building industry by susan whitney

Building on Experience to Produce Quality Results

Maui Arts and Cultural Center - Yokouchi Family Pavilion and Courtyard

800 Bethel Street, Suite 401 Honolulu, Hawaii 96813 Phone (808) 521-1855 | Fax (808) 521-1513 www.honolulubuilders.com

Volume 57 Number 11 MARCH 2011

Structural repair at Piers 9-11, page 36

Features:

site preparation 14 How are sitework contractors being affected by the burgeoning economic recovery? Are they beginning to reap some early benefits? What projects are waiting in the pipeline? We check in with key executives to get their predictions and forecasts.

News Beat:

Union Names Builder of the Year

Young Brothers Goes Green 7

GCA Banquet Honors Members 8

RevoluSun Expands Services 10

Kiewit Building Group Relocates 11

Get RRP Certified 58

Finance, Bonding & Insurance 30 What is the current situation regarding available financing for construction and development? What are the lenders looking for? How stringent is the bonding process? We answer these questions and more, plus offer in-depth advice from the pros on obtaining the financing and bonding you need.

Datebook

Guam 44 In this quarterly report, we delve into the history and services of local builders on Guam. They explain their mission on the island and how they fit into the excitement surrounding the U.S. military buildup. We also look back at Guam’s top builders of 2010.

Departments: 4

Architects Corner 9

Contracts Awarded 12

Spotlight on Success: St. Louis School Learning and Technology Center 28

Hot Topic: Insurance Lawsuit 43

Concept to Completion: MACC Yokouchi Family Pavilion and Courtyard 54

Low Bids 57

Coming in April On the Cover: For the First Wind Kahuku project, Goodfellow Bros. did the form work and poured 5,500 cubic yards of structural concrete for the foundation of the 12 wind turbines. (Photo courtesy of Goodfellow Bros., Inc.; cover design by Susan Whitney.)

Who are Hawaii’s Developers? What are their projects and plans? What is their commitment to Hawaii? We look at local companies, old friends from the mainland and those new to our shore. April B.I. also includes an update on Lumber and Wood, an important industry sector. If you are involved in night or weekend work, you’ll enjoy Odd Hours/On Schedule. And we take you Inside the ABC (Associated Builders and Contractors, Hawaii Chapter). All in all, a full and informative issue!

Datebook Associated Builders & Contractors, Hawaii chapter • Solar Course for Contractors. March 7-11; 8 a.m. to 4 p.m. each day. Solar Training Institute. Cost: $1,795 for members; $1,995 for nonmembers. Contact Jonathan Young at 845-4887, e-mail jonathan@abchawaii.org or visit www.abchawaii.org.

Dire Consequences The Group Builders vs. Admiral Insurance decision has caused a stir nationwide with the landmark precedent it has set and the frightening effects that may stem from it. While industry and insurance groups are starting to take measures to hinder or avert the potentially disastrous consequences, nothing has been settled yet. Our Hot Topic this month – found on page 43 – tackles the issue head on, providing background information and summarizing the repercussions as well as the actions that have been taken so far.

Nearly Here More U.S. EPA (Environmental Protection Agency) inspectors will soon be hitting our shores and we want to make sure you’re prepared. These investigators have the authority to enforce the Renovation, Repair and Painting (RRP) Rule that came into effect last year with fines of up to $37,500 per violation. The most dangerous assumption you can make about this rule is that it really only affects painters. Not true. Clear your misconceptions; read the story by Nate Seward of Criterion Environmental Training on page 58. Then, if you’re not already, get certified. They arrive in May.

Monumental Milestone

American Institute of Architects, Honolulu chapter • AIA Honolulu Celebrates New Architects 2011. April 6; 6 p.m. to 8 p.m. Pearl Ultralounge, Ala Moana Center - Hookipa Terrace, third level. Register online. Firm/company support is $225 (includes four tickets); individual member ticket is $30 per person (AIA, associate, allied); and individual nonmember ticket is $60 per person. • Downtown Firm Crawl. April 15; 4 p.m. to 8 p.m. various firms in downtown Honolulu. Check AIA Web site for PDF map of the firm locations and addresses. Contact Bonnie McIntyre at 545-4242 or visit www.aiahonolulu.org.

Building Industry Association of Hawaii • Construction Quality Management (CQM) for Contractors. March 15; noon to 4 p.m. Construction Training Center of the Pacific (CTC Pacific). Cost: $95 for members; $125 for nonmembers. • 40-hour Safety Hazard Awareness Training for Contractors. March 21, 25, 26, 28 and April 1 (must attend all days); 7:30 a.m. to 3:30 p.m. CTC Pacific. Cost: $350 per member; $475 per nonmembers. Cost includes course materials (EM385 manual). Contact Lea Kanaya Wong at (808) 6297506 or e-mail LKK@biahawaii.org. • 2011 Stew Team Call for Entries. March 22; 6 p.m. to 8 p.m. St. Andrew’s Priory School, Ylang Ylang Courtyard. Register online. Contact Clarice Watanabe at (808) 629-7503 or e-mail ckw@biahawaii.org. • Basic Cost Estimating for Contractors. March 31, April 5 and 7; 9 a.m. to noon. CTC Pacific. Cost: $180 per member; $245 per nonmembers. Contact Lea Kanaya Wong at (808) 629-7506 or e-mail LKK@biahawaii.org. Contact Clarice Watanabe at 847-4666 ext. 200, e-mail events@ biahawaii.org or visit www.biahawaii.org.

Certified Commercial Investment Member, Hawaii chapter • Financial Analysis for Commercial Investment Real Estate CI 101. March 24, 25, 28, 29 and 30; 8:30 a.m. to 5:30 p.m. University of Phoenix-Topa Tower Rooms 101/102. CCIM Hawaii members pay $1,040; registered national candidates pay $1,040; nonmembers pay $1,495. For more information visit www.ccimhawaii.org.

Contractors Association of Kauai • Best Management Practices (BMPs) workshop. March 8. Kauai Beach Resort. Advance registration required. • 19th Annual Home Show. April 8 to 9. Kauai War Memorial Convention Hall, Lihue. Exhibitor packets available. Show is free and open to public, including construction industry professionals. Contact CAK at (808) 246-2662.

By the time you read this, the groundbreaking ceremony for the Honolulu High-Capacity Transit Corridor project, which was scheduled for Feb. 22, will have likely already occurred. “This is a time to celebrate,” said Mayor Peter Carlisle when the date was set. “Many people have waited so long and worked hard to finally get to this point. This project will provide thousands of jobs for our local workforce … and pave the way for an exciting and better future for Oahu residents.”

Judith Shinsato

General Contractors Association of Hawaii • First Aid/CPR classes. March 18; 7:30 a.m. to 11:30 a.m. GCA conference room, first floor. • Safety Trained Supervisor Prep Course. March 26; 7:30 a.m. to 3:30 p.m. GCA conference room. Cost: $175 per member; $225 per nonmember. • NAVFAC Mandated Training Certification. April 30, May 7, 14, 21 and 28; 7:30 a.m. to 3:30 p.m. GCA conference room. Cost: $300 per member; $450 per nonmember. Contact Gladys Hagemann at 833-1681, or visit www.gcahawaii.org.

University of Hawaii College of Engineering 2011 Engineering Banquet. April 14; 5 p.m. to 9 p.m. Hilton Hawaiian Village, Coral Ballroom. For more information visit web site or call Jean Imada at 956-5112 or e-mail jimada@hawaii.edu.

4 | Building Industry | MARCH 2011

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Building Industry Digest of Hawaii, published monthly as Building Industry© 2011. Trade Publishing Co. Single copy: $4. Subscriptions available at $25 per year. For more information about subscriptions, advertising or editorial contributions call (808) 848-0711; fax: (808) 841-3053. Statements of fact and opinion made in stories, columns or letters submitted by freelance writers and other contributors are the responsibility of the authors alone and do not necessarily reflect the opinion of Trade Publishing Co.

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NewsBeat

Union Names Builder of the Year The Hawaii Carpenters Union (HCU) honored Glen Kaneshige, executive vice president of Nordic PCL Construction, Inc., with its 2011 Outstanding Union Builder Award during a Jan. 11 reception hosted by the Pacific Resource Partnership (PRP). The honor is given annually to a contractor that has made exceptional contributions to union construction and labor-management relations in Hawaii. “This award is a great honor, and a testament to the kind of collaborative relationship that exists today between labor and management,” says Kaneshige. “As a management representative (on various union trust funds), I’ve enjoyed the relationship with the construction unions, and I applaud the (HCU) and the (PRP) for setting the example for collaboration.” Kaneshige’s father, Mits Kaneshige, led Nordic Construction in the 1970s and eventually acquired the company. In high school, his son worked at Nordic during summer breaks, returning to the company as a project engineer after earning his master’s degree. He went on to become project manager, operations manager, executive vice president, and finally, president of the company in 1999. In 2008, Kaneshige helped oversee the merger between Nordic and PCL Construction Services. Prior to the merger, Nordic Construction and PCL Construction

From left: Kyle Chock, former executive vice president of PRP and now president of Bishop Holdings Corp.; Mits Kaneshige, Glen’s father and former head of Nordic Construction, Ltd.; Glen Kaneshige, executive vice president of Nordic PCL Construction, Inc.; Ron Taketa, business manager and financial secretary of the Hawaii Carpenters Union; and John White, current executive director of PRP first partnered on the design-build of the $200 million Hawaii Convention Center, the first of many jointventure projects to follow. “Glen Kaneshige is truly deserving of the Outstanding Union Builder Award,” says John White, newly appointed executive director of PRP (see sidebar below). “His hard work, experience and dedication have made him into one of the great leaders of Hawaii’s construction industry.” Ron Taketa, financial secretary and business representative for the HCU, notes, “Glen Kaneshige is very much the contemporary manager of people, with a collaborative style to get things done, across not just our local industry, but the global marketplace we confront today.”

PRP Names New Director PRP recently hired John White as its executive director. White will be directly responsible for developing and managing programs that support unionized construction, fostering strategic relationships within the business community and identifying new markets for growth. He previously served as chief of staff to U.S. Rep. Mazie Hirono and as a legislative aide to former councilmember Duke Bainum. In private sector experience, he has served as executive director of the Atherton YMCA and as a project manager for the Saint Consulting Group, a land-use consulting company. “John’s experience in the public and private sector makes him both attuned to the challenges Hawaii faces today and uniquely qualified to lead PRP,” says Ron Taketa, financial secretary and business representative for the HCU.

New Leaders for HLPA

Jeff Browning

The Hawaii Lumber Products Association (HLPA) announced in January its new board of directors for 2011. The leaders include: • President: Jeff Browning, Sause Bros. • Vice President: Hap A. Person, Honolulu Wood Treating, LLC

• S ecretary: Connie Smales, Plywood Hawaii, Inc. • Treasurer: Robert B. Kayser, Jr., Gentry Builders, LLC The organization’s directors are: Chris Coalson, iLevel by Weyerhaeuser; Michael K. Fujimoto, HPM Building Supply; Jim Keller, Armstrong Builders; Alan Labbe, D.R. Horton; Dave Rinell, Rinell Wood Systems, Inc.; Ken Laughlin, Pacific Wood Preserving Companies; and Art Owada, Honsador Lumber LLC.

6 | Building Industry | MARCH 2011

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Island Pacific Energy, LLC completed the installation of a 116 kilowatt (kW) photovoltaic (PV) system for Young Brothers, Ltd. on Jan. 26 at its Pier 40 location at Honolulu Harbor. To pay for the system, Island Pacific Energy provided innovative financing that enabled Young Brothers to acquire the system for no money down with immediate savings. “We are extremely pleased with the results,” says Glenn Hong, president of Young Brothers. “Island Pacific Energy was able to deliver the complete package we were looking for: excellent value and terms, close attention to our specific needs, fast and professional installation and innovative financing.”

