Aqua (Page 1); Green Building and Technology (Page 2); Construction Opportunity Program (Page 3)

The

Builder BUILDING YOUR BUSINESS

VOLUME 11, ISSUE 1 FEBRUARY 2007 In This Issue...

Industry News p2 CCOP p4 Labor News p6 AGC News p9 Member Milestones p10 Member Marketplace p11 COMING ATTRACTIONS Feb. 13 Construction Education Institute: GRN 180 Chicago’s Green Permit Program, Chicago Architecture Foundation, 12:15-1 p.m.

Feb. 28 Construction Education Institute: MGT 410 FMI Expert Series: Why Contractors Go Bankrupt; Clubhouse, Oak Brook, 11:30 a.m.-1:30 p.m.

builders association BUILDING YOUR BUSINESS

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High Water

McHugh Construction Company Begins Work On Unique, Mixed-Use Aqua Tower

BY ANDY COLE Even for a company known for its work with original concrete projects, the Aqua tower on Columbus Drive presents an all new set of challenges to James McHugh Construction Company.

One would think that Concrete Superintendent Paul Treacy had seen enough of water after he and his crew had to pump around 300,000 gallons of it out from the bottom of the jobsite before continuing with concrete work.

Quite the contrary, Treacy’s looking forward to the day when those driving by, living in or doing business in the planned 835-foot tall tower are marveling at how the concrete is made to look like water.

“Most buildings, it’s easier to be productive because it’s repetitive,” Tracy said. “When you do things like what we’re doing, with a unique setup to every floor, the cost of labor goes up and your cost per square foot goes up.

“I think (McHugh) takes great pride in being able to do these challenge projects and do them well. I think one of the reasons we’re doing this project is you look at a lot of the buildings we’ve done like Marina City and some of the other things. We’ve done many projects that have been unique and we’ve done them very well.”

The design by Jeanne Gang of Studio/Gang/ Architects is completely unique in terms of the building’s exterior.

The tower’s concrete will be given a wave-like appearance due to the different sizes of the floors.

Variances in each floor plan and their balconies will give the mixed-use building a truly one-of-akind exterior. Completion is slated for late 2009

please see Aqua, page 6

An artist’s rendering of Aqua Tower, which is scheduled to be completed in 2009.

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Feature

Green And The Machines Experts Weigh In On Impact Of Building Information Modeling, Green Building

BY ANDY COLE

The following is the conclusion of an article printed in the December issue of The Builder. Four construction professionals dedicated to sustainable building and two education professionals were asked about the impact of BIM (Building Information Modeling) and green building on the construction industry, and how those two elements together could create better buildings and save contractors money.

VICKI WORDEN Green Building Initiative Each professional, whether partial to the green ratings system from the United States Green Building Council (LEED system) or the Green Building Initiative (Green Globes), saw 3-D modeling as another important part of creating a building that lasts.

Worden is working to increase GBI’s use and further develop and publicize the Green Globes rating system. She points out that buildings using sustainable construction are starting to prove that they can stand the test of time, making things cheaper in the long run for those who build them.

“From a competitive advantage angle, Green Globes is already well positioned with internet and software-based tools,” Worden said. “I think Green Globes is extremely focused on actual building performance.

“These ratings systems help construction companies measure their performance

and increase their efficiency. You could say that about BIM, also, and in the long run it doesn’t cost as much to build using these tools.”

While those out in front of the LEED and Green Globes initiatives may have different viewpoints about how to accomplish the same thing, the entire sustainable construction community has noticed the industry as a whole taking a step forward. The increased numbers of green buildings and an upswing in the use of systems like BIM show Worden and others that the industry is capable of more than just standing still.

“There are a lot of numbers out there that are showing increased awareness of green building and BIM and increased knowledge in both of those,” she said. “I think health issues are a big concern to some, and that’s increased the public’s awareness of green building, as well. People want to know what impact that building is going to have on their health.

“Green building and BIM are economically sound, which has also increased their reach. Where they might not have a few years ago, people in the industry now understand how these advancements can help their bottom line.”

THOMAS TAYLOR Vertegy Alberici Constructors of St. Louis has a history of being a leader in green building, and Vertegy Consultants – founded by Thomas Taylor of Alberici – has proven

to be just as progressive. Not only did the Alberici headquarters earn a LEED Platinum rating, it was named the “greenest” building in the world by the USGBC. Vertegy also spurred the building of a green auto plant – the General Motors Assembly Complex in Lansing, Michigan.

