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A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017

A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017 LOUIS J. COLETTI, PRESIDENT
A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017 LOUIS J. COLETTI, PRESIDENT
A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017 LOUIS J. COLETTI, PRESIDENT
A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017 LOUIS J. COLETTI, PRESIDENT
A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017 LOUIS J. COLETTI, PRESIDENT
A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017 LOUIS J. COLETTI, PRESIDENT
A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017 LOUIS J. COLETTI, PRESIDENT
A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS MAY 2017 LOUIS J. COLETTI, PRESIDENT

LOUIS J. COLETTI, PRESIDENT & CEO

ABOUT THE BTEA

Established in 1903, the Building Trades Employers’ Association is New York’s largest Contractor Association. It represents 27 individual construction contractor associations and 1,800 construction managers, general contractors and specialty trade subcontractors. In 2015, BTEA Member Contractors had construction revenues of some $35 billion in commercial, residential, interior renovation, healthcare, education, cultural, transportation, infrastructure and other projects while achieving the City's best safety record in NYC.

THE BTEA’S MISSION

The BTEA is the construction contractors unified advocate for construction safety standards, professional development, government advocacy, public relations and fostering communication between public officials, public and private owners, labor and the public.

Realizing that a construction industry is essential to the vibrant future of New York City, its activities are dedicated to a building environment meeting the highest of environmental standards, integrity, cost efficiency, productivity and value that contributes to improving the quality of life in New York City.

A BLUEPRINT FOR ACHIEVING MINORITY & WOMEN-OWNED BUSINESS 30% GOALS

PUBLISHER

Louis J. Coletti

President Building Trades Employers’ Association

CONTRIBUTING EDITORS

Richard Armellino

CFO & COO Megrant Corporation

Dr. Thomas Boston

CEO EuQuant Analytics

Cesar Cardenas

ESQ Pitta & Giblin, LLP

Steven M. Charney, Esq.

Chairman Peckar & Abramson, PC General Counsel Building Trades Employers’ Association

Felice Farber

Director General Contractors Association of NY

R.G. McGuire

Kauff, McGuire & Margolis LLP Contractors’ Association of Greater New York, Inc.

Aislinn McGuire

Kauff, McGuire & Margolis LLP Contractors’ Association of Greater New York, Inc.

Kristine Di Napoli

President KND Licensed Electrical Contracting

Anne Rascon

Principal Rascon Associates, LLC

Denise Richardson

Executive Director General Contractors Association of NY

Arthur Rubenstein

President Skyline Steel Corporation Subcontractors Trade Association

Bruce Ruinsky

Executive Director Association of Master Painters & Decorators

William Shuzman

Executive Director Allied Building & Metal Industries

Sylvia Strauss – Figueroa

Law Offices of William Rothberg Roofing & Waterproofing Contractors Association

Charles Williams

Partner Peckar & Abramson, PC General Counsel BTEA Minority & Women-Owned Business Leadership Council

BUILDING TRADES EMPLOYERS’ ASSOCIATION MINORITY & WOMEN BUSINESS LEADERSHIP COUNCIL

THE BTEA MINORITY & WOMEN-OWNED BUSINESS LEADERSHIP COUNCIL

CO-CHAIRPERSONS

Stephanie Burns

Turner Construction Company

Christine Donaldson-Boccia

JD Traditional Industries

Paul Vieria

IDL Communications & Electric

Andis Woodlief

Lendlease U.S. Construction

HONORARY

CO-CHAIRPERSON

Linda Christensen-Sjogren

LendLease U.S. Construction

GENERAL COUNSEL

Charles Williams III

Peckar & Abramson General Counsel

MEMBERS

Gina Addeo

ADCO Electric

Clifford Aikens

Cauldwell Wingate

Richard Armellino

Megrant Corporation

Lisa Canty

Kleinknecht Electric

Paul Crilly

Structure Tone, Inc.

Krissy DeNapoli

KND Electric

Nancy-Jean DeNapoli

KND Electric

Lorraine D’Angelo

LDA Compliance Consulting

John Dillon

Five Star Electric

Tim Dillon

Hunter Roberts Construction Group

Jeff Elmer

Association of Electrical Contractors

Felice Farber

General Contractors Association

Anthony Florez

Sirina Fire

Victor Gany

Center Sheet Metal

James Giorgio

B & G Industries

Geri Gregor

Grassi & Associates

Steven Goldstein

Grassi & Associates

Maureen Henegan

Henegan Construction

Lisa Howlett

Hunter Roberts Construction Group

Bernadette Jeronimo

JCF Electric

Prakash Kapadia

Kanta Electric

Hank Kita

Subcontractors Trade Association

Carol Kleinberg

Kleinberg Electric

Donna Licciardi

Skanska USA

Edwin Lopez

National Electrical Contractors Association, New York Chapter

Aislin McGuire

Contractors Association of Greater New York

R.G. McGuire

Contractors Association of Greater New York

Cheryl McKissack

McKissack & McKissack

Jasmine Mirian

Megrant Corporation

Suzanne Miritello

Skanska USA Civil NE

Craig Noller

Building Contractors Association

Rachel Nunez

Nunez Electric

Flora Ramos

Tishman Construction

Denise Richardson

General Contractors Association

Veronica Rose

Aurora Electric

Michael Russo

Fresh Meadow Mechanical Corporation

“WHEN GOALS CAN’T BE REACHED, DON’T ADJUST THE GOALS, ADJUST THE ACTION STEPS.”

-Confucius (500 B.C.)

INTRODUCTION

When the Building Trades Employers’ Association looks at New York City’s growing skyline and infrastructure- it sees more than just concrete, steel glass and bricks. It sees business opportunities, tax revenues, jobs and an improved quality of life.

The Building Trades Employers’ Association has long supported efforts to grow Minority/Women Owned businesses. A 2007 BTEA report "A Blueprint For The Successful Growth of Minority & Women-Owned Construction Companies", identified many of the obstacles M/WBE companies face including recommendations for change. Ten years later, many of those same obstacles exist, and too few of those recommendations were adopted.

Construction is a high-risk business. According to data from Dun & Bradstreet, since 1988, construction businesses failed at a higher rate than any other business enterprise in any sector of the U.S. economy. US Census Bureau data shows that six (6) of every ten (10) construction companies fail within five years of their establishment.

Public Policies that were developed to increase business opportunities for minority and women–owned businesses have been in place for over 30 years. Despite decades of well-intentioned programs, too few M/WBE businesses have benefited.

In an effort to accelerate the development of Minority and Women Owned Contractors to grow and thrive, the Building Trades Employers’ Association commissioned two (2) reports designed to address the need to increase the capacity of M/WBE contractors to successfully compete for contract awards.

1 A Groundbreaking, and first of its kind in the Nation M/WBE Capacity Study based on NYC contract award data from 2012-2015, conducted by Dr. Thomas Boston, President, EuQuant Economic Research;

2 This Public Policy paper, which includes recommendations to expand the capacity of M/WBE Contractors to compete for contracts and grow their businesses;

The BTEA commissioned these 2 reports in the hope they will serve as a catalyst to bring together NYC and NYS public policy leaders, M/WBE Advocates and contractors and BTEA Contractors to affect the changes, necessary in order to achieve a 30% goal.

