CONSTRUCTOR
COVERING GENERAL BUILDING & GENERAL ENGINEERING CONSTRUCTION agcsd.org
THE MAGAZINE OF THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA, SAN DIEGO CHAPTER, INC.
POLITICS AND INFRASTRUCTURE TAKE CENTER STAGE! Defeat of Proposition 6 Tops AGC’S Victories
Plus... Proposition 6 Defeated. . . Now What? Skilled & Trained Workforce Does it Apply to You? Construction Industry Faces New Laws in 2019
2018 VOLUME 4
THE VOICE OF CONSTRUCTION
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SAN DIEGO The Associated General Contractors, San Diego Chapter, Inc. 6212 Ferris Square San Diego, CA 92121 Phone (858) 558-7444 Fax (858) 558-8444
@agcsandiego
www.agcsd.org
2018 Volume 4
6 GOVERNMENT RELATIONS Election Wrap-up
16 SAFETY
OSHA's Top 10 Violations For 2018
18 ENGINEERING
Prop 6 Defeated... Now What?
20 Build & Serve
Make-A-Wish® San Diego Honors AGC Build & Serve Charitable Alliance
26 APPRENTICESHIP NEWS Skilled & Trained Workforce – Does It Apply To You?
More Inside 14 21 22 30 32
THE VOICE OF CONSTRUCTION 4
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Education Upcoming Events Fall Golf Bootcamp Challenge Technology
AGC CONSTRUCTOR Magazine is published quarterly. The opinions and assertions contained herein are those of the authors. Reproduction, either whole or in part, is not permitted without the express consent of the publisher. Copyright 2018 by AGC-SD CONSTRUCTOR MAGAZINE. All rights reserved. Advertising rates are available upon request. Call (760) 466-7790. AGC-SD Constructor Magazine, AGC San Diego, or Contractor News and Views are not responsible for content in ads submitted by AGC-SD Constructor Magazine’s advertisers. Sandy Caples: Publisher Mike Caples : Editor Jennifer Caples Flaharty : Graphic Design
GOVERNMENT RELATIONS Defeat of Proposition 6 Tops AGC's Victories... Politics and Infrastructure Take Center Stage! By Brad Barnum, AGC Executive Vice President
It's been a few weeks since the General Election, but we still can hear a cheer from the construction industry, and from the 56.8% of California voters who rejected the attempt to over-turn an important funding source for vital transportation projects. The defeat of Proposition 6 should signal to the naysayers that voters want their state highways and local roads and bridges fixed, their commute times shortened, public transportation operations and services improved, and pedestrian safety increased. Combined with the June passage of Proposition 69, which protects against any diversion of the funds, voters have sent a strong message: "We need a stable funding source for transportation projects, so don't mess with it anymore!" Speaking of sending a strong message, local voters flocked to the polls to vote on a myriad of candidates and ballot measures. Partisan politics played a large role in some of the races but investing in school construction and other types of infrastructure was a high priority for voters. Here are some of the results: City of San Diego •
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Council District 6 - Voters overwhelmingly granted AGC-endorsed candidate Chris Cate a second term. Congratulations Chris!
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Council District 2 - Incumbent Lorie Zapf faced a barrage of negative campaign mailers from the labor unions that couldn't be matched in a district with 11+% more Democrats than Republicans. Congratulations to Dr. Jen Campbell, who received nearly 58% of the vote!
•
Council Districts 4 and 8 - Labor-backed Council President Myrtle Cole lost her bid for re-election to Monica Montgomery in District 4, and Vivian Moreno bested Antonio Martinez in District 8. Congratulations to Monica and Vivian for running strong grassroot campaigns.
The City Council is now controlled by six Democrats, which means they can over-ride a Mayoral veto. However, with the Building Trades on the losing side in Districts 4 and 8, it will be interesting to see how much influence they, or others for that matter, will have on two candidates who are laser-focused on district issues. County of San Diego •
District 5 Supervisor - Congratulations to Jim Desmond! AGC was the first business organization to endorse the former Mayor of San Marcos, and he personally thanked AGC's leadership at an election night event.
