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Tony Snow Subject Files
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Originally Processed With FOIA(s):
foia Number:
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FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Speechwriting, White House Office of
Series:
Snow, Tony, Files
Subseries:
Subject File, 1988-1993
OA/ID Number:
13892
Folder ID Number:
13892-002
Folder Title:
AGC-Associated General Contractors, 4/19/91
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Shelf:
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18
29
1
7
2321-
3115
THE GENERAL CONTRACTORS
OF AMERICA
SKILL
INTEGRITY
Sue Loonis
RESPONSIBILITY
THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA
1957 E Street, N.W.
Washington, D.C. 20006
(202) 393-2040
FAX (202) 347-4004
MARVIN M. BLACK, President
ROBINS H. JACKSON, Senior Vice President
BYRON L. FARRELL, Vice President
LAWRENCE J. McGOUGH, Treasurer
HUBERT BEATTY, Executive Vice President
April 19, 1991
Ms. Bobbie Kilberg
Deputy Assistant to the President
for Public Liaison
The White House
Washington, DC 20500
Dear Ms. Kilberg:
Thank you very much for your wonderful assistance in arranging the White House
briefing for AGC's Leadership Conference on April 15 and President Bush's participation.
As the enclosures show, our efforts are already underway to help secure approval
of President Bush's Fast-Track approach to a U.S. - Mexico Free Trade Agreement. Our
commitment is total. We will be following up with those in Congress determined to be
in need of more encouragement to support the President's leadership initiative.
On some occasion where your own awesome schedule might facilitate this request,
AGC would very much appreciate having you address one of our meetings. We like to
think that we are both sophisticated and appreciative about dedicated people in public
service and the real sacrifices they make so that government can work effectively and
fairly. And yet, that process, in my personal view, is neither sufficiently understood or
appreciated.
Those of us fortunate enough, despite its bumps and grinds, to work Inside the
Beltway know about the pressures that the thousands of public interests bring to bear
alike on appointed and elected officials. My hope would be that you might consider
addressing AGC along the lines of a typical day or week in government service. My
belief is that such an address would help secure understanding of the process of
government that is not available through textbooks.
Some AGC meetings that would be available to you for such an address are:
Our Midyear Meeting in St. Louis on September 27 - October 1
(anticipated attendance 1,500-1,800);
AGC's Executive Committee meeting, Washington, D.C., January 8-10, 1992
(21 members plus spouses); and
tive
AGC's 1992 Convention in Dallas on February 27 - March 3, 1992 (3,000-
5,000 attendees, dependent on economy).
THE FULL SERVICE CONSTRUCTION ASSOCIATION FOR FULL SERVICE MEMBERS
Ms. Bobbie Kilberg
April 19, 1991
Page 2
Regardless of the meeting you would address, we would also want to publish, with
your approval, your address in our monthly magazine, CONSTRUCTOR.
We would not expect, or seek, an early commitment, just as we would understand
how emergencies can result in last minute cancellation. Alternatively, the same objective
could be accomplished through an article or interview in CONSTRUCTOR. Its
interven yes
circulation is approximately 40,000 firms with "claimed" pass-along readership of about
120,000.
I would appreciate an opportunity to try to persuade you on this subject some
time when you get a little slack in your schedule.
Again, you have AGC's, and my, appreciation for your support in providing the
White House briefing on April 15 and for President Bush's. participation.
Sincerely,
Bert Beatty
Hubert Beatty
Executive Vice President
HB/mg
Cover story
Enclosures
THE GENERAL NONTRACTORS
Identical letters are being sent,
individualized, to all Members
of Congress
OF
AMERICA
SKILL
RESPONSIBILITY
INTEGRITY
THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA
1957 E Street, N.W.
Washington, D.C. 20006
(202) 393-2040
FAX (202) 347-4004
MARVIN M. BLACK, President
ROBINS H. JACKSON, Senior Vice President
BYRON L. FARRELL, Vice President
LAWRENCE J. McGOUGH, Treasurer
HUBERT BEATTY, Executive Vice President
April 29, 1991
The Honorable Edward M. Kennedy
United States Senate
315 Senate Russell Office Building
Washington, DC 20510
Dear Senator Kennedy:
Because a U.S. - Mexico Free Trade Agreement will impact our industry, and its contributions
to this nation's economic viability, we seek your support of the preparatory process that can result in
free trade with our Southern neighbor, as is demonstrably working with our Northern neighbor,
Canada.
Our request is for your support of a Fast-Track approach, which Congress has authorized in the
past, so that President Bush can pursue a U.S. - Mexico Free Trade Agreement.
The Congress, after considerable and proper debate, supported President Bush in his course of
action on Kuwait. In that instance, the President, and his supporters, would have been properly held
accountable if the actions taken proved unsuccessful. Securing U.S. - Mexico Free Trade may be even
more consequential.
The ultimate agreement, which Congress retains the power to accept or reject, may include items
the construction industry may not like, want or may even oppose. However, we trust our government,
and its structure, to serve the national interest, and we believe that interest can be best served by
reposing trust in the Executive Branch to negotiate a proposed agreement.
We believe a U.S. - Mexico Free Trade Agreement will be in the best interests of our country
because we will then have a neighbor more like our neighbor to the North. That stronger and
healthier Mexico will have living standards that will automatically trigger a healthier environment
throughout this Hemisphere.
Therefore, we respectfully urge your support of President Bush's request for a Fast-Track
approach to a U.S. - Mexico Free Trade Agreement.
Sincerely,
Marin M.Blach
Marvin M. Black
President
THE Ac GENERAL CONTRACTORS
OF
AMERICA
SKILL
INTEGRITY
RESPONSIBILITY
THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA
1957 E Street, N.W.
Washington, D.C. 20006
(202) 393-2040
FAX (202) 347-4004
MARVIN M. BLACK, President
ROBINS H. JACKSON, Senior Vice President
BYRON L. FARRELL, Vice President
LAWRENCE J. McGOUGH, Treasurer
HUBERT BEATTY, Executive Vice President
April 19, 1991
The President
The White House
Washington, DC 20500
Dear Mr. President:
Thank you very much for addressing AGC's chapter and national leaders on
April 15.
With total confidence in your leadership, we are committing our full resources in
support of your proper objective of a Fast-Track approach to a U.S. - Mexico Free Trade
Agreement.
On a personal note, it is almost incomprehensible to me that there are any in our
society who 1) miss the point that a strong Mexican economy can only help strengthen
the U.S. economy; and 2) have the credentials to question whether the negotiators you
appoint will not fully understand this nation's best interests.
You were right on Kuwait. You are right on Mexico. You will be right, too,
when all trade barriers with Latin America are removed and the benefits of free and
open market economies raise living standards throughout this Hemisphere.
Sincerely,
Marrin M.Blach
Marvin M. Black
President
MB/mg
THE FULL SERVICE CONSTRU CTION ASSOCIATION FOR FULL SERVICE MEMBERS
NATIONAL
ASSIGNTED THE GENERAL CONTRACTORS
OF
AMERICA
SKILL
INTEGRITY
RESPONSIBILITY
Volume 43, Issue 10, April 29, 1991
Route to:
A message from AGC President Marvin Black
"Are you sharing this newsletter with those in
your company that need to see it?? If not, please
do so by using the Route to lines above."
AGC's Support For President Bush On Fast-Track U.S.-Mexico Trade
Agreement - President Bush asked for AGC's support on this important issue when addressing AGC's
Leadership Conference at the White House on April 15. The essence of AGC's follow-up action in letters to
all members of Congress is (1) extend earned trust to
the President, (2) improved economic conditions in
Mexico and a standard of living that will rise
accordingly will also improve the environment
throughout the Hemisphere, and (3) the economies of
the three nations will thrive when the U.S. has
economic strength at its southern border that matches
Canada's vitality.
AGC members are urged to now contact their
Congressional representatives in support of President
Bush's request for Congressional approval of a
fast-track approach to U.S.-Mexico Free Trade. The
agreement negotiated would, of course, be subject to
an up or down vote by Congress.
Legislative Update - The Striker Replacement bill (H.R.5) has been reported out by the House
Education and Labor Committee. The legislation prohibits companies from hiring permanent replacements
for striking workers during economic strikes. The Committee agreed on an amendment offered by Rep. Pat
Williams (D-MT) stating that the Striker Replacement legislation would not apply in non-union settings.
The Williams Amendment is perceived by some members of Congress as a "fix." However, it does not
alter the legislation's basic end result of encouraging strikes. In reality, the amendment would give
non-union employees great incentive to organize or agree to collective representation in order to prevent
being permanently replaced. continued on page 4
AGC Past President Paul Emerick succumbs to heart attack -- page 3
Congressional leaders share insights on transportation funding with AGC leaders
AGC NATIONAL NEWSLETTER
ISSN 0161-133X
PUBLISHED EVERY OTHER WEEK
COST: $100/YEAR
ASSOCIATED GENERAL CONTRACTORS OF AMERICA
1957 E STREET, N.W., WASHINGTON, DC 20006-5199
(202) 393-2040
FAX: (202) 347-4004
SECOND CLASS POSTAGE PAID AT WASHINGTON, DC
© AGC 1991
POSTMASTER: SEND ADDRESS CHANGES TO AGC NATIONAL NEWSLETTER, 1957 E STREET, N.W. WASHINGTON, DC 20006
AGC National Newsletter, April 29, 1991
2
Will Recession And Infrastructure Needs Combine For Massive New
Investments? In conversations with key Democratic leaders at a Democratic Party dinner the night of
April 24 in Washington, AGC officials were told of virtual Democratic unanimity on the need to again
increase highway user fees. Most frequently mentioned was another 5-cent increase. Evident throughout
the discussions was that AGC's decade-long campaign to secure massive and necessary infrastructure
investment is now converging with increased fears of deeper recession and the need to address it now.
AGC Testimony To Congress:
Reps. Thomas Foley & Robert Roe
Increase User Fees To Meet Highway
Call For 5-Cent Gas Tax Increase -
Needs - As reported in the April 15 AGC National
House Speaker Thomas Foley (D-WA) and Rep.
Newsletter, AGC Highway Division Chairman
Robert Roe (D-NJ), House Public Works and
Robert Desjardins (Cianbro Corp.), testified April 18
Transportation Committee Chairman, told the
before the Subcommittee on Surface Transportation
AFL-CIO's Building and Construction Trades
on reauthorization of highway and transit programs.
Department that the U.S. needs a 5-cent federal
In Mr. Desjardins' testimony, AGC called for a gas
gasoline tax increase solely for transportation
tax increase to help address the backlog of
infrastructure improvements. Reps. Foley and Roe
infrastructure needs and stimulate the economy by
said the increase is needed to create new jobs and
creating jobs. AGC's testimony also made the
spur economic growth.
following points:
Rep. Foley stated that transportation
AGC supports Congressional efforts to increase
improvements must be a high priority domestic issue
highway spending through a draw down of the
if the U.S. intends to be a global competitor. He also
trust fund balance;
called for the spending down of the Highway Trust
AGC urges that the 2.5 cent gas tax lost to the
Fund, but added that highway funding would still be
general fund last year be dedicated to the Highway
insufficient to address the nation's highway and
Trust Fund; and
bridge problems.
AGC opposes the continuation of the
Rep. Roe said that the infrastructure improvements
Disadvantaged Business Enterprise (DBE) program.
which a 5-cent gas tax increase would fund could
AGC Repeats Call For Increased
restore the production and manufacturing industries
thus increasing the nation's economic
Funding At Regional Highway
competitiveness. "If we're rebuilding Kuwait, can't
Hearing - Past President Ben M. Hogan, Jr.
we raise a nickel for America?" Rep. Roe said. He
testified on Monday, April 22, 1991 in Fort Smith,
stated that the nickel increase could create almost
Arkansas at a field hearing held by the House
250,000 jobs, but the money would need to be spent
Public Works and Transportation Committee. Mr.
soon to counteract the decline in the economy.
Hogan (Ben M. Hogan Company) repeated AGC's
Rep. Dan Rostenkowski (D-IL), House Ways and
call for increased investment in the nation's
Means Committee Chairman, has also called for an
transportation infrastructure as a needed step to
increased gasoline tax saying he would support a
economic recovery. The hearing is part of a series
10-cent per gallon gas tax increase divided between
of regional field hearings held by the Committee to
infrastructure improvements and deficit reduction.
give people outside the "beltway" an opportunity to
comment on highway program reauthorization.
Senate Highway Reauthorization Bill Released -
The draft legislation drastically shifts the emphasis of the Federal-aid highway program from
construction and reconstruction to improving the "efficiency" of the entire existing surface transportation
system. The Senate bill was introduced by Senators Burdick (D-ND), Moynihan (D-NY), Chafee (R-RI),
Symms (R-ID) and Lautenberg (D-NJ).
Following are the proposed funding levels for the Federal-aid highway program under the proposals
which have been advanced so far in the 102nd Congress (in billions):
FY 92
FY 93
FY 94
FY 95
FY 96
Total
Administration
$16.1
$16.4
$17.0
$18.4
$20.4
$ 88.3
Senate
$15.5
$16.0
$16.8
$18.4
$20.2
$ 86.9
House Public
$21.0
$24.5
$24.5
$24.5
$24.5
$119.00
Works Budget Proposal
AGC National Newsletter, April 29, 1991
3
AGC Testimony On Construction
Paul Emerick AGC Past President.
Safety and Health - Michael Timura
Mr. Emerick, who passed away April 24, was a leader
(Frank E. Downes Construction Company),
in commercial, industrial, and institutional
Chairman of AGC's Safety & Health Committee,
construction throughout the
will testify on April 30
Pacific Northwest for more
before the House
than 35 years. Mr. Emerick
Education and Labor
served as President of AGC
Subcommittee On Safety
of America in 1989 following
and Health on the
approximately 20 years of
"Construction Safety,
AGC activism. His year of
Health, and Education
leadership at AGC was
Improvement Act of
marked by significant
1991." AGC will testify
improvements in
that the proposed
construction training and
legislation (H.R. 1063)
education. Mr. Emerick led
will not serve to improve
efforts to establish the Construction Industry
construction safety and health because it
Workforce Foundation and served as its president.
deemphasizes employer/employee safety
He served on numerous AGC of America committees
training and education; imposes needless
and chaired the Manpower & Training Committee
recordkeeping requirements; mandates written
and Contract Documents Coordinating Committee.
safety and health programs to include specific
He was active in AGC's Oregon-Columbia Chapter
requirements resulting in a "one size fits all"
which honored him four times as National
approach to improving safety; and does not
Committeeman. Mr. Emerick is survived by his wife,
address drug use and employee accountability.
Hazel, daughters Diane Kunzel, Paula Peoples, Loree
In his testimony, Mr. Timura also states AGC's
Anderson and Jenny Entenman, as well as his son,
strong commitment to safety in the workplace
Steven Emerick. The family suggests that any
and calls for the expansion of the Occupational
remembrances of Mr. Emerick be made to: The Paul
Safety and Health Administration's education
Emerick Vocational Training Foundation, c/o
and training resources. AGC has dedicated the
Oregon-Columbia Chapter, AGC, 9450 S.W.
90's as the Decade of Safety and Health.
Commerce Circle, Wilsonville, OR 97070.
OSHA/Industry Task Forces Meet
Paul King Appointed To OSHA
- AGC President Marvin Black was in
Committee - Paul King (Pizzagalli Construction
Washington April 23 to participate with other
Co.) Chairman of AGC's Safety
construction association officers and Assistant
Engineers Advisory Committee
Secretary of Labor Gerard Scannell in meetings of
has been appointed to the
the Occupational Safety and Health
Occupational Safety and Health
Administration (OSHA)/Industry Task Forces on:
Administration's Advisory
Substance Abuse;
Committee on Construction
Education and Training; and
Safety and Health. The
Employee Accountability.
Committee discusses regulatory
President Black is Chairman of the Education
issues impacting construction
and Training Task Force which is charged with
safety and health and makes
improving employer and employee safety and
recommendations to the
health education and training.
Department of Labor. The 2-year appointments to the
Last fall, Assistant Secretary Scannell
Committee are made by the Secretary of Labor and
announced OSHA's intention of meeting with
approved by the White House.
construction industry principals on a regular
AGC
Back At The White House -
basis to achieve the following objectives: identify
AGC Executive Vice President Hubert Beatty
high priority safety and health problems in the
attended a Roosevelt Room meeting at the White
construction industry; designate task forces to
House on April 24 with executives from
address the problems; and identify potential
approximately 20 other business interests.
solutions so that OSHA can take the appropriate
administrative steps to correct the problems.
The Roosevelt Room meeting was also addressed
by President Bush. Appreciation was expressed for
See Newsletter addendum to order
AGC's support of President Bush's fast-track
approach to a U.S.-Mexico free trade agreement. (See
AGC's newest safety video
At
The
Top:
page 1)
Stairway & Ladder Safety
AGC National Newsletter, April 29, 1991
4
AGC CHAPTER ACTIVISTS
Michigan Fly-In Successful Again -
AGC Of Virginia Members Visit
Over 40 contractors from two of AGC's Michigan
Washington - Nearly 40 members of the AGC
Chapters (Michigan Road Builders and Detroit
of Virginia were in Washington on April 23 to meet
Chapter) met with the Michigan Congressional
with their Congressional delegation about key
delegation April
legislative issues impacting construction including
17 and 18 in
civil rights,
Washington,
striker
D.C. as part of
replacement,
the Chapters'
banking issues,
annual "fly-in."
and public
The Chapters
works funding
were briefed by
legislation. The
AGC of America
chapter
staff on civil
representatives
rights and striker replacement legislation, highway
were briefed at
program and clean water act reauthorization and
AGC of America by senior staff members and
other key issues. The participants also met with
hosted a Capitol Hill luncheon attended by
officials from the General Services Administration
members of the Virginia Congressional delegation.
and Federal Highway Administration.
AGC Building Division Participates
More AGC Comments On ADA
In GSA Design-Build Focus Group
Regulations - AGC provided a third set of
Meeting - William Choquette (Gilbane Building
comments on Title I of the Americans with
Co.), J. William Ernstrom (Ernstrom & Estes),
Disabilities ACT (ADA) to the Equal Employment
Joseph H. Jarboe (The George Hyman Construction
Opportunity Commission (EEOC) on April 26.
Co.), Thomas J. McGough (McGough Construction
These comments emphasized that the EEOC must
Co.), and James H. Stephens (Tribble and Stephens
find practical solutions to the many problems
Co.) were in Washington, D.C. recently to
created by the statute's complex provisions,
participate in the General Services Administration
including its requirement for the "reasonable
(GSA) Design-Build Focus Group meeting. The
accommodation" of disabled applicants and
meeting was held to review industry comments
employees. AGC noted that construction jobsites are
and GSA's response to its "Request for Proposal"
unique, that construction safety and health have to
guide on Design-Build.
remain high priorities, and that Congress did not
On a related subject, AGC's Project Delivery
intend the ADA to interfere with necessary efforts to
Systems Committee has finished revising its
control the cost of workers compensation insurance.
Design-Build Guidelines pamphlet and copies will
In separate comments provided to the Justice
be made available in the near future.
Department on April 23, AGC urged the
Department to make it clear that Congress intended
AGC Testimony On Energy And
to exempt the construction industry from all of
Water Development - AGC is testifying to
Title III of the ADA, regarding access to "public
the Senate Committee on Appropriations
accommodations" and "commercial facilities."
Subcommittee on Energy and Water Development
The Architectural Transportation Barriers and
on fiscal year 1992 appropriations for energy and
Compliance Board (ATBCB) had already proposed
water programs. AGC's testimony supports the
to exclude construction from the accessibility
Administration's proposed $200 million increase in
guidelines that Title III requires the Board to
funding for the Corps of Engineers' civil works
establish. AGC told the Justice Department that
construction program in 1992. AGC also expresses
Congress also intended to exclude construction from
concern that the federal government's "no net less"
the remainder of Title III.
wetlands program should not become a "no new
growth" policy.
Legislative Update from page 1
The House Public Works and Transportation Committee also reported out the Striker Replacement
legislation. The House Energy and Commerce Committee will consider the bill in early May. In the Senate,
the Labor & Human Resources Committee is awaiting final consideration of the legislation.
On April 24, the Senate Labor and Human Resources Committee approved the Family and Medical
Leave Act (S.5) which is identical to the bill vetoed last year. Republicans on the Committee will attempt to
defeat the bill during Senate floor consideration.
ASSIGNTED THE Ac GENERAL CONTRACTORS
OF
AMERICA
SKILL
INTEGRITY
RESPONSIBILITY
SPECIAL ADDENDUM to April 15, 1991 AGC National Newsletter --
AGC AT THE WHITE HOUSE
President Bush Again Addresses AGC Leadership at White House
Record Attendance at Annual Leadership Meeting of Chapter-National AGC Officers.
Transportation Secretary Skinner Also Captivates Audience at White House.
Kuwait Reconstruction Market Is $30-$50 Billion Less Than Originally Projected.
Senate Finance Committee Chairman Bentsen and Rep. Fawell Engage in Give and Take
INSURANCE or THE UNITED
AGC's 1991 Leadership Conference for Chapter Presidents, Vice
Presidents and AGC of America Officers reached another plateau last
week when the group was invited back to the White House for an
Secretary of Transportation Sam
address by President Bush for the second consecutive year. As he
Skinner at the White House with
privately greeted AGC President Marvin M. Black, Senior Vice
AGC for the second consecutive year.
President Robins H. Jackson and AGC Executive Vice President Hubert
Beatty before his address, President Bush said, "Well, here we are again
this year."
In his White House speech to the AGC Leadership Conference,
Coverage of AGC's 1991
President Bush repeated the message of his video address to last
month's AGC Convention by again thanking association members for
Leadership Conference
their strong support on numerous issues. President Bush's widely
at the White House --
televised remarks largely addressed the pending railroad strike, which
Continued on page 2.
he described as a threat to economic recovery.
AGC NATIONAL NEWSLETTER
ISSN 0161-133X
PUBLISHED EVERY OTHER WEEK
COST: $100/YEAR
ASSOCIATED GENERAL CONTRACTORS OF AMERICA
1957 E STREET, N.W., WASHINGTON, DC 20006-5199
(202) 393-2040
FAX: (202) 347-4004
SECOND CLASS POSTAGE PAID AT WASHINGTON, DC
©
AGC 1991
POSTMASTER: SEND ADDRESS CHANGES TO AGC NATIONAL NEWSLETTER, 1957 E STREET, N.W. WASHINGTON, DC 20006
AGC at the White House
+
Contractor-to-Contractor Communication
President Bush requested and
received AGC support of a fast-track
approach to a U.S.-Mexico Free Trade
Agreement with emphasis on the new
markets and opportunities that will be
created by the establishment of
barrier-free trading from the Yukon to
the Yucatan. The President pointed
out that Congress will have an
opportunity for an up or down vote on
the ultimate agreement but also made
Sen. Bentsen with AGC of America officers
the point that the negotiating process
would break down if those engaged in
On that subject, an AGC official commented that the association
it had to secure point-by-point
has been swamped with inquiries from employers, employees and
agreement by their Legislatures on the
purveyors about access to construction opportunities in Kuwait.
intricacies of negotiation.
AGC's experience, to date, is that interest in this market
Like President Bush, Transportation
overwhelmingly exceeds the construction opportunities that have
Secretary Sam Skinner addressed the
yet surfaced while conjecture prevails and at a time when many
AGC Leadership Conference in the
Kuwaiti business interests have yet to return to their liberated
White House for the second
country.
consecutive year. He captivated his
Senate Finance Committee Chairman Lloyd Bentsen (D-TX)
audience with a combination of gentle
addressed several subjects including the U.S.-Mexico Free Trade
humor and a strong case for a massive
Agreement, health care cost containment and Subchapter S
increase in transportation
corporations. Following his address, Chairman Bentsen was
infrastructure investment as he
questioned on subjects as varied as Wetlands and access to needed
cogently and dramatically explained
oil resources in the vast Arctic National Wildlife Refuge.
the need for the Bush Administration's
Rep. Harris W. Fawell (R-IL) urged attendees to recognize the
proposal to boost federal, state and
dangers of Striker Replacement legislation and alleged Civil Rights
local investment in transportation
legislation.
infrastructure. Emphasizing
The emphasis that AGC of America now places on intensive
international competitiveness and
exchange of information between AGC chapters and AGC of
productivity, Secretary Skinner
America was initiated in 1967 by then AGC President B.B.
illustrated the need for a
Armstrong, who regarded participation by Chapter Presidents and
transportation network worthy of the
Vice Presidents in AGC of America activities as vital. In 1972, then
world's leading economy when he
talked about "just-in-time" delivery of
parts and material to the automotive
industry, as an example. He said that
inventory costs and production costs
are lowered and productivity is
increased when manufacturers, and
their suppliers, know that supplies
ordered in the morning can be
delivered that afternoon for immediate
assembly. Also reflecting his concern
about the threatened railroad strike,
Secretary Skinner said that such a
strike would have a devastating
economic impact.
Addressing the Kuwait
reconstruction market, Assistant
Secretary of Commerce, Thomas J.
Assistant Secretary of Commerce Thomas J. Duesterberg
Duesterberg, rejected a widely
addressed the Kuwait reconstruction market and stated that
publicized $100 billion estimate of
estimated construction needs are in the $50-$70 billion range
Kuwait's reconstruction needs and
not the $100 billion range so widely publicized earlier. Also
indicated that the real needs were
on the dais were White House official Jeff Vogt (center) and AGC
probably in the $50-$70 billion range.
President Marvin Black.
2
AGC at the White House
+
Contractor-to-Contractor Communication
Shown with Congressman Harris Fawell
(R-IL) are (left to right): Erick Haglund,
Security Building, Northern IL Bldg. Contr.
Assn.; Joseph Scandroli, Scandroli
Construction, Northern IL Bldg. Contr. Assn.;
Leroy Tinsley, Wabash Asphalt, AGC of IL;
James P. Bruner, Illinois Valley Paving, AGC
of IL; Rep. Fawell; AGC Vice President Byron
L. Farrell, Helmkamp Construction Co.;
Howard Gallay, ACM Associates, Chicago
Bldrs. Chapter; Todd Harris, J.C. Harris &
Sons, Fox Valley Gen. Contr. Assn.; Glenn
Lindsay, L.E. Lindsay Construction, Southern
IL Bldrs. Assn.
AGC President S. Peter Volpe suggested that the association conduct a series of meetings annually with
Chapter Presidents and Vice Presidents, and this program got under way under the leadership of the late J.N.
Matich in 1975 when AGC Officers met with chapter leaders over a five-day period in Washington, D.C., St.
Louis, Denver and San Francisco. These meetings were.combined.and moved to Washington, D.C.-where
President Reagan addressed the AGC leaders in 1985 at the White House followed by a similar meeting in
1986, also addressed by President Reagan at the White House.
AGC's successful efforts in 1987 to override President Reagan's veto of badly needed highway legislation
kept AGC off the White House schedule in 1987, but that did not prevent President Reagan from inviting the
AGC leaders to the White House during their 1988 Leadership Conference.
In 1990, on April 24, AGC was again honored by a White House briefing addressed by President Bush.
However, these meetings go far beyond Presidential or Congressional briefings and serve to facilitate open
exchange of information on the management of the association and the development of its programs and
policies at sessions where contractor-to-contractor discussions prevail. Subjects discussed this year included
membership recruitment and retention, chapter operations, AGC of America and chapter accomplishments,
workers' compensation and safety.
Several chapter officers, while expressing appreciation for the depth of the
association's programs, also indicated that the association needs to do more
to help ensure that members who do not have the opportunity to attend
national meetings can become better acquainted with the association's
services. In this regard, they suggested that AGC of America acquire the
resources to send specialists to chapters on a more regular basis to help
secure better understanding of the association's programs and even wider
support for them.
Carl V. Petronio, Allied Bldrs, New
York State Bldg. Chapter
(Left to right): Ronald J. Gafford, Austin Commercial, Dallas Chapter;
Steve Luebbehusen, JBM Builders, Fort Worth Chapter; Joe R. Walker,
J.W. Bateson Co., Dallas Chapter; Larry Frymire, The Frymire
Company, Fort Worth Chapter; Sen. Bentsen; Vic McNallie, Hensel
Phelps Construction, Austin Chapter; Michael Novak, Contemporary
Constructors, San Antonio Chapter; Paul Snider, C.P. Snider
Robert Desjardins, Cianbro Corp.,
Construction, Texas Building Branch.
AGC of Maine.
3
AGC at the White House.
+
Contractor-to-Contractor Communication
Steve Helfer, Opus South Corp.,
Thomas J. Folk, T.L. James & Co. Inc., Louisiana AGC
AGC of Mid-Florida
Carl Woods Jr., C.C. Woods
Walt Gamble, Gamble and Pyritz
Ralph Eggleston, Jaynes Corp.,
Construction, Carolinas AGC
Construction, Oregon-Columbia
New Mexico Building Branch
Chapter
(Left to right) Pete Hodgson, Hodgson Construction,
AGC of Calif.; Sen. Bentsen; and Dave Hawley, Kasler
Corp., AGC of Calif.
