GCA Construction News Bulletin May 2011

Guam Contractors’ Association

CONSTRUCTION NEWS BULLETIN

Vol.52 Issue 05 MAY2011

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CONTENTS MAY2011

20 18

Feature Story

Feature Story

6 12 14

B oard News C ommittee Update Headline C onstruction ABC

16 18

G uam’s Future Story: F eature Islandwide Job Fair

20

Story: F eature B.I.G. Shop

24 27 28 30 32 35

P hoto Highlights G arrison Report S mall Business A round the Bench C rane Critique Corner N ew Members

THETEAM 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.

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PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Marc Mendiola PRODUCTION: Geri Leon Guerrero Christopher Estioca Christopher “Taco” Rowland

Ted Garrison Richard Mesa GCA STAFF: Chantel Torres-Cruz Francine Arceo Desiree Lizama COVER: GDOL, OSCC, GCA Job Fair

PHOTOGRAPHERS: Marty Leon Guerrero Marc Mendiola Christopher “Taco” Rowland Jay Forsyth EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson Dave Barnhouse Gennette Quan Simmons Jac Perry Guzman Kathleen Garrity

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BOARDNEWS

Guam Contractors Association Members Elect New Board for FY 2012 The Guam Contractors' Association held their Board of Directors election during the April 20th General Membership Luncheon meeting at the Sheraton Laguna. Elected to serve on the 2011 – 2012 GCA Board of Directors are Tom Anderson of Black Construction Corp., Art Chan of Hawaiian Rock Products., Louis DeMaria of dck pacific guam LLC and Rob Piper of Hensel Phelps Construction Co. John Robertson of AmOrient Contracting shall serve as an alternate board member. Mr. Art Chan and Mr. Louis DeMaria shall serve a two-year term by virtue of being the top two

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vote-getters in this year’s election. The newly elected contractor board members now join this year’s holdovers Chit Bathan, immediate past chair (Ace Builders), Bill Beery, chairmanelect (Tatujan Hill Group LTD), Robert Salas, vice chairman-elect (Landscape Management Systems), Tom Nielsen, board member (Maeda Pacific Corporation) and Juno Eun, board member (Core Tech International).

companies. This year’s selection from the associate members shall serve two-year terms effective May 1, 2011.

The full Board of Directors will hold their first official meeting of the fiscal year on May 4, 2011 to elect their secretary/treasurer and committee liaisons. A swearing-in ceremony is planned for May 18, 2011 during the May GCA general membership luncheon meeting.

The newly-elected contractor board members will meet later this month to select four directors from GCA’s associate member

Chairman William “Bill” Beery, Tutujan Hill Group

Vice Chairman Robert Salas, Landscape Management Systems

Secretary/ Treasurer Tom Anderson, Black Construction

Contractor Director Robert Piper, Hensel Phelps

Contractor Director John Robertson, AmOrient

Contractor Director Art Chan, Hawaiian Rock

Contractor Director Tom Nielsen, Maeda Pacific Corporation

Associate Director Ray Yanger, Matson Navigation

Associate Director Vincent Davis, Hawthorne Catepillar

Contractor Director Louis De Maria, dck pacific guam LLC

Contractor Director Chit Bathan, Ace-Builders

Associate Director Paul A. Calvo, Calvo’s Insurance

Contractor Director Juno Eun, Coretech

Associate Director Ed Untalan, First Hawaiian Bank

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COMMITTEEUPDATE

Military, Government and Labor Relations Committee Update (May ‘11)

LOOMING Setback to the military buildup on Guam

By John M. Robertson Before going to the main topic for this month, something must be said about the Navy SEALS. The news coming out of Pakistan a few weeks ago came as a surprise, being almost ten years after the terrorist attack on the United States of America. The few courageous SEALS that carried out the mission to rid the world of public enemy number one trained many years for a mission such as this.

The mission was, according to available information, carried out almost flawlessly against almost impossible odds. SEALS on Navy Base Guam possess the same proficiencies and are poised to carry out a similar mission if called upon. The SEALS did not act alone though, but were supported by other branches of military service and the nations’ intelligence agencies. America can rest a little bit easier knowing what these brave men and women are capable of.

Can we now expect an Exit Strategy to plans for the Marine Corps relocation to Guam?

As is well known, a high level delegation from the U.S. Senate made a visit to Guam recently and met with officials of the local Government including the Governor and members of our Legislature. Democrat Senator Carl Levin, Chair of the Senate Armed Services Committee along with Democrat Senator James Webb, member of the Senate Armed Services Committee and Committee on Foreign Relations were treated to the usual shake down by the Guam Legislature. The Democrat controlled Legislature took the position of being somewhat willing to accept the military buildup on Guam but at a price that included self-determination, war reparations, all infrastructure upgrades at no cost to rate payers, new facilities for schools, hospitals and public safety at no cost to GovGuam, and much more. Highly influential Senator Levin expressed concern that the price demanded by the Guam senators was too high and that the relocation of Marine Corps

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elements from Okinawa to Guam may be so expensive that it is not affordable. The mood in Washington these days is to cut costs wherever possible and that includes military budgets. Some of Senator Levin’s pessimism no doubt comes from the Pentagon’s reluctance to shoulder the total cost of the program, especially those costs dealing with socio-economic issues. His pessimism is also fueled by the perception that the military is not welcome on Guam, at least in any greater presence than now exists. This is not the first time that a high level delegation from Washington has been greeted with confrontation, a zeal to demand what our Legislature has not been able to obtain from the Federal Government. The proposition has been that if the U.S. wants the support of Guam for the buildup, it has to pay for it all, and give what the Legislature believes is important to the people. Perhaps a good intention, but nobody has asked the community what they want. It is wrong to believe that the people of Guam feel that the jobs, a better infrastructure and a way out our debt, real benefits the buildup can bring, is something the people will refuse if a vote for independence, or reparations for the progeny of those that suffered through WWII is not provided. If that is what our Legislature believes, they are not representing the best interests of the people.

