The Omega Report (Volume 2, Issue 3)

WWW.OMEGACONSTRUCTION.COM

THE

OMEGA REPORT managing

risks

The first half of 2021 is now behind us, as we look forward to an extremely busy second half of the year. Our growth is expected to continue in the second half, as we are on track to exceed our 2019 record revenue. We are busy putting more business in place, knowing our past success has come largely from successfully managing the project risk factors we face. The construction industry is risky by nature, and we’re always trying to best manage the risk for the benefit of Omega, our customers, and our projects.

THIS PUBLICATION Find the latest key messages from our leadership, our portfolio of projects, and Omega employees’ personal life updates!

the omega report

|

volume two, issue three

|

2021

1

WWW.OMEGACONSTRUCTION.COM

A MESSAGE FROM LEADERSHIP MANAGING RISKS

BARRY HENNINGS President

As we wrap up the first half of 2021, our markets continue to be solid and we will enter the second half of the year with a strong backlog of work under contract. We continue to be truly blessed with great customers and great employees to make this happen. As we will be busy in the coming months putting work in place, we must continue to be diligent in assessing and mitigating the risks we face on projects and not become complacent when business is good. With this in mind, I wanted to take a look at a few of the project risks we face with some reminders on risk management.

Construction is a risky business by its very nature. Risks on our construction projects come in many forms: contract language, construction document quality, owner relations, subcontractors, weather, governmental regulations, worker errors, safety/accidents, architect/engineer relations, schedule, unforeseen site conditions, theft/vandalism, and material delays. As we identify project risks, part of our risk management strategy should be to address the risk in one of four ways: 1) Avoid the risk – steer clear of the project, or change the scope so the risk is eliminated or remains with the owner 2) Transfer the risk – use insurance or bonds to address the risk or pass the risk downstream to subcontractors or suppliers (who may be better suited to accept the risk) 3) Mitigate the risk – develop plans or strategies for minimizing the risk, or 4) Accept and manage the risk – we accept many risks on our construction projects.

Once a risk is accepted, we must manage it to ensure the risk does not create safety, schedule, quality, financial or relationship issues.

Some of the risk factors I wanted to point out this month are common risk factors on

2

projects but they are increasing in prevalence, due to current market conditions, and can be overlooked as we are busy dealing with increased workloads. Common risk factors include: • Aggressive schedule compression - In today’s market, compressing schedules can be extremely challenging. With subcontractors stretched thin and material delivery issues, keeping on schedule can be hard enough, let alone having to perform on a compressed schedule.

• Material deliveries - It is definitely not business as usual in today’s market. We must be on top of every material needed for our projects weeks in advance to make sure there is not a supply chain interruption that will delay our projects. Stretched out schedules can create owner relation issues and can lead to additional costs associated with extended general conditions. If we run into a supply chain interruption that could impact one of our projects, it is important that we communicate that fact to the owner promptly and properly.

Effective and timely communication is the key to building and maintaining strong customer relationships.

• Ambiguous scope definition - I feel we do a better job than most of our competitors in providing a clear, well defined scope of work for our contracts and subcontracts. As we get busier, let’s not short this important step but continue to be diligent and thorough in scope writing.

• Excessively complex contract documents or exculpatory contract language - If an owner (or their attorney) feels the need to make substantial modifications to the standard AIA or ConsensusDocs contracts, rest assured they are not making the changes in favor of the contractor.

WWW.OMEGACONSTRUCTION.COM

We have turned down opportunities to bid projects based on substantial changes to the standard contract documents. Should the owner desire contract language that is so one-sided, it is usually indicative of an owner who is not looking to share the risk of construction and should be avoided or handled with extreme caution. As owner’s continue to look for ways to avoid or pass along the risk on their projects, we must make sure to review and approve the contract language prior to making a commitment. A big thank you to Greg Marshall for his thorough work on contract reviews to protect the company. Make sure to consult him anytime you have modified contract or subcontract language.

• Vague or unclear “For Construction” documents - We have all dealt with incomplete plans in our careers. This can be one of the most challenging risk items, as it leads to potential disputes, change orders, and ultimately owner relation issues. Let’s continue to be diligent in the pre-construction phase and identify plan issues before they become major issues in the field.

• Subcontractor issues - Many of our subcontractors are stretched to the point they are not able to adequately staff their projects. We must communicate with our subcontractors early and often to assure they will be there when we need them and can plan their schedules to match ours.

