GCA Construction News Bulletin June 2013

Guam Contractors’ Association

NEWS BULLETIN

HIGHER LEARNING THE NCCER WAY

Vol.54 Issue 6 JUNE 2013

CONTENTJUNE

6

S.A.M.E.

10

COMMITTEE UPDATE

12

CONSTRUCTION HEADLINE

14

FEATURE STORY

18

PHOTO HIGHLIGHTS

22

NAWIC NEWS

24

GARRISON REPORT

26

MEMBER BENEFITS

28

MEMBER BENFITS

2 | JUNE2013

CONSTRUCTION NEWS BULLETIN

12

Construction Headline

14

Feature Story

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THEDIRECTORS PRESIDENT James A. Martinez, GCA PAST CHAIRMAN Robert Salas, Landscape Management Systems CHAIRMAN - ELECT Tom Anderson, Black Construction Corporation VICE CHAIRMAN - ELECT Art Chan, Hawaiian Rock Products SECRETARY/TREASURER John Sage, WATTS Constructors CONTRACTORS DIRECTORS: Narci Dimaoala, Amazon Construction Juno Eun, Core Tech International Tom Nielsen, Maeda Pacific Corporation Tom San Nicolas, dck pacific guam LLC John Robertson, AmOrient Contracting ASSOCIATE DIRECTORS: Paul Calvo, Calvo’s Insurance Underwriters Carlo Leon Guerrero, M80 Office Systems Inc. Patty Lizama, Pacific Isla Life Ray Yanger, Matson Navigation

THEEDITORIALS 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 Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: gca@teleguam.net. www.guamcontractors.org Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

THETEAM PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Tom Mendiola PRODUCTION: Geri Leon Guerrero Christopher “Taco” Rowland PHOTOGRAPHERS: Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson David F. Macaluso

Dr.Noel Silan DPM, ABMSP P.C.

Ted Garrison Patty Lizama

GCA STAFF: Francine Arceo Desiree Lizama COVER: Dr. Bert Johnson and GCA Trades Academy instructors at the Trades Center in Barrigada.

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S.A.M.E.UPDATE

S.A.M.E. RAISES FUNDS FOR STUDENTS AT GOLF TOURNAMENT The Society of American Military Engineers (SAME), Guam Post helped promote engineering education by sponsoring the Charlie Corn Scholarship Golf Tournament at STARTS Guam Golf Resort on May 18.

The charity raised approximately $35,000 for college students looking to pursue an engineering or architecture career. In all, 110 total golfers, comprised of both military and civilians, registered to play that day.

“On behalf of the Corn Family, we are grateful and pleased that SAME has continued this scholarship fundraising event”, stated Anthony Corn, who resides on Guam and is a grandson of Charlie Corn.

“As the longest running golf tournament on Guam, we look forward to continue supporting this worthwhile endeavor.”

This marks the 35th year of the annual event, which began with a shotgun start at 12:30 p.m. and covered STARTS’ East and West courses. Volunteers from DZSP 21, the Navy’s Base Operations Support Contractor, partnered with representatives from Chugach World Services, Inc., Hawaiian Rock Products, and DOCOMO PACIFIC as they registered golfers, provided food and refreshments, monitored play, and offered other assistance.

Wayne L. Cornell, president and chief executive officer of DZSP 21 and chairman of the tournament, said the tournament was a success and supporting education is always a good cause. SAME Guam Post recently awarded seven scholarships ranging in value from $3,000 to $4,000.

The presentation for the first installment of the scholarship payments took place at the General Membership Meeting held at the Outrigger Guam Resort on May 16, 2013.

The recipients and their respective guests were invited to attend the presentation.

This year’s recipients, universities and award amounts are included below:

• Jessy Marie Hardy • Leo Manibusan • Joseph Claveria • Hunter Stephens • Gabriel Kho • Julius Jose Raposa • Akashi Rouse 6 | JUNE2013

“To see the smiles on those students’ faces made all this hard and stressful tournament work worthwhile,” Cornell said. “The tournament would not have succeeded without the generous and faithful help of all of our volunteers, sponsors and donors. A hearty thank you to all of them.”

Eleven organizations each contributed $2,000 to the charity, seven more gave $1,000, ten committed $500, and another seven gave $250. There were tee box and hole sponsors as well. Triple J Motors, Atkins Kroll Chevrolet, Cars Plus Guam, and Nissan Motor Corporation Guam each offered a vehicle as the winning prize for a hole-in-one, though none were made that day. Volunteers also raised funds by selling mulligans, throws, and raffle tickets.

In-kind donations were provided by MCV, Ambros Distributors and Pepsi Cola. Many hotels, restaurants and businesses also donated prizes for this event. Delta Airlines donated round trip airfare to Japan as the grand drawing prize.

The golfers and volunteers enjoyed a tournament awards ceremony that featured a great dinner buffet, dozens of raffle prizes, as well as awards for the best golfers in several categories. Jun Toledo and Ed Jabinigan won first place in the tournament with a net score of 67.4, Rene Ramos and Gil Manansala came in second with a net score of 68.2, and Chris Reyes and Chris Castor earned third place with a net score of 68.6.

