THE PROFESSIONAL WINTER 2011
A Publication of the Associated Subcontractors of Massachusetts, Inc.
Mass. Subcontractors Project of the Year – East Find Bright Spots Genzyme in Project of the Slow Year – West Recovery Springfield College Meet the New DCAM Commissioner Carole Cornelison
THE PROFESSIONAL
A Publication of the Associated Subcontractors of Massachusetts, Inc.
cover story 16 Recovery is Slow, The Massachusetts economy and the construction industry appear to have entered But Some Sectors a recovery that’s been under way Are Booming Again for over a year. features 04 PRESIDENT’S VIEW 12 Bidding Year in Review Understanding the Variables of Successful Bidding 06 Beacon Hill Spotlight Meet Carole Cornelison, 14 Marketing and Pr DCAM Commissioner 3 Secrets Most Social Media Marketers Won’t Tell You 08 REO Court Invalidates Fall River 20 Project of the Year – east Responsible Employer Genzyme Ordinance 22 Project of the Year – West 10 Insurance Springfield College Purchasing Contractors’ Pollution Liability Coverage departments 24 Photo Gallery Member Projects 2011 28 Member News
The Professional Contractor 3 PRESIDENT’S VIEW By David G. Cannistraro Year in Review very year, this issue of The Professional Contractor fast-track rebuilding of Springfield College dorms devas- gives us an opportunity to look back at the year just tated by the June tornadoes. Both projects show project Epast, to comment on changes and showcase achieve- teamwork at its best. ments, and to look forward to the new year ahead. No recap of 2011 would be complete without men- This is now the fourth year this column has acknowl- tioning the one-year anniversary of the Massachusetts edged the down economy, and its major impact on Prompt Pay law, which took effect in November 2010. construction. Little did we know back in fall 2008 how Although the law may not yet be fully tested after just a enduring the recession would be. But the difference in year, it appears the industry has adjusted, and we hear 2011 is that the signs of rebound are growing – notice- no complaints. Let’s hope no news is good news! Now able even in my small metro-west neighborhood, as I it’s time to address the big piece missing from Prompt wrote about in the last issue. Despite stock market swings Pay: fair terms for payment of “retainage.” That is ASM’s that continue to shake confidence, business continues to legislative priority for 2012, and we look forward to improve locally – which, for construction, means there is working with our industry partners on a solution that now more work to look at and bid on. Not office towers is fair to all. yet, and probably not for a while. But certainly apart- In 2012, we’re also looking forward to becoming one ment towers, academic buildings, medical and biotech of the first “health group purchasing cooperatives” – facilities. And to hear our local commercial real estate also known as the association health plan – in the com- pros tell it, there are more on the way – very good news monwealth, under legislation that coincidentally passed for the new year. Read more in our cover story, page 16. the same day as Prompt Pay. ASM is in the final stages Before we leave 2011, we want to acknowledge some of application to be a cooperative, and we look forward of the great work done by ASM members on projects to receiving our approval and helping members save on across the state this year. See our “Year in Review” in the costs of health care. We’ll have more on this in our photos on page 24. And don’t miss our two feature sto- next issue. ries, Project of the Year – East, focusing on Genzyme’s In the meantime – please enjoy this issue, which also new Biologic Support Center in Framingham, and features an article on new directions at DCAM, under Project of the Year – West, documenting the amazing new Commissioner Carole Cornelison; an article ex- plaining the decision striking down Fall River’s Respon- David G. Cannistraro is executive vice president of J.C. sible Employer Ordinance; and substantive articles on Cannistraro LLC in Watertown, and president of ASM. He business accounting issues and insurance. As the saying can be reached through ASM at (617) 742-3412 or by email at goes, there is truly something for everyone – just what [email protected]. we strive to offer at ASM. s
The Professional Contractor is published by
The Associated Subcontractors The Warren Group of Massachusetts, Inc. Chairman Timothy M. Warren CEO & Publisher Timothy M. Warren Jr. One Washington Mall | Fifth Floor | Boston, MA 02108 President David B. Lovins tel 617-742-3412 | fax 617-742-2331 Group Publisher & Editor in Chief Vincent M. Valvo [email protected] | www.associatedsubs.com Finance & Administration Dir. of Operations | Controller Jeffrey E. Lewis Officers Editorial J.C. Cannistraro, LLC President: David G. Cannistraro Custom Publications Editor Christina P. O’Neill President Elect: Richard R. Fisher Red Wing Construction Associate Editor Cassidy Norton Murphy Vice President: Joseph H. Bodio Lan-Tel Communications, Inc. Vice President: Steven P. Kenney N.B. Kenney Co. Advertising Vice President: Gregory A. Porfido Mark Richey Woodworking & Design, Inc. Publishing Division Sales Manager George Chateauneuf Treasurer: Russell J. Anderson Southeastern Metal Fabricators, Inc. Account Manager Mark Schultz Stafford Construction Services, Inc. Past President: Sara A. Stafford Advertising, Marketing & Events Coordinator Emily Torres Past President: Scott H. Packard Chapman Waterproofing Co. Design & Production Directors Creative Director John Bottini George A. Allen Sr. | Steven T. Amanti | Clement P. Clare | R. Lindsay Drisko | Roger A. Fuller Senior Graphic Designer Scott Ellison William M. Gillespie | Wayne J. Griffin | Robert B. Hutchison | Dana E. Johnston Jr. Graphic Designer Ellie Aliabadi Michael S. Kosiver | William J. (Mac) Lynch | Susan Mailman | Erik S. Maseng James B. Miller | Louis J. Sannella | Nancy H. Salter | Ann T. (Nancy) Shine | Frank J. Smith ©2011 The Warren Group, Inc. and Associated Subcontractors of Massachusetts, Inc All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any form or by any Lee C. Sullivan | Carolyn M. Francisco, Counsel | Monica Lawton, CEO means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher.
4 Winter 2011 8713-REconnection.qxd:Layout 1 12/10/08 10:17 AM Page 1
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A&M Roofing Services, LLC 123 Tewksbury Street, Andover, MA 01810 Phone: 978-475-4500 • Fax: 978-475-8778 Web: www.amroofing.net Beacon Hill Spotlight By Debbie Swanson Meet Carole Cornelison, DCAM Commissioner
In the spring of this year, Carole Cornelison was ap- of agencies. We anticipate better services and cost efficiencies by having DCAM serve as the central pointed commissioner of the State’s Division of Capi- agency responsible for facilities management. A lot of my energy has been and will continue to be tal Management (DCAM), the agency responsible for used in that direction. major public vertical construction and real estate How will you do this? services for the commonwealth of Massachusetts. We’ve already begun the process by work- ing with a few agencies to undertake the facility ornelison embraces this role, drawing upon management function of their newly constructed her lengthy history working at the executive buildings. I’m pleased to mention that Secretary Clevel in the public, non-profit, and private Gonzalez and I have convened the Common- sectors. wealth Facilities Advisory Council – a group of 41 Her career began in Cincinnati, Ohio, where experts from around the state, the private sector she worked in the health field, in housing and and labor to draft a blueprint to guide us as we economic development, as a college teacher, and continue the effort. in management consulting. She joined Boston’s We’ll also provide technical assistance to look Department of Neighborhood Development in at the management team in facilities under our 2004, where she first served as deputy director of responsibility. We’d like to see changes focusing homeowner services and then as deputy director on teamwork and customer service. I’ll also be tak- of housing development. ing a hard look at our own internal processes. It’s In 2008, Cornelison became the superinten- not only important that we provide the appropri- dent of the Bureau of State Office Buildings. As ate budget and management oversight, but that such, she managed a portfolio of buildings includ- the services are provided in a timely fashion and ing the Massachusetts State House, the McCor- are consistently delivered at a high quality in all mack, the Hurley, the Lindemann Mental Health facilities. Center, and the Springfield and Pittsfield state of- fice buildings. Any other changes in the future? In her role as DCAM Commissioner for the With the economic situation across the country commonwealth, Cornelison will play a major part and the commonwealth, we need to be more fru- in Gov. Deval Patrick’s plans to improve the man- gal with taxpayer resources. We have instituted a agement of state facilities, support job creation, program to make business process improvements advance the use of renewable energy, and provide at DCAM similar to those used in corporate Amer- world class higher education institutions in Mas- ica to provide services in a more efficient way. If sachusetts. we can save processing time, especially in construc- ASM had the pleasure of interviewing Corneli- tion, time is money. son and hearing her thoughts on her new role and changes at DCAM. What are some of your goals? I want to continue the exceptional record of What changes will you be making at DCAM? vertical construction that is the DCAM reputation. I’ve been charged by [Secretary Jay] Gonzalez I want to go beyond that record to initiate a con- and the governor to move forward on the con- solidated facilities management and maintenance solidation of facilities management. We have over approach to preserve the commonwealth’s assets. 5000 active facilities in use, managed by a variety In the forefront, I want our work to produce jobs.
