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FALL 2018NEW JERSEYConstructionThe Associated Construction Contractors of New Jersey Magazine

New Jersey Construction Activity:Forecasting the Next

Five Years

2 | New Jersey Construction | Fall 2018

ACCNJ Leadership

Board of TrusteesBenedict Torcivia Jr., ChairmanTorcon Inc.

J. Fletcher Creamer, Jr., Vice ChairJ. Fletcher Creamer & Son Inc.

Eric Jensen, TreasurerMichael Riesz & Co.

Art Corwin, SecretaryMoretrench

Alfonso Daloisio, Jr., Past ChairmanRailroad Construction Family of Companies

Mark Hall, Past ChairmanHall Construction Co., Inc.

Jack Kocsis, Jr., Chief Executive Officer

Darlene Regina, Chief Operating Officer

Highway RepresentativesRolando AcostaNortheast Remsco Construction

Michael CriscolaCrisdel Group Inc.

David EarpWalker Diving Underwater Const. LLC

Nelson FerreiraFerreira Construction Co.

Vincent GalloTilcon

Paul KochSkanska Koch

Michael MergentimeMerco Inc.

Tom VollersVollers

Jeff WatersWaters & Bugbee Inc.

Richard WeeksWeeks Marine Inc.

Building RepresentativesClifford BlanchardWm. Blanchard Co.

Charles DeAngelisVericon Construction Company LLC

Larry DrillDrill Construction Co., Inc.

Robert EpifanoEpic Management Inc.

Michael FitzpatrickFitzpatrick & Associates Inc.

Robert GambaPrismatic Development Corp.

Glenn GarlattiAlbert Garlatti Construction Co.

Paul NatoliJoseph A. Natoli Construction Corp.

Robert PolisanoNetwork Construction Co., Inc.

James Prisco Jr.J.R. Prisco Inc.

Building DivisionJohn BaumgardnerBFC, Ltd.

Michael DePalmaDePalma Contracting Inc.

John DevecchioTN Ward Company

John Epifano - Division Vice ChairEpic Management Inc.

Robert Gariepy - Division ChairRCC Builders & Developers

John GunningSkanska USA Building Inc.

Bill MacedoTurner Construction Company

Jack MacedoMacedos Construction LLC

Richard NugentMassett Building Company

Pasi NurminenNurminen Construction Corp.

Scott PodwatsForce Concrete & Masonry Corp.

Philip PriscoJ.R. Prisco Inc.

Brian TorciviaTorcon Inc.

Al ZapponeFabi Construction Co.

Highway DivisionJosh Benson - Division ChairTilcon

Harry ChowanskyHC Constructors

Brian FagerstenSparwick Contracting

Brad JorreyJ. Fletcher Creamer & Son Inc.

Chris JohnsonTutor Perini

Justin LijoTrevcon

Steven MaggipintoSchiavone Construction Co. LLC

Jesse Ottesen - Division Vice ChairWeeks Marine Inc.

Greg PetrongoloJPC Group Inc.

Gene SullivanRailroad Construction Company

Anthony SuppaSouth State Inc.

Tom TuozzoloMoretrench

Fall 2018 | New Jersey Construction | 3


Editor’s Note

The weather might be cold, but the next few years in the New Jersey construction industry will be anything but! In this issue, we feature a comprehensive five-year forecast for the NewJersey construction industry as compiled by the Otteau Valuation Group. Jeffrey Otteau pre-sented the results of this detailed study at the ACCNJ Fall Convention in September.

In the Chairman’s Message, Ben Torcivia, Jr. focuses on the relationship between ACCNJ and the

AGC of America. He reminds our members of the value of membership with our national organization

as well as its partnership with ACCNJ. In fact, AGC of America’s CEO, Steve Sandherr, commented on

how much he values the counsel from ACCNJ representatives. AGC of America is also profiled in this

publication in commemoration of its centennial anniversary.

In his article, CEO Jack Kocsis reiterates some of the positives about the construction forecast for

the state but also reminds everyone of the need to combat the underground economy in the construc-

tion industry. Darlene Regina’s COO Message reviews the October 11 Diversity Conference, which was

hosted by the Association for small, women-owned, minority-owned and disadvantaged contractors.

Published in this issue is a Member Profile on J. Fletcher Creamer & Son, celebrating 95 years in

business. This giant in the industry is well-regarded in many different disciplines of construction.

We continue to promote the accomplishments of our members in the Member News and Award-

Winning Project sections, while in our Giving Back article, we proudly recognize individuals and firms

that donate their time and talent to those in need. We also welcome 15 new member firms to ACCNJ.

Don’t miss the feature on the CIAP internship program. This summer, 44 students participated in a

12-week program in which they landed an opportunity to gain practical experience from New Jersey

contractors. They are our future.

We have also included a look at ACCNJ’s recent foray into the Social Media world. You can find the

Association on the following platforms:

Facebook: https://www.facebook.com/accnjofficial/

LinkedIn: https://www.linkedin.com/company/accnj/

Instagram:@accnjofficial

From all of us at ACCNJ, we wish everyone a happy holiday season!

Published byAssociated Construction Contractors of New JerseyRaritan Center Plaza II, Suite A-1991 Fieldcrest Avenue,Edison, NJ 08837-3627tel: 732-225-2265 • fax: 732-225-3105www.accnj.org

PublisherJack Kocsis, Jr.

Editor-in-ChiefDarlene Regina

Managing EditorAdvertising DirectorMike DeVito

Copy EditorDeb Teall

Contributing EditorsAbby Adams, Carol Fulton, Jack Kocsis, Darlene Regina, Jill Schiff, Michael Travostino

Publishing ConsultantRichard Ecke

New Jersey Construction Magazine is published by the Associated ConstructionContractors of New Jersey. Copyright by theAssociated Construction Contractors ofNew Jersey. No part of this magazine maybe reproduced or reprinted without writtenpermission of the Editor or Publisher. TheAssociated Construction Contractors ofNew Jersey does not stand sponsorship forthe opinions or facts of authors and doesnot necessarily agree with the opinionsstated by its contributing authors.

From Forecast to Facebook to Future, WeLook Forwardwith Optimism By Mike DeVito, Editor


Table of Contents

2 ACCNJ Leadership

4 Editor’s NoteFrom Forecast to Facebook to Future, We Look Forward with Optimism

9 Message from the ChairmanACCNJ & AGC Partnership Keeps Us Fixed on the Future

11 Message from the CEOA Positive Forecast Yet Troublesome News

13 Message from the COODiversity Conference Builds on ACCNJ’s DBE Initiatives

16 Feature ArticleNew Jersey Construction Activity: Forecasting the Next Five Years

22 Member Profile: J. Fletcher Creamer & Son, Inc.Ninety-Five Years of Success: The Celebration Continues

27 Member News BONUSHard Rock AC: Jersey (Union) Strong

31 Associate Member ExpertiseThe P3 Law is On the Books –Let’s Take Advantage of It

32 Award-Winning ProjectsMember’s 2018 Award-Winning Projects

38 Associate Member ExpertiseThe New Revenue Recognition Accounting: What Will the Impact Be for the Construction Industry?

42 Education & Workforce DevelopmentBuilding Relationships, Gaining Experience andShaping the Workforce: Internships Pay Off

46 Feature: AGC of America 100 YearsMaking Sure AGC of America Remains Focused on the Future

51 Government Affairs ReportLegislative News from Trenton

53 Social Media InsightLet’s Stop Avoiding Social Media in the Construction Industry

57 Labor Management CooperativeConstruction Industry Marketing: It’s All About the Platform

59 Labor Management CooperativeSolidarity!

61 Labor Management CooperativeThe Hoboken Hilton: Labor at the Forefront of Smart Development for New Jersey

63 Labor Management CooperativeIronworkers Meet Skilled Labor Shortage with Education and Training

64 Labor Management CooperativeLong Lines of Applicants Looking to Get On the Right Track

68 Union Mill Shop DirectoryUnion Mill Cabinet Shops: Artistic Asset to the Job

74 Member News

76 Giving Back

80 Welcome New Members

87 2019 ACCNJ Calendar of Events

88 Membership Roster

92 Advertisers Index

16 5322 27 46


Message from the Chairman

We were pleased to welcome AGC of America’s CEO, SteveSandherr, to our Fall Convention, where he reported on theweighty legislative issues that occupy countless hours downin Washington – of which the new tax bill, multiemployer pension fund

reform, infrastructure funding and permitting reform have been top-of-

mind and top-of-mission for months and sometimes years. Steve went

through the list, providing a thorough and succinct update on each issue,

his expertise a reassuring touchstone in the mass of information. And even

more important, we have the benefit of asking questions and contributing

our opinions on the AGC initiatives while the AGC staff (numbering 67)

does all the work!

