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AGC MA and AGC of America Take Lead on
Fighting IRS Ruling That Will Tax PPP Loans
As part of the CARES Act, Congress enacted the Paycheck Protection Program to provide more than $500 Billion in forgivable loans to small businesses to cover expenses like payroll costs in 2020. Over 5.2 million small businesses applied. However, after the loans were issued, the IRS promulgated a ruling that any expenses associated with or paid for with PPP loans that are normally tax deductible, are NOT deductible as business expenses this time. The IRS reasoning is since the PPP loans are intended to be forgiven, the agency does not feel that businesses should have the opportunity to receive a forgiven loan and a tax deduction.
According to AGC of America, it was never the intention of Congress to eliminate the tax deductibility feature, so this news comes as an unexpected financial shock to many businesses, including AGC members. Because of this adverse IRS ruling, businesses will now be faced with an unexpected federal 37% surprise tax in 2021.
A battle is now heating up for Congress to get involved and overrule the IRS and restore the tax deductibility feature. AGC of America has been hard at work and is currently leading a coalition of hundreds other business groups (construction and non-construction) to lobby Congress for a legislative fix. On December 3, AGC/A sent a letter to House and Senate leadership on Capitol Hill signed by 683 state and national trade associations, including AGC MA, urging new legislation to repeal the IRS ruling. In addition, AGC of America's lobbying has also generated 4,600 letters and over 19,000 electronic messages from AGC Chapters and Members.
Last week, AGC of America also filed a lawsuit with the SBA and Treasury Departments re: the PPP Loan Necessity Questionnaire for loans of $2 million or more. The suit is based on the premise that the questionnaire asks overly obtrusive questions, normally not asked in federal loan applications.
Locally, AGC MA Chairman Fran Colantonio is leading a charge on this. He has been joined by several AGC MA Board members in contacting their local members of Congress and our 2 US Senators. In addition, AGC MA has sent a letter to Congressman Richie Neal (D-Springfield), Chairman of the House Ways & Means Committee. Please see the below letter from Chairman Fran Colantonio urging corrective action from Congress.
Stay Tuned.
Read Chairman Fran Colantonio's letter here.
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The Massachusetts Prompt Pay Statute: A Cautionary Tale for Those Who Don't Read the Fine Print
In a recent decision likely to have a significant impact upon the way private construction projects in Massachusetts are managed, the Superior Court recently construed the Massachusetts Prompt Pay Statute in the way the Statute (Statute) was meant to be enforced, but contrary to most current construction practice.
In Tocci Building Corp. v. IRIV Partners, LLC, Boston Harbor Industrial Development, LLC and Hudson Insurance Co., (November 19, 2020, Sup.Ct. 19-405), the Court strictly construed the Statute's payment provisions against a project's owner/manager (O/M), ordering the O/M to pay the contractor the outstanding balance on several unpaid requisitions because the O/M failed to comply with certain of the Statute's requirements.
The decision involved the construction of a $3.8M building intended to house office and lab space in the Seaport. During construction, the O/M refused to pay certain portions of seven of the contractor's requisitions. In response to most, if not all the requisitions, the O/M provided an e-mail or a letter rejecting the invoices in some fashion, but did not comply with the Statute's exacting requirements for a proper response. Specifically, the Court held, "While [the O/M's responses] may have been timely in rejecting some of the Requisitions, they did not specifically reject a Requisition in dispute, did not include an explanation of the factual and contractual basis for the rejection, and did not include a certification that the rejection was made in good faith."
Notably, the Court rejected the O/M's claim that its failure to comply with the Statute's requirements were "merely technical errors". In awarding the contractor relief, the Court exercised its seldom-used authority to enter separate and final judgment against the O/M--even though other issues in the case remained unresolved. When ordering the O/M to pay the contractor's outstanding invoices, the Court reasoned that the Statute's provisions are "mandatory...and reflect a public policy to ensure that contractors receive prompt payment, or prompt and complete notice of objections to payment requests...." Equally important was the Court's holding that "whatever objections [the O/M] may have had under the Contract to the Requisitions were waived". (Emphasis Added.)
Read the full article here.
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Northeast AGC Chapters Issue Joint Letter on Regional Cooperation on COVID-19 Protections for Members
AGC MA and a group of AGC Chapters in the Northeast Region have been continually working together to keep abreast of COVID-19 regulations and trends so we can share timely information, best practices, and ideas with our member companies. While our states have employed slightly different approaches, our collective goal has been to keep construction an "essential" industry during this crisis and ensure our members have the information and resources needed to maintain safe working environments.
A hallmark of AGC is a steadfast commitment to safety, and we are proud to say that our members have embraced this call to action. This abiding commitment helps to workers safe and it keeps construction sites open for business.
The current uptick in COVID-19 cases across our region and the nation makes it clear that applying the appropriate safety protocols is more essential than ever - to keep workers and their families safe, and to support economic recovery within our communities. It is imperative to continue to implement high standards of workplace safety and encourage your employees, partners, and stakeholders to follow the applicable regulations and safety protocols required by your state.
