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DECEMBER 2011 Contents<br />

16<br />

12<br />

16<br />

Inside Washington<br />

Special Report<br />

By Eben Wyman<br />

<strong>December</strong> 2011 | www.utilitycontractoronline.com<br />

NUCA enjoys significant wins in the first session<br />

of 112th Congress and looks ahead to important<br />

challenges.<br />

The Next Evolution<br />

in Innovation<br />

By Keith Gribbins<br />

Discover 10 utility construction machines and<br />

technologies changing the equipment industry.<br />

A Well Balanced Backhoe<br />

22 DEPARTMENTS<br />

24<br />

26<br />

Loader<br />

By Norman Blair<br />

24<br />

Enhance productivity and promote safety with<br />

these optional backhoe loader technologies.<br />

Eight Ways to Protect Your<br />

Construction Company<br />

By Paul Tonella and Benjamin Greenberg<br />

Ensure your business decisions and company<br />

structure correspond with proper legal<br />

compliance.<br />

Then There Was Light<br />

By Todd Razor<br />

<strong>Utility</strong> contractors need not fear the dim<br />

prospect of being left in the dark.<br />

8 Groundbreaking News<br />

40 Calendar<br />

41 The Pipeline<br />

42 Advertisers’ Index<br />

NUCA<br />

DEPARTMENTS<br />

6 Chairman’s Message<br />

28 Safety Management<br />

30 NUCA News<br />

32 Convention Preview<br />

4 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


nuca CHAIRMAN’S MESSAGE<br />

NUCA Provides Value in 2011<br />

In a follow up from my last Chairman’s Message, I am happy to<br />

report that the 3 percent withholding tax has been fully repealed<br />

by Congress and signed into law by the President. This important<br />

achievement ranks high among the successes NUCA has to its credit<br />

in recent years. While NUCA works diligently to support legislation<br />

that affects the utility and excavation industry, a final unilateral<br />

victory in the lobbying game is pretty rare. I am very proud of<br />

NUCA’s staff and all of the NUCA members that have worked so hard<br />

to make this legislative effort a success.<br />

Now is no time to rest on our laurels, however. Before the President’s<br />

ink had a chance to dry, NUCA’s lobbying staff was giving exciting updates about the<br />

progress we are making on elimination of the current cap on private activity bonds that<br />

could be used to fund water and wastewater projects. We anticipate positive momentum<br />

that could make 2012 an exciting year for this legislation (HR 1802/B 939).<br />

As 2011 comes to a close, it is encouraging to know that NUCA has provided such<br />

quantifiable value to its members. We can be proud of our accomplishments to date, and at<br />

the same time be excited for the things to come. Another area where NUCA has demonstrated<br />

improved value for its members is the new “National Partners” (NP) program.<br />

As a part of NUCA’s strategic plan, the NP program was unveiled to provide better value<br />

for our associate members who want to engage with our membership beyond membership<br />

alone. After substantial due diligence, we realized that many of our valued associate<br />

members were becoming disenchanted with the conventional trade show format, yet still<br />

wanted to engage with contractors and other NUCA members.<br />

We also realized that associate members were spending a lot of money with unrelated<br />

third party vendors (hotels, trade show suppliers, freight, etc.) that provided no value to<br />

NUCA. It was clear that NUCA provided a lot of advertising and networking value that<br />

would suit the different levels of the NP program. We unveiled the program in 2011 and<br />

have received very positive feedback and participation. This program has participation<br />

levels that can accommodate any budget, but more importantly, provides different<br />

opportunities for value that associate members seek. Parts of the program resemble<br />

previous sponsorship opportunities such as convention sponsorship, but there are many<br />

new “value drivers” in the various packages. NUCA also offers a new range of website<br />

advertising starting in 2012. With just a few months of soliciting participants under our<br />

belt, we believe we have discovered the future of associate member sponsorship and we<br />

haven’t looked back since.<br />

NUCA is proud to have provided its membership with some larger, more visible<br />

accomplishments, but I would also like to recognize NUCA staff and leadership for the<br />

day-to-day small accomplishments that are the backbone of quality representation our<br />

members receive as part of NUCA. NUCA is committed to bringing the same high level of<br />

value demonstrated in 2011 into all its activities in 2012.<br />

6 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011<br />

Happy Holidays,<br />

Ryan Schmitt<br />

NUCA Chairman of the Board<br />

NUCA | www.nuca.com<br />

Officers<br />

Chairman of the Board<br />

Ryan Schmitt — Petticoat-Schmitt Civil <strong>Contractor</strong>s, FL<br />

Chairman-Elect of the Board<br />

James Barron — Ronkin Construction Inc., MD<br />

Vice Chairman of the Board<br />

Florentino Gregorio — Anchor Construction Corp., D.C<br />

Treasurer<br />

Ronald T. Nunes — R.T. Nunes & Sons Inc., R.I.<br />

Secretary<br />

Bruce Wendorf — Forsberg Construction Inc., FL<br />

Immediate Past Chairman of the Board<br />

Dan East — Reynolds Southwest Inc. N.M.<br />

Asst. Secretary<br />

Bill Hillman — bhillman@nuca.com<br />

NUCA<br />

Board of Directors<br />

CONTRACTOR<br />

DIRECTORS<br />

Lane Berg, FL<br />

Kari Biernacki, N.M.<br />

Mike Donatelli, R.I.<br />

Glenn Ely, PA<br />

Mark Fuglevand, WA<br />

Kara Habrock, NE<br />

Richard R. Harp, GA<br />

Bill Martinak, OR<br />

Chad Reed, DE<br />

Jeff Rumer, CO<br />

Mark Scoccolo, WA<br />

Keith Steen, GA<br />

Andy Wolf, IA<br />

NON-CONTRACTOR<br />

DIRECTORS<br />

Albert Heckmann, OH<br />

Lewis Long, NC<br />

Roger B. Mohr, IL<br />

DIRECTORS-AT-LARGE<br />

Kevin Cripps, NC<br />

Thomas O’Rourke, NV<br />

NUCA<br />

Staff<br />

Chief Executive Officer<br />

Bill Hillman — bhillman@nuca.com<br />

Vice President of Marketing<br />

and Communications<br />

Bonnie J. Williams — bonnie@nuca.com<br />

Benjamin Media<br />

www.benjaminmedia.com<br />

Publishing Team<br />

Publisher<br />

Robert D. Krzys — robk@benjaminmedia.com<br />

Direct: (330) 315-2061<br />

Managing Editor<br />

Keith Gribbins — kgribbins@benjaminmedia.com<br />

Direct: (330) 315-2197<br />

Associate Editor<br />

Pam Kleineke — pkleineke@benjaminmedia.com<br />

Direct: (330) 315-2198<br />

Graphic Designer<br />

Elizabeth C. Stull — estull@benjaminmedia.com<br />

Marketing Director<br />

Kelly Dadich — kdadich@benjaminmedia.com<br />

Direct: (330) 315-2056<br />

Regional Sales Manager<br />

Ryan Sneltzer — rsneltzer@benjaminmedia.com<br />

Direct: (330) 315-2114<br />

Regional Sales Representative<br />

Tim Richards — trichards@benjaminmedia.com<br />

Direct: (330) 315-2129<br />

Audience Development Manager<br />

Alexis R. White — awhite@benjaminmedia.com<br />

November 2011 Volume 35, Number 11, <strong>Utility</strong><br />

<strong>Contractor</strong> (ISSN 1098-0342) is published monthly<br />

for the National <strong>Utility</strong> <strong>Contractor</strong>s Association by<br />

Benjamin Media Inc., 1770 Main Street, PO Box<br />

190, Peninsula, OH 44264. Periodicals postage paid<br />

at Peninsula, OH and additional office. One year<br />

subscription rates: Complimentary in the USA &<br />

Canada and $99 in foreign countries. Single copy<br />

rate: $10.00. ©2011 NUCA. All rights reserved<br />

by the National <strong>Utility</strong> <strong>Contractor</strong>s Association for<br />

articles contained herein except where otherwise<br />

noted. No part of this publication may be reproduced<br />

or transmitted by any means without written<br />

permission from the publisher. Printed in the U.S.A.<br />

POSTMASTER: Send address changes to: Benjamin<br />

Media P.O. Box 190 Peninsula, OH 44264-0190 USA.<br />

Canadian Subscriptions: Canada Post Agreement<br />

Number 7178957. Send change of address information<br />

and blocks of undeliverable copies to Canada Express;<br />

7686 Kimble Street, Units 21 & 22, Mississauga, ON<br />

L5S 1E9 Canada


groundbreaking news<br />

No Loans = Less Jobs<br />

Ongoing Credit Crunch Increases Stalled Projects<br />

and Lingering Unemployment<br />

One-in-five stalled projects are directly<br />

resulting from financing problems,<br />

but did you know that more than 25<br />

percent of projects reported as stalled<br />

could qualify for LEED, Green Globes or<br />

other green certification status?<br />

The American Institute of Architects (AIA) is an excellent organization,<br />

and like NUCA, it’s a torchbearer for its industry (in this case<br />

professional architects). AIA is always releasing comprehensive reports<br />

on the construction industry and its latest one — Stalled Construction<br />

Projects and Financing Problems — caught our eye. The<br />

report concludes that the major obstacle holding back job creation<br />

in the United States is the persistent lack of construction financing,<br />

despite record low interest rates.<br />

“This report should lay to rest any doubt about what is a<br />

key source for holding back job creation,” said Kermit Baker,<br />

Chief Economist of the AIA.<br />

“It is the lack of financing<br />

especially to the<br />

design and construction<br />

sector,<br />

which accounts<br />

for $1 in $9 of<br />

U.S. Gross Domestic<br />

Product.”<br />

Relying on data compiled by McGraw-Hill Construction<br />

and Reed Construction Data, the report found that:<br />

1. The share of projects stalled due to financing problems<br />

through August 2011 has almost doubled since 2008.<br />

2. One-in-five stalled projects are directly resulting from financing<br />

problems.<br />

3. Financing problems account for a higher share of stalled<br />

projects in the education and multi-family sector.<br />

4. More than 25 percent of projects reported as stalled due to<br />

the credit crunch could qualify for LEED, Green Globes or<br />

other green certification status.<br />

5. Financing issues are less of a factor holding back projects in the<br />

manufacturing, private health care and retail environments.<br />

“Whatever the reason — be it over-regulation, the threat of a double-dip<br />

recession or the reluctance to have too many loans on the<br />

books — lenders are just not lending to a major job-producing sector<br />

of the American economy,” Baker noted. “Until more credit is<br />

extended, the potential of non-residential construction to promote<br />

greater levels of economic growth will not be realized.”<br />

The construction industry is one of the most volatile sectors in the<br />

U.S. economy and, as such, benefits greatly from economic expansions<br />

and suffers greatly in economic downturns. The most recent<br />

economic cycle has been particularly devastating for the construction<br />

industry. Since the end of 2008, construction spending in the<br />

United States has declined by more than a quarter, or by almost<br />

$300 billion, with the loss in this sector alone accounting for a 2 percent<br />

