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Guam Contractors’ Association


Vol.51 Issue 05 MAY2010


Feature Stories: WATTS Constructors Safety





P resident’s Message C ommitte Update: S.A.M.E.


C ompany Milestones C onstruction Headline:


C onstruction Headline:


F eature Story:

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Feature Story



WATTS Constuctors

C rane Critque Corner P hoto Highlights C ompany Profile T echED S mall Business G arrison Report N ew Members

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Feature Story


Hafa Adai! GCA Members: This month begins a new fiscal year for GCA and also a new term for our association leadership. We have some new faces on our GCA Board of Directors this year as well as some past familiar faces. I would like to first congratulate all our elected board members and executive board members Chit Bathan, Ace Builders who serves as chairwoman, Bill Beery, Construction Management as vice chairman, Bob Salas, Landscape Management Systems (LMS) as Secretary/Treasurer, Tom Perez, Perez Bros, Inc. as immediate past chairman. Our elected contractor member directors include Tom Nielsen, Maeda Pacific Corporation, Josh Tenorio, Core Tech International, Ana Lisa Reed, LA Painting and Construction, Armando Acosta, Orion Construction, Narci Dimoala, Amazon Construction and alternate director Ron Young, Parker Bros. Construction. Our associate member directors consist of Edward Untalan, First Hawaiian Bank, Michelle Quidachay, Horizon Lines, Adam Baron, Cassidy’s Associated Insurers and Vince Davis, Hawthorne Cat. The new GCA Board shall assume their role on May 1st and officially sworn in to office during the May General Membership Luncheon meeting. The U.S. Department of Labor Wage and Hour Division will be hosting a “Prevailing Wage Conference” in Guam on May 17-20, 2010. In order to attend this FREE conference, members are asked to email their names, titles, company, email and phone numbers to . You will receive confirmation on your registration as well as pertinent details regarding this conference. I believe on the Monday, May 17th, there will be a presentation on the Davis-Bacon wage survey that will be conducted for Guam some time this summer. I strongly urge our GCA members to attend this conference and ask questions especially on the Davis-Bacon and related acts as we have not used this wage determination before and are now mandated under the Defense Authorization Act for 2010 and more than likely, future appropriations for military construction projects in Guam.

Guam buildup it remains a top priority with GCA. Working in collaboration with OSHA Region 9, OSHA On-Site Consultation, Naval Facilities Engineering Command Marianas Safety and GCA Safety Professionals, this year’s event will offer several tracks for OSHA Outreach training including 10-Hour Outreach for Construction, 10-Hour Outreach for General Industry and 30-Hour Outreach for Construction. New to this year’s lineup is the 8-Hour Competent Person training for Scaffolding, Fall Protection and Excavation. The 8-hour Competent Person training was designed to meet the minimum specification and requirement for a competent person in these areas. There will also be an overview of the program management for the Army Corps of Engineer’s EM385-1-1 standards. GCA has been for the last year and a half, designated by NAVFAC Marianas to provide the 40-Hour Construction Safety Workshop for Contractors (EM385-1-1) and this course will give an overview of the contract requirements for Site Safety and Health Officers (SSHO). Be on the lookout for email and advertising of the event and sign up your employees ASAP. The weekend immediately following the Annual Safety Conference is another event that GCA embraces in the month of May and that is the American Cancer Society’s Annual Relay for Life fundraising event. GCA members get together for the Relay for Life to help raise funds in the fight against cancer. In past events, over 15 GCA member companies participate under the GCA banner. Some of these companies have now graduated to organizing their own activities and have their own sponsor tents at the event. Members interested in participating under GCA can contact Ann Marie Pelobello at 647-4840 for more information. Senseramente, James A. Martinez

Also during the month of May, GCA holds its Annual Island wide Safety Conference. This year marks our 15th year of organizing this event. Safety has always been paramount in our industry and with the impending 4 | MAY2010


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 Parket Brothers. 647-8113 or 777-8101. One more thing…Its FREE for GCA members to use, heck, Bob will deliver it to you.

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 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 Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.


EDITOR: Adztech


CONTRIBUTING WRITERS: Jac Perry - Guzman John Robertson Ed C. Cruz Ted Garrison Marc Mendiola

AD SALES: Marc Mendiola CREATIVE DIRECTOR: Christopher Estioca GRAPHIC ARTIST: Geri Leon Guerrero Christopher “Taco” Rowland PHOTOGRAPHERS: Christopher “Taco” Rowland Marc Mendiola

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GCA STAFF: Ann Marie Pelobello Chantel Torres-Cruz Francine Arceo COVER: WATTS Constructors Safety Team


A College of Engineering at the University of Guam The guest speaker at the April meeting of SAME Guam Post was Dr. Shahram Khosrowpanah Ph.D. P.E. who is Professor of Water Resources Engineering at the Water and Environmental Research Institute of the Western Pacific at the University of Guam. He provided an overview of planning for establishing a four-year accredited engineering degree program at the University. Dr Khosrowpanah is currently directing the ongoing pre-engineering program while leading the initiative in this exciting development for the Territory of Guam. This is welcome news for NAVFAC Marianas, the 36th Civil Engineering Squadron, Guam agencies that require such professional personnel and local engineering firms and contractors. The demand for a College of Engineering is already present but the argument for proceeding now is made more compelling because of increased demand that will come as a result of the military buildup. This development on Guam will make a College of Engineering sustainable for the years ahead.

non-technical fields at UoG. Many students who leave the island to obtain a technical education take jobs in the mainland, rather than return to Guam.

The need for having an Engineering School

The two year program established in 1989 parallels the engineering programs at major colleges and universities in Hawaii and the mainland. After completing the required pre-engineering coursework, students transfer to other universities that offer degrees in engineering curricula of their choice in order to complete their degree requirements.

