Alabama Construction News

McGraw-Hill Construction Outlook for 2012

NLRB Appointments

ACRI Update

ALABAMA

CONSTRUCTION N EWS

ABC Alabama Chairman Geoff Golden FEB/MAR 2012

Prefabricated Construction on the Rise PAGE 24

Construction Under Attack PAGE 34

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FEATURES ALABAMA

CONSTRUCTION N EWS

24

Prefabrication/Modular Building Techniques Again on Constructors Minds Prefabrication and modular building’s benefits are on display. Gain some insight on the trend that has been such a big hit in the south. And, take a glance at a potential future built around these techniques.

30

Profiles ACN sits down with Geoff Golden, ABC-Alabama chairman and ABC National chairman, Eric Regelin.

34

Construction Under Attack The labor versus management scene may be impacting the construction industry more than you think. What does this mean for the trade, and who is playing a pivotal role in this dispute?

02

AL CONSTRUCTION NEWS

FEB/MAR 2012

MORE JOBS. MORE TOOLS. MORE HELP.

MORE OF WHY YOU JOINED THE ABC NORTH ALABAMA CHAPTER

It’s tough out there. And that’s why we’re here for you. We’ve teamed up with Dodge to give you access to business development and bidding efficiency tools, at a special ABC rate. Call 615.298.7744, or email ron_osteen@mcgraw-hill.com and together, we can build your business.

DEPARTMENTS

6

6 From the President

BUILDING ALABAMA

10

9 Projects

Projects are reaching completion throughout the south. Take a look at the projects on campuses and in communities near you.

14 Updates & Reports

18

What is the latest news on industry outlooks and trends? See the information that predicts a shift in the construction trade.

20 ACRI Update

48

39 ABC News & Notes

20

AL CONSTRUCTION NEWS

Knowledge of the NLRB controversies provided. Find out how ABC is assisting you.

46 Faces

04

What is ACRI doing to expand the construction workforce?

Strategies are being implemented and results are shown.

FEB/MAR 2012

Who is making noteworthy contributions to the construction community? Learn about the Goodrichs and the difference they are making, as well as some notable shifts in leadership.

What we know.

We know that being among the ten firms in the U.S. with the most first-tier rankings overall for two consecutive years is worthy of celebration.

We know that we got there in part because of the 153 attorneys we have listed in The Best Lawyers in America®.

We know it also helped that 63% of our partners were among them.

We know that, national rankings notwithstanding, we must earn the respect of our clients every day.

We know that, while we celebrate today, tomorrow is another opportunity to prove ourselves worthy of this recognition.

That’s what we know.

Illustration by Name Here

AMONG THE NATION’S BEST LAWYERS

babc.com

|

photograph by NAMEGOES HERE

ALABAMA

|

DISTRICT OF COLUMBIA

|

MISSISSIPPI

|

NORTH CAROLINA FEB/MAR 2012

|

TENNESSEE

AL CONSTRUCTION NEWS

No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. Contact: John B. Grenier, Esq., 1819 Fifth Avenue North, Birmingham, Alabama 35203

00

From the President ALABAMA

CONSTRUCTION N EWS

Publisher

Jay Reed Associate Publisher/ Managing Editor

Todd Walker Publishing Coordinator/Circulation

Charles Hall Accounting

Jenny Wilson Advertising Sales

George Pierce Editor

Hugh J. Rushing Print Production

Print Resources

Jay Reed

Art Director

President,

Brian Authement

ABC Alabama

I

Copy Editor

Megan Beavers

am excited for our magazine, Alabama Construction News, and our new look for 2012. We understand that change is constant, and

we welcome it. Change reinvigorates and fuels our dedication for this magazine and our readers. Despite a changing look, we remain true to our mission. With that said, I am excited about new features that deal with our core beliefs.

In this issue we will provide you with a resource that deals with the bannering trend and development of a website www.shameonunionbanners.com. Updates on ABC’s Free Enterprise Alliance www.freeenterprisealliance.org and on the Obama administration’s controversial appointments to the NLRB board are available as well.

As an industry, we cannot overlook the threat that can easily go unnoticed if we were to stray away from vigilance or a strong commitment to our mission.

Please pay close attention on April 30, 2012 when a rule goes into effect that deals with the NLRB’s posting requirement.

Once again, please take heed that although there are many changes in the look and appearance of the magazine, our mission never waivers as we fight for Free Enterprise and Merit Shop.

I hope you enjoy this issue.

Jay Reed,

Publisher/ President - Associated Builders and Contractors

06

AL CONSTRUCTION NEWS

FEB/MAR 2012

Alabama Construction News is published by Associated Builders & Contractors, Inc. Copyright © 2012 ABC-Alabama All rights reserved. Reproduction in whole or part without written permission is prohibited.

Address all correspondence to: Alabama Construction News 1830 28th Avenue So. Birmingham, AL 35209

For adversiting information: contact George Pierce at 205.870.9768 x100 or email george@abc-alabama.org.

For editorial information: contact Hugh J. Rushing at 205.592.0389 or email hrushing@usit.net.

Illustration by Name Here

photograph by NAMEGOES HERE

FEB/MAR 2012

AL CONSTRUCTION NEWS

00

Ivey Mechanical Company,

LLC

7354 Cahaba Valley Road Birmingham, AL 35242 205.949.6000 phone 205.949.0063 fax www.iveymechanical.com

BUILDING

ALABAMA Compelling Projects, Updates & Reports For and

By Alabama Firms

photograph by TODD WALKER

FEB/MAR 2012

AL CONSTRUCTION NEWS

09

BUILDING

ALABAMA PROJECTS

Independent Living Resources East & South Elevations

Hoover Batch Plant Site to Become Nursing Home

Stewart Perry Busy on Multiple Projects Birmingham’s Stewart Perry Construction is constructing a 8,000 square foot building for Independent Living Resources of Greater Birmingham (ILR) at the corner of 15th St. and 6th Ave North, in Birmingham’s Civil Rights District. The steel frame, slab-on-grade structure features universal design for maximum accessibility for those with disabilities, according to project manager Robbie Cather of Stewart Perry. Door openers which can be activated by wheelchair footrests, work stations with high and low transaction counters and parking spaces with detectable paver systems for vision impaired users, are some of the features of the building. ILR helps those with disabilities pursue independence to the maximum extent possible. Cohen Carnaggio Reynolds is the architect on the project.

Stewart Perry has also broken ground and is mobilizing on Birmingham’s newest Target Store, sited where the former Brookwood Convenience Center was located on Lakeshore Drive. The 150,000 square foot retailer is slated to open in March, 2013. Unique features of the building, says Clinton Smith of Stewart Perry, include an elevated retail floor with two stories of parking underneath and a cart lift system for customer convenience.

Stewart Perry is also nearing completion on the U.S. Steel’s Birmingham headquarters at the Preserve in Hoover. The 20,000 square foot New Orleans-styled building features ornamental iron balconies and a brick façade.

Other Alabama projects for Stewart Perry include a 100,000 square foot Target in Madison, a Publix Grocery and retail shops at Oxford, and a center for Hibbett Sports, Publix and Books-A-Million in Florence.

10

AL CONSTRUCTION NEWS

FEB/MAR 2012

A Tuscaloosa operator of 41 nursing home facilities plans to build a 120-bed skilled nursing and rehabilitation facility in Hoover on a site currently used as a concrete batch plant.

According to published reports Northport Holding LLC has purchased the nearly eight acre site and partially fulfilled the commitment made when they bought 238 licensed beds at the Jefferson County Rehabilitation and Health Center near Tarrant last September for $8.3 million. Tentative plans call for construction to begin this year with completion in 2013.

Reports estimate the construction cost at some $12-million. The batch plant site originally held a Holiday Inn. When McCarthy Improvement Company began interstate paving work on I-65, the firm built a batch plant in order to reduce cement truck traffic through Hoover, officials said.

Robins & Morton Completes New YMCA, Starts on Another Robins & Morton have completed work in December on the new YMCA, located in a former Bruno’s grocery on John Hawkins Parkway in Hoover. The $5.5 million facility has over 66,000 square feet and took seven months to complete. The Hoover Y has an elevated track, swimming pool, spa, weight room and basketball courts.

During the seven months leading up to the opening, over 1,100 families joined the facility.

Robins & Morton will also renovate its neighbor, the Shades Valley YMCA in a $5.5 million project. Some 4,000 square feet are being added to the front of the building and will house a new entrance, technology center and weights area. Other additions to the building, which dates from the 1960s, include a pool, new locker room, group cycling workout room and a nursery area. The YMCA has raised about $2 million for the project and plans to issue tax-exempt bonds through the city of Homewood to help finance the project.