Senator Levin was informed that Guam Senators do not represent the average person on Guam or even the majority of Guam citizens. We like most American communities, have a very silent majority. For example, the elected village mayors, who are closest to the local citizens, and the Mayors Council are firmly in support of the military buildup and do not agree with members of the Legislature in seeking to extract the concessions the Legislature has determined most important from the Federal Government in return.

Senator Levin responded by saying that Guam senators are the elected representatives of the people and therefore their views

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have merit in his eyes, otherwise, the people of Guam would not have elected them. He mentioned that if the Guam senators are so opposed to the buildup, then that is probably the view of the people as well. Senator Levin also expressed concern that members of the military do not have the same reputation as good members of the community. He was informed that if he spoke to village mayors he would get the opposite impression. Members of the military are very well respected in the Guam community.

Various military commands have a sister village relationship with most villages on island. They carry out village and school improvement projects together. They participate in sports and fiestas together in just about every village.

Senator Levin said that was not the impression he got from the Guam senators.

A few days after the Levin-Webb visit, there was more bad news out of Washington. It was learned from a reliable source that the Senate Armed Services Committee was tasked with developing an “exit strategy” in relation to the plan for relocating 8,000 marines with 9,000 dependents to Guam from Okinawa. In essence, the exit strategy will place the blame on the people of Guam for cancelling the military buildup since the people, as exemplified by their Legislature, do not want the military buildup. There is a mood in Washington at this time to reduce spending wherever possible and by eliminating the substantial and growing cost of the Guam military buildup, much will have been accomplished in that direction. Meanwhile, the exit strategy will provide a face saving way out by blaming the major change of course on the people of Guam.

A campaign is needed to counter the negative news coverage about the buildup and to reliably measure the true sentiment of the citizens of Guam. In past surveys, as many as 80% of respondents favored the buildup.

The Guam Contractors Association has been

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The cost of the campaign is significant but is a necessary expense to ensure there is no “exit strategy” that would preempt what we have invested in and have been waiting for. The

group will be approaching companies to explain how they can get involved in a movement that includes community groups, service organizations from all strata of our community, as well as mayors, and concerned citizens willing to stand up and voice the truth. The people of Guam support the Guam buildup.

The vocal minority that opposes the military buildup have contributed in various ways to generate negative news coverage and shape public opinion against the buildup. Now, the silent majority must find their voice and use this campaign n to project a unified message to the elected leadership here on Guam and in the nations’ capital. There is little time to carry out this all important mission.

traditional culture with more money in the economy •Enhancement of opportunities in higher education due to a growing job market •Increase in tax revenue through a broader tax base – improved government services While the Guam Legislature has, in general, been pushing for more and more concessions from the Federal Government, they have made the island more and more reliant on the windfall in tax revenue that will come from spending on buildup construction. If this occurs, contractors will be forced to withdraw and develop business elsewhere but the Guam economy will suffer a further setback.

Concern is not just for construction contractors and other businesses that will benefit from a military buildup on our island. The buildup brings far reaching benefits including: •A sustainable boost to the Guam economy through greater economic activity •Good paying jobs for individuals in government and in the private sector •Improved quality of life for all residents – our youth need not move off-island •Greater opportunity to preserve Guam’s

The Government and Labor Relations Committee is open to all members of the association.

Contact the GCA office for time and place of meetings.

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COMMITTEEUPDATE

approached by a community organization, called Para Hita Todu (For all of us) to give voice to those of our community that have not been heard. Planning for the campaign is under way to include a petition drive in support of the Guam military buildup; Sponsorship of a professional survey of Guam residents to determine current attitudes regarding the buildup; Organizing a forum on Guam to elicit comment and ideas on how the buildup can make Guam better; Organizing a seminar in Washington, DC to express the community’s vision for how the buildup will help us all. The idea is to ensure that the U.S. Congress gets the message that the military buildup on Guam is in the nation’s interest and that the people of Guam are actively planning to utilize the buildup to build a better community and a stronger member of the American family. Most Guamanians remember that when the military was on Guam in the 1980s, in greater numbers than will exist at the height of the buildup, it was good for Guam and there were jobs, better education and we all got our tax refunds.

CONSTRUCTIONHEADLINE

Contractors

by: Kathleen Garrity ABC of Western Washington

must adapt or be left in the

The Great Recession permanently changed the rules of the construction game.

Everyone in construction agrees this recession isn’t like any we have experienced before, and the recovery is the slowest and most painful we have ever experienced. If the economic indicators are looking better, how come the construction industry isn’t improving?

Those who don’t understand that this Great Recession is a game changer may survive the recession, but they might not survive the recovery. Other recessions, basically hiccups, resulted in business as usual when the economy rebounded.

Not this time. Contractors who fail to make the necessary, game-changing modifications in how they do business will be left in the dust. Those who do will thrive. Nothing in the world, the economy or the construction industry is the same.

The global economy is not news. But the impact of the recent geopolitical instability in the oil-producing countries and the resultant increase of oil prices impact the entire world.

The lack of coherent U.S. energy policy governing oil, gas, coal, nuclear, wind and solar compounds the problem. The cost of energy impacts everything and its unpredictability makes related choices difficult.

With globalization comes the trend toward modularization of construction. Some thought, “Construction won’t be impacted; you will always have to build on site.”

You have to assemble on site, but panelization and modularization can be done in a manufacturing setting with more control over weather, quality and safety. And that can happen anywhere in the world. With advancing technology and techniques, large buildings and whole communities can become “plug and play.”

Government is another major factor. The degree of uncertainty in fiscal, monetary and tax policies makes it difficult for owner/developers and contractors to make

sound decisions. The deficit and printing of money weakens the U.S. dollar and increases commodity prices. The continued uncertainty also impacts the supply and use of credit to finance new projects.

about up-front agreements and mutually beneficial collaboration. Contractors must be prepared for IPD and its impact on the way owners and contractors work together.

