Special thanks to our 2008-09 Chapter Sponsors!
ASA of Arizona Salutes Our
2009 COPPER CLUB SUPPORTERS
ASA of Arizona is dedicated to protecting the rights of each and every specialty contractor and supplier in the state. During the legislative season, ASA makes it a priority to communicate with Arizona lawmakers about the important issues your business faces every day and fight for changes that equalize and improve the business environment for the construction community. The Copper Club was established to recognize association members and members of industry who donate funds to support the association's advocacy efforts. We would like to thank the following members for their 2009 Copper Club donations:
Diamond Level Member ($1000+)
Arizona Thermal Insulation Association
Hill & Usher Insurance and Surety
Emerald Level Member ($500 - $999)
Star Roofing, Inc.
Ironco Enterprises, LLC
Magnum Companies
Masco Builder Cabinet Group
Markham Contracting Co., Inc.
Ruby Level Member ($250 - $499)
Partitions & Accessories Company
Star Plastering, Inc.
Prado & Sons Pool Plastering, Inc.
Banker Insulation, Inc.
Sapphire Level Member (up to $249)
AME Electrical Contracting, Inc.
Cobra Stucco, LLC
During the legislative session, ASA of Arizona joins with other members of industry as a partner in the Arizona State Contractors Coalition (ASCC) to track and act on proposed legislation that will impact the construction industry. Our association and coalition are currently engaged in legislation impacting contractor payment/retention and risk transfer/indemnity/additional insured. Fighting for change in the law is an expensive endeavor and only well-funded organizations ever have impact on legislation. ASA needs your financial support to develop the resources necessary to continue our efforts and affect change. We ask that you support this effort by renewing your membership in or becoming a new member of ASA of Arizona's Copper Club for 2009. For information contact Executive Director Carol Floco at (602) 274-8979.
ASA Working For You
Construction Subcontractors Elect Darlene East To Lead National Association
Members of the American Subcontractors Association elected Darlene East, president of Holes Incorporated, Houston, Texas, as the association’s 2009-10 president, ASA announced at its Business Forum and Convention 2009 on March 6, 2009.
“ASA represents the hopes of subcontractors all over the country,” said East. “For more than 40 years, subcontractors have turned to ASA: as an advocate, when laws and regulations don’t establish a level playing field for subcontractors; as a forum to communicate our needs to other members of the construction team, including better contracts and business practices; as an educator for the knowledge that we need to improve our companies; and as a resource for building our business networks, and, yes, our friendships throughout the industry.”
When East begins her one-year term as ASA president on July 1, 2009, she will serve as the principal spokesperson of the association and connect with other construction industry leaders to identify and pursue common goals that promote the interests of subcontractors and the construction industry. She will also preside at meetings of ASA’s board of directors, Executive Committee and the membership of the association.
ASA members elected three other national officers to one-year terms beginning July 1, 2009: 2009-10 ASA Vice President Timmy McLaughlin, Austin Construction Company, Summerville, S.C.; 2009-10 ASA Treasurer Kerrick Whisenant, Cornerstone Detention Products Inc., Tanner, Ala.; and 2009-10 ASA Secretary Walter Bazan Jr., Bazan Painting Company, St. Louis, Mo.
ASA members elected five individuals to three-year terms on ASA’s board of directors beginning July 1, 2009: Susan Baxter, Corbins Service Electric LLC, Phoenix, Ariz.; Kevin Conboy, Southwest Lath & Plaster, Albuquerque, N.M.; E. Scott Holbrook Jr., Crawford & Bangs, Covina, Calif.; Greg Kanning, Dumas Hardware, San Antonio, Texas; and Linda Lucas, Hess Sweitzer Inc., New Berlin, Wis., Their terms begin July 1 as well.
Founded in 1966, ASA amplifies the voice of, and leads, trade contractors to improve the business environment for the construction industry and to serve as a steward for the community. ASA’s vision is to be the united voice dedicated to improving the business environment in the construction industry. The ideals and beliefs of ASA are ethical and equitable business practices, quality construction, a safe and healthy work environment, and integrity and membership diversity.
ASA Urges Appeals Court To Reject Illegal Manipulation of Maryland Subcontractors’ Contracts and Prices
On Feb. 17, 2009, the American Subcontractors Association and its Maryland chapters, ASA of Baltimore and the D.C. Metropolitan Subcontractors Association, jointly asked a Maryland Court of Appeals to enforce “good faith and fair dealing” in construction contracting by keeping prime contractors from opportunistically terminating subcontractors in pursuit of better business deals.
“A construction contract is a group of written promises each party must honor to the best of its ability,” said 2008-09 ASA President Bill Olmo, Fedco Construction Inc., Santa Rosa, Calif. “Termination-for-convenience clauses, like other contract promises, must be used in good faith and fair dealing — not merely when a prime contractor, after signing the contract, finds a better deal for itself. A prime contractor’s signature should, among other things, legally assure a subcontractor that a bona fide agreement exists.”
In their amicus curiae, or “friend of the court” brief, ASA, ASAB and DCMSA asked the Maryland Court of Appeals to preserve that assurance to subcontractors by denying the appeal of prime contractor Questar Builders in Questar Builders Inc. v. CB Flooring Inc. Their brief said: “At its core, Questar’s appeal seeks to have this court announce what would be a new exception to the implied convenant of good faith and fair dealing. The exception would give Questar and similarly situated contractors a shield of unconstrained discretion even for reasons amounting to bad faith to use a ‘termination for convenience’ clause to undermine the legitimate contract expectancies of subcontractors, suppliers and others doing business in Maryland. This is wholly inappropriate.”
In the underlying case, prime contractor Questar Builders and subcontractor CB Flooring signed a $1.1 million subcontract agreement for carpet and flooring work at a luxury midrise and townhome apartment development in Owings Mills, Md. Months after the subcontract was signed, but before the CB Flooring started work on-site, the project’s interior designer distributed drawings reflecting carpet that was different and more expensive than the original contract. When CB Flooring signaled to Questar that it planned to submit a change order to meet the new specifications at a higher price, Questar proceeded to negotiate a contract for $1,000 less than CB Flooring’s price for the work with another subcontractor that had submitted a bid on the original contract. Questar terminated CB Flooring “for convenience,” and used the other subcontractor for the project.
The Columbus, Ohio-based law firm of Kegler, Brown, Hill and Ritter prepared ASA’s brief, which asked the court to reject Questar’s appeal and affirm the “good faith and fair dealing” on which the business of construction contracting relies: "A holding carving … an exception to the reach of the good faith and fair dealing covenant would not only poison business relationships and eliminate business certainty, but also do great damage to the ability of subcontractors to rely on their signed contracts as a reliable indicator of future work and expected revenues."
Indeed, the brief noted, subcontractors dedicate resources, such as time reviewing plans and specs, and make other business decisions, based on the meaningful signing of contracts before their on-site work begins. ASA, ASAB and DCMSA asked the court to follow normal industry practice and allow CB Flooring to recover the profits it anticipated on the project, but lost because of the termination for convenience.
ASA tapped its Subcontractors Legal Defense Fund to pay the fees associated with its filing in this case. The SLDF supports ASA’s critical legal activities to protect the interests of all subcontractors, and is funded solely by contributions. SLDF funds are invested in precedent-setting cases across the country. To learn more about this case and the SLDF, visit www.sldf.net.
HELPFUL STEPS TO COMPLY WITH REQUIREMENTS OF E-VERIFY PROGRAM By Julie A. Pace
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