Alabama Construction News

Progressive Discipline

Healthcare Reform

ABC leads Amendment 2

ALABAMA

CONSTRUCTION N EWS

Construction Manager at Risk

2012 Excellence in Construction Awards

PAGE 41

PAGE 34

Workforce Development PAGE 22

Jim Rein

Mr.

2012 Cornerstone Award Winner PAGE 38

DEC/JAN 2013

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FEATURES

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Workforce Development Workforce Development planning and results to be revealed in the coming months.

34

Construction Manager at Risk A look at Legislation and alternative delivery methods that are being seen throughout the U.S.

38

Jim Rein is the 2012 Cornerstone Award Winner Jim Rein humbly reflects on accomplishments as ABC honors contributors

photograph by STEPHEN DEVRIES

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DEPARTMENTS

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06 From the President

AL Contractors Awards of Excellence

BUILDING ALABAMA 07 Projects Updates & Reports

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14 Outlook & Trends

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

WORKFORCE DEVELOPMENT 22 A Word on Workforce Development

62

Workforce Development has been under ample consideration lately, and for the first time, the construction industry is about to see the results of intricate planning.

41 Excellence in Construction Awards 2012

Alabama Construction News Honors Excellence in Construction.

ABC NEWS & NOTES 62 Healthcare Reform is Here to Stay. What Now?

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After attempts to defeat the Affordable Care Act (the health care reform law also known as “Obamacare”) failed at the Supreme Court, opponents of the law were hoping that the November Presidential election would open up an avenue for repeal. What now?

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From the President

A

LABAMA CONSTRUCTION News is honored to showcase in this edition Associated Builders & Contractors 2012 Excellence in Construction award winners. As we begin another year, it appropriate to pause and highlight the successes of our construction industry, which contributes $9.8 billion dollars annually to Alabama’s economy.

Don’t simply review the pictures, but examine the depth of these projects. People seemed amazed that a general contractor in Montgomery works in Djibouti, Africa or that a Birmingham-based company completed the most advanced Children’s Hospital to date built in this country.

We also are highlighting ABC of Alabama’s General Contractor and Subcontractor of the Year. Ivey Mechanical carried home the coveted “Subcontractor of the Year,” recognized not only for their comJay Reed mitment to excellence but for their commitment to ABC’s mission. BL Harbert InterPresident, ABC of Alabama national received the accolades as “General Contractor of the Year.”

The awards were presented at our Excellence in Construction banquet in October at the Sheraton Birmingham Hotel. At that event also the Cornerstone Award was presented to Jim Rein of BL Harbert International. A video documentary of Mr. Rein highlighting his commitment to our country, our industry and his firm was presented to over 600 people who were in attendance. If you are interested in viewing that documentary, please contact me at the ABC office.

In closing, I again encourage you to study the magnitude and importance of our industry to this state. The highlighted award recipients are our success stories. I would take the privilege of the editor in saying this is truly our favorite issue.

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

Alliance Publishing Group Art Direction

Ideogram.co Copy Editor

Megan Beavers 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

Jay Reed,

For advertising information:

Publisher/ President - Associated Builders and Contractors

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.

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ALABAMA Compelling Projects, Updates & Reports For and By Alabama Firms

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Watermark Design Group Training Facility For Airbus Mobile, Alabama

Mobile Architect Selected by AIDT for Airbus Training Facility WATERMARK DESIGN GROUP HAS BEEN SELECTED BY THE Alabama Industrial Development Training program (AIDT) to design a training facility for Airbus’ announced $600 million final assembly plant at Mobile’s Brookley Aeroplex.

The 35,000 square-foot, multi-story building will hold laboratories and classroom space for potential Airbus employees. Cost of the project is projected at $6 million. Watermark also designed the AIDT training facility for ThysennKrupp, north of Mobile.

Construction of the training facility is slated to begin in the summer of 2013. Airbus announced in mid-July 2012 its plans to employee 1,000 by 2015 in order to assemble the A320 family of jetliners. By 2018 the firm says it expects to be producing 40 to 50 aircraft per year.

Mobile-based Thompson Engineering, a sister company to Watermark, will provide engineering design, survey, inspection and similar services. Thompson also performed those services to the initial Airbus Engineering Design Center, which is already up and running at the Brookley complex.

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BL Harbert International Awarded $103M U.S. Embassy Project In Swaziland BL HARBERT INTERNATIONAL, LLC, & DESIGN PARTNER PageSoutherlandPage, LLP, have been selected to provide designbuild services for the new U.S. Embassy Compound in Mbabane, Swaziland, by the U.S. Department of State – Bureau of Overseas Buildings Operations.

Valued at approximately $103 million, the new compound will house U.S. diplomatic functions for Swaziland and is being designed to meet LEED Silver standards.

BL 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 82nd in the country according to ENR Magazine based on 2011 annual revenues of $617 Million.

BL Harbert International, LLC is the top green contractor in the state of Alabama and 20th in the United States.

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Hoar Project Gets LEED Silver Certification THE US GREEN BUILDING COUNCIL officially recognized the Hoover Apartment Addition at the University of West Alabama in Livingston with a LEED for Homes Certification. Hoar Program Management worked with University officials, the design team and the construction team to complete the project with enough credits to achieve the Silver Certification.

Hoar Program Management worked with the University, Herrington Architects and Amason and Associates to design and build the project using sustainable materials and

Medical Center Enterprise O.B. Addition

construction methods that would benefit the University. Key to achieving the LEED for Homes Certification included exterior and interior elements. The compact development offers close access to many community resources. In a typical rain event, all rainfall will infiltrate the ground without leaving the site. The landscaping material is nearly 100% drought-tolerant and is supplemented with a very efficient irrigation system.

The buildings were constructed using efficient framing techniques, recycled flooring and drywall materials, low-VOC flooring and paint and have energy systems rated as 18% more efficient than standard building codes require. Indoor air quality is improved with proper fresh air and spot ventilation.

Ecosouth Green Building Services provided consulting services for the LEED documentation and application process.

Lakeway Regional Medical Center

Benjamin Russell Hospital for Children

Congratulations to our project teams for these award winning projects...

St. Vincent’s St. Clair Hospital

Community Maritime Park

Two Metroplex Drive, Suite 400 Birmingham, Alabama 35209 (205) 803-2121 (T) (205) 423-2323 (F) www.hoarllc.com

Volkert Acquires Florida Engineering & Testing Company

VOLKERT, INC. HAS acquired Ft. Myers, Florida-based Allied Engineering and Testing.

With approximately 650 employees, Volkert provides construction engineering and inspection, engineering design and environmental services throughout the Southeast, MidAtlantic and Midwest U.S. Headquartered in Mobile, the company currently operates 25 offices in 11 states and Washington, DC. Founded in 1982, Allied is a full service organization with offices in Ft. Myers, Sunrise, Tampa, Punta Gorda and Sarasota. The company, which currently employs 90 professionals, specializes in construction engineering, inspection and materials testing, as well as the operation of two FDOT and Army Corps of Engineers approved laboratory testing facilities.

“Allied has been a trusted partner of our company for many years,” said Perry Hand, president and CEO of Volkert. “By solidifying this partnership, this helps us to strategically grow what is already one of the largest and most qualified construction engineering and inspection practices in the southeast.”

Allied president and founder, Paula McQueen, who will continue to serve as a Volkert vice president, said, “Allied and Volkert have worked together on numerous projects, and their culture of professionalism is very similar to that of ours. I am confident this will be a positive match for our staff, as well as our clients.”

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Brasfield & Gorrie To Design/Build at Fort Bragg; Busy with Other Projects BRASFIELD & GORRIE HAS RECENTLY BEEN NAMED design-builder for the Murray McNair School at Fort Bragg, North Carolina. The school, which is part of the federal system serving children of Army families in pre-kindergarten through eighth grade, will replace and consolidate two 50-year-old buildings. The new facility will include the latest in learning and environmental technology. Design for the $31 million project began in September, and the school is expected to be completed in spring 2014.

“We are eager to begin the construction of this unique project since it will provide a much-needed facility for the families of Fort Bragg as well as align with our goal to provide innovative construction techniques to our clients,” said Alan Anthony, vice president and division manager at Brasfield & Gorrie. “The project is designed to offer children a worldclass educational facility. Brasfield & Gorrie is honored to serve the Fort Bragg community.”

The new facility will feature small educational communities, unique

outdoor learning areas, distinct discovery areas and large, open spaces to support interactive and collaborative educational efforts. The Murray McNair School will serve students in kindergarten through the second grade and accommodate various academic levels and learning styles.

Flexible learning labs will be provided to allow lab and project-based instruction outside of the traditional classroom setting.

Brasfield & Gorrie is partnering with SchenkelShultz and Goodwyn Mills Cawood as the project architects on this facility.

This design-build project is the first task order awarded under the Georgia/South Carolina Multiple Award Task Order contract. The Murray McNair School is the second design-build contract for Brasfield & Gorrie from the U.S. Army Corps of Engineers. Brasfield & Gorrie was also awarded the Starship Barracks Renovation Project in Fort Benning, Georgia.

The firm also has been named the design-builder for a new steel processing facility for Kloeckner Metals, one of the leading metal distributors in North America. The facility at Calvert, Alabama is anticipated to be completed in 2013. The construction will be on a 16-acre site at the ThyssenKrupp Industrial Park in Calvert. Gulf States Engineering is the design partner on the project.

Brasfield has also begun construction of a 36,000 square-foot expansion of the Gardendale First Baptist Church. The addition will house a state-of-the-art preschool and children’s classrooms, an indoor playground, nurseries and a children’s worship theatre. Completion is expected in the fall of 2013.

Robins & Morton is proud to support the ABC Excellence in Construction Program

CONGRATULATIONS TO THE 2012 ABC ALABAMA AWARD WINNERS

Excellence in Construction Award Commercial — $5 to $15 Million

HOOVER 150 YMCA Birmingham, Alabama

Excellence in Construction Award

Excellence in Construction Award

Commercial — Less Than $5 Million

Industrial— $5 to $15 Million

ATHEROTECH

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Birmingham, Alabama

Kemper County, Mississippi

R

NE

IN

AW

AM

Merit Award

EE R SS NE NE IN EN W C T CE AB LLEN CE EX

AB

AL

EE R SS NE NE IN EN W C T CE AB LLEN CE EX

TH

OR

CN

AB

Excellence in Construction Award

Merit Award

Healthcare — $25 to $100 Million

Healthcare — Mega Projects

Healthcare — $10 to $25 Million

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BL Harbert International Auburn University Lowder Business Building

BL Harbert International Celebrates Last Leg of Building Façade Renovation at Auburn University’s Lowder Business Building ON NOVEMBER 28, 2012, BL HARBERT INTERNATIONAL, along with faculty and staff of Auburn University College of Business and Facilities Management, celebrated the last leg of the $6.3 million building façade renovation project with a brick installation ceremony.

Bill C. Hardgrave, dean of Auburn University College of Business said, “Lowder Hall is beautiful. Most importantly, we are thankful to have the long-standing water intrusion issue resolved. Many interior updates – to enhance the work and learning environment – have been postponed until the water issues were resolved. Now we can move forward with some interior work knowing that we have a beautiful façade to work within. The faculty and staff extend their appreciation to the crew at BL Harbert International for the great work on the building and for being responsive to our needs during the project.”

