WINTER 2007 Publication of ASSOCIATED Builders and Contractors of Michigan
Welch Tile & Marble Builds success
also:
B u i l d in g t h e ne x t g ener ati o n o f mi c h i g a n ’ s b u s ine s s e s M a n a g in g y o u r f l eet f u e l c www.abcmi.com osts
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J.E. JOHNSON, INC. Quality—Integrity—Commitment
Complete Mechanical Design, Installation and Service Commercial — Industrial — Institutional 2298 N. Eastman Road - Midland, MI 48642 (800) 646-2690 - (989) 835-6671- Fax: (989) 835-7147 gregy@jejohnson.com
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: • Educating and informing ABC membership and interested non-members about PLAs and their affect on the construction industry. • Encouraging ABC members to act when they become aware of PLAs or potential PLAs. • 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!
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Contents WINTER 2007 Vol.1, Issue 3 4 Executive Perspective
5 Welch Tile & Marble Builds Success Now in its 20th year in business Welch Tile is
dedicated to serving every client in a professional, efficient and effective manner.
6 Campbell Industrial Contractors Building the Next Generation of Michigan’s Businesses One of Campbell Industrial’s most recent projects,
United Solar Ovonic, LLC located in Auburn Hills, is the world’s largest manufacturer of triple junction amorphous silicon photovoltaic solar panels for converting sunlight into electricity.
7 LONG MECHANICAL Leads the Effort in Raising Awareness about EB Don Luke, president of ABC Southeastern Michigan
9 Managing Your Fleet Fuel Costs
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Welch Tile & Marble installed high quality top of the line mosaic tile outside of the VIP Lounge at the Odawa Casino. photo courtesy of Dietrich Floeter
Welch Tile & Marble completed one of their largest projects to date; the construction of the Odawa Casino Resort in Petoskey, which opened in July last summer. Photo courtesy of Dietrich Floeter
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Using a fleet management program to track purchasing data allows you to change and control purchasing on an individual basis, to realize the most cost savings possible.
18 Kozakiewicz Elected Chairman of ABC of Michigan Board of Directors Daniel Kozakiewicz, president of Three Rivers Corp.
on the cover:
SPOTLIGHT on MEMBERs
Chapter and vice president of Long Mechanical organized a local version of Extreme Home Makeover for the Thurmonds, a family from his church whose two children suffer with Epidermolysis Bullosa.
in Midland, has been elected chair of the Associated Builders and Contractors of Michigan (ABC) Board of Directors for 2008.
19 advertisers index
legislative update ABC lobbies on the Services Tax
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around the state Chapter News
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EXECUTIVE PERSPECTIVE When ABC members unite for a cause to make a difference, great things can happen. During this past holiday season we were especially reminded of the importance of giving back and making our communities a better place. When we do this we not only help our neighbors, but we also have the opportunity to lead by example showing time and time again that members of ABC believe in giving back and making a difference.
ASSOCIATED BUILDERS & CONTRACTORS OF MICHIGAN
BOARD OF DIRECTORS Jim Struble - Chair RCI Electric - Southeastern MI Chapter
Dan Kozakiewicz - Vice Chair Three Rivers Corporation - Saginaw Valley Chapter
David Sheffield - Secretary/Treasurer Onslow-Sheffield, Inc. - Southeastern MI Chapter
Bill Buyak Capital Steel - Central MI Chapter
Richard Dvorak Answer Heating & Cooling - Saginaw Valley Chapter
In this issue of Michigan Merit we are again reminded of the power of kindness and giving by highlighting one way ABC members are using their skills to improve the lives of those around us. This year the Southeastern Michigan Chapter and several members donated their time and effort to help a Michigan family whose children have a rare and life threatening disease. ABC members remodeled and updated the family’s home as part of an effort to improve their quality of life. (See story page 7.)
Gary Hengesbach Westphalia Builders - Central MI Chapter
Rod Kloha Circle “K” Service, Inc. - Saginaw Valley Chapter
Bill Molnar Wm. Molnar Roofing Co., - Southeastern MI Chapter
Todd Oosting CD Barnes Associates, Inc. - Western MI Chapter
John Parish Parish Corporation - Central MI Chapter
Curt Petersen The CSM Group - Western MI Chapter
Fred Pylman P & K Steel - 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# 193-9051) is the official publication of Associated Builders and Contractors of Michigan (ABC) 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 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 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 of Michigan.”