The potential far-reaching impact of healthcare reform is another pall on economic development and construction. Too much uncertainty can lead to decision paralysis or at least increased costs to allow for unknown contingencies.

Technology will always be a factor. While not every project will employ building information modeling (BIM), there are many other technologies that contractors need to embrace to improve productivity and cost-effectiveness while meeting owners’ expectations. Contractors have learned to operate leaner and do more with less — often through the use of technology — and it’s clear that doing more with less is the new norm. Those who don’t will find themselves in the dust bin along with their outdated software.

The next game-changer is generational shifts impacting our workforce and markets. As employment rebounds, more Gen Yers are entering the workforce, at the same time many boomers are retiring. Gen Y is nothing like Gen X and contractors must figure out how to manage three very different generations while maintaining productivity and profitability.

Generations will impact not only who builds but who is built for. Futurist Andrew Zolli called it Diaper Demographics — we need to build educational facilities for the younger generation and health care and social services for the older generation. The preferences and needs of each distinct generation impact what is built and where.

Many industry trends will continue but with new twists. Green/sustainable building is an expectation, and the emphasis is on innovative strategies and solutions. Contractors who are not responsive to owners’ ever-increasing demands will be left in the dust of the green movement.

Risk management is now centering on integrated project delivery (IPD). While not every project will be able to achieve full-on IPD status with sophisticated legal contracts outlining the sharing of risk and reward, it is heartening to have the risk management discussion move away from how to push the risk down to the lowest sub to a discussion

In addition to owners expecting more in sustainability and technology, safety will continue to be a priority. Owners and contractors will look beyond just low EMR ratings to evaluating and requiring robust safety and loss-control programs. The safest contractors are the most cost-effective as a rule, and owners and their financial backers are paying attention. Contractors with high workers’ comp costs — off to the dust bin.

Another significant concern for contractors in the new marketplace is relationships.

Real-estate development to construction is a long food chain. Those who had forged strong relationships before the recession fared better than those who didn’t. Bankers, developers, generals, subs and suppliers all play a role in one another’s success. Putting an emphasis on building relationships will continue to pay off.

Contractors who have made the difficult choices and spent this “downtime” preparing themselves for new realities will find themselves well positioned to take advantage of opportunities in a changed environment.

Kathleen Garrity has served as president of Associated Builders and Contractors of Western Washington since the chapter was founded in 1983. She sits on the state Prevailing Wage Advisory Committee and served on the ad hoc committee that rewrote the state’s apprenticeship laws and rules for the Department of Labor & Industries and the Washington State Apprenticeship & Training Council.

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7” ½ x 4” 7/8.

GUAMSFUTURE

By Don Rochon Naval Facilities Engineering Command Pacific Public Affairs Office

Upcoming Projects Identified for Guam PEARL HARBOR – A signed Programmatic Agreement (PA) now paves the way for the Navy to proceed with construction projects on Guam in support of Marine Corps relocation efforts from Okinawa, thereby enhancing the readiness of U.S. joint forces in the Pacific theater and operational capabilities of the III Marine Expeditionary Force.

“The signing of the PA is an important milestone,” said Joseph Ludovici, director, Joint Guam Program Office. “We are looking forward to continuing to work with the people of Guam and the business community to deliver the requirements for the relocating Marines.”

Over $1 billion in funding provided by the U.S. and Government of Japan has been secured thus far for military construction projects. The Navy and Marine Corps remain committed to a deliberate approach of procurement actions and, per the Record of Decision, will apply Adaptive Program Management to adjust the pace and sequencing of construction projects to a sustainable level so as to not exceed Guam’s infrastructure capacities. As a result, contracts for the projects that have been funded thus far will be awarded throughout the year.

“We are pleased that the Navy can move forward with some of the initial work,” said Capt. Peter Lynch, Naval Facilities Engineering Command (NAVFAC) Marianas commanding officer. “These projects allow mission essential infrastructure for the Guam Realignment to proceed with a solid agreement to protect the valuable cultural resources on Guam and Tinian and stimulate economic growth in the region.”

NAVFAC Pacific Identifies Upcoming Projects This initial work is part of the design phase of the projects, where intrusive digging and boring work on project sites, which was put on hold until the PA

was signed, will now begin and help contractors determine the best designs to submit for their construction proposals.

“While design work for the projects is proceeding, construction is not expected to begin immediately,” said Capt Don Chandler, NAVFAC Pacific’s Guam program management officer.

“With the PA now signed, we can let our contractors know that they can complete the final phase of their design work. Once the designs are submitted and approved, the next step will be to tell them to go ahead with construction work.”

Seven projects have been identified for 2011. Contracts totaling more than $93 million for the first two projects were awarded in September 2010. Others for this year include the Andersen Air Force Base (AAFB) North Ramp parking and AAFB North Ramp utilities projects that are expected to be awarded next month, the Apra Harbor medical clinic project that is planned for award this Summer, the waterfront headquarters building project that is scheduled to be awarded in December, and phase one of the utilities and site improvement (U&SI) project.

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Three Task Orders Awarded for the Guam Military Build-up Effort air/vacuum valves, wastewater metering, lift stations, and standby power generation. Work is expected to be completed

by January 2013.

GUAM – Naval Facilities Engineering Command (NAVFAC) Marianas awarded three task orders today under previously awarded multiple award construction contracts in support of the Guam military build-up effort. Two of the task orders were awarded to small businesses.

A $73 million firm-fixed-price task order was awarded to Tutor Perini Corporation of Sylmar, Calif. under the Guam design build multiple award construction contract for construction of an aircraft parking apron at Andersen Air Force Base. Known as the North Ramp parking project, the work provides construction of an MV-22 aircraft concrete parking apron, hot mix asphalt apron replacement pavement, aircraft rinse facility, aircraft wash-rack facility, three direct fueling stations and a tow-way with retaining wall. Work is expected to be completed by July 2013.

