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Saunders Companies: Foundation of Central New York

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2015

Christopher Stojcev315-480-5838 [email protected]

CONSTRUCTION CONTRACTOR 2015 SUMMER∙ 1

Saunders Companies: Foundation of Central New York 3

Protecting Your Rights to Get Paid - Part 2 10

Working in the Summer Heat 11

Buying vs. Renting: Factors to Consider 13

Tech Talk 14

Employee Expense Reimbursement Plans 16

Meet The SBE Team 17

Why Key Performance Indicators? (KPI) 21

Syracuse Builders Exchange 2015: Scholarship Award Winners 23

Syracuse Builders Exchange 2015: Craftsmanship Awards 24

2 ∙ SUMMER 2015 CONSTRUCTION CONTRACTOR

In addition to the many construction industry related services the Syracuse Builders Exchange provides to construction employers and the industry in general, the Builders Exchange also provides awards programs each year. I’m pleased to report the tradition of honoring outstanding individuals will continue in 2015 and beyond.

Historically the Builders Exchange has honored exceptional craftsmanship on regional construction projects. Honorees are recognized at the annual Craftsmanship Awards celebration which will take place this November at the Century Club in Syracuse. Nominations are being accepted through September 30th for projects completed throughout central New York’s 16 county region during the 2014 calendar year. Companies are encouraged to submit their nominations via the Builders Exchange’s web site at www.syrabex.com.

Since 1998, the Syracuse Builders Exchange has provided dependent children of employees of member companies with access to our scholarship program. This program has awarded over $150,000 in scholarships to approximately 100 students since inception. This year the Builders Exchange will be awarding $17,500 in scholarships to ten dependent children of Builders Exchange members.

In this edition of Construction Contractor, you will learn more about these two programs which are unique to the Syracuse Builders Exchange. Many thanks to those staff and Board members who devote so much time and effort in assuring the success of each of these two special programs.

Giving back to the construction industry and our membership is an important principle, which the Builders Exchange takes seriously. The commitment to our membership extends beyond services which enhance the competitiveness and efficiency of member companies. Identifying and recognizing personal excellence on a project or achievements in an academic environment is essential to adhering to our core values as a not-for-profit trade association.

Yours truly,

Earl R. Hall, Executive DirectorSYRACUSE BUILDERS EXCHANGE

Co-Publisher - Michael T. BrigandiCo-Publisher - Richard K. KeeneArt Director - John M. Paone

SBE Board of Directors:Karen Bellows Bellows Construction SpecialtiesLisa Brownson Safety Source ConsultantsEmmett Burns III Burns Bros. Concrete Construction Corp.Sam Conley Whitacre Engineering Co.Michael Cowden Murnane Building Contractors, Inc.Karl Engelbrecht Burns Bros.Linda Fisher Diamond & Thiel Construction Co., Inc.Edward Grabowski St. Joseph’s Hospital Health CenterRobert Henderson Henderson-Johnson Co., Inc.Matthew Irish Irish-Millar Construction, Inc.Richard Law Robert H. Law, Inc.Michael Maselli Josall Syracuse, Inc.Richard Raulli Raulli & Sons, Inc.David Rebhahn David A. Rebhahn ArchitectJohn Schalk Edward Schalk & Son, Inc.Paul Schneid Schneid Construction Co., Inc.James D Taylor, III J.D. Taylor Construction Corp.James Taylor AHC EnterpriseRichard Viau Viau Construction Corp.Craig Zinserling CRAL Contracting, Inc.

Foundation of Central New York Saunders reliability, reputation steeped in rich history

Martha E. Conway

CONSTRUCTION CONTRACTOR 2015 SUMMER ∙

Saunders Companies played a key role in the Lower Harbor Brook project- a major municipal stormwater project in Syracuse.

In 1891, the Dalton Gang executed its first great train robbery, James Naismith invented basketball, Golden Gate Park received its first resident buffalo, the Penalty Spot Kick rule in Association Football was born, Cy Young pitched the first game played in Cleveland’s League Park, the first gasoline-powered car debuted in Springfield, Mass., and William Fletcher Saunders moved his family from Homer, New York, to West Onondaga Street in Syracuse, where he started a livery service.

“Onondaga County was already booming,” said Saunders Companies owner Tracy Saunders of the business and industrial nature of Syracuse. “Three major retailers – Dey Brothers, Edwards and Witherall’s had already established themselves downtown. The Erie Canal had brought commerce to the center of the city. Roads were being built. Progress was being made.”

Saunders said that more than a century ago, no one could have known that the livery stable established by

William F. Saunders would grow into one of the best-known commercial and residential ready-mix concrete and aggregate companies in Central New York.“Horse-drawn carriage, coach, coup and livery transporting products and people propelled William F. into the company’s first stage of prosperity,” Saunders said. “At the turn of the century, he moved into the sand and gravel business with his three sons.”With Wallace W., Cass E. and Sherman V. [Sr.], the livery company metamorphosed into W.F. Saunders and Sons.


William F. Saunders would grow into one of the best-known commercial and residential ready-mix concrete and aggregate companies in Central New York.

“Horse-drawn carriage, coach, coup and livery transporting products and people propelled William F. into the company’s first stage of prosperity,” Saunders said. “At the turn of the century, he moved into the sand and gravel business with his three sons.”

With Wallace W., Cass E. and Sherman V. [Sr.], the livery company metamorphosed into W.F. Saunders and Sons. According to Saunders, the company expanded into mining and hauling in 1921, diversifying from the sale and transport of sand and gravel and moving to its current headquarters on Route 80 in Nedrow, south of Syracuse.

“By the 1940s, due to the boom of post-World War II new home construction, they moved into the ready-mix concrete business,” Saunders said. “By this time, Sherman V. Saunders had taken over the majority of the family business, along with his son, Sherman V. Saunders, Jr., who, along with Sherman Jr.’s son Michael, took the helm after Sherman Sr.’s retirement.”

Sherman Jr. worked until passing in 2003, as did Michael, who died in 2013; today, Tracy Saunders manages all aspects of the business.

In addition to 13 satellite concrete plants located in Nedrow, Marcellus, Cortland, Ithaca, Canastota, Whitney Point, Bainbridge, Greene, Norwich, Binghamton, Central Square and Oneida, Saunders said Marcellus provides the company’s high-quality limestone, as well as sand and gravel.

Saunders Companies also maintains sand and gravel operations in South Onondaga, Lisle and Greene.

“Our innovative crushing and plant designs have allowed Saunders to grow into an industry leader, with our primary goal of producing quality aggregates with environmental awareness,” Saunders said.

Over its rich history, Saunders has evolved into one of the largest ready-mix producers in Central New York.

“We have built strong business relationships and have many loyal customers and associates, recognizing that our customers’ success is vital to our own success,” Saunders said. “We continue to strive for excellent customer service and providing the best quality product.

“Our customers recognize our innovations, and we let the final product speak for itself. It’s important that we dedicate ourselves to our products, quality and customers in order for our customers to be dedicated to our business. Those dedicated customers, associates and employees have contributed to our success over the past 124 years and allowed us to become a leader in the industry today.”

Saunders sales staff agree and are proud of the product they provide.

“We have grown over the years by concentrating on providing quality concrete,” said sales representative John Feyerabend. “We do not skimp on our mix designs to save a little on costs, because we don’t want to develop a reputation of sending concrete that doesn’t meet strength requirements or is hard for the contractor to place.”

Feyerabend, who is part of a four-member sales team made up of sales manager Gary Markinson and fellow representatives Mike Crowley and John Wehrle, boast more than 80 combined years at Saunders. He said there are ways to cut corners with things like cheap fly ash or leaving out admixtures.

“This doesn’t make good business sense for us, as we rely on having repeat business from contractors and property owners,” Feyerabend said. “That’s only going to happen if they are happy with their finished product and telling other people about us. We will not take chances because it is human nature that a customer will tell everyone they know about a bad experience, which negates the dozens of other good pours we may provide somewhere.”

Experience makes the difference, he said.

“Our experience and employee track record gives our customers peace of mind that Saunders is always trying to do what is right for the customer,” Feyerabend said. “Our three dispatchers also have similar service time with the company, which all demonstrates it is a good company to work for.”

