GCA Construction News Bulletin June 2017 by Geri Leon Guerrero

VOL. 58 ISSUE 6 JUNE 2017 • GUAM CONTRACTORSʼ ASSOCIATION

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TABLE OF CONTENTS

CONSTRUCTION NEWS BULLETIN

JUNE S.A.M.E.

INSIDER NEWS

Military news

FEATURE STORY

PHOTO HIGHLIGHTS

Crane critique

small business

Member benefits

REPORTS/INFORMATION

2017

Feature Story

20 Feature Story

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EDITORIALS

CONSTRUCTION NEWS BULLETIN

THEDIRECTORS

THEEDITORIALS

THETEAM

PRESIDENT James A. Martinez Guam Contractors’ 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 William Beery Tutujan Hill Group

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.

CHAIRMAN Conchita Bathan Core Tech International VICE CHAIRMAN John Robertson AmOrient Contracting SECRETARY/TREASURER Mark Mamczarz Black Construction Corp

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.

CONTRACTORS DIRECTORS: Joe Roberto East Island Tinting Peter Errett Hawaiian Rock Products

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.

Jessica Barrett Barrett Plumbing Rick Brown Pernix Guam LLC

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

Zenon Belanger ARS Aleut Remediation ASSOCIATE DIRECTORS: Jeffrey Larson TakeCare Asia Pacific

PRODUCTION TEAM LEAD: Geri Leon Guerrero AD SALES: Jaceth Duenas PRODUCTION: Jason Davis Christopher “Taco” Rowland PHOTOGRAPHERS: Christopher “Taco” Rowland Jaceth Duenas EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson R.D. Gibson John Aguon Catherine Cruz Norton Albert Sampson Dave Barnhouse GCA STAFF: Desiree Lizama Elaine Gogue Ann Marie Pelobello COVER: GCA Trades helping to train tomorrow’s workforce.

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

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S.A.M.E. UPDATE

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Society of

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GUAM REPRESENTATION IN HONOLULU AND WASHINGTON

will be initiated will besoon. initiated It is soon. estimated It is that estimated thatthe regional the regional another $40,000 anotheris$40,000 needed for is needed near term for legal near term commands) legal commands) expense. expense. and to DCand to DC to visit theto visit the The Munitions The Munitions and Explosives and Explosives of Concernof Concern Pentagon Pentagon (MEC) issue (MEC) is causing issue is significant causing significant additionaladditional as well as as well as time and expense time andbased expense on current based on methods current methods Capitol Hill Capitol Hill being employed being employed on militaryonprojects. militaryOn projects. Onto advocatetofor advocate for 15 May 2017, 15 May the GCA 2017, presented the GCA presented a White a White more military more military Paper to NAVFAC Paper to NAVFAC Marianas and Marianas OICCand OICCinvestmentinvestment Marine Corps Marine providing Corps providing recommendations recommendations into Guam, into Guam, on a possible on away possible forward. way It forward. includesItthe includes the not only for not only for perspective perspective from the General from the Contractors General Contractors the benefit the of benefit of By John M. Robertson point of view point and ofthe view MEC and the Specialist MEC Specialist our economy ourthrough economyconstruction through construction and job and job Contractors Contractors point of view. pointAs of would view. be As would becreation but creation also forbut regional also forand regional national and national The GuamThe business Guamcommunity business community is represented is represented expected, the expected, two arethe quite twodifferent. are quite different. The The security. security. in Honolulu in and Honolulu Washington and Washington DC each year DCby each year by Executive Executive Summary Summary provides a provides commona common a delegation a delegation from the Chamber from the of Chamber Commerce of Commerce approach with approach eightwith recommendations eight recommendations on on From timeFrom to time time people to time have people calledhave these called these Armed Forces Armed Committee Forces Committee (AFC). They (AFC). have They have approachesapproaches that will provide that will greater provide clarity greater clarity trips junkets trips butjunkets it’s important but it’s important to point out to point out been very effective been veryineffective influencing in influencing policy in policy in for all concerned for all concerned and reduceand thereduce time and the time and that all of that thesealltrips of these have trips been have self-funded been self-funded relation to relation Guam and to Guam especially and the especially military the military cost of execution cost of execution for the military. for the A military. forum A forum by those traveling. by those The traveling. Chamber The only Chamber pays only pays side of the side Guam of the economy. Guam economy. This is based This onis based on is plannedisfor planned later infor June later between in Junethe between the for the expenses for theof expenses the president. of the president. The only The only strong personal strongrelationships personal relationships that have evolved that have evolved military and military Guamand Contractors Guam Contractors Association Association other expense othertoexpense the Chamber to the is Chamber a dinneris a dinner over the years overby theGuam years business by Guampersons business persons to explore to and explore hopefully and bring hopefully about bring a more about a more with Guam’s with Congresswoman Guam’s Congresswoman and a couple and a couple with no direct withbusiness no directties business with the tiesmilitary with the military efficient MEC efficient process. MEC process. of her staff.of her staff. – meaning–nothing meaning tonothing gain personally. to gain personally. The The annual door-knock annual door-knock is something is something practiced practiced Many thanks Many to the thanks Chamber to the of Chamber Commerce of Commerce This year the Thistravel year team the travel was made team up wasof: made up of: by American by American Chambers Chambers of Commerce of Commerce Armed Forces Armed Committee Forces Committee and the individual and the individual • Catherine• Catherine Castro, President, Castro, Guam President, Chamber Guam Chamber (AmChams) (AmChams) from various from cities various around cities thearound the travel teamtravel members team for members presenting for presenting these these of Commerce of Commerce globe and the globe Guam and the AmCham Guam AmCham has enjoyedhas enjoyed two key issues two key to decision issues tomakers decision at makers Pacific at Pacific • Jeff Jones• of Jeff Triple JonesJ and of Triple Chairman J and Chairman of the of the some of thesome bestof results the best from results thesefrom missions. these missions. CommandCommand and the Nations’ and theCapital. Nations’They Capital. TheyArmed Forces Armed Committee Forces Committee have permitted have permitted us to include us to below include the below Trip the Trip • Jim Adkins, • JimEast Adkins, West Enterprises East West Enterprises The two most The important two most important issues taken issues to the taken to the Report as Report presented as presented by Jeff Jones by at Jeff a special Jones at a special • Lee Webber, • LeeMDA Webber, DiveMDA Station Dive Station Pacific Command Pacific Command and Washington and Washington DC this DC this AFC meeting AFConmeeting 26 Mayon 2017. 26 May 2017. • Joe Arnett, • Joe Deloitte Arnett, & Deloitte Touche & Touche year are most yeardirectly are most affecting directlymembers affecting of members of • Phil Santos, • Phil Matson Santos, Navigation Matson Navigation the Guamthe Contractors Guam Contractors Association Association but others but others 2017 AFC2017 Hawaii AFC and Hawaii DC Trip andReport DC Trip Report • John Thomas • John Brown, Thomas Jones Brown, & Guerrero Jones & Guerrero as well. They as well. are H-2B They and are H-2B MEC.and MEC. • Gerald S.A. • Gerald Perez,S.A. former Perez, Director former GEDA Director GEDA The AFC was The founded AFC wasnearly founded 20 years nearly 20 years The H-2B The visa H-2B issue isvisa being issue dealt is being with dealt from with from outstarted as usualout byasmeeting usual bywith meeting the with the ago in response ago intoresponse the 1995toBRAC the 1995 (Base BRAC (BaseWe startedWe multiple lines multiple of attack linesbut of attack withoutbut notable without notable local commands here in Guam. here First, in Guam. we First, we Realignment Realignment and Closure) andCommission Closure) Commission local commands success to date. successIt to hasdate. beenIta has priority beenfor a priority GCA for GCA met with Admiral met withChatfield Admiral and Chatfield Captain andJeff Captain Jeff which resulted whichinresulted the closing in the of Guam closingShip of Guam Ship for over 18for months over 18 and months no oneand at Homeland no one at Homeland Grimes and Grimes then we and met then with weGeneral met withCox General Cox Repair Facility Repair and Facility Naval and Air Naval StationAir (Tiyan) Station (Tiyan) Security orSecurity U.S. Citizenship or U.S. Citizenship and Immigration and Immigration and Steve Wolborsky and Steve Wolborsky (Taz). We (Taz). also met We also met and reduced and the reduced Military thefootprint Militaryand footprint assets and assets Services appear Services to be appear listening. to be The listening. Class The Class with Colonel with Brett Colonel Bien Brett of theBien Marine of the Corps Marine Corps in our community. in our community. A few businesspeople, A few businesspeople, Action lawsuit Action appears lawsuit to appears have thetobest have chance the best chance withfinally General withLeon General Guerrero Leonof Guerrero of including Jim including AdkinsJim (the Adkins only one (thewho onlyisone who and is finallyand of success and of success we areand stillwe waiting are still forwaiting action for action the National theGuard. National The Guard. purpose The ofpurpose these of these still active still in the active AFC) in the andAFC) Admiral andGreenert Admiral Greenert at the Federal at the District Federal Court District in Guam. Court in This Guam. This was meetings a courtesy was atocourtesy let themtoknow let them know (the admiral (the here admiral at thehere time)atdecided the time) todecided be to meetings be is proving is costly proving and costly many members and manyare members are about our travel about plans our travel and make plans sure and make we aresure we are proactive and proactive do something and do something about it rather about it rather contributing contributing generouslygenerously to the cause. to the Wecause. have We have up to date up andtoondate theand same onpage the same as to what page as to what than just sit than around just sit andaround hope we anddidn’t hopeget we didn’t get collected and collected spent approximately and spent approximately $85,000 to$85,000 to is going oniswith going theonlocal withcommands the local commands and and “BRAC’d”“BRAC’d” again. Since again. that Since time, that the AFC time, the AFC date on legal date fees onand legala new fees and fundraising a new fundraising effort effort how we canhow bestwework can together best workwith together with has made annual has made trips annual to Hawaii trips to (toHawaii visit (to visitdetermine determine 8 | JUNE2017

