The Business E nvironment

1. The Business Environment Going To The Next Level

2. Regional Operations Mission: Create New Markets, Protect Existing Markets, Improve the Business Environment.

3. We Don’t Watch Things Happen We Make Things Happen!

4. Path Towards Success • Our Plate is Full – We Must Motivate Members to Get Involved. • Key is Chapter Development promoting Committee Activity – THE key to Chapter Development is promoting member involvement. • Many problems faced by our members fall under the business environment category. • Create a Crisis!

5. Number One Business Issue? • Frivolous Litigation. • Difficult to get members to share information that they are being sued. • Companies have gone out of business because of frivolous litigation – the Panama City Florida freeze issue.

6. Success Stories Meeting the Needs of Our Membership

7. Anything is Possible • Statute of Repose – a timeline that curbs latent defect litigation – some states have 5 years after C of O as the ending date of liability. • Warranty Timelines. • Workers’ Compensation Reform. • Prompt Pay • Construction defects control. • Limiting liability for mold.

8. Anything is Possible • OCIPs limits – closing gaps and providing tails. • Retainage reforms. • Pay if Paid prohibitions. • Litigation controls – horizontal immunity. • Limits on transferring responsibilities. • Prohibit waiver of Mechanic’s Lien rights.

9. Industry Specific Legislative Issues • What do the members want? • Liability Avoidance. • ITM Indemnification. • Engineer Responsibility Issues. • Contractor Licensing. • Residential Sprinkler Laws. • Scope of Practice Clarity. • Reduced Fees.

10. Liability Avoidance • Linked to Scope of Practice laws. • Construction Defect Laws. • Freye vs. Daubert Doctrine • Certificate of Merit. • Liability Limits. • OCIP Restrictions. • WC Vertical and Horizontal Indemnification.

11. Owner’s Liability • The Owner of a property is responsible to provide a safe environment for occupants notwithstanding codes or mandates or lack there of imposed by the AHJ. • MGM Grand litigation first, or at least the first big claim, to hold owner liable for not providing a safe environment even though the hotel met Clark County requirements. • The National Model Codes and Standards have been used as the basis for a “reasonable level of fire safety.”

12. ITM Liability • Huge insurance concern – large source of insurance claims. • NICET level licensure. • Proper training and education. • Liability limits by contract. • Statute of Repose

13. Role of Engineer • Engineer does Design Concepts; contractor prepares layout documents. • Contractor may be responsible for both in Design/Build projects. • If engineer specifies pipe and sprinkler location, they are responsible for correctness – no risk transfer. • Engineer plans review contractual option with owner.

14. Contractor Licensing • We support contractor licensing. • We want indemnification, tort avoidance, risk transfer prohibitions and other business environment language added to licensing laws. • We have sample contractor licensing law.

15. Residential Market Promotion The IRC Initiative

16. Scope of Practice • Other Trades want our work. • Scope must focus on liability avoidance. • Scope consistent with nationally accepted Standards of Practice. • Different classifications of contracting. • Statewide application – local business license prohibitions.

17. Reduce Fees • Government impact and permit fees. • Eliminate duplicative fees. • Manage use of fees. • Water Utility Fees. • Duplicative Taxes – Fab Tax. • Government project tax relief.

18. Two Substantive Focuses • Industry specific legislation dealing with market development, market protection, and industry specific business environment threats. • Construction Coalition to collectively address common business environment issues impacting all those in the construction trades like tort reform and workers’ compensation.

19. 1. Legislative Action using Lobbyist – Lobbyist paid by Chapter or Supplier. 2. Create a Coalition of Construction Trades The Two Avenues

20. First Avenue Industry Lobbyist Prioritize List – A Must Priorities Come From Your Regional Membership

21. Tells Us What You Want • Get members to identify AND prioritize issues. • Need assistance in highlighting potential resolutions – contact the RO Team. • Set up a Committee to push the issue. • Develop a plan of action.

22. Paid Lobbyist • NFSA has very limited resources. • Most lobbyists are paid through Chapter fund-raising – golf outings, member contributions. • If you lobby make sure you follow lobby registration requirements. • If you lobby or manage a lobbyist follow Buddy’s Lobbying 101.

23. Consider Construction Coalition • If the business environment issues are also experienced by other construction trades, a coalition effort is the best path towards success.

24. Second Avenue The Construction Coalition We are little fish in the big sea – we need to form coalitions

25. Florida Construction Coalition • Political “Power” comes from the number of votes and $$$$. • Created in 2001 • Currently 59 associations and a total of 78 lobbyists. • Buddy was co-founder and 2003-2005 Chairman. • 2003 WC success.

26. Establishing a Coalition • All contracting trades have insurance woes. • All contracting trades have Workers’ Compensation issues. • Working together to solve common problems is sellable – must have an understanding that there may be issues between the trades that will conflict – issues all agree are approved by the coalition.

27. Florida’s Construction Coalition • Holds weekly, sometimes daily, meetings during Legislative session. • Key Legislators speak at meetings. • Annual retreat attended by Speaker of House and Senate President and other key Legislators. • 2nd most powerful Tallahassee Lobby.

