PCCA Journal 3rd Quarter 2025

The Official Publication of the Power & Communication Contractors Association Roth Confirmed to Lead the NTIA Managing Tariff Risk in Construction Contracts How the Big Beautiful Bill Impacts Construction Employers on Employment Law Issues PCCA and DPAC Call on Congress to Enact Digging Safety Laws 3rd Quarter 2025 BEAD Program Revamp and Budget Bill Ignite Optimism for PCCA Members

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PCCA Journal|3rd Quarter 2025 5 3rd Quarter 2025 Official Publication of the Power & Communication Contractors Association Publication Staff PO Box 638 Churchton, Maryland 20733 (800) 542-PCCA • www.pccaweb.org ©2025 Power & Communication Contractors Association Publisher Timothy Wagner Editor Michael Ancell Associate Editor Caroline Ferguson Advertising Sales Stacy Bowdring Photography Jorge de Casanova Information Technology Greg Smela Accounting James Wagner Layout & Design Joseph Wagner Officer Directors Board of Directors Nick Anderson Anderson Underground, Inc. Bonnie Burnham Service Electric Company Ed Campbell Quanta Services, Inc. Andy Christine Sellenriek Construction, Inc. Josh DeBruine Michels Corporation Tucker Dotson (Advisory) Ditch Witch John Fluharty (Advisory) Troy Construction Tom Fredericks American Polywater Corporation Matthew Gabrielse Gabe’s Construction Co., Inc Robin Gilbertson J&R Underground, LLC Jake Jeffords Vermeer Corporation Tate Johnson MYR Group Tommy Muse, Jr. Aubrey Silvey Enterprises, Inc. Nate Newsome GPRS, LLC. Sam Stephens Tjader & Highstrom Jason Tyler Brooks Construction Co., LLC Billy Vincent ElectriCom, Inc. Michael Whitebread J.J. Kane Auctioneers Chris Wozniak Intercon Construction, Inc. Chairman Rob Pribyl MP Nexlevel, LLC Chairman-Elect Craig Amerine Amerine Utilities Construction, Inc 1st Vice Chairman Heath Sellenriek Sellenriek Construction 2nd Vice Chairman Chase Lapcinski Push, Inc. Treasurer John Audi Mears Group, Inc. Secretary Garrett Akin Brooks Construction Co., LLC BEAD Program Revamp and Budget Bill Ignite Optimism for PCCA Members 7 By Ben Brubeck Washington is not known for meeting deadlines on complex issues, but passing President Trump’s budget reconciliation bill by the self-imposed July 4 deadline surprised skeptics, critics, and supporters. Likewise, progress on the long-delayed federal funding plan for the nation’s broadband buildout via the NTIA’s Broadband Equity Access and Deployment (BEAD) program, has stoked PCCA member and industry optimism. Stuck in the Middle 14 By Andy Patron, HELPS Leadership expert Andy Patron says that every company he works with has the same challenge: their leaders are overextended, and their managers are a bit unprepared for the role they play. He looks at the common problems in this regard and offers several solutions. By acknowledging the problems and investing in these solutions, organizations can enhance their resiliency, become more scalable, increase operational effectiveness, and increase profitability. Human Resources | By Greg Guidry 12 Managing Tariff Risk in Construction Contracts 16 Safety Watch 20 Power News 23 Broadband News 29 News Briefs 37 PCCA Member News 45 Advertiser Index 48 New PCCA Members 54 Industry Calendar 54

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PCCA Journal|3rd Quarter 2025 7 A major overhaul of the $42.5 billion BEAD program and passage of the budget reconciliation bill is expected to benefit the power and broadband construction community.Washington is not known for meeting deadlines on complex issues, but passing President Trump’s budget reconciliation bill by the selfimposed July 4 deadline surprised skeptics, critics, and supporters. Likewise, progress on the long-delayed federal funding plan for the nation’s broadband buildout via the U.S. Commerce Department’s National Telecommunications and Information Administration’s (NTIA) Broadband Equity Access and Deployment (BEAD) program, has stoked PCCA member and industry optimism. Bake the BEAD 2.0 Cake Since late 2024, a major effort by PCCA leadership, members, and staff has pushed the Trump administration and Congress to maintain and advance broadband infrastructure funding that has been frozen in NTIA’s infamous BEAD program. Unlocking the BEAD program’s $42.45 billion in federal funding from 2021’s Infrastructure Investment and Jobs Act will result in at least $60 billion worth of contracts for PCCA members to chase, and it will ultimately deliver downstream benefits to manufacturing, agriculture, healthcare, education, tech, construction, and other industries that depend on the reliable fiber and broadband that constitutes the backbone of a modern U.S. economy. Commerce Secretary Howard Lutnick announced a revamp of the program in a June 6 BEAD Restructuring Policy Notice with PCCA-supported changes to streamline project permitting and eliminate burdensome labor requirements, which will get shovels in the ground more quickly and reduce costs in many markets. However, Lutnick’s BEAD 2.0 guidance also includes a move toward a “tech-neutral approach,” dropping the Biden administration’s “fiber first” strategy, which fiber advocates worry opens more opportunities for states to spend a larger share of BEAD funds on technologies like low-Earth orbit satellites and fixed wireless. In addition, much to the disappointContinued on page 8 Inside Washington Jaime Steve Government Affairs Solutions jsteve@gasolutions.net (202) 841-5493 BEAD Program Revamp and Budget Bill Ignite Optimism for PCCA Members Ben Brubeck Government Affairs Solutions bbrubeck@gasolutions.net (703) 472-7850

