Alabama Construction News

CIRT 2nd Quarter Sentiment Report

New Programs for Professional Development

Safety Focus Fleet Management

ALABAMA

CONSTRUCTION N EWS

Safest in the Industry PAGE 35

Lean Construction

PAGE 30

Senator Slade Blackwell PAGE 28

JUN/JUL 2012

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MORE JOBS. MORE TOOLS. MORE HELP.

MORE OF WHY YOU JOINED THE ABC NORTH ALABAMA CHAPTER

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

FEATURES

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SenatorSlade Blackwell Alabama Senator rates the legislature’s performance in its 2012 session.

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Lean Construction Could lean construction restore the construction industry to profitability?

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Safest in the Industry Take a look at Alabama’s leaders in construction safety

photograph by BRIAN AUTHEMENT

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AL CONSTRUCTION NEWS

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DEPARTMENTS 04 From the President

BUILDING ALABAMA 08 Updates & Reports

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Compelling updates and reports that are newsworthy for the construction industry.

16 Outlook & Trends

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

18 Liability Concerns for Out-of-state Projects

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Bidding out of state projects can be problematic. Key things to watch for when seeking work away.

26 Accident Analysis

Amid Positive Indicators that the Great Recession of the 21st Century May Be Slowly Ending, Where will Alabama’s Future Economic Growth Come From? Alabama Economic Recruiters and Economists Talk About What to Expect Going Forward.

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ABC NEWS & NOTES 48 ABC Unveils 3 New Programs

ABC offers three programs that can save ABC members money, provide training for potential leaders and mentoring for partner firms.

52 Faces Going Places - Jim Rein

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Alabama Construction News Cornerstone Award winner for 2012 is Jim Rein of B.L. Harbert International, LLC, a highly respected construction professional with worldwide connections.

What we know.

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

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

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

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

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

That’s what we know.

AMONG THE NATION’S BEST LAWYERS

babc.com

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ALABAMA

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DISTRICT OF COLUMBIA

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MISSISSIPPI

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NORTH CAROLINA

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TENNESSEE

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

From the President ALABAMA

CONSTRUCTION N EWS

Publisher

Jay Reed Associate Publisher/ Managing Editor

Todd Walker Publishing Coordinator/Circulation

Charles Hall Accounting

Jenny Wilson Advertising Sales

George Pierce Editor

Hugh J. Rushing Print Production

Print Resources Art Director

Brian Authement Jay Reed President, ABC of Alabama

Copy Editor

Megan Beavers ABC of Alabama and Alabama Construction News are honored to present the 2012 Safest in the Industry awards. Featured also in this edition is our Safety Director of the Year, 2012 Eagle recipients and our Safety Innovator of the Year. These companies consistently live a culture of safety and from CEO down embrace every measure possible to ensure jobsite safety.

Our association has also embraced the safety culture. We now boast a 30 plus member safety committee that meets monthly to ensure every company desiring to protect their employees has the tools and resources to do so. Recently, joining us on this committee are also representatives from OSHA and MSHA. The association is better because of the commitment this committee has to life safety and that is certainly worthy of recognition given in this issue.

We also feature a new series of professional development classes upcoming at ABC of Alabama. Please take a look at: Future Leaders in Construction (FLIC), ABC Lean Construction Network, and Mentoring Advancement Program (MAP).

These programs are a direct result from listening to our members and providing you with the tools needed to compete in today’s economy.

Lastly, we highlight the Legislative Goals for 2013 that the ABC Board of Directors have recently adopted. These issues surfaced from much discussion on how our association can spur economic development, increase profit, and decrease construction cost.

These three issues are on the mind of every contractor in the State of Alabama and we thought you should see we are concerned as well.

Jay Reed,

Publisher/ President - Associated Builders and Contractors

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

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

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

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

Illustration by Name Here

photograph by NAMEGOES HERE

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BUILDING

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By Alabama Firms

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ID Mobile Container Terminal

Port Terminal Added to Alabama’s Engineering Hall of Fame

T

HE $300 MILLION APM CONtainer Terminals Mobile, which positioned the state to compete with ports around the world, was recently inducted into the 2012 Alabama Engineering Hall of Fame. Jerald Kichler, Vice President Engineering of Alabama State Port Authority, accepted the award.

Opened in September 2008 and located 30 miles from the Gulf of Mexico, the stateof-the-art deep water marine terminal offers containerized cargo shippers a cost effective alternative to accessing global networks.

This covers all possible trade routes to and from the port. It was the site’s largest capital undertaking since its original construction in 1928.

The world class project was a partnership between the Alabama State Port Authority

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and APM Terminals, an independent division of the A.P. Moller-Maersk Group.

Multiple engineering and technical achievements combined to make the project a Hall of Fame candidate. As prime consultant, ABC member and a Mobile-based company, Volkert, Inc. led an inter-disciplinary team in the collection, evaluation and documentation of environmental, social and economic information. Completion of the project required the teamwork of numerous engineering and construction firms to coordinate designs and overlapping phases of construction. These included environmental studies and surveys, mitigation, land reclamation, and dock and terminal construction, according to a release

by Volkert.

The APM Terminals Mobile will ultimate-

ly combine the container terminal with a container handling intermodal yard and a logistics park. The intermodal yard is presently under development, and work on the logistics park could begin in the near future.

The Port of Mobile is the ninth largest port in the nation in terms of tonnage, according to a report released by the U.S. Army Corps of Engineers’ Waterborne Statistics Center.

Other Volkert projects in the Hall of Fame include Interstate 10 Twin Bridges across Mobile Bay, Cable-Stayed Cochrane Africatown USA Bridge, the McDuffie Coal Terminal and the Pavement Test Track Facility in Opelika, Alabama.

photography by VOLKERT ENGINEERING

Jason Phelps, Asst Dir of Alabama Construction Recruitment Institute and (right), Taylor Austin, Scholarship recipient

Sheffield High Youth Recipient of Go Build Alabama Scholarship ABC OF ALABAMA’S GO BUILD ALABAMA, AN INITIATIVE of the Alabama Construction Recruitment Institute has presented Taylor Austin with its $2,500 scholarship.

Austin was selected as the Go Build Alabama Student of the Month for September. The program, which honors one high school junior or senior each month, aims to encourage and reward students who plan to pursue careers in the construction industry. Recipients must demonstrate interest in construction careers and be enrolled in or have been enrolled in technical courses related to the skilled labor industry. Each student is then eligible for the scholarship funds.

ACRI selected Austin based on school involvement, recommendations and commitment to a construction career.

Austin is a senior at Sheffield High School in Sheffield, Alabama and is in his second year of welding classes at the Muscle Shoals Center for Technology. He is the president of his local chapter of SkillsUSA and the son of Bill and Carol Austin. Upon graduation, Austin plans to attend a technical school or complete an apprenticeship in welding.

Austin has OSHA-10 certification, competes in local and state welding competitions and has his welding certification in the Workforce Ready System. He has also completed 15 hours of college credit in welding.

“Our goal is to provide students like Taylor with the help they need to further their training, and we are proud to award this scholarship to him. Taylor has truly shown a passion for a career in construction, and we believe he has a bright future ahead in the industry,” said ACRI executive director, Tim Alford.

For more updates and information on this program, visit www.gobuildalabama.com.

Bobby Toups (left), ATC Associates Inc. CEO & President Scott Vinsant, ATC Associates Inc. Birmingham Branch Manager

ATC Named Top Design Firm ATC ASSOCIATES INC., HEADQUARTERED IN LAFAYETTE, Louisiana with offices in Birmingham and 64 other locations was recently named to Engineering News Record’s list of “Top 500 Design Firms.” ATC ranked 62nd overall for 2012, rising six places from 68 in 2011. ATC has been on the list for the past two decades. ATC also climbed in rankings to place 37th on the “Top 100 Pure Designers” and 20th on the “Top 20 Hazardous Waste Firms.”

ATC recently merged with Cardno, a professional services firm headquartered in Brisbane, Australia. ATC is part of the Cardno family of companies with more than 6,400 employees working on projects in 85 countries.

“Our motivation to seek partnership with international firm Cardno was three-fold,” said ATC CEO Bobby Toups, “First to provide our clients with a wider range of services and locations; second to provide our talented staff with additional opportunities for career development; and third to accelerate the growth of ATC across the US and overseas.”

ATC has worked behind the scenes for hundreds of Fortune 500 companies and was on the scene within hours of several national disasters. ATC has worked with the WTC recovery and redevelopment efforts and helped with environmental testing in the aftermath of Hurricanes Katrina and Rita. They have also played a part in providing geotechnical services and construction materials.

Throughout all of this ATC has served as a one-stop resource for leaders in petroleum, real estate, retail, manufacturing, financial services, insurance, construction, telecommunications, education, government and hospitality.

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ONE OF THE founders of ABC’s Alabama chapter, Ted C. Kennedy died May 8 at the age of 82. Kennedy was chair of ABC’s hiring committee in 1974, which employed Jeff Masters as president and kicked off the formation of ABC-Alabama. Just two years prior to that, Kennedy had formed BE&K Inc., along with veterans of Rust International, Peter Bolvig and William F. Edmonds.

Kennedy donated office space to ABCAlabama in its early years and served as chairman of the Alabama chapter in 1976.

He was also national president of ABC in

1979. He was Alabama Construction News’ Cornerstone Award winner in 1995.

ABC president Jay Reed said, “Over my 16 years here at ABC, one name continually surfaces that always gave back to the industry, to ABC and to the community. That name was Ted Kennedy. The construction community is better today internationally because of Mr. Kennedy. He was truly a Cornerstone of our industry and we mourn the loss.”

Reed said that Kennedy will be remembered for many active leadership roles that he took on nationally and locally. One began to take shape while serving as National Chairman of ABC. He promoted education and laid the groundwork for the modernization of craft worker education through what he named the “Wheels of Learning” training program. The Wheels of Learning became the foundation for the National Center for Construction Education and Research (NCCER). The curriculum and certification standardization is now used in all 50 states and foreign countries. The

Construction Education Foundation of Alabama (CEFA) uses this standardization and it has been adopted by the Alabama Board of Education and our two year college system. This program cleared the way for craft employees to carry their credentials and training from location to location thus ensuring a new smooth transition for training and credentialing.

Kennedy was also a trustee of the Merit Shop Foundation. He served as chairman of the Construction Industry Institute at the University of Texas at Austin and as president of the National Academy of Construction. In addition Kennedy served for 14 years on the Contractor’s Advisory Committee of The Business Roundtable and was an active member of the Construction Users Roundtable. In addition to receiving Duke University’s Distinguished Alumnus Award, the Theodore C. Kennedy Professorship was established in 2005 to support engineering faculty in Duke’s Pratt School of Engineering.

