Spring 2016 Newsletter - Minnesota Subcontractors Association

On the Level
The Subcontractors Voice
Minnesota Subcontractors Association
Spring 2016
HEADLINES
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OVERVIEW: THE 2016 LEGISLATIVE SESSION
TOPS RECOGNIZES BEST PRACTICES
CALL FOR NOMINATIONS - MSA BOARD OF DIRECTORS
LEGISLATORS HEAR MSA SUBCONTRACTORS
IN MEMORY OF PATRICK KENNEDY
WARRANTIES IN CONSTRUCTION CONTRACTS: PART 3
THE UNEXAMINED CONSTRUCTION FIRM
MSA SAFETY NETWORK
OSHA UPDATES
Executive Director Message
Mike Schmaltz
The 2016 session of the Minnesota Legislature begins on March 8. It expected to be
an unusual session considering the amount and type of work that needs to be done.
This is further complicated because every legislator is up for re-election in a
contentious and strange election year. You can read a good summary on the upcoming
session by our lobbyist Nick McNeely on the next page.
Nick and I will be asking for your support with legislators between now and the end
of the session. I can't overstate how important this is. Every time we talk to
legislators they tell us how much difference it makes when they hear directly from you
- their constituents. You can help most by: #1 Personally visiting with them; #2
Calling them by phone; #3 Writing to them.
MSA membership is at an all time high. Subcontractors are the backbone of the
construction industry, if we all speak - we will be heard.
Indicators for the industry continue to be positive - everyone is busy. Don't forget to
stop and "sharpen the saw". We continue to offer unique education, safety and
networking events. Take a look at what we have done and will be doing in the pages
that follow.
UPCOMING
EVENTS
HAPPY HOUR MEET & GREET
@ RADISSON HOTEL
MARCH 24
ROSEVILLE, MN
MSA SAFETY
NETWORK
@ MIDLAND HILLS COUNTRY
CLUB
APRIL 5
ROSEVILLE, MN
SUCCESSION PLANNING
@ MIDLAND HILLS COUNTRY
APRIL 12
ROSEVILLE, MN
EFFECTIVE SALES IN THE
CONSTRUCTION INDUSTRY
@ HELLMUTH & JOHNSON
APRIL 19
EDINA, MN
HAPPY HOUR MEET & GREET
@ GRUMPY’S BAR & GRILL
APRIL 28
ROSEVILLE, MN
Minnesota Subcontractors Association
1123 Glenwood Ave., Suite 100, Minneapolis, MN 55405
Office 763-413-0669 l Fax 763-413-1131 l www.msamn.com
On the Level
The Voice of Subcontractors
Overview: The 2016 Legislative Session
Contributed by Nick McNeely, MSA Lobbyist
The legislative session begins at noon on March 8, 2016. Not only is this the latest session start date in decades,
but legislators have more work than usual for the second year of a biennium.
The increased workload is due, in part, to the failure of the House and Senate to pass a Transportation Bill, a Jobs
Bill, and a Tax Bill in 2015 — leaving a majority of the tough work for this session. In addition to these bills,
legislators hope to pass the following bills:
• Bonding Bill – and allocation of additional budget surplus dollars for capital construction projects
throughout the state of Minnesota;
• Employment Bill – to address the growing rate of unemployment on The Range and the shortage of
employees in the Rochester area;
• Federal ID Conformity Bill – granting MN the right to begin working to meet the new 2018 federal
identification standards;
• Racial Equity Bill – to improve the increasingly visible racial disparities and quell the concerns from
growing grassroots organizations.
In addition, legislators also have thousands of other pending bills that individuals and interest groups having been
waiting months, or years, to see passed. It’s not just the increased workload that has legislators running around
frantically — the stakes are higher than usual because of the presidential election, and more importantly the
statewide elections for MN House and MN Senate offices.
MSA at the Capitol in 2016
As always, your MSA lobbyist, Nick McNeely, will be at the state capitol advocating for subcontractors every
day of session. Specifically, the MSA is working to pass a Retainage Reform Bill (HF2451/SF1898) and a bill to
close the “Duty to Defend” loophole (HF1099/SF924).