Investment in their fleet and keeping pace with cutting-edge trends in the industry has helped fuel Saunders’ growth, Feyerabend said.

“In the line of cutting-edge concrete mixes, Saunders has provided quite a few over the years,” Feyerabend said. “We have recently developed what we believe may have been the first 10,000PSI strength concrete provided in Central New York.” Typical concrete is in the 3,000PSI to 5,000PSI range, he said.

“Although this has been done in some major metropolitan areas, an engineer told us we would have trouble doing this strong a mix based on the aggregates native to this area,” Feyerabend said. “Matt Bednarski, through trial-and-error, developed a mix that tested more than 10,000PSI strength by an independent lab in 14 days, which was two weeks earlier than the 28-day requirement of the specification.”

Feyerabend and Markinson say they believe they have the finest quality control department of any concrete supplier in Upstate New York. Feyerabend said quality control manager Bednarski has been with Saunders for more than 30 years and is recognized by the state Department of Transportation, local architects and engineers for his expertise in concrete and his development of concrete mix designs.

“When Solomon Cady Hollister, Dean of the Cornell School of Engineering, spoke to the faculty in 1934, he said that if it was possible to make 10,000 psi concrete, it would revolutionize the world,” Markinson said. “You could build taller buildings and make smaller-sized columns. During that time, it was only possible to make concrete that came up to 3,000PSI or 4,000PSI at best. Structures were designed around these concrete strengths. It wasn’t until the early 1970s that higher-strength concrete started to be made in laboratories at Cornell University.”

The project to develop that super-strength concrete project was launched by collaboration between the professionals at Saunders and Dr. Ken Hover of Cornell University’s engineering program, thanks to a successful grant application. The quest? To bring to life Hollister’s dream of that 10,000PSI concrete.

“Dr. Ken Hover, along with two other researchers, received a grant from the National Science Foundation to develop super-strength concrete and study the effects of shrinkage over time in high-strength and lightweight concretes,” Markinson said. “High-strength concrete wasn’t being done much around the world, and Cornell University, a leading engineering university, set out to prove it could be

done not only in the lab, but in the field. Our Ithaca plant was the proving ground.

“Ken told me that Saunders helped him at Cornell University to make trial batches of high-strength concrete in the early to mid-1980s, which was groundbreaking. The work confirmed the benefits of being able to make high-strength, 12,000-plus PSI concrete not only in the laboratory, but also in the field. This was done in our concrete plant in Ithaca, which we still run and which still serves Cornell University’s concrete needs today.”

Cornell University also set out to research the shrinkage characteristics of this high-strength concrete.

Markinson said Hover and his team called on the services of Saunders Concrete to help make these extremely high-compressive-strength concrete mixes that had not had much testing or use anywhere around the globe.

“The goal was to make 12,000PSI concrete, and they surpassed that, making 14,000PSI concrete with our help,” Markinson said of the work performed under the grant. “This was groundbreaking testing and manufacturing of concrete at the highest strengths seen to that date. Ken said the collaboration between Cornell and Saunders was tremendous and is what helped make this research possible. Now this type of concrete is widely used in metropolitan areas around the world to build the tallest buildings, and Saunders Concrete helped Cornell make it happen.”

Hover wrote a paper on the project, which earned the 1993 American Concrete Institute Structural Research Award for its groundbreaking research results.

Saunders also worked with the DOT to develop a 12-hour accelerated mix.

“This concrete has been used in high-traffic roadway areas, such as Thruway toll booths and Interstate bridges or ramps, where they couldn’t afford to be shut down for long,” Feyerabend said. “This accelerated concrete can be driven on in 12 hours or less.”

Saunders provided a ‘heavyweight’ concrete for the radiation walls at SUNY Upstate Medical University’s cancer center in Syracuse.

“This required the use of iron ore aggregates to be included in the mix, which boosted the concrete weight by two-thirds over typical mixes,” he said. “It’s a very dense end product.”

Feyerabend said that everyone in the industry does ‘lightweight’ concrete, but said that Saunders does an incredible volume of the material and has developed a special mix over the years; he said it has performed very well. Lightweight concrete is used in placements such as elevated slabs where the structural weight is a concern.

Caring for their ‘hardware’ is of utmost importance, also.

“An example of our dedication to our fleet is bringing conveyor trucks to Central New York, and then purchasing more front-discharge ready-mix trucks when we saw there

could be a demand for these,” Feyerabend said. “In more recent times, we have followed the technical revolution, starting first with computer batching, and then setting up a computerized central dispatch facility with GPS capability that can track and contact all vehicles, which allows us to be more efficient with deliveries.”

In addition, by replacing vehicles and equipment on an aggressive rotation, Saunders secures its reputation of reliability by drastically reducing time lost to equipment failures or breakdown.

He said by being able to “see” everything in central dispatch, trucks can be moved from plant to plant and help from a nearby plant can be hastily procured through dispatch of another truck if there is a delay in the field.Feyerabend added to Tracy’s company history by adding that Saunders has been environmentally conscious for a long time.

“We worked with the Marcellus Central School District on ‘Project Green Eyes,’ which won a prestigious national award back in 1996,” he said. “More recently, we have found ways to increase points for contractors building LEED-certified projects to access regionally located recycled cementitious materials.”

Project Green Eyes was a pioneering reclamation project that involved the restoration of mined areas.

Saunders hasn’t let any grass grow under their feet – keeping abreast of trends and needs in the industry is vital to their continued success.

“The concrete industry has changed drastically in just the past 10 to 15 years,” Feyerabend said. “In years past, we would just be asked for a specific strength mix, and backup was seldom required. Now, every commercial job seems to have very particular requirements in the specifications, and concrete mixes often have to be developed or tailored to that spec.”

He said this has included the use of many new or updated admixtures.

“There are standard admixtures that have gone in many mixes over the years, like air-entrainment, water reducers or synthetic fibers,” Feyerabend said. “There are others that have been around a while, but are only sometimes used, like superplasticizers, corrosion inhibitors, shrinkage reducers, steel or blended – steel and synthetic blend – fibers, and accelerating admixtures – often used in the hot weather to keep the concrete from setting up too early.”

In addition, Feyerabend said Saunders offers new and exciting admixtures, such as “workability admixtures” that hold all the properties of concrete for a certain length of time, which helps reduce cracking, helps with water-tightness and durability; “vapor-retarding admixtures,” which reduces the time a slab needs to be cured, allowing the contractor to place tile or other flooring finishes onto the concrete in record time, saving time – and therefore money – for contractors and customers, alike; “viscosity-modifying admixtures” that help control bleeding, segregation and stability; and “integral crystalline waterproofing” that not only seals the surface of the concrete like traditional waterproofing, but also fills in the pores and capillaries of the concrete. If the concrete gets a hairline crack and water enters, it will rehydrate and reseal the infiltration.

“We have also invested in a liquid color machine,” Feyerabend said. “We have formulas that can match very

accurately more than 600 different colors from the major color pigmentations. Often, if we don’t have the formula, we can track it down – very much like they can do with a chip at the paint store. The advantage of adding color to a truck when batching instead of putting it on at the site is that the color is much more uniform from start to finish.”

Saunders is an active member of the American Concrete Institute, New York Material Association, Associated Builders and Contractors, National Ready Mix Concrete Association and the American Concrete Pavement Association.

“We are active with all of these groups to better understand the needs of construction team members, including contractors, engineers, architects and business owners,” Markinson said.

Saunders serves small and commercial contractors of all sizes, municipalities and residential property owners.

PROJECT HIGHLIGHTS SUNY Upstate Medical University Cancer Center – Saunders made a ‘heavyweight concrete mix’ out of iron ore, which was used to form walls of the radiation rooms. The process is unusual and difficult, due to the increased weight of the material. The same work was performed for Cornell University’s Wilson Nuclear Reactor Laboratory.

Saunders is in the process of making 10,000PSI concrete for the amphitheater project on Onondaga Lake. This is a special design project; typically, concrete is mixed to between 3,000PSI and 5,000PSI.

Saunders collaborated with Cornell University in assisting New York State to develop “HP” concrete – a high-strength, longer-life product for use on bridge decking.

