Issuu

BY CARYN GIZNIK In

Volume 12, Issue 5

January 2009

The Builder

A Builders Association Publication

May 2007, a crane slammed into a Loop building, causing surrounding buildings to be evacuated, and several problems for public transportation. This July, a Mason County man was killed at a construction site in Normal, IL after the boom of the crane collapsed onto the basket of the aerial lift. According to the Bureau of Labor Statistics there were 72 crane-related fatal occupational injuries in 2006, 61% were related to the contact with objects or equipment. This year there have been nine crane-related deaths in New York. From urban to rural locations, crane safety is being dissected within the construction industry to ensure contractors and crane owners take the right precautions. “The demand for power cranes has been so great that it’s been harder for the owner to keep the equipment properly maintained,” said Ralph Pound of James McHugh Construction Company. “The second that crane is done on a job, somebody needs it somewhere else.” “It’s slowing down a bit now, but there’s no doubt that one of the biggest concerns the last few years has been having enough time and enough people to do things the right way.” Brian Sturtecky of the Occupational Safety and Health Administration (OSHA) explained that crane accidents are more likely than not the cause of human errors due to rigging failure, knowing the proper weight a crane can hold and whether the rigger is qualified. Engineering News-Record reported that the tower crane snap in New York this May was caused by a faulty weld made in China. The New York Times reported in early September the New York crane-related accidents in March and May occurred during a jump or rising of the crane. “Crane accidents occur because of By attending Builders Association events, members an operator’s lack of inspections, and lack of crane maintenance,” said took advantage of the opportunity to hear the insights of Sturtecky, who added that OSHA has Pension fund expert Rocky Miller (above), Chicago 2016 up to six months to investigate an accident. He also points out that there CEO Pat Ryan and AGC Senior Vice President J. Dougare many factors for consideration and Pruitt during the last two months of 2008. Read Morethat that whoever knew of the conditions about the meetings and the benefit they provided inside. caused the accident is ultimately responsible. Both general contractors and subcontractors are responsible when it comes to crane safety. Contractors are required to: • Insure subcontractors • Make sure the lift plan is in place Association Supports • AGC Weighs Impact Economic Outlook Bid For Olympics Of Election Increasingly Dire Provide See Insert Page 3 Page 12 appropriate weights • Ensure the crane has been inspected and is certified operated

Meetings Of The Minds

Also In This Issue...

Project Spotlight

Flyin’ Ryan Angled windows, a plasma television, a comfortable waiting area and a cafe now sit next to a hangar at J.A. Air’s center of operations, Aurora Municipal Airport in Sugar Grove. Ryan Companies US, Inc. overcame a number of challenges to complete the project in seven months.

Quick Change To Remodel Job Doesn’t Slow Down Building On J.A.Air’s New Facility BY ANDY COLE Anyone who’s seen the movie “Major League” should remember the scene where the Cleveland Indians look on in horror are shown the plane they’ll be flying on…an ancient propeller plane with duct tape on one wing. Ryan Companies Field Coordinator Corey Higgins may have had a similar look about him the first time he stepped into the Aurora Airport hangar his team would eventually rebuild and expand. “We got out there on the first day of the remodel and the facility was an old hangar with one helicopter in it,” he said. “The hinges were in bad shape and I think

the door was about to fall off. “The area had been built in the seventies and had served its purpose very well, but to look at the finished product out there now, I think everyone who worked on the project can be very happy that we’ve built something that’s going to serve J.A. Air well for years to come.” Those workers can also be proud of their ability to adapt quickly to change. Ryan had originally been contracted for a design/build project that included a new hangar in a new location, but when funding from an outside source dried up the project became a remodel and addition to the existing facility just days before building the new facility was to begin.

Throw in time pressure for a facility that J.A. Air needed, and Higgins and Project Manager Mark Sheets had an incredible number of ducks to get in a row. “We went from a brand new building to a redesign and it all happened pretty fast,” Higgins said. “It took a lot of coordination with the subcontractors and the trades and anybody who was working there. Basically, Mark and I had to be the guys who made sure everybody was ready for this change on short notice. “Since the plans changed we didn’t know, a whole lot right away about the existing facility. We didn’t know where

see RYAN, page 18

T H E

B U I L D E R

Legislative

Unions Look For Greater Foothold As Obama Takes Office Employee Free Choice Act, RESPECT Act Among Items National Legislators Could Soon Take Action On At meetings around the nation and in a number of AGC of America publications in 2008, Jeff Shoaf tried to hammer home the positives of contractors getting as involved as they can with politics. As President-Elect Obama takes office and pro-union interests take a run at legislation with a legitimate chance of passage, that message is being delivered with an even greater sense of urgency. “There’s not much we can say about card-check that hasn’t already been said,” said Shoaf in reference to the Employee Free Choice Act (EFCA), which would limit the ability of workers to vote on a secret ballot in a workplace looking to unionize. Instead, workers would be giving the option of how to unionize – elections or majority sign-up. If a majority of employees sign a card supporting union representation, the National Labor Relations Board (NLRB) could designate the union as the collective bargaining representation for those employees. In that scenario, the NLRB would be playing a role it hasn’t in the past, and the specifics of that role are among the many things that will only become clearer with time. “There’s no regulatory framework,” Shoaf said. “The NLRB doesn’t typically do this sort of thing. It’s going to take some time to implement because the mechanisms just aren’t in place right now. There’s a whole lot of uncertainty.” Implementation of the EFCA would change: • How unions are selected by employees • How collective bargaining is conducted • Penalties assessed against employers • Who is considered a member of management Since reaching peak membership of close to 35 percent of all workers in the United States in 1954, Union membership nationwide has dipped to under eight percent, according to a video on the EFCA produced by Ogletree Deakins Nash Smoak & Stewart. The loss of market share for union construction in a number of major markets around the country increases concerns for construction unions, which would hope for a bump in membership to result from legislative activity. The House of Representatives has already passed the law, but until debate is done in the Senate it’s difficult to know how the EFCA might affect construction, according to Bob Casey of Ogletree Deakins. “I don’t think people have looked at all – much less a given a hard look – at how these acts together would impact the construction industry,” Casey said. “I don’t know that they care