6 Winter 2011 It’s important to me to increase oppor- ences are sometimes the slowest part, for 10 years. This allows agencies tunity for greater small business partici- but once references and the required across the commonwealth to enter pation. documents are in place, we can turn their maintenance needs and check My goals also include taking more it around quickly. [If there are prob- the status of service requests. We can steps toward energy efficiency. Accord- lems], we’ll meet face-to-face to help use it to track deferred maintenance. ing to Executive Order 484, Lead by a contractor improve so they can We’re currently in the process of Example – Clean Energy and Efficient become certified. selecting a new firm for an updated Buildings, we’re looking at all build- Once a contractor is certified, system, so we can expand this use ings to be cleaner and more energy ef- there is a review process for renewal, across the state. ficient, both in new construction and to make sure they remain in good existing. We want to reduce the com- standing. What is your outlook on the future? monwealth’s carbon footprint. I’m optimistic about improving We’re doing wonderful things at our What technology has DCAM been our ability to manage capital assets, state colleges and universities around using to streamline its methods? finding the best ways to do things, energy. At North Shore Community DCAM had been using BIM prior saving money, and turning [DCAM] College, the construction is complete to my arrival. The first BIM model into a first-class center of excellence. on our state’s first Zero Net Energy was helpful to the design in the State We’re committed to high quality stan- Building. This is a $34 million dollar House master plan, which is a com- dards and a much improved focus on project housing their Allied Health plex facility. BIM has also been used customer service. DCAM is well on the programs. [As Zero Net Energy], the in the woman’s correctional facility way to achieving both goals. s building generates as much energy as in Chicopee, MA. it consumes. NSCC is expected to save On the facilities maintenance side, up to $100,000 annually in energy costs. we’ve used Capital Asset Manage- Debbie Swanson is a freelance writer. As we plan, design and construct ment Information System (CAMIS) projects around the commonwealth, we see the job activity. Although the amount fluctuates constantly, in the past year we have had as many as 1,200 Protection starts here trade workers employed on a single day at DCAM construction sites. We plan to ensure these jobs continue as a result of our efforts, and that there is equal op- portunity for access to them.
Does DCAM work with subcontrac- tors, and do you have any advice for those wishing to come on board? We do. The important thing is to go through the DCAM certification pro- cess. To take on any larger projects, and here. there is also an additional pre-qualifica- tion process. In conjunction with the Supplier Diversity Office, we have a certification DeSanctisDeSanctis InsuranceInsurance AgencyAgency unit that provides half day workshops Serving the Bonding and Insurance needs of the to new businesses who want to do work N.E. construction industry for over 35 years. with us. The workshop explains the steps and documentation required in Adam DeSanctis Gregory Juwa James Axon DCAM certification. It’s not required Miichchaaeell Carneney Wilder Parks Michael Gilbert to attend, but helpful. Bryan Juwa David Boutiette Paul Patalano Dick Caruso
How long does the certification DeSanctis Insurance Agency, Inc. process take? 36 Cummings Park About two to four weeks. Refer- Woburn, MA 01801 (781) 935-8480 www.desanctisins.com
The Professional Contractor 7 REO By Emanuel N. Bardanis, Esq. and Kathryn R. Lynch, Esq. Court Invalidates Fall River Responsible Employer Ordinance
any cities and towns have responsible employer tion projects within Fall River that were funded by the ordinances (REOs), also known as responsible city, or by any federal grants or loans. Mcontractor ordinances. REOs establish employ- During the pendency of the case, Fall River volun- ment-related requirements for contractors and sub- tarily repealed the REO and argued the case was thus contractors working on public projects within the city moot and should be dismissed. The court disagreed, or town. REOs vary from city to city and town to town, partly out of concern that Fall River would simply re- and often include requirements that contractors and instate the REO after dismissal. Fall River next chal- subcontractors maintain a bona fide state registered lenged the plaintiffs’ ability to bring the action be- apprenticeship program, maintain certain health, cause neither Walsh nor UCANE’s members bid on welfare and retirement coverage and hire local resi- the project at issue. The court rejected this argument dents to work on the project. also, and found that the plaintiffs had standing be- REOs have been challenged on various state and cause the REO provisions deprived them of the ability federal constitutional grounds as well as federal statu- to compete on equal footing in the bidding process, tory law. Recently, the U.S. District Court of Massa- thus discouraging them from bidding. chusetts found that the city of Fall River’s REO vio- Having thus cut through the procedural wran- lated the U.S. Constitution and the federal Employee gling, the court invalidated the REO on three substan- Retirement Income Security Act (ERISA), as it con- tive grounds: tained illegal provisions regarding residency require- Residency requirements – The Fall River REO ments; furnishing pension, hospitalization and medi- required that 100 percent of the apprentices and 50 cal benefits; and apprenticeship requirements. percent of all other workers on a project be Fall River residents. The court found that the residency require- Background of the Litigation ment violated the Privileges and Immunities Clause The challenged provisions of the Fall River REO of the U.S. Constitution1 because it discriminated included requirements that 100 percent of appren- against out-of-state workers by depriving them of the tices and 50 percent of all other workers for any con- right to seek employment on Fall River projects. The struction project be Fall River residents; contractors REO also put bidders who did not employ mostly Fall furnish pension/annuity plans and hospitalization River residents at a severe disadvantage, as they would and medical benefits for all employees on the proj- be forced to spend time, effort and resources trying to ect; and all contractors maintain and participate in an recruit Fall River employees prior to bidding. active apprentice program that is approved by Massa- While the right to employment is protected under chusetts, has been in existence for at least three years the Privileges and Immunities Clause, not all state and prior to the bid date, without suspension, and has municipal laws that discriminate against out of state graduated at least two apprentices per year. citizens for such protected privileges and immunities The plaintiffs, Utility Contractors Association of are automatically unconstitutional. To justify a dis- New England, Inc. (UCANE), along with W. Walsh criminatory law, the state, city or town has the burden Co., Inc., and an employee of Walsh, sought a deter- to show that it had a “substantial reason” to treat out mination that certain provisions of the Fall River 2010 of state citizens differently from in state citizens. The REO were unlawful. The REO applied to all construc- “substantial reason” must meet the very high standard of proving that out of state residents constitute a “pe- Emanuel N. Bardanis is a partner and Kathryn R. Lynch is an culiar source of the evil”2 that the proposed law will associate at Corwin & Corwin LLP, one of the oldest law firms in address.3 The court found that Fall River failed to of- New England, dedicated solely to construction law, and counsel to fer any justification for the discriminatory treatment ASM since 1950. They can be reached at ebardanis@corwinlaw. of out of state citizens that resulted from the Fall River com or [email protected], or at (617) 742-3420. residency requirement.
