VOL. 62 ISSUE5 MAY2021 • GUAM CONTRACTORSʼ ASSOCIATION
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TABLE OF CONTENTS
10
14
CONSTRUCTION NEWS BULLETIN
MAY
2021 8
S.A.M.E. UPDATE
9
SMALL BUSINESS NOTES
10
FEATURE STORY
14
CONSTRUCTION HEADLINE
15
NAWIC NEWS
16
NEWSLINE
19
MEMBER BENEFITS
20
REPORTS/ INFORMATION
NOW ACCEPTING ONLINE PAYMENTS VIA PAYPAL
VISIT OUR WEBSITE FOR MORE INFO 2 | MAY2021
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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 Bill Beery Tutujan Hill Group VICE CHAIRMAN Grace Jacot SET Pacific
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 John Sage Pacific Rim Constructors Inc. PAST CHAIRMAN Peter Errett Hawaiian Rock Products 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.
Lucia Wood APTIM Joe Roberto East Island Tinting
Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 506 Mariner Ave., Barrigada, Guam 96913
Hunter Groom Hensel Phelps Albert Smith SmithBridge Guam 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 Bill Bernardo Conwood
AD SALES: Jaceth Duenas PRODUCTION: Jaceth Duenas Geri Leon Guerrero Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: Pete Diaz Maiko Nakamura Rebecca Gale Rodney “RJ” Ricarte GCA STAFF: Desiree Lizama Elaine Gogue Francine Taitague Trevor Cruz COVER: With their mission to make sure that every workplace is safe, OSHA is always ready to help.
Postmaster. Send address changes to Guam Contractors’ Association, located at 506 Mariner Ave., Barrigada, Guam 96913
Camilo Lorenzo Matson Navigation
GCA
PRODUCTION TEAM LEAD: Geri Leon Guerrero
TRADES ACADEMY B u i l d i n g
S k i l l s
F o r
A
L i f e t i m e
Guam Contractors Association
4 | MAY2021
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SHREDDING, GRINDING, SCREENING, AND DUST SUPPRESSION
Do you have a large clearing and grubbing project or just need your site cleared? - We can clear and grub your land and we can save you money by providing on-site shredding and grinding services to avoid the high cost of hauling out and tipping the cleared material from your land. We will spread the green waste and wood mulch on your newly cleared land to help prevent the growth of weeds and reduce maintenance costs. - For large commercial jobs, our German engineered and industry leading Doppstadt equipment has the production capacity to speed up your project timeline. Equipped with a 3060K slow speed primary shredder and a high speed AK530 grinder, we have the equipment to get the job done.
Do you need to screen material to a certain Spec? - Our 720K Trommel Screen can produce 3/8”, ¾”, 1 ¼” and 2” product as fast as we can load it. The DZH Grinder: The simple horizontal tracked choice for your difficult jobs. - 755 horsepower. Production capacity of up to 120 Tons per hour. 2” and 4” screens to meet your finished product requirements.
FOR MORE INFO, PLEASE CONTACT DANICA CERTEZA: Tel: (671) 898-5661 | Email: dcerteza@pacificunlimitedguam.com
PRESIDENT’S LETTER
CONSTRUCTION NEWS BULLETIN
PRESIDENT’S LETTER Hafa Adai! GCA Members: This month marks the new fiscal year for GCA. As such, we recently held our annual GCA Board elections for contractor directors and ultimately, the new board appointed the four (4) associates directors. Officers and board for Fy’22 include: Bill Beery, Tutujan Hill Group – Chairman-elect Grace Jacot, S.E.T. Pacific – Vice chair-elect John Sage, Pacific Rim Constructors – Secretary/Treasurer – elect Peter Errett Jr., Hawaiian Rock Products – Immediate Past Chair Hunter Grooms, Hensel Phelps – Contractor Director Don McCann, Black Construction Corp. – Contractor Director Joe Roberto, Island Tinting – Contractor Director Albert Smith, Smithbridge Guam – Contractor Director Lucia Wood, APTM – Contractor Director Bill Bernardo, Conwood Products – Associate Director Mark Cruz, MPFE – Associate Director Jose Garcia, First Hawaiian Bank – Associate Director Camilo Lorenzo, Matson Navigation – Associate Director Congratulations to our new GCA Board of Directors. On May 19, 2021 a live and in-person swearing in ceremony was held at the GCA Board Office in Tiyan. The honorable Joshua Tenorio administered the oath of office with the GCA members witnessing virtually during the monthly GCA membership meeting. Earlier this month, the GCA Small Business Committee sponsored two (2) webinars with guest speakers from the law firm McCarter & English LLC. The first webinar covered the topic of “Changes in Policy of the Buy American Act under the Biden Administration”. The second webinar covered the “False Claims Act”. Both webinars were recorded and will be posted on our GCA website