What High Performing Contractors Get Right About Safety in the Age of AI

By Wael Khalil, CSP, Vice President/Director of Safety

 In construction, injury prevention is not a matter of chance. It is the direct outcome of how work is planned, supervised, and executed in the field. The contractors that consistently outperform their peers do not treat safety as a compliance exercise. They treat it as an operational discipline, no different from production, scheduling, or cost control.

As artificial intelligence continues to enter construction workflows, there is increasing interest in its role in improving safety performance. The reality is straightforward. AI can enhance safety systems, but it cannot replace the leadership, accountability, and execution required to prevent injuries.

Safety Is Built into the Work, Not Added to It

The most effective contractors do not rely on safety manuals or periodic training sessions to manage risk. Safety expectations are embedded directly into daily operations.

Hazards are identified during pre-task planning, not after an incident occurs. Staffing decisions reflect competency and workload, not just availability. Supervisors are responsible for how work is executed in the field, not just whether it gets completed.

This approach aligns with long standing guidance from OSHA. Effective safety programs are structured systems integrated into how work is performed, not documents created for audits.

In practice, this means safety is planned, budgeted, and reviewed with the same rigor as production.

Reporting Drives Prevention If It Actually Works

Workers closest to the jobsite see risk first. The difference between average and high performing contractors is how that information is handled.

In strong organizations, hazard reporting is simple, expected, and acted upon. Issues raised in the field are addressed quickly. Corrections are visible. Feedback loops are closed.

Where reporting systems fail, it is rarely because workers are unwilling to speak up. It is because they do not see action. Once that trust breaks down, reporting stops, and risk becomes invisible until it results in injury.

Companies that get this right turn near miss reporting into a predictive tool rather than administrative noise.

The Best Contractors Fix Hazards at the Source

There is a clear divide in how companies approach risk. Lower performing organizations rely heavily on rules and personal protective equipment. Higher performing contractors focus upstream.

They eliminate hazards where possible. When elimination is not feasible, they engineer them out.

This includes improving rigging systems, optimizing site layout, reducing manual handling, and designing work to remove exposure rather than control it after the fact.

This follows the hierarchy of controls, beginning with elimination and engineering solutions before relying on administrative controls or protective equipment.

Protective equipment remains important, but it is not the primary solution to systemic risk.

They Measure What Actually Prevents Injuries

Most companies track lagging indicators such as recordables, lost time, and severity rates. These numbers are important, but they only describe what has already happened.

Top performing contractors focus on leading indicators. These include hazard corrections completed within target timeframes, supervisor safety observations, preventive maintenance completion, and documented field level coaching.

Supervisors are evaluated based on actions and follow through, not just injury counts. Injury rates are outcomes. The drivers are behaviors, systems, and execution.

Leadership Presence Is Not Optional

There is no substitute for visible leadership in safety performance.

In high performing organizations, safety is discussed in operational meetings, not isolated safety briefings. Executives visit jobsites. Supervisors engage crews in real conversations about risk. Workers are involved in planning and problem solving.

Leadership sets expectations. Workforce involvement builds credibility. Without both, safety programs remain theoretical.

 

 

 

Where AI Fits and Where It Does Not

Artificial intelligence will improve construction safety. It can analyze large datasets to identify trends earlier, flag high risk activities, monitor conditions through computer vision, provide predictive insight, and optimize scheduling to reduce fatigue exposure.

For organizations that already have structured safety systems in place, AI has become a force multiplier. It enhances visibility and accelerates decision making.

However, AI is only a tool.

It does not walk the jobsite.
It does not correct hazards.
It does not hold supervisors accountable.
It does not build trust with the workforce.

Organizations with weak safety fundamentals will not fix those deficiencies by adding technology. Without management commitment, AI becomes another system generating reports that no one acts on.

Technology strengthens discipline. It does not create it.

The Bottom Line

Contractors that consistently keep employees injury free share a common approach. They integrate safety into operations, encourage meaningful reporting, prioritize eliminating hazards at the source, track leading indicators, and demonstrate visible leadership.

Artificial intelligence can enhance these efforts and improve efficiency, but injury prevention depends on disciplined execution and sustained management commitment. Technology supports the safety effort; it does not replace it.

For more information on Safety in the Age of AI please reach out to a Lovell representative at 1-800-556-8355.

New Overtime Reporting Requirements Under the One Big Beautiful Bill Act for 2026

Kaitlyn L. Mariano, CPA, Tax Partner, Dannible & McKee, LLP

The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced an individual deduction for qualified overtime compensation. Effective for tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the portion of pay that exceeds their regular pay, such as the “half” portion of “time-and-a-half” compensation required by the Fair Labor Standards Act (FLSA) and reported on a Form W-2, Form 1099 or other specified statement.

The deduction has both an annual limitation based on the taxpayer’s filing status and a phaseout based on the taxpayer’s modified adjusted gross income. For 2025, employers were not required to separately report qualified overtime compensation. However, beginning in 2026, employers and other payers will be required to separately report qualified overtime compensation to all recipients.

