Starcon March Newsletter

a CIANBRO company

MARCH 2011 NEWSLETTER

STARCON Rolls Out Strategic Plan: A Roadmap to the Future

In January of 2011, Starcon leadership began working on a Strategic Plan with the Cianbro leadership team to build a foundation for the future. The Plan’s objective was to optimize our Safety Programs, take care of our people, ensure customer satisfaction, and build financial stability. We performed a SWOT analysis (Strengths, Weakness, Opportunities and Threats) across each department and business region. The Primary Markets were defined as refining and petrochemical. Secondary Markets were determined to be natural gas, food and beverage, industrial gas, terminals, and off shore platform exchanger work.

In 2011, we will focus on building a stronger organizational structure and stabilizing our business foundation across infrastructure. We will focus on systems, process, and provide improved execution and predictability across our business regions. Our training programs at the management level and craft levels will be reinstated to build bench strength and capacity. Our focus will increase on recruiting staff and craft to prepare for the growth in the Midwest, Tri-state, and West Coast areas. The Starcon brand is strong and we will continue to build upon this brand

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with the support of Cianbro.

In order to prepare for future growth, we will realign our Operational Regions to three Main Areas: Western, Northern and Southern Regions. Gary French will lead the Western Region, Reggie Williams will lead the Northern Region and Mark Bortka will lead the Southern Region.

A Business Development Cross Selling strategy with Cianbro will be implemented, outlining our joint capabilities to our key refining and engineering customers, with a focus on modular construction and capital project work.

Dale Kuntz presented the Strategic Plan to the corporate and regional offices on February 14, 2011. All Vice Presidents and Directors will be communicating the finer details of the Strategic Plan to their respective organizations in the weeks to come.

For more details on the Starcon Strategic Plan, refer to the Starcon Intranet Site.

Marathon Canton

By Chuck Hester In preparation for the 2011 turnaround, a Starcon team assembled and set a 31,000 pound bridge that will allow all personnel to cross the railroad tracks safely while entering the refinery from the lunch tents and office areas. This will allow safe access to and from the refinery without affecting the train schedules that utilize this track. Nearby power lines were locked out, tagged out of service and verified prior to the lift being conducted safely and successfully.

Starcon team members carefully guided the bridge in place and lined up the connection points on each end. The bridge sat in a saddle connection on each of the side columns -- no bolting required. During the turnaround phase, all 1,600 workers will be required to cross this bridge at the start of shifts, on breaks, during routine visits to the worksites, and at the end of shifts.

Once completed, the bridge will be covered in a wire safety mesh to prevent anyone from falling.

Also, a set of stairs constructed of scaffolding will be installed at each end.

STARCON / MARCH 2011

PRESIDENT’S MESSAGE

The economic downturn in the refining and petrochemical industries over the last two years has presented major challenges for our customers and for Starcon. Due to these challenging times, we found ourselves in a very difficult financial situation. Many people were asked to make sacrifices in order to keep the company moving forward.

In November 2010, Cianbro acquired Starcon. Both companies had been working together in an alliance relationship for 12 months prior to the acquisition. This acquisition will present tremendous opportunities for both companies, their team members, and the customers that we serve together.

Many of you have been able to interact with the Cianbro team. Continual interaction to date has been a very positive experience for both Starcon and Cianbro. We are a much stronger company today, financially sound and positioned to build a solid foundation in 2011.

We have many positive activities going on across the company. In November and December of 2010, our safety performance, quality performance, insurances, health care, and financial performance all exceeded our expectations. Our Maintenance nested sites continue to grow and we

are expanding our opportunities in the Midwest (Illinois, Indiana, Ohio) and Tri-state areas (Kentucky/West Virginia). We have some new opportunities for new nested Maintenance sites on the West Coast that we are currently pursuing. Our first quarter of 2011 turnaround business is very strong in the Midwest, Gulf Coast and West Coast. In January of 2011, we met our net profit goals and expect to see this same type of performance in February and March.

