Technology Trends for 2013
ABC Future Leaders in Construction
Alabama Bizcon Announced
ALABAMA
CONSTRUCTION N EWS
Bob Riley & Richard Drennen
Constructors May Be Missing Big Tax Credits and Deductions PAGE 27
Workforce Development PAGE 36
How Potential Tax Changes Could Affect Your Business PAGE 22
OCT/NOV 2012
ACP | Auto | General Liability | Property | BOP
DoesYour Business Insurance BUILD Dividends? Ours does. We’ve returned more than $2.5 million to our member policyholders over the first four program years alone. You too can enjoy preferred pricing and coverage exclusively designed for the contracting industry — plus the opportunity to earn dividends. Call Todd Walker at ABC-AL at 205-870-9768, ext. 104.
www.abc-alabama.org
www.pennnationalinsurance.com
TOGETHER WE
protect your company’s profitability. S.S. Nesbitt’s broad expertise in the complexities of doing business today helps us tailor comprehensive insurance solutions to address your most difficult issues and make sure you have the right coverage in place to ensure your company stays safe. S.S. Nesbitt can meet your specific insurance needs through our participation in the ABC/Penn National Property & Casualty Insurance Program. It’s a team approach to insurance, offering competitive pricing and large group buying power, along with services aimed at helping you reduce losses. Visit www.ssnconstruction.com to learn more about our special offers just for ABC members.
3500 Blue Lake Drive, #120 Birmingham, Alabama 35243 Main: (205) 262-2700 Toll Free: (800) 422-3223
ssnconstruction.com
What I know: I know that at any one time, we may have 30 large construction projects underway all over the world. I know that by hiring 70 percent of our workers from the community in which we’re building, we build more than just a project. I know the only way to run an international construction company is to delegate. I know that coaching a competitive soccer team relates to running a successful construction company in ways you might not realize. I know that working with people is supremely satisfying. I know our success is predicated upon allowing people to do what they know. I know we can allow Bradley Arant Boult Cummings attorneys to do what they know, and B.L. Harbert International will be well served. That’s what I know. JIM REIN CHIEF OPERATING OFFICER B.L. HARBERT INTERNATIONAL
AMONG THE NATION’S BEST LAWYERS
babc.com
|
ALABAMA
|
D I S T R I C T O F C O LU M B I A
|
MISSISSIPPI
|
NOR TH CAROLINA
|
TENNESSEE
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. Contact: John B. Grenier, Esq., 1819 Fifth Avenue North, Birmingham, Alabama 35203
FEATURES
26
Constructors May Be Missing Big Tax Credits & Deductions Architectural, engineering and construction firms can obtain tax credits and energy efficient deductions when they employ innovative techniques. The amounts are impressive.
33
In Black and White Economics, Construction Colors Alabama Industry
Quantifiable evidence in a new report shows just how big the impact commercial construction is on Alabama’s overall economy. The results are surprising, and will help make an impact on lawmakers in Montgomery.
36
Workforce Development: Do Veterans Hold a Key?
Veteran recruitment and training can contribute to the workforce development of both skilled craftsmen as well as supervisory personnel. Military veterans are already a proven ingredient in the mix. How the construction industry is helping itself by helping vets.
photograph by STEPHEN DEVRIES
OCT/NOV 2012
AL CONSTRUCTION NEWS
03
6
13
DEPARTMENTS 06 From the President
Why Our Industry Matters
BUILDING ALABAMA 09 Projects Updates & Reports
22
New concepts in elder-care in Birmingham, recreation and wellness buildings for Auburn and AUM students, Caddell and Goodrich named to Alabama Business Hall of Fame.
18 Outlook & Trends
What is the latest news on industry outlooks and trends? See the information that predicts a shift in the construction trade.
22 How Could Potential Tax Changes Affect
Your Business?
The fiscal cliff looms at the start of 2013. How will your business be affected even if Congress reaches a consensus? How your business is structured makes a big difference.
40 Alabama to Host Craftsman Championships
40
The best of the best will make their way to the Magic City in 2013 for the National Craft Championships. How Birmingham won this coveted competition.
ABC NEWS & NOTES 50 Future Leaders in Construction
04
AL CONSTRUCTION NEWS
OCT/NOV 2012
ABC-Alabama’s Future Leaders in Construction is renowned for giving its participants practical, hands-on training in how to lead and make a difference. Meet this year’s class.
OCT/NOV 2012
AL CONSTRUCTION NEWS
05
From the President “THE BEST WAY ELECTED OFFICIALS CAN help Alabama recover is to help Construction.” You cannot imagine the excitement from our Board of Directors as Dr. Keivan Deravi recently made this statement as he began his Economic Impact executive summary presentation to the ABC Board of Directors. For the first time in the history of our State the official numbers have been compiled that solidifies what our industry has thought all along. Construction is a key player in the economic engine of Alabama. In this issue we present to you the findings. Under the direction of Geoff Golden and ABC’s 2012 Board of Directions, Dr Keivan Deravi was commissioned to take an in-depth look at exactly what role conJay Reed President, ABC of Alabama struction played in the financial components of the State’s budget and operations. We are certain you will find this study interesting. While reading this study’s finding please note we did request Dr Deravi err on the side of caution and proceed with the study using conservative numbers. Even with those factors Dr. Deravi himself said he was amazed at what construction means to Alabama. This ABC study can now be update very easily every two years. The end result will be provided to elected officials and media outlets to again show what you do out there (on a job sight) matters down there (Montgomery). “THIS IS EXACTLY WHAT WE HAVE BEEN MISSING.” Another favorite quote of mine regarding the study. This quote was from Senator Blackwell. As budgets are allocated for workforce development and industry recruitment in our State these facts are needed. We know this study will provide documented details about why it is in the best interest of elected officials to support our industry. Our next plan is to provide Senator Blackwell hardbound copies of the study to have on hand for Senate hearings and his use when supporting pro construction legislation. We will also provide copies to every House and Senate member when they go back into Session February 2013. “THESE NUMBERS MEAN JOBS. From ABC’s office to the Governors office this data can be used to prove when industry comes here, Alabama contractors can build their facilities!” Please let that statement by legislative chairman Tim Hightower sink in. Almost every one in Economic Development circles we talk to has discussed needing this data. True state preference language is a slippery slope that can actually hurt our industry due to the amount of construction work we do out of state. At least now the Governors office and economic development recruiters have hard facts that show our capabilities and strengths. Using in State contractors first, keeps Alabamians working and hopefully our study can play a role in helping Alabama contractors compete and win these large scale projects when industry is recruited here. It has been simply rewarding for me to watch elected officials, ABC members and the media respond to the indisputable evidence that our industry is the economic engine we always knew you were. Thanks for allowing myself and the rest of the ABC staff to share your success story. It is a story I sincerely love to tell.
Jay Reed,
Publisher/ President - Associated Builders and Contractors Please note the full study is available by contacting our office 06
AL CONSTRUCTION NEWS
OCT/NOV 2012
ALABAMA
CONSTRUCTION N EWS
Publisher
Jay Reed Associate Publisher/ Managing Editor
Todd Walker Publishing Coordinator/Circulation
Charles Hall Accounting
Jenny Wilson Advertising Sales
George Pierce Editor
Hugh J. Rushing Print Production
Alliance Publishing Group Art Direction
Ideogram, LLC Copy Editor
Megan Beavers Alabama Construction News is published by Associated Builders & Contractors, Inc. Copyright © 2012 ABC-Alabama All rights reserved. Reproduction in whole or part without written permission is prohibited.
Address all correspondence to: Alabama Construction News 1830 28th Avenue So. Birmingham, AL 35209
For advertising information: contact George Pierce at 205.870.9768 x100 or email george@abc-alabama.org.
For editorial information: contact Hugh J. Rushing at 205.592.0389 or email hrushing@usit.net.
STOP HERE
FOR MORE THAN JUST CAT EQUIPMENT. ®
your ComPlete eQuiPment sourCe. Whether you’re looking to purchase or rent, turn to The Thompson Cat Rental Store for the equipment and tools you need to get the job done. Along with a full line of Caterpillar equipment, we carry several top brands of other high quality equipment. To meet all of your job site
needs our fleet includes a large variety of Work Tool Attachments, Light Towers, Trenchers, Dump Trucks, Water Trucks, Generators and Air Compressors… just to name a few. stop by the thompson Cat rental store to purchase or rent the equipment you need today.
Illustration by Name Here
scan the QrC code to the left, visit our website or stop by the store nearest you to learn more. Birmingham (205) 326-0334
huntsville (256) 532-3001
montgomery (334) 262-1101
Panama City (850) 235-9624
shelBy County (205) 664-9489
Dothan (334) 673-3300
moBile (251) 452-1180
oxforD/anniston (256) 835-5737
PensaCola (850) 471-6710
tusCaloosa (205) 247-3402
www.thompsontractor.com
© 2012 Caterpillar All rights reserved. CAT, CATERPILLAR, their respective logos, “Caterpillar Yellow,” the “Power Edge” trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. www.cat.com photograph by NAMEGOES HEREwww.caterpillar.com OCT/NOV 2012 AL CONSTRUCTION NEWS 07
• Foundation Repair • MacLean Helical Piers • Helical Tiebacks • Pressure Grouting • Soil Stabilization • Titan / IBO Anchors & Piers • GeoStone Retaining Walls • Epoxy & Urethane Injection
BUILDING
ALABAMA Compelling Projects, Updates & Reports For and By Alabama Firms
photograph by STEPHEN DEVRIES
OCT/NOV 2012
AL CONSTRUCTION NEWS
09
BUILDING
ALABAMA P R O J E CT S
Brasfield & Gorrie Completes Alabama’s New Model of Nursing Home Living
B
RASFIELD & GORRIE HAS RECENTLY completed phase two of construction of the Cottages at St. Martin’s in the Pines. St. Martin’s is the first nursing home operator to open residential-style nursing homes in Alabama, a new approach to the care of senior citizens. The Cottages at St. Martin’s is also part of the Green House Project, a national de-institutionalization effort. This is designed to restore individuals to a home in the community by combining small homes with a full range of personal care and clinical services expected in high-quality nursing homes. As part of this model, nursing assistants handle chores, provide personal care and manage activities for residents in each ten-to-twelve bedroom home. “We are honored to lead a new way forward in the care of Alabama’s seniors,” said Terry Rogers, St. Martin’s president and CEO. “Our phase one project, which opened in 2008, has proven that the new model works to provide a better environment and quality of life for those living there. The positive impact extends to the seniors’ families as well as to the staff. We’ve seen remarkable improvement in resident and staff satisfaction levels, and staff turnover is down to record lows. Phase two allows us to provide this model of care for another thirty seniors.” The second phase consists of a new 22,875-square-foot, three-story cottage located on the St. Martin’s campus. Each floor is an independent unit with 10 individual rooms, each with a full private bathroom.