Also, make certain you are ready for them when they arrive so they can be as efficient as possible in executing their work. We must always be on the lookout for subcontractor defaults and remember that defaults can happen, even in good markets. If you have any concern that a subcontractor default is imminent (even if it has to do with the sub getting paid on a project with another GC) communicate that concern up the line to management, so the risk can be assessed and any necessary actions taken to mitigate it.

• Punchlist completion - We must remember the lasting impression of how a project is completed. With the excitement of starting new projects, punchlists are sometimes short changed and not diligently pursued to completion. We must take the time to successfully complete the punchlist (assigning dedicated resources, if needed) as this leads to satisfied customers and keeps them coming back with repeat business.

As we get busier, it is easy to become complacent and overlook the day-to-day risks of our business. We must remain diligent in our risk management as this has been a major factor in our success. How we successfully navigate the risks on our construction projects, especially in light of today’s market environment, directly correlates to how successful we will be with our projects and our clients.

Barry Hennings, President

3

WWW.OMEGACONSTRUCTION.COM

HUMAN RESOURCES HR Update It’s officially summertime and many are taking and planning vacations. We encourage all employees to utilize their vacation time. Vacations release us all from our daily schedules and help us unwind. Apart from the relaxation of our bodies and minds, vacations play a very important role in improving our daily lives as well. It gives us the space to spend time with ourselves or our loved ones and discover a healthier self. Please take care of yourselves and enjoy some time away. As a reminder, our Employee Benevolence Fund needs more donations. Employees can donate on a one time or recurring basis by submitting a request on the Intranet or by emailing Patrick Casstevens or Lisa Singleton. Also, we are constantly looking for great people to add to our Omega family. Current employees can receive a bonus for referring candidates to Omega. Please review the Employee Referral Program on the Intranet for additional details. Thank you all for the work each of you do every day! “Each person deserves a day away, in which no problems are confronted, no solutions searched for. Each of us needs to withdraw from the cares which will not withdraw from us.” ― Maya Angelou

best places to work 2021

WELCOME TO THE TEAM WE ARE PROUD TO WELCOME THE FOLLOWING TEAM MEMBERS TO THE OMEGA FAMILY:

trevor jeans

Project Engineer, Industrial

colton Simpson Field Engineer

David howell

Field Engineer

2021

william haas

Project Manager, Industrial

3rd place in the triad!

Omega Construction

Thank you, Triad Business Journal! We are honored to be a winner for the sixth year in a row. We look forward to many more.

omega TRUST academy Our TRUST Academy is continuing to work through the construction divisions set out under the Master Format by CSI (Construction Specifications Institute). Our last module was covered on March 12, 2021. Eric Misenheimer from Chandler Concrete discussed Concrete Material Technology and Practices. Participants learned about concrete ingredients, material properties, mixtures, production, environmental conditions, and more. Our next scheduled module is set for July 30, 2021 and we will continue with the concrete division. Thank you for your continued support!

“Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young.”

– Henry Ford

4

WWW.OMEGACONSTRUCTION.COM

HUMAN RESOURCES

The New Omega “Mascot” Jason Nearen’s german shepherd, Jackson, joined the team at The Villas project to boost morale, after a long Memorial Day weekend!

EMPLOYEE SPOTLIGHTs Why did you join Omega?

I have been a traveling superintendent since 2008. Working for Omega allows me to spend more time with my wife in our condo on the beach, in Harbor Island, SC.

What do you love most about Omega? I love their Christian values.

How do you define success? “Well done, my good and faithful servant.”

Who inspires you? The apostle Paul.

If you could choose any mentor, who would it be? I would have liked to walk the shores of Galilee with Christ.

Clint Tucker

Senior Superintendent

What’s something about you (a fun fact) that not many people know?

I wrote songs, played lead guitar and sang in the Christian rock band Narrowway. Two albums “Are You Listening” and “The Day I Found You” are available on Apple itunes.

Why did you join Omega? Omega came highly recommended to me back

in 2019 as I was looking to transition and move back to North Carolina. During the interview process, I became very impressed with the quality of work the company produced, and impressed by the quality, knowledge, and professionalism of those I also interviewed with. It became very clear then, and remains clear today, that it was the right choice to make.

What do you love most about Omega? The relationships that I’ve been able to build, as well as the knowledge that I’ve gained through those relationships.

Who inspires you? My Dad. He has always been a great example of hard work and dedication, no matter what challenges he had to face.

What is a fun fact about you that not many know? I really enjoy the great outdoors – backpacking, especially.