Robins & Morton Shades Valley YMCA

FEB/MAR 2012

AL CONSTRUCTION NEWS

11

BUILDING

ALABAMA PROJECTS

Alabama State Campus Expands Football Facility A $60-million expansion of the Alabama State University’s Hornet Stadium will increase seating capacity to 30,000 with potential for additional expansion. Work commenced in March, by Auburn’s Rabren General Contractors. The main bowl seating area is cast-inplace concrete with steel and pre-cast seating for the main structure. Club level seating for 2,500 is part of the project. The 21 suites in the project are already sold, according to Jay Thomason of Rabren. The completion date for the project is in time for the Turkey Bowl game November 22 which features Alabama State University and Tuskegee University.

Thomason said that 18 suites, which hold 20 spectators, are sold out. The suites feature a lounge area, catered buffet, flat-screen televisions, kitchenette/bar area, refrigerator, high speed Internet and a drink rail with bar chairs overlooking the playing field. The stadium will also have 25 loge boxes, which feature 8 seats and will be in front of the Premier Club Lounge. The boxes will feature executive chairs on casters, access to the stadium club and other amenities. 750 of the outdoor seats will have chair back seats, cup holders and expanded legroom.

Major subcontractors on the project include Auburn Electric, Bradley Plumbing, Gates Precast and Steel Services.

12

AL CONSTRUCTION NEWS

FEB/MAR 2012

Big Tree Move on Auburn Campus Using a 128-inch tree spade or careful hand digging, Auburn University has moved eight large trees from the site of the recently demolished Fisheries Annex to make way for the new Kinesiology Building. The trees will be transplanted back onto the site at the end of construction.

Overseen by the Auburn University Facilities Management, the tree move was a combined effort of Robins & Morton, construction manager for the Kinesiology Building, Yates Construction Co., Environmental Design and members of the University’s Tree Preservation Committee.

Environmental Design is a Texas-based firm specializing in transplantation of large trees. The school said the effort reflects Auburn’s commitment to sustainable practices and is in keeping with its Tree Preservation Policy of protecting and preserving its natural resources.

The root balls on the trees varied from an estimated 65,000 to 125,000 pounds according to officials and were wrapped in burlap and metal fencing. Oil drilling pipe was pushed under the root balls to form a platform and purchase for the crane lift.

Estimated to be between 30 and 40 years old, the trees moved were six Burr oaks, one Nutall oak and a winged elm.

AL State photograph by JAMES PEAVY

NationView Completes Facility for our Returning Warriors NationView, LLC, a Birmingham based general contractor, has successfully completed the design and construction of the Warrior in Transition Complex at Fort Campbell, Kentucky. This was a very high profile project with considerable involvement by the Fort Campbell Commanders, Generals and end users. The purpose of the complex is to provide assistance to injured soldiers in their rehabilitation and transition back to their former roles as defenders of our country or their return to civilian life as honored veterans. This was the first time a facility of this type has been constructed at this base, and it was under constant scrutiny. The facility complex consisted of a single story Battalion Headquarters (8,100 SF) and a medium sized two story Company Operations Facility (20,600 SF). The structures contain administrative and office areas, classrooms, break

areas and training areas. The building plans are arranged to facilitate workflow so that recovering soldiers can receive assistance with ease and complete accessibility. Corridors are located between the perimeter offices and ancillary spaces and the structures are located in close proximity to the soldiers’ living quarters in the neighboring barracks, as well as, the Blanchfield Army Community Hospital where the soldiers receive much of their medical care. The facility is a LEED v2.2 Silver Certifiable project. NationView worked closely with the U.S. Army Corps of Engineers to insure that this low maintenance facility meets all requirements of the Army. The mission statement of this complex is “Unleashing Unlimited Potential: Healing a Wounded Warrior’s Mind, Body, and Spirit.”

B.L. Harbert Finishes First Phase of Office Expansion B.L. Harbert International has finished a nearly 39,000 square foot consolidated receiving and shipping facility which will provide logistical support for its International Division’s worldwide construction business. A second phase, which will be a 34,000 square foot office building, is set for completion later in 2012 and will be located adjacent to the receiving and shipping facility. The second phase is also designed to achieve LEED Gold status. Both facilities are in Oxmoor Valley adjacent to Lakeshore Pkwy.

Giattina Aycock Architectural Studio designed both phases of the expansion while Harbert’s U.S. operations division performed the construction.

FEB/MAR 2012

AL CONSTRUCTION NEWS

13

BUILDING

ALABAMA

U P D AT E S & R E P O R T S

ABI—Good News or Repeat of 2011?

The Architecture Billings Index (ABI) was positive for two consecutive months—November and December 2011 had identical readings of 52.0—giving some hope that one of the main leading economic indicators of building might be headed toward positive ground for 2012.

However, as AIA chief economist Kermit Baker points out, there were identical indicators in November and December of 2010, but billings fell into negative territory for much of 2011. “Nevertheless this is very good news for the design and construction industry and it is entirely possible conditions will slowly continue to improve as the year progresses,” Baker said.

Strongest indicators in December were from the South with 54.2 compared with the Midwest at 53.1, the Northeast at 52.6 and the West at 45.1. Multi-family residential was strongest at 54.3 followed by commercial/industrial at 54.1 and institutional at 51.3. Mixed practice was in negative territory at 44.5 the report said.

The ABI provides about a nine to twelve month glimpse into the future of nonresidential construction spending activity. Any score above 50 indicates an increase in aggregate billings.

Drywall Settlement to help Thousands in the Southeast One of the largest suppliers of China-produced drywall, blamed for noxious smells and accelerated corrosion of metals within homes and condos, has settled thousands of claims for more than $1 billion.

After hurricanes Wilma and Katrina devastated the Gulf Coast states, a shortage of drywall saw builders importing drywall to meet demand. The drywall, manufactured in part with fly ash, with allegedly high quantities of sulfur, has caused corroded plumbing, heating and cooling systems, and electrical wiring. In January Knauf Plasterboard Tianjin Co. agreed to create a fund, which would cover homes in Florida, Mississippi, Alabama and Louisiana.

Terms of the settlement call for a choice of the settlement’s designated contractor to effect replacement of the drywall or the payment of cash to the homeowner and allowing them to oversee reconstruction.

Experts have claimed that the typical home’s replacement of drywall costs about $70,000 in labor and material and doesn’t account for replacement of corroded appliances and wiring.

In June 2011 a drywall distributor in Florida, Banner Supply, also agreed to spend $54.5 million to compensate those with home damage.

BL HARBERT

BL HARBERT

Alabama Business Confidence Index Up

Chart info by The Center for Business and Economic Research, ABCI

The outlook for business growth has moved to the positive side in the Alabama Business Confidence Index (ABCI) compiled by Center for Business and Economic Research at the University of Alabama. 2012’s first quarter was rated at 50.8, up 5.3 points from the last quarter in 2011. While many panelists are feeling mildly optimistic about Alabama’s prospects, confidence is still weak on the national scene. While national sentiment moved up 8.7 points, it is still only at 46.5, meaning that more executives are pessimistic than optimistic. The Alabama economic outlook was up 7 points to 52, an indicator that executives believe Alabama will out-perform the rest of the nation.

The Center for Business and Economic Research says that the most pessimistic industry sector in the state is healthcare, with the confidence level for that sector at a weak 42.5. Construction’s ABCI was at 49.7.

Confidence in the Birmingham-Hoover area rose 7.6 points over the fourth quarter of 2011 to 52.7; Montgomery was at 54.3. Weaker expectations ruled Mobile (49.6) and Huntsville metro (47). Prospective cuts in military and space exploration budgets weigh on north Alabama executives.

The index is derived by analyzing the responses of 271 Alabama business executives.