The tournament takes its name from the late Charles (“Charlie”) Lumen Corn, a well-known and successful businessman on Guam who generously contributed to many community activities. One of Corn’s numerous interests included engineering, which is why he provided the initial seed money for this scholarship fund. After his death in 1973, SAME continued this tradition in Charlie’s honor.

SAME offers workshops, training, and different activities for its members throughout the year. They also maintain strong connections with active-duty service members, civil service employees, contractors, engineers, and other organizations.

Seattle University University of Guam University of Portland US Air Force Academy University of Guam University of Portland University of Guam CONSTRUCTION NEWS BULLETIN

$4,000 $3,500 $3,500 $3,500 $3,000 $3,000 $3,000

JUNE 2013

Steady shot: Duane Cabrera, maintenance supervisor for DZSP 21’s Annex 1700 Transportation, completes a hole at STARTS Guam Golf Resort, as part of a charity for the Charlie Corn Scholarship Golf Tournament onMay 18. Society of American Military Engineers Guam Post sponsored the annual event.

Long yardage: Gil Manansala watches his golf ball sail across a field at STARTS Guam Golf Resort on May 18. Manansala was competing with more than 100 other golfers in the Charlie Corn Scholarship Golf Tournament for charity, sponsored by the Society of American Military Engineers Guam Post.

Scholarship Recipients: Group photo of scholarship recipients/guests, Captain Heckmann – President of SAME Guam Post (far left) and Tor Gudmundsen – Scholarship, Committee Chair (far right), taken during the presentation held at the General Membership Meeting on May 16, 2013.

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COMMITTEUPDATE

Military, Government and Labor Relations Committee Update – June ‘13 study of Military Treatment Facilities should have identified options that will eventually lead to further reductions in healthcare costs.

2013

By John M. Robertson

SUMMARY OF THE DOD FISCAL YEAR 2014 BUDGET PROPOSAL The FY 2014 budget builds on the Department of Defense’s reform agenda that began several years ago.

That agenda generated $150 billion in efficiencies in the five-year plan submitted with the FY 2012 budget and another $60 billion in efficiencies in the five-year plan submitted with the FY 2013 budget.

For 2014, savings of approximately $34 billion have been identified to make better use of resources across the five years of this Future Years Defense Plan. To permit infrastructure consolidation, the budget requests a round of Base Realignment and Closure (BRAC) in 2015. BRAC is the only effective means of achieving infrastructure consolidation. This BRAC round adds $2.4 billion to costs in the next five years but would eventually save substantial sums. The actual closing of any bases would involve a multiyear process that would not start until 2016, after the economy is projected to have more fully recovered.

In order to maintain balance and readiness, the budget also includes savings associated with additional weapons program terminations and restructuring ($9.9 billion), continuing efforts to capture more favorable medical cost growth recently experienced in both the Military Health System and national medical cost trends ($8.9 billion), and restructuring of military construction plans ($4.14 billion). By September, a

10 | JUNE2013

The department is also working to slow the growth in military compensation while continuing to support the All-Volunteer Force. The increase in military basic pay will be set at 1.0 percent in FY 2014, slightly lower than the 1.8 percent increase in the Employment Cost Index; the budget also provides service members with increases in their housing and subsistence allowances of 4.2 and 3.4 percent respectively. The department is also resubmitting some changes in military health care enrollment fees and pharmacy copays that were denied last year by the Congress, but after making modifications designed to accommodate concerns. Together these initiatives reduce costs by $1.4 billion in FY 2014 and a total of $12.8 billion in FY 2014-2018.

To make better use of America’s defense dollars, the department continues to pursue its commitment to effective financial management controls.

The overall objective is unchanged – to provide decision makers with accurate, reliable, and relevant financial information and to ensure that all DoD financial statements are audit-ready by the end of FY 2017, with budget statements audit-ready by the end of FY 2014.

Implementing and Deepening Program Alignment to the New Defense Strategy The FY 2014 budget will further implement the department’s new strategic guidance, “Sustaining U.S. Global Leadership: Priorities for 21st Century Defense,” which was published in January 2012. FY 2014 spending will continue the transition to a smaller, leaner force – one of the key goals of the new strategy. By the end of FY 2014, the department will have completed almost two-thirds of the planned reductions in end strength for ground forces. The department will also pursue retirements of ships and

CONSTRUCTION NEWS BULLETIN

aircraft, including resubmitting some proposals that were denied last year

by Congress.

The proposed budget provides funds to support key aspects of the initiative to rebalance posture and presence to emphasize the Asia/Pacific region and the Middle East. In the Asia-Pacific, funds are included for hardening of airfields, protection of critical strike capabilities such as bombers and F-22 squadrons, and developing Guam as a strategic hub. Funding is also requested to support strengthening and deepening partnerships in the Asia-Pacific.

The FY 2014 request supports investments in technology needed to meet future threats and to maintain a competitive edge. Funding will support continued development of three variants of the F-35 ($8.4 billion), new ship construction ($10.9 billion), missile defenses ($9.2 billion), and continued development of a new penetrating bomber ($379 million).

