SUMMER 2008 Publication of ASSOCIATED Builders and Contractors of Michigan
TRANSFORMING THE GRAND RAPIDS SKYLINE
ABC OF MICHIGAN WOMEN MAKE THEIR MARK IN CONSTRUCTION also : ma j or abc business ta x v ictory www.abcmi.com
SUMMER 2008
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Contents
Vol.2, Issue 2
page 20
4 Executive Perspective
5 ABC of michigan women make their mark in construction ABC of Michigan interviews five women who are leaders in
the construction industry in the state about their success and struggles.
10 building “michigan hill” into a worldwide health center Known as “Michigan Hill” or “Medical Mile” it has become
one of the major health care developments in the nation, and ABC members are playing a big part in making it happen.
15 open season for unions With the construction season underway, unions are back on
the prowl attempting to unionize your employees. What can you do about it?
20 contractors summit highlights merit shop construction issues
Page 10
Three of the top labor attorneys in the state address ABC of Michigan members on important issues facing the construction industry in Michigan.
22 ABC of michigan’s competitive contractors summit Highlights of the first-ever Competitive Contractors Summit
A number of ABC member companies are playing a key role in the Michigan Street Development project.
on the cover:
held at the Eagle Eye Golf and Conference Facility.
27 advertisers index
When completed, RiverHouse will be the tallest building in downtown Grand Rapids.
SPOTLIGHT on MEMBERs
Recognition and Awards won by Michigan ABC members
Page 24
legislative update
ABC of Michigan Tax Cut Efforts Successful
Page 16
around the state
Chapter News
Page 18 www.abcmi.com
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EXECUTIVE PERSPECTIVE ASSOCIATED BUILDERS and CONTRACTORS OF MICHIGAN
BOARD OF DIRECTORS
Dan Kozakiewicz - Chairman Three Rivers Corporation - Saginaw Valley Chapter John Parish - Vice Chairman Parish Corporation - Central MI Chapter David Sheffield - Secretary/Treasurer Onslow-Sheffield, Inc. - Southeastern MI Chapter Jim Struble - Past Chairman RCI Electric - Southeastern MI Chapter Bill Buyak Capital Steel - Central MI Chapter Jim Cripps Cripps Fontaine Exc. - Western MI Chapter Richard Dvorak Answer Heating & Cooling - Saginaw Valley Chapter Gary Hengesbach Westphalia Builders - Central MI Chapter Rod Kloha Circle “K” Service, Inc. - Saginaw Valley Chapter Aileen Leipprandt Smith, Haughey, Rice & Roegge - Western MI Chapter Bill Molnar Wm. Molnar Roofing Co., - Southeastern MI Chapter Dave Mollitor Consolidated Electrical - Western MI Chapter Fred Pylman P & K Steel - Western MI Chapter Jack VandeGuchte Sobie Company, Inc. - Western MI Chapter Dan Welch Welch Tile & Marble - Western MI Chapter Michigan Merit Contributors
Publisher - Christopher Fisher Managing Editor - Mary Boardway, CAE Editing & Advertising: Public Relations Enterprises Printing: BRD Printing, Inc. Art Direction: Connection Graphics, LLC Michigan Merit (ISSN# 1938-9051) is the official publication of Associated Builders and Contractors Inc. of Michigan (ABC of Michigan) and is published quarterly at 120 N. Washington Sq, Suite 805, 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.”
4 i iMichigan MichiganMerit MeritSUMMER SUMMER 2008
ABC members have long advocated their right to hold onto the fruits of their labor, property and profits to the benefit of employer and employee alike. To this end, a major component of the free enterprise philosophy of the Merit Shop has always been the fundamental principle of being free from excessive and ultimately detrimental taxation. The recent experience of many ABC members with the newly enacted Michigan Business Tax (MBT) has left many construction businesses struggling in the face of an already weak economy. From one end of the state to another people from all sectors of the business community are expressing their frustration at a tax code that is inequitable, complicated and all too often excessive. During a one week period from June 4 – 11, ABC of Michigan conducted an online survey of member firms from all parts of the state and all segments of the construction industry. The results of this survey were quite telling. After breaking down and analyzing a representative share of ABC members, our data reports that 83 percent of respondents have a higher MBT liability compared to their old Single Business Tax liability. When members were given the option of submitting a comment about the new tax there was unanimous agreement that the new tax is detrimental for construction in Michigan. One response simply reads “HELP!” while another more detailed response reads: “This tax makes it very hard to stay in business and is seriously making our company consider relocating. We have been around for over 60 years and are sick and tired of seeing the state tax the heck out of the current residents and companies to make up for their ineptitude and inability to balance a budget or grasp the theory that if the tax base and population is declining then so should the budget. Make some cuts and reorganize just like small business has to do every time you raise our taxes.” As we began hearing more and more from our membership on the way this tax was treating their companies, ABC went to work on seeking relief for not only our membership but for the entire construction industry. In addition to adopting a unanimous board position to eliminate the surcharge WITHOUT any form of replacement, much work has been done in tandem to lessen the burden of the tax as long as it remains in place. One major victory that ABC won this summer has been to allow construction firms to deduct the direct purchase of materials from their business tax liability. This issue is substantial and for many firms as it can mean a reduction in their tax liability by as much as 50 percent. ABC has worked with both parties in both the House and Senate to bring about this immediate form of tax relief to ABC members. After a considerable amount of hard work this important tax legislation passed the full Legislature just a couple weeks ago and was quickly signed into law by the Governor. Fighting to allow companies the opportunity to hold onto more of their resources so they can successfully stay in business and hopefully even expand is critical to growing not only the construction industry but the entire state economy. Ensuring that opportunity is a duty from which ABC will never deviate. H
Yours for the Merit Shop,
Chris Fisher President
2008
Associated Builders & Contractors of Michigan 120 N. Washington Square, Suite 805 Lansing, MI 48933 PH: 517-853-2545 • FX: 517-853-2546 • Web: www.abcmi.com
FEATURE Article
ABC of Michigan Women Make Their Mark in Construction ABC of Michigan recently interviewed a number of successful women
in the construction industry; women who also are active members of ABC of Michigan. Participants included five who are leaders in the construction industry: Renee Sumerix, Bashore/Marco Masonry in Lansing; Linda Beesley, Flo-Aire Heating & Cooling in Southgate; Brenda Geiling, Owner and President of Lee Construction in Bay City; Renee Sandborn, Owner and President of Sandborn Construction in Portland; and Linda Vos-Graham, Owner and President of Vos Glass Inc, in Grand Rapids. We asked all of them the following questions and their answers follow. What prompted you to choose a career in the construction industry?
Renee Sumerix, Bashore/Marco Masonry, Lansing: I began my career in construction after my father, Rich Bashore, CEO of Bashore/Marco Masonry, Inc. suffered a brain injury. This event brought to light the awesome contributions his work had on landscaping as well as the economy. Linda Beesley, Flo-Aire Heating & Cooling, Southgate: I married into the business. My father-in-law started the business in 1955. My husband has worked here since he was 10. Although I worked outside the home, I came to work here in the late 1980s when my husband, Bob, needed someone he could trust with the checkbook. So I quit the sheriff’s department and here I am. We bought out Bob’s dad back in the 1990s. Brenda Geiling, Owner and President, Lee Construction, Bay City: I chose a career in construction because I find it is extremely challenging, yet rewarding in many ways. I knew I could apply many of the skills I already had to this industry, and build a successful business.
Renee Sumerix Renee Sumerix began her career in construction after her father, Rich Bashore, CEO of Bashore/Marco Masonry, Inc., suffered a brain injury. Renee is proud to be a part of a family company that has a tremendous impact on the local community, while balancing her personal and professional lives.
Renee Sandborn, Owner and President of Sandborn Construction in Portland: In 1994 we originally started our business as a trucking and snow removal service. The more people saw our name on the trucks, the more calls we received to do excavation for residential homes and farms. We made a decision to channel our business into excavation instead of trucking. In 1996, we started our first project on Michigan State University’s campus; and have worked on more then 40 projects in the past 12 years. We now do more general contracting then subcontracting work. Our job size is now between $100K and $3 million. Also, I love to be outside and everyday is a new and different day. Linda Vos-Graham, Owner and President of Vos Glass Inc, in Grand Rapids: The coaxing of my father is what brought me into the business and I enjoy it, including the customer contact, as well as the employees who work here. Today we are one of the largest glazing subcontractors owned by a woman. My mother, Barb, continues to be an important part of our success. She is one of my biggest supporters and an early pioneer for women in construction. Our company just finished its 25th year in business and I have been here for 24 years. Out of high school I went to college to major in journalism, but soon took a position in a local ambulance firm. Then my dad recruited me to come to work for the company. Today, I am working with automotive, residential and commercial construction customers. The vast majority of our business is generated through commercial contracting glazing. I was born and raised in Grand Rapids and have a sense of pride being part of a family business. Vos Glass has had significant growth these past five or six years and I hope to pass it on to my two sons eventually. www.abcmi.com
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FEATURE Article It has traditionally been a male dominated profession. From your perspective what has been the biggest challenge to your success in this industry? Renee Sumerix: The biggest challenge from my standpoint, as office staff, was to learn the construction process: how various trades are interrelated and work together to meet the deadlines of construction scheduling. Field knowledge is extremely helpful in proper management of stakeholder relations. Linda Beesley: In our business it’s team work. Bob is in the field and I am in the office. Keeping a tight reign on the finances and always pushing to be sure that our staff does the best job possible has added to our success. I also feel our membership in ABC has fueled our success. We have come to know hundreds of fellow members across the country and have had some great business relationships, as well as forming some life long friendships.
