(518) 869-9800
June 2002
Inside This Edition: NYS Adopts New Fire Prevention And Building Codes, NESCA Annual Meeting, President’s Message, Bankruptcy Court Decision Precludes Owner From Denying Mechanic’s Liens, Bits & Pieces, Minimum Wage Hike Passed In Assembly, Welcome New Members
NYS ADOPTS NEW FIRE PREVENTION AND BUILDING CODES GO
TOP
On March 6, 2002, Governor George E. Pataki announced that New York State has adopted new Fire Prevention and Building Codes that reflect current technology, product and safety standards and will enhance energy conservation requirements. “These comprehensive building and energy codes will ensure that our homes and workplaces are safe and energy efficient, while also spurring new construction and job opportunities across the State,” Governor Pataki said.
The
new model codes were adopted by a unanimous vote of the State Fire Prevention
and Building Code Council, culminating a four-year process of reviewing the
International Codes and making modifications for New York State in an effort to
replace the current outdated code.
The
new Uniform Fire Prevention and Building Code and State Energy Conservation
Construction Code will be comprised of eight separate code documents, which
combine the provisions of the 2000 International Codes, 2001 supplement to the
International Code, and NYS modifications adopted by the Code Council. The Uniform Code applies to all communities
across New York State, except New York City (which has its own building and
fire code), where only the Energy Code will be in effect. The eight code documents are entitled as
follows:
Both the new Uniform Code
and the Energy Code will be adopted July 3, 2002. For the Uniform Code, this will begin a 180-day transition period
(through December 30, 2002), during which time regulated parties will have the
option of submitting building permit applications for construction regulated
either under the current code or the newly adopted code. Following
the transition period, the new Uniform Code will fully take effect. There will be no transition period for the Energy Code.
The new codes will be
published by the International Conference of Building Officials (ICBO). Code documents will be available for
purchase beginning June 1, 2002 by calling ICBO customer service at (800)
284-4406 or visit ICBO’s Web site at www.icbo.org
for additional information.
NESCA ANNUAL
MEETING GO TOP
NESCA’s
June 13, 2002 membership meeting will be the association’s “Annual Meeting”, at
which time we will hold an election of officers to serve during the 2002-2003
fiscal year. All members are encouraged
to attend this meeting and cast your vote.
The nominating committee has recommended the following slate of officers
for member approval:
PRESIDENT
James Elacqua
Clemente Latham Concrete
VICE PRESIDENT
Jeffrey Senft
S&O Construction Services, Inc.
TREASURER
Kevin Garrity
Rose
& Kiernan, Inc.
SECRETARY
Harold Hatfield
Maximum
Security Products Corp.
PRESIDENT’S
MESSAGE GO TOP
As
I conclude my term as president of NESCA, this will be my final Newsletter
message to the membership, and I must say that it has truly been a pleasure to
have served the association in this capacity.
Over
the last 12 months, I believe NESCA has remained steady on course as the only organization
that exclusively represents the interests of specialty trade subcontractors and
suppliers in Northeastern New York State.
As I review the past year, a few things stand out in my mind. First, I am extremely happy with this year’s
membership growth. At this point, we’re
on course to conclude the year with a net membership increase of approximately
20 members. This tells me that after
more than 30 years, NESCA continues to hold true to its purpose and mission,
and as such, still attracts the attention and interest of new subcontractors
and suppliers. Much of the credit for
this year’s membership growth should be given to Membership Committee Chairman
Mark Woodward and Retention Committee Chairman Kevin Garrity, The work of Mark and his committee has
resulted in more than 35 new members this year, and Kevin’s efforts produced a
member retention rate of nearly 92%!
Many thanks to Mark, Kevin and your respective committees.
This
year, NESCA began to meet informally with other large subcontractor
associations that were formerly affiliated with the American Subcontractors
Association, to network and trade ideas on legislative initiatives, member
benefits and services and other association activities. These associations are
located in Chicago, New York City, South Florida, Tuscon and Boston, and like
NESCA, were once among ASA’s largest chapters.
