ISSUE 2 2019
MICHIGAN
A PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
MIOSHA and Associated Builders and Contractors of Michigan Renew Alliance to Protect Workers
Elevating and Exceeding Expectations Building West Michigan | Constructing Careers | Developing a Future for the Next Generation
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Electric
Caro, MI
Recycled Concrete & Asphalt Products
ELECTRICAL CONTRACTORS ENERGY SAVING SPECIALISTS
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COMMERCIAL • INDUSTRIAL • AGRICULTURAL • PETROLEUM WIRING • RESIDENTIAL CONTROL WIRING • DESIGN - BUILD • EMERGENCY POWER SYSTEMS CABELING/NETWORKING • EMERGENCY SERVICES • CAR WASH SYSTEMS
Bill
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Scott (989) 551-5506 / scott@ggemi.com
• Hogan Road, Fenton
Operated by: DCF Recycling, Inc.
PO Box 1357 • Brighton MI 48116 • Phone 810 - 522 - 6474 • Fax 810 - 522 - 6499
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
CONTENTS ISSUE 2 2019
FEATURE 8
MIOSHA and Associated Builders and Contractors of Michigan Renew Alliance to Protect Workers
MEMBER SERVICES
8
13 Michigan Construction Leadership Summit
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30
ABC Fund Members Have Lower Claim Costs
CHAPTER NEWS 22
ABC Southeastern Michigan Chapter Annual Excellence in Construction (EIC) Awards
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Women Build Week
26
West Michigan Career Quest
WORKFORCE DEVELOPMENT 36
Changes in the Industry: Subcontractor Alert
GOVERNMENT AFFAIRS 6
Legislative Update
32
Get to Know Your Lawmaker
DEPARTMENTS
26
5
Executive Perspective by Jeff Wiggins
38
Advertiser Index
MICHIGAN MERIT • ISSUE 2 2019
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CONSTRUCTION TOOL & SUPPLY CO.
Your company’s success protected by business insurance.
Specialists in concrete anchors & spring steel clips Bill Parkhill Field Representative
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989.687.4042
geinsulationco.com
965 E. Saginaw, Sanford, Michigan 48657
Environmental & Medical Gas Services Michigan LLC
Allied Insurance Managers, Inc. 1055 South Blvd E. Suite #110 Rochester Hills, MI 48307 248.853.0930 Alliedinsmgr.com
5325-B Six Mile Ct., NW • Comstock Park, MI 49321
ALLIED INSURANCE MANAGERS, INC.
Mark Stone, Sales 616-785-4188 • Cell 616-262-0124 • mstone@emgsm.com www.emgsm.com
CONSTRUCTION INC. Licensed and Insured / Residential • Commercial fairandsquareconstructioninc@hotmail.com
Colville Electric Co. LLC Licensed and Insured Residential, Commercial, and Industrial Violations Corrected
Dave Colville 586.774.9110 Fax# 586.774.3897 Dave@ColvilleElectric.com
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TAKES THE PROPER PLAN AND TOOLS, ALONG WITH EXPERIENCED PROFESSIONALS TO PIECE IT ALL TOGETHER Accounting and Audit l Tax l IT Consulting l Succession Plans Business Valuations l Cost Reduction Programs l Cost Segregation Studies Retirement Plan Consulting l Fraud Prevention and Detection l Entity Selections l Strategic Plans l Bonding/Surety Assistance
23416 Gratiot Ave. Eastpointe, MI 48021
D.C. Byers Company/Grand Rapids, Inc.
Building Restoration and Waterproofing Contractors Specialists in concrete Doug Lectka and masonry, restoration, SINCE 1903 President/Owner waterproofing, and epoxy flooring.
Office: 616-538-7300 • Cell: 616-299-1960 • doug@dcbyers.com 5946 CLAY AVE. SW • GRAND RAPIDS, MI 49548
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EXECUTIVE PERSPECTIVE
W
hen the year began, there were many questions being asked regarding what kind of government the citizens of the state of Michigan elected in November of 2018. In this edition of the Merit Magazine, we’ll examine some of them.