•
District 4 Supervisor - With 25% more Democrats than Republicans, the race between Bonnie Dumanis and Nathan Fletcher was decided in the June Primary, when Dumanis, who was the only Republican in a field of five, finished second. That set the stage for a landslide victory for Fletcher. Congratulations Nathan!
Interesting times are ahead at the five-member Board of Supervisors. Supervisor Fletcher will be the lone Democrat for the next two years, and the outcome of the 2020 elections could very well change the balance of power.
•
City of Oceanside (Measure X) - This sevenyear ½ cent sales tax increase will generate about $11 million annually for specific priorities from a long list of public safety, capital improvements, and city services and programs.
Infrastructure Spending
•
Children's Hospitals (State Proposition 4) $1.5 billion in general obligation bonds were approved for grants to children's hospitals for construction, expansion, renovation, and equipment projects. $135 million will be allocated to Rady Children's Hospital, and $54 million to University of California, San Diego Children's Hospital.
•
•
Local School Bonds - With school safety concerns, crumbling classrooms, and leadcontaminated drinking water likely the main reasons, voters overwhelmingly supported all 11 construction bonds on the ballot (totaling $4.8+ billion). Unfortunately, the school districts with current union-only Project Labor Agreements passed their respective bond measures…Sweetwater Union High School District, Chula Vista Elementary, and San Diego Unified. Otay Mesa Enhanced Infrastructure Financing District (Measure O) - Up to $230 million in tax increment bonds were approved to finance public facilities, including roads, parks, police and fire stations, libraries, water lines, and sewers.
Needless to say, it was a successful and busy political year for AGC, and a BIG "Thank You" is in order to the members of AGC's Government Relations and PAC Committees for their leadership in directing the policy and political decisions. Add to that, the firms that financially contributed to AGC's PAC, and all the AGC members and their employees that helped "get out the vote" on Election Day. You are what makes AGC the "Voice of the Construction Industry!"
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Construction Industry Faces New Laws in 2019 By Brad Barnum, AGC Executive Vice President
Governor Jerry Brown signed 1,295 new laws in 2018, and on January 1, most of this legislation will be enacted. As a contractor and a company doing business in California, you will be impacted by several of these laws in 2019 and beyond. Below is a summary from AGC’s Legislative Advocates in Sacramento. The descriptions are not intended to cover every aspect of the legislation - only the highlights - so it is recommended that specific bill language be reviewed for complete details. For a copy of the legislation and a complete analysis, please access the State Legislature’s legislative website at www.leginfo.legislature. ca.gov. Type in the bill number, then click the “go” icon. Under "Session Year" click on "2017-2018,” then hit “search.” Please contact AGC’s Legislative Advocates, Felipe Fuentes, Paul Gladfelty, or Jamie Khan at (916) 444-3116, if additional information is needed. PUBLIC WORKS – SKILLED WORKFORCE / APPRENTICESHIP AB 3018 - Imposes new fines and penalties on the contractor or subcontractor that fails to use a required skilled & trained workforce. Also limits the public agency to withholding 150% of the monthly billing from a contractor/subcontractor who fails to meet compliance requirements. AB 235 - Authorizes a bilateral approval process for apprenticeship programs by maintaining the current existing process for construction, and establishes a separate program for emerging industries, such as IT, manufacturing, and others. PUBLIC WORKS - PROCUREMENT SB 1262 - Removes the cap on the number of Construction Manager/General Contractor (CM/ GC) projects administered by Caltrans. Requires Caltrans employees or consultants to perform project design and engineering services on at least two-thirds of the CM/GC projects. 10 AGCSD.ORG
SB 914 - Expands the authority of counties to use the Construction Manager At-Risk project delivery method on all infrastructure projects over $1 million, excluding roads. EMPLOYER / EMPLOYEES SB 1343 - Requires employers with five or more employees to provide at least two hours of sexual harassment training to all supervisory employees and at least one hour to all nonsupervisory employees by January 1, 2020, and every two years thereafter. SB 1300 - Lowers the standard for what constitutes severe or pervasive behavior for litigating sexual harassment claims. Prohibits employers from requiring employees to sign a release of claims under Fair Employment and Housing Act in exchange for a raise or as a condition of employment. AB 1976 - Requires an employer to make reasonable efforts to provide an employee with use of a room or other location, other than a bathroom, to accommodate an employee desiring to breast feed an infant child. LIABILITY AND CLAIMS AB 1654 - Exempts the construction industry from Private Attorney General Act (PAGA) claims for contractors operating under a collective bargaining agreement, if the agreement provides a grievance and binding arbitration procedure to redress violations that would have been remedied under PAGA. The bill sunsets in 2028.
