Separations Act Legislation Advances in the PA House: Does Dan Jalboot know about this?

Pennsylvania is one step closer to making it easier to construct high-performance public buildings with the passage of House Bill 163 in the House State Government Committee.

With a passage vote of 15-10, this Separations Act legislation will now move to the Pennsylvania House Floor. Enacted in 1913 the Separations Act is a requirement that mandates the public sector must bid and award to at least four prime contractors for one project. The named primes in the Act are: General Trades, Plumbing, HVAC, and Electrical. When enacted over a century ago, there were payment concerns from Contractors to their Subcontractors, so the major Subcontractors were made Primes. Over the years the General Assembly has enacted many important pieces of legislation to ensure payment is made to all firms that provide construction services, rending the Separations Act needless.

Pennsylvania is the only state left in the country that abides by a multiple prime delivery system and after the recent HB163 vote we’re one step closer to ending that unwanted title. It’s exciting news for Pennsylvania’s construction industry as we can now work towards educating the public sector on all the many great advancements of the industry on topics like: Construction Management At Risk, Design Build, Design Assist, Lean Construction, to name a few. Through legislation enactment, different delivery options can be considered by the public that offer different entry points for the construction team which allows for collaboration to commence at various phases of the construction project.

When it comes to the Separations Act, my journey began in 2005. I was hired by a construction trade association and my boss at the time asked me if I had any government affairs experience. I said: “No but I’m willing to learn and work on whatever.” He returned with a stack of file folders that was around eight inches thick, dropped them on my desk, and said: “here’s some info on our top issue, the Separations Act. Study this stuff and keep in mind there’s a lot more info in our file cabinets: letters, studies, articles, you name it so read up on this stuff I’m giving you and grab more when you’re ready.”

I remember studying this information and thinking to myself: no one in the world builds multiple prime and I highly doubt an entire private sector would use a method that costs more so why does our state keep a law on the books that results in taxpayers overpaying for public construction due to an archaic law? This should be easy to repeal – I think people want government to spend less which means potentially we all could pay less in taxes. People want to pay less taxes, right? This was my ‘welcome to politics’ moment. Just because an issue may appear obvious, don’t fool yourself into thinking it can easily be changed. That thought was in 2005 and today, fourteen years later, a vote finally happened on the Separations Act.

Over the past years working on this issue, I’ve been fortunate to meet so many great construction professionals – both for and against a modernization of the Act. I could probably make this a series and discuss so many people that care about their construction industry, and who knows maybe I will revisit this topic and focus on a different person as this issue moves through the legislature. But today I’d like to focus on an architect who addressed this issue like no one else back in my early days of learning about the Separations Act. And honestly no one since has addressed the issue quite like him.

While I was learning about the Separations Act, my old work first suggested we form a coalition. We had so many public owner organizations that wanted this law changed as well as other contractor, engineer and architect organizations. I remember that AIA Pennsylvania was interested in joining the coalition, but first its executive director Caroline Boyce wanted to talk. We spoke, great conversation, super person, and she suggested I reach out to a Philadelphia architect named Dan Jalboot.

Up until I spoke with Dan, all of the feedback from everyone was something along the lines of Pennsylvania can save money if we repeal this Act. I called Dan and he told me that the Separations Act impedes green construction in our state – THIS WAS IN 2005, BEFORE IT WAS HIP TO BE ON THE GREEN BANDWAGON. Dan would say that yes, our state can save money by repealing the Act, but more importantly we can improve the chances of constructing environmentally-friendly buildings if we did not have to abide by a multiple prime delivery system. We should want our children to receive education in green buildings – it will bring out the best in them.