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I S S U E

“You combine the RESPECT Act with card check, and it’s a dramatic easing in the ability to unionize for any company or anybody.” -Jeff Shoaf Senior Executive Director, Government & Public Affairs AGC of America

about that. “Chances are, there will be some changes made to the EFCA. Overall, it should have more of an impact in non-union areas that it will in areas like Chicago. It’s hard to gauge how big of a change

see LEGISLATIVE, page 4

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Greg Meeder, Regional Practice Group Leader James Carr James Chivilo Anthony Frink

Robert Gerstein Peter Herzog Jim Mueller

Charles Philbrick Chicago, IL 312.263.3600

LEGISLATIVE, from page 3

Association News

Russell Selected To Chair Association Board Of Directors W.E. O’Neil Construction Company President John Russell has been named Chairman of the Builders Association’s Board of Directors in 2009, becoming the third representative of O’Neil to hold that post. Russell has worked for W.E. O’Neil since 1982 and has worked his way up the ladder from Project Engineer to President. He is a graduate of the University of Illinois-Champaign (1981) and the Kellogg Graduate School of Management at Northwestern (2000). He joins William E. O’Neil (1954) and Arthur F. O’Neil (1969) as W.E. O’Neil representatives in the Builders Association’s Chairman slot. When the Board of Directors met in late November, they also announced the appointment of R. Lynn Treat (Ryan Companies) to Vice Chairman and Howard Strong (George Sollitt Construction Company) to Treasurer. Both Treat and Strong have served on the Board of Directors since 2005. James McHugh Construction Company Vice President Benjamin Johnston remains on the board and Custom Contracting President Leon LaJeunesse was elected to a second three-year term.

Russell

Treat

Departing Directors include: John O’Malley of Case Foundation Company; George W. Ferrell of Henry Bros.; Paul R. Hellermann of Bulley & Andrews, LLC; and Sherwin Mirsky. Hellermann has served on the Builders Association Board since 1996. Replacing the outgoing Directors will be three new Board members: • Michael Mozal, President, Joseph J. Duffy Company • Mark Rowland, Regional Manager, ISEC Inc. • Greg Scurto, President, Scurto Cement J. David Pepper of Pepper Construction Company finished his term as Chairman at the Annual Meeting December 10.

Pension Possibilities

Miller

Partially lost admist the myriad of financial conversations taking place recently has been what impact this credit crunch has on multiemployer pension plans. While the issue may not be at the forefront for some contractors, national pension fund expert Rocky Miller let Association members know why it should be. The Builders Association brought Miller - of Cox Castle & Nicholson LLP in Los Angeles - to the area in November to help sort through the current state of pension plans and what’s in store for the future. Miller discussed new rules regarding the pension plans and how those rules could change things for contractors. Prior to the holidays, President Bush signed into law the Worker, Retiree and Recovery Act of 2008, which took steps to correct the Pension Protection Act. For more on pension plans or any other labor issue, contact Denise Herdrich at the Builders Association (847.318.8585).

this will be right now for construction companies.” Adoption of the EFCA would nearly eliminate the amount of time employers have to present their side of the argument after cards are signed and sent to the NLRB. In addition, language in the bill as currently written makes it much easier to change agreements from 8a to 9f pacts, potentially posing another set of timepressure problems for contractors. “You’ve got a lot of contractors working under 8a agreements right now,” Shoaf said. “This would make it easy to turn those agreements into 9f agreements. The contract goes from being temporary to permanent, establishes a deadline for negotiation and sends it to binding arbitration after 180 days. “In effect, the Employee Free Choice Act would take away your ability to talk to your employees when they’re organizing, and hamper your ability to hold out for what you believe is a fair deal.” Another piece of legislation business owners need to be aware of is the ReEmpowerment of Skilled and Professional Employees and Construction Tradeworkers Act (RESPECT), which would change what constitutes a supervisor. The RESPECT Act would greatly increase the number of employees eligible to be covered by union benefits. “There were some cases out of the nursing profession where nurses who performed certain duties were classified as supervisors and thus couldn’t be in the Union, but didn’t have all the benefits of a supervisor,” Casey said. “The RESPECT Act is intended to reclaim some of those first-line supervisors into the bargaining unit’s ranks. “I don’t think it’s going to impact (the Builders Association’s membership) a great deal. There may be some cases in which a foreman who didn’t before now fits into that bargaining unit. I see it as having a greater impact in non-union markets.” What’s clear is that the two bills combined indicate a nod to union labor, with more legislation possibly to come. “There’s always the possibility it will make it easier for someone who had previously been labeled as a supervisor to join a union,” Shoaf said. “You combine this with card check, and it’s a dramatic easing in the ability to unionize for any company or anybody.”

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B U I L D E R

Association News

Grabbing Government Work Free Event Draws Sixty Contractor Representatives, Who Hear Why They Should Consider Working With U.S. General Services Administration As the financial terrain gets increasingly dicey, it’s important that a contractor look at every possible avenue for new work. The Builders Association brought one reliable owner that some companies may not have thought about working with in front of its members in November. Make GSA Work For You drew over 60 construction industry representatives to the Ralph H. Metcalfe Federal Building downtown. Representatives of the General Services Administration went over the GSA’s construction program, what it takes to qualify for a project and how contractors who have worked with the administration viewed the experience. The GSA also gave attendees a list of upcoming government projects. Chuck Hardy, Deputy Director of the GSA’s Property Development Division, stressed the variety of projects the GSA bids out and the importance of persistence in obtaining government work. “You might now get in the first time, the second time or the third time,” he said. “But, once you do get in and you do a good job, you’re in. In our region alone, we used over 300 contractors last year, so there’s work out there for big and small projects.” The GSA is seen as a leading owner in the construction industry and is out in front of the pack on a number of issues, including Building Information Modeling. Another advantage of applying for GSA work for small companies is the organization’s history of allowing small businesses to grow into large projects. Hardy also noted GSA’s history of ontime payment and a stable budget once a project begins. “We’re not looking for people who are experienced at what we do, but we are looking for people who are experienced at managing projects well,” he said. “A lot rides on the presentation your business makes to us. How you and your team present your development ideas makes a difference.”

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A panel of contractors who have worked wtih the U.S. General Services Administration discuss the experience in a conversation facilitated by GSA’s Chuck Hardy. Attendees at Make GSA Work For You heard about the organization’s construction program and received a rundown of upcoming opportunities to build.