First Quarter 2012 Outlook

Change from

Alabama Q4 2011 ABCI 50.8 5.3 National Economy 46.5 8.7 Alabama Economy 52.0 7.0 Industry Sales 55.6 5.0 Industry Profits 50.2 2.9 Industry Hiring 50.0 4.1 Capital Expendatures 50.6 4.2 Index above 50 indicates expansion Index below 50 indicates contraction

We Recommend: For more information, check out The Center for Business & Economic Research online at http://cber.cba.ua.edu/

FEB/MAR 2012

AL CONSTRUCTION NEWS

15

BUILDING

ALABAMA

U P D AT E S & R E P O R T S

McGraw Hill Construction presents

Industry Outlook & Trends for Alabama

Alabama Construction Outlook for 2012

Modest Decline Will Prolong Multiyear Downturn Millions of Dollars

2007

2008

2009

2010

2011

2012

Total Construction

9,504

12,231

7,537

6,796

5,953

5,894

-4% 29% -38% -10% -12% -1%

Commercial Bldgs

1,386

1,259

704

489

500

536

11% -9% -44% -31% 2% 7%

Institutional Bldgs 1,737 1,963 2,260 1,261 1,401 1,140

36% 13% 15% -44% 11% -19%

Manufacturing Bldgs

547

4,352

110

1057% 696% -97%

Single Family Housing

4,156

2,840

2,415

113

278

415

3% 147% 49%

2,248

2,230

2,265

-15% -32% -15% -7% -1% 2%

Multifamily Housing 309.5 452 331 422 210 328

Public Works

-60% 46% -27% 27% -50% 57%

1,363 1,345 1,695 1,532 1,289 1,132

Electric Works

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AL CONSTRUCTION NEWS

11% -1% 26% -10% -16% -12%

6

20

24

732

46

77

-99% 253% 16% 2992% -94% 67%

FEB/MAR 2012

We Recommend:

MHC Resource Websites:

construction.com construction.com/events construction.com/market_research analytics.construction.com sweets.com bim.construction.com

Millions of Dollars 600 500

HEALTHCARE

400

Despite 2010- 2011 Drop, Starts Remains Healthy

300

2011: Tuscaloosa, AL: Building Completion Package for ADMH Adult Psychiatric Hospital; $48.5M 2012: Mobile, AL: DOD Army Medical Facilities; $250M 2012: Tuskegee, AL: Mental Health/Behavioral Patient Care Unit; $7M - $8M

200 100 07 08 09 10 11 12 1000 800 600

SCHOOL

400

Falling Enrollments, Tight Budgets Hinder Building Effort

200

2011: Tuscaloosa, AL: Science Engineering Complex (Phase IV); $66M 2012: Tuscaloosa, AL: Alberta Elementary School (Tornado Rebuild); $5M - $9.9M 07 08 09 10 11 12

2,000

PUBLIC WORKS

1,500

Declines in ARRA Funding Create Deceleration in Starts

1,000

2012: Birmingham, AL: UAB District Steam System (Heating/Cooling Plant); $69 M 2012: Huntsville, AL: Water Treatment Facility; $60M-$80M 2012: Mobile, AL: Maintenance Dredging; $25M-$100M

500

07 08 09 10 11 12 600

OFFICE Office Construction Plunged in 2009 - 10; Recovery Began in 2011 but Further Gains May Elude in 2012

500 400 300

2011: Huntsville, AL: Dynetics Incorporated Addition; $16.3M 2011: Huntsville, AL: Madison County Department of Human Resources Building; $13.5M 2012: Spanish Fort, AL: Community Center; $7.5M

200 100 07 08 09 10 11 12 600 500 400

RETAIL Retail Construction Peaked in 2007

300 200

2011: Daphne, AL: Winn-Dixie Store #596 Remodel; $21.6M 2012: Huntsville, AL: Redstone Gateway - Phase I; $5.25M - $7.5M

100

Data Provided by McGraw Hill Construction

07 08 09 10 11 12

MANUFACTURING ThyssenKrupp Steel Processing Facility Boosted 2008 Starts; More Moderate Facilities Provide Growth in 2011-2012

5000 4000 3000 2000 1000 07 08 09 10 11 12

2011: Axis: Steel Mill; $53.4M 2012: Opelika, AL: Manufacturing Building; $74M 2012: Vance, AL: Mercedes Benz Assembly Plant Expansion; $289M (part of $2B expansion)

FEB/MAR 2012

AL CONSTRUCTION NEWS

17

BUILDING

ALABAMA

U P D AT E S & R E P O R T S

Enterprise Fleet Management Expands Environmental Sustainability Program

Enterprise Fleet Management Eco-Friendly Fleet Microsite: drivingfutures.com/fleetmanagement

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AL CONSTRUCTION NEWS

FEB/MAR 2012

with New Microsite for Businesses With Medium Size Fleets Companies with medium-size fleets will discover new ways to create an eco-friendly fleet and reduce their carbon footprint using a new microsite developed by Enterprise Fleet Management, a full-service fleet management company specializing in serving businesses with medium-size fleets. The link to the new “Building an Eco-Friendly Fleet” microsite is available at www.drivingfutures.com/fleetmanagement.

The microsite is unique because it focuses exclusively on ways companies with medium-size fleets can take advantage of environmental best practices according to Enterprise. Initiatives include programs for offsetting greenhouse gas emissions, fleet emission foottprint analysis, vehicle cycling and fleet optimization, and emerging fuel and engine technologies.

Enterprise Fleet Management estimates that the average fleet vehicle each year will log 20,000 miles and emit anywhere from 19,000 to 27,000 pounds of carbon dioxide (CO2), which is why managing vehicle emissions can represent a key – and highly visible – component of an effective corporate social responsibility effort.

A flagship program through Enterprise enables fleet operators to purchase verified greenhouse gas offsets through a trusted third-party partner that invests in alternative energy projects – such as energy from wind farms and the mining of methane gas from landfills – to remove harmful greenhouse gases from the atmosphere.

Based on conversations and feedback from customers, Enterprise said that there is a demand for innovative ways to address the environmental impact of a company’s fleet. The new microsite not only enables businesses to become part of the solution, but it’s the most comprehensive source of information for establishing medium-size eco-friendly fleets in the industry, Enterprise says.

ABC Offers 2012 Health Care Law Compliance Checklist To help members insure they are in compliance with new requirements on the federal Patient Protection and Affordable Care Act, ABC is offering a compliance checklist.

The checklist covers the topics: • Grandfathered Plan Status • Summary of benefits and coverage • 60-day notice of plan changes • Women’s preventative care guidelines • Medical loss ratio rebates • W-2 reporting • Tax changes for age 26 coverage • Comparative effectiveness research fees • Small business tax credit The checklist can be downloaded online at http://bit.ly/yCg1Cm

A HISTORY OF MOVING ALABAMA FORWARD. The Dunn companies have proudly served Alabama and the Southeast since 1878. Our dedication to growth and progress spans five generations of family leadership. From road building to construction to real estate, we continue to enhance our services. And we approach each project with a commitment not only to our client, but also to the generations to come. dunn-companies.com

ACRI, CEFA & DEPARTMENT OF EDUCATION

Working Together to Build Future Workforce Critical craft positions in the future will be served by groundbreaking program

by HUGH J. RUSHING

20

AL CONSTRUCTION NEWS

FEB/MAR 2012

BUILDING

ALABAMA

U P D AT E S & R E P O R T S

C

URRENT DEMAND FOR CONSTRUCTION CRAFT workers may seem anemic but any uptick in demand—and some think that will occur in 2012—will expose potential shortages of many skilled trades critical to the construction industry. Legislation passed with the support of the construction industry in Alabama—the Alabama Construction Recruitment Institute (ACRI). The industry will essentially be taxed in order to pay for recruiting and outreach, which means a brighter looking future for construction.

An aging population of skilled tradespeople, most of whom are over 50, and a younger generation more interested in computer games and air conditioned comfort than outside work—have worried the construction industry for years. Additionally, at least in Alabama, stringent legislation regarding immigration has caused an exodus of lesser skilled laborers. The combined efforts of the ACRI, the Alabama Department of Education and the Construction Education Foundation of Alabama (CEFA) are addressing all of those problems.

Eighteen months into the Go Build Alabama recruitment effort, more than 4,000 persons have expressed interest in construction careers according to ACRI head, Dr. Tim Alford. The $850,000 award winning recruitment campaign, featuring ads with Mike Rowe of the Discovery Channel’s Dirty Jobs series, has exceeded expectations and predictions by fivefold, Alford says. “We have been able to refer registrants from the Go Build website—over 4,000 of them now, to a variety of apprentice and craft training programs throughout the state, whether those are run in an open shop or closed shop, a company sponsored training program, or programs offered by the state’s educational system.”

A survey of craft instructors throughout the state, Alford noted, found that 70 percent of the instructors believe that their enrollments have increased due to the activities of the ACRI and its outreach program. “Auburn University Montgomery is currently doing an external evaluation of the programs, and thus far it is showing our messaging is on target and effective.”

Alabama’s success with the program has inspired other states as well. Georgia just instituted a similar program. However, it is not funded through a tax on construction labor payments.

Additionally, Alford is meeting with secondary school counselors in the state, helping spread the word that craft training is a long-term job creation program that high schools can use to aid the futures of their students.

