GCA Construction News Bulletin May 2015

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The Team of GPSI Guam

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Feature Story

26 Crane Critique

Chamorro Phrase Of The Month Fino Chamorro: English:

Mala'gu y mannahak.

The rabbit fish is running.

brought to you by The Guam Contractors Association.

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TRADES ACADEMY B u i l d i n g

S k i l l s

F o r


L i f e t i m e

Guam Contractors Association

THEDIRECTORS PRESIDENT James A. Martinez Guam Constractors Association PAST CHAIRMAN Tom Anderson Black Construction Corporation CHAIRMAN - ELECT Art Chan Hawaiian Rock Products VICE CHAIRMAN - ELECT John Sage WATTS Constructors SECRETARY/TREASURER William Beery Tutujan Hill Group CONTRACTORS DIRECTORS: Narci Dimaoala Amazon Construction Carlo Leon Guerrero M80s Office Systems Conchita Bathan Core Tech International Tom San Nicolas dck pacific guam LLC Miguel Rangel Maeda Pacific Corporation ASSOCIATE DIRECTORS: Jeffrey Larson TakeCare Insurance Ray Yanger Fastenal Patty Lizama Pacific Isla Life Michael Kikuta Matson Navigation

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

THETEAM PUBLISHER: James Martinez PRODUCTION TEAM Geri Leon Guerrero AD SALES: Jaceth Duenas PRODUCTION: Geri Leon Guerrero Christopher “Taco” Rowland Jaceth Duenas PHOTOGRAPHERS: Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson R.D. Gibson Shawn Gumataotao Dave Barnhouse Tim Waite Ted Garrison GCA STAFF: Francine Arceo Desiree Lizama COVER: Sailing forward with the Team of GPSI


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S.A.M.E. UPDATE Members of the Society of American Military Engineers (SAME) Guam Post held their monthly

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Beach Resort in Tumon, April 16. sized the importance of maintaining readiness and Squadron 2LT Omar Cervantes. During his brief he discussed what it means to be an Air Force civil engineer, and presented numerous projects in progress at Andersen Air Force Base. Smithbridge Guam, Inc. Vice President and General Manager Stevyn Radonich gave the sustaining member brief, which highlighted Smithbridge’s history, goals, commitment to safety, and scope of

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MAY2015 | 7

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North Korean Threat to the Western Pacific Region

By John M. Robertson

The security of our region is not only related to China and its growing economy and expanding military strength, but also a small rogue nation to the north of us. The North Korean threat has been a concern for a number years and it is becoming more evident, with its only ally, China, now expressing concern to the U.S. The North Korean military could not conduct a sustained military engagement with its neighbors but it could do a lot of damage and perhaps bring China or Russia into the fray in its support. A strong nuclear capability could also be used as a bargaining chip with the west in future confrontations and also be used to provide revenue through sales of nuclear weaponry and technology to other warring nations and factions. Bottom line, a strong military and diplomatic presence on Guam, at the tip of the U.S. spear, is vital to the security and peace of the region and our great nation.

China Warns North Korean Nuclear Threat Is Rising Pyongyang could double nuclearweapons arsenal by next year, according to latest Beijing estimates

China’s top nuclear experts have increased their estimates of North Korea’s nuclear weapons production well beyond most previous U.S. figures, suggesting Pyongyang can make enough warheads to threaten regional security for the U.S. and its allies. The latest Chinese estimates, relayed in a closed-door meeting with U.S. nuclear specialists, showed that North Korea may already have 20 warheads, as well as the capability of producing enough weaponsgrade uranium to double its arsenal by next year, according to people briefed on the matter. A well-stocked nuclear armory in North Korea ramps up security fears in Japan and South Korea, neighboring U.S. allies that could seek their own nuclear weapons in defense. Washington has mutual defense treaties with Seoul and Tokyo, which mean an attack on South Korea or Japan is regarded as an attack on the U.S. “I’m concerned that by 20, they actually have a nuclear arsenal,” said Siegfried Hecker, a Stanford University professor and former head of the Los Alamos National Laboratory, who attended the closed-door meeting in February. “The more they believe they have a fully functional nuclear arsenal and deterrent, the more difficult it’s going to be to walk them back from that.” Chinese experts now believe North Korea has a greater domestic capacity to enrich uranium than previously thought, Mr. Hecker said.

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The Chinese estimates reflect growing concern in Beijing over North Korea’s weapons program and what they see as U.S. inaction while President Barack Obama focuses on a nuclear deal with Iran. A well-armed North Korea may prompt the U.S. to adopt countermeasures, especially in missile defense. Adm. William Gortney, head of U.S. Northern Command, said this month that defense officials believe North Korea can now mount a nuclear warhead on an intercontinental ballistic missile called the KN-08. U.S. officials don’t believe the missile has been tested, but experts estimate it has a range of about 5,600 miles—within reach of the western edge of the continental U.S., including California. An increase in North Korea’s nuclear arsenal feeds international concern about proliferation from a country that, U.S. officials said, previously exported nuclear technology to Syria and missile components to Iran, Yemen and Egypt. In Washington, some Republican lawmakers said the pending White House deal with Iran could mirror the 1994 nuclear agreement the Clinton administration made with North Korea. The deal was intended to halt Pyongyang’s nuclear weapons capabilities, but instead, they allege, provided diplomatic cover to expand them. North Korea tested its first nuclear device in 2006. “We saw how North Korea was able to game this whole process,” U.S. Rep. Ed Royce (R., Calif.), chairman of the House Foreign Affairs Committee, said in an


expert, has long been part of international efforts to understand North Korea’s nuclear program. In 2010, he revealed North Korea had a large uranium enrichment program after he saw the facilities during a visit there. The estimate that North Korea may have had 20 warheads at the end of last year—and could build 20 more by 2016—was given during a presentation by one of China’s top uranium enrichment experts, according to people familiar with the meeting. They said it was the first time they had heard such a high Chinese estimate.

interview. “I wouldn’t be surprised if Iran had its hands on the same playbook.” The pace of North Korea’s nuclear arms growth depends on its warhead designs and its uranium-enrichment capacity, Mr. Royce said: “We know they have one factory; we don’t know if they have another one.” Recent estimates by U.S. experts range from 10 to 16 nuclear bombs today. Mr. Royce said he met Chinese academics on a recent trip to Beijing and was struck by the concerns he heard about Pyongyang’s nuclear capabilities. Relations between North Korea and China have deteriorated since Xi Jinping became China’s leader in 2012 and North Korea’s leader, Kim Jong Un, took power following the death of his father in late 2011. China, which is North Korea’s largest investor, aid donor and trade partner, has for most of the past decade underestimated Pyongyang’s nuclear capabilities, nuclear experts said, including its capacity to produce fissile material. Estimates of North Korea’s capabilities by Chinese experts began to align with those in the U.S. after 2010, and moved beyond after 2013, according to people familiar with exchanges on the matter between China and the U.S. Until recently, the Chinese “had a pretty low opinion of what the North Koreans could do,” said David Albright, an expert on North Korea’s nuclear weapons and head of the Institute for Science and International Security in Washington. “I think they’re worried now.” China’s foreign and defense ministries didn’t respond to requests for comment. Diplomats at North Korea’s mission to the United Nations didn’t respond to attempts to seek comment. The White House, State Department and Pentagon declined to provide U.S. estimates of North Korea’s nuclear arsenal. “We have been and remain concerned about North Korea’s nuclear


program and believe China should continue to use its influence to curtail North Korea’s provocative actions,” said Patrick Ventrell, a spokesman for the U.S. National Security Council. He said the U.S. was working with other countries to implement U.N. sanctions designed to press North Korea “to return to credible and authentic denuclearization talks and to take concrete steps to denuclearize.” The U.S. hasn’t engaged in regular high-level talks with Pyongyang since 2012, when North Korea conducted a long-range missile test. The U.S. has instead pressed China to use its economic leverage to rein in North Korea. The latest Chinese estimates of North Korea’s nuclear capability were shared during a February meeting at the China Institute of International Studies, the Chinese foreign ministry’s think tank. The Chinese brought technical, political and diplomatic experts on North Korea’s nuclear program, as well as military representatives, said people familiar with the meeting. Mr. Hecker, the U.S. team’s lead technical