A $9.1 million firm-fixed-price task order was awarded to Guam Pacific International LLC, a local small business of Barrigada, Gu. under a small business multiple award construction contract for construction of water and wastewater utility services in the North Ramp area of Andersen Air Force Base. Known as the North Ramp utilities project, the work to be performed provides potable water distribution system, gravity sewer collection, and sewer force main that extends service to the North Ramp area and connects to the existing gravity sewer system.

The system includes fire hydrants, valves, sewer manholes,

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A $5.3 million firm-fixed-price task order was awarded to Overland Corporation, a small business of Ardmore, Okla. under a design build multiple award construction contract for construction of a new communication duct bank at Andersen Air Force Base, Guam. The work to be performed provides a new communication duct bank with fiber-optic cable and telephone cable to replace the existing communication duct bank. Work is expected to be completed by April 2012.

“These projects at Andersen Air Force Base North Ramp provide necessary support for Marine Corps aviation operations,” said Joseph Ludovici, director, Joint Guam Program Office. “The award of these contracts demonstrates our commitment to partnering with small businesses to execute the military build-up and deliver capabilities required by the relocation of Marine Corps forces.”

be affected during Guam military buildup construction. The Navy has posted its assessment of impacts to historic properties associated with construction of the North Ramp parking and utilities projects on NAVFAC Pacific’s Cultural Resources Information (CRI) website at www.bit.ly/NAVFAC-GuamPA. Public comments on the assessment of these projects will be accepted through May 14, 2011.

“Our team has been working diligently to award these projects, which allow us to continue moving forward on the Guam military build-up effort,” said Capt. Peter Lynch, commanding officer of NAVFAC Marianas. “The PA facilitates a smooth process that protects historic properties on Guam and the Commonwealth of the Northern Marianas Islands (CNMI) and allows design work to proceed simultaneously. Construction will not begin until we have completed the processes outlined in the PA.”

– USN –

Task Orders Awarded In accordance with the Programmatic Agreement (PA), the public has an opportunity to provide comments on the identification and evaluation of historic properties that may

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GUAMSFUTURE

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

FEATURESTORY

Islandwide

Job Fair aS u c c e s s by: Gennette Quan Simmons

The highly anticipated Department of Labor (DOL)/ Guam Contractors Association (GCA) Job Fair held on May 6 at the University of Guam (UOG) Field House in Mangilao drew a crowd of over 4,000 job seekers and 70 businesses, according to James Martinez, president of the Guam Contractors Association. “Lieutenant Governor Ray Tenorio gave the welcoming remarks to a horde of people who were lined up outside the Field House and around the building,” Martinez said.

Employers present were primarily GCA associates and contractors but also included members of the hotel, restaurant, and government sectors.

The Guam Department of Labor (DOL) and GCA co-hosted the event with the objective of “getting employers and job

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seekers to meet face-to-face and hopefully create a job relationship,” Martinez said. But more than simply meeting that objective was GCA’s “desire for contractors working on Guam to hire locals before hiring foreign workers,” Martinez added.

The success of the event comes on the heels of much criticism towards GCA contractors for allegedly not hiring an adequate number of candidates from the pool of local applicants. “In the construction industry safety and knowledge of the job is important. The need to hire highly trained and skilled people is very important. But there are those job seekers who may be either under-skilled or not skilled. In these situations our goal is to select those folks who fall in the appropriate job categories and train

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them by promoting our on-island education avenues like GCA trades, Guam Community College, and UOG,” Martinez said.

In addition to offering face-to-face time with company representatives, on-thespot and informational interviews, the job fair provided job seekers training and development resources. “GCA Trades Academy, UOG, and GCC were partnered at the job fair to offer training and workforce development to train the unskilled to become skilled. Keep in mind that the construction industry is not alone in their need for trained employees. The hotel, restaurant, and cosmetology industries are also in need,” Martinez said.

The job fair was one of many efforts designed to afford local residents - who

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FEATURESTORY

are skilled in their respective professions - first dibs at employment opportunities before affording these same positions to off-island applicants. Governor Eddie Baza Calvo stated the significance of such efforts. “It’s important to us that we do everything possible to bring career opportunities to all Guamanians looking for work,” Calvo said. “The Department of Labor’s partnerships with the private sector, is critical and proactive.”

Leah Beth Naholowaa, director for the Department of Labor, also expressed her enthusiasm about the job fair. “We’re very excited to bring these companies together for everyone out there looking for a job. This is just one of the many projects we are working on to advance the governor’s workforce development agenda.”

Employers also availed huge benefits from this event. They were afforded the advantage of interacting with a wide variety of candidates from one conve-

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nient location. And for some, the event far exceeded their expectations.

“We didn’t expect the turn-out of applicants as anticipated. We came there with 250 blank applications thinking we had more than enough, however by 11 a.m. we had to run back to the office for more job applications,” Joe Roberto, president of North Island Tinting, said.

Roberto considered the event a success.

“With five positions available for the new East Island Tinting and brand new complete auto detailing operations, we were overwhelmed with people wanting a job. The job fair was a huge success for us as we have literally hundreds of applications to fill our positions. This allows us to choose the best of the best to service our current and future customers,” Roberto said. dck pacific guam, LLC, a major construction company doing sizable amounts of

building projects on Guam took advantage of the opportunity to meet with local job seekers. “Through the islandwide job fair, dck pacific guam, LLC received numerous qualified candidates and definitely feel that it was a success.

One of the advantages is the opportunity to screen potential candidates on the spot through casual conversations. By having casual conversations you are able to get a better idea of not only the candidate’s experiences and qualifications, but also their potential. Just as important as experience and education/training is the search for someone who’s driven and motivated.

The job fair also benefits the individual because it provides an opportunity to ask the employer questions and gain better insight of the company and position of interest,” Douangchan (DL) Lasrithammavan, human resources administrator for dck pacific guam, LLC, said.