JEFF WIGGINS State Director ABC of Michigan 2019 BOARD of DIRECTORS Corey Hannahs, Chair Consolidated Electrical Contractors Greater Michigan Chapter Robert Clancy, Vice Chair Robert Clancy Contracting, Inc. Southeastern Michigan Chapter Mike Houseman, Immediate Past Chair Wolverine Building Group Western Michigan Chapter Ken Misiewicz, Secretary/Treasurer Pleune Service Company Greater Michigan Chapter Chris Beckering Pioneer Construction Western Michigan Chapter Jim Cripps Cripps Fontaine Excavating, Inc. Western Michigan Chapter Perry Merlo Merlo Contracting Southeastern Michigan Chapter Cort Niemi Lake Agency, Inc. Southeastern Michigan Chapter Brian Stadler Wolgast Corporation Greater Michigan Chapter Ed Tanzini Tancor Corporation Greater Michigan Chapter Tom Vitale Smith Haughey Rice & Roegge Western Michigan Chapter
With Republican majorities in the House of Representatives and the Senate decreasing, statewide Democratic candidates being elected to the positions of Governor, Attorney General, and Secretary of State, and the idea of split government swirling about, predicting which issues would be addressed with viable solutions and which would die a slow, painful, partisan death was an impossible task. With six full months in the rear-view mirror, some of the questions have received resounding answers, like auto insurance and civil asset forfeiture, while others have only created much larger question marks, like road funding and the state budget. There is one thing that it appears everyone can come together on and that is the need for more Michigan residents being made aware of the opportunities available in the skilled trades. One way ABC members are reaching out is by playing a major role in events like MICareerQuest 2019. This past spring, the ABC Western Michigan Chapter, as well as dozens of ABC members from across Southwest Michigan converged on DeVos Place in Grand Rapids to make a play for the best and brightest as hundreds of students made the exhibits hosted by companies in the fields of Construction, Healthcare, Information Technology and Manufacturing. Another clear point of agreement on all sides of all discussions is the notion that safety must come first. ABC members and their employees put in the hard work day in and day out to provide for their families and build our communities. However, without prioritizing safety, employees, their livelihoods, and the well-being of their families can be placed in jeopardy. That is why the ABC chapters throughout Michigan, as well as the Michigan Occupational Health and Safety Administration (MIOSHA) came together recently to renew their safety alliance, pledging to continue the commitment to worker training and safety. Emphasizing the importance of workplace safety must continue, as the number one goal must always be to ensure that the working men and women of the merit shop make it home safely to their families at the end of the day. We hope you enjoy this edition of the Merit Magazine, as we focus on the important things transpiring in the merit shop across our great state. As always, to get weekly updates, be sure to subscribed to the ABC of Michigan podcast, which brings you the latest news and interviews with folks throughout the industry and our government. Yours for the merit shop,
Andy Weisbrodt Bouma Construction Western Michigan Chapter
MICHIGAN MERIT • ISSUE 2 2019
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GOVERNMENT AFFAIRS
LEGISLATIVE Update
T
he 100th Legislature began its session in January of 2019 with several important items on the agenda, after voters made their demands loud and clear during the arduous campaign of 2018. Fixing the roads and reforming auto no fault insurance needed to be at the top of the agenda, as candidates on both sides of the aisle in races from Governor all the way down to township trustee heard it from their (future) constituents. You can be certain about very few things in government/politics; but one thing was certain this past spring: the newly elected officials listened. Within the first half of the first year of this legislative session, Governor Gretchen Whitmer signed into law House Bill 4001 and Senate Bill 1, with each bill traditionally being used as the
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vehicle for some of each chamber’s top legislative priorities. House Bill 4001 was part of a legislative package that finally reformed Michigan’s civil asset forfeiture laws, providing more private property rights to Michigan citizens. Senate Bill 1 was signed into law in grandiose fashion on the porch of the Grand Hotel on Mackinac Island after Republican leaders and Gov. Whitmer made significant reforms to Michigan’s Auto No-Fault law, achieving compromise on an issue many thought could not be reached. Make no mistake about it. Passing no-fault auto insurance reform was an arduous task. The Michigan House and Senate initially had separate bills, and the chambers had to reconcile before the bill could reach the Governor’s desk. After signing the bill Gov. Whitmer stated, “This historic
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
deal shows that, when we put party aside, we can find common ground.” However, the ground was far from common during the bill drafting and earlier voting. Earlier in May, for the first time in decades the Michigan House of Representatives and the Michigan Senate were able to pass different versions of what reform would look like to the current law. However, Governor Whitmer wasn’t willing to jump on board with either the House or Senate versions, threatening to veto and indicating that more protections needed to be put in place restricting the use of non-driving elements in the determination in the cost of coverage. At the end of the day, a compromise was reached that included a little bit of what everyone wanted. One of the most significant changes in the new law is the addition of multiple Personal Injury Protection options or PIP. Prior to this legislation Michigan residents were required to pay for unlimited PIP, making it the only state in the country that required participation in this unlimited plan. Now, starting on July 1, 2020, Michigan residents will have five PIP choices: opting out, $50,000, $250,000, $500,000, and unlimited coverage options. The opting out and $50,000 options are only available for Medicaid enrollees. In addition to offering more coverage options, the new law also mandates that insurers reduce their PIP rates by 10-100% depending on the plan motorists choose. For example, the unlimited plan mandates a 10%
reduction while the $250,000 plan mandates a 35% reduction.
miums are estimated to decrease by 23%.
The enacted statute also will reduce Michigan motorists’ annual fee to the Michigan Catastrophic Claims Association (MCCA). According to their website, the MCCA is “a private non-profit unincorporated association, created by the state Legislature in 1978.” The purpose of the entity is to reimburse “auto no-fault insurance companies for each Personal Injury Protection (PIP) medical claim paid in excess of a set amount.” The insurance company covers the cost of the claim and is then reimbursed by the MCCA for anything above the set amount, which is currently set at just above $550,000.
On the government side of things, state expenditures are estimated to increase due to increased Medicaid costs, as well as a decline in tax revenue as insurance companies will likely have less taxable income.