for later viewing. We would the thank Alexander Major, Franklin Turner, Cara Wulf, and Matt right for a very informative and comprehensive presentation on these topics. The speakers were presenting “live” from all the way in Washington DC. On June 4, 2021, the GCA Activities Committee is planning to hold the Annual GCA Golf Tournament Fundraiser to raise money for scholarships for students to attend the GCA Trades Academy. The event will be held at the Leo Place Resort Golf Course in Yona, Guam. Shotgun start time is scheduled for 10:30 am. Please support our students interested in a construction career and support this golf tournament. Lastly, The GCA Trades Academy is holding a summer session for high school students. As many as fifty students are anticipated to sign up for the course. This is a six-week program that will run from June 7 – July 16, 2021 from 8:00 am – 5:00 pm Monday to Friday. Academic classes in mathematics and English will also be offered along with the NCCER Core curriculum. The CORE curriculum includes Basic Safety, Introduction to Hand and Power Tools, Introduction to Basic Rigging, and Basic Communication Skills and Employability Skills. Upon completion of these modules, students will receive a NCCER credential reflecting the skills and knowledge need for construction careers that employers recognize and consider when hiring. Deadline for submissions is May 31, 2021. Have a great start to your summer! Dångkulu na si Yu’us ma’åse’ James A. Martinez President Guam Contractors Association
Guam Contractors Association
6 | MAY2021
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S.A.M.E. UPDATE
CONSTRUCTION NEWS BULLETIN
Society of
NEWSLETTER MAY 2021
American Military Engineers
ANNOUNCMENTS Guam Post Annual Elections Please let Scott Thompson (scott.thompson@coffman.com) or Noel Enriquez (nenriquez@macdonaldbedford.com) know if you are interested in being a Director. Elections are in May. Installation of Officers in June.
SAVE THE DATE 18-22 MAY 2021 ChST Virtual Joint Engineer Training Conference & Expo (JETC) Three keynote speakers, 50+ speakers, 40+ educational and training sessions, Virtual Exhibits. For more info: www.samejetc.org 27-31 JUL 2021 ChST Virtual Facilities Management Workshop For more info, see: www.fmworkshop.org 11-13 NOV 2021 (TENTATIVE) Charlie Corn Scholarship Golf Tournament To benefit students studying engineering or architecture. Venue: STARTS Guam Golf Resort For more info, contact John Paul Dierking, (jpdierking@gmail.com)
APRIL GENERAL MEMBERSHIP MEETING RECAP:
RETURN TO OFFICE: NAVIGATING COVID-19 Leslie McMurray, Government Accounts Manager for Steelcase and Pam Montgomery, Government Sales Market Manager for Interior Showplace presented on what returning to the office could be like in light of COVID-19 during our April General Membership Meeting. Steelcase is a US-based furniture company producing office furniture, architectural and technology products for office environments and industries including education, health care and retail. Interior Showplace is a provider of office furnishings and as the distinguished Steelcase dealership in Hawaii, they also serve the Pacific Rim, including Japan, Guam, and South Korea. Since the onset of COVID-19, Steelcase conducted research in several countries related work from home, return to workplace and what a hybrid future workplace would look like. Through their research, Steelcase identified five things people need for their workspaces: 1. Safety: to be and feel safe 2. Belonging: inclusion, trust, and shared purpose 3. Productivity: to focus and collaborate 4. Comfort: physical, cognitive and emotional 5. Control: over where and how they work. For safety, the following are new priorities for returning employees: air quality, adherence to safety protocols, facility cleanliness, physical distancing and boundaries. Other priorities include density, visitor protocols and food and beverage safety. Results from a global study, indicated that a large number (72%) of the return to workplaces will see hybrid approach. In another study, the hybrid approach was closer to about half (54%). What people liked about working from home included no commute, the ability to focus, less distractions and a range of settings. What people didn’t like about working from home was the feeling of isolation, gradually becoming less productive, slower decision making and reduced engagement and collaboration. “A better work experience begins with a better workspace.” The table to the left highlights the macro shift in how we should think, design and modify workplaces to address the “new” normal.