John L. Tocci, Tocci Bldg. Corp.,
AGC of Massachusetts
Chapter officers
shared in an open
forum discussion
with AGC of
America officers.
4
ASSIGNATED THE GENERAL CONTRACTORS
OF
AMERICA
SKILL
INTEGRITY
RESPONSIBILITY
Volume 43, Issue 9,
Route to:
The Week of April 15, 1991
AGC Meets With President Bush Again
This was the second consecutive
year that the Annual AGC
Leadership Conference has been
addressed by the President of the
United States at the White House
and the 5th time in the past 7 years.
For complete news of the
conference, please see the special
addendum to this newsletter.
Secretary of Transportation Samuel Skinner and AGC President
Marvin Black with President Bush.
AGC Testimony On Military Construction Appropriations
AGC testimony to the House Appropriations Committee on fiscal year 1992 military construction
appropriations: urged that the Administration's budget request of $8.4 billion be enacted because of the
importance of maintaining the nation's stock of military infrastructure; commended Congress for recent
passage of legislation that requires DoD to lift the moratorium on military construction and again urged that
the moratorium be lifted;. recommended an exemption for military construction from the Section 1207
Program that sets aside 5 percent of all DoD procurement projects for small disadvantaged businesses
(SDBs), because in the construction industry, SDB participation already exceeds the requirement;
recommended an increase in the Davis-Bacon Act threshold from $2,000 (in place since 1935) to a $250,000
threshold, in the absence of Davis-Bacon Act repeal which AGC supports; and urged Congress to reject the
DoD's proposed 1993 budget investment level for military construction and to increase that level to meet
actual needs.
Update on Military Construction Moratorium -
For military construction in Europe, Korea, Japan and domestic military bases subject to closing, military
construction authorization must come from the Secretary of Defense.
On other domestic military construction authorizations for construction can be provided by the individual
services Secretaries.
The bottom line is that there is a slight loosening of the moratorium but the lifting of it for industry
projects is concentrated in Washington, D.C. not the local level. See Government Procurement Bulletin
#91-1 to Chapters, 4/12/91.
Alleged "Civil Rights" and Real Special Preferences -- Pages 2-3
AGC NATIONAL NEWSLETTER
ISSN 0161-133X
PUBLISHED EVERY OTHER WEEK
COST: $100/YEAR
ASSOCIATED GENERAL CONTRACTORS OF AMERICA
1957 E STREET, N.W., WASHINGTON, DC 20006-5199
(202) 393-2040
FAX: (202) 347-4004
SECOND CLASS POSTAGE PAID AT WASHINGTON, DC
©
AGC 1991
POSTMASTER: SEND ADDRESS CHANGES TO AGC NATIONAL NEWSLETTER, 1957 E STREET, N.W. WASHINGTON, DC 20006
AGC National Newsletter, The Week of April 15, 1991
2
"Civil Rights" Proposals -- Real World Getting Inside the Beltway - For the past
several days, the Washington Press (and other reporting) has been playing up negotiations between some
large corporations and a Civil Rights Coalition and trying to give the impression that near unanimity exists
on a resolution of the "debate." Reports have also surfaced that Senator Kennedy was delaying introduction
of his 1991 "Civil Rights" proposal so that it might reflect such "unanimity." However, at press time reports
are surfacing that some of the big corporations allegedly engaging in the "unanimity negotiations" have
disengaged.
Other press reports increasingly reflect growing public and some political disenchantment with the entire
subject because the majority of the American public is beginning to view the process as a further extension of
special preferences. Increasingly, the effort this year to recast the Kennedy/Hawkins "Quota Bill" of last year
as an effort to protect the rights of women lacks resonance.
A statement issued Thursday, April 18, by Peter Cockshaw, National Labor Analyst and Publisher,
(Cockshaw's Construction Labor News + Opinion) on the "Civil Rights" issue was pungently to the point. He
said, "I get calls from all over America. I talk with construction contractors at conventions across the length
and breadth of this nation. They are smothered in litigation or threats of litigation. They have had it with
special preference procurement quotas which the double-speak
perpetrators of quotas cutely call "goals." Too many of them have
also been "hosed" by GFCCP and Executive Order 11246, and they
are not about to sign on to any version of currently proposed "Civil
Rights" legislation. It is an understatement to say that they are
furiously indignant. Here's my view of the subject: Too many of
America's big corporations, some of which think they can cut a
deal with the Ralph Neas Civil Rights' coalition, have long since
learned to live with quotas, because too many of them, and their
retinues of attorneys, can readily accommodate to quota
requirements through their huge personnel offices. The real
bones in their throats are their fears of huge, uncapped jury
awards induced by tearful witnesses. But, it has to be
remembered that construction contractors also have bones in their
ptier
throats. Unlike the big corporations, they do not have floors full
of lawyers to defend them.
"Just complying with present mandates of OFCCP, Executive Order 11246 and a host of special
procurement quotas is a mindboggling, costly burden. The threat of more employment litigation via the
so-called "Civil Rights Act" send employers into convulsions. That's because contractors know the minute
they get involved in litigation, they've already lost! Contractors do not have capital to endure long court
hassles. Thus, their only "defense" is to hire by quotas. But once employers resort to quotas, they become
ensnared in a Catch 22 situation.
"By adhering to hiring-by-quotas mandated in this year's "Civil Rights" bill, contractors invite suits from
blue collar America. When employees are denied job opportunities because of quotas based on race and sex
-- not merit or qualifications -- they have a right to legal redress.
"Anyone who gives special preference to one citizen at the expense of another puts themselves at risk.
That is Cockshaw's opinion, and I guarantee you it is the opinion of the no longer silent majority. Every
recent survey we've seen reveals one central finding. Citizens polled believe civil rights leaders are more
interested in special preferences than equal opportunity.
"Both middle class and blue collar voters now see pervasive reverse discrimination in the workplace.
The proposed "Civil Rights Act" will further exacerbate unfair hiring/promotion practices and ignite
another explosion in employment litigation."
AGC Testimony On Clean Water - Municipal Utilities Division
Chairman A.E. Shull (A.E. Shull & Co., Tyler, Texas) testified before the Water
Resources Subcommittee of the House Public Works and Transportation Committee
on April 17. AGC's testimony stressed the need for the federal government to provide
sufficient funds for states to capitalize their revolving loan funds to finance the
construction of needed wastewater treatment facilities. AGC cited an EPA study that
identified wastewater needs of $83.5 billion and AGC mentioned an additional
$15.8 billion in needs identified by the states. The testimony mentioned an
additional $100 billion in needed construction to correct combined sewer overflow
problems that are not included in the EPA study figures.
MR. SHULL
AGC National Newsletter, The Week of April 15, 1991
3
AGC Testimony On Surface Transportation - On April 18, 1991, Robert Desjardins (Cianbro
Corp.), AGC Highway Division Chairman, testified before the Subcommittee on Surface
Transportation on reauthorization of highway and transit programs. Mr. Desjardins made
the following points:
Congress must act to stimulate the nation's economy and create jobs by increasing
investment in our nation's highways;
AGC supports Congressional efforts to increase highway spending through a draw down of
the trust fund balance, recapturing the 2.5 cent gas tax lost to the general fund last year and
an increase in highway user fees to address unmet highway needs; and
AGC opposes the continuation of the Disadvantaged Business Enterprise (DBE) program.
On the subject of Disadvantaged Business Enterprise, ARTBA testified that it "supports a
federal initiative for a program of assistance, but believes the current Disadvantaged
Business Enterprise (DBE) program should be revised to ensure that it is aiding firms that are truly in need of
assistance. A meaningful DBE program should adequately address management training, technical assistance,
bonding and graduation requirements, among others. In addition to properly certifying disadvantaged firms,
ARTBA believes the program should determine if participating firms have the capability to carry out the work
they certify they can perform. By determining the capability of eligible firms, an effective DBE participation level
established ARTBA supports the language the Administration bill that would-continue a-single-goal-
program."
Infrastructure Symposium Held in Washington, D.C. - The National Association of Home
Builders coordinated an April 8-9, 1991 infrastructure symposium in Washington, D.C., sponsored by more than
40 organizations. Among the featured speakers were Secretary of Transportation Samuel Skinner, Kitsap
County Commissioner John Horsley, nationally-known economist David Aschauer, and Representative Beryl
Anthony (D-AR). The symposium covered many subjects including federal, state and local government roles in
infrastructure, public-private ventures, and infrastructure financing.
GENERAL
GENERAL
DEPARTMENT
CONTRACT
ASSOCIATED
THE
CONTRACTORS
Nationally-known economist
Kitsap County, Washington
David Aschauer
Commissioner John Horsley
(former National Association
Transportation Secretary Samuel Skinner
of Counties President)
498,000 Construction Jobs Lost in 10
Helper Regulations
Months - According To AGC's March 1991 Economic
Fact Sheet For The U.S. --
Apprenticeship Revisions
Between May of 1990 and March of 1991 -- 498,000 jobs
Blocked - President Bush's April 10
have been lost in the construction industry -- representing
signature on the Dire Emergency Supplemental
almost 10 percent of the industry's total employment.
Appropriations bill means that:
In February of 1991, the construction industry
The Department of Labor cannot spend any
unemployment rate reached 21.4 percent, 8 percent higher
money to implement the Davis-Bacon helper
than construction unemployment at the same time in 1990.
regulations which the construction industry
favored.
Between December 1990 and March 1991, construction
employment dropped by 195,000 jobs.
The Department of Labor is denied funding
to proceed with the issuance of
apprenticeship revisions.
AGC's 34th James D. Marshall Course - AGC has scheduled the 34th James D. Marshall
(JDM) Course for June 3 - 7, 1991 at AGC of America. The course is designed for chapter staff and provides
opportunities to get to know their AGC of America colleagues during five days of intensive coverage of the
association's programs and services. Details were sent to chapters in an April 16, 1991 mailing.
AGC National Newsletter, The Week of April 15, 1991
4
AGC-Basic Trades Committee
AGC CHAIRMEN OF THE YEAR -
At AGC's 1991 Convention last month, four
of 68 national committee chairmen were
named chairmen of the year and they are
EXIS
Paul King, Chairman,
Francis W. Madigan, Jr.,
AGC's latest meeting with the Basic Trades was held in Bal
Safety Engineers Advisory
Chairman, Collective
Harbour, Florida, February 14, 1991. Seated from left to right
Committee
Bargaining Committee
are Francis W. Madigan, Jr., Chairman, AGC Collective
Bargaining Committee and Co-Chairman, AGC-Basic Trades
Committee; Frank Hanley, Jr., Operating Engineers' General
President, and Co-Chairman, AGC-Basic Trades Committee;
Robert Holton, Cement Masons' General President; and Sigurd
Lucassen, Carpenters' General President. Also in the photo are
AGC' Vice President Byron Farrell and Past Treasurer Robert
Fay. The next AGC-Basic Trades Committee meeting is
scheduled for May 14th in Washington, D.C.
Presidential Award For AGC Past
Louis Selig, Jr., Chairman,
Michael Timura,
President John E. Healy, II
ACEC-AGC Joint
Chairman, Safety and
Committee
Health Committee
AGC Past President John
Rebuild America Coalition
E. Healy, II (1971)
pictured with Secretary of
Steering Committee Meets -
Labor Lynn Martin and
The Rebuild America Coalition Steering
Rep. William F. Goodling
Committee met in Washington, D.C. on April 9.
(R-PA), ranking minority
The meeting was chaired by Coalition Chairman,
member of the House
Education and Labor
Mayor Maynard Jackson of Atlanta, Georgia. It
Committee -- receiving
was agreed that the Coalition must develop
the u.s. Department of
innovative strategies to elevate the status of
Labor's "Job Training
infrastructure as a national agenda item. A task
Partnership Act" (JTPA)
force was formed to assist the Coalition in
Presidential Award for
marketing the infrastructure message. AGC
Outstanding Private
President Marvin Black and Executive Vice
Sector Volunteer. Mr. Healy has served as Chairman of the
President Hubert Beatty participated in the
Delaware State Job Training Coordinating Council where he
meeting.
was responsible for the initial organization of JTPA
programs in Delaware.
AGC Congressional Testimony
Vermillion Named Executive
Recent AGC Testimony (February-April)
Director of AGC of Virginia
Impact of Federal Wetlands Policy
Family and Medical Leave
Steven Vermillion has been
named Executive Director
Civil Rights Act of 1991
of the AGC of Virginia. He
Striker Replacement Legislation
was Assistant Executive
Appropriations for Military Construction
Director of the Chapter
Reauthorization of the Clean Water Act
since 1989. Steve is a
former AGC of America
Reauthorization of the Federal-aid Highway
staff member who also had
Program
extensive experience with
Upcoming AGC Testimony (April)
the Michigan Chapter.
Construction Safety and Health Legislation
CONOTRUCTION
NEWS RELEASE
April 17, 1991
Contact: Judy Short,
Director of Public Affairs;
Damian Hill, Associate Dir.
202/393-2040
CONSTRUCTION INDUSTRY GETS WHITE HOUSE ACCESS AGAIN
President Bush Supported on Fast-Track Approach to U.S.-Mexico Free Trade
Agreement
Transportation Secretary Skinner Repeats Call for Massive Transportation
Infrastructure Investment
Commerce Official Indicates Kuwait Reconstruction Needs Substantially Less Than
Earlier Reports
Washington, D.C. -- For the second consecutive year, and the fifth time
in seven years, the national and chapter leaders of the Associated General Contractors
of America were addressed this week at the White House by the President of the United
States and key administration officials.
The Associated General Contractors of America (AGC) is a national trade
association of 33,000 industry firms including 8,000 general contracting firms, the vast
majority of which are family-owned small businesses.
President Bush expressed his concern about the pending railroad strike and
made it clear that such a strike could seriously impair economic recovery.
DEPARTMENT GENERAL UNIVERSITY
Associated General Contractors of America
BE
AMERICA
SKILL
RESPONSIBILITY
INTEGRITY
1957 E St., N.W.
Washington, D.C. 20006
202/393-2040
- 2 -
The construction leaders quickly responded to President Bush's request for
support of a fast-track approach to a U.S.-Mexico free trade agreement and agreed with
President Bush that Congress can effectively exercise its authority by approving or
rejecting the ultimate agreement.
Assistant Secretary of Commerce, Thomas J. Duesterberg, addressing the
Kuwait reconstruction market, estimated construction needs in the $50-$70 billion range
...
not the $100 billion range so widely publicized earlier. An AGC official commented,
"The association has been swamped with inquiries from employers, employees and
purveyors about access to construction opportunities in Kuwait. The reality is that the
interest in this market overwhelmingly exceeds the construction opportunities that have
surfaced to date in that market, where conjecture prevails and where many Kuwaiti
business interests have yet to return to their country."
Transportation Secretary Sam Skinner who also addressed the AGC leaders
at their April 24, 1990 meeting, cogently and dramatically explained the need for the
Bush administration's proposal to boost federal, state and local investment in
transportation infrastructure.
Emphasizing international competitiveness and productivity, Secretary
Skinner illustrated the need for a transportation network worthy of the world's leading
economy when he talked about "just-in-time" delivery of parts and material to the
automotive industry as an example.
- 3 -
He said that inventory costs and production costs are lowered and
productivity is increased when manufacturers and their suppliers know that supplies
ordered in the morning by phone can be delivered that afternoon for immediate
assembly.
Reflecting his concern about the threatened railroad strike, Secretary
Skinner said that such a strike would have a devastating economic impact.
President Bush and Secretary Skinner thanked the AGC leaders for their
past support on key issues and both reflected faith in America's basic strengths and
optimism for a strong economic recovery.
Immediately prior to his White House address to the approximately 200
attendees, President Bush and Secretary Skinner met privately with AGC President
Marvin M. Black, a building and industrial contractor based in Atlanta.. AGC Senior
Vice President Robins H. Jackson, a highway contractor from Waterloo, Iowa... and the
association's Executive Vice President Hubert Beatty.
# # #
ARMED SERVICES COMMITTEE
BOB STUMP
SUBCOMMITTEE ON RESEARCH
3D DISTRICT, ARIZONA
AND DEVELOPMENT
SUBCOMMITTEE ON INVESTIGATIONS
211 CANNON BUILDING
DEFENSE POLICY PANEL
WASHINGTON, DC 20515
(202) 225-4576
Congress of the United States
VETERANS' AFFAIRS COMMITTEE
RANKING MINORITY MEMBER
DISTRICT OFFICE:
house of Representatives
SUBCOMMITTEE ON
OVERSIGHT AND INVESTIGATIONS.
5001 FEDERAL BUILDING
RANKING MINORITY MEMBER
PHOENIX, AZ 85025
(602) 379-6923
Washington, DC 20515
SUBCOMMITTEE ON HOSPITALS
AND HEALTH CARE
April 19, 1991
J. Doug Pruitt
Sundt Corp
P.O. Box 20687
Phoenix, Arizona 85036
Dear Doug:
Thank you for your letter supporting the extension of
"fast-track" procedures for Congressional review of trade
agreements.
You can count on my support for maintaining the "fast-track"
negotiating authority. The Administration should have the
power to negotiate an agreement and submit it to Congress,
as one package, for approval or rejection. It is essential
to preserving our ability to successfully negotiate trade
agreements that will reduce trade barriers and contribute to
growth in the U.S.
Sincerely,
BOB STUMP
Member of Congress
BS:ds
NO. 1 HELMKAMP DRIVE
Helmkamp CONSTRUCTION CO.
WOOD RIVER, ILLINOIS 62095
PHONE: 618/251-2600
FAX: 618/251-5380
April 19, 1991
The Honorable Paul Simon
U.S. Senate
Washington, DC 20510
Dear Senator:
There will be a crucial vote to extend the Fast Track
authorization. I hope you will be in favor of that extension.
Without the Fast Track authority, I do not believe any free trade
negotiations could ever be completed. These negotiations are so
difficult and have so many interrelated clauses that subtle changes
can totally change the meaning. The Fast Track method will still
allow Congresses wishes to be included in the negotiations.
Thank you for your consideration.
Very truly yours,
HELMKAMP CONSTRUCTION CO.
Byron L. Farrell, P.E.
President
BLF/mlc
XC: President George Bush
A DEPARTMENT
ST. LOUIS OFFICE:
P.O. BOX 545, HAZELWOOD. MO 63042
PHONE (314) 731-4171
FAX (314) 731-5988
WASHINGTON
AMERICA
11843 MISSOURI BOTTOM RD.
GDD '91 11:50
618 251 5380 PAGE. . 003
NO. 1 HELMKAMP DRIVE
H
Helmkamp CONSTRUCTION CO.
WOOD RIVER, ILLINOIS 62095
PHONE: 618/251-2600
FAX: 618/251-5380
April 19, 1991
The Honorable Alan Dixon
U.S. Senate
Washington, DC 20510
Dear Senator:
There will be a crucial vote to extend the Fast Track
authorization. I hope you will be in favor of that extension.
Without the Fast Track authority, I do not believe any free trade
negotiations could ever be completed. These negotiations are so
difficult and have so many interrelated clauses that subtle changes
can totally change the meaning. The Fast Track method will still
allow Congresses wishes to be included in the negotiations.
Thank you for your consideration.
Very truly yours,
HELMKAMP CONSTRUCTION CO.
Byron L. Farrell, P.E.
President
BLF/mlc
XC: President George Bush
ST. LOUIS OFFICE:
STATES
11843 MISSOURI BOTTOM RD.
P.O. BOX 545, HAZELWOOD. MO 63042
PHONE (314) 731-4171
FAX (314) 731-5988
H
Helmkamp CONSTRUCTION CO.
NO. 1 HELMKAMP DRIVE
WOOD RIVER, ILLINOIS 62095
PHONE: 618/251-2600
FAX: 618/251-5380
April 19, 1991
The Honorable Jerry Costello
U.S. House of Representatives
Washington, DC 20515
Dear Jerry:
There will be a crucial vote to extend the Fast Track
authorization. I hope you will be in favor of that extension.
Without the Fast Track authority, I do not believe any free trade
negotiations could ever be completed. These negotiations are so
difficult and have so many interrelated clauses that subtle changes
can totally change the meaning. The Fast Track method will still
allow Congresses wishes to be included in the negotiations.
Thank you for your consideration.
Very truly yours,
HELMKAMP CONSTRUCTION CO.
Byrn Byron L. Farrell, P.E.
President
BLF/mlc
XC: President George Bush
DEPARTMENT
ST. LOUIS OFFICE:
11843 MISSOURI BOTTOM RD. P.O. BOX 545, HAZELWOOD. MO 63042 PHONE (314) 731-4171 FAX (314) 731-5988
y
APR PR 11:50
RICHARD C. CLYDE. PRESIDENT
W. CORNELL CLYDE. CHAIRMAN OF BOARD
HAL M. CLYDE. SENIOR VICE-PRESIDENT
WILLIAM R. CLYDE. DIRECTOR
NORMAN D. CLYDE, VICE-PRESIDENT
DAVID E. SALISBURY. DIRECTOR
PAUL B. CLYDE. VICE-PRESIDENT
STEVEN L. CLYDE. DIRECTOR
GLENDON C. JOHNSON. SECRETARY-TREASURER
W. W. CLYDE & CO.
GENERAL CONTRACTORS
P.O. BOX 350
SPRINGVILLE. UTAH 84663
(801) 489-5616 / FAX (801) 489-7653
April 17, 1991
The Honorable Jake Garn
The United States Senate
Washington, D.C. 20510
Dear Senator Garn:
Our country's negative balance of trade with foreign nations is
having a tremendous negative impact on our economy. We currently
have an opportunity to do something about this growing negative
balance of trade in a free trade agreement with our southern
neighbors, Mexico. This agreement would lead to an increase in
American goods and services being exported to Mexico.
However, to assure this trade agreement, President Bush needs your
support of the "Fast Track" Approach to the United States-Mexico
Free Trade Agreement.
I urgently request that you give our President this support.
Best regards,
W.W. CLYDE & CO.
Richard C. Clyde
President
RCC: ifc
Copy to: The Honorable George Bush
President of the United States
The White House
Washington, D.C. 20500
TOTAL P.05
RICHARD C. CLYDE, PRESIDENT
HAL M. CLYDE. SENIOR VICE-PRESIDENT
W. CORNELL CLYDE. CHAIRMAN OF BOARD
WILLIAM R. CLYDE, DIRECTOR
NORMAN D. CLYDE, VICE-PRESIDENT
PAUL B. CLYDE, VICE-PRESIDENT
DAVID E. SALISBURY, DIRECTOR
GLENDON C. JOHNSON, SECRETARY-TREASURER
STEVEN L. CLYDE. DIRECTOR
W. W. CLYDE & CO.
GENERAL CONTRACTORS
P. O. BOX 350
SPRINGVILLE, UTAH 84663
(801) 489-5616 / FAX (801) 489-7653
April 17, 1991
The Honorable Orrin Hatch
The United States Senate
Washington, D.C. 20510
Dear Senator Hatch:
Our country's negative balance of trade with foreign nations is
having a tremendous negative impact on our economy. We currently
have an opportunity to do something about this growing negative
balance of trade in a free trade agreement with our southern
neighbors, Mexico. This agreement would lead to an increase in
American goods and services being exported to Mexico.
However, to assure this trade agreement, President Bush needs your
support of the "Fast Track" Approach to the United States-Mexico
Free Trade Agreement.
I urgently request that you give our President this support.
Best regards,
W.W. CLYDE & CO.
Richard C. Clyde
President
RCC:1fc
Copy to: The Honorable George Bush
President of the United States
The White House
Washington, D.C. 20500
APR 17 '91 17:07
801 489 7653 PAGE. 004
RICHARD C. CLYDE. PRESIDENT
W. CORNELL CLYDE, CHAIRMAN OF BOARD
HAL M. CLYDE. SENIOR VICE-PRESIDENT
WILLIAM R. CLYDE. DIRECTOR
NORMAN D. CLYDE. VICE-PRESIDENT
DAVID E. SALISBURY. DIRECTOR
PAUL B. CLYDE, VICE-PRESIDENT
STEVEN L. CLYDE, DIRECTOR
GLENDON C. JOHNSON, SECRETARY-TREASURER
W. W. CLYDE & CO.
GENERAL CONTRACTORS
P. O. BOX 350
SPRINGVILLE, UTAH 84663
(801) 489-5616 / FAX (801) 489-7653
April 17, 1991
The Honorable D. Wayne Owens
U.S. House of Representatives
Washington, D.C. 20515
Dear Congressman Owens:
Our country's negative balance of trade with foreign nations is
having a tremendous negative impact on our economy. We currently
have an opportunity to do something about this growing negative
balance of trade in a free trade agreement with our southern
neighbors, Mexico. This agreement would lead to an increase in
American goods and services being exported to Mexico.
However, to assure this trade agreement, President Bush needs your
support of the "Fast Track" Approach to the United States-Mexico
Free Trade Agreement.
I urgently request that you give our President this support.
Best regards,
RCC: lfc
Copy to: The Honorable George Bush
President of the United States
The White House
Washington, D.C. 20500
APR 17 '91 17:06
801 489 7653 PAGE.003 .
RICHARD C. CLYDE, PRESIDENT
HAL M. CLYDE. SENIOR VICE-PRESIDENT
W. CORNELL CLYDE. CHAIRMAN OF BOARD
NORMAN D. CLYDE, VICE-PRESIDENT
WILLIAM R. CLYDE, DIRECTOR
PAUL B. CLYDE. VICE-PRESIDENT
DAVID E. SALISBURY, DIRECTOR
W.W.CLTOF A.CO
GLENDON C. JOHNSON, SECRETARY-TREASURER
STEVEN L. CLYDE, DIRECTOR
W. W. CLYDE & CO.
GENERAL CONTRACTORS
P. O. BOX 350
SPRINGVILLE, UTAH 84663
(801) 489-5616 1 FAX (801) 489-7653
April 17, 1991
The Honorable William H. Orton
U.S. House of Representatives
Washington, D.C. 20515
Dear Congressman Orton:
Our country's negative balance of trade with foreign nations is
having a tremendous negative impact on our economy. We currently
have an opportunity to do something about this growing negative
balance of trade in a free trade agreement with our southern
neighbors, Mexico. This agreement would lead to an increase in
American goods and services being exported to Mexico.
However, to assure this trade agreement, President Bush needs your
support of the "Fast Track" Approach to the United States-Mexico
Free Trade Agreement.
I urgently request that you give our President this support.
Best regards,
President
RCC: lfc
copy to: The Honorable George Bush
President of the United States
The White House
Washington, D.C. 20500
APR 17 '91 17:06
801 489 7653 PAGE.002
GENERAL
JOTHE A CONTRACTORS ASSOCIATED
CONSTRUCTOR
SKILL
INTEGRITY
CONSTRUCTION'S MANAGEMENT MAGAZINE APRIL 1991
RESPONSIBILITY
AGC PRESIDENT
MARVIN BLACK
10 OBJECTIVES FOR
THE YEAR AHEAD
OVERCOMING THE
LITIGATION CRISIS
COOPERATION
MUST REPLACE
CONFRONTATION
"Sure, Ford has the
best-digging backhoe.
But that's only
part of the story."
Best-digging backhoes
More C-Series advantages
controls. Plus a choice of center pivot or
That's right! Over the years Ford
And, just to make sure you stay on top
side-shift backhoes with models 555C
backhoes have earned the reputation as the
of the job, here are a few other Ford
and 655C.
best-digging backhoes in the industry.
C-Series advantages:
More production and less maintenance.
Backhoes that are tougher, quicker,
Fast, easy shuttling, with a fully syn-
Long lube intervals. O-ring face seal fittings
smoother, for fast productive digging. But,
for a drier machine.
chronized four-by-four power-reversing
that's only part of the story.
transmission with electronic shuttle.
Operator comfort and convenience. A
Most productive loaders
Fuel-saving Ford-built engines.
sound-suppressed cab with great all-around
visibility.
Ford C-Series tractor loader backhoes
The strongest frame design and a
also give you the most productive loaders.
cast-iron engine oil pan for protection
You can get all the facts from your
The Models 555C and 655C give you extra
from jobsite hazards.
Ford New Holland dealer. He'll be pleased
digging power with 12,000 pounds of loader
to demonstrate for you all the advantages of
bucket breakout. That's a ton and a half
Shift on-the-go four-wheel drive.
a Ford C-Series tractor loader backhoe.
more breakout force than other competitive
Choice of two-lever, three-lever with
He's listed in the Yellow Pages under "Con-
units in the same class.
foot swing, or four-lever backhoe
tractors Equipment & Supplies."
HOT IRON
Uptime all the time
Reader Service No. 1
Ford
FORD
NEWHOLLAND
CONSTRUCTOR
CONSTRUCTION'S MANAGEMENT MAGAZINE
APRIL 1991
Vol. LXXIII, No. 4
FEATURES
16 REBUILDING KUWAIT Repairing the ravages of Iraqi
occupation.