Susan Harrison, education administrator in the Career and Technical education section of the Alabama Department of Education reports that in the 2010-2011 school year, 17,655 students were taking a variety of courses in skilled trades training including

drafting, electrical, welding, plumbing, cabinetmaking, carpentry, building construction, HVAC and masonry.

The state Education Department has adopted the National Center for Construction Education and Research (NCCER) curriculum with the Construction Education Foundation of Alabama (CEFA) as the accrediting agency providing support and review of the various programs throughout the state’s high schools and colleges. Currently 22 sites have received accreditation due to a $100,000 grant from the state’s education department (see list).

Another $150,000 grant is in the offering for this spring to additional schools throughout Alabama.

CEFA was established in 2001 by ABC-Alabama, AGC’s Alabama branch, and the Alabama Concrete Industries Association to consolidate a multiplicity of training programs into a unified accredited craft training program for the entire state. In addition to running its own craft training programs, CEFA acts as a certifying agency of NCCER, aiding the state’s craft training programs by offering training to instructors, inspecting craft training sites for appropriate equipment and safeguards and many other ways as well.

Byron McCain, Executive Director of CEFA has conducted training already in several community colleges and six high schools in the state. McCain points out that NCCER accredited training is strenuous. “It requires a minimum 70 percent attainment on written work—not an average of 70 percent—but a minimum of 70 on all written work.” McCain says that practical applications of craft training are graded on a pass/fail method.

“When students complete a course of study successfully, NCCER receives their transcripts which they then review and send a wallet card to the student, which a potential employer can use to verify their training,” McCain says.

Students taking NCCER accredited courses of study in high schools will be able to earn their NCCER certification and then go on to level II training at a community college or other apprenticeship program, McCain added. “And by the beginning of 2012’s school year, in September, we expect to have more schools ready to roll with this program.”

Another key program, CEFA, has begun. This program is for basic education to benefit general contractors needing semi-trained labor. Faced with potential shortages of such a labor force, in part due to Alabama’s tough immigration law passed in 2011, McCain said the program meets a critical need. “We’ve wanted to do this for years, but now seems to be the perfect time for it.”Students, the first class of which has just graduated, get 48 hours of training in safety, construction terminology, mathematics, tape reading, take offs, use of tools, concrete form building, and door and win-

“We have been able to refer registrants from the Go Build website— over 4,000 of them now, to a variety of apprentice and craft training programs throughout the state…”

FEB/MAR 2012

AL CONSTRUCTION NEWS

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BUILDING

ALABAMA

U P D AT E S & R E P O R T S

Alabama Community Colleges with NCCER Accredited Construction Training Programs COLLEGE Bevil State Community College Bishop Community College Calhoun Community College Gadsden State Community College (3 Campuses) J.F. Ingram State Technical College (3 Campuses) Jefferson Davis Community College (2 Campuses) Trenholm Community College Wallace State Community College (2 Campuses)

LOCATION(S)/AREAS SERVED Walker/Fayette/Pickens County Mobile Decatur/Huntsville Gadsden Deatsville/Elmore County Brewton/Escambia County Montgomery Hanceville/Cullman County

NCCER Programs Trained in Building Construction AREA SERVED Baldwin County Chambers County Cherokee County Chilton County Cullman County Cullman City Decatur City Department of Youth Services Etowah County Franklin County Jackson County Limestone County Mobile County Muscle Shoals City Phenix City Troy City Tuscaloosa County Walker County Washington County Madison County Lee County Winston County

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AL CONSTRUCTION NEWS

SCHOOL NAME South Baldwin Center For Technology Chambers County Career Tech Center Cherokee County Career & Tech Center W A Lecroy Career Technology Center Cullman Area Career Center Cullman High School Decatur High School AL Department of Youth Services School District Etowah Career Technology Center Franklin County Career Tech Center Earnest Pruett Center of Technology Limestone Career Technology Center Bryant Career Technology Center Muscle Shoals CTC Central High School-Phenix Troy-Pike Center for Technology Holt High School Walker County Center of Technology Washington County Area Sparkman High School Smith Station Winston CCTC

FEB/MAR 2012

dow frame construction.

Barry Heaton, a 30-year veteran of construction and a retired field superintendent with Brasfield & Gorrie has taught the class. Heaton relayed Byron McCain’s thoughts, stating that these students can make money for a general contractor on the first day.

During the 48 hours of training, the students are ranked by their instructor from top to bottom. “If they miss more than three classes, they automatically go to the bottom of the list,” McCain says. “Part of the instruction is that when these folks get a job, their employer is going to expect them on the jobsite every day when there is work. We are training for those expectations as well.”

Deemed “Construction Basics 101”, the program will begin a second class in February. “Our discussions with field superintendents have resulted in very positive comments,” McCain reports. “We are not providing a temp service, as we want these folks to gain full and permanent employment and while they work, avail themselves of additional training in a craft they’d be interested in pursuing for the long-term.”

Associated Builders and Contractor’s president Jay Reed says, “The Alabama

NCCER 2nd Round of Grants SERVICE AREA AL Youth Services Anniston City Chilton County Cullman County Dekalb County Dothan City Escambia County Escambia County Etowah County Fairfield City Gadsden City Henry City Jackson County Limestone County Lowndes County Marshall County Mobile County Mobile County Mobile County Montgomery County Phoenix City Randolph County Selma City St. Clair County Tuscaloosa City Wilcox County

CRAFT TRAINING AREA Masonry Electrical Technology Masonry Electrical Technology Masonry Carpentry Carpentry Carpentry or Masonry Electrical Technology Masonry Electrical Technology Masonry Masonry Electrical Technology Masonry Electrical Technology Electrical Technology Plumbing & Pipefitting Electrical Technology or Masonry Carpentry Masonry Electrical Technology Masonry Carpentry Electrical Technology or Masonry Masonry

SCHOOL NAME Wallace School (DYS) Anniston High School WA Lecroy Career/Technical Center Cullman County Area Career Center Dekalb Technical Center Dothan Technology Center Escambia County High School Escambia-Brewton Career Tech Center Etowah County Career Technical Center Fairfield High Preperatory School Gadsden City High School Headland High School Earnest Pruett Center of Technology Limestone County Career Technical Center Calhoun/Central High School Marshall Technical School Bryant Career Tech Center Bryant Career Tech Center Faulkner Career Tech Center Brewbaker Technology Magnet High School Central High School Randolph-Roanoke Career Technical Center Selma High School Eden Area Technical Center Tuscaloosa Center for Technology Wilcox Central High School

Construction Recruitment Institute (ACRI) and its Go Build Alabama campaign are working to ensure we are recruiting Alabamians to work on our job sites. Our industry conservatively represents close to $10-billion worth of economic impact in Alabama and this legislation ensures we continue to have the manpower needed to meet demand. ACRI was requested by the construction industry and approved by the Legislature which shows it was needed.

Its mission is to recruit a new generation of skilled craftsmen for the commercial and industrial industry. Our association and this industry strongly support this program and are now assured it works.”

“We are not providing a temp service, as we want these folks to gain full and permanent employment and while they work, avail themselves of additional training in a craft they’d be interested in pursuing for the long-term.”

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P R E FA B R IC AT I O N MODULAR BUILDING again On Constructors Minds

by HUGH J. RUSHING

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prefabricate work on projects as small as a $100,000 waterworks project to a project as complicated as the renovation of a 100-year old federal courthouse.”

Dan Price, of B. L. Harbert International says that his firm’s international and federal divisions have had significant experience with large-scale prefabrication and modular construction. “We are continually studying lean construction concepts including prefabrication and modularization in an effort to promote maximum efficiency in every project.

Our commercial division has recently been awarded two student housing projects, where prefabrication will be evaluated as well.”

Prefabrication and modularization does seem to be best suited for projects where the desire for such techniques exists at the outset and where owner and architect agree on a unified approach for a project. Additionally, projects with repetitive construction—multifamily housing, hospitals, hotels, prisons, barracks and nursing homes—are also the ones that can benefit most from the technique. Joel Adkins of Adkins & Kimbrough Mechanical says that 75 percent of his firm’s work these days incorporates prefabricated assemblies. “Projects which has several floors or areas that are repetitive are the ones which make the most sense to use prefabrication on,” Adkins says. “We are usually able to show owners and contractors that this strategy saves money and most owners and contractors are aware of this these days.”

“Without areas of significant repetition in a project,” says Dan Price, “It is difficult to find large scale prefabrication efficiencies without repetition as the volume requirement isn’t met.”

Leadership is also necessary from general contractors as well, noted Drennen.

“We are in a transition period when subcontractors, which historically provided good workmanship in the field may actually be holding back a general contractor in its (the gc’s) pursuit to keep up with the times.”

