April 23, 2020
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Why ABC SEMI is the Association for You

See how ABC SEMI is fighting for essential construction, jobsite safety, and providing more resources than ever for its member during these trying times. Join us every Wednesday for our weekly Zoom conference. Email aweaver@abcsemi.org for the meeting link.
What Employers Should be Doing Now to Prepare for Returning to Work
Wednesday, April 29th at 2 PM
Join Zoom Meeting
https://zoom.us/j/93860197363?pwd=V29WdXk4aklDU0xTNi9VdjZFclY4UT09

Meeting ID: 938 6019 7363
Password: 796242
**Classes Start Monday**
Get Your Employees OSHA-30 Training During the Shut Down for Only $199!
Are you going to be paying employees  not to work  because you’re receiving Paycheck Protection loans from the federal government? Remember when your key team members were too busy on construction projects to take time to get OSHA certified? 
Now’s the time to get your people trained, through special OSHA 30 safety classes currently being offered by ABC SEMI via video conference. ABC has been granted a special waiver to offer this class for a limited time only due to the Coronavirus. 
Why is this class better than other online training programs? Because your employees are not clicking on power point slides as quickly as they can to speed through the material, but rather there is a LIVE instructor, who will present the information. There is also opportunity for discussion among local construction industry peers and question and answer periods. In addition, there will be up-to-date information provided regarding the new COVID safety protocols that will be necessary when your team returns back to work.
Let ABC SEMI be your partner in safety training your workforce. There is limited space available, so this offering is on a first come, first served basis. Register today!
OSHA 30 Dates and Times:
Monday, April 27, 2020 at 8:30 AM - 4:30 PM
Tuesday, April 28, 2020 at 8:30 AM - 4:30 PM
Wednesday, April 29, 2020 at 8:30 AM - 4:30 PM
Thursday, April 30, 2020 at 8:30 AM - 4:30 PM
Advice from ABC SEMI Experts
Many construction company owners have shut down nearly all of their jobsites while they await Gov. Whitmer’s go-ahead to resume work. Based on your specific industry expertise, what advice would you give company owners on things they can be doing now to position themselves for a strong recovery when work resumes?
Eric Flessland
Attorney, Butzel Long
As the timing becomes appropriate to resume any projects that were hastily shut down, contractors must be prepared to address with the project owner or general contractor outstanding costs associated with the suspension. Further, consider requesting the owner or general contractor provide information to support the financial capacity of your organization to complete the project. 

In addition, contractors must:

  • Institute daily health screening policy and procedures. 
  • Determine schedule and cost impacts for equipment cleaning, limited shifting possibilities, or double shifting with smaller crews.
  • Analyze employee spacing possibilities and improbabilities. 
  • Order PPE now if needed. Deliveries are likely to be far into future. Schedule start up to coincide with realistic delivery, and consider schedule adjustments.
  • Did delay cause spoilage of materials, or affect completed work? Determine costs to restore completed work, and claim procedures. 
  • Contact suppliers to determine if needed materials and equipment are readily available to resume work, or schedule adjustments needed to get them to site. 
  • Determine if crews are willing or able to return to work, and if manpower or scheduling adjustments are needed.
  • Review notice requirements for schedule impacts and cost adjustments.  
Kurt Siebenaller
Partner, Baker Tilly
Cash flow, cash flow, cash flow. 13 week forecast minimum and if you never had a working 12 month budget, every company needs one. The application here is to take the budget and actually that combines both actual results and budgeted monthly expectations. The budget can’t just be static, it must be adjusted weekly/monthly to be realistic. Additionally you need all three financial statements in the budget, balance sheet – P&L and a functioning statement of cash flow. These times call for nimble and quick adjustments to flex up or down depending on the amount of work available. Lastly, owners must be direct and open with their employees on changes as the fear will cause the costs on closing of jobs to be very dangerous. The last 10% of a job is where 90% of job fade happens.
Jim Boland
Account Executive, VTC
While shutdowns may leave us more time than ever to plan ahead, the unknown and the pace of change make planning ahead more difficult than ever. There are however some steps that can be taken to help navigate the multitude of possible outcomes:

Contracts: Review contract wording relative to delays, obligations and penalties. Clarify to upstream parties in writing in accordance with your contract any potential impacts, revised completion dates, and consideration due to governmental closure.

Labor: Touch base with your labor either directly or through foremen. Is everyone willing and able to report back immediately? Are any seasonal laborers unavailable? Consider restructuring crews based on projected availability. 

Capacity: Evaluate your aggregate bonding capacity to verify your surety understands and supports the potential spike in peak backlog created by an even further compressed seasonal construction schedule

Sequencing: CM, Owner & Subs should communicate now. Will any trades be delayed in a way that impacts other trades? Consider contingency plan resequencing.  Delays incurred and winter 6 months out will further compress our already short construction season.

Equipment: Make preemptive repairs and improvements to minimize equipment downtime, which will only be magnified under compressed schedules. Procure adequate jobsite consumables for the “new normal” – masks, sanitizer, handwashing stations, etc.

Capital: As the PPP window winds down now is the time to work with your bank to make sure working capital lines and cash reserves can accommodate compressed start-up burdens.
Steve Conway
Area Sales Manager, Enterprise Fleet Management
It’s best said that, “Having no plan, is the worst plan.” If you aren’t taking this time to analyze your business (in every aspect, not just your fleet); when the economy wakes up- you will be behind the 8 ball. Right now everyone should be looking at refinancing any open loans they have(interests rates are so low), placing their future vehicle orders with the manufacturers, determining if their fleet is the correct size, catching up on vehicle safety recalls, catching up on preventative maintenance that is past due, looking more in depth at programs that could potentially increase future field productivity, etc.