19 COVER STORY: "COOPERATION MUST REPLACE CON-
FLICT" AGC President Marvin Black leads the industry
back to reason.
23 A YEAR OF ACCOMPLISHMENT Annual Report of the
Associated General Contractors of America.
35 A YEAR OF CHALLENGES President Black establishes his
agenda for AGC.
40 THE HIDDEN COSTS OF JOBSITE ACCIDENTS A poor safety
record can be more expensive than you think.
42 BOH BROS. CONSTRUCTION CO. INC. Since 1909
Building the Gulf South. A profile.
46 OWNERSHIP TRANSFER AGC owners of closely held firms
respond to a survey on this critical issue.
48 AGC'S 1991 EXECUTIVE COMMITTEE
52 THE 102ND CONGRESS Legislative challenges and oppor-
tunities.
63 GUEST EDITORIAL: THE STRIKE BILL A dangerous piece
of legislation would destroy the balance of power between
labor and management.
42
DEPARTMENTS
3 PERSPECTIVE
6 NEWSLINE
54 CONSTRUCTION
It can't be right!
Cloudy skies at Business
EDUCATION
5 PRESIDENT'S
in Paradise Convention.
Improving productivity:
MESSAGE
Association business con-
the executive's role
A commitment..
ducted with gusto.
55 NEWSMAKERS
and 10 objectives
14 AGC DIVISION BRIEFS
56 REGIONAL ACTION
53 LEGAL MATTERS
Court upholds terms of
58 NEW PRODUCTS
prime contract
60 CLASSIFIEDS
CONSTRUCTOR/April 1991
1
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Reader Service No. 2
73RD YEAR OF PUBLICATION
EDITOR
PERSPECTIVE
William F. Heavey
Features Editor
Ben L. Herring
Assistant Editor
Barbara L. Hickman
Marketing Director
IT CAN'T BE RIGHT!
special preferences, the contractor has
Terry Banks
The names have changed but the case
yet to obtain even the smallest measure
Production Manager
Richard Bohan
is the same. The real name is O'Donnell
of relief. During this two-year period,
Production
Construction Co. vs. District of Colum-
a coalition of MBEs has successful-
Mark E. Fisher
Barbara Hampton
bia. The underlying question is whether
ly moved to intervene in the case;
SENIOR EDITORS
a smaller and weaker victim of injustice
an individual MBE has successful-
Management Services
John R. Gentille
can defeat a larger and stronger op-
ly moved to intervene in the case;
Master Marketing
ponent. Can a small family business over-
the city has moved to dismiss the
Michael A. Youngblut
come the almost total exclusion of
Construction Markets
case, and in the alternative, for summary
David R. Lukens
non-minority contractors from road con-
judgement against the contractor;
Congressional Relations
struction in the nation's capital? As in
the city has come forward with ex-
Susan J. Loomis
Construction Education
Washington, D.C., where all of your
cessively burdensome requests for infor-
Frank J. Schneller
federal taxes go each year.
mation;
Jobsite Services
Christopher S. Monek
O'Donnell Construction Co. filed a
the city and the MBE coalition have
CONTRIBUTING EDITORS
legal challenge to the U.S. capital's
independently opposed the contractor's
Administration
Christopher M. Blessington
special preference procurement
motion for a preliminary injunction;
Buildings
programs-including its "goals" for DBE
the MBE coalition has filed its own
William Angelo
C. Edward Rowe
participation in federal-aid highway
motion to dismiss the case; and
Capitol Hill
construction-in June of 1989. On its
the city has opposed the contrac-
Edmund Graber
Heidi Stirrup
face, the capital's MBE ordinance re-
tor's efforts to obtain city records.
Joan Huntley LaVor
quires 35 percent of all of the city's con-
Each of these actions has required
Cynthia D. Witkin
Richard Chriss
struction to go to MBEs. It authorizes
O'Donnell Construction to prepare and
Collective Bargaining
prime contract set-asides exclusively for
file some kind of response. As the con-
Christopher P. Engquist
Sandra M. Solowiej
MBEs, in order to meet that "goal." It
tractor's legal expenses have climbed,
Construction Computers
also requires 50 percent of all subcon-
the district court seems to have paid lit-
Ernie Jones
tracts to go to MBEs.
tle heed to the contractor's plight. Even-
Contract Documents
Cheryl Terio
And what makes all of this discrimina-
tually, the contractor had to file papers
Education and Research
tion necessary? The ordinance rests on
in the U.S. Court of Appeals for the D.C.
Ernie Jones
Susan W. Hamlin
a 1974 study that concedes that local
Circuit, just to get a decision-any
Sharene More
MBEs already had an annual volume of
decision-on its motion for a preliminary
Dennis Langley
Energy and Environmental Issues
at least $52 million.
injunction.
Brian Deery
The city's separate "goal" for DBE
Finally, on March 14, 1991, the judge
Heavy Engineering
Stuart Binstock
participation in federal-aid highway con-
ruled on that motion. He denied it, forc-
Highways and Transportation
struction is 37 percent. As in the 50
ing the contractor to take an immediate
Nick Yaksich
Industrial Services
states, this "goal" rests on the Surface
appeal to the D.C. Circuit. At the same
Terry M. Chamberlain
Transportation and Urban Relocation
time, the district court ordered the con-
Infrastructure
Assistance Act of 1987.
Nick Yaksich
tractor to file still more papers in the
International
According to the affidavits filed in the
district court, in response to the city's
Terry M. Chamberlain
case, our nation's capital has set aside
motion for summary judgement.
Manpower and Training
John Heffner
more than 90 percent of all locally funded
When all of this will end, and whether
Craig Grimm
road construction and approximately 49
O'Donnell Construction will ultimately
Municipal-Utilities
Brian Deery
percent of all federally funded road con-
prevail, remains far from clear. AGC of
Newsline
struction exclusively for MBEs for at
America will continue to support O'Don-
Judith Short
Open Shop
least four years.
nell's efforts to obtain justice. Do you
William Isokait
Yet, nearly two years after O'Donnell
think he has had much of that to this
Safety
Peter Chaney
Construction filed its complaint against
point?
Tax and Fiscal Services
our nation's capital city, and a full 18
Richard Chriss
months after this small contractor sought
-By Hubert Beatty, Executive Vice President,
Water Issues
Stuart Binstock
a preliminary injunction against the
AGC, and CONSTRUCTOR Publisher
Brian Deery
Art Director
Ron Flemmings, Ron Flemmings Graphic Design
CONSTRUCTOR (ISSN 0162-6191), published monthly by the Associated General Contractors of America, 1957 E St., N.W.,
Controller
Washington, D.C. 20006. Copyright 1991 Associated General Contractors of America. Member Subscriptions, U.S. and Canada:
G. Ralph Willett
AGC member 12 month subscription, $15/yr.; non member 11 month subscription (no July directory) $36/yr; $60/2 yrs.; $80/3 yrs.;
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12 month subscription (includes July directory) $100. Single issues $4 except July directory. July directory $35 AGC member, $135
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Publisher
Postmaster: Send address changes to CONSTRUCTOR, 1957 St., N.W., Washington, D.C. 20006. Second class postage paid,
Washington, D.C. 20006 and additional mailing offices. 0 Contributions should be mailed to CONSTRUCTOR, 1957 E St., N.W.,
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WITH
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may be reproduced or used out of context without prior, specific approval of and proper credit to the magazine. Advertising materials
should be forwarded to Advertising Department, 1957 E St., N.W., Washington, D.C. 20006-5194, (202) 393-2040, FAX (202)
347-4004.
CONSTRUCTOR/April 1991
3
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Reader Service No. 4
CONSTRUCTOR
PRESIDENTS'
MESSAGE
A COMMITMENT AND 10 OBJECTIVES
On March 19 at AGC's 72nd Annual
Convention in Honolulu, what might be
called a ritual took place. AGC President
Kirk Fordice was presiding at the
Closing Convention Session. Just before
he began to express appreciation for
the opportunity to have served our
association as President for one year,
AGC protocol required me to leave
the head table and go to the meeting
room entrance. A few minutes later, Past Presidents Richard E. Hall and Richard S. Pepper escorted me back to the head
table for a brief ceremony. Kirk Fordice gave me the gavel following which he was presented with a certificate of appreciation
for his services. The mantle of AGC leadership had been passed forward for another year.
The ritual just described wherein AGC's new President is escorted down the aisle with a Past President at each shoulder
is symbolic of the fact that no person approaches the station of leadership in AGC alone. That escorted walk down the center
aisle was the culmination of my years of activity in our association and the starting point in the fulfillment of a commitment
made when the possibility first surfaced of leading our association. That commitment was a guarantee of fair, open and full
attention to the multiple interests that comprise our association.
With that commitment goes the acknowledgement that our efforts in AGC are collective, not individual. In preparing to
meet new responsibilities and now in working to meet them, it is obvious that we associate SO that we may accomplish together
those objectives which are within our reach because they are collective and not individual goals.
Preparing for this new responsibility included review of the objectives of all who preceded me. One aspect of that was to
also review the accomplishments of the past and examine their relationship to earlier objectives.
The lessons thus learned are that objectives have been guideposts to the appropriate path for our association but that the
most meaningful accomplishments have been the consequences of commitment to that which is right.
With that background on commitment, my 10 objectives for the Associated General Contractors of America during the year
ahead are:
Build construction quality;
Build owner confidence in AGC members;
Build strong relationships with all construction industry groups;
Build legislative strength and effectiveness;
Build coalitions to secure adequate investment in the nation's entire stock of public works infrastructure;
Build the construction industry's image;
Build a reputation as an industry with total dedication and commitment to the safety and health of our workforces;
Build relationships with all public awarding agencies;
Build industry awareness of the value of AGC membership; and
Build industry ethical standards.
By now, you will appreciate that the remarkable aspects of these objectives are that they represent AGC goals of many
years that serve as our beacons in living up to our constant commitment to Skill, Integrity & Responsibility.
I seek your support in all of my endeavors on behalf of our association. You have my pledge that you will not find me wanting
in my determination to meet your exacting standards in accomplishing AGC's mission and in serving our industry with Skill,
Integrity & Responsibility.
By Marvin M. Black, President, the Associated General Contractors of America
CONSTRUCTOR/April 1991
5
NEWSLINE
CLOUDY SKIES AT BUSINESS IN
PARADISE CONVENTION
GENERAL
In the President's Report, Kirk Fordice outlines "A Year of
Accomplishment.'
DEPARTMENT GENERAL CONTRA
1991 President Marvin M. Black
NATED GENERAL CO
Charlton Heston told the packed room at the opening session, "We
Peter Galliford
live in an era of the common man I believe in the uncommon man."
Combinations of economies in reces-
Washington, D.C., to as far away as tran-
STRUCTOR Exposition, a variety of
sion, fears of terrorism, and trepidations
quil and beautiful Hawaii. Even in peace-
seminars, committee meetings, and gen-
about what proved to be a short-lived
ful domestic locations, trade associa-
eral sessions.
Gulf War have had a severe adverse im-
tions, hotels, airlines, tour companies,
Cost controls were in place but rarely
pact on business meetings worldwide
and restaurants experienced severe cur-
noticeable except to the most discerning
since August of 1990.
tailment of business activities as a result
eyes. One example: no expenditures on
A major construction industry meeting
of economic and safety concerns.
admission tickets or guardettes to collect
scheduled for Bombay in February that
Although the 72nd Annual Convention
them, with name badges working as an
would normally have attracted heavy par-
of the Associated General Contractors of
effective honor system. Another exam-
ticipation by contractors from Asian and
America, held in Honolulu March 14-19,
ple: because the meeting's distant loca-
Western Pacific countries plus represen-
was also affected by such events, the
tion meant that a key speaker could not
tatives from Europe, Latin America, and
basic strength of the association was
take the time to travel from the East
the United States, was cancelled. Good
reflected in an attendance of more than
Coast, a telephone hook-up was used.
hosts did not want to put any of their
3,200, packed meetings, and a dynamic,
Nationally known labor attorney Robert
guests in even remote danger or in any
innovative program. Mid-March weather
T. Thompson reported directly from
discomfort.
that would have been cheered in almost
Washington on the threat and status of
Fears of the unknown, recessionary
any location contributed to the meeting's
Striker Replacement legislation and
and other concerns, even led to cancella-
success as intermittent showers en-
responded to questions as authoritatively
tion of major business events from
couraged attendees to crowd the CON-
and fully as would be possible in a board
6
April 1991/CONSTRUCTOR
ASSOCIATION BUSINESS CONDUCTED WITH GUSTO
A
IATED
GENER
AGC Executive Vice President Hubert Beatty
President George Bush addressed the convention in a specially taped video message.
PRESIDENT GEORGE BUSH
President Bush was awarded AGC's Skill, Integrity & Responsibility (SIR) Award for
After a special breakfast event, Daughters
his leadership in freeing Kuwait.
and Sons of AGC members carried the
Parade of State Flags.
Presentation of Colors was made by the U.S.
The Kamehameha Schools Choir
The United States Navy Pacific Fleet Band
Pacific Air Forces Color Guard.
room discussion.
Agreement, and there was concurrence
phasis on construction economics was
Evidence that AGC activists were out
on a suggestion that AGC secure an ex-
reflected in the introduction of updated
in force at the Convention surfaced in yet
ecutive summary of the proposed agree-
and expanded Economic Fact Sheets for
another innovation a letter to all
ment's potential impact on the overall
each of the 50 states and an overall
members of Congress signed by Conven-
economy and the construction industry.
economic fact sheet for the United
tion attendees that indicated the number
Economic considerations were also
States. The fact sheets provide informa-
of their employees and called on each
evident in the introduction of AGC's
tion on construction's share of the
member of Congress to advance pro-
"Contractors' Underground Storage
economy and information on non-
posals that will induce economic activity
Tank Information Guide," a new publica-
residential building permits. The statis-
and to discard proposals that will inhibit
tion that explores the $90 billion con-
tics contained in the fact sheets provide
such activity.
struction market associated with retro-
the latest information as of February
In the economic arena, continued sup-
fitting, removal, or replacement of more
1991. These new AGC publications are
port of free trade was evident in discus-
than 1.5 million underground storage
buttressed by updated Infrastructure
sions of the U.S.-Mexico Free Trade
tanks. The association's continuing em-
Fact Sheets, with the objective of secur-
CONSTRUCTOR/April 1991
7
The dynamic program at the opening convention session captured the attention in the packed ballroom.
CARR
DESJARDINS
FHWA Deputy Administrator McCormick
Rep. Martin Lancaster spoke on hazardous
and Rep. Bob Carr addressed the Highway
waste cleanup at the Municipal/Utilities
Division Meeting.
Division Meeting.
America's world-renowned pianist Roger
Williams
Two of the National Committee Chairmen
1991 AGC officers (left to right): Treasurer Lawrence J. McGough, President Marvin M.
of the Year-Michael Timura, Safety and
Black, Senior Vice President Robins H. Jackson, and Vice President Byron L. Farrell.
Health Committee, and Bud Madigan, Col-
lective Bargaining Committee-are shown
above with President Fordice. Also named
overly zealous federal wetlands policies
Concerns about the progress and
were Paul King, Safety Engineers Advisory
and enforcement. It was obvious that the
management of the Superconducting
Committee, and Lou Selig Jr., American
threat to the industry resulting from ex-
Super Collider program quickly led to the
Consulting Engineers Council/AGC Com-
cesses in wetlands proposals was accen-
formation of a Special Task Force to
mittee.
tuated by current economic conditions.
meet with the Department of Energy to
ing attention for AGC concerns at the
A major Convention focus was AGC's
address those concerns.
local and state levels and with Congress,
proactive and constantly expanding safe-
Access to reconstruction markets in
the Bush Administration, and the busi-
ty programs. Faced with the threat of
Kuwait by U.S. firms prompted an
ness community.
new and unnecessary safety legislation,
urgent request for a meeting with the
One of the most emotional meetings
the AGC response was a combination of
U.S. Army Corps of Engineers on that
in Honolulu was a Wetlands Forum at
determination to explain the industry's
subject.
which a panel of representatives from the
concerns to Congress and the authoriza-
AGC building contractors addressed
federal government heard considerable
tion of more association funding for the
their interests at a crowded session with
criticism regarding ill-conceived and
further development of safety programs.
participation by a panel including an in-
8
April 1991/CONSTRUCTOR
Accepting the Chapter of the Year Award for AGC of
The Oregon-Columbia Chapter received the distinguished
Members are greeted by rep-
Washington are Pete Paup, 1990 Chapter President of
Cashman Trophy for best membership accomplishments
resentatives from Fiatallis at
the Year, Walt Smith, 1991 Chapter President, and Dick
and efforts with membership activities. The Oregon-
the complimentary breakfasts
Bristow, Chapter Manager. AGC of Washington also won
Columbia Chapter also received the award for the greatest
sponsored by Fiatallis.
the Public Relations Committee Award for the Best In-
net percentage gain in 1990.
dividual Public Relations Campaign.
Vice President Byron Farrell is accompanied
by Former Presidents Dana Huestis (left)
Senior Vice President Robins Jackson is ac-
and Vernie Lindstrom.
companied by Former Presidents Jim Supica
(left) and Dana Huestis.
Induction of AGC Officers. President Mar-
vin Black is accompanied by Former Presi-
dents Richard Pepper (left) and Richard
Hall.
Larry Isemoto, President of the
Hawaii Chapter, extended a gra-
cious welcome and warm hospital-
ity to the convention attendees.
Gerald Coffey, former POW in Vietnam,
challenged the crowd in attendance at the
Safety & Awards Breakfast.
of that meeting, the Convention unan-
imously adopted a resolution supporting
the House Public Works Committee's
budget proposal that federal investment
in the nation's highways be significantly
Treasurer Lawrence McGough is accom-
increased, to $119 billion over five years.
panied by Former Presidents Vernie Lind-
At AGC's Heavy-Industrial Division
strom (left) and Paul Emerick.
contractors' meeting, spirited discussion
Doug Judson, Corroon & Black,
took place on the military construction
extends a welcome at the Safety &
dustrial owner, a general contractor, and
moratorium with participation by Brig-
Awards Breakfast sponsored by
a quality expert on the important topic
adier General Clair Gill, U.S. Army
Corroon & Black.
of "Quality in Construction-the Com-
Corps of Engineers.
petitive Edge."
Representative Martin Lancaster (D-
AGC's commitment and resolve in op-
Representative Bob Carr (D-Mich.)
N.C.) addressed AGC's Municipal-
posing special preferences was reflected
and Federal Highway Deputy Admin-
Utilities Division contractors on the sub-
in Convention approval of:
istrator Gene McCormick addressed
ject of cleaning up hazardous waste at
further financial support of the
AGC's highway contractors. As a result
DOD facilities.
O'Donnell vs. District of Columbia case
CONSTRUCTOR/April 1991
9
AGC/MOTOROLA BUILD AMERICA AWARDS AND OTHER HONORS
Construction Quality was the dominant theme of the AGC/Motorola Build America Awards
Motorola representatives Tom Golder (left)
Program that featured a dynamic multi-media presentation by Motorola in a packed ballroom
and George Webb (right) paid special tribute
at the Sheraton Waikiki Hotel.
to President Fordice and Public Relations
Committee Chairman Richard Schmidt.
T.L. James & Co. Inc. won two Build
Winner of the New Building Category was
Winning the New Highway Category was
America Awards: Heavy Industrial Category
Hensel Phelps Construction Co. for the Col-
Shasta Constructors, Inc. for the Sacramen-
for the Sand Key, Fla. Beach Nourishment
orado Convention Center in Denver. Receiv-
to River Trail Pedestrian Bridge. Accepting
Project and Highway Restoration Category
ing the award from President Fordice and
the award for Shasta was Richard Moseman.
for the I-10 Fiber Reinforced Concrete
George Webb of Motorola is Jerry Morgen-
Overlay. Shown above are (left to right) G.
sen, CEO of Hensel Phelps.
W. James III, President Fordice, Billy
James Jr., Tommy Folk, and George Webb
(Motorola).
Winner of the Public Relations Committee
Award for Infrastructure Awareness was
AGC of California. Accepting the award
Winner of the Building Restoration Category
were Dave Hawley, Chapter President, and
was Messer/Cargile for the Museum Center
Ken Gibson, Chapter Manager.
at Cincinnati Union Terminal. Accepting
William Martel, Martel Construction Inc.,
the award are William Cargile, James Hess
accepted the award for the winning
opposing Washington, D.C.'s MBE set-
and Alfred Berndsen.
Municipal/Utilities project by Martel-the
aside programs;
Mystic Lake Dam/Flowline Replacement
the support of the Cone Corpora-
Project.
tion's challenge to the Hillsborough
County, Fla., MBE program as recom-
mended by AGC's Florida chapters;
and support of appropriate special
preference cases that appear to have a
reasonable prospect of Supreme Court
review.
Responding quickly to 1991 AGC
President Marvin Black's emphasis on
construction quality, the Convention ap-
proved the formation of a Quality in Con-
struction Committee. Responding to a
Stephen Cloutier, Metric Constructors Inc.,
call for closer relationships with owner
Charlotte, N.C., accepts the H.B. Alexander
groups, the Convention also approved
Award which is given to the general contrac-
the formation of a Private Building
Accepting the award for Best Overall Public
tor with the highest work hour exposure
Owners Committee.
Relations Campaign for Carolinas AGC are
Carl Woods, Chapter President, and Steve
without a lost work day case.
Charlton Heston captivated a standing-
Gennett, Chapter Manager.
10
April 1991/CONSTRUCTOR
LD
AGC/CONSTRUCTOR EXPO
DRAWS CROWDS
EACH DAY
Prizes galore rewarded the crowds at the CONSTRUCTOR Expo.
Kay Krusinski, Podcor Construction Co., Westchester, Ill., re-
ceived the certificate for the Jeep Wrangler from CONSTRUCTOR
staff member, Rich Bohan.
room-only crowd at a Hilton ballroom
Kuwait and establishing faith, hope, and
reporting that the American public will no
event that was also addressed by one of
confidence in the United States of
longer support special preference pro-
Europe's leading general contractors,
America."
grams, being fully committed to equal op-
Peter Galliford, of Galliford, plc,
Also named as recipients of AGC SIR
portunity.
Leicestershire, England. Mr. Galliford
Awards were Secretary of State James
Another of the dynamic programs at
discussed European construction oppor-
A. Baker III, Secretary of Defense
AGC's 72nd Annual Convention involved
tunities, joint ventures, and international.
Richard B. Cheney, General Colin L.
the National Associate Members Coun-
cooperation. He saluted AGC members
Powell, General H. Norman Schwarz-
cil. The primary thrust of that meeting
for always taking the high road and do-
kopf, National Security Adviser Brent
was discussion of the state of the con-
ing that which is right as distinct from
Scowcroft, and White House Chief of
struction industry from the perspectives
that which is expedient. His high regard
Staff John H. Sununu-for their support
of subcontractor and other associate
for the United States was also evident
and implementation of President Bush's
members. That panel discussion was
in his acknowledgement of U.S. leader-
successful efforts to free Kuwait.
moderated by 1990 AGC President Kirk
ship in Kuwait.
In his report to the Convention, AGC
Fordice. The panelists were John B.
The AGC Convention also appreciated
Executive Vice President Hubert Beatty
Dunn, Dun-Par Engineered Form Co.,
a specially taped video message from
said that during the past year, AGC suf-
Raytown, Mo.; Reginald L. Parker,
President George Bush, who expressed
fered no losses with the Legislative
Peoples Heritage Savings Bank, Port-
his appreciation to individual members
Branch benefitted from increased ac-
land, Maine; and William Ernstrom, Ern-
and the association's leadership for sup-
cess to the Executive Branch secured
strom & Estes, Rochester, N.Y.
port of and trust in his administration.
numerous new victories at the state and
At that same meeting, former Reagan
President Bush was awarded AGC's
local levels as the result of its Judicial
Administration official and now political
Skill, Integrity & Responsibility (SIR)
Branch victory in the J.A. Croson
consultant Haley Barbour, of Barbour &
Award "for his courage, steadfastness,
case and said that the industry is in-
DeCell, provided insight into the political
and magnificent leadership in freeing
creasingly benefitting from Fourth Estate
process in its entirety.
CONSTRUCTOR/April 1991
11
Announcing
Four Cat® D-Series
CAT
2150
CAT
Excavators
CAT
231D & 231D LC: They're up
to 38% more powerful than
215D LC: Every key spec is
their predecessors, the 229,
improved, for a balanced step up
229 Custom 180 and 229 LC
in performance. In measured
Custom 180. Results: faster
tests, it outperformed the 215C LC
8% in basement excavation and
loading and shorter cycles that
outproduce these models by 10%
25% in loading trucks.
in trenching and up to 23% in
truck loading. The 231D LC has
the longest tracks, highest travel
speed and drawbar pull, and the
best lift capacity in its size class.
231D / 225D / 219D / 215D LC
Join the Caterpillar® Line!
Caterpillar's D-Series Excavators have
been designed to give you a whole lot
225D & 225D LC:
These models improve on the
more. More than the models they
outstanding tradition of the 225B
replace. More than their competitors.
by bringing 4% more weight,
Because they've been improved in all the
14% more engine power, plus
higher bucket and stick forces.
ways that translate into higher production,
So you can expect up to 17%
longer life and faster payback to you.
more production in work like
truck loading, deep trenching
You see just the highlights here. Your Cat
and basement excavation.
Dealer can detail the rest: stronger booms,
sticks, mainframes and carbodies.
Reliable Cat diesel Engines and powerful,
responsive variable-flow hydraulics.
XT Hose. Fuel-saving Automatic Engine
Speed Control. And a whole lot more.
So if you've been looking to get more
from an excavator in this size range.
219D & 219D LC: With
2190 LG
CAT
check out the Caterpillar D Series.
increased weight, horsepower
and hydraulic power, they easily
More is what they're all about.
swing an 8% longer boom and
two new stick options through a
digging envelope with 5% more
ground level reach and 29%
more dump height.
CATERPILLAR®
Operating
Nominal Bucket
Power
Weight
Capacity
FWHP/kW
lb/kg
yd³/liters
231D LC
200/149
78,100/35 470
1.75/1350
231D
77,600/35 230
225D LC
165/123
58,680/26 610
1.50/1100
225D
56,860/25 780
219D LC
140/104.4
49,750/22 560
1.25/900
219D
47,940/21 740
215D LC
125/93
43,930/19 945
1.00/765
© 1990 Caterpillar
Reader Service No. 5
F
E
X
B
L
E
F
U
N
D
N
G
Is YOUR
A Southeastern construction company was expanding
rapidly. They won new contracts, staffed up and purchased
FINANCING
the necessary equipment.
And then the rain set in.
WATERPROOF?
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flow to support debt service became cramped. And bonding capacity suffered when it was needed most.
That's when The CIT Group/Industrial Financing introduced our Revolving Line of Credit Program,
one of our many Flexible Funding options. This relieved their cash flow problem. Increased bonding capa-
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GROUP
A company of
Reader Service No. 6
Dai-Ichi Kangyo Bank and
©
1990 The CIT Group, Inc.
Manufacturers Hanover
AGC
DIVISION BRIEFS
BUILDING DIVISION
Force reviewed activities to date and
HIGHWAY DIVISION
Convention activities. The Building
recommended that the task force be-
Highway legislation tops national agenda.
Codes and Permits Committee discussed
come a committee, which was approved
In a speech announcing the end of the
establishing liaison meetings with the
at the Building Division meeting.
Persian Gulf War, President Bush told
three model code organizations and the
Congress and the nation that the highway
impact of the federal metrication efforts,
HEAVY-INDUSTRIAL DIVISION
bill is a top legislative priority on the
the American with Disabilities Act, and
DoD's moratorium on military construc-
domestic agenda. The President said,
other public policy-oriented code
tion may end April 16. DoD's moratorium
"Let's begin with two initiatives we
changes.
on military construction, first announced
should be able to agree on quickly:
The Housing Development Committee
in January 1990, has been extended to
transportation and crime. And then let's
recommended that AGC develop liaison
April 15, 1991. This past February, Colin
build on success with those and enact the
activities with the HUD Office of Multi-
McMillan, assistant secretary of defense
rest of our agenda. If our forces could
Family Housing Programs and reviewed
for production and logistics, testified
win the ground war in 100 hours, then
the status of the Cranston-Gonzalez
before the House Subcommittee on
surely the Congress can pass this legisla-
National Affordable Housing Act and tax
Military Construction. In his written
tion in 100 days. Let that be a promise
credit and voucher systems.
testimony, McMillan indicated that DoD
that we make tonight to the American
The Federal Building Procedures
expects to lift the moratorium on April
people." The authority to spend federal-
Committee discussed formation of a
16. However, in oral comments, Mc-
aid highway funds expires at the end of
Private Building Owners Committee and
Millan acknowledged that the final deci-
September.
a National Aeronautics and Space Ad-
sion rests with Secretary of Defense
Governors urge increased highway fund-
ministration Task Force and reviewed
Richard Cheney. AGC will submit a
ing. The National Governors' Associa-
the practice of escrowing bid documents.
statement to the House Subcommittee
tion (NGA) is asking governors to sign
The formation of a Private Building
on Military Construction in support of lift-
a joint letter urging the congressional
Owners Committee was approved at the
ing the moratorium.
budget and appropriations committees to
Building Division meeting.