EXECUTIVE

SUMMARY

MAJOR CONCLUSIONS

1 M/WBE companies continue to lack access to the financing and bonding needed to increase their capacity to grow;

2 The unavailability and/or high cost of general liability insurance remains a significant obstacle to increasing the capacity and growth of M/WBE contractors;

3 Personal Net Worth Limitations place a ceiling on M/WBE Contractors' ability to increase the capacity and growth of their companies;

4 Currently, there are legal limitations on the ability of prime contractors to provide technical assistance and mentoring;

5 The City and State M/WBE Certification Processes are overly bureaucratic, fragmented and lack the financial resources necessary for public agencies to effectively carry out their legal responsibilities to:

1) certify 51% ownership in M/WBE firms and 2) ensure certified M/WBE companies can provide a "Commercially Useful Function".

CORE PRINCIPALS OF STUDY:

PRINCIPAL 1

TO OFFER EFFECTIVE, CAPACITY BUILDING PROGRAMS TO OVERCOME HISTORICAL OBSTACLES TO BUILDING M/WBE CAPACITY.

PRINCIPAL 1 TO OFFER EFFECTIVE, CAPACITY BUILDING PROGRAMS TO OVERCOME HISTORICAL OBSTACLES TO BUILDING M/WBE CAPACITY.

PRINCIPAL 2 TO CREATE A STREAMLINED AND FUNCTIONAL M/WBE CERTIFICATION PROCESS THAT PROVIDES THE INFORMATION RELEVANT TO THE M/WBE FIRM’S ABILITY TO PERFORM SPECIFIC TYPES AND SIZE OF CONTRACTS

THAT PROVIDES THE INFORMATION RELEVANT TO THE M/WBE FIRM’S ABILITY TO PERFORM SPECIFIC TYPES AND SIZE

RECOMMENDATIONS

1 Increase Financial Assistance and Working Capital for M/WBE’s.

2 Improve Public Agency Payment and Change Order Processes.

3 Adopt Legislation to Require all NYC and NYS Public Agencies and Authorities to Establish Small Business Programs for Contracts Up to $400,000 and to Waive Bonding for Those Projects.

4 Establish a New York State General Liability Insurance fund for small and M/WBE Companies.

5 Eliminate The Threshold of Personal Financial Net Worth and Other Financial Limitations of M/WBE’s.

6 Expand Technical Assistance and Mentorship for M/WBEs And Increase Funding For M/WBE Capacity Building Programs.

7 Streamline and Reform the M/WBE Certification Process And Increase Funding For This Purpose.

8 All

City

and

State

Agencies

M/WBE Contractors.

Should

Be

Authorized

to

Pre-Qualify

9 Reform The M/WBE Regulatory Framework.

10 Expand Private Sector Contractor Participation in the development of M/WBE policies and programs.

11 New York City And New York State Agencies Should Work With The BTEA To Establish Project Labor Agreement (PLA) Educational Programs, and To Develop Technical Support for M/WBE’s Working On PLA Projects.

CORE PRINCIPLES

PRINCIPLE 1

TO OFFER EFFECTIVE, CAPACITY BUILDING PROGRAMS TO OVERCOME HISTORICAL OBSTACLES TO BUILDING M/WBE CAPACITY.

PRINCIPLE 1 TO OFFER EFFECTIVE, CAPACITY BUILDING PROGRAMS TO OVERCOME HISTORICAL OBSTACLES TO BUILDING M/WBE CAPACITY.

WORKING CAPITAL SUPPORT

Any growing business experiences the challenge of working capital and cash flow. Given the lag between performance of work and payment, change order procedures, retained payments and other standard procedures, working capital and cash flow burdens are unusually great in the construction industry. There is likely no single factor that has contributed to the high frequency of construction company failures more than cash flow and the lack of working capital. To increase the capacity of M/ WBE contractors’ ability to grow, this critical issue must be addressed.

Both NYC and NYS should be applauded for establishing financial assistance programs that provides M/WBE companies with low interest loan opportunities to assist them with the cash flow needed to build capacity and grow their firms.

The NYS “ Bridge To Success ” program currently invests $20 million to expand access to short-term bridge loans for M/WBE companies who have been awarded a City or State contract which are used as collateral for the loan.

NYC has created a City Contract Financing Loan Program which offers funds capped at 3% APR to eligible M/WBE’s for loans of up to $500,000.

While commendable, these programs are only a start. For M/WBEs to grow and thrive, the need for capital cannot be emphasized enough and funding availability must be greatly increased to a minimum of $100 million for each fund.

BONDING AND GENERAL LIABILITY INSURANCE

The construction industry relies heavily on the support of the general liability

insurance and surety industries given the elevated risk of injury, property damage

and potential defaults.

New York are reluctant to write policies for new companies. Emerging contractors, including M/WBEs, are among the most vulnerable in this regard, often left without the ability to meet surety and insurance requirements required to secure contracts.

Insurance carriers and insurers, particularly in the state of

Only after sustained performance and success are insurers willing to accept greater exposure. As a result, the inability to secure insurance and bonding limits the contract opportunities that M/WBEs can pursue.

Access to general liability insurance is an especially acute concern in New York State due to the effects of Labor Law 240 (known as the Scaffold Law). That law imposes an absolute liability standard on construction contractors. New York is the only state in the nation that has such a standard and insurance companies continue to withdraw from the New York market as result. Efforts to reform Labor Law 240 have been unsuccessful for over 30 years. Consequently, it is virtually impossible for small and M/WBE contractors 1) to obtain general liability insurance at an affordable cost or 2) to obtain it at all.

Absent a solution that facilitates insurance and bonding for M/WBEs will only continue to place a ceiling on the growth and success of M/WBEs. Access to insurance and bonding must be made available to M/WBE’s in order to successfully deal with this constraint.

NET WORTH LIMITATIONS

Similarly, M/WBE programs place strict limits on the personal net worth of the woman or minority owner. While M/WBE programs are not intended to facilitate further growth of the already affluent, overly strict net worth requirements have the effect of curbing growth too early in the evolution of an emerging enterprise. Among other things, this restriction limits the ability of the owner to obtain performance and payment surety bonds, which are critical to the sustained growth of the M/WBE, because surety companies rely on the net worth of owners as a condition to providing such bonds.

TECHNICAL ASSISTANCE AND MENTORING

Particularly during the formative and growth years of a construction company, external technical assistance and mentorship by those experienced in the industry is invaluable. Nearly every successful contractor speaks of how another contractor,

often a prime contractor, has provided critical support or assistance at a pivotal time in their company’s history. M/WBEs are surely no exception and programs that facilitate such support of M/WBEs must be expanded.

The NYC School Construction Authority (SCA) and, more recently, the Metropolitan Transportation Authority (MTA) and

The NYC School Construction Authority (SCA) and, more recently, the Metropolitan Transportation Authority (MTA) and the Port Authority of NY and NJ, are models of successful technical assistance programs that should be expanded and offered by every city and state agency.