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BL HARBERT photograph by NAMEGOES HERE

Illustration by Name Here

ABC Remembers Ted C. Kennedy

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ACE Board Member, Nick Dill of Robins & Morton celebrates the evening with Mark and Martha Ballard. They were both recipients of the Robins & Morton Scholarship and will attend Auburn University in the fall

ACE Mentoring Program Celebrates With Banquet and Awards AN EXCITING OPPORTUNITY IS EMERGING IN THE construction industry, the ACE Mentor Program of Alabama. This program has the potential to help stabilize and grow the future of construction. It also encourages educational advancement for students.

ACE is a program that was designed specifically for high school students. This year ACE held fifteen two-hour sessions, hosting around thirty students from various high schools in the Birmingham area. Professionals from respective industries conducted each meeting held after school. Mentors, assigned through the program, also provided support for the students. At the end of the school year, ACE awarded $14,000 in scholarships to seven students.

Laurel Stiff is the program coordinator and has been working to grow the program and encourage students. “I am so thrilled to be a part of the ACE Program. It is really exciting to watch these students develop clear career goals,” says Stiff. “And the fact that ACE is able to award scholarships to help make those goals be realized is the best part.”

ACE held its annual end-of-the-year banquet on May 10th. The event was held at Alabama Power’s corporate headquarters in Birmingham. Robins & Morton served as the presenting sponsor for

photograph by NICK RAINES PHOTOGRAPHY

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the event, and Brasfield & Gorrie and MBA Structural Engineers were platinum sponsors. The Alabama chapter of Associated Builders & Contractors, Birmingham Chapter of National Organization of Minority Architects, and Society of Marketing Professional Services were silver sponsors. 150 guests comprised of ACE students, their families, mentors, and sponsors filled the auditorium.

The evening was filled with activity! During dinner, students presented the projects they worked on throughout the school year.

Each of the five groups designed a museum, riverfront park, or unique parking deck which they submitted to the national CIRT (Construction Industries Roundtable) competition in April.

Dr. Shelly Stewart of o2ideas was the keynote speaker. He spoke on the importance of education and perseverance through tough times. Dr. Stewart’s dynamic personality and encouraging message were truly inspirational to the students preparing for

life after high school.

After Dr. Stewart’s speech, seven seniors were awarded scholarships totaling $14,000.00. Each student who received a scholarship is pursuing a degree in an ACE related field. Students who received scholarships will attend UAB, University of Alabama, Auburn University, Tuskegee University, or Syracuse University in the fall.

The mission of ACE is, “engage, excite and enlighten high school students to pursue careers in architecture, engineering and construction through mentoring and to support their continued advancement in the industry.” There are over two hundred ACE affiliates across the country, and each affiliate is independently managed.

To learn more about becoming involved in ACE of Alabama, please contact Laurel Stiff at 205.482.1371, or acementoralabama@ gmail.com.

We Recommend: acementor.org/678

Our Name Says It All...

Birmingham Location:

3420 Richard Arrington Jr. Blvd. N. Birmingham, AL 35234

Florida Location:

630 Kissimmee Avenue Ocoee, FL 34761

(205) 326-1409

NLRB’s Ambush Rule Overturned…

At Least for the Present THE NATIONAL LABOR RELATIONS Board’s (NLRB) “ambush rule” that would shorten the time an employer had to defend against efforts by its workforce to unionize from 42 to 10 days was overturned by a U.S. District Court Judge in Washington, May 14.

Judge James Boasberg ruled that since only two members of the five board members of the NLRB voted for the union-friendly measure, the lack of a quorum made the vote invalid.

One study has shown that when unions

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are able to force elections within 15 days of their demand for a vote, they are successful 87 percent of the time. When employers are given five or six weeks to present their side, union succeed less than 60 percent of the time.

Three of the five current members of the NLRB were appointed by President Obama using a recess appointment in order to bypass Senate confirmation. Those appointments are under challenge by the U.S. Chamber of Commerce and others.

The AFL-CIO’s blog featured a comment by its general counsel, Lynn Rhinehart, “The judge’s ruling, while in our view incorrect, is solely based on technical issues that speak to the procedure of the board and not the rule itself.”

“This is a great victory for the merit shop construction industry, and employers and employees across the country,” said ABC Vice President of Federal Affairs Geoffrey Burr. “The new procedures, which went into effect April 30, made it more difficult

for employees to make a fully informed decision concerning union representation.”

Washington observers however expect that once the validity of the NLRB’s latest appointees is dealt with, that the NLRB will return to the rule and pass it once again.

Hoar /Paladin Group set Work at Fort Campbell HOAR CONSTRUCTION, LLC AND Paladin Construction Group, Inc. have been awarded a contract to construct a 64,000 square foot Physical Fitness Facility with a 5,900 square foot, 3-lane indoor jogging track at Ft. Campbell, Kentucky. Hoar Construction and Paladin Construction have

a mentor/protégé joint venture agreement and have teamed with Gresham Smith & Partners for design/build facility.

The new physical fitness facility will accommodate cardio and circuit training areas. It will contain a free weight area, group exercise rooms, a fitness assessment and stretching area, a gymnasium, racquetball courts and men’s and women’s locker rooms and sauna areas. In addition, the project includes construction of a multi-purpose athletic field, 2 softball fields, an indoor climbing wall and surface parking for 140 vehicles.Hoar Construction and Paladin Construction have teamed on a previous project for the Corps of Engineers: a hangar repair and restoration project on Carnes Field at Ft. Rucker. Hoar is also currently working with Christman and Associates on the renovations to the Robert Smith Vance Federal Building and Courthouse in downtown Birmingham.

2011 ABC Alabama Subcontractor of the Year 2011 ABC Alabama Excellence in Construction Awards First Place - Birmingham Zoo Trails of Africa First Place - Georgia Power Plant Scherer First Place - Auburn University Multi-Sport Practice Facility

Heavy Civil/Sitework Contractors • COMMERCIAL • INDUSTRIAL • MINING • ENVIRONMENTAL

Illustration by Name Here

2129 Richard Arrington Jr. Blvd. S Birmingham, AL 35209 Telephone: (205) 879‐5788 Fax: (205) 879‐8469 email: info@csbeatty.com

photograph by NAMEGOES HERE

www.csbeattyconstruction.com

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Hoar Funds Grant for Tornado Recovery Volunteers THE HOAR CONSTRUCTION FUND OF THE COMMUNITY Foundation is touching the lives of tornado survivors in a special way that speaks to the expertise of Hoar Construction, headquartered in Birmingham. Thanks to almost $55,000 from the Hoar Construction Fund, construction coordinators and estimators can continue and expand their efforts in Calhoun, Choctaw, Cullman, Franklin and Marion counties, all among the hardest-hit in April 2011 tornadoes.

Workers supported by these grants will provide coordination for volunteers, estimates needed for work to begin and inspection of repairs once complete. According to Long-Term Recovery Committees in these counties, their involvement is vital in helping families return to a secure, well-built home and in stretching recovery funds to help as many families as possible.

“Using the Hoar Construction Fund to support construction coordinators is a great opportunity for us to support a need that we understand so well from our own experience,” said Doug Eckert, Executive Vice President of Hoar Construction. “The supervision of a construction coordinator can make everything go more smoothly and amplify the efforts of volunteer and professional crews. With these grants, we know we are truly helping people get back in their homes.” The Hoar Construction Fund was established as an Advised Fund at the Community Foundation.

Bentley’s Ban on Texting

“A driver is twenty-three times more likely to crash and cause death or major injuries while texting.”

ABC APPLAUDS GOVERNOR BENTLEY on his recent ban on texting while operating a motor vehicle. Bentley signed House bill two of the 2012 regular session as a move in the right direction toward a safer roadway in Alabama.

According to Senator Waggoner, a driver is twenty-three times more likely to crash and cause death or major injuries while texting. He also included that it has been determined that texting drivers are more dangerous than drivers under the influence of alcohol. Bentley signed the bill in recognition of these dangers.

The new bill was sponsored by Representative Jim McClendon and was passed by the Alabama Legislature. The bill now prohibits a person from using a wireless telecommunication device to write, send or read a text-based communication while operating a motor vehicle.

The Board appreciates the hard working licensed contractors who are determined to deliver quality services to Alabama’s consumers.

The Alabama Board of Heating, Air Conditioning & Refrigeration Contractors supports ABC and their current legislation.

These contractors spend a lot of time and money to meet the requirements necessary to maintain their certifications while unscrupulous contractors attempt to take business from the qualified contractor by lowering prices and doing substandard work.

The Board often receives calls from certified contractors who are discouraged by the continued presence of uncertified contractors working without obtaining the proper certification. Our investigators attempt to find as many of these uncertified contractors as possible, however, when you see or know of a possible uncertified contractor working in your area, you should notify the Board in order for our investigators to check on the validity of these contractors.

The Board takes whatever action necessary against uncertified contractors, including issuing cease and desist orders, levying fines and obtaining warrants for their arrest, in an effort to stop such illegal activity.

We have been successful in having several supply houses post bulletins warning illegal contractors of the consequences of working without a license.

The Board supports our certified contractors and makes every effort to protect the reputation of those contractors who strive to follow the rules and regulation of the heating, air conditioning and commercial refrigeration industry.

phone (334) 241-0840 fax (334) 265-0570 www.hvac.alabama.gov

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Illustration by Name Here

A HISTORY OF MOVING ALABAMA FORWARD.

photograph by NAMEGOES HERE

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Ibh eugueri ustrud magnim ipis aut la aute dolobor iriusci te dolendre dolore tat wisit, suscin utat. Diam in exer suscipis acing ex exer sumsan volortisisi.

Non erostis nullan ulputem vel eliquat lamet adigna feugiam zzriure dunt lutat ulputpat nonsectet, quat utpat adionse mod tetue et alit am, quat, conse vel dolore venis nullam nos amet, sum zzrilisl dolum duis aci ex enismodolore te dolor ilit wisi.

Luptat, velessed modit ute magnibh eu feugiam conulputat lumsand ipismod oloreet vel incincil ing erit, quat loreetu mmolent velent at vullutem zzriuscip euguer sum quip ex et doluptate venit adit prat, quamet vel ulla corero odit laor amcon ullaor in eu facilluptat lorero odolummy nullan er il iliquat non ea facipit autatet iriure magna

APR/MAY 2012

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ALABAMA OUTLOOK & TRENDS

ABC of Alabama presents

Industry Outlook & Trends • FOR ALABAMA •

CIRT Second Quarter 2012 Sentiment Report The CIRT Sentiment remained constant, only dropping 0.1 points this quarter. The CIRT Design Index reading gained 1.3 points, which is it’s highest point since this portion of the Index quarter first started. Although the private sector has been showing some signs of awakening from hibernation, the public sector is retreating to trim budgets and staff. There have been definite signs of an improving economy. However, full recovery always seems a little beyond our grasp.

