Issuu on Google+

Guam Contractors’ Association

CONSTRUCTION NEWS BULLETIN

Vol.51 Issue 06 JUNE2010

THE

ALPHABET SOUP of LABOR LAWS

Feature Stories: Human Resources on Hiring Practices G4S: Global Service CompanyCommitted to Growth on Guam


CONTENTS CONTENTS

4

8

P resident’s Message C ommitte Update:

11

C onstruction Headline:

14 18

C rane Critque Corner F eature Story:

20

F eature Story:

24

P hoto Highlights S mall Business Member Benefits O n Guard G arrison Report N ew Members

28 31 33 34 36

S.A.M.E.

Big MACC

JUNE 2010

18

Feature Story

Grace Donaldson G4S

20

Feature Story

In last month's issue (May issue) small business page was titled SBA & GCA. It should've read: GCA & Guam Chamber Small Business Committees.

2 | JUNE2010

CONSTRUCTION NEWS BULLETIN

www.guamcontractors.org


PRESIDENT’SMESSAGE PRESIDENT’SMESSAGE

Hafa Adai! GCA Members: I just returned from a trip to San Diego a couple weeks ago to attend the Hita I Marianas Conference “America’s Future in Asia”. It was a Guam Industry Forum-type conference held there. I had the pleasure of meeting several contractors and suppliers who have never been to Guam but have heard of the opportunities in the military construction sector here. I was a speaker at this conference and presented what the GCA is doing for its members and the industry in general. When I arrived back home, I was inundated with emails from the contacts I made back there saying they are making a trip to Guam this summer. I would like to thank Bob Salas of Landscape Management Systems Inc. and Sarah Tiglio of Hydro-Scape Products for helping offset some of the cost to get there through their sponsorship and also to Joey Leon Guerrero of Able Industries for helping to man the GCA booth at the conference. I guess the goal of the conference was to encourage local residents who have left Guam over the years, to come back and avail themselves of these opportunities. I did have the unexpected pleasure of meeting an old schoolmate of mine whom I haven’t seen since junior high school, I think it’s now called middle school these days, but it’s been a very long time since we last met. His name is Albert Yanger; if the name sounds familiar he is the brother of former GCA Board member Ray Yanger of Matson Navigation. Albert has his eyes set on returning to Guam sometime this year. I also met with a cousin of mine whom I also haven’t seen in years. He was the former general manager of the Guam Visitors Bureau, Joey Cepeda. Although this conference was held several thousand miles away, it just goes to show just how small the world is really is. By the way, the weather there was just the way I like it….outside air conditioning! The GCA Small Business Committee in collaboration with the Procurement Technical Assistance Center (PTAC) is holding a DoD Small Business Outreach Forum on Wednesday, July 7, 2010 at the Hyatt Regency Guam. This committee has come a long way in just a short period of time since its establishment. Under the leadership of its chair and co-chair, Joe Roberto (North and East Island Tinting) and Nora Santos (Allied Pacific 4 | JUNE2010

Builders) and the dedicated members of the committee, they were able to coordinate, plan and execute what will be a very important event for our small business community. There are and will be numerous opportunities in this military buildup for small businesses and the GCA Small Business Committee wants to ensure that the flow of information reaches our local small businesses. I want to also encourage our larger contractor members to attend this event and meet with some of our local small businesses. You’ll be surprised with some of the capabilities these businesses have to offer. For more information on this event, please call the GCA office at 647-4840 or email me at gca@teleguam.net . The GCA Trades Academy will soon be launching an assessment program thanks to a federal earmark grant they received at the recommendation of Congresswoman Madeleine Z. Bordallo. The program will assess our current workforce who have been employed for four or more years but have no certifiable credentials for their trade. What it does is tests the knowledge and skill of this class of workers against the journeyman-level skills in the same trade. There is a written test as well as a performance test that is taken to determine if this worker has the necessary knowledge and skill of a journeyman-level worker. If they pass the written and performance tests, then this worker will receive a certificate through the National Center of Construction Education and Research (NCCER). We are also working on articulation with the US Department of Labor Bureau of Apprenticeship Training to recognize this assessment for a USDOL Journeyman Certificate. Kudos to Bert Johnston DBA and the hard working staff at GCATA for the wonderful work they do in providing a world-class training programming for the construction industry. For more information on this assessment program, please call GCATA at 647-4842 or email them at gcatrades@guam.net . Senseramente, James A. Martinez

ONSTRUCTION NEWS BULLETIN

www.guamcontractors.org


THETEAM

THEDIRECTORS PRESIDENT James A. Martinez, GCA CHAIRMAN Chit Bathan, Ace Builders LLC VICE CHAIRWOMAN Bill Beery, Construction Management Services PAST CHAIRMAN Tom Perez, Perez Bro., Inc. SECRETARY/TREASURER Robert Salas, Landscaping Management Services ASSOCIATE DIRECTORS: Edward Untalan, First Hawaiian Bank Michelle Quidachay, Horizon Lines Adam Baron, Cassidy's Associate Insurers (Alternate) CONTRACTORS DIRECTORS: Tom Perez, Perez Bros. Inc Tom Nielsen, Maeda Pacific Corporation Joshua Tenorio, Core Tech International Ana Lisa Reed, L.A. Painting & Construc tion Co. Armando Acosta, Orion Construction Corporation Guam Narci Dimoala, Amazon Construction Ron Young, Parker Bros

6 | JUNEL2010

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 Ann Marie Pelobello, Office Manager, 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 CREATIVE DIRECTOR: Christopher Estioca GRAPHIC ARTIST: Geri Leon Guerrero Christopher “Taco” Rowland PHOTOGRAPHERS: Christopher “Taco” Rowland Marc Mendiola EDITOR: Adztech CONTRIBUTING WRITERS: Jac Perry - Guzman John Robertson Ted Garrison Grace Donaldson Rynette DeCastro Patrick Sanchez II Adam Baron Joshua Tenorio Dave Barnhouse GCA STAFF: Ann Marie Pelobello Chantel Torres-Cruz Francine Arceo COVER: Grace Donaldson in Studio

www.guamcontractors.org


COMMITTEEUPDATE By John M Robertson

Military Construction Projects to be Awarded in Guam in FY 2011 Guest speakers at the June meeting of SAME Guam Post were CAPT Peter Lynch, Commanding Officer for NAVFAC Marianas and LtCol Richard Mathews, Commanding Officer for the 36th Civil Engineering Squadron. They provided, among other things, an overview of the military construction projects awarded and to be awarded in Guam for FY 2010 and projects included in the President’s budget for FY 2011 that is now before the Congress. In the past, the typical volume of construction awards has been approximately $500 million. In FY 2010 and beyond, the volume of business to be awarded is projected to exceed $1 billion/annum. NAVFAC is hiring additional personnel to manage the increased volume. There are currently over 700 positions authorized with only 500 filled. NAVFAC is mindful of the impact on local businesses from their hiring on island and are to the extent possible borrowing personnel from other districts on the mainland. They also intend to award two Construction Management contracts in order to obtain additional personnel for the duration of the buildup

INSTALLATION

ANDERSEN AFB ANDERSEN AFB ANDERSEN AFB ANDERSEN AFB GUANG BARRIGADA DEFENSE ENERGY SUPPORT CENTER NAVBASE GUAM NAVBASE GUAM NAVBASE GUAM NAVHOSP GUAM INSTALLATION

