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Guam Contractors’ Association

NEWS BULLETIN

Vol.54 Issue 9 SEPTEMBER 2013


CONTENTSEPETEMBER

6

S.A.M.E.

10

COMMITTEE UPDATE

16

Feature Story

14

SMALL BUSINESS

16

FEATURE STORY

20

FEATURE STORY

24

PHOTO HIGHLIGHTS

26

CONSTRUCTION HEADLINE

28

CONSTRUCTION HEADLINE

30

AROUND THE BENCH

32

MEMBER BENEFITS

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CONSTRUCTION NEWS BULLETIN

20

Feature Story

www.guamcontractors.org


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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.

Guam Contractors Association

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.

Adam Baron

GCA STAFF: Francine Arceo Desiree Lizama COVER: Robert Salas, of LMS Guam and Past Chairman of the Guam Contractors Association was recently awarded the Guam Chamber Small Business Award.


S.A.M.E.UPDATE

SAME Monthly Membership Meeting August 15, 2013

Army Engineer Construction Operations

Captain Todd Mainwaring, P.E., Company Commander of the 643rd Engineer Company (Vertical) 84th Engineer Battalion presented at last month’s SAME Membership Meeting to introduce the Company and the impact they have made on Guam and throughout the surrounding islands. Headquartered on Naval Base Guam along with two sister companies, the 84th Engineer Battalion is comprised of approximately 250 electricians and plumbers organized into five separate detachments. Company has been actively involved with infrastructure improvement projects throughout the Pacific in countries such as the Philippines, In 2011, the Company received the SAME Itschner Plaque. This award, named in honor of Lt. Gen. Emerson C. Itschner, is presented to the most outstanding U.S. Army engineering company during the year. -

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CONSTRUCTION NEWS BULLETIN

www.guamcontractors.org


strengthens the host nation’s longterm capacity and develops enduring community relationships. Balikatan 13, Philippines

Before

Before Tafansak Elementary School Renovation, Kosrae

Before Water Tanker Storage Facility - Naval Base Guam

Multiple CMU Buildings - Andersen AFB, Guam

To join SAME Guam Post, log on to SAME.org and click on “Membership” at the top of the home page. www.guamcontractors.org

CONSTRUCTION NEWS BULLETIN

SEPTEMBER2013 | 7

S.A.M.E.UPDATE

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COMMITTEUPDATE

Military, Government and Labor Relations Committee Update – Sepemtber ‘13

CONFLICT IN THE MIDDLE EAST

By John M. Robertson

The “Arab Spring” and wars in the Middle East have dominated the international news over the past dozen years. Conflict continues and may intensify in the coming months. Because we are part of the global community, it is important for us in the Asia Pacific region to understand the root cause of the long enduring conflict – it is primarily based on religion. Of particular concern is the clash over fundamentalist beliefs of radical movements such as al Qaeda, the Taliban, the Muslim Brotherhood and Hezbollah. The Middle East is very religiously diverse. The three major religions, Judaism, Christianity, Islam and the Baha'i Faith are all Abrahamic religions, and each originated within the Middle East. Islam in its many forms is by far the most heavily represented religion in the region though many branches and sects diversify and segment it. In addition to the widely acknowledged religions, smaller minority religions such as Bahá'í, Druze, Yazidi, Mandean, Gnosticism, Yarsanism, Shabakism and Zoroastrianism are also prevalent throughout the Middle East.

Islam is the most widely followed religion

in the Middle East. About 20% of the world's Muslims live in the Middle East. Islam is monotheistic believing in Allah and follows the teaching of the written sacred text, the Qur'an. Islam is believed to be an extension of Judaism and Christianity with the belief that Muhammad is the final prophet of God, in a long chain of prophets, from Adam on down to John the Baptist, Jesus, and finally Muhammad.

Sunni and Shi'a Islam: A major source of conflict in the Muslim Middle East is the divisive nature between the two main sects of Islam: Sunni and Shi'a. Sunni is the largest branch of Islam and dominates most countries in the Middle East. Shia have

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their largest populations in Iraq (60–65%), Iran (90–96%), Lebanon (25–35%), the Zaydi in Yemen (30%) and Bahrain (65%) and are generally scattered otherwise. Minority Shia communities are also found in Turkey as the Alevi sect (10–15%), Saudi Arabia (10%), and Syria (15%). Though these two sects agree on the fundamentals of Islam and the teachings of the Qur'an, they are in conflict about who would lead the Muslim community after the Prophet Muhammad's death. After the death of Muhammad in 632 AD, Muslims who accepted Abu Bakr as the first Caliph became known as Ahl al-Sunnah wa al-Jama'ah or Sunni in order to differentiate them from Shi'ites, who rejected Abu Bakr's authority in favor of Hazrat Ali, son-in-law of the prophet, whom Sunnis accepted as the fourth Caliph rather than the first. Throughout the years, other differences have arisen between practices, beliefs and culture. Many conflicts between the two communities have occurred.

Judaism is dominant mostly in the state

of Israel. There are few other countries in the Middle East with significant Jewish populations, but they are small, scattered communities. The main text of Judaism is the Torah, The Bible in Hebrew. It is one of the oldest monotheistic religions, pre-dating both Christianity and Islam by thousands of years. It affirms the belief in one God as the Creator of all Creation, Yahweh. Judaism was the first organized monotheistic religion in the Middle East, providing the religious foundations present in both Islam and Christianity. One of Judaism’s foundational principles is that God promised the Land of Israel as an eternal inheritance as long as the Jews followed the guidelines delineated in the covenant. The fact that the Jews were re-gathered back into their ancient homeland is seen as a fulfillment of this prophecy by many Jews and Christians after their expulsion in 70 A.D by the Romans. Judaism still awaits the coming of the Messiah who will usher in an age of peace and prosperity, not only in Israel, but the world.

