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Contractor to Pay $20M in Largest Prevailing Wage Criminal Case
A Pennsylvania road contractor has been sentenced in the largest prevailing wage criminal case in U.S. history and will pay more than $20 million in restitution to workers who lost retirement funds to the scheme, according to Pennsylvania Attorney General Josh Shapiro.
Glenn O. Hawbaker Inc., which won $1.7 billion in state road and bridge contracts between 2003 and 2018, pleaded nolo contendere, in which it accepted sentencing without pleading guilty, to four felony counts of “theft by failure to make required disposition of funds received.”
The company has been sentenced to five years of probation, and it must pay $20,696,453 in restitution to 1,267 workers. The company funneled wages that were supposed to be paid into the workers’ retirement plans into the overall company’s retirement accounts, including those for owners and executives, according to Shapiro.
Those wages were earmarked under the state’s Prevailing Wage Act and the federal Davis-Bacon Act to go to the workers on state- or federal-funded projects in which set wages were required. The wages can be used for retirement and health benefits for those workers, but only for them.
Hawbaker was also charged with using workers’ health and welfare benefits to subsidize the cost of a self-funded health insurance plan that covers all its employees. “The company disguised its scheme by artificially inflating its costs by millions of dollars each year and claiming credit for prohibited costs,” Shapiro said.
The company would overstate workers’ medical costs, claiming it had paid an entire hospital bill, for instance, when insurance had paid for most of it, according to Shapiro. He said such maneuvers allowed the company to outbid other contractors on projects by reducing its costs.
Hawbaker is based in State College and is a family-owned company formed in 1952. Between 2003 and 2018, it won $1.7 billion worth of Pennsylvania Department of Transportation road and bridge project contracts.
Charges were filed in April by Shapiro. The company was temporarily suspended from bidding on or participating in future PennDOT projects as of April 19. However, on June 30, the suspension was lifted after a state court ruled the suspension was unconstitutional, according to the Centre Daily Times newspaper.
Shapiro said the scheme “was a sophisticated operation that spanned many years.” The charges, however, only date back to 2015 due to the statute of limitations, he said.
Harry Ward, a bridge worker at Hawbaker for 30 years, discovered a problem with his retirement plan in 2018. The funds he had expected to receive from Hawbaker didn’t match his account. He checked with PennDOT and confirmed he was short thousands of dollars.
Hawbaker cooperated with the investigation, Shapiro has said. When the charges were announced the company released a statement saying it believed it acted in accordance with all state and federal laws.
The company told investigators it relied on bad advice from former counsel, and it has changed its methods since the investigation began, according to an affidavit, and money is now being directed properly.
The company’s plea deal covers the years of 2015 through 2018. Along with restitution and probation, Hawbaker will pay a court-appointed monitor to oversee the company’s prevailing wage practices during its probation. The monitor will also oversee the restitution payments to employees. Hawbaker must also pay the Attorney General’s Office $240,563 for third-party expert fees.
Hawbaker released the following statement in response to the sentencing:
“Hawbaker is pleased to bring this process to a conclusion and focus on the future. Our company’s decision to plead no contest avoids protracted litigation, which could have jeopardized the livelihoods of our dedicated employees. We continue to believe that we followed all requirements regarding fringe benefits. The fringe benefit practices challenged by the Office of Attorney General were based upon advice provided by the company’s former attorneys. Hawbaker has always intended to properly pay all of its employees. Through the years, both state and federal regulators extensively reviewed our Prevailing Wage Act and Davis Bacon Act practices on jobs and did not find any wrongdoing. This led us to believe we were properly following all laws, and we did not plead guilty. We fully cooperated in this process and proactively addressed concerns raised by the attorney general’s office. As stated by the attorney general, we are making past and present employees whole. This process will be conducted under the direction of an independent monitor. We now look forward to continuing to deliver outstanding service to our customers and providing opportunities for our dedicated team members.”
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HammerHead Trenchless Lining System Speeds Up Pipe Repairs
Everywhere you go in the United States aging, underground sewer lines are deteriorating, leaking and in serious need of repair. HammerHead Trenchless has a solution to get the job done fast.
The company’s redesigned Bluelight LED cured-in-place pipe (CIPP) lining system is geared for rapid rehabilitation of laterals and small sewer pipes from 3 to 10 inches in diameter.
