(518) 869-9800
October 2003
Inside this
Edition: 23rd Annual Trade Show October 9, 2003, Insurance Department Announces W.C. Rate Hike, President’s Message, State Court Of Appeals
Holds Employer Organization Can’t Claim Against Surety Bond, W.C.
Premium Basis To Change For Building Demolition, ESSA Lien
Law Bill Delivered To Governor, Calendar Of Events, Welcome New Members,
ESSA Workers’ Compensation Safety Group Can Offer Cost Savings
For Members
23RD ANNUAL TRADE
SHOW OCTOBER 9, 2003 (Go Top)
Business
owners and managers involved in the commercial construction industry who wish
to learn about the latest in construction products and services will have the
opportunity to engage in some one-stop shopping when NESCA hosts its 23rd
Annual Trade Show on Thursday, October 9, 2003 at the Century House in
Latham. The Trade Show, which will be
held from 4:00 – 8:00 p.m., will expose subcontractors, general contractors,
design professionals, manufacturers, and public owners to a wide variety of
products and services in virtually every trade category.
It
is anticipated that all available exhibit space will be sold out with
approximately 45 exhibitors on hand, and total attendance at the Trade Show is
expected to top 500. This year,
additional parking with shuttle service will be available at the Guptill’s
Arena parking lot (south side of
the lot), just north of the Century House on Route 9.
NESCA
members who have attended the Trade Show in the past know that it is much more
than just a trade show, it is an industry event calculated to bring the various
segments of the commercial construction industry together for an evening of
business networking…………and fun! While
taking in the exhibits, attendees will be treated to a variety of hors
d’oeuvres, carving stations, and other great food at the International Food
Bazaar. Lots of door prizes will be
given away by exhibitors, and a “Super 50/50” drawing will be held, with a guaranteed
payout of at least $1,000 to the winner!
NESCA’s
condensed 4 ˝ hour format, unlimited food and bar, exciting prizes, networking
with construction industry professionals and the chance to see the most
complete line-up of commercial construction products and services available in
Northeastern New York is sure to make this event one that NESCA members will
not want to miss. Once again this year,
the admission fee for the Trade Show is $20 per person for advance registrations
and $25 at the door. To register to
attend the Trade Show, contact the NESCA office at (518) 869-9800.
INSURANCE DEPARTMENT ANNOUNCES W.C. RATE HIKE (Go Top)
NYS Superintendent of Insurance Gregory Serio has announced that the Insurance Department has approved a 1.7% average workers’ compensation rate increase that will take effect on December 1, 2003. Following the Insurance Department’s initial decision to deny the New York Compensation Insurance Rating Board’s (NYCIRB) rate increase request of 11.3%, NYCIRB made a subsequent filing request for a 3.7% rate increase on July 18th. The Insurance Department ultimately approved a rate increase of 1.7%.
“The
Department continued to work aggressively with NYCIRB after their filing
requests failed to adequately address the Department’s concerns resulting in
the Department’s final determination that a 1.7% overall rate increase is
adequate,” said Serio.
NESCA
members should heed the fact that while the overall average increase for all
classifications of business is 1.7%, the average increase for construction
classifications will be much higher, about 11.1%.
23rd Annual NESCA
Trade Show
Century House, Latham
Exhibits
Open:
Food Bazaar &
Hors D’oeuvres
4:30 – 8:30 p.m.
Open Bar
4:30 – 8:00 p.m.
Super 50/50
Drawing
8:00 p.m.
PRESIDENT’S MESSAGE (Go
Top)
NESCA’s first membership meeting of the 2003-04 year was held September 11, 2003 at the Century House, and those members who attended received some very important and useful information about New York State’s “Clean Indoor Air Act”, the new law that governs smoking at the workplace. Brian Miner, the Tobacco Enforcement Program Coordinator for the New York State Department of Health made a presentation on the smoking ban, and answered many questions members had, including questions about smoking at construction worksites and in company equipment and vehicles.