AGC pushes for legislative solution to com-
raise the highway obligation ceiling from
The Project Delivery Systems Com-
petitive negotiation in the 102nd Congress.
the current level of $14.5 billion to $16.5
mittee reviewed progress on revisions
AGC has met with congressional staff to
billion. Governor Wallace Wilkinson of
to AGC's "The Use of CPM in Con-
discuss its concerns about competitive
Kentucky, chairman of NGA's Commit-
struction" manual and the "Design Build
negotiation. Rep. Richard Ray (D-Ga.)
tee on Transportation, Commerce, and
Guidelines" pamphlets. The committee
and Rep. Jon Kyl (R-Ariz.) have agreed
Communications, wrote to all governors
also discussed the actions of the CM,
to work with AGC legislatively to ad-
to encourage their support. AGC worked
PM, D/B, Lump Sum, and Privatization
dress the association's concerns.
closely with NGA last year in support of
subcommittees, which included AGC
AGC and Corps of Engineers agree to con-
the record $14.5 billion funding level.
review of GSA's new CM Guide and Ad-
duct joint workshop on alternative dispute
Congressional Budget Office testifies on
ministrative Orders, the VA's CM Con-
resolution. On February 25, Heavy-
Highway Trust Fund Account. James L.
tract and an upcoming meeting of the
Industrial Bulletin #91-2 formally an-
Blum, assistant director of the Budget
GSA Design Build Focus Group.
nounced the AGC-Corps of Engineers
Analysis Division of the Congressional
The Subcontractor Relations Commit-
joint workshop on alternative dispute
Budget Office (CBO), told the Senate
tee made final recommendations to the
resolution. Two two-day courses will be
Environment and Public Works Commit-
AGC/ASA/ASC jointly produced "Proj-
held April 30-May 3 in Memphis, Tenn.
tee that at the beginning of this fiscal year
ect Cash Flow" guidelines and reviewed
Applications are now being accepted on
the unexpended balance of the Highway
revisions to AGC documents #603
a first-come, first-served basis. Each
Trust Fund (including the Mass Transit
("Short Form Subcontract") and #610
session will include 15 contractors and 15
Account) totaled $16.8 billion. According
("Subcontractors Application for
Corps personnel.
to CBO, the unexpended balance of the
Payment.")
highway account totaled $9.6 billion. By
The Quality in Construction Task
FY 1995, under the administration's
14
April 1991/CONSTRUCTOR
proposal, Blum told the committee that
the combined trust fund unexpended
balance would reach $27.3 billion.
1990 AASHTO-AGC-ARTBA joint policy
statements published. The 1990 policy
statements of the joint committee have
been published and are available from
AGC's Highway Division. The joint
statements include: The Open Com-
petitive Bidding System, Developing
Necessary Transportation Professionals,
Alternative Dispute Resolution, Buy
Col. Charles Cowan, U.S. Army Corps of Engineers, at the Partnering Forum in
America-Product Tracing Require-
Honolulu.
ments, and The Highway Program-Post
1991.
AGC PROMOTES
PARTNERING AT CONVENTION
MUNICIPAL-UTILITIES DIVISION
In AGC's continuing efforts to promote the "partnering" concept, the associa-
AGC seeks to meet with EPA on explosives
tion held a forum entitled "Partnering: The Team-Work Approach to Successful
rule. AGC is part of a coalition that is
Construction Projects" at AGC's 72nd annual convention in Honolulu, Hawaii.
seeking a meeting with the Environmen-
Participants in the forum included Col. Charles Cowan, District Engineer and
tal Protection Agency (EPA) to discuss
Commander of the Portland District, U.S. Army Corps of Engineers, Portland,
an EPA proposal to impose new federal
Oregon; Richard Lewis, Granite Construction Co., Watsonville, California; and
regulations on the use of commercial ex-
J. Doug Pruitt, Sundt Corp. Phoenix, Arizona.
plosives and flammable products. The
Col. Cowan discussed the reasons why a public owner supports the partner-
EPA action would place explosives on its
ing concepts; Richard Lewis discussed the advantages of such a program for con-
list of "Extremely Hazardous Sub-
tractors working in federal public works projects; and Doug Pruitt discussed the
stances," thus subjecting these products
benefits in promoting such a program for contractors working in the private sector.
to regulation under Title III of the Super-
AGC President Marvin Black has placed the issue of partnering at the top of
fund Amendments and Reauthorization
his agenda and has established a goal of formulating a Model Partnering Pro-
Act of 1986. If explosives are included
gram in the coming year. Because of the interest in this issue and the packed
on this list, individuals who are planning
audience at the forum, CONSTRUCTOR intends to reprint a transcript of the
to use explosives in quantities of 500 lbs.
Partnering Forum in an upcoming issue.
or more would be subject to significant
new recordkeeping, reporting, and noti-
to abandon this new regulation; however,
excavation, thus avoiding the potential of
fication requirements. These require-
the agency appears to be planning to
its being severed. The standard recom-
ments may include obtaining approval
move forward. AGC has teamed up with
mends participation in one-call systems,
from local or state emergency planning
a variety of groups in attempting to meet
engineer drawings, as-built plans, warn-
committees before explosives could be
to dissuade EPA from taking this action.
ing markers, and other similar practices.
brought on site.
Fiber optic cable standard submitted for
The draft standard was submitted for
AGC submitted comments to EPA on
industry comment. AGC has been work-
general industry comment and final minor
its proposed rule pointing out that ex-
ing with the Electronics Industries As-
changes were adopted. The standard will
plosives are already subject to federal,
sociation (EIA) on a "Standard for the
now be submitted to the American Na-
state, and local regulations. AGC also
Protection and Location of Below Ground
tional Standards Institute (ANSI) for of-
pointed out the unreasonable burdens
Fiber Optic Cable Plant.' This standard
ficial adoption. AGC will be seeking to
that would be created by these new
recommends practices to owners SO that
have the standard adopted in the building
federal regulations. AGC called on EPA
fiber optic cable can be located prior to
codes of all 50 states.
CONSTRUCTOR/April 1991
15
REBUILDING KUWAIT
K
begin the process of restoring vital ser-
Kuwaiti government officials on restora-
vices. This effort includes preparation of
tion planning and priorities.
uwaiti government of-
repair cost estimates, procurement of
The Corps is providing contracting and
ficials and the U.S. Army Corps of
necessary equipment, supplies, and ma-
management services for repair and
Engineers have begun implementing an
terials, and ongoing consultation with
restoration work as well as other design
extensive rebuilding program to repair
and construction services. These ser-
the ravages of the Iraqi occupation of
vices include restoration of water and
RECONSTRUCTION CONTACTS
Kuwait and the Persian Gulf War.
power and repair of government build-
Corps of Engineers
The scope of the program is not known
ings, roads, sanitation facilities, ports,
Pamela Friestad
at this time, as the extent of the damage
and airports. The entire program is be-
Contract Specialist
suffered by Kuwait and the magnitude of
Kuwaiti Emergency Recovery Office
the consequent reconstruction needs are
U.S. Army Corps of Engineers
KUWAIT RECONSTRUCTION
still not fully determined. It seems like-
Middle East/Africa Projects Office
INFORMATION
ly, however, that reconstruction will take
P.O. Box 2250
The primary contact points at this
several years, with costs running into the
Winchester, Virginia 22601-1450
billions of dollars. The Corps of Engin-
Phone: (703) 665-3683
time for U.S. contractors seeking
Other Phone Numbers
work in Kuwait are the U.S. Army
eers has signed a $45 million agreement
(703) 665-3692
Corps of Engineers' Kuwaiti Emer-
with the government of Kuwait to pro-
(703) 665-3667
gency Recovery Office in Winchester,
vide support services during a 90 to 120
(703) 665-3674
Va., and the government of Kuwait's
day "emergency period" following the
Fax: (703) 665-3621
Emergency Recovery Plan office in
expulsion of Iraqi forces and the cessa-
(703) 665-3626
Washington, D.C. A listing of ad-
tion of hostilities. The Corps, working
Government of Kuwait
dresses and phone numbers for these
closely with Kuwaiti officials, is seeking
Dr. Abdul Hadi Al-Awadi
and other contact points follows.
to get vital infrastructure facilities back
Project Director
Due to the tremendous demand for
in operation as soon as possible. The
Kuwait Emergency Recovery Plan
information on reconstruction proj-
Kuwaiti Emergency Recovery Office at
Follow-up Center
ects, it is often difficult to reach the
the Middle East/Africa Projects Office in
1510 H Street, N.W.
Corps and the Kuwaiti reconstruction
Winchester, Va., is managing the Corps
Washington, D.C. 20005
program in Kuwait (see following side-
Phone: (202) 508-0250
office by phone. It is recommended,
bar). The Corps will provide services to
Fax: (202) 508-0272
therefore, that U.S. firms mail a
the following Kuwaiti government
Oil Sector
description of the services and prod-
Mr. Hani Hussein
ucts they provide to the appropriate
agencies:
Ministry of Public Works
Khalid Al-Fulail
address.
Abdultourif Al-Toureh
The U.S. government has also
Ministry of Electricity and Water
Kuwait Petroleum International
opened a Gulf Reconstruction Center
Ministry of Defense
80 New Bond Street
at the Department of Commerce in
National Guard
London, England
Washington, D.C. to assist American
Col. Ralph Locurcio heads the Kuwaiti
Tel: 44-71-491-4000
companies in pursuing opportunities
Emergency Recovery Office (KERO).
Fax: 44-71-493-7996
in Kuwait. Phone numbers for this
Col. Locurcio commanded the Corps'
U.S. Foreign Commercial Service
center are (202) 377-5767 and (202)
Savannah District prior to his selection
Saudi Arabia (Riyadh):
377-5737.
for this assignment. KERO has recruited
Senior Commercial
Individuals seeking work in Kuwait
volunteers from throughout the Corps of
Officer Dirck Teller
can call the U.S. Department of Labor
Engineers to work in Kuwait. Corps per-
Tel: (966) (1) 488-3800
at 1-800-927-5690.
sonnel selected for this assignment
488-3237
deployed to the Middle East in early
Saudi Arabia (Dhahran):
March.
Commercial Officer
ing paid for by the Kuwaiti government.
A small advance party entered Kuwait
Carmine D'Aloisio
The extent of the Corps' involvement
almost immediately after the fighting
Tel: (966) (3) 891-3200
after the initial emergency period has not
stopped to establish KERO head-
Fax: 891-8332
yet been clearly defined. The Corps has,
quarters. Damage assistance groups and
Office of International Major Projects Commerce
however, reportedly received an addi-
damage assessment teams are being
Department
tional $55 million from the government
brought in to determine the extent of
Buzz Piggott
of Kuwait for the reconstruction
damage to infrastructure facilities and
Phone: (202) 377-3352
program.
16
April 1991/CONSTRUCTOR
"
We know that quality service is the difference between being good
and being the best. That is why, for 60 years and three generations,
we have relied on F.W. Dodge to provide us with timely, accurate and
quality informational services about the construction industry. Some
traditions never change."
W.K. "Ken" Upchurch, Jr., W.K. Upchurch Construction Co.
Why do thousands of construction firms like W.K. Upchurch
Tell us the types of leads you need. Your local Dodge represen-
rely on Dodge year after year? Because Dodge's complete,
tative will deliver job leads tailored to your business. So you
accurate and timely project information has helped them build
can see for yourself.
their businesses. For 100 years. Through good times and bad.
Through expansions, recessions, even a depression. Through
construction industry ups and downs. Through thick and thin.
F.W. Dodge/McGraw-Hill, Marketing Dept.-Suite 1900
1221 Avenue of the Americas, New York, NY 10020
While 1991 may seem to be one of the "thin" years, there's still
Yes! Rush Me Job Leads!
plenty of new business to be found-and F.W. Dodge's 1,300
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reporters and correspondents know where to find it!
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Dodge provides you with customized, daily project leads. By
Name
Title
mail or via your PC. Complete plans and specs plus addenda.
Company
And monthly summaries of current and
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projected construction activity to keep
YEARS
you in the know-especially critical in
City/State/Zip
SERVICE
times like these.
Phone
Call 1-800-325-2030 today or mail the
Mail or Fax Coupon or Call Toll-Free, 1-800-325-2030
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Fax: 212-512-3178
coupon.
HELPING AMERICA BUILD
Reader Service No. 7
Dodge Reports
Dodge Bulletins
Dodge DataLine
Dodge/SCAN
Dodge Local Construction Potentials
<<<<<<<<<<<<<<<<<<<<<<<<<
WASHINGTON
COVER STORY
'COOPERATION
MUST REPLACE
CONFLICT"
AGC PRESIDENT MARVIN BLACK
LEADS THE INDUSTRY
BACK TO REASON
M
money," says AGC's new president,
THE EARLY YEARS
"but his sons (six, of whom Marvin was
arvin Black doesn't
the third) did inherit his reputation. And
Marvin grew up on construction sites,
look like your typical revolutionary. The
that is something you couldn't buy for all
working summers for the company as a
six-foot-four Georgian is a gentleman in
the money in the world."
laborer and carpenter's helper. At the
the Southern tradition: friendly and soft-
Marvin Black, and those AGC
outbreak of World War II, he joined the
spoken, yet firm in his convictions. While
members who know him best, believe
Navy as an aviation cadet. Upon gradua-
he knows when the line must be drawn,
that reputation for integrity may be his
tion from the Naval Aviation Training
he's the kind of man who would rather
most potent asset in building trust and
Command in Corpus Christi, Tex., he
reach accommodation profitable to both
cooperation among industry groups.
was designated as a naval aviator and
sides. But in light of the state of the in-
Robert (Bob) Strickland, former manager
entered the U.S. Marine Corps. His first
dustry, his goal as AGC president is
of the Georgia Branch, AGC, had the
duty station was El Centro, California,
revolutionary: to return control of the
unique opportunity of observing both
where Second Lieutenant Black and
construction process to contractors, who
father and son as presidents of the
another officer tried to crash a U.S.O.
can then re-focus their attention on
chapter. (Joe was president in 1954,
dance for enlisted men. They were
business instead of wasting time and
Marvin in 1974.) "You have to under-
turned back at the door by one Joeanne
money on litigation, disputes, and
stand that Marvin, his father, and their
Rothwell, the daughter of a local contrac-
divisiveness.
whole view of life go back to the time
tor who built water treatment plants.
"The current litigation explosion
when your word was your bond and work
That very night she told her mother, "I
threatens to destroy our industry," he
was done on a handshake," says
just met the man I'm going to marry."
warns. "It's eroding the thin profit
Strickland. "Of course, you can't do that
Five weeks later, on July 9, 1944,
margins at which we already operate.
anymore. But you get the feeling that's
Joeanne and her Marine Aviator tied the
And it's gotten to the point where even
how he'd like to do work. Even the
knot. They've been partners ever since,
if you win in court, it costs you SO much
physical resemblance is there. Marvin's
creating a successful business and fami-
that nobody really wins. The time for a
a big man and when you watch him walk
ly. Their two sons (Michael and Steve)
return to reason is now." Construction
across a room, from the back you'd
and two daughters (Laurel and Jennifer)
contractors can retake control of their
swear it was his father."
are all happily married.
own destiny only by increasing coopera-
Joe (J.J.) Black came from White Coun-
Second Lieutenant Black, 20, soon
tion and trust-both among the individual
ty in the mountains of north Georgia, an
found himself in the in the cockpit of a
parties on the building team and among
agricultural region where farmers tradi-
Corsair F4U, the most powerful fighter-
the industry groups that represent them
tionally built their own barns and houses.
bomber of its day. Combat forced the
and develop the contract documents
Work for carpenters was scarce in the
young man to grow up in a hurry. Based
used by all members of the construction
1920s, SO J.J. Black, like many others
in the Philippines, he flew bombing and
team.
during that period, took his young wife
close air support missions. Marvin flew
Leading a large-scale effort of this
to Atlanta to seek his fortune. Working
more than 100 sorties and was awarded
kind, one that extends across all sectors
first for a local general contractor, then
the Distinguished Flying Cross with two
of the construction industry, is something
on his own, J.J. did private residences
stars. He was all of 22.
Marvin Black is, by temperament and
and small commercial projects. He soon
After the war, Marvin joined his
reputation, uniquely qualified to do.
developed a reputation for competence
father's firm as an estimator and project
"My father didn't leave me a lot of
and fair dealing.
manager, building many of Atlanta's
(continued)
CONSTRUCTOR/April 1991
19
(Left) East End Addition to Sanford
Stadium for the University of Georgia.
(Below left) Marvin M. Black Co. has
developed a profitable specialty market in
roller coaster construction, such as this one
at Circus World in Orlando, Fla.
schools, churches, banks, and service
stations. When J.J. Black retired in 1964,
Marvin struck out on his own. Starting
with one office worker and Joeanne as
company secretary, Marvin routinely
worked 20-hour days, managing projects
during the day and estimating jobs at
night.
MAKING A NAME OF HIS OWN
Throughout the 1960s, Marvin M.
Black Co. built for a who's who of Atlanta
organizations, including the Citizens &
Southern National Bank, Gulf Oil Corp.,
Tenneco, the Methodist church, and the
boards of education in three local coun-
ties. As its client base grew, SO did the
company's reputation for repeat
business, technical expertise, and in-
novation. Company files are thick with
letters commending its staff for going the
extra mile.
The 19-story Bennington Towers, for
example, a luxury condominium com-
pleted in 1984, was one of the tallest
structures in the Southeast built of load-
bearing masonry supported by a post-
tensioned, floating-mat concrete slab.
This technique enabled the company to
avoid deep foundations and the cost of
some 180 tons of reinforcing steel.
Marvin M. Black Co. constructed the
East End Addition to Sanford Stadium for
the University of Georgia at a savings of
$300,000. Instead of using sheet piling
to stabilize a bank near a railroad track,
Black drilled concrete caissons and tied
them into the bank.
As Marvin devotes himself to AGC
business in the year ahead, he knows the
company that bears his name is being
managed by experienced hands. Michael,
46, is company president and chief
operating officer. A leader in AGC's
Georgia Branch, he was named commit-
tee chairman of the year in 1989. Mike
holds a B.B.A. from the University of
Georgia and an M.B.A. from Georgia
State University. Steve, 43, joined the
Marines out of high school and served in
Vietnam. As vice president, he heads up
the company's computerized estimating
operations.
MARVIN M. BLACK
Born: Atlanta, Ga. 1924
Education: Tech High School, 1942;
BBA, management, Georgia State
University, 1958
QUALITY, OPPORTUNITY, OUTREACH
"The past quarter century has been
Military Service: Marine Corps Aviator.
a time of great abundance," says AGC's
Retired with rank of Colonel from
new president. "Now, we are entering
Marine Corps Reserve, 1984. He
is a past president of the Atlanta
a new era. Profit margins are tighter than
Chapter of the Marine Corps
ever. Owners are more sophisticated and
Reserve Officers Association.
more demanding than ever. Litigation is
rampant, taking a bigger bite out of con-
Other Professional Activities: Former chair-
struction contractors' bottom line profits
man of the board of First Security
than ever before. I make no apology
National Bank, Norcross; member,
U.S. Postal Service Advisory Com-
when I tell you that I want to be making
mittee, Real Estate and Construc-
a larger profit on my next job and future
tion, 1987-1989; member, Ameri-
work than any lawyer.
can Institute of Constructors;
"But we miss the point in simply blam-
member, Consulting Contractors'
ing lawyers. No lawyer ever worked for
Council of America. President of
a construction company that wasn't
the Georgia Branch AGC, 1974.
asked to. The onus rests with the con-
008
tractor to reduce litigation."
Asked to bottom line his objectives,
Marvin Black sums them up in three
words: "quality, opportunity, outreach."
Quality. Quality means improved con-
tract documents, ones that are more
its retrofitting of industrial facilities, and
sometimes on opposite sides of the fence
equitable for all parties. The more
the expanded budgets of the General
from organized labor, we will be meeting
equitable the documents, the less
Services Administration and Veterans'
with labor leaders during 1991 to discuss
disagreement; the less disagreement,
Administration.
issues of mutual interest."
the greater profit for all parties.
In these times of fiscal austerity, op-
Partnering. "I'm especially enthusiastic
Quality means improving relations with
portunity means access to the Bush Ad-
about the concept of partnering," says
all members of the building team to
ministration and federal agencies. It
Marvin Black, "something the Corps of
reduce problems. Owners, Marvin Black
means expending maximum effort on
Engineers has gotten behind, and that
will tell you, are vastly more
Capitol Hill to defeat quota bills, stop the
has attracted the interest of the
sophisticated than they were a few short
use of gas taxes for deficit reduction,
Veterans' Administration, the General
years ago. He tells of attending a
stop misguided and unworkable safety
Services Administration, and other
Business Roundtable meeting where, it
legislation, stop mandatory, costly fami-
federal agencies. Basically, partnering
was reported, an owner encountered one
ly and medical leave legislation, and stop
means building a relationship of trust
contractor with an insurance experience
punitive legislation vastly increasing
among the owner, architect, the general
modifier rate of 1.4, projecting a $2.2
penalties for OSHA violations.
contractor, and subcontractors. This can
million workers' compensation premium
Outreach. "As we enter a new age of
be done by an informal gathering of the
on the owner's project. Another contrac-
construction, we must transform our
building team at a site away from distrac-
tor had an experience modifier of .6 and
relationships with the whole range of
tions. The twin goal is to establish mutual
a premium of $900,000 on the same
private sector groups, whether with
trust and plan for the project. Then,
project. Now who, Marvin Black asks,
owners, architects, and engineers, or
when a problem arises, you reach for the
do you think got the job?
subcontractors and specialty contrac-
phone to call your owner/partner instead
By the same token, owners will soon
tors," says Marvin Black. "Too often in
of reaching for a lawyer. Once you're in
have the same acumen with regard to
the past, we have dissipated our energies
the courtroom, you've already lost."
litigation. Before signing a contract,
in adversarial relationships. To thrive in
President Black has already announced
they'll likely ask to see your company's
this new climate, cooperation must
his plans to create a model partnering
litigation history. Those who solve their
replace conflict. To that end, AGC, AIA,
program.
problems outside the courtroom will have
and other groups worked successfully
Marvin Black has been a quiet activist
the edge.
last year to have the National Associa-
in AGC for more than 20 years. During
Opportunity. As traditional markets
tion of Attorneys General withdraw their
that time he's watched the association's
become slimmer, President Black be-
model contract documents. We also
effectiveness grow. "I don't know of any
lieves AGC must "lead the way in
worked with the American Consulting
organization in any field that gets more
discovering and engaging in new mar-
Engineers Council to produce 'An Own-
done with less overhead than AGC.
kets, new opportunities." That means
er's Guide to Saving Money by Risk
Everywhere I've traveled, the quality of
capitalizing on the $5 billion increase in
Allocation.' AGC is increasing its involve-
our people and programs I've come in
federally funded construction that AGC
ment with the Business Roundtable,
personal contact with has been superb."
lobbied hard to achieve. It means max-
especially in the area of safety. Through
Under the leadership of Marvin Black,
imizing markets opened by legislation
the American Construction Industry
AGC effectiveness and strength will in-
such as the Americans with Disabilities
Forum, we are building relationships with
crease in the year ahead. You have his
Act, the three-year $5.1 billion Super-
other hard hat groups in the industry.
word on it.
fund extension, the Clean Air Act with
And, despite the fact that we are
-By William Heavey, editor
CONSTRUCTOR/April 1991
21
Precious Medals
1972
Thomas S. Byrne, Inc.
Dravo Corporation
Yeargin Construction Co.
1973
1974
Bannes-Shaughnessy, Inc.
M.M. Sundt Construction Co.
Kennaday Paving Co.
Charles H. Shook, Inc.
Umpqua Division of Bohemia Inc.
S.J. Groves & Sons Co.
1975
1976
1977
Barton-Malow Company
Dravo Corporation
Walsh Construction Co.
Hunter-Saucerman Construction, Inc.
Flagler Co.
W.L. Hailey and Co., Inc.
Harold MacQuinn, Inc.
R.E. Lee & Son, Inc.
Foster and Creighton Co.
1978
1979
1980
1981
S.J. Groves and Sons
Mardian Construction Co.
Harvey Construction Co.
Turner Construction Co.
H.B. Alexander and Son, Inc.
Dravo Engineers and Constructors
Williams & Burrows, Inc.
Shook, Inc.
Gilbane / Jackson
John Luther and Sons Co.
Guy F. Atkinson Co.
W.J. Barney
Construction Co.
1982
1983
1984
1985
J.A. Jones Construction
Cianbro Corporation
Centric Corporation
Austin Commercial
Foster & Cooper, Inc.
Massman Construction
Pepper Construction
HCB Contractors
AI Cohen Construction Co.
Turner Construction Co.
Sundt Construction
Hensel Phelps Construction
1986
1987
1988
1989
1990
George Hyman Construction Co.
HCB Contractors
Flatiron Structures Inc.
Riedel International/Tokola
Hensel Phelps Construction Co.
Sundt Corporation
Turner Construction Co.
Gilbane / Smoot / Dick
Pensacola Tyger
Messer/Cargile Association
Kiewit Pacific of Vancouver
Beacon-O'Connel, Inc./
Turner Construction/
Wescott Construction
Martel Construction Inc.
Global Consultants
Perini Corporation
Beacon Construction
Intermountain Construction
Shasta Constructors, Inc.
T.L. James & Co. Inc.-Ruston, LA
T.L. James & Co. Inc.-St. Rose, LA
ASSOCIATED
GENERAL
CONTRACTORS
The Build America Awards honor the "Best of the Best" -- as judged by your peers. And when it
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SKILL
RESPONSIBILITY
INTEGRITY
achievements? Call 202 393-2040 for information.
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Motorola, 1991.
AA
and Motorola are trademarks of Motorola, Inc.
AA
MOTOROLA
T
INTERNATIONAL
OF
THE
UNITED
THE
OF
PRESIDENT'S REPORT
AGC SERVING PUBLIC INTEREST
of our history is that AGC has a
used to adorn self interest. In-
One year ago, in San Fran-
remarkable record of having been
stead, as we do on construction
cisco, I expressed appreciation
on the correct side of the issues.
sites where direct and sequential
for the opportunity to serve as
We have not always prevailed in
actions are essential to ensure
President of the Associated
the short term but, over the
that what we build stays in place,
General Contractors of America
longer term, we prevail because
the actions we take as people
and pledged that all of my
that which we advocate best
freely associated with each other
endeavors would be in accor-
serves the public interest." I have
are equally direct and sequential.
dance with the purposes for
not the slightest doubt that as
Construction has no tolerance for
which this organization was
long as the Associated General
either inexactitude, falsehood or
established in 1918. Since then,
Contractors of America exists,
illusions.
in every discussion in which I
every action it contemplates or
participated, in every action con-
takes will be measured to that
One year ago, we faced the
templated and in every decision
threat of what became known as
exacting standard of serving the
made, that pledge has been
public interest. My certitude on
the Kennedy/Hawkins Quota Bill.
honored. It was not difficult
this has been buttressed during
We faced it squarely. President
because all that had to be done
the past year by participation in
Bush faced it squarely. Congress
was to follow the well-lighted
national and chapter meetings
upheld his veto. We face that
path of the good people to whom
throughout this great nation. At
challenge again in the 102nd
association members have en-
such meetings, it has always
Congress. We will face it square-
trusted the AGC Presidency since
been rewarding to observe direct,
ly, and I believe that we will
our association was established
open and uncomplicated com-
prevail again because its pro-
in 1918.
munication where construction
ponents will not be able to
In San Francisco, I said, "That
industry views are not cloaked in
demonstrate that quota-inducing
which jumps out from the pages
the fancy plumage sometimes
legislation is in the public in-
terest.
SKILL
INTEGRITY
Annual Report
Associated General Contractors of America
March 1991
CONSTRUCTOR/April 1991
23
AGC ANNUAL REPORT-1991
A YEAR OF ACCOMPLISHMENT
need a prepared script to look
LOOKING AHEAD
One of my earliest actions as
out and make eye contact with
On September 5, I wrote to
AGC President was to personally
the good people in this room who
President Bush and all Members
write to each general contractor
have risked their businesses to
of Congress bringing to their at-
member. The essence of my let-
the care of others knowing full
tention that the United States
ters was to thank members for
well that their sacrifices, their
was already well on the way to,
their financial support of our
time, their knowledge and their
at a minimum, a deep recession
association, and in some in-
ideals may be too little ap-
that was being substantially trig-
stances, to request that they
preciated by all in the industry
gered by declining construction
review whether those hard-earned
who become the beneficiaries of
markets. Components of that
dues payments are in accordance
your efforts. So, while I thank
decline included:
with the Bylaws determined by
you, it is to that wider industry
The impact of economic uncer-
our governing body, AGC's Board
audience that I now appeal.
tainty on industrial construc-
of Directors.