8 Winter 2011 Mandatory health and pension provisions – the court also The appeal period is still open; however, the court en- determined that the REO violated the provisions of ERISA. joined Fall River from enacting or enforcing the provisions In general terms, ERISA is a federal act that establishes stan- of the 2010 REO or any similar REO during any appeal. dards and requirements for employee benefit plans. A plan While each REO has its own set of requirements, this deci- is considered an “employee benefit plan” under ERISA if its sion sheds some insight on what municipalities may or may purpose is to provide benefits, among others, of medical, dis- not mandate with respect to residency, employee benefits ability, death, unemployment, vacation, retirement income, and apprenticeship. s or apprenticeship programs. ERISA preempts almost all state laws that “relate” to an ERISA employee benefit plan.4 The 1 The Privileges and Immunities Clause of the U.S. Constitution protects Fall River REO mandated that contractors and subcontractors against discriminatory treatment of out of state citizens for certain pro- provide employees with pension/annuity, hospitalization and tected privileges and immunities such as the right to possess property, medical benefits. The court found the REO violated ERISA travel, pursue a livelihood, and receive protection from the state govern- because it required contractors to provide employee benefits ment. that clearly fell within the scope of ERISA benefits. 2 United Building and Construction Trades Council of Camden County and Vi- Apprenticeship requirements – the court determined that cinity v. Mayor and Council of the City of Camden, 465 U.S. 208, 218 (1984). ERISA also preempted Fall River REO’s apprenticeship pro- 3 The Privileges and Immunities Clause test comes from the Supreme gram requirements. ERISA preempts any state law that “re- Court case, Toomer v. Witsell, 334 U.S. 385, 398 (1948). lates” to apprenticeship training programs. The REO clearly 4 Some state laws that deal with state insurance, banking or security laws, related to an ERISA apprenticeship program as it mandated applicable criminal laws, and domestic relation orders are not preempted that all contractors and subcontractors have a state-approved by ERISA. apprenticeship program that had been in existence for at least 5 In support of its apprenticeship requirement, Fall River tried to rely on three years prior to bidding, from which at least two appren- another case involving a California state law which allowed contractors to tices per year graduated, and that met the REO’s residency re- pay lower wages to participants of a state-approved apprenticeship pro- quirements for apprentices. Since the REO demanded a spe- gram. California Div. of Labor Standards Enforcement v. Dillingham Construc- cific apprenticeship program5, it was invalid and preempted tion, 519 U.S. 316 (1997). Unlike the Fall River REO, the California law by ERISA. The court noted the REO apprenticeship program in Dillingham did not relate to an ERISA apprenticeship program because continued to require the hiring of Fall River residents, and it did not require contractors to hire workers from approved apprentice- was thus unlawful on that ground as well. ship programs.
The Professional Contractor 9 Insurance By Bernard K. Quinlan, CPCU, CIC, CRM
Purchasing Contractors’ Pollution Liability Coverage
nderwriters of commercial gen- requests or demands by a governmen- eral liability (CGL) and umbrella tal agency to “test for, monitor, clean U liability insurance for contrac- up, remove, contain, treat, detoxify or tors have limited or totally eliminated neutralize, or in any way respond to, or insurance coverage for bodily injury assess the effects of pollutants.” “Pollut- or property damage arising from the ants” are defined as “any solid, liquid, “discharge, dispersal, seepage, migra- gaseous or thermal irritant or contami- tion, release or escape of pollutants.” nant, including smoke, vapor, soot, Additionally, these policies do not pro- fumes, acids, alkalis, chemicals and vide coverage for costs associated with waste.” To eliminate any gray areas that might be interpreted in favor of the in- sured contractor, exclusions for fungi Bernie Quinlan is a principal with Sullivan Group in Needham, Mass. He can be reached at or bacteria, silica, and asbestos are typi- (781) 514-1331 or [email protected]. cally endorsed to your policy! The contractor has several options to address the significant financial loss exposure presented by these policy ex- clusions/limitations: ® Pavilion and Treat-Proof is your • Convince your underwriter to amend the CGL and umbrella poli- solution for moisture control cies to provide pollution coverage. Highly unlikely. ® Treat-Proof is an integral moisture barrier (waterproof- • Retain the risk (self-insure). This ing) solution for all sub-fl oor concrete applications. It is probably not a good option for prevents water and other harmful agents from entering most contractors. or moving through your concrete. • Contractually transfer the risk to Treat-Proof ® is the most economical solution you can the owner or GC. Good luck! use on wet sub-fl oors because it is only applied once • Transfer the risk to an insurance and lasts for the life of the concrete. It is safe, cost ef- company through the purchase fective, easy to apply and completely non-toxic, making of contractors pollution liability it perfect for projects requiring a fast track system that (CPL) insurance. allows permanent results and early site access with mini- mal site disruption. All Pavilion project managers and The contractor who carries pollu- installers are fully certifi ed in the use of Treat-Proof ® and tion liability insurance enjoys the fol- ready to help solve your moisture problems. lowing benefits: • Broad insurance coverage and lim- its distinguish a contractor from Pavilion Floors competitors. Having a CPL policy 90 Commerce Way Woburn, MA 01801 may help you secure work. Ph: 781.933.8500 Fx: 781.932.8844 • Some projects require CPL cover- E: info@pavilionfl oors.com www.pavilionfl oors.com age as a prerequisite to bid. You may find that purchasing project- specific insurance (which is avail- 4611 able) is as expensive, or almost as
10 pavflrs_pc_thirdpg_11-14.indd Winter 2011 1 11/14/11 10:47:39 AM expensive, as having an annual poli- claim is presented, not the date that the • Coverage for additional insureds, cy that covers all your projects. pollution incident occurred. such as owners and general contrac- • Surety underwriters may consider CPL is a non-standard coverage. That tors a contractor with broad insurance is, each insurer may offer significantly • Underground storage tanks coverage to be a better financial different coverage terms and condi- • Professional liability risk. tions. CPL policies usually include cov- • Terrorism • Peace of mind that a significant fi- erage for legal liability for bodily injury, nancial exposure is addressed. property damage, and clean-up costs at Contractors who purchase CPL insur- jobsites, and emergency response costs. ance transfer a substantial financial risk Some of the well-known underwrit- Coverage for the following expo- and may achieve a competitive advan- ers of CPL Insurance are AIG/Chartis, sures may be optional, either included, tage. However, due to the non-standard ACE, Arch, Chubb, CNA, Evanston, excluded or available by endorsement: nature of coverage, and the wide varia- Liberty Mutual, Philadelphia, XL and • Microbial matter (mold and fungi) tion in coverage terms and conditions Zurich. Coverage is available on either • Waste disposal liability for transpor- available, they should choose a policy “occurrence” or “claims-made” basis. tation and at waste disposal sites carefully. Work with a competent insur- “Occurrence” coverage is typically pre- • Legal liability for bodily injury, ance professional and evaluate several ferred, and most commercial general property damage and clean-up costs alternatives before selecting an under- liability policies are issued on this basis. at the contractor’s premises writer. As with every product or service Coverage applies based on the date of • Operations performed by subcon- you utilize, the least expensive CPL poli- the occurrence. Coverage for a “claims- tractors on behalf of the insured cy is not necessarily the best. s made” policy applies to the date the • Completed operations
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The Professional Contractor 11 Bidding BY Salvatore P. Falzone Jr. Understanding the Variables of Successful Bidding Part Two: Determining Your True Break-Even Point
