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A&M Graphics: Revolutionizing Visual Spaces in CNY and Beyond

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By Elizabeth Landry

In high school, Matthew Ferguson was deeply invested in art, taking every available class in Auburn, NY. Initially aiming to become an art teacher, his path shifted when he began working at a local sign shop. Ferguson’s experience in the sign shop later combined with a short career in sales and managing wireless company stores like Verizon, where he delved into technology during the dawn of the smartphone era. The result of Ferguson’s varying experience was a fused passion for art and technology, which, along with a knack for problem-solving and customer service, led him to where he is today: Creative Director and President of A&M Graphics, a company he helped found in 2009 and of which he has been the sole owner for the past four years. 

Located in Auburn, A&M Graphics has carved out a niche in what the team has dubbed “Premium Graphic Environments,” offering a full range of products and services from Vinyl Wall Murals and Wall Coverings to Dimensional Letters and Logos, ADA and Wayfinding Signage, Custom Displays and Exhibits, 3M DI-NOC Architectural Films, and 3M FASARA Window Films. On the other end of A&M Graphics’ business, the team has also proved themselves as the premier Vehicle Wrap and Fleet Graphics provider in the area. No matter what kind of service the team at A&M Graphics is providing, the central goal is always the same: to provide the highest quality of design, printing, fabrication, and installation as illustrated in their tagline: “design. create. deploy.”  This tagline, along with the company’s logo, was recently trademarked by Ferguson and is all fueled by passion, creativity, and strong relationships with fantastic clients. According to Ferguson, this has been true since the very beginning of the business, which will be celebrating 15 years this coming fall. 

“Since day one, we’ve forged a reputation for not just providing quality work but also continuing to set the bar for top levels of quality and service in what we do and what we offer. We’ve continued to build relationships based on these values, and that has really gotten us to where we are today,” said Ferguson. 

Crafting Impactful Visual Experiences

Many of the different mixed-media services A&M Graphics provides come together to form premium graphic environments that transform entire spaces, including office spaces and whole campuses, and significantly boost a brand’s visual communication. Ferguson explained how the creativity, expertise, and passion behind the team’s large-scale graphic installations play a large role in how the company sets itself apart from competitors. 

“We are so much more than just a sign shop or wrap shop,” Ferguson said. “We’ve really forged our own niche in the industry based on our passion for what we do with these premium graphic environments – centered around the creativity, time, and dedication poured into each custom project. Keeping the emphasis on creativity as part of our process and not just being a ‘feed the beast’ or ‘churn and burn’ kind of shop has always been our focus. We have definitely kept that credo the nucleus of our business.”  

Ferguson and his team recently completed several large-scale graphic installations for the Pall Corporation, a global leader in filtration solutions, at its Cortland and Long Island locations. The A&M Graphics team worked with the Pall Corporation to achieve a vibrant, high-impact space at both locations, which features a mixed-media timeline of the company’s history and legacy. Designed, printed, fabricated, and installed by Ferguson’s team, the projects took many hours of labor and weeks of creative, high-end graphic design work, ultimately achieving the Pall Corporation’s vision through the use of varying shapes and thicknesses of acrylics and the stand-out effect of the DryTac Polar Chrome material. 

Although the details and vision for custom graphic design projects can vary greatly from one client to the next, each premium graphic environment that A&M Graphics creates is intended to have a strong impact on those who enter the space. This aim remains true whether the space is intended to impress visiting clients or instill a sense of company culture with employees. Mike Durkin, Vice President of Client & Investor Relations for VIP Structures, which has been a client and partner of A&M Graphics in recent years, described how a similarly high-impact design with a very different strategy was achieved for a client in the healthcare industry.

“I toured the new Nappi Wellness Institute at SUNY Upstate Medical University, and in their MRI room, they have this panoramic image of the Adirondack mountains wrapping an entire wall that Matt and his team installed,” said Durkin. “Going to see a doctor and getting an MRI done can be nerve-wracking, but when you walk in the room and see this gorgeous image, I think it can really ease patients’ concerns – it gave me a sense of calm immediately. It’s such a better experience than walking into a room with a stale, blank white wall. A&M Graphics really listens and brings so much creativity into the solution to achieve the impact a client is hoping for. Their creativity, focus on what the client is trying to convey in the space, and delivery of a product that far surpasses expectations are what set Matt and his team apart from the rest.”

Upstate’s Nappi Wellness Institute is one of A&M Graphics’ marquee projects of the last few years. Led by project manager Todd LaFlamme, the team completed hundreds of wall murals, premium sign components, and art pieces throughout the five-story new construction in the heart of Syracuse. “SUNY Upstate and VIP Structures are two important relationships that we feel very fortunate to be able to service,” commented Ferguson. A&M Graphics also completed Wall Murals and Signage for VIP Structures’ new downtown home at “The Post.” 

Nationally Recognized for Excellence

Among A&M Graphics’ clientele are manufacturers, contractors, architects, healthcare organizations, and the higher education sector, and the team is often brought into larger organizations’ projects early during the formation of architectural plans to ensure direct involvement from the start and a smooth result. Having completed numerous projects over several years for Central New York-based organizations such as SUNY Upstate University Hospital and VIP Structures, A&M Graphics has also begun to receive interest from national and even global organizations due to Ferguson’s drive to achieve and maintain important quality standards. 