The GSA’s capital program boasts over $12 billion in construction in the works as of November of 2008. The Great Lakes Region, in particular, is ripe with work, as $41.1 million in non-prospectus building work in 2008 made this area second among the regions in government projects, behind only Washington, D.C.

Robert Green of the GSA went over the procurement process, and what companies who haven’t done work for the government before need to do in order to be eligible. More information on the GSA’s presentation and upcoming opportunities can be found on the business section of the Builders Association’s website.

Getting Started With The GSA Over 300 contractors registered to bid on General Services Administration work in the Great Lakes Region alone during 2008, and despite the economic slowdown the GSA is one of few owners with no shortage of work. To bid, your company must go through registration steps at the following websites:

I S S U E

www.fedbizopps.gov www.ccr.gov https://orca.bpn.gov

Best Guess: Bad Times Ahead Numbers From ENR, FMI Indicate Significant Dip In Construction Economists assuming the best financial conditions for 2009 forecast a rather bleak market in Engineering News-Record. Tim Grogan and Steve Setzer report how a recession will rattle the construction market in 2009. These forecasts assume a Congress will pass a stimulus package early next year. Following this year’s 6.3% decline the U.S. Department of Commerce forecasts a 7.5% decline in total new construction put-in-place for 2009. FMI Corp. anticipates a decline of 7.4% in total construction work for next year. Engineering News-Record reports that a recession has already affected most of the slack in the housing market, it is just now starting to effect nonresidential building. Robert Murray, chief economist of McGraw-Hill Construction predicts nonresidential building is will fall in 2009 after a 4% gain in 2008. Murray concludes that, “every major construction market would fall into the negative column in 2009.” It is difficult for economists to come up with a forecast for 2009 because of the fast paced financial events that have taken place in 2008. The government has directed a huge amount of money to the credit markets and is in a hurry to implement a stimulus package early next year. Murray predicts that manufacturing work and electrical work will have the biggest swings in 2009. Murray expects electric utility work will fall in 2009 while alternativepower markets will continue to stay positive.

see FINANCIAL, page 18

North Central

Chicago Michael DeCaigny 312 527 7046 michael.decaigny@willis.com

140 120

+5%

2% Ͳ2%

WILLIS HRH DELIVERING INNOVATIVE INSURANCE AND RISK MANAGEMENT SOLUTIONS AND SERVICES TO THE CONSTRUCTION INDUSTRY

Ͳ3% Ͳ10%

100

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Lombard Gregory Field 630 324 2562 greg.field@willis.com www.willis.com

60 40 20 0 2005

2006

2007

2008

2009

Numbers are in billions. Annual Starts, courtesy McGraw-Hill Construction.

T H E

B U I L D E R

State Legislative News

Cullerton Takes Over As Senate President The Illinois Legislature hasn’t been in session a month yet, but there are already more twists and turns than an Agatha Christie novel. After dealing with the arrest and impeachment proceedings regarding Gov. Blagojevich, the Senate and House of Representatives are getting down to business…business that may include a revival of the Structural Work Act and other legislation that would impact construction. John J. Cullerton takes over for the retired Emil Jones Jr. as Senate President after being elected by his peers in January. A North side lawyer, Cullerton has been a state Senator since 1991 and served in the House of Representatives for 12 years before that. “(Cullerton) is a much more detailoriented type of guy,” said Builders Association lobbyist Jeff Glass of the Capitol Consulting Group. “It’s one of the reasons he was able to get the support he needed as quickly as he did. He’s a diligent worker and he’s very accessible. “(Cullerton) is very smart and he doesn’t carry any of the baggage with him that maybe people have had in the past. It’s a chance for something of a fresh start.” That ability to round up support, coupled with mild Democratic gains on election night, could mean legislative activity kicks into gear sooner rather than later in Springfield. “Things came together quickly, which is good for the Senate,” Glass said. “We’ll have to wait and see about the Structural Work Act and the businesses taxes that are being proposed, but he’s surrounded by people who have held leadership positions, so he’ll be able to hit the ground running.” Keep an eye on the Builder Blast weekly email for updates as the legislative session progresses. If you don’t receive Builder Blast and would like to, contact Andy Cole at acole@bldrs.org. To find out more about the Builders Association’s legislative activity, how we’re looking out for the interests of the construction industry and how you can help, call Mike Schultze at 847.318.8585.

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2008 Illinois House Race District

Incumbent

Challenger

Winner

17th

Beth Coulson (R)

Daniel Bliss (D)

Coulson (R)

43rd

Ruth Munson (R)

Keith Farnham (D)

Farnham (D)

46th

Dennis Reboletti (R)

Gary Nowak (D)

Reboletti (R)

48th

Michael Connelly (R)

Joe Heneghan (D)

Connelly (R)

53rd

Sid Mathias (R)

Carol Javens (D)

Mathias (R)

56thh

Paul Froehlich (R)

Anita ForteͲScott (D)

Froehlich (R)

65th

Rosemary Mulligan (R)

Aurora Austriace (D)

Mulligan (R)

66th

Christine Prochno (R)

Mark Walker (D)

Walker (D)

69th

Ron Wait (R)

Greg Tuite (D)

Wait (R)

81st

Renee Kosol (R)

Rich Kelly (D)

Kosol (R)

85th

Brent Hassert (R)

Emily KlunkͲMcCasey Klunk McCasey (D)

KlunkͲMcCasey Klunk McCasey (D)

92nd

Joan Krupa (R)

Jehan Gordon (D)

Gordon (D)

96th

Darlene Senger (R)

Diane McGuire (D)

Senger (R)

107th

Patti Hahn (D)

John Cavaletto (R)

Cavaletto (R)

112th

Jay Hoffman (D)

Dwight Kay (R)

Hoffman (D)

2008 Illinois Senate Race District

Incumbent

Challenger g

Winner

26th

Dan Duffy (R)

Bill Gentes (D)

Duffy (R)

27th

Matt Murphy (R)

Peter Gutzmer (D)

Murphy (R)

42nd

Linda Holmes (D)

Terri Ann Wintermute (R)

Holmes (D)

45th

Tim Bivins (R)

Marty Mulcahey (D)

Bivins (R)

59th

Gary Forby (D)

Ken Burzynski (R)

Forby (D)

I S S U E

Association Thanks Outgoing Directors At the Annual Meeting December 10 at The Drake Hotel, the Builders Association thanked outgoing Board of Directors members and welcomed new ones (more on Page 4). Pictured are J. David Pepper (left) of Pepper Companies, who served as the Association’s Chairman in 2009, and George W. Ferrell of Henry Bros., who had been on the BA Board since 2003. Also stepping away from the Board were Paul Hellermann of Bulley & Andrews, LLC (Board member since 1996), Sherwin Mirsky and John O’Malley of Case Foundation.