“Any time you’re using information about the building, you’re going to make a better informed decision,” said Taylor. “If you use the information the model gives you, you’re going to end up with a better building.

“When you can use a tool like BIM for some other things that are out in the marketplace right now, it streamlines the process and limits the mistakes you’re going to make. It makes a difference in the life-cycle of the building and the costs of

please see Machines, page 7

How Can We Help You? Have a construction-related problem or question? Call your professional trade association. While each BA staff member can assist you, you may often find it helpful to speak directly with the individual who has primary responsibility for a particular area. His or her name is provided for your convenience.

Al Leitschuh………………BA Governance Industry Relations Strategic Planning AGC Liaison Mike Schultze.………....Industry Relations Government Relations Denise Capasso.................................Labor Safety Ryan Schoonover........................Marketing Membership Development Andy Cole....…........……Communications Media Relations Stacey Kelly....….........……Administration Education Programs Katie Sells......…...Communications Intern

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CCOP Program

Patience Pays Off In Long Run For Hubbard Like most parents, Ceco Concrete Construction employee Roosevelt Hubbard is trying hard to teach his daughter the value of being patient.

If she wants a good example of how that patience can pay off, she needs only to look at what her father went through.

“The first program I was in trying to get into construction was a hands-on program with the Illinois Department of Transportation, but I was a quarter of the way through the program when they shut it down,” he said. “It really broke everybody’s heart, but then Dawson (Technical Institute) said that any of us who wanted to come back into their nineweek program for carpentry could do that by passing a test. “(Dawson’s) Harry McGraw told me to be patient. He told me he’d do everything in his power to get me a job and all I had to do was be patient.”

New Members The Builders Association welcomes the following new members: BryceDowney, LLC 200 N. LaSalle St., Suite 2700 Chicago, IL 60601 www.brycedowney.com BryceDowney is a firm of accomplished construction and business counselors and trial lawyers committed to service, success and satisfaction. They represent general contractors, trades and developers. With offices in Chicago, Memphis and Atlanta, BryceDowney serves its clients’ needs with a regional concentration while maintaining a national practice.

Enterprise Fleet Services 395 Roosevelt Road Glen Ellyn, IL 60137 www.efleets.com Enterprise Fleet Services helps companies with 15-125 vehicles in their fleet by controlling costs such as acquisition, funding, maintenance, fuel, insurance and disposal. The results include overall savings, an increase in profit for the company and a positive impact on the company’s bottom line.

It wasn’t long before that promise was fulfilled for Roosevelt.

Hubbard got his wish when Builders Association members and other companies appeared at Dawson for a career fair as part of the Construction Career Opportunity Program. Along with other students in the program, he was given the chance to essentially interview for a dozen jobs at the same time.

Roosevelt is just one of the students who has been assisted by the CCOP - a collective effort of the City Colleges of Chicago, three community action groups and the Builders Association.

Students take courses through Dawson Technical Institute in: Basic or Advanced Carpentry; Cement Masonry; Bricklaying; or Plumbing and Fire Protection. Students

are then sponsored for apprenticeship by Builders Association members, and the Builders Association provides funds for tools and apprentice fees through a fund it has established.

Roosevelt faced a myriad of obstacles on the way to his chosen profession.

“I was involved in an auto accident where there was a fatality, so I was in an ex-offender program,” Roosevelt said.

“I just kept hustling and hustling and trying to make something work, but with something on your record it’s difficult to get a second chance.”

Once Hubbard had that second chance, however, it didn’t take him long to run with it.

please see CCOP, page 4

The Builders Association gratefully acknowledges the following sponsors of the 100th Anniversary Annual Meeting: PLATINUM SPONSORS Chicago Regional Council of Carpenters Union Carpenters, Contractors Labor Management Assoc.

GOLD SPONSORS Bulley & Andrews George Sollitt Construction Company James, Schaeffer & Schimming McShane Construction Corporation Pepper Construction Company Ryan Companies U.S. SILVER SPONSORS Chicago Area LECET Henry Bros. Company LaSalle Bank McDonald Modular Solutions Takao Nagai Associates Valenti Builders BRONZE SPONSORS Scown Building Company W.B. Olson 3

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T H E

B U I L D E R “(Dawson Technical Institute’s) Harry McGraw told me to be patient. He told me he’d do everything in his power to get me a job and all I had to do was be patient.”