There are many global economic issues that we are facing this year as well. One panelist commented that the presidential election of 2012 was one of the biggest, potentially negative factors that could affect their domestic market strategies. Another issue lies with the increasing inflation in reaction to U.S. monetary and/

or fical policy, displacement of U.S. dollar as the world currency, and sustained high prices for oil products. However, the three most important issues are: reform/reduce overall cost impact of entitlement programs, repair failing infrastructure and reduce federal regualtory “red tape.”

Some important areas that CIRT looked at are covered in the CIRT Design Index Components. This included information on consulting planning, showing that the planning slipped 0.6 to 71.1, an insignificant change that indicates the expectation of growth.

Pre-design work, commercial, residential and cost of materials all dropped a little as well. The cost of labor dropped 7.1 points this quarter. However, productivity edged higher to 56.7 this quarter remaining one of the bright spots for competiveness in a difficult market.

Despite some weak areas in the Index components, panelist’s construction business improved 1.3 points to a solid 63.8 this quarter. Commercial construction is still struggling to return to a growth pattern.

CIRT Sentiment Index Score

70 65 60 55 50 45 40 35 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 09 09 09 09 10 10 10 10 11 11 11 11 12 12 With Design Index 16

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ALABAMA OUTLOOK & TRENDS

Construction Economic Update Nonresidential construction spending continues to slide, falling 0.7 percent in April, according to the June 1 report by the U.S. Census Bureau. Spending in April stood at $558.33 billion on a seasonally adjusted annualized basis, but is up 7.1 percent from April 2011.

Private nonresidential construction spending fell 0.2 percent in April, but is up 17.4 percent compared to one year ago.

Public nonresidential construction is down 1.2 percent for the month, and is down 2.3 percent from the same time last year.

In contrast, residential construction

spending rose 2.6 percent in April and is up 6.2 percent compared to the same time last year.

Overall, total construction spending – which includes both nonresidential and residential – is up 0.3 percent for April and up 6.8 percent from one year ago.

Unemployment rates for the construction industry has dipped to 14.2 percent in June.

“The outlook for the nonresidential construction sector remains decidedly negative, with prospects for another near-term U.S. recession climbing materially in recent

600

months,” says ABC Chief Economist Anirban Basu.

The nation’s construction industry lost 28,000 jobs in May, with the unemployment rate falling to 14.2 percent, according to the June 1 employment report by the U.S. Labor Department. That is down from 14.5 percent in April and down from 16.3 percent in May 2011.

A substantial share of job loss was in the heavy and civil engineering segment, which lost 11,200 jobs in just one month wiping out gains made over the past year. Heavy and civil engineering is down 1,000 jobs compared to one year ago.

Overall, the nation added 69,000 jobs in May, far short of the 150,000 jobs expected. Private industries added 82,000 jobs, while the public sector lost 13,000 jobs. Year-over-year, the nation has added 1,782,000 jobs or 1.4 percent to job totals.

The nation’s unemployment rate ticked up to 8.2 percent in May from April’s 8.1 percent level.

550

We Recommend: www.cirt.org

Total Nonresidential Construction Spending April 2009 - April 2012 Source: U.S. Department of Commerce

Value: SAAR, $ billions

750 700 650

OCT-11 DEC-11 FEB-12 APR-12

JUN-11 AUG-11

OCT-10 DEC-10 FEB-11 APR-11

JUN-10 AUG-10

OCT-09 DEC-09 FEB-10 APR-10

APR-09 JUN-09 AUG-09

500

CURRENT CIRT SUMMARY UP

Construction Employment Growth: Residential v. Nonresidential May 2002 - May 2012 Source: Bureau of Labor Statistics

1100

Employment (thousands)

•

HIGHER

Productivity

•

1000 900

Overall economy where we do business Our construction business • Our expected backlog •

Residential Nonresidential

DOWN

Overall economy Residential building market where we do business • Nonresidential building construction market where we do business •

•

800 700 600

HIGHER

Cost of construction Cost of labor

500

• •

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 JUL/JUL 2012

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The following are examples of some of these areas of exposure. It is not possible to give a summary of the laws of every state in this article, but these are a sample of some of the relevant and important laws that differ by jurisdiction.

Construction Defect Under Alabama law, insurers are not normally required to provide coverage for allegations of negligent work under a general liability policy. Coverage is generally allowed where that negligent work does damage to another part of the property. It is this damage to other parts of a project that is considered an occurrence. Other state laws differ greatly as to what resulting damage may be covered and how coverage is triggered. Construction defect claims can be lengthy, burdensome and costly. And a contractor needs to ensure he has the appropriate coverage in place to protect himself from them. Just because something may be covered in Alabama does not mean that it will be covered elsewhere.

Indemnity/Anti-Indemnity

Liability Concerns for Out-of-State Projects

By Joe Duncan and Jeremy Gaddy–Huie, Fernambucq & Stewart

O

NE OF THE CONSEQUENCES of the economic downturn is that contractors often look outside of their home states to bid projects. It is not uncommon for a client to say that there are four times as many contractors bidding a project than there were in years past, and often, those companies are from other jurisdictions. When bidding projects in other states, contractors need to

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take the time to familiarize themselves with the liability and construction defect laws in those venues.

Differences in state laws can create exposure and liability that a contractor may not be accustomed to when considering risk and margins. What can complicate these issues further is that the contractor may not have insurance coverage in place to respond to the risk or liability due to the insurance laws in different states.

Alabama allows a general contractor to require a subcontractor to indemnify the general for the general’s own negligence.

In some states (i.e., Tennessee) this is forbidden by public policy or statute. A general contractor needs to be aware that it will not be allowed to pass claims off to a subcontractor unless those claims relate almost solely to the subcontractor’s own negligence.

“When bidding projects in other states, contractors need to take the time to familiarize themselves with the liability and construction defect laws in those venues.”

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ALABAMA PROJECTS

Statute of Repose A statute of repose provides the length of time that a contractor can be sued for problems with the work or injuries arising out of the project following its completion.

In 2011, the Alabama Legislature reduced the state’s statute of repose for contractors from 13 years to 7 years. In some states, depending upon the nature of the project, this statute may be as little as 4 years (i.e., Tennessee), or as long as 10 years (i.e., Florida).

Worker’s Compensation Worker’s compensation laws can differ greatly from state to state. Alabama provides that a worker’s compensation claim is the exclusive and only remedy by an employee against an employer. The employee,

however, is allowed to sue other contractors on the jobsite if they contribute to an injury. This is often carried out by arguing that a general contractor has a duty to provide a safe workplace through statutory provisions, OSHA or common law. Other states, such as Oklahoma, however, allow vertical immunity for claims as long as the employee is in the contractual chain. In other words, a general contractor may be able to claim immunity when a subcontractor’s employee is injured. When working in states with a vertical defense exposure is reduced, because a general would not be subject to claims by the subcontractor’s employees.

Right to Repair Some states, such as Georgia, have a right to repair statute when a construction defect

or a problem with the project is discovered.

These statutes are generally considered to be builder-friendly and allow the contractor to attempt to correct issues prior to litigation. Alabama has no such statute.

Joint & Several Liability versus Apportionment While some states, such as Mississippi, require juries to apportion the percentage of fault among defendants, Alabama and North Carolina follow joint and several liability. This means that Alabama juries return a monetary verdict without giving a percentage that each defendant has to pay.

If a situation occurs where one defendant is insolvent or uninsured, then the other defendants are responsible for paying the verdict. In other words, if a verdict is returned against a general contractor and

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BUILDING

ALABAMA PROJECTS

a subcontractor for $1,000,000, the general contractor may have to pay the entire amount if the subcontractor is insolvent.

Punitive Damages

Under Alabama law, punitive damages are generally covered by insurance, as long as they do not result from intentional acts. In other states, such as Minnesota, however, punitive damages will not be covered by insurNearly all construction contracts con- ance. This is important because it can result tain arbitration provisions that require any in a judgment that the contractor is liable for, claims between contractors, subcontractors even though it had general liability coverage. and owners to be arbitrated. However, one of the problems with arbitration is that some states, including Alabama, make it virtually impossible to have an appellate court review the decision of the arbitration board. Even While this list is certainly not exhaustive, where an arbitrator made an incorrect deci- it helps to demonstrate questions that a consion, it is highly unlikely that an appellate tractor needs to be prepared to ask when court in our state can review the decision. bidding projects in other states. From an

Arbitration

insurance and coverage standpoint, every company needs to discuss its efforts in other states with its insurance broker to make sure the proper endorsements are included for coverage for that work. From a margin and liability risk standpoint, the contractor needs to understand the business risks that it is exposed to from losses that may not have coverage, including construction defect claims or injuries resulting in punitive damages.

Conclusion

JOE DUNCAN IS A PARTNER WITH Huie, Fernambucq & Stewart, in Birmingham. His litigation practice includes general liability, coverage and liability issues associated with all phases of construction at both the trial and appellate court levels. Joe is regularly called on by contractors, insurers and trade groups to help clients to control potential areas for exposure and liability before claims arise. He holds a B.A. degree from Auburn University and a J.D. degree from the University of Alabama. Joe is AV rated by Martindale-Hubbell. jduncan@huielaw.com Jeremy Gaddy is an associate with Huie, Fernambucq & Stewart, in Birmingham. His practice includes cases involving construction issues, as well as other areas of general civil litigation and product liability. He holds a B.S. in Industrial Engineering from Georgia Tech and a J.D. from the University of Alabama. jgaddy@huielaw.com

Our safety culture is driven by one fundamental goal: an unwavering commitment to the well-being of employees, subcontractors, and the communities in which we work. It’s a driving element of our company and a mainstay in our culture.

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

We Recommend: www.huielaw.com JUN/JUL 2012

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Safety Focuses on Maintenance Management

for Medium-Size Fleets

by DAN RIPPLE, ENTERPRISE FLEET MANAGEMENT

Safety programs are branching out. In addition to developing and implementing safety programs and policies to help employees avoid work related accidents, construction industry contractors are increasingly outsourcing maintenance management programs to fleet management professionals to help ensure the safety and performance of their fleet of vehicles.