Other critical investments include cyberspace operations ($4.7 billion), space capabilities ($10.1 billion), and new technology in intelligence, surveillance, and reconnaissance assets ($2.5 billion). In response to threats from North Korea and Iran, the department is enhancing defense of the homeland against ballistic missiles by taking steps to increase the number of Ground Based Interceptors and upgrade the missile field at Fort Greely, Alaska.

The Fiscal Year 2014 Military Construction Budget The overall FY 2014 Budget Request is $526.6 Billion. Amounts included in the budget request for Military Construction in Guam and nearby islands are detailed below. No items were found for FY 2014 in Diego Garcia where there has been construction activity in recent years. All budgets are set forth in thousand dollar amounts.

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Appropriation Requested

Navy Joint Region Marianas Aircraft Maintenance Hangar - North Ramp BAMS Forward Operational & Maintenance Hangar Dehumidified Supply Storage Facility Emergent Repair Facility Expansion Modular Storage Magazines Sierra Wharf Improvements X-Ray Wharf Improvements Total Joint Region Marianas

85,673 61,702 17,170 35,8606 3,382 1,170 53,420 $318,377

Air Force Joint Region Marianas PAR - Fuel Sys Hardened Bldgs PAR - Strike Tactical Missile Mxs Facility PAR - Tanker GP Mx Hangar/AMU/Sqd Ops PRTC RED HORSE Airfield Operations Facility PRTC SF Fire Rescue & Emergency Mgt Total Joint Region Marianas **Guam Total

20,000 10,530 132,600 8,500 4,600 $176,230 $494,607

Kwajalein Army Kwajalein Atoll Pier Total Kwajalein Atoll **Kwajalein Total

63,000 63,000 $63,000

Northern Mariana Islands Air Force Saipan PAR - Airport POL/Bulk Storage AST PAR - Hazardous Cargo Pad PAR - Maintenance Facility Total Saipan **Northern Mariana Islands Total

18,500 8,000 2,800 $29,300 $29,300

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The foregoing does not include the budget request for military housing which is accounted for separately where detail is not provided. Furthermore, Japanese or Mamizu funding expected to be used in FY 2014 is not accounted for in the above figures.

The Guam construction industry can be expected to move at a much faster pace next year as compared to the past two years. This is welcome news for GCA members.

GCA TRADES ACADEMY With military construction spending expected to increase in the year ahead, now is a good time to begin investing in human capital. Well trained workers are in short supply on Guam as in some other places but are the key to successful project execution. The GCA Trades Academy was established in 2006 by the Guam Contractors Association for the purpose of training construction workers in a variety of skilled trades. Training is also available for preparing entry level workers for jobs in construction. This includes an introduction to basic safety, blueprint reading, carpentry, masonry and similar construction activity. Call Bert Johnston at 647-4842 or 647-4843 to learn more about the NCCER certified training programs available.

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JUNE2013 | 11

COMMITTEUPDATE

State/Component/Installation

The proposed DoD budgets are first submitted for action to the Senate Armed Services Committee (SASC) and House Armed Services Committee (HASC) for scrutiny and deliberation before being presented before the full House and full Senate. With sequestration still in effect, the outcome is uncertain. During the last two budget cycles, Guam has not faired well with the SASC. With Senator Jim Webb no longer in office and Senator John McCain out of the Republican leadership position, Guam should be able to expect more favorable consideration.

Importantly, projects proposed are not controversial since they need to be completed irrespective of where the Marine Corps base and their firing ranges are located.

CONSTRUCTIONHEADLINE

A Hidden Treasure In Agat Dave Macaluso A two hundred year old hidden treasure from our past, alongside a road in Agat was slowly losing its battle against time and nature. The Talaifak Bridge withstood numerous storms and flood water in its day, but in recent years, the bridge was in danger of collapsing. If this happened a piece of our history would have been lost forever.

On Modern day Guam, Drivers and passengers in vehicles, driving approximately 35 miles per hour on our busy roads may not be unaware that there could be century old forgotten treasures, hidden in the brush and jungles along side the road. One such treasure from our past is a small Spanish era bridge, the Talaifak Bridge, which lies about 30 yards away from the road in Agat.

This little two hundred year old bridge may not be able to withstand the weight of a modern day car, but during the time it was built it held great importance to the island community of yesteryear. Back in the 18th century, when Guam was still a Spanish Colony, this small bridge was heavily traveled by people either by foot, by carabao or on horse. And during that time the Talaifak Bridge, built in 1785, was a link from Umatac, the port in the south, to Hagatna which was the seat of government.

During that time the bridge was part of this dirt trail that was called El Camino Real or The Royal Road.

Originally this double arched bridge was built out of wood, but it was later rebuilt with sturdy stone in the mid 19th century. The bridge stood for nearly 228 years before it was in danger of collapsing due to water damage and erosion.

In order to preserve our history, this historical bridge needed to be restored.

Rex International, Inc. was the construction company that was named to do the work on the Talaifak Bridge Restoration Project.

Rex International worked closely with the Department of Public Works and the Guam Preservation Trust.

The goal for this project was to restore the bridge back to its old glory and to ensure that the bridge was preserved to be stronger and structurally sound. In addition, the restoration work included restoring a portion of the bridge that had previously fallen apart due to water damage and natural erosion. Boulders were also added around the shore line to break up the waves and water flow near the bridge.