Upcoming May Meeting
DPW Building Permit Process & Upcoming GovGuam Construction Projects
Presented by Vincent P. Arriola Director, Department of Public Works
20 MAY 2021
Moving forward, the following are suggestions for companies to consider: • Readiness of your workspace: 1) Conduct space assessments, 2) Explore new applications, and 3) Measure occupancy. • Readiness of your people: 1) Understand employee expectations, 2) Inform with a workshop • Readiness of your strategy: 1) Transform your work experience, 2) Prepare for hybrid working, 3) Address change management needs, and 4) Adapt work-from-home strategies.
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Website: www.same.org/Guam facebook.com/GuamContractors
CONSTRUCTION NEWS BULLETIN
SMALL BUSINESS NOTES
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 Procurement Integrated Enterprise Environment (PIEE)
5/20 2021
Department of Defense (DOD) vendors use the Wide-Area Workflow (WAWF) module in the Procurement Integrated Enterprise Environment (PIEE) system to create, submit, and track their invoices. We will show you how to setup an account and submit an invoice so you get paid on time.
Cybersecurity: Federal Contractor Responsibilities
05/27 2021
The Department of Defense (DOD) is requiring cybersecurity certification for vendors. We will discuss the best way to comply with DOD's requirement. The upcoming Cybersecurity Maturity Model Certification (CMMC) and the DFARS Interim Rule will be discussed.
FREE Live Webinars Every Thursday!
The Guam Procurement Technical Assistance Center (PTAC) is offering FREE webinars to the public for May 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 Market Your Business Friday, May 21, 2021 • 8:30am – 11:00am
Register at: pisbdcn.ecenterdirect.com/events/ For more information, contact: (671) 735-2590 facebook.com/GuamContractors
Customers are the most important part of your business. This workshop will introduce four essential aspects of marketing which will help you identify who your customers are, how much and how often they will buy from you, and why they will do business with you rather than your competitors. In addition to your customers, market research, target markets, positioning, and your marketing message are essential to successfully market your business. This workshop builds on these approaches and provides you with a step-by-step guide to preparing a formal marketing plan. You will discover how to attract your target market and entice your customers to buy your product or service, and keep them coming back for more.
www.guamcontractors.org
MAY2021 | 9
Guam OSHA On-Site Consultation Program office stands ready to help employers
CONSTRUCTION NEWS BULLETIN
The Guam Occupational Safety and Health Administration On-Site Consultation Program is ready to help ensure work environments are safe and healthy - particularly as the island’s companies prepare for a post-pandemic era. “Our mission, generally, is to protect workers from hazards in the workplace, any workplace,” Jesse Pangelinan, program manager for the Guam Department of Labor OSHA On-Site Consultation Program, said by way of introducing his office. The Guam Department of Labor OSHA On-Site Consultation Program is a 100% federally funded program. It provides, at no cost to consumers, confidential assistance in identifying hazards, abatement assistance, and formal/informal training to small businesses to ensure compliance to OSHA Standards and Regulations, he said. According to the program website, the office is primarily targeted for smaller, high-hazard businesses. It is completely separate from the OSHA inspection effort. They do not issue citations or penalties. As a consultation program, the office works with businesses to create a work environment with the goal of ensuring they avoid such situations where people could potentially be hurt or a situation arises where an employers faces a fine. The program is confidential. However, the consultant can report hazard information to OSHA if the employer fails to correct an imminent danger or serious hazards. “The employer’s only obligation will be to commit to correcting serious job safety and health hazards – a commitment which is expected to be made prior to the actual visit and carried out in a timely manner,” according to the program’s website. Pangelinan recently held a webinar titled "COVID-19, Returning to Work.” The webinar touches on the guidelines for reopening businesses provided by the U.S. Department of Health and Human Services as well as the White House. Pangelinan said he’s prepared to offer the webinar again. Additionally, he said his office is available to help the local business community as the governor continues to lift restrictions and more businesses are reopening or expanding their operations. Any organization interested in learning more are welcome to contact his office.