FMI’s survey points out that the use of BIM and 3-D coordination drawings will make the use of prefabricated assemblies more common in the future, but

Illustration by Name Here

P

RODUCTIVITY IN THE construction industry, largely unmeasured and often misunderstood, is complicated by the fact that most construction projects are individualized.

But, two recent studies claim that the use of Building Information Modeling and “green” construction techniques are reviving the use of modular and prefabricated techniques to control cost, improve quality and productivity and accelerate building program timelines.

In recent months, both FMI and McGraw-Hill Construction Research and Analytics have issued in-depth reports surveying the use of prefabrication and modularization in construction. The growth particularly in prefabrication for mechanical/HVAC, plumbing and electrical systems may be aiding a larger trend toward modularization of the building process.

FMI surveyed 1,100 companies who use prefabricated assemblies and found that 80 percent saved more than 5 percent in labor when they performed jobs that allowed for such assemblies. McGrawHill’s study predicts that by 2013 nearly every construction job will feature some prefabrication/modularization on some projects—following its study of data obtained from over 800 builders, architects and engineers, including 525 contractors.

Bruce Taylor of Marathon Electrical Contractors said his firm has been doing prefabricated work for the past six years, “with some success and some extreme failures,” Taylor noted. “We believe this is the way to reduce cost and move our business forward as we continue to look for new ideas and go back and try things we tried before in a different way. I have not seen a job to date that cannot benefit from prefab construction techniques.”

Richard Drennen of Superior Mechanical estimates that two-thirds of his firm’s put-in-place work is now prefabricated.

“We traveled the country and even to Canada to observe best practices of larger, regional mechanical contractors and began prefabrication in 2009 on the new $270 million Benjamin Russell Hospital for Children. Going forward we will

Illustration by Name Here

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O U R D E FA U LT N O W I S W H Y A R E N ’ T W E P R E FA B R I C AT I N G T H I S ?

indicates that standardization would aid in the penetration of modularization/prefabrication further into the construction scene.

Geoff Golden of Golden & Associates Construction points to his firm’s construction in early 2007 of the 42-unit Presbyterian Apartments in Northport, Alabama. The 30,000-square foot HUD 202 project was completed in five months. Golden said, “We framed it and dried the building in ten days. From that experience in wood framing we saw an opportunity to move the concept up the curve to a non-combustible metal frame solution for bathrooms, headwalls, footwalls and MEP racks for the healthcare industry.” “Today,” Golden observed, “We can deliver an integrated prefabricated package for all those items.”

Some 30 percent of Golden’s projects are now using such techniques, including a 50,000 square foot nursing facility currently under construction and a 250-unit high density multifamily project, which will kick off later in 2012.

Despite the findings of the studies, there are some notable retrenchments in the area of modular buildings. Mike Dean of Caddell Construction Co. pointed out that the Corps of Engineers responsible for military installation buildings dropped a requirement for modular building alternatives from their request for proposals (for military barracks) after a few projects were built. “Modular barracks are not successful as a replacement for permanent construction…if you need better accommodations than a tent, and you are willing to accept a manufactured home level of quality and specification, then maybe it is still a viable option,” Dean said. McGraw-Hill’s study reveals that prefabrication/modularization is most often not used because it was not designed into the project by its architect.

Nearly a third of the architects surveyed in the study had concerns about the quality of prefabricated/modular components as compared with conventional building, which impacts the frequency of the technique’s use.

A major user of modular and prefabricated construction techniques is Robins & Morton, one of the nation’s top medical constructors. At Wellington Medical Center in South Florida, Robins & Morton is installing prefabricated bathroom pods in 80 patient rooms. Once the rooms are delivered and put into place, the only assembly required is setting the toilet into place.

In late January, according to Robin Savage of Robins & Morton, at MaineGeneral Medical Center, the firm installed 600 linear feet of exterior wall panels in less than 48 hours. “The framing, sheathing and waterproofing of the 17 foot tall panels was done in the neighboring town of Portland, which helped stimulate the local economy,” Savage said, adding that headwalls in all 196 patient rooms were prefabricated along with patient bathrooms and shower rooms.

The emphasis on green building is also helping propel interest in off-site construction, the McGraw Hill study indicates. Since prefabricated assemblies can be produced away from the site, the need for laydown areas and the stream of waste materials is greatly reduced. The U.S. EPA says that 135 million tons of

debris from construction sites ends up in landfills annually.

Geoff Golden says, “The site is cleaner, and safer and most importantly, the workforce morale is much higher when we use these techniques.” Additionally, fabricating offsite, according to Robin Savage, “Improves the air quality by eliminating dusts and the use of odorous materials.”

McGraw Hill’s study found that exterior walls and MEP building systems were the most common elements being used in modular/prefabricated construction. MEP systems can reduce the space required for ductwork since provision doesn’t have to be made for room for the installer on-site. Additionally, ductwork can be kept cleaner, a plus for sensitive projects such as hi-tech and biomedical facilities. Joel Adkins says that more than 70 percent of his firm’s work is now using prefabricated assemblies.

One area that Caddell Construction has found really lends itself to modular construction is that of prison cells. Typically, in the past, cells were built of cast-in-place concrete and/or concrete block, according to Mike Dean. “But about fifteen years ago, the masonry trade began to diminish and the number of qualified masons necessary to build prisons required a national search and made the cost of masonry labor soar.” The result was a much more extensive use of pre-cast concrete cells. Dean points out that subcontractors who pre-cast cells often move their casting project nearby the project and create a manufacturing plant. Or, they ship the modular cells in via rail from their manufacturing site. “These projects are always driven by a very specific code. The requirements are repetitive from project to project, and the modular companies have close relations with the few suppliers of the often-complicated components that go into the cells.”

There seems to be a consensus among Alabama builders that the use of prefabrication and modularization will only increase in the future. Drennen says, “There are prefabricatable components in almost every project. We are developing eyes for this, and our default now is, ‘Why aren’t we prefabricating this?”

But, this also requires the architect/engineering team to design modular components from the outset of a project’s planning.”

Additional Resources on Modular Building Literature The Commercial Real Estate Revolution by Rex Miller, Dean Strombom, Mark Iammarino and Bill Black On the web www.youtube.com/watch?v=4i-tLHpZRe4 http://youtu.be/y5H5c6IbXyU Research: Dr. Edwards Deming

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PROFILE

e

Geoff

Golden ABC ALABAMA CHAIRMAN

by HUGH J. RUSHING

A

LIFELONG RESIDENT OF BIRMINGHAM, Geoff Golden graduated from Auburn University with a degree in Building Science. After founding Golden & Associates Construction, LLC in 1997, Golden oversaw the growth of a diversified construction and construction management firm. This firm did everything from renovation of historical structures to condominiums and institutional work. Golden is ABCAlabama Chairman for 2012.

In an interview with Alabama Construction News, Golden said, “I want to continue to make ABC the most valuable and relevant construction association in our state.” Two areas of focus during the year, Golden pointed out would be communication to the membership and revenue diversification. “We need to continually improve our communication between and among our membership and make sure we properly communicate our positions to both the legislature and to the public at large,” Golden said. “With a pro-business mindset in the Alabama Legislature, we have a unique opportunity to lay the groundwork for a solid future for our industry in this state.”

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With a pro-business mindset in the Alabama Legislature, we have a unique opportunity to lay the groundwork for a solid future for our industry in this state.

photograph by LIESA COLE

Golden also says that ABC is studying the creation of a safety service, which could be administered by ABC. This would provide diversification in revenues in addition to exploring opportunities to use the association’s leverage to save ABC members money in employee benefits.

“We also have an over-arcing goal to build ABC membership in South Alabama as well,” Golden stated.

“I am also going to be talking about involvement during 2012,” Golden said. “I want to encourage every ABC member to get involved at the committee level and share their insight to aid all of us in the construction business, whether we are a general contractor or a subcontractor.” The synergy that occurs will enable firms to accomplish more. “The hurdle is answering the question some always have that says, ‘Why should I be hanging out with my competition?’. My answer to that is that the more information you have, the better company you can be. The transfer of information raises the bar for everyone,” noted Golden.

Golden assured Alabama Construction News that ABC’s primary role for 2012 will be advocacy in Montgomery. “As an industry and association we must start looking at alternative delivery methods to be innovative in promoting economic growth. From public-private partnerships to CM at Risk, other States are passing legislation that promotes growth. I want to see Alabama out front on these trends and to do this in some areas legislation is required. We are also looking at revisions to the mechanics liens process and anti-indemnity clauses. As an association we feel the sales/use tax process is also overdue a revision.