10
AL CONSTRUCTION NEWS
OCT/NOV 2012
Every floor has a fully functional kitchen, dining area, common sitting and living area and outside sitting area. The ground floor has a garden area with a fountain and security gates, and the second and third floors each have a screened porch. “We look forward to giving Alabama’s senior citizens a modern residential community that tailors to their specific physical and social needs,” said Bill Steed, Division Manager at Brasfield & Gorrie. “The Cottages at St. Martin’s will provide a familiar and warm environment for the long-term care of its elderly residents.” Phase one consisted of two 21,500-sq-ft, three-story cottages and was completed by Brasfield & Gorrie in 2008.
Brasfield & Gorrie Phase One Building of The Cottages at St. Martin’s
Goodrich and Caddell Inducted into Alabama Business Hall of Fame RETIRED CONSTRUCTION executives Michael Goodrich and John Caddell have been inducted into the Alabama Business Hall of Fame. The two join more than 130 so honored by the Culverhouse College of Commerce at the University of Alabama. According to criteria published by the Hall of Fame, to be eligible for selection, a person must have brought fame and honor to the state of Alabama and should have made a significant impact on the develop-
ment of community and state by promoting the free enterprise system and entrepreneurship. Members have also demonstrated civic leadership, philanthropy and humanitarianism toward their fellow citizens. Caddell, 82, was president and CEO of Blount Construction before founding Caddell Construction in 1983. Caddell Construction is a major player in both domestic and international markets building diplomatic facilities, federal courthouses, prisons, hospitals, airports and other specialty projects. Caddell is a graduate of Georgia Tech and the AMP program of Harvard Business school. Michael Goodrich, 66, was chairman and CEO of BE&K, which is now part of construction giant KBR. BE&K provided engineering and construction services to large, complex industrial and commercial projects
Hoar Construction Completes Work on Hospital Addition BIRMINGHAM’S HOAR Construction recently finished work on a nearly 22,000-squarefoot addition to Medical Center Enterprise. The new two-story facility has 18 beds with five labor/delivery rooms and thirteen new-mother rooms. With a mechanical packaged rooftop unit and an emergency generator, the new facility has been designed for the addition of a third story in the future.
DECATUR DECATUR CONTAINER CONTAINER SALES & RENTAL STORAGE CONTAINERS • FLATS VANS • STORAGE TRAILERS WE DELIVER ANYWHERE | MOBILE OFFICES AVAILABLE Office (256) 751-3800 | Toll Free (888) 751-3802 Mobile (205) 526-2699 | Fax (256) 751-3803
www.decaturcontainer.com
NEAL SELLERS
5375 Marsha Avenue Decatur, AL 35603 nsellers24@gmail.com
Hoar Construction Addition to Medical Center Enterprise.
RETREAT. REGROUP. RELAX. Reload. around the world. Goodrich is a Tulane University Graduate in civil engineering and also received a law degree from the University of Alabama. Both men are past recipients of the Alabama Construction News Cornerstone Award.
Additionally, nearly 7,000 feet on the lower level remains unfinished but ready for future expansions. The owner is Franklin, Tenn. based Community Health Systems. The design was by C. Ross Architects of Nashville.
SELWOOD FARM 706 Selwood Road Alpine, AL 35014 800.522.0403 selwoodfarm.com SELwOOD FARm 706 Selwood Road Alpine, AL 35014 OCT/NOV 2012 800-522-0403 selwoodfarm@aol.com
AL CONSTRUCTION NEWS
11
BUILDING
ALABAMA P R O J E CT S
Dominion Partners Destin Area Apartments
Dominion Partners Robins & Morton Breaks Ground Celebrates on Destin area Topping Out Apartments of Auburn BIRMINGHAM’S DOMINION PARTNERS Rec Center recently broke ground on a 250-unit Class A apartment project in Destin, Florida. Maxus Construction of Birmingham will manage construction, and Multicon Construction of Atlanta will be the general contractor. The project is in the Topsail Planned Unit Development, which is a development of St. Joe, two miles from the Sandestin Resort. Completion is expected in twelve months. The apartments will include one-, two- and three-bedroom units with average rentable space of 966 square feet and will be constructed on a 19-acre site facing U.S. Highway 98. The development also includes a 1,500-square-foot health facility within a community clubhouse. There will also be a resort-style pool, a covered outdoor pavilion and covered parking. Dominion has developed and manages multi-family and senior living communities in Alabama, Georgia, South Carolina and Virgina. Architects are Pucciano & English of Atlanta.
12
AL CONSTRUCTION NEWS
OCT/NOV 2012
ROBINS & MORTON CELEBRATED the topping out of the new Auburn University Recreation and Wellness Center in early September. The construction milestone marked the completion of the steel structure by ceremoniously raising the last beam into place by crane. The steel beam, signed by Auburn University administrators, faculty, staff, students and construction workers, was adorned with an American flag and a genetic clone of Auburn University’s beloved Toomer’s Corner oak trees. The oak was used in place of the traditional evergreen tree, representing life and growth of the new building and will be planted at the facility when the project is completed. Following the ceremony, the construction staff was treated to a catered barbecue lunch. The $72 million state-of-the-art facility is on track to receive LEED® Silver certification. The facility will feature a large
cardio and weight room, a one-third mile indoor track, an outdoor leisure pool, a three-story rock-climbing wall, eight basketball courts, an indoor soccer field and a golf simulator, among other amenities. The 240,000-square-foot center, which is twoand-a-half times the size of the current recreation center, is scheduled to be completed in Spring 2013. “The topping out celebration is an exciting time for everyone at Auburn University,” said Jennifer Jarvis, director of Campus Recreation. “We’re thrilled to bring a premier recreation and wellness center to our students at Auburn University. This project could not be completed without the enormous coordination effort, support and teamwork from Robins & Morton and all of the construction vendors involved.” In addition to the Recreation and Wellness Center, Robins & Morton is managing construction on the $13 million facility for the College of Education’s Department of Kinesiology. The new building will offer nearly 58,000 square feet of research and office space for the department. Robins & Morton has also been selected as the construction manager for the Central Classroom facility project, which is scheduled to start in Spring 2014. Robins & Morton Auburn Rec Center
BUILDING
ALABAMA BL Harbert International Wellness Center at Auburn University Montgomery
BL Harbert International Finished Wellness Center at Auburn University/ Montgomery BL HARBERT HAS finished work on the AUM Wellness Center in Montgomery. The 75,000-square-foot structure will serve both students and faculty at Auburn’s Montgomery campus. Harbert served as construction manager on the $20.6 million project which houses two basketball courts, two multipurpose rooms, an indoor lap/recreational pool, outdoor spa, indoor track and climbing wall, along with class-
P R O J E CT S
rooms, lecture halls and labs. There is an accompanying field house and two intramural fields as well. The project is expected to receive LEED® Silver certification from the U.S. Green Building Council. BL Harbert President of U.S. Operations Gary Savage said, “This project will have a significant positive impact on current and future AUM students and the Montgomery community as a whole.
Penn National Insurance & ABC Renew Contract PENN NATIONAL INSURANCE IS an agency that sells property-casualty insurance. This agency ranks in the top 10 percent out of more than 1,000 American property-casualty groups. Penn has been an affiliate with ABC for nearly six years. In alignment with that, ABC members receive an upfront premium discount on general liability and auto coverage when they purchase business insurance through Penn. Additionally, members can earn a dividend, depending on the group premium volume and claims experience. Since the program’s inception in 2006,
Penn National Insurance has paid dividends totaling almost $2.6 million in four of the five program years. ABC Cites Penn National as an incredibly steadfast resource. Jay Reed, president of Associated Builders and Contractors Alabama, speaks highly of the partnership between the two organizations. “I really do not see Penn National Insurance as just an agreement or a formal endorsed program. I see this as more of a true relationship that provides value to the members and to the industry. Contractors get a quality insurance program that includes an exclusive dividend feature,” says Reed. “ABC gains because increased membership dues make us able to further our cause, to better the industry and be more active in the legislature, spur economic development, address workforce needs and on and on.” Reed continues, “What people miss is by Penn giving back to the industry we are able to further our cause. Their commitment to our Safety Program alone has undoubtedly saved lives. Again, Penn National is not just an ABC-endorsed affinity program. It means so much more to the construction industry in Alabama. I know beyond a shadow of a doubt we are a better association because of Penn National.” Penn National’s Regional Vice Presi-
OCT/NOV 2012
AL CONSTRUCTION NEWS
13
BUILDING
ALABAMA P R O J E CT S
dent Jim Alexander gives a statement from the agency on the ABC/Penn collaboration. “We are pleased to announce that Penn National Insurance and the Associated Builders and Contractors of Alabama have renewed their contract for an exclusive property-casualty insurance program for the 2012/2015 term.” Members of ABC Alabama will have
access to this program through Penn National Insurance licensed property and casualty agents in the state of Alabama. ABC members exclusively will become eligible for many offers such as competitive pricing, large group buying power, information and services to help reduce losses and up front discounts coupled with loss ration based dividends. The following lines of insurance qualify: business owners, commercial auto, crime, commercial fire, general liability, glass, inland marine and artisan contractor’s policies. The ABC/Penn National program had grown to $15,000,000 by the end of 2009, and it has held steady at that volume level into current times, which is pleasing based on the economy for the past three years. There are currently
over 360 accounts in the program. “Penn Nation Insurance has enjoyed this exclusive arrangement with ABC since October 1, 2006,” says Alexander. “We look forward to growing the program as the economic outlook becomes more favorable in the near future.”
Construction Execs Join in Raising Political Action Committee Funds TOP BIRMINGHAM AREA CONstruction executives gathered at Alabama State Senator Slade Blackwell’s home in September to raise funds to support political campaigns of state office holders. Tim Hightower, chair of ABC’s Legisla-
IT’S A WASTE TO WASTE MONEY ON WASTE. At Alabama Dumpster Service, we have the dumpster or roll-off container that’s right for your business and your budget. Our customer service is unsurpassed and you can trust us for timely delivery and pick-up. So take a second look at your trash removal costs and call us. We’ll make sure you’re not wasting money on waste.
FRONT LOADS | ROLL-OFFS | COMPACTORS | PORTABLE RESTROOMS AlabamaDumpster.com | 334-288-1500 14
follow us on facebook
AL CONSTRUCTION NEWS
OCT/NOV 2012
photograph by NAMEGOES HERE
Illustration by Name Here
No business can afford to waste money on waste. Sadly, many businesses don’t know what they’re actually paying, or who is even in charge of it. Someone signed a contract long ago, the bills keep coming and nobody worries about it. But most companies’ contracts have built in rate increases. So you may be paying a lot more than you should.