Steve’s visit reminds us AGC is truly our partner in the nation’s capital,

watching our backs, protecting our flanks and keeping an eye on the fed-

eral affairs that impact our industry. AGC has been doing it for a century –

but Steve also let us know he relies on ACCNJ’s input and perspective.

Because, while AGC hones its expertise on the national front, ACCNJ

flexes muscle on the home front. Both organizations put subject-matter

experts in place to provide members the information we need – from labor

issues to government affairs, from safety best practices to business develop-

ment, from BIM to drones to mobile apps. All the knowledge, facts, intel

and advice are a phone call or mouse-click away. The expertise of our local

chapter and our national chapter is ours for the taking.

When ACCNJ management and members, including me, traveled to

Washington to celebrate the AGC Centennial this October, we were

exposed to another facet of our partnership. While we applauded 100 years

of success, we were made very aware of the need for a relentless focus on

the future. AGC’s Visions 2028 document, a current work-in-progress, lays

out the steps the organization must make to grow responsively for mem-

bers. Its new Autodesk-AGC Innovation Awards program encourages us to

explore new means, methods, materials and more in a quest for the innova-

tive best.

ACCNJ’s history goes back 80 years. Many of our members can trace

their history for decades. We’re proud of that. But perhaps prouder still if

we can stay relevant and vital in the future. We can rely on ACCNJ and AGC

of America to provide expertise and resources to help.

You can keep up with ACCNJ and AGC on Facebook and LinkedIn, and

AGC on Twitter. Perhaps the next time you hear from me will be a tweet.

ACCNJ & AGC Partnership Keeps Us Fixed on the FutureBy Benedict Torcivia, Jr., Chairman

…AGC is truly our partner in the nation’scapital, watching our backs, protectingour flanks and keeping an eye on the

federal affairs that impact our industry.


Message from the CEO

When ACCNJ and our labor partners first commissioned aconstruction opportunity study from the Otteau ValuationGroup in 2010, there was more than a little desperation inthe air as the Great Recession brought construction in New Jersey to almost

a standstill. The first five-year forecast didn’t have a lot of good news, but it

did pinpoint pockets of opportunity and, as a powerful marketing tool,

gave us a quantifiable argument in favor of union construction.

Late in 2017, we commissioned another five-year study from the Otteau

team, which Jeff Otteau presented to members and partners at the

Association’s Fall Convention. The opportunities have appreciably

increased, contractors and craftworkers are busy, and the New Jersey econ-

omy has finally begun to flex muscle again. The Association has now con-

tracted with Otteau Valuation Group to provide us with a quarterly report

scrutinizing construction hot spots and weak spots.

The latest five-year forecast helpfully dissects the market sectors and

geographic regions, enabling us to view the possibilities in minute detail.

However, it also reveals some disturbing news. Despite the strong eco-

nomic growth and low unemployment, despite the rise in construction vol-

ume, Bureau of Labor Statistics data as analyzed by AGC of America show

New Jersey’s construction employment is plummeting by thousands in

2018 compared to 2017. It would appear the state is shedding jobs. And sig-

natory contractors are losing market share.

Speculation has us pointing to the underground construction economy,

a drain on the industry that snatches jobs from honest contractors and

exploits craftworkers. We know a great deal about this “shadow economy”

in New Jersey, having commissioned another study, also with our labor

partners, from Stockton University. You’ve heard us recite the injurious

effects. The good players – tax-paying contractors, craftworkers and citi-

zens – all suffer.

The Governor, the Attorney General and the Labor Commissioner are

fighting back. We witnessed the Governor’s EO in May establishing intera-

gency oversight for employee misclassification. Rob Asaro-Angelo, Labor

Commissioner, reported to members and labor partners at our Fall

Convention that New Jersey signed a Memorandum of Understanding with

the US Department of Treasury, ensuring mutual cooperation in uncover-

ing the unscrupulous tax activities of bad-actor contractors. In addition,

the Commissioner is working on aggressive ways to revoke the business

licenses of those who deliberately misclassify employees and dodge paying

taxes. He wants to model in New Jersey the Massachusetts Council on the

Underground Economy, which collaborates the efforts of 37 state agencies

and departments.

As we approach 2019 and labor negotiations with many of the general

construction trades, we ask our members and labor partners to be wary.

Do not be fooled by a robust economy. We must work harder than ever to

combat and destroy the underground economy, regain market share and

demonstrate rigorously the value of union construction in New Jersey.

Your thoughts and comments are welcome.

A Positive Forecast Yet Troublesome NewsBy Jack Kocsis, Jr., Chief Executive Officer

We must work harder than ever to combat and destroy the undergroundeconomy, regain market share anddemonstrate rigorously the value ofunion construction in New Jersey.


Message from the COO

Due to the success of last year’s program, ACCNJ held its secondDiversity Conference on Thursday, October 11, 2018. Onceagain, the program provided an excellent opportunity for certi-fied Small, Minority, Women-owned and Disadvantaged businesses to

interact with many of New Jersey’s most reputable and successful construc-

tion managers and general contractors in the heavy highway, utility and

building construction sectors.

The prime contractors who participated included 17 ACCNJ members:

For two hours certified firms met with the prime contractors one-on-one

to get to know each other with the hope of building a working relationship

in the future.

New to this year’s event was the participa-

tion of our labor partners from the

Bricklayers & Allied Craftworkers, Locals 4 &

5, the United Brotherhood of Carpenters &

Joiners of America, the Laborers

International Union of North America and

Operating Engineers, Local 825.

Understanding how critical the trades’ role is

to a contractor’s success, inviting the trades

to participate was important. It allowed the certified firms to understand

how the trades aggressively recruit and train a skilled workforce and pursue

other initiatives to enhance business opportunities for their signatory con-

tractors and craftworkers.

Prior to the networking session, seven agencies gave informative

presentations:

Division of Property Management & Construction

They shared helpful information on what firms need to do to be certified

to work for their respective agencies and outlined upcoming projects. In

addition to the presentations, the Agency representatives also had tables

during the networking session to answer individual questions.

Growing the base and capacity of certified firms is a major priority for

the Associated Construction Contractors of New Jersey and we believe this

Conference is one way in which we can achieve that goal. There are many

other initiatives we are working on and we greatly appreciate the continued

support and enthusiasm of our members and labor partners.

Diversity Conference Builds on ACCNJ’s DBE InitiativesBy Darlene Regina, Chief Operating Officer

Epic Management

Ferreira Construction

Hall Construction

Kiewit Infrastructure

Kiska Construction

Northeast Remsco

Railroad Construction

Schiavone Construction

Skanska Koch

Skanska USA

Torcon Inc.

Trevcon Construction

Tutor Perini Corp.

Vericon Construction

Waters & Bugbee

Week Marine

Wm. Blanchard Co.

NJ DOT

NJ SDA

NJ Transit

NJ Turnpike Auth.

NJ Treasury Dept.

Port Authority of NY/NJ

We don’t need a crystal ball to tell us the New Jersey construc-tion industry has substantially recovered from the GreatRecession. Instead, we have statistical methodology from the Otteau Valuation Group, led by Jeffrey Otteau, whom we once again

commissioned to give us an in-depth forecast of New Jersey construction

during the next five years.

Otteau presented the latest study to Association members and our labor

partners in September at the ACCNJ Fall Convention. This comprehensive,

econometric analysis of economic, demographic and real estate market

indicators dives into the market sectors in which our members find the

most work, both public and private. It also identifies geographic hot spots

that are likely to experience high levels of construction spending and dis-

cusses New Jersey’s land-use restrictions that present an ongoing challenge

to sensible development.

Demographics Determine All

Otteau calls the short-term forecast for construction spending “extraordi-

narily positive,” with “at least another five years of growth.”

However, he points to “remarkable” demographic changes in New Jersey

that will determine real estate hot spots and affect construction spending

(up or down) across all market sectors. For example, 70% of all households

in the state are childless: “If you have adult children living in your home,”

Otteau jokes, “they’re not children, they’re boarders!” Millennials and

“empty-nest” Baby Boomers are driving demand for apartment construc-

tion and multi-family mixed-use developments, particularly those built

near public transit.