Linda Beesley Linda Beesley married her husband, Bob, whose family founded Flo-Aire Heating in 1955. Bob has been involved with Flo-Aire since the age of 10. Linda worked for a United States Congressman and the Wayne County Sheriff’s Department, before coming to work at Flo-Aire in the late 1980’s.
I have always thought actions speak louder than words. To that end, I have been on the local ABC board of directors for many years as well as having served five years as president. I was the first woman elected as board president within our region, and as far as I know I am still the longest serving president in ABC National’s history. As I said actions speak louder than words. Brenda Geiling: I find many times that others in the industry choose to seek out and pursue my male project manager or supervisors, instead of myself. Traditionally, women held positions only in an administrative role. Even though I run the business, I get the impression men are still uncomfortable in dealing with a woman in this industry. There is still opportunity to change the traditional stereotype of women in construction. Renee Sandborn: [My biggest challenge has been to] get respect on job sites and being allowed in the “Boys Club.” People will tend to believe a woman’s knowledge isn’t as great as a man’s on a job site.
Linda Vos-Graham: I sense I have the same challenges as most anyone else. I don’t give it much thought to being one of the few women. Generally speaking I haven’t been treated any differently. Customers have the same needs and expectations regardless of your gender, race or age. What is being done by your company and others to encourage more women to choose the construction industry as a career? What more needs to be done to encourage the next generation of women to choose construction as a career path? Renee Sumerix: Social ethics are a priority to our company; they provide a favorable environment for men and women alike. In order to encourage the next generation of women and men to enter a career in construction, more focus on youth at the primary level of education is required; educate students on the value and need for individuals working in a hands-on environment. Not every student is destined to go to a four year college program. Although higher education is of great value in all types of industry; skilled trades are locally based, and not subject to “outsourcing,” as many of the rudimentary functions of our businesses today. Linda Beesley: A few years ago I was asked to speak at a local school about being a woman in the construction business. I always try to take advantage of speaking to young people about construction in general. It would be great if we, ABC, had a direct line to the school counselors so that they would understand that not everyone is cut out to be a doctor or lawyer. Construction is a good career path and not a negative one. Brenda Geiling: I believe the success of women in the industry encourages other women to believe this is an obtainable career. Unfortunately, many women I have spoken with are intimidated by the perception that women are not taken seriously or given the same opportunities. In order to encourage women to choose construction, the industry leaders need to promote career opportunities in our colleges and schools, where the career decisions are already starting to be made.
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Renee Sandborn: I go to the local public schools and talk about careers. Linda Vos-Graham: The big thing is that you look at people without blinders on and take them for what they are, or what they potentially can be, no matter the gender or race. The key is to provide opportunity for those willing to work hard, just like my dad did for me. What has been your biggest success in your construction career? Renee Sumerix: Learning, learning, learning….. Linda Beesley: This ties in to the next question. Keeping everyone working and the doors open after my husband had an industrial accident. He was off work over six months and it was a real challenge to remain ABC chapter president, run the business and the household, as well as taking care of Bob’s medical needs. Brenda Geiling: My company was approved as a prime general contractor, based on the same criteria as traditional male owned companies, and awarded contracts to work for Dow Corning and Hemlock Semi Conductor. Both companies are major, well respected corporations in the Tri-City area as well as internationally. My entire team worked extremely hard to maintain a solid performance and safety reputation. When I signed the contracts we felt an immense sense of achievement. Renee Sandborn: Making the front page of our Sunday paper, the Lansing State Journal, and working solo on a project without help from my husband; and doing it under budget and on time.
Renee Sandborn Renee Sandborn is the owner and president of Sandborn Construction, in Portland. She has been in business for 14 years. Renee has three teenage children and keeps them involved in her landscaping supply business which the kids run with their friends. She has kept busy over the years as a soccer mom, helping her kids with homework, and helping with school field trips.
Linda Vos-Graham: Continuing the success that was started by my parents and dedicated employees. Successful transition to the new generation of leadership, especially in a family business, is challenging and often not successful. We have nearly half of our employees that have been here over 15 years, and they have worked with both my father and me. ( Jake Vos passed away in 2003.) Through hard work and commitment we have moved the company as a team forward in many ways including technology, skills, production efficiencies, gross sales, safety and so on. What has been the biggest challenge, or disappointment? Renee Sumerix: The lack of state and local governmental support; both in terms of the merit shop philosophy and fiscal policies. In an economic downturn, it is especially important for our units of government to make cuts relative to those in the tax paying sector. Without this balance a turnaround becomes further from our reach. Additionally, awareness needs to be heightened among elected and appointed representatives that Merit shop contractors provide highly skilled quality craftsmanship, and can significantly reduce overall construction expenditures, when compared to contractors operating under bargaining agreements. Laws and Ordinances should not exclude Merit shop contractors through use of Project Labor Agreements and disguised “Local Contractor” Ordinances. The passing of additional taxation under the Michigan Business Tax of 2007 was a huge blow to a multitude of industries, and construction is not immune. Our leaders need to place focus on what generates a positive economy. Certainly, it is not by punishing those who create jobs – which create expendable income. Doing away with the Single Business Tax was the agenda – how did that turn into a 22 percent increase in taxation? The budget cannot continue to be balanced on the backs of struggling businesses; instead cuts need to be made in fiscal spending. Brenda Geiling: Even though my company has been approved to work for corporations, we still have to rely on invitations to bid, in order to exercise contracts. This means even though my company is approved under the same criteria as any other company, I have to rely on receiving the invitation to bid to be able to perform work. It has been a challenge getting the invitations, even though other companies are invited.
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FEATURE Article Renee Sandborn: My biggest challenge will be the job I am working on this summer on the West Circle Steam, Electric and Water at West Complex at Michigan State University. My disappointment was being told by MDOT that I was not a “real” woman-owned business; that I didn’t really work out in the field. They did approve us shortly after with the help of ABC and a stack of pictures supplied by MSU of me working on site. Disappointment would be personally working on a job and not getting paid. It’s a little more personal. Linda Vos-Graham: It’s challenging to run a successful business with nearly 60 employees and projects ranging from several thousands dollars to over a million dollars; while managing your household, especially as your children become teenagers. Time management is the big challenge. Also keeping up on industry changes such as LEED, BIM and so on. What has ABC done at the local, state or national levels to promote women in this industry, both getting into it and moving up in a career path?
Brenda Geiling Brenda Geiling, Owner and President, Lee Construction, Bay City chose a career in construction because she found it extremely challenging and rewarding. Brenda had confidence that she could apply many of her skills to the construction industry, and build a successful business.
Renee Sumerix: ABC recognizes individual strengths to benefit the local construction atmosphere as well as provides workshop opportunities for continued learning and networking between trades and with political leaders. Renee Sandborn: ABC does a great job of recognizing women in construction and wants us to be involved. [They offer us] respect and the feeling of being needed.
Linda Vos-Graham: I have had the benefit of participating on the board of ABC West Michigan Chapter. Annually I visit high schools for career days and talk to students, both male and female, about non-traditional jobs that are out there. I have a good relationship with many high school counselors and they refer potential candidates to me to allow for job shadow opportunities. Comment on the educational programming available and is there any assistance offered specifically for women in construction? Renee Sumerix: Educational opportunities are always available to those who seek it, in a formal setting or as self study. I am not aware of assistance specifically for women; however, I would like to see a work shop for women/minority business owners and the opportunities that exist with this type of organization. Linda Vos-Graham: It is just taking advantage of what is out there. The West Michigan ABC chapter offers great opportunities for everyone. Do you have opportunities to collaborate or meet with other women in the construction industry? Renee Sumerix: In daily operations of the business, I am blessed with many opportunities to meet with other females in the industry. Being a board member at ABC Central Michigan has expanded my network of contacts of both sexes. Linda Beesley: There are a couple of other groups that specialize in women in construction. However, Bob and I really believe in ABC and the merit shop so I opted to become involved there, instead of looking into a gender specific group. I enjoy breaking down the male (female) walls. Brenda Geiling: I have had numerous opportunities to speak with other Women Business Enterprises. Through the bid process on projects, I come in contact with many WBE business owners. Renee Sandborn: I do but I choose to work with ABC on my limited free time. Linda Vos-Graham: I am active in several trade association such as ABC, American Subcontractors Association, National and Michigan Glass Associations. When you see women at these meetings; it’s natural to seek each other out. We share information and experiences.