s discussed in the first part of this series The( • Fold up the tent and retire, or do something Professional Contractor, September 2011), suc- else Acessful bidding comes down to a clear under- • Hire a better sales team standing of a few important elements – costs (both • Merge with a competitor fixed and variable), overhead and a company’s • Expand into a new or related market true break-even point. • Focus on a niche that promises better margins We began by examining the concept of “mixed • Understand and apply the principles of achiev- costs” and their role in producing more accurate ing break-even, if only to make a more in- bids. Now let’s delve into the importance of accu- formed decision about the other options rately determining break-even, setting a realistic gross profit margin, and then factoring these num- To understand a company’s true BEP, we must bers into bids that will win future business. first understand what its real “fixed overhead” is. It’s interesting to see that even though the con- Once that has been established, we need a plan struction industry is in the midst of a prolonged that will provide the company with enough “con- downturn, some contractors seem to be holding tribution to overhead” to cover the fixed overhead their own, and a few are even prospering. Cynical nut. observers might say that it is merely a race to the Below is a table that illustrates a business that bottom – that those chasing low-margin jobs will has already segregated its mixed costs and elimi- eventually be out of business. Yet we see compa- nated what management found to be non-essen- nies that do the work at lower margins and are do- tial overhead. If you missed the earlier article on ing fairly well. mixed costs, it is important to know that break- One factor could be that the struggling busi- even analysis requires that you are clear about the nesses don’t really know their break-even point concepts of variable costs and fixed overhead to (BEP). Nor have they done the analysis to deter- the point where you can segregate any mixed costs mine what their true fixed, variable and mixed into the two components. The first column and its costs are. (Perhaps after reading my earlier article, related percentages represent such adjusted profit such cost analysis has been done). and loss. Owners already know intuitively that if they are Once all mixed costs are appropriately appor- not making a profit, they must either (a) get more tioned, the formula is very simple: Fixed overhead business, (b) make more money on the jobs they divided by contribution to overhead. Here, we already have, or (c), do a combination of both. Yet have $400,000 of total fixed overhead. With a con- too many of them fail to challenge the underlying tribution to overhead of 35 percent, break-even math they used to formulate the bids that ultimate- sales becomes $1,142,857, which is calculated by ly proved unsuccessful. dividing the $400,000 of overhead by the 35 per- So what options does the owner have? cent contribution to overhead. • Keep doing the same and hope for the best Ah, but if it were only that simple to put into (not recommended in this economy) practice. In reality, it may be very difficult today to obtain enough additional work at a 35 percent Sal Falzone is a partner in the Boston area accounting and contribution margin to increase volume by 43 per- business advisory firm Rucci, Bardaro & Barrett PC, whose cent ($342,857 divided by $800,000). If you cannot Construction Business Services Group offers business, financial reduce your overhead to achieve break-even, you and strategic planning advice to companies in transition. He can may have to reduce your pricing to get the extra be reached at (781) 321-6065 or [email protected]. work.
12 Winter 2011 BEP with Break-Even Point reduced Adjusted (BEP) overhead Sales $800,000 100% $1,142,857 100% $971,429 100%
Variable Costs Cost of materials 160,000 20% 228,571 20.0% 194,286 20.0% Direct labor 360,000 45% 514,286 45.0% 437,143 45.0% 520,000 65% 742,857 65.0% 631,429 65.0%
Contribution to Overhead
280,000 35% 400,000 35.0% 340,000 35.0% Fixed Overhead Indirect labor 200,000 25% 200,000 17.5% 170,000 17.5% Other overhead 200,000 25% 200,000 17.5% 170,000 17.5%
Total Overhead 400,000 50% 400,000 35% 340,000 35.0% Profit (Loss) ($120,000) -15% $0 0.0% $0 0.0%
To keep things simple in the illus- tration above, let’s assume that the $800,000 is already signed on, and rep- resents your company’s backlog of work. If you were to reduce your pricing by 10 percent on only the new bids, you would divide the $120,000 of remaining overhead (the “loss” not covered by the $800,000 backlog) by the contribution to overhead to be realized on such ad- ditional new work. Be aware that when We know there’s more on your mind dropping pricing by 10 percent to win the additional work, the variable cost percentage increases: what was a 35 per- than the safety of a building alone. cent contribution would become a 27.8 percent contribution with a 10 percent cut in fees. So your break-even volume Construction is a business where risk is around every corner. You need would have to be $1,231,655 (a scenario an insurance company that understands that. Not just from an insurer’s perspective, but from yours. Acadia. We’re closer to your business. Visit not illustrated in the table). acadiainsurance.com or contact your local independent agent for more [If you do not follow this increase in information about the ASM Safety Group and Dividend potential. variable cost percentage, try this. Simply calculate what it would be on the in- house $800,000 if you dropped pricing by 10 percent to $720,000. You would have the same $520,000 in variable costs, but yield only $200,000 in contribution Maine • Connecticut • New Hampshire • Massachusetts • New York • Vermont to overhead which, when divided by
continued on page 15
ACAD-0137 ASMAD4.75x4.75.indd 1 12/16/10 3:53 PM The Professional Contractor 13 Marketing and Pr By Tom Palange 3 Secrets Most Social Media Marketers Won’t Tell You n the last issue of this publication, a strong case was Manage Your Expectations made in support of contractors entering the brave Creating a corporate Facebook page or Twitter feed Inew world of social media. There are staggering for the sake of being trendy rarely yields results. Success- statistics that show the popularity of platforms such ful use of social media tools requires substantial time and as Facebook, Twitter and Linked In, and there is no effort. Some companies, mostly large corporations, are question that many of the major players in the busi- hiring full-time social media coordinators to augment ness world are getting in on the fun. The fact remains their marketing and public relations departments. In however, that social media is still relatively new and un- the wake of the recessionary marketplace, however, most familiar, and the construction industry is not exactly construction professionals have already taken on added known for being an early adopter. As you decide wheth- responsibilities and have minimal time for tweeting. er or not your firm is ready and willing to embrace so- It is important to set reasonable expectations for cial media, consider the following suggestions that are the success of your campaigns before jumping into the often overlooked: social network. When implemented properly, social media tools can foster relationships, add online pres- Social Networking is Not Limited to ence and build brand awareness. In order to succeed, Web-Based Interaction managers must set goals for their social media initia- It is no secret that general contractors and construc- tives, think about which employees are best suited for tion managers do not assemble project teams based social media responsibilities, and be willing to give upon a subcontractor’s total number of Facebook them the time to succeed. friends. The true value of social media in construction, or in any other industry for that matter, is the added Content Always Matters ways in which bonds can be formed between a firm and Social media success is not instantaneous. It takes its clients. When it comes to making a first impression, time to build a network because your network needs to however, social media tools still cannot compete with a know it can trust you to provide value. Unlike tradition- handshake and eye contact. al mass media, social media users are not captive audi- Construction is largely a service industry that relies ences. Twitter followers, Facebook friends and LinkedIn on human interaction. A client is more likely to remem- connections can opt in or opt out of a relationship with ber your face and a story you shared with them at a ease, and will do so if they find a company’s content to networking breakfast, than a one-time mention of their be inaccurate, boring or otherwise unimportant. Twitter handle. Successful social media marketers sup- Aside from total number of connections or fol- plement their networking skills with carefully planned lowers, it is easy to identify a true social media ma- social networking skills. LinkedIn, for example, is be- ven. Power users make the most of their 140 Twitter coming an increasingly popular communications tool characters by engaging their followers with statistics, for following up on new contacts. Some professionals anecdotes and links to interesting articles. Retweeting are going as far as referencing a LinkedIn profile on the content of others also goes a long way in validating their business cards to encourage future online com- a user’s place in the Twitterverse. Successful LinkedIn munications. users join groups that are pertinent to their business or As wireless technology and cloud computing re- industry and get immersed in conversations. Compa- shape the way companies do business, it becomes nies with popular Facebook pages offer exclusive con- increasingly important to find balance between our tent or incentives that drive users to “like” their brand. methods of communication. There is a human aspect of social media to con- sider when developing content for Twitter, Facebook and LinkedIn. Behind every brand is a group of Tom Palange manages all marketing and public relations people that are reading, sharing and reacting to so- functions for J.C. Cannistraro, LLC, including the firm’s dynamic cial media content. Chances are that if your content social media initiatives. He can be reached via email at tpalange@ interests you, it probably interests those in your social cannistraro.com. and business circles. s