Saunders has provided services to all local hospitals and universities – the Veterans’ Administration Medical Center Spinal Cord Injury Wing, Golisano Children’s Hospital, Institute of Human Performance, St. Joseph’s surgical wing and emergency room addition, Cornell University, Colgate University, Syracuse University’s Newhouse School and College of Law, and SUNY Cortland – to name a few; they also completed the Clinton Square Ice Rink with green coloring.

HONORS AND AWARDSACI CNY 2014

Concrete Gold Medal Winner: Dineen Hall, Syracuse University College of Law

Concrete Silver Medal Winner: St. Joseph’s Hospital Masterplan Phase 2b

Concrete Award of Merit Winner: Syracuse University Football Program Renovations &

Additions, Plaza Recognition Wall

ACI CNY 2013Concrete Gold Medal Winner: Exit 33 – Turning

Stone Resort & Casino

Concrete Silver Medal Winner: Cayuga Medical Center – Surgical Services Addition

Concrete Bronze Medal Winner: Syracuse University Sadler Dining Hall Expansion &

Renovation

ACI CNY 2012Concrete Bronze Medal Winner: Veterans’ Administration Medical Center Spinal Cord

Injury/Disease Center Addition

ACI CNY 2011Concrete Gold Medal Winner: Cornell University

Herbert F. Johnson Museum of Art

ACI CNY 2010Concrete Gold Medal Winner: Syracuse

University Ernie Davis Hall

Concrete Silver Medal Winner: Syracuse University Center of Excellence

ACI CNY 2009Concrete Silver Medal Winner: Ithaca College

Classroom Link

Concrete Bronze Medal Winner: Syracuse University Carmelo K. Anthony

Basketball Practice Facility

ACI CNY 2008Concrete Silver Medal Winner: Cornell University

Life Sciences Technology Building


William F. Saunders would grow into one of the best-known commercial and residential ready-mix concrete and aggregate companies in Central New York.

“Horse-drawn carriage, coach, coup and livery transporting products and people propelled William F. into the company’s first stage of prosperity,” Saunders said. “At the turn of the century, he moved into the sand and gravel business with his three sons.”

With Wallace W., Cass E. and Sherman V. [Sr.], the livery company metamorphosed into W.F. Saunders and Sons. According to Saunders, the company expanded into mining and hauling in 1921, diversifying from the sale and transport of sand and gravel and moving to its current headquarters on Route 80 in Nedrow, south of Syracuse.

“By the 1940s, due to the boom of post-World War II new home construction, they moved into the ready-mix concrete business,” Saunders said. “By this time, Sherman V. Saunders had taken over the majority of the family business, along with his son, Sherman V. Saunders, Jr., who, along with Sherman Jr.’s son Michael, took the helm after his Sherman Sr.’s retirement.”

Sherman Jr. worked until passing in 2003, as did Michael, who died in 2013; today, Tracy Saunders manages all aspects of the business.

In addition to 13 satellite concrete plants located in Nedrow, Marcellus, Cortland, Ithaca, Canastota, Whitney Point, Bainbridge, Greene, Norwich, Binghamton, Central Square and Oneida, Saunders said Marcellus provides the company’s high-quality limestone, as well as sand and gravel. Saunders Companies also maintains sand and gravel operations in South Onondaga, Lisle and Greene.

“Our innovative crushing and plant designs have allowed Saunders to grow into an industry leader, with our primary

goal of producing quality aggregates with environmental awareness,” Saunders said.

Over its rich history, Saunders has evolved into one of the largest ready-mix producers in Central New York.

“We have built strong business relationships and have many loyal customers and associates, recognizing that our customers’ success is vital to our own success,” Saunders said. “We continue to strive for excellent customer service and providing the best quality product.

“Our customers recognize our innovations, and we let the final product speak for itself. It’s important that we dedicate ourselves to our products, quality and customers in order for our customers to be dedicated to our business. Those dedicated customers, associates and employees have contributed to our success over the past 124 years and allowed us to become a leader in the industry today.”

Saunders sales staff agree and are proud of the product they provide.

“We have grown over the years by concentrating on providing quality concrete,” said sales representative John Feyerabend. “We do not skimp on our mix designs to save a little on costs, because we don’t want to develop a reputation of sending concrete that doesn’t meet strength requirements or is hard for the contractor to place.”

Feyerabend, who is part of a four-member sales team made up of sales manager Gary Markinson and fellow representatives Mike Crowley and John Wehrle, boast more than 80 combined years at Saunders. He said there are ways to cut corners with things like cheap fly ash or leaving out admixtures.

“This doesn’t make good business sense for us, as we rely on having repeat business from contractors and property owners,” Feyerabend said. “That’s only going to happen if they are happy with their finished product and telling other people about us. We will not take chances because it is human nature that a customer will tell everyone they know about a bad experience, which negates the dozens of other good pours we may provide somewhere.”

Experience makes the difference, he said.

“Our experience and employee track record gives our customers peace of mind that Saunders is always trying to do what is right for the customer,” Feyerabend said. “Our three dispatchers also have similar service time with the company, which all demonstrates it is a good company to work for.”

Investment in their fleet and keeping pace with cutting-edge trends in the industry has helped fuel Saunders’ growth, Feyerabend said.

“In the line of cutting-edge concrete mixes, Saunders has provided quite a few over the years,” Feyerabend said. “We have recently developed what we believe may have been the first 10,000PSI strength concrete provided in Central New York.” Typical concrete is in the 3,000PSI to 5,000PSI range, he said.

“Although this has been done in some major metropolitan areas, an engineer told us we would have trouble doing this strong a mix based on the aggregates native to this area,” Feyerabend said. “Matt Bednarski, through trial-and-error, developed a mix that tested more than 10,000PSI strength by an independent lab in 14 days, which was two weeks earlier than the 28-day requirement of the specification.”

Feyerabend and Markinson say they believe they have the finest quality control department of any concrete supplier in Upstate New York. Feyerabend said quality control manager Bednarski has been with Saunders for more than 30 years and is recognized by the state Department of Transportation, local architects and engineers for his expertise in concrete and his development of concrete mix designs.

“When Solomon Cady Hollister, Dean of the Cornell School of Engineering, spoke to the faculty in 1934, he said that if it was possible to make 10,000PSI concrete, it would revolutionize the world,” Markinson said. “You could build taller buildings and make smaller-sized columns. During that time, it was only possible to make concrete that came up to 3,000PSI or 4,000PSI at best. Structures were designed around these concrete strengths. It wasn’t until the early 1970s that higher-strength concrete started to be made in laboratories at Cornell University.”

The project to develop that super-strength concrete project was launched by collaboration between the professionals at Saunders and Dr. Ken Hover of Cornell University’s engineering program, thanks to a successful grant application. The quest? To bring to life Hollister’s dream of that 10,000PSI concrete.

“Dr. Ken Hover, along with two other researchers, received a grant from the National Science Foundation to develop super-strength concrete and study the effects of shrinkage over time in high-strength and lightweight concretes,” Markinson said. “High-strength concrete wasn’t being done much around the world, and Cornell University, a leading engineering university, set out to prove it could be

done not only in the lab, but in the field. Our Ithaca plant was the proving ground.

“Ken told me that Saunders helped him at Cornell University to make trial batches of high-strength concrete in the early to mid-1980s, which was groundbreaking. The work confirmed the benefits of being able to make high-strength, 12,000-plus PSI concrete not only in the laboratory, but also in the field. This was done in our concrete plant in Ithaca, which we still run and which still serves Cornell University’s concrete needs today.”

Cornell University also set out to research the shrinkage characteristics of this high-strength concrete.

Markinson said Hover and his team called on the services of Saunders Concrete to help make these extremely high-compressive-strength concrete mixes that had not had much testing or use anywhere around the globe.

“The goal was to make 12,000PSI concrete, and they surpassed that, making 14,000PSI concrete with our help,” Markinson said of the work performed under the grant. “This was groundbreaking testing and manufacturing of concrete at the highest strengths seen to that date. Ken said the collaboration between Cornell and Saunders was tremendous and is what helped make this research possible. Now this type of concrete is widely used in metropolitan areas around the world to build the tallest buildings, and Saunders Concrete helped Cornell make it happen.”

