Alston & Bird have released their May 8 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 can now download the 2020 edition of MCAA’s Change Orders, Productivity, Overtime—A Primer for the Construction Industry. The revamped resource provides guidance to contractors that are looking to measure the impact that delays, PPE and manpower limitations have on the construction sites that they are working on. The guide helps contractors identify and quantify activities before and after the start of the pandemic in order to build change orders correctly.
As the guide’s lead author, Paul L. Stynchcomb, CCM, PSP, CFCC of Vero Construction Consultants Corp. puts it, “One way that you are going to have to address this issue is measuring time impacts. So the starting point is to measure any schedule time impacts as of the commencement of the impacts of the pandemic on your project site. That means you need to identify any pre-existing delay conditions.”
As an additional resource, Paul Stynchcomb was joined by Douglas Patin and William Ibbs from the Ibbs Consulting Group on April 15, 2020 to address the Construction Management Consequences of the Coronavirus and Legal Responses. MCAA members can review the webinar for free at any time.
As some of the most labor-intensive trades on any project, mechanical, plumbing, electrical and sheet metal contractors are intently interested in project planning, activity sequencing, timing of the work and efficient crew flows. In a new chapter for the 2020 edition of MCAA’s Change Orders, Productivity, Overtime—A Primer for the Construction Industry, lead author Paul L. Stynchcomb, CCM, PSP, CFCC of Vero Construction Consultants Corp. discusses the essential concept of sharing the critical path method (CPM) schedule in its native form between all of the major trades on a construction project as a tool for enhancing cooperation, profitability and timeliness.
Only the prime or construction manager’s CPM schedule for the entire project scope of work provides the full picture that will enable these contractors to deliver projects to the benefit of all parties, Stynchcomb posits. He notes that printouts, bar chart graphics and PDF files of the CPM schedule are a poor substitute since they provide only a snapshot of the plan at a specific point in time.
Shared access to the native CPM schedule files adds transparency to the construction management and scheduling process, which is key to effectiveness on today’s complex and challenging construction projects. In most cases, projects that have a cooperative and interactive management style are more profitable and timely, and efficiently, completed. This means bottom line benefits for all involved.
Lawrence M. Prosen, Esquire of Kilpatrick Townsend & Stockton, LLP provided the case citations and some general commentary contained in some sections of the chapter.
This latest chapter, like the others in the publication, was peer reviewed by a panel of industry professionals. Peer review was performed by Robert Beck, President/CEO of John W. Danforth Company in Tonawanda, NY; Rick Freeman, Executive Vice President, Southern Insulation, Inc. in Hyattsville, MD; Brian Helm, President of The Helm Group in Freeport, IL; and Denis St. Pierre, Executive Vice President & COO of Alterman in Austin, TX.
The publication’s full contents have once again received the endorsements of the Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA) and the National Electrical Contractors Association (NECA).
The American Subcontractors Association (ASA) has also renewed its full support for the contents of this publication as applicable to their particular trades.
In addition to the new chapter, the publication assists labor intensive contractors and subcontractors in concepts of proactive project management such as CPM scheduling, labor planning and productivity tracking, change management and settlement negotiations, dispute resolution, claims avoidance and, if necessary, claims preparation and presentation.
The object of this publication is to sensitize construction professionals of all trades to enable the early identification of obstacles to a successful project, and to proactively manage such obstacles to mitigate or eliminate their impact to the bottom line, to the benefit of all of the project participants.
MCAA members can download the publication free as a benefit of membership. Printed books are also available for purchase at a discounted rate.
If you have questions about the book, contact Adrienne Breedlove.
“Grace period” extended and SBA commits to new guidance on eligibility – FAQ 43 was released May 5th, indicating that the May 7th deadline for companies to return PPP funds without penalty if they have determined they are not eligible has been extended to May 14th. The big news is that the SBA committed to providing “additional guidance” on how it will review the certifications made in the application prior to May 14, 2020. This could mean that the SBA will further clarify (and possibly narrow) the scope of what they meant by the concept of “economic uncertainty.” This is something that borrowers will need to closely consider.
Clarification on Foreign Affiliates – FAQ 44 was released May 5th and clarified that, for the 500 employee limit, the employees of foreign affiliates need to be included. This is important because many companies were under the impression that only US employees were considered when it came to affiliation guidance. Thus, if a company had a foreign subsidiary, those employees will now need to be included for the purpose of the 500 FTE headcount limitation. Keep in mind, the 500 employee limit considers ALL employees as a full employee. So a part time employee is considered 1 person for the purpose of this calculation. This may require some companies to re-evaluate their eligibility.
Reminder Section: (what should I be doing):
Alston & Bird have released their May 6 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.
Cash is the lifeblood of any business. In good times, cash management may slip to the back burner, but with the current pandemic and companies delaying payments, now is not the time to be casual about your money. Join NEI and UA training instructor, Kathy Crosby, to learn how to keep delayed payments from getting out of control, protecting your rights, and how to measure your company’s cash flow in order to better manage it. Attendees will learn about leveraging relationships with vendors, subcontractors, banks and sureties, as well as how to reduce the risk of delayed cash when it comes to retention, change orders, T&M work and billing issues.