The New Jersey population is transitioning to a European market model,

Otteau explains, with very low birth rates among Millennials and a high

rate of “urban settlers who have an obsession with coffee and small dogs.”


Feature Article

New Jersey Construction Activity:Forecasting the Next Five Years

By Jack Kocsis, Jr., Chief Executive Officer, ACCNJ


At the same time, outmigration continues its trend. New Jersey has the

second-highest outmigration rate in the country, losing an average of

80,000 citizens a year and, over the past decade, as much as $18 billion in

net adjusted gross income. Otteau also notes people are moving eastward,

leaving the suburban areas in western New Jersey for the Jersey shore

towns, urban centers and New York City.

The “tech wave” among businesses and individuals has also created huge

market shifts. Nowhere is this more apparent than e-commerce.

The effects of these demographic changes on suburban office parks and

retail have been all-too-visible in abandoned office complexes, empty malls

and anchorless shopping centers. Both got a triple-whammy from outmi-

gration, virtual offices and online shopping. But urban retail has been

maintaining a certain growth because of mixed-use development (includ-

ing all those ground-floor coffee shops and pet salons). E-commerce is driv-

ing tremendous demand for data centers and warehouses – lease rates have

climbed at least 11% over the past two years. And developers have begun to

turn “distressed” office buildings into upscale mixed-use, walkable villages

– Bell Works in Holmdel and Hoffman LaRoche in Nutley/Clifton being

two prominent examples.

Economic Indicators: The Big Surprise

We all felt the agonizing length of the Great Recession in New Jersey. The

state experienced the longest, slowest recovery of any state in the country,

“largely because of the high cost of living here and the tight regulatory envi-

ronment,” including inflexible land-use rules, Otteau explains.

So the recent economic growth came as a surprise. New Jersey, which

lost more than 100,000 jobs during the recession, has now recovered them,

and should add 96,000 more by the end of 2018, reports Otteau, calling the

state “on pace to hit the best job creation rate in 19 years.” At the same

time, unemployment, which hit a peak of 9.8% in 2010, fell to 4.5% in 2018.

In a dichotomy Otteau calls “very rare,” there are now more jobs than

unemployed people.

Total wages and salaries in New Jersey increased 3.78% during 2018,

ahead of inflation, helping people realize improvement in buying power.

The state’s strategic location and infrastructure have helped the eco-

nomic pick-up, which now rivals that of Pennsylvania and New York. The

reauthorization of the Transportation Trust Fund in 2016 and the increased

funds from a higher gas tax will lead to more spending on infrastructure

and move the economy forward.

All the economic indicators support strong construction demand – and

even if another recession hits, as Otteau warns is likely in perhaps another

couple of years, the impact on the construction industry won’t be felt for at

least a couple of years after a recession is formally noted.

Otteau calls the short-term forecast for construction spending “extraordinarily positive” with

“at least another five years of growth.”


Market Sectors – What’s Growing, What’s Shrinking

The Otteau study projected construction spending in these 10 sectors:

1. Multi-family housing

2. Office

3. Retail

4. Industrial

5. Hospitality (hotels & motels, amusement & entertainment venues)

6. Healthcare

7. Miscellaneous Non-Residential (parking facilities, bus, train & ferry

terminals, airports, subway stations, convention centers, park

buildings & community centers, religious facilities)

8. Government

9. Education

10. Civil (roads & bridges)

Included for each sector is historical spending, with five-year and three-

year averages plus spending in 2017. The five-year projection (2018-2022)

was derived from statistical analysis of historical spending plus a combina-

tion of other more subjective methodologies that take into account the dra-

matic changes in demographics and economics that occurred during and

after the Great Recession.

Multi-family housing. Including townhomes, condos and apartments,

rents are rising, vacancy remains low and New Jersey has “relatively old

existing apartment stock.” These factors led to strong construction activity

in 2017 and, while 2018 will retract somewhat because of the slow develop-

ment approval process, the remaining forecast period should experience a 1%

uptick in activity each year.

Office. Otteau reports demand for office space “weakened significantly”

in 2018, particularly in South Jersey. Statewide, the vacancy rate stands at

12%, a percentage point higher than the pre-Recession rate in 2006 of 11%.

Compounding the high vacancy rate is the high (15.3%) availability rate,

which in turn compresses rents. Offsetting the negative factors, construc-

tion spending in 2017 was unusually high because of multiple new projects

in Camden, Newark and Jersey City. Continued development (and redevel-

opment) in these and other urban areas will keep construction spending

growing at an average of 4.1% through 2022.

Retail.New Jersey is seeing surprising strength in the retail market,

despite the news, as of press time, of 3,335 major US store closings. Says

Otteau, the bullish economy and mega-projects like American Dream

Meadowlands are hiking retail construction in 2018, but he expects it to ease

off to a half-percent increase year-by-year through 2022.

Industrial. As you know, New Jersey has a perfect combination of factors

driving the demand for warehousing and data centers – a concentrated,

affluent population that spends “in high concentrations” and a strategic

All the economic indicators supportstrong construction demand – and even if another recession hits…the impact on the construction industry

won’t be felt for at least a couple of yearsafter a recession is formally noted.


location between New York and Philadelphia, plus proximity to the local

ports. They add up to high demand for new, state-of-the-art facilities, espe-

cially as the current vacancy stands at 4.2%. Otteau forecasts an average 5.6%

increase in industrial construction activity from 2019 through 2022.

Hospitality. A volatile sector that responds quickly to market turns,

Hospitality construction is expected to grow in New Jersey just as it is

nationally, Otteau projects, encouraged by the strong economy and

increasing personal income. Tourist spending continues to rise, with more

than a quarter of it spent on hotel rooms. Large-scale mixed-use projects

like American Dream, the as-yet-unbuilt Riverton project in Sayreville, the

proposed Riverfront Square redevelopment in Newark and Camden

Waterfront development all have hotels in the plans. Otteau forecasts a very

healthy 24.7% annual spending increase through 2022.

Healthcare. Hospital construction spending was high in New Jersey in

2017 because of the new Inspira Health Network Hospital in South Jersey

and Saint Barnabas Medical Center expansion in North Jersey. The P3 part-

nership announced in August between Rutgers and RWJBarnabas will

bring $1 billion worth of investment over 20 years, starting with $100 mil-

lion on a new clinical and research building for the Rutgers Cancer

Institute of New Jersey, plus a new ambulatory care center, both in New

Brunswick and both expected to open in 2020. The state’s legislative initia-

tive to prop up Obamacare resulted in a mandate for individual health

insurance, assuring continued demand for medical care. Even with these

promising factors, Otteau forecasts healthcare construction spending to

average $567 million annually through 2022, slightly below 2017’s spending.

Miscellaneous Non-Residential. This diverse category showed a spike

in construction spending in 2015, attributed to work at American Dream.

However, projections for the forecast period put construction spending at

very modest levels, declining gradually through 2022.

Education.While declining enrollment in K-12 public schools would

indicate less need for construction, many public schools in the state are

aging and deteriorating, increasing demand. Coupled with the rising

enrollment in state colleges and universities, Otteau predicts construction

spending in the sector to increase 2.2% annually through 2022.

Government. Construction spending in this sector continued to rise dur-

ing the Great Recession, peaking in 2015, mainly because the slow life-cycle

of government projects, which are generally slow-starters and thus contin-

ued through the downturn. Public jobs in New Jersey grew at a fast pace

from 2000 through 2007, further increasing need for new building. With a

healthier economy, Otteau forecasts annual 6.7% growth through 2022.

Civil. With the analysis focused on roads and bridges in this sector,

Otteau predicts TTF funding, gas tax revenues and ultimately federal infra-

structure funding will result in an annual increase of 3.9% in heavy/highway

construction spending through 2022.

Aggregate Spending on the Upswing

Although 2018 spending will slide about 7% from the previous year, Otteau

says aggregate construction spending will grow during the next four years

of the forecast period, 2019-2022, at an annual rate of 2.7%. That will bring

total spending in 2022 to $12.6 billion, and create a five-year annual

average of $12 billion, healthier than the historical annual average of

$10.9 billion from 2013 to 2017.

For details on individual market sectors and geographic hot spots, access the com-

plete Otteau Valuation Group study, “New Jersey Construction Forecast,” in the pass-

word-protected, members-only section at www.accnj.org under “Industry Studies.”


Member Profile: J. Fletcher Creamer & Son, Inc.