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• Crystalline Panels The 116 kW system consists of 432 Suntech solar modules on the roof of the maintenance building. It • Thin Film Panels provides nearly 70 percent of™ the electrical™ demand of • Penetration Mounted A new green outlook on our Red Shield Warranty. A new green outlook on our Red Shield Warranty. the structure, more thaninis“greener” 180,000 kW hours of systems, Everyone in Everyone the commercial building industry is making an investment systems, inproducing the commercial building industry making an investment in “greener” • Ballast Mounted materials and building practices. Now, Firestone is backing your investment in the future with an materials andyear, building practices. Now, Firestone is backing your investment the future with an electricity each which is System enough to* power more inthan investment of our own: the Firestone EnviroReady™ Roofing and Warranty. Multiple planting options—one great warranty that c investment of our own: the Firestone EnviroReady™ Roofing System and Warranty.* • Self Adhering This comprehensive program lets building owners install a high quality conventional roof today 1,000 light bulbs for antomorrow. entire year andwarranty is equivalent to and upgradeThis it with green roofing technology Firestone’sowners Red Shieldinstall keeps quality conventional roof today comprehensive program lets building a high your new EPDM or TPO roof “enviro-ready” for responsible upgrades for up to 7 years after initial burning more than 15,000 of gasoline. and it with green roofinggallons technology tomorrow. VEGETATIVE ROOF SYSTEM installation, so youupgrade can go green in a way that matches your needs and your budget. Firestone’s Red Shield warranty keeps your new EPDM or TPO roof “enviro-ready” for responsible upgrades for up to 7 years after initial V e g e t a t i V e R o o f S y S t e m Thanks to Firestone, now you can plan future includes environmental roofing upgrades, fully confident that The PV installation a monitoring and installation, you can a wayRed that matches needs you are installing not just theso products, butgo thegreen industryinleading Shield Warrantyyour coverage you and your budget. Finally, a hassle-free way to select, install and™ extensive maintain a SkyScape System SkyScape int need to maintain system everything that that will go under your next “green” roof. Thisto exclusive program coversenergy reporting enables track the Thanks Firestone, you canupgrades. planusers future environmental roofing upgrades, fully confident that vegetative roof with SkyScape Extensive & Intensive Systems. inspections before andto after installationnow of new green Firestone also provides premium youwith are installing not just the products, butyou theachieve industry leading Red Shield Warranty coverage you system offerings 20-, 25- and system. 30-year warranty options toweb-based help your sustainable generation of the The monitoring V e g e t a t i V e building goals. need to maintain everything that will go under your next “green” roof. This exclusive program • covers Contributes to a LEED ® –certified system is accessible to all employees and customers * EnviroReady Roofing System available in select EPDM and TPO Roofing Systems. See your local Firestone sales inspections before and after installation of new green upgrades. Firestoneand also provides premium green building project representative for details. system offerings with 20-, 25- and 30-year warranty to help you achieve your sustainable e a S y t o i n S ta l l . e a S y t o m a i can be accessed from any computer onoptions the Internet. building goals. • Provides year-round Island Pacific Energy arranged for tax equity financing energy savings * EnviroReady Roofing System available in select EPDM and TPO Roofing Systems. See your local Firestone sales representative forthe details. typical payback period associated with that eliminated • Extends the life of the roof membrane PV systems. Young Brothers saves money immediately, EnviroReady Roofing System because the savings Firestone in electricity is greater than their • Reduces heat-island effect Energy Solutions 250 West 96th St., Indianapolis, IN 46260 monthly lease payments. 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All productsAdvancedRoofingTechnology, and specifications are listed firestonebpco.com/roofing/greenroofing. Inc. www.advanced-roofing.com in approximate and measurements. For complete product and detail information, please refer to the Technical Manual. Firestone takes responsibility for furnishing the cargoweights transportation company’s lease. quality materials which meet Firestone’s published product specifications. As neither Firestone itself nor its representatives practice architecture, Firestone offers no opinion on, e a S y to i n S ta l l . e a S y to m a i n ta i n . e a S y o n t h e e n V i R o n m e n t.

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NewsBeat

GCA Banquet Honors Members

Above, incoming president Lyle Moody accepts the gavel from outgoing president Conrad Murashige. Below, the James Campbell Co. earned GCA’s Kulia i Ka nuu award, accepted by John Higham (left) and Chuck Hill.

The General Contractors Association of Hawaii (GCA) hosted its annual installation and awards banquet on Jan. 15 at The Royal Hawaiian hotel. The 2011 officers of the association are: • P resident: Lyle R. Moody, president of Walker-Moody Construction • First Vice President: John Romanowski, vice president of Jas. W. Glover, Ltd. • Second Vice President: Mike Nakashima, vice president, heavy division, Hawaiian Dredging Construction Co., Inc. • S ecretary: Johnny Y. Higa, executive vice president of the GCA • Treasurer: Sheri Mau, area business manager of Kiewit Building Group, Inc. Conrad H. Murashige, president of Shioi Construction Co., continues to serve as immediate past president. The AGC (Associated General Contractors) national directors include: Glenn M. Nohara, AGC life director; Gordon L. Scruton, AGC life director; Garrett J. Sullivan, formerly of Kaikor Construction Co.; Lance Wilhelm, senior vice president of Kiewit Building Group; and William J. Wilson, president, Hawaiian Dredging. Installed as past-president directors were David C. Hulihee, president of Royal Contracting Co., Inc.; Glen A. Kaneshige, executive vice president of Nordic PCL Construction, Inc.; Stanley H. Osada; and Denny Watts, president/CEO of Watts Constructors LLC. Other directors who also took their oaths of office are: Randall Ching, president of Highway Construction Co.; George Ehara, division manager of Swinerton Builders; Leonard L. Leong, vice president of Royal Contracting; Wayne Melnyk, district manager and vice president, Nordic PCL; Kelvin Osborne, vice president of Hawaii operations for Watts Constructors; and Dale Sakamoto Yoneda, vice president of S & M Sakamoto, Inc. Kaleo Nakamura, vice president of Alii Flooring, is serving as the Subcontractors Council chairperson. GCA’s prestigious Kulia i Ka nuu (“strive for the highest”) award was presented to James Campbell Co. LLC. The Most Improved award went to the City & County - GCA Committee, and Outstanding Committee award went to the Legislative Committee. The featured performer of the evening was Na Leo Pilimehana.

Commercial Roofing Joins Sika Sarnafil Elite Sika Sarnafil selected Commercial Roofing & Waterproofing (CRW) of Hawaii in January as an elite level roofing contractor for the installation of its roofing systems. CRW is one of just 177 Sika Sarnafil elite roofing contractors in the United States. Every Sika Sarnafil-approved contractor goes through a rigorous training and evaluation program to ensure that they meet Sika Sarnafil’s high standards. In addition, each contractor is evaluated and rated annually on a variety of technical

and business criteria and classified into one of three categories – elite, alliance and general – with elite being the highest level of achievement. “We are pleased to recognize Commercial Roofing & Waterproofing of Hawaii as a Sika Sarnafil elite roofing contractor,” says Brian Whelan, senior vice president of Sika Sarnafil. “Elite level roofing contractors are the best in the business, having demonstrated an unparalleled commitment to quality and the roofing industry.” Sika Sarnafil provides thermoplastic, 8 | Building Industry | MARCH 2010

Hale Kehau is a recent Sika Sarnafil installation by Commercial Roofing. single-ply membranes for a wide range of roofing and plaza deck waterproofing applications. The company also is known for its membranes and systems that help building owners achieve a sustainable roofing solution.

ArchitectsCorner

AIA Kicks Off 2011 With New Leadership

The Honolulu chapter of the American Institute of Architects (AIA) introduced its 2011 board of directors at a New Year Kick-Off Party on Jan. 26 at the Pacific Club. Called the executive committee, the association will be led by: • President: Spencer Leineweber, FAIA, University of Hawaii School of Architecture • Vice President/President-Elect: Philip K. White, AIA, Philip K. White & Associates • S ecretary: Sandi Quildon, AIA, PQ Architects, Inc. • Treasurer: Terry McFarland, AIA, Architects Hawaii, Ltd. At-large directors for 2011 include: Scott Wilson, AIA, of Scott R. Wilson AIA; Reid Mizue, AIA, of Shimokawa+Nakamura; Eric Nelson, AIA, of RIM Architects Hawaii, LLC; Kelly Irvine, AIA, of Collaborative Studio, LLC; Mayumi Hara, AIA, of John Hara Associates Inc.; Katherine MacNeil, AIA, of Group 70 International, Inc.; and Tonia Moy, AIA, of Fung Associates, Inc. Zon Sullenberger, AIA, of H & S International serves as Hawaii Island section director. Kris Palagi, Associate AIA, of the University of Hawaii School of Architecture and

(From left) Charles Kaneshiro, AIA, of Group 70, outgoing 2010 AIA president, accepts a token of appreciation for his service from Amy Blagriff, AIA Honolulu executive vice president, while Spencer Leineweber, FAIA, incoming president, looks on. Cogent Designs, was elected as associate, representing AIA Honolulu’s emerging architects and design professionals. The board serves the interests of the approximately 800 architects, associate members and allied design professionals of the islands of Oahu, Kauai and Hawaii. Their term began Jan. 1 and concludes Dec. 31, 2011. Leineweber explains the philosophy that will guide her one-year term: “The architectural profession is in a transformative place in interdisciplinary collaboration, sustainable practices, project delivery, advanced technology and social responsibility. For all of us to lead these changes requires education, alignment and capacity.”

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RevoluSun Expands Services Oahu residential solar systems – more than any other company,” says Todd Georgopapadakos, RevoluSun principal. “Homeowners are quickly realizing the financial and environmental benefits of renewable energy, and they are choosing RevoluSun to help them make the switch.” The firm’s new 5,304-square-foot A recent residential installation by RevoluSun penthouse office will serve as the corporate headquarters for the growing RevoluSun relocated in late company and provide a meeting November to larger offices at the Pan space and showroom for local Am Building, and expanded its services architects and engineers to familiarize to Maui and the Big Island in February. their clients with the latest in solar “After founding RevoluSun in 2009, technology. In addition, RevoluSun in the first 10 months of 2010, we have plans to host solar seminars in the designed and installed 36 percent of

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space, free and open to the public as part of its community education initiative, where homeowners can learn more about solar energy and touch and see solar panels and other renewable energy products. On Maui and Hawaii Island, RevoluSun is offering residents the option to take advantage of solar power service from SunRun, a company that provides solar service for as little as zero down. With SunRun, homeowners pay a pre-determined and fixed amount for the solar electricity produced by the system, protecting them from unpredictable rate increases for the life of their service agreement. SunRun takes complete care of the system, including monitoring, repairs, and insurance, as part of its 20-year service plan.

National Honor In December, RevoluSun became the first solar firm in Honolulu to be accredited as a SunPower elite dealer by SunPower Corp., a manufacturer of high-efficiency solar cells, solar panels and solar systems. To earn this title, RevoluSun must consistently exceed SunPower’s standards, including a customer satisfaction score of 93 percent on solar installations and successful completion of two advanced certification courses in topics such as the installation and design of SunPower products. “Achieving this coveted status is a testament to what we are doing every day: providing the very best possible service, expertise and, of course, technology to our clients,” says Eric Carlson, RevoluSun principal. “SunPower elite dealers are selected for their commitment to providing customers with outstanding service in delivering the most efficient and reliable solar technology available today,” adds Jim Pape, president, residential and commercial, SunPower.

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Kiewit Building Group has named new directors to its Hawaii management team. The firm hired Sharon Thom as director of preconstruction operations. With 11 years in construction, she is responsible for design-build and design-assist projects, business development, estimating and marketing. A 15-year construction industry veteran, Kamu Anderson was promoted from project executive to director of construction operations. In this new role, he is responsible for all construction projects and field operations. In another promotion, Sheri Mau was named director of administrative services and is responsible for human resources, quality control, compliance, finance and information technology. She previously served as area business manager. In addition, 30-year industry veteran Tom Broderick was named Kiewit’s director for the Honolulu Rail Transit maintenance and storage facility (MSF) construction project, a $195 million contract awarded by the City and County of Honolulu to Kiewit/Kobayashi, a joint venture. “This group of leaders will enhance our business operations and put us in a better position to compete and grow our business for years to come,” says Lance Wilhelm, senior vice president and Hawaii area manager. “They each bring a great deal of know-how to their respective roles. Moreover, this move brings more focus to our organization as we work to serve our clients more effectively.”

Kiewit Building Group, Inc. relocated its offices to the Shops at Dole Cannery in January. The new space accommodates approximately 30 employees. The business office staff currently includes 20 employees, while approximately 30 engineers, designers and project superintendents work on-site at the company’s construction projects. “Our new quarters will provide the space we anticipate needing for future growth,” says Lance Wilhelm, senior vice president and Hawaii area manager. The new office space, managed by Castle & Cooke Commercial Inc., spans approximately 5,700 square feet over a two-floor loft. It incorporates recyclable materials and a modern design by WCIT Architecture.