BUILDING
ALABAMA U P D AT E S & R E P O RT S
Illustration by Name Here
tive committee, gave a brief address which highlighted the increased presence of ABC at Alabama’s statehouse in Montgomery. “When anyone in Montgomery thinks about legislation regarding economic development or public works, it has become automatic for them to consider ABC of Alabama’s position. Thanks to the hard work of ABC’s Jay Reed, I believe that we have a greater voice in the deliberations which go on every year in our state capitol.” Executives welcomed State Senator J.T. “Jabbo” Wagner and Jefferson County Commissioner David Carrington. Hosting the event and also in attendance were Jim Gorrie of Brasfield & Gorrie, Billy Harbert of BL Harbert International and Bill Morton of Robins & Morton. “Recent numbers show Alabama’s Commercial Construction industry as a 9.5 billion dollar contributor to the state. For us to continue contributing to that economic engine of the state we need a voice in Montgomery, and I feel ABC has become that voice,” added Jim Gorrie.
photograph by NAMEGOES HERE
OCT/NOV 2012
AL CONSTRUCTION NEWS
15
BL Harbert International leading the way
Bob Morrow Continues Work on Hoo’s Q Barbeque Bob Morrow Construction located in Tuscaloosa, is currently working on Hoo’s Q Barbeque restaurant, which is going to be on 15th street in Tuscaloosa, where Mike and Ed’s BBQ’s use to be before the tornado. Bob Morrow is working diligently to help rebuild Tuscaloosa. They are also at the beginning stages of a BB&T Bank branch project in Madison County, AL.
THE NEW BL HARBERT INTERNATIONAL FACILITY in Birmingham is evidence that they are focused on doing the right thing rather than just fulfilling a requirement or project specification. Their newly constructed 2-story, 38,000-SF office building is slated to achieve LEED® Gold Certification from the U.S. Green Building Council. To help them achieve this high level of certification for their new office building, BLHI chose Birmingham-based firm Building Diagnostics & Property Science to perform LEED® Enhanced Commissioning as well as Building Envelope Air Tightness Testing. The new BLHI office building was Building Diagnostics & Property Science’s 50th commissioning project since Josh Bhate founded it in 2005. Building Diagnostics and Property Science was formed to provide services that improve sustainability and deliver high performance buildings, such as: building commissioning, building envelope consulting and testing and evaluation of energy systems. With BLHI’s commitment to sustainability and Building Diagnostics and Property Science’s expertise, the new corporate facility is a state-of-the-art, energy efficient, and sustainable facility.
CRI’S
CONSTRUCTION INDUSTRY
YEAR-END SEMINAR C R E AT I V E S O L U T I O N S F O R CONTRACTORS TO KEEP THEIR
MONEY IN THEIR POCKETS
REGISTER FOR A SEMINAR
NEAR YOU
Seminars will be held in early December. Snap this QR code with your mobile phone to register for our event, or visit: CRIcpa.com/events.aspx
CRIcpa.com blog.cricpa.com
BUILDING
ALABAMA
Eight organizations hold their $11500 checks from Brasfield & Gorrie
Betsy Hayes of Blackjack Horticulture First place in People's Choice category
The top of B&G’s parking deck housed the 37 teams
Where There’s Smoke... There Is Charitable Support
Brasfield & Gorrie’s Estimating Department’s Annual Barbecue Competition brings out the best in everyone.
T
The smoke was thick, the smells delectable, and the Brasfield & Gorrie 7th Annual barbecue cook-off once again produced support for eight charities heading into 2012’s Labor Day weekend. A project conceived seven years ago by the firm’s estimating department, this year’s competition featured 37 teams vying for top honors in taste and spirit as well as checks for the worthwhile projects supported by the party. Team winners collected a flamegarnished trophy with—what else—a golden pig at the top.
Doug Lee of Brasfield said subs and vendors organize themselves into teams, raffling prizes, selling pork butts and slabs of ribs and joining in the fun. “It is a tremendous effort and as they always do, our subs and vendors just out did themselves again this year. It’s a wonderful chance for us to have a good time and fellowship with them while sharing great food.” Families turn out for not only the food but children’s activities and entertainment. Most of the good works supported by the event have connections with Brasfield
& Gorrie employees but also include community-wide organizations such as the Christian Service Mission and the Red Cross. Giant checks for $11,500, signed by Dan Spooner who headed the event, were distributed to the worthy organizations. Spooner credits Jim and Nick’s, a Birmingham-based barbecue restaurant franchiser, for their support and help with the project. “They provide the sides that go along with the meats, enable our teams to get wholesale pricing for their butts and ribs and help with quality control.” Brasfield’s Hailey Lunceford pointed out that the series of events has raised over $450,000 in the past seven years. “Our folks work really hard to make each year bigger than the last. Folks turn out to buy the meats which enables them to have a less stressful Labor Day weekend. Many of our partners donated prizes which were sold or auctioned off, which means even more funds to support the organizations benefiting from the barbecue.” Groups receiving checks from this year’s cook-off were: The Amelia Center, American Foundation for Suicide Prevention, American Red Cross, Christian Service Mission, & M-Power Ministries. Also receiving checks were, UAB School of Medicine - Tuberous Sclerosis Clinic, Triumph Services and the Wounded Warrior Project.
OCT/NOV 2012
AL CONSTRUCTION NEWS
17
BUILDING
ALABAMA O UTLO O K & TREN DS
ABC of Alabama presents
Industry Outlook & Trends • F O R A L A BA M A •
NRCI Third Quarter 2012 Executive Summary
T
HE LONG ANTICIPATED RECOVERY COULD BE THE downfall of more marginally surviving contractors. The NRCI reading is down five points from last quarter. A concern noted by panelists is that too many contractors have been taking on too much low-bid work just to keep business up. It is now time for the construction industry to think about a potential outcome if the recovery continues moving at a glacial speed. After reviewing the major components of the NRCI from last quarter, most are down, especially those concerning the economy. However, interestingly, panelists’ backlogs have improved from a median of eight to nine months for the first time since the second quarter of 2011. It seems that temporary gains in the economy have been enough to boost sales or release projects that have been on hold for a long time. Panelists anticipate much stronger activity in 2013. Currently, owners expect lower prices and more bidders. However, it is possible that they will find fewer contractors willing to do the work or just fewer contractors in the market and higher prices than expected. The overall economy dropped a large margin of 72.8 last quarter to 48.1 this quarter in the NRCI. Any optimism that was shown in the spring has been tarnished by the numbers of summer. The overall economy where the panelists do business dropped as well with 71.7 last quarter to just 51.9 this quarter. Panelists’ construction business is still in the positive range at 59.9, but it has slipped from last quarter’s 65.4. Growth in labor costs has slowed slightly since last quarter. This change indicates lower labor costs. Productivity continues to grow at 53.1 despite busier crews. Panelists are seeing much less use of bank loans for construction and increasing use of contractors participating as project partners and owner/ developer self-funded projects. On an adverse note, low and nonexistent profits are causing an upturn in bankruptcies. A current issue in construction is funding sources. One of the main reasons the industry cannot get past the recession
18
AL CONSTRUCTION NEWS
OCT/NOV 2012
is that banks aren’t lending or have much higher restriction and qualification requirements for loans. Most do not look for this funding source to have a significant increase, at least until more mature loans are off the books and new loans can bear higher interest rates. Another area facing issues is fees and profit margin. Construction project competition is expected to ease, but there are very few signs of that occurring at this point in time. Construction profit margins are under even greater stress than CM/PM fees as NRCI panelists report profits in more than 60 percent of all major markets have been trending lower with commercial construction leading the way down.
Construction Economic Update AN INCREASE IN THE NATION’S CONSTRUCTION materials was seen for the first time in four months. This raise was noted at 0.9 percent in August. This seems to be an annual trend. Nonresidential construction materials also climbed one percent higher for the month. There were price increases seen in most construction materials such as softwood lumber with 3.4 percent increase. An increase in nonferrous wire and cable products of 0.5 percent was also seen, but these have declined 6.4 percent during the last twelve months. Concrete product prices rose 0.5 percent making them 2.1 percent higher than last year. Iron and steel are down 9.2 percent year over year but have increased 0.3 percent for the month of August. With a small percentage of 0.1, plumbing fixtures and fittings inched up as well. Crude energy materials prices jumped 9.7 percent in August. Also increasing in August was the nation’s wholesale good prices at 1.7 percent. Some prices that dropped include steel mill prices (2.5 percent), prepared asphalt, tar roofing and siding (1.8 percent.) Fabricated structural metal declined by only 0.2 percent and remains unchanged from twelve months ago. “From a construction viewpoint, rising materials prices render construction service delivery more expensive, which carries over to higher project cost estimates,” says ABC Chief Economist Anirban Basu.
BUILDING
ALABAMA
2012 AIA Firm Survey
THIRD QUARTER 2012 Current NRCI Summary 35.6 45.0 44.8 47.7 48.4 54.5 51.3 51.9 57.3 58.7 52.4 50.3 58.1 58.9 54.8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012
Overall Economy Where We Do Business Our Construction Business Nonresidential Building Construction Market Where We Do Business Our Expected Backlog Cost Of Construction Materials Cost Of Labor Productivity
THE AMERICAN INSTITUTE OF Architects (AIA) recently released a survey concerning the economic state of architecture firms across the United States. This press release concerning the 2012 AIA Firm Survey revealed that the economic downturn has cut architecture firm revenue down by 40 percent. It also noted that nearly a third of personnel have been cut. According to the 2012 AIA Firm Survey, construction activity is continuing to spiral downward with construction spending levels shifting from $1 trillion in 2008 to under $800 billion in 2011. The 40 percent decline seen in architecture firms has happened in the span of these three years.
Such a significant reduction in firm revenue produced a comparable reduction in employment. Construction payrolls peaked in early 2007 and steadily declined through mid-2011 due to the housing downturn. Since then, there has been very little recovery. Because of the heavy reliance of architecture firms on nonresidential construction activity, positions became available through mid-2008. However, from that point through early 2011 a steady decline was seen. Not much recovery has been noted since 2011 either. More than 28 percent of architect firm positions disappeared between 2007 and 2011. These statistics have also provided for change in the build-up of staffing in architect firms. 60 percent of payroll positions were architecture positions. Design professionals made up only 21 percent while technical and support staff made up the remaining 19 percent.
August Construction Spending Below July SPENDING DURING AUGUST 2012 WAS ESTIMATED AT A SEASONALLY adjusted annual rate of $837.1 billion, according to the U.S. Census Bureau of the Department of Commerce. This number sits 0.6 percent below the revised estimate of July. The slowdown between these months is linked between the public and private market segments.
However, 2012’s August report was marked 6.5 percent above last year’s. Total in millions:
August 2012 $873,089
Private Sector
$562,201 (67.16% of total)
Residential
$273,470 (32.67%)
Nonresidential
$288,731 (34.49%) 19 months straight, higher than residential
Public Sector
$274,888 (32.84% of total)
State/Local
$249,682 (29.83%)
20
AL CONSTRUCTION NEWS
OCT/NOV 2012
© 2012 Alabama Power Company
ELECTRICAL SAFETY TIP No.33
JANUARY IS ELECTRICAL SAFETY MONTH. AS IS FEBRUARY, MARCH, APRIL, MAY, JUNE, JULY, AUGUST, SEPTEMBER, OCTOBER, NOVEMBER, AND DECEMBER.
