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Volume 12 Issue 2 |
April 2000 |
Inside This Issue OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT LEGISLATION & STUFF | LEGAL FORUM | EDUCATION |
| Debt Collection: A Contractors Guide To Increasing Accounts Receivable |
Collecting a debt for work performed is one of the hardest things about running a business. When labor and materials have been spent to complete a project, you expect to get paid and paid timely for the expenditure of time and effort. There are a number of options available to a contractor who is trying to collect an outstanding debt. If you have not been paid for providing labor or materials, you may have a number of remedies available including: sending a demand letter, stopping work, filing a lien or filing a claim to recover on a bond. Pursuing these remedies will either scare the other person into payment or escalate the matter into a dispute. Demand Letter A demand letter is a formal request for payment. A
person should resort to this remedy after informal requests for payment have been ignored
for a reasonable time. Demand letters should indicate how much is owed, what labor or
materials have not been paid for and when payment was due. Many state and federal laws
apply to debt collection practices. They generally prohibit unreasonable acts such as
threats, harassment and misrepresentations in collection debts. These statutes also have
severe penalties for violations, thus care should be taken in all collection attempts. Stop Work The right to stop work for nonpayment may be based on a contract clause or on general legal principles. A Standard clause related to nonpayment reads: S TOPPING WORK SHOULD BE DONE ONLY AS A LAST RESORT9.7.1 If the Architect does not issue a Certificate of Payment, through no fault of the Contractor, within seven (7) days after receipt of the Contractors Application for Payment, or if the Owner does not pay the Contractor within seven (7) days after the date established in the contract documents the amount certified by the Architect or awarded by arbitration, then the Contractor may, upon seven (7) additional days with written notice to the Owner and Architect, stop the work until payment of the amount owing has been received. The contract time shall be extended appropriately and the contract sum shall be increased by the amount of the Contractors reasonable cost of shutdown, delay, and start-up, plus interest as provided for in the Contract Documents AIA Document A201-1997 The benefit for both parties of a clause like the one above is that it clearly states the rights of the parties before any problem arises. Before stopping work, carefully examine your contract. The above clause only applies if the contractor is not at fault and gives seven days notice to the owner and architect. Stopping work before meeting the technical requirements of the contract is a breach of the contract that would subject you to liability. Stopping work should be done only as a last resort. Typically, stopping work angers all parties involved in a project because the project may be delayed while a replacement contractor is located. Do not confuse a stop-work clause with a termination clause. A stop-work clause allows you to suspend work for nonpayment on a temporary basis. Once payment is received, work must resume. A termination clause allows you to end a contract permanently based on certain circumstances. While nonpayment may be a circumstance which gives a party the right to terminate a contract, the nonpayment in that circumstance is usually much more serious than what would justify stopping work. You should be familiar with both clauses in your contract. Even without a stop-work clause in your contract, you may have the right to stop work based on general legal principles. Perry Safran is a
construction engineer/attorney in Raleigh, N.C., who specializes in construction law. If
you have any questions, please contact Perry at Safran Law Offices: |
Inside This Issue OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT LEGISLATION & STUFF | LEGAL FORUM | EDUCATION |
| Office Happenings by Karen Colver | Page 2 |
2000 SMRCA ANNUAL MEETING Have you heard? Back by popular demand, the SMRCA Annual Meeting will be held at Casino Windsor on Thursday, April 27, 2000. The SMRCA/RIPF contractors meeting is scheduled for 6:00pm. The cocktail reception will be from 6:00pm to 7:30pm, followed by dinner at 7:30pm. If you have not RSVPd for this event, please contact the SMRCA office at (810) 759-2140 no later than Thursday, April 20, 2000. Hope to see you there! 2000 SMRCA ANNUAL GOLF OUTING![]() ATTENTION ALL GOLFERS!! The SMRCA Golf Outing is right around the corner! The date is set for Tuesday, May 16, 2000. We will be following the same format as last year, utilizing BayPointe and Links at Pinewood, for a shot-gun start to begin at 11:00am. Cocktails and dinner will be served at BayPointe beginning at 5:00pm. If you have not sent in your registration form, please do so ASAP. The courses are filling up quite quickly! If you would like to donate a gift for the SMRCA Golf Outing, please contact Heather or Tania at the SMRCA office at (810) 759-2140. Thank you for your continued support of this event. We could not do it without you!
