GCA Construction News Bulletin October 2023

VOL. 64 ISSUE 10 OCTOBER 2023 • GUAM CONTRACTORSʼ ASSOCIATION

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TABLE OF CONTENTS

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2023 8

14

S.A.M.E. UPDATE

10 APPRENTICESHIP CORNER 12 MEMBER BENEFITS 14 FEATURE STORY 18 FEATURE STORY 20 PHOTO HIGHLIGHTS 28 REPORTS/ INFORMATION

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WOULD YOU LIKE TO SEE SOMETHING COVERED? HAVE A STORY IDEA? LET US KNOW! email taco@adztechguam.com 2

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EDITORIALS

THEDIRECTORS

THEEDITORIALS

THETEAM

PRESIDENT James Martinez Guam Contractors’ Association

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.

PUBLISHER: James Martinez

PAST CHAIRMAN Bill Beery Tutujan Hill Group CHAIRMAN Joe Roberto East Island Tinting

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 or Adztech of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, production team, staff, GCA members, GCA Board of Directors and advertisers.

VICE CHAIRMAN Matthew Hunter Dylan Mechanical Construction Services SECRETARY/TREASURER Kathleen David Pacific Rim Constructors CONTRACTOR DIRECTORS: Don McCann Black Construction Corporation

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.

William Best SmithBridge Guam AJ Perez Hawaiian Rock Products

Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 506 Mariner Ave., Barrigada, Guam 96913

Brian Holm Hensel Phelps Soraya Vongjalorn Vertex 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

ASSOCIATE DIRECTORS: Mark Cruz Mid Pac Far East Jose Garcia First Hawaiian Bank

Postmaster. Send address changes to Guam Contractors’ Association, located at 506 Mariner Ave., Barrigada, Guam 96913

Camilo Lorenzo Matson Navigation Geri Leon Guerrero Adztech Advertising and PR

PRODUCTION TEAM LEAD: Geri Leon Guerrero AD SALES: Alyssa Roces PRODUCTION: Alyssa Roces Jason Davis Christopher “Taco” Rowland PHOTOGRAPHY: Alyssa Roces Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: Joanna Rupley Sablan Rodney “RJ” Ricarte R.D. Gibson Mike Cassidy GCA STAFF: Desiree Lizama Elaine Gogue Francine Taitague Trevor Cruz COVER: Despite plumbing being an integral part of our infrastructure, Guam has a shortage of skilled plumbers.

JOIN ONE OF OUR MANY COMMITTEES!

GCA

TRADES ACADEMY B u i l d i n g

S k i l l s

F o r

A

L i f e t i m e

Guam Contractors Association

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Car accidents could happen anytime in our lives if we are not careful on the roads.

PUT YOUR PHONE DOWN WHILE DRIVING. DISTRACTIONS WON’T GET YOU THERE.

CHAIRMAN’S LETTER

CHAIRMAN’S LETTER

Hafa adai GCA Membership!

Here’s a quote for you, “if you missed a little, you missed a lot”.

From your GCA/Chamber mixer at AK which was a HUGE success with close to 200 persons in attendance, great job Small Business Committee! AND, the very next day, your 2nd Golf FUN-raiser, outstanding stuff Activities Committee! All the while planning for the Lt. Governor’s presentation, great job Membership Committee!

This past month’s luncheon, Lt. Governor Tenorio gave an incredible insight of where we’re at “today”. The Public Health rep. at DPW One Stop, AG’s issues, DPW Director overriding authority over SHPO, Over regulations or just more bureaucracy, procurement purgatory, upscaling technologies, workforce housing, endangered species, wetlands, septic tank options, cell service fragility, self-certification, bike lanes, 800 million dollar hospital, buy America waivers and so much more! And, before ALL those activities, your two-day Safety Conference was an incredible and a must at the highest of priorities.

Then we move forward towards the record breaking 29th Annual GCA Family Day picnic at Ypao Beach. Thousands, upon thousands of attendees enjoying the “Calm before the storm”. It turned out to be one of Paradise Guam’s most beautiful Sunday. The smiles, laughter, sun, the fun and of course the occasional drizzle was an absolute blessing from above. Along with ALL the participating members and super sponsors! To all our sponsors we stand and salute your continued contributions and support.

Lastly, the day of this letter was due, we’re all preparing for a Typhoon while your GCA team of talent continues its duties and looks forward to a glorious holiday season. Please, when you see any of your GCA teammates, pat them on the back as they are truly awesome “players” in your fabulous team.

May God continue to bless each and everyone of you, your families and organizations.

Best wishes, Joe Roberto GCA Chairman

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S.A.M.E. UPDATE

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APPRENTICESHIP CORNER

APPRENTICESHIP CORNER

By Francine Taitague Safety, Training and Education Coordinator, Guam Contractors Association

ARE YOU DOIN’ IT ALL WRONG? Traditional methods of recruiting a workforce often face various challenges that can be addressed by creating and growing an apprenticeship program.

And these recruitment methods may not always provide the skilled and committed workforce that construction companies need. Here are some ways that you might be recruiting and why that approach may not be working for you.

H2s, foreign labor? Temporary … NOT a long term solution (we all know this).

Job Postings? This method may (or may NOT) attract applicants with varying levels of experience, making it challenging to find candidates with the specific skills required for construction roles.

Direct Hiring? It can be difficult to gauge a candidate's actual construction skills solely through interviews, leading to mismatches in skill levels.

Employee Referrals? This approach may lead to a lack of diversity in the workforce and overlook qualified candidates outside the current employee network.

Online Job Portals? This method can result in a flood of applications, making it time-consuming to sift through resumes and identify suitable candidates.

Recruitment Agencies? Agencies may prioritize their fees over finding the right fit for your company, potentially leading to suboptimal hires.

Job Fairs? Job fairs may not attract candidates with the specific skills or interest in construction, resulting in a high volume of unqualified applicants.

Poaching from Competitors? Poaching employees can create negative industry dynamics and may not be a sustainable approach to workforce development.

Creating and growing an apprenticeship program offers a more effective and sustainable approach to building a skilled workforce tailored to your company's requirements.

The Guam Contractors Association keeps track of hours worked and the education progress of the apprentice. We can guide your company through the process. What have you got to lose?

Join the growing community of companies that have, or are in the process of, creating an apprenticeship program to enhance the skills of its workforce.

Interested in learning more? I can help you!

Please contact me at (671) 647-4841 or francine.taitague@guamcontractors.org.

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MEMBER BENEFITS

GCA Employee Health Insurance Open Enrollment Begins

By Rodney “RJ” Ricarte

The Guam Contractors Association Employee Health Insurance open season enrollment is beginning.

The TakeCare team works everyday to make enrollment simple and easy for GCA members.

How can you enroll your employees for the GCA Health Insurance?

The GCA Open Enrollment Dinana is scheduled for October 20 from 11:30am to 1:30pm at Rhiga hotel (formerly Sheraton). During the open enrollment event, we will be giving the member companies benefit booklets and proposals, and we will also be highlighting the different benefits TakeCare offers its GCA Members.

Open enrollment will begin on October 20 and will close November 20. During the open enrollment period, GCA companies may submit the necessary document to sign up and or renew their insurance. This is also the opportunity to make changes to plans or have the employee make any revisions to their insurance plan.

The TakeCare Advantage for your employees With TakeCare, GCA member employees have access to an extensive list of participating providers, both on and off island. TakeCare’s network of contracted providers in Guam include Guam Memorial Hospital, Guam Regional Medical City, Guam SDA Clinic, Dr. Shieh, IHP, and AMC; in Saipan; and in Philippines, Thailand, Singapore, and New Zealand. Plus an expanded network of medical specialist, practitioners and facilities in the Continental U.S. and Hawaii through the MultiPlan network, which has more than 1.2 million providers.