Hover wrote a paper on the project, which earned the 1993 American Concrete Institute Structural Research Award for its groundbreaking research results.

Saunders also worked with the DOT to develop a 12-hour accelerated mix.“This concrete has been used in high-traffic roadway areas, such as Thruway toll booths and Interstate bridges or ramps, where they couldn’t afford to be shut down for long,” Feyerabend said. “This accelerated concrete can be driven on in 12 hours or less.”Saunders provided a ‘heavyweight’ concrete for the radiation walls at SUNY Upstate Medical University’s cancer center in Syracuse.“This required the use of iron ore aggregates to be included in the mix, which boosted the concrete weight by two-thirds over typical mixes,” he said. “It’s a very dense end product.”Feyerabend said that everyone in the industry does ‘lightweight’ concrete, but said that Saunders does an incredible volume of the material and has developed a special mix over the years; he said it has performed very well. Lightweight concrete is used in placements such as elevated slabs where the structural weight is a concern.Caring for their ‘hardware’ is of utmost importance, also.“An example of our dedication to our fleet is bringing conveyor trucks to Central New York, and then purchasing more front-discharge ready-mix trucks when we saw there could be a demand for these,” Feyerabend said. “In more recent times, we have followed the technical revolution, starting first with computer batching, and then setting up a computerized central dispatch facility with GPS capability that can track and contact all vehicles, which allows us to be more efficient with deliveries.”In addition, by replacing vehicles and equipment on an aggressive rotation, Saunders secures its reputation of reliability by drastically reducing time lost to equipment failures or breakdown.He said by being able to “see” everything in central dispatch, trucks can be moved from plant to plant and help from a nearby plant can be hastily procured through dispatch of another truck if there is a delay in the field.Feyerabend added to Tracy’s company history by adding that Saunders has been environmentally conscious for a long time.“We worked with the Marcellus Central School District on ‘Project Green Eyes,’ which won a prestigious national award back in 1996,” he said. “More recently, we have found ways to increase points for contractors building LEED-certified projects to access regionally located recycled cementitious materials.”Project Green Eyes was a pioneering reclamation project that involved the restoration of mined areas.Saunders hasn’t let any grass grow under their feet – keeping abreast of trends and needs in the industry is vital to their continued success.“The concrete industry has changed drastically in just the

past 10 to 15 years,” Feyerabend said. “In years past, we would just be asked for a specific strength mix, and backup was seldom required. Now, every commercial job seems to have very particular requirements in the specifications, and concrete mixes often have to be developed or tailored to that spec.”He said this has included the use of many new or updated admixtures.“There are standard admixtures that have gone in many mixes over the years, like air-entrainment, water reducers or synthetic fibers,” Feyerabend said. “There are others that have been around a while, but are only sometimes used, like superplasticizers, corrosion inhibitors, shrinkage reducers, steel or blended – steel and synthetic blend – fibers, and accelerating admixtures – often used in the hot weather to keep the concrete from setting up too early.”In addition, Feyerabend said Saunders offers new and exciting admixtures, such as “workability admixtures” that hold all the properties of concrete for a certain length of time, which helps reduce cracking, helps with water-tightness and durability; “vapor-retarding admixtures,” which reduces the time a slab needs to be cured, allowing the contractor to place tile or other flooring finishes onto the concrete in record time, saving time – and therefore money – for contractors and customers, alike; “viscosity-modifying admixtures” that help control bleeding, segregation and stability; and “integral crystalline waterproofing” that not only seals the surface of the concrete like traditional waterproofing, but also fills in the pores and capillaries of the concrete. If the concrete gets a hairline crack and water enters, it will rehydrate and reseal the infiltration.“We have also invested in a liquid color machine,” Feyerabend said. “We have formulas that can match very accurately more than 600 different colors from the major color pigmentations. Often, if we don’t have the formula, we can track it down – very much like they can do with a chip at the paint store. The advantage of adding color to a truck when batching instead of putting it on at the site is that the color is much more uniform from start to finish.” Saunders is an active member of the American Concrete Institute, New York Material Association, Associated Builders and Contractors, National Ready Mix Concrete Association and the American Concrete Pavement Association.“We are active with all of these groups to better understand the needs of construction team members, including contractors, engineers, architects and business owners,” Markinson said.Saunders serves small and commercial contractors of all sizes, municipalities and residential property owners.

Breakout Box 1PROJECT HIGHLIGHTS* SUNY Upstate Medical University Cancer Center – Saunders made a ‘heavyweight concrete mix’ out of iron ore, which was used to form walls of the radiation rooms. The process is unusual and difficult, due to the increased weight of the material. The same work was performed for Cornell University’s Wilson Nuclear Reactor Laboratory.* Saunders is in the process of making 10,000PSI concrete for the amphitheater project on Onondaga Lake. This is a special design project; typically, concrete is mixed to between 3,000PSI and 5,000PSI.* Saunders collaborated with Cornell University in assisting New York State to develop “HP” concrete – a high-strength, longer-life product for use on bridge decking.* Saunders has provided services to all local hospitals and universities – the Veterans’ Administration Medical Center Spinal Cord Injury Wing, Golisano Children’s Hospital, Institute of Human Performance, St. Joseph’s surgical wing and emergency room addition, Cornell University, Colgate University, Syracuse University’s Newhouse School and College of Law, and SUNY Cortland – to name a few; they also completed the Clinton Square Ice Rink with green coloring.

Breakout Box 2HONORS AND AWARDSACI CNY 2014Concrete Gold Medal Winner: Dineen Hall, Syracuse University College of LawConcrete Silver Medal Winner: St. Joseph’s Hospital Masterplan Phase 2bConcrete Award of Merit Winner: Syracuse University Football Program Renovations & Additions, Plaza Recognition WallACI CNY 2013Concrete Gold Medal Winner: Exit 33 – Turning Stone Resort & CasinoConcrete Silver Medal Winner: Cayuga Medical Center – Surgical Services AdditionConcrete Bronze Medal Winner: Syracuse University Sadler Dining Hall Expansion & RenovationACI CNY 2012Concrete Bronze Medal Winner: Veterans’ Administration Medical Center Spinal Cord Injury/Disease Center Addition

Gary Markinson, of Saunders Companies, tests concrete specimens for compressive strength at Saunders' in-house quality control laboratory.


Saunders also worked with the DOT to develop a 12-hour accelerated mix.

“This concrete has been used in high-traffic roadway areas, such as Thruway toll booths and Interstate bridges or ramps, where they couldn’t afford to be shut down for long,” Feyerabend said. “This accelerated concrete can be driven on in 12 hours or less.”

Saunders provided a ‘heavyweight’ concrete for the radiation walls at SUNY Upstate Medical University’s cancer center in Syracuse.

“This required the use of iron ore aggregates to be included in the mix, which boosted the concrete weight by two-thirds over typical mixes,” he said. “It’s a very dense end product.”

Feyerabend said that everyone in the industry does ‘lightweight’ concrete, but said that Saunders does an incredible volume of the material and has developed a special mix over the years; he said it has performed very well. Lightweight concrete is used in placements such as elevated slabs where the structural weight is a concern.

Caring for their ‘hardware’ is of utmost importance, also.

“An example of our dedication to our fleet is bringing conveyor trucks to Central New York, and then purchasing more front-discharge ready-mix trucks when we saw there could be a demand for these,” Feyerabend said. “In more recent times, we have followed the technical revolution,

starting first with computer batching, and then setting up a computerized central dispatch facility with GPS capability that can track and contact all vehicles, which allows us to be more efficient with deliveries.”

In addition, by replacing vehicles and equipment on an aggressive rotation, Saunders secures its reputation of reliability by drastically reducing time lost to equipment failures or breakdown.

He said by being able to “see” everything in central dispatch, trucks can be moved from plant to plant and help from a nearby plant can be hastily procured through dispatch of another truck if there is a delay in the field.

Feyerabend added to Tracy’s company history by adding that Saunders has been environmentally conscious for a long time.