-Roosevelt Hubbard Ceco Concrete Construction

CCOP, from page 3

Roosevelt Hubbard stands outside of what will soon be a parking lot on S. Michigan Ave. on a snowy January day. Hubbard, who is employed by Ceco Concrete Construction, is one of the students who have benefitted from the Construction Career Opportunity Program.

Get Involved

The following companies have committed to participate in the Construction Career Opportunity Program.

If you would like your company to be added to this list, contact Al Leitschuh at (847) 318-8585.

Bovis Lend Lease Bulley & Andrews, LLC Ceco Concrete Construction Garth Construction Services Corporation Herlihy Mid-Continent Company Kenny Construction Company James McHugh Construction Company McShane Construction Corporation Pepper Construction Company Power Construction Company Ryan Companies US Inc. The Clark Construction Group The George Sollitt Construction Company The Levy Company Thorne Associates Inc. Tribco Construction Services, LLC Turner Construction Company W.B. Olson, Inc. W.E. O’Neil Construction Company Walsh Construction

“It’s changed my life tremendously,” Roosevelt said of being involved in construction. “I knew I wanted to do something to help the community and I knew I wanted to use the knowledge that I have working with my hands, but I wasn’t really sure how to get there.

“You have so much you want to do, and you thank God for the time when opportunity knocks and you’re able to answer it.”

After talking with other companies about positions they may have had open at the job fair, Roosevelt was offered a way into an apprenticeship on the spot by Ceco. It offered him a chance to have a hand in helping the community to fulfill one of his short-term goals. It wouldn’t be long before his long-term goals began to fall into place as Hubbard got married and he and his wife were able to purchase a home.

In addition to their south side Chicago home, the Hubbard family has purchased a townhouse in Hoffman Estates, which they plan to fix and rent out.

“Financially, you start small, but it gets bigger and bigger and the incentives increase with the amount of work you do,” he said. “It’s been great in terms of money issues. It’s given me what I need to take care of my family. I had to be patient and keep working, and I’m happy with where I’ve ended up and what people have helped me to do.

“My father passed away when I was very young, and there some things that I went through that made it hard for me to get some of the things I wanted for myself and the people around me. (Construction) has been a way to get those things. I’m going to be able to give my daughter many of the things that I didn’t have. It’s a blessing from God.”

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Labor News

What Constitutes A ‘Supervisor’?

National Labor Relations Board Decision Has Impact On Work World, But Impact On Construction Is Limited ROBERT P. CASEY Ogletree, Deakins, Nash, Smoak & Stewart, P.C. At the end of September, 2006, the National Labor Relations Board (NLRB or Board) issued a series of decisions which redefined who is and who is not a supervisor under the National Labor Relations Act (the Act). This determination is critical, as employees who meet the definition of a supervisor are not entitled to union representation.

The Board’s decisions garnered a lot of publicity and were widely considered to be a victory for employers--though the companies involved in the cases didn’t fare so well--largely because labor unions made loud noises about the decisions being unfair to unions and to workers.

And while that perception may or may not prove correct for some employers and industries, many contractors have asked whether the decisions will likely have much impact on the unionized segment of the construction industry. Only “time will tell” in the final analysis, but at least at first blush it does not appear that the effect of these decisions will be very pronounced for union contractors.

Legal Background The Act states that “supervisors” are excluded from the definition of “employee” and, as a result, are not entitled to the protections of the statute, including the right to organize. The Act defines a supervisor as “an individual having the authority . . . to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibly to direct them, or to adjust their grievances, or effectively to recommend such action, if in connection with the foregoing the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment.”

As noted by the Board, the definition is so detailed because the Act’s goal was to distinguish true supervisors (those possessing management authority) from “straw bosses, lead men, and set-up men” (those that only perform minor supervisory duties). This has proven, however, to be a very difficult task for both the NLRB and the courts. In fact, in 2001 the U.S. Supreme Court issued a ruling directing the NLRB to define several of the key terms in this definition – specifically “assign,” “responsibly to direct,” and “independent judgment.” That is the task the NLRB assumed in these recent cases.