Each of the groups involved in these meetings have agreed that
increasing the level of communication and maintaining closer ties will serve to
the advantage of everyone. I hope
NESCA’s ongoing contact with these other organizations will bring us new ideas
to consider here in New York.
This
year NESCA also enjoyed the most comprehensive educational programming in our
history. Between October and May, our
members have been offered more than 35 management seminars, supervisory
training programs and safety courses.
The educational partnership we established several years ago with
Eastern Contractors Association and the General Building Contractors of NYS has
proven to be extremely beneficial for our members.
I
also believe we improved NESCA’s office operations this year with the addition
of Sue Furlong to our staff as administrative assistant. Sue is well-known and well-liked by many
members and does a great job!
I
want to thank NESCA’s Board of Directors and all members who served on
committees this year for your hard work and dedication to the
organization. A special thank you goes
out to Walter Breakell who served as my director-at-large on the Board.
I’d
like to conclude by saying that NESCA is constantly and diligently working on
behalf of subcontractors and suppliers every day. Without NESCA, all subs and suppliers would be left without a
voice and completely at the mercy of our State Legislature and regulatory
agencies. Please remember this when you
receive your invoice for 2002-03 membership dues.
BANKRUPTCY COURT DECISION PRECLUDES OWNER FROM DENYING
MECHANIC’S LIENS GO TOP
On
April 8, 2002, the Supreme Court, Appellate Division, Second Department, handed
down its decision on MJD Construction, Inc., et al., plaintiffs v. Woodstock
Lawn & Home Maintenance, et al., defendants, Poughkeepsie Galleria Company,
appellant, Joseph Hommel, Jr., respondent.
Poughkeepsie Galleria Company (“Galleria”), owned a parcel of real
property in Poughkeepsie where it built a shopping center. Galleria’s general contractor hired three
subcontractors who later served and filed mechanic’s liens on the project. The contractor later filed for bankruptcy
and Galleria moved in the bankruptcy proceeding to exempt from the discharge
$921,804 which Galleria had paid to the contractor on behalf of the
subcontractors. Galleria alleged that
the contractor had defrauded both Galleria and the subcontractors by retaining
this money. The bankruptcy court agreed
and awarded Galleria the demanded sum holding that the contractor had indeed
committed fraud on Galleria and the subcontractors.
In the instant mortgage foreclosure action, the Appellate Division held that Galleria was now estopped from denying that it owed money to the contractor’s subcontractors since such a position would conflict with its stance before the bankruptcy court. The Appellate Division further held that the Supreme Court was entitled to take judicial notice of the record and the judgment in the related bankruptcy proceeding. This case illustrates that a determination made in the bankruptcy court may inure to the benefit of subcontractors pursuing their lien rights in the New York Supreme Court. Where it is established in the bankruptcy court that monies are due and owing to the subcontractors, New York State courts will take notice of such a determination in reviewing mechanic’s lien foreclosure actions.
Terence J. Burke, Esq.
DASNY Survey – NESCA members were recently faxed a survey
intended to gather information about your experiences on NYS Dormitory
Authority (DASNY) projects. In recent
months, many members have notified the NESCA office about problems experienced
on DASNY projects, particularly dealing with the processing and payment of
change orders and project close out/release of retainage. NESCA periodically meets with DASNY
officials to discuss that agency’s contract administration procedures and to
try to find solutions to problems our members may be experiencing. Once the survey information has been
compiled, we will request another meeting with DASNY to address the problems
associated with processing of change orders and project close out. Enclosed with this Newsletter is another
copy of the survey. If you perform work
for DASNY and have not yet returned your completed survey form, please do so as
soon as possible.
Bond to Discharge a Lien – On April 23rd,
an Empire State Subcontractors Association (ESSA) bill that affects the
discharge of liens was reported out of the Senate Judiciary Committee to the
floor of the Senate. Currently in New
York State, undertakings to discharge liens, which are usually in the form of a
bond, are required to be set by a judge with or without a stipulated agreement
between the surety providing the bond and the lienor. The time and expense of this procedure can be eliminated by
statutorily setting the amount of the undertaking at given percentage of the
lien amount. This legislation is
modeled after a New Jersey law that sets the amount of the undertaking at 110%
of the amount of the lien. ESSA is
engaged in an effort to win passage of this legislation by the full Senate, and
to then move the bill out of committee to the floor of the Assembly.
