AGC of Minnesota Annual Report 2023

I am pleased to share this copy of our 2023 AGC Annual Report and I encourage you to spend a moment to review some of the many valuable accomplishments delivered this past year. 2023 has been a year of historic and transformational investment in construction, opening new future opportunities for you to grow your business and sustain your business model. Along with this great success, there have been inevitable challenges impacting business operations with new regulatory and operational requirements. Throughout the year, AGC has been your proven partner, helping you navigate the challenges and providing expert resources that allow you to outpace the competition. I am extremely proud that your AGC team has been recognized by our national AGC peers as a premier chapter, delivering excellence in the diversity, equity, and inclusion space.

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CEO SUMMARY

AGC of Minnesota membership brings ...AGC is value to your construction business every where ideas are day. Sometimes that value is tangible and transformed apparent, while in other circumstances you into actions that may not realize AGC is there promoting bring results. your interests and protecting the industry and its markets. Your AGC team is the best in the industry, and as a member, you have access to some of the most talented and connected staff in the country. Whether you care about industry advocacy, education and safety programs, talent development, or expanding and growing your business, AGC is where ideas are transformed into actions that bring results.

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As we close the year and focus on opportunities ahead, we look forward to increasing the value of your membership and providing new and exciting resources that allow you to build and strengthen your business. Thank you for being an AGC of Minnesota member and for caring about the future of your business and your industry. We remain Your Trusted Resource.

Tim Worke CEO

AGC OF MINNESOTA

2023 ANNUAL REPORT

LEGISLATIVE ADVOCACY The United Voice of the Minnesota Construction Industry

The 2023 legislative session was one for the history books with unprecedented pace and productivity. A DFL-led legislature, backed by Governor Tim Walz, set out to implement their budget and policy priorities discussed on the campaign trail and clear a legislative backlog after years of divided government. Working with direction from the member-led Legislative Committee, the AGC of Minnesota government affairs team:

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United a strong legislative coalition of over 30 organizations to push for the largest jobs and public projects bill in the state’s history resulting in $2.6 billion in capital investment

Led the Transportation Advocacy Coalition, made up of employers and Minnesotans who build, maintain and rely on the state’s transportation system, to pass sustainable, ongoing funding, fully dedicate the sales tax on auto parts to transportation and match federal dollars from the bipartisan infrastructure law

MICROPHONE

Testified over two dozen times in front of legislative committees and submitted over 30 letters into the public record to educate legislators about the opportunities and challenges of proposals affecting construction

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Set record-breaking number of Day at the Capitol attendees, who met with key committee chairs and construction champions

Delivered four webinars after the legislative session wrapped up

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Produced the industry's most comprehensive legislative session summary on the laws, bills, and regulations affecting construction

Achieved representation on numerous legislative task forces including infrastructure resilience, safety, and environmental standards

AGC GOVERNMENT AFFAIRS TEAM:

Laura Ziegler

Tom Murphy

Sarah Psick

SAFETY SERVICES Expanded AGC Safety Staff

Responding to the success and exponential growth of the Construction Health and Safety Excellence (CHASE) cooperative compliance partnership with MNOSHA, AGC onboarded a new staff member this May. David Williams joined us as the CHASE Administrator, conducting annual audits of each of the 52 CHASE contractor participants, as well as joint monthly reviews of approximately ten CHASE Level 3 project with MNOSHA staff.

You'll find Dave on the road most days, visiting projects from Duluth to Rochester.

He's also brought the AGC office up to a higher safety standard, installing a first aid cabinet and AED unit.

Record-Breaking Year for CHASE

CHASE contractors continue to exceed their own collective record, achieving lower incident rates nearly every year for two decades. The 1.12 average incident rate shared by this group of safety-conscious contractors is something that gives AGC a tremendous amount of pride. CHASE job sites are 76.67% safer than the average Minnesota construction job site, which means that employees of CHASE contractors are more likely to be sent home safetly to their loved ones each day. With 33,074,783 work hours reported by CHASE contractors, a 1.12 incident rate is cause for celebration.