Qualified Overtime Compensation Defined

Qualified overtime compensation is federally recognized as overtime compensation paid to an individual that exceeds their regular rate of pay (and must be at least time-and-a-half) for hours worked beyond 40 hours in a single workweek, as defined by the FLSA. Overtime pay that is not tied to the FLSA 40-hour rule, such as bonuses, daily overtime or contractual premiums, does not qualify for the new tax deduction. When an employee receives FLSA overtime compensation for hours worked over 40 hours per week, the deduction applies only to the premium (the extra half-time pay) portion above the regular hourly rate.

For example, Employee A’s standard hourly wage is $20, and A works 10 hours of overtime, computed at time-and-a-half. With the overtime rate calculated as $30 per hour ($20 x 1.5), the premium portion of A’s pay is $10 per hour. Since the overtime pay meets the definition of qualified overtime compensation, the overtime deduction available to A is $100 ($10 x 10 hours).
If an individual is eligible for overtime under the FLSA and the employer pays more than the required time-and-a-half rate, the qualified overtime compensation is limited to the portion of the overtime that is required. For example, Employee B’s standard hourly wage is $20, and B works 10 hours of overtime, calculated at $40 per hour (double-time). Since only time-and-a-half pay was required, the overtime premium qualifying for the deduction remains $100. The additional $100 received does not qualify.

Deduction Limits and Phaseouts

Beginning in 2025, the maximum deduction is $12,500 for single filers and $25,000 for joint filers. To qualify for the full deduction, the taxpayer’s modified adjusted gross income (MAGI) must be under $150,000 for single taxpayers or $300,000 for joint filers. The deduction is reduced by 10% for every $1,000 above the threshold and is fully phased out once MAGI reaches $275,000 for single taxpayers or $550,000 for those married filing jointly. The deduction is not available to married taxpayers who file separate tax returns. It is reported as an above-the-line deduction on the taxpayer’s personal income tax return and applies only to federal income taxes, while payroll taxes are unaffected.

Reporting Requirements and Best Practices for Employers

For 2025, the IRS provided penalty relief for employers who did not separately report qualified overtime pay on employee W-2 forms or other statements. Employers are encouraged to provide employees with a separate accounting of their qualified overtime compensation to assist them in calculating their deduction for 2025. Employees seeking guidance can also be directed to IRS Notice 2025-69, which provides several methods for calculating the amount of qualified overtime compensation.

Beginning in 2026, employers will be required to separately report qualified overtime compensation on Form W-2, Box 12, using code “TT.” The IRS will update Forms W-2, 1099-NEC, and 1099-MISC to assist employers and other payers in the separate reporting of an individual’s qualified overtime compensation. Employers are encouraged to work with their payroll providers to determine the best reporting practices so that payroll companies can properly furnish the necessary information going forward. Establishing accurate tracking procedures will be key to meeting the new reporting obligations.

If you have questions regarding the qualified overtime deduction discussed above and your business or personal income tax situation, we encourage you to contact us.

Kaitlyn L. Mariano, 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. She has over 14 years of experience overseeing tax engagements for a variety of clients with a focus on construction, manufacturing and high-net-worth individuals. For more information on this topic, contact our firm at (315) 472-9127 or visit us online at www.dmcpas.com.

Contractual Risk Transfer in Construction: Managing Contractor Liability Through Effective Insurance and Risk Allocation

By Kirsten Shepard, CIC, CISR Elite, CRM and Brett Findlay, ARM, CRIS

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Construction is built on coordination and shared effort. Owners, general contractors, subcontractors, and suppliers work together to complete a project successfully. But when something goes wrong, that coordination can quickly expose contractors to unexpected risk if responsibilities are not clearly defined.

For contractors, contractual risk transfer is one of the most effective tools for managing that exposure. More than legal language, it is the framework that determines responsibility, insurance response, and whether a single incident becomes a long-term financial issue.

WHAT CONTRACTUAL RISK TRANSFER REALLY MEANS

Contractual risk transfer aims to place the financial burden of certain losses on the party with the greatest ability to prevent or manage those risks. These contracts establish how risk is shared among project participants and who is held accountable, should an incident occur.

From a risk management perspective, several provisions have a major impact on outcomes: indemnification clauses, insurance requirements, additional insured provisions, primary and non-contributory wording, and waivers of subrogation. Individually, each provision plays a role. When aligned, they help ensure risk is borne by the party best positioned to control it. When misaligned, they can unintentionally push liability onto parties with little involvement or ability to prevent the loss.

WHY CONSTRUCTION IS ESPECIALLY VULNERABLE

In construction, risk typically flows downhill. Owners look to general contractors, general contractors look to subcontractors, and subcontractors may look even further down the chain. When contracts are properly structured, this system works as intended and responsibility follows the work.