PCCA Journal|3rd Quarter 2025 8 Inside Washington Continued from page 7 ment of state broadband offices who had finalized their funding plans, NTIA gave states 30 days to resubmit a revised initial proposal and rebid subaward selection within the new framework within 90 days. By the end of July, all 50 states and six territories received initial approvals of their resubmitted proposals, and PCCA-supported Arielle Roth was confirmed by the U.S. Senate to run the NTIA. The agency is focused on making final decisions on state BEAD funding requests and has up to 90 days to give the green light to state plans after submission. After the BEAD 2.0 cake is fully baked later this year, PCCA expects to see states take swift action to fund broadband projects, and PCCA members should be busy in late 2025 and early 2026 working on BEAD-funded projects, absent further unanticipated delays. One Big Beautiful Bill Signed into Law Congress has escaped Washington for the August recess, and Republican lawmakers are busy persuading voters back home that its cheekily named One Big Beautiful Bill, also known as the budget reconciliation bill, will deliver wins for their pocketbooks and the American economy. After months of congressional deliberation and White House arm-twisting and intervention, the One Big Beautiful Bill Act (OBBBA, H.R. 1), which President Trump signed into law on July 4, extends key 2017 Trump tax cuts and makes additional tax, workforce development, and energy policy changes of interest to PCCA member companies, their employees, and industry stakeholders. Fair Tax Treatment Thanks to the advocacy of PCCA and a coalition of 80 leading trade associations, the OBBBA delivers tax certainty and parity for large and small contractors and related businesses that will result in additional capital investment in materials, equipment, workers, and construction projects. The law includes restoration of 100 percent bonus depreciation on capital investments, extension of the research & development tax credit, permanent status of the small business deduction, and the elimination of taxes on overtime wages for Americans like the men and women employed by PCCA members. All these improvements to the tax code will benefit the pipeline construction industry. Workforce Development The OBBBA includes PCCA priorities allowing investment in the industry’s workforce by expanding much-needed access to educational Pell grants for students enrolled in short-term accredited programs aimed at upskilling the workforce and attracting new entrance into the skilled trades. In addition, the OBBBA allows 529 savings plan owners to make tax-free withdrawals for a broader population of workforce, on-the-job training, and continuing education programs and expenses. This includes tuition, miscellaneous fees, books, exam costs, and supplies for programs listed under the Workforce Innovation and Opportunity Act. These changes should help grow enrollment and increase completion of workforce development programs. Upskilling the talent of a new generation of construction workers is vital to building America’s 21st Century power infrastructure and meeting the additional market needs resulting from full deployment of federal BEAD funding. Clean Energy Tax Credit Changes May Disrupt Power Marketplace Significant changes to clean energy tax credits in the OBBBA are likely to result in increased construction of natural gas, hydrogen, and other forms of energy production. The OBBBA effectively ends the electric vehicle and solar-heavy home clean energy tax credits and rapidly phases out wind and solar tax credits for project developers. Furthermore, the OBBBA provides certainty around tax credits for new nuclear, geothermal, and battery storage projects that will phase out after 2033 and fully end by 2036. With the White House policy and communications teams emphasizing the need for reliable energy grids—a knock against inconsistent wind and solar production—to meet new demands from growing domestic manufacturing and AI infrastructure projects championed by the Trump administration, short and long-term energy demand will produce a robust market and many opportunities for PCCA members and stakeholders. August Recess Politicking As GOP lawmakers and the White House sell the economic After the BEAD 2.0 cake is fully baked later this year, PCCA expects to see states take swift action to fund broadband projects, and PCCA members should be busy in late 2025 and early 2026 working on BEAD-funded projects, absent further unanticipated delays.