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FEATURESTORY by: Jac Perry Guzman Bonarrigo Investment Group Inc., dba The B.I.G. Shop has been in business on Guam since 1992. Anthony Bonarrigo, President, explained that the company has been busy with several projects throughout the years and most recently finished work at the Layon Landfill.

“We have just completed the cabinets for the Layon Land fill, partnering with Black construction,” Bonarrigo said. “We have also completed a number of small projects for the Navy and Air force over the last few months.”

An important project The B.I.G. Shop is working on is work for the John F. Kennedy (JFK) High School. “We are manufacturing close to three thousand feet of cabinets, storage units, chemistry and physics lab work stations, a complete library, new stacks and reception area,” Bonarrigo added.

The B.I.G. Shop is also working on a few custom kitchens, a new executive office for Jere Johnson, President Hawaiian Rock Products and a number of federal projects starting up towards the end of the summer. “We are partnering with DCK and Reliable Builders,” Bonarrigo said.

The company is keeping busy and partnering with several large corporations to complete projects for Guam’s military buildup. “We currently have close to $2 million in pending proposals, 85% of these proposals are for federal projects associated with the military buildup,” he said.

The B.I.G. Shop is proud of its team that provides services for its clients. “Our

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team consists of 100% local hires; we have a very mixed work force. Two ladies from Yap, two from Pohnpei, four men from Chuuk, and three local shop leaders. With the exception of the three shop leaders, all of our employees have come from the Center for Micronesian Empowerment. The have all out performed our expectations and proved to be very valuable, productive employees,” Bonarrigo said.

An important method developed by Bonarrigo was to develop a training program for the employees at The B.I.G. Shop. “We changed our operation, and production lines to accommodate an untrained work force. Being that this is repetitious, machine tool operation, we developed a training program that address’s the short comings of an unskilled work force. The average daily output is between 100 and 125 sheets of material cut in an 8 hour shift. The same sheets are ripped on the table saw, edge banded, crosscut, drilled, and stacked ready for assembly. Our current daily output of finished cabinets exceeds 75 completed units. This is equal to or better than any mainland production facility, and unmatched by any of our local competitors,” he stated.

“We have recently joined the GCA, and I have worked with Trades Academy since the beginning. We have been partnering with the Trades on a number of projects, even teaching the CORE curriculum, Carpentry, Safety, and some Electrical classes,” Bonarrigo said.

It wasn’t easy to get The B.I.G. Shop to its successful stage, Bonarrigo explained, “Over the last two years, like most small

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FEATURESTORY

business on island we have struggled to keep our operation going. They were some very lean times, I had to get “Real job”, just to make ends meet and work nights and weekends to keep the shop open. Two of my competitors have also closed last year, so times were tough all around. Since the record of decision was signed, it’s like the gates all of the sudden opened up and all this work is falling into our hands. I knew if we could hold out, things would turn around for my company. I have to thank my suppliers, vendors and creditors for believing in me and giving us a chance to fulfill our obligations with all this new work.”

“This new work has also allowed our company to expand, purchase and set up new production line equipment, improve and upgrade our electrical systems,” he added.

Some of the new equipment has proven fantastic for output at The B.I.G. Shop. “I am really proud of our new CNC Router; this machine is state of art in cabinet production, dovetailed with the new screen to machine software. All of the

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designs on created on the computer, and then fed to the machine. This machine can fabricate cabinet parts, doors, dovetail drawers, counter tops, and do three dimensional carving,” he explained.

“We intend to start entry door production before the end of this summer. The new software is the latest in computerized manufacturing; all of the work can be handled by one man. I can even take a digital photo of a person, animal, storyboard, and carving and duplicate it in 3D. It’s really state of the art in manufacturing; we can now cut metal, plastic, foam or any type of material. Best part of all this is the savings on labor and materials, it’s becoming a one man operation,” he added.

Bonarrigo is in for a bright future with more projects coming to his company.

“All I see is positive aspects of the buildup for our small family business, work is coming in, proposals are getting very positive responses, and our future in the manufacturing business is very bright,” he said.

“We will be expanding our operations this year to include a CNC machine shop.

Not just a typical job shop where we rely on walk-in customers. This will be a new operation based on a clean room environment. Mainstay of our new operation will be the CNC machine tools we are bringing in, Dynamic balancing machine, and hydraulic test stands that will allow our company to focus on very detailed and meticulous repairs.

Coupled with our welding facility, specializing in aluminum and stainless steel fabrication. We will be seeking out work in the upcoming water/waste water system upgrades, this is a very specialized manufacturing process, and we will be the only company on island with the facility, engineering, and certified DOL machinist, welders and machinery mechanics to accomplish the task,” Bonarrigo said.

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MAY2011 | 21

PHOTOHIGHLIGHTS

April Luncheon

April 20th,2011 Sheraton Laguna Guam Resort

The all new GCA Trades Academy electrical test laboratory is a state of the art, one of a kind laboratory in the Micronesia area.

Electrical students learn through the combination of classroom and hands on instruction. Special thanks to Budazu Electric, GCC, GCA and everyone who was involved in making the creation of this lab possible!

Obayashi Guam Office Open House May 9th, 2011

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CONSTRUCTION NEWS BULLETIN

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Last month’s Garrison Report discussed effective leadership. If you didn’t listen to it or read it, then I suggest you go back and review it at www.jackstreet.com/jackstreet/WCON.GRMa rch2011.cfm because the recommendations in this issue are consistent with effective leadership. Using the following techniques will improve your leadership effectiveness and allow you to deliver a lot more value to your organization.

Have a list of people to whom you can delegate certain issues.