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Throughout Michigan and across the country the construction industry touches peoples lives through programs like ABCares, a national initiative designed to promote and encourage community service projects in the construction industry. Community service has always been a cornerstone of ABC, and each year, ABC chapters and member companies strengthen their communities by serving the needs of others. As we gathered with friends and family for the holidays, many reflected on the many blessings and good fortunes for which we are always thankful. We also cannot forget that many other families are in need of a helping hand. As long as there are those in need, programs like ABCares and the goodwill of individuals and companies throughout our industry have risen to the challenge of making a difference. Not only do ABC members build our communities, but we also build up the lives of others. This spirit of giving is what the spirit of the season is all about. On behalf of all of ABC in Michigan, may 2008 be full of prosperity and continued goodwill. H Yours for the Merit Shop,
Chris Fisher President
FEATURE Article W e l ch T il e & M a rbl e Buil d s S ucce s s A quality company built by quality people is how Dan Welch, project coordinator and one of seven family members currently working at Welch Tile & Marble of Kent City, describes their family owned business. Now in its 20th year in business Welch Tile is dedicated to serving every client in a professional, efficient and effective manner. “We are one of the largest tile and stone contractors in Michigan. Welch Tile specializes in jobs that take special talents and quality personnel such as hard tile, glass, terrazzo, stone and epoxy. Our family has worked hand-in-hand for the company’s success over the years,” he said. Working as a subcontractor for Clark Construction of Lansing, Welch Tile & Marble completed one of their largest projects to date; the construction of the Odawa Casino Resort in Petoskey, which opened in July last summer. The facility features a 135,000 square foot main floor that houses 1,500 slot machines and other gaming areas, along with three restaurants, a night club, sports bar, and a 1,000-person capacity show room that is scheduling headline entertainment. The $140 million, 290,000 square foot facility was built to be environmentally friendly. Recycling and resource recovery was a big part of the Casino’s design. The heat system is re-circulated and recovered which helps to cut costs, while protecting “Welch Tile specializes in jobs that take special talents and quality personnel such as hard tile, glass, terrazzo, stone and epoxy. Our family has worked handin-hand for the company’s success over the years.” the environment. Even the construction waste and debris were sorted and recycled during the build phase; and the natural environment was restored back to its normal state as close as possible when the casino was completed. Constructed by Shingobee Builders, in a joint venture with Clark Construction, Welch Tile & Marble was hired to perform all the tiling, with the exception of the main lobby water jet mural. “We had responsibility to tile floors, walls, and ceilings and the quality was top of the line in all aspects from the glass tile to the tiny mosaics on the columns,” Welch said. Unique materials were used in the high stakes rooms and scattered throughout the main area of the
Welch Tile & Marble installed high quality top of the line mosaic tile outside of the VIP Lounge at the Odawa Casino. - photo courtesy of Dietrich Floeter
casino.” Welch said his company is proud of its professional craftsmen who specialize in custom installations ranging from natural stone and glass mosaics to all other hard surface products. We work on both residential and commercial projects including exterior buildings, swimming pools, kitchens, baths, and stone countertops. He also stated that maintaining his workforce is one of his top challenges. “The tile trade has introduced many new and innovative products, all with special installation techniques,” he said. For the Odawa Casino, the tile came from all over the world and most of it was specified from the Casino’s architect in Las Vegas. “Our biggest challenge was to locate and pull in the tile from distribution centers outside our normal channels,” he said. “The other problem was the time frame. We could not start until many other trades finished and gave us a completed product. Welch stressed that the job needed to be closely monitored from beginning to end. “You can’t count on it being ready without active guidance and direction or you will fall behind on a project of this size and stature.” According to Welch it is essential that
projects are closely managed from day one not letting any area sit, so that the company can finish with minimal overtime. “In the end the Casino finished on schedule and Welch Tile & Marble did the job that was promised,” he noted. Welch Tile gets the job done because it has high quality and outstanding service, with a tradition of excellence. “We have professional installers and consultants who will help our customers, achieve their goals whether for a new home or are remodeling your present home, office, kitchen, bath, entry or exterior patio; or for a business project the size of the Odawa Casino,” he emphasized.
Turtle Creek Set to Open in June 2008 According to Welch his company is currently working as a subcontractor for PCL Construction Services Inc. of Minneapolis, Minnesota building the new Turtle Creek Casino in Williamsburg. Welch Tile & Marble is operating in a similar manner that it did at the Odawa Casino, tiling the floors and walls with specialized materials. “This project involves a bit more compared to Odawa since we are involved in tiling Continued on page 8
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FEATURE Article Campbell Industrial Contractors Building the Next Generation of Michigan’s Businesses
panyA fourth generation family-owned comthat continues to meet the challenges
of a changing industry, Campbell Industrial Contractors (CIC), located in Royal Oak and an ABC of Michigan member, has built a solid reputation as an industrial mechanical contractor. For over 60 years no job has been too challenging in either scale or scope for this single source contractor. As an industrial construction company, Campbell Industrial specializes in turnkey installation projects. Their determination to provide a high level of customer service combined with on time capabilities has set a performance standard which has led to many repeat customers. With its staff of 12 it is capable of meeting jobs of any size. According to Kyle Campbell, vice president of operations, Campbell Industrial has taken many years to develop some strong relationships with a few select contractors and service providers since it opened its doors in
feel as opposed to the standard customer and contractor relationship. “We look for long term relationships. We want a project that works out well for both of us.” One of Campbell Industrial’s most recent
Campbell Industrial also is currently setting up United Solar’s new manufacturing equipment at their plant in Tijuana, Mexico. According to Campbell, the project
“We look for long term relationships. We want a project that works out well for both of us.” Kyle Campbell, Vice President of Operations
1947. These professional associations have allowed the company to expand its capabilities when the workload has demanded it. “In the past our work was mainly focused on rigging, process piping, ventilation and other turn key project for the many automotive suppliers that make up a large portion of our state’s economy,” he said. “However, in the past couple of years we have been expanding our focus and doing more work for alternative energy companies while still maintaining a high level of customer service for our existing customer base.”
Building Alternative Energy Companies Campbell Industrial works hard with its clients to create more of a partnership
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Thomas Campbell, Kevin Campbell and Harry Miller unload one of the countless sea containers filled with the solar manufacturing equipment from Japan.
projects was recently completed at United Solar Ovonic, LLC (USO) that is located in Auburn Hills. It is the world’s largest manufacturer of triple junction amorphous silicon photovoltaic (PV) solar panels for converting sunlight into electricity. Campbell Industrial installed a major portion of the manufacturing equipment when United Solar completed their first facility in 2001, while also installing the equipment at their second facility in Auburn Hills during 2006.
