C O R N E R S T O N E - RQ Construction, LLC

C O R N E R S T O N ER Q C ORQ N SCONSTRUCTION—QUARTERLY T R U C T I O N — Q U R T E R LNEWSLETTERY N E W S L E T T E RIn This Issue:RQC Farm SystemProject & Employee UpdatesExpansion & New AwardsNew FacesCommunity CornerEvents & Games2345-789-111Spring EditionMay 2009As I sit here on the eve before Easter,contemplating what to write for thisedition of the cornerstone, I am struck bythe concept of hope. We are living in tougheconomic times for sure, and we haveelected a new president that constantly talksabout hope. In fact, he wrote a book called"The Audacity of Hope". The concept ofhope is an interesting one. In our culture,it has taken on the meaning of a desiredoutcome that may or may not happen. I amstruck by the consternation and lack ofhope that people have today. The problemas I see it is that many have put their hopein the wrong things.Easter is all about hope for the Christian. On Easter we celebrate the day thatJesus proved to those of us who put our faith in him that we would never be disappointedin our hope. We have to wait for it, but it is real. What Easterproved was that Jesus had power even over death. Without that power, hewould have just have been another false god and we who put our trust in himwould be worthy of pity.My wish for the RQ family is that you share in the same hope that I have, onethat does not disappoint. One that allows me to say it is a great day, even whenwe don't get the job that we were wanting.There are a lot of things that are important that I could write about this springholiday season. There is a lot of excitement around RQ. We have so much tobe thankful for. We have work. We are positioned better than virtually anyconstruction company in Southern California. We have the new and excitingEcolite wall company. We just got three great new projects and are expecting tobe in new MACC's for over 2.5 Billion dollars of contracts. We have some incrediblenew employees. We are on the cutting edge of innovation in designand construction. But even with all of this going on, if our hope is in RQ, wewill be disappointed at some point.Don't lose faith in RQ. But more importantly, have faith in the savior that providesus a Hope that doesn't disappoint.I hope your Easter was as full of joy as mine was.George H. Rogers, IIIPresident & CEO

In The WoodworkAhead of ScheduleThe P-117 Comm/Electric Shops atMCB Camp Pendleton has progressedrapidly. Our team membershave done an outstanding job maintaininga high level of customersatisfaction. We are pleased to announce thatthe project is on track to finish two monthsahead of the contract completion date. Kudosto the team: Brent Swanson (PM), Dave Barg(PE), Joseph Davis (Supt), Brett Basarich (Asst.Supt), Ed Robles (SSHO), Jill Hoxter (FA), BillGurr (QC), Sarada Chidambareswaran, and EdDeGuzman.ou may not think of yourself as aY farmer but here at RQC that may bechanging very soon. For the avid sportsfans out there, the introduction of the PEFarm System has home run written all overit!So what is all this “farm” talk about? Insports, the terms “farm system” or “farmteam,” refer to a team or club aimed toprovide young players with the trainingand experience needed to play at the nextlevel. Sports teams have adopted the use of“farm teams” for the advantageous abilityto grow their own players and fill theirranks.RQC’s pledge over the next three to fiveyears is to develop an in-house trainingand development program of the highestquality. The PE Farm System foundationcoincides with RQC’s commitment to be alearning organization, one that will providefuture employees the career trainingand personal development needed to improvetheir overall capabilities.Over the past summer, key RQC leadersand Tatiana Trevor (who is working onher Master’s of Science in Industrial/Organizational Psychology at the Universityof Tennessee at Chattanooga) createdan in-depth training manual specifically forRQC’s PE Farm System. With tremendousinput and guidance from key playersRQC Farm System—What’s That?and departments, a detailed developmentplan came to fruition.Tatiana hopes that the system and materialswill create, implement, and maintain acomprehensive training program at RQnow and into the future. She explains thattraining is an essential part of employeecommitment to an organization, and it isher belief that RQ's recognition and dedicationto this will certainly help to providepersonal development for its employees.She hopes this system will provide thebuilding blocks for successful training atRQ.The PE Farm System includes rotationsthrough multiple departments to provide abroad scope of knowledge and experienceto prepare a PE for the PM role. The rotationsinclude training in the followingareas: an RQ Orientation, Safety, QualityControl, Superintending, Project Management,Estimating, Design, Project Integration,Leadership, and Supply Chain.Randy Pritchett, Director of Field Operations–both a believer and a contributor tothe PE Farm system- believes that not onlyis the PE Farm System good for the team,but the system will encourage communication,collaboration, and coaching as PE’sspend time working and training with allthe different players at RQ.2PE’s have already begun working on objectivesfrom the PE Farm System Manual.Rotations in our Estimating andDesign departments are already showingthe benefits of increased knowledge andexperience with Mack Rogers, Jon Hustedt,Ryan Blair and Stephen Poppe. Thecommitment from the Executives, PE’s,mentors, and trainers has been essentialand will continue to be so as we fine tunethe system, paving the way for the futuredevelopment and success of RQC as awhole.n 1919 Branch Rickey,I then manager of the St.Louis Cardinals, devised whatcame to be known as the“farm system”. As the priceof established players increased, the Cardinalsbegan “growing” their own, signinghundreds of high-school boys. Other majorleague clubs followed suit, developing theirown farm clubs that were tied into the minors.In 1949 the minor leagues were tremendouslypopular: 448 teams in theUnited States, Canada, Cuba, and Mexicoplayed in 59 leagues with an aggregate attendanceof some 39 million.(www.britanntica.com)The joke amongst major league players in1930s was that they used to: grow 'emdown on the farm like corn.'

