Alston & Bird have released their June 18 COVID-19 update, including the latest news on emergency funding, administrative and regulatory actions, workplace and home issues, and many other topics, as well as to links to all their past updates.
MCAA members are innovating and creating new ways to help minimize the impact of COVID-19. Tweet/Garot Mechanical, Inc. of De Pere, Wisconsin, is just one example. In partnership with the teams at HGA, Boldt, Faith Technologies and IMEG, they provided an acute care solution in under two weeks.
With the majority of the team working remotely, Tweet/Garot and their partners had to be innovative in their collaboration. The project kicked off with a virtual big room where component teams worked through design constraints and constructability challenges while considering “off-the-shelf” approaches to the project.
As a result, the project used a standard HVAC rooftop unit retrofitted to meet isolation room requirements. This one-model approach allowed component teams to start clash detection while the design continued to evolve.
Once design was complete, the manufacturing team worked with Boldt’s facility in Appleton to streamline the production process using pull-plan sessions, completing the project start to finish in less than 10 days.
The resulting STAAT ModTM (Strategic, Temporary, Acuity-Adaptable Treatment) prefabricated modular solution can be deployed for use as either stand-alone hospitals or inside convention centers, arenas and temporary structures. It is one of the only temporary care units that can be deployed quickly to provide hospital-level care to patients suffering from coronavirus.
The STAAT ModTM solution can be configured as:
The STAAT ModTM solution was created and tested with a variety of enhanced features designed to ensure safety, allow for rapid construction and reduce costs. Virtual Reality (VR) simulation exercises allowed experts including critical care nurses trained in COVID-19 protocols, a hospital environmental specialist in infection control, and lean process engineers to test the system during design so that the solution could be constructed and delivered rapidly.
Patients and healthcare workers benefit from:
Contractors are able to:
Tweet/Garot gained valuable takeaways from the collaborative project. Leadership and trust were maintained among all partners, allowing the design and construction teams to successfully achieve their goals and generate a feedback loop for quick decision-making. Real-time updates from the constant daily collaboration helped address constraints, and ultimately eliminated waste.
This innovative joint effort is helping to pave the way for the healthcare construction market while at the same time minimizing the impact on the community. We’re all in this together.
Main Street Lending Program (“MSLP”): The MSLP was first introduced back in April and there was a lot of initial press around the program as an alternative to the PPP for larger companies. Actually rolling it out to the public, however, became a slow and arduous project. The program went through several changes and enhancements to make it more accessible to both the middle and upper-middle markets. On June 17th it was announced that the loan portal was open to lenders. This program, much like the PPP, will be administered through banks/lenders rather than through the SBA.
The MSLP is not yet available for potential borrowers to obtain loans, but now that it is open to lenders, we suspect it will open up to borrowers shortly. Here is a link to FAQs that are helpful as this program continues to evolve.
Below are some highlights of the MSLP:
Reminder Section: (what should I be doing):
William E. Walter Inc. Mechanical Contractors (William E. Walter) presented Alex Vernon-Venzuela Peter with an MCAA Internship Grant at the start of his internship. The grant, which is funded by the John R. Gentille Foundation, will help subsidize his expenses while he gains valuable work experience this summer.
Alex is a junior at Ferris State University, where he studies HVAC/R Engineering Technology and Energy Management.
William E. Walter chose to honor their commitment to Alex’s 4-month, 40 hours a week internship in spite of COVID-19. “Even in these challenging times it is important that we continue to support the growth and knowledge of future employees entering into the industry,” said Bruce Wenzlick, the company’s Director of Construction Services.
This is Alex’s first year as an intern with William E. Walter. His duties are focused on estimating and project management. He is assisting with things like quoting new jobs and submittals, change orders, schedules and material tracking.