By Kenneth Hicks Alabama Power Lineman
Never let your guard down when dealing with electricity. That’s the advice given to every lineman who works at Alabama Power. It’s also the advice we give our customers. Here are a few “must-know” tips to help keep you and your family safe. You may have heard a few of these before, but it can’t hurt to hear them again. 1. Stay away from downed power lines. Don’t drive over one. And remember, it’s not just the power line that may be electrified, but the ground surrounding the line, as well. 2. If a power line is touching your car, stay inside the vehicle and call 911. 3. Call 811 before you dig. 4. Install Ground Fault Circuit Interrupter outlets in your kitchen and bathrooms. 5. If something that’s plugged in falls into a sink full of water, DON’T reach in to get it. Don’t even unplug it until after you’ve cut the power off at the circuit breaker.
6. Watch where you’re placing that ladder. Do not let it touch any electrical wires.
How do you know if your Ground Fault Circuit Interrupter is protecting you and your family? It’s easy. Press the “test” button on the outlet. Whatever is plugged into that outlet should turn off immediately.
7. Don’t overload outlets. We’ve got more gadgets to plug in these days than ever before. That doesn’t mean an outlet can handle them all. Overloaded circuits cause an estimated 5300 fires a year. 8. Don’t touch a damaged electrical cord or one showing bare wire. 9. Don’t run an electrical cord under a rug. Don’t staple or nail electrical cords. 10. If you’ve got kids, cover your unused electrical outlets with plastic safety covers.
For more electrical safety tips, visit AlabamaPower.com/safety.
If it does, you’re in good shape and can press the “reset” button to restore normal operation. If nothing happens, you’ve got a problem. See our website or call us for advice on what to do in such a situation.
In an emergency call:
1-800-888-APCO (2726) OCT/NOV 2012
AL CONSTRUCTION NEWS
21
Illustration from istockphoto.com
How Could Potential Tax Changes Affect Your Business? by WILL ADERHOLT
A
Will Aderholt, CPA Warren Avertt, LLC
As we approach the end of 2012, business owners should begin to prepare for the impact of the many tax changes that could take place beginning in 2013. Some of these changes are due to certain tax provisions expiring, and others are new provisions that become effective in 2013. The situation will certainly remain fluid until a new president and congressional representatives are elected, but we do know which changes will take place absent legislative changes. It is important that you plan accordingly. 22
AL CONSTRUCTION NEWS
OCT/NOV 2012
Will Aderholt joined Warren Averett in 2008 after working for an Alabama-based financial institution. Will focuses his practice in the areas of federal and state tax compliance, tax planning and general business consulting for closely-held businesses. He also supervises compilation and review engagements. He has experience in a variety of industries including construction, architecture and engineering, healthcare, private-equity, manufacturing and retail.
EXPIRING TAX PROVISIONS
The tax rates currently in effect provide advantages enacted by tax legislation from early 2000. These are often termed the “Bush Tax Cuts”. The Bush Tax Cuts are set to expire on December 31, 2012. Specific rate changes, absent legislative changes, are as follows: Ordinary Rates The highest regular income tax bracket increases to 39.6%, up from 35% currently. Qualified Dividends Qualified dividends will no longer receive favorable tax treatment. The maximum rate will become 39.6%, up from 15% currently. Dividends may also be subject to the Medicare tax on investment income discussed below. Long-Term Capital Gains The top rate on long-term capital gains will increase to 20%, up from 15% currently. Capital gains may also be subject to the additional Medicare tax on investment income discussed below. The provisions that eliminated the itemized deduction limit and personal exemption phase-out for 2010 and 2011 will also expire at the end of 2012, bringing these limitations back into the fold. Healthcare Legislation Two pieces of healthcare legislation, passed in 2010, included numerous tax provisions. The Supreme Court’s recent decision upheld the constitutionality of the law, so we must now plan for its implementation. While there are numerous tax provisions included in the legislation, our analysis will focus on two that will have immediate impact on business owners and individual taxpayers. Medicare Tax on Investment Income Effective January 1, 2013, the law imposes a 3.8% Medicare contribution tax on “net investment income”. This tax is imposed on the lesser of net investment income or modified adjusted gross income in excess of $250,000, for couples filing a joint return ($200,000 for single individuals). Common income sources that are subject to this tax include: interest, dividends, annuities, rents, royalties, capital gains and income from passive investments in flow-through entities.
Additional Medicare Tax Effective January 1, 2013, an additional 0.9% Medicare tax is imposed on wages and self-employment income of higher-income individuals. The tax applies to married couples with applicable income in excess of $250,000 ($200,000 for individuals).
Changes for Businesses Absent legislative changes, two incentives for business investment will also change. Section 179 Deduction The maximum §179 deduction, which allows business owners to deduct the full cost of equipment in the year it is placed into service, is scheduled to decrease to $25,000 after December 31, 2012. The maximum deduction is currently $139,000. Bonus Depreciation The additional 50% first-year bonus depreciation is set to expire after December 31, 2012.
Sample Contractor S-Corporation Tax Information
2012
2013 Projected
Revenue Cost of Goods Sold Gross Profit Overhead Net Income Book/Tax Differences Taxable Income
$60,000,000 $50,000,000 $10,000,000 $7,500,000 $2,500,000 $175,000 $2,675,000
$60,000,000 $50,000,000 $10,000,000 $7,500,000 $2,500,000 $175,000 $2,675,000
Wages Taxable Interest Income Nonqualified Dividends Qualified Dividends Long-term Capital Gain S-Corporation Income Income Itemized and Other Deductions Exemptions Taxable Income
$300,000 $26,500 $12,750 $24,800 $15,000 $2,675,000 $3,054,050 $500,000 $4,600 $2,549,450
$300,000 $26,500 $12,750 $24,800 $15,000 $2,675,000 $3,054,050 $292,600 ---$2,761,450
Tax Calculation*
2012
2013 Projected
Tax on Wages & Business Income, (net of deductions) Tax on Interest Income Tax on Ordinary Dividends Tax on Qualified Dividends Tax on Long-term Capital Gains Payroll Tax on Wages (Employee Portion) Payroll Tax on Wages (Employer Portion) Total Tax
$864,640 $9,275 $4,463 $3,720 $2,250 $8,974 $11,176 $904,498
$1,062,680 $11,501 $5,534 $10,763 $3,570 $11,399 $11,399 $1,116,846
Effective Tax Rate Net Increase in Tax
30% $212,349
37%
Personal Tax Information
*Assumes all is taxed at maximum rates Based on a married couple filing joint return
OCT/NOV 2012
AL CONSTRUCTION NEWS
23
$
business owners.
WHAT SHOULD YOU DO?
How does this affect you?
It is now more important than ever to meet with your tax advisor prior to year-end to plan for these potential changes. The looming uncertainty over potential tax increases is certainly burdensome, but it can be coped through careful planning by taxpayers and their CPAs. Developing a strategy before year-end to mitigate the impact to your business is imperative, and you should meet with your advisor as soon as possible to begin planning. You should also be proactive in communicating with your legislators. They need to hear how legislative changes, or lack thereof, will affect you, as their constituent. ABC of Alabama will continue to remain in contact with these legislators and can be a great resource to promote the construction industry and its stakeholders’ legislative needs. Please contact them today.
ABOUT WARREN AVERETT, LLC
M
ost taxpayers will be adversely affected by these changes. Taxpayers with adjusted gross incomes in excess of $250,000 ($200,000, if single) will feel the greatest impact, as they will be subjected to the additional taxes imposed by the healthcare legislation. On the previous page is an example of how a contractor’s tax liability would change if the current legislative stalemate continues and no legislative changes are made. As you can see, these changes will have a significant impact to the cash-flow of many
As one of the Southeast’s largest accounting firms, Warren Averett, LLC understands the nuances of the construction industry. With over 550 professionals and a network of 11 offices throughout Alabama and Florida, Warren Averett has the resources to serve the unique needs of your business. Our firm has an established Construction Practice Group made up of experienced professionals who focus their practice on this industry. The Group stays abreast of regulatory changes and tax strategies so that we can best serve the needs of our clients. Warren Averett is also a member of The Construction Industry CPAs/Consultants Associations (CICPAC). This is a national association of CPA firms recognized in their respective markets for providing high quality financial and consulting services to construction entities.
Robins & Morton is proud to support the ABC Excellence in Construction Program
CONGRATULATIONS TO THE 2012 ABC ALABAMA AWARD WINNERS
Excellence in Construction Award Commercial — $5 to $15 Million
HOOVER 150 YMCA Birmingham, Alabama
Excellence in Construction Award
Excellence in Construction Award
Commercial — Less Than $5 Million
Industrial— $5 to $15 Million
ATHEROTECH
KEMPER COUNTY IGCC STEAM TURBINE GENERATOR
Birmingham, Alabama
Kemper County, Mississippi
Merit Award
EE R SS NE NE IN EN W C T CE AB LLEN CE EX
R
NE
IN AW
AM AB
AL
EE R SS NE NE IN EN W C T CE AB LLEN CE EX
TH
OR
CN AB
Excellence in Construction Award
Merit Award
Healthcare — $25 to $100 Million
Healthcare — Mega Projects
Healthcare — $10 to $25 Million
HUNTSVILLE MADISON HOSPITAL
PORTER REGIONAL HOSPITAL
FISHER TITUS MEDICAL CENTER
Madison, Alabama
Valparaiso, Indiana
www.robinsmorton.com
Norwalk, Ohio
The McWhorter School of Building Science A leader in exploring information technology applications in construction and construction education.
One of the oldest and largest construction programs in the country, the McWhorter School of Building Science has been preparing construction industry professionals since 1947. Our more than 3,000 graduates are industry leaders throughout the nation and abroad. Our program features: A Bachelor of Science in Building Construction program that is accredited by the American Council for Construction Education. A Masters of Integrated Design and Construction program that is the only jointly-housed degree granting program between construction management and architecture in the United States. A Masters of Building Construction program that is designed for both construction-major and career-change students. National and international student competitions, study abroad and international student exchange programs. The M. Miller Gorrie Center the first public Gold LEED certified building in Alabama a state-of-the art “green� building equipped with unmatched information technology The Center for Construction Innovation and Collaboration that promotes innovative approaches to problems and process through programs such as Studio+Build.
To learn more visit cadc.auburn.edu/BSCI
Pictured from left to right: Former Alabama Governor and alliantgroup Director Bob Riley, Alabama Representative/alliantgroup Associate Director LeeAnn Nagel, and President of Superior Mechanical Richard H. Drennen
26
AL CONSTRUCTION NEWS
OCT/NOV 2012
Big
Constructors may be missing
Tax Credits & Deductions
written by HUGH J. RUSHING | photography by STEPHEN DEVRIES
FOR MANY, THE PHRASE “RESEARCH & DEVELOPMENT” CONJURES UP images of big pharma and biotech, of lab coats and Bunsen burners, or of inventors toiling away in obscurity. Their Eureka moments happen only after years of struggle and disappointment. However, in reality, highly valuable credits are also available for innovative work done in many industries, especially construction, engineering and architecture. Additionally, lucrative incentives for environmentally friendly building are also available to these key industries. Alabama businesses in these fields are potentially eligible for sizable tax credits for R&D, but many miss out, mostly because of what Dean Zerbe describes as “self-censoring.” Zerbe is the National Managing Director of alliantgroup, the leading provider of specialty tax services that assists companies in claiming tax credits and incentives such as the R&D tax credit and energy efficiency deductions. Zerbe is also the former senior tax counsel to the U.S. Senate Finance Committee and assisted in writing the legislation that expanded the R&D credit to include a diverse array of industries. “Many in the construction industry don’t realize that what they do often does qualify as a tax credit,” Zerbe says. “In tough economic times, our aim is to help get our clients the maximum benefit from every credit and deduction they are eligible to receive.”