“We worked with the Marcellus Central School District on ‘Project Green Eyes,’ which won a prestigious national award back in 1996,” he said. “More recently, we have found ways to increase points for contractors building LEED-certified projects to access regionally located recycled cementitious materials.”

Project Green Eyes was a pioneering reclamation project that involved the restoration of mined areas.

Saunders hasn’t let any grass grow under their feet – keeping abreast of trends and needs in the industry is vital to their continued success.

“The concrete industry has changed drastically in just the past 10 to 15 years,” Feyerabend said. “In years past, we would just be asked for a specific strength mix, and backup was seldom required. Now, every commercial job seems to have very particular requirements in the specifications, and concrete mixes often have to be developed or tailored to that spec.”

He said this has included the use of many new or updated admixtures.

“There are standard admixtures that have gone in many mixes over the years, like air-entrainment, water reducers or synthetic fibers,” Feyerabend said. “There are others that have been around a while, but are only sometimes used, like superplasticizers, corrosion inhibitors, shrinkage reducers, steel or blended – steel and synthetic blend – fibers, and retarding admixtures – often used in the hot weather to keep the concrete from setting up too early.”


In addition, Feyerabend said Saunders offers new and exciting admixtures, such as “workability admixtures” that hold all the properties of concrete for a certain length of time, which helps reduce cracking, helps with water-tightness and durability; “vapor-retarding admixtures,” which reduces the time a slab needs to be cured, allowing the contractor to place tile or other flooring finishes onto the concrete in record time, saving time – and therefore money – for contractors and customers, alike; “viscosity-modifying admixtures” that help control bleeding, segregation and stability; and “integral crystalline waterproofing” that not only seals the surface of the concrete like traditional waterproofing, but also fills in the pores and capillaries of the concrete. If the concrete gets a hairline crack and water enters, it will rehydrate and reseal the infiltration.

“We have also invested in a liquid color machine,” Feyerabend said. “We have formulas that can match very

accurately more than 600 different colors from the major color pigmentations. Often, if we don’t have the formula, we can track it down – very much like they can do with a chip at the paint store. The advantage of adding color to a truck when batching instead of putting it in at the site is that the color is much more uniform from start to finish.”

Saunders is an active member of the American Concrete Institute, New York Material Association, Associated Builders and Contractors, Syracuse Builders Exchange, National Ready Mix Concrete Association and the American Concrete Pavement Association.

“We are active with all of these groups to better understand the needs of construction team members, including contractors, engineers, architects and business owners,” Markinson said.

Saunders serves small and commercial contractors of all sizes, municipalities and residential property owners.

Saunders Companies' owner, Tracy Saunders, with items from the company's rich history.


PROJECT HIGHLIGHTS

SUNY Upstate Medical University Cancer Center – Saunders made a ‘heavyweight concrete mix’ out of iron ore, which was used to form walls of the radiation rooms. The process is unusual and difficult, due to the increased weight of the material. The same work was performed for Cornell University’s Wilson Nuclear Reactor Laboratory.

Saunders is in the process of making 10,000PSI concrete for the amphitheater project on Onondaga Lake. This is a special design project; typically, concrete is mixed to between 3,000PSI and 5,000PSI.

Saunders collaborated with Cornell University in assisting New York State to develop “HP” concrete – a high-strength, longer-life product for use on bridge decking.

Saunders has provided services to all local hospitals and universities – the Veterans’ Administration Medical Center Spinal Cord Injury Wing, Golisano Children’s Hospital, Institute of Human Performance, St. Joseph’s surgical wing and emergency room addition, Cornell University, Colgate University, Syracuse University’s Newhouse School and College of Law, and SUNY Cortland – to name a few; they also completed the Clinton Square Ice Rink with green coloring.

HONORS AND AWARDSACI CNY 2014

Concrete Gold Medal Winner: Dineen Hall, Syracuse University College of Law

Concrete Silver Medal Winner: St. Joseph’s Hospital Masterplan Phase 2b

Concrete Award of Merit Winner: Syracuse University Football Program Renovations &

Additions, Plaza Recognition Wall

ACI CNY 2013Concrete Gold Medal Winner: Exit 33 – Turning

Stone Resort & Casino

Concrete Silver Medal Winner: Cayuga Medical Center – Surgical Services Addition

Concrete Bronze Medal Winner: Syracuse University Sadler Dining Hall Expansion &

Renovation

ACI CNY 2012Concrete Bronze Medal Winner: Veterans’ Administration Medical Center Spinal Cord

Injury/Disease Center Addition

ACI CNY 2011Concrete Gold Medal Winner: Cornell University

Herbert F. Johnson Museum of Art

ACI CNY 2010Concrete Gold Medal Winner: Syracuse

University Ernie Davis Hall

Concrete Silver Medal Winner: Syracuse University Center of Excellence

ACI CNY 2009Concrete Silver Medal Winner: Ithaca College

Classroom Link

Concrete Bronze Medal Winner: Syracuse University Carmelo K. Anthony

Basketball Practice Facility

ACI CNY 2008Concrete Silver Medal Winner: Cornell University

Life Sciences Technology Building

SYRACUSE(800) 872-2390

WATERTOWN(888) 335-0200

BINGHAMTON(800) 370-9488

ROCHESTER(866) 950-6210

ALBANY(866) 740-8853

We’ve had three decades of relationships with the Saunders Company, with Sherman, Michael & Tracy. Jerry Tracy and Michael were very close friends, and is dearly missed. Tracy has been a part of the Saunders Company for over two decades, and we wish her all of the success she very much deserves.

Here at Tracey Road Equipment, we are dedicated to the Construction Equipment and Heavy-Duty Trucking Industry, and to continuing to be our customers’ best business partner. Over the years we have forged wonderful relationships with our customers, manufacturers, and friends within the industry we love.

www.traceyroad.com &flxgi


This is the second in a series of articles dealing with contract and statutory notice of claim provisions. In the last article we looked at notice of claims and claims processing clauses that exist in contracts, subcontracts, purchase orders and transactional documents between suppliers and contractors. Those clauses are all there in the contract for you to locate and for you to read and understand. On certain projects, however, there can be entirely different series of notice of claim requirements that are not in the contract. This particular world is typically, although not always, the world of public works contracting.

On a public works project, chances are if you are a prime or general contractor to the owner, you will have to worry not only about how to process a claim in accordance with the contract, but also how a statute might require a claim to be processed. Consider for example a school project. Education Law Section 3813 requires that a contractor who has a claim on a school project must file with the governing body of the school district a Verified Notice of Claim within 90 days after a claim accrues. Who is the governing body? When does a claim accrue?

The governing body is the school board. It is not the superintendent of schools or a business administrator, but rather the Board of Education. A claim on a school project for a prime contractor is incurred when a request for payment for that sum of money is denied. This can happen in an

obvious way with a request and a denial in writing. It can also happen in less obvious ways such as a partial denial of an application for payment. It could also exist if a portion of an approved application for payment is subsequently changed and denied. It can also happen when a request for additional work or a claim is denied. The 90-day clock starts to tick from that point in time.

If a prime contractor on a school project misses the 90 days, they run the risk of losing their claim completely. This can be all the more problematic if the claim involves a subcontractor claim. A subcontractor may have an additional work claim on a school project. As we saw in the first article, the subcontractor’s claim will typically be guided by the claims and claims processing clauses in the subcontract. But what if the owner is responsible? The general or prime contractor should protect that right by seeing to it that the subcontractor’s claim is promptly processed in accordance with the Education Law. If it is not, the prime contractor may find themselves on the hook to the subcontractor without the ability to turn to the owner for payment.

Other public entities that have statutory notice of claims clauses include, but are not limited to, the State of New York, villages, towns, the City of Syracuse, other cities, and sometimes other municipalities. A good idea when you are working for a municipality is to get a copy of the municipality’s Charter, such as the City Charter. These are often available online. Look to see if there is a notice of claim processing requirement in the City Charter.

Not only do some of these statutes have requirements for giving notice, but some also have statutes of limitations built into them. That means a statute of limitations to bring a lawsuit. If you missed the time, you lose the suit. Back to school projects, under Section 3813 of the Education Law, a lawsuit must be commenced against a school within one year after that date that the claim accrues. In some instances, a court can grant permission to a contractor to file a late notice of claim, but a court can never grant permission to a contractor to file a late lawsuit.