The Lowder Business Building project consists of the removal of the building envelope, mitigating existing water intrusion issues and replacing new brick, precast concrete panels, windows and roof for the five-story structural steel office tower and a two-story classroom building. The project is ahead of schedule and completion is expected by the end of the year.

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 82nd in the country, according to ENR Magazine based on 2011 annual revenues of $617 Million. B.L. Harbert International, LLC is the top green contractor in the state of Alabama and 20th in the United States.

M&D Mechanical Contractors, Inc. Eddie Evans

M&D’s Evans Achieves CSP M&D MECHANICAL CONTRACTORS, INC. OF DECATUR HAS announced that Eddie Evans has become a Certified Safety Professional, a certification overseen by the Board of Certified Safety Professionals (BCSP). “Becoming a CSP elevates a safety professional to the top of his or her field,” says BCSP Examination Director, Steven Schoolcraft.

The CSP certification is awarded to individuals who meet academic standards, satisfy professional safety experience requirements, and have passed two rigorous examinations. The examinations cover engineering and management aspects of safety, applied sciences, legal and regulatory manners, professional affairs, and other safety-related topics.

“We are extremely proud of Eddie and this accomplishment. It takes a high level of dedication to achieve this certification,” says M&D Mechanical Contractors President Alan Schollian. “We are committed to safety and Eddie’s certification will help us make our safety program even stronger.”

In addition to the CSP certification, Evans is also a Certified Safety and Health Manager (CSHM) by the Institute for Safety and Health Management (ISHM). He is a professional member of the American Society of Safety Engineers (ASSE).

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White-Spunner Construction Completes Alabama State Veteran’s Memorial Cemetery Phase One

WHITE-SPUNNER CONSTRUCTION, INC. of Mobile, has announced the completion of the first phase of the Alabama State Veteran’s Memorial Cemetery at Spanish Fort. The picturesque cemetery, located on state highway 225 in Spanish Fort, is Alabama’s first and only state veteran’s cemetery. A ribbon-cutting ceremony was held December 7. White-Spunner Construction acted as general contractor over the 13-month construction process, completed ahead of schedule. Walcott Adams Verneuille of Fairhope served as architects.

The Alabama Department of Veterans Affairs (ADVA) is the owner.

At a cost of $5.4 million the national cemetery allows for 2,776 burials in the 23-acre tract, in the initial phase. Burial sites include double depth crypts, traditional gravesites, columbarium niches and in-ground cremains sites. The detail and size of site improvements, which required careful attention to erosion/sediment control throughout the construction process, was a challenge on the rolling property.

“We met this challenge with vigilant attention to detail,” notes Allan Gustin, White-Spunner Construction, Inc. The cemetery boasts the Administration Building, Committal Shelter and Maintenance Building, constructed as follows: • Administration building, which houses the cemetery director and administrative staff is 2,746 square feet and features conference, eating and office spaces.

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• Committal Shelter (1,089 square feet) is the dedication location for services. This open, airy structure is eloquently detailed with v-joint turtle back ceilings and custom brick work.

• Maintenance building (3,696 square feet) is a full-service work shop with individual service stalls, pressure washing stall, hydraulic vehicle lift, air tool equipment, office space, kitchen and showers.

“We are honored to have been selected to build such an important facility that honors the military service of our state’s veterans.”

BL Harbert International Tops Out & Completes Projects

BL HARBERT RECENTLY CELEBRATED WITH A TOPPING out ceremony held at the New Residence Hall project at Auburn University Montgomery. This $30M construction management contract is a key component of AUM’s ongoing initiative to update and modernize the campus.

The new residence hall is located adjacent to the Taylor Road entrance to the campus, across from AUM’s recently completed Wellness Center—a $20.6M project also managed by BL Harbert.

The firm has also completed a second project for Alabama School of Fine Arts in the past year. Following the addition of a new performance arts theater, the school asked BL Harbert to return and perform an adaptive re-use of existing academic space for the relocation of their theater department.

The project involved construction of a new wellness studio, studio theater, recital hall and administrative space. All renovations were completed before the students returned in the fall and are seen as a great addition to ASFA’s improved theater program facilities.

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Goodwyn, Mills & Cawood Announces Merger with CFP Group GOODWYN, MILLS AND CAWOOD HAS ANNOUNCED ITS merger with CFP group of Nashville, Tennessee. According to Bill Wallace, executive vice president of Goodwyn Mills, “This creates a tremendous amount of momentum for our combined team, and we plan to continue to strategically expand our presence in Nashville.”

GMC has offices in Atlanta, Birmingham, Mobile, Huntsville, Montgomery and Nashville and is one of the Southeast’s largest privately held engineering and architecture firms. GMC initially opened its Nashville office in 2007. The firm has over 300 employees.

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McWhorter School of Building Science Auburn University Tenure Track Faculty Position The McWhorter School of Building Science at Auburn University seeks applications for a full-time, tenure track faculty position at the assistant/associate professor level. The selected candidate will have instructional, research and outreach opportunities in the thriving 4-year undergraduate program, the Master of Building Construction degree program, and the interdisciplinary Integrated Design and Construction master’s degree program. Required qualifications include excellent communication skills, masters degree in Construction Management, Architecture, Engineering or related field or a Bachelor degree in Construction Management, Architecture, Engineering, or a related field with a Masters of Business Administration and a minimum of three years relevant industry experience (significant research experience involving direct interaction with the construction industry can be considered as a substitute).

For a complete position description see www.cadc.auburn.edu/bsci.

To apply send letter of application, current resume and three professional references to:

Dr. Salman Azhar, Chair/Search Committee McWhorter School of Building Science 118 M. Miller Gorrie Center Auburn, AL 36849-5315 Email: salman@auburn.edu Review of applications will begin January 9, 2013. The candidate hired for this position must meet eligibility requirements for employment in the US at the time the appointment is scheduled to begin and continue working legally for the proposed term of employment.

Auburn University is an Affirmative Action/Equal Opportunity Employer. Minorities and Women are encouraged to apply.

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ABC of Alabama presents

Industry Outlook & Trends • F O R A L A BA M A •

FMI Management Consulting & Investment Banking, recently released U.S Markets Construction Overview

businesspeople.

One trend noted is that of information technology driving innovation in the energy services market. There has been a mix of both positive and negative economic signs through the capital market. The stock market is unpredictable. However, there is now a great market in private equity for energy, construction materials, engineering, building products and environmental services. Industry experts anticipate that the nation’s expanding demand for energy and fuel will result in greater opportunities for environmental consulting and remediation.

Phil Warner, one writer of the FMI article gave his construction forecast. “If 2012 does turn out to be the turning point for construction, it will be a long, slow turn. That may prove to be a safer road to recovery than a sharp V or U curve.

At this point, we expect construction put in place to grow 5% (to $826 billion) and as high as 7% in 2013 (to $882.4 billion),” said Warner. “That improving growth rate includes a solid recovery in housing, especially multi-family units and strong

This was the 29th edition of FMI’s annual publication, and it was aimed at providing readers with a thorough understanding of the economic issues affecting the construction industry.

This information can be used to both enlighten and guide your decision-making processes in the coming year.

One major highlight seen in the publication is the general atmosphere being one of uncertainty, with the recent U.S. presidential election presenting an unsure approach to economic recovery. The purpose 75% of drawing light to this subject was to highlight issues that all workers within the industry 70% should be focusing on during the election and what will happen once it is over.

The construction industry accounts for 65% 6 to 9 percent of gross domestic product.

Essentially, this means that the industry is highly interdependent on the rest of the overall 60% economy. The health of the overall economy is contingent on the health of the construction 55% industry.

Luckily construction usually trails behind the rest of the economic cycle, anywhere from 18 to 50% 24 months. This helps the construction industry to prepare accordingly. The general economy is still showing many signs of uncertainty and 45% a deficient recovery pattern. Some important considerations for the upcoming year are the 40% effects of the re-election, the downward trend of construction spending, Corporate America’s Deals Over $1B Deals Under $1B cash balances and the frustration of U.S. 35% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

PERCENTAGE OF DEBT IN BUYOUT

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CONSTRUCTION UNEMPLOYMENT RATES 25% Construction

National

Unemplyoment Rate

20% 15% 10% 5% 0% “Construction employment declined by 28,000 in May.” Bureau of Labor Statistics (BLS)

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Some important considerations for the upcoming year are the effects of the reelection, the downward trend of construction spending, Corporate America’s cash balances and the frustration of U.S. businesspeople. growth in power construction. Other areas, like commercial construction, will awaken from a long slumber to resume slower than traditional growth rates but somewhat ahead of national GDP growth.

This is more reflective of population demographics than a rapid recovery.”

As companies begin to prepare for this year, FMI urges them to make several contemplations. One consideration is the fight for talent. It is here again, and it is a primary industry challenge. Another area to begin contemplating is the upcoming retirement of baby boomers; succession plans are becoming more essential every day. Private equity investors are showing their increasing attraction to smaller deals, with the percentage of smaller deals increasing from their 2010-2011 levels. This may be another area worthy of attention.

Another consideration is the role of development found in modularization and prefabrication. These innovations will help improve the productivity of construction’s overall value. The National Institute of Standards and Technology recently stated that, “Greater

use of prefabrication, preassembly, modularization and off-site fabrication techniques and processes . . .” was one of the primary ways that the construction industry could improve productivity and become more efficient over the next 20 years.

Corporate strength in the procurement of work is also up for evaluation, as it remains a vital issue. If marketing and business development programs are being run well, they will be very valuable in the alignment of business strategy and internal process. Future success is contingent on tangible value with noticeable results.

For more information or to purchase a downloadable PDF version of FMI’s “The U.S. Markets Construction Overview 2013,” visit fminet.com.

INVESTING: ACTIVITY SLOWED DOWN IN FIRST HALF OF 2012 Quarterly U.S. Private Equity Deal Activity and Capital Invested (Billions) $300

900 800

$250

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Billions of Dollars

$200

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$150

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$100

300 200

$50

100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2007

2008

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Capital Invested 16

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Capital Invested

0 Source: Pitchbook

$0

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FMI CONSTRUCTION PUT IN PLACE Estimated for the United States

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Architecture Billings Index from The American Institute of Architects According to a press release from The American Institute of Architects (AIA), September billings at architecture firms increased at a fast pace. In fact, this is the fastest seen increase since late 2010. The Architecture Billings Index (ABI) shows the nine to twelve months between billings and actual construction spending.

The ABI from September shows that the score was 51.6, up from the mark in August. These results suggest that there

has been an increase in demand for design services. Also noted was the new project inquiry index, with 57.3.

“Going back to the third quarter of 2011, the multi-family residential sector

in residential activity will hopefully spur more nonresidential construction.”

Some highlights from the ABI are seen in the regional averages and Sector Index breakdown. The West took the

“Going back to the third quarter of 2011, the multi-family residential sector has been the best performing segment of the construction field” AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. has been the best performing segment of the construction field,” said AIA Chief Economist, Kermit Baker, PhD, Hon. AIA. “With high foreclosure levels in recent years, more stringent mortgage approvals and fewer people in the market to buy homes, there has been a surge in demand for rental housing. The upturn

highest regional average with 53.4.