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Safety

A

good example is B&G Equipment and Supply, a multi-location renter and seller of a variety of top-of-the-line equipment and construction supplies that is based in Birmingham. With a fleet of approximately 40 vehicles that are used to service customers throughout Alabama, as well as Atlanta, Orlando and Nashville, B&G Equipment and Supply has outsourced maintenance management to Enterprise Fleet Management for more than five years.

According to Marty Hardin, Director of Operations for B&G Equipment and Supply, outsourcing maintenance management to fleet management professionals has a direct impact on safety.

“Enterprise Fleet Management tracks and monitors every aspect of maintenance for each of our vehicles from routine service to warranty repairs,” said Hardin. “This not only helps to ensure that each vehicle is operating at peak performance capacity, it also means our employees are better protected because they are driving vehicles that are in the safest possible condition.”

B&G Equipment’s maintenance management program includes everything from replacing wiper blades to rebuilding transmissions for one monthly rate. “Working with service advisors who are ASE (Automotive Service Excellence) certified, we can not only arrange the most economical, timely and high-quality repairs when needed, but also ensure maximum warranty benefits, as well as rebates, price breaks and other opportunities to minimize expenses,” said Hardin.

In addition to safety, outsourcing maintenance management has other benefits. “Instead of spending my time monitoring fluid levels, tire pressure and transmission filters for every vehicle in our fleet, I have more time to focus on serving our customers and engaging in revenue-producing business opportunities,” said Hardin. Plus, Enterprise helps us save money by avoiding more costly repairs or loss of productivity due to down time while a vehicle is being serviced.”

STRUCTURING A MAINTENANCE MANAGEMENT PROGRAM THERE ARE MANY WAYS TO STRUCTURE A PREVENTATIVE maintenance program to suit an individual company’s budget and needs. To help maximize savings, a professional fleet management company may use a service interval guide that considers the optimal timing for preventive maintenance to stay within warranties for all makes and models. Their expertise may also help drivers take advantage of opportunities to combine service with the replacement of various components that may be covered by warranty, to further reduce costs.

A fleet management company can also be a watchdog. For example, if a repair shop recommends new spark plugs for a vehicle with 60,000 miles, the fleet service company will question the shop about why the tune-up is needed. Unless there is

a drivability problem, spark plugs in most vehicles are good for 100,000 miles. Also, many of the fluids used in today’s vehicles, such as transmission fluid, differential oil, and engine coolant, have extended service intervals.

In addition to these things, a professional fleet management company may be able to negotiate better prices on maintenance and repairs, facilitate goodwill assistance claims, and secure available rebates. Often, this negotiating ability can mean avoiding paying for unnecessary repairs and service or those that may be already covered by warranty.

Working with a professional fleet management company that is familiar with every manufacturer’s warranty can also help the contactor stay up-to-date with required maintenance schedules that comply with the manufacturer’s recommendations. In addition, every receipt for work done on a vehicle may be documented and recorded by the fleet management company. If a dispute arises over warranty coverage, having a comprehensive detailed record makes a huge difference in getting the warranty claim paid.

Left: Marty Hardin, Director of Operations for B&G Equipment and Supply.

CHOOSING A SAFE VEHICLE NOT THAT LONG AGO PICKUP TRUCKS AND CARGO VANS were basically “one size fits all” and making a choice was as simple as finding the lowest price. Today, with more than 100 combinations for pickup trucks and cargo vans, choosing the right vehicle is a lot more complicated, and choosing the wrong vehicle can compromise safety.

For example, although drivers may be tempted to continue to load materials into their trucks if there appears to be space left in the vehicle, it’s important to remember that trucks are not designed for weights above the rating the manufacturer has established. Overloading a truck can cause premature mechanical failures on driveline components such as axles, drive shaft universal joints, transmission, suspension parts and brakes, all of which affect vehicle performance and safety.

B&G Equipment also relies on Enterprise to manage its vehicle replacement program, also called cycling. In addition to acquiring new vehicles at the best possible price, with all possible discounts and rebates, cycling helps B&G Equipment replace vehicles at appropriate intervals to achieve optimum performance and the best resale value.

The goal is to minimize the net depreciation and operating costs of the vehicle by managing its lifecycle. Money saved on the vehicle disposal process can have an equal or greater effect on a contractor’s bottom line. Contractors need to carefully consider when to sell vehicles and the best methods to do so.

How and when a contractor decides to sell its vehicles depends on many variables such as time of year, mileage, vehicle type, age and maintenance history, as well as the current used car sales market. One way to do this is by working with fleet

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management professionals to perform a vehicle analysis that looks at the entire fleet, and how the contractor’s vehicles are used. From that analysis, the strongest time of the year to remarket or cycle vehicles can be determined.

Finally, leasing vehicles through a professional fleet management company offers a variety of advantages. Establishing a separate line of credit through the fleet management company may be a better strategy than using the businesses’ own available operating capital or tapping its line of credit at the bank to purchase vehicles that depreciate quickly.

While traditional financing or outright purchase of vehicles generally requires a complete payback of the principal balance, most leases do not. Not only can monthly payments be lower with lease funding, but a business may be able to substantially improve cash flow over the life of the vehicle by working with fleet management experts to set proper residual values to avoid losses at the end of the lease.

ABC OF ALABAMA FLEET MANAGEMENT PARTNER SIMPLY STATED, MEASURING CUSTOMER SERVICE FOR fleet management depends on two basic principles: the strategic partnering process and the ability to analyze key end-to-end activities associated with entire lifecycle of a fleet of vehicles.

The strategic partnering process begins with aligning customer goals with fleet management actions by identifying needs, quantifying opportunities, evaluating solutions, implementing plans and measuring both performance and continuous improvement.

This works best when the fleet management company has a well-trained local account team in place to proactively manage individual customer relationships on a day-to-day basis.

The strategic partnering process can also extend to fleet customers who are members of ABC of Alabama, which has negotiated a partnership agreement with Enterprise Fleet Management. Benefits range from receiving up to 15 percent savings or more in fleet operation expenses to discounted pricing on all makes and models of cars, trucks and vans, as well as incentive programs negotiated with certain manufacturers that enable customers to receive the best pricing available for vehicle acquisition.

Experience proves a “good deal” can sour quickly if your longterm needs are not being served by the most qualified professionals. Customer service makes the biggest difference when a fleet management company has the ability to successfully function as a customer’s management advisor with a proven program of best practices to reduce costs and maximize performance.

The bottom line is to remember not to wait until after you’ve accepted delivery of your new company vehicles to find out that “customer service” doesn’t mean as much as you thought it would. Look carefully at customer service programs before choosing a fleet management company and consider the company that has an established partnership agreement with ABC of Alabama.

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Dan Ripple – Enterprise Fleet Management Dan Ripple is the Area Sales Manager for Enterprise Fleet Management in Alabama and can be reached at 205-823-4599. He is supported by an experienced team of veteran mechanics and accredited Automotive Service Excellence (ASE) technicians to serve the fleet maintenance needs of businesses with midsize fleets. In addition to maintenance management programs, Enterprise’s services include vehicle acquisition, fuel management and insurance programs, as well as vehicle registration, reporting and remarketing. Visit the company’s web site at www. efleets.com or call toll free 1-877-23-FLEET.

We Recommend: Visit www.efleets.com/content/fleets/ pdf/2012_Fleet_Preview_Guide.pdf to download the 2012 Fleet Preview Guide.

photograph by BRIAN AUTHEMENT

Illustration by Name Here

photograph by NAMEGOES HERE

APR/MAY 2012

AL CONSTRUCTION NEWS

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ACCIDENT ANALYSIS Instead of Investigation

Just filling out paperwork and saying “should have been more careful” masks potential learning in preventing future accidents

By HUGH J. RUSHING

F

RANK WAMPOL, SAFETY DIRECTOR OF B.L. Harbert International, tells the story of a crane tipping over. The investigator of the accident concluded, “You’d think, given all of the publicity about crane safety, that they would have been more careful.” Wampol says that the investigator should have begun the report by looking into the seemingly poor decision rather than ending the report on that note. Wampol is now authoring an article regarding hindsight bias.

“My focus is how and when these investigations become biased by the investigator’s outcome knowledge,” says Wampol. In the process of an investigation, when we look back armed with full knowledge of the incident outcome, an entirely different perspective results.

“This cripples the efforts to prevent future disasters.”

John Placey, senior vice president for risk control for Willis North America, a global insurance broker based in Birmingham, believes that assigning blame for accidents rather than making an indepth analysis of an accident and the factors leading up to it mean that the same accident is just as likely to happen again as it is to not.

John Placey offers a multi-variant analysis of the 100-year-old sinking of the ocean liner Titanic as part of his argument. “Here’s an accident that is still being investigated. The crew didn’t have binoculars, leaving the ship only 30 seconds between the sighting of the ‘berg and the collision,” says Placey. “Bulkheads didn’t go up all the way to the top deck, in consideration for first-class passenger’s room size. There was no alarm system for evacuation.” He continues, “There weren’t enough lifeboats carried for all the passengers aboard. The ship had received six warnings regarding area icebergs prior to the collision

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but maintained the same speed so it would meet its landing schedule.” Placey concludes, “The vessel California was only 19 miles off, and if its radio operator had not retired for the night, the ship could have easily reached the Titanic well before her sinking.”

All of those factors, in a domino effect, acted together to doom the supposedly unsinkable ship. “If we investigated accidents, incidents and near misses with the thoroughness and vigor with which the Titanic has been investigated over the years, there would be a lot less accidents in our future,” says Placey.

Wampol points to aircraft accident researcher Sydney Deckker who authored The Field Guide to Understanding Human Error (Ashgate Publishing, 2006). Deckker says that a new approach to accident investigation sees human error as a symptom of trouble deeper within the system. The new approach tries to understand how people’s assessments and actions made sense to them at the time, given the circumstances that surrounded them.

“If it made sense to them at the time, it’s possible that it will make sense to those in the future, leading to a repeat of the accident,” says Wampol.

Both Wampol and Placey agree that most accidents have multiple causes. “Trying to find a root cause is fundamentally wrong, in that overt failure typically requires multiple faults,” says Wampol.

Such multiple causes of accidents may have the effect of radically altering how training programs and information delivery is done for safety programs. Instead of an academic recitation of rules and facts, we may need to use real-world situations. These can be practiced with role-playing and in depth case studies, in order to achieve situational awareness in an every changing environment.

Pilot training for commercial airlines feature hours of simulator training, mimicking in the most real way possible hundreds of

Safety “ Instead of an academic recitation of rules and facts, we may need to use real-world situations. These can be practiced with role-playing and in depth case studies, in order to achieve situational awareness in an every changing environment.” potential challenges to safe flight. “Simulators are not in wide use in the construction industry,” Wampol says. “About as close as we come is something akin to a video game as opposed to a simulator.”

