Vol. 24, No. 1

(518) 869-9800

July 2005

 


Inside this Edition:  Hatfield Elected President Of NESCA, President’s Message,  Court Finds Construction Manager Liable Under Labor Law Section 240, OSHA 10-Hour Course Requirement Passed By Legislature, Workers’ Compensation Payroll Limitation Law Made Permanent, Governor To Consider Multiple Prevailing Wage-Related Bills, Welcome New Member, Member Anniversaries

 

 

HATFIELD ELECTED PRESIDENT OF NESCA  (Go Top)


 

                Harold (Hal) M. Hatfield, President of Maximum Security Products Corp. (MSP), was elected president of NESCA for 2005-06 at the association’s June 9th membership meeting held at the Century House.  Hal became NESCA’s 33rd president, succeeding Kevin J. Garrity of Rose & Kiernan, Inc.  He has served as NESCA’s vice president, treasurer and secretary during the last three years respectively, following several years of service representing specialty contractors on NESCA’s Board of Directors.

                Hal founded MSP with two partners in 1989, and has been a member of NESCA since 1994.  Prior to starting MSP, he was a founder and co-owner for 18 years of Bast-Hatfield, Inc., a commercial/industrial general contractor.

                Born and raised in South Bend, Indiana, Hal found his way to New York via an appointment to the United States Military Academy at West Point, graduating in 1964.  Following post-graduate studies in the Army’s Airborne and Ranger schools, he enjoyed a 14-month all expense paid sabbatical in Southeast Asia with the 4th Infantry Division.  Before settling in the Capital District, Hal obtained his Masters Degree in Mechanical Engineering from the Illinois Institute of Technology and spend six years as a design manager in Westinghouse’s naval nuclear operation in Pittsburgh.

                Hal is a licensed professional engineer in New York and Pennsylvania and is a licensed contractor in California, Virginia, Arizona and Washington.  He serves on the board of the Destroyer Escort Historical Museum and is the chairman of the Ship Restoration and Maintenance Committee for the U.S.S. Slater Project, a key component of Albany’s Riverfront Development Program.  Hal is also active in programs for the West Point Society of Upstate New York.

                Hal is the proud parent of three sons and an equally proud grandparent of four grandchildren.  He resides in Waterford with his fiancé, Pat Kilmartin, whom he met at a NESCA meeting (according to Hal this was just one of the many fine benefits of membership in NESCA).

                Also elected on June 9th were Toni Cristo of Cristo Demolition, Inc. as vice president; Peter Clechenko of Albany Interiors, Inc. as treasurer; and Tony Whaley of Henderson-Johnson Co., Inc. as secretary.


 

 

 

Outgoing president Kevin Garrity (left) accepts plaque from new president Hal Hatfield

 

There will be no NESCA membership meetings during July or August.  The next regular membership meeting has been scheduled for September 8, 2005 at the Century House.


 

 

 

PRESIDENT’S MESSAGE  (Go Top)

It is indeed an honor for me to have been elected NESCA’s president for 2005-2006.  We, as members of NESCA, are privileged to contribute to the success of and reap the benefits of belonging to the largest and most effective subcontractor organization in the country. 

When any organization experiences a change in leadership, there is normally an expectation of further change in terms of improvement in the effectiveness of the organization in accomplishing its mission.  For example, last year Kevin Garrity brought a new clarity and focus to the idea that by recruiting new members into NESCA, existing members benefit through the added strength the new members bring to our lobbying and government relations efforts.  In addition, under Kevin’s leadership, NESCA reemphasized the importance of safety by entering into an Alliance with OSHA and the NYS Onsite Consultation Program.  Of course, Kevin’s success during his term in office creates a significant challenge for me.  What can be done on my watch to make NESCA even better?  What can we accomplish during the coming year to bring even more value to our membership in NESCA?  Well, I can tell you at least this much.  In addition to our many existing benefits and services, we are exploring two new and exciting programs, both of which I hope to be able to announce to the membership within the next month or so.  Mostly, however, I’d like to improve NESCA by listening to the ideas that you, the membership, provide me.  I urge you to contact me with any suggestions or ideas you have regarding how NESCA can better serve its members.  My address, phone, fax and email address are in the NESCA Membership Directory.  If you prefer to present your ideas personally, I would enjoy buying you a beer or coffee (your choice) any time.   