Multi-family residential had 57.3, and institutional had 51. Other sectors include commercial/industrial with 48.4 and mixed practice at 47.8. The project inquiries index is 57.3.

We Recommend: www.FMInet.com

CHANGE FROM PRIOR YEAR - CURRENT DOLLAR BASIS 1st Quarter

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Residential Buildings Single Family 22% 15% -4% -26% -39% -43% 5% -5% 9% 13% 17% 15% 14% Multifamily 13% 18% 12% -3% -9% -33% -46% -3% 32% 31% 29% 13% 12% Improvements* 15% 13% 11% -5% -13% -6% 3% 2% 4% 5% 5% 4% 4% Total Residential 19% 15% 0% -19% -29% -29% -2% -1% 8% 11% 13% 10% 10% Nonresidential Buildings Lodging 15% 4% 41% 58% 25% -29% -56% -25% 4% 7% 8% 7% 5% Office 8% 8% 18% 20% 5% -24% -28% -8% 4% 6% 6% 4% 5% Commercial 9% 5% 9% 17% -4% -37% -25% 8% 5% 8% 7% 7% 7% Health Care 10% 7% 12% 14% 7% -4% -11% 0% 3% 7% 8% 11% 10% Educational 0% 7% 7% 14% 8% -2% -15% -4% 1% 2% 5% 7% 8% Religious -5% -5% 0% -3% -4% -14% -16% -21% 0% 6% 6% 5% 5% Public Safety -2% 4% 6% 31% 28% 5% -19% -10% -5% -1% 4% 5% 5% Amusement and Recreation - 1% -9% 25% 11% 3% -11% -13% -8% 4% 8% 8% 7% 7% Transportation 1% 0% 12% 14% 11% 3% 4% -7% 3% 5% 5% 6% 6% Communication 7% 22% 18% 24% -4% -25% -8% -2% 4% 4% 5% 6% 6% Manufacturing 9% 22% 14% 24% 31% 7% -33% -2% 3% 4% 5% 7% 7% Total Nonresidential Buildings 5% 7% 13% 19% 8% -14% -20% -4% 3% 5% 6% 7% 7% Nonbuilding Structures Power -14% 8% 10% 56% 23% 10% -12% 14% 10% 10% 9% 9% 10% Highway and Street 3% 9% 12% 6% 6% 1% 1% -5% -2% 1% 3% 4% 4% Sewage and Water Disposal 8% 11% 17% 7% 3% -3% 5% -11% 3% 3% 4% 5% 5% Water Supply 1% 11% 7% 6% 6% -8% -1% -8% 2% 3% 4% 5% 5% Conservation and Development 3% 10% 15% 3% 0% 10% 21% 0% 2% 2% 4% 4% 4% Total Nonbuilding Structures -2% 9% 12% 20% 11% 3% -3% 2% 4% 5% 6% 7% 7% Total Put in Place 11% 11% 6% -1% -7% -15% -11% -2% 5% 7% 8% 8% 8%

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JOIN US AS WE FIGHT FOR MERIT SHOP PHILOSOPHY.

“

Every man owes a part of his time and money to the business or industry in which he is engaged. No man has a moral right to withhold his support from an organization that is striving to improve within his sphere.”

—Theodore Roosevelt

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* To find out more, visit 2013 abc-alabama.org/join AL CONSTRUCTION NEWSplease DEC/JAN

Taylor * Bruce Marathon Electrical Contractors, Inc. 2013 Chairman of the Board for ABC of AL

ABC ALABAMA CHAPTER AL CONSTRUCTION NEWS 21

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WORK FORCE

DEVELOPM ENT

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photograph by STEPHEN DEVRIES

A Word on Workforce Development

by TODD WALKER Vice President of ABC Alabama

Workforce Development has been under ample consideration lately, and for the first time, the construction industry is about to see the results of intricate planning.

VER THE NEXT YEAR construction will see a lot of activity in regards to Skilled Workforce Development.

We are certain that the plans will yield results that the construction industry has been looking toward. After many meetings, well executed efforts from directors on our Board of Directors and putting together pieces of a puzzle that have, for too long, been strewn across the table, everything is connecting.

ABC of Alabama is fortunate to have played a part in this movement. We are happy to announce that this magazine and future issues will be highlighting numerous companies, educational institutes and other entities that are impacting skill trades in Alabama.

In October, we were asked by Governor Bentley, what exactly Workforce Development needed in order to be more successful. I am happy to share a list of the goals we have created along with our membership and partners: The first component of our plan is to ensure that NCCER, is utilized & adopted in all training programs. NCCER is a notfor-profit education foundation created to develop standardized construction, maintenance curricula and assessments

with portable, industry-recognized credentials. These credentials include transcripts, certificates and wallet cards that are tracked through NCCER’s National Registry. NCCER develops training in over 60 craft areas, offers over 70 assessment exams and has over 4,000 training locations. This standardization would help confirm a general curriculum that could be used across the board. And it would also help lead recognition in the construction industry as well as acceptance of certifications and credentials awarded by such programs. Also, only quality apprenticeship programs would be recommended and recognized.

Secondly, the Go Build Campaign will expand. It has proven its worth by improving the image of skilled trades careers. A public matching appropriation will now enhance its efforts, and we feel this is justified.

The next step in our initiative is the employment of skilled trades career counselors. These counselors will be employed in the state’s ten Workforce Investment Areas. They will work with local school officials and high school career-technical programs to ensure a better understanding of education

and training options. Trainees will be provided with a link to opportunities within the workforce, given to them by these counselors who are under the direction of Go Build Alabama.

Another area of concentration is a portal training program. We need to establish a construction 101 class that can be administered to those who wish to enter construction. At a minimum this will ensure the basic understanding of safety, hand tools, construction math, etc. Currently, there are over 6000 registrants in the Go Build database, and we believe the 101 course should be offered to those registrants that would participate.

Lastly, scholarships need to be allotted to more students. This provision is going to allow students interested in future employment the opportunity to get started.

Again, these initiatives were presented to the Governor and will have a follow up at the first part of 2013.

In closing, Workforce Development will be something you hear a lot about in the upcoming year, and we look forward to highlighting and communicating the progress being made.

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B EVE R LY CALLAWAY WORKFORCE REGION 8 COORDINATOR

&

ALLE N HAR R I S BAILEY HARRIS, ABC BOARD MEMBER

Hope for Alabama’s Economic Future?

by HUGH J. RUSHING

B

EVERLY CALLAWAY BLAMES Sputnik, the world’s first artificial satellite. This satellite, launched by Russia in 1957, set off the space race and an emphasis on education in science and mathematics to combat the presumed superiority of America’s arch cold war enemy. “That was when vocational education began to decline,” Callaway says. “Everything and everybody was focused on college education. Funding was cut for career training; trade and craft training moved into community colleges if it moved at all.”

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Now there is what Callaway terms, “The Gap”. While millions say they can’t find jobs, companies complain they can’t find a worker that can “hammer a nail”, much less show up on time and ready to work.

Callaway is a workforce specialist with the Economic and Community Development Institute at Auburn University, working in Region 8, which includes Russell, Bullock, Macon, Lee and Chambers counties. Her aim is to close the gap and match the abilities of high school graduates with the needs of modern manufacturing and construction going forward. This will require a total rethinking of how secondary education functions in the state. “The textile mill is gone. The sewing jobs are gone. Jobs for those without modern skills have disappeared,” she observes.

Callaway has a track record. Beginning in 2000, in Bay County, in the panhandle of Florida, she headed a notable “Classrooms to Careers” program, which sought to prepare students beginning high school for the types of jobs available for those who do not go on to college. Now a resident of Hurtsboro, she is working on a program in Region 8 that involves high schools and firms that need responsible, trainable employees, particularly in modern industrial and manufacturing firms. A study by the University of Alabama

photograph by STEPHEN DEVRIES

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Center for Business and Economic Research reported in 2010 that 15 percent of the total employment in Region 8 was in manufacturing, the largest subsector of employment in that area of Alabama.

Allen Harris, who heads Bailey-Harris Construction in Auburn, and an ABC-Alabama Board Member, is an enthusiastic supporter of the program. “I don’t care how good an economic recruiter you are, if you don’t have a workforce that can do the work, then you aren’t going to grow,” Harris says. “If we don’t have economic growth then there aren’t going to be any buildings needing to be built. It affects the entire economy of Alabama.”

Dr. Philip Cleveland, the State Director of Career and Technical Education and Workforce Development since January of 2012, says

to make decisions, which locked them into a single educational path in the 8th grade. With the State Board of Education’s approval in January, we will shift to a system that will match student’s interest and talents to opportunities which provide real careers.”

An increasing number of states are using statewide testing to measure real-world job skills. The ACT WorkKeys system has three components: job profiling, assessments and education/training, and emphasizes such skills as applied mathematics, locating information and reading for information. Alabama is using WorkKeys as part of its career readiness certificate which students can earn.

Another of the steps in the revamped program, Cleveland points out, is the state’s adoption of the NCCER, recognized curriculum for commercial and industrial construction. “This credentialing is very important, in that it provides transferrable credits a student can use to build up their experience level and transfer when needed.”

He also credits the Alabama Construction Recruitment Institute’s “Go Build®” program for building awareness of the solid careers and earnings which trained craft workers can enjoy.

Allen Harris says that he thinks from the top down, education officials in the state have a clearer th picture now than in the past about what needs to be done for students. “I think we are moving away from the idea that everyone is going to go to college and get a job with a desk in an office and wear a tie to work every day. [State

“For a long time, we have forced students to make decisions which locked them into a single educational path in the 8 grade. With the State Board of Education’s approval in January, we will shift to a system that will match student’s interest and talents to opportunities which provide real careers.”

D R. PH I LLI P CLEVE LAN D STATE DIRECTOR CAREER & TECH ED. & WORKFORCE DEVELOPMENT

that skills such as a solid work ethic and team work aren’t being taught and must be integrated into the curriculum of high schools so that students, when they do graduate, will be ready to add value to whatever job they find. “For a long time, we have forced students

photography by STEPHEN DEVRIES

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ALLE N HAR R I S BAILEY-HARRIS CONSTRUCTION CO., INC. Allen Harris inspects school construction site which Bailey-Harris is completing.

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Superintendent] Tommy Bice gets it—“that can be used in carpentry classes.” we need to quit pressuring every kid into Allen Harris vows, “You show me a school an educational track that they may have with a good career development program, no interest in.” and we can buy them a welding machine if Employers have complained that in the that’s what they need.” Harris, along with past, their efforts to attract workers by Steve Spencer of Russell Building Supply, in working with guidance counselors in high November, donated 50 sheets of plywood to schools have been stymied by a system the Chambers County Career Technology that rewarded counselors only for steering Center in Lafayette, Alabama. This donagraduates to college. Philip Cleveland looks tion allowed students to fabricate holiday to organized industry advisory committees, decorations and sharpen their carpentry which can work with schools in addition skills. “Career development in the 9th and to training counselors in career coaching.