AB 1565 - Building Industry Association “deal” to go neutral on last year’s AB 1701, which requires a general contractor on a private job to be responsible for all tier subcontractor payroll obligations, excluding penalties and liquidated damages. This bill requires general contractor to specify in contracts with subcontractors all of the documents needed if an actual claim or dispute should arise. Clarifies that penalties and liquidated damages are excluded. AB 3231 - Authorizes a joint labor-management committee to take legal action against a contractor or subcontractor who fails to provide payroll records to the awarding agency. SB 1465 - Requires contractors and insurers to report specified civil actions resulting in a final judgement, settlement or arbitration award of $1 million or greater to the Contractors State License Board. This bill was a result of the 2017 balcony collapse in Berkeley. CONTRACTOR LICENSING AB 2138 - Limits a regulatory board's discretion to deny a new license application to cases where the applicant was formally convicted of a substantially related crime or subjected to formal discipline by a licensing board, with offenses older than seven years no longer eligible for license denial. AB 2705 - Subjects an unlicensed person acting as a contractor to the existing criminal penalties that apply to licensed contractors for not securing the required workers’ compensation and makes this crime subject to the same two-year statute of limitations as for licensees. SB 1042 - Allows a person cited by the Contractors’ State License Board, and wishing to contest the citation, to file a written request for an administrative hearing within 15 days after the service of the citation. A written request to contest the citation can be submitted within 15 days after the service of the citation. LIMITED LIABILITY PARTNERSHIPS SB 920 - Extends to January 1, 2026, the law for engineering, land surveying or architecture firms to form registered limited liability partnerships and foreign limited liability partnerships, and provide security of no less than $2 million for claims arising out of the partnership’s professional practice.
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Has the California Supreme Court Sounded the Death Knell for Independent Contractors? By Chad T. Wishchuk, Esq. of Finch, Thornton & Baird, LLP
The California Supreme Court, in the recent case of Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal.5th 903, answered the question of whether a worker can properly be classified as an independent contractor, or instead, as an employee. The Stakes Could Not be Higher for Hiring Businesses The stakes are high because, if a worker can properly be classified only as an employee, the hiring business bears responsibility for all the following: • • •
Paying federal Social Security and payroll taxes, unemployment insurance taxes, and state employment taxes; Providing workers’ compensation insurance; and Complying with numerous state and federal statutes and regulations governing wages, hours, and working conditions.
The Dynamex case dealt with delivery drivers for a nationwide package and document delivery company. At issue were the California wage orders which impose obligations relating to minimum wages, overtime, and meal and rest breaks. The company considered its drivers independent contractors rather than employees.
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The California Supreme Court Adopts a New “ABC” Test Prior to Dynamex, the California Supreme Court’s seminal case on independent contractors versus employees was Borello, which established a multi-factor control standard. In Dynamex, the Court adopted an “ABC” test to distinguish employees from independent contractors. Under this “ABC” test, a worker is properly considered an independent contractor only if the hiring entity establishes ALL of the following: (A)
(B) (C)
The worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact; The worker performs work that is outside the usual course of the hiring entity’s business; The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.