Mr. Hecker declined to comment on the meeting but said he had met with Chinese experts to discuss North Korea’s capabilities at least once a year since 2004. “They believe on the basis of what they’ve put together now that the North Koreans have enough enriched uranium capacity to be able to make eight to 10 bombs’ worth of highly enriched uranium per year,” said Mr. Hecker, who added that estimates by China and the U.S. involved a great deal of guesswork. U.S. officials didn’t attend the meeting but some expressed surprise when they were later briefed on the details, said people familiar with the matter. Some Chinese experts said the estimates revealed in February were at the higher range among local peers. Mr. Hecker said he estimated North Korea could have no more than 12 nuclear bombs now, and as many as 20 next year. “Some eight, nine or 10 years ago, they had the bomb but not much of a nuclear arsenal,” he said. “I had hoped they wouldn’t go in this direction, but that’s what happened in the past five years.” The foregoing was extracted from a 23 April 2015 article in the Wall Street Journal written by Jeremy Page in Beijing and Jay Solomon in Washington.

North Korean leader Kim Jung Un tours a plant in Pyongyang that produces missile parts and other military supplies. PHOTO: RODONG SINMUN/EUROPEAN PRESSPHOTO AGENCY


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Strenghtening Your Knowledge with Simpson Strong-Tie by Tim Waite

Simpson Strong-Tie Company demonstrated several new concrete anchor and repair products at its annual workshop at Guam Community College on March 11 and 12, 2015. Over a hundred people from Guam’s construction and design community attended the workshop consisting of product solutions for Guam’s concrete anchoring, cracking, spalling, and repair needs. In addition to classroom training, the highlight of the workshop was live outdoor demos showing how concrete crack repair, vertical patch repair, fiber reinforced polymers (carbon fiber), and precision grouts are installed and how they actually perform in the field. New products were demonstrating highlighting Simpson’s expanding concrete solutions product lines. Together with Bosch Tool Company, an alliance partner, they demonstrated the broad line of tools available to work with concrete. Workshop attendees

12 | MAY2015

received a certificate of completion for taking the course, as well the ability to pick up continuing education units. The attendees took away product binders, several giveaways, and were treated to a hot catered lunch.

Strengthening Systems for Concrete and Masonry product guide features all of the new products and is available at www.strongtie.com/rps. To speak with a local Simpson representative, please call 671.689.6201.

This years instructors were Joel Frenzel, Territory Manager for Hawaii and Guam; Tim Waite, Sr. Territory Manager for the Pacific Region; Ken Bell, ICI Manager for the US Southwest Region; Roky Kriskovic, RPS and FRP Specialist for Simpson, and Vicky Zhao, Marketing Manager from Simpson’s Hong Kong office. The Simpson Strong-Tie line of repair, protection and strengthening systems for concrete and masonry includes a wide variety of new products, including repair mortars, FRP, grouts, epoxies, sealants and the FX-70® structural repair and protection system for repairing existing wood, steel, and concrete piles. The new Repair, Protection and




Do You Practice Cost-Avoidance with Your Inventory of Furniture? by Shawn Gumataotao GET, LLC received a great piece of advice from our partners at Savoy Contract Furniture that we wanted to share with you-practice cost avoidance by minimizing furniture repairs and replacements. From experience, Savoy Furniture has found that their respective customers experience a significant reduction in these costs with their durable, high quality residence hall and lounge furniture. From campuses to corporate offices, this practice of cost-avoidance through the implementation of revenue producing ideas attracts and retaining students and or repeat customer business. They ask that we all differentiate our office or housing facility with all new designs, and unique personalization options. Savoy Furniture takes it one step further by recommending that we provide our end users with the versatility to reinvent their respective spaces with stacking chests, loftable beds, and mobile furniture. Why is this important? Spending on quality furniture can pay off in years to come. according to The Wall Street Journal. In fact, the publication asserted in 2012 that buying top-grade pieces can be a good investment: good 14 | MAY2015

furniture, along with other home design elements, can last a lifetime and increase in value.