Members who attended the membership meeting were also provided with updates and information on such issues as: the workers’ compensation rate increase that goes into effect December 1, 2003; payment for stored materials on OGS projects; legislation being sent to the Governor that would increase the threshold for commercial claims court actions from $3,000 to $5,000; efforts being made by NESCA to get the State Education Department to enforce the Board of Regents rule on design delegation; and the recent federal Court of Appeals decision on the annualization of prevailing wage supplements. We also conducted the Business Practices Interchange, where members were provide first-hand information on the bidding and payment practices of various general contractors.
I’ve highlighted all the things covered at our first membership meeting of the year because I’d like to see more NESCA members attend future meetings. Please remember that even if our featured topic doesn’t interest you, there are always updates on industry issues, not to mention the networking with other subcontractors and suppliers, which make our meetings very valuable.
Members may recall that several months ago NESCA conducted a general liability survey in an effort to gage member interest in NESCA putting together a group general liability insurance program. A task force was appointed to review the survey results and to make a recommendation to the Board of Directors. After examining several options, the task force has recommended that NESCA join forces with the Subcontractors Trade Association (STA), our sister chapter in New York City, and attempt to put together a statewide liability insurance program that would be open to participation by members from all five ESSA chapters. STA had previously retained the Willis Agency to assist them in finding interested carriers. In the coming months I will keep members fully updated on any progress we make in this endeavor.
I am pleased to report that NESCA’s Board of Directors has approved the establishment of an Alliance between NESCA and OSHA. The purpose of the Alliance will be to establish a collaborative relationship to develop training and education programs for NESCA members and to foster safer workplaces. A task force has been put in place to develop the Alliance concept, and members will be hearing much more about this in the months to come.
Jeffrey B. Senft, President
STATE COURT OF
APPEALS HOLDS EMPLOYER ORGANIZATION CAN’T CLAIM AGAINST SURETY BOND (Go Top)
The
New York State Court of Appeals recently handed down a decision in the Tri-State
Employment Service v. Mount Batten Surety Company, 99 N.Y.2d 476 (April
1, 2003). In this case, the contractor
retained Tri-State Employment Services, Inc., a professional employment
organization to provide employee leasing services which included the
organization’s hiring of the contractor’s employees on a lease-back arrangement
and the organization’s payment of their wages and payroll taxes and other
employee benefits. The organization was
then to be repaid for these payments by the contractor to include a fee for its
services. Upon default by the
contractor, the organization made a claim against the surety company. The court found that the organization did
not provide the functions of a work site labor or material supplier which would
have been protected by surety bonds.
The organization’s primary role as a provider of administrative and
human services “gives rise to a presumption that the professional organization
does not provide labor.” The court
further stated that this presumption could be rebutted if it were shown that
the organization exercised substantial “direction and control of work site
employees.” Evidence supporting such
rebuttal was not present in this case and the court concluded that the
organization was not a labor supplier and could not claim that status under the
bond.
In the first two months of
NESCA’s fiscal year, nearly 80% of NESCA’s members have paid their 2003-04
membership dues. We thank the early
payers and ask all other members to pay your dues as soon as possible.
W.C. PREMIUM BASIS TO CHANGE FOR BUILDING DEMOLITION (Go Top)
The New York Compensation Insurance Rating Board has announced that effective October 1, 2003 for new and renewal policies, workers’ compensation premiums for building demolition will be based on payroll instead of cubic volume. Under this new method, which has been approved by the State Insurance Department, building demolition contractors will be treated under the same rating methods as all other contractors in New York and similar to demolition contractors in jurisdictions outside New York.
The
classification that will apply to building wrecking starting with the first
renewal on or after October 1, 2003 is classification Code 5701 “Building
Wrecking – Not Marine”. The class
carries a manual rate of $10.59 per hundred dollars of payroll and is subject
to further revision by a New York Construction Payroll Limitation Plan
territorial surcharge, individual experience rating and other rating factors.