Currently, the MCCA charges insurers $192 per policy annually; however, with the passing of this reform legislation, insurance companies will only be required to pay $43 per policy annually to the MCCA. Many remember that this was a major point of contention as the increase in this fee served as an annual reminder that Michigan auto insurance costs were the highest in the country. Another change made in the bill were new limits on what personal information insurers could use to give rates or approve coverage. The enacted statute now bans insurers from using sex, marriage, location, home insurance, education, occupation, or credit score to set an individual’s coverage options or rates. According to the non-partisan House Fiscal Agency, insurance pre-
Overall, the savings realized from this bill will vary from resident to resident. From the policy cost perspective, every motorist should save money on their PIP coverage, and some will save more than others depending on the plan they select. Despite what appears to be guaranteed savings for motorists, there could be a catch. Some believe that a decrease in PIP prices may coincide with result in higher hospital bills or higher health insurance costs. Not much can be certain, of course, until the new reforms begin to be implemented. The new law is scheduled to take effect July 1, 2020. However, the honeymoon may be short lived as two other significant pieces of legislation appear to have less room for compromise, with ideological differences serving as stark contrasts in the discussions surrounding an additional $2.1 billion in road funding and the 2019/2020 state budget. As Governor Whitmer continues to promote her $.45 per gallon tax hike and Republican leaders appearing reluctant to even entertain another increase after they gritted through a vote in 2015, many are left wondering what “fixing the damn roads” is going to look like. Or if it happens at all.MM
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Great Lakes Industrial Supply 6612 N. Telegraph Rd. Dearborn Heights, MI 48127
Phone: (313) 274-9800 Fax: (313) 274-7849
MICHIGAN MERIT • ISSUE 2 2019
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FEATURE
From L to R: President & CEO, Jason Johnson, ABC Greater Michigan Chapter Board Chair, Keith Ledbetter, ABC Southeastern Michigan Chapter President & CEO, Robert Clancy, ABC Southeastern Michigan Chapter Board Chair, and William Lykes, MIOSHA
MIOSHA and Associated Builders and Contractors of Michigan Renew Alliance to Protect Workers Extends MIOSHA Education, Training and Resources to ABC Members
O
n May 29, Associated Builders and Contractors, Inc. of Michigan, Greater, Southeastern & Western Michigan Chapters, and the Michigan Occupational Safety and Health Administration (MIOSHA) renewed their formal alliance at a recent signing ceremony to provide ABC in Michigan members and others with safety and health information, guidance, and access to training resources. “We are pleased to renew our alliance with ABC of Michigan to continue protecting our working men and women,” said MIOSHA Director Bart Pickelman. “This alliance offers great opportunities to provide needed training and help create safer and healthier workplaces throughout Michigan.” Created in order to increase and promote on the job safety and health to ABC in Michigan membership by creating better communication between ABC in Michigan members and MIOSHA, the greatest value that the alliance provides is the outreach and training that is the foundation of the ABC activities. Training goals set for the alliance primarily address “focus four” issues: • fall hazards • electrical hazards • struck by hazards • caught between/crushed by hazards In developing this alliance, MIOSHA and ABC in Michigan recognize that MIOSHA’s Consultation Education and Training (CET) Division is an integral part of this effort. Total member contact outreach capability is approximately 20,000 people.
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
SIGNING THE ALLIANCE WERE: • Barton (Bart) Pickelman, MIOSHA Director • Nella Davis-Ray, MIOSHA CET Division Director • Jeff Wiggins, ABC of Michigan State Director • Corey Hannahs, ABC of Michigan Chairman • Jimmy Greene, ABC Greater Michigan Chapter President/CEO • Steve Longstreet, ABC Western Michigan Chapter Board Chair • Norm Brady, ABC Western Michigan President/CEO • Jason Johnson, ABC Greater Michigan Chapter Board Chair • Keith Ledbetter, ABC Southern Michigan Chapter President/CEO • Robert Clancy, ABC Southeastern Michigan Chapter Board Chair Alliances enable organizations committed to workplace safety and health to collaborate with MIOSHA to prevent workplace injuries and illnesses. Alliances are open to all groups, including trade or professional associations, businesses, labor organizations, educational institutions, and government agencies. There are many benefits to participating in an alliance with MIOSHA. Through this program, organizations will: • Build trusting, cooperative relationships • Network with others committed to workplace safety and health • Exchange information about best practices • Leverage resources to maximize worker safety and health protection “The MIOSHA program is dedicated to working with employers, both public and private sector — to implement innovative ways to enhance workplace safety and
health,” said Pickelman. “Through alliances, MIOSHA can offer employers a voluntary, cooperative relationship to eliminate serious hazards and achieve a high level of safety and health.” The MIOSHA program is part of the Michigan Department of Licensing and Regulatory Affairs (LARA). ABC is a statewide trade association dedicated to providing Michigan with high-quality, affordable, safe and ontime construction. A leading construction industry voice with state government, ABC provides many member services including legislative advocacy, networking opportunities, member benefits, legal updates, business development and educational opportunities. ABC of Michigan is made up of three chapters: Greater Michigan Chapter, Southeastern Michigan Chapter, and Western Michigan Chapter.MM MICHIGAN MERIT • ISSUE 2 2019
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HICKEY ELECTRIC INC.
248-268-4714 Office: (517) 852-0925
Email: Estimates@IndependenceCommercial.com
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PODCAST
Don’t forget to check out the new ABC of Michigan Podcast each week! Featuring interviews with lawmakers and members, and all the news from Lansing.