The SCA and MTA maintain (and pay for) construction service companies and industry-related professionals, such as construction managers, construction lawyers and construction accountants, to assist M/WBEs when it is necessary to ensure the successful completion of a project they are building.

When a prime contractor becomes aware that an M/WBE subcontractor is experiencing problems in performing the work, they notify a designated representative of the agency. In turn, the agency selects a professional to provide the appropriate technical assistance directly to the M/WBE firm to assist them

successfully complete the job. This is done under a separate contract directly with

the agency, independent from the contract of the prime contractor (thereby avoiding concerns regarding potential criminal/civil sanctions that are addressed later in this report).

The Port Authority’s Mentor Program establishes three tiers of contract thresholds based on their capacity to do work. M/WBEs then proceed through a series of ten construction courses taught by volunteers from the construction industry and related professions.

The Port Authority Mentor also provides a live project on which M/WBEs work, but not under the direct supervision of the prime contractor that is building the project for the agency. Mentors then review the M/WBE’s progress “in the field” over a period of time that could take up to four years to complete. This program has a high success rate of M/WBE firms in both completing the Mentorship Program and increasing the size of contracts firms can perform as a result of this training.

Beyond agency sponsored contractors' training and mentorship programs, the most timely and effective support for M/WBE contractors could come from the prime contractor that hired the M/WBE for a project they are preforming. Prime contractors are precluded from providing technical assistance to a M/WBE contractor on a project where there is a direct contractual relationship.

Under applicable city and state law an M/WBE must be able to perform a “Commercially Useful Function”. Law enforcement officials have interpreted the “Commercially Useful Function” standard to mean any assistance, even such as a prime contractor's on-site mechanic fixing an M/WBE’s equipment as a violation of that standard.

Consequently, M/WBEs not only face the substantial, yet common, challenges of developing a construction business, but face the deficit of essentially being precluded from receiving any technical assistance from prime contractors. M/WBEs do not benefit from the support and assistance of the prime contractor that is in the best position to understand the needs of the M/WBE and provide timely and effective support and assistance. Alternative technical assistance and mentoring programs, or a means of permitting prime contractor assistance, are essential to address this critical deficit

PRINCIPLE 2 CREATE A STREAMLINED AND FUNCTIONAL M/WBE CERTIFICATION PROCESS THAT PROVIDES THE INFORMATION RELEVANT TO THE M/WBE FIRM’S ABILITY TO PERFORM SPECIFIC TYPES AND SIZE OF CONTRACTS

THAT PROVIDES THE INFORMATION RELEVANT TO THE M/WBE FIRM’S ABILITY TO PERFORM SPECIFIC TYPES AND SIZE

Central to advancing the interests of M/WBEs is the ability to identify certified and qualified M/WBEs, including the specific type and the capacity of work that the M/ WBE can perform. Existing certification databases, however, offer little information that aids in advancing that effort. Far too often existing certification databases provide incomplete, inaccurate or otherwise misleading information.

There is a significant lack of financial resources allocated to the New York City Department of Small Business Services and New York State Empire State Development Corporation to fulfill their responsibility in certifying the capacity of M/ WBE Contractors to compete for contracts with the 95 New York State agencies and authorities and 34 city agencies responsible for achieving their respective 30% M/ WBE aspirational goals.

Therefore, City and State M/WBE Certification agencies struggle to carry out their legally mandated due diligence responsibilities to:

1

2

“certify” that Minority and Women-Owned companies are owned, controlled, and operated by 51% minority/women business owners; and

“verify” that sufficient capacity exists among certified M/WBEs to provide a “Commercially Useful Function”.

The best NYC and NYS agencies can do under existing programs and with the financial resources they now have is to “spot check” or audit M/WBE firms to determine if they meet the legal requirements for being able to provide a “Commercially Useful Function”.

As a result, the Certification process does not serve constituencies:

the

needs

of

any

of

its

1 M/WBE’s face burdensome and voluminous paperwork requirements to certify

with multiple agencies, despite efforts to establish Uniform Applications,

2 Prime Contractors cannot rely upon the accuracy of the information on certification lists to identify new qualified M/WBE’s and

3

M/WBE’s expectation that the certification process will open the door to new contract opportunities that too often fail to materialize.

The burden of certifying an M/WBE company can provide a “Commercially Useful Function” has effectively been shifted to the private sector prime contracting community—a sector that cannot be expected to have the information, training or resources to verify full certification compliance and capacity.

Contractors are forced to conduct their own independent verification, often revealing that the M/WBE cannot perform the specific scope of work despite having been

certified. In turn, agency lists or databases of certified M/WBEs are of limited value

to the contract community. Certification must be linked to the “Commercially Useful

Function” standard to ensure an M/WBE can perform the work if the public sector M/ WBE certification lists are to be an effective resource for prime contractors.

The result has been no shortage of frustration and disappointment for public agencies, M/WBE contractors and prime contractors alike when “aspirational goals” for M/WBE participation on a project fails to be achieved.

Increased funding for the full certification process would provide the following benefits:

1 Increase the accuracy of information about M/WBE contractors;

2 Improve contract opportunities for M/WBEs;

3 Serve as a valuable “source” or database that can be used by prime contractors to identify capable M/WBE contractors;

4 Facilitate the establishment of realistic goals by public agencies;

5 Reduce M/WBE fraud.

Coding Systems Used in Identifying M/WBE Companies Are Inconsistent, Problematic and Misleading. Governmental agencies responsible for certification use coding systems that often result in inaccurate, misleading or incomplete information about M/WBEs.

A related problem is the fact that various City and State Certification processes use

different industry coding systems. The consequence is a system that is unreliable with information as fundamental as the specific trade or type of work and the volume of work that the M/WBE is capable of performing. All agencies should use a common industry coding system that clearly identifies this fundamental information in a manner that will be useful to the prime contractors.

In her recent report Improving the Certification Process, M/WBE Businesses in Construction, Anne Rascon, former Deputy Commissioner of the NYC Department of Small Business Services M/WBE Certification says:

1616

“The coding is too broad to capture important operational nuances, such as whether the applicant has performed single family housing construction or interior improvements for small retailers, in contrast to performing more complex work found on public sector work projects such as the construction of public schools, water filtration plants, roads, bridges or mass transportation infrastructure,” (p.4)

Currently, M/WBE applicants select an industry standard commodity code or set of codes categorized by industry sectors and sub areas. A commodity code assigns a numeric value to a good or service. Such commodity code lists provide only a broad baseline for descriptions, definitions and standards for goods and services in the procurement process that are by no means clear indicators of the type of work that a firm actually has the capability to perform.