AGC Committees Tackle Safety While standing the test of time, the AGC CHASE program has been the quintessence of an ever-improving safety culture. To improve CHASE, AGC is developing a CHASE Committee to assume ownership of the CHASE program and its requirements. This change will facilitate discussion about needed program changes, will broaden CHASE ownership to better reflect AGC’s diverse membership and ensure its continued existence for further generations.

The AGC Safety Committee has commenced another year of advanced safety management discussions. AGC’s safety committee is dedicated to elevating the conversation around safety and with a focus on leadership with discussions ranging between Artificial Intelligence to incoming legislation.

Evolution in project delivery, contracting methods, safety specifications, technology, workforce demographics, regulations, training/experience levels, and owner expectations require the contribution of all participants, making these discussions effective and relevant.

2023 REPORTED CHASE CONTRACTOR INCIDENT RATE:

1.12

LABOR AND LEGAL SERVICES AGC of Minnesota provided a bakers’ dozen of legal and labor (including employment) services.

1. CONTRACTING We have five form construction

contracts characterized by others as “project oriented not a specific party [e.g. architect] oriented” and “the gold standard of form construction contracts.” The contracts feature drop down and fill-in options to make them flexible for a variety of different projects and markets, and license provisions so parties can rely that the other party does not make hidden changes that require a close review. New important terms this year include redressing wage theft liability, cannabis use, notice for Inflation Reduction Act and DavisBacon Act requirements, and adjustments for duty to defend legislation.

The contracts committee is looking to add new forms for residential and maintenance work

2. CANNABIS GUIDANCE Our legal and labor department generated a zero-tolerance position to cannabis use

meaning that we believe the new cannabis statute does not apply to anyone who is on the construction jobsite; rather, the laws before the new statute (that legalized recreational use) applies. We developed a poster alerting employees of this position and included specific terms in our form contracts to reinforce the ability to test and discipline for cannabis use.

3. WAGE THEFT Wage theft is a growing issue and the legislation

around it is swelling. Our legal and labor department developed first ever contractual terms to redress the open and expansive liability a contractor could face from unknown wage theft by a downstream contractor. We also have sponsored several webinars to explain how best to handle concerns of wage theft, and successfully recruited a software company to join AGC-MN to explain and make available a system to provide real-time checks on wage theft compliance.

4. EARNED SAFE AND SICK TIME The new ESST legislation is complicated, costly, and concerning to the construction industry. AGC has provided

webinars, research, and advocacy to figure out best strategies to implement a private ESST program, estimated the cost of ESST based on wage rates and utilization, and worked with the basic trades to waive this bad-fit ESST and develop an ESST program more suited to construction workers.

5. BARGAINING AGC met with the basic trades and negotiated fourteen new collective bargaining

agreements for both Highway Heavy statewide and Building in Northern Minnesota markets. The bargaining initiated with a kickoff event in Hinkley with an economic presentation by Ken Simonson (AGC of America’s chief economist) and local data on the health of the fringe funds, wage rate histories, and important issues; and concluded with robust discussion on contractors’ needs, concerns, and hopes.

6. GRIEVANCES AND DISPUTES AGC helped facilitate conversations to resolve disputes with employees or

other contractors, or, when that failed, organized neutral dispute boards to hear and decide the dispute. The dispute board is helpful and critical when the contested amount is small, the distraction big, or the dispute jeopardizes the relationship by providing a fair and quick decision.

7. CLE CREDITS AGC continues to provide legal education programs that give continuing education credits.

8. IN-HOUSE COUNSEL FORUM An informal conversation

with the person down the hall can often be vital. Most in-house counsel lack that person down the hall who is in the same space or dealing with a similar problem. Our IHC Forum provides the chance to share best legal practices to improve the practice, support ethics, and promote the industry. The IHC Forum also helps review the form construction contracts, input on legislation, and highlight issues of concern to the industry that AGC should help.