Tort Reform – On May 7th, New Yorkers for Civil
Justice Reform (NYCJR), a statewide coalition of more than 1,100 business
organizations, local governments, and professionals of all types united in the
goal of ending lawsuit abuse, held a Lobby Day in Albany to try to convince
lawmakers of the need for tort reform in New York State. NESCA’s state affiliate, the Empire State
Subcontractors Association (ESSA), is a member of NYCJR and participated in the
lobbying effort. ESSA is particularly
interested in reform of Sections 240 & 241 of the Labor Law, which has
caused skyrocketing liability premiums in the construction industry in recent years.
MINIMUM WAGE HIKE PASSED IN
ASSEMBLY GO TOP
On April 10, 2002, the New
York State Assembly passed a bill that would raise the state’s minimum wage
beyond the current $5.15 per hour.
The bill, A.5132 (Nolan), would increase the minimum
wage to $6.75 per hour on January 1, 2003 and would then increase it annually
by the increase in the Consumer Price Index (CPI) for New York/Northern New
Jersey as published by the Bureau of Labor Statistics. The bill passed with 19 “no” votes, which
were cast primarily by Assembly Republicans.
A similar bill introduced in
the Senate, S.4749 (Spano), would also raise the minimum wage to $6.75 per hour
on January 1, 2003, but would use a different escalator for annual increases
thereafter. The Senate version would
increase the minimum wage annually to reflect the increase in the state average
weekly wage as calculated by the Department of Labor. The Senate bill has been referred to the Senate Labor Committee.
WELCOME NEW MEMBERS GO TOP
Commercial Coverage, Inc.
125 Wolf Road, Suite 301
Albany,
NY 12205
(518)
458-9287; Fax (518) 458-9434
Contact: Rob Cantwell
Hawk Drilling Co., Inc.
354 Stone Church Road
Ballston Spa, NY 12020
(518) 885-7952; Fax
(518) 885-8973
Contacts: Bill Baldwin,
Janet Baldwin
KMK Roofing and Sheet Metal
1347 Van Patten Road
Duanesburg, NY 12056
(518) 895-5449; Fax
(518) 895-2217
Contacts: Kristian
Keller, Lisa Keller
Leto Communications, Inc.
18 Petra Lane
Albany, NY 12205
(518) 452-8239; Fax
(518) 464-2653
Contacts: Daniel J.
Leto, Chuck Rath
Martino Tile, Inc.
162 Henry Street, P.O.
Box 1257
Binghamton, NY 13902
(607) 722-3534; Fax
(607) 722-4965
Contacts:
Frank Martino, Frank Martino, Jr
Southern Tier Insulations
322
Chaumont Drive
Endwell,
NY 13760
(607)
754-6464; Fax (607) 754-5777
Contacts:
Linda Vough, Tab DeNovellis
Ward Pavements, Inc.
P.O.
Box 427, 2671 Route 17M
Goshen, NY 10924
(845) 294-8341; Fax
(845) 294-6825
Contact: William Leo,
Jr.
NESCA Day at
the Races!!
Saratoga Race Course, Thursday, July 25, 2002, $35 Per Person
On Thursday, July 25, 2002, NESCA will hold its 4th Annual “Day at the Races” at Saratoga Race Course. Come experience the tradition of Saratoga with your friends and peers at NESCA! We have reserved 120 spots for the Paddock Tent luncheon package which includes clubhouse admission, Post Parade Program, hot and cold buffet, tax and gratuities. Bar service, private parimutuel windows and closed-circuit televisions are located within the tent. Members may make reservations for this event by completing the enclosed reservation form and mailing it back to the NESCA office with your payment of $35 per person. Because we have only 120 tickets available, we will take reservations on a first-paid, first-served basis.