Regarding Retainage, just ask yourself these questions: Are the current retainage practices negatively impacting
your business? Is 10% retainage too much? Is retainage held too long? The MSA believes the answer to each
question is yes, and something must be done – it’s Retainage Reform.
To deal with these problems the Retainage Reform Bill does four very reasonable things: 1) Caps retainage at 5%;
2) Requires payment of retainage within 60 days of “substantial completion” of the project; 3) Gives a party
whose retainage has been wrongly withheld the right to recover the fees associated with collecting the wrongly
withheld money; and, 4) Explicitly protects all parties from having to pay retainage to a business, until that
business has properly performed their work.
The MSA continues to meet with the AGC in hopes that they will acknowledge the concerns of their industry
partners, the Subcontractors of MN, and help fix the inequitable retainage practices by supporting the Retainage
Reform Bill. To date, the AGC has not agreed to support these comprehensive, yet reasonable, reforms.
The MSA will continue to meet with the AGC, but our grassroots efforts at the Capitol are more important now
than ever. If the Retainage Reform Bill will better your business and improve cash flow - now is the time to
contact your legislators. The MSA is here to navigate that process with members.
Regarding Unfair Duty to Defend Clauses, the MSA resolutely opposes the commonplace contract terms that
require a subcontractor to pay the general contractor’s attorney’s fees, when the general contractor is at fault. To
change the law, the MSA advocates passing HF1099/SF924 – a bill that stops this disturbing risk transfer practice.
On the principles of basic fairness, ensuring safe construction, and holding parties responsible for their own
actions – we advocate change. The current practice wrongly drags subcontractors into litigation, increases your
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insurance premiums, and drives up the cost of construction – the MSA believes that each party should be
responsible for their own work.
If you want to see these changes pass into law, please let your MN House and Senate member know. For more
information about how to contact your legislators, or if you have any
questions, contact your MSA lobbyist, Nick McNeely, at
Mike Schmaltz & Aaron Dean
[email protected] or (651) 206-6753.
T.O.P.S. – MSA Recognizes Best Practices
Mike Schmaltz, Executive Director MSA
The Minnesota Subcontractors Association recognized Best Practices in
the construction industry at its 16th Annual TOPS Award Banquet on
January 26, 2016. Awards are for the year 2015.
Individuals, companies and construction students were presented with
awards and scholarships. MSA members nominate and vote on large
and small General Contractors, Project Managers, Superintendents and
Construction Professionals. Winners are selected considering work
practices using specific criteria including: contract terms and
conditions; project safety and security; reasonable schedules, competent
project managers, timely payment and others.
Three Scholarships were presented to students pursuing careers in
construction. One of the Scholarships was dedicated to the memory of
Patrick Kennedy, a past President and winner of the MSA Champions
Award. The winner of the award is selected based on strong leadership
qualities and leadership. Nicholas Carlin, a student at North Dakota
State University was the first recipient of this scholarship. MSA has
awarded over $38,000 in scholarships.
Not on the agenda was a Champions Award. The recipient of this
award is selected by past MSA Presidents together with past Champions
Award winners to recognize significant accomplishments in the
development of MSA and work in attainment of its objectives. The
award was presented this year to Executive Director Mike Schmaltz.
Allie Lloyd, Nick Carlin & Jake Bauer
The Project Manager Award for 2015 was presented to Dave
McLaughlin. Dave is with McGough Construction, a past TOPS
winner and the home of other individual award winners.
Ryan Companies US stood out during the evening taking home three
awards: Large General Contractor (over $100M annual sales), the
Construction Superintendent award to Al Green. and the Construction
Professional award to Jason Gabrick. This is second year in a row for
Ryan winning the prestigious Large General Contractor Award.
Donna Gulden & Dave McLaughlin
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Ryan Team Accepting Award
Loeffler Construction was
presented with the Small
General Contractor Award
(under $100M annual sales).
Loeffler is a past TOPS
finalist and Conrad Hoeg with
Loeffler was also a finalist for
the Superintendent Award.
Loeffler Team Accepting Award
Call for Nominations
It is hard to believe but we are only 3 months away
from the MSA annual meeting in May. There will be
open spot(s) on both the Board of Directors and the
Executive Board for the 2016 – 2017 year.
