VOL. 62 ISSUE 1 JANUARY2021 • GUAM CONTRACTORSʼ ASSOCIATION
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TABLE OF CONTENTS
10
16
CONSTRUCTION NEWS BULLETIN
JANUARY
2021 8
S.A.M.E. UPDATE
10
FEATURE STORY
14
SMALL BUSINESS NOTES
15
CONSTRUCTION HEADLINE
16
NAWIC NEWS
18
NEWSLINE
20
REPORTS/ INFORMATION
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475 Mendioka Street Dededo, Guam 96929 Tel: (671) 632-5160 | sales@midpacfareast.com | www.midpacfareast.com
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INTERNATIONAL
EDITORIALS
CONSTRUCTION NEWS BULLETIN
THEDIRECTORS
THEEDITORIALS
THETEAM
PRESIDENT James Martinez Guam Contractors’ Association
Guam Contractor’s Association (GCA) in conjunction with Adztech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA.
PUBLISHER: James Martinez
CHAIRMAN Peter Errett Hawaiian Rock Products VICE CHAIRMAN Bill Beery Tutujan Hill Group
While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA or Adztech of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, production team, staff, GCA members, GCA Board of Directors and advertisers.
SECRETARY/TREASURER Grace Jacot SET Pacific PAST CHAIRMAN Jessica Barrett Barrett Plumbing CONTRACTOR DIRECTORS: Don McCann Black Construction Corporation
For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at adztech@teleguam.net.
Shoja Rezvani Contrack Watts Contractors John Sage Pacific Rim Constructors Inc.
Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 506 Mariner Ave., Barrigada, Guam 96913
Dan Soriano Granite Construction Lucia Wood APTIM ASSOCIATE DIRECTORS: Jose Garcia First Hawaiian Bank
To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671) 647-4840/41 Fax: (671) 647-4866 or Email: gca@teleguam.net. www.guamcontractors.org
Mark Cruz MidPac Far East Patty Lizama Pacific Isla Life
AD SALES: Jaceth Duenas PRODUCTION: Jason Davis Geri Leon Guerrero Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: Pete Diaz RD Gibson Rebecca Gale GCA STAFF: Desiree Lizama Elaine Gogue Francine Taitague Trevor Cruz COVER: Taking a look at projects and growth this past year of challenges on Guam’s military bases.
Postmaster. Send address changes to Guam Contractors’ Association, located at 506 Mariner Ave., Barrigada, Guam 96913
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PRESIDENT’S LETTER Hafa Adai GCA Members: Happy New Year! Good riddance to 2020. What a relief to get over a very challenging year in 2020. I wish prosperity and good health to all our members, their employees and family. The new year for GCA brings special meaning. We are having a fresh start in 2021 with the relocation of our offices to our new home in the newly acquired and renovated GCA Trades Academy Training Center located in Tiyan, Barrigada Guam. We are very excited for the move and to starting the new year in a brand-new facility. An announcement is forthcoming on the grand opening of the facility in the near future. I appreciate your patience and understanding during this transition and we are looking forward to servicing our members at full capacity again. While we all want to forget 2020 (yes, the year of the Corona Virus Pandemic) the construction industry had remained stable and operational despite a couple setbacks that shut us down temporarily. More good news came to the industry when the 2021 NDAA became law on January 1, 2021. This provided an appropriation for Guam military construction in the amount of $664M for fiscal year 2021. In addition, an exemption to the H2B program, allowed foreign skilled workers to be hired, not only for military construction projects, but also for civilian (non-military) construction projects as well. This provision should provide relief, especially for our smaller contractors to be able to hire a supplemental workforce under the H2B program. More good news came a little later, when it was announced that the Department of Homeland Security (DHS) put back the Philippines on the approved list of countries which can avail of foreign skilled workers under the H2B program. After a rough year last year this news was certainly the silver lining for the industry. I believe this will raise the confidence level for our contractors to petition for H2B workers. This does not guarantee an approval, but the chances to get these petitions approved is greater, especially with the NDAA provisions. While this is all great news for the industry, we must not be complacent about training our local workforce to sustain our industry when we return to normal levels of construction work. Now with the new GCA Trades Academy Training Center, our capacity for training has increased with more state-of-the-art classrooms and shop area. We are looking forward to the completion of the second building that houses additional classrooms and a large shop area for hands-on practical work. 2021 is looking to be a start of a great year for GCA and the GCA Trades Academy and we hope that this translates to our members and our industry as well. We have great events planned for this year barring any restrictions and we hope to engage with all our members in these events to create opportunities for networking among our members. We are also looking forward to holding our monthly general membership meeting once our hotel partners are ready to open for large gatherings. There is still uncertainty for what is to come, but we remain optimistic and hopeful for a great year in 2021. Dångkulu na si Yu’us ma’åse’ James A. Martinez President Guam Contractors Association
Guam Contractors Association
6 | JANUARY2021
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S.A.M.E. UPDATE
CONSTRUCTION NEWS BULLETIN
Society of
NEWSLETTER JANUARY 2021
American Military Engineers
ANNOUNCMENTS SAME Guam Post Charlie Corn Scholarship Applications for 2021-2022 have been released. Deadline: 26 FEB 2021 Check out our Post website!