Find the ABC of Michigan Podcast on multiple platforms! On your computer go to: ABCMI.COM/NEWS/PODCAST On iTunes search: ABC of Michigan On Spotify search: ABC of Michigan Podcast On Soundcloud search: ABC of Michigan Podcast
MICHIGAN MERIT • ISSUE 2 2019
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Power Lighting & Technical Services Angel Paris, President Detroit Headquarters Business (DHB), Detroit Small Business (DSB) Minority-Owned Businesses Enterprises (MBE), Woman-Owned Businesses Enterprise (WBE)
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MICHIGAN MERIT • ISSUE 2 2019
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CHAPTER NEWS
ABC SOUTHEASTERN MICHIGAN CHAPTER
CELEBRATES EXCELLENCE IN CONSTRUCTION AWARDS
T
his year, the ABC Southeastern Michigan Chapter hosted their first annual Excellence in Construction (EIC) awards. The EIC awards night celebrated and honored some of the chapter’s most prominent members for their innovative and highquality construction projects. The ceremony was held on April 17th at Club Venetian banquet and conference center. Although this year was the first year that the ABC Southeastern Michigan Chapter hosted an EIC award night, ABC National has held an Excellence in Construction competition for the last 30 years; the national event recognizes outstanding construction projects across the country. In the last three decades, ABC’s National Excellence in Construction program has become the premier competition within the construction industry. The ABC Southeastern Michigan Chapter EIC awards can springboard Michigan builders and contractors into the national spotlight. Companies who received first or second place in this year’s Southeastern Michigan Excellence in Construction awards are eligible to enter the 2019 National Excellence in Construction awards which will be presented in Nashville at the ABC Convention March 23-27, 2020. During the Southeastern Michigan EIC awards celebration, four awards were handed out in four different categories: SubContractor of the Year, General Contractor of the Year, Roofer or Carpenter of the Year, and Emerging Professional of the Year. The recipients were as follows: Altech Doors took home Sub-Contractor of the year honors. The Summit Company was awarded General Contractor of the Year. Molnar Roofing received the Roofing/Carpentry of the Year award. Steve Sattler of
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
Clancy Contracting collected Emerging Professional of the Year honors. At the EIC event, ABC Southeastern Michigan President, Keith Ledbetter emphasized that the groups and individuals receiving the awards represented a small portion of the members who make ABC great. “I am proud to represent this association and the phenomenal men and women who make up our membership,” Ledbetter stated. “Tonight, we recognize just a few of the superb companies who have completed projects this year that their colleagues deem to be excellent examples of quality, safe and timely craftsmanship and a cut above their merit shop peers. They have dedicated themselves to completing projects on time and budget without sacrificing any safety or quality — for this we honor them tonight.” MM
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MICHIGAN MERIT • ISSUE 2 2019
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CHAPTER NEWS WORKFORCE DEVELOPMENT
WOMEN
BUILD WEEK
T
hin stakes of clean fresh wood rise from the ground to stand eight feet tall; the planks are held together across the top by thick wooden beams. This eight by twelve-foot structure will form a portion of the wall in this soon to be house. This home is unique though because it was built mostly by volunteers in the hopes of giving a struggling family a roof over their heads.
Since 1988, Midland County Habitat for Humanity (MCHFH) has been providing families in need with adequate and affordable housing. From May 6th – May 10th, MCHFH hosted Women Build Week which encourages more women volunteers to join Habitat for Humanity’s housing construction projects. According to MCHFH’s website, women represent around only fifteen percent of Habitat for Humanity volunteers; Women Build Week seeks to catalyze greater engagement from women. “Habitat believes every child, person and family deserves a safe and stable home,” Amanda King, Impact Manager at MCHFH, emphasized. “For the Women Build event, we are calling on women…to raise a hammer and share our message to spotlight this important issue.” Leading up to Women Build Week, MCHFH offered participants the option to attend one of two tool clinics on April 17th and April 25th. These clinics were designed to teach participants how to use common power tools and remain safe on the jobsite. The tool clinic offerings demonstrate MCHFH is interested in helping women gain applicable skills not just completing housing projects. 24
Women Build Week involves women working under the guidance of construction professionals. The valuable skills that women gain during this week improve strength, stability, and independence. ABC Greater Michigan Chapter (GMC) worked with MCHFH and Greater Michigan Construction Academy (GMCA) to support Women Build Week. The Academy students began construction of the house, and women volunteers finished the project from GMCA’s framework. Stephanie Davis, Vice President of ABC GMC, described the process. “[Greater Michigan Construction Academy] students build a house, on our site, from beams up as part of their hands-on curriculum. Once the house is roughed in up to the shingles, it is moved…to the lot in which Habitat has purchased. Women Build Week is held shortly after the house is moved. The women who attend do everything from siding, window/door installation, floor install, shed building and roofing.”
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
During the week, the women volunteers completed the third house that GMCA built at ABC’s facility. ABC has plans to build five more habitat for humanity homes at their facility soon too. Seventy-five percent of ABC GMC’s staff are women, and according to Davis Women Build Week was a great opportunity for her team to give back. In a growing and increasingly diverse economy, events like Women Build Week are important to emphasize that careers stereotypically attributed to men aren’t as exclusive as they appear. According to the National Association of Women in Construction, in 2016 women composed nine percent of the construction workforce. “It is important for communities to see these jobs in the trades are not just for men,” Davis explained. “Women are plenty capable and willing to give back as well.” The construction industry often struggles to find labor to fill their projects and increasing the labor pool by encouraging more women to consider careers in con-
struction could help to shrink the labor gaps many construction firms face. Events like these transcend basic business and allow an opportunity for charitable generosity. Through their dual partnership ABC can support both local citizens in need and young construction students. “It is important for all of us to give back to the communities that provide for us,” Davis commented. “This is such a great opportunity for our students as well; this partnership is a win-win for all involved.” According to Midland’s local ABC news source, an estimated 450 women worked on the house under construction during Women Build Week. The project was to help, local resident, Pat Koehler build her dream home one nail at a time. Many of these volunteers were annual participants. “Women Build is a very popular event, many volunteers have been coming back for several years,” King said. “We had nothing but positive feedback on the event and are working to expand the event.” MM
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MICHIGAN MERIT • ISSUE 2 2019
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CHAPTER NEWS
WEST MICHIGAN CAREER QUEST
W
hat do you want to be when you grow up? On April 25, 2019, West Michigan Works! helped West Michigan middle and high school students answer that question when they hosted their annual student job exploration event, at West Michigan’s MiCareerQuest, in Grand Rapids, Michigan. During MiCareerQuest, students explored career options in four industries: Advanced Manufacturing, Construction, Health Sciences, and Information Technology (IT).