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with United Solar came about because USO wanted Campbell Industrial’s longrecognized experience and familiarity working with setting up state-of-the-art multi million dollar production equipment. “We talked to them, stressed our know-how to handle sophisticated equipment systems and install them right. We ended up with the job to do the rigging, electrical, and mechanical work for their production line.” Campbell Industrial always stresses bringing value to a project. “We want to build the frame work and anticipate what a customer’s needs are, and we start by looking at the prep set-up to cut costs,” he said. “To successfully complete the United Solar project we had to work with an interpreter from the Japanese equipment manufacturer to assist in the installation process, to help bridge the language gap between our employees and the employees sent from Japan to work on the project.” Campbell Industrial partnered with some of the top Japanese equipment companies to Continued on page 15
FEATURE Article Carol bathes Sarah, dresses her wounds and very carefully dries her hair. Sarah has to be in an upper body bandage since there is no skin on her scalp and parts of her back,” Luke explained. The home remodeling project came about as a request through the church that both the Thurmonds and Luke attend. It was then handed off to the leadership of ABC
L ong me ch a nic a l Le a d s t he E f f ort in R a i s ing Awa rene s s a bou t EB It’s a disease that caught the attention of the late Princess Diana and former San Francisco 49ers quarterback, Steve Young. You can also add Don Luke, president of ABC Southeastern Michigan Chapter to the list of people who have rallied to gain greater public recognition of Epidermolysis Bullosa, also called EB, a skin disease inflicting constant pain on the more than 10,000 Americans who are inflicted with this illness. Luke, who is vice president of Long Mechanical, has been a strong advocate for the Thurmonds, a family from his church. “They have two children who suffer from EB,” he explained. From there, Luke took the story of the Thurmond family to the ABC Southeastern Michigan Chapter. “We watched a program made for the Discovery Channel and aired in the U.K. about their kids, Josh and Sarah,” Luke recalled. “There were times when people in the room had to
The Thurmond Family: Sarah and Josh, with their parents Carol and Dave enjoyed Christmas in their newly remodeled home.
look away because the vivid images of their affliction were gut-wrenching. After the program, we talked about what we can do as a chapter; how we could help the Thurmonds and make their lives easier.” According to Luke, Josh and Sarah have learned to live with constant pain, damaged and torn skin, open wounds, and must take life one day at a time. Their mom, Carol Thurmond, had to quit her job as a nurse to take care of her children. “It is more than a full time job for her, since Sarah rises at 2:30 a.m. to prepare for school. With the help of a visiting nurse,
“The Thurmond family was overwhelmed with the effort, the tradesmen who worked on it, and the companies that involved themselves in it. It was one of the most amazing experiences they have had in their lives – to have this wonderful work done for them.”
Don Luke, Long Mechanical
Southeastern Michigan Chapter at their January winter retreat and the association adopted this project for the family. Luke led the effort to get other ABC members in Southeastern Michigan to lend a hand to improve the family’s situation. With the help of Onslow Sheffield Inc., Long Mechanical and Crystal Electric, he Continued on page 14
A Tropical Paradise Is Calling You! Join your construction industry peers and experience the best that beautiful San Juan, Puerto Rico offers at the 2008 ABC National Convention, March 5-9. ✹ Enjoy Caribbean culture, music and food. ✹ Participate in exceptional leadership training sessions. ✹ Discover San Juan’s many historical attractions and variety of recreational activities. ✹ Enjoy a variety of fantastic parties and social activities. ✹ See the National Craft Championships skills competition. ✹ Relax at the magnificent Caribe Hilton resort. Get ready to merge business and pleasure –– make your plans now to join us in San Juan! Register Today
www.abc.org/convention
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Continued from page 5
both the casino and adjacent hotel,” Welch explained. Brett Cummings, field engineer for PCL Construction said Welch Tile was chosen because their skilled workers and history of successful work combined with their competitive pricing brought maximum value to the project. “They have done projects of similar scale and complexity to this one and have been able to achieve high quality results. We were confident that they could do the same for us here,” he said. The hotel portion of the Turtle Creek project will have 135 guest rooms including 11 suites and a fitness center. The casino includes two restaurants, a night club, and an event and conference room. There will be approximately 70,000 square feet of gaming space containing both slot machines as well as table games. “The existing operating casino at Turtle Creek is being left in place until the new casino is operational in June. At that point it will be demolished and a parking lot and entry circle installed,” Welch noted. According to Cummings, Welch Tile & Marble brings value to the Turtle Creek
project in many ways through both their office staff as well as their workers in the field. “The office staff has been able to use their knowledge of the products and materials to suggest alternative products that will allow certain systems to perform more efficiently and to be maintained longer without repairs,” he said. “Their field personnel have been able to use their experience to come up with the most efficient means and methods to allow them to keep on schedule. They have also found innovative ways to work through problems encountered in the field in order to attain the desired result without having to push back the schedule.” Welch Tile is installing all ceramic, quarry, glass and metal tile in both floor and wall applications throughout both the casino and the hotel. This includes tiling the restrooms, food service areas and the exterior plaza areas in front of the casino and the hotel.
Dan Welch is a National Education and Training Leader Welch Tile & Marble has been an active member of the National Tile Contractors Association (NTCA) and has set itself apart by helping other tile businesses, nationwide;
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keep up on the latest in the trade. Welch has hosted training at his business location in Kent City for his employees. Welch was selected to serve on the NTCA Board of Directors, and is a regional director for the Great Lakes and upper Midwest.