14 Winter 2011 Understanding the Variables of or extras (note, this is not referring to your ASM or other Successful Bidding business association memberships!) and you have a 20 per- cent contribution to overhead rate, it means that your BEP continued from 13 is $100,000 more than it should be. The same holds true for $720,000 is 27.8 percent, rather than the 35 percent contribu- someone you treat as overhead who is overpaid (as difficult as tion you would derive from the $800,000 in sales secured at that might be to accept). normal pricing.] This doesn’t mean that you cannot continue to carry such You’ll notice that the new break-even volume of $1,231,655 discretionary expenses. But to the extent that they exceed is even more than the $1,142,857. Now, instead of a 43 per- your competitors, you need to be careful not to lose bids be- cent increase in volume, this example calls for a 54 percent cause you are trying to cover overhead that may be excessive increase. At least with a 10 percent cut in fees, you can reason- in the new world order. ably expect to get a lot more work and hopefully achieve prof- Remember, as stated above, you are looking for your “true” itability. For any work you get over and above the $1,231,655 and “real” overhead costs. As shown in the table’s last column, BEP, 27.8 percent of it is pure profit. The real key is to oper- if you were to eliminate $30,000 from each of your two fixed ate above your true BEP. For those who aren’t sure what that overhead line items, it’s amazing to see how significantly your is, achieving profitability is an ever-elusive goal, especially in BEP drops. difficult times. Every business has its own unique circumstances, sensitivi- While the old adage “we’ll make up for it in volume” is ties and margins. I have used hypothetical margins here for often used as a punch line, the underlying business calcula- illustration. While I expect your breakdown to be different, tions are quite sound. The trick is to know your true BEP, and the concepts will not change. to ensure that your contribution to overhead is significant Many of you have multiple divisions or cost centers, which enough to haul in the additional work without totally disrupt- means that you are juggling more than one set of numbers. ing your business model and cost structure. But the analysis is the same. You do not have to possess all This is also a good time to address an item that may be the answers internally, but you do need to come to grips with buried in company overhead – discretionary expenses. If you these relatively simple concepts, even if it means shaking up SullGroupTPC 1/29/09 3:49 PM Page 1 are accruing “overhead” of, say, $20,000 in personal benefits your controller or getting outside support. s
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The Professional Contractor 15 Recovery is Slow, but Some Sectors are Booming Again By Jay Fitzgerald
The Massachusetts economy and A number of major area construction projects broke ground this the fall, seemingly defying the construction industry appear to have conventional wisdom that a double-dip recession was all but inevitable in the wake of the summer stock- emerged from this summer’s stock- market shocks. market volatility shaken by, but not Developers say they’re plowing ahead with other plans for construction projects, from new apartment deterred from, the slow recovery complexes within the Route 128 area to new life-sci- ences laboratories in Cambridge. that’s been underway for over a year. “You’ve still got pockets of [construction] activity
16 Winter 2011 going on around the state,” said Rob Griffin, the New England president of Cushman & Wakefield, the large commercial real estate company. “It’s not a booming environment. We still don’t have a clear view of where the economy is going, here in the Boston area or elsewhere. But we’re lucky to have some activity.” Commercial real estate and construction offi- cials say there’s no doubt the summer market gyra- tions – caused mainly by fears of a weakening U.S. economy and Europe’s debt problems – damaged confidence and injected a note of caution within industry circles. “It made everyone step back and say, ‘Wait a minute. What’s going on here?’” said Michael Roberts, vice president of development at Avalon- Bay Communities, the Virginia-based apartment building developer with strong ties to Massachu- setts. “Everyone gets nervous about these types of things.” Some economists were so nervous about the summer’s market volatility – which at some points resembled the bleakest days following the collapse of Lehman Brothers in 2008 – that they predicted a double-dip recession was all but a certainty. But something unexpected happened: Markets calmed down, and economic data later confirmed that the U.S. economy still managed to grow by 2.5 percent in the third quarter. The national jobs picture is still bleak: the un- employment rate remained stuck in the 9.1 per- cent range through the early fall. Yet the third-quarter GDP data suggested that the U.S. economy hadn’t derailed. Impressive stock market gains in October seemed to confirm a growing notion that another recession wasn’t necessarily in the offing. In Massachusetts, the news has been even more encouraging, though no one is comparing today’s As a result, industry officials say there are a fragile economy to the boom times of the 1980s, number of encouraging areas of opportunity for 1990s and last decade. the construction industry in Massachusetts – apart- The state economy grew by a surprising 3.9 per- ment buildings, life-science laboratories, college cent in the third quarter ending Sept. 30, accord- facilities, and health-care complexes. ing University of Massachusetts data. The state’s But there is little sign of a recovery in office, jobless rate stood at 7.3 percent in September, well retail and industrial construction, as slow jobs below the national average, according to the Mass. growth keeps demand for office and other build- Dept. of Labor and Workforce Development. ings down.
The Professional Contractor 17 rather well. The most high-profile life-science construction project is the new Ver- tex Pharmaceuticals headquarters building, now under way on Boston’s Fan Pier in the Seaport District. Harvard University, meanwhile, has signaled its desire to soon resume work on it mammoth Life Science Center in Allston, after mothballing the project soon after the Wall Street meltdown in 2008. There are a handful of other life- science construction projects under way in Cambridge, for institutions ranging from Biogen Idec to the nonprofit Broad Institute. The biggest surprise: an actual speculative project under construc- tion by Skanska Development, a unit of the giant Skanska Construction. The 120,000-square-foot lab building at 150 Second Street, in the Kendall There’s also not nearly as much by AvalonBay in Northborough – and Square area, doesn’t have tenants building activity in areas outside the now AvalonBay is eyeing yet another yet. But Peter Bekarian, senior vice immediate Boston area, raising con- 404-unit apartment project on Stuart president at Jones Lang Lasalle, said cerns about an uneven regional re- Street, near the Prudential Building he’s optimistic occupants will be covery. in Boston.“The apartment recovery found. JLL is the marketing agent for Here’s a look at some of the dif- really began about a year ago,” said the new facility. ferent construction sectors in Massa- AvalonBay’s Roberts. “The demand “It’s a fundamentally sound chusetts: is there.” He noted the market for move,” Bekarian said of starting con- apartment developments is helped struction on a speculative building at by low interests rates and stabilized this point. “The Boston economy is Multi-Family Residences commodity prices, at least for right improving a little, and the life-scienc- By far, the apartment-building now. es [sector] in Cambridge is definitely sub-sector is the healthiest construc- Jim Kelleher, chief investment strong.” Skanska has already starting tion field in Massachusetts. It’s not officer at the New Boston Fund, a clearing the site for the new lab facil- just healthy – it’s hot. real estate investment firm, said the ity, tearing down older buildings and At least a dozen major apartment- multi-family building market is quite getting other prep work done. building projects are now under way strong, while other sectors remain a Construction within the life-sci- or close to development in the Bos- “completely different picture.” ences sector is a big boost for the ton area alone, from the 286-unit New Boston Fund is a partner in a economy, but it isn’t necessarily wide- Victor complex in the North Station plan to develop a new 345-unit hous- ranging enough to spur growth else- area to the 184-unit Maxwell’s Green ing project on Parcel 24, at the cor- where in the state. in Somerville. ner of Hudson and Kneeland streets, “If you go beyond Cambridge, it’s AvalonBay broke ground last in the Chinatown area of Boston. The not very encouraging,” said Cath- month on a new $100-million, 28-sto- ground breaking for the $130 million erine “Cappy” Daume, managing di- ry apartment complex on Exeter project is set for next year. rector of Boston’s Davis Cos., a real Street in Boston. The Avalon Exeter, estate investment, development and which is expected to create about management firm. 300 construction jobs, will have 187 Life Sciences apartment units. The life-sciences sector – which in- The Avalon Exeter project came cludes biotech, pharmaceutical and Office and Other Sectors on the heels of last year’s completion medical-device companies – has also The office construction market of a 382-unit apartment development withstood the economic downturn isn’t a complete disaster. After all,
