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Guam Contractors’ Association

CONSTRUCTION NEWS BULLETIN

Vol.52 Issue 12 DECEMBER2011

A Special Time of Year! Your one-stop location for Real Estate Development & Business Consulting.

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We're here to empower your communications... ADZtech & Public Relations has the creative and marketing firepower to get you there!

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CONTENTS DECEMBER2011

18 16

Feature Story

8

Update C ommittee S.A.M.E.

12 16

C ommittee Update Story F eature Pizza, Pop, and Power Tools

18

Feature Story

Story F eature Special Olympics

24 26

P hoto Highlights Headline C onstruction EEO

28

Headline C onstruction Economic Loss

Thank you to the Management and Staff of Horizon Lines for the many years of SUPPORT!

Doctrine

30

Headline C onstruction GCA Scholarship

31

G arrison Report

The Chamorro phrase for “Merry Christmas and a Happy New Year” is:

Felis Nabidåt Yan Åñu Ñuebu brought to you by "Learn Chamorro" www.learnchamorro.com

2 | DECEMBER2011

CONSTRUCTION NEWS BULLETIN

Guam Contractors Association Building Guam since 1959

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Hawaiian Rock Products provides products and services to meet all your construction needs. With our large fleet of equipment, multiple batch plants and reliable workforce, your projects are sure to be met with unparalleled efficiency. No job is too big or small. Fleet of Equipment: • 49 RMC Transit Mixers • 17 Dump Trucks • 8 Concrete Pumps • 11 Tractor Trailers • 6 Cement Tankers • 2 End Dumps

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On behalf of GCA Management and Staff and their Adztech team, we would like to wish everyone a Merry Christmas & Have a Prosperous and Happy New Year!


THETEAM

THEDIRECTORS PRESIDENT James A. Martinez, GCA CHAIRMAN William “Bill” Beery, Tutujan Hill Group VICE CHAIRMAN Robert Salas, Landscape Management Systems PAST CHAIRWOMAN Chit Bathan, Ace-Builders SECRETARY/TREASURER Tom Anderson, Black Construction ASSOCIATE DIRECTORS: Edward Untalan, First Hawaiian Bank Paul Calvo, Calvo’s Insurance Vincent Davis, Hawthorne Pacific Corp Ray Yanger, Matson Navigation CONTRACTORS DIRECTORS: Tom Nielsen, Maeda Pacific Corporation Juno Eon, Core Tech International Mike Venezia, Hensel Phelps John Robertson, AmOrient Art Chan, Hawaiian Rock Louis De Maria, dck pacific guam LLC

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Guam Contractor’s Association (GCA) in conjunction with AdzTech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA. While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, staff, GCA members, GCA Board of Directors and advertisers. For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at adztech@teleguam.net. Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 718 N. Marine Corps Drive, Suite 203, East West Business Center, Upper Tumon, Guam. To find out more about how you can become a GCA member contact Chantel Cruz, Guam Contractors’ Association at (671)647-4840/41, or fax (671) 647-4866 or email to gca@teleguam.net. Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

CONSTRUCTION NEWS BULLETIN

PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Marc Mendiola PRODUCTION: Geri Leon Guerrero Christopher “Taco” Rowland Paul Mendiola Bill Tenorio PHOTOGRAPHERS: Marty Leon Guerrero Jay Forsyth Geri Leon Guerrero EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson Grace Donaldson Jay Forsyth Todd Thompson David F. Macaluso GCA STAFF: Chantel Torres-Cruz Francine Arceo Desiree Lizama COVER: Excellence in Construction winning eagle.

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COMMITTEEUPDATE

LEED GOLD CERTIFICATION BEQ FACILITY AT NAVAL BASE GUAM Guest speakers at the November meeting of SAME Guam Post were Brian Fischer, Project Manager and Josh Kling, Project Engineer, for Hensel Phelps Construction Co. in Guam. Hensel Phelps completed the BEQ Facility at Naval Base Guam. The RFP for the project required LEED silver

certification. However, Hensel Phelps achieved Gold certification, thereby exceeding the requirement. Hensel Phelps provided an inside look at achieving this LEED Gold certification. Key points from their presentation are outlined below.

PROJECT OVERVIEW • Design-Build Contract Awarded on 4/30/09 • 140-Unit Bachelor Enlisted Quarters • Three-Story Precast Concrete Structure • BBQ Pavilion, Bicycle Canopy, and Volleyball Court • Stand-Alone Precast Utility Building • Photovoltaic and Solar Domestic Hot Water Systems • Completed on 5/12/11 • RFP required LEED Silver to be achieved - LEED Gold was proposed and achieved by the Contractor PROJECT “DESIGN-BUILD” TEAM Contractor: Hensel Phelps Construction Co. Design: Jacobs (LEED Accredited Professional) Baldridge & Associate Structural Engineers Pacific Test and Balance (Mech. D-B Sub) Pacific Soils Engineering & Testing, Inc. Belt Collins Rocky Mountain Precast

LEED VERSION 2.2 CHECKLIST

LEED RESPONSIBILITIES • Entire “Design” Team • LEED Professional (Part of Design Team) – Registration – LEED Plan/Checklist Development – Design Coordination/ Communication – “Specifications” – Verification/Documentation – Submission • Construction Staff – Material Purchasing per Specifications – IAQ Plan Implementation – Recycling Plan To join SAME Guam Post, logon to SAME.org and proceed to New Membership. 8 | DEC EMBER2011

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OVERALL SITE PLAN

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SOLAR DOMESTIC HOT WATER SYSTEM • 45 panel array equating to approx. 1,825 sq. ft. of surface area • Water circulates from the array to a 3,000 gallon storage tank located in the utility building. • At peak solar gain, the array will produce a 50°F temperature rise at a flow rate of 9 GPM. (3,000 gal. storage tank recovery in three hours.) • Water in the storage tank is stored at a temperature range between 140 and 160°F. • Water entering the building is between 110 and 120°F. • This system at half capacity would save approx. 72,000 kWh per year.

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COMMITTEEUPDATE

PHOTOVOLTAIC SYSTEM • 80 panel array equating to approx. 900 sq. ft. of surface area. • The electricity generated by the PV array offsets the energy needs of the BEQ site lighting. • The PV system produces approx. 42 kWh’s per day or 15,300 kWh’s per year.


COMMITTEEUPDATE

GEO-EXCHANGE SYSTEM • Two 18” source wells providing cool subsurface water for the building cooling system. (In lieu of a cooling tower) • One 24” well for tempered water injection back into subsurface water table. • Eliminates chemical treatment of cooling tower water. Approx. savings of $10,000 per year. • Eliminates makeup water. Saves approx. 1.45 million gallons of makeup water per year. • Eliminates maintenance and replacement costs of cooling towers • No cooling towers fans and reduced HP of the primary pumps reduces energy costs. • Reduction in overall maintenance costs

SUMMARY LEED Gold Certification Achieved • 49 of 69 total points awarded • 1.45 million gallons of makeup water saved per year • 87,300 kWh of electricity saved per year • 45% of waste diverted from landfills • Misc: daylighting (reduces energy consumption), low-flow water fixtures (reduces water use), EnergyStar appliances, fluorescent lighting provided throughout the building, room-independent thermostat control, maintenance and equipment replacement cost savings, etc. Prepared by John M Robertson PE, Treasurer of SAME Guam Post (From the Hensel Phelps Presentation of November 2011)


COMMITTEEUPDATE

Military, Government and Labor Relations Update (December 2011) The House bill does not contain a similar provision.

DoD Position/Impact: The Department strongly objects to the limitation on execution of United States or Government of Japan (GoJ) funds to implement the realignment of USMC forces from Okinawa to Guam as envisioned in the U.S./Japan Realignment Roadmap and Guam International Agreement; this will also impede critical planning and design efforts. This provision would unnecessarily restrict the �lexibility of the President to execute our foreign and defense policies with a close strategic ally.

By John M. Robertson The Full Senate Rati�ies the SASC Report Things have been moving rapidly in Washington the past few weeks but not in the direction we would have preferred. The so called super-committee failed to reach any kind of compromise agreement between the House and the Senate on the one hand and Republicans and Democrats on the other. The full Senate then met and rati�ied most of what the Senate Armed Services Committee had proposed. This was driven by Senators McCain and Webb with support of the SASC Chairman, Carl Levin. The bill passed by a vote of 93 to 7. The Senate bill calls for the establishment of a commission to study the U.S. Force posture in the East Asia and Paci�ic region. The bill also requires DOD to study the feasibility of relocating Air Force assets at Kadena Air Base on Okinawa and moving Marine Corps aviation assets on Okinawa to Kadena Air Base, rather than building an expensive replacement facility elsewhere on the island. The National Defense Authorization Act (NDAA) then went to the Senate-House Conference Committee to reconcile differences between the Senate and House versions of that bill.

The Department of Defense Weighs In Meanwhile, on 2 December, the Department of Defense submitted its “Pr iority Appeals” to the Conference Committee with a rather strongly worded statement regarding the Senate version of the NDAA concerning the military buildup on Guam. It reads, in part, as follows:

“ Language/Provision: Senate section 2208 of the Senate version places a conditional prohibition on the obligation and expenditure of United States (FY2012) and Government of Japan funds to implement the realignment of USMC forces from Okinawa to Guam as envisioned in the U.S./Japan Realignment Roadmap and Guam International Agreement.

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The Government of Japan has demonstrated its commitment to the U.S./Japan agreement by transferring $834 million to the United States and by appropriating $167 million in Japan’s current �iscal year for transfer to the U.S., and another $415.5 million for utility system improvements on Guam. The failure of the U.S. Congress to authorize the obligation or execution of U.S. or GoJ funding will signi�icantly complicate ongoing discussions with Japan regarding the implementation of agreements, both with respect to the Guam buildup and the Futenma Replacement Facility. The Department urges exclusion of the Senate provision.”