We all have challenges, opportunities, problems or important tasks that need to be addressed. Unfortunately it is usually very difficult to do everything yourself. Just like the manager who brings in the lefty from the bullpen to face the left-handed slugger in the ninth inning, you need to know which of your people is ideal for certain situations. In other words, you need to be able to place the right person in the right position when an issue comes up. Only by tracking the performance of your people in various situations will you know the best person to assign to the case.

Write it down because it’s hard to remember everyone’s performance in all situations. Keep in mind that your best overall person may not be the person in a particular situation; you might need a specialist. Also, just like a manager with a 10-run lead in the ninth doesn’t bring in his best pitcher to close out the game, if a situation isn’t that critical, you can move down the bench a little. This will give someone a chance to develop and grow.

If you don’t give them opportunities when the pressure isn’t very high, they will never learn, which will have long-term negative impact on your organization.

Shorten meeting times by half.

The person you are assigning a task is qualified, in essence, an expert on the situation. After all, if the worker isn’t qualified, why are you assigning the task to that individual? That person understands the situation, can process the information and will apply it and if necessary change to achieve the desired results. Most meetings spend too much time going over the details that qualified people know and understand.

Let the expert do his job. Instead focus on what’s most important. Make sure the delegate understands the deliverables and

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how they will be measured. Identify any critical issues or limits the situation has. But don’t get bogged down in the how-to details.

This frustrates the expert because you come across as talking down to them. Besides, if she is the expert, she probably understands what needs to be done better than you. This simple suggestion will increase the productivity of both the delegator and delegate.

Improve your systems.

Much of the work performed by organizations is routine. Assigning such routine tasks to someone highly qualified who could be doing something more valuable and complex is very unproductive. The solution is systems.

Developing systems that less-qualified people can follow improves the organization’s performance and allows you to delegate many more tasks without having to spend all your time supervising the individuals performing them. The workers simply need to be taught the system then allowed to follow the system’s procedures. The worker no longer has to make decisions; instead the worker simply follows the process. However, educate your people that when variations in the process occur, they should ask for help, not simply respond, “We can’t do that.” As variations occur, you can always add modifications to the system for those situations. The system should be an active process, changing with conditions and not set in concrete. The workers should also be encouraged to make recommendations on how to improve the system. This is important because the people performing the work after a while become the experts on the system and often see ways to improve it that those not immersed in it don’t see.

Respond to problems more forcefully.

Too often people respond to a problem or crisis with the minimum they believe will solve the problem. This is a situation where business could learn from the military. When any general must go in to battle, he attempts to use overwhelming force. In any crisis, the situation is no different. Use overwhelming force to crush the problem. A perfect example is Japan’s nuclear plant problems resulting from the earthquake and tsunami. Of course, the Japanese had their hands full due to the overall impact of everything that happened.

But they could have asked for help immediately. It’s dangerous to “think” we have things

under control. As soon as they lost power, which they knew could cause problems, they should have considered the worst possible scenario and responded accordingly then done everything possible to deal with that situation immediately. It took a week to get the emergency generators there to start operating some pumps. If they had asked the world community for generators immediately, the world would have provided them in 24 to 48 hours and many of the eventual problems could have been averted. In essence, this is about getting ahead of the crisis instead of trying to keep up with crisis.

In the end the overwhelming-effort approach is less costly and more productive because it minimizes the problem, instead of attempting to control the problem.

Keep your word.

How does keeping your word improve your efficiency? If you promise only what you can deliver, you don’t have to waste time on stuff you can’t do or spend time trying to justify why you didn’t do it. That doesn’t mean you don’t stretch. You can say, “I guarantee that I will have this done by the end of the month. I will try to have it to you sooner, but I can’t guarantee that because there are variables I don’t control.”

We all are under tremendous pressure today to be more efficient. These five suggestions will help you do just that while making you a more effective leader.

"Ted Garrison, president of Garrison Associates, is a catalyst for change. As a consultant, author and speaker he provides breakthrough strategies for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances and marketing. Contact Ted at 800-861-0874 or Growing@TedGarrison.com.

Further information can be found at www.TedGarrison.com."

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MAY2011 | 27

GARRISONREPORT

Effective Leadership Can Make the Difference

by: Ted Garrison

SMALLBUSINESS

TRAININGS/SEMINARS

REMINDER!

Developing a Capabilities Statement A capabilities statement is probably one of the most important marketing tools that you can use to promote your business in the federal/local market place. Join us in this workshop as we help you to develop a great marketing tool.

UOG-School of Business & Public Administration Bldg. Room 129 May 19, 2001, 9:00 a.m. – 11:00 a.m.

Presented By: Boris Hertslet, Procurement Counselor Register now with the Guam Procurement Technical Assistance Center (PTAC).

Visit www.guamptac.com or call 735-2552.

The Guam SBDC is one of six SBDC’s serving the Micronesian region, collectively known as the Pacific Islands Small Business Development Center Network (PISBDCN). We offer free, confidential, one-to-one counseling in all areas of business management, including pre-venture feasibility, business planning, marketing, and financial management. We also offer small business training programs. Upcoming training workshops are: • May 19, 2011 “How to Handle Customer Complaint & Gain Customer’s Trust” • May 26, 2011 “Women In Business Workshop: Researching & Analyzing the Market” • May 27, 2011 “How to Prepare a Financial Plan" • June 1, 2011 “Introduction to Microcredit” • June 3, 2011 “Guerrilla Marketing” • June 9, 2011 “How to Deal with Customer’s Verbal Abuse & Hostility” • June 16, 2011 “How to Apply Work Ethics to Protect Your Business” • June 17, 2011 “How to Prepare a Marketing Plan To register, call the Guam SBDC at 735-2590 or email Laurine Sablan at laurine@pacificsbdc.com Requests for reasonable accommodations for persons with disabilities must be made 72 hours in advance. For arrangements, please call Guam SBDC at 735-2590. Services are extended to the public on a non-discriminatory basis. For more information, please visit www.pacificsbdc.com (click on workshops/calendar) or call 735-2590.