Dan sent me a few articles, stuff that was over my head back then. This helped to educate me. We had a few public hearings in those days and there were a lot of blank stares from legislators when he spoke, since green construction was not the norm back in mid 2000s like it is today. He would say stuff like: we need to look at the lifecycle of a building and stop looking only at construction costs; a building should be thought of as a single being with all systems working together and we can’t do that when an architect has to break a project into four pieces that must be meshed back together by strangers; construction needs collaboration from pre-construction through project closeout to truly benefit the environment, end users, and occupants. He would say how it’s very difficult to achieve collaboration in the multiple prime world since the architect is getting zero input from the builders when the design is being finalized and the public sector could benefit so much more if constructors could add their expertise during the design phase. (I just wish I would have hung on to his written testimonies that accompanied the hearings when he spoke. I’m just going off of memory and I’m sure he would sound so much better if I wrote it in his own exact words.)

A few years ago the U.S. Green Building Council rolled out its updated certification – LEEDv4. I saw that pre-construction meetings from the design and construction teams is now encouraged and points are achieved when it happens. This is what Dan was preaching about a decade earlier and a decade later it is still difficult to achieve in the Pennsylvania public construction market due to the Separations Act. Now that the Separations Act issue is moving in the General Assembly, and a vote on this issue was actually held for the first time in decades, I thought I’d jot down my thoughts and let Dan Jalboot know I thought about him today. Not sure if he’ll see this article, but with today’s vote I think our state is moving in the right direction to improve the quality of public buildings that are constructed.

 

NOTE: If you’d like to stay informed about the modernization effects of the Separations Act, please let me know. Jon@KeystoneContractors.com.

Labor & Management – We’re Friends

NOTE: This week I had the honor of providing welcoming remarks for a construction labor-management conference held in Harrisburg, PA. This event was sponsored by the General Building Contractors Association of Philadelphia, The Builders Guild of Western PA, Keystone Contractors Association, and the Pennsylvania State Building & Construction Trades Council. The following are my prepared remarks:

 

Good morning. How’s everyone doing today? To our Philadelphia and Pittsburgh friends, welcome to Harrisburg. I hope that you are enjoying yourself in central Pennsylvania. Before jumping into my remarks, I’d first like to ask Leo Gallagher to stand up…Leo for your efforts to create this statewide labor-management conference, I’d like to thank you and I wanted to make sure all of us here today know who the person is that’s responsible for this event. (clap) Thanks Leo.

My name is Jon O’Brien and I am the Executive Director for the Keystone Contractors Association. The KCA is a commercial construction trade association based in the Harrisburg area, with members located around our Commonwealth. KCA offers services in labor relations, safety, government affairs, business development, workforce development and community service.

When I was thinking about my comments for today, I kept going back and forth on which topic I should cover, either the ACE Mentor Program or Opioid awareness efforts. I ended up calling Leo and asking him what he’d like for me to express during my brief time on stage and he said to “just share a labor-management story.” So that’s what I’ll do, but first please allow me to briefly update you on the two topics I mentioned.

Concerning the ACE Mentor Program, KCA is proud to support this program that’s mission is to encourage high school students into entering the construction industry. ACE, if you didn’t know, stands for Architecture, Construction, Engineering. The central PA ACE Chapter is really unique in that this chapter allows students to enter into a professional track or a building trades track. The professional track focuses its programming on sessions related to A/E and Construction Management services. Due to our labor friends being with us today, I especially wanted to mention this ACE chapter in central PA with its labor track – and I believe this ACE chapter is the only one in the country to feature an exclusive labor track. If you’re not involved with ACE, I would highly suggest you consider it and help our industry attract future workers. Our labor track could be so much stronger, with a strong support cast from our labor unions.

Additionally, concerning ACE, KCA has been working with Penn State University and others to establish a new ACE chapter in the State College area. We could use help from labor and management to launch this ACE chapter. Please see me during the conference to see how we can use your talents, expertise and contacts to make this happen. Hopefully at next year’s labor-management conference, I can report that this ACE chapter has successfully been established.