Problems arise when contracts are vague, overly broad, or inconsistent with insurance coverage. Contractors may then find themselves defending claims caused by others, leading to higher insurance costs, strained business relationships, reduced bonding capacity, and difficulty securing coverage for future projects.

THE LIMITS OF STANDARD CONTRACTS

Many contractors rely on industry-standard agreements, assuming they provide balanced protection. While these forms are widely accepted, they are not automatically equitable. Contracts often incorporate other documents by reference, such as prime contracts, specifications, or project manuals.

When a contract incorporates another agreement, all referenced terms become enforceable. Contractors who have not evaluated the entire contract structure may unknowingly accept risk far beyond their role on the project.

INDEMNIFICATION AND INSURANCE

Indemnification provisions define who pays when a loss occurs. Fair indemnification language generally limits responsibility to losses caused by a contractor’s own negligence or the actions of parties under its control.

Insurance is what funds indemnification obligations. Reviewing coverage requirements early helps ensure policies align with contractual commitments and reduces the risk of coverage gaps.

GETTING AHEAD OF RISK

Contractual risk transfer should be treated as a strategic business decision, not an administrative task. Reviewing contracts carefully, involving legal counsel, and aligning insurance coverage with contractual obligations before work begins can help contractors protect what they have built.

The best way to prevent that is to slow things down on the front end. Reviewing contracts, asking questions about unclear language, and understanding how responsibility is being assigned can help avoid surprises later. Involving your insurance broker and legal counsel before work begins makes it easier to spot gaps between contract requirements and actual coverage.

Contractual risk transfer is about making sure the risks you take on are fair, manageable, and tied to the work you control, so one claim doesn’t put your business or livelihood at risk.

About the Authors

Kirsten Shepard is a Senior Risk Management Consultant at OneGroup specializing in contractual risk transfer, working with construction firms to evaluate contract language and risk allocation before projects begin.

Brett Findlay is Senior Vice President and Construction Practice Leader at OneGroup, advising construction businesses on insurance and risk management strategies across Central New York.

Preparing Professional Services Firms for the Age of AI

BY K.C. ROBERTS

Artificial intelligence is no longer a speculative technology reserved for large tech companies—it is rapidly becoming a foundational tool across industries. For professional services firms—law, accounting, consulting, marketing, engineering—the implications are profound. AI is reshaping how work is performed, how value is delivered, and how clients evaluate expertise. Firms that treat AI as a peripheral experiment risk falling behind; those that approach it strategically can enhance efficiency, deepen client relationships, and unlock new revenue streams.

The first step in preparing for AI is shifting mindset. Many firms still view AI as a threat to billable hours or a novelty that can be delegated to IT. In reality, AI is a force multiplier. It automates routine, time-consuming tasks—document review, data analysis, research synthesis—freeing professionals to focus on higher-value advisory work. The firms that succeed will not be those that resist AI to preserve legacy models, but those that redesign their services around it.

A practical starting point is workflow analysis. Firms should conduct a disciplined audit of their core processes to identify where AI can drive measurable gains. In legal practices, this may include contract analysis and due diligence. In accounting, it may involve audit procedures or financial forecasting. In consulting, AI can accelerate market research and scenario modeling. The goal is not wholesale replacement of human expertise, but targeted augmentation—reducing friction in workflows while maintaining professional judgment as the differentiator.

Equally important is data readiness. AI systems are only as effective as the data they are trained on and operate within. Professional services firms often sit on vast amounts of proprietary data—client records, case histories, financial models—but much of it is unstructured or siloed. Preparing for AI requires investing in data governance: organizing, cleaning, securing, and standardizing information so it can be leveraged effectively. Firms that build strong data infrastructure will have a significant competitive advantage, as they can generate insights others cannot.

Talent strategy is another critical dimension. AI does not eliminate the need for skilled professionals; it changes the skill set required. Firms should prioritize AI literacy across all levels—not just technical staff. Partners and senior leaders need to understand AI capabilities and limitations to guide strategy and client conversations. Mid-level professionals should learn how to integrate AI tools into their daily work. Junior staff, often the most adaptable, can become power users and internal champions. Training programs, workshops, and hands-on experimentation should be embedded into the firm’s culture.

At the same time, firms may need to bring in new roles—data scientists, AI specialists, or “legal technologists” and “fintech analysts” depending on the sector. However, hiring alone is insufficient. The real value comes from cross-functional collaboration, where domain experts and technologists work together to design solutions that are both technically sound and commercially relevant.

Client expectations are evolving just as quickly as internal capabilities. Increasingly, clients expect faster turnaround times, data-driven insights, and cost efficiency. AI enables firms to meet these expectations, but it also raises the bar. If one firm can deliver a detailed analysis in hours instead of days, that becomes the new standard. Firms should proactively communicate how they are using AI to enhance service delivery—not as a gimmick, but as a demonstration of innovation and commitment to client outcomes.

