Mike Mattei - Construction Executive Magazine
Mike Mattei - Construction Executive Magazine
Mike Mattei - Construction Executive Magazine
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S p e c i a l S e c t i o n : S a f e t y<br />
<strong>Construction</strong><br />
EXECUTIVE<br />
June 2007 t H e M a G a Z i n e f o R t H e B U S i n e S S o f c o n S t R U c t i o n<br />
SucceSS<br />
StorieS<br />
in career<br />
Development<br />
<strong>Mike</strong> <strong>Mattei</strong>, <strong>Mattei</strong>, left,<br />
and Gus Perea,<br />
Adams-Bickel<br />
Associates, Inc.<br />
Mentors<br />
at work
c o n t e n t s<br />
J u n e 2 0 0 7<br />
f e a t u r e s<br />
18 a finely finished craftsman<br />
Associated Builders and Contractors honors Pennsylvania<br />
carpenter <strong>Mike</strong> <strong>Mattei</strong> with its Craft Professional of the<br />
Year award.<br />
24 a Professional Performance<br />
The hands-on skills tested and celebrated at Associated<br />
Builders and Contractors’ National Craft Championships<br />
nurture industry talent.<br />
30 a field of Dreams<br />
Two new higher-ed construction schools in Florida and<br />
Oregon are helping fill the industry’s pressing need for<br />
experienced employees.<br />
38 reducing employment risk<br />
Contractors can diminish the risk of labor lawsuits by<br />
improving the human resources component of their<br />
operations.<br />
44 Long Bay systems enable Large open spans<br />
Requiring limited labor and resulting in faster occupancy<br />
for the owner, cold-formed joist roof framing systems are a<br />
cost-effective way to create wide open spaces.<br />
special section: safety<br />
48 osHa Inspections for consideration in 2007<br />
52 Keep safety in Mind from the start<br />
56 osHa Inspections and salts:<br />
Minimizing Disruption<br />
D e P a r t M e n t s<br />
2 on the Level<br />
4 Washington update<br />
6 economic outlook<br />
8 construction Headlines<br />
10 Legally speaking<br />
14 tech trends<br />
16 onsite safety<br />
60 risk Management<br />
62 Workforce Development<br />
66 around the nation<br />
68 Product Gallery<br />
COVER PHOTOGRAPHY BY JEFFREY PREHN<br />
construction executive<br />
18 30<br />
24<br />
44<br />
JuLy PrevIeW<br />
Look in next month’s issue for articles on sustainable<br />
building and a special section on fleet management.<br />
June 2007 <strong>Construction</strong> ExEcutivE |
JEFFREY PRENH ©<br />
o n t h e L e v e L<br />
B y K I r K P I c K e r e L<br />
Time to Give Back<br />
While the construction industry continues to become more cost effective and innovative<br />
thanks to the use of technology, one challenge holds back many contractors across the<br />
country. For the past 15 to 20 years, the construction industry’s workforce has dwindled<br />
as its aging craft professionals retire in numbers greater than the young people entering<br />
construction careers. The reasons:<br />
• more career options exist today for high school and college graduates than ever<br />
before;<br />
• the computer world and other industries simply do a better job of promoting their<br />
career options;<br />
• the public perceives the construction industry as dirty and dangerous; and<br />
• teachers, guidance counselors and parents often view construction as a worst-case<br />
career choice and do not promote the industry as a viable career option.<br />
But, what lies at the heart of the problem is the<br />
fact many contractors choose to ignore the looming<br />
crisis rather than taking the initiative to reach<br />
out and tell their success stories to the younger<br />
generation that has yet to choose a career path.<br />
Too often, I hear contractors tell me, “well,<br />
that’s your job.” Trade associations certainly play<br />
a critical role in improving the industry’s image<br />
and helping to ensure a future workforce exists.<br />
For example, Associated Builders and Contractors<br />
and its chapters establish relationships with<br />
high schools, vocational/technical schools, colleges<br />
and universities; provide state-of-the-art craft,<br />
apprenticeship, safety and management training<br />
programs; and highlight the high-tech skills<br />
required of craft professionals through programs<br />
like the National Craft Championships and the<br />
Craft Professional of the Year.<br />
These efforts and others, however, must be augmented by contractors taking the time<br />
to share their personal experiences and how construction contributes to their lifelong<br />
success. Whether your career as a construction executive just began or you are looking<br />
forward to retirement in the near future, you should feel personally responsible to your<br />
current employees, your company and the industry as a whole to spread the word that<br />
construction has been good to you. After all, giving back is what life’s all about.<br />
Kirk Pickerel<br />
Publisher<br />
| <strong>Construction</strong> ExEcutivE June 2007<br />
tHe MaGazIne for tHe<br />
BusIness of constructIon<br />
P u b l i s h e r<br />
M. Kirk Pickerel, CAE<br />
President/CEO<br />
e x e c u t i v e e d i t o r<br />
Gail A. Raiman<br />
Vice President, Public Affairs<br />
e d i t o r - i n - c h i e f<br />
Lisa A. Nardone<br />
A s s i s t A n t e d i t o r<br />
Lauren Pinch<br />
s t A f f W r i t e r<br />
Joanna Masterson<br />
d e s i g n A n d P r o d u c t i o n<br />
The <strong>Magazine</strong> Group<br />
A d v e r t i s i n g A n d r e P r i n t s<br />
Donald R. Berry,<br />
National Sales Manager, (908) 852-7466<br />
dberry@constructionexec.com<br />
Stephen B. Donohue,<br />
Regional Sales Manager, (609) 654-4568<br />
sdonohue@constructionexec.com<br />
<strong>Construction</strong> <strong>Executive</strong> (ISSN 1544-3620, Vol.<br />
16, No. 6) is published monthly by Associated<br />
Builders and Contractors Services Corp., 4250<br />
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e d i t o r i A l A d v i s o r y b o A r d<br />
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David Meyer, The Meyer Companies, Inc.<br />
Kevin Miller, Brigham Young University<br />
Michael O’Dea, Purdue University<br />
Bill Pinto, Hardin <strong>Construction</strong> Company<br />
Jack Rafn, Rafn Company<br />
Hugh L. Rice, FMI Corporation<br />
Greg Spenner, Associated Builders<br />
and Contractors, Iowa Chapter
washington<br />
e updater<br />
According to the latest federal data,<br />
the rate of U.S. workplace fatalities is<br />
down to four deaths per 100,000 workers,<br />
and the injury and illness rate is down to<br />
4.6 per 100 workers. Both of these rates<br />
are the lowest in the history of the Occupational<br />
Safety and Health Administration<br />
(OSHA).<br />
Despite these improvements in workplace<br />
safety, and the fact that Congress<br />
has held few hearings on the issue, Sen.<br />
Edward Kennedy (D-Mass.) and Rep.<br />
Lynn Woolsey (D-Calif.) recently introduced<br />
comprehensive legislation that<br />
would make several significant changes to<br />
the Occupational Safety and Health Act,<br />
the law that governs OSHA.<br />
| <strong>Construction</strong> ExEcutivE June 2007<br />
G u L a t o r y a n D L e G I s L a t I v e n e W s<br />
B y s P e n c e r r I t c H I e<br />
Congress to Consider<br />
Sweeping OSHA Changes<br />
Among the many proposed changes,<br />
the Protecting America’s Workers Act<br />
(S.1244 and H.R.2049) would: significantly<br />
increase penalties, including instituting<br />
a minimum and maximum penalty<br />
of $50,000 and $250,000, and raise the<br />
criminal penalty from a misdemeanor to a<br />
felony for violations deemed “willful” that<br />
result in a “serious bodily injury” or death;<br />
require employers to provide all personal<br />
protective equipment (PPE) to their<br />
employees; and prevent the dismissal of<br />
employees for refusing to perform duties<br />
they perceive as dangerous.<br />
By increasing monetary and criminal<br />
penalties, the bill mistakenly takes an<br />
adversarial, citation-focused approach to<br />
improving workplace safety. This approach<br />
would seriously damage the collaborative<br />
relationship OSHA has developed in<br />
recent years with the construction industry<br />
through the use of strategic partnerships<br />
and alliances.<br />
For example, the increased criminal<br />
penalty from a misdemeanor to a felony<br />
for certain violations would cause routine<br />
settlements between OSHA and employers<br />
to become highly contentious, potentially<br />
forcing OSHA to secure search<br />
warrants to conduct simple investigations.<br />
This would hamper OSHA’s ability to get<br />
employers to address hazards and drain<br />
much-needed resources and time defending<br />
citations.<br />
While many employers already provide<br />
most PPE used in the workplace as a result<br />
of routine employer-employee negotia-<br />
tions, the bill would leave the door open<br />
for employers to provide a virtually limitless,<br />
undefined supply of personal protective<br />
equipment.<br />
Finally, the provision in the legislation<br />
that would prohibit an employer from<br />
dismissing an employee for refusing to<br />
perform a duty the employee perceives as<br />
dangerous, while well-intentioned, invites<br />
abuse by employees whose sole purpose<br />
is to force recognition of a union by disrupting<br />
business operations, a malicious<br />
practice commonly known as salting.<br />
Some of the other changes in the bill<br />
include: expanding OSHA coverage to<br />
government employees; providing new<br />
participation rights to accident victims<br />
and their representatives during investigations<br />
and settlement negotiations<br />
regarding serious injuries or deaths;<br />
requiring OSHA to investigate any<br />
workplace incident that results in a serious<br />
injury or death; and updating whistleblower<br />
protections.<br />
While any effort to improve workplace<br />
safety is commendable, the legislation SOURCE<br />
introduced by Sen. Kennedy and Rep.<br />
Woolsey would create more problems<br />
than it intends to solve. In order to further<br />
reduce workplace accidents, OSHA must ILLUSTRATION<br />
continue to work with the construction<br />
industry, not against it. The focus should<br />
be on how to prevent accidents, not how<br />
to respond to them.<br />
SANFORD/STOCK<br />
ritchie is director of legislative affairs for<br />
LEE<br />
Associated Builders and contractors. IVAN
economic<br />
outlook<br />
More Jobs, Fewer Workers:<br />
<strong>Construction</strong>’s Critical Challenge<br />
EvEn though thE construction industry<br />
has generated nearly one million jobs during<br />
the past five years and 2.2 million jobs<br />
since 1997, most companies are finding it<br />
increasingly difficult to recruit and retain<br />
qualified employees. In fact, a recent survey<br />
by the consulting firm ZweigWhite states<br />
that attracting qualified employees is the<br />
most critical challenge facing the construction<br />
industry today. The survey results also<br />
indicate that the lack of qualified employees,<br />
particularly managers and experienced<br />
craft professionals, is viewed as the largest<br />
impediment to sustaining the future<br />
growth of the construction industry.<br />
Concern about the workforce shortage<br />
is heightened by the robust growth of both<br />
construction spending and employment.<br />
| <strong>Construction</strong> ExEcutivE June 2007<br />
B y J e f f r y T a y l o r<br />
Between 2002 and March 2007, total construction<br />
spending increased from $895 billion<br />
to $1.2 trillion, according to the Department<br />
of Commerce. Following that increase,<br />
total construction employment rose nearly<br />
one million to 7.7 million employees.<br />
Commercial and other non-residential<br />
construction is especially on the rise, and<br />
a new study by George Mason University<br />
professor Stephen Fuller illustrates the<br />
ripple effect this is having on the industry.<br />
The report determined non-residential<br />
construction in 2005 added $148 billion<br />
in direct benefits to the economy and created<br />
4.2 million full-time jobs. Fuller also<br />
reported that every million dollars spent<br />
on non-residential construction generates<br />
28.5 full-time jobs. This is great news for<br />
the economy, but only if people start filling<br />
the open positions.<br />
Government and private sector estimates<br />
indicate the construction industry<br />
will need to recruit between 115,000 and<br />
200,000 employees each year between<br />
now and 2015 to fill anticipated vacancies<br />
created by new openings, retirement<br />
and career path decisions. The crafts have<br />
been especially hard hit, and various studies<br />
suggest the craft professionals most in<br />
demand during the next 10 years will be<br />
carpenters, electricians, pipefitters, plumbers<br />
and steamfitters.<br />
The U.S. Department of Labor’s<br />
Bureau of Labor Statistics (BLS) estimates<br />
construction jobs will grow approximately<br />
1.5 percent during each of the next 10<br />
years, while the rest of the workforce’s job<br />
growth will be about 1.1 percent annually.<br />
During the past several years, however,<br />
construction employment increased<br />
much more rapidly than BLS estimates.<br />
This is likely to result in an increasingly<br />
tight labor market, particularly for nonresidential<br />
construction.<br />
The lack of qualified employees coupled<br />
with the high demand for these individuals<br />
has led to the significant acceleration of<br />
labor costs, and not just salaries—incentive<br />
and benefit costs continue to rise as well.<br />
According to BLS, average hourly earnings<br />
rose to an all-time high of $20.60 in February<br />
2007, up nearly 5 percent from the previous<br />
year and up 13 percent over the past<br />
five years. This trend is expected to continue<br />
as demand for labor is likely to remain<br />
biased toward higher paid, highly skilled<br />
non-residential construction employees.
millions<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
Age 15–24<br />
Entering the<br />
Workforce<br />
20.4<br />
16<br />
4.4<br />
Compounding the labor shortage is<br />
the diminishing number of younger people<br />
entering the construction workforce.<br />
According to the <strong>Construction</strong> Industry<br />
Institute, the number of younger employees<br />
(15 to 24 years old) compared to those<br />
Age 50–59<br />
Leaving the<br />
Workforce<br />
22 21.5<br />
19.3<br />
2.7<br />
Potential<br />
<strong>Construction</strong><br />
Workers<br />
20.6<br />
2002–2007 2007–2012 2012–2017<br />
0.9<br />
employees likely to retire (50 to 59 years<br />
old) will decline from the current level of<br />
2.7 million to just under one million by<br />
2017. Increased focus on training, both at<br />
the university and apprenticeship levels, is<br />
critical for the future of the industry.<br />
Though reaching younger generations is<br />
a challenge, the construction industry is taking<br />
steps toward diversifying its workforce.<br />
Female employment increased from 830,000<br />
in 2002 to 951,000 in 2006, and African<br />
Americans now comprise approximately<br />
7 percent of the construction workforce.<br />
Hispanic employment in the construction<br />
industry has increased significantly during<br />
the past five years, with 15 percent of all<br />
Hispanic workers currently employed in<br />
construction, according to the Pew Hispanic<br />
Center. Reaching out and remaining open<br />
to all types of potential employees, while<br />
upholding immigration laws, is critical to a<br />
contractor’s recruitment success.<br />
Overall, the construction industry appears<br />
to be headed into an era in which everything<br />
is on the way up—construction spending,<br />
demand for skilled craft professionals, workplace<br />
diversity, wages, insurance premiums—<br />
except for the number of employees entering<br />
the workforce. These increased costs and the<br />
tightening of the labor market inevitably will<br />
intensify the burden on construction firms,<br />
particularly smaller construction firms.<br />
taylor is chief economist for Associated<br />
Builders and Contractors.<br />
June 2007 <strong>Construction</strong> ExEcutivE |
construction<br />
headlines B y J o a n n a M a s t e r s o n<br />
Senate, HouSe ConSider<br />
oSHa reform LegiSLation<br />
SEN. TED KENNEDY (D-Mass.) and Rep.<br />
Lynn Woolsey (D-Calif.) recently introduced<br />
identical Occupational Safety and Health<br />
Administration (OSHA) reform bills that<br />
propose sweeping changes to the Occupational<br />
Safety and Health Act of 1970.<br />
Among other provisions, the Protecting<br />
America’s Workers Act (S. 1244 and H.R.<br />
2049) would:<br />
• institute minimum penalties of $50,000<br />
per violation for fatalities or serious<br />
injuries, with maximum penalties up to<br />
$250,000;<br />
[ I n d u s t r y E v E n t s C a l E n d a r]<br />
Associated Builders<br />
and Contractors<br />
Excellence in<br />
<strong>Construction</strong> and<br />
National Safety<br />
Excellence Awards<br />
Celebration<br />
June 12<br />
Washington, D.C.<br />
| <strong>Construction</strong> ExEcutivE June 2007<br />
Associated Builders<br />
and Contractors<br />
National Legislative<br />
Conference<br />
June 13–14<br />
Washington, D.C.<br />
senator Introduces<br />
secret Ballot Legislation<br />
SEN. JIM DEMINT (R-S.C.) recently<br />
introduced the Secret Ballot Protection Act<br />
(S. 1312), a measure that would ensure<br />
employees’ right to a private, secret-ballot<br />
election conducted by the National Labor<br />
Relations Board (NLRB) when deciding<br />
whether to be represented by a labor<br />
organization.<br />
The bill would prohibit a union from<br />
being recognized based on a card-check<br />
campaign, in which union officials gather<br />
• change criminal sanctions for willful<br />
violations that lead to a worker’s death or<br />
serious injury from a misdemeanor to a<br />
felony;<br />
• offer new participation rights to accident<br />
victims and their representatives during<br />
investigations and negotiations;<br />
• require OSHA to investigate all covered<br />
workers’ deaths or serious injuries;<br />
• cover more workers, including state<br />
employees, in OSHA’s jurisdiction; and<br />
• update whistleblower protections.<br />
CongreSS examineS nLra<br />
definition of SuperviSor<br />
BOTH THE SENATE and the House<br />
of Representatives are reviewing legislation<br />
that would rewrite the definition of<br />
National Association<br />
of Women in<br />
<strong>Construction</strong> Annual<br />
Convention<br />
Sept. 5–8<br />
Orlando, Fla.<br />
“authorization cards” signed by workers<br />
expressing their desire for the union to<br />
represent them. Under current law, employers<br />
are not required to recognize unions<br />
based on these card checks, but may do<br />
so voluntarily.<br />
The late U.S. Rep. Charlie Norwood<br />
(R-Ga.), who died Feb. 13 after a long fight<br />
against cancer and lung disease, introduced<br />
companion legislation (H.R. 866) in the U.S.<br />
House of Representatives earlier this year.<br />
“supervisor” in the National Labor Rela-<br />
tions Act (NLRA). The Re-empowerment<br />
of Skilled and Professional Employees<br />
and <strong>Construction</strong> Tradeworkers Act comes<br />
as a response to three decisions issued<br />
by the National Labor Relations Board<br />
(NLRB) last fall that define supervisors<br />
differently.<br />
Sen. Christopher Dodd (D-Conn.) and<br />
Rep. Robert Andrews (D-N.J.) introduced<br />
the measure, which would overturn more<br />
than 50 years of NLRB and U.S. Supreme<br />
Court precedent defining supervisory status<br />
under the NLRA. The union-supported<br />
bill would sharply reduce the number of<br />
employees who would qualify as part of<br />
management in many industries, including<br />
construction.
Senator<br />
propoSeS<br />
BiLL Banning<br />
aSBeStoS<br />
SEN. PATTY MURRAY<br />
(D-Wash.) introduced the Ban<br />
Asbestos in America Act of 2007 in<br />
the U.S. Senate, calling for a stop to the<br />
importation, manufacture and distribution<br />
of products containing asbestos. More than<br />
40 other countries have already banned<br />
asbestos.<br />
The bill would create a $50 million network<br />
of 10 research and treatment centers<br />
for finding treatment options and seeking<br />
early detection and prevention of asbestosrelated<br />
diseases. Other components of the<br />
bill include: expanding an existing registry<br />
of patients to include all patients with<br />
asbestos-related diseases; requiring<br />
the Environmental Protection Agency to<br />
conduct a public education campaign to<br />
increase asbestos awareness; and requiring<br />
the Department of Defense and the<br />
National Institute for Occupational Safety<br />
and Health to conduct research on the<br />
health effects and measurement methods<br />
of asbestos.<br />
DESPITE A RECORD 18 percent growth since 2003, the Portland<br />
Cement Association (PCA) projects cement consumption<br />
will decline by 1.5 percent this year. PCA anticipates gradual<br />
gains throughout the second half of 2007, but not large enough<br />
to offset the year’s first-half weaknesses. However, the increased<br />
construction activity should carry over to 2008 and contribute an<br />
estimated 3.9 percent growth in consumption.<br />
American Public Works<br />
Association Congress<br />
Sept. 9–12<br />
San Antonio, Texas<br />
HiSpaniCS reportedLy<br />
fiLL majority of new<br />
ConStruCtion joBS<br />
A FACT SHEET released by the Pew<br />
Hispanic Center reported Hispanic workers<br />
landed two out of every three new construction<br />
jobs in 2006, with the majority of<br />
jobs filled by foreign-born Latinos.<br />
According to the nonpartisan research<br />
organization, which works to chronicle<br />
Latinos’ impact on the nation, total employment<br />
in the construction industry grew by<br />
559,000 last year, with Hispanic workers<br />
accounting for 372,000, or 66.5 percent, of<br />
that increase.<br />
Most jobs were located in the South and<br />
West, which the center said is consistent<br />
with the overall distribution of the Hispanic<br />
workforce.<br />
pCa expeCtS Cement ConSumption to deCLine<br />
American Road &<br />
Transportation Builders<br />
Association National<br />
Convention<br />
Oct. 9–12<br />
Ft. Lauderdale, Fla.<br />
International Risk<br />
Management Institute<br />
<strong>Construction</strong> Risk<br />
Conference<br />
Oct. 29–Nov. 1<br />
Orlando, Fla.<br />
JON LOvE/GETTy IMAGES<br />
foreign SaLeS<br />
of u.S. ConStruCtion<br />
equipment riSe<br />
U.S. EXPORTS OF construction machinery<br />
gained 34 percent in 2006 for a total<br />
of $13.7 billion worth of equipment sold<br />
worldwide, according to the Association<br />
of Equipment Manufacturers. Exports to<br />
Central America rose 40.5 percent to<br />
$1.3 billion; Africa increased 34 percent to<br />
$640 million; Australia/Oceania increased<br />
26 percent to $1.4 billion; Canada increased<br />
22 percent to $5 billion; and South<br />
America increased almost 17 percent to<br />
$1.9 billion. Machinery exports in Asia<br />
and Europe declined 11 percent and<br />
12 percent, respectively.<br />
PCA’s forecast reflects a nearly 6 million metric ton decline<br />
in residential cement consumption levels compared to 2006.<br />
Even with the overall decline in consumption, PCA predicts a<br />
1.5 percent increase in cement intensity this year—meaning more<br />
tons of cement and concrete will be used per dollar of construction<br />
activity.<br />
www.abc.org/newsline<br />
Want a weekly review of the most up-<br />
to-date construction headlines, including<br />
legal, regulatory and political news affect-<br />
ing the construction industry?<br />
Visit Newsline, the online newsletter<br />
published by Associated Builders and<br />
Contractors, at www.abc.org/newsline.<br />
June 2007 <strong>Construction</strong> ExEcutivE |
l e g a l ly s p e a k i n g<br />
B y R a n d o l p h s . s e R g e n t<br />
Contractors that hire subcontractors<br />
often want to ensure they can<br />
arbitrate disputes rather than face litigation.<br />
When a contractor issues a payment<br />
bond, however, a subcontractor can choose<br />
payment sources directly from the contractor<br />
or from the surety that issued the contractor’s<br />
payment bond. It may be difficult<br />
to compel a subcontractor to proceed in<br />
arbitration if it chooses to file suit under<br />
a bond, but a contractor can take certain<br />
actions to make arbitration more likely.<br />
Arbitrating construction disputes provides<br />
a number of benefits. Parties in arbitration<br />
follow streamlined procedures, such<br />
as those set forth in the American Arbitration<br />
Association’s rules for construction<br />
industry disputes, and can seek an arbitrator<br />
with relevant expertise in a particular field,<br />
rather than a judge or jury without knowledge<br />
of construction issues. Fewer discoveries<br />
occur in arbitration—in terms of both<br />
quantity and total length of time.<br />
Arbitration hearings are shorter than<br />
court trials, particularly jury trials, and a<br />
case is more likely to end after an arbitrator’s<br />
decision because it is very difficult to<br />
appeal an arbitration award. Done properly,<br />
the streamlined procedures, limited<br />
discovery and shorter hearings lead to a<br />
quicker and less expensive result.<br />
A contractor that wants to preserve its<br />
right to arbitrate with a subcontractor must<br />
include an arbitration provision in its subcontract.<br />
An arbitration provision in the<br />
subcontract, however, does not always mean<br />
arbitration is required when a subcontractor<br />
makes a claim on the contractor’s payment<br />
bond. Formally, the subcontractor’s<br />
claim would be against the surety, not the<br />
10 | <strong>Construction</strong> ExEcutivE June 2007<br />
Payment Bonds,<br />
Subcontractors and Protecting<br />
The Right to Arbitrate<br />
contractor, and would be based on a different<br />
contract—the bond—which may or<br />
may not contain an arbitration clause. If the<br />
subcontractor can litigate claims under the<br />
bond in court, the contractor may lose the<br />
benefit of its arbitration clause.<br />
If the subcontractor files suit under the<br />
bond, and the surety tenders the defense<br />
SourCe<br />
to the contractor, the contractor may wind<br />
illuStration<br />
up litigating the same dispute in court that<br />
it sought to place in arbitration.<br />
The problem is compounded by the<br />
fact that an individual contractor has little laird/StoCk<br />
ability to change the payment bond’s form<br />
language, as opposed to having control of<br />
the contents of its own subcontract. Campbell
l e g a l ly s p e a k i n g<br />
Two approaches can compel subcontractors<br />
to arbitrate claims under a bond, when<br />
those claims are based on an underlying subcontract<br />
that contains an arbitration clause.<br />
The first approach, incorporation,<br />
requires an express term in the payment<br />
bond stating that it incorporates the terms<br />
of the subcontract. In such a case, the arbitration<br />
clause in the subcontract is part of<br />
the bond as if it were set forth in the bond<br />
itself. If the bond expressly incorporates<br />
the subcontract, the contractor or surety<br />
can argue the arbitration clause is also<br />
a term in the bond, and that arbitration<br />
should be compelled under the bond.<br />
There are some caveats to this approach.<br />
First, while most courts find that arbitration<br />
is required when a bond incorporates a<br />
contract with an arbitration clause, not all<br />
jurisdictions agree. The Maryland courts,<br />
for example, have rejected this argument.<br />
Second, the incorporation term in<br />
the payment bond must incorporate the<br />
subcontract, not just the contractor’s contractual<br />
obligations. A payment bond that<br />
guarantees all of a contractor’s payment<br />
obligations on a project will commonly<br />
incorporate the contract between the con-<br />
12 | <strong>Construction</strong> ExEcutivE June 2007<br />
tractor and the party that hired the contractor<br />
(whether it’s a general contractor<br />
or an owner). This does not mean that any<br />
subcontracts issued by the contractor also<br />
are incorporated into the bond.<br />
If the arbitration clause is not broad<br />
enough (e.g., if it is limited only to disputes<br />
between specified entities), the courts may<br />
not read the clause as requiring arbitration<br />
under the bond, even if arbitration is incorporated<br />
into the bond.<br />
The second approach is based on a<br />
legal doctrine called estoppel, which<br />
requires the subcontract to contain a<br />
broad arbitration clause. Such a broad<br />
clause may require the subcontractor to<br />
arbitrate any or all disputes that relate<br />
to or arise from the subcontract, without<br />
any limitations on the type of claim or the<br />
parties involved. The clause should not be<br />
limited to disputes between the contractor<br />
and subcontractor.<br />
If the subcontract contains a broad<br />
clause, the contractor or surety can argue<br />
the subcontractor’s promise in the subcontract<br />
should extend to the bond because<br />
any claims for payment under the bond<br />
would be based on the subcontractor’s<br />
work under the subcontract, and the subcontract<br />
would govern whether any payments<br />
to the subcontractor are due.<br />
This argument is relatively new,<br />
although a line of federal cases has recognized<br />
estoppel in similar situations and the<br />
courts have found it essentially fair to hold<br />
the subcontractor to its broad promise.<br />
To maximize the application of estoppel,<br />
the contractor should first make sure the<br />
clause applies to “any and all disputes arising<br />
from or relating to this subcontract,”<br />
or similar language. Second, the clause<br />
should not expressly refer only to disputes<br />
between the contractor and subcontractor.<br />
Third, it may be advisable to insert language<br />
such as “including but not limited<br />
to any claims under any bond” to make the<br />
parties’ intentions clear.<br />
Without control over the language in<br />
the payment bond, drawing a broad arbitration<br />
clause provides the best chance of<br />
compelling subcontractors to proceed with<br />
arbitration.<br />
Sergent is a partner at Venable, LLP,<br />
Baltimore. For more information, call (410)<br />
528-2881 or email rsergent@venable.com.
t e c h t r e n d s<br />
b y d a v i d m c k i t t r i c k<br />
If ever there existed a testimonial<br />
about the integrity of a wall, it would<br />
have come from the builders of the Great<br />
Wall of China. Even though some original<br />
sections have surrendered to natural and<br />
manmade forces, it is still standing more<br />
than 2,300 years after construction began.<br />
While the construction material of choice<br />
for today’s retaining structures<br />
is conceptually similar<br />
to that of the Great Wall,<br />
applying technology gives<br />
modern walls a higher<br />
measure of strength, durability<br />
and safety.<br />
Recognized as one<br />
of the most important<br />
civil engineering innovations<br />
of the 20th century,<br />
mechanically stabilized<br />
earth (MSE) technology<br />
allows retaining structures<br />
to be designed and built<br />
higher, stronger and more<br />
economically than ever<br />
before.<br />
Thirty years after its<br />
introduction in the United<br />
States, the most popular<br />
MSE configuration uses<br />
steel strips embedded in<br />
granular fills and faced<br />
with precast concrete<br />
panels.<br />
Their safety and reliability features have<br />
made these MSE structures the retention<br />
system of choice for many state departments<br />
of transportation (DOT) that are<br />
responsible for public safety along roadways.<br />
More than half of DOT-deployed<br />
retaining structures are MSE-based, which<br />
amounts to roughly 10 million square feet<br />
a year. Their success here is grounded in<br />
the design-build concept where structure<br />
performance, rather than end product or<br />
materials, is specified in contracts.<br />
14 | <strong>Construction</strong> ExEcutivE June 2007<br />
What Makes<br />
A Great Wall?<br />
by specifying<br />
performance,<br />
rather than<br />
materials or<br />
end-products,<br />
developers<br />
can take<br />
advantage<br />
of several<br />
innovations<br />
in mse<br />
construction<br />
that save time<br />
and money.<br />
DOT contractors have the flexibility<br />
to use whatever materials and construction<br />
methods give the best value for the<br />
required level of performance. For commercial<br />
developers, a similar approach also<br />
makes sense when they adopt MSE technology<br />
to re-grade and make sub-prime<br />
sites economically viable.<br />
Here are a few MSE<br />
performance specifications<br />
to consider:<br />
• Design responsibility:<br />
Developers can lower risk<br />
when their specification<br />
requires the general contractor<br />
to subcontract MSE<br />
design and construction to<br />
a specialist with relevant<br />
experience and appropriate<br />
levels of insurance. When<br />
consulting with the engineer<br />
of record, the developer<br />
must specify which<br />
party will be responsible<br />
for the structure’s internal<br />
and global stability.<br />
• Design code: The most<br />
rigorous design code comes<br />
from the American Association<br />
of State Highway<br />
and Transportation Officials.<br />
Compliance with this<br />
code has an added benefit if<br />
supporting site roads will be<br />
adopted by state or local governments.<br />
• Surcharges and external loading conditions:<br />
External conditions generally determine<br />
the required size of the structure, so<br />
it is critical to specify these in clear terms.<br />
• Structural envelope: Specify the structural<br />
envelope to ensure the necessary<br />
amount of right of way, and any minimum<br />
or maximum batters (the backleaning<br />
angle that’s built into the front<br />
face of a structure). Keep in mind that a<br />
70-degree stepped wall is less expensive<br />
to build than one with a vertical face, but<br />
takes up more land.<br />
• Settlement: Depending on the geometry<br />
and ground conditions, make sure the<br />
specifications include reasonable settlement<br />
criteria—both for foundation design<br />
and bearing capacity—that are compatible<br />
with other aspects of the project. Specify if<br />
staged construction is necessary.<br />
• Aesthetics: Stipulate the desired look,<br />
such as concrete for top-class facing or<br />
gabion for lesser requirements.<br />
By specifying performance, rather than<br />
materials or end-products, developers can<br />
take advantage of several innovations in MSE<br />
construction that save time and money.<br />
For example, MSE walls incorporating<br />
geosynthetic straps—developed for<br />
the chloride-rich soils of the Middle<br />
East—are becoming more common as a<br />
substitute for steel. The polymer-based<br />
construction of the geosynthetic straps<br />
provides a higher level of durability so they<br />
can be used with recycled concrete, which<br />
costs significantly less in areas where quarried<br />
backfills are expensive. (This also may<br />
help qualify a project for credits under the<br />
Leadership in Energy and Environmental<br />
Design rating system of the U.S. Green<br />
Building Council.)<br />
Also, developers increasingly use welded<br />
wire facings and “green” walls that accommodate<br />
high settlements and cost less than<br />
concrete or stone-faced structures.<br />
With their recent refinements, MSE<br />
structures are an increasingly important<br />
part of today’s commercial development<br />
environment. Written in the context of a<br />
design-build contract, their performance<br />
specifications give developers appropriate<br />
tradeoffs and the best value, so they, too,<br />
can build a great wall.<br />
McKittrick is managing director of EarthTec.<br />
For more information, call (703) 771-9844 or<br />
email dmckittrick@geostructures.com.
o n s i t e s a f e t y<br />
b y s t u a r t n a k u t i n<br />
According to the National<br />
Safety Council, one or more near misses<br />
precede 75 percent of all accidents. These<br />
close calls should serve as wake-up calls for<br />
employees to realize something is wrong<br />
and needs to be corrected.<br />
Employees may not realize they are<br />
expected to report near misses—no matter<br />
how trivial—to help prevent future accidents.<br />
By recognizing near misses and taking<br />
action to correct the underlying problems,<br />
employees not only help reduce the number<br />
of near misses, but more importantly,<br />
16 | <strong>Construction</strong> ExEcutivE June 2007<br />
Near Misses: Training<br />
Employees to Identify<br />
Hazardous Conditions<br />
they help reduce the number of actual<br />
accidents.<br />
Here are some examples of near misses<br />
in the workplace:<br />
• An employee trips over an extension cord<br />
that lies across the floor, but avoids a fall<br />
by grabbing the corner of a desk.<br />
• An outward-opening door nearly hits a<br />
worker, who jumps back just in time to<br />
avoid a mishap.<br />
• Instead of using a ladder, an employee<br />
steps on a box, loses balance and stumbles<br />
to the ground. Although the employee is<br />
shaken, no injury occurs.<br />
When incidents like these happen,<br />
most workers are relieved they were not<br />
injured and then simply forget about their<br />
close call moments later. However, when<br />
employees narrowly avoid an accident or<br />
injury, everyone should assume they are at<br />
risk from the same hazard.<br />
The difference between a near miss and<br />
a serious injury is often a fraction of an<br />
inch or a split second of time. Near misses<br />
are red flags that let employees know a<br />
jobsite behavior is wrong or unsafe and<br />
requires immediate attention.<br />
What a person does about these warnings<br />
can make all the difference between<br />
future injuries and a zero-accidents safety<br />
record.<br />
When an unfortunate near miss happens,<br />
use it as a training opportunity.<br />
Organize a safety meeting to discuss what<br />
actually happened, what could have hap-<br />
pened and ways to ensure it doesn’t happen<br />
again.<br />
The meeting could begin with the<br />
trainer sharing his experiences with close<br />
calls, which may prompt the trainees to<br />
share their own examples. This heightens<br />
awareness of the illustrated safety hazards<br />
and encourages employees to take action<br />
to correct underlying problems. When<br />
the light bulb goes on, trainees begin to<br />
understand they will not be lucky enough<br />
to avoid accidents every time.<br />
One problem with near misses is<br />
employees often do not know they happened,<br />
which makes it difficult to fix or<br />
prevent future incidents. Many employees<br />
simply return to work without mentioning<br />
an incident to their supervisor. Employees<br />
think if nobody gets hurt and no damage<br />
occurs, it’s not really an accident that must<br />
be reported.<br />
Unfortunately, this mentality can be<br />
found in countless work environments<br />
on a daily basis. Encouraging employees<br />
to treat close calls exactly the way they<br />
treat accidents—with immediate reporting—is<br />
the crucial first step to finding<br />
causes, taking corrective action and training<br />
employees to avoid the real accident ImaGes<br />
waiting to happen.<br />
Nakutin is director of claims, loss control<br />
and human resources for Cavignac & As- Goode/Getty<br />
sociates, San Diego. For more information,<br />
visit www.cavignac.com. Larry
A Finely<br />
•As ABC’s<br />
Craft Professional<br />
of the Year,<br />
<strong>Mike</strong> <strong>Mattei</strong><br />
Leads By Example<br />
18 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
B y L a u r e n P i n c h<br />
The day he heard his name announced<br />
in front of his most esteemed peers, along<br />
with the day a new silver truck arrived in<br />
his driveway, will always stand out in <strong>Mike</strong><br />
<strong>Mattei</strong>’s memory. But for this Pennsylvania<br />
carpenter, the pride in his craft and<br />
the recognition from the construction<br />
industry made being named Associated<br />
Builders and Contractors’ (ABC) Craft<br />
Professional of the Year one of his life’s<br />
greatest moments.<br />
“I was really flabbergasted to be nominated<br />
for the award—completely taken<br />
aback,” says <strong>Mattei</strong>, who works as a professional<br />
finish carpenter for Adams-Bickel<br />
Associates, Inc., Collegeville, Pa. “When<br />
you take into consideration the history and<br />
tradition of the construction industry, it is<br />
humbling to be recognized among the top<br />
in my craft.”<br />
Selected among seven national finalists,<br />
<strong>Mattei</strong> received a full-size truck from<br />
Tradesmen International, the official sponsor<br />
of the competition.<br />
Candidates chosen to represent their<br />
respective crafts are judged on their mast
Finished<br />
June 2007 <strong>Construction</strong> ExEcutivE | 19
•<br />
M a t t e i<br />
tery of job-related skills, safety performance<br />
record, leadership, professionalism,<br />
community and industry service, personal<br />
motivation, credentials and commitment<br />
to the merit shop construction philosophy—all<br />
qualities <strong>Mattei</strong> possesses.<br />
“In terms of attributes that serve as an<br />
example to other employees at Adams-<br />
Bickel, number one is his patience,” says<br />
Gus Perea, president of the company.<br />
“Number two is his understanding of his<br />
craft. He thinks the job through, he’s not<br />
afraid to ask questions and he’s not afraid<br />
to challenge something if he sees it going<br />
in the wrong direction. He likes to create<br />
synergy with others on the team.”<br />
The definition of a self-starter, <strong>Mattei</strong><br />
began working construction literally the<br />
day after he graduated from LaSalle University,<br />
Philadelphia. He bought a truck<br />
and some tools, and set out to find small<br />
residential jobs installing windows and<br />
doors, performing repairs and remodeling<br />
interiors for neighbors, relatives and their<br />
friends in Philly’s Roxborough area.<br />
His reputation spread by word of mouth,<br />
and for the next 20 years he easily found<br />
work as the sole proprietor of contracting<br />
business, <strong>Mike</strong> <strong>Mattei</strong> Carpentry.<br />
Although a far cry from his degree in<br />
political science with a pre-law focus, construction<br />
wasn’t an unlikely career path<br />
for <strong>Mattei</strong>, who grew up in a blue-collar<br />
<strong>Mattei</strong>’s recent project, the<br />
interior build-out of Philly’s<br />
historic Bank Building, features<br />
high ceilings and exposed beams.<br />
20 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
•<br />
“There is a sense of<br />
accomplishment in<br />
construction that<br />
is not available in<br />
other work.”<br />
—<strong>Mike</strong> <strong>Mattei</strong><br />
<strong>Mattei</strong> and his new Chevy<br />
Silverado, parked outside<br />
Adams-Bickel Associates<br />
headquarters in Collegeville, Pa.<br />
family. His grandfather was a stonemason,<br />
his father an electrician and his uncle a<br />
steelworker.<br />
“Growing up, besides baseball, football<br />
and basketball, there were mortar pans,<br />
buckets and pavers,” he says. “I grew up<br />
with bricklayers and cement guys. And I<br />
liked it. There is a sense of accomplishment<br />
in construction that is not available<br />
in other work.”<br />
<strong>Mattei</strong> still keeps some of his grandfather’s<br />
old supplies as a valuable reminder of<br />
his family roots. One of his grandfather’s<br />
first construction jobs after immigrating to<br />
the United States in 1916 was building the<br />
Manayunck Bridge, a concrete viaduct for<br />
the Pennsylvania Railroad that spans the<br />
Schuylkill River.<br />
Aside from his family, <strong>Mattei</strong>’s most significant<br />
role model and mentor is his next<br />
door neighbor, a carpenter (now retired)<br />
named Nick Ruggieri, who partnered with<br />
<strong>Mattei</strong> on local jobs and showed him the<br />
ins and outs of the trade.<br />
“Working with Nick was probably one of<br />
the best experiences in my carpentry career,”<br />
<strong>Mattei</strong> says. “He was a well-skilled carpenter<br />
with a lot of integrity. He was at a level above<br />
everyone else I worked for—he was committed,<br />
focused and performed his best every<br />
day. That was a great influence for me.”<br />
Doing What he Loves<br />
<strong>Mattei</strong> began working as a field carpenter<br />
for various residential building and remodeling<br />
firms after he closed his business in<br />
1998.<br />
In 2003, Adams-Bickel Associates<br />
hired him to be the lead finish carpenter<br />
responsible for constructing, installing and<br />
repairing high-quality structures and fixtures<br />
for various commercial projects.<br />
“I was very lucky to find the job, almost
•<br />
M a t t e i<br />
by accident, with Adams-Bickel. I was<br />
happy to find a good company with such<br />
a solid reputation,” he says.<br />
And the company was lucky to find<br />
him. “Overall, he’s a respectful, easygoing<br />
guy—the kind you want on a jobsite,”<br />
Perea says. “He loves being a carpenter;<br />
that’s what he’s always wanted to be. I<br />
wish I had 20 guys like him.”<br />
Adjusting to larger projects in the<br />
commercial sector offered a challenge,<br />
but <strong>Mattei</strong> adapted quickly to his new job<br />
portfolio. “All of my skills are transferable<br />
[to commercial construction],” he says.<br />
The biggest difference he’s noticed is the<br />
wider variety of glass, steel and concrete<br />
materials used on a commercial job compared<br />
to a residential job.<br />
“The learning process never ends in any<br />
aspect of a career,” he continues. “There is<br />
always room for improvement—whether<br />
in construction technique, industry knowledge<br />
or improving relationships.”<br />
He recently performed intricate carpentry<br />
work to convert the interior of<br />
The Bank Building, an historic structure<br />
located on Chestnut Street in Philadelphia’s<br />
Center City, from vacant office space<br />
into high-end condominiums.<br />
Adams-Bickel Associates also focuses on<br />
the institutional segment, building churches<br />
and schools throughout the region.<br />
Without the pressure of managing,<br />
planning, estimating, scheduling and<br />
material procurement as a small-business<br />
owner, <strong>Mattei</strong> appreciates having time to<br />
hone his skills as a professional carpenter.<br />
“When you’re working for yourself,<br />
whatever you miss on a given workday,<br />
you have to make up for by yourself the<br />
next day,” he says. “The pace was really<br />
nonstop. Now, I get to focus on the part I<br />
like most, which is my work in the field.”<br />
an inDustry Mentor<br />
<strong>Mattei</strong>’s second passion is workforce<br />
development. Before being hired at<br />
Adams-Bickel, <strong>Mattei</strong> worked for Viola<br />
<strong>Construction</strong>, Blue Bell, Pa., a company<br />
that encouraged him to begin teaching<br />
part-time at ABC’s Southeast Pennsylvania<br />
Chapter.<br />
Recognizing the dire need for qualified<br />
craft instructors, Adams-Bickel required<br />
<strong>Mattei</strong> to stay on as a carpentry instructor<br />
for the chapter.<br />
22 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
The Bank Building, a historic structure on Philadelphia’s Chestnut Street, <strong>Mattei</strong>’s recent jobsite.<br />
•“Overall, he’s a<br />
respectful, easygoing<br />
guy—the kind you<br />
want on a jobsite.”<br />
—Gus Perea, Adams-Bickel President<br />
<strong>Mattei</strong> enjoys influencing the young carpenters<br />
who are just starting out in the field,<br />
and admires their commitment to completing<br />
a four-year apprenticeship while holding<br />
down a steady construction job.<br />
Under a unique arrangement between<br />
the company and the chapter, <strong>Mattei</strong><br />
takes a break from his regular schedule<br />
to teach Monday daytime classes for first<br />
and fourth-year apprentices, in addition to<br />
evening classes.<br />
“It’s a nice break for me,” <strong>Mattei</strong> says.<br />
“I’m finding a book bag is a lot lighter to<br />
carry than a toolbox.”<br />
<strong>Mattei</strong> also stays active in community<br />
service. Last year, he and a team of carpenters<br />
joined the Bucks-Mont (Pa.) Katrina<br />
Relief Project to build a new daycare center<br />
in hurricane-devastated Waveland and<br />
Bay St. Louis, Miss.<br />
While <strong>Mattei</strong> continues to receive quite a<br />
bit of attention for his award among his peers<br />
and family, he’s trying to remain focused on<br />
the quality and safety of his work.<br />
“I still have responsibilities at work<br />
each day, and I can’t get a big head,” he<br />
says. “For the seven of us finalists, to be<br />
recognized at this level has more to do<br />
with the quality of the companies we work<br />
for and their commitment to teamwork. I<br />
don’t deserve all the credit for what I’ve<br />
accomplished, and I make a point to let<br />
my employers and colleagues know that.”<br />
Perea couldn’t be prouder of his employee.<br />
“<strong>Mike</strong> absolutely deserves this award,” he<br />
says. “<strong>Mike</strong> has been getting a lot of attention<br />
lately, and it’s been exciting. We really<br />
feel that he deserves to get a huge pat on<br />
the back.”<br />
<strong>Mattei</strong> jokes that now that he’s considered<br />
one of the top craft professionals<br />
in the country, the pressure is on. “There<br />
have been some mornings I’m nervous<br />
getting my tools out.”<br />
Pinch is assistant editor of <strong>Construction</strong><br />
<strong>Executive</strong>.
An air horn blast signals to the more than 130<br />
craft professionals it’s time to get down to business.<br />
Hammers bang, equipment purrs and cameras f lash<br />
as judges and spectators—at times numbering more<br />
than 1,200—move in for a closer look. Competitors<br />
try to stay focused and energized as they see all their<br />
hard work and training culminate in one long, loud and<br />
stressful—yet exhilarating—day.<br />
24 |<br />
B y J o A N N A m A s t e r s o N<br />
A Professional<br />
ABC’s<br />
NAtioNAl CrAft<br />
ChAmpioNships<br />
fosters<br />
iNdustry<br />
tAleNt<br />
<strong>Construction</strong> ExEcutivE June 2007
Welders, sheet metal workers, carpenters,<br />
pipefitters and other craft professionals<br />
showed off their skills at the 21st annual<br />
National Craft Championships.<br />
Such is the scene at Associated Builders<br />
and Contractors’ (ABC) National Craft<br />
Championships—an annual event that tests<br />
and celebrates the skills of merit shop craft<br />
professionals from around the nation.<br />
Held in March during ABC’s National<br />
Convention in Nashville, Tenn., the 21st<br />
annual competition featured hands-on<br />
projects in 13 crafts: carpentry, electrical,<br />
fire sprinkler, HVAC, instrumentation fitting,<br />
insulation, masonry, metal building,<br />
millwright, pipefitting, plumbing, sheet<br />
metal and welding. Competitors qualify for<br />
the event based on their performances at<br />
chapter-level competitions. Safety practices<br />
and results from a two-hour written exam<br />
play a part in the final scores as well.<br />
Competitors train for months in their<br />
quest to be at the top of their crafts, and<br />
dozens of behind-the-scenes volunteers—<br />
from committee members to judges, sponsors<br />
and project managers—donate their<br />
precious free time to ensure the event goes<br />
off without a hitch.<br />
“I remember the first year I went to the<br />
National Craft Championships,” says Dickie<br />
Jones, director of human resources for Texasbased<br />
Fluor’s global workforce development.<br />
“I saw all these young men and women go up<br />
to the front of the room during the awards<br />
ceremony, and 2,000 people gave them a<br />
performance<br />
June 2007 <strong>Construction</strong> ExEcutivE | 25
C r A f t c h a m P i o n s h i P s<br />
standing ovation. It gave me chills to realize<br />
this is our future.”<br />
A ViAble CAreer<br />
The future of the construction workforce<br />
is of paramount concern to industry executives<br />
across the country. In fact, recruiting<br />
and retaining qualified employees is the<br />
No. 1 business challenge facing architecture,<br />
engineering and construction firms<br />
in 2007, according to ZweigWhite’s 2007<br />
AEC Industry Outlook.<br />
The U.S. Department of Labor’s<br />
Bureau of Labor Statistics states the construction<br />
industry will need one million<br />
new workers in the next six years and 2.4<br />
million by 2014—data fueled by an imbalance<br />
between the number of baby boomers<br />
retiring and the number of young people<br />
training to be craft professionals.<br />
Jones, who serves as chairman of ABC’s<br />
Craft Championships Committee, says<br />
welders, millwrights, crane operators,<br />
electricians, pipefitters and ironworkers are<br />
particularly hard to come by these days.<br />
“People aren’t exposed to these crafts,” he<br />
says. “As an industry, we have to do a better<br />
Forty-four electricians<br />
competed in the<br />
2007 National Craft<br />
Championships in<br />
Nashville, Tenn.<br />
26 | <strong>Construction</strong> ExEcutivE June 2007<br />
job of presenting our case to the schools.”<br />
A few key words and phrases seem to<br />
surface continually as construction leaders<br />
debate ways to attract workers to the<br />
industry—mentoring, training, investing<br />
in the future and generating a positive<br />
image. The National Craft Championships<br />
touches on all of these issues that<br />
have proved critical to growing the construction<br />
workforce.<br />
“It demonstrates construction as a<br />
viable, first-choice career option,” says<br />
Fred Day, event coordinator for the Craft<br />
Championships Committee and director<br />
of training at Suffolk <strong>Construction</strong> Co.,<br />
West Palm Beach, Fla. “It provides role<br />
models nationally and locally who demonstrate<br />
that pride, craftsmanship and quality<br />
are alive and well in the industry.”<br />
ConfidenCe boost<br />
A welder and pipefitter by trade, Jones<br />
became involved with the event 15 years<br />
ago while teaching construction classes at<br />
Brazosport College in Lake Jackson, Texas.<br />
He has continued to be involved year after<br />
year because of the recognition and support<br />
students receive. “It’s a good possibility<br />
these men and women thought they didn’t<br />
have a future,” Jones says. “I like seeing the<br />
lights go on and their eyes light up because<br />
they get the chance to compete and start<br />
a life. The light might not have gone on if<br />
someone hadn’t pulled the switch.”<br />
The desire to excite people about construction<br />
while maintaining a commitment<br />
to quality work is at the heart of the Craft<br />
Championships Committee. Day says the<br />
group focuses on the big picture of bettering<br />
the industry through dedicated teachers<br />
and committed students who earn an honest,<br />
well-paid living. “We all believe in the<br />
same principles: honor in working with your<br />
hands as a professional craftsperson, dignity<br />
of hard work and the benefits it can provide,<br />
recognition of exceptional talent and respect<br />
for personal standards,” he says.<br />
Volunteer project managers for the<br />
competition, such as HVAC specialist<br />
Mitch Clark of Tri City Mechanical/Comfort<br />
Systems USA, Chandler, Ariz., help<br />
participants overcome weaknesses and generate<br />
more positive attitudes. Clark says the<br />
program allows young craft professionals to
C r A f t c h a m P i o n s h i P s<br />
A masonry competitor<br />
concentrates on his work.<br />
excel in their trades and learn to deal with<br />
pressure situations that will help give them<br />
confidence in their day-to-day activities.<br />
He also asks competitors to teach someone<br />
else a task so they can gain leadership<br />
experience.<br />
Added VAlue<br />
Competitors also become a tremendous<br />
asset to their employers. “The companies<br />
say, ‘We have to hold on to this person<br />
because he competed on a national level.<br />
He has value and we can go to him for<br />
answers,’” Jones says.<br />
He adds that promoting the program<br />
and acknowledging competitors’ training<br />
efforts can help a company increase retention.<br />
Plus, on the recruitment side, other<br />
workers may hear about a company that<br />
treats its employees well and want to apply<br />
for a job there.<br />
For the past seven years, Cliff Wilson,<br />
general superintendent and safety director<br />
at Benchmark <strong>Construction</strong>, Brownstown,<br />
Pa., has volunteered to supervise<br />
apprentices, serve as a judge and design<br />
the carpentry projects for the National<br />
Craft Championships.<br />
“When I interview potential employees<br />
and bring up the subject of our commitment<br />
to and involvement in the Craft<br />
28 | <strong>Construction</strong> ExEcutivE June 2007<br />
Championships, I have their full attention,”<br />
Wilson says. “Our veteran employees<br />
always want to know what happened<br />
at the competition. By being a part of the<br />
program, our tradespeople and management<br />
professionals know our company is<br />
staying on top of our game.”<br />
industry buy-in<br />
In addition to contractors, other companies<br />
seek involvement in the competition<br />
through sponsorships. The most recent<br />
National Craft Championships boasted<br />
more than 50 sponsors that donated time,<br />
money and materials. Square D, a provider<br />
of electrical distribution and industrial<br />
control products, systems and services,<br />
supplied all of the electrical equipment<br />
for the competition.<br />
“We believe in the very things that the<br />
electrical apprentices are judged on during<br />
the competition: jobsite and safety performance,<br />
leadership, professionalism, community<br />
and industry service, and personal<br />
motivation,” says Bill Fischer, program<br />
segment manager for Square D. Not only<br />
does the company believe in playing an<br />
active role in the construction industry, but<br />
the sponsorship allows it to interact with<br />
the industry’s next generation of business<br />
owners.<br />
This face time with craft professionals<br />
and their employers also is invaluable<br />
to Milwaukee Electric Tool, which has<br />
provided tools for the competition for the<br />
past five years. Doug Callies, Milwaukee’s<br />
global training director, says the company<br />
is seeing a return on its investment in the<br />
form of brand loyalty. When competitors<br />
or their employers go out to buy tools, he<br />
says, they look at Milwaukee as one of<br />
their primary choices.<br />
Plus, being a part of the National<br />
Craft Championships allows Callies to<br />
watch a new generation advance their<br />
construction skills. “Personally, I like to<br />
be involved because it’s great to see the<br />
young students evolve and the pride they<br />
take in their work, and that they’ve made<br />
it to a national competition. It’s exciting to<br />
watch them grow.”<br />
Masterson is staff writer of <strong>Construction</strong><br />
<strong>Executive</strong>.<br />
For more information about the 2008<br />
National Craft Championships, to be<br />
held March 6–7 at ABC’s National<br />
Convention in San Juan, Puerto<br />
Rico, visit www.abc.org or email<br />
craftchampionships@abc.org.
A Field of<br />
Lynn SaviLLe/Getty imaGeS<br />
30 | <strong>Construction</strong> ExEcutivE June 2007<br />
New HigHered<br />
Programs<br />
Provide Career<br />
oPtioNs, meet<br />
iNdustry demaNd<br />
for exPerieNCed<br />
graduates
Dreams<br />
If you build it, they will come.<br />
That’s what a few entrepreneurial industry<br />
association leaders and educators discovered<br />
when they stepped up to the plate to address<br />
the construction workforce shortage.<br />
<strong>Construction</strong> employers are desperate<br />
to train and hire skilled people to work as<br />
craft professionals, supervisors and managers.<br />
Instead of waiting for the problem<br />
to solve itself, these industry leaders took<br />
the initiative to create new and innovative<br />
higher education programs that will<br />
prepare the next generation for the myriad<br />
B y L A u r e n P i n c h<br />
career opportunities ahead.<br />
Two new construction programs, the<br />
Northwest College of <strong>Construction</strong>, Portland,<br />
Ore., and Everglades University’s,<br />
Boca Raton, Fla., are helping to fill the<br />
industry’s pressing need for experienced<br />
graduates. Now that the programs are<br />
built, a fresh set of enthusiastic and hardworking<br />
students—with several construction<br />
firms backing them up as mentors—<br />
have come.<br />
Remarkably quickly, recent high school<br />
grads, construction professionals seeking<br />
continuing education and adults setting<br />
out on a new career path enrolled in the<br />
programs, which continue to grow thanks<br />
to positive industry reviews.<br />
The programs use the foundation<br />
established by programs already offered<br />
by groups like Associated Builders and<br />
Contractors (ABC), Associated General<br />
Contractors (AGC), the National Center<br />
for <strong>Construction</strong> Education and Research<br />
(NCCER) and local community colleges.<br />
June 2007 <strong>Construction</strong> ExEcutivE | 31
A f i e l d o fDreams<br />
<strong>Construction</strong> <strong>Executive</strong>s, Meet Your Replacements<br />
if they could, construction employers would clone students like<br />
the ones who participated in associated Builders and Contractors’<br />
(aBC) Student Chapter <strong>Construction</strong> management Competition.<br />
these students possess all the skills needed to take on management<br />
positions left vacant by a retiring baby boom generation.<br />
University of Cincinnati’s (UC) team, for example, topped 23<br />
other college and university teams in the project management/<br />
scheduling, estimating and safety areas of the competition, held<br />
march 21–22 in nashville, tenn.<br />
team captain michael Padgett, a UC senior, says construction<br />
is in his blood. His father and brother both work in the trades, his<br />
cousins work as steel erectors, one grandfather was a carpenter<br />
and the other a draftsman.<br />
Hands-on training and mentorship by seasoned professionals<br />
have helped to prepare students like Padgett for the world of<br />
construction. UC construction management students must complete<br />
a co-op program in which they gain paid field experience at<br />
local construction firms.<br />
Padgett worked with two firms in Cincinnati—messer <strong>Construction</strong><br />
and turner <strong>Construction</strong> Company—performing almost every<br />
management skill imaginable: layout, submittals, scheduling small<br />
jobs, updating documents, attending subcontractors’ meetings,<br />
tracking work-in-place for subcontractors, reporting to the project<br />
manager and superintendent, reviewing pay applications and communicating<br />
with design professionals about RFis and design issues.<br />
Padgett says the ability to form relationships with these professionals<br />
is the primary component of a successful construction<br />
management degree program.<br />
“<strong>Construction</strong> is an art that is constantly evolving, and people<br />
with executive experience in the field are the masters of developing<br />
young project engineers and managers for the industry’s<br />
future,” he says.<br />
in addition to courses in building systems and construction<br />
law, Padgett currently is completing his senior project, which<br />
requires students to develop a business plan and an operations<br />
manual for a fictional construction company. Padgett’s manual,<br />
numbering at least 350 pages, was applied to a proposal for a<br />
$122 million hospital project that received various change orders<br />
and challenging scenarios from his professors.<br />
“there’s nothing comparable to seeing a project from start<br />
From left, Tim Johnson, chairman of ABC’s Workforce Development<br />
Coordinating Committee; UC students Lou Horn, Brad Frey, Jeff Ward,<br />
Kevin Zix, Michelle Podsiadlo, Jessi Metzger, Brandon Seibert and<br />
Michael Padgett; and Bill Fairchild, ABC National chairman-elect.<br />
32 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
to finish,” Padgett says. “it’s simply amazing to see the design,<br />
management and process used to bring an idea, such as a building,<br />
from paper to reality.”<br />
UC Junior Jessi metzger, incoming president of the aBC<br />
student chapter, found her way into construction because it combined<br />
subjects she enjoyed—math and science—with the people<br />
skills necessary for management. Like Padgett, she is gaining<br />
paid field experience.<br />
“the most important thing, i believe, is that UC provides opportunities<br />
for students to get more involved than just the regular classroom<br />
learning,” she says. “When we graduate, we will have seven<br />
quarters of directly related experience on our résumés. there’s not<br />
much that can beat that, especially in a field like construction where<br />
you learn by doing.”<br />
metzger currently is enrolled in structural systems, construction<br />
methods, project costing, advanced construction management<br />
and managerial psychology—all courses that apply to the<br />
real world of construction.<br />
applying their classroom and field knowledge during the<br />
national competition, metzger, Padgett and UC teammates<br />
Brad Frey, Lou Horn, michelle Podsiadlo, Brandon Seibert, Jeff<br />
Ward and Kevin Zix participated in a mock bid-day for an office<br />
building.<br />
teams received subcontractor bids every 15 minutes and then<br />
submitted an overall bid form to the judges. the finalists were<br />
narrowed to five teams that were required to give a presentation<br />
with supporting materials justifying the calculations in their bids.<br />
needless to say, the UC team is thrilled with the win.<br />
“the aBC national Convention was awesome,” metzger says.<br />
“When we realized we were top-five, we marched straight to our<br />
rooms and began preparing for the presentation. We worked nonstop<br />
to be fully prepared for it the next day.”<br />
Padgett adds, “it wouldn’t have been possible to win if it<br />
weren’t for [the whole team’s] dedication and talent.”<br />
<strong>Construction</strong> employers need to act fast to network with these<br />
promising students; many graduates of construction management<br />
degree programs are already receiving job offers. UC construction<br />
management students, like others around the country,<br />
have a 100 percent job placement rate.<br />
the other top-five winners in the aBC <strong>Construction</strong> management<br />
Competition were University of Florida, Brigham young<br />
University, University of Southern mississippi and the Florida<br />
international University.<br />
Colleges and universities participating in the event also included:<br />
auburn University; California Polytechnic State University;<br />
California State University-Chico; eastern Kentucky University;<br />
minnesota State University–mankato; montgomery College;<br />
Pennsylvania College of technology; Purdue University; texas<br />
a&m University; texas a&m University–Commerce; University<br />
of alabama; University of Central Florida; University of Houston;<br />
University of north Florida; University of northern iowa; University<br />
of Washington; University of Wisconsin–Platteville; University<br />
of Wisconsin-Stout; virginia Polytechnic institute and State<br />
University (virginia tech).<br />
For a full list of baccalaureate degree programs accredited<br />
by the American Council for <strong>Construction</strong> Education, visit www.<br />
acce-hq.org/baccalaureateprograms.htm.<br />
—By Lauren Pinch
A f i e l d o fDreams<br />
Meeting needs in the northwest<br />
In 2002, Dan Graham, president of the<br />
Northwest College of <strong>Construction</strong><br />
(NWCC), pitched the idea of forming a new<br />
construction college to Tammy Bachofner,<br />
president of ABC’s Pacific Northwest Chapter.<br />
Graham, then head of AGC’s training<br />
and apprenticeship programs, realized his<br />
association alone couldn’t tackle the industry’s<br />
requests to provide more advanced skills<br />
training. As a result, the two groups formed<br />
a unique partnership to collaborate on construction<br />
education.<br />
Helping to develop Graham’s vision,<br />
Bachofner served as one of the NWCC’s<br />
original steering committee members and<br />
helped the new school gain approval from<br />
the state’s Joint Apprenticeship and Training<br />
( JATC) committees.<br />
In late 2003, the Home Builders Association<br />
of Metropolitan Portland (HBA) and<br />
the National Utility Contractors Association<br />
of Oregon and Southwest Washington<br />
joined the effort to design a feasibility study.<br />
In July 2005, the NWCC was incorporated<br />
as a private, non-profit institution with eight<br />
board members.<br />
After negotiating the purchase of a<br />
commercial building, the school began a<br />
$1 million renovation with Team <strong>Construction</strong><br />
of Vancouver, Wash., as the general<br />
contractor.<br />
The NWCC moved into the facility<br />
in March 2006, and by September 2006,<br />
classes began running full-tilt. Currently,<br />
the NWCC employs 10 full-time staff and<br />
23 part-time instructors who each average<br />
15 years of industry experience. This year,<br />
enrollment averaged about 400 students<br />
each quarter, but by next year, Graham<br />
estimates an enrollment of 470 students<br />
each quarter.<br />
“This is the first partnership among<br />
national construction associations to collaborate<br />
on education in a formalized way,<br />
at a private career school that handles multiple<br />
crafts,” Graham says. “This makes us<br />
unique from other programs.”<br />
The NWCC offers craft, technical,<br />
supervisory and management-level courses<br />
that combine lectures, group interaction<br />
and hands-on training.<br />
The local ABC and AGC chapters<br />
continue to offer their own apprenticeship<br />
programs, but use the NWCC as a means<br />
to further benefit the industry.<br />
“I think we are the wave of the future,”<br />
34 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
Graham says. “We are spending a lot of<br />
energy meeting with high school guidance<br />
counselors and career centers, and we’ve<br />
bused in students to visit from as far as<br />
100 miles away. The word is getting out<br />
that we are here.”<br />
Setting up shop also required a lot of<br />
energy. Classroom spaces needed to be<br />
transformed into laboratories, complete<br />
with machinery like HVAC and welding<br />
equipment, for the various craft specialties.<br />
“No labs had been set up in the facility,<br />
and it was a challenge making the<br />
transition from the community college<br />
curriculum to the National Center for<br />
<strong>Construction</strong> Education and Research’s<br />
[curriculum],” Bachofner says.<br />
“Another hard part was joining together<br />
without losing our own identity as separate<br />
organizations,” she says.<br />
The process of registering with the<br />
state department of education as a career<br />
school, transferring the existing programs<br />
from ABC and AGC, and re-registering<br />
the school with the NCCER was a bit<br />
overwhelming, Graham admits. “A lot of it<br />
was learn-as-you-go. For awhile it seemed<br />
like we were drinking out of a fire hose.”<br />
Several local vendors and craft professionals<br />
donated their time and equipment<br />
to set up the laboratories for the new school.<br />
Other firms offered advice on adjusting the<br />
various craft curriculums to best provide<br />
graduates the skills they’ll need on the job.<br />
For example, New Tech Electrical, Inc.,<br />
Portland, Ore., installed a new electrical<br />
system for the NWCC facility, modified<br />
the power supply to suit institutional rather<br />
Everglades University offers a flexible class<br />
schedule at this Boca Raton, Fla., facility.<br />
than commercial usage, and installed an<br />
up-to-code fire alarm system.<br />
“I think it’s important to give back to<br />
an industry that has given so much,” says<br />
Bob Bachofner, president of New Tech<br />
Electrical (and Tammy’s brother-in-law).<br />
He has been a member of Oregon’s electrical<br />
apprenticeship board for 12 years.<br />
“I’ve always felt a strong interest in trying<br />
to upgrade our apprenticeship programs<br />
and get new programs off the ground to<br />
help the construction industry maintain<br />
its workforce,” he says.<br />
Hunter-Davisson, Inc., Portland, Ore.,<br />
an HVAC company that has been active in<br />
the state’s Area 1 apprenticeship program<br />
for approximately 16 years, volunteered to<br />
participate in the development of the college<br />
as a representative of ABC.<br />
<strong>Executive</strong> Vice President Dean Glover,<br />
who previously taught courses for ABC’s<br />
apprenticeship program and Portland<br />
Community College, paired with Entek<br />
Corporation, Longview, Wash., to codesign<br />
and build HVAC systems for the<br />
remodeled NWCC building. Hunter-<br />
Davisson donated approximately $20,000<br />
in material and labor by doing the job<br />
nearly at cost.<br />
The company is working with several<br />
other firms to improve the school’s HVAC<br />
craft labs and secure more donated materials<br />
and equipment for hands-on training.<br />
Two Hunter-Davisson technicians teach<br />
evening HVAC courses, and President Jeff<br />
Davisson chairs the Area 1 HVAC apprenticeship<br />
program.<br />
“From my perspective, our HVAC<br />
industry requires technicians to have a<br />
broad base of knowledge and training,<br />
including electrical fundamentals, heat<br />
transfer fundamentals, refrigeration cycle<br />
fundamentals, hand tool use, refrigerant<br />
handling and pipefitting,” Glover says.<br />
“I feel it is so important that a technician<br />
be trained properly in all the areas of our<br />
trade. This helps the industry as a whole<br />
and certainly provides the technicians with<br />
a marketable skill set that offers opportunity<br />
and a stable, well-paying occupation.”<br />
Now that the facility exists, the industry<br />
needs to remain proactive in promoting<br />
and developing it. “We can’t wait for<br />
someone else to do our training if we want<br />
it done correctly and thoroughly,” he says.<br />
Other ABC member companies that<br />
participated in developing the NWCC
A f i e l d o fDreams<br />
include American Heating, Inc.; Arjae<br />
Sheet Metal Company, Inc.; HVAC, Inc.;<br />
and Reitmeier Mechanical.<br />
Although it has not yet graduated its<br />
first set of students, and no data exists on<br />
job placement, the NWCC is already a<br />
success story in the construction industry.<br />
With a place of their own to improve their<br />
skills, craft students have a heightened level<br />
of esteem in the industry, Bachofner says. In<br />
addition, the school is bringing more publicity<br />
to the benefits of merit shop training.<br />
“Now, instead of having eight different<br />
training programs, we have one big voice to<br />
promote our training efforts,” she says. “We<br />
show that as a group, [ABC and AGC] are<br />
committed to training beyond the apprenticeship<br />
programs we continue to offer.”<br />
The school is already receiving positive<br />
feedback about its students. In one instance,<br />
a brick masonry apprentice, having recently<br />
learned about preventing brick fluorescence,<br />
helped to save his contractor $80,000 on a<br />
job for Oregon State University.<br />
Graham, Bachofner and the NWCC<br />
board hope the school will become a<br />
model for other associations and academic<br />
institutions.<br />
“The biggest goal I see for the future of<br />
the college is that someone who is thinking<br />
about going into construction first thinks<br />
of the NWCC,” Bachofner says. “Some<br />
students have never even swung a hammer.<br />
Others want to open their own business.<br />
And many just desire some extra management<br />
training to get that promotion.”<br />
Providing Career skills<br />
in the southeast<br />
Everglades University, a not-for-profit<br />
school that offers undergraduate and graduate<br />
degree programs for adult learners, added<br />
a bachelor of science degree program in construction<br />
management in August 2005.<br />
The program is tailored to construction<br />
professionals who are looking for career<br />
advancement while maintaining their current<br />
jobs.<br />
The early seeds for the new program<br />
were planted by the school’s business development<br />
committee and board of trustees,<br />
which took an interest in construction education<br />
for the supervisor or project manager,<br />
as opposed to the architect or engineer.<br />
“Industry professionals from the community<br />
contributed their ideas and voiced<br />
their need for qualified supervisors or proj-<br />
36 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
The Northwest College of <strong>Construction</strong><br />
was built with construction industry<br />
associations’ support.<br />
ect managers who not only have industry<br />
experience, but academic preparation,” says<br />
Dr. Jayne Moschella, vice president of academic<br />
affairs. Many voiced concern about<br />
promoting craftsmen and artisans to management<br />
positions when they lack a business<br />
degree and basic management skills.<br />
The Everglades University program<br />
provides instruction in management as<br />
well as industry-specific technical and<br />
occupational subjects, including planning,<br />
safety, finance, codes, cost estimating, electrical<br />
and mechanical systems, masonry,<br />
ethics and construction law. Students<br />
complete 123 credit hours, including 30<br />
hours in general subjects such as English,<br />
humanities and social sciences.<br />
Like the NWCC, Everglades University<br />
seeks advice from construction experts to<br />
ensure the curriculum is consistently up to<br />
date and meets industry standards. Several<br />
construction firms and associations, including<br />
ABC’s Florida chapters, provided guidance<br />
for the program’s early development.<br />
Students admitted to the construction<br />
management degree program must show<br />
they have some experience in the construction<br />
industry. Because many students hold<br />
full-time jobs, Everglades University offers<br />
flexible day, evening, weekend and online<br />
class schedules. Undergraduate students<br />
take only one class each month, promoting<br />
concentration in each individual class.<br />
Small class sizes provide for individualized<br />
attention and greater interaction between<br />
the students and the faculty.<br />
The new program is gaining attention<br />
within the industry, and students are quickly<br />
signing up. Enrollment grew from 10 students<br />
to 100 within a year and a half.<br />
“We have marketed the program in the<br />
community, but I think it sells itself because<br />
it’s really filling a demographic need. Students<br />
are happy to go to school for something<br />
they already love,” Moschella says.<br />
“The students are very committed, very<br />
involved, and our retention so far is good.<br />
They come in with pride, and they are<br />
excited to be able to bring their own realworld<br />
experiences to the classroom.”<br />
The feedback from employers is positive,<br />
as well. “The industry is chomping<br />
at the bit for our graduates,” she adds.<br />
Several students already have job offers or<br />
internships set up for the summer.<br />
While its main facility is in Boca Raton,<br />
Everglades University has additional branches<br />
in Sarasota and Orlando. The institution is<br />
accredited by the Accrediting Commission of<br />
Career School and Colleges of Technology,<br />
and licensed by the Florida State Board of<br />
Independent Colleges and Universities.<br />
In the future, the university hopes to<br />
move to a traditional campus to gain more<br />
space for students while maintaining small<br />
class sizes and individual attention.<br />
“We want to remain a leader in construction<br />
management education, and we are very<br />
proud of our program,” Moschella says.<br />
The NWCC and Everglades University<br />
serve as a model and inspiration to other<br />
construction associations and academic institutions<br />
to build new programs of their own.<br />
For more information and full course descriptions,<br />
visit www.nwcoc.edu or www.everglades<br />
university.edu.<br />
Pinch is assistant editor of <strong>Construction</strong><br />
<strong>Executive</strong>.
38 | <strong>Construction</strong> ExEcutivE June 2007<br />
Ironically, for many companies,<br />
the seeds for extensive<br />
employment law litigation<br />
exposure are sewn in the best of<br />
times. A company busting at the<br />
seams with business and des-<br />
perate for workers, but with an<br />
under-funded (or nonexistent)<br />
human resources department,<br />
risks lawsuits from a labor and<br />
employment attorney or investi-<br />
gations by the government.