The New Standards According to the NLRB, the term assign refers to “the act of designating an employee to a place (such as a location, department, or wing), appointing an employee to a time (such as a shift or overtime period), or giving significant overall duties,

i.e., tasks, to an employee.” For example, assigning an employee to perform certain duties may constitute assigning – but telling the worker in which order to perform previously assigned tasks would not.

The NLRB then turned to defining “responsibly to direct.”

The ruling first notes that this provision was included to ensure that the exemption included individuals who “exercise basic supervision but lack the authority or opportunity to carry out any of the other statutory supervisory functions.” In light of this, the Board found that to establish “responsible direction” two elements must be shown: 1) the employer delegated to the individual the authority to direct the work and the authority to take corrective action; and 2) there is accountability for the individual – in other words he or she may experience adverse consequences if this authority to direct the work is not properly applied.

Finally, the NLRB evaluated “independent judgment.” The first point made is that in evaluating independent judgment the key issue is the degree of discretion involved – not the kind of discretion exercised. Therefore, professional or technical judgments involving independent judgment are supervisory if they involve one of the 12 supervisory functions listed in the definition.

In defining independent judgment, the NLRB evaluated

please see Supervisor, page 8

OGLETREE DEAKINS Attorneys at Law Construction Industry Group

LIFTING SERVICE TO NEW LEVELS

Two First National Plaza, 25th Floor • Chicago, Illinois 60603 P: 312.558.1220 • F: 312.807.3619 • www.ogletreedeakins.com

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T H E B U I L D E R Aqua, from page 1 for the tower, which will include a hotel, retail space, private office space, a six-deck parking garage, ballrooms for two hotels and residential space.

“There’s nothing that I know of even like it around here,” McHugh Project Executive Dave Alexander said of the project. “Marina City’s probably about as close as you’re going to get. In my opinion, we do these kind of unique projects better than anybody.

“It’s a 36-month project that’s just getting underway. It’s going to be a big challenge, but it’s also something we’re very proud to be a part of.”

When the tower begins to go up, McHugh will be using Building Information Modeling in a limited capacity.

“It won’t be a full-blown (BIM) project, but it’s really going to help us when it comes to getting through those areas congested with a lot of rebar,” Alexander said. “If we were building a nuclear power plant or something like that, we’d be more likely to use (BIM) for the whole thing, but 3D aspects of it come in very handy in some portions of (the Aqua Tower project) “The first project we really used a full-blown BIM approach on was Trump Tower. We’ve used it in a lot of other projects in isolation, and we’re finding that we’re using it more and more. It can show you where some problems are that could cost you time and money and you get to see the best way to work around those, so that’s what it’s doing for us in those congested spots on this project.”

According to Alexander, the balconies will range between zero and 12-feet deep, creating different views of other Chicago landmarks in addition to giving the building a pleasing visual effect on the outside.

Over 30,000 feet of railing will top the balconies, and since no two balconies will be alike, the railings will need to be custom-fitted as well.

“It’s a 36-month project that’s just getting underway.

It’s going to be a big challenge, but it’s also something we’re very proud to be a part of..”

-Dave Alexander James McHugh Construction Company Project Executive As time consuming as the originality of the project will make it, Alexander

and Treacy believe it will be well worth the wait. The ground-breaking design will help the building fit in with its innovative neighbors downtown.

“Every building, every project seems unique to me,” he said. “Each one has challenges that make it different. This building is even more so because not only are no two floors alike, there’s nothing built like this around here so we’re working off of our own template.

“Chicago’s a great city for architecture.

There are original things and innovation all around you. You want to be working on something that’s a new idea because it’ll fit well with the great things that are around it.”

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Machines, from page 2 maintaining that building.”

Construction prognosticators see increases in green building and the use of BIM in the commercial industry in the coming years. Taylor has noticed that these tools have become the rule rather than the exception for many corporations as time has gone on.

“There are many different reasons why a wider amount of people are accepting this,” he said. “Both sustainable building and BIM have been around long enough now that people are familiar with them and know about the advantages of them. You’re seeing people like Ford and Toyota and Anheuser-Busch use those tools more and more.

“The costs of raw goods and fuel and energy are rising. None of those things are going to diminish any time soon, if ever. Green Globes offers an alternative to the ‘Brand X,’ which would be the LEED system, and the emergence of that signifies that more people are looking to green building as an option to take costs down.”

Green building can lead to a lighter price tag in labor, materials, waste disposal and up-front costs during construction and less money for energy, maintenance, water and insurance once the building is in operation.