Senate-House Conference Committee Decides In spite of the strong exhortation from the DoD, the Conference Committee ended debate adopting most of what Senator McClain wanted. A 12 December Press Release from Congresswoman Bordallo announces the result:

“H.R. 1540 authorized spending and sets policy for the Department of Defense for �iscal year 2012. The bill provides $83.6 million to DoD for military construction projects on Guam. The Conference Report does not include authorization of appropriation for $33 million in funding for civilian infrastructure projects through the Of�ice of Economic Adjustment (OEA). The Conference bill also retains Senate bill section 2208 which prohibits the transfer of U.S. and Japanese military construction funding for Fiscal Year 2012 until certain conditions are met. Section 2208 does not apply to funds already received from the Government of Japan or U.S. funding from previous �iscal years. Section 2208 also restricts the transfer of any OEA funding in Fiscal Year 2012 to support Guam infrastructure requirements. This additional requirement is identical to amendments that Senator McCain offered during Senate �loor debate on the FY12 NDAA.

CONSTRUCTION NEWS BULLETIN

Ranking Member McCain raised serious concerns about U.S. force posture in the Paci�ic as well as objections to funding civilian infrastructure in Conference Committee. Senate leaders also had concerns over the lack of tangible progress over the Futenma Replacement Facility. These objections were unable to be overcome during the Conference Committee despite efforts by Congresswoman Bordallo and House Armed Services Committee Ranking Member Adam Smith. “I strongly oppose this Conference Committee report and urge my colleagues to vote against the legislation,” said Congresswoman Bordallo. “The bill delays the inevitable investments that are necessary on Guam to support realignment of forces, and it sends the wrong message to Japan at a critical time in the process for the Prime Minister to achieve progress in Okinawa. The bill completely ignores the Administration’s efforts and priorities in improving the posture of military forces in the Asia-Paci�ic region, and it further delays military construction projects that were initially slated to be awarded this �iscal year. The Conference Committee report lacks support for Guam and our military posture in the Asia-Paci�ic region, and the bill contains mixed results that are troubling to our national security. I will not sign the report, and if this bill is passed by the House and Senate, I will urge President Obama to veto this bill. The outcomes in this bill are a wake-up call to our community that we must speak with a single, uni�ied voice if we are to move forward with the build-up. We must also continue to push the Japanese to make progress on the development of a Futenma Replacement Facility in Okinawa, and I will continue to work with my colleagues in Congress and the Department of Defense to �inalize a master plan and preferred lay down so that we can proceed with military construction projects authorized for �iscal year 2012.”

A Military Threat Does Exist in the Asia Paci�ic Region It appears that our leaders in Washington, including especially Senators Webb, Levin and McCain are not following what is happening in the Asia Paci�ic region. There is an emerging threat that may require a military response at some point in the not too distant future. China is using money politics to gain in�luence in the island nations around us and we can be sure it is part of a long range plan. On 11 December Agence France-Presse reported the following from Beijing: “Chinese President Hu Jintao on Tuesday urged the navy to prepare for military combat,

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Several Asian nations have competing claims over parts of the South China Sea, believed to encompass huge oil and gas reserves, while China claims it all. One-third of global seaborne trade passes through the region. Vietnam and the Philippines have accused Chinese forces of increasing aggression there. In a translation of Hu's comments, the of�icial Xinhua news agency quoted the president as saying China's navy should "make extended preparations for warfare." The Pentagon however downplayed Hu's speech, saying that Beijing had the right to develop its military, although it should do so transparently. "They have a right to develop military capabilities and to plan, just as we do," said Pentagon spokesman George Little, but he added, "We have repeatedly called for transparency from the Chinese and that's part of the relationship we're continuing to build with the Chinese military." "Nobody's looking for a scrap here," insisted another spokesman, Admiral John Kirby. "Certainly we wouldn't begrudge any other nation the opportunity, the right to develop naval forces to be ready. "Our naval forces are ready and they'll stay ready." State Department spokesman Mark Toner said: "We want to see stronger military-to-military ties with China and we want to see greater transparency. That helps answer questions we might have about Chinese intentions."

Australia. China's People's Liberation Army, the largest military in the world, is primarily a land force, but its navy is playing an increasingly important role as Beijing grows more assertive about its territorial claims. Earlier this year, the Pentagon warned that Beijing was increasingly focused on its naval power and had invested in high-tech weaponry that would extend its reach in the Paci�ic and beyond. China's �irst aircraft carrier began its second sea trial last week after undergoing refurbishments and testing, the government said. The 300-metre (990-foot) ship, a re�itted former Soviet carrier, underwent �ive days of trials in August that sparked international concern about China's widening naval reach. Beijing only con�irmed this year that it was revamping the old Soviet ship and has repeatedly insisted that the carrier poses no threat to its neighbors and will be used mainly for training and research purposes. But the August sea trials were met with concern from regional powers including Japan and the United States, which called on Beijing to explain why it needs an aircraft carrier. China, which publicly announced around 50 separate naval exercises in the seas off its coast over the past two years -- usually after the event -- says its military is only focused on defending the country's territory.”