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What else is important to your career in the construction industry that you would want to include in this story? Linda Beesley: I really feel it would be in the best interest of every person in Michigan to abolish PLAs. It just is crazy to continue to waste the tax dollars that we all work so hard for. It would open up so many more jobs for every construction worker. Brenda Geiling: The most important to me is the reputation of my company and myself as a leader. My team takes pride in going above and beyond in the construction process, and they have done a phenomenal job in maintaining both a perfect safety record and stellar performance reviews. I want to recognize the rest of my team, because they are a large part of my success as a woman in construction. Renee Sandborn: Being a member of the ABC Central Michigan Chapter Board of Directors, ABC Workers Compensation Board, and working on the MSU campus for 12 years. We have been in business for 14 years. We also are DBE certified with MDOT. Linda Vos-Graham: At work we often refer to the wisdom of my late father, as “Jakeisms”. One “Jake-ism” we often recall is “We’re in the people business.” Like most Western Michigan contractors, we take pride in building as a team and holding tight to things like honesty, trust and respect. We feel we try hard to keep this focus in all that we do. How have you managed to balance the family, career and personal aspects of your life? Do you think this issue is different for men? Renee Sumerix: Balancing of family and career has never been an issue of concern. Strongly defined priorities and a lack of procrastination allow me to meet the various demands of my personal and professional life. The only difference attributable to gender would be maternity leave; otherwise it is more dependent on personal attributes and your center of motivation.
Linda Vos-Graham Linda Vos-Graham is the owner of Vos Glass Inc. in Grand Rapids, a professional, full service glass company. The company was founded by her father, Clarence “Jake” and her mother Barb Vos, with partners John Merryweather and Nelson Veltman in 1982. Led by Linda since 2002, Vos Glass remains a family owned and operated business. The company successfully completes glazing projects of all types and sizes throughout the West Michigan region.
Linda Beesley: Caffeine!! You get up a little earlier and go to bed a little later. Family always comes first. Balancing work and family life is not too bad; it is trying to add a personal life that gets tricky. As a wife, mother and grandmother as well as daughter, sister, aunt and business person, it is very hard to continue a personal relationship outside of the business relationships. I have always said that ABC is like family, maybe that’s because the friends we have made at ABC become extended family. When Bob was injured in 1998, my ABC family was the first at my side to offer anything they could to help. They will always hold a special place in my heart. Brenda Geiling: This isn’t a 9-5 job, and it is challenging to maintain some separation from business to personal life. I have had to become a master of multi-tasking, to balance everything. I don’t believe it is any different for men, as they too have many interests and responsibilities outside of their construction careers. Renee Sandborn: It is very hard. Our three kids are teenagers and we try to keep them involved with our business. We have a landscaping supply business and they basically run it with their friends. Women, usually have more household chores and motherly duties that are expected of them; from being a soccer mom, providing homework help, grocery shopping, taking the kids for hair cuts, doctor and dentist appointments and school field trips. We own four horses and my daughter shows them all summer long. The family takes the winters to race snowmobiles and travel because the summers are too busy for family time. Linda Vos-Graham: Balancing work, home, and the needs of two teenagers are even more challenging when your husband and mother work with you as well. We also have several other groups of families here; other husband-wife teams, brothers, cousins, etc. I have employees whose fathers worked for my dad. So this is an extended family business. It’s a lot of coordination and understanding. We are passionate about what we do as a group. We have a lot invested here. The family business is actually more of a common bond; there is no real special gender focus. We try to be fair, compassionate and understanding of each employee’s needs. H
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FEATURE Article
Building ‘Michigan Hill’ into a Worldwide Health Center
Known as “Michigan Hill”
or “Medical Mile” it has become one of the major health care developments in the nation, and ABC of Michigan members are playing a big part in making it happen, according to Chris Fisher, president of ABC of Michigan. “ABC member companies of the Western Michigan chapter have carved out their niche in building facilities that showcase their craft and promote economic development and the delivery of health care in the 21st Century, both in Michigan and nationwide,” he said. These companies include Owen-Ames-Kimball, The Christman Company and Wolverine Group.
Western Michigan Chapter in 2000; and Bill Ogden, the company’s general superintendent, who also serves on the ABC chapter’s safety committee. Schoonveld pointed to one of OwenAmes-Kimball’s top projects, and when completed next year, it is going to have a major impact on the health care future in Michigan. In a joint venture with Hunt Construction Group of Indianapolis, Indiana, the companies were awarded by the Van Andel Institute (VAI) to serve as construction manager for VAI’s second phase construction, located on what is known in Grand Rapids as “Michigan Hill.”
OAK Builds Health Care Future with Van Andel Institute An ABC member for 25 years, employee owned Owen-Ames-Kimball (OAK) has been in business since 1891 creating landmark buildings in West Michigan. The Grand Rapids skyline is the best example of the company’s excellence and innovation, from historical treasures that include the Ryerson Library and the Grand Rapids Civic Theatre to inspiring contemporary designs, such as the conservatory at Frederik Meijer Gardens and the Kent County Courthouse. “The Van Andel Institute makes a positive impact on the world in regard to medical research and what an honor it is for contractors, through our work, to indirectly contribute to their effort.” – OAK President, Bill Schoonveld
It’s a company with a strong past, but with a leadership team firmly in sight of what will keep Owen-Ames-Kimball as a major construction industry player into the 21st Century and beyond. OAK is led by its President, Bill Schoonveld, who also once served as president of the ABC
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The Van Andel Institute’s expanded facility will cost $170 million and is located directly west of the existing facility on “Michigan Hill” in Grand Rapids.
“The Van Andel Institute makes a positive impact on the world in regard to medical research and what an honor it is for contractors, through our work, to indirectly contribute to their effort,” said Schoonveld, who added that Phase II completes the vision of Jay and Betty Van Andel for a world class cancer research facility to combat the effects of cancer and improve the quality of life for people who suffer from this debilitating disease. VAI has led the expansion of the life science industry in this region. Collaborative partnerships among world-class health care, research, and educational organizations have sparked dramatic growth in the
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life sciences sector in the region, making Grand Rapids a career destination choice in this area. VAI expects to employ over 800 people, with Phase II, creating close to 550 jobs in the health care field.
Owen-Ames-Kimball Building Phase II Schoonveld said every construction project needs to be a team effort of all parties involved. In addition to OAK and Hunt Construction, many other ABC members played a key role in building VanAndel. Some of those include: Architectural Glass & Metal, Bareman & Associates, Bouma Corp., Buist Electric, Great Lakes Systems, Helms Caulking, Modern Fire & Security Systems, Ritsema Associates, Van Dam Iron Works, and Vos Glass. According to Schoonveld, Hunt and OAK conducted several outreach meetings to the contracting community to explain and promote the project. This included reaching out to the West Michigan Minority Association. The Van Andel Institute made an early commitment to diversity. The second stage of the Van Andel Institute is construction of a 260,000 square foot addition containing approximately 90,000 square feet of lab space and is connected to the existing Van Andel Institute, a 162,000 square foot bio-molecular cancer research facility. The new addition will contain laboratory space, offices, meeting rooms, large gathering rooms, a library, cafeteria and common space for approximately 400 additional employees. “The expanded facility will cost $170 million and is located directly west of the existing facility bounded by Crescent Street and Division Avenue on the south and west sides. Building it has had its challenges requiring extensive earth retention systems due to the tight, urban site location,” Schoonveld explained.
The Christman Company and Michigan State University Medical School Team Up He said the Institute is set into a steep hill at the edge of the town center. The building follows the slope of the hill, using its natural properties to its advantage. Three segmented convex glass roofs cascade down the east side of the building, with the rapids of the nearby Grand River in view. According to Schoonveld other unique design elements include: • Glass roof structures and windows that provide abundant natural light, even to several laboratories • Open spaces and layout that foster random encounters and the free exchange of ideas among employees working in different areas • Innovative system of climate control based on integrated design of walls, roofs and lab fixtures • Custom-designed modular lab benches and work surfaces that are adjustable and easy to reconfigure • Below-grade or partially underground levels accommodate research requiring reduced or no light • Raked floor of the building’s auditorium located below grade to profit from natural acoustic and visual isolation He also said that the expanded Van Andel Institute will be a LEED certified facility. Sustainable design features include a green roof, storm water collection tank, photovoltaic solar panels, water efficient fixtures which reduce water consumption by 30 percent, heat recovery and energy savings through right sizing of equipment, and a completely automated building control system to reduce energy consumption. “Sustainable construction practices include recycling more than 75 percent of construction waste, utilization of building materials with a high recycled content and utilization of locally manufactured materials to reduce transportation and greenhouse emissions,” Schoonveld concluded.