When you read the published
tion markets and at a time
reports of this meeting and of
when modernization of Amer-
While I appreciate the widely
AGC's activities during the past
ica's industrial facilities is vital
held philosophy that many of us
year, imagine that you were
to our international com-
are strong AGC supporters
directly involved in the basic
petitiveness;
because we want to put some-
work that resulted in this
The Military Construction
thing back into the industry in
association's accomplishments.
moratorium originally imposed
which we earn our livelihoods, I
on January 24, 1990, in place
have a strong conviction that
Assume, and price it, that you
on September 5 and still in
every trade group worthy of the
worked directly in the preparation
place;
name must, increasingly, be able
of AGC's safety videos and pub-
The Savings and Loan disaster
to demonstrate its worth by
lications, contract documents
and the Banking crisis; and
measurable accomplishments.
and manuals, State or Congres-
The continuing, in effect, im-
sional testimony, training ma-
That belief governed my action
poundment of Highway, Airport
terials, meetings with government
last month in again commun-
and Waterways trust funds.
agencies, meetings with orga-
icating to all of our general con-
nized labor, with Business
When Congress adjourned on
tractor members the measurable
Roundtable representatives,
October 28, it had increased in-
accomplishments and services
building codes officials, Congres-
vestment in the nation's public
that our association provides.
sional contacts, or in the de-
works infrastructure by more
That report concisely docu-
velopment of a model "Partner-
than $5 billion over the previous
mented more than 60 AGC
ing" program, the Rebuild
year. That small progress is a pit-
accomplishments, programs or
America Coalition or the
tance when related to needs.
short-term objectives that are
summarized further in our Ex-
multiplicity of events that take
Although the economic reali-
AGC activists away from their
ecutive Vice President's Report.
ties identified for President Bush
families and their businesses to
and Congress by AGC in early
I reference those accom-
advance our industry.
September are now more widely
plishments here to make the fur-
understood, I am confident that
ther point that they should not be
We all know that a contractor
our country has the means if we
measured alone by dues
who does not get compensation
will acquire the will to return to
payments. It would take a highly
for his construction products or
sustained growth in our
sophisticated accounting system
services will not get credit for
economy.
to measure and reflect the value
altruism, or any other credit when
of contributions to our associa-
such altruism would remove that
As has always been true, con-
tion by the members who serve
firm from the marketplace. To the
struction is the primary engine of
on chapter and AGC of America
Chapter leaders in this audience
economic growth. It is incumbent
committees or special task
who doubt if all members have a
on the construction industry, and
forces. You people in this au-
full appreciation for all the
all industries dependent on con-
dience know whereof I speak.
association does at every level to
struction's good health for their
You know the value of the time
advance the industry, please do
own well being, to intensify our
that you have so generously
not be reticent about putting the
messages to elected officials
given not to advance yourself,
facts squarely in front of those
that huge increases in invest-
but to advance our association
whose interests are advanced by
ment in our stock of public works
and elevate our industry. I do not
those of us who are activists.
infrastructure are essential to:
maintain that which is already in
place; improve our current stock;
24
April 1991/CONSTRUCTOR
A YEAR OF ACCOMPLISHMENT
and begin now to catch up on
public construction is: open com-
the backlog of clearly identified
petition with bids publicly opened
needs. The employment oppor-
and awarded to the lowest re-
tunities that will flow from such
sponsive and responsible bidder.
investment will be boundless,
That position will prevail because
and infinitely more beneficial and
it serves the public interest.
long-lasting than "jobs bills" that
are the usual short answer to
On a personal note, I was
economic problems.
privileged last month to be a re-
cipient of ENR joint awards with
The courage, steadfastness
Dominic L. Ozanne, President of
and resolve demonstrated by
the National Association of
President Bush in freeing Kuwait
Minority Contractors, for our ef-
is just one manifestation of what
forts to build bridges of under-
the United States can do when
standing between AGC and
strong leadership identifies the
NAMC. It is mildly ironic that 10
public interest and serves it. In
years earlier ENR similarly
my opinion, it is now time to turn
honored me for the legal
that same determination, stead-
challenge to the SBA 8(a) pro-
fastness and courage to address-
gram in the Lower Mississippi
ing our economy. It is my hope
Valley. After 10 years in pursuit
that Congress will recognize that
of justice, the courts ruled
unity of purpose, bipartisanship,
against the government. The only
Marvin M. Black
rejection of legislative proposals
issue awaiting determination is
that would divide our nation and
reimbursement of our substantial
adoption of legislative proposals
legal fees. My point in referenc-
that will result in investment in
ing this is that adherence to prin-
our economy are the actions that
ciple is not incompatible with the
must now be taken in the public
direct and sequential actions that
interest.
are inherent in our industry. I am
Within the construction in-
confident that the day will come
dustry, I believe that better rela-
when the rights given to all in
tionships exist between the
our glorious Constitution will be
leaders of construction associa-
unabridged, absent asterisks,
tions than ever before. These
absent "yes-buts" and warmly
relationships are going to be
embraced by all in a one-nation
America.
essential in meeting the chal-
lenges and availing of the oppor-
During my term at the helm of
tunities that are ahead for our
this great enterprise, AGC, I have
industry. I have no doubt that we
Robins H. Jackson
received and fully appreciate un-
will meet our challenges and
wavering support from our Officer
grasp our opportunities.
corps of Senior Vice President
During the past year, AGC has
Marvin M. Black, Vice President
maintained its opposition to any
Robins H. Jackson, and Treasurer
form of special preference in the
Chris F. Woods. On Tuesday,
award of taxpayer financed con-
March 19, I will be turning over a
struction contracts. Our opposi-
strong, effective and respected
tion is undergirded by the
AGC to Marvin Black secure in
consistency of having opposed
the knowledge that AGC will be
special preference set-asides that
in good hands. My support for it
favored the majority of us. That
and what it stands for will con-
consistency carries over to our
tinue. With that commitment is
opposition, which will also suc-
my heartfelt appreciation for the
ceed, to competitive negotiation
leadership opportunity you good
which is another form of special
people provided me. May God
preference extended to those
continue to bless you and
America.
Chris F. Woods
with whom the agencies prefer to
contract. AGC's position on
- Kirk Fordice, President
CONSTRUCTOR/April 1991
25
EXECUTIVE VICE PRESIDENT'S REPORT
function of the job, and the in-
plaining to owners the impor-
stitutional result of almost three
tance and benefits of properly
quarters of a century of AGC at
assigning risks among the con-
work. Yet, it is a heady feeling to
struction team.
be at the center of things when
the seeds ripen that others have
AGC's efforts to prevent the
sown.
Wetlands issue from continu-
AGC's 1990-1991 year was one
ing to adversely impact con-
in which:
struction include:
Budgeted amounts were ex-
Comments to the White
ceeded in minimum, volume
House Domestic Policy
and National Associate
Council which is reviewing
Member dues categories;
the government's Wetlands
An AGC victory was scored
policies;
with the repeal of the estate
Testimony before the House
valuation rules in Section
Small Business Committee
2036(c) of the Internal Revenue
on the adverse impact the
Code which had made it pro-
government's current "no-
Institutional result of almost three quarters of a
hibitively expensive to transfer
net-loss" of Wetlands policy
century of AGC at work.
a closely held business from
is having on the construc-
There have been times during
one generation to the next.
tion industry;
Opposition to an effort by
the past year when, if affordable,
Congressional testimony was
the Corps of Engineers to
it would have been a privilege to
prepared and given to Con-
significantly increase permit
pay instead of being paid to be
gress on 29 separate
and other fees associated
Executive Vice President of the
occasions.
with its Wetlands regulatory
Associated General Contractors
President Bush's veto of the
program;
of America. Examples: numerous
Kennedy/Hawkins Quota Bill
meetings at the White House and
Opposition to a joint ini-
was sustained.
tiative of the Defense De-
meetings in small groups with
Federal funding for construc-
President Bush immediately
partment and Environmental
tion increased by $5 billion
before, during and at the conclu-
Protection Agency to in-
over the previous year.
crease enforcement of the
sion of his successful effort to
free Kuwait; accompanying your
The Supreme Court's J.A.
government's "no-net-loss"
President Kirk Fordice to meet-
Croson decision secured by
of Wetlands policy; and
AGC resulted in at least 18
ings with overseas contractors in
Support of legislation to en-
Amsterdam and Tegucigalpa; be-
similar decisions by lower
sure that the government's
ing with AGC leadership for the
courts.
Wetlands policies are not
fourth time in six years when the
Costly family and medical
allowed to become a de
President of the United States
leave legislation was
facto policy of "no-new-
addressed them at the White
prevented.
growth."
House; accompanying President-
Punitive legislation that would
Elect Black earlier this month to
have vastly increased criminal
the Annual Seabee Ball; and con-
penalties for violation of
tact with power centers in
OSHA's standards was slowed
America.
but resurfaces in the 102nd
To some, this perspective on
Congress.
association management might
Multi-thousands of copies of
seem trite, but is cited in an at-
"An Owner's Guide to Saving
tempt to make larger points. On
Money by Risk Allocation,"
all such occasions, minimum
jointly developed by AGC and
thought brings realization that
ACEC, have been distributed
being in exalted company is a
throughout the industry ex-
26
April 1991/CONSTRUCTOR
A YEAR OF ACCOMPLISHMENT
TAKE
HAZARD
NMMY NEW
CHARGE:
AGC
COMM.
Temporary
Guide For A
Training in
Electricity
Basic Company Safety Program
Haz/Com
Standard
ON
THE
SOLID
MMY NEW MMN
WINNING
GROUND:
TICKET:
Safe
Jobsite
Excavation/
House-
Trenching
keeping
SAFETY:
THE
NEW
THE
CHOICE IS
BOTTOM
YOURS:
LINE
Personal
Impact on
Protective
contractors
Equipment
65555
AGC SAFETY SERVICES
AGC's commitment to the 90's
safety videos on subjects such
Safety services were expanded
as the Decade of Safety and
as:
by the addition of six videos:
Health will intensify because:
Stairways and Ladders;
Safety: The Bottom Line;
It is a moral commitment and
Jobsite Safety Inspections;
The Winning Ticket:
obligation to employees;
Accident Investigation;
Housekeeping on the Jobsite;
Construction contractors and
Confined Space Entry;
Take Charge: Working Safely
owners recognize the econom-
ic impact on business costs
Fall Protection;
with Temporary Electricity;
and survival when Experience
Scaffolds;
Hazard Communication Train-
ing Video and Instructor's
Modifier Rates determine
Hazardous Waste Safety;
Manual;
eligibility for contracts; and
Drug Free Work Place; and
On Solid Ground: A Plan for
Escalating costs of health
Emergency Preparedness.
Safe Excavation and Trench-
care, combined with the pros-
ing; and
pect of punitive legislation, will
In addition, AGC is making
The Choice is Yours: Guide to
result in mandatory measures,
available to all other national
Personal Protective Equipment.
all of which are preventable by
construction interests, without
dedication to safety and
charge, a reproduction copy of
health.
AGC's Guide for a Basic Com-
Safety: The Bottom Line. This ex-
pany Safety Program was re-
cellent video was produced by
printed to meet heavy demand
Accordingly, AGC will increase
AGC with the aid of a grant from
within weeks of its initial
its safety videos this year to a
The Business Roundtable (BRT)
publication.
total of 15 by the addition of
that was part of BRT's Construc-
tion Industry Safety Excellence
Award to the association.
AASHTO responded favorably
Foundations were put in place
Efforts continued to ensure
to AGC's recommendations
for AGC's efforts to secure
that Congress reauthorizes the
regarding the open competitive
legislation to limit the use of
nation's federal-aid highway
bid system in the federal-aid
competitive negotiation on
program on time and at
highway program.
federal construction projects.
necessary funding levels.
The Foreign Buildings Office at
AGC had a leadership role in
the Department of State
the successful effort to have
Work continues to increase
dropped competitive negotia-
the National Association of At-
federal capitalization funding
tion in favor of open com-
torneys General withdraw
for state clean water revolving
petitive bidding on embassy
model construction and design
funds and to continue federal
construction projects.
contract documents for public
funding beyond 1994 for this
works projects.
program.
CONSTRUCTOR/April 1991
27
AGC ANNUAL REPORT-1991
AGC was successful in retain-
Consistent support for wage
development of a joint Corps-
ing government safeguards
surveys that will bring Davis-
Industry Alternative Dispute
that will prevent abuses of
Bacon requirements into line
Resolution Training Program.
individual sureties.
with actually prevailing
Progress has been made in
AGC efforts to prevent im-
wages.
working with subcontractor
proper interpretation of the
and specialty contractor
Davis-Bacon Act include:
AGC's wide range of mean-
organizations on industry
Four friend-of-the court
ingful services is repeatedly
issues including bidding pro-
briefs in support of AGC
and beneficially brought to the
cedures, cash flow and project
member Midway Excavators
attention of the industry as
close-out procedures.
in its challenge to Davis-
part of the association's
Bacon coverage for over-the-
Work is virtually complete on a
marketing program.
road truck drivers and finan-
guide to assist AGC members
AGC has continued to work
cial assistance to the AGC
in pursuing the underground
of New Hampshire on the
harmoniously and effectively in
storage tank removal, clean up
coalitions with construction
and installation market and in
same issue;
and business community in-
understanding EPA's under-
A friend-of-the court brief in
terests recognizing that getting
ground storage tank regula-
support of AGC member
the job done transcends
tions. This market is estimated
Ames Construction in a
profile.
at $90 billion to clean up 1.5
similar challenge to Davis-
million leaking tanks.
Bacon coverage;
Cooperative liaison continues
A friend-of-the-court brief in
to grow on numerous fronts
Expansion has occurred of
support of AGC member
with construction unions out of
AGC work with agencies such
Aleutian Constructors in
mutual and growing recogni-
as the Federal Bureau of
support of its challenge to
tion that it is to the benefit of
Prisons, the Department of
Davis-Bacon coverage of
the entire industry to work
Veterans' Affairs, General Ser-
construction camp workers;
together on issues where com-
vices Administration, Depart-
Consistent support for
mon views jointly presented
ment of Interior, Soil
regulations, now issued, that
have better prospects of
Conservation Service, Naval
will permit contractors to
prevailing.
Facilities Engineering Com-
employ helpers on Davis-
Progress is being made with
mand (NAVFAC), the Postal
Bacon projects; and
the Corps of Engineers in the
Service, Federal Highway
Administration, and Corps of
Engineers.
At the center of things -- White House welcome for AGC's Sixth Annual Convention in Washington, D.C. in 1925 with President Coolidge.
28
April 1991/CONSTRUCTOR
A YEAR OF ACCOMPLISHMENT
The association's committee
exceed $2,600,000 and are
CONSTRUCTOR magazine has
structure continues to serve
parallelled or exceeded at the
been effectively availed of to
the industry by identifying and
chapter level.
bring market opportunities to
addressing problems in their
AGC conference programs
the attention of the member-
early stages so that the
have continued successfully
ship, and to advance member-
resources of AGC at the
with continued recognition for
ship interests with owners.
chapter and national levels can
the effectiveness of the Ad-
be focused on such problems.
vanced Management Program
AGC's strength continues to
that has been sold out on nine
be built by the expansion of
successive occasions.
CONSTRUCTION MANAGEMENT MAGAZINE JANUARY 1991
the National Associate
Progress continues to be made
Member Program. Just one ex-
QUALITY CONSTRUCTION
with the Tennessee Valley
ample of the benefits from this
Authority with the objective of
is the leadership role of the
having its construction proj-
National Associate Members
ects put on the market for
Council in helping defeat the
open competitive bidding in-
Kennedy/Hawkins Quota Bill
stead of being constructed
under the direction of Chair-
with in-house forces.
man Steve Dunlap.
AGC Chapter Managers work
Development of the future con-
cooperatively with each other,
struction workforce continues
with their national staff col-
as a priority throughout the
leagues and with executives at
association through methods
other business groups to ad-
such as joint apprenticeship
vance construction interests.
programs, unilateral training,
AGC's Education and Research
and attracting youth to con-
THE OWNER'S EDGE
Foundation has, in addition to
struction careers through the
making STP (Supervisory Train-
work of the Construction In-
dustry Workforce Foundation.
Cooperation with The Business
ing Program) the industry suc-
Roundtable and other owner in-
cess story, invested in the
Efforts continue with the Corps
future by the award of scholar-
of Engineers and Bureau of
terests continues as part of
AGC's market advancement ac-
ships to those who will be the
Reclamation to improve the
tivities.
industry of the future. Such
Corps' equipment cost guide.
scholarships awarded to date
CONSTRUCTOR/April 1991
29
AGC ANNUAL REPORT-1991
AGC efforts have resulted in
Current legislative challenges
State Revolving Loan
the revitalization of the Rebuild
and opportunities facing the in-
program, this legisla-
America Coalition under the
dustry include:
tion presents an oppor-
leadership of Atlanta Mayor
"So called Civil Rights
tunity to address the
Maynard Jackson.
Act of 1991"-Intro-
Section 404 and Wet-
duced in the House as
lands issues;
H.R. 1, the bill contains
Striker Replacement-
no provisions address-
This is the lead labor-
ing business and in-
management issue now
dustry concerns about
being pursued by labor.
unlimited punitive and
This legislation would
compensatory damages
prohibit employers from
and is drafted in such a
hiring permanent re-
way as to force
placements during an
employers to hire by
economic strike. It also
quota and result in a
would greatly increase
litigation explosion;
the ability of labor to
Rebuild America Chairman Jackson and Kirk
Surface Transportation
organize non-union
Fordice.
Assistance Act Re-
firms;
authorization-This
AGC's Political Action Commit-
legislation presents the
Davis-Bacon Reform-
tee (PAC) has continued its ef-
industry with the oppor-
AGC will continue to
fectiveness. Without the PAC,
tunity to increase fund-
support legislation to
your association would be at a
ing levels for vitally
increase the dollar
competitive disadvantage with
needed federal
threshold for applica-
others in the political process.
transportation
tion of the Davis-Bacon
While much ink has been
programs;
Act to federally funded
spilled alleging undue in-
Water Quality Act
construction projects
fluence by PAC's on Congress,
Reauthorization-In ad-
and oppose legislative
there has been a parsimonious
dition to providing the
efforts to expand the
use of ink to describe the "in-
industry with an oppor-
Act's coverage beyond
kind" or "door-to-door" ac-
tunity to obtain addi-
the site of the work;
tivities of others involved in
tional funding for the
politics. Also generally ignored
by critics of PAC's is the con-
stant close scrutiny given to
every aspect of their opera-
tions by the Federal Election
Commission. Bottom lines: the
importance of AGC's PAC can-
not be overstated; when its im-
portance becomes better
understood, its support will
grow beyond the 8% of the
membership that supports it to
the benefit of all.
Sue Loomis, AGC's Executive Director of Congressional Relations, meets with
Rep. Robert Roe, Chairman of the House Public Works and Transportation
Committee.
30
April 1991/CONSTRUCTOR
A YEAR OF ACCOMPLISHMENT
Legislation to Overturn
surance carrier against
of provisions is man-
Croson-Legislation to
the manufacturers. The
dated, allowing no flexi-
overturn the Supreme
challenge to the in-
bility in the devel-
Court's landmark deci-
dustry is to ensure
opment of benefits, and
sion in Croson is ex-
product liability reform.
limiting the choices an
pected to again be
employer will have in
introduced and will be
Indemnification for Con-
how to allocate limited
opposed by AGC and
struction Contractors
resources for benefits;
others; and
Performing Superfund
Federal Product Liability
Clean Up Work-
Construction Safety and
Reform-Workers'
Following AGC success
Health "Reform"-This
Compensation-In the
in the last Congress to
issue has reappeared
101st Congress, a prod-
increase the availability
for the third time in
uct liability reform bill
of surety bond pro-
Congress. The
was introduced, and it
ducers on Superfund
challenge will be to
is expected that a
work, AGC continues to
keep additional paper-
similar measure will be
advise and persuade
work requirements, and
introduced this Con-
Members of Congress
other burdensome provi-
gress. The legislation,
on the constraints that
sions such as the re-
as introduced last year,
the lack of adequate in-
quirement for
would have had a
demnification for con-
construction safety
devastating effect on
tractors places on the
specialists, out of any
the nation's already
ability to develop a
legislation that may be
weakened workers'
strong, competitive
passed. If such legisla-
compensation system.
market for this work.
tion does advance, it
The legislation would
AGC will look for an op-
provides an opportunity
have reduced product
portunity to advance an
for the industry to
liability claims by the
indemnification proposal;
enact provisions on
amount of workers'
Pension and Tax Code
employee accountability
compensation a claim-
Simplification-
and drug testing;
ant received and would
Legislation to achieve
Criminal Safety and
have effectively elim-
these goals is being in-
Health Penalties-AGC
inated the rights of
troduced again this
will continue to strongly
subrogation by the
Congress. Areas to be
oppose counterproduc-
employee or its in-
addressed include:
tive legislation that will
minimum participation
greatly increase
requirements; definition
criminal penalties for
of highly compensated
violations of OSHA
employees; definition of
standards;
leased employees; the
Competition in
burdensome lookback
Contracting-AGC con-
method;
tinues to convince
Family and Medical
Members of Congress
Leave Bill-This legisla-
on the best and pre-
tion, which passed last
ferred procurement
year but was suc-
method for the con-
GENERAL
cessfully vetoed by the
struction industry on
ASSOCIATED
CON
President, has again
work financed by tax
been introduced. AGC's
dollars
competitive
main objection remains
sealed bid. This effort
that the implementation
is underway to counter
THE
the increasing use of
OF
AMERICA
competitive negotiation
by various agencies.
House Committee on Ways and
Means Chairman Dan Rostenkowski
addressed AGC's Tax and Fiscal
Affairs Committee in January.
CONSTRUCTOR/April 1991
31
AGC ANNUAL REPORT-1991
AGC
VOICE FOR YOUR
AGC Highway Division Vice
Chairman Robert Desjardins, Cian-
bro Corp., Pittsfield, Maine,
testified before the House on
Transportation Trust Funds.
R. FORDICE
AGC President Kirk Fordice
testified before Congress on four
occasions:
On FY 1991 Military Construc-
tion Appropriations.
AGC Municipal/Utilities Division
On the Surety Association Act
Chairman Sam Hunter, T.A. Lov-
of 1989.
ing Co., Goldsboro, N.C., testified
On the Construction Safety,
before Congress on three occa-
Health and Education Im-
sions regarding funding for the
provement Act.
EPA's State Revolving Fund for
On Civil Penalties for OSHA
construction of wastewater treat-
Violations.
Robert Bostic, Forterra Corp., Nor-
ment facilities.
folk, Va., testified before the
House on Wetlands.
VERSIZE LOAD
BUSINESS IN CONGRESS
Warren Diederich, Industrial
Builders Inc., Fargo, N.Dak.,
testified before the House on lack
of availability of surety bonding for
Superfund and other federal haz-
ardous waste clean-up programs.
ERAL
CONT
AGC Highway Division Chairman
Frank Willis, Willis Construction
Co., Florence, S.C., testified before
CONTRACTURS.
the House on FY 1991 Department
of Transportation Appropriations.
ERICA
Three AGC members testified before Congress on the Valuation of Transfers of Family Businesses, urging
repeal of IRS Code Section 2036(c). Pictured above, left to right, they are: Steve Massie, Jack L. Massie
Contractors, Inc., Williamsburg, Va.; Frank A. Merlino, Darmody, Merlino and Co., Boston, Mass.; and David
Lambert, Lambert Construction, Stillwater, Okla.
MANITOWOC'S M-65W!
For further information about the M-65W,
Manitowoc
MANITOWOC ENGINEERING CO.
or any other crane in the M-Series® line,
Division of The Manitowoc Company, Inc.
contact our Wisconsin headquarters or
500 South 16th Street, Manitowoc, WI 54221 USA
your local Manitowoc distributor.
Telephone: 414-684-6621 Telefax: 414-683-6277
Reader Service No. 8
© MANITOWOC 1990/6609
AGC ANNUAL REPORT-1991
Transportation Secretary Skinner and President Fordice listen.
At the outset it was acknowl-
The President greets AGC President-Elect Marvin M. Black.
edged that today's AGC access
to the centers of power is the in-
stitutional result of almost three
quarters of a century of AGC at
work.
when President Bush and
Boyden Gray and Mr. McClure on
In four of the past six years,
Secretary of Transportation Sam
Striker Replacement, Parental
AGC national and chapter
Skinner previewed the Bush Ad-
Leave and Civil Rights Legisla-
leaders were addressed at the
ministration's Transportation Plan.
tion; and February 26 with
White House by the President of
My other participation in White
President Bush at a Roosevelt
the United States.
House meetings since your last
Room meeting.
During the past year, I was
Convention: March 27 meeting
In addition, my staff col-
privileged to accompany Presi-
with Chief of Staff Sununu on
leagues have attended White
dent Fordice and Senior Vice
Child Care Legislation; October 1
House meetings this AGC year
President Black to a private
with Vice President Quayle and
on seven occasions.
meeting with President Bush
Chief of Staff Sununu on Budget
Your staff is totally devoid of
prior to his addressing AGC na-
and Deficit Reduction; November
illusions and knows that whether
tional and chapter leaders on
28 for President Bush's signing
AGC access is to the White
April 24.
of Affordable Housing Legisla-
House, government agencies or
President Fordice, and a few
tion; December 21 meeting on
America's other power centers, it
other leaders of major industries,
Budget scoring provisions with
is just that
AGC access
met at the White House on June
White House officials; December
through your political involve-
12 with Chief of Staff John H.
19 with President Bush on Opera-
ment, your value and conse-
Sununu and Dr. Roger Porter,
tion Desert Shield; January 24
quence in your communities, and
Assistant to President Bush for
meeting with Chief of Staff
your top and bottom line commit-
Economic and Domestic Policy,
Sununu, Dr. Roger Porter and Ms.
ment to Skill, Integrity & Respon-
on the Kennedy-Hawkins Quota
Bobbie Kilberg on the State of
sibility.
bill.
the Union, Budget and related
-Hubert Beatty,
On February 13, I was again
matters; February 26 with Chief
Executive Vice President
privileged to return to the White
of Staff Sununu, Dr. Porter, Ms.
Associated General Contractors
House with AGC's Kirk Fordice
Kilberg, White House Counsel
of America
34
April 1991/CONSTRUCTOR
A YEAR
OF CHALLENGES
PRESIDENT BLACK ESTABLISHES HIS AGENDA FOR AGC
The following speech was delivered by
AGC President Marvin Black at his in-
under the banner of AGC to advance our
often have to defend, have to meet that
auguration at the AGC Convention in
industry;
important criteria of Skill, Integrity, and
Honolulu, Hawaii.
And finally, I hope it will be said of
Responsibility.
me, as I say of Kirk Fordice he is
a
In every single AGC endeavor down
L
gentleman.
through the years in every AGC ac-
On Saturday, at the Opening General
complishment
the Skill, Integrity, and
adies and gentlemen, I
Convention Session, I gave a little detail
Responsibility we espouse and hold high
am really looking forward to starting my
on 10 specific objectives for the coming
has served our industry well.
job as AGC's new President.
year as follows:
Back in 1918 when much of our coun-
The first part of that job is a speech
Build construction quality;
try was still an abundant frontier, our
entitled, "Objectives 1991.'
Build owner confidence in AGC
Skill, Integrity, and Responsibility helped
But I am not ready to go to work for
members;
just a few minutes, because I must first
carry us forward on the rush of growth
Build strong relationships with all
that ground to a halt with the Great
tend to some very important family
construction industry groups;
Depression.
business.
Build legislative strength and effec-
Our industry and association survived
Failure to meet that family obligation
tiveness;
that tough experience, and we were car-
would get me off to a bad start from
Build coalitions to secure adequate
which AGC would recover, but would
ried forward on another rush of oppor-
investment in the nation's entire stock
tunity in the war-related construction of
give me considerable problems with
of public works infrastructure;
the early 1940s.
another very large group.
Build the construction industry's
First and foremost, I want you all to
Our industry and association began to
image;
surge, grow, and gain strength in the
again meet my bride of 47 years,
Build a reputation as an industry
mid-'50s, driven by the most massive
Joeanne, in whom I am well pleased! And
with total dedication and commitment to
I'd like you to meet my sons, Mike and
and successful public works program in
the safety and health of our workforces;
history the construction of the Inter-
Steve, and my daughters, Laurel and
Build relationships with all public
Jennifer.
state Highway System.
awarding agencies;
I am now ready to go to work, and I
We established superb links between
Build industry awareness of the
will start that process by asking all of you
our cities, to the outer regions of our
value of AGC membership; and
for your support in helping me meet my
frontiers, and the consequences of our
Build industry ethical standards.
objectives for the Associated General
work were that the comforts of our
I regard these as remarkable, even
Contractors of America during the next
citizens were the envy of most of the
historic objectives.
earth.