Since erosion was a main cause of the original bridge from deteriorating, something needed to be done to protect the restored bridge for the future. Part of this project included diverting the water flow from the current modern day bridge away from the old historical bridge.

This was done by creating a large culvert next to the historic site which was intended to divert as much water from the bridge as possible, this will keep the flood waters away from the bridge protecting it from future erosion.

After all was said and down, this restoration project took over a year and had a price tag of $900,000 to preserve this bridge to the way it looked like in the early 19th century. This project was funded by the Federal Highway Administration and the Guam Preservation Trust.

12 | JUNE2013

Restoring a piece of history could be very expensive because authentic materials need to be used to maintain the integrity of the historical structure. During the restoration of the Talaifak Bridge, original and similar materials were used to repair structural components of the bridge.

CONSTRUCTION NEWS BULLETIN

Before the ribbon cutting ceremony that was held in late May (2013) to unveil the restored bridge, other cosmetic items needed to be addressed pertaining to the surrounding area where the bridge stands. The jungle growth surrounding the restored bridge needed to be cut back and the area now includes beautiful landscaping, seating, lighting, railing and a parking area to accommodate tour buses.

People can now easily see the historic bridge up close instead of just seeing it from afar from the side of the road.

The Talaifak Bridge is one of two double arched stone bridges from the Spanish era still standing in the Marianas in the 21st century.

The other bridge is located in Cella Bay. In addition to the Talaifak Bridge, there are several ongoing historical sites being restored around the island. The Plaza de España and the Merizo Bell Tower are currently being restored as part of an initiative to preserve the island's heritage. Our ancestors from the past will be proud of us for keeping Guam's history alive.

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Building

The Islands Workforce

by David F. Macaluso

Since 2006, GCA’s Trades Academy has been developing a strong and viable workforce on island. The academy offers the same quality of training and course curriculum that is being offered in the mainland which insures a local workforce that will hold the same credentials and certifications as the rest of the nation.

There’s always something new going on at GCA’s Trades Academy. The academy just recently signed an agreement on June 12, 2013 with Agbayani Construction Company (ACC) to establish a scholarship worth $10,000 for students studying HVAC (heating, ventilation and air conditioning) technology. These funds will help pay for tuition for first year students who are studying HVAC technologies at the academy. The General Manager of ACC, Mario Britton, came to the Trades Academy and made this generous offer on behalf of Agbayani Construction Company.

Dr. Bert Johnston, Director at the Guam Trades Academy adds, “This isn’t the first time we received generous donations from local businesses. In the past we also received funds for scholarships from Citi Bank, First Hawaiian and the island’s Rotary Clubs.”

The Trades Academy is always pushing and striving for new classes to help the local workforce. The academy has an open business architecture that allows them to expand or condense class sizes as needed.

Right now it has about 80-100 students per week at any given time. Their goal is to get between 120 - 200 students, a goal that has been achieved numerous times before. The number of students might be down slightly compared to the past, but that might be due to our economy and the delay to the potential military buildup.

Johnston said, “A few years ago, whenever anyone talked about the military buildup, it was always in a positive and prosperous way. During that time, the Trades Academy got a lot of attention and a large number of students enrolled in our classes. Now people are talking about the buildup not

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happening, there is a lack of interest in the construction industry and there has been a significant drop in our enrollment.”

Just recently, the Department of Defense (DoD) reported it will need more time to complete an Integrated Master Plan required to unlock certain military buildup construction funds and money needed for potential Guam civilian projects.

Last April (2012) DoD announced that it would revise its previous U.S. Marine Corps Realignment Plan, but according to a new U.S. Government Accountability report, the Pentagon did not completed two key planning initiatives. This includes the synchronization of various realignment steps with all geographic segments of the realignment and a construction support strategy.

According to the DoD report, officials estimated that it could take several years to produce an Integrated Master Plan and it may be completed after 2018. Now there may be an issue with funding this plan. Back in April 2006, realignment plans to move the U.S. Marines from Okinawa was estimated to cost $10.3 billion. The agreement between the United States and Japan had the Japanese government paying more than half the cost ($6.1 billion) for this move. But with these further delays, the revised plan, as of 2012, is expected to cost $12.1 billion for the relocation, now having the U.S. picking up $9 billion of that cost. But that price tag may rise since the U.S. Government Accountability now believes the completion of the relocation of Marines and their dependents might not occur until 2023.

The distribution plan will include moving the U.S. Marines from Okinawa to Guam, Hawaii, Australia, and possibly other locations which may also include Korea and the Philippines.

Although this plan might seem a long way off, the Trades Academy can help the island’s workforce prepare for the next construction boom. The construction industry is a viable occupation. It’s better to start your training now and be prepared to work when the work comes.

If the military build up doesn’t come for another 10 years, there's still a market out there, especially if there’s an increase with Guam's tourism market. With the possibility

of an influx of more tourists, there's going to be a need for additional infrastructure, maybe more hotels or recreational facilities and that’s going to require construction of these structures. A lot of hotels will probably be remodeling, adding on additional space to accommodate the new tourist.