These four industries are expected to undergo rapid growth and job opportunity soon. In construction alone, it is estimated, according to the ABC Western Michigan Chapter, that 1.1 million workers will be needed in the next decade to meet forecasted construction demand. At MiCareerQuest, employers pre-
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sented interactive exhibits to engage students and ignite curiosity for the four industries represented. Engaging student interest now may be the key to supplying the future labor force.
interest and involvement highlights the large job availability in manufacturing, construction, health care, and IT and the large interest students have for those industries.
In the past, MiCareerQuest exhibits have ranged from a trauma care intervention, replicating a situation where a paramedic had to stop someone’s bleeding quickly, to a mini home building construction site where students used drills and screws to build doorframes. These hands-on interactions allow employers to expose younger minds to potential career opportunities.
Members of ABC’s Western Michigan Chapter were heavily involved in MiCareerQuest. Twelve ABC member employers participated in the day’s events. ABC members composed over seventy percent of the construction industry represented at MiCareerQuest. Of the seventeen construction employers in attendance, twelve were ABC members.
This April was the fourth annual MiCareerQuest. Over 9000 students from Allegan, Barry, Ionia, Kent, Montcalm, Muskegon, and Ottawa counties attended the event. MiCareerQuest was supported by over 100 employers and around 2000 volunteers. The day’s high
The prominence of ABC members emphasizes how important events like these are for the construction industry. The high ratio of participation by members of the construction and building industry shows the value placed on events like MiCareerQuest.
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
At MiCareerQuest, the construction industry’s representatives ranged from large construction project companies like Rockford Construction to flooring contractors like Welch Tile. The exhibits put on by the construction industry spanned a wide variety of skills too: welding, plumbing, and carpentry to name a few. According the Bureau of Labor Statistics (BLS), employment of construction laborers and helpers is expected to increase twelve percent by 2026 which is incredibly fast compared to the average occupational growth rate. The BLS also measured the unemployment rate for construction at 4.7% in April compared to the current overall unemployment rate of 3.6%. Construction employee wages and salaries have the potential to skyrocket if a labor shortage occurs in the market. This is because if there are less people to employ, then employers will have to compete for labor by the labor price i.e. the wage. This is good news for construction industry employees, but potentially troubling news for construction employers. If the gap between construction labor demanded and construction
labor supplied continues to grow, then events like MiCareerQuest will be essential for construction and building companies to advertise their short-term high wages to potential employees in order to raise the labor force and bring future wages and costs down. Introducing younger people to opportunities in the construction industry will help ensure that construction labor supply grows parallel to construction labor demand and will help close the gap between construction unemployment and total economy unemployment. Partner universities also attended MiCareerQuest and acted as a resource for students to explain pathways for training and career specific education. Sometimes the universities will also feature exhibits to interact with the students. At MiCareerQuest, educators and employers worked together on behalf of the students. For students, the event itself kicked off at 8:00 am and ran until 1:45 pm, but for employers and organizers, event planning was almost a year long process, and student registration for the 2020 MiCareerQuest is already open. MM
ABC ME MBE RS IN VOL VED IN MICARE E RQ U ES T Triangle Asscociates Allied Mechanical Services Vos Glass Ritesma Associates Zeeland Lumber and Supply Rockford Construction Eikenhout Pioneer Construction Feyen Zylstra Welch Tile Elzinga and Volkers Vanguard Fire and Security Systems
MICHIGAN MERIT • ISSUE 2 2019
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MICHIGAN MERIT • ISSUE 2 2019
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MEMBER SERVICES
ABC FUND MEMBERS HAVE LOWER CLAIM COSTS
Are members of the ABC Workers’ Compensation Fund safer than the rest of the construction industry? That is what the numbers suggest! A recent study of five main construction-related workers’ compensation class codes compared the performance of members of the ABC Fund with industry peers with the same main class codes. ABC FUND MEMBER CLAIM COSTS WERE 65% LOWER THAN THE INDUSTRY AS A WHOLE. The study examined claim costs for the construction industry in Michigan over the last five years. Some of the largest contractor job categories were analyzed including masonry, electrical, plumbing, carpentry, HVAC, and excavation. Data from the ABC Fund was compared to that of the insurance industry ABC FUND VS. CAOM as a whole as reported by the Compensation Adviso2015 -2018 ry Organization of Michigan. The CAOM serves as Class ABC CAOM ABC the data collection center for all workers’ compensaC ode D escription L oss R ate L oss Rate Advantage tion insurance companies in the state. Insurers submit payroll and loss data for purposes of trending the 5022 MASONRY $7.54 $5.28 -30% cost of claims. Results were that five out of six classi5183 PLUMBING $1.04 $2.35 127% fications dramatically outperformed the peer group. The lower costs were consistent regardless of type of work performed according to Tim Hanna, RPS Regency who serves as the Fund Administrator of the ABC Fund. “This is not a surprise as we know ABC Fund members take safety very seriously.” Hanna believes such results are indicative of the efforts to instill that safety remain the number one priority through ongoing education and training of ABC Fund members.