PCCA Journal|3rd Quarter 2025 9 benefits of the OBBBA to constituents over the August recess, Democratic lawmakers are home highlighting its cuts to Medicaid, Medicare, and Obamacare by more than $1 trillion over the next ten years, as well as new work requirements for Medicaid and SNAP eligibility. Some Republicans will be taking intraparty arrows from budget hawks because the OBBBA raises the debt ceiling by $5 trillion, and the Congressional Budget Office estimates that it raises the federal deficit by $3.4 trillion by 2034. And cuts to clean energy tax credits are likely to stop and delay construction of new clean energy projects, putting some Republicans in a difficult position with job creators and blue-collar voters back home. OBBBA negotiations sucked up a significant amount of time and energy from the congressional appropriations process, which has stymied Congress from passing all 12 funding bills in regular order by August recess, despite promises to the contrary made by House and Senate leadership. When Congress returns to Washington in September, they face a September 30 government shutdown unless they pass all appropriations bills, a short or longer-term continuing resolution (CR), or a combination of these options through a cromnibus or minibus spending bill. In March, Congress agreed to a CR through the end of the fiscal year, but a deal may be more difficult to hammer out this time given the political climate in Washington. The stakes for the forthcoming government funding showdown will be high as campaign season for the 2026 midterm election is around the corner. Mid-term elections traditionally have not been kind to the party occupying the White House. Expect Democrats to come back from recess energized and prepared to obstruct Trump administration nominees and any potential GOP legislative policy wins as they hammer constituents with negative messages about the OBBBA. Permitting Reform Gains Momentum The Trump administration continues to advance National Environmental Policy Act and permitting reforms through executive and regulatory actions, as Katherine Scarlett, a key nominee at the Council on Environmental Quality, awaits full Senate confirmation. To date, Congress held committee hearings touching on the cumbersome permitting process, signaling a bipartisan Continued on page 10 • Telecom and Electrical • ETL Listings to UL651A • 1/2" - 6" Sizes • Custom Options • Split Reels • ISO 9001 Facility • USA-owned Supplier Contact Us 1060 Teel Court Baraboo, WI 608-355-3080 www.teel.com Conduit Built to Protect. Designed to Last.

PCCA Journal|3rd Quarter 2025 10 interest in permit reform. The House teed up a floor vote on the PCCA-supported PERMIT Act (H.R. 3898), which would streamline permitting under the Clean Water Act, a tool often used to obstruct projects to build and improve water, energy, and other infrastructure. Unfortunately, a floor vote on this bill was postponed when Speaker Mike Johnson (R-La.) announced that Congress would be breaking for recess early in the face of mounting legislative maneuvering and pressure to fully disclose files related to the Epstein saga. Digging Safety The Common Ground Alliance’s Damage Prevention Action Center, which PCCA is a member of, continues to advocate for Congress to pass strong third-party damage prevention language contained in Section 18 of the PIPES ACT of 2023 (H.R. 6494), voted out of the House Transportation and Infrastructure Committee in 2024. DPAC’s Government Affairs Committee, co-chaired by PCCA’s Ben Brubeck and Google Fiber’s Ariane Schaffer, is leading industry collaboration on this critical federal and state safety policy, working closely with 811 centers, utilities, and contractor stakeholders in the coalition. Busy on the Labor Front On July 17, the White House nominated Scott Mayer, chief labor counsel at the Boeing Corporation, and James Murphy, a former career official with the National Labor Relations Board (NLRB), to serve as members on the NLRB, which currently has three of its five board seats vacant following President Trump’s unprecedented firing of Democrat-appointee Gwynne Wilcox. These nominees would fill two seats as the courts make a final determination about whether Wilcox’s firing was lawful. Of note, the term of the lone Republican-appointed member and now NLRB Chair Marvin Kaplan expires on August 27. As a result, even if Mayer and Murphy are confirmed, there will likely be at least two vacancies (Kaplan and Wilcox) that the Trump administration must address swiftly in order to have an effective NLRB. Unfortunately, those two nominees and President Trump’s NLRB General Counsel nominee Crystal Carey face a perilous confirmation process as some Republican Senators, led by Sen. Josh Hawley (R-Mo.), have signaled that they will join Democratic Senators in blocking these nominees from advancing out of the Senate Health, Education, Labor and Pensions committee. It is the latest effort by Hawley to curry favor with labor unions that has frustrated the business community. Earlier this year, he released a pro-labor framework and legislation dealing with labor contracts that he hopes will attract more union membership and leadership support for the Republican Party. The House Education and Workforce Committee passed PCCA-supported bills clarifying independent contractor and joint employer provisions that are often confusing and unworkable for businesses and employees alike. Of note, Bidenera NLRB and DOL regulations related to both issues remain paused after successful industry-led litigation. The regulated community anticipates further regulatory and legal action from the NLRB and Trump DOL, as it is unlikely the Senate will take up these bills. PCCA Advocates Against PLAs PCCA continues to advocate against anti-competitive and costly government-mandated project labor agreements (PLAs) on federal and federally assisted construction projects. A controversial June 12 Office of Management and Budget (OMB) memo (M-25-29) indicates that the Trump administration will continue former President Biden’s anti-competitive and inflationary policy mandating PLAs on federal construction projects valued at $35 million or more, roiling construction industry stakeholders and pro-free enterprise lawmakers. Inside Washington Continued from page 9 Fast and efficient solution for sealing small conduits, communication innerducts, and small annular spaces All NEW duct sealant polywater.com 800-328-9384 651-430-2270