The sequence triggered by current use of commodity codes is ineffective and inefficient, as the following example reflects:

1 The City and State use very broad industry classifications categories, rather than more detailed categories;

2 When applying for certification, firms often check multiple industry categories, even if they have never performed work in those categories, presumably under the misconception that in doing so it will increase contract opportunities (for example, an M/WBE applicant may choose from broadly descriptive codes such as “general contractor”; or specialized trades described generally as “carpentry”, “electrical”, “plumbing”, “heating, ventilating and air conditioning”; and/or a company can provide multiple construction services);

3 By selecting either broad or multiple categories, however, no clarity is offered regarding the specific type of work the M/WBE can actually perform - little or no meaningful information about the M/WBE’s specific capabilities are identified;

4 Because of underfunding and ill-conceived certification procedures, government agencies responsible for certification can do little to validate whether firms can provide a “Commercially Useful Function” in all the categories they select;

5 Additionally, little information is provided with regard to the size or volume of work that the M/WBE can perform, either on an individual project or in the aggregate.

6 As a result, prime contractors often send solicitations to firms only to learn, after vetting, that the M/WBE does not or cannot actually perform the required work in a particular trade.

Current Certifications Do Not Provide Basic Information such as Licenses and Registration. Existing certification procedures do not verify even basic information and credentials provided by the M/WBE contractor, such as relevant licenses or registrations required by the NYC Building Code. The recent Minority and Woman-Owned Business Capacity Analysis – Firms Certified By the City of New York, conducted by Dr. Thomas Boston of Euquant shows:

Overall only 14.3% of the NYC certified M/WBE contractors have the licenses/registrations that are required to obtain building permits.

• Electrical Contractors

• Plumbing Contractors

• General Contractors

• Concrete Contractors

• Fire Suppression Contractors

 

75

 

413

18%

   

9

184

5%

   

262

   

1,247

21%

15

 

508

3%

 

5

231

2.1%

 

Only 3.2% of M/WBE contractors on the New York State list of certified M/WBE contractors in 5 major construction trades have the required licensing/registration required by the NYC Building Code:

• Fire Suppression Contractors

• Plumbing Contractors

• General Contractors

• Electrical Contractors

• Poured Concrete Contractors

1

 

459

.2%

 

2

90

1.8%

 

18

 

161

11%

24

 

232

10%

1

 

476

 

.2%

CONSEQUENCES OF PROBLEMATIC CODING SYSTEMS AND INADEQUATE FUNDING FOR SUCH SYSTEMS

The database of certified M/WBEs provided by governmental agencies offers little or no utility to prime contractors. Instead of helping connect prime contractors with appropriate M/WBE candidates, existing agency databases most often result in prime contractors wasting time and money only to learn that the M/WBE certification and information was misleading, incomplete or inaccurate.

Additionally, without a clear and accurate list of available and capable M/WBE firms that can provide a “Commercially Useful Function” in various disciplines and capacity levels, realistic M/WBE aspirational goals cannot be established.

The result has been a cycle of agencies setting increasingly unrealistic M/WBE goals based on databases that create nothing more than the illusion that M/WBEs exist in sufficient numbers. “Public counts” of certified M/WBEs are essentially codifying goals based on inaccurate and incomplete data.

Ms. Rascon’s report also addresses the problems in the existing coding and classification systems that have led to confusion and contribute to an overall process that:

“fails to accurately describe which M/WBE companies can operate effectively in different sectors of the public works arena.” (p.4)

Her report concludes by stating:

“The failure to increase policy and resource coordination among City and State programs and the development of a uniform commodity code system will continue to hinder the establishment and achievement of participation goals by city and state agencies and prime contractors over the long term. Without a clear and accurate picture of the actual pipeline of available and capable M/ WBE firms, government agencies will face additional challenges in forecasting agency needs and M/WBE development costs”, (p.6).

A well-conceived certification process, supported by well-funded oversight by

the agencies responsible for administration of that process, would serve the public

agencies, prime contractors and, most importantly, M/WBEs, by offering a genuine resource. The M/WBE program will only achieve success if the certification process

accurately reflects their company’s ability to perform a “Commercially Useful Function”

in the trade in which they are certified.

The Measure of Success for Certification Agencies. The goal and measure of success for NYC and NYS Certification agencies is currently defined by how many companies each certifies in a given year, without regard to the accuracy or benefits afforded by that certification. In other words, certifying more M/WBEs with incorrect or incomplete information is regarded as a success, despite the fact that such certification does not assist either the M/WBE in seeking contract awards or serve as an effective resource for prime contractors looking to identify M/WBE’s for potential contract awards.

A more effective measure of success would be how many of the city and state certified

M/WBE firms on their respective lists actually responded to solicitations and were awarded contracts. It would also be valuable in determining why M/WBE firms did not respond to solicitations or were not awarded a contract.

A

well-funded and well-conceived certification process should be evaluated relative

to

its contribution towards the success of contract awards, not a metric that has

limited value.

The Manhattan District Attorney Has Reached the Same Conclusions on M/WBE Certification. Manhattan District Attorney Cyrus R. Vance, Jr. empaneled a Grand Jury to examine the “vulnerability of M/WBE programs to fraud and abuse.” On November 14, 2014, the Grand Jury released its report with recommendations proposing administrative, executive and legislative steps to “deter M/WBE fraud and improve enforcement and prosecution efforts to those who abuse M/WBE programs and bring them to justice.”

Included in the Grand Jury report was a recommendation for:

“Increased resources devoted by the certifying and contracting agencies to oversee M/WBE programs”, (p.4).

The Grand Jury report outlined the basic scrutiny that public agencies should have the financial resources to provide in order to reduce M/WBE fraud:

“The first tier of scrutiny should be through vetting of each M/WBE application at both the certification and re-certification stages. Agencies should be given ample personnel to conduct onsite inspection of the M/WBE’s place of business, warehouse, or storage facility to confirm the existence of a workforce, equipment and supplies.

These measures would ensure that M/WBE’s have the capacity to perform the type of work for which they have been certified, providing prime contractors with the confidence in the list of certified qualified M/WBE’s.” (p. 11)

Public agencies do not have the financial resources necessary to ensure every M/WBE contractor on their certification list has the physical plant, experience, licensing or other requirements that would support the performance of a Commercially Useful Function in the industry/commodity classifications in which the firm is listed. As a result, the certification process is limited to ownership validation, without an evaluation or the wherewithal to perform specific types of work.

COMPLIANCE WITH CONSTITUTIONAL STANDARDS

Both New York City and New York State Agencies, in an effort to achieve their 30% aspirational M/WBE goals, have adopted administrative provisions which could lead to potential legal challenges if not revised.

The purpose of this section is not to advocate, condone or recommend any legal conclusions be drawn from this case law. Rather, it is to provide information on how legal precedent influences the analysis of M/WBE programs at the federal, state and local level.

The changes being advocated by the BTEA are to ensure that time, effort and resources are focused on how to successfully implement provisions that will successfully lead to achieving a 30% goal.

There have been far too many successful challenges when the legality and constitutionality of M/WBE programs have gone beyond the framework of the law such as in Atlanta, Baltimore, Chicago and Philadelphia.

Recently in New York State, the Association of General Contractors of New York State has filed an Article 78 action against seven New York State agencies with regards to how those agencies establish their M/WBE goals. The BTEA wants to ensure that this does not happen and cannot jeopardize efforts to build capacity and grow M/WBE construction companies in New York.

