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W2O: Finding Success Through a Service-Based, Customer-First Approach

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By Elizabeth Landry

When Dereck Withey ventured out to start W2O Pump & System Services in 2015, the decision was made with his family in mind.

“I had been working as a regional service manager for Wilo, a pump manufacturer, since 2012, doing most of the troubleshooting across the US. My daughter was born in 2014 and at the time I was on average about 25 days away from home every month. You can’t be a part of your family’s lives when you’re not there. It was time for a change,” Withey explained.

Today, almost 10 years later, Withey is the owner of the successful W2O business located in Cortland, NY, a family-owned pump and system services company that specializes in the operation and maintenance of water and wastewater treatment plants along with collection and distribution systems. He shares part ownership with his sister, Jenae Withey, and the company was created as a division of W2Operator Training Group, a retirement business that Withey’s parents, Douglas and Marian, created in 2005. W2Operator Training Group offers initial certification and recertification for every grade of water license, as well as additional training based on customer requests.

Withey grew up around the water treatment industry. His father spent about 30 years with the City of Cortland Water Department, ending his career as the Superintendent. With almost 18 years of experience working in various aspects of the industry, Withey has built W2O to be a one-stop shop for everything related to service and maintenance of pumping equipment, while remaining true to his focus on family and doing what’s best for his team.

“The motivation behind our day-to-day efforts is ultimately our team,” said Withey. “Most of us come from big corporations where you put in long hours but at the end of the day, you’re a number. With W2O, we decided we wanted to do things differently, where your co-workers and your employees truly matter. With that in mind, we have a lot of flexibility and we’re very supportive of our employees and their families.”

Service First, Sales Later

Alongside the focus on family and flexibility, W2O’s business model emphasizes service-based sales, in which the main offering is maintenance and repair work, and the actual sale of equipment follows later. Withey explained how this style of business is somewhat unique in the industry and stands out from other businesses in the water treatment and pump space.

“Most other companies in the industry are sales companies that have a service department. They typically have exclusive contracts for sales from numerous manufacturers within a given territory,” Withey explained. “We approach things differently, understanding that customers may prefer one brand versus another, and we want to service and maintain their equipment no matter the manufacturer. We offer service on all manufacturers and types of pumps, including preventive maintenance, repair, and installation. We’re the distributor as well as an installing contractor, and we offer turnkey proposals on projects where we’re involved from beginning to end.”

This service-based approach makes W2O a true one-stop shop for all their customers’ various needs. Jeff Kruger, Superintendent of Water and Sewer for the City of Binghamton, described how W2O’s service-first, yet all-encompassing offerings make the company stand out from the rest.

“It’s quite easy to choose a company that’s getting everything done, working above and beyond. Dereck and his team have been an amazing resource – he’s been my first call for the past four or five years and he hasn’t let me down yet. The service, sales and installation being out of the same shop is a bit different from other places. With W2O you get everything from start to finish. It really makes the business unique,” stated Kruger.

Solving Problems Reliably and Efficiently

W2O’s service-based sales approach includes an emphasis on troubleshooting, preventive maintenance and guaranteeing that their work will continue to perform over the long term for customers. All the company’s repairs are warrantied for 12 months from the date of invoice, and sometimes that warranty has been extended to 18 months.  Withey explained how the team’s deep knowledge of how pumps and water systems operate allows them to deliver high-quality work for their customers.

“We stand behind our work. If we have a pump go in and it fails at 18 months and we can’t figure out why it failed, we’ll typically cover it. We have a very good knowledge of installation standards, the hydraulics and the electrical end of the pumps and the pump and system process overall. When issues arise, we can do a full evaluation of every part of the system in detail to find out what’s causing the failure and then come up with the best way to fix it,” said Withey.

W2O provides service and preventive maintenance for customers of various sizes, from large cities and municipalities to small villages and towns, and their customer base extends throughout New York State and Pennsylvania and into New England. One of W2O’s preventive maintenance contracts is with the Village of Marcellus Wastewater Treatment Plant. Even though it’s one of the company’s smaller customers, Greg Chrysler, Department of Public Works Supervisor for the Village of Marcellus, said they’ve received consistent reliability from Withey and his team.

“Probably the number one reason we do preventive maintenance with W2O is they’re always right there and on time when we have a problem,” Chrysler said. “That’s huge for a wastewater treatment plant because everything needs to run 24/7 and when something breaks, we need a quick response. The team at W2O is very efficient and we don’t have to worry about whether the job is done right or wrong – it’s always done right. Even though we’re a smaller customer for them, we still get the same quality and efficiency they offer their larger customers.”

Focusing on Customers’ Needs

Working with customers of all sizes means W2O provides service plans and contracts ranging from one pump all the way up to several municipalities. As Withey explains, “There’s no ‘cookie cutter’ or ‘take it or leave it’ approach with us. Everything we do is centered on what the customer wants and what’s in the customer’s best interests.”

W2O’s customized service offerings go hand-in-hand with a reputation for honesty and integrity that often also benefits customers financially. Withey described a project in which W2O consulted with engineers during a wastewater treatment plant upgrade at the Village of Moravia, in which several pieces of equipment were failing and wouldn’t last until construction on the upgrade was planned to begin.

“We worked with the engineers to make sure the equipment used for the urgent repair could be repurposed for the future upgrade as well, so they only had to spend the money once,” Withey said. “Through the process, we also found an engineer had made a mistake, but we caught it on the front-end, helped them fix it right away and ultimately saved them money down the line. With every project, our main goal is to provide the best service possible at a fair price.”

Another project Withey and his team completed was a pump replacement for YAWS Environmental at the Cayuga Heights Wastewater Treatment Facility in Ithaca. Three of the facility’s pumps that distribute to the trickling filters had either failed or were failing, and by leaning on a relationship Withey had developed with Wilo Pumps, he discovered the best solution for the specific needs of the facility.

“We had reached out to Wilo about a different style of pump we initially thought would be best, but through the conversation we found they had been developing a brand-new style of pump that turned out to be a great application for this project. Wilo Germany agreed to let us bring the pumps in and install them here in the US for the first time. It’s been a tremendous success,” Withey explained.

Mike Albro, Lead Operator for YAWS Environmental, emphasized how Withey and the team at W2O continue to provide honesty and cost-savings as they focus on how to best meet their customers’ needs.