All three parts of the “ABC” test must be established to permit an independent contractor classification. The Court clarified that an independently established business under Part C generally must take the following steps: (1) incorporation, (2) licensure, (3) advertisements, and (4) offering to provide services to the public.
Examples Offered by the Court Here are examples the Dynamex Court provided of proper independent contractor classifications: • •
When a retail store hires an outside plumber to repair a leak in a bathroom; When a retail store hires an electrician to install a new electrical line.
Here are examples the Dynamex Court provided of improper independent contractor classifications: •
•
When a clothing manufacturer hires work-athome seamstresses to make dresses from cloth and patterns supplied by the company that will later be sold by the company; When a bakery hires cake decorators to work on a regular basis on its custom-designed cakes.
An underlying concern for the Court in creating this “ABC” test was the worry about the unfair competitive advantage and the incentives that businesses have in mischaracterizing workers as independent contractors. This decision is believed to greatly restrict the ability of hiring entities to classify workers as independent contractors. An internal audit of any worker performing work for you as an independent contractor is now in order. If you have questions, please contact Chad T. Wishchuk, Esq. of Finch, Thornton & Baird, LLP at (858) 737-3100. Read the entirety of the decision at: http://www. courts.ca.gov/opinions/archive/ S222732.PDF
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EDUCATION 2019 Project Management Scholarships Announced By Becca Schaffer, AGC San Diego Education & Safety Marketing Manager
The AGC San Diego Education & Training Committee and Education Department are pleased to announce the WINNERS of the 2019-2020 AGC San Diego Construction Project Management Scholarships! Each year the AGC San Diego awards five full-ride scholarships into our 26-week Construction Project Management Program. One scholarship is to be designated to military personnel, (active, discharged, retired), one scholarship is designated to a graduate of the San Diego State University JR Filanc Construction Management Degree Program, and three scholarships are awarded to any individual candidate employed by an AGC San Diego member company, that is in good standing, looking to advance their career and demonstrating the desire to provide your current employer added value. CONGRATULATIONS TO: Chris C. Catania, Civil Affairs Specialist with United States Army - 416th Civil Affairs BDE (Airborne) Giovanni Petricca, Estimator/ Project Engineer with Kyne Construction Inc. (SDSU Graduate) Mark Hammet, Project Engineer with Neal Electric Eric Kelley, Project Engineer with Orion Construction Christina Radson, Estimator/ Project Manager with General Coatings Corporation The 2018 scholarship winners will be graduating and receiving their certificates at the Installation Dinner on January 21, 2019: • • • • •
Tori Davis, Able Heating & Air Conditioning Brian Enriquez, E.L. Hobbs Inc Daniel Moreno T.B. Penicks and Sons Inc. Larry Valdez, Soltek Pacific Annie Wright, Hazard Construction Co.
Information regarding on how to apply for scholarships please contact agcsdeducation@agcsd.org 14 AGCSD.ORG
AGCSD.ORG 15
SAFETY OSHA Top 10 Violations for 2018 By Vince Hundley, SMART Safety - AGC San Diego Safety Director
The Occupational Safety and Health Administration (OSHA) recently revealed its preliminary 2018 Top 10 Most Cited Safety Violations in the workplace. In general, the number of workplace safety violations has increased overall. The #10 on this year’s list, Eye & Face Protection, is new to the Top 10 and was not on the 2017 list. There was an estimated total of 32,266 violations in these 10 categories in fiscal year 2018. That is a 12.1% increase in violations versus 2017.