DECEMBER EVENT RECAP:
2020 CAN-STRUCTION FOOD DRIVE
CAN-struction Photo Entries
SAVE THE DATE
The Challenge: Design and build structures made entirely from canned foods.
18-20 FEB 2021 ChST Virtual Career Transition Workshop SAME National Event See www.same.org for National calendar of events. 21 - 27 FEB 2021 Engineers, Architects and Land Surveyors Week Seeking volunteers to conduct for high school presentations to promote our industry! Contact Diane Pangelinan at 477-8326 or Kina Harris at 472-6792.
Photo Contest: The winners received gift cards sponsored by the SAME Guam Post and AIA Marianas. Congratulations to the winners! Winner: Pete Diaz
Winner: Jecelia Llegado
Canned Food Donation Drop-off All canned foods collected where donated to the
23 FEB 2021, 2:30 pm Engineers, Architects and Land Surveyors Week Proclamation Signing Governor’s Office
Archdiocese of Agaña Ministry to the Homeless
25 FEB 2021 Joint General Membership Meeting NAVFAC Marianas and OICC MCM Construction Program Update Open to all members organizations in the Guam AEC Industry. 18 MAR 2021 TBD SAME Guam Post General Membership Meeting Virtual Meeting Upcoming January Meeting
MAIN PRESENTATIONS
Port Authority of Guam & Small Business Administration
Special Thanks!!!
The following Sustaining Members and companies hosted drop off locations and donated loads of canned foods:
21 JAN 2021
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C.O.R.E.
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CLOSING ON A YEAR OF
GROWTH & MATURITY
by: R.D. Gibson
CONSTRUCTION NEWS BULLETIN
Many lessons were learned in 2020; a year we dare not revisit, reminisce, or remember. Last year was a tough year to write anything because at the forefront of everybody’s minds was COVID-19. Rightly so. To date, according to the Centers for Disease Control website’s data tracker, there have been over 23 million cases of Coronavirus in the United States of America, and over 300,000 deaths as of January 15, 2021. In a year that many thought was going to bring so many opportunities, many were quarantined at home, mandated to wear masks, distance socially from their family and loved ones, work remotely - telework, reorganize strict work safety policy, but, above all, face the uncertainty of a silent and invisible foe. The uncertainty was as pervasive as the virus itself spreading throughout the community. The lockdowns and government restrictions throughout the island proved to be difficult for many. It’s been nearly a year of a slow crawl toward the end of this seemingly never-ending tunnel. As arduous as it may have seemed, what 2020 taught a lot of people was the concept of grit and perseverance. Creatures of habit, society as a whole had to reconfigure and reevaluate the goals they were working toward manifesting as we moved into a new decade. Grit and perseverance are concepts many educators try to teach in school. In a world of instant gratification, it has become increasingly more important to underscore, bold, and italicize the need to push through one’s own obstacles to realize the rewards of long-term goals. Angela Duckworth, founder and CEO of Character Lab, researched the concept of grit and perseverance in students. Her non-profit points to helping students thrive. According to Duckworth’s website, “Grit isn’t talent. Grit isn’t luck. Grit isn’t how intensely, for the moment, you want something.” More, the website describes how talent and luck matter to success, but don’t guarantee grit. Additionally, it describes how grit is about the ‘ultimate concern’ - a goal that is fueled by passion and even when faced with barriers - “even when progress toward the goal is halting or slow” - the goal is still at the forefront. If there was ever a chance for grit to surface and manifest itself in the industry, it was in the midst of the chaotic unpredictability that shook the entire world. In the same vein, there was a lot of work being done behind the scenes to ensure one of the biggest construction projects in the island’s history was to persevere forward. The Officer in Charge of Construction (OICC) Marianas Corps Marianas is currently overseeing over a dozen projects for the Guam Military Buildup.