When this ends, your company should have a fully functional fleet, with minimum anticipated downtime. Companies will not have room for error, they need to fire on all cylinders in order to make up for lost time. If you can say you are 100% prepared, awesome! But if you think there may be room for improvement, I’m always available to chat and discuss best practices!

Michael Barber
Wealth Strategy Associate, UBS
We are going into a recession. It's imperative we think back on the things we learned from the Great Recession 11 years ago and apply to this environment. Use this down time to over prepare for situations / possibilities that may happen when the economy opens back up. What if some of my employees collecting unemployment benefits don't return to work immediately. How do we handle a 75%, 50%, 25% reduction in operations / demand? What happens if this last longer than anticipated?   If you are funded from the PPP, use those funds for payroll and your excess cash reserves to reinvest in your business. If you didn't apply for the PPP, get your application ready to submit for the next wave.

We are going into a recession. It's imperative we think back on the things we learned from the Great Recession 11 years ago and apply to this environment. Use this down time to over prepare for situations / possibilities that may happen when the economy opens back up. What if some of my employees collecting unemployment benefits don't return to work immediately. How do we handle a 75%, 50%, 25% reduction in operations / demand? What happens if this last longer than anticipated?
 
If you are funded from the PPP, use those funds for payroll and your excess cash reserves to reinvest in your business. If you didn't apply for the PPP, get your application ready to submit for the next wave.

Sharon Novasel
Area Vice President, RPS Regency
Maintain separate payroll records for furloughed employees and those employees now working from home as it will likely reduce your workers’ compensation costs. Furloughed workers are defined as employees who continue to get paid but are not working in any capacity. Your ABC Self-Insured Workers’ Compensation Fund has created a new class code 0012 for these workers resulting in no premium charge for furloughed employees.
 
Also, as long as it’s documented in your payroll register, the ABC Fund will make classification adjustments for employees who are now working from home and not performing their regular duties. The exposure is less and so is the 8810 clerical rate.
 
With time available, I recommend a thorough review or your safety and accident prevention program. It should be updated to include the new COVID-19 guidelines for getting back to work safely. Employers should communicate the new guidelines with hands on training while reinforcing all of your company’s safety policies. Keeping current on safety training and certifications will also better prepare you for the new work environment. There are many resources available through the ABC SE Chapter and the ABC Fund at little to no cost.
ABC SEMI Member Professional Training Opportunities
With many members taking advantage of the federal paycheck protection program, you have many of your workers home idle. What a great opportunity to consider some online training to enhance their skills and make them more valuable upon returning to full-time work. ABC SEMI is currently considering programs in, but not limited to blueprint reading; estimating; project management; OSHA 10 and OSHA 30 to name a few. But we need to hear from you to see if offering these courses online would be viable during this brief shutdown due to COVID 19. If you are interested, please email us at  aweaver@abcsemi.org  and let us know which programs you would be interested in taking advantage of.
Management and HR Training in the COVID Era
Practical Tips to Limit Liability and Manage the Quickly
Changing Rules, Regulations, Leave Laws, Local Rules

Topics in our two hour training will include:
 
  • Navigating Michigan’s Executive Order prohibiting discrimination or retaliation in the workplace for COVID related absences
  • How to create and implement a COVID-19 preparedness and response plan as required by Michigan’s Expanded Stay at Home Order
  • Managing new paid leave laws for Emergency Paid Sick Leave and Expanded FMLA – who is eligible, how do we document it, and how do we get the government to pay for it?
  • How do these paid leave laws intersect with State and Local orders that might trigger an employee leave entitlement or create unknown legal liability?
  • Maintaining a workforce and disciplining employees for no-call no-show in the COVID-19 era and managing remote workers
  • Common reductions in force, pay cut, and wage and hour questions facing employers due to COVID-19
  • Strategies to determine how to manage a workforce when the Stay at Home Order is lifted
  • Q&A with our COVID Team on common issues impacting your workplace
Best Practices for halted or delayed excavation projects to commence from MISS DIG 811
The global Corona Virus outbreak, as well as methods and practices put in place to combat the spread of the virus, has had a significant impact on our personal and professional lives. Many companies in Michigan have experienced their operations slowing, if not shut down entirely. As we look forward to a return to normalcy, MISS DIG 811 would like to share some practices that will allow for halted or delayed excavation projects to commence in a way that can minimize the risk of overwhelming the resources of facility locators who will face a surge of locate requests once stop-work orders have been lifted.

Those who have patiently delayed projects, as well as those who were forced to halt in-progress projects, will be returning to work at the same time. With that in mind, the following process will go into effect once EO 2020-42 has been rescinded.
ABC Encourages Construction Companies to take the ‘Back-to-Work-Safely’ Pledge
ABC members are being asked to help get the industry back to work quickly by demonstrating to Gov. Gretchen Whitmer that we can work safely on May 1 st , as the second emergency order expires. We are encouraging members to read the attached safety plan, adopt the new guidelines within your company, circulate to your employees and other construction companies you work with.  

ABC SEMI is offering free safety services to member companies from our Safety Director, Kim Gamet, to help prepare your employees to transition safely back onto the jobsites. Kim can be reached at   kgamet@abcsemi.org or 734-770-6554 (cell).