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FEATURE STORY
“We are here to assist all who need help, want clarification, or want a second set of eyes,” he remarked. Pangelinan said during the pandemic, they had to reduce face-to-face consultations but did have remote assistance available. They also provided multiple safety awareness training. Like other offices, both local government and federal, they’re expanding their services as safety guidance allows. “We are moving cautiously. The health and safety of my team is first. We are offering both on-site and remote visits,” he said adding that the team has to essentially practice what it preaches. Pangelinan noted that during the pandemic, the down time provided an opportunity to get the team updated and focus on safety awareness training. He noted that while there are no new laws or policies in place with regard to post-pandemic work conditions, the existing polices are clear. “The 5a1 is the General Duty Clause. It is the requirement of an employer to provide a safe and healthful workplace,” he stated. “There are surely OSHA standards coming down the pike. The policies, references, and practices we are finding as the ‘new normal’ may become law. Until it is law, refer to the guidelines and references that OSHA provides on its webpage.” Voluntary According to the website, the program’s services aren’t a requirement. Going through a consultation is strictly voluntary and as such, businesses must contact the office and request consultation. The consultant will discuss specific needs with the employer and set up a visit based on the priority assigned to the request, the employer’s work schedule, and the time needed for the consultant to prepare for the visit, the site states. OSHA encourages business to include a review of safety and health situation, however, an employer can also request to limit a consultation visit to specific problems. If there are hazards found during the process of consultation, the business has to correct “serious hazards found during the visit in an agreed-upon time frame.” This gives the employer time and the opportunity to make
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MAY2021 | 11
FEATURE STORY
CONSTRUCTION NEWS BULLETIN
improvements that would ensure a safe environment for employees and customers. “Other situations – those which would be judged a serious violation under OSHA criteria – require the employer and the consultant to develop a plan and schedule to eliminate or control the hazard,” the website states. If called upon, the On-Site consultants will: • Meet with the employer and, at times, employees or employee representatives; • Walk-through the worksite with the employer and employees; • Review company injury and illness rates; Help identify hazards in the workplace; • Identify kinds of help available for further assistance; • Give detailed findings in a closing conference; • Provide a written report summarizing findings; • Assist the development or maintenance of an effective safety and health program; • Provide training and education for the employer and employees; • Recommend the site for a one-year exemption from OSHA programmed inspections, when SHARP criteria are met.
12 | MAY2021
The On-Site Consultants won’t: • Issue citations or propose penalties for violations of OSHA standards; • Report possible violations to OSHA enforcement staff; • Guarantee that your workplace will “pass” an OSHA inspection. Pangelinan encourages anyone with questions about OSHA safety requirements to contact his office by calling 300-4620 or emailing jesse.pangelinan@dol.guam.gov. “The Guam Department of Labor OSHA On-Site Consultation is ready to assist,” he stated. Pangelinan provided additional resources for employers: • Coronavirus Disease: https://www.osha.gov/coronavirus • Protecting Workers: Guidance on Mitigating and Preventing the Spread of COVID-19 in the Workplace: https://www.osha.gov/coronavirus/safework • Guidance by Industry: https://www.osha.gov/coronavirus/guidance/industry
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CONSTRUCTION HEADLINE
CONSTRUCTION NEWS BULLETIN
MATSON CELEBRATES 25 YEARS OF SERVICE TO GUAM, THE NORTHERN MARIANA ISLANDS AND MICRONESIA In celebration of its 25th Anniversary of providing service to Guam, the Northern Mariana Islands and Micronesia, Matson today announced a new scholarship fund to help students in the region pursue higher education. The more than $60,000 fund will be distributed over the next five years through colleges and universities in Guam, the Commonwealth of the Northern Mariana Islands (CNMI), The Federated States of Micronesia (FSM), and Palau. “Matson believes in supporting education and giving back to the communities that have supported us for the past 25 years. We are excited to be able to provide these new opportunities for students throughout Micronesia,” said Bernie Valencia, vice president and general manager for Guam and Micronesia. Valencia noted that the company will be developing additional projects throughout the year in celebration of its 25th anniversary. “In the spirit of education, we’d like to partner with industry stakeholders to introduce high school students throughout Micronesia to potential careers in the maritime industry,” she added.