OCT/NOV 2012
AL CONSTRUCTION NEWS
27
alliantgroup Success Stories Mechanical Contractor Annual Revenue $36mm R&D Credit Result $466,000 Electrical Contractor Annual Revenue $45mm R&D Credit Result $648,000 Construction Company Annual Revenue $250mm R&D Credit Result $607,000 and 179D Credit Result $450,000
AN INSIDE LOOK AT THE R&D CREDIT
The federal R&D tax credit has been around since 1981, but it has only been in the last decade that the definition of what counts has been expanded. Many businesses who looked at the credit in the past and determined they didn’t qualify are now finding they are able to obtain significant benefits due to the credit’s broader applicability. In 2003, the U.S. Treasury put forth regulations that modified the documentation requirements and updated the definition of qualifying activities. R&D is no longer limited to a development or invention new to the marketplace or world; now it only needs to be new “Before I got into politics I had four businesses. Every one of them could to the company. have taken advantage of both the R&D tax credit and the 179D deKevin Corley, Senior Managing Director of alduction. I would urge every business to ask their accountant if they liantgroup, says many of can take advantage of this program. In Alabama we need to grow our the construction, engismall and medium companies and alliantgroup is a way to do that.” neering, and design firms he has worked with have Bob Riley Former Alabama Governor and alliantgroup Director performed activities that clearly make them eligible for the R&D tax credit. Having completed more than 10,000 studies, alliantgroup has secured over $2.6 billion in tax credits and incentives. “Some people think they have to have some elaborate record keeping system to qualify,” Corley said. “But, Congress was very clear when defining what qualifies for the credit, they A CHAMPION FOR ALABAMA BUSINESS didn’t want to place any onerous documentation requirement on Former Alabama Governor Bob Riley joined alliantgroup taxpayers. The credit is often supported by historical documents as a Director in April 2012 and serves as one of its primary kept by companies in their ordinary course of business.” champions in spreading the word of tax incentives. “I am Corley also says his firm’s experience typically enables them amazed at how many businesses there are that aren’t taking to identify credits or deductions available to a company through advantage of this program,” Riley says. “Before I got into a brief phone call, so extensive internal evaluation procedures politics I had four businesses. Every one of them could have are rarely needed. taken advantage of both the R&D tax credit and the 179D de-
28
AL CONSTRUCTION NEWS
OCT/NOV 2012
duction. I would urge every business to ask their accountant if they can take advantage of this program. In Alabama we need to grow our small and medium companies and alliantgroup is a way to do that.” Since many constructors already have accountants or CPAs, why don’t more firms take advantage of the research and development credit? Zerbe says more than 3,500 CPAs nation-
photograph by STEPHEN DEVRIES
wide choose to work with alliantgroup and their staff of over 300 industry-specific professionals specializing in this unique area of tax law because alliantgroup is highly familiar with the applications of the R&D credit and possesses the resources to help businesses obtain them. “We work closely with firms’ accounting folks to help identify and segregate those activities that can be used for R&D tax credits. The good news is that
OCT/NOV 2012
AL CONSTRUCTION NEWS
29
one can look back several years to claim the credits,” Zerbe commented. He also emphasized that alliantgroup does not compete with CPA firms but operates as a back office for them to help meet the needs of their clients. Construction specialist and alliantgroup associate Gabe Mosca (BSE, Civil Engineering) points out that the R&D credit rewards thinking “out of the box,” a quality many in the construction industry hold central to their business. “One firm was working to access a utility tunnel which didn’t allow for typical excavation techniques,” Mosca explained. “An idea was developed to use an innovative water blasting technique, which is a perfect example of research and development and a unique solution to a seemingly insoluble problem.” Other activities that can and do qualify include: value engineering exercises, LEED® designs, BIM techniques, pre-fab assemblies or offsite construction activities, lean concepts, and innovative solutions to building a structure. With more firms developing ways to reduce waste and increase efficiency on the job site, this tax credit operates in conjunction with work companies are doing anyway.
Qualified Research Activities for the Construction & Contracting Industries
30
AL CONSTRUCTION NEWS
1
Means, methods and construction techniques development
2
Structure and facility design for constructability
3
Construction equipment development and improvement
4
Building Information Modeling
5
BIM modeling for sub-system coordination
6
System detailing for constructability
7
Value engineering
8
Analysis of LEED® options
OCT/NOV 2012
179D: BUILDING FOR ENERGY EFFICIENCY
Constructors can also take advantage of the 179D energy efficient deduction when they work on qualifying projects for local, state or federal governments. According to Valerie Ward, alliantgroup’s National Director of Energy Credits and Incentives, eligible designers, engineers and contractors who perform energy efficient design work on new, renovated or retro-fitted buildings can garner a deduction of up to $1.80 per square foot for projects placed into service from 2006 to 2013. “Since government entities do not pay taxes, they can transfer these deductions to those who did the design and the work,” Ward says. Examples of work include energy efficient lighting, HVAC systems, hot water and building envelope systems. Schools, universities, military bases, airports, post offices and government offices are all examples of projects in which deductions may be available, Ward points out. Due to the success of the R&D Credit in encouraging innovation and strengthening the economy, Zerbe is confident that leaders in Washington and the state legislatures will continue to support the credit in the future. He believes this despite the looming fiscal cliff that the government will encounter if some sort of compromise isn’t reached prior to January. “The R&D credit and the 179D deduction are favored by politicians of both parties,” Zerbe says. “They know that it is good for this country and good for competitiveness. I don’t see it being disturbed at all. Both sides of the aisle recognize how vital the R&D credit is in promoting economic growth, and alliantgroup is dedicated to helping American business succeed.”
“In a time of difficulty in our industry, working with alliantgroup has been an unexpected bright spot this year. I can’t imagine why anyone wouldn’t take the time to at least assess what the firm can do for them. In our case, it was the equivalent of getting a $1 million project without the construction risk!” Richard H. Drennen, President of Superior Mechanical
OCT/NOV 2012
AL CONSTRUCTION NEWS
31
IN BLACK & WHITE
ECONOMIC$ Construction Colors Alabama Industry by BRITTINY RUSSELL
In Alabama, there’s no question that commercial construction is big… but just how big? The answer is now clear. TALK WITH THE U.S. BUREAU OF Economic Analysis (BEA) and you’ll get a complicated picture that groups commercial and residential construction into one broad category. Their reports state that construction contributes $7.6 billion to the state’s gross domestic product, totaling 4.5 percent of all economic activities generated by Alabama businesses. According to the BEA, construction amounts to 4 percent of the state’s payroll. While these numbers are impressive, only contractors and subcontractors are factored in, excluding a vast network of industry suppliers and service providers. But construction feeds many businesses. What about the banks who finance construction projects? The attorneys who write contracts? The lumber mills that provide materials? How much further would commercial
construction reach if we considered not just construction billing, but construction impact? That question was at the heart of the Associated Builders and Contractors’ recent decision to engage Keivan Deravi, Ph.D., a noted professor of economics at Auburn University Montgomery. With almost 30 years of experience in Alabama, Dr. Deravi has developed a reputation as the authority on economic forecasting in the state. His models were used in the recruitment of Mercedes Benz, Honda, Toyota and Hyundai. ABC challenged him to apply similar framework to the commercial construction industry as a whole. As Chairman of the Board, Geoff Golden commissioned the study on behalf of the association. “I am a facts and data guy by nature. I wanted to make sure our staff and industry had the
data needed to ‘sell our story.’ Internally we knew our numbers; we simply needed those validated by an economist. What will be very interesting is when we calculate how much construction Revenue we export as well” SETTING STANDARDS ABC and Dr. Deravi laid down ground rules. First and foremost, commercial and residential construction should be separated. From there, the goal was to measure the total dollar value of goods and services produced, the payroll generated and the employment that could be directly linked to the commercial construction industry in Alabama. To do this, Dr. Deravi’s team studied the day-to-day spending of commercial construction companies in the state, the materials and services they need in order to do business and the growth
OCT/NOV 2012
AL CONSTRUCTION NEWS
33
Why construction in Alabama matters.
$7.0B PAYROLL
150,000
$402 M
$9.6 B
DIRECT IMPACT TO EDUCATION TRUST FUND
JOBS
OUTPUT SHARE (IN STATE)
MANUFACTURING 19%
TRANSPORTATION, COMMUNICATION & UTILITIES 6%
DIRECT EMPLOYMENT
116,644 CONSTRUCTION INDUSTRY IN ALABAMA
TAXES
$139,847,711 $18,892,660 SALES TAX
WHOLESALE & RETAIL TRADE 9% CONSTRUCTION 41%
FINANCE, INSURANCE & REAL ESTATE 8% SERVICES 16%
AGRICULTURE, FORESTRY & FISHERIES 1%
MINING 0%
54,786 MINUS RESIDENTIAL CONSTRUCTION SUBSECTOR
USE TAX
$27,360,759 $402,776,888 TOTAL SELECTED TAXES
UTILITY TAX
61,858
COMMERCIAL CONSTRUCTION EMPLOYMENT IN ALABAMA
$216,675,758 INCOME TAX
(INDIVIDUAL & CORPORATE)
INDUSTRY SHARE - EMPLOYMENT
CONSTRUCTION INDUSTRY 56%
DIRECT IMPACT
VS.
TOTAL IMPACT
of Commercial Construction in Alabama
OTHER INDUSTRIES 44%
OUTPUT: EARNINGS: IMPACT (JOBS): *Full time equivalent
they stimulated at other companies. If a business needed to hire additional employees to meet the demands of commercial construction, that benefit was factored in. Only business generated in Alabama and paid to Alabama companies was counted. Sources for the study were diverse and credible. BEA reports, McGraw Hill construction starts and data from employment, payroll and the Census were included. Deravi chose to use 2010 because it was the most recent tally of U.S. Census data and did not represent an unfairly favorable snapshot of the economy.
$5.101 BILLION $3.116 BILLION 61,858*
colleges that offer trade training, which is considered essential to the future of our industry. Dr. Deravi stands by the accuracy of his
VS. VS. VS.
$9.349 BILLION $6.984 BILLION 150,000*
paints a clear picture of the impact our industry has on Alabama.” While Go Build is a recruiting tool to encourage career paths in the construction industry, Alford noted Deravi’s study should serve as a similar stimulant for elected officials. “We would like to see lawmakers assist in funding the training that results in better jobs for our people, better workers for our businesses and a better economy for our state,” he said. As Golden said, “These numbers represent the business generated within Alabama boarders. It will be interesting to calculate how much construction revenue we export as well.”