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MARCH 2011 | Building Industry | 11

ContractsAwarded

New Year Doubles Pace

Kauai

Mira Image Construction........ 1,545,000 Pearl City Drying Bed Facility

Standard Electric, Inc............ 1,100,000 Hale Kula Elementary School - Electrical Upgrade

M.H. Electric Co....................... 697,943

DPW Hilo

Oahu Maui DOE

Awards By Agency

Awards By Area

January 2011 Contracts Oahu Interstate Route H-2 Freeway - Lighting System Reconductoring, Waiawa Interchange to Leilehua Interchange

BWS Honolulu DLNR

DOT

Following a banner year that saw agency contracts exceeding $1 billion for the first time since 2004, January continued the good news. The biggest story was on Maui where the DOE accepted the Primatech Construction, Inc. $31.25 million bid to build a new elementary school in Wailuku. This, plus 19 other jobs brought the state’s total to $41,999,669, over twice January 2010’s $19.8 million. The new school construction should keep the momentum going, guaranteeing work for Valley Isle hard hatters and maybe even providing a shiny apple for teacher on opening day.

Paul’s Electrical Contracting..... 2,345,700

Hawaii

Maui.................. 31,540,926 Oahu................... 6,789,827 Kauai.................. 2,668,748 Hawaii................. 1,000,168

DOE................. 35,320,903 DOT .................. 5,395,981 DLNR....................621,023 BWS Honolulu.......440,100 DPW-Hilo...............221,662

TOTAL............41,999,669

TOTAL...........41,999,669

(Awards are rounded up to the nearest dollar.)

Maui

Command Response and Accountability System Training and Equipment at Various Public Airports

Primatech Construction....... 31,255,000

Smalt & Company, Inc............... 120,600

Otis Elevator Co........................ 285,926

Maintenance of Landscaped Areas H-3 Freeway to MCBH Main Gate and Mokapu Saddle Road, Mikiola to Vicinity of North Kalaheo Avenue and Kailua Road, Kalanianaole Highway to Kawainui Bridge

Smalt & Company, Inc............... 103,400

Helemano Elementary School - Electrical Upgrades

Maintenance of Landscaped Areas - H-3 Freeway, Halekou Interchange to Kailua Interchange

Site Engineering Inc.................. 440,100

Hoonani Landscaping, Ltd........... 53,660

Facility Repair and Renovation - Kahana 315-foot Reservoir

Drain Maintenance at Honolulu International Airport

Emergency Response Consult...........349,000

Simplex Grinnell LP..................... 34,424

Furnishing and Delivering of Comprehensive Incident

Maintenance of Fire Alarm System at Kahului Airport

DECEMBER’s Top 10 Contractors 1) Primatech Construction, Inc.......................................31,255,000 2) Paul’s Electrical Contracting, LLC................................2,345,700 3) Mira Image Construction..............................................1,545,000 4) R. Electric, Inc................................................................ 1,199,000 5) Standard Electric, Inc....................................................1,100,000 6) American Electric Co., Ltd............................................... 977,802 7) M.H. Electric Co............................................................... 697,943 8) Global Specialty Contractors, Inc.................................... 621,023 9) Site Engineering Inc.........................................................440,100 10) GP Roadway Solutions, Inc............................................... 416,690 Information is summarized from the Contracts Awarded section of BIDService Weekly, compiled by research editor Alfonso R. Rivera.

12 | Building Industry | MARCH 2011

Wailuku II Elementary School - New School Maintenance of Elevators and Escalators - Kahului Airport

Hawaii Global Specialty Contractors..... 621,023 Honokohau Small Boat Harbor Improvements - Phase I, Kona

Certified Construction, Inc........ 221,662 Edith Kanakaole Multipurpose Stadium New Roof Coating, South Hilo

American Electric Co. Ltd......... 157,483 Kealakehe Elementary School Campus - Electrical Upgrades

Kauai R. Electric, Inc....................... 1,199,000 Kapaa High and Elementary School - Telecommunication Upgrade

American Electric Co. Ltd......... 820,319 Kapaa Elementary School - Electrical Upgrade

GP Roadway Solutions, Inc....... 416,690 Kuhio Highway Safety Improvements - Mile Post 2.98 to Mile Post 5.07, Lihue

Oahu Air Conditioning............... 141,581 Maintenance of Air Conditioning Equipment - Lihue Airport

Certified Construction, Inc.......... 91,158 Eleele Elementary School - Building D Reroof

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Site Preparation:

On Level Ground By Judith Shinsato

Are things looking up for sitework contractors? Do they agree with the many reports declaring the end of the recession? One of the hardest hit during the downturn, are they now reaping some early benefits in what has been called the early stages of economic recovery? We asked executives of several local sitework contractors to give us their perspective of the current situation, including their outlook for 2011, current projects and the challenges or trends concerning them the most.

14 | Building Industry | MARCH 2011

Active Adjustments

The widening of Kauai’s Kaumualii Highway from Lihue to Puhi, being done by Kiewit Infrastructure West Co., will be completed in early 2012.

Kenneth Kobatake, president, Delta Construction Corp. Outlook: I believe Hawaii’s construction industry will show some overall improvement in 2011 for the most part, but it will remain close to 2010. Sitework contractors that have survived have adjusted or are adjusting to the current economic challenges. Consequently, things are looking up because there is an indication of future work. There are good things in both the public and private sectors. Those agencies and private entities that have work continue to contract. Segments of the public sector are under federal decree to fix and upgrade infrastructure. As the decreed work is defined and funds are encumbered, these segments will pick up. Engineering firms are picking up; eventually their designs and studies will result in construction. Projects: Delta continues to be active in both public and private sector work. Our projects include both residential and commercial developments, roadway and (Above and below): Construction of the East West infrastructure projects, and Road for the Department of Hawaiian Home military projects. Delta is currently Lands is one of Delta’s active public projects. constructing the East West Road project for the Department of Hawaiian Home Lands and the first phase of mass grading and sitework for the University of Hawaii, West Oahu campus. We are also under contract for a design-build sitework project for military housing at the Kaneohe Marine Corps Base for Forest City. This exciting project is scheduled to break ground this spring. Challenges/Concerns: Challenges remain the same: constant work acquisition, complying with schedules, building within budget, maintaining quality, and maintaining and developing third-party relationships. These basics have always been challenging. I believe the challenge for the present generation of construction leaders, both administrative and field, is to close the communication gap and pass on critical knowledge. (Also) I’m optimistic and encouraged with young individuals entering the construction industry. They are intelligent, well-educated, communicate well and are engaged.

MARCH 2011 | Building Industry | 15

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Jeffrey Fisher, president, Earthworks Pacific Outlook: Things are ‘OK.’ I don’t know if I agree or believe in the (optimistic forecasts) or not. I think things are still going to be very, very tough for sitework contractors. I see very little private work coming up; everything is going to be public. We’re very close to 100 percent public work now. I look at 2011 to be similar to 2010. I would say that we’ve at least hit the bottom; we’ve plateaued at the bottom. Maybe we have a slight rise going up but it will be a slow recovery. I’m concerned about what’s going to happen with the public coffers being low on money, if there even will be funding for some of these public sector projects. I hope I’m wrong and things start popping. I’d sure be tickled if that happened, but in my opinion, they aren’t going to happen. I’m hoping 2012 is the year. Projects: The Kauai Department of Water (DOW) has been cranking out a lot of tank and water line projects, and it’s been very, very helpful to the Kauai contractors. We have two waterline projects under contract, one we’re right in the middle of and one we just picked up. The DOW is a real bright spot for sitework people on Kauai. We’re doing the Kilauea River debris removal – originally a state job but it changed to county – it’s a barge project, excavating the river and removing the debris from when the Kaloko dam broke years ago. We’re about 25 percent complete on that; scheduled completion is May 2011. We have two Department of Transportation (DOT) highways projects on the north shore that were put off, but we’re going to start those in April. We also have the two dam projects coming up that the state Department of Land Natural Resources awarded. We’re working on permits and those will get started also sometime in April or so. Challenges/Concerns: The main challenge is keeping busy. Like everybody else, we’re looking at different things. We did have to branch out. We have

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One of Earthworks Pacific’s county projects is excavation and debris removal at Kilauea River. two state highway projects on the Big Island, one is about three-fourths complete and the other one is just starting. We have looked at other places because there is really not enough here on Kauai. We’re not looking at other islands but we plan

to continue having a small presence there on the Big Island. The other thing we’re trying to do is things that we would normally subcontract out, we’re looking at doing them in-house, just to keep our guys busy.

Chad Goodfellow (CG), vice president of operations, and Ray Skelton (RS), Maui regional manager, Goodfellow Bros., Inc. Outlook: CG – We are cautiously optimistic. We’ve got some backlog, it looks like there’s opportunity and more projects in the pipeline. RS – Also it seems like there’s a little more movement in the private world. Not that it’s earth shattering but it sure beats the deep freeze. There are opportunities out there. People are asking for prices. The government officials tell me they’re starting to see a few more drawings come in for review. And we do see more work out there to bid. Projects: CG – We just finished the Kahuku Wind Farm project for First Wind (owner) and RMT (general contractor). Work included clearing 58 acres and mass excavation for 12 turbine pads and haul roads, pouring structural concrete and installing 11.5-foot tall, 18-foot diameter anchor

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18 | Building Industry | MARCH 2011

Project Update Mentioned by Ray Skelton of Goodfellow Bros., as one of the projects that would be a great source of work for sitework contractors, and one they’ve been waiting for, is the next phase of A&B Properties, Inc.’s Maui Business Park. Giving us an update is Alan Arakawa, A&B Properties’ senior vice president – planning: “A&B Properties has moved ahead on the development of Maui Business Park, Phase II, Increment 1. The 108-acre Increment 1 will provide fee-simple light industrial and commercial lots for businesses on Maui who wish to be located close to the airport and harbor. “For this increment, we are in the process of obtaining construction plan approvals from government agencies. Concurrently, A&B is out to bid on the contract for mass grading, construction of offsite and onsite utilities (water, sewer, drain, electrical), roadways, and landscaping. We expect to award the contract (this month), and construction is projected to start in April or Sitework for Maui Industrial Park, Phase II, Increment 1 is projected to start May, depending on permitting. Marketing of in April or May, depending on permitting. Photo courtesy of A&B Properties lots will start in the third quarter of 2011.” “The project would definitely get a lot of our union operators off the bench,” adds Chad Goodfellow of Goodfellow Bros. “A couple of projects of this magnitude would be huge for our industry.”

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March 2011 | Building Industry | 19

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Goodfellow Bros. performed the sitework for the First Wind Kahuku wind farm, part of which included clearing 58 acres, much of it done with a hydro-axe to minimize erosion runoff, and mass excavation for 12 turbine pads and haul roads. bolt cages for the turbines, and constructing 400,000 square feet of structural roadway with coral sub base and recycled asphalt pavement topping. And we’re working on Kaheawa, phase 2, another wind farm project

(14 turbines) on Maui by First Wind. We have the Lahaina Bypass (formally called the Honoapiilani Realignment, Phase 1B-1); the Queen Kaahumanu Highway on the Big Island, a design-build project that should get

Isemoto Contracting Co. Ltd

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started in April; and Nimitz Highway, from Atkinson Street to Hilton Hawaiian Village. This one is mainly redoing a lot of the streetlights and the electrical, taking it underground. RS – We’ve completed a regional park in Kihei. This first phase is 21 acres. It’s got a soccer field and a baseball field, concession stands and walking paths and space for soccer fields, etc. One more 20-acre phase is planned. On Kauai, we’re finishing up a water line in Waimea and completed the landfill in Kekaha. CG – On the Big Island, we also did the Queen Liliuokalani Village cesspool replacement, connecting homestead houses into the sewer grid. It was a very interesting project. The neighborhood has been around for years, so you’re working under rock walls and in people’s yards. We actually had to make connections to the houses, so you can imagine how challenging that can be. And then there’s all the lava rock. One of our lead foremen actually lived in the neighborhood, which also helped. Challenges/Concerns: RS – Well, the money, of course, is the big thing. But I think they’re finding creative ways to start to get some of that out. CG – It kind of falls in with our overall theme, which is cautiously optimistic. We’re also very hopeful that, as our industry starts growing again, a lot of our (newly) elected officials are going to help kind of incubate that growth, to help facilitate our industry. RS – In the governor’s state of the state address, he talked about how, short of tourism, construction is the single next largest area of employment. That does affect Hawaii’s livelihood. Everybody knows somebody who’s in this industry who needs to get to work. It’s also the competitive nature of the marketplace. Everybody has higher and higher expectations of production. To be successful in this challenging market, contractors have to be very goal-oriented and taskdriven. These are probably some of the biggest hurdles out there in the marketplace. You can get any piece

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of equipment you need, you can get any materials, you can get the people, and you can get the permits. It’s just how you bring all of that together. Something we at Goodfellow believe strongly is we’re going to do it right, to the highest level of quality, and we’re going to make sure our people are safe. Whether we meet our goals or we don’t, we’re going to make sure those two things are in place. CG – It’s also keeping people focused and motivated. I think the mantra in our industry, probably in the last three years, has been ‘do more with less’ and ‘do even more with less,’ and then ‘do a little more with a little less.’ And we can do that. Everybody has done a great job stepping up to the challenges, but we do also need to focus on our people and make sure that they’re living healthy lives. We’re not going to burn them out, which is a concern right now. We appreciate our people, with the burdens that they are shouldering, and the hours they’re putting in to see that our company is successful; it is pretty awe-inspiring.