10th grades is becoming a more valuable “Next year, every high school student will asset than a secondary degree because in take a career assessment test, which will these times there is a plethora of unemidentify their interest and skills and help ployed ‘diplomas’. Carpenters, bricklayers, them identify careers, which align with welders in particular, sheet metal workers those skills and interests.” and all types of other mechanics are in very Cleveland envisions a future where every short supply,” Harris says. high school has a career coach focused on Experienced observers of the construcconstruction and manufacturing to provide tion industry in the state worry that when resources and other guidance to inform stubuilding does eventually ramp up, the dents about what job opportunities exist state’s immigration law’s hollowing out of and the skills needed to obtain and keep the construction workforce will become those jobs. evident. Some think the state’s secondary Already putting such a program into education department is going to have to action is Beverly Callaway’s work in Region step up their training and development of 8. Seventeen high workers for the schools in the region “We have to get schools to future. are linking up with Beverly Callarecognize they need to teach way the industry. Students sees Alabama and prepare students for take field trips to manat a critical juncufacturing and con- today’s occupations, not those ture for the state, struction sites to learn of a generation ago.” where the need about the job opporfor training protunities available and the skills required grams necessary for high tech, high wage in order to perform them. “We have to get jobs provided by the state’s industries is schools to recognize they need to teach and imperative. “We promised these firms a prepare students for today’s occupations, skilled, trained workforce when they were not those of a generation ago,” Callaway recruited to the state and education at all says. The program will take over 5,000 stulevels must provide that training.” dents to over 25 companies during 2013.

Callaway points to a meeting held in July Cleveland says that he hopes the industry with representatives of industry, education can help perpetually short-funded techniand economic development as a crucial cal education by strategic donations. “You first step in “bridging the gap” by changing look in a construction site waste pan, and programs, policies and whatever is necesyou’ll see things we desperately need in our sary to focus on career development. schools. What is trash or scrap to some, Her advice to construction and industry are things we can use and even re-use. We is, “Get involved with the Career Tech High even teach masonry classes, and before the School in your area. Send an employee to mortar dries the class can knock it off and work with the students in the construction re-use the block and brick. Wire scraps are department of that school. You’ll be amazed needed for electrical training. Scrap lumber at what they are doing and learning, but

photograph by STEPHEN DEVRIES

$956 BILLION Student Loan Debt

WHY COLLEGE?

Often it is just debt and no degree!

America is beginning to ask: Why college?

The widespread availability of student loans and eased admission policies still don’t mean that many of those entering college will leave with a degree. Degree granting institutions in Alabama have a four-year graduation rate ranging from 0.9 percent at Virginia College to Auburn University’s 64 percent and Alabama’s 64.5 percent rates. Birmingham’s UAB has a four year rate of just under 38 percent. Forprofit institutions have the lowest graduation rates, the most generous admission policies and the highest percentages of enrollees with student loans. The bottom tier of five Alabama schools with the lowest graduation rates (ranging from 0.9 percent to 8.7 percent), include three for-profit schools.

The Federal Reserve Bank, in late November, reported student-loan debt rose 4.6 percent to $956 billion in the third quarter of 2012.

Eleven percent of student-loan balances were 90 or more days behind in payments, a rate of delinquency which exceeds credit cards.

Nearly all student loans—93 percent last year— are made directly by the government which does little to qualify the borrower’s ability to repay and doesn’t demand any collateral.

Student loans can’t be extinguished by bankruptcy, and experts worry that student loans will eventually shut out a generation of consumers from credit. Undergraduates can borrow up to $57,500 to cover tuition and living expenses. The current interest rate on a $10,000 loan for an entering freshman under the government’s Stafford Loan program is 6.8 percent with a two percent upfront origination and federal default fee. Student don’t have to begin repayment until they graduate or quit school. At the current interest rate student loans totaling $57,500 would require a repayment amount of $466 per month.

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they need your help and guidance to ‘stay up to speed’ with industry needs.”

Recently Callaway accompanied a field trip from a Chambers County school to West Point Industries in West Point, Georgia.

“When they heard that directly out of high school they could get a job earning $30,000 to $50,000 in their first year, they were asking for job applications.”

“We are showing these students that starting salaries can provide a living wage. Additionally, if they want to continue their educa-

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tion, many times these firms will pay their tuition so they could work and earn a degree if that is what they want at the same time,” Callaway concludes.

It may be that the old days, pre-Sputnik, with Career Tech (formerly known as Vo-Tech) programs in high schools, technically trained high school graduates and young people with team skills may soon return to benefit all of Alabama and its developing, modern industrial base.

photography by STEPHEN DEVRIES

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TOD D WALKE R AN D GARY PH I LLI PS TALK TO PREMIER SERVICE CO. STUDENTS ON THEIR COMMITMENT TO TRAINING.

Growing Your Own Premier Service Company has started its own apprenticeship program.

by HUGH J. RUSHING

When Gary Phillips of Premier Service Company in Tuscaloosa found that only 90 students were enrolled in the entire state in one of his employee’s apprenticeship programs, he decided that wasn’t going to “cut it.”

Phillips knows something about employee training. He did his apprentice-

photograph by STEPHEN DEVRIES

ship through ABC training and then taught electrical classes for four years. He has now launched his own internal apprenticeship program for his 125-employee firm. Twenty five Premier Service Company workers have begun a four-hour-per-week, four year-long program. Classes will be held 50

out of the 52 weeks in a year.

At the end of the program the payoff for graduates is that, they will have their journeyman electrician and journeyman plumber cards, and be both certified HVAC and Alarm Service technicians. On top of that, the graduates will have their Commercial Driving License and their OSHA ten-hour training certificate.

For Premier, a full-service electrical, heating, cooling and alarm contractor, the payoff will be a cadre of cross-trained employees that can be flexibly used across the business. “If business slows in one area,

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we will able to transfer employees over to another area. It will reduce layoffs,” Phillips says.

Such cross training makes perfect sense Phillips says. “We are using NCCER materials and we’ve noted a lot of similarities. Blueprint reading, for instance, is a core skill that’s taught similarly no matter what the trade training is.” Other sections of the course that are correspondingly similar include small tool use among others.

One of Phillips own employees, Darel McKinney, is in charge of organizing the training, and in-house personnel of Premier will be called on to deliver their expertise to the classes. “I have decided that this program will enable us to train more employees at less cost and with more control than we would have otherwise.” Phillips points out that many vocational classes are offered only in the daytime, making holding down a job impossible for many students.

Unless one is only a laborer, already is in an apprenticeship program or already completed course work and needs only working hours to obtain a journeymans card, Premier employees without apprenticeship training are required to be in the course. “We have a strict attendance policy and have promised that we won’t let day

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work interfere with training,” Phillips points out.

Premier’s 22,000 square foot building on 15th Street in Tuscaloosa has ample space for training facilities. A specially constructed class room has see-through work spaces demonstrating proper wiring and conduit runs as well as transparent electrical panels and transformer for demonstration and training. A self-contained air conditioning system used for training utilizes four different types of duct work. An open ceiling demonstrates the use of cable trays and raceways. The training space even has a work-light system, enabling real-life conditions to learn under.

Premier also has a pre-fabrication area adjacent to the training area with a full sheet metal shop, which will enable students to learn how to fabricate needed metal subassemblies as part of their training.

Even real-world conditions have been worked out, Phillips says.

“We took a four hour class to a Habitat for Humanity house in December and spent the class time totally wiring a house. This is something that schools would have trouble doing because of insurance concerns, but it’s something quite easy for us to accomplish.”

Such realistic work makes for an even greater training experience Phillips says.

“We are excited about this whole program. We think that it is a program that will really benefit both our students/employees and the business as a whole. We will have a better-trained and more flexible work-force at the end of the program.”

photography by STEPHEN DEVRIES

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GARY PH I LLI PS AN D B I LL R ICE WITH PREMIER SERVICE COMPANY

PROGRESSIVE

D I SCI PLI N E

by BART WILDER – Hoar Construction Chair, 2013 ABC Safety Committee

CREATING A SAFE WORKPLACE BEGINS WITH A PROACTIVE to positively encourage safe work behavior (i.e. “Being Caught approach to identify safety and health hazards in the working Safe”, “Good Catch”, Going Above and Beyond and prize drawenvironment and establishing means to mitigate such hazards. ings for reporting safety hazards or good safety practices); disThis proactive approach encourages employees to be trained and cipline is only one method. coached in safe work practices and utilizes discipline as part of When discipline is necessary to effectively manage unsafe a company’s comprehensive safety program. When a safety hazemployee behaviors, companies should utilize a progressive ard involves employee misconduct, it disciplinary approach is important to correct the behavior The core component of a comprehensive designed to provide immediately to prevent incident or safety programs should be centered structure and guidance injury and follow up with corrective on positive reinforcement, designed to to improve and prevent training and/or discipline. the recurrence of unsafe empower, educate and coach employees The core component of a comprebehaviors. hensive safety programs should be how to identify, minimize or eliminate A progressive disciplincentered on positive reinforcement, workplace hazards. ary program is typically designed to empower, educate and implemented as part of a coach employees how to identify, minimize or eliminate workcompany’s comprehensive safety program and is a system of displace hazards. Employees must be properly safety-trained, to ciplinary actions where the penalties increase with subsequent develop the skills needed to identify relevant hazards in their offenses. Rather than terminating an employee for a first-time work environment and the means by which to minimize or elimior minor infraction, a progressive disciplinary program provides nate in order to perform their work safely. There are many ways an opportunity for the employee to correct the unsafe behavior:

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X XX XXX

1ST OFFENSE: VERBAL WARNING (DOCUMENTED)

2ND OFFENSE: WRITTEN WARNING (DOCUMENTED) 3RD OFFENSE: SUSPENSION, DEMOTION OR TERMINATION (DOCUMENTED)

NON-SERIOUS Initial, isolated or rare instances of infraction, which do not result in danger to the employee, property or others. Non-serious offenses may be corrected through non-disciplinary coaching and instruction.

SERIOUS Incident that results in serious injury, loss of life or significant loss of property. Employees are subject to disciplinary action, including immediate termination.

FALL PROTECTION An employee found to not be utilizing fall protection in an area requiring fall protection is subject to disciplinary action, including immediate termination.

TRENCH/EXCAVATING An employee found not utilizing appropriate protective systems in an area requiring Benching, Sloping, Shoring, and Shielding protection is subject to disciplinary action, including immediate termination.

Depending upon the facts of the situation and the nature of the infraction, an employer reserves the right to combine - or skip - steps identified in a progressive disciplinary program.

Some infractions may be grounds for immediate discipline even termination based on the severity (i.e. fall protection, trench and excavation or insubordination) of the violation.

All employers are required to comply with OSHA (Occupational Safety and Health) standards, providing a safe and healthful workplace that is free of recognized hazards. Employers can demonstrate OSHA compliance through the enforcement of a company-mandated Health and Safety Program. When an infraction occurs, a progressive disciplinary approach provides a tool for employers to determine the appropriate level of response and may defend against a citation for “Unpreventable Employee Misconduct” if the employer has proven they have adequately:

ESTABLISHED WORK RULES DESIGNED TO PREVENT

SAFETY VIOLATIONS (HEALTH & SAFETY PROGRAM)

COMMUNICATED THE RULES TO EMPLOYEES (SAFETY TRAINING) TAKEN STEPS TO DISCOVER VIOLATIONS (SAFETY INSPECTIONS)

To demonstrate program compliance, all disciplinary actions should be documented indicating actions taken (i.e. verbal warning, sent home for the day without pay, terminated, etc.).