While NESCA won’t hold its next membership meeting until September 8th, during the next couple of months, our committees will be hard at work developing informative and interesting meeting programs, educational seminars and special events for the coming year.  Our joint NESCA/GBC/ECA Education Committee has already met, and preparations are well under way for a full menu of timely and worthwhile educational seminars and courses starting in September.  Likewise, our Golf Committee has met to begin preparing for NESCA’s September 12th Golf Outing at Shaker Ridge Country Club.  You will soon receive more details and registration information for the Golf Outing in the mail.  Our Program Committee, Trade Show Committee and other committees will also soon meet to plan their respective programs and activities.    

NESCA’s past leadership and staff have developed an association that has evolved over many years to be the standard that other subcontractor organizations emulate.  I will make every effort to ensure that NESCA meets member expectations for another great year full of information, education, advocacy and first-class service to all members.

 

Harold M. Hatfield, President

 


Court Finds Construction Manager Liable Under Labor Law Section 240  (Go Top)

                On May 5, 2005, the New York State Court of Appeals in a 4 to 3 Decision decided Timothy Walls, et al. v. Turner Construction Company, Appellant, Jordan Construction Company, Defendant.

                In this case, Turner Construction Company was acting as construction manager. There was no general contractor and the plaintiff was an employee of Jordan Construction Company which had been contracted by the owner for the replacement of windows at the school. The plaintiff was injured after a fall of approximately 12-15 feet while trying to construct scaffolding on the second floor window.

                The majority of the court held that although a construction manager of a worksite is generally not responsible for injuries under Labor Law Section 240(1), one may be vicariously liable as an agent of the property owner for injuries sustained under the statute in an instance where the manager had the ability to control the activity which brought about the injury. The majority of the court concluded by stating “the label of construction manager versus general contractor is not necessarily determinative. Thus, on the facts of this case, given (1) the specific contractual terms creating agency, (2) the absence of a general contractor, (3) Turner’s duty to oversee the construction site and the trade contractors, and (4) the Turner representative’s acknowledgement that Turner had authority to control activities at the work site and to stop any unsafe work practices, we agree that the Appellate Division was correct in holding Turner liable as a statutory agent of the school district under Labor Law Section 240(1)”.

                Judge R. S. Smith writing the dissenting opinion stated in part “Turner was a typical construction manager, did not have the kind of authority the general contractor has, and therefore should not be held liable.” Judge Smith continued to reject the majority conclusions and stated in part “a few benign safety enhancing provisions in a contract should not be a basis for imposing Labor Law Section 240(1) liability on a company whose role was primarily advisory.”

                In this case, the Court of Appeals imposed Section 240(1) liability on a construction manager who had such supervisory control and authority and broad responsibility over the plaintiff’s work as to become a statutory agent of the owner. The lesson to be learned for construction managers in this case is that when a construction manager remains in a strictly advisory role, he may avoid Labor Law Section 240(1) liability. However, where the construction manager assumes supervisory control and authority and broad responsibility over workers at a job site, it will subject itself to Labor Law Section 240(1) liability.

 

Terence J. Burke, NESCA Legal Counsel

 

OSHA 10-Hour Course Requirement Passed by Legislature  (Go Top)

 

                A bill that will require all public work employees to have completed OSHA’s 10-hour safety course has passed in both houses of the Legislature and will be sent to Governor Pataki for his consideration.  The bill, passed by the Senate on June 16th and by the Assembly four days later, specifically requires that all public work contract specifications to which the state or a local government is a party contain a provision requiring workers employed by contractors and subcontractors to be certified as having completed OSHA’s 10-hour safety course. 

If the Governor signs this bill into law, it will become effective 90 days thereafter, a time-period many believe does not provide contractors enough time to put all workers through a 10-hour course.  To remedy this problem, a second bill has been introduced that would extend the time-period to one year after the bill is signed into law.  New York is not the first state to consider a OSHA 10-hour requirement for public contracts.  The state of Massachusetts enacted a similar 10-hour course requirement in 2004.    

