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building the SouthernTier Official Publication of the Builders Exchange of the Southern Tier 2021 Alfred State recognizes the work of Dr. William “Doc” Bruce through the naming of its soon-to-be renovated Civil Engineering Technology Lab Post-COVID: What’s the value of your construction company? BOCES/BEST partner to bring graduates into the construction industry
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In this issue building the Southern Tier is published by DEL Communications Inc. Message from BEST Director Brad Walters.................................... 6 Suite 300, 6 Roslyn Road Winnipeg, Manitoba 2021 Builders Exchange of Southern Tier Scholarships............... 8 Canada R3L 0G5 www.delcommunications.com Doc Bruce Construction Materials President & CEO Laboratory Renovation Project...................................................... 10 DAVID LANGSTAFF Managing Editor Post-COVID: LYNDON MCLEAN lyndon@delcommunications.com What’s the Value of Your Construction Company?...................... 14 Sales Manager Ambulance Chasers Fiddle While New York Burns..................... 18 DAYNA OULION dayna@delcommunications.com BOCES/BEST Partnership............................................................... 22 Advertising Account Executives COREY FRAZER ANTHONY ROMEO Broome-Tioga BOCES has Potential Construction Workers...... 24 GARY SEAMANS New York State Issues Supplemental Production services provided by: S.G. Bennett Marketing Services COVID-19 Sick Leave Law Guidance............................................. 26 Creative Director / Design KATHLEEN CABLE Cummins Inc’s Jamestown Engine Plant is an Anchor for the Jamestown Community.............................. 28 © Copyright 2021 DEL Communications Inc. All rights reserved. The contents of 2021 BEST Members....................................................................... 30 this publication may not be reproduced by any means, in whole or in part, Index to Advertisers........................................................................ 42 without prior written consent of the publisher. While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. PRINTED IN CANADA 05/2021 4 Builders Exchange of the Southern Tier
Laborers International Union David Marsh of North America Business Manager Local 785 622 W. State Street Ithaca, NY 14850 Phone: (607) 272 -3122 Fax: (607) 277 -6883 Applications available on our website: Email: busmgr785@centralny.twcbc.com Laborers785.org Our Membership Makes Us Who We Are- Safe, Skilled, Construction Craft Laborers Heavy & Highway Construction Building Construction Energy, Pipeline, & Windmill Construction ❑ Safe, Productive & Flexible Workforce ❑ Trained & Skilled Workers Who Live in the Community ❑ Women and Minority Laborers ❑ Specialty Training Available On Demand ❑ Apprentices ❑ Our Training Facility is located at 180 NYS Rt. 34, Waverly, NY LABORERS LOCAL 785 COVERS NINE COUNTIES IN THE SOUTHERN TIER OF NEW YORK & THE FINGER LAKES Entire Counties of: Broome, Chemung, Cortland, Schuyler, Steuben, Tioga, Tompkins. Partial Counties: Chenango-Entire County except the Townships of Sherburne, Columbus, and New Berlin. Delaware-The Townships of Sidney, Masonville, Walton, Tompkins, Deposit, Hancock, and Colchester.
A Message from the BEST Director BRAD WALTERS P utting 2020 behind us was a high point for me − So, what’s the good news? There’s plenty of it out there. It and I expect for many of you as well. Even though looks like the first half of 2021 will be very good to the con- the pandemic drags on five months into 2021, struction industry. Our plan room has listed over 400 bidding it looks like we are seeing the light at the end of opportunities in New York State since last December. Those the tunnel. Let’s hope it’s not a freight train. It’s hard to point are the best numbers we’ve seen since the inception of the fingers at our leaders for doing a good or bad job handling electronic plan room. Who would have thought they would the pandemic. After all, no one − and I mean no one − saw be building a $550-million cheese-processing plant in Alle- this coming, much less on how to handle it. It was an ex- gany County, NY? With the recent approval of legalized mari- ercise in trial-and-error science and practices from the be- juana, Canopy Growth’s hemp processing plant will move ginning. There was a lot of blame to be passed around, and forward in Kirkwood, NY. I expect legalization will start up a that blame became easier to see when it was in the rearview new cottage industry that will serve the growers, processors mirror. and retailers who’ll need construction services as well. We I believe everybody did learn something good from the are on record, along with 31 other associations, as oppos- pandemic as well. I did anyway; I learned how to use Micro- ing the legalization of recreational marijuana because of the soft Teams, Zoom, GoToMeeting, Google Meet, WebEx, Join- adverse effects it will have on the construction industry with Me, Ready Talk, and probably four of five others I have since New York’s Scaffold Law still in place. FedEx is building a new forgotten about. At first, I didn’t like these impersonal types distribution center in Broome County, creating 250 to 300 of meetings. However, they gradually grew on me over time new jobs, and the Jamestown CSD has announced plans for because of their clear benefits. For me, most of the meeting an $87-million capital improvements plan, just to mention a times were cut in half, attendance was almost perfect, the few of the larger projects in the Southern Tier. focus of the meetings was the business at hand, there were We were somewhat worried about the second half of 2021 less distractions, there was no need to pay the professional as the money in New York was supposed to run out midway and consultants travel time, and I saved countless hundreds through the year. Our new president has fixed that problem, of miles on my car. All that said, I did miss the person-to-per- as he has promised New York a $25-billion bailout plan. That, son interaction and missed building a true relationship that coupled with his $2.9-trillion infrastructure plan, should bode only in-person meetings can build. My guess is electronic well for our industry. Unfortunately, it won’t bode well for our meetings are here to stay. One more thing I learned: you can taxes, or our children’s taxes. blame anything on a pandemic and most of the time it won’t Here’s to another good year in construction, and thank you even be questioned. for being a member. v ri- tate uilders CONCRETE CONTRACTORS Specializing in Poured Foundations Laborers’ Local 621 Executive Board Edward Giardini, Jr. 558 Old Front Street 607.724.5545 Business Manager/Training Director Binghamton, NY 13905 fax: 607.724.0134 (716) 372-2639 www.tristatebuildersbinghamton.com 6 Builders Exchange of the Southern Tier