First-offense verbal warnings should be noted appropriately to provide a record of enforcement. Documenting disciplinary actions can be used to demonstrate that discipline has been enforced in a firm, fair and consistent manner. A notice or warning report of a Health and Safety Program violation should be given to the employee and a copy retained in the employee file.

(If applicable, the notice should also be sent to the employee’s supervisor or employee representative.)

Before utilizing a progressive disciplinary approach an employer should determine:

WERE THE SAFE WORK PRACTICES AND EXPECTATIONS CLEARLY DEFINED TO THE EMPLOYEE WAS THE APPROPRIATE SAFETY TRAINING PERFORMED WAS THE EMPLOYEE AWARE OF COMPANY’S DISCIPLINARY PROGRAM WOULD ANY OTHER EMPLOYEE BE TREATED DIFFERENTLY

Utilizing a progressive discipline approach to manage unsafe employee behavior not only demonstrates enforcement with OSHA’s standards but provides guidance to determining the appropriate response when an infraction occurs. A company’s greatest resource is its employees. A progressive disciplinary program is one more way an employer can effectively prevent

Employees must be properly safety-trained, to develop the skills needed to identify relevant hazards in their work environment and the means by which to minimize or eliminate in order to perform their work safely. injuries on projects and send employees back home to their families, no worse for wear than the way they showed up for work but maybe a little dirtier and tired from a good day’s work.

We Recommend: www.abc.org/safety

EFFECTIVELY ENFORCED THE RULES UPON DISCOVERING VIOLATIONS (WRITTEN WARNINGS)

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Key ABC Looks to

L E G I S LATI O N AHEAD OF 2013 ALABAMA L E G I S L AT I V E S E S S I O N

by HUGH J. RUSHING

C

CONSTRUCTION MANAGER AT RISK LEGISLATION There is proposed legislation to allow for Construction Manager, at-risk and Design/Build projects for public works in Alabama. This legislation has a statute to clarify how tax-exempt entities may purchase materials for construction projects.

These proposals are nearly ready to be offered in the 2013 Alabama Legislative session that begins in February.

The most important piece of legislation, at least from the construction industry and taxpayer viewpoint, is landmark legislation, which draws Alabama nearer to alternative delivery methods in use in nearly every state in the U.S. Only Iowa and the District of Columbia along with Alabama offer limited vertical projects for public works, such as Construction Manager (CM) at-risk. Illinois bans such project delivery methods all together for public works.

The other states offer at least some type of CM at-risk, for at least part of their state agencies.

Key differences are whether the CM atrisk can perform part of the work, how much and under what conditions.

Traditionally, government entities have contracted for design work, placed plans out for bids, selected the lowest qualified bidder for construction and have awarded contracts.

In short, this is known as DBB—Design, Bid, Build. There are drawbacks associated with this type of system. Some include: projects timelines are lengthened, in that the entire design must be completed before bidding starts; the owner assumes the risks of errors; and the initial low bid does not always result in the best value for the taxpayer’s funds. Classic DBB

also offers ample opportunities for litigation as one party seeks to push risk onto another or to pass the blame should something go wrong.

The construction manager (CM) at agency concept, which has been allowed in Alabama, lets the construction manager manage the process. However, it is still a system in which the owner is at-risk, in that they directly employ the trade contractors involved in a project. The CM at agency assists and advises the entity awarding the contract but does not perform any construction services. Neither can it use its own workers in maintenance, repair, renovation or any project it is involved in.

Experts say that while the CM agency can reduce staff work for an awarding agency, it leaves open the possibility of cost overruns and a less-than-optimum solution for the public agency responsible for expending taxpayer dollars.

CM at-risk goes much further. It allows the CM to supply preconstruction services, competitively bid subcontracts and hold those contracts, take responsibility for the performance of the work and to guarantee costs and schedules.

The potential for collaboration, transparency, decreased time frames and simplification of the building process are all arguments for CM at-risk in the public sector.

Some constructors have worried that CM at-risk legislation would produce a concentration of large general contractors self-performing the work that normally sub-contractors would receive. The legislation provides that the CM at-risk can perform no more than ten percent of the guaranteed maximum price of the project. Additionally, work performed by a subcontractor in which the CM at-risk has any ownership interest will count toward the ten percent limit.

Provided for in the bill is the way in which a CM at-risk will be chosen. The two-step process will by qualificationbased. Using the existing prequalification procedure already in the Alabama Code, candidates will submit competitive proposals, which will be scored and ranked by the awarding authority.

The highest scoring candidate will then negotiate to enter into a guaranteed maximum price contract to manage the work.

Similarly, first tier subcontractors will be selected by the CM at-risk using a similar procedure. The CM at-risk is not obliged to select first tier contractors on price alone.

The selection process outlined in the proposed legislation is intended to be transparent. Criteria for grading will be published, as will be the awarding authority’s evaluations of proposals. CM at-risk’s evaluations of subcontractor’s proposals

“The most important piece of legislation, at least from the construction industry and taxpayer view point, is landmark legislation which draws Alabama nearer to alternative delivery methods in use in nearly every state in the U.S.”

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will also be published. Experts say that such transparency will result in a level playing field for all qualified sub-contractors.

Tim Hightower, chair of the ABC Legislative Committee, says that he thinks the care with which the proposed measure has been crafted shows. “I’m hearing that most everyone who has taken time to study the bill and its provisions is pretty much on-board with it. It will be good for the industry; it will be good for the people who pay their taxes for public works projects in this state.”

With the exception of Alabama Department of Transportation (ALDOT) contracts and the Alabama State Docks projects, all public works in the state would eligible to use the

which can delay payment for up to ninety days. Additionally, some contractors have been forced to pay sales and use taxes in products and services bought for use on a tax-exempt project if the contractors themselves paid the vendors. In some cases, vendors have cut off shipments to contractors due to confusion and delays in paying material’s invoices.

Bruce Taylor says that the bill will streamline the whole procedure for exempted purchases in the state. “It’s certainly something that needs to be done to make the whole system more efficient and so that vendors don’t have to wait for their payments.”

In commenting on the proposed bill, Tim Hightower says that it will save owners, subs and general contractors money in the long-run.

“Having to split our labor and materials on projects requires extra personnel to process invoices, to keep up with the bookkeeping and to make sure things are as they are supposed to be. We are working with the Revenue Department and the state’s fiscal authorities to make certain they understand and will hopefully support what is a measure that will ultimately save money and provide a greater value to the taxpayers of Alabama.”

“The potential for collaboration, transparency, decreased time frames and simplification of the building process are all arguments for CM at-risk in the public sector.”

CM at-risk procedures unless they are specifically exempted from the state’s competitive bid laws.

According to an American Institute of Architects study of state laws on CM at-risk, policy makers and legislators see the CM at-risk as a “cost effective and time conscious alternative to the design-bid-build process.” The traditional architect/engineer – client relationship is maintained in most state’s legislation.

2013 ABC Chairman Bruce Taylor of Marathon Electrical Contractors believes the time is ripe for Alabama to put into place CM at-risk legislation. “I think it is a fair bill to general contractors and even more importantly to the taxpayers of the state,” Taylor said. “Alabama deserves the best projects for their tax dollars, and we believe this legislation will deliver that, while at the same time preserving a competitive atmosphere, which will produce greater value for our state.”

S

SALES TAX EXEMPTIONS FOR CONTRACTORS WORKING ON PUBLIC WORKS In an effort to clear the air on the matter of sales tax exemptions for public projects, this proposed bill would allow the state’s Department of Revenue to grant certificates of exemption from sales and use taxes to contractors and their subs working on projects for tax-exempt entities, such as municipalities, school boards and other governmental units.

The next effect of the bill will be to speed payments to vendors of both contractors and subs. Currently, to take advantage of their tax exempt status, contractors have to funnel bills for direct payment by governmental entities, a procedure

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In connection with the CM AT-RISK LEGISLATION, ABC has set up an INFORMATIONAL, EDUCATIONAL WEBSITE which features A BILL DRAFT FREQUENTLY ASKED QUESTIONS ADDITIONAL INFORMATION ABC-ALABAMA.ORG/GOVERNMENT_AFFAIRS2/ ISSUES/2013_CM_RISK_LEGISLATION.ASPX

BL HARBERT

BL HARBERT

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K

Jim Rein reects

on the A.C.N. Cornerstone Award

by HUGH J. RUSHING

2012 CORNERSTONE AWARD WINNER

Jim Rein leans back in his chair in his modest corner office at BL Harbert International’s corporate office.

Outside, autumn trees are gilded with color. It is to say, quite a distance from South Africa, where Rein grew up.

The 2012 Cornerstone Award winner says he thought things went very well at the October Excellence in Construction Awards dinner. “Sort of like a marriage, you do a lot of planning, and then in just a short while the ceremony is all done. I liked the fact that things moved along, and we didn’t take up too much of people’s time.” Rein is like that. A man with a clear eye who wants very much not to take a lot of credit.

“An award like the Cornerstone was very humbling for me. I think it is really a reflection on the company,” Rein comments. As President and Chief Operating Officer for BL Harbert International, Rein has overseen phenomenal growth of the firm in the past twenty years. Yet he remains modest.

Sharing the credit seems instinctive to Rein.

As he looks back on his career, Rein sees a lot that’s changed, some things for the good and some things not so good. “We are certainly more efficient than we have been as an industry. We have a higher regard for safety and a higher regard for the needs of people. Technology has certainly changed by leaps and bounds.”

But Rein notes that what used to be done with a handshake is now done from a legal point of view. “A firm makes a mistake, and the first thing they do is to hire a lawyer and make it almost impossible to reach a

photography by STEPHEN DEVRIES

settlement.” There’s also the problem with sureties for sub-contractors as well. “Sub’s bonds formerly were much easier to cash in compared to now. I’m afraid we have too much of a legalistic society.”

But at the same time, Rein’s work on four continents still has him believing that the workforce in Alabama is superior. “We have great people here and great contractors in our state that are fiercely competitive and that serve to make us all better.”

Rein also sees today’s construction project manager as a much more rounded executive than in the past. “Today’s PM has far more responsibility than when I started out. There’s safety, numerous regulations, the subtleties of the modern construction contract; they have to be more agile and balanced. Most of today’s PMs have the talent to run a small company, which is essentially what they are doing.”

Rein joined the Harbert organization in 1979. He earned his B.S. in Civil Engineering from the University of Capetown in South Africa, a degree in soil mechanics at the Imperial College of London and a M.S. in Construction management at Samford University. After projects in South America, Rein relocated to Birmingham, in 1986, he supervised the construction of the Galleria, still the state’s largest shopping complex.

Rein and his wife Joan have four sons ranging in age from 31 to 37. He was an active coach for his son’s soccer and basketball games for many years.