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FEATURE STORY
According to NAVFAC Marianas Commanding Officer Captain Tim Liberatore, “NAVFAC is estimated to deliver approximately $694 million in military construction in Guam for fiscal year 2021.” The number comes in the form of more than 20 Department of Defense construction projects like wharf improvements and bachelor enlisted quarters. According to Officer in Charge of Construction Marine Corps Marianas Commanding Officer Capt. Steven Stasick, there are several projects under construction for Marine Corps Base Camp Blaz, Andersen Air Force Base, and Naval Base Guam. These include, MCB Camp Blaz Main and Commercial Gate, MCB Camp Blaz Main Communication Lines, Aircraft Maintenance Hangar at Andersen AFB, Live Fire Training Range Complex at Andersen AFB Northwest Field, and Urban Combat Training Center at Andersen South. Capt. Stasick continued stating many more United States Marine Corps projects are in the design and planning phases. Capt. Stasick stated, “the buildup of Marine Corps Base Camp Blaz continues as planned.” More pointedly, he mentioned 80-percent completion of the the MCB Camp Blaz Utilities and Site Improvements project, and the completed facilities at Andersen AFB North Ramp are already being utilized, even the first Aviation Maintenance Hangar. There continues to be construction on other projects, including the Corrosion Control Hangar at Andersen AFB, Aviation Squadron Logistics Facility at Andersen AFB, a second Aviation Maintenance Hangar, as well as the Gym and Dining Facility. He added, “the Mason Live Fire Training Range Complex at Andersen AFB Northwest Field is nearly 70 percent complete.” More, a handful of the projects listed above are on schedule for completion in 2021, with two more projects having been awarded in fiscal year 2021 “and another 17 are in process for award.” Capt. Liberatore pointed to the unprecedented times through which we have all been living, but stated, “though we were presented with challenges due to COVID-19 restrictions and guidelines, we were able to close out the year successfully.” He explained how military construction projects went as scheduled with all safety protocols in place. Additionally, he commented how though there was a COVID-19 cluster COVID-19 at one of the contractor barracks, and even with the mandated quarantine, the project schedule remained unaffected. This was largely due to the safety and health protocols that the employees - military and civilian contractors - followed. Wearing face masks, maining physical distance, and hand washing have become ‘new normal’ protocols across industries, and “following these mandates have allowed us to continue our projects on time,” stated Capt. Liberatore.
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FEATURE STORY
CONSTRUCTION NEWS BULLETIN
However, he also alluded to the pandemic causing delays due to restriction on travel, the duration of the deliveries of materials, and an increase of health and safety protocols. More, he commented on how as demand for construction increases in Guam, there will be a noticeable competition for material, labor, and equipment. “Our challenge will be to find innovative ways to control construction costs.” But, he is also confident that NAVFAC Marianas is prepared to address these obstacles.
These include the preservation of the Sabånan Fadang burials, the construction of fences for the protection of 400 acres of forest, the relocation of rare flora and fauna, the proper investigation and reservation of archaeological areas, facilitated access to construction sites for harvesting medicinal plants and ‘collect culturally-important timber’, preparation of artifacts to be transferred to a future Guam Cultural Repository, and road improvements to Route 3A, among others.
Stasick spoke about the concerns surrounding the successful, timely completion of construction on large-scale projects. “However, these challenges can be mitigated through sustained collaboration and extensive joint effort across our stakeholder team throughout the build-up process,” he emphasized. This is also manifest in the five-year, $990M multiple award construction contracts for these projects for the build up. “NAVFAC is also making a deliberate effort to forecast and communicate upcoming projects while ensuring that solicitations are spaced out as much as possible to grant our partners in the construction industry adequate time to prepare and submit high-quality proposals.”