9. LABOR CABINET The many different markets and

regions of Minnesota entail different labor and employment issues. AGC’s labor cabinet represents this diversity and helps AGC stay informed and ahead of concerns that may affect contractors.

10. OTHER LEGAL CHANGES With so much focus on wage theft, cannabis, and earned safe and sick time, it could be easy to lose track of other changes such as new Davis-Bacon rules

LABOR AND LEGAL SERVICES and Inflation Reduction Act apprenticeship requirements. AGC published and hosted webinars on these laws, their impact, and strategies to comply.

11. TRADE INFORMATION Our Labor department provides one-click access to important trade information such as collective bargaining agreements, wage sheets published by the unions, and AGC’s consolidated wage sheet that has all trades listed in the same format plus additional information to help process payroll and report wages for prevailing wage purposes.

12. OTHER EMPLOYMENT Labor also supports general employment questions,

participating in our HR Forum and providing updates employment law developments, such as expansions this year to the Minnesota Human Rights Act.

13. ADVOCACY Finally, the Labor and Legal Department advocates for best standards and

practices in the industry. This advocacy ranges from participating as an amicus curae in construction litigation to staking positions on important and potentially controversial topics such as which laws apply to modular construction to speaking and publishing on new topics.

For more information or help with a Legal or Labor topic, contact Mike at mschechter@agcmn.org.

AGC OF MN FOUNDATION Another Great Year for Scholarships

The AGC of Minnesota Foundation distributed scholarships this year in two categories: AGC Foundation Scholarships are awarded to students who are currently enrolled in an accredited post-secondary institution in a construction field. The Charles S. McCrossan Scholarships are awarded each year to 1-2 Minnesota residents majoring in a construction career with an emphasis on civil engineering and/or road/ bridge construction management. C.S. McCrossan founded his own Minnesota-based highway/heavy civil company in 1956 and over the last 50+ years, the business has grown into a diversified general contractor company which continues to be owned and operated IN 202 by the McCrossan family.

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Kraus-Anderson Scholarship Gift Recognizes Long-Time Foundation Volunteer

$21,00 AWAR 0 WAS 12 STU DED TO DENTS !

Kraus-Anderson Construction and the Engelsma Family Foundation generously donated $50,000 to the AGC of Minnesota Foundation in recognition of the retirement of K-A Insurance executive Dennis Diessner. Dennis has been a long-time volunteer helping to organize and grow the annual AGC Sporting Clays Shoot. The event attracts great interest and annually raises significant dollars to support the AGC Scholarship Program. The financial gift will fund an annual Dennis Diessner Construction Scholarship awarded to an outstanding individual pursuing a professional degree in commercial construction at an accredited post-secondary institution.

MENTAL HEALTH & SUICIDE PREVENTION The epidemic of suicide within the construction industry is a crisis that cannot be ignored. Since 2020, AGC has devoted increased resources and staff allocation to the task of creating greater awareness and providing resources that allow members to take direct action within their companies.

One point of engagement has been AGC's partnership in the Minnesota Construction Coalition to Advance Worker Wellbeing. This spring the coalition held a summit for the industry, featuring suicide attempt survivor Kevin Hines as the keynote speaker. CEO Tim Worke also co-authored an op-ed with Jason George of the Operators on the critical issue of mental health in the industry.

AGC's Director of Diversity, Equity & Inclusion, Yolanda McIntosh, became certified in Construction Gatekeeper Training, a curriculum by VitalCog. This training is the first nationally recognized certified training program in suicide prevention in the workplace designed specifically for the construction industry.

VitalCog in Construction Gatekeeper Training is designed to cultivate a construction industry community of employees who aspire to eliminate the devastating impact of suicide within their companies. To date, AGC of Minnesota is the only entity certified in Minnesota that offers this training. In 2023, over 60 industry professionals were certified as VitalCog Gatekeepers. Special recognition goes to Adolfson & Peterson Construction for being the first to sign up and for sending 30 of their employees to be trained! Twelve employees of Gardner Builders were also trained this fall, and the 2023-24 Leadership Blueprint cohort participated in December.