So What is Next The full House and Senate are scheduled to meet, possibly before you read this, to take �inal votes in each house on adoption of the NDAA. It is highly unlikely that they will vote down the legislation. The document then goes to the President and he could but will probably not veto it. On the bright side, the bill is not as detrimental as it might have been had Senators McCain and Webb got all that they wanted. So you are thinking we should do something to counter the in�luence a few senators have in the U.S. Senate where we have no representation. Members of our community are beginning to take lobbying action in Washington. This will not be as easy as battles we conducted over the Abercrombie Amendments or Project Labor Agreements in past years. It will take a lot of energy and a lot of money and we have to be prepare ourselves for such legislative warfare. Stay tuned! Senseramente, John M Robertson, Committee Chairman

The Government and Labor Relations Committee is open to all members of the association. Contact the GCA office for time and place of meetings.

Hu's announcement comes in the wake of trips to Asia by several senior US of�icials, including President Barack Obama, Defense Secretary Leon Panetta and Secretary of State Hillary Clinton. US undersecretary of defense Michelle Flournoy is due to meet in Beijing with her Chinese counterparts on Wednesday for military-to-military talks. Chinese Premier Wen Jiabao last month warned against interference by "external forces" in regional territorial disputes including those in the South China Sea. And China said late last month it would conduct naval exercises in the Paci�ic Ocean, after Obama, who has dubbed himself America's �irst Paci�ic president, said the US would deploy up to 2,500 Marines to

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COMMITTEEUPDATE

amid growing regional tensions over maritime disputes and a US campaign to assert itself as a Paci�ic power. The navy should "accelerate its transformation and modernization in a sturdy way, and make extended preparations for military combat in order to make greater contributions to safeguard national security," he said. Addressing the powerful Central Military Commission, Hu said: "Our work must closely encircle the main theme of national defense and military building." His comments, which were posted in a statement on a government website, come as the United States and Beijing's neighbors have expressed concerns over its naval ambitions, particularly in the South China Sea.


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FEATURESTORY

Possibly Building Guam's Female Workforce by: David F. Macaluso

It doesn't take as much brawn as it use to in the past to operate today’s power tools. With modern technology, most of the power tools used in the construction industry and at construction sights around the world are user friendly, making it easier for women to operate and do the same job in the field as their male counter parts can do today. According to James Martinez, President of the Guam Contractors Association, that is the main philosophy why GCA decided to offer the Pizza, Pop and Power Tools program. This one day event was designed to help educate and entice young women in the middle school and high school levels to consider a career in the construction industry. Martinez said, “We (GCA) coordinated Pizza, Pop and Power Tools in collaboration with the Guam Contractors

Trades Academy and the National Association of Women in Construction (NAWIC) because both organizations are involved in educating construction trades, but NAWIC caters more towards women in the industry. We then invited young women from around the island to the Guam Trades Academy Training facility.” Dr. Bert Johnston, Director at the Guam Trades Academy also adds, the Pizza, Pop and Power Tools event reached out to audiences that the Trades Academy doesn’t normally focus on or talk to, young women between the ages of 10 to 16 years old. He said, 51 percent of the islands population is made up of women, if we don't start talking with them about what we can offer to them at the Trades Academy, then we will lose half of our possibly participants. With only three weeks of planning, they were uncertain how many people would show up. But on the day of the event, over fifty Trades Academy instructors volunteered and close to eighty girls, ranging from 10 to 16 years old, participated. This October 17th event was scheduled to last for 4 hours, from 10AM to 2PM, but due to the large turn out, the program was extended until 4PM because they didn't want to turn anyone away.

“We took care of the back end of the Pizza, Pop and Power Tools event. We provided the instructors, tools, equipment and the facility to host this program,” said Johnston. “The front end was provided by GCA and NAWIC, they are the ones who supplied the Pizza and Pop.” Johnston tongue in cheek adds, “This event was a sampler, and there was more than pizza and pop being sampled. There were young petite women handling a framing hammer and effortlessly driving nails into wood. They quickly realized, let the tool do the work for them as opposed to them doing all the work. They were reminded that tools are there for a purpose, let the tool work for you. It's still work, but new technology makes it easier.” Barbara Burkhart, an architect and founding member of Guam's NAWIC said, "This was a big success because a lot of young women attended this event. It also gave them an opportunity to go through a series of activities at the Guam Trades Academy and it showed them construction related skills. The girls were introduced and became familiar with impact wrenches, air tools, they cut pipes, hammered nails and put screws into concrete blocks. This program also gave the girls a basic understanding of electrical work and what an electrician may do at a work sight.. The girls pulled wire through a conduit and actually hooked up a power outlet to a power source and measured it to see if there was electricity going through that outlet.” This carnival like event had eight different booths with various kinds of activities. But the girls collectively had a favorite booth, it was the computer simulator. That’s