President Robert Underwood in a presentation on October 29, 2009 expressed his vision for establishing a 4-year accredited engineering degree program to help meet the current and growing demand for engineering expertise in Guam’s private and public sectors. UoG now prepares professionals in education, nursing and health sciences, business and public administration. With Completion the exception of Building 200 Nearing mathematics and computer science, the University has yet to expand into the technical fields, most importantly engineering. There is a lack of adequate engineering staff across Government of Guam agencies. Future need for engineers will increase as many senior engineers will be retiring. Positions for engineers in government agencies and the private sector are mostly filled by engineers on temporary contracts, who leave the island when their projects or contracts finish. Local students are forced to leave the island to pursue an engineering education, if they are financially able to do so. Otherwise, they take degrees in mathematics or other

The rapid economic and population growth accompanying the military build-up in our community will produce an acute need for engineering talent to support new construction, repair and rehabilitation of aging infrastructure, development of natural resources, and environmental protection and preservation. A mature engineering program at the UoG will attract students from Asia that aspire to study and graduate from an American institution of higher learning. The program will attract military dependants and some students from the mainland that would prefer living in a friendly tropical environment while attending an accredited college.

Pre-Engineering at the University of Guam

the two year program already in place. It will also take advantage of basic courses such as English, Math and Science that are already in place although there will be more focused courses added in Math and Science as required by engineers. In addition to the existing collaboration with the University of Iowa, talks are under way with the University of Hawaii (Manoa Campus) for a similar arrangement.

There are Challenges Ahead Engineering Faculty: There can be no program without an excellent faculty. The plan is to use faculty members seconded from the affiliated universities in Iowa and Hawaii to start. A faculty of seven or eight members will be required for a limited program. In time, the College of Engineering at UoG will become self sufficient. College of Engineering Facilities: A site for the Engineering Building has been selected and it is west of University Drive beyond the existing parking area and opposite the College of Natural and Applied Sciences Building. A preliminary plan has been prepared and the cost is expected to about $3.0 Mil. Furniture, fixtures and equipment will add another Âą$900,000.

Accreditation: ABET (Accreditation Board for Engineering and Technology) accredits academic programs at universities and colleges preparing graduates for entry into professional disciplines of applied science, engineering, and technology. ABET standards In July 2008, the University of Guam and cover the curriculum of the program, the University of Iowa established a general Office Typical Executive Furnishings qualifications of the faculty and the physical cooperation agreement to enhance the resources of the program to include items relationship between the two institutions and such as classroom space and laboratories. The in order to better facilitate the educational program must have graduates prior to/or experience for Guam students. during the academic year of ABET team visitation. Where do we go from here? Planning is underway to transition from the The Next Step current two year Pre-Engineering Program to The next step in the process of turning this a four year accredited engineering degree ambitious plan into reality is to build necesprogram. The initial focus is on Civil Engineersary facilities, engage the services of an ing and Environmental Engineering as having engineering faculty, develop the curricula and the greatest demand in our community. work with other universities with ABET Additional disciplines can be added as the accreditation for the initial establishment. need arises but after the two initial programs are firmly established. This extension of engineering studies will take advantage of

To join SAME Guam Post, logon to and proceed to New Membership. 08 MAY2010





Morrico Equipment Celebrates

“The owners of Morrico and Trashco Guam, Allan Morrison, Ross Morrison and Torgun Smith are very proud of the 20 year milestone. We have some of the hardest working staff on Guam and we are all looking forward to the future on Guam.” Allan Morrison, Company Founder & President Morrico Equipment Corporation (now LLC), Guam, was founded by Allan Morrison in September of 1990. Morrico carved a market niche for overnight delivery of heavy equipment parts. As the company grew, Morrico established good customer rapport through new and used equipment sales, including bulldozers, loaders, graders, dump trucks, three axle tractors, and cranes. In 1992, Morrico Equipment´s heavy equipment sales, service and spare parts facility commenced trading on Guam. Morrico garnered exclusive equipment dealerships including Stihl Power Equipment, Flextool Construction Equipment and Martin Machinery Diesel Generator Systems. Morrico Equipment Corporation entered the Guam Trash disposal business, dba Trashco Guam, with three RollOff Trucks and sixty roll off containers.

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In 1993, Morrico was granted the regional dealership rights for Yale Material Handling, Drexel Forklifts and as the Shell diesel and lube distributor. Morrico now operates four diesel tanker trucks for on-site diesel fuel delivery service to standby generators and construction customers on Guam. In November of 1995, Morrico Equipment Corporation was awarded a five year US Military Defense Commissary preventative maintenance contract for 54 forklifts. Throughout the nineties, various reputable equipment manufacturers visited Morrico on Guam with requests for Morrico to represent their brands. The manufacturers include Hyster and Yale Forklifts, Freightliner Trucks, Hyundai Construction Equipment, Mercedes and Detroit Engines, JLG Material Handling Equipment, New Holland Tractors, Backhoes, Skid Steer Loaders, Deutz Engines, Kohler and Kubota Generators,


Rosenbauer and American La France Fire Trucks, MedicMaster Ambulances, Thomas Built Buses and Bomag Construction Equipment. In 2007, Morrico expanded its Heavy Equipment Rental Fleet to more than 70 units of heavy equipment and trucks. All of Morrico´s rental equipment are dealership line items with spare parts and authorized dealer service capability immediately available. Morrico owns 8024 sq ft of covered workshop area located in central Guam with an adjoining 16,000 square feet of open area and parking. Future sales growth for Morrico has been identified in lease fleet sales, service and spare parts for heavy equipment, trucks, generators and forklifts in the Micronesia region.