decline in the size of the U.S. economy. But even this significant<br />

decline underestimates the total impact of this loss on the economy.<br />

Want to learn more? Visit AIA online at www.aia.org/index.htm.<br />

8 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


groundbreaking news<br />

Komatsu’s Hybrid Excavators<br />

Qualified for CARB Funding<br />

Some manufacturers use green machines as good PR —<br />

designing one-off hybrid concept vehicles that make nice showpieces<br />

at press events and trade shows, but aren’t really mass<br />

produced for the construction market. That’s not Komatsu. The<br />

global equipment manufacturer is one of the few innovators in<br />

the machine market that’s putting hybrids on the market today.<br />

The Komatsu Road Machinery group announced in late<br />

November that Komatsu’s Hybrid HB215LC-1 hydraulic excavator<br />

is available at its California locations and qualifies for<br />

funding through the California Air Resources Board’s (CARB’s)<br />

Hybrid Off-Road Equipment Pilot Project.<br />

“The CARB program is a terrific opportunity to purchase<br />

the excavator at substantial savings and help improve the<br />

environment with lower emissions,” explains Steve Branson,<br />

President and CEO at Road Machinery. “Komatsu’s Hybrid<br />

HB215LC-1 hydraulic excavator is the product of groundbreaking<br />

research and development. With its unique hybrid<br />

system, NOx and CO 2<br />

emissions are lower and fuel requirements<br />

are up to 25 percent less than comparable models.”<br />

The HB215LC-1 is powered by the Komatsu Hybrid<br />

System, which includes Komatsu’s recently developed<br />

electric swing motor, power generator motor, capacitor<br />

and a 139-hp diesel engine. Komatsu developed its revolutionary<br />

hybrid system to work on the principle of swing<br />

energy regeneration and energy storage using the Komatsu<br />

Ultra Capacitor system. Komatsu’s Ultra Capacitors provide<br />

fast energy storage and instantaneous power transmission.<br />

The kinetic energy generated during the swingbraking<br />

phase is converted to electricity, which is sent<br />

through an inverter and then captured by the Ultra<br />

Capacitor. This captured energy is then discharged very<br />

quickly for upper structure rotation and to assist the<br />

engine as commanded by the hybrid controller when<br />

accelerating under workload conditions.<br />

Through the program mentioned above, special CARB<br />

Hybrid Environmental Incentive Rebates are available for<br />

HB215LC-1 excavator purchases. The project is being<br />

administered and evaluated by the University of California<br />

Riverside College of Engineering — Center for Environmental<br />

Research and Technology. For a limited time, Road<br />

Machinery is offering 0 percent financing for as long as 60<br />

months to qualified buyers.<br />

Komatsu’s Hybrid HB215LC-1 hydraulic excavator reuses kinetic energy captured during the swing-braking phase of boom/<br />

cab movement to assist its 139-hp diesel engine, lowering fuel costs and emissions.<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 9


groundbreaking news<br />

Father of the Backhoe<br />

Loader Named to<br />

Construction Equipment<br />

Hall of Fame<br />

Dig and load are the flagship operations of many utility<br />

contractors, and nothing quite performs those two tasks<br />

better than a backhoe loader. More than 50 years ago,<br />

a clever engineer named Elton Long first designed and<br />

manufactured the original tractor loader backhoe in the<br />

United States. In November, the Association of Equipment<br />

Manufacturers (AEM) inducted Long into the Construction<br />

Equipment Hall of Fame, the equipment industry’s<br />

highest award.<br />

“Elton Long’s induction into the Construction Equipment<br />

Hall of Fame is a great honor for his family, as well<br />

as his extended family at Case,” said Jim McCullough,<br />

President and CEO of Case Construction Equipment. “We<br />

are pleased to accept this distinguished recognition of Mr.<br />

Long’s many significant contributions, his innovation and<br />

his leadership.”<br />

Long’s innovation propelled Case Construction into a<br />

position of leadership in the construction equipment industry,<br />

which continues today. Long’s credits go beyond<br />

being the primary engineer responsible for designing the<br />

Case 320 backhoe loader; he earned dozens of patents during<br />

his career, and his legacy of innovation and success<br />

continues to influence the construction equipment industry.<br />

Long lived from 1921 until 2003.<br />

AEM added Long to its Construction Equipment Hall of<br />

Fame at an induction ceremony in Miami, during its annual<br />

conference. A judging board comprised of impartial representatives<br />

and experts from major industry associations<br />

elected Long to the Construction Equipment Hall of Fame.<br />

The judging panel evaluates nominees based on the extent<br />

to which they exemplify the Hall of Fame’s five guiding<br />

principles: innovation, industry contributions, leadership,<br />

corporate citizenship and<br />

sustainability.<br />

Long made his biggest<br />

impact on Case and the industry<br />

when he led the team<br />

that developed the first<br />

Pictured in front of one<br />

of the original Case<br />

320 backhoe loaders,<br />

Sue Long, Elton Long’s<br />

widow, and Sandy<br />

Mill, his son-in-law,<br />

accept an award for the<br />

Construction Equipment<br />

Hall of Fame.<br />

factory-integrated “loader/<br />

backhoe,” shipping the first unit — the Model 320 — on<br />

Feb. 27, 1957. With the backhoe loader, Long and his team<br />

created a machine that provided many advantages over the<br />

retrofit approaches of other manufacturers. The integrated<br />

backhoe loader was compact and easy to handle in a variety<br />

of applications, including jobs previously done by<br />

hand. Its integral design accommodated the different types<br />

of loading, digging and carrying requirements the machine<br />

would experience, and resulted in a manufactured product<br />

tough enough to withstand the combined stresses of various<br />

construction, agricultural and industrial applications.<br />

Upon his retirement in 1984 as Vice President of Engineering<br />

at Case, Long had received 46 patents for his<br />

work in designing and improving construction equipment,<br />

including the hydraulic “Extendahoe” extendible dipper<br />

stick that added 2.5 ft to the backhoe’s dig depth. It continues<br />

as a popular option more than 40 years later.<br />

Zap this bizarre looking symbol with your<br />

smart phone (using a QR code app) and<br />

read an entire story on how to buy a<br />

backhoe loader.<br />

10 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


groundbreaking news<br />

Terex Construction Equipment Is<br />

Now Available at Home Depot<br />

Tool Rental Centers<br />

The equation between equipment, contractor<br />

and dealer is an ever-changing formula.<br />

Over the last couple of decades, big box chains<br />

(places like Lowe’s, the Home Depot and even<br />

Wal-Mart) have infiltrated the contractor’s<br />

supply chain, using a more consumer-focused<br />

approach to tooling and now equipment<br />

rental. Today, Compact Equipment Power<br />

Equipment Centers (CPECs) are located in<br />

280 select locations of the Home Depot Tool<br />

Rental stores, supplying both consumers and<br />

professional contractors with iron. Terex just<br />

announced its PT-30 and PT-50 compact track<br />

loaders, TSR50 skid steer loaders and TC16<br />

compact excavators are available for rent at all<br />

of those CPEC locations.<br />

“This is an exciting opportunity for Terex,”<br />

says John Poag, Director of Rental, Government<br />

and Remarketing at Terex Construction.<br />

“We are pleased to have the Terex brand<br />

presented to customers alongside such wellknown,<br />

reputable brands as Compact Power<br />

Equipment Centers and the Home Depot.”<br />

According to Poag, when the partnership<br />

between the Home Depot and CPEC was<br />

formed earlier this year, Terex placed equipment<br />

in 170 Home Depot locations. Top performing<br />

locations include the Home Depot<br />

flagship store in Atlanta, as well as stores in:<br />

Nashville, Tenn.; Rock Hill, S.C.; Greenville,<br />

S.C.; Fort Worth, Texas; Tampa, Fla.; Dallas;<br />

Memphis, Tenn.; and Olive Branch, Miss.<br />

Both the Memphis and Olive Branch stores<br />

are just 30 miles from the Terex Construction<br />

operations office in Southaven, Miss.<br />

“For contractors who are trying to keep their<br />

overhead low or need some extra equipment<br />

for a big job, our goal is to provide solutions for<br />

all of their equipment needs,” says Jon Richardson,<br />

Director of Corporate Fleets at Compact<br />

Power. “This means having the right equipment,<br />

like Terex compact track loaders, skid<br />

steers and compact excavators, available when<br />

and where contractors need it. Whether a contractor<br />

is looking for a long-term rental contract<br />

or simply requires equipment for a few hours,<br />

our centers are dedicated to providing these<br />

customers with excellent service,<br />

helpful advice and versatile, affordable<br />

equipment solutions for every<br />

rental need.”<br />

Compact Power CEO Roger Braswell<br />

concluded: “Compact Power<br />

Equipment Centers, stocked with<br />

Terex compact construction equipment,<br />

are the go-to source for our<br />

customers’ rental needs. Our goal<br />

is to open an additional 300 Compact<br />

Power Equipment Centers in<br />

the future — our strategic relationship<br />

with Terex is very important in<br />

achieving this.”<br />

For more information go to www.utilitycontractoronline.com/info<br />

Do you need to rent a compact track<br />

loader for an upcoming project? Try<br />

stopping by your local Home Depot.<br />

The big box chain is now renting Terex<br />

compact equipment.<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 11


Inside Washington Special Report<br />

Grassroots Efforts and Coalition-Building Bring NUCA Values to the 112th Congress<br />