Wampol wonders about continued emphasis of triggering events rather than a reliance on moving from the triggering event back in time and accounting for the multiple causes of a work place accident. “Investigations to satisfy compliance regulations don’t address behaviors and those multiple conditions which seem to contribute

to an accident. Until we dig deeper and further, we are probably not going to make a lot of progress in prevention.”

Goal conflict on a construction job also should be investigated when incidents occur. Wampol offers as an example the job of an anesthesiologist, a profession where patient safety during surgery is an overriding goal. “But at the same time there are the goals of reducing costs, avoiding litigation, maintaining good relations with the surgical service and maintaining flexibility to allow for handling emergencies,” says Wampol. “Balancing all those goals can result in the evolution of a patient care mishap. Developing a culture of safety value as opposed to one of many competing goals ought to be essential.”

Wampol thinks that the construction industry ought to move away from poor systems of accountability, “not an absence of accountability, rather a shift to a system that searches for patterns in accidents and near-miss incidents from the perspective and mindset of those who were actually there.”

“Retooling our approach to training to include incident patterns into scenario-based training and sending a clear cultural message of safety as a core corporate value will have a lasting impact,” Wampol says.

Robins & Morton is the proud recepient of the “Safest in the Industry” GOLD Level award from Associated Builders and Contractors (ABC) of Alabama.

Illustration by Name Here

Ensuring the safest workplace for our employees, subcontractors and clients is a priority on every single project.

photograph by NAMEGOES HERE

BUILDING WITH PURPOSE. APR/MAY 2012

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R E P U B L I C A N A L A B A M A S E N AT O R

Slade q

Blackwell

by HUGH J. RUSHING

Looking Back: Senator Slade Blackwell Reviews the 2012 Alabama Legislature’s Sessions SENATOR SLADE BLACKWELL WAS ELECTED to the Alabama Senate in November of 2010. He is a native of Montevallo and graduated from the University of Montevallo in 1991. He is a real estate developer and his company, Inkana, specializes in complex projects, partnerships and joint ventures in the healthcare and infrastructure industries. In the Alabama Senate, Blackwell chairs the Banking and Insurance Committee. He’s vice chair of the Job Creation and Economic Development Committee and serves on the Health, Confirmations, Education, Business and Labor, Finance and Taxation Education Committees.

Blackwell took time at the end of the 2012 session to respond to questions from Alabama Construction News.

PROFILE

What overall grade would you give to the Alabama Legislature for its 2012 session?

Given the unprecedented budget shortfalls and many other challenges we faced this session, I would give the legislature a solid “B” for passing a number of bills aimed at job creation. I think we made great progress in passing legislation that will benefit our businesses - both existing and those who are looking to locate here.

I am most proud of the Senate for recognizing the need to streamline state government and reduce wasteful spending. For example, a bill I sponsored in the Senate, SB459, also known as the ONESPOT bill, creates a streamlined, statewide filing system providing businesses with a single online portal for filing sales, use, lease and rental taxes with the state. Before this bill, a business would have to file different tax returns for every county, city or municipality in which they do business. In some cases, businesses were having to file up to 150 different returns and write up to 150 checks to as many as 150 different entities every month, causing an administrative nightmare.

What bill, if any, were you especially disappointed did not get passed? What would it have done?

One bill that I would have liked to have seen passed was HB160. This bill, also called the Alabama Job Creation and Retention Act of 2012, would allow Alabama companies that undertake certain qualifying projects to retain a percentage of state income taxes withheld from eligible employees. This bill would have helped our economic development initiatives to recruit new businesses and industries to the state while also creating many jobs that Alabamians desperately need right now. I hope to see this bill come up again in next year’s legislative session.

How do you respond to construction executives who feel their businesses have been adversely financially impacted by the state’s tough immigration statute, as amended?

Absolutely no doubt there are some unforeseen consequences that we did not see coming.

However, every contractor I talked to did not support lawlessness and open borders. Unfortunately, for our industry, guest workers are a national issue and I truly feel the solution does lie nationally. At the beginning of the session, photograph by TODD WALKER

a majority of Alabama citizens -- actually over 80% -- felt this was one major issue the Republicans neededt to address and as a whole, we decided to address it. What I am proud of is the revisions we were able to secure for contractors. We stripped the burdensome affidavit language and got the definition of a job site clearly defined to ensure those trying to comply and showing due diligence did not get shut down. I do know this was two of ABC of Alabama’s priorities. But do note that those contractors that show good faith efforts in their hiring practices and enroll in e-verify are very unlikely to be ruled against in court. It is a law for reckless bad actors. Looking ahead two things can happen: Whether the Supreme Court ultimately decides the language in our bill went too far-reaching or the federal government takes a comprehensive look and comes up with a nationwide solution, we as a party were at a point where we had to address the subject.

What do you see as priorities for the next session of the legislature?

As a small business owner and real estate developer, I understand the needs of the construction industry. Job creation and pro-business bills will continue to be a priority for in the next legislative session. We must continue to pass legislation that will attract new businesses to the state while also protecting our existing businesses.

For the construction industry, we are already working on priorities. We will be reviewing the sales and use tax exemption process to try to reinstate the 2004 process. ABC has met with the Attorney General and the Revenue commissioner and I will be meeting with ABC to discuss how best to legislate that change while not interrupting the revenue stream generated on projects that do require sales tax. We feel confident this can finally pass in 2013. Additionally, the industry needs a better mechanics lien bill.

ABC of Alabama has researched 14 States Mechanics Liens bills and we are now looking at Florida’s as our model. We will task force this subject over the summer and hope to have a bill ready by November. The previous items are very specific to construction but rest assured the party is keeping job creation and economic development incentives on the front burner and those two items equal JOBS.

Alabama Legislature Passes Pro-Business Bills in Session: A number of bills supported by ABC and/or the Alabama business and industry community were successfully passed by the Alabama Legislature in its recently concluded session. Here’s a brief recap: HB151--Changed the names of the Alabama Development Office and its director to the Alabama Commerce Department and the Secretary of Commerce. The bill also authorizes assistant secretaries of commerce and the employment of certain employees outside the state merit system.

HB 154—Abatement of ad valorem and construction related transaction taxes for data processing centers, warehouses and storage facilities locating in the state.

Matches inducements which other competing states now employ.

SB107—Existence of the Electronic Security Board of Licensure continued until October 1, 2016 with authorization of the board to stagger licensing.

SB114—Plumbers and Gas Fitters Examining Board continued until October 1, 2016.

SB115--Electrical Contractors Board continued until October 1, 2016.

SB116—Board of Heating, Air Conditioning and Refrig-

eration Contractors continued until October 1, 2016 (The previous three bills are all pursuant to the Sunset Law).

SB139—Roadway contractors’ liability and responsibility cease upon acceptance by the transportation department, county or local government that the project is in substantial compliance with contract documents, plans and specifications.

SB280—Certificate of Foreign Birth allowed without judicial proceedings if certain criteria are satisfied. Will make foreign adoptions easier.

SB300—Clarifying the definition of a compensable week for unemployment compensation.

SB341—Alabama Uniform Environmental Covenants Act will exempt underground and aboveground storage tanks storing motor fuel in the future.

SB382—Continues without sunsetting the Alabama Construction Recruitment Institute that collects craft industry fees for recruitment and promotion of the construction trades.

SB459—Allows payment of taxes through an electronic single point of filing program without charge under rules issued by the Revenue Department. State and local advisory committee created.

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C O N S T R U C T I O N

Could Lean Construction Return Commercial Building to Profitability?

There are those who say that is may be the only way going forward. A look at the state of Lean Construction.

by HUGH J. RUSHING ICHARD DRENNEN, THE PRESIDENT of Superior Mechanical Inc. is a believer. As sort of a one-man evangelist for lean construction, Drennen is convinced that only through using lean construction techniques can companies return to profitability. He even has a slide that he shows to people that explains that the former “profits” have disappeared under the realities of supply and demand and that only by elimination of waste and inefficiency will any firm be able to survive in the new paradigm the construction industry finds itself.

“I am truly confident that the only way that we can thrive in the future is to find ways to eliminate waste of labor, time and materials.

Owners are going to demand it and only those firms which can deliver on those demands for efficiency will survive.”

Lean construction essential is an offshoot of a manufacturing system most fully adopted

by Toyota beginning in 2001. By 2004 an influential book was authored by University of Michigan professor Dr. Jeffery Liker called The Toyota Way. Fourteen key principles of Toyota’s success were identified by Liker covering philosophy, correct processes producing the correct results, the development of people and their planning and managing skills and continuous improvement.

Toyota’s production system was termed by an MIT study as “the machine that changed the world”. Its new car development time is two years compared to four to six for other firms. Its latest retooling change over at its Georgetown, Kentucky plant was 15 days—a month quicker than its previous changeover. By 2005 in the U.S., Toyota could produce a car or truck with only 27.9 man-hours of work, contrasted to 34-37 hours for G.M. or Chrysler. That meant that all things being equal, Toyota was at a minimum 18 percent more efficient than G.M. or Chrysler.

But building a structure isn’t the same as bolting on fenders or dropping an engine into a chassis. Every construction project is different, fluid and comes with its own sets of oddities and challenges.

But that doesn’t perturb Leroy Morrow, president of Basic Lean, Inc. of Midway, Kentucky, a consultant to lean firms, including Drennen’s Superior Mechanical says, “The old methodology and mind set of the trade industry is one that is built on speed, speed, speed which is buried in excess cost. It is just a matter of time before the Construction Industry grabs the tools of lean manufacturing and begins to create change that will improve the overall business operational efficiencies and to improve the bottom line of both the Owners and the construction companies.”

Already in Birmingham there’s a group of like-minded construction professionals who have formed a Community of Practice which is under the auspices of the Lean Construction Institute, a not-for-profit organization dedicated to developing a common language and set of basic practices for the construction industry.

Ashley Coburn, who recently went to work as lean leader with Brasfield & Gorrie LLC, points out that the construction industry wastes 57% in an average project, with the largest waste coming from labor waiting to perform their job. “You’ll never end all waste— even Toyota has 12 percent—but 57 percent is an incredible number.” Coburn says that contingencies are simply planning ahead for delays and failures instead of relentlessly tracking down the reasons for delays and working to eliminating them. “Poor planning and execution leads to delays in every handoff from one trade to another. Lean construction and its emphasis on cooperation and planning can reduce those delays and allow the industry to make money again, while delivering to owners a better product, more

“I am truly confident that the only way that we can thrive in the future is to find ways to eliminate waste of labor, time and materials,” says Drennen.