The fact that The Christman Company and Michigan State University (MSU) have again joined forces on a major construction project should not come as any surprise. The company has a centurylong relationship with MSU, beginning with construction of Agriculture Hall on the East Lansing campus 100 years ago this year; all the way to the Breslin Center, home of the MSU Spartans championship men’s and women’s basketball teams. This time, the project is no less important to the future of the Land Grant University, as Christman builds the Grand Rapids medical education facility for Michigan State University’s College of Human Medicine in the Michigan Street Development project on what has been dubbed the “Medical Mile.” “We are honored to be MSU’s construction partner for this important project certain to have significant positive impact on the university, on West Michigan and on the health care community throughout the state and beyond.” – Dan LaMore, Vice President of Christman Company, West Michigan Operations
Now underway, it includes the $90 million ($48 million in construction), 180,000 square foot, Michigan State University Secchia Center College of Human Medicine, part of the University’s West Michigan Medical School Expansion. The project will include teaching laboratories, classrooms, offices, and student areas. “We are honored to be MSU’s construction partner for this important project certain to have significant positive impact on the University, on West Michigan and on the healthcare community throughout the state and beyond,” said Dan LaMore, vice president and principal in charge of West Michigan operations.
Now underway, the 180,000 square foot, Michigan State University Secchia Center College of Human Medicine, is part of the University’s West Michigan Medical School Expansion.
He said plans for the other Michigan Street Development buildings include office and laboratory space, research and technology and academic space. The facility will also include a central food court, with the fourth building to be completed in a third and final phase. With final completion scheduled for 2010, the massive project will ultimately be valued at more than $250 million. The Secchia Center will be located across from the Van Andel Institute and Spectrum Health. It has been named the Secchia Center in recognition of the lead gift for the medical education building from alumnus Ambassador Peter F. Secchia toward the $40 million in private support required to complete the project. Michigan State University College of Human Medicine is slated to enroll its first class of 100 first-year students in Grand Rapids in 2010, when the new facility opens, and second-year students will begin study there this fall in a leased facility. Once the program is at full capacity, enrollment in Grand Rapids will exceed 400 students.
www.abcmi.com
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FEATURE Article “We were founded by H.G. Christman in 1894 with a set of fundamental business principles,” said LaMore. “Building lasting relationships, honoring all commitments with integrity, always innovating, having passion for one’s work…these simple values really do form the foundation on which our business – and success – is built.”
A number of West Michigan partners have joined MSU in this endeavor, including Spectrum Health, Saint Mary’s Health Care, the Van Andel Institute, Grand Valley State University, and Grand Action, a not-for-profit organization that works to identify and support downtown Grand Rapids revitalization projects, and The Right Place, a regional nonprofit economic development organization that promotes economic growth in the areas of quality employment, productivity and technology in Greater Grand Rapids. These partnerships will raise the level of medical care in West Michigan and lead to innovations that benefit citizens throughout Michigan and beyond.
Building Solid Foundations Over its long history, The Christman Company has been associated with economic expansion and developmental success throughout the region. The company has grown and has been recognized as a newsmaker and an innovator leading the construction services industry in the latest practices and technology. At the same time, Christman vice president LaMore described the company as one that has not changed its essential character in the 114 years it has been in business.
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Christman has been a member of ABC for 15 years. “Presently, we are involved on the ABC awards committee, and look forward to continued involvement with the organization,” LaMore said. He credits a number of ABC member companies playing a key role in the Michigan Street Development project. These include: Bouma, Allied Mechanical, Architectural Glass and Metals, Brigade Fire Protection, Feyen Zylstra, Van Haren Electric, Ritsema, Sobie, Van Dellen Steel, Rivercity Mechanical, H & H Painting, Dave Cole Decorating, and Vos Glass. “All of our ABC trade contractors have worked extremely well together with an unprecedented sense of pride in their work,” LaMore explained. “Our projects at Michigan Street Development have had tough schedules, complicated logistics, and are multiphased. Our ABC trade contractors have always been part of the solution when dealing with budget, schedule, and quality. We are proud to be a part of such a great team.” LaMore explained that Christman’s partnership with ABC in Western Michigan is key to its success because it has been through its long lasting relationships that success in construction projects has been reached. “Through our long-standing relationships and network with the best trades in the area, extensive outreach and structuring of bid packages for trade work that take maximum advantage of the strengths of local firms, we have been able to maintain a focus on maximizing involvement of local trades.” “For our own professional staff, Christ-
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man has a significant corporate ‘talent development’ initiative focused on finding, developing and retaining a highly skilled talent pool. These human resource efforts include systems for staff appraisal, development and monitoring; systems for recruiting, selecting, orienting and relocating; training plans for leadership, technical and business skills; and creating future leaders. A key part of this program is our ‘Christman University,’ a comprehensive internal training program developed and delivered by the senior leadership of our company in which Christman project team members at every level are challenged to share their best work practices and collaboratively develop shared tools and resources that continuously refine our leadership expertise and approach. Through efforts such as these, we are proud that we are consistently able to recruit and retain one of the most expert workforces in our industry. “ Incorporated in Michigan since 1927, The Christman Company has been a top construction leader in the state for close to 100 years. The company’s reputation and success is exemplified by a long list of successfully completed building projects; with one currently regarded to make a significant contribution to the health care industry. This spring, Christman broke ground as the construction manager of the Secchia Center, the new home of the Michigan State University College of Human Medicine in Grand Rapids.
Wolverine Makes De Vos Children’s Hospital a Reality 100 years from now when local historians look back on the early 21st Century and the expansion and building boom that helped reestablish Grand Rapids as an economic and jobs creating center in Michigan; Wolverine Building Group (WBG), a long-time ABC member since 1974, will hold a special place in the history books. WBG is a full service construction company providing expertise in building management throughout the United States. It’s actually four companies in one, delivering full-service design and
build general contracting; and the company is making its mark in reinventing the look and feel of West Michigan. The individual units, that makeup Wolverine Building Group have their own specialization, identity and include: Wolverine Building, which is under the leadership of Mike Kelly, specializes in building manufacturing facilities, warehouses, offices and retail projects for some of West Michigan’s finest companies. Fryling Construction, which is led by Dick VanderZyden, focuses on the construction of multi-unit facilities, assisted living developments, condominiums, historic renovations, retail buildings, churches, restaurants and office buildings. “Every building has an impact on its community and Wolverine strives to keep this impact positive to build a stronger and closer community. We feel that outreach is important not only to the development of the surrounding community, but also to the enhancement of our business efforts and the individuals we employ.” – Dick VanderZyden, Wolverine Building Group
Wolverine Construction Management was founded in 1993 as a separate division of WBG, and is also led by VanderZyden. It sets the industry benchmark for the quality construction of health care and educational facilities. Current projects include the Robert Grooters Development Company’s Bridgewater RiverHouse Condominiums, Spectrum Health’s Helen DeVos Children’s Hospital and Saint Mary’s Hauenstein Neurological Center. The most recent unit in the WBG family of companies is Wolverine North America was founded two years ago as a separate division of Wolverine Building Group. Kelly also leads this unit which offers fullservice program management and construction services for projects nationwide. It was launched in response to requests from current customers to work with them outside of Grand Rapids and West Michigan.
The Helen DeVos Children’s Hospital will have a major impact on the business climate in West Michigan, as it will require a highly skilled specialty workforce.
VanderZyden, who holds a leadership position with ABC as a member of the board of directors of the West Michigan Chapter, emphasized that Wolverine Building Group is more than just about building grand structures. “It’s also about being part of the community,” he said. “Every building has an impact on its community and Wolverine strives to keep this impact positive to build a stronger and closer community. We feel that outreach is important not only to the development of the surrounding community, but also to the enhancement of our business efforts and the individuals we employ.”
Two Wolverine Projects Impacting Downtown Grand Rapids WBG is currently working on two projects, and both will have a huge impact on the community. The RiverHouse Tower and DeVos Children’s Hospital, one of the Michigan Hill projects, came together due to long term relationships between the owners and contractor. “We have successfully completed projects with Robert Grooters Development, developers of the RiverHouse condominium project, and for Spectrum Health,” said VanderZyden. “Owners that have building experience, frequently understand the value of a contractor and what we can add during the design phase in developing accurate budgets, project schedules, constructability
advice, sustainable design, building information modeling, cash flow analysis and life cycle cost analysis.” He emphasized that the Wolverine Building Groups family of companies have the ability to work in a team environment, add value to a project, and create opportunities to develop long term relationships. “At the same time, a construction manager cannot be successful unless they build relationships with the best sub-contractors,” he added and noted that on the RiverHouse and Helen DeVos Children’s Hospital projects, over 75 percent of the successful contractors are ABC members. “Due to several large projects being built concurrently, bid packages were coordinated to stagger trade proposals between the projects. West Michigan has a highly skilled sub-contractor base and most trade contractors on these projects are based out of West Michigan,” VanderZyden said. He credited WBG’s success due to the strength of what he calls “company teammates.” WBG is surrounded by like minded professionals who have the same goals in mind. “We are a firm believer in this team concept and participate in many groups with the same vision. For example Wolverine participates in a “Hill” safety group that meets once a month. Members from Wolverine sit with other Contractors, MiOSHA, ABC board members and discuss nothing but the safety of our jobs right here in this two mile stretch of road.”
www.abcmi.com
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FEATURE Article Wolverine Sparks Economic Growth According to VanderZyden, both of these projects will individually impact the local economy by providing employment and housing for over 200 families within the City of Grand Rapids. He said the larger picture is much more interesting and complex. The Helen DeVos Children’s Hospital will have a major effect on the business climate in West Michigan as it will require a highly skilled specialty workforce. Many of the people that work in downtown Grand Rapids are seeing the benefits of living within walking distance of their work, great restaurants, entertainment and the energy that comes from living in an urban environment. The success
We build trust.
of RiverHouse is being driven by people moving back into the city. “There are many additional business opportunities that are developing due to the success of these projects from additional hotel demand to grocery stores. All of these businesses are helping to create the thriving city that Grand Rapids has become and the growth will continue,” he outlined. He noted that both the RiverHouse and DeVos projects are large, but are being built in tight urban settings. When completed, RiverHouse, for example, will be the tallest building in downtown Grand Rapids. “Space is very limited and adjacent streets and businesses had to be kept operational and public safety was the number one priority,” VanderZyden explained. He said prior to getting the project off the ground
Smith Haughey Rice & Roegge can help keep your project on track from day one. For decades, we’ve represented contractors, design professionals, and sub-contractors, in every aspect of the construction process. Today, our Construction Law Team includes 16 attorneys who have specific construction industry experience, so you can rely on us for any legal need that may arise. Put your trust in our knowledge and expertise.
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extensive planning was required to coordinate site logistics, developing a schedule to coordinate material delivery, and hoisting and parking was completed early and communicated with adjacent business owners. He explained that site logistics planning was also shared and coordinated between construction management firms of adjacent construction projects. “Project schedules are used extensively to allow for on time delivery of materials due to limited lay down space. The pre-construction planning has paid off with both projects proceeding smoothly.” Wolverine Building Group considers training and improvement to be a continuous process with classes and workshops provided year-round. From LEED Certification to BIM workshops, client expectations and improvement opportunities have become part of the company’s culture.
In Touch with the Community Recently, Wolverine project managers and superintendents collaborated with Habitat for Humanity, offering up their construction skills and free labor to construct homes in nearby neighborhoods in Grand Rapids. WBG hosted an event at the West Michigan Whitecaps Ballpark at the end of May. It brought together a variety of groups involved in the Helen DeVos Children Hospital development. Project managers, superintendents, site workers; the project’s architects; directors and executives from the Children’s Hospital all gathered to meet several families that are cared for by the Hospital. “It gave the entire development team a chance to personally meet the families that will benefit from the new facility,” VanderZyden said. “We wanted to create the opportunity to get away from the busy construction site and see what this project is really about: we are not only constructing an amazing building, but more importantly a hospital that will help thousands of Michigan families.” H
BUSINESS DEVELOPMENT
Open Season for Unions
By: Brian P. Swanson Masud, Patterson, Schutter & Peters, P.C.
It is that time of the year again. As the warmer weather makes its way back into Michigan it signals the beginning of construction season. Unfortunately, this also means unions are going to be back on the prowl attempting to unionize your employees. With that being said, there is no better time to remind employers about what they can and cannot do during a union organizing campaign. Although it is important for management and the union to speak openly to employees concerning their positions, it is equally important that supervisors and managers be well acquainted with the restrictions that the National Labor Relations Act (“NLRA”) places on them. We have, therefore, come up with the “TIPS” rule. This is an acronym or reminder of those things that an employer cannot do. For the most part, as long as employer commentary does not fall within TIPS – threat, interrogation, promise or spying – it is going to be considered lawful employer speech and conduct. “T”hreat – simply means that employers cannot threaten or convey any form of detriment to employees for participating in union activities. This would include talk of a discharge, layoff, loss of pay, loss of benefits, loss of promotional opportunities or retaliation in relation to union organizing. “I”nterrogation – means that employers cannot question employees as to whether they support a union, whether they have signed a union representation card, how they intend to vote, or what they think about union representation. Even casually asking an employee over a cup of coffee how many employees attended a union meeting is considered unlawful interrogation. That having been said, please don’t confuse this with employer commentary or expressions of opinion regarding unions. Employers have a wide range of rights to give their opinions about unions and whether unions are good things or bad things. The point here is that you simply cannot ask your employees for their views regarding union representation. If employees offer that information or express their opinions, that is fine. You simply cannot solicit it. “P”romise is the reverse of threat. An employer is prohibited from promising beneficial treatment such as an increased wage or benefit, promotion, or some other future entitlement to employees for opposing the union. “S”pying – simply means an employer cannot spy or engage in any surveillance activities of any kind. This includes electronic surveillance, eavesdropping, opening of mail, use of third-party investigators or even employee or managerial plants. The National Labor Relations Board (“NLRB”) also prohibits employers from creating the impression of surveillance of employees’ union activities. For instance, it would be unlawful to send an anti-union employee to attend a union meeting and report back as to what was discussed and who attended. Under the spying part of TIPS, it is also unlawful, for instance, to go to a union meeting and write down license plate numbers or take note of the automobiles in the parking lot to see who attended the meeting (from an actual case). If you are in need of additional information as to what you can and cannot do during a union organizing campaign, ABC members can tap into ABC’s many legal resources on labor law. Much of the literature is available through ABC’s online legal library, which includes information on labor relations, tactics for dealing with union organizing, Davis-Bacon Act compliance, occupational safety, and project labor agreement challenges. The helpful literature also includes ABC’s Labor Relations Fact File, which outlines the responsibilities of merit shop contractors to ensure their labor practices adhere to current law. The ABC Handbook to Labor Law is available on the homepage of the ABC of Michigan web site at www.abcmi.com. H www.abcmi.com SUMMER 2008 i 15
LEGISLATIVE UPDATE
ABC of Michigan Tax Cut Efforts Successful A bill that significantly alters the Michigan Business Tax (MBT) for
“The results of the survey confirm that the new MBT and the surcharge are hurting construction businesses,” ABC of Michigan President Chris Fisher said. “They pose a threat to construction jobs in Michigan at a time when the industry is already affected by a weak economy and higher material costs.”
Earlier this year Fisher was joined by Allied Electric President Mike Powers as both presented testimony on this bill to the Senate Finance Committee. To win final legislative approval of the legislation, ABC of Michigan consulted members, CPAs and formed coalitions with business groups. “We provided materials to legislative committees, met with ranking lawmakers, distributed memos and position papers and worked tirelessly to advocate legislation to limit taxes on contractors and subcontractors,” Fisher said.
According to the survey, which had 95 respondents from 900 surveys sent electronically to ABC of Michigan members, only 5 percent said they are finding relief under the new tax, while 11 percent either have roughly the same liability or are still unsure of the MBT’s impact. Subchapter S Corporations were most often affected (88 percent), and all business structures experienced tax increases (80 percent).
construction firms and allows deductions of direct purchase of materials from their MBT liability, was passed in the late hours of the legislative session held June 25-26. Senate Bill 1217 (SB 1217) was signed into law on July 9th.
ABC of Michigan also held successful meetings with key lawmakers, Rep. Steve Bieda, chair of the House Tax Policy Committee and Sen. Nancy Cassis, chair of the Senate Finance Committee; making the case to change the MBT. Fisher said both lawmakers worked hard to move the legislation through the House and Senate. The bill is specific to the construction industry, only, and is retroactive back to January 1, 2008.
Most ABC Members Face Higher Taxes under MBT More than 80 percent
of recently surveyed commercial and industrial construction firms are seeing an increase in their tax liability under the Michigan Business Tax (MBT), according to results recently released by Associated Builders and Contractors of Michigan (ABC of Michigan). Of the 83 percent of firms that had an increase, more than half say it was greater than 50 percent, with some firms seeing tax burden hikes as high as 556 percent.
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The survey also revealed that many firms with less than $18 million in gross receipts seeking liability relief from the Alternative Profits Tax (APT) were disqualified because they did not meet the other qualifications. “The Legislature needs to repeal the surcharge and fix other flaws with the tax before it’s too late,” Fisher emphasized. Construction companies are hurting, and the need for relief is now before any further damage is done.” To view the survey and results, go to www.abcmi.com/.
‘Green Building’ Legislation Flies through House committee In June ABC of Michigan backed legislation that promotes “Green Build-
ings” which passed the Michigan House of Representatives Tax Policy Committee with bi-partisan support. The bill creates tax incentives for green buildings and environmentally sustainable building techniques. The legislation now moves on to the Full House for consideration.
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During testimony before the Tax Policy Committee, ABC of Michigan President Chris Fisher observed that energy costs continue to rise and sustainability issues are more and more prevalent. “We believe that now is the time for Michigan to make an important step, as other states have done, to encourage cleaner, greener buildings,” Fisher said and then went on to state, “sustainable green building practices which our members and industry have championed tirelessly and more environmentally thoughtful construction is an important step in ensuring we leave a softer carbon footprint on the landscape for future generations.” Also championed by the Michigan Association of Home Builders, House Bill 6148, recognizes a green building as a resource-efficient, environmentally sensitive structure that is designed to save money, reduce waste, water, and energy usage, increase worker productivity, and create healthier environments for people to live and work in. The legislation provides credits for project owners who meet certain green building criteria while also recognizing contractors who invest in their employees by properly training them in green and sustainable building techniques. As a member of the U.S. Green Building Council (USGBC), ABC nationally offers workshops to teach understanding and implementation of green building principles and the LEED Rating System. In Michigan, ABC chapters have partnered with community colleges and ABC member companies to be leaders in advancing green building. The ABC Western Michigan Chapter has offered six separate green building classes since September, graduating students with the skills and knowledge to be leaders in green building design and construction. H
Gulf States, Inc. is one of America’s foremost contractors with a nationally recognized safety program. The following highlights our company and services available to you.
COMPANY HIGHLIGHTS INDUSTRIAL SERVICES OFFERED: INDUSTRIES SERVED BY GSI: x Industrial Construction & Maintenance x Petrochemical/Chemical x New Construction x Power/Cogeneration/Geothermal x Shutdowns/Turnarounds x Food Processing x Procurement x Oil and Gas Refining x Pipe Fabrication/Welding x Pulp and Paper x Electrical x Offshore x General & Electrical Contracting x Pharmaceutical x Steel/Rebar Erection/Structural Steel x Manufacturing x Mechanical/Plumbing x Automotive x Instrumentation/Automation x Mining and Minerals x Concrete–Formwork Core Values Powered by People Success is realized through people. Operations Driven Focus on field operations providing the necessary support, appropriate responsibility, and authority to succeed. Be the Best Strive for excellence, continuous improvement and innovation in everything we do. Integrity Be fair and ethical in all we do. Can-Do Attitude Aggressively pursue challenges with a sense of urgency, desire to succeed, and a commitment to hard work and having fun.
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Michigan Operations Manager Erick Forshee (989) 615-2754
www.abcmi.com
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AROUND THE STATE - Chapter news
Central Michigan Chapter
Saginaw Valley Chapter
Southeastern Michigan Chapter
Rep. Opsommer Meets for Breakfast
Saginaw Valley PAC Golf Outing Raises over $20,000
Eberhardt Named Education Director
1501 Rensen St, Suite C Lansing, MI 48910 517.394.4481
State Rep. Paul Opsommer of DeWitt met with the Central Michigan Chapter at its PAC Breakfast in June, to discuss the political and legislative issues facing the construction industry in Lansing and the surrounding area. Over 75 percent of the chapter’s board attended and every member of the board that attended contributed to PAC bringing the chapter nearly to its 2008 PAC goal. The leadership of the chapter demonstrated their belief in the importance of what the ABC MI PAC is doing in what will be a critical election year in Michigan.
Central Michigan Chapter Upcoming Events
ABC Central Michigan members plan to join us July 24th at Oldsmobile Park for ABC Night with the Lansing Lugnuts. A pre-game cookout begins at 6:30 with the first pitch thrown at 7:05. Also, mark your calendars for September 17th; it’s the Fall Golf Outing at Eagle Eye Golf Club with 10:00am shotgun start. H
4520 E. Ashman Rd, Ste G Midland, MI 48642 989.832.8879
Thirty seven Saginaw Valley members donated over $20,000 at the golf outing held May 30, at Buck’s Run Golf Course in Mt. Pleasant. The chapter leaders understand the importance of the upcoming election and the risks faced for Merit Shop contractors if candidates not supportive of the Free Enterprise system are elected both at the state and national levels. Great Job Saginaw Valley Members!
Riverboat Cruise Planned
Join your fellow Saginaw Valley Chapter members for a Riverboat Cruise on July 23, 2008. The Princess Wenonah will depart from the Horak Dock in Bay City, Michigan at 6:00 p.m. Please register with Michelle Revette at the chapter office prior to the event. Mark your calendars for the BIG Golf Outing, set for August 8th, at the Sawmill Golf Course, 19 Sawmill Blvd., Saginaw. Register with Michelle at the chapter office. H
31800 Sherman Ave. Madison Hts, MI 48071 248.298.3600
Carol Eberhardt joined the staff of the Southeastern Michigan chapter, this spring, as its education director. She is responsible for the chapter’s Construction Education Trust that manages Southeastern Michigan’s apprenticeship program. Her leadership of the education programming is a great addition to the team. The ABC of Michigan staff joins the SEMI staff in welcoming Carol to the ABC family.
Southeastern Michigan PAC Breakfast Series
The chapter had a series of breakfasts with ABC members in different locations across the chapter to promote political action and to increase awareness of ABCMI PAC. Special thanks to the breakfast sponsors Linda Beesley, Bill Molnar, Don Luke, Tom Campbell and Dave Sheffield. The chapter also held meetings with ABCMI PAC endorsed candidates for the Michigan House of Representatives, John Accavitti from the 32nd District and John Welsh from the 19th District.
Southeastern MI Chapter Upcoming Events
August 1, 2008 SEMI Chapter Golf Outing at Lakes of Taylor Golf Club August 5, 2008 MIOSHA Training Institute Part 45 - Fall Protection; 9:00am -3:30pm Chapter Office H Proudly Serving Michigan for over 64 years!
1 888 MICH CAT www.michigancat.com 18 i Michigan Merit
SUMMER 2008
Please Update your 2008-2009 directory with the following information: Snyder & Associates Rusty Snyder 2944 Fuller Ave. N.E. #202 Grand Rapids, MI 49504 Phone: (616) 365-9125 Fax: (616) 365-9145 Email: rsnyder@snyderassociates.biz Web Site: www.snyderassociates.biz ABC of MI regrets any inconvenience this error may have caused.
Western Michigan Chapter 580 Cascade West Pkwy Grand Rapids, MI 49546 616.942.9960
Western Michigan Members mark your calendar for the Chairman’s Cup Golf Outing on August 7th, at Thousand Oaks Golf Club in Grand Rapids.
Jim Buikema Retires From ABC
Jim Buikema, who completed 23 years as director of ABC/WMC member services, began his retirement in May. Through the years, Jim has been truly dedicated to the welfare of ABC members and its employees. Membership is the “lifeblood of any organization”, and Jim diligently worked to recruit and retain new members. Since 1985, more than 1,200 new members have joined ABC/WMC with an average retention rate of 90.3 percent over this period. It places ABC/WMC in the top level among ABC’s 79 Chapters.
Have union-only project labor agreements (PLAs) kept you from being awarded a project? As an independent contractor and a taxpayer, you have good reason to oppose union-only PLAs. Now you can take action to help turn around the trend toward PLAs here in Michigan. The new tool in this effort is PLA Watch Michigan and it is now available on the Web at www.plawatchmichigan.com. ABC of Michigan has launched PLA Watch Michigan to reduce the number of union-only PLAs in Michigan by: t Educating and informing ABC membership and interested non-members about PLAs and their affect on the construction industry. t Encouraging ABC members to act when they become aware of PLAs or potential PLAs. t Giving ABC members the tools they need to report PLAs and potential PLAs. Help ABC of Michigan stop union-only Project Labor Agreements on construction projects in your area. Visit www.plawatchmichigan.com for information on what you can do to ensure your company is not discriminated against in bidding projects in Michigan. Together we can make a difference!
Buikema earned the Certified Membership Professional (CMP) designation from ABC national and several membership growth and retention awards for the chapter. His specialty was placing people in the health insurance programs that fit their situation and helping them to gain coverage for workers compensation programs. He also encouraged members to attend meetings or workshops, and provided prevailing wage information to members. More recently, Jim restarted the chapter’s safety program efforts leading to a viable committee and educational programs. To send Jim off into retirement, the ABC/ WMC recently provided him with a rifle and scope to add to his collection. The chapter also sponsored Jim, his sons and grandsons in the Combination Shoot that was held in June. H www.abcmi.com
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FEATURE Article
Contractors Summit Highlights Don’t be fooled.
“The unions want you out of business.” That’s what Peter Kok, a labor attorney and one of four legal professionals making presentations at the 2008 ABC of Michigan Competitive Contractors Summit, said to over 100 ABC member contractors at the first-ever summit held in May.
to be successful in today’s construction market. It brought together ABC member contractors in a day-long session giving them the latest advice and guidance on what they need to do to stay competitive,” Fisher said. Kok, an attorney with Miller Johnson’s Grand Rapids office, kicked-off the presentations telling the group that union efforts to cripple non-union contractors will not go away. “The war is not over and it never will be. Contractors, therefore, must be vigilant in efforts to stop aggressive union tactics in order to ensure competition in the market place. You need to be able to operate your businesses free from the stranglehold of unions,” said Kok, whose areas of practice include collective bargaining, employment labor law, employment, union avoidance and unionmanagement relations.