“These are by far the largest economic impact numbers I have ever crunched. I am convinced that the biggest and quickest bang for improving Alabama’s economy is through commercial construction. That is because of construction large multipliers and the amount of business that stays local.” –Dr. Keivan Deravi
STUDY RESULTS Dr. Deravi’s results were staggering. In 2010, commercial construction and the industries that feed it stimulated $9.349 billion of business in our state, and generated 150,000 full time equivalent jobs. Because of commercial construction business, more than $400 million of sales, income and utility taxes were funneled into state coffers in 2010. These tax dollars have an immediate effect on the Education Trust Fund, the largest operating fund in Alabama. ETF supports and develops public education in Alabama, including K-12 schools, four-year universities and the two-year
model and its impact on tax generation. “Due to the magnitude of the study we used two approaches. If the data converged, we knew we must be doing something right,” he said. “The margin of difference was less than .5 percent.” Construction, manufacturing, service, wholesale trade, finance and transportation were among the industries most impacted by commercial construction. FUTURE IMPACT “This is what everyone was waiting on,” said Dr. Tim Alford, Executive Director of Go Build Alabama. “The Go Build campaign coupled with this study
EXECUTIVE RECAP FROM ABC PRESIDENT, JAY REED “My summary of this study is simple: The quickest way elected officials can help Alabama’s economy recover is to help construction, an industry that directly or indirectly impacts 56% of the State’s employment. The response from the House and Senate is already overwhelming. For elected officials who need to validate their spending, it truly helps to have numbers that are clear, concise and unbiased, like those Dr. Deravi provided. In short, having the facts in hand makes our lawmakers’ job easier.”
OCT/NOV 2012
AL CONSTRUCTION NEWS
35
DoVeterans Hold A Key? by HUGH J. RUSHING
36
AL CONSTRUCTION NEWS
OCT/NOV 2012
S LONG AND AS MISERABLE AS the Great Recession has been, there are those who are looking ahead to brighter days and perhaps great challenges in finding qualified workers. One of those is Matthew Clark, director of workforce development with KBR in Birmingham. Clark says that giant construction projects are in the planning phases that will require huge numbers of workers. His job, among others, is to make sure that there are enough skilled craftspeople to staff those projects. Even with emphasis on craft skills training for teens and college-age workers there’s still a shortfall, Clark their hiring by construction companies, particularly those says. “The Central Gulf Industrial Alliance, which in Alabama and Georgia initially but even nationwide in includes shipbuilders, chemical and refinery operators, the future. power generators and pipeline constructors, predicts King hopes that by early 2013 the program will have that by 2015 there will be a need, just on the central a website up, which will provide veterans with job skill Gulf Coast, for 40,000 skilled workers.” As a for instance, requirements and where participating construction construction on the first ammonia plant to be built in companies can post openings targeting veterans. “We hope the U.S. in 40 years will soon be underway, thanks to we will be able to do presentations on construction career record low prices for natural gas as a feedstock. opportunities at Fort Benning, Georgia as well as targeting The secret weapon for the future may be veterans. veterans for construction and building science curricula at Some 200,000 vets leave active duty each year, and construction workforce development professionals are formulating plans to attract The secret weapon for the future those vets to the construction industry. Additionally, budget cuts in the military that may be veterans. Some 200,000 vets will undoubtedly be forthcoming in the next leave active duty each year, and few years mean that even more veterans may be available. construction workforce development Ben Patrick of BL Harbert International says professionals are formulating that veterans typically have qualities that the construction industry is constantly on the plans to attract those vets to the lookout for. “They have a good work ethic, they construction industry. aren’t opposed to travel, they’ve typically been trained in safety and how to watch out for their fellow soldiers and they know how to learn.” Much of Auburn,” King says. There’s even the possibility of teaching Harbert’s work is on military bases, embassies and in construction core classes at Fort Benning, which is just 43 international environments. “They are also easy to miles south of Auburn. gain security clearances for when it comes to secure Workforce development professionals say one of the projects,” Patrick points out. key components of recruitment for veterans is solving the One veteran is hoping to kick off a cooperative dilemma of reaching veterans in the first place. Matthew program between Auburn University, veterans and Clark of KBR has on his team Jamie Van Voorheis, recently the construction industry. Dan King is assistant vice hired as a training coordinator and transition assistant who is president of facilities at Auburn University and a charged specifically with targeting veterans for potential hires. retired naval captain with 28 years in the military. The KBR often provides logistics support for troops in the field Veterans4Construction program seeks to assist veterans and hopes it can facilitate contacts with soon-to-be-available in pursuing construction industry careers and facilitate veterans as they wind up their service commitment. OCT/NOV 2012
AL CONSTRUCTION NEWS
37
Vorheis says, “With the draw downs of military forces, there’s a lot of highly motivated and highly trained people who will be available to the construction industry. We need to be in the position to attract these types of workers and provide them the training and development
for veterans patterned on how the NCCER curriculum was developed some 17 years ago. “It was a great thing when we got all the stakeholders in the room and came up with a common educational path for craft training. We ought to do something
With the draw downs of military forces, there’s a lot of highly motivated and highly trained people that will be available to the construction industry. needed to add them to the workforce.” Greg Sizemore, in charge of craft development at Zachry Industrial Inc. in San Antonio, Texas and head of the ABC National Craft Construction competition, says that the military could do a better job in preparing veterans for their careers following their service. “Sometimes you need an officer right outside of the gate where these soldiers are being separated. It’d be more helpful if we were inside the gate and getting opportunities to talk with and train folks before they come out. You shouldn’t have to hire a retired general to cut through red tape.” Sizemore would like to see a program
similar to enable the training and hiring of veterans in my opinion.” Rebecca Brown, recruiting and employment manager of Brasfield & Gorrie says it can be a challenge to communicate with soon-to-be veterans, especially while they are still on active duty. “However, we do not view that as a ‘military problem’. To get our foot in the door, we have discussed organizing meet and greets and sponsored job fairs near veterans to get that conversation growing.” Brasfield & Gorrie has recently hired veterans in supervisory and management
roles. “(They) have worked out well because they have a great work ethic and are very trainable. We would like to utilize all of the great traits they have to offer including dedication, persistency and leadership skills,” says John Payne, general superintendent for the firm. Matthew Clark says he views veterans outreach as helping to create careers and not just providing jobs. “We are offering training that will provide lifetime opportunities for these men and women who have served their country, and not just jobs. We do work on six of the seven continents of the world, so there are plenty of places where we can place these folks.” The Wounded Warriors Project also has a program to put wounded veterans to work, providing counseling services and job placement. A free program allows veterans to post a resume on the organization’s website and employers can post jobs or search resumes. Wounded Warriors also has educational centers in San Antonio and Jacksonville, Florida, which provide a twelve-month program. This program combines peer support and monitoring along with physical rehabilitation and tracks leading to an associate degree or a vocational certificate in a trade.
Former F-16 pilot Dan Rooney founded Folds of Honor in 2007 following three combat tours in Iraq with the Oklahoma National Guard. Returning home from his second tour of duty on a commercial flight, Rooney was disheartened as half the flight’s passengers hurriedly disembarked even after being asked to remain seated while the casket with the remains of Corporal Brock Bucklin was taken off the plane. The foundation provides educational opportunities which otherwise would be unavailable to the families affected by military service. Recipients are a spouse or a dependent of those killed, wounded or disabled in their military service or who died with a serviceconnected disability. Folds of Honor estimates over one million military dependents have been affected by the Mideast wars
and 87% of the dependents don’t qualify for federal scholarship assistance. The Children’s Scholarship Fund offers K-12 educational funds for those killed or 90% or more disabled. The Scholarship Fund is intended to help offset the rising costs of post-secondary tuition, books, room and board, tutoring and other related expenses. ABC’s Oklahoma Chapter members donated over $850,000 of materials and manpower to construction Folds of Honor’s headquarters in Owasso, Oklahoma, just north of Tulsa. The $1.3 million dollar building houses the staff of the organization. ABC Oklahoma was recognized by the American Society of Association Executives and the Center for Association Leadership for their efforts with an Award of Excellence. The Foundation sponsors a grassroots golf tournament program on over 5,000 golf courses nationwide (Rooney is a golf course owner and PGA professional). For instance, the Country Club of Sapphire Valley in North Carolina raised $47,000 in scholarship money through a tournament, live and silent auctions and sponsorships.
Folds of Honor Offers Scholarships and Assistance to Veteran’s Dependents Folds of Honor has delivered 2,539 post-secondary scholarships and 99 children’s scholarships. We Recommend: www.foldsofhonor.org
Birmingham to Host
NATIONAL
CRAFT CHAMPIONSHIPS AND STUDENT CONSTRUCTION MANAGEMENT COMPETITIONS by Hugh J. Rushing
B
IRMINGHAM WILL PLAY host to the 2013 and 2014 National Craft Championships (NCC) as well as the Student Chapter Construction Management Competition (CMC), both brought to the Magic City by Associated Builders and Contractors national office. Vance Fulkerson of Robins & Morton and a member of the national ABC board, overheard at a Washington meeting that the association’s multi-year contract to hold the events in San Antonio was about to expire. “The staff was looking at Atlanta, Baton Rouge, St. Louis and Nashville. I told them they really ought
42
AL CONSTRUCTION NEWS
OCT/NOV 2012
to look at Birmingham. We’ve got a long history of being a blue-collar worker town, that we are headquarters for a large number of nationally recognized constructors, and have a committed and active ABC local chapter.” Returning to Birmingham, Fulkerson got busy hosting a familiarization visit for the competition planners. The result is as many as 1,000 persons– craft professionals, their families, and students from engineering and building science programs from around the U.S.– will descend on Birmingham in the spring of 2013 and 2014. The competition will be held at the Birmingham-Jefferson
Civic Center and hotel space has been booked at the Sheraton and the soon-tobe opened Westin in the entertainment district. “We are lining up volunteers from Birmingham ABC members to devote their time and efforts to make sure this is an incredible event,” Fulkerson says. “The Greater Birmingham Visitors and Convention Bureau just did a superb job in helping sell our city to ABC and we believe we will get a good turnout. Birmingham has competitive airfares, meal costs and hotel rooms and a lot to offer.” Dr. Mittie D. Cannon is director of training and workforce development with the Power and Industrial division of Robins & Morton. As a craft electrician and welder before moving into management, Cannon said that she thinks the competition will remind Alabama how important trade training is in the state. “We need to emphasize the need for well-trained crafts professionals. These are the people who keep our lights on, our water flowing and a thousand other things that many take for granted each day.” Cannon has a history of mentoring and preparing contestants in the Craft Championships. In 2012 the top welder award went to Seth Lunsford, of Robins & Morton. Cannon also prepped the first woman, Holly Thomas, to win a welding award in the NCC competition as well. “I’m always on the lookout for young talent for this competition,” Cannon said. “I just thank the late Ted Kennedy who really gave me and other women a chance to use their talents and skills in the trades. I wish he could be here to see it.” Greg Sizemore, senior manager of craft development for Zachry Construction in San Antonio, Texas and chairman of the NCC committee for ABC national, says that Birmingham is an ideal spot for the championships. “It will bring a lot of attention to a town that is known throughout the industry as one of the hot spots for construction headquarters.” Sizemore also praised Alabama’s Go Build coalition that is working to attract youth into construction craft professions through a unified campaign of craft education. “We think the competition will be highlighting how Alabama is a leader in this area,” Sizemore observes.