A major portion of the tiling project completed by Welch Tile & Marble at the Odawa Casino included tiling the floors and walls of the public restrooms. - photo courtesy of Dietrich Floeter
“Dan is the chairman of our training and education committee. In this role he works with our staff on the development of training curriculum, and assists our training director with hands-on technical skills courses. He identifies areas of training that need to be addressed,” Bart Bettiga, Executive Director of NTCA explained. “Dan has hosted training programs in the Grand Rapids area, helping to attract one of our largest numbers of attendees ever; proving that he backs up his dedication by showing other contractors nationwide how to implement successful training initiatives.” Welch calls his involvement in NTCA a great addition to his company. “Our training program is unique. We have implemented a training program which will be complemented by the CTEF (Ceramic Tile Education Foundation). We also hire our own workforce not sub-labor to ensure the service and quality that we are known for in the industry,” he said. Bettiga pointed to the numerous challenges in the tile installation industry. “First and foremost, we have grown so significantly in the past generation, that training and educational programs need to be expanded. There is a shortage of quality, trained professionals, putting pressure on companies to train their employees themselves,” he said. “This investment is difficult to do, and takes a concerted effort and a commitment. Welch Tile has implemented this, and it is paying huge dividends.” A successful tile installation company is a diverse organization, one that is dedicated to embracing technology, committed to supplying a safe environment for its employees and the workplace, ethnically diverse and committed to human resources, Continued on page 16
BUSINESS DEVELOPMENT M a n a ging Your F l eet F ue l C o s t s It’s more than just putting gas in your company cars and trucks. Tracking overall vehicle costs goes right to the bottom line of your business health. Knowing what these costs are is essential. Properly maintained fleet vehicles, from completing scheduled engine tune-ups to proper tire pressure, can be a plus for your company’s financial future. It will let you operate vehicles with cost savings even as gas prices soar up and over $3 per gallon. Any business leader has two options to keep their vehicle fleet operation in positive territory: either increase revenue to meet the increased costs; or lower consumption using less fuel while ensuring scheduled maintenance is completed that maximizes optimal vehicle performance to cut costs. In these tough economic times getting greater revenue is a challenge, and even during boom times, you don’t want to spend your dollars foolishly. That’s where a comprehensive fleet management program can help. It allows you to better manage and control the usage of gasoline for your fleet, rewards you with a lower price for volume purchasing, and guides you to determine the right time to schedule preventative maintenance that will impact life-cycle vehicle costs. In addition to helping you cut your commercial fueling costs and monitor vehicle performance it also provides security and convenience whether you have one vehicle or one thousand in your fleet. The Benefits are Numerous A fleet management program tracks purchasing data and allows you to change and control purchasing on an individual basis, to realize the most cost savings possible. Programs can be set up to track and monitor information per vehicle, per employee or per department. This allows you to track miles driven, miles per gallon, fuel cost per mile (CPM) and overall CPM that takes into account repair costs for each vehicle in your fleet. Fleet management programs allow your cost analysts access on-line giving you flexibility 24/7. Since the reporting specifications are determined by your company, you won’t receive data you don’t need and you are not employing an additional bookkeeper or accountant just to manage this program.
With your drivers using a designated credit card, the system tracks the purchase information you want. The card’s magnetic strip is coded to your specifications and the control options are nearly endless. For example, you may require only basic data such as date, time, location, and total amount of purchase; or you may want to receive data for each card by vehicle, driver, or department. You decide. Other options include limiting purchases on certain cards either by what can be purchased on a card (fuel only, fuel and oil or no restrictions), by certain dollar maximums per purchase or by time of day that purchases are authorized. Flexibility in Setting Controls Your card can even be assigned to a particular vehicle so that you restrict each purchase to no more than the amount it takes to fill up that vehicle with fuel. Are you concerned about controlling personal usage of company cards? Not a problem — you can restrict the time of day that a card can be used. All these restrictions are automatically controlled at the purchase location. This allows you to have separate restrictions or benefits for each employee or each vehicle in your fleet. Additional controls can be achieved by assigning a pin number to certain or all cards, as needed. Not only will this allow you to monitor individual performance for your fleet vehicles but will give you better data for budgeting, help you control card abuse and personal mileage on fleet vehicles. Many of these plans offer volume discounts in the form of cents off per gallon realized at the time of billing. Large consumption is often necessary to qualify for many of these gen-bay.com (810) 653-4117 Fax (810) 653-0261
ABC of Michig a n Set s - Up F ue l S av ing s P rogr a m f or Member s SuperFleet and ABC of Michigan have developed a statewide Association Fueling Program for all members. In this program we will offer you all the same features and benefits that are usually reserved for only companies with large fleets. As a group your association purchases enough fuel to qualify as a large fleet and therefore qualify for volume cost savings. ABC members will save four cents per gallon on their vehicle fuel collectively while reaping the benefit of security and tracking to ensure legitimate fuel consumption by employees. With SuperFleet you can also benefit from recent enhancements to the program such as On-Line management with 24 hr access to establish daily limits such as amount of transactions, dollars or gallons per day limits, as well as time of day limits on a per card basis. These tools are valuable for tracking company fuel purchases and ensuring against fraud. With acceptance at over 1,200 locations in Michigan and 6,000 nationwide, including any Speedway, Marathon, Rich Oil or Pilot Travel Center, the SuperFleet card has all the advantages of most other fleet cards available today. There is no cost for the program, no minimum usage requirement and applying can be done on line or by contacting Tom Farnham, Account Manager, Superfleet at (989) 615-2736 or Mary Boardway at boardway@abcmi.com or (517) 853-2545. H plans so smaller companies have in the past been ineligible to receive these savings. Now, associations have been able to acquire Continued on page 15
Dawn Plantz ext 100 Scott Senko ext 107
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spotlight on members NLRB Ruling in Favor of Western Michigan’s Toering Electric In a ruling that has widespread positive impact on merit shops, both in Michigan and nationwide, the National Labor Relations Board (NLRB) has put a stop to “salting” efforts promoted by trade unions and designed to undercut merit companies. The NLRB decision released in September affects West Michigan ABC member Toering Electric Co. which has been in a labor battle with a local union spanning over 10 years. The NLRB dealt a potential major blow to current union salting practices, the intentional placement of trained union professional organizers and agents in a merit shop facility to harass or disrupt company operations, apply economic pressure, increase operating and legal costs, and ultimately put the company out of business. According to Chris Fisher, president of ABC-Michigan, the NLRB board remanded unfair labor practice charges against Toering Electric to an administrative law judge (ALJ), directing him to reconsider the hiring
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discrimination claims of 18 employees whose resumes were submitted to Toering by International Brotherhood of Electrical Workers Local 275. According to the board, IBEW provided guidance to local unions on salting, the practice of unions sending its members to a non union employer in an effort to obtain employment and then organize other workers. Fisher said a “key tactic,” the board said, was “the filing of unfair labor practice charges at every opportunity.” “The charges would burden an employer with legal costs and provide opportunities to harass and disrupt a nonunion employer’s work force and production through a series of declared unfair labor practice strikes,” Fisher said citing the board’s majority wrote. “For over two years in the mid ‘90s IBEW Local 275 targeted Toering, a Western Michigan electrical contractor and ABC member, with resumes from union members,” Fisher explained. “The union
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followed up by filing NLRB discrimination charges when the applicant members were not hired by the company, and the board said that a union newsletter boasted that Local 275’s salting campaign ‘put a big hurt’ on Toering’s business.” The NLRB order stems from a September 2000 decision by an ALJ which found that Toering violated Section 8(a) (3) of the NLRA by failing and refusing to consider and refusing to hire individuals because of their union affiliations. The company appealed the decision to NLRB, which adopted some of the ALJ’s findings, but remanded other claims in order to allow the ALJ to apply the board’s “new analytical framework.” Fisher stressed that what the board did in its decision was to affirm that applicants for employment are entitled to protection as long as they are genuinely interested in seeking to establish an employment relationship with the employer. Quoting the decision, “only those individuals genuinely interested in becoming employees can be discriminatorily denied that opportunity on the basis of their union affiliation or activity; one cannot be denied what one does not genuinely seek.” Fisher noted that in its decision, the NLRB ruling stated that, “submitting applications with no intention of seeking work but rather to generate meritless unfair labor practice charges is not protected activity under the NLRB. Indeed, such conduct manifests a fundamental conflict of interests ab initio between the employer’s interest in doing business and the applicant’s interest in disrupting or eliminating this business.” Speaking for the majority in joint statement, NLRB Chairman Robert J. Battista along with NLRB members Peter C. Schaumber and Peter N. Kirsanow, said that when the submission of job applicants by “salts” is intended only to provoke litigation it becomes “abusive.” The three went on to state: “We shall prevent those who are not in any genuine sense real applicants for employment from being treated by the Board as if they were,” NLRB said that in discrimination cases brought under the National Labor Relations Act, the board’s general counsel will be required to bear the “ultimate burden” of proving an applicant’s genuine interest in obtaining employment. Fisher hailed the ruling and called it a critical victory in ABC efforts to promote a merit-based workforce in Michigan. H
LEGISLATIVE UPDATE ABC of Michigan Fighting Unfair Employer Provision in New Immigration Bill
MBT Surcharge to replace services tax The Michigan Senate, House and Governor reached an agreement, December 1, to repeal the Services Tax Act by creating a surcharge based on a company’s gross receipts liability. Although not supported by ABC of Michigan, the legislation does have several ABC backed improvements over the initial surcharge proposal passed recently by the Michigan House of Representatives. Some of ABC’s concerns with the first surcharge were addressed in the Senate Finance Committee where ABC and other groups fighting for lower taxes had been lobbying lawmakers to increase and index the phased in owner income threshold. ABC wanted this boosted from $160,000-$180,000, to $170,000-$190,000, while also attempting to lower the surcharge an additional 64 percent. ABC and others in the construction industry were also supporting language that would have grandfathered in existing contracts to exempt them from the MBT surcharge. However those business groups supporting the higher business tax that initially developed the surcharge concept worked with the House Democrats and the Governor to remove this language.
After hours of closed-door negotiations between administration officials and legislative leaders the final agreement to replace the services tax with a surcharge was reached and included the following provisions: • Cuts the House’s surcharge on business by 42 percent to a new rate of 21.99 percent. • Triples the cap from $2 million to an improved $6 million. • Includes a sunset to ending the Surcharge in 2017. • Creates triggers based on personal income growth that could eliminate the surcharge at an earlier date. • Exempts Michigan businesses with gross receipts in excess of $18 million annually, with owner income below a phased in amount of $160,000 to $180,000 AND adjusted business income of not more than $1.3 million. • Protects the ABC backed subcontract deduction for the calculation of gross receipts taxes under the new Michigan Business Tax and surcharge.
The Michigan House Democrats have announced a plan making it a felony for employers to hire illegal immigrants. The proposal requires employers to document the legal status of their workers, and gives Michigan workers legal recourse when companies replace them with undocumented laborers. The sponsor of the bill, Rep. Mike Simpson, said that contractors in his Jackson County district have told him about being out-bid for contracts; only to see the company that out-bid them use illegal aliens to cut costs. ABC of Michigan considers this bill potentially to be a dangerous piece of legislation for well-meaning, law-abiding members of ABC. The proposal puts the burden of proof for establishing employee legal status with the employer, NOT with the worker. This is an unreasonable and impractical expectation that is tantamount to the state of Michigan mandating that employers take on the responsibility of being boarder patrol agents. Even more distressing is that if an employer mistakenly hires an illegal immigrant Continued on page 16
Industry Expertise with Personalized Attention Crowe knows how to build construction businesses. Services include: O Strategic Construction Operations Review and Evaluation (SCORE); O Tax ideas to improve your cash flow; O Ownership transition and management succession planning; O Risk management; O Strategy and performance measurement; O Audits and benefit plan services. For more information, please call: Rob DeGroot at 616.752.4271 Rhonda Huismann at 616.752.4229 Crowe Chizek and Company LLC is a member of Horwath International Association, a Swiss association (Horwath). Each member firm of Horwath is a separate and independent legal entity. Accountancy services in the state of California are rendered by Crowe Chizek and Company LLP, which is not a member of Horwath. © 2007 Crowe Chizek and Company LLC
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AROUND THE STATE - Chapter news Central Michigan
Southeastern Michigan
January 9th – ABC Central Michigan members will be joining other ABC of Michigan members for the annual Legislative Day. The event, to be held at the Lansing Center in downtown Lansing, begins with lunch at 11:15 a.m. It is followed by the Legislative Conference that includes both state and national legislators and candidates. The day concludes with the exclusive ABC member only PAC reception later in the evening. January 21st – Central Michigan’s Lunch and Learn program is set, but where it will be held has not been determined. Find out by calling the chapter office at (517) 3944481 to get complete information. Mark your calendars for a family weekend getaway, January 25-27th at Cabella’s & Splash Park. Join Central Michigan chapter members for a fun weekend indoors. Register with the chapter office at (517) 394-4481. H
The Southeastern Michigan Chapter’s Holiday Open House was held December 20. The fun began at 3:00 p.m. at the new chapter headquarters building located at 31800 Sherman Avenue, in Madison Heights.
2008 Calendar of Events
Saginaw Valley Saginaw Valley Holiday Celebration
Festive Frankenmuth was the site for the Saginaw Valley Chapter holiday celebration. The event, held December 6th at the Bavarian Inn, kicked off the chapter’s holiday festivities.
