Economy/Cash Flow
Trimble, a project management software company, studied approximately 1,000 of its customers including specialty contractors on new project starts, contract values, hiring and cash flow during Q3/Q4 of 2024 and determined the following: 

• Cash flow increased 60% for specialty contractors in the fourth quarter of last year
• Net hiring increased 18%
• Contract values decreased 40%
• New projects decreased 40%

They concluded that “specialty contractors should experience growth potential for new work and profitability of that work, provided they have the capital and capacity to perform.”

Are We Ever Going to Do Something About Slow Payment?
Everyone knows that subcontractors finance construction. Why has nothing changed in the last few years? If you look at your accounts receivable, how much is wrapped up in unpaid change orders and in retention?

ASAMW has joined forces with the National Association of Minority Contractors, DMV Chapter and the Metro DC Hispanic Contractors Association to formulate a short paper that explains the issues and what can be done. The recommendations proposed require a commitment on the part of owners to:

SUBBYS RESULTS
Outstanding General Contractor companies and individuals were honored at ASAMW's Annual Subby Awards on Saturday, Feb. 22nd, 2024. While all participants demonstrated excellence, click here to see all the recipients and nominees. The following companies received multiple awards:

•    Clark – Project Engineer and Scheduling
•    Coakley & Williams – Project Manager and Scheduling
•    DAVIS – Base Building and Interior
•    HITT – Superintendent and Great Team (Redbrick, Owner)

Nominations come from multiple sources, making each nomination a meaningful recognition. Each ASAMW Member gets one vote to select the recipients.

As subcontractors increasingly affect the outcome of project awards by their bidding preferences, a SUBBY nomination is used as a criterion in determining who and how to bid on projects.

Were you one of the 444 attendees at the SUBBYs? Check out these photos from that memorable Saturday night.

TARIFFS AND BUY AMERICA
Members are raising questions about how tariffs will affect material and equipment prices in their bids. While these concerns shift daily, members should note that Buy America requirements remain unchanged from the previous administration. This Construction Dive article addresses BABA (Buy American, Build American).

SUBBYS IS ALMOST HERE! DID YOU VOTE?

The highlight of our year as a subcontractors association is the SUBBYs. Each member has a representative who is charged with voting in each of the categories for companies and individuals who exhibit the characteristics of the BEST for that particular award. You might not know the individual being considered, but your vote still counts. Read the description of the award and vote for someone with a company that you think deserves the recognition. Click here to view the 2025 Subby Nominees. Are you REGISTERED to attend? Early bird registration ends on January 31, 2025.

Here is your SUBBY Nomination Form Make a Nomination Today!

You know an individual or company that deserves recognition for a job well done. Please include them in a Subby Nomination here. Obviously, this takes some effort on your part but it means a lot to those who are nominated. Subby nominations are an obligation if you support or are a member of ASA of Metro Washington. For 61 years, this has been the opportunity to recognize the GCs, Owners and other industry stakeholders for outstanding performance in creating a fairer and more efficient industry in the DMV. How will your company be sure it makes nominations? 

Subby Nominations

Subby nominations are an obligation if you support or are a member of ASA of Metro Washington. For 61 years, this has been the opportunity to recognize the GCs, Owners and other industry stakeholders for outstanding performance in creating a fairer and more efficient industry in the DMV.  This can be an interesting company function. For instance, one company asks its PMs, APMs and Estimators to discuss the nomination form and then each person is responsible to submit one nomination.  How will your company be sure it makes nominations? 

Report from the Summit with GCs and Subs on Scheduling
Both GCs and Subs learned about the unique challenges finishing subcontractors face when they come on a job site. Seven of ASAMW’s GC Partners listened to their trade partners and collaborated about possible solutions to scheduling issues by both parties.  Significant improvements will take place when we focus on GOOD COMMUNICATION. Your suggestions on how to foster better communication are welcome.  Some other take aways:

• Weekly Planning Meetings: Ensure all relevant trades are invited and participate actively.
• Information Sharing: Establish open communication channels for sharing project information and updates.
• Pull Planning: Break down the project into smaller phases and plan accordingly.
• Quality Assurance: Implement a robust quality assurance process involving all stakeholders.
• Technology Utilization: Leverage project management tools and 3D modeling for better visualization and coordination.
• Owner Engagement: Foster a collaborative relationship with the owner to address concerns and ensure project success.

Delays/Handoffs/Conflict and How They Relate To Scheduling
This Construction Dive Article reiterates some of the issues that were raised in our Summit reported above.  Handoffs between trades is by far the leading cause of delays according to this TouchPlan blog.  The Summit discovered some solutions to this in our discussions.  Members who would like a copy of the PowerPoint may request by reply to this email. Additionally, conflicts are going to happen.  According to this article from Building Design + Construction, conflicts happen in over half of the interactions between GCs and Subs on a daily basis.  In most cases the Sub loses.

Straight (and confidential) Talk about Using Independent Contractors
What risks do you need to assess before deciding to use independent contractors? Many of our members resort to second-tier subcontractors on their projects. What must you do to comply with current laws regarding independent contractors? If you do not comply, what is your risk? At this event on Sept. 25^th at the law offices of Lerch Early & Brewer in Bethesda, members will not only hear current information but can also ask confidential questions about their operations to assess the risk they are taking. Click here for more information and to register.

Prevent Contract Errors
This article from JD Supra lists some valuable tips for preparing for a big project, but could be used in all projects. They recommend:

• Know the entire contract – the boilerplate is not the complete contract.
• Be sure of other documents that make up the contract – drawings, specifications, etc. 
• “Which claims are included?” – court, arbitration, etc. Check to see what you have to cover.

Charging Fines for Safety Violations?
OHSA has multiple sections that address employee discipline, which can be confusing to some. Ned Fitter, Safety Director at Telligent Masonry said, “You can discipline an employee for a safety infraction if you have a disciplinary policy in place, along with clearly stated policies and procedures that the employee has been trained on. If you receive an OSHA citation and then discipline an employee for it, this action is considered retaliation. I would not use the word citation when disciplining employees for safety infractions. I have seen larger general contractors fine subcontractors for clearly defined safety violations such as fall protection, excavation, or electrical issues.”

Important Discussion about PLAs
Although space is limited, it's imperative for our members to consider projects involving PLAs in their future work. With some construction sectors slowing down, you need to be prepared to bid on public jobs with PLAs. We're holding a confidential discussion on the ins and outs of such jobs. The team at Grunely will lead this discussion, but the most important questions will come from you. You can ask questions yourself or submit them anonymously ahead of time. Click here to learn more and to register.

What are Independent Contractors?
If you are using, or plan to use independent contractors, you should review this article from CLA, the accounting firm. They recommend you evaluate current independent contractors against the new rule to determine classification. ASAMW wants to make sure its members are protected from prosecution and fines, but you have to make your own decision about what is best for your company. There has been a 57 percent surge in the use of independent workers in the US according to MBO Partners. I am sure a lot of that increase is in construction. We learned this week that two companies that are part of ASAMW and three labor providers are being sued by this same office, the DC Office of the Attorney General for wage violations. Click here to read OAG’s press release. 

Are Your Subs Using Legitimate Workers?
To clarify the issue of the use of subcontractors in projects in DC, we received the following explanation from an attorney for DC’s Office of the Attorney General: