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VOL. 57 ISSUE 04 APRIL 2016 • GUAM CONTRACTORSʼ ASSOCIATION

Black’s Saga Continues


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TABLE OF CONTENTS

6

CONSTRUCTION NEWS BULLETIN

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14

S.A.M.E.

10

INSIDER NEWS

14

FEATURE STORY

18

TRADE FAIR INFO

20

FEATURE STORY

26

PHOTO HIGHLIGHTS

28

CONSTRUCTION HEADLINE

30

CRANE CRITIQUE

34

REPORTS/INFORMATION

Feature Story

20 Feature Story

Chamorro Ph rase Of Th e M o n th Fino Chamorro: English:

2 | APRIL2016

M책olek Bid책-mu Good Job www.guamcontractors.org


EDITORIALS

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THEDIRECTORS

THEEDITORIALS

THETEAM

PRESIDENT James A. Martinez Guam Constractors Association

Guam Contractor’s Association (GCA) in conjunction with Adztech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA.

PUBLISHER: James Martinez

PAST CHAIRMAN Art Chan Hawaiian Rock Products CHAIRMAN John Sage WATTS Constructors VICE CHAIRMAN William Beery Tutujan Hill Group SECRETARY/TREASURER Conchita Bathan Core Tech International CONTRACTORS DIRECTORS: Carlo Leon Guerrero M80s Office Systems Mark Mamczarz Black Construction Corp Miguel Rangel Maeda Pacific Corporation John Robertson AmOrient Contracting Rick Brown Pernix Guam LLC ASSOCIATE DIRECTORS: Jeffrey Larson TakeCare Asia Pacific Paul Blas Matson Navigation Patty Lizama Pacific Isla Life Mark Cruz Mid Pac Far East

GCA

While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA or Adztech of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, production team, staff, GCA members, GCA Board of Directors and advertisers.

PRODUCTION TEAM LEAD: Geri Leon Guerrero AD SALES: Jaceth Duenas PRODUCTION: Geri Leon Guerrero Christopher “Taco” Rowland Jaceth Duenas PHOTOGRAPHERS: Christopher “Taco” Rowland EDITOR: Adztech

For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at adztech@teleguam.net.

CONTRIBUTING WRITERS: John Robertson R.D. Gibson John Aguon Dave Barnhouse

Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 718 N. Marine Corps Drive, Suite 203, East West Business Center, Upper Tumon, Guam.

GCA STAFF: Desiree Lizama Christie Rose Ngiratereged Elaine Gogue

To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: gca@teleguam.net. www.guamcontractors.org

COVER: Leonard Kaae proudly displaying Black Construction’s 2nd Eagle

Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

TRADES ACADEMY B u i l d i n g

S k i l l s

F o r

A

L i f e t i m e

Guam Contractors Association

4 | APRIL2016

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S.A.M.E. UPDATE

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General Membership Meeting March 17, 2016

CAPT Noel Enriquez, Guam Post President, led last month’s General Membership Meeting which was held at the Outrigger

Borja, Small Business Programs Advisor for NAVFAC Marianas was also on hand for a brief presentation.

mechanical and medical support has helped the island community.

This month’s announcements: • Guam Post to recieve all 4 streamers for 2015! • SAVE THE DATE - Charlie Corn Golf Tournament - May 14 • JETC Phoenix - May 24-26; Call if interested in attending • Follow SAME Guam Post on Facebook! https://www.facebook.com/SAMEguampost?ref=bookmarks • DOD Summer Camp Dates: • US Army Camp - Vicksburg Post - June 12 - 18 • US Marine Corps Camp - June 19 - 25 • US Air Force Academy Camp - July 7 - 13 To join SAME Guam Post, log on to SAME.org and click on “Membership” at the top of the home page. 6 | APRIL2016

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S.A.M.E. UPDATE

Civic Action Team - Palau 554-01 554th RED HORSE Squadron Captain Naseem Ghandour, USAF Captain Naseem Ghandour, USAF was on hand at last month’s meeting to share the 554th RED HORSE Squadron’s yearly humanitarian mission to Palau. Now in it’s 46th year, the Civic Action Team (CAT) - Palau 55401, comprised of Navy, Air Force and Army forces, provides construction, medical, mechanical assistance and training to the the Palau area as well as is under the direction and guidence of the Palau National Government with oversight provided by the US Embassy.

National Swimming Pool Resurfacing

In just 6 months’ time the CAT Team has participated in over 42 events, completed 12 community construction projects and have given medical 1-year Apprentice Training Program to assist and train locals in general engineering skills. Plans are in place to create 3 more such programs. Estimated $52K in savings for services to Palau

Emmaus School Parking Lot & Road

Medical Operations Revamped Medical Apprentice Program, working with National Hospital and College for national certification.

Working with Presidential Executive Order action team to develop/implement national exercise/nutrition programs.

Creating Palau’s first national EMT program. Developed criteria & certification, co-wrote law, training instructors

Working with local scientists/botanist to further natural medicine alternatives here in Palau.

Multiple clinics over the entire 16 states of Palau. Men’s Health, Prison, Camp Katuu, NCD Specific Clinics, remote/local dispensaries and the remote SW Islands

Working with Taiwan Technical Mission Farm, State Governors, Bureau of Agriculture and Local Farmers Markets to further nutrition aspect of Palau’s NCD crisis.

Working with Public Health Department and Taiwan based Program Coordinators on expanding exercise programs

Developed annual team building events for multiple organizations in the Ministry of Health.

Lectures at local schools concerning US military, nutrition & health and communication. Also developed the Koror Elementary after school sports/exercise program.

Numerous medical support projects: 5k runs, national and state celebrations, sports events and so on. Weekly Radio Show discussing various medical topics

Tech Assist Overview Type:

TSgt Perez (Electrician)

Completed:

Construction Projects (under 10 days)

60

Vehicle Maintenance

32

$57K in savings for services to Palau

Joint Committee Meeting Members (Mid-Term)

Photos and Information courtesy to 554th RED HORSE Squadron www.guamcontractors.org

APRIL2016 | 7


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No“Plan B” for Syria but Annan as well as his successor, veteran diplomat Lakhdar Brahimi, failed to bring peace to Syria. The Italian-Swedish diplomat de Mistura managed to bring all the key international and regional players, including for the first time Iran, back to the negotiating table. "We do have something that both Kofi Annan and Lakhdar Brahimi, who tried very hard and could not have at that moment: some unity at the Security Council," he says.

By John M. Robertson

While print and electronic media have been focused during the past few months on the Syrian-Iraqi refugee crisis and ISIL attacks in France and Belgium together with potential action in the United States, there has been hopeful progress at negotiations in Geneva toward resolution of the main cause of crisis – a change in the government for Syria Syria in the Middle East is a country with historical roots going back to biblical times. Iraq and Syria are sometimes referred to as the cradle of civilization. They both play prominently in the history of Judaism, Christianity and the Muslim faiths. Focus on Syria It's been five years since pro-democracy protests started challenging the rule of Bashar al-Assad in Syria. After years of ongoing bloodshed and multiple failed attempts to resolve the conflict, no one is counting the dead anymore, but it is estimated that the Syrian crisis has killed 300,000 people and displaced millions. Ahead of the resumption of peace talks in Geneva on March 14, Staffan de Mistura, the UN special envoy to Syria, says there is a higher chance than ever of achieving a political solution. "Five years ago, no one would have ever imagined this conflict would have gone there. But perhaps now we have a chance to try and put an end to it," says de Mistura. Diplomatic efforts to end the crisis started early on with former UN Secretary-General Kofi Annan being appointed special envoy to Syria in 2011,

10 | APRIL2016

With some parties calling for a federal structure for Syria - which would grant broad autonomy to regional authorities, while maintaining the country's unity as a single state - de Mistura explains why in his opinion partition is not an option for the war-torn nation: "The unity of a country is fundamental," he says. "The last thing that Syria would need and can afford, is a partition: small states, one controlled by a group, sponsored by another, would be unsustainable.... I think no Syrian person, whoever he or she is, would accept that. They are very proud people of their own country." Fighting in Syria has slowed considerably since a fragile "cessation of hostilities agreement" brokered by the US and Russia came into force almost two weeks earlier. But there have been violations of the truce. "The issue is whether incidents exist or not. But the reality is whether the incident is contained," de Mistura says. "Whether

the incident becomes an impediment and breaks down the ceasefire. And so far, the 'cessation of hostilities' as we call it, so far they have been succeeding in controlling it." He believes that there is no “Plan B” if the peace negotiations fail. "The plan B, as far as we can see, is just a continuation of a horrible conflict which will go on and on and on. And you know who will be the only victims? The Syrian people. And I don't think there is a real plan B except for pushing hard for this to go on into a successful outcome of a political solution according to the Geneva Communique." Assad Says It Is ‘Not Difficult’ to Form a New Syrian Government With the Opposition. The Opposition, however, says he must step down for a resolution to be reached Syrian President Bashar al-Assad hinted at a possible compromise with opposition parties during the last week of March, saying it would not be difficult to include them in a new government and bring the Middle East nation’s five-year civil war to a close. Assad told Russian news agency RIA that a draft constitution, amenable to participation by sections of his existing administration as well as opposition and independent representatives, could be ready within weeks, according to Reuters. “These are not difficult

Staffan de Mistura, the UN special envoy to Syria

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INSIDER NEWS depth of their ideas, but criticized the veteran diplomats on the government side for getting bogged down. "The government is currently focusing very much on principles, which are necessary in any type of common ground on the transition," he said. "But I hope next week, and I have been saying so to them, that we will get their opinion, their details on how they see the political transition taking place."

questions,” the controversial Syrian leader said, referring to the division of portfolios and other yet-to-be-determined details. But the opposition, currently engaged in U.N.-brokered peace talks with Assad’s government, rejected his statements. “What Bashar al-Assad is talking about has no relation to the political process,” George Sabra, a representative of the opposition’s High Negotiations Committee, told Reuters, adding that a transitional body independent of Assad must be set up to reach a resolution. The United States, one of the mediating parties, echoed the opposition’s sentiment that Assad’s ouster is non-negotiable. “I don’t know whether he envisioned himself being a part of that national unity government,” White House spokesman Josh Earnest said. “Obviously that would be a nonstarter for us.” Kremlin hopes Syrian government delegation will show flexibility at peace talks The Kremlin said on Friday 25th March it hoped the Syrian government delegation would show flexibility at peace talks with the opposition. "We hope this participation (of the Damascus delegation) will continue in a constructive way ... and necessary flexibility will be displayed - of course, within possible limits," Kremlin spokesman Dmitry Peskov told a conference call with journalists. "These negotiations should be only inclusive ... including Kurds, to find a really lasting solution ... and to enable Syrians themselves to decide their destiny." Russian Foreign Minister Sergei Lavrov on the same day dismissed as "dirty leaks" reports on an alleged agreement between Russia and the United States on the future of Syrian President Bashar al-Assad. "Our American www.guamcontractors.org

partners cannot publicly call into question this formula that ... only the people of Syria decide all the questions about the future of Syria," Lavrov told a news conference. "And in these dirty leaks which distort reality we obviously see Washington's inability to force some of its allies in the region and in Europe ... to give the Syrian people a sovereign right to decide their destiny as well as who will be their leader," Lavrov added. The Arabian newspaper al-Hayat reported on Thursday 31 March that U.S. Secretary of State John Kerry had told several Arab countries that Russia and the U.S. reached an understanding on the future of Syria's peace process, including Assad's departure to another country at some unspecified stage. The Kremlin said the report was untrue. One of the troubling aspects to the negotiations thus far is the absence, or perceived absence, of leadership by the United States. Once again, the Russians have successfully inserted themselves into the breach with military action and diplomatic muscle. Syria peace talks grind toward pivotal Assad question Syrian government negotiators at the Geneva peace talks are coming under unaccustomed pressure to discuss something far outside their comfort zone: the fate of President Bashar al-Assad. And they are doing their best to avoid it. U.N. mediator Staffan de Mistura describes Syria's political transition as "the mother of all issues" and, emboldened by the Russian and U.S. prestige that brought the participants to the negotiating table, he refuses to drop the subject. On Friday 18th March, after a week of talks in Geneva, he praised the opposition for the

Arguments over Assad's fate were a major cause of the failure of previous U.N. peace efforts in 2012 and 2014 to end a civil war that has now lasted five years, killed more than 250,000 people and caused a refugee crisis. The main opposition, along with the United States and other Western nations, has long insisted any peace deal must include his departure from power, while the Syrian government and Russia have said there is no such clause in the international agreements that underwrite the peace process. The Syrian president looked more secure than ever at the start of the latest round of talks, riding high after a Russian-backed military campaign. But Russia's surprise withdrawal of most of its forces during the week signaled that Moscow expected its Syrian allies to take the Geneva talks seriously. And de Mistura appointed a Russian expert to sit in the negotiations with him and to advise on political issues. Unlike previous rounds, the talks have run for a week without any hint of collapse, forcing the government delegation led by Syria's U.N. Ambassador Bashar Ja'afari to acknowledge de Mistura's demands. Ja'afari began by giving de Mistura a document entitled "Basic elements for a political solution". "Approving these principles will open a serious dialogue under Syrian leadership without foreign intervention and without preconditions," Ja'afari said on Friday, in a brief statement after the longest session of the talks so far. But officials and diplomats involved in the talks variously described the document as "very thin", "bland" and "off the point". It listed familiar goals such as maintaining a secular state and Syria's territorial integrity and the importance of fighting terrorism, according to sources who have read it. But it said nothing about a political transition. FILIBUSTER In sessions with de Mistura, Ja'afari has approached the negotiations as slowly as possible, reopening U.N. resolutions and going through them "by the letter", said a source with knowledge of the process. "Mr Ja'afari is still in a kind of delusion of trying to APRIL2016 | 11


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filibuster his way out of town, or to filibuster the opposition out of town," said a western diplomat. "He will spend every minute questioning the nature of the opposition, quibbling about the font in the agenda." By Friday, de Mistura said Ja'afari's team needed to go faster and couldn't avoid the substantive question forever. "The fact that the government delegation would like to set different rules or play with the terms of this agreement is I think a non-starter," said opposition delegate Basma Kodmani. A diplomat involved in the peace process said Assad was not used to having to compromise, and that made Ja'afari's negotiating position rigid. "He has to have control. If he gives up 1 percent, he loses 100 percent. He's designed like that," the diplomat said. In three meetings with each side during the week, de Mistura quizzed the negotiators about their ideas, and they were also able to put questions to their rivals through him, one participant said. The U.N. mediation team spends the sessions "stripping the papers apart and delving deep into the subject and forcing them to do more homework and forcing them to give answers", said a source with knowledge of the process. The negotiators do not meet each other, but face de Mistura

12 | APRIL2016

U.N. Special Envoy for Syria Staffan de Mistura (2nd R) meets with Syrian government representatives during Syrian Peace talks at the United Nations in Geneva, Switzerland, March 24, 2016. (Reuters/Fabrice Coffrini/Pool) in a functional, windowless room with desks arranged in a square. There is space for eight or nine people around each side, but the conditions are slightly cramped, and afford no luxury beyond a plastic bottle of mineral water on each desk. "De Mistura is dragging the regime in with his queries on their position papers, rather than

allowing them to talk about what they want," said the diplomat involved in the peace process. "The regime had in the past a bit of space to play and to maneuver," he said. "The regime knows it has to come and stay but is not prepared for the idea that it has to engage the opposition."

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SOARING WITH THEIR SECOND EAGLE By R.D. Gibson


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Sagas are “long stories of heroic achievement” like The Lord of the Rings, The Legend of Gilgamesh, The Iliad, and other prolific classics we were forced to read in high school. [The point is: these stories always have a protagonist who, though faced with many obstacles, should come out on top (i.e.; get the girl, save the village, save mankind, etc.)] fix Similarly, Black Construction Company (“BCC”) is in the midst of their saga. As the Guam Contractor Association’s 2015 Contractor of the Year, our protagonist faced and conquered obstacles and challenges. It should not come as a surprise that they received the same award twice. BCC won the Associated Builders and Contractor, Inc.’s Eagle Award for General Contractor/Construction Management Categories for Guam Commercial Port Improvement Program’s facility expansion. The Port Authority of Guam is one of the lifelines to Guam’s economy. Over 90-percent of all commercial goods come through the Port. The Port is bolstering their ability to accommodate bigger vessels and steering the course of a modernization plan in anticipation of the military build up. Companies, like Black Construction Company, have been there to support and fortify the Port’s growth. Leonard Kaae, President of Black Construction

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Company, commenting on their work on the project, “Black put forth great effort to provide the owner with a project that met all expectations,” “Challenges that were overcome included logistic and procurement issues related to working in a remote and resource constrained environment, working safely during the ongoing operations of the Commercial Port, and meeting aggressive schedules.” BCC’s work has sent a resounding echo throughout the region, and received thunderous applause stateside for the second time. The Associated Builders and Contractor, Inc. has awarded BCC the “prestigious” Eagle Award. This award is awarded to projects and companies recognized for their innovation, and outstanding work in projects throughout the nation. “…the recognition by ABC’s EIC (Excellence in Construction) program provides inspiration to our personnel to continue to strive for nothing but excellence,” Kaae elaborated. The last time Black Construction Company won this award was for the Kosrae State Correctional Facility. The project was completed in 2013; they were awarded a year later. BCC nabbed the award in the “Institutional: Under $5 million” category, allowing them to stand out among the best of the best. And, it is only by building and growing a strong and supportive group

APRIL2016 | 15


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For the BCC Family, positivity is what changes the game. It’s what pulls the protagonist through any kind of seemingly impossible, tiresome, crazy, frightening, and downright insufferable feat. “It’s imperative to maintain a positive attitude toward all aspects of the day-to-day operations no matter the challenges,” Kaae said about maintaining motivation for small businesses and • contractors. •

of people who believe in your product, your services, and above all else, your mission. The Black Construction Company is fueled with the spirit that “embodies passion, motivation, dedication, and commitment exhibited by our employees, which has afforded us countless opportunities to execute our projects successfully.” Companies need passion. They need motivation. They need commitment. Those are the very things that drive protagonists toward success. BCC has helped set the industry standard, exceed expectations, while still maintaining quality, and above all else safety – not just for projects, but for the employees who complete them with a professional demeanor and work ethic.

With the will to succeed, employees who continuously go the extra mile, leadership whose • is always forward thinking and constructive, vision and a reputation for outstanding, professional • the saga of our protagonist - Black work, Construction Company - does not look like it will • conclude prematurely. The Eagle Awards surely come in Act I of this series. What comes next will certainly be telling of not just their longevity as a company, but BCC’s spirit to move an island forward and prove their heroism in its later chapters.

“Black’s employees are the heart and soul of the company,” said Kaae. “Each individual contributes their skillset towards goals that serve as the mechanics that make our organization operate efficiently and effectively.” Their 58-year story continues sailing ahead, looking toward the future of construction on Guam, especially with the movement of Marines to Guam on the horizon also known as the military build-up. What once seemed to be an urban legend, the island is beginning to see its fruition. In the mean time, BCC has their eyes set on NAVFAC Engineering Command, Air Force, Federal government projects, as well as projects in the Philippines, the Commonwealth of the Northern Mariana Islands, and the Federated States of Micronesia. 16 | APRIL2016

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Tuesday, April 26 DAY 1 7:30 - 8:00

Registration

8:00 - 8:30

How to Win The Fight! Change Orders & Claims

I. Overview A. Explanation Of Why Claims Escalated Since 1979 B. What Will Be Covered In Today’s Seminar

Wednesday, April 27 DAY 2 7:30 - 8:00

Registration

8:00 - 8:30

II. Documentation Needed For Change Orders/Claims A. The Pyramid Of Success - Successful Building Blocks B. Double Duty Documents - Using Cost Codes C. Keys To Building A Successful Project D. Case Study No. 1 - Submittasl & Addendums

8:30 - 10:15

II. Documentation Of Change Orders A. Places To Look For Change Orders B. Types Of Change Orders C. Putting The Parties On Notice D. Making The Rules Work For You E. Documentation - Protect Your Own Interest F. Cost Coding Made Easy

10:15 - 10:30

Break

10:30 - 11:15

III. Documentation Needed For Change Orders/Claims A. The 5 Logs That You Must Keep B. The Winning RFI System C. How To Write A Great Daily Report - Case Study No. 2

11:15 - 11:30

10:15 - 10:30

Break

10:30 - 11:30

III. Pricing The Change Order Like A Pro A. Don’t Fall For The Time & Material Not-To-Exceed Trap B. Correct Follow-Up Procedures C. Components Of A Change Order D. Cost Pricing Like A Pro i. How To Overcome Unfair Mark-Ups ii. More Details Not Less iii. How To Add In Indirect Costs E. Dwg & Spec Conflicts - Interactive Pricing (Case Study No. 1) F. Detail & Install Rebar - Case Study No. 2

IV. Change Orders & Claims (Cont.) A. Different Types Of Change Orders & Claims i. Owner Directed Change Orders ii. Time & Material Change Orders

11:30 - 12:30

Lunch Break

12:30 - 2:30

IV. Change Orders & Claims (Cont.) A. The Spearin Doctrine - Defective Plans & Specs B. Different Types Of Change Orders/Claims (Part 2) i. How To Win Conflicts & Omissions Every Time ii. Order Of Precedence In Documents - Case Study No. 3 iii. Ambiguities - Latent & Patent iv. Value Engineering v. Differing Site Conditions C. The Definition Of A Claim D. Delay Change Orders

2:30 - 2:45

Break

11:30 - 12:30

Lunch Break

12:30 - 1:00

IV. Learn To Calculate Delay Costs A. Extended Field Overhead Costs B. Extended Home Office Overhead Costs C. Escalation - Labor/Material/Equipment

1:00 - 1:30

V. Negotiations Do’s And Dont’s A. 12 Traits Of A Great Negotiator

2:45 - 4:00

IV. Change Orders & Claims (Cont.) A. Different Types Of Change Orders (Part 3) i Acceleration Change Orders ii. Suspension & Stop Orders iii. Cardinal Changes iv. How To Prepare Winning Change Orders & Claims v. How To Calculate Delay Costs vi. Loss Of Profit Claims vii. Change In Charter viii. Superior Knowledge B. How To Calculate Inefficiency Costs. C. Litigation Process D. False Claim Act Registration For Meet The Generals

1:30 - 2:30

VI. Learn To Calculate Disruption Costs A. Measuring Labor Productivity B. Excessive Change Order Inefficiency C. Measured Mile Inefficiency i. Actual Problem Solving

2:30 - 2:45

Break

2:45 - 4:00

VI. Learn To Calculate Disruption Costs (Cont.) A. Overtime Inefficiency i. Weekly & Spot Overtime ii. Actual Problem Solving iii. Case Law B. Interactive Case Study No. 3 i. Piping Installation Changed Conditions ii. Class Evaluation Of Negotiations

5:00 - 7:00

Meet The Generals Speed Networking Break Out Room (Upstairs)

5:00 - 8:00

Cocktails / Networking (Main Ballroom Foyer)

Pricing And Negotiating Change Orders Like A Pro

I. Overview A. Definition Of Change Orders & Claims B. How To Recognize Change Orders C. Do Not Sign Their Change Order Language

8:30 - 10:15

8:00

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5:00

VENUE CLOSED & SECURED

VENUE CLOSED & SECURED

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GPA Steaming Along…

Cabras 1 & 2 By John Aguon


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Rounding the southbound lane of Piti’s segment of Marine Corps Drive, AKA, Route 1, there’s a familiar cluster of industrial-looking buildings contrasting the beautiful blue of Guam’s ocean shore. You have arrived—at Cabras, the core power generation locale for Guam Power Authority (GPA). Welcome to Cabras 1 & Cabras 2, GPA’s home for their main steam power plants, and also, the worksite for some 50 plus GPA team members tasked with the ever-important task of operating these behemoth facilities. Jockeying up to and past the necessary security (9/11 changed everything), I am met at the administration building by Francis I. Cruz, the assistant superintendent for Cabras 1 and 2. A seasoned GPA manager of some 27 service years, Cruz began his career in maintenance, and obviously, coursed through the learning and experience obstacles to find his present position; as part of a body of workers practically assembled to deliver electrical power generation to GPA for Guam and its residents. We make our way to an adjacent building. He begins, “Cabras 1 & 2 are steam power plants, each rated for 66 megawatts. So, that’s 66 megawatts times two for a combined power generation of 132 megawatts from GPA’s Cabras steam power plant facility.” He’s done this before. And, though I didn’t realize it then, there are nooks and crannies in the labyrinth of the Cabras facility that require 27 years of mapping with which to familiarize; and then, there’s the acquiring of the technical understanding too. Unaffected by his volume of knowledge, he continues, “The steam power plant was built in

1974-1975, and commissioned in 1975. Currently, Unit 1 is operating at 40MW, and Unit 2 is offline, for a 45-day outage—a major overhaul.” He stops at an enclosed electronic graphic display which summarily illustrates the process—boiler-steam-turbine-power generation. He parses into an explanation detailing a component for the present task underway, “This is a steam generator producing 650,000 steam-pounds-per-hour. Currently, we are replacing an archway secondary super-heater. We are trying to bring it up to nameplate data on the boiler, which are the specifications this particular equipment should meet to perform optimally.” No. I didn’t understand what was actually being done; but, did understand that these tasks are ordered by their technical partners as part and parcel of the regularly scheduled requisite inspections and reporting—for safety, performance, and reliability. Just prior to entering the innards of the power plant, we stroll into the central control room. Cruz pauses to gander, “All pneumatic control apparatus, just recently, were upgraded to a Digital Control Management System, which allows for computer-monitored and computer-controlled adjustments to be made.” According to Cruz, “In the past, some adjustments had to be made at the mechanical control point. Now, however, with the updated Digital Control Management System, those previously performed manual tasks are now eliminated, and done digitally and remotely.” At the Digital Control Management System, there’s an array of video monitors of varying sizes, of as varied

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will give the facility another 10 year life extension,” he said. With respect to boiler maintenance and operation, “Our boiler goes through inspection and repair every 2 years. This component of the power plant requires greater frequency of inspection.” At a point, while traversing throughout the plant and its pathways, Cruz gives a brief on the steam generation process. “We use fuel to heat water, • creating steam that drives our turbines, which in turn generates electricity, which is then transmitted to • our customers throughout Guam.” And, embedded, in and around the plant operation tour, he made • intermittent note, “We regard safety as a key part of our mission. Our • inspections and repairs are needed to assure a safe working environment for our employees. We all take it seriously.” •

technical/mechanical realtime information being showcased. There’s also a video monitor, cued in on the Cabras external smokestack, and the smoke plume it produces. Regarding, fulfilling environment regulations, GPA, under the guidance of Guam EPA, adheres to all Federal EPA regulations under Title IX. They are mandated to do so. Observing the antiseptic atmosphere here, at the Digital Control Management System control room, we go in—where it all happens, to the belly of the whale; so, to speak. The contrast is stark. My first sense of it was the order of magnitude regarding the sound environment—control center to the operating equipment area. Relative quiet to very loud. Volume-wise, not unlike a rock or R&B concert. It just didn’t have the same recreational result. I digress. Observing the worksite’s physical environment, it was a huge complex maze of pipes, ducts, crevices, catwalks, and walkways giving access to virtually all functioning parts of the plant.

In a hallway, just behind the Digital Control Management System control room, Cruz ties off with a closing stop at a illustration of what happens to the electricity once produced, “After we generate the power here, it’s transmitted to our customers.” A kind of another day at the office thing. So, before you charge that iPhone, cook that pot of rice, dry those clothes, light the patio, turn on the “Open” neon sign, take the elevator, GPA has to produce that power that makes life happen. Cabras steam power plant accounts, in a major way, for that needed electricity—with the other balance of power generation delivered from a variety of locales like Tanguisson and Dededo.

As Cruz advised earlier, Unit 2 was in major overhaul mode. We happened into the work area; and, came across a team of technicians engaged in a repair operation—with one of the turbine component assemblies dismantled. Cruz said that Unit 1 had undergone its scheduled down time in 2013—turbine, boiler, generator and its auxiliary inspections and repair. According to Cruz, these inspections occur about every 5 years, with reports indicating the necessary parts for the next follow-on cycle of work. Regarding the life of service, “Cabras facility is around its 40 year mark, and there is an upgrade which

22 | APRIL2016

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CONSTRUCTION HEADLINE PRESS RELEASE March 25, 2016

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Contact: ABC: Jeff Leieritz (202) 905-2104 leieritz@abc.org

Construction Industry Voices Concerns with OSHA's Silica Rule WASHINGTON, March 24-The Construction Industry Safety Coalition (CISC) has concerns with the final rule on respirable crystalline silica released today by the Occupational Safety and Health Administration (OSHA). It appears, upon initial review, that the 1,772-page final rule contains some of the same problematic provisions that the CISC previously identified and shared with the agency. CISC has been a highly engaged participant in the rulemaking process since OSHA put forth the proposed rule two and a half years ago. "The construction industry submitted hundreds of pages of comments in response to OSHA's proposal and as we review the final rule we will see whether OSHA has taken these comments into account in developing a standard that is workable," said Associated Builders and Contractors (ABC) Vice President of Regulatory, Labor and State Affairs Ben Brubeck. "ABC will remain an engaged stakeholder with OSHA in developing viable standards that will promote healthy and safe construction job sites." "NAHB has long advocated the importance of the rule being both technologically and economically feasible," said Ed Brady, chairman of the National Association of Home Builders (NAHB) and home builder and developer from Bloomington, Ill. "While we're still reviewing the final rule, we're concerned that it may not adequately address these issues and take into consideration real-world application." "Instead of crafting a new standard that the construction industry can comply with, administration officials have instead opted to set a new standard that is well beyond the capabilities of current air filtration and dust removal technologies," said Stephen E. Sandherr, the CEO of the Associated General Contractors of America. "Our concern is that this new rule will do little to improve workplace health and safety, which is why we will continue our review of the new measure, consult with our members and decide on a future course of action that will best serve the health and safety of millions of construction workers across the country." "At first glance, we have observed that a number of provisions that concerned us in the proposed rule have been left in the final rule. This makes us continue to question the final rule's technological and economic feasibility for the construction industry. In addition, OSHA has added several new provisions not in the proposed rule that we have not had a chance to thoroughly review and consider the impacts. Once we complete our review we will be able to be more specific about what was released today," said Jeff Buczkiewicz, president of the Mason Contractors Association of America. The members of the CISC include: The American Road and Transportation Builders Association, American Society of Concrete Contractors, American Subcontractors Association, Associated Builders and Contractors, Associated General Contractors, Association of the Wall and Ceiling Industry, Building Stone Institute, Concrete Sawing & Drilling Association, Construction & Demolition Recycling Association, Distribution Contractors Association, Interlocking Concrete Pavement Institute, International Council of Employers of Bricklayers and Allied Craftworkers, Leading Builders of America, Marble Institute of America, Mason Contractors Association of America, Mechanical Contractors Association of America, National Association of Home Builders, National Association of the Remodeling Industry, National Demolition Association, National Electrical Contractors Association, National Roofing Contractors Association, National Utility Contractors Association, Natural Stone Council, The Association of Union Constructors and the Tile Roofing Institute.

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CRANE CRITIQUE

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CRANE OPERATING COSTS A monthly crane and rigging informative column for all personnel directly or indirectly involved with crane safety. Each month we will attempt to explain a different technical issue pertaining to crane operations here on Guam, addressing the sometimes overlooked or misunderstood topics by management and operators alike. By Dave Barnhouse

This month’s topic: The very important subject of crane operation costs. As much as some will not admit it, the bottom line is coming out in the black, whether be the crane owner, lessor, or user. As far as the crane user, or contractor, the big question has always been to rent or own. This decision is usually left up to the money crunchers, as it should be, but unfortunately these decision makers are not usually the most crane knowledgeable personnel, and bad decisions are sometimes made. The rent or buy issue is a complicated one and not the purpose of this discussion, but rather to address some of the hidden operating costs a potential buyer or renter may be paying for when he operates or rents a crane. One point I would like to make clear is that cost issue is not the only factor in deciding what contractors should use for their lifting projects. I have always advised small contractors to consider renting over buying because the average contractor does not have the key personnel required for even a small boom truck operation. And yes, small boom trucks are cranes. If you are one to ask this question than perhaps you should not purchase that boom truck. So what are some of the benefits of renting? Here are a few: 1. No Depreciation 2. Modern Equipment 3. No Risk of Obsolescence 4. Little to No Maintenance Costs 5. No Warranty Costs 6. Insurance based on Job 7. Little to No Storage Cost 8. Specialized Equipment that’s Right for Your Specific Job 9. Time and Money Saved by removing the purchasing process 10. No Capital Investment 11. More Flexibility 12. Better Availability without Transportation

30 | APRIL2016

Costs 13. No Burden of Selling Equipment Later This is not to mention that you and your team get to supplement your current fleet without the risks of owning or leasing. As the crane renter and user most of these costs in this list are not your concern or responsibility, right? Maybe not directly but of course you are paying all these costs indirectly with your rental fee. But let's look at some of these items more closely, as most end users do not realize the actual costs and when billed $1,500 or $2,000 for a day's work when only a few lifts were made, they feel they are being taken

advantage of. The costs most likely not realized by the crane renter are the hidden maintenance costs. If you have ever experienced sticker shock for a major repair of your automobile, try paying for a similar crane repair. Though most crane owners employ crane mechanics to maintain and perform these major repairs in-house, the end cost can be enormous. Recently during an annual inspection of a local company's hydraulic crane, for example, a small oil leak was noticed from the boom extension cylinder. It was scheduled for a repair and the parts already purchased, a total of $62,000 for the parts only. This particular boom type repair required the manufacturer's tech

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to be on site to perform the final set-up for manufacturer's warranty, another $12,000 for his time. The company's own man hours and assist crane for the disassembly will total out this repair at $80,000. All for a minor hydraulic oil drip, but a necessary repair to enable annual certification and continued work. Our own little 15 ton boom truck's turntable bearing tilt measurement recently measured out slightly more than acceptable maximum. This ended up costing us more than $9,000 with shipping and our labor costs for the change-out, the lost revenue from time out of service also adds up. These types of repairs are never considered by the crane renter when negotiating the rental fees but are a constant operating cost the owner must cover with generated revenue. Most non-crane owners may not realize modern cranes rely heavily on computerized components, usually required functional before the crane is operational. These computer components are not your everyday MAC or PC items that can be picked up at the corner computer store. Purchased from the crane manufacturer only, again, usually at unbelievable prices. Besides these occasional type repairs, there are the major component overhaul items that are necessary to keep a crane functional throughout its economic life. Other less obvious operating costs are operator and rigger wages and training. These are skilled workers and far from minimum wages paid to enable safe and

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productive operators. Inspections lso are required annually by a qualified person. Maintaining the inspector's qualifications are another unbelievable expense, requiring regular seminars and trips to the states. Let's not forget all the necessary crane support equipment. Wire rope, rigging, corrosion control, shop expenses, PM personnel, and of course the important administrative staff. The recent news from the local Weights and Measures has informed us of the road weight restrictions that will be enforced. How does this affect you as the business owner needing an air conditioner set on a 10 story building? Most cranes will not be able to travel on the local roads without some disassembly of the crane, requiring an assist truck and crew, more indirect costs. Another major operating cost that is constant regardless if the crane is generating revenue is insurance. Some of the unique and/or necessary types of insurance include: • General Liability • Property • Equipment • Commercial Auto Liability • Umbrella & Excess • Riggers Liability including Loss of Use Coverage • Sudden & Accidental Pollution • Mobile Equipment Coverage • Over-The-Road Liability extension • 3rd party & Bare rental coverage • Replacement Cost Valuation • Boom Overload • Care, Custody & Control Liability • Loan/Lease Gap Coverage

Besides the obvious negative fact of high rental fees for the cranes, one of the unfortunate conclusions of many contractors is the belief they would benefit from owning the crane instead of renting. I have witnessed this several times here on Guam. If you are a crane user and are contemplating a crane purchase, based on your assumption you can operate on a smaller budget than the current rental rates, please reconsider. There are too many contractors on Guam that have no business owning a crane. Just accept the fact that crane work is expensive, research your project crane needs and allow a sufficient amount for this in your bids, and then leave this type of work up to the crane people. In the mean time, consider all the hidden costs of a crane operation when presented with your next crane rental invoice and feel fortunate you do not need to pay a $30 an hour operator for nothing while your crane is undergoing that $80,000 repair. Dave Barnhouse resides in Tamuning and has been involved with operations, maintenance, operator training, and/or inspections, of cranes since 1969. He is a Certified Environmental Trainer, CHST, NCCCO certified crane operator, Lift Director, Level II Rigger, NCCCO practical examiner for all types of mobile crane operators, riggers, signal persons, and the only OSHA accredited crane inspector on Guam.

Please e-mail any comments, questions, or specific topics you would like to see addressed in this column to certs@ite.net and we will certainly attempt to accommodate your requests.

All crane operators must be nationally certified by November 2017 Call Island CERTS Corporation at (671) 653-5501 or

E-mail contactus@islandcerts.org

Ask for Nancy about how to get your operators nationally certified.

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34 | APRIL2016 11 3

Pipefitter Quality Control Inspector Radiology Technologist Solar Installer Spa Thereapist

6

1

1

1

25

2

3 1 8 1 2 8 1 7 3 15

1

2

27

Caregiver

Chef

Chemo Registered Nurse

Cooks

Crew Leader

Diving Instructor Electrical Drafter ER registered Nurse Executive Assistant Manager F&B Figaro Coffee Shop Supervisor Florist Guest Relations Host/Hostess Heavy Equipment Mechanic HVAC Mechanic ICU Registered Nurse

Inventory Control Manager

Japanese Specialty Cook

Landscape Gardener

10

1 5 1

6 12 2

4

Marine Maintenance Mechanic

Market Research Analyst Masseues

Med/Tele Registered Nurse Med-Surge OR Registered Nurse Motor Repairer

NICU OR Registered Nurse

252

2

Baker

Total Non-Construction H2-B Workers

7

Maintenace Machinery Worker

Mechanic

2

Machinist

Les Mills Exercise Instructor and Trainer 1

1 1 1 6 4 18 1 1 1 2

2

1

11 2

2

Specialty Chef Italian Specialty Chef Thai Specialty Cook Surgical Registered Nurse Welder Welder/Fitter OSH Instructor Biomedical Equipment Specialist MRI Technician Ultrasound Technician

Scuba/Dive Instrustor

Pediatrics Registered Nurse

4

1

OR Registered Nurse

Cardiac Cath Registered Nurse

Baker

Birthing Registered Nurse

4 1

5 4 4

NICU Registered Nurse OBGYN/IMU Registered Nurse

TOTAL Construction H-2B Workers

Total OTHER Construction

Plasterer Welder

Landscaper

Heavy Equipment Mechanic HVAC

HE Mechanic

General Maintenance & Repairer

AC Maintenance Technician AC Mechanic

Other Construction Occupations

Employers Workplace Monthly Report Statistics

AC Maintenance Tech Automotive Repairer

Other Non-Construction Occupations

GUAM DEPARTMENT OF LABOR Alien Labor Processing Certification Division

35

Heavy Equip. Operator

1282

75

4 26

5 97 7

1207

1534

Grand Total H-2B Workers

4500

0

500

1000

Total U.S. Workers

Grand Total H2B Workers

Korea Thailand 0.33% 0.00%

11.85%

0.75%

3.07%

0.08%

37.86%

2.90%

8.04% 0.58%

Other 0.00%

Peru 0.00%

Prepared By: Sherine Espinosa Contact information: Greg Massey, ALPCD Administrator P.O. Box 9970 Tamuning, Guam 96931 (671)475-8005/8003

Camp Cook

Heavy Equip. Operator Electrician

Sheetmetal Worker

Reinforcing Metalworker Structural Steelworker Plumber

Carpenter

Cement Mason

Other

Thailand

Peru

Italy

Australia

United Kingdom

Kiribati

Japan

Korea

Philippines

United Kingdom 0.07%

Kiribati 0.13%

34.88%

Common Construction Occupations

Philippines 99.15%

Japan 0.33%

Australia 0.00%

Italy 0.00%

H-2B Population by Nationality

CONSTRUCTION NEWS BULLETIN

1500

2000

2500

3000

3500

4000

US Workers vs. H-2B

3102

Total U.S. Workers

5000

34

78

Total H-2B Employers

44

Non-Construction

Construction

Employers By Industry

1521 5 5 2 1 0 0 0 0 0 1534

Investing in Lighting Philippines Korea Japan Kiribati United Kingdom Australia Italy Peru Thailand Other Total by Nationality

Workers by Nationality

Total Common Const.

Camp Cook

Electrician

1

2

9 37

Structural Steelworker Plumber Sheetmetal Worker

8 8

457 143

Reinforcing Metalworker

Carpenter

Common Construction Occupations 421 Cement Mason

6

10 2

MONTH ENDING: February 2016

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GCA Construction News Bulletin April 2016  

Guam Contractors' Assn. Monthly Construction News Bulletin is Guam's official construction news publication.