“Dereck genuinely cares about his work and the people he’s doing the work for,” said Albro. “If he can ever help anyone out by giving them a break or saving them some costs, he’s always looking to do that, and so honesty is a big factor. If he feels like something isn’t going to work right or if there’s a better way to go about a situation, even if it’s through another company, he’ll be honest and tell you the truth. He’s just a stand-up individual. I’ve enjoyed working with him very much.”

Plans for Future Growth and Expansion

With Withey leading the way and developing an honest business strategy that delivers value for customers time after time, W2O has seen consistent growth since its inception. In almost 10 years of business, the team has grown to include five employees, completing between 200 and 240 projects per year and driving revenue growth by nearly $1 million over the last year. For Withey, these accomplishments fuel his drive for even more expansion in the coming years.

“The thing I’m most proud of is how everyone on the team has come together and how much the company has grown in a short period of time. We’re now in the planning phases of a very large expansion of our repair shop – we currently operate out of a 3,000-square-foot building and we’ll be adding 13,000 additional square feet. We’re also going to expand the services we offer, getting into some light manufacturing and taking the leap into engineered sales, and we’ll be expanding our service fleet from two to four service body crane trucks. I hope to double our staff by 2026 and then expand the training side of the business, as well, within the next five years.”

Although the business continues to grow, it appears the focus on meeting customers’ needs first will remain at the center for W2O, as emphasized by the company’s customers themselves.

“We’ve been with W2O for several years and they’ve grown a lot as a business – they’re offering many more services and products. But Dereck has made sure he has enough great people on the team to continue that quality of work and reliability we need to keep things running smoothly. As the business is getting bigger, he’s not forgetting about the needs of customers when something breaks – it’s the same level of service as when they were a smaller company,” said Chrysler.

It’s a sentiment echoed by Albro, as well: “I believe they’re going to go very far. The quality of work is nothing less than the highest expectation. With Dereck and his team, the relationships they develop with customers are personal – it’s not always about business. I believe that’s going to go a long way for the company as they continue to expand in the future.”

www.W2Pump.com

2024 Laws That Businesses Need To Comply With

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Diana Plue, Esq., Sheats & Bailey, PLLC

Every year New York State passes new regulations and laws that impact how you do business. This past year was no different. Below is a summary of new laws and regulations that Employers must comply with or risk potential fines. 

  1. Effective January 1, 2024, small businesses will be required to file Beneficial Ownership Information (BOI) Reports with the US Department of Treasury, disclosing the company’s ownership information. Failure to file a BOI report can result in hefty fines of up to $10,000.00 per violation and prison time. The deadline for filing depends on when the company was formed. Companies formed before January 1, 2024, must file their BOI report by December 31, 2024. Companies formed after January 1, 2024, must file a BOI report within 90 calendar days from the formation date to comply.
  2. Effective February 15, 2024, the statute of limitations to file a claim with the Division of Human Rights for claims involving any type of unlawful discriminatory practices (race, sex, gender, age, disability, etc.), is extended from one year to three years.
  3. Effective March 12, 2024, employers are prohibited from requesting or requiring access to worker’s social media information and accounts. Employers cannot require an employee to disclose their social media accounts username and passwords.
  4. Effective March 13, 2024, executive, administrative and professional employees making $1300.00 or less per week will no longer be confined to commencing a civil action in court to recover owed wages but may now bring an action with the Department of Labor to recover owed wages.
  5. Effective June 19, 2024, employers must provide 30 minutes of paid lactation breaks to an employee each time an employee has a reasonable need to express breast milk for up to three years following the birth of a child. These breaks are in addition to regular meal and break times. Prior to this date, lactation breaks did not have to be paid. Employers must inform employees when they are hired, once a year thereafter and when they return from maternity leave about their right to take paid breaks for pumping breast milk.
  6. Effective December 30, 2024, contractors and subcontractors must be registered with NYS Department of Labor as a public works contractor, before submitting a bid or commencing work on public projects or private projects subject to prevailing wages. Contractors and subcontractors who submit bids or work on public projects without registering will be subject to a civil penalty.
  7. Effective January 1, 2025, employers must provide eligible employees with 20 hours of paid prenatal leave during any 52-week period. Prenatal leave is in addition to any statutory sick leave benefits.  Notice of this leave must be given in writing to employees.
  8. Effective January 1, 2025, minimum wage for counties outside of NYC, Long Island and Westchester County is increasing to $15.50/hour and the salary exempt threshold for overtime exempt employees increases almost two thousand dollars to $60,405.80 per year.
  9. Effective January 1, 2025, NYS Buy Clean Concrete Act, which puts forth emission limits for concrete used in state funded public building and transportation projects becomes mandatory. All State agency building contracts over $1 million that involve the use of 50 cubic yards of concrete and all transportation contracts over $3 million that include at least 200 cubic yards of concrete are subject to the Buy Clean Concrete Act. Starting January 1, 2025, concrete used in these projects will need to comply with mandatory emissions limits and all concrete used in such projects needs to have an environmental product declaration (EPD) submitted.
  10. Effective July 1, 2025, Covid Sick Leave Act expires, and employers no longer must provide paid Covid Leave.

As New York State is constantly enacting new laws and regulations, expect additional laws to be passed in 2025.  If you need further assistance or have additional questions, please contact Sheats & Bailey, PLLC.  www.TheConstructionLaw.com; Tel. 315-676-7314.

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

Simplifying Safety: The Urgent Need for Usable Safety and Health Plans by Small Construction Firms

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Wael Khalil, Vice President, Director of Safety & Health, Lovell Safety Management

For small construction firms and subcontractors, having a usable safety and health plan is not just a formality, it’s a necessity for safeguarding their workforce. Regardless of a company’s size, it’s crucial to have a clear, effective strategy to mitigate workplace hazards and ensure employee safety.

Many small construction business owners believe that extensive field experience can substitute for a formal safety and health plan. This perception often stems from their day-to-day involvement in operations, which they feel gives them direct control over safety issues. Many others have the approach that a safety and health plan is only a document needed when bidding for new work.                                   

However, this informal approach lacks the structured benefits of a documented plan.

A concise and relevant safety and health plan is more than a compliance measure, it organizes essential safety protocols and serves as a practical guide for employees. It helps standardize responses to high-risk tasks and ensures consistent safety practices among all workers, thereby enhancing overall site safety.