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We accomplished We accomplished this by splitting this bythe splitting group the group the H-2B workers the H-2B in workers Guam vsinthe Guam US and vs the why US and why a One Guam a One approach Guam for approach the mutual for the benefit mutual benefit into into two so we teams could socover we could morecover more it was so crucial it was to sothe crucial Buildup to theand Buildup our entire and our entire of the civilian of the andcivilian military and communities military communities here. here.two teams territory. territory. economy. economy. • We talked • We about talked the difference about the difference between between Before we Before left we we alsoleft met wewith alsoGovernor met with Governor U.S.workers Seasonalvsworkers Guam skilled vs Guam skilled to Phil Santos’ to Phil fitbit Santos’ we walked fitbit we walked U.S. Seasonal Eddie Baza Eddie CalvoBaza – especially Calvo – especially after his after hisAccordingAccording trade workers. trade workers. over 24 miles overin24DC miles (9 of inthose DC (9miles of those in one miles in one commentscomments about his support about his forsupport the Build for the Build • We recruiting discussed recruiting from the US from vs the US vs day!). day!).toNeedless say, we covered to say, we a lot covered of a lot of • We discussed Up. (GoodUp. thing (Good too,thing basedtoo, on questions based on that questions thatNeedless from the Philippines. from the Philippines. PrevailingPrevailing wages / wages / territory and territory had face andtime hadwith face time a lot of with people a lot of people arose) arose) distance family from / living family standards / living standards / / that help make that help decisions makeand decisions form policy. and form policy. distance from transportation / estimated/ estimated 3 to 4 times 3 to the4 times the ourDuring meetings, our meetings, we asked (as wealways) asked (as always) transportation Our trip started Our trip in Hawaii started in onHawaii April 20 on-21 April 20 During -21 cost of H2cost workers of H2IFworkers we could IFeven we could get even get for continued for continued support of support the Realignment of the Realignment of of where we had where 5 meetings we had 5 with meetings the regional with the regional them to come. them to come. Marines from Marines Okinawa fromto Okinawa Guam and to Guam support and support commands: commands: •inWe were•asked We were whyasked we hadn’t why we developed hadn’t developed for theconstruction Military construction investments investments in • We met with • WeU.S. met with Pacific U.S. Command Pacific Commandfor the Military our own workforce our own workforce and pointed and out pointed that out that the upcoming budget . budget . (PACOM)(PACOM) – Major General – MajorKevin General Kevin the upcoming Guam construction Guam construction trade labortrade is 9%labor or ofis 9% or of Schneider,Schneider, Chief of Staff Chief and of his Staff team and his team our workforce while in the while US in andthe Hawaii US and Hawaii Most timeofwas ourspent time was discussing spent discussing the theour workforce • We met with • WeU.S. met with Pacific U.S. AirPacific Force Air Force Most of our it is only 4%. it isDeveloping only 4%. Developing a work force a work vs force vs three mostthree pressing mostissues: pressing issues: (PACAF) (PACAF) – Major General – MajorMark General Dillon, Mark Dillon, importing:importing: Peaks and Peaks Valleys. and Valleys. First andwas foremost the H-2B was visa the H-2B issue. visa issue. Vice Commander Vice Commander & Maj Cody & Maj Gravitt Cody & Gravitt• First & and•foremost • We explained that the SEIS that forecasted the SEIS forecasted • Second was • Second MECwas – (Munitions MEC – (Munitions & & • We explained team team how muchhow labormuch we would labor need we would and noted need and noted ExplosivesExplosives of Concern) of and Concern) the costs andand the costs and • We met with • WeU.S. met with Pacific U.S. Fleet Pacific Fleet that a largethat percentage a large percentage would havewould to be have to be delays associated delays associated with the current with the clearance current clearance (PACFLEET) (PACFLEET) – Admiral–Phillip Admiral Sawyer Phillip Sawyer H-2B laborers H-2Bsolaborers it should sobe it should no surprise be no surprise method required methodbyrequired the Military. by the Military. and Captain andMike Captain Ballou Mike (both Ballou formerly (both formerly • And finally, • And Thefinally, US Fish Theand USWildlife Fish and Wildlife to anyone.to anyone. stationed on stationed Guam)on Guam) • We pointed • We out pointed that even out without that eventhe without the issue as it pertains issue as ittopertains the 4 toto 1 recovery the 4 to 1 recovery • We met with • WeU.S. met with ArmyU.S. Pacific Army Pacific buildup webuildup need H-2B we need workers H-2B- With workers the- With the habitat for endangered ratio for endangered species - over species - over (USARPAC) (USARPAC) – Major General – MajorCharles General Charles habitat ratio buildup webuildup just need wemore. just need more. are set acres aside areatset Andersen aside at Andersen AFB AFB Flynn, Deputy Flynn, Commanding Deputy Commanding General General 5000 acres5000 • We discussed • We how discussed the lack howofthe H2lack workers of H2 workers for speciesfor that species will never that will return never (Guam return (Guam • And last •but And notlast least, but we notmet least, with weMarine met with Marine was affecting wasbusiness affectingexpansion business expansion / housing / housing only at now theonly DC at zoo) the DC zoo) Corps Forces, Corps Pacific Forces, (MARFORPAC) Pacific (MARFORPAC)Rail, now Rail, prices / Hotel prices development. / Hotel development. – Lt General – LtDavid General Berger, David Col Berger, Craig Col Craig in our found meetings in ourwith meetings the Hawaii with the Hawaii Ullman and Ullman LTColand Tegan LTCol Owen Tegan Owen We found We After saidalland wasdone, said and we really done,didn’t we really didn’t Commands Commands and the Pentagon and the that Pentagon most that most After all was get any push getback any push on theback H2on issue, the in H2fact issue, I in fact I everyone was everyone aware was and aware prettyand wellpretty briefed well briefed From Hawaii From weHawaii made our we way madetoour DCway on to DC on believe we believe have a lot we of have support a lot of forsupport a legislative for a legislative on alltoof the onabove all of issues. the above There issues. wereThere a couple were a couple April 23rdApril and had 23rdmeetings and had from meetings the 24th fromtothe 24th fix to the H2 fix to problem. the H2 problem. exceptionsexceptions but we were butable we to were clarify ablesome to clarify some the 28th ofthe April. 28th of April. misperceptions misperceptions and the H-2B and issue. the H-2B (especially issue. (especially Two of theTwo mostofimportant the most important meetings on meetings on concerning concerning the CNMIthe confusion). CNMI confusion). During those During 5 days, those we 5had days, 28 we meetings; had 28 meetings; 5 at 5 at this issue Ithis feelissue was with I feelCord was with Sterling Cord the Sterling the the Pentagon, the Pentagon, 21 on the Hill, 21 on1the at Navy Hill, Yard 1 at Navy Yard On the Hill On however, the Hillwe however, spent 90% we spent of our90% of our Deputy Staff Deputy Director StaffofDirector Senate Armed of Senate Armed and 1 at Department and 1 at Department of Homeland of Homeland Security Security time talking time about talking the H-2B about matter the H-2B andmatter had toand Services had to Committee Services Committee and Ms Ramona and MsMcGee Ramona McGee (more on that (more meeting on thatlater). meeting later). explain to most explain people to most the people difference the between difference between Legal Counsel LegaltoCounsel the Committee to the Committee of the of the Judiciary (subcommittee Judiciary (subcommittee on Border on Security Border Security and Immigration) and Immigration) both of which bothfelt of which that felt that there would there be support would be this support time around, this time around, especially if especially it was tied if ittowas National tied toDefense National Defense and Security. and The Security. reasonThe I feel reason theseI meetings feel these meetings were most were important most important is that last isyear thatwhen last year when Congresswoman Congresswoman Bordallo tried Bordallo the legislative tried the legislative fix for the fix H-2B for issue the H-2B in theissue NDAA in the (National NDAA (National Defense Authorization Defense Authorization Act), it wasAct), passed it was passed in the House in the butHouse it was stripped but it wasaway stripped in away in the Senatethe version Senate during version conference during conference due due to jurisdictional to jurisdictional concerns by concerns the Senate by the Senate Judiciary Committee. Judiciary Committee. So now it looks So now likeit looks like the SASC the andSASC Judiciary andmay Judiciary be supportive may be supportive of of the legislative the legislative fix. If so we fix. areIftold so we it would are told it would probably beprobably in the Fall be in at the the Fall earliest at the when earliest the when the legislation legislation would be passed would and be passed signedand intosigned into law. law. In Hawaii - Left to Right: Jim Adkins, Gerry Perez, Catherine Castro, Lee Webber, Maj. Gen Mark Dillon, Jeff Jones, Joe Arnett and Phil Santos Like Us On Facebook

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Of course Of we course are talking we are about talking DC about and DC and anything could anything happen could buthappen we arebut stillwe are still JUNE2017 | 9

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optimistic and still engaging in the issue as often as possible. In fact, there was to be an H-2B task Force meeting the same afternoon at Adelup chaired by the LT Governor and the Director of Labor. The Chambers’ AFC will attend and we will be sharing information from our trip with them as well. This issue will continue to remain at the top of our agenda and priority list until it is resolved. One of the other subjects that came up during our trip was the need for more capability in Ship Repair. This matter came up both in Hawaii as well as DC and the Chamber AFC will continue to do what we can to advocate and network to see how we can make this happen.

On Capitol Hill, Left to Right: Jim Adkins, Phil Santos, Jeff Jones, Lee Webber, Catherine Castro, John Thomas Brown and Joe Arnett

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By Catherine Cruz Norton Naval Facilities Engineering Command Marianas Public Affairs Office

NAVFAC MARIANAS

Navy Renews One-Guam Commitment at Island Sustainability Conference; Discusses Sustainable Utilities ASAN, Guam - Working to create a healthier, more robust ecosystem for Guam, Navy officials recently celebrated a milestone in their efforts to revive the dwindling bird population of Micronesian starlings. The Micronesian Starling Nest Box Project, which began 15 months ago on Andersen Air Force Base (AAFB), aims to increase the population of Micronesian starlings on Guam. In November 2015, a team of researchers and Naval Facilities Engineering Command (NAVFAC) Marianas scientists installed nest boxes on utility poles on AAFB, and the first starling eggs were found laid in these boxes sometime in March 2016. In May 2017, the team identified a total of 206 starling chicks that were grown enough to fly from the safety of their nest boxes. "We believe we have made a huge step in growing birds," said Julie Savidge, professor in the Department of Fish, Wildlife and Conservation at Colorado State University (CSU) and one of two principal investigators in the project. "Everybody is really excited about that." Micronesian starlings - one of only two remaining native forest bird species on Guam - are the subject of this project that provides them with brown tree snake-resistant nest boxes on AAFB. This baby bird boom occurred over the course of more than a year with no sign of interference from brown tree snakes, which are responsible for the decimation of the bird population. While the number of Micronesian starlings in Guam before the nest box program is not known, it is thought to be less than 500, according to Savidge. The starling population prior to the introduction of the brown tree snake is also

not known, but was described in historical accounts as common to abundant. "That would mean you could basically find them throughout Guam," Savidge said. "I think that if you went out for a drive, you would see them. Now, you have to know where to look to be able to find that species." In addition to restoring the populations of a native bird species for cultural and aesthetic reasons, indications are the starlings have a positive impact on the island's forests based on related research the team did on Micronesian starlings in Saipan in collaboration with a team from Iowa State University (ISU) focusing on vegetation. The two universities are studying the impact of losing fruit dispersers because of predation by brown tree snakes, in a project funded by the Strategic Environmental Research and Development Program (SERDP). "We learned in Saipan that Micronesian starlings are one of the very best fruit dispersers of native forest tree species," Savidge said. "They eat a variety of fruits and they disperse them pretty far. They're dispersing them into degraded forests too, which could help restore forests." Savidge said this species has the potential for being really important to helping maintain and restore Guam's forests. 2-2-2 NAVFAC Marianas Achieves Milestone "I am really happy with the success of this project," said Shermaine Garcia, natural resources specialist, 36th Civil Engineer Squadron environmental division. "I believe the research being done with starlings will contribute greatly to the development of

future bird conservation strategies and forest enhancements plans." Currently, a total of 72 nest boxes have been installed on AAFB to support this project, and environmentalists believe its usefulness may extend beyond the starlings. "Tree snake exclusion devices developed for this project may be helpful in bringing back the Micronesian kingfisher, a federally endangered bird that has been extirpated from Guam," said Jim Watkins, conservation program supervisor, 36th Civil Engineer Squadron environmental division. "Because starlings and kingfishers both nest in cavities, there is hope that success with starlings can also benefit the return of kingfishers." The next step for the research team on Guam is to determine what happens to the starlings after they have fledged, or have flown from their nest boxes. To do that, team members have begun to attach colored bands to nestlings in the bird boxes. In the coming months, as researchers record sightings of banded birds that have grown, they hope to be able to determine more about the birds' lives, including how well they survive away from the protected nest boxes, and whether they return to the boxes to nest. The team also plans to attach transmitters to a smaller number of the birds so they can be tracked by telemetry. This may provide more data about the starlings' real-time location and habits.