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Leslie Isemoto, president, Isemoto Contracting Co., Ltd. Outlook: I believe the Island of Hawaii will remain flat for infrastructure projects throughout 2011, although we may see an increase in sitework projects in the fourth quarter. There are a few DOT projects that might be released for bid by June 30, 2011, but they have been on the books for a few years. Hopefully, funding will be released. As for the County of Hawaii, Mayor Billy Kenoi’s $56 million bond float request has met opposition by the County Council. As long as the U.S. economy remains flat, we will see little improvement in our industry. Projects: Work continues on the Hilo Hold Cargo Facility, Piihonua and Olaa Reservoirs. We have started up the parking lot expansion, phase three, at Kona International Airport; Puukapu hybrid water system; Kaloko Housing, phases one to three; Waikoloa Beach Resort wastewater treatment facility; and the third unit of emergency rockfall mitigations. The second phase of replacement of passenger loading

Easier Permits The state Department of Health (DOH) Clean Water Branch (CWB) is finalizing changes to the permit application process, which will be effective April. According to Joanna Seto, engineering section supervisor for the DOH-CWB, as of April 1, the CWB will no longer be accepting Form C of its permit application. “The DOH-CWB is introducing a Hawaii CWB Site-Specific Construction Best Management Practice (CWB SSCBMP) Plan Template. It will include all of the information formerly required in Form C as well as require the submittal of a few new pieces of information that the DOH-CWB feels will expedite review times and provide more value for owners, consultants, contractors and the environment. A completed CWB SSCBMP Plan will be required to be submitted at the time of application.” A copy of the plan template will be available for future download at: hawaii.gov/health/environmental/ water/cleanwater/forms/genl-index. html. “The changes are meant to reduce the permitting timeline table,” explains Scott Gaston of Willocks Construction Corp. on the Big Island. “Currently it takes three to four months to receive your Notice of General Permit Coverage and then there is another 30-day period once the permit is received for the contractors to submit their project specific information. All of our interactions with the CWB in permitting have been very positive; they are very aware of the delays in permitting and how it impacts getting workers on to the projects and working again.” Adds Rodney Nohara of Jayar Construction, “Adherence to the permit requirements are sometimes difficult to attain because of the logistics of the project site and the unpredictability of the weather. The fine for violating the permit requirements can be quite expensive. There are always new environmental protection products that are evolving to help us achieve compliance of the permit.”

bridges at Hilo International Airport is expected to begin April 2011. Challenges/Concerns: The biggest challenge we are facing right now is the rising cost of fuel and material pricing. Hot roll steel has risen 29 percent and more increases are forecasted in the coming weeks. Many of our projects have stalled, and the rising cost of fuel and material prices will affect the very small profit margins all contractors face due to the tight market.

Abundant Public Sector Rodney Nohara, president, Jayar Construction, Inc. Outlook: The forecast for 2011 is only slightly better than for 2010. However, according to a report published by the Hawaii Institute for Public Affairs (HIPA), state and county agencies expect to spend $14.3 billion in design and construction through 2015. Provided that

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At the Queen Liliuokalani Village on the Big Island, Goodfellow Bros. closed about 38 large-capacity cesspools and connected the 186 homes to the county’s sewer system. The project was completed six months ahead of schedule. these agencies can get the funding to proceed with their projects, this will provide an abundant amount of projects for sitework contractors. The public sector provides a source for a lot of the projects. The

federal government has been pretty steady the past five years, especially the housing projects for the Navy (Forest City) and the Army (Actus Lend Lease). The private sector is starting to move a little. The avail-

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ability of funding would help to get projects into active construction. Streamlining the permitting process also would help in getting these projects in motion. Unfortunately, with the numerous government regulations and agency approvals, this process takes a long time. Projects: We have been on the Disney resort project as a subcontractor to Hawaiian Dredging Construction Co. since 2007, and unfortunately for us the project is nearing completion. That project has provided us with steady work over the last three years. We have also returned to the Ward Village Shops with general contractor Albert C. Kobayashi, Inc. This project had been stopped for several years, but is now nearing completion. Our Shriner’s Hospital project with JE Dunn is just about complete. We are about halfway with our Funston Village Neighborhood project in Fort Shafter with Actus Lend Lease. Challenges/Concerns: The General Contractors Association of Hawaii (GCA) sponsored a

Construction Stormwater NOI/NGPC Workshop in January presented by the state Department of Health (DOH). The DOH has stated that it will be revising the permit application form to hopefully make the permitting process and enforcement of the plan more efficient. (Editor’s note: More information about this can be found in the page 23 sidebar on “Easier Permits.”)

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Increasing Momentum Ben Prock, Hawaii area manager, Kiewit Infrastructure West Co. Outlook: I would agree that 2011 will likely be better than 2010, but that’s not to say that the competition will be any less fierce. The timing of projects could make a big difference when it comes to the number of players at the table. As long as the projects hit the streets in a stable and consistent manner, I believe companies will have to strategize a little more to figure out what projects to go after. There is no doubt that sitework contractors will see more projects

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Improving Prognosis

Willocks Construction completed the VOR relocation at the Kona International Airport in December. being advertised, the question is just when. Private developers will likely gain momentum through funding of their projects and there will always be a pressing need for public improvement projects. The public sector still remains the source of most of the projects and will likely remain that way until we see easing of financing and credit availability for private developers. The construction market will likely see positive effects of this. Although it may not be something we see overnight, it is definitely coming. Projects: Kaumualii Highway widening â&#x20AC;&#x201D; the $39 million project consists of road construction of an existing two-lane road to four lanes from the town of Lihue to the town of Puhi. The scope of work includes demo of existing roadway sections, excavation and embankment, building of retaining walls, over excavation of soft soils, three castin-place box culverts, installation of drainage lines, removal and replacement of waterlines, asphalt and concrete paving, installation of curb and gutter and sidewalk, stream realignment, roadway drainage, lighting and electrical and communication systems. Construction activities commenced

in May 2010, and project completion is scheduled for early 2012. Safety remains a top priority on this project and is a major component in our planning efforts for the operations occurring along the highway. Our Maintenance of Traffic (MOT) plan offers measures to reduce impacts to motorists during and after construction activities, especially since this is a major and only throughway from the southwest to northeast coast of the island. Challenges/Concerns: All of our projects have strict environmental requirements. We have noticed that most agencies are securing environmental consultants who perform more frequent and more detailed inspections to ensure projects remain in compliance with all state and federal requirements. Recently the method for treating and disposing of concrete wastewater is receiving scrutiny from regulatory agencies. The days of washing out concrete trucks on the grade are becoming a thing of the past. Today contractors must have the means to collect wash water and either haul the material to an approved disposal facility or have the means to recycle the material. 26 | Building Industry | MARCH 2011

Scott Gaston, vice president of estimating/engineering, Willocks Construction Corp. Outlook: 2011 certainly looks to be a better year than 2010. We are seeing an increase in commercial projects being constructed and slight increases in price requests for private development. Local state and county budgets are the looming question as we move into the second half of the 2010-2011 fiscal year. How are the agencies going to manage budget shortfalls while remaining committed to issuing public works jobs to help stimulate the economy? Here on the Big Island the mayor and County Council are reviewing a proposal for a $56 million bond float for capital improvement projects intended to help spur private development but face an uphill battle for adding debt during a time of reduced tax revenues. There is an increased confidence in the economy but the housing market is still down with high foreclosure rates flooding the housing market. We need to see the foreclosure rates reduce to create a demand for new home construction. This may take a couple more years to rebalance itself. Projects: In December we finished the VOR (very high frequency, omnidirectional radio range) relocation at the Kona International Airport. This project had a good amount of sitework consisting of mass grading, installation of 3,000 linear feet of underground power and communication lines, and paving a 1,200 linear-foot road and a half-acre pad for the VOR shelter, antennas and parking. The project lasted five months. We are currently on the tail end of a nine-month project for the County of Hawaii called the Pahoa Recycling and Transfer Station. The project (called for) installing three large retaining walls and steel shelters along with a CMU building for household hazardous waste disposal. We have a pending project with the state called Hawi Reservoir No.

3, which will entail a large amount of excavation and embankment to reinforce the dam walls as well as lowering the spillway elevation by 20 feet to reduce the damâ&#x20AC;&#x2122;s capacity. Challenges/Concerns: The biggest challenges we face today are still the economy, the shortage of projects to go around for all contractors and the highly competitive climate. Government regulations such as Act 17, the Hawaii Apprenticeship Preference, affects all state and county public works projects by awarding a 5 percent bid credit to contractors who have employees who are members of a qualified apprenticeship program. We are watching to see how it will play out this year. We would like to see more public discussion regarding this act, its implementation and how the act is intended to improve the construction of public works projects. There also has been an influx of larger building contractors taking on sitework projects, which is another indication that there currently is just

Work is well under way on the University of Hawaii Cancer Center. Koga Engineering recently performed the excavation. Pile driving is currently being done by Morris-Shea. not enough work to go around. Many of the challenges we faced last year are still in place but we have learned over the past year to account for

and better manage these challenges and are hopeful that 2011 will be a year of stability in the construction industry. BI

91-255 OIHANA STREET, KAPOLEI, HI 96707 | TEL. 808.682.1315 | FAX 808.682.5629 | TOLL FREE 800.342.1513 LIC. NO. ABC 9245

MARCH 2011 | Building Industry | 27

SpotlightOnSuccess

Saint Louis School Clarence T.C. Ching Learning and Technology Center

"Educating the Whole Person" As part of its mission of “educating the whole person,” Saint Louis School contracted general contractor Albert C. Kobayashi, Inc. (ACK) to build its first new academic building in more than 20 years. The state-of-the-art facility will house the school’s Hawaiian studies, fine arts and business leadership programs, because “arts are an integral part of a comprehensive education that broadens student understanding and appreciation of the world,” according to the school. Construction of the $8.3 million facility began on Nov. 23, 2009 and was completed on Jan. 26, a month ahead of schedule, according to Ryde Azama of ACK. Named the Clarence T.C. Ching Learning and Technology Center, the structure encompasses 27,000 square feet over three stories. “(The) building features a 3,200-square-foot music area, a dedicated kiln room and a one-of-a-kind clock tower,” states Azama. “This clock tower is a concrete structure with four columns bending inwards to create a pinnacle 54 feet in the air.” 28 | Building Industry | MARCH 2011

It also includes a technology lab, industry-standard data center, a television production studio, and a distance learning and video conference center that will be made available for community-wide discussions, programs and conference.

Great Expectations One of the main challenges during construction arose from Saint Louis School and Chaminade University remaining in session during the operation. “This caused multiple scheduling conflicts, i.e. work hours, material deliveries, safety and the overall schedule of the building,” explains Azama. “Thanks to excellent communication between our project superintendent, Nestor Menor, and project manager, Brian Niitani, and the Saint Louis School representatives, Steve Teraoka and Matt Elvera, ACK was able to work around the major events of the school and complete the project (early).” Crediting the efforts of the field staff and the firm’s safety administrator, Mel Nishida, Azama says no accidents or injuries occurred outside of the project site due to construction. Another major concern, says Azama, was “building the foundation on the mountain of Kalaepohaku. Lava tubes are a natural phenomena of the mountainside, and if any of the building’s footing had been built on any lava tube voids, it would have spelled disaster for the foundation of the building. Probing of the entire foundation footprint was required and more than 100 cubic yards of concrete were pumped in the mountain’s empty cavities. “But, this was an easy task compared to constructing the primary architectural feature of the building, the clock tower,” continues Azama. “The clock tower stands 54 feet high and is comprised entirely of concrete and rebar. While other materials such as iron and sheetmetal can be fabricated and placed, concrete must be poured and formed, which is no easy task, especially 54 feet in the air. Thanks to our senior detailer, James Takara, ACK was able to fabricate forms to create this pyramid pinnacle of four columns.”

Effective Communication Overall, but especially because school was in session during construction, Azama says, “Communication was a key aspect of this project to running smoothly.” Besides the aforementioned, he gives kudos to others associated with the undertaking: “The architects on the job, Ron Kunimitsu, Johnny Wu and Kristi Sumida of Design Partners Inc., are in a class of their own as they provided quick and cost-effective design decisions that allowed the construction process to flourish. The Saint Louis School staff also had its hands full as they tried to balance out the everyday events of the school to the aggressive construction schedule. They, too, had the foresight to arrange certain events around key construction tasks. Also, they kept their community informed of the process of the construction, which allowed everyone in the Saint Louis School community to be well informed and safe.

