Transcription
SPRING 2016THEQUARTERLYA PUBLICATION OF THE WALL AND CEILING ALLIANCE10 Pitfalls to Avoidwith Succession of a Family-Run BusinessPAGE 14Register for OurCEA Show!PAGE 22CRAB FEED at Fishermen’s GrottoPAGE 10
THE PRESIDENT’S CORNERANNOUNCING NEW BOARD OF DIRECTORSWACA has a very strong leadership foundation in place with our new board appointments. Each of these individual’s professional background and commitment to our industry will bring insightful perspective to our board.Earlier this year, WACA held elections for nine openboard positions. And thanks to our members’ votes, wehave elected eight board of directors. If you supportedand participated in our election process, thank you.Our new board elected directors for 2016-2018 are:Shawna Alvarado with O’Donnell Plastering, Inc.; DonArchuleta with KHS&S Contractors; Steve Eckstromwith California Drywall Co.; David Link with PerformingContracting, Inc. (PCI); Kristen Meiswinkel with RFJ Meiswinkel Company; Tim Stiller with Raymond-NorthernCalifornia, Inc.; John Sytsma with Anning-Johnson Company; and Jim Watson with SCS - Swinerton Builders.Nancy Brinkerhoff,ICBI President andPresident of WACA’sBoard of Directorstive membership. So if you are interested in becoming more active with WACA, contact our office at(925) 600-0475.Thank you for your time, and I will see you at ournext event.We’re confident this recent assembly of industry leaders — which has a combined board experience of over30 years — will continue to effectively serve our membership and promote our industry.I’d like to take this opportunity to encourage ourcontractor members to get more involved with theassociation. There are a number of ways you cansupport our group, such as by attending eventsand joining negotiation committees and conference boards. We endorse new board representationand ideas for the growth of our association’s futuredevelopment. The only way we can continue toinnovate our group and stay ahead of the curveis by having a diverse board of directors and ac-Board of DirectorsJim Ruane, Vice PresidentPatrick J. Ruane, Inc.Tim Stiller, Secretary/TreasurerRaymond-NorthernCalifornia, Inc.Shawna AlvaradoO’Donnell Plastering, Inc.Steve EckstromCalifornia Drywall Co.Kristen MeiswinkelRFJ Meiswinkel CompanyDon ArchuletaKHS&S ContractorsRoger E. Henley, Jr.Henley & CompanyJohn SytsmaAnning-Johnson CompanyGregg BradyBrady Company/CentralCalifornia, Inc.David LinkPerformanceContracting, Inc. (PCI)Jim WatsonSCS - Swinerton BuildersTHENancy Brinkerhoff, PresidentIronwood CommercialBuilders, Inc.QUARTERLY 3
THE10Crab Feed atFishermen’s Grotto1410 Pitfalls to Avoid withSuccession of aFamily-Run Business2016 Wall & Ceiling Expo.16Harassment Prevention Training.19Construction Excellence Awards Show Announcement.22The President’s Corner.3WACA Board of Directors.3Legislative Report.6The Technical Corner.8Associate Member Spotlight.17Contractor Member Spotlight.18Safety Update.20WACA’s Save the Dates.24Stay in the Know.24Welcome New Members.25WACA Members.26Thank You to Our Advertisers!EDITORIAL STAFFCarmen Valencia-CastilloMarketing and Communications DirectorFrank E. NunesExecutive DirectorJulie DunawayMarketing Communications CoordinatorPUBLISHING TEAMHilti, Inc. 7Matt WoodArt Director/Design Managerwww.jhs.comPlastic Components. 25www.plasticcomponents.comPlexxis Software. 5www.plexxis.comADVERTISERSThe Wall And Ceiling Alliance (WACA) servesand represents signatory wall and ceilingcontractors in Northern California’s 46 counties.WACA provides resources that assist membersin operating a successful business. Among theservices and activities provided are educationalforums, technical assistance, governmentadvocacy, labor relations, industry promotion,marketing and networking opportunities.Josh PierstorffEditorJones, Henle & Schunck (JHS). 25THEWall And Ceiling Alliance5726 Sonoma DrivePleasanton, CA 94566Office: (925) 600-0475Fax: (925) ndceilingalliance.orgCWallA. 2,9www.hilti.comQUARTERLYSpring 2016Volume 3, Issue 2Innovative PublishingPublisherwww.cwalla.com A publication of the Wall And Ceiling AllianceCEMCO. 23www.cemcosteel.com4QUARTERLYLiUNA/NCDCL. 24www.ncdclaborers.orgSCAFCO Steel Stud Company.27, 28Samantha RubsamSales/Marketing ConsultantInnovative Publishing specializes in creating custompublications for associations and businesses.www. innovativepublishing.comOn the cover:Sharp Shots Aerial Photography,Avaya Stadium, San Josewww.scafco.comStructus Building Technologies. 13www.structus.comWright Bros. Supply. EATURESTABLE OF CONTENTS