Preferred Access to the FHP Health Center GCA employees have preferred access to the FHP Health Center. FHP features a roster of highly trained, credentialed, well-known and respected community-based physicians and professional staff. In addition, the center’s modern technology and equipment, supports medical services and expertise for its patients at exceptional Centers of Care. These centers include: Urgent Care, Full Service Radiology (MRI, CT Scan, Digital Mammography, Ultrasound, and X-Ray - Certified by the American College of Radiology), Primary Care (Pediatrics, Adult Medicine, and Women's Health), Occupational Health, Home Health and Hospice, a Cancer Center (Hematology/Oncology), as well as Dental and Vision Centers. In addition, FHP offers a convenient in-house full-service pharmacy, owned and operated by MegaDrug, and full service laboratory owned and operated by Diagnostic Laboratory Services (DLS).

Thank you for your continued confidence in TakeCare. If you have any questions about open enrollment or the GCA employee health insurance, please contact me.

Rodney “RJ” Ricarte is the TakeCare account executive for GCA. He can be contacted at (671) 487-7121 or rodney.ricarte@takecareasia.com.

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PLUMBING S E R V I C E S By: R.D. Gibson

FEATURE STORY

Besides the obvious reasons, plumbing has such an integral role in our daily lives if you think about it. The ways in which waste and water travels in a building is just something that does not take up too much space in our minds.

Then the leak in your kitchen sink creates a dissonant rhythm in the middle of the night, or it sounds like a rushing stream from the toilet, or the drains don’t drain the way they’re supposed to be draining. It can be as simple as a clog, or as stressful - relatively speaking - as fixture or pipe reinstallation or repair. No matter the issue, it requires the expertise and know-how of professional plumbers; the folks who find toy dolls, underwear, towels, and sometimes diapers snaking pipes; the folks whose work can seem ‘hidden’ within the walls and floors of buildings, but could have a lasting effect on pocketbooks.

Sanitation, safety, and health become part of the conversation when we look at their work.

Their job is not just to fix leaky faucets and clogged toilets, but also toward a community’s sustainable health. According to the Centers for Disease Control, 1.7 billion people across the globe do not have access to basic sanitation, which consists of facilities for safe disposal of human waste and maintenance of hygienic conditions, like wastewater treatment and disposal. “Sanitation and hygiene are critical to health, survival, and development,” the CDC website states. And plumbers have a hand in how wastewater moves.

Sometimes, it is interesting to see signs like ‘Toilet paper only’ or ‘Please do not flush product X, Y, Z’. It can lead to some pretty interesting conversations and maybe a few laughs about personal past plumbing problems, but it could also lead to people recommending their plumbers for a potential job opportunity.

According to Jessica Barrett, President of Barrett Plumbing, “There is an abundance of work to go around and keep plumbers on the island busy.”

John Politi of Plumbing Pros shared, “Plumbing is a fundamental aspect of every residential, commercial, and institutional facebook.com/GuamContractors

structure, making it an in-demand profession.”

He added, “Unfortunately, there is a shortage of highly skilled plumbers on Guam, leading to delays in addressing plumbing needs for the local community.” Politi pointed to a lack of a continuing educational component to plumbing on Guam. “The significance of skill development in the plumbing industry cannot be overstated,” he began. “It's essential to bear in mind that these tradespeople are entrusted with addressing and resolving plumbing issues in people's homes, which necessitates a high level of expertise.” He shared how it is important to start conversations about careers throughout the trades with students in high school.”

Barrett echoed Politi’s point of focusing on the island’s high school students “and instill the mindset and work on showing them the immediate and long term benefits that trades work offers them.” Additionally, she shared how the workers in the industry are ‘the best recruiters’, especially when loved ones become curious about the industry and the work.

She added that GCA has worked to develop a plumbing class. Plumbing course information is available on the GCA Trades Academy Website.

She also shared how their Apprenticeship Program is in the process of being revamped.