Stasick said these are “continued efforts to support responsible construction and environmental stewardship as part of One Guam and Green Guam pillars allows for a sustainable approach to development and demonstrates the DoD’s respect for the land, its people and culture.”
Capt. Stasick reflected on how 2020 “was a year of growth and maturity”; stating there were not any significant setbacks. He commented how OICC Marine Corps Marianas continues to prepare staff for when the construction period reaches its busiest. All the while, all of the projects remained active, even operating during the pandemic. “We continue to work closely with our partners in the construction industry to ensure safety and health of the workforce was always our top priority,” he added. More, Stasick commented how projects were released continually for bid and awarded with no interruptions. “This was possible through an extensive team effort from all our partners involved throughout the construction process.” For Stasick, a lot of the lessons revolved around collaboration with community partners and regulators - all working to ensure the successful progress and completion of MCB Camp Blaz. More, it’s been a learning experience seeing the purposeful use of industry knowledge and best practices, and applying them to Defense projects, which “reduces projects timeline and costs, thereby saving the taxpayer money and meeting DoD mission requirements.” Additionally, Stasick cites numerous victories last year as build up construction projects moved forward. He highlighted community collaboration and stewardship in Guam through historical, cultural, and environmental preservation projects. The projects brought together MCB Camp Blaz, US Fish and Wildlife Service, the Guam Environmental Protection Agency, the Guam State Historic Preservation Office, Joint Regions Marianas, the Department of CHamoru Affairs, and the Guam Department of Agriculture.
12 | JANUARY2021
Liberatore began pointing to the obstacles that year 2020 presented to many. He continued, “NAVFAC Marianas is fully prepared to successfully execute current and future military and Department of Defense construction awards and projects this new year.” He added, “Our dedicated team of military and civilian personnel were able to adapt and make necessary adjustments to fulfill our mission of delivering facility, construction, expeditionary, acquisition and business solutions that enable the mission objectives of our supported commands.” Stasick added, “2021 promises to be one of the best years yet for OICC Marine Corps Marianas...We will ensure that we continue to build responsibly by working hand-in-hand with our construction partners, local and federal agencies and the Government of Guam and take deliberate, collaborative measures throughout the construction process.” Victories and obstacles happen every year - an inevitable part of life, right? This piece started discussing a year from which we can only learn; that we can humbly recognize as a time in history where as human beings we were not in control of much of anything. But, what we were in control of, we could also use as a learning opportunity. In that, we practice true grit - identifying a goal and seeing it through its lightest and darkest moments. Along the way we discover just how gritty we are; looking back at the highs and the lows and seeing what worked and what did not, celebrating the victories - however small, along the way.
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SMALL BUSINESS NOTES
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join our SB Community! • The GCA Small Business Committee supports small business members of the association to ensure their voices are heard and needs are met within GCA capabilities. • Do you have an issue or concern that we might be able to assist with? • Do you have an idea or suggestion that may benefit our small business community?
L-R: James Martinez, Joe Roberto, Adam Baron, Bill Bernardo, Theresa Crisostomo, Tom Roberto, Jaylene Kent, Gerardine Mendiola, Jane Ray, Philip Leddy, Ken Lujan.
HELP US HELP YOU BY JOINING US AT OUR MONTHLY MEETINGS OR CONTACT: Lucia Wood (Chair) Theresa Crisostomo (Vice-Chair)
(671) 777-8425 lucia.wood@aptim.com (671) 588-5972 theresac@jwsguam.com
GUAM PTAC FREE Live Webinars 1/21 2021
1/28 2021
Federal Contract Opportunities Beta.sam.gov is the portal for Federal Contract Opportunities. The Guam PTAC will show you how to setup an account and how to use the search filters to ensure you do not miss any opportunities.
Marketing to the Federal Government The government buys products and services differently than the private sector. The Guam PTAC will discuss marketing strategies, essential documents, and how to get your company on “the list”.
FREE Live Webinars Every Thursday in January!