LEGISLATIVE REPORTWhat’s Up with the NewDIR Electronic Certified Payroll Reporting?by Eddie Bernacchi, Politico GroupPublic works reforms (SB 854) were signed into law on June 20, 2014, as part of the state budget. Thereforms made several significant changes to the administration and enforcement of prevailing wagerequirements by the Department of Industrial Relations (DIR).One section of SB 854 required DIR toestablish an electronic certified payroll reporting (eCPR) system for which, beginning January 1, 2016, all contractors andsubcontractors must furnish electroniccertified payroll records directly to the laborcommissioner (also known as the Division ofLabor Standards Enforcement) through theeCPR system. The phase-in timetable for thisrequirement was as follows: June 20, 2014: Any project being monitoredby the compliance monitoring unit (CMU)/labor commissioner prior to the adoption ofSB 854 will continue to be monitored by thelabor commissioner afterward, and the contractors on those projects must continue tofurnish certified payroll records to the laborcommissioner until the project is complete. April 1, 2015: For all new projects awardedon or after this date, the contractors and subcontractors must furnish electronic certifiedpayroll records to the labor commissioner. January 1, 2016: All contractors (exceptthose listed as exemptions just below) mustfurnish electronic certified payroll records tothe labor commissioner through the eCPRdata system.SB 854 also required that awarding bodies submit a PWC-100 notice (contract award notice)for all public works projects to DIR. An awardingbody must submit a PWC-100 in order for contractors to submit their eCPR. Awarding bodiesare required to provide notice to DIR on all projects within five days of project award. Awardingbodies must register in the PWC-100 projectregistration system (https://www.dir.ca.gov/pwc100ext/) in order to notify DIR of their publicworks projects.Once the program launched, our officefielded numerous calls and emails from contractors who were frustrated with the neweCPR system. The most common complaintwas that previously existing payroll systemsused by contracting agencies were more user-friendly than the XML format DIR chose.On behalf of our contractors, we beganmeeting with the DIR to discuss the issuesour contractors were having with implementation of the system. To its credit, DIR listenedto our concerns and issued a notice to allawarding bodies clarifying that contractorsshould not be penalized based solely oninformation in the DIR’s eCPR system. Thatnotice was needed to protect contractorsfrom improper payment withholdings, butunfortunately did nothing to relieve the burden on contractors who have been spending an inordinate amount of time and moneytrying to comply with the system.To address this issue, we were able to persuade DIR to issue an additional notice thatputs the eCPR system on hold while DIRworks on improvements to the system. Thehold applies to all public works projects thatwere subject to the eCPR requirement. Contractors are still expected to comply with theDIR public works registration requirementsfor themselves and any subcontractors orservice providers who perform work coveredby prevailing wages, as well as all other certified payroll reporting requirements. However, there is no need to use the DIR eCPRsystem until further notice.DIR has issued additional notices providingclarification that it does not plan to requireretroactive submission of eCPRs once it hascompleted the upgrades to the eCPR system,along with a reminder to awarding entities toregister projects by using the PWC-100 form.The improved system will begin testing, andDIR anticipates having the system ready byJuly 2016.6 THEAll relevant notices can be found at thefollowing links: Notice to awarding bodies: www.dir.ca.gov/Public-Works/Public Works Notices.html Notice of eCPR delay: www.dir.ca.gov/Public-Works/eCPR important notice.pdf Notice clarifying eCPR requirement: www.dir.ca.gov/Public-Works/Notice ClarifyingCPR Requirements.pdfQUARTERLY
THE TECHNICAL CORNERBuilding Envelope Certification Program 2016The WCB team, Ben Duterte and Mike Nonn, attended the recent Building EnvelopeCertification Program in Las Vegas, held February 29 to March 4, 2016, at the UnitedBrotherhood of Carpenters International Training Center. The certification programis intended to provide its members, contractors and wall and ceiling representatives with a higher knowledge base of quality industry deliverables and safety practices employed.This program is part of the overall mission of the Carpenters International Certification Council (CICC) to improve performance, reduceworkplace risk, and safeguard personnel; in addition, the CICC oversees that only trained, skilled and qualified individuals complete the work.In order to qualify for the building envelope certification assessments,candidates first attend a minimum of 36 hours of training for each of thefive certifications, which includes both knowledge transfer and practicalsafe application. The prerequisite course content for a master certificationincludes quality