NAVBASE GUAM NAVBASE GUAM GUAM ROADS ANDERSEN AFB ANDERSEN AFB VARIOUS

FY 2011 Operations & Maintenance, Navy (O&M) Opportunities Joint Region Marianas will receive $164 million in Sustainment, Restoration & Modernization (SRM) dollars in FY 2011. Of this amount, $68 million is the target SRM allocation for Naval Base Guam and $96 million for Andersen Air Force Base. These amounts exceed prior year allocations and some of these projects will be managed by NAVFAC rather than the BOS Contractor. Joint Region Marianas will also receive $116 million in Base Operating Support (BOS) dollars in FY 2011. Of this amount, $60 million is the target BOS allocation for Naval Base Guam and $56 million for Andersen Air Force Base. Unrestricted

Construction Contracting Tools The Guam MACC (U.S. funded) contract

TITLE Strike/FOL Electrical Infrastructure Awarded to DCK-ECC Pacific Guam Construction LLC Northwest Field ATFP Perimeter Fence and Road Awarded to Serrano Construction & Development Corporation Commando Warrior Operations Facility Awarded to Fargo Pacific Northwest Field Combat Support Vehicle Maintenance Facility Awarded to Guam Pacific International LLC Readiness Center Awarded to DCK Pacific Guam LLC Replace Gas Cylinder Storage Facility Awarded to Tumon Corp. Replace North Tipalao Housing, Phase III Project on Hold Torpedo Exercise Support Building Awarded DCK-eccJV Consolidated Submarine Learning Center and Submarine Squadron FIFTEEN Headquarters Awarded DCK-ecc JV Hospital Replacement, Phase 1 Solicitation underway TITLE MILITARY WORKING DOG RELOCATION Solicitation pending APRA HARBOR WHARVES IMPROVEMENTS Solicitation pending DEFENSE ACCESS ROAD IMPROVEMENTS Solicitation pending NORTH RAMP UTILITIES, PHASE I Solicitation pending NORTH RAMP PARKING, PHASE I Solicitation pending UTILITIES AND SITE IMPROVEMENTS - Finegayan Sitework and Utilities - Andersen AFB North Ramp Gate - Apra Harbor Wharves Utilities Solicitation underway

$x1,000 33,750 4,752 4,200 15,500 30,000 4,900 20,730 15,627 45,309 259,156 $x1,000 27,070 167,033 48,860 21,500 88,797 320,860

The Government of Japan has agreed to the use of a Mamizu MACC for vertical construction projects. Contracts details are still being worked out. In the meantime, stand-alone solicitations for Utilities and Site Improvements for Phases 1 and 2 will proceed.

Small Business Contracting Tools (for US Funded Projects) The Small Business MACC contract capacity price of $500 million was awarded in April 2010 to six firms. The HUBZONE MACC contract capacity price of $400 million was awarded in July 2009 to nine firms. The 8(a) MACC contract capacity is a firm-fixed price of $100 million over a period of five years (base plus four options). The typical task order range is $1 million to $15 million with a minimum guarantee of $25,000. Approximately five firms will be awarded in July 2010 by NAVFAC Marianas.

A Construction Management contract including engineering, technician services, scheduling, field support, submittal review and the like services not to exceed $100 million is set to be awarded with target date in July 2010. Offers are already in hand.

Construction Management services (small business) including engineering, technician services, scheduling, field support, submittal review and the like services not to exceed $40 million will be awarded with target date in July 2010.

capacity is a firm-fixed price of $4 billion over a period of five years (base plus four options). The typical task order range is $15 million to $300 million with a minimum guarantee of $100,000. A total of 7 firms were awarded contracts in May 2010 by NAVFAC Pacific through tradeoff or LPTA for TO awards.

To join SAME Guam Post, logon to SAME.org and proceed to New Membership. 08 JUNE2010

CONSTRUCTION NEWS BULLETIN

www.guamcontractors.org


COMMITTEEUPDATE INSTALLATION

TITLE

$x1,000

Combined Support Maintenance Shop Phase 1

19,000

ANDERSEN AFB

Guam Strike Ops Group & Tanker Task Force Renovation

9,100

ANDERSEN AFB

Guam Strike South Ramp Utilities, Phase 1

12,200

ANDERSEN AFB

PRTC - Combat Communications Operations Facility

9,200

ANDERSEN AFB

PRTC- Red Horse Headquarters/Engineering Facility

8,000

ANDERSEN AFB

PRTC- Commando Warrior Open Bay Student Barrack

11,800

NAVHOSP GUAM

Hospital Replacement (Increment 2)

70,000

GUANG BARRIGADA

INSTALLATION

TITLE

For any additional questions, please contact: NAVFAC Marianas Acquisition Director, Andy Wall at email address Andrew.Wall@fe.navy.mil or phone (671) 339-6148; or, NAVFAC Marianas Small Business Advisor, Al Sampson at e-mail address Albert.Sampson@fe.navy.mil or phone (671 339-7090. Information is also available from Federal Business Opportunities at http://www.fedbizopps.gov/.

$x1,000

NAVBASE GUAM

APRA HARBOR WHARVES IMPROVEMENTS (Increment 2)

40,000

GUAM ROADS

DEFENSE ACCESS ROAD IMPROVEMENTS

66,730

ANDERSEN AFB

NORTH RAMP UTILITIES (INCREMENT 2)

79,350

ANDERSEN AFB

NORTH RAMP PARKING (INCREMENT 2)

93,588

NAVBASE GUAM

Apra Medical Clinic (GOJ)

NAVBASE GUAM

Waterfront HQ Building (GOJ)

FINEGAYAN

Fire Station (GOJ)

FINEGAYAN

Utilities and Site Improvements, phase 2 (GOJ)

FINEGAYAN

Finegayan Site Prep and Utilities, Phase 1

75,000 -100,000 15,000 -25,000 15,000 -25,000 250,000 -350,000 147,210

HOW HIGH DO YOU WANT TO GO? SCISSORS FROM 15’ TO 43’, BOOMS FROM 30’ TO 126’!!! CALL US TODAY!

EAST-WEST RENTAL CENTER 958 N. MARINE CORPS DRIVE, UPPER TUMON PHONE: 646-1463 * FAX: 649-9069 WWW.EASTWESTRENTAL.COM

www.guamcontractors.org

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 09


CONSTRUCTIONHEADLINE CONSTRUCTIONHEADLINE

CORE TECH–AMEC–SKEC

GETS BIG MACC

By Joshua Tenorio

Guam First Program Launched, Small Businesses Sought Over 300 representatives from many Guam businesses attended a Small Business Outreach program held at the Guam Hilton Resort & Spa on May 12. The event was sponsored by Core TechAMEC-SKEC LLC, one of 7 joint venture groups awarded the Guam Multiple Award Construction Contract, commonly referred to as the Big MACC. The $4 billion contract for design and construction work to support the U.S. Defense Policy Review Initiative in the Pacific region involves the relocation of U.S. Marine Corps forces from Japan to Guam . The five-year contract is the largest ever awarded by the U.S. Naval Facilities Engineering Command, Pacific (NAVFAC). Construction projects may include barracks, dormitories, administrative facilities, communications facilities, educational facilities, medical facilities, dining facilities, recreational facilities, retail facilities, industrial facilities, warehouse facilities, ranges, operational

training facilities, streets, bridges, utilities, infrastructure, waterfront-marine facilities, piers, wharves, dredging, aviation facilities, including hangars, runways and aprons, as well as other base-development facilities. Projects will require incorporation of sustainable features such as Leadership in Energy and Environmental Design (LEED) building standards.