Safety and health plans should encompass a variety of elements tailored to the specific needs and risks of the workplace. Key components should include hazard identification, risk assessment, control measures, emergency procedures, and employee training. Plans should clearly outline responsibilities and provide a framework for reporting incidents and near misses, which is crucial for ongoing improvement and prevention strategies.

Moreover, the plans should facilitate compliance with relevant OSHA standards and other legal requirements, but they must also remain practical and directly applicable to the daily operations of the workers they are designed to protect. For instance, topics like proper handling of tools and materials, specific protocols for working at heights, and guidelines for the use of personal protective equipment are essential for construction sites. Each procedure outlined should be actionable and devoid of unnecessary complexity that could hinder its real-world application.

The prevailing trend steered by larger general contractors often emphasizes voluminous safety documentation, valuing quantity over quality. This leads to overly extensive safety plans that are cumbersome and impractical for actual field application. Rather than improving safety, these exhaustive documents primarily serve to shield the job site from potential litigation, rather than ensuring the actual safety of workers on the ground. Additionally, general contractors frequently employ third-party vetting firms, which contribute further to the complexity of subcontractors’ safety and health plans.

For instance, I came across a drywall contractor that was required to have a crane and rigging policy, a demand imposed by the general contractors but disconnected from the subcontractor’s actual work. This mismatch exemplifies the disconnect that arises when safety plans are dictated by entities removed from the specific realities of the job site.

Instead of one-size-fits-all documents, safety plans should be dynamic, living documents that are updated regularly to reflect actual job scope and hazards. This approach not only enhances compliance and safety but also fosters a safety culture that values input from employees, making safety an observed priority every day.

For real improvement in workplace safety, the industry needs to assist small construction firms and subcontractors in crafting straightforward, pertinent safety and health plans. These plans should focus on actionable, relevant safety measures tailored to the specific needs of the job and the workers. By moving away from unwieldy documents to more manageable and applicable plans, we can ensure that safety protocols are not just theoretical requirements but practical tools that significantly enhance safety on construction sites.

Larger general contractors have a significant responsibility to prioritize the relevance and effectiveness of the safety and health plans they require from subcontractors. It’s imperative that they shift their focus from merely mitigating litigation risks to genuinely enhancing on-site safety. This approach ensures that the safety and health plans demanded are not just formalities or overly cumbersome documents but are instead practical, applicable tools that subcontractors can realistically implement and maintain. This change will foster a safer workplace environment, where the actual safety of employees is the cornerstone of all safety protocols. By aligning safety documentation with the real-world needs of those on the ground, larger contractors can play a pivotal role in promoting a culture of safety that transcends legal compliance and truly protects workers.

At the end of the day, training employees on a 250-page safety and health plan filled with information that doesn’t directly apply to their tasks or the specific hazards they encounter is not just difficult, it’s ineffective. Workers are far more likely to understand and adhere to safety protocols when they are presented in a straightforward, relevant, and concise manner. Complex, overly lengthy safety plans can overwhelm employees, obscuring the key safety measures that directly impact their day-to-day work.  Streamlined, tailored plans make training simpler, helping employees retain critical information and apply it effectively, creating safer job sites where every worker feels protected and empowered.

For more information on this issue and other safety related concerns you may contact Wael Khalil, VP & Director of Safety & Health, Lovell Safety Management at wkhalil@lovellsafety.com or 917-692-9108.   You may also visit online at www.LovellSafety.com.

How Trump’s Presidency Could Impact Taxes for Construction Companies

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Shawn T. Layo, CPA, Dannible & McKee, LLP

Donald Trump’s victory in the 2024 presidential election has revived discussions about potential tax policy shifts his administration could implement. Many provisions from the 2017 Tax Cuts and Jobs Act (TCJA), President-Elect Trump’s major tax code overhaul signed into law during his first presidency, are set to expire at the end of 2025.

With his reelection, Trump has signaled a commitment to extending and building upon these reforms, potentially introducing new measures designed to lower costs, incentivize investments and spur job creation within industries aligned with his infrastructure-focused agenda.

Most contractors are familiar with the Qualified Business Income (QBI) deduction, also known as Section 199A, which has allowed owners of pass-through entities to deduct up to 20% of qualified business income. This provision, which originated with the TCJA, has been a substantial benefit for pass-through companies by serving as a 20% deduction from taxable income passed through to partners and shareholders. It is currently scheduled to expire on December 31, 2025. With Trump’s potential push to extend or enhance tax cuts, the QBI deduction could be preserved, further easing financial pressures on small and mid-sized construction businesses.

Another significant component of the TCJA that has already begun to phase out is bonus depreciation for qualified property, such as heavy construction equipment. For assets placed in service from September 28, 2017, through December 31, 2022, contractors and other businesses were allowed to take 100% bonus depreciation. This has been a huge benefit for companies. Unlike Section 179 expensing, bonus depreciation can be used to create a loss. However, this provision began to sunset in 2023, with bonus depreciation decreasing to 80% for assets placed in service during 2023 and 60% during 2024. If not extended, bonus depreciation will continue to decrease by 20% each year and eventually expire entirely at the end of 2026. Trump’s return to office could result in the extension or expansion of these provisions, enabling construction companies to modernize their operations without incurring sizable upfront tax liabilities.

Corporate tax rates also remain a topic of discussion. Before the TCJA, corporate tax was calculated on a progressive basis, with a maximum tax rate of 35%. Post TCJA, corporations are now taxed at a flat rate of 21% which was made permanent and is not expiring. While there is no specific proposal currently regarding the corporate rate, Trump has suggested reducing it to 20% or possibly even lower for companies that make their products in the United States.

Infrastructure development has long been a cornerstone of Trump’s platform. His administration is expected to push for significant federal spending on roads, bridges, and other critical projects. Tax policies may be structured to incentivize private-sector participation, such as offering tax credits for companies engaging in public-private partnerships.

Furthermore, the administration could introduce targeted tax breaks for companies sourcing materials domestically, benefiting companies that rely on U.S.-produced steel, concrete and other construction inputs.