control, building science, and envelope testing and corrections as they relate to the air and moisture barrier, spray foam barrier andthermal installation. The prerequisite training addresses installation of theair and moisture barrier, spray foam barrier and thermal barrier.A variety of certification options are available to the candidates.Five distinct building envelope certifications exist within threedifferent levels:Level 1 – Technician Certified building envelope technician (CBET)Level 2 – Specialist Certified building envelope specialist for air and moisture barrier(CBES – Air and Moisture Barrier) Certified building envelope specialist for thermal barrier(CBES – Thermal Barrier) Certified building envelope specialist for spray foam barrier(CBES – Spray Foam Barrier)Level 3 – Master Certified master building envelope specialist (CMBES)Each level in the program supersedes the previous level, such thatBuilding Envelope designees have to first complete the initial training and pass a written exam in order to become a certified buildingenvelope technician (CBET). CBETs are then eligible to train and testto become a certified building envelope specialist (CBES) in any orall of the three above-mentioned areas. The highest level in the program, certified master building envelope specialist (CMBES), can onlybe reached if a member is first certified and current (not expired) inthe three CBES specialties.Our technical team took the Level 1 – Technician course. “I thoroughlyenjoyed the building envelope principles course,” Technical DirectorBen Duterte said. “The course material was up to date and presentedin a way that directly relates to field application.8 THE“Covering several topics, the building envelope principles course incorporated a building science approach to understand the interaction among occupants, building components, building systemsQUARTERLYEach level in the program supersedes theprevious level, such that Building Envelope designees haveto first complete the initial training and pass a writtenexam in order to become a certified buildingenvelope technician (CBET).and the surrounding environment. Creating a comfortable living orworking environment for the people who occupy the building wastaught in a way that describes how properly installed and compatiblecomponents are essential when constructing the building envelope,”he explained.“This was a challenging yet rewarding course. Participants shouldexpect a combination of course work and hands-on training. I foundthat refreshing the day’s material at night with my classmates wasextremely helpful. This course will sharpen your knowledge and skillsand make anyone who takes the course more comfortable in allaspects of the building envelope,” Duterte summarized.This program is an ongoing course. Multiple trainings are availablefor interested candidates. If you are a contractor and would like tolearn more about signing up to the program, visit their website atwww.ubccertifications.org or email CICC@carpenters.org.
CRAB FEED at Fishermen’s Grotto“WACA’s Crab Feed is a great opportunity to network with customers in a casual atmosphere. We canget to know each other better and develop stronger business relationships.”– Sandra Collins, Account Manager, HILTIThe California ban on crab lifted the same week as this event, sothe catch couldn’t have been fresher. Members were hosted ata new venue to better accommodate the growing crowd. Theevent was held at No. 9 Fishermen’s Grotto right by the water. Attendees were treated to spectacular views of the bay at sunset. The socialhour was held from 4-5 p.m. with dinner following, starting with thefamous San Francisco sourdough bread — then salad, pasta and giantplatefuls of long-awaited, newly harvested crab.10 THESeveral raffle drawings totalling 950 in gift cards were awarded tolucky guests. As the networking and socializing continued, chilled tiramisu was served along with coffee. The WACA Board was represented by Vice President Jim Ruane, Tim Stiller, Kristen Meiswinkel, JohnSytsma and Don Archuleta.QUARTERLYCraig Daley, owner of contractor member Daley’s Drywall & Taping,Inc., said, “We really enjoy the Crab Feed. We’ve got the RV at Candlestick Park right now so we can make this a two-day trip and participate in this meeting. We did the same thing last year and absolutelyplan on attending next year!”Allen Salsbury, president of associate member Salsbury & AssociatesInsurance Services, Inc., described the benefits of attending the CrabFeed as a WACA member. “It’s great coming here. We get to meet different people every time, all in a friendly socializing mood. It’s goodto discuss experiences that everyone’s having in the field,” he said.WACA thanks Jones, Henle & Schunck (JHS) CPAs fortheir dinner wine sponsorship. All the members’ participation is appreciated.