The redesign includes features such as an intuitive touchscreen interface, interchangeable reels in 131- and 164-foot lengths, three light head sizes, including a new 3-inch light head, and a lightweight ergonomic frame for easier maneuverability and portability.
The company’s Bluelight technology uses a specially formulated single-part resin that cures under light in the “blue” wavelength, giving installers significantly longer working time between liner wet-out and curing. Once installed, the automated curing system pulls the LED light head through the liner, curing the resin as fast as 5.4 feet per minute.
Both the original Bluelight system and the redesigned model are capable of navigating and repairing 45- and 90-degree bends and some transitions. The Bluelight system resin is free of styrenes and VOCs, and the system meets or exceeds ASTM F1216.
“Our new design incorporates feedback from installers around the world to make it even more user-friendly and efficient to maximize productivity on every lining job,” says Josh Hood, senior product manager at HammerHead.
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Infrastructure Bill Passes Senate With Big Boost for Roads, Bridges
A $1 trillion infrastructure bill passed the U.S. Senate today and heads to the House after months of bipartisan negotiations.
The Infrastructure Investment & Jobs Act, which passed in a 69-30 vote, includes $550 billion in new funding over five years as well as reauthorizes increased transportation funding through 2026.
The American Road and Transportation Builders Association reports that nearly half of the $1 trillion will be spent on federal highway, bridge and public transportation improvements. It calls for a $370 billion, five-year reauthorization of the surface transportation programs, as well as another $86 billion in supplemental investment, ARTBA says.
The highway and bridge funding reauthorization of $300.5 billion through fiscal year 2026 would represent a 24% increase next fiscal year over current funding, according to the association.
Total investment for highway programs for FY 2022–FY 2026 would be $347.8 billion under the Infrastructure Investment & Jobs Act, according to ARTBA. The chart above shows the year-by-year funding levels proposed in the package compared to the last two years of core highway and appropriations spending — an $18.6 billion (38%) increase.American Road and Transportation Builders AssociationThe House now will be tasked with considering the legislation. House Speaker Nancy Pelosi has said the bill’s House consideration is contingent upon a $3.5 trillion spending package of other Democratic priorities passing the Senate. That bill is being introduced as a budget resolution through a reconciliation process that would require only a simple majority to pass, instead of the minimum 60 votes typically needed to pass Senate legislation.
Construction groups happy
The construction industry praised today’s passage of the infrastructure bill.
ARTBA President and CEO Dave Bauer lauded the bipartisan aspect of the legislation and its potential economic effects:
“The U.S. economy and transportation system users stand to benefit most from enactment of an infrastructure bill that combines historic investment levels with pragmatic policy reforms.”
The president of the Associated General Contractors of America called on the House to act swiftly on the bill and not hold it up over the $3.5 trillion spending plan.
“Unfortunately, some members of the House want to delay action on the bipartisan measure until passing an unrelated, partisan, spending bill,” said AGC CEO Stephen Sandherr. “The last thing Washington should do is hold a much-needed, bipartisan infrastructure bill hostage to partisan politics.”
He, too, praised the bill’s economic effects:
“The new infrastructure measure passed by the Senate today provides much-needed new federal investments in a wide range of infrastructure projects. These investments will help generate new demand for construction services, equipment and materials. More important, the new investments will create high-paying construction career opportunities and help make our economy more efficient and competitive.”
Michael Bellaman, president and CEO of the Associated Builders and Contractors, noted that the construction industry has been waiting decades for increased infrastructure funding. “This bipartisan accomplishment is something that has eluded Congress for decades and is proof of the possibilities when lawmakers choose compromise over conflict,” he said.
He also was pleased the bill would not increase corporate taxes, which was first proposed by President Joe Biden to pay for the additional funding.
Instead, the bill relies on using unspent Covid-relief and unemployment insurance funds, tougher enforcement by the Internal Revenue Service, 5G auction proceeds, sales of the strategic petroleum reserve and other means.
The Congressional Budget Office has estimated it would increase the federal deficit by $256 billion over 10 years, though supporters of the legislation have disputed that figure.
The breakdown
Other infrastructure winners in the bill include electric vehicles, airports, rail, broadband and energy.