A Shipping Pioneer in the Pacific A Look Back at 25 Years in the Region
Matson has been serving the Pacific since 1882 and launched operations in Guam and Micronesia in 1996, initially as a joint service with another carrier. In 2006, Matson assumed full control of the service concurrent with the launch of its China-Long Beach Express premium service via Guam. Matson, Inc. became an independent, publicly-traded company in 2012, also establishing the Matson Foundation, now called Matson Giving, to administer all of the company’s community support activities in communities where Matson serves. Soon after, the foundation established the Adahi I Tano’ program in 2014, a “green’ program in Guam that benefits nonprofit organizations that perform cleanups around the island. Throughout its history in the region, Matson pioneered refrigerated cargo to the Pacific Islands. That spirit of continual improvement has resulted in one of the best refrigerated cargo systems in the shipping industry and led to its current high-tech service that gives customers the ability to specify precise temperature and atmospheric controls that keep cargo in optimum conditions and monitor their shipment in real-time throughout the journey. In 2016, Matson celebrated 20 years of service to Guam and Micronesia by paying tribute to Micronesia’s Grand
Master Navigator Pius “Mau” Piailug by naming a vessel in Guam and Micronesia M/V Papa Mau. Originally from Yap, Piailug is honored posthumously for his singular influence in the perpetuation of traditional wayfinding and celestial navigation across the Pacific. Additionally, the company commemorated 20 years in Micronesia through its major sponsorship of the 2016 Festival of Pacific Arts, helping island nations ship cultural cargo to Guam, including the inaugural voyage of The Che’lu Sakman Chamoru, a traditional Chamorro sailing canoe, in Guam’s waters. As part of the company’s latest fleet modernization, Matson commissioned four newly-built state-of-the-art vessels to replace seven smaller ships, all four of which are the largest ships of their kind ever built in the U.S. Two of the vessels now serve Guam – the 3,600 TEU* Aloha Class containerships Daniel K. Inouye, which entered service in 2018 and Kaimana Hila, which entered service in 2019. The other two vessels, 3,500 TEU Kanaloa Class combination container and roll-on/roll-off (“Con-Ro”) ships named Lurline and Matsonia, support West Coast originating cargo destined for Guam and Micronesia via transshipment in Hawaii.
25 Years of Commitment to Guam, the CNMI, and Micronesia
Throughout the 25 years, Matson’s operations have grown to support the needs of the CNMI, Micronesia and the Marshall Islands, using Guam as its hub in the region. Matson operates weekly service to Guam from the U.S. West Coast and Honolulu with connecting service to the CNMI, Yap, Palau, Chuuk, Pohnpei, Kosrae, Majuro, Ebeye, Kwajalein, and since 2017, Okinawa. Valencia noted that operations for its Okinawa service are also managed out of Guam. “As we celebrate our 25th Anniversary, we also recognize that it comes at a time when we are emerging from a very difficult year. We want our communities in Guam, the Northern Marianas, and throughout Micronesia to know that Matson remains committed to supporting the region through its recovery the best way we know how – by providing dependable shipping, exemplary customer service, and supporting our communities in meaningful ways,” she said. Valencia added, “We are thankful for the privilege of having served our customers in the region for the past 25 years want them to know that they can count on Matson to be here for them for the next 25 years and beyond.” * TEU = twenty-foot equivalent units (standard unit of capacity measurement)
14 | MAY2021
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NAWIC NEWS
CONSTRUCTION NEWS BULLETIN
too! Together, they show case how dynamic women can be in the industry. We are pleased to share their thoughts and advice. This month we are proud to introduce the newest members of our growing NAWIC Guam Chapter #381. There is no doubt these women stand out in their individual fields and career paths; balancing work, family, and self-care days requiring a great level of dedication and maybe some sort of superpower
Questions: 1. If you could give your past self any advice, what would it be? 2. What is the best advice you have received in business that you wish to pass on to our readers? 3. If you could have one superpower, what would it be?
Annabelle Calimlim
Project Coordinator Landscape Management Systems, Inc. dba: LMS 1. “Everything happens for a reason. Without mistakes and failure, you would have never learned. Without breakups, you would have never met someone new. Without pain, you would have never grown. Once you understand, you will know that everything comes in your life to serve a purpose and then it will go. Don’t stress or ever think
that life is unfair because everything happens for a reason.” 2. “To encourage/ challenge myself to build momentum from what I’ve done and follow through effectively so that I can cement the right habits. Consistency is paramount so that I can turn the key behaviors into habits. To continue to see what I need to work on and how I have to raise my game through continuing to develop key skills and raise my thinking in the most effective way. To embrace change.” 3. “To fly. (: “
Karen DeWaal
Business Development Manager AMorient 1. “You don’t have to know everything – everyone learns along the way. When someone is teaching you something new – write it down straight away. You only think of yourself as fairly intelligent until you have children, then you realize you know nothing.”
2. “Saw this quote in an article about proposal writing but it has a wider relevance: If you can’t explain it simply, you don’t understand it well enough – Albert Einstein” 3. “Teleportation – no more cattle class for me!”
Marichu Relativo
General Manager Potawatomi Support Services, LLC 1. “Chu (my nickname), slow down and have some fun. Dance more. Laugh more.” 2. “Focus on your strengths rather than your weaknesses and hire someone to fulfill that weakness. For instance, if technical writing is your weakness, then hire a technical writer. This advice followed me
Sherri Bahns
Nadia Holm
Health and Safety Manager ECC 1. “Trust your intuition, it’s never wrong.” 3. “I would be able to eat pizza and beer without getting fat.”
