June 2023
METROPOLITAN BUILDERS & CONTRACTORS ASSOCIATION OF NJ MAGAZINE
LIFE AND LUXURY, CONNECTED SEE PAGES 10-11
NAHB DEBUTS A NEW INDEX FOR MULTIFAMILY ACTIVITY SEE PAGE 24 PROPERTY AND CASUALTY MARKET OUTLOOK SEE PAGES 18-19
BANNJ & METRO NETWORK AT SAX SEE PAGE 12
President’s Message June 2023
Metropolitan Builders & Contractors Association of NJ 39 East Hanover Avenue • Suite B4 Morris Plains, NJ 07950 Phone: 973-887-2888 Fax: 973-887-2926 Website: www.MetroBCA.org
To keep with the tradition of my previous messages - I am going to gush about Metro’s involvement in yet another mind-boggling event! My mind is still spinning from attending the NAHB Spring Leadership Meeting in DC. My goal was to have 10 attendees from Metro and we absolutely nailed it! Words cannot describe the pride I feel about being a part of a local that seized the day (or the week to be exact) like we did. The extent to which our presence there elevated Metro, NJBA, New Jersey, and us individually is yet to be seen but the immediate feeling is that we are MORE VISIBLE and HEARD. Isn’t that the whole idea behind this? My hope is that we will go in next year with our game faces on with an even bigger presence and impact. It would be a shame to not build upon the foundations we are building there. If I have any legacy from my term as your President, I would like it to be that we have a working procedure in place to maximize this annual event. We have a workbook for all our big events so why not this (I smell a new committee being formed……). We also are fresh off AOE. What a night!! Congratulations to all the winners and a huge THANK YOU to the Committee and especially Franz and Kristie . Just in case you were wondering the entries were up 25% this year and the attendees were up 38%. A round of applause to you and your efforts. This gets better and better every year, and I cannot wait to see what the future holds. We have plenty to do before our next big fundraiser which is the golf outing. Speaking of which, remember when I pulled my cousin out of high school so our foursome could win? Well, he just graduated college and can make it this year, so I do believe Bill and I have another big win coming to us in October! Drop the mic…….
OnSite / June 2023 Editor: Rose Ann Haberman Layout: Gregory J. Del Deo
Mission Statement: Metro is a professional organization that shall serve to protect and advance the rights and interests of builders, remodelers and associates in all matters affecting the building and remodeling industries. Metro shall support the business interests of all its member firms, support safe and affordable shelter, and foster the American dream of home ownership. Vision Statement: Metro is the leading trade association for the construction industry. Metro inspires active membership through professional development and advocacy. We embrace free markets to promote cost effective housing in NJ.
Platinum Hammer Sponsor
Gold Hammer Sponsors
Silver Hammer Sponsors
Andrea LoMonaco 2023 Metro President
3
Gold Hammer Sponsor
Gold Hammer Sponsor
4
Welcome New Members! Building our future…one member at a time.
MICHELE’S EO PERSPECTIVE
June is such an exciting month for us at Metro. The Awards of Excellence (AOE), which will be held on Wednesday, June 14th at the Hanover Manor is finally here! This year will mark Metro’s 39th year hosting the Awards of Excellence. I would like to give a big shout out to Kristie Veri
ASSOCIATE Kevin Mullins Yankenfera Cleaning Services, LLC
of Cleanscape Construction and Franz Laki or SESI Consulting Engineers, the co-chairs of this year’s event and their committee, who have been working around the clock to make this the perfect evening. Over the last few months, we have dedicated many hours into workforce development. Within 10 years, 40% of our generation will be retiring out of the industry, which means we have large gaps to fill for the future. The time is now, to not only educate our youth, but help them grow a passion for all facets of the industry. As part of this initiative, Metro, alongside many of our members has attended Career Fairs at Voorhees, North Hunterdon, Union Catholic, Morris County VoTech, and Morris Hills Regional High Schools. We have also been approved for a $2500 grant from the National Housing Endowment for the 2nd year in a row because of our workforce development initiatives. In May we had a well-attended General Membership Meeting at the Boonton Station, hosted by our Sales & Marketing Council Chair, Todd Smith of Royce Joseph Capital. We heard from Metro’s Past President and our own Morris County Commissioner, Steve Shaw who gave us an update on building permits and activity in Morris County. Several Morris County and State Legislators joined us as well, including Commission Tayfun Selen, Senator Joe Pennacchio, Assemblywoman Aura Dunn, and Sheriff James Gannon. This month several members of our board will be attending the NAHB Legislative Conference on Capitol Hill in Washington DC the week of June 6th. They will be meeting with the offices of Rep. Josh Gottheimer, Rep. Robert Menendez, Rep. Bill Pascrell, and Senator Bob Menendez. They will be sharing the key issues affecting NJ home builders today. Did you know? That roughly 4.5 million Americans work in the residential construction industry and millions more are engaged in businesses directly relating to home building. Michele Leppard, EO