The company holds two certifications from 3M, which is considered the graphics industry leader and sets the highest bar of quality for graphic application businesses. Ferguson first earned A&M Graphics’ designation as a 3M Certified Graphics Company, which placed the company on 3M’s national registry, signifying that A&M Graphics is not only one of the best in the business but is fully insured and abides by certain business practices and a code of ethics. Later, Ferguson trained, tested, and received 3M’s Endorsed Architectural installer certification, which deems A&M Graphics a certified installer for 3M’s architectural line, including DI-NOC architectural finishes, glass finishes and window films. Both certifications were achieved at 3M’s global headquarters in St. Paul, Minnesota and they put A&M Graphics on the radar of national organizations that only look to 3M’s national registry for companies they can trust to provide top-quality, reliable graphics services. For Ferguson, pursuing these certifications was non-negotiable. 

“We’re nationally connected with industry peers and always keeping our finger on the pulse with the latest and greatest technologies, materials, and techniques. We’re constantly finding the best methods and products to bring back home to our clients, and being 3M Certified is a big part of that, so obtaining the certifications for our business was very important. We pursued and earned these certifications, and they really show that A&M Graphics is committed to being among the best in our industry,” Ferguson explained.

Ferguson has now started taking this a step further, recently participating in industry training demonstrations for different manufacturers in Boston and Chicago.  

People at the Heart of the Vision  

Another way A&M Graphics is naturally expanding beyond Central New York is through Ferguson’s involvement within his industry on a national level. Whether by attending trade shows or simply connecting with his peers around the country, Ferguson expressed a passion for bettering the graphic industry at large. 

“I’m very involved in my industry on a national level – not just for myself and my business, but as a way to advocate for our industry as a whole. I’m trying to help my peers both locally and nationwide by making sure we keep moving the goalposts as the industry expands and helping to grow it even further,” stated Ferguson. 

Building relationships with industry peers in different parts of the country mirrors Ferguson’s value of strong relationships with both clients and members of his team, who he calls the “DREA&M TEA&M.” For Ferguson, it’s those genuine relationships and pride in his team’s excellence that really drive his passion for the work he does every day. 

“At A&M Graphics, we’re all about relationships,” Ferguson emphasized. “Whether that’s our hometown relationships or the accounts we service nationwide. Everything is handled the same way – the right way – and we really enjoy the relationships we’ve forged and that we continue to forge. The relationships I’ve made with my amazing staff, who are more like family to me, are also what I enjoy the most about coming to work each day. They really are a dream team because they’re all professionals who have worked at a high level in the industry before we all came together and who work hard to produce spectacular outcomes that blow our clients’ expectations away.” 

Future Expansion and a New Location 

With great relationships to build on and new ones to be made, the future looks bright for A&M Graphics. The exciting next phase for the business will be bolstered by a brand-new facility being built in partnership with VIP Structures that is planned to be completed in the latter part of 2024. The new space will more than double A&M Graphics’ current square footage, which will allow the company to add additional team members as well as increase the amount of equipment in fabrication and installation areas. The facility will also sit on a plot that allows for future expansion. Ferguson stated that the new location will be an important next chapter for the company. 

“The new space is going to be really impressive, and it will be unlike anything currently in our area. I couldn’t be more excited about where the company is headed and about what the new space will allow us to do,” said Ferguson. 

Certainly, with a leader like Ferguson and a focus on providing high-value premium graphic environments for its clients, A&M Graphics will continue to find success in the future. As Durkin described Ferguson, “He’s a natural-born leader, and it’s clear that his team is all-in on delivering his vision for the company. With Matt and his team, there really is an art form to the design, the production, and the installation they provide. They really do care about the impact of the end product and not just mass-producing for the sake of closing a product order. That’s why I’m really excited to continue to work together and see what we can accomplish.” 

NONCOMPETE AGREEMENTS BANNED NATIONWIDE

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By: Monika Herrera, Sheats & Bailey, PLLC

FTC BAN

On April 23,2024, the Federal Trade Commission (“FTC”) issued its final ruling banning noncompete clauses across the United States. The FTC’s new rule comes into effect September 4, 2024. 

The FTC defines noncompete clauses as follows: a term or requirement in an employee contract that forbids, fines, or prevents a worker from (i) looking for or taking a job in the United States with another individual, where the job would start after the employment that contains the term or condition ends; or (ii) continuing to run a business in the U.S. following the conclusion of the job that contain the term or condition.       

Prior to this act noncompete clauses acted as a barrier to shield businesses from employees who might seek to exploit confidential information gained through their employment to start a competing business.  Noncompetes were common practice across many industries to protect their trade secrets and to keep a competitive advantage. The FTC’s new rule strips businesses of this protection.

The FTC’s ruling bans new noncompetes for all workers including senior executives and invalidates prior noncompetes for all workers, except senior executives. Existing noncompetes for senior executives remain enforced. The FTC defines senior executives as employees that earn at least $151,164 and are in policy making positions. Policy making position refers to a business’ president or chief executive officer or officer equivalent with final authority to make policy decisions over the enterprise such as restructuring, company expansion through mergers or acquisitions, and resource allocation.

In addition, noncompete agreements entered into by a person pursuant to a bona fide sale of a business entity are exempt from the ban by the FTC. According to the FTC, a bona fide sale is one in which the seller has a reasonable opportunity to negotiate the terms of the sale and is made between two independent parties at arm’s length. State law will control the noncompetes permitted by the bona fide sale exception.

IMPACT ON CONSTRUCTION BUSINESS

The construction industry relies on skilled talent and strong relationships. The FTC’s new rule is broad and applies to all employees and independent contractors.  Noncompete clauses have allowed contractors to protect their proprietary information and methods, things like bidding practices/formulas and project management techniques.

Contractors who relied on noncompete clauses to prevent workers from leaving the company and utilizing the information gained while working at the company must now find alternative ways to protect confidential information.

