Every roofing contractor knows he must be knowledgeable about roof systems, business management and industry issues to achieve long-term success. But what many fail to realize are the impending legal pitfalls their companies face daily. Issues such as contract language, employee relations, regulatory compliance, payment provisions, insurance coverage, and codes and standards can threaten a company's profitability and even its existence. The secret is to know how to avoid litigation, manage risk and protect your company from potentially disastrous legal liability.
"For years, the National Roofing Legal Resource Center [NRLRC] was the best kept secret in the roofing industry," says Tom Miller, NRLRC director and chief operating officer of The Zero Co., Louisville, Ky. "But NRLRC now wants to become much more prominent as the organization is focusing on assisting members in resolving legal disputes, ultimately saving them time and attorneys' fees; building up its database of legal cases and information; and acting as a legal advocate for roofing contractors throughout the U.S."
Then and now
NRLRC, which is open to roofing, roof deck and waterproofing contractors, was formed by NRCA in 1979 as a separately funded 501(c)(3) organization called the National Roofing Litigation Center. The center served as a central source of information for roofing contractors' legal disputes as a result of the rising tide of litigation. The organization, serving just less than 200 members within the first six months of being formed, focused on deficiencies pertaining to the two-ply "Bond-Ply" roof system. The Bond-Ply system had been criticized severely for its insufficient tensile strength, and more than 150 lawsuits were filed. Architects, general contractors and roofing contractors commonly were named as parties in those lawsuits and charged with faulty design and workmanship.
In 1981, the organization officially changed its name to the National Roofing Legal Resource Center and shifted direction to concentrate on reducing contractors' legal fees by developing strategies and delivering unique products and services to enable contractors to manage successfully and respond effectively to legal issues affecting their businesses. At this time, NRLRC served about 275 members and focused on resolving issues involving urethane blistering, asbestos felts, polystyrene insulation and single-ply roof systems.
And the organization continues to grow and evolve—it now has 370 members. According to its 2005 plan of work, NRLRC's goal is to become more visible, proactive and progressive during the next three years by taking a more innovative approach toward its business strategies and operating practices.
"Our goal is to let contractors know NRLRC can provide immediate assistance in the event of a looming legal problem and guidance to prevent legal problems in the future," comments Phil McKinney, NRLRC's immediate former president and president of Evans Service Co., Elmira, N.Y. "Contractors don't realize what an invaluable resource NRLRC can be until they become members."
From good to great
According to Jim Collins, author of Good to Great, all good-to-great organizations begin the process of finding a path to greatness by confronting the true, and often brutal, facts about their current reality.
During its most recent strategic planning process, NRLRC started working on its own path to greatness by determining which activities best support the organization's core values and strengthening those initiatives while eliminating others entirely. As a result, five priorities were identified on which NRLRC will focus so it can begin its journey of evolving into a bigger and more viable organization for its members.
The five priorities include education, access, publications and products, advocacy and communications.
Education
NRLRC holds its educational seminar, Roofing Issues: Decks to Dockets, each year to address current legal, technical, insurance and safety issues affecting professional roofing contractors. This year's seminar will be held Nov. 3-5 at the Hilton Los Cabos Beach & Golf Resort in Cabo San Lucas, Mexico. During the seminar, attendees hear from industry experts while interacting with their peers in a hands-on format. They share ideas with one another; find solutions to problems; and make important business contacts to enhance their businesses.
NRLRC's annual breakfast program is held each year during the International Roofing Expo. During the program, speakers offer unique perspectives addressing industry-related legal and technical issues throughout the U.S.
During the year, NRLRC also sponsors online Ask-the-Expert legal programs pertaining to various legal issues. These interactive programs are conducted live and feature speakers who are industry leaders and experts.
Because education is a top priority for NRLRC, additional Ask-the-Expert sessions will be offered throughout the year and a second seminar is being considered for 2007.
Access
As part of their memberships, NRLRC members receive access to free, expert legal assistance through NRCA's general counsel. NRLRC works closely with Stephen Phillips, a partner with the law firm Hendrick, Phillips, Salzman & Flatt, Atlanta, who has provided members with legal advice for some of their toughest business issues since the organization's inception.
In addition to consulting Phillips, members also can access NRLRC's online legal help line at its Web site, www.nrlrc.net. NRLRC works with the Chicago-based law firm Neal, Gerber & Eisenberg to provide expert legal assistance.