The landmark U.S Supreme Court decision in the City of Richmond v. J.A. Crosson, 488 U.S. 469, 493 (1989) case established that “strict scrutiny” will be applied to local or state government programs that are race or gender conscious.

Continued use of such administrative policies such as liquidated damage clauses in public sector contracts when prime contractors fail to achieve aspirational goals after due diligence efforts to do so, and/or public agencies who give poor project performance ratings for failure to achieve aspirational M/WBE goals are examples of policies that too often have served as a catalyst for legal challenges. The BTEA wants to prevent that from even being a consideration by anyone.

RECOMMENDATIONS FOR ACHIEVING 30% MINORITY & WOMEN-OWNED BUSINESS GOALS 22

RECOMMENDATIONS FOR ACHIEVING 30% MINORITY & WOMEN-OWNED BUSINESS GOALS

RECOMMENDATION 1 INCREASE FINANCIAL ASSISTANCE AND WORKING CAPITAL FOR M/WBES

RECOMMENDATION 1 INCREASE FINANCIAL ASSISTANCE AND WORKING CAPITAL FOR M/WBES

NYC and NYS Loan programs should be expanded by: 1) increasing the number of private financial institutions that participate in funding the program and 2) increasing the available funds by a minimum investment of $100 million in each of the respective loan programs. The lack of access to capital has long been an obstacle to growing M/WBE companies and these funds need to be increased.

Additional capital could be raised either with City pension funds and/or from private financial institutions with which the City and State have financial accounts. Private financial institutions should be required to invest some minimum amount in these programs, as has been done in the Federal Community Bank Investment Fund for Home Mortgages.

RECOMMENDATION 2

IMPROVE

PROCESSES

CHANGE

ORDER

AND

PAYMENT

PUBLIC

AGENCY

Among the most important reforms the City and State can adopt which would dramatically improve the business environment for all construction companies, and in particular for M/WBE contractors, is to improve public agency change order and payment processes.

In general, both the City and State change order approval and payment processes are major impediments to all contractors that work for City and State public agencies, but the challenge is especially problematic for M/WBE contractors.

Inadequate cash flow means workers do not get paid, health and welfare and pension funds are underfunded, and suppliers and vendors needed for present and future projects choose to no longer work for that M/WBE contractor.

Improving the business climate by addressing the delays in approving change orders and payments to contractors would be a major step forward.

RECOMMENDATION 3 ADOPT LEGISLATION TO REQUIRE ALL NYC AND NYS PUBLIC AGENCIES AND AUTHORITIES TO ESTABLISH SMALL BUSINESS PROGRAMS FOR CONTRACTS UP TO $400,000 AND TO WAIVE BONDING FOR THOSE PROJECTS.

AND AUTHORITIES TO ESTABLISH SMALL BUSINESS PROGRAMS FOR CONTRACTS UP TO $400,000 AND TO WAIVE BONDING

All City and State agencies should be granted legislative authority to create a Small Business Program for direct contracts, similar to what was done for the MTA in 2015 up to a dollar amount of $400,000.

Included in the new legislation should be public agencies' authority to waive performance bonds for projects within the small business program. The requirement to obtain performance bonds has been a particular burden to M/WBE contractors for decades and a significant obstacle to their growth, because too often they lack the corporate financial capital and personal assets they need as collateral which are necessary for surety bonding companies to issue small M/WBE firms a bond.

The MTA program, authorized by New York State law two years ago, established such a program for small contractors, irrespective of race or gender, to compete and bid for such contracts directly to the agency rather than through a prime contractor. Essentially, this process allows those firms to in effect be their own “prime contractor”, working directly for the agency. The MTA model can be an effective tool for increasing and growing the capacity of M/WBE’s.

The New York City School Construction Authority’s Mentoring Program is another successful model which could be implemented in all City and State Agencies. In the SCA Mentor Program the SCA identifies contract opportunities of $500,000 or less in which small M/WBE contractors can bid directly to the agency, waives bonding and offers to M/WBE firms the ability to avail themselves of independent technical assistance paid for by the SCA when needed. The SCA also has a Graduate Mentor program with contracts between $750,000-$1 million.

Key

M/WBE contractors.

to both

of

these programs is the ability of the agencies

to pre-qualify

Under federal law, small business set-aside programs can be established if they are race-neutral. All City and State agencies should establish such programs and be able to pre-qualify the M/WBE construction companies to compete for projects in their programs.

RECOMMENDATION 4 ESTABLISH A NEW YORK STATE GENERAL LIABILITY INSURANCE FUND FOR SMALL AND M/WBE COMPANIES

RECOMMENDATION 4 ESTABLISH A NEW YORK STATE GENERAL LIABILITY INSURANCE FUND FOR SMALL AND M/WBE COMPANIES

In order for small and M/WBE contractors to either obtain or be able to afford general liability insurance policies they need to operate their businesses, NYS needs to establish a General Liability Insurance Fund as the insurer of last resort.

The cost and availability of general liability insurance is and will remain a major impediment to all contractors, but especially small and M/WBE contractors. Increasing the availability and reducing the cost of general liability insurance would resolve a significant obstacle to growing M/WBE companies.

Having NYS establish a General Liability Insurance Fund and offering General Liability Insurance as the insurer of last resort for M/WBE’s to obtain affordable general liability insurance is the only option absent repeal of Labor Law 240.

RECOMMENDATION 5 ELIMINATE THE THRESHOLD OF PERSONAL FINANCIAL NET WORTH AND OTHER FINANCIAL LIMITATIONS ON M/WBES

RECOMMENDATION 5 ELIMINATE THE THRESHOLD OF PERSONAL FINANCIAL NET WORTH AND OTHER FINANCIAL LIMITATIONS ON M/WBES

Net worth restrictions limit the ability of M/WBE contractors to secure bonding and financial capital. Not only do net worth constraints effectively cap the size of the prime contract that an M/WBE contractor can perform, M/WBEs are forced out of relevant programs too soon in the company’s evolution. In turn, an M/WBE that is beginning to thrive is without support at perhaps the most pivotal point in the enterprises history.

RECOMMENDATION 6 EXPAND TECHNICAL ASSISTANCE AND MENTORSHIP FOR M/WBES AND INCREASE FUNDING FOR M/WBE CAPACITY BUILDING PROGRAMS.

6 EXPAND TECHNICAL ASSISTANCE AND MENTORSHIP FOR M/WBES AND INCREASE FUNDING FOR M/WBE CAPACITY BUILDING PROGRAMS.

Growing M/WBEs contractors' requires technical guidance, support and assistance as the emerging enterprises face challenges. Programs that effectively support and mentor M/WBEs must be expanded and implemented and agency managed. In this regard, the SCA, MTA and Port Authority mentorship and support programs should be carefully analyzed, expanded and implemented by all agencies. The City and State must also significantly increase M/WBE capacity building programs.