18 Winter 2011 Liberty Mutual is plowing ahead with market is that recovery is now in prog- underway,” said Boston Redevelop- its plan to construct a new $300 mil- ress – but it’s slow and spotty in nature. ment Authority director Peter Meade, lion office building, along with 600 new The city of Boston’s construction referring to both profit and nonprofit jobs, in Boston. Developers have also environment is generally strong, con- institutions’ construction projects. recently started site work for a massive, sidering where it stood in late 2008 and But it’s a different story in other decade-long expansion of the North 2009. “It’s clear that the private sector parts of Massachusetts, where the recov- Park office campus in Burlington. And has confidence in Boston because there ery remains painfully slow or elusive, in- the Seaport District of South Boston are more than 30 development projects dustry observers say. s seems to be growing at a fast clip, in- dustry experts note. Jay Fitzgerald is a freelance writer. But outside of those projects, it’s not an attractive environment for office – as well as industrial and retail – construc- tion in Massachusetts. The problem: The demand for space is simply not there yet. Demand for high-profile “trophy” Does Class A buildings in Boston, inside Route 128 and near key I-495 areas is solid. But demand for Class B space is your simply not strong. Ominously, Boston’s Financial District, the very heart of the region’s financial industry, is still see- ing double-digit vacancy levels. CPA If building owners can’t even fill ex- isting office space, then there’s no way someone is going to step up to build a new office complex, unless it’s a special firm build-to-suit project for a large, high- credit-worthy tenant, officials say. “It’s going to take a while for any new [major] office construction,” said feel Vincent Cerbone, senior vice president of construction at Equity Office in Bos- ton. “Owners are very cautious right now. It could take three years or more like the for a recovery.” Still, Cerbone said there are a few encouraging signs of activity within the office market, as architectural and engi- right fit? neering firms gear up for major renova- tions of existing buildings. “Right now It’s surprising how many companies choose CPA firms that are either I see all sorts of renovation work being too large or too small for their needs. At Rucci Bardaro & Barrett, our teed up, but not new construction,” he clients in the construction business say we’re just right – big enough said. Another sign of hope: Area universi- to provide the specialized industry knowledge and advice they need, ties and hospitals have a number of con- yet focused enough to give them consistent, personal attention. If you’re struction project under way. Non-profit looking for a firm that will truly understand your business – and you – institutions tend to take advantage of economic slow times to start projects, contact Bill Rucci at when commodity prices and interest [email protected]. Or visit Certified Public Accountants and Business Advisors rates are usually lower, said Cerbone. www.rb-b.com/construction. THE RIGHT SIZE ACCOUNTING FIRM “They can negotiate great deals in soft markets,” he said. The bottom line for A MEMBER OF RUSSELL BEDFORD INTERNATIONAL WITH the entire commercial construction AFFILIATED OFFICES WORLDWIDE
The Professional Contractor 19 Project of the Year – East By Kristin Cantu Genzyme
down significantly on walking and driving time, has already paid off for Genzyme and its employees, many of whom were coming from warehouse office spaces without adequate conference rooms, cafete- rias or even windows. Rotkiewicz worked directly with the contractor for the Framingham building, Gilbane Building Company, a Rhode Island-based company whose main office is in Boston. It was his first time working with the company, and Rotkiewicz said he “has no regrets. They were competitively bid, interviewed and awarded the project.” One big reason Rotkiewicz is happy with the decision to hire Gilbane is because the project finished on time and under budget – a rarity. He is particularly proud not only that it was done on schedule and under budget, but also that “the de- sign was done to everybody’s satisfaction,” with little compromise. “We had some very good teams on the project and most of the subs were incredibly sup- portive and provided truly good quality work, and a good work environment. The whole collaboration fficiency is key and Genzyme, the Cambridge- was phenomenally well done.” based global biotechnology outfit, knows this Part of bringing it all in under budget was the E better than most. With 10,000 employees ability to “estimate and identify gaps in the project worldwide and revenues topping $4 billion last year, and make allocations for undefined work,” said Genzyme is nothing if not strategic about how its Shawn Shelley, Gilbane’s project executive. Budget business is run. That’s why in the fall of 2009 it be- approval went in with anticipated design issues, and gan construction on a 183,000-square-foot, $90-mil- as a result changes were minimal. lion biologic support center (BSC) in Framingham, The use of a 3D building information modeling which would bring a large number of its staff into (BIM) system was also key. “Normally on a job you one central location, allowing them to work more get into situations, but the nice thing about the BIM efficiently. [system] is it shows architects’ intent and defining “We have a few production facilities in Framing- details of how to get there,” Shelley said. “When we ham,” said Stanley Rotkiewicz Jr., Genzyme’s prin- actually built it, there was little to no rework. Every- cipal project manager. “We took all of the various thing fit like a dime, [just] like it was in the model.” laboratories and all support groups and brought All the subcontractors participated in the BIM them into one building. Having all the groups scat- system before going out into the field, Rotkiewicz tered in different buildings in different geographic said. The 3D modeling system allowed them to do areas wasn’t efficient.” more work in their warehouses than on site, help- The Framingham building, which was complet- ing increase efficiency. ed in July, brought 11 departments into one cen- The employees now housed in the BSC are tral location. While it’s hard to quantify how much pleased with the building’s outcome as well. “Every- efficiency has improved since building occupation body in the building is very satisfied with the layout in August, Rotkiewicz believes common sense dic- and its use,” Rotkiewicz said. It is an L-shaped build- tates that putting everyone in one building, cutting ing with one side (six stories) serving as office space and housing the cafeteria. The other side of the L is four stories of laboratories. Kristin Cantu is a freelance writer. While this building is a success story for every-
20 Winter 2011 one involved, the road leading there had certain challenges, including occa- sionally falling behind schedule. “There were a couple of contractors that slowed down their work and hence made other contractors have extra pains on picking up the pace,” Rotkiewicz said. But Gilbane dealt with those issues, brought subs in and had weekly meet- ings, forcing them to bring more peo- ple on site to manage the project and deliver. “I think [Gilbane] escalated to the highest level they could,” Rotkiewicz said. Boston-based J.C. Cannistraro man- aged the HVAC system for Genzyme’s new building. Dan Foley, Cannistraro project manager, said one of the most impressive parts about what they did was using chilled beams, which are becom- ing more popular in the engineering world. sors to maximize energy efficiency. Holliston-based Wayne J. Griffin Elec- The installation of this quieter system One of the trickiest project compo- tric. “We had to coordinate many shut was also helped by the BIM system. “We nents may have been the electrical in- downs to tie in the new facility and work were able to coordinate and incorporate stallation. The new building’s infrastruc- around Genzyme’s manufacturing pro- changes as we went,” Foley said, allowing ture had to be constructed so it didn’t cess,” he said. for “less field time and more real time.” interruptHIG.ProContractor one in an adjacent 1/31/07 building, 4:48 PM PageWhile 1 it was “ a pretty technical, dif- J.C. Cannistraro also used 100 per- said Tommy Lee, project manager with continued on page 30 cent outside air with a custom air han- dling unit with a heat wheel on this proj- ect. The heat wheels for the air handler FIVE STAR systems in laboratories are used for heat ##### recovery and the condensate from the air handlers are used for irrigation. Award of Distinction Hudson’s Longden Company fur- Three Generations nished and installed the raised access floors for the building’s data center, of People Protecting People using recycled content, regional and low-emitting materials, said John Long- den, president. The raised access floors were installed to allow for a hot aisle/ The Herlihy Construction Division cold aisle configuration of server racks, he said. General Liability Longden Company’s use of green Fleet Automobile materials is just one of the many factors Workers Compensation contributing to the project’s environ- Contractors Equipment mentally-friendly focus. Rotkiewicz has Bonding submitted the building for a LEED Gold Subcontractors Design E&O certification, which he believes it will Dividend Plans achieve. Group Health ENE Systems of Canton took charge of the automatic temperature control and the building management system control. It connects all the heating, ven- www.herlihygroup.com tilating and air conditioning equipment 888-756-5159 from the mechanical rooms to the indi- vidual offices, which have motion sen- 65 Elm Street, Worcester, MA 01609