The bottom line for both contract and statutory notice of claims requirements is that you must know them. Read your contract and read your supplementary general conditions. Consult with qualified and experienced counsel who can provide guidance with regard to construction claim processing requirements on public works projects. Good luck.

The information provided in this article is not intended to serve as specific legal advice for any particular situation. Competent legal and experienced counsel should be consulted.

Sheats & Bailey, PLLC is dedicated to serving the construction industry. You may contact them at 315-676-7314 or visit online at.www.TheConstructionLaw.com


eat-related illnesses can be deadly. Thousands become sick every year and many die due to

preventable heat-related illnesses. With summer temperatures rising, now is the best time to prepare for working outdoors in excessive heat by following a few simple steps:

Heat-Related Illness: Know The Signs

It's important to know the signs of heat-related illness—acting quickly can prevent more serious medical conditions and may even save lives.

• Heat Stroke is the most serious heat-related illness and requires immediate medical attention. Symptoms include: confusion, fainting, seizures, very high body temperature and hot, dry skin or profuse sweating. CALL 911 if a coworker shows signs of heat stroke.

• Heat Exhaustion is also a serious illness. Symptoms include: headache, nausea, dizziness, weakness, thirst and heavy sweating. Heat fatigue, and heat rash are less serious, but they are still signs of too much heat exposure.

If you or a coworker has symptoms of heat-related illness, tell your supervisor right away. If you can, move the person to a shaded area, loosen his/her clothing, give him/her water (a little at a time), and cool him/her down with ice packs or cool water.

Working In The Summer HeatSusan Geier Fahmy, CSP, Vice President, Director of Safety & Health Services, Lovell Safety Management

To Prevent Heat Illness: Water – Rest – Shade • Drink water every 15 minutes, even if you are not thirsty.

• Rest in the shade to cool down.

• Wear a hat and light-colored clothing.

• Learn the signs of heat illness and what to do in an emergency.

• Keep an eye on fellow workers.

• Acclimate—"easy does it" on your first days of work; be sure to get used to the heat and allow yourself to build up a tolerance. Not being used to the heat is a big problem. Many of the people who died from heat stress were either new to working in the heat or returning from a break. If a worker has not worked in hot weather for a week or more, their body needs time to adjust.

More resources are available on OSHA’s website in English and Spanish and even on an app you can download to your phone to calculate the heat index and provide recommendations based on your risk level.

Check out www.osha.gov/heat for training and other educational resources.

OSHA Heat SafetySmartphone App for Blackberry,

Android or iPhone

When you're working in the heat, safety comes first. With the OSHA Heat Safety Tool, you have vital safety

information available whenever and wherever you need it—right on your mobile phone.

The App allows workers and supervisors to calculate the heat index for their worksite, and, based on the heat index, displays a risk level to outdoor workers. Then, with a simple "click," you can get reminders about the protective measures that should be taken at that risk level to protect workers from heat-related illness—reminders about drinking enough fluids, scheduling rest breaks, planning for and knowing what to do in an emergency, adjusting work operations, gradually building up the workload for new workers, training on heat illness signs and symptoms, and monitoring each other for signs and symptoms of heat-related illness.

To get the App go to your favorite App store and search OSHA Heat Safety or OSHA Heat Safety Spanish.

Susan Geier Fahmy, CSP, is Vice President, Director of Safety & Health Services at Lovell Safety Management Co., LLC. For more information on Working in the Summer Heat and Related Safety Precautions you may contact Lovell Safety Management at 1-800-5-LOVELL or visit online at: www.LovellSafety.com

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Buying vs. Renting: Factors to ConsiderDick Ridings, Director of Lease and Sales, Tracey Road Equipment

It’s a simple choice, right? If you only need to use a truck or a piece of heavy equipment short-term, you rent it. If you’re going to need it long-term, you buy it. But wait . . . it’s not that simple. The decision to rent or buy should depend on many factors, and how those factors add up differs from one company to the next.

Let’s take a look at a few of the many factors you should consider when making a smart, strategic buy vs. rent decision for your fleet.

The big picture.

Savvy business owners know that total cost of ownership is the most telling evaluation figure, rather than any single factor, so you have to consider your rent-or-buy decision based on how long you expect to own (or use) the equipment. Along with calculating probable total cost of ownership, you also have to consider “total opportunity cost” for the same period. What will you gain by purchasing or renting, and what might you lose? These may be intangible – time savings, fewer hassles, improved business management -- but they do matter.

Rental equipment is often the latest and greatest, and that can drive up rental costs. On the other hand, new machines come with amenities, telematics and lower fuel consumption that can boost productivity and save you money. And renting is a way to “test drive” equipment you are considering purchasing.

Factors to consider.

• Short-term needs such as an unusually large job that requires more equipment or an “odd” job that requires machinery you don’t normally use generally point to rental. However, if your long-term business plans call for expansion, what types of jobs and project length do you anticipate? Will that require increasing your permanent fleet right away, or should you rely on renting in the near term and plan to purchase in another year or two?

• single project or many? Is it versatile enough to use in many ways on many jobs or an unusual machine you aren’t likely to need again? The more versatile a machine, the more cost-effective it is to own. Purchasing a machine that can use multiple attachments further increases its versatility.

• A rental may not be available when you need it, whereas your own fleet is always at hand. That can simplify planning and scheduling.

• If it’s a one-time job in ultra-difficult conditions, would renting eliminate undue wear-and-tear on your own equipment?

• attachments for a short-term need, rather than the entire machine?

• you’re putting the equipment to good use during that time so that it’s paying for itself.

• other uses.

Calculating costs.

Total cost to purchase over your selected time period include:

• outright purchase? You can save money by buying used rather than new, especially if you don’t need the bells and whistles that now come with new equipment. You can finance your purchase but you’ll need to add financing costs to “correct” the purchase price. How will the payments compare to rental payments? Pencil it out.

• expense you must factor in the cost whether you rent or own. • Maintenance, repairs, insurance, licensing, etc. These costs are included in the rental price. • jobsites – how does this expense change for you if you rent rather than own the machine?

• get when you sell the equipment in a few years.

Total cost to rent:

•

• other rental-related insurance.

•

• Transportation (perhaps repeated trips).

Continued on Page 19

Chances are if you’re like 50% of the consumers in the US and Canada, you’re planning to buy at least one smart accessory in the next 12 months. The popularity of these devices has grown tremendously and Gartner is now predicting there will be 4.9 billion connected devices by the end of 2015, up 30% from 2014.

So what are smart accessories, why have they become so popular and why am I writing about them in a contractor’s magazine?

According to the panelists at the International Consumer Electronics Show, there are four pillars of smart accessories: security, energy, entertainment and health. These accessories do just what the term implies, they make us smarter. They allow us to secure our house with remote locks and instant access to camera feeds from inside or outside our homes. They can help us control environments by allowing us to adjust lighting and temperature remotely. They allow us to access games, TV shows and music without having to be sitting on our couches. They give us deeper insight into our health through applications like pedometers and heart rate and sleep monitors. All in, what they really give us is control through instant access and intelligent feedback about ourselves and our environments.

First, we saw health accessories take off. Most of you probably know someone who has a FitBit or an Up band that they look to throughout the day to make sure they’ve taken


enough steps and burned enough calories during their workout. Now we’re seeing the popularity shift to smart home accessories, which are migrating into smart office accessories because business owners see the benefits are the same whether these devices are plugged in at their homes or at their offices.

Ninety percent of consumers say that “security” is one of the top reasons to buy a smart home accessory, followed closely by “cost and efficiency.” When businesses look at the money they can save by being able to control simple things like the temperature and shutting off lights remotely, the ROI speaks for itself; especially when the devices have easy DIY installation with a simple plug-and-play experience.

Here are a few accessories that made the lists for both smart connected homes and smarter connected offices:

So, are you making your buildings smarter? Have you thought about including this kind of technology right in your bids? It could be a competitive differentiator for your company, especially since the next generation of leaders and decision makers already embrace this technology. They want to be more secure and more efficient at work, just like at home. With your next project, do the plugging for your customer and let them play!