North Atlantic States Regional Council of Carpenters Local Union 276 21 Jet View Drive 1159 Maryvale Drive Rochester, NY 14624 Cheektowaga, NY 14225 585-328-6251 716-632-3080 Organizing Workers Since 1881 WE REPRESENT ALL CARPENTERS AND THEIR FAMILIES FOR BETTER WAGES, HEALTH & PENSION BENEFITS, AND WORKING CONDITIONS
2021 Builders Exchange of Southern Tier Scholarships Stone Lisek Stone is the recipient of this year’s Builders Exchange of Southern Tier Scholarship. He’s a junior at Alfred State College pursuing a Bachelor of Science degree in Construction Management. He resides in Hinsdale, NY, and is a graduate of Portville Central School. Stone is a member of the ASC men’s varsity soccer team and enrolled in the Army ROTC program. Upon graduation, he’ll be commissioned a second lieutenant in the U. S. Army. While in high school he was a member of the National Honor Society. At Alfred State, Stone has earned Dean’s list status each semester and was recently inducted into the Sigma Lambda Chi International Construction Management Honor Society. He is looking forward to graduation next year and entering the construction industry full time. Matthew Cotton Matt was raised just outside of Buffalo, in the small town of Elma, NY. He graduated in 2016 from the Iroquois School District. This spring he will be graduating from Alfred State College with a Bachelor of Science in Construction Management with a minor in Business. Matt has worked three summers in internships with two different companies. The first one was with Picone Construction Corporation of Clarence, NY, a mid-sized general contractor. The other has been with John W. Danforth Company, a large mechanical contractor. As part of the Danforth team, Matt has been working on the Albright-Knox Art Gallery project, which involves a large renovation and new addition. Recently, he accepted a full-time position with Danforth to begin after he graduates in May. He is hoping to take his education at Alfred State and recent work experience into future projects with the company. Matt is grateful for the Builders Exchange of the Southern Tier’s generous scholarship this year and their commitment to the development of the next generation entering the industry. Kingsview Enterprises Inc. ABBEY RESIDENTIAL | COMMERCIAL SERVICE CORP. SPECIALIZING IN: Paving, Seal Coating & Crack Filling, Pavement Markings, Concrete & Excavation • Crane Service Over 35 years in business • Mobile Storage & FREE Estimates | Fully Insured-All Work Guaranteed Office Space for Rent 7 W. First Street, Lakewood, New York 716-763-0069 Check us out on facebook @kingsview enterprises inc. 607-722-3032 with new link to website. E: abbeyservices@stny.rr.com www.kingsviewpaving.com 8 Builders Exchange of the Southern Tier
Thomas Christoffersen I am 18 years old and am enrolled in the Construction Management program at SUNY Delhi. I was born and raised the Binghamton, NY area and attended Chenango Valley High School. Here at SUNY Delhi, I’m studying Construction Management for four years to achieve my bachelor’s degree and am also playing golf for SUNY Delhi. Construction has always interested me, due to working in the summers during my years at Chenango Valley. After college, I plan to become a Project Manager for the LeChase Commercial Construction Co. Jordan Andrew Wamsley I am currently enrolled in the Bachelors in Construction Management program at SUNY Delhi in Delhi, New York. In addition to my studies, I build rustic furniture. After graduating from the Construction Management program, I hope to enter the workforce in residential construction. Once I have experience in the field, I would like to own my own company building houses, specifically tiny homes, for those who are less fortunate and need affordable, safe housing. v Building the Southern Tier 2021 9
Doc Bruce Construction Materials Laboratory Renovation Project Alfred State College is looking to recognize the work of Dr. William ‘Doc’ Bruce through the naming of its soon-to-be renovated Civil Engineering Technology laboratory By Paul Adair A DESIGN AND RENDERINGS BY ROGER SCHROEDER. lfred State College of Tech- nology, State University of New York (ASC) has been serving the needs of the American construction industry for al- most 70 years. During this time, one name has been particularly beloved by students, faculty, and industry alike: Professor Emeritus William “Doc” Bruce, DE, PE. Sadly passing away in 2016, Doc Bruce was regarded as a tireless advo- cator for education in construction and the trades, and was the initial adviser for the Alfred State College Associated General Contractors (AGC) student club. Bruce was wholly committed to working alongside industry leaders to better connect students with industry through site visits and internships and was also the first lead examiner for the state-wide New York Construction Materials Association Hot Mix Asphalt Quality Control/Quality Assurance cer- tification program, the only such pro- gram offered outside of New York City. His efforts and care over the years have had a tremendous impact on the construction field through the many Alfred State graduates who are them- selves today industry leaders. “Doc Bruce was instrumental in get- ting the New York State’s Associate Gen- eral Contractors to start a scholarship program that has helped thousands of kids go to schools across the state to study construction management, civil 10 Builders Exchange of the Southern Tier
engineering, and other degrees related “As I look around our industry and see all the graduates out there, I to construction,” says Erin Vitale, Chair, am so impressed. We had a lot of fun and learned a lot. Doc Bruce Civil Engineering Technology at Alfred was a living conduit that connected us with the industry.” State. “He really started the connec- − Jimmy Smith, Class of 1977, President of Advanced Testing tion to industry that we continue in this program to this day.” “When the students come out of Alfred State College Construction As a sign of the deep respect of- degree programs, they are ready to go right into the field. I attribute fered to Bruce, once it became known that to the history that Doc Bruce set up with the connection to the that ASC was planning to update the industry that is so important.” current 2,200-square-foot Civil Engi- − Gary Hill, Class of 1977, President of Union Concrete neering Technology materials test- 1811100 Iron Fits Your Business – Building the Southern Tier Ad 4.625" x 7" © 2018 Isosceles Design November 5, 2018 2:15 PM Manchester, NH. All rights reserved. ing laboratory, the call came out from ASC alumni to name the proposed, state-of-the-art facility the Doc Bruce Construction Materials Laboratory and assure that his years of service