The Building Trades Employers’ Association and its members fully agree with the recommendation included in the Black Institutes recent report Not Good Enough: The Myth of Good Faith and Best Efforts, which says:

“New York State and New York City governments must include a larger educational component in their M/WBE assistance programs to help new companies reduce their learning curve”, (p.47).

RECOMMENDATION 7 STREAMLINE AND REFORM THE M/WBE CERTIFICATION PROCESS AND INCREASE FUNDING FOR THIS PURPOSE.

RECOMMENDATION 7 STREAMLINE AND REFORM THE M/WBE CERTIFICATION PROCESS AND INCREASE FUNDING FOR THIS PURPOSE.

A well-conceived certification process, with well-funded oversight from relevant

agencies, that facilitates clear and functional identification of M/WBEs and their respective capabilities and is a basic need if M/WBE programs are going to be successful.

Such a certification process and database must be based on a redeveloped commodity code system that provides greater clarity regarding the specific work that the M/WBE performs. Public agencies must vet the information provided to be sure that

it is accurate and presents a clear assessment of work for which the M/WBE is capable

of performing.

The resulting system should be monitored relative to the utility it provides those who

seek to contract with M/WBEs. Additionally, the measure of success of the effort should

be tied to the results that it yields (not merely volume entered in the system). Doing so

would serve the public agencies, prime contractors and, most importantly, M/WBEs, by offering a genuine resource.

Consideration should be given to utilizing the North American Industry Classification System (NAICS) that was created by the federal government to classify firms into industries according to the type of services and products they provide. The classification

code consists of six (6) digits, which not only classify a firm by its broad industry, but also by detailed sub-industry categories. Each digit provides greater industry specificity. For example: Construction Contractor—Heavy Construction Contractor-Construction Contractor for Highways and Bridges-Steel Erection Contractor. NAICS is not without

its weaknesses and does not offer the full utility that would benefit M/WBEs, however

it may serve as a reasonable starting point for further development.

At present, disparate agencies and the City and State act independently in vetting

and preparing certifications of M/WBEs, using differing codes and approaches that

offer limited utility.

M/WBEs prepare volumes of paperwork for each agency and

prime contractors have no efficient means of identifying capable M/WBEs for discrete opportunities. This recommendation envisions centralizing the process and developing a master database that yields efficiency and valuable information for all concerned

City and State agencies and Authorities should work with prime contractors to identify the information commonly required from subcontractors as part of the pre-qualification process that individual companies generally perform. That information should be included as part of the expanded and centralized database discussed in prior recommendations in this report. Specific information should be included regarding the volume of work that each M/WBE has the capacity to perform, both in the aggregate and each project. Additionally, the database should be regularly updated to identify changes and work then under contract by each M/WBE.

RECOMMENDATION 8

ADOPT LEGISLATION TO REQUIRE ALL CITY AND STATE PUBLIC AGENCIES TO PRE-QUALIFY M/WBE CONTRACTORS.

RECOMMENDATION 8 ADOPT LEGISLATION TO REQUIRE ALL CITY AND STATE PUBLIC AGENCIES TO PRE-QUALIFY M/WBE CONTRACTORS.

The NYC School Construction Authority and the Port Authority of New York and New Jersey have successfully used a pre-qualification system to ensure that all potential contractors, including M/WBE contractors, have the experience, knowledge and meet licensing requirements necessary to perform “Commercially Useful Function” services on their projects. All City and State Agencies and Authorities should be granted the legislative authority to establish pre-qualified lists of M/WBE firms which then should be provided to prime contractors for contract opportunities. The advantages of establishing such a centralized pre-qualification process for M/WBE’s include:

• Reducing the time and cost to M/WBEs in preparing pre-qualification submissions to individual prime contractors;

• Reducing the time and cost to prime contractors when searching for M/WBE firms, thus reducing the project cost to the City and State;

• A bidding process that is more transparent to all parties and saves tax payer dollars;

• Establishing project goals that more accurately reflect the actual availability and capacity of firms within the marketplace for the particular project;

• Reducing or eliminating the potential for M/WBE fraud.

RECOMMENDATION 9

REFORM THE M/WBE REGULATORY FRAMEWORK.

RECOMMENDATION 9 REFORM THE M/WBE REGULATORY FRAMEWORK.

The use of administrative policies such as liquidated damage clauses and poor performance evaluations of prime contractors for their inability to achieve aspirational M/WBE goals must be eliminated in order to protect M/WBE programs from any potential legal challenge by anyone.

When prime contractors meet the due diligence requirements established by public agencies in seeking to attain M/WBE aspirational goals on any project, waivers should be automatically granted.

Establishment of administrative provisions which penalize prime contractors, and exceed the constitutional and legal framework for M/WBE programs, have been created because aspirational goals are not aligned with the capacity of M/WBE contractors to perform the Commercially Useful Function required by NYC Local Law 1 and New York

State Executive Order 15-A.

RECOMMENDATION 10

EXPAND PRIVATE SECTOR CONTRACTOR PARTICIPATION TO STRENGTHEN M/WBE PROGRAMS

RECOMMENDATION 10 EXPAND PRIVATE SECTOR CONTRACTOR PARTICIPATION TO STRENGTHEN M/WBE PROGRAMS

While many city and state agencies may have established M/WBE Advisory Councils, they have not effectively engaged private sector prime contractors as true partners in this effort.

New York City and New York State, if they have M/WBE forums, should expand the participation of private sector contractor representation in efforts to assist building M/WBE Capacity and provide technical assistance where appropriate.

RECOMMENDATION 11 NEW YORK CITY AND NEW YORK STATE AGENCIES SHOULD WORK WITH THE BTEA TO ESTABLISH PROJECT LABOR AGREEMENT (PLA) EDUCATIONAL PROGRAMS AND TO DEVELOP TECHNICAL SUPPORT FOR M/WBES WORKING ON PLA PROJECTS.

PROJECT LABOR AGREEMENT (PLA) EDUCATIONAL PROGRAMS AND TO DEVELOP TECHNICAL SUPPORT FOR M/WBES WORKING ON PLA

The BTEA recommends that all City and State Agencies and Authorities partner with the BTEA to provide informational programs to review their respective Project Labor Agreements in an effort to encourage M/WBEs to compete for Project Labor Agreement contract opportunities.

Delta Airline Terminal

LaGuardia Airport Redevelopment

Penn Station and Moynihan Station

NYC School Construction/Authority

Building-it-Back: Hurricane Sandy Reconstruction

NYC Housing Authority

Javitts Convention Center

NYC Green Jobs Renovations

Dormitory Authority of NYS

NYC Public Agencies

New York City and New York State have some $15 – 20 billion of current and future projects and contract awards with Project Labor Agreements. They include hundreds of projects in NYC’s Capital Program including a new $2.5 billion retrofit of all NYC public buildings to become energy efficient and meet new environmental standards, the NYC School Construction Authority, NYC Housing Authority, NYC Build It Back, NYS Dormitory Authority, La Guardia Airport Redevelopment, Penn Station redevelopment and Moynihan Station, Javits Center Renovation, JFK Airport Redevelopment and most likely a new projected Delta Airlines Terminal.