ABe C. Buzz Membership Campaign The Saginaw Valley Chapter of ABC has launched a new membership campaign with the help of its new mascot, ABe C. Buzz, a construction bobble head that is creating a “buzz” in the Saginaw area. Buzz is helping to provide solutions to problems faced by commercial contractors in the area, by promoting the benefits of membership in ABC. ABC Saginaw Valley is encouraging its members to “share the Buzz.”
Best of the Best Compete The Craft Championship Competition at the Delta College M-Wing in Bay City was held again this year. On December 15, the Saginaw Valley membership had an opportunity to watch the “best of the best” compete to earn the title of top competitor in their trade. Grand prize was the chance to compete at the ABC National Competition in warm and sunny San Juan, Puerto Rico, March 5-9, 2008. H
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Chapter Holiday Open House
Residency Requirements on Detroit Construction Projects Recently, Detroit Mayor Kwame Kilpatrick issued a new directive affecting the City of Detroit’s residency requirements for publicly funded construction projects in the Motor City. The mayor’s order went into effect on November 1. It requires that Detroit city residents must comprise at least 51 percent of the workforce on all construction projects funded, in whole or in part, by the City of Detroit. The directive also applies to projects funded by state or federal funds, to the extent permitted by law. In addition, Detroit residents must perform 51 percent of the hours worked on city projects. Construction companies out of compliance with the directive could face financial penalties in the form of a monthly fee based on the percentage of Detroit resident hours utilized on the project. Failure to meet the requirements is considered a breach of contract and it may be terminated. At the option of the City of Detroit, any firm not in compliance - ranging from the developer and general contractor to the sub-contractor or lower-tier contractor may be barred from doing business with the City of Detroit for one year.
Planning Conference and Winter Getaway Scheduled Mark January 17-20, 2008 on your calendar. Those dates mark the sixth year that the Park Place Hotel in Traverse City will host the Southeastern Michigan Chapter’s planning conference and winter getaway. This is a great opportunity for members to participate in planning the chapter’s agenda, direction and events for 2008. It is also gives members a chance to socialize and take advantage of all that the Traverse City area has to offer. Plans for our guest speaker and dinner at Boons’ Long Lake Inn are being finalized at this time. Once again ABC has secured discounted hotel rates for those who want to book early. So beat the winter blahs and plan on attending. H
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Western Michigan ABC Western Michigan going back to school
John Doherty, president/CEO of the Western Michigan Chapter of ABC recently visited two 11th grade economics classes at Kelloggsville High School in Grand Rapids. He introduced the students to careers in construction and to ABC.
Western Michigan staff advises Grand Rapids Schools on Curriculum In November, the Grand Rapids Public Schools unveiled its School of Construction located at Union High School. The district held an open house for parents, students and other invited guests to view the new classroom and lab specifically designed for the construction program. Attending was John Doherty who serves on an advisory committee for the school’s trade education training effort. The program gives high school students, at all grade levels in the Grand Rapids School District, an opportunity to participate in a practical construction related curriculum. The students utilize the Contren Learning Series curriculum developed by the National Center for Construction Education and Research (NCCER). This is the same curriculum used by ABC and Grand Rapids Community College in the apprenticeship training programs. Course work completed in the School of Construction earns credit against modules needed to complete an apprenticeship. Another interesting aspect to the program is its partnership with Habitat for Humanity. Students practice their construction skills in the teaching lab building Habitat for Humanity homes and sheds. Once completed, they are transported to home sites for assembly. H
U.S. Immigration Services Issues New Form Requiring Employers to Verify Citizenship Employers
were required to transition to the revised Employment Eligibility Verification Form (I-9) by December 26 to avoid fines and penalties. The U.S. Citizenship and Immigration Services (USCIS) ruled that employers must begin using these newly revised employment forms and complete a Form I-9 for each employee hired in the United States. The revised form, which was unveiled last month, removes five documents from the list of immigration documents that employees had previously been allowed to present to prove identity and added one new document. The five documents eliminated were the: Certificate of U.S. Citizenship (Form N-560 or N-561); Certificate of Nationalization (Form N-550 or N-570); Alien Registration Receipt Card (Form I-151); an unexpired Reentry Permit (Form I-327); and an unexpired Refugee Travel Document (Form I-571). The new form added to the list of acceptable documents is: an unexpired Employment Authorization Document (I-766). Visit www.abcmi.com to download a copy of the new Form I-9 and a question-and-answer sheet from USCIS on the new form. 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 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 1-800-288-4248. www.abcmi.com
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coordinated the effort to install a bathroom, laundry room, new furnace, water heater, washer and dryer and a complex 220 electrical service. The project started at the beginning of April and was completed within the month. “The Thurmond family was overwhelmed with the effort, the tradesmen who worked on it, and the companies that involved themselves in it. It was one of the most amazing experiences they have had in their lives – to have this wonderful work done for them,” Luke emphasized. “No one had ever done so much for their family. The transformation in their basement was a mini ‘Extreme Makeover.’ The contractors were there to meet the family. It was such a gratifying experience,” Luke said. Luke noted that even in a tough economy he was able to get volunteers, donated materials and labor at a time when many construction businesses were hurting. “Yet there is something special in contributing. I sincerely thank those who donated money and time to this effort. For those who helped, please know that you have made a very important difference in the lives of others. Your selflessness and generosity has not gone unnoticed. The Thurmonds are now benefiting from the generosity as they spend their first Christmas in their newly remodeled home. “If you would still like to donate to the family, please know that it’s not too late. Whether you give your time, talent or money, it will be very appreciated,” Luke emphasized.
One of the many tradesman that made the Thurmond family remodeling possible.