While many of these potential tax changes could positively impact construction companies, such tax cuts would likely need to be offset by revenue-generating measures. Trump has proposed steep tariffs on foreign-manufactured goods, which may increase the cost of imported materials such as steel and aluminum. Construction companies would need to account for these potential price increases when budgeting for projects.

Undoubtedly, 2025 will be a year full of proposed major tax legislation changes. Trump’s presidency could create a favorable environment for construction companies to expand and thrive. However, companies must remain vigilant about balancing potential benefits with challenges like rising material costs or fluctuating federal budgets. Staying informed and engaging in proactive tax planning will be crucial for businesses seeking to maximize opportunities under the new administration.

Shawn T. Layo, CPA, is a tax partner at Dannible & McKee, LLP, a public accounting firm with offices in Syracuse, Auburn, Binghamton and Schenectady, NY, and Tampa, FL. The firm has specialized in providing tax, audit, accounting and advisory services since its inception in 1978. For more information on this topic, you may contact Shawn at slayo@dmcpas.com or (315) 472-9127. 

Effective Management of Workers’ Compensation Claims: A Guide for Employers

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Gavel for judge lawyer with construction helmet and US dollar banknotes money for working project in office.

By: OneGroup

Managing workers’ compensation claims can be daunting. There are some key items to be aware of in order to effectively work through this process. With the state’s revision to the rating formula for the Experience Modification Rate (EMR) in 2022 and evolving trends in the claims world, workers’ compensation claims are having a significant impact on businesses. Variables like this make it even more important to pay attention in the unfortunate event of a claim. This article outlines the essential steps employers should take following a workplace accident to ensure the best possible outcome for their business.

Immediate Response to an Accident

When an accident occurs, the first step is to investigate the claim thoroughly. This involves gathering detailed information about the incident, including the who, what, where, when, and how. It’s crucial to ask as many questions as possible early on to capture accurate details before memories fade or stories change.

Key steps include:

  • Interviewing the injured employee: Ask specific questions about what happened, how it happened, and where it happened.
  • Examining the accident site: Verify any claims about broken equipment or hazardous conditions.
  • Identifying witnesses: Speak to coworkers immediately to get their accounts before they have a chance to discuss the incident among themselves.

Documentation

Proper documentation is vital in managing workers’ compensation claims. Employers should use incident reports to record all relevant details. If an incident report is not immediately available, have the employee write a statement or write it for them and have them sign it. This creates a paper trail that can be crucial if the claim is later disputed.

Important documentation practices include:

  • Detailed incident reports: Ensure they cover the who, what, where, when, and why. The injured employee needs to sign and date the document.
  • Specific injury details: Clearly document the body part or parts injured to minimize the potential for the claim to evolve and include other sites.
  • Witness statements: Collect and have witnesses sign their statements immediately. Try to secure a phone number, home, and email addresses for the witness.

Reporting Process

Employers must document and maintain a record of any injury or illness for 18 years. The injury or illness must be reported to the insurance carrier (and the Board) within 10 days of the disability or employer knowledge of disability—defined as lost time or restricted duty—if there is more than one day of lost time beyond the shift when the injury occurred or if medical treatment extends beyond first aid.

Steps in the reporting process:

  • Timely reporting: Ensure the claim is reported to the insurance carrier within the mandated timeframe to avoid penalties, and to provide time for the carrier to investigate the loss. Reference New York form C-2F (Employer’s First Report of Work-Related Injury/Illness) for information the carrier will need. Contact your broker if you are uncertain how to report a loss.
  • Share your concerns: If you question a loss or there are details which seem important which are not addressed in reporting, let the carrier know you would like to be contacted to discuss further. When the carrier contacts you, it is appropriate to share your concerns with them.
  • Let the employee know you have reported the loss. If a claim number is provided by the carrier, share that with the employee. Medical providers will request this information at the time of treatment.
  • Involve risk management: Reporting losses helps identify and address potentially hazardous situations and avoid future incidents.
  • Electronic Data Interchange (EDI): Understand that state-mandated EDI reporting requires timely and accurate submission to avoid penalties.

Components of a Claim

A workers’ compensation claim typically includes several components:

  • Indemnity: Payments for lost time, which can be a temporary closed period of lost time or a schedule loss of use (SLU) award or Loss of Wage-Earning Capacity (LWEC) award for permanent injuries.
  • Medical expenses: These are lifetime expenses and can increase annually due to rising average weekly wages and fee schedules.

Active Management of Claims

Active management of claims is crucial for minimizing costs and ensuring a positive outcome. Employers should:

  • Provide prompt medical attention: This helps the injured employee recover quicker and return to work, even in a limited role, which can reduce the overall cost of the claim.
  • Engage in proactive communication: Keeping open lines of communication with the injured employee can foster a sense of loyalty and reduce the likelihood of litigation. Set the expectation that employees inform you and provide documentation of their medical examination dates and status after each appointment. Failure to do so may jeopardize their workers’ compensation benefits and perhaps their employment status. Share the medical status information with your carrier.
  • Inform your carrier when an employee’s work status changes (out of work, returns in a transitional duty capacity, returns full duty, etc.)
  • Update your carrier with any relevant developments you become aware of, i.e., employee is unable to work but is still participating in outside activities, etc. Don’t assume the carrier shares your knowledge.
  • Complete the forms. Yes, there are many. Yes, they are cumbersome. However, if they are not completed fully and accurately, you will be asked to do them again. If you do not, penalties and adverse findings will follow. Do it right and do it once! (If you have questions on how to complete, ask your broker before you submit)

In Summary

Effective management of workers’ compensation claims involves prompt investigation, thorough documentation, timely reporting, and active management. By following these steps, employers can mitigate the impact of claims on their business and ensure compliance with state regulations. Proper handling of claims not only helps in reducing costs but also supports a safer workplace environment.

If you have any questions or need further assistance, please do not hesitate to reach out to OneGroup’s team for guidance and support.

 

2024 Year in Review

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Earl R. Hall, Executive Director

As the Syracuse Builders Exchange (“SBE”) prepares for a new year, and the abundance of opportunities that await the Association and our member employers. Let’s reflect upon the highlights of 2024 and the importance of the region’s only not-for-profit construction industry Association.

Membership

The stability of SBE’s loyal and diverse membership remains our greatest strength.  While the membership data reflects a consistent composition of general contractors/construction managers, specialty subcontractors, suppliers, manufacturers’ representatives, and professionals (architects, engineers, accountants, etc.), the core of SBE’s membership remains specialty subcontractors (72%) followed by general contractors/construction managers (11%).