Yolanda is also a frequent guest speaker at Minnesota State University Mankato, addressing mental health and suicide prevention with students in their Construction Management program.

Since hiring a Director of Diversity, Equity, & Inclusion in 2020, AGC of Minnesota has diligently allocated energy and resources into equipping members with the tools they need to make their companies places that foster inclusion. When everyone feels heard and included, companies are strengthened, workforce is recruited and retained, and the culture of an entire industry can be transformed.

This year we were honored to be recognized at the national level for our efforts in the DEI landscape of the Minnesota construction industry. AGC of America presented AGC of Minnesota the 2023 Diversity & Inclusion Excellence AGC Chapter Award, citing AGC of Minnesota's work in fostering inclusion among membership, publicly recognizing member firms for their DEI successes, increasing participation in Culture of CARE pledges, and highlighting mental health and suicide prevention throughout the year.

The results of AGC's annual Minnesota Construction Industry Assessment survey consistently point to company culture as the #1 factor (eclipsing wage increases and benefits) impacting employee retention. In a climate where workforce scarcity is at the top of every employer's list of concerns, creating a culture that promotes inclusion and belonging must be a primary concern for employers!

D&I CHAPTER AWARD

AGC DEI AWARDS Ames Construction, Inc.

Promoting Me, LLC

Donlar Construction

Knutson Construction

J. Benson Construction

Karin McCabe AGC of Minnesota launched its first annual DEI Awards in January to recognize member businesses for their intiatives in the diversity, equity, and inclusion space. DEI Excellence Awards were given to building (Knutson Construction), highway (Ames Construction), and greater Minnesota (Donlar Construction) contractors, along with a service provider (Promoting Me, LLC). The Diverse Business of the Year award was presented to J. Benson Construction, and Ally of the Year to Karin McCabe.

Congratulations to these members on exemplifying engagement with DEI values within the industry!

Yolanda McIntosh is AGC's Director of Diversity, Equity, and Inclusion. On behalf of AGC and our members, Yolanda frequently engages within the community as a featured speaker and committee member at organizations such as Boys & Girls Club Twin Cities (BGCTC), Lake Street Works (LSW), Ramsey County Workforce Innovation Board (WIB), St. Paul Area Chamber of Commerce (SPAC), Expand the Toolbox Think Tank (ETT), Construction Working Minds Summit, and AGC of America.

Along with community engagement, Yolanda is often found at member events presenting on DEI, Culture of CARE, and Mental Health/Suicide Prevention topics.

If you'd like to take advantage of Yolanda as resource for your next Safety Day or DEI development event, reach out to her at ymcintosh@agcmn.org.

Yolanda McIntosh presenting to participants at Lake Street Works

DEI INITIATIVES Has your firm taken the Culture of CARE pledge yet?

AGC DEI Leaderhsip Council met at KMS The DEI Leadership Council and DEI Committee-at-Large met throughout 2023, often at member locations. The DEI Leadership Council also meets annually with the AGC Board of Directors

Companies that commit to a culture of CARE aren't passively thinking about their company culture. They are actively working to ensure that every employee - from the CEO to the trades worker - has the opportunity to feel valued, respected and heard.

Join 82 AGC member firms in taking the free D&I Assessment and signing the pledge at buildculture.org.

EDUCATION & LEADERSHIP DEVELOPMENT Leadership Blueprint

AGC's flagship leadership development program, Leadership Blueprint is celebrating its 10th year this coming spring. Focused on emerging leaders, the program develops communication and interpersonal skills critical to leadership. This year's cohort of 22 participants gave the program rave reviews!

Executive Circle

Specifically for C-suite leadership, Executive Circle serves executive owners, taking them offline and away from working in their business, and redirecting their focus to working on their business. Six modules delivered over six months explore the topics of Leadership, Vision, People, Communication, Operations, and Technology.

Building Leaders

Bridging Leadership Blueprint and Executive Circle is AGC's latest leadership development program, focusing on middle management. Building Leaders takes the fundamentals of Leadership Blueprint and expands on them. More info coming soon!