Pricing models may also need to evolve. Traditional hourly billing structures can be at odds with AI-driven efficiency. If a task that once took ten hours now takes two, billing purely on time may undervalue the outcome or create client skepticism. Forward-looking firms are exploring value-based pricing, fixed fees, or hybrid models that align compensation with results rather than effort. This transition requires careful planning but can ultimately strengthen client trust and profitability.

Risk management and ethics cannot be overlooked. AI introduces new considerations around data privacy, bias, accuracy, and accountability. Professional services firms operate in environments where trust and compliance are paramount. Firms must establish clear governance frameworks for AI use—defining what tools are approved, how outputs are validated, and who is responsible for oversight. Transparency with clients is essential; they should understand when and how AI is being used in their engagements.

Cybersecurity is another area of concern. Integrating AI tools often involves handling sensitive data, sometimes through third-party platforms. Firms must ensure that their cybersecurity protocols are robust and that any AI vendors meet stringent security and compliance standards. A single breach can undermine years of reputation building.

Leadership plays a decisive role in this transformation. AI adoption cannot be driven solely from the bottom up. It requires clear vision and commitment from firm leadership, including investment in technology, training, and change management. Leaders must articulate why AI matters to the firm’s future and create an environment where experimentation is encouraged, and failures are treated as learning opportunities.

Finally, firms should view AI not just as an efficiency tool, but as a catalyst for innovation. Beyond improving existing services, AI can enable entirely new offerings—predictive analytics, real-time advisory, personalized client insights. These capabilities can differentiate a firm in crowded markets and open new avenues for growth.

In conclusion, preparing for AI is not a one-time initiative; it is an ongoing strategic imperative. Professional services firms must rethink workflows, invest in data and talent, adapt pricing models, and establish strong governance. Those that take a proactive, integrated approach will not only navigate the disruption but emerge stronger—delivering greater value to clients in a rapidly evolving landscape.

AI Generated, Edited by K.C. Roberts

Changing the Mindset of Educators; The Importance of a Four-Year Construction Curriculum in Public High Schools

Earl R. Hall, Executive Director, Syracuse Builders Exchange

A four-year construction industry curriculum in public high schools represents a strategic and forward-thinking investment in both students and the broader economy. For students who intend to enter the workforce immediately after graduation, such a program provides a structured pathway to sustainable, well-paying careers with excellent benefits, while addressing critical labor shortages across New York’s construction sector.

The construction industry continues to face a significant skills gap driven by an aging workforce and insufficient numbers of trained young professionals entering the trades. A comprehensive high school curriculum would supplement traditional courses such as math, English, science, social studies, etc.  In addition, by introducing students to construction fundamentals early we can progressively build their competencies over four years. Rather than viewing post-secondary education as the only viable path to success, this approach validates skilled trades as a respected and practical career option.

A well-designed four-year program should be aligned with student development. In the first year, students can explore foundational concepts such as safety protocols, basic tool usage, and an overview of construction careers. This early exposure is critical for helping students assess their interests and aptitudes. The second and third years can then deepen technical knowledge in areas such as carpentry, electrical systems, plumbing, blueprint reading, and construction technology. By the fourth year, students should be engaged in advanced, hands-on projects, internships, or cooperative work experiences with local contractors or trade organizations.

One of the most significant advantages of such a curriculum is its emphasis on experiential learning. Construction is inherently practical, and students benefit from applying theoretical knowledge in real-world scenarios. This hands-on approach not only reinforces technical skills but also cultivates essential soft skills such as teamwork, problem-solving, time management, and communication. These competencies are highly transferable and valued across all sectors of the workforce.

Additionally, integrating industry-recognized certifications into the curriculum enhances employability. Credentials in areas such as OSHA safety standards, equipment operation, or specific trade skills provide students with tangible proof of their capabilities upon graduation. Employers are more likely to hire candidates who can demonstrate both knowledge and certification, reducing onboarding time and training costs.

From an economic perspective, implementing a four-year construction curriculum strengthens local and regional labor markets. Communities benefit from a steady pipeline of skilled workers who are prepared to contribute immediately to infrastructure projects, residential development, and commercial construction. This is particularly important in areas such as central New York, which is experiencing extraordinary growth, which is anticipated for the next 20 years.  Workforce shortages can and often will delay critical projects such as those in the educational, commercial, medical, and industrial sectors, in addition to increasing project costs.

Equally important is the role such programs play in student engagement and retention. Traditional academic pathways do not always resonate with every student. A construction-focused curriculum offers a relevant and tangible learning experience that can re-engage students who might otherwise feel disconnected from school. By providing a clear link between education and career outcomes, schools can improve graduation rates and better serve diverse learning styles.

These programs also promote equity by offering accessible career pathways that do not require significant financial investment in post-secondary education. Students can graduate with marketable skills and no debt, positioning them for immediate income generation and long-term career growth. For many families, this represents a practical and attractive alternative to the rising costs of college.