“Owners are going to demand it and only those firms which can deliver on those demands for efficiency will survive.”

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the construction industry wastes 57% in an average project

by its owner. “There’s an opportunity cost. The sooner you can use the room, rent the space or otherwise move into a more efficient space, the sooner revenue can be generated: the ability to maintain high-quality product while simultaneously improving speed to market is key to the success of prefabrication.” Giattina was also involved in the design and construction of the Northport Presbyterian Elderly Housing, a project that utilized prefabrication to construct a three-story, fifty unit housing complex 50% faster than possible using conventional methods.

Greg Howell, president of the Lean Construction Institute says traditional contracts don’t aid on lean construction. His organization has worked to produce a consensus document that can help companies wanting to perform utilizing lean techniques. “In talking with bonding and insurance professionals, despite that we think risk arises due to screw-ups or a hired ‘bad actor’, the majority of risk arises due to the way we manage the work. Lean construction mitigates risk and enables all the stakeholders to have more confidence in a good outcome.”

Additionally, Tom Love of the Lean Construction Network feels that lean construction can help companies work together more closely in bringing a project online. “The entire construction process on a project is a partnership between companies working toward a common goal. The sharing of ideas, providing insight and expanding the process of continuous improvement helps bring everyone to a higher level.”

So, what does it take for a company to get involved in lean construction? Ashley Coburn says that firms ought to “Spend a little to save a lot. You can get involved in the CoP, read the book the Toyota Way, join the Lean Construction Institute (between $5,000 and $7.500 annually depending on the number of employees), and hire a moderately priced consultant to get started.”

Richard Drennen says that companies practicing lean construction are typically helpful in getting others involved in the program.

Toyota’s production system was termed by an MIT study as “the machine that changed the world”

quickly and at a lower cost.”

Rodney King, Superior Mechanical’s own lean leader demonstrates how his firm uses the Last Planner system. Based on simple paper forms or a simple spreadsheet on a computer, the system allows for collaborative scheduling and programming of the main project suppliers from the beginning. “We involve everyone from the top to bottom. It doesn’t require any sort of thing other than common sense to grasp,” King points out. “It works to smooth the workflow, decreases waiting around and cuts down on project times.”

The use of prefabrication and off-site construction can also be a component of lean, according to architect Chris Giattina, of Giattina Aycock Architecture Studio. In construction of a $20-million medical building, the general contractor utilized BLOX Manufacturing to produce completed examination rooms. Produced offsite and delivered to the job site, the pre-fabricated rooms were set into place and connected to the building’s electric, HVAC and plumbing systems. “As a test case, we compared the BLOX costs to equivalent rooms being constructed across the hallway. The onsite product cost about the same as the prefabricated units, but took twice as long to build.” Giattina points out that the quicker a project can be completed, the sooner it can be put to use productively

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“We’ve taken trips to visit companies known for their best practices and have freely borrowed ideas from them.” One firm Drennen is particularly impressed with is Baker Concrete Constructors which did a major piece of work for the Thyssen-Krupp plant in South Alabama. Baker used the lean principles on a 100,000 cubic yard foundation package that was nearly identical to another similar foundation package that was underway. Lean helped the team complete the “twin” project nearly three months faster than its predecessor, according to the Monroe, Ohio based firm.

One of the areas that has embraced lean construction more fully than others is that of health care construction. The need for ontime or early delivery of hospitals has put an emphasis on cooperation between trades, shared risk through IPD techniques, and meticulous planning in order to avoid delays and rework.

Drennen pointed to his firm’s work at Children’s Hospital. Setting up an off-site manufacturing division allowed crews to pre-cut needed pipe and fly entire packages for a room to the floor on which the work was occurring. “Why pay a plumber to cut the pipe when you can get a trained person to do so at an offsite location a greatly reduced expense?” The result was that job waste was virtually eliminated. Superior Mechanical’s plumbers were able to complete some 600 feet daily of pipe installation compared to a previous average of 200 feet.

Tom Love feels that in addition to healthcare, institutional and industrial clients will be next to adopt lean. “Particularly if they are having inconsistent results on projects, they will be encouraged to adopt a lean approach.”

At a recent meeting with Robins & Morton, Drennen showed a Powerpoint presentation regarding lean construction, describing how it benefits owners, produces projects with a shorter time line, enables both owners and contractors to achieve better financial results. It seemed to be well-received. “Everyone knows that doing things the old way isn’t just a viable business model any longer.

Lean can provide improvements in the entire process.”

Ashley Coburn says that lean even harkens back to World War II, where America developed innovative ways to reduce costs, speed throughput of war materiel and eliminate waste. “This recession is like the war was; it has brought us the recognition of how to make money again.”

We Recommend: www.abc-alabama.org/lean.aspx

design and construction performance. It’s available without charge and without limits.

A Toolbox for Lean Construction Lean Construction is a field rife with new ideas and views on how construction ought to be done in a highly efficient manner. While some may argue for inclusion or exclusion of certain ideas, here are some general principles which typify Lean Construction.

Integrated Project Delivery—IPD may not be essential, but projects using IPD are much more likely to be successful in Lean Construction techniques. Shared risk and reward is a powerful binder.

Pre-fabrication where possible—Modular subassemblies have the potential to reduce waste, eliminate conflicts in labor forces and can perform more efficiently than on-site construction.

Recording Reasons When Promises Aren’t Kept and Analyzing Them for Improvements—Making sure one understands the reason why a promise wasn’t kept is the only way to assure that a similar delay won’t again occur.

Intense, “pull” scheduling—The schedule works to pull the sequence of work in a logical and efficient manner as opposed to being pushed.

Team Building and Refusal to Shift Blame or Liability—Successful lean building means the ultimate in team work. A failure of one trade or promise to perform is seen as failure by all.

Building Information Modeling—BIM can help prevent problems before they occur by aiding in the logical schedule of sequences of work.

Use of the Last Planner System®--A trademark of the Lean Construction Institute, the system allows firms to improve their

JUN/JUL 2012

Partnering with likeminded construction professionals to adapt and learn—Communities of Practice (CoP’s) allow professionals to provide instruction and support to one another, strengthening the commitment to Lean Construction.

The goal is that NO contingencies should be necessary—Contingencies are markers for excuses and poor planning. While no project can be perfect, if one plans to fail, it increases the predictability of failure.

Increased transparency between everyone from owners to laborers—Only with a unified and clear vision of the completed project will everyone be willing to work together. Playing “gotcha” is deadly to Lean Construction.

Work is designed and managed by those who do it rather than “planned from above”—Managers are to walk around and encourage those doing the work to be both the planners and executors.

People support what they help plan.

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ABC of Alabama & Lean Business Network present:

“I am truly confident that the only way that we can thrive in the future is to find ways to eliminate waste of labor, time and materials.”

– Richard Drennen For years manufacturing and service industries have increased their levels of productivity, quality, and profitability by applying LEAN principles.

Currently, the construction industry is going through a revolution due to the economic climate. Profit margins for all companies are being reduced to the point that the risk/ reward ratio has no relationship to the project cost.

In order to make this kind of progress, organizations have to start understanding the Lean Principles and apply them to their businesses. The mechanics of lean systems (kaizen, pull systems, flexible cells, and so on) are simple in concept and thus appear easy to implement. Yet, few organizations are able to implement “lean” the first time they try.

Single Class Session (intro course):

10-course package:

20-course package:

Single Class Session (intro course): Single session, 2 hours, offered multiple times Offered at scheduled times statewide $75 per person Max of 60 attendees – Min 20 attendees

10-course package: 10 courses over one-year period – 2 hour sessions 2 employees per company – shared experience $1500 per company Max of 25 companies – Min 15 companies

20-course package: 20 courses over one-year period – 2 hour sessions 2 employees per company – shared experience $2500 per company Max of 25 companies – Min 15 companies

visit www.abc-alabama.org/lean.aspx to learn more, and sign up your team to join us.

SAFEST in the

Industry

Headline Here Want to forget all about the heat?

Try of Hemingway’s favorite

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Illustration by Name Here

by JOHN KESSLER

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Charley Fulton of Rust Constructors

APR/MAY 2012

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Alex

Napier Eagle Award Winner, Thompson Engineering

ABC Safety Director of the Year 2012

by HUGH J. RUSHING If there is a safety director with a more challenging and varied job than Alex Napier’s, he can’t think of it. The 2012 ABC-Alabama Safety Director of the Year award winner presides over far-flung and varied activities of Mobile-headquartered, Thompson Engineering.

Illustration by Name Here

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“WE DO BOTH ENGINEERING AND architecture, acting as a prime contractor on design/build projects; we do soil testing, a lot of highway construction inspection and testing work across four states,” says Napier. We have six survey crews scattered throughout the Southeast, four drill rigs and crews and even an elite group which rappels down tall buildings to do engineering inspection on high-rises.” The firm also does inspection and engineering work for large refinery and chemical plants as well as offshore oilrig work. Thompson did much of the testing on a levee and dike systems for a city in New Orleans, as they were reworked following 2005’s devastating Hurricane Katrina.

Established in 1953, Thompson Engineering has ten offices stretching from Mobile to Knoxville and multiple satellite offices throughout the Southeast. It is an employee-owned firm with 325 persons working in varied environments. To aid Napier, the company has three safety professionals in its corporate safety department and four safety advisors located in branch offices.

“But even with that size staff, we can’t have a safety advisor out with every activity.

We wouldn’t be successful in our safety program without our entire team’s dedication and commitment to the health and safety of our employees every day,” says Napier.

Napier and his team, supported by top management have worked hard to train each Thompson employee to essentially act as their own safety advisors. The varied work activity the company performs means a myriad of potential accidents. “Everything from a revolving auger, to the dangers survey crews face alongside highways, means our folks are constantly challenged to observe the potential for accidents and plan their work safely.” In 2011, Thompson employees worked over 651,000 hours with only a single medical treatment injury. The firm’s EMR (Experience Modification Rate) is .78. Thompson had no lost time/restricted work incidents or injuries.

Five years ago, using ISO-metrics, Napier authored a systematic Health Safety and Environmental Management system, which is still in place and functioning well. “It continues to guide our work in a sound manner. I drive about 1,500 miles a month and visit each of our offices several times a year to conduct training and support our on-site personnel as well.”

