Commercial Integrator November 2021 - 36

INDUSTRY Pivot to Profit
Paper, " dove into the legal tools integrators
have at their disposal to get the most out
of their projects and protect themselves as
they do business. It comes after an Aug. 31
NSCA blog post of the same name about
how to de-risk project contracts.
Chuck Wilson, NSCA CEO, touched on
some of the points in the blog during the
session, including considerations around
scheduling, supply chain issues (stop us
if you've heard about this lately), labor resources
and the importance of determining
prevailing wage.
However, we learned about additional
de-risking measures from Lauren Mastro,
vice president of legal at AVI-SPL. Those
measures include additional language to
ensure integrators are paid for the work
done if a contract is terminated.
Contracts generally include such
language that protects the integrator's
payment for work done in the event of a
termination, but there may be other costs
that aren't included, Mastro says.
" But what about all those other costs:
restocking fees incurred from manufacturers,
your demobilization costs and return
shipping costs? " Mastro says. " These kinds
of things are all additional costs that we
may incur as a result of a termination. "
Mastro also called attention to indemnification
clauses, which have a tendency
to place more risk on the integrator rather
than the general contractor. In large part,
those contracts don't include language
about whose acts or omissions were
responsible for the incident.
" What we want to say is, 'Contractor/
integrator will indemnify the owner GC
from claims to the extent caused by the
contractor integrators, " Mastro says.
Integrators should also look to gain
more control over project scheduling and
get paid for overtime or project acceleration
costs.
The COVID-19 pandemic has opened
the doors to remote and hybrid work, but
that has also opened the door to cyberattacks,
with 74% of respondents to a recent
survey linking recent business compromise
to remote work technologies.
Now, language about cybersecurity is
finding its way into contracts as organizations
look to protect themselves from
36
Cybersecurity was top of mind throughout Pivot to Profit, as the emphasis on integrating
more IT technology into portfolios also opens up more security risks.
potential cyberattacks that come as a result
of an integration firm being compromised,
says Siddharth Bose, a former systems
administrator and attorney at Ice Miller LLP.
" These days, every organization should
have some level of cyber liability coverage, "
Bose says. " More and more customers
are requiring integrators and subcontractors
to carry cyber insurance.
The cybersecurity insurance industry is
relatively new, but is becoming increasingly
important as the threat landscape
becomes much harder to navigate.
These policies can protect integrators
in the event of business interruption due
to cyberattacks like ransomware, but
really come into play when customers are
harmed as a result.
Bose urges integrators to do their
research on cyber-insurance policies and
really understand their coverages.
" It's important for you to understand
what the coverages are, what the exclusions
are, what they are protecting you with
and what they're not, " Bose says. " Because
the worst thing that can happen is you say
you have cyber liability insurance, but when
it comes time to file a claim, you find out
you're excluded for a variety of reasons. "
Navigating Vaccine Mandates
During an open panel discussion on a
range of topics including supply chain
shortages and labor shortages, panelists
and attendees discussed vaccine requirements
and different ways to navigate this
Commercial Integrator NOVEMBER 2021
tricky subject.
Depending on state and local regulations,
workers may need to be vaccinated
against COVID-19 in order to work. In fact,
any firms that do work for the federal government
must be vaccinated by Dec. 8.
President Joe Biden also recently announced
that companies with more than
100 workers must mandate vaccines or
weekly testing for employees. However, as
of mid-October, those rules had yet to be
in place.
It's also up to your customers, as some
verticals like education or healthcare may
require evidence of your staff's vaccination
or negative test.
During the session, leaders of integration
firms discussed the various ways
they're dealing with this issue, and these
are some of the approaches discussed:
› Don't force employees to get vaccinated
but encourage it.
› However, company leaders may need
to know who is vaccinated if a customer
requires it.
› Constant communication and education
(from reputable sources) about the
pandemic and vaccine.
› Offering financial incentives to employees
to get vaccinated, including cash,
gift certificates and more.
› Offer paid time off for employees to go
get vaccinated.
› Help employees set up the appointment.
› Augment service calls and installations
with a third-party. CI
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Commercial Integrator November 2021

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