NEW YORK CITY–STATE PLA’S $15-2O BILLION

12

10

8

6

4

2

0

NEW YORK CITY–STATE PLA’S $15-2O BILLION 12 10 8 6 4 2 0 Project Labor Agreements

Project Labor Agreements are utilized by these Agencies because 1) they reduce costs and save taxpayer dollars, 2) accelerate project completion schedules, 3) preserve construction quality, and 4) in NYC PLA's provisions that require the

recruitment of NYC residents to be enrolled into NYC Building and Construction Trades Council Apprentice Programs creating new jobs for city residents.

Yet, according to a recent survey of NYC certified M/WBEs conducted by the General Contractors Association:

• 52.6% said they would not consider working under a Project Labor Agreement. Many cited their unwillingness to pay prevailing wages, as required by law, as a primary reason.

These are lost opportunities for M/WBE contractors to compete for the new construction contracts they need to grow their business.

New York State Law requires that all contractors, union and non-union alike, be afforded the opportunity to compete and bid for construction contracts under Project Labor Agreements.

Any contractor can be awarded a contract even though they may not be signed to a collective bargaining agreement (CBA) with organized labor. Under a Project Labor Agreement, a contractor has only to sign a CBA for that project and that project only, if they are the successful bidder.

As Dr. Boston’s study shows:

1 There is a lack of capacity to achieve M/WBE aspirational goals of 30%,

2 There is a lack of capacity of M/WBEs in the trades that have the licenses/registrations required by the NYC Building Code and;

These two factors and the fact that:

3 M/WBEs are reluctant to bid $15-20 billion dollars of construction contracts

under Project Labor Agreements; make it unlikely New York City or New York State will be able to achieve 30% M/WBE aspirational goals.

The Building Trades Employers’ Association feels strongly that the reason M/WBE’s do not compete for PLA contracts is a lack of understanding about the terms and conditions in performing the work in question for PLA projects.

For any firm, especially an M/WBE company, signing a lengthy contract with terms and conditions that are unfamiliar can be an intimidating experience.

The BTEA, its member contractor associations and individual contractors have been and are prepared to work with City and State Agencies working under Project Labor Agreements to create a Technical Support Program for those M/WBE contractors to assist them in understanding and addressing Project Labor Agreements with issues that they may face in performing on a project.

BTEA OFFICERS

CO-CHAIRMAN

Richard Kennedy Skanska USA Building Contractors Association

CO-CHAIRMAN

Joe Leo Atlantic Contracting & Specialties Insulation Contractors Association

TREASURER

Charles Murphy Turner Construction Company Contractors Association of Greater New York

GENERAL COUNSEL

Steve M. Charney, Esq. Peckar & Abramson Building Trades Employers’ Association

VICE CHAIRMAN

Steven Alessio Sweet Construction Corp. Building Contractors Association

VICE CHAIRMAN

Jay Badame Tishman Construction Corp. Building Contractors Association

VICE CHAIRMAN

Scott Corneby Structure Tone, Inc Building Contractors Association

VICE CHAIRMAN

Don DeNardo Lend Lease LMB, Inc. Contractors Association of Greater New York

VICE CHAIRMAN

Pat A. DiFilippo Turner Construction Co. Contractors Association of Greater New York

VICE CHAIRMAN

Ralph Esposito Lend Lease LMB, Inc. Contractors Association of Greater New York

VICE CHAIRMAN

Victor Gany Center Sheet Metal, Inc. Sheet Metal & Air Conditioning Contractors Assn.

VICE CHAIRMAN

Stephen Gianotti Arcadia Electrical Co., Inc. NYC Chapter, NECA

VICE CHAIRMAN

Arthur Rubinstein Skyline Steel Corp. Allied Building Metal Industries

VICE CHAIRMAN

Michael Russo Fresh Meadow Mechanical Corp. Mechanical Contractors Association

VICE CHAIRMAN

Paul Vieira IDL Communications & Electric NECA, NY Chapter

VICE CHAIRMAN

Lee Zaretzky Ronsco, Inc. Assn. of Wall-Ceiling & Carpentry Industries

PRESIDENT

Louis J. Coletti Building Trades Employers’ Association

BTEA EXECUTIVE COMMITTEE

Patrick Barrett Jantile, Inc, Greater NY & NJ Tile Contractors Association

Jake Bidosky Keystone Management Associates, LLC Allied Building Metal Industries

Joseph Fitzpatrick TDX Construction Corp. Building Contractors Association

Larry Gillman Skanska USA Civil Northeast General Contractors Association

Scott Haber W & W Glass Systems Window & Plate Glass Dealers Assn.

Eric Haynberg Regal USA Concrete The Cement League

Steven Jureller Cauldwell Wingate Company, LLC Contractors Association of Greater New York

Ark Latt Plaza Construction Corp. Contractors Association of Greater New York

Anthony Mann E-J Electric Installation Company NYC Chapter, NECA

David Meberg Consolidated Carpet Trade Workroom, Inc. Greater NY Floor Coverers Assn.

Christopher Mills Plaza Construction Corp. Contractors Association of Greater New York

Allan Paull Tishman Construction Corp. Building Contractors Association

Robert Perricone Component Assembly Systems Assn. of Wall-Ceiling & Carpentry Industries

Bert Rahm Turner Construction Company Contractors Association of Greater New York

Ralph Thompson Sciame Construction Building Contractors Association

Justin Tomasino KONE New York Metropolitan District Elevator Manufacturers Association

Peter C. Vrankovic, PE KSW Mechanical Mechanical Contractors Association

Scott Wolkowitz Wolkow-Braker Roofing Corp. Roofing and Water Proofing Contractors Assn.

Richard Wood Plaza Construction Corp. Contractors Association of Greater New York

PAST CHAIRMAN

David Pinter Zwicker Electric Co., Inc. NYC Chapter, NECA

BTEA BOARD OF GOVERNORS

ALLIED BUILDING METAL INDUSTRIES

BOARD REPRESENTATIVES

Jake Bidosky Keystone Management Associates, LLC

Herbert Koenig Allied Development Corporation

Arthur Rubinstein Skyline Steel Corp.

Robert Samela

AC Associates

ASSOCIATION DIRECTOR

William Shuzman

ASSOCIATION OF ELECTRICAL CONTRACTORS

BOARD REPRESENTATIVES

Carol Kleinberg Kleinberg Electric, Inc.

John Mannino Up Town Electric, Inc.

Alex Samilenko Fred Gellar Electrical Inc.

ASSOCIATION DIRECTOR

Jeff Elmer

ASSOCIATION OF MASTER PAINTERS & DECORATORS OF NEW YORK, INC.

BOARD REPRESENTATIVES

Peter Cafiero Island Painting, Inc.

Rad Jelcic Target Painting Company

ASSOCIATION DIRECTOR

Bruce Ruinsky

ASSOCIATION OF WALL-CEILING & CARPENTRY INDUSTRIES OF NEW YORK

BOARD REPRESENTATIVES

Phil Bonadonna Pabco Construction Corp. Robert Perricone Component Assembly Systems Michael Weber Island Acoustics LLC Lee Zaretzky Ronsco, Inc.