Here are highlights of the proposed additional spending:
Roads, bridges, major projects – $110 billionPower infrastructure – $73 billionPassenger and freight rail – $66 billionBroadband infrastructure – $65 billionDrinking water infrastructure – $55 billionPublic transit – $39 billionAirports – $25 billionPorts and waterways – $17 billionTransportation safety – $11 billionElectric vehicle infrastructure – $7.5 billionElectric buses and transit – $7.5 billionReconnecting communities split by highway projects – $1 billion
Industry News Roundup: Kirby-Smith Machinery Gains New CEO
John Arapidis has assumed the helm of Komatsu dealer Kirby-Smith Machinery, replacing Ed Kirby, who is retiring after nearly 40 years. Kirby will serve as chairman of the board.
Arapidis is now the president and CEO of the Oklahoma City-based dealership after serving as vice president of major accounts at the firm since 2017. Prior to joining Kirby-Smith, he spent nearly 30 years at Komatsu America in a variety of roles, including national accounts manager and vice president of its rental and used equipment division.
“Making the decision to step back from my role was not an easy one, but I know that with the appointment of John to President and CEO, Kirby-Smith Machinery will continue to remain a leader in the industry in John’s extremely capable hands,” Kirby says. “During the past four years, John’s experience, leadership style and vision for the company have proven to be the right fit for this role, and will benefit the entire KSM organization, as well as our partners and clients.”
In his new role as board chairman, Kirby will work in an advisory board and continue to liaise with customers and partners.
Established in 1983, Kirby-Smith has 12 branch locations in Oklahoma, Texas, Kansas and Missouri.
Vermeer Southeast adds Fecon
Vermeer Southeast added Fecon’s forestry mulcher line, stocking Fecon forestry mulching tractors and attachments along with its Vermeer forestry equipment.
Vermeer has 11 locations throughout Alabama, Florida and Georgia, with affiliated companies in Caribbean.
Yanmar Power distributor expands territory
Yanmar Power Solutions distributor Crosspoint Power & Refrigeration has expanded its coverage territory to Missouri, Kansas and Nebraska. It already serves Yanmar in Illinois, Indiana, West Virginia, Kentucky and Tennessee.
MANUFACTURERS, SUPPLIERS
Minnich receives GOMACO 2020 Supplier of the Year award
Minnich
Concrete dowel pin manufacturer Minnich Manufacturing is the first recipient of GOMACO’s new Supplier of the Year award. The two companies have partnered for several years, with Minnich products used on several GOMACO concrete machines, such as its HV-2PE hydraulic internal vibrator.
Terex names regional sales manager
MitchellTerex MPSTerex MPS has added JP Mitchell as a regional sales manager for its line of Cedarapids, Simplicity and Canica crushing and screening equipment. He will work with Terex MPS dealers to grow and manage business while looking for business expansion opportunities.
Mitchell previously held various positions at Aggregate Manufacturing International.
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Friedrich Assumes Helm of Liebherr USA
A new managing director will take the helm of Liebherr USA.
Liebherr has appointed Kai Friedrich managing director of Liebherr USA, based in Newport News, Virginia, a position previously held by Peter Mayr. Friedrich will also assume the position of divisional director of construction equipment.
As managing director Friedrich will guide and oversee the corporate and strategic plans for nine product segments in the Liebherr USA organization. These include construction equipment, mobile and crawler cranes, tower cranes, components, concrete technology, refrigeration and freezing, mining, deep foundation machines and maritime cranes.
As division director for construction equipment he will be responsible for managing the team of Liebherr sales, service, training and product management staff for the company’s construction equipment range, providing support to Liebherr’s U.S. dealers and affiliates.
Friedrich has 18 years of experience in the heavy equipment industry, with 17 of those years serving in a variety of roles within Liebherr Group.
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AEM’s Slater to Retire, Tanel to Take Helm of Equipment Association
ConExpo’s sponsoring association, the Association of Equipment Manufacturers, will see a leadership change in the new year.
After 23 years at the helm, Dennis Slater is retiring as AEM president, effective Dec. 31. Megan Tanel, currently the group’s senior vice president, construction and utility sector, will succeed him.