The Guam Procurement Technical Assistance Center (PTAC) is offering FREE webinars to the public for January 2021. Webinars run from 10am-11:30am and will be conducted via Zoom. Links to the live webinar and the webinar evaluation will be emailed to all registered attendees 15 minutes before the start of the webinar. Register at: guamptac.ecenterdirect.com For more information, contact the Guam PTAC at (671) 735-2552 or visit www.guamptac.com
Guam SBDC Training Schedule GUAM: How to Prepare a Financial Plan Friday, January 22, 2021 • 8:30am – 11:00am
Register at: pisbdcn.ecenterdirect.com/events/ For more information, contact: (671) 735-2590 14 | JANUARY2021
A financial plan is the heart of any startup and existing business. It is a culmination of the income statement, the cash-flow projection, and the business’ balance sheet. The financial plan is a way to look at a business through a financial lens, which is the view most investors or bankers prefer. When preparing a financial plan, it is not mandatory that you be a mathematician, but you need to understand how the numbers affect a business. This training will provide a foundation on both the financial reports and methodology to develop the numbers for those reports.
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Philippines Re-eligible to Participate in H-2B Nonimmigrant Worker Program Hagåtña, Guam - Understanding Guam’s growing need for skilled labor, the Department of Homeland Security has designated the Philippines as eligible to participate in the H-2B non-immigrant visa program.
of Defense and the Department of Interior, as well as the advocacy of Delegate San Nicolas, the Department of Homeland Security acknowledges the necessity of the Philippine labor force for our growing economy.”
“Since we began office, Josh and I stressed the importance of skilled labor from the Philippines to our growing economy. Even prior to the removal of the Philippines from the H-2B nonimmigrant program in January 2019, Guam had zero approvals for civilian H-2B petitions in 2018—a significant decrease from a 95% approval prior to 2015,” said Governor Lou Leon Guerrero. “However, with the help of our federal partners in the Department
“The distinction of ‘inside the fence’ and ‘outside the fence’ does not and cannot work for Guam. This Administration’s One Guam approach has always argued that our economic stability is a national security issue. As we begin to address the economic effects of the COVID-19 pandemic, Lou and I are satisfied with this action and remain optimistic in our recovery,” said Lieutenant Governor Josh Tenorio.
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RESOLUTION IDEAS: NAWIC GUAM OFFERS OPPORTUNITY TO INVEST IN YOURSELF PROFESSIONALLY THIS YEAR… Happy New Year, it’s (finally) 2021! The last year was challenging to say the least, but we have many lessons learned and have the opportunity to transition those lessons to goals and achievements in the year ahead. One takeaway lesson especially accentuated is the importance of continually investing in yourself and your career. A career in construction offers a multitude of opportunities and benefits, including a level of job-security as the industry has proven its ability to withstand and progress during unprecedented adversity, like a pandemic. Furthermore, the construction industry is continuing to evolve in positive ways to diversify its workforce and NOW is an opportune time to explore construction career opportunities. The National Association of Women in Construction (NAWIC) Guam is a local industry association with a mission to encourage, develop and advance all women in the construction industry. NAWIC Guam provides support and serves as a valuable resource to its members by building their technical skills, growing networks and inspiring leadership. One exclusive professional development resource NAWIC Guam offers its members are recognized industry certification programs through the NAWIC Education Foundation (NEF). These professional credentials offered by NEF distinguish individuals by demonstrating their specialized knowledge and skills, which adds value to both the employee and the employer. Here’s a few of the professional certification programs currently offered through NEF: • Construction Industry Specialist (CIS) is an introductory certificate program created for those individuals wishing to increase their overall knowledge of the construction industry, includes usage of the Construction Specifications Institutes’ MASTERFORMAT® • Construction Industry Technician Program (CIT) provides an extensive overview of the construction industry and its processes incorporating the latest changes in the Industry. • Estimating and Scheduling Practitioner (ESP) is a program that provides a specialized knowledge on estimating general and job overhead, including preparing estimates for major trades and project schedules utilizing the critical path method and precedence schedules All certification programs are recognized as a quality education program by the American Council for Construction Education (ACCE) NAWIC Guam also provides a variety of trainings, seminars, webcasts to its members and hosts events, like its Block Kids Building Competition to encourage early interest in STEM and the construction industry and awards scholarships to support individuals pursuing higher or technical education in industry-related fields. Read what our members say about the benefits and advantages they have gained through their membership with NAWIC Guam: Jaylene Kent, Ph.D., C.I.T., President, Isla Coatings and Roofing Supply Chartering President (2012) & Active Member, NAWIC Guam On Construction Industry Certification Program -Construction Industry Technician (C.I.T.) “This course facilitated my making a mid life career change. As a new Flooring Contractor and construction business owner, I had minimal knowledge of the construction industry… It brought knowledge and confidence to my business understanding and industry specific knowledge.” On Being a Member of NAWIC Guam “Having an opportunity as a company and as a woman to share, to donate, to mentor, to contribute, to meet, to support, to participate in all manner of ways with other women in our industry, brings a tremendous sense of meaning, satisfaction, and happiness to my personal and professional life. I am filled with gratitude and pride to have these kinds of opportunities through NAWIC Guam #381.”