AGC News

Past Attendees: AGC Annual Convention Worth The Trip BY DAYNA SCHLARB The information will be as plentiful as the sunshine this March in San Diego, as the Associated General Contractors of America hosts its 90th Annual Convention and Constructor Expo, March 4-7. Workforce issues, the latest innovations in green building, opportunities for using Building Information Modeling and how the economy affects the construction industry now and in the future will be among the topics for speakers. All told, over 50 professional development sessions will highlight the activities this year, giving attendees valuable information to take back and improve their businesses. It never hurts to brush up on or learn something new about the always changing industry, and the Annual Convention makes it easy for attendees having so many informational seminars to choose from. While the economy may have a number of businesses cutting back on travel this year, Builders Association members have found trips to the AGC Convention as trips that actually produce results. “At the convention, I was able to see the vision behind the programs and PAC’s held by the AGC as they explain the advancements in the industry that have been done for our benefit,” said Lynn Treat, Director of Field Operations from Ryan Companies US, Inc. “One reason for me attending was to understand the new developments in the Supervisory Training Program.” Improving your company’s bottom line starts with Supervisory Training Program (STP) and Committee (STC). This program created by the AGC is specific to construction supervisors, which is developed, updated, and field tested by and for contractors. The proper decision making practices by supervisors about people, time, equipment, and materials will achieve a balanced and successful work environment. “As a member of the STC, the convention committee is helpful

“It’s a chance to learn the lastest initiatives in the field while bringing back that knowledge to share with our companies. The value certainly outweighs the cost.” -Paul Flentge Safety Director Pepper Construction Company

because it gives a lot of good ideas for how to improve the committee by non-committee members,” said Pepper Construction Safety Director Paul Flentge. During educational sessions, learn about adopting ConsensusDOCS and how they help to create a fair contract for all parties involved in a construction project. ConsensusDOCS are changing the industry and allowing for better project results and fewer disputes. Risk management professionals will speak about how BIM technology allows an entire history of a business’s records to be organized and condensed. Performers and personalities at this year’s event include Ambassador Nicholas Burns, newscaster Deborah Norville, Dr. Robert G. Ballard – best known for his 1985 discovery of the Titanic wreckage – former Major League pitcher Jim Palmer and country singer Phil Vassar. In conjunction with the convention, the Constructor Expo welcomes over 140 top equipment manufacturers and service providers. The vast showroom has something for everyone’s needs whether it’s labor or safety equipment, insurance solutions or specialized hardware, or contractor, subcontractor and manager specific information. At this, as with every other AGC Convention, one major draw will be the opportunity to network with industry leaders from coast-to-coast. “It is a wonderful time to network and socialize with national figures within the industry,” said Treat. “And there are great activities for spouses.” At the AGC Annual Convention, any attendee can expect to learn about new and old developments in the construction industry. Because the industry is continually changing with technological advancements, new contracts, green construction and much more, the working contractor, subcontractor, and project manager will find a trip to San Diego is just the ticket to maintaining businesses by making the right decisions for the future. “The AGC Annual Convention is a wise business investment,” Flentge said. “It’s a chance to learn the latest initiatives in the field while bringing back that knowledge to share with our companies. The value certainly outweighs the cost.”

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Contractor Safety Forum

Back-Saving Dialogue OSHA Expert’s Presentation Covers Proper Lifting Technique, Safety Measures BY CARYN GIZNIK While construction ergonomics sometimes isn’t first and foremost on the minds of those working on a construction site, OSHA’s Dana Root showed safety professionals why it should be. Safety professionals gathered at the last Builders Association Contractor Safety Forum of 2008 at the Chicagoland Construction Safety Council November 13. Bob Smith, chair of the Builders Association Safety Committee, welcomed Root, who presented the best practices to decrease jobsite injuries associated with lifting. With a background in physical therapy and a certificate in ergonomics, Root offered her expertise in a presentation centered on measures construction companies can take to prevent injuries, specifically those of the lower back. After coming to an agreement that most of the group has had a lower back injury or knows someone who has suffered from a lower back injury from working on the jobsite, Root offered a 101 on lower back anatomy and a quick tutorial on back muscles. “The most common injuries that occur on the jobsite are lower back and shoulder injuries,” she said. “The muscles in our back are connected from the base of our skull down to our lower back. As these long thin muscles contract discs are compressed at one end.” Root stressed it is important to keep your body out of a slouched/forward position when lifting, and decrease the horizontal distance between you and the object you are lifting. This will relieve pressure from your lower back. “You are ten times more likely to re-injure your back if you have had a previous lower back injury,” Root explained. She also offered tips on how to keep lower back injuries from occurring: • Do not lift anything below knuckle height. This causes you to bend over and your upper body weight puts pressure on your lower back, causing injury • Plan the worksite and organize tools so you do not have to bend below knuckle height • Decrease the horizontal distance between you and the object you are lifting “The further away an object is the more force on the lever arm,” said Root. She explained that the long muscles from the base of the skull to the lower back are not real strong to do lifting. Therefore, these muscles are longer when bent over and not as strong. A slouching position causes the muscles to elongate, causing pressure on the discs of the lower back which can cause injury.