Reducing<br />
B y S c o t t S c h n e i d e r<br />
employment<br />
Risk<br />
Are firmS<br />
neglecting<br />
the humAn<br />
reSourceS<br />
component<br />
of their<br />
operAtionS?<br />
While litigation risk in boom times— ple who file lawsuits share certain person-<br />
or any time, for that matter—can never be ality traits.<br />
eliminated, the following steps can help The application and interview process<br />
an overwhelmed company significantly provides hiring managers an opportunity to<br />
reduce its risk.<br />
identify employees with problematic traits<br />
and screen out the “walking lawsuit.”<br />
Screen Out the ‘Walking laWSuit’ The following information should raise<br />
Lawsuits are not simply a collection of a red flag for hiring managers: the appli-<br />
allegations reduced to writing and served cant changes jobs frequently, has extensive<br />
by a sheriff ’s deputy. In most instances, periods of unemployment, refuses to fill<br />
lawsuits result from combining a certain out the criminal conviction section of the<br />
personality type with a challenging work employment application, has inexplicable<br />
environment. Put another way, many peo- reductions in job responsibilities with an<br />
June 2007 <strong>Construction</strong> ExEcutivE | 39<br />
John Lund/Getty ImaGes
e d u c i n g r i s k<br />
employer, or provides victim-like responses<br />
to questions regarding why he left another<br />
company.<br />
At the very least, these types of<br />
responses should prompt hiring managers<br />
to ask difficult and probing questions.<br />
To their disadvantage, companies des-<br />
40 |<br />
<strong>Construction</strong> <strong>Construction</strong> ExEcutivE June 2007<br />
perate for employees look at the application<br />
and interview process as yet another<br />
painful hoop to jump through, as opposed<br />
to a valuable screening tool. While rushing<br />
through the process certainly satisfies<br />
the short-term need to hire an employee,<br />
it can often lead to difficult long-term<br />
Avoiding the Forbidden Zones<br />
Of Interviewing<br />
By Jim Holland and Jennifer Webb<br />
Interviewing potential employees is like driving down a<br />
highway filled with potholes—there’s danger at every<br />
curve. sometimes interviewers try to make applicants<br />
feel comfortable by asking about their family, outside<br />
interests or background. While these types of questions<br />
are good social icebreakers, they can open up a<br />
company to possible lawsuits. the following checklist<br />
contains some common-sense guidelines to help<br />
avoid the “forbidden zones” of interviewing.<br />
• Age: Inquiries about age, date of birth, date of<br />
graduation from high school or other inquiries<br />
designed to determine a person’s age are inappropriate.<br />
absent a direct nexus to job functions (e.g.,<br />
when federal or state law requires employees to be<br />
18 years of age or older to operate dangerous equipment),<br />
inquiries about age are not appropriate in an<br />
interview.<br />
• Children: Questions about status as a parent, future<br />
plans for children, day care arrangements for existing<br />
children and plans to marry should be avoided.<br />
Inquiring into these aspects of an applicant’s life are<br />
almost always regarded as gender discrimination or<br />
harassment. Interviewers may ask applicants if there<br />
is anything in their life that might interfere with work<br />
hours. For example, asking a female applicant if day<br />
care obligations require a 5 p.m. departure every day<br />
could be considered gender discrimination. asking if<br />
anything about her personal life might interfere with<br />
the performance of occasional overtime, on the other<br />
hand, is neutral and entirely acceptable, so long as<br />
the job features occasional overtime and the inquiry<br />
is made of all applicants.<br />
• Health: disabilities and medical conditions require<br />
sensitive handling. It is generally inappropriate to<br />
inquire about disabilities, diseases or an applicant’s<br />
health status. If this information is volunteered, the<br />
employer may note it. If an applicant indicates he<br />
needs a job accommodation, it is acceptable to ask<br />
questions to clarify any limitations. For example,<br />
asking if an applicant has back problems that<br />
prevent him from lifting heavy equipment and supplies<br />
is inappropriate. It is permissible, however, to<br />
explain that an essential function of the job requires<br />
repeatedly lifting more than 50 pounds. then ask<br />
whether the applicant can perform the<br />
work with or without a reasonable<br />
accommodation.<br />
• Race: ethnicity and citizenship<br />
are not performance-<br />
related and are always<br />
inappropriate. an applicant’s<br />
ethnicity and/or national origin<br />
are completely irrelevant to job<br />
performance and should not be discussed during an<br />
interview. Inquiring about language skills necessary<br />
to the job, however, may be appropriate.<br />
• Religion: Religious beliefs or religious affiliations<br />
generally should not be discussed during interviews.<br />
Interviewers should not promote any particular<br />
religious belief in the workplace. If an applicant says<br />
he engages in a religious observance that would<br />
require an accommodation (e.g., he can’t work on<br />
a particular day), an employer may obtain enough<br />
information to understand the needed accommodation.<br />
all inquiries, responses and processing of this<br />
information should be handled cautiously.<br />
• Unions: asking applicants for their views on labor<br />
unions is inappropriate regardless of a company’s<br />
affiliation with unions.<br />
So, What Can Be Discussed?<br />
Interviewers should focus on job-related topics to<br />
keep themselves out of the forbidden zones. Provide<br />
applicants with information on the company and its<br />
culture, essential job performance requirements and<br />
any appropriate industry standards. Interviewers also<br />
should obtain job-related information from applicants,<br />
such as work experience, educational background,<br />
career objectives and attitude toward the particular<br />
position. Personal information, such as family association,<br />
religious beliefs, family traditions, living arrangements,<br />
marital status, parental status, health and union<br />
views is generally unrelated to work performance and<br />
should be avoided.<br />
Holland and Webb work in the Kansas City, Mo.,<br />
office of Fisher & Phillips, LLP. For more information,<br />
call (816) 842-8770 or visit www.laborlawyers.com.<br />
consequences in the form of employmentrelated<br />
claims and litigation.<br />
avOid hiring illegal alienS<br />
Complying with federal immigration laws<br />
is simple: The knowing employment of<br />
unauthorized aliens is illegal. Failing to
e d u c i n g r i s k<br />
comply can result in action by Department<br />
of Labor investigators and trial attorneys.<br />
To verify an individual’s eligibility<br />
for employment, the employer must<br />
complete an I-9 form. The documents<br />
accepted as part of the I-9 process must<br />
be original documents, and the employer<br />
must perform a reasonable inspection of<br />
the genuineness of each document. If the<br />
documents do not appear to be genuine,<br />
they should not be accepted and the<br />
employee should not be allowed to continue<br />
working.<br />
Pay emPlOyeeS fOr all time WOrked<br />
Employees must be paid for all time<br />
worked and time and a half for more<br />
than 40 hours worked within a week. The<br />
importance of complying with this simple<br />
edict cannot be overstated—during the<br />
past several years an explosion in classwide<br />
wage-hour litigation has occurred.<br />
Companies faced with increased work<br />
and a chronic labor shortage often require<br />
employees to work significant overtime.<br />
Unfortunately, front-line managers—seeing<br />
profits eaten away by extensive overtime<br />
payments—frequently slash legiti-<br />
42 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
mate employee hours from timecards.<br />
Companies must impress upon managers<br />
that not paying employees for all time<br />
worked is unacceptable and unlawful.<br />
Payroll documents should be audited<br />
occasionally to verify employees are being<br />
paid for all time worked. It can be hard<br />
to know on a day-to-day basis how many<br />
hours a particular employee works, but a<br />
quick review of timesheets can highlight<br />
potential problems. For example, written<br />
time entries changed on the sign-in/signout<br />
sheets might indicate an overzealous<br />
manager trying to cut costs by cutting<br />
corners. Similarly, uniform time entries—<br />
working every day from 9 a.m. to 5 p.m.<br />
exactly—can indicate employee time is<br />
not being entered accurately. Almost no<br />
one starts and ends work at the same exact<br />
time every day.<br />
hire a laW firm tO cOnduct<br />
a cOmPliance audit<br />
Literally thousands of pages of employment-related<br />
federal and state laws exist,<br />
and many change on a routine basis. In<br />
addition, federal and state courts routinely<br />
change their interpretations of<br />
well-established laws. During a lengthy<br />
upswing in business, company policies<br />
and practices often languish and are<br />
not reviewed to determine whether they<br />
uphold the law.<br />
Most labor and employment law firms<br />
offer compliance audits, which provide an<br />
extensive review of a company’s policies<br />
and practices to determine compliance<br />
with applicable law. This is the equivalent<br />
of a medical checkup. The audit may reveal<br />
nothing is wrong, but it’s best to identify<br />
a problem before complications arise. At<br />
the very least, the money spent on an audit<br />
will provide peace of mind. The fee pales<br />
in comparison to the time, expense and<br />
effort required to defend against a lawsuit<br />
or administrative investigation.<br />
The profits earned when business is<br />
booming can be lost easily when personnel<br />
matters are neglected. Following these<br />
steps can significantly reduce the risk of<br />
future loss.<br />
Schneider is a partner in the New Orleans<br />
office of Fisher & Phillips, LLP. For more<br />
information, call (504) 529-3844 or email<br />
sschneider@laborlawyers.com.
44 | <strong>Construction</strong> ExEcutivE June 2007<br />
S
B y S t e v e S t o n e<br />
Large<br />
Long Bay Systems Enable<br />
Open<br />
pans<br />
Metal buildings are a popular choice for many applica- manufacturing facilities where interior columns can interfere<br />
tions, representing close to half the commercial and industrial with optimal use of the space.<br />
low-rise, non-residential market. Available in a wide range of A Long Bay System, commonly called LBS, is a cold-formed<br />
building types and roofing designs, metal buildings are cost open web purlin roof framing system that can span distances up<br />
effective, faster to put up than conventional brick and mortar to 65 feet while maintaining the economy of a metal structure.<br />
or wood structures, often consume less labor, and are easy to Installation of a Long Bay System requires less labor than a<br />
insulate for maximum energy efficiency.<br />
traditional bar joist framework.<br />
A metal building with a cold-formed joist roof framing At the heart of the LBS purlin are factory-rolled cords and<br />
system can be an ideal solution for applications that require webs of light-gauge steel formed into virtual square tubular<br />
expansive areas of open floor space for maximized traffic flow, sections. These cords and web members are uniformly fac-<br />
such as warehouses, distribution centers, big box retailers and tory-welded into open joist trusses in dimensions customized<br />
June 2007 <strong>Construction</strong> ExEcutivE | 45<br />
Nick DolDiNg/getty images
ceco BuilDiNg systems<br />
o p E n S p a n S<br />
for each project, and are ready for onsite<br />
bolting rather than field welding. This<br />
well-engineered design results in straight,<br />
sturdy and lightweight members that have<br />
a strong strength-to-weight ratio.<br />
Long Bay Systems enable construction<br />
crews to assemble entire bays—up to 50<br />
feet by 50 feet—on the ground and then<br />
use a crane to raise them into place, in one<br />
piece, bay by bay. The systems offer versatility,<br />
with minimum cost-effective bay<br />
spacing of 30 feet and optimal bay/module<br />
spacing of 50 feet by 50 feet.<br />
The straight lines of the long bay members<br />
are bolted and largely maintained with<br />
just the right amount of give. Field-welded<br />
bar joists, on the other hand, are heavier<br />
and have a less sturdy lateral axis, which<br />
can create problems holding module and<br />
squareness when raised from the ground.<br />
If the LBS modular sections are installed<br />
in alternating bays, with adjacent bays initially<br />
used as corridors for the crane, the<br />
installation can proceed quickly.<br />
This method of construction also is safer<br />
for workers than standard systems using<br />
conventional angle iron bar joists that must<br />
be raised into place individually, temporarily<br />
bolted for safety (as required by the Occupational<br />
Safety and Health Administration<br />
to prevent slipping or falling joists) and then<br />
welded for permanent connection.<br />
The more steel erection done on the<br />
ground, the safer the work crew because<br />
it is standing on a solid surface instead of<br />
hanging in the air tied to fall protection<br />
equipment. The firm footing and easy<br />
access to the components allows construction<br />
to speed along.<br />
Because LBS lengths can extend up to<br />
65 feet, far fewer frames are required than<br />
46 | <strong>Construction</strong> ExEcutivE June 2007<br />
for standard metal building construction.<br />
Furthermore, the bridging is simpler,<br />
adding to labor savings. Whereas a conventional<br />
bar joist system requires 10 runs<br />
of bridging in a 50-foot bay (five on the<br />
bottom and five on the top), a Long Bay<br />
System requires only four runs of bridging<br />
on the bottom. This 60 percent reduction<br />
in the number of runs saves substantially<br />
on the labor costs charged by steel erectors,<br />
who calculate prices based on lineal feet.<br />
These factors combined significantly<br />
reduce installation time and labor. Contractors<br />
and owners in some geographic<br />
areas of the United States may enjoy up to<br />
20 percent savings compared to building<br />
with conventional field-welded bar joists.<br />
Design Flexibility<br />
An LBS featuring purlins compatible with<br />
multiple roof and wall systems gives designers<br />
flexibility in architectural design. For<br />
example, many different types of roofing<br />
systems can be attached to the LBS joists,<br />
including a mechanically seamed standingseam<br />
roof; “B” deck for EPDM (Ethylene<br />
Propylene Diene Monomer, a type of rubber);<br />
single-ply; or built-up roofing.<br />
Because LBS joists are made from lightgauge<br />
cold-rolled steel, installers can use<br />
self-drilling screws for installing the roof,<br />
without requiring additional framing.<br />
Some Long Bay Systems also accept a<br />
variety of compatible wall systems, including<br />
tilt-wall or precast concrete, EIFS (exterior<br />
insulation and finish system) and curtainwall<br />
assemblies, masonry, brick, and insulated<br />
or single-skin metal panels, which are<br />
less costly options than concrete. Framing<br />
can be designed with or without sidewall<br />
columns and optional lateral wall support.<br />
Other streamlining advantages abound<br />
as well. The LBS framework allows easy<br />
installation of mechanical piping, electrical<br />
conduit and other equipment hung from<br />
the joists. For example, mechanics can<br />
attach hangers for pipe and conduit runs<br />
into the LBS members with self-tapping<br />
screws, saving on the number of fastening<br />
components required and the labor needed<br />
to attach each one.<br />
Long bay open web purlin systems can<br />
be used in any area of the country because<br />
the size and depth of the joists can be engineered<br />
to the load and spacing necessary to<br />
accommodate even extreme conditions.<br />
For example, to accommodate snow<br />
loads on a roof with a 65-foot span and<br />
five feet between joists, the depth of the<br />
LBS might be 44 inches. But for a roof in a<br />
southern climate where it does not snow, a<br />
50-foot span could feature a 20-inch depth.<br />
In regions with a lot of snow, specifications<br />
might call for 4-foot centers.<br />
In general, metal buildings are easy<br />
to insulate because the insulation can be<br />
almost as thick as desired. Typically, the<br />
thicker the insulation, the higher the R<br />
value and the lower the resulting energy<br />
costs. It is easy to insulate all the way up to<br />
R 30 without any of the design problems<br />
encountered in conventionally constructed<br />
non-metal buildings.<br />
A well-designed LBS that accepts<br />
multiple wall and roofing systems enables<br />
a structure to achieve an ideal balance<br />
between alignment and functionality. With<br />
the speed and efficiency of pre-engineered<br />
steel buildings, erection cost savings, and<br />
flexibility of roof and wall system designs,<br />
the LBS can be a cost-effective way to create<br />
wide open spaces and provide faster<br />
occupancy for the owner.<br />
Stone is the marketing and sales repre-<br />
sentative for LBS at Ceco Building Sys-<br />
tems, Columbus, Ohio. For more informa-<br />
tion, call (662) 328-6722 or visit www.ceco<br />
buildings.com.
[S p e c I A l S e c t I O n : S A F e t y]<br />
OSHA Inspections<br />
For Consideration in<br />
2007<br />
B y S t e v e B A r n e t t<br />
48 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
From October 2005 to September 2006, the federal Occupational<br />
Safety and Health Administration (OSHA) issued 11,140 cita-<br />
tions during 3,542 inspections of the construction industry<br />
nationwide, resulting in more than $7.5 million in fines. In<br />
this sample, the top five cited standards were scaffolding, fall<br />
protection, ladders, stairways and safety and health programs.