By Eben Wyman<br />

The first session of the 112th Congress began<br />

and ended with two huge legislative victories<br />

for utility and excavation contractors<br />

and American businesses around the country.<br />

Repeal of both the “1099 paperwork provision” and<br />

“3 percent withholding tax” showed what can happen<br />

when likeminded organizations work collectively to<br />

block overly short-sighted government policy.<br />

At the same time, the industry took a significant hit on<br />

public financing for water and wastewater infrastructure<br />

financing programs. Yet we were pleased with quick and<br />

substantial progress this year on legislation that would<br />

increase opportunities for public-private partnerships<br />

funded by private activity bonds. Reauthorization of the<br />

nation’s surface transportation system continued to face<br />

steep challenges, and the concept of establishing a national<br />

infrastructure bank raised some eyebrows on and<br />

off Capitol Hill. A very serious threat to traditional global<br />

positioning systems (GPS) from a telecommunications<br />

start-up mobilized several federal agencies, the construction<br />

industry and all users of GPS.<br />

All in all, it was a pretty good year for NUCA, and the<br />

Association is now gearing up for what will be an exciting<br />

and incredibly important second session, where every<br />

day into a presidential election year further reduces<br />

the chances of getting essential legislation done.<br />

1099 Repeal Starts the Year<br />

Out Right<br />

Marking a huge win for NUCA and fellow member<br />

organizations of the Small Business Coalition for Affordable<br />

Healthcare (SBCAH), Congress passed the Comprehensive<br />

1099 Taxpayer Protection and Repayment<br />

of Exchange Subsidy Overpayments Act of 2011 (HR<br />

4) in April. The legislation repealed the atrocious “1099<br />

paperwork requirement” that was buried in the massive<br />

2009 healthcare package. The mandate would have required<br />

businesses to track and report most business-tobusiness<br />

transactions above $600 to the IRS. For many<br />

businesses, this would have amounted to hundreds of<br />

new reportable transactions, involving 1099 reports sent<br />

to both the IRS and the reportable business.<br />

In a strongly worded letter to Congress, the SBCAH<br />

noted that recent studies show that “the cost of complying<br />

with the tax code is 66 percent higher for a<br />

small business as compared to a large business. Small<br />

businesses lack the compliance capabilities to track<br />

and report each new transaction, and in order to comply<br />

with this new requirement, they will have to pull<br />

capital out of the business that could be better used to<br />

reinvest in the business and create jobs.”<br />

The 1099 repeal was a big victory, but NUCA and<br />

the SBCAH are not finished with the Patient Protection<br />

and Affordable Care Act (P.L. 111-148). We will continue<br />

efforts to repeal the employer mandate, as well as<br />

various tax issues that will burden American businesses<br />

if the healthcare law continues to be implemented (depending<br />

on consideration by the Supreme Court).<br />

Withholding Tax <strong>Full</strong>y Repealed by<br />

Overwhelming Margins<br />

In one of the biggest legislative victories for NUCA in<br />

recent years, the House and Senate voted unanimously<br />

to repeal the “3 percent government withholding tax,”<br />

which was quickly signed by the President. After weeks<br />

of back and forth between the House and Senate, the<br />

House passed the Senate-amended version of the bill.<br />

As a member of the Government Withholding Relief<br />

Coalition (GWRC), NUCA and hundreds of business<br />

organizations worked for more than five years to raise<br />

awareness about the withholding tax and build support<br />

for its repeal. Scheduled to be implemented in 2012, the<br />

mandate would have required virtually all federal, state<br />

and local government entities to withhold 3 percent of<br />

payments to contractors and other organizations that<br />

provide goods and services to them. The withholding<br />

provision was already proving costly as the implementation<br />

deadline moved closer.<br />

Rep. Wally Herger (R-Calif.), a longtime champion<br />

on this issue, underscored the economic impacts that<br />

would come with repeal. “When small business owners<br />

are evaluating whether their investments will allow<br />

them to make a living, it matters if a new tax like this<br />

is going to cut off their cash flow in just over a year,”<br />

Rep. Herger said. “Repealing this detrimental mandate<br />

is an important step in making it easier for small businesses<br />

to create jobs.” NUCA appreciates the work of<br />

Rep. Herger and Rep. Earl Blumenauer (D-Ore.), who<br />

stepped up this year as the lead Democrat in this effort.<br />

Rest assured, this victory would not have been possible<br />

12 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


without the strong, steadfast support of NUCA members<br />

and chapters around the country.<br />

Infrastructure Groups Keep<br />

the Pressure On<br />

The beginning of the 112th Congress saw an influx<br />

of new lawmakers, with 16 new Senators (3 Democrats<br />

and 13 Republicans) and 93 new House lawmakers (84<br />

Republicans and 9 Democrats). In the 2010 Election, 55<br />

incumbents were voted out (53 Democrats and 2 Republicans),<br />

and strong demands to rein in government<br />

spending from newly elected Republican lawmakers<br />

seemed to dominate the national debate. Therefore, efforts<br />

to increase the federal ante for American infrastructure<br />

proved to be an increasingly hard sell.<br />

The need to invest in America’s underground environmental<br />

infrastructure is well known and documented.<br />

According to the Environmental Protection Agency<br />

(EPA), hundreds of billions of dollars are needed to repair<br />

and rebuild America’s underground environmental<br />

infrastructure, yet the lack of public dollars has kept the<br />

construction industry on the sidelines. In fact, the construction<br />

industry has been the hardest hit sector of the<br />

economic downturn and continues to face an unemployment<br />

rate well over 10 percent. Construction firms that<br />

work on public water and wastewater infrastructure projects<br />

likely face significantly higher unemployment than<br />

other sectors of the industry.<br />

Investment in water and wastewater infrastructure creates<br />

a myriad of high-paying jobs, generates significant<br />

economic activity and expands the local tax base. In fact,<br />

a recent study conducted by the Clean Water Council<br />

found that every $1 billion invested in water and wastewater<br />

infrastructure can: create up to 27,000 new jobs<br />

with average annual earnings of more than $50,000;<br />

generate a national output (i.e. demand for products and<br />

services in all industries) of up to $3.46 billion; and bring<br />

more than $1 billion in personal (spending) income.<br />

Importantly, a $1 billion investment would generate approximately<br />

$82.4 million in state and local tax revenue.<br />

EPA State Revolving Fund Programs<br />

Face Harsh Cuts in Appropriations<br />

As is increasingly the case, Congress has found it impossible<br />

in recent years to pass appropriations measures<br />

for all federal agencies. Consequently, a “continuing<br />

resolution” won out in the FY 2011 spending package<br />

for the EPA State Revolving Fund (SRF) programs. After<br />

suffering a nearly $1 billion reduction in SRF funding<br />

under the FY 2011 continuing resolution, funding<br />

for the Clean Water SRF was reduced to $1.55 billion<br />

from $2.1 billion in the original FY 2011 package, and<br />

the Drinking Water SRF was cut to $990 million, down<br />

from $1.4 billion. In total, the SRF programs received<br />

an appalling $2.5 billion, down from approximately<br />

$3.5 billion in the original FY 2011 package, reflecting<br />

a 27 percent reduction in total SRF funding.<br />

To make matters worse, FY 2012 SRF funding<br />

faces further cuts in the face of the energized fiscal<br />

hawks in the House Republican majority. In fact,<br />

House Republicans are looking to return to the FY<br />

2008 levels of the Bush Administration, providing<br />

$689 million to the Clean Water SRF and $829 million<br />

for the Drinking Water SRF in FY 2012. Obviously,<br />

NUCA recognizes the need to think outside<br />

the box on water infrastructure investment.<br />

New T&I Water Legislation Takes<br />

Comprehensive Approach<br />

Later in the year, new legislation (HR 3145) was<br />

introduced by Democrats on the House Transporta-<br />

NUCA knows Capitol Hill: CEO Bill Hillman (right)<br />

and Vice President of Government Relations Eben<br />

Wyman (center) ensure Representatives like Eric<br />

Cantor (R-VA-7th District) understand the utility<br />

construction agenda.<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 13


tion and Infrastructure Committee that would authorize $13.8<br />

billion over five years for the Clean Water SRF, $2.5 billion in<br />

grants for Combined Sewer Overflow improvements and $250<br />

million in grants to promote alternative water source projects.<br />

The bill also would establish a Clean Water Trust Fund to provide<br />

a dedicated source of revenue for wastewater infrastructure<br />

improvements, using a variety of sources to generate revenue<br />

and encourage the use of “green infrastructure” to promote water<br />

efficiency improvements. The legislation would require that<br />

projects are subject to prevailing wage requirements under the<br />

Davis-Bacon Act and that they codify the “Buy American” provisions<br />

in the Clean Water Act. While this legislation doesn’t stand<br />

much of a chance in the current political environment in the<br />

House of Representatives, NUCA supported the bill in a letter<br />

to author Rep. Tim Bishop (D-NY), stating that “while no ‘silver<br />

bullet’ exists to address these challenges, passage of HR 3145<br />

would be a big step toward job creation, economic recovery, enhanced<br />

public health and environmental protection.”<br />

Infrastructure Bank Legislation Pushed by<br />

President<br />

Around the middle of the year, the Building and Upgrading<br />

Infrastructure for Long-Term Development Act of 2011 (BUILD<br />

Act) was introduced by Sens. John Kerry (D-Mass.) and Kay Bailey<br />

Hutchinson (R-Texas). The legislation, supported by both<br />

the U.S. Chamber of Commerce and the AFL-CIO, would establish<br />

an American Infrastructure Financing Authority (AIFA),<br />

or National Infrastructure Bank, to complement existing infrastructure<br />

funding. Under the bank concept, projects for water,<br />

wastewater, transportation and energy infrastructure would be<br />

funded by loans and loan guarantees for the most significant<br />

and economically viable projects across the country. Initial “seed<br />

money” in the amount of $10 billion would be provided from<br />

the government, with the stipulation that after that the bank<br />

must become self-sustaining. The legislation restricts the payment<br />

of government funds to no more than 50 percent of a project’s<br />

costs, or just enough to attract private investment.<br />

The goal is for the bank to leverage hundreds of billions in<br />

private infrastructure funding. It would be publicly-owned but<br />

operate independently. A board of directors and chief executive<br />

officer would be appointed by the President and members of the<br />

Senate. A matter of concern to NUCA is that projects would have<br />

to be at least $100 million in size and “of national significance,”<br />

which could hurt the chances of water infrastructure projects<br />

being eligible. Like so many infrastructure bills in the current<br />

political environment, the BUILD Act faces opposition in many<br />

congressional circles, although it was included in President<br />

Obama’s “American Jobs Act,” introduced earlier this year.<br />

Opening the Door to Significant Private<br />

Investment<br />

Recognizing the need for innovative financing for water and<br />

wastewater infrastructure improvements, NUCA has increased<br />

the focus of its advocacy efforts to provide more opportunities for<br />

public-private partnerships. The use of tax exempt private activity<br />

bonds (PABs) encourage significant investment from the private<br />

sector, creating jobs and enhancing local economies while rebuilding<br />

America’s dilapidated underground water infrastructure.<br />

A proven, effective and inexpensive financing tool for water<br />

infrastructure projects is the PAB, a form of tax-exempt<br />

14 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011<br />

NUCA Chairman of the Board Ryan Schmitt (right) testified<br />

in front of the House Appropriations Subcommittee on<br />

Interior, Environment and Related Agencies in April. Here he<br />

meets with Allen West, a Republican U.S. Representative for<br />

Florida’s 22nd Congressional District.<br />

financing for state and municipal governments looking to<br />

partner with a private entity to meet a “public need” such<br />

as a wastewater treatment plant. The partnership approach<br />

makes infrastructure repair and construction more affordable<br />

for municipalities and ultimately for customers. Tax<br />

exempt bonds employ private capital in lieu of public debt<br />

and, importantly, transfer the risk and long-term debt from<br />

the public entity to the private partner. PABs also provide<br />

lower-cost financing, which translates into lower cost for<br />

the consumer.<br />

Unfortunately, federal tax law limits the amount of PAB<br />

debt that may be issued annually in a state. The volume limit<br />

or “cap” is based on the state’s population. This year the cap<br />

is $95 per resident or $277.8 million, whichever is greater.<br />

Because of the cap, the “out of sight, out of mind” nature of<br />

water infrastructure projects usually lose out to more politically<br />

attractive infrastructure projects such as roads, bridges<br />

and schools. In 2007, only 1.3 percent of all exempt facility<br />

bonds were issued to water and wastewater projects.<br />

Eliminating the state volume cap on PABs that fund water<br />

and wastewater infrastructure was last estimated by the Joint<br />

Committee on Taxation to cost the federal government $354<br />

million over 10 years, but has the potential to generate up to<br />

$50 billion over the same period.<br />

In the first session of the 112th Congress, NUCA saw remarkable<br />

progress on our PAB legislation, gaining almost as<br />

many cosponsors on House and Senate versions of the bill as<br />

we garnered during the entire previous Congress. Working<br />

closely with key lawmakers and their staffs, NUCA, as chair of<br />

the Clean Water Council (CWC) and co-chair of the Sustainable<br />

Water Infrastructure Coalition (SWIC), led the way in getting<br />

51 co-sponsors on the House bill (HR 1802) and 7 on the<br />

Senate version (S 939) in this year alone.<br />

NUCA, the CWC and SWIC continue to believe that passage<br />

of the PAB legislation will offer an effective, immediate<br />

and fiscally responsible way to kick-start struggling water infrastructure<br />

markets around the country, and we look forward<br />

to leading the way to final passage of the bill.