Living with EB The sufferers of EB are also known as the “Butterfly Children.” Their skin is as fragile as a butterfly’s wing that can blister at the slightest touch - even from a mother’s cuddle. Normal day-to-day life can cause constant pain and scarring which, in the worse forms, leads to eventual disfigurement, disability and often, early death. EB is not a virus — you are born with it. One of the biggest advocates to emerge in the fight against this disease was Princes Diana. She raised the profile of children suffering
COMING SOON – Your opportunity to advertise in the 2008-2009 ABC of Michigan Membership Directory. One ad, in this one publication, puts you in the offices, briefcases and trucks of every ABC member across the state – now that’s value! The 2008-2009 Directory will feature an all new Buyer’s Guide section for easy reference. Special Early Bird deal – purchase your ad before February 1st and receive a 10% discount on any size ad. Contact Greg O’Neil at abc. org.ads@sbcglobal.net today to take advantage of this great deal. Make sure you don’t miss this valuable opportunity – your competitor won’t.
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from EB after reading an article about it in a women’s magazine. The publicity created by the magazines article caused Princess Di to take action that greatly benefited many people. According to Luke, because of her involvement Princess Diana became invaluable in raising the profile of what was then a very small charity, DEBRA. Even though she is no longer with us, through her participation and support the charity has grown and so has the awareness of the “Butterfly Children.” Steve Young of the San Francisco 49ers has also helped the cause. He has promoted two fundraising events, and through the team’s “Pledge Program,” donations are given to the “Butterfly Children” each year. “I have great respect for Steve Young and the late Princess Diana because they became involved in a charity that is unlike any other in the world,” Luke noted. Now it is our turn. Take time to learn more. You can get more information through DEBRA, the national organization for EB (http://www.debra.org). In Michigan check out Wayne-Westland Friends of EB at http:// www.wwfeb.org/ “Our hope is that ABC, through this effort, will help increase awareness of this disease and that, in the future, we can help more families like the Thurmond family throughout the Great Lakes state,” Luke concluded. H
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complete the United Solar project including Hitachi, Tahoku Seiki Industries Ltd., NPC Corp. and Eight Kogyo Co. In addition to United Solar, CIC has been working with Gas Recovery Systems, a company based in New York State that is recapturing methane fuel from landfills. “They burn it to produce electricity and we have constructed the piping systems needed to process this alternative energy source,” he said. “To complete this project we invested in a computerized automated orbital welding system to help ensure the high quality and weld consistency required to meet the customers’ expectations.” “Whenever we get a chance, we add technology so we can be diverse and do different projects similar to the one with Gas Recovery.”
Kevin Campbell and William Bowman prepare to lift and position a section of the lamination oven line.
Developing Solid Training Programs We believe that one of the keys to our success is having a staff that can adapt to different projects. “We are project oriented. We need skilled people who are flexible, are willing to learn, and take pride in doing the job right the first time,” Campbell emphasized. As part of its construction efforts, Campbell Industrial makes sure that the company is properly insured for every project and the different exposures that it might bring. “We hope that we never have to use our insurance policy but we always want to be prepared so that if there is ever a problem we can limit the overall impact on our customers” said Kyle Campbell. CIC’s hand picked contractors and subcontractors enhance their capabilities without diminishing quality. “In fact, on some jobs it’s a little hard to tell who works for whom. We all share in the commitment to the customer to provide the workmanship and time sensitive performance that is necessary in today’s business environment,” he said. “We are a licensed mechanical, electrical and boiler contractor, have certified pipe welders on staff but what we really enjoy doing is rigging. We have also just expanded our in house steel fabricating operation to allow us to offer additional services to our customers. To ensure their quality standards, the company completes its training on site. Kyle Campbell said CIC’s biggest challenge is to
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always meet our own high standards. “Our name means a lot to us and we have worked hard for 60 years to get it to where it is now. When we go looking for new employees, we want people who want to be part of a family company and want to learn.” The company has been directly involved with the ABC Southeastern Michigan Chapter to help with the association’s brand new training center, which will help to train the next generation of construction workers. “We want to be part of developing the skill centers for the next group coming up. Not everyone is cut out for a four year liberal arts college degree. There is something of value in technical trade education. Stressing the certification of a technical degree is critical to the function of any free society. Technical education is a good path to a good life,” Campbell concluded. H
the plans on behalf of their collective membership and thereby offer significant savings to small and large companies alike. Although the larger organizations may be able to realize some savings on their own, their participation in an association program may allow them even greater savings. Lastly, if the program is offered by a fuel company that is already a discount provider, you will be saving more than if you participated in the same program with a full cost retailer. Although each of these control options will save only a few pennies a gallon when they are added together for all your vehicles and for each gallon of gasoline you purchase for each vehicle the savings really begin to add up. You will benefit from the fuel consumption of other companies, as well as your own, to save on your price per gallon. H
Leon Parrish Brad Parrish 517.639.4656
1284 E. Chicago Rd, Quincy, MI
www.abcmi.com
49082
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based upon falsified documentation, it could possibly result in the employer being guilty of a felony. In addition, the bill would establish penalties for repeat violators that include suspending or revoking their license to do business in Michigan; levying fines of up to $250,000; or even, imposing prison terms of two to five years. Of further concern is that Michigan is one of only eight states in the entire county that issues a state driver license to illegal immigrants. This is especially disturbing because a vehicle operator license is an acceptable form of identification when filling out a Federal I-9 form to verify the status of an employee as legally authorized to work in the United States. As such, an employer could even be breaking the law for accepting a state issued driver license as proof of legal status. Clearly this is an important issue to ABC and the construction industry. ABC also will be working with legislative leaders in both parties to fight for common sense comprehensive immigration reform that doesn’t punish employers for the misdeeds of a job applicant, as well as working with ABC National on this important issue at the federal level.