The ban on noncompetes could leave contractors vulnerable to the sharing of their valuable information regarding customers and business development strategies. To stay ahead of the curve companies should look into alternative strategies for protecting proprietary information. Intellectual property protections such as trade secrets are legal tools for protecting valuable information. In order to satisfy trade secret requirements businesses should consult with an attorney to enact the necessary measures.  

Although noncompete clauses are no longer valid there are other restrictive covenants that can be used.  A non-disclosure or non-solicitation agreement can still protect certain aspects of the business.  A non-disclosure agreement keeps workers from revealing confidential information learned through their employment to other companies, but it does not prevent them from quitting to work for a rival company or starting their own business with that knowledge in mind.  A non-solicitation agreement prohibits an employee from leaving the company and taking other employees or clients with them after their departure. Both NDA’s and non-solicitation agreements can lessen the harm caused by the FTC’s new rule.

Businesses that wish to safeguard themselves moving forward should consider adding these kinds of clauses to their employee contracts and handbooks.  Consult an attorney to guarantee compliance with the new rule and prevent such revisions from appearing as a noncompete.  

MOVING FORWARD

In order to be compliant with the ruling, employers must provide clear notice in writing to their employees that they are no longer bound by noncompetes by September 4, 2024, and should remove noncompete clauses from all employment documents. There is a lot of resistance from companies and business groups to the FTC’s authority to remove all active noncompete agreements from millions of employee contracts. There are currently two lawsuits pending, one of which is from the U.S. Chamber of Commerce to contest the enforceability of the new rule.

At this point in time businesses should monitor the progress surrounding the ruling and whether a court will delay its enforcement. In the meantime, employers should understand how this rule affects their businesses and seek protective measures.   

 

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.

Prevailing Wage – What Do I Need to Know?

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Lori A. Beirman, Director of Audit Quality, Dannible & McKee, LLP

Micron Technologies is slated to build a semiconductor fabrication facility in Onondaga County. The project may receive, among other things, up to $5.5 billion in tax incentives from Albany’s “Green CHIPS” program. This program requires construction projects to comply with prevailing wage rules.

Prevailing wage laws are designed to level the playing field for local workers. These laws apply to public projects and require contractors to pay most of their workers a set minimum wage of no less than the local “prevailing wage” rate. This rate is often based on wages and benefits paid to union employees. By standardizing compensation rates across union and nonunion worksites, the higher standards and benefits obtained by unions through collective bargaining agreements are extended to a much larger base of workers.

For some background, federal construction projects are covered by the Davis-Bacon Act, which is a federal law that protects construction workers’ wages on government-funded projects. It covers all 50 states. In addition, 32 states have their own prevailing wage laws for state government-owned construction projects. The New York State Department of Labor (NYSDOL) is responsible for calculating the prevailing wage for state and local government projects, except for New York City, where the city comptroller publicizes prevailing wage rates. While the U.S. Labor Department determines prevailing wage by conducting periodic surveys of area employers, New York State does not conduct a wage census. Instead, the NYSDOL copies the terms and conditions of construction union contracts, for each trade and region. This difference is due to the assumption that at least 30% of the workers in every trade in every part of the state belong to a trade union. Because these “prevailing” wages are often based on union contracts, including union fringe benefits, they can equal or even exceed a worker’s hourly cash pay on private work. In other words, in addition to the basic hourly cash pay rate, prevailing wage schedules include supplements (fringe benefits) that vary based on the craft, trade or occupation. Prevailing wage supplements may be provided to workers in the form of a cash payment (wages), or through irrevocable contributions to a fund, plan or program, or any combination of the two. Deciding which method of payment for supplements to use can be complicated and should involve discussions with a financial professional.

To further support local workers and boost the local economy, lawmakers continue to work to broaden the definition of public work and expand the reach of the prevailing wage to more projects across the state. For example, since prevailing wages drive up costs, it may encourage contractors to have more work performed off-site. To counteract this issue, in 2017 and again in 2023, lawmakers worked to pass laws to apply prevailing wage rules to certain off-site fabrication of goods used on a public works job site. In February 2022, New York State passed a law relating to the payment of prevailing wage for work involving the delivery to and hauling of aggregate supply construction materials on a public works job. Additionally, state and federal lawmakers have proposed legislation to broaden the definition of public works projects to include those paid for in whole or in part out of public funds.

Due to these constant changes in the law, it is important for construction contractors in New York to stay up to date with the laws and their responsibilities, not just for their employees but also for the employees of their subcontractors. According to Section 198 (e) of the New York State labor laws, contractors are liable for all claims on unpaid wages, benefits and wage supplements for workers employed by their subcontractors.  Therefore, it is critical for contractors to perform due diligence on their subcontractors. Recordkeeping is critical to ensure compliance with prevailing wage laws in New York. Proper documentation of employee hours worked ensures contractors adhere to the law and assists in any possible investigations or audits conducted by the NYSDOL.

Prevailing wage laws support good wages and benefits, thereby helping to close racial, gender and geographical pay gaps, promote quality work and improve the value received for each taxpayer dollar. However, for employers, prevailing wage laws can be confusing and complex. The repercussions of noncompliance can be devastating to any business. Therefore, it is important for employers to have a clear understanding of prevailing wage laws and to know when to ask for assistance.

Lori A. Beirman is the director of audit quality at Dannible & McKee, LLP, a public accounting firm with offices in Syracuse, Auburn, Binghamton and Schenectady, NY, and Tampa, FL. She has over 23 years of experience in audit, reviews and compilations in a variety of industries, such as construction, manufacturing and professional service firms. For more information on this topic, you may contact Lori at (315) 472-9127 or visit online at www.dmcpas.com.