Marco Godinez Project Manager

5

WWW.OMEGACONSTRUCTION.COM

RECENT HAPPENINGS

At Omega, we not only build trust on the jobsite, but in our lives outside of work, and in our communities, too! Check out some recent employee news.

omega Spreads awareness for als and raises over $7,000 for als research Amyotrophic Lateral Sclerosis (ALS) or Lou Gehrig’s disease is a lethal condition where the person suffering quickly loses all control over their muscles and body.

There is no known cause and no known cure. These alarming facts spotlight the importance of continued research in this area. Douglas Marshall, Greg and Eric’s father, passed away after a year long battle with ALS in 2007. Omega walked as a company after a BBQ meal, on June 25th, in line with the NC ALS foundation who held their annual walk on June 26th. We helped raise over $7,000 from business sponsorship and some employee contributions. We are happy to honor the Marshall family and give back... plus, Omega raised the most money in this region in June!

We were treated to an outdoor lunch by Dudley’s Dugout Food Truck on June 4th in our Winston Salem office parking lot. We enjoyed ballgame-themed food (burgers, hot dogs, onion rings, cheese sticks, and more) and great conversation with our friends and co-workers.

6

JUNE 25TH

WWW.OMEGACONSTRUCTION.COM

welcome, summer interns of 2021 Omega’s Internship Program kicked off on May 17, 2021. Our internships offer students a hands-on opportunity to work in the construction industry. Interns learn how their courses of study apply to the real world and accrue the invaluable experiences that make them stronger candidates for jobs after graduation.

Universities represented: UNC-Charlotte Appalachian State NC A&T Western Carolina Georgia Southern

WELCOME: Zach Raiza Matthew Chandler Austin Lane Justin Jonathan Blake

7

WWW.OMEGACONSTRUCTION.COM

DIVISIONAL UPDATE

At Omega, we have four divisions: Triad, Retail, Industrial, and Georgia. Vice Presidents oversee divisional projects, team members, and marketing initiatives. Omega sincerely thanks each Vice President for the significant contributions they make daily. We are proud of the leadership in place and highlight recent divisional achievements. Let’s hear from Kirk Matthews, VP of the Industrial Division.

KIRK MATTHEWS industrial division

It is crazy to think how fast the first half of the year went by. The time we have all spent dealing with pricing volatility and material shortages have made the first six months of 2021 feel like a blur. The industrial team has done a great job meeting these challenges by focusing on fundamentals, adapting to a myriad of varying market conditions, and communicating any opportunities that arise within the project team.

The Industrial Division team has been busy with project execution, turning over two more buildings at the Georgia International Trade Center and a project for Ashley Furniture in Advance, NC. We have also been successful with acquiring new business, adding $100M 8

of work to backlog so far this year! With the commendable reputation that all employees at Omega are helping build, it seems the opportunities are only going to increase.

At Omega, our greatest asset truly is our people. We have a great team in the office, and in the field, which collectively contributes to the success of our company. We are excited about expanding our industrial team with the addition of Will Hass and Trevor Jeans on our project management staff. We are also pleased to extend congratulations to Marco Godinez on his well-deserved promotion to project manager.

Kirk Matthews, VP of Industrial Division

WWW.OMEGACONSTRUCTION.COM

ALWAYS PUTTING SAFETY FIRST Scaffolding Safety When working, many Omega field men access scaffolding platforms to gain leverage against surfaces above ground. Injuries can easily occur, and falls can result in fractures or death, so safe practices are always encouraged at each jobsite.

Safe Practices: •

Construct scaffolds according to the manufacturer’s instructions.

•

Use screw jacks, base plates and mudsills to ensure adequate support.

•

Install a guardrail system or fall arrest system for scaffolds more than 10 feet above a lower level.

•

Ensure that guardrails are installed on all open sides and the ends of platforms.

•

Provide safe access to scaffold platform.

•

Prohibit employees from climbing the cross bracing as a means of access.

•

Prohibit the use of unstable objects to support scaffolds.

•

Front-end loaders, forklifts and similar equipment are not to be used for support unless designed for use.

•

Ensure that platforms do not deflect more than 1 ⁄60 of span when loaded.

•

Prohibit moving a scaffold while employees are on the scaffold.

•

Prohibit working from scaffold during storms or high winds unless the competent person approves work and wind screens or fall arrest systems are used. A windscreen may only be used when the scaffold is secured against anticipated wind forces.

•

Ensure that scaffolds are inspected before each shift by a competent person who is capable of identifying scaffold hazards and who has the authority to correct the hazards.

•

Ensure employees working on scaffolds are trained by a person qualified to recognize hazards associated with the type of scaffold and to understand the procedures to control or minimize hazards.