Do you have a tech topic you’d like to know more about? Let’s talk!! Email me at:[email protected].

Sources:http://www.crn.com/slide-shows/components-peripherals/300076103/10-products-for-a-smarter-connected-office.htm/pgno/0/1http://safesoundfamily.com/blog/the-50-best-smart-home-products-for-diyers/http://www.icontrol.com/wp-content/uploads/2015/06/Smart_Home_Report_2015.pdfhttp://www.twice.com/news/international-ces/evolution-smart-home-its-security-stupid/55600

TECH TALK WITH MARLAYNA Catanzarite, VERIZON WIRELESS


There are plenty of horror stories of the Internal Revenue Service (IRS) cracking down on companies that improperly accounted for expense reimbursement payments made to employees. Construction companies are at risk due to the nature of the business and the expense reimbursement policies (or lack thereof) for certain travel, meals, and job site expenses incurred by employees in connection with the performance of their jobs. In order to avoid IRS scrutiny, employers should maintain, and adhere to, a written policy, whether it is an accountable plan or a non-accountable plan.

Accountable Plan

Under an accountable plan, the expenses are deductible by the employer, and the burden of proof of expenses lies with the employer. Payments for the reimbursement of expenses are not taxable to the employee under an accountable plan. In order to be an accountable plan, three requirements must be met. The expenses reimbursed under the plan MUST:

1. Have a bona fide business connection;2. Require employees to substantiate the expenses reimbursed within a reasonable time period; and3. Restrict advances to reasonable amounts for anticipated future expenses and must require employees to return any excess.

As a result, all expenses reimbursed must be incurred in the ordinary course of business under an accountable plan. The most common abuses of this requirement relate to expenses incurred in relation to travel; meals and lodging; tool allowance; and auto reimbursement. Travel and lodging must be incurred while away on a business trip, and there must be a bona fide business purpose for the trip. Personal expenses cannot be reimbursed under an accountable plan.

All bona fide business expenses must be fully substantiated under an accountable plan. This is the area where most contractors get tripped up, resulting in expense reimbursements being reclassified by the IRS as payments under a non-accountable plan. (Wages) Substantiation of travel and entertainment expenses must provide sufficient evidence of the amount of the expense, which can be substantiated by actual receipts, a per diem rate, or a mileage rate. The employee must also provide the time and place of the travel, the business purposes of the travel, and the employer’s relationship with the person entertained.

An accountable plan must restrict advances to reasonable amounts for anticipated future expenses and must require employees to return any excess. The IRS has been cracking down on abuses of accountable plans that provide allowances or advances. Of particular interest in the construction industry is the use of tool allowances paid to employees who own their own tools.

Recent IRS guidance has been issued that prohibits the use of allowances for tools under an accountable plan if there is no requirement that the excess allowance be returned to the employer for any unsubstantiated expenses. In cases where there was no substantiation requirement or repayment requirement, the payment of allowances for tools was reclassified as wages to the employee. This requires that the employer make the payment of both the employer and employee portions of social security and Medicare tax. Additionally, the employers in some cases were subject to substantial penalties due to a pattern of abuse of the accountable plan rules.

Non-Accountable Plan Non-accountable plans are simply defined as an expense reimbursement plan that is not an accountable plan. Non-accountable plans are not the most

tax efficient way to reimburse employees due to the payment of payroll taxes (by both the employee and employer) and the reduced income tax benefits of the expense deductions by the employee. However, due to the record keeping requirements and possible penalties associated with the reclassification of payments under an accountable plan, some companies choose to reimburse employees for expenses under a non-accountable plan.

Payments under a non-accountable plan are treated as additional wages to the employee rather than a business expense classified as travel, meals, etc. Therefore, unlike an accountable plan reimbursement, the reimbursement is income to the employee, and the employee can deduct the business expenses on their individual income tax return, subject to certain limitations. Additionally the classification as wages will increase the total wages used to calculate the premiums for general liability and Workmans' compensation insurances.

Construction companies need to review their expense reimbursement policies to ensure the proper treatment. If the intention is to have the tax beneficial accountable plan, it is critical that the three-prong test is met. Failure to adhere to the accountable plan rules will result in significant penalties upon IRS examination.

Mr. Shires is a tax partner and a member of Dannible & McKee’s construction group. If you would like additional information on the accountable plan rules or a review of your current expense reimbursement policy, please contact him at (315) 472-9127, or via e-mail at [email protected].

Visit Dannible & McKee, LLP online at www.dmcpas.com.


Meet the SBE TeamLisa Peregoy, Plan Room ManagerName and Title: Lisa Peregoy, Plan Room Manager

How long have you worked for the SBE? 26 years

Fortunately in 1989 the processes and practices of the exchange were very well established. Starting as an entry-level plan room assistant provided the perfect foundation for a career at the Syracuse Builders Exchange.

SBE has always embraced the philosophy of cross training its employees, over time each employee becomes proficient at each position. Cross training was crucial in becoming familiar with the unique challenges of serving the construction community. Without learning each position, assuming the role of Plan Room Manager would have been much more challenging. It was this solid base of experience that proved to be critically important when the Board decided to embrace the Internet; accepting the challenge of entering the age of technology.

What are your current responsibilities?

• Training• Customer service• Membership promotion and sales• Plan and oversee various social events• Manage daily operations of the plan room and related staff• Coordinate with Architects, Engineers and NYS to acquire projects for bid, bid lists, results and awards• Website management and design• Implementing several systems into one new data base

What do you like most?

It would be really hard to pick just one aspect of this position.

Continuously learning new technology and implementing it is rewarding as well as challenging. Interacting with members and the industry, providing companies and individuals the information and services they require is fulfilling. And, knowing that what you do in this position makes a positive impact to a member’s business, that’s what SBE does, doing it well and seeing the results is very gratifying.

How often and in what capacity do you interact with your membership?

Every day, from emails, telephone calls, training, benefits and services meetings to just a simple “Hello.”

How do you feel your responsibilities strengthen the commercial construction industry as a whole?

Considering construction is a significant percentage of the U.S. GDP it would not be fair to say we could affect the industry as a whole. What we can and strive to do is assist our members in the storm of chaos that is construction. We work to provide the services that relieve members of some critical tasks, giving them more time to bid and win jobs.

How have you seen the SBE grow since your first day of work?

We are continuously growing. The construction industry has become much more complex, as a result the SBE has expanded and adapted its services to meet these complexities to assist membership and the industry. And, we will continue to do so.

Where do you see the SBE in five years? 10 years?

SBE was founded on April 30th 1872. Since that time the exchange has successfully navigated through significant changes in the construction

industry. To manage this, the directors and board members continually assess the industry and its needs to position the exchange for the betterment of its members. Sometimes cautiously other times boldly but always via deliberate consideration. As Plan Room Manager I do my best to execute their vision and provide feedback when necessary.

How can your membership take better advantage of the services you offer?

A simple phone call, we personally answer the phone, and we are ready and willing to assist all our members to save their businesses time and money.

What would you say to a non-member who asks you, “Why should I become a member of the SBE?” (In other words, your 30-second commercial for the SBE)

5 seconds – We are like having a research employee you don’t have to pay.

10 seconds- We offer FREE OSHA 10 and 30 hour training courses, Fall Protection, Scaffold User Safety, Respiratory Protection, QuickBooks for Contractors, just to name a few.

15 seconds - Great group rates on AT&T and Verizon Wireless plans.

25 seconds - Meet the Generals Event, Advertising, Buyers Guide, Insurance, Workers Compensation.

30 seconds - After you take advantage of all of those great programs we throw in the Electronic Plan Room.

applications that enhance profits & productivity.

I© 2012 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. Other marks contained herein are the property of their respective owners.

Workforce Management Applications from AT&T

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GPS-based solutions deliver proven savings on:

Fuel and maintenance costs—optimize dispatching and routing, set geo-fence and speed alerts.

Overtime and time-keeping—clock in and out from the job site—not the office; and send alerts before overtime occurs.

Paper and processing time—eliminate the need for paper and speed up processing invoices by collecting electronic proof of service/delivery.