We appreciate your efforts to date as we have evolved to serve our members in new, and mostly virtual, ways. As always, if you have questions or need additional information, please do not hesitate to contact us.
Gary Abbott, Executive Vice President, AGC of NH
Kerrie Bennett, Executive Director, AGC of RI
John Butts, Executive Director, AGC of CT
Ben Connors, President & CEO, GBCA
Dave Daquelente, Executive Director, MBA of Western Pennsylvania, Inc.
Mike Elmendorf, President & CEO, AGC NYS
Matt Marks, CEO, AGC Maine
Bob Petrucelli, President & CEO, AGC MA
Bryon Short, Executive Vice President, Delaware Contractors Association
Richard Wobby, Executive Vice President, AGC of VT
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Happy Holidays from AGC MA!
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AGC MA Member Benefits
Did you know that an AGC MA membership is firm wide? If your company is a member of AGC MA that means every employee of that company can take advantage of the wide variety of valuable benefits including programs and events, exemplary safety training, committee engagement and more.
Questions? Feel free to reach out to any one of our staff members at any time!
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AGC MA Staff Extensions
Bob Petrucelli, President & CEO - Ext. 114
Lisa Frisbie, Director of Business Development & Marketing - Ext. 115
Donna Scally, Director of Labor Relations & Employment Policy - Ext. 116 Chris Ziegler, Director of Safety - Ext. 112 Barbara Canoni, Operations Manager - Ext. 117 Kara Cady, Assistant Operations Manager - Ext. 118 Mark Lyvers, Controller - Ext. 119
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Top Women Led Businesses
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AGC MA's own, Lisa Wexler, President, Elaine Construction and Lisa Brothers, Chairman and CEO, Nitsch Engineering, named in the Top Women Led Businesses according to The Commonwealth Institute and the Globe Magazine.
The Commonwealth Institute and the Globe Magazine partner to name the most noteworthy companies and nonprofits led by women. For each organization, The Commonwealth Institute, a nonprofit that supports female business leaders, examined revenue or operating budget as well as other variables, including number of full-time employees in the state, workplace and management diversity, and innovative projects.
Congratulations!
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New Wentworth CM Professor Seeks Summer Residency
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Professor Hariharan Naganathan, a professor of Construction Technology at the University of Central Missouri, recently moved to Boston and is now on the faculty at Wentworth. He also is a recent recipient of a Scholarship/Grant from the AGC of America Education and Research Foundation to help underwrite a portion of his salary for a "Summer Residency" program with a local CM.
Each year, the AGC Education and Research Foundation conducts an Industry Residency program for Professors, which allows them to work for a summer for a contractor. Professor Naganathan applied for and was awarded the Residency Grant as a Faculty member of Central Missouri for this past summer, but was delayed a year due to COVID and his move to Boston. Now that he has moved to Boston, he is looking for an AGC MA member to connect with for a Summer 2021 Residency. The already awarded AGC of America Grant will support up to ½ of his 2021 Residency stipend.
Any interested firm is urged to contact Professor Naganathan directly. From what we understand, these programs have been very successful and there are many AGC MA members who are part of the WIT Industry Advisory Board.
Click here to read the full article and to access the Professor's Resume along with an informational flyer on the AGC of America Education & Research Foundation.
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AGC of America
Business Development Forum
The AGC Business Development Forum is a group of AGC members who are interested in learning more about business development in all sectors of the industry. The AGC Business Development Forum's mission is to advise AGC members of new market opportunities, to follow and report on trends in the construction market, and to advise members on the techniques and tools of BD. By joining the Forum you'll have access to other BD professionals from across the country in various construction sectors as well as publications, webinars and other BD resources to help increase the profit and visibility of your firm.
Looking for a way to get involved and recognized? Please contact Paige Packard today if you are interested in any of the following opportunities:
- Authoring a one-page best practice article
- Participating in an internally developed webinar
- Sharing or advertising related events or webinars hosted by other groups
- Discussing new ideas or initiatives that would benefit the Forum
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National Purchasing Partners (NPP)
Tis the season to shop and save with NPP!
Whether you would like to thank your customers or employees, NPP can help you save on holiday gifts with discounts from brands that deliver.
Members can save 20% through NPP on:
- 1-800-Flowers.com
- 1-800-Baskets.com
- Fruit Bouquets
- Harry & David
- Simply Chocolate
- The Popcorn Factory
- Wolferman's
Restrictions may apply. See mynpp.com for details.
Ready to shop - click here!
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AGC MA
Welcomes 1 new member!
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blum is the largest regional accounting, tax and business advisory firm based in New England. Drawing upon our breadth and depth of experience over the past 35 years, our team of business accountants and consultants help our clients learn from the past and interpret the present to create the future they imagine.
1 Capital Way
Cranston, RI 02910
(401) 272-5600
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What Defines Building Excellence?
AGC MA sets the standard for the industry through
exemplary programs, professional development opportunities and more.
Click on the video below to see all that we have to offer!
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 AGC MA Committee Appreciation/Holiday Celebration!
January 6 | 4:30 p.m.