12 months.
They are remarkable and historic
My immediate objective is to leave no
We built new skylines in our
because they are the deep roots of every
stones unturned and to leave no fields
metropolitan areas. We built shopping
objective of the Associated General Con-
unplowed SO that a year from now it can
centers that thrived on the abundance of
tractors of America since our association
be said of me, as I now say of Kirk
our society but we also helped build
was established in 1918.
Fordice:
something else.
In meeting these objectives over the
He was open and direct;
Dare we say it? Should we dare say,
years, the good people who built AGC
He knew that as important as AGC
or even acknowledge, that we also
were building an effective trade associa-
is, the construction industry comes first;
helped to build a complacency that is now
tion that is respected by every interest
a threat to all of us?
He had principles. He had strong
with which we communicate under
views. He was determined but, above all
When I use the term "we" I do not
AGC's banner of Skill, Integrity, and
else, he knew and valued that our
mean just us, because there were lots
Responsibility.
association is one huge family of multi-
of co-conspirators in our country who
Our association is respected because
faceted interests of good people from
helped build a complacency that could
the policies we establish, the objectives
become a millstone around America's
great companies who freely associate
we seek, and yes, even the positions we
neck.
(continued)
CONSTRUCTOR/April 1991
35
A YEAR OF CHALLENGES (continued)
Only a few weeks ago, and with great
pride, we rediscovered that America had
the will, the means, and the technological
know-how to send Iraq packing from
Kuwait.
But, before that awesome display of
will, determination, and technology,
there were those in our society who
GENERAL
MARVIN
were complacent and who did not really
BLACK
believe that these United States could
measure up.
With full understanding of the mean-
ing of complacency, let me suggest that
some of the areas in which our industry
could be accused of complacency might
be:
We had to respond to market
forces, and SO our industry shifted from
being one where contract construction
was largely done under collective bar-
gaining agreements.
Is it possible that complacency
CONTRACTORS
prevented us from attracting and train-
ing the construction workforce that is no
longer coming from its traditional
sources?
How did we get to the point where
safety and health is a major item on the
agenda of the Congress of the United
States and in many state capitals? Was
AMERICA
it because we had become complacent on
the subject of safety and health, or was
what was it that has brought our industry
ethical standards.
it because we had become complacent
to the point where there is a too
I have a great aversion to pessimism,
about telling the industry, telling Con-
widespread belief and reality that at-
and a boundless optimism in the future
gress, and telling the public what we
torneys, whether they serve the con-
of our industry and our nation, but I ven-
were actually doing to advance and pro-
struction industry or prey on it, are now
ture to suggest that even the most abun-
tect the safety and health of our
the success stories of the industry while
dant society cannot sustain the costs of
workforces?
we increasingly become caught in the
fractiousness, disputes, ineffective rela-
Was it complacency that saw in-
vise of diminishing returns?
tionships, inadequate image, or of failing
surance rates skyrocket even as
It is this basic concern with-and
to raise our industry's ethical standards.
coverage dropped?
desire to do something about it-the
AGC's history demonstrates the good
Perhaps it was not complacency at all.
litigation explosion that is a cancer in our
judgement of people who preceded me
Perhaps it is just possible that we had
society and a plague on our industry, that
in this office in identifying the issues im-
become accustomed to, and comfortable
is driving some of the objectives I talked
portant to our industry.
with, the age of abundance.
about on Saturday, referenced at the
Let me remind you of just a few of
But it is just possible that even our in-
outset and now repeated again:
them.
dustry could have become caught up in
Let us build construction quality;
In 1971, the essence of John Healy's
the syndrome that the piper would never
Let us build owner confidence in
message was, "A fair day's work for a
have to be paid.
AGC members;
fair day's pay. You are aware of the
If it was not complacency, what
Let us work to build strong rela-
shifts in workforces that have occurred
then was it that allowed us smart
tionships with all construction industry
because that caution was not sufficient-
business people to assume SO many risks
groups;
ly heeded.
that lack of complacency would have
Let us build the construction in-
In 1972, Jim McClary stressed that we
placed where they belong?
dustry's image;
get back our right to manage.
How did "fuzzy" language creep into
Let us work to build a reputation
In 1973, Nello Teer was determined
the industry's contract documents and to
as an industry with total dedication and
to build "contractor power" and he set
the point that even the National Associa-
commitment to the safety and health of
about it.
tion of Attorneys General thought it had
our workforces;
In 1979, and long before it became the
the credentials to draft its now-
Let us work to build industry
problem it is today, Paul Howard had
withdrawn model contract documents for
awareness of the value of AGC member-
great concerns about industry pro-
public works construction?
ship; and
fitability.
If it was not complacency, then
Let us work to build industry
In 1982, Tony Heldenfels determined
36
April 1991/CONSTRUCTOR
that AGC was going to push investment
comes rolling in the door.
My interest in the subject starts with
in construction. And he did!
Just as it is now a fact of life that ex-
smaller projects where either failure to
A year later, Richard Pepper proper-
perience modifier rates are becoming the
communicate or lack of communication
ly kept up a drum beat to secure cost-
cutting edge that will prevent some con-
can result in expensive litigation or ex-
effective construction.
tractors from getting work, my fear is
pensive, inconclusive arbitration or alter-
In 1984, Doug Pitcock advanced the
great that the day will come when our
native dispute mechanisms.
economic importance of construction and
owners will become as sophisticated
Earlier I introduced some of the
was followed in 1985 by Vernie Lind-
about the cost impact of litigiousness as
younger members of the Black family.
strom's program of concentration on
they are already demonstrating in the
We older people already know what they
construction as the opportunity in-
safety and health field.
are learning.
dustry which it still is!
In my opinion, the time has arrived
They are learning that the vast majori-
In 1986, Dick Hall sounded a clarion
when all in our industry must work
ty of the people in our industry are
call for quality in construction, pointing
together-and in fact become partners
honest and industrious people.
out that quality inspires confidence.
together-in eradicating every vestige of
They are learning too, and paying the
In 1987, Dan Huestis brought AGC
needless litigiousness in our industry.
same hard price we paid, that there are
resources to wider attention by having
those who prey on our industry, who cut
the industry engage in a competition of
corners, who have others carry them,
ideas.
who seek unfair advantage at every op-
Jim Supica advanced the importance of
"We must
portunity, and whose conduct reflects
political activism, Paul Emerick began to
make the industry focus on its future
find the very
unfavorably on the honorable people who
are the vast majority in construction.
workforce needs, and Kirk Fordice re-
One other thing these young people
established that everything we do is, and
best ways to
are learning-and it is ironic we are learn-
has to be, done in the public interest.
ing it at the same time-is that in this age
In many ways, the underpinning of my
when we are swamped with information,
objectives goes back to Richard Pepper's
advocacy for cost-effective construction.
secure open
good systems of communication have
broken down.
He had the vision to know and the
communication
The single word "communication" is
courage to acknowledge that the
what partnering is all about.
customer is boss, is always right, and has
to be pleased.
with our part-
We must find the very best ways to
secure open communication with our
His foresight also recognized that the
day would come when owners, driven by
partners in the construction process.
world competition to become more cost-
ners in the
We must secure their trust and embed
in them similar trust in us.
effective, would begin to focus on all fac-
construction
We must identify, one to the other and
tors adversely impacting costs.
up front, potential problem areas on the
And SO it came to pass that today's
job SO that they do not become actual
owners have more than a passing in-
terest in the experience modification
process."
problems.
Just as owners with concerns about a
rates of construction contractors.
In fact, the day is here when those
contractor's dedication to safety have the
Let us work together to improve all
attitude "Don't call us-we won't call
whose safety records do not measure up
contract documents to free them of
may have difficulty, severe difficulty, in
you,' let's have that as one of our goals
points of contention.
even obtaining consideration from pro-
for any termites in the legal profession.
Let us work together, and with others,
spective owners. It's known as the
To my way of thinking, there is little
to ensure that contract documents clearly
"don't call us-we won't call you"
difference in being caught in either the
place responsibility where it belongs.
syndrome.
vise of litigation, the vise of arbitration,
Let up pick up the ball and run with it
A message we have heard, over and
or the vise of alternative dispute
to secure a renaissance of the partner-
over, here in Honolulu, is that safety, or
mechanisms when the consequences of
ing concept that was really the underpin-
the lack of it, and the soaring workers'
any one of them put our businesses in
ning of the construction industry in the
jeopardy.
unemployment compensation costs
old days when SO much business was and
associated with insufficient safety con-
In working to justify and reward the
could be done on a handshake.
confidence that our association has ac-
trols, is now a problem of major pro-
I want AGC to develop a model part-
portions.
corded me, I guarantee fair, open, and
nering program for use by all the industry
AGC is trying to do something about
full attention to the multiple interests that
that will delineate the basic and easy
that problem by the expansion of our
comprise this great trade association.
steps that can be taken to reduce the
safety services and by heavy emphasis
I seek your support in all of my
litigation that can crush our industry.
to our members, and to all in the in-
endeavors and pledge to you that you will
Successes with the partnering concept
dustry, to give increased attention to
not find me wanting in my determination
were evident at the special seminar on
safety.
to meet your exacting standards in ac-
the subject a few days ago and
We are still the abundant society, but
complishing AGC's mission and in serv-
demonstrate that partnering can be ef-
not abundant to the point that business
ing our industry with Skill, Integrity, and
fective on large projects.
Responsibility.
CONSTRUCTOR/April 1991
37
AGC
QUALITY
SERVICE
CONTRACTORS' UNDERGROUND STORAGE
TANK INFORMATION GUIDE
Federal law requires the clean-up of 1,500,000 leaking underground storage
tanks and AGC is working to help its members in securing access to this $90
billion market.
AGC's newest publication explores the risks, requirements and opportunities
associated with this expanding construction market and includes:
Information Defining the Market
Constraints to Market Entry (Certification
Reporting/Testing
Financial)
Tank Installation Options
Environmental Concerns
This AGC publication provides basic information that construction contractors must be knowledgeable
of before entering this market. The publication is not intended to be a "how to" book that
spells out what it takes to be successful in this market.
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THE
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PUBLICATIONS DEPT., 1957 E STREET N.W., WASHINGTON, D.C. 20006-5199
Telephone: (202) 393-2040 FAX: (202) 347-4004
THE FULL SERVICE CONSTRUCTION ASSOCIATION FOR FULL SERVICE MEMBERS
Why risk anything less?
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request Bulletin 268.
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FIBRE-METAL
Reader Service No. 9
THE HIDDEN COSTS
OF JOBSITE
ACCIDENTS
violations and accidents can result in im-
A POOR SAFETY RECORD
proved profit. Safety requires the pro-
tection of personnel and property. Either
CAN BE MORE EXPENSIVE
can be very expensive to repair and/or
replace.
THAN YOU THINK
Establishing and implementing a sound
company safety program will be bene-
ficial to a construction contractor of any
size. Benefits include lower workers'
compensation premiums, reductions in
direct and indirect costs associated with
workplace accidents, and, quite often,
more competitive bidding capabilities.
UNDERSTANDING EXPERIENCE
MODIFICATION RATES
The Experience Modification Rate
(EMR) is the key to reducing workers'
compensation premiums. EMR is multi-
plied by a "manual premium" to deter-
mine the actual premium rate. The
manual premium is a set amount estab-
lished by the insurance industry and is
based on the type of construction work
performed. Your EMR is determined
roughly by dividing the (insurance in-
Michael Timura, (left) AGC's Safety and Health Committee Chairman, and Paul King,
dustry predetermined) number of ex-
AGC's Safety Engineers Advisory Committee Chairman, were selected jointly as AGC's
pected losses into your company's
national Committee Chairmen of the Year. (Also honored were co-winners Bud Madigan
number of actual losses. In simplest
of the Collective Bargaining Committee and Lou Selig Jr. of the American Consulting
terms, the lower the EMR the lower the
Engineers Council/AGC Joint Committee.)
workers' compensation premium.
Just how much of an impact does your
EMR have on your premium? Keep in
mind that Workers' Compensation
CRIMINAL CHARGES
W
Premiums = EMR X manual rate and
FOR SAFETY VIOLATIONS
hen news briefs such
that the average EMR is 1. Suppose the
Criminal charges were brought
against a construction company and its
as this one appear in the media, the
insurance industry's designated manual
project managers for 12 misdemeanor
message seems loud and clear: Safety
rate is $10 on every $100 of payroll for
violations and jobsite accidents can be
the type of construction your company
violations of the Occupational Safety
and Health Act in a 1988 explosion
costly to construction contractors. In ad-
performs. If your EMR is 1.9, you will
that killed three workers. The U.S.
dition to heavy fines and possible im-
be paying $19 on every $100 of payroll
Attorney brought the charges short-
prisonment, contractors may face other
(1.9 X $100 per $100 of payroll) while
unexpected expenses if their safety pro-
your competitors may be paying an
ly after an OSHA investigation. If con-
grams are not in order.
average of $10 (1 X $10 per $100 of
victed the company could receive a
fine of up to $6 million and its
Most construction employers realize
payroll). This means that if you have 30
managers could receive up to $1.5
the moral obligation to protect their
employees with an annual payroll of
million in fines and three years each
employees from jobsite hazards. How-
$600,000, your premium would be
in prison.
ever, many employers have not dis-
$114,000. A similar-sized competitor
covered how reductions in safety
with an average EMR would pay
40
April 1991/CONSTRUCTOR
AGC
Guide For A
$60,000. That's a difference of $54,000.
If a similar-sized competitor has a good
Basic Company Safety Program
safety record and a lower than average
EMR such as .5, its premium would be
$30,000 or one-half the average premium.
INDIRECT COSTS
Most contractors are fully aware of the
direct cost of accidents, such as workers'
compensation costs and medical ex-
penses. Many contractors may not
realize how many indirect or out-of-
pocket costs also occur with each acci-
dent. Indirect costs include but are not
limited to:
lost productivity
disrupted work schedules
administrative time for investiga-
tions and reports
training replacement personnel
wages paid to injured worker(s) and
other workers for time not worked
GENERAL CONTACTORS
clean up and repair
THE
OF
AMERICA
adverse publicity
third-party liability claims against
RESPONSIBILITY
the contractor
equipment/property repair/
replacement.
Suppose an employee falls from a
defective ladder. The employer's costs
could be:
$7,500 workers' compensation
payment;
ASSOCIATED GENERAL CONTRACTORS OF AMERICA
AGC'S NEW BASIC
"AGC Guide for a Basic Company Safety Program" is the place to start in creating or
SAFETY PROGRAM
improving your company safety program. Order publication No. 140 from AGC at (202)
Should your company need as-
393-2040.
sistance in establishing or upgrading
its safety program, consult the "AGC
Guide for a Basic Company Safety
$8,500 in production loss;
premium is higher than that of a com-
Program," available from AGC's
$4,000 to replace the injured
petitor, chances are good their bid will
Publication Department at (202)
employee for a few weeks;
be lower than yours. Many owners now
393-2040. (Order publication No. 140,
$2,600 workers' compensation
ask to see contractors' documented safe-
$20 for members.)
premium increase;
ty programs and past safety records up
The 39-page guide will assist con-
$1,000 additional overhead costs;
front. The owners know that workers'
tractors of all sizes in establishing and
$ 250 in foreman's wages for
compensation costs will be added to the
implementing sound safety programs.
work connected with an accident;
total cost of the bid and often they will
AGC also has a continuously grow-
$1,000 OSHA fines.
not accept bids from contractors without
ing library of safety and health video
The total cost of the accident would be
established safety programs and good
tapes, including "Safety: The Bottom
$24,850. Workers' compensation in-
safety histories.
Line," which shows how safety and
surance would pay $7,500, but the re-
It makes good business sense for com-
construction can be profitable to con-
maining $17,350 in indirect costs would
panies to establish and implement sound
struction contractors by discussing
be paid for out of the contractor's
safety programs. Doing SO can reduce
Experience Modification Rates
pocket.
already outrageous workers' compensa-
(EMR) and indirect costs associated
Let's consider competitive bidding.
tion premiums, eliminate unnecessary
with jobsite accidents.
Among contractors' costs for materials,
out-of-pocket costs, and make the com-
For a complete catalog of AGC's
equipment, and labor is the workers'
pany more competitive in the bidding
Safety Publications and Videos, see
compensation premium. While consider-
process.
the January 1991 issue of CON-
ing the dollar amount to bid on a project,
STRUCTOR, pages 30 through 34.
that premium is calculated into the total
costs of completing the job. If your
-By Pete Chaney, AGC's Safety Services
CONSTRUCTOR/April 1991
41
CONSTRUCTOR
BOH BROS.
CONSTRUCTION
CO., INC.
SINCE 1909
BUILDING THE GULF SOUTH
These New Orleans duplexes, still standing today, were built to fulfill Arthur P. Boh's first contract in 1909. With his brother Henry
he went on to build a $150 million business.
BOH BROS.
CONSTRUCTION CO.,
INC.
of the 1930s, when "survival" was the
found that its skills and knowledge were
key word.
n 1909, when Arthur P. Boh
more than adequate to the task. It was
undertook his first "construction proj-
Boh Bros. established itself as the top
also at this time that Henry Boh brought
ect," the building of four duplexes in a
underground firm during this period and
in others who would be key individuals
New Orleans neighborhood, little did he
also developed the pile-driving skills
in the growth that followed, principally
needed for the unstable soils of Loui-
realize he was starting an enterprise that
B. C. Stewart and J. A. Tedford, who
would grow in the following eight dec-
siana. This knowledge and expertise
headed the company's heavy and
ades into one of the south's largest and
enabled the firm to become the leading
underground operations, respectively. It
pile-driving contractor in the area.
most diversified construction companies.
was B.C. Stewart who was SO commit-
In those early days, the hands-on at-
Even after his brother Henry joined him
ted to quality work that he once directed
in 1913, the "company" barely eked out
titude of Henry Boh was exemplified by
his superintendent to "tear it out and do
his constant refrain, "I never asked a
an existence on small drainage and
it right" even after the work had been
sewage projects.
man to do a job I couldn't do myself."
approved by the inspector. He continues
This attitude helped the company survive
as vice chairman and senior consultant
THE EARLY YEARS
the dark days of the 1930s, grow slowly
after more than 50 years with the
during World War II, and rapidly
When Henry Boh returned from serv-
company.
afterwards.
ing in the Army in World War I, the Boh
Despite its early self-imposed limita-
And as the opportunities grew-first
brothers were able to continue their
tions to southeast Louisiana, Boh Bros.
for war-related facilities and later for
modest progress through the 1920s and
progressed rapidly during the 1950s and
utilities, subdivisions, power plant foun-
to hang on through the depression days
1960s as the country rebuilt itself in the
dations, and overpasses-the company
aftermath of depression and war. In-
(continued)
CONSTRUCTOR/April 1991
43
Founders Arthur Boh (seated) and Henry
Boh.
frastructure, industrial projects, and then
the interstate highway program offered
great challenges and opportunities, to
which Boh Bros., by virtue of its people
and its skills, was qualified to accept.
1960: INCORPORATION
The next major change for the com-
pany occurred in 1960, when the part-
nership was converted into a corporation
with key employees, as well as the Boh
family, as shareholders. This laid the
base for a stable, continuing enterprise,
which served well for an organization that
in 1991 celebrates the 82nd anniversary
of its founding.
Robert H. Boh, Henry's only child,
joined the firm in 1955 after obtaining
engineering degrees from Tulane Uni-
versity and serving a brief stint on the
Tulane civil engineering faculty. He
became a vice president of the new cor-
poration in 1960 and was made president
and CEO in 1967. He also became chair-
man in 1986, succeeding his father.
Today Boh Bros. has expanded its
For more than half a century, Boh Bros. has been the leading pile driver in Louisiana.
horizon to include Texas to the west and
Shown here is a 1942 jobsite with steam-driven pile hammer.
Mississippi, Alabama, and Florida to the
east, with permanent offices in Baton
Rouge and Mobile.
The company contracts several hun-
dred projects per year, some for a few
thousand dollars and others of many
millions; annual volume is in excess of
$150 million. Its scope of work includes
industrial and commercial projects,
asphalt and concrete paving, mechanical
and industrial piping, marine construction
and dock work, bridges, highway-heavy
construction, excavation and site de-
velopment, and railroads.
PRINCIPAL PROJECTS
Principal projects now underway in-
clude the $43 million I-310 interchange
west of New Orleans and two $35 million
projects on the west bank of the
Mississippi River, one at the toll plaza en-
trance to the Greater New Orleans
Mississippi River Bridge No. 2 and the
other on the West Bank Expressway.
The company has also just completed
The McElroy Pump Station in Baton Rouge, completed in 1991.
a tunnel under the east-west runway ex-
tension at the New Orleans International
Airport and is currently working on wharf
44
April 1991/CONSTRUCTOR
Boh is currently building two $35 million projects on the west bank of the Mississippi River. Shown here is the West Bank Approach
to Greater New Orleans Mississippi River Bridge No. 2.
expansions in Texas for the Port of Cor-
degrees in engineering and business-
pus Christi and the Houston Port
serving as vital members of the team.
KEYS TO SUCCESS
Authority.
Boh Bros. is counting on their youthful
"My uncle and my father never
Boh Bros. early established a position
energy and creativity, combined with the
wrote this down, but this is our cor-
of leadership and innovation in marine
firm's veteran construction talent, to lead
porate philosophy," says Robert H.
construction and has pioneered use of
the contractor into a new century of
Boh: "Provide a quality product and
specialized equipment for offshore pile-
growth and prosperity.
deliver good work, performed on
driving and wharf and dock construction.
Arthur Boh died in 1973 at age 89 and
time, for the agreed-upon price.
The company has also performed many
Henry Boh in 1987 at age 93. Both were
"That's how they functioned,' he
major water intake and outfall structure
involved in their company until their last
says of the founders, "and I grew up
projects, including related cofferdam
few years. They were proud of their
believing that's the right thing to do.
work.
legacy, these Boh brothers, and the Boh
"If you hire the best people and
Like most successful companies, Boh
people who follow are working hard to
earn their respect and dedication, you
Bros. attributes its success to its peo-
justify the heritage of their founders.
naturally accumulate valuable ex-
ple and the accumulated skills and exper-
perience and teamwork. That adds up
tise of thousands of man-years of serv-
AGC AND BOH:
to greater productivity, which is bet-
ice. Additionally, the company has been
A 45-YEAR PARTNERSHIP
ter for the customer and better for
able to maintain a strong financial base
Robert H. Boh served as chairman
you."
and to acquire and operate a fleet of
of the national Heavy Industrial Divi-
modern, well-maintained equipment. The
sion in 1985 and chairman of the Col-
company was also one of the first in the
lective Bargaining Committee in
area to fully computerize its payroll and
1987-1990. In the past 22 years he
cost accounting systems; it now operates
has served non-stop on a number of
an IBM mainframe and multiple mini-
committees, including the Executive
computer work stations and PCs and
Committee, and was recently elected
serves as a regional representative for
to the board of the AGC Education
IBM.
and Research Foundation.
A major measure of the company's
He served as president of the New
stability is the fact that one-third of its
Orleans Chapter in 1972 and presi-
ROBERT H. BOH
more than 1200 employees have been
dent of the AGC of Louisiana in 1980
Robert H. Boh, 60, the president
with the firm 10 years or more, with
and continues to serve on the Loui-
and chairman of the board of Boh
dozens in the 25-year and higher
siana AGC Inc.'s board of directors.
Bros., is the first trained engineer in
category.
"We get more than our money's
the family. He received a bachelor's
Boh Bros.' philosophy is summed up
worth from AGC," says Boh. "It
degree and master's degree from
by Robert Boh, who notes that the key
multiplies dramatically the influence
Tulane University in New Orleans,
is "sticking to basics" and emphasizing
any company has before the
where he now serves as chairman of
that users of construction services will
legislatures and regulatory bodies,
the Board of Administrators.
"always have a place for good people
and the instant recognition and
Mr. Boh plans on passing the
who produce high quality work on time
respect AGC membership provides is
leadership of the company on to sons
and in a safe manner."
a great marketing tool.
Robert 32, the operating manager,
The Boh family is well represented in
Other Boh employees are active
and Stephen, 26, the secretary-
the business, with Robert H. Boh's sons,
with AGC, serving on national and
treasurer. Both sons hold MBAs and
Robert S. and Stephen-each holding
state committees.
engineering degrees.
CONSTRUCTOR/April 1991
45
OWNERSHIP
AGC
CONTRACTORS
TRANSFER
SPEAK OUT
percent to key employees only.
More than 60 percent of the
business owners wanted to learn how to
compensate key employees using the in-
centive of future business profits.
About 40 percent would consider
the possibility of selling the business to
outsiders.
There was very little interest in
downsizing or splitting into smaller
business entities to facilitate sale or
transfer.
BASIC COMPANY DATA
About 82 percent of all the
businesses represented at the con-
ference were single-operating com-
panies.
Approximately 18 percent were
either multiple-operating companies or
holding companies with one or more sub-
The photo above is reprinted from the October
sidiaries.
1990 cover of CONSTRUCTOR ("Who
65 percent were regular cor-
Will Fill These Shoes?"), which was devoted
porations.
to the issue of management succes-
wnership Transfer of
35 percent were S corporations,
sion/transfer of ownership in the closely held
the Construction Company, an AGC of
almost all of which had previously been
firm.
America Management Conference, was
C corporations.
Beginning with this issue, AGC is run-
held in Orlando, Fla., on February 10-12,
Annual volume ranged from $1
ning a series of articles to further examine
1991.
million to $50 million. Twenty percent
topics of importance to family-owned firms.
The conference, sponsored annually
were over $20 million and 40 percent
by the AGC Closely Held Business Com-
were under $5 million.
mittee, was attended by 93 construction
company owners, family members, and
CHILDREN IN THE BUSINESS
key employees representing 59 firms in
About 55 percent of the business
28 states.
owners had children currently active in
A new feature this year was the use
the business.
of a short questionnaire to obtain specific
25 percent had young children they
information about the participants. The
hoped to involve eventually; and
information that was obtained from the
20 percent were not going to have
anonymous questionnaires is outlined
children involved.
with the hope that it will be helpful to any
In many cases not all of the owner's
contractor in the development of a com-
children were active in the business,
prehensive business continuity plan.
such as the 39-year-old family member
actively running the day-to-day opera-
BASIC GOALS
tions with three adult siblings who were
About 50 percent of the business
not involved with the business. One of
owners identified their principal goal as
the more important topics was the issue
passing on the construction business as
of "equity" among active and inactive
a going concern to family members.
children.
25 percent were interested in pass-
In about 20 percent of the
ing the business to a combination of fami-
businesses, all of the owner's children
ly members and key employees, and 25
were active, some with even three and
46
April 1991/CONSTRUCTOR
four children involved. The allocation of
BONDING
SPECIAL CASES
power among children and the issue of
Only 10 percent of the participant
There were a number of special cases
selecting a single "boss" were signifi-
businesses did no bonded work.
presented by the survey responses:
cant topics of discussion.
Of those doing bonded work, 5 per-
significant involvement of in-laws or step-
cent do not personally indemnify; and
children; sophisticated corporate struc-
PERSONAL NET WORTH
approximately 15 percent of the
tures and related family partnerships; an
About 80 percent of the business
spouses do not indemnify.
operating company owned equally by six
owners had a personal net worth (in-
cluding the business) of $3.5 million or
less;
AGC CLOSELY HELD FIRMS
17 percent had between $3.5
(BASED ON A SURVEY OF CONTRACTORS WHO
million and $15 million; and
ATTENDED AGC'S SEMINARS ON OWNERSHIP
TRANSFER OF THE CONSTRUCTION COMPANY,
3 percent had in excess of $15
FEBRUARY 1991.)
million. Almost two-thirds of the business
owners did not know the approximate
CORPORATE STRUCTURE
ANNUAL VOLUME
amount of their federal estate tax cost,
which can have a significant impact on the
transition of family business ownership.
BUY-SELL AGREEMENTS
About half of the businesses have ex-
isting buy-sell agreements.
80 percent of those are stock
ALWAYS
$20-$50
S CORPORATION
$10-$20
MILLION
redemption agreements.
4%
CONVERTED
MILLION
20%
TOS
15%
15 percent are cross purchase
c CORPORATION
31%
$1-$5
$5-$10
agreements; and
65%
MILLION
MILLION
5 percent are a combination of the
40%
25%
two.