Napier has an environmental science degree and started his career as an environmental engineer for the state of Alabama and then for a major chemical company. “About twenty years ago, the safety, health, and environmental positions were rolled up in a single department. I had the opportunity to be promoted from an environmental supervisor to a health, safety and environmental manager position, and I acted on it.” Napier has worked for Thompson for the past 13-1/2 years. He is a certified safety professional, a certified hazardous materials manager, registered environmental manager, radiation safety officer and holds OSHA 500 and 501 safety certifica-

“I really have to give credit to the support our program receives from both management and my co-workers, because they are the reason Thompson has such an outstanding safety record.” tions, which allows him to teach OSHA’s 10- and 3- hour courses for both construction and general industry. His philosophy is simple: “All workplace injuries and illnesses are preventable. Safety success is derived from establishment and nurturing of a safety culture.”

Thompson Engineering’s executive health and safety committee meets monthly to discuss safety metrics and act on current issues.

“Our president, John Baker, and CEO, James Seawell, are keenly aware of the importance of a safe and healthy workplace and are one hundred percent supportive of our program,” Napier says.

Thompson recognizes safe behaviors with both individual and group awards. Spot bonuses are utilized for extraordinary safety excellence. A year without reportable injuries produces a safety bonus to employees. Employees nominate fellow-workers for a safe employee of the year award as well.

“I was surprised and humbled to receive the Safety Director award from ABC-Alabama,” Napier said. “I really have to give credit to the support our program receives from both management and my co-workers, because they are the reason Thompson has such an outstanding safety record.”

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Charley Fulton & Janet Glover of Rust Constructions

Illustration by Name Here

Buddy Stewart & Dennis Baham of Ivey Mechanical Company

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photograph by NAMEGOES HERE

Eagle

Awards 2012 SAFETY

Alex Napier Thompson Engineering

THERE WERE THREE RECIPIENTS OF THIS YEAR’S EAGLE Awards. Rust Constructors, Ivey Mechanical and Thompson Engineering were all given an award for the exemplification of safety on the job.

RUST CONSTRUCTORS WAS THE WINNER OF THE GENERAL CONTRACTOR EAGLE AWARD. President & COO of Rust Constructors Inc., Chris Phillips recognizes the importance of safety.

“This Industry Recognition is the result of the strong safety culture, effective ES&H programs, and employee commitment to create and maintain a safe work environment that exists within our Company,” says Phillips.

Rust Constructors is a full-service, merit-shop construction and maintenance company providing life-cycle services for the industrial mining, power, infrastructure, and government markets.

Its services include construction, construction management, construction consulting; testing, checkout, start-up; and plant services including total plant maintenance, supplemental maintenance, shutdowns, turnarounds, small capital project support, production support and technical support.

Rust Constructors is a recognized leader in the industry and very deserving of recognition for all of its safety accomplishments.

ANOTHER INDUSTRY LEADER IS IVEY MECHANICAL, RECEIVING THIS YEAR’S SUBCONTRACTOR EAGLE AWARD. Buddy Stewart, president of Ivey Mechanical Company, LLC, spoke of Ivey’s commitment to excellence. “For sixty-five years, Ivey Mechanical has been committed to a high set of standards. Our mission to provide quality mechanical services has been accomplished through the integrity, determination, and perseverance of the employees,” says Stewart. Ivey Mechanical is a unique company not only because of its size and national ranking, but mostly because those employed, have a commitment to excellence.”

Ivey Mechanical prides itself on the efforts put forward during client pre-construction, construction, service and fabrication. And as a big competitor in the industry, the company excels in all areas.

Ivey also offers a wide variety of approved apprenticeship courses.

This allows for employees to earn more money and collect bonuses while learning a construction trade.

All ABC Eagle Award winners for safety possess a common thread. Regardless of they type of company, Eagle Awards are given to a very specific set of sighted traits, which include: // Top management support for safety—both emotional and financial // A safety plan that recognizes the culture and unique properties of the company // No-fault work stoppages to prevent/correct a potentially unsafe condition // Recognition and support of individuals who practice and intervene on behalf of safety // Realization that safety doesn’t impede productivity but actually promotes it // The building of a safety culture from the lowest employee on up—not dependence on a safety professional

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Safest 2012

in the

IndustryAwards

ABC

of Alabama recently held it’s annual Safe Day banquet.

This banquet honors those who have shown outstanding corporate safety and health plans that exhibit superior safety initiatives.

ABC would like to recognize those who have put in the extra effort to achieve these safety goals as well as those who have received national recognition for their merit in the in construction industry.

At this year’s banquet, the highest level of success was acknowledged through Eagle Awards.

Other recipients included those receiving the Gold Awards and Silver Awards.

Alex Napier of Thompson Engineering was recognized as Safety Director of the Year.

2012 ABC of Alabama Chairman, Geoff Golden commented, “Our industries commitment to safety is essential in protecting the lives of our employees. These companies definitely show their dedication to saving lives and are creating a safe environment to work.

Congratulations to them all.”

ALSO RECOGNIZED AT SAFE DAY: EACH YEAR THE ALABAMA CHAPTER of the American Society of Safety Engineers honors its own by the awarding of the Safety Professional of the Year.

The Chapter recognizes two outstanding individuals with the SPY awards…one for General Industry and one for Construc-

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DIRECTOR OF THE YEAR Alex Napier, Thompson Engineering, Inc.

EAGLE AWARD Rust Contructors Inc. (GC)

EAGLE AWARD Ivey Mechanical Company (Sub)

EAGLE AWARD Thompson Engineering, Inc. (Other)

GOLD AWARD Adkins & Kimbrough Mechanical, LLC

GOLD AWARD Ard Contracting, Inc.

GOLD AWARD ATC Assoicates, Inc.

GOLD AWARD Brasfield & Gorrie, LLC

GOLD AWARD Bright Future Electric, LLC

GOLD AWARD CS Beatty Construction, Inc.

GOLD AWARD Dunn Construction Company, Inc.

GOLD AWARD Gaylor Inc.

GOLD AWARD Hardy Corporation

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GOLD AWARD Hoar Construction, LLC

GOLD AWARD JESCO, Inc.

GOLD AWARD Robins & Morton

SILVER AWARD Block USA / Ready Mix USA

tion and for 2011-2012 the Alabama Chapter of the American Society of Safety Engineers proudly recognizes Kurt M. Friend, CSP as the ASSE Alabama Chapter Construction Safety Professional of the Year.

Kurt Friend’s experience includes over 23 years in safety and health management in a multitude of industries, including construction, industrial maintenance, shipbuilding, manufacturing, and insurance loss control. He currently serves as a Regional Construction Safety and Health Supervisor for the Southern Company Operations Engineering & Construction Services Division, based in Birmingham, Alabama where he leads the efforts of twelve EHS professionals, providing health and safety management support on construction projects in Southern Company’s West Region, including Alabama, the Florida Panhandle, and Mississippi.

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GOLD AWARD Murray Building Company, Inc.

INNOVATION IN SAFETY Jeff Palombo, Robins & Morton

THANK YOU TO OUR SPONSORS & JUDGES Sponsors

BL Harbert International BHS / Safety First Brasfield & Gorrie, LLC Burr & Forman LLP C.S. Beatty Construction, Inc. Dunn Building Company Enterprise Fleet Management Hoar Construction, LLC Ivey Mechanical Company Penn National Insurance UL PureSafety Robins & Morton Rust Constructors Inc. Saiia Construction LLC

Southern Company Thompson Engineering, Inc. University of Alabama Continuing Studies Willis Judges

Virginia Ames – Retired OSHA John Placey – Willis Bob Fitzgerald – Southern Company Skip Osborn – Zurich

STEPAwards ESTABLISHED IN 1989 BY THE ABC NATIONAL Environment, Health & Safety (EH&S) Committee, the Safety Training and Evaluation Process (STEP) program was developed and written by contractors for contractors.

This program offers many benefits, which include: Providing an organized approach to analyze and further develop safety and loss prevention, Providing an objective method to measure program improvements and Providing safety performance recognition that can be used as a means for business development.

The STEP program also helps ABC National's Safety Committee better identify the safety needs of members. By targeting those needs, they can more effectively develop safety-related materials and programs that will directly benefit the construction industry.

2012 STEP AWARD WINNERS Diamond Level Caddell Construction Co. Performance Contractors Rust Constructors Platinum Level B.L. Harbert International Bright Future Electric C.S. Beatty Construction Dunn Building Company Erected Steel Products of Alabama Golden & Associates Construction Ivey Mechanical Company JESCO Prier Construction Incorporated Rogers & Willard The Saxon Group

Gold Level Adkins & Kimbrough Mechanical Ard Contracting Brasfield & Gorrie Doster Construction Co. Dunn Construction Company Gaylor Hardy Corporation Hoar Construction M.J. Harris Marathon Electrical Contractors MSE Building Company S & S Sprinkler Company Saiia Construction Company White-Spunner Construction Silver Level Murray Building Company Patco Electrical Contractors Premier Service Company Robins & Morton Summit Electrical Construction

RETREAT. REGROUP. RELAX. Reload.

SELWOOD FARM 706 Selwood Road Alpine, AL 35014 800.522.0403 selwoodfarm.com SELwOOD FARm 706 Selwood Road Alpine, AL 35014 800-522-0403

R EC SP O EC G IA N L IT IO N

T

RUST

CONSTRUCTORS

THE ALABAMA CHAPTER OF ASSOCIATED BUILDERS & Contractors (ABC) has named URS’ Rust Constructors the Eagle Award winner in its Safest in the Industry Awards program. The Eagle Award is the highest possible honor and recognizes companies with outstanding corporate safety and health plans. Since 2000, Rust Constructors has continuously been honored with Safest in the Industry Awards by ABC for maintaining an exceptional safety record.

Rust Constructors, a wholly owned subsidiary of URS, also is being recognized as a Diamond LevelSafety Training Evaluation Process (STEP) Winner for the second year in a row.

STEP Diamond recipients must have long-term records of exceptional safety performance. Rust has been a Diamond or Platinum level recipient since 2004.

Safety is a core value at Rust Constructors and across URS Corporation as a whole—from how the Company approaches complex projects to how we train our employees. The Company’s strong commitment to Environmental Safety and Health is demonstrated by its goal of zero injuries and accidents, and a commitment to incorporate safety into all aspects of the business. Each employee shares an obligation to prevent accidents and a responsibility to integrate safety into his or her

daily operations. “We not only incorporate ‘best practices’ into our safety culture, but we create them,” said Chris Phillips, President & COO of Rust Constructors. “We rely on experience, continuous training and adherence to strict standards to ensure the safety of employees, partners and the surrounding communities.”

URS never stops evaluating new approaches or technologies to mitigate risks. As a result, the Company has become an industry leader in safety.