ABC Backed Changes to State Prevailing Wage “Violator” Listings Implemented
This past June ABC of Michigan outlined opposition and concern over the state of Michigan’s launch of a new website that identifies those contractors and subcontractors who have violated the state’s Prevailing Wage Act. The Wage & Hour Division of the Michigan Department of Labor & Economic Growth (DLEG) says it developed the site “for contracting agents, who award construction contracts
for public schools, community colleges, and universities and other state-fund construction projects.” The listing, which has since been updated, includes the names and addresses of contractors and subcontractors the division has found in violation of Michigan’s prevailing wage law based on complaints from individuals and third parties. ABC’s primary concern was that the list did not differentiate between those firms who knowingly and willingly violate the prevailing wage law on a continual basis, from those contractors who mistakenly classified the wage of an employee and were therefore considered to be “convicted of irresponsible violations” of the Michigan Prevailing Act. ABC of Michigan opposed the grouping of contractors who have met their obligations under the act with those who remain in violation. The concern has always been that the list would then be used as a tactic by organized labor to disparagingly mischaracterize responsible Merit Shop firms in an attempt to blackball such firms from public contracting opportunities. After a series of meetings on the issue and face to face discussions with the administration and Wage and Hour Division, ABC backed changes were finally implemented this month to segregate between (1) those contractors who have been found in violation of the Act by not paying the prevailing wage and who still owe their employees for the unpaid prevailing wages; and (2) those contractors who have met their obligation and any wages that were found due. ABC of Michigan remains committed to not only promoting these changes, but most importantly will continue to advance our position that supports a repeal of the prevailing wage act altogether in the State of Michigan. H
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We would like to take the time to thank you for being a part of our 40th Year as a company. Over the years, we’ve served a diverse group of commercial, industrial and community clients. D&D Building’s employees have worked with several of the leading businesses in the community and throughout the Midwest. Thank you for letting us serve you.
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customer service, and above all else, training and education. “Welch Tile & Marble is a leader in all of these categories,” Bettiga stressed. Welch has been selected to represent the association as a member of numerous national standards committees. His company is one of the more highly involved members and they have won installation and best practice awards presented to them at national shows. Number One, a quality ceramic tile project starts and ends with a beautiful installation. Tile Installation is a craft, and nothing will do more to harm the industry than a poor installation. Welch Tile makes sure they do everything possible to insure their installations are above the standard and their quality has not gone unnoticed. H
Construction Forms Website Can Boost Efficiency and Bottom Line Associated
Builders and Contractors, along with 19 other construction-related associations have worked together to launch ConsensusDOCS -- a new online service where ABC members can search for and purchase more than 70 standard construction contracts and forms. “We are excited to offer ConsensusDOCS as a great new service and benefit to all of our members,� said Kirk Pickerel, ABC National president and CEO. “This is another example of a ‘best practice’ offered by ABC to help our members increase their efficiency and bottom line.� ConsensusDOCS is unique because each document was drafted to reflect the project’s best interests, rather than a single-party interest. These cutting-edge contracts and forms address all project delivery methods from design-bidbuild through a new innovative collaborative agreement, as well as emerging issues such as electronic communications and building information modeling. ABC members are eligible for discounted rates on the ConsensusDOCS contracts and forms. To access the ConsensusDOCS website, go to www.abc.org/DOCS H
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342 W. Saginaw Road Sanford, MI 48657 Phone: (989) 687-7336 Fax: (989) 687-5450 E-mail: jdplg_2000@yahoo.com Contact person: David L. Hartshorn
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ABC ad
Kozakiewicz Elected Chairman of ABC of Michigan Board of Directors D a n i e l Kozakiewicz, president of Three Rivers Corp. in Midland, has been elected chair of the Associated Builders and Contractors of Michigan (ABC) Board of Directors for 2008. Kozakiewicz’s company is a full service general contractor and design/ build business specializing in institutional facilities, commercial and industrial construction, mechanical contracting, process piping, and building maintenance services. “I am honored to serve as the 2008 board chair of ABC of Michigan,” he said. “ABC has a long tradition of leading our industry and I look forward to advancing the association’s commitment to business development, governmental relations and member services.” Kozakiewicz is a graduate of Ferris State University and Lawrence Technological University and has degrees in construction engineering and technology. He has also served as chairman of the board of directors for the Saginaw Valley Chapter of Associated Builders and Contractors and on the board of directors for Contractors Owner Safety Team and Midland Tomorrow, the Ferris State University construction and technology management committee, the College of Business and Management Advisory Board at Saginaw Valley State University, the Midland Planning Commission, the Diocese of Saginaw Building Commission and the Lake Huron Council of the Boy Scouts of America. Kozakiewicz joined the ABC of Michigan Board of Directors in 2004 and was the 2007 vice chair. Kozakiewicz will guide a board that provides policy direction to the Lansing-based statewide trade association representing general contractors, subcontractors, material suppliers and related firms across Michigan. H
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A Health Care Plan Built For You! • Pre-set, Competitive Rates • Less Than 7% Rate Increases • No Health Questions • Great Coverage—6 Networks • Quick & Easy Enrollment • New H.S.A. Plan Available • Free COBRA Administration For more information contact your local ABC Chapter Director Central Michigan Chapter (517) 394-4481 Southeast Michigan Chapter (248) 399-6460 Saginaw Valley Chapter (989) 832-8879 Western Michigan Chapter (616) 942-9960
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3400 Centennial Drive Midland, MI
Phone (989) 496-2076 Fax (989) 496-3960
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Advertiser’s index aIS Equipment............................................................................................................................. Page 8 answer heating & COOLING................................................................................................. page 2 brandle roofing...................................................................................................................... page 18 C.T. Electrical............................................................................................................................. page 6 capital steel............................................................................................................................... page 14 Crowe chizek.............................................................................................................................. page 11 D & D Building............................................................................................................................. Page 16 Genesee-bay constructors................................................................................................ page 9 J & D Plumbing & heating....................................................................................................... page 17 J.E. Johnson, Inc.......................................................................................................................... page 2 Meadowbrook............................................................................................................................ Page 18 Molnar Roofing........................................................................................................................ page 17 P&K Steel Service....................................................................................................................... page 19 parRish excavating................................................................................................................. page 15 rci electric.................................................................................................................................. page 2 Regency group................................................................................................................. BACK COVER saginaw bay underwriters................................................................................................ page 17 skilled trades............................................................................................................................. page 15 three rivers corporation................................................................................................... page 10 universal insurance.............................................................................................................. page 13
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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