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I S S U E

BY CARYN GIZNIK After listening to Dana Root’s presentation on ergonomics, attendees of the Builders Association Contractor Safety Forum shared their ideas about marketing safety to their employees. The group presented ideas on keeping safety a top priority for employees. Paul Howard of Frank H. Stowell started the discussion by explaining a commercial he had seen abroad that clearly sent the message that employees are more likely to listen to their families when it comes to being safe on the job.

see FAMILY, page 17

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

see TECHNIQUE, page 15

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Experts Agree: Safety Could Be ‘All In The Family’

Award Winners

Dr.Wayne Watson Community Builder Award Martin C.Umlauf Community Builder Award

Mark Johnson & Roger Price Seyfarth Shaw, LLP Corporate Citizenship Award

Before his duties as Builders Association Chairman were completed, Pepper Construction Company CEO J. David Pepper had to endure a barrage of flashbulb activity during the Annual Meeting December 10, 2008 at The Drake Hotel. Pepper presented a number of awards on behalf of the Builders Association, including Community Builder Awards to retiring City Colleges of Chicago Chancellor Dr. Wayne Watson and retired Regional Council of Carpenters President Marty Umlauf, the inaugural Corporate Citizenship Award to Seyfarth Shaw LLP and six member milestone honors.

John Sigalos Sigalos & Associates, Ltd.; 20 years

John Caraher Midwest Mechanical Construction, a KHB Group Company; 30 years

Joe Stubbs Opus North Corporation; 30 years

Jim Valenti Valenti Builders, Inc.; 20 years

Vivian Long BABCO Construction, Inc.; 40 years

Jeff Smith Ryan Companies US, Inc.; 10 years

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Annual Meeting

Chicago’s Olympic Dream, AGC’s Legislative Reality Ryan, Pruitt Offer Members Visions Of Future At Annual Meeting While it’s unlikely that any of those in attendance at the Builders Association’s Annual Meeting would claim to be psychic, they weren’t afraid to peer Wednesday evening into the future of the City of Chicago and the construction industry as a whole. Chicago’s bid for the 2016 Olympic Games, the year’s plan for the AGC of America and the direction of the industry were among the topics for discussion at the meeting. Over 150 representatives of industry firms took advantage of the opportunity to hear how the city’s bid for the games could impact their business sooner rather than later from Chicago 2016 CEO Patrick Ryan. The city will find out in October if it gets to host the games, and Ryan let the assembled contractors know what hosting might mean to them. “ We’re looking at literally billions of dollars worth of income that will flow

Annual Meeting Sponsors George Sollitt Construction Company (Gold Sponsor) Pepper Construction Company (Gold Sponsor) Bulley & Andrews, LLC (Silver Sponsor) Chicago Area LECET (Bronze Sponsor) Holland & Knight LLP (Bronze Sponsor) RSM McGladrey (Bronze Sponsor)

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into this city in the seven years before the games and the four years after,” Ryan said. Chicago’s plan calls for over ninety percent of athletes to be lodged less than 15 minutes from where they compete, which Ryan said was “unheard of” in Olympic circles. One advantage to Chicago winning the bid, he believes, is the chance to show that this is a world class city. “We’ve found in meeting with people from around the world that often, the perception of Chicago is far removed from the reality of what a great city this really is,” he said. The second featured speaker of the evening was J. Doug Pruitt, CEO of Sundt Construction in Arizona and Senior Vice President of the AGC of America. Pruitt, who will be installed as AGC’s President at its Annual Convention in March, spoke about the AGC’s priorities in the upcoming year and how member companies could help the AGC reach its goals. Attendees learned what to expect from a legislative standpoint from the Obama administration and how the AGC is working to continually promote the importance of infrastructure investment by Congress. Pruitt outlined the impact of the Employee Free Choice Act, a prounion bill expected to sail through a vote in the Senate early this term, and stated why he felt contractors and subcontractors should be opposed to the bill, as AGC is. The Association continued its tradition of awarding the Community Builder Award to individuals who have exhibited vision and leadership in moving the construction industry forward. The honorees this year were retired Chicago Regional Council of Carpenters President Martin C. Umlauf and City Colleges of Chicago Chancellor Dr. Wayne Watson. A Corporate Citizenship Award was instituted by the Association this year. The inaugural award went to Seyfarth Shaw LLP for its charitable contributions and pro-bono work. A number of companies celebrated milestone anniversaries with the

I S S U E

J. Doug Pruitt, CEO of Sundt Construction, at the Builders Association’s Annual Meeting. Pruitt will become the AGC of America’s President at the Annual Convention in San Diego in March.

Association, including: • BABCO Construction (40 years) • Midwest Mechanical Construction, A KHB Group Company (30 years) • Opus North Corporation (30 years) • Monson-Nicholas (25 years) • Adjustable Forms (20 years) • Ogletree Deakins Nash Smoak & Stewart (20 years) • Sigalos & Associates Ltd. (20 years) • Valenti Builders, Inc. (20 years) • Ryan Companies US, Inc. (10 years) In addition to receiving worthwhile information, those present were able to network with representatives of close to 50 companies and community and union leaders.

AGC News

Survey Says: Layoffs AGC Information Paints Disturbing Picture For Construction In 2009 BY BRIDGET FROELICH An AGC of America survey underscores the nation’s overall grim financial picture, as two-thirds of the nation’s non-residential construction companies are planning to cut their payrolls in 2009. Those companies predicted a 30 percent decline in the number of people working on projects next year, projecting a great economic slowdown and devastating job losses. Many construction companies experienced significant slowdowns beginning late last year, resulting in a 10 percent decline in the number of construction workers since 2006. “Unless the business climate changes significantly and soon, the construction sector will continue to experience the kind of devastating job losses and crippling declines in business activity that will undermine efforts to end the recession,” said AGC of America CEO Stephen Sandherr. Ninety-two percent of building contractors and 93 percent of road builders surveyed are expecting or experiencing declining activity. If planned investments in infrastructure by the government occur as part of a stimulus package, companies could either

Layoffs Anticipated In 2009 Numbers based on an AGC of America survey of contractors, conducted in late 2008

cancel their layoffs or add new employees, according to the AGC. For the last year, the AGC has aggressively lobbied congress extensively to draft a stimulus package that includes funds for building. The extra funding would allow for projects to be built and could prevent grim predictions from becoming reality. Visit the AGC’s website for more on the organization’s lobbying and legislative activity, information on the legislature and ways your company can help further the agenda of the construction industry.