In addition, OSHA’s new hexavalent<br />
chromium standard, which went into effect<br />
last year, will be a focus for OSHA in 2007<br />
and may particularly impact the welding<br />
segment of construction.<br />
Also, each of OSHA’s 10 regions had<br />
at least three Local Emphasis Programs<br />
(LEPs) specific to the construction industry<br />
in 2006.<br />
Finally, Assistant Secretary of Labor<br />
Edwin G. Foulke, Jr., has prioritized<br />
OSHA’s set of cooperative programs, and<br />
contractors may receive an invitation from<br />
OSHA to participate.<br />
Read on for a summary of OSHA<br />
inspections and cooperative programs<br />
that may affect construction operations<br />
this year.<br />
Scaffolding, fall Protection,<br />
StairwayS and ladderS,<br />
and Safety and HealtH ProgramS<br />
Scaffolds—OSHA reports 72 percent of<br />
scaffolding injuries were attributed to the<br />
planking or support giving way, or to an<br />
employee slipping or being struck by a<br />
falling object.<br />
Fall protection—In 2004, the Bureau of<br />
Labor Statistics reported 36 percent of<br />
construction fatalities resulted from falls.<br />
Unstable working surfaces, misuse of fall<br />
protection equipment and human error are<br />
most often to blame for falls, and guardrails,<br />
fall arrest systems, safety nets, covers<br />
and travel restriction systems can prevent<br />
these incidents.<br />
Stairways and ladders—OSHA estimates<br />
almost 25,000 injuries and as many as 36<br />
fatalities per year are due to falls from<br />
stairways and ladders used in construction.<br />
OSHA requirements for both stairways<br />
and ladders are very specific, including<br />
dimensions to the inch of risers, treads,<br />
railings, rungs, cleats and steps.<br />
Safety and health programs—The fifth<br />
most cited violation in the construction<br />
industry from October 2005 to September<br />
2006 was 29 CFR 1926.20, which requires<br />
employers under federal or federally<br />
assisted contracts to initiate and maintain<br />
safety and health programs that provide<br />
frequent and regular inspections.<br />
Rounding out the top 10 OSHA citations<br />
in the construction industry for this<br />
period were electrical wiring design and<br />
methods, head protection, hazard communication,<br />
asbestos, and trenching and<br />
excavations.<br />
new Hexavalent cHromium Standard<br />
The new hexavalent chromium standard<br />
for welding and cutting lowered the Permissible<br />
Exposure Limit (PEL) approximately<br />
ten-fold, from 52 micrograms per<br />
cubic meter to 5 micrograms per cubic<br />
meter with an action level of 2.5. The standard<br />
requires air monitoring, training and<br />
medical surveillance, among other things.<br />
(Workers exposed less than 30 days per<br />
year are exempt from medical surveillance<br />
requirements but not from other requirements<br />
of the standard.)<br />
Airborne concentrations during welding<br />
and cutting of mild steel (chromium<br />
content of less than 1 percent) have been<br />
reported in the range of the new action<br />
level and PEL. Tool steel or recycled steel<br />
made in mini-mills may have a chromium<br />
content of 3 percent to 4 percent, and<br />
stainless steel has a minimum chromium<br />
content of 12 percent. Employers of workers<br />
engaged in welding and steel cutting<br />
should evaluate their procedures in light<br />
of the new standard.<br />
local emPHaSiS ProgramS<br />
LEPs may be implemented by a single<br />
area office or by a regional office. As of<br />
Jan. 8, each OSHA region had at least<br />
three separate LEPs for the construction<br />
industry. The most frequent examples are<br />
construction fall hazards, residential construction,<br />
concrete and concrete products,<br />
silica, and roadway workzone safety and<br />
health. Expect increased programmed<br />
inspections accompanied by outreach in<br />
these areas.<br />
cooPerative ProgramS<br />
Foulke has prioritized OSHA’s cooperative<br />
programs, including consultation services,<br />
the Voluntary Protection Program<br />
(VPP), the Strategic Partnership Program,<br />
the Alliance Program and other OSHA<br />
training, education and outreach programs,<br />
particularly those directed at small<br />
and medium-sized businesses.<br />
Consultation assistance is available on<br />
request and is provided at no cost to the<br />
employer. If the employer fails to correctly<br />
identify hazards within an agreed-upon<br />
time, the issue will be referred to OSHA<br />
June 2007 <strong>Construction</strong> ExEcutivE | 49
[S p e c I A l S e c t I O n : S A F e t y]<br />
enforcement. Participating employers may<br />
obtain an exemption from programmed<br />
inspections (not complaint or accident<br />
investigation inspections) for a period of<br />
one year.<br />
VPP is OSHA’s most comprehensive<br />
cooperative program. Acceptance into<br />
VPP requires application review, onsite<br />
evaluation by OSHA and the employer’s<br />
ongoing achievement of performancebased<br />
goals, such as injury and illness<br />
rates. Participants are exempt from programmed<br />
enforcement inspections but<br />
remain subject to inspections of complaints<br />
or referrals, including referrals<br />
from the onsite VPP team. Participants<br />
will not be cited for violations that are<br />
promptly corrected.<br />
The Strategic Partnership Program is<br />
the newest member of OSHA’s cooperative<br />
programs. Whereas OSHA’s<br />
Consultation Program and VPP entail<br />
one-on-one relationships between<br />
OSHA and individual worksites, strategic<br />
partnerships involve groups of<br />
employers and employees, as is the case<br />
for multi-employer construction sites.<br />
50 | <strong>Construction</strong> ExEcutivE June 2007<br />
Assistant Secretary of labor edwin<br />
G. Foulke, Jr., has prioritized OSHA’s<br />
set of cooperative programs, and<br />
contractors may receive an invitation<br />
from OSHA to participate.<br />
Benefits include reductions in penalties<br />
for violations, deferral from programmed<br />
inspection lists and deletion of other<br />
worksites from programmed inspection<br />
lists following an appropriate number of<br />
onsite enforcement inspections to verify<br />
requirements.<br />
The Alliance Program is open to trade<br />
or professional organizations, businesses,<br />
labor organizations, educational institutions<br />
and government agencies. Few formal<br />
program requirements exist for alliances,<br />
and the agreements do not include<br />
an enforcement component. OSHA offers<br />
a variety of information services, such as<br />
compliance assistance, technical advice,<br />
publications, audiovisual aids and speakers<br />
for special engagements. OSHA has<br />
a variety of materials and tools available<br />
at www.osha.gov, including e-Tools that<br />
help an employer identify requirements<br />
and create written programs and other<br />
required documents.<br />
Barnett is an attorney with Connell Foley<br />
LLP, Roseland, N.J. For more information,<br />
call (973) 535-0500 or email sbarnett@<br />
connellfoley.com.
[S p e C i a l S e C t i o n : S a f e t y]<br />
Keep Safety<br />
In Mind from<br />
The Start<br />
52 | <strong>Construction</strong> ExEcutivE June 2007<br />
B y J e r o m e S p e a r<br />
ontractors often are hired for the technical competency and<br />
skill required to construct a project conceptualized by the owner<br />
and designed by the architect/engineer. Because the construc-<br />
tion project occurs on the owner’s site, the owner potentially is<br />
exposed to additional liabilities, such as Occupational Safety<br />
and Health Administration (OSHA) fines and tort liability.<br />
The question of liability is complex.<br />
Some case law gives owners an incentive<br />
to keep contractors at arm’s length, while<br />
other case law requires owner involvement<br />
that gives rise to additional liability. As a<br />
result, preventing an injury may be the<br />
best way to prevent a lawsuit.<br />
Contractor safety, health and environmental<br />
performance can be improved by<br />
integrating Environmental Health and<br />
Safety (EHS) activities and considerations<br />
into the contracting process, which includes<br />
prequalification and contractor selection,<br />
designing and planning, work-in-progress<br />
assessment and verification and post-<br />
construction performance evaluation.<br />
Prequalification and<br />
contractor Selection<br />
A formal prequalification process is an<br />
important initial step in establishing an<br />
effective contractor EHS program. The<br />
prospective contractor typically provides<br />
the owner with a completed prequalification<br />
questionnaire (PQQ) and supporting<br />
documents and programs. The PQQ iden-<br />
tifies those contracting organizations with<br />
effective safety management systems and<br />
proactive cultures. The completed PQQ<br />
should be evaluated by a review panel<br />
comprising a variety of experts from various<br />
departments in the company. Owners<br />
should consider the following areas of<br />
expertise:<br />
• Safety, health and environmental—Look<br />
at culture, safety systems, regulatory<br />
compliance and safety performance.<br />
• Technical issues—Review organizational<br />
structure, discipline/trade skills and experience<br />
with similar contracts.<br />
• Quality—Evaluate the ability of the<br />
contracting organization to ensure the<br />
integrity and quality of the service.<br />
• Finances—Ensure resources are available<br />
to meet the demands, performance standards<br />
and costs.<br />
Prequalification criteria<br />
The effectiveness of the contractor’s risk<br />
reduction practices should be the basis for<br />
contractor safety prequalification criteria.<br />
Commonly used criteria include:<br />
• Experience Modification Rate (EMR):<br />
The firm’s EMR, calculated by the<br />
insurance industry, is a benchmark<br />
comparing a firm’s loss experience to<br />
the loss experience of all other similar<br />
businesses during a three-year period.<br />
Owners with a formal contractor EHS<br />
program commonly require contractors<br />
to have an EMR of one or lower. The<br />
insurance carrier may use the EMR as<br />
a multiplier to the firm’s workers’ compensation<br />
premium.<br />
• Injury frequency and severity rates:<br />
Specific target injury rates typically are<br />
company-specific and often are revised<br />
(i.e., lowered) periodically by the owner<br />
based on the owner’s contractor safety<br />
goals.<br />
• EHS program evaluations: EHS pro-
ConSidering eHS iSSueS wHile deSigning and<br />
planning a proJeCt Could Have a dramatiC<br />
impaCt on ConStruCtion-related inJurieS.<br />
gram evaluations are time consuming<br />
and more subjective than reviewing<br />
injury statistics, but the evaluators<br />
should base judgment on the presence<br />
or absence of specific EHS management<br />
system elements.<br />
• Integration of EHS on current projects:<br />
The most effective means of evaluating<br />
a contractor’s EHS capabilities is to visit<br />
a jobsite. The prospective contractor also<br />
should be interviewed to assess corporate<br />
safety culture, EHS knowledge, management<br />
skills and philosophy.<br />
• OSHA and Environmental Protection<br />
Agency citation history: A contractor<br />
subject to regular scrutiny by OSHA<br />
should be avoided, as it could increase<br />
the likelihood of OSHA inspections<br />
performed at the owner’s site. OSHA<br />
inspection records are public and can<br />
be obtained by conducting a company<br />
search on the OSHA inspection database<br />
(www.osha.gov/cgi-bin/est/est1).<br />
• References from previous customers: The<br />
owner should talk with previous customers<br />
and determine their satisfaction with<br />
the contractor’s EHS performance.<br />
eHS contract requirementS<br />
Prudent contractors usually include in<br />
their bids the cost of supplying safety<br />
equipment and employee training. Consequently,<br />
their bids may be higher, causing<br />
owners to seek other bids. In other<br />
words, some effective EHS programs go<br />
unrewarded. Owners can change this by<br />
making EHS considerations an integral<br />
part of project management.<br />
Many owners have well-written contractor<br />
EHS programs, and incorporating<br />
these standards as specific contract<br />
requirements should be considered. The<br />
more specific the requirements stated in<br />
the contract, the greater ability the owner<br />
has to ensure work is conducted in a safe<br />
manner.<br />
EHS requirements also should be objectively<br />
stated to avoid ambiguity and interpretation<br />
issues. The project team should<br />
work with legal and contract specialists to<br />
formulate project safety specifications.<br />
Although EHS contract specifications<br />
vary from company to company, and often<br />
from project to project, the following topics<br />
should be considered when developing<br />
EHS requirements:<br />
• name the person responsible for overseeing<br />
contractors’ performances and ensuring<br />
the work is performed in a safe manner;<br />
• require all contractors to prepare and<br />
submit an acceptable EHS plan that<br />
defines supervisory and employee safety<br />
training prior to the start of work;<br />
• list specific published EHS standards<br />
and hazard prevention requirements;<br />
• list special requirements for unique hazards<br />
not adequately defined in the published<br />
EHS standards; and<br />
• list qualifying requirements to ensure<br />
bidders are restricted to contractors with<br />
competent EHS performance records<br />
that include assessments of the contractors’<br />
current EHS capabilities.<br />
deSigning and Planning for Safety<br />
Considering EHS issues while designing<br />
and planning a project could have a dramatic<br />
impact on construction-related injuries.<br />
EHS considerations not addressed<br />
during the initial design phase often cost<br />
significantly more to retrofit or otherwise<br />
correct during the construction phase or<br />
after the project is completed.<br />
The owner’s project team should use<br />
an industrial hygienist or safety engineer<br />
to analyze conceptual project designs and<br />
predict potential hazards. This assessment<br />
allows the project team to eliminate hazards<br />
early on or provide engineering solutions<br />
to efficiently control them during<br />
the construction phase. Solutions could<br />
include specifying temporary decking to<br />
be installed as soon as possible to prevent<br />
falls, relocating utilities, or designing permanent<br />
stairways and walkways to minimize<br />
the use of temporary scaffolding.<br />
June 2007 <strong>Construction</strong> ExEcutivE | 53
[S p e C i a l S e C t i o n : S a f e t y]<br />
Work-in-ProgreSS aSSeSSment<br />
and Verification<br />
A monitoring program typically includes<br />
EHS performance reporting, inspections<br />
by owners and contractors, and incident<br />
reporting. Owners often require contractors<br />
to submit periodic (at least monthly)<br />
reports to track EHS performance. Consideration<br />
should be given to measure<br />
and track both results-based metrics,<br />
such as injuries and incidents, and activity-based<br />
metrics, such as inspections,<br />
audits, job safety analyses, toolbox safety<br />
meetings, number of corrective actions<br />
from audits, and behavior observation<br />
and feedback.<br />
Once the contractor is onsite, the owner<br />
periodically should monitor work practices<br />
and compliance with EHS requirements. If<br />
improper practices are observed, the owner<br />
must take action to ensure the responsible<br />
contractor corrects the situation. From a<br />
legal perspective, the owner is exercising<br />
reasonable diligence.<br />
The frequency of monitoring should<br />
depend on the level of risk. Contractors<br />
should conduct internal EHS inspections<br />
according to their procedures. These selfinspection<br />
reports may be submitted to<br />
54 | <strong>Construction</strong> ExEcutivE June 2007<br />
the owner or made available on request.<br />
A formal system should be established to<br />
review the audit findings with the contractor<br />
to determine corrective actions,<br />
persons responsible for implementing the<br />
corrective action and due dates to ensure<br />
the deficiencies are corrected in a timely<br />
manner.<br />
PoSt-conStruction<br />
Performance eValuation<br />
Owners should conduct a post-construction<br />
evaluation of the contractor’s performance<br />
that incorporates data from the<br />
contractor’s monthly reports, audit findings<br />
and observations. This comprehensive<br />
report can be used to build a database of<br />
contractors for future projects.<br />
In addition, owner and contractor management<br />
teams should complete contract<br />
closeout reports that detail the positive<br />
and negative aspects of the contract and<br />
make recommendations for similar contracts<br />
in the future. If the contractor does<br />
not meet the owner’s expectations and<br />
requirements, a meeting may provide the<br />
contractor an opportunity to discuss the<br />
issues and develop a corrective action plan.<br />
In some cases, the owner may determine<br />
the contractor should be removed from the<br />
approved contractor list.<br />
Successful contracting management<br />
requires the involvement of owner and<br />
contractor representatives. The key to<br />
improving EHS performance is establishing<br />
formal prequalification and contractor<br />
selection criteria and incorporating EHS<br />
requirements into the contract. Because<br />
designing and planning with construction<br />
safety in mind provides the greatest opportunity<br />
to minimize incidents in the field,<br />
formal EHS reviews should be performed<br />
during the designing and planning phases<br />
of the project.<br />
Finally, the contractor’s performance<br />
should be evaluated both during and<br />
upon completion of the project to not<br />
only provide feedback for performance<br />
improvement, but also to determine if the<br />
contractor should be considered for future<br />
projects.<br />
Spear is a member of the American<br />
Industrial Hygiene Association’s Construc-<br />
tion Committee and owner of J.E. Spear<br />
Consulting LLC, Magnolia, Texas. For more<br />
information, call (281) 252-0005 or email<br />
jerome.spear@jespear.com.