State of the Construction Industry

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Earl R. Hall, Executive Director, Syracuse Builders Exchange

 Considering the multi-year, $2.5 billion Route 81 project, and the highly anticipated start of Micron’s 20-year, $100 billion semi-conductor chip fabrication project in Clay, the media and elected officials have used the word “megaprojects”.   These unusual megaprojects garner great interest and typically lead to questions about the impact of these projects on society.  As a result, people have asked me about how such megaprojects impact the construction industry in central New York.

To begin with, it is important to understand that the construction ecosystem, although resilient, is fragile.  The tripartite balance that exists between project owners, contractors and labor has never experienced projects of this magnitude happening at once, so forecasting the impact on the industry may be difficult.  Making assumptions is what a good actuary does to assist in predicting the future, so I will make assumptions to provide better context.

Assumption #1 – Labor

The lack of labor continues to plague the industry, which in some cases may result in a contractor’s inability to complete a project on time.  Failure to complete projects on time may contractually lead to liquidated damages.  Delivering labor to Micron will certainly be a challenge as the regional industry today does not have such capacity; however, one can assume much of the labor for Micron will be imported from other regions of the United States.  As a result, I do anticipate the project will have the labor force necessary to achieve project delivery requirements, but certainly there will be labor challenges.  Moreover, regional contractors serving traditional clients, such as hospitals, universities, industrial and institutional facilities may not be materially impacted to the extent of not having available labor.

Assumption #2 – Project Schedules

Project owners’ delivery schedules are becoming increasingly aggressive, both in the public and private sectors.  Often the contractor’s ability to achieve the schedule is dependent upon a wide variety of items but having adequate labor and timely delivery of construction material, such as concrete, is essential to achieving schedule goals.  Although much of the labor on the megaprojects may come from out of state, one should assume meeting project owners’ future aggressive schedules may be more challenging due to the potential labor pressures associated with megaprojects.

Assumption #3 – Wage Growth

Anticipating future regional wage growth is paramount for construction contractors and project owners alike.  How will the megaprojects impact future wage growth?  Over the past two years, construction industry employees have enjoyed advantageous conditions leading to above average wage growth.  I expect this environment to continue, with wage adjustments far exceeding inflation.  Additionally, many employers are rewarding their best employees with additional compensation, benefits and other incentives to remain with their employer.

Forecasting future regional wage growth will be difficult as it remains unknown the incentives required to attract labor to Micron’s project.  While Micron’s 20-year project has a Project Labor Agreement which contains the unions’ wages and fringe benefit schedules, I anticipate such wage schedules will be the “minimum wage” requirement for this project.

“What does this all mean?”

The most asked question is, “How will these megaprojects impact other project owners?”  This question is most difficult to answer; however, one can assume:

  • Continued exceptional craftsmanship from labor.
  • Continued exceptional project management, execution and delivery from construction industry employers.
  • Renewed focus on the tripartite relationships.
  • Increased cost of labor and associated increased cost of construction project budgets.
  • Less compressed project delivery schedules.
  • Billions of dollars in new construction spending for new projects surrounding and supporting these megaprojects.
  • Continued labor shortages.
  • Enhanced Career and Technical Education programs in public schools.
  • Increased construction in the housing market.
  • A revitalization of the central New York region.

These two megaprojects, along with additional capital investments from both the public and private sectors, will directly fuel the incredible economic development central New York will experience over the next decade.  It will be essential that the construction industry, and society in general, take advantage of these opportunities and overcome any of the barriers associated with change. 

Steering Through New York’s Construction Safety Landscape

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Wael Khalil, VP & Director of Safety & Health. Lovell Safety Management

In the challenging construction landscapes of New York State, employers face the formidable task of navigating through terrain complicated by the steep costs of insurance. This situation is largely exacerbated by the rigorous absolute liability laws that pertain to falls. For years, these falls have not just been a leading cause of significant injuries within the construction industry but have also escalated the financial implications of such incidents to new heights. Constructing a high-rise building in New York can incur higher expenses compared to other states, largely due to the elevated costs of insurance. Despite legislative initiatives that mandate comprehensive training on proper fall protection measures, these types of accidents continue to pose a persistent threat to the wellbeing of construction workers and the economic stability of their employers.

Drawing on three decades of experience in the health and safety field, I have witnessed firsthand the evolution of job site safety. Today’s construction sites are undoubtedly safer than those of 30 years ago, a testament to the progress achieved through relentless advocacy, improved standards, and technological advancements. However, our quest for “absolute safety” is an ongoing endeavor.

An analysis by The National Institute for Occupational Safety and Health (NIOSH), published in September 2017 and titled “The construction FACE database — Codifying the NIOSH FACE reports,” sheds light on fall-related fatalities. The findings reveal that since 1982, approximately one in five individuals documented in the Construction FACE Database (CFD) succumbed to injuries within their first two months on the job. Notably, 75% and 43% of the reports recommended the implementation of safety training and the installation of protective equipment, respectively.

Yet, a detailed examination of job sites plagued with safety violations uncovers a recurring issue: the failure of employers to enforce established safety protocols. It becomes evident that while education and training are crucial components, they alone do not complete the puzzle. The most significant gap lies in the enforcement of known safety regulations—a duty that falls squarely on the shoulders of employers. As per NYC Department of Building, as of January 2023, falls constituted approximately 70% of all construction-related incidents, yet New York City imposes the most comprehensive employee training regulations in the state and in most cases the country.

The legal framework, particularly embodied by New York State’s Sections 240 and 241 laws, looms large over the construction sector, highlighting the critical necessity for employers to intensify their focus on safety enforcement. This could encompass an array of proactive strategies, such as conducting surprise inspections, initiating unannounced audits, and engaging third-party evaluators for impartial site assessments. Such measures not only ensure adherence to safety standards but also cultivate a culture of diligence and accountability.