ESSA
LIEN LAW BILL DELIVERED TO
GOVERNOR (Go Top)
An
Empire State Subcontractors Association program bill (S.2922/A.6400A) that was
passed in both houses of the Legislature in June, has been delivered to
Governor Pataki for his consideration.
This “technical corrections” bill is intended to correct a discrepancy
in Section 21 of the Lien Law, which was created by a previous change to
Section 18 of the Lien Law. Section 18
was amended by ESSA in 2000 and changed the six month filing period for public
improvement liens to one year. This
latest amendment would make the same change in Section 21, thereby making
Section 21 consistent with Section 18 of the Lien Law. ESSA expects this amendment to be signed by
the Governor.
DID YOU KNOW…..
…..that on private commercial
construction projects valued at more than $250,000, subcontractors and
suppliers have the statutory right to receive notice from the owner when
payments are made to the general contractor?
General Business Law Section 756-A requires owners, upon the written
request of the subcontractor, to notify the subcontractor within 5 days of
making progress or final payment to the general contractor.
CALENDAR OF
EVENTS (Go Top)
STP
Unit #3 Course Begins
Prob.
Solving & Decision Making
Building
Industry Center, 6 pm
October 2,
2003
Board of
Directors Meeting
Century House, Latham, 6 pm
October 3-4,
2003
Biloxi,
Mississippi
October 9,
2003
23rd
Annual NESCA Trade Show
Century House, Latham, 4 pm
Building Industry Center, 6
pm
Century House, Latham, 12
Noon
Building Industry Center, 12
Noon
Century House, Latham, 5 pm
Century House, Latham, 6 pm
WELCOME NEW MEMBERS
(Go Top)
American Sun Control
1 Pineview Court
Waterford, NY 12118
(518) 237-7375; Fax (518)
237-7375
Contact: Rob Bouchey
CCM Services
125 Dahlia Street
Schenectady, NY 12306
(518) 355-4594
Couch Dale, PC
29 British American Blvd.
Latham, NY 12110
(518) 220-9577; Fax (518) 220-9587
Contacts: Mark Couch, Kimberlee
Dale
DL Flow Tech
531 Fishkill Road
Cold Spring, NY 10516
(845)265-2828; Fax (845) 265-2745
Contact: Dennis LaVopa
S.M. Gallivan, LLC
215 Oakwood Avenue
Troy, NY 12182
(518) 271-6100; Fax (518)
271-7505
Contact: Sean Gallivan
Techno Metal Post of NY, Inc.
819 Route 67
Ballston Spa, NY 12020
(518)884-2600; Fax (518) 885-8494
Contact: Jean Lavigne
USG Building Systems
21 Robinwood Drive
Clifton Park, NY 12065
(518) 275-9180; Fax (518)
383-5709
Contacts: Kristin O’Keefe, Steve
Adelman
ESSA WORKERS’ COMPENSATION SAFETY GROUP CAN OFFER COST
SAVINGS FOR MEMBERS (Go Top)
With
workers’ compensation rates scheduled to go up on December 1, 2003, the time
may be right for NESCA members to consider participating in the Empire State
Subcontractors Association (ESSA) Workers’ Compensation Safety Group. The ESSA Safety Group 560 was formed in
1994, and offers competitive, upfront discounts ranging from 20-25%. These discounts are offered to all existing
members as well as new members of the Safety Group. In addition, the Safety Group has issued dividends for eight
consecutive years averaging 22.5%. The
ESSA Safety Group is administered by Allied Safety Management, Inc., and group
members receive the services and representation they need to maximize cost
savings with: experience modifications; construction credits; discounts;
payroll classification and audits; claims management; safety consultation and
more.
The ESSA Safety Group has one of the strongest contingent
balances among all of the construction safety groups in New York State. Members who would like more information on
the ESSA Safety Group should contact John Blackmore at Allied Safety Management
– (516) 733-9252.