Air Force Happy with SCFIn The Woodworkhe Satellite ControlT Facility is a criticalnode in the Air ForceSatellite Control network. It will be one of sixteenantennas around the world that make up the network.The primary customer for this facility will be the intelligencecommunity, however over 60% of the informationstreaming through this 35,000 square foot datacenter will be civilian customers. This new facility willallow the closure of Onizuka Air Force Station. Theproject is about 50% complete. We've completed thestructure and have begun drying in the roof. InteriorMEP roughs are well established and we will beginhanging drywall this week. The project has performedwell with respect to safety, quality, schedule, andprofit. Most importantly, the Air Force seems to bevery happy with the progress of their new facility. Theproject team members include Rob Smith (PM), DonRay (Supt), Eric Belvin (PE), Audrey Terry (Safety),Mario Peneda (QC), Kath Dexter (QC Admin) andRobert Eblacas (Foreman).New EmployeesQ is growing! We would like toR welcome all of our new employeesthis spring:Leopoldo Adame, Prevailing Wage ForemanRonald Blackmon, Concrete SuperintendentAshley Blogajczyk, Design Project CoordinatorChristina Clemm, Associate AttorneyJohn Dominguez, Prevailing WageRic DuDeck, Site Safety & Health OfficerJose Esparza De Loera, Prevailing WageKenton Essman, Prevailing WageAnn L. Frederick, Admin Assistant—FtsAlex Gonzalez, Prevailing Wage ForemanSteven Gutierrez, Prevailing WageJennifer Halstead, Director of OperationsTimothy Hawks, Chief EstimatorMatthew Horak, Project EngineerDaniel Horton, Operations Accounting ClerkColin Jacobsen, Project ManagerHolly Loewen, Field AdministratorNick Loewen, Prevailing WageAdam Loewen, Prevailing WageJohn Maley, Prevailing WageSteven Mueller, Design QC ManagerLouie Poloni, EcoWall ControllerStephen Poppe, Project EngineerJohn Jason Reynolds, Prevailing WageDaniel L. Smith, Director Supply Chain ManagementBrian Thomas, Design Project CoordinatorJon Walters, Project Integrator3