Kevin@yankenfera.com www.yankenfera.com
FB: www.facebook.com/Yankenfera/ IG: www.instagram.com/yankenfera/ 349 State Route 31 Flemington, NJ 08822 Spike Sponsor: Andrea LoMonaco
mleppard@metrobca.org Office: (973) 887-2888 x 1 Cell (201) 463-5543
5
GENERAL MEMBERSHIP HAPPY HOUR @ BOONTON STATION MAY 18, 2023
6
Silver Hammer Sponsor
NAHB PROFESSIONAL WOMEN IN BUILDING MEMBERSHIP According to recent studies, company earnings of PWB members are 22% higher than those who are not members. PWB members agree that they are more successful business professionals because of the support they receive from peer members. Access to professional development resources, forums that hone leadership skills, and national recognition within the largest network of residential construction industry professionals also give them a competitive edge. JOIN NAHB PROFESSIONAL WOMEN IN BUILDING To join PWB, start locally at Metro BCA. Sign up today! By becoming a member at your local PWB, you also become a member of the national PWB Council.
Silver Hammer Sponsor
COST: $75 PER YEAR
Contact: Michele Leppard, Metro Executive Officer (973) 887-2888 Ext. 1 mleppard@metrobca.org
7
limitations act as lines in the sand so claims filed after the expiration of a statute of limitations may be deemed time barred. Similarly, litigants in New Jersey should also be mindful of the time for filing an appeal from a final decision (within 45 days of the entry of a final judgment) and the time for seeking reconsider of a lower court’s order (not later than 20 days after being served with the order). * * * * * * * * * * * ** * * * * * * * * * * * * * * * * Each issue’s Saiber Construction Law Column will discuss a recent decision by New Jersey courts or, like here, courts from other states which may be of interest to people in the construction industry. The information in each article is not intended to be legal advice and may not be used as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to ensure this information is up-to-date. The article is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel. For any question relating to this article, please contact Robert B. Nussbaum, Esq. at Saiber LLC at rnussbaum@saiber.com.
THE SAIBER CONSTRUCTION LAW COLUMN
By Robert B. Nussbaum, Esq. rnussbaum@saiber.com
LI profile here
A statute of limitations is a law that sets the maximum amount of time that parties to a dispute have to file a formal legal proceeding to resolve the dispute. In New Jersey, the statute of limitations for bringing a professional negligence action which does not involve personal injuries is six years. Under most circumstances, a court will dismiss an action filed after the expiration of the statute of limitations. These principles were illustrated in two related construction actions recently decided by the Supreme Court of Idaho. In Brunobuilt, Inc. v. Briggs Eng’g, Inc. and Brunobuilt, Inc. v. Erstad Architects, PA , the Idaho Court upheld the dismissal of professional negligence claims filed against an engineering firm and architectural firm, respectively. In Idaho, claims of professional negligence are subject to a two-year statute of limitations. The two cases stemmed from a landslide on property being developed by plaintiff, a custom home builder. The landslide occurred in March/April 2016 and the builder filed suit against various parties on December 16, 2016, but, significantly, did not sue the engineering or architectural firm at that time. More than two years after the landslide occurred, in September 2018, the builder filed suit against the engineering and architectural firms. Both parties moved for summary judgment to dismiss the builder’s claims for various reasons, including that the actions were barred by the two-year statute of limitations. The trial courts found that the builder was aware of its actual damage from the landslide as early as April 2016 but did not assert its claims for professional negligence until September 2018. The court held that because “BrunoBuilt failed to bring suit . . . within two years of being made aware of earth movement damage to its real property, the claim is time-barred.” The Idaho Supreme Court affirmed the trial court’s decisions in both case, that the statute of limitations had fully accrued and barred the builder’s claims. Plaintiffs in New Jersey should be mindful of the six- year statute of limitations for commencing actions “for trespass to real property” or “for any tortious injury to real or personal property.” In most instances, statutes of