Ninety-Five Years of Success: TheCelebration Continues

Ninety-five consecutive years of success is huge. J. Fletcher Creamer &Son, Inc., founded in 1923, has achieved success beyond anything itsfounder ever imagined.We hear of the daring, the terror and the pride J. Fletcher Creamer experienced

as he scraped together the necessary funds to purchase the very first vehicle, a

Ford rack truck. Now a fleet of more than 2,600 pieces of equipment proudly

carry the Creamer logo and American flag. Fourth-generation Fletch Jr., CEO,

and his brother Dale, Vice President, along with Joseph T. Walsh, President, lead

the company of 1,200 – and the fifth generation is active in the business.

Success in Diversity

Creamer’s first major project was hauling excavated materials from the

George Washington Bridge. Eight decades later, in 2014, Creamer’s rehabil-

itation of the mechanism on the GW Bridge kept the world’s largest free-

flying American flag aloft on the bridge’s New Jersey tower.

The company spent those decades diversifying – from hauling to fuel oil

delivery, from utility installation to road and bridge-building, from pile-

driving to directional drilling, from pipeline rehab to parking garage,

pump station and power plant construction. And much more.

Today, Creamer is perhaps the most diverse contractor in the United

State. As a premier utility contractor, Creamer is frequently called upon in

a crisis. When a road collapses, a utility fails, a pipeline breaks, Creamer

sends the skilled workers and state-of-the art equipment to repair the

damage – and the public recognizes the familiar cream-and-brown trucks

with their hard-hat logo. Creamer responded at Ground Zero following

9/11 and, for years after, provided crews and equipment to many towns as

they built memorials.

Every year for three decades, Creamer has been recognized on ENR’s Top

400 Contractors list, ranked at #161 in 2018. It has four New Jersey offices

and a Maryland office, from which the company directs hundreds of proj-

ects every year, performing work across the country (to date, it has had

projects in 39 states).

Each Generation Recognized Opportunities

“Each generation had its mountains to climb,” relates Fletch. “The first got

the ball rolling…the second grew the business a little more and the third

kicked it in gear. That was my father’s doing as we branched out into the

guide rail business, pipeline rehabilitation, pile-driving, marine work and

opened offices in Maryland and California.”

Fletch’s generation, the fourth, “jumped on the fiber optic market,” he

recalls. Creamer’s multi-pronged approach sent crews for special training

and fanned them across the US to install conduit and fiber optic cable, tak-

ing advantage of the company’s investment in specialized equipment. The

result was resounding success.

Long-haul fiber projects became the norm, with thousands of miles of

duct and fiber installed in California, Washington, Colorado, Tennessee,

New Jersey, Delaware and Maryland. In New Jersey, hundreds of miles of

conduit and fiber for the E-ZPass toll collection system were mostly

installed by Creamer crews. Creamer remains a leader in fiber optics today.

Conduit pulled into 6,500 linear feet of 30-inch casing installed via a horizontal directional drill under Newark Bay

Left to right, Fletch Creamer Jr., George Kreis, Glenn Creamer and Dale Creamer


At the same time, Creamer installed countless miles of water mains in

the Northeast, from Massachusetts to Maryland and Washington DC, with

a move west to California to install 42-inch pipe in the Mojave Desert.

Then came the 21st Century and the renewable energy market. Creamer

completed small wind projects and installed numerous solar farms. The

most recent foray has been in utility mark-out, a business enterprise that

responds to the One Call in New Jersey.

Of course, not all projects are easy. Fletch points to three recent projects

for a major client as among the most challenging of his tenure. The proj-

ects, he explains, required “tens of thousands of feet of trench excavation

for new transmission lines that took us through Elizabeth, Bayonne,

Newark, East Orange, Orange and West Orange – some of the most densely

populated cities in New Jersey with heavy traffic and underground utilities

too numerous to mention.”

Two of the projects were underground, the third a horizontal directional

drill under Newark Bay from Bayonne to Elizabeth, encompassing 6,500

linear feet of two 30-inch casings carrying conduits for the cables.

“These were projects for a major client,” Fletch emphasizes. “We had to

perform. And we did. We attacked the projects with as many as 10 crews.

The outcome was very satisfying, for Creamer and for its client.”

Growing as Innovators and Adaptors

Fletch sees a bright future for the construction industry. As the push continues

for an updated national infrastructure, he expects many projects to open up.

“There really is no alternative if we want to stay a healthy, productive

country,” he says. “The backbone of industry and transportation is our

infrastructure. We have to rehabilitate or replace our roads, bridges,

commuter rail and commercial freight lines.”

Always ready to adapt to new opportunities, Fletch believes P3s will play

a large role in infrastructure upgrades. Creamer has already engaged in P3

discussions in the past couple of years. “P3s put together a mechanism that

provides financing, construction and better control over project design and

construction,” Fletch affirms.

He acknowledges adaptability is a driver for Creamer’s success, respond-

ing to the ever-changing economy and methods of construction with inno-

vative ideas. “We employ knowledgeable and ambitious people who can

help the company adapt and grow,” he explains.

Grateful for the “thousands of employees who have worked for us with

pride,” Creamer took another innovative step in 2017, opening its

Leadership and Training Center in Wall. Operated full-time, the Center

provides an introduction for new employees to all corporate polices.

Specific hands-on training is also available for excavation, shoring,

welding, confined space and other construction activities. Creamer crews

are scheduled for periodic refresher training throughout the year. The com-

pany has its core values of Safety, Quality, Integrity, Reliability and

Productivity, and crews are reminded of them very often.

Giving Back to Communities, Employees and the Industry

Working on so many projects for so many years, J. Fletcher Creamer &

Son developed close affiliations with countless local communities. “Acutely

conscious” of the needs of those communities, the company established a

family foundation to give back generously. Its philanthropy is noteworthy

and as the company has grown, so too has the number of recipients.

In addition, family members volunteer their time to serve on numerous

charitable boards – hospitals, community associations and religious organ-

izations. The company funds college scholarships for students of Creamer

employees. And giving back to the industry is a deep-rooted family philoso-

phy. Fletch currently serves as Vice Chair on ACCNJ’s Board of Trustees.

“There is no way to calculate the hours my family has spent supporting

the many associations over the years,” he says. “I have always felt, as did my

father, you have to give back in order to receive. As a family we have

insisted the Creamer name always be associated with supporting a wide

variety of causes, especially those associated with our industry.”

Conduit beneath JFK Blvd. in Bayonne, part of tens of thousands of feet oftrench excavation for new transmission lines


Member News BONUS

Hard Rock Hotel & Casino AtlanticCity opened in June, triumphantlytransformed from the former TrumpTaj Mahal. Three Jersey guys, a dozen ACCNJ

members and more than 850 union craftwork-

ers made the reconstruction happen in six-and-

a-half months!

Three Jersey Guys Designed the Vision

The vision for a Hard Rock Hotel & Casino in

AC began with Jim Allen, CEO of Hard Rock

International, which is owned by the Seminole

Indian Tribe of Florida. Allen is a native of

Linwood whose faith in Atlantic City came

through with the establishment of the Hard Rock Café in the Taj before

most people could imagine a comeback of the resort town.

Hard Rock International’s partners were two more Jersey guys. Joe

Jingoli, CEO of ACCNJ member Joseph Jingoli & Son, is well-versed in revi-

talization projects around the state and in AC. His company built the

power plant for the former Revel casino and is the general contractor for

the Stockton Gateway project. Jack Morris, CEO of real estate development

company Edgewood Properties in Piscataway, lives in Somerset County.

ACCNJ Contractors Demonstrated Their Expertise

ACCNJ member TN Ward served as general contractor for the renovation

of hotel rooms, casino floor and public spaces on the $400 million project.

John Devecchio, TN Ward’s Executive Vice President of New Jersey

Operations, reports dividing the whole into numerous subprojects for both

design and construction. Every construction subproject was headed up by a

project manager and superintendent, who had to coordinate with all the

subproject leaders to ensure efficient material delivery and sufficient craft-

worker-power.

Devecchio credits the combined knowledge and expertise of all the con-

struction teams for the successful renovation of most of a four-million-

square-foot complex that included more than 1,900 guest rooms; a

1,900-square-foot Casino Floor; 7,000-person-capacity Hard Rock Live at

Etess Arena; 400-seat Hard Rock Café; 10 specialty themed restaurants; and

150,000 square feet of event space – in half the time it would typically take.

Most of the contractors on the project were local South Jersey firms, with

some from Philadelphia and a few from New York.