The message is unequivocal: Employers must elevate their management of job site safety to mitigate risk exposure. In an industry marked by considerable stakes, the repercussions of complacency can indeed be profound.  As we continue to strive for a safer tomorrow, the commitment to rigorous enforcement of safety protocols remains the beacon guiding our efforts. The path to reducing the financial and human costs of construction accidents is clear, and it begins with a steadfast dedication to safety at every level.

For more information on this issue and other safety related concerns on the job site 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.

 

NYS 2024 Workers’ Compensation Updates

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By: Brett Findlay, Sr. VP, Business Risk Specialist

There have been significant changes applicable to New York State workers’ compensation in 2024. However, none have been as impactful as the 2022 change to the experience modification rating formula (or EMR), which all experience-rated policyholders have now seen the effects of. The volatility of loss impacts to policyholder EMR’s has been significant. There may be some help on the way, through rate decreases.

For the ninth consecutive year, an aggregate rate decrease is on the horizon. Furthermore, the New York State Assessment was dropped again in January. Also, the impacts to individual workers’ compensation policies from the changes to the experience rating (EMR) formula have been experienced by all policyholders since our last update.

In a press release dated May 9, 2024 the New York Compensation Insurance Rating Board (NYCIRB) filed its annual loss cost indication with the New York State Department of Financial Services. An approved and published filing for the expected decrease of 9.0% of the overall loss cost level should be confirmed and announced by August 1, 2024. The change in rates is effective on policies renewing on or after October 1, 2024.

The impact of the loss costs, or rates, will vary depending on each individual classification code. For an understanding of the potential impact to your business and individual class codes utilized on your policy, please feel free to reach out to OneGroup using the contact information below.

It is important to note that these rate changes will not go into effect on any individual policy until October 1, 2024. If your effective date is before that date, you will have to wait until your policy renewal before any potential rate changes apply. Regardless of when your effective date is, you should know the exact rate changes to your classifications sooner rather than later. It’s important to not only forecast the future costs of your program, but also to develop a plan for your upcoming renewal.

In January, the New York State Assessment saw another decrease. This year the assessment dropped from 9.8% to 9.2% in 2023, even moreso from 10.2% in 2022, and 11.8% in 2021. Overall, there’s been a nearly 20% decrease in the aggregate cost to policyholders since 2021.

As far as the new formula to determine Experience Modification Ratings, or EMR’s, those changes went into effect on October 1, 2022. The formula is significantly different than it has been in the past and is affecting policyholders who’ve experienced workers’ compensation losses from both a frequency and severity standpoint. OneGroup has been monitoring the impact to policyholders, hosted multiple educational seminars, and developed materials to explain the changes in detail. The formula change has impacted many businesses, both positively and negatively. For more information on how you have been or will be affected, please do not hesitate to contact us directly.

So, what does this mean for New York State contractors? For any individual questions and/or concerns, please do not hesitate to contact Brett Findlay, Sr. Vice President of Business & Construction Risk.

OneGroup has a team of specialists, dedicated to risk management and construction industry specific insurance issues. We’re able to serve as a resource to your organization for all your construction specific questions and concerns. OneGroup takes great pride in being at the forefront of industry trends and assisting others where we can. You can find out more about us here: www.OneGroup.com or about our construction expertise, http://www.OneGroup.com/business-insurance/unique-industry-solutions/construction-industry/.

For more information please contact Brett Findlay, Senior Vice President Business Risk Specialist at (315) 280-6376 or BFindlay@OneGroup.com 

G.M. Crisalli & Associates, Inc.: Celebrating 35 Years of Excellence in Construction Contracting

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By Elizabeth Landry

When Gary Crisalli first began his own general contracting business in Syracuse in 1989, he was working out of a two-bedroom apartment in Solvay. After the first year and for the next seven years, he and his team operated the business out of a residential home they had renovated to meet their business needs before finally settling into their long-term and current location on Hiawatha Boulevard West. From humble beginnings, Crisalli took on projects in almost every industry, growing the business’s portfolio and demonstrating its commitment to excellence while meeting the needs of a diverse array of clients.

Today, G.M. Crisalli & Associates, Inc. (GMCA) is one of the top general contractors in Central NY, having completed approximately 1,700 projects over the course of the business. With a team of about forty people, the organization works on projects across the entire Northeastern United States, from Wisconsin to Maine to Maryland.

As the company celebrates its 35-year anniversary this year, this important milestone serves as a time to reflect on the growth and accomplishments over the years and to look ahead to the many projects still to come. Between Crisalli, President and Owner, and Rocco Paone, Associate, who joined the company in 1991, the team at GMCA has over one hundred combined years of experience in construction contracting and has achieved much success by focusing on meeting the needs of clients for every project, every time.

Diverse Clients and Industries

Working as a mason when he was just sixteen, and through his college years, Crisalli worked with a large engineering firm, an architectural firm and a construction contracting company before venturing out on his own. Obtaining such valuable field and office experience in his teens and early twenties allowed GMCA to take on any job in many different industries from the first day of business.

“I’ve been telling people since the day we went into business that we build everything except roads and bridges,” said Crisalli. “Due to a past client that Rocco had worked with, GMCA obtained a contract on a very large construction site in our first year. The Solvay cogeneration power plant in Solvay. We were contracted to do a small job at first. The contract exponentially grew as we performed our base contract.  We were asked to work in many areas of the plant. We ended up being there for three years doing anything they wanted us to do, from asbestos abatement to assisting with the walk-down and commissioning of the boilers. That project was a blessing to our company, but it was also a project we knew we could perform well. From day one we did anything that was requested of our company by our client.  The company philosophy is to acquire the knowledge, expertise, and experience to meet any of our client’s construction needs. That philosophy got us in the door and has retained our relationships in many different industries.”