•

Employees erecting, dismantling, moving or inspecting the scaffolds must be trained by a competent person to recognize any hazards.

•

Retrain employees who demonsrate a lack or skill or understanding

HOT WEATHER REMINDER

“

HOW YOU HYDRATE ON THE JOBSITE MATTERS...

Avoid designer beverages (Red Bull etc.) because they offer minimal hydration. And avoid carbonated sodas and sugary concoctions. Iced tea is on the borderline, and anything with caffeine is a diuretic and should be avoided. Lemonade, and most citrus beverages are fine, but it’s a good idea to cut them with 50% water. Try also to cut down on cigarettes. In high heat, they make it harder to respirate oxygen to where it needs to go.

9

WWW.OMEGACONSTRUCTION.COM

PROJECT SPOTLIGHTS

ASHLEY FURNITURE INDUSTRIES ADVANCE, NC EXPANSION

Grading and construction for the new 613,088 square foot warehouse and office addition to the existing Ashley Furniture Distribution Center is almost complete in Advance, NC. The project is currently under construction and consists of delivering a 613,088 square foot distribution center expansion to the existing facility. The building construction is load-bearing precast concrete wall panels with conventional steel-framing. A small, two-story office space is also included in the northeast corner of the structure.

Project Team: Kevin Hennings, Project Executive; Barrett Hennings, Asst. Project Manager; Will Robertson, Superintendent; Roger Neugent, Superintendent

10

WWW.OMEGACONSTRUCTION.COM

PROJECT SPOTLIGHTS

PUBLIX #1633 JOHNSON CITY, TN

REDEVELOPMENT

Publix store 1633 and retail shops at Markets West is a partial redevelopment of an existing active shopping center, located in Johnson City, Tennessee.

Publix store 1633 is the first Publix Supermarket to be built in the Tri-Cities area in eastern Tennessee. Markets West Shopping Center was comprised of a 47,567 square foot Publix Supermarket, based on Publix’s 45.9.2 Prototype, 5,929 square foot of inlineretail, including façade renovations to an existing building, 5,911 square foot of freestanding vanilla-box retail shops, and an interior up-fit for Farm Bureau. In addition to the vertical construction components, the redevelopment included new site utilities, new asphalt paving, and updated landscaping & irrigation. Exterior building cladding includes a mixture of brick veneer, polished CMU, Stucco, and prefinished aluminum canopies.

Project Team: Dustin Hunter, Project Manager; Kendall Kruse, Asst. Project Manager; Ron Huddleston, Superintendent; Herb Fernandez, Superintendent

11

WWW.OMEGACONSTRUCTION.COM

PROJECT SPOTLIGHTS

THE THEATRE ALLIANCE WINSTON-SALEM, NC The Theatre Alliance project is a renovation of an old pre-existing, two-story taxicab garage in downtown Winston-Salem. It’s a unique space for a unique crowd.

The 15,901 square foot space boasts 3,805 square foot of new theatre space, 3,556 square footage for scene storage, and 8,540 square foot of second floor space for props and attire. The theatre has created an amazing atmosphere for productions and used creativity to salvage existing structures and finishes, while also incorporating modern updates the public will thoroughly enjoy!

Project Team: Matt Pardue, Project Manager; Scott Craver, Assistant Project Manager; Chris Crigger, Superintendent

2021 q2 completed projects A job well done to the Omega staff who worked diligently to complete the following projects in the second quarter of 2021.

ADVANCED AUTO PARTS

PUBLIX REMODEL #1148

THEATRE ALLIANCE RENOVATIONS

PUBLIX #1633 & RETAIL

SOUTHPORT, NORTH CAROLINA Matt Pardue, Project Manager Chase Brewster, Assistant Superintendent WINSTON-SALEM, NORTH CAROLINA Matt Pardue Project Manager Chris Crigger, Superintendent

NAPA AUTO PARTS

ALBEMARLE, NORTH CAROLINA Lewis Furr, Project Manager Tim Hagwood, Asst. Superintendent

TOMMY’S EXPRESS CAR WASH FAYETTEVILLE, NORTH CAROLINA Matthew Cave, Project Manager Kendall Kruse, Project Engineer Larry McMorrow, Superintendent

12

GREENVILLE, SOUTH CAROLINA Tyler Cook, Project Manager Paul Basset, Superintendent Chandler Whitaker, Field Engineer JOHNSON CITY, TENNESSEE Dustin Hunter, Project Manager Ron Huddleston, Superintendent Herb Fernandez, Superintendent

ASHLEY FURNIURE INDUSTRIES EXPANSION ADVANCE, NC Kevin Hennings, Project Manager Barret Hennings, Asst. Project Manager Roger Neugent, Senior Superintendent Will Robertson, Superintendent

WWW.OMEGACONSTRUCTION.COM

EMPLOYEE UPDATES

Kelly Gubenko and her husband, Alex, recently took a trip to Colorado to celebrate their son, Andrei’s, high school graduation. Andrei will be attending Georgia Southern University!