In addition to Joseph Jingoli & Son and TN Ward, 10 of those contrac-

tors are ACCNJ members: Atlantic Concrete Cutting, BFC Ltd, Brand

Safway Services, Central Salvage Co., Fred M. Schiavone Construction,

Filling Marble & Tile, Heritage Flooring, Philadelphia D&M, Pro

Construction and Schiavone Construction Co.

Union Craftworkers Burned the Midnight Oil

Challenging the teams’ construction progress, which begin in mid-

December 2017, was the concurrent development of the project design.

In addition, the work occurred during a period of tremendous construc-

tion activity in the Northeast, which led to a shortage of craftworkers, limit-

ing the teams’ ability to schedule multiple shifts. To meet the demanding

project schedule, most trades worked extended hours. And, as needed, the

unions helped source labor from other geographic locations.

Hard Rock opened June 28, three days after construction was completed.

Courtesy of TN Ward Company

Hard Rock AC: Jersey (Union) Strong

Courtesy of Hard Rock Hotel & Casino Atlantic City


HeadingAssociate Member Expertise

The P3 Law is On theBooks – Let’s TakeAdvantage of It By Charles F. Kenny, Esq., and Michael S. Zicherman, Esq., Peckar & Abramson PC

At the close of the Constitutional Convention of 1787, BenFranklin, when queried by a group of citizens as he leftIndependence Hall on the final day of deliberation, was asked,“Well Doctor, what have we got, a republic or a monarchy?” “A republic,”

he is said to have replied, “if you can keep it.” Much has been written about

what this founding father meant by those words; the consensus is Franklin

was admonishing the citizens a republic requires the constant attention

and devotion of all its citizens.

While New Jersey did not have to wage war to get the enabling legisla-

tion enacted for Public Private Partnerships (or P3s, as they are commonly

referred to), it was a struggle. The initial pilot-program legislation passed

in 2009 was limited exclusively to state and county colleges and contained

a sunset provision after five years. A more comprehensive bill was drafted

and passed both houses of the Legislature, but then was conditionally

vetoed by Governor Christie because it mandated the payment of prevail-

ing wages and the use of project labor agreements, protections ACCNJ and

the bill’s sponsors regarded as essential elements.

But like the struggle for independence, the fight, though arduous, was

well worth it. We now have comprehensive legislation that can be utilized

by virtually every public entity in the state. Nonetheless, the work still is

far from over. Governor Murphy signed the bi-partisan legislation on

August 14 of this year, to take effect on February 10, 2019. The 180-day

period is intended to allow the Department of Treasury, the Economic

Development Authority and the other public agencies involved the time

to devise and promulgate regulations necessary to implement the various

sections of the statute. ACCNJ is committed to this process, and plans

continued involvement, as it has been in its partnership with the legisla-

tion’s sponsors and others. ACCNJ’s leadership in drafting a bill that not

only provided for this much-needed, novel project delivery system also led

to safeguarding New Jersey’s standards for contractor integrity and

provided a reliable payment stream. These are the principles upon which

ACCNJ has always been laser-focused, both on behalf of its members and

the construction community at large.

With the earlier, limited law sunsetting in 2014, ACCNJ lost no time in

addressing the need for comprehensive legislation to deal with the urgency

of upgrading the state’s infrastructure, in the face of the limited public dol-

lars available. As attorneys working with ACCNJ as well as AIAI

(Association for the Improvement of American Infrastructure), Peckar &

Abramson investigated the few projects that came to fruition under the

prior law to determine if there were any gaps or holes that required filling.

We also looked at projects that “attempted” to mirror the P3 business

model utilizing the Redevelopment Law and the County Improvement

Authority Law, projects that did not have, in our opinion, the appropriate

legislative authority. One item that glaringly stood out in these projects was

the lack of assurance of payment to the general contractor by use of the lien

laws. A P3 project cannot avail itself of the Construction Lien Law (no pri-

vate property to lien) nor the Public Improvement Lien Law (no public

funds to attach).

The solution was to provide for a “construction account” in the P3 law

that would hold the fully funded project capital, in trust, for the benefit of

the contractor, construction manager and design/builder engaged by the

concessionaire or private developer. While the account is established by the

private-partner concessionaire, it is managed by a wholly separate third-

party trustee.

Of course, this and the other important provisions ACCNJ lobbied for to

protect the time-honored aspects of public bidding could not have been

possible without the wisdom and foresight of the sponsors in the

Legislature, a notably bi-partisan group that included Senate President

Sweeney and Assembly Speaker Coughlin, as well as Senator Oroho and

Assemblymen Greenwald and Bramnick.

With the legislative infrastructure for P3s in place, now is the time to

ensure the opportunity presented is not squandered by a delay in establish-

ing the regulations and process to allow the program to work. One com-

mentator appropriately called the new P3 law “a shiny addition to the

state’s project financing toolbox,” but cautioned about “unknown aspects

of how the process will play out.” However, Governor Murphy’s enthusias-

tic support gives assurance that administrative aspects of the law will

quickly fall into place. Then it will be up to the construction community,

including both labor and management, to partner with the public agencies

to make sure the P3 law is utilized appropriately and advantageously for

the benefit of the public and our contracting community.

Charles Kenny is the Co-Managing Partner of Peckar & Abramson’s New Jersey Office and Counsel to ACCNJ. Michael Zicherman is a Partner in the NewJersey Office and has worked extensively with P3 programs in Pennsylvania and other states.


Heading

Members’ 2018 Award-Winning Projects

At year-end, it’s always a pleasure to present Award-WinningProjects recently completed by ACCNJ members. Enjoy the 2018 collection – and we encourage members to submit award-winning projects for the Fall 2019 issue of New Jersey Construction.

Contractor: Skanska

Project: Rockaway Beach Boardwalk Reconstruction

Awards: CMAA 2018 Project of the Year Awards –

Honorable Mention

APA 2018 National Planning Achievement Award –

Silver Award for Urban Design

After decades of work and experience in the New York Metropolitan

area, Skanska took great pride in the opportunity to reconstruct nearly

five miles of boardwalk on Rockaway Beach after the devastating effects of

Superstorm Sandy. Working with the New York City Economic

Development Corporation and New York City Department of Parks &

Recreation, Skanska faced the challenge of constructing a boardwalk that

maintained its famous aesthetic legacy while significantly upgrading its

protective capabilities against the ocean’s tide.

The boardwalk was rebuilt with reinforced concrete and raised to three

feet above the new base flood elevation recommended by FEMA. It sits on a

sand dune planted for the project that will stabilize and replenish beach

infill. On the boardwalk, blue concrete planks have glow-in-the-dark

speckles that spell out “Rockaway,” visible from the air.

Skanska’s work will stand as a pillar in the community and create a

legacy for years to come.

Contractor: Skanska Walsh Joint Venture

Project: LaGuardia Airport Terminal B Parking Garage

Award: ENR New York 2018 Regional Best Projects Award –

Airports/Transit

The new LaGuardia Airport Terminal B Parking Garage was built by

the Skanska Walsh Joint Venture for the Port Authority, which owns and

operates the airport. The massive structure is seven floors, each the size of

two football fields. At 1.14 million square feet and with more than 3,100

parking spots, the garage increases capacity of the prior parking areas by

600%. It leverages recent parking innovations such as an Intelligent Parking

Guidance System, which provides users with a real-time view of space

availability per floor.

Contractor: Vericon Construction Company

Project: 30 Montgomery Street, Jersey City

Award: NJBIA 2018 New Good Neighbor Award

Vericon Construction Company served as construction manager for the

revitalization of the 318,708-square-foot, 15-story 30 Montgomery Street

building. The previously outdated facility, built in 1974 at the corner of

Montgomery and Green streets in Jersey City, was causing a significant

Award-Winning Projects


disconnect between the building, its business and the surrounding residen-

tial neighbors. Onyx Equities of Woodbridge and its then co-owner,

Rubenstein Partners, decided to take on the full transformation and revive

the existing space in hopes of creating new jobs and a new reputation

among the neighbors.

Over 18 months, 30 Montgomery’s scope of work included reconfigur-

ing the façade, vaulting the lobby, replacing tenant HVAC controls,

installing a new conference center, renovating elevators, landings and rest-

rooms, and replacing nearly 1,800 windows throughout the building. With

the capital improvements at 30 Montgomery, the transformed building is

now an inviting yet secure place to host businesses, which currently

employs 1,200 individuals and has greatly impacted the site’s role in the

neighborhood. The base of the building, with its iconic “30” logo, now

serves as an amenity to the surrounding blocks.

Contractor: Turner Construction and Torcon, Inc.