Christianity: Similar to Judaism, Christianity in the Middle East has a scattered presence. Lebanon, with 41% Egypt with 10% to 15% United Arab Emirates with 10%, and Jordan, 6%. These have the largest Christian populations in the Middle East. Christianity also lays claim to Israel as a Holy Land for its religion and has its origin in the Middle East. Christianity is a monotheistic religion that believes Jesus of Nazareth, the son of God, was the

CONSTRUCTION NEWS BULLETIN

messiah. The Hebrew bible is referred to as the Old Testament and is interpreted as prophecy for the coming of Jesus.

Bahá'í Faith: Within the Middle East, Bahá'í has noteworthy representation in Iran, United Arab Emirates, Israel, and Turkey. Its international headquarters are located upon the northern slope of Mount Carmel at Haifa, Israel. Founded in Iran in 1863, the Bahá'í Faith is one of the youngest world major religions. It is founded on the principle that each of the world’s religions has truth. In the line of prophets of the past and to come, God’s message will continue to be revealed; the Bahá'í Faith refers to this as progressive revelation.

Druze Faith, or Druse, is a monotheistic religion found in Syria, Lebanon, Israel and Jordan. Representation ranges from 100,000 in Israel, to 700,000 in Syria. Developing from Isma'ilite teachings, Druze incorporates Jewish, Christian, Gnostic, Neoplatonic and Iranian elements. They set themselves apart from Muslims. It is a strict monotheism, they call themselves muwahhidun, meaning monotheists. The Druze prohibit all conversion to the religion. Much of their practices and beliefs are kept secret from outsiders because of its esoteric nature and even within the faith only an elite group called the uqqal (“knowers”) are fully aware of Druze practices.

Samaritanism, Yazīdī, Mandeanism, Shabakism and Zoroastrianism, are

present in the Middle East but with fewer than 100,000 adherents each. RELIGION IN KEY NATIONS OF THE MIDDLE EAST:

Egypt: Religion in Egypt consists of

Islam (mostly Sunni Muslim) 90%, Coptic Christians 9% and Other Christians 1%. As Egypt has modernized with new forms of media and the Egyptian press was liberalized in the 2000s, Coptic Christianity has become a main topic of religious controversy. There is much tension between the Muslims and Copts of Egypt as Copts argue for more representation in government and less legal and administrative discrimination; they also feel under-protected from religious hate-crimes. With this greater freedom of press, the Coptic issue has just begun to break into public awareness, but also due to rises in extremism in both communities, media may also be exacerbating the sectarian tension

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The fundamentalist Salafi movement has been notable following insurrections in Egypt, Tunisia and Libya. In the 2011–12 Egypt parliamentary elections, the affiliated Islamist Bloc led by Al-Nour party despite having only "a few months of party politicking experience" managed to receive 27.8% of the vote, or 127 of the 498 parliamentary seats contested, to form the second-largest parliamentary bloc. While Salafis and the Muslim Brotherhood agree on many issues such as the need to “Islamise” society and the right to private property restricted by the duty incumbent upon Muslims to give alms, they have clashed over the Brotherhood's "flexibility" on the issue of whether women and Christians should be entitled to serve in high office, and the brotherhood's relatively tolerant attitude towards Shia Iran in foreign policy. The Salafi movement in Egypt is similar to the Wahabbi movement in Saudi Arabia.

Iran: Religion in Iran is made up of 98%

Islam (Shi'a 89%, Sunni 9%) and 2% Zoroastrian, Jewish, Christian, and Baha'i. Before the 2009 elections and demonstrations, the Basij and religious police were in a power position with the rights to arrest and punish people for acting immorally (i.e. wearing makeup or drinking alcohol). There was much religious oppression and executions of members of the Bah’ai faith. Religious minorities are now beginning to hold a larger presence and significance in Iran and are being acknowledged as such. The Islamic Revolution replaced an old world monarchy with a theocracy based on a grand position of the Guardianship of the Islamic Jurist. This is a mix of republicanism and religion that would use religion to rule for elective and democratic institutions; it was to be a blend of liberalism and religious injunctions. Islam would be protected under this Islamic Republic and unelected positions like the Supreme Leader and the Guardian Council would have unlimited power over the nation.

Iraq: Religion in Iraq is represented by 97% Islam (Shia 60%–65%, Sunni 32%37%), and 3% Christian or other. Because of this large majority of Shia over Sunni Muslim, there is much tension between the two groups. Saddam Hussein, a Sunni Muslim, was able to exercise control over the Shia majority by brute force.

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Saudi Arabia: Religion in Saudi Arabia

is allegedly 100% Muslim. It is illegal to practice any other religion than Islam in Saudi Arabia. There is still tension, however, between the Sunnis and the Shias. Sunni Islamists present a larger threat to the government because of their large population. These Sunni groups often dissent through violence targeted at government, Western or non-Muslims and sometimes generally directed against moral corruption. The Saudi government takes seriously their responsibility of maintaining the Muslim faith in the land where it came into being and where two of the three holiest shrines are located – in Mecca and Medina. The third is in Jerusalem. Former King Fahd instructed all to refer to himself as “Custodian of the two Holy Mosques” instead of “Your Majesty”. According to non-Muslim academics, one of the most defining features of Islamic fundamentalism is belief in the "reopening" of the gates of ijtihad, an Islamic legal term that means “independent reasoning”. As one of the four sources of Sunni law, it is recognized as the decision making process in Islamic law (sharia) through personal effort (jihad), which is completely independent of any school of jurisprudence. Some non-Muslim academics believe Islamic fundamentalism is not distinct from Islamism but is a subset, the most conservative element among Islamists. The strictest form of Islamism in Saudi Arabia includes "Wahhabism”. For fundamentalists the law is the most essential component of Islam, leading to an overwhelming emphasis upon jurisprudence, usually narrowly conceived." To all intents and purposes, Islamic fundamentalism and Islamism have become synonyms in contemporary American usage. It is important to note that Osama Bin Laden was raised within the Wahhabi faith. His personal wealth came from his family and their Saudi Binladen Group (SBG). The SBG was founded in 1931 by Sheikh Mohammed bin Laden Sayyid, whose relationship with the country's founder, Abdel Aziz al Saud, led to important government contracts such as refurbishing the mosques at Mecca and Medina. SBG is now one of the largest construction consortiums in the world. The Arabic term Al-Qaeda translates as: "The Base". It is a global militant Islamist organization founded by Osama bin Laden in Peshawar, Pakistan, at some point between August 1988 and late 1989, with its origins being traceable to the Soviet War in Afghanistan. It operates as a network comprising both a multinational, stateless army and a radical Sunni Muslim movement calling for global Jihad and a

strict interpretation of sharia law. It has been designated as a terrorist organization by the United Nations Security Council, NATO, the European Union, the United Kingdom, the United States, and various other countries. Al-Qaeda has carried out many attacks on non-Sunni Muslims, non-Muslims, and other targets it considers kafir. Al-Qaeda has attacked civilian and military targets in various countries, including the September 11 attacks, 1998 U.S. embassy bombings and the 2002 Bali bombings. The U.S. government responded to the September 11 attacks by launching the War on Terror. With the loss of key leaders, culminating in the death of Osama bin Laden, al-Qaeda's operations have devolved from actions that were controlled from the top-down, to actions by franchise associated groups, to actions of lone wolf operators.

Yemen: Religion in Yemen is represented by a majority Islam (including Sunni and Shiite), plus small numbers of Jewish, Christian, and Hindu believers. The militant Islamist group al-Qaeda in the Arabian Peninsula (AQAP) was formed in January 2009 through a union of the Saudi and Yemeni branches of al-Qaeda. Jihadist antecedents in the region date to the early 1990s, when thousands of mujahedeen returned to Yemen after fighting the Soviet occupation in Afghanistan. Analysts rate the Yemen-based group as the most lethal al-Qaeda franchise, carrying out a domestic insurgency while maintaining its sights on striking Western targets. Israel: Religion in Israel is represented by the following religious make-up: Judaism 77%, Islam 16%, Christian 2%, Druze 2% (2003). Israel and adjoining territory represents the religious Holy Land for Jews, Christians and Muslims. All religions are present in Israel and lay personal claim to the land. Due to the significant Israeli/Palestinian conflict, tensions are high in the religious community. The majority of displaced and upset Palestinians are Muslim and the majority of current Israeli citizens are Jewish so establishing the state borders is highly influenced by religion. Palestine: The Palestinian people, also referred to as Palestinians are the modern descendants of the peoples who have lived in Palestine over the centuries, and who today are largely culturally and linguistically Arab due to Arabization of the region. Despite various wars and exoduses, roughly one half of the world's Palestinian population continues to reside in historic Palestine, the area encompassing the West Bank, the Gaza Strip and Israel. The Palestinian population of the West Bank and Gaza Strip is 97% Muslim (predominately Sunni) and 3% Christian. The unsettled matter of a Palestinian State is the cause

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SEPTEMBER2013 | 11

COMMITTEUPDATE

by only publicizing examples of prejudice. Current religious tension in Egypt is focused on the role of the Muslim Brotherhood, founded by Hassan al-Banna in Egypt. The Brotherhood's credo was and is, "Allah is our objective; the Quran is our law, the Prophet is our leader; Jihad is our way; and dying in the way of Allah is the highest of our aspirations."


COMMITTEUPDATE

behind much of the present day conflict in the Middle East.

Jordan: Religion in Jordan is represented by 92% Muslim (Sunni), 6% Christian (mostly Greek Orthodox), and 2% other. The hereditary ruler of the Hashemite Kingdom of Jordon, currently King Abdullah II ibn Al-Hussein, is a direct descendent of the 7th century prophet Muhammad. Lebanon: The country has the most religiously diverse society in the Middle East, comprising 17 recognized religious sects. Religion in Lebanon is represented by 54% Muslim (30% Shi'a, 24% Sunni, plus Isma'ilite, Alawite/Nusayri), 5% Druze, 41% Christian (21% Maronite, 8% Greek Orthodox, 5% Melkite Catholic, 7% other Christian denominations like Armenian Orthodox, Syriac Catholic, Armenian Catholic, Syriac Orthodox, Roman Catholic, Chaldean, Assyrian, Copt, and Protestant). No official census has been taken since 1932, reflecting the political sensitivity in Lebanon over confessional (i.e. religious) balance. It has a confessional political system in which, regardless of party, the President is Maronite Christian, the Prime Minister a Sunni Muslim, and the Speaker of the Parliament a Shi’ite, and the Deputy Prime Minister Greek Orthodox. This is the source of much conflict and while changes have been made to attempt to make parliamentary representation more even, many are still urging for reform and change. Some, even, would like the confessionalist government to be abolished. Real control of the government has been largely from Damascus over the years. Hezbollah literally translates to "Party of Allah" or "Party of God" is a Shi'a Islamic militant group and political party based in Lebanon. Its paramilitary wing is regarded as a resistance movement throughout much of the Arab and Muslim worlds, and is considered more powerful than the Lebanese Army. It has taken the side of the government in the Syrian civil war and in May–June 2013 successfully assisted in the recapture of the strategic town of Qusayr. The governments of the U.S., Netherlands, France, Gulf Cooperation Council, U.K., Australia, Canada, the European Union and Israel classify Hezbollah as a terrorist organization, in whole or in part. Hezbollah was conceived by Muslim clerics and funded by Iran following the Israeli invasion of Lebanon, and was primarily formed to offer resistance to the Israeli occupation. Its leaders were followers of Ayatollah Khomeini, and its forces were trained and organized by a contingent of 1,500 Iranian Revolutionary Guards that arrived from Iran with permission from the Syrian government. Hezbollah's 1985 manifesto listed its four main goals as 1. “Israel's final

12 | SEPTEMBER2013

departure from Lebanon as a prelude to its final obliteration"; 2. Ending "any imperialist power in Lebanon"; 3. Submission of the Phalangists to "just rule" and bringing them to trial for their crimes; and 4. Giving the people the chance to choose "with full freedom the system of government they want", while not hiding its commitment to the rule of Islam. Since 1992, the organization has been headed by Hassan Nasrallah, it's Secretary-General.

Syria: Religion in Syria is represented by

70% Islam (Sunni), 12% Alawite, 5% Druze, and other Islamic sects, 10% Christian (various sects), and there is some Jewish representation (tiny communities in Damascus, Al Qamishli, and Aleppo). The Alawites, also known as Alawis are a prominent mystical religious group centered in Syria who follow a branch of the Twelver school of Shia Islam. Alawites revere Ali ibn Abi Talib and the name "Alawi" means followers of Ali. The sect is believed to be founded by Ibn Nusayr, in the eighth century. The establishment of the French Mandate of Syria, marks a turning point in Alawi history. It gave the French the power to recruit Syrian civilians into their armed forces and created exclusive areas for Alawis (including an Alawite State). The Alawi states were later dismantled, but Alawites continued to have significant representation in the Syrian army. Since Hafez al-Assad took power in 1970, the government has been dominated by a political elite led by the secular Alawite Assad family. During the Islamic uprising in Syria in the '70s and '80s, this establishment came under tremendous pressure. The conflict continues today as a function of the Syrian civil war. In 1970, then Air Force General, Hafez al-Assad, an Alawite, took power and instigated a "Correctionist Movement" in the Ba'ath Party. The coup of 1970 ended the political instability that had lasted since the arrival of independence in 1948. Hafez al-Assad's coming to power was an unprecedented development, shocking to the Sunni majority population which had monopolized power for so many centuries. In 1971, al-Assad declared himself president of Syria, a position the constitution at the time allowed only for Sunni Muslims to hold. In 1973, a new constitution was adopted that omitted the old requirement that the religion of the state be Islam and replaced it with the statement that the religion of the republic's president is Islam. Protests erupted when this became known. Under the authoritarian but secular Assad government, religious minorities were tolerated more than before, but political dissidents were not. In 1982 when the Muslim Brotherhood mounted an

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anti-government Islamist insurgency, Hafez Assad staged a military offensive against them which has since been referred to as the Hama massacre. Alawites have been estimated to constitute about 12% of Syria's population, or 2.6 million people of Syria's 22 million population. The Al-Nusra Front or Jabhat al-Nusra: The Support Front for the People of Greater Syria is an Al Qaeda associate operating in Syria. The group announced its creation on 23 January 2012 during the Syrian civil war. It is described as "the most aggressive and successful arm of the rebel force". The group was designated by the United Nations and principal western nations as a terrorist organization. In April 2013, the leader of the Islamic State of Iraq released an audio statement announcing that Jabhat al-Nusra is its branch in Syria. The leader of Al Nusra, Abu Mohammad al-Golani, denied the merger but affirmed their allegiance to Al-Qaeda leader Ayman al-Zawahiri. By May 2013, a faction of Jabhat loyal to the Islamic State of Iraq leadership began acting under the name of the "Islamic State of Iraq and the Levant". The group is generally described as being made up of Sunni Islamist Jihadists. Its goal is to overthrow the Assad government and to create a Pan-Islamic state under sharia law and aims to reinstate the Islamic Caliphate. It encourages all Syrians to take part in the war against the Syrian government. The various factions attempting to overthrow the Assad government are at the same time fighting each other for supremacy.

PostScript: This report is based on published information such as Wikipedia and ten years’ experience of the writer in the Middle East. It.does not attempt to draw conclusions but rather provides background information upon which readers can form their own opinions. The Middle East story continues to unfold, just as it has for past millennia.

The Military, Government and Labor Relations Committee is open to all members of the association. Contact the GCA office for time and place of meetings.

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SMALLBUSINESS

CAP arrives in... A second Community Access Point (CAP) opened up in the Sinajana Mayor’s Office on Thursday, September 5, 2013 giving people in central Guam access to computerized training that can boost their hiring potential. The CAP is a partnership between Guam Community College, the Guam Contractor’s Association, the Guam Chamber of Commerce and the Mayor’s Council of Guam.

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Residents have access to free online training via the KeyTrain component of WorkKeys, the Job Assessment and Training program offered through GCC. The Bank of Guam donated the 10 computers for the Sinajana CAP. Once participants complete the KeyTrain program, they can take a test to earn a National Career Readiness Certificate offered through WorkKeys. Cost for the test is $65. The NCRC is proof for employers of specific skills

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that the potential employee has mastered. The first Community Access Point opened at the Inarajan Mayor’s Office in January of this year and was sponsored by M80 Systems, Inc. Three of the five people in program’s initial cohort have already secured better jobs as a result of their participation. The Sinajana CAP is expecting close to 20 participants. On to the next village!

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by David F. Macaluso

LMS Wins 2013 Small Business Excellence Award.


The Guam Chamber revealed that Landscape Management Systems (LMS), Inc was the winner of the 2013 Small Business Excellence Award. This announcement was done in front of the business community of Guam and other businesses from the surrounding region during the Guam Chamber’s 9th Annual Small Business Expo held in late June. This is the fourth year that Guam Chamber presented this was award to honor a member from Guam’s business community. According to Small Business Focus and Development Committee Chairman, Rodney Webb, “This award honors LMS because it made a noteworthy contribution to the growth of small business on Guam by being a leading advocate of increased trade and investment ties between Guam and other key foreign markets. Landscape Management Systems is very deserving of this award.” Webb feels that LMS, owner, director, and general manager Robert P. Salas, exemplifies excellence in its commitment to good and ethical business practices, its involvement in providing support to a multitude of small businesses, providing consistent and excellent service and being sought after as a business of choice in its industry. Over the past thirty years Salas has gained experience in real estate services and held a number of positions at Guam Economic Development Authority, Guam Contractors Association, Guam Department of Parks and Recreation and the University of Guam Endowment Foundation. From 1986 to 1994 Salas was a selfemployed developer and contractor who worked with major developers like Sumitomo Construction Co. and Kumangaigumi Construction Co.. During this time he gained knowledge about the industry while developing his skills in real estate and business consulting. Also during this time Salas

FEATURESTORY

Landscape Management Systems (LMS) has been enhancing the development of Guam since 1994 and this year it was recognized by the Guam Chamber of Commerce for being the best small business.

was able to identify and negotiate the purchase of land in Manenggon Hills for the development of the Leo Palace Resort Guam. Today Leo Palace contains a 36 Hole full scale champion course designed by living golf legends Jack Nicklaus and Arnold Palmer. The property also includes condos, townhomes, houses and a 200 room hotel with a large ballroom to host numerous events, softball & baseball fields, a track, tennis courts, and an olympic size swimming pool. Leo Palace is also commonly used for spring training for Japanese Major League Baseball. Salas also worked with the developers pertaining to the Piti Underwater Observatory (Fish Eye Marine Park). Initially the Fish Eye Marine Park Project was opposed by two senators and a coral expert. Salas was hired as a consultant to help navigate the government and environmental regulations, within six months he was able to help the client resolve all issues and secure the necessary permits to complete the project. Now Fish Eye Marine Park is a landmark where both tourists and locals go to enjoy the underwater life that surrounds our island. Fish Eye Marine Park allows people to get a close look at all the beautiful species of fish that swim in our tropical warm waters. In 1994, Salas formed the Landscape Management Systems, Inc. (LMS) and for nearly twenty years its been providing landscaping services on Island. LMS provides services to the public, private and residential community on Guam. LMS offers landscape installation, maintenance, and renovation services and also serves as a real estate and business consultation firm. In addition, Landscape Management Systems has an on-site 5-acre nursery which houses more than 500 different species of both indigenous and introduced plants found on island and throughout the Marianas. Because of the company’s supply of native plants, LMS was contracted by United States Air Force’s restoration project at Ritidian Point to provide more than 100 of these indigenous species. LMS helped spearhead a number of commercial projects which includes; the Guam Medical Plaza, Calvo Salas Warehouse Complex, LMS Mangilao

nursery property, LMS Tumon Property, and the Bob Salas Warehouse Facility. This company also supervised numerous work crews during the cleanup efforts of post-Typhoon Chata'an and Super Typhoon Pongsona. During that time close attention was given to salvage as many trees and plants as possible. LMS was also called in to help restore Cocos Island during the Cocos Island Reclamation Project. At first there were concerns and initial opposition pertaining to environmental issues surrounding the project. But Salas ensured the United States Environmental Protection Agency that all issues would be addressed. Shortly afterwards approvals were secured in order to allow Cocos Island to conduct the reclamation and restoration of the resort island. Landscape Management Systems has undertaken and enhanced the development of Guam to help this island community. According to Salas, the company recently received TLUC approval for Talofofo Village, which consists of 31 quarter-acre lots to be sold to local families. LMS also helped develop Tower 70, a 70-unit low-income housing tax credit project.


FEATURESTORY

The reason why this company was nominated for the 2013 Small Business Excellence Award by DCK Pacific Guam, the winner of the 2009 Guam Contractor Association (GCA) Contractor of the Year Award is because over the years LMS has worked on many projects with DCK which includes the award winning Coast 360 Headquarters found in Maite on Route 8. That project was officially awarded a Gold Certification in Leadership in Energy and Environment Design (LEED) by the United States Green Building Council (USGBC). The Coast 360 headquarters is one of a handful of pioneers in facilitating the development of sustainable “green” buildings and the first private sector and only financial institution on Guam to be Gold LEED certified. The building was designed to achieve high performance in key areas of human and environment health, which eventually converts to lower operating costs, increase asset value, reduce waste sent to landfills, conserve energy and water, be healthier and safer for occupants and reduce harmful greenhouse gas emissions. As a side note, In addition Coast 360 winning their award, DCK Pacific also won an award, First Place Overall Project for this building, GCA’s 2010 Excellence in Construction for its construction of the Coast 360 Federal Credit Union in Maite. DCK is a diversified group of professionals that helped Guam grow with a number of new and renovated institutional, retail, hotel, recreational, offices, industrial facilities and it is currently building the new Guam Regional Medical City (GRMC) which is scheduled to open sometime in April 2014 in Dededo.

Since the company formed in 1994, LMS has a repetition of maintaining a strong commitment towards high ethical standards, follows strong business practices and is committed to provide service for their clients. As LMS undertakes each project, it has a focus of delivering the highest quality of service and product possible. Landscape Management Systems received high praise from the Commander of the 36th Wing, United States Air Force (USAF), for its work on the design and installment of the Raider 21 Memorial when it was unveiled in July 2009. The Memorial is in the form of a latte stone built to honor six crewmen who lost their lives in July 2008, when their B-52H Stratofortress crashed into the Pacific Ocean about 30 nautical miles (35 miles) of Apra Harbor. The aircraft was named "Louisiana Fire" and its mission was called Raider 21, which was a training flight that included the "Louisiana Fire" to participate in a fly over for the 64th Liberation Day Parade. It crashed five minutes before the scheduled fly over. According to air traffic control, the aircraft descended rapidly before it disappeared from radar. An investigation by the USAF said the crash was caused by an improper horizontal stabilizer trim setting, most likely cause was an aircraft system malfunction. Four of the six crewmen bodies were not found. The names of the Raider 21 aircrew are etched on into the memorial’s surface which proudly stands at Adelup. The members are Col. George Martin, Maj. Christopher Cooper, Capt. Michael Dodson, Maj. Brent Williams, 1st Lt. Joshua Shepherd, 1st Lt. Robert Gerren.

LMS takes pride in giving back to the island. Salas is passionate about making a positive impact within this community. The company has contributed numerous hours, funds and support to various local organizations which includes churches from Yigo, Mongmong, Agana, and Ordot. It also supports the Society for Human Resource Management, Redemptoris Mater Seminary Gala, Kick the Fat 5K, the USO , the Red Cross, Notre Dame High School and sponsoring four youth football teams. In addition, Salas served on various boards contributing his time and expertise to business, academic, religious and government entities; Department of Parks and Recreation, Lt. Governor’s Beautification Task Force, San Juan Bautista Catholic Church Finance Council Chairman, University of Guam Endowment Foundation, Catholic Cemetery Board, Committee to Get Guam Working, GEDA Board of Director, and GCA Past Chairman. According to DCK, LMS is deserving of the prestigious award because of its performance and reputation to handle the challenges within business and construction environments on Guam. This local company has a long history that is dedicated to this island community. Its been a leader in projects that enhanced the development of Guam. But LMS’ current success didn't come easy, it was done by hard work, through dedication and providing exceptional service to each and every customer. And over the years, the company demonstrated a willingness to innovate. That is why Landscape Management Systems was proudly named the winner of the 2013 Small Business Excellence Award.


by Adam Baron


The first step in qualifying for a bond program is understanding the basics of a surety relationship. Therefore, this article will not go into vast details of the surety relationship – that is best suited for a face to face meeting with a surety professional. Rather, this article covers the fundamental definitions and mechanisms of surety in order to help you understand the nature of the suretyship and hopefully make a meeting with your surety professional more meaningful and productive. So let’s begin with describing the basic bond arrangement and the parties involved… Generally, surety is a three party arrangement where one party (contractor, referred to as the Principal) has a contractual obligation to second party (usually the owner, referred to as the Obligee); with a third party (the Surety) being a guarantor ‘backing’ the first party (Principal / contractor) to the owner/obligee. Defining the three parties a bit further: The Principal (also referred to as the Contractor): The Principal is to perform the work as contractually obligated in the underlying contract, plans, specifications and general conditions, all of which detail what the Principal is expected to accomplish and within what time frame. The Obligee: The Obligee is the party for whom the contractor is performing the work. This can be a project owner, OR, if the principal is a first tier subcontractor, the Obligee would be their Prime Contractor that the sub is working directly under. For the purpose of this article, we’ll presume the Obligee is a project owner and not a Prime Contractor. The Obligee (as owner) has a few critical responsibilities and must adhere to the contracts terms, but perhaps most importantly they must pay the Contractor as agreed. The Surety: The surety is the guarantor behind the contractor. The surety will vigorously prequalify the contractor/principal in terms of character, experience, past performance, capability and financial capacity. If deemed sufficient, the surety will agree to issue a bond for a specific contract. The bond issued guarantees certain obligations are met by the contractor. If all goes well, the surety will have little to do (and little

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communication with the owner/obligee). In due course they will be able to close their bond file (when appropriate) without much involvement. However, if the contractor/principal should fail to perform on the job, or fail to pay certain vendors, then the surety would become much more involved with the Obligee (and Contractor/Principal) in finding and funding a remedy to the situation. There are basically three primary types of bonds pertaining to contract surety. These are: Bid bonds, Performance Bonds and Payment Bonds. Each is briefly described below: Bid Bonds: Bid bonds are most frequently mandated on public/gov’t projects. If/when required, the bid bond will be provided to the owner (government) by the contractor as part of the contractor’s bid submission. The bid bond guarantees that the bid was placed in good faith and that the contractor, if awarded the contract, will enter in to the contract and provide the required Performance and/or Payment bonds. The bid bond is usually a set percentage of the total bid amount (usually 10% to 20% of the bid). In the event that the contractor fails to enter in to the contract or fails to provide the requirement Performance/Payment bonds, the owner has the right to claim to the surety for an amount up to the full penalty of the bid bond . The amount of the claim depends on how much additional costs the owner incurs if the second-low contractor is to be selected in lieu of the low bidder. Performance bonds: The performance bond protects the owner (Obligee) from financial loss due to the contractor’s failure to perform in accordance with the contract, plans and specifications. If, on a bonded project, a contractor fails to perform accordingly, the owner has recourse to file a claim with the surety. The surety must then investigate and, if appropriate, step in and remedy the situation. They can do so by: 1) facilitating a bailout plan with the original contractor (if agreeable to the owner), or 2) the surety can find an acceptable replacement contractor at the surety’s expense, or 3) the surety can negotiate a financial settlement with the owner. Payment bonds: The payment bond protects the owner from certain unpaid suppliers, subcontractors or labors (and

other possible claimants) having a direct working relationship with the contractor (or, in some cases, under the prime contractor’s subs (ie. a two layers down)). These are typically entities which have mechanic’s lien rights. In the event that the bonded contractor (or his subcontractor) is unable to pay uncontested amounts payable to certain subcontractors, suppliers or laborers (or other possible claimants), the surety would then step in and satisfy the uncontested job-specific payables of the contractor. It is interesting to note that Payment bond claims can occur even if the job site performance is proceeding satisfactorily. One final item worth explaining is the Indemnity Agreement. The concept of the indemnity agreement is one of the defining distinctions between surety and insurance. The indemnity agreement is a critical element of a surety relationship and is one of the main aspects of surety that lend it to appear more like bank credit than an insurance policy. Resembling a bank’s loan agreement, the primary function of the indemnity agreement is to serve as the contractor’s agreement to reimburse the surety for all costs incurred by the surety in the event that the surety had to step in and complete the bonded contractors’ obligations. The bottom line: As a form of credit, if the surety has to pay out to honor any of the contractor’s obligations, the contractor must reimburse the surety pursuant to the indemnity agreement. Bearing this in mind, one must put careful thought in to each job before signing a contract and providing bonds. However, the up-side of being able to provide bonds is that it may open doors to opportunities that otherwise might not be obtainable for a construction company. I hope you have found the above informative and invite you to further explore surety bonds by visiting the Surety Information Office website at www.sio.org, or by calling our office.

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

CONSTRUCTION NEWS BULLETIN

SEPTEMBER2013 | 21

FEATURESTORY

If your company has not yet established itself for a surety bond program, stop here and read this article…


Hit the gas.

The Simpson Strong-Tie ® GCN-MEP gas-actuated concrete nailer is designed for mechanical, electrical and plumbing applications, such as attaching light-duty fixtures to concrete, CMU and metal deck. The GCN-MEP is simple to load and use, and features an optional 40-pin magazine, 1,200-shot fuel cell and 3,300-shot battery charge to maximize fastening time. The GCN-MEP can shoot single pin assemblies that are 1" in length and have .300" head diameter with .125" shank diameter (or attach an optional magazine to shoot .25" head diameter strip pins ½"–1 ½" in length). To learn more call (800) 999-5099 or visit www.strongtie.com/anchorsystems. To speak with a Simpson Strong-Tie representative in Guam, call 671-689-6201.

IN THE SPECS ON THE JOB AT YOUR SERVICE™ © 2013 Simpson

Strong-Tie Company Inc. GCNMEP11

SAS-GCNMEP11_7.5x10.indd 1

8/30/13 5:18 PM


PHOTOHIGHLIGHTS

GCA Luncheon August 21, 2013 Westin Resort & Spa

dck pacific guam, LLC announced that Bishman Continental Services Electrician Apprenticeship Class received their journeyman certificates on August 19, 2013 at the Hyatt Regency Guam Hotel. This is a significant achievement because this class was conducted solely in-house with instructors who are also employed by dck pacific dba Bishman Continental Services. Graduates are: Rodney C. Belarso Bernardo S. Silverio Nestor P. Casin Benigno A. Valera Jr. Joseph G. Hocog

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CONSTRUCTIONHEADLINE

FOR IMMEDIATE RELEASE

CONTACT GERRY FRITZ

(793) 812-2062

ASSOCIATED BUILDERS AND CONTRACTORS INC.

ABC and Safety Coalition Concerned with OSHA's Proposed Crystalline Silica Rule AUGUST 29, 2013

Arlington, Va. - AAssociated Builders and Contractors (ABC) and members of the newly formed Construction Industry Safety Coalition, a group of national construction industry trade associations, expressed concern over a proposal from the Occupational Safety and Health Administration (OSHA) addressing crystalline silica exposure in the construction industry. On Aug. 23, OSHA proposed drastically lowering the existing permissible exposure limit (PEL) for silica, prescribed control methods that contradict existing safety practice, and mandated new recordkeeping and training requirements. Independent studies have estimated compliance with similar provisions to cost $1 billion to $2 billion per year. "OSHA still has not explained how a lowered PEL will be effective at reducing the number of silica-related illnesses, particularly when the agency has admitted its failure to properly enforce the existing standard," said ABC Vice President of Government Affairs Geoff Burr. "The agency clearly missed an opportunity to take a cost-effective approach while still improving compliance and worker safety." The Construction Industry Safety Coalition is urging OSHA to develop technologically feasible alternatives for compliance with a silica rule that address costs and consistency with existing federal regulations and do not overly burden small businesses. In addition, the coalition said the agency should consider factors unique to construction, as industry-specific tasks and activities are highly variable and change constantly as projects progress. "ABC and our coalition partners are reviewing OSHA's proposal, and we look forward to the opportunity to express our concerns fully at the appropriate time," Burr added. The coalition represents associations from all sectors of the construction industry, including commercial building, heavy industrial production, home building, road repair, specialty trade contractors and material suppliers. Workplace safety and health is a priority for all members of the coalition, and each is committed to helping create safer construction jobsites for workers. Coalition members are: • • • • • • • • • • •

* * * * * * * * * * *

Associated Builder and Contractors (ABC) Associated General Contractors (AGC) Association of the Wall and Ceiling Industry (AWCI) American Road and Transportation Builders Association (ARTBA) American Subcontractors Association (ASA) International Council of Employers of Bricklayers and Allied Craftworkers (ICE) Mason Contractors Association of America (MCAA) Mechanical Contractors Association of America (MCA) National Association of Home Builders (NAHB) National Electrical Contractors Association (NECA) National Roofing Contractors Association (NRCA)

Associated Builders and Contractors (ABC) is a national trade association representing 22,000 members from more than 19,000 construction and industry-related firms. Founded on the merit shop philosophy, ABC and its 72 chapters help members win work and deliver that work safely, ethically and profitably for the betterment of the communities in which they work. Visit us at www.abc.org. 26 | SEPTEMBER2013

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CONSTRUCTIONHEADLINE

FOR IMMEDIATE RELEASE

CONTACT GERRY FRITZ

(793) 812-2062

ASSOCIATED BUILDERS AND CONTRACTORS INC.

Associated Builders and Contractors Criticizes New DOL Regulations for Federal Contractors AUGUST 28, 2013

Washington, D.C. - Associated Builders and Contractors (ABC) today criticized two final rules from the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) that drastically alter federal contractors' existing affirmative action and nondiscrimination obligations for veterans and individuals with disabilities. "Despite OFCCP's inability to demonstrate federal construction contractors' failure to meet requirements under existing federal law, the new rules contain numerous burdensome data collection and reporting provisions and set infeasible compliance requirements," said ABC Vice President of Government Affairs Geoff Burr. "Although industry studies show that the individuals covered by these rules are already appropriately represented in the federal contracting sector, now contractors will be saddled with incredibly expensive recordkeeping obligations that will do nothing to increase employment of these individuals." Under Section 503 of the Rehabilitation Act and Section 4212 of the Vietnam Era Veterans' Readjustment Assistance Act, federal contractors and subcontractors are already required to maintain affirmative action and nondiscrimination programs. However, OFCCP's new rules revise existing procedures by drastically increasing the paperwork burdens on federal contractors in all industries. Of most concern to construction contractors are provisions requiring written documentation and tracking of workforce statistics to determine whether the percentage of protected employees meets affirmative action requirements for federal projects. Such paperwork and reporting provisions are completely new to the construction industry-a fact that was not taken into account in OFCCP cost estimates. "Under these rules, OFCCP completely ignored the unique nature of the construction industry and its workforce, which the agency itself has characterized as 'fluid' and 'transitory,' and which has historically warranted a unique approach toward affirmative action compliance," Burr said. "ABC supports OFCCP's statutory mission to address employment discrimination against veterans and individuals with disabilities, and remains committed to placing these individuals in good construction jobs," Burr said. "Unfortunately, the Obama administration appears to be more concerned with imposing new and costly burdens on federal contractors than with crafting reasonable policies based on sound statistics and data. "ABC has serious legal and practical concerns with the agency's new rules, and will explore avenues to challenge the rules in federal court," said Burr. Associated Builders and Contractors (ABC) is a national trade association representing 22,000 members from more than 19,000 construction and industry-related firms. Founded on the merit shop philosophy, ABC and its 72 chapters help members win work and deliver that work safely, ethically and profitably for the betterment of the communities in which they work. Visit us at www.abc.org.