28. Florida’s Construction CoalitionMost Active Members Alarm Association of Florida American Fire Sprinkler Association American Specialty Contractors of Florida American Subcontractors Association of Florida Asphalt Contractors Association of Florida Associated Builders and Contractors Fenestration Manufacturers Association Florida Air Conditioning Contractors Association Florida Association of Electrical Contractors

29. Florida’s Construction CoalitionMost Active Members Florida Associated General Contractors Council Florida Association of Plumbing, Heating & Cooling Contractors Florida Building Material Association Florida Concrete & Products Association Florida Fire Equipment Dealers Association Florida Fire Sprinkler Association, NFSA Chapter Florida Home Builders Association Florida Pool & Spa Association/ NSPI Region VII

30. Florida’s Construction CoalitionMost Active Members Florida Onsite Wastewater Association Florida Refrigeration & Air Conditioning Contractors Association Florida Rental Association Florida Roof Deck Association Florida Roofing, Sheet Metal & Air Conditioning Contractors Assn. Florida Solar Energy Industries Association Florida Surety Association

31. Florida’s Construction CoalitionMost Active Members Florida Transportation Builders' Association Florida Wall and Ceiling Contractors Association Florida Water Quality Association Independent Electrical Contractors of Florida Southeast Glass Association Underground Utility Contractors of Florida

32. The Coalition Premise • Not all lobbyists have easy access to all Legislators. • Working as a coalition team, the coalition has easy access to all committee members. • 72 lobbyists representing the construction trades sat in the committee hearings to cap WC attorney’s fees in 2003.

33. Let’s Make it Happen • Business environment issue are impacting our members. • Let’s get them to identify issue then we can establish a action plan to get resolve. • Need me as a Chapter speaker give me notice.

34. Buddy’s Lobbying 101

35. When passing laws, it is not what is right or wrong, it is what is doable. Realization by Buddy Dewar Clyde’s Bar, after bad day of lobbying, 1982

36. Politics • Poli.. • From the word poly meaning many. • ..tics • Blood sucking creatures.

37. Always Be Professional Watch For the Kramer Factor

38. Influence • Influencing legislators is a function of “power.” • Most Legislators respect power. • Power is built or taken, not a given. • Building power comes from effective development of the advocacy. • Think of the number of votes your advocacy represents as your power base.

39. Preplanning CriticalFor Success • Over 70% of the work needed to pass legislation is taken prior to meeting with a bill sponsor. • Showing your hand before all agree on the specific language can be very costly. • Opposition exploits your confusion – exploit your opposition’s confusion.

40. Before walking the Legislative hallways….. Assess your assets. • What are your strengths? • What are your weaknesses? • SWOT-C • How stable is your support? • What is the geographic distribution of your support.

41. High-Rise Retrofit Hot Zones Destin Volusia Pinellas Palm Beach Broward Naples Miami Beach

42. Before walking the Legislative hallways….. • Assess your assets continued. • What is your status within the organization? • Does the leadership of the organization solidly support the issue? • How effective are your leaders? • How effective are your communications efforts – e-mail, Twitter.

43. Before walking the Legislative hallways….. • What are your resources? • Do you have sufficient financial resources to take up the fight? • Who are your allies? What is an assessment of their “power?” • What are your staff resources? • What “insider information” do you possess?

44. Before walking the Legislative hallways….. • The Political Climate. • What is the mood of the session? • What are the pressing issues being addressed by the Legislature? • Crime, taxes, schools, welfare, etc. • Scope of your issue – does it impact a large constituency?

45. Establish profiling. Seek voting record. Family history. Hobbies and Interests. Organizations. Political Career. Religious Interests. Media interviews. Friends. Personal Objective Before walking the Legislative hallways….. Know your legislators.

46. Before walking the Legislative hallways….. • Know the Legislative Institutional Elements. • Executive Branch Influence. • Leadership of the Body. • Partisanship. • Legislative Procedures. • Committee structure. • Hearings procedures. • Floor procedures.

47. Before walking the Legislative hallways….. • Know Thy Enemy. • Understand the root of their opposition. • How “sellable” is their stand? • Evaluate their “power.” • Look for weaknesses. • Identify their allies. • Evaluate their past legislative successes. • Identify their legislative fears.

48. Before walking the Legislative hallways….. • Draft Legislation. • Ensure your needs are addressed. • Ask for more than you want but don’t ask for the moon. • Identify issues you are willing to give up and those issues you must win. • Share draft within for a review to ensure completeness.

49. Before walking the Legislative hallways….. • Outline Legislative process. • All committees of reference. • Identify members of the committee. • Map member locations. • Identify key staffers. • Evaluate capabilities.

50. Knowing the Legislature • Identify management philosophy of Legislative leadership. • If all bills addressed and passed must be approved by top leadership, seek someone who has access to the Speaker and/or President. • If leadership strongly opposes your bill, go home.