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156%
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Around since 1995, the ABC Fund is a member owned self-insured workers’ compensation group. The program is structured to offer its members the lowest net cost available in the marketplace by returning premium not needed for claims. The Fund has returned over $62 million dollars of premium back to its members. Over the last five years the average return is 53% of premium paid in. For an employer who pays $100,000 in premium that translates into a $53,000 savings! So how are ABC Fund members accomplishing these great results? By developing a culture throughout their organization where all employees understand safety is a priority. It starts with a long-term com30
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
mitment from management, according to Hanna. The ABC Fund supports that commitment by offering a wide range of workforce training resources. The Fund puts loss control specialists in the field that can work with members to mitigate risk. Monthly safety newsletters are posted on the Fund website by York Risk Services. An online safety center includes a comprehensive human resource library. ABC National also offers and promotes the STEP program which helps a contractor benchmark their safety performance against best practices.
In addition, ABC of Michigan has renewed their alliance with MIOSHA to push outreach and training to members. The MIOSHA CET Division is an integral part of this effort by pushing their “focus four” issues — fall hazards — electrical hazards — struck by hazards — crushed by hazards. “All in all safety pays”, says Hanna. “Not only does it result in lower workers’ compensation costs but a more productive and safer workforce.” For more information about the ABC Fund and its safety resources visit www. ABCMIFund.org. MM
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MICHIGAN MERIT • ISSUE 2 2019
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GOVERNMENT AFFAIRS
Get to Know Your LAWMAKER
ARIC NESBITT
State Senator In 2010, Senator Nesbitt was elected to represent Van Buren County and part of Allegan County in the Michigan House of Representatives. He served three terms in the state House, achieving results for hardworking taxpayers by balancing budgets and reducing debt, lowering the tax burden, eliminating thousands of regulations, and defending our West Michigan values. Senator Nesbitt served as the House Majority Floor Leader and chair of the House Committee on Energy and Technology. He also served
as a member of Governor Rick Snyder’s cabinet, managing an agency that generates nearly $1 billion annually for public education. In 2018, Senator Nesbitt was elected to the state Senate to represent the people of Allegan and Van Buren Counties, along with Gaines Township and the city of Kentwood in Kent County. Senator Nesbitt currently serves as Senate President Pro Tempore and chairs the Senate Committee on Regulatory Reform, and the Licensing and Regulatory Affairs Appropriations subcommittee.
GET TO KNOW QUESTIONS DO YOU REMEMBER YOUR FIRST INTERACTION WITH ABC? WHAT IMPACT HAS IT HAD ON YOUR LEGISLATIVE EFFORT? ABC is like the Marines; the first ones in for freedom. I took three weeks of vacation to volunteer for now-Congressman Tim Walberg’s campaign as ABC helped him defeat an anti-merit shop Republican incumbent in the primary. ABC has stood with me strongly and consistently, and I appreciate ABC’s commitment to principle and those who support freedom. OF WHICH LEGISLATIVE EFFORT ARE YOU MOST PROUD? Right to Work was a hugely consequential victory for freedom and Michigan’s economic competitiveness. ABC’s strong leadership was instrumental in this big win for Michigan.
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
WHAT DO YOU BELIEVE IS THE SINGLE BIGGEST ISSUE FACING MICHIGAN NOW AND WHAT DO YOU THINK IS THE BEST SOLUTION TO THAT ISSUE? We need to lower auto insurance rates. Michigan’s rates are the highest in the nation, which harms our families, seniors, and small businesses. I introduced Senate Bill 1 to dramatically reduce rates and I hope lower rates will become a reality for the people of Michigan. HOW CAN ABC MEMBERS CONTINUE KEEPING LAWMAKERS UP TO DATE ON KEY ISSUES AND PRIORITIES FOR THEIR BUSINESS AND EMPLOYEES? Jeff Wiggins does a tremendous job fighting for ABC’s pro-freedom agenda and staying in touch with me and my office. He has carried on the cause effectively following the strong leadership of former President Chris Fisher. I appreciate the opportunities to meet with ABC members, to learn about their businesses and how we can continue fostering a climate for economic growth. MM
Sen. Nesbitt snaps a photo with ABC Member Chris Beckering of Pioneer Construction on a jobsite in West Michigan.
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MICHIGAN MERIT • ISSUE 2 2019
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GRAHAM FILLER
State Representative State Representative Graham Filler was first elected to serve the 93rd District in the Michigan House of Representatives in November 2018. The 93rd District encompasses Clinton County and portions of Gratiot County. Representative Filler serves as the chairman of the House Judiciary committee and is a member on the Energy, Health Policy, and Regulatory Reform committees. In 2011, Representative Filler was named an assistant
attorney general. He is active with the St. John’s Kiwanis Club 707, the SafeCenter organization, and Big Brothers Big Sisters and was named Kiwanian of the Year in 2014. He is also a member and supporter of the Farm Bureau, the NRA, and Right to Life of Clinton County and active in the Republican Party, serving as the treasurer for the Clinton County Republican Party.
GET TO KNOW QUESTIONS DO YOU REMEMBER YOUR FIRST INTERACTION WITH ABC? WHAT IMPACT HAS IT HAD ON YOUR LEGISLATIVE EFFORT? I met Greater Michigan Chapter President Jimmy Greene in 2014; he found out I was an AAG and promised to be a wealth of information as I went forward. He was friendly and open and informative. We have become friends and I trust him to give me a no BS look at the construction and trades field. OF WHICH LEGISLATIVE EFFORT ARE YOU MOST PROUD? The “Raise the Age” package is a fantastic piece of legislation. Criminally charging 17-year-olds as adults doesn’t make sense, I was proud to lead on the issue here in my Judiciary committee.