“People have to realize that to become a skilled worker, it requires several things, part of it is getting the formal training and the other part is getting experience with on the job training. But the biggest investment is time,” said Johnston. “To get really good at something you need to do it for at least 10,000 hours, that’s close to 5 years. With 5 years of formal training combined with work experience, skilled workers will get into the jobs that are necessary to help the workforce.”

It is critical it is to be prepared for future opportunities. Johnston shares a conversation he had with an individual who has been a local skilled electrician for many years, but he lacked formal training.

Johnston said, “ I got a phone call the other day from an individual who I have been trying to get enrolled at our academy as a trained electrician. He recently applied for a job and the company was willing to hire him and asked him for his credentials, but he didn’t have any. So when he called me, he wanted to see how long it would take to get credentials. I plainly told him it would take 3-4 years. But the 3-4 years doesn’t start until you get into the training program. The guy was surprised and then quickly said he should have got his credentials years ago.”

There is a new programs that is slated to start at the academy, Electronics System Training (EST). This new program is being offered for the first time at the academy.

This program was in the works to start sooner, but it now appears the academy will have enough students who are interested in the class to get it started.

“We have been doing electrical training classes since the academy started in 2006 and it remains one of our most popular classes we have. But with EST, that class deals with the electronical components within the construction industry,” said Johnston. “Today in the modern world, everything has some kind of electronics within it which includes air conditioners.

Some air conditioners even have a mother

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JUNE2013 | 15

FEATURESTORY

Builders build Buildings, but the Guam Contractors Association (GCA) Trades Academy build trained and skilled workers, this is the basic philosophy that the academy started nearly seven years ago and it still holds true today.

FEATURESTORY

board built inside them which acts like a brain to help regulate the climate within a facility. The HVAC program we offer deals a little bit with the electronics, but it doesn’t cover extensive training in that field.”

Generally what the academy teaches in the EST program is how to troubleshoot a problem, how the motherboard functions and operates. After all options are exhausted, if the motherboard doesn’t work, it will be removed and a new one will be installed.

The EST program also trains and prepares individual how to troubleshoot the entire motherboard.

Some companies are showing great importance for their employees pursue certifications and to additional education for their trade. One great thing the academy has is an assessment program which can determine the knowledge and skill gaps for their employees.

Johnston adds, “This is important because the wrong time to find out if an employee can’t perform a job or doesn’t know how to do it, is when they are getting paid to do it.

GCA’s Trades Academy gives employees the opportunity to be assessed to find out ahead of time if they need additional training to do the job. The worse feeling in the world is being hired and expected to do a certain job and they find out that you can’t do it. We can help an employee continue to be educated in their fields.”

In addition, the academy also offers a project management supervisor course to help contractors in that area. This will make sure that supervisors are trained and are knowledgeable on how to manage skilled professionals. According to Johnston, people don’t usually leave a job because of the work flow, they will leave a job because of a boss or a supervisor. This course will enhance their supervisory management skills.

Back in September 2006, I first interviewed Johnston, while I was working as a TV journalist for a local news agency. At that time, he was very excited to get the Trades Academy off the ground. He was hired by GCA in June of 2006 to help launch the academy and its doors opened to students four months later in October. The opening coincided with the National Career in Construction Week. Every year when that week comes, it marks the Trades Academy’s

16 | JUNE2013

anniversary.

Thinking back, I recall that the interview was conducted in a conference room which also doubled as classroom for the Trades Academy, located in the GCA office at the East-West Business Center in Upper Tumon. The Trades Academy had a modest start only enrolling 6 students in their first month. During that time it was a huge milestone for the Guam Contractors Association to establish its own academy.

In 2006 the Trades Academy first developed a standardized and nationally recognized curricula for five key construction trades which included; electrical, welding, millwright, instrumentation and pipefitting. Later new curriculums for basic construction skills such as carpentry, electrical, HVAC and the Core Curriculum were added.

During the 2006 interview, Johnston mentioned that there were a lot of people who felt the Trades Academy was formed to compete against Guam Community College’s trade program. Johnston wanted to diffused that situation by saying the Trades Academy was not built to compete against GCC, but it was formed to complement each other. Johnston stressed that the island is too small to compete.

Now the Trades Academy has an Articulation Agreement with GCC. If there are students who are in electrical and HVAC programs at the academy, if desired, later on they can pursue an Associates Degree in that same field. The student will be allowed to use the classes from the academy towards that degree offered at GCC. The academy is also looking at expanding their apprenticeship program to get more people in it. That program is different compared to the classes they offer. It also involves working full time within a given trade.

The Trades Academy is different compared to most learning institutions on island. If a student doesn’t pass a class, they will be are allowed to come back and retake the course again. That's because the academy guarantees a student will pass and it is there to help all students succeed and the focus is on learning.

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“If a situation comes up when a student's work schedule changed, a student may need to work overtime at their job, if there’s a death in the family or for any reason student can’t come to class, they will be allowed to return. We are here to help the students gain the knowledge and training needed to become valuable in our workforce.

Johnston believes that the Trades Academy has some of the best instructors on island.

“Our instructors are not full time classroom only teachers, but instead they are electricians, carpenters, HVAC technicians, plumbers and carpenters who come to the academy after their full work schedule to share their knowledge with the students.