For Barrett and Politi, a lot of the same issues that plague plumbing are those for other industries, as well; namely shortage of skilled workers and material supply and prices. At the same time, as long as there are toilets, sinks, and pipes to be fixed or installed, plumbing will always have a place in communities. And there will always be a need for the men and women who wade in the waters of commercial buildings and residences. However, in an article on NPR, it discussed how younger generations are not seeking positions in the trades.

As Politi stated earlier, careers in the trades should be talked about earlier. Just recently the GCA Trades Academy certified 21 Guam Department of Educationstudents in level completion for the core curriculum, construction craft laborer, and construction site safety orientation according to their

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FEATURE STORY

website.

Barrett stated that her knowledge of the trade was shared by her father, “then it was a book and school of hard knocks and mistakes.” She continued, “today with all that is at a key stroke (sic), the resources are out there, you just need to take that and add to your knowledge base”. She added how she is learning every day with all the information that is available.

Part of that includes keeping up-to-date on new trends and innovations in the industry. Barrett and Politi pointed to a handful. Barrett shared how pipe lining, which she says will help with buildings with aged cast iron drain waste vent sewer lines. Politi shared how there has been a lot of advancement in the industry innovations, which include leak detection systems, trenchless pipe replacements, smart fixtures, and water filtration.

Additionally, he pointed to the enforcement of backflow prevention and testing by the Guam Waterworks Authority, which he said, “plays a crucial role in safeguarding our water source against cross-contamination.” Backflow prevention is important if there is cross-connection between drinking water pipes and other plumbing fixtures.

If this cross-connection is not properly protected, there could be contamination when backflow occurs, “allowing contaminates to reverse flow from the fixture/equipment back into the drinking water piping,” according to WSSCwater.com.

In a world where we can do with a lot less stress and frustration, sometimes being proactive about plumbing at your home or business can ease that stress. Barrett and Politi shared a few things residents and businesses might be able to do to safeguard against unforeseen, high labor costs and emergencies. Sometimes it is a matter of simply not dumping grease in kitchen drains, replacing hoses every few years, shutting off the water valve supply when traveling to prevent potential water issues while away, or even just knowing where the emergency control valve is.

it can be really frustrating and worrisome.

Sometimes customers are at their wits end and having someone swoop in to help in any way possible is all a worried customer needs.

Barrett pointed to “Hearing the relief in their [customers’] voice and the gratitude they have for my team and our staff when we solve their issues,” is one of the best parts of the job.

Politi added “Helping customers with their plumbing issues and making them truly happy with the out come (sic) of our work always puts a smile on my face.” He added, “Take care of all your customers as you would your own family.”

In essence, sometimes the contractors who are hired to help mitigate issues, be it plumbing or other, become part of our extended families. Oftentimes, they are a text message away, and always make it a point to do their best work and help provide innovative, long-term solutions for their clients. Politi shared how customers also prefer lasting fixes rather than frequent visits. Barrett noted, “We do not want to keep coming back to customers and servicing their line…not because we want to charge them for our equipment, it is because we want them to use their dollar to focus on addressing the issue once and for all instead of just paying for multiple visits to service their drain line.” She added, “Customers just need to ensure they are working with someone knowledgeable, trustworthy, and fair.”

Barrett shared how though the job may be a moving target, their eyes are always on the target. That moving target might have something to do with whatever goes in the toilet. So maybe next time if there’s a sign that reads not to flush certain items, it might make all the difference not to.

When asked what the best part of their job is, Barrett and Politi both agreed it was helping their customers. Anyone who has had plumbing issues can understand how, depending on the issue,

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“East Island Tinting made it easy for me when I needed some tint for Meskla, my restaurant. On top of the options that they gave me, they were fast, friendly, informative, and the quality of their work is excellent! The best part is that they guarantee their work! It was a pleasure doing business with them.”