When: Tuesday, May 12 at 1:00 p.m. – 2:00 p.m. EDT
As the number of COVID-19 patients in Maryland has grown, so has the need for additional patient care facilities throughout the region. CRW Mechanical and W.E. Bowers, both members of the MCA of Metropolitan Washington, Inc., teamed up to meet that need by participating in the construction of several temporary patient care facilities.
The companies’ involvement began when Leonard Murphy of CRW Mechanical was contacted by the Verified Gas System on March 26. The request: produce and install essential headwalls and medical gas containers needed to supply medical gas for the temporary structures. The headwalls contribute to the use of medical air, oxygen and vacuum systems and provide power and data connections to serve patients and their caregivers.
Leonard Murphy and CRW Mechanical’s President, Rudy Ford, understood the immediate need and the strict timeline. They contacted Kenny Colburn, Executive Vice President at W.E. Bowers. With collaboration and coordination from concept to fabrication, the teams completed the first fully functional tent structure at Fort Washington in Prince George’s County, MD by April 1.
“Our group of contractors has been working together 24/7 to meet the deadline of the project. A huge thanks to the suppliers who have helped us reach our deadline. Everyone’s really come together to make this happen. I can’t say enough great things about the work we are all doing. We’re all in this together.”
MCAA thanks CRW Mechanical and W.E. Bowers for their collaboration to better serve patients with COVID-19. We will get through this together.
Business as usual is not a phrase we are likely to hear again any time soon – if ever. HVACR and plumbing service contractors need to prepare now in order to remain viable and successful moving forward. Contractors will need to understand their customer’s new concerns and challenges as well as your changing role in ensuring the safe and proper operations of their facilities’ systems. A panel of MSCA leaders led an open and enlightening discussion on the “new normal” and how best to prepare your service company for the unchartered road ahead. They shared unique strategies and forward-thinking ideas that are being implemented now.
Additional Resources:
This webinar was recorded Tuesday, May 5, 2020.
Below are two recently issued Frequently Asked Questions published by the Small Business Administration and Treasury Department on eligibility for Paycheck Protection Program loans for public and privately owned companies and eligibility for firms that have access to other adequate sources of liquidity. The after-the-fact guidance issued on April 24 and April 28 is causing some degree of confusion among firms that have already applied for and been granted PPP loans before publication of this criteria.
Following the FAQs below is some discussion of the issue by the national accounting firm Withum. MCAA is not providing legal or accounting counsel on this issue and is advising member firms of this issue so they can discuss with their legal and accounting consultants.
31. Question: Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?
Answer: In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith. (11)
11 Question 31 published April 23, 2020.
37. Question: Do businesses owned by private companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?
Answer: See response to FAQ #31. (14)
14 Question 37 published April 28, 2020.
Analysis From Withum:
FAQ 31 was a reference to the recent (and somewhat controversial) FAQ asking if companies owned by “large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?” This FAQ is interesting, because FAQ 31 didn’t specifically include or exclude private companies from its question, so it is unclear why the SBA decided that it needed to take this step and offer even further clarification. Also this FAQ does not seem to answer its own question, it just refers to another question’s answer…which doesn’t really address the question either….very strange. One could surmise that the SBA may be trying to narrow in on a point of view regarding PE/VC investors, but even that doesn’t make a lot of sense given the fact that in the 3rd Interim Final Ruling (IFR) an FAQ specifically states that portfolio companies of PE funds are in fact eligible as long as they meet the affiliation guidance. Your guess on all of this is as good as ours.
In the end, FAQs like this don’t really do much to create clarity, and certainly raise concerns from the middle market who are seeking to act in good faith. Our recommendation ultimately remains the same – document your position and the circumstances that existed at the time you applied for the loan, if you are unsure, certainly consider consulting counsel. We also recommend documenting the uncertainties that existed within your board minutes (if you keep them) so it is clear as to what the facts were, and what was known or knowable at the time you applied.
Analysis of FAQ #31 regarding eligibility: Last week we provided a high level breakdown of a somewhat controversial FAQ that seemed to target PPP eligibly for public companies and businesses “owned by large companies”. This FAQ created some anxiety amongst PE and VC backed entities because it seemed to imply that the goalposts may have been moved for them in terms of considering if they can apply. We found a great article that breaks down this FAQ even further in case you wanted to dig in. In the end our recommendations from last week have not changed, documenting your view on why you are eligible and why you believe you have business uncertainty remains important, we don’t know that this FAQ created any major changes for the typical applicant, but certainly may have been a message to Wall Street.
We continue to explore this issue and will provide more guidance as it becomes available.
Using an effective hand sanitizer is one of the most important things everyone can do to help prevent the spread of COVID-19. This is especially true on construction jobsites and in mechanical service areas where there is no running water. To be effective against COVID-19, the CDC states that hand sanitizers must contain at least 70% alcohol. Since alcohol is flammable, we must be extremely careful when using it. Many things on a jobsite can serve as an ignition source, such as a lighter, a welding torch striker, welding and grinding sparks, even static electricity.