TOP 10 VIOLATION
REGULATION CODE
#1 Fall Protection (General Req) #2 Hazard Communication #3 Scaffolding #4 Respiratory Protection
1926.501 1910.1200 1926.451 1910.134
7,720 4,552 3,336 3,118
19.73% 9.0% 1.46% <1.0%
#5 Lockout/Tagout
1910.147
2,944
2.33%
#6 Ladders #7 Power Industrial Trucks
1926.1053 1910.178
2,812 2,294
25.48% 6.11%
#8 Fall Protection (Training Req)
1926.503
1,972
2.02%
#9 Machine Guarding #10 Eye & Face Protection
1910.212 1926.102
1,982 1,536
30.14% -
-
32,266
-
TOTAL
# OF CASES INCREASE VS 2017
Not only have the number of violations increased over the years, but so have the fines for these violations. OSHA increased its fines on August 1, 2016, by a whopping 78%. A serious OSHA violation now costs $12,934 and a Willful or Repeat Violation $129,336 – a cost that can easily be avoided. Type of Violation Serious or other-than-serious posting requirements Failure to abate beyond initial violation date (per day) Willful or repeat violations
2015 $7,000
2016 $12,471
2017 $12,675
2018 $12,934
2019 Increase?
$7,000
$12,471
$12,675
$12,934
Increase?
$70,000
$124,709
$126,749
$129,336
Increase?
The OSHA Top 10 Violations list is an excellent guide for employers to determine which incidents occur most frequently in their operations and focus their workforce training in these specific areas. 16 AGCSD.ORG
KNOWLEDGE IS POWER, BUT ONLY WHEN YOU APPLY IT...
TRAINING IS THE KEY TO COMPLIANCE By Becca Schaffer, AGC San Diego Education & Safety Marketing Manager
Fall Protection is once again the most frequently cited OSHA violation and we do not see much change to the Top 10 list year to year. NAVFAC SW has contracted the AGC San Diego to provide a 40-hour Fall Protection Competent Person Training program for all their facilities personnel, a program the AGCSD started in 2017. Do not take the chance of an employee getting hurt. We encourage our AGC Chapter members to use this list and look at your own workplaces to make sure listed hazards are addressed. The 24-hour Fall Protection Competent Person Training for EM 385-1-1 class at the AGC San Diego Chapter starts February 19 and provides information about the types of falls and key ways to eliminate falls related to surfaces, ladders, stairs, ramps, and elevated work areas in accordance with EM 3851-1 dated November 30, 2014, and applicable ANSI regulations. The training also covers rescue and retrieval procedures, inspection of fall protection equipment and much more! There are over 10 hours of hands-on training using the Fall Protection Simulators. The Fall Protection Program is led by Melissa Bewley, Ric Wade and Patrick Wiedenfeld. Remember employees have to be trained, as necessary, by a competent person. With Respiratory Protection coming in at #4 on OSHAâ&#x20AC;&#x2122;s Top 10 List of violations, the Education Department has also added a Respiratory Protection Training and Fit Testing starting March 20, 2019. This course will be led by Leslie Eastman. Leslie brings 25 years as an occupational safety and health specialist and is an Environmental Health and Safety Manager. The AGC Education & Safety Training Catalog for January â&#x20AC;&#x201C; June 2019 is now LIVE on our website at www.agcsd.org/education, or you can call the Education Department and ask that a hard copy be mailed to you.
Education & Safety 2019 Training Catalog NOW January-June
LIVE! VISIT
www.agcsd.org/education OR CALL 858-731-8155 FOR A HARD COPY
AGCSD.ORG 17
ENGINEERING Proposition 6 Defeated…Now What? By Mike McManus, Director of Engineering Construction & Industry Relations
Agency Support Costs In order to develop infrastructure projects, agencies must have a professional staff, including consultants to manage and deliver these construction programs. That costs money of course, but it is also important to contain those costs, because every dollar spent on support is a dollar not spent on tangible improvements to the infrastructure. We suggest the Inspector General benchmark these support costs with other state transportation agencies.