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to focus on the big picture and my strengths. Another piece of advice that helped me tremendously was not to self-doubt my first instinct. There will be plenty of others who will doubt you. Trust yourself.” 3. “The ability to read people’s mind.”
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Assistant Project Manager Black Construction Corp. 1. “You’re smart enough, just do it. If that does not work out, do something else. Just keep going.” 3. “If I could have one superpower it would be teleportation! That would make traveling so much easier!”
MAY2021 | 15
NEWSLINE
CONSTRUCTION NEWS BULLETIN
NEWSLINE Language in Clean Energy Tax Credit Overhaul Bill Would Chill Competition From Merit Shop Contractors On May 4, ABC sent a letter to the U.S. Senate Finance Committee Chair Ron Wyden (D-Ore.) raising concerns about provisions in the Clean Energy for America Act that would expand new government-registered apprenticeship program requirements and Davis-Bacon prevailing wage regulations onto the construction of projects receiving clean energy tax incentives. ABC is troubled by provisions in the legislation that will needlessly increase construction costs and reduce competition from qualified companies and their skilled employees who participate in the construction of the clean energy marketplace. As currently drafted, this legislation will create a shortage of skilled labor and contractors able to deliver a rapid, market-driven and cost-effective transition away from fossil fuel energy to clean energy. In addition, these changes will create added costs that will be passed on to ratepayers, manufacturers and consumers, and decrease America’s energy cost advantage attractive to manufacturers and businesses in the global marketplace. Introduced by Senate Democrats, the legislation overhauls “the system of tax breaks dealing with clean energy, providing new or sweetened incentives for using solar, wind and other non-carbon sources to generate and transmit electricity, as well as expanding incentives to promote energy efficiency, in areas such as commercial buildings,” according to Engineering News-Record. The increased costs resulting from the legislation’s proposed government-registered apprenticeship program 16 | MAY2021
requirements and prevailing wage regulations for the construction of projects receiving clean energy tax incentives may make program tax credits unusable—depending on the type of clean energy construction project and geographic market—and hinder the ability of clean energy producers to be competitive against fossil fuel producers, which ultimately undermines critical policies addressing climate change. Government-Registered Apprenticeship Requirements Section 601 in Title VI of the Clean Energy for America Act requires all contractors and subcontractors contracted to build clean energy projects that are receiving applicable tax credits and have four or more construction workers on a jobsite to “ensure that not less than 15% of the total labor hours of such work” is performed by participants in government-registered apprenticeship programs. ABC and its 69 chapters support government-registered apprenticeship programs—offering more than 300 U.S. Department of Labor and state government-registered apprenticeship programs in 20 different construction occupations across America—as part of its all-of-the-above workforce development strategy to tackle the industry’s skilled workforce shortage, estimated at 430,000 workers in 2021 alone. However, participants and graduates of federal and state registered apprenticeship programs in the construction industry constitute only a small fraction of the industry’s workforce and data demonstrates the governwww.guamcontractors.org
ment-registered apprenticeship system is not meeting the industry’s demand for skilled labor. According to data from the U.S. DOL, in fiscal year 2020, the construction industry’s federal government-registered apprenticeship system produced 20,749 graduates of its four-to-five-year apprenticeship programs. In addition, construction industry apprenticeship programs registered with state governments produced an estimated 15,000 to 20,000 graduates in FY 2020. At current rates of completion, it would take more than 10 years for all government-registered construction industry apprenticeship program completers to fill the estimated 430,000 vacant construction jobs in 2021 alone. According to the letter: “Needlessly excluding all contractors who do not participate in government-registered apprenticeship programs from building clean energy projects subject to clean energy tax incentives is problematic. It will create a shortage of contractors and skilled labor to complete these projects, undermine established and preferred industry workforce development pipelines not affiliated with government-registered apprenticeship programs, displace contracts and jobs for businesses and workers already building the clean energy economy, give an unfair competitive advantage to unionized contractors and labor, increase clean energy construction costs and ultimately threaten America’s rapid and cost-effective transition to clean energy.” Prevailing Wage Requirements The Clean Energy for America Act expands ABC-opposed Davis-Bacon prevailing wage requirements to “eight facebook.com/GuamContractors
CONSTRUCTION NEWS BULLETIN
clean energy tax credit programs, which will reduce competition from contractors already building the clean energy economy, increase construction costs and render some of these tax credit programs unusable,” according to the letter.
America Act was introduced on April 21 and received a full committee hearing on April 27. The U.S. House Ways and Means Committee is working on similar legislation overhauling the tax code for clean energy marketplace.