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Johnston said, “It was fun and loud.” He pauses briefly and smiles, “I'm not sure who had more fun the volunteered instructors or the girls.” Martinez recalls the first time the girls came into the class room, “They appeared a little intimidated when they looked at all the equipment and tools. But through the guidance of our National Center for Construction Education and Research (NCCER) instructors, who are also instructors at the Guam Trades Academy, the girls felt more at ease and comfortable operating both the regular hand and power tools along with the pneumatic tools. Johnson adds, “As the day went on it seemed the girls confidence levels grew. Anyone who walked into the building, walked out 2 inches taller.” Martinez said, “Hopefully what these girls take away from this event is that the construction industry is not so bad. Especially now that they have a foundation and already know how to operate some of these tools.”

FEATURESTORY

because these young women were under the legal driving age and are not permitted to actually drive the forklifts or other heavy equipment at the academy. But instead, they all got a chance to use the computer simulators for heavy equipment operations. The simulators have the same hand and power controls as you would use in a real excavator and a payloader. The girls got first hand knowledge and experience about the proper operation of an excavator and payloader..

The main purpose for the Pizza, Pop and Power Tools event was to get more females interested into the construction industry because it is a viable occupation. There's a market out there, especially with visa waiver program with Russia. This will eventually increase Guam's tourism market. It will not only create jobs in the tourism industry, but it will also create jobs in the construction sector. With the possibility of an influx of more tourist, there's going to be a need for additional infrastructure, maybe more hotels or recreational facilities and that’s going to require construction of these structures. A lot of hotels will probably be remodeling, adding on additional space to accommodate the new tourist. Martinez said, “We are really trying to focus on getting more female interested into this industry because there’s a market out there and construction will be a long term occupation that some of these women can get themselves into.” Today the Pizza, Pop and Power Tools project introduced young girls to the endless possibilities of the construction industry. But in the years to come, these girls will be women, who could essentially be a skilled work force in the construction industry on Guam, making up a working middle class that this community badly needs. And as for when the next Pizza, Pop and Power Tools will take place, that’s uncertain. But Johnston is very optimistic that there will be another on in the future, possibly sooner than later. “Because we got such a great turn out, we are not sure if we are going to do this once a year, twice a year or three times a year. That decision hasn't been made yet. But we know we are going to have another one,” said Johnston.

Both the Trades Academy and GCA hope some of the girls who participated in this program get a spark and become interested in this field. They want this program to serve as a stepping stone to encourage the girls to consider a possible career in the construction industry after they graduate from high school. This doesn't necessarily mean just in the trades such as an electrician, carpenter or plumber. There are other occupations that may be a better fit such as an architect, engineer, project manager or safety manager. www.guamcontractors.org

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FEATURESTORY

Special Olympics On Guam by: David F. Macaluso

Its the smiles on the athletes faces during their competition, the sense of pride after each event or self admiration when a medal is placed around their neck. These special athletes are faced with difficult challenges each and every day, from the time they wake up to the moment they go to bed. Four times a year, the spotlight is on them and they are the superstars. The Special Olympics Guam ensures that light will always be on them making them forever special. For the past 35 years the Special Olympics has been thriving on Guam, bringing competitive sports activities to island athletes. But prior to the games arriving on Guam, the organization got its start nine years earlier, led by Eunice Kennedy Shriver, when the first International Special Olympics Summer Games were held at Soldier Field in Chicago in 1968. According to Frank Florig, Special Olympics Guam Executive Director, "For Guam to showcase this event just 9 years after the Chicago debut, in hindsight, is a phenomenal task, considering the way news traveled back then and at that time there was no information superhighway." Track and field was the first event to come to the island and it still remains

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today’s most popular event with the Special Olympics. In March 2011, the sport yielded over 400 athletes and more participants are expected to join next year in 2012. Florig said, “ I’ve been with this organization for eight years and the number of athletes gradually increased during that time. When I first got on board, there was a little over 150 competitors for track and field. We think we can get more participants, but we need to do better with our outreach programs. I also believe we need to try to get the word out faster.” The Special Olympics just recently launched its website (www.specialolympicsguam.org/) and its now on several social networks, such as Twitter and Facebook, in hopes of reaching out to more athletes and spreading news about future events held throughout the island, to gain more volunteers and to help register competitors for the games. In addition to the track and field events held in March, the Special Olympics Guam also has games in every quarter. There’s swimming in June, Bowling in October and Golf in December. The numbers of competitors for those events are also up. In 2010 there were only had 35 swimmers, but this year it

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FEATURESTORY

went up to 69. Bowling had 70 competitors in 2010 and in 2011 it more than doubled to 160 and golf, the newest sport only in its second year, went from 35 to 49. Florig adds, “This year has been our finest year in terms of growth. We increased the number of athletes, more families are coming out to show support and schools are getting behind their student athletes. It is becoming more of a family event. But most importantly, the increase in the numbers of athletes was made possible by the support from the entire community. This non profit organization received help from numerous volunteers, countless sponsors, Gov Guam, the U.S. Airforce and U.S. Navy.” The Special Olympics was originally organized to provide sporting opportunities for those who are mentally challenged, but on Guam, the games are opened to athletes regardless of ability or degree of disability. Marlon Molinos, Chairman of the Special Olympics Guam, first got involved when he turned eight years old, the first eligible year an athlete can participate in the games. Since then he has been link to this organization. He’s gone from being a child, to athlete and now a leader in the Special Olympics.