The Political Challenge is Real
Peter J. Kok, Miller Johnson
According to Chris Fisher, President of ABC of Michigan, the Summit gathering held in East Lansing was designed so ABC members in Michigan can stay up-to-date with the latest in trends, legal developments and labor issues facing the construction industry. “ABC of Michigan wants to ensure that its members have the tools and knowledge necessary
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Fisher said that Kok pointed out the realities Merit Shop firms face in Michigan. “He gave a real glimpse of what may come about if ABC members are not active this election year. There are challenges and threats to our businesses and these are not only real; they are also extremely serious,” he added. “Peter’s message that ABC members need to act now to protect and defend the Merit Shop deserves to be echoed again and again right up until election day.” Fisher cautioned that if members sit this election out the consequences could be grave for the construction industry.
Kok was direct in explaining what nonunion contractors are up against in the 2008 election. “The National Labor Relations Board (NLRB) is a five member board controlled by the President of the United States. If we get a Republican President elected this fall, we will have a favorable board. If we get a Democrat we won’t. That’s just how it works.”
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Frank T. Mamat, Foster, Swift, Collins & Smith
Kok also warned ABC members about the so-called Employee Free Choice Act. “It has nothing to do with free choice. If it passes, unions would be able to come to your place of work and if more that 50 percent sign union cards, no election would be required. It’s going to happen if the White House and Congress go Democratic—this will be passed,” Kok stressed. “It will be the pattern in future union contract efforts.”
Merit Shop Construction Issues Other legal experts joining Kok at the podium included Frank Mamat an attorney with Foster, Swift, Collins & Smith who outlined contractor rights and responsibilities regarding gate system access; and David Masud and Kraig Schutter, attorneys with Masud, Patterson, Schutter, Peters and Vary, P.C. in Saginaw. They jointly discussed prevailing wage compliance issues.
Establishing Reserved Gates Mamut summarized contractor rights and responsibilities in managing reserved gate systems. His presentation centered on contractor dos and don’ts in the establishment of gate entry requirements during a labor dispute. Although a common practice in the construction industry, particularly where numerous employers work at a site but only one is experiencing labor unrest; if not handled properly it can create problems at the job site. “Frank made the point that ABC members need to know their rights and that they need to be prepared. Knowledge of the law, or at the very least the fortitude to turn to your local ABC chapter for advice and counsel, can truly make all the difference in the world,” Fisher emphasized. Mamut, who is an attorney with Foster, Swift, Collins & Smith, specializes in construction law, labor and employment relations, and union organizing attempts. “Unions are gearing up. They are not dead, and in fact are getting more active,” he noted. “Contractors must stand firm. Picketing is part of union organizing tactics and it’s up to you to maintain control of the line and access to the sight.”
trances are reserved for use by contractors and others not involved in the dispute. “Unions may not choose which gate they want to picket —you do. The contractor decides which gate is designated, and then advises the union.” Mamut stressed the need to clearly identify which union is picketing and to clearly identify which gate is reserved.
He has extensive experience in collective bargaining, arbitration and grievance resolution and outlined what is required in a state contract to be subject to prevailing wage:
Generally, once a reserve gate system is in place, the union must confine its picketing to the primary gate. Reserve gate systems are usually effective because unions confine their picketing to the gate reserved for the targeted contractor and the project is not shut down.
Prevailing Wage Impact David Masud highlighted that prevailing wages artificially inflated salaries 40 to 60 percent costing taxpayers billions. “Michigan law is restrictive, there is no system for appeals to the prevailing wage statute, unlike the federal law,” he said noting that there were over 630 prevailing wage complaints in the last two years — with only one against a union contractor. “Most complaints are exclusively targeting non-union contractors.” He emphasized that prevailing wage is stacked against non-union contractors. Masud is a partner at Masud, Patterson, Schutter, Peters and Vary, P.C. in Saginaw.
David Masud, Masud, Patterson, Schutter, Peters and Vary, P.C.
• A contract has to be in existence between contracting agent and contractor. • It is entered into as a result of an advertised invitation to bid on the project. • The contract involves employment of construction mechanics. • It is financed in whole, or part, by the State of Michigan. Continued on page 23
Under a reserve gate system, one gate, or entrance, called the “primary” gate, is reserved for the exclusive use of the “primary” contractor that is the target of the picket line, as well as its subcontractors, vendors and guests; other gates or enwww.abcmi.com
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FEATURE Article
ABC of Michigan’s Competitive Contractors Summit A full-day summit focusing on Michigan labor,
business and economic conditions brought together close to 100 ABC of Michigan members representing all four chapters across the state, to get the latest industry information. The meeting, held on May 29 at Eagle Eye Golf & Conference Facility in East Lansing, featured expert presentations from speakers and staff from the Michigan and ABC National offices, at the first ever Competitive Contractors Summit. Michigan’s current economic conditions have required more ABC contractors to seek opportunities outside of their traditional regions and many are discovering that labor conditions differ from one region to the next. The Summit was designed to enlighten members and help them deal with labor, business and economic conditions that exist throughout Michigan. The summit featured speakers with expertise from all regions in the state and covered all areas of labor law and union tactics. Four attorneys with four areas of labor law expertise provided valuable information on dealing with unions in different regions of the state of Michigan. Ben Brubeck from ABC National outlined pertinent information of importance coming out of Washington D.C., while Barb Lezotte of Lezotte Miller Public Relations gave practical information
ABC Executives John Doherty, Russ Cunningham, Kent Sanders & Mark Sawyer and ABC of Michigan President Chris Fisher
Participants at the ABC of Michigan Competitive Contractors Summit
Members Dave Mollitor, Consolidated Electric; Curt Mulder, Wolverine Building Group; Don Luke, Long Mechanical; Brent Brinks, Buist Electric; and Brian Stadler, Wolgast Corporation
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Southeastern Michigan Members Don Luke, Long Mechanical; Robert Molnar, Wm. Molnar Roofing; Dave Filipiak, Sky Electric; Mark Onslow, Onslow-Sheffield, Inc.; Bill Molnar, Wm. Molnar Roofing; and Dave Sheffield, Onslow-Sheffield, Inc.
Fire Protection Systems
to contractors to help them deal with the media; and get the value of the “Merit Shop” message out to the general public.
ABC Western MI Chapter President John Doherty
Lindsay Shuba, Region 6 Political Manager, ABC National
Design, Install, Service, Maintain
Two panel discussions completed the day long program. A panel of chapter executives gave participants contact information and an issue update for each region in the state. Lastly, a panel of general and subABC of Michigan contractor members, who have faced vari- President Chris Fisher ous issues, enlightened participants with actual situations they have faced in order to stay in business. Photo credits go to Mark Sawyer, executive director of the Southeast Michigan Chapter who graciously agreed to serve as staff photographer for the Summit. Read the companion article: “Contractors Summit Highlights Merit Shop Construction Issues,” to get a summary of the key presentations of the day. H
Jacks
on Associates, Inc
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1111 West Oakley Park Road Walled Lake, MI 48390 248-669-5155 www.jacksonassociatesinc.com
FEATURE Article Continued from page 21
• The contract includes an express term in the bid that the Michigan prevailing wage must be paid each class of mechanics. • A prevailing wage schedule is issued and part of the contract. Kraig Schutter, Masud’s law partner and fellow presenter, outlined record keeping requirements that contractors must maintain. “These include the actual wages and benefits paid and the hours worked on each project for each classification,” he said. Fisher stressed that Michigan’s prevailing wage law is an anti-competitive, special interest handout that is harmful to businesses and taxpayers alike. “For ABC members, David and Kraig were able to provide their expert insights on how to handle frivolous prevailing wage investigations and how to wade through the red tape nightmare Michigan’s prevailing wage law has created for Merit Shop firms,” he concluded. H
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spotlight on members Three Rivers Wins National Award for Dow Diamond Construction Three Rivers Corp. has received one
of the nation’s most prestigious building awards for its construction work on Dow Diamond, home of the Midwest League’s Great Lakes Loons baseball team.
until opening day, we had a little more than one year,” he says, “and there were people who didn’t think it could be done.” Among those were the architects, HOK Sport, who said the project would take at least 24 months. But accustomed to fasttrack procedures used in working with its industrial customers, Three Rivers was able to begin construction with only conceptual drawings and complete the project in 14½ months. Through value engineering during the process, Three Rivers helped save more than $2 million on the project’s cost.
Three Rivers Key Personnel on this project include (left to right): Mike Budek – General Superintendent, Ted High – Senior Project Manager, Garry McKellar – Project Supervisor
Associated Builders and Contractors (ABC) announced that Three Rivers has won its National Excellence in Construction Award. The project is one of 43 nationwide to win the prestigious “Eagle” award. “This is a tremendous honor for us,” says Three Rivers President Dan Kozakiewicz. “And it also says a lot about the area’s building trades and our area as a whole, because this was truly a community project. It also says a lot about the partnership between the owner and architect.”