Silver Hammer Sponsor
8
2023 METRO CALENDAR OF EVENTS
Tuesday, July 11, 2023 New Member Orientation (ZOOM) 10:00 AM
Wednesday, October 18, 2023 SMC Breakfast 8:30 am – Florham Park Diner
Thursday, November 16, 2023 General Membership Meeting – Election of Officers Location: TBD
Thursday, July 13, 2023 Renos – Multi Association Mixer 5:30 PM - Location TBD
Tuesday, October 24, 2023 PWB Happy Hour 4:00 PM – California Closets
Tuesday, November 28, 2023 PWB Holiday Happy Hour 4:00 PM – Metro Office
Tuesday, August 8, 2023 New Member Orientation (ZOOM) 10:00 AM
Tuesday, November 14, 2023 New Member Orientation (ZOOM) 10:00 AM
Friday, December 8, 2023 Installation Dinner & Holiday Party 6:00 PM The Hanover Manor
Tuesday, September 12, 2023 New Member Orientation (ZOOM) 10:00 AM
Wednesday, November 15, 2023 SMC Breakfast 8:30 am – Location TBD
Tuesday, December 12, 2023 New Member Orientation (ZOOM) 10:00 AM
Thursday, September 14, 2023 BOD / Grillin & Chillin - GMM 4:00 PM The Inn at Raritan Valley
Wednesday, Sept. 20, 2023 SMC Breakfast 8:30 am – Location TBD
Wednesday, October 4, 2023 7th Annual Golf Outing Royce Brook Gold Course
Tuesday, October 10, 2023 New Member Orientation (ZOOM) 10:00 AM
9
Life and Luxury, Connected
10
Enhance the everyday with the brilliance of a Dacor kitchen. From the seamless integration of technology in a wine column to the handcrafted details of our knurled range knob, every sensation, every interaction, every touch is an inspiration.
Learn more
Dacor. Life and Luxury, Connected
dacor.com
11
NEW GIRL SCOUT PATCH PROGRAM INTRODUCES YOUNG GIRLS TO CAREERS IN CONSTRUCTION! By Linda Garvey, Metro’s PWB Council Chair; Coppola Brothers LLC
Program. This is similar to the Boy Scouts of America, where Boys Scouts earn “Merit Badges”. Both organizations’ patch programs have a predefined set of criteria that must be met to earn each specific patch. Earning a patch creates a sense of accomplishment, team and pride.
In 2023, Girl Scouts introduced a new patch. “The House She Built” patch comes from the book by Mollie Elkman’s book of the same name and the National Association of Home Builders (NAHB). This self-paced patch program has something for every level. Exploring careers in construction is a great way to develop skills and discover new ones. Together, Girl Scouts and The House that She Built want to empower girls to think about STEM (Science, Technology, Engineering, Math) and construction careers. They will meet with professional women in the building industry. The patch program helps girls build self-esteem and develop skills through curiosity and hands-on activities. Metro’s Professional Women in Building (PWB) Council is excited to be
LI profile here
Times are changing for the Girl Scouts of America. Since its inception, the
Girls Scouts have been blazing trails and redefining what’s possible for girls everywhere. Juliette Gordon Low—also known widely by her nickname, “Daisy”—started Girl Scouts in 1912 in her hometown of Savannah, Georgia.
The first troop had 18 girls who all shared a sense of curiosity and a belief that they could do anything. At that time, they were considered trailblazers. Consider that in 1912 women were not yet afforded the Constitutional right to vote. From those humble beginnings,
FUN FACT: The Girl Scouts of America has been selling commercially baked “Girl Scout Cookies” since the 1930’s. These cookies are made by only two licensed bakers: ABC Smart Cookies and Little Brownie Bakers. They continue to sell them today!
joining in this initiative. We will be piloting and working with a local Girl Scout Troop as they meet the requirements of attaining “The House She Built” patch. Metro’s PWB own trailblazing members have so much knowledge and
there are now a total of 3.2 million Girl Scouts across the nation including the mostly volunteer 890,000 adults members. The Girl Scout mission is to
encouragement to share with the upcoming generation of trailblazers. Every “The House She Built” patch earned with the assistance of Metro’s PWB members is just a small example of how we can all pay it forward for a brighter future. Let us all remember and live out The Girl Scout Promise: On my honor, I will try: To serve God and my country, To help people at all times, And to live by the Girl Scout Law. We can’t wait to get our effort started!
build girls’ courage, confidence and character so that Girls Scouts can workt to make the world a better place. As part of the program, girls are encouraged to earn “Girl Scout Patches” through the Patch
12
PWB HAPPY HOUR!