Membership activity experienced an unusually high number of membership applications from out of area employers (both from within and outside of New York State) as contractors are eager to take advantage of anticipated economic development opportunities throughout central and upstate New York.

Today, SBE remains New York State’s largest construction industry Association with approximately 960 member firms.

Electronic Plan Room

Enhancements to the e-plan room were well received by our 900+ firms and over 4,500 end users.  Upgrades to the e-plan room during 2024 included:

  • The elimination of jpg and tif files and the implementation of PDFs for all bidding documents, thus making it easier for end users to export such to various estimating and take-off software platforms.
  • Launching a new blueprint viewer with additional and user-friendly features.
  • Deploying state-of-the-art estimating and take-off software features within the new blueprint viewer, providing firms with limited budgets to use built-in estimating and take-off software.

In addition to the enhancements, SBE reported on over 6,000 projects in 2024, including projects in the planning stages, projects in the bidding stages, addenda, apparent low bidders and contract awards.

Education and Safety Training

Never in the history of SBE has the Association provided more in-depth education and safety training classes and content to member employers, and their employees. 

New in 2024 was the launch of SBE’s Building Information Modeling (“BIM”) classes.  To accommodate SBE’s investment in BIM, SBE purchased laptop computers for the classroom for students to use, along with pre-loaded Autodesk material.  During the process, SBE was awarded the title of an Autodesk certified and approved training center, the only Builders Exchange in the country with this designation.  To teach our BIM classes, SBE hired BIM expert Eric Wing, who is the director of BIM at C&S Companies and professor at the Syracuse University School of Engineering.

SBE continued our relationship with the Rochester Institute of Technology, providing construction industry employers throughout central New York the ability to receive the many highly regarded RIT construction education curriculum right here in the Association’s classroom.  SBE and RIT will continue this relationship into the future.

Mohawk Valley Builders Exchange Merger

As reported throughout 2024, the Mohawk Valley Builders Exchange (“MVBE”) and Syracuse Builders Exchange (“SBE”) Boards of Directors and memberships voted to merge.   While the New York State Attorney General’s Office Anti-Trust Bureau still must approve of the merger, such is anticipated to occur on or about January 1, 2025.

Although this merger marks the end of an era, it does not erase MVBE’s rich history and tradition in the Mohawk Valley region.  This new chapter reflects an evolution in which employers will begin to receive enhanced services built on collaboration, innovation, trust, and strong values.  Together, we aim to provide a more vibrant, impactful, and cohesive construction industry community throughout a large geography of upstate New York.

Social and Networking Events

SBE’s social and networking events continue to be well attended and supported.  As a result of the MVBE merger, SBE anticipates hosting additional social and networking events in the Utica region.

Conclusion

2024 was an excellent year for the organization, driven by increased income, reduced expenses and strong investment performance.  SBE has no debt and remains fiscally strong in many ways, enjoying revenue streams only made possible by the support of our resilient member employers and their employees.

On behalf of SBE’s staff, Officers, and Board of Directors, I would like to thank our membership for the tremendous, continued support of your Association.  The success of SBE is attributed solely to the incredible membership our staff has the privilege of serving.  Thank you for the trust and confidence you have placed in SBE as we remain excited about playing an important role in your business.  Thank you for including us on your team.

Clark Equipment: Heavy Hitters in Heavy Equipment Owner’s Focus? Customers Satisfaction Company in Culture and Equipment

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By: Martha Conway

Clark Equipment Rental and Sales of Canastota celebrates its 20th anniversary next year – an impressive milestone for any business today – and owner Adam Clark is planning for the next twenty. Clark’s origin story began in grade school; through his dedication to customer satisfaction and adapting to changing client needs, he’s built an impressive reputation.

“I’ve always been an entrepreneur,” Clark said. “Before I could drive, I was pushing a lawnmower around town; I mowed about 15 lawns.”

Clark said he just fell into the work, growing up in a construction family.

“My dad suggested I start an equipment rental business, and I thought he’d done a lot more than just casual thinking about it when suggesting I should start a business,” he said.

Expanding to meet demand

Clark said after taking a couple of years to learn how to manage the business, he wanted to capture revenue lost from not selling equipment.

“The first year, I was by myself,” he said. “I drove around in a pickup doing deliveries. I had a cell phone the office phone rolled over to and another to call customers. Toward the end of my second year in business, I hired my brother to do deliveries. I did sales, still driving around with the office line rolling over to me.”

Over the next couple of years, Clark hired Kyle Stevens and Mike Christian. Stevens has moved on, but Christian just celebrated his 10-year anniversary.

“I’m really proud he’s still with me,” he said. “He saw me go from the Quonset hut on Brighton Avenue to the building on State Fair Boulevard and now to Canastota.”

Clark started out working from a storage unit in Syracuse. From there, he moved to a one-acre property with a 3,600-square-foot warehouse. The next move increased the physical space to about six acres with a 7,000-square-foot building.

“I thought we’d never outgrow that place, but after three or four years, I realized we needed more space,” he said. “Now I have 20 acres and a 20,000-square-foot warehouse, and a year later, I’m like, ‘holy cow, we’re going to outgrow this place.’ I’m already thinking I need a bigger building.”

Clark Equipment started out with three skid-steers and three mini-excavators; over the years, he kept adding more equipment – bulldozers, rollers, and backhoes. Inventory typically runs between 600 and 700 pieces of equipment now and he employs 30 people. Clark said he’s started doing a lot of telehandlers and boom lifts in recent years.

“That’s a different customer than we were initially focused on,” he said. “I’ve got a bunch of excellent mechanics; they’re hard-working and loyal, and I take care of them the best I can. In addition to my mechanics, I’m blessed to have a strong sales and service department staff.”

Customer service is Job #1

The entire Clark Equipment team is laser-focused on customer service,

“When I first started, I was so small, I couldn’t help but get to know customers personally,” Clark said.

“I think when you’re that small, you respect and appreciate having people come to you, so you want to give them really good service,” said general manager Amelia Trenga. “That desire to provide excellent service has stuck with Adam and Clark Equipment, which allows us to maintain the small business feel, no matter the growth.”