Maximize operational productivity and efficiency for:

Response times—assign the right person to the right job by location and skill set, and potentially do more work each day.

Customer service—email customers when work is scheduled and completed, and reduce calls to your customer service team while improving customer satisfaction.

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Christopher Stojcev315-480-5838 [email protected]


Compare out-of-pocket costs by figuring total cost to rent or own over the period in question, then use that number to calculate cost/day, month or year and cost/hour of use. Equipment that isn’t working is purely an expense.

Get professional advice.

Don’t make any decisions without talking to a financial advisor about tax implications of renting versus purchasing or leasing. These all affect your financial statement and tax returns differently. Ask if 1031 Like-Kind Exchange might benefit you.

Talk to your heavy equipment or truck dealer, too. It’s their job (and desire) to help you make high-performance decisions – not just best possible pricing and financing options but assistance in determining whether buying or renting makes more sense for you.

Sooner than you want to believe, the busy season will be winding down and it will be time to turn your attention to upgrading or augmenting your fleet for next year. Should you buy that additional equipment, or should you plan to rent as needed? Armed with a sharp pencil and a few of the factors we’ve outlined here, you’ll be able to begin to make the most cost-effective choices. Once you have worked through these considerations, call your local dealership and let them advise you through other factors to think about, and help you make the choice that's right for you and your company.

For more information on the factors to consider in buying vs. renting please call Dick Ridings, Director of Lease and Sales at Tracey Road Equipment, 315-437-1471. You may also visit Tracey Road Equipment online at www.TraceyRoad.com.

Continued from Page 13


What Gets Measured, Gets DONE, Right?

Often there are great ideas generated in an organization and a whole lot of talk. As an owner/leader, you must begin by defining your company mission, vision and core values. Establish team structure and purpose. Identify all key players and their roles within your organizational structure, and execute, right? Not so fast. Now determine your organizational goals with a time line and end date. Assign who is responsible and what resources they will require to accomplish the determined business goal. Items are now getting accomplished, but are they really?

You need a way to measure forward progress and achievement of your desired goals. Key Performance Indicators (KPI) are those measurements. The best KPI are those that directly tie back to the Profit & Loss, and Balance Sheet. A KPI should be very clear and concise.

KPI are also referred to as Key Success Indicators (KSI.) Measuring your progress on a regular basis allows you to make the necessary adjustments to stay on target with your business goals.

The five main reasons for measuring performance are:

• task improvement• progress•

• reporting• with the organization. What Are Key Performance Indicators (KPI) and why do I need them anyway? I think I’m doing just fine as it is right now.

KPI are quantifiable measurements that reflect the critical success factors of your business. They will differ depending on the organization.

• measures the percentage of its income that comes from return customers.• Department could be the percentage of customer calls answered in the first minute.• be the ratio of sales calls made to actual sales recorded.

Whatever KPI you select, they must reflect your business goals. KPI are usually long-term considerations.

Key Performance Indicators Must Be Quantifiable

If a KPI is going to be of any value, there must be a way to accurately define and measure it. “Generate More Repeat

some way to distinguish between new and repeat customers. You also need to set targets for each KPI.

KPI Examples

Here are some examples to consider. This is not an exhaustive list, but can be a great place to start.

Marketing

• • Web Hits, etc.)• Strategy• •

Sales

• • • • • • • Number of Face-To-Face Meetings•

Customer Service

• • • • Number of Sales – Returning

• • Survey) •

Human Resources

• • • • • •

WHY KEY PERFORMANCE INDICATORS? (KPI)Jeff Rogers, CPBC, Executive Business Coaching


Finance/Administration

• • • • • • • •

A Good Place to Start:

ACTION STEP:

Now get busy building your KPI Dashboard and grow your business. Be concise and set clear expectations.


Congratulations and best wishes to all of the following winners of the 2015 scholarships and their parents. The scholarship program was established by the Syracuse Builders Exchange Board of Directors in 1998 and have awarded more than $100,000 since its inception.

TAYLOR GEBHARDTAttending: Georgetown University

Proposed Degree: Human Science

Parents: Greg & Lynn Gebhardt

SBE Member: Ice Builders, Inc.

RYAN SAYKO

Attending: Allegheny College

Proposed Degree: Physics

Parents: Victor & Carolyn Sayko

SBE Member: The V/S Group

TAYLOR COLLINS

Attending: Clarkson University

Proposed Degree: Environmental Engineering

Parents: John & Carolanne Collins

SBE Member: Ice Builders, Inc.

CARINA SCALISE

Attending: Alfred SUNY College of Technology

Proposed Degree: Construction Management &

Engineering Technology

Parents: Mark & Angela Scalise

SBE Member: Bon-Ton Glass of Syracuse, Inc.

CAMERON SCHIAVONE Attending: SUNY College of Environmental Science & Forestry

Proposed Degree: Environmental HealthParents: Phillip & Gina Schiavone

SBE Member: Nagle Athletic Surfaces, Inc.

GRIFFIN KLEPS Attending: Morrisville State College

Proposed Degree: Residential Construction

Parents: Dave & Sharon Kleps

SBE Member: Charles A. Gaetano Construction

JOSHUA BRILLO Attending: Alfred SUNY College of Technology

Proposed Degree: Construction Engineering Technology

Parents: Eric & Theresa Brillo

SBE Members: Brillo Excavating & Waste Disposal and

Diamond & Thiel Construction Co., Inc.

JANELLE WALKER Attending: Jefferson Community College

Proposed Degree: Liberal Arts Math & Science Concentration

Parents: James & Deanna Walker

SBE Member: Cardinal Construction of NY, Inc.

CHRISTOPHER SCHIAVONE Attending: SUNY College of Environmental Science & Forestry

Proposed Degree: Environmental Health

Parents: Phillip & Gina Schiavone

SBE Member: Nagle Athletic Surfaces, Inc.

MADDEN ROWLEE Attending: Clarkson University

Proposed Degree: Chemical Engineering

Parents: Taber & Melissa Rowlee

SBE Member: Rowlee Construction, Inc.

, Ltd.


The Syracuse Builders Exchange extended the craftsmanship deadline from April 30, 2015 to September 30, 2015. The project eligibility jurisdiction has also been extended to include 16 counties within the Central New York area. These counties include Broome, Cayuga, Chemung, Chenango, Cortland, Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, St. Lawrence, Seneca, Tioga and Tompkins Counties. Projects eligible for awards must be for work completed from January 1, 2014 through December 31, 2014.

The annual SBE Craftsmanship Awards Program was established many years ago by the SBE Board of Directors to recognize and honor exceptional craftsmanship and to encourage the highest level of ingenuity and workmanship. Characteristics considered include quality, professionalism, craftsmanship, and degree of difficulty.

Please call or email us today for more information

Women In ConstructionAccepting Nominations Now for 2016

Coming soon… our Second Annual Women in Construction Issue to be featured in our Winter 2016 Edition. This special edition highlights the women who make the commercial construction industry prosper in Central New York.

If you employ, work along side of or know of a female business owner who is deserving of recognition in our Women in Construction issue, we would like to hear from you.

Nominations are accepted for any craft or trade performed by an employee of a SBE member firm in one of ten categories; e.g., structural, interior/exterior, mechanical, electrical, rigging, project supervision, roofing, site-landscaping, residential and other.

Plaques are presented to the craftsmen and their employers at an awards dinner with photo displays of the winning projects prominently on view. Photos of the winners and projects are also featured on the SBE website and in the SBE Construction Contractor magazine.

Those members interested in nominating an employee and project can log onto our website, Syrabex.com, or contact the Syracuse Builders Exchange at (315) 437-9936 for additional information and an application.

The highest level of expertise for the Construction Industry

Financial statement audits, reviews, and compilations Expert advice in bank financing and bonding Filing assistance with state agencies for prequalification Job cost management Employee benefit and wage planning Taxation assistance and financial planning Fraud detection and prevention Valuation and ownership transition planning

We’re commited to:

221 S. Warren St. | Syracuse, NY 13202

(315) 472-9127 | www.dmcpas.com

Contact Ken Gardiner at [email protected]

Ken Gardiner Joe Hardick :ŽĞ��ŚĞŵŽƫ

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