A snake-resistant nest box provided for Micronesian starlings sits on a utility pole on Andersen Air Force Base. More than 200 starling chicks have hatched in protected nest boxes on Andersen since March 2016 as part of the Micronesian Starling Nest Box Project funded by the Navy. (NAVFAC Public Affairs Office/Released)

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small biz notes • Fargo Pacific, Inc. was awarded a $597,000 task order to replace/reroute water lines on Naval Base Guam. • GSI Pacific Inc. was awarded a $1,052,932 task order to make facility energy improvements at several buildings on Naval Base Guam.

• Pacific Industrial Coatings was awarded a $349,098.00 task order to provide miscellaneous repairs and upgrades to increase energy efficiency for several buildings on Naval Base Guam. • Tikigaq Construction, LLC was awarded a $693,156.00 task order to provide a back-up cooling tower and water-cooled centrifugal chiller units on Naval Base Guam. • About $52.6M was awarded to Small Business (SB) concerns on Guam for a wide variety of products and services through May2017. Breakdown of awards: $44.9M - Small Disadvantaged Businesses (SDB) $21.5M - HUBZone Small Businesses (HZ) $6.0M - Women-Owned Small Businesses (WOSB) $5.0M - Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

The figures above do not add up to the overall Small Business total ($52.6M) as some small business concerns may fit multiple categories. For example, a SDVOSB may also be HZ and SDB. Source: Federal Procurement Data System Next-Generation (FPDS-NG).

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AC Ma rianas, 36t h Representatives from NAVF Mi lita ry Sea lift the and on, Contract ing Squadr tractors such as Command as wel l as prime conck Const ruction Bla tts, Wa DZSP21, Contractnst ruction Corporation, and Granite Copotent ial prime and s cus dis l Company Guam wil to expect in the last subcontracting opport unities 7. 201 r qua rter of Fiscal Yea

Speakers include: tracting Officer, 36th TSgt Theresa Hochstein, Con Contracting Squadron Officer, NAVFAC Ms. Norma Borja, Contracting Marianas t Specialist, Military Ms. Rosar io Hocog, Contrac nd Sealift Comma Officer, NAVFAC Mr. Jake Punza lan, Contracting Marianas Officer, NAVFAC Mr. Da nte Ser neo, Contracting Marianas all Business Programs, Mr. Al Sampson, Office of Sm as NAVFAC Marian t Manager, DZSP21 Ms. Lori Santos, Procuremen iness Liaison Officer, Bus all Sm ta, Ma a rett Ms. Lo Contrack-Watts sing Agent, Black Ms. Dawna Balgame, Purcha n atio por Cor Construction Construction Company Mr. Kevin Krueger, Granite Guam

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wanted:

a few good men and women (to join our Committee)

The GCA Small Business Committee supports small business members of the association to ensure their voices are heard and needs are met within GCA capabilities. Do you have an issue or concern that we might be able to assist you with? Do you have an idea or suggestion that may benefit our small business community? Help us help you by joining us at our monthly meetings or contact: Mr. Lysander “Al” Starr (Chair) Tel: (671) 647-7870 or email islaroofing@guam.net Ms. Jane Ray (Co-chair) Tel: (671) 735-2595 or email jane@pacificsbdc.com Ms. Gerardine Mendiola (Co-chair) Tel: (671) 647-2895 or email gmendiola@guamptac.com

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JUNE2017 | 13

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Build Your Destiny By: R.D. Gibson

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t seems like a scene out of an inspirational movie or motivational novel. As cliché as that might sound, the only way to think about it is the motivation, support, and hard work that culminated in a graduation. Balloons, caps and gowns, “Pomp and Circumstance” – the whole shebang on display for family members, loved ones, administrators, educators, but above all else – the students. Graduation season is coming to a close. The University of Guam Fieldhouse, the Father Dueñas Memorial School Phoenix Center, various hotel ballrooms, school gyms, and even churches house the faded echoes of cheers, screams, and possibly foghorns. But, what is left behind is more than that a sense of accomplishment, the prospects of the future, and the scary, yet exciting uncertainty of the future. A college degree might not always be in the cards. The military dreams of some might not work out. However, skills are important to have, foster, and nurture in an environment dedicated to the success of all students. Over 50 students from J.P. Torres received their necessary credits and diplomas on June 1, 2017. Among them, ten students confidently accepted their diplomas and certifications from the GCA Trades Academy. It was a successful pilot program to say the least giving students not just an expanse of general knowledge, but Construction Craft Laborer experience and certification. You see, before J.P. Torres became a success academy, it was known as an ‘alternative school’. According to Guam Department of Education Superintendent Jon Fernandez, it was a facility where middle school and high school students would be able to work through their behavioral issues, which were rooted in the school they came from. However, after reviewing the program, it seemed students were not able to successfully acclimate back to their ‘home schools’. These ‘home schools’ include the high schools on the island. “It seemed as if J.P. Torres had become a type of ‘waystation’ for students who would eventually drop out or be withdrawn from school,” said Fernandez. But, through conversations with former J.P. Torres students, he discovered students were not that Like Us On Facebook

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interested in returning back to their ‘home school’; they liked the smaller setting where teachers knew them individually – ‘teachers know my name’; and that individual support allowed for academic attention some students need to thrive. He elaborated that sending students back to their ‘home school’ could reintroduce students back to the wrong crowds and even brand them as students of J.P. Torres – something that had a prevalent stigma attached to it. J.P. Torres Success Academy students range from 17 to 21-years-old and their school year allows for students to earn nine credits as opposed to the six credits at other high schools. These are students at-risk of not graduating without the necessary credits from their respective ‘home schools’. “Administration and teachers work collaboratively to ensure high levels of learning and standards are met while being flexible to the needs of each student,” according to J.P. Torres Principal Dexter Fullo. It comes with frequent and constructive observations by administrators for educators to incorporate best practices for each student’s success. This includes a real connection to and collaboration with students, teachers, and administrators. Principal Fullo said that feedback regarding the GCA Trades Academy is generally “very positive.” The collaboration between different students, the friendly competition amongst students, and intense interest in the program has led the educators to believe that this program is not just beneficial academically, it changes lives. “They enjoy the adult learning environment,” said Fullo. When students are excited about the ‘real world’ aspect of learning, the motivation is there. “They were willing to give up their breaks and stay focused on the task,” commented Fullo. According to Elizabeth San Nicolas of the GCA Trades Academy, the agreement between GCA Trades Academy and the GDOE is providing an alternate credit recovery. “For every 90-hours met with GCA Trades Academy, students will receive a .5 credit,” she affirmed. Additionally, she says the carpentry classes that are offered are nationally recognized by USDOE. “We have a huge success

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JUNE2017 | 17

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rate with the students selected by GDOE for the program.” San Nicolas stated that in a meeting with Deputy Superintendent for Curriculum and Instruction, Joseph Sanchez, the Construction Craft Laborer classes were born. While students would be recovering credit, they were also learning basic skills in the construction industry like electrical, forklift operations, and carpentry. With the augmentation of their skills and the support from community organizations like GCA Trades Academy, graduates from the JPTAS program have already turned in applications to local companies seeking employment. “When taking our classes [students] feel more empowered when they have the knowledge in order to do and complete a given task,” said San Nicolas. “Without skilled workers, we will not have quality work.” With the departure of ten graduates, there are currently eight students in the partnership that molds school environment and real-world application. During their time in the program, students learn various skills including “working with carpentry, masonry, wielding, heavy equipment safety and operation, and safety.” This partnership allows for students to work with their hands and gain a real-world perspective on work. Fullo mentioned, “For many of our students, and their unique learning needs, it is very beneficial for