Highway Reauthorization Continues to<br />

Prove a Hard Sell<br />

As an active member of the Transportation Construction Coalition<br />

(TCC), NUCA works with 29 national associations and<br />

construction unions representing hundreds of thousands of individuals<br />

with a direct market interest in federal transportation<br />

programs. The TCC, of which NUCA has been an active member<br />

since its inception in 1996, works tirelessly toward a multi-year<br />

reauthorization of the nation’s surface transportation program.<br />

The TCC’s message is clear: Enough with the “kick the can<br />

down the road” approach. Pass a multi-year reauthorization<br />

bill. Congress has passed almost 10 extensions of current funding<br />

since the reauthorization was first set to expire on Oct. 1,<br />

2009. Short-term extensions only mean that states cannot execute<br />

plans to fund critical transportation projects, and highway<br />

contractors cannot plan for the future because of the continued<br />

uncertainty in the market. The highway program is scheduled<br />

for funding through March of next year, but the lack of political<br />

will for a robust bill does nothing for states and the construction<br />

industry in terms of project planning.<br />

At press time, NUCA was expecting the House Transportation<br />

and Infrastructure Committee to act on a $230 billion, sixyear<br />

bill for highways, highway safety and transit. That amount<br />

would reflect a $56 million reduction from what was included<br />

in the last six-year surface transportation bill. The House bill<br />

The association’s Washington Summit brings in NUCA<br />

troops from across the nation for a day of briefings<br />

(pictured) followed by a day of speaking to important<br />

decision-makers on Capitol Hill.<br />

is expected to consolidate duplicative programs, streamline<br />

projects and provide states with needed flexibility to address<br />

their transportation priorities, but does not address the revenue<br />

shortfall that threatens to undermine the long-term viability of<br />

our transportation system. Meanwhile in the Senate, leaders of<br />

the Senate Environment and Public Works (EPW) Committee<br />

passed a two-year, $109 billion bill that would maintain current<br />

spending levels, adjusted for inflation.<br />

LightSquared Telecom Proposal Has<br />

Construction on Edge<br />

NUCA joined dozens of national organizations that make up<br />

the Coalition to Save Our GPS, which is working collectively<br />

to block efforts by LightSquared Inc. to develop new wireless<br />

broadband services that directly threaten to interfere with<br />

frequencies used by GPS receivers. The Federal Communications<br />

Commission (FCC) conditionally allowed LightSquared<br />

to proceed at the beginning of this year pending required testing<br />

to determine the extent of the impacts that LightSquared<br />

would cause on GPS systems. So far, the testing has only<br />

confirmed this threat. The construction industry has much at<br />

stake in GPS technology, as it is used to modernize and automate<br />

construction sites, equipment and processes. The utility<br />

construction and excavation industries would be especially<br />

impacted because of their reliance on GPS in efforts to prevent<br />

damages to underground facilities during excavation.<br />

Earlier this year the House Committee on Science, Space<br />

and Technology held a hearing to review the results of recent<br />

testing on the impact of the LightSquared network on<br />

the GPS signal. Committee members expressed concern that<br />

“potential interference could disable the GPS signal used<br />

for critical U.S. government services and science missions.”<br />

While the vast majority of those involved in the debate are<br />

fully opposed to the LightSquared proposal, the issue will<br />

continue into next year.<br />

REINS Act Allows for Congressional Accountability<br />

in Federal Regulating<br />

The vast majority of business organizations commonly<br />

complain about the extent to which the Obama White<br />

House is promulgating federal regulations. The number of<br />

pages in the Federal Register (publication where all new<br />

rules must be published) jumped 18 percent just last year,<br />

and more than 4,200 regulations are now on the federal<br />

agenda. The impacts on American small businesses are<br />

more than significant.<br />

To provide needed relief to American businesses already<br />

struggling to stay afloat, Rep. Geoff Davis (R-Ky) introduced<br />

the Regulations from the Executive In Need of Scrutiny<br />

(REINS) Act (HR 10) earlier this year. It passed the<br />

House on a bi-partisan vote of 241 to 184 on Dec. 7. The<br />

legislation, which would require an up-or-down vote on every<br />

new major federal rule costing more than $100 million,<br />

will provide needed relief from federal bureaucracies that<br />

continue to overwhelm American businesses with often unnecessary<br />

regulatory red tape.<br />

In a letter of support thanking Rep. Davis for his leadership,<br />

NUCA recognized “the need for reasonable federal<br />

oversight and common-sense regulation,” but maintained<br />

that “arbitrary regulations that are not backed up by sound<br />

science are more than overly burdensome — implementation<br />

and compliance costs can serve as another nail in the<br />

coffin as American companies struggle to stay afloat.”<br />

Any reader of this column knows how valuable NUCA<br />

staff considers its dedicated network of grassroots members<br />

and chapters. We hope you will continue to stay in the<br />

game as we head into an unbelievably important election<br />

year. As always, we’re looking forward to doing our part,<br />

and we hope you will continue to support the efforts of<br />

your association in the months ahead.<br />

Eben Wyman is the Vice President of Government Relations at NUCA.<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 15


The Next Evolution<br />

in Innovation<br />

Discover 10 <strong>Utility</strong> Construction Machines and<br />

Technologies Changing the Industry<br />

By Keith Gribbins<br />

At the <strong>Utility</strong> <strong>Contractor</strong> offices, only the finest models of machines are tagged for further study.<br />

The most curious and cutting-edge brands of construction equipment (excavators, skid steers,<br />

wheel loaders and onward) are captured, researched and reviewed to inform our readers who<br />

work in the asphalt jungle every day. For the final installment of <strong>Utility</strong> <strong>Contractor</strong> in 2011, we<br />

open the gates to our exclusive equipment showcase, revealing the most innovative machines we<br />

discovered this year. Manufacturers from around the globe released next-generation product lines<br />

into the commercial construction wilds (general equipment, attachments and exclusive utility<br />

construction technologies). We can’t include every piece of great equipment, but we’ve brought<br />

the best of these new releases right here to our 2011 Innovations Showcase. Pore through the next<br />

five pages and find 10 of the most interesting pieces of equipment unleashed during the last year<br />

and pick the newest tool for your company and crews.<br />

Keith Gribbins is Managing Editor of <strong>Utility</strong> <strong>Contractor</strong>.<br />

Efficiency Is the<br />

Mission<br />

New Case F Series Wheel Loaders Boast<br />

17 Percent Greater Fuel Savings<br />

Case is a clever company. It’s taken the opportunity to meet<br />

new diesel engine regulations (Tier 4 Interim emissions standards)<br />

to make its machines more powerful, comfortable and<br />

efficient. In early 2011, Case Construction Equipment introduced<br />

three new F Series wheel loader models with three new nextgen<br />

engines. The new machines provide faster acceleration,<br />

quicker cycle times and higher travel speeds while delivering as<br />

much as 17 percent greater fuel efficiency. The F Series wheel<br />

loaders meet contractors’ needs while delivering clean green<br />

benefits demanded by municipal and state governments.<br />

The Case 721F, 821F and 921F wheel loaders use proven<br />

selective catalytic reduction (SCR) technology to meet<br />

16 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011<br />

Tier 4 Interim emissions standards while also delivering increased<br />

power and improved fuel efficiency. “With the SCR<br />

technology in our Case F Series wheel loaders, Case has<br />

made what was already the industry’s most fuel-efficient<br />

line of wheel loaders even more fuel efficient,” says Tim<br />

O’Brien, Marketing Manager at Case Construction Equipment.<br />

“At the same time, the Case F Series engines are<br />

more powerful and respond faster.”<br />

The Case 721F, 821F and 921F wheel loaders feature a<br />

6.7-liter Tier 4 Interim-certified engine, rated at 179, 211<br />

and 242 hp (133, 158 and 180 kW), respectively. Contact:<br />

www.casece.com.