The MSA has added many new members in both 2015
and so far in 2016. The current Board of Directors
wants to make sure that all members, both new and old,
have an opportunity to get involved with setting the direction of the association for the upcoming year. With that
in mind, we are looking for members that have an interest in serving, or nominating another member, to serve on
the Board of Directors. As Past President, I will serve as the Chair of the nominating committee.
We will be electing a slate of officers and directors for the new year at the Annual Meeting. Current officers and
board members are listed on our website. Board members elected this year will serve for a two year term
beginning on July 1, 2016. The Board meets six times per year; members determine MSA policy, action and
objectives.
If you wish to nominate someone, or serve on the Board yourself, please respond by March 18, 2016. This is an
opportunity to help advance the cause of subcontractors across the state! We need your help - Call Today!
Thanks Steve Schiltz ([email protected]) or Mike Schmaltz ([email protected])
Legislators Hear MSA Subcontractors
Understanding Minnesota Construction Statutes & "Duty 2 Defend"
In December, Minnesota Subcontractors heard President Aaron Dean and Chapter Attorney Curt
Smith conduct a review of statutes affecting the construction industry. A large audience engaged in
a robust discussion of the issues with a focus on the need to reform indemnification and eliminate
the "Duty to Defend" imposed in many construction contracts.
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Sen. Vicki Jensen
Spring 2015
On the Level
Rep. Bob Loonan
The Voice of Subcontractors
Chief authors of the reform statutes (SF924/HF1099) Senator Vicki Jensen and Representative
Bob Loonan addressed the group following the discussion.
What is your Retainage Strategy?
Moderated by MSA President and attorney Aaron Dean, a panel of subcontractors and
professionals reviewed current retainage practices in February. Subcontractor Panelists
included Nick Frattalone, Frattalone Companies; Julie Fuentes, Medina Electric; and
Doug Scheiffer, Northland Concrete & Masonry. Professionals Mike Utz of Clifton
Larsen Allen; Jeffrey Nicolet, Wagner, Falconer & Judd and MSA Lobbyist Nick
McNeely joined in the discussion of retainage practices and problems before retainage
Bill Authors Sen. Kevin Dahle & Rep. Jason Rarick. Senator Dahle has been the Chief
Senate Author of Retainage Reform Bill SF1898 for years. Rep. Rarick
Rep. Jason Rarick
authored the House Companion HF 2451 this year and is an Electrical
Sen. Kevin Dahle
Contractor.
The through discussion between the panelists and subcontractors provided legislators with an in depth view of
retainage issues.
Calls to your legislators for support on these bills are very important. We will be reaching out for support during
the upcoming session.
In Memory of Patrick Kennedy
MSA lost a long time friend on December 28, 2015 following a
battle with cancer. This battle, or as he and his family described
it "Pat's Unexpected Journey" was handled as Pat handled
everything; with optimism, valor and a unfailing sense of humor.
Pat was an ardent supporter of MSA, his clients and the interests
of the construction industry. He was Vice President of Kraus
Anderson insurance and was with them since 1985. He cared
deeply about the Subcontractor community and cherished the
many friendships he made.
Pat has been active with MSA since 1993. He served on the
Board of Directors for many years and was a member when he
passed. He was President of MSA for two terms between 2006 2008. During that tenure, he was very generous with his time as a
committee member, a frequent contributor to our newsletter,
event sponsor and as a presenter for a number of education
programs.
Champion Award Winners
John LLoyd, Pat Kennedy & Ken Rademacher
Pat was always a valuable resource on construction insurance issues. His knowledge and presentation skills were
utilized by many professional organizations. MSA recognized Pat with the presentation of its Champions Award
in 2013. Few can match his contributions; he was a truly exceptional person. We miss him.
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MSA Safety Network
Are you missing a great opportunity? MSA formed a safety network
last October. Well attended presentations have covered:
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Pre-employment Testing
Workmen's Comp Claims Handling
Drug Testing & Policies & Documentation
Cold Weather Safety & Policies
Early Return to Work - Best Practices
Leading Indicators for Construction Safety
Establishing a Safety Culture with New Employees
The purpose of the group is to establish a network for owners, managers etc. with responsibility for safety. We
identify best practices - share & learn from what others are doing. This forum addresses the needs of companies
that may not be large enough to have a formal safety program. We survey you the subcontractor, and set up
programs on safety related topics in this series of ongoing meetings.