18 | JUNE2017

them to have hands on training as it is important for other measurements of assessing mastery.” He elaborated that having hands-on training has students participate in their learning. “Many of our students are kinesthetic learners,” he added. Additionally, he mentioned the importance of ‘literacy and numeracy’ that goes along with almost all jobs. “At JPTSA, we thrive to differentiate the learning of students based on their strengths,” stated the principal. This concept of non-traditional, hands-on public education partnerships is not a new idea though. It also becomes a larger issue altogether with a labor shortage affecting the entire industry throughout the United States. In an article written by Kim Slowey for ConstructionDive.com, she points to a growing need of certified and licensed professionals in the construction workforce, especially retiring workers. Slowey then discusses high school and career technical and vocational training in Oklahoma. Autry Technology Center’s 29 technical centers serve the state’s 400 school districts. Their program gives juniors and seniors the opportunity to split their day between regular school and a center. It’s also free of charge to any high school-aged student in the district according to the article. However, beyond the work happening in the technical centers, construction instructors are

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learning from industry insiders and business leaders about what is necessary in the community to expand the job market with training opportunities. This gives them the opportunity to adjust their programs to teach students skills that are necessary in the job market. In addition to the “CareerTech” work done in Oklahoma, students in the nation’s capital are building micro-homes. Builderonline.com included a Washington Post article about students at the Academy of Construction and Design at IDEA Public Charter School. The home will be sold for upwards of $50,000 and the proceeds will go back toward similar projects and construction student mentorship programs. Fullo explained, “When a student hears the word “construction” they automatically assume they will be on the road laying down asphalt or laying down concrete blocks to build a home,” Fullo further elaborated by saying, “Classes with Guam Trades Academy gives them the full circle of construction and helps not only young men, but the young women to see all other job opportunities in the field of construction.” And students are actually interested in finding jobs in these fields. The WaPo article written by Michele Lerner also briefly emphasizes how students were required to learn safety techniques to prepare “for safety certifications, requirements on job sites.” JPTSA Principal Fullo stated, “The program also certifies them on a national level so they see the value in the work and opens many opportunities for them.” He continued by emphasizing, “Because there is a direct need in the construction industry they have a greater opportunity in finding work after completion of courses.” He spoke of the importance of the program and its value of motivating and inspiring students to learn. “The level of learning is rather rigorous yet they met the level of expectations Trades Academy set on them,” he praised. “I believe it should be expanded to all schools as this will help prepare students for the real world.” As we look toward the future of education and job markets, the same things come to mind: preparing Like Us On Facebook

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students for success and life. Maybe it’s the evolution of the classroom and the mindsets of our educators and administrators, which can help us realize that education itself is not simply stuck in the books, but in the hands of those learning. “There are students who may have difficulty succeeding in our traditional school settings, and these students, the more they experience failure or the more they fall behind, become increasingly at risk of dropping out,” said Jon Fernandez. He added that is the thing the department is trying to avoid. “We want our students to develop and pursue plans beyond high school so they can transition into becoming successful in whatever they choose to do.” More specifically, the superintendent points to the partnership with the GCA Trades Academy as an excellent example “…of how we provide students an opportunity to engage in a trade, learn skills, and become certified to go into a career or to move on to further training. We have seen the level of interest and engagement by these students, and we certainly hope we can build on the success we have been able to demonstrate this year…Our message to them is that we are not going to give up on them.” Fernandez went on to discuss how the success at JPTSA has effects for the entire school system with regard to varying ways for teachers to teach and students to learn, as well as creating partnerships throughout industries and accessing them in the classroom. No longer seen as a ‘waystation’ for students to get those last credits before graduation. It is becoming an ‘innovative and relentless’ magnet for creativity and sharing. Heck, that should be any educational institution, right? More so, the J.P. Torres Success Academy Construction Craft Laborer program and its partners are helping students realize their potential and spark interests. They are motivating students to try new things, especially as they make their way out of the classroom and into the real world. Sometimes we see balloons, cards, or poster boards with phrases like, “Aim high!” “Reach for the stars!” Sure. But, how about... “Build your destiny.” That’s what graduations are all about, aren’t they?

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JUNE2017 | 19

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F A S A G N I T A V C U LT I

E R U T L ET Y C U n

n Aguo

By: Joh

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Guam Contractors Association (GCA) hosted the 2017 Safety Conference, a two-day event, May 24 through May 25, held at the Holiday Inn Resort in Tumon; featuring a variety of Safety experts from both the public and private sector, presenting and discussing a wide range of Safety topics and regulations to assist contractors and workers in their collective goal of creating, maintaining, and operating a safety-conscious working environment. With over 30 years experience in Safety, a certified safety professional, Barbara Goto, Regional Administrator for OSHA, presented her keynote remarks and opened the 2017 Safety Conference. In it she erxpounded on OHSA's mission, illustrated its impact, and highlighted some of the agency's numerous operating programs utilized to guide employers, safety professionals, and employees to outcomes of zero tolerance for safety violations--to manifest the reality of workers returning home safely each day to their families. Prior to 1970, there were 38 fatalities a day. Today, that figure is down to 12 fatalities a day. While that statistic is an improvement over the pre-1970 metric, Goto emphatically states, "That is still not acceptable." Noting clearly, Goto presents OSHA's mission. She said, "It is to remove workers from hazards, and to insure safe and healthy work places." Driving the point, she continues, "There is no doubt that OHSA has helped to save thousands of lives, but there is still much to do to alleviate preventable accidents, serious injury, and death. Workers' families should never have to consider the risk of death as a condition of the workplace."

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to economic terms, Goto reveals that OHSA calculates that figure to be $198.20 billion annually. Surely, the true impact is the actual physical injury or death, of a worker for their family and friends; there is a quantifiable and measured negative financial impact as well. Mentioning OHSA's and employers' role in achieving the Safety Mission, she cites emphatically, "Safety Officers save lives. You save lives." And, asks the question directly, to all conference attendees, "Do you have a zero tolerance goal for accidents?" It seemed an introspective attempt to reset a Safety community's conscience to achieve the ideal. She noted the agency's operational efforts at enforcement through a list of OSHA Enforcement Initiatives (which can be found on their website. ...Severe Violator Enforcement Program ...National Emphasis Program ...Local Emphasis Program ...Corporate Wide Settlement Agreements ...Enforcement Directives She urged attendees to "Extend Safety to the home, so you will change the culture for safety at the workplace." Generally, the thinking here was for attendees to consider that usually, how one operates at home is what they bring to the job site. So, if you operate safely at home, you will bring that ethic to the workplace. She reminded conference attendees of Safe and Sound Week, June 12-18, 2017, this year, and closed with..."Everyone that goes to work, should be able to return safely home...at the end of the workday."