 

Workers’ Compensation Payroll Limitation Law Made Permanent  (Go Top)

               Legislation to make the Construction Employment Payroll Limitation Law permanent has been signed into law by Governor Pataki.  Signed by the Governor on June 7, 2005, this legislation will keep in place the payroll limitation law, which was originally enacted in 1998 to provide a more equitable distribution of workers’ compensation premium between high wage paying and low wage paying employers in the construction industry. 

The law applies to approximately 80 construction industry classifications, and applies a cap on the amount of payroll subject to premium calculations.  When originally enacted in 1998, the law phased in a decreasing cap on wages over four years.  Wages subject to premium calculations are currently capped at $750.      

                In addition, to account for different costs in different regions of the State, for rating purposes the law recognizes the three separate geographic territories of 1) New York City,       2) seven counties contiguous to New York City, and 3) all other counties (upstate).

 

Governor to Consider Multiple Prevailing Wage-Related Bills  (Go Top)

                No less than a half dozen prevailing wage-related bills being pushed by organized labor have passed both houses of the Legislature and will be sent to Governor Pataki for his consideration.  As follows is a short summary detailing each of these bills:  

List of Independent Contractors – Would require contractors and subcontractors on public works projects to submit a list of all “independent contractors” used on the project.  The list would have to be submitted within 30 days after completion of the project along with a $10 fee per independent contractor on the list.  Information required would include the name, social security number, job title and address for each independent contractor named.

Access to Certified Payroll Records – Would require public agencies and local governments to make available for public inspection and copying a contractor’s or subcontractor’s certified payroll records for all employees classified as apprentices.  Similar legislation has been vetoed by Governor Pataki in recent years.

Notice of Prevailing Wage Rates – Would require contractors and subcontractors on public works projects to provide written notification to all workers of the prevailing wage rates and supplements for their particular job classification.  Such written notice would be required to be given at the beginning of a project and every eight weeks thereafter with the worker’s paycheck.  The notice would also be required to contain a statement that workers are entitled to be paid the prevailing rate of wage, the Department of Labor’s address and phone number and, and a statement that it is the worker’s right to contact the Department if he is not receiving the proper wage.

Daily Head Count – Would require the engineer-in-charge or other agent representing the contracting agency to record a daily head count of all the workers on the project each day, enumerated by classification of worker, hours worked and at what pay rate.  The daily records must be submitted to the contracting agency’s fiscal officer and maintained for at least 3 years.

Subcontractor Criminal Penalties – Would clarify that subcontractors who fail to pay prevailing wages are subject to the same criminal penalties as contractors who fail to pay.

Off-site custom fabrication – Would apply the prevailing wage law to the fabrication and all drafting related to the fabrication of woodwork, cases, cabinets or counters and the fabrication of plumbing, heating, cooling, ventilation or exhaust duct systems, and mechanical insulation specifically designed and engineered for installation in a public works project. 

 

Thank You to All Wiltwyck Golf Sponsors

 

                NESCA wishes to thank all Tournament Sponsors, Tournament Supporters and Tee Sponsors for your generosity in connection with the 10th Annual NESCA/GBC Joint Golf Outing held on June 13, 2005 at the Wiltwyck Golf Club in Kingston.  Our sponsors were:

 

Tournament Sponsors

Arold Paving Co., Inc.

Fast Trek Steel

LHV Precast, Inc.

Marshall & Sterling, Inc.

Reliable Glass & Door Corp.

Shaker Computer

Vellano Bros., Inc.

 

 

Tournament Supporter

The Darlind Group

 

 

Tee Sponsors

Ashley Mechanical, Inc.

D.J. Heating & Air Cond.

Eastern Contractors Assoc.

Jeff Lowe Plumbing, Heating & A.C.

Newburgh Windustrial

Northern Fire Systems

Paychex, Inc.

Victaulic Co.

The Woodward Co.

 

Welcome New Member  (Go Top)

RLI Surety

3 Franklin Square, Suite 6, Saratoga Springs, NY 12866

 (518) 580-9950; FAX (518) 580-9976

Contact: Grant Gentner

 

MEMBER ANNIVERSARIES  (Go Top)

In July, the following members have reached milestone anniversaries as members of NESCA.  Thank you very much for your continued support!

 

Ten Years

Gridworks By McRoberts

M.V.P. Construction Co.

 

Twenty Years

Thorpe Electric Supply