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Basic EEO compliance U.S. EPA to finalize designation of includes the following: ocean disposal site off Guam, seeks public comment HONOLULU – The U.S. Environmental Protection Agency is seeking comments on the proposed designation of an ocean site for placing clean dredged material offshore of Guam. Guam currently has no ocean disposal site, and all sediments from Port, Navy, or other dredging projects must be disposed on land where capacity is limited. Designation of the Guam Deep Ocean Disposal Site provides an additional option for managing dredged sediments. “Guam will have a complete toolbox for managing sediment from dredging projects,” said Nancy Woo, Associate Director of water programs for EPA’s Pacific Southwest region. “We expect dredgers to find beneficial ways to reuse sediment whenever they can, but that isn’t always possible. A properly designed ocean disposal site is a good option when rigorous environmental criteria are met.”

EPA’s final Environmental Impact Statement presents a detailed evaluation of impacts and alternatives for designation of an ocean disposal site. The environmentally preferred location is approximately 11 nautical miles northwest of outer Apra Harbor, and in water depths ranging from 8,200 and 9,055 feet. There would be a maximum annual disposal limit of 1,000,000 cubic yards of dredged material for the site.

rapher in EPA’s Dredging Team. “Sediments from each project must first pass strict testing standards, and even then they must show that there are no better uses for the sediment at that time.” Copies of Proposed Rule and supporting documents may be viewed at EPA’s w e b s i t e ging/index.html or Guam’s public libraries.

The final EIS was revised after public comments were received on the draft EIS last October. With release of the proposed rule for site designation, EPA is now asking for additional public comments. The ocean disposal site would not be available until the rulemaking process is complete.

For further information and to submit comments, please contact: Mr. Allan Ota, U.S. Environmental Protection Agency, Region 9, Dredging and Sediment Management Team (WTR-8), 75 Hawthorne Street, San Francisco, California 94105-3901, Telephone: (415) 972-3476 or FAX: (415) 947-3537 or E-mail: “It is important for people to understand that having an ocean disposal site available does not allow people to just start using it,” said Allan Ota, an oceanog-


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7” ½ x 4” 7/8.


WATTS Constructors has earned several prestigious awards including: 2010 Associated General Contractors of America – Construction Safety Excellence – 1st Place Heavy Division 300,000 – 700,000 man hours

WATTS Constructors Safety. Service. Teamwork. Trust. WATTS Constructors is a company with a positive attitude and its workplace culture places high value on safety, service, teamwork and trust. In 1993, WATTS began as a small woman-owned business operating primarily as a subcontractor in the San Francisco Bay Area. WATTS Constructors is now a full service general and engineering contractor with projects spanning the Pacific Northwest, Midwest, Hawaii and Guam. In 2006, a merger with Iowa-based The Weitz Company, a national construction conglomerate, greatly increased capacity and resources at WATTS, explained John Sage, Vice President/General Manager – Micronesia Operations and Thomas Reilling, Regional Safety Manager – Micronesia. Today, the WATTS portfolio includes design-build military projects, historical renovations, airport renovations, marine waterfront construction, underground utilities, seismic upgrades, National Park improvements and military housing. Its primary customers are the U.S. Government which includes the U.S. military (U.S. Army Corps of Engineers and the U.S. Department of the Navy), the U.S. Department of Interior and the National Park Service. The company’s offices are located in Hawaii, Guam, California, Colorado and Washington. With safety at the forefront of concerns, WATTS Constructors proudly worked 2.5 million 18 | MAY2010

man-hours over the past 3.5 years without a lost-time incident. One of the most important reasons for the success of WATTS programs is that safety is not an external part of the business, ingrained into the culture and a heavily weighted factor in the company’s business strategies. Currently, its programs include mandatory OSHA 10-hour training for all superintendents and mandatory OSHA 30-hour follow up training. WATTS has also implemented a safety incentive program; a drug and alcohol testing program; safety orientation for new hires and supervisors; 100% hardhats and safety glasses policy; daily pre-task planning; and Activity Hazard Analysis reviews. This company is committed to doing everything possible to provide a safe and healthy environment for its employees, while providing quality construction services to our customers. The WATTS safety program is not driven by compliance alone – it is their culture and beliefs in doing what is right. Safety isn’t just their policy – it is a commitment. Some of WATTS most well-known projects include the largest price tag for a military housing project on Guam, the largest completed Guam Naval Project and building the first Energy Star certified homes on Guam.


2009 National Safety Council – Million Work Hours Award for Replace Typhoon Damaged Homes, North Tipalao, Guam 2010 National Safety Council – Regional Safety Award over 500,000 man-hours without Lost Time Accident 2009 National Safety Council – Two Million Hours without Lost Time Accident 2009 Association of Builders and Contractors – National Safety Excellence Award 2009 National Safety Council – Industry Leader Award 2009 Department of the Army – Award for Safety Excellence - Honolulu District 2009 National Safety Council – Occupational Excellence Achievement Award 2009 GCA Best in Category – Zero Incident Rate, Building 247,999 to 110,000, GCA of Hawaii 2009 GCA Best in Category – Zero Incident Rate, Heavy / Industrial 425,000 & Up, GCA of Hawaii 2009 ABC – Step Award for Safety Training and Evaluation 2009 National Park Service – Two Million Hours without Lost Time Accident 2009 Department of the Navy – Exceptional Site Safety Assessment for Construct Communication Center at Pearl Harbor


WATTS Constructors takes the issue of safety and health on the job seriously. The safety program at WATTS is not merely a manual of policies and procedures that sits on a shelf; rather, it is a culture of excellence that starts at the top and permeates throughout the entire WATTS organization. For Denny WATTS, president and CEO, the goal is zero accidents and injuries and, without exception, he insists on every manager’s commitment and every employee’s involvement in the safety process. To emphasize this point, WATTS’ written policy states, “Prevention of an occupationally induced injury or illness will be given precedence over operating productivity.” The company places high value on the partnering relationships it enjoys with Guam Contractors Association (GCA), the Occupational Safety Health Administration (OSHA) and Naval Facilities Engineering Command (NAVFAC). The members of these organizations function as solicitors of the WATTS Safety Process and keep the management team

informed of legal requirements and regulations, and current on codes and statutes. It is the intent of WATTS to comply with all applicable laws. As a heavy engineering general contractor, WATTS’ work-mix is a combination of both public and private contracts. Its work sites range from downtown urban settings to remote military locations to our country’s national parks and historical treasures. In every case, WATTS adheres to all applicable standards as well as OSHA standards and military safety standards found in the U.S. Army Corps of Engineers Safety Manual EM 385-1-1. From a practical standpoint, this policy allows WATTS to use all of their employees on any of their job sites, private or public. From a philosophical standpoint, this policy ensures that WATTS’ employees and subcontractors are protected within the company’s worldclass safety culture. The employees’ cooperation in detecting and controlling hazards is a condition of employment at WATTS, and no reprisal of punitive action is ever taken against an employee for providing a hazard notice to company management; instead, a critical eye is encouraged. Because the majority of its contracts are with the federal government, all of WATTS’ safety personnel attend

NAVFAC’s Construction Safety Hazard Awareness Course for Contractors. As far as safety training or continuing education for its Site Safety and Health Officers, the company attempts to avail of them of any safety training that is available in Guam. Since there is a limited resource for this training in Guam for safety personnel, WATTS employs its more experienced personnel as mentors and trainers of our junior personnel. Since there are no local college programs available on Guam for Safety and Health, this encourages its employees to further their education using distance education. All new employees at WATTS Constructors receive a new hire orientation. In this orientation, personnel are trained on basic safety requirements covered by OSHA and EM 385-1-1. All management personnel are required to complete OSHA 10-hour and 30-hour training. Throughout the life of every project, personnel and subcontractors are trained on the site. They are also trained on and prior to any definable feature of work that is being performed. WATTS’ Site Safety personnel also, on a regular basis, take members of its field personnel and walk the site with them pointing out safety concerns and have them participate by pointing out any items of concern.


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WATTS Currently has worked 2.5 Million man-hours without a lost time incident. On Guam, their Replace Typhoon Damage Homes project achieved 1.7 Million man-hours without a lost time incident; this includes WATTS Constructors in Guam as well as their subcontractor and vendor personnel for this particular project. In the event of an incident, WATTS’ first priority is the well being of its employees. When an individual is injured, all Site Safety and a number of our project management and field personnel have been trained in First Aid and CPR. If an employee requires more medical attention than on-site first aid, he/she will be escorted to a partnered medical facility by either the designated site safety personnel or his/her supervisor.

seasoned safety professional. WATTS generally look for personnel who may have some construction experience, although that is not a requirement set in stone. They are looking for personnel with a good attitude and who wants to be a member of a winning team! WATTS Constructors currently employs 15 Safety Department personnel worldwide. There is one currently assigned specifically for Guam operations. WATTS Constructors has been a member of the GCA for 5 years – since its inception in Guam.

All safety and supervisory personnel are trained on procedures of escorting personnel to designated medical facility. Located at each of WATTS’ projects is what they call ‘Grab and Go Kits’. Each Grab and Go Kit contains a detailed step-by-step procedure for handling the incident and treating the injured personnel; the appropriate Workers Compensation Commission forms; and, company Incident Report forms which are required to complete an investigation. Finally, WATTS Constructors implements a Return to Work (light duty) Policy for its employees. Once the well-being of our employee is assured, then the Site Safety and Project management team conducts and investigates the incident to determine root cause. When seeking to employ new members of our safety team – Site Safety and Health Officers, WATTS Constructors requires two different criteria. The first criteria is to seek personnel who meet the requirements of the Unified Facilities Guide Specification requirements for any current contract they are seeking Site Safety and Health Officers for. The second criterion is to find personnel who are new to the safety profession that can be mentored and developed into a 20 | MAY2010



Hoist Block Spin This month’s topic:

What What causes causes itit and and how how to to prevent prevent it. it.

A monthly crane and rigging informative column for all personnel directly or indirectly involved with crane safety. Each month we will attempt to explain a different technical issue pertaining to crane operations here on Guam, addressing the sometimes overlooked or misunderstood topics by management and operators alike, by Dave Barnhouse Since cranes were first used, one problem has been prevalent during multi-part line lifts – rotation of the hoist block. This is called block spin or cabling, the point at which the block spins to entangle the hoist line. A formula exists that will predict the length at which cabling will occur but for the most part here on Guam if and when it will happen is discovered when it actually occurs. This can be at best inconvenient but otherwise may have disastrous results. If a block spins uncontrollably after a load is lifted to a point where it would be impossible to lower the load to the ground by booming down, it may present quite a problem to lower the load as once the cable is tightly wound the load weight may not be sufficient to overcome the cable friction. If spinning the load is possible and the block spins with the hook and load, this may alleviate the problem long enough to complete the lift. If an attempt is made to hoist up or down while the hoist line is twisted, severe damage or parting of the wire rope may result. If cabling persists and is uncontrollable, a temporary fix is to lock the hook with the block allowing control of block spinning by controlling the load. This is not advisable as a permanent cure as the block hook must be free to swivel. Another fix 22 | MAY2010

that usually alleviates the problem is to disconnect the dead end and allow the wire to untwist a number of times, run the hoist the full length as possible and repeat if necessary. What causes block spin is the characteristics of the cable design. With 6 x 19 IWRC wire for example, the outer stands and the core strands are laid in the same direction. Thus, whenever a load is applied, both the rope and the core tend to unlay in the same direction. Rotation resistant wire rope tends to twist much less but is not usually used on multi-part lines for a couple of reasons.

