THE LINK BETWEEN
APPRENTICESHIPS AND HIGHER EARNING POTENTIAL
Apprenticeship programs, a time-honored approach to a company’s workforce skills development, are gaining renewed interest across the construction industry.
An apprenticeship is a structured program combining on-the-job training with classroom instruction. Apprentices work alongside experienced professionals to gain hands-on skills while also attending educational classes (at the GCA Trades Academy) to solidify their understanding of their chosen trade.
Apprentices who successfully finish their training and achieve Journeyman status typically have a considerable advantage in terms of earning potential compared to new college graduates. Generally, apprentices tend to earn a higher starting salary immediately after completing their apprenticeship than college graduates do upon finishing their degree.
Apprenticeships are a strategic investment for employers, offering a multifaceted return on investment. They cultivate a highly-skilled workforce tailored to the company's specific needs, leading to improved productivity and innovation. By nurturing talent in-house, employers can reduce recruitment costs and enhance employee retention, ensuring a consistent quality of workmanship and a deep understanding of company culture.
Employees reap the benefits of the 'earn while you learn' model, which allows them to acquire marketable skills and relevant qualifications without the burden of student debt. This hands-on learning approach leads to higher job satisfaction and loyalty. Furthermore, apprenticeships open doors to upward mobility within the industry. Many
apprentices on Guam significantly advanced in their careers, achieving leadership roles and increased earnings through the skills and experience gained.
Apprenticeships serve as a robust bridge to higher earning potential and career advancement for employees, while also acting as a strategic asset for employers. These programs are a forward-thinking investment, aligning perfectly with the dynamic and ever-evolving nature of the workforce. They offer a practical route for employees to elevate their skill set and secure financial growth.
For employers, apprenticeships are a means to shape a workforce that is not only skilled but also deeply aligned with the company's mission and values. This symbiotic relationship fosters a culture of continuous learning and improvement, essential for thriving in today's competitive business landscape. Apprenticeships are not just about the present; they are a commitment to the future prosperity of both individuals and organizations.
The Guam Contractors Association keeps track of hours worked and the education progress of the apprentices in your program. We can guide your company through the whole process. What have you got to lose?
Join the list of companies that have, or are in the process of, creating an apprenticeship program to enhance the skills of its workforce.
www.guamcontractors.org 8 MAY 2024
Interested in learning more? I can help you! Please contact me at (671) 647-4841 or francine.taitague@guamcontractors.org.
APPRENTICESHIP CORNER
BUSINESS HOURS: MONDAY-FRIDAY | 8AM-5PM OFFICE: (671) 646-7662 | FAX: (671) 649-0053 WEBSITE: WWW JWSGUAM COM 290 TUN JOSE SALAS ST, SUITE A TAMUNING, GU 96913 P E R F O R M A N C E W I T H C A R E
Accessing Care… Off-island Care Services
By Rodney “RJ” Ricarte
Your TakeCare GCA Health Insurance Employee Benefit includes many ways to live a Balanced Lifestyle of being active, eating right, relaxing and unwinding , and staying socially connected.
A good way to understanding your health benefit is to familiarize yourself with the TakeCare Member Handbook. This handbook outlines benefit coverage, copayments, co-insurance, deductible, exclusions and limitations specific to your health plan. We hope the Member Handbook is resource for you.
The Off-island Care Services section, starting on page 10, helps you understand how your coverage works.
Here are a few highlights from the Off-island Care Services section.
Travel Benefit to the Philippines. This benefit applies to members with prior-approved referral for off-island specialty care and hospitalization/ in-patient services that meet the medical necessity criteria as outlined by TakeCare’s Medical Management Department. To avail of this benefit, a notice of benefit eligibility must be properly completed and signed prior to the member's departure from Guam.
Services covered by the travel benefit is limited to approved specialty care visits and consultations, diagnostic testing and imaging, outpatient surgery, rehabilitation therapy, outpatient chemotherapy and radiotherapy under participating Philippine providers. This travel benefit is limited up to $500 and may be applied towards the purchase of nonrefundable economy/-coach airline ticket and/or payment for lodging. It will be paid on a reimbursement basis with the following documentation: copy of approved referral, original and valid receipt(s) or copy of airline ticket or lodging statements and proof of payment
Approved companion of the minor child is limited to the minor’s parent or legal guardian. This benefit is not applicable for members with TakeCare as their secondary insurance.
Services in the Philippines. TakeCare offers an expanded network of providers in the Philippines for in-patient services, selected out-patient services, dental services, and pharmacy benefits. Service(s) must be coordinated and approved by TakeCare prior to member’s departure from the service area. Services not prior coordinated and approved by TakeCare will be subject to reimbursement and may be covered under the member’s non-participating benefit.
Services in Hawaii and the Mainland U.S. Eligible off-island members will need to identify their primary care provider within thirty (30) days from open enrollment period or any qualifying event. Basic primary and preventive services must be prior coordinated and approved.
Out of service area and off-island services. All out of service area services including but not limited to specialty care and elective hospitalization services are subject to prior authorization and approval from TakeCare otherwise these services will not be covered under the member’s plan even if provided by directly contracted providers or providers under TakeCare’s rented network. Prior approved services done through a directly contracted provider will be covered based on the member’s non-participating provider benefit.
Of course, this is not a complete listing, just a sample. Please review the Member Handbook at your earliest convenience. It is wealth of information to assist you and your family in better understanding your health insurance coverage. If you need more information, please contact me.
Rodney “RJ” Ricarte is the TakeCare account executive for GCA. He can be contacted at (671) 487-7121 or rodney.ricarte@takecareasia.com.
www.guamcontractors.org 10 MAY 2024
MEMBER BENEFITS
First CHamoru Woman CSP
BY: MYRACLE S. MUGOL
In the realm of safety and occupational health, milestones are not just accomplishments; they're significant markers of progress and representation.
Janelle Ashley Chargualaf, a Safety and Occupational Health Specialist at OICC Marine Corps Marianas, has achieved a groundbreaking feat as the first CHamoru woman to become a Board-Certified Safety Professional (CSP). Her journey is not just a personal triumph but a testament to the power of perseverance, dedication, and breaking barriers in traditionally male-dominated fields.
"The CSP certification is the highest achievement a safety practitioner can attain," stated Johnny Cruz, the Occupational, Safety, & Health Manager with OICC Marine Corps Marianas. He elaborates by saying, “the CSP designation demonstrates the professionalism and educational knowledge in the field of safety." He further elaborated on the benefits of having a CSP on the team, highlighting how it brings immense value to the organization's commitment to the highest level of safety.
OICC Marine Corps Marianas plays a crucial role in the United States military infrastructure, particularly in the Pacific region. The organization is responsible for managing, planning, and executing construction projects to support the operations and readiness of the U.S. Marine Corps in the Marianas area. From infrastructure development to facility maintenance, that the Marine Corps has the necessary infrastructure and logistical support to fulfill its mission effectively. The presence of women like Chargualaf within traditionally male-dominated fields brings diversity of thought, perspective, and approach. However, Janelle acknowledges the challenges she faced as a minority woman in the safety field. She says, "As a woman, I would already be a minority in the safety field and that I would have to work harder to prove myself." However, she saw obtaining the CSP certification as a strategic move to overcome these challenges. Seven years later, her foresight has paid off, solidifying her position as a respected leader and team player in safety and occupational health.
Janelle's career trajectory is a demonstration to her strategic approach and commitment to excellence. Starting with her undergraduate degree at the University of Guam, she meticulously planned her educational and professional journey. Pursuing a master's degree in environmental, health, and safety from the University of Denver, she ensured her qualifications were not just nationally recognized but also positioned her for career growth and financial stability.
Her experience spans diverse industries, from research laboratories to general industry and construction
safety. Each role has contributed to her expertise and molded her into the seasoned professional she is today. She reflects, "Prior to OICC, I was a SSHO [or Site Safety and Health Officer] for a well-established local construction contractor...learning a lot of what to do and what not to do as well."
At OICC Marine Corps Marianas, she plays a pivotal role in shaping the future of construction safety, advocating for proactive measures and systemic changes that prioritize worker well-being. Janelle emphasizes, "This offers our team a comprehensive perspective of where the construction safety field is headed and allows us to be a part of the change... from the old fashioned ‘safety cop’ to the teammate who is crucial to the planning process getting the job done safely and on time."
One of the key responsibilities Janelle manages daily is being a reliable resource for personnel, whether it's ensuring compliance, conducting risk assessments, or actively participating in planning processes. She says, "I think most professionals at my level would agree that, the key responsibilities as a Safety Specialist are to be a reliable resource for personnel whether it be compliance, risk assessment, or as a member of the planning processes."
Over the years, Janelle has witnessed significant evolution in the safety field, particularly in the shift from traditional 'safety cop' approaches to behavior-based safety and genuine executive management buy-in. She highlights, "The safety field has undergone a lot of positive changes from the days of the ‘safety cop’ to now looking at behavior-based safety... Genuine executive management buy-in to safety is proven to save lives, time, and money..."
Maintaining her CSP certification involves meeting specific requirements within a five-year period, including ongoing training and professional engagement. She explains, "In order to maintain the CSP credential, I have to pay an annual fee for my credential and meet specific requirements within a 5-year period." Her commitment to continuous learning ensures she remains at the forefront of her field.
Within OICC Marine Corps Marianas prioritizes the growth and development of its personnel, fostering a culture of mentorship and support for professional advancement. Cruz explains, "OICC Marine Corps Marianas supports the growth and development of personnel to achieve personal and career goals. OICC provides mentoring, training, and other methods to promote career growth and to pursue professional certifications." They provide various avenues for employees like Ashley to pursue their career goals, including mentoring, training, and support for obtaining professional certifications such as the CSP. Johnny Cruz
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encourages employees interested in professional certifications like the CSP to fully embrace higher learning and certification in safety. He emphasizes that obtaining certifications can enhance one's impact on personnel and career trajectory, potentially leading to higher salaries compared to peers without certifications.
In preparing for leadership roles in safety and occupational health, Cruz suggests a proactive approach. He emphasizes, "Employees can prepare themselves for leadership roles by attending leadership training and summits. They should observe other leaders and see the positive and negative traits of each supervisor." This hands-on learning approach allows individuals to collect insights from experienced leaders, identifying effective strategies and areas for improvement. Cruz further advises, "Finally mold yourself to become a great leader that produces positive outcomes, communicates and listens to employees, and surrounds oneself with exceptional talent." This proactive stance towards leadership development ensures that individuals from diverse backgrounds and experiences can advance within the organization, fostering an inclusive environment for professional growth and advancement.
Despite facing challenges and obstacles, Janelle has navigated her career with resilience and determination. Her advice to women and minorities aspiring to advance in safety and occupational health underscores the importance of mentorship and leveraging resources within the industry. Initiatives aimed at promoting diversity and inclusion, such as mentorship programs, leadership development initiatives, and diversity training, are essential in addressing these challenges and creating a more inclusive work environment.
Janelle Ashley Chargualaf's journey to becoming a CSP is a groundbreaking achievement for representation and progress in the safety field. Her dedication, expertise, and advocacy for proactive safety measures inspire existing and new generations of safety professionals to strive for excellence and break barriers in their own careers. As we celebrate her accomplishments, we recognize the transformative impact she continues to make in ensuring safer workplaces and healthier communities.
"I think most professionals at my level would agree that, the key responsibilities as a Safety Specialist are to be a reliable resource for personnel whether it be compliance, risk assessment, or as a member of the planning processes."