Managing Director of the JV. “It is an honor to AMEC, CORE Tech, and SK E&C to be recognized and included as part of this global team.”

Focusing on the Small Business opportunities, the event highlighted the JV’s Guam First program to aggressively identifying local suppliers and subcontractors for the upcoming work. AMEC has received the Dwight B. Eisenhower Award Noting that AMEC, Core Tech and SK E&C for excellence in the Small Business have worked together before on major Program and has been recognized for 12 projects, the joint venture’s proposal said successful Mentor Protégé programs. the team has the wide-ranging capabilities, capacity and the synergistic teamwork necessary to provide the Navy with AMEC is a focused supplier of high-value projects “that meet or exceed all the consultancy, engineering and project established goals, including quality, safety management services to the world's natural resources, nuclear, clean energy, and timeliness.” water and environmental sectors. With “This award is the culmination of several annual revenues of over US$3.7 billion, years of NAVFAC planning and bilateral AMEC designs, delivers and maintains negotiations by the American and strategic and complex assets for its Japanese governments,” said AMEC customers. The company employs over Executive Vice President Paul Pettit, 22,000 people in around 40 countries worldwide. See amec.com

Core Tech International is a well established, full-service Guam general contractor. The company employs 500 workers, maintains a full inventory of heavy construction equipment, workforce housing assets and construction facilities, and has annual revenues of US$63 million. Core Tech has successfully completed 164 projects on Guam for the U.S. Department of Defense. See coretechintl.com

SK E&C was founded in 1977 and is an affiliate of SK Group, the third largest holding company in Korea . SK E&C has performed over 1,000 domestic construction projects including wharves and piers in 20 countries, and most recently, was awarded the design build contract for land development, new and existing, utilities, and infrastructure for the US Army Garrison-Humphreys in South Korea . See skec.com www.guamcontractors.org

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 11


P.O.Box 10838 • Tamuning,GU 96931 • Tel:(671) 473-43747 • Fax:(671) 473-4370 • www.fleetserviceguam.com • llimtiaco@fleetservicesguam.com


CRANECRITIQUECORNER CRANECRITIQUECORNER

This month’s topic:

The Importance of Solid Ground Support

A recent crane accident study revealed that over 50% of crane accidents are caused by improper crane set up. One important factor of proper crane set up is a solid supporting surface. The ground should be compacted and stable enough to support the weight of the crane and its load. Areas with known buried utilities, culverts, or pipelines should be avoided. If ground stability is questionable, additional blocking or cribbing to increase ground support should be used. If a critical lift is planned, core boring may be necessary to ensure no voids are under the set up area. We have all heard of the general rule that blocking should be three times the surface area of the outrigger pad. Let’s consider a specific crane making a lift and decide if this is really necessary.

Out test crane is an 80 ton truck crane with 24 inch square outrigger pads. We will plan on a 60 ton lift off the rear. If the cranes weight is averaged out at 20 tons per outrigger, the set up square foot pressure is 10,000 lbs. At first glance an operator may assume the ground support is adequate if there is no deflection or sinking. If the 60 ton load is lifted at maximum radius for this crane, 85% of the cranes weight (68 ton) will be transferred to the rear outriggers. There will now be 34 ton on each rear outrigger bringing square foot pressure to 17,000 lbs. Add the load weight of 60 ton, and an additional 30 ton on each rear outrigger or 15,000 lbs per each square foot totaled with the 17,000 lbs crane weight equals 32,000 lbs. or slightly over three times the original starting weight of 10,000 lbs. Blocking equaling three times the pad dimensions would maintain ground pressure close to 10,000 lbs.

ting a high percentage of the total load on one outrigger.

Outrigger floats that are inadequately supported may sink enough to cause the load to swing out past the cranes capacity at a given radius or cause the crane to operate in an unacceptable and dangerous unlevel plane. A crane operating other than level within 1° risks side loading the boom resulting in structural collapse or crane tip over. In conclusion: Blocking with three times the area of the outrigger float should be considered as a minimum dimension.

Unacceptable outrigger blocking found during a recent crane inspection

Larger square footage blocking may be required if the lift is considered critical or the load is moved over a corner, transmitOutrigger float with adequate support

14 | JUNE2010

CONSTRUCTION NEWS BULLETIN

www.guamcontractors.org


CRANECRITIQUECORNER CRANECRITIQUECORNER

This month’s test quiz addresses load chart issues:

1) What is required on a rubber tired truck crane before a load is permitted to be lifted over the front quadrant? 2) Rated capacities listed in the load charts are based on either structural strength or stability. How are these capacities differentiated in the load charts? 3) If making a lift with a boom length in between the boom lengths listed in the load chart, what capacity should be used, the next shorter, or next longer boom length capacity?

Answers to last month’s test quiz: 1) What is the load angle factor on a bridle sling with 30° sling to horizontal angle? Answer: It doubles The rated capacity of any sling used to lift a load is largely dependent on the angle formed between the sling and the horizontal plane. If a single sling is used, the angle is at maximum or 90°, so the load angle factor is 1. In other words, if the load on the sling is 1,000 lb, the sling tension is also 1,000 lb. However, when using a multi-part bridle sling, angles are created and the sling tension increases accordingly. The larger the angle the better. A good angle to shoot for is 60°, with a 1.15 angle factor, this increases the tension on the sling by approximately 15%. A 1,000 lb load on each sling of a 2-part bridle with 60° angles would increase tension to 1,150 lb. The 60° angle is simply arrived at by assuring the slings are the same length or longer than the pick points are from each other. For example, a 40 foot container should have 40 foot slings used for lifting to ensure the 60° angle. The 30° angle is the absolute lowest angle allowed by OSHA and ASME B30.9. An interesting thing occurs when lifting with slings at a 30° angle, the

www.guamcontractors.org

tension exactly doubles. Sling angle load factors are important for riggers and operators alike for this reason. If using a 2-part bridle with a 30° (sling to horizontal) angle to lift a 10,000 lb load, the slings would share the 10,000 load at 5,000 lb each. But each sling would have a 10,000 lb tension on it, (5,000 lb load x 2 angle factor). Also, another factor that must be considered is the increased load tension created by sling angles affects lifting eyes, shackles, hooks, etc. as well as translating additional compressional forces on the load itself. 2) What is the normal angle of choke of a choker hitch and what percent capacity of a sling is a choker rated? Answer: Approximately 135°, and 75% The choker hitch is the weakest of the three basic types of hitches. The rated capacity of a choker hitch is usually 75% of the capacity of the sling used as a straight hitch. When a load is hanging free, the normal angle of choke is 135°. If this angle is less than 120° a reduction in the choker capacity must be made. This is the reason it is not a good idea to beat

down the sling eye of a choker hitch while tension is applied by the crane. If the eye is beat down or the choker is along side of the load while being used to roll the load, it is possible a low angle such as 0 to 30° is the result and the rated capacity reduced as much as 50%. Therefore, a 10,000 lb sling used as a choker hitch would be rated at 7,500 lb. If this choker hitch had a low angle such as required for rolling a load the capacity would be reduced another 50% or 3,750 lb. This factor alone is the reason many slings fail during a lift, overloading due to failure of sling angle consideration and the resultant increased tension.

