GBC Reports..., July 21, 2003

GBC Annual Meeting - Information and Fun 
The GBC held its Annual Membership Meeting last week, and over 180 GBC Members, family and friends enjoyed a lovely long weekend at The Sagamore Resort on Lake George. The welcome night reception featured a visit from our friend and "Keyhole Address Speaker," Toivo Nerdlinen, III, who read a fishy poem composed for the occasion. Friday's business session featured Toivo's alter ego, Paul Hoffman, whose presentation riveted the Members. Saturday's business session featured AGC of America President Jack Kelley and a panel discussion on A/E - CM relationships. 

The meeting wasn't all business. Although the softball game was a rainout, the weather turned nice in time for the Friday evening dinner and sunset cruise on Lake George. The Paul B. Richards Memorial Golf Tournament was held on Saturday afternoon, and the Annual Membership Banquet that evening. At the banquet, outgoing President Scott Welliver was honored, and a new slate of Officers and Directors inaugurated. (See the list and excerpts from Dave Knauss' inaugural speech below.) The Future Construction Leaders Class of 2002-2003 was also recognized as they graduated from the yearlong program.


Members Obtaining the Most Value from GBC and AGC
The following are some essential excerpts from President Dave Knauss' inaugural speech to the GBC Membership on July 12th. They speak for themselves.

Like those who've stood here before me, I am deeply honored to accept this position and vow to do my best to carry on GBC's great tradition of service to the construction industry in New York State. I say this because I, too, know that I have received far more from this association than I've contributed.

I would like to recognize and thank Scott Welliver for his strong and skillful leadership over the past year and the progress the association has made to improve relations and create a regular dialogue with the state agencies that so many of us rely on for our work. 

This is a great association with a long history. As we approach our 50th anniversary, we are faced with opportunities and challenges that the founders of this group could never have dreamed of. Business people today have access to an unimaginable supply of information, products and services - right at their fingertips. Business associations that don't realize this will struggle to remain relevant to the younger "point and click" generation. In our case, I think it's safe to say that this can no longer be "our fathers' GBC." Successful associations of the future will be those that can deliver services to their members through both cutting-edge technology and face-to-face visitations and programs.

I think GBC can and will be one of those successful associations. In the coming year we will focus on the theme of "Getting the Most Value from Your GBC/AGC Membership." This will closely align with AGC President Kelley's "Creating Value for America" theme and our new Strategic Plan. 

We must deliver the GBC value proposition to our Members and prospects clearly, concisely and more frequently than in the past using the best and latest technology and one of the most accomplished, competent and professional staffs in the country - a staff that truly understands our industry. 

We spend a lot of our time communicating the tangible value of membership, but we must also communicate better the intangible value of GBC and AGC membership and involvement - the things that you gain that you can't find in an informational packet or on a website: the networking, interaction, exchange of ideas, friendships, and business relationships that are the result of involvement. 

Also, it was clear from the strategic planning process that Members value highly the GBC's legislative and government advocacy but would like to see more results. However, we also listed one of our weaknesses as poor PAC participation. I am the first to admit that I have not been much of a PAC contributor. However, political contributions are a reality in this world. They allow better access, which can only improve chances for results. Even if we are resigned to playing defense, the GBC PAC is embarrassingly low for an association of our stature. We will be taking steps this year to improve this and I will be putting my money where my mouth is and hope you will do the same.

Finally, the GBC has a lot of underutilized capital out there in the form of past presidents. I will leave office at the ripe old age of 43! My hope is that we can establish a Past Presidents Council that can meet regularly to provide additional input and guidance on matters of the day and the strategic challenges of the association.

I'm excited, I'm ready - it's going to be a great year!


GBC Officers and Board - 2003-2004

OFFICERS

 
BOARD OF DIRECTORS (AT LARGE)

 
BOARD OF DIRECTORS

 
 
Thank You, Sponsors!
Our sincere thanks, once again, to the Sponsors who helped to make the Annual Meeting such a success. 

iSqFt

Barr & Barr, Inc.
Couch White, LLP
Ernstrom & Dreste LLP
Fuller & O'Brien

Citnalta Construction Corp.
William H. Lane, Inc.
LeCesse Construction Company
Massa Construction, Inc.
DiCerbo Associates / Northwestern Mutual
Gresens & Gillen, LLP
Hartford Fidelity & Bonding
Melvin & Melvin, LLP
Postner & Rubin
Rose & Kiernan, Inc.

AGC Meets in New York State
In late June, New York State hosted the AGC's Building Division for a five-day event at Lake George. All the various committees in the Division met, including Project Delivery, Industry Relations, Contractor/Subcontractor Relations, AIA Liaison, and the AGC's Private Industry Advisory Committee. Several GBC Members attended the event. There was much of value. 

The highlight of the meeting was a long conversation with several private owners representing Intel, Johnson and Johnson and Target concerning their use of reverse auction bidding. There has been much curiosity and some experience by contractors with this process. AGC has spent some time looking at the issue. It was clear that the private clients plan to continue to use this process, but some of them also know it may not be appropriate for general construction or construction management services. However, it may be appropriate for procurement of elements of a project, especially those that might be termed a commodity in nature. GBC will sponsor a seminar in the fall on this subject.


Federal Appeals Court Supports DOL on Annualization 
For several years there has been serious controversy on the issue of how prevailing supplements or benefits were to be treated. The NYS Department of Labor has had a regulation they have aggressively sought to enforce in recent years that required the annualization of supplements on private as well as public work. This especially impacts open shop contractors and subcontractors. It also impacts several general contractors who may be responsible for the underpayments of their subcontractors who may be exposed. In a case called Rondout (a Hudson Valley electrical contractor), a lower Federal District court judge last year declared DOL's annualization rule to be pre-empted by the National Labor Relations Act. The Federal Court of Appeals this week reversed that ruling and found DOL's rule to be okay.

What does this mean for the future? We do not know yet. GBC has initiated a partnering process with the Commissioner of Labor to improve communications with DOL and obtain a clearer understanding for the Members and the industry on what to expect in a host of areas to include this one. Contractors need to know what the rules are. In terms of pending investigations and withholdings, we cannot answer, but we shall try to get a better understanding of that also. One thing is sure, if you are not signatory to a collective bargaining agreement and you pay your supplements in cash you will be all right. That may be expensive and is not in the best interest of the employee, but it is safe. 


Proposed WC Rate Increase Rejected
The NYS Superintendent of Insurance this week rejected the New York Compensation Rating Board's request for a general 11% increase in workers' compensation rates effective October 1, 2003. The Board is a group representing private carriers that collects data and proposes new rates annually for the Department's consideration. There has not been any significant increase in rates in several years, and the carriers believe recent loss experiences now justify one this year. The Superintendent does not. There will be an assessment increase from 13% to 14.3%, but that is separate from the proposal for a general increase. We're led to believe there may be a Board effort to file for a more modest general increase. 

After the rejection, one insurance group predicted in a press release a flight from the New York market of many private carriers (sound familiar?) if they are unable to recover what they believe to be their legitimate costs. More to follow.


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