“This was a great job for our company as it allowed us to gain more experience working on an active school campus with a jobsite that had very little space to work with. This is truly a credit to everyone who was involved.” Patricia Hamamoto, Saint Louis School principal, adds, “The completion of the Clarence T.C. Ching Learning and Technology Center is a major step in fulfilling our vision of ensuring our students graduate with 21st century skills and competencies.” BI

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IF THE MONEY’S WHY CAN’T WE Finance, Bonding & Insurance – the Basis of Building By Lee Schaller

In March 2009, the last time we presented an in-depth report on this topic, the state’s economy was at its most challenging — layoffs were rampant, many development plans had been scrapped or postponed and financing was just about impossible to obtain, if, in fact, there was anything moving forward to finance. The industry members we spoke with at that time were hoping for better days — cutting back, diversifying, hanging in. It is now two years later. What is the current financial outlook for projects and plans? Is funding more readily available? How tough is the bonding procedure? Here is our take — and your input:

30 | Building Industry | MARCH 2011

THERE, GET IT?

Editor’s Note: Be sure to read the Hot Topic on page 43. It addresses in detail the Group Builders vs Admiral Insurance lawsuit and its potential far-reaching impact.

Is There Any Good News? “Financing seems to be becoming slightly less restrictive and more accessible,” says Brian Hart of Hart & Shinohara, LLP. Timothy Fanto, senior regional vice president/team leader, western region, surety, credit and political risk for Zurich Insurance, tells us, “Currently, the construction industry is working itself through the most difficult time since the Great Depression, with all-time levels of unemployment. More importantly, the industry’s primary source of revenue, public work, is fraught with budgetary challenges, which make the procurement and timing of work uncertain. In addition, the move to large alternatively financed projects potentially reduces the availability of projects. Fortunately the overall economy is showing signs of improvement, which should be the catalyst for a return to more favorable times. Contractors must aggressively position themselves for better times NOW.” “This really is a question best answered by the banks,” says Michael Grossi, executive vice president, construction services group, Aon Risk Services, Inc. of Hawaii. “But I can tell you it does appear the banks are starting to loosen up slightly and looking to lend money. If you noticed, the large local banks have been reporting flat earnings. In order for them to improve and grow earnings, they will need to start making more loans. So, I would expect the major local banks to increase their lending in 2011.” Regarding mainland developers and “big boxes” who enter the local marketplace, Grossi says, “The large Michael Grossi, Aon Risk mainland retailers tend to have lines Services, Inc. of Hawaii of credit already established or use internal funds to pay for the construction of their projects.” “We’re not out of the woods yet. However, that being said, we have seen an upsurge in new construction,” says Tad Nottage of Aloha Insurance Services. “At the front end of the recession, we saw that the market had overpriced itself both in developed and undeveloped real estate. The market has corrected itself somewhat and with the lower pricing, there has been more activity in the high-end residential market — new projects are under way at a much lower cost. Where contractors used to charge $850 to $1,500 per square foot, they now charge between $650 and $850.” Addressing the availability of funding for development and construction projects, Tom Cabrinha, a partner with Erwin Cabrinha & Au LLP Certified Public Accountants, a

March 2011 | Building Industry | 31

Miyashiro, assistant vice president, surety manager, underwriting division for Island Insurance Companies, “it is in no way on the same level as in 2005 to 2007. And although it appears that banks would like to increase their level of lending, newly implemented federal regulations have lengthened the time it takes to close a construction loan. State and city & county agencies continue to require repair and/or new construction work to be completed. However, these government entities still do not have the necessary dollars to get the work done. From late 2009, the state’s introduction of the HePS (Hawaii Electronic Procurement System) has lessened some of the costs Nan Inc., a client of Aon Risk Services, Inc. of Hawaii, was genand time required to take a construction project under eral contractor for the Pacific Warfighting Center at Ford Island. $250,000 from the design stage to the bid stage. However, these projects do not provide a significant impact on the Hawaii-based firm with extensive experience in the conbigger picture. We have noted that the state is moving struction and real estate development areas, points out, “We toward IDIQ (indefinite duration/indefinite quantity) type are fortunate here in Hawaii where, generally speaking, our projects. This allows the state to bundle projects while financial institutions have been stable. With that stability minimizing administration costs.” comes the ability to extend credit. The money is there. “2009 and 2010 were very difficult years for the Qualifying for it, however, may construction industry, and be a different story.” correspondingly, for the surety “We are fortunate here in Hawaii, Jack Wolfe Insurance’s Larry industry; akin to the early where, generally speaking, Stubblefield (whose projections part of the new century and our financial institutions have been stable. the late 1980s to early 1990s,” and comments in our March 2009 Finance and Bonding says Melissa Current, surety With that stability, comes the ability report proved to be right on the and fidelity manager for First to extend credit.” money), tells us, “Surety credit Insurance Company of Hawaii, Tom Cabrinha, Erwin Cabrinha and Au is provided to financially solid Ltd. “While many financial and sustainable contractors. This analysts predict the economy to has not changed, nor will it. However, surety companies be on the rebound overall, it will be a tight 2011 and 2012 have been more understanding as regards a year or two in Hawaii, especially for the construction industry.” of revealed losses by their on-board contractors. We are “Condo and the more affordable residential projects seeing more requirements to provide surety from subconare still very slow,” says Aloha Insurance’s Nottage. “It is tractors — this is a form of conservative underwriting.” still very hard to obtain financing and there still are quite a few unsold and bank-owned properties on the market. Until those are gone, I think it will remain slow. It seems No Rose-Colored Glasses Here There are varying opinions about the current financial and insurance picture in Hawaii. Although a few of those in this key sector were able to find a positive sign or two, there still are many areas of concern for the rest of this year and 2012. “The construction industry slowdown in 2009 and 2010 has impacted contractors, insurance agents and insurance companies insuring contractors,” says Paul Botts, principal, insurance and surety for Risk Solution Partners. “As an insurance agent, we saw our income from our construction clients decrease because insurance premiums are based on payroll and revenue. This, combined with lower insurance premiums on workers’ compensation and slightly lower premiums on general liability and auto insurance, resulted in lower revenue and income for insurance companies and insurance agents. From our contractors’ point of view, the number of projects available to bid on decreased and competition increased, which meant lower profit margins for most contractors on jobs bid in 2010.” “Although lenders are extending credit,” says Tricia

Gentry Homes, a client of Risk Solution Partners, recently completed the Kanehili residential community in Kapolei.

32 | Building Industry | MARCH 2011

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Index Builders, Inc., a bonding client of Hart & Shinohara, LLP, performed site and dwelling improvements at Kalihi Valley Homes. that although there are some signs the economy has turned a corner, many are taking a ‘wait and see’ approach to starting new projects. The insurance market is still very soft, therefore rates are down. Wrap-up insurance can be obtained for half the amount that was being charged five years ago and it can be much less restrictive. Property insurance, including ‘builder’s risk,’ also can be obtained at a discount. The surety market is not so soft, since unlike insurance, if the project fails and the bond is called, the surety will

go back to the contractor or developer and try to get its money back. In

“The economic crisis continues to impact both the commercial and contract sureties markets…” Frank Wirt, Aon Risk Services Inc. of Hawaii this day and age, there are far fewer contractors or developers left who can support a strong bonding program.”

“The greatest concern,” says Brian Hart, “has to do with the fact that nearly all the higher gross profit work acquired 24 to 36 months ago has run off and the work that was picked up over the past 12 to 18 months has very thin margins with not much room for error. For a small but increasing number of contractors, this is a very critical year.” In commenting on lending for residential versus commercial projects, Aon’s Grossi tells us, “I think the point to be made here is that while both can be a challenge, it is clear that the project itself needs to make good financial sense for the banks to lend. On commercial projects, developers need to show they have a certain number of committed tenants before the bank will trigger the financing. On the residential side, it’s all about pre-sales before the bank will lend. There appears to be more money out there for commercial developers than for residential, and that really has to do with the housing market.”

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34 | Building Industry | MARCH 2011

But What Do the Lenders Say? “The capital markets continue to recover and we are seeing more money enter the market as time goes by,” says Dean Hirabayashi, senior vice president and manager, commercial real estate department, American Savings Bank (ASB). “The Hawaii banking Dean Hirabayashi, industry is healthy American Savings Bank and the availability of financing in the commercial real estate market keeps getting better. For quality commercial properties already built, stabilized and in good locations, financing is abundant and lenders are offering very competitive rates and terms for these. Commercial real estate properties with inherently more risk due to, amongst other things, location, property type, tenant mix, age and condition, still are being underwritten conservatively. This could change as the economy improves and job growth trends positive and as more capital flows into the market, but I don’t see any radical shifts in the future. Financing also is available,” Hirabayashi points out, “for ground-up development financing on owner-user properties when the owner is a viable and creditworthy tenant. Lenders, however, are still being cautious with prototypical investment and for-profit type ground-up development projects. Lenders (also) are being cautious with residential developments and are steering most of the money toward affordable housing projects since that is where the demand is; however, those end buyers are finding it difficult to qualify for long-term residential loans, so even these types of projects are being underwritten carefully. Prototypical ground-up commercial development projects (office, industrial, retail) are not quite penciling out, but savvy developers are starting to be successful in shaking foreclosed land from lenders

Material Minded? We asked Errol Nii, senior vice president of Honsador, how material house bonds (bonds provided to qualified general contractors and owner/builders for residential construction projects) are doing. “Generally speaking,” he says, “there has been a significant drop in the number of bonds requested, mainly due to the economic picture. There are quite a few renovation projects, and there is a sense of things picking up, but we don’t see there being a major difference from last year.” Nii says Honsador continues to look closely at the requesting company’s past experience and financial credit. “We continue to review our procedures,” he adds, “to better underwrite and administer bonds.”

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MARCH 2011 | Building Industry | 35 FICO-21795_4-625x7-375_v2.indd 1

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Sea Engineering, Inc.’s structural repair work at Piers 9-11, for the State of Hawaii Harbors Division, is almost completed. The project is bonded by First Insurance Company of Hawaii, Ltd.

at a discount, which can make the numbers work. There also are a few retail ground-up projects in the planning and construction stages, attributable to large national retailers who are developing and anchoring their own centers.” Bottom line? “At American Savings Bank, we are comfortable with the market conditions and are looking to finance real estate projects that make sense, and more importantly, that enhance the communities in which we all live and work.” “Interest rates continue to be attractive,” says Patrick Yamada, senior vice president and manager, commercial real estate Hawaii, for Central Pacific Bank, “and in general, banks have money to lend. We currently are looking for commercial real estate lending opportunities. Projects and properties with strong sponsorship and solid real estate fundamentals, in particular, should be able to obtain very competitive financing. Now is a good time to explore all avenues of financing.”

impacted the ability of Hawaii’s smaller to medium-sized contractors to obtain work.” “The surety industry continues to consolidate, albeit with the non-majors buying smaller sureties,” reports Brian Hart. “The industry as a whole has been (somewhat surprisingly) very profitable and has been waiting for the losses to start rolling in. The frequency of loses is on the rise, but the dollar loss income has not been alarming. It’s not like we are waiting for the other shoe to fall — the first shoe has yet to fall.” Hart also notes that the industry “is seeing some national bonding companies beginning to pursue other sureties’ books more openly. One or two national sureties are looking to re-enter segments of the market that they haven’t been active in for some time. Some smaller sureties also are beginning to assert themselves.” “From what I read from our local economists, it seems as though we have bottomed out and that things should be turning up for the construction industry in late 2011 and 2012,” says Risk Solution Partners’ Botts. “Bonding companies will be more cautious in 2011 in their underwriting of contractors, but we see plenty of capacity from bonding companies to write more bonds. The same is true for insurance companies writing insurance for contractors.” Botts adds that workers’ compensation rates for 2011 are flat (no increase or decrease). “This reverses a trend of lower rates for the past four years.” “The Hawaii financial markets have always been conservative as regards requiring surety bonds for financed projects,” says Jack Wolfe Insurance’s Stubblefield. “This certainly will continue. Mainland financial institutions do not require surety bonds with the same rigidity of philosophy that our institutions do; thus, on occasion, our contractors are enabled to procure private work without a surety bond. We have seen many contractors move into the public sector,” points out

Trends and Projections “Military work continues to be the largest contributor to the construction industry,” says Island Insurance’s Miyashiro. “Since the ARRA (American Recovery and Reinvestment Act) was implemented, there has been great focus on infrastructure as well as large energy and highways contracts. The government’s continued focus on family housing facilities has provided some contractors with the necessary revenues to stay alive. We expect these sources to continue to be the mainstay for many contractors in the next one to two years. In commercial/ retail, the construction of ‘big box’ stores also has been a very good staple. However, as both military and commercial (‘big box’) projects are quite large, we do notice this has

Hart & Shinohara, LLP bonding client Index Builders, Inc.’s whole school renovation work included Pearl City High School (shown here), Lehua Elementary School and Makakilo Elementary School.