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.

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 15


FEATURESTORY FEATURESTORY

on Guam employers have been relatively free of scrutiny by the various government regulatory agencies. However, as construction projects increase, and number of new businesses bloom, employers can expect that there will be infusion of funds into regulatory agencies such as OSHA and EEOC. Therefore, employers must be diligent in ensuring they and subcontracted companies follow these government regulations. Additionally, primary employers are ultimately responsible for the actions or failure thereof of their subcontractors. For example, under OSHA regulations, the Walsh-Healey Public Contracts Act requires that “no work under contracts entered into by any Federal agency any amounts exceeding $10,000 must be performed in surroundings or under working conditions which are unsanitary or hazardous or dangerous to the health and safety of employees.” Failure to provide a safe and sanitary workplace for employees could result in fines worth several thousand dollars per employee affected by these work conditions. The Davis-Bacon Act requires that all federal contractors and subcontractors pay their laborers and mechanics not less than the prevailing wage rates and fringe benefits, as determined by the Secretary of Labor. Contractors or subcontractors found to have violated this Act may be subject to contract termination and debarment from future contracts for up to three years. In addition, contract 18 | JUNE2010

payments may be withheld to satisfy liabilities for unpaid wages and liquidated damages that result from violations of this act and other payroll violations, such as overtime pay violations. As companies increase their level of business, the number of staff is also likely to increase. Employers need to be aware of verification requirements for new employees. These include the I-9 and E-Verify. I-9, Employment Eligibility Verification form All new employees must complete I-9 form, the Employment Eligibility Verification, whether or not the employees are assigned to federal contracts. The three (3) major changes in the verification form are as follows: 1)All documents presented as proof of identification, including US passports, must be current. 2)Temporary Resident Card and outdated Employment Authoriza tion Cards (Forms I-688, I-688A, and I-688B) are no longer acceptable proof of employment verification. 3)Valid passports for citizens of Federated States of Micronesia (FSM), Republic of the Marshall Islands (RMI), along with Form I-94 or Form I-94A indicating nonimmi

CONSTRUCTION NEWS BULLETIN

grant admission under the Compact of Free Association between the United States and the FSM or RMI have been added to the list of acceptable documents. E-Verify is an Internet-based system that allows an employer, using information reported on an employee's I-9 Form, to determine the eligibility of that employee to work in the United States. For most employers, the use of E-Verify is voluntary and limited to determining the employment eligibility of new hires only. There is no charge to employers to use E-Verify. The E-Verify system is operated by the Department of Homeland Security in partnership with the Social Security Administration. E-Verify is mandatory for those with federal contracts or subcontracts that contain the Federal Acquisition Regulations (FAR) E-Verify clause. However, it is voluntary for other employers. A contract is considered exempt if one or more of the following apply: •Contract is less than 120 days •Valued at less than $100,000 •All work is performed outside the United States •Contracts contain only commercially available off-the-shelf (COTS) items and related services •Employer does not have federal contracts

www.guamcontractors.org


The Alphabet Soup of Labor Laws and How They Spell Out – FLSA, FMLA, ADA, and GINA Fair Labor Standards Act (FLSA) mandates overtime pay and exempt or nonexempt status of employees. Exempt employees, usually managers, supervisors and outsides sales staff are employees exempt from overtime pay. Being a salaried employee does not necessarily qualify a person to be an exempt employee. To qualify under exempt status, the employee must “pass” the 3 tests: 1) Salary basis – minimum $455/week, 2) Executive duties basis – performs primarily executive or management roles, 3) Administrative duties basis - directly related to management or general business operations of the employer a primary component of which involves the exercise of independent judgment and discretion about matters of significance. Nonexempt employees must be paid time and a half for hours worked beyond 40 hours per workweek. Example: The payroll clerk must wait for the supervisors to submit the payroll hours, and the clerk then inputs the information into a payroll system. The system automatically calculates the pay, benefits, etc. The system also automatically cuts the payroll checks. The clerk then delivers the checks to the supervisors. Most of this work is done independently without close supervision. The clerk is a salaried employee. Because the clerk works independently and payroll could be considered a matter of significance, should the clerk be placed under exempt status? Answer: The clerk’s work does not require independent judgment or discretion. Therefore, the payroll clerk should be designated a nonexempt employee, even though she is a salaried employee. The Family and Medical Leave Act (FMLA) provides employees with time off from work to care for their own or a family member’s serious health condition or to care for a newborn or adopted child. Effective January 16, 2009, the FMLA regulations were expanded to include military caregiver and exigency leave. The FMLA is applicable only to employers with 50 or more employees; and the employer is required to respond to the www.guamcontractors.org

employee within five days of receiving a request for FMLA leave. The easiest way to comply with this response requirement is to use the FMLA model form Notice of Eligibility and Rights & Responsibilities (WH-381) An employee is eligible for FMLA leave only if the employee meets all three of the following requirements: 1) Has been employed by the employer for at least 12 months, 2) Has been employed for at least 1,250 hours of service during the 12-month period immediately preceding the commencement of the leave, 3) Is employed at a work site where 50 or more employees are employed by the employer within 75 miles of that work site. Example: On June 30, a pregnant employee informed you that she will be taking pregnancy leave in one month. She worked only 900 hours the past 11 1/2 months, and is scheduled to work only 20 hours in the next two weeks. However, she is eligible for 20 hours of vacation. Your company has only 25 employees. Is this person eligible for FMLA? By when must you advise this employee of her eligibility? Answer: This employee is not eligible for FMLA because 1) the company has less than 50 employees; 2) she worked less than 1250 hours during the 12 month period immediately preceding the commencement of leave. The company must notify her by July 5 (or July 6, if July 4th is a holiday) that she is not eligible for FMLA. However, the company must notify her that she is eligible for 20 hours of vacation. American Disabilities Act (ADA) prohibits covered employers from discriminating against employees or potential employees with disabilities. Additionally, employers must provide reasonable accommodations to allow employees to perform the essential functions of the job. The employee is not entitled to the accommodation of his choice but only to reasonable accommodation. Therefore, employers and employees should enter into an interactive conversation that will enable the employer the means to provide reasonable accommodations; allowing the employee to perform the essential

functions of the job. However, it does not mean employer need to continue to employ the disabled employee if even with reasonable accommodation, the employee cannot perform the essential functions of the job. Example Alcoholism is considered a disability and protected under ADA. Bruce VandenBroek, a boiler utility operator for PSEG Power Connecticut LLC (PSEG) was terminated because he violated the “no call/no show” policy. Mr. VandenBroek claimed that because he was an alcoholic, he was protected under the ADA regulation. Additionally, the plant manager stated VandenBroek was a good operator when he showed up for work. However, the 2nd Circuit upheld the termination because reliable attendance at scheduled shifts was an essential function for a boiler utility operator, and that VandenBroek had not presented sufficient evidence that he was “otherwise qualified” to perform his job. Genetic Information Nondiscrimination Act (GINA) prevents discrimination on the basis of genetic information. How does this apply to the employer? GINA permits an employer to obtain medical certification that includes genetic information to verify that someone qualifies for leave under the federal and state FMLA laws. However, GINA does not apply to non-FMLA leave. For example, an employer may request for medical information that contain genetic information from an employee requesting for FMLA time off due to cancer. However, the employer may not request for genetic information if the employee is asking for time off, not under FMLA, to care for a relative with cancer. Like ADA information, any genetic information must be kept in a medical confidential file, separate from the employee’s personnel file. The above labor laws and regulations touch only the surface of laws that affect company operations and the management of staff. Look out for other articles on labor laws in future issues. Grace Donaldson is a consultant on strategic human resource planning and management training. Contact information; Cell Phone: 671-727-0806, email: donaldson.solutions@gmail.com.