to stu- dents, the college, and industry could be appropriately recognized. The planned renovations will ac- complish several important things for ASC and enhance the soils, aggregates, concrete, and asphalt materials train- ing and certification that Alfred State currently conducts. In the many years since this lab space was initially devel- oped, not much has physically changed, and the facilities are beginning to show their age. The equipment, while still WHEN YOUR IRON FITS YOUR BUSINESS, functioning, has also not kept pace with industry and is currently a few generations older than what a gradu- ate may encounter out in the field. And while the storage casework and work YOU KNOW YOU’VE FOUND YOUR DEALER. tables have served the program well, they are also due for replacement. • Customized financing. When complete, the renovated lab • Buy new or used. is sure to become a valuable recruit- • Trade, rent or lease. ing space for the college. It will help • Best work tool selection. to clearly demonstrate to prospective students that what they learn in an • Free technical help line. ASC classroom and lab will be able to • Parts always readily available. be taken out into the “real-world” and • Unbeatable resale value. made applicable to what their future careers will require of them. “When potential students come for a campus visit, we always take them www.miltoncat.com into the lab to explain the connections Binghamton, NY • (607) 772-6500 between lecture material, hands-on, Building the Southern Tier 2021 11
practicum, and industry relevant work not available at all CM programs,” says working together to provide an update − something that Alfred has become Piotrowski. “Out of the gate, we provide to the facilities to add benefit to the famous for,” says Timothy Piotrowski, our students with many of the skills curriculum, something that was much Professor, Civil Engineering Technology that industry people want, and that’s needed when I was there in 2008 to Department at Alfred State. “And the one of the reasons why we want to 2012,” says Adde Matteson, BS, Con- fresh paint, new flooring, and trans- keep our facilities up to date.” struction Management Engineering lucent overhead door that will bring Seeking to raise funds (this renova- Technology Class of 2012. “And even more daylight into the space is certain tion project is 100 percent supported though I never had the pleasure of to make an impression on any per- by industry), the Doc Bruce Campaign meeting Doc Bruce, I do agree that spective students, as well as be more is being led by Jimmy Smith, president appealing to our current students.” of Advanced Testing, and Garry Hill, this is a vital part of the program, and The industry demand for ASC stu- president of Union Concrete, both I greatly admire his legacy. I know the dents is high and supported by ASC’s 1977 graduates of the construction materials coursework and lab time industry partners, with many consult- engineering program at ASC. Along- had a large impact on my studies and ing firms offering summer internships side faculty and staff from the college, career path, much like the encourage- to students who have taken the con- the Doc Bruce Campaign is currently ment of faculty in the department.” crete, soils, and asphalt courses con- reaching out to both industry and ASC The Doc Bruce Campaign has set ducted in the lab space − so much so alumni to ask for support. itself the goal of raising $500,000 for that every year there are usually more The support for this fundraising ini- the renovation project, with the abil- openings at regional testing companies tiative has been overwhelmingly posi- ity to allocate additional funds to cre- than there are ASC students available. tive, with many emails of pouring in ate a scholarship in Doc Bruce’s name. “We are a technology program here from ASC alumni across the industry At the time of this writing, more than at Alfred State, and the majority of our just to say what a positive impact the students have taken a concrete class, college has had one their careers, as $160,000 had already been raised an asphalt and soils class, a survey well as how the lab has been a great from 45 generous donors. The cam- class, and an AutoCAD drafting class by memory for them. paign hopes to begin renovations by the end of their first year, something “I’m so glad to hear that alumni are summer 2022. v To find out more and donate, please visit https://app.mobilecause.com/vf/DOCBRUCE. Donations can also be made payable to Alfred State College Development Fund, Inc., a 501(c) (3) charitable entity. Mail your gift to: Alfred State College, Attn: Doc Bruce Campaign Office of Institutional Advancement, 10 Upper College Drive, Alfred, NY 14802. www.benchleycrane.com Quality Crane Rental for over 55 years 716-549-0727 • 716-934-4330 PO BOX 220, FOR EST V I L LE, N Y 14062 12 Builders Exchange of the Southern Tier
Building the Southern Tier 2021 13
Post-COVID: What’s the Value of Your Construction Company? By Anthony Duffy, Managing Director of ValuQuest, LLC, A division of Bonadio T he sale, purchase, or merger THE COVID EFFECT PRESENT WORTH OF FUTURE of a construction company Today we are all dealing with the BENEFITS requires an objective esti- ramifications of a global pandemic. Owners of a privately held company mate of the company’s value. While we are operating generally on usually have strong emotional attach- Many other issues call for valuation as a “local” basis, we now also must deal ments to the organization they built well, including financing, succession, with this sudden change that is none and to the people they employ. Price estate planning, tax elections, certain of our own doing. And while we hope may not be the only concern when changes to ownership structure, insur- this all ends soon, the effects may be succession plans pass control and ance claims, and several other situa- felt for some time. The future is more management philosophies to family or tions. uncertain today than it has been any employees. But in determining mon- time in the last decade. etary value, the market uses objective Some of these issues can arise sud- As you will see below, a valuation is standards. denly, as when owners are forced dependent upon estimated future re- A potential buyer or lender wants to to sell unexpectedly. Quick changes turns for the buyer, and a risk-rated know whether a construction company are always difficult to handle. Proac- discount applied to these estimated promises to deliver annual benefits, tive planning ensures that a contract, future cash flows. Most industries, not measured as operating cash flows, rather than emotions, will control the just construction, will have significant and/or appreciation, that are greater process. Using a complete valuation difficulties in assessing these two el- than the