BL HARBERT BL HARBERT
BL HARBERT BL HARBERT
Technology T R E N D S F O R 2 013
44
AL CONSTRUCTION NEWS
OCT/NOV 2012
OCT/NOV 2012
AL CONSTRUCTION NEWS
45
Technology
model data, managing the process of making changes and leveraging that data toward business goals and objectives. An information exchange platform enables facility owners to extend their business processes and workflows to their mobile devices and to their business partners using industry standards. Utilizing an information exchange across project stakeholders enables easy collaboration across systems and companies.
Ultimately, success depends on having sound business processes, tools and protocols for collaboration. The
Building Data Management The Integrated Model State A Facility Owner’s Guide to Building Information to Leverage the “I” in BIM Project Delivery
O
by MICHAEL RUIZ
Operating and maintaining high performance buildings requires a sophisticated organization. With careful preparation and planning, these facilities can work wonders. Taking care of them requires a well-managed project delivery system, complex business processes and an expert operation and maintenance (O&M) team. Contractors, Architects, and Engineers have long embraced BIM, but ultimately the BIM models they create will belong to the building owners. As such, it is imperative that they have organizational processes and technology-enabled tools to facilitate the transfer of information from design and construction to operations. Together these processes and tools will enable reporting and calculation of the “big data” they gather. We refer to
46
AL CONSTRUCTION NEWS
OCT/NOV 2012
this concept of project delivery as the Integrated Model State or IMS. The central component of the IMS is the BIM Data Specification. This document outlines the owner’s BIM project information requirements for the design and construction teams identifying the owner as the primary data consumer and the project delivery team as the primary data author. In this specification, all major tasks and deliverables associated with the creation and delivery of BIM data are described by the owner for the AEC community.
Articulating BIM requirements is only half of the battle. To fully realize the
promise of BIM, owners must also learn how to organize model data as it arrives. This means extracting and validating
information exchange platform approach leads to sound facility data for owners. Building owners require clear project delivery strategies, data management processes and workflows that ensure quality control actions to manage project information. It is imperative that owners have tools to facilitate project delivery from design and construction to operations. BIM project validation, the information exchange platform, owner PM teaming, project delivery and mobility are the basis of the integrated model state. A systematic approach to BIM for facilities management promotes connections to corporate real estate business objectives, operations management, data interoperability of systems, building automation controls and physical devices to link these objectives together in a smarter way.
About the Author
Michael Ruiz is Vice President of BIM Strategies for Applied Software (www.asti.com), the largest Authorized Autodesk Reseller in the Southeastern United States and one of the nation’s leading providers of BIM services including BIM project management, analysis, application training, modeling and business goals alignment with technology practices. Michael can be reached at mruiz@asti.com.
For over 30 years, Applied Software has partnered with commercial building professionals driving success and business growth. By aligning technology solutions with business goals, Applied Software provides leadership and solutions driven strategic planning to construction, facility management and building design professionals. Recognized throughout North America by private businesses, state, federal and local government agencies as industry experts in building data management, information modeling and performance analysis. Is your business ready to evolve?
Get to know your Applied Software strategic account manager today. Pass your competition tomorrow.
Better Workflow. Better Insight. Better BUILDINGS. design construction fabrication manufacturing asset management facility operations All of the above are impacted by the continually evolving advancements in technology and business practices. Applied Software and our team of registered architects, certified application specialists, IT technicians and business leaders are at the forefront of technology advancements. The experienced professionals at Applied Software are here to help you adapt and synchronize your business processes with your objectives.
• • • •
CADD (Computer Aided Design and Drafting) Digital Prototype (for manufacturing) Facility Life Cycle Management Lean Construction
• • • •
BIM (Building Information Modeling) Simulation Integrated Project Delivery Consulting
Consulting Services Software Go Further 1.800.899.2784 www.asti.com
OCT/NOV 2012
Autodesk®
Platinum Partner
AL CONSTRUCTION NEWS
47
A HISTORY OF MOVING ALABAMA FORWARD. The Dunn companies have proudly served Alabama and the Southeast since 1878. Our dedication to growth and progress spans five generations of family leadership. From road building to construction to real estate, we continue to enhance our services. And we approach each project with a commitment not only to our client, but also to the generations to come. dunn-companies.com
A S S O C I ATE D B U I L D E R S & C O NTR A CTO R S
News & Notes
Alabama BizCon 2013 will be held at the Ritz-Carlton lodge at Reynolds Plantation (pictured here) in Greensboro, Georgia.
OCT/NOV 2012
AL CONSTRUCTION NEWS
49
FUTURE LEADERS in CONSTRUCTION by: MEGAN BEAVERS
F
FUTURE LEADERS IN CONSTRUCTION (FLIC) IS A series of sessions Associated Builders & Contractors Alabama offers the next generation of leaders in the construction industry. FLIC is an opportunity for the industries’ best and brightest to prepare for headship. These sessions encourage both personal and corporate growth and allow every individual the opportunity to become a better leader. Guest speakers are chosen based on their passion and success in helping companies improve their businesses through the teaching of foundational leadership principles. FLIC is currently going through its eighth successful year.
This year’s selected industry speakers were:
chuck brewer Bright Future Project Engineer
richard brown Building & Earth Sciences Senior Materials Engineer
Deepa Bhate Building Earth Sciences Corporation Chris Kramer Brasfield & Gorrie
jamie bush
Danny Rodgers Dunn Investment Group
Landscape Workshop Business Development
Craig Beatty C.S. Beatty Construction We Recommend: abc-alabama.org/FLIC.aspx Deepa Bhate is the Founder & President of Building & Earth Sciences Inc., a Birmingham based consulting engineering firm specializing in geotechnical, environmental and construction materials testing as well as special inspection services. Deepa founded the firm in 1999. Since then, it has grown to 180 employees in 10 offices across eight different states. Building & Earth Sciences Inc. with Deepa
50
AL CONSTRUCTION NEWS
OCT/NOV 2012
nathan cauley Brasfield & Gorrie Project Manager
News & Notes sommer coleman
kevin cordell
lance eden
michael farley
University of Alabama Project Manager
Robins & Morton Mechanical Superintendent (Start Up, Construction, Project Management
percy gill
New Millenium Enterprise Principal
Bhate at the head has been ranked the 63rd fastest growing engineering firm in the nation with estimated annual sales of over $17 million. Jesse Golden with Robins & Morton spoke on his take away from the time spent with Deepa. “She was very focused on relationship building and the importance of effective leaders constantly building and developing existing relationships.” Jeff Jantz is an employee at Brasfield and Gorie. After his time in session with Bhate he could easily explain the
Hardy Corporation Project Coordinator
Premier Services Mechanical Estimator
jesse golden Robins & Morton Assistant Project Manager
Reservations for those interested in this curriculum are recommended. For more information on the 2013 Future Leaders in Construction and the FLIC alumni group, please contact Charles Hall at charles@abc-alabama.org construction industry. He develops strategy and best-in class operations for his clients in building profits. Schug has over ten years of experience in his job and excels in job integrating operation, sales and customer service. He currently serves as Chapter President of the Florida West Coast Design Build Institute of America (DBIA) and is the treasurer of the Florida Society of American Military Engineers. “This is the next generation of our construction industry leaders, and this chapter has some companies that lead the industry in it, “ says Schug, in reference to the attendees at his FLIC session. He believes that these are the people who are going to make a huge impact on the future of the industry. Schug had many goals in his presentation, but he hoped the biggest take-away would
“[Deepa Bhate] was very focused on relationship building and the importance of effective leaders constantly building and developing existing relationships.” underlying message. “The focus was more on actual traits.” He said that they spent time on just learning the different traits that are out there in the leadership world. James C. Schug facilitator and instructor for the FLIC curriculm is a senior consultant at FMI, management consultants and investment bankers for the engineering and
OCT/NOV 2012
AL CONSTRUCTION NEWS
51
john goodner
trent hall
brandon hamer
jimmy isaminger
jeff jantz
josh kirkland
Hoar Construction, LLC Project Manager
Superior Mechanical Plumbing Estimator
Brasfield & Gorrie Project Manager - Federal Division
tres jernigan Brasfield & Gorrie Senior Project Manager/P.E.
scott johnson Hardy Corporation Project Manager
52
AL CONSTRUCTION NEWS
OCT/NOV 2012
University of Alabama Project Engineer
David Allen Company, Inc. Chief Estimator
Brasfield & Gorrie Project Manager
be that leadership is more than just smiling and delegating tasks. He wants these future leaders to know that it is about understanding people and their perspective. A lot of Schug’s presentation was spent discussing generational and personality differences. Another important key was to understand how to lead best after understanding your own personality. Schug said that one of the biggest issues future leaders face is the uncertainty in the market and how complex the construction industry has become. However, these presentations are designed to equip these individuals with tools to lead their organizations through even the most difficult times. Not only are these companies receiving their employees back with grown leadership skills, but they are also getting an opportunity to network with some of the most clever and unsurpassed future industry leaders. “You can create long term bonds with some of the industries best, “ said Schug. David Allen Company employee, Jimmy Isaminger, had only positive words on Schug’s insight. “The biggest thing I’ve taken away is being able to interact with other
News & Notes
mike land
marty martin
steven mercado
taylor morrow
bryan myers
lance phillips
Central Fire Protection Estimator/Project Manager/Collections/ Customer Relations
University of Alabama Project Manager/Field Coordinator
Brasfield & Gorrie Project Manager
subcontractors and general contractors…to exchange ideas that have helped me mold my own ideas and techniques.” Jeff Jantz discussed the importance of distinguishing between multiple types of leaders, which he learned from Bhate at his first session of FLIC. Following his session with Schug, Jantz said that he had learned that it was important to determine what kind of leader you are in order to succeed. “We’ve learned about figuring out what your traits are and how to incorporate those into certain scenarios,” said Jantz. “I’ve identified the traits that I’ve got and how to harness them. But I also hope to continue learning and developing new traits that I’ve seen in other leaders. So, I guess really I just have an overall sense of learning how to put all the tools together and become a more effective leader.” Leadership is demanding, but ABC is dedicated to finding speakers to touch on all the traits and techniques required
BL Harbert Project Manager
M&A Electric Co. Project & Estimate Manager
Premier Services Electrical Estimator
for successful leadership. One such important leadership technique is learning to implement faith into the workplace. Danny Rodgers with Dunn Investment Company recently presented on faith and the marketplace. “My hope is that the class understands that you cannot separate your faith life with the marketplace,” says Rodgers. I hope I made the case that the two are seamless, and we must live out our
“ The biggest thing I’ve taken away is being able to interact with other subcontractors & general contractors…to exchange ideas that have helped me mold my own ideas & techniques.” faith in our business.” He applauded FLIC stating that an investment toward emerging leaders in the construction industry is the highest and best use of money and time. “Nothing else can rival our investment in young men and women who have an interest
OCT/NOV 2012
AL CONSTRUCTION NEWS
53
in the construction industry. ‘To whom much is given, much is required’ applies to all of us that have been blessed by the fruits of the contracting profession,” says Rodgers. “It is our duty and obligation to share our time, the talents and gifts God has given us and the resources that have been entrusted to us from the shareholders of our businesses.” During his presentation Danny Rodgers shared what he believes to be the “Ten Foundational Stones for Effective Leadership”: Humility; Servant’s Heart; Vision; Prudence; Justice; Courage; Temperance; Counsel; Commitment; Communication. Rodgers spent the rest of his presentation breaking down these ten points. Speakers like Rodgers and a belief in a solid foundation are what make FLIC stand apart from the rest. “The name given to this group by our ABC chapter says it all – ‘Future Leaders in Construction.’ These young men and women who are our future will live in a world that is technologically driven and at a rapid fire pace. They will be challenged to live out their faith in ways that we never imagined,” says Rodgers.