OFFICE CHANGES I would like to introduce you to our newest staff member, Tania Materazzi. Tanias first day was on Monday, February 28, 2000. Tania is a great asset to our office. She is outgoing, energetic, dedicated and a hard worker. In the short time she has been here, she has made herself indispensable. You will be meeting her at the up-coming outings. Worker Recruitment / Industry Image Campaign The Southeastern Michigan Roofing Contractors Association (SMRCA) in conjunction with the National Roofing Contractors Association (NRCA) have become involved with a Worker Recruitment / Industry Image Campaign.
The formation of this Worker Recruitment / Industry Image Campaign was originally formulated by the Roofing Industry Alliance for Progress, the group formed as part of the National Roofing Foundations endowment campaign, has stepped forward to do something. The Alliance has committed significant funding to develop an industry-wide program designed to attract more workers into our industry, through a public relations and awareness program intended to tell the very positive story that ours is an industry with good, honorable jobs available for people willing to work hard and make a career for themselves.
The SMRCA feels this is a very worthy cause. The Worker Recruitment / Industry Image Campaign is a public information campaign to spotlight attractive job/career opportunities in the Southeastern Michigan Roofing Industry. The Campaign is designed to heighten awareness of the financial and other rewards of a roofing career and the strong area demand, current and projected, for new industry recruits, especially young men and women just entering the job market and people experienced in other fields who are seeking new challenges.
Some key components of the media campaign are listed below: 1. An informative brochure, available in English and Spanish, detailing the advantages of roofing as a skilled craft and what it takes to get started and succeed as a roofer; 2. A listing of Association member contractors with immediate job openings, including telephone and other contact information; 3. A special 24-hour, toll free hotline number people can call, staffed by English and Spanish-speaking operators, for free copies of the English or Spanish version of the brochure, plus the listing of contractors seeking workers. The toll-free number is 1-888-ROOF-321. The SMRCA has been working together with the promotion firm, Ruder-Finn in assembling a media kit, tailored to our SMRCA member contractors. The media kit and promotion material are currently being utilized to advertise in the Detroit News, Detroit Free Press, Oakland Press and the Macomb Daily, for any individual that may be interested in making a career in the roofing industry.
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Inside This Issue OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT LEGISLATION & STUFF | LEGAL FORUM | EDUCATION |
| Industry News by Karen Colver | Page 3 |
| CARLISLE INTRODUCES SURE-TOUGH
Carlisle, Pennsylvania Carlisle SynTec Incorporated, a leading manufacturer of single-ply roofing systems and products, recently announced the availability of Sure-Tough, a uniquely reinforced 75-mil-thick EPDM membrane.
Carlisles Sure-Tough is manufactured with an enhanced polyester reinforcement sandwiched between two plies of EPDM. Sure-Toughs dual-ply construction makes the product more resistant to the cuts, tears and scuffs that can occur in a dynamic roofing environment. Even if the top ply is damaged, the membrane will remain watertight due to a bottom layer that is approximately 30 mils thick. Such security has made the product the choice of facility managers at manufacturing facilities, schools and hospitals. The Sure-Tough Systems ability to withstand maintenance traffic is backed by a unique warranty. The Sure-Tough warranty provides owners with additional security by covering repairs for accidental damage, typically excluded from most roofing warranties.
Sure-Tough reinforced membrane may be utilized on Carlisle Fully-Adhered, Mechanically-Fastened and Metal Retrofit Roofing Systems, systems that attain Underwriters Laboratories (UL) and Factory Mutual (FM) approvals. The membranes enhanced reinforcement provides improved wind uplift performance for both the Mechanically-Fastened and Metal Retrofit Systems. ASPHALT PRICES ARE INCREASING
Because of recent increases in crude oil prices, roofing asphalt and asphalt containing roofing material prices are anticipated to continue increasing significantly. Industry sources report that crude oil prices are expected to increase $30 to $50 per ton roughly 15 percent to 20 percent higher than their current levels and continue to do so through summer. Factors influencing the price increases include a greater demand for paving asphalts, which has left roofing asphalts in short supply. In addition, there currently is less refining capacity than in recent years, and refineries are choosing to produce other products that are more profitable than asphalt.