As Rein looks to the future, he says that he sees less infrastructure work for the construction industry than there has been in the past. While he is hopeful that

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2012 CORNERSTONE AWARD WINNER

Washington will come to an agreement to avoid a fiscal catastrophe, he’s unsure where future funds will go in government construction.

“A lot of work on embassies and such has been due to security concerns,” Rein says. “Much of the stimulus money went to small union-friendly projects. What we really need is something forward thinking like the Eisenhower Administration’s Interstate Program going forward.”

Private sphere construction will track the economy, Rein feels, and will mirror general economic conditions for the most part.

Rein also worries that workforce development isn’t keeping on track, looking to the future needs of the construction industry.

“We’ve got to solve the problem of immigrant workers with some sort of permit program, allowing them to be in the U.S. legally. It may not mean formal citizenship, but we don’t need to criminalize people who are honest and hardworking and essential for the construction industry.” He praised the Alabama Construction Recruitment Institutes “Go Build” campaign. “I think that is a terrific way to involve young people and inform them that they can have a really good life and income in the construction business.”

K

BUILDING

ALABAMA U P D AT E S & R E P O RT S

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2012 AWARDS

Illustration by Name Here

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photograph by NAMEGOES HERE

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Alabama Construction News Honors Excellence in Construction

T

HE

23RD

ANNUAL

EXCELLENCE

IN

Construction awards dinner was held on October 18th at Birmingham’s Sheraton Hotel.

The dinner honored individuals and companies achieving excellence in construction with high-profile projects. Also honored was 2012’s Cornerstone winner, Jim Rein, ABC’s general contractor of the year, BL Harbert International and subcontractor of the year, Ivey Mechanical.

The Excellence in Construction Awards were created to acknowledge the hard work and innovation of those construction companies that are exemplars in the industry. The awards are judged with consideration of quality, value, performance and ability. They serve to create an ever-higher standard for excellence.

“The Excellence In Construction awards are very important in our industry. The program is executed with a high level of professionalism,” says Mike Rogers of Rogers & Willard Inc. of Mobile. “The recognition that is provided to the sponsors and award winners is very important. There are very few programs like this in our industry.” Rogers continues, “The regional recognition helps to raise awareness in our industry,

for owners, architects, builders, subcontractors and suppliers. Additionally, having a yearly competition raises the game of all those who participate.”

Rogers also acknowledged the importance of knowing that you are working on a project that might be a contender for a regional or national award. He said this gives each project team an incentive to work hard with outstanding achievements being recognized at the awards banquet.

At this year’s banquet 500 construction executives along with guests got to see those deserving recognition be honored for their companies’ achievements. There were seventeen Merit Awards and 41 Obelisk Awards.

Master of ceremonies, J. David Pugh, of Bradley Arant Boult Cummings recognized each winner. Pugh and his colleage James Archibald III applauded the ABC staff for the organization of the event, noting energy, enthusiasm and attention to detail.

“The Associated Builders and Contractors of Alabama’s Annual Excellence in Construction Awards dinner brings together the most prominent construction industry leaders in Alabama to celebrate the many outstanding projects they have built

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Alabama Construction News Honors Excellence in Construction throughout the year,” said Archibald. “This year, awards were given to Alabama-based contractors and subcontractors for an incredible array of critically important projects for the future of our Country, including state-ofthe-art hospitals, military bases, courthouses, schools, power plants and embassies.”

Archibald also recognized his company’s role within the Excellence Awards. “Bradley Arant Boult Cummings lawyers have the privilege of representing many of the companies who received awards at the Excellence Dinner. Our firm was particularly honored to present the 2012 Cornerstone Award to Jim Rein, the COO of BL Harbert International,” said Archibald.

“Mr. Rein personifies the skill, professionalism and integrity that the Cornerstone Award represents, and his dedication and commitment to teamwork has helped make BL Harbert International one of the most successful construction companies in the world.”

Bruce Taylor, chief operating officer at Marathon Electrical Contractors also sees the importance of the excellence awards. He works hard to push his company toward standards set in place in order to receive these awards.

Taylor also notes this as an annual opportunity to showcase what his company has been doing all year.

“Our employees take pride in what they do, and this allows them to show their work to the entire industry. When they walk across the stage and receive an award for something they spent a year or two of their life on, they remember it forever,” says Taylor.

ABC President Jay Reed looks forward to the Excellence banquet every year. He sees this annual opportunity as a way to reach out to those who are going above and beyond.

He noted each year’s banquet as a humbling experience. “Humbled once again,” added Reed, “The industries belief in this function makes it the showcase it is. To highlight their success once a year is the least ABC can do to prove merit shop contractors build better and build

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safer, but also to display the location of the project winners building the world. We are honored to provide this vehicle to highlight the best in our industry.”

ABC board member and first time attendee to the Excellence Awards, Allen Harris, of BailyHarris of Auburn, noted Jay Reed’s efficiency and “appropriately timed and fun filled happy hour.” “It is exciting to be on the board of such a progressive group with supreme leadership and unlimited potential, “ said Harris. “ We are going to ‘Build Alabama!’”

Ivey Mechanical Co., subcontractor of the year, is an active participant in ABC throughout its twelve locations in the United States. Through this involvement they have won several ABC Excellence in Construction and Safest in the Industry awards.

President Buddy Stewart believes the company’s affiliation with ABC to be a vital part of the company’s Alabama construction relations.

“In 2005 we established a division in the Birmingham area to better support the Alabama contractors that we had previously worked with all over the country. It has been a pleasure to get to know the construction industry of Alabama on a more personal level. ABC of Alabama has been an integral part of fostering those relationships,” said Stewart. “Being awarded Subcontractor of the Year was an honor for Ivey Mechanical. Jay Reed once stated that he wanted ABC to be the association everyone sees as a family. For us this award is a confirmation of acceptance into that family.”

ABC extends a thank you to this year’s judges for their contribution to the Excellence Awards: Katherine Lynn, Alabama State Building Commission; Joe Rogers, Alabama General Contractors Licensing Board; Keith Rahn, Auburn University; Tim Leopard, University of Alabama and Jim Bambarger, TTL.

COMMERCIAL UNDER $5 MILLION

COMMERCIAL $10 – 25 MILLION

Gray Construction Austal Office Complex

Robins & Morton

COMMERCIAL $25 – $100 MILLION

Atherotech Atherotech Diagnostics Inc. is a diagnostic testing and disease management company located in Birmingham. Robins & Morton was selected to provide construction services for a 10,000 square-foot addition and alteration project. The project, an adaptive re-use of an existing facility, required extensive demolition of existing slab and MEP. It also required modifying and adding new HVAC and electrical requirements to fit new user requirements as well as finishes to make way for the new lab and office space.

400 Shades Creek Pkwy Birmingham, Alabama 35209 (205) 870-1000 robinsmorton.com

COMMERCIAL $5 – 10 MILLION

BL Harbert International, LLC Dynetics Solutions Complex The Dynetics Solutions Complex, located in Huntsville, was the second project awarded to BL Harbert as general contractor by Dynetics, Inc. This new facility is 226,500 square feet. At $45.9M, the building houses 400 employees, and the two main wings of the facility are connected by a central spine, which contains high-end exposed structural finishes and exposed MEP finishes, while keeping an architectural appeal. The architect for this project was Fuqua & Partners of Huntsville.

Post Office Box 531390 Birmingham, Alabama 35253 (205) 802-2800 blharbert.com

Robins & Morton

COMMUNITY / PUBLIC SERVICE

Hoover YMCA Hoover YMCA was an adaptive re-use of a former Bruno’s Grocery located on John Hawkins parkway in Hoover. The $5.2 million facility has over 66,000 square feet and took six months to complete. Construction of the Hoover YMCA included a new elevated walking track, gymnasium, aerobics, childcare area, soft surface playground and covered entry, free weights, cardiovascular, game room, spin room, entry lobby and men/ women’s locker rooms.

Hoar Construction Maritime Park Development

400 Shades Creek Pkwy Birmingham, Alabama 35209 (205) 870-1000 robinsmorton.com

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ENGINEER

ELECTRICAL OVER $10 MILLION

Building & Earth Sciences Redstone Gateway Phase 1

Bright Future Electric

EXTERIORS (MASONRY, PRECAST OR STONE)

Brookwood Women’s Medical Center The Brookwood Women’s Medical Center and Infrastructure Upgrade project was a unique project due to the complexity in design, use of leading edge technology and scheduling. As a result the owner can boast that they offer healthcare services to women and infants that are unavailable anywhere else.

Selective Masonry Moore Hall Renovation

3420 Richard Arrington Jr. Blvd. N. Birmingham, Alabama 35234 (205) 326-1409 brightfutureelectric.com

ELECTRICAL COMMERCIAL UNDER $2 MILLION

Marathon Electrical Contractors Alabama School of Fine Arts

ELECTRICAL COMMERCIAL $2 - $10 MILLION

Marathon Electrical Contractors Madison City High School Phase 3 – Tuscaloosa, AL

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FEDERAL GOVERNMENT/MILITARY UNDER $10 MILLION

Brasfield & Gorrie North Troop Medical Clinic at Ft. Stewart

FEDERAL GOVERNMENT/MILITARY $10 – $100 MILLION

KBR New Federal Building and Courthouse

FEDERAL GOVERNMENT/MILITARY MEGA

HEALTHCARE MEGA

Caddell Construction

Hoar Construction

U.S. Embassy, Djibouti, Djibouti

Benjamin Russell Hospital for Children

HEALTHCARE UNDER $10 MILLION

HISTORICAL RESTORATION/RENOVATION UNDER $25 MILLION

Hoar Construction Medical Center Enterprise

Rogers & Willard

HEALTHCARE $10 – $25 MILLION

Cullman First United Methodist Church

Hoar Construction St. Vincent’s St. Clair Hospital & Medical Office Building

The Cullman First United Methodist Sanctuary was recently renovated.

Circumstances surrounding this renovation were born from one of the worst natural disaster outbreaks to ever hit the state of Alabama. The renovation/ restoration was very intense in labor and in the thought processes, as the goal was to fully restore the building while modernizing its infrastructure. In a rather symbolic coincidence, the restoration was completed in time for services to be held on Easter Sunday.

P.O. Box 7394 Mobile, Alabama 36670 (251) 479-2675 rogerswillard.com

INDUSTRIAL $15 – $25 MILLION

HEALTHCARE $25 – $100 MILLION

Hoar Construction

G.A. West & Company

Lakeway Regional Medical Center

Lenzing SL1 Restart Project

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INDUSTRIAL $5 – $15 MILLION

INDUSTRIAL $25 – $100 MILLION

G.A. West & Company Plant Crist

Robins & Morton Kemper County IGCC Steam Turbine Generator

INFRASTRUCTURE/HEAVY

Robins & Morton’s scope at the Kemper County energy facility consists of the installation of a Toshiba 360 megawatt steam turbine and generator as well as a water cooled surface condenser. These systems include approximately 5000 linear feet of pipe, 50 instruments and 20,000 linear feet of cable. The surface condenser will include approximately 800 linear feet of plate weld, along with the installation of various support systems.