Trenga said Clark Equipment looks for staff who have natural customer service abilities.

“You can teach someone the equipment, machines and processes, but you can’t teach empathy, understanding, flexibility and compassion,” Trenga said, explaining that as general manager with a great team, she is able to focus on customer experience and satisfaction.

“We’ve kept that personal touch,” Clark agreed.

Service writer Jodi Stone said Clark Equipment particularly prides itself on quick customer response, whether rental, sales or service.

“If you have a machine out on rent and it breaks down, we respond within 24 hours, if not the same day,” Stone said. “With the bigger companies, you could be waiting for four or five days. I think if you polled our customers, they would tell you everyone here is very nice – we don’t have any ‘Grumpy Georges.’ We listen and try to be super positive and helpful. We listen carefully then say, ‘Okay, let’s figure out how we can fix this.’”

She said because Clark deals in newer equipment and performs extensive pre-rental and pre-sales inspection checklists, job interruptions due to equipment problems are rare.

Max Ford, who heads up inside and out-of-state sales and rentals for Clark Equipment, confirmed the need for speed.

“Having a quick response time, answering the phone and being transparent is what customers want,” Ford said, adding that he works to make transactions as painless as possible for clientele. “This has been pivotal to building a new customer base and repeat customers; now I have a solid repeat customer base outside New York state.”

“We have a lot of repeat business because people like our customer service,” Stone said. “Max has a lot of repeat customers thanks to his efforts and everything service does to get equipment ready and help customers once they have it. If they have a problem, we try to help them through it. It’s harder when they’re out of state, but we can still point them in the right direction, whether they need parts or service.”

Company culture

Trenga said Clark has cultivated a company culture that drives employees to treat customers very well.

“Everywhere is going to have the machines, but not everywhere is going to have the dedication and understanding we do,” she said. “We are determined that customers feel taken care of. That’s not true at every company, and it starts from within. Our company culture drives a staff that is motivated to achieve a common goal.”
“We’re a family-owned and -operated business – we’re not treated like numbers, so we don’t treat customers like numbers,” Stone said. “I think bigger dealerships see customers as dollar amounts, not people. We know our repeat customers by their first names, and they know me by my first name. Sometimes they are driving by and stop in to say ‘hi.’”

“From the guy who washes the machines to the guys who service them and the rest of the team, we have a great support system,” Ford said.

Trenga said no one works in a vacuum if a problem arises because everyone pitches in to help.

“We’re not a big chain, so we can focus on the smaller things,” Stone said. “That’s one of the things I truly enjoy about working here. It’s nice to work for someone who understands that life happens. Adam cares about his employees and cares about his customers.”

Expanding client base

Ford said quick responses, top-notch customer service and the ability to sell equipment country-wide have contributed to Clark Equipment’s growth.

“We’re also able to help with financing and shipping to customers all over the country, which has made it a lot easier for me to sell equipment,” he said.

Ford said it is critical to deliver on promises made and to be transparent in all transactions.

“My favorite part of the job is being able to solve problems for people,” Ford said.

Clark said he listens constantly to client needs in order to make available the equipment people need when they need it.

“If we keep getting customers asking for something, we start buying it,” he said. “I would never have thought we’d be selling forklifts. Three years ago, I didn’t have any forklifts. I try and keep track of needs so I can fill them.”

Newer-model machines without the new equipment price
“We don’t hold onto equipment too long,” Clark said. “I try to turn everything over within two to three years. These machines are so expensive, it’s hard for the average contractor to afford them. A big advantage to working with us is that we take the edge off the price of buying new.”

“Clark is unique there, too,” Trenga said. “You’re renting and buying used machines, but they’re newer with fewer hours. Some companies keep equipment for 10 years. Here, people can get newer machines more competitively priced.”

Before any equipment goes out the door, it is subjected to a number of checklists. There are checklists for machines being rented out, for those being sold and for those being received into inventory.

“We go through everything to ensure everything is working,” Stone said.

For rentals, Clark Equipment uses the Record360 Rental Inspection app to record equipment condition.

“That protects us and the customer,” Stone said. “If something gets damaged on the job site, we have the proof for insurance.”

There’s another checklist when equipment returns from rental, and the service department goes through everything again.

“When we sell an item, there’s an even more detailed checklist the mechanic performs before anything goes to the customer,” Stone said. “They go through and make sure everything works; even though these customers are purchasing used equipment, they’re getting top-notch vehicles.”

New, bigger location

Clark said the new location provides space to have all equipment centrally located; early on, Clark rented additional spaces and had to take clients to different locations where equipment was stored.

“It’s easier to manage the inventory,” he said. “I’m very particular about the way my equipment looks and how it’s maintained. With everything in one location, it makes things much easier for my staff and customers.”

“The layout is much better geared toward success,” Trenga said. “We can have clients come and look at everything. It’s convenient to the Thruway, and it turns out it’s not much further from where they were originally getting machines. We’ve expanded our clientele east. It might not be budget-feasible to some of the smallest clients, but we’ve been able to serve everyone we already did and the people who are out here.”
Stone said the service department facilities are much improved, also.

“Rentals are flourishing, and we’ve got a lot of new customers purchasing equipment,” she said.

“It’s been great,” Ford agreed. “We have more room to store equipment, so we have a larger inventory; that equals more sales. The expanded, more efficient shop set-up allows the guys to get machines in and serviced faster, which means I can sell them faster. Basic maintenance and new asset check-in is quicker, too.”

Future vision

Clark plans to open a second location in another city within two years.

“I don’t know if we’ll go to Albany, Rochester or Buffalo, but I want to find a couple more team members, get a couple more processes in place, and I either want to buy somebody out or open a new store,” he said, adding that Canastota will be his headquarters. “After we have a second location set up, the third and subsequent location will come quicker.”

The goal is to open two new locations within the next five years.

“The challenge for me will be managing subsequent locations successfully, then keep rolling them out,” Clark said. “We have between 600 and 700 machines and sell 30 to 50 machines monthly. We rent a few hundred machines every month. The operation is pretty amenable to scaling. I just need a couple more key people – a couple more mechanics and one or two more good over-the-road salespeople. A couple more years of saving my pennies and we’ll open another store. Growing the business is fun.”

Why Clark

Staff cited Clark Equipment’s customer service and family-owned business environment as top reasons people should do business with them over competitors.