Some steps to prevent or reduce cabling: 1) Ensure wire rope is installed on the drumcorrectly. 2) Use short as possible wire rope lengths, keep boom length to a minimum. 3) Use IWRC wire only, Fiber Core wire ropes have a higher torque factor than IWRC. 4) Eliminate odd-part reeving, even number of parts aremore stable than odd. 5) Increase the spread between the wire rope falls. Dead end the wire rope away from the falls if possible.

This month’s test quiz addresses rigging issues:

1) What is the load angle factor on a bridle sling with 30° sling to horizontal angle? 2) What is the normal angle of choke of a choker hitch and what percent capacity of a sling is a choker rated? I will attempt to test your knowledge of crane operations each month in this column with a few questions relating to one of the mentionedtopics. These questions will address the weak areas more frequently noted during my classroom operator training and/or the more common discrepancies noted during crane inspections. If your company or subs utilizes cranes whether as owner or renter I invite you to look for this column each month and test your knowledge.



Answers to last month’s test quiz: #1) 5 Most Common Discrepancies

structural repairs performed since last inspection must be made available during an annual inspection. Also, if the crane will be on Military installations and comply with EM-385-1-1 there must be a daily updated log book with record of operating hours, repairs, etc. and signed by the operator.

Following are 5 of the more common overlooked discrepancies found during mobile crane inspections here on Guam and a few notes on each item. 1) Wire rope terminations. The hoist line termination at a becket is the weakest link in the wire rope and if the termination method is not done properly this connection becomes much weaker than the wire rope itself. It is imperative that the load line is not crimped with a wire rope clip, the wire rope is not installed in the becket backwards, the wedge is free to float in the becket and not mushroomed, is inspected regularly for wire

#2) Who and what dictates what are deficienciesand how can they be abated? What are the requirements for a crane to be ‘certified’, is it necessary, and who can issue a certification?

Wire spooled loosely and promoting cable abrasion and/or crushing.

damage and re-socketed if needed. Wire in becket backwards and clamped with wire rope clip improperly. 2)Loose wire rope spooling on drum. This is the number one reason for premature rope failure on mobile cranes and more prevalent on the smaller boom trucks with small diameter drums and light hook blocks. A sudden change in rope tension will cause the rope to slacken and can either loosen the wraps or cause cross-wrapping. The operator must learn to keep the wire rope taut by feathering the controls and checking drum condition if a slack condition occurs before lifting or rope crushing will result.

3)Anti-two-block device not functioning. This safety device is more critical with hydraulic telescopic booms compared to lattice booms and required by both EM 385-1-1 and the latest edition of ANSI B30.5. Current OSHArequirements for A-2-Bs are only when lifting personnel. Lattice boom cranes with manually operated friction brakes may use A-2-B warning devices in lieu of prevention devices. Cranes used for duty cycle operations are exempt from this requirement. 4) Main or auxiliary hook block capacity or actual weight is not marked or known. These are required by both OSHA and ANSI. Actual weight of the block must be known because the operator must include this with the load calculations. The capacity must be marked as hook blocks are interchangeable and the block being used may be well below the capacity of the crane. 5) Lack of monthly, daily, and periodic inspection records. Each crane must have on board at all times: The current annual inspection record and daily inspection checklist, required by OSHA 1926.550, and the current monthly wire rope inspection record, required by ANSI B30.5. Wire rope certificates and any

This has long been an issue with crane ownerseverywhere. A deficiency may be described as any faulty, damaged, inadequate, unsatisfactory, or defective item, function, or assembly on the crane. A qualified person, defined as a person with extensive knowledge through training and experience and has the ability to solve/resolve problems relating to the subject matter, must determine if the deficiency constitutes a safety hazard. If it is determined that it is not presently a safety hazard, the deficiency must be monitored during monthly inspections. Of course if the deficiency is recognized as a safety hazard it must be abated by qualified personnel before the equipment is placed back into service. What are the requirements for a crane to be ‘certified’? There are no requirements for crane ‘certification’ in Guam such as issued in California or a number of other states. However, an annual examination of all cranes is required by OSHA. A certification of examination is merely a confirmation that the crane has been examined and/or tested as per the applicable standard. As per Fed OSHA this must be accomplished by a qualified person for a construction crane. For a crane used in longshoring activitiesthe qualified person must be accredited by OSHA as per 29 CFR Part 1919. It has been widely recognized though that should an unfortunate event finds its way to the courts, a third party inspection carries a lot of weight. Some crane liablity insurance policies mandates third party inspections.


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Unviersal Life Agency Inc. If you are in a partnership or private company you must know that funds will be available to either buy your shares or to buy your partners shares in the event of something happening to either one of you. As a company perhaps you need to protect your business following the death of a Keyman.

Life Insurance is the most important form of financial protection available and can mean the difference between security for your family and financial hardship. The amount it pays you is your choice but should be designed to match all your financial commitments such as mortgages, loans, etc. and your family’s living expenses.

Universal Life Agency, Inc. was incorporated in 2007 and opened for business in 2008. It is the General Agent for Prudential Insurance of America on Guam. ULA wanted to bring back “The Rock” to Guam offering Prudential products to businesses and residents whether US or foreign. ULA is able to provide high net worth clients with suitable limits and partnerships and businesses with the coverage they need.