Supervisory Training Program (STP) AGC of America's Supervisory Training Program is a constructionspecific training curriculum developed, updated, and field-tested by and for contractors.

Supervisory skill - or the lack of it - directly affects every company's bottom line. You make your money in the field, and STP can help you improve your organization's bottom line.

This comprehensive 6-unit program focuses on the knowlege and skills that every supervisor must have to be an effective manager of people, time, equipment, and materials.

Every STP course is activity-based, with discussions, case histories, problems, and exercises. Participants in STP courses draw upon their field experience and learn by interaction with others from all areas of the industry.

AGC of Minnesota offers all six units multiple times per year, with each unit as a five-week course (1 evening/week for 5 weeks). Classes are hybrid, with individuals in person as well as online. Participants may take STP classes in any order, and upon completion of all six classes receive a certificate of completion from AGC of America.

Courses: Leadership & Motivation, Communication, Planning & Scheduling, Contract Documents, Improving Productivity/Managing Project Costs, and Risk Management & Problem Solving.

For more information about enrolling your employees in STP, contact Matthew Semerad (msemerad@agcmn.org).

EVENTS & NETWORKING Regional Member Networking Events

AGC regularly holds member networking events in various regions of the state, allowing more members to participate. This year we gathered with members at Blacklist Brewing in Duluth, Territory Golf Club in St. Cloud, and Somberby Golf Club in Byron, where we heard from members of the Destination Medical Center team on the latest expansion plans in the Rochester area.

Summer Sporting Events

AGC's three summer sporting events are always sold-out affairs!

The Golf Tournament was another beautiful day of networking at Keller Golf Course. We watched the Saints beat the Louisville Bats from the comfort of the Star Tribune suite at CHS Field, and joined with colleagues for a day of fun, competition, and cameraderie at the 24th annual Sporting Clays Fundraiser, where $21,000 was raised for future AGC of Minnesota Foundation scholarships.

Day at the Capitol

A packed out room of AGC members met with state department heads and legislators in April, including MnDOT Commissioner Nancy Daubenberger and Dept. of Administration Commissioner Alice Roberts-Davis. The AGC government affairs team presented on the latest laws and regulations affecting the industry.

Holiday Reception

Each December, AGC throws a party to celebrate another year of working together for the good of the

Minnesota construction industry. Paired with the annual business meeting, it's always a great way of reconnecting with peers!

Recognition Evening Moves to AGC Honors

In past years, AGC held a Recognition Evening each fall, honoring individual and company achievements.

This year we've expanded and moved our awards recognition to a new event held in January - AGC Honors.

2023 AWARD RECOGNITION

2023 Lifetime Achievement Award Recipient Bob Beckel (Kraemer North America) poses with his wife, Jean.

The 2023 Skill-Responsibility-Integrity (SRI) Award was presented posthumously to the family of Tom Maanum, who embodied those character qualities in his years in the industry, primarily working for McGough Construction.

The Jeff Jensen Memorial Construction Safety Excellence Awards are presented annually to contractors who exhibit exceptional safety records in three categories. Recipients for 2023: Category I (up to 149,999 work hours) – Danny's Construction Company Category II (150,000 – 299,999 work hours) – Weis Builders, Inc. Category III (300,000 and above work hours) – Rice Lake Construction Group

Meyer Contracting, Redstone Construction, and Kraemer North America received the 2023 Joint AGC/MnDOT Bridge Awards, for their low, medium, and high-cost structures, respectively.

CONSTRUCTION SUMMIT The 2023 Minnesota Construction Summit was the industry event of the year, filled with industry-relevant education, networking, and inspiring messages from speakers such as our keynote, Jake Thompson. Breakout sessions included everything from creating an irresistible company culture, leveraging data as an asset, and next steps after creating a DEI plan to hearing from public owners on their future plans and learning the latest federal regulatory updates from AGC of America's VP of Government Relations. These two days are not to be missed each year!

THANK YOU TO OUR 2023 ANNUAL PARTNERS!

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