“Any of the ratings systems look to see how you reduced the amount of overall labor,” Taylor said. “Reducing labor and using recycled materials are part of that. To me, green building takes in a lot more than just the environmental concerns, and that’s where BIM comes into play. It’s not about trying to get tradespeople out of the picture or architects out of the picture, it’s about making the entire building more efficient.”

Still, Taylor was quick to point out that neither the technological advances in construction nor the green building ratings systems guaranteed a contractor anything.

“It depends on if the drawings are good and the information is done correctly,” he said. “BIM is not the magic bullet. There are still a lot of variables.

“There are new things coming online so quickly now, and just because somebody says it’s sustainable doesn’t mean it is. As a contractor, you have to be careful.”

LEON LAJEUNESSE Custom Contracting Since founding Custom Contracting in 1987, Leon LaJeunesse has worked tirelessly with clients to help them realize the advantages of green building. He served as treasurer for the USGBC and is currently on the Builders Association’s Board of Directors.

While Custom Contracting focuses on green building, it wants to stay ahead of the game in other areas, as well, which is where building information modeling comes in.

“With the integration of BIM, you can incorporate the energy modeling that’s already a part of green building and make for a much more efficient overall delivery of the building,” said LaJeunesse.

“Even if the contractor isn’t looking for a specific certification, they’ll use the green building standards as a guideline.”

In addition to saving money, each approach can help cut down on fumes that would normally make for an unhealthy work environment. While green building has the capability of cutting

down on some of the health-related pitfalls, programs like BIM compliment sustainable building by stopping some problems before they become problems.

“Looking at it from a trade labor standpoint, there are a lot less toxic materials used which means not as many fumes,” LaJeunesse said. “Unions are starting to understand the installation of green buildings better and they’re starting to learn more about the positive impacts not only for the environment, but for the people working on the buildings.

“There are fewer variables, and if everyone’s around the same table you know whose taking responsibility. (BIM) just makes things easier.”

UJJVAL VYAS Alberti Group, LLC Any construction project will have its difficulties, but Ujjval Vyas sees recent developments in the industry as ways to lessen or even eliminate some of the bigger problems contractors encounter.

“You run into three problems: You never have infinite information, you never have infinite resources, and you have to make the decision immediately,” Vyas said. “People in the industry are seeing sustainability and BIM as a way to help with all of those problems.

“People are plunking down big money for these buildings. If you want a building to perform better, you need to use these tools. Owners who want to get their money’s worth are realizing that.”

A former instructor of architecture at both the graduate and undergraduate levels, Vyas specializes in construction law and sustainable building continues to be a major focus for him. As end results of the changes the industry is going through, he sees a streamlined bidding process and a much easier way for the owner of the building to get real information.

“With or without green building, BIM is a very useful tool for limiting risks,” he said. “That’s magnified when you start to use some sort of building information modeling because you know even more about the building and the problems that could come up.

“If you’re an owner and there’s a problem with the building, you don’t want any of the finger-pointing between the architect and the contractor and the subcontractors that sometimes happens. You want to say ‘here’s a problem … go fix it.’ Mixing in building information modeling is more likely to give the owner someplace specific they can go with a problem, rather than just a general idea.”

In addition to contractors getting wise to what BIM can do for them within the parameters of sustainable building, Vyas sees many more advantages to those in the marketplace.

“For a long time, owners would say ‘that’s just the way it’s been,’” he said. “For a long time, anybody in a red pick-up truck could be a contractor. Companies now are doing a great job of pre-screening who they build with, which is great because it’s forcing the bidding process to go to the lowest possible rate.

“One of the benchmarks of sustainable building is saving energy wherever it’s possible to do so and that ties into BIM, as well. In general, it just helps create a better, more efficient product.”

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T H E B U I L D E R Supervisor, from page 5 the impact of employer policies, rules, or directives on the assessment of supervisory status. A judgment is not independent, the Board ruled, if “it is dictated or controlled by detailed instructions, whether set forth in company policies or rules, the verbal instructions of a higher authority, or in the provisions of a collective bargaining agreement.”

Applying Facts to the Law The next step for the NLRB was to apply these new standards to the three cases before it, none of which arose in the construction industry. The first case, brought against Oakwood Healthcare, Inc., involved charge nurses. These registered nurses are responsible for overseeing certain patient care units and assigning nurses and other hospital employees to patients on their shifts. They also monitor the unit and respond to unusual situations.