Having MCAA interns working at member companies is a win-win for the mechanical contracting industry. Employers get top talent and build a pipeline of future employees. Students gain experience, create connections, develop skills and further their interest in mechanical contracting. In paying the student instead of the employer, MCAA’s goal is to increase the overall number of interns and drive the overall number of talented employees accepting full-time positions with MCAA members after graduation.
The MCAA member company will first ensure a prospective intern is in good standing at an accredited two- or four-year college, university or technical school. While MCAA encourages its members to give priority to students from the MCAA Student Chapter Program, this is not a requirement to receive a grant.
Each MCAA member company can submit up to two internship grant applications per year. Once an application is reviewed and accepted, MCAA will send a $500 gift card to the member company so it can present the Gift Card to the student at the start of their internship.
MCAA will follow-up with each company and intern to ensure the process and overall internship was successful.
MCAAGreatFutures.org gives members access to student profiles and resumes. The profiles are searchable by university, desired location, and even a specific skill set, like BIM or AutoCAD. A keyword filter allows users to zero in on students who fit the bill.
Not finding a match? Try reaching out to our 60 MCAA Student Chapters. The chapter advisors are a great resource to help find the right person. And, MCAA members have exclusive access to post job openings on our job board.
Help build our industry’s GreatFuture – apply for a grant!
The SBA released yet another Interim Final Ruling which provides for a variety of administrative updates/corrections, however there are a few notable clarifications as follows:
EIDL Announcement: The EIDL program (described below) is accepting applications again. Many businesses have struggled to obtain this loan, largely because the SBA was inundated with applications. Now it appears funds are available and they have caught up. A reminder that you can have both an EIDL and PPP at the same time but both cannot be used for the same purposes.
Notice – Now Accepting New Applications for Economic Injury Disaster Loans and Advance: On June 15, SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications from all eligible small businesses and U.S. agricultural businesses. To learn more about eligibility and apply, click here.
Reminder Section: (what should I be doing):
Milwaukee Tool leads a health & safety conversation on tool cleaning and disinfecting for your tools to help prevent the spread of COVID-19. This presentation covers tool sharing protocols, length of virus stability, EPAs List N, and how to properly disinfect tools, batteries, and gear. Raffi Elchemmas, AEP, CHST, is a subject matter expert in construction health & safety. He is an authorized OSHA Outreach Trainer with board certification in professional ergonomics.
Additional Resources:
This webinar was recorded Tuesday, June 16, 2020
MCAA’s Virtual Trade Show connects our contractor members with the members of MCAA’s Manufacturer/Supplier Council.
Participating companies highlight and link to new products, product lines, services, solutions or web pages of particular interest. Here are just a few of the recent additions:
Harris Products Group
Steelworker® Outfit contains all the major components needed for cutting, welding, brazing and heating using all fuel gases. As supplied, cut up to a 1″ plate and weld up to a 1⁄8″plate. Add larger tips and cut 5” plate and weld 1/2” plate.
Galloup Company
Galloup is a premier industrial distributor of pipe, valves and fittings, dedicated to service and support. Serving Michigan, Indiana and Ohio with nine facilities, including two distribution centers.
Find many more smart solutions in MCAA’s Virtual Trade Show!
Visit the Smart Solutions Case Studies area of our website to learn how other mechanical contractors found their win-win with cost-saving and productivity-enhancing applications from members of MCAA’s Manufacturer/Supplier Council.
This section of our website also includes tips and ideas to help your company save money and enhance your productivity. Don’t miss it!
Alston & Bird have released their June 15 COVID-19 update, including the latest news on emergency funding, administrative and regulatory actions, workplace and home issues, and many other topics, as well as to links to all their past updates.
Murphy Company interns Jacob Reed and Morgan Hanley have been onsite project engineering interns for the University of Missouri-Columbia’s NextGen Precision Health Institute. The opportunity has given them a first-hand look at what it takes to build a job on their college campus.