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FEATURE STORY

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Other Presenter Notes and Comments... Anthony Anderson, GovGuam Department of Labor OHSA Administrator asked the question as an encouragement to conference attendees to stay fundamentally aware always, "What is a hazard and how can we prevent it." It was an appeal to stay vigilant in recognizing what a hazard is, and then, diligent in mitigating or reporting it. Anderson further exhorts employers, "If an employer recognizes a safety hazard, they must do something to prevent it." Again, as noted by other Safety presenters, there is implied responsibility for all to cultivate safe and healthy workplaces. He summarizes, "Not only do you provide safety, but it's just the right thing to do." He shares, "OSHA's purpose is to assist." He was speaking here about the free consultation services offered to employers satisfying certain requisites, of which can be found at the GovGuam Department of Labor website regarding OHSA. Joseph Leasiolagi-Black Construction Safety Officer, a long-time Safety professional, also known as "Samoan Joe", presented and spoke of the reality of safety or the lack thereof in workplace.

last breath of that person. Joe tried, in vain, to lend aid. The room was quiet. "There too many available options to prevent falls," he spouts matter-of-factly. His meaning was clear. There is no reason to get injured by a fall, because there are so many proven ways and apparatus to prevent such from ever happening. "Go above the minimum standard. If management is not committed to the safety program, you don't have a safety program." It sounded as blunt as a thud. Obviously, the message being, true Safety Programs are founded and enforced by the leadership, big or small, of companies. Of course, he noted that the worker needs to know that they shouldn't operate in an unsafe manner too. And, as a pathway to that knowledge, Joe emphasizes training. "You have to train employees. All are responsible." And, as a final punctuation to his commentary, "I care about production. If you're safe, you're very productive. There's a way to make money...safely." I heard a cymbal clash. Didn't you?

He headlines, "Most fatalities occur from falling." He tells the story of a workmate falling 8 floors at the PIC tower project. At that time he was working as a pump operator, and he witnessed the actual fall, and the death of the worker. He conveyed what it was like to hear the 22 | JUNE2017

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2017 SA

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JUNE2017 | 23

PHOTO HIGHLIGHTS

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GCA Luncheon May 17, 2017 Westin Resort Guam

Guest Speaker Dr. Herbert "Bert" Johnston

24 | JUNE2017

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PHOTO HIGHLIGHTS

Guam Energy Expo JUNE 10, 2017 Micronesia Mall

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MARCH2017 | 21

CRANE CRITIQUE

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CRANE ACCIDENTS Are your operators doing all they can to prevent one? Editorâ€™s Note: This article originally ran in January 2015

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 A serious crane accident can be catastrophic and unfortunately they do occur periodically. But the majority of accidents are not the front page news items with fatalities we read about now and then. They are minor accidents with no injuries or property damage. But any crane accident has the potential to injure, cause property damage, or worse. I will discuss a few of these minor accidents I have witnessed here on Guam, what caused them, as well as some disturbing deficiencies noted on cranes that could very well have caused an accident. Most of these items could have and should have been noted by the operator during his daily inspection. An operator must be competent to operate a crane and this includes competent enough to adequately inspect a crane and evaluate if any deficiencies found during this inspection could be considered a safety hazard. All operators must have the authority to stop crane operations if he finds what he considers a safety hazard until a qualified person determines otherwise or the hazard is abated. Some of the deficiencies I have noted during an inspection or accidents resulting from crane operations with deficiencies: Some deficiencies do not appear serious at first glance but when it comes to lifting equipment no deficiency should be taken lightly. Consider the instance when a mechanic plugged a pipe tee in an airline but did not have a pipe plug so he used what he had, a grease fitting. The unknowingly operator who greased this line should have known what he was greasing but apparently did not. The airline was on a lattice boom crane with drum air brakes. Once the line was full of grease and filled the quick release for the brake cylinder it blocked the air and the operator lost control of the load.

26 | JUNE2017

Improper termination, use of wire rope clip Next near miss was comical but could have been disastrous. During a heavy lift and 90 degree swing the riggers thought the Kenworth with a winch would be good tagline control. All went well until the load was in place and a rigger was instructed to stop the winch by pushing in the clutch. Unfortunately he was too short to push the clutch to the floor and the winch came close to tipping the already maxed out crane. One of the most preventable deficiency I see often is the improper wire rope termination at the wedge socket. I try my best to educate operators and riggers alike of the importance to keep wire rope clips off the live end and also to re-socket the wire periodically. An example of the importance of this was a dropped load from a crimped line that happen to result in a fatality. The sad part of this is that the wire rope clip that supposedly secures the line is what caused the rope to break. When in reality www.guamcontractors.org

the clip holds nothing, the wedge is what takes all the weight. Another deficiency noted more than a few times during one of my annual inspections is improper reeving. Namely the hoist wire over top of the sheave keeper pin. This happens now and then to the operator not paying attention when he is installing or re-reeving a wire. When the boom is down, or at zero degrees, often the lower keeper is not removed and the wire is easily reeved over top the keeper instead of under. What can very well happen is the wire saws through the keeper pin and destroys the wire during a heavy lift. A power line accident occurred locally a few years back because of a cell phone call. While directing a crane travelling in reverse, the signal person answered his cell phone and turned his back to the crane. The driver proceeded until the boom contacted the overhead power lines at which time there was Like Us On Facebook

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a fireworks show and he immediately pulled forward away from the lines. Cell phones should not be a distraction during crane operations and any work near power lines are considered critical and require a lift plan to address this type of issue. Luckily no one was injured but there are many in this business not so lucky when it comes to power lines. Crane operations also include mobilization, driving down the road or loading onto a lowboy. Recently an operator slipped off a lowboy and the crane rolled over onto its side. He was not hurt but the crane was not so lucky. This accident could have been prevented simply by having a signal person on both sides of the lowboy. Service persons injured on cranes also are considered crane accidents, including the mechanic who hammered on a dragline bucket tooth edge. He lost an eye when a small sliver of steel pierced it. Qualified persons must perform maintenance or repairs and a qualified person should realize bucket teeth are hard tensile steel, not to be hammered on. Recently a crawler carbody crack near the track extension beam was welded by a certified welder without a proper procedure. Again, this work must not be performed by unqualified persons. Qualified means knowing a procedure for this specific repair is needed. This weld was a groove weld on two inch thick steel. After load testing the crane the crack was back and bigger than ever. For readers unfamiliar with welding heavy steel and the purpose of a procedure, what happens is during the welding of the root pass the base metal is so thick it acts as a heat sink and pulls the heat from the weld too fast, sometimes causing a root crack. The procedure for welding thick steel will usually require pre-heating the base metal and possibly post-heating as well. Another near miss resulting from over-sight or just plain laziness was the loss of the front counter weight on a truck crane during a lift over the front. The crane had no over the front capacity so this lift should not have been taking place. The counter weight had top hook pins that was holding the entire weight. The lower pins were not in place, the crane teetered on the front outriggers, the counter weight hit the ground and became unhooked from the top pins, fell to the ground, and the crane fell hard backwards on the rear outriggers. A rigging accident occurred after a very corroded set of 4-leg slings were wire brushed and painted with diesel fuel. What resulted was a set of slings that looked almost new but was corroded to the core. The fortunate thing Like Us On Facebook

Evidence of Improper reeving wire rope over keeper pin was the slings broke before the load was off the ground. A 140 ton truck crane suffered a backwards tip after swinging over the side with all counter weights installed and outriggers retracted. Operators must know the limitations of the particular crane they are operating. Another accident occurred here on Guam a few years ago because of improper crane set-up and improper rigging. This involved lifting a forty foot container. The crane had a relatively short boom resulting in using short slings because of lack of head room. The container was loaded heavily in the middle and when lifted, folded like a lawn chair. Again, a qualified person should know containers require near vertical rigging, use a spreader if necessary. The luckiest operator involved in an accident Iâ€™ve seen was a rough terrain roll over while carrying a load. This operator had every opportunity to stop operations before the lift but chose to continue despite the known safety hazards on the crane. The crane had no emergency or parking brake, all the brake chambers leaked so the service brakes only lasted about ten seconds, the engine needed a fuel filter change so it would quit periodically The crane was carrying a load up a hill, engine quit, operator applied brakes, lost air and coasted back, over edge of road a rolled over. The trees actually probably saved him as they acted as a cushion when the crane went over. The wrong load chart use has been noted to be a problem ever since there has been multiple load charts. Even though new cranes have very accurate load, radius, boom angle etc. indicators, the operator still needs to be careful how he programs the computer to assure he is programming all parameters correctly as the crane is configured. Older cranes may have www.guamcontractors.org

only two or three charts: over the end, side, or 360Â°. Using the wrong chart may very well lead to an over loaded crane. All of the above accidents or near misses were preventable, and they most definitely should not happen again. Every near miss should be scrutinized to find out what happen, how it happen, and what measures we need to take to prevent it from ever happening again. Operators should check entire crane, mechanical, hydraulics, functional, etc. and note any and all deficiency no matter how unimportant it may seem. I encourage classroom participants to share any near misses or accidents with the other operators so that we can all learn from a mishap or near miss. Though accidents are unfortunate, they are still a very effective learning tool.