RQC Expansionhe time has come for yet anotherT move! The company has beengrowing so fast we’ve recently movedpart of our staff to another location justaround the corner. It has only been tenmonths since we’ve moved to the Carlsbadlocation and the main office staffhas already outgrown it! RQ has leasedsecond location—a new 4,962 sq. ft. suite—just around thecorner to accommodate the expansion of several departmentswithin the main building,he Operations Administration and Operations Accountingdepartments will relocate to the beautifulTConcourse One at the Palomar Forum (pictured) locatedat 3207 Grey Hawk Court, Carlsbad, CA 92010. Thetwo departments will share space in Suite 150 with EcoliteIBS Contractors West. The suite will be furnishedwith 14 workstations, 5 private offices, and 1 conferenceroom. The move date was Thursday April 23, 2009.Design/Build Military Operations Urban Training(MOUT) Phase III facility at Ft. Irwin, CA - This$11.7 million project which features 83 separate buildingswill be designed in-house by RQ and utilize Ecolitewall systems. Design will begin immediately, with constructioncompletion scheduled for April 2010.New AwardsDesign/Build Child Development Center at Ft.Irwin, CA - This $9.8 million project features anew Child Development Center and renovationsto the existing Center. The project will be designedin-house by RQ and utilize Ecolite wallsystems. Design will begin immediately, withconstruction completion scheduled for September2010. This project is a Joint Venture withRichard Brady & Associates.Design/build SeaBee Museum at Naval Base Ventura, Port Hueneme -This $9 million project which features additional options totaling $2.6million will be designed in-house by RQ and utilize Ecolite wall systems.Design will begin immediately with construction completion scheduledfor September 2010.4

New Faces at RQTim HawksChief EstimatorSo why would the Director of ConstructionManagement at Jacobs Engineeringinquire about a job at RQ Construction,Inc.?If you ask Tim Hawk himself, he would tellyou he is more than ready to enjoy sunnyCalifornia with his family, while working fora company in such a unique position to growduring a global economic downturn.For the past 15 months, Tim was workingin Iraq with the US Air Force’s BuildingProgram building military bases, policestations, and border forts, with the photosand stores to last a lifetime.A Civil Engineer graduate from Universityof North Carolina-Charlotte, who alsostudied Architecture, Tim has served in anumber of positions over the past 29 years.,including a Project Manager, Director ofConstruction Management, A/E DesignManager, Chief Estimator, and Director ofEstimating at companies such as JacobsEngineering and Fluor.As reflected in his DISC report, he found itto be true that he likes observing peopledoing their jobs, studying how they do theirwork, and then devising ways to help themdo their tasks better, more efficiently, andeasier.When asked about his vision for RQ in2009, Tim believes that estimating will beinstrumental in helping RQ become a valuedand major construction firm in theDoD market, and that we will see a futuremarket for Ecolite both in the US and thirdworld markets around the world.Tim and his wife Jeanette of 26 years enjoytraveling the world and hope to improvethe golf skills now that they are living on agolf course here in San Diego. They have 4home schooled children . Tim’s oldestdaughter is married and preparing for missionswork and his two sons and youngestdaughter are all currently studying film andtelevision.Jeff StevensDirector of Special Projects andTrade Servicesou’ve probably seen Jeff Stevens in theY office and wondered, “what does thatguy do?”Jeff Steven’s joined RQ to play a strategicrole in what George Rogers refers to as RQ’s“special projects.” Jeff’s role involves RQ’sdiversification plan, and thus a greater promiseto future sustainability for RQ. Morerecently, Jeff is the new business manager fortrade services aimed to be a solution providerto the RQ enterprise. Jeff plans to see RQrise to be a $300M + DoD Backlog and awell running company that exemplifies ourMission, Vision, and Values by the end of2009.Jeff’s background includes positions as Director,President, COO, VP, and Division Headof various small and large, private andpublically traded companies. His experienceextends to strategic development,corporate sales, fund raising, and personnelmanagement. Jeff even is a publishedco-author of, “The Heart of Business,”published in November of 2005.So why did Jeff choose RQ? Simply put:“Mission, Vision, and Valuesand a leadership team that exemplifiesthose qualities.”When asked about what standsout in his DISC test, Jeff recalledthe statement: “Somemay view him as being stubbornand opinionated. Heviews it as the price you mustpay for success. He may try toexplain his stubbornness inpositive terms.” His response:“In short; I’m a realist that is indenial about being stubborn!”5Jeff, whom people often describe as prettyfunny guy, enjoys theology, golf, and thinkingwhile watering his yard. Something youprobably did not know is Jeff likes to laughat his humanity. Jeff and his wife, Jill, enjoylife in Valley Center raising their 4 daughtersand serving as an elder at Valley CenterCommunity Church.