The company has been growing steadily particularly since 4th quarter of 2009. The company’s mission statement is to “To Provide the People and Business Community of Guam with best Financial Protection available.” ULA look forward to the day when they are the largest life agency on Guam, creating new jobs as a result. They value their ability “to keep their promises and to behave with integrity whilst placing their customers and their customer’s needs at the forefront.” Universal Life Agency Inc. is located in Hagatna in the GCIC Bldg. Suite 701. For more information contact May Ordonez at 671-475-8888 or email at


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// Author Bio // Ed C. Cruz has worked in the IT Industry for over 10 years. He has a bachelor’s degree in Information Technology and holds many technical certifications such as Microsoft Certified Systems Administrator, Microsoft Certified Professional, and Security+ to name a few. He is a lifelong learner, spending much of his free time conducting research on living efficiently.

Dear TechEd, I travel most of the time, e.g. business trips, conferences, and trade shows, and need to always connect back with the office. We currently use Skype to keep in touch, but it lacks in the collaboration department. Any suggestions? -- On the go Skype certainly does a great job in making the connection back to the office, from anywhere, through the internet. With a simple and painless download and install, you can be up and running in a few minutes. Usage of Skype has gone from 74 plus million users in 2005, to over 521 million users last year. Most features are free and those that come at a cost allow you to pay-as-you-go or to pay monthly. Keeping in touch for business or pleasure is made easy and simple with Skype! Online collaboration can go from wikis, charts, shared calendars and spreadsheets, workflows, or social tools to name a few. Other popular forms of collaboration come in the form of desktop sharing, conferencing and control, common with standard webinars. (A webinar is short for web-based seminar, presentation, lecture, workshop transmitted over the web) In a past article, I touched on a few collaboration suites, such as Google Apps and Zoho, which should give you many options. There are literally hundreds of collaboration applications out there, most of them free! Search and find your perfect tool with your favorite search engine.

Popular desktop collaboration applications today are Webex and GotoMeeting. These applications offer great solutions for telecommuting (working away from the office) and for holding meetings with multiple people or clients. I have successfully used both on many occasions attending various meetings or webinars. They are both great applications that are almost identical in every way. I use these tools primarily for support as they both offer desktop sharing and control. My most recent support consisted of me helping a friend figure out a formula with Excel. Through desktop sharing and control, I was able to see what was going on and assist as if I were physically there. Free trials for both are available for a limited time. Other alternative applications to the two mentioned above are Adobe’s Acrobat Connect Now, Yugma, and DimDim. Again, service offerings are similar, if not identical, to its competitors. I have used Adobe and DimDim and find them just as easy to operate and use. I personally use Adobe because it’s free to use forever! Adobe Acrobat Connect Now gives you 1 online workspace, and up to 3 web conference capacity with limited support. That means you can essentially collaborate with a single workspace with up to three connections. For those that require more than this must upgrade at a reasonable cost. One feature that may interest you in Yugma, is that it offers Skype integration. Have all the function with Skype AND desktop collaboration! This has certainly caught my attention

and I plan to test drive it real soon, most likely on my next business trip. I have used DimDim in the past and it offers that same as all of its competitors. My advice? Try them all! See what features stand out and learn how to collaborate efficiently and effectively. Drop me a line and let me know what solution or combination of solutions you have decided on. I would be interested in knowing what you have learned about this process and what features you found important. Keep in touch!

TechEd would like to hear from you! Have a question relating to technology? Have an interesting story to tell? Need some help or advice? Send an email to Your question may just get published! I look forward to hearing from all of you.


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SBA & GCA First Annual Combined Mixer “I’m so thankful to be a part of the Guam Contractors Association as our company has truly benefited. A perfect example of this benefit is the most recent after hours mixer that also was combined with the Guam Chamber of Commerce. New contacts were found and new relationships created. Thanks, GCA and Chamber for the combined mixer.” GCA Small Business Committee Chair Joe Roberto - North & East Island Tinting

“Cars Plus was a great location to have the mixer. A relaxed and comfortable atmosphere made it enjoyable to mix with others there. I plan to attend the next one . Hopefully it won’t be too long before that happens!” Irene Hicks, President - America's Best ElectricMart Inc.

“This was a very successful event coordinated by the Small Business Committees of the Guam Chamber of Commerce and the Guam Contractors Association. This joint after hour mixer provided a networking opportunity for small business members from both organizations to talk with the larger companies in a social setting. This was a first of a kind event between the two organizations and certainly not the last. Kudos to the Small Business Committees of both organizations for putting on a great event. Thank you to Joey, Joyce and Jen of CarsPlus for providing your showroom for this wonderful networking event and to all the sponsors for making this a great success.” James A. Martinez , President - Guam Contractors Association 28 | MAY2010

"This was the first time we've had a chance to visit in a social situation with the new off-island prime contractors that many of us will be subcontracting with, so we really appreciated that opportunity. The mixer was well-attended, the food was great, and thanks to Joey and his staff for their gracious hospitality." Rita Miller, CEO - SET Pacific

“ We have just navigated uncharted territory by having a joint event with GCA and Guam Chamber. It took the newly formed Small Business Committee of GCA and existing Small Business Committee of the Chamber to bridge the efforts of the two different organizations. Congratulations to all that made this great endeavor work!!! ONE TEAM – NO SEAM!!!” Michael Ady, President - M80 Systems Inc.

“ This event was awesome and am glad to have attended it. I‘ve heard from at least three other attendees the day after and get the same comment: “excellent all around.” Please pass these comments to event planners and others who helped make it happen. Keep up the great work! “ Mark Calvo, Manager Guam Programs - L-3 Services, Inc.