The NLRB held that the charge nurses “assign” within the intended meaning of the statute by directing other hospital employees to engage in specific tasks. Further, in assigning nurses (and their often unique talents) to specific patients, the charge nurses exercised “independent judgment.”

However, the NLRB concluded that the charge nurses are only held accountable for their own performance and not the performance of those they supervise – therefore there is no “responsible direction” and the charge nurses are not “supervisors” under the Act. Oakwood Healthcare, Inc., 348 NLRB No. 37 (2006).

The second case also involved charge nurses – this time employed at a nursing home. Again the Board found that the charge nurses were not held accountable for the actions of the other employees that they directed; therefore they cannot be classified as supervisors. Moreover, the NLRB concluded that

the charge nurses didn’t even have the authority to require that other nurses shift their work assignments, and as a result they did not “assign” either. Beverly Enterprises-Minnesota, Inc. d/b/a Golden Crest Healthcare Center, 348 NLRB No. 39 (2006).

The third case involved lead persons in the manufacturing sector. These individuals oversaw production and had authority to determine in which order the work would be performed. In addition, they were held accountable for their group – which established that they responsibly directed workers. However, the NLRB continued, the responsibility that they exercised was routine in nature (generally stemmed from pre-established guidelines) and thus they could not be classified as supervisors.

Practical Impact Though these standards are far from “crystal clear,” they do better define who will be considered to be a “supervisor.”

Moreover, these standards – while not particularly helpful to the three employers involved in these cases – may well help employers in some settings and industries to classify workers as supervisors (and therefore outside the coverage of the Act).

But that is not likely to be the case in the unionized segment of the construction industry, in our view.

The law permits supervisors to be union members and the law permits employers to agree to cover supervisors, foremen, general foremen or job superintendents in labor agreements These new decisions do not change the law on those points. As a result, most unionized contractors will probably not want to change the status quo by trying to remove any foremen, general foremen, supervisors or job superintendents from the coverage of their labor agreements, regardless of what the definition of supervisor is under the National Labor Relations Act. As a practical matter, when supervisors “come out of” the trades, they continue to be covered by at least certain portions of the union agreements (particularly fringe benefits) and to change that status quo would likely be met with resistance by the supervisors themselves. For open shop contractors, however, the situation is different. These new decisions will provide open shop construction employers with added support for excluding foremen, supervisors, and job superintendents who satisfy the new definition of supervisor from being part of the group of workers a construction union is entitled to represent, when that union is trying to gain representation rights among a group of non-union construction workers.

On the flip-side, these decisions may also give the petitioning union the ability to exclude such foremen, etc., from the list of persons eligible to vote in a Board election— potentially depriving the contractor of the votes of those who may have worked their way “up through the ranks” and who might be expected to be loyal to the company. And, finally, these decisions make it imperative to determine in the context of a union election campaign “who” meets the new criteria, because the employer will be held responsible for any misconduct of such “supervisors” in the campaign.

This is our initial reaction to the Board’s new “supervisor” decisions and how they may affect the construction trades and contractors, but there are many unanswered questions about the impact of these new rulings that will only be answered over time. Employers looking to assess the impact of the decisions on their specific operations should consult with their labor attorney.

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AGC News

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Improvements Abroad = Higher U.S. Prices A surge in construction materials has been directly related to the economic growth and infrastructure investments in the Middle East, Asia and India. Therefore, it is vital for the U.S. to continue to do more to keep its infrastructure from falling behind to its competitors, according to Stephen E. Sandherr, Chief Executive Officer of the Associated General Contractors of America (AGC).

Sanderr spoke after AGC’s Executive Board adopted a set of legislative priorities for the 110th Congress, which convened on

Industry Numbers Both Good, Bad Near End Of 2006 The January 3rd report from the Census Bureau for November of 2006 indicated a strong increase in private non-residential projects while residential projects are on the decline.

According to Ken Simonson, Chief Economist for the Associated General Contractors of America (AGC), nonresidential spending showed a strong 1.2 percent gain in November, even after the October figure was revised from a small loss to a 1.1 percent gain.

“Meanwhile, residential construction spending shrank again in October by 1.6 percent, bringing the cumulative decline to 11 percent since peaking last March.”

Of private non-residential projects, those showing the highest levels of growth include lodging, electric power, manufacturing and health care construction.