As a result of the price increases, asphalt suppliers may experience shortages caused by disruptions in supply channels. And there is concern that suppliers may be tempted to use lower-quality crude oil for asphalt production. NRCA recommends that contractors who use asphalt containing materials work closely with asphalt suppliers to ensure material quality and supply. In addition, when bidding work that is not scheduled to be completed in the immediate future, contractors should consider including bid and contract provisions that account for possible price increases. Professional Roofing April 2000
The U.S. Environmental Protection Agency (EPA) has approved new blowing agents manufactured by Houston-based Exxon Mobil Chemical Co., a division of Exxon Mobil Corp., for all polyurethane foam applications. The blowing agents are based on high-purity cyclopentane and intended to replace HCFC-141b, a hydrochlorofluorocarbon, in polyurethane foam production. The approval designates the blowing agents as having low toxicity an no ozone depletion potential. Professional Roofing April 2000 SCHEDULE OF EVENTS Thursday, April 27, 2000SMRCA Annual Meeting and Reception at the Casino Windsor 6:00 pm.
Tuesday, May 16, 2000 SMRCA Golf Outing at BayPointe Golf Club and Links at Pinewood Shot-gun start at 11:00 am.
Thursday Saturday MiRCA Convention
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Inside This Issue OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT LEGISLATION & STUFF | LEGAL FORUM | EDUCATION |
| OUT & ABOUT by Tania Materazzi | Page 4 |
| JAC ROOFING SCHOOL DONORS
Platinum Gold Silver *Denotes Charter Member Donations for the JAC Training Center 2000 Program now total $22,350. We would like to thank all contributors, that have donated money, materials or who have volunteered their valuable time to this worthwhile project. The JAC Training Center 2000 Program is still accepting donations. The SMRCA would like to thank-you for your continued support.OUR CONDOLENCES
Our deepest sympathies are extended to the families of: Jim Poe of T.F. Beck Co., whose father passed away; to August Gus Bankstall of Milbrand Roofing Co., whose father passed away; and to the family of George & Marie Schena of Schena Roofing & S/M. who each lost a parent recently. Mr. Bruce Morse, a highly respected Firestone Building Products Field Technical Representative, passed away Saturday, April 8th. It is with great sadness that we mourn the loss of our own. CAM EXPO THANK YOUS Thank you for helping with the SMRCA booth at the CAM Expo this year. Your help was greatly appreciated. Without you, the show would not have been a success! Thanks to: Mike Casey T.F. Beck Co. ANNOUNCEMENTS RETIREMENT NOTICE! Mr. Bob Wynn, a well respected employee of Dewitt Products, is retiring after 42 years of service. Mr. Wynn served admirably as a driver, a plant manager and spent the last 12 years as a sales representative. Mr. Wynns decision to retire was celebrated on February 25, 2000.
Unfortunately, it was recently discovered that Mr. Wynn is in need of a liver transplant. He and his family wait somewhat impatiently for a liver doner. Mr. Wynn, we would like to congratulate you on your retirement, and also to let you know that our thoughts and prayers are with you.
2,970 sf - Snap-on Standing Seam Panel by Petersen Aluminum 24 Stone White Panel quantities and lengths as follows: 52 panels 12 o.c. x 160
Mike Grewette March 19th |
Inside This Issue OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT LEGISLATION & STUFF | LEGAL FORUM | EDUCATION |
| Legislation & stuff by Karen Colver | Page 5 |
MICHIGAN The State Construction Code Act, Act No. 230 of the Public Acts of 1972, as amended, has been again amended by Enrolled Senate Bill 0463. The bill, introduced by Senators Stille, McCotter, Shugars, North, McManus, Byrum, Rogers, Schuette, Gougeon, Bennett, Steil, Dunaskiss and Sikkema, now known as Act No. 245, Public Acts of 1999, was approved by Michigan Governor Engler and filed with the Michigan Secretary of State on December 28, 1999. Prior to the enactment of this legislation, many local communities elected not to administer and enforce the Michigan State Construction Code Act. These communities elected to otherwise adopt, by reference, other nationally recognized model codes. The provisions of Act No. 245, Public Acts of 1999, make it mandatory for all jurisdictions to enforce the state codes. If they elect not to enforce the state codes as they are updated, code enforcement in these jurisdictions will become the responsibility of the State of Michigan.