Project: Central King Building, NJIT, Newark


This $99 million historic renovation project was under the direction of

Turner Construction for the first phase and Torcon, Inc., for the second.

Built in 1911 as Newark’s Central High School, the renovation preserved

the “Collegiate Gothic” design and architectural details, including gar-

goyles on the roof. The Central King Building, now a hub for collaborative

learning, contains three main areas: The Center for Innovation and

Discovery, the Biological Sciences Education and Research Center and the

Teaching and Learning Center. The space was transformed into new class-

rooms, laboratories, offices, a STEM tutoring center, a writing center, a

math emporium and the New Jersey Innovation Institutes iLabs, where

workforce interacts with economic development.

Turner provided construction management services for 48,000 square

feet of fit-out space on the 3rd Floor, including new classrooms, instruc-

tional labs and associated set-up spaces, and bathrooms. The 4th Floor

included new faculty offices, research labs and associated set-up and stor-

age areas, and bathrooms. The scope of work also added a new six-stop ele-

vator, new HVAC equipment located both on the roof level and in the

mechanical room on the lower level, all piping and duct work, electrical

power, new windows on each floor and a new skylight at the roof level.

Torcon’s renovation of 128,000 square feet on the lower floors created

classrooms, lecture halls, faculty offices, gathering spaces, study spaces and

exhibit space in which student projects can be viewed and demonstrated.


Heading

The exterior brick façade of the 1912 building was repaired and a new roof

was installed for both the original building and the 1969 addition.

Sitework and surrounding roads were also improved. The 1969 gymnasium

building was completely gutted and the façade removed and re-built to cre-

ate NJIT’s Center for Innovation and Discovery. The project is certified

LEED Gold.

Many other ACCNJ members worked on the project, including Beach

Electric, Central Salvage Co., EDA Contractors, Fromkin Brothers,

Mathusek, Prestige Millwork, Unique Scaffolding and Zack Painting.

Contractor: Turner Construction Company

Project: Princeton University Lewis Arts Complex, Princeton

Awards: NJBIA 2018 New Good Neighbor Award

ENR New York Best Projects (Culture/Worship)

The $330 million, 147,000-square-foot project features three contempo-

rary buildings that share a common reception area and offer public space

for two restaurants, an art gallery, a black box theater, a dance studio and a

music rehearsal room. The dance and music spaces also serve as rehearsal

and performance venues. The facility offers a 200-seat lecture hall and an

Arts Plaza with a reflecting pool and skylights.

An 8,000-square-foot underground open forum links all three

buildings and holds the lobby and indoor gathering space. More

than 2,400 craftworkers were engaged during construction of the

multi-phase project.

Contractor: Turner Construction Company

Project: Mallinckrodt Pharmaceuticals Specialty

Brands Office, Bedminster


Through its $38-million investment in the Somerset Financial Center,

Mallinckrodt established a major regional office for its marketed and devel-

opment products in the firm’s hospital therapies, autoimmune and rare

diseases businesses. Two three-story buildings totaling 230,000 square feet

were renovated and converted to Class A office space, with more than 70%

devoted to an open floor plan for collaborative work. Accommodating

more than 400 employees, the space features high-wall elements built

around the core to allow natural light.

The project included a full-service cafeteria, fitness center and data cen-

ter, with varied meeting area options throughout. Major base building sys-

tem upgrades installed new energy-efficient LED lighting and a daylight

harvesting control system tied into a master lighting control panel that

intelligently provides light determined by motion detectors.

Award-Winning Projects

© David Sundberg / Esto


Contractor: TN Ward Company

Project: Rowan University

Engineering Hall, Glassboro

Award: NJBIA 2018 New Good

Neighbor Award

TN Ward Company constructed the three-

story, 88,000-square-foot Engineering Hall

expansion for the Henry M. Rowan College of

Engineering. The addition of this new facility –

driven by a steady demand for increased enroll-

ment over the last several years – will enable the

College to expand programming and accommo-

date an additional 500 students in its growing

Engineering programs. An elevated link bridge

connects Engineering Hall to the original Rowan

Hall and spans a campus roadway – creating a

gateway off Bowe Boulevard on Rowan’s main campus in Glassboro.

The innovative facility includes 19 research and teaching laboratories;

four classrooms; 14 collaboration rooms; six conference rooms; four

administrative suites, 33 faculty and 28 graduate offices; dining facility;

and support spaces for STEM (science, technology, engineering and

mathematics)-related academic programs. The dean’s offices and students’

interactive spaces reside within the link bridge that also has solar panels

on the roof.

Features of the building include first-floor labs that open to the out-

doors, extending space for numerous projects including those involving

automotive engineering, solar arrays and drone technologies. The College’s

Center for Sustainability also has a dedicated wing within the facility for

studies including alternative energy as well as dedicated lab space for

specific departments. Additional spaces include biomedical engineering

laboratories, and water and hydrology, cell culture and wireless communi-

cations labs.

Other exterior features include the Bridge Terrace/Patio on the third

floor that provides a spacious outdoor environment for special gatherings.

The building’s green roof features drought-resistant plants, an example of

environmental engineering principles that have been blended into the

building design. Another unique aspect of the facility is that it features two

public artworks inspired by engineering.

The project scope also encompassed new landscaping, surface parking,

the addition of traffic signals, and roadway access improvements including

an added roadway serving the college surface parking lot as well as the

adjoining high school.

The $70.6 million project created more than 260 construction jobs.

Also Winning Awards in 2018:

AECOM Tishman Construction Co.

3 World Trade Center

ENR New York Best Projects (Office/Retail/Mixed-Use)

Barr & Barr

The Bloomberg Center

ENR New York Best Projects, Award of Merit (Higher

Education/Research)

Joseph Jingoli and Son

McCarter Swtiching Station Art Wall

ENR New York Best Projects (Landscape/Urban Development)

Turner Construction Co.

David H. Koch Center of New York-Presbyterian

ENR New York Best Projects (Healthcare)

© Jeffrey Totaro


HeadingAssociate Member Expertise

The impact of Revenue from contracts with customers (ASC 606)affects virtually all entities who enter into contracts with cus-tomers, whether public, private or not-for-profit. ASC 606 willcompletely replace all revenue guidance under US Generally Accepted

Accounting Principles, including the existing guidance for construction-

type contracts under SOP 81-1. This far-reaching revenue recognition

framework will impact a construction company’s accounting systems and

processes, financial reporting and documentation functions, operating

software systems, internal controls and financial ratios. Construction com-

panies will need to exercise subjective yet consistent judgment when

reviewing and accounting for revenue from contracts with customers under

ASC 606.

ALERT: Private construction companies will need to comply with ASC 606 for

financial reporting periods beginning after December 15, 2018.

One might say, “Well, is this really going to impact my company? I am a

small contractor, my costs are my costs, and my revenue recognized is not

going to change.”

There may be some truth to that comment. However, until the construc-

tion company’s man-

agement walks a

representative sample

of its contracts

through the new ASC

606 guidance, they

cannot be sure of that

belief. This assessment

is imperative because the accounting can vary significantly depending on

the conclusions drawn. Once the assessment is completed, it is possible the

application of ASC 606 may only yield a few adjustments, both at the tran-

sition stage and the ongoing application of ASC 606. Nonetheless, the

application of the new standard will indeed require more robust financial

statement footnotes for revenue recognition.

While ASC 606 retains the current percentage-of-completion method of

recognizing revenue on long-term construction-type contracts, there are

refinements to the costing inputs that may require a planned and extended

effort on the part of the contractor’s management teams. This particularly

includes enhanced communication among the accounting, project manage-

ment and estimating departments. For example, companies now need to

identify specific job costs associated with mobilization activities such as

costs to move personnel, equipment and materials to the project site in

order to account for separately and capitalize in accordance with ASC 606

rather than accelerate costs-to-date entirely upfront. If they haven’t already

done so, contractors need to begin identifying the impact to their financial

statements, financial performance metrics, financing and tax planning.

Consider the Following Advice…

One might ask why. Well, for example, if a company has a reporting cycle

that ends on December 31, 2019, and issues comparative financial state-

ments, then the company will need to choose one of the two available tran-

sition methods, each having qualitative and quantitative considerations

that take careful analysis, a collaborative effort by management and

enhanced internal documentation to implement. For these reasons, con-

struction associations across the country are doing everything they can to

educate and alert their members on the urgency of assembling an internal

revenue recognition

task force, digest the

new ASC 606 stan-

dard, review all their

existing in-place con-

tracts, apply the new

five-step process for

revenue recognition,

determine the transi-

tion method they wish to use to adopt the new standard, and communicate

with their trusted advisors on any anticipated effects.