“For instance, lodging construction—mainly hotels and resorts—jumped 4 percent in November and was up 71 percent from the November 2005 level,” Simonson said.

Simonson also evaluated the two major public categories highway and street construction and education - and indicated that the total public construction rose 1 percent in November, up 11 percent from November of 2005.

After Simonson did a complete overview of building trends in November of 2006, he concluded that, “energy and power related construction, hotels, hospitals and rental housing will all perform well, while single-family and condo construction will sink the totals.”

January 4th.

“During the last three years our industry has coped with annual double digit cost increases impacting critical construction components from cement and steel to gypsum and copper, Sandherr said. “The global demand for these products has caused a price surge.”

“Today we renewed our commitment to promote strategic federal investment in transportation infrastructure, environmental infrastructure and improve the energy efficiency and utility of existing infrastructure,” Sandherr said.

The AGC reported the construction industry accounts for more than seven million employees in the United States. Within the past 12 months, roughly $1.2 trillion dollars in construction were put in place as well as nearly $600 billion in equipment and materials from U.S. manufacturers. However, within the last three years, the industry has been impacted by drastic increases in construction materials as well as global competition.

The infrastructure investments over the past 12 months will keep the U.S. competitive. However, strategic investments, favorable tax and regulatory environment are needed to continue this competitive edge, according to Sandherr.

“Tax policies should not punish U.S. businesses and environmental laws need to lead the world but also balance the economic needs of the country,” Sandherr stated.

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Member Milestones Two executives from Builders Association members were recently honored by Midwest Real Estate News. James A. McShane of McShane Construction Corporation and Jeff Smith

of Ryan Companies, US Inc. were two of the individuals profiled in Forty Over 40, the magazine’s listing of accomplished commercial real estate personalities.

McShane is the founder and CEO of the McShane Construction Corporation and has overseen the company’s expansion into six more offices in the south and west.

Smith is the President of Ryan’s Midwest Division and has over 20 years of construction and development experience.

Barbara A. Gimbel has been named a partner at Holland & Knight, LLP. Ms. Gimbel represents construction companies, commercial banks, corporations, insurance companies, partnerships and individuals in regard to complex litigation matters. She graduated the University of Illinois magna cum laude in 1995 and received her Juris Doctorate degree from DePaul University College of Law in 1998. She has authored papers in numerous publications and has been recognized twice by Holland & Knight for her dedication in pro bono service.

Three Builders Association companies dotted the list of the Top 225 Global Contractors published in the December issue

McShane

Smith

Gimbel

of Engineering News-Record Magazine. Pepper Construction Company is rated 129th with $850.9 million in revenue in 2005.

W.E. O’Neil Construction Company is 187th with $502 million, and James McHugh Construction Company holds the 207th spot with $445.1 million.

The George Sollitt Construction Company won awards of distinction at the 2006 Joint Annual Conference of IASB (Illinois Association of School Boards), IASA (Illinois Association of School Administration) and IASBO (Illinois Association of School Business Officials) for its work on two schools.

Soliltt’s work as general contractor on both Farragut Elementary School in Joliet and Seth Whitman Elementary School in Belvidere caught the eye of those organizations. Nine projects earned Award of Distinction honors of 29 nominated.

McShane Companies is proud to announce the formation of McShane Medical Properties.

This is a new corporate entity that joins the growing real estate and construction services firms of the McShane Companies. It will acquire existing medical properties as well as offer

please see Milestones, page 11 10

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V O L U M E

Milestones, from page 10 other real estate services including property management and financial services. McShane has selected Raymond M. Braun, President and Alexander M. Halavacek, Chief Operating Officer to oversee McShane Medical Properties.

Clark Construction Group has started work at 300 North LaSalle in Chicago, a 60-story office building. Once completed, the building will be one of the tallest in Chicago at 800 feet.

The project will include a café overlooking the Chicago River, a half-acre public plaza by the river, office space, retail space, conference and restaurant spaces and parking. The project is slated for December 2008 completion.

Bulley and Andrews LLC announced the completion of the Concordia Avondale Campus, a learning center for educational and recreational activities. This project broke ground in August of 2005 and achieved substantial completion in August of 2006.

The construction team for this project included Paul Hellermann, Project Executive; Timothy Puntillo, Senior Project Manager; Angela Wisker, Project Manager; Jay Quinn, Superintendent; and Gloria Villanueva, Project Accountant.