‘It was great to see both memberships come together in friendship and collaboration. Our organizations share a common sense of responsibility towards our island’s many challenges. We now need to work together more than ever in sharing our capabilities, as we work to provide greater economic opportunities for our businesses and our community. David Leddy, President - Guam Chamber of Commerce

"With myself and Fastenal being new to Guam I am looking for any opportunity to meet and talk with new people. Events like the GCA/GCC mixer are excellent opportunities that I enjoy attending.” Dustin Reiman, General Manager -Fastenal


“The networking possibility at the mixer was fantastic. I met people from both large and small companies. And for a new, small business, these contacts are important.” Grace Donaldson - Solutions: Human Resources Management & Recruiter


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.

To Register, call Paris/Tiffany at (671) 647-2010/2011

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: SECURITY... Because it’s Everyone’s Business! Friday, May 21 8:30am - 10:30am Facilitated by Frank Crisostomo-Kaahue BASIC LABOR LAWS/PRACTICES & UPDATES Friday, May 21 8:30am - 10:30am Presented by Grace Donaldson, Solutions: Human Resources Management & Recruiter Registration Information Chamber Member Admission: $10.00/person Non-member Admission: $20.00 Tel: 472-6311/8001• Fax: 472-6202 Email:

The Winning Solution for ALL your Professional Needs • • • • • • •

Professional Development Courses: First Level Leadership Fundamentals of Human Resources Successful Interviewing, Techniques for Hiring Introduction to Underwriting Dealing with Difficult People Public Speaking Introduction to Business Writing Technology Courses: Word, Excel, Powerpoint, Access For more information, call 735-2600-2 or email or visit

UNIVERSITY OF GUAM Professional & International Programs


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“SAFETY FIRST! BE PROACTIVE !” 10hr OSHA Construction Outreach 10hr OSHA General Outreach 30-Hour Construction Outreach Training plus Competent Person Training Competent Person Requirement Training *Excavation* Scaffolding *Fall Protection

Contact GCA office at 647-4840 or email: You may also visit our website and download registration form at:

Increased The primary role of management is ensuring maximum productivity from all its resources. This is achieved through effective leadership by properly aligning all resources, including labor, capital, knowledge and equipment.

Unfortunately, too often people are promoted into supervisor or management positions because they know how to perform “the work.” The problem is required knowledge is more than simply “how to do the work.”

Prior to 1875, poor performance was blamed on the worker, but Frederick Taylor learned that work could be managed with a resulting increase in productivity. He explained the way to improve results was to “work smarter.” He also concluded that productivity was the responsibility of not the worker, but the manager. While he never included it in one of his formal theories, he recognized that knowledge was a critical capital resource.

Peter Drucker wrote, “Knowledge must be able to be applied to all resources: capital, key physical resources, time and knowledge itself.” It requires the know-how to judge other people’s abilities so the right people can best be assigned or aligned to the required work. The effective manager needs an understanding of the big picture because without this insight, it is virtually impossible to establish the right priorities. While knowing how to do the work is helpful, if the individual doesn’t know how to coach or instruct others in how they can improve their performance, this knowledge is useless to the person who needs the help. In other words, the manager’s required knowledge goes beyond how to perform the tasks.

The Garrison Report: Effective Leadership explained that leadership is about perception and alignment, not control. It also argued that knowledge is a critical aspect to someone’s ability to perceive. Therefore, it’s essential that managers are well informed and have the necessary knowledge to perform their responsibilities.

Since the economic well-beings of both the company and its employees are dependent on the company’s productivity, the managers can’t be allowed to fend for themselves. Instead companies need to invest in educating their supervisors and managers. Yes, educating, not training. Training is what you do to teach someone a skill, but to develop the depth of knowledge required to effectively perform the role of manager, namely perception; managers must be educated with the information necessary for them to understand impacts of various factors on the performance of their teams. Today’s managers need to understand the importance of innovation, the constant need to shift from obsolete or declining methodologies to new and more productive ones, even when the necessary changes threaten their comfort zone. Of even more concern is the idea that some of

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their subordinates might actually have good ideas to change things that would improve productivity. In essence, this idea of constant improvement is the underlying concept of lean construction and Construction 3.0™. If you don’t think the construction industry needs change, consider it’s the only significant industry that hasn’t increased productivity since 1960. Other nonagricultural industries have averaged doubling their productivity during the same period. The industry’s approach to supervision and management is a major contributing factor. In part, the problem is an issue in mindset. The industry invests a large amount of time and money on technical training, but often courses that would truly improve supervisor or management performance are overlooked except for individuals at the highest levels of the organizations. Too many forepersons are promoted simply because they are the best technicians. Without the necessary information, how can we expect forepersons to perform properly? Their source of knowledge is usually someone else promoted the same way, who also lacks the necessary information to perform adequately. In many companies the situation is even worse because the same procedure is applied to superintendents and project managers. The reason it’s worse is because these individual have substantial responsibility and can have a major impact on a project’s performance and productivity. Many clients have placed tremendous pressure on contractors to reduce project overhead because they believe it will reduce costs. Unfortunately, they are misinformed; it actually increases costs. When there are no positions between foreperson and superintendent, it should be obvious there is gap in the necessary knowledge of the individual when he or she is promoted from foreperson to superintendent. The costs related to this lack of knowledge are greater than the cost of an assistant superintendent. Not only does the assistant superintendent perform valuable functions on the project, but the position allows the individual to gain the necessary background information to perform as an effective superintendent.