SAVE THE DATE! GCA Small Business Committee, SBDC and PTAC Small Business Outreach Conference

June 2 - 3, 2011 Guest Speaker Brian Darst, Attorney at Law, Washington DC Topics to include: JV/Mentor Protege New SBA Rules, Subcontracting, Changes & Claims in Government Contracting

SAVE THE DATE! 16th Annual GCA Island Wide Safety Conference May 25 - May 27, 2011 8:00am - 5:00pm Holiday Resort, Tumon $50 for a full day of topics (includes lunch)

SAFETY FOR SMALL BUSINESS This is a primer on the importance of safety for small business entities.

Topics include Introduction to OSHA, Where is Safety in Your Company, Accident Investigation for Small Business, Recordkeeping 101 To register, contact GCA at 647-4840 for additional information along with other courses available.

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AROUNDTHEBENCH

by: Richard Mesa Grainger International -Asia Pacific

Understanding the NFPA 70E Electrical Safety Code Both the Occupational Safety and Health Administration (OSHA) and the National Fire Protection Association (NFPA) have written standards and regulations that build on one another and help keep all workers safer from electrical hazards in the workplace. In this case, the OSHA regulations and NFPA standards work so well together it’s been said that OSHA provides the "shall" while NFPA provides the "how".

In 2009, the NFPA published a major update to its electrical safety codes. They called it NFPA 70E. The standard covers the full range of electrical safety issues, including safety-related work practices, maintenance, special equipment requirements and installation.

OSHA bases its electrical safety standards (found in Subpart S part 1910 and Subpart K part 1926) on the comprehensive information found in NFPA 70E. It focuses on protecting people and identifies requirements that are considered necessary to provide a workplace that is free of electrical hazards.

Here's an example of how clearly the OSHA regulations and NFPA 70E standards work together. OSHA mandates that all services to electrical equipment be done in a de-energized state. "Working live" can only be done under special circumstances. NFPA 70E defines those special circumstances and sets rigid safety limits on voltage exposures, work zone boundary requirements and PPE necessary. (See NFPA 70E Article 130 and OSHA Subpart S part 1910333(a)(1) for complete details).

Regulation Changes In 2009, the National Fire Protection Association (NFPA) created the 70E Standard for Electrical Safety in the Workplace based on the NFPA 70 (NEC) Code

30 | MAY2011

first published in 2004. There are significant differences between the two documents.

The original NEC Code was written primarily for those who design, install and inspect electrical installations (electricians by trade). Its technical content, complexity and scope are specific to the needs of that group and include provisions that have nothing to do with employee safety. OSHA’s responsibility, on the other hand, is to ensure its regulations on Electrical Safety pertain to employers/employees across industry lines.

The NFPA 70E was created to fulfill OSHA requirements while remaining consistent with original NEC Code. It is drawn largely from the original code, but also from other documents to make it more understandable and usable across the board.

•Added Annexes M, N and O (All NonMandatory) -Annex M: Layering of Protective Clothing and Total System Arc Rating -Annex N: Example Industrial Proce dures and Policies for Working NearOverhead Electrical Lines and Equipment -Annex O: Safety-Related Design Requirements

Sources for More Information NFPA 70E Standard for Electrical Safety Requirements for Employee Workplaces, National Fire Protection Association, 1-617-770-3000.

ASTM F1506 Standard, American Society for Testing Materials, 1-610-832-9585.

Duke Power Flux Calculator. Available at Oberon: www.arcflash.com

Here are highlights of changes from the 2004 NEC Code to the 2009 NFPA 70E Standard: • Updated to correlate with the latest NEC code – 2008 • Chapter 4: Installation Safety Requirements was removed entirely because it was a duplicate of the NEC installation requirements.

Since the NEC and NFPA 70E are on different revision cycles there was always the risk that the contents of Chapter 4 were not up to date with the NEC. • Article 350 was added for R&D facilities • Significant revisions to Annex D, E, F, and J - Annex D: Sample Calculation of Flash Protection Boundary - Annex E: Electrical Safety Program - Annex F: Hazard/risk Evaluation Procedure - Annex J: Energized Electrical Work Permit

CONSTRUCTION NEWS BULLETIN

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CRANECRITIQUECORNER

THE RIGHT

by: Dave Barnhouse

CRANE JOB

This month’s topic:

FOR THE

A monthly crane and rigging informative column for all personnel directly or indirectly involved with crane safety. Each month we will attempt to explain a different technical issue pertaining to crane operations here on Guam, addressing the sometimes overlooked or misunderstood topics by management and operators alike, by Dave Barnhouse More than once I have been asked to schedule a specific capacity crane for a job, a 15 ton capacity for example. When asked what the load weighs, it’s as if though I just asked the most igno-rant question ever, ‘its 15 tons, that’s why I want a 15 ton crane’. There are many variables involved in calculating capacity of crane for any specific lift. If you have never sat in the seat of a crane let me advise you it is nearly im-possible to make a full capacity lift with a mobile crane. You also may not be aware what it takes to upset a crane. Let’s use a 250 ton

crawler crane as an example. Configured with a maximum boom length it may very well upset with nothing on the hook. The boom itself is enough load to overload the crane if operated at below minimum boom angle as per the load charts.

Some things to consider before or-dering a crane for a specific lift: Information about the load. Get as much as possible. Weight and dimensions of a load are key information.

Perhaps the exact data is not available to

you, in which case a description will assist the crane hire company to cor-rectly assess the situation. The job you are doing may be similar to crane op-erations they have done for others.

The make and model of a piece of machin-ery to be lifted for example may pro-vide the essential information the crane dispatcher requires to determine the weight and dimensions.

How close can the crane get to the load that is to be lifted? Lifting ca-pacity of a crane is determined by the reach of the boom, both the length ex-tended and the distance to the load is from the center of rotation. It's important therefore to know how far the crane will have to reach and how high in order to place the load in the desired location.