Our continuing education program has been reinstated, offering qualified team members the opportunity to further enhance their skills and knowledge so they can continue to grow with the company. The company goal is a 2% match this year for the 401K program. We will continue to build our organizational structure and focus on building key leadership positions across the organization. Recently, we have hired a new Business Development Director, Michael Golla, HSE Director Mike Duncan and Cost Control Director Paul Fischer. They are currently getting their feet on the ground and we expect a very positive contribution from their efforts in the near future. Frontline Leadership, Leadership Development, Management Development, Craft

Dale Kuntz

Training and Certification are back on track. You will be hearing more about how we plan to launch these programs from our HR department in the first quarter of 2011.

Our key areas in 2011 will be centered on Improving our Safety, Taking Care of Our People, Satisfying Our Customers and Building Financial Stability. Starcon will work closely with the Cianbro organization, building upon our organizational structure, infrastructure, and key work processes across departments to build a stronger foundation for the future.

Your loyalty, hard work, dedication, and can-do attitude are greatly appreciated. Let’s continue to build a company in which we can all be proud.

Dale

Two STARCON TMs Earn Master’s Degrees

By Bud Hatteberg Life can be very busy; between work and raising a family it seems you are always on the go. If you add into the mix going to school at night you find out just how critical time management is. Starcon Team Members Tim Cogan and Daren Kuntz know this process first hand. Tim has been employed with Starcon since April 2006 and is a Programmer/Analyst in the Manhattan – IT Department. Daren has been with Starcon since May 2007 and is our Corporate Risk Manager.

Over the last two years, Tim and Daren have been attending Olivet Nazarene University and in January reached their goal of obtaining their Master’s Degree in Business Administration. Starcon is proud of their accomplishment and the contributions they make to the Company. Congratulations to both team members for their M.B.A.!

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STARCON / MARCH 2011

Valero Benicia Refinery: Replacement of South Flare Stack

By Misha Kennedy Phase one of this project was performed on a lump sum contract basis within a 2.5 month period, with approximately 15 team members. The work involved the construction of a 48 inch diameter stack, 350 feet long with associated 3, 4, 6, and 8 inch steam lines, 16 inch acid flare line, 8 pilot gas lines, platforms, ladder and main flare and acid flare tips. The work also involved the fabrication of a redesigned 36 inch flare drum and 16

inch acid flare piping, along with newly designed structural supports. The work was performed under stringent quality control guidelines.

The second phase which was performed during the turnaround event involved the removal of the existing stack and the erection of the new stack. Maxim Crane Company was chosen by Valero and provided a Manitowoc 18000 / 600 ton crane with 200 feet of main boom and 195 feet Luffing Jib. Another Manitowoc 2250 PAGE 3

was used to hoist the man basket with Starcon personnel to perform various tasks to prepare the stack for disassembly. The work included lead abatement, insulation removal, support of existing stack piping and the cutting and removal of the existing stack in five sections.

Starcon's civil crew also constructed the two large crane pads to support the cranes and installed the new foundations for support of the re-designed

flare and drum piping. The new stack was set on January 22nd followed by the installation of all associated steam, fuel gas, drum and flare piping at grade. The project was completed within the allotted time without a first aid or safety incident.

STARCON / MARCH 2011

WELCOME Director of Business Development and Marketing: Michael Golla STARCON WELCOMES

Michael Golla has joined Starcon as Director of Business Development and Marketing. He holds a bachelor’s degree in mechanical engineering from West Virginia University, and an MBA from the University of Tulsa.

Michael has worked for RSC Equipment Rental for the past four years, primarily as a District Manager and as Director of National Accounts, based in La Porte.

Prior to RSC, he worked 17 years for Praxair in technical sales, strategic marketing, product management, and general management positions in Louisiana, Oklahoma, Connecticut, Wisconsin, and Texas. He also worked as Director of Business Development for TD Williamson, and as VP of Sales and Marketing for Furmanite America.

Michael will help Starcon develop a new marketing strategy and gain new business from target customers.

Michael and his family live in the Clear Lake area, near the La Porte office, where he will be based, reporting to Dale Kuntz.

Benefits Administrator: Jennifer Blaszczyk

STARCON WELCOMES

Jennifer Blaszczyk joined the Human Resources team on November 29, 2010, as the Benefits Administrator in the Manhattan office. Jen has a Bachelor of Arts degree in Industrial/Organizational Psychology from Saint Xavier University in Chicago, Illinois. She comes to Starcon with more than nine years of experience in the Human Resources world, with a focus in benefits and payroll. So, if you have a question about your Starcon benefits, feel free to contact her!