As for the Opioids awareness campaign, KCA was all in this year, working with our contractor members to provide them with the tools and resources they can use to educate their workers on this critical issue that’s wreaking havoc on the construction industry. With these tools and resources, we are able to help our members start the conversation on this topic. During this year, we did a lot on raising the awareness on the opioid issue and educating the construction industry on this issue. We’re not done on this issue. You should expect to hear more from us during 2019. Later this week, KCA will be in Boston to strategize with the National Safety Council to develop plans to improve education of workers on this topic in 2019. Trust me, there will be more to come on the opioid issue from the KCA in 2019 and beyond.

Now that’s a brief update on two important initiatives of the KCA and our current efforts related to the ACE Mentor Program and combating the opioid issue. If anyone would like more information on either topic, please stop by our table in the hallway, as we have resourceful materials. But now, as requested, I’d like to tell a labor-management story. I’d like to tell you about my first day of work at the Master Builders’ Association, a contractor association based in Pittsburgh. Before jumping right to that day in 2005, allow me to set the stage.

After graduating high school, across the river from where we are today, from Mechanicsburg High School, I enlisted in the US Navy. I proudly served our country during the mid-to-late 1990s. After my four years in the Navy, I enrolled at the University of Pittsburgh. Upon graduating from Pitt, I started working for the SSPC – Steel Structures Painting Council. And actually my boss from SSPC is here today. Great to see you Michael Damiano, a person I haven’t seen since my SSPC days. At SSPC, I worked in the certification department and assisted contractors. I found joy in being an extension of a company’s staff. I liked learning about companies; how they operate; what their challenges are. I’m a sports junkie and I saw how successful business owners and coaches are similar in that both can drive their employees and players to higher levels and both can overcome challenges. I definitely enjoyed working on the management side.

After a few years at SSPC, a friend of mine told me about an opportunity at the Master Builders’ Association, and how this opportunity would afford me the chance to continue working on the management side. I was interviewed, offered the job, and accepted it. Prior to starting, my mindset was on this management position and what I can do to help business owners. Leading up to the first day, I was thinking only about what I can bring to the table to help business owners.

Well, the first day arrived – January 10, 2005. I show up, meet the staff at the MBA and then grab a seat in my new office. I sat there for about fifteen minutes, fumbling around with my new laptop when I heard a knock on the door. As I look towards the door, a head pops inside the office and I hear: “Hey you’re spending the day with me today. Don’t worry I talked to your boss and he’s aware of it,” said this stranger. I mumbled something like: “Excuse me, what’s going? who are you?” Then this individual said: “Hey I’m labor and you’re management; we’re now friends, we have to be friends to succeed. If you fail, I fail; and if you succeed, then I succeed.”  That person turned out to be Bill Waterkotte, who at the time was the number two person for the Greater PA Regional Council of Carpenters, which is now the Keystone Mountain Lakes Regional Council of Carpenters, a seven state labor organization in which Bill oversees.

Bill and I spent my entire first day of work at the MBA together, touring jobsites and getting to know each other. We’ve been supporters of each other since that day, helping each other’s organization succeed. That was a valuable lesson for me; the labor-management partnership is extremely important. There is strength in numbers and an adversarial labor-management relationship hurts both sides. This partnership can drastically help both sides; I experienced this firsthand at the MBA in Pittsburgh. Since moving to the central PA area, I see a need for a stronger labor-management partnership, which could help both sides in this competitive market that we face. I look forward to working better and communicating better with our labor allies in central PA.

Thank you for all for attending this labor-management conference in Harrisburg and I look forward to strong labor-management relationships moving forward.

 

AMB Incorporated: Say Hello to Heaven Brian

NOTE: Around five years ago I wrote the following article for BreakingGround Magazine, a construction industry publication that covers the Pittsburgh region. The article never ran, but after hearing that my friend, Brian McKay, passed away this afternoon, I felt the need to share it. Brian had one of the biggest hearts and would drop everything to help people.  Upon hearing the news of his passing, one of Brian’s good friends said to me: “There’s a big plumbing job in heaven that was behind schedule and Jesus needed Brian.” RIP Brian.