Meetings are on the first Tuesday of each month. Events are free or low cost for members. Watch for
announcements.
Announcements
Congratulations to Jason Weld, Senior Project Manager at
Empirehouse, Inc.
Empirehouse, Inc., a Glazing Specialty Contractor, has promoted Jason Weld to the position of
Senior Project Manager. Weld is a 2003 graduate of the University of Kansas with a BA in
Architecture, joining the Empirehouse team in 2006. His most recent project was with
Mortenson Construction for the University of Minnesota Microbiology Center on the
Minneapolis campus, now nearing completion. Weld will manage the Project Manger
Department, the Drafting Department and oversee large projects.
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Congratulations to Tyler Dreyer, Vice President at Gresser Companies
Gresser Companies, a comprehensive concrete and masonry company, has promoted
Tyler Dreyer to the position of Vice President. Dreyer is a 2010 graduate of the
Minnesota State University – Mankato with a BS in Construction Management.
Formerly worked as a project manager with Gresser Construction. Most recent
projects being Hy-Vee, Mary Brigh Bed Tower at Mayo Clinic, The Venue at
Dinkytown and Regatta Condos – Lake Minnetonka.
Spring 2016 Career Fair
Dunwoody College of Technology invites you to
join us for our semi-annual, school-wide Career
Fair.
Tuesday, April 5
9 a.m. - 12 p.m.
Dunwoody College of Technology
818 Dunwoody Blvd.
Minneapolis, MN 55403
Benefits
National Subcontractors Alliance
Reliable, cost effective communication is critical to the
success of any business, large or small. In a world of
increasing travel hassles and expense, more businesses are
turning to audio and web conferencing technology to save
their employees time while reducing travel expenses.
Through the NSA InterCall Program members will save up to 50%1 on per-minute audio conferencing and web
conferencing.
Program Features:
• Pay as you go pricing means you will only be billed for the minutes you use
• Access to web conferencing services such as IUM 5, Cisco WebEx™ and Adobe® Connect™
• Multimedia service available, combines audio and web conferencing into a lower rate bundle
• Enjoy simple enrollment and receive a welcome email within 48 hours
• Wallet cards will be mailed providing another source for your conferencing information
• Easy e-billing with no monthly minimums
Take advantage of your special NSA member pricing today! To enroll, click here or call 1-800-636-2377 from 8
am – 6 pm EST Monday through Friday.
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Welcome New Members
American Stucco Enterprises
American Stucco Enterprises, LLC is a Minnesota based corporation specializing in
conventional stucco, EIFS and other aesthetic and structural claddings.
Archer Mechanical
Archer Mechanical is dedicated to achieving the highest quality of mechanical service while providing value to
our customers. We are committed to customer satisfaction through our service and communication.
http://www.archermechanical.com/
Berg Drywall
At Berg, we provide the highest quality products and services while adhering to
accelerated work schedules. Our services include Plastering, Paint and Acoustical. For
the customer, it is one less subcontractor, fewer scheduling challenges and offers a
single source of accountability. http://www.berggroup.us/
More New Members on Page 13…
The Unexamined Construction Firm
Ted Jorgensen, Surety Account Executive, CSDZ
It has been said an unexamined life is not worth living. That may be overkill, but examining the financial health
of your firm could change your company’s life. The creditors your firm depends upon, your surety and your
bank, already check in on your firm’s health regularly and you should track your standing as well.
Monitoring the evolution of your company can help you identify tangible success. There are fundamental metrics
a creditor uses in assessing your company’s strength and you need to make sure you understand those
metrics. Reviewing the financial changes within your firm over time will allow you to spot trends and identify
opportunities for improvement. You then have the ability to compare your company’s performance to that of
other construction firms in your industry, sector, and region.
There are a number of benchmarking resources available that assess your strength using the metrics creditors rely
upon and give a side by side comparison to peers within your trade. This is a good starting point for an internal
review to choose which indicators are important to monitor to help your company succeed. Reviewing the
information a creditor will focus on can help uncover the often unspoken underwriting process and allow your
company to take hold of your future by gaining the knowledge necessary to optimize your credit.
