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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 />

North Fairfax Drive, 9th Floor, Arlington, Virginia<br />

22203. (703) 812-2000. U.S. subscription rates:<br />

$15 a year for members of Associated Builders<br />

and Contractors; and $65 a year for nonmembers.<br />

© 2007 by Associated Builders and<br />

Contractors Services Corp. All rights reserved.<br />

Periodicals postage paid at Arlington, Va., and<br />

additional mailing offices.<br />

Postmaster:<br />

Send address changes to:<br />

<strong>Construction</strong> <strong>Executive</strong><br />

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Arlington, Va. 22203<br />

e d i t o r i A l A d v i s o r y b o A r d<br />

Roberta Adams, TDIndustries<br />

Michael Bellaman, Bovis Lend Lease<br />

Carole L. Bionda, Nova Group<br />

Michael G. Conley, DuPont Company<br />

<strong>Mike</strong> Goodrich, BE&K<br />

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 />

If you would like to share company news of community service,<br />

send your information to:<br />

<strong>Construction</strong> <strong>Executive</strong>, 4250 North Fairfax Drive, 9th Floor,<br />

Arlington, Va. 22203, or email abcares@abc.org.

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