The team at GMCA has completed projects for clients in both the public and private sectors, in industries including education, military, commercial, industrial, medical, retail and grocery, as well as building restaurants and places of worship. Having completed numerous original-build and renovation projects for such a diverse range of clients, Crisalli has a long list of favorite jobs the team has worked on over the years, starting with brick removal and replacement for Onondaga County at the Civic Center in 1991. That same year, the team built the first neuro angiogram room at Upstate Medical Center, which led to numerous build and renovation projects for the health center in the following decades. In 1996, GMCA built the flagship Franklin Covey store in New York City across from the Rockefeller Center. In the early-to-mid 2000s, the company assisted with the building and construction management of the Clarence Jordan Vision Center for Mercy Works in Syracuse, the Island Health & Fitness Center in Ithaca, the Abundant Life Discipleship Training Center and the FedEx distribution center, both in East Syracuse, various five-story college housing projects, and Athletic clubs.  One of the most unique projects GMCA has completed is building the penguin exhibit at the Rosamond Gifford Zoo.

Perhaps the most stand-out project in Crisalli’s list of favorites is the Blodgett Dream Center, a sprawling, one-of-a-kind library located within one of the most impoverished schools in the Syracuse City School District. “Many different artisans worked on this project,” Crisalli explained. “It has a spaceship with twenty-nine computers, a Renaissance-themed area with beautiful arches, a prehistoric-themed space with dinosaurs, a Roman Amphitheater where James Earl Jones read to the Blodgett children on the opening day of the library, and a beautiful Egyptian-themed tiled wall entrance and greeting area. 

Adapting to Change

To continue meeting the diverse range of client needs over the years, the GMCA team has been able to adapt to many different settings and requirements. For Paone, working with such a wide range of clients has been one of the most enjoyable aspects of the business.

“Probably what’s been most exciting for me is meeting so many good customers and diverse clients over the years,” said Paone. “We’ve worked with so many different types of clients and we always strive to adapt to their individual wants and needs. We’ve done a tremendous amount of work in medical institutions and hospitals, which have many layers of requirements, as compared to a client who’s planning a building that’s coming out of the ground. Having the ability to adapt to our clients’ needs and re-educating ourselves for every different project has been so important.”

Alongside diverse client needs, GMCA has been successful in adapting to changes within the industries themselves, related to software, technology, communications and more. Crisalli explained how general societal changes have a large impact on contracting, procurement, and managing projects across industries.

“The construction industry has changed a lot over the years,” Crisalli explained. “Everything moves faster now because of the advancements in communications. Society has changed overall as far as how we communicate with each other from purchasing, procurement of subcontractors, materials, regulations, building systems, construction equipment and processes, just about every aspect of building for our clients.   It has been interesting keeping up with all the changes. The different changes over the years have, in turn, altered the way we approach building in many different ways and areas of the industry.  It’s all a little different than when we started out.  The building process must adapt to our client’s needs. It’s more important to plan and schedule all these items immediately following contract procurement.  Our team obtains all the knowledge necessary to plan out the entire building: pre-construction, construction, and turnover phases in the preconstruction phase of the project, prior to putting a shovel in the ground. This practice has led us in making the construction process efficient and successful.”

“The company’s greatest single asset are the people who meet, adapt, and succeed in navigating the changes to our industry. We are very successful because of our staff of smart, knowledgeable, service-oriented people.” Crisalli continued.

Of course, to keep up with all the moving parts within the contracting space as well as the diverse needs of clients, GMCA’s team needs to remain highly knowledgeable and adaptable.  This makes all the difference with clients and ongoing success. Due to a general shortage of skilled trades, this need can sometimes be challenging, but according to Crisalli, GMCA has been successful in this area because of its focus on ongoing training and education, as well as a unique company culture that combats the stress that often comes along with working in construction.

“Over the years, the training processes that we use have changed completely. Now, we train our team on software as well as procedure, making sure everyone has the skills they need to successfully execute jobs. Not only do we train our employees on our own software programs, but we also train them on our clients’ various software programs to help us assimilate into different markets. Although we make sure the team has the knowledge and training to succeed on every site, the construction industry culture can sometimes be stressful. Many of our employees have been with us for over 10 years, and they appreciate that we try to alleviate stress through working as a team and humor. We have a small company atmosphere that works. Someone is always willing to help when another person’s workload suddenly increases.   I really think that helps,” said Crisalli.

Charitable Giving in the Community

Another important aspect of the company culture at GMCA is a great sense of pride in supporting the causes of several organizations and charities throughout many communities. The company facilitated a golf tournament to support Mercy Works’ at The Clarence Jordan Vision Center last year, raising approximately $50,000. Crisalli is a past president of the Baldwin Fund, and GMCA continues to support this charity.  The company has also supported the Fellowship of Christian Athletes (FCA) every year, as well as local organizations such as In My Father’s Kitchen and Francis House.

One charitable organization that’s especially meaningful to Crisalli is Marvelous Ways International in Lakeland, Florida. GMCA supports a golf tournament for this organization each year, which was founded by a couple from Central New York, Mark and Christin Haywood. Marvelous Ways International uses different developmental programs, teams of trained individuals and innovative technology to help monitor and improve outcomes for impoverished youth in Nicaragua, Costa Rica, and Honduras. “This organization helps kids who don’t have many great options in life to succeed. They give these children and teens a hope for the future by monitoring and guiding them through these youthful years and assisting each individual allowing them to choose a path for a successful life. It’s working out well and really making a difference in the life story of many who had few options for success. I am proud we can volunteer our time and resources to help make a positive difference in the lives of others,” said Crisalli.