asking price. When we convert as the base − and periodic updates, ements. The data points that we try those future economic benefits into thereafter − helps contractors assess to use are dated, usually nine to 12 present-day dollars, we then have the their place in the market regularly, in- months in arrears. Not having an up- current value for the company. cluding opportunities and risks, indus- to-the-minute finger on the pulse does STANDARDS OF VALUE try trends, and changes in demand. pose difficulties. There are various “standards of value.” Liquidation value, as the name states, is what a company’s value would be if all its assets were liquidated, vol- With decades of experience managing the in- untarily, orderly, or otherwise. Fair surance needs of contractors and others in the construction industry, we understand your value, sometimes used in ownership unique needs and will work proactively towards disputes, is often defined as the value the coverages you need. of an interest just prior to the disputed CONTACT US TODAY ! action. It usually omits minority interest Workers Compensation • Commercial General discounts, but precise definitions are Liability • Builder’s Risk Liability • Pollution Liability governed by regulation or by state law. Many construction acquisitions in perrycarroll.com | 607.734.4291 | Social icon Rounded square Only use blue and/or white. For more details check out our Brand Guidelines. recent years have been driven by in- 14 Builders Exchange of the Southern Tier
vestment value, which depends on an 2) T he cost (or “asset-based”) approach represent a baseline, the lower end individual investor’s strategy. Invest- calculates the market value of a for the company value. ment value can vary greatly. It may soar company’s assets, including con- 3) The income approach is the most above other valuations, as when the tracts in place, minus its liabilities. common method employed in the purchased company contributes an Many contractors own real estate valuation of closely held construc- important synergy to the buyer. Invest- and/or equipment whose deprecia- tion companies. The appraiser at- ment value depends on who the buyer tion deductions render its book val- tempts to calculate the present val- is and what their motivations are. ue lower than the market value for ue of a contractor’s expected future A contractor with niche market pen- those assets. The asset-based ap- earnings using one of two methods: etration or success and familiarity in proach adjusts asset values to their discounted future cash flows or a a certain geographic area or specialty FMV as appropriate. This value may capitalization of a single amount of performance skills, for example, may be attractive to a national player seek- ing to expand into the seller’s market- place or build revenue mass. These motivations are unique to each buyer and depend almost entirely on the buyer’s circumstances. Beauty is in the eye of the beholder. The most common term one hears is “fair market value” (FMV). FMV is the required standard in almost all tax ap- Olean Credit Union Cuba Rushford STEAM plications and many business agree- ments as well. FMV is the cash price at which property would change hands between a hypothetical buyer and a hypothetical seller, if both were willing and able, free of any compulsion to buy or sell, and in possession of all perti- nent facts. This is not a potential sale or transaction price. APPROACHES TO DETERMINING VALUE There are three commons approach- es to business valuation: Southwestern CSD 1) T he market approach looks at data, including stock issues and merger Proud to Live and acquisition information, for companies that are comparable in and Work in the size, structure, markets, and service Southern Tier. lines. Finding a comparable compa- ny or transaction is rare and discov- ering all the relevant details within a INSPIRING private transaction is almost impos- DESIGN. sible. Most contractor valuations will ENRICHING rely on one of the other two meth- COMMUNITIES. ods. Building the Southern Tier 2021 15
cash, expected to repeat very evenly part on their current use, condition, on a handful of employees to manage on into the future. and location. For example, one bull- scheduling, estimating, and subcon- The events of the past year have now dozer is new while another has pulled tracting. How likely is it that these em- created an uneven, roller coaster ex- hard duty for a long time. ployees and relationships will remain pectation. So no one cash flow amount, The value of a piece of equipment is with the company? stable and repeatable, is expected over usually based on the cost of replacing • A company with substantial revenues the next few years. We will be on a wild it with a like property; that is, similar from one or a few returning custom- and at times unpredictable ride until in its capacity and its remaining use- ers will suffer if those customers go we reach a new “normal”. ful life. The value of land or buildings elsewhere. Who are these owners, The discounted cash flow method can often be gauged by reference to and how will present circumstances forecasts three to five years of future the purchase price of similar property influence their buying decisions? Will annual revenue, net income, and capi- nearby. a change in the contractor ownership tal spending. And a future assumed Other assets are intangible, and precipitate further indecision on their exit price is calculated. After these are determining their value can be even part? estimated, one converts these figures harder. There’s no price list to con- Most business valuations approach to cash flow available to an owner, and sult for the value of strong customer these intangibles in combination with a then “discounts” the cash flows to a relationships, a skilled and loyal work- company’s tangible assets. Without the present value using risk adjusted dis- force, favorable supplier terms, de- ability to generate significant operating count rates. This normally is a difficult tailed business plans or well-ordered profits, the tangible assets themselves process to complete, with many poten- financial history, and job cost reporting have little intrinsic value. tial variations, and today, even more systems. A contractor’s reputation for Liabilities are usually easier to quan- challenging. good work may be golden, but unlike tify, including accounts payable, tax ASSETS AND LIABILITIES real gold, that doesn’t easily translate obligations, and debt. In assessing the Attaching monetary values to tan- into an objective value. liability involved in a bank loan (and any gible assets like cash, receivables, and Intangible assets carry risks and bonding), a valuation must consider inventory is usually straightforward. over-reliance on them can present a any particularly high or low interest But long-term assets such as facilities, major business risk. For example: rates and any personal guarantees of equipment, and land are more difficult • Many construction companies, espe- debt or bonding by the current owner- to value since their worth depends in cially those that are family owned, rely ship group. Proud supporters of the STBA SUITE 300, 6 ROSLYN ROAD, WINNIPEG, MANITOBA, CANADA www.delcommunications.com DEL Communications Inc. Your key to success. WE OFFER OUTSTANDING PERSONAL SERVICE AND PO Box 420, 970 Bullis Road QUALITY IN THE AREAS OF... Elma, NY 14059 • Creative design Tel: (716) 655-3400 ext. 212 Fax (716) 655-4427 • Advertising sales kbiddle@maderconstruct.com • Trade publications • Qualified sales & editorial team www.maderconstruct.com 16 Builders Exchange of the Southern Tier