Slater, 63, joined AEM’s predecessor the Construction Industry Manufacturers Association in 1982, becoming president in 1998. When AEM formed after the merger between CIMA and the Equipment Manufacturers Institute, Slater continued his president role. Since then, AEM has grown by 50% to more than 1,000 member companies, and revenue has increased nearly 700% to $60 million annually.
“Through Dennis’ leadership and impressive contributions to the industry for nearly 40 years, AEM has built tremendous value and momentum for our members and the industry,” says Steve Berglund, 2021 AEM chair and Trimble executive chairman. “He has been an outstanding leader of the equipment manufacturing industry.”
Tanel, 48, joined AEM in 1995. For many years she lead AEM’s exhibitions and events initiatives and helped launch the World of Asphalt in 2001. In addition, she’s served as show director for The Utility Expo (formerly ICUEE) and North America’s largest construction equipment trade show, ConExpo-Con/Agg. Tanel led a team that grew AEM’s trade show revenue by 80% in 12 years.
“Megan has successfully led key initiatives and been a major driver in building relationships across our industry throughout her 20+ year tenure at AEM,” Slater says. “With the support of the AEM senior team and our membership, I’m confident she will provide the leadership needed to continue AEM’s success in the future.”
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JLG’s Seat Belt System Makes This Safety Essential Hard to Ignore
As any safety manager will tell you, it’s the little things — the routine, the ordinary, the things you expect to get done that don’t get done — that cause most of the accidents. Like fastening seat belts.
JLG has developed an optional seat belt system that makes it easy to remember to use them and hard to ignore. What the company calls its “seatbelt engagement and operator presence option” is being offered on JLG 742, 943, 1043, 1055 and 1255 telehandler models.
The system includes seatbelt engagement assurance and operator presence functionality, as well as a high visibility orange seatbelt. To make sure your operators are paying attention, the system uses visual and audible alarms. It will also limit machine functions when the operator is not buckled up to enhance safety during telehandler operation.
“Key in/seat belt buckled” is a common safety protocol. Anytime an operator is sitting in a JLG machine with this option, the seatbelt engagement assurance produces a visible and audible alarm that activates whenever an operator is seated but unbuckled.
For example, when the operator is seated with the vehicle ignition key on, alarms will be activated immediately and continuously. The alarms will cease when the operator leaves the seat or turns the vehicle ignition off. The alarms are intended to alert and remind the operator and will not prevent engine startup or hydraulic and drive functions, similar to seat belt alarms in automobiles.
Operator presence functionality prohibits engine start and hydraulic functions if an operator is not present. Additionally, if the system detects a loss of seat pressure during operation, one of the following will occur:
Parking brake engaged and transmission in neutral. Hydraulic controls are disabled. Upon returning to a seated position, the hydraulic controls are enabled. >Parking brake disengaged and transmission in neutral. Hydraulic controls are disabled and the cabin alarm sounds continuously. Upon returning to a seated position, hydraulic controls are enabled, and the cabin alarm will cease. >Parking brake disengaged and transmission is in forward or reverse. Hydraulic controls are disabled, the cabin alarm sounds continuously, and the transmission shifts to neutral. Upon returning to a seated position, hydraulic controls are enabled, and the cabin alarm will cease. The transmission will need to be returned to neutral to allow the system to reset prior to re-engaging forward or reverse travel.>
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Ritchie Snags Yoder & Frey Parent in $1 Billion Deal
Ritchie Bros. will buy Euro Auctions, parent of Yoder & Frey, in a $1.08 billion deal Ritchie says will give it a larger footprint in Europe and the Middle East.
Ritchie says it will acquire 100% of Euro Auctions equity. In addition, it will retain key management employees, including Derek Keys, Euro Auction founder and director. The deal is expected to be final in the first quarter of 2022.
“This acquisition significantly accelerates our strategy to drive revenue and earnings growth and add shareholder value by continuing to expand our capabilities in new channels, sectors, regions and customer segments,” says Ann Fandozzi, Ritchie CEO.
Founded in 1998, Euro Auctions purchased U.S.-based Yoder & Frey in 2016, the same year Ritchie purchased IronPlanet. Euro Auctions says it conducted 60 unreserved heavy equipment auctions in 2020 through its live and online sales, selling close to 90,000 items.
Yoder & FreyFor 47 years, Yoder & Frey has held a February auction in Kissimmee, Florida, which it held live this past February, bucking the online-only trend after the pandemic hit.