Our Instructors are people who are already working in the industry,” said Johnston.

“They know exactly what’s going on in the industry because they just came from that field. There’s a difference when you take a class and the instructor knows first hand the ins and outs of the business because they are doing it so often that its second nature to them. Plus the instructor takes pride in their work and what they are doing that they want to pass it on to the students.

When everyone walks out of the class they are 2 inches taller.”

The academy reaches out into the community with different types of venues to get people interested in the construction industry. They have the construction rodeo and pizza, pop and power tools program. Some people don’t know what they are interested in until they try it. Maybe programs like these will spark an interest and get people interested in this field.

Johnston continues the work of advocating the Trades Academy, not only on Guam, but also in the Northern Marianas Islands and the FSM. There is no doubt that GCA Trades Academy is developing a strong and viable workforce. Now and in the years to come, the academy will make people become skilled workers so they can become the middle class of the island. Any person who correctly and safely knows a trade is very valuable to its community.

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PHOTOHIGHLIGHTS

GCA Luncheon May 15th, 2013 Hilton Guam Resort & Spa

18 | JUNE2013

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PHOTOHIGHLIGHTS

18TH Annual Island Wide Saftey Conference

May 21-23, 2013 Holdiay Resort & Spa Guam

as part OSHA 3110 class on their field trip e erenc conf y safet for ing train of their

20 | JUNE2013

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NAWICNEWS

National Association of Women In Construction Awards dck pacific guam, LLC the Region #10 2013 SAFETY EXCELLENCE AWARD dck pacific guam, LLC was presented the 2013 Safety Excellence Award from the National Association of Women in Construction (NAWIC) Region 10 in Gilroy, CA. NAWIC's Safety & Health Region 10 Chairwoman Ann Marie Meno-Pelobello and NAWIC Guam President Bing Mejia offers this award to recognize safety as a corporate value and commitment to member companies who excel at safety performance, occupational

22 | JUNE2013

health management and risk control.

Region 10 consists of California, parts of Nevada, and Guam. dck pacific guam, LLC has been a corporate member of the Guam NAWIC Chapter #381 since the chapter was formed a year ago. The award was presented to Karen Storts, STS, dck pacific guam, LLC NAWIC representative.

The application submitted by dck pacific has also been forwarded to the national office to be included in the

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competition for the NAWIC National Safety & Excellence Award. "...dck pacific guam LLC is indeed privileged to receive this award. Many thanks to NAWIC Region 10 for recognizing the dck safety program, staff and craft efforts that went in to making this achievement possible." said Theron Holloway, Senior Vice President and General Manager of dck pacific guam, LLC.

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GARRISONREPORT

LEAN

CONSTRUCTION

Earlier this year, Garrison Report #2013-1 provided eight questions that contractors and designers should ask themselves regarding strategy. If you haven’t read that report, I strongly suggest you review it before reading this one. While many companies within the construction industry have adopted innovative approaches to their businesses, it is still true that virtually every contractor and designer could further improve its performance and profitability by putting to use the practices found in Construction 3.0™ Strategies. To assist in this effort, Garrison Reports #2013-3 through #2013-6 discuss each of the four critical practices that make up Construction 3.0™ Strategies. These four practices and their scheduled reports are as follows: • • • •

Blue Ocean Contracting (TGR #2013-3) Integrated Project Delivery (TGR #2013-4) Lean Construction (TGR #2013-5) Best-Value Procurement (TGR 2013-6)

Lean Construction Maybe the most misunderstood concept concerning Lean Construction is that it is not about doing things cheaper. It is about adding value for the client by doing things better through the elimination of waste.

Waste increases project durations and costs and often results in quality issues.

This is an important difference. Some are opposed to Lean Construction because they think it will cost jobs, but this is an unwarranted concern. Henry Ford found out that every time they increased efficiency, they needed to hire more people because the business grew.

24 | JUNE2013

In an interview, Glenn Ballard, cofounder of the Lean Construction Institute (LCI), said, “In Lean we are looking at fundamentally delivering value to customers, giving them exactly what they need, when they need it, within their constraints of cost and time with ever-decreasing waste.” Lean is different from many programs. While improved productivity is obviously an essential part of the effort, Ballard added that it’s also about safety, quality and meeting the customer’s needs. To listen to Ballard’s entire interview, go to www.youtube.com/watch?v=dJyCpuR9xck.

In the April 2013 issue of Harvard Business Review, Michael E. Raynor and Mumtaz Ahmed wrote an article entitled “Three Rules for Making a Company Truly Great.”

From their research, they concluded that the three rules to making a company truly great are as follows: 1. “Better before cheaper—in other words, compete on differentiators other than price.”

2. “Revenue before cost—that is, prioritize increasing revenue over reducing costs.”

3. “There are no other rules—so change anything you must to follow Rules 1 and 2.”

Lean Construction is totally consistent with those three rules. First, lean is about better, not cheaper. Second, when contractors are more efficient through lean practices, Ballard reported they consistently experienced a 15 to 20 percent reduction in costs plus other benefits for owners. If the construction industry would consistently reduce costs by 15 to 20 percent on every project, it would experience a significant upturn in the demand for

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its services.