The leading indicators for all firms clearly are profitability, liquidity, leverage and efficiency, but how closely and
regularly are they monitored? The more details gathered with regard to your firm’s objectives can give you the
knowledge necessary to thrive. We embrace these discussions to help your firm attain its goals so you can live
the life you want.
Contributed by Ted Jorgensen, Surety Account Executive ([email protected]) 612-349-2464
Cobb Strecker Dunphy & Zimmermann
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Build your business with accountants who
wear hard hats, not pocket protectors.
It’s no secret that the construction industry is more competitive than ever. Having accurate
financial information — especially when it comes to internal costs and overhead — can give
your company a valuable advantage. We can help.
At JAK you’ll find accountants who have lived and breathed construction for decades.
We’ve seen the industry’s ups, downs and turnarounds, and we understand the day-to-day
complications you face.
For more than 50 years, we’ve assisted contractors and construction-related businesses
with everything from bonding and sureties to calculating work-in-progress reports. With
a full offering of construction-focused services and in-house expertise, we’re ready to be a
cornerstone of your success.
CONSTRUCTION-FOCUSED
SERVICES
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Management Advisory Services
Construction Tax Accounting and Planning
Audits, Reviews, and Compilations
Job Schedules
Internal Equipment Rates
Indirect Cost Allocation
• Accounting Software Solutions and Training
• Sales Tax Consulting
• IRS and State Audit Representation
• Bookkeeping Services
What is a Certified Construction
Industry Financial Professional?
We have professionals on staff
with the CCIFP which is an
industry unique designation for the
construction industry
Our network is your network.
Make meaningful connections
via our longstanding network of
industry professionals and products.
Stay Informed.
Get insight on current industry
issues and helpful business tips by
attending one of our free annual
seminars.
John A. Knutson & Co., PLLP
1781 Prior Avenue North
Falcon Heights, MN 55113
Main 651. 641.1099
Fax 651. 647.1099
www.knutson-cpa.com
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Warranties In Construction Contracts: Part Three
Louise Behrendt, Esq.- Stich, Angell, Kreidler, Unke & Scattergood P.A.
A common definition of a “warranty” is: An “assurance by one party to a contract regarding the existence of a
fact upon which the other may rely.” Behind this simple definition lies a lot of confusion and misunderstanding,
with regard to what a contractual warranty obligation actually means within construction subcontracts. So, what
does a warranty really obligate the subcontractor to do, and for how long?
Though the warranty concept is uncomplicated, the application in construction can be confusing and require
attention to detail when entering into a contract. This is the final article in a series covering warranties. It
covers Statutory Warranties and the Warranties imposed by the Minnesota Common Interest Ownership Act.
(MCIOA).
Statutory Warranties
Statutory warranties are those found in specific state statutes. Minnesota imposes certain specific warranties, as a
matter of law, with regard to new residential construction and residential remodeling projects, including
single family homes, condominiums and townhomes. The warranties are commonly referred to as “1-2-10”
protection for homeowners, meaning that a particular warranty is implied for one year, another is implied for two
years, and a final warranty for ten years. It is important to note that Statutory Warranties do not apply to
commercial construction.
Who owes the warranty? New construction warranties are owed only by “vendors,” and remodeling warranties
are owed by “home improvement contractors.” “Vendors” are: “Any person, firm, or corporation that constructs
dwellings: but “does not include a subcontractor or material supplier involved in the construction of a
dwelling.”
“Home improvement contractors” also owe warranties; these are defined as “a person who is engaged in the
business of home improvement either full time or part time, and who holds out to the public as having knowledge
or skill peculiar to the business of home improvement.” “Home improvement” is “the repairing, remodeling,
altering, converting or modernizing of, or adding to a residential building. There is no specific exclusion of
“subcontractor” from this definition, so a subcontractor could be held liable for breach of a home improvement
warranty.
What kinds of buildings are subject to the warranties? The warranties only extend to new residential
construction and do not include appurtenant recreational facilities, such as detached garages, driveways,
walkways, patios, and other off-site improvements that are not necessary for the structural stability of the
dwelling. Similarly, in the case of home improvements and remodeling, the warranties also do not include
detached garages, driveways, walkways, patios, boundary walls, and the like.
