Reshaping the Construction Industry

Please allow me to introduce myself.  As the spokesperson for Chamberlin Roofing & Waterproofing, people know me, quite simply, as The Chamberlin Man.  I represent the courteous, professional and trustworthy service our entire team offers each and every day. At Chamberlin we are committed to the values we set in place more than 100 years ago.  Values like diligence, pride, honesty, commitment, loyalty and ingenuity are the guideposts of our work.Here I am looking rather dapper in a 1940s circular of my "Ten Commandments."  In my day and age it was common for companies to stand for fair, personalized service.  The level of service and the values The Ten Commandments of The Chamberlin Man bring to the job aren’t as common in all businesses today, but they’re still the code that the Chamberlin team lives by, and I encourage you to do the same in your business.I. Know Your Product, II. Know Your Customer, III. Know Your Market:  Work diligently and take great pride in knowing your products, customers and the market.IV. Be Honest – Deal With the Facts:  You know honesty is the best policy, so shoot straight with clients.  

Florida legislators have once again stepped up efforts to crack down on payroll fraud by naming another special prosecutor to investigate and punish workers’ compensation fraud.Last month, the Palm Beach Post reported that Palm Beach County (containing the cities of West Palm Beach and Boca Raton) is now the latest county to assign a full-time special prosecutor charged with pursuing worker misclassification and workers’ compensation fraud.  The article explains the role of State Attorney Dave Aronberg in procuring the $143,720 for this effort:“Aronberg, a former state senator, pushed for the money for the new initiative with the help of Florida Department of Financial Services leaders when he visited the state’s capitol during the recently ended legislative session.”Aronberg is quoted by the Palm Beach Post:“Workers compensation fraud has far-reaching effects, from costing Florida taxpayers millions to jeopardizing the health and recovery of workers who are injured on the job, to putting legitimate construction companies at an unfair disadvantage against competitors who cut corners and violate the law.”  

Job gains resume in May; spending grows in April; Beige Book notes expansionEditor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Nonfarm payroll employment increased by 175,000, seasonally adjusted, in May and 2,115,000 (1.6%) over 12 months, the Bureau of Labor Statistics reported today. Construction employment rose by 7,000 for the month and totaled 5,804,000, seasonally adjusted, the highest mark since August 2009 and a gain of 189,000 (3.4%) over the past year. Total hours worked in construction increased by 5.2% over 12 months, implying that contractors are lengthening working hours and also hiring new workers. Residential construction employment (residential building and specialty trade contractors) rose by 5,500, seasonally adjusted, for the month and 94,400 (4.6%) for the year. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) rose by 1,700 and 95,500 (2.7%), respectively. Architectural and engineering services employment, a harbinger of future demand for construction, rose 2.1% over the year. The unemployment rate for jobseekers who last worked in construction tumbled to the lowest May level in five years--10.8%, down from 14.2% in May 2012 and a May high of 20.1% in 2010. The number of unemployed former construction workers shrank by 259,000 over the year, implying that workers are leaving the industry as well as being rehired. (Industry unemployment data are not seasonally adjusted and should only be compared year-over-year, not across months.)

While lawmakers in Texas this year took a pass on a broad crackdown on companies that misclassify their workers, other states are ramping up their efforts. In Connecticut, for example, the state issued Stop Work orders to nearly 30 companies found to have been misclassifying their workers. The Connecticut Department of Labor says that they issued these Stop Work orders and slap penalties on companies that misclassify workers as independent subcontractors "with the intent of avoiding their obligations under federal and state employment laws covering such matters as workers' compensation, unemployment taxes and payroll reporting. The civil penalty for misclassification in Connecticut is $300 per worker for each day the employer does not carry workers' compensation as required by state law.While those numbers are significant, here's the real windfall from the state's efforts to deal