A four-year construction industry curriculum in public high schools is not merely an educational enhancement, it is a workforce development necessary if central New York is to take advantage of the abundance of extraordinary economic development opportunities, driven by the private sector. By equipping students with technical expertise, industry credentials, and real-world experience, such programs empower graduates to transition seamlessly into meaningful employment and contribute important services to central New York. At the same time, they address critical labor shortages, support economic development, and redefine the value of skilled trades in today’s economy.




Turtle: Building on a Century of Industrial Partnership

By Bari Faye Dean

For more than 100 years, Turtle has been a steady partner to contractors through every wave of industrial transformation. Since its founding in 1923 with a single truck in Lower Manhattan, the company has guided customers from the era of early electrification to today’s age of energy modernization and intelligent infrastructure. Turtle now serves customers throughout the United States and Puerto Rico.

What hasn’t changed is Turtle’s core commitment to being a consistent, reliable partner who listens to contractors’ needs and designs solutions tailored to real-world challenges.

In fact, this customer-first approach has been the foundation of Turtle’s success for over a century, and it continues to shape the company’s growth in Central and Western New York.

‘Customer-obsessed’ Vision Fuels Entrepreneurial Growth in Central, Western NY

When Turtle entered the Syracuse market, it started with a clean slate. Since 2021, under the leadership of Wendy Buchholz, vice president, Sales, the office quickly grew into a thriving regional hub. Buchholz brought decades of experience in manufacturing, infrastructure, and energy solutions, and, perhaps even more importantly, deep local relationships.

“I had the advantage of coming from a manufacturing background, so I understood both sides of the relationship,” Buchholz said. “When I joined Turtle, I went back to people who had trusted me for years. This business has always been about relationships, and I knew we could build something special by listening first and selling second.”

Her philosophy of prioritizing relationships over resumes has defined her leadership style. “As we continue to build our team, I will always choose someone with the ability to build strong relationships over someone with years of electrical background. You can teach technical knowledge, but you can’t teach the ability to listen, connect, and earn trust,” she said. “At Turtle, we are customer-obsessed. Our focus is always on meeting the client’s needs. We are growing by making sure all of our team members believe in our mission.”

That emphasis on trust and accountability has resonated throughout the Turtle team. “Wendy’s leadership style and experience has had a significant impact on how the sales team approaches contractor partnerships,” said Marco Arguinzoni, Inside Sales. “She leads with a balance of accountability and support, making sure the team has both the structure and the confidence to succeed. This has helped us build stronger, trust-based relationships with contractors by focusing on consistency, clear communication, and solutions rather than just transactions.”

End-to-End Support for Contractors

Turtle’s value extends well beyond procurement. The company engages across the full project lifecycle, from early design and value engineering through layout planning, prefab, kitting, staging, and on-time delivery. These services give contractors greater schedule reliability, reduce jobsite handling, and maximize labor efficiency.

Make no mistake about it, these are critical advantages in a market where skilled labor is scarce.

“Contractors today don’t need cookie-cutter solutions,” Buchholz said. “Every job is unique, and our role is to adapt to whatever the customer requires. We take the time to understand what our customer really needs and customize a plan that helps them finish faster with less stress on their crews.”

That adaptability is matched by a deep service mindset, explained John Sica, Manager of Inside Sales. “What I believe customers value most from Turtle is our service. We’ve been a service-driven, customer-first company for 102+ years. Salespeople have the autonomy to make decisions in real time that allow us to provide more immediate service. On top of that, our specialty departments, including Switchgear, Lighting, EV Charging, Panel Shop, and Energy set us apart from the competition. When a company works with Turtle, they’re getting a solutions partner with years of knowledge and experience.”

Embracing Technology and Digital Tools

Turtle’s evolution has always meant adapting to the latest technology. Recent investments include a newly designed website at Turtle.com, Shop Turtle, an upgraded eCommerce platform, and Turtle Express, an on-demand delivery service with SMS updates. The company has also adopted an AI-powered quoting tool, Canals, that dramatically accelerates bid turnaround.

Buchholz said this is a key factor that fuels Turtle’s ability to remain nimble, ahead of the curve, and always putting customers first. For example, quotes that used to take hours are now turned around in minutes. “We have come to realize these tools aren’t replacing relationships; they’re strengthening them. They give us more time to focus on what matters most: helping our customers succeed.”

Inside Sales Associate Jaime Purish-Conrad experienced that firsthand. “Turtle’s AI tool for inside sales allows us to quickly identify options that will best suit our customers’ needs. Things are moving at a faster pace these days and Canals is a real game-changer for us,” Purish-Conrad said. “Embracing AI is already helping Turtle stand out from its competition.”

Certified Partnership with Added Value

As a certified Woman-Owned Business Enterprise (WBE), Turtle also helps contractors meet compliance requirements and strengthen bids for public and private projects. Beyond the designation, the certification reflects Turtle’s broader commitment to inclusion and opportunity, values that resonate across the construction industry.

“Diversity isn’t a checkbox for us, it’s a core value “Buchholz said. “Our WBE certification is important because it opens doors for our contractor partners. But at the heart of it, it’s about making sure opportunity is shared, and that we bring new perspectives into every project.”