Christen Clark, C.I.T. Project Controls Engineer, Black Construction Corporation Secretary (2020-21), NAWIC Guam On Construction Industry Certification Program -Construction Industry Technician (C.I.T.) “Entering the industry with only a high school diploma, I received my construction education on the job …I thought wouldn’t it be great if my on the job education could somehow be formalized. After I joined NAWIC and learned about the certifications, I thought “There it is”. Getting my CIT was a personal confirmation of my knowledge gained while working in construction. I was so excited in fact, I signed up for the CDT, and I plan to take my test soon.”
Monique Baysingar, CIT Underwriting Manager, Pacific Indemnity Insurance Company Chartering & Active Member, NAWIC Guam On Construction Industry Certification Program -Construction Industry Technician (C.I.T.) and other NAWIC Professional Development resources “Being a member of NAWIC has provided me with numerous professional development opportunities from Profit Mastery, to Franklin Covey’s 7 Habits and Time Management to the NEF [certification] courses. While I myself do not work in the field of construction, earning the C.I.T. designation has given me a solid basis from which to communicate with our contractor clients. I found the information learned from that course of enough value that I have registered for the newest NEF course Construction Document Technician (CDT).”
All women working in construction are eligible for membership, including women builders in the trades, project management, marketing, administration, and executive leadership. Women in related industries, who work on construction related business, such as finance, legal, insurance and other complementary industries, are welcome as well! JOIN NAWIC GUAM CHAPTER 381 TODAY! Contact us at nawicguam@gmail.com or DM us on Facebook (Nawic Guam) or Instagram (@nawicguam). 16 | JANUARY2021
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NEWSLINE
CONSTRUCTION NEWS BULLETIN
NEWSLINE SBA Releases New FAQ on ABC-opposed PPP Loan Necessity Questionnaire On Dec. 9, the Small Business Administration published FAQ Number 53, addressing why certain borrowers will receive Paycheck Protection Program Loan Necessity Questionnaires. The SBA also publicly released for-profit and nonprofit questionnaires. According to the FAQ, SBA is reviewing all loans of $2 million or more and the questionnaire is part of this process. The questionnaire is due 10 business days after a borrower receives it from their lender.
ABC has expressed concerns to Congress and the administration about the onerous burden these questionnaires will place on our nation’s small businesses, which continue to struggle due to COVID-19 restrictions in states and local communities. Further, the new questionnaires could have a chilling effect on businesses applying for a potential new round of PPP funding and would limit the impact of this critical program in our nation’ recovery.
ABC joined a coalition of 80 organizations in letters to congressional leaders and SBA/Treasury regarding the PPP Loan Necessity Questionnaires. ABC has also urged Congress to act on this issue in an action alert and recent letter to Congress. ABC will continue to monitor this critical issue and provide updates on any congressional or administration responses.
DoD’s Nationwide Permits Proposal Will Streamline Permitting Under the CWA, Says ABC On Nov. 16, ABC submitted comments as part of the Waters Advocacy Coalition to the U.S. Department of Defense’s Army Corps of Engineers on its proposal to reissue and revise the agency’s nationwide permits under the Clean Water Act. WAC expressed support for the proposed rule, which would continue to carry out Congress’ intent to allow more streamlined permitting for activities that have minimal adverse environmental effects and encour-
18 | JANUARY2021
aged the Corps to ensure consistency with the Navigable Waters Protection Rule in the final rulemaking. Officially titled Proposal to Reissue and Modify Nationwide Permits, the notice reissues the current NWPs, which authorize certain activities under Section 404 of the Clean Water Act and Section 10 of the Rivers and Harbors Act of 1899, for another five-year cycle. The current NWPs are set to expire on March 18, 2022.