Brock Hennings and his family watched the Boston Red Sox take on the Atlanta Braves in Atlanta, Georgia.

Jim Marshall’s family vacationed at the beach in June!

Todd Mayo and his son celebrate winning runner up in their 8U baseball team’s Southeastern World Series event!

LIFE IS AN IMPRESSIVE BALANCE

We work hard at Omega to accomplish our tasks, and we strive to enjoy home life as much as we enjoy life within Omega.

“

Omega truly has a family atmosphere; they’re going to support you and support your family... it’s really somewhere to build a career; it’s not a job. You come to Omega for a career.

” 13

WWW.OMEGACONSTRUCTION.COM

EMPLOYEE UPDATES

Trevor Jeans married wife, Megan, on May 22nd, just before he started work at Omega Construction on June 1st! Congrats!

Amber Luffman and family took a trip to Kentucky in June, spending seven hours at their favorite tourist activity yet: The Ark Encounter!

Amber Luffman and family visited the Kentucky Horse Park, meeting champion race horses and enjoying the whole park for an afternoon, ending time there with a horse ride!

Matt Pardue’s family visited the North Carolina Zoological Park for the first time in April. The NC Zoo is the world’s largest natural habitat zoo with over 2,600 wooded acres!

Jeff White’s family also visited The Ark Encounter tourist attraction in Kentucky with his wife, Rhonda, daughter, Kaitlyn, and both of Jeff and Rhonda’s mothers.

14

WWW.OMEGACONSTRUCTION.COM

EMPLOYEE UPDATES

Kaitlin Cave graduated Cum Laude with a Bachelor of Science Degree in Management from Appalachian State University, and will be working at Inmar Intelligence as an associate!

Laney Cave also graduated Summa Cum Laude from Surry Central High School, receiving a full scholarship and direct admittance to FTCC’s Associate Degree of Nursing program!

Amber Luffman’s daughter, Ava, recently graduated pre-K from A Child’s World in Thomasville, and will start her private education in August, at Salem Baptist Christian School!

15

WWW.OMEGACONSTRUCTION.COM

EMPLOYEE UPDATES

16

Jim Marshall’s three children graduated Older 2s, Pre-K, and 1st Grade from Wesley Monumental United Methodist Church and Hancock Day School. Congrats, Heidi, Mac, & Elizabeth!

On May 12th, Trevor Jeans walked the stage and graduated from Georgia Southern University. Congrats!

Brandon and Kayla Parsley’s son, Mason, graduated pre-K from Wallburg Academy and will be starting his education at The Academy at Middle Fork in Walkertown, NC.

Jeff White’s daughter, Regan, graduated from ECU with her Masters of Science in Speech Language Pathology, and she accepted a role at MUSC Shawn Jenkins Children’s Hospital!

omega Q2 work anniversaries Happy work anniversary to the following individuals! We appreciate your hard work and dedication to Omega Construction.

CHRIS LEONARD

JUSTIN SNOW

MATT PARDUE

WILL ROBERTSON

ANJIE HODGES

TODD MAYO

DAVID MURRAY

HUNTER NORRIS

DUSTIN HUNTER

SCOTT FOURNIER

JIMMY CARTER

BARRETT HENNINGS

MAC MCMILLIAN III

CLINT TUCKER

CHRIS CRIGGER

WADE LEWIS

TAURINO MEDRANO

KENDALL KRUSE

Senior Project Manager, nineteen years Project Manager, fourteen years Accounts Payable, nine years Executive Vice President, nine years Vice President of Retail Division, nine years Superintendent, nine years Superintendent, eight years Superintendent, eight years Foreman, eight years

Project Manager, four years Superintendent, four years Vice President of Georgia Division, three years Assistant Superintendent, three years Senior Estimator / Project Manager, three years Assistant Project Manager, two years Superintendent, one year Controller, one year Assistant Project Manager, one year

EDDY BEASLEY

Equipment Operator, six years

TIM HAGWOOD

Assistant Superintendent, six years

LUKE THOMPSON

Assistant Superintendent, four years

CHASE BREWSTER

Assistant Superintendent, four years

WWW.OMEGACONSTRUCTION.COM

17