Unfortunately, the conventional approaches to controlling construction costs are actually counterproductive and result in higher costs. Numerous studies from all around the world have found that the main reason that the construction industry hasn’t improved productivity for the past 50 years is a result of the practices that attempt to reduce the costs of each function of the industry in both design and construction. Edwards Deming argued in the 1950s that suboptimization was a bad practice and usually resulted in higher costs. Yet the construction industry still employs this practice. Lean practices provide a better approach, namely examining the entire system as a whole to improve system performance. The problem with focusing on individual subsystems is that a change to one subsystem may have a detrimental impact on the other subsystems greater than the savings achieved in one activity.

An example is reducing the design team’s fee to save money. This will usually result in lower-quality drawings. Poor drawings will result in additional construction costs that far outweigh the savings in the design team’s fee.

Of course, cost is always a factor in the value equation, but simply doing things cheaper doesn’t necessarily increase value for the client. Even the term value engineering (VE) has become a euphemism for cost cutting. However, a more accurate definition of VE is an organized approach to the identification and elimination of unnecessary costs. Unnecessary www.guamcontractors.org

Integrated Project Delivery, which was discussed in the previous report, is in total harmony with lean. IPD’s collaborative and holistic approach to design and construction eliminates a great deal of duplicated effort, which by definition is non–value added or waste. Many people recognize the benefit of eliminating this waste, but others don’t recognize the inconsistency of reducing value by substituting a cheaper product to lower the initial construction cost while at the same time causing an increase in operational, energy and maintenance costs. Worse, some contractors embrace the chaos created by waste as a means to generate change orders. This is a disservice to their clients.

Of course, some buyers believe they are forced to accept lower quality because they cannot afford anything else. Lowering quality to reduce construction costs but increase future operational costs doesn’t necessarily serve the client’s best interest.

Further, a lower cost product doesn’t mean that quality must suffer. Philip Crosby defined quality as “conformance to specifications.” A properly installed plastic laminate countertop may actually have a higher quality than an improperly installed granite countertop. While the granite top is more luxurious, it is not necessarily better quality. If the plastic laminate top satisfies all the specifications, then anything

beyond those specifications adds little or no value and could, therefore, be called waste.

Another misconception about Lean Construction is that it’s about the tools. In an NCS Radio interview, Greg Howell, cofounder and managing director of LCI, stated, “It is really important not to start with the tools. Rather start with the people and begin to develop the capability in the company to learn from what’s going on and to see differently to take those new actions.” To successfully implement Lean Construction into a company, it must be initiated from the top and implemented from the bottom. This means everyone must be involved in the process. Lean construction is more about creating a culture of eliminating waste than it is about tools. To listen to Howell’s entire interview go to www.jackstreet.com/jackstreet/WCON.How ell.cfm.

My colleague Ed Anderson of Lean Implementation Services of Florida expressed frustration in his observation that too many companies want to take a shortcut to implementing Lean Construction. They don’t want to invest in properly training their people and spending the necessary time to develop the skills. Then they complain Lean just doesn’t work. While there are certainly some low-hanging fruit, those benefits are not sustainable unless a Lean process is established. Lean Construction is journey, not a destination.

If a contractor wants to compete on value, then Lean Construction is a must. How can you tell a prospect that you deliver the best

value if your process is full of waste?

However, by better performing the construction process through Lean your company will generate a significant payback. One of my clients has reported a 30 percent reduction in labor costs. He further reports that while his competitors are laying people off, he is hiring and revenue is increasing. He is also moving into new geographical areas because he has proven methods to beating the competition.

Increasing the value for the client is better than trying to do things cheaper. Lean will allow you to grow your business instead of trying to cut costs by eliminating training and/or by paying people less. Both of those strategies are contrary to Lean and doing things better. Worse, they discourage qualified people from entering or remaining in the industry. Peter Drucker wrote, “The first sign of decline of an industry is loss of appeal to qualified, able, and ambitious people.” he good news is that history reveals that Lean practices improve morale and attract quality people. If the construction industry wants to increase profitability, increase the amount of work and deliver greater value to its clients, then it needs to turn its ship around.

Next month’s issue will focus on BestValue Procurement.

"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."

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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JUNE2013 | 25

GARRISONREPORT

cost is that which provides neither use, nor life, nor quality, nor appearance, nor customer features. VE and lean construction are kindred spirits because both are about removing unnecessary costs through the removal of waste that does not contribute value to the client.

MEMBERBENEFITS

Overuse Injuries stages and if left untreated longer can be harder to resolve.

Capsulititis is the inflammation of the joint. This is more commonly seen in the big toe and more commonly called a bunion. This is usually a localized throbbing pain experienced after prolonged working/standing. At times just taking oral anti-inflammatories and getting larger shoes helps. The big toe though is also the most common place to have a gout attack so it is best to see a doctor to rule out gout versus a bunion. Again surgery is the last option after conservative measures have been taken.

Dr. Noel Silan, DPM ABMSP Overuse injuries of the foot can be due to tendonitis, capsulitis, myalgia or plantar fasciitis. Prolonged standing, walking, heavy lifting, improper foot wear and or weight gain can all be causes of overuse injuries.