WHAT DO YOU BELIEVE IS THE SINGLE BIGGEST ISSUE FACING MICHIGAN NOW AND WHAT DO YOU THINK IS THE BEST SOLUTION TO THAT ISSUE? Auto no-fault reform is the single biggest issue facing Michigan; House Republicans led on this issue and the Governor signed it in May. These reforms are going to lower costs, give people options, and cut down on fraud. HOW CAN ABC MEMBERS CONTINUE KEEPING LAWMAKERS UP TO DATE ON KEY ISSUES AND PRIORITIES FOR THEIR BUSINESS AND EMPLOYEES? Subscribe to MIRS, do a legislative update, bring in a legislator to give info…We work on tremendously important issues in this state. Your members should be updated monthly! I would be happy to meet with ABC members to give them updates. MM
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INDUSTRIAL * COMMERCIAL RESIDENTIAL * GENERATORS * COMMUNICATIONS 3079 E COMMERCIAL DR P.O. BOX 2264 OFFICE: 989-835-2154 MIDLAND, MI 48641-2264 FAX: 989-835-2693 www.valleyelectricalmidland.com
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Rep. Graham Filler was sworn into office at the state Capitol Wednesday, January 9 to begin his first term as state representative. Justice Stephen Markman of the Michigan. Supreme Court performed the ceremony in the House chamber.
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5701 Safety Drive, Belmont, MI 49306 • Phone: 800-886-1614 • Fax: 616-784-1140 MICHIGAN MERIT • ISSUE 2 2019
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WORKFORCE DEVELOPMENT
CHANGES IN THE INDUSTRY: SUBCONTRACTOR ALERT
W
ith the road construction season well underway, the merit shop members across the state are keeping busy building the roads and bridges that serve as the backbone of our communities. As member companies continue to bid and win work, it is important to take note of a recent development that could have a significant impact on the industry and how they do business. Earlier this spring, several union-affiliated unionized road contractors across the state of Michigan entered into a new agreement with the International Union of Operating Engineers, Local 324. This new agreement, which took effect on April 1, 2019, includes many significant changes when compared to the prior governing contract. Specifically, there are new provisions ABC members may not be aware of that detail certain aspects regarding subcontractors, their employees, and their payment into union fringe benefit plans. In order for the union contractor to subcontract work under this new labor agreement, a subcontractor is required to agree to all the rates, terms and conditions, and fringe benefit contributions included in the agreement between the union and the contractors. This includes paying union scale wages and paying into the several union fringe benefit funds. This would be required regardless of whether the work was subject to the federal Davis-Bacon Act. For example, a Class I Operator under the agreement would receive the wage of $29.01 per hour, as well $28.40 in required non-wage contributions. This includes mandatory payment into the Operating Engineer’s Local 324 Pension Fund. These new requirements could mean that subcontractors will be required to pay double fringe benefits, as many already maintain their own health, retirement, and training plans for their employees. All of this while their employees, assuming their not
affiliated with the union, would receive no benefit from these union fringe funds. There are other concerns, as well. Subcontractors may also be subjected to the Agreements and Declarations of Trust for each of the various union funds involved. This will allow fund auditors access to the payrolls of subcontractors and related records for auditing purposes to confirm these additional fringe payments are being made. Other requirements subcontractors would be subjected to include, but are not limited to, complying with the practices of the local union hiring hall, allowing union business agents to access their job site, adhere to union rules regarding overtime and hours of work, and agree to allow the Building Trades Department of the AFL-CIO resolve jurisdictional disputes. Finally, the signatory contractors to this agreement are to be held liable for any subcontractor’s failure to comply with the requirements provided in the agreement, unless the contractors ensure the subcontractors are party to the union agreement. Language doing just that has the potential to find its way into boilerplate clauses, amendments, or supplements that many merit shop contractors had previously been party to. Signing such a document could result in recognizing the union and applying the agreement for all projects with covered work! Therefore, subcontractors are encouraged to carefully inspect all documents received from a contractor, especially if it is one of the several that are now subject to this new agreement. These changes are significant and could potentially alter the way merit shop contractors manage their businesses. We, at ABC of Michigan, felt it was important to ensure our members across the state were made aware of these recent, impactful developments in our industry. Should you have any questions regarding this brief analysis, please feel free to contact our office. Keep in mind that this explanation, as well as any communication you have with our office, should not be construed as legal or financial advice. It is provided for informational purposes only, and members should consult with qualified labor legal counsel or appropriate professional service providers for specific advice. MM
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Headquarters: (800) 322-0215 www.standardelectricco.com MICHIGAN MERIT • ISSUE 2 2019
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ISSUE 2 2019
MICHIGAN
ADVERTISER INDEX
A PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
CONTRIBUTORS
Accurate Construction Services, LLC........2
J & B Electric Inc...................................13
AIS Equipment.......................................31
Jackson Associates, Inc............................13
PUBLISHER Jeff Wiggins wiggins@abcmi.com
Allied Insurance Managers Inc..................4
Jackson Industrial Construction..............28
Andrews Hooper Pavlik, PLC...................4
JBS Contracting, Inc...............................31
Arrow Concrete Cutting...........................2
Jimco Fire Protection, Inc.........................7
MANAGING EDITOR Breanna Cope cope@abcmi.com
Attitude & Experience, Inc.......................2
K & H Concrete Cutting, Inc.................10
Brigade Fire Protection...........................35
K & S Plumbing Co., Inc.......................37
Burgess Concrete Construction Inc...........2
K-Value Insulation..................................29
GRAPHIC DESIGN Sally Bancroft Bancroft Graphics www.bancroftgraphics.com
C & M Contracting Inc..........................35
Kyle Barnhart Trucking, LLC..................37
Capital Steel & Builders Supply..............35
LaFontaine Automative Group................28
Century Flooring......................................2
Laux Construction..................................29
Cloverleaf Electric, LLC..........................10
Liquid Calcium Chloride Sales...............29
Colville Electric Co Llc.............................4
Loomis, Ewert, Parsley, Davis, Gotting, PC.........................................29
PRINTING Bradford Printing www.bradfordprinting.net ADVERTISING Strategic Value Media www.svmmedia.com Michigan Merit (ISSN# 19389051) is the official publication of Associated Builders and Contractors Inc. of Michigan (ABC of Michigan) and is published quarterly at 118 W. Ottawa Street Lansing, MI 48933, (517) 853-2545. Please direct all inquiries to the previous address. Articles written by outside authors do not necessarily reflect the views of Associated Builders and Contractors Inc. of Michigan. ABC of Michigan reserves the right to reject or edit all material submitted for publication. The appearance of an advertisement in Michigan Merit does not constitute endorsement of the advertiser, its products or services, nor do Michigan Merit or Associated Builders and Contractors Inc. of Michigan guarantee or warrant any claims or offers made by the advertisers. Permission to reprint in whole or in part is hereby granted, provided the following credit line is used: “Reprinted by permission from Michigan Merit, a publication of Associated Builders and Contractors Inc. of Michigan.”
Construction Tool & Supply.....................4 Constructive Sheet Metal, Inc...................2 Core & Main..........................................10 CSM Mechanical, LLC...........................29 D C Byers Co...........................................4 Desai/Nasr Consulting Engineers, Inc.......4 EMGS Michigan......................................4 Enterprise Fleet.......................................29 Exceptional Metals..................................36 Expert Heating & Cooling, Inc...............23 Fair and Square Construction, Inc............4 FCC Construction Inc............................23 FCCI Insurance Group ..........................31 Fire Pros, Inc...........................................10 Fisher Companies...................................29 Frazier Rentals Inc....................................4
M One Limited Inc................................29 Maltese Construction LLC.....................12 Mechanical Heat & Frost Insulation LLC.....................................23 Michigan Air Compressor Technologies..31 Mid-American Group.............................39 Midland Tool & Supply Co., Inc............12 Miller Johnson Attorneys........................21 Modern Concrete...................................35 Modern Roofing Inc...............................21 National Ladder & Scaffold Co..............28 Nugent Builders Inc................................20 Pamar Enterprises...................................21 Parrish Excavating Incorporated..............21 Performance Line Tool Center................21
G & G Electric.........................................2
Power Lighting & Technical Services Inc..........................................20
G E Insulation Co....................................4
Propane Services LLC.............................23
GBM Recycled Concrete, LLC.................2
R. Bruton Electric, LLC..........................21
Garber Chevrolet....................................28
Rapid Fire Protection Inc........................21
Great Lakes Industrial Supply Co., Inc..................................................7
RCI Electric............................................35
Guy Hurley, LLC......................................2 Hickey Electric, Inc................................10 HNI Risk Services of Michigan...............29 HNI Risk Services of Michigan...............20 Independence Commercial Construction, Inc.......................................................10 Iron Rose Custom Renovations Inc.........37
Reed Insurance Agency...........................28 Robert Clancy Contracting, Inc..............39 Rock Products Co...................................29 Saginaw Bay Underwriters......................37 Schaefer & Bierlein.................................28 Scientific Brake & Equipment................28 Slipstream Inc.........................................25
Standard Electric Co...............................37
Valenti Trobec Chandler.........................10
Summit Electric Inc................................21
Vallen.....................................................33
Superior Asphalt.....................................37
Valley Electrical Contractors...................34
The Campbell Group..............................37
Van Dyken Mechanical Inc.....................12
Timpson Transport, Inc..........................29
Van Laan Concrete Construction............39
Tradesmen International.........................20
Vanguard Fire & Security Systems, Inc...23
TRP Crushed Aggregate.........................37
Walton Agency.......................................12
Universal Spiral Air.................................37
Wm. Molnar Roofing, Inc.......................34
Universal Wall Systems...........................25
Mid-American Group
Underground Utilities • Site Work • Trucking • Demolition
Robert Clancy 9342 Marine City Hwy. Casco Township, MI 48064 Ph: 586.725.8801 Fax: 586.725.8601 rclancy@robertclancycontracting.com
Keith Masserant President
8475 Port Sunlight Newport, MI 48166
S
C IN
96 E1
2
6875 Dutton Industrial Dr. SE Dutton, MI 49316
Bus: (734) 586-8868 Cell: (734) 516-4340
616-698-6397 Fax: 616-698-6317
E-mail: kmasserant@midamericangroup.com
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FIND AND DO BUSINESS WITH OTHER ABC MEMBERS. FindContractors.com lets you search for members by name, chapter, location, sales volume or type of construction, plus it’s easy to find members that participate in STEP, have federal designations and have signed the Drug- and Alcohol-Free Workplace Pledge. You can also update your membership information—and win more work!
Check out FindContractors.com today. MICHIGAN MERIT • ISSUE 2 2019
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PRESORTED STANDARD U.S. POSTAGE PAID LANSING, MI PERMIT NO. 75
ASSOCIATED BUILDERS & CONTRACTORS OF MICHIGAN 118 W. Ottawa Street Lansing, MI 48933 www.abcmi.com
$62 Million Returned to Members Since 1995
Your Self-Insured Workers’ Compensation Fund Returning Millions Back to Members $10 Million in 2019
Workers’ Compensation Insurance with a 40% Average Premium Return Safety & Loss Prevention Services | Competitive Up-Front Pricing
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