Supplier Showcase The products and services offered by Builders Association Supplier members are among the best in their fields. With their association membership, these companies support the Chicagoland construction industry. Tim Schorn- Koroseal Midwest Properly protecting the interior walls at your job site can be an important part of construction, and the longevity of a building can often correspond to how much effort a building puts into researching those matierals. “You’ve got to put some research into how you’re protecting what you’re building,” Schorn said. “Whether it’s summer or winter shouldn’t matter, as long as your wall protection is climatized and it’s installed in the right environment. “It’s why I’m happy to be working for a service oriented company, because we can help a contractor along in that process. Selecting the right wall protection system can lengthen the life of a building.” Koroseal Midwest 9201 W. Belmont Avenue; Franklin Park, IL 60131 www.koroseal.com

Bulley & Andrews, LLC General Contractors Since 1891

www.bulley.com

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Member Milestones McShane Construction Corporation was selected for the second year in a row as the 2008 General Contractor of the Year by the Chicago Chapter of the National Association of Industrial and Office Properties (NAIOP). The company was nominated based on its involvement with the aloft Hotel in Bolingbrook; Mori Seiki U.S.A., Inc. headquarters in Hoffman Estates; and The Grove apartment complex in Downers Grove. Bulley & Andrews, LLC was the general contractor for the $12 million renovation of the Chicago Marriott Downtown Magnificent Mile. Renovations included an updated lobby with self check-in kiosks and a grand staircase linking the lobby to the second floor club lounge. The lobby bar, which was once small with minimal seating, was expanded to include an oversized bar, high top community tables and soft seating. The renovations were completed while the hotel was still fully operational. Joseph J. Duffy Company is the builder of the Salvation Army’s latest community center, located in Blue Island. The project consists of demolition of existing buildings, site redevelopment, a new 20,000-square foot precast gym and new offices. When finished, the new center and a renovated structure will include a community activity area, a seniors’ component and a new chapel. Valenti Builders Inc. has added two new project managers: Michael Cottick, previously Director of Construction Management with Matocha Associates; and Steve Truty. Henry Bros. Company recently completed its second green residence

hall for Saint Xavier University. O’Brien Hall was completed by Henry Bros. Co., making it the second green residence hall completed by the company on the campus of St. Xavier University. This was the fourth residence hall on the campus completed under the direction of HBC Superintendent Glenn Anderson. McShane Construction Corporation will provide design/build services under development by ASA Properties, LLC for the new 63,200 square foot Affinity Healthcare building in Buffalo Grove. Solar sun screens and a distinctive entrance will be featured elements of the new Affinity Healthcare building. The medical office will be home to a number of medical practice groups of Affinity Healthcare.

A rendering of the Salvation Army Center in Blue Island, being built by Joseph J. Duffy Company

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McShane Construction Corporation recently completed updates to athletic fields and facilities at Valparaiso University. McShane was present for Valparaiso’s Homecoming and dedication of the new tennis complex and renovation to the university’s Brown Field. The tennis complex update included the relocation and construction of 12 new tennis courts and outdoor facility. An upgrade to the football complex included a new eightlane polyurethane track for year round training, and a new synthetic all weather turf made of recyclable products. Henry Bros.Company has broken ground for an addition at the Miller Center Senior Living Community, Riverside Healthcare in Kankakee. The 34,000 square foot, 40unit facility is scheduled for completion early 2009. Henry Bros. Company is a full service general contractor/construction management firm. W.E. O’Neil Construction Company is working on Flair Tower Apartments and The Morgan at Loyola Station. Scheduled for completion in 2010, Flair Tower will feature 26 stories and 198 apartment units, 9,508 square feet of ground level retail and structured parking for 185. The Morgan at Loyola Station consists of residential apartments, retail space and a parking garage due for completion next year.

New Members Baxter & Woodman, Inc. 8678 Ridgefield Road; Crystal Lake, IL 60012 815.459.1260, www.baxterwoodman.com Contact: Craig Mitchell, Construction Services Group Leader Woodman, Inc. is a an Engineering News-Record Top 500 Design Firm. The company provides planning, design, construction and technology services related to water, wastewater, transportation and stormwater facilities for local governments, sanitary districts and state agencies throughout the Midwest. Environmental, geographic information systems, water and wastewater operations and advanced technology needs complement the firm’s civil engineering enterprise. Clients are served from 10 regional offices located in Madison and Burlington, Wisconsin and Crystal Lake, DeKalb, Itasca, Mokena, Plainfield and Rockford, Illinois. Berglund Construction 8410 South Chicago; Chicago, IL 60617 773.374.1000, www.berglundco.com Contact: Kevin Geshwender, CFO Berglund Construction is a third generation, family-owned firm and one of the Midwest’s leading construction companies with a reputation for successfully tackling the most challenging projects. Established in 1911, Berglund provides Construction

Management and General Construction services to healthcare, education, government, municipal, commercial and industrial clients. Capitalizing on the capabilities of our building and restoration divisions, Berglund delivers a comprehensive and costeffective suite of services tailored to our clients’ specific needs. As your single source of design and construction responsibility, we deliver strict, unified management and control over every phase of construction. CAL Communications, Inc. 1572 Barclay Blvd.; Buffalo Grove, IL 60089 847.537.2425, www.calcomm.com Contact: Carlos A. Lopez, President Communications, Inc. is a Hispanic minority contractor certified with the City of Chicago. Our specialty is the installation and maintenance of low and high voltage electrical wire. We design, engineer and install voice and data communications, fiber optic systems, cable, and wire using certified technicians. CAL technicians are trained to install and maintain a wide range of telecommunications equipment. They are also trained and certified by Northern Telecom to install central office switching equipment. Founded in 1987, CAL has grown from a small interconnect company to a well recognized and dependable communications/electrical contractor.