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 19


FEATURESTORY FEATURESTORY

By Jac Perry - Guzman

G4S:

Global Service Company Global Service Company Committed to Growth on Guam Committed to Growth on Guam

General Manager Phil Law describes G4S as a solution based service company. While maintaining head of operations for the last 15 years, Law explained G4S adheres to strict internal processes built around an “ISO 9002” standard. “This quality assurance standard determines everything from how we recruit our staff to contract management, purchasing and invoicing,” he said. The G4S group is based in the United Kingdom and provides each country with "Group minimum standards" which are based on best industry practices. “Because we operate in over 110 countries worldwide it is not possible for such a large organization to dictate exactly how you will operate, therefore each country operates to the highest regulatory degree in all of areas of its business, finance, legislation pertaining to services we offer and of course human resources,” Law added. G4S offers a variety of services including security. “Security procedures are unique to every customer and each property that we operate. Although we have some 40 standard operating procedures for a typical hotel property, the templates must be reviewed and written specifically for customs property,” Law explained.

20 | JUNE2010

“Things we consider when drafting an SOP manual, type of facility, manufacturing, retail, banking, tourism, lay out of facility, area around it, what outside influences may affect the customers property, numbers of employees, visitors, floors, swimming pools, surrounding fences, cameras and the list can go on and on. Most importantly we must consider the customers' expectations, current procedures and its culture. Based on the Risk assessment the SOP manual will be drawn up, and then the training begins,” Law said. “Every day, about 20 - 40 incidents are reported and all managers receive this information including myself so we can assess possible issues, complaints or liabilities and act upon them,” he said.

G4S is the only company locally who provides formal employment training before officers are placed on posts. “This two day course covers subject matter such as patrolling skills, report writing, health and safety, risks and threats and a host of other material. Our employees value this training, it gives them the confidence to perform their duties but we also include life skills which can be used in any situation,” Law explained. “Further training would be in the form of site specific on job training, perhaps life guard qualifications, fire arms training, in the region of 180 – 200 staff are CPR

“Our officers have been commended for significant life saving acts in swimming pools, fires in busses, evacuated a family from a burning apartment as well as facilitating arrests for Guam Police Department.” “It is very important to us the GPD officers see G4S officers as a resource to help in crime prevention and reporting. The challenge with the security industry worldwide is identifying and showing value for all the incidents that never occur due to the diligence of the officers,” he added.

CONSTRUCTION NEWS BULLETIN

Phil Law, General Manager

www.guamcontractors.org


FEATURESTORY FEATURESTORY

and 1st Aid trained with 5 instructors with American heart association and Red Cross,” said Law. “Other areas we are interested in investing in our staff are Certified Lodging Security officer, supervisor and security directors under the American Hotel and Motel Association as well as highly converted Certified Protection professional CPP that two senior managers are currently undertaking,” he added. “In terms of administration and support staff we encourage our human resources and accounting staff to pursue their degrees and professional qualifications supported financially by the company,” said Law. In the event of an accident on the job, Law expressed, “The most important thing to do is ensure that there are no other risks to persons. When this is satisfied, the area is cleared of bystanders but retains the witnesses and victims, secure the crime scene area to protect the forensic evidence. While doing all of this the officer would have called for backup support and emergency services, fire, police etc.” G4S employs approximately 900 security staff between Guam and Saipan and 1,000 staff members overall. In recent years, G4S has experienced significant growth. Law explained, “In the early days we benefited from the down turn in the economy where by in house security teams were outsourced by hotels, more recently we acquired the assets and contracts of Pacific Security Alarm and Armored express taking us into CCTV and burglar alarm services as well cash in transit.” In the future for G4S, Law said, “We see growth in the area of financial institutions and cash processing as well as fire systems and business solutions including document imaging, destruction and business processes.”

www.guamcontractors.org

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 21


PHOTOHIGHLIGHTS PHOTOHIGHLIGHTS

GCA May Luncheon New Board Sworn In

24 | JUNE2010

CONSTRUCTION NEWS BULLETIN

www.guamcontractors.org


PHOTOHIGHLIGHTS PHOTOHIGHLIGHTS

GCA Safety Conference May 24th - 28th 2010 ort Guam Holiday Res

www.guamcontractors.org

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 25


PHOTOHIGHLIGHTS PHOTOHIGHLIGHTS

Ukudu Workforce Village

Ground Breaking May 27th

ORTATION GUAM TRANSP GRAM TRAINING PROaining Tr on the Job ices & Supportive Serv 12th May Governors om, o R e c Conferen Adelup

2010 Relay for Life May 28th - 29th GW Field

26 | JUNE2010

CONSTRUCTION NEWS BULLETIN

www.guamcontractors.org


SMALLBUSINESS SMALLBUSINESS

Fundamentals of In previous articles written for the GCA bulletin, I’ve outlined the process and expectations of a surety company when considering a contractor for surety credit. Basically, it’s a ‘how to’ with respect to a contractor qualifying for bonding. However, this article is more elementary in that it defines much of the terminology and basics of bonding. So let’s begin with describing the basic bond arrangement and the parties involved… Surety is a three party arrangement where one party (contractor, referred to as the Principal) has a contractual obligation to second party (owner, referred to as the obligee); with a third party (the surety) being a guarantor of the first party, both jointly obligated to the owner/obligee. Detailing and defining the three parties a bit further, there is: the Contractor (also referred to as the Principal). The Principal is to perform the work as contractually outlined in the underlying contract, plans, specifications and general conditions which all detail what the Principal is expected to do and within what time frame. the Obligee: The obligee is the party for whom the contractor is performing the work. The obligee, as the owner, has little expected of them. They of course must adhere to the contracts terms and (perhaps most importantly) pay the Contractor as contractually agreed. Other that this there is little required of the Obligee. the Surety: The surety is the ‘backer’ of the contractor. They prequalify the contractor/principal in terms of experience, capability and financial capacity. If sufficient, the surety will agree to issue a bond for the specific contract. The bond issued guarantees certain obligations of the contractor. If all goes well, the surety will have little to do (and little communication with the owner/obligee). In due course they will be able to close their bond file (when appropriate) without much involvement. However, if the contractor/principal