Changes to the State Construction Code Act make certain provisions of the state codes effective immediately and, upon the updating of the state codes, the provisions of the various codes will become effective statewide. The Michigan Electrical Code, updated on December 6, 1999, became effective immediately throughout the state in as much as it was adopted after October 15, 1999. Each community administering and enforcing another electrical code, may now elect to administer and enforce the Michigan Code provisions or discontinue administration and enforcement of any electrical code. Other provisions of the Act will become effective as the plumbing, mechanical, one and two family dwelling and building codes are updated. According to BOCA Board Member Wayne R. Jewell, C.B.O., Southfield, Michigan, The updated codes shall incorporate the provisions of the International Codes, standards, or other material by reference. The codes shall be updated, not less than once every three years to coincide with the national code change cycle, by an established process involving the submission of proposed changes to committees, followed by the development of a draft code, a public forum and a public hearing on the proposed rules. As the codes are adopted, notice of the adoption will be provided to each community including the ability to elect, to administer and enforce the state code or discontinue the administration and enforcement of a code. Once the entire series of codes are adopted, the State of Michigan will be operating under one set of mandatory statewide construction codes. Reprinted with permission from BOCA International, Inc. Bulletin dated March 5, 2000. CONGRESSIONAL TESTIMONY On February 9, John Gooding, chairman and chief executive officer of Gooding, Simpson and Mackes Inc., Ephrata, Pa., testified at a hearing held by the U.S. House of Representatives Small Business Committee. In his testimony, Gooding discussed legislation introduced to help remedy the work-force shortage, the Skilled Workforce Enhancement Act (SWEA) (HR 1824). If passed, SWEA would amend the tax code to provide small businesses (i.e., businesses employing fewer than 250 people) with tax credits that would offset job training costs in highly skilled business trades, such as roofing. To ensure training is effective, eligible employers would have to provide employees with 2,000 hours of on-the-job and classroom training each year for two to four years. In exchange, employers would be allowed to claim a $15,000 tax credit per trainee each year for up to four years. Gooding, an NRCA director and chairman of the National Roofing Foundations Roofing Industry Alliance for Progress, testified on behalf of NRCA. He stated NRCA supports the bill but would like to see a small adjustment made. Gooding explained that requiring 2,000 hours of training each year fails to account for individual industry characteristics. For example, in the roofing industry, full-time employees typically would not reach the 2,000 hour mark because weather conditions often do not allow workers to work year-round. Gooding asked for a more flexible requirement, and Rep. Sue Kelly (R-N.Y.) agreed that changing the 2,000 hour requirement makes sense. Gooding concluded his testimony by urging committee members to co-sponsor the legislation. After the hearing ended, Rep William Pascrell Jr. (D-N.J.) signed SWEA as its 50th co-sponsor. Before the House can vote on the bill, SWEA must be approved by the House Committee on Ways and Means. This may not take place until some time this month or later this year. Article written by: Craig S. Brightup
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Inside This Issue OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT LEGISLATION & STUFF | LEGAL FORUM | EDUCATION |
| Legal Forum by Mark Stasa | Page 6 |
Questions regarding the following question and answer articles should be directed to Mark J. Stasa at Kerr, Russell & Weber, P.L.C. (Attorneys for SMRCA/RIPF). Your thoughts for future issues may be addressed to Legal Forum and be submitted to the SMRCA office. Please note that you should also consult your attorney concerning the application of the law to your specific situation. |
| On April 1, 2000, a very comprehensive new law went into
effect in Michigan called the Estates and Protected Individuals Code (nicknamed
EPIC). While EPIC completely revises the current probate laws, it also applies
to much more than probate procedures, including the way an individuals estate is
distributed, with or without a Will and/or Trust. The following illustrative examples
highlight the changes:
1. In my Will or Trust, I leave all of my assets ($90,000 for example) to my three children, Ann, Jack and Lauren. Ann has one child but Ann dies before me. Jack has five children but Jack also dies before me. Under current law, Anns child takes her share of $30,000, Jacks five children split his share of $30,000 ($6,000 each) and Lauren receives her share of $30,000. Under EPIC, Anns child and Jacks children are lumped together so that the six of them each receive $10,000. If I want Anns child to receive the full $30,000, I have to make sure my Will or Trust is written to override EPIC.
2. In my Will or Trust, I leave my household furnishings to my children who survive me. Again, assume that Ann has one child but Ann dies before me. Even though I specified that my household furnishings should go to my surviving children, EPIC will distribute a portion to Anns child. If I want only Jack and Lauren to receive my household furnishings, I have to make sure my Will or Trust are written to override EPIC.
