pike Company (#234)
F.J. Sciame Construction (#271)
Welliver McGuire Inc. (#318)
E.W. Howell (#343)
Christa Construction (#386)


AGC Federal Contractors Conference Scheduled 
The 2003 AGC Federal Contractors Conference will be held July 14-17, 2003, at the St. Regis Hotel, Washington, DC. This annual event provides contractors and agency personnel the opportunity to meet in a neutral forum and review construction issues occurring around the United States. These exchanges have provided opportunities for both federal construction contractors and federal agencies to share information on a wide variety of issues. You can find downloadable copies of the meeting and hotel registration forms, along with the meeting schedule at www.agc.org/NewsBulletins/2003_Federal_Home.asp. If you have any questions, please contact Marco Giamberardino, at the AGC at 703-837-5325 or via e-mail at giamberm@agc.org. 


Federal Tax Relief Act Passed - Industry Significance
Congress passed and the President recently signed the "Jobs and Growth Tax Relief Reconciliation Act of 2003." The bill contains immediate reductions in individual tax rates, depreciation, dividends and capital gains, and also sends $10 billion to states and local governments that can be used for infrastructure or other spending, plus $10 billion for Medicaid. Unlike the Senate version, the final bill contains no revenue raisers. Of specific benefit to construction, the bill cuts individual tax rates retroactive to January 1, 2003; reduces the tax on both dividends and capital gains to a maximum of 15% starting in 2003; expands the "30% bonus depreciation" to an immediate write-off (expensing) of 50% of the cost of new equipment bought after May 5, 2003 and before January 1, 2005; and permits firms that buy up to $400,000 of equipment to expense $100,000 in 2003-2005 (vs. limits of $200,000 and $25,000 under current law). To fit within the Senate's cap of $350 billion of relief, the bill "sunsets" many of these provisions after a few years.


Last Chance for Discounted Computer Training! 
It's your last chance to get New Horizons Computer Training Certificates at $165 (a $60 savings)! These vouchers, which can be used at any of New Horizons' facilities nationwide, entitle you to any of New Horizons Desktop Applications 1-day courses. Desktop applications include Microsoft Access, PowerPoint, Excel, Word, FrontPage 2000, QuickBooks 2000, PageMaker 6.5, Photoshop and more. We have a very limited supply. If you are interested, please contact Brendan Manning at GBC. 


OSHA Enhanced Enforcement More Apparent 
As we told you back in March, OSHA has a new enhanced enforcement policy that is becoming more apparent throughout New York. GBC Safety staffers are noticing more frequent visits from OSHA to construction sites. OSHA's Enhanced Enforcement Policy will focus on those employers who have received "high gravity" citations, which are issued when an employer's violations are considered to be at the highest level of severity. The policy focuses on five specific areas that will be strengthened: (1) follow-up inspections, (2) programmed inspections, (3) public awareness, (4) settlements, and (5) federal court enforcement. This initiative impacts establishments that received OSHA citations with the highest severity of willful violations, multiple serious violations at the highest level of severity, repeat violations at the originating establishment, failure-to-abate notices, or a serious or willful violation associated with a fatality. 

AGC of America is working hard to develop a process to ensure fair and unbiased enforcement as well as prevention. Please be aware that a visit from OSHA could happen at any time. If you run into any problems or would like some upfront assistance, please contact GBC Safety as soon as possible. 


CSI Proposes 86 Divisions
The Construction Specifications Institute (CSI) began the process several years ago of "updating" MasterFormat 95 from the longstanding 16 Divisions to a whopping 86. AGC of America and others such as AIA were not invited to the table until last August after CSI had already made significant progress. CSI has made it clear that their product is a voluntary standard and was not subject to a consensus process.

While AGC has not adopted an official policy position on the proposed expansion, there has been a fair amount of industry-wide confusion as to why CSI is doing this, what benefits will be derived from doing it, and what the industry impact might be.

CSI recently completed their annual meeting. Out of that meeting will come Draft 4, which will go out for comment. This is intended to be the final round in terms of industry comment. CSI is still hoping to close out work by this fall in order to release MasterFormat 04 by September of next year.

Beyond the 86 Divisions, CSI is proposing a change from a five-digit to a six-digit number format. Sections are broken out in much more detail than in MasterFormat 95 and new categories also have been added. The overwhelming majority of those added sections will be in the mechanical and plumbing areas.

GBC and AGC will keep on top of this issue and attempt to have some influence on the outcome. Your thoughts and reactions to this proposal would be helpful. You can download the latest draft and get the history of the expansion process by going to www.csinet.org/technic/mfrevision.htm. 


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