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Also, purchase a high-quality product which is easier to maintain than lowerquality furniture. You'll find high-quality furniture, at a variety of price levels, from a well established company with a good reputation.

4. Consider Your Brand’s Environmental & Social Reputation-Environmentally responsible solutions such as Forest Stewardship Council (FSC)-certified wood, bio-based foam and formadahyde-free finishes are very typical today. These are all great features; however, buying good quality furniture that performs well for many years might be the ‘greenest’ action of all, as it means less furniture goes to the landfill.

“Learn the history of the company from which you want to buy,” said Assistant Director of North Carolina State University’s Furniture Manufacturing and Management Center (FMMC) Steve Walker. Furniture manufacturer Shelby Williams released a report recently that stated that there are four things to take into account when investing in high-quality furniture. 1. Choose the Right Product for the Application - different applications require different products, so the way you operate your business should determine the furniture selection.

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degrees, and having served in the United States Army and United States Air Force, respectively, they decided to leave their jobs and return to their paradise home and open up a business focused on “professional services.” Their core business and ‘opportunity focus’ is in Professional Technical Services, which includes Program and Project Management, Risk Management, Configuration/Change Management, Logistics, and Strategic Planning, among other management related areas. They are currently considering bidding for a NAVFAC Service Disabled Veteran Owned Small Business Multiple Award Construction Contract (MACC).

Sometimes all you need to do is to roll up your sleeves, have a ‘can do’ attitude, and charge forward. Sometimes longevity and growth depends on a good plan. Sometimes it rests on luck. And then there’s that small percentage of both. The story of Galaide Professional Services Incorporated Guam has the charm of the Cinderella fairy tale, but with the heart of Hercules.

Albert Yanger, President and Co-founder of GPSI Guam fondly recalls the early days of GPSI Guam. “This was a very scary time for us because “no one” understood our vision…our intentions…or believed that a small company could perform the kinds of contracts traditionally performed by large, off-island companies,” Yanger recounted. “We absolutely proved them wrong.’

It always seems like a win-win situation when locally grown talent comes back home to accentuate, even augment and foster talent back home. GPSI Guam started as a conversation between two 1977 graduates of George Washington Senior High School and Guam Vocational Technical High School who were probably slightly mahalang (homesick). Stationed in the Washington, D.C. metropolitan area, Albert Yanger and Frankie Dumanal decided they wanted to come back home with the skillsets they learned in the military, federal government, and work as civilian contractors. With both their undergraduate and graduate In January 2012, Yanger and Dumanal added Chuck Rios, a 1978 John F. Kennedy High School graduate into their management/ownership mix. From working in a local hotel lobby to recently being awarded the Joint Region Marianas and NAVFAC Navy Occupational Safety and Health contract, the minds at GPSI Guam continue to work with the mindset that ‘failure is not an option.’ In an ever-growing, -expanding, and –varied industry like construction, it’s important to keep an open mind about projects. Sometimes it’s not a matter of getting the job, but just an opportunity for something greater. Their first contract was providing support for the Guam MACC Builders (GMB) for the Tango/Uniform Wharf Renovation on Naval Base. They were asked to assist in the acquisition and movement of $7M worth of steel from Japan to Guam. With no real background in ‘steel,’ they used project management best practices, created www.guamcontractors.org


MAY2015 | 17

a communication plan, and coordinated the transfer between all parties. Good planning usually leads to repeat business, and, even better, an expanded network of potential clients and future partners. For GPSI Guam, the project wasn’t just a win because of the project, it was also an opportunity to open doors for future projects. The GPSI Guam team doesn’t just see these projects as mere instances, but opportunities to expand, grow, and nurture talent. GPSI Guam also provides Project Management Support for the Guam Office of the Attorney General for the development of application software. Usually this work is contracted and performed by larger, off-island vendors, but through perseverance, and sheer will, GPSI Guam is demonstrating the talent pool, education, and incomparable quality of small businesses on Guam and throughout the region. “We want to grow our business on Guam and the region…then extend our little company to the continental United States…specifically Washington, D.C.,” said Yanger. He added that there is potential money there for the Department of Defense buildup on Guam. GPSI Guam’s goal: bring that money to Where America’s Day Begins.

18 | MAY2015

But, why ‘Galaide?’ Galaide are historically known to have been the fast boats the ancient Chamorros used to trade and travel. Yanger explained the owners all grew up fishing with a deep connection to Guam. “We chose the name Galaide as our ‘vehicle’ of commerce into Guam business…and she will serve as our vehicle into the Global marketplace.” On their website, gpsiguam.com, it states “Professionalism matters. Raising the bar. Locally-owned.” Their business plan, like most, lays out the goals of the company and road to profit. But these three phrases are more than that. They lay down the foundation set by the patriarchs of the business. Their upbringing, coupled with their service in the military, has paved their way for success. Though success is sometimes measured in dollar signs, it seems the minds of Galaide Professional Services, Inc. have made it a point to grow talent as well as a network of professionals through their list of projects. “We continue to support and seek opportunities within the Government of Guam and also in the commercial sector. We don’t consider anything off-limits . . . just opportunities,” said Yanger. With that kind of attitude, the only place else to go is onward and forward in the galaide they have built.






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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 over-looked or misunderstood topics by management and operators alike. By Dave Barnhouse

We have all witnessed an accident or near-miss involving a crane lift while using rigging gear. Crane operators must pass rigorous written as well as practical tests before being found competent to operate a particular type of crane. Riggers must also prove to be competent by testing. All rigging gear has a safety factor of 5:1, meaning the safe working load, or SWL, is one fifth the actual tested breaking strength. With these requirements one would think there should never be an accident caused by a rigging failure. Unfortunately there are rigging failure accidents and most likely more than most supervisors are aware of. Rigging accidents, most of the times, can be avoided provided one is vigilant and follows the best safety practices. From shipyards to construction sites, rigging plays a major role in all kinds of industrial and commercial activities. Without rigging, one cannot imagine moving heavy loads easily and quickly. No matter how much a load is over-sized and overweight, rigging services make it possible to relocate heavy loads in the most secured manner. In spite of following safety precautions and OSHA guidelines, lifting rigging accidents do occur at workplaces and result in severe injuries or property damage. Two major reasons I believe rigging accidents exist: ignorance and the ‘don’t care’ attitude. Both can and must be addressed with training and supervision. Most of my students attending a rigging class have years of experience rigging for your cranes on your job sites. Yet they are completely unaware of some very important issues regarding safe rigging practice, namely inspections and rating of gear, sling angle tension factors, proper hitch usage, and the importance of softener use on sharp pick-points.

26 | MAY2015

The 'soft sling' synthetic sling or round sling, is very much misused. We use the soft sling when lifting heavy parts to help safeguard an abrasion on the connecting part of machinery, it has a more flexible wrap on tension, unlike chain or wire rope, which tend to cut or bite in more aggressively regarding its lifting weight. The problem with riggers using soft slings is they use little or no protection on the connecting parts. Softeners are used not only to protect sling from cuts but also slippage at pick-points. Smaller sling angles will exacerbate this condition. Using flat slings of more than 4" width for angular lifts is dangerous, particularly on flat base sharp cornered materials, as the load at each pick point is not


equally distributed upon the full width but is concentrated more at the outer edges of the sling which can result in tearing apart the sling. It is recommended that in such cases the slings should be used vertically. In addition correct type of shackles must be used for flat slings as standard types are not suitable due to crimping or bunching. And who has not witnessed synthetic slings placed over the blades of a fork truck? Although the blades do not appear to be sharp, effectively the angle of the sling is 90 degrees off the blade, creating a cutting strain. If your company uses a forklift or telehandler for lifting suspended loads a hook attachment must be used. Also the operator is now more


than a forklift operator, he must be competent with rigging gear use. A recent survey conducted by a state- side crane and rigging training company, found that 81% of rigging accidents had involved synthetic slings. The survey made clear that synthetic sling accidents, typically categorized by cutting or abrasion, are due to the lack of sling protection utilized during a lift. But the nature of the type of rigging does not heighten or lower the risk, what really counts is the degree to which users are knowledgeable and competent to complete their lifting activities safely. This may very well be the number one most important factor in synthetic sling failure and riggers must evaluate each lift if needed. Riggers should be re-minded "If you have a synthetic sling in your right hand, you should have sling protection in your left." One example of importance of inspection of synthetic web sling and what can happen if the slightest tear on the sling exists and is permitted to be used for a lift. We have all used packaging tape, sometimes thinner than paper at 2-3 mils thick, to wrap a shipping box. How to you break or cut the tape to length? You simply put some tension on it and jab it with a pen. What results is a clean break right at the point of the jab. This is exactly what happens to a synthetic sling once tension is placed on it and there is a shock load on the sling. A shock load may result from one of many reasons and is another responsibility of the rigger, to make sure shock loading does not take place. This may happen if the signal person or rigger does not confirm all connection points before giving the operator the all-clear signal to hoist. A common occurrence is for a sling eye to come up on the side of the shackle body and actually start to pick the load, when the shackle up-rights itself there is a shock load created on the sling, rigging gear, as well as the crane. If there happens to be a damaged area of the sling, how-ever slight, when this shock load occurs, the sling may part.

riggers must consider when using a bridle sling is the angle created between horizontal and the sling. At 60° the tension on this sling will increase 15.5%. Not an enormous amount but at 30° (the lowest allowed), the tension will exactly double. What this equates to is as an example: Lifting a 10 ton load a rigger configures a 2-part bridle hitch at 30° angle between each sling leg and horizontal. Though each sling leg share of the 10 ton load will of course be 5 ton, the tension on each leg will be 10 ton. If the rigger would assume any 5 to 10 ton capacity sling would be sufficient, he would be overloading the rigging. The obvious solution to decrease the tension would be to use longer slings, increasing the horizontal to sling angle. But what lengths would be sufficient? The longer the better but there are limits in most cases, how much head room, what lengths are available, etc. The recommended sling angle is 60°, easily con-figured and assured by using the same length slings as the pick points are from each other. At 60° the tension would measure 5.775 ton as compared to 10 ton with 30° angles. The example hitch in photo #1 illustrates a lower sling angle than 30°, unsafe and an OSHA violation. Two factors may result in an accident in this example: First, with the low sling angle the tension on the slings has multiplied many times more than the weight of the load. Second, at any moment the sling on the hook tip may slide up and off the hook, resulting in a dropped load. Hook safety latches are only to secure unloaded slings on the hook, they cannot support a load. Also, by

tip loading the hook past 60° the hook may spread open, forcing it to be taken out of service. The #2 photo is example of using synthetic slings with no softeners. Though not visible in photo the top side where the sling is exiting the corner post fitting can be assumed to be as sharp as the side visible. Once tension is placed on this sling and the sliding motion drags the sling across the sharp edge it will most likely fail. Regardless, this is not a good hitch for lifting containers.

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 inspec-tor 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.

To exemplify a shock load and how dangerous one can be, consider this experiment to demonstrate: suspending a one lb. weight from a string with a scale in-line, lift the weight only four inches and release. The scale will jump momentarily to five lbs. This makes clear the importance of preventing shock loads as it increased the tension on the sling by exactly 5, the safety factor of all rigging gear, 5:1. Another area I find riggers are weak in which contributes to overloading any type of sling is the vertical to horizontal sling angle. What

Comprehensive inspections offered for heavy equipment, cargo containers, above-ground storage tanks, and structural welds Relevant heavy-equipment operator training: Rigging, cranes, excavators, forklifts, aerial lifts, bucket trucks, etc. OSHA safety training and onsite consultations Welder qualification testing www.guamcontractors.org


Accredited Maritime Crane Inspector per OSHA 29CFR1919

General Contractor contactus@islandcerts.org Tel: (671) 653-5501 MAY2015 | 27


Comparing Strategic Thinking and Strategic Planning

Strategic thinking and strategic planning are related, but they are two distinctly different activities. First, let’s look at the definitions. Strategic Thinking: Strategic thinking is an intensified exploration of strategy from new directions that create new concepts. It’s a thinking process, an exploration process, and a discovery process. Strategic Planning: Strategic Planning is a planning process that determines how the organization will operate by identifying the specific tasks, the schedule, and how to measure success. In simple terms, strategic thinking determines the “what” and strategic planning focuses on “how” to achieve the “what.” Contractors far too often make the mistake of jumping into the planning process too soon. They do this in part because they are more comfortable with planning. After all they have a great deal of experience planning projects. When contractors are handed a complete set of construction document it makes sense for the contractors to immediately being to plan how they will construct the project because the project has already been defined. However, that is not always the case. For example, on a design-build project the design-build team must start by strategically thinking about the project. In essence, they must define the project in terms of the client’s needs and budget. It’s not good enough to simply define a building in terms of some generic type. The design or the building’s definition must incorporate the client’s specific and often unique needs and how best to achieve them before anyone can begin to plan the construction process. In essence, the team must determine “what” needs to be built before moving on to “how” to build it. In other words, a good design doesn’t stop with a generic type of building, such as an office building but further defines the building around the specific needs of the client. Don’t be confused by the fact that during design-build efforts, both designing 28 | MAY2015

and planning go on at the same time, but the planning is restricted to the elements already defined. The team merely doesn’t wait until all designing is completed before beginning to work on the plan. When contractors create their business strategy, the same rules apply. Instead of describing a generic construction company, contractors must explore from a variety of perspectives what services they are selling, what makes their clients different, and how they differentiate themselves from their competition. Failing to take the necessary time to perform this critical strategic thinking and jump into the planning phase too soon usually result in the contractor just tweaking its current business plan. Instead of analyzing “what” it should be doing, the contractor merely extends what it has already been doing and simply adjusts some of the financial figures. Unfortunately, the figures tossed around are more of a wish than anything derived from any hard research or thinking. In the end, contractors that don’t differentiate themselves from their competitors usually end up competing on price; instead of value. Which is More Important: Strategic Thinking or Strategic Planning? It’s not a fair question because both are needed. It like asking which is more important, knowing where we are going or having a means of travel to get there? Of course, you need a means of transportation, but if you don’t know the destination you are completely lost. Peter Drucker has written that managers do things right while leaders to the right thing. This concept can be applied to companies also. The leading companies focus on doing the right things. In business terms that means they have the right strategy, which will only occur if they take the time to do the necessary strategic thinking. Of course, what’s needed is doing the right thing the right way. However, unless you start with the


right thing you have no hope of achieving that goal. Therefore, from that perspective, strategic thinking is more important because unless you first identify the right things to be done, you will remain stuck in the world of low-cost bidding. Even contractors forced to compete in the design-bid-build arena must have the right strategy. That enables them to compete based on their knowledge and experience to bring in a lower cost to win the bid, instead of just the lowest price. Peter Drucker wrote in The Practice of Management, “Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic functions; marketing and innovation.” Innovation is what allows you to differentiate your business from your competition and innovation comes from a thinking process, an exploration process, and a discovery process, just like strategic thinking. Daniel Pink wrote in The Whole New Mind, “For business, it’s no longer enough to create a product that’s reasonably priced and adequately functional.” In other words, today it’s essential for contractors to provide outstanding value by delivering better solutions for their clients and differentiating themselves by the value they deliver enabling them to avoid competing solely on price. This goal can only be achieved by first developing a sound strategy through strategic thinking followed a by the completion of a strategic plan on how to achieve the desired strategy. To learn more about strategic thinking and strategic planning go to http://ow.ly/LsAwI for books on strategic thinking and strategic planning by Ted.


30 | MAY2015



Electrical Drafter







2 17 0 1 1 0 10 0








1 4 4

0 0

Field Supervisor


Golf Instructor

Heavy Equipment Mechanic

Hvac Technician

Japanese Specialty Cook Landscape Gardeners Laundry Supervisor Les Mills Certified Instructor Machinist Marine Maint. Machinist Marine Maint. Mechanic MRI Technician

Massage Therapist

Motor Rewinder

Nursery Worker

Painter,Transporter Equipment


Quality Inspectors

Radiologic Technician

Restaurant Manager Refrigeration & AC Mechanic

Shipfitter Sous Chef

Scuba Dive Instructor

Welder Welder - Fitter


Electric Motor Repairer

0 2 1 1 1 1 1 1 1 3 5

Elevator Installer Chef Spa Supervisor - Trainer Biomedical Equipment Specialist Automotive Mechanic Baker Mechanic Auto Body Repairer Tech. OSH Instructor Buyer HVAC Mechanic AC Maintenance Tech

Total Non-Construction H2-B Workers



Maintenance Electrician

Elec./ Electronic Service Tech




Baker Master



2 4 31

Wedding Service Attendants





Heavy Equipment Mechanic


Tower Crane Operator

TOTAL Construction H-2B Workers

Total OTHER Construction

31 1012



Project Manager




Project Supervisor




HVAC Mechanic




Foreman General Maintenance & Repairer




Field Supervisor


Electrical Power Lineman



Architectural Drafter Civil Engineer


AC& Refrigeration Mechanic

Other Construction Occupations

Employers Workplace Monthly Report Statistics

Ultrasound Technician

Baker Mechanic

Specialty Cook Training & Dev. Specialist

Other Non-Construction Occupations

2 12 1

Auto Repairer Baker

GUAM DEPARTMENT OF LABOR Alien Labor Processing Certification Division

60 4


Electrician Camp Cook Total Common Const.

1159 12 8 2 2 1183


6.12% 0.41%


Sheetmetal Worker

Reinforcing Metalworker Structural Steelworker Plumber


Cement Mason




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

Camp Cook Grand Total H2B Workers







Common Construction Occupations






Japan 0.68% Kiribati 0.17% UK 0.17%

Heavy Equip. Operator Electrician

Total U.S. Workers


Philippines 97.97%

Korea 1.01%

H-2B Population by Nationality








US Workers vs. H-2B

Grand Total H-2B Workers


40 87

Non-Construction Total H-2B Employers

Total U.S. Workers



Employers By Industry

Philippines Korea Japan Kiribati United Kingdom Total by Nationality

Workers by Nationality



12 15

387 110

Heavy Equip. Operator

Plumber Sheetmetal Worker

Structural Steelworker

Reinforcing Metalworker


Common Construction Occupations 373 Cement Mason

MONTH ENDING: February 2015

gives back to the community.


GCA Construction Index GCA Apprenticeship Registrations 40 35 30 25 20 15 10 5 0

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15

DOD Contracts

Building Permits $400,000,000


$250,000,000 $200,000,000

$250,000,000 $200,000,000









$100,000,000 $0

$100,000,000 ‘01‘02‘03‘04‘05‘06‘07‘08‘09‘10‘11‘12‘13‘14

Construction Employment 8,000


Statistics provided by Guam Department of Labor, Bureau of Labor Statistics; Guam Contractors Association; and the GCA Trades Academy.

7,000 6,000

H2 Labor

5,000 4,000


3,000 2,000 1,000 0

‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14

‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14

32 | MAY2015


1500 1000 500 0

‘01 ‘02 ‘03 ‘04 ‘05‘06 ‘07‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 www.guamcontractors.org

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