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AROUNDTHEBENCH

STEEL IS GOOD "Shelter from the Storm" By: Shawn Gumataotao A great article recently by Mark Robbins of Metal Construction News brings to mind a great sale pitch for metal buildings: "...with proper design and storm-resistant construction, the damage to buildings by Mother Nature's tantrums can be greatly reduced." While building to code is just not enough, ensuring your metal building is designed and constructed to resist wind effects is very important. Living in the Western Pacific, that axiom is so very true. Life in "Typhoon Alley" means you must build to withstand hurricane or typhoon force winds of 170 miles per hour or greater. Believe it or not, the best constructed steel buildings on Guam have more than answered that call. There are still some post-War buildings that stand today on our island that have seen dozens of storms come and go through our latitude. It must mean that the construction of the vertical and lateral load paths of these monuments to Mother Nature were spot on. Fasteners, bracing and straps were also instrumental in keeping these buildings intact.

30 | SEPTEMBER2013

In discussions with CECO Building Systems, they have committed to taking extra efforts to ensure that a steel building they help build on Guam will be properly engineered to this extreme weather condition-something that I believe is such a value added benefit for the local steel building customer. This extra engineering time to ensure that their product can withstand the harsh elements related to tropical storms or typhoons in the Western Pacific is a testament to their commitment to great customer service and above all-keeping the building owner and the neighboring public safe. While perlins and girts need to be strengthened, it is the roof that must be able to be storm-resistant as well. Another one of our partners, Mississippi-based Fabral, is just as committed to protecting against the often volatile Western Pacific trade winds. Their attention to detail in the engineering of roofing systems can be seen on a number of buildings here in Micronesia and they too take the extra step with extensive corrosion and weather tightness warranties that are so very important out here and of great

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benefit to the steel roofing customer. Other parts of the steel building from the gutter, louvers and curbs must not be overlooked and must be storm ready. Windows and doors should also be impenetrable to the harsh environments that island life can bring too. Finally, the most important piece of advice-design to code and install correctly. Take these steps and your prospective metal building will serve your needs for decades, will certainly save you in cost, and help reduce liabilities during a storm that may come through our area.

For more on metal building solutions for your organization, please contact GET, LLC. Our strategic partnership with MCR Guam Inc. and Metal Construction Resources LLP will ensure you have the best metal building for your needs. Drop us a line or call us at 671-483-0789 to discuss further.

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Society of

American Military Engineers

CORDIALLY INVITES YOU TO NISSAN SHOWROOM WHERE THE

EAST meets WEST Mix & Mingle enjoy the display artwork of Artists from Guam and Japan Ron Castro • Sakakibara Yasunori • Aoh Keizaburo Thursday, September 19, 2013 Infinity Art Gallery, Nissan Showroom 5:30 p.m. to 7:30 p.m. Island Business Casual * Please R.S.V.P. using the link below.

RSVP link: http://survey.constantcontact.com/survey/a07e837f4jchkxmgrxb/start


MEMBERBENEFITS

Foot Infections

Dr.Noel Silan, DPM ABMSP Skin infections are common in areas of humidity which predisposes people on Guam. For the purposes of this article I will concentrate on the lower extremity. 1) Infections on the foot can occur from cracks on the plantar aspect from either dry eczema or fungal infections. These infections can travel up the leg and cause warmth and swelling. Cellulitis of the leg is the medical term for this condition and it may be treated with oral or IV antibiotics. 2) Infections, bacterial can also occur between the toes of the feet. This is usually caused by excess moisture which cracks the skin. This is usually a superimposed

infection and starts out first with a fungal infection.

liberally , borrowed from a neighbor or friends.

3) Infections can also occur from foot punctures. Anything that penetrates the skin such as thorns from plants, nails or even hair can infect the foot. In some cases if not taken care of early this can lead to a bone infection.

For the Diabetic patient: 1) Never apply any form of heat to your feet

4) Infections of the leg can be caused by varicose ulcers or venous dermatitis. Varicose veins predisposes the lower extremity to dryness/cracks in the skin or just ulcers due to a breakdown in the venous system.

3) Don’t go barefoot

5) Hematogenous infections are blood borne and can travel to the lower extremity from other sources. These sources can be ear, nose, throat or other sources from the human body. The acute form of this condition can lead to bone infection/septic arthritis. This usually affects older or very young patients with immature bone. 6) Diabetic foot infections deserves a whole article in of itself and can be life/limb threatening. As with any infection it should not be taken lightly. Diabetic patients can have deficiencies in blood flow and can have issues with lack of sensation to their feet.

2) Never soak the feet for prolonged periods

4) Don’t perform bathroom surgery on your feet 5) Don’t cut your on toenails or have pedicures 6) Never use strong OTC medicines on your feet 7) Don’t allow your corns or callouses to go untreated 8) Never assume that sensation ot circulation in your feet is normal 9) Don’t wear shoes that are too tight or don’t fit 10) Never keep the feet too moist or too dry

7) As with any infection it should not be taken lightly. Infections can have many etiologies and needs to be treated specifically. Antibiotics should not be taken

Guam Foot Clinic

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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September 2013  

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

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