20 percent of those having buy-sell
agreements have no method in place to
40 percent of the businesses did all
children; and an operating company
provide funds necessary for the buy-out.
bonded work.
owned by three unrelated families, all of
Many business owners were unaware
whom have children in the business.
that where a stock redemption method
Fully 65 percent of the owners had
is used and family members own cor-
not discussed bonding obligations with
the next generation of owners.
SUMMARY
porate stock, the I.R.S. "attribution"
This is an area that needs consistent
The questionnaire results indicate that
rules could cause substantial unnecessary
review in light of surety requirements
many contractors are not far along in
income tax consequences.
and any changes contemplated by the
their business continuity planning. We
contractor for business continuity and
hope that participation in the conference
INSURANCE OWNERSHIP
estate planning purposes.
enabled the participants to move toward
90 percent of the businesses
the development of a comprehensive plan
owned life insurance on the life of the
to implement their personal goals in this
principal business owner.
GIFTING TECHNIQUES
complex area. Many opportunities are
78 percent of the owners owned
Most of the business owners passing
apparently being lost by not taking full ad-
personal life insurance. There was some
the business to family members are not
vantage of present tax law.
evidence that the owners are using third-
currently using gift techniques.
party ownership of life insurance to
Only 9 percent had used any part
-By Doug McPherson and Jeff Radowich.
minimize federal estate taxes.
of the Unified Credit of $600,000 or filed
McPherson is president of McPherson Enterprises
Ltd., Towson, Md., a financial consultant to construc-
12 percent of the owners had ir-
a gift tax return.
tion companies; Radowich is a partner in the
revocable life insurance trusts.
About 16 percent had a systematic
Baltimore office of the law firm Ober, Kaler, Grimes
Other owners reported that relatives,
gift program in place using the $10,000
and Shriver. He specializes in continuity planning.
children, or key employees owned life in-
annual exclusion. One such program had
McPherson and Radowich were two of the speakers
at the Ownership Transfer conference and authored
surance on their lives, some using the
been in effect for 20 years and a second
the questionnaire discussed in this article.
corporation to finance the purchase
for 10 years.
under split dollar arrangements. In
The potential value of using creative
general, the results indicated that not
gift techniques was emphasized at the
many business owners are using the ir-
conference, since it would appear that
revocable life insurance trust, which is
many opportunities are being missed to
an excellent way to insulate assets from
minimize federal transfer taxes while
estate taxation.
passing the business to family members.
CONSTRUCTOR/April 1991
47
AGC'S 1991
EXECUTIVE COMMITTEE
Each of the following Executive Commit-
crete Pavement, Water & Wastewater
Municipal-Utilities, Heavy, Building, and
tee members also serves on the Finance
Equipment Manufacturers Association-
Highway construction.
Committee.
AGC, and Mississippi Valley Region of
Firm has been an AGC member since
the American Association of State
1957.
MARVIN M. BLACK
Highway and Transportation Officials-
American Road and Transportation
Chairman of the Board
Builders Association-AGC committees.
LAWRENCE J.
MCGOUGH
Marvin M. Black Co.,
Also as a committee member on AGC's
Atlanta, Georgia
Chapter Certification, Concrete Industry
President
Relations, Contract Documents Coordi-
President, AGC of
nating, Construction Education, Ethics,
McGough Construction Co.
America, 1991;
Infrastructure Coordinating, Member-
Inc.,
Chairman of the
ship Administrative, Open Shop, Public
St. Paul, Minnesota
AGC Building Division-1986 (Vice
Relations, Rules, Special Preference
Chairman-1985)
Procurement, Subcontractor Relations,
Treasurer, AGC of
As AGC's national president, Mr. Black
Transportation Policy, and American Con-
America-1991;
Chairman of the
sulting Engineers Council-AGC committees.
AGC Building Division-1984 (Vice
is an ex-officio member of all AGC com-
Chairman-1983)
mittees.
President of the AGC of Iowa in 1967.
As AGC's national treasurer, Mr.
Has served AGC as chairman of the
Primary construction market-Highway
McGough is an ex-officio member of all
Rules, Special Contracting Methods,
construction.
AGC committees.
Subcontractor Relations, and American
Firm has been an AGC member since
Has served AGC as chairman of the
Subcontractors Association-Associated
1957.
Housing & Urban Development, NAHB-
Specialty Contractors-AGC committees.
BYRON L. FARRELL
AGC Joint, Special Contracting Methods,
Also as a committee member on AGC's
and AIA-AGC Coordinating committees.
Open Shop, Construction Marketing, Na-
President
Also as a committee member on AGC's
tional Association of Women in
Helmkamp Construction
Construction-AGC, Chapter Certifica-
Turnkey, Surety Association of America,
Co.,
Contract Documents, Public Relations,
tion, American Concrete Institute-AGC,
Wood River, Illinois
Ethics, Rules, Special Preference Pro-
Public Relations, Membership Adminis-
curement, AIA Documents Review,
trative, Contract Documents Coordinat-
Vice President,
Federal Building Procedures, AIA-AGC
ing, Special Preference Procurement,
AGC of America-
Liaison, and Project Delivery Systems
Membership Development, Ethics, and
1991; Chairman of the AGC
committees.
Corps of Engineers committees.
Municipal-Utilities Division-1987
President of the Georgia Branch in 1973.
(Vice Chairman-1986)
President of the AGC of Minnesota in
1983.
Primary construction market-Building
As AGC's national vice president, Mr.
construction.
Farrell is an ex-officio member of all AGC
Primary construction market-Building
construction.
Firm has been an AGC member since
committees.
Has served AGC as chairman of the In-
Firm has been an AGC member since
1964.
frastructure Coordinating and Minority
1932.
Business Advisory committees, and as
ROBINS H.
co-chairman of the American Consulting
JACKSON
ROBERT F.
Engineers Council-AGC Joint Com-
LATHLAEN
mittee.
Chairman of the Board
Also as a committee member on AGC's
Cedar Valley Corp.,
President
Waterloo, lowa
Open Shop, Municipal-Utilities Coor-
W.J. Barney Corporation,
dinating, Equal Opportunity, Hazardous
New York, New York
Senior Vice Presi-
Waste, National Association of Women
dent, AGC of
in Construction-AGC, Special Preference
Chairman of the
Chairman of the
Procurement, Public Relations, Contract
America-1991;
AGC Building Divi-
AGC Highway Division-1987 (Vice
Documents, Chapter Certification, Mem-
sion-1991 (Vice Chairman-1990)
Chairman-1986)
bership Administrative, Legislative,
Ethics, and Subcontractor Relations
Has served AGC as chairman of the Con-
As AGC's national senior vice president,
committees.
tract Documents, Construction Manage-
Mr. Jackson is an ex-officio member of all
President of the Southern Illinois
ment, Special Contracting Methods, and
AGC committees.
Builders Association in 1979 and 1980.
American Institute of Architects-AGC
Has served AGC as chairman of the Con-
Documents Group committees.
Primary construction markets-
48
April 1991/CONSTRUCTOR
Also as a committee member on AGC's
Utilities Coordinating Committee.
Association-AGC and the NASHTO
Building Specifications, Equal Opportuni-
Also as a committee member on AGC's
region of the AASHTO-ARTBA-AGC
ty, Federal Building Procedures, Minori-
Collective Bargaining, Construction
Joint committees.
ty Business Advisory, Joint Engineering
Marketing, Infrastructure Coordinating,
Also as a committee member on AGC's
Societies, Membership Administrative,
International Construction, Manpower &
Highway Bridge, Industrial/Process Con-
Project Delivery Systems, Public Rela-
Training, Open Shop, Special Preference
tractors, Open Shop, Special Preference
tions, AIA-AGC Liaison, AIA-AGC Co-
Procurement, Water Resources, Mem-
Procurement, Transportation Policy,
ordinating, and ACEC-AGC Joint
bership Administrative, Public Relations,
Membership Administrative, Public Rela-
committees.
Finance, Ethics, Rules, Real Estate Pri-
tions, and American Consulting
President of the New York State Building
vatization Task Force, and American
Engineers Council-AGC committees.
Chapter, AGC in 1975 and 1976.
Consulting Engineers Council-AGC com-
President of the AGC of Maine Inc. in
Primary construction market-Building
mittees.
1991.
construction.
President of the AGC Arizona Building
Chapter in 1970.
Primary construction markets-Highway
Firm has been an AGC member since
and Heavy construction.
1934.
Primary construction markets-Heavy-
Firm has been an AGC member since
Industrial, Building, and Highway con-
1951.
J. HOWARD MOCK
struction.
Firm has been an AGC member since
PETER K. W. WERT
Chairman of the Board
1934.
Jaynes Corp.,
Vice President
Albuquerque, New Mexico
Haskell
Vice Chairman of
HAROLD KVAAS
Lemon Construction Co.,
the AGC Building
Oklahoma City,
President
Oklahoma
Division-1991
Kvaas Construction Co.
Serves AGC as western regional deputy
Inc.,
Vice Chairman of
chairman of the Collective Bargaining
Committee.
San Diego, California
the AGC Highway Division-1991
Has served AGC as chairman of the
Has served AGC as chairman of the Con-
Vice Chairman of
Asphalt Pavement Committee.
struction Marketing Committee.
the AGC Heavy-
Also as a committee member on the
Also as a committee member on AGC's
Industrial Division-1991
WASHTO region of the American Assoc-
Closely Held Business, Collective Bar-
Has served AGC as chairman of the
iation of State Highway and Transporta-
gaining, Basic Trades, Building Codes &
Naval Facilities Engineering Command
tion Officials-American Road and Trans-
Permits, Project Delivery Systems, and
Committee.
portation Builders Association-AGC and
Public Relations committees.
Also as a committee member on AGC's
Transportation Policy committees.
President of the New Mexico Building
Contract Forms & Specifications and
President of the Association of Oklahoma
Branch in 1986.
Building Specifications committees.
General Contractors in 1978.
Primary construction market-Building
President of the San Diego Chapter in
Primary construction markets-Highway
construction.
1971.
and Municipal-Utilities construction.
Firm has been an AGC member since
Primary construction markets-Heavy-
Firm has been an AGC member since
1969.
Industrial and Building construction.
1950.
Firm has been an AGC member since
GENE SHULL
1949.
ROBERT S. SUNDT
ROBERT J.
President and Owner
DESJARDINS
A.E. Shull and Co.,
President
Tyler, Texas
Sundt Corp.,
Executive Vice President
Tucson, Arizona
and Treasurer
Chairman of the
Chairman of the
Cianbro Corporation,
AGC Municipal-
Pittsfield, Maine
Utilities Division-
AGC Heavy-Indus-
1991 (Vice Chairman-1990)
trial Division-1991
Chairman of the
(Vice Chairman-1990)
Has served AGC as chairman of the
AGC Highway Division-1991 (Vice
Municipal-Utilities Coordinating Com-
Has served AGC as chairman of the
Chairman-1990)
mittee.
Corps of Engineers Committee, Wet-
Has served AGC as co-chairman of the
lands Task Force, regional chairman of
Also as a committee member on AGC's
the Collective Bargaining Committee,
American Association of State Highway
Closely Held Business, Infrastructure
and Transportation Officials-American
and regional coordinator of the Municipal-
Coordinating, Membership Develop-
Road and Transportation Builders
ment, Special Preference Procurement,
(continued)
CONSTRUCTOR/April 1991
49
EXECUTIVE COMMITTEE (continued)
Membership Administrative, Open Shop,
Chapter Certification, Closely Held Busi-
TIM WORD
Public Relations, ACEC-AGC Joint, and
ness, Construction by Contract, Con-
American Water Works Association-
struction Education, Contract Docu-
Managing Partner
AGC committees.
ments, Ethics, Finance, Goals, Long
Dean Word Co.,
President of the AGC of Texas-
Range Planning, Membership Admin-
New Braunfels, Texas
Highway, Heavy, Utilities and Industrial
istrative, Membership Development,
Branch in 1990.
Rules, Safety and Health, Special Con-
Chairman of the
tracting Methods, Subcontractor Rela-
AGC Highway
Primary construction market-Municipal-
tions, Surety Bonding, Basic Trades,
Division-1988
Utilities construction.
Project Delivery Systems, AIA-AGC
(Vice Chairman-1987)
Firm has been an AGC member since
Coordinating, CCA-AGC Joint, and Sure-
Serves AGC as chairman of the Open
1975.
ty Association of America-AGC Joint
Shop Committee.
committees.
ROBERT A.
Has served AGC as chairman of the
President of the AGC of Massachusetts
MARTIN
Asphalt Pavement and co-chairman of the
Inc. in 1971 and 1972.
American Association of State Highway
President
Primary construction market-Building
and Transportation Officials-American
F.H. Martin
construction.
Road and Transportation Builders
Construction Co.,
Firm has been an AGC member since
Association-AGC Joint and WASHTO
St. Clair Shores, Michigan
1953.
region of the AASHTO-ARTBA-AGC
Joint committees.
Vice Chairman of
Also as a committee member on AGC's
JAMES W.
the AGC Municipal-Utilities Divi-
Transportation Policy, Ethics, Infrastruc-
SUPICA SR.
sion-1991
ture Coordinating, Membership Ad-
Has served AGC as chairman of the Joint
ministrative, Public Relations, Rules,
President
Engineering Societies Committee, Mich-
Special Preference Procurement, ACEC-
United Construction Co.
AGC Joint, and Water Resources com-
igan State Chairman of AGC's Legis-
Inc.,
mittees.
lative Network, and as chairman of the
Lenexa, Kansas
task force for review of ASCE's "Quality
President of the AGC of Texas-Highway,
in the Constructed Project."
President, AGC
Heavy, Utilities and Industrial Branch in
Also as a committee member on AGC's
of America-1988, Chairman of the
1979.
Industry Advancement Program, Con-
AGC Highway Division-1985
Primary construction market-Highway
tract Documents, Collective Bargaining,
(Vice Chairman-1984)
construction.
Municipal-Utilities Coordinating, and
Serves AGC as chairman of the
Firm has been an AGC member since
American Consulting Engineers Council-
Legislative Action, Political Action, and
1932.
AGC Joint committees.
Defense Construction Policy com-
President of the Detroit Chapter in 1974.
mittees.
PAUL EMERICK
Primary construction markets-Building
Has served AGC as chairman of the
Chairman Emeritus
and Municipal-Utilities construction.
Finance, Pension, Infrastructure Coor-
Emerick Construction Co.,
Firm has been an AGC member since
dinating, Crime Prevention, Mississippi
Portland, Oregon
1920.
Valley Region of the American Associa-
tion of State Highway and Transportation
President, AGC of
FRANCIS W.
Officials-American Road and Transpor-
America-1989;
MADIGAN JR.
tation Builders Association-AGC Joint,
Chairman of the
and Canadian Construction Association-
Building Division-1983 (Vice
President
AGC Joint committees.
Chairman-1982)
F.W. Madigan Co. Inc.,
Also as a committee member on AGC's
Has served AGC as chairman of the
Worcester, Massachusetts
Open Shop, Transportation Policy,
Asphalt Pavement, Ethics, Membership
Manpower & Training, Contract
Chairman of the
Administrative, Special Preference Pro-
Documents Coordinating, Finance, and
Pension committees.
AGC Building Divi-
curement, Finance, Rules, Corps of
sion-1987 (Vice Chairman-1986)
Engineers, Defense Construction Policy,
Also as a committee member on AGC's
Serves AGC as chairman of the Collec-
and Minority Business committees.
American Institute of Architects Liaison,
tive Bargaining Committee and as a
President of the AGC of Missouri in 1978
Building Specifications, Construction
director on AGC's Education and Re-
and of the Kansas Contractors Associa-
Education, Labor, Collective Bargaining,
tion Inc. in 1984.
Equal Opportunity, American Institute of
search Foundation Board of Directors.
Architects-AGC Documents Review,
Has served AGC as chairman of the
Primary construction market-Highway
Public Relations, Ethics, Legislative Ac-
Research and American Institute of Ar-
and Heavy construction.
tion, Rules, Subcontractor Relations, In-
chitects Documents Review committees.
Firm has been an AGC member since
frastructure Coordinating, Chapter
Also as a committee member on AGC's
1971.
Certification, Federal Committee on Ap-
50
April 1991/CONSTRUCTOR
prenticeship, and Canadian Construction
Also as a committee member on AGC's
and Rules committees and the AGC
Association-AGC committees.
Membership Development, Municipal-
Education and Research Foundation
President of the Oregon-Columbia
Utilities Coordinating, Water Resources,
Board of Directors.
Chapter in 1972.
Membership Administrative, Public Rela-
President of the Seattle Chapter in 1979.
tions, Special Preference Procurement,
Primary construction market-Building
construction.
Ethics, Rules, Joint Engineering
Primary construction markets-
Societies, ACEC-AGC Joint, APWA-
Municipal-Utilities construction.
Firm has been an AGC member since
AGC Joint, and WWEMA-ACEC-AGC
Firm has been an AGC member since
1956.
Joint committees.
1954.
President of Carolinas AGC Inc. in 1987.
KIRK FORDICE
DAVID A.
Primary construction markets-
MCCOSKER
President
Municipal-Utilities, Building, Heavy,
Fordice Construction Co.,
Bridges, and Marine construction.
President
Vicksburg, Mississippi
Firm has been an AGC member since
Independent Construction
1933.
Co.,
President, AGC of
Concord, California
America-1990;
T.R. BENNING JR.
Chairman of the
Chairman of the
AGC Heavy-Industrial Division-1975
Chairman of the Board
AGC Highway
(Vice Chairman-1974)
Benning Construction Co.,
Division-1986
(Vice Chairman-
Serves AGC as chairman of the Pension
Atlanta, Georgia
1985)
and Finance committees.
Has served AGC as chairman of the Con-
Has served AGC as chairman of the
Has served AGC as
tract Construction committee.
chairman of the
Corps of Engineers Task Unit of the
Construction Educa-
Also as a committee member on the
Contract Forms and Specifications,
tion Committee.
American Public Works Association-AGC
Corps of Engineers, Safety and Health,
Canadian Construction Association-AGC
Also as a committee member on the AIA-
Joint, Hazardous Waste, WASHTO
region of the American Association of
Joint and AIA/AGC Liaison committees.
AGC Documents Review, Manpower &
Also as a committee member on AGC's
Training, and Rules committees and the
State Highway and Transportation
Officials-American Road and Transpor-
Construction Markets, Construction Edu-
AGC Education and Research Founda-
tion Board of Directors.
tation Builders Association-AGC Joint,
cation, American Society for Engineer-
Contract Documents, Membership Ad-
ing Education-AGC, Goals and Objec-
President of the Georgia Branch in 1971.
ministrative, Special Preference Pro-
tives, Rules, Ethics, Open Shop, Col-
Primary construction market-Building
curement, Chapter Certification, Public
lective Bargaining, Construction by Con-
construction.
Relations, Ethics, Rules, Infrastructure
tract, Legislative, Hazardous Waste,
Firm has been an AGC member since
Coordinating, and Transportation Policy
AGC PAC, Chapter Certification, and
1954.
committees.
Contract Documents Coordinating com-
President of AGC of California Inc. in
mittees.
TERRY DEENY
1980.
President of the Mississippi Valley Flood
Primary construction markets-Highway
Control Branch in 1970.
President
and Heavy construction.
Primary construction market-Heavy-
Deeny Construction Co.
Firm has been an AGC member since
Industrial construction.
Inc.,
1936.
Firm has been an AGC member since
Seattle, Washington
1949.
Chairman of the
AGC Municipal-
SAMUEL P. HUNTER
Utilities Division-1986 (Vice Chair-
man-1985)
Serves AGC as chairman of the Ethics
GENERAL
President
T.A. Loving Co.,
Committee.
Goldsboro, North Carolina
Has served AGC as chairman of the
THE
CONTRACTORS
Municipal-Utilities Coordinating and
OF
Chairman of the
Membership Administrative committees.
AMERICA
SKILL
RESPONSIBILITY
INTEGRITY
AGC Municipal-
Also as a committee member on the Col-
Utilities Division-
1990 (Vice Chairman-1989)
lective Bargaining, Basic Trades, Chap-
ter Certification, Contract Documents,
Has served AGC as chairman of the
Public Relations, Special Preference Pro-
American Water Works Association-
curement, Subcontractor Relations, In-
AGC Joint Committee.
frastructure Coordinating, Legislative,
CONSTRUCTOR/April 1991
51
THE
102ND CONGRESS
The 102nd Congress is off and run-
opportunity to obtain additional funding
tors performing Superfund clean up work.
ning. The rapid end of the Middle East
for the State Revolving Loan program,
Following on the success of the last Con-
War has meant that members of the
this legislation presents an opportunity
gress to increase the availability of surety
House and Senate are turning once again
to address the Section 404 and wetlands
bond producers on Superfund work,
to the domestic legislative agenda. It
issues. With Small Business Committee
AGC continues to educate members on
promises to be a full agenda with many
Chairman John LaFalce already holding
the constraints that the lack of adequate
opportunities for controversy and many
hearings on the impact of the current
indemnification for contractors places on
challenges and opportunities.
wetlands regulations on small business,
the ability to develop a strong, com-
Civil Rights Act of 1991. Introduced in
it increases the opportunity for suc-
petitive market for this work. AGC will
the House as H.R. 1, the bill contains no
cessful efforts in obtaining relief.
look for an opportunity to advance an in-
provisions addressing business and in-
Striker replacement. This is the lead
demnification proposal.
dustry concerns about unlimited punitive
labor-management issue now being pur-
Pension simplification. Legislation to
and compensatory damages nor does it
sued by labor. The House and Senate
achieve this goal is being introduced again
address the definition of "business
bills have been introduced (H.R. 5/S. 55),
in this Congress. Areas to be addressed
necessity" in such a way as to eliminate
and business is currently working to slow
include: minimum participation require-
the quota-forcing aspects of the bill.
down the number of members signing on
ments; definition of highly compensated
Sen. Alan K. Simpson (R.-Wyo.) in-
as co-sponsors. This legislation would
employee; and definition of leased
troduced S. 478, which is a narrowly
prohibit employers from hiring perma-
employee.
drafted civil rights bill allowing some
nent replacements during an economic
Family leave bill. This legislation, which
damages for deliberate harassment, re-
strike. It also would greatly increase the
passed last year but was successfully
jecting jury trials, and attempting to fix
ability of labor to organize non-union
vetoed by President Bush, has again
the business necessity definition to make
firms through the practice of "salting"
been introduced. Several other proposals
it more responsive to business concerns.
the workforce.
are expected to appear, including a ma-
The Administration's bill was intro-
Construction Safety and Health OSHA
jor initiative by Sen. Orrin G. Hatch
duced in March, also addressing "busi-
reform. This issue has reappeared for the
(R.-Utah). The main point of contention
ness necessity" and providing for limited
third Congress. Debate continues to
in the various bills remains that the im-
monetary awards.
focus on the various concerns that have
plementation of provisions is mandated,
The bill is on a fast track in the House.
been addressed over the last couple of
allowing no flexibility in the development
Surface Transportation Assistance Act
years. The challenge will be to keep ad-
of benefits and limiting the choices an
reauthorization. The Administration has
ditional paperwork requirements and
employer will have in allocating limited
unveiled its bill and House and Senate
other burdensome provisions such as the
resources for benefits.
public works staff are beginning discus-
requirement for construction safety spe-
Federal product liability reform (workers'
sions and some early drafting work on
cialists out of any legislation that may be
compensation). In the 101st Congress a
reauthorization bills. Whether to enact a
passed. If such legislation does advance,
product liability reform bill was intro-
multi-year bill, changes in programs,
it provides an opportunity for the in-
duced and it is expected that a similar
changes in formulas, and transfer of
dustry to enact provisions on employee
measure will be introduced this Con-
funds between different modes will all be
accountability and drug testing.
gress. The legislation, as introduced last
addressed. It is not expected that the
Legislation has also been reintroduced
year, would have had a devastating ef-
Administration bill will propose any
to establish a new class of criminal
fect on the nation's already weakened
changes to the current DBE require-
penalties for safety and health violations.
workers' compensation system. The
ment. A challenge will be to keep the
Competition in contracting. AGC is again
legislation would have reduced product
House in particular from expanding the
attempting to educate members of Con-
liability claims by the amount of workers'
requirement or splitting the set-aside into
gress and staff on the preferred procure-
compensation a claimant received and
a minority requirement and a separate
ment method for the construction in-
would have effectively eliminated the
women's requirement. This legislation
dustry on work financed by tax dollars-
rights of subrogation by the employee or
presents the industry with the opportun-
competitive sealed bid. This effort is
its insurance carrier against the manufac-
ity to increase funding levels for federal
underway to counter the increasing use
turers. The challenge to the industry is
of competitive negotiation by various
to ensure that product liability reform
transportation programs.
Water Quality Act reauthorization. In ad-
agencies.
does not further weaken the workers'
dition to providing the industry with an
Indemnification for construction contrac-
compensation system.
52
April 1991/CONSTRUCTOR
CONSTRUCTOR
LEGAL MATTERS
COURT UPHOLDS
solve disputes over work within the
TERMS OF PRIME CONTRACT
general scope of the contract, subject to
An electrical subcontractor was bound
limited judicial review."
by the dispute resolution procedure con-
The question was whether the direc-
tained in the prime contract. Until that
tives to perform the fire line bonding
procedure was exhausted, the subcon-
work were dependent, in whole or in
tractor had no right to institute alternate
part, on the scope of work in the prime
proceedings against the general contrac-
contract, which was incorporated into the
tor, SO held the United States Court of
subcontracts. If the answer was yes, the
Appeals.
contractural dispute resolution pro-
The general contractor (McGaughan)
cedures would govern, and the right of
had a contract with the Washington
a separate action against the general con-
Metropolitan Area Transit Authority
tractor was precluded.
(WMATA) to perform finishing work at
The court determined that Seal failed
a station. McGaughan issued subcon-
to establish that the administrative
tracts for the electrical work (Seal) and
remedies it agreed to follow were inade-
the mechanical work (Kirlin).
quate or unavailable. In like fashion,
The general provisions of the two sub-
Kirlin was bound by the same procedure.
contracts were identical and stated that
The court concluded that the lower court
if there were changes issued by the
was in error in permitting Seal to file its
owner, the subcontractor would be
claim directly against McGaughan and in
bound by the decision of the owner, as
dismissing McGaughan's third-party
the contractor was bound by that deci-
The electrical subcontractor agreed to
complaint against Kirlin.
sion. But if the change was ordered by
perform the work under protest, where-
The court directed "to stay the pro-
the contractor and was "independent of
as the mechanical subcontractor refused
ceedings pending the final outcome of the
owner or contract documents," if the
to undertake the work.
dispute settlement procedures outlined
subcontractor performed the work, it
After the work was performed, Seal
in section 6 of WMATA's General Pro-
was entitled to an equitable adjustment
demanded payment from McGaughan,
visions. If McGaughan prevails in the ad-
without regard to the decision of the
who refused. Seal then filed suit for
ministrative appeal and WMATA's order
owner.
breach of contract. McGaughan said that
to perform the bonding is considered a
Further, if there were disputes be-
Seal's suit was improper since it was
'change order,' then WMATA will pay
tween the contractor and subcontractor,
obligated to follow the resolution pro-
McGaughan for the bonding. McGaughan
as the result of any action or inaction of
cedure specified in the prime contract,
must then reimburse Seal pursuant to
the owner or involving the prime contract
which required McGaughan to submit the
the subcontract. If McGaughan loses the
documents, the subcontractor was again
claim to the WMATA for written deci-
appeal and the bonding is considered part
bound to the contractor as the contrac-
sion. That decision would be reviewable
of the original contract, then the court
tor was bound to the owner. On the
by the board of directors of the WMATA
must determine, this time with the aid
other hand, if the controversy did not in-
or the Army Corps of Engineers Board
of the board's decision, where bonding
volve the owner or the prime contract
of Contract Appeals. Those decisions
is required in the contract documents and
documents, the resolution procedure in
would be subject to limited judicial
which subcontractor is responsible for it
the prime contract did not apply.
review. The lower court disagreed with
or whether both are jointly responsible."
In this case, a dispute arose with
McGaughan and permitted Seal's suit to
Seal & Co., Inc. vs. A.S. McGaughan
regard to the performance and payment
go forward, and dismissed McGaughan's
Co., Inc., 1907 F .2d 450 (4th Cir. 1990).
for fire line bonding. Both the electrical
claim against Kirlin. A decision was
Commentary: It is important to consider
and mechanical subcontractors claimed
rendered in favor of Seal, and an appeal
whether a subcontractor should be bound
that the work was not within their sub-
followed.
by an owner's decision in the same fashion
contracts. The general contractor for-
After reviewing both the prime con-
as the general contractor is when decisions
warded the subcontractors' positions to
tract and the subcontract the court
of the owner relate to the subcontractor's
the WMATA, which replied that the
stated: "In effect, the changes and
work. If so, care must be given in draft-
work was required by the contract
disputes provisions transform potential
ing contract clauses that accomplish this
documents, and referred to a section of
breach of contract claims into claims
result.
the electrical and mechanical specifica-
under the contract. By agreeing to these
tions. The WMATA directed that the
provisions, McGaughan has agreed to re-
-By Michael S. Simon, of Hill, Wallack &
work be performed at no additional cost.
ly on administrative procedures to re-
Masanoff, 210 Carnegie Center, Princeton, N.J.