EVEN MORE JUDGMENT cilities, single-family homes, apartment impossible to assign a precise figure REQUIRED TODAY complexes, commercial offices, etc., until the company is sold because only Construction operations involve each will have their own very different then can you know exactly what the more than its share of risk, and highly and specific expectations. traffic will bear. Meanwhile, contrac- cyclical demand makes revenues and Contracts in place are the most re- tors can control many of the elements expenses rise and fall unevenly. New liable measures of future income, so that drive a company’s value, and these construction thrives in a healthy econ- contractors intending to sell would do areas are where our efforts should be omy, renovation work more so during well to retool and redouble their mar- focused. tough times. Typically, state budgets keting efforts. Valuquest, the business valuation are cut sooner than federal budgets. unit within Bonadio, offers the high- Presently, a longer-term view toward DISCOUNTS FOR LACK OF est level of valuation services. If you any governmental budget outlook, at MARKETABILITY OR CONTROL need assistance, please reach out to any level of government, is tenuous at Discounts can also account for a us. Anthony Duffy is the managing di- best. Much of the industry depends, company’s lack of marketability-the rector of ValuQuest LLC. Tony is based directly or indirectly, on governmental difficulty of converting privately held out of our Albany, NY office but covers support. assets to cash. Additional discounts our entire service area with a team of Dependable project private financing might adjust value for a minority inter- highly experienced individuals. is also critical to the industry. Where will est’s lack of control. Minority interests, This material has been prepared for the money come from? Private projects on a pro-rata basis, are less valuable continually need long-term financing, general, informational purposes only than controlling interests, who have banks most often, and these resources and is not intended to provide, and the power to direct a company’s entire need to continue to be widely available should not be relied on for, tax, legal or future, not to mention declare annual for continued capital expansion. Times accounting advice. Should you require bonuses and dividends. of uncertainty mean even greater risk, any such advice, please contact us di- and these environmental risks must be AN ART, NOT A SCIENCE rectly at https://www.bonadio.com/ considered. Whatever trade or service segment contact-us. The information contained Segments or other industries served is involved, determining the value of a herein does not create, and your re- by a contractor can also result in very construction company remains a chal- view or use of the information does different expectations and risks. If you lenge. We are tasked with “estimating” not constitute, an accountant-client build hotels, retail, manufacturing fa- a value for a particular purpose. It’s relationship. v BROOME BITUMINOUS PRODUCTS, INC. AND BROOME TIOgA BITUMINOUS PRODUCTS, INC. SITEWORK DEVELOPMENT ASPHALT PAVING MILLING LOCALLY OWNED & OPERATED BY THE GATES FAMILY FOR OVER 30 YEARS 416 Prentice Road · Vestal, NY ∙ 13850 (607)729-0498 www.broomebituminous.com Building the Southern Tier 2021 17
Ambulance Chasers Fiddle While New York Burns By Tom Stebbins, Executive Director, Lawsuit Reform Alliance of New York E ven before the chaos of 2020, verdicts is outsized pain and suffering ommendation and instead enacted New York was buckling under awards. a law known as CPLR 5501(c) to allow both the nation’s highest tax- Unmitigated jury awards produce judges to review and control damages es and highest litigation costs massive and unpredictable payouts awards. In practice, judges have used per household. Unsurprisingly, these that, in turn, require companies and CPLR 5501(c) to impose a de facto cap twin burdens have led to the nation’s public entities like the Transit Author- of $10 million as reasonable compen- single-greatest taxpayer exodus, a ity to secure pricey, high-limit insur- sation for pain and suffering – but this brain-and-wallet-drain that makes the ance. The costs of insurance are then practice is in constant jeopardy. Empire State weaker, less competitive, passed on to the general public in the While many states, including pro- and less fiscally sound. form of higher prices, higher taxes, and gressive California, adopted strong re- Toss in the pandemic, and it’s no fee hikes. forms, New York’s trial lawyer-friendly wonder that New York’s basic public The same out-of-control cycle con- approach was tepid at best. services and municipal agencies are fronted then-Governor Mario Cuomo The trial lawyers lobby won the struggling. in the 1980s. During New York’s last 1980s showdown, securing a frag- While all of this is going on, what bout with a series of nuclear verdicts, ile legal standard over the proposed have the state’s personal injury attor- he assembled the Jones Commission $300,000 cap. The plaintiffs’ bar won, neys been up to? to examine the crisis and propose a and New Yorkers lost. Business as usual. They’re plunder- solution. But the present wave of nuclear ver- ing away. The Jones Commission recommend- dicts shows that this was not enough Over the past two years, New York’s ed, among other proposals, to cap to satiate the trial bar. Instead, plain- courts have been rocked by some of pain and suffering awards at $300,000. tiffs’ lawyers are applying pressure the highest “runaway” verdicts in per- The Legislature, which has long-been like never before. Their chief weapon sonal injury actions in their history. The swayed by the powerful lobbying wing is a practice called “anchoring.” As the chief culprit in these sky-high, “nuclear” of the trial lawyers, rejected this rec- name suggests, anchoring places a metaphorical weight on the award. In each of five recent nuclear verdicts, the plaintiff’s counsel represented to ju- rors that reasonable compensation is far above the fragile, de facto $10 mil- lion cap. Expectations “anchored”, juries re- Supplier of Architectural/Dimensional Stone since 2006 sponded as intended, awarding up Phone: 814-547-5740 | www.natslateandquartzite.com to $90 million for pain and suffering 12575 Leslie Road alone. If sustained, these outrageous Meadville, PA 16335 verdicts will do far more than explode mike@natslateandquartzite.com the value of the very worst cases. 18 Builders Exchange of the Southern Tier