36 | Building Industry | MARCH 2011

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Wrap Session Expert Law, a resource for attorneys seeking expert witnesses, defines an owner controlled insurance program (OCIP) as “a wrap-up under which a project owner provides various insurance coverages to contractors and subcontractors. Another type of wrap-up is a contractor controlled insurance program (CCIP) under which the general contractor is the sponsor. The two programs are basically the same. The main difference is sponsorship (owner vs contractor) and the main question concerns control. Who is responsible for what? The issue of control can pose problems if the wrap-up is not structured with partnering and collaboration in mind.” “This concept (wrap-up insurance) is still widely used on all large projects and most residential projects in Hawaii,” says Aon’s Grossi. “For residential projects it is still really the only viable alternative for proper coverage of all contractors on the project. The Disney project was insured under this concept and we assume the rail project will be as well.” “We are providing a number of wrap-up insurance programs for our clients,” says Risk Solutions Partners’ Botts. “They make sense for owners (OCIPs) and for general contractors (CCIPs) on large projects. The University of Hawaii Cancer Research Center project is an OCIP for general liability insurance. These wrap-up programs are a sophisticated risk management tool for projects that meet the right criteria. One is that the project should be at least $50 million in construction value. The larger the project the better, because the owner or general contractor acts like an insurance company and enrolls all of the eligible subcontractors and collects the insurance premiums enrolled contractors would have paid to their own insurance companies. The owner or general contractor purchases an insurance program covering all contractors on the job site. One advantage of an OCIP is that the owner can buy broad coverage with high coverage limits at very competitive prices. Normally, the owner or general contractor retains a good portion of the risk ($250,000 to $500,000), which is a self-insured retention (SIR) and has to pay claims (out of their own pocket) up to the limit of the SIR. If the claim exceeds the SIR, the insurance company pays the portion in excess of the SIR. The key to the success of an OCIP or CCIP is controlling losses. There is a very strong safety incentive for the owner and the general contractor.” As an example of a successful OCIP, Botts points to client Gentry Homes, which, he says, has been running a wrap-up insurance program called GRIP (Gentry Rolling Insurance Program) since 1998. “It is one of the most successful programs in the nation, according to Zurich, the insurance company writing the general liability and workers’ comp insurance,” says Botts. “The program is successful because of Gentry’s commitment to safety. They have a full-time safety person on staff and pay out $50,000 or more each year in safety awards to workers who participate in a safety jackpot program.”

Stubblefield, “where the money has been for the past two and contract sureties markets...” “As the private construction market continues to be years. Going forward, the private sector should pick up, constricted, a number of private works construction but slowly. Mainland developers do take funds off island, companies may be tempted to enter the hard bid but the majority of the work is done by local contractors public works arena,” says and does keep the money in Hawaii First Insurance’s Current. — even mainland workers spend “Jumping into public works their wages here.” “What lenders are looking for without sufficient experience Frank Wirt, vice president of is a healthy viable project and, hopefully, a mentor, is Aon, tells us, “Surety underwriters with real equity – and cash,” never advisable and can have are scrutinizing contractors who Brian Hart, Hart & Shinohara, LLP detrimental results for an rely heavily on their bank facilities inexperienced entity. There is a (subcontractors are of particular wide chasm between negotiating concern) and those seeking bonding a private works contract and providing a competitive bid support for projects of greater size or of a different scope for a public works project.” than their normal business operations.” He sees more “Conditions will continue to improve,” says ASB’s thorough underwriting than in the past, including closer Hirabayashi, “and so will optimism. 2009 was bad, 2010 reviews of bank covenants, compliance certificates and was much better and 2011 should see an improvement. SEC documents. In addition, “Reporting requirements Things are slowly getting back to normal levels similar are becoming more formalized. Surety companies are to where we were in the early 2000s. I think we are in defining financial reporting dates, and they are seeking for more stable times ahead. Since we are in the trough, debt covenant compliance certificates on a frequent developers, owners, investors and lenders all have more basis. Complete copies of all loan and debt facilities confidence in their proformas and projections, unlike also are being reviewed.” In summary, Wirt says, “The economic crisis continues to impact both the commercial in 2007, 2008 and 2009, when everybody was unsure of 38 | Building Industry | MARCH 2011

where the bottom was — which made it very difficult to move forward on real estate projects.” Hirabayashi adds, “It’s great to see local retailers competing with the national retailers. Competition is healthy and it builds stronger businesses. I believe we all have seen many local retailers re-invent themselves and find new niches in the marketplace that ‘big boxes’ cannot fill. At the end of the day the real winners are the consumers.”

What You Have to Know to Get the Money You Need •P aul Botts, Risk Solution Partners — “We are receiving more questions from the bonding companies who want more information about each contractor’s backlog of work, bank line of credit renewal, accounts receivable and accounts payable. One of the essential items for a contractor in obtaining surety credit is having sufficient working capital and net worth to run the backlog of work and to bid new work — especially important during a construction slowdown. Those contractors who retained earnings during the good times and now have strong balance sheets are able to get surety credit in 2011, and this gives them an advantage. The other thing we are seeing is banks cutting back on working capital lines of credit for contractors. This is a result of shrinking revenue and lower net income. Bonding companies want their contractor clients to have an adequate bank line of credit to assist with working capital needs during tough times.” •T imothy Fanto, Zurich Insurance — “Success in this market and through the recovery will be led by firms that strengthen their organizations via: 1. Improving cost controls 2. Pre-planning of all new projects to maximize results on tighter margin work 3. E nhancing contract administration to deal with a greater likelihood of project disputes and claims

Risk Solution Partners is committed to helping our clients with reallife, workable solutions focused on prevention, Brad Wagenaar and Paul Botts mitigation, reduction and control of damaging events that can negatively impact business assets and reputation. Today, more than ever, this partnership and protection is vitally important.

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Nan Inc.’s Fort Shafter Barracks project was bonded by Aon Risk Services, Inc. of Hawaii. March 2011 | Building Industry | 39

both project and market risk.” •B rian Hart, Hart & Shinohara — “What lenders are looking for is a healthy, viable project with real equity to begin with — and cash. This means either large developers or ones with very solid and strong cash-positioned balance sheets.”

Brian’s Contracting, Inc.’s recent project, the Mission Memorial Building on King Street, was bonded by Island Insurance. 4. Using cash flow forecasting to maximize results 5. Engaging in active dialogue with agent/broker, CPA, loan

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40 | Building Industry | MARCH 2011

•T ricia Miyashiro, Island Insurance — “We continue to stress the importance of establishing a track record for certain job aptitude and sizes. It also is important for contractors to adjust their overhead adequately for this current low revenue period. Adequate capital, particularly cash balances and available lines of credit, are key to maintaining surety credit. Liquidity is highly valued. Contractors with a proven track record and strong financials will continue to receive ample surety credit. We encourage contractors to create well thought out business plans, including financial projections and adjustments for any continued economic downturns. Continued communication of both good and bad news is vital. Now, more than ever, ‘character’ — honesty, integrity and full disclosure — carry significant weight in our surety relationships.” •M ichael Grossi, Aon — “On the bonding side, the surety industry had another good year in 2010. However, the surety industry, especially on the mainland, is starting to see quite a few subcontractor failures, which eventually will lead to general contractor losses and losses for the surety industry. (Therefore) we are seeing more surety companies requiring their general contractors to bond back their subcontractors. One large mainland surety has stated that they believe it will be harder to get bonding by the end of 2011, although the contractors who are well-capitalized and have good track records should still be able to get the bonding they require.”

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Request amendments to remove or mitigate onerous contract language. Review the original contract between the general/prime contractor and the owner (in most instances, the terms and conditions of the original contract are incorporated into the subcontract, which means the subcontractor is responsible for liquidated damages, actual damages, warranties and the like outlined in the original contract.) Verify that the general/prime contractor has provided a performance and payment bond to the owner by obtaining a copy of the bond. Request verification of funding for private works projects. Pay suppliers within the terms and conditions agreed upon.

Index Builders Inc.’s renovation and painting project at Koko Head Elementary School was bonded by Hart & Shinohara, LLP. • Melissa Current, First Insurance — “Some of the things that general/ prime contractors can do to retain their surety program and obtain surety support for larger projects are: 1. Keep in close contact with your surety underwriter; apprise them of any changes to the business plan, financial structure or key people. 2. P rovide timely interim and year-end reporting of required underwriting information. 3. R equire subcontractors to bond back their portions of the project; specifically critical-path subcontractors or those with a large portion of the project under

their responsibility. 4. J oint-check subcontractors and their suppliers, especially those with which there is little direct experience, though it may make sense to do so even in relation to regularly utilized organizations.” Current says subcontractors can best protect themselves and their surety programs by following recommendations one and two above as noted for general contractors, plus: “Meticulously review all terms and conditions of contracts you are asked to enter into with the general/prime contractor and request that the surety agent and/or underwriter also review the contract prior to it being signed.

• J im Newberry, Island Insurance — Newberry, assistant vice president and risk control manager for Island Insurance offers another important area to consider: “ Confirmed research indicates that the cost of effective safety programs has a positive impact on an organization’s financial results, especially when it comes to indirect or ‘uninsured costs’ of accidents. Additionally, controlling the direct or ‘insured’ costs of accidents will help regulate your long-term insurance costs.” • Tom Cabrinha, Erwin Cabrinha and Au — “In today’s challenging environment, access to credit becomes all the more important. To facilitate this access, it is vital (especially for those in the competitive and challenging construction market) to have complete and readily available financial and operating information.”

As an apt closing to this report, we repeat a quote from Zurich Insurance’s Tim Fanto, who says, “Contractors are the foundation of our economy. They will continue to succeed if they continue to adapt to both product and market risk.” And that’s something most of you are doing very well. BI

42 | Building Industry | MARCH 2011

HotTopic

Group Builders and Tradewind Insurance vs Admiral Insurance This is the lawsuit that is creating alarm not only in Hawaii but across the mainland due to the potential dire effect on every contractor and subcontractor in the state and elsewhere. At a recent general membership meeting of the BIA (Building Industry Association) of Hawaii, the issue was addressed by Karin Holma, a partner with Bays Deaver Lung Rose & Holma Attorneys at Law, who has 19 years of experience in construction law. Holma outlined the history of the lawsuit, which stems back 10 years to the construction of Kalia Tower at Hilton Hawaiian Village, where mold was discovered upon completion. “Hilton sued just about everyone involved in the project,” Holma says, including Group Builders, who had installed the EIFs (exterior insulation finishing system). When Group sought a defense for the lawsuit, Admiral, Group’s carrier, said “no,” it would not defend, indemnify or otherwise provide coverage on the claim. Following a settlement with Hilton for most of the claims involving several parties and insurance carriers, including Group and Tradewind, Group assigned to Tradewind its claim against Admiral. The case went to the circuit court where it was determined there was no coverage. It then went to the Intermediate Court of Appeals, which ruled that “construction defects” are not “an occurrence” under CGL (commercial general liability) policies, meaning that under CGL policies, there is no coverage for bodily injury or property damage arising from construction defects. Stressing “why this ruling is wrong,” Holma says, “Contractors have paid premiums for this coverage. Carriers have covered these claims. The language of the policies indicates there is coverage. The lawyers just want the court to enforce what is already in the policy.”

What Can You Do? Contact your insurance broker and clarify your coverage — in writing. If you have subs, check their policies as well. HB 839 and HB 924, each of which “Clarifies the laws relating to the interpretation of commercial liability insurance policies affecting construction professionals,” were scheduled to be heard on Thursday, Feb. 10. A related Senate Bill was deferred on Wednesday, Feb. 9. Follow their progress. Submit testimony if possible. If there is no legislative approval, the issue will have to wait until another similar case comes up, which then will be taken to the Hawaii Supreme Court. “This court ruling,” says Aon Risk

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Guam Report: Meet the Locals By Jason Soeda

No one can deny the military buildup on Guam is creating new opportunities for local builders. So who are they? In this report, we examine the top building companies and delve into how they began. Weâ&#x20AC;&#x2122;ll also show you how the influx of military and civilian personnel will affect their bottom lines.