Now that we have defeated Proposition 6, saved revenues from Senate Bill 1 (SB 1), and secured billions of transportation dollars for needed infrastructure projects and tens of thousands of construction jobs, what’s next? The construction industry helped defeat Proposition 6, but there were some reservations about the status quo with Caltrans. Now that the election is over, we can get down to business and deal with some of these issues. The time is now to reset the partnering relationship with Caltrans on a strategic level, and AGC will be a leader in advancing the issues important to our member firms. One such opportunity is one of the provisions of SB 1, which created the Independent Office of Audits and Investigations, led by Inspector General Eraina Ortega. Ms. Ortega was appointed by Governor Brown in early 2018 for a six-year term. In August, AGC leaders had an initial meeting with William Lewis, Assistant Director of Office of Audits and Investigations, to discuss a number of issues, and Inspector General Ortega has agreed to meet again in the coming months. Here are some of the issues and suggestions we will be discussing:
18 AGCSD.ORG
As 50% of the new SB 1 funds are going to local agencies, we also suggest that their support costs be reviewed. Standards should be developed to insure the best use of these funds. The Federal DBE Program A significant amount of the $4.9 billion in Caltrans construction projects budgeted for the 2018-2019 Fiscal Year are projects with some federal dollars that are therefore subject to the FHWA’s DBE program. We suggest a review and audit of this program from a cost effectiveness perspective, as well as from an expected outcomes point of view. Here are some questions that need to be answered: • • •
What is the program trying to achieve? Are the outcomes consistent with expectations? Are the additional costs, which are being incurred by taxpayers, justified?
Sustainable Design Policies It has been long recognized by public works agency personnel and construction industry experts that past design practices are not sustainable. Natural resources, such as virgin construction aggregates, are in short supply in many regions and are being trucked in from distant places in growing quantities.
This has environmental consequences, as well as impacts to our roads. Additionally, demolition from projects, such as old asphalt or concrete pavements, is filling up landfills around the state. We suggest a look at whether or not Caltrans and local agencies are in compliance with state law. For example, Caltrans’ own documents show that the life cycles for rubber asphalt and conventional mixes are the same. However, rubber asphalt mixes are much more expensive per mile. The law prescribes that the most cost-effective approach must be used. Another related matter to review is the Caltrans practice of removing miles and miles of concrete pavement with no provisions in the contracts to recycle the material into new road construction as re-purposed construction aggregates that would offset the use of virgin aggregates. Presently the material ends up in a supplier’s yard or in a landfill.
Here is an important point that sometimes gets lost in the discussions about recycling and developing specifications at agencies to create a market for recycled materials: “Industry will make the product, if there is a place to sell it.” Public agencies must create the place to sell it by developing and implementing new specifications. Throwing Out Low Bids Caltrans has repeatedly thrown out low bids, as non-responsive, for various reasons which it has the legal right to do. There have been cases of bids being tossed for minor mathematical or clerical errors and for not meeting DBE goals. This practice should be reviewed to ensure future consistent practices in the awarding of these important Caltrans projects. We have heard your concerns and will share them with Inspector General Ortega and officials from the Newsom administration. Our hope is to develop new relationships and renew a partnering relationship with Caltrans.