Rearmed<br />

JCB’s New Generation of One-Armed Skid<br />

Steers and Track Loaders<br />

In 1993, JCB introduced the industry’s first mono-boom<br />

skid steer, a machine based upon the same principles as a<br />

telescopic handler. Today, the company’s New Generation<br />

skid steers and track loaders embody this same innovative<br />

spirit while taking performance and safety to a higher level<br />

(a true NUCA mission statement). Available in a range of<br />

models featuring radial or vertical lift and compatible with<br />

more than 30 attachment families, these skid steers and<br />

track loaders are safe, durable, comfortable and simple to<br />

use for operators at all skill levels.<br />

JCB’s unique “PowerBoom” design provides an unobstructed<br />

rear view and best-in-class visibility. This design<br />

also gives operators access via the industry’s only sideentry<br />

door, clear of the attachment and loader arm. Redesigned<br />

control panels are located in the panels at the top<br />

of the cab within the operator’s line of sight. A 17 percent<br />

larger cab, multifunction joystick controls and an optional<br />

heated air-suspension seat improve operator comfort.<br />

A simplified design has decreased the total number of parts<br />

by 38 percent, and the company claims these machines use<br />

16 percent less fuel for significant savings over time. Contact:<br />

www.jcbamericas.com.<br />

Operator Assistance<br />

John Deere’s G-Series Excavators Designed<br />

with <strong>Contractor</strong> Collaborations<br />

Nobody knows machines like the operators in the field. So<br />

John Deere figured it would bring the professional operator into<br />

the design process, launching three new G-Series excavators<br />

featuring IT4-certified engines, more power and cab improvements<br />

to increase visibility — all with customer input. The new<br />

series introduction includes the 250G, 290G and 350G, ranging<br />

from 191 to 299 net hp. The company incorporated a whole<br />

host of new technologies and creature features on these three<br />

models that actually came from customers (from increasing<br />

power and hydraulic flow to reconfiguring the cab).<br />

Customer John Gleim, one of a group of excavator owners<br />

who has shared his needs and opinions with Deere for many<br />

years, noticed a power gap between excavator models that<br />

wasn’t apparent during conventional digging. It was apparent in<br />

another application, craning trench boxes. “They won’t use as<br />

big a box as is really needed, and pretty soon safety is compromised.<br />

We can’t have that — safety is critical to our day-to-day<br />

operations. I talked to Deere about adding more stability and<br />

power. They not only listened, they responded,” Gleim says.<br />

Contact: www.deere.com.<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 17


Polarizing Solutions<br />

Vermeer Unveils New Magnetic<br />

Technology for Hard-Core Rock Drilling<br />

Equipped with the rock-focused MAGnum drilling system,<br />

the D36x50R Series II horizontal directional drill is a uniquely<br />

amazing piece of equipment. Using rapidly rotating magnets<br />

of alternating polarity within the carriage assembly, a high<br />

frequency percussive action is generated to fracture and effectively<br />

bore through tough formations, including solid<br />

rock. This hammer technology<br />

was developed<br />

in collaboration<br />

with FlexiDRILL,<br />

a New Zealandbased<br />

engineering<br />

company,<br />

and is licensed for<br />

exclusive distribution<br />

by Vermeer.<br />

Not a dedicated<br />

rock drill, the MAGnum<br />

system can be<br />

disengaged by the flip<br />

of the switch and the<br />

D36x50R Series II will<br />

perform as a conventional<br />

HDD drill. This versatility<br />

qualifies the drill for a<br />

range of ground conditions to help boost overall utilization.<br />

The D36x50DR Series II also comes in a rod-in-rod design<br />

configuration (with dual threaded makeup). With a rated<br />

rotational torque of 1,500 ft-lb (2033.7 Nm), the inner rod<br />

powers the downhole tri-cone as the outer rod provides<br />

steering and backreaming rotation. The dual threaded rod<br />

design also enables drilling fluid to course between the inner<br />

and outer rod, as well as through the inner rod, to help<br />

meet the volume requirements needed for efficient removal<br />

of the cuttings. Contact:<br />

www.vermeer.com.<br />

18 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011<br />

Designed to Adapt<br />

Wacker Neuson Introduces New<br />

Vertical Digging System on Mini<br />

Excavators<br />

Flexibility is the mantra of compact machinery,<br />

but Wacker Neuson is pushing the flexibility formula<br />

further with the introduction of its Vertical Digging<br />

System (VDS). An option on select compact<br />

excavators in 2011, the VDS compensates for<br />

height differences on uneven terrain and quickly<br />

sets the operator in an upright position, greatly<br />

increasing productivity. This innovative system<br />

enables operators to tilt the cab and boom of the<br />

excavator by up to 15 degrees with the push of a<br />

button, allowing the operator to compensate for<br />

slopes up to 27 percent.<br />

The excavator can then be used to dig more<br />

precisely in a vertical position, which significantly<br />

speeds up excavation and backfilling work, resulting<br />

in time and material savings of up to 25 percent.<br />

Operators can remain in an upright position,<br />

making it easier and more comfortable to operate.<br />

Increased stability is a further benefit, creating<br />

a safer environment for operators and across the<br />

construction site as a whole. Wacker Neuson is the<br />

only excavator manufacturer in the industry to offer<br />

the unique Vertical Digging System. The jobsite<br />

uses for the VDS are endless, but popular applications<br />

include digging on an embankment, straddling<br />

concrete curbs and digging in narrow areas.<br />

Contact: www.wackerneuson.com.


Road Runners<br />

Caterpillar Enters the Vocational<br />

Truck Market with the CT660<br />

Caterpillar makes just about everything.<br />

It’s the biggest manufacturer of earth moving<br />

equipment in the world, engineering skid<br />

steers, wheel loaders, mining trucks, excavators,<br />

backhoes, engines and everything in between.<br />

Now you can add vocational trucks to<br />

that expansive list. To a large group of press<br />

corps before CONEXPO-CON/AGG in March,<br />

Caterpillar released the Cat CT660, the first<br />

model in a full line of Class 8 vocational trucks<br />

designed to work as transit mixers, refuse haulers,<br />

dump trucks and in any application requiring<br />

a heavy-duty truck with reliability, durability<br />

and low cost of ownership.<br />

The project has been a long term partnership<br />

with Navistar, one of the major vocational truck<br />

leaders in the world. The synergy has yielded<br />

an awesome addition to the Class 8 market. Engine<br />

options for the CT660 include the Cat CT11,<br />

CT13 and CT15 — with displacements of 11.1,<br />

12.5 and 15.2 liters — providing horsepower ratings<br />

from 330 to 550 and peak torque ratings<br />

from 1,450 to 1,850 lb-ft. A notable transmission<br />

option for the CT660 is the Cat CX31 automatic,<br />

a reliable, proven performer since 2004 in<br />

global vocational applications. The CX31, with<br />

six forward speeds and one reverse, is built to<br />

complement the torque output of Cat CT Series<br />

engines. Contact: www.DriveCat.com.<br />

For more information go to www.utilitycontractoronline.com/info<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 19


The Heat Is On<br />

Serious Thermal Products Introduces Fastest<br />

Ground-Thawing Machine<br />

Excavation in the cold is a common concern for year-round and<br />

northern-located utility contractors. When it comes to winter underground<br />

installations, there’s no better way to heat up frozen tundra<br />

than with the Serious Toaster ground-thawing machine, from<br />

Serious Thermal Products Ltd. Using patented infrared technology,<br />

the Toaster thaws frozen ground more than three times faster than<br />

similar competitive units, says the company, and it is the only CSAapproved<br />

product of its kind on the market.<br />

Ideal for underground installations, each Toaster thaws up to<br />

1.6 in. deep per hour in a 2-ft-by-10-ft area. Multiple units can be<br />

placed together in a series or any other configuration to accommodate<br />

larger applications. The Toasters are controlled by a solid-state<br />

electronic system, and they are fueled by clean-burning propane,<br />

making them an environmentally friendly choice. Furthermore, they<br />

do not produce open flames, so they can be safely placed next to<br />

buildings and utility pedestals. Weighing only 345 lbs each, Toasters<br />

fit in standard pickup beds and can be easily moved by two people.<br />

Contact: 403-671-7393 or www.serioustoaster.com.<br />

Roadwork Made Easier<br />

Plate Locks Offers a Cost-Effective Alternative to Using Cold-Mix Around Road Plates<br />

20 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011<br />

Installing and removing cold patch asphalt around road<br />

plates has always been time consuming, hazardous and labor<br />

intensive. Fortunately today, it’s no longer necessary. Plate<br />

Locks, winner of the Transportation Development Foundation<br />

Award and Roadway Work Zone Safety Awareness Award, has<br />

developed a new, inventive, cost-effective and reusable road<br />

plate securing system that does away with cold-mix for road<br />

plates and actually marks, identifies and secures them.<br />

Unlike cold patch, which depends entirely on adhesion to<br />

the road, Plate Locks is actually fastened to the road, preventing<br />

any sliding and shifting of the plate. Plate Locks is made<br />

from a recyclable, safety orange polypropylene thermoplastic.<br />

It comes in 5-ft lengths and can be cut to fit any sized plate or<br />

configuration of multiple plates. You can move them from job<br />

to job and it pays for itself after one or two uses vs. cold patch<br />

asphalt material, says the company. Plate Locks is also environmentally<br />

safe, unlike cold mix. It is reusable, has no off gassing<br />

of volatile organic compounds and is recyclable. There are<br />

also no harmful chemicals that can contaminate storm drains.<br />

Contact: 541-821-3622 or www.platelocks.com.


Economic Excavation<br />

The Ditch Witch FX25 Is a Nice Price-Conscious Vacuum Excavator<br />

Money and size are two big factors in the purchasing process. So when the Ditch Witch organization announced the release of<br />

the FX25 vacuum excavation system, they wanted to release an economical, but value-added solution for contractors needing<br />

the essential services of a vacuum excavator. Equipped with a 500-gal spoils tank, the FX25 is the direct result of customer requests<br />

for a low-cost vac system that can perform a wide range of cleanup and soft excavation tasks, including potholing, valve<br />

box and utility vault cleanout, storm drain cleaning, exposing buried utility lines, HDD site cleanup and everything in between.<br />

The basic FX25 utilizes several components common with the FX30 for comparable performance but with the added benefit<br />

of the simplicity of a gasoline engine. And, like other members of the Ditch Witch vacuum excavation product family,<br />

it can be configured and customized with numerous options, including an 80- or<br />

200-gal water system with 3,000-psi water pressure. The economical benefits<br />

of the FX25 extend to both its purchase price and general maintenance.<br />

The FX25’s large-capacity, single-element, three-micron,<br />

washable vacuum filter is easy to maintain, extending the life of the<br />

blower when properly serviced. All of the FX25’s functions<br />

are run by a single, open-access power pack, adding<br />

to the serviceability and simplicity of the unit.<br />

Contact: www.ditchwitch.com.<br />

Super Sucker<br />

The Vacuworx MC3 Mini Lifter Uses Air to Pick<br />

and Place Project Materials<br />

It takes dexterity to safely piece together a construction site.<br />

It’s a puzzle of moving pipes, concrete slabs, large lumber and<br />

working crews. It’s in this complex environment that the Vacuworx<br />

MC3 Mini Lifter was designed to excel. Fitted to a mini excavator,<br />

the Mini Lifter uses material-specific vacuum pads that<br />

can suction up and move all types of construction supplies — all<br />

diameters of coated and non-coated pipe, concrete slabs, steel<br />

plates, steel tanks, polished stone, glass, granite and landscape<br />

rocks. Only the pads must be changed to switch to different pipe<br />

diameters or other materials. It’s ideal for in-plant or in-field applications,<br />

making the versatile Vacuworx MC3 Mini Lifter a compact<br />

material-handling attachment capable of completing a wide<br />

range of utility construction-related jobs. Contact: 918-259-3050<br />

or www.vacuworx.com.<br />

For more information go to www.utilitycontractoronline.com/info<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 21