44 | Building Industry | MARCH 2011

Starry Night Before we begin the report, let’s look back at the Guam Contractors Association (GCA) Excellence in Construction awards show held in November. Who were the biggest stars at the gala? Which projects were deemed the best of the best in 2010? dck pacific guam, LLC received three awards for its work on the Coast360 headquarters: Excellence in Construction - $10 million to $25 million, commercial category; Excellence in Construction – For Building a Greener Tomorrow Through Leadership in Energy and Environmental Designs (LEED) Initiatives; and the 2010 First Place Overall Project of the Year Award. Our first question for dck: How does it feel to be recognized by an association such as GCA? Louis DeMaria, senior vice president of dck pacific guam, says, “Over the last four years and, in fact, throughout its 25-year history on Guam, dck has repeatedly been recognized by GCA via awards for our projects. In the last four years we have won more awards than any contractor member of the GCA, which is truly an honor. We, as employees of dck, work very hard to build and improve our reputation in the community, with our clients and among our competitors. We place an especially strong emphasis on our safety programs so our employees and dck’s subcontractors remain confident they will always work in a safe environment. That has allowed dck pacific guam, LLC to go over four years and close to 3 million man-hours without a lost time injury. The GCA awards are the end result of our efforts and we are very grateful for this recognition.” DeMaria describes dck pacific guam’s history and relationship with the GCA: “dck pacific guam, LLC has been a member of GCA since opening an office on Guam in 1985. GCA represents the Top right, photo 1: Project Engineer Jun Dela Llana and Safety Manager Tristan Aldeguer of dck pacific guam accepting award for the Coast360 project, first place Overall Project of the Year from Melanie Palomo, GCA board director At this naval facility job site, Allied Pacific Builders is removing and replacing pumps for process and transfer management of water and wastewater.

Photo 2: Karen Storts and Tristan Aldeguer accepting award for dck’s Joint Region Marianas Headquarters, Renovation $10 million to $100 million Photo 3: dck’s Todd Johnson, MEP project manager, and Rick Leone, MEP operations manager, accepting award for Johnson Controls, Inc. PV system, Other Specialty Construction, more than $1 million Photo 4: GCA named Black Construction Corp. the 2010 Contractor of the Year. MARCH 2011 | Building Industry | 45

interests of Guam’s contractors, so dck, as one of the larger contractors, has maintained an active role in formulating policy, philosophy and identifying the activities performed. For example, numerous dck employees have served as GCA chairmen, and/or on the board of directors, and regularly help GCA with charity events, fundraisers and community outreach activities. The primary benefits include having a forum for discussing the events of the day, helping develop broad-reaching legislation that improves the quality of life on Guam and interacting with other members of the association.” DeMaria tells us which aspects of the Coast360 Federal Credit Union dck is most proud of: “dck pacific guam, LLC was selected early in the design process and was able to provide assistance to the designer and improve the constructability of a number of features within the building, allowing the owner to truly realize a best value project. Often when contrac-

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tors are involved only after a design is completed, the ability to make changes is limited and can mean the client doesn’t get the most efficient design. We developed a relationship of trust with the architect and client on the project, which made resolution of issues much easier as everyone was truly working toward the same goal. This mutual trust allowed the team to focus on resolutions rather than problems throughout the project. We were also very excited to be involved with a “green” project and feel it is an important step forward for the way businesses on Guam help protect our island resources for the future. At the end of the day we were able to provide the client with a building that they are very pleased with and this resulted in a very satisfying project for us.” Another big star at the GCA event was Black Construction Corp. (BCC). The company received the coveted 2010 Contractor of the Year (COTY) award, and its Repair South Runway project at Andersen Air Force Base

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was named Design-Build Project of the Year and was first in its class in the infrastructure/heavy category. Leonard K. Kaae, Black’s senior vice president and general manager, says, “On behalf of the Black group of companies, we are both honored and humbled by the nomination and ultimate accomplishment of winning the title of 2010 Contractor of the Year. As an organization, we strive to attain certain feats that continue to elevate the quality of work we perform as well as the quality of life for all who call Black their home. Our commitment to the communities in which we operate is steadfast and unwavering; we stand behind each and every project we execute and winning the title of COTY is a true testament of that commitment. We proudly acknowledge the importance of and will uphold the expectations and responsibilities that accompany this prestigious title.”

Warm Welcome We now introduce you to several companies renowned for performing high-quality work on Guam. Instead of each company simply providing a laundry list of noteworthy projects, we asked top officials to describe their history on Guam and tell us why it’s great to be there. They’ll say how the military buildup affects their company and whether or not 2011 is turning out to be a banner year…

Sturdy Support Hawaii firm Baldridge & Associates Structural Engineering (BASE) is an active participant in the Guam construction industry, where it began doing work in 2000. Company president Steve Baldridge’s first visit to Guam was in response to the 1993 earthquake to assess damages to several significant structures. Baldridge describes Steven Baldridge, his company’s BASE president strengths on Guam: “Our specialties include structural engineering, antiterrorism/force

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nice form of Aloha with the locals there.” How is the military buildup affecting Baldridge’s business? “We have been fortunate to be a member of a strong design team that has landed a multiyear contract with the military. The prospects look good for a reliable and relatively stable flow of work with the military.” Baldridge tells us his outlook for Guam’s construction industry in 2011 and beyond: “The much anticipated ‘gold rush’ of work has not happened but that is just fine with us. We have some good consistent work and are enjoying the work that we are doing in Guam.”

Grand Designs RIM Architects Guam principals: (from left) Brent Wiese, Christine Wolke, Phillip Noret and Tim Armour protection (AT/FP), blast analysis and performance based seismic design. We are also considering providing on-site quality control services, called special inspections, during construction.” Baldridge adds: “Our primary reason for doing business in Guam has been to better serve our existing clients. We have landed some new clients in Guam and have also found Guam to be a good springboard for other work in Asia. There is an interesting sense of camaraderie amongst the ex-pats working in Guam and a unique and

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Joe Pangelinan, job captain for RIM Architects, describes the company’s involvement in Guam: “RIM Architects offers design, construction administration, LEED administration, interior design and planning, space planning and programming services in Guam, to name a few. Guam has a multi-faceted industry which is exposed to Western, Micronesian and Asian economic cultures. Not only has Guam become the focal point of the Pacific within the past five years, but it has become a bridge between Western trading ideas and Asian economic flourishes. Its geographic location gives it a strategic advantage to feed off the economic growth of neighboring Asian countries while allowing the U.S. to maintain a strong and astounding military presence

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capable of supporting U.S. military bases in the Pacific and war operations in the Middle East.” Tim Armour, managing principal, explains RIM Architects’ history: “RIM Architects (Guam) has been involved in Guam’s architectural community since 1987. RIM provides a full range of architectural and interior design services with a local staff of 21. Our local architectural team has accomplished literally hundreds of projects over a 24-year period. Over that time, our local team has developed exceptional design and technical-solving skills, and construction document production capabilities. A skilled team of construction management, intern architects, draftsmen and strong administrative support staff backs up our Guam office. RIM Architects offers our clients the benefit of our special knowledge of local conditions and requirements while achieving exceptional architectural design and responsive service.” RIM’s Pangelinan explains how the U.S. Marines’ move from Okinawa to Guam will affect the firm’s business: “The expectation is that it will improve the construction and design industry. The demand for new infrastructure and additional support facilities will be required for military operations. Domestic and foreign revenue will be infused into the local economy to support the population growth. All this is expected to generate new projects that will create increased profits for the construction and design industry.”

RIM Architects team on Guam: (from left) Inna Wiese, job captain; Joel Surmieda, project designer; Joseph Pangelinan, job captain; and Ethel Mercado, interior design

Industry Allies Willie Alicar, president and CEO of Allied Pacific Builders (APB), explains the company’s origin: “Allied Pacific Builders is a corporation that started in Hawaii in 2002 as a general contractor. In 2003, the company attained its 8(a) status with the U.S. Small Business Administration. Currently, in addition to APB’s 8(a) status, it is also a certified Hubzone. APB started doing business

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Watts Continues Support for Build-up In 2014, military service personnel will be treated at a new, technologically advanced hospital to be constructed by the joint venture Watts Webcor Obayashi A JV, according to an announcement from Watts Constructors. The Navy held a groundbreaking in January for the $158 million facility in Agana Heights. The new 282,000-square-foot hospital will house 42 inpatient beds and six intensive care unit beds. The facility will be a “green” sustainable facility, planned to gain a Leadership in Energy and Environmental Design (LEED) silver rating. “Watts is so pleased to be a part of the buildup to support our service men and women,” says Denny Watts, president of Watts Constructors, LCC (managing partner of the joint venture).

in Guam in 2006 but did not have a local contractor’s license yet. In 2007, APB formally started as a locally licensed Guam contractor and established the local office in the Tiyan Barrigada area.” Alicar describes the company’s mission: “APB’s mission in Guam is to become a key player in facilitating the work needed to support the

Watts Constructors, which is a Hawaii-based company, is also serving as the managing joint venture partner for the Apra Harbor Wharf Improvements for $85.9 million, under the design-build Multiple Award Construction Contract, awarded to Guam MACC Builders A JV. Watts Constructors currently has more than $410 million in federal contracts under construction across the Pacific, in Singapore and on the mainland. In January, Watts Constructors also announced a significant milestone — three million work hours without a lost time injury. The company says that over a four-year period of construction on multiple and diverse projects, Watts reached this remarkable milestone by making their safety programs a top priority.

military expansion as well needs of the local community. At APB, we always aim to balance the needs and welfare of our employees, sensitivity to local ways and customs and upholding the excellent workmanship that we are proud to represent.” “Allied Pacific Builders’ specialties in Guam include steel erection, iron works and welding, roofing, epoxy

coating, roll up doors and fencing,” says Alicar, “and as a general contractor, we specialize in building renovation. “It is good to do business in Guam due to the current ongoing military work that is highly likely to increase over the next several years. Federal contracting has always been a good source of revenue and income as long as it is structured and managed properly. The military projects will trigger the growth of business in many other sectors such shipping lines, hotels, airlines, food establishment, etc. paving the way for more jobs to be created outside the construction arena.” How will the military buildup affect Allied Pacific Builders? “The movement of the Marines predicated the military expansion in Guam and this is definitely the main reason why there will be a lot of construction activity in the area. APB feels confident that we will get our fair share of military work as we have already established our relationships with the military contracting agencies as are the other numerous contractors who we are partnering with or doing work for as a subcontractor.”

Seamless Transition Discussing some of his reasons for pursuing Guam work, Guy Akasaki, president and CEO of Commercial Roofing & Waterproofing Hawaii, Inc. (CRW), says, “One of the benefits of doing business in Guam is that it is 50 | Building Industry | MARCH 2011

Allied Pacific Builders, Inc. repairs structural roof cracks at a building on Andersen Air Force Base. an American Territory foreign port. The IRS tax code mirrors the revenue and tax code of Guam. (Taxes are paid to the government in Guam not to the US IRS.)” The firm recently opened an office in the area. The first step to successfully conducting business in Guam, Akasaki says, “is acquiesce to the local economy and build relationships in the area.” Akasaki explains he started several years ago with the acquisition of a small general contracting entity, which became the Guam arm of Allied Pacific Builders, a strategic alliance company for which Akasaki is chairman. “The intent was to establish its core values, systemic construction controls, and financial controls and acquiring of federal IDIQ contracts This grocery store roof repair by Allied Pacific Builders involves the removal and replacement of 14,400 square feet of metal roofing and insulation. The 25-year-old roof poses many challenges, especially since the supermarket is a 24-hour operation.

to make a profit in anticipation and strengthening for the buildup which has started more solidly from November 2010.” So far, Akasaki adds, the firm is doing very well in terms of accessing military work Akasaki adds: “Concurrently with this acquisition and the establishment of a seamless integrated Guam general contracting initiative, CRW has acquired more than 70,000 square feet of warehouses, apartment buildings and 15 acres of industrial land in anticipation of the buildup of work requiring warehousing, housing for workers and staging areas.” As the buildup progresses, Akasaki plans to introduce a composite building system which, he says, is tested to withstand wind loads in excess of 200 miles an hour and seismic activity three times that of the Northridge, Calif. earthquake, with an insulation rating of R40 walls and R100 roofs, without the need for concrete or steel reinforcing. So far, Akasaki comments: “Taking economics into consideration, the movement of Marines to Okinawa will infuse close to a billion dollars of work into Guam’s economy, equal to a 30 percent growth. By comparison, Hawaii’s economy five years ago was at a 6 percent growth, and Beijing and Shanghai growth are at 10 percent and 11 percent respectively, so 30 percent is extremely high.”