New Faces At RQDaniel SmithDirector of Supply Chain Mgmte may not be looking at the inventoryH of tomato slices served at lunch on aFriday from 11:30am – 1pm anymore, but heis working on various strategic plans here atRQC. Meet Daniel Smith, one of the newestmembers at RQ, who hopes to bring his 25years of management experience to supportRQ as the Director of Supply Chain.Previously, Daniel’s work history includes a520 residence paper route, a 1980’s DJ, aBMW Mechanic, and 25 years at ClaimJumper as the General Manager, RegionalManager, and Vice President. Just don’t askhim to join you for a Fresco Burger fromClaim Jumper. He’s eaten more than hewould like to in one lifetime.As a man self described as “obsessed withorder and timeliness,” Daniel is an open guythat tries to communicate in a way that promotesan understanding of what the intentand outcome is. While joining RQ didn’tseem like the most logical move for a restaurantguru, Daniel believes RQ not onlyaligned with his personal values and desire tobe the best, but RQ also allowed him to dowhat he does best and offered him theopportunity to grow professionally.Daniel hopes RQ will grow and improveto a $300 Million back-log, while continuallyimproving our execution, and communicationprocess, both internally and externally,throughout the next year.An enthusiastic guy, Dan enjoys exerciseand water sports including surfing, andboating. Daniel and his wife Amy currentlylive in Valley Center with their 5 kids. Theyhave two identical-twin 4 year old boys and3 girls.Steve ScoginDirector of Marketingteve Scogin studied his DISC reportS and laughed, “my wife was right.”Steve, a supporting coordinator both naturallyand adapted, has found himself in anoptimal position to match his abilities.Steve will tell you that his hobbies wouldbe doing just about anything with his 18month old son Hudson, as well as workingon projects in the backyard with his wifeCory. In the past years, Steve and his wifehave been actively involved with YWAMOrganization building houses in Tijuana,Mexico.Growing up, Steve was an exceptionalwater polo player (as was RQ’s very ownJeff Stevens). More recently, Steve enjoyspicking up a golf game with friends.Beginning his career at Douglas E. Barnhart,Inc. in their tilt-up concrete crews,Steve worked his way up into an estimatingrole. After getting some experience underhis belt, he then found himself as the Directorof Marketing and Business Development,and for the next 6 years he managedBarnhart’s marketing department. Justbefore joining RQC, Steve worked at GilbaneBuilding Company as the BusinessDevelopment Manager.As a man that prefers open and honestcommunication, Steve knew RQ would be agreat match as a company that shared hisvalues. Additionally, RQ’s vision for designbuildwas a major draw for Steve. Much likethe other RQ senior managers, Steve iscommitted to help RQ reach our backloggoals, as well as achieve “outstanding” rankings,with zero accidents in the field.6