HELP SHAPE METRO’S FUTURE: SERVE ON ITS BOARD OF DIRECTORS OFFICIAL CALL FOR CANDIDATES
Each year around this time, the Nominating Committee of the Metropolitan Builders and Contractors Association of New Jersey assembles its list of candidates for the officers and Board of Directors for the coming year. If you are interested in serving as an officer or on the 2024 board, please contact Executive Officer Michele Leppard by email: mleppard@metrobca.org or call (973) 887-2888 x 1. Service on the board and on Metro’s Committees offers opportunities to determine the future of Metro, opportunities to meet and work with other members and to become known throughout the organization. Ask those who have gotten the most of their Metro memberships how they did it, and they’ll tell you they served on boards and committees. They also developed a real passion for the organization, its mission and its future.
This message is the official notification that the Nominating Committee is beginning the interviews for the nomination process. Your participation will serve you, as well as the association. Don’t wait, call now.
13
Gold Hammer Sponsor
14
SERVANT’S HEART MINISTRY VISIT MAY 4, 2023 https://servantsheartnj.org/ IG: servantsheartnj
15
BANNJ METRO EVENT @ SAX JUNE 1, 2023
16
NEW SINGLE-FAMILY HOME SIZE TRENDING LOWER By Robert Dietz, May 22, 2023 LI profile here An expected impact of the virus crisis is a need for more residential space, as people use homes for more purposes including work. Home size correspondingly increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower. According to first quarter 2023 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area registered at 2,261 square feet. Average (mean) square footage for new single-family homes stood at 2,469 square feet. Since Great Recession lows (and on a one-year moving average basis), the average size of a new single-
family home is now 4% higher at 2,486 square feet, while the median size is 7% higher at 2,262 square feet. Home size rose from 2009 to 2015 as entry-level new construction lost market share. Home size declined between 2016 and 2020 as more starter homes were developed. After a brief increase during the post- covid building boom, home size is trending lower and will likely do so as housing affordability remains constrained.
MAY SALES & MARKETING COUNCIL
17
2023 PROPERTY AND CASUALTY MARKET OUTLOOK
Submission by Rich Boisch, CRISP Advisors LI profile here
CONSTRUCTION Competition is returning to the marketplace. Insurers are willing to compete for accounts that meet their underwriting appetites.
FACTORS INFLUENCING THE MARKET Contractors will need to show resilience and creativity in managing uncertainty. Construction projects are increasingly complex, and the expected time frames to complete them are shortening. Building materials costs, inflation, skilled labor shortages, a weak supply chain, and the difficulty of forecasting budgets and timing are risks for insurers. Clients with strong risk mitigation strategies will secure the best terms from insurers. Not all clients will experience improving conditions. While pricing and availability will likely improve for the sector, contractors with challenging risk profiles due to poor losses, high-hazard operations or weak risk control programs will continue to face unfavorable market conditions. Training and job site safety will be top priorities. As contractors struggle with a shortage of skilled workers, insurers will look closely at the policies and procedures contractors have in place to help reduce the risk of injury and project delays. Increasing use of technology can reduce risk. Technologies such as smart hard hats that monitor worker condition and drones that can perform dangerous tasks remotely will improve worker safety. Building Information Modeling
(BIM) can help diminish risk and boost transparency by allowing all stakeholders to see how project parts will fit together, from building materials to HVAC systems to landscaping. BIM can reduce costly revisions and delays by detecting problems and solutions digitally before projects begin. Cyber risk is a factor. Contractors rely on multiple digital systems, software and communications devices spread across numerous job sites and offices. Many people have access, from employees working remotely to vendors and subcontractors. This increases vulnerability to cyberattacks. Firms often rely on consumer-grade antivirus protection and lack the IT security needed to protect their data. Water intrusion claims are a growing area of concern. Water damage is a leading cause of losses on construction sites. Water intrusion can lead to project delays, mold, construction defects and damaged- materials claims. Builder’s Risk coverage may not always be adequate. Between the high cost of building materials, general inflation and project delays, the cost to rebuild may be considerably higher than when the original guaranteed maximum price (GMP) was established.