28| JUNE2010

Bonding

should fail to perform on the job, or fail to pay certain vendors, then the surety would become much more involved with the Obligee (and Contractor/Principal) in finding a remedy to the situation. There are basically three primary types of bonds pertaining to contract surety. These are: Bid bonds, Performance Bonds and Payment Bonds. Each is briefly described below: Bid Bonds: Bid bonds are most frequently mandated on public/gov’t projects. If/when required, the bid bond will be provided to the owner (government) by the contractor as part of the contractor’s bid submission. The bid bond guarantees that the bid was placed in good faith and that the contractor, if awarded the contract, will enter in to the contract and provide the required Performance and/or Payment bonds. The bid bond is usually a set percentage of the total bid amount (usually 10% to 20% of the bid). In the event that the contractor fails to enter in to the contract or fails to provide the requirement Performance/Payment bonds, the owner has the right to claim to the surety for an amount up to the full penalty of the bid bond (ie. the full 10-20%). The amount of the claim depends on how much additional costs the owner incurs if the second-low contractor is to be selected in lieu of the low bidder. Performance bonds: The performance bond protects the owner (Obligee) from financial loss due to the contractor’s failure to perform in accordance with the contract, plans and specifications. If, on a bonded project, a contractor fails to perform accordingly, the owner has recourse to file a claim with the surety. The surety must then investigate and, if appropriate, step in and remedy the situation. They can do so by: 1) facilitating a bailout plan with the original contractor (if agreeable to the owner), or 2) the surety can find an acceptable replacement contractor at the surety’s expense, or 3) the surety can negotiate a financial settlement with the owner. Payment bonds. The payment bond protects the owner from certain unpaid

CONSTRUCTION NEWS BULLETIN

suppliers, subcontractors or labors (and other possible claimants) having a direct working relationship with the contractor (or, in some cases, under the contractor’s subs (ie. two layers down)). These are typically entities which have mechanic’s lien rights. In the event that the bonded contractor (or his subcontractor) is unable to pay uncontested amounts payable to certain subcontractors, suppliers or laborers (or other possible claimants), the surety would then step in and satisfy the uncontested job-specific payables of the contractor. It is interesting to note that Payment bond claims can occur even if the job site performance is proceeding satisfactorily. One final item worth explaining is the Indemnity Agreement. The concept of the indemnity agreement is one of the defining differences between surety and insurance. The indemnity agreement is a critical element of a surety relationship and is one of the main aspects of surety that lend it to appear more like bank credit than an insurance policy. Resembling a bank’s loan agreement, the primary function of the indemnity agreement is to serve as the contractor’s agreement to reimburse the surety for all costs incurred by the surety in the event that the surety had to step in and complete the bonded contractors’ obligations. The bottom line: As a form of credit, if the surety has to pay out to honor any of the contractor’s obligations, the contractor must reimburse the surety. I hope you have found the above informative and invite you to further explore surety bonds by visiting the Surety Information Office website at www.sio.org. You may access the following link to review my previous article “How to Qualify for U.S. Treasury Listed Bonds”; www.guamcontractors.org/publications/Se ptember_2009.pdf

Adam Baron Bond Manager Cassidy’s Associated Insurers, Inc. www.cassidysguam.com www.guamcontractors.org


SMALLBUSINESS SMALLBUSINESS

A Seminar on “Gender Sensitivity & Prevention of Sexual Harassment in the Workplace”

To be held at The View Function Room, Marriot Hotel, 8:00am – 5:00pm on May 25, 2010 ($100*/ participant inclusive of lunch)

Does your company promote “gender sensitive” values?

This Seminar will benefit CEO’s, HR practitioners, company managers and supervisors to orient themselves with the laws on gender equality and sexual harassment, and to equip themselves with the understanding and skills to promote gender sensitivity among their employees to ensure a harmonious working environment. At the end of this seminar, participants should be able to:

Does your office environment discourage sexism and sexual harassment?

• Evaluate personal assumptions, attitudes, and beliefs regarding one’s self and the gender and recognize the positive/negative impacts.

Are your HR policies in accordance with the laws on gender equality?

• Harness the knowledge about basic gender differences to improve communication, peoplehandling skills, and leadership styles. • Recognize ways for management to promote a gender sensitive workplace for the purpose of enhancing productivity and quality in the workplace. • Bring to consciousness the laws, policies and rules of conduct when dealing with the other genders.

SPEAKER: Dr. Marshall Valencia, Ph. D, On Social Organizational Psychology Project Director and Research Fellow of the Social Development and Research Center, De La Salle University, Manila, Philippines, author of various scientific journal publications: Director in the Board of the Psychological Association of the Philippines; Consultant to various multinational companies on organizational development.

The Guam Chamber of Commerce Small Business Focus & Development Committee in cooperation with Guam Small Business Development Center presents the 2010 Small Business Management Seminar Series: BASIC LABOR LAWS / PRACTICES & UPDATES Friday, June 18. 8:30 a.m. – 10:30 a.m. Presented by Grace Donaldson, Solutions: Human Resources Management & Recruiter MARKETING & PR BASICS Friday, July 9, 8:30 a.m. – 10:30 a.m. Presented by Cathy Gogue, Bangkok Designs Registration Information Chamber Member Admission: $10.00/person Non-member Admission: $20.00 Tel: 472-6311/8001• Fax: 472-6202 Email: gchamber@guamchamber.com.gu

www.guamcontractors.org

The Winning Solution for ALL your Professional Needs Professional Development Courses: • Fair, Square and Legal, June 21 – 25 • How to Plan and Manage your Company Budget, June 21 – 25 • How to Sharpen Your Business Writing Skills, June 22 – 28 • Presentation Success: How to Plan, Prepare and Deliver, July 6‐10 • Introduction to Business Writing, July 28 – 29 • Public Speaking, August 9 ‐ 10 Technology Courses: • Introduction to MS Word, June 22 • Introduction to MS Excel, June 23 • Introduction to MS PowerPoint, June 24 For more information, call 735-2600-2 or email cepeda@uguam.uog.edu or visit www.uog.edu/pip

UNIVERSITY OF GUAM Professional & International Programs

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 29


MEMBERBENEFITS MEMBERBENEFITS

by: Rynette DeCastro, CDM, CFPP

What You Need to Know

About Mumps

With the recent mumps outbreak here on island, it’s important to know the facts for the health and safety of you and your family. Mumps is a contagious disease caused by a virus, and usually spread through saliva or mucus from the mouth, nose, or throat when an infected person coughs, sneezes, or talks. Items such as drink cans or cups can also spread the virus if shared. The virus itself can infect many parts of the body, most especially the parotid salivary glands. These glands, located in the back of each cheek between the ear and jaw, become swollen and painful. Other complications include inflammation of the testicles, inflammation of the brain and spinal cord, inflammation of the ovaries, and/or temporary or permanent deafness. Cases of mumps typically start with a high fever (up to 103 degrees Fahrenheit), accompanied by headache, muscle aches, tiredness, and loss of appetite. The salivary glands usually become increasingly

swollen over a period of 3 days, with accompanying pain as one swallows, talks, chews, or consumes anything acidic (like citrus fruits and juices). The incubation period for the disease can be anywhere from 12 to 25 days, but keep in mind that a person with mumps can still be contagious for up to a week after symptoms end. If your child is exhibiting any of the symptoms above, see your doctor immediately to confirm the diagnosis and begin isolating the patient. Unfortunately, since mumps is caused by a virus, it cannot be treated with antibiotics or any specific treatment. Non-aspirin fever relievers may be prescribed, and swollen glands treated with warm or cold compresses. You can also help prevent spreading the virus by minimizing contact with others, keeping your child home from school, covering your mouth and nose when you cough or sneeze, not sharing drinks or eating utensils, and most importantly washing your hands regularly with soap and water.

The good news is that most people with mumps fully recover. The mumps vaccine (MMR or MMRV) is the best way to prevent mumps, as its effectiveness measures at about 93%. Since the introduction of the mumps vaccine, annual cases in the U.S. have dropped from a quarter of a million each year to less than 1,000. Children should receive the first dose of MMR at 12-15 months, then a second dose at 4-6 years. Two doses of the vaccine are more effective than one and prevent most, but not necessarily all, cases of mumps and mumps complications.