A Well Balanced Backhoe Loader<br />

Enhance Productivity and Promote Safety with These Optional<br />

Backhoe Loader Technologies<br />

By Norman Blair<br />

While most owners or operators would agree<br />

that backhoe loaders are sometimes a primary<br />

machine and sometimes a secondary machine<br />

on the jobsite, all would agree that backhoes are<br />

a necessity for utility work. What some contractors might not<br />

realize is that equipment and features on some backhoes offered<br />

by equipment manufacturers on the market today may potentially<br />

enhance productivity and promote safety on the jobsite. Some<br />

would say that a backhoe is just a backhoe depending on weight<br />

class, horsepower, dig depth and lift capacity, but the truth is<br />

there are many things that separate manufacturers of backhoes<br />

when it comes to features or options that contractors should take<br />

into consideration when purchasing their next machine.<br />

Transmissions<br />

Some backhoe loader manufacturers offer a synchromesh<br />

transmission with a power shuttle as standard equipment. That<br />

means there is a four-speed shifter on the floor to the right of<br />

the steering wheel with a forward-neutral-reverse (FNR) power<br />

shuttle shifter on the left hand side of the steering wheel. With<br />

this transmission type, the operator has to shift with one hand<br />

and change machine direction with the other. There are also<br />

power-shift and auto-shift transmissions. These transmissions<br />

are usually optional. With this transmission, the operator only<br />

uses one hand to shift and change direction of the machine.<br />

Today, power-shift transmissions come in two different<br />

packages — one that uses mechanical synchronizers internal<br />

to the transmission to shift gears and one that uses hydraulic<br />

clutches internal to the transmission. Hydraulic clutches shift<br />

smoother and auto-shift transmissions allow the operator to<br />

shift either automatically or by hand.<br />

Mechanical Front Wheel Drive (MFWD)<br />

An owner or operator has much to consider when deciding<br />

if his backhoe should include mechanical front-wheel drive<br />

(MFWD). With MFWD, the operator has more control over<br />

the machine in adverse conditions both on flat surfaces<br />

and slopes. Some contractors opt for two-wheel drive, not<br />

feeling the need for MFWD because their machines are used<br />

on roads and other hard surfaces the majority of the time.<br />

It’s important to know that when a dealer is looking at a<br />

trade-in from a customer that MFWD machines are more<br />

desirable for resale and therefore bring a higher trade-in<br />

value. In addition to the economic benefit, MFWD assists<br />

the machine in performance. The operator can use MFWD<br />

to get more material at quicker cycle times into the loader<br />

of the backhoe.<br />

Ride Control<br />

Another feature on backhoes to consider is ride control.<br />

Ride control cushions the machine from bounce and aids the<br />

operator in material handling and day-to-day driving. Some<br />

contractors may not consider this feature because they do<br />

not road their machine that much; however, when carrying<br />

material (load and carry) in the loader bucket on the jobsite to<br />

load a truck, material is often spilled from the bucket because<br />

of bounce. Ride control has a dual advantage for both roading<br />

the machine and keeping material in the bucket while loadand-carry<br />

operations are being performed. With that being<br />

said, the operator can move more material and has more<br />

control over the machine.<br />

Norman Blair is a Backhoe Product Consultant with John Deere.<br />

22 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


For more information go to www.utilitycontractoronline.com/info


Eight Ways to<br />

Protect Your<br />

Construction<br />

Company<br />

Make Sure Your Business Decisions<br />

Match Up with Proper Legal Compliance<br />

By Paul Tonella and Benjamin Greenberg<br />

All contractors are facing difficult times. While minor<br />

mistakes can doom a bid in this economy of<br />

increased competition for scarcer work, the smart<br />

contractor will pay as much attention to his or her<br />

business practices as to bidding and construction methods.<br />

Following is a list of legal topics regarding the other aspect of<br />

construction — sound business legal strategy.<br />

1. Choose the Right Entity<br />

Limiting your personal liability is critical. All forms of business<br />

organizations have their strengths and weaknesses. A sole proprietorship<br />

is the least complex and least expensive, but it has the<br />

most risk of liability for the owner. For an owner also desirous of<br />

protecting personal assets, it can be a dangerous choice. For this<br />

reason we always recommend setting up a business in a limited<br />

liability form.<br />

LLC’s and Corporations are more complex and cost additional<br />

administrative time and fees. The single most important characteristic<br />

of these limited liability entities is their shield of liability for the<br />

owners. Provided an owner observes the formalities required by law,<br />

this shield should not be able to be breached, allowing the owner<br />

to safely accumulate wealth outside of the business. Regardless of<br />

the form — observing good corporate practices, regular meetings<br />

of directors or managers, keeping detailed minutes of meetings and<br />

otherwise — complying with the formalities will help keep your<br />

limited liability shield intact.<br />

As companies grow and desire to expand their capacity for bidding<br />

and winning either larger jobs or jobs with specific technical<br />

issues, they will be faced with the choice of entering into joint ventures<br />

with other entities. Unless created as an LLC, a joint venture<br />

relationship will be treated as a partnership under state law. Partnerships<br />

are easy to form and maintain under Washington law (at<br />

least) and do not even require a written agreement; however, all<br />

partners are typically liable for the obligations incurred by the partnership.<br />

Therefore a careful understanding of the bid requirements,<br />

24 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011<br />

each party’s insurance and bonding coverage and capacity and balance<br />

sheet health is important in answering the question — should<br />

I be a partner in a partnership or a member of an LLC?<br />

2. Separate Ownership of Operations<br />

A company should consider forming separate business entities<br />

(using the guidance above for each entity) for operations, holding<br />

equipment and, if applicable, office ownership. An operational<br />

entity should, among other things, handle the business of entering<br />

into contracts with owners and the various subcontractors, suppliers<br />

and other third party vendors. A separate entity should buy<br />

most or all equipment and lease the equipment to the operational<br />

entity. Finally, any building or office space that is purchased should<br />

be owned by an entity separate from the previous agreements and<br />

leased to the operational entity. An important advantage of this<br />

practice occurs in the case of a judgment being rendered against<br />

the operational entity. In this circumstance, if properly organized<br />

and operated, the assets of the other entities cannot be touched.<br />

3. Properly Document Infusions of Cash<br />

Owners generally fund working capital needs of their companies<br />

through two ways — by making capital contributions or through<br />

lending. There are large advantages to using the latter. In case the<br />

company fails, the owner may have an interest in the company assets<br />

ahead of other creditors. However, in order for this to occur, any<br />

loan should be properly documented at the time it is made, and in<br />

order to obtain priority over the business’ other general unsecured<br />

creditors , it should be secured by company assets through a written<br />

security agreement and proper state filings and recordings.<br />

4. Work Toward Consistency in Your<br />

Contracts<br />

A company will enter into numerous agreements. A few examples<br />

are: construction contracts, loan agreements, employment<br />

agreements and vendor agreements. Consistency in clauses across


these agreements will reduce your review time, your questions and<br />

the attorney’s fees you incur clarifying the meaning of the various<br />

standard clauses. A perfect example is a dispute resolution clause,<br />

as it will likely be included in each of these agreements. A company<br />

should strive for consistency and compatibility for these agreements<br />

so to ensure predictability and efficiency and to reduce the amount<br />

of legal fees incurred for decoding the legal impact of such clauses.<br />

5. Cultivate and Protect Your Company<br />

Intellectual Property (IP)<br />

Company trade secrets are protectable IP, and comprise<br />

information that: (i) is not publicly available; (ii) provides a<br />

commercial advantage; and (iii) subject to reasonable efforts to<br />

maintain secrecy. These can include client lists, production or<br />

construction methods, production formulas, marketing strategies,<br />

pricing strategies and other commercially sensitive materials.<br />

Protect you company’s IP with written confidentiality and<br />

intellectual property agreements and safe practices for ensuring<br />

such information is not accessible by non-essential personnel.<br />

6. Comply with All <strong>Contractor</strong><br />

Licensing Requirements<br />

When performing work that requires licensing, ensure that your<br />

company obtains all proper licenses. Each state treats licensing infractions<br />

differently, but an unlicensed contractor is always at risk.<br />

For example, Washington and California are both very strict about<br />

licensing and limit recovery of claims by unlicensed contractors.<br />

A number of states also impose both civil monetary penalties and<br />

criminal sanctions for licensing violations. Additionally, some<br />

states declare any contracts with unlicensed contractors null and<br />

void and/or allow disgorgement of any previous payments to unlicensed<br />

contractors. Do not underestimate the consequences of<br />

improper licensing.<br />

Similarly, contractors should also be cognizant of any special<br />

licensing requirements for performing work on tribal land. There<br />

has been a construction boom nationally with respect to casinos<br />

and other establishments for Indian tribes on Indian tribal land.<br />

Thus, licensing issues on tribal land have become a relevant concern.<br />

To commence construction, tribes often require special business<br />

and building permits, which are granted by the tribe.<br />

7. Properly Classifying Workers as Either<br />

Employees or Independent <strong>Contractor</strong>s<br />

The proper classification of a worker has implications in a number<br />

of areas including: wages and hours, unemployment and worker’s<br />

compensation and tax liability. To make matters worse, a worker<br />

may be considered an independent contractor for tax purposes, but<br />

an employee for unemployment purposes. Generally, independent<br />

contractors receive far fewer protections under state and federal law,<br />

and organizations have less obligations and liabilities toward them.<br />

However, the federal government and a number of states are beginning<br />

to give greater attention to misclassification of workers, which<br />

can result in fines, penalties, stop work orders and back taxes.<br />

Learning to assess relative risk is crucial in<br />

protecting a utility contractor’s business. Take<br />

a photo of this QR code with your smart phone<br />

and read an article specifically on protecting<br />

yourself from uninsurable risks.<br />

The determination of<br />

whether a worker is an independent<br />

contractor or an<br />

employee is very fact specific,<br />

and may vary depending<br />

on the agency and state.<br />

But, at the most basic level,<br />

a worker may be an independent<br />

contractor when<br />

he controls the means and<br />

methods by which the work<br />

is done. Courts also consider<br />

factors such as whether<br />

or not they are paid the<br />

same weekly wage and own<br />

their own tools. Moreover,<br />

the employer bears the burden<br />

of proving the existence<br />

of an independent contractor<br />

relationship. Given the<br />

Breaking up your business can help<br />

protect it. A company should consider<br />

forming separate business entities for<br />

operations, holding equipment and, if<br />

applicable, even office ownership.<br />

increased scrutiny and penalties for misclassification of workers, it<br />

is important that organizations carefully analyze the employment<br />

status of each worker under applicable federal and state law.<br />

8. Business Continuity Plans<br />

An important consideration for any company is a well formulated<br />

business continuity plan. Many closely held companies are unprepared<br />

for business continuity after the founder or major shareholder<br />

retires, becomes disabled or is deceased. Thus, contractors<br />

should consider how to hold on to key employees and develop<br />

plans for operations in the event that something happens to the<br />

owner or a key person. With regard to keeping employees, contractors<br />

may want to consider various incentives, such Employee Stock<br />

Ownership Plans (ESOPs), or other mechanisms to give employees<br />

a stake in the business. A business continuity plan should also consider<br />

other risks and interruptions that can negatively affect business,<br />

such as IT failures, supplier default and economic slowdown.<br />

Preparation in event of unforeseen circumstances is important to<br />

ensuring that business can continue to run smoothly.<br />

Conclusion<br />

In this volatile market, it has become increasingly important<br />

that contractors exercise smart business legal judgment to help<br />

ensure continued success. Accordingly, this article sheds light on<br />

a number of topics that contractors should consider when making<br />

future business decisions. The foregoing is provided for informational<br />

purposes only and should not be construed as legal<br />

advice. <strong>Contractor</strong>s are encouraged to consult with an attorney<br />

of their choice to discuss their own individual circumstances.<br />

Paul Tonella is a Partner at the law firm of Oles Morrison Rinker & Baker,<br />

which represents hundreds of closely held companies in their corporate<br />

management, succession planning, tax, real property and general business<br />

needs. Contact: Tonella@OLES.com or 206-623-3427<br />

Firm associate Benjamin Greenberg earned his law degree from<br />

Boston College Law School. During law school, he was a Staff Writer<br />

for Boston College Law Review and was Co-President of the Criminal<br />

Justice La Project. Contact: Greenberg@OLES.com or 206-623-3427<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 25