Caddell Construction Training Area Roads & Bridges Phase C, Ft. Benning

400 Shades Creek Pkwy Birmingham, Alabama 35209 (205) 870-1000 robinsmorton.com

INDUSTRIAL UNDER $5 MILLION

INSTITUTIONAL $5 – $10 MILLION

C.S. Beatty Construction

BL Harbert International, LLC

International Paper Pine Hill Mill Landfill Expansion

Dorothy Day Jemison Theater

C.S. Beatty Construction Inc., a Birmingham based site development contractor, recently completed a landfill expansion project at International Paper Company’s Pine Hill, Alabama mill. The work included clearing, mass grading, excavation and liner system installation over a 16-1/2 acre site. The project will allow International Paper more capacity to dispose of their waste in an environmentally friendly manner. C.S. Beatty Construction safely worked over 30,700 man-hours on this project.

The new Dorthy Jemison Day Theater at Alabama School of Fine Arts (ASFA), located in downtown Birmingham was a small but complex project. BL Harbert served as general contractor for this new 500-seat performance arts theater. The engineered acoustics system not only allows audience members to hear the performances more clearly but also helps keep out the noise of Interstate 20/59, which runs adjacent to the school.

2129 Richard Arrington Jr. Blvd. S. Birmingham, AL 35209 205-879-5788 csbeatty.com

Post Office Box 531390 Birmingham, Alabama 35253 (205) 802-2800 blharbert.com

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INSTITUTIONAL $10 – $25 MILLION

MECHANICAL $10 - $25 MILLION

Blalock Building Charles A. Brown K-5 Elementary School

CM – INSTITUTIONAL $10 - $25 MILLION

Superior Mechanical Benjamin Russell Hospital for Children The 762,000 square-foot Benjamin Russell Hospital for Children represents the largest single healthcare project ever built in Alabama. Superior Mechanical installed the medical gas and domestic water systems for the 12-story project, which involved more than 170,000 lineal feet of piping. Much of that work was preassembled at a fabrication facility four blocks from the jobsite after a colocated team of BIM experts coordinated the MEP systems. A year of preconstruction planning and two years of on-site work employing lean manufacturing techniques generated savings on this $12.4 million plumbing contract.

3700 Fifth Court North Birmingham, Alabama 35222 (205) 834-9001 superiormechanical.com

BL Harbert International, LLC Auburn University of Montgomery – Wellness Center

MECHANICAL COMMERCIAL UNDER $2 MILLION

The students at AUM came together and asked for a new Wellness Center. In order to finance this project, students voted in favor of raising tuition several years ago. AUM leadership and Infinity Architecture worked together to design this $20.6M structure. BL Harbert’s construction management team is honored to have been a part of this new, beautiful facility.

At 73,500 square feet, it is a sign of AUM’s ongoing initiative.

Post Office Box 531390 Birmingham, Alabama 35253 (205) 802-2800 blharbert.com

Adkins & Kimbrough Mechanical

MECHANICAL OTHER

James C. Bailey Center

S&S Sprinkler Company ThyssenKrupp Steel USA

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Twelve stories of history, two of which were damaged in the April 27, 2011 tornados, turned into a new concept building of the future with state of the art energy efficiency at Wallace State Community College’s James C. Bailey building in Hanceville.

4415 Turin Drive Bessemer, Alabama 35020 (205) 432-4000 jadkinsmechanical.com

MECHANICAL COMMERCIAL $2 - $10 MILLION

MECHANICAL INDUSTRIAL UNDER $10 MILLION

Ivey Mechanical Company

Adkins & Kimbrough Mechanical

Community Health Systems Birmingham Data Center The Ivey Mechanical Company Alabama Unit was honored to partner with Community Health Systems, Gresham Smith & Partners and Brasfield & Gorrie to build a Birmingham Data Center for this expanding company.

The facility is used to store patient information and medical records for the hospitals owned in Alabama. It is also used as a backup to the main Data Center, which serves over 140 hospitals nationwide.

7354 Cahaba Valley Road Birmingham, Alabama 35242 (205) 949-6000 iveymechanical.com

MECHANICAL $50 - $100 MILLION

Dollar General Distribution Center This state of the art facility is the tenth Dollar General Distribution Center to be erected, and is located in Bessemer. The project will be a boost to the economy of the area by adding six hundred full-time positions to an area that is greatly in need of jobs. Adkins & Kimbrough is proud to be a part of this economic growth.

4415 Turin Drive Bessemer, Alabama 35020 (205) 432-4000 jadkinsmechanical.com

OTHER CONSTRUCTION UNDER $2 MILLION

Hardy Corporation Benjamin Russell Hospital for Children

OTHER CONSTRUCTION $2 – $100 MILLION

Superior Mechanical Benjamin Russell Hospital for Children

C.S. Beatty Construction Alabama Power SEGCO Stream Restoration & Slope Repair C.S. Beatty Construction Inc., a Birmingham based site development contractor, recently completed work for Alabama Power Company at the firm’s SEGCO site. The work included stabilizing a slope through the use of rock and restoring the slope to its original contour. C.S. Beatty Construction safely worked over 3,900 man hours on this project, stabilized over 130,000 cubic yards of material and placed over 3,700 tons of rip-rap on the nearly 16 acre site.

2129 Richard Arrington Jr. Blvd.

S. Birmingham, AL 35209 205-879-5788 csbeatty.com

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CM OTHER CONSTRUCTION UNDER $2 MILLION

OTHER SPECIALTY CONSTRUCTION OVER $1 MILLION

BL Harbert International, LLC

C.S. Beatty Construction

Auburn University of Montgomery – The Grove

International Paper Pine Hill Mill ASB Liner Replacement

The Grove project at Auburn University Montgomery is a small project with big results. The BL Harbert construction management team worked with AUM leadership and Infinity Architecture to revitalize and re-invent what was meant to be a wooded passageway between student housing and academic buildings. However, the path was mostly unused, as it was overgrown, poorly lit and was not ADA-compliant.

Post Office Box 531390 Birmingham, Alabama 35253 (205) 802-2800 blharbert.com

OTHER SPECIALTY CONSTRUCTION UNDER $1 MILLION

C.S. Beatty Construction Inc., recently completed a liner replacement project at International Paper Company’s Pine Hill, Alabama mill. The work included installing a concrete block revetment mat, the majority of which is under water at the mill’s aerated stabilization basin. C.S. Beatty Construction safely worked over 6,000 man hours on this project, installed 133,000 square feet of 6-inch thick concrete mat and filled the concrete mat with over 1,700 cubic yards of grout.

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CM RENOVATION $4 – $10 MILLION

Dunn Building Company Monarch Steel Roof Repair & Coating

BL Harbert International, LLC

RENOVATION UNDER $4 MILLION

Auburn University of Montgomery – Taylor Center

Brasfield & Gorrie Baker Donelson Law Firm

The $8.5 million Taylor Center renovation and rehabilitation project at Auburn University Montgomery is a six-phase project of the campus’s central administration building where everything from Financial Aid to Campus Police to the bookstore and cafeteria are located. The BL Harbert construction management team worked with AUM leadership and architect 2WR-Holmes to make this 55,000 square foot facility safe and efficient.

They kept the building open and operating through the project.

Post Office Box 531390 Birmingham, Alabama 35253 (205) 802-2800 blharbert.com

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SUPPLIER

Block USA Hoover High School Expansion

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AL CONSTRUCTION NEWS

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Contractor of the Year

BL Harbert International

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Sub-Contractor of the Year

Ivey Mechanical Co.

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2012 Merit Award Winners COMMERCIAL UNDER $5 MILLION

Brasfield & Gorrie

Stewart Perry

HEALTHCARE $25 – $100 MILLION

Homewood Fire Station #22

COMMERCIAL $10 - $25 MILLION

Brasfield & Gorrie

Brasfield & Gorrie

HEALTHCARE MEGA

Cardiovascular Associates Medical Office Building

ELECTRICAL COMMERCIAL UNDER $2 MILLION Bright Future Electric Southern Research Institute ERC Building

Our Lady of the Lake Livingston

ROBINS & MORTON Porter Regional Hospital

HISTORICAL RESTORATION/ RENOVATION UNDER $25 MILLION

EXTERIORS (MASONRY, PRECAST OR STONE)

Stewart Perry

Selective Masonry

INDUSTRIAL UNDER $5 MILLION

New Madison City High School

FEDERAL GOVERNMENT/ MILITARY $10 – $100 MILLION

Homewood Fire Station #22

Dunn Building Company Topre America Phase 4 Press

Caddell Construction

Foundations & Tunnels

Warrior in Transition Barracks

INSTITUTIONAL $5 – $10 MILLION

FEDERAL GOVERNMENT/ MILITARY MEGA

Brasfield & Gorrie

BL Harbert International

Dawson Memorial Baptist -Church Edgar M.

U.S. Embassy, Kyiv, Ukraine

Arendall Building- Youth Education Addition

BL Harbert International

RENOVATION UNDER $4 MILLION

U.S. Embassy, Monrovia, Liberia

HEALTHCARE UNDER $10 MILLION

Stewart Perry Earth Fare

M.J. Harris

SUPPLIER

Sparks Regional Medical Center Surgical Suite

Ready Mix USA

HEALTHCARE $10 – $25 MILLION Robins & Morton Fisher Titus Medical Center

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Choctaw General Hospital

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Huffman High School

Thanks to our Sponsors!

PLATINUM LEVEL SPONSORS

SILVER LEVEL SPONSORS

Burr & Forman LLP

Bresco

C.S. Beatty Construction

Bright Future Electric

Hoar Construction, LLC

Crosby Electric

McGriff Seibels & Williams

Ivey Mechanical Company

Robins & Morton

Masonry Arts

Selective Masonry

MJ Harris Construction Services Service Construction Supply

GOLD LEVEL SPONSORS Adkins & Kimbrough Mechanical, LLC American Pipe & Supply Brasfield & Gorrie Caddell Construction Dunn Companies Hardy Corporation Ready Mix USA/Block USA Rust Constructors Southern Carpet, Hardwood & Tile

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News & Notes

DEC/JAN 2013 AL CONSTRUCTION NEWS

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News & Notes

Health Care Reform is Here to Stay: What Now?

by JAY TURNER Bradley Arant Boult Cummings LLP

AFTER ATTEMPTS TO DEFEAT THE Affordable Care Act (“Obamacare”) failed at the Supreme Court. Opponents of the law were hoping that the November Presidential election would open up an avenue for repeal. However, with President Obama being reelected, and without Republicans winning a majority in the Senate, there appears to be no hope that Health Care Reform will be repealed.

Employers must now determine how the law will apply to them and what steps they will need to take to comply. Some of the law’s provisions are already in effect, but there are also provisions that are newly effective or coming soon that employers should be working on.

Summaries of Benefits and Coverage (“SBCs”) must be provided to participants and beneficiaries beginning with the first open en-

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rollment period that begins on or after September 23, 2012. For many employers, that means during the open enrollment period for 2013 benefits (held in October-December). The SBC is a new plan communication (outside of the summary plan descriptions already being provided to participants) that must meet extensive formatting requirements under Health Care Reform. Failure to provide the SBC could result in penalties of $100 per day per person or up to $1,000 for each willful failure.

Effective January 1, 2013, health flexible spending accounts (“FSAs”) are now limited to a maximum of $2,500. Previously, no limits applied to health FSAs, and an employer could write any limit into its plan document. By the end of 2014, employers must ensure that their health FSA plan documents incorporate no more than a $2,500 maximum account limit.