Powering the Future of New York

With New York leading the transition to cleaner, smarter energy, Turtle is playing a pivotal role in projects ranging from EV charging infrastructure to energy-efficient power distribution systems. The company’s expertise spans commercial, industrial, and residential markets, ensuring contractors are well-positioned to meet evolving codes and grid demands.

“The opportunities in Central and Western New York are enormous,” said Buchholz. “From semiconductors to food production to the expansion of EV infrastructure, contractors in this region are at the center of it all. Turtle is here to make sure they have the tools, materials, and support they need to lead that growth.”

Investing in People, Technology, and the Region

Turtle is fully invested in Central and Western New York, making ongoing commitments in talent, tools, and technology. The company is aligning with growth in industries such as semiconductors, food production, and

 large-scale construction, ensuring contractors have a 

reliable partner for both today’s opportunities and tomorrow’s challenges.

“Turtle hasn’t become the company we are today, with over 1,000 employees and growing, through an acquisition. We built this operation organically,” Buchholz said. “That means we’re 100 percent vested in this marketplace. Every investment we make, whether in people, technology or infrastructure, is with the long-term success of Central and Western New York in mind.”

A Reliable Partner for What’s Next

Turtle recently launched a new website and the main message on the homepage says it all: “Powering What’s Next…”

Ultimately, Turtle’s evolution reflects its core belief: success comes from being customer-centric, adaptable, and future-focused, Buchholz maintained. For contractors in Central and Western New York, Turtle is more than a distributor, “we are a trusted partner helping our customers deliver projects with precision, efficiency, and confidence.”

At the end of the day, contractors are looking for more than materials. Buchholz concludes: “They want a partner who shows up, listens, and solves problems with them. That’s who Turtle has been for more than 100 years. And, that’s who we’ll continue to be as this industry continues to evolve.”

For more information about Turtle, visit Turtle.com

The Impact of Artificial Intelligence on the Future of Construction Estimating

Earl R. Hall, Executive Director, Syracuse Builders Exchange

The construction industry is entering a transformative era where artificial intelligence (AI) is set to redefine traditional estimating processes. Accurate project cost estimation has always been a critical factor in the success of construction projects.  AI technologies, particularly those involving machine learning and predictive analytics, are poised to enhance the speed, precision, and efficiency of estimating, enabling contractors to remain competitive in an increasingly data-driven market.

Enhancing Accuracy Through Data-Driven Insights

Although many contractors today utilize estimating software, traditional estimating relies heavily on human judgment, historical data, and manual analysis. While experienced estimators bring valuable expertise, human error and time constraints can affect accuracy. AI algorithms, by contrast, can process vast amounts of historical cost data, project specifications, and market trends in seconds.

Machine learning models can identify patterns that humans might overlook, such as subtle correlations between design choices and cost impacts. For example, AI can detect how changes in material supply chains or labor availability in specific regions of New York State influence costs. This level of predictive precision allows estimators to develop more reliable budgets and contingencies, reducing the risk of overruns.

Automation of Repetitive Tasks

One of AI’s most immediate impacts will be the automation of routine estimating activities. Tasks such as quantity takeoffs, data entry, and comparison of vendor quotes can be handled by AI-powered tools. Optical recognition systems can read and interpret blueprints or BIM (Building Information Modeling) files to automatically extract material quantities and specifications.

By automating repetitive functions, estimators can allocate more time to strategic decision-making, negotiation, and client communication activities where human judgment and relationship skills remain critical.

Integration with BIM and Project Management Systems

AI’s synergy with various BIM platforms will further enhance estimating accuracy and collaboration. By linking AI-powered estimating tools directly to BIM models, any design modification can instantly trigger an updated cost estimate. This real-time feedback loop empowers architects, engineers, and owners to make informed decisions earlier in the design phase, when changes are less costly to implement.

Integration with project management software can also enable continuous monitoring of actual costs versus estimates during construction. AI can flag deviations in real time, allowing for proactive adjustments rather than reactive corrections.

Predictive Risk Analysis

AI’s predictive analytics capabilities extend beyond cost estimation into risk forecasting. By analyzing historical project data, AI can highlight potential risk factors such as weather-related delays, supply chain disruptions, or labor issues. Estimators can then incorporate these risks into cost and schedule forecasts, creating more resilient and realistic bids.

This proactive risk assessment can also improve contractor-client relationships by fostering transparency and demonstrating preparedness for unforeseen challenges.

Market Competitiveness

In a competitive bidding environment, the ability to produce accurate, detailed estimates quickly is a significant advantage. AI not only shortens estimating timelines but also enables firms to analyze multiple bid scenarios with ease. Contractors can compare design alternatives, procurement strategies, and schedule adjustments to determine the most cost-effective approach.

Over time, companies that adopt AI in their estimating workflows will likely outperform those relying solely on traditional methods, as they will consistently deliver bids that are both competitive and financially viable.