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BUILD & SERVE Make-A-Wish® San Diego Honors AGC Build & Serve Charitable Alliance By Marcy Knopman, Build & Serve Committee Staff Liaison
Each year, Make-A-Wish® San Diego hosts a Donor Appreciation Night to say thank you to its donors, and to celebrate some of its most influential partnerships with awards that speak to the large impact a few organizations make on their foundation. On November 8, 2018 at Hotel Del Coronado, the AGC Build and Serve Charitable Alliance was selected to receive the Wish Impact Award, and representing the committee to accept the award were Co-Chairs Julia Hope, Erickson-Hall Construction Co. and Ben Swanson, Hensel Phelps. "So many wishes were made possible by the contribution and dedication of your team and we are so grateful to have you as partners!!" Jenna Martin, Wish Manager "We are grateful for all you do to make so many wishes possible and we consider each of you to be a very important part of our Make-A-Wish family. Here's to the next wish!" Suzanne Husby, Vice President, Mission Delivery Congratulations to the AGC Build & Serve Charitable Alliance members for their dedication and hard work in granting constructionrelated wishes which included: • • • • • • • • •
Backyard Makeovers Bedroom Makeovers Swim Spa Therapy Stairs Pirate-themed Backyard Foam Pit Skate Park Basketball Court Bike Track
If your company is interested in getting involved in AGC's Make-A-Wish projects, please contact Marcy Knopman, Staff Liaison for the Build & Serve Charitable Alliance, by email at mknopman@agcsd.org 20 AGCSD.ORG
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October 8, 2018
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APPRENTICESHIP NEWS Skilled & Trained Workforce – Does It Apply To You? By Pete Saucedo, Executive Director - AGC Apprenticeship
The short answer is...YES. “Skilled and trained workforce” is a phrase that has been around for several years now, and if you haven’t heard, it’s coming to a theater near you! This short article is not a comprehensive discussion or explanation, but it will provide a summary of recent legislation and the strategy to address these requirements. Skilled & Trained Workforce Summary Starting in 2013 and through 2018, Governor Brown has signed several bills regarding skilled workforce. Those bills were consolidated into one bill in 2016 with SB 693, modified or capped last year in SB 418, and penalties and DLSE enforcement were put in place this year through AB 3018.
equal to a graduate (guys that have been with you for years, but never went through an apprenticeship program). The fourth column are journeymen workers who have absolutely no experience – they will not be allowed to work on these types of projects. Their only entry into the workforce will be through an approved apprenticeship program.
Currently, these requirements primarily apply to design-build, lease-leaseback, best value, SANDAG projects over $1 million, and other local agency projects. In essence, it requires contractors to utilize a journeyman workforce with a certain percentage that have graduated from an approved apprenticeship program.
As listed in SB 418, the following trades will be capped at a 30% threshold for graduates: acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, terrazzo worker or finisher, and tile layer, setter, or finisher. The trade of teamster is completely exempted from skilled workforce requirements.
Failure to comply with these graduation requirements will subject a contractor performing work on these types of projects to stiff fines, having their progress payments withheld, or possibly subject them to debarment. Here are some of the requirements in a little more detail. The chart below illustrates the skilled workforce requirements going forward: Date
Grads
Equiv. Hrs.
Unskilled
Total
1/1/19
50%
50%
0%
100%
1/1/20
60%
40%
0%
100%
The second column is the required percentage of journeymen graduates. The third column is the amount of journeymen who are not graduates, but have an equivalent amount of hours in that trade 26 AGCSD.ORG
For all other trades, the percentages in the graph will apply (50-60%). For the trade of Laborer, up to one-half of the graduation percentage requirements listed above may be satisfied by skilled journeypersons who commenced working in the Laborer occupation before 1999 (Section (d)(3) of SB 418). The law is silent on what type of evidence the contractor would need to prove that an individual worker has 19 or more years of experience in this trade. The only thing worse than training your employees and having them leave is not training them and having them stay. —Henry Ford, Founder of Ford Automobiles
Train people well enough so they can leave. Treat them well enough so they don’t want to. —Sir Richard Branson, Founder of Virgin Group
Is Skilled Workforce Spreading or Going Away? Skilled workforce started with a bill aimed at the oil refinery industry. Then it spread to designbuild, lease-leaseback, and so on. SANDAG has adopted it on all their projects over $1 million, and the city of San Diego will implement skilled and trained workforce on its upcoming Pure Water projects. It is already spreading, and rapidly. A certain sector of the industry really likes skilled and trained workforce requirements, and they have had no problems pushing these requirements through the legislature and the governor. Here are excerpts of a bulletin on skilled and trained workforce from the State Building and Construction Trades Council (SBCTC): “Anti-union construction interests in California are continuing their desperate-sounding pleas to try to stop bills sponsored by the SBCTC that would have the effect of increasing school districts’ use of a skilled and trained workforce that has graduated from stateapproved apprenticeship programs, on school construction projects, delivering a highly trained, streamlined work force, and ensuring quality of school construction under the lowest bid. They obviously fear that these sensible goals would disrupt their hopes to win construction contracts with lesser trained, lower wage workers...These provisions will likely be included in all public works projects and even into privately funded projects that include some public funding.” While it’s difficult to accurately predict the future, it’s reasonable to assume that under Governor Newsom, these requirements will continue to spread - perhaps to all public works at some point in the near future.