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Calendar Of Events February 24, 2009

February 12, 2009

7:30-10 a.m.; Doubletree Hotel, Oak Brook

Noon-2 p.m.; Chicagoland Construction Safety Council

Contractor Safety Forum

BIMForward: The Business Side of BIM and Integrated Project Delivery www.bldrs.org

Contact Mike Schultze at 847.318.8585 for more information

DePaul University Oâ€™Hare Campus 3166 S. River Road, Des Plaines

Susan Harwood Grant Training Seminar

8 a.m. - 12:30 p.m. For more information, visit http://convention.agc.org

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Deadline For Information Submission: 2009 Construction Salary Survey

May 5-6, 2009

March 4-7, 2009 San Diego, CA SEPT. 15-18 AGC of America Effective Time Management Program 90th Annual Convention

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February 25, 2009

Contact Kristin Garcia at 847.318.8585

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Labor News

Strikes 101 Explanations Of And Best Practices For Strikes On A Jobsite BY DENISE HERDRICH In the construction industry, a strike is the biggest advantage that labor has to force management to realize the severity of a particular issue. Management needs to be able to distinguish between several types of strikes in order to initiate the appropriate course of action. Types of Strikes The Primary Strike is a withdrawal of a single employer’s workers who seek a direct and immediate benefit. These strikes usually occur after the collective bargaining agreement has expired and it puts pressure on the employer to agree to union demands for a new labor contract. The Secondary Strike or Secondary Boycott involves a withdrawal of another employer’s workers who exert pressure on their own employer with the expectation that the employer will, in turn, use force on a separate employer with whom the union has a dispute. A Secondary strike is illegal. The Sympathy Strike is for the direct benefit of another union. If the strikers only gain an incidental benefit from this action, the sympathy strike is not considered secondary in nature. Management should be aware that general no-strike provisions in labor contracts do not necessarily prohibit sympathy strikes. The General Strike is identified by the cessation of workers of a particular trade or industry to place pressure on management. Such strikes usually occur because of impasses during collective bargaining. The Whipsaw Strike is a job action taken against some yet not all employers involved in negotiations forcing these companies to bow to union demands. Such strikes are common in multiemployer bargaining situations, such as the construction industry. They are usually

prevalent during collective bargaining impasses. The Jurisdictional Strike involves two unions or a group of employees that claim the same work. A Jurisdictional strike is illegal. The Wildcat Strike occurs when employees strike without the consent of their union, which are in breach of the nostrike provision of the collective bargaining agreement. The National Labor Relations Board (NLRB) views the preceding strikes in three separate categories. These categories are: • The Economic Strike occurs in disputes over wages, hours and work conditions • The Unfair Labor Practice Strike is a result of alleged violations of the National Labor Relations Act (NLRA) by an employer • The Unprotected Activity Strike takes place when a union is in violation of its no-strike clause agreed upon in the collective bargaining contract or engages in actions against their employer, which are prohibited by the NLRA What do you do when pickets appear on your job? Strikes can have a variety of causes: economic, jurisdictional, organizational or on the expiration of a collective bargaining agreement. When pickets appear on the job, management should take specific actions no matter the reason for the strike. • Determine which union or unions are picketing • Record verbatim the writing on the picket sign and get copies of any handbills being distributed

Answers To Your Labor Questions This is the second in a series of best practices articles written by the Builders Association’s Director of Labor, Denise Herdrich. The Builders Association is one of the few in Chicagoland with a full-time Director of Labor. For best practices in the case of a jurisidictional dispute, see The Builder’s online archives. See future issues for information on strikes and grievances. Questions about labor should be directed to Denise at 847.318.8585. • Document all conversations and have a witness with you to verify anything that is said or transpires • Keep a chronological record of everything that occurs • Obtain the name(s) of union officials in charge • Ask the union representatives present what they want. Write their statements down, read them back to the union representative, and be sure he or she agrees • Ask the union representative for the contract provision that covers what is wanted, write it down, and be sure he or she agrees with what is written • Using a map or site plan, record the exact location and number of the pickets • Take photographs or videotape is suggested if there is any interference with access to or from the site, or if any violence or intimidation occurs. Record verbatim any threats, coercions, or other comments made by the union personnel including the time and place • Alert local police because strikes or picketing can lead to violence. Report this information to your labor relations attorney to employ the proper course of action

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FAMILY, from page 9

TECHNIQUE, from page 9 Construction companies and owners can take specific preventive measures to reduce the risk of onsite injuries. Engineering control options include: • Modify and redesign the worksite • Change or limit the weight of the object being lifted • Do not twist while lifting the object • Reduce the amount of exposure Root also urged workers to think outside of the box and ask “can this be done a different way?” Pushing, sliding or pulling the object that needs to be lifted are some options. There are a number of changes that can be made through administrative control. Root suggested owners adjust work schedules and rotate workers so employees are not over exerting the muscles of their lower back. She also urged owners to cross train workers to do several jobs, adjust the work space and alternate heavy tasks with light tasks.Workers should increase the variety of tasks that are done on the jobsite, which will allow rest time for muscles. Shane Deaton of Henry Bros. Company noted concern for his employees, asking Root if it was better to eliminate the amount of weight lifted with more repetition or less repetition with a higher weight. Root explained that her concern leans more toward the horizontal distance between the object and the person. A lighter object will provide less of a horizontal distance and therefore will be better for preventing injury. Nancy Hauter, OSHA Compliance Assistant Specialist, wondered who would be protected from injury if two people are lifting an object. By asking participants to stand, Root explained that using two people to lift a load may not protect one from being hurt. People of different heights and weights mean they will lift differently. She provided the group with other options to arrange a different set up and to plan ahead. Although Root explained she does not have all the answers to ending lower back injuries, she can provide people with the correct information to enlighten construction companies to change bad habits.

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Safety Committee Chair Bob Smith of The Levy Company strongly agreed that safety is 24 hours a day, not something that only occurs on the jobsite. Smith also congratulated Pepper Construction Company for its poster contest available to the children of workers to draw safety posters. Smith noted this was a “brilliant way to get the family invested in safety.” Leaning toward the types of regulations and steps companies can take to force employees to be safe, Bob Smith provided an example from The Levy Company. In 2000 a man on the jobsite went blind because he was not wearing his safety glasses. Today The Levy Company enforces that hard hats and safety glasses must be worn on the jobsite, if not that employee will not work that day and can be suspended. “You must be willing to take a couple of hits to get your message across,” Smith explained to the group. Paul Flentge of Pepper Construction wondered how to sell the message of safety to employees. Bob Smith suggested, instead of giving a jacket or t-shirt to an employee who practices safety on the jobsite, that the company give a gift certificate to dinner for the whole family. Smith also mentioned the possibility of a family seminar or safety day. “The family needs to be involved when enforcing jobsite safety,” Smith said.

