The Alaska Contractor - Summer 2008

PRESIDENT’S MESSAGE
New issues face industry
I’d like to review some of the highlights of my first six months
as your AGC Chapter President. So far it has been an educational
and interesting time. I’ve had the opportunity to attend
the Western Chapters Conference in February, the National Convention
in March and the National and Chapter Leadership Conference
in Washington, D.C., in April. At these events I’ve met with
numerous construction professionals and attended many sessions
regarding issues challenging our industry. Collectively our industry
is trying to improve its image. We need to refer to our construction
managers as “professionals.” Architects and engineers are referred
to as professionals and many construction managers have degrees
that are no less important than theirs. Our many years of practical
experience add incredible value to a project. Some important new
issues relating to our industry are as follows.
AGC’s Contracts and Construction Law Area provides a single
source for construction contract knowledge for all building methods.
AGC is one of the key organizations in ConsensusDOCS,
which has 21 participating organizations that represent designers,
owners, contractors, subcontractors and sureties. The groups
worked together to draft contracts that are in the best interests of
the project, rather than representing only one association’s constituency.
The unprecedented buy-in for these contracts reflects
a genuine effort to identify and employ best practices to better
the industry. American Institute of Architects chose not to participate
in ConsensusDOCS. AGC endorses ConsensusDOCS
and we hope that they will replace AIA documents, which have
dominated the industry for many years. We also hope that public
agencies and private owners will revise their contracts to incorporate
many provisions contained in ConsensusDOCS. For the
first time AGC has not endorsed the new versions of the AIA
documents because they are shifting an unreasonable amount of
risk from the designers and owners to the contractor. Please visit
the AGC Web site for free samples.
Building Information Modeling, “BIM,” is the process of generating
and managing a building information model through the
use of three-dimensional, intelligent design information. Technology
improvements and integration fostered by expanded use
of BIM are dramatically increasing efficiency in the industry. The
U.S. Army Corp of Engineers recently adopted the Bentley platform
as its standard. There are several other competing platforms
in the industry. BIM is not only beneficial for contractors who are
trying to coordinate many disciplines in a confined space but it is
also useful after occupancy for facility management and maintenance.
Recently AGC added the Building Information Modeling
Addendum to the ConsensusDOCS comprehensive catalog of
contracts and forms, which address all project delivery methods.
This addendum is the first and only industry standard document
ROGER HICKEL
President
to globally address the legal uncertainties associated with using
BIM. The BIM Addendum further establishes ConsensusDOCS’
reputation as a leader in innovative construction contracts.
Environmental issues are continually challenging contractors.
It’s no coincidence that the largest office buildings in
Washington, D.C., are occupied by the Environmental Protection
Agency. Federal environmental policies seek to minimize and
mitigate the environmental footprint of the construction process.
Meeting environmental requirements has become a huge and
growing responsibility for contractors, delaying if not threatening
construction projects, and increasing the cost of doing business.
To minimize the environmental barriers to business opportunities,
environmental policies must be reasonable and achievable.
AGC has partnerships with the U.S. Environmental Protection
Agency and with the International Erosion Control Association.
Our local chapter is very active in training Certified Erosion Sediment
Control Leads, “CESCL.” We also have information on how
to write and implement a SWPPP plan.
Another environmental issue is the National Clean Diesel
Campaign. So far it is voluntary, but the state of California is trying
to make it mandatory in California. Federal and state agencies
have had a tendency to adopt stricter California regulations
in the past. Did you know that a 175 horsepower bulldozer emits
as much particulate matter as 500 cars? The U.S. Environmental
Protection Agency currently has available nearly $50 million
in grant funding to reduce emissions from diesel engines nationwide,
including those used in exiting fleets of construction
equipment. These funds are only available for voluntary compliance
and not available for meeting new state or federal agency
requirements. Visit the AGC Web site for more information.
Another important issue facing our industry, especially in the
southern states, is immigration reform. What is important to all
contractors is the pending legislation that puts the burden of enforcement
on employers and increases the penalties to $16,000
for multiple violations. The Department of Homeland Security is
expected to rule this year to amend the Federal Acquisition Regulations
to require that contractors and subcontractors use the E-
Verify system to verify immigration status of employees, not just on
federal funded contracts but on the contractor’s entire workforce.
There are so many new regulations and requirements
placed on contractors every day. Remember how much easier
it was to build 10, 20 or 30 years ago? I often wonder why we
do not value these new regulations and requirements in our
bids. Does the added risk really justify working at margins that
are historically lower than what they were 10 years ago? We all
know that contractors are plagued by being very optimistic and
competitive by nature!