The fundamental principle of the new five-step recognition process is to

recognize revenue such that it depicts the consideration the company

expects to be entitled to in exchange for the transfer of promised goods or

services to its customers. The key to this five-step process is that the steps

are to be achieved consecutively, or else proceeding to the next step will not

be possible.

The New Revenue Recognition Accounting: WhatWill the Impact Be for the Construction Industry?By Ron Martino, Jr., CPA, CCIFP®, Withum)


Five-Step Revenue Recognition Process

So again, one may say, “This will probably have little to no impact on my

financial statements.” However, to further emphasize the importance, I

liken the ASC 606 implementation process to that of injuring your ankle.

Would you rather run to the urgent care center, receive treatment and be

told you have a very bad sprain injury versus not seeking care and finding

out after weeks of letting it go you did in fact break your ankle and now

require more extreme, painful measures to correct it?

Many are saying the implementation process will be a good exercise for

companies and a sort of renewal process for clarifying terms within exist-

ing and upcoming long-term contracts. Starting the implementation

process now before the overwhelming year-end close period will prove

essential for all companies. The early implementation will enable the

improving or enhancing of accounting policies and procedures, the devel-

opment of significant judgments and estimates, the identification of per-

formance obligations, the assessment of the probability of collection, and

the analyzing of contract modifications, including change orders, time and

material tickets, incentives and/or liquidated damages. Furthermore, a

proactive implementation process will allow companies time to exchange

dialogue with their trusted advisors regarding the anticipated effects to

their financial statements and related disclosures, financial performance

metrics, financing and tax planning before the year is out.

Ultimately, construction companies will have to make several new, sig-

nificant judgments and apply several new concepts upon adoption of the

new revenue recognition standard – ASC 606. They may reach different

conclusions about the number of performance obligations or the amount

and timing of variable considerations (e.g., performance awards or claims)

to include in the transaction price. Even if the accounting impact is mini-

mal, companies are realizing now the implementation of the new standard

takes more time and effort than originally anticipated. Benjamin Franklin

said it concisely, “If you fail to plan, you are planning to fail!”

Ron Martino is a Partner at Withum, Team Leader of the Construction Services Team and ASC 606 Revenue Recognition Specialist. A licensed Certified Public

Accountant in New Jersey and Certified Construction Industry Financial Professional (CCIFP®), Ron has more than 20 years of professional experience, providing

attest, tax and consulting services to contractors, suppliers, manufacturers and distributors.


HeadingEducation & Workforce Development

Internships have become incredibly important for students to showtheir dedication, experience and skill to future employers. However,while programs that offer help finding paid internship opportunitiesand scholarships are welcomed, they are increasingly difficult to find.

This summer, 44 students had the opportunity to spend 12 weeks

working alongside some of New Jersey’s top contractors, thanks to the

Construction Industry Advancement Program of New Jersey’s

Grosso/Davis Scholarship Program. Through CIAP, students have the

opportunity to grow their knowledge gained in the classroom and put it

toward hands-on experience. However, the students and CIAP are just

two of the three key factors needed for the program’s success. Without

the dedication of contractors and employers that hire student interns,

CIAP’s goal of exposing students to applied construction and engineering

work would not be possible. Each year, the selected students show

their impressive talents that will guide them to become leaders in the

construction industry.

We randomly selected comments from students and supervisors for you to read.

Let It Grow, Inc.

Chris DeBlasio, a student at the New Jersey Institute of Technology,

interned alongside project engineers and has an open invitation to return

and continue his work in the future:

“The work I was performing on a day-to-day basis was rewarding, educating,

and gave me in-depth, firsthand insight into a professional office workspace and

first-class business. I was relied upon to complete significant and important

tasks necessary to submittal and bidding processes.”

Chris was recently diagnosed with Hydrocephalus, which is a buildup

of the cerebral spinal fluid in the cavities of the brain. With that came the

discovery of a tumor known as an Intracranial Germinoma, an extremely

rare tumor that is a buildup of germ cells in the pineal region of the brain.

ACCNJ and Let It Grow are thinking of Chris and hoping for a quick

recovery. You can help Chris and his family with their medical expenses

here: https://www.gofundme.com/chrisdeblasio

Skanska USA

Michael Postorivo, a University

of Delaware student, just

completed his second internship

through the CIAP:

“Thanks to the CIAP program

and Skanska USA, I was able to

build on what I had already learned

over the last year. Making the switch

from highway to building construc-

tion made me realize how much

there really is to learn. Following this second internship, I am certain that I am

going to continue my career in the construction industry.”

Joseph A. Natoli Construction

John Garcia, a student at Fairleigh Dickinson University, had this to say

about his summer experience:

“I was very grateful to get an internship with Joseph A. Natoli Construction this

summer. I was able to work alongside estimators, project managers and superin-

tendents. I was able to participate in multiple bids and truly enjoyed the bid-day

dynamic and how everyone worked together to help the chief estimator. Overall,

this internship has opened my eyes to many things, and it has shown me that you

really must be good with people in this industry. I truly enjoyed this experience.”

J. Fletcher Creamer and Son, Inc.

Bridget Costello, an

engineering student at

Rowan University, will

continue her internship

this fall. She has also

accepted a full-time posi-

tion post-graduation:

“It feels as though I have a firm grasp on all of my assigned tasks, and due to

my training here, I am able to take what I have learned and apply it to my work

in the future. All of the work I did directly related to current projects, so I was able

to make contributions to actual work that was taking place.”

Building Relationships, Gaining Experience andShaping the Workforce: Internships Pay OffBy Jill Schiff, Executive Director of Operations and Abby Adams, Associate Communications Director


Crisdel Group, Inc.

Barry Hill, Estimator, said this

of Sarah Edery of Rutgers School

of Engineering:

“Sarah’s work comprised of her

splitting her time between our main

office with the office engineering

department and in field operations

assisting project management staff.

While in the office, Sarah did an

excellent job assisting our team

putting estimates together for

projects. In our field operation, Sarah received valuable experience working with

our experienced project management staff on large-scale civil construction proj-

ects. Her exposure to our office and the field should help positively shape her

future in our industry or whatever career path she takes.”

Moretrench

Brothers Joshua and Jorge Liviapoma, students in Rutgers School of

Engineering, interned in the grouting branch and the geotechnical depart-

ments respectively. Joshua said this about his grouting experience:

“Having no prior

engineering experience,

being able to transition

my course work into

proper engineering

applications has allowed

me to better myself as a

future engineer.”

After working in the geotechnical department, Jorge provided

these comments:

“I gained a plethora of knowledge about the geotechnical construction industry

and how it works. I was supervised by great leaders and mentors who were always

around and willing to help me out with any problem or answer any question.”

Union Paving & Construction Co., Inc.

Daniel Barwicki, Project Manager, said this of Rachel Feldstein of Rutgers

School of Engineering:

“Rachel treated each assignment as a learning experience, as she wanted to

know how her work fit into the big picture. When given a task, she would take on

the challenge willingly and she completed each assignment to the best of her

ability. One of her qualities that impressed me the most was that she would try to

figure things out on her own, before asking questions. This shows initiative and

the ability to complete a task with limited assistance or repeated direction.”

AECOM Tishman

Kenneth Cord, Superintendent, reported this about Marco Fernandez, a

New Jersey Institute of Technology student:

“Marco possesses several outstanding qualities that impressed our entire staff.

He is very intelligent and has boundless curiosity. He is fearless in what many

consider an intimidating environment. He quickly became an asset to our team

and project. From the craftworkers to the executives, Marco was well-liked and

relied upon for a tremendous variety of tasks.”

Waters and Bugbee

Robert J. Klemt is a student at The College of New Jersey and said this of

his experience interning in construction management:

“I never knew how much work and oversight went into producing the final

product. In order for it to run efficiently, everyone is required to contribute for the

success of a strong functioning system. Working in the field was definitely a

challenge and I was proud to be a part of the experience.”

Hall Construction Co., Inc.

Michael J. Kelly, Quality Control Manager, had this to say of Taylor Groves,

a student at Rowan University:

“Taylor became an integral part of our team here at Millville Senior High

School (MSHS) straight from the get-go. Her engineering school work and

practical experience were instrumental in implementation of policies and proce-

dures at project commencement. She was unique for the position, being a former

student at MSHS. Her work product was always timely, thorough and accurate.”

Weeks Marine, Inc.