PCCA Journal|3rd Quarter 2025 11 Despite the OMB’s new PLA exception language exempting projects from PLA mandates if federal agencies determine that the mandate would increase costs by 10 percent or more, it is very concerning that the Trump administration’s default posture is pro-PLA. Sens. Katie Britt (R-Ala.) and Bill Cassidy (R-La.) and Rep. Clay Higgins (R-La.) spearheaded letters to President Trump, signed by almost 120 U.S. House and Senate lawmakers in opposition to the continuation of Biden’s pro-PLA policy. PCCA members are concerned that without strong opposition to government-mandated PLAs from industry leaders, the Trump administration and other policymakers may attempt to expand a pro-PLA posture to federally assisted projects and private power and broadband construction projects. This would undermine positive steps taken by the Trump administration earlier this year to eliminate Biden executive orders and policies pushing government-mandated PLAs on federally assisted projects via federal agency government grant programs. In July, PCCA members received a grassroots alert through Muster to write to the White House in support of a new fair and open competition policy in contrast to the Trump administration’s current continuation of the harmful Biden policy. Litigation surrounding the Biden policy is likely to be resolved this year but may have been further complicated by the Trump memo. PCCA Pushes For Fair and Open Competition In Congress, PCCA continues to support the Fair and Open Competition Act (H.R. 2126/S.1064), introduced by Rep. Higgins and Sen. Todd Young (R-Ind.), that would prohibit controversial government PLA mandates and preferences on federal and federally assisted projects. PCCA must remain politically engaged through grassroots communications and sustained outreach to elected officials during August recess and into the fall. PCCA’s government affairs team expects to focus on government spending, permit reform, and advancing the BEAD program this fall. As always, PCCA’s government affairs team looks forward to representing your interests before Congress and the Trump administration and welcomes feedback on industry priorities. With over 25,000 mini courses completed to date, Dura-Line Academy has trained network owners, designers, distributors, engineers, and installers worldwide. Don’t believe us? Take 15 minutes to complete one of our mini courses below to see for yourself. 5,000 PEERS CAN’T BE WRONG. OF YOUR Conduit Fill Ratio Plumettaz: Intro to Jetting Corning: Understanding Fiber Density OR create a free account at www.duraline.com/academy Dura-Line Academy is a proud BICSI Continuing Education Credit provider.

PCCA Journal|3rd Quarter 2025 12 The new legislation will impact construction employers in several employment law areas. Discussed below are some of the major changes that should be noted. 1. No Federal Tax on Overtime and Tips Details • Individuals must earn $150,000 or less in 2025 to be eligible, and for couples, the combined income limit is $300,000 (this threshold will be adjusted for inflation in future years). • For tip deductions, employees must work in occupations where receiving tips is customary, such as servers, bartenders, hotel staff, hairstylists, etc. (The Treasury Department will publish a comprehensive list of eligible tipped occupations by October 2.) Construction occupations will likely not make the list since receiving tips is not customary in the industry. But if you happen to own a restaurant or hotel, this might apply to those investments. • Only cash tips (including those charged and those received under tip-sharing) and tips reported to employers for payroll tax purposes are eligible. • The maximum deduction for tip income is $25,000 per year. • For overtime deductions, employees must receive OT pay as defined by the Fair Labor Standards Act (FLSA) (pay for hours worked beyond 40 in a workweek at a premium rate), and the deduction applies only to the premium portion of OT pay (the amount above the regular hourly rate). • The maximum deduction for OT income is $12,500 per year (up to $25,000 if married filing jointly). • These exemptions will apply only from TY2025 to TY2028 and will need to be extended by Congress to continue. Impact on Employers • Employers will need to adjust payroll systems to accurately track and separately report these amounts on W-2 forms, increasing administrative complexity for payroll and HR departments. 2. Medicaid Eligibility While not a direct workplace regulation, the new law introduces stricter work requirements for Medicaid eligibility, requiring individuals to work or engage in qualifying activities for at least 80 hours per month. Details • Adults aged 19 to 64 in the Medicaid expansion group must complete at least 80 hours per month of work, job training, education, or approved community service to maintain eligibility (unless they fall under an exemption, such as having dependent children, qualifying medical conditions, etc.). • States must verify compliance with work requirements at application and at least every six months. Impact on Employers • This could affect employee health coverage and increase HR involvement in verifying or documenting employees’ work hours for those relying on Medicaid. • Some observers believe this requirement will lead to a growth in the number of people seeking employment, especially at low-skill and lower-paying jobs. • Others believe the cuts to Medicaid and other social programs could lead to reduced employee health coverage, especially among lower-wage workers, potentially increasing absenteeism or turnover due to loss of benefits. Human Resources Greg Guidry Ogletree Deakins Nash Smoak & Stewart greg.guidry@ogletree.com (337) 769-6583 How Will Construction Employers Be Impacted by the Big Beautiful Bill on Employment Law and Related Issues?