In addition to being recognized by ABC, URS received a Construction Industry Safety Excellence Award from the Construction Users Roundtable; a Construction Safety Excellence Grand Award from the Associated General Contractors; and more than 50 awards from the U.S. National Safety Council, including the Corporate Culture of Safety Award. In addition URS has earned the Occupational Safety and Health Administration’s (OSHA) Voluntary Protection Programs Star Status, the highest OSHA safety recognition, for its strong safety record on many of its landmark projects.

“This industry recognition is the result of the strong safety culture, effective ES&H programs, and employee commitment to create and maintain a safe work environment that exists within our Company.” — Chris Phillips, President & COO of Rust Constructors.

L ON IA T I EC NI SP G O EC R

THOMPSON

F

ENGINEERING

FOR THE THIRD CONSECUTIVE year, Thompson Engineering has been awarded the state’s top safety award, the Eagle Award, from the Associated Builders and Contractors of Alabama. The same group also awarded the 2011 Safety Director of the Year award to Thompson Engineering Safety Director Alex Napier.

“Thompson Engineering continues to earn safety honors because we refuse to compromise our safety values,” said President John Baker. “We recognize that our employees are our most valuable resource, and our commitment and approach to safety continually supports that message.” Baker added, “We have implemented an organizational safety framework that supports the implementation of behavioral safety concepts.

All of our employees expect, and deserve, to work in a safe environment.”

ABC Alabama cites a corporate culture of safety as the main characteristic of its “Safest in the Industry” honorees. Thompson

“At Thompson Engineering, our employees continue to be our most valuable asset. Our culture of safety helps take care of our employees and families, who in turn take care of our company. Safety is a core value when conducting our business of planning, engineering and constructing projects for our many diverse clients. Key to our success with safety has been the use of our Health, Safety & Environmental Management System.

We teach our employees to plan health, safety and the environment into everything we do, to use common sense risk assessments as we conduct our work, and to be alert to what could go wrong. Our employees use their stop work authority to correct issues before they become incidents.

Our systematic approach to safety has proven to be an invaluable tool in helping our employee owned company grow and prosper!”

—Alex Napier, Thompson Engineering

Engineering’s executive commitment to a safety and health management system and safety training for all employees contribute to that culture. “Our employees often engage in high-risk work, from underwater diving to roadside blasting to high-rise rappelling for inspections,” said Safety Director Alex Napier. “Our employees are trained for these situations, and every employee is empowered with the authority and responsibility to stop work in an unsafe environment. And that’s why our safety record is one we’re incredibly proud of.”

Thompson Engineering also received the Mobile Section of the Alabama Associated General Contractors 2011 Construction Safety Excellence Award for Engineering and Construction Management for more than 650,000 hours of work.

In Tennessee, Thompson Engineering earned the 2011 Platinum Level Safety Award from the Tennessee Road Builders Association for 65,080 hours of accident free work.

APR/MAY 2012

AL CONSTRUCTION NEWS

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Southern Company salutes all the 2012 ABC Safe Day Award Winners!

Congratulations on this great achievement.

At Southern Company, our goal is Target Zero safety performance Every Day, Every Job. That means Zero At-Risk Behaviors, Zero Incidents and Zero Injuries.

A S S O C I AT E D B U I L D E R S & C O N T R A C T O R S

News & Notes

JUN/JUL 2012

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News & Notes

ABC of Alabama unveils

3 New Programs for Professional Development.

1

FOR YEARS MANUFACTURING AND service industries have increased their levels of productivity, quality, and profitability by applying LEAN principles.

Currently, the construction industry is going through a revolution due to the economic climate. Profit margins for all companies are being reduced to the point that the risk/reward ratio has no relationship to the project cost.

In order to make this kind of progress, organizations have to start understanding the Lean Principles and apply them to their businesses. The mechanics of lean systems (kaizen, pull systems, flexible cells, and so on) are simple in concept and thus appear easy to implement. Yet, few organizations are able to implement “lean� the first time they try.

10 and 20 course curriculum starts in July and continues through May 2013.

For more information, visit: www.abc-alabama.org/lean.aspx

2

THE MENTORING ADVANCEMENT Program is designed for emerging, disadvantaged, and small businesses needing professional guidance as it relates to business development, financials, legal and contractual issues, human resources, marketing and many other important topics that will help you operate and grow a successful business.

This class has 6 modules and 10 classes that begin in July and continue through Feb. 2013. The Modules were developed through a national group of contractors and each module is being taught by local members: Reassessing the Business: Instructors- BL Harbert , Robins & Morton, Superior Mechanical, Sellers Richardson Holman & West, Managing Business Operations: Instructors- Hoar Construction, Brasfield & Gorrie Legal/ Contractual Issues/ Safety Instructors- Wallace Jordan Ratliff & Brandt, Bradley Arant Boult Cummings, M J Harris Managing Human Resources: Instructors- Caddell Construction, Baker Donelson Bearman Caldwell & Berkowitz Marketing: Instructors- BL Harbert Building the Business Team: Instructors- BL Harbert, McGriff Seibels & Williams For more information, visit: www.abc-alabama.org/map.aspx

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3

RESTRUCTURED FOR 2012 BY partnering with Fails management Institute (FMI), a national management consulting firm for the engineering and construction industry, this course is designed for future leaders to further develop their leadership abilities and communication skills. The program consists of 4 full day classes beginning mid August and ending late September.

Each class will also include a featured speaker discussing the following topics: Leading in Uncertainty Deepa Bhate, Building and Earth Science, Inc Your Leadership Style Chris Kramer, Brasfield & Gorrie Great Leaders: Personal and Professional Danny Rodgers, Dunn Investment Company Ethics and Leadership Craig Beatty, CS Beatty Construction Inc. For more information, visit: www.abc-alabama.org/flic.aspx

Continuous Improvement Capstone College of Nursing Tuscaloosa, AL Credit: Mason Fischer Photography

The one thing that is constant is change.

Staying on top of the changes that shape our industry is a promise Griffin Electric makes to our clients. We are always searching for innovative ways to bring the most value to the projects we are awarded.

With a focus on efficiency, our team is committed to continuous improvement and change for the better.

Corporate Headquarters: 116 Hopping Brook Road Holliston, MA 01746 (508) 429-8830 Regional Offices: Charlotte, NC Raleigh, NC Duluth, GA Pelham, AL

www.waynejgriffinelectric.com

Alabama Electrical Contractors Board

AECB

Have you received your state electrical contractors or journeyman electricians license from the Board through Local Examination Waiver Opportunity?

If not, you need to submit your application before the August 31, 2012 deadline. You can obtain applications and information on the Board’s web site at www.aecb.alabama.gov or contact the Board Office at 334.420.7232

2777 Zelda Road | Montgomery, AL 36106

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News & Notes

ABC of Alabama’s

2013 Proposed Legislative Goals AT ABC OF ALABAMA’S ANNUAL convention, Tim Hightower presented the association’s legislative agenda for 2013. “Our association has really grown our political presence in Montgomery and we wanted to get our goals for next year endorsed by the Board of Directors as soon as possible.” The Board of Directors did endorse the goals listed below.

The association has already held 2 meetings to discuss sponsors and strategy.

Hightower added,

“These goals represent game changers for our industry. As an association it is our responsibility as well as desire, to look at ways to spur economic development, increase profit for our industry or decrease cost. These bills do that.”

We Recommend: To ensure you are included in updates regarding these bills as well as included in our Capitol Reports and legislative tweets, email jenny@abc-alabama.org.

SALES & USE TAX Reinstate the 2004 process regarding sales and use tax exemption on tax exempt State projects. ABC has met with the Attorney General and the Revenue commissioner and we feel confident this can finally pass in 2013.

MECHANICS LIEN REVISIONS ABC of Alabama has researched 14 States Mechanics Lien bills and we are now looking at Florida’s as our model. We will task force this subject over the summer and hope to have a bill ready by November.

ANTI-PLA ABC hopes to secure Anti-PLA legislation that Senator Blackwell introduced for us this year.

ALTERNATE As an alternate, the industry is still looking at various delivery methods on public works. We still feel when implemented correctly and legislated properly, tax payer’s dollars can be saved by allowing measures like CM at Risk and Design Build in the public sector. ABC of Alabama will continue to explore allowing processes on public works.

JUN/JUN 2012

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Faces

Going Places

Jim Rein

Mr.

OF B.L. HARBERT INTERNATIONAL Alabama Construction News Cornerstone Award winner for 2012 is Jim Rein of B.L. Harbert International, LLC, a highly respected construction professional with worldwide connections.

P

resident and COO of B.L. Harbert International, Jim Rein, is someone totally dedicated to the success of the company. This dedication drives his belief in teamwork, which is a defining characteristic of his strong leadership style and his approach to company operations.

BLHI founder, CEO and Board Chairman Billy L. Harbert, Jr. says of Jim: “He is a team builder above all, whether it is as a father, soccer coach, or business leader. I have never seen Jim waver in his fundamentals in 30 years, no matter the situation.

His fundamentals are very sound; they are in our company’s list of values and constitution.

In 1979 Jim came to what was then Harbert Construction, as a protégé of company founder Ed Dixon. He initially joined the Harbert office in Quito, Ecuador, then came to Birmingham where he quickly and quite literally helped shape the Birmingham skyline and the surrounding landscape. Jim was the project manager for the Riverchase Galleria—something many thought Harbert wasn’t capable of—which at the time was one of the largest mall construction projects in the nation. Jim simultaneously led the participation of Harbert Construction in project teams that built the SouthTrust Tower and the AmSouth Harbert Building, structures that were at the time the tallest buildings in Alabama. In 1986, Jim became the Vice President of the Commercial Construction Group of Harbert Construction. In 1992, Jim formed the US Operations Group of Bill Harbert International Construction, Inc. and in the years since, Jim has continued to lead the company to what is now B.L. Harbert International, LLC. BLHI is currently the Top Design-Builder in the State of Alabama; #14 International Contractor in the nation, and Top International Contractor in the Southeast; #20 Green Contractor in the nation; Top Green Contractor in the State of Alabama;

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“He is a team builder above all, whether it is as a father, soccer coach, or business leader.” #3 Green Government Offices Contractor; and #67 in the Top 400 Contractors in the nation—all according to ENR Magazine.

This quiet and steady leader came to the US from his native South Africa under the wing of Ed Dixon, Bill Harbert, Sr., and John Harbert. His studies at academic institutions in South Africa, England and at Stanford University in California, plus his construction experience in many different countries, gave him

the background to develop his understanding of how to be successful not only in the US but also in the overseas construction markets. This, when added to his abiding belief in the team concept, has resulted in a large and successful BLHI presence both in the US and abroad. His skills as an engineer, a builder and a trusted leader have helped him become a recognized leader in the field of construction.