The long-term solution to skilled workforce requirements is to embrace apprenticeship, train workers your company’s way, have them receive a formal construction education, and graduate workers from our program. Not only will you have built your graduate workforce for compliance purposes, you will have also engaged and invested in your field staff, which has proven benefits. It's time for construction companies to recognize their people are their most valuable asset to secure success in the future. And if your people are your most valuable asset, it makes sense to invest in them through formal training. Just imagine what your company could accomplish with everyone moving in the same direction. Employees who feel valued will gladly compete in the race, overtake the competition, and cross the finish line first. While training has been proven to benefit contractors in educating their future workforce, reducing their labor costs, and helping them remain in compliance with labor laws, many contractors stubbornly refuse to train and are not afforded the obvious benefits their competitors enjoy. We have come across several contractors who feel that skilled and trained workforce does not apply to them because they don’t perform those types of projects, or they will adjust when the time requires. Our position is this type of thinking is extremely short-sighted. We encourage AGC members to get ahead of the curve. The writing is already on the wall. As stated in this article, it is time to embrace apprenticeship training. Twenty years ago, safety did not have the emphasis and focus that it does today. Apprenticeship training is experiencing a similar transformation. Contact us today for more information at (858) 558-0739 or www.agcsdatt.org. You will like the product!
The AGC Can Help You The only strategy to address skilled and trained workforce is traditional apprenticeship training! If your company intends to continue bidding and performing all types of projects, you will need a percentage of graduates that corresponds with the law. Apprenticeship training today is as relevant as ever!
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MCRD Sponsors:
e g n e l l a h c p m a Bootc
October 13, 2018
Cavignac & Associates, Erickson-Hall Construction Co., Lusardi Construction Company, Sierra Pacific West, Inc., SMART Safety Group, Stronghold Engineering, Inc., On-Site Health & Safety
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TECHNOLOGY A/E/C Technology Conference Helps Support San Diego State Construction Management Program By Kellie Korhonen, Digital Communications and Technology Manager
Industry professionals gathered in September to learn about accelerating project collaboration using technology. The event raised over $12,000 for the San Diego State Construction Management Program and to support teams competing in the annual Associated Schools of Construction â&#x20AC;&#x153;Reno Competition." The A/E/C Technology Conference was hosted by AGC San Diego, AIA San Diego, and CMAA San Diego on September 20. Title Sponsor NoteVault welcomed the attendees and CEO/Founder Peter Lasensky spoke on using technology to enhance field and office collaboration. The conference included panel discussions, a case study about the San Diego Central Courthouse project, breakout sessions, a lunch speaker from sponsor Datanet Solutions, and presentations from Gigabyte sponsors Kelar Pacific and Gafcon, Inc. Attendees were able to meet with vendors, including BuildingPoint Pacific, eSUB, Lydon Solutions, Multivista, MyWorkDrive, PlanGrid, Procore, TAG, Towill, Inc., Rhumbix, U.S. CAD, and Virtual Design & Construction Institute to discuss their services and technologies.
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