PCCA Journal|3rd Quarter 2025 13 3. Health Savings Account (HSA) Expansions The law introduces several targeted expansions to Health Savings Accounts (HSAs), offering employers and employees pandemic-era flexibility in how they use pre-tax health dollars. Details • The final law permanently allows telehealth coverage before deductibles for HSA-compatible plans, permits HSA funds to pay for direct primary care, and expands HSA eligibility to individuals enrolled in health plans through the Affordable Care Act’s Marketplace. • High-deductible health plans (HDHPs) with HSAs may continue to cover telehealth and other remote care services before the deductible is met, making pandemic-era relief permanent (the safe harbor otherwise would have expired at the end of 2024). • Beginning in 2026, HSA funds can be used to pay for certain direct primary care (DPC) arrangements, up to $150 per month for individuals and $300 per month for families. • Beginning in 2026, individuals enrolled in bronze and catastrophic plans through the ACA Marketplace will become eligible to contribute to HSAs. Impact on Employers • Employers can offer or promote HDHPs with robust telehealth and DPC options, making benefits packages more attractive and flexible. • The permanent telehealth provision provides stability for benefits planning and communication, ending the cycle of temporary extensions. • More employees, including those on ACA bronze and catastrophic plans, can participate in HSAs, increasing the reach of tax-advantaged health savings. • Employers interested in direct primary care can now facilitate pre-tax payment for these services, supporting employee access to affordable, relationship-based care. 4. Dependent Care Flexible Spending Account Contribution Limit Increase The dependent care FSA contribution limit will increase for the first time since 1986 (aside from COVID-era increase of $10,500 that was applicable only for 2021). Details • Starting in 2026, the dependent care FSA contribution limit will increase from $5,000 to $7,500. • This will be a welcome change for employees as childcare and elder care expenses continue to skyrocket. • Just like the current limit, the new limit is not indexed to inflation. Impact on Employers • Employers will need to amend their cafeteria plan documents (and other materials, such as summary benefit materials) to offer the higher limit. • Employers considering whether to adopt the new $7,500 limit should confirm that they can still satisfy the nondiscrimination testing requirements under Section 129 of the Internal Revenue Code. Note that many employers already experience difficulty passing these tests, which are designed to ensure that dependent care FSA benefits are not skewed in favor of higher-paid employees. 5. Boosted ICE Budget—Increased Immigration Enforcement The law provides a massive increase in funding for Immigration and Customs Enforcement (ICE) and Border Protection (CBP) operations, dramatically expanding enforcement resources and capabilities. Details • ICE’s annual budget is tripled to nearly $30 billion for enforcement and deportation operations, with a total of about $170 billion allocated over the next decade for immigration enforcement and border security. • That money will partially be used to hire 10,000 new ICE employees over the next five years, aiming to achieve the stated goal of doubling the current workforce. • As a result, we should see an increase in mass deportations, expanded detention infrastructure, and crippling new financial barriers to legal immigration processes. Impact on Employers • ICE is expected to ramp up workplace activities in the near future, including audits, I-9 inspections, and worksite raids, particularly in industries such as agriculture, construction, hospitality, retail, and manufacturing. • Familiarize yourself with your rights and responsibilities should you face an enforcement action, and take proactive steps to minimize the chances of one occurring at your workplace. • Have clear procedures in place to address potential enforcement actions. • Conduct an immigration health check of your compliance program.

PCCA Journal|3rd Quarter 2025 14 Stuck in the Middle By Andy Patron, HELPS. “Clowns to the left of me, Jokers to the right, Here I am, stuck in the middle with you...” — Gerry Rafferty and Joe Egan (Stealers Wheel, 1972) ALL of the companies I am working with have the same challenge: their leaders are over-extended, and their managers are a bit unprepared for the role they play. Here are four of the most common scenarios: • Entry level staff is hard to attract. The industry must hire attitude. So, the field is less experienced and over-confident. Keeping them engaged is difficult, because the work is difficult. • Foremen and Superintendents are promoted early, because the crews in the field need leaders. The best worker is usually promoted, so productivity suffers. • Project managers are given larger or more jobs to manage because they have the work but not the experience. These are smart, capable people. They manage risk as best they can. If a risk is a problem that has not happened yet, then they do not know what they do not know. So, ironically, a “green” project manager represents a significant risk. [“It’s not easy being green”. – Kermit the Frog”] • Finally, the “senior” and most experienced staff is ready to retire but cannot or will not. They are busy doing work and must “pick their battles.” They just do not have the time to develop their direct reports. Their reflex is to micro-manage, which limits growth and organizational development. Their engagement with their people is diminished. At every level, leaders and managers are less ready and more distracted. As a result, managers and direct reports are less prepared than they should be. So, everyone is “stuck in the middle,” feeling uncovered and unsupported. Or, perhaps, you are the clown or the joker. Let us look at the problems and consider some solutions. Problem #1: The Pressure to Promote There is an overwhelming tendency to promote employees into leadership and management roles prematurely. Companies have gaps up and down their organizational charts. Experienced leaders are retiring or shopping out, so organizations feel compelled to fill the voids quickly. The result? Talented, but unseasoned, people are thrust into roles without the necessary time to develop the skills, strategic thinking, and emotional intelligence required to lead effectively. This phenomenon has a structural root. Many organizations lack robust succession planning and leadership development programs. Instead of cultivating a pipeline of ready leaders, they rely on reactive promotions, often based on technical performance rather than leadership potential. Or they are promoting people to keep them. The consequences are insufficient decision-making, inferior project performance, increased risk exposure, and a loss of organizational capability. Problem #2: Overwhelmed at the Senior Level We also have senior leaders who have weathered decades of change, disruption, and transformation. They have “paid their dues” and have lots of experience. They are also facing burnout, yet feel unable, or are unwilling, to retire or step aside. Some of these leaders stay because they fear leaving the organization in unprepared hands (there might be a financial incentive to ensure their retirement). Others stick around because their identity is deeply tied to their role. A few feel a sense of duty to guide the company through the “next few years,” but it is taking longer than they expected. However, the lingering presence of these overwhelmed and distracted senior leaders can create bottlenecks. Decisionmaking is delayed, innovation stalls (“this is the way we have always done it”), and younger leaders do not have a Andy Patron HELPS andy@helps.biz CLOWNS JOKERS