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. 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, NCCCO 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.

JUNE2017 | 27

SMALL BUSINESS NOTES

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Give your business the edge by attending the GCA Small Business Committee meeting. Be your company’s voice and let us know the challenges you face. We are here to help you and your business grow. We have experts in business at our meetings: Gerardine Mendiola Procurement Technical Assistance Center(PTAC) Ken Lujan Small Business Administration (SBA) Casey Jeszenka Small Business Development Center (SBDC) Al Sampson NavFac Marianas Small Business Advisors Our next meeting is on Wednesday, June 28th , 11:30 AM at the GCA Conference. Email: Irene Hicks - irene@abemart.com or Elaine Gogue - elaine.gogue@guamcontractors.org to rsvp or if you have questions.

GUAM PTAC

FREE

PUBLIC

WORKSHOPS The Guam Procurement Technical Assistance Center (PTAC) is offering a FREE workshop to the public on Tuesday, June 27th. Workshops run from 8:30am—11:30am in the Jesus and Eugenia Leon Guerrero Business and Public Administration Building, Margarita Duenas Perez & Jaime Felipe Tuquero IT&E Lecture Hall, 131

June 2017 DoD Procurement Opportunities for the 4th Quarter FY17 Join us at this workshop as contracting representatives from NAVFAC Marianas, 36th Contracting Squadron, and the Military Sealift Command provide an overview of procurement opportunities and what to expect as the Federal Government winds down Fiscal Year 2017. Representatives from prime contractors such as DZSP21, Contrack-Watts, Black Construction Corporation, and Granite Construction Company Guam will also be on hand to discuss potential subcontracting opportunities with their ﬁrms. This is a great time to meet contracting and small business representatives from the Air Force, Navy, and Prime Contractors so bring your capabilities statement and business cards.

Speakers from:

Source: Federal Business Opportunities (FBO) and Federal Procurement Data System (FPDS). Register at: pisbdcn.ecenterdirect.com For more information, contact the Guam SBDC at 671-735-2590 or visit www.paciﬁcsbdc.com

28 | JUNE2017

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If your company has not yet established itself for a surety bonding, stop here and read this article

This work. can be This a project can be owner, a project owner, Each is briefly Each described is briefly described below: below: The first step The in first qualifying step in qualifying for a bondfor a bondthe work.the principal if the principal is a first tier is a first tier Bid Bonds: BidBid Bonds: bondsBid arebonds most frequently are most frequently program is program understanding is understanding the basicsthe of basics OR, of if theOR, subcontractor, the Obligee thewould Obligee be would bemandatedmandated on public/gov’t on public/gov’t projects. projects. a surety relationship. a surety relationship. Therefore,Therefore, this thissubcontractor, their Contractor Prime Contractor that the sub thatisthe sub When is required, When required, the bid bond the bid willbond be will be article will article not go will into notvast go details into vast of details oftheir Prime workingunder. directly Forunder. the purpose For the purpose provided to provided the owner to the (government) owner (government) by by the suretythe relationship surety relationship – that is best – that is best working directly of thiswe’ll article, presume we’ll the presume Obligee the Obligee the contractor the contractor as part of as thepart contractor’s of the contractor’s suited forsuited a face for to face a face meeting to facewith meeting a withofa this article, is a project is owner a project and owner not aand Prime not a Prime bid submission. bid submission. The bid bond The bid guarantees bond guarantees surety professional. surety professional. Rather, this Rather, article this article Contractor. Contractor. The Obligee The(as Obligee owner)(as owner) that the bid thatwas theplaced bid was in placed good faith in good faith covers thecovers fundamental the fundamental definitions definitions and and has a few has critical a fewresponsibilities critical responsibilities and andand that the andcontractor, that the contractor, if awardedif the awarded the mechanisms mechanisms of surety in of order suretytoinhelp order you to help you must adhere must toadhere the contracts to the contracts terms, butterms, contract, but will contract, enterwill in toenter the contract in to the contract understand understand the naturethe of nature the suretyship of the suretyship perhaps most perhaps importantly most importantly they mustthey pay mustand payprovide andthe provide required the Performance required Performance and hopefully and hopefully make a meeting make awith meeting yourwith your the the Contractor as agreed.as agreed. and/or Payment and/or bonds. Payment The bonds. bid bond The bid is bond is surety professional surety professional more meaningful more meaningful and andContractor usually a set usually percentage a set percentage of the total of bid the total bid productive. productive. The Surety: TheThe Surety: suretyThe is the surety is the amount (usually amount10% (usually to 20% 10%oftothe 20% bid). of the bid). guarantorguarantor behind the behind contractor. the contractor. In the event In the thatevent the contractor that the contractor fails to fails to So let’s begin So let’s with begin describing with describing the basic the basic will surety vigorously will vigorously prequalifyprequalifyenter in toenter the contract in to theor contract fails toor provide fails to provide bond arrangement bond arrangement and the parties and the parties The suretyThe the contractor/principal the contractor/principal in terms of in terms of the requirement the requirement Performance/Payment Performance/Payment involved… involved… character,character, experience, experience, past performance, past performance, bonds, thebonds, ownerthe hasowner the right has to theclaim right to claim and financial and financial capacity. capacity. If If to the surety to the forsurety an amount for anup amount to the up to the Generally,Generally, surety is asurety three isparty a three party capabilitycapability deemed sufficient, deemed sufficient, the suretythe will surety agreewill agree full penalty fullofpenalty the bidofbond. the bid Thebond. amount The amount arrangement arrangement where onewhere partyone (contractor, party (contractor, bond issue fora abond specific for acontract. specific contract. of the claim of the depends claimon depends how much on how much referred toreferred as the Principal) to as the Principal) has a has a to issue a to The bondThe issued bond guarantees issued guarantees certain certain additionaladditional costs the owner costs the incurs owner if the incurs if the contractual contractual obligationobligation to secondto party second party obligations are met byare the met contractor. by the contractor. If If second-low second-low contractorcontractor is to be selected is to beinselected in (usually the (usually owner, the referred owner,toreferred as the to as theobligations all goes well, all goes the well, suretythe will surety have will littlehave little lieu of thelieu lowofbidder. the low bidder. Obligee); Obligee); with a third with party a third (theparty Surety) (the Surety) do (and communication little communication with with being a guarantor being a guarantor ‘backing’ ‘backing’ the first the first to do (andtolittle the owner/obligee). In due course In due they course they Performance Performance bonds: The bonds: performance The performance party (Principal party (Principal / contractor) / contractor) to the to the the owner/obligee). will be able willtobe close abletheir to close bond their file bond (whenfile (when bond protects bondthe protects ownerthe (Obligee) owner (Obligee) from from owner/obligee. owner/obligee. appropriate) appropriate) without much without involvement. much involvement. financial financial loss due to loss thedue contractor’s to the contractor’s However,However, if the contractor/principal if the contractor/principalfailure to failure perform to in perform accordance in accordance with with Defining Defining the three the parties three a bit parties further: a bit further: should fail should to perform fail to on perform the job, onorthe failjob, orthe failcontract, the contract, plans andplans specifications. and specifications. The Principal The Principal (also referred (alsotoreferred as the to as theto pay certain to payvendors, certain then vendors, the surety then the surety If, on a bonded If, on aproject, bondedaproject, contractor a contractor Contractor): Contractor): The Principal The Principal is to perform is to perform would become wouldmuch become more much involved more with involved fails with to perform fails to accordingly, perform accordingly, the ownerthe owner the work the as contractually work as contractually obligatedobligated in the in thethe Obligee the(and Obligee Contractor/Principal) (and Contractor/Principal) has recourse has to recourse file a claim to filewith a claim the with the underlying underlying contract, contract, plans, specifications plans, specifications in findinginand finding funding andafunding remedy atoremedy the to the surety. The surety. suretyThe must surety thenmust investigate then investigate and general andconditions, general conditions, all of which all of which situation.situation. and, if appropriate, and, if appropriate, step in and step remedy in and remedy detail what detail the what Principal the Principal is expected is expected to to the situation. the situation. They can They do socan by: do 1) so by: 1) accomplish accomplish and within and what within timewhat frame. time frame. There are There basically are three basically primary threetypes primary of types of facilitating facilitating a bailout aplan bailout withplan the with the bonds pertaining bonds pertaining to contract tosurety. contract These surety. These original contractor original contractor (if agreeable (if agreeable to to The Obligee: The Obligee: The Obligee TheisObligee the party is the party are: Bid bonds, are: Bid Performance bonds, Performance Bonds andBonds and the owner); the2)owner); the surety 2) the cansurety find an can find an for whomfor thewhom contractor the contractor is performing is performing Payment Bonds. Payment Bonds. acceptableacceptable replacement replacement contractorcontractor at the at the 30 | JUNE2017