Then There<br />

Was Light<br />

<strong>Utility</strong> <strong>Contractor</strong>s Need Not<br />

Fear the Dim Prospect of Being<br />

Left in the Dark<br />

By Todd Razor<br />

Securing reliable light sources to illuminate nighttime construction<br />

projects is imperative for utility contractors whose work requires<br />

them to see in the dark. Light towers allow contractors to continue<br />

working around the clock, and potentially cut in half the number<br />

of days or weeks it would typically take to successfully complete any given<br />

project, while providing well-lit areas that promote safe and productive work<br />

environments. The proper deployment of light towers in the field, whether it<br />

consists of a bridge, a trench, a sidewalk or a street, can also help contractors<br />

meet strict deadlines set by those who employ them.<br />

Going Up?<br />

Though light towers are designed to illuminate large areas,<br />

says Robert Walsh, Product Manager of Portable Energy at<br />

Chicago Pneumatic Construction Equipment, many contractors<br />

don’t take full advantage of those capabilities. Instead, they<br />

place work crews in an atmosphere that resembles a poorly lit<br />

living room rather than an overcast day.<br />

“Many times you will find that operators don’t fully extend<br />

the light tower mast,” Walsh says. “It is a level of comfort<br />

issue. They put the light tower close to what they are working<br />

on, because they think that may be better for them. But you<br />

get more coverage the higher up it goes.”<br />

Ideally, contractors should space out light towers about<br />

every 100 ft on a jobsite, which helps to increase safety and<br />

boost productivity by minimizing blind spots. Having the<br />

correct number of fully extended and appropriately spaced<br />

light towers on jobsites also leads to greater efficiency as<br />

workers don’t have to pause and reposition the machines.<br />

“With a light tower, you are still going to have some pretty<br />

good shadows on a jobsite,” Walsh says. “From a safety<br />

standpoint, you will want to make sure you have not just<br />

one tower, but a series of light towers around workers in<br />

order to minimize those shadows and provide 360 degrees of<br />

illumination on whatever application they are working on.”<br />

26 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


Stabilization legs also help operators get the most<br />

maneuverability out of light towers because the added<br />

support allows masts to be extended horizontally to shine<br />

light on the underside of bridges, for example.<br />

Power Hours<br />

Fuel efficiencies and run times are also important features<br />

for utility contractors who depend on light towers when<br />

working on tight deadlines, especially given that the machines<br />

must be allowed to cool before they may be refueled safely.<br />

Walsh, who says paying attention to fuel capacities when<br />

choosing a light tower can help contractors save minutes,<br />

even hours, as they don’t have to stop as often to refuel, also<br />

noted that a full 30-gal tank of fuel should power about 60<br />

to 70 hours of operation time between refills.<br />

Output power is another common area that contractors tend<br />

to gloss over when picking out a light tower. A standard 60-Hz<br />

light tower with a 20-amp duplex outlet, for instance, can be<br />

used to conveniently power small power tools. Yet Walsh says<br />

Chicago Pneumatic offers power sockets as an option on its<br />

120-V light towers because some contractors prefer to avoid<br />

the headaches associated with overusing the outlets.<br />

“Operators will sometimes run each of those outlets to a<br />

drop cord and plug six things into it, including additional<br />

drop cords,” Walsh says. “They end up blowing a fuse or<br />

blowing a circuit. Some customers prefer light towers<br />

without sockets in order to minimize that risk.”<br />

Got a Light?<br />

When water mains burst, gas lines leak or electrical<br />

power goes out, utility contractors typically don’t have<br />

the luxury of waiting until the sun rises to address those<br />

issues along public right-of-ways. In addition to procuring<br />

reliable machines to power through non-daylight hours, it is<br />

important for contractors to know where to find light towers<br />

on short notice from sources such as local rental stores or<br />

equipment dealers.<br />

“Their immediate concern is how quickly they can get<br />

one,” says Walsh, adding that contractors are not typically<br />

given a month’s advance warning when they<br />

need a light tower to successfully complete<br />

time-sensitive projects. Faced with closing<br />

bridges, roads or highways for extended<br />

periods of time, and potentially disrupting<br />

pedestrian and vehicular traffic patterns<br />

along major thoroughfares, governments<br />

and municipalities have been known<br />

to offer financial incentives, such<br />

as bonuses, to contractors who<br />

can restore utilities ahead of<br />

schedule.<br />

“These types of projects are<br />

typically done at night, and light<br />

towers allow crews to work straight<br />

through the night,” Walsh says. He says<br />

that other than having a handle on where<br />

to obtain light towers in a timely manner, it<br />

is important for operators to understand how to utilize the<br />

machines to their fullest potential.<br />

Right Lights<br />

Equipment failure is a dim prospect for utility contractors<br />

who rely on dependable sources of light to brighten roads,<br />

highways, bridges, trenches and other jobsites. <strong>Contractor</strong>s<br />

looking for the most reliable sources of electric-powered<br />

illumination must also think about how quickly and easily<br />

it may be to pick up replacement parts in the event of a<br />

malfunction.<br />

In addition to avoiding knock-off brand engines and<br />

alternators, for which parts may be more difficult to acquire<br />

on the fly, contractors should consider how the potential<br />

inability to obtain parts in a hurry could affect the cost to<br />

rent or own light towers.<br />

“Generic engines and alternators may present an<br />

attractive option to contractors trying to save money on<br />

the front end,” Walsh says. “But if those less well-known<br />

machines falter, leaving work crews in the dark until<br />

repairs can be made, then the overall cost of ownership<br />

tends to increase dramatically.”<br />

In addition to performing regularly scheduled oil and<br />

filter changes, which helps to increase the lifespan of light<br />

tower engines, would-be owners should think about buying<br />

light towers that feature wide service doors and electrical<br />

cubicles, both of which allow for easy maintenance.<br />

“Those tasks shouldn’t be overlooked,” Walsh says of<br />

preventive maintenance. He says the majority of rental<br />

companies tend to deal with both the preventive maintenance<br />

and mechanical issues on the equipment they offer. Suppliers<br />

usually take care of the rest, he says. “Regardless of which<br />

brand of light tower that contractors choose, taking the time to<br />

consider the overall performance, portability and functionality<br />

of light sources will pay off at the end of the day,” Walsh says.<br />

Todd Razor is a technical writer for Performance Marketing, based<br />

in Des Moines, Iowa.<br />

The Illumination Engineering Society (IES) is the organization that sets the<br />

standards for determining safe and proper levels of illumination. The IES<br />

requires that a general construction site have at least 10 footcandles of<br />

illumination, while 1 to 5 footcandles are sufficient for a parking area.<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 27


