Subcontractor News - December 20, 2023

A look back at December events

On December 7, STA's second Change Order Roundtable was held at the Department of Design and Consturction. DDC officials went over the change order process at their agency, reviewed the General Contractor's Contract Article 23 - Changes in Work, discussed common errors, and ended with a Q&A.

On December 14, Grassi presented the seminar "Your Financial Statement: Identifying Red Flags" - this program helped attendees better understand financial statements to ensure that red flags are considered and interpreted properly. Thank you to Grassi for their time preparing and presenting this to our members.

Coming up at STA

On January 10, join us for a toast to business growth and network with construction executives, procurement managers and estimators at the region’s top general contractors and construction managers. Meet with Skanska, Citnalta, Halmar, Consigli, Turner, Tutor Perini, EW Howell, Shawmut, AECOM Tishman, and Holt to learn about procurement opportunities and build relationships. Attendees can schedule 10-minute meetings with these general contractors so make sure to register right away. This member-only event is sure to sell out.

Prior to our networking portion of the event, attendees will gain valuable insights and forecasts from industry leaders for 2024 and beyond. Our expert panel, moderated by STA Executive Director Felice Farber, will feature Andrew Rein, President of the Citizens Budget Commission, Carlo A. Scissura, Esq., President & CEO of the New York Building Congress, and Carl Oliveri, Construction Practice Leader and partner at Grassi. We will explore the trends, challenges and opportunities that will define the construction landscape in the coming years.

Don't miss this highly anticipated event which will take place from 8:00 am—11:00 am at Club 101,101 Park Avenue. Click here for more information.

Industry Regulatory Updates

New I-9 Form Required as of November 1, 2023.

The U.S. Citizenship and Immigration Services published a revised version of Form I-9, Employment Eligibility Verification (PDF, 477.5 KB) on August 1. Employers were allowed to use the old form through October 31, 2023. Effective November 1, 2023 all employers must use the new Form I-9.

Reminder: Annual Sexual Harassment Training Required

New York State law requires that employers conduct anti-harassment training for all employees each year. New York City law requires employers who had 15 or more employees at any given point in the previous calendar year must provide a sexual harassment training to their staff.

Minimum Wage Increases in NYS

Effective Jan. 1, 2024, the minimum hourly wage will increase from $15.00 to $16.00 in New York City and Nassau, Suffolk, and Westchester counties, and from $14.20 to $15.00 per hour for the rest of the state. The minimum wage increase also impacts the minimum weekly base salary of those classified as exempt executive, administrative and professional employees. In New York City, Nassau, Suffolk, and Westchester counties, the minimum base weekly salary will increase to $1,200.00 on January 1, 2024.

As we step into the winter season, it's the perfect time for the association to come together and make a positive impact in our community. STA Young Professionals Committee is excited to announce our association-wide inaugural yearly volunteer & donation program: STA Gives Back.

Charities often see an influx of donations and volunteers during the holiday season, which is why STA is committing to the first few months of the new year, a time when many community groups see a downturn in giving. STA has chosen three different charities to support from January to March, with different levels of involvement. We urge all of our members to participate or give.

Click here for the full STA Gives Back program

Architect as Initial Decision Maker in AIA Contracts

The AIA form of owner-contractor contract utilizes an initial decision maker for disputes between the owner and contractor which may include scope of work disputes, delays and termination of the contract itself. There are several pros and cons to having the architect be the initial decision maker which all parties to the contract should consider before agreeing to have the architect act as the initial decision maker.

December Legislative Report

Bill Limiting Retainage on Private Projects to Five Percent Signed Into Law

STA is pleased to report that on November 17, Governor Hochul signed the "Private Retainage" bill (S.3539), into law as Chapter 657 of the Laws of 2023.This new law targets the permissible amount of retainage that may be held on private commercial projects, capping it at a maximum of five (5%) percent. It also calls for the prompt release of retainage on private work upon reaching “substantial completion” (as the term is defined in the contract). From the time of the law’s enactment going forward project owners, managers and general contractors may no longer retain more than 5% of the contract price until job completion if both parties consent to this under the contract. The unjustifiable practice of holding substantial amounts of subcontractor money in non-interest bearing accounts controlled by project owners on private construction jobs is therefore finally addressed in this new law.