“We’re all family here, and we take pride in getting people quality used equipment for a great price,” Ford said. “We take a lot of steps to make sure the equipment is in excellent condition. Even if a machine was just inspected when it came off rent last week, we bring it through again to make sure everything works and it’s up to date on maintenance and service.”

“Adam has been in this industry his entire life, starting with his grandfather and father,” Stone said. “He’s very knowledgeable, and his people are very knowledgeable. There is always someone in this building who can solve problems.”

“It’s 100-percent a relationship business,” Clark said. “You have to be competitive on price and deliver a good product, but friendships make it much more fun, and everyone involved is much more productive and profitable ”

Clark Equipment Rental and Sales is located at 4 Technology Blvd., Canastota. For more information, call 315.472.7607 or visit ClarkRents.com.

 

Protect Your Right to Be Paid –What You Need to Know to Make a Claim on a Payment Bond

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By: Sheats & Bailey, PLLC

Hardly a week passes that our firm is not asked to file a claim on a payment bond for one of our clients.  A claim on a payment bond, like a mechanic’s lien, can be an effective device for getting you paid.  It is not the only legal tool at your disposal, but it can be a very effective tool.  This article will provide a few things you need to know about making a claim on a payment bond.   
 
Payment bonds are required by Section 137 of the State Finance Law on public projects.  Payment bonds are not a guarantee of payment; they are an undertaking by a surety which provides that a company providing work or materials for a project will have added security beyond the assets or liquidity of the contractor with whom you have a contract.  In other words, the payment bond provides another deep pocket from which to get your money.  I am sure you have encountered or heard of fellow subcontractors/suppliers that performed work/supplied materials, but never got paid because the upstream contractor went out of business.  A claim on a payment bond can prevent that from happening to you.   
 
In order to place a valid claim on a payment bond on a public project you need to be mindful of certain time limitations.  An action against a payment bond on a public project must be brought within one year from when the project was completed and accepted.  If your action is brought against the bond after the one-year statute of limitations expires then the action may be dismissed. 
If you are a second-tier subcontractor/supplier on a project then you must also provide an additional notice by certified mail, return receipt requested, to the up-line contractors, owner, and the surety.  The notice must generally provide a description of the work, the party you had a contract with, the amount of money due to you, your initial contract price and when the money was due.  Second tier subcontractors must give that notice within 120 days of when they last supplied labor or materials to the project.  Although there are exceptions, the failure to provide the notice may prevent you from asserting a claim on the bond.   
 
Sometimes private owners, like hospitals, universities, and museums, require contractors to provide a payment bond for their projects.  Private improvement bonds typically contain similar, but not identical, notice provisions and statutes of limitations as outlined above.  Often, the payment bonds on private projects require notice from second tier subcontractors/suppliers within 90, not 120 days, of when they last supplied labor/materials.    
 
Considering the tight time frames to make a claim on a bond, the best thing to do is get a copy of the bond for your records early in the project.  Have your PM and/or accounts receivable person calendar the statute of limitations within the bond and any notice requirements.  If you want to find out who the surety is then call the architect of record or send the public owner a Freedom of Information request; it is little more than a letter stating that the request is “pursuant to the Freedom of Information Law.”
People often ask if they should file a mechanic’s lien or make a claim on the bond.  Why not do both?  However, there are a few advantages to making a claim on the payment bond.  Very often an action against a payment bond will be a less cumbersome and less expensive way to recover your money than filing and foreclosing a mechanic’s lien.  Plus, the existence of a lien fund (i.e., does the owner owe money to the GC) is immaterial to a payment bond claim, but is necessary to prove to lien foreclose.  Likewise, the presence of any other claimants on the bond or those with other mechanic’s liens are immaterial.  A payment bond action can be as simple as your company versus the surety 
 
For more information or assistance contact Sheats & Bailey, PLLC, Tel: (315) 676-7314, www.TheConstructionLaw.com. 
 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.

Empowering Central New York:The Crucial Role of Manufacturing

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Jim D’Agostino, CEO, MEP Center Director

Central New York is a region rich in history, culture, and natural beauty. Amidst the picturesque landscapes and vibrant communities, manufacturing stands as a cornerstone of the local economy, driving growth, innovation, and opportunity. As we explore the unique regional economic landscape, one quickly sees that manufacturing plays a pivotal role in shaping our prosperity. And, with the arrival of Micron Technology and its supply chain, the influence of manufacturing will only continue to grow.

Central New York’s manufacturing sector serves as a vital source of employment, providing jobs that sustain numerous families and communities. From the production of aerospace and defense components to advanced medical devices and beyond, manufacturers in Central New York offer a diverse array of career opportunities. These jobs not only offer stability and some of the most competitive wages in the area, but they also foster a sense of pride in contributing to the region’s economic vitality. Manufacturing also fuels a culture of innovation and technological advancement within the region. Central New York boasts a rich ecosystem of research institutions that collaborate closely with manufacturers in a multitude of industries to drive innovation forward. Whether it’s developing cutting-edge materials, refining manufacturing processes, or pioneering new technologies, Central New York’s manufacturers are at the forefront of innovation, propelling the region into the future.

Manufacturing also serves as a magnet for investment and talent, bolstering Central New York’s economic development efforts. The region’s strategic location, robust infrastructure, and skilled workforce make it an attractive destination for businesses looking to establish or expand their operations. From multinational corporations to homegrown startups, manufacturers in Central New York benefit from a supportive business environment that fosters growth and prosperity. Importantly, manufacturing plays a crucial role in driving exports and enhancing Central New York’s competitiveness in the global marketplace. The region’s manufacturers produce a wide range of goods, from precision machinery to specialty foods, that are in demand both domestically and internationally. By exporting goods to markets around the world, Central New York’s manufacturers not only generate revenue but also raise the profile of the region as a hub of innovation and quality craftsmanship.

Additionally, manufacturing contributes to Central New York’s resilience and self-sufficiency, particularly in times of crisis. The COVID-19 pandemic underscored the importance of localized supply chains and the need for regions to be self-reliant. Central New York’s manufacturing sector rose to the challenge, pivoting production to meet the urgent needs of healthcare providers, essential workers, and the community at large. This agility and adaptability demonstrate the inherent strength of Central New York’s manufacturing base and its ability to weather adversity. Manufacturing continues to play a vital role in developing the skilled workforce that the region needs to thrive in the 21st century economy. Through partnerships with educational institutions, apprenticeship programs, and workforce development initiatives, manufacturers in Central New York are investing in the next generation of talent. By equipping individuals with the technical skills and knowledge needed to succeed in modern manufacturing settings, Central New York is ensuring that its workforce remains competitive and resilient.