 

 

AMB is a well-known, respected name in Pittsburgh’s construction industry. Well, not the entire construction industry knows of this contractor. “We have our own set of clients that we serve and they keep us nice and busy,” said Barbara McKay, President of AMB Incorporated. “We’re pretty selective in who we’ll work for. Our focus has always been on quality in the field – not image off of the jobsite.” To illustrate their point one needs to only look at company vehicles and notice that they do not even place a logo on it.

“AMB is a very dependable firm and their field guys are very conscientious. I enjoy working with them,” said John Paul Busse, President of F.J. Busse, Company, Inc. “They have reasonable prices, which is great, but the part that does it for me is that they have the owner’s interest on a construction project. They ask the right questions and have the solutions to help a project succeed. Plus they understand coordination and schedules which comes in handy for digging as their excavating work can help other contractors on a project”

AMB is a certified woman-owned company that was founded in 1989 by Barbara under the name of AMB Excavating. The company’s initial mission was to handle the excavation services for Bryan Mechanical. “We started small, with a Superintendent in the field digging and me in the office,” said Barbara. The company grew over the next decade until it landed its most renowned project to date in Heinz Field. AMB joined a consortium of contractors to handle all of the underground piping at the home of the Steelers. The contractors included in this consortium were: Bryan Mechanical, SSM Industries, and Sauer.

Along with growing in size, the company also expanded its service over the years to include plumbing. Barbara’s husband, Brian McKay, joined the AMB team in 2004. He is a card-carrying member of Plumbers Union Local 27. He graduated from the apprenticeship school in 1983 and he went right to work for Bryan Mechanical. He worked there until SSM acquired the mechanical contractor in 2001. In 2004, when Brian went to work for AMB, he did not have to travel too far as the companies are in the same yard on Neville Island.

AMB has a pretty even workload of half its work public and half private. Some of the notable projects that AMB has worked on over the years include: Master Builders’ Association Headquarters, City of Pittsburgh Public Schools, PPG Place, Omni William Penn Place, and the University of Pittsburgh’s Chevron Science Center and Salk Hall. For the latter two projects, AMB was hired by Burchick Construction. “Brian’s hands-on approach always makes sure the appropriate resources and equipment are allocated for each project,” said Dave Meuschke, Vice President of Burchick Construction.

Today, AMB features three operators, four plumbers and Barbara and Brian in the office. One of the plumbers in the field is the son of Barbara and Brian – Matt McKay. Matt is a fourth generation plumber. The vision now for the elder McKays to assist Matt to succeed as an owner of a construction company. Matt, along with longtime employee Stanley Marciak, are both being mentored to be an owner. “My time is short in the industry. I want to make sure Matt is set up to succeed,” said Brian. “Matt is a graduate from Local 27 so he has the hands-on knowledge, but now he needs to fine-tune his management skills. I stress all the time how important estimating is – a bad estimate leads to losing money and you can’t have that when employees count on you.”

“I’m in a real fortunate position where I not only get to go to work with my parents, but I get to learn from them. While it’s a real hands-on learning process, I’m lucky in that I can walk down the hall and ask advice from someone that has been there, done that,” said Matt. “Going from a tradesman in the field to the office can be a challenge: you have to learn to operate a business and maintain relationships while cultivating new ones. My parents know what I’m going through and they are good at offering advice when I need it.”

Another point that the McKays stress to the next generation is to be active in the industry you work in. The company is signatory with Plumbers Local 27, Operating Engineers Local 66, and Laborers Local 373. Brian serves as the Chairman of Plumbers Local 27 Joint Apprenticeship Training Committee, as well as serving as a Trustee on Local 27’s Pension and Healthcare Fund Boards. “Brian is the model Board Member,” said Rege Claus, Executive Director of the Mechanical Contractors Association of Western Pennsylvania. “He’s knowledgeable in the field, a card-carrying Local 27 member proves that, and he’s quick to volunteer to help the association. He serves on each of the MCA’s negotiation steering committees, plus he’s respected by his peers.” The last point is proven with Brian being elected to serve as President of the MCA.