N<br />

safety management<br />

Prevent Deadly<br />

Struck-By Accidents<br />

By George Kennedy<br />

A<br />

“struck-by” accident occurs when someone is struck<br />

by a vehicle, equipment, materials or other objects.<br />

Struck-by accidents are among the four leading<br />

causes of workplace fatalities. In 2010, 409 fatalities<br />

— nine percent of all workplace fatalities — were caused<br />

by workers being struck. Of the 74,950 nonfatal construction<br />

incidents that resulted in days away from work, 49.3 percent<br />

were caused by contact with objects.<br />

One quarter of struck-by vehicle deaths occur in<br />

construction — more than in any other industry. <strong>Utility</strong><br />

contractors are often exposed to a struck-by danger<br />

when lifting and moving pipe, cable and other materials<br />

during excavation.<br />

28 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011<br />

One quarter of struck-by vehicle deaths occur in construction —<br />

more than in any other industry. According to OSHA, approximately<br />

75 percent of all struck-by fatalities involve heavy<br />

equipment, such as trucks, loaders, excavators, backhoes and<br />

front-end loaders. Other struck-by incidents are caused by falling<br />

and flying objects or the movement of suspended loads. A<br />

falling or rolling hazard is created by spoil piles, tools, pumps<br />

and pipe or cable found near the edge of trenching and excavation<br />

work. Workers are also exposed to a struck-by danger<br />

when lifting and moving pipe, cable and other materials into<br />

the excavation.<br />

Preventing Struck-By Incidents<br />

Struck-by incidents can be prevented with little expense.<br />

The key to success is making employees aware of the situations<br />

where an incident could occur. Start with work zone safety<br />

training. Workers often take for granted that drivers and operators<br />

are going to see and avoid them. Yet more construction<br />

workers are struck by construction vehicles and machinery<br />

than by motorists. So in any work construction area, remind<br />

crews to be aware of their surroundings and to not place themselves<br />

in dangerous positions. Instruct them to make themselves<br />

known and visible to drivers and equipment operators.<br />

They should wear high-visibility clothing and never turn their<br />

backs on vehicles or equipment in motion.<br />

When work must be performed in or near traffic lanes, contractors<br />

should be sure to set up a safe work zone in accordance<br />

with the Manual of Uniform Traffic Control Devices (MUTCD).<br />

Install traffic signs and barricades. Use flaggers to control the<br />

flow of traffic where necessary. If flaggers are assigned, they<br />

should have flagger training and wear the appropriate high<br />

visibility clothing. In work zones where trucks and equipment<br />

are moving around, crew members should be required<br />

to wear high-visibility clothing. They should be instructed not<br />

to approach vehicles or equipment from a blind spot, and they<br />

should always get the operator’s attention and make eye contact<br />

before getting close to the vehicle or equipment.<br />

Equipment manufacturers have conducted research to identify<br />

the blind spots around their vehicles and heavy machinery.<br />

Check with the manufacturers of your vehicles and equipment<br />

to see what information is available and share that information<br />

with employees. If you cannot find the information, perform<br />

simple demonstrations using your own equipment. Of course,


safety management<br />

the equipment should be off when performing such a demo.<br />

For a basic understanding of what should be considered,<br />

visit this website: www.dmp.wa.gov.au/documents/Pamphlets/<br />

MSH_P_WorkingNearLargeMobileEquipment.pdf.<br />

Backing Up<br />

To warn other workers when a vehicle is in reverse, OSHA<br />

requires operational backup alarms or a spotter. According<br />

to the North Carolina Department of Labor, even if a vehicle<br />

is equipped with backup alarms, the best way to prevent vehicles<br />

from backing over employees is to have a spotter. With<br />

so many alarms on jobsites, employees start to ignore them.<br />

An assigned spotter must understand that a spotter’s main responsibility<br />

is to look out for him or herself and everyone in<br />

the area. The spotter should be instructed to never leave the<br />

driver’s sight without notifying the operator to stop and should<br />

establish consistent hand signals with the operator, signaling<br />

from an area where the driver can see the spotter. Operators<br />

should also be instructed to stop the vehicle or equipment if<br />

they lose sight of the spotter. Operators should inspect their<br />

vehicles/equipment regularly to ensure that:<br />

• Backup alarms and horns are working,<br />

• Rear-view mirrors are not broken and are properly adjusted,<br />

• Brakes are working, and<br />

• All glass surrounding the cab is clean and not broken.<br />

As we move into the future, more vehicles and machinery<br />

will be equipped or retrofitted with backup sensors and<br />

rearview wireless cameras. Some excavators are equipped<br />

with swing/motion alarms, a relatively new feature. While not<br />

required by OSHA, they are a good idea and can be retrofitted<br />

to older equipment. Some issues still need to be worked out<br />

and changes are occurring every day. OSHA is currently considering<br />

whether to require such devices. More information<br />

about sensors and cameras can be found by searching the web<br />

for backup alarms, cameras and devices.<br />

A good handout you can use for training employees regarding<br />

this subject is available at: www.nclabor.com/osha/etta/<br />

hazard_alerts/struckby.pdf. Download the NCDOL Hazard<br />

Alert Nine Workers Killed by Vehicles or Moving Equipment.<br />

Materials Handling and Storage<br />

Workers also need to be educated about the risks from materials<br />

that can fall on them or swing into them. Any objects<br />

that might fall to the level below or loads that are lifted, such<br />

as pipes, must be well secured. Buckets of dirt should not be<br />

overflowing. Most important, operators should never swing<br />

loads over workers.<br />

To avoid items rolling or falling into an excavation, workers<br />

should be instructed to store materials, tools and equipment<br />

away from the side of a trench, excavation, manhole or any<br />

other edge where something can fall onto a worker below.<br />

OSHA requires that spoil piles, materials, tools and equipment<br />

be a minimum of 2 ft from the edge of the excavation in<br />

order to help prevent this.<br />

Only trained and competent workers should be assigned<br />

as riggers. They should know and understand how to select<br />

the proper size and type of slings and how to safely rig loads.<br />

Overloading slings and using the wrong type of hitch to safely<br />

secure a load can cause many struck-by accidents. Operators<br />

should also know and understand the concepts of rigging, so<br />

they can supervise the rigger and ensure that loads attached to<br />

their equipment will not detach or slip out of the sling.<br />

Tag lines are made of rope or synthetic webbing attached to<br />

a load to control its sideways movement. Workers should be<br />

instructed to use tag lines to control loads which could swing<br />

out of control. In fact, it is<br />

a good practice to use a tag<br />

line whenever a load is lifted.<br />

Stacks of pipes, lumber<br />

or other objects should be<br />

piled so the materials will<br />

not slide, fall or collapse.<br />

Strapping should be left in<br />

place until it must be removed<br />

to access materials.<br />

When the strapping is removed,<br />

workers should be<br />

wearing safety glasses. The<br />

straps should be cut carefully<br />

and the loose ends<br />

controlled to prevent them<br />

from whipping free and<br />

striking a worker.<br />

Personal protective<br />

equipment is also necessary<br />

to help prevent<br />

struck-by injuries. Hard<br />

hats should always be<br />

Need help training employees<br />

to rig? NUCA’s Rigger Training<br />

DVD, a three- to four-hour<br />

instructor-led course, is<br />

available at the NUCA store at<br />

www.nuca.com.<br />

worn around construction sites to prevent head injuries<br />

from moving equipment or falling objects. Eye protection<br />

is a necessity to prevent objects from striking an employee<br />

in the eye. Work boots or shoes with crush-proof safety<br />

toes should be worn to protect workers’ toes from being<br />

crushed by falling objects.<br />

Conclusion<br />

Struck-by accidents can be prevented, but only if all workers<br />

are aware of the potential hazards and some simple precautions.<br />

It boils down to educating employees. A little training<br />

will reap large benefits. For more information and training<br />

aids visit OSHA’s website at www.osha.gov and take a look at<br />

the following downloadable video: www.dol.gov/dol/media/<br />

webcast/20111031-osha/struck_by_backover_fnl_eng_web.<br />

htm, which is also available in Spanish.<br />

George Kennedy is NUCA Vice President of Safety.<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 29<br />

National <strong>Utility</strong> <strong>Contractor</strong>s Association


nuca news<br />

GUCA Awards Scholarships to Construction Students<br />

GUCA Awards Scholarships (l-r): GSU Construction Department<br />

Chair Dr. Brian Moore; GSU student Julia Brooke West; GUCA<br />

Education Committee Chairman Brian Ponder (Brock Built LLC);<br />

GUCA President Charlie Murren (C.A. Murren & Sons Co. Inc.); and<br />

GSU student Christopher Prince.<br />

Fishing Fun in Florida<br />

The fish on the West Coast of<br />

Florida needed to be wary of NUCA<br />

anglers this fall. Both NUCA of North<br />

Florida and NUCA of Southwest<br />

Florida hosted annual fishing<br />

tournaments. NUCA of Southwest<br />

Florida hosted its event Sept. 16-<br />

18 at ‘Tween Waters Inn on Captiva<br />

Island. It was superbly organized by<br />

new Fishing Tournament Chairman,<br />

Bob Russell and the tournament<br />

committee, Aaron Hunt Branch,<br />

Brett Eckenrode, John Wirka and<br />

Tim Wise.<br />

NUCA of North Florida honored<br />

Craig Carp, a retired Marine who<br />

served three tours in Iraq, at its<br />

annual fishing tournament on Oct.<br />

11 in Jacksonville, Fla. Tony Zebouni<br />

of Regan Zebouni P.A. devised the<br />

idea of sponsoring a boat and asking<br />

the Wounded Warrior Project to<br />

invite a soldier to join the event. The<br />

organization sold $50 raffle tickets<br />

The GUCA Education Committee awarded $2,000 in<br />

scholarships to three construction management students<br />

studying in Georgia at its Fall Quarterly Meeting and<br />

Trade Show in Atlanta on Oct. 27. Junior and senior level<br />

students attending four-year colleges and majoring in<br />

construction or engineering were eligible to apply. Since<br />

1995, the association has awarded more than $143,000 in<br />

scholarships.<br />

“GUCA scholarship opportunities help open the door<br />

to students to complete their educational goals and<br />

hopefully gear their construction-related education to<br />

the much-needed utility construction industry,” said<br />

Scott Brumbelow, GUCA Assistant Executive Director.<br />

This year’s recipients were Allen Lenard Carter, a senior<br />

majoring in construction management at Southern<br />

Polytechnic State University, and Christopher Prince and<br />

Julia Brooke West, both seniors majoring in construction<br />

and management at Georgia Southern University (GSU).<br />

for a chance to join Craig and Captain<br />

Raymond McCauley on his 19-ft boat.<br />

Lauren Atwell and his son L.T. were<br />

the lucky winners. Thanks to Regan<br />

Zebouni for its generous donation<br />

and to Hampton Inn and Suites on<br />

South Boulevard for donating Craig’s<br />

hotel stay. And our special thanks to<br />

Craig for his service to our country.<br />

NUCA of North Florida will be<br />

making a donation in his honor to the<br />

Wounded Warrior Project.<br />

Jim Combs (Holland Pump) with his<br />

grandson Thomas Combs. Thomas<br />

won in the kid’s category.<br />

Ed Porter of Barco-Duval Engineering (left)<br />

presents first place in Spotted Sea Trout<br />

to Steve Dempsey of Ring Power Corp.<br />

Craig Carp (left) receives an award for<br />

third place in the red fish category from<br />

Fishing Committee Chair Ed Porter.<br />

30 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


NUCA news<br />

Florida and Nebraska<br />

Chapters Feature Clay<br />

Shoot Challenges<br />

Both NUCA of Nebraska and the Suncoast <strong>Utility</strong><br />

<strong>Contractor</strong>s Association (SUCA) hosted successful clay<br />

shoot challenges this fall. Nebraska’s Sept. 16 event, held<br />

at the Oak Creek Sporting Club in Brainard, Neb., was<br />

its second annual event. Its 10 teams geared up for the<br />

challenge with a home-cooked meal and then set out for<br />

one of North America’s top 20 courses. Each station on the<br />

course replicates different shots encountered in the field.<br />

Tom Cockle, Bob Cockle, Rad Dobson and Derek<br />

Bookstrom made up the winning team. Tyson Vogt, Steve<br />

Gruber and Fred Matulka were the second place team<br />

and Jim Connell, Tom Welsh, Brett Wawers and Travis<br />

Lienemann were the third. Special thanks to the prize<br />

donors: Cabela’s, Gana Trucking and NMC. Also, a special<br />

thanks to the reception and shooting station sponsors:<br />

Rinker Materials, Untied Rentals, Midlands Contracting,<br />

Road Builders Machinery and HD Supply Waterworks.<br />

Under a perfect blue sky, SUCA held its sixth annual<br />

clay shoot challenge at Tampa Bay Sporting Clays on<br />

Oct. 21. About 50 participants enjoyed the morning<br />

contest followed by a barbecue lunch, raffle prizes and<br />

awards. The members of the winning team were from<br />

Spivey <strong>Utility</strong> Construction and MWI Pump Rental.<br />

Shooters from Keystone Excavators and Ring Power<br />

Corp. took second place. SUCA always honors its<br />

“conservationist” — the player who was, one might say,<br />

most off the mark. That prize was awarded to Bill Taylor<br />

of Caterpillar Financial Services Corp. Ken Montague of<br />

Site and Civil won the shotgun raffle. Congratulations<br />

to all the winners.<br />

NUCA of Nebraska Clay Shooters (l-r): Rick Phillips, Tom<br />

Glow, Jim Gregory and Tim O’Bryan.<br />

NUCA of Nebraska’s Clay Shoot Challenge participants<br />

at the Oak Creek Sporting Club.<br />

NUCA of Nebraska’s Rad Dobson.<br />

NUCA of Nebraska Clay Shooters (l-r): Ryan Kinning<br />

(President-elect), Brad Wegner and Shane Wegner.<br />

<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 31<br />

National <strong>Utility</strong> <strong>Contractor</strong>s Association


For more information go to www.utilitycontractoronline.com/info


industry calendar<br />

January 2012<br />

12 – NUCA of North Florida Installation of<br />

Officers and Annual Meeting, 7:30 a.m.,<br />

River City Brewing Co., Jacksonville, Fla.,<br />

904-296-1230.<br />

30-31 – UUCF Board of Directors and<br />

Legislative Office Visits, Tallahassee,<br />

Fla., 904-296-1230.<br />

February 2012<br />

3 – Santa Fe Summit (New Mexico<br />

Legislative Session 1/17/12 – 2/16/12),<br />

505-888-0752.<br />

4 – NUCA of Iowa Annual Meeting and<br />

Banquet, West Des Moines Marriott,<br />

Des Moines, Iowa, 515-229-2548.<br />

7 – 2012 Georgia <strong>Utility</strong> <strong>Contractor</strong>’s<br />

Association (GUCA) Lobby Day, 404-362-9995.<br />

9 – North Carolina <strong>Utility</strong> <strong>Contractor</strong>’s<br />

Association, Safety and Risk Management<br />

Meeting, Morrison Engineering, Raleigh, N.C.,<br />

910-686-2331.<br />

16 – NUCA of New Mexico Membership<br />

Meeting, 505-888-0752.<br />

18-22 – GUCA Winter Management Conference,<br />

The Elevation Hotel and Spa, Crested Butte, Colo.,<br />

404-362-9995.<br />

March 2012<br />

6-8 – CGA Conference and Expo, Las Vegas,<br />

404-362-9995.<br />

12-16 – NUCA Convention 2012<br />

Fort Worth, Texas, 703-358-9300.<br />

For more information go to www.utilitycontractoronline.com/info<br />

40 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


the pipeline<br />

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<strong>December</strong> 2011 | <strong>Utility</strong> <strong>Contractor</strong> 41


Advertisers’ index<br />

Arntzen<br />

www.arntzenpipe.com.......................................................41<br />

Benjamin Media Resource Center<br />

www.benjaminmedia.com/book-store..............................19<br />

Benjamin Media Resource Center<br />

www.benjaminmedia.com/book-store..............................42<br />

Clean Water Council<br />

www.NUCA.com................................................................41<br />

CNA Insurance<br />

www.cna.com.......................................................................2<br />

Foundation Software<br />

www.foundationsoft.com..................................................11<br />

Godwin Pumps<br />

www.godwinpumps.com...................................................44<br />

Griffin Dewatering<br />

www.Griffindewatering.com................................................5<br />

Griffin Dewatering<br />

www.Griffindewatering.com..............................................40<br />

Hitachi Construction<br />

www.hitachi.com..................................................................7<br />

John Deere<br />

www.JohnDeere.com/YoureOn...........................................3<br />

Kenco<br />

www.kenco.com.................................................................41<br />

McElroy Manufacturing Co.<br />

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Moffatt Enterprises<br />

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NUCA Membership<br />

703-358-9300......................................................................39<br />

Pacific Boring<br />

www.pacificboring.com.....................................................41<br />

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42 <strong>Utility</strong> <strong>Contractor</strong> | <strong>December</strong> 2011


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