Jen just got married in July of 2010. Her husband, Ace, deployed to Iraq with the Army in January of 2011. Ace is a sergeant and a medic with the 709th ASMC (Area Support Medical Company) of the Illinois Army National Guard. He is expected to return home near the 2011 holidays. In her free time, Jen volunteers for the Family Readiness Group which supports the family members of the soldiers who deployed with her husband. She also loves to bake and cook, and is currently learning to knit.

Director of Health, Safety, and Environmental: Mike Duncan STARCON WELCOMES

Mike Duncan joined the Starcon Team on February 7th, 2011, as Director of Health, Safety and Environmental. Mike brings 20 plus years of experience in developing safety cultures and programs within various industries. He was most recently employed by BST, Behavioral Science Technology, Inc., as a Principal Consultant / Project Manager. Mike and his family are from Humble, Texas, and he will work from Starcon's LaPorte office.

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STARCON / MARCH 2011

WELCOME Director of Cost Control: Paul Fischer

STARCON WELCOMES

Paul is responsible for all project accounting, financial reporting, business management and project internal controls for Starcon International Inc. Paul will be located out of our La Porte, Texas office. Prior to joining Starcon, Paul held various senior financial leadership positions within Raytheon and successor aircraft related businesses.

Fischer received his Bachelor of Science in Business Administration, Commerce and Finance from St. Louis University in 1975. He has completed Executive Program work at the University of Arizona – Karl Eller School of Management. Paul passed the CPA exam in the state of Arizona.

Starcon extends special thanks to Joanne Choate, who did a great job as Acting Director of Cost Control for the last several months. Joanne traveled across the country to establish a solid foundation and business partner relationship for the Starcon Regional Cost Control Managers, while maintaining her responsibilities as business manager for Cianbro's Southern New England Region.

HSE and Craft Training Align for National Certification in Rigging

By Tom Wanamaker In a collaborative effort with Michael Caughey, Rich Jones, Liberty Mutual and Corporate Training, Starcon has obtained National Certification through the National Center for Construction Education and Research (NCCER) in Rigging Fundamentals (Level 2) and Rigging (Level 3).

The stringent standards to become a Starcon Level 2 Rigger and Rigging Competent Person (RCP) aligned nicely PAGE 5

with the NCCER requirements for Rigging Fundamentals and Rigger. In order to make this happen, competent rigging instructors were certified as craft instructors and performance evaluators through the NCCER Instructor Certification Training Program (ICTP) by the corporate master trainers.

Team Members who attend the STARCON Level 2 Rigger training now have an NCCER performance verification at the end of training. Those that pass the

hands-on evaluation receive a card and certificate from the NCCER. Those that go on to take the NCCER computerbased assessment test receive the gold standard Certified Plus in Rigging Fundamentals. Those who successfully pass the RCP course receive recognition as NCCER Riggers.

Since the inception of the program, Starcon has trained and certified more than 80 Team Members in Rigging.

STARCON / MARCH 2011

SAFETY STARCON ABC National Safety Excellence Award

By Mike Duncan The Excellence in Construction Awards celebration honors the nation's most innovative and high quality construction projects and safety programs. On February 22nd, representatives from Starcon attended the ABC National Safety Excellence Award in Orlando, Florida to receive this most prestigious recognition.

Pictured here is Reggie Williams, Vice President North and Mark Bortka, Executive Vice President South accepting the award on behalf of all the team members within Starcon. This is a highly sought-after award that is a tribute to the continued dedication to safety by all of Starcon.

"This is a significant accomplishment and all of our team members at Starcon should be proud to receive this industry safety recognition for being the best of the best in 2010,” said Starcon President Dale Kuntz. “Let’s continue to carry this into 2011 as we strive for zero incidents at Starcon.”

Congratulations to all team members!

Safety Achievements at ExxonMobil Joliet

By Jonathan Jones

A Safety Idea

By Rhonda Bouchard Mike Osburn is Starcon's project manager at the Citgo Refinery in Lemont, Illinois. He wanted to come up with a great idea to motivate our team members to keep safety on their minds at all times.

What he came up with is shown here: a Picture Board. It's a collage of photographs showing our families, loved ones, and the things that are important to us. These photos represent all of the “reasons” that we want to remember to work safely.

It’s not often in our business that we can celebrate going six years without an OHSA Recordable Injury. But that is exactly what our fellow team members at the ExxonMobil Joliet, Illinois jobsite did. We all know the demands placed on us by our clients. But when you are the “go to” contractor for the tough jobs, it makes an accomplishment like this one even more significant. ExxonMobil is the home to several long term Starcon team members and the performance, knowledge, and accountability they bring to their jobs everyday are among the many reasons for this success.

Between November 1, 2004 and

December 31, 2010, the ExxonMobil Joliet, Illinois site has worked 343,095 safe work hours. Their last recordable injury was during turnaround work on October 24, 2004 and their last first aid was October 22, 2009!

“I am very proud of what we have going on here, and we work hard everyday to keep it going," said Site Manager Ben Thayer. "It takes a lot of focus and constant communication about what we do here, day in and day out, to keep making this happen.

We work very hard at planning our work in advance and making sure everyone is on the same page before we start the job and while the job takes place.”

The board is located by the entrance door, which all team members pass when congregating for our daily safety meeting.

It serves as a daily reminder for each of us as to what our reasons are for staying safe!

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STARCON / MARCH 2011

STARCON Selects Representatives for the ABC Craft Olympics

By Tom Wanamaker

The Associated Builders and Contractors (ABC) Craft Olympics are held annually at the ABC National Convention. Trades people from across the country in thirteen different crafts compete for medals, cash, tools, recognition, and pride. The competition includes both a written examination and a hands-on proficiency test. Starcon has won several medals and gained recognition as a true competitor.

In preparation for the national competition, our Canton Marathon site hosted a regional craft competition on February 18th to determine who would represent Starcon in Pipefitting and Insulation. Canton was selected as the host site because of its central proximity to the competitors and because it had the facilities to accommodate the training event. In order to compete, team members must be an apprentice and be enrolled in a training program or have less than six months as a journey level from the time of competition.

The four team members represented the best from their respective training units and the competition was very close. In Pipefitting, Terry Bagshaw (3rd year apprentice) competed from Canton, Ohio while Brendon Fort (second year apprentice) participated from Morris, Illinois. In Insulation, Cody McComb competed from Canton, Ohio and Jackie Cavender from South Charleston, West Virginia.

The level of quality and attention to detail was very impressive. The candidate scoring consisted of a written

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Left to right: Adam Bechtol, Jeff Wallace, Tom Wanamaker, Jackie Cavender, Terry Bagshaw, Rick Morgan, Cody McComb, Brendon Fort and Kelly Sexton.

assessment test and a hands-on performance test. It was an intense, fullday of competition and came down to very small details in craftsmanship which might have been overlooked elsewhere. Performing in front of judges with pictures being taken added to the intensity.

Jerry Kennard, Major Projects Senior Project Manager, and Kelly Sexton, Master Trainer, were the judges. Rick Morgan, Pipefitter Instructor, and Adam Bechtol, Insulation Instructor, were the Project Mangers. The whole event was coordinated by Terry Johns, the Construction Site Safety Master Trainer at Canton Marathon. Jeff Wallace, Welding Instructor, assisted by providing the tack welds for the pipefitter competitors. His beginning

weld class created the mock ups for the competition.

Terry Bagshaw, Cody McComb and Zach MacClure (Pipe Welding) will represent Starcon at the national competition in San Antonio, Texas on April 12th through the 14th.

Congratulations to all the contestants for a job well done. Each represented their training units with pride and quality craftsmanship.

STARCON / MARCH 2011

That’s a Stretch

By Jeff Skummer

Starcon is starting to stretch into Cianbro’s health and wellness program. Recently, the Manhattan office has begun doing the Cianbro stretch program. The program is a series of 12 simple stretches designed to help the following physical conditions: • Relax your mind and “tune up” your body • Increase flexibility and improve range of motion for joints • Prevent injury during work and daily activities • Develop body awareness • Promote circulation • Relieve tension and stress

STARCON and CIANBRO at Purdue University

All Starcon office and jobsite locations are encouraged to start the stretch program. The 12 stretches take no more than 10 minutes and have these added benefits: • Increase team morale • Promote team camaraderie • Provide a starting location for safety meetings or distributing information to the team.