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“People need to understand the severity. Construction is consistently one of the top 10 most dangerous jobs.” Nancy Hauter, OSHA Compliance Assistant Specialist educated the crowd with the staggering statistic that there were over 5,400 construction related fatalities in 2007. “The tools to market safety need to be changed to grab people’s attention,” Hauter said. There is never enough the construction industry can do in order to promote safety, Flentge insists. “The industry is getting better, it is changing, it is an evolving process.” Attendees also wondered how the current economic climate will affect employees and a safe job site. Will someone not voice an unsafe site in fear of losing his or her job? Agreeing that there can never be enough ways to market safety to employees, Luke Lukowicz of W.B. Olson, Inc. said that his workers are grateful for W.B. Olson’s required physical capability test. For example, five employees were tested and three were diagnosed with high blood pressure. All three were unaware and immediately sought out physicians. Although the cost for the test comes out to a day of pay, Luckowicz sees no push back. Workers appreciate the test so they know what they are capable of accomplishing.

A plane rests under J.A. Air’s brand new canopy at the Aurora Municipal Airport.

RYAN, from page 1 anything in the existing facility was and what we had to watch out for. The guys working on the site pretty much had to start from scratch and they did a great job adapting.” Construction took just seven months, with completion of the project coming just after Thanksgiving in 2008. In addition to remaking the 43,000square foot hangar, Ryan Companies constructed a lounge where customers can watch through an angled glass curtain while their private plane pulls up under a 17,500-square foot canopy. The space includes offices, a café and a pilot’s lounge. “The deadline was tight and it’s a pretty large airplane canopy, but things came together pretty quick,” said Mark Sheets, a Project Manager with Ryan’s Quad Cities office. “We had to keep an eye on the debris and get it cleaned up at quickly as we could. That’s always important, but it was more important here because you don’t want an object blowing on to the tarmac.” J.A. Air provides services including aircraft sales and detailing and flight instruction, operating out of the Aurora Municipal Airport in Sugar Grove. Needs of the client also included a series of above ground fuel tanks. The facility will be used by those flying corporate jets in and out of the area. A look at Ryan Companies website displays the number of different projects and delivery methods that the company specializes in. With the quick changes, tight time schedule and diverse needs of

the J.A. Air project taken into account, Higgins believes experience at a number of different projects helped his team perform at a high level. “The versatility that Ryan has as a company was instrumental in being able to get this job done,” Higgins said. “We needed to shift gears and we had the right manpower to do that. “We have a portfolio here that shows our experience doing all kinds of different projects, and because of that I think we might have been set up to handle the changes at the airport a little better than some other general contractors.” Working in and around the airport required permits from the Federal Aviation Administration before work began and specialized training for some workers. Sheets is proud of the finished product that the extra effort helped create. “It definitely worked out for all the parties involved,” Sheets said. “For us, it’s a building we can use as a showpiece that we finished on a really high level. We’re adding to our aviation portfolio and this project is a great example of the kind of quality work we can do in that area.”

FINANCIAL, from page 6 There is still a positive outlook for green building. The U.S. Department of Commerce Construction Put-in-Place forecasts a 25% drop in commercial construction, and 12% drop in residential. Although there was a 40% rise in manufacturing construction in 2008 from 2007, The U.S. Department of Commerce predicts there will be a 4% decline in 2009 and few new starts. The department’s forecasts are based on the hopes that Congress passes a stimulus package early next year. Projects that rely on bond financing are being put on the back burner. From the East to the West coast projects are being delayed due to the state’s inability to issue new bonds. FMI: Construction Putin-Place predicts there will be a 12.5% decline in total nonresidential building. The construction market is heavily reliant on accessing credit for future projects and bond financing for school, road and community building projects. As there continues to be a delay in financing the construction market will continue to decline.

Breaking ground on a project? Working on a project you think would make a good feature? Promotions or awards? The Builders Association wants to know about it! Send information for Member Milestones and other ideas to: acole@bldrs.org

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Employee Benefits Your employees can receive a variety of benefits as part of your membership in the Builders Association and the AGC of America. Products and services at member discounts give you the competitive advantage over your competition and save you money.

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Employee discount at 18%, discounted plans, and FREE phones like the Motorola V750 with Push to Talk, plus a variety of other discounts and deals on Verizon Cell phones and plans.

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Add your project experience to our website via Ascribe, which ‘virtually’ showcases your work and drives qualified traffic back to your website.

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Discounts on fleet operations, vehicle pricing, flexible vehicle funding, vehicle maintenance programs, a fuel program, and a disposal program.

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Special offers on all Dell desktops, notebooks, servers and storage devices, plus member discounts on software and peripheral products such as printers, monitors, cameras, handhelds, LCD & plasma TVs, projectors and digital music players.

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Member discounts and Hertz’s “come and get you” service.

“Membership gives you the competitive advantage.”

To find out more, contact Kristin Garcia at 847.318.8586 or visit www.bldrs.org

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The

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

Builders Association 9550 W. Higgins Rd., Suite 380 Rosemont, IL 60018 (847) 318-8585 www.bldrs.org

2009 Board of Directors Chairman John Russell W.E. Oâ€™Neil Construction Company

Vice Chairman R. Lynn Treat Ryan Companies US, Inc.

Treasurer Howard Strong The George Sollitt Construction Company

Immediate Past Chairman J. David Pepper Pepper Companies

Builders Association Staff Have a construction-related problem or question? You may find it helpful to speak directly to the individual who has primary responsibility for a particular area. Al Leitschuh, President Industry Relations, Strategic Planning Mike Schultze, Vice President Government Relations, Labor Relations, Builders Foundation

Benjamin Johnston James McHugh Construction Company

Denise Herdrich, Director of Labor Relations Labor Issues, Membership Recruitment

Leon LaJeunesse Custom Contracting, Ltd.

Kristin Garcia, Client Services Manager Education, Safety, Membership Retention

Michael Mozal Joseph J. Duffy Company, Inc.

Andy Cole, Communications Manager

Mark Rowland ISEC, Inc. Greg Scurto Scurto Cement Construction, Ltd.

Stacey Kelly, Project Coordinator Meeting Logistics, Builders Foundation Davina Ware, Administrative Coordinator Office Management Tim McPhillips, Accounting Bridget Froelich, Communications Intern