The company continues its work on the facility which supports a systemwide precision health initiative aimed at harnessing and supporting the research activities of its four universities and health system. The building will include lab space for current and new faculty, graduate students, clinicians and have collaborative spaces for work with industry partners.
The facility is the largest single project that the University of Missouri has ever undertaken. The project consists of a new 265,000 sq. ft. six story facility.
The Murphy Company team, in collaboration with their general contractor and trade partners, was hired on in a design-assist capacity completed the following extensive BIM and fabrication on this past year:
Construction on the institute is expected to be completed in October 2021.
Both Jacob Reed and Morgan Hanley began their internships in Murphy Company’s St. Louis office this past spring semester.
Jacob is entering his senior year at the University of Missouri-Columbia, studying Mechanical Engineering. In the spring working 20-hour week, Jacob was able to see the project manager role in action by attending coordination meetings, daily site walks and reviewing construction drawings making him more familiar with the project layout. Since the spring Jacob has transition to a full-time intern this summer.
“Since I have transitioned to full-time for the summer, I feel that I am gaining valuable real-world experience without too much of an internship feel. My responsibilities now include reviewing submittals, tracking productivity, and the commissioning process of equipment. I have been able to soak in as much information as possible, ask plenty of questions about topics I did not fully understand, and have real responsibilities that add value to the work being completed here. I believe it is the perfect balance that is allowing me to apply my skills and develop new ones.”
Jacob looks forward to the rest of his summer internship and continue to learn from Murphy employees the importance of coordination, communication, and critical problem solving.
“I have now seen multiple times how project managers are able to take a problem in stride, communicate with co-workers to create a solution, and implement that solution in a timely manner. I am also looking forward to watching further completion of the NextGen Precision Health Institute. I find it very exciting that I get to see firsthand the construction of a multi-million-dollar research institute at my college.”
Morgan Hanley is a Junior at the University of Missouri-Columbia studying chemical engineering. In the spring Morgan was on-site at the NextGen facility and this summer is currently working in Murphy Company’s engineering department.
“I’ve really enjoyed my time so far with Murphy as it has allowed me to apply what I have learned in my coursework to practical, real-world scenarios. I have enjoyed being able to see two pieces of a bigger puzzle at work. Being on site of NextGen and then coming to the Engineering department has been really interesting because it has closed the loop between the drawings and plans I worked with at Mizzou to how those intricate details, sizings, and selections are determined during the design phase. It has been fascinating to observe the complementary aspects of both locations, and I am excited to learn even more during the rest of the summer.”
Find student chapter members like Derrick by visiting MCAAGreatFutures.org, where members have access to student profiles and resumes. The profiles are searchable by university, desired location, and even a specific skill set, like BIM or AutoCAD. A keyword filter allows users to zero in on students who fit the bill.
MCAA connects students with MCAA members through networking and employment opportunities that help to cultivate the next generation of industry leaders.
The MCAA Career Development Committee is exploring new ways to make these connections with virtual networking and resources in light of the cancellation of the MCAA GreatFutures Forum due to COVID-19.
Please help to ensure that this programming supports your company’s needs by letting us know your company’s hiring plans for the coming year.
Please contact Megan Walsh if you have questions about the GreatFutures program or our student activities and resources.
Accounting for the PPP Loan: A question that Withum has consistently received is: When do we “write off” the PPP loan? This is an important question for borrowers who may have audited financial statements, where the presence of debt can have an impact on the company’s ability to borrow or meet financial covenants. Withum’s view thus far has been that the loan should remain on the balance sheet until such time that the bank has officially forgiven it. The technical accounting guidance would be to view forgiveness as a “gain contingency”, an event that is not fully within the control of the company and not certain to occur, therefore the gain (write off of the loan and related interest) should not be recognized until such time that forgiveness has actually been confirmed.