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“I started with the Special Olympics 27 years ago competing in all four events,” said Molinos. “Back then basketball was offered instead of golf. Once I turned 20, I felt I had to give back to the organization and became a volunteer. I wanted to get a different perspective of the games and get involved behind the scenes. When you are an athlete you just show up at the event and compete. But you don’t really see the inner workings that goes into this event.”

cared for by the government, he thinks in most cases its true. But he feels there is one area that the government needs to be improved. It is the need to keep the disabled community busy with different activities within the community.

Although he is the chairman, Molinos remains active as a competitor in his favorite sport which is bowling. Back in 1995, he earned the honors to be a representative for Guam on the bowling team at the World Games held in Connecticut. A feat that he will never forget.

Molinos agrees, “When you grow up being home bound your entire life, you look for any reason to get out of the house. That’s why all the athletes including myself look forward to the Special Olympics. Its important to keep this program going and I hope it continues to grow long after I’m gone. I’ve jokingly told people I’m going to die before I leave this organization. This is my life.“

Molinos adds, “I would like to remind people that there is no age limit for the Special Olympics. Especially if you are an adult and already graduated from high school. That is something I think people don’t realize. The Special Olympics is a program that you can participate in until you can no longer walk or if you feel like you no longer want to do it anymore. Our oldest athlete is in the 50's.” According to Florig, He believes there's a real misconception with the public that our disabled community is always

CONSTRUCTION NEWS BULLETIN

Florig said, “ We need more physical events such as running and other competitive sports. I think we all have a competitive spirit inside us and we need to tap into that.

According to Florig, This program helps in us better understanding people with disabilities and for those who are disabled, its important for them to realize that they are also an intricate part of this world. This is their program.”

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FEATURESTORY

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PHOTOHIGHLIGHTS

November Luncheon

November 30th,2011 Onward Beach Resort, Guam

East Island Tinting’s Grand Opening November 1st, 2011 Newly Renovated East Hagatna location

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CONSTRUCTIONHEADLINE

Affirmative Action Plan?

What is that?

Affirmative Action is a set of goal-oriented management policies and procedures to eliminate barriers to employment; creating an environment where there is an organizational-wide commitment to ensure all company policies and practices are free of discrimination on the basis of race, color, creed, religion, national origin, gender, sexual orientation, disability, veteran status, genetic disposition, age, marital status or status with regard to public assistance. In particular, federal contractors and subcontractors, through their various policies, processes and programs, must be encouraging women and minorities to apply, train and develop sufficient skills to advance in their respective fields. If you are a federal contractor or subcontractor, chances are you are probably required to take affirmative action to ensure you are in compliance of the various Executive Orders and Acts, as amended - Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the affirmative action provisions (Section 4212) of the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA) and more recently, Executive Order 13496, which requires that you provide notice of employee rights under the National Labor Relations Act (NLRA). What are some of the steps you should take.

1

Have a policy statement that essentially states that your organization is an equal employment opportunity and affirmative action employer. That you will not discriminate on the basis of the protected classes (listed in the first paragraph of this article). Additionally, your company will ensure that all practices are free of discrimination in all aspect of the employment such as recruitment, promotions, demotions, termination of employment, selection processes, compensation and training.

26 | DECEMBER2011

2

Second step requires that you actually back up the statement with some policies. If you are in the construction field, there are 16 steps to affirmative action that need to be written and implemented. If you are a Supply and Service Contractor, then there are other sets of requirements. Many of the requirements for both the Supply/Service Contractor and Construction contractors overlap, but there are also differences. Not all companies need to have a written affirmative action plan, but all companies need to have policies in place that ensure you practice affirmative action that ensures equal employment opportunity.

3

Back up your policies with procedures or Standard Operation Procedures (SOP). For example, your policy states that you encourage women and minorities to apply. Your SOP should then include your recruitment steps, such as all job announcements will be sent Women's Affairs, or to nontraditional professional women's group such as Soroptomist or ask employment services companies to refer their clients, particularly women and minorities. Or you might have a recruitment practice that encourages your employees to encourage their wives, girlfriends, daughters, etc to apply for the trades positions. You could also participate in outreach programs or job fairs. Consider approaching Guam Employment Services or OneStop Career Center/AHRD to assist you with the recruitment for women and minorities.

by: Grace Donaldson

period meetings with your supervisor where you re-emphasize the importance of these policies.

5

Review your policies, procedures, practices and programs on an annual basis. Review your staffing to determine if your organization is having success in recruiting women, minorities, veterans and individuals with disabilities. Review your various activities and policies to determine if your current practices negatively impact groups of individuals from the management track.