Filling a Universal Need Pural Water Specialty Co., Inc. is a specialty contractor providing services for niche markets for the potable and non-potable water systems along with specialty mechanical process programs and solutions. Some of the specialty services are: backflow testing, repair and installation; steam and hot water boiler services; closed-circuit television inspection (CCTV); chlorination of newly constructed potable water systems; concrete scanning; cross-connection surveys; hydrant repair/flow testing; hot tapping; line stops; leak detection; potable/nonpotable water system operation and management; pump/valve/control services; underground utility locating; 52 52 || Building Building Industry Industry || MARCH MARCH 2011 2011

water treatment/filtration; water monitoring/ NPDES permitting; water testing; chemical water treatment.” Earl S. Ichimura founded the company in 1988. “In the early years we focused on a few water related specialty areas. Over the last 10 years, we hired key people who had the right skills and work practices which resulted in expanding of our specialty services. We also invested heavily into smart God-centered business practices and the results have been great. By serving Him and His people, we have been blessed even in this down economic times,” says Ichimura. How will the U.S. Marines’ move from Okinawa to Guam affect Ichimura’s business? “Our estimators have been bidding various projects in Guam providing specialty niche water and utility related services. We are optimistic that we will obtain some of the jobs we are bidding,” says Ichimura. “Our outlook for 2011 and beyond is positive.”

Future’s So Bright “We are eagerly awaiting the release of the large projects slated for Guam,” says Bruce Greek, president of JBL Hawaii Ltd., a long-time builder in Guam who puts great value in the business relationships he has developed on the Bruce Greek, president of JBL Hawaii Ltd. island. “We have done business in Guam for many years and some of the same contractors in Guam are also in Hawaii so the relationships are already there.” Greek says JBL has been in business selling division eight and 10 products for over 40 years and is the largest stocking distributor of doors and hardware in the Pacific. Is Greek optimistic about the amount of military-related work coming his way? “We are already looking at opening a branch in Guam to be able to better

serve Guam’s needs,” he says. So what is Greek’s outlook for Guam’s construction industry in 2011 and beyond. Quite simply, he says, “I believe Guam is going to be a very busy place to be for the next decade and look forward to spending more time there.”

Productive Partnerships We close this story with final comments from dck pacific guam, LLC. What are their observations on the military buildup on Guam and its creation of new jobs for locals? “At this point, the effects of the buildup are still to be fully realized,” says Louis DeMaria, senior vice president of dck pacific guam, LLC. “There is clearly an uptick in the tempo of small construction projects and investment is starting to grow. There are few large projects awarded to date though and investments made over the last few years by contractors and other businesses are a ways from paying dividends.” The company explains what it’s like to support and partner with U.S. military forces that safeguard our freedoms: “It is a reciprocating and very successful relationship,” says DeMaria. “Recently completed projects like the $330 million Hawaii Regional Security Operations Center, three DODEA (Department of Defense Education Activity) schools on Guam, the $19 million Joint Region Marianas Command Center, $17 million FENA Water Treatment Renovations project, and $18 million Anderson Medical Dental Clinic were outstanding successes.

“We feel privileged to be given these and many more opportunities to provide military construction services that aid in the national defense effort while also receiving various project and industry awards and commendations for our efforts.” BI MARCH MARCH 2011 2011 || Building Building Industry Industry || 53 53

ConceptToCompletion

Maui Arts and Cultural Center

Yokouchi Family Pavilion and Courtyard

eferred to as “the completion of Pundy’s dream,” R the Yokouchi Family Pavilion and Courtyard at the Maui Arts and Cultural Center brings full circle a vision that began with discussions and preliminary planning in 1983. The long-term project’s planning committee at that time was headed by the late Masaru “Pundy” Yokouchi, a long-time patron of the arts in Hawaii, who served as founding chairman of

the State Foundation on Culture and the Arts. Pundy served as chairman of the Maui Arts and Cultural Center until his death in 2006 and was instrumental in raising the $32 million needed to build the center. The Maui Arts and Cultural Center began construction in 1993 and today celebrates the completion of its new addition, fittingly named in honor of the man who helped bring the original dream to reality.

54 | Building Industry | MARCH 2011

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Maui Arts and Cultural Center Yokouchi Family Pavilion & Courtyard

Courtyard area during the construction phase determinants of how the buildings are placed.” The new pavilion addition “will attain the magical qualities of evening performances under the stars while enabling high technology provisions of sound and lighting.” This combination of ethereal beauty and state-of-the-art technology is apparent throughout the Yokouchi Family Pavilion and Courtyard, from the outdoor amphitheater to the many new service areas. “The project was a renovation to the existing facility,” Roger Wark, project manager for general contractor Honolulu Builders, tells us, “which houses the Castle Theater, Schaefer International Gallery, The McCoy Studio Theater, the Yokouchi Founder’s Courtyard and the old Alexander & Baldwin stage which is now gone and has become part of the new pavilion amphitheater.” What was envisioned as the underlying need for and function of the Yokouchi Family Pavilion and Courtyard? “The newly completed project,” explains Wark, “was designed to

add a new world-class outdoor pavilion amphitheater, new founder’s courtyard, an upstairs gathering hall and lanai which opens into the existing Castle Theater, a new commercial kitchen to act as a caterer’s prep area, a large 60-foot-long service bar and two upstairs host stations to serve patrons, new public restrooms, new 1,500-square-foot storage building, a laundry, and various mechanical and electrical rooms.”

Scope of Work

The project site began, says Wark, with the demolition of the old amphitheater, founder’s courtyard and public restrooms. “The site for the new project was sandwiched between the existing Castle Theater and Schaefer Art Gallery, making for a very tight construction site.” Adding still another challenge for the Honolulu Builders team was the fact that both of these existing Maui Arts and Cultural Center facilities remained open to the public throughout the construction phase as did all other

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on-site buildings and facilities. Wark offers a few interesting bits of project trivia and “fun facts”: • 288 pieces of glass cover the pavilion with 450 pieces of glass in all of the combined skylights. • Five miles of electrical conduit were installed. • 60 miles of electrical and control wiring were used in the project. • 1,500 concrete masonry units have been installed to date. • Over 1,000 cubic yards of concrete went into the project. • The height to the top of the Yokouchi Family Pavilion is 50 feet. • 156 jobs were created as a result of the project. The new addition is not the first project Honolulu Builders has been involved with at the Maui Arts and Cultural Center. The Hawaii-based company, which made Building Industry magazine’s most recent list of “Top 25 Contractors,” previously completed a new administration building at the center’s Kahului site. “We were privileged to be awarded the contract for the new Yokouchi Family Pavilion and Courtyard designed by John Hara Associates Inc., architect for the Maui Arts and Cultural Center from its beginning,” says Honolulu Builders principal Dan Jordan. “His vision and the MACC’s commitment to that vision, allowed John Hara’s design eloquence to create what soon will be considered a premiere venue for cultural and entertainment events in the State of Hawaii. We are so thankful to have been a part of it.” BI

Mahalo! Building Industry magazine would like to thank the following subs and suppliers for supporting this special section: • Skylights of Hawaii • JD Painting & Decorating, Inc. • RME Construction Supply Co.

LowBids The companies below submitted the low bids in January for the work detailed. Submitting the lowest bid is not a guarantee of being awarded the job. However, it is a strong indication of future work, and subcontractors can plan accordingly.

Oahu Walsh RMA Joint Venture..... 37,872,000 FY10 MCA PN55274, Tactical Equipment Maintenance Facility - Schofield Barracks RK Construction, LLC............. 2,295,142 Energy Efficiency and Conservation Block Grant Improvements - Pearl City Bus Maintenance Facility Commercial Electric, Inc........... 760,000 Hawaii State Hospital, Various Locations - Replace Transformers and Switchgear

Hawaii CMK Builders, Inc..................... 199,940 East Kapolei II Offsite Drainage East Detention Spillway Grading and Nonpotable Relocation in Ewa Villages Golf Course Island Construction & Demolition............................. 124,910 Repair Kalapaki Street Drainage Ditch Wall GP Roadway Solutions, Inc....... 110,675 Guardrail Repairs at Various Locations

RK Construction, LLC................ 625,383 Halawa Corporation Yard - Interior and Welding Shop Renovation

GP Roadway Solutions, Inc......... 41,995 Sign Replacement at Various Locations

Willocks Construction Corp....... 443,728 Jack Hall Memorial Rental Housing - Cesspool Closures and New Sewer Connections

Maui

Commercial Electric, Inc........... 407,600 Energy Efficiency and Conservation Block Grant Improvements - Kapolei Hale Lighting Improvements Commercial Electric, Inc........... 229,700 Neal Blaisdell Center Concert Hall - Transformer Replacement

Maui Kapono Builders............... 139,149 Maui Raceway Parking Drag Strip Resurfacing, Puunene Valley Well Drilling LLC................ 52,093 Molokai Integrated Solid Waste Facility Installation of Landfill Gas Monitoring Probes, Molokai Goodfellow Bros., Inc.................. 50,623 Maui Dive Shop Lateral Repair, Kihei

MARCH 2011 | Building Industry | 57

Isemoto Contracting Co.........1,091,664 Keokea Beach Park - Modifications and Restoration, Kiholo Bay Earthquake Project Coastal Construction Co....... 1,051,034 Kamakoa Nui Model Homes, Waikoloa, South Kohala William Loeffler Construction.... 526,035 Keaau Recycling and Transfer Station Repairs and Enhancements, Puna Certified Construction, Inc........ 221,662 Edith Kanakaole Multipurpose Stadium New Roof Coating, South Hilo Goodfellow Bros., Inc.................. 31,150 Island Wide Bus Stops and Shelters (West Hawaii), South Kona

Kauai Shioi Construction, Inc.............. 247,000 Retrofit of Piikoi Building - FEMA Hazard Mitigation Grant, Lihue

NewsBeat

Get Certified – EPA RRP Inspectors Coming in May By Nate Seward, PE, CIH, LRCIA Black lighting shows students how much lead can be disturbed. Last year, the U.S. Environmental Protection Agency (EPA) announced the passing of the Renovation, Repair and Painting Rule; 40 CFR 745 (also known as RRP), which requires contractors to become certified and work safely around lead paint. Now, enforcement teams are scheduled to perform random violation inspections throughout the Hawaiian islands (except Molokai) this May, according to EPA Region 9 headquarters. Region 9 covers California, Nevada, Arizona, Hawaii and the Pacific Territories. Federal EPA has been enforcing the lead RRP regulation, which carries some extremely serious consequences. Penalties of the RRP regulation can reach as high $37,500 per violation. Although the RRP regulation went into effect on April 22, 2010, the mistake that most people are making is that they think this law only pertains to the painters. Wrong. The RRP law is intended for anyone who disturbs lead-based paint (LBP) or presumed lead-based paint in

Criterion Environmental Training conducted an RRP certification seminar in early February for the Hawaii chapter of the Associated Builders & Contractors, Inc. The class included hands-on training.

pre-1978 properties. The RRP rule requires those that disturb LBP to be certified by an EPA-approved trainer, which requires a one-day training class. Along with the individual certification, contractors, property managers, pest control operators, painters, plumbers, maintenance/ facilities personnel, or anyone doing renovation work will be required to follow a defined set of standards to stay in compliance with the new RRP lead paint law. The new RRP requirements are not as limiting and restrictive as most people think. The EPA’s intention is to force contractors to work safer around lead. Lead is extremely toxic and millions of Americans are still being poisoned from lead dust created during renovation and construction projects. There are a variety of significant health problems associated with lead poisoning. According to EPA, lead poisoning is something that needs to be eliminated, especially since lead poisoning is 100 percent preventable. Since the RRP rule was adopted, there have been questions relating to the levels of enforcement for civil and criminal violations. The EPA answered these questions by recently releasing a document that details the enforcement guidelines for violations of the RRP lead paint regulations. This document is called the LBP consolidated Enforcement Response and Penalty Policy (ERPP). The new ERPP document has defined tables of levels of fines based upon the type of violation, gravity of the violation and guidelines for modification of penalties. Worthy of notation is a section that addresses the ability to pay and continue in business. It appears that the EPA goal is not to put contractors out of business but rather force compliance and levy fines based on actual ability to pay the fines and associated penalties. This is important, and it’s essential that contractors not wait until it’s too late. BI (Nate Seward is the training director of Criterion Environmental Training, an EPA-approved training provider that offers classes in English and Spanish throughout the Western U.S., including the Hawaiian islands. For more information, visit www.theRRPtrainer.com or e-mail Nate Seward at nate@ therrptrainer.com, phone: (805) 644-8347, ext. 101.)

58 | Building Industry | MARCH 2011

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