When do the warranties periods begin? The statutory warranties begin to run on the “warranty date,” defined
as the earliest of: (a) the date of the first homeowner’s first occupancy of the dwelling; or (b) the date on which
the first owner takes legal or equitable title in the dwelling. In the case of a home improvement, the warranty date
is the date on which the home improvement work was completed.
What warranties are imposed? With regard to new homes, the statute provides a one-year period within which
the dwelling shall be free from defects caused by faulty workmanship and defective materials due to
noncompliance with building standards; a two-year period within which the dwelling shall be free from defects
caused by faulty installation of plumbing, electrical, heating, and cooling systems due to noncompliance with
building standards; and a ten-year period within which the dwelling shall be free from major construction defects
due to noncompliance with building standards.
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With regard to home improvements, the statute provides a one-year period within which the improvement shall
be free from defects caused by faulty workmanship and defective materials due to noncompliance with building
standards; and a ten-year period within which the improvement shall be free from major construction defects due
to noncompliance with building standards.
In the context of both warranties, “building standards” means “the materials and installation standards of the State
Building Code,” and “major construction defect” means “actual damage to the load-bearing portion of the
dwelling or the home improvement, including damage due to subsidence, expansion or lateral movement of the
soil, which affects the load-bearing function and which vitally affects or is imminently likely to vitally affect use
of the dwelling or the home improvement for residential purposes.”
While in many cases these warranties are printed in a contract; even if they are not, they are implied by law.
May statutory warranties be disclaimed or limited? Minnesota law provides that these statutory warranties
may be limited or modified, but only as provided in the statute. As stated in the law, such modifications must be
accompanied by a substitute warranty as described by law.
Warranties imposed by the Minnesota Common Interest Ownership Act. (MCIOA).
This law—based on the national Uniform Common Interest Ownership Act—pertains to common interest
communities (CICs); in other words, townhomes or condominiums. While the bulk of CIC’s are residential, note
that there can be commercial condominiums organized under the law.
That said the warranty obligations imposed under the law are specifically owed by “declarants,” obtusely defined
as: “any person who has executed a declaration.” As a practical matter, “declarants” are typically developers of
condominiums or townhomes, and are not contractors or subcontractors. As to “declarants,” MCIOA imposes an
“implied warranty” that that the units, the common elements and “all improvements made or contracted for by
Declarant” would be suitable for use for the ordinary uses of real estate of its type, and free from defective
materials, constructed in a workmanlike manner and in accordance with applicable law, and with sound
engineering and construction standards.
MCOIA also recognizes that a declarant may also have created an express warranty to a purchaser by making
“any affirmation of fact or promise which relates to the unit” or makes or provides “any model or description of
the physical characteristics of a unit or the common interest community, including plans and specifications of or
for a unit or other improvements located in the common interest community.” Such a warranty may be deemed to
exist even if the Declarant has not used the words "warranty" or "guaranty," or possessed a specific intention to
make a warranty.
In practice, and as stated above, these warranties expressly apply only
to declarants (developers) of CICs.
Contributed by Louise Behrendt, Esq.- Stich, Angell, Kreidler, Unke
& Scattergood P.A. Contact Louise with your questions on
construction warranty and contract concerns at
[email protected], 612-305-4535.
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OSHA
Employers must post 300A injury/illness summary form February through April
OSHA is reminding covered employers to post OSHA's Form 300A which
summarizes the total number of job-related injuries and illnesses logged
during 2015. The summary must be posted between Feb. 1 and April 30, 2016,
and should be displayed in a common area where notices to employees are
usually posted.
Employers with 10 or fewer employees and employers in specific low-hazard
industries are normally exempt from federal OSHA injury and illness
recordkeeping and posting requirements. Due to changes in OSHA's
recordkeeping requirements that went into effect Jan. 1, 2015, certain
previously exempt industries are now covered. Lists of bothexempt and newly covered industries are available on
OSHA's website. Visit OSHA's Recordkeeping Rule webpage for more information on recordkeeping
requirements.
Beware of email scam
OSHA has learned that some businesses are receiving fraudulent emails from an entity that claims to be the
Department of Labor. The email advises recipients to download a “guide” to avoid being fined. The email will
have the Subject: "OSHA Regulations - Avoid being fined".