Looking to the Future

Having worked with an impressive list of diverse clients for 35 years and always leaning into re-evaluation of the business, learning and constructive change along the way, GMCA is moving into the future with a goal of continued progress, growth, and adaptability.

“We always try to take a snapshot of what our economy is doing – what’s hot and what’s not,” said Paone. “We’ll continue to adapt our business corresponding with changes in the economy. Everyone knows the buzzword in Syracuse – Micron – and we’re certainly keeping our eye on that industry so we can adapt our business to service that industry successfully.”

Although change is always certain, especially in the construction contracting marketplace, one thing that will continue to remain constant for GMCA is its centralized mission of focusing on client needs above all else.

“Having been in business for 35 years is a real blessing. During that time, we’ve instilled in our team a sense of slow but steady growth, and conveyed the importance of covering our bases so we can ensure the best possible outcomes for our clients,” said Crisalli. “In our industry, it really comes down to this: if you please your clients, you’ll always succeed.”

CECL Explained: What Construction Companies Need to Know

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Kaitlyn H. Axenfeld, CPA/CFF, CFE

The CECL model’s main change from current accounting rules is a requirement to incorporate forward-looking information while estimating credit losses. Construction companies typically have several types of financial assets that are subject to the ASU, including contract receivables, contract retainage and contract assets. You will now be required to forecast the total expected credit losses of these types of financial assets over the entirety of the asset’s life rather than when the loss meets the probable threshold or when incurred. This forecast is based on a wider scope of data that includes past events, current conditions, and reasonable and supportable estimates for the future. As a result, companies will have to invest more time in reviewing past write-offs, past bad debts, creditworthiness, etc., to calculate a reasonable and fair estimate for future bad debts.

A common approach to estimating future bad debts is to review aging categories for receivables. These aging categories can then be assigned reserve percentages based on delinquency, prior bad debts, knowledge of who owes what, etc. Those values are then combined to determine an entity’s allowance or reserve for bad debts.

When estimating future bad debts for financial assets subject to ASC 326, management should also evaluate and consider consumer credit risk scores, credit ratings, credit risk grades, debt-to-value ratios, collateral, collection experience, or other internal metrics.

The new standard requires enhanced disclosures to provide transparency on credit risk management, methodology, and the impact on financial statements. This enables financial statement users to assess the credit quality of financial assets and understand changes in expected credit losses over time.  

For each class of financial assets, a reporting entity should describe the credit quality indicator that it is using and then disclose the amortized cost basis of the asset, grouped by indicator.

Footnotes on an ongoing basis are required to include:

  • A description of how expected loss estimates are developed.
  • The entity’s accounting policies and methodology to estimate the allowance for credit losses.
  • Factors that influenced management’s current estimate and relevant risk characteristics.
  • Changes in the factors influencing management’s current estimate of expected credit losses and the reasons for those changes.
  • Changes to the entity’s accounting policies and reasons for significant changes in the amount of write-offs, if applicable.

CECL may not have a significant impact on a company’s allowance for credit loss, but it will require management to make new judgments and calculations to comply with the new standard. Entities should also consider updating their policies and procedures to ensure the necessary data is accurately captured. Once implemented, CECL will require ongoing monitoring to ensure that the methods and assumptions used for the initial credit loss calculations continue to reflect current conditions and variables. Forecasting should be a continuous process, and those factors will continue to evolve. 

It is also important to consider the impact of CECL when entering into new transactions or relationships, as well as when economic conditions change. CECL could negatively impact liquidity measures and ratios, which could affect lending, bonding, and other insurance.

 

Kaitlyn H. Axenfeld, CPA/CFF, CFE, is an audit 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 Kaitlyn at (315) 472-9127 or visit online at www.dmcpas.com.

Membership has its Benefits – SBE and Workers’ Compensation Insurance Safety Group #469

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Steven Bell, Vice President, Underwriting & Sales

To compete in the ever-changing and competitive landscape of the construction ndustry requires a low-cost, reliable, and comprehensive workers’ compensation insurance solution. In keeping with SBE’s mission of providing members with valuable programs and services, Lovell worked with employers in the construction industry in 1960 to create a workers’ compensation insurance safety group program. With over 64 years of history, this fully insured program known as Safety Group #469 – The NYS Construction Industry, operates on a non-profit basis, providing low upfront costs while delivering financial returns through dividends. Since its inception, Safety Group #469, has returned over $620 million in cash dividends to membership.   

What is a Workers’ Compensation Safety Group?

Safety Groups were established in New York State to serve the business community.  Safety groups are a collection of businesses who are in the same trade or industry who group together to reduce their workers’ compensation costs.  This grouping enables the members of a safety group to spread the risk of loss from the individual policyholder to all members of the group. These fully insured, not-for-profit programs combine members’ annual workers’ compensation premiums and then deduct the costs of claims and administrative charges.   Any money left over after accounting for these expenses is available for payment of a dividend.  To reduce the cost of workers’ compensation insurance, safety group managers encourage and assist members in instituting measures to prevent accidents and make the workplace as safe as possible.

Who is eligible for Workers’ Compensation Safety Group #469?

All SBE members with primary business operations in New York State are potentially eligible for Safety Group #469.  In business, occasional losses are inevitable. To ensure the success of the program, it is imperative that group members as a whole achieve good loss results.  Although eligibility extends to all members with primary operations in New York State, qualification is based on historical loss trends, underscoring the significance of a steadfast dedication to safety practices.