By Troy Copeland On February 11, 2011, Starcon Recruiter Troy Copeland met Cianbro Recruiter Kaleb Roy at Purdue University where the pair conducted a joint recruiting effort at the university’s Building Construction Management career fair. The two recruiters were also joined by Ben Thayer of Starcon. Ben is currently the Project Manager for Starcon’s Exxon Mobile maintenance site and is an alumnus of Purdue. The university offers one of the top rated Building Construction Management programs in the United States, and Starcon has had great success with Purdue's students.

Troy and Kaleb were recruiting for the Management Development Programs of each company. These students immerse themselves in the many aspects of the industry, such as organizing, leading, and managing people, materials, and processes. They range from freshmen to graduating seniors and make great candidates for permanent and intern positions. Both recruiters had a very successful recruiting trip and plan to present at more schools together in the future.

All of our jobs involve long hours each day of repetitive motion. Without proper stretching you could be putting yourself at risk. You do not have to be out at the jobsite to suffer a work related injury. It can be as simple as sitting at your desk. The longer that you sit or stand without any breaks or stretches, you are putting yourself at greater risk of developing stiffness, neck, arm, wrist, hand, back or leg strain.

Starcon encourages all offices and jobsites to start the stretching program. You can access a PowerPoint presentation and jobsite poster of all the stretches at the Starcon intranet site: http://owa.starcon.org/HealthandWellness/HealthandWellness.htm

NEW ARRIVAL West Coast Project Manager John Colvin is welcoming a new addition to his family. Granddaughter Eleanor “Elly” May Colvin was born February 15, 2011. She weighed in at seven pounds, eight ounces. She was born to proud parents Rhoni & John Colvin Jr.

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STARCON / MARCH 2011

CIANBRO and STARCON Conduct Leadership Development Program in Portland, Maine

By Jeff Skummer and Tom Wanamaker

Starcon and Cianbro are always looking to develop the next generation of leaders. The Leadership Development Program Initiative is a great example of Team Member Growth and Development. Select Starcon team members had the privilege of attending Cianbro’s Leadership Development Program January 25-27th. The Starcon-invited team members were Uli Quiroga, Lewie Strange, Ben Thayer, Matt Uremovich and Jeff Skummer. The Cianbro LDP focuses on the following leadership topics: • Better understanding of what it means to lead • Self awareness and personal plan for growth • Interpersonal skills to work collaboratively with diverse people to accomplish goals • Relationship Building and influential leadership • Team building, performance results, group roles

important leadership moments in his life and reflected on those who helped shape him along the way.

The three-day session was jam packed with star presenters from Cianbro: Alan Burton - Vice President, Kellie Guarino OD Manager, and Dr. George Manning of Northern Kentucky University, as well as executive sponsors Earl Cianchette, Joe Cote, Andi Vigue, and Mike Bennett. The team formed and grew together very rapidly, sharing ideas and experiences.

The event ended with sharing the Cianbro and Starcon history.

Each participant has a stretch project to complete during the 12 weeks before the two-day closing session in April. The team meets regularly to update the project status. The team will present and report the results of their projects at the closing session.

Some of the projects will be featured in upcoming newsletters.

It is not unusual for a project to become something that is implemented throughout the organization or become part of our best practices.

• Implementing change and managing conflict

STARCON

• Ethics and organizational climate

STARCON EDITOR - Julie Swanson

• Better understanding of the company, our markets and economic trends

CIANBRO EDITOR - Alan Grover

The three day kick-off event held in Portland, Maine was comprised of Starcon team members and 20 Cianbro team members. Participants came from different business units and job skills within the Cianbro Companies. Cianbro Chairman and CEO Peter Vigue kicked off the event with a discussion of PAGE 9

CONTRIBUTING WRITERS - Rhonda Bouchard, Troy Copeland, Mike Duncan, Bud Hatteberg, Chuck Hester, Jonathan Jones, Misha Kennedy, Jeff Skummer, Tom Wanamaker DESIGN - Jean Cousins Do you have questions or comments about the Newsletter?

If so, we'd appreciate hearing from you! Please email jswanson@starcon.org or agrover@cianbro.com.

STARCON / MARCH 2011