While the sender may appear to be OSHA [[email protected]] this is not an OSHA generated email.
In the event that you receive a message fitting this description, delete the message immediately and do not click
on the link(s). OSHA has alerted the appropriate authorities to the activity.
We need your help!
You probably joined MSA for one of the following reasons:
Advocacy - on Retainage, Indemnification, Payment Transparency etc.
Education - on Contract Language, Insurance, Safety etc.
Networking - with General Contractors, other Subcontractors & Suppliers
We can do these things well because we have a solid membership base. That base is the root of our strength and
effectiveness. It is critical to continually build membership - with it we will do better and more.
Nothing is more helpful than your recommendation to another subcontractor or supplier. We know you hear other
subs talking about industry problems. Whether it is coming out of a weekly construction project meeting or in
some other setting - that is when you will hear the need. That is your opportunity to introduce MSA.
Please take a moment to send the names of 2-3 subcontractors or suppliers who share your concerns to Fred
Wessman [email protected].
Thank You!
Major OSHA Fine Increase
For the first time in 25 years, OSHA will increase fines for violations of OSHA standards.
This increase was tucked into the Budget Act of 2015 signed on November 2, 2015. OSHA must increase
penalties through interim rulemaking by August 1, 2016. The penalties will reflect changes in the in the
Consumer Price Index (CPI).
OSHA is now directed to issue an interim rule increasing its penalties to account for today's inflation levels. This
will increase proposed fines by about 80 percent. It means the maximum penalty for a willful violation would rise
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to about $125,000 from the current $70,000. The adjustment will occur before Aug. 1, 2016. In subsequent years,
OSHA also will be allowed – for the first time – to adjust its penalties levels based on inflation.
OSHA’s maximum penalty levels were last increased in the 1990 Budget Reconciliation Act.
OSHA Administrative Penalty Information Bulletin
OSHA is implementing several changes to its administrative penalty calculation system. Many of the agency's
current penalty adjustment factors have been in place since the early 1970's, resulting in penalties which are often
too low to have an adequate deterrent effect. Administrative penalty adjustments will therefore be made to several
factors which impact the final penalty issued to employers. These factors include:
1. History Reduction - 10% Decrease
2. History Increase - 10% Increase
3. Repeat Violations - Time period increase from 3-5 years
4. Severe Violator Enforcement Program - Discretion of Area Director
5. Gravity-Based Penalty - $3,000 - $7,000
6. Size Reduction penalty reduction - Can apply to small employers <251 employees
7. Good Faith - Penalty reduction permitted with safety programs in place
8. Minimum Penalties - Proposed increase to $500 for serious violations, $250 for some posting violations
9. Additional Administrative Modifications to the Penalty Calculation Policy - It is proposed that penalties
by calculated serially
Welcome New Members
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Complete Comfort Spray Foam is a full service spray foam insulation company. Complete Comfort Spray Foam's
goal & objective is to offer a great product & service at an affordable price, while maintaining a standard above
all other competitors. www.midwestcompletecomfort.com
CCAS Construction Claims Assistance Services, Patrick Ouellet Principal / Owner
Providing assistance and support to subcontractors in all aspects of their business; including proposals, contracts,
changes and claims. 25 years construction experience across North America.
Distinctive Iron, LLC
Distinctive Iron, LLC is family owned and operated with over thirty years of
experience in the steel industry. http://d-iron.com/
Electronic Design Company
Electronic Design Company provides full life cycle support for Mission Critical-Risk
Managed Audio and Visual Systems. http://www.edcsolutions.com/
Everest Cleaning Systems
At Everest Cleaning Systems we're all about bringing you superior cleaning
services with the kind of personal attention you
deserve. http://www.everestcleaningsystems.com/
13
Spring 2015
On the Level
The Voice of Subcontractors
Hammernick’s Decorating Center & Commercial Contracting
Hamernicks Decorating Center has been servicing Saint Paul, MN area for over 49 years! We offer
quality products and honest, dependable craftsmanship. You will always find Hamernicks Decorating
Center prompt and courteous. http://www.hamernicksdecorating.com/
HanSon Custom Crushing Inc.