Jay has devoted his entire legal career to representing employers inemployee benefits matters. He has extensive experience counseling clients in the development of employee benefit programs, drafting plan documents, and representing employers before the Internal Revenue Service and Department of Labor.

He applies his technical expertise to bring practical solutions to his clients.

Jay has extensive experience in designing and drafting various employee benefit plans for private, nonprofit and governmental employers. He consults with plan sponsors, third party administrators and plan service providers to develop the most appropriate arrangement. When problems arise, Jay represents employers before the Internal Revenue Service and Department of Labor and also advises clients in self-correcting plan errors. Jay also regularly advises employers on COBRA and HIPAA matters and frequently consults with employers on group health and cafeteria plan matters.

Beginning in 2013, every group health plan will be required to pay an annual plan fee to fund the Patient-Centered Outcomes Research Institute. The fee will be paid by plan sponsors for self-insured plans and insurers for fully insured plans (employers should understand that they will either directly or indirectly end up paying this fee).

The fee is based on the average number of lives covered under the plan.

The Medicare Part D Federal income tax deduction provided to employers who maintain prescription drug plans for their Medicare Part D eligible retirees will be eliminated in 2013. Employers who have taken advantage of this deduction may want to evaluate the continued viability of their prescription drug plans. Additionally, effective in January, 2013, an additional 0.9% Medicare tax will be imposed on employees earning wages over $200,000 ($250,000 for joint filers).

Many of the changes that are part of Health Care Reform come into effect in 2014. State health insurance exchanges will be put into operation. Governor Bentley announced in November that Alabama would not form its

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own health insurance exchange. As a result, the Federal Government will be responsible for offering affordable health insurance to Alabamians. Additionally, Governor Bentley announced that Alabama would not participate in the expansion of Medicaid under Health Care Reform.

Likely of greatest impact to employers is the requirement for large employers to “play or pay.” That is, these employers will have to provide qualifying affordable health insurance to their employees or pay penalty taxes to the Federal Government. The penalties will be based on the employer’s number of full-time employees, and whether the employer doesn’t offer minimum essential coverage or if the employer offers minimum essential coverage but such coverage is unaffordable.

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during which at least one full-time employee receives subsidized coverage through a health insurance exchange, the employer must pay a penalty tax equal to the number of full-time employees (over the first 30 exempted employees) multiplied by $167. As an aside, if Governor Bentley had decided to approve the expansion of Medicaid in Alabama, the expansion would have dramatically increased the number of Alabamians eligible for Medicaid, potentially removing from the play or pay penalty equation a large number of employees because these employees would not have been eligible for subsidized coverage through a health insurance exchange.

For employers who offer minimum essential coverage but, because the coverage is too expensive at least one employee is still receiving subsidized coverage through a health insurance exchange. The employer

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News & Notes must pay a penalty equal to the lesser of the penalty for not offering any coverage (discussed in the previous paragraph) or $250 multiplied by the number of employees receiving coverage through a health insurance exchange. Coverage is considered unaffordable if the employee’s share of the premium (for self-only coverage) exceeds 9.5% of the employee’s W-2 income.

Calculating the number of full-time employees for purposes of determining the amount of the penalty that might apply is complicated. There are special rules that apply for converting part-time employees to full-time equivalents, and the controlledgroup rules (that cause persons employed by related employers to be included in the full-time employee count) also apply.

In 2014, preexisting condition exclusions are no longer permitted and waiting periods for coverage are limited to a maximum of 90 days.

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ABC leads Amendment 2 AMENDMENT 2 HAS PASSED AND will permit the reissuing of bonds up to $130 million dollars. The passing of this amendment was made in an effort for economic improvement for the state of Alabama.

Secretary of Commerce, Greg Canfield, was not shy about his desire to ensure Amendment 2 passed on this year’s election day. However, as most of the construction industry noticed, ABC did not take Amendment 2 lightly either.

“Ensuring Amendment Two passed is exare a team player,” said Hightower. “Sure actly why ABC exists. When economic our members want to build these projects development opportunities exist it is our when they come to Alabama, but we must business to step up and be an advocate do our part to help Secretary Canfield and for our members,” commented ABC his team win when recruiting. I can cerPresident Jay Reed. tainly, without a doubt say, ABC did our In short Amendment Two gave the part on this effort.”

Alabama Department of Commerce auShortly after the passage of the Amendthority to refinance “I know I have said several times that current debt in order to take advantage of Montgomery sees ABC as the voice of lower interest rates. the industry.”

This refinance saved the Department dollars that can now be ment ABC of Alabama received a letter used to recruit businesses.” Alabama is from Governor Bentley and a conference now an international player in industry call with its Board of Directors thanking recruitment and as a State, needs to fill them for their support. Alabama ConstrucSecretary Canfield’s toolbox with every tion News also felt it important to share tool possible. The passage of Amendment the letter on the following page from Gov2 will do just that. ernor Bentley. In closing, Reed added that Tim Hightower, ABC Board Member addseveral Board members played a key role ed, “I know I have said several times that in arranging a fundraiser for the event, and Montgomery sees ABC as the voice of the for that he was grateful. industry. However, our allotment of funds, staff time and resources goes to show we

News & Notes

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Alabama Electrical Contractors Board Takes Shape GOVERNOR BENTLEY RECENTLY APPOINTED the following individuals to the Electrical Contractors Board: • Mr. Albert Hensley,Chair • Mr. Chuck Turner • Mr. Joseph Bruce Taylor • Mr. Terry Wallace • Mr. Carmon Colvin, Vice Chair • Mr. Donald R. Cook • Mr. Ronald D. Weaver, Jr. • Mr. Robert Lamborne • Mr. Jesse P. Stutts, III ABC applauded these appointments, which included members from ABC. “Our membership base consists of a large number of electrical contractors. We work closely with this licensing board on issues affecting this portion of our membership, said ABC President Jay Reed. “Keith Warren and his staff along with the Board are extremely beneficial to our industry and we value our relationship with them.”

Electrical Contractors Board Chair Albert Hensley

The AECB website allows access to license records and provides applications for a license. For more information on the Alabama Electrical Contractors Board:

We Recommend: www.aecb.state.al.us

IT’S A WASTE TO WASTE MONEY ON WASTE. No business can afford to waste money on waste. Sadly, many businesses don’t know what they’re actually paying, or who is even in charge of it. Someone signed a contract long ago, the bills keep coming and nobody worries about it. But most companies’ contracts have built in rate increases. So you may be paying a lot more than you should.

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ABC Elects PAC Trustees THE MOST RECENT ELECTED PAC TRUSTEES INCLUDE: • Geoff Golden (Golden Construction) • Tim Hightower (Southern Carpet Hardwood & Tile) • Robin Savage (Robins & Mortin) Jay Reed, president ABC, also serves as a PAC trustee. This group takes into consideration all requests from candidates seeking financial support of the association.

The ABC of AL Board of Directors recently elected new PAC trustees for 2013. Those individuals include: Geoff Golden (Golden Construction,) Tim Hightower (Southern Carpet, Hardwood and Tile,) and Robin Savage (Robins & Morton.)

This group takes into consideration all requests from candidates seeking financial support of the association. “As our presence in Montgomery has grown so has the request we receive for contributions to the campaign of candidates seeking office.

As trustees, our task is to ensure the candidates understand the issues in our industry,” said Tim Hightower who is the PAC Trustee Chairman.

“We ensure the candidate has knowledge of merit shop construction and understands our philosophy. I recently challenged someone that made the comment our PAC only supports Republicans. I am proud that our record shows us issues driven and not solely party driven.”

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News & Notes

Bart Wilder is ABC Safety Committee’s New Chair

by HUGH J. RUSHING

ALL THOUGH HE’S NOT QUITE READY to announce his Thirteen in Thirteen Goals program for 2013 just yet, Bart Wilder, incoming chair of the ABC Safety Committee for the next two years, is excited about the prospects in the coming months.

“We want to continue the progress of 2012 into and beyond 2013,” Wilder says. As a safety executive with Hoar Construction, Wilder wants to urge higher attendance levels for Safety Committee meetings, focus on developing long-term relationships between and among members of the committee and make certain that ABC’s safety programs are extended to Latino construction workers in the state.

ABC’s nationally recognized Safety Committee offers safety training classes, publications and videos to aid contractors in meeting

safety goals. In addition, the Safety Committee oversees the areas needed by commercial contractors and promotes the culture of safety thoughout the construction industry.

Expert observers believe the re-election of Barack Obama may result in OSHA moving forward with long-delayed silica regulations as well as other programs whose implementation was slowed ahead of the 2012 elections. Despite that, Wilder says he’s excited to work with new area director for North Alabama, Ramona Morris. “We’ve had a couple of good meetings, and I think we will be successful in continuing our productive partnership with them and reaching out in a cooperative fashion.”

ABC’s recognition of firms with outstanding safety and performance workers will continue in 2013 with the organization’s Safe Day luncheon and awards ceremony. Wilder says that ABC will be supportive of the region IV meeting of the American Society of Safety Engineers which has set its 75th anniversary meeting at the Birmingham Jefferson Civic Center in April. Safety professionals from a number of Southern states will attend that meeting.

ABC’s emphasis on workforce development in 2013 even carries over onto the safety committee’s activities. “One of the things we always say is, ‘Imagine what you would say or do if your own son or daughter was working on an unsafe job site?’ You would stop the work until the potential for harm was corrected. In working with young people and with those that are new to a job site or in a new area of emphasis, we must take the same care to insure

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their education and safety as we would for our own children,” Wilder commented.

One of the options on a job site, and often one of the best ones Wilder says, is summed up in a single word: Stop. “When you stop, you can be deliberate. You can make sure you understand the risks, mitigate the hazards, educate and mentor those not as familiar with a process and instill a culture of safety which means that we all go home safe and sound to our families tonight.”

In late November, OSHA in Washington, announced a new Whistleblower Protection Program director with the appointment of Beth Slavet. There are more than twenty statutes intended to pro-

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tect employees who report violations of various workplace safety provisions. A month before, OSHA established two one-year pilot programs in regions V and IX. The program will allow 15 alternative dispute resolutions for complaints filed under whistleblower provisions, which promise to remove (whistleblower complaints) from federal courts. In October OSHA settled a whistleblower case in Tennessee with the Mark Alvis Inc. trucking company. The firm reinstated a driver with a lump sum payment of $30,000. The driver was fired in 2010 when he refused to extend his driving hours beyond the statutory limit to make an additional delivery for the firm.

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Official Notice To Alabama Contractors BP has reached a settlement with the court system that involves construction related companies NORTH and SOUTH of I-10 (Zones D & C). The details of the settlement are clearly defined and will certainly impact contractors licensed in Alabama.

ABC has made arrangements for Bainbridge Mims Rogers & Smith, LLP and Cunningham Bounds, LLC law firms to assist our members and the construction industry with the logistics surrounding the settlement. The map below outlines the areas included in the settlement.

For details and to determine if you qualify, contact: Nick Gaede, Jr. (205) 868-4108

“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.�

Steve Olen (251) 471-6191

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

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