Challenges and Considerations

While the benefits are substantial, implementing AI in construction estimating is not without challenges. The accuracy of AI models depends on the quality and quantity of data available. Many construction firms will need to invest in digitizing historical records and standardizing data formats. There may also be resistance from experienced estimators who are skeptical of AI’s reliability or concerned about job displacement.

Addressing these concerns will require clear communication that AI is a tool to enhance, not replace, human expertise. Training programs that upskill estimators in AI-assisted workflows will be essential.

Conclusion

AI’s integration into building construction estimating represents a major leap forward in efficiency, accuracy, and strategic capability. By automating routine tasks, enhancing data-driven decision-making, and enabling predictive risk analysis, AI empowers contractors to deliver more reliable bids and manage projects more effectively. While adoption will require investment in technology, data management, and training, the long-term benefits in competitiveness and project success make AI a critical factor in the future of construction estimating.

Edited by Chat GPT

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

Sheats and 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 on projects in upstate New York and in New York City.  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 to get your money from.  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 the project was completed and accepted.  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 foreclose a lien.  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.

Lastly, there is a little known provision in New York’s General Obligations Law that requires private owners to file a copy of the payment bond with the county clerk.  Failure to do so may result in the private owner paying some of your legal fees.    

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 if you are facing a nonpayment situation.

Understanding the New CPAP Program Effective October 1, 2025

Steven Bell, Vice President, Lovell Safety Management Co., LLC

If you’re a contractor in New York, you’ve likely heard of the Construction Classification Premium Adjustment Program (CPAP). For years, CPAP has provided a way for contractors who pay higher-than-average wages to receive premium credit on their workers’ compensation policies. The goal has always been simple: rewarding employers who invest in skilled, highly compensated workers.

Beginning with policies effective October 1, 2025, and later, the New York Compensation Insurance Rating Board (NYCIRB) is rolling out a redesigned CPAP. These changes will impact on how credits are calculated, how data is collected, and how contractors can ensure they don’t miss out on valuable premium savings.

Lovell is committed to making sure our contractor clients understand the changes, meet the new requirements, and receive every dollar of credit they’re eligible for. Here’s what you need to know.

Why the Change?

The old CPAP process relied heavily on employers filling out applications and submitting wage information once a year. Participation wasn’t as high as it should have been, and the single wage threshold didn’t always reflect the realities of today’s construction market.

The NYCIRB redesigned CPAP to:

  • Increase participation by making it automatic through the audit process.
  • Shift the burden to carriers, reducing paperwork for contractors.
  • Better compensate wage differences by applying credits at the class code level, not across the board.

In short: this is a modernization of CPAP that should make it easier for more contractors to benefit.

What’s Changing in CPAP

Here are the key updates contractors need to keep in mind:

  • No More CPAP Application
    You won’t have to apply for CPAP anymore. Instead, carriers (like NYSIF) will gather wage and hour data during your audit and submit it to the NYCIRB automatically.
  • Credits Based on Annual Payroll
    Instead of looking at a single quarter, credits will now be based on your entire year of payroll data, making results more accurate.
  • Class Code-Specific Wage Thresholds
    Gone are the days of one-size-fits-all wage tables. Credits will now be calculated for each eligible class code, using average hourly wages compared to prevailing NYS Department of Labor rates.
  • Estimated Credits at Quotation
    For the first time, carriers will calculate an estimated CPAP credit up front at the time of quotation, provided you submit the required data.
  • Final Credit Determined at Audit
    Just like with other parts of your policy, the final CPAP credit will be determined after the annual audit when your actual payroll and hours are verified. NYCIRB will finalize the number, and it will be applied at that point.

How Contractors Can Secure Their CPAP Credit

While CPAP is now built into the system, there are still important steps you’ll need to take to make sure your estimated credit is applied before your audit.

Deadlines Matter

To have your estimated credit applied and your policy rebilled before audit, you must:

  • NYSIF policyholders must submit your CPAP estimate within 6 months of your policy’s effective date.
  • If you miss this deadline, your credit will only be applied once the final audit is completed.

What You’ll Need to Submit

To calculate your estimate, contractors will need to provide:

  1. Total payroll (straight time only) for all class codes.
  2. Number of employees for CPAP-eligible class codes and/or
  3. Average hourly wage for each CPAP-eligible class code on the policy.

 

 

Two Submission Options

Lovell and NYSIF are making it simple:

  • Complete the Excel spreadsheet provided by Lovell, or
  • Use the NYSIF Online CPAP Estimator.

How Lovell Is Helping

At Lovell, we know how valuable these credits can be for contractors. That’s why we’re taking a proactive approach:

  • Advance Notices – About 60 days prior to renewal, we’ll be sending notices (with the payroll spreadsheet attached) to clients who may qualify.
  • Hands-On Guidance – Our team will be available to help you complete the spreadsheet, use the estimator, and ensure your data is submitted correctly.
  • Ongoing Support – If there are any discrepancies between your estimate and what NYCIRB calculates at audit, we’ll coordinate with NYSIF on your behalf.