The Professional Contractor 21 Project of the Year – west By Jackie Rafferty Springfield College
owner. Erland’s long-standing relationship with the college set the stage for a collaboration built on trust. The Springfield College project not only earned the respect of those key players involved with the project, it has also earned distinction as the Associated Subcontractors of Massachusetts’ Project of the Year – West. “The devastation at Springfield College was as- tounding and we were happy to help however we could to get the school up and running for the 2011-2012 school year,” said Tom Blesso, senior vice president and key account manager for Erland Construction. “I’m happy we’ve established the kind of relationship with Springfield College that they chose us when they needed help.” “Erland has a plethora of trustworthy subcon- tractors that we were able to call upon at a mo- ment’s notice,” said Blesso. “It was remarkable to see how the subcontractors came together, each bringing their highly-specialized talents and expe- rience to the table.” Roger Fuller of R&R Window Contractors was one of the first subcontractors to arrive on site. “ picture is worth a thousand words.” That “Springfield College was the first site I had ever in- would have been the thought of any bystander spected with tornado damage,” said Roger Fuller Awho happened by the campus of Springfield of R&R Window. “Solid and heavy doors solid were College on June 1, 2011. It was on that date that pulled inward, ripped right off their hinges and a rogue and devastating tornado touched down in leaving splintered door frames where they once western Massachusetts, battering homes, business- used to hang. Beds were extracted out of dorm win- es and delivering a particularly damaging blow to dows, with many finding their final resting place on the picturesque campus of Springfield College. Sit- lawns and in ponds. Wooden decks were lifted and uated on the shores of Lake Massasoit, the campus moved 15-20 feet from their origin. It was truly a consists of a state-of-the-art wellness and recreation sight I will remember for years to come.” complex, campus union, academic and administra- Admittedly, this was unfamiliar territory for tive facilities as well as 10 residence halls. Roger Fuller and the R&R Window team. Nonethe- Three residence halls, in particular, were se- less R&R Window jumped in with both feet without verely damaged. But in traditional campus style, once questioning budgets, contracts or timelines. within hours of the tornado’s devastation, the col- Many more subcontractors would soon follow suit lege’s administration, alumni, faculty and students – relying more on trust than contracts. banded together to begin planning the arduous The most challenging component of the Spring- tasks ahead. field College project was the expedited timeline. Due to the extent of the damage, the complexi- The most damaged residence hall on campus was ties of the project and the extremely tight deadline, also the largest. Compounding the stress, college Erland Construction was a natural choice for the administrators also feared that if the residence hall was not habitable and open for the student’s Jackie Rafferty is the public relations and marketing return for the fall term, enrollment would suffer. communications manager for the Associated Subcontractors With such extraordinary damage and so little time of Massachusetts. She can be reached at 617-742-3412 or by it was hard to imagine delivering the project on- email at [email protected]. time and on-budget, but that is exactly what Erland
22 Winter 2011 Construction and the teams of subcontractors were able to ac- complish. It was the impressive teamwork on the project that proved the key to success – with everyone from the project owner to the GC to the subcontractors, all coming together for the com- mon good of the project. Erland put together a project team based on trust and relationships, above all else, and did so with speed and precision. For instance, R&R Window had already assessed the site, taken measurements for windows and panels and had shop drawings compiled before they had even “bid” on the project or had a binding contract. The R&R Window team rallied their work force, manufac- turers and vendors and delivered a finished project in eight weeks, less than half of the time allotted under normal circum- stances. This was a shining example and true testament to the team work, dedication and resolution of entire project team. Harry Grodsky & Co., Inc. was the subcontractor of choice for the HVAC repairs and installation. “There was very little time for traditional planning,” said Dave Streeter, vice presi- dent of Harry Grodsky & Co., Inc. “Once the building surveys were completed, we immediately shifted into construction mode, driven by a very tight deadline that had to be met be- fore students could occupy the residence building. It was para- mount to the project’s success to find quality contractors and in the heart of the construction season. We overcame these obstacles through great relationships,” said Streeter. Encountering challenges on this project was par for the course. Getting buy-in from Erland Construction and the sub- contractors was only part of the process. Forging relationships and getting buy-in from manufacturers (from sheet metal to windows) was another daunting yet inevitable necessity of the project. Pre-construction negotiations and delivery schedules that normally took months suddenly had to meet nearly im- possible deadlines. Maintaining integrity and quality of materials was another challenge faced by subcontractors. If the manufactures could even meet the strenuous deadlines given to them, would qual- ity then become a casualty? To circumvent potential breeches in quality while maintain- ing a strict schedule, subcontractors had to reach deep into their resources and call upon the best manufacturers in the business. And there were more than a few logistical and me- chanical challenges that had to be met. R&R Window called upon Alcoa to manufacture the windows. The windows were said David Streeter. “This was a most impressive effort from all manufactured, shipped and arrived onsite by July 11 – just five of the suppliers.” short weeks from the date of the tornado. Additionally, Collins Electric Co., Inc. of Springfield per- Harry Grodsky & Co., Inc. also relied upon trusted partner- formed all of the wiring and electrical work for the project. ships with manufacturers and suppliers. Buckley Associates, The speed, accuracy and precision that it took to complete Tunstall Corporation and Trane were a major driving force in this project speak volumes to the integrity and commitment of advancing the scheduled and maintaining quality. “With just the construction industry in Massachusetts. Their collabora- one phone call, fans, a radiation panel and a compressor for tive efforts made Springfield College an easy choice for Proj- a 1970s condensing unit were all delivered within one week,” ect of the Year – West. s
The Professional Contractor 23 Photo Gallery Member Projects 2011
Every year, ASM members work on thousands of projects, both public and private, all across the region. Pictured are just a few of the projects proudly completed by ASM members in 2011.
1 2 Chapman Waterproofing Company (Boston)
1 2 3 4 Arlington Community Safety Building and Cusack Terrace (Phase I), in Arlington, Mass., are multi-story masonry buildings with an open-air terrace area, constructed in 1981 and suffering from leakage problems since they 3 4 were constructed. Chapman’s work included the installation of a waterproofing system with a liquid waterproofing membrane for use in protected and exposed areas.
5 6
DeAngelis Iron Work, Inc. (South Easton)
5 6 7 Harvard Memorial Church Full-height, double-swing gates were forged and faux finished to painstakingly mimic the existing 100-year-old iron work in the coinciding side 7 8 panels.
8 9 Titus Sparrow Park Over 450 linear feet of custom iron fencing was constructed, including custom finials, quatrefoils and flowers – all custom cast utilizing new pattern work.