Bulley and Andrews is proud to announce several new employees. New additions to the office staff include project engineers Peter Kuhn, Jeff Reist and Drew Walters. Gabriela Oritz joined the firm as a Project Accountant. The company is also proud to recognize the efforts of the following individuals who earned promotions: Carpenter Foremen Brian Rice, Ron Story, Dan Therriault and Larry Wood; and Labor Foreman Keith Davis.

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Commerical Real Estate Awards Dinner Mar. 15

The Greater Chicago Food Depository will be hosting its 19th annual Commercial Real Estate Awards Dinner to recognize the achievements of individuals and firms throughout the Chicago land area.

The event will be held Mar. 15 at the Hilton Chicago located at 720 S. Michigan Ave. All proceeds will be donated to the Greater Chicago Food Depository.

Real Estate Awards will be given in 15 categories at the event, including: • Architect of the Year • Build-to-Suit Project of the Year • Developer of the Year • Development of the Year • Industrial Brokers of the Year • Interior Contractor Firm of the Year • Interior Design Firm of the Year • Investment Brokers of the Year • Office Brokers of the Year • Project Managers of the Year • Property Management Company of the Year • Property Representative of the Year • Redevelopment of the Year • Retail Brokers of the Year • Special Achievement of the Year

Member Marketplace The Builders Association’s Affiliate members are respectable and responsible companies. The products and services are among the best in the area in their fields. By virtue of their association membership, these companies support the Chicagoland construction industry.

The Builders Association encourages its contractors to use A f f i l i a t e m e m b e r s w h e n l o o k i n g f o r p r o d u c t s o r s e r v i c e s.

Ceco Concrete ranks among the nation’s leaders in concrete construction as the largest formwork subcontractor.

In Chicago, Ceco has a rich 92-year history of notable projects such as 311 S. Wacker, the Loop Transportation Center, Riverview I & 2, Riverbend and the Optima Projects. Ceco’s operational philosophy is safety, quality, performance.

Ceco Concrete Construction 2626 Warrenville Road, Suite 500 Downers Grove, IL 60515-1776 630-852-0505 www.cecoconcrete.com Phil Diekemper, District Manager pdiekemper@cecoconcrete.com

Grove Masonry Maintenance, Inc. is a family-owned business with expertise in all aspects of exterior wall maintenance and repair. They specialize in masonry restoration, building inspections, facade repairs, terra cotta repair and replacement, tuck pointing, caulking/sealing and concrete restoration.

Grove Masonry Maintenance 4234 W. 124th Place Alsip, IL 60803 708-385-0225 www.grovemasonry.com Brad Grove, President brad@grovemasonry.com 11

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T H E

B U I L D E R The

Builder The Builder is published periodically by the Builders Association, a trade association of commercial, industrial and institutional general contractors and affiliated industry firms dedicated to quality construction in the Chicagoland area.

2007 Board of Directors John Benz William J. Scown Building Company George Ferrell Henry Bros. Co. Paul Hellermann Bulley & Andrews Leon LaJeunesse Custom Contracting, Ltd.

Our Practice Is Building

John O’Malley Case Foundation Company

On behalf of contractors, architects,

J. David Pepper Pepper Companies

engineers, subcontractors, public and private owners, Seyfarth Shaw provides

John Russell W.E. O’Neil Construction Co.

legal representation and risk management counseling at all stages of the

Howard Strong George Sollitt Construction Co.

construction process.

Sheri Tantari McShane Construction Corp.

To learn more about our Construction Practice, please visit www.seyfarth.com/construction

Dana Thorne Thorne Associates ATLANTA

BOSTON

CHICAGO

HOUSTON

LOS ANGELES

NEW YORK

SACRAMENTO

SAN FRANCISCO

WASHINGTON, D.C.

BRUSSELS CH-06-0012

Lynn Treat Ryan Companies US, Inc. The Builder Staff Andy Cole Editor, Advertising Sales Katie Sells Communications Intern

Builders Association 9550 W. Higgins Rd., Suite 380 Rosemont, IL 60018 (847) 318-8585 www.bldrs.org Copyright ©2007. All Rights Reserved.

Have a story idea for The Builder?

Contact Andy Cole At acole@bldrs.org

Representing the Associated General Contractors of America in the Chicagoland metropolitan area.

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