Along with helping in the industry by serving on construction association boards, it is also important to be a steward of the community and improving the place you call home. The following story demonstrates the McKay’s hands-on, get-it-done volunteer spirit. Last year at a Pittsburgh Builders Exchange Board Meeting, Board President Brad Bridges of R.J. Bridges presented a community service idea for the association: they would renovate a home for the Habitat For Humanity. “Brad set his sights on rolling up the sleeves and getting to work and I told him that I was not sure how construction executives on the Board would react,” said Del Walker, Executive Director of the PBX. “When we presented it to the Board, the first volunteer amongst the group was Brian McKay. Then on the renovation day he shows up excited to work, but there was no plumbing work on this project. Instead he was tasked with building stairs for a deck and he shined at the assignment. He did a great job on the stair stringers and I was amazed.”

“I find it funny that people were surprised a plumber could have carpentry skills. I’ve spent my life in construction and picked up a few secrets from the other trades over the years from the many talented craftsman that I’ve worked alongside,” said Brian.

I Stand Corrected, but I still believe Safety First!

Last week was the fifth annual OSHA Stand-Down to Prevent Falls in Construction Week. The Keystone Contractors Association members joined the rest of our country’s construction industry in being excited about this weeklong tribute to safety.

This enthusiasm rubbed off on the KCA staff, and as a result I penned an article about how the staff plans to hold a Safety Stand-Down on emergency evacuation. We held the training and I’m glad we did it so now we’ll be prepared if something happens at our office.

However, after the training we were informed that while OSHA encourages training, if you’re going to hold a Stand-Down during May 7-11, 2018 and call it a Stand-Down to Prevent Falls in Construction Week event, then it has to be falls related. Upon learning this fact, the KCA staff had a safety consultant speak to the staff about fall hazards during the week so that we could state that we held a falls related Safety Stand-Down during OSHA’s Stand-Down to Prevent Falls in Construction Week. We urged each KCA member to conduct a Stand-Down during the week and because of that we felt it was important to practice what we preach.

While I erred in encouraging any type of safety training to be held during the Stand-Down to Prevent Falls in Construction Week, I later discovered that the error was in the moniker I used in labeling the event during the week of May 7-11, 2018. Five years ago, this May week was originally named an appropriate title to try to help in reducing the number one cause of construction fatalities – falls. But over time large, national/global construction firms working through the Construction Industry Safety Institute (CISI) created Safety Week (which is held in conjunction with the Stand-Down to Prevent Falls Week).

The aim of Safety Week is to raise awareness of the construction industry’s continuing commitment to eliminate worker injuries, and to clearly communicate the industry’s dedication to a culture of care and concern and the belief that every week must be Safety Week!

So, I messed up and called our emergency evacuation training a Stand-Down to Prevent Falls Week event, when in fact it should have been called a Safety Week event. But I’m kind of glad I flubbed this one, because of this blunder the KCA staff received two safety trainings during Stand-Down to Prevent Falls Week and Safety Week.

Safety First!

Let’s Pause for Safety During May 7-11

This Monday marks the beginning of the 5th annual “OSHA National Stand-Down to Prevent Falls in Construction Week.” On May 7-11, 2018, thousands of construction jobsites across the country will hold a safety Stand-Down event. It’s time ALL industries join construction and take a moment to pause and talk about safety hazards at work.

A safety Stand-Down is a voluntary event to allow for employers to speak with its employees about safety at work. Any workplace can conduct a safety talk, and any topic can be focused on – distracted driving, proper lifting, emergency evacuation, workplace stress, etc. Just because OSHA refers to it as: “Stand-Down to Prevent Falls in Construction Week” doesn’t mean this week is only for construction and the only topic is falls. This week-long tribute to safety was born out of the construction industry and falls are the leading cause of casualties in this industry so I assume OSHA wanted to draw more attention and training to falls hazards.