18
19
Silver Hammer Sponsor
NAHB REMODELERS COUNCIL MEMBERSHIP NAHB Remodelers is America’s home for professional remodelers, representing the nearly 50,000 members of NAHB who are involved in the remodeling industry. NAHB Remodelers members enjoy a wide variety of benefits and resources, including exclusive professional development, industry- specific education, networking opportunities, and awards and recognition programs that help you strengthen and protect your business. Members also get access to the information they need to stay on top of the latest legislative and regulatory issues. JOIN NAHB REMODELERS COUNCIL To join Remodelers, start locally at Metro. Sign up today! By becoming a member at your local Remodelers Council, you also become a member of the national Remodelers Council. COST: $75 PER YEAR
Silver Hammer Sponsor
Contact: Michele Leppard, Metro Executive Officer (973) 887-2888 Ext. 1 mleppard@metrobca.org
20
Gold Hammer Sponsor
21
Silver Hammer Sponsor
22
23
NAHB DEBUTS NEW INDEX FOR MULTIFAMILY ACTIVITY By Eric Lynch, May 18, 2023 LI profile here
Silver Hammer Sponsor
The National Association of Home Builders (NAHB) redesigned its Multifamily Market Survey (MMS) in the first quarter of 2023 to make it easier to interpret and more similar to the NAHB/Wells Fargo Housing Market Index (HMI) for single-family housing. The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 50 for the first quarter while the Multifamily Occupancy Index (MOI) reading was 82. While occupancy is in positive territory and production is neutral, multifamily builders and developers are still experiencing many headwinds which include increased difficulty with obtaining loans from tightening financial conditions due to the continued interest rate hikes from the Fed and the cost of materials. NAHB forecasts that multifamily starts will decline by more than 10% per year in 2023 and 2024 given the aforementioned headwinds. The new MPI is a weighted average of four key market segments: three in the built-for-rent market (garden/low- rise, mid/high-rise and subsidized) and the built-for-sale (or condominium) market. The survey asks multifamily builders to rate the current conditions as “good,” “fair, or “poor” for multifamily starts in markets where they are active. The index and all its components are scaled so that a number above 50 indicates that more respondents report conditions are good than report conditions are poor. For the first quarter, the component measuring garden/low-rise units had a reading of 57, the component measuring mid/high-rise units had a reading of 41, the component measuring subsidized units had a reading of 51 and the component measuring built-for-sale units had a reading of 42 (Figure 1). The new MOI is a weighted average of three built-for- rent market segments (garden/low-rise, mid/high-rise and subsidized). The survey asks multifamily builders to rate the current conditions for occupancy of existing rental apartments in markets where they are active as “good,” “fair” or “poor.” Similar in nature to MPI, the index and all its components are scaled so that a number above 50 indicates more respondents report that occupancy is good than report it is poor. For the first quarter, the component measuring garden/low-rise units had a reading of 84, the component measuring mid/high- rise units had a reading of 74 and the component measuring subsidized units had a reading of 87 (Figure 2). Because the previous version of the MMS series can no longer be used to compare with this quarter’s results, the redesigned tool asked builders and developers to compare market conditions in their areas to three months earlier, using a “better,” “about the same” or “worse” scale. Sixty-seven percent of respondents said the market is “about the same” as it was three months earlier while 28 percent indicated “worse” and 5 percent “better” (Figure 3). For additional information on the MMS, visit nahb.org/mms
Silver Hammer Sponsor
24
Silver Hammer Sponsor
Silver Hammer Sponsor
25
Silver Hammer Sponsor
26
Platinum Hammer Sponsor
Gold Hammer Sponsor
27
28
AWARDS OF EXCELLENCE ON THE SOCIALS MORE PICTURES COMING IN THE JULY/AUGUST ONSITE
Silver Hammer Sponsor
30
31
Platinum Hammer Sponsor
Gold Hammer Sponsors
Silver Hammer Sponsors
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32Made with FlippingBook interactive PDF creator