“Until the Davis-Bacon Act can be modernized and regulators address the red tape burdens and increased costs resulting from this anti-competitive and costly regulatory scheme, it would be wise to keep prevailing wage regulations in their current form off of clean energy tax credits projects. Doing so would create the conditions for all qualified contractors and their skilled workforce to compete to build the clean energy economy and give taxpayers additional value for investments in clean energy and public works projects as Congress works to enact critical clean energy infrastructure modernization and America faces a $2.6 trillion infrastructure gap by 2029.”
Sen. Wyden’s bill comes on the heels of the Biden administration’s March 31 release of the American Jobs Plan, an outline of $2.25 trillion worth of government spending that includes investments in infrastructure and clean energy.
Outlook on Wyden Bill and Infrastructure Proposals Sen. Wyden’s Clean Energy for
ABC has raised concerns about the AJP’s tax hikes on small businesses and language calling on Congress to
According to a White House fact sheet, “President Biden is proposing a ten-year extension and phase down of an expanded direct-pay investment tax credit and production tax credit for clean energy generation and storage. These credits will be paired with strong labor standards to ensure the jobs created are good-quality jobs with a free and fair choice to join a union and bargain collectively.”
NEWSLINE pass the ABC-opposed Protecting the Right to Organize Act and tie controversial government-mandated project labor agreements onto federal investments in infrastructure via forthcoming legislation. In an April 28 op-ed published in The Hill, titled America can build back better through fair and open competition, ABC pushed back on controversial provisions in the AJP that would harm the merit shop contracting community: “At a time when our economy is showing signs of recovery, the Biden administration and Congress should support policies that help bring our economic engine roaring back to life. Fair and open competition on taxpayer-funded construction projects will ultimately result in savings to taxpayers, more opportunities and jobs for all qualified local small businesses, minorities and women in the construction industry, and the construction of more quality infrastructure projects so America can Build Back Better and faster.”
NEWSLINE
CONSTRUCTION NEWS BULLETIN
President Biden Issues Executive Order to Raise the Minimum Wage to $15 for Federal Contractors On April 27, President Joe Biden issued an executive order increasing the minimum wage for federal contractors, which would require federal contractors to pay a $15 minimum wage to workers working on or in connection with a federal government contract. Beginning Jan. 30, 2022, the EO requires all agencies to incorporate a $15 minimum wage in new contract solicitations and to implement the minimum wage into new contracts by March 30, 2022. Agencies must also implement the higher wage into existing contracts when the parties exercise their option to extend such contracts, which generally occurs annually. The minimum wage will continue to be indexed for inflation. The EO directs the U.S. Department of Labor’s Wage and Hour Division and the Federal Acquisition and Regulatory
Council to issue regulations to implement the EO’s provisions by Nov. 24, 2021. In response to President Biden’s EO, Ben Brubeck, ABC vice president of regulatory, labor and state affairs, stated: “ABC has long held that the market should determine wages in the construction industry, where well-paying merit shop construction jobs sustain the careers of 87.3% of the workforce. In general, ABC’s government contractor members pay wage rates substantially higher than $15 per hour under the requirements of the Davis-Bacon Act and, to a lesser extent, the Service Contract Act. The primary concern with this executive action is not the wage rate itself, but rather the unlawful and unprecedented power grab by the executive branch to
set a new minimum wage in direct contravention of the DBA and SCA.” In Feb. 2014, the Obama-Biden administration’s Executive Order 13658 required federal contractors to pay employees working on federal contracts $10.10 per hour, subsequently indexed to inflation. Currently, the minimum wage for workers performing work on covered federal contracts is $10.95 per hour. Additional information about this EO can be found in this analysis from ABC general counsel Littler Mendelson. ABC will continue to provide updates on this important issue in Newsline.
CONSTRUCTION NEWS BULLETIN
MEMBER BENEFITS
VACCINATIONS: WHY YOU SHOULD GET THEM FOR YOURSELF AND YOUR CHILDREN By Rodney “RJ” Ricarte
The pandemic increased our awareness of vaccinations, not only for COVID-19, but for all of the vaccinations we are supposed to have for ourselves and our children. Whether it be for Chickenpox, Hepatitis A or B, Meningococcal Disease, Polio, Mumps, Measles or Rubella, parents need to get their children vaccinated (and make sure they are vaccinated). The National Foundation for Infectious Diseases (https://www.nfid.org/), has listed “10 Reasons To Get Vaccinated.” Here is a condensed version of that list.