Students get knowledge of substantive material. With around thirty other future leaders in the classroom, FLIC provides a great networking opportunity. You get exposure to exactly what it is that ABC does for you as a member. We Recommend: abc-alabama.org/FLIC.aspx
daniel rives
chad reagin
michael skrobis
anthony sorace
mitch stephens
shane swords
Robins & Morton Estimator
Robins & Morton Project Manager
Hardy Corporation Project Manager
54
Pugh gave three reasons for the success of FLIC and the opportunities it provides:
AL CONSTRUCTION NEWS
OCT/NOV 2012
Southern Carpet & Hardwood Project Manager
Goodwyn, Mills, Cawood Project Professional
Brasfield & Gorrie Project Manager
News & Notes “Staying true to these ten foundational stones will produce sustainable leadership well into the new millennium.” Another speaker, David Pugh, speaks on the Business-Law section and legal topics of interest at all of the FLIC sessions. Pugh has been a part of the overall direction of FLIC for a while now as well. Pugh said that the Future Leaders in Construction is very comparable to other programs such as the Leadership Birmingham class and Birmingham Business Journal’s Top Forty Under Forty. He said these programs, FLIC included, are created to identify the top young professionals from among membership and to give them the opportunity to enhance their leadership. Pugh continued by saying that there is often a waiting list to become FLIC student, noting that there is more demand than there are seats. “One of the things we want to do long term is to keep them active as alumni graduates of the program,” says
Pugh. Currently there are two FLIC divisions, 101 and 102. 101 is the entry level division created to give perspective of leadership skills in terms of interaction with others, whereas 102 was implemented to concentrate on selfawareness. The formats of the two divisions have deliberate structures to compliment each other. Pugh noted the goal of the alumni program as an opportunity for graduates to potentially meet for future leadership seminars, fundraising and legislative opportunities.
“Some people sometimes think in terms of, ‘What am I getting for my dues that I pay to ABC? And I think its one of the best valueadded options that ABC provides for its members, an opportunity to get that very specialized training for their young people.”
bryan thomas
zachary white
daryl whitehurst
lauren wybenga
shaw zimmerman
james c. schug
Bradley Arant Boult Cummings, LLP Associate
Hoar Construction, LLC Project Manager
Caddell Construction Project Engineer
BL Harbert Project Manager
Caddell Construction Quality Control Representative (Architectural & Civil), Project Engineer, & Project LEED & Recycling Coordinator
FMI Senior Consultant jschug@fminet.com
OCT/NOV 2012
AL CONSTRUCTION NEWS
55
Congratulations to Mississippi ABC Safety Professional of the Year, Mark Willcutt, CHST, of JESCO, Inc. MARK IS PICTURED HERE WITH DAVID SHOEMAKE, chairman of the MABC Safety Committee. Mark has been with JESCO for 30 years and holds the position of corporate safety director. He resides in Fulton, MS with his wife Nancy. Mark is an avid music enthusiast. He is also a professional musician and studio drummer. He has recorded with many well known artists over the years including several sessions in Alabama’s famous Muscle Shoals area recording studios. JESCO’s corporate office is in Tupelo, MS with additional divisional offices throughout NE Mississippi. Its Alabama Construction & Engineering Division central office is located in Montgomery, with a satellite office in Mobile.
BIZCON
2013
JESCO, Inc.
ALABAMA
Event Promises A Change in How Construction Conventions are Conducted WHETHER AN AMALGAM OF BUSINESS CONNECTIONS or business CONstruction, ABC of Alabama’s BizCon 2013 is intended to change the way in which constructors think about conventions. The compact Thursday evening and Friday event is set for July 18-19, 2013 plans to connect ABC-Alabama members with top economic development personnel from Georgia, Tennessee, Mississippi as well as Alabama. It will be held at the Ritz-Carlton lodge at Reynolds Plantation in Greensboro, Georgia. Jay Reed, President of ABC-Alabama pointed out that today’s business climate demands that meetings be focused and resultsoriented. “We also need to think regionally. ABC members do work in more places than
Alabama and the panhandle of Florida. We want to encourage this regional thinking especially by having economic development professionals from surrounding states update the attendees. I keep coming back to relevance. Conferences are an investment, money spent, and we have to deliver a return on their investments. That is why we have redefined the word convention. That definition is BizCon.” Three educational sessions will feature in depth presentations from decision makers. Meal, receptions and a golf tournament will provide time for close networking for attendees and economic development professionals.
“ABC of AL is changing the way you think about conventions, we have the future of what conferences will look like already planned for you. The new breed of conventions will be all about Business Connections and providing undisputable value or as we now call it — BizCon 2013. The location, spa and golf speak for itself… It is the Ritz. The value for your registration fee, your money, is the connections and contacts we have assembled. Join Alabama’s leading contractors for networking and in depth and unprecedented economic development presentations from four southeastern states... Again welcome to BizCon2013.’’ Bruce Taylor Marathon Electrical Contractors, Inc. 2013 ABC Chairman of the Board
IVAN LEONARD The #1 GM Business Central Dealer in Central Alabama.
We carry a full Line of upfitted vehicles ready for the workplace, with special pricing for ABC-Alabama Active Members.
Ivan Leonard Chevrolet
Highway 31 South in Hoover, AL (1.5 Miles North of the Galleria) t. 205-823-5120 f. 205-823-9311 www.commercialtruckssoutheast.com
800-240-5100
Ask for the Commercial Department Bill, Hunter, Richard, Johnny & Brent
Faces
Going Places
1
HYDE ENGINEERING Hyde Engineering has announced the addition of four new members to its team: Hannah Payne, electrical designer, Casey E. Bonds, CAD designer, Thomas Dodds, engineer, and Helen Todd, business development manager. Established in 1995, Hyde Engineering is one of the only women owned electrical engineering firms in Alabama. “We are excited about the new additions to our company,” said Hyde Engineering President Liz Hyde, P.E. “Each person is going to fill a unique need as we look to expand our business and the scope of the projects we work on.”
2
1. CASEY E. BONDS brings more than 16 years of engineering design experience to the table working in various firms across the state. 2. HANNAH PAYNE is a 2010 graduate of Auburn University with a degree in Polymer and Fiber Engineering, she is experienced in lighting design and exterior lighting data collection.
3. THOMAS DODDS has more than 40 years experience in the industry with a particular emphasis on electrical equipment application and distribution system design and analysis. He holds both a bachelors and masters degree in Electrical Engineering from Pennsylvania State University.
3
4. HELEN TODD has approximately 18 years communications experience, holds a bachelor’s degree in Communications from the University of Alabama and is seeking her master’s degree in Information Engineering Management from the University of Alabama at Birmingham.
News & Notes
4
6
VOLKERT, INC.
5. KENNETH PAUL BRADLEY, has joined Volkert, Inc. as Project Manager after serving 37 years with the U.S. Army Corps of Engineers. Bradley retired from the Corps as chief of environmental resources and assistant chief of the planning division in Mobile. Bradley’s specialties include environmental analysis, dredging and dredged materials management, beneficial uses of dredged materials, emergency response and environmental restoration. He has a BS degree in civil engineering from the University of South Alabama and is a graduate of the U.S. Army Corps of Engineers Planning Associates Program (equivalent to a Master degree in water resources planning).
5
6. GUY E. O’CONNER promoted at Volkert to senior vice president and administrative officer for the company’s gulf region. A Mobile native, O’Conner graduated from Auburn University and joined Volkert in 1985. He has served as project manager on some of the firm’s major transportation projects in several states. With approximately 600 employees, Volkert provides environmental, engineering and design services throughout the Southeast, Mid-Atlantic and Midwest U.S. The company currently operates 24 offices in 11 states and Washington, DC.
Alabama Electrical Contractors Board
AECB
Have you received your state electrical contractors or journeyman electricians license from the Board through Local Examination Waiver Opportunity? If not, you need to submit your application before the August 31, 2012 deadline. You can obtain applications and information on the Board’s web site at www.aecb.alabama.gov or contact the Board Office at 334.420.7232
2777 Zelda Road | Montgomery, AL 36106
Official Notice To Alabama Contractors BP has reached a settlement with the court system that involves construction related companies NORTH and SOUTH of I-10 (Zones D & C). The details of the settlement are clearly defined and will certainly impact contractors licensed in Alabama. ABC has made arrangements for Bainbridge Mims Rogers & Smith, LLP and Cunningham Bounds, LLC law firms to assist our members and the construction industry with the logistics surrounding the settlement. The map below outlines the areas included in the settlement.
For details and to determine if you qualify, contact: Nick Gaede, Jr. (205) 868-4108
“No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.�
Steve Olen (251) 471-6191
61
AL CONSTRUCTION NEWS
OCT/NOV 2012
Haul road to profit. Let’s Work. Being first doesn’t make us better – building superior equipment does. As the undisputed champ of articulated hauling, Volvo is ready to help you win on every job. Look to Cowin Equipment Company for the best in Volvo haulers. Deep mud, brutal terrain, rain – it’s not going to stop you in your Volvo hauler. Visit Cowin today and start hauling in profits.
www.cowin.com
Volvo Construction Equipment 64
AL CONSTRUCTION NEWS
OCT/NOV 2012
Mobile, AL (251) 633-4020
Pensacola, FL (850) 479-3004
Madison, AL (256) 350-0006
Montgomery, AL (334) 262-6642
Atlanta, GA (404) 696-7210
Oxford, AL (256) 832-5053
Illustration by Name Here
1-800-239-2694
Birmingham, AL (205) 841-6666
photograph by NAMEGOES HERE