PCCA Journal|3rd Quarter 2025 15 place to advance. The result is a leadership culture that tends to micro-manage, forces hierarchy, and is quickly becoming out of sync with the needs of our emerging workforce. Problem #3: A Shrinking, Shifting Workforce The demographics of the labor pool have shifted. The workforce is not only shrinking due to aging populations and declining birth rates, but it is also changing in composition. Younger workers entering the labor force often bring different expectations, values, and work styles. They prioritize flexibility, purpose, and continuous learning over traditional career ladders and long-term loyalty, especially challenging in the construction industry. While this new generation brings fresh energy and digital fluency, they also require more guidance and support than previous cohorts. They also want to be a part of something more socially relevant. Without experienced leaders/mentors and more structured development, they risk becoming overwhelmed, disillusioned, and disengaged. The gap between what they need and what organizations can provide is widening, creating a retention challenge and a lumpy leadership pipeline. Problem #4: The Middle Management Squeeze Caught between these two extremes is middle management; a layer that is increasingly burdened with translating strategy into action, managing up and down, and holding teams together amid uncertainty. These managers are often underresourced, under-trained, and under-appreciated. They are expected to lead change without having a seat at the table where decisions are made and they are really busy; personally, and professionally. Middle managers are the ones most affected by a leadership vacuum. They must compensate for the inexperience of their junior colleagues while navigating their inattentive senior leadership. This “squeeze” leads to elevated levels of stress, burnout, mistakes, and turnover. The “middle” has fewer people, and there are more “clowns” and “jokers” than ever. Some Solutions: What Can We Do To address this dilemma, organizations must take a proactive, strategic approach. Here are five key actions that can help: 1. Invest in Leadership Development Early and Often Leadership is not an innate trait—it is a skill that must be cultivated. Organizations need to identify high-potential employees early and provide them with structured development opportunities, including mentorship, coaching, and strategic assignments. 2. Redefine Succession Planning Succession planning should be a dynamic, ongoing process—not a one-time event. It must include clear criteria for readiness, diverse talent pools, and contingency plans for unexpected departures. It should also include some incentives to keep the best and brightest engaged. 3. Support Senior Leaders in Transition Rather than waiting for burnout or abrupt exits, organizations should create pathways for senior leaders to transition into advisory or mentoring roles. This allows them to share their wisdom while making room for new leadership. Something as simple as moving them to a three-day work week can help (with a reduced salary, of course). 4. Empower Middle Managers Middle managers need more than just responsibility—they need authority, resources, and recognition. Empowering them to make better decisions and supporting their development can strengthen the entire organization. They especially need help learning how to develop their junior staff and will require faster access to “senior” perspective. They should be given flexible work hours and “work from home” permission. Companies that support work and life balance will be more able to keep these managers healthy and engaged. 5. Adapt to the Workforce Reality Organizations that are intentional about creating a healthy culture with clear mission are more likely to be chosen by a discerning workforce. Firms that implement effective systems and processes will be able to accelerate the contribution of the newest, least experienced worker. Also, the best companies are providing ongoing development opportunities that align with the leadership goals of younger workers; embracing flexibility and creativity, fostering inclusion, and creating a learning environment. Summary and Call to Action Our leadership and management challenges are not insurmountable, but they do require some immediate attention. There are a lot of people that feel “stuck in the middle.” They need some help before they get squeezed too hard. That is not just a metaphor, as it turns out, it is a real and pressing (pardon the pun) issue that affects performance, culture, long-term engagement, and organizational health. By acknowledging the problems and investing in the above solutions, organizations can enhance their resiliency, become more scalable, increase operational effectiveness, and increase profitability. I encourage you to act, soon, or the “clowns” and “jokers” will not be any fun.