#1. Vaccine-preventable diseases have not gone away The viruses and bacteria that cause illness and death still exist and can be passed on to those who are not protected by vaccines.
#2. Vaccines will help keep you healthy
#6. Vaccines will not cause the diseases they are designed to prevent
Vaccines contain either killed or weakened viruses, making it impossible to get the disease from the vaccine.
The Centers for Disease Control and Prevention (CDC) recommends vaccinations throughout your life to protect against many infections. When you skip vaccines, you leave yourself vulnerable to illnesses.
#7. Young and healthy people can get very sick, too
#3. Vaccines are as important to your overall health as diet and exercise
#8. Vaccine-preventable diseases are expensive
Like eating healthy foods, exercising, and getting regular check-ups, vaccines play a vital role in keeping you healthy. Vaccines are one of the most convenient and safest preventive care measures available.
Diseases not only have a direct impact on individuals and their families, but also carry a high price tag for society as a whole, exceeding $10 billion per year. An average flu illness can last up to 15 days, typically with five or six missed work or school days.
#4. Vaccination can mean the difference between life and death
#9. When you get sick, your children, grandchildren, and parents may be at risk, too
Vaccine-preventable infections can be deadly. Every year in the U.S., prior to the COVID-19 pandemic, approximately 50,000 adults died from vaccine-preventable diseases.
#5. Vaccines are safe
The U.S. has a robust approval process to ensure that all licensed vaccines are safe. Potential side effects associated with vaccines are uncommon and much less severe than the diseases they prevent.
Infants and older adults are at increased risk for serious infections and complications, but vaccine-preventable diseases can strike anyone.
Adults are the most common source of pertussis (whooping cough) infection in infants which can be deadly for babies. When you get vaccinated, you are protecting yourself and your family as well as those in your community.
#10. Your family and co-workers need you
In the U.S. each year, millions of adults get sick from vaccine-preventable diseases, causing them to miss work and leaving them unable to care for those who depend on them, including their children and/or aging parents.
Still time to get your COVID shot
Let's protect ourselves and our loved ones. FHP Health Center is offering COVID vaccinations to TakeCare members 18 years old and above, free of charge. Call FHP Health Center at 646-5825, Press 2, to schedule a nurse only visit appointment for COVID and other vaccinations.
Rodney “RJ” Ricarte is the TakeCare account executive for GCA. He can be contacted at (671) 487-7121 or rodney.ricarte@takecareasia.com.
facebook.com/GuamContractors
www.guamcontractors.org
MAY2021 | 19
20 | MAY2021 5 2
A/C & Refrigeration Mechanic HVAC & Refrigeration Technician
24
6
Crane Operator
Total Non-Construction H-2B Workers
11
Pipefitter
www.guamcontractors.org TOTAL Construction H-2B Workers
Total OTHER Construction
10
HVAC & Refrigeration Mechanic
2
Heavy Equipment Mechanic
1647
61
19
Heavy Equipment Mechanic
17
Camp Cook
8
Construction Equipment Mechanic
5
Other Construction Occupations
Employers Workplace Monthly Report Statistics
Automotive Mechanic
Other Non-Construction Occupations
GUAM DEPARTMENT OF LABOR Alien Labor Processing Certification Division
17 117 91 2 27
Sheetmetal Worker Heavy Equip. Operator Electrician Camp Cook Welder Total Common Const.
1669 2 0 0 0 0 0 0 0 0 1671
1754
1671
Total H-2B Employers
Total U.S. Workers Grand Total H-2B Workers
0
500
1000
1500
2000
2500
3000
Total U.S. Workers
Total U.S. Workers Grand Total Hin H2 companies 2B Workers
US Workers vs. H-2B
5 23
3500
18
Construction Non-Construction
Employers By Industry
Philippines Mexico Japan Kiribati United Kingdom Australia Italy Peru Thailand Other Total by Nationality
Workers by Nationality
1586
17 66
Structural Steelworker Plumber
201
678
370
Reinforcing Metalworker
Carpenter
Cement Mason
Common Construction Occupations
MONTH ENDING: March 2021
Mexico Thailand 0.12% 0.00%
1.07%
4.16%
1.07%
7.38%
12.67%
5.74%
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%
23.33%
42.75%
1.70%
Common Construction Occupations
Philippines 99.88%
Japan 0.00%
Australia 0.00%
Italy 0.00%
H-2B Population by Nationality
REPORTS/ INFORMATION CONSTRUCTION NEWS BULLETIN
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YOUR COMPLETE TIRE SOURCE
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