New Faces at RQJennifer HalsteadDirector of Operationso one knew who would fit the profileN of the critical Director of Operationsposition here at RQ, but when RQ was introducedto Jennifer Halstead, the puzzle piecesall fit together.Jennifer says she chose RQ for the dedicationshe saw from the owners to not acceptthe status quo, and for the exciting opportunitiesthat in-house design would provide.During her initial visit, the fitwas confirmed by the types ofpeople she met, what RQ valuedin her, and the contributionsshe felt she could make.So what is her background thatmakes RQ such a great fit? Jenniferhas joined RQ with almost23 years of experience, 18of it in various aspects of theGeneral Contracting world. Shestarted out as a Field Engineerand worked her way up throughthe Project Management path. Jennifer hasa strong design-build background on anumber of large projects in CA, NV, CO,and FL ,including the Staples Center inLA. For the past 4 years she’s owned herown consulting company as well as akitchen and bath firm in the Rocky Mountains.Looking ahead at the next year, Jenniferwants to be dedicated to the design-buildprocess and the unique opportunity thatRQ has because of our capabilities. Furthermore,she hopes to see growth in everyonethat works with (her).As someone that values relationships andcommunication, Jennifer prefers face-to-facecommunication. And you’ll probably noticeshe usually wants to understand the “why”behind the “what” in anything you are discussing.Apart from the construction industry, Jenniferand her husband, Chris, are avidpuppy raisers for Canine Companions forIndependence (CCI) – a service dog organization.They are currently raising puppy #6,Halinah. When she’s not working or trainingher puppies, Jennifer enjoys reading,traveling, visiting with friends and family,hanging out with her dogs and friends,helping CCI accomplish their missionthrough education and outreach events,NASCAR racing, and working on the classiccar collection now that she is back inCalifornia.Richard BevanSenior Project Integratorichard Bevan, born in Birmingham,R England, joined RQ last September asa Project Integrator. Now that Richard isworking on RQ’s Project Management Planwith ADePT, our UK consulting group, heknows RQ was indeed a perfect fit.Since he was a teenager, Richard knew thathe wanted to live and work in the US andnow finds himself waiting in anticipation ofhis citizenship just 12 months from now.Previously in the UK, Richard worked atvarious architectural practices and designbuild firms. Some of his projects includedthe Birmingham National Indoor Arena inconjunction of HOK, research buildings forSmithKline Beecham and Pfizer, and a400,000 sqft cigarette manufacturing plantfor RJ Reynolds in St. Petersburg, Russia.Two years after opening and managing theLondon offices for a US architectural/engineering firm, Richard transferred to thecompany’s Princeton, NJ office in 2001,ironically just two days before 9/11. Hethen worked as a PM on three high containmentresearch buildings for the NIHin Washington DC. Richard and his familymoved to California in the spring of’05 to join an A/E firm in L.A. beforebeing trasfered to manage their San Diegooffice in January of 2006.So how did Richard come across RQ?Interestingly enough, Richard was researchingfirms to JV with for governmentwork when he came acrossRQ. As he researchedfurther, he was sold on thefact that RQ had an officelocated two miles from hishome (at that time) andnext to his local Chineserestaurant—what could bebetter than that! But on aserious note, Richard willtell you it was the initialinterviews with George,Mike and Eric that inspiredhis decision as herealized what a terrificopportunity RQ would be.7Richard believes that while his role is newand challenging, it will be rewarding as heworks with the project teams to integrateand streamline the design and constructionprocess.Today, Richard enjoys a very full life withhis wife June, and three sons in Fallbrook.They enjoy weekends with friends andworking to transform their yard from constructionpad to “garden”. He adds, “Wehave to pinch ourselves some days just tomake sure it’s all real!”

Community CornerMilestone RQC Anniversaries!One YearOmar Angeles Paul BehremanEdwin De Guzman Sidney DenhamRobert Eblacas Robert FournelAdolpho Gil David C. KayDebbie Kemper Victoria L. MahrMarjorie Marcelino Eliel MartinezFrancisco P. Ochoa Richard OttoAlejandro Quezada Gil Richard L. RossMarquesa Tucker Toby TurnerJason E. Villoria10+ YearsEdward. M Robles—10 yearsDoug Youngdale—10 yearsLyle D. Jaynes—12 yearsSamuel Kirchmeier—12 yearsMichael D. Patterson—12 yearsDebbie Rose—12 yearsMitchell L. Tharaldson—12 yearsVincent Vidaca—12 yearsWay to go Bryan Skor and Leah Grau foryour February 28 wedding!Great job Suzan Barba! During last semesterat Mira Costa College she made the President’slist (receiving a GPA higher than 3.75with more than 12 credits scheduled).Way to go Nathan Bookout (below)! We’reall proud of Tina and Larry’s son for receivingthe “Greenhorn Award” at the AnnualFirefighter Challenge this August. He willalso be receiving an award for saving a 9 yearoldfromfire!boyahomeCongrats to Don Ray on the birth of his 9 thgrandchild, Lila June!We’re excited for Debbie Kemper whowill become a grandmother any day now!We’re celebrating Crystal and ShannonGriffiths on their wedding (below)!Best wishes to Sophia Arguello on herengagement to Eddie White III, whoproposed to her in Hawaii!Congrats to Rob Fournel. His son, Jasonexchanged wedding vows with Ria this pastSeptember. (below)Cheers to Sam Kirchmeier on the birthof his second grandson, Riggins LinnerGroth. Congrats to Kyle on becoming anuncle again!Mike presents Doug withhis 10-year RQC Bat8