Peter Duenas Owner

East Hagåtña 477-TINT (8468) / 472-TINT eastislandtinting@guam.net

FEATURE STORY

How the Defense Base Act Affects Your Insurance Program By: Mike Cassidy

In 1941 Congress enacted the Defense Base Act (DBA).

The purpose of the act was to provide medical and disability benefits to US contractors who were injured while working outside of the continental US, particularly for the US military.

Prior to the act, military contractors who were injured or disabled were not able to receive compensation for injuries they sustained while working overseas. Their local state workers compensation benefits would not extend to these employees as they were working outside the US. At this time, the US had just entered WWII and in order to maximize America’s war efforts, the US Government came to the realization that it would need the use of non-military personnel to assist with the war effort and build-up of military bases.

The use of non-military personnel continued after the war and continues today, whereby a significant majority of military construction is done with non-military or civilian contractors.

In order to provide benefits to those working outside the Continental US, Congress enacted the Defense Base Act and subsequently expanded the definition of who can qualify for benefits. The act enumerated benefits that injured workers were entitled to. Employers mitigated 18

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their exposure via the purchase of a DBA policy.

The DBA applied to contractors doing work on Guam from WWII until May of 1982. During Governor Paul Calvo’s administration, a blanket waiver of DBA Benefits to Guam was approved by the Federal Government (Office of OWCP) for all “Public Works” projects on Guam. This meant that the DBA no longer applied to Guam and that an injured worker on Guam would seek remedy for injuries via local workers compensation statutes. Employers no longer needed a separate DBA policy and instead covered injuries to their workers through a traditional Guam workers compensation policy.

This waiver continued for 38 years until May of 2020 when the OWCP issued a new waiver essentially revoking the 1982 waiver. The result is that the DBA now applies to Guam.

This means that an injured employee now qualifies for DBA benefits. DBA benefits are substantially higher than Guam workers compensation benefits and are typically NOT provided under a Guam workers compensation policy. Coverage is generally provided through the purchase of a separate DBA policy.

Now that we understand that the DBA applies to Guam, the big question is who qualifies for DBA benefits?

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FEATURE STORY

Simply put, the DBA applies to 1) Employees working on a US military base and 2) an employee working on a Federal “Public Works” project outside the continental US. These contracts are NOT limited to construction work and include Service Contracts.

According to the Department of Labor (DOL) website, the DBA applies: • To all employees, not just US citizens.

• To foreign employers employing only third country nationals.

• The prime contractor and every subcontractor.

• Regardless of the length of a contract- whether a few days, a month, or longer- once an employee steps on base, benefits apply.

The DOL also states that, “the language in a government contract does not determine whether the DBA applies.”

The onus is on the employer and not the Government. If a Government contract does not include language that specifies DBA coverage, the contractor or employer face the consequences of being uninsured. The DBA makes the employer liable for the benefits to the injured employee whether there is a policy in place or not.

As such, an employer who fails to secure compensation under the DBA may face criminal prosecution and be subject to imprisonment and or fines. Additionally, if the

employer is a corporation, the president, secretary and treasurer can be prosecuted individually and may be personally and severally liable for the compensation and other benefits.

These are severe penalties for not providing the proper coverage for employees doing work on base on a federal Public Works Contract. In order to avoid these pitfalls, it is important that you meet with your insurance agent and discuss how you can provide this coverage to your employees.

When the waiver in 2020 first came out, there were no insurance companies actively writing DBA policies on Guam. This is no longer the case. DBA insurance is readily available on Guam and is simple to procure.

Lastly, when selecting a DBA carrier, one thing you need to be aware of is that you want them to be experienced in adjusting DBA claims. The DOL has strict timelines when it comes to filing claims. It is imperative that your DBA carrier be experienced in claims settlement as any penalties ultimately fall on the employer.

Should you have any further questions regarding DBA insurance and its applicability to Guam, please contact your local insurance agent.