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Additionally, the Corps is proposing to issue five new NWPs to simplify and clarify the permit processes and reduce burdens on the regulated public. More information on the proposal and NWPs can be found on the Corps website.
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CONSTRUCTION NEWS BULLETIN
NEWSLINE
DOL Issues Updates to DBA ‘Split Rate’ Wage Determinations and Worker Classifications On Dec. 14, the U.S. Department of Labor’s Wage and Hour Division issued two All Agency Memoranda, AAM 235 and AAM 236, with revisions to certain DOL wage determinations for federal contractors under the Davis-Bacon Act. According to AAM 236, WHD has updated its $1 million threshold used to determine which wage determinations of the four general categories of construction (building, residential, highway and heavy) will be applied to a construction project. The memo states, “when work in a different category exceeds either $2.5 million or 20% of costs, a contracting agency should generally apply the wage determination for the different category in addition to the wage determination for the overall project.” WHD is updating this policy for the first time since 1987, when WHD introduced $1 million as an indicator for whether the cost of construction items in a different category is substantial despite not exceeding 20% of total project costs. In 2020, ABC submitted letters to both President Trump and Rep. James Comer, the ranking member of the U.S. House of Representatives Committee on Oversight and Reform during the 116th Congress, on how the policy prior to AAM 236 impacted its members—particularly for projects financed by the U.S. Department of Housing and Urban Development. In its letter to Rep. Comer, ABC said, “Items generally deemed by HUD as ‘incidental’ to residential construction (four stories or less), i.e. swimming pools, community buildings, storage sheds, etc., have received Davis-Bacon multiple or ‘split wage’ rate determinations, which has caused confusion and created uncertainty for ABC contractors and contracting officers in charge of HUD-financed projects. In order to alleviate confusion and mitigate barriers to constructing federal HUD-financed affordable housing
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projects, DOL should issue guidance to reinstate DOL’s past policy that only residential wage decisions shall be applied to housing projects (four stories or less), including all incidental items, unless there is an established area practice to the contrary. Further, in cases where a quantitative guideline may be appropriate, the guideline should be a threshold of more than 20% of the total costs (not a threshold of $1 million), and it should apply only to individual work components of a project (not to aggregations).” AAM 235 Impacts Surveyors Effective immediately, AAM 235 rescinded an Obama-era memorandum, AAM 212, allowing survey crew members performing physical and/or manual work to be considered laborers or mechanics subject to the Davis-Bacon labor standards on covered projects. According to AAM 235, “since the issuance of AAM 212, concerns have been raised that this guidance was issued without a sufficiently broad appreciation of the coverage issue it addressed, especially with respect to identifying the duties performed by, and training required of, survey crew members who perform work immediately prior to and during construction, in direct support of construction crews. Delay in implementing AAM 212, while providing an opportunity for such concerns to be raised, has caused further confusion for the regulated community.” In 2018, ABC joined a coalition of industry groups in sending a letter to former DOL Secretary Alexander Acosta strongly supporting the rescission of AAM 212, saying the Obama memorandum set a dangerous precedent and unilaterally overturned more than 50 years of accepted and settled policy. Changes May Be Reversed by Biden Administration Contractors and employees impacted by these reforms should be prepared for additional changes in the future. www.guamcontractors.org
“Because All Agency Memorandums do not require notice and comment from the public, these measures can easily be rescinded by the Biden Administration’s DOL,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “These minor and likely temporary common-sense changes to DOL policy are long overdue and pale in comparison to the extensive reforms the 90-year-old Davis-Bacon Act and related regulations must undergo in order to properly support construction workers, contractors and taxpayers in today’s modern economy.” For decades ABC has suggested to DOL and Congress ways it can improve and modernize Davis-Bacon Act regulations and the DOL Wage and Hour Division’s internal processes that determine prevailing wage and benefits rates for construction workers building federal contracts exceeding $2,000 and additional public works projects receiving federal financial assistance. “The truth is, American taxpayers and construction industry workers and small business contractors would benefit from a broad overhaul of the Davis-Bacon Act bureaucracy,” said Brubeck. “Taxpayers deserve the best possible construction product at the best possible price when the federal government builds or invests in infrastructure. Likewise, long overdue regulatory clarity and common-sense reforms would provide more opportunities for small businesses and create more jobs for construction workers across America.” More information on the Davis-Bacon and Related Acts can be found on the DOL website. The information contained in this article is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
JANUARY2021 | 19
20 | JANUARY2021
4
5
17
Baker
Elevator Installer Technician
Camp Cook
28
www.guamcontractors.org TOTAL Construction H-2B Workers
53 1582
5
Total OTHER Construction
1
A/C & Refrigeration Mechanic
11
20
8
Crane Operator
Pipefitter
Heavy Equipment Mechanic
Construction Equipment Mechanic
Other Construction Occupations
Employers Workplace Monthly Report Statistics
Total Non-Construction H2-B Workers
2
Automotive Mechanic
Other Non-Construction Occupations
GUAM DEPARTMENT OF LABOR Alien Labor Processing Certification Division
65 18 102 90 2 41
Sheetmetal Worker Heavy Equip. Operator Electrician Camp Cook Welder Total Common Const.