The bottom line: while CPAP is changing, you won’t have to navigate it alone.

What Contractors Should Do Now

Right now, no action is required. But as October 1, 2025 approaches, contractors should:

  1. Stay tuned for updates. Lovell will continue to provide guidance as NYCIRB finalizes implementation details.
  2. Gather payroll records. Accurate data will be the key to securing your CPAP credit.
  3. Be ready to respond. When you receive Lovell’s notice and spreadsheet, complete it promptly so you don’t miss the six-month window for an estimated credit.

Why This Matters for Contractors

Construction margins are often tight, and workers’ compensation is a significant expense. CPAP credits can add up to real savings—sometimes thousands of dollars annually—for employers who pay competitive wages.

The redesigned program is intended to make those savings more accessible and better aligned with today’s labor market. By working with Lovell and providing the right data on time, you can make sure you capture every bit of credit you deserve.

 

Final Thoughts

The new CPAP program is a positive change for New York contractors. It reduces paperwork, provides more accurate credits, and ensures high-wage employers are rewarded. But the new system also comes with new deadlines and data requirements that can’t be overlooked.

Lovell is here to guide you every step of the way—from sending the right forms to coordinating with NYSIF and ensuring your credit is applied.

Effective October 1, 2025, CPAP changes the game. Make sure you’re ready to play —and to save.

If you have questions about how these changes may impact your business, don’t hesitate to reach out to a Lovell representative at 1-800-556-8355.

 

Don’t Let Hackers Delay Your Projects

OneGroup

Cyberattacks threaten your business operations, revenue stream, intellectual property, client data, and reputation. Protect your company from digital hazards.

In the construction industry, cybersecurity is no longer just an IT issue, it’s a business continuity issue. As firms adopt digital tools like project management software, drones, smart machinery, and cloud-based collaboration platforms, they become increasingly exposed to cyber threats. Construction companies often manage large volumes of sensitive data, including architectural plans, financial records, employee information, and client contracts. A breach can disrupt job site operations, delay timelines, compromise safety, and damage relationships with clients and subcontractors.

Cyberattacks are relentless. A 2024 Cloud Security Report by Check Point revealed that 73% of cybersecurity teams received 10 or more security alerts daily; 61% reported security incidents in the past year. Hacked once? Expect a return visit. According to IBM’s 2022 Cost of a Data Breach Report, 83% of companies experiencing a data breach were hit multiple times.

The cost of recovering from a cyberattack is more than paying a ransom. In 2024, cybercriminals hacked Change Healthcare, compromising the health data of one-third of Americans. Change Healthcare paid the hackers $22 million in Bitcoin to unlock data, without a guarantee that the data hadn’t been copied or sold. Experts estimate it will cost nearly $3 billion to cover fines, credit monitoring services, lawsuits, reputational damage, and network reconstruction. That’s on top of the ransom.

Cyberattacks can lead to bankruptcy. A 157-year-old college in rural Illinois was forced to close after a ransomware attack locked them out of their data. They never recovered from the lost enrollments and network damage.

Why the Construction Industry Is a Growing Target

Construction companies are increasingly vulnerable to cyber threats due to their reliance on digital tools, mobile devices, and cloud-based project management platforms. From blueprints and bid documents to subcontractor agreements and client data, the industry handles sensitive information that hackers find valuable.

Key vulnerabilities include:

  • Project delays and downtime: A ransomware attack can halt operations, delay timelines, and inflate costs.
  • Third-party risk exposure: Construction firms often work with multiple vendors and subcontractors, increasing the risk of compromised networks.
  • IoT and smart equipment: Connected devices on job sites can be entry points for cybercriminals.
  • Employee data and payroll systems: Hackers target HR systems for personal data and financial access.

What a Cyber Insurance Policy Can Do for Your Business

A well-structured cyber policy can help with:

  • Lost income due to project delays
  • Customer and subcontractor data breach notifications (legally required in most states)
  • Free credit monitoring for affected individuals
  • Legal defense, state fines, damages, and settlement awards
  • Reputational damage and public relations support
  • Restoration of computers, mobile devices, and networks
  • Technology improvements to prevent future hacks
  • Ransomware attacks
  • Breach response plans

OneGroup can help you decode complex cyber jargon and match you with a customized policy tailored to the construction industry.

Apply in Confidence

Insurance companies will scrutinize your cybersecurity. They’ll ask questions like:

  • How much personal and project data do you collect and store, including paper files?
  • Do you use antivirus software, strong passwords, and multifactor authentication?
  • Do you have a written cyber incident response plan?

Don’t let cyber threats bring your construction projects to a halt. Protect your business, your data, and your reputation before an attack hits. Reach out to Brett Findlay by calling 315-480-7027, he’ll connect you with a specialist who understands the unique risks facing contractors and can help you prepare with confidence.