Sophisticated project owners and developers pick premier contractors who are principled, are socially responsible and develop their workforce. They know that contractors who build lasting, high quality employee relationships and career paths for their craftspeople consistently deliver the best value and results. Their practices produce tax revenue and stability to communities while also lowering social service burdens.

Knowledgeable owners and developers avoid using contractors who are are unprincipled and who use misclassified or undocumented workers who are often paid in cash and lack the skills, long-term commitment and support necessary for producing top quality work. They know these second-rate practices not only lead to poor results and hidden costs but also have social consequences in their communities including uncollected taxes, increased social services costs and lower incomes.

What do socially responsible contractors get in return for being responsible?

Do "socially indifferent" or "socially irresponsible" owners, developers and contractors in your community face consequences to their reputation and business?

It is a game almost older than dirt, a “table stakes” game. Every contractor or sub has been tempted to play the game at one time or another to win a project. It is commonly known as “the grey bag,” or “this is the way it is played here,” or “I know that you are not the lowest, but…” or “if you will hire this consultant on the project, I will guarantee that you will get it,” or “if you will hire my cousin’s company as a sub on this project or that one, then I will help you get the project.”

The legal profession knows it as “bribery” and even though it continues on projects around the country, the downside risk if you play is considerable.

Two recent examples caught our eye. The first was reported in the Houston Chronicle. It involves a former Houston Independent School Board member and Chairman who, along with his co-defendants, were convicted of “tortious interference in a business relationship, bribery, conspiracy and a violation of the RICO statutes." The game involved collusion among the trustee, a contractor and a “consultant” to block the plaintiff’s attempts to get work from the school district. The game was that in order to get work, the bidder had to hire the consultant and pay fees.    Read more » about Games Contractors, Subs and Owners Play: Bribery

A recent post by Joe Paduda, principal of Health Strategies Associates, in his blog, Managed Care Matters, titled “Construction Labor Fraud is Screwing Everyone” was the second in his series on labor fraud and the damage it is doing to the insurance industry. In this issue, he interviewed Matt Capece, representative of the General President at the United Brotherhood of Carpenters and Joiners of America, about how bad the worker’s comp problem has become in some key states like Florida, Georgia, Colorado, Oklahoma and Tennessee.

Capece said, “When we go onto jobsites in Florida, on 8-9 out of 10 sites we hear from carpenters that they are getting paid in cash.” He indicated that subs and labor brokers in Florida are paying in cash with no overtime or any other benefits like vacation, worker’s comp or training. Usually they are also misclassified as independent contractors as well.    Read more » about Games GCs and Subs (Labor Brokers and Insurance Agents) Play: Worker’s Comp

The following article is a guest piece by Jose Garza, Executive Director of Workers Defense Project:

Today, the middle class is out of reach for too many men and women working in the Texas construction industry.

That hasn’t always been the case.

After serving in the Pacific during World War II, my grandfather, Saul, returned to Texas in 1945 hopeful and optimistic about the future. He got his start working for a general contractor in San Antonio where he picked up the skills that would  lay the foundation for the life that he and his family hoped to build.

Eventually, through his hard work and good fortune, he was hired by the Texas Highway Department. There, he earned good wages and had access to benefits that allowed him to raise eight children and put several of them through college.    Read more » about Garza: Building a Better Texas, Together

During a nationally televised report on Fox News Channel, a prominent Texas construction executive said President-elect Donald Trump has a chance to be both tough and smart on border security and immigration.

Stan Marek, President and CEO of the Marek Family of Companies, said the President-elect needs to enact immigration reform that identifies and taxes those who are illegally in the country. But that does not meant Trump would be somehow softening his position on border security, Marek said.

Instead, Marek insists that the best border security happens at the job site.

That increased security would be accomplished by issuing tamper-proof ID’s only to workers who are authorized to be in the United States.   Read more » about Texas Construction CEO on Fox News Channel: Trump Can be Both Smart and Tough on Immigration

A 98-page report produced by Stockton University’s William J. Hughes Center for Public Policy last June presents a detailed look into the “underground construction industry” in New Jersey.  Titled The Underground Construction Economy in New Jersey, the report lists specific ways that “off-the-books labor,” also called worker misclassification, damages the construction industry, cheats the misclassified workers, and costs the state government and ultimately local taxpayers millions of dollars each year.  Best practices for dealing with the illegal practice are identified in the report, and the report concludes with 15 policy recommendations for the State.  From page 12 of the report:

“Based on the review of best practices in other states, we outline 15 policy recommendations for the State of New Jersey (page 90). Recommendations #1 through #4 are related to the structure and functions of state government entities that have duties related to employee misclassification.   Read more » about Research Report: The Underground Construction Economy in New Jersey

Hi there. The Chamberlin Man here.

This Thanksgiving, take a moment to breathe in the smell of turkey roasting in the oven and count your blessings. Now, imagine me, The Chamberlin Man, tipping my hat and raising a glass in gratitude to you, our clients and colleagues, for trusting Chamberlin with the blessing of your business for yet another year. From all of us at Chamberlin, I’d like to offer a very sincere Thank You.

We feel like it’s a great time of year to take stock of all the good in our lives at home and at work. One of the things we’re most grateful for at Chamberlin is the opportunity to give back to the communities where we live and work. In fact, Chamberlin employees collectively volunteered nearly 400 hours for a good share of nonprofit organizations in 2016. since 2007, Chamberlin is excited that WorkFaith's job readiness program is celebrating its 200th graduating classChamberlin also raised funds for Seven Loaves Community, which will result in over 200,000 meals served to those in need.   Read more » about Good Gravy!

This is another in a series of games we see on construction projects. Have any of you seen this one?

Most of us have heard that term applied to plumbing systems or negative feedback on our projects. Being at the end of the line usually means that you catch everything that falls apart above you in the job. This is especially relevant for this game on construction projects and schedules.

This game usually begins when the architects have incomplete construction drawings or the contractor can’t build something that the architects have detailed, and it has to be redrawn. It can also be caused when the owner’s rep, engineers, or GC doesn’t approve shop drawings for an order, delivery and install on time.   Read more » about Games Contractors and Subs Play – “It All Flows Downhill”

As the debate about illegal immigration rages at the national level thanks to the vitriolic rhetoric of Republican presidential nominee Donald Trump, it's high time for all of us to take a look at how the broken system is negatively affecting people right here in our own community.

My entire career has been spent in construction, so I've been perfectly positioned to see how this mess has evolved over the past few decades. Rather than rehash arguments I've made previously - arguments I will continue to make in the future - I'd like to share with you the story of a young woman whose experience is all too common here in Southeast Texas.    Read more » about What Immigration Reality Looks Like for Workers

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