THEQUARTERLY 11
THE12 QUARTERLY
2016 ADVERTISINGOPPORTUNITIES IN THE QUARTERLYWith The Quarterly, wall and ceiling contractors throughoutNorthern California have a valuable resource for the newsand information they need to know — straight from theassociation that’s looking out for its members’ best interests.If your company serves these contractors, there’s no betterad space opportunity for you than The Quarterly! Be sure toask about members-only rates. Get noticed — advertise withWACA today!Ad space opportunities are available in the following sizes:Back coverFull page (with bleed)1/2 page horizontal1/2 page vertical1/3 page block1/4 page block1/6 page vertical1/9 page verticalTO LEARN MORE ABOUT AD SPACE OPPORTUNITIES INFUTURE ISSUES OF THE QUARTERLY, PLEASE CONTACT:THESamantha Rubsam ERLY 13
10 PITFALLS TO AVOIDwith Succession of a Family-Run Businessby Summit Financial Group, LLCA staggering 90 percent of American businesses are family-owned or -controlled.These businesses range in size from two-person partnerships to Fortune 500 firms.Together they generate roughly half of the nation’s gross national product.Unfortunately, less than one-third of familyowned businesses survive the transitionfrom the first generation of ownership tothe second, and only 13 percent of familybusinesses actually remain in the familymore than 60 years.14 THEWhy is this longevity so challenging? It couldbe due to the specific challenges that comewith running a family-owned business or, quitepossibly, the difficulties that can happen withthe succession of a family-owned business.Following are the top 10 pitfalls that ownersof family-run businesses should avoid whenplanning their succession.QUARTERLY1. Transferring When the Business OwnerParents Are Not Financially ReadyBeing a parent, you want the best for yourchildren. Some business owner parents whohave children who are ready, willing andable to take over their business put theirchildren’s needs above their own and rush intosuccession. For parents who are not financiallyready to transfer a business, this prematuremove could devastate their retirementplanning and financial security. There are alsosome business owners who may feel financiallyready but have retirement plans that requiresignificant funding. These retirement plansmay draw resources away from the business,impeding possible growth. Waiting untilyou, the owner, are financially prepared fora transition is of utmost importance to yourretirement and the success of the business.2. Transferring Before the Business OwnerParents Are Mentally ReadyWaiting to transition until you’re financially readyis one thing — but understanding when you’rementally ready is another story. Before businessowners transfer ownership, they need to assesshow mentally prepared they are to exit.Exiting a business that has been builtby years, or maybe a lifetime, of hardwork and dedication can be a difficultemotional hurdle.