PCCA Journal|3rd Quarter 2025 16 Tariff risk remains a meaningful challenge for contractors in the construction industry, particularly those mid-tier contractors for whom exposure is significant but bargaining power is limited. Over the past year, trade policy has grown increasingly unpredictable, with tariffs being deployed less as tools for managing domestic economic conditions and more as instruments of national power.¹ For contractors working projects under fixed-price agreements, the mid-contract imposition of tariffs that suddenly and unexpectedly increase the cost of imported materials such as steel, aluminum, copper, electrical switchgear, HVAC systems, etc., can result in unrecoverable losses when the contract lacks flexibility in its pricing and schedule terms. To better understand the stakes, consider this hypothetical example: Ironclad Structures LLC is hired to build a steel-framed facility under a fixed-price contract for $100,000. Steel components account for 15 percent of the total project cost, and other materials make up another 50 percent. Ironclad does not have firm pricing with any of its suppliers. After contract execution, a new tariff causes the price of steel components to rise by 40 percent and the price of all other materials to increase by an average of 10 percent. These increases push the project’s steel component cost from $15,000 to $21,000 and the cost of other materials from $50,000 to $55,000. Ironclad prices the job with a 10 percent profit margin, or $10,000. However, after absorbing the increased material costs, its profit drops 76 percent to just $2,400. Unfortunately, the component cost increase is only part of the story. As soon as the tariffs are announced, rumors circulate that upcoming trade deals might eliminate them. In response, many importers delay shipments or store construction materials and equipment in bonded warehouses to wait out the uncertainty. This creates not only price increases, but also material availability issues, especially for small and mid-sized buyers like Ironclad, whose businesses are deprioritized by suppliers. Unable to obtain the necessary steel products on time, Ironclad falls a month behind schedule, misses the project deadline, and incurs $10,000 in liquidated damages under the contract. What begins as a profitable job turns into a net loss of $7,600, or 7.6 percent. From this example, we can identify two key ways in which unpredictable tariffs introduce risk into a construction project. First, tariffs can drive up prices not only for the targeted commodity or component, but across a broad range of material inputs. Someone in the contracting chain must absorb the impact of those increases, and without firm pricing or escalation protections, that burden often falls on the mid-tier contractor. Second, when tariffs are both significant and unpredictable, importers may delay shipments or store goods in bonded warehouses to avoid unfavorable rates. This tactic can lead to material shortages and project delays, triggering consequential damages, such as liquidated damages, ultimately borne by the contractor. Considering the risks posed by unpredictable tariffs, the question for contractors is: How do I avoid being the party who accepts all the risk? In practice, we are seeing sophisticated upstream parties answer this question by using targeted contract language to push all tariff-related risk downstream. This typically includes specific pricing terms and force majeure provisions designed to insulate themselves from both cost and schedule Managing Tariff Risk in Construction Contracts Billy Nelson EPIC Insurance Brokers & Consultants Alex Underwood EPIC Insurance Brokers & Consultants Contract Law

PCCA Journal|3rd Quarter 2025 17 impacts. Fortunately for mid-tier contractors, there are multiple strategies available to counter these common upstream contracting tactics and to otherwise manage tariff-related risk. 1. Specific Tariff Cost Provisions. One strategy is to clearly allocate tariff-related cost risk in the contract through specific tariff cost provisions. If the upstream contract is silent on tariffs, contractors should propose language that allows for price adjustments if tariffs are imposed or increased after the contract date. If the contract includes tariff-specific language, downstream contractors should attempt to soften it through redlines, retaining part of the risk while shifting the remainder upstream. If leverage is limited, the contractor may need to flow the risk down to their subcontractors. 2. Price Escalation Clauses. Another approach is to use indexed or escalation-based pricing. This involves tying pricing to a published commodity index, such as the Producer Price Index for steel or electrical equipment. If the index increases beyond a defined threshold, the contract price adjusts accordingly. For example: “The Contract Price for steel components shall be adjusted in accordance with changes to the Producer Price Index for Steel Mill Products. If the index increases more than five percent from the baseline established at contract execution, Downstream Party shall be entitled to a corresponding price adjustment.”² 3. Firm Supply/Equipment Costs. Mid-tier contractors can also mitigate tariff risk by establishing firm pricing with material suppliers for the full duration of the project. This can be done through fixed-price purchase orders or preorders with clearly defined cancellation and terminationfor-convenience terms. For example: “Supplier agrees to hold pricing firm through [Date], subject only to termination for convenience by Contractor with [X] days’ notice and no penalty beyond actual incurred costs.” 4. Partial Cost-Reimbursable Pricing. For discrete, high-risk procurement items, such as imported HVAC systems or specialty switchgear, mid-tier contractors may use costreimbursable or unit-rate pricing, applicable only to those specific items. This limits exposure while maintaining price certainty for the rest of the project. 5. Mutual Termination for Convenience. Another option is to negotiate a termination-for-convenience clause that applies to the downstream party. Typically, this right is reserved for the upstream party, but it can serve as a last-resort option for the mid-tier contractor to exit a project that becomes financially unviable due to tariff-related impacts. Such a provision might read something like: “Downstream Party may terminate this Agreement for convenience upon [X] CONDUX.COM | 800-533-2077 CABLE INSTALLATION EQUIPMENT From the most challenging applications to routine projects demanding high productivity, Condux fiber optic cable blowers and underground pullers improve efficiency and safety on every jobsite. Plus, cable installation tools and equipment from Condux are backed by decades of product knowledge and exceptional customer service. Now that’s Condux True Blue ! The Blue Ox™ Cable Puller APS 75 Cable Puller Gulfstream™ 400 Fiber Optic Cable Blower Continued on page 18