For  more  information  on  healthy  living  tips,  please  visit  our  website  at    www.netcarelifeandhealth.com.    If  you  would  like  more  information  on  Moylan’s NetCare GCA health plan or on  a  commercial  coverage  exclusively  for  your  company,  please  call  Leah  M.  del  Mundo at 472-3610 x 211 or email her  ldelmundo@netcarelifeandhealth.com.

Small Business News Continued Doing Business with Department of Veterans Affairs Mr. Tim J. Foreman, of the Department of Veterans Affairs (VA) Office of Small and Disadvantaged Business Utilization (OSDBU), will provide an overview on how to do business with the VA and how your business can take advantage of the growing number of opportunities. Event Date / Time: June 17, 9:00am to 11:00am Event Fee: No Charge Event Location: Room 129, School of Business & Public Administration, University of Guam

Call 735-2552 for registration, more information or visit www.guamptac.com

www.guamcontractors.org

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 31


ONGUARD ONGUARD

On February 13, 2010, 27 Guam Air National Guard personnel embarked on a journey to Osan Air Base, Republic of Korea. Their mission: Provide initial bed-down, lodging and reconstitution for Rush Park (Tent City), which is projected to hold in excess of 800 military and civilian personnel during the 2010 Key Resolve Exercise. The Guam team is comprised of 15 RED HORSE, 1 Knowledge Operations Management and 11 Force Support personnel. Additional support was also provided by personnel from Osan AB, Kadena AB and the continental United States. Key Resolve is an annual exercise, performed with the joint services as well as the Korean military. It is the second largest U.S. military exercise in the world, incorporating over 11,000 military personnel in a 10-day exercise. The exercise focuses on training for all who participate as well as the command and control of the forces involved.

Key Resolve Team Guam was tasked with providing and sustaining lodging and facilities for over 800 personnel. Braving the bitter winter cold and flurries of snow, team Guam erected 27 temper tents, demolished wood partitions in 3 K-Spans and completed a myriad of infrastructure projects in less than 2 weeks. They will continue to provide sustainment support and engage themselves in improvement projects in tent city for the duration of the exercise. The force support side of team Guam is responsible for lodging assignment and providing MWR support for the tenants of tent city. As part of the morale improvement effort, Team Guam setup 21 computers, 16 phone lines, and 8 wireless routers,.

The Adjutant General of the Guam

red horse

Team Guam Supports

By: Patrick Sanchez II

National Guard, Major General Donald J. Goldhorn recently visited Team Guam at Osan AB. During his visit, he recognized and thanked those who helped and contributed to making this year’s Rush Park a success. In one of the group gatherings, he echoed a statement from Lt. General Jeffrey A. Remington, the 7th Air Force Commander, in saying that ,“This is one of the best support teams to ever come to Rush Park.”

Team Guam will be busy in the next couple of weeks, hosting a Victory Party to thank all those who helped make this year’s exercise a success, in which Guamstyle food will be served, and also complete the final task of reconstitution. Then it’s back home to friends and family and nice, warm, predictable weather.

THE LEGEND CONTINUES. 580M 580 SUPER M 580 SUPER M+ 590 SUPER M 590 SUPER M+ Reliability. Case has been setting the standard for 50 years... and we’re raising the bar again. Our new M Series 3 loader/backhoes have been updated with turbocharged Case Family IV engines to deliver more muscle, boost fuel efficiency and meet Tier III emission requirements. Combine that with features like Pro Control and the quietest, most comfortable cab in the industry, and you’ve got unbeatable productivity . Rely on the company that’s sold more than 500,000 backhoes world-wide, and get in the set of a Case loader/backhoe.

SUPERIOR RELIABILITY FUEL EFFICIENCY OPERATOR ENVIRONMENT SERVICEABILITY Get the full story on the new Case M Series 3 and the best warranty in the business.

For inquiries, please call: Socrates B. La Madrid Ph: (671) 646-4861 *222 • Cell: (671) 727-4872 • Fax: (671) 649-7460 Email: socratesl@blackguam.com International Equipment of Guam LA Division of Black Construction Corporation P.O. Box 24667 GMF, Guam 96921 c 2008 CNH America LLC. All rights reserved.Case is a registered trademark of CNH America LLC. o


Why a One-Page Strategic Plan For the skeptics, the author requests that you maintain an open mind to the possibility because you might be pleasantly surprised. There are three major problems with strategic plans. First, people tend to make them too complicated and don’t use them. Second, because people think they are too complicated, they don’t do them. Third, they are done poorly and are, as a result, useless. Clemson University Professor Dennis Bausman conducted a study of more than 600 general contractors with an annual volume of at least $50 million. His study found that only 75 to 80 percent of the surveyed contractors had a strategic plan. It’s often anticipated that a small company may not have a strategic plan, but he was surprised to learn that so many large contractors don’t have one. Bausman also learned those contractors with a strategic plan are on average 35 percent more profitable. (Bausman’s entire interview is available www.Jackstreet.com/Jackstreet/ WCON.Bausman.cfm or go New Construction Strategies Radio at www.NCS30.com.) Can you afford to give away 35 percent? Don’t worry; you don’t have to. Regardless of the size of your company, you can create a strategic plan that isn’t complicated. Also, the less complicated the plan, the easier it will be to use and the more likely it will be used. Plans often don’t work because too many companies skip over the critical stepstrategic thinking. Without strategic thinking, you find it’s garbage in and garbage out. This occurs because too often the process merely consists of long-term budget and income projections based not on facts, but on wishful thinking. Unfortunately some companies just focus on the process without investing in strategic thinking. They immediately launch into their mission and vision statements, their 34 | JUNE2010

objectives and the strategies to achieve the objectives. Obviously these four aspects of the strategic plan require thought and significant effort, but their major role is to establish guide posts or direction, not describe the plan in detail. The action plan is responsible for detailing the specifics for the next 90 days, but more on that later. Strategic thinking’s role is to determine the rules of the game then develop the best strategy to take advantage of those rules. This is no different than a coach determining how his team should best use its talent within the rules of the game. For many this process may seem daunting, but it doesn’t have to be. Norm Levy, author of The Seven Questions of Business Strategy, provides a simple way to stimulate your strategic thinking. He recommends that you ask seven critical questions, namely which, why, where, who, what, how and when? These seven questions don’t fit directly into your strategic plan, but unless you take the time and effort to answer them, you really aren’t in a position to create the various elements of your strategic plan. These questions provide the foundation.

The one-page strategic plan What goes into a one-page strategic plan? The mission and vision statements are each one- or two-sentence statements. The mission statement represents what you deliver to the client, and the vision statement is what the company gains in return and when those goals are achieved. The objectives are a little more complicated because to create a sustainable strategic plan, it must be a balanced plan that takes care of not only the company, but also the clients and the employees. If any of these three critical segments is ignored then it will cause the plan to fail. Therefore, a strategic plan should have eight to 11 objectives with the following breakdown.

CONSTRUCTION NEWS BULLETIN

By: 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. He can be reached at 800-861-0874 or by email at Growing@TedGarrison.com. For further information see his web page at www.TedGarrison.com.