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The cost of doing business and living in New York is sure to increase. Plain- These nuclear verdicts are dangerous – just as tiffs’ attorneys’ efforts to increase ver- irrationality is dangerous in the financial markets. dict awards beyond reasonable com- pensation is irresponsible in the best Like market participants, litigants must act on perceived of times. Aggressively pursuing rapa- value, and perceived risk. cious awards while New York business- es and citizens are struggling with the economic devastation of the Covid-19 with impunity. This creates irrational munity and its citizenry cannot count pandemic is appalling. expectations – injured persons do not much longer on the judiciary to hold These jury awards do not just threat- and cannot be expected to monitor back the deluge of nuclear verdicts en to trigger a re-run of the 1980s cri- real jury awards – which then impede that threaten to drain already strug- sis. By raising the price on all future settlement and, ironically, delays re- gling municipal budgets and increase cases, in turn, raising the cost of in- covery by those who actually need and the cost of goods for all. Sooner or surance premiums, and these nuclear deserve it. later, the legislature must fight back verdicts will raise the cost of all goods The plaintiffs’ bar has adopted a against the trial lawyers’ agenda and and services in New York. They also clear and persistent talking-point dur- enact real civil justice reform to put an threaten to clog up an already byzan- ing settlement negotiations in the end to abusive, verdict-inflating tactics tine and backlogged court system with higher courts. They argue that the like anchoring. defective, illegitimate verdicts, which CPLR 5501(c) $10 million de facto cap Hopefully, lawmakers will act before force additional litigation and seem- is de facto kaput. The logic is that the the litigation industry compounds the ingly endless appeals. appellate courts have been effectively coronavirus crisis with one of their own These nuclear verdicts are danger- stacked with trial lawyer-friendly judg- making. ous – just as irrationality is dangerous es as a side-effect of long Democratic These lawyers are choosing to mis- in the financial markets. Like market control of the governor’s mansion. represent reasonable compensation, participants, litigants must act on per- This talking point has yet to bear out as defined by the courts, with their un- ceived value, and perceived risk. The in reality, but trends suggest that it is reasonable requests and anchors. And plaintiffs’ bar uses gargantuan verdicts a question of when, not if. This is es- they do it under the guise of compas- – even when they are not sustained – pecially true now, as New York’s court sion and emotion, for the good of their as a marketing tool, publicizing verdicts administration has taken the budget sympathetic clients, and to maximize and creating an often-unrealistic as- crisis presented by the pandemic as an their clients’ financial recovery. These sessment of value in its own clientele. opportunity to execute a purge of the attorneys’ personal financial gain is, of We do not allow this practice for finan- ranks of the state court system of older course, not at the heart of the issue. cial advisors – past performance not judges, leaving it leaner, younger, and Pay no attention to the folks with the indicative of future results – but per- much more progressive. golden fiddles while the rest of New sonal injury lawyers tout these awards In short, New York’s business com- York burns. v B R Surveying, PLLC N.Y.S. Licensed Land Surveyor Roy J. Bonham, PLS Allegany, NY 14706 PO Box 1237 Wellsville, NY 14895 Office: (585) 593-1352 Phone: (716) 373-1033 Mobile: (716) 498-4031 COMMERCIAL – INDUSTRIAL • COMPLETE BUILDING SERVICE Email: roybonham@gmail.com FULLY INSURED AND BONDED New York State Certified Service-Disabled Veteran-Owned Business www.duggan-duggan.com 20 Builders Exchange of the Southern Tier
Your Source for Steel, Stainless, Aluminum & More Structural Sheet & Plate Concrete Reinforcing Drainage Shapes & Bars Products Products Products P.O. Box 539, 8085 State Hwy 12, Sherburne, NY 13460 www.SteelSalesInc.com Piles Additional Building Tube Snow Plow & Heavy Decks & Grates Materials & Piping Equipment Wear Parts WBE / DBE Certified Custom Fabrication 350 Ton Press High Definition Plate Roller Cincinnati Brake Plasma Table Hydraulic Shear Vertical High Monarch Vertical Coming Soon! Cap Band Saw Milling Machine June 2021 800-238-7833 or 607-674-6363 - Fax: 607-674-9706 Jamestown Macadam, Inc Jamestown Macadam, Inc. has been involved in the sand, gravel, asphalt, ready mix and precast business for over 50 years. Since the original operation which started in the 60’s we have grown to include 4 sand & gravel operations, 3 hot mix plants, one contractor supply outlet, 3 ready mix operations and a precast operation. Jamestown macadam, Inc is proud to be one of Excellence in product, service and price the largest family owned construction supply We pride ourselves on providing outstanding businesses in New York State. service to our customers while maintaining a quality product line at competitive prices. 716-664-5108 716-487-0168 www.jamestownmacadam.com www.southerntiersupply.com Building the Southern Tier 2021 21