To research legal issues affecting their businesses, NRLRC members can access the organization's comprehensive database of more than 225 legal publications about roofing-related legal topics. This information is found in the "For Members Only" section of NRLRC's Web site and cataloged by topic, author and keyword.
Also available online is a list of various state agencies that license and register construction contractors. Although all states do not have roofing-specific regulations, they may have construction or specialty contractor licensing requirements that affect roofing contractors. Information about how to obtain a license following a natural disaster can be found on NRLRC's Web site, enabling members to quickly access state regulations following a storm such as Hurricane Katrina.
NRLRC also is devoting resources to a research librarian and will add a paralegal to the staff by late 2006 so the newest cases, trends and litigation affecting the roofing industry can be shared with its members.
Publications and products
NRLRC currently offers three complimentary publications to members. One is the OSHA Citation Defense Manual. This manual assists roofing contractors in becoming more knowledgeable about OSHA regulations; more familiar with OSHA procedures, practices and terms; better prepared to handle OSHA inspections; and better equipped to defend themselves against alleged OSHA violations and improper citations.
The newest publication is Employment Law: A Legal Guide for Roofing Contractors, which addresses all the stages of the employment relationship and provides an overview of the most pertinent federal laws applicable to a roofing contractor's business.
Members also receive a free copy of the Roofing Contractors Manual for Responding to Alleged Superfund Liability, which is intended to help roofing contractors respond to allegations of Superfund liability while providing them with information about how to mount an efficient and cost-effective challenge to allegations of Superfund liability.
In 2006, NRLRC plans to publish additional legal articles and publications about topics such as handling an asphalt fumes claim, how to handle a lawsuit, and mediation and arbitration. The organization also plans to develop standard document forms, build a NRLRC library of books currently available about construction law, and issue white papers and special reports about topics affecting roofing contractors' businesses.
Advocacy
During the next year, the organization intends to become more of a legal advocate by filing amicus briefs and developing position papers proactively supporting significant legislative issues.
"I'd like to see NRLRC begin to track litigation, provide data to support initiatives and take positions, ultimately creating a synergy with ROOFPAC, NRCA's political action committee," says Bill Good, NRCA's executive vice president. "By doing so, NRLRC will become an important advocate for the entire roofing industry."
Communications
NRLRC's monthly e-newsletter, "The Center," keeps members educated and updated about the latest legal cases, employment issues and court decisions available to help improve members' operations. Past issues are archived in the For Members Only section of www.nrlrc.net.
The online news section of NRLRC's site provides members with the latest legal information available. For instance, the most recent legal bulletin reminded employers about the importance of complying with local, state and federal laws that require them to post equal employment opportunity (EEO) notices in conspicuous places for employees about their rights. The bulletin summarizes two recent appellate court decisions about employers who were sued by employees for failure to post EEO notices. In both cases, lawsuits were permitted to proceed even though plaintiffs didn't file charges within the limitation period because their employers failed to comply with posting obligations.
NRLRC also provides members with access to an online members-only discussion forum and will publish its first printed membership directory later this year.
What's ahead
To transform NRLRC from a good to great organization, NRLRC's board of directors will need to obtain a deeper understanding of what the organization is passionate about, what it does best and what will, ultimately, drive it to get there. NRLRC will be busy in the months ahead trying to uncover answers to all three while working toward increasing its membership base and focusing on its priorities to produce the greatest benefits for its members.
"It's time for NRLRC to start serving a broader market of roofing contractors who can benefit from all we have to offer," says Rob McNamara, NRLRC president and president of F.J.A. Christiansen Roofing Co. Inc., Milwaukee. "The board of directors is extremely committed to transforming NRLRC into a great organization that provides invaluable legal information for roofing contractors. Right now, we're a work in progress."
To become involved with NRLRC, contact Alison LaValley, NRLRC's executive director, at (800) 323-9545, Ext. 7573, or alavalley@nrca.net.
Alison L. LaValley is executive director of NRLRC and NRCA's associate executive director of marketing.
2005-06 NRLRC board of directors
The National Roofing Legal Resource Center (NRLRC) is managed by nine directors who serve three-year terms and are appointed each year by the NRCA president. The board supervises, controls and directs the operations of the organization and actively promotes its purpose. Following are the directors for 2005-06:
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