3. Transferring to Children Who Don’tKnow How to Run a BusinessIt goes without saying that many familymembers have been involved one way oranother in the family business their whole life.But being involved and being in charge aretwo very different things. Many small businessowners forget to realize that the new owners,aka most often their children, must possessor obtain very critical skills and experience tosuccessfully run the business they are takingover. If key skills and responsibilities are missingfrom the background of a successor, then yoursuccession plan must include immediate andpractical steps to cultivate that successor intoa more qualified leader.4. Not Taking Advantage ofGifting OpportunitiesThere are a number of lifetime gifting strategiesthat can be implemented by the business ownerto minimize, or possibly eliminate, estate taxes.For parents who plan to transfer the businessby lifetime gifts or at their death, gift and estatetaxes will apply based on the value of theassets transferred. To transfer the most assetsat the least tax cost, it’s important to use all ofthe discounts that are available. Experiencedappraisers, attorneys and accountants can helpmaximize these discounts for tax purposeswith minimal impact on the family.5. Failing to Document the Terms of theAgreement in WritingMany business owners assume that whendealing with family members, there is no realneed for a formal agreement. Others find it adifficult subject to broach. Consequently, oftenthere’s no written agreement of the terms.The reality is that there is less risk of runninginto future problems if family business ownersclearly define the nature of their relationship inwriting. In the unfortunate event of litigation,more often than not, the family members willfind themselves arguing over the terms of theiroral agreements. With as many recollections of“the agreement” as there are family membersinvolved, the opportunity is ripe for confusion,frustration, anger and financial disaster.6. Trying to Give Everyone an Equal ShareWhile this is a nice idea in theory, dividingyour business equally may not be in the bestinterest of your business.Management and ownership are separatebusiness succession planning issues.It may be fairer for the successor(s) you havechosen to run the business to have a largershare of business ownership than familymembers not active in the business. Or itmay be best to transfer both managementand ownership to your chosen successor andmake other financial arrangements to benefityour other children. Trying to keep everythingequal may actually prove to be more unfair inthe end.7. Not Adequately Preparing the Transferfor a Potential IRS AuditFor preparing the transfer of ownership, it isimportant to properly value the amount beingtransferred for the event of a potential audit.The IRS has a statute of limitations of threeyears to challenge the value gifted. It wouldbe in your best interest to have the businessprofessionally appraised before the transfer toavoid paying more taxes at a future date. If youare audited and cannot document the value ofthe business at that time, it will be left up to theIRS to determine the market value.To transfer the most assets at theleast tax cost, it’s important to use allof the discounts that are available.Experienced appraisers, attorneysand accountants can help maximizethese discounts for tax purposes withminimal impact on the family.8. Not Having Your Children Invest AnyMoney into the BusinessWhen you started your business, you workedhard to invest your time, money and passionto help it grow. Some family business ownersmay be tempted to offer an easier road forthe next generation — but the truth is avested interest is a necessity. Families thatsimply gift their businesses to their childrenfrequently ruin their businesses and theirfamilies — usually in that order. On the otherhand, founders of family businesses who selltheir holding to family members are typicallypoised for success.When children borrow money to investin a family business, they are assessingtheir own ability to make money and growthe business.9. Not Taking the Time to Protect YourBusiness if the Unthinkable HappensYou want to give or sell interests in the familybusiness to family members, but you don’twant those interests to stray outside the familyif there is a divorce or a death. Granted, wenever want to think the unthinkable, such asoutliving one of our children, but taking thetime to plan for various scenarios is beneficialto both the family and the business shouldanything happen. Either a trust or a buy-sellagreement can keep the interests in the familyregardless of future events.10. Failing to Review, Revise and UpdateYour Succession PlanSome businesses make the mistake of believingthat after a succession plan is written, there isno need to revise it. This is a major mistake assuccession planning is a dynamic process. It isalways evolving. One child who fully intendedto take over the business may have found adifferent direction, or maybe a child who neverexpressed interest is now involved. Therefore,succession plans must remain current andshould be periodically updated and revised.ConclusionMany of these 10 pitfalls can be avoidedwith some forethought and some advancedplanning toward your family transfer of yourbusiness. Don’t fall victim to these pitfalls as alltoo many other business owners will. Rather,be proactive with your planning, and addressthese issues in an open and honest manner. Inthe long run, such steps will benefit all partiesinvolved with the family business. 