3. In my life insurance policy, I name my surviving children as my beneficiaries. EPIC applies to the life insurance proceeds in the same way as in the prior example. EPIC applies to beneficiary designations under life insurance policies, annuities, IRA and 401(k) accounts, credit union accounts, savings bonds payable on death (POD) and even deeds. If I do not want EPIC to apply, I have to change my beneficiary designation to override EPIC.
4. In my Will or Trust, I have a standard provision which states that if my children and grandchildren die before me, I leave my assets to my heirs. Under EPIC, the State of Michigan is now defined as one of my heirs. If I do not want the State of Michigan to be considered my heir, I must change my Will or Trust to override EPIC. 5. In my Will or Trust, I leave $100,000 in trust for my brothers children and I leave the rest to my children. Assume that upon my death my children will receive $900,000, but that estate taxes of $200,000 are due. Under current law, the trust for my brothers children pays its portion of the estate taxes (10%) and my children pay (90%). Under EPIC, the trust pays 0% and my children pay 100%. If I want to have the tax burden shared, I must change my Will or Trust to override EPIC.
The above examples only touch on a few of the changes. There are over 400 new provisions under EPIC which cover other family planning issues. You should review your estate plan with a legal advisor to see if any revisions should be made.
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Inside This Issue OFFICE HAPPENINGS | INDUSTRY NEWS | OUT & ABOUT LEGISLATION & STUFF | LEGAL FORUM | EDUCATION |
| EDUCATION by Tania Materazzi | Page 7 |
UPCOMING SEMINARS If you are interested in any of the following seminars, call the SMRCA office at (810) 759-2140 for more information. RIEI Seminars The RIEI provides educational seminars that include cities from coast to coast. RIEI addresses a wide variety of seminar topics which are of interest to roofing contractors, consultants, specifiers, plant engineers, and anyone else with a professional interest in roofing design, construction and maintenance. RIEI Schedule Architectural & Low Slope Metal Roofing Systems May 9-10 N. Brunswick, NJ
Learn about the various types of Architectural and Low Slope Functional Metal Roofing Systems, including the properties of metals and coatings, substrate preparation, panel forming, use of accessories, detailing of terminations, penetrations and trim, installation techniques, use in retrofitting and troubleshooting metal roofing systems. Roofing Safety May 2 Chicago, IL Learn to verify that OSHA Safety and Health Standards for Construction are in place and being followed.
Single Ply Roofing Systems May 3 Chicago, IL Learn about the chemistry, manufacturing and application. Understand maintenance and repair procedures. Look at specifications and participate in a discussion of warranties. This course is not for those new to roofing, as basic roofing concepts are not covered. Introduction to Roofing May 1 Chicago, IL Learn about roof systems, fire, wind and code compliance. This course serves as an orientation on roofing for those who do not require the depth of the RIEI Roofing Technology course to meet specific job requirements. Western Roofing Expo 2000 June 22-24 Reno, NV The definition of an exposition is an event which supplies information. The Western Roofing Expo 2000 has been designed to address many issues such as; government regulations, economic conditions, labor, products and much more. It will bring you new experiences, renewed education, information on new products and the opportunity to participate in some fun activities.
The Customer Service Seminar April 17 Farmington Hills, MI This conference is a one-of-a-kind way to get your valuable customer service managers, supervisors and representatives up to speed on the best ways to handle difficult customers, deal with stress, motivate others, find the new personnel you need, put that extra something into every customer contact and much more.
Roofing 101: An Overview of Roof Systems April 13 Boston, MA This conference is for building owners, facility managers, designers, new workers or office employees from roofing firms, and others who want to gain knowledge about basic low and steep-slope roofing. You will learn about; roof system design considerations, roofing materials, workmanship issues and proper system maintenance.
OTHER SEMINARS The Construction Association of Michigan Training & Education Center (CAMTEC) is hosting an array of seminars throughout the month of May. Listed below are the seminars and dates.
Blueprint Reading II/Intermediate May 2, 2000 6 p.m. to 9 p.m. Construction Accounting II/Advanced May 15, 2000 8 a.m. to 12 p.m. Contract Changes May 9, 2000 8 a.m. to 11:30 a.m. All seminars are held at the CAMTEC located at 1625 S. Woodward,
Bloomfield Hills, MI 48302 Register before April 24, 2000 to receive 10% off tuition. |
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