Of course we plan to monitor the immigration revision as well as engage our governmental affairs team in the charter schools discussion and the economic incentive packages the House and Senate plan to introduce. We also feel the unemployment fraud bill and work comp legislation stands to help our industry. Simply put we monitored 150 bills last year and at time of print we currently have 75 plus bills in our tracking database. ABC is your voice in Montgomery.”

Workforce development is another important topic for Golden’s tenure as chairman of ABC-Alabama. “Our aging workforce challenges are such that we need to make sure that the Alabama Construction Recruitment Institute continues the important work of recruiting young people to our industry. Particularly as we see signs that manufacturing is returning to U.S. shores from overseas, meaning we have to be ready to build for the future.

Alabama is one of the prime states for manufacturing and we want to work with the Alabama Development Office and Director, Greg Canfield to make sure we do everything we can to attract good high-paying jobs to the state.”

Golden also hopes to “Put an emphasis on the hard-working people that make ABC members successful. Companies are important, but companies are only as good as the people they employee. People need recognition, as they’ve been through difficult times recently.”

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PROFILE

SEric

Regelin

ABC National Chairman 2012

by HUGH J. RUSHING

F

ROM 1976 TO 1984 ERIC REGELIN worked as an engineer with U.S. Steel.

Regelin graduated from Purdue University with a degree in construction management and structural design. “I made plenty of trips to Birmingham,” Regelin recalls during an interview from his office in Ellicott City, Maryland.

ABC’s 2012 National Chairman is president of Granix, a privately held constructor and related services firm. Previously, Regelin spent 26 years with Atlantic Builders Group, Inc. of Baltimore.

Regelin took time out of a busy schedule to talk with Alabama Construction News regarding his goals and emphasis in 2012.

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How would you like to see ABC change during your term as chairman?

I think it is important to blend out the differences between local chapters versus national. I would like us to get to the point where ABC is ABC and get rid of the chasm which some feel exists between local chapters and the national office. Let’s spend our time working for our members and not in unproductive struggles between Washington and local chapters.

What will you tell ABC chapters in your travels during the year?

My plan is to talk common sense with the goal of making ABC indispensable to the membership. We need to work to have a positive influence on the elections come November. So, I am encouraging chapters to work actively in the election arena.

I also have plans to update the strategic plan which was put forth in 2009 and put metrics to the strategic plan so we can monitor how we are doing in meeting our goals. A strategic plan ought to be a living document that is kept in front of the organization. We don’t need an annual “topic de jeur”, but a longer term perspective in my opinion.

How important is the 2012 Election Cycle to America’s Merit Shop Construction Industry?

Jim Elmer who was the 2010 chairman said to everyone, “The 2010 election is

ABC’s 2012 National Chairman is president of Granix, a privately held constructor and related services firm. Previously, Regelin spent 26 years with Atlantic Builders Group, Inc. of Baltimore.

the most important of your lifetime.” Respectfully I disagree. The 2012 election cycle is the most important in a long time.

ABC members have a lot at stake—the attacks on the merit shop philosophy are on going, relentless and over burdensome regulations. I could go on, but most ABC members understand what is at stake this time around.

Tell us at little about your experience in the construction business and how you got involved with ABC. I got started when I moved to Maryland in the 1980s and was working with a midsized general contractor. I was moving up the ranks and got asked to become the director of quality control and safety. I wasn’t comfortable with what I knew. So, I got engaged with our chapter’s safety committee, made some friends there and progress to the Baltimore chapter’s board, ultimately serving two terms as chairman of the chapter.

It was during that time I got exposed to the national board as well as the regional board. I got curious about the influence that ABC has nationally and I guess the rest is sort of history.

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Construction Under Fire Merit Shop Philosophy Continues Under Fire in Washington Back in the 1930s, Nobel Prize winner Sinclair Lewis penned a novel called “It Can’t Happen Here,” a satirical work that imagined a rise in the United States of a fascist regime. This echoed some of the populist themes of then-Senator Huey Long of Louisiana, who had plans to run for president in 1936.

Lewis cynically imagined America cheerfully following the lead of fictional president, Buzz Windrip, who promised $5,000 a year to each citizen. This fictitious character ended up outlawing dissent and imposing martial law instead, which ultimately ruined the country.

Perhaps it is a stretch, but long-time observers of the labor versus management scene in the U.S. are worried that what was unconceivable just a few years ago, might happen in the near future.

Vance Fulkerson of Birmingham’s Robins & Morton, and a trustee of the Free Enterprise Alliance

(FEA)—an issue advocacy fund of ABC—has a dim view of what’s been happening over the past three years. “Down here in the south—in the past we were somewhat insulated from the labor issues happening in other places in this country. But there are plenty of hand grenades around, and some aren’t that far away.”

Fulkerson refers to the dispute over the Boeing Corporation’s decision to locate a non-union manufacturing plant in South Carolina. Even though the NLRB dropped its action against Boeing in early December, it wasn’t because of generosity. In return for a new four-year contract extension with Boeing, the machinist union agreed to drop the complaint it had filed with the NLRB. The claim was centered on Boeing’s decision to put a plant in a non-right-to-work state, pointing out that this amounted to an “unfair labor practice of punishment for the union.”

REPUBLICANS HAVE CLAIMED that President Barack Obama is in debt to unions. This stems from the financing of his previous run for the White House as well as this year’s reelection, both allowing unions to dictate policy at will.

The Free Enterprise Alliance has twelve additional trustees besides Fulkerson.

These trustees are located throughout the U.S. A monthly conference call considers issues and funding requests. Fulkerson says the alliance budget ranges between $2-4-million annually, depending on whether it is an election year, as well as issues each new year brings. Most of the financial support for the alliance comes from ABC members and their companies.

The alliance is not a political action committee (PAC). The organization does not disclose specifics about its contributors, nor is it required to.

The NLRB has been at the center of a number of disputes, Fulkerson points out, which threaten how businesses can manage their relationships with their employees. “There’s no more dangerous animal than the NLRB. And, since the president can’t get his legislation through Congress, he’s governing through agencies such as the NLRB, OSHA and the EPA.” Recent rulings by the NLRB have the effect of easing the organizing effort for unions while reducing some traditional techniques used by a business owner to educate employees on union issues.

“I wouldn’t be surprised, particularly if Obama is re-elected—to see here what I’ve seen in the north, unions with giant inflatable rats picketing businesses, smearing a company’s reputation by claiming that it is against the workingman. Hurry up union

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organizing with the union’s getting all the reasons they should represent workers out in front of the workers is out of balance with what management can do,” Fulkerson says.

success in combatting PLAs on federal projects even though they are encouraged by the current administration,” Fulkerson says. “The bidding offices that take a dispassionate look at PLAs certainly realize

“We have got to work hard to elect the best, most business, economic friendly, candidates we can all across America.”

There is also a constant battle against Project Labor Agreements, which unions favor. However, numerous independent studies have shown reduced productivity and an increase in labor costs. Some states—California in particular—have blocked local municipalities from instituting non-PLA projects, even when citizen’s votes are in favor. “We have had some

that all they do is increase the cost of projects or reduce the scope of the project for the same amount of money. In either case, Americans aren’t getting the best deal for their tax money.”

The Free Enterprise Alliance is attempting to get the word out through research, national TV, radio and billboard campaigns. “We attempt to raise money in or-

Vance Fulkerson, Robins & Morton, Birmingham, AL

LAST NOVEMBER,

ABC national chair Michael Uremovich came to Birmingham to attend the ABC-Alabama Excellence in Construction banquet. There was a long-held connection between Uremovich and Birmingham, dating back to the 1990s. He told the story while in town.

der to educate the public about PLAs, union-only projects and NLRB problems,” Fulkerson observes. Political Actions Committees which raise money and advocate for candidates are also a key to the future Fulkerson says. “We have got to work hard to elect the best, most business, economic friendly, candidates we can all across America. If we don’t I’m afraid the gains that merit shop employers have made over the years could be rolled back to an earlier, more difficult time.”

Those times included violence or at least the threat of violence (see sidebar). In August 2011, ABC member John King, president of King Electric in Toledo, Ohio was shot in the arm when he surprised a man trying to slash the tires of his vehicle parked outside his home. In large letters the word “scab” was written on the side of the car. King stepped from his front door after motion detector lights activated. The man vandalizing his car, turned and shot King in the arm before fleeing. “The local police didn’t want to investigate,” Fulkerson said. A total of $70,000 in reward money has been offered for information leading to an arrest.