Zoom
The Battle of the Committees! Join your committee comrades as we celebrate you and the holidays with a fun night of virtual trivia! Each AGC MA Committee will team up against each other to demonstrate their knowledge in things no one really cares about! The event will be filled with exciting raffle chances to include:
- Various AGC SWAG for most creative holiday beverage/cocktail, holiday clothing (sweater, hat, shoes, scarf, etc.)
- 1 Free registration to the next golf clinic at Granite Links ($85.00 Value)
- 1 Free ticket to the 2022 BWiC Awards ($135.00 value)
- Grand Prize: 1 Free Registration to either spring or summer session to the AGC MA Golf League ($250 Value)
Your donation of $10 will be awarded to the winning trivia team to donate to their charity of choice. Please name your committee in the comment section of registration.
 Getting the Most Out of Brand Perception Surveys
January 7 | 10:00 a.m. Zoom
Grab your breakfast beverage of choice and join AGC MA Director of BD & Marketing & SMPS Boston Chapter President Lisa Frisbie in an interactive conversation with a new SMPS Marketer author each month! The 45-minute session will offer attendees deeper insight into the various topics published and an opportunity to directly engage with the author.
 Casual Conversations with Kick Ass Women in Construction
January 7 | 4:00 p.m.
Zoom
BWiC invites you to join the conversation, to build connection, advance an initiative, maybe even solve a problem or two. We are honored to welcome prominent women within the commercial construction industry to share the intentional and the serendipitous, their hero's and the villain's, the opportunities captured, lost and set free, and what they spend far too much time doing, with their time. We promise, it will be worth yours. We welcome this month's featured speaker Heather Taylor, Campus Planner and Architect, Phillips Exeter Academy, Exeter, NH
 CSL Exam Prep Class January 20 | 6:00 p.m. Zoom
This class will help prepare you to take the test to obtain the Construction Supervisor License.
 Conversations With...MA State College Building Authority
January 22 | 8:30 a.m.
Zoom
Join us for our Conversations With Program with Ed Adelman, Executive Director, Janet Chrisos, Deputy Director, Amanda Forde, Director of Capital Renewal, and Leigh Warren, Capital Projects Coordinator of MSCBA.
 How AGC of America's ConsensusDOCS is Changing How the Construction Industry Allocates Risk
January 26 | 3:00 p.m.
Zoom
A discussion with our own, Ron Ciotti, Chair of AGC of America's Contract Documents Forum.
Ron's practice is focused on all aspects of the construction industry. He has substantial experience representing general contractors, construction managers, subcontractors, prefabricators, modular builders, suppliers, and owners/developers in construction-related matters, including all aspects of construction law, contractual disputes, lien work, bond claims, construction and design defect claims, bid disputes, in litigation and dispute resolution. Ron has litigated cases/issues before all levels of courts in numerous jurisdictions throughout the country, arbitrated disputes nationally, and advocated on behalf of clients using various forms of dispute resolution. He also has broad experience in construction transactional work, drafting and negotiating contract documents for all types of project delivery including, integrated project delivery and other highly collaborative delivery methods, design-bid-build, design build, CM-at-Risk, and other more traditional methods for both public and private projects. Ron was also the Chair of the ConsensusDocs committee that drafted and published the first-in-the-nation General Contractor/Prefabricator contract form. Ron routinely counsels his clients on all business aspects of planning, initiating, and completing construction related projects.
 Young Contractors Professional Institute (YCPI)
January 27 | 2:00 p.m.
Zoom
Through building booms and recessions, YCPI has continued to thrive because there's a need for it in the construction industry. Early in your career, job expectations enlarge. You're no longer just a designer. Your company now wants you to take on new tasks: more project management more communicating with others, writing, managing finances, negotiating, presenting. You don't need another degree, but you do need serious exposure, training and development --- and that's exactly what YCPI delivers.
YCPI enables you to take on new tasks and responsibilities, improve job performance and productivity, accelerate your construction professional development and increase the value you add to your company.
The YCPI program features industry leader instructors, focus on the most important skills for 2021, no one-way lectures - small groups and hands-on learning, engagement with BSA Young Designers in all sessions and convenient scheduling 12 sessions January - October.
 Casual Conversations with Kick Ass Women in Construction
January 28 | 4:00 p.m.
Zoom
BWiC invites you to join the conversation, to build connection, advance an initiative, maybe even solve a problem or two. We are honored to welcome prominent women within the commercial construction industry to share the intentional and the serendipitous, their hero's and the villain's, the opportunities captured, lost and set free, and what they spend far too much time doing, with their time. We promise, it will be worth yours. We welcome featured speaker Robin Dorogusker, Chief Operating Officer, Hereva Consultants, Inc.
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Massachusetts Construction Advancement Program (MCAP)
As a benefit to AGC MA-MCAP contributing members, MCAP reimburses 75% of direct program expenses associated with education, safety and other industry issues after full payment is made to AGC MA. Check out the video and see for yourself!
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As a benefit to AGC MA-MCAP contributing members, MCAP reimburses 75% of direct program expenses associated with education, safety and other industry issues after full payment is made to AGC MA?
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