MARSOC v. Consolidated Comm/ElectricARSOC and Consolidated Comm/Electric decided to takeM their rivalry to the raceway. MARSOC ended the day with 4trophies while Comm/Electric won only two, howeverComm/Electric took the Champion title with Brett winning therace in the Championship Round. Mack was able to comfort histeam by taking the win in the Consolation Round.The drivers show off their trophiesThe two teams set aside their rivalry for a group photoThe MARSOC bunch (from L to R): Kelsey Kortum, Sam Kirchmeier,David Youngdale, Josh Carroll, Steve Benson, Carolina Londono,Chris Canfield, Mack Rogers, and Bill FultonThe Comm/Electric group (from L to R): Bill Gurr, BrettBasarich, Maj. Floy Yates (USMC), Jill Hoxter, BrentSwanson, Dave Barg, Joe Davis, and Ed DeGuzmanThe drivers get ready for the race to begin9

Party TimeSarada serves up the punchMaquesa and Suzan take abreak to share a smileR Q held its 2nd luncheon of the yearon Friday, April 10 th for all of theMain Office staff. Organized by SuzanBarba, it featured street tacos with all thefixings, rice, beans, chips, and Mexicanfruit drinks catered by South of the Border.It was extra-special because all of themeat was grilled on-site and ready to beplated fresh. If you are interested in havingSouth of the Border cater for yournext function please contact:Len Hull at (760) 809-9327southoftheborder1@ymail.comRight:George is inshock at howamazing thefood looks.Left:The guyswork up theirappetite withsome 3 on 3.Below: Mike, and Richard load up theirplates with tacosIn the picture below, Tina, Dan, andCrystal save the day!Safety Drilln April 28, RQ held it’s first ofO many evacuation drills. Everyoneremained calm and followed theevacuation plan without incident.Lucky for us, the accounting teamswiftly came to our rescue to helpput out any fires.Below: Dana awaits word from Donto alert the sweep teamAbove: Bravo teamleader Simon checks inwith BethanyRight: Vickie patientlywaits for word to returnto her desk10

CORNERSTONE NEWSLETTERRQ Construction, Inc.3194 Lionshead AvenueCarlsbad, CA 92010Phone: (760) 631-7707Fax: (760) 631-8013www.rqconstruction.comEDITORSGeorge Rogers IIIChief Executive OfficerMike PattersonChief Operating OfficerMitch TharaldsonVice PresidentDon RogersVice PresidentCraig ShadleChief Financial OfficerSteve ScoginMarketing DirectorSTAFFBethaneé KuczmarskiProposal CoordinatorGrace HofsethEstimating AdministratorAndrea YorkeyOrganizational DevelopmentAdministratorAlissaMarketing AssistantApril Showers Bring May Flowersnscramble each group of letters to reveal a type of flower. ForU example, the answer to the first scrambled word is “violet”.The first three people to submit the correct answers to GraceHofseth will receive an exciting prize!EOLTVINPYOEDIORHCAILOMGANIAYSDORESLUTIPNSRLFOEUWGTEOETMRNOFOPYPPNDAIGERAISRILAAAEZIBSUSIHCFDOFAIDLCNORNTAAILCALINLAEVDERMMUWEESETAPGRMUANEIEATIPNUANNODEDILNPSAYARDILGMORQ’s Cornerstone Newsletter ispublished by RQ Construction, Inc.Entire contents is copyrighted 2009.Reproduction in whole or in partwithout written permission isstrictly forbidden.Comments, suggestions and articles arewelcome. Contact Bethaneé KuczmarskiE-mail: bkuczmarski@rqconstruction.com11