King was quoted by the Toledo Blade, the local newspaper, saying, “I think perhaps the labor unions feel threatened by us now that, through this economic downturn, we’ve been growing and getting busier and busier,” says King. He called his firm, “the largest non-union electrical company in Toledo.” It has about 20 employees.

In 1995, Uremovich was heading up Starcon, a mechanical contractor that specialized in turn-around maintenance for refineries and similar firms. “We got a job which required more pipefitters and welders than we had access to,” Uremovich remembers. “I’d seen the picture on the front of the Engineering News Record of Ted Kennedy and Mike Goodrich with the headline saying something like, ‘The Bad Boys of Construction,’ because of their commitment to merit shop employment in spite of threats by unions”, says Uremovich.

“I called down to BE&K and in about fifteen minutes, Ted Kennedy called me back.” BE&K agreed to become a subcontractor to Starcon on a refinery job in Lemont, Illinois using BE&K employees who were between major projects.

Subsequently, Michael Quigley, the Operating Engineers local president and head of the Trades Council threatened Uremovich and pressured the refinery owner to have Starcon get rid of BE&K as a subcontractor. Uremovich wore a recording device to a sit down meeting with Quigley where he was told that unless BE&K was off the job, picket lines would be set up

and “there would be trouble like we’ve never seen before.”

BE&K successfully filed suit against the Operating Engineers and the Will and Grundy Counties Building Trades Council, getting an award of $544,000 as well as withstanding appeals. Uremovich on the other hand, was arrested and booked by the local sheriff on charges that he had unlawfully taped the conversation with Quigley. “Of course it is not against the law to tape someone threatening an unlawful act, but you can be sure that before my day in court (charges were subsequently dropped), my mug shot was distributed to all of Starcon’s customer base. It just went to show you the power that organized labor had in that area and the challenges we faced. I was always grateful to BE&K , Ted Kennedy and Mike Goodrich for how they supported our efforts.”

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News & Notes

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News & Notes

Controversy Surrounds Recess Appointments to NLRB

On January 4, 2012, the Obama administration announced its intent to make three recess appointments, not requiring Senate confirmation, to the Board:

SHARON BLACK, a former Deputy Assistant Secretary for Congressional Affairs at the U.S. Department of Labor. Ms. Black served from 2003 to 2006 as a senior attorney to then Board Chairman Robert Battista.

RICHARD GRIFFIN, the current General Counsel for International Union of Operating Engineers (IUOE.) Mr. Griffin is also a Director for the AFL-CIO Lawyer Coordination Committee.

TERRENCE FLYNN, current Chief Counsel to Brian Hayes, the Board’s only Republican Member.

Ms. Black, Mr. Griffin and Mr. Flynn joined Chairman Mark Gaston Pearce and Member Brian Hayes on January 9, 2012, giving the Board its first full five-member complement since August of 2010. The Board now consists of three Democrats and two Republicans.

WITHOUT AT LEAST ONE ADDITIONAL MEMBER THE BOARD would have been unable to continue operations. The U.S Supreme Court has ruled that the Board cannot operate and decide cases without a minimum of a three-member quorum. The Board had only two confirmed members. The controversy is that Congress may not technically be in recess, raising the possibility that recess appointments may be improper.

Obama administration officials and Democratic Congressional supporters insist that the appointments are both legal and appropriate. They argue that although Congress may be holding brief

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“pro forma” sessions, it is, for all practical purposes, in recess.

In other words, Democrats assert that the current Congressional “non-recess” is a sham designed by Republicans to thwart presidential appointments.

Republicans have cried foul and claim that the appointments are improper, and, in all likelihood, unconstitutional. Senate Majority leader Mitch McConnell (R-Ky.) stated that Obama’s action “sets a terrible precedent that could allow any future president to completely cut the Senate out of the confirmation process, appointing the [president’s] nominees immediately after sending their names up to Congress.”

John Kline (R-Minn.), the Chairman of the House Education and the Workforce Committee, and Phil Roe, Chairman of the Health, Employment, Labor, and Pensions Subcommittee, have argued that the recess appointments “circumvent the normal confirmation process” and are designed to ensure “the continuation of the [Obama administration’s] activist agenda on behalf of union special interests.”

The Bottom Line: BOTH SIDES HAVE STRONG ARGUMENTS IN SUPPORT OF their respective positions. Presidents need to appoint individuals to executive positions, which are necessary for government operations. However, the U.S. Constitution mandates Senatorial “advise and consent” during the executive appointment process. These competing governmental interests, concerning the relationship of the executive and legislative branches and their functioning under the separation of powers doctrine, beg for a political settlement rather than judicial intervention by the Courts.

Given the current election year climate, it does not seem that there will be any political compromise on this issue, making a judicial resolution all the more likely. Once the NLRB issues any rule or decision, the losing party will almost certainly seek judicial review claiming that the Board had not been properly constituted. The challenges have already begun.

On January 13, 2012, the National Right to Work Legal Defense Fund, the Education to Work Foundation Inc. and other groups with court challenges already pending, filed a motion with the U.S. District Court of Columbia requesting that the Court hold President Obama’s recess appointments to the NLRB “unconstitutional,

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Membership Luncheons Tuscaloosa, AL

Date: March 7, 2012 Location: Cypress Inn Loft Time: 11am – 1pm Speakers: Alan Boswell, Chief Building Official – City of Tuscaloosa & John McConnell, Planning and Development Services Director – City of Tuscaloosa

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Upcoming ABC Events ABC Safe Day

Date: April 20, 2012 Location: Wynfrey Hotel, Birmingham Time: TBA

ABC Alabama Convention

Dates: June 12 – 15, 2012 Location: Beau Rivage Resort & Casino – Biloxi, MS

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Date: March 15, 2012 Location: Battle House Hotel Time: 11am – 1pm Speaker: David Webber, P.E., Volkert, Inc.

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null and void” and that the illegality of the appointments prevents the NLRB from implementing or enforcing a new rule requiring employers to post workplace notices of employee rights under the Act. (Nat’l Ass’n of Mfrs. v. NLRB, D.D.C., No. 11-cv-1629, motion filed 1/13/12). The notice posting rule is scheduled to go into effect on April 30, 2012.

In the District of Columbia litigation, the plaintiffs have argued that the Obama administration and the Department of Justice have failed “to justify the President’s appointments to the Board and should not be adopted by any court.”

In another lawsuit, the U.S. Chamber of Commerce and the South Carolina Chamber of Commerce are also challenging the NLRB posting rule. (Chamber of Commerce v. NLRB, D.S.C., No. 11-cv2516). A hearing to consider motions for summary judgment in this matter has been set for February 6, 2012.

The outcome of the litigation in the lower courts will not be the final word with this issue. It seems probable that the meaning of a legitimate Congressional “recess” will ultimately be defined by the U.S. Supreme Court.

RETREAT. REGROUP. RELAX. Reload.

NLRB Announces Delay of Biased Notice Posting Rule In August 2011, the NLRB issued a final rule requiring employers to display an 11-by-17-inch poster in their workplace that contains a select list of employee rights under the National Labor Relations Act (NLRA). On Dec. 30, 2011, the NLRB delayed the notice posting requirement’s effective date from Jan. 31, 2012 to April 30, 2012.

On or after that date, employers will be required to post a physical copy of the notice at workplaces and an electronic copy on the internet (or company intranet), if the company already does so with other similar federal notices.

The rule has been subject to several legal challenges filed by the ABC-led CDW and other employer representatives. The lawsuits SelwoodAD.indd 1 assert that the NLRB lacks authority under the NLRA to issue the rule.

Under the rule’s provisions, employers have the option of posting their own notice (in addition to the Board’s notice), as long as it does not contain “threat[s] of reprisal or force or promise[s] of benefit.” ABC produced an 11-by-17-inch sample supplemental notice designed exclusively for nonunion contractors that outlines additional rights granted under the NLRA. As the rule is currently written, failure to post the NLRB poster on or after April 30, 2012, would be considered an enforceable and unfair labor practice in violation of the NLRA. In addition, the Board would be able to extend the six-month statute of limitations for filing a charge when a case involves other unfair labor practices.

If an employer knowingly and willfully refuses to comply with the requirements, the refusal could be used as evidence of unlawful motive in other unfair labor practice cases.

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News & Notes

ABC following union bannering trend ABC launched a resource guide to assist members in the union bannering trend, which is being sent Nationwide. “The pro-union forces are consistently looking to reinvent themselves and hinder the best method of project delivery-Merit Shop Construction. We are proud to once again be the voice of merit shop and are launching the web site www.shameonunionbanners.com,” said ABC of AL president, Jay Reed. Reed also added that the association has established a comprehensive guide to assist members in becoming educated with this new tactic. The 70 plus page guide also is designed to define the law regarding bannering, provide step by step guidelines for a member once bannering is experienced and touch on the PR side of dealing with bannering and your client.