08543
CONSTRUCTOR/April 1991
53
CONSTRUCTOR
CONSTRUCTION
EDUCATION
IMPROVING PRODUCTIVITY:
many other ways. Some are directly ap-
THE EXECUTIVE'S ROLE
parent; some are not; each carries the
Construction executives must provide
message that the firm cares about how
the initiative, leadership, and enthusiasm
its employees perform on the job:
for productivity improvement efforts.
Operations manual: Establish stan-
Without this support, the best attempts
dard operating procedures for general
are doomed to failure.
field operations-how the firm wants
Incentives. Incentives to improve pro-
things done.
ductivity take many forms. When possi-
Company manual: Maintain an up-
ble, consider promoting top performers
to-date company manual that includes all
to a more responsible position. Such pro-
company policies.
motions need not always be vertical. A
Vacation, sick leave, holidays:
superintendent who performed well can
Have a written policy for everyone.
be promoted to larger, more complex
Ethics: A statement or policy con-
jobs. Bonuses are another form of incen-
cerning company ethical standards has a
tive and are commonly paid by many con-
positive impact on employees.
struction firms. They should be based
Alcohol and drugs: A written policy
upon some measure of performance,
that is enforced indicates top manage-
however. Bonuses paid in equal shares
ment's concern for a safe, healthy, pro-
or percentages to all project managers
ductive workforce.
can act as a disincentive to the top per-
Safety: A safe worksite is essen-
RF
formers. Company stock options are
tial to productivity improvement.
another incentive that tends to improve
(STP) or business-related evening or
Employee reviews: An impartial
performance. As profits improve as a
weekend classes at a local college. Con-
performance review program can im-
result of higher productivity, the value
sider some form of financial assistance or
prove employee performance.
of the stock, or any dividends, will also
reward for successful completion. A
Public and media relations: Com-
tend to increase.
company-paid subscription to a profes-
pany executives should try to cultivate
Other incentives include company
sional journal or industry publication is
a positive view of the firm among the
recognition programs and perks. Ban-
another form of an education-related in-
public and local media.
quets, award ceremonies, certificates of
centive.
All construction firms are different, and
achievement, jackets, calculators, and
Motivational policies. Here are some
the executive programs and policies ex-
numerous other items can be given to
motivational policies discussed in "Pro-
amined in this column are simply some
those who meet or beat production goals,
ductivity Improvement-An Overview,"
examples that may or may not be ap-
contribute great ideas or suggestions, or
AGC publication No. 15:
plicable to your company. However, the
perform exceptionally well in a given
Taped executive introductions for
application of even a few of these ideas
area. Perks include expense-paid trips to
newly hired employees.
should lead to improvement in produc-
seminars, conventions, a hunting lodge,
Job and/or company newsletters
tivity. More information on productivity
or even the gift of a company vehicle.
that inform of job progress and praise
improvement programs will soon be
Education and training. Construction ex-
personal achievement.
available in booklet form as AGC publica-
ecutives should pay special attention to
Company social functions that in-
tion No. 20.
the positive impact education and train-
clude awards and recognition.
Other factors of equal importance to
ing have on employee productivity im-
Providing crew self-analysis
the executive's role in improving the pro-
provement. Sending key personnel to
equipment.
ductivity of the office-field team have
education and training programs pays
Posting or publication of production
been identified by AGC's Construction
double dividends: the employee gains
goals.
Education Committee. They are Produc-
useful knowledge and receives a clear
Incentive bonus systems based
tion Leadership and Motivation (No. 16),
message that the company is concerned
upon project, individual crew, or com-
The Importance of Planning (No. 17),
about skills improvement. Local AGC-
pany profitability.
production measurement and analysis,
sponsored seminars and workshops are
New idea reward programs.
office support of field operations, and
a good bet, and many subjects can be
Company-wide profit sharing
communicating productive spirit.
taught in-house.
programs.
A complete series of publications on
Also encourage employees to take
Miscellaneous policies. Construction ex-
this topic is under development.
continuing education courses such as
ecutives can convey their interest in pro-
AGC's Supervisory Training Program
ductivity improvement to employees in
-By E. W. Jones, AGC's Construction Education
54
April 1991/CONSTRUCTOR
CONSTRUCTOR
NEWSMAKERS
Raymond F. Pieper, president of J.S. Alberici
Chapter. The program recognizes out-
Daniel F. Knise, chairman of Johnson & Hig-
Construction Co. Inc. (AGC) in St.
standing safety efforts of contractors in
gins (AGC National Associate), has been
Louis, Mo., retired recently after 42
commercial, industrial, and institutional
elected senior vice president in the firm's
years of service to the company. He is
building construction in the Philadelphia
Washington, D.C., office. Knise joined
a past president of AGC of St. Louis and
five-county area. L. Charles Marcon, the
the firm in 1985 and was previously
is currently a national AGC director. Ed-
firm's president, accepted the award.
employed as director of human resources
ward L. Calcaterra, executive vice president-
James J. Clearkin, president of James J.
development and risk management for S.
operations and a 36-year veteran of
Clearkin Inc. (AGC) in Philadelphia, has
J. Groves and Sons (AGC). A graduate
Alberici, will assume Pieper's position.
been reelected chapter president.
of Cornell University, Knise was also
Calcaterra is also a past president of
director of collective bargaining for Na-
AGC of St. Louis; a former chairman of
Thomas J. Elgin has joined Essex Builders
tional AGC. With Knise's appointment,
local AGC committees on labor, appren-
Company Inc. (AGC) in Framingham,
Dave Nichols, of the firm's Richmond,
ticeship, and health, welfare, and pen-
Va. office, assumes the deputy chair-
sion; and has served on numerous
Mass., as senior project planner. Elgin,
who brings more than 25 years of design
manship.
national AGC committees.
construction experience to the firm, will
be responsible for sales and promotion
IN MEMORIAM
Jack McKay has been named crane sales
of Essex's pre-engineered metal building
Joseph P. Silvestri, 82, president in 1961
manager (West) for Link-Belt Construc-
division.
of the Northern and Central Califor-
tion Equipment Company in Lexington,
nia Chapter of AGC, died recently in
Ky. He will be in charge of the com-
pany's hydraulic and lattice boom crane
Ebasco Constructors Inc. (AGC), a sub-
Burlingame, Calif. Silvestri chaired
lines in the western United States and
sidiary of Ebasco Services Incorporated,
AGC's Labor Committee in the late
has received the 1990 Outstanding Con-
1950s and also directed an AGC com-
the Canadian provinces of British Colum-
tractor Award from the U.S. Army
mittee that laid the foundation for
bia, Alberta, Saskatchewan, and
Manitoba. McKay was previously
Corps of Engineers, Omaha District
standard specifications programs for
associated with Cloverdale Equipment
(Corps). Ebasco was honored for
highway construction throughout the
Company (AGC National Associate) in
outstanding performance on the interim
United States. A founding member of
Oak Park, Mich.
action of Basin F hazardous waste
the Beavers, Silvestri was a principal
cleanup at the Rocky Mountain Arsenal
in the firm of Charles L. Harney Inc.
in Colorado. At the 93-acre site, Ebasco
James H. Ryan Sr., president of the
The Manville Engineered Products
Group has reorganized its mechanical in-
successfully stabilized and contained toxic
Associated Contractors of New Mex-
materials generated from the production
ico from 1959 to 1961, died Dec. 7.
sulation, air handling, and OEM sales
organization into two units-mechanical
of chemical weapons.
Ryan was an honorary life member of
insulation systems and OEM businesses.
the association and a long-time
Phyllis M. Sharp has been appointed national
The construction and agricultural division
highway contractor. Richard Walberg, 89,
chairman in 1939 of AGC's Central
sales manager of mechanical insulation
of Spectra-Physics (AGC National
Associate) in Dayton, Ohio, recently
California Chapter, died Feb. 3 in San
systems, and Bill Riaksi has been appointed
national sales manager of the OEM
received a Presidential Award for ex-
Francisco. A retired president and
businesses division.
cellence in exporting. Ted L. Teach, vice
chairman of Swinerton & Walberg
president and division manager, accepted
(AGC), he oversaw the firm's expan-
J.R. Filanc Construction Co., formerly
the award from Gordon B. Thomas on
sion into industrial construction and
Weardco Construction Corp. (AGC) in
behalf of President George Bush and
built the first West Coast plants for
Oceanside, Calif., announced that Jack
Secretary of Commerce Robert A.
many top U.S. manufacturing com-
Filanc assumed the duties of chairman of
Mosbacher. Spectra-Physics' worldwide
panies.
the board and Mark Filanc has been named
expansion program led to the establish-
Komatsu Dresser has named David W.
executive vice president. Jack Filanc is
ment of 84 independent distributors in 37
a member of the board of directors of
foreign countries.
Grzelak vice president sales, and Karl Hoshino
AGC's San Diego Chapter.
has been appointed vice president product
marketing. Grzelak, who was previously
David G. Jensen has joined Alexander &
Duggan & Marcon Inc. (AGC National
manager, off-highway vehicles for General
Alexander Inc.'s (AGC National
Associate), in Fogelsville, Pa., recently
Electric Company, will be in charge of
Associate) office in Phoenix, Ariz., as
won the grand honor award in the 1990
KDC's sales department. Hoshino's divi-
surety manager. As a member of A&A's
Safety Achievement Competition con-
sion is responsible for model sales pro-
construction team, Jensen will handle all
ducted by the Philadelphia Builders'
motion, new product introduction,
contractor-related bonding services.
product development, and sales training.
CONSTRUCTOR/April 1991
55
CONSTRUCTOR
REGIONAL
ACTION
AGC OF NEW JERSEY recently awarded
Kinman Limited Inc. (AGC) in Jackson-
Dennis D. Doan, chief executive officer
a $1,500 scholarship to Philip J. Lindsey,
ville, has been elected chapter president
and president of Doan Construction
an engineering student at Temple Uni-
for 1991.
Company (AGC National Associate) in
versity in Philadelphia. Mr. Lindsey is
Ypsilanti, Mich., has been elected vice
employed by CUH2A, a multidisciplinary
Peter H. Benoist, president of Turner
president of the MICHIGAN ROAD
design firm in Princeton. Donald R.
Construction Company/Hercules Divi-
BUILDERS ASSOCIATION INC. He has
Waters, president of AGC of New Jersey
sion (AGC) in Chesterfield, Mo., has
served as chairman of the chapter's
and head of Waters & Bugbee Inc.
been installed as president of AGC OF ST.
membership committee and as a member
(AGC), Trenton contractors, presented
LOUIS. Mr. Benoist is a graduate of
of the Specifications and Construction by
the award to Lindsey.
Regis College in Denver, Colo., and is
Contract committee.
active in local and national AGC affairs.
CAROLINAS AGC INC. has begun a $1
He succeeds William H. Kroeger of
THE ARIZONA CHAPTER elected Darrel
million addition and renovation to its
Kroeger Construction Inc. (AGC) in St.
L. Templeton, executive vice president
Charlotte headquarters with completion
Louis, who will remain on the board of
of Hunter Contracting Co. (AGC) of
scheduled for September. The project
directors.
Gilbert, Ariz., as its 1991 president.
will double the size of the chapter's plan
room, and the largest conference room
AGC OF INDIANA INC. installed Harold
THE NEW YORK STATE CHAPTER INC.
will accommodate 75 people for on-site
Force, president of Force Construction
recently sponsored its second heavy
workshops and seminars. Carmel Con-
Co. Inc. (AGC) in Columbus, as the
equipment spring auction, which was ex-
tractors Inc. (AGC) in Charlotte won the
chapter's new president.
pected to be the largest event of its kind
competitively bid construction contract
ever held in the state. Last year's auc-
for the project.
The GEORGIA INSTITUTE OF TECHNOL-
tion brought in more than $6 million in
OGY in Atlanta is offering a course en-
bids on a variety of construction mater-
The ROCKY MOUNTAIN CENTER FOR
titled "Competent Person Training Pro-
ials, tools, and heavy equipment. More
OCCUPATIONAL AND ENVIRONMENTAL
gram for OSHA's Revised Excavation
than 1,100 registered bidders attended
HEALTH at the University of Utah has an-
Standard." Participants will be instructed
the 1990 event.
nounced upcoming construction industry-
in soil analysis, the use of protective
related courses to be be held in Salt Lake
systems, and the requirements of the
City. They include:
OSHA standard. The one-day program
EMERGENCY PREPAREDNESS
Industrial Audiometric Technician's
is offered on a regular basis in Atlanta and
SYMPOSIUM
Certification Course, May 29-31. This
can also be conducted on-site at the loca-
The Florida East Coast Chapter is
course is intended for occupational health
tion of a company's choice. For more in-
presenting a one-day symposium en-
nurses and physicians, safety profes-
formation, please contact Steve Hays at
titled "PROJECT PREPARED-
sionals, health technicians, and others in-
(404) 894-3806.
NESS: Industry's Role in a Natural
volved in the performance and interpre-
Disaster.' The program will be held
tation of audiometric testing.
THE NORTHEASTERN FLORIDA CHAPTER
on May 1, 1991, at the Royce Hotel
Hazardous Materials for the Pro-
announced the election of Mel Bryan, of
in West Palm Beach, Florida.
fessional, June 24-28, a comprehensive
The Devcon Group Inc. (AGC) in Jack-
Project Preparedness is a program
overview of the field of hazardous
sonville, as chapter president for 1991.
for developing the skill and capabilities
materials. For more information, please
of construction contractors in combat-
call (801) 581-5710.
ting natural or man-made disasters.
The speakers for the program in-
METRIC CONSTRUCTORS INC. (AGC),
clude Thomas P. Credle, FEMA; Dr.
merit-shop contractors in Charlotte,
Robert Sheets, National Hurricane
N.C., were recent winners of the
Center; James Seta, U.S. Army
Business Roundtable's Constructor Safe-
Corps of Engineers; Dr. Ron Cook,
ty Award. The firm was honored for its
University of Florida; Michael Slade,
commendable safety performance during
Ranger Construction Industries Inc.;
the past three years for companies hav-
and Dr. Raymond MacAllister, Florida
ing more than 200,000 man hours per
Atlantic University.
year.
New officers, AGC of Mississippi Inc. Seated
For more information, contact Dan
is Pres. Jim A. Moss, standing from left are
1992 Pres. -elect John H. Nall, V.P. Lake Pen-
Strait at (407) 833-3609.
The ARKANSAS CHAPTER announced
that Tommy Bond, president of Bond-
nington, and Sec.-Treas. C.E. Frazier.
56
April 1991/CONSTRUCTOR
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OFFICES IN MAJOR U.S. CITIES, CANADA AND IN LONDON
CONSTRUCTOR/April 1991
57
CONSTRUCTOR
NEW PRODUCTS
TRUCKTECH INC., Wichita, KS, has
ice are offered, in addition to the use of
ogically refined to provide increased per-
unveiled the Proc, a new tag axle that of-
a remote probe or micro-transmitter for
formance and extended life. Improve-
fers dump truck operators a significant
tracking mon-metallic pipe or PVC.
ments include higher cutting tonnages,
increase in legal payload without sacrific-
McLaughlin was named exclusive U.S.
an increased piercing capability, larger
ing the truck's maneuverability. The
distributor for the product, which is pro-
jaw openings, and an offset blade apex
Proc lengthens the truck's overall wheel
duced by Takachiho Sangyo Co. Ltd. in
to draw material to the area of the shear
base, adds one additional axle, and pro-
Tokyo.
Reader Service #114
where cutting force is the greatest. The
vides a practical and cost-effective altern-
shears can be used for a variety of ap-
ative to truck and trailer units at a time
TOMEN AMERICA INC., Norcross, GA,
plications, including scrap processing,
when dump truck operators are facing in-
has announced plans to market a new line
demolition, reconstruction, tank dismant-
creasingly stringent enforcement of the
of hydraulic excavators in the U.S. under
ling, road reconstruction, and railcar
federal bridge formula. The Proc can be
the proposed name TOMEN-SCM.
dismantling.
Reader Service #116
retrofitted to existing dump trucks.
Manufactured by Sumitomo Construction
Reader Service #113
Machinery Company Ltd. in Tokyo, eight
TALBERT, Rensselaer, IN, has published
models will be offered, ranging in
a special products brochure that includes
McLAUGHLIN MANUFACTURING CO.,
operating weight from 16,000 to 68,000
more than 30 color photos of the com-
Greenville, SC, has added an all new
lbs. The new excavators offer high-tech
pany's engineering achievements such as
micro-computerized cable and pipe
features such as mode selection, service
the first schnabel and the first hydraulic
locator to its line of trenchless boring
monitors, and computer-assisted hy-
suspension and steering trailer. Exotic
systems. The Spot D Tek Utility Loca-
draulics.
Reader Service #115
load photos of a 610-ton atomic reactor,
tion System locates the exact position
transformers, and army tanks are also
and depth of metallic cable or pipe on an
LaBOUNTY MANUFACTURING INC.,
featured.
Reader Service #117
easy-to-read digital display. Four dif-
Two Harbors, MN, has a new line of
ferent methods for locating buried serv-
mobile shears that has been technol-
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Reader Service No. 16
58
April 1991/CONSTRUCTOR
SNORKEL ECONOMY, St. Joseph, MO,
platforms, but in a self-contained, self-
The full-metering hydraulic system per-
announces the new Snorkelift MHP-40,
powered trailer mounted unit. The boom
mits the operator to feather controls and
which provides the reach and work cap-
system offers a working height of 46 ft.
provides smooth, precise command of all
abilities of more expensive truck-
and a horizontal reach of 21 ft. at a height
movements. The MHP-40 can be towed
mounted or self-propelled aerial work
of 21 ft. with a lift capacity of 330 lbs.
by most vehicles. Reader Service #118
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CLAMP-CO
Inc.
Automatic Pipe Grabs & Beam Clamps
Pipe Grabs: Standard units are available from stock for 3"
to 24" steel. cast iron or concrete pipe. Custom Pipe Grabs
for non-standard pipe sizes and for large pipe sizes up to 48"
are available on a factory order basis.
Beam Clamps: Available in 5, 15, 25 and 35 ton models
with standard bases or with recessed bases to accept beams
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CONSTRUCTOR/April 1991
59
Reader Service No. 19
CLASSIFIEDS
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CONSTRUCTION SEMINARS SCHEDULED
The University of Toledo's Division
of Continuing Education will present an
Percentage of Completion Report
intensive two-day "Construction
Certified Payroll & Labor Reports
Claims" seminar, with an accompanying
one-day, follow-up program on "Project
Payroll State/ Local Tax & Union Reporting
Planning and Scheduling."
AIA and Time & Material Billing
Dates and locations for the
Detailed Change Order System
Construction Claims seminar are: May
20-21, Toledo, Ohio; June 5-6, White
Sub-Contract & Purchase Order Control
Plains, N.Y.; June 11-12, Newport
Equipment Costing, Tracking & Maintenance
Beach, Calif.; June 24-25, Orlando, Fla.
Inventory Control
The Project Planning program will be
held on May 22 in Toledo, Ohio; June
Shop Order Entry System w/Invoicing
7 in White Plains, N.Y.; June 13 in
Property Management
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Orlando, Fla.
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follow-up consultation are included.
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April 1991/CONSTRUCTOR
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BOOKS, CODES, AUDIO & VIDEO TAPES
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CONSTRUCTOR/April 1991
61
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62
April 1991/CONSTRUCTOR
GUEST
EDITORIAL:
THE
STRIKE BILL
A DANGEROUS PIECE OF
The
he AFL-CIO's legislative
LEGISLATION WOULD DESTROY
agenda for the 1990s repackages the
goals of failed labor legislation from the
THE BALANCE OF POWER
1970s and the 1980s. The "Strike Bill,"
BETWEEN LABOR
H.R. 5 and S. 55, combines the union-
organizing advantages of the historic
AND MANAGEMENT
"Labor Law Reform" effort with in-
creased union bargaining powers even
more pervasive than the "Anti-Dual
Shop Legislation."
The legislative fight this year is shap-
ing up to be as grueling as its
predecessors, but with a difference. The
Strike Bill affects a radical shift in the
balance of power between unions and
management without many companies
yet appreciating its true impact or intent.
The direct effects of the legislation can
be summarized fairly succinctly. The bill
prohibits employers from hiring perma-
nent replacement workers during "labor
disputes" and guarantees reinstatement
of workers who walk off their jobs. The
Strike Bill also prevents employers from
granting preferences, such as promo-
tions and recognition for training, to
nonstriking or crossover employees.
There are many unique aspects of the
construction industry that make it more
susceptible to strikes and to the harmful
consequences of the Strike Bill. Labor
disputes timed to coincide with a critical
period of construction, as when
numerous subcontractors are ap-
proaching deadlines, exert immeasurable
leverage on contractors to settle. The
contractor's ability to hire replacement
workers to finish the job places ap-
propriate restraint on the economic
pressures of organized labor. The Strike
Labor lawyer Robert T. Thompson: The Strike Bill would give enormously expanded powers
Bill would remove this restraint and, as
to unions. It is up to every contractor to inject a dose of reality into the debate.
a result, would encourage the use of the
strike weapon.
(continued)
CONSTRUCTOR/April 1991
63
THE STRIKE BILL (continued)
Likewise, reserved gates have
work during union-called strikes? Can the
longer hire permanent replace-
served well over the years to limit the
unions guarantee jobs following their
ments, it is the subcontractor that may
exposure of contractors to the disputes
strike? The answer today is "yes" to the
be replaced-permanently.
of others. The Strike Bill would apply to
first question and "no" to the second.
Much of the reasoning behind the
all forms of lawful protest, including sym-
The Strike Bill reverses those answers
Strike Bill is difficult for contractors or
pathy strikes. Whether or not reserved
as a matter of law.
other business persons to follow and a
gates were established, contractors
In addition, the increased bargaining
review of the positions taken by labor
would not be able to replace workers in-
clout that the Strike Bill gives the unions
leaders would perhaps be beneficial. It
duced to stay off the job in sympathy with
would enhance union organizing.
has become a ritual at congressional
the primary strikers.
Workers would no longer need to weigh
hearings on the legislation for union
The rapid transition of the construction
the employer's right to hire permanent
witnesses to preface their remarks about
industry from union to predominately
replacements before buying into a
a hostile strike with the phrase "after we
open shop has caused thousands of
union's promise of results from a strike
were forced out on strike or "the
building trades members to work with
action. This would be the one instance
employer forced our members to go on
"their cards in their shoes." Many con-
under the nation's labor laws when union
strike." Through this reasoning there is
tractors have experienced the loss of
organizers could back up their promises
no culpability for failing to foresee the
these employees whenever a picket line
with a guarantee.
results of a strike action. In this scenario,
is established. The cause is not SO much
As currently written, the legislation
the strike is purely a defensive tactic, not
worker sympathy with union demands,
would also have a severe impact on the
an offensive weapon.
as worker fear of being fined for work-
ability of open shop contractors to
Other witnesses before the House and
ing through a dispute. The fact that a goal
discipline employees. The term "labor
Senate Labor Committees have
of the legislation is to increase the
dispute" used in the bill is exceedingly
unabashedly stated that in their ex-
number and power of strikes demon-
broad. Two or more workers would be
perience unions have never made an
strates that contractors will have greater
free to walk off the site giving little or
unreasonable demand or insisted on a
difficulty in continuing construction dur-
no reason except to say that they are
position that was detrimental to the
ing labor disputes.
protesting terms or conditions of employ-
overall health of the company. A promi-
Of course, more strikes will encourage
ment. Protests of this nature are
nent union lawyer recently asserted that
more violence, especially in the construc-
relatively infrequent because of the
unions are willing and capable of fairly
tion industry where bargaining and
countervailing employer right to hire per-
representing the best interest of replace-
organizing demands have historically
manent replacements. Passage of H.R.
ment workers, even while the strike con-
been backed up not with lawful conduct
5. /S. 55 would eliminate this response
tinues! It is difficult to understand the
but with sheer force. The Strike Bill
and establish a disruptive influence in the
logic of the bill when the arguments
presents yet another instance where
nonunion workplace. As a result of the
sound SO foreign.
labor's supporters in Congress have
legislation, small groups of workers could
Some members of the business com-
sought to increase union power but have
walk off their jobs for whatever period
munity have failed to take the Strike Bill
refused to deal directly with the results
of time-an hour, a long weekend, six
seriously because they cannot imagine
of its abuses.
weeks-and have a right to reinstate-
Congress taking it seriously. It is cause
For the unionized sector of the in-
ment whenever they decide to return to
for great concern that the views ex-
dustry, the Strike Bill means an im-
work.
pressed above are not limited to leaders
mediate and dramatic shift in the balance
Increasingly hostile labor relations and
of organized labor. Almost half of the
of bargaining power. Greater union clout
the greater instances of work stoppages
members of the House and a third of the
in negotiations would naturally lead to
would establish hidden dangers for
Senators have signed on to the legisla-
more extreme bargaining demands,
general contractors and subcontractors
tion as cosponsors. Lane Kirkland, presi-
backed up by more strikes. For exam-
alike. Efforts by the general contractors
dent of the AFL-CIO, recently asserted
ple, an issue vital to many contractors
to ensure completion of the work per-
that the measure will pass the House this
will be a renewed effort to include anti-
formed by a struck subcontractor could
summer and Senate action will be com-
dual shop clauses in collective bargain-
raise charges of joint or single employer
pleted by the end of the year.
ing agreements. Under the Strike Bill,
status, thus restricting the generals'
The fights over "Labor Law Reform"
unions would be better able to shut down
ability to find replacements. It is ex-
and double breasting were won because
a contractor's operations in support of
tremely likely that a liberal Labor Board
of the involvement and activism of
this bargaining demand. In an ironic twist
could relax the distinction between the
business people. So far, members of
of logic, unions would, in effect, be
separate companies and hold the general
Congress have been hearing that unions
granted the power to force through
contractors liable for completing the job
strike only in defense, that their demands
negotiations what they could not achieve
on behalf of the subcontractors.
are always reasonable, and that they
through Congress.
Subcontractors must be concerned
have the best interests of replacement
Open shop contractors are equally at
with the more practical and direct con-
workers at heart. It is up to every con-
risk by the legislation. Labor represen-
sequences of the legislation. A subcon-
tractor to inject a dose of reality into the
tatives have acknowledged that the bill
tractor suffering a walkout will face the
debate.
will make union organizing easier. One
very real possibility of being replaced by
of the biggest issues for workers in any
another subcontractor that can complete
-By Robert T. Thompson of the law firm Thomp-
organizing drive is what effect a strike
the job. If the subcontractor cannot per-
son, Mann & Hutson in Washington, D.C.
will have. Can workers end up out of
form his contract because he can no
64
April 1991/CONSTRUCTOR
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© 1989 Caterpillar
Reader Service No. 20
Digs for years. Not excuses.
624E
When you take a close look at any
TYPICAL
no periodic maintenance of any kind.
BUCKET
OPERATING
John Deere loader you'll be convinced
MODEL
HORSEPOWER
RANGE
WEIGHT
Final drives are another area that
that this is no idle promise.
244
55
1-1.3 cu.yd.
11,775lb.
deserve close scrutiny. They, too, are
Structural components, like the
mounted inboard and run in a cool-
344E
75
1.63-2 cu.yd.
16,014 lb.
mainframe, the loader mast and boom,
ing, filtered oil bath.
are massive and have plenty of well-
444E
95
1.75-2.38 cu.yd.
18,871 lb.
The JDAdvantEdge is the no-
placed reinforcing. But look further.
544E
115
2.25-2.88 cu.yd.
22,589 lb.
excuses side of the promise. It's a no-
Rugged engines use replaceable
cost extra that comes with each John
544E-TC
115
2.25-2.75
24,621 lb.
wet cylinder liners for superior heat
Deere loader
a huge package of
dissipation and long life. Light, cast
624E
135
2.63-3.25 cu.yd.
27,567 lb.
support programs, parts systems, war-
aluminum pistons reduce rod bearing
644E
160
3.25-4 cu.yd.
34,108lb.
ranty plans, finance packages and
loads. And high-capacity lubrication
dealer resources all dedicated to giv-
744E
216
4-5 cu.yd.
45,638lb.
systems provide cooled, filtered oil to
ing you the best value for your loader
moving parts and spray the underside
dollar.
of pistons to dissipate heat.
So when you're looking for a loader
The all-hydraulic braking sys-
that will dig for years, and you aren't
tem is as trouble free as there is.
JOHN DEERE
going to stand still for excuses, see
There's no bothersome air system.
your John Deere dealer. He's listed in
Brakes are self-adjusting and require
RUN WITH THE BEST
the Yellow Pages.
Reader Service No. 21