When companies hire college graduates and immediately install them as project managers, they do everyone a disservice. The author has a B.S. in civil engineering, but he also knows how stupid he was when he first walked on the job. Fortunately, he had several important mentors who allowed him to grow into the necessary responsibilities of being a project manager. While today’s college graduates from engineering and construction management programs are very knowledgeable with regard to the technical skills of the job, they still lack critical knowledge to perform properly. No one has ever learned how to build a building by reading a book; one must do it. Again the investment in properly developing a company’s project managers will handsomely reward both the contractor and the client. The recession offers a lesson that proves the above claim. One CEO the author interviewed told him that his company’s

volume is down, but its profits are up. When asked how, the CEO explained that since they had less work, he assigned more management people to the projects. The result was that costs came down significantly more than the cost of the additional people. This proves that many of the so-called overhead personnel who have been removed from projects actually had important tasks to perform. The result is less efficiency and greater waste or mistakes. Tom DeMarco in his book Slack helps explain why this occurs. He points out that middle management’s roles include dealing with change and problems. Superintendents and project managers as well as their assistants are all middle managers. To deal with change and problems requires knowledge and time to think. However, when the staff is reduced to a minimal number, no one has that time, which results in poorer perception and results. DeMarco explained the myth of total efficiency. He

found that companies that increased efficiency to high levels actually had a decline in productivity. Jim Collins wrote that he learned in writing Good to Great that most successful companies are realistic about conditions. It’s time the construction industry embraced Construction 3.0™ concepts and become realistic about what has caused its failure to increase productivity for a half century. The industry can’t afford to do anything else.

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 For further information see his web page at

Guam’s Leader in Occupational & Environmental Safety Equipment & Supplies J.V. International Safety Equipment Co. Suite A-2 TSAI Building, 199 South Marine Corps Drive P.O. Box 8679, Tamuning, Guam 96911 Tel: (671) 646-9524/40 Fax: (671)649-3888


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MAY 2010 Contractor: Allied Pacific Environmental Consulting (APEC) P.O. Box 5091 Agana, Guam 96932 GCA Contact: C. Thomas Polevich Email: Ph: (671) 477-7310 Fax: (671) 477-7311 Description: Environmental Consulting Conti Electric, Inc. 3965 W. Post Rd. Las Vegas, NV 89118 GCA Contact: Matthew Snyder, Vice-President Email: Ph: (702) 222-1200 Fax: (702) 222-1205 Description: Electrical Contractor D.S. Guam Co. LTD P.O. Box 8414 Tamuning, GU 96931 GCA Contact: Hyo Keun Kang, President Ben Malinski, General Manager Email: Ph: (671) 647-8088 Description: Mechanical & Plumbing Jay Corporation P.O. Box 9345 Tamuning, GU 96931 GCA Contact: Jay Kim, President Email: Ph: (671) 646-5516 Fax: (671) 646-5517 Description: General Contractor RYK Construction P.O. Box 9488 Tamuning, GU 96931 GCA Contact: Steven Kim Email: Ph: (671) 797-6789 Fax: (671) 646-3888 Description: General Contractor

Associate: Contract Furniture Group, LLC. R.K. Tropical Plaza Suite 105 Tamuning, GU 96913 GCA Contact: Paul Tuncap Email: Ph: (671) 635-4326 Fax: (671) 635-4327 Description: Retail and Contract Furniture Sales Desertwealth International Services Corporation 507 Gen. Malvar St., Corner Mabini, Malate. Manila, Philippines 1004 GCA Contact: Nancy Madamba Email: Ph: (632) 5216152 Fax: (632) 5268171 Description: Recruitment

36 | MAY2010

Global Environmental Network, Inc. P.O. Box 8068 Fountain Valley, CA 92728 GCA Contact: James Wright Email: jwright@my-dube.c Ph: (714) 981-6838 Fax: (714) 479-0809 Description: Environmental & Health and Safety Training Guam Paint Factory Pacific Rim Paint and Supply 655 Harmon Loop Rd. Ste 110 Dededo, GU 96929 GCA Contact: Joy Clark ; Michelle Atoigue Email: ; Ph: (671) 647-6470 Fax: (671) 647-6471 Description: Paint Sales

Description: General Building Contractor & Real Estate Developer Tyco Fire Suppression & Building Products – Grinnell Mechanical Products 28 Anana Rancho Santa Margarita, CA 92688 GCA Contact: Susanne Messmer, Territory Manager Email: Ph: (714) 651-8461 Fax: (949) 713-4532 Description: Manufacturer – Grooved Mechanical Joint Fittings, Cplugs & Valves.

JM International, Inc. G/F & 2/F 4803 Sampaguita St., Marimar Village South Superhighway, Paranaque City, 1712 Philippines GCA Contact: Mercy Ferrer or Jess Ferrer Email: ; Ph: (632) 823-0609 Fax: (632) 823-0627 Description: Overseas Recruitment Agency Krona International Service Systems, Inc. G/F SMS Annex Bldg. 213 Sen. Gil Puyat Ave. Makati City 1235, Philippines GCA Contact: Elsa Villa, Vice-President Email: Ph: (632) 817-2470 Fax: (632) 8178010 Description: Manpower Supply / Recruitment Agency Mabuhay Personnel & Management Services, Inc. 9564 Jaime St. Airport Village Baltao Paranaque City, Philippines GCA Contact: Edwina Beech Email: Ph: (632) 851-0511 Fax: (632) 853-7630 Description: Manpower & Service Provider Mardel International Management & Services, Inc. 634 Quirino Ave. Tambo Paranaque Metro Manila, Philippines 1701 GCA Contact: Epifania Boyle Email: Ph: (632) 852-6249 Fax: (632) 852-5501 Description: Human Resources Realeza Development Corporation Suite-O EDT Bldg. Session Road Baguio City, Philippines 2600 GCA Contact: Engr. Mario R. Alzona Jr. Email: ; Ph: (63-74) 446-3223 Fax: (63-74) 446-3223


GCA Construction News Bulletin May 2010  
GCA Construction News Bulletin May 2010  

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