BOCES/BEST Partnership By Brad Walters, Brett Sherman, and Mike Azersky M att Sheehan, Principal for J & J Sheet Metal. The group used to a mortgage payment of $200,000 of Career and Tech- a PowerPoint presentation titled “Why or more or they can go to work in con- nical Education at Construction.” struction and make that $200,000 in Broome Tioga BOCES The director introduced everyone the same time frame. The average age in Binghamton, NY, and Brad Walters, and gave a brief discussion about why of a construction worker is 47, and the Executive Director of BEST are, working they were there. Explaining the group industry desperately needs to recruit on a partnership to bring BOCES gradu- wanted to introduce the counselors to younger people. ates into the construction industry. The an alternative to continuing education, The meeting was then turned over program will introduce pre-graduates he said, “We are by no means against to Brett Sherman, who owns a $10 and graduates to the various trades furthering one’s potential in colleges million-a-year masonry company, Alli- in the construction industry through and universities, but there are kids who ance Masonry Corporation in Broome direct meetings and contact with com- are just not suited for or interested in County. Mr. Sherman went through his pany owners and human resource de- higher education. The construction in- presentation and explained that con- partment heads. dustry offers valid careers that pay well struction work is dynamic: no two lo- A preliminary meeting was held with and provide good benefits. Unlike high- cations are the same, no two buildings 16 area guidance counselors in Broome er education, the construction industry are the same, and, unlike office work, if and Tioga Counties. The guidance coun- pays entry level employees to learn the you don’t like the person you’re work- selors listened to a 20-minute presen- various trades through registered NYS ing next to, there’s a very good chance tation put together by Brett Sherman, apprenticeship programs and other in- you won’t be stuck with them very long. President of Alliance Masonry, Amanda house training.” He showed several pictures of the work Bedian from the Upstate Masonry Al- The goal was to make counselors he and his people had done and noted liance, Mike Azersky, President of J & J and other educators aware of just how there was a big sense of pride in ma- Sheet Metal, and Kevin Holt, a Foreman good the industry pays, the benefits sonry as the buildings stood for years that come with the jobs, and the many and many of the people who built them different job opportunities that exist in would pass by them for years to come. the industry. The group was then given He also explained how technology was a broad overview of the industry and in- making the trade easier, citing light- troduced to NYS prevailing wages and weight concrete blocks, robotic brick the pay levels for those people working laying, computerized mules to lift block, on public work. They were given two and even exoskeletons that help to re- spreadsheets: one showing appren- duce the strain on the human body. ticeship rates over a four-year period Skilled masons are in short supply and for three trades and another showing are rarely out of work. The Bureau of La- journeyman’s rates for 11 trades that bor Statistics estimates the job outlook ranged from a low of $88,680 to a high for masons will continue to grow at a of a $161,660. These rates are standard rate of 12 percent a year until at least for anyone working a regular 40-hour 2026. In the past, masonry was consid- work week in public work. Included in ered seasonal work, but today masons that package is usually a generous ben- work in covered and heated enclosures efits plan. In conclusion, a young man or that provide year-round work. Journey- woman can go to college for four years man masons can earn between $30 to and come out with debt that amounts $41 per hour in take-home pay in ad- 22 Builders Exchange of the Southern Tier
The goal was to make counselors and other educators aware of just how good the industry pays, the benefits that come with the jobs, and the many different job opportunities that exist in the industry. dition to health care and pension ben- and equipment needed to hang and weekends so the students can main- efits that range between $19 to $34 assemble 36-inch diameter duct work tain a 40-hour work week as well. Once per hour. thirty feet in the air. Although J & J Sheet they graduate to a journeyman, partici- Mike Azersky and Kevin Holt then Metal is non-union, they do operate an pants are earning more than $94,000 presented the work done by J & J Sheet in-house apprenticeship program. The a year. Metal. J & J processes 300 tons of metal program lasts four years and appren- BEST is looking for companies that a year, and they fabricate ductwork for tices get a pay raise every six months would like to participate in the new commercial HVAC ductwork and air ex- with initial pay starting at over $16 an partnership. To participate, the com- changers. Mike and Kevin emphasized hour and health and retirement ben- pany must have a valid apprenticeship the need for basic math skills in their efits that total over $1,700 a year. Over program or someone to serve as the business, and they pointed out that the four years, participants are taught student’s mentor, a company orienta- sheet metal is usually tucked away out basic math skills so that they can prop- tion that explains what is expected of of sight on roofs or in ceilings. They had erly add fractions and read measuring several pictures of their work, some of devices. The math involved in the pro- them and when, as well as any safety which was more than 30 feet in the air; gram gets more progressive over the equipment he or she will need to per- needless to say, fear of heights would years, and eventually students get into form the work. If you are interested, be a problem in their line of work. radial development and even triangu- contact Brad Walters at 716.665.4026 Imagine the logistics, safety practices, lation. The classes are done nights and or 607.771.7000. v ualocal112.org ualocal112.org ualocal112.org 1111Griswold Street Griswold Street 11 Griswold Binghamton, Binghamton, NYNYStreet 13904 13904 Binghamton, NY 13904 (607) 723-9593 (607) 723-9593 Utica Office (607)(315) 724-0948 Providing HVAC and Plumbing Utica Office 723-9593 (315) 724-0948 FAX: FAX: Utica (607) 723-9467 (607)(315) Office 723-9467 724-0948 FAX: (607) 723-9467 “Providing Union-trained mechanics since 1893! “Providing Cost is soon Union-trained mechanics since 1893! Cost is soon forgotten, but quality remains forever.” “Providing Union-trained forgotten, mechanics but quality since 1893! remains forever.” solutions for over 20 years Cost is soon forgotten, but quality remains forever.” Daniel E.Crocker Daniel E. Crocker Todd ToddC. Burt C. Burt Business Manager/ Business Manager/ Financial Secretary Assistant Business Assistant Manager Business Manager Daniel E. Crocker Financial Secretary Todd C. Burt Business Manager/ Assistant Business Manager Financial Secretary Karl D. Karl D. zuHone zuHone TomA. Tom A. Zalocha Zalocha President Organizer President Organizer Karl D. zuHone President Tom A. Zalocha Organizer 716-488-8275 • jamestownheatingandair.com Building the Southern Tier 2021 23