Enginuity, LLC presented Matthew Lawrence and Andrew Clancy with MCAA student internship grants at the start of their internships. The grants, which are funded by the John R. Gentille Foundation, will help subsidize the interns’ expenses while they gain valuable work experience this summer.
Matthew Lawrence is a sophomore at ACE Tech School, where he is studying Marketing. This is his second year as an Enginuity, LLC intern. He is working as a service department sales assistant, writing proposals and coordinating service for clients as well as coordinating with vendors and subcontractors. He also visits job sites to collect information for estimating, processing submittals and approving invoices.
Andrew Clancy is a freshman at Messiah College studying Mechanical Engineering. He will be working as a project assistant, focusing on submittal processing, coordinating with subcontractors and vendors, productivity tracking and material take-off.
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!
Alston & Bird have released their May 4 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.
XOi Technologies’ cloud-based mobile app takes the manual work out of getting critical information from the field into the hands of those who need it, which is helping Havtech streamline communication and improve efficiency. Havtech now has full transparency with their customers at every stage of the contract—from quote to completed work.
Visit the Smart Solutions Case Studies area of our website! You’ll see how other mechanical contractors found their win-win with productivity-enhancing and cost-saving applications from members of MCAA’s Manufacturer/Supplier Council.
Plus, you’ll find tips and ideas on other ways you and your company can save money and enhance your productivity.
Arden Engineering Constructors recently completed work on two COVID-19 field hospitals which add 935 patient beds for the anticipated COVID-19 surge in Rhode Island. The project had two 12-hour shifts running seven days a week from the time it began on April 6 until completion on April 18.
Arden provided and installed all of the HVAC piping, plumbing, ductwork, and medical gas piping for the project. Their in-house fabrication shop created finished bathroom piping systems ready for installation.
Unique Metal Works, an Arden Building Company, fabricated and installed approximately 6,000 feet of spiral exhaust ductwork with connection to plenum to provide “negative air flow” and prevent the escape of possible contamination. Their ability to do this provided both cost efficiencies and greater quality control for the project.
Earthwise Energy Technologies of Arden Building Companies, installed the monitoring and alarming for the negative pressure exhaust systems in the patient and pharmacy areas. The systems are monitored remotely using a graphic interface that allows needed adjustments to be made at any time, from anywhere.
MCAA thanks Arden Engineering Constructors for their efforts in support of healthcare providers, and for providing alternative care facilities for COVID-19 patients.
Alston & Bird have released their May 1 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.
The full-featured digital version of our Membership Directory & Buyer’s Guide enhances the look and feel of our directory with digital-only benefits to help you:
MCAA’s Membership Directory & Buyer’s Guide is free as a member benefit. Printed directories will be sent to members in the next few weeks.
Have updates? Please share! Contact Jan Grillo for assistance.
Alston & Bird has published their April 29 edition of their A&B 50-State Openings Tracker, along with details and links for quick reference.
Get prepared to reopen America with training and certification in the ASSE 12060 Water Quality Program for Contractors and Tradespeople. This training and certification opportunity is ideal for contractors whose companies perform plumbing service, HVAC service, and sprinkler fitting. Key elements of the class are Implementing the CDC Toolkit, Recommissioning of All Buildings, Risk Assessment of All Systems, and Sampling Procedures. This class emphasizes water quality, however, air quality will also be addressed. The training session will be presented on Tuesday, May 19, 2020 from 11:00 a.m. to 4:00 p.m. EST. In order to allow adequate time for shipping the necessary class materials, enrollment ends on Thursday, May 7, 2020. Class size is limited, and expected to fill up quickly.
The webinar fees include:
ENROLL NOW
IMPORTANT: Be sure to include your complete street address. The handbook will be shipped to you as soon as you enroll
Alston & Bird have released their April 29 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.
This educational video provides users with an overview of the next generation of WebLEM — WebLEM+Plus. In this video, you will learn how labor units are created for both the Component and the Work Activity Method (WAM) and what factors are considered in creating labor units. The video highlights the new and enhanced features of WebLEM+Plus. You will learn how to navigate the updated software, how to access Component and Work Activity labor units and how to locate information associated with each product. The video will also walk you through a detailed example of how to use the Work Activity Method (WAM). Included in the recording is an overview of the work our industry’s manufacturers and content providers are doing to connect their product data and drawing content to the WebLEM+Plus. Welcome to WebLEM+Plus, the next generation of the industry standard for estimating labor hours.
MCAA’s long-time partner Milwaukee Tool has updated their COVID-19 Resource Guide to include additional content on best practices for remote meetings, eSERVICE tool repairs and digital training resources. The guide addresses tool cleaning, operations protocols, digital training, shipping and inventory updates, Milwaukee Tool’s #TOGETHERweSTAND campaign and how to stay in contact with Milwaukee Tool. The guide also includes links to sample documents, including a Health Screening Planning Form, Health Pre-Screening Questionnaire and Potential Considerations for Documenting Procedures. MCAA thanks Milwaukee Tool for the long-standing partnership, and for sharing these resources with MCAA.