9
24 Winter 2011 Photo Gallery
Frontline Inc. (Hopedale)
1 Genzyme, Framingham – Confined space work in manhole 2 Russian Wharf, Boston – High-rise window washing 1 2 3 UMass Hospital, Worcester – Demolition work 4 St. Aidens Church, Boston – Duct cleaning
Griffin Electric (Holliston) 3 4
5 Rhode Island Division of Motor Vehicles The 78,000 square foot renovated building features many earth-friendly attributes, high-efficiency systems and recycled materials. Griffin Electric was responsible for installing new power distribution within the building 5 6 including security and fire notification systems. 6 The Elliot at River’s Edge, a six-story ambulatory care center covering over 258,000 square feet and situated on 17 acres in Manchester, NH. Griffin Electric’s work included the electrical installation for the hospital and parking structures, including power 7 8 and lighting.
John W. Egan Company, Inc. (Newton)
7 8 Recoating LNG tanks – Distrigas of Massachusetts, Everett 9 10 Power Plant Stacks, Logan Airport, 9 10 East Boston The Professional Contractor 25 Photo Gallery – Member Projects 2011
Marr Companies (Boston)
1 2 3 Boston’s Spaulding Rehabilitation Hospital relied on Marr to erect 3,000 1 2 tons of steel, utilizing two tower cranes, while supplying the suspended and swing staging for exterior renovations.
4 Fenway Park, Boston Marr setting one of two main box columns – weighing 13 tons – that make up the steel frame for Fenway’s new scoreboard.
5 Boston Lobsters World Team Tennis, Ferncroft Country Club The installation of temporary bleacher seating for the 2011 World Team Tennis Tournament.
3 4
Pavilion Floors, Inc. (Woburn)
6 Saint Cecilia Parish, Boston, MA Features over 10,000 square feet of refinished vertical grain southern yellow pine floors in the church and rectory. 5 6
THE PROFESSIONAL
A Publication of the Associated Subcontractors of Massachusetts, Inc.
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26 Winter 2011 Photo Gallery – Member Projects 2011
Sanford Contracting (Billerica)
1 2 3 Whittier Street Health Center consisted of 20,000 square feet of panelized exterior walls with terracotta tile veneer 1 2 (shop applied). The building was shop fabricated, shipped and installed in less than eight months.
SVA, Inc. (Framingham)
4 Evergreen Solar, Devens 42-foot sound barrier walls erected to solve noise problems.
11-0234 Boston Cedar_Layout 1 7/11/11 11:10 AM Page3 1 4
The Professional Contractor 27 Member News
McCusker-Gill Inc. (Hingham) is pleased to announce that Kevin R. Gill, presi- dent of McCusker-Gill, was recently elected to serve as vice president for the Sheet Metal and Air Conditioning Contractors National Association (SMACNA). Kevin has been very active in the local Sheet Metal Association (Boston) and serves as a director of the Building Trades Employers’ Association (BTEA). He will become president of SMACNA in 2014.
1 Julian Crane and Equipment Corp. (Watertown) is proud to announce its spon- sorship of the Coastal Stars Youth Hockey team for the fourth consecutive year. Gregory Julian, vice president of Julian Crane, will serve as coach for his third year. Gregory led the team to a division championship in 2010 and looks forward to 1 another successful year.
2 Wayne J. Griffin Electric, Inc. (Holliston) is pleased to announce it raised over $25,000 for Special Olympics Massachusetts, by donating to the organization an Orange County Chopper the company had recently been awarded from Graybar. Special Olympics hosted a raffle of the motorcycle for Griffin employees, who raised over $25,000 to support the organization’s sporting activities for individuals with intellectual disabilities.
Pavilion Floors (Woburn) is pleased to announce its recent ex- pansion into the Worcester area market, with Mark Eldridge as account executive of the new office. “Worcester has been very successful in redefining its identity and reforging its urban façade into a dynamically growing region,” said Jamie Gilm- ore, president. “Pavilion realized the need that existed for its full range of contract flooring services and products. We look forward to providing the same legendary service enjoyed by Pa- 2 vilion’s Boston and Providence clients.”
3 General Safety Services (Dedham) recently launched its newest product line, HotEdge Roof Ice Melt, designed to prevent icicles and ice dams from forming on the edge of most roof structures. A low-cost, energy-efficient, aesthetically ap- pealing alternative to zig-zag heat tape, it is the newest innovation to be launched by General Safety Services. “After one of the worst New England winters in years, we wanted to take a proactive approach for the 2011-2012 season,” said Nardine Bellew, president and CEO. “As a WBE/SOMWBA certified company we take safe- ty very seriously. You could almost say it is our middle name.”
Sanford Contracting (North Billeri- ca) is pleased to celebrate 100 years of business. The Sanford family has been involved with commercial con- struction since 1911 and a member of ASM since 1957. Fast forward 100 years, Sanford has become one of the most re- spected subcontractors in the northeast. Sanford has built a reputation for respon- siveness, reliability and excellence as demonstrated through its impressive project portfolio including the Dana Farber Center for Cancer Care, Foxwoods Hotel and 3 Casino and Boston Medical Center – Shapiro Care Center.
28 Winter 2011 Member News
Associated Subcontractors of Massachusetts is pleased to announce that retired state Rep. David Flynn of Bridgewater was presented with the Legislator Lifetime Achievement Award. Known as the “Dean of the House,” Flynn retired this year after nearly 50 years of public service. During that time, he did much to ben- efit the construction industry in this state and was instrumental in the passage of the landmark Prompt Pay law just one year ago.
1 2 3 4 ASM members enjoyed an evening with the general contractors at the Westin Hotel in Waltham. The meet-and- greet event was a huge success and gave subcontractors a rare opportunity to meet with leaders from prominent Boston-area construction firms. s
1 2 3 4
Photo: (C) CLEMENTS-HOWCROFT, Boston
Mark Richey Woodworking crafts and installs high-end architectural millwork for corporate, institutional, retail, restaurant, and residential clients. Our reputation is founded on peak performance and keen attention to client satisfaction. www.markrichey.com
The Professional Contractor 29 Project of the Year – East: Genzyme continued from 21 ficult process [that] took a lot of weekends and nights,” Lee is proud of his firm’s work, which they couldn’t have accom- plished without the help of Gilbane’s dedicated electrical su- perintendent, he said. “We were able to meet on a regular ba- sis, have open lines of communication and really develop and implement a plan which followed pretty strictly of what to do and when and how to do it,” Lee said. “The success story of how we made this happen without any incidents was that we all worked as a team and developed an organizational chart at the beginning of the project that allowed that. It was good commu- nication skills all around.” One of the most interesting aspects of the electrical work may be the sophisticated daylight harvesting control system, Lee said. The building is mostly glass and a lot of outdoor light comes into the building. Sensors all over the building moni- tor the light levels, and the light fixtures can dim all the way down to off depending on light level, making it environmen- tally friendly. What else contributed to Genzyme achieving an under-bud- get, green building? “I think it was the economic times,” Rot- kiewicz said. “All the subs were very aggressive [about] getting a project because they were all running out of work. They all sharpened their pencils.” “I think that overall the team selected was the best bunch of guys – the A-team all around.” said Shelley. s Dedicated to Your Success
Salem State College, Orange Hall Salem, MA We view each job as a new opportunity to
make a lasting impression. Through professionalism, attention to detail, and quality craftsmanship Griffin Electric has earned praise from our clients, but more importantly, gained their trust and respect. We are proud of the long-term relationships we have built by staying dedicated to the continued success of our clients.
Corporate Headquarters: 116 Hopping Brook Road Holliston, MA 01746 (508) 429-8830 Regional Of ces: Charlotte, NC Raleigh, NC Duluth, GA Pelham, AL
MA Lic A8999 www.waynejgrif nelectric.com
30 Winter 2011 General Contractors · Trade Contractors · Homebuilders · Specialty Contractors · Surety
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