[S p e c i a l S e c t i o n : S a f e t y]<br />
OSHA Inspections and Salts:<br />
Minimizing Disruption<br />
nion organizers known as salts who are planted on the payroll<br />
of targeted open shop employers sometimes use jobsite safety<br />
complaints to provoke employers to violate the law. The chal-<br />
lenge for employers is to minimize the salt’s disruption of busi-<br />
ness without violating the law.<br />
The Occupational Safety and Health<br />
Administration (OSHA) prohibits<br />
employers from discriminating against<br />
employees for filing a complaint under<br />
OSHA or any other federal, state or local<br />
law or regulation governing safety and<br />
health in the workplace. It also prohibits<br />
discrimination against employees for lodging<br />
complaints about occupational safety<br />
and health matters with their employer.<br />
The employee need not directly file the<br />
complaint; merely setting into motion<br />
activities that result in the filing of a complaint<br />
is sufficient for the employee to be<br />
protected by OSHA.<br />
OSHA also protects employees who<br />
have testified or are about to testify in<br />
a proceeding regarding an occupational<br />
health and safety complaint. This protection<br />
56 | <strong>Construction</strong> ExEcutivE June 2007<br />
B y J i m p e a S e<br />
extends to employees who make statements<br />
during inspections, investigations or other<br />
administrative or judicial proceedings.<br />
There also is a general prohibition<br />
against discriminating against an employee<br />
for exercising any right afforded to the<br />
employee by OSHA. For example, the<br />
Occupational Safety and Health Act gives<br />
employees the right to request information<br />
from OSHA, be interviewed by OSHA<br />
representatives, talk to a reporter about<br />
workplace safety conditions, cooperate<br />
with a government investigation and participate<br />
in enforcement proceedings.<br />
This protection applies even if additional,<br />
lawful reasons exist for taking<br />
adverse action against an employee. If the<br />
protected reason is a “substantial reason” for<br />
the adverse action, or if the adverse action<br />
would not have been taken “but for” the<br />
protected activity, the adverse action will be<br />
considered unlawful discrimination.<br />
The employee also may be protected by<br />
state or local law. In addition, some states<br />
provide common law causes of action that<br />
protect employees from retaliation. And,<br />
employees may have state statutory claims<br />
for wrongful discharge.<br />
The National Labor Relations Act<br />
(NLRA) also may protect employees who<br />
submit safety complaints. The NLRA<br />
protects the right of all employees to<br />
engage in concerted activities for their<br />
mutual aid and protection. That right<br />
protects activity related to workplace<br />
safety complaints, as long as the activity<br />
is “concerted.”<br />
Concerted activity occurs when individual<br />
employees unite in pursuit of a<br />
common goal, and it involves activity<br />
engaged in with, or on the authority of,<br />
other employees, and not solely by and on<br />
behalf of the employee.<br />
Individual activity may be concerted if<br />
it involves:
• invocating rights provided by a collective<br />
bargaining agreement even though<br />
the employee may not mention that<br />
agreement;<br />
• distributing a union newsletter;<br />
• carrying through on something previously<br />
discussed by a group of employees;<br />
• acting formally or informally on behalf<br />
of a group; or<br />
• initiating, inducing or preparing for<br />
group action even where the individual<br />
is unable to sway the group.<br />
Even though an employee appears to be<br />
engaging in individual activity and makes<br />
no statement that he is acting on behalf<br />
of others, the surrounding circumstances<br />
may inform an employer that activity is<br />
concerted.<br />
The protection provided by the NLRA<br />
is quite similar to that provided by OSHA.<br />
In addition, the NLRA provides employees<br />
with a separate, independent forum—the<br />
National Labor Relations Board—before<br />
which employees may seek relief.<br />
The Power of The oShA<br />
ComPliAnCe offiCer<br />
The following is an example of a salt<br />
situation:<br />
“S” is working for an open shop contractor<br />
on a construction jobsite covered<br />
by OSHA. S complains to OSHA about<br />
unsafe conditions on the jobsite. When the<br />
OSHA inspector arrives in response to that<br />
complaint, S demands to accompany the<br />
inspector on the walkaround. The contractor<br />
does not have a safety committee. What<br />
should the employer representative do?<br />
Whether S has a right to insist on<br />
participating in the opening conference,<br />
the walkaround or the closing conference<br />
of an inspection depends on the OSHA<br />
provisions. OSHA does not expressly give<br />
employees who file a safety complaint the<br />
right to participate in the inspection. But,<br />
OSHA does say that if an employer’s<br />
workers are represented by a union, then<br />
a union-designated representative of the<br />
employees has a right to participate. Or, if<br />
an open shop employer has a safety committee<br />
to which employees select a representative,<br />
an employee representative has<br />
a right to participate.<br />
Because S’s employer is not unionized<br />
and does not have a safety committee, S<br />
has no express right to participate in the<br />
inspection. However, that isn’t the end of<br />
the inquiry.<br />
employerS<br />
win when they<br />
demonStrate<br />
knowledge of<br />
the law, remain<br />
Under control<br />
and refUSe to<br />
Be tricked into<br />
making miStakeS<br />
that make their<br />
companieS<br />
vUlneraBle.<br />
OSHA gives its inspectors, known<br />
as compliance officers, broad authority<br />
to communicate with employees. When<br />
there is no designated employee representative,<br />
the compliance officer is given general<br />
discretion to consult with a reasonable<br />
number of employees during the course<br />
of the inspection. The statute also gives<br />
employees the right to notify the compliance<br />
officer of any OSHA violations during<br />
the inspection.<br />
In addition, the compliance officer has<br />
the authority to permit employee representatives,<br />
in addition to those specifically<br />
authorized by OSHA, to participate<br />
in the walkaround if the compliance officer<br />
believes they will aid the inspection.<br />
If any dispute arises regarding who is an<br />
authorized representative, the compliance<br />
officer has the right to resolve that dispute.<br />
Therefore, OSHA gives the compliance<br />
officer the authority to decide<br />
whether S will be permitted to participate<br />
in the inspection.<br />
If the compliance officer permits S to<br />
participate, S will be protected by OSHA’s<br />
anti-retaliation provisions. And, in view of<br />
the sweeping provisions prohibiting retaliation<br />
against an employee for exercising<br />
rights that are expressed or implied by<br />
OSHA, S’s request to participate in the<br />
inspection will be considered a protected<br />
act even if the compliance officer rejects<br />
the request.<br />
The employer representative may question<br />
S’s participation in the inspection<br />
because OSHA only authorizes collective<br />
bargaining and safety committee employee<br />
representatives to participate, and S<br />
doesn’t fall into either of those categories.<br />
However, in raising such questions, the<br />
employer representative must be careful<br />
not to appear to be retaliating against S for<br />
filing a complaint or asking to participate<br />
in the inspection, or to be trying to cover<br />
up an OSHA violation.<br />
The employer representative also must<br />
be careful not to express or imply animosity<br />
toward a union or toward S. If possible,<br />
when talking to S and to the compliance<br />
officer about the employer’s concerns<br />
about S’s participation in the inspection,<br />
the employer representative should have a<br />
witness present who would be competent<br />
to testify in the event of a dispute about<br />
the employer representative’s response to<br />
S’s request.<br />
The employer representative may<br />
express objective, verifiable reasons that<br />
S would interfere with a fair and orderly<br />
inspection. These include concerns that<br />
S would disrupt the compliance officer’s<br />
attempts to have private conversations<br />
with employees, or that his presence would<br />
discourage employees from being open and<br />
candid with the compliance officer. But<br />
the employer representative should make<br />
it clear he isn’t trying to interfere with the<br />
inspection or prevent the compliance officer<br />
from talking to, or receiving complaints<br />
from, any employee, including S.<br />
If the compliance officer doesn’t permit<br />
S to participate in the inspection, the<br />
employer may not retaliate and should<br />
direct S to return to work.<br />
DeAling wiTh refuSAl<br />
To reTurn To work<br />
If S refuses to return to work, it must be<br />
determined if he is on strike, which may be<br />
a protected activity. Even if S acknowledges<br />
he is not on strike and is not withholding<br />
his services to protest his treatment by the<br />
employer, should S be disciplined?<br />
Employers should recognize that<br />
any disciplinary action taken against an<br />
employee who filed a safety complaint will<br />
be considered highly suspect by OSHA and<br />
the NLRA. Only an employer with an ironclad<br />
case against such an employee should<br />
even consider imposing discipline. This is<br />
particularly true in the case of salts like S<br />
because it is likely S’s primary purpose is to<br />
provoke the employer to do something that<br />
can be shown as unlawful.<br />
The issue for the employer is whether<br />
the failure to discipline S will damage or<br />
undermine its ability to manage employees.<br />
June 2007 <strong>Construction</strong> ExEcutivE | 57
[S p e c i a l S e c t i o n : S a f e t y]<br />
Is disciplining S worth the risk and expense<br />
of litigation?<br />
OSHA regulations make it clear that<br />
employees who exercise their rights under<br />
the act are not protected if they engage in<br />
unprotected activity. However, if an employee<br />
has engaged in protected activity, the burden<br />
is on the employer to prove protected activity<br />
wasn’t part of the reason for the disciplinary<br />
action. It is apparent from case law that the<br />
only way an employer will have a chance of<br />
proving it acted lawfully in disciplining S is<br />
if the employer can effectively show, based<br />
on prior discipline of other employees, that<br />
it would have disciplined S even if S wasn’t<br />
a union organizer and even if S hadn’t exercised<br />
rights under OSHA.<br />
In the absence of a solid case, it’s probably<br />
wise not to discipline S. If it is contended<br />
that the employer discriminated<br />
against an employee, the outcome of the<br />
case will depend on which witnesses the<br />
administrative judge believes. The outcome<br />
of the litigation is uncertain and can<br />
involve substantial back pay obligations for<br />
the employer.<br />
If the employer decides not to discipline<br />
S and he continues to refuse to return to<br />
work, the employer representative may<br />
58 | <strong>Construction</strong> ExEcutivE June 2007<br />
inform him that he won’t be paid for the<br />
time he does not work.<br />
If the employer can show a legitimate<br />
business reason and an absence of discriminatory<br />
motivation, the employer may tell<br />
S to leave the jobsite if he isn’t willing to<br />
return to work. Make it clear that S may<br />
remain in the vicinity of the project (outside<br />
the working area) to be available for<br />
communication with the compliance officer.<br />
This confirms that the purpose for the<br />
employer’s action is not to interfere with<br />
S’s communication with the officer.<br />
An employer has a legitimate basis for<br />
disciplining S (for refusing to comply with<br />
an order to return to work or for engaging<br />
in other unprotected activity) provided<br />
several conditions are met:<br />
• the compliance officer doesn’t reconsider<br />
the denial of S’s right to participate in<br />
the inspection;<br />
• S acknowledges he is not going on strike<br />
or withholding his services to protest his<br />
treatment by the employer;<br />
• no representative of the employer has<br />
engaged in any conduct that could be<br />
used to show the employer has animosity<br />
toward the union or S;<br />
• the employer representative follows all of<br />
the employer’s disciplinary procedures,<br />
including provisions in an applicable<br />
employee handbook or project rules;<br />
• the employer explains to S that he is<br />
engaging in unprotected conduct that<br />
could subject him to discipline including<br />
discharge, and gives S another chance to<br />
comply with the employer representative’s<br />
direction to return to work; and<br />
• the employer can prove it has disciplined<br />
employees in the past for similar misconduct,<br />
and the level of discipline was<br />
at least as great as the discipline imposed<br />
on S.<br />
Salts win when they cause an employer<br />
to discipline them without a valid basis.<br />
Employers win when they demonstrate<br />
knowledge of the law, remain under control<br />
and refuse to be tricked into making mistakes<br />
that make their companies vulnerable.<br />
Pease is a partner with Melli, Walker,<br />
Pease & Ruhly, S.C., Madison, Wis. For<br />
more information, call (608) 257-4812 or<br />
visit www.melliwalker.com.<br />
For a list of regulations, visit www.<br />
osha.gov/comp-links.html.
R i s k M a n a g e M e n t<br />
b y R o n e b e R t<br />
<strong>Construction</strong> executives who<br />
buy construction risk policies and simply<br />
allow the insurance carrier to “handle<br />
the rest” should consider becoming more<br />
involved in their overall risk management<br />
strategy.<br />
While insurance policies always will play<br />
a major role in the overall risk management<br />
programs of construction executives, consider<br />
these 10 steps to mitigate risk, reduce<br />
costs and increase the bottom line:<br />
1. Evaluate and analyze existing risk<br />
management programs. Assess where the<br />
company now falls in the following areas:<br />
• safety and loss prevention;<br />
• claims monitoring and<br />
review;<br />
• contractual risk transfer;<br />
and<br />
• marketing of policies.<br />
2. Work closely with a risk<br />
management professional<br />
or broker to establish the<br />
company’s criteria and<br />
goals. Implement best practices<br />
and consider what other<br />
similar companies have done<br />
successfully with their risk<br />
management programs.<br />
3. Establish across-the-board benchmarks,<br />
working with a risk management<br />
professional in the areas of safety and loss<br />
control. Conduct toolbox talks at jobsites<br />
on a different safety issue each week, and<br />
implement incentive programs for operating<br />
safely.<br />
Make safety a part of the company’s<br />
culture and let employees know their wellbeing<br />
is of utmost importance.<br />
4. Recognize the impact of indirect costs.<br />
Think of the iceberg analogy: The layer<br />
below the water—the indirect costs of a<br />
60 | <strong>Construction</strong> ExEcutivE June 2007<br />
Ten Steps to Reducing<br />
The Cost of Risk<br />
claim to the company—can wind up costing<br />
up to three times what was paid out by<br />
the insurance carrier. These indirect costs<br />
can include downtime on the job after an<br />
injury, staff time spent dealing with an<br />
injured employee and a claims adjuster,<br />
and insurance premium increases as a<br />
result of the claim.<br />
5. Have plans in place for injured workers.<br />
Establish return-to-work programs<br />
and develop relationships with competent<br />
medical providers.<br />
6. Perform a thorough review of contracts<br />
and policies. Do<br />
they meet the company’s<br />
needs and contractual<br />
obligations? Make sure<br />
exclusions are not in place<br />
that leave the company<br />
exposed. Know the risk<br />
involved when signing<br />
a contract. Owners and<br />
general contractors are<br />
not the only ones trying<br />
to push away risk; insurance<br />
carriers are becoming<br />
more conservative<br />
with the coverages they<br />
offer as well.<br />
Protect the<br />
company’s risk<br />
management<br />
program as<br />
if it were<br />
an asset.<br />
7. Be mindful that everyone involved<br />
in a project attempts to push away risk.<br />
The general contractor tries to push it in<br />
the direction of the subcontractor, and the<br />
subcontractor pushes it back at the general<br />
contractor or toward its subcontractors.<br />
8. Develop an effective claims management<br />
program. Work with the broker’s<br />
claims department to monitor and manage<br />
all open claims for each line of insurance.<br />
Conduct review meetings at least<br />
quarterly to discuss the status of open<br />
claims, the carriers’ reserves and prevention<br />
techniques.<br />
9. Select a broker specializing in construction<br />
insurance. Find a construction<br />
risk management professional who has the<br />
following client advocates (independent<br />
from the insurance carrier) on its team:<br />
• risk control consultant;<br />
• claims department; and<br />
• nurse case manager for workers’ compensation<br />
claims.<br />
Carriers are more willing to work with<br />
a broker who can offer these services to<br />
clients because it helps reduce losses for<br />
all parties involved.<br />
10. Market the program carefully. Protect<br />
the company’s risk management program<br />
as if it were an asset. Remember, a<br />
contractor cannot control the insurance<br />
marketplace, but it can control how the<br />
company is treated in it. Go to the marketplace<br />
with a disciplined approach and<br />
do not go every year. Insurance carriers<br />
become weary of a company they see<br />
quoting each year and may offer an ordinary<br />
quote, or none at all.<br />
Work closely with a broker to identify<br />
what carriers are a good fit and then work<br />
professionally with those carriers. With the<br />
industry seeing a “soft” insurance market,<br />
contractors may have an advantage when<br />
the risk management professional is obtaining<br />
coverage and pricing from a carrier.<br />
The job of an insurance broker is to<br />
make a contractor as competitive as possible<br />
on bid day. These 10 steps will help<br />
construction executives get there.<br />
Ebert is a vice president in the construction<br />
division of Exton, Pa.-based EHD, a partner<br />
of Assurex Global. For more information, call<br />
(610) 280-0410 or email rjebert@ehd-ins.com.
w o r k f o r c e d e v e l o p m e n t<br />
b y n o e l s . w h e e l e r<br />
Unexpected project delays<br />
like late deliveries, permit applications,<br />
zoning changes, extreme weather conditions<br />
and crew absences create a domino<br />
effect that put a strain on manpower<br />
resources and create larger gaps between<br />
projects or sudden increases in workload.<br />
Regardless of a workforce situation,<br />
owners still expect jobs to be done on time<br />
and on budget. Contractors constantly<br />
perform a balancing act to get back on<br />
track during the busy times and maintain<br />
cash flow during the down times, often<br />
conceding to more out-of-pocket costs<br />
and lower profits.<br />
Here are seven ways partnering with<br />
a specialty staffing company can result<br />
in more time, more projects and more<br />
money.<br />
62 | <strong>Construction</strong> ExEcutivE June 2007<br />
Increasing Profitability<br />
With a Skilled<br />
Trades Staffing Company<br />
1. Reduce time and incRease<br />
the RetuRn on investment<br />
By the time a contractor decides to hire<br />
more people, chances are its projects are<br />
already behind schedule. The time required<br />
to decide on a recruitment plan, advertise,<br />
interview, assess skills, select a candidate<br />
and make the hire can cause a project to<br />
fall further behind. A skilled trades staffing<br />
company can replace weeks of time spent<br />
on advertising, recruiting, interviewing,<br />
reference-checking and skill-assessing.<br />
2. Reduce the inheRent Risk in hiRing<br />
Many contractors do not have clear qualification<br />
and hiring standards. The “I know<br />
’em when I see ’em” or “wait until we get<br />
him on the job to see if he’s any good”<br />
approaches will cost money in the long run<br />
and may prevent the company from getting<br />
the best person for the job.<br />
Specialty staffing companies know how<br />
to effectively evaluate skills and work history<br />
to find the right tradespeople. They<br />
also can help a contractor navigate employment<br />
law guidelines and lift the human<br />
resources responsibility, liability and risk<br />
from a contractor’s shoulders.<br />
3. cRew Retention incentives<br />
Because tradespeople are employed by<br />
staffing companies, a contractor does not<br />
have to worry about hiring incentives,<br />
benefits packages, bonus metrics or retention<br />
programs, allowing more time to find<br />
projects and run the business.<br />
4. Flexibility<br />
A crew cannot be in two places at one time.<br />
A skilled trades staffing company can help<br />
handle unexpected manpower shortages or<br />
increases in workload as needs arise.
w o r k f o r c e d e v e l o p m e n t<br />
During slow times, many contractors<br />
struggle with the decision to either maintain<br />
the extra manpower costs to keep their<br />
crew or perform layoffs that may leave the<br />
company short when the busy season starts<br />
again. More flexibility in staffing makes<br />
this decision unnecessary.<br />
5. building cRews<br />
Some contractors take the flexibility<br />
advantage a step further with a core<br />
employee approach. Contractors can use a<br />
specialty staffing company to build larger<br />
crews around a few trusted core employees,<br />
without the extra administrative costs of<br />
hiring additional employees. A no-hassle<br />
expansion of the crew helps a contractor<br />
meet critical deadlines or take on more<br />
projects, bringing in more profits. Promoting<br />
key personnel to crew leaders also<br />
helps grow the business structure.<br />
6. Planned staFFing<br />
Contractors plan deliveries of supplies and<br />
future equipment purchases for their projects,<br />
so why not also plan for workforce<br />
needs? Preparing manpower needs with a<br />
64 | <strong>Construction</strong> ExEcutivE June 2007<br />
staffing company ensures recruitment of<br />
the specific tradespeople when needed to<br />
get the job done right and on time.<br />
7. exPanding business<br />
A contractor can diversify construction<br />
services with help from a staffing company<br />
that hires all types of tradespeople.<br />
For example, staffing companies can<br />
help commercial contractors expand their<br />
portfolio to the residential or remodeling<br />
sectors without the added hiring and<br />
training costs associated with building new<br />
expertise.<br />
choose a staFFing FiRm<br />
Take time to research and grade different<br />
staffing firms on their skills, performance<br />
and knowledge of the construction<br />
industry. Ask for references or visit<br />
jobsites to evaluate the workmanship of<br />
the tradespeople.<br />
Consider the following when evaluating<br />
a specialty staffing firm:<br />
• What is the background of the agency’s<br />
staff? Do they know and understand the<br />
industry?<br />
• How does the agency screen and select<br />
trade employees? What skill tests and<br />
standards are used?<br />
• What kind of safety or insurance program<br />
does the agency have? What is its<br />
workers’ compensation mod rating?<br />
• What kind of service will the agency<br />
deliver? Does it promptly return phone<br />
calls? Is there a satisfaction guarantee?<br />
Consider the hard costs of recruiting,<br />
advertising, interviewing, hiring, payroll<br />
processing, workers’ compensation and<br />
unemployment insurance associated with<br />
hiring a crew. Also consider the soft costs:<br />
downtime on the job, project delays, skills<br />
assessment, staff turnover and lost opportunities.<br />
The combined cost is substantial.<br />
Removing “managing people” from a<br />
contractor’s job description leaves more<br />
resources to focus on winning projects,<br />
increasing profitability and growing the<br />
business.<br />
Wheeler is president and CEO of CLP<br />
Resources, Inc. For more information, call<br />
(800) 225-5257 or visit www.clp.com.
around the<br />
natıon By Lauren Pinch<br />
Maine<br />
Study Draws Attention<br />
To Independent Contractor<br />
Classification<br />
As many as 11 percent of the state’s construction<br />
workers are misclassified as independent<br />
contractors, according to a report<br />
published by the University of Maine’s<br />
Bureau of Labor Education (BLE).<br />
The report draws on studies independently<br />
conducted by Harvard University,<br />
the University of Massachusetts at Boston,<br />
the U.S. Department of Labor and the<br />
Maine Department of Labor (DOL).<br />
The report found one out of seven con-<br />
66 | <strong>Construction</strong> ExEcutivE June 2007<br />
struction employers misclassified workers<br />
between 1999 and 2002, and each of these<br />
firms misclassified an average of 45 percent<br />
of their employees.<br />
Because independent contractors are<br />
considered self-employed, a firm is not<br />
required to pay their health insurance,<br />
taxes or workers’ compensation.<br />
The practice, according to BLE,<br />
results in lost benefits, lost bids for<br />
employers that properly classify their<br />
employees and lost revenue for the state<br />
and federal governments.<br />
For example, the Maine DOL found<br />
that in 2005 the state lost nearly $60,000<br />
in underreported unemployment taxes for<br />
970 misclassified construction employees.<br />
Some groups, including Associated<br />
Builders and Contractors’ Maine Chapter,<br />
dispute the study because it assumes<br />
that employers, not employees, are entirely<br />
responsible for the misclassification, when<br />
in fact many independent contractors prefer<br />
to remain self-employed.<br />
Missouri<br />
Governor Restricts PLAs<br />
On State-Funded Projects<br />
On April 11, Missouri Gov. Matt Blunt<br />
(R) signed the Fairness in Public <strong>Construction</strong><br />
Act (S.B. 339), a measure that<br />
prohibits the state from requiring bidders<br />
on public construction projects to enter<br />
into agreements with labor organizations<br />
when the project receives more than half<br />
of its funding from the state.<br />
In a vote of 145-7, the Missouri House<br />
of Representatives approved the legislation<br />
on March 14; the Missouri Senate<br />
approved the bill 33-0 in February.<br />
Even when a project receives less<br />
than half of its funding from the state,<br />
public entities will be required to complete<br />
a public hearing and appeals process<br />
when seeking a union-only project<br />
labor agreement.<br />
The measure also works to curtail the<br />
collection of job-targeting funds on public<br />
construction projects, a practice in which<br />
funds are collected from union employees<br />
on prevailing wage projects for the purpose<br />
of reimbursing or rewarding contractors<br />
that use union labor. Specifically, S.B. 339<br />
“bars contractors and subcontractors from<br />
receiving subsidies, supplements or rebates<br />
if the practice reduces the wage rates paid<br />
by the employer on a given occupational<br />
title below the prevailing wage rate.”<br />
Merit shop contractors and Associated<br />
Builders and Contractors’ Heart of<br />
America Chapter strongly supported the<br />
legislation, working to secure approval for<br />
similar measures in both 2005 and 2006.<br />
The law will take effect in August.<br />
West Virginia<br />
State Passes Legislation<br />
Affecting <strong>Construction</strong><br />
Employers<br />
Three new bills affecting the construction<br />
industry, signed April 3 by Gov. Joe<br />
<strong>Construction</strong> <strong>Executive</strong> Wants Your News!<br />
If you would like to share company news of national interest,<br />
send your information to:<br />
Lauren Pinch, assistant editor<br />
<strong>Construction</strong> <strong>Executive</strong>, 4250 North Fairfax Drive, 9th Floor,<br />
Arlington, Va. 22203, or email pinch@abc.org.