L

ast but not least, document everything. Document when you have meetings, include the names of the meeting participants. Document any job fairs and outreach programs your company may have participated in, document all the applicants that walk through your doors looking for a job. Document all of your promotional activities and as any good HR Manager will tell you, document, document, document.

4

Conduct training. Training is key in ensuring your employees, especially your supervisors and managers are familiar with your policies and practices it daily in the workplace. At the very least, on an annual basis, you should be conducting training on prevention of discrimination and harassment in the workplace. You should be having

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CONSTRUCTIONHEADLINE

GUAM ADOPTS “ECONOMIC LOSS DOCTRINE” IN CONSTRUCTION CASES

by: Todd Thompson

Recently, the Guam Supreme Court made a ruling of first impression that could have major ramifications for the Guam construction industry during the expected military buildup and beyond. Specifically, the Guam high court held that Guam follows the so-called “economic loss doctrine” in construction dispute cases. The ruling should be of major interest to contractors eyeing Guam construction projects. The economic loss doctrine is a rule of jurisprudence that generally prevents commercial contractors from suing each other for tort liability (negligence) in connection with a construction project they have worked on in common. Commentators have observed that the doctrine promotes commercial activity by leaving it to the contractors to negotiate their own rights and liabilities as part of the contracting process, and protecting them from the risk of unlimited tort damages awards in the event of a construction delay, mistake, or mishap. The doctrine has been adopted, in one form or another, by the courts of nearly every American jurisdiction. However, until now no Guam appellate-level case had ever addressed the applicability and scope of the doctrine here. That is significant, because one of the purposes of the doctrine is to reduce uncertainty

in the law and thus enable contractors to intelligently shape their contractual relationships based on the settled law of the jurisdiction. Without any meaningful guidance on the issue from the Guam courts, contractors were previously left to speculate as to whether the doctrine applied at all and if so to what extent. The Guam Supreme Court confronted the issue in the case of Maeda Pacific Corp. v. GMP Guam, Inc., 2011 Guam 20, which involved the collapse of a reservoir tank on Anderson Air Force Base in 2007. The significance of the Supreme Court’s ruling, however, goes far beyond that particular case. The court’s opinion enables contractors and their attorneys to minimize exposure to liability and maximize their recovery in the event of a construction accident or dispute. A savvy contractor or subcontractor can now more intelligently evaluate the risks and opportunities of getting involved in a project during the bidding process and shape its own contract accordingly. For example, contractors can effectively limit their legal liability by inserting clauses in their contracts requiring that they be named as intended beneficiaries to all subcontracts, limiting their liability to a certain dollar amount (or an amount coextensive with applicable insurance coverage), or even providing for full

indemnification in the event of a lawsuit. In light of the Supreme Court’s adoption of the economic loss doctrine, contractors now have an assurance that their contractual limitations will be respected by the courts, and not disregarded by imposing unlimited tort liability. Significantly, the court recognized that the economic loss doctrine should be applied broadly—to all contractors and subcontractors in a project, including architects, engineers and other design professionals—regardless of whether the parties are in privity of contract with one another. The court recognized that construction projects frequently involve chains or webs of interrelated agreements between the owner, prime contractor, subcontractors and materials suppliers, all of whom have an interest in avoiding the risk of unlimited tort liability even though their particular contract was signed by only two of the many players involved in the project. The court rejected the prime contractor’s invitation to limit application of the doctrine to cases where no property damage is involved and to situations where the plaintiff has specific alternative contract remedies. To the extent that the Supreme Court’s ruling eliminates uncertainties in the law it should come as welcome news to contractors doing business on Guam.

Prime Contractor Subcontractor Supplier

28 | DECEMBER2011

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CONSTRUCTIONHEADLINE

GCA to award first ever scholarships to high school students from Okkodo High School

Guam Contractors Association Building Guam since 1959

by: Jay Forsyth

Victoria Sandlin (fourth from the left), a junior at Okkodo High School, speaks after receiving a scholarship from the Guam Contractors Association. Sandlin and Joshua Sebastian, a senior at Okkodo High School, (second from left) were presented the first ever scholarships awarded to high school students for training at the GCA Trades Academy. They will be enrolled in the GCA Trades Academy's CORE curriculum beginning January 2012. Each scholarship is valued at $2,500, which includes tuition, books and lab fees at the GCA Trades Academy.

About the GCA Trades Academy's site to all other Level 1 craft curriculum. Its modules cover topics such as Basic Safety, Communication Skills and Introduction to Construction Drawings. Completing this curriculum gives the trainee the basic skills needed to continue education in any craft area he or she chooses. The GCA Trades Academy is a training center accredited by the National Center for Construction Education and Research. NCCER maintains a national registry that provides transcripts, certificates, and wallet cards to individuals who have successfully completed the classes.

