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Building Connections
Bimonthly Newsletter of Chicago CFMA
August 2018
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Letter from the President
It's hard to believe kids are heading off to school, and NFL football is back - both signs that summer is coming to a close. We are not done just yet! This week is the chapter's golf outing at Maple Meadows golf club. Are you registered? Golf or join us for dinner; there is still time to participate in this annual event.
Proceeds from last year's golf outing provided scholarships for 10 interns this summer. This success would not happen without everyone who participates in the outing. Click on the link in this newsletter to learn how you can support the golf outing.
Following the golf outing we turn our attention back to education and the Midwest Regional Conference on September 23 & 24. With a new location at the Westin Lombard, and revamped day and a half format, the committee has been busy preparing what may be the best conference to date. A 1/2 day CFM Challenge kicks-off the conference on Sunday, followed by a welcome reception in the evening. Monday brings a full-day of quality education. It all adds up to plenty of opportunity for CPE!
In the June newsletter I asked you to
Reach Out, Branch Out, Top Out. I am happy to share that last month 62 attendees
Reached Out at the Summer Social for some ping pong, giant Jenga, great food, and an opportunity to spend time with fellow CFMA members. On September 13, FCL Builders will host a Casino Night fundraiser to benefit CFMA's Construction Industry Alliance for Suicide Prevention (CIASP). This is an opportunity to
Reach Out and help others, while having a good time. As a chapter, we are proud to support efforts to advance awareness of suicide in the construction industry, and support those working to make a difference.
Now, I invite you to
Branch Out by helping our programming committee setup next year's calendar of monthly educational events. What type of content would you like included? Please share your ideas with
myself or Bill Reidinger prior to our October planning session.
Last but certainly not least -
Top Out. The Chicago Chapter is on the verge of becoming the largest chapter in the country. To help us get there, along with CFMA's Annual 18 month for the price 12 promotion starting Mid - September, the chapter is offering new members who join between now and October
31st, free monthly education programs through March 2019. Do you know someone who would benefit membership in CFMA? Now is the time! More details are listed below.
I look forward to the day I will share that Chicago is the largest chapter. In the meantime, I look forward to seeing each of you at the golf outing, September 13 fundraiser, and Midwest Regional Conference!
Tamara Kilty
Chapter President
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Featured Platinum Sponsor
Candidate for Subcontractor Default Insurance
Note - The chapter's October program is a discussion on Subcontractor Default Insurance. As a lead-in to that program, you can determine whether your firm is a good candidate for this coverage.
Is your general contracting company or significant project (yes, project-specific policies are available) a good candidate for Subcontractor Default Insurance "SDI?" The following questions will help guide you:
- Can we commit to enough volume? SDI policies are large deductible insurance programs that require minimum annual commitments of $50 million (some SDI insurers require $100 million annual minimum) in sub cost enrollments in order for the financial metrics to work. Typically, programs run for an initial period of 2-3 years. For project-specific policies, $50 million in subcontractor cost enrollments is also the minimum starting point.
- Can the costs be absorbed by the project owner(s)? These policies are paid for through project funds and GC's must have the ability to get the owner to agree to fund this coverage. Depending on volume commitments the premium can be anywhere from .7% - 1.3% of sub costs. The funding commitment usually becomes the biggest hurdle for most looking at this coverage.
- Are we willing to do the prequalification work? SDI policies require that the GC perform the prequalification analysis and sub enrollments, although there are options to outsource this task. The GC must be willing dedicate the time, energy and costs around the administration of the SDI program, once the approval parameters are defined.
Should the answers to these basic questions lead to the next step, it is time to get into the details. The underwriting process includes an assembly and review of information of all areas of your operation. Expect an extensive interview process by the underwriting team as a final piece of the qualification process. The market for this product is limited, with 4 insurers offering this coverage.
A well-managed SDI program can be a positive risk-mitigation tool for GC's that meet the criteria and commit to the process. Keep in mind that losses, especially early in the policy period can require the GC to come out of pocket, so proper qualification of subcontractors is critical. However, a successful SDI program over time can become an independent profit center and pay healthy dividends to the GC.
Want to learn more? Contact
Bill Reidinger, Assurance Agency's lead representative with CFMA's Chicago Chapter.
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This Week!
There is still time to join us for golf or dinner!
Individual Golf: $210/$230 with wristband
Foursome: $800/$900 with wristbands
Dinner Only: $50
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2018 Intern Program
This summer marked the 11th year for the chapter's Intern Program. We are proud to share that ten member companies hosted interns through the program funded by the Annual Golf Outing. The program provides incentives to construction industry employers to help prepare students to be responsible, competent and ethical financial leaders in the construction industry by offering internship opportunities.
This year's company recipients are:
| Aldridge Group |
Pepper Construction |
| Bear Construction |
Pernix Group |
| Charles Hall Construction |
Power Construction |
| FCL Builders |
Rose Paving |
| MYR Group |
Superior Construction |
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September 23-24, 2018
Westin Hotel, Lombard
The 2018 Midwest Regional Conference Committee is pleased to present another outstanding schedule of educational sessions that offer something for all levels of Construction Financial Professionals. Register for one or both days.
Check-in/Registration: Opens at 1:30 pm
CFM Challenge: 2:00 - 6:00 pm
Attendees will be divided into "companies" and role-play during this interactive, scenario-based game. Acting as CEO and CFMs of JB Company, teams collaborate to select and manage various strategic initiatives, while facing changing market conditions and unforeseen situations.
This session provides a unique learning experience, using entertainment to enhance collaboration, improve communication, promote decision-making skills, and develop team building. CPE Available!
Welcome Cocktail Reception: 6:30 - 9:30 pm at LaBarra
Food and bar will be included for paid conference attendees, speakers and exhibitors. Additional guests may attend the reception for a fee of $50. A shuttle from the Westin Hotel will be provided.
7:00 a.m. Check-in & Breakfast Buffet
8:00 a.m. - 5:30 p.m. Conference Sessions, Keynote Luncheon & Exhibitor Showcase
Participating Chapters
Chicago - Fox Valley - Madison - Milwaukee
Southwest Michigan - Quad Cities - Western Michigan
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Now is the time to introduce your colleagues to membership in CFMA! For a limited time, new members who will not need to renew until March 2020! To sweeten the pot, new members who join the Chicago Chapter between now and October 31, 2018, will receive free attendance at regular monthly education programs through March 2019.
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Charles Schmitt - Anson Industries
Deborah Strecken - Schaefer Electric, Inc.
Daniel William Keller - Kelso-Burnett Co.
Brian Kieffer - Zurich
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Summer Social at SPiN Chicago
July 26, 2018
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