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Contractor’s Update AGC of Greater Milwaukee

z 10400 Innovation Dr., Ste. 210 z Milwaukee, WI 53226 z Fax 414-778-4119 z www.agc-gm.org

Phone 414-778-4100

May, 2011

Associated General Contractors of Greater Milwaukee Leading the Construction Industry Forward

INSIDE THIS ISSUE...

CM-BIM Candidates Needed for Brand New AGC-GM Credentialing Pilot Program! AGC of Greater Milwaukee, in conjunction with AGC of America, is excited to launch the Building Information Modeling Education Program. Building Information Modeling (BIM), one of the most exciting developments in the construction industry, is changing the way projects are built. This emerging process requires new mindsets and technological processes to move the industry forward. This program, developed in conjunction with leading BIM practitioners, technology firms and educators, is designed to successfully educate construction professionals at all experience levels on a range of topics they would encounter implementing and using BIM.

Courses The BIM Education Program is comprised of four courses, administered at multiple levels and organized by degree of difficulty to provide in-depth training on BIM. The components of this program are: •

BIM 101: An Introduction to Building Information Modeling (16 hours of instruction in August)

BIM Technology (16 hours of instruction in September)

BIM Contract Negotiation and Risk Allocation (16 hours of instruction in October)

BIM Process, Adoption, and Integration (16 hours of instruction in November)

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Contractor’s Update Published by: Associated General Contractors of Greater Milwaukee 10400 Innovation Dr., Ste. 210 Milwaukee, WI 53226 414-778-4100 Fax: 414-778-4119 www.agc-gm.org

2011 Board of Directors President, Jack Reichl, Reichl Construction Senior Vice President, Mark Sherry, Mortenson Construction Secretary Treasurer, Matt Bratzke, Opus Development Corporation Immediate Past President, George Minnich, Berghammer Construction National Director, Kevin O’Toole, Hunzinger Construction Director, Ron Becher, J.P. Cullen & Sons, Inc.

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Certificate of Management—Building Information Modeling (CM-BIM) The Certification of Management-Building Information Modeling (CM-BIM), the assessment-based certificate program tied to the BIM Education Program, is under development and will be available in late Fall 2011. Prepare for the credential now by attending the four BIM Education Program courses at the AGC of Greater MIlwaukee. Successful CM-BIM candidates demonstrate they have achieved the learning outcomes in the training by passing the CM-BIM exam and will have the ability to carry the designation behind their name.

Course Attendees The BIM Education Program is designed as a progressive program with an increasing level of difficulty within the courses. Together these are designed to give the student a broad understanding of the new processes required of BIM, a basic grasp of the technology as well as an overview of the legal and insurance issues relevant to BIM. Group Now Forming The AGC of Greater Milwaukee is seeking dedicated individuals to partipate in the launch of this brand new BIM Credentialing Program. Fifteen participants are needed to commit to taking each of these four classes this fall followed by a comprehensive credentialing exam. Please contact Heather Stair at 414-778-4100 or email hstair@agc-gm.org for more information!

Chmn. Ed. & Research Foundation, Rupert Kotze, Kotze Construction Co., Inc. Director, Tim Just, C.G. Schmidt Construction Associate Director, Mike Lochmann, Staff Electric Associate Director, Steve Freckmann, Dawes Rigging & Crane Rental

Executive Editor Mike Fabishak Associate Editor Heather Stair

Save the Date! AGC of Greater Milwaukee 2011 Annual Golf Outing Monday, August 8, 2011 Ironwood Golf Course Constructor’s Update ~ Page 2


RECORD NUMBER OF MEMBERS HONOR AWARD RECIPIENTS AT ANNUAL PAST PRESIDENTS’ AND AWARDS NIGHT! Many thanks to those who joined us at the Wisconsin Club on May 17th for our Annual Past Presidents and Awards Night; a night dedicated to recognizing those who Rupert Kotze of Kotze have made a commitment Construction & John Brennan to the AGC, construction of J.M. Brennan safety, and to the improvement of our great industry. This popular event saw record attendance this year with almost 250 people joining us to recognize our past presidents and award winners. It is because of the hard work and dedication of the individuals we honored that our industry continues to build up our communities and produce extraordinary projects despite the hardships our industry faces. Congratulations to the winners of the 2011 AGC Awards: · Harvey Peterson Award, Michael Byrne of Briohn Builders · Committee Chairperson Award, James Phelps of JCP Construction · Associate of the Year, Steve Freckmann of Dawes Rigging & Crane Rental · Gil Czaplewski Award, Jeff Panella of Opus Development Corp. Pioneer Award, William Luterbach of Jas. Luterbach Construction · Community Service Award, Earl Buford of BIG STEP · S.I.R. Award, George Minnich of Berghammer Construction

AGC President Jack Reichl presents Michael Byrne, of Briohn Builders with the Harvey Peterson Award

Congratulations to our Leadership in Safety Awards winners! A.J. Pietsch Co., Inc. Acoustical Floors of Wisconsin, Inc. Arwin Window Systems Inc. Automatic Entrances of WI Inc. Badger Lighting & Signs Burbach Insulation Co., Inc. Butters - Fetting Co., Inc. Carl’s Plumbing Services Inc. Chris Greene, Inc. Consolidated Doors Inc. Cosney Corporation Duwe Metal Products, Inc. Echo Construction Services, Inc. Edgerton Contractors, Inc. Hillside Damproofing Inc. J & M Electric Inc. J.M. Brennan, Inc. Lange Bros Woodwork Co Inc. Langer Roofing & Sheet Metal Inc. Lloyd Hamm Masonry, LLC Omni Glass & Paint Professional System Analysis, Inc. Pukall Co., Inc. Sanchez Painting Contractors Softer Lite Window Co. Thatcher Foundations Inc. Total Mechanical, Inc. Veit-Company, Inc. White Glove Environmental Winding Roofing Wm. M. Heinz & Sons, Inc. A.J. Heinen, Inc. Berghammer Construction Corp J.P. Cullen & Sons, Inc. James Luterbach Construction Company, Inc. Jens Construction Corp. JM Construction, Inc. Opus Development Corporation Stier Construction Inc. Wired Construction Cornerstone LLC Allen Construction Services Inc. B.A. Construction Badger Daylighting Buteyn-Peterson Construction Co. Inc. Clayton Pichler Construction Inc. DK Contractors, Inc. Henkel Kriegel Interiors J.F. Harrison Inc. Midwest Drilled Foundation & Engineering Petroleum Equipment, Inc. Premier Flooring Inc. Quality Ceilings Inc. Spectrum Contracting Corporation U.S. Insulation Wally King Masonry Western Erecting Inc. Willkomm Excavating & Grading, Inc. Kinateder Masonry Inc. Superior Masonry Builders, Inc. Joseph Lorenz Inc. Ray