Along with its U.S. presence, the company has nine locations in Germany, Spain, Northern Ireland, the United Kingdom, the United Arab Emirates and Australia.
“Dave Ritchie and his brothers were a big inspiration for my brothers and I in the creation of Euro Auctions,” Euro Auctions’ Keys says. “We modeled much of what we do off Dave’s customer-centric philosophy, which still runs through Ritchie Bros. today. Bringing us together will drive value for customers, as we provide more equipment, solutions and services to the many industries and regions in which we operate.”
Last year, Ritchie also acquired equipment data provider Rouse Services, which traces its lineage back to Max Rouse & Sons, an auction and liquidation firm.
“Between our two great companies there is 88 years of experience, an amazing customer-focused team, state-of-the-art auction sites, innovative online platforms, along with a suite of different solutions and services,” Fandozzi, says.
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Music to Your Ears: Bosch Intros Two Jobsite Radios
Bosch Power Tools has debuted two new jobsite radios, the larger of which is a charging station and power source as well.
Both jobsite radios have several ways to connect and listen to music, including Bluetooth 5.0 for music from streaming services or songs from your mobile device. And with their USB charging capability, you can also charge your mobile devices with them.
The larger unit, the GPB18V-5C, provides four 120-volt outlets to run lights, tools and electronics. Four speakers blast out sound in all directions. Separate bass and treble controls and five equalizer presets enable you to fine tune the sound, keeping your rock music thumpy and your talk/sports broadcasts intelligible.
The radio/charger runs on Bosch’s 18V lithium-ion batteries or an included 120V AC power cord. A large digital media bay provides secure storage for mobile devices, and a rubberized roll-cage design protects the GPB18V-5C from knocks and rough handling.
Incoming calls can be handled with Bluetooth connectivity and the phone function on the Bosch GPB18V-2C jobsite radio.BoschThe compact version, the GPB18V-2C, features handles and a hanging hook, along with a dust- and moisture-resistant design. It also has a speakerphone so you can conduct hands-free calls with the Bluetooth function.
It runs on Bosch’s 18V Lithium-ion batteries or it can be plugged into the included AC/DC adapter. A hanging hook makes placement of the GPB18V-2C easy to set up on a jobsite where a flat or stable surface may not be available.
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Ram announces 2022 Laramie G/T and Rebel G/T
Ram is expanding its light-duty lineup with the additions of the new 2022 Ram 1500 Laramie G/T and Ram 1500 Rebel G/T models.
The models feature unique technology and performance straight from the factory.
“Ram has a strong history of performance trucks, and the Laramie G/T and Rebel G/T models add to that while expanding the light-duty lineup with the segment’s best combination of performance, capability, luxury and technology,” said Mike Koval Jr., Ram Brand Chief Executive Officer at Stellantis. “Ram 1500 G/T buyers will enjoy this combination of performance and luxury that the newest additions to our versatile lineup offer.”
Ram 1500 G/T models feature a sport performance hood and G/T decals to distinguish them from the rest of the Rebel and Laramie offerings. A factory installed cold-end exhaust and cold-air intake, available through Mopar, are also standard.
2022 Ram 1500 Rebel G/TRamPerformance pages are included on the 2022 Ram 1500 G/T as standard equipment and give drivers the tools necessary to become familiar with their vehicle’s performance. The app provides access to real-time vehicle performance information, including timers (such as 0-60 mph elapsed time), g-force, gauges and engine performance. This data can be downloaded to a USB stick, allowing for easy sharing of driving performance.
The Ram 1500 G/T models feature a number of firsts for non-TRX models including paddle shifters, a console-mounted performance shifter and a metal pedal kit. A G/T-specific interior utilizes bucket seats that feature the G/T logo with high bolsters and all-weather floor mats from Mopar.
The 2022 Ram 1500 Laramie G/T and Rebel G/T are available in a Crew Cab configuration with the 5.7-liter V-8 with eTorque mild-hybrid assist.
The Ram 1500 Laramie G/T has a starting MSRP of $55,480, and the 2022 Ram 1500 Rebel G/T starts at $55,375. Destination fee is $1,695.
The 2022 Ram 1500 Laramie G/T and Rebel G/T go on sale in the third quarter of 2021.
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