Broome-Tioga BOCES has potential construction workers B By Matt Sheehan roome-Tioga BOCES re- cific business. Interested students may of these occupations under the age ceives dozens of phone seek further connection with a busi- of 18. Child Labor Regulations section calls each year from em- ness through a short-term job shadow 570.50 (b) and (c) outline the require- ployers seeking to fill open where different tasks can be observed, ments: https://www.ecfr.gov/cgi-bin/ positions in their companies. The wid- or cooperative work experience where text-idx?c=ecfr&sid=48d6ee3b99d3b3 ening skills gap and varying definitions the student becomes an employee a97b1bf189e1757786&rgn=div5&view of hard work often make finding the able to perform productive work. Both =text&node=29:3.1.1.1.31&idno=29 . right candidate feel like the search for options give an employer the opportu- All of Broome-Tioga BOCES 24 career a needle in a haystack. Then once dis- nity to build a relationship with a stu- and technical education programs are covered, the candidate may only stay dent, evaluate their match to the team, state-approved and offer a registered a short time before leaving for a per- and train them in the expectations for cooperative work experience program. ceived better offer. their job. The student simultaneously In order to be successful in a cooper- The Career Development Center has the opportunity for a field experi- ative work experience, students should at Broome-Tioga BOCES would like ence that prepares them for the ex- be exposed to the skills needed to to help with the challenge of finding, pectations of the job, allowing them to perform the job. To keep our instruc- then keeping skilled entry-level labor. evaluate their fit for the work before tion current to employer expectations, An important component to doing this accepting a permanent position. Broome-Tioga BOCES hosts biannual is building relationships between stu- Some employers are hesitant to trade advisory committee meetings dents and employers. Our hope is that take advantage of the opportunity to “try before you buy” a student under to connect teachers and employers. by helping high school students to con- the age of 18, leaving a limited pool of These meetings are an opportunity to nect to an employer who treats them candidates and the only option of hir- communicate your needs to the in- as a part of the team, we will build loy- alty in employment that lasts long after ing without definite knowledge of what structor teaching the technical content graduation. you are getting. Often this hesitation to build work-ready employees. We There are many options for connect- is based in knowledge of prohibitive encourage you to become involved as ing with students throughout their high hazardous occupations. NYSDOL and this creates a pipeline to the jobs you school career that can fit different lev- USDOL do allow students enrolled in need to fill. els of time commitment. Options with a state-approved career and techni- For further information about con- low time commitments include guest cal education program in the same necting with students for future em- speaking and business or jobsite tours. content area as the job and participat- ployment or joining a trade advisory These experiences are great for expos- ing in a registered cooperative work committee, contact Nicole Tryt at ing students to an industry or a spe- experience program to work in many 763-3671 or ntryt@btboces.org. v DEL Communications Inc. and you, THE KEY TO SUCCESS. We offer outstanding personal service and quality in the areas of: CREATIVE DESIGN | ADVERTISING SALES TRADE PUBLICATIONS | QUALIFIED SALES & EDITORIAL TEAM Suite 300, 6 Roslyn Road, Winnipeg, Manitoba, Canada R3L 0G5 Toll Free:1.866.831.4744 | Toll Free Fax: 1.866.711.5282 www.delcommunications.com 24 Builders Exchange of the Southern Tier
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New York State Issues Supplemental COVID-19 Sick Leave Law Guidance By Phillips Lytle, LLP a total of three (3) times. The second SICK LEAVE and third leaves must be based on RELIEF a positive COVID-19 test, rather than merely having close contact with someone who has COVID-19 and must be supported with documen- tation of a positive test result from O a licensed medical provider or test- ing facility, unless the employer con- n January 21, 2021, the 3. A n employee who continues to test ducted the test. New York State Depart- positive after completing a period of The DOL’s supplemental guidance ment of Labor (DOL) is- quarantine or isolation must not re- does not affect whether an employer sued supplemental guid- port to work. The employee shall be is required to provide paid or unpaid ance on employer obligations under deemed subject to a second manda- leave under the law based on the em- the State’s COVID-19 Sick Leave Law, tory order of isolation and entitled to ployer’s size. It also does not change which clarifies several points of confu- leave under the COVID-19 Sick Leave sion surrounding the law. While the Law for such second period of isola- the amount of paid leave, if any, that DOL’s previous guidance remains in tion. must be provided during a period of effect, the new guidance sets forth the 4. An employer that requires an em- leave covered by the law. The DOL’s full following protocols for administering ployee who is not otherwise sub- supplemental guidance can be viewed leave under the law: ject to a mandatory or precaution- at https://dol.ny.gov/system/files/docu- 1. E mployees need not be tested be- ary order of quarantine or isolation ments/2021/01/covid-19-sick-leave- fore returning to work after a period to remain out of work because of guidance_1.pdf. of mandatory quarantine or isolation exposure or potential exposure to Employers should take steps to in- (except for nursing home staff), and COVID-19 must continue to pay the form human resources employees and an employee should not be tested to employee until the employer per- other appropriate personnel of the discontinue isolation or quarantine. mits the employee to return to work, COVID-19 Sick Leave Law’s protections, 2. An employee who tests positive af- or the employee becomes subject to as well as the DOL’s supplemental ter previously completing a period a mandatory or precautionary order guidance, to ensure compliance with of mandatory quarantine or isolation of quarantine or isolation. If the em- the law. must not report to work. The em- ployee subsequently becomes sub- ployee shall be deemed subject to ject to such an order, the employee ADDITIONAL ASSISTANCE a mandatory order of isolation and is then entitled to receive sick leave For questions regarding the DOL’s entitled to leave under the COVID-19 under the COVID-19 Sick Leave Law supplemental guidance, please contact Sick Leave Law, even if the employee for the period the employee is sub- any of the attorneys on our Labor & has already received leave under the ject to such order. Employment Practice Team or the Phil- law for the first period of quarantine 5. Employees may only qualify for leave lips Lytle attorney with whom you have or isolation. under the COVID-19 Sick Leave Law a relationship. v 26 Builders Exchange of the Southern Tier
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