These questions address the following: Which niche or niches should you be in? Why are you in that niche, and which values do you bring to that niche that differentiate your company and give it a competitive advantage? Where is your company (geographical areas and position in the marketplace)? Who are your people? What is your company’s culture? What are the results or goals you want to achieve? How will you achieve the desired results? What are your processes and methods? When do you expect to see results from your efforts?

www.guamcontractors.org


One on revenue One on profitability Two or three on marketing Four to six on operations, client loyalty, employee satisfaction or any other important issues The first two objectives on revenue and profitability are the basis of the vision statement. The two or three marketing goals address which niches you are in. Identifying the correct niches is the only way to achieve the company’s best performance. The other four to six address the issues to provide critical measurements on issues important to clients, employees and the company. While strategies describe how to achieve the goals, they should offer a big-picture perspective. For example, a company may decide it should develop a particular niche by expanding the region in which it offers its services. The strategies would identify the geographical areas it would move into. The one-page strategic plan would not go into the details of moving into those regions.

Instead, the details would be in the 90-day action plans. This makes sense because each new region may require a different approach. The action plan is critical for success. First, it is where the action is. Second, the person who must carry out the action plan should develop it. Of course, the action plan must meet the requirements of the objective it is working on. For example, to meet a five-year objective, the action plan must have timeline that is consistent with meeting that goal. When a plan is only 90 days long, it by necessity has a limited scope, which is an asset. The greatest strategists, such as Michael Porter, do a tremendous job of explaining why things happen, but they struggle to predict the future. They make long lists of factors to consider, which are all valid, but unfortunately no one has been able to create model that will accurately predict the outcome. Different experts interpret the data in different ways and make different conclusions.

Therefore, instead of making a large investment without any assurance of success, the 90-day approach allows a company to experiment or innovate. In essence, try different ideas to see what works and what doesn’t. This process allows the contractor to keep tweaking his approach until it’s fine-tuned. Also, when someone spends months developing a detailed plan then the feedback is not what was hoped for, there is strong resistance to adapting the plan. In other words, the smaller the investment in time and money, the easier it is to accept that modifications are needed. Any study on innovation talks about the idea of small and quick failures. Since no one knows what will work or not, the idea is to fail quickly and cheaply. Strategic planning is no different. No one has a crystal ball; therefore, a process is needed to sort the good ideas from the bad. Also, the strategic plan must be flexible so it can easily adapt to the changing business landscape. It’s not that the main fundamentals of your strategic plan will be in constant flux because they shouldn’t be. However, the details must constantly be adapted to the changing environment, just as a project must deal with the weather. The 90-day action plan provides this flexibility.

No longer a WASTE of time

Therefore, the one-page strategic plan describes the mission and vision statements and lists the objectives and the strategies to be used to achieve them and the key elements of the action plannamely, who is to do what and when over the next 90 days. The details are the responsibility of the person doing the work. Since several objectives are probably being worked on at the same time, various people will have different action plans, but only those people working on a particular action plan need to worry about those details. Everyone else involved in the strategic planning process should simply monitor the milestones, not micromanage the details. So if you don’t have a strategic plan, what are you waiting for? If you need help getting started, give us a call.

www.guamcontractors.org

CONSTRUCTION NEWS BULLETIN

JUNE2010 | 35


NEWMEMBERS NEWMEMBERS

JUNE 2010 Ph: (808) 682-8282 Fax: (808) 682-0391 Description: Heavy Equipment Sales & Rentals

Contractor: Acetown Inc. dba Toppy Furniture & Appliances 1088 W. Marine Corps Drive Suite C100 Dededo, GU 96929 GCA Contact: Wilfredo Onglao Email: wto@guam.net Ph: (671) 633-8885/6 Fax: (671) 637-8609 Description: Furniture, Appliance & A.C. Supply & Installation

Guam Support Services P.O. Box 315834 Tamuning, GU 96931 GCA Contact: Julie J. Murrell Email: manager@guamsupport.com Ph: (671) 647-4477 Fax: (671) 647-4477 Description: Vehicle Sales/Leasing, heavy equipment, tire sales/service, cargo shipping/logistics

Infratech International LLC 118 Aspengao CT. Barrigada, GU 96913 GCA Contact: Ravindra B. Gogineni Email: ravi@infratechintl.com Ph: (671) 888-5670 Fax: (671) 472-2971 Description: General Contractor Tereas Inc. P.O. Box 25675 GMF Barrigada, GU 96912 GCA Contact: Samuel Tereas Email: stereas@jssons.com Ph: (671) 649-0850 Fax: (671) 649-0851 Description: Heavy Equipment Rental & Sale of Sand Aggregate & Topsoil

Associate: American Machinery 91-238 Kalaeloa Blvd. Kapolei, HI 96707 GCA Contact: Gordon Ogi Email: gogi@amermach.com

JTC Services Guam, LLC 414 West Soledad Ave. Suite 501G Hagatna, GU 96910 GCA Contact: Tom Camacho Email: info@jtcservicesguam.com Ph: (671) 477-1389 ext. 122 Fax: (671) 477-1077 Description: Supplier of Safety Products, IT Equipment L-3 Communications – L-3 Services, Inc. 414 West Soledad Ave. Suite 500B Hagatna, GU 96910 GCA Contact: Mark Calvo Email: mark.calvo@l-3com.com Ph: (671) 686-1429 Fax: (671) 477-1077 Description: Defense & Government Contractor

Philnos Corporation 3F OAC Bldg. #27 San Miguel Ave. Ortigas Center Pasig, City, Philippines GCA Contact: Mabel T.G. Masangkay Email: mgm@philnos.com.ph hr@philnos.com.ph Ph: (632) 638-9498/9 Fax: (632) 687-1979 Description: International Recruitment Specified Technologies, Inc. 3530 33rd Way NW Olympia, WA 98502 GCA Contact: John Hurley Email: jhurley@stifirestop.com Ph: (360) 638-9498/9 Fax: (360) 866-8184 Description: Manufacturer of Firestopping Products and Fire-Rated Cable Pathway Devices Weld Inspection & Consulting Services, Inc. P.O. Box 2331 Priest River, Idaho 83856 GCA Contact: Jeanne M. Myers, President Email: wicsinc@hotmail.com Ph: (208) 448-0569 Fax: (208) 448-0569 Description: Services Yang Luck International Guam LLC PMB 720 Ste. 101-1270 N. Marine Corps Drive Tamuning, GU 96913 GCA Contact: Francis Lin Email: vera2010@msyangluck.com Ph: (671) 647-7988 Fax: (671) 647-7988 Description: Manpower Agency

Fire in the Hole No, that’s not a submarine – that's Bob Parker BBQ/Smoker Grill. This custom made oh-so-shiny grill is made from recycled materials found here on Guam; barrel was found in recycling yard, rebuilt an old axel destined for the scrap yard and welded piece together to make the firebox. A BBQ enthusiast himself, Bob’s mission was to build a grill that was not for commercial use but instead was built for celebrating the completion of projects and wanting to share with the rest of his fellow GCA members. If any GCA members are interested in turning heads as well as putting out great tasting food at your next BBQ party please contact Bob Parker or Ron Young at Parker Brothers. 647-8113 or 777-8101. One more thing…Its FREE for GCA members to use, heck, Bob will deliver it to you. 36 | JUNE2010

CONSTRUCTION NEWS BULLETIN

www.guamcontractors.org



GCA Construction News Bulletin June 2010