Should your firm be subjected to bannering, contact the Alabama Chapter ABC immediately.

ABC of Alabama Anti PLA legislation A project labor agreement, or PLA, is a special interest scheme that discourages competition between nonunion contractors and their workers. This legislation dejects competition by requiring a construction project to be awarded only to contractors and subcontractors that agree to recognize unions as the sole representatives of their employees on each job.

PLAs were formed during the early 20th century to help trade unions cooperate. At this stage, a significant portion of the private construction workforce was indeed unionized.

This statute was put into place during a time that harbored a different industry than the one seen today. The PLA legislation used the union hall to obtain workers. With this regulation comes the task of obeying the union’s restrictive apprenticeship and work rules, as well as contributing to union pension plans. These and other funds guarantee that nonunion employees will never benefit unless they join a union.

PLA being mandated on construction projects in Alabama would essentially deprive workers of the opportunity to be chosen based on a level playing field. This is a major issue because of the amount of nonunion construction workers. In Alabama, 90 percent of the construction industry chooses not to join a labor union. With these numbers, it is easy to recognize the injustice that is looming over Alabama construction workers.

This legislation is not only affecting the industry. It has also taken a toll on taxpayers. Studies have shown that PLA mandates can increase construction costs by nearly 20 percent. Taxpayers are being billed more than they can afford because of these fiats, when they should be given the opportunity to choose what they deem as

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the best construction for the best price.

One study was conducted in 2011 by the National University System Institute for Policy Research (NUSIPR.) This study was based on California school construction projects that were built using PLAs. Results showed an increase of 13 percent to 15 percent or an escalation from $28.90 to $32.49 per square foot, in contrast to those projects that did not use PLA. Another study released on Sept. 23, 2010, by the Beacon Hill Institute (BHI,) found a considerable increase in construction costs on federal projects. Additional research conducted by BHI, found that government-delegated PLA mandates increased the costs on school construction by as much as 18 percent.

BHI also studied an executive order put into place by President Barack Obama; Executive Order 13502 was assigned in 2009. This directive encourages federal agencies to require PLAs on federal projects costing more than $25 million. This order repealed the Bush administration’s ban on PLA mandates for federal and federally assisted construction.

BHI researched the costs associated with the pro PLA Executive Order, had President Obama’s order been in effect in 2008. Results showed that if all 2008 federal construction projects worth $25 million or more had been performed under PLAs, it would have increased the cost to federal taxpayers from $1.6 billion to $2.6 billion.

More examples of PLAs mandate’s negative outcome can be found at www.abc.org/plastudies.

PLAs are nothing more than wasteful market recovery programs for unions that need to rebuild their membership after seeing their numbers decline for the last 50 years.

Senator Slade Blackwell asserts, “I introduced SB307 because it is a job creation bill and is a true representation of the construction community in Alabama. The bill ensures that right at 90% of the contractors in Alabama are not excluded when Federal dollars come into our State. Fair and open competition is the best use of tax dollars and is certainly best for the construction community in Alabama and, quite frankly, the US.”

“It is clear what PLA’s add to the bottom line of a project. To force that added expense while making contractors participate in antiquated union tactics is just not a fit for Alabama or the merit shop philosophy,” ABC of Alabama and the construction community are encouraging both the House and Senate to pass this bill. This bill warrants that every construction company and every employee receive an opportunity to compete for publicly funded projects in Alabama.

“It is clear what PLA’s add to the bottom line of a project. To force that added expense while making contractors participate in antiquated union tactics is just not a fit for Alabama or the merit shop philosophy,” said Jay Reed, President of ABC of Alabama. ”As an association we certainly try to adjust our services and benefits and change when needed, but this is one subject where we will not veer from-the merit shop way.”

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Faces

Going Places Left to Right Drew Langloh, United Way; Mike Goodrich; Gillian Goodrich; Kate Nielsen, Community Foundation of Greater Birmingham; Bill Jones, O’Neal Steel

living in poverty by providing a better quality of life and the promise of a better future. And, they continue to encourage the Community Foundation and United Way to work even harder to improve the quality of life for all,” Theriot said.

Michael Goodrich headed BE&K Construction until its sale three years ago. He has also been an ABC Cornerstone Award winner.

Former ABC Cornerstone Winner and past Chairman Michael Goodrich Named Outstanding Philanthropist

by Association of Fundraising Professionals.

M

ICHAEL GOODRICH, ALONG WITH HIS wife Gillian, were the 2011 winners of the Virginia B. and William M. Spencer Outstanding Philanthropist Award given by the Alabama Chapter of the Association of Fundraising Professionals (AFP). The couple, according to the AFP, has changed the world for children in poverty and communities in distress. They have done this by making it possible for Teach for America to provide teachers in Alabama’s Black Belt and by helping to inject new economic life into the Woodlawn area of Birmingham.

Michael Goodrich’s leadership with Boy Scouts and Gillian Goodrich’s with the YWCA demonstrate their continued commitment to give back to their community, the AFP said. Numerous projects have been supported by the Goodrich Foundation.

“The Goodrichs illustrate the theme of National Philanthropy Day and what we help people do through the Association of Fundraising Professionals; change the world with a giving heart,” said Sheri Ransome, chair of the 2011 event and member of AFP. “AFP is proud to sponsor this 30th anniversary celebration of National Philanthropy Day in our state,” said AFP chapter president Chris Theriot. “This is always a special time for the caring people of our community to come together to recognize the vital role philanthropy plays in our quality of life. In a year

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AL CONSTRUCTION NEWS

FEB/MAR 2012

The Goodrichs illustrate the theme of National Philanthropy Day and what we help people do through the Association of Fundraising Professionals; change the world with a giving heart. when so many lives have been destroyed by devastating tornadoes, it is appropriate to focus on what each one of us can do to change the world for someone else.”

The Goodrichs were nominated for the award by United Way of Central Alabama and the Community Foundation of Greater Birmingham.

“By word and deed, Gillian and Mike Goodrich have inspired and motivated people and organizations across our city, region and state. They have inspired individuals

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Faces

Going Places

Top row Billy L. Harbert, James O. Rein, R. Alan Hall, Charles A. Bohn Bottom row Gary W. Savage, Eric Agnew, Patrick Mitchell

B.L. Harbert International Announces Promotions within Leadership in mid-February: BILLY L. HARBERT has been named Chairman and CEO of B.L. Harbert International.

JAMES O. REIN has been named President and Chief Operating Officer. R. Alan Hall has been named Executive Vice President and Chief Financial Officer, responsible for the financial, administrative and corporate governance functions of the company.

CHARLES A. BOHN has been named President of the B.L. Harbert International Group, responsible for the management of all aspects of company operations in the overseas arena. The International Group has a worldwide portfolio of successfully completed projects and is currently ranked 14th on ENR Magazine’s list of Contractors Working Abroad.

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AL CONSTRUCTION NEWS

GARY W. SAVAGE has been named President of B.L. Harbert International’s U.S. Group, responsible for the management of all aspects of company operations within the United States.

The U.S. Group has four operating divisions and performs construction services for both the private and public sectors.

ERIC AGNEW has been named Senior Vice President and is responsible for the overall management of estimating and pre-contract activities for all International projects.

PATRICK MITCHELL has been named Senior Vice President, responsible for overall financial reporting and general business matters for all International projects.

JACKIE STEVENSON has been named Senior Vice Presi-

FEB/MAR 2012

dent of B.L. Harbert International’s U.S. Group. In addition to new duties, Stevenson is responsible for all operations within the Government Construction Division.

B.L. HARBERT International, LLC is a privately owned construction company with U.S. and International operations providing preconstruction, construction, design-build and construction management services. The company is currently ranked 67th in the country according to ENR Magazine based on 2010 annual revenues of $657 Million. B.L. Harbert International, LLC is the top green contractor in the state of Alabama and is ranked 20th in the United States.

EDWARD LEE SMITH joins B.L. Harbert International as

Vice President of Healthcare Division In this role, Ed will lead the Healthcare market sector for B.L. Harbert. Ed brings more than 30 years of experience in healthcare and commercial construction to his new role.

Most recently, Ed served as Executive Vice President for the BE&K Building Group and was their Business Unit Leader for the Atlanta and Nashville offices. He has overseen the construction of more than $2 billion in healthcare projects throughout the Southeast including the new Children’s Health System – Benjamin Russell Hospital for Children in Birmingham, Ala. Ed holds a Bachelor of Science, Construction Engineering from the University of Nebraska.

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