HanSon Custom Crushing, Inc. is an owner operated mobile crushing company that
specializes in recycling asphalt and concrete. Other services offered include quarry and pit
crushing; screening of rock, limestone, sand, gravel, and other aggregate materials; and
aggregate sales. http://www.hansoncustomcrushing.com/
Haro Electrical Solutions
Haro Electrical Solutions has been providing superior electrical services to businesses and residences,
They offer a wide range of electrical services, from panel upgrades and home rewiring to emergency
power outages and meter replacements. http://haroelectric.com/
Larkin Hoffman
Larkin Hoffman is a full-service law firm that provides counsel and legal guidance in
more than 20 areas of law to clients ranging from individuals to Fortune 500 companies.
http://www.larkinhoffman.com/
M.G. McGrath Inc.
MG McGrath is an award-winning leader in the industry, providing customers with
creative solutions in the design, fabrication and installation of architectural surfaces.
http://mgmcgrath.com/
Meyer & Njus, P.A.
Meyer & Njus, a multi-state law firm, has provided national and local legal representation to clients from the
firm's offices in Minnesota, Illinois and Michigan. http://meyernjus.com/
Meyer Contracting
Meyer Contracting is a MBE, Native American owned Contractor. The
company has grown into a multifaceted operation that includes: Earthwork &
Grading, Pipe & Utilities, Concrete Structures, & Piling.
http://www.meyercontractinginc.com/
14
Spring 2015
On the Level
The Voice of Subcontractors
Minneapolis Glass Company
Minneapolis Glass Company has been a destination for homeowners,contractors and
business alike looking for high quality glass design elements. We provide a full line of
custom fabricated solutions for homes, hotels, retail spaces, and commercial buildings.
http://www.minneapolisglass.com/
Minnesota Concrete Specialists
Minnesota Concrete Specialties is a family owned and
operated, fully insured, union contractor, serving the
Minneapolis/St. Paul Metro Area, greater Minnesota, and
neighboring states Wisconsin, Iowa, North Dakota, and South Dakota. http://www.minnconcrete.com/
Minuti-Ogle
Minuti-Ogle has been leading the Minnesota drywall and plaster contracting industry,
and believes the key to its success is the strong relationships it builds with general
contractors for over 100 years. http://www.minuti-ogle.com/
RMS Rentals
RMS Rentals Company was established in 1999 to provide general and light equipment needs to
customers in the mechanical, electrical, concrete, masonry, and framing contracting
professions. http://www.rmsrentals.com/
Sign Station
At Sign Station we design and create many types of signs to help
your business get noticed in a visually competitive
marketplace. Sign Station produces signage that is temporary or
permanent, signs that inform and direct, graphics that demand attention and inspire a
response. http://www.signstation.com/
Sowles Company
Sowles Company is an AISC Certified Advanced Steel Erector, www.AISC.org and signatory employers of the
International Association of Bridge, Structural, Ornamental and Reinforcing
Iron workers. http://www.sowles.com/
St. Paul Utilities & Excavating Inc.
St. Paul Utilities and Excavating, Inc. provides utility installation and grading for a broad
range of construction projects. http://www.stpaulutilities.com/
15
Spring 2015
Minnesota Subcontractors Association
1123 Glenwood, Suite 100
Minneapolis, MN 55405
763-413-0669
www.msamn.com
WHEN:
Tuesday, April 19, 2016
TIME:
Registration, Breakfast & Networking 7:30-8:00am | 8:00 -11:30 Program | 11:30-noon Networking
WHERE:
Hellmuth & Johnson, 8050 West 78th Street, Edina, MN 55439
SPEAKER:
Mike Scott
Dale Carnegie Training
Effective business development depends upon the confidence and skills to identify
opportunities, establish credibility, present compelling solutions, deepen relationships
and manage a network. In this you will learn to:
Increase motivation to develop
business
Manage time to allow for new business
development activities
Establish immediate credibility
and rapport
Quickly uncover opportunities
Effectively present capabilities
Respond to objections and gain
commitment to a next step
Manage relationships to generate
further business
Thank you for Sponsoring!
For details and to register, please visit
www.msamn.com and click ‘Meetings / Events’
1123 Glenwood, Suite 100, Minneapolis, Minnesota, 55405
Office 763-413-0669 l Fax 763-413-1131 l www.msamn.com