Identify any obstacles the crane has to work around in order to complete the lift. Power lines, trees or buildings etc. could all impact the operation of the crane. You may need to explain to the crane dispatcher what obstacles exist that may affect the crane's ability to perform the lifts required.

Check the access to the set up position. Narrow driveways and tight cor-ners may require a four wheel steer crane. Parking may be needed for a support vehicle bringing additional equipment if required. Discuss any limitations on access etc. with the crane

This month’s test quiz addresses Personnel:

Besides crane signals, what information is the signal person required to know?

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CRANECRITIQUECORNER

Answers to last month’s test quiz: Personnel Besides crane signals, what information is the signal person required to know?

Answer: The crane signal person is responsible for much more than signaling the operator. Briefly, responsibilities in-clude: Basic knowledge of crane operations, 1. Know basic crane terminology and definitions.

2. Understand the effect of size, shape, weight, and cen-ter of gravity of load being lifted.

3. Understand boom deflection and how to compensate for it.

4. Know the effect a moving load has on a crane.

dispatcher.

Check the suitability of the ground conditions. Confirm that the ground area is big enough and can support the weight of the crane moving into position and when working. Identify potential trouble spots such as underground water mains or drains. Access for the crane may need to be improved to avoid getting the crane stuck when moving onto or off the site. Cranes can be set up on sloping ground but they have to leveled before lifting. The crane operator may need to bring additional materials and equipment to enable the crane to be leveled. Also, as per the new OSHA standard 1926.1402 the prime contractor or controlling entity must ensure that ground preparations meet the requirements for adequate support and degree of level are met and inform the equipment user & operator of known underground hazards (voids, utilities, etc.). This new ruling shifts ground support responsibility from crane owner to crane renter.

Consider the need for specific lifting equipment. Discuss your needs with the dispatcher. Special lifting equip-ment is available to lift loads of all types and the correct attachment of suitable lifting equipment to the load will avoid damage such as spreader bars or synthetic slings.

Also, if the load will be required to be

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5. Understand that boom length, angle, and load weight may affect boom deflection.

6. Know the importance of keeping the hoist line vertical when a load is applied.

7. Understand what causes drift and how to compensate for it.

8. Know the effects of side loading.

9. Know the causes and consequences of two blocking.

10. Know the importance of keeping personnel from the load path.

11. Understand that when applying load to crane that center of gravity needs to be below the boom tip.

12. Hand Signals.

13. Voice Communications.

14. Situational awareness (site-specific considerations) controlled with tag lines, do not assume your per-sonnel will be qualified to perform this task. If tag line personnel are guiding the load than they must be trained and qualified to do so. .

Consider requesting a site visit by a crane company representative. Crane operation companies are keen to meet their customers expectation and maintain safety. A site visit by their representative may be appropriate and the best way to ensure the correct crane and rigging are used.

We will discuss the answers to these questions in next month’s edition of GCA Construction News Bulletin, please be sure not to miss it.

I will attempt to test your knowledge of crane operations each month in this column with a few questions relating to one of the mentioned topics. These questions will address the weak areas more frequently noted during my classroom operator training and/or the more common discrepancies noted during crane inspections. If your company or subs utilizes cranes whether as owner or renter I invite you to look for this column each month and test your crane knowledge.

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 Yigo 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 and practical examiner for all types of mobile cranes and the only OSHA accredited crane inspector on Guam.

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MAY2011 | 33

MAY 2011

Electrical Instrumentation Control Services P.O. Box 4918 Hagatna, GU 96932 GCA Contact: Joel Ollet Email: eicsguam@yahoo.com Ph: 649-7218 Fax: 649-7217 Description: Insulation, Service, maintenance, Troubleshoot

Description: Plumbing Wholesale Distributors, HVAC, Waterworks, Industrial Manpower Guam, Inc. GCIC Bldg. A-9 404 W. Soledad Ave. Hagatna, GU 96910 GCA Contact: Roderick Boss Email: mp.guam@manpower.com Ph: 479-2677 Description: General Staffing Okinawa Kensetsu Shinbun 3-5-6 Tomari Naha Okinawa, Japan 900-0012 GCA Contact: Hikaru Oshiro Email: hikaruoh@oki-ken.com Ph: 098-867-1290 Fax: 098-867-1295 Description: Media

Associate: Engineering Resources International 1128 N. Marine Corps Drive #104 Tamuning, GU 96913 GCA Contact: Patrick Mizuta Email: eri@guam.net Ph: 687-4718 Description: Electrical Engineering Consulting Services

MAR Incorporated 1803 Research Boulevard Suite 204 Rockville, MD 20850 GCA Contact: Robert Harper Email: rharper@marinc.com Ph: (301) 231-0100 / (321) 454-4935 Fax: (240) 453-9871 Description: Engineering, Construction Manager

Ferguson Enterprises P.O. Box 5039 Hagatna, GU 96932 GCA Contact: Jackie Calvo Email: eaguam@ea-engineers.net Ph: 988-5879

World Transman International Placement, Inc. 2208 Antel Global Corporate Center Julia Vargas Ave. Pasig City, Philippines GCA Contact: Reno G. Lim Email: rlim@renolim.com

Ph: 632-687-9071 Fax: 632-687-9072 Description: Manpower Placement / Suppy Allied: NW Local Contractors 10550 SW McDonald #101 Tigard, OR 97224 GCA Contact: Teo Johnson Email: teoj@nwlocalcontractors.com Ph: (971)645-4292 Fax: (503)649-0880 Description: EPA Training – Safety Training Cancelled Members: Guam Psychiatric Services, LLC

NEWMEMBERS

Contractor: Bonarrigo Investment Group, Inc. 11 Ladera Circle Piti, GU 96915 GCA Contact: Anthony Bonarrigo, Email: thebigshop1@gmail.com Ph: 646-5040 Fax: 477-7618 Description: Manufacturing, Wood, Plastic, Metal