Manchin (D), take effect this<br />
month.<br />
S.B. 70 penalizes employers<br />
that knowingly hire undocumented<br />
workers, with fines<br />
ranging from $1,000 to $10,000,<br />
possible criminal penalties and<br />
possible loss of business license.<br />
The legislation also gives labor<br />
commissioners the authority to<br />
perform inspections of a construction<br />
firm’s employment<br />
documents.<br />
Under H.B. 2945, firms that<br />
employ construction apprentices<br />
will receive a state tax credit of<br />
$1 an hour, with a maximum of<br />
1,000 hours allowed for credit<br />
each year. With approximately<br />
1,800 construction apprentices<br />
in the state, the value of the tax<br />
credit is estimated at $1.8 million<br />
a year.<br />
S.B. 416 establishes fines<br />
and misdemeanor offenses<br />
for any employer or employee<br />
who attempts to alter a drug or<br />
alcohol screening test.<br />
AMEC Receives SBA’s Eisenhower Award<br />
KUDOS<br />
International engineering and project management firm AMEC won<br />
the 2007 Dwight D. Eisenhower Award for Excellence in the construction category from the U.S.<br />
Small Business Administration (SBA). The award was presented to AMEC’s Earth & Environmental<br />
Division in Washington, D.C., on April 23, during Small Business Week. The national award, named<br />
for the president under whose administration the SBA was founded, honors large federal prime<br />
contractors that have excelled in working with small businesses as suppliers and subcontractors.<br />
Only one contractor is chosen for the award in each of five categories (construction, research and<br />
development, manufacturing, services and utilities) from a pool of 2,500 eligible large contractors.<br />
AMEC’s Earth & Environmental Division provides environmental, engineer-design and construction<br />
management services at U.S. military installations, with projects ranging from airfield hangars<br />
and runways to military barracks.<br />
Suffolk <strong>Construction</strong> Company Named ‘Business of the Year’<br />
Suffolk <strong>Construction</strong> Company was named “Business of the Year” in South Florida by the South<br />
Florida Business Journal for construction and engineering firms with revenues exceeding $25 million.<br />
A panel of judges selected Suffolk <strong>Construction</strong> based on the company’s revenue growth, job<br />
creation, commitment to employees and community involvement.<br />
Suffolk <strong>Construction</strong> has more than 250 employees who, in 2006, helped the company increase<br />
net profits by 15 percent on almost $350 million in gross revenue. The company prides itself on<br />
employee training. Suffolk’s senior managers teach 90 percent of all classes and attend a “train the<br />
trainer” course, and the company provides a two-year training program for managers. All employees<br />
are eligible for employee referral, job performance and discretionary bonuses. Suffolk also<br />
places a high priority on civic involvement.<br />
Its project portfolio includes educational, retail, residential, health care, commercial, biomedical<br />
and public work.<br />
June 2007 <strong>Construction</strong> ExEcutivE | 67
product<br />
gallery<br />
Norcross Safety<br />
Products’ Knee Boot<br />
The new Servus CT Knee Boot from<br />
Norcross Safety Products provides<br />
enhanced fit and comfort by conforming<br />
more precisely to the shape of the<br />
foot, especially across the instep and<br />
around the heel. Available in steel toe<br />
and plain toe models, the seamless,<br />
waterproof boot comes in graduated<br />
heights so the height of the boot is<br />
appropriate to the size of the foot. It also features<br />
a scalloped top that is higher in the front and lower in the back, helping<br />
reduce worker fatigue and irritation at the back of the leg.<br />
A Foot Form insole offers added support and cushion, and the indoor/outdoor<br />
outsole provides a stable base for walking and standing.<br />
The ergonomic frame design increases lateral stability, while the interior<br />
lugs provide traction and durability. For more information, call (800)<br />
777-9021 or visit www.nspusa.com.<br />
Gateway Safety’s Serpent Helmet<br />
The new Serpent ventilated safety helmet from Gateway Safety, Inc.<br />
helps keep workers cool while protecting them from harsh environments.<br />
Featuring the CoolSense Air Flow System, the helmet has six strategically<br />
designed vents along the peak of the head that allow heat to<br />
escape. Additional comfort features include a soft, six-point nylon<br />
suspension for impact absorption and a cushioned brow pad<br />
for absorbing moisture. Available in 10 colors, the helmet is<br />
manufactured from a high-density polyethylene material and<br />
weighs about 13 ounces. For more information, call (800)<br />
822-5347 or visit www.gatewaysafety.com.<br />
68 |<br />
<strong>Construction</strong> ExEcutivE June 2007<br />
Guardair’s Safety Air Guns<br />
Guardair Corporation’s new Lazer 600 series of Safety Air Guns<br />
feature a unique comfort-grip design that reduces operator<br />
fatigue. The curved, over-molded actuating<br />
lever with non-slip surface disperses force and<br />
reduces pressure points on the hand. The guns<br />
also have an integrated hanging hook convenient<br />
for storage and retrieval. Useful in all types of industrial<br />
cleaning applications, the new air guns meet the Occupational<br />
Safety and Health Administration’s 1910.242(b)<br />
standard regarding output pressure. For more information,<br />
visit www.guardaircorp.com.<br />
Willson Safety Products’<br />
Safety Eyewear<br />
Willson Safety Products offers two<br />
new lens tints for its recently released<br />
A800 Series of safety eyewear. With a<br />
scratch-resistant coating,<br />
the lenses offer highimpact<br />
protection. In<br />
addition, the lightweight<br />
eyewear features a nonslip<br />
nosepiece and built-in<br />
flex along the temple for<br />
increased tension control.<br />
The yellow color of the amber lens lowers the haze associated<br />
with blue light, enabling clearer vision when used in gray conditions,<br />
such as working outdoors at dusk or in fog. The new blue mirror tint is<br />
recommended for outdoor construction, landscaping and utility work.<br />
It reduces eyestrain and fatigue associated with sunlight and glare,<br />
and absorbs 99.9 percent of UVA and UVB radiation while allowing 15<br />
percent of available light to pass through. For more information, call<br />
(800) 682-0839 or visit www.willsonsafety.com.<br />
Kimberly-Clark<br />
Professional’s Latex<br />
Coated Gloves<br />
Geared toward industrial workers,<br />
the new Kleenguard G40 Latex<br />
Coated Gloves from Kimberly-<br />
Clark Professional have a high<br />
tear rating and are manufactured to<br />
reduce latex proteins. The gloves use<br />
a latex coating over a comfortable<br />
poly-cotton liner to provide enhanced<br />
dexterity and grip, as well as hand<br />
protection. For more information, visit<br />
www.kcprofes- sional.com.
[S a f e t y & W e l l - b e i n g]<br />
The Bilco Company’s Hatch Railing System<br />
The new BIL-Guard Hatch Railing System from The Bilco Company provides permanent fall<br />
protection for hatch openings. The yellow guardrail mounts directly to the capflashing of any<br />
brand of roof hatch and satisfies Occupational Safety and Health Administration standard CFR<br />
1910.23.<br />
Utilizing an attachment system that<br />
does not penetrate the roofing membrane,<br />
the BIL-Guard can be installed<br />
using basic tools and features a quickmount<br />
bracket and a pivoting mounting<br />
sleeve. The system, constructed<br />
of a durable fiber reinforced polymer<br />
material and corrosion-resistant hardware,<br />
comes in a variety of sizes and<br />
features a self-closing gate. For more<br />
information, call (203) 934-6363 or visit<br />
www.bilco.com.<br />
Cover Guard’s Temporary Protective Materials<br />
Originally marketed to the marine industry, Cover Guard’s Temporary Protective Materials are<br />
now available for use in the construction industry. The<br />
reusable polyethylene film protects hard, non-porous<br />
surfaces, such as carpet, vinyl, wood, steel, poured resin<br />
floors, marble and stone. The product comes in a variety of<br />
widths and thicknesses, offering durable protection against<br />
impacts, indentations and markings. The flame-retardant,<br />
waterproof materials also are resistant to most chemicals,<br />
paints, dirt, dust and debris. For more information, visit<br />
www.coverguard.com.<br />
June 2007 <strong>Construction</strong> ExEcutivE | 69
productgallery [S a f e t y & W e l l - b e i n g]<br />
Ergodyne’s Trex Footbeds<br />
Trex Footbeds, the newest addition to Ergodyne’s protective<br />
footwear line, provides workers with the support<br />
and shock absorption needed to help keep feet<br />
comfortable and the knees, hips and back aligned.<br />
The shoe inserts, which replace a standard insole,<br />
allow feet to relax by supporting multiple points of<br />
contact while reducing stress on the rest of the body.<br />
Available in economy, standard and high-performance<br />
models, each insert features a deep heel and high<br />
arch to keep the foot in a comfortable position.<br />
Trex Footbeds’ ventilation system maximizes<br />
airflow under the foot and an antimicrobial treatment<br />
fights against the bacteria, yeast, fungi and mold that<br />
can grow in work boots and shoes. Made from topgrade<br />
materials, the inserts fit men and women up to<br />
size 15½. For more information, call (800) 225-8238 or<br />
visit www.ergodyne.com.<br />
ADVERTISER PAGE<br />
Acton Mobile Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7<br />
www.actonmobile.com • 866-931-9319 • fax: 410-931-3468<br />
Allied North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C4<br />
www.alliedna.com • 800-431-2584<br />
American Fence Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12<br />
www.americanfenceassociation.com • 800-822-4342<br />
Aon <strong>Construction</strong> Services Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C3<br />
www.aon.com/construction • 888-678-7310<br />
Blue Book of Building and <strong>Construction</strong>, The . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3<br />
www.thebluebook.com • 800-431-2584 • fax: 914-245-0288<br />
Calculated Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67<br />
www.calculated.com • 775-885-4900 • fax: 775-885-4949<br />
CBIZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55<br />
www.cbiz.com • 800-ASK-CBIZ (275-2249)<br />
CENTRIA Architectural Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21<br />
www.CENTRIA.com • 800-759-7474<br />
Chevy Truck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Insert<br />
www.chevy.com<br />
CLP Resources, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37, 63<br />
www.clp.com • 800-CALL-CLP • fax: 800-475-7925<br />
Drewry, Simmons, Vornehm LLP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50<br />
www.drewrysimmons.com • 317-580-4848 • fax: 317-580-4855<br />
EarthCam, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58<br />
www.earthcam.net • 800-EARTHCAM • fax: 201-488-1119<br />
Everglades University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42<br />
www.evergladesuniversity.edu • 561-912-1211 • fax: 561-912-1191<br />
Exaktime, Inc. — JobClock System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15<br />
www.jobclock.com • 888-788-8463 • fax: 818-222-6148<br />
Foundation Software Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43<br />
www.foundationsoft.com • 800-246-0800 • fax: 330-220-1443<br />
GeoStructures, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5<br />
www.geostructures.com • 877-846-3165<br />
InSite Software Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54<br />
www.insitesoftware.com • 877-746-7483 • fax: 585-359-9252<br />
Kenwood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27<br />
www.kenwood.com • 800-950-5005<br />
70 | <strong>Construction</strong> ExEcutivE June 2007<br />
SJ2 Industries’ Original 3rd Hand<br />
The Original 3rd Hand, a circular saw lower guard retractor device from<br />
SJ2 Industries, helps keep carpenters from pinning their guards. The<br />
design employs a thumb lever that allows operators to lift the lower<br />
saw guard with their trigger finger while keeping both hands on the<br />
saw. Made of durable plastic, aluminum and steel, the device can be<br />
installed in less than five minutes and adds less than 8 ounces to the<br />
saw. The Original 3rd Hand is flame retardant and rust resistant, and<br />
meets Occupational Safety and Health Administration standards. For<br />
more information, visit www.the3rdhand.com.<br />
Silent<br />
Knight’s<br />
Fire Alarm<br />
Control<br />
Panel<br />
The new IntelliKnight<br />
5808 Fire Alarm Control<br />
Panel from Silent<br />
Knight offers built-in<br />
digital communication that allows reporting<br />
of all system activity to a remote monitoring<br />
location. Made for small to mid-size institutions<br />
and commercial sites, the control panel<br />
supports up to 127 addressable devices that<br />
allow users to pinpoint which device has been<br />
activated or needs attention. It also uses<br />
drift compensation, maintenance alert and a<br />
distributed power scheme to simplify installation<br />
and reduce wiring requirements. For more<br />
information, visit www.honeywell.com.<br />
ADVERTISER PAGE<br />
MC2 Management Computer Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47<br />
www.mc2-ice.com • 800-225-5622 • fax: 901-682-8118<br />
Meridian Systems, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13<br />
www.meridiansystems.com • 800-850-2660 • fax: 916-294-2001<br />
Motorola, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33<br />
www.proventough.com/ce<br />
National Demolition Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35<br />
www.demolitionassociation.com • 800-541-2412 • fax: 215-348-8422<br />
National Center for <strong>Construction</strong> Education and Research (NCCER) . . . . . . . . . . . . . . . .51<br />
www.nccer.org • 888-NCCER20 (622-3720)<br />
OxBlue Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49<br />
www.oxblue.com • 404-917-0200 • fax: 404-917-0201<br />
Paperless Environments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64<br />
www.paperlessenvironments.com • 866-431-4695<br />
Procore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29<br />
www.procore.net • 866-4-PROCORE (477-6267) • fax: 866-281-2906<br />
Ram Mounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65<br />
www.ram-mount.com • 800-497-7479<br />
ROCTEK International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58<br />
www.roctek.com • 800-826-7736<br />
Safety Maker, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64<br />
www.safetyboot.com • 800-804-4741<br />
Tally Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69<br />
www.tallysystems.us • 800-748-6636 • fax: 858-271-8356<br />
Textura LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23<br />
www.texturallc.com • 866-839-8872 • fax: 847-582-1037<br />
Tradesman International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41<br />
www.tradesmeninternational.com • 800-573-0850 • fax: 440-340-4092<br />
St. Paul Travelers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61<br />
Email: j.dennis.lane@spt.com • 860-277-5168 • fax: 860-277-3931<br />
Volvo Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C2<br />
www.volvo.com/rental • 866-387-3687<br />
Watt, Tieder, Hoffar & Fitzgerald, L.L.P. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11<br />
www.wthf.com • 703-749-1000 • fax: 703-893-8029
community<br />
spotlight<br />
C o M M U n I t Y<br />
s P o t L I G H t<br />
PennsYLVanIa<br />
72 | <strong>Construction</strong> ExEcutivE June 2007<br />
J o a n n a M a s t e r s o n<br />
Futures Filled with Hope<br />
Thanks To a major efforT from Associated<br />
Builders and Contractors’ Southeast<br />
Pennsylvania Chapter (ABC SEPA), 126<br />
children from the Mississippi towns of<br />
Waveland and Bay St. Louis can look forward<br />
to futures filled with more hope. In just<br />
11 months, 35 ABC SEPA members helped<br />
build the Hancock County Child Development<br />
Center for the two towns devastated<br />
by Hurricane Katrina, donating more than<br />
$587,000 in cash and gifts in kind.<br />
Not only is the center the first public<br />
building to be completed in the county<br />
since the storm hit, but it’s also the first<br />
major project of the Bucks-Mont Katrina<br />
Relief Project, a volunteer group that joins<br />
business and community leaders in Pennsylvania’s<br />
Bucks and Montgomery counties<br />
with the Salvation Army to rebuild communities<br />
along Mississippi’s Gulf Coast.<br />
Because the storm destroyed nine of the<br />
area’s 12 child care centers, building a new<br />
center was a top priority for helping families—many<br />
of whom lived in public housing<br />
destroyed by Katrina—return to work.<br />
When the founders of the Bucks-Mont<br />
Katrina Relief Project asked Jon Otto,<br />
president of Penn Valley Constructors,<br />
Inc., Morrisville, Pa., to chair the Building<br />
Group Committee, he turned to his fellow<br />
ABC SEPA members for help.<br />
“I reached out to them because I know so<br />
many of the subcontractors are good people<br />
who step up when help is needed,” Otto says.<br />
“I basically had a few plans and a steel build-<br />
students from Bucks County Technical<br />
high school’s carpentry and auto shop<br />
departments fabricated alphabet letters for<br />
the child care center’s exterior walls.<br />
ing I ordered based on a few donations. They<br />
instantly embraced the idea.”<br />
The $1.25 million, 10,000-square-foot<br />
facility, which opened in March, employs<br />
about 30 people and provides day care services<br />
for children up to age 5.<br />
“It is like having your dream come true,<br />
and then living it and knowing everything<br />
you thought would be great about<br />
it is great,” says Lora Mederos, executive<br />
director of the Hancock County Human<br />
Resources Association. “It lends so much<br />
more credibility to the entire program.<br />
The children are really thriving.”<br />
About 150 construction workers from<br />
the Delaware Valley traveled to Mississippi<br />
to work on the center, which features<br />
eight classrooms, five bathrooms and a<br />
kitchen. Contractors volunteered to erect<br />
the pre-engineered steel building, hang<br />
drywall, paint walls and install plumbing,<br />
sometimes uniting with other companies<br />
to gather enough money and manpower to<br />
complete tasks like the exterior masonry<br />
and interior cabinetry.<br />
“Everyone had a good experience<br />
because they were able to use their skills to<br />
make a difference,” Otto says. “Whenever<br />
I would thank the workers, they would say<br />
‘no, thank you.’”<br />
Up next for the Bucks-Mont Katrina<br />
Relief Project is the construction of a food<br />
pantry located on the same block as the<br />
day care center. The group also is working<br />
with the National Association of the<br />
Remodeling Industry to raise money to<br />
put families back in their homes.<br />
masterson is staff writer of <strong>Construction</strong><br />
<strong>Executive</strong>.<br />
<strong>Construction</strong> <strong>Executive</strong> Wants Your News!<br />
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