Recognizing the diverse footprint of businesses in the construction industry, the program can extend workers’ compensation insurance coverage to other states. This coverage enables members to manage their workers’ compensation insurance through a single invoice, simplifying the complexities associated with overseeing coverage in multiple states.

How does Membership in Safety Group #469 Benefit Construction Industry Employers?

Joining Safety Group #469 presents construction industry employers with a host of compelling advantages. Members enjoy an advance discount of up to 32.5% on their workers’ compensation insurance costs. In addition, any underwriting profits that the group earns are available to pay dividends.  The dividend for the most recent year was 27.5% of premium.    The combination of these dividends and discounts makes the program virtually unbeatable in the marketplace.  The benefits of membership are more than just financial; the safety group also provides access to industry leading safety, claim and underwriting expertise.  

 

How is Workers’ Compensation Safety Group #469 managed?

Group #469 is managed by Lovell Safety Management Co., LLC and by a committee of its members. Lovell Safety Management Co., LLC has been the market leader in managing workers’ compensation safety groups since 1936. As safety group manager for Group #469, Lovell provides comprehensive services to ensure the program’s success.    

Lovell’s team of experts provide loss prevention services to control losses, claims management services to mitigate the cost of claims, and underwriting services to ensure each member is priced at the lowest possible cost.    These services produce underwriting profits that get returned to members through upfront discounts and dividend payments. 

Summary:

The strategic partnership between the SBE and Lovell Safety Management Co., LLC serves as a testament to SBE’s commitment to providing unparalleled benefits for members. The combination of the SBE’s and Lovell’s respective expertise ensures that members can navigate the complexities of workers’ compensation insurance and the construction industry with confidence.

To learn more about Safety Group #469, please contact Lovell directly at 1-800-556-8355.

Overview of OSHA Updates in 2024

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As of January 2024, OSHA released an update to the maximum penalty costs to adjust for the cost-of-living increases over the past few years as well as changes to some of their National Emphasis Program’s. Below, we’ll outline some of those changes.

Penalty Cost Adjustments

Changes to maximum penalty costs to violations in serious, other than serious, and posting violations categories increased to $16,131 per violation. Failure to abate violations are $16,131 per day (generally limited to 30 days) beyond the abatement date. Willful or repeated violations are $161,323 for each violation. The higher gravity of the violation, the higher the cost of the fine will be. 

Types of OSHA Citations:

  • Serious: Violation of situations in which a hazardous condition could lead to death or serious harm of an employee.
  • Other Than Serious: Violation of situations in which a hazardous condition could lead to a direct and/immediate injury/illness but would not cause death or serious harm to the employee. This category also covers failures in recordkeeping, posting and electronic reporting.
  • Failure to Abate: Violation in which previously cited hazards were not brought into compliance since the previous inspection.
  • Willful: Employer intentionally disregards OSHA requirements or demonstrates indifference to health & safety of employees.
  • Repeated: Violation of a previously cited hazard. These violations were corrected at one point in time but found again in a new inspection.

It is important to note that in January of 2023, OSHA issued an expansion on their Instance-By-Instance (IBI) citations which outlines that if an employer has multiple violations, those citation fees will be individualized instead of grouped together as they might have been in the past. To give an example, if a company has multiple work sites with the same hazards identified, OSHA will cite each site with the violation, not the company as a whole. This can lead to very hefty fees for a company. 

What is an NEP?

A National Emphasis Program (NEP) is a temporary specific hazard awareness program which OSHA focuses their resources on. These hazards can be seen in the general industry or can be in targeted industries. For example, in 2021 OSHA issued an NEP on Covid-19 which covered general industry, and then was revised to focus on the healthcare industry as they were at the most risk for exposure. The NEPs will provide directives for employers to follow to ensure workers are protected from the focused hazard. OSHA inspections will typically focus on industries with the highest exposures to the hazard identified in the NEP.

What is an LEP?

In addition to a National Emphasis Program, Regional OSHA offices can develop Local Emphasis Programs (LEP) as well. For example, as of October 2023, Region II which covers NJ, NY, Puerto Rico, and VI, implemented an LEP focused on construction work sites with a purpose “to identify and reduce or eliminate hazards at local construction projects.” This LEP outlines that programmed (OSHA planned) inspections will be determined through collecting local information regarding construction projects and will identify which establishments (addresses) they will inspect. OSHA will also continue their Unprogrammed (unplanned) inspections after a trigger such as a fatality or catastrophe, complaints, or referrals.

What are the current NEPs and LEPs in place that could impact a construction site?

In addition to the LEP of Construction Work Sites:

  • NEP – Combustible Dust – started in January 2023 with no expiration date.
  • NEP – Falls – started in May 2023 with no expiration date.
  • NEP – Outdoor & Indoor Heat-Related Hazard – started in April 2022 with a planned expiration of April 2025.
  • NEP – Respirable Crystalline Silica – started in February 2020 with no expiration date.
  • LEP – Noise Hazards – started October 2019 with a planned expiration date of Sept 2024.

This names a few, but there can be more depending on the type of construction a business is doing. The OSHA.gov website lists out all the NEPs and LEPs and provides resources to comply with these emphasis programs.

An employer may not be able to avoid an OSHA inspection, but there are things that can be done to ensure the process runs as smoothly as possible. Have a plan for the event which outlines who should meet with the inspector, how to determine what the inspector needs to see and what information needs to be provided immediately.  As always, OneGroup is available to help put a plan together and/or work on safety related programs to ensure employee health and safety is prioritized. For more information contact Brett Findlay at, BFindlay@OneGroup.com, Megan Coville at MCoville@OneGroup.com, or Paula DeStefano at PDeStefano@OneGroup.com.

 

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