2010 PINNACLE EQUITY SOLUTIONS, INC. Complimentsof Summit Financial Group LLC Don Ledoux, CFP andAaron Peabody, CFP Financial Advisors 2000 CrowCanyon Place, Suite 450, San Ramon, CA 94583Securities and investment advisory services offeredthrough Securian Financial Services, Inc., MemberFINRA/SIPC. Securities dealer and registered investmentadvisor. Summit Financial Group LLC is independentlyowned and operated.Financial advisors do not provide specific tax or legaladvice. This information should not be considered asspecific tax or legal advice. You should consult yourtax or legal advisor regarding your own specific tax orlegal situation.Separate from the financial plan and our role asfinancial planner, we may recommend the purchaseof specific investment or insurance products oraccounts. These product recommendations arenot part of the financial plan and you are under noobligation to follow them.This information may contain a general discussion of therelevant federal tax laws. It is not intended for, nor canit be used by any taxpayer for the purpose of avoidingfederal tax penalties. This information is provided tosupport the promotion or marketing of ideas that maybenefit a taxpayer. Taxpayers should seek the advice oftheir own tax and legal advisors regarding any tax andlegal issues applicable to their specific circumstances.THEHow involved are you in the day-to-dayoperations of the business? What will youdo with your time when you are no longerrunning it? These answers will be the key tounderstanding whether you’re ready to moveforward into the next stage of your life.QUARTERLY 15
2016 WALL & CEILING EXPOJULY 29, 2016Alameda County FairgroundsFREE ADMISSION!You must register to attendRegister online by going to our Calendar of Events at www.wallandceilingalliance.org.The Wall & Ceiling Expo is the one event in the Bay Areawhere our members from the contracting industry cometogether to showcase their latest products and services.««««Can’t-miss exhibitsProduct showcasesSeminars led by industry expertsLive demonstrationsWho Should Attend?Architects, designers, building officials, contractors, general contractors, suppliers and dealers, manufacturers,industry professionals, and architectural and construc-tion management students — or anyone interested inthe wall and ceiling industry!Why Should You Attend?This event provides an opportunity to connect with yourpeers and get the most up-to-date information in ourwall and ceiling community.Want to Exhibit?Get your company noticed! Booth space is available. Boothfee: 500. Download the exhibitor registration form atwww.wallandceilingalliance.org, or email Ben Duterte,ben@wcbureau.org/Mike Nonn, mike@wcbureau.org.For more information on the Expo, contact Ben Duterte at (408) 500-2309 or Mike Nonn at (408) 337-9706.
ASSOCIATE MEMBER SPOTLIGHTAMS dba Allied Building Productsby Jim Lujan, Regional ManagerFrom the start, AMS has maintained high standards for quality whileproviding top service; this has been our commitment to our customers.At AMS we make our customers the priority.Avaya Stadium, San Josephoto courtesy of AMSAMS serves both commercial and residential construction. The Bay Area takes the lead when it comesto the Northern California business. The most recentbranch addition is our San Francisco location.photo courtesy of Sharp Shots Aerial PhotographyAllied Building Products has over 50 locationsoffering interior products throughout the UnitedStates. Each of these branches provide the following product lines: ceilings, commercial doors,drywall, insulation, plaster, steel and tools, withother varied products. Allied (a wholly ownedsubsidiary of Oldcastle, Inc.) acquired AMS inNovember 2007. This acquisition resulted in AMSbecoming part of a large public company whileoperating locally in Northern California.AMS is the exclusive dealer of Armstrong Ceilingsin California, Nevada and Hawaii. Partnering upwith major drywall and steel manufacturers suchas Georgia Pacific Gypsum, National Gypsum Co.,PABCO Gypsum, CEMCO, Consolidated Fabricators Corp. and ClarkDietrich Building Systems hasallowed us to support our customers in the residential and commercial markets. For our lath andplaster business we are the exclusive dealer forBASF Senergy here in Northern California, whichoffers EIFS, stucco and air barriers to help with Title24 requirements.The AlliedEDGE AMS has recently announced a new app designed with customers in mind, AlliedEDGE . Theapp will supply a competitive edge to contractors by providing access to AMS’ resources 24/7,including delivery tracking, payment options,online ordering, business promotion and variousgateways. The app is available now at Google Playand the Apple Store.At AMS we’re leading the way with technology.We anticipate that AlliedEDGE is going to giveNetflix B2, Los Gatosus a strong
A publication of the Wall And Ceiling Alliance Spring 2016. Volume 3, Issue 2 Wall And Ceiling Alliance. 5726 Sonoma Drive . services and activities provided are educational forums, technical assistance, government . establish an electronic certified payroll re-porting (eCPR) system for which, begin-