Pictured from left to right: Sebastian's father R.C. Gallinari, Sebastian, Guam Contractors Association President James Martinez, Sandlin; father James Sandlin, Okkodo High School Counselor Wendy Medina and Okkodo High School Principal Kenneth Denusta.

For more information about NCCER : www.nccer.org For more information about the Guam Contractors Association : www.guamcontractors.org Find the GCA on Facebook : www.facebook.com/GuamContractors Find the GCA Trades Academy on Facebook : www.facebook.com/GCATradesAcademy

About the GCA scholarships ... The 2011 GCA golf tournament raised $13,000 for scholarships. In years past, the proceeds funded adults to train at the GCA Trades Academy. This year, the GCA Education & Training Committee chose to fund scholarships for training opportunities for high school students at the GCA Trades Academy. The scholarship recipients will be enrolled in the GCA Trades Academy's CORE curriculum beginning in January 2012. The value of each scholarship is $2,500, which includes tuition, books and lab fees at the GCA Trades Academy.

More scholarships from this fund will be awarded to high school students in 2012. Application availability will be announced. 30 | DECEMBER2011

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to Sell More Construction Services? by: Ted Garrison

During seminars, I usually refer to the need for contractors to focus on value, instead of attempting to compete on price. When you compete on value, you are able to use your innovation, which allows you to differentiate your services from the competition’s. When the construction industry competes on price, it is competing as a commodity. It doesn’t matter that you don’t think what you offer is a commodity or, in fact, that it isn’t a commodity; if the owner is purchasing your service based on price, he thinks your product is a commodity and that is all that matters. However, this position often causes a considerable amount of pushback from seminar attendees. They argue that prospects typically care about only price. I try to explain that what they must to do is educate the prospect. Their response to that is they don’t want to listen. My answer is you are talking to the wrong people. A recent study by the Corporate Executive Board Sales Executive Council found that many traditional sales beliefs are invalid. Their study found that most salespeople fell into one of five categories: The hard worker (21%) The relationship builder (21%) The challenger (27%) The lone wolf (18%) The problem solver (13%) There is nothing new about that list, but what is interesting is which style is the most effective. We often hear that we need to build relationships with clients. You need to send the message that you are here to makes things happen. What may surprise many is that this group had the worst results with only 7 percent of those using this style being classified as star performers. Professor Dean Kashiwagi at the Performance Based Studies Research Group at Arizona State University advises clients not to select contractors based on relationships. Of course, if you work with someone and he or she does a good job, it’s only natural to develop a

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strong working relationship based on common goals, collaboration and performance. What contractors should avoid is trying to build relationships based on social interaction. This conclusion isn’t unique to Kashiwagi. In earlier Garrison Reports, I’ve discussed how Stephen Covey and Russell White have both emphasized the importance of performance, instead of favors. In the 1990s partnering developed a bad name in the construction industry. Clive Thomas Cain, in Profitable Partnering for Lean Construction, explained the reason for that problem. Partnering in the construction industry, he wrote, should be on the supply side of the supply chain, not on the demand side. Partnering on the supply side allows contractors, designers and vendors to work together over many projects to improve their processes to eliminate waste and problems. Since most clients have a limited number of projects, it’s difficult at best to develop a true partnering process with the construction team. Attempting to partner with clients results in establishing false expectations and ends with undelivered expectations from the client’s perspective. Largely this approach has a fundamental flaw because despite the fact the relationship builders build strong personal relationships by being likable and generous with their time, they are in the reactive mode. In this mode the client takes the lead and contractor responds to the client’s needs. If the construction team represents the experts, wouldn’t it be better if the experts led the process? The challenger, the winner with nearly 40 percent of i t s people in the star performer category, does take control of the process. The challenger changes the tone of the discussion. Instead of asking the prospect what keeps her up at night, he tells the prospect what should be keeping her at night. The challenger is excellent at teaching.

I make the bold statement during my seminars that contractors need to get out of the construction business. I don’t mean they should stop building things because that’s what they do. However, they need to change the paradigm. Contractors need to get owners to focus on life-cycle costs, not just their initial capital investments. They certainly need them to look at the total cost of construction, not just the construction bid. The contractor needs to coach and advise its prospects on how to create a better solution for their construction-related capital investments. To win these debates requires dominant proof of performance. Only by having consistent provable performance in the past can owners reasonably anticipate similar performance from that contractor in the future. Of course, prospects may be uncomfortable with this approach at first, but the challenger has the ability to be both assertive and maintain control over the process without being overly aggressive, annoying or abusive. The contractor needs to stand firm when the client pushes back. However, when the challenger can address the prospect’s needs from the prospect’s perspective and provide dominant proof of the past results in similar situations, prospects begin to look at the contractor in a different way. Whether you are a client or contractor who wants to learn more about a value-based approach on your projects to ensure superior value and performance, I would suggest you learn more about the best-value concept. Go to www.TedGarrison.com/best-valuemodel.

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DECEMBER2011 | 31

GARRISONREPORT

What Do You Need to Do


GCA Construction News Bulletin December 2011  

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

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