PCCA Journal|3rd Quarter 2025 18 days’ written notice. In such event, Downstream Party shall be entitled to payment for work performed through the date of termination, plus reasonable demobilization costs.” 6. Force Majeure. In addition to protecting against the risk of cost increases, mid-tier contractors need to manage the risk of tariff-related delays and the damages, particularly liquidated damages, that may be incurred as a result. For example, mid-tier contractors should consider negotiating to include tariff-related supply chain disruption in the force majeure provisions of their upstream contracts. What this does is trigger the protections of the force majeure clause to render tariff-related disruptions an excusable delay, thus not triggering the liquidated damages clause. For example, the contract might specify: “Delay in delivery of imported materials resulting from newly imposed or increased tariffs shall constitute a Force Majeure Event, entitling Downstream Party to a time extension and relief from liquidated damages.” When acting as the upstream party, on the other hand, the mid-tier contractor should consider reversing this language to avoid granting similar relief downstream. 7. Financial Hedging. On a non-contracting front, mid-tier contractors may consider financial hedging strategies to mitigate tariff-related risk, in consultation with a qualified financial advisor. For example, exchange-traded financial instruments such as commodity futures or options can help hedge against price increases in key materials like steel, aluminum, or copper. Finally, the application of these strategies on any given project depends on a range of factors, including the contractor’s bargaining power, the language of the prime contract, the likelihood of tariffs being imposed on key materials or equipment, and the project’s financial structure. These strategies should not be viewed as rigid or standalone measures, but rather as flexible tools or puzzle pieces within a broader risk management framework. Depending on the circumstances, they may be deployed individually or in combination to address project-specific risks. When uncertainty arises regarding which strategies to incorporate into a particular contract or context, contractors are strongly encouraged to seek legal counsel from a licensed attorney and financial guidance from a Certified Financial Analyst or other qualified advisor. Billy Nelson is a Contracts Attorney in EPIC’s Construction and Infrastructure Group, based in Birmingham, Ala. He assists construction and infrastructure firms in identifying and mitigating legal risk through contract negotiation and contract-insurance alignment. Alex Underwood is an Attorney at Epic Insurance Brokers & Consultants. She uses her extensive litigation experience to identify and mitigate legal and contractual risks for clients. EPIC’s Design & Construction Group represents clients in all subsets of the industry, including general contractors, specialty contractors, architects and engineers, real estate and institutional owners and developers, energy and environmental service firms, and construction material suppliers. For more information, visit epicbrokers.com/construction. Notes 1. See The President’s 2025 Trade Policy Agenda, Office of the United States Trade Representative, discussing tariffs as “a legitimate tool of public policy,” including their use to “promote a strong national defense.” 2. All sample contract language provided in this article is for illustrative purposes only and does not constitute legal advice or recommended contract terms. The relevance and efficacy of any particular contract language is context dependent. Contractors should consult with legal counsel before incorporating any language into their agreements. Contract Law Continued from page 17 PCCA 2026 Mid-Year Meeting, The Willard Washington, DC September 16 - 19, 2026

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PCCA Journal|3rd Quarter 2025 20 Safety Watch OSHA Celebrates 50 Years of Partnering with Small Businesses For more than half a century, the U.S. Department of Labor’s Occupational Safety and Health Administration’s On-Site Consultation Program has been helping small and medium-sized businesses protect workers and improve safety at no cost and with complete confidentiality. Launched in 1975, the program has grown to serve all 50 states, the District of Columbia, and several U.S. territories. In the last decade alone, the program averaged nearly 24,000 worksite visits annually, with 98 percent of these visits occurring at worksites with 250 or fewer employees, and prevented almost three million workers from exposure to hazards each year. A 2023 OSHA economic analysis estimated that these efforts generate $1.5 billion in national benefits annually, resulting in fewer injuries and illnesses, lower workers’ compensation costs, and increased productivity. Throughout its 50 years, the program surpassed one million visits in 2010, supported recovery efforts following national disasters such as 9/11 and Hurricanes Katrina and Maria, launched digital resources like the Small Business Handbook app to make safety information more accessible, and created the Safety and Health Achievement Recognition Program, which honors small businesses with outstanding safety programs. As it marks this milestone, OSHA reaffirms its dedication to practical, science-based solutions that protect workers and fuel business success for the next 50 years to come. Safe + Sound Week 2025: Tools and Tactics for Safer Jobsites Each August, OSHA hosts Safe + Sound Week, a national campaign designed to promote workplace health and safety programs. From August 11 to 17, construction employers are encouraged to participate by promoting core elements of safety programs: management leadership, worker involvement, and effective hazard identification and response. This year’s theme, emergency preparedness, hits home in an industry where unplanned events, from falls to fires, can escalate quickly if teams aren’t trained and ready. On the Safe + Sound webpage, OSHA provides free resources tailored to the construction sector, including customizable safety talks, evacuation drill templates, visual aids, quizzes, and checklists. These tools are designed to make it easy for firms of all sizes to implement meaningful safety activities without disrupting operations. Those who complete the week’s activities can earn a certificate of recognition from OSHA and a spot on their national participant map for their safety leadership. While the incentive is symbolic, the impact of worker-centered safety programs is anything but. Participation starts with registration on OSHA’s website using the link below. Safe + Sound Week Registration: www.osha.gov/safeandsoundweek/ signup. Additional OSHA Resources: www. osha.gov/safeandsoundweek/plan-andpromote.

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