The AICPA recently released a Technical Question and Answer (TQA) on the matter, while the TQA does indicate that gain contingency guidance is acceptable, it also opens the door to an alternate conclusion (see the link above and excerpt below). This is meaningful because the AICPA and the SEC indicates here that a borrower “may” be permitted to view the loan as a government grant, and therefore you would write it off (into other income on the income statement) as you use the proceeds from the loan based on your best estimate of what will be forgiven. This creates a very different result than the gain contingency guidance above. There is not yet authoritative guidance on this issue, however this TQA is a clear indication that borrowers may have multiple options available to account for this loan.
TQA 3200.18: “How should a nongovernmental entity account for a forgivable loan received under the Small Business Administration Paycheck Protection Program (PPP)?”
Answer: “Given the unique nature of the PPP, questions have arisen relating to how a borrower under the program should account for the arrangement. Although the legal form of the PPP loan is debt, some believe that the loan is, in substance, a government grant.” In addition, the Staff of the SEC’s Office of the Chief Accountant has indicated that they “would not object to an SEC registrant accounting for a PPP loan under FASB Accounting Standards Codification (ASC) 470, Debt, or as a government grant by analogy to International Accounting Standard (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance.”
Reminder Section: (what should I be doing):
Now more than ever, with apps and software connecting employees worldwide, the need for virtual communication skills is crucial. Video calls and virtual meetings are the new “normal” and likely take up most of your day. But are you getting the most out of your meetings? Are you getting distracted? Have you dusted off your nonverbal communication skills? Join us for some basics on effective virtual communication – getting started, some do’s and don’ts, and helpful tools. As we’ve all adjusted to this new world, virtual meetings have proven to be effective. Speaker and author Mark Matteson gives an interactive and tailored presentation, just for MCAA members.
Additional Resources:
This webinar was recorded Thursday, June 11, 2020
MCAA members are continuously building facilities to serve the surge of COVID-19 patients in their communities. New England MCA, Inc. member Harry Grodsky & Company, Inc. is just one example. The company recently completed work on a rapid response triage outside the Baystate Medical Center in Springfield, Massachusetts.
The triage enables medical staff to quickly screen patients to determine which ones are the sickest and need the most immediate care. In addition to the patient care benefits, the triage helps prevent the hospital staff from becoming overwhelmed by overcrowded facilities.
Designed to handle between 30 and 40 patients at a time, the triage is fully equipped, meaning staff can treat patients without entering the hospital’s main building.
In delivering facilities like this one, MCAA members like Harry Grodsky & Company, Inc. are helping to ensure that COVID-19 patients are tested and treated quickly, keeping our communities safer for all of us. We are all in this together.
Alston & Bird have released their June 11 COVID-19 update, including the latest news on emergency funding, administrative and regulatory actions, workplace and home issues, and many other topics, as well as to links to all their past updates.
Where cloth face coverings are not appropriate in the work environment or during certain tasks (e.g., because they could become contaminated or exacerbate heat illness), OSHA allows employers to provide alternative PPE, such as face shields and/or surgical masks.
Like cloth face coverings, surgical masks and face shields can help contain the employee’s potentially infectious respiratory droplets and help limit the spread of COVID-19. Using a face shield in lieu of a cloth face covering can help workers stay cooler in hot climates and reduce the fogging of safety glasses.
If you choose to provide your employees with face shields, it is important they understand the difference between face shields rated for construction tasks (e.g., grinding) and face shields used in the medical industry, which have no built-in impact protection. Most importantly, make sure all your employees have the proper face protection based on the work they will be performing.
60/40 “Cliff” Rule Addressed: As we previously noted, the PPP Flexibility Act. changed the 75%/25% rule to a 60%/40% rule, allowing companies to realize a greater benefit from the non-payroll costs they incurred during their covered period. However, the law seemed to introduce a “cliff” effect whereby a borrower would not obtain ANY loan forgiveness if they did not spend at least 60% of their forgivable expenses on payroll. A joint statement made by Mnuchin and the Treasury today has clarified that this is not the intent. As noted below, it appears the intent is for the mechanics of this ratio to work in a similar way to the previous rule, meaning that non-payroll costs cannot exceed 40% of the total amount of forgiven costs, thus there is not a scenario where there will be no forgiveness on amounts spent if you do not reach a certain spend on payroll. Borrowers just need to understand that increasing spend on payroll increases the non-payroll costs that will be eligible for forgiveness. This is obviously a welcomed clarification for borrowers.
Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
Reminder Section: (what should I be doing):
Prepare your workers for the hot summer days by providing them with the knowledge they need to prevent heat stress related illnesses.
Common heat stress related illnesses and accompanying symptoms include:
MCAA’s safety resources are available for free as a benefit of membership. Be sure to check out:
MCAA’s full range of safety resources are available via our Direct Links to MCAA & MSCA Safety Resources page.
Long-time MCAA partner in safety CNA offers guidance on the subject in one of its highly informative risk control bulletins.
The MCAA’s “Factors Affecting Labor Productivity” can be an invaluable tool when attempting to prove labor productivity loss, a process that has always been one of the most difficult aspects of change management. John Koontz explores how to practically apply the MCAA factors to estimate and price losses of labor productivity. He discusses the dos and don’ts of applying these factors, bridging the gap between theoretical percentages and actual job site impacts. When used correctly, the MCAA factors can be an invaluable resource in both forward pricing change orders and retroactively determining cumulative impacts. This webinar explores best practices for making these factors work for you, helping you to account for additional labor costs resulting from the scope changes and disruption of workflow that occur on jobs far more often than we might like.
Additional Resources:
This webinar was recorded Thursday, June 9, 2020.
Titan Mechanical presented Colton Battin with an MCAA Internship Grant at the start of his summer internship. The grant, which is funded by the John R. Gentille Foundation, will help subsidize his expenses while he gains valuable work experience this summer.
Colton is a senior at Bowling Green State University, where he is studying Construction Management. He will be graduating in December 2020. Colton is a member of the new student chapter at Bowling Green State University, sponsored by the MCA of Northwestern, Ohio, Inc.
This is Colton’s second year interning with Titan Mechanical. He has been successful in the office setting since the impacts of COVID-19, simultaneously social distancing while effectively fulfilling responsibilities as an intern. His work involves estimating, assisting project managers. Some of his duties will be reaching out to sub-contractors, vendors and assisting in implementing Titan Mechanical Inc.’s new estimating software.
John E. Gray, President of Titan Mechanical, had this to say, “Colton will be an asset to any organization moving forward, he really has a thirst for knowledge and wants to be apart of the industry moving forward.”
Having MCAA interns working at member companies is a win-win for the mechanical contracting industry. Employers get top talent and build a pipeline of future employees. Students gain experience, create connections, develop skills and further their interest in mechanical contracting. In paying the student instead of the employer, MCAA’s goal is to increase the overall number of interns and drive the overall number of talented employees accepting full-time positions after graduation.
The MCAA member company will first ensure a prospective intern is in good standing at an accredited two- or four-year college, university or technical school. While MCAA encourages its members to give priority to students from the MCAA Student Chapter Program, this is not a requirement to receive a grant.
Each MCAA member company can submit up to two internship grant applications per year. Once an application is reviewed and accepted, MCAA will send a $500 gift card to the member company so it can present the Gift Card to the student at the start of their internship.
MCAA will follow-up with each company and intern to ensure the process and overall internship was successful.
MCAAGreatFutures.org gives members access to student profiles and resumes. The profiles are searchable by university, desired location, and even a specific skill set, like BIM or AutoCAD. A keyword filter allows users to zero in on students who fit the bill.
Not finding a match? Try reaching out to our 60 MCAA Student Chapters. The chapter advisors are a great resource to help find the right person. And, MCAA members have exclusive access to post job openings on our job board.
Help build our industry’s GreatFuture – apply for a grant!