1606 4 0 0 0 0 0 0 0 0 1610
1624
1610
Total H-2B Employers
Total U.S. Workers Grand Total H-2B Workers
0
500
1000
1500
2000
2500
Total U.S. Workers
Total U.S. Workers Grand Total Hin H2 companies 2B Workers
US Workers vs. H-2B
6 23
3000
17
Construction Non-Construction
Employers By Industry
Philippines Mexico Japan Kiribati United Kingdom Australia Italy Peru Thailand Other Total by Nationality
Workers by Nationality
1529
17
Structural Steelworker
236
629
329
Plumber
Reinforcing Metalworker
Carpenter
Cement Mason
Common Construction Occupations
MONTH ENDING: November 2020
Mexico Thailand 0.25% 0.00%
1.11%
4.25%
1.18%
6.67%
15.43%
5.89%
0.13%
Other 0.00%
Peru 0.00%
Prepared By: Jessie Cruz Contact information: Greg Massey, ALPCD Administrator P.O. Box 9970 Tamuning, Guam 96931 (671)475-8005/8003
Welder
Camp Cook
Heavy Equip. Operator Electrician
Sheetmetal Worker
Reinforcing Metalworker Structural Steelworker Plumber
Carpenter
Cement Mason
Other
Thailand
Peru
Italy
Australia
United Kingdom
Kiribati
Japan
Korea
Philippines
United Kingdom 0.00%
Kiribati 0.00%
21.52%
41.14%
2.68%
Common Construction Occupations
Philippines 99.75%
Japan 0.00%
Australia 0.00%
Italy 0.00%
H-2B Population by Nationality
REPORTS/ INFORMATION CONSTRUCTION NEWS BULLETIN
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The Bureau of Statistics and Plans, Guam Coastal Management Program recently updated its Guidebook to Development Requirements on Guam. The new guide is a fundamental resource available free of charge to developers planning to undertake any major or minor project on Guam. Updated as of March 2020, the guide serves as a reference point for developers researching how to execute environmentally compliant development projects. Within the 236-page guide, you will find information on laws, regulations, permits and clearances as established by numerous local and federal regulatory agencies. This includes all categories of construction, earthmoving, and agriculture, as well as other types of land use and water-oriented construction. You will also find details on the environmental health and safety requirements for major developments. The guide outlines each type of requirement for development by: t TVNNBSJ[JOH JUT QVSQPTF BOE OBUVSF t DJUJOH UIF (PWFSONFOU BHFODZ XJUI BVUIPSJUZ GPS BQQSPWBM t EFTDSJCJOH UIF BQQMJDBUJPO SFWJFX QSPDFTT t QSFTFOUJOH GBDTJNJMFT PG BQQSPQSJBUF BQQMJDBUJPOT BOE t TVHHFTUJOH BEEJUJPOBM SFGFSFODFT GPS NPSF EFUBJMFE JOGPSNBUJPO A limited number of hard copies of the guide are available to the public. You can also download a copy at bsp.guam.gov/guam-development-guidebook/.
FOR MORE INFORMATION, PLEASE CONTACT GCMP t #41 (6". (07 A MESSAGE BROUGHT TO YOU BY THE GUAM COASTAL MANAGEMENT PROGRAM. PAID FOR FROM GRANT # NA19NOS4190165