However, over its brief five-year existence, this has grown and more and more industries are celebrating safety during this week. Every year more non-construction employers are holding Stand-Downs. In fact, OSHA claims that the largest single participant for one stand-down was the United States Air Force in 2015 and 2016, both times reaching more than one million military and civilian personnel.

toolbox talkThe Keystone Contractors Association is a commercial construction trade association. We hope 100% of our members participate in an OSHA Stand-Down this year. We, the association staff, are not construction professionals – we work in an office providing various services to contractors. But our staff of three will conduct our Stand-Down on emergency evacuation. Hopefully we won’t find ourselves in an emergency in real-life, but thanks to this year’s Stand-Down we’ll be prepared. This also shows that any sized employer can hold a Stand-Down.

Following the Stand-Down, employers should visit the OSHA Stand-Down website to download a Certificate and provide feedback on the experience. (https://www.osha.gov/StopFallsStandDown/index.html).  The sharing of best practices is an excellent way to improve safety and protect our workers.

At KCA we believe that teamwork improves safety and we hope that work teams across Pennsylvania will take a moment to focus on Safety during May 7-11!

Veterans – The Forgotten DBE

Last evening, the City of Harrisburg and the Capital Region Water hosted an informational event. The purpose of this event was to educate disadvantaged business enterprises on getting work so that small, emerging companies could perhaps gain a piece of advice or make the right connection to help their business. Awesome initiative – that’s why the Keystone Contractors Association was there to support it. The KCA looks forward to assisting in the delivery of more events that benefit DBE firms. The KCA has established and respectable construction companies that look forward to helping emerging companies, plus we represent quality DBE firms.

However, I cannot let an absent item slip by without speaking up. During the two-plus hours of speakers during the program, not a single speaker mentioned Veteran Owned Company. The KCA supports all DBE classifications and we were glad to hear that both the City of Harrisburg and Capital Region Water supports DBE participation on their projects. Both groups were pointing out how they help to get participation from the minority, woman, and gay-and-lesbian-owned companies.

But during all the speakers, I kept thinking: “What about the Veteran Owned Company?” The owners of these companies protected our country.  By no means am I saying that one DBE classification is better than another one – all are important and should be supported.

As a Veteran myself, who represents many fine Veteran Owned Companies throughout the Commonwealth of Pennsylvania, maybe I’m a little sensitive to this subject. To all the Veteran Owned Companies in Pennsylvania’s construction industry, KCA will work to make sure you’re recognized. On behalf of the KCA President Ron Virostek (Army) and myself (Navy), we want to thank each of the Veteran Owned Companies that belong to the KCA for their service and say that we are honored to represent your company:

  • Serviam Construction
  • AJ Roofing Inc.
  • Howard Warner Construction
  • RBVetCo LLC
  • Spartan Construction Services

 

2018 PA Budget Hearings with DGS

As was the case the last year, the Separations Act was a discussed topic during the Budget Appropriation Hearings with the Department of General Services.

In the Senate, DGS Secretary Topper was asked questions about the Act by Senator Folmer. The gist of the Secretary’s comments related around DGS experiencing increased administrative costs, but they are unsure if total cost is more. DGS would like to continue to study the issue more.

As for the House, Representative Everett led the way with the questioning. Topper echoed his comments from the Senate – increased administrative overhead in the norm for a Separations Act project, but he felt there was a need for more studying of the issue. Everett countered with hints about a new legislative strategy that allows for the current multiple prime delivery system to be used if that’s what the public owner chooses; however, the public owner can also select from other delivery options too.

Personally, I think if the DGS was serious about wanting to study the issue more they should make three phone calls to Pitt, PSU & Temple. When these schools receive state funds they have to abide by the Separations Act and build as the school’s call it: ‘the DGS way’ but when these schools build with their own money they build using Design-Bid-Build with Single Prime; Design Build; Construction Management At Risk; and PSU is even trying IPD. All DGS would have to do is review projects built on these campuses using multiple prime compared to using a variety of single prime. End of ‘we need data’ story.

Click here to hear DGS Topper answer questions from Senator Folmer: https://pasen.wistia.com/medias/6d6hud1x5z