PHOTO HIGHLIGHTS

GCA September Luncheon September 20th, 2023 Hyatt Regency Guam

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PHOTO HIGHLIGHTS

GCA Picnic Committee Meeting

GCA Small Business Meeting

GCA Committess September Meetings

JOIN US! Create connections, Join a Committee to build a better GCA. facebook.com/GuamContractors

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35th GCA Annual Golf Scholarship FUN-raiser September 15th, 2023 Starts Golf Resort

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29th Annual GCA Family Day Picnic Sunday, October 8, 2023 Ypao Beach Park

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195

4526

Total Other Const. Occupations

Grand Total Construction Occupations

Other Construction Occupations A/C & Refrigeration Mechanic 5 Auto CAD Drafter 4 Construction Supervisor 33 Crane Operator 2 Equipment Technician 3 Field Supervisor 6 Foreman 7 Heavy Equipment Mechanic 55 HVAC/Aircon Technician 1 HVAC Mechanic 13 HVAC & Refrigeration Technician 1 Landscape Gardener 24 Licensed Practical Nurse 1 Occupational Health Safety Tech.

9 Paving Machine Operator 6 Rigger 1 Tile Setter 24

Common Construction Occupations Camp Cook 48 Carpenter 1287 Cement Mason 918 Electrician 411 HVAC & Refrigeration Mechanic 20 Construction Equipment Mechanic 20 Heavy Equipment Operator 218 Reinforcing Metal Worker 543 Painter 102 Pipefitter 94 Plasterer 0 Plumber 251 Sheet Metal Worker 150 Structural Steel Worker 99 Welder 170 Total Common Const. Occup.

4331

42

Total H-2B Workers by Nationality

4568

H-2B Workers by Nationality Australia 2 El Salvador 10 Greece 2 Honduras 18 Japan 7 Korea 78 New Zealand 4 Philippines 4438 Romania 6 Thailand 3

Total Non-Const. H-2B Workers

Other Non-Construction Occupations Automotive Mechanic 8 Baker 5 Dental Auxiliary 1 Electrician (Motor Rewinder) 5 Lead Transportation Equip. Painter 1 Maintenance Mechanic 0 Marine Mechanic 7 Painter Blaster 4 Planning Clerk 2 QC Inspector 3 Shipwright Carpenter 3 Soil Technician 0 Specialty Chef 2 Environmental Technician 1

3170

Total U.S. Workers in H-2B Companies

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

3170

GRAND TOTAL HͲ2B Workers

Total U.S. Workers in HͲ2B Companies

US Construction Workers

3474

4568

US WORKERS VS. HͲ2B

4568

8000 4526 3474

CES US Workforce (as of Dec 2022) less H-2B US Construction Workers

GRAND TOTAL H-2B Workers

4000

44 6 50

DPRI Authorized Total Occupations

H-2B Employers By Industry Construction Non-Construction Total H-2B Employers

Employers Workplace Monthly Report Statistics

Reinforcing Metal Worker 12.54%

Korea 1.71% Japan 0.15%

Honduras 0.39%

Romania 0.13%

Prepared By: Tabitha Cruz

El Salvador 0.22%

CONTACT INFORMATION: Greg Massey, ALPCD Administrator P.O. Box 9970 Tamuning, GU 96931 (671) 475-8005/8003

Greece 0.04%

New Zealand 0.09%

Australia 0.04%

Philippine s

Heavy Equipment Operator 5.03%

Construction Equipment Mechanic 0.46%

HVAC & Refrigeration Mechanic 0.46%

Electrician 9.49%

Cement Mason 21.20%

HͲ2B WORKERS BY NATIONALITY

Plumber Sheet Metal Painter 5.80% Worker 2.36% 3.46% Pipefitter Plasterer 2.17% 0.00%

Steel Worker 2.29%

Camp Cook 1.11% Welder 3.93% Structural

Carpenter 29.72%

COMMON CONSTRUCTION OCCUPATIONS

JULY 2023

MONTH ENDING:

REPORTS/INFORMATION

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