As most of us locals already know, manufacturing is not just an industry in Central New York; it is a driving force behind the region’s prosperity and resilience. From creating jobs and fostering innovation to driving exports and empowering communities, manufacturing touches every aspect of life in Central New York. As the region looks to the future, including the exciting arrival of Micron Technology, continued investments in manufacturing will be essential to building an even more vibrant and sustainable economy that benefits all of us. By harnessing the power of manufacturing, Central New York can unlock new opportunities, spur innovation, and chart a course towards an even brighter tomorrow

TDO is a consulting and training organization based in Liverpool, New York. Our mission is to grow the local economy by helping Central New York manufacturers and technology companies drive operational excellence and cultural transformation to reach their full potential. TDO’s support of the local mission generated $265 million in economic impacts in the last contract period supporting jobs, investments, cost savings, and profitable growth. If you are a small or mid-size manufacturer and would like to talk further, TDO’s team is fully certified to help. Reach out today to learn more, 315-425-5144 or visit online TDO.org.

Navigating New York State Sales Tax

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Anthony Pokrentowski, CPA, Dannible & McKee, LLP

Taxable vs. Nontaxable Services

In NYS, sales tax applies to two main categories for contractors: repairs and maintenance, and installation services. Repairs and maintenance are subject to tax when they involve fixing or maintaining existing systems or structures, such as repairing damaged roof shingles or fixing a broken railing. Installation services are taxable when the installed items do not become part of the real property. This includes freestanding appliances, above-ground swimming pools, canvas awnings or weather stripping.
Conversely, capital improvements are exempt from sales tax. A capital improvement is characterized as an addition or modification that must:

1. Enhance the property’s value
or extend its useful life.

2. Become a permanent part of
the property.

3. Be intended as a permanent fixture.

To qualify, the customer must provide the contractor with a Certificate of Capital Improvement (Form ST-124).
Distinguishing between repairs and maintenance versus capital improvement can sometimes be tricky. The NYS Department of Taxation and Finance’s Publication 862, Sales and Use Tax Classifications of Capital Improvements and Repairs to Real Property, offers guidance. However, each project should be assessed individually to determine its classification.

Purchasing and Billing

Contractors generally pay sales tax on all materials and other tangible personal property purchased. Nevertheless, as discussed later, situations exist where purchases may be exempt, or credits can apply.
When invoicing a customer for taxable services, sales tax applies to all materials and labor costs, including markups. For instance, if $200 is billed for materials and $400 for labor, sales tax applies to the total of $600.

Organizations like churches, private schools and government entities are exempt from sales tax. To forgo collecting sales tax, contractors must obtain an Exempt Organization Certificate (Form ST-119) from these customers. In some situations, contractors can purchase materials tax-free when transferred to a tax-exempt customer as part of the project by using a Contractor Exempt Purchase Certificate (Form ST-120.1).

Use of Subcontractors

General contractors can hire subcontractors for taxable work without paying sales tax by using a Contractor Exempt Purchase Certificate (Form ST-120.1). This exemption allows the services the subcontractor provides to be exempt from sales tax to the general contractor. However, the general contractor remains responsible for collecting sales tax on the entire amount charged to the customer, which includes the fees of the subcontractor.

Materials and Projects

When purchasing materials for taxable services, contractors must pay sales tax at the time of purchase, but they can claim a credit for the tax paid. Examples include plywood, drywall, nails, landscaping, plumbing and electrical materials. However, credits do not apply for sales tax paid for items not transferred to your customer as part of the project, such as tools, rental equipment, paint brushes, drop cloths and gas.

For capital improvement projects, contractors pay sales tax on all purchased materials but do not charge sales tax to the customer. Additionally, you cannot claim a credit for the sales tax paid on these materials on your sales tax return. However, the sales tax paid on materials can be included in your material costs for the job performed.

When working with tax-exempt organizations, you can purchase materials tax-free using the Contractor Exempt Purchase Certificate (Form ST-120.1). If sales tax was paid on materials that later were used in an exempt project, you can claim a tax credit on those materials. However, sales tax paid on other supplies, even if used in an exempt project, cannot be claimed for credit.

Credits

Contractors may claim a sales tax credit if they paid sales tax on materials purchased and then passed those materials on to a customer as part of a taxable service while also charging sales tax to your customer. However, credits do not apply to capital improvement projects.
If you purchase materials and pay sales tax in NYS and later use them for an out-of-state project, you can receive a credit for the NYS sales tax paid. Similarly, if sales tax is mistakenly charged to a customer and later refunded, you can claim a credit for the refunded sales tax.

Subcontractors can accept a Contractor Exempt Purchase Certificate (Form ST-120.1) from the prime contractor instead of charging sales tax. Doing so does not prevent you from claiming a sales tax credit for any taxes paid on materials, provided that the project qualifies as a taxable repair, maintenance or installation service.

Documentation

To claim credits or substantiate nontaxable sales, contractors must maintain proper documentation, including:

• Purchase invoices showing sales tax paid.

• Customer invoices detailing materials used or invoices indicating materials were resold as retail.

• Contracts confirming the project as a repair, maintenance or installation service.

• Form ST-124 for capital improvement projects.

•Exemption certificates from customers, as needed.
Navigating NYS sales tax rules requires a clear understanding of taxable services, capital improvements, and the ability to manage tax credits and exemptions. Maintaining thorough documentation and staying updated on tax guidelines can help contractors stay compliant and avoid penalties. If in doubt, consulting with a tax professional is advisable

Anthony P. Pokrentowski, CPA, is a tax senior manager at Dannible & McKee, LLP, a public accounting firm with offices in Syracuse, Auburn, Binghamton and Schenectady, NY, and Tampa, FL. The firm has specialized in providing tax, audit, accounting, and advisory services since its inception in 1978. For more information on this topic, you may contact Anthony at (315) 472-9127 or visit online at www.dmcpas.com.