“This stadium was a big economic project and a rallying point for the community,” says Ted High, Three Rivers’ senior project manager. The biggest challenge, High says, was the field itself. “There was only one way we’d have a natural turf field ready in April of 2007,” he says, “and that was to lay the sod in the fall” of 2006. This put even more limitations on access. “We had to pay close attention to the construction sequence. All our hoists and other heavy equipment had to work around the field.” The project was completed with no onthe-job injuries, illnesses or precautionary ambulance runs. “We had a meticulous eye on safety,” says Mike Budek, general superintendent for Three Rivers. Contractors participated in safety training programs and on site safety meetings – some included guests such as former Los Angeles Dodgers Manager Tommy Lasorda and the Great Lakes Loons’ mascot, Lou E. Loon.
ABC’s Excellence in Construction program was designed to offer public recognition for excellent performance in the HOK Sport, based in Kansas City, Mo., was merit shop construction field. The award the project architect. Midland-based Mich- honors all members of the construction igan Baseball Foundation is the owner. team: contractor, owner and design team. Construction of the $26-million baseball The competition is open to all construcfacility was a unique challenge, says Ko- tion projects completed by ABC member zakiewicz, because it was done in about firms in 2007. Winning projects were selected based on complexity, attractiveness, half the time of comparable projects. unique challenges overcome, completion “From the time the contract was signed time, workmanship, safety, innovation and cost. H 24 i Michigan Merit SUMMER 2008
Two ABC of Michigan Firms Recognized Nationwide for Safety The national organization of the Associated Builders and Contractors (ABC) in June recognized the safest construction firms in 2007 in the United States. Awards were made during ABC’s 18th annual Excellence in Construction and National Safety Excellence celebration, held in Washington D.C. Two firms honored at the event are from Michigan: Rockford Construction, from Western Michigan and GE Insulation, a Saginaw Valley member. “We salute these safety award winners for their outstanding safety records and proven dedication to construction workplace safety,” said Bill Fairchild, 2008 ABC national chairman. “Creating safe work environments is top priority for ABC. ABC provides member firms with safety training programs, information and an annual safety training and evaluation process that serves as a benchmark and guide to maintaining an effective construction safety program.” The 2007 National Safety Excellence Award winners were selected from ABC member firms achieving Platinum status in ABC’s Safety Training and Evaluation Process (STEP) program. Selection criteria for the national safety winners included each member’s self-evaluation scores, lost workday case rates, total recordable rates, and interviews conducted by members of ABC’s National Environment, Health and Safety Committee. The ABC National Safety Excellence and National Safety Merit Awards recognize companies whose safety performance and programs are judged to be exemplary by the ABC National Environment, Health & Safety (EH&S) Committee and companies who exhibit a continued commitment to jobsite safety.
Awards are based on data submitted via STEP Platinum applications and interviews with each companies’ safety directors and owners. Award categories are based on a company’s total work-hours per calendar year and placement within the North American Industry Classification System (NAICS). H
Learning, Living and Teaching Grass Roots Power You’ve heard the motto before
“Get Into Politics or Get Out of Business.” For Rod Kloha that message has been clear since he was a boy. Active in both election and legislative areas of politics, Kloha’s philosophy is simple: “You get what you give. In politics, everyone has a voice and the ability to affect change,” he emphasized. As a political self-starter, Rod explained how he made the jump from the construction world into the political world, why he believes his involvement is important, and how it has made a difference. He recalled attending township board meetings with his grandfather and father when he was a young boy, and that’s where Kloha first saw true grassroots activity. “It directly affected how the government worked with the community,” he added. Giving back to the process of government and speaking up about issues that are important to him and the family business are part of how he was raised—to be a good, productive American citizen. Kloha and his father started a vehicle and equipment maintenance business called Circle K Service in Midland in the mid ‘80s. He has served ABC for more than 16 years at local, state and national levels. Kloha is treasurer and past-chair of the board at the Saginaw Valley Chapter. He is also the PAC treasurer, sits on the board as a director for ABC of Michigan, and he stays busy as an ABC national PAC regional trustee. “My first experience in politics with ABC of Michigan was working to put up road
signs on behalf of Governor John Engler. ABC received a lot of credit for helping elect Governor Engler,” Rod recalled. “Our association was called on by his administration for input on issues relating to construction. Without our effort, I feel we would have been just another special interest group.”
Preparing the Next Generation to Lead
Last year, Kloha brought his 16-year-old daughter to an ABC event to instill in her the same civic mindset with which he grew up. He said that his PAC badge caught his daughter’s eye and she noticed only a few people in the room had a similar colored badge. She asked her father about it. Rod explained to her the value of ABC PAC. She began to understand the imporRod Kloha tance of financial support, what “principled” really means, and how it protects free enterprise and the merit shop. “She’s now an active and generous citizen in the making, saving her allowance to earn a colored badge of her own one day,” he added. Proud to be associated with such hardworking members, Kloha said he’d do just about anything for ABC. Whether it’s his own family or the ABC family, he inspires everyone to get involved. “I really like the face-to-face communication. I feel that at least they are hearing our views, so maybe they will work on doing what is right, in my opinion, for our country,” Rod emphasized. “I am most proud to say that I am a part of an organization that truly supports the free enterprise system and the merit shop philosophy. To me, this is the foundation on which America was built.”
endorsed and receiving financial support from ABC. He noted that in today’s political environment; if you stop talking to elected officials then they will assume they are doing what constituents want. How can we expect them to do what we want if we don’t stay involved? He pointed to one instance where an endorsed ABC member of the legislature, lost support of the association because of a vote that went counter to ABC’s position. “He supported legislation that was against our beliefs and against the beliefs on which he ran. We wanted to send a clear message that we expect people we support to stand by their political convictions and the platform on which they were elected. If they are not going to follow those convictions, then we cannot support them,” Kloha explained. “He got the message loud and clear. He came to me and asked why we turned down his request. Ultimately, he agreed that he should have listened to his constituents more closely and voted based on his conscience rather than political expedience. Since then, he has been more communicative and actively seeks ABC members’ input on issues.” Kloha outlined a specific example of how his involvement in the political and legislative process helps promote a positive political environment in which to do business. He noted how ABC recently benefited from stopping card-check legislation last year. “If it had not been stopped, I firmly believe right now I would be staring across the table at a union bargaining committee,” he said. For Kloha the time he puts into his PAC work is well worth it. “I truly believe in the saying, ‘get into politics or get out of business,’ but it is bigger than that. If we have any hope of keeping our way of life, people have to be involved. We need to elect individuals that believe in the free enterprise system. Once elected, we need to hold them accountable. This is the only way we can ensure our way of life for future generations,” Rod concluded. H
Kloha said he keeps his viewpoints in front of elected officials, especially those www.abcmi.com
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State Taskforce Takes on Independent Contractors
is your ad missing from the maga zine?
The state of Michigan is cracking down on employers who misclassify
workers as independent contractors. The practice is hurting tax revenues and is against the law, according to a recent task force report given to Gov. Jennifer Granholm. The Interagency Task Force on Employee Misclassification says workers misclassified as independent contractors aren’t being covered by unemployment insurance, prevailing wage laws or family and medical leave protections. Employers who misclassify workers avoid paying income taxes, workers’ compensation premiums, prevailing wage and create an unfair competitive advantage, among other things, according to a fact sheet released by the task force. Employers who intentionally misclassify workers can face tax penalties and increased audits. The difference between an independent contractor and an employee is determined in part by the concept of “right to control,” according to the task force. An employer determines an employee’s tasks and controls how they will be done. The employer normally directs the worker. Independent contractors, on the other hand, are in business for themselves. They are hired to accomplish a task or tasks as determined by the employer, but independent contractors retain the right to control how they will get the work done. For more information on the Michigan efforts, visit www.michigan.gov/dleg/ and click on Employee Misclassification Task Force. H
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If so, you are missing an opportunity to showcase your company with the construction industry across the entire state. Your ad, in this one publication, will reach all the nearly 1200 ABC of Michigan member companies, several nonmembers and key decision-makers and policy makers throughout the state – now that’s value! Advertising in Michigan Merit is the one-stop source for effectively marketing statewide to the merit shop construction industry in Michigan. Make sure you don’t miss this valuable opportunity again – your competitor won’t. Visit www. abcmi.com or contact Greg O’Neil at abc.org.ads@sbcglobal.net or 1-800288-4248.
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Advertiser’s index aIS Equipment............................................................................................................................. Page 23 answer heating & COOLING................................................................................................. page 19 capital steel............................................................................................................................... page 12 Crowe chizek................................................................................................................................ page 2 genesee bay constructors................................................................................................ page 20 gulf states inc........................................................................................................................... page 17 jackson associates.................................................................................................................. page 23 J.E. Johnson, Inc.......................................................................................................................... page 21 michigan cat............................................................................................................................... Page 18 P&K Steel Service....................................................................................................................... page 27 Regency group................................................................................................................. BACK COVER skilled trades............................................................................................................................. page 19 smith haughey rice................................................................................................................. page 14 three rivers corporation................................................................................................... page 26
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ASSOCIATED BUILDERS & CONTRACTORS OF MICHIGAN 120 WASHINGTON SQUARE, SUITE 805 LANSING, MICHIGAN 48933
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PRESORTED STANDARD U.S. POSTAGE PAID LANSING, MI PERMIT NO. 689