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suretyâ€™s expense; suretyâ€™s or expense; 3) the surety or 3) the cansurety canOne finalOne itemfinal worth item explaining worth explaining is the is the to each job tobefore each job signing beforea signing contractaand contract and negotiatenegotiate a financiala financial settlement settlement with the withIndemnity the Indemnity Agreement. Agreement. The concept Theofconcept of providingproviding bonds. The bonds. up-side Theofup-side being able of being able owner. owner. the indemnity the indemnity agreement agreement is one of the is one of the to providetobonds provide is that bonds it may is that open it may doors open doors defining distinctions defining distinctions between surety between andsuretytoand opportunities to opportunities that otherwise that otherwise might notmight not beisobtainable be obtainable for a company. for a company. Payment Payment bonds: The bonds: payment The bond payment bond insurance.insurance. The indemnity The indemnity agreement agreement is protects the protects ownerthe from owner certain fromunpaid certain unpaid a critical element a criticalof element a suretyofrelationship a surety relationship suppliers,suppliers, subcontractors subcontractors or labors (and or labors (and and is oneand of the is one main of the aspects mainofaspects of I hope you I hope have found you have thisfound information this information other possible otherclaimants) possible claimants) having a direct having a direct surety that surety lend that it to lend appear it to more appear likemore like useful - and useful if you - and actually if youmade actually it made it working relationship working relationship with the contractor with the contractor bank credit bank than credit an insurance than an insurance policy. policy.through this through entirethis article entire without articlefalling without falling (or, in some (or,cases, in some under cases, theunder primethe prime Resembling Resembling a bankâ€™s loan a bankâ€™s agreement, loan agreement, asleep, congratulations! asleep, congratulations! Youâ€™re now Youâ€™re readynow ready contractorâ€™s contractorâ€™s subs (ie. sub-subs)). subs (ie. sub-subs)). These areThese theare primary thefunction primary of function the indemnity of the indemnity to exploretobonding explore further bondingbyfurther visitingby visiting typically entities typicallywhich entities have which mechanicâ€™s have mechanicâ€™s agreement agreement is to serveisastothe serve contractorâ€™s as the contractorâ€™s the Suretythe Information Surety Information Office website Officeatwebsite at lien rights. lien Inrights. the event In the thatevent the bonded that the bonded agreement agreement to reimburse to reimburse the suretythe forsurety for www.sio.org, www.sio.org, or by calling or by our calling office.our office. contractorcontractor (or his subcontractor) (or his subcontractor) is unable is unable all costs incurred all costs by incurred the surety by the in surety the in the to pay uncontested to pay uncontested amounts payable amounts payableevent thatevent the surety that the hadsurety to step had into step in Adam Baron to certaintosubcontractors, certain subcontractors, suppliers suppliers or or and complete and complete the bonded thecontractorsâ€™ bonded contractorsâ€™ Bond Manager obligations. obligations. laborers or laborers other entitled or otherclaimants, entitled claimants, the the Cassidyâ€™s Associated Insurers, Inc. surety would surety then would step then in and step satisfy in and thesatisfy the Adamb@cassidysguam.com uncontested uncontested job-specific job-specific payables of payables the of The the bottom Theline: bottom As aline: formAs of acredit, form of if credit,www.cassidysguam.com if contractor. contractor. It is interesting It is interesting to note that to note that the suretythe hassurety to payhas outtotopay honor out any to honor of any of Payment Payment bond claims bond can claims occurcan even occur if eventhe if contractorâ€™s the contractorâ€™s obligations, obligations, the contractor the contractor the job site theperformance job site performance is proceeding is proceeding must reimburse must reimburse the suretythe pursuant surety to pursuant to satisfactorily. satisfactorily. the indemnity the indemnity agreement. agreement. Bearing this Bearing this in mind, one in mind, must one put careful must put thought carefulinthought in

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19 1

Specialty Cook Supervisor

Ultrasound Tech

Wedding Service Attendant

TOTAL Construction H-2B Workers

102

Pipefitter

Camp Cook

Mechanic

Total Non-Construction H2-B Workers

Electrician

Market Research Analyst

Heavy Equip. Operator

Machinist

Total OTHER Construction

9 0

Sheetmetal Worker

1 3

Landscape Gardener

Heavy Equipment Mechanic

100

134 0 2 2 0 0 0 0 0 0 138

138 Grand Total H-2B Workers

100

200

300

400

500

600

700

800

900

Total U.S. Workers

Grand Total H2B Workers

US Workers vs. H-2B

924

Total U.S. Workers

1000

12 21

Total H-2B Employers

Non-Construction

Construction

Employers By Industry

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

Workers by Nationality

Total Common Const.

Structural Steelworker Plumber

Reinforcing Metalworker

HVAC Technician

Carpenter

Common Construction Occupations Cement Mason

Bakery Mechanic

Construction Equipment Mechanic

MONTH ENDING: May2017

Other Construction Occupations

Employers Workplace Monthly Report Statistics

Baker

Other Non-Construction Occupations

GUAM DEPARTMENT OF LABOR Alien Labor Processing Certification Division

Korea Thailand 0.00% 0.00%

5.00%

0.00%

50.00%

2.00%

9.00% 0.00%

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 0.00%

Kiribati 1.45%

34.00%

Common Construction Occupations

Philippines 97.10%

Japan 1.45%

Australia 0.00%

Italy 0.00%

H-2B Population by Nationality

REPORTS/ INFORMATION CONSTRUCTION NEWS BULLETIN

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GCA Construction News Bulletin June 2017

Published on Jun 21, 2017

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

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