Marat Kotik, a student in Rutgers

School of Engineering, interned

in the engineering department:

“After my time in the engineering

department, I moved to the field at

Pier 40 in New York City. I kept track

of daily work progress. The work was

very different from the office because

the daily activities were less pre-

dictable. Various problems would come up all the time and solving them was both

interesting and challenging.”


HeadingFeature: AGC of America 100 Years

Making Sure AGC ofAmerica RemainsFocused on the FutureBy Eddie Stewart, President, AGC of America

When the group that would become the founders of theAssociated General Contractors of America gathered inChicago in the fall of 1918, many of the contractors in theroom were fascinated by the device the stenographer was using to record the

meeting minutes. Many of them had never seen a contraption of its likes

and were amazed by how it made it so much easier to record their words

and deeds. Fast-forward one hundred years, and nobody bats an eye about

the fact everyone has a powerful personal computer, phone, camera and

recorder combined into a single device that fits into a pocket or a purse.

Just as personal technology has evolved during the past century, so too

have the tools, techniques and technologies that contractors use to build

projects. And during that time, contractors have been able to count on the

Associated General Contractors to help them understand and successfully

adopt many of the advances that we now take for granted.

It was AGC, after all, that helped construction firms identify and adopt

much of the safety devices that are now not only commonplace but manda-

tory on jobsites. And when computers became commercially available in the

middle of the last century, it was AGC that helped firms figure out whether

and how to profitably harness their potential.

In recent years, AGC of America has played a key role in helping the

construction industry embrace and benefit from Building Information

Modeling and the many technological advances it enables. Our BIM

Education and Credentialing programs have helped thousands of

construction profes-

sionals learn how to

take advantage of BIM.

And our BIMForum

has served as the

industry venue for

learning about the

latest advancements

and innovations related

to BIM and beyond.

We are making similar

advancements with

our LEAN Education

and Credentialing

programs.

But we know a host

of new technologies are

on the way and the rate

of transformation is only going to accelerate. GPS and drones, for example,

are already common on many construction projects and are likely to

become even more prevalent. Meanwhile, technologies like robotics,

exoskeleton, smart personal protective equipment and autonomous

vehicles are already being introduced onto jobsites across the country.

These new technologies and many others like them have the potential to

radically transform the current construction process. The ramifications are

broad and have the potential to impact everything from productivity and

profit margins to scheduling and safety performance.

Our challenge is to figure out how to make sure these new technologies

and the techniques they inspire benefit all member firms. That is why AGC

of America is launching a new effort to make sure we are focused on the

Cover of first issue, Constructor Magazine, July 1919 (Courtesy of Constructor Magazine)


AGC CEO KeynotesACCNJ Fall Convention

As AGC of America celebrates 100 years of national leadership in the construction industry, CEO Stephen Sandherr took timeto keynote the Friday morning session on September 7, 2018,during ACCNJ’s Fall Convention at Ocean Place Resort & Spa in

Long Branch.

ACCNJ CEO Jack Kocsis introduced Sandherr as one who has

“represented our interests in the country for 31 years,” calling Sandherr

very knowledgeable and a person who understands unions. Early in his

career, Sandherr was in fact a member of the Teamsters Union and joined

the staff at AGC of America in 1984 as Assistant Director of Collective

Bargaining Services.

Tax Bill Defines AGC Model for Legislative Issues

AGC started advocating for construction firms early on in the legislation

process that ultimately produced the Tax Cuts & Jobs Act of 2017, Sandherr

explained, with a focus on firms that were LLCs, not corporations.

“Most AGC members were paying an average effective tax rate of 30.3%,”

he said, “and we wanted a break for them, so we aligned with other small-

business groups. We also wanted to simplify the tax code, protect munici-

pal bonds and PABs, and get the best deal for pass-through entities.”

After compiling a group of expert advisors to evaluate the federal pass-

through proposals and refusing to endorse the first proposal introduced in

Congress, AGC and Sandherr were “pleased” to get a 20% tax deduction for

pass-through businesses.

“The process we followed for the tax bill defines the model we use in

addressing federal legislative issues,” said Sandherr. “It’s collaborative and

always focused on member interests.”

Sandherr’s Take on Other Government Affairs

Federal Infrastructure Spending. “We want to see robust spending, but

we recognize the political realities,” commented Sandherr. AGC’s 60-page

document, submitted to Congress, broadly defines infrastructure goals,

permitting reform and the workforce. And AGC is a vocal member of the

Infrastructure Working Group, more than 100 organizations lobbying for

federal infrastructure spending.

Permitting Reform. AGC created a chart to demonstrate how difficult it is

to get permits from federal agencies. The view is so “indefensible,”

Sandherr stated, “it has been used in several federal agencies to address the

challenges.” Sandherr declares some successes, explaining the US aims to

cut the permitting process from 10 years to two years. “To attract private

money,” he said, “you can’t have uncertainty in permitting, nor a process

that takes more than 10 years.”

Multi-Employer Pension Plan Reform. ACCNJ members were kept up-to-

date on the AGC initiatives that led to the Multi-Employer Pension Fund

Reform Act of 2014. Since then, AGC has actively sought a composite plan

design, working collaboratively with the Building Trades and federal legis-

lators. As this issue goes to print, Sandherr expects the Congressional Joint

Select Committee will report its findings following the midterm elections

(the Committee’s report deadline was November 30). Sandherr added that

if Congress does not pass legislation, AGC will continue to push for a sensi-

ble solution based on studies and proposals from private groups.

future. As part of this effort, we are putting in place a system for separating

the technologies firms need from the ones that are just noise. Then we will

create programs to enable members to successfully adopt these vital new

technologies and the techniques they permit.

We have come a long way from the time when a stenographer’s machine

would fascinate our members. AGC of America and its chapters have helped

make sure member firms have kept pace with these changes. But with new

technologies and new techniques set to arrive at ever greater rates, our new

Future Focus effort is designed to make sure every one of our members will

have the resources needed to succeed in the markets of tomorrow.

Eddie Stewart is the President and CEO of Montgomery, Alabama-based

Caddell Construction Co.Ironworker on Empire State Building project, New York 1930

(Photo by Lewis Hine)


HeadingGovernment Affairs Report

Both houses of the New Jersey Legislature are in full swing as we headinto the holiday season. Hot-button issues such as raising the mini-mum wage, legalizing recreational marijuana, retooling public workerbenefits and authorizing shared services at local levels of government are primed

for future legislative action. ACCNJ’s strong presence within the Statehouse gives

the Association unique vantage points on major policy initiatives. These three

issues directly impact the construction industry…

Transit Development

An ACCNJ-supported legislative measure signed into law in November

requires the New Jersey Transit Corporation (NJ Transit) to establish an

office of real estate economic development and transit-oriented develop-

ment. Specifically, the office is charged with assessing and generating rec-

ommendations for economic and transit-oriented development for parcels

of real property in which NJ Transit holds an interest. This office can serve

as a single-point-of-contact for potential project offerors that may translate

into an increase in NJ Transit’s non-fare revenue sources. The office is to

report its recommendations annually through 1) a description of each par-

cel of real property it owns; 2) the most recent appraised value of that prop-

erty; and 3) any revenue the corporation receives that arises from the

property interest.

Airport Projects

Legislation making its way through the Statehouse this Fall would elimi-

nate a tax exemption commercial airlines receive on their use of aviation

fuel. This legislative action would ensure funding needed to complete the

Port Authority Trans-Hudson Corporation (PATH) rail service extension to

Newark Liberty International Airport and other airport capital projects

that qualify as federally permitted uses of revenue from aviation fuel taxes –

including economic development opportunities in and around PATH tran-

sit hubs. Current law dictates commercial airlines are exempt from taxation

on interstate and foreign flights except for the portion of aviation fuel used

during taxiing and take-off. The bill would tax entire receipts from the sale

of aviation fuel at the rate of four cents per gallon. The only exemption

would be when the fuel is consumed by a commercial airline at a New

Jersey airport with fewer than 20,000 commercial flights per year. At the

time of this writing, the bill has been voted out of the full Senate and awaits

action in the General Assembly.

Securing Our Children’s Future Bond Act

An ACCNJ-supported ballot referendum – the only question on the 2018

mid-term elections ballot – was passed by a narrow margin of the voting

public on November 6. The $500 million Securing Our Children’s Future

Bond Act will provide a combined $350 million for security upgrades in K-

12 schools and career-technical education in county vocational schools, $50

million for facility expansion at community colleges and $100 million for

in

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