ASSOCIATION DIRECTOR

John DeLollis

BOILERMAKERS ASSOCIATION OF GREATER NEW YORK, INC.

BOARD REPRESENTATIVES

Sam M. Mirian Megrant Corp.

ASSOCIATION DIRECTOR

William Rothberg

BUILDING CONTRACTORS ASSOCIATION

BOARD REPRESENTATIVES

Steven Alessio Sweet Construction Corp. Jay Badame Tishman Construction Corp. Scott Corneby Structure Tone, Inc. Joseph Fitzpatrick TDX Construction Corp. Richard A. Kennedy Skanska USA Building Allan Paull AECOM Tishman Construction Corp. Ralph Thompson Sciame Construction

ASSOCIATION DIRECTOR

John O’Hare

BUILDING RESTORATION CONTRACTORS ASSOCIATION, INC.

BOARD REPRESENTATIVES

Roger Ennis Deerpath Construction Corp. Tom Hussey AM & G Waterproofing, LLC

ASSOCIATION DIRECTOR

William Rothberg

BUILDING STONE AND PRECAST CONTRACTORS ASSOCIATION

BOARD REPRESENTATIVES

Hans Lechner Sky-Lift Corp. Lawrence Weiss A.J. McNulty & Company, Inc.

THE CEMENT LEAGUE

BOARD REPRESENTATIVES

Ron Ferrari SBF Construction Eric Haynberg Regal USA Concrete Eric Lee RCC Concrete Ernesto Tersigni Park Avenue Concrete Contracting Stone Setters Association, Inc.

ASSOCIATION DIRECTOR

Michael Salgo

CONTRACTING STONE SETTERS ASSOCIATION, INC.

CONTRACTORS ASSOCIATION OF GREATER NEW YORK

BOARD REPRESENTATIVES

Don DeNardo Lend Lease LMB, Inc.

Pat Di Filippo Turner Construction Company Ralph Esposito Lend Lease LMB, Inc. Steven Jureller Cauldwell Wingate Company, LLC Ark Latt Plaza Construction Corp. Christopher Mills Plaza Construction Corp. Charles Murphy Turner Construction Company Bert Rahm Turner Construction Company

ASSOCIATION DIRECTOR

Raymond McGuire

ELEVATOR MANUFACTURERS ASSOCIATION OF NEW YORK

BOARD REPRESENTATIVES

Andy Werkoven Schindler Elevator Corp. Justin Tomasino KONE New York Metropolitan District

ASSOCIATION DIRECTOR

Rick Amarosa

GENERAL CONTRACTORS ASSOCIATION

BOARD REPRESENTATIVES

Rick DiLouie Urban Foundation and Engineering Larry Gillman Skanska USA Civil Northeast, Inc.

ASSOCIATION DIRECTOR

Denise Richardson

GREATER NEW YORK & NEW JERSEY TILE CONTRACTORS ASSOCIATION

BOARD REPRESENTATIVES

Scott Erath Wm. Erath & Son, Inc. Patrick Barrett Jantile, Inc.

GREATER NEW YORK FLOOR COVERERS ASSOCIATION, INC.

BOARD REPRESENTATIVES

David Meberg Consolidated Carpet Trade Workroom, Inc.

INSULATION CONTRACTORS ASSOCIATION OF NEW YORK

BOARD REPRESENTATIVES

Donald A. Donnelly, Jr. Thomas J. Donnelly, Inc. Joe Leo Atlantic Contracting Specialties, LLC.

ASSOCIATION DIRECTOR

John DeLillo

MECHANICAL CONTRACTORS ASSOCIATION OF GREATER NEW YORK, INC.

BOARD REPRESENTATIVES

Salvatore Barbera A.D. Winston Corp. Anthony Bell Martin Associates, Inc. Timothy Bowe ABCO Peerless Sprinkler Corp. Kenneth Durr Durr Mechanical Construction, Inc.

William McMorrow, Jr. Phoenix Mechanical Piping, LLC Michael Russo Fresh Meadow Mechanical Corp. Peter C. Vrankovic, PE KSW Mechanical, LLC

ASSOCIATION DIRECTOR

Tony Saporito

NATIONAL ELECTRICAL CONTRACTORS ASSOCIATION (NECA), NEW YORK CHAPTER

BOARD REPRESENTATIVES

Stephen Gianotti Arcadia Electrical Co., Inc. Anthony Mann E-J Electric Installation Company David Pinter Zwicker Electric Co., Inc.

ASSOCIATION DIRECTOR

Edwin Lopez

NEW YORK CITY DEMOLITION CONTRACTORS ASSOCIATION

BOARD REPRESENTATIVES

Alex Concanon & Kenny Frohlick Gateway Demo/Civil Corp. Sal Russo, Jr. Russo Development Enterprises, Inc.

ASSOCIATION DIRECTOR

David Etkind

PLASTERING AND SPRAY FIREPROOFING CONTRACTORS OF GREATER NEW YORK, INC.

BOARD REPRESENTATIVES

Sal Di Lorenzo P.A.L. Environmental Safety Michael Patti E. Patti & Sons

ROOFING AND WATERPROOFING CONTRACTORS ASSOCIATION

BOARD REPRESENTATIVES

Robert Ansbro The New York Roofing Company Scott Wolkowitz Wolkow-Braker Roofing Corp.

ASSOCIATION DIRECTOR

William Rothberg

SHEET METAL AND AIR CONDITIONING CONTRACTORS’ ASSOCIATION

BOARD REPRESENTATIVES

Victor Gany Center Sheet Metal, Inc. James Orlando JPR Mechanical Inc. Robert Ansbro The New York Roofing Company

ASSOCIATION DIRECTOR

William Rothberg

STRUCTURAL STEEL PAINTING CONTRACTORS ASSOCIATION OF NEW YORK, INC.

BOARD REPRESENTATIVES

Kieran Ahern Ahern Painting Contractors, Inc.

Daniel F. O’Connell Drinker Biddle & Reath LLP

ASSOCIATION DIRECTOR

Jed Coldon

SUBCONTRACTORS TRADE ASSOCIATION

BOARD REPRESENTATIVES

Robert Ansbro The New York Roofing Company Patrick Gallagher Cannon Mechanical Robert Weiss A.J. McNulty & Co., Inc.

ASSOCIATION DIRECTOR

Henry Kita

THE HOISTING AND SCAFFOLDING TRADE ASSOCIATION, INC.

BOARD REPRESENTATIVES

Kenneth Buettner York Scaffold Equipment Corp. Kevin M. O’Callaghan Universal Builders Supply, Inc.

WINDOW & PLATE GLASS ASSOCIATION OF NEW YORK

BOARD REPRESENTATIVES

Jerome Haber W&W Glass, LLC Scott Haber W&W Glass, LLC

PAST CHAIRMEN

David Pinter Zwicker Electric Co., Inc. NYC Chapter, NECA

Michael Russo Fresh Meadow Mechanical Corp. Mechanical Contractors Association