- Janelle Ashley Chargualaf
www.guamcontractors.org 14 MAY 2024
FEATURE STORY
I have spent a good part of my career either as a General Contractor (GC) myself or in an executive management position within the GC management team or as a consultant to the GC. While the GC is certainly central to any project, subcontractors are often the ones physically building the project and yet surprisingly take on the most risk, while reaping the least reward. The disproportionate amount of risk undertaken by subcontractors is due entirely to the GC/subcontractor agreement that is typically written, in its entirety, by the GC with iron clad protections to the GC. Typical subcontract agreements include the following clauses that are designed to eliminate risk to the GC and transfer that risk to the subcontractor. Dut to the risk imbalance, subcontractors often push back on the contract language, making mutually acceptable agreements difficult to find. Some of the most ominous clauses are:
1. Paid when paid. This clause forces the subcontractor to wait until the GC is paid before the GC is required to pay the subcontractor. While this may seem fair, it does place significant risk onto subcontractors as they do not have the same ability to defer payment for labor and materials until after payment is received. Subcontractors must pay as the work progresses and, at least from a subcontractor perspective, fairness dictates that they should be paid accordingly. Another unfair reality when this clause is used is that delayed payments to the GC by the Owner may have nothing to do with the subcontractor’s work, but rather may involve an unrelated GC/Owner dispute, poor or late performance by others, slow processing of payments by the Owner or even slow or late submission of invoices to the Owner by the GC. If the GC was required to pay the subcontractor as the work progressed and regardless if he has been paid by the Owner, you can bet that the GC would be aggressively pursuing payment from the Owner, which is as it should be. When the GC does not feel the pain of non-payment or delayed payment from the owner, they are less likely to be a strong advocate for subcontractor payment.
2. Paid if paid. This clause is similar to the clause above but is associated with change order work rather than work within the original contract scope. This is a particularly harsh contract clause as the GC will generally have the option of moving forward with the change order in advance of a pre-priced formal agreement as long as he proceeds “at his own risk”. GCs often choose to proceed, particularly when the change only involves subcontracted work and, when this occurs, proceeding is at the subcontractor’s risk despite the fact that the subcontractor may not have been provided with a proceed at risk option. Ultimately, if the Owner fails to issue a formal change, the GC never gets paid and under the paid if paid clause, has no obligation to pay the subcontractor. Subcontractors rightly feel that if a GC decides to proceed with change order work in advance of a formal agreement with the Owner, the risk of non-payment, late payment or underpayment for that work should be borne by the GC, as the decision to
proceed at risk was his and his alone.
3. No damage for delay. This clause basically provides for a no cost time extension as the only remedy available to the subcontractor for delay to the subcontractor’s work, regardless of who is responsible for the delay, even if the delay is the GC’s fault. This again is a very harsh clause for subcontractors and certainly unnecessary for government contracts which generally allow for delay damages that occur as a result of government-caused delay.
4. Specified overhead and profit rate. There is really nothing wrong with a specified rate as long as it is acceptable to both parties and as long as overhead is defined. However, there is a major distinction between home office overhead (HOOH), sometimes called General and Administrative (G&A) costs and Field Office Overhead (FOOH), sometimes referred to general conditions. HOOH is the cost of operating a business with these costs distributed across all projects, whereas FOOH refers to certain direct costs associated with a particular job within a particular project. Many of the FOOH costs are time related, such as trailer rental, utilities and supervision whereas some of these costs are not, such as mobilization and permitting. Typically, overhead, as used within the fixed rate clause, refers to HOOH; however, this is not a universal interpretation. Often Owners or GCs are much more liberal in their application of this clause and include many more costs under the overhead umbrella which stresses the importance to define overhead when this clause is used.
5. Unconditional waiver and release for payment. This clause requires the subcontractor to provide an unconditional release of all claims for the work performed as a condition precedent to payment (i.e. no release, no payment). This is particularly harsh when the subcontractor has a legitimate dispute with the GC that has not been resolved. Use of this clause forces the subcontractor to give up his rights to a claim or forgo payment.
6. Complete agreement. Virtually all contracts include a clause similar to: This Subcontract and the Subcontract General Conditions attached constitute the whole agreement between Contractor and Subcontractor, superseding all prior negotiations, representations, proposals, stipulations, or agreements, either written or oral. This clause effectively negates a subcontractor’s proposal which typically contains a significant number of exclusions, limitations, reservations and clarifications of work scope that were designed to protect the subcontractor. Unless the contractor’s proposal is specifically referenced and incorporated into the subcontract agreement, this clause negates any of the language in the subcontractor’s proposal.
7. Exculpatory language. While not a clause per se, many subcontract agreements contain exculpatory language that attempts to cover any contingency and place the burden on the subcontractor. Examples of exculpatory terms used in many subcontract agreements include:
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• Subcontractor is responsible for all work necessary to satisfy the Owner’s intent regardless if the work is specifically identified on the drawings or specifications or not.