The most common form of tendonitis is posterior tibial tendonitis. This is most commonly associated with flatfeet, is hereditary can be exacerbated early on with improper shoewear and weight gain.

Pain is usually in medial ankle and can extend up to the midfoot right where the arch is located. With re-calcitrant cases custom orthotics or braces may help.

Surgery is the last option. Like most conditions these injuries can present in

Myalgia is the inflammation of the muscles of the foot. This can be between the long bones of the foot or it can even be a muscle that sits right behind the instep/arch. This again can be due to prolonged standing or walking. Custom orthotics and oral anti-inflammatories can resolve this and surgery is never an option.

Plantar fasciitis is the inflammation of a broad fibrous tissue on the bottom of the foot. It has been interchangeably used with terms such as heel spur, bursitis, or even confused for gout. It typically presents with early morning pain associated with the first step. The pain can be disabling causing patients to limp. This condition is not hereditary and can be seen in all foot types. Again the same things can exacerbate this condition. Treatment conservatively are

Guam Foot Clinic

cortisone injections, custom orthotics and NSAIDS. Again surgery is a last option.

Remember RICE whenever dealing with acute injuries. Rest, ice, compression and elevation. OTC antiinflammatories if non- allergic will also help. Never put warm water or massage an acute injury as this will only increase swelling and pain. It is best to see your primary care doctor to also get an x-ray to rule out any fractures after the RICE method and get a referral if necessary to see a specialist.

The only caveat for the above conditions is if the patient has diabetic neuropathy most of these overuse injuries may be overlooked. Also certain types of hereditary arthritis can mimic the above symptoms so it is best to see your primary care doctor if unsure whether this is an overuse injury or not.

Due to an interest in exercise and or demanding work schedules, overuse injuries are common. This can also occur in young multi-sport athletes where excessive training can result in injuries.

Express Med Pharmacy Bldg138 Kayen Chando St. Dededo, Guam 96929 • (671)633-3668 wk • (671)647-0027 fax Dr. Noel Silan DPM, ABMSP P.C.

D ia be t i c F o o t Prob l ems • Go u t • S por ts/W or k Related Injur ies • Skin Disea s es • Sur ger y

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MEMBERBENEFITS

Secure Your Families Dear GCA Member, When you become a company member of the Guam Contractors Association, you become an elite member that can avail of company employee benefits such as Group Life Insurance, Health Insurance and 401K options. These plans are designed to fit a company requirement whether you are a two-man group or a 200+ man group.

In reference to the Group Life Insurance program with Individual Assurance Company, we can offer businesses and their employee’s insurance options with affordable rates which will bring peace of mind to each and everyone of them knowing that should they pass away their families financial future will be protected.

We offer a payroll deduction option or as we like to say a convenience employee benefit which is an agreement between the company and us that payment will be deducted each payday for the amount due and sent to us at the end of the month.

Life Insurance is VERY important…..let me tell you a personal story. I want you to PLEASE take a look at all the dates. In 2008, my bachelor son who had been living in Houston Texas for almost 5 years called me up in October and told me that he wanted to come home after being away for that long. Of course I was happy because being a mother I wanted him home.

He arrived on Guam on December 8, 2008 (Immaculate Concepcion Day) and spend the holidays with us. Three 28 | JUNE2013

months later on March 28th 2009 on a beautiful Saturday morning during the Lenten season he passed away. I was talking to him at 9:00 that morning, and one hour later he was dead. We buried him during holy week on April 7, 2009 which just happened to be the birthday of his grandfather, my husband’s father.

On his one year anniversary which is March 28th 2010, it just happened to be Palm Sunday the beginning of holy week. All the elders in my family told me that I need to take a look at all the dates and see the significance of them and believe that GOD brought my son home to spend the three months with me and my husband and then called him home. My granddaughter Jasemine who now resides in Las Vegas, saw all that this was doing to me and one night she pulled me aside and said, “Mama, GOD had a very important job opening and he needed the best one for the job which is why he called my Nino Elmer John home.” At times when we adults are to preoccupied with everything else, the young and innocent shines a light on all that is important and must never be forgotten. I was the one who found him in his room and that is the hardest thing a mother will ever have to go through. I begged with every beat of my heart, I cried, I even got angry because I just got him home, and being in sales, I even tried to negotiate with GOD, but the golden rule is YOU never negotiate with GOD. When he calls you home, there is no waiting period, you just go.

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Even with life insurance and a funeral plan, my family and I spend close to $18,000.00 for all the funeral arrangements which I thank GOD we were financially able to. If a family does not have any type of life insurance when a provider passes away this event can really create a huge financial burden for the family. Life insurance is also one of the best guaranteed estate building gift that you can give to your family. My mission from GOD I believe or let me say “I know” is to tell my story and to help families prepare for the security of their financial future for generations to come.

Providing these benefits for your employees will bring them peace of mind for their family and create a loyalty and stability for their jobs ensuring a powerful and productive morale.

Remember the future is what YOU make of life today, expect the best of what life has to offer YOU and your business. Life Insurance isn’t for the people who die, it’s for the people who live.

Secure your families financial future for generations to come.

Best Regards, Patty Lizama President, Pacific Isla Life 30 Years in the Insurance Industry 671.472.1555

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