• Quality of the work will be of the quality to meet the Owner’s satisfaction.
• Conflicts, discrepancies and/or errors in the drawings or specifications will be clarified at the sole discretion of the Owner.
• The “Subcontract Amount” includes, without limitation, all labor, supervision, fringe benefit costs, material, equipment, transportation, storage, taxes, insurance premiums, permits, licensing fees, royalties and all things necessary to complete Subcontractor’s work.
• The Subcontractor agrees that it will not make any claim or demand upon the Contractor upon or arising out of any misunderstanding or misconception on its part of the provisions and requirements of the prime contract or this subcontract.
• The Subcontractor, therefore, agrees to perform the work called for in such a manner that it will not injure, damage or delay any other work performed by the Contractor or any other subcontractor, or any separate contractor of the Owner, and further agrees to be responsible for any damage or delay that may be caused to such other work, as a result of acts or omissions of Subcontractor or his agents or employees.
• Any application for payment may be reduced by Contractor on account of claims filed or reasonable evidence indicating probability of filing claim.
In most cases the above terms place all risk onto the subcontractor with all inclusive and limitless language and further limit any right of the subcontractor to dispute or seek redress. In some cases, the terms themselves are well intended but unreasonably inclusive by using such words as any or all which places risk onto the subcontractor for circumstances that may not be within his control. For example, a subcontractor could be held responsible for an excusable delay (such as weather), if that delay in turn delays a follow-on subcontractor. The GC could argue that if overtime or weekend work was necessary to recover the time lost due to bad weather or any other reason, the subcontractor was obligated to accelerate the work as he is required to perform work in such a manner as not to delay any other work. The subcontractor’s failure to recover the lost time would be considered an omission (failure to accelerate) that caused delay to the follow-on subcontractor.
Given the unbalanced nature of many GC/subcontractor agreements, reaching agreement to specific subcontract terms can be a daunting effort that can lead to very difficult negotiations.
While it may be perplexing why a subcontractor would ever agree to such unfavorable terms, many subcontractors often feel that they are not in a position to request changes to the contract terms proposed by the GC and fear that attempting to do so would risk the ability of the subcontractor to win the work. Other subcontractors, who have had prior relationships with the GC and/or the Owner, agree to sign off on the subcontract agreement based on the belief that, should a dispute occur, the GC would be fair and issues would be worked out, despite the actual language of the contract. In both of the above circumstances, the project can be completed with all parties satisfied if the work goes well and the parties act reasonably. However, if things do go wrong, the subcontractor can quickly get in over his head and find himself with little legal recourse. Things can get ugly very quickly and getting out could be very painful.
However, there is a better alternative that is fair to all parties and provides equitable protections to both the GC and the subcontractor. That alternative is use of the American Institute of Architects (AIA) standard form of agreement between a GC and subcontractor document A401™-2017. The AIA has a 136-year history of publishing uniform contracts with its first GC/Owner contract published in 1888. The AIA relies on a committee of experts from the construction industry and working alongside legal counsel to draft and update its documents on a regular basis. Owners, architects, contractors and legal professionals recognize AIA contract documents as an equitable contract format for the construction industry that has withstood the test of time and legal challenge. AIA documents can be viewed in their entirety online with appropriate water markings to preserve their copyright. Brief review of these documents quickly demonstrates the quality, organized structure and appropriate legal language that provides protection to all parties. As the AIA format is well known and broadly accepted within the construction industry, GCs should be receptive to utilizing this format when presented by a subcontractor who is simply looking for a fair and balanced agreement that can be accessed, edited and tailored for any project online for a very reasonable cost.
Disclaimer: No part of this article should be construed as legal advice and any contract, regardless of format, should be reviewed by appropriate legal counsel. The author is not in any way affiliated with AIA nor receives any financial benefit from the AIA for recommendation or use of AIA products.
About the Author: Nickolas Florez is a certified forensic claims consultant and former contracting officer for both USACE and NAVFAC with over 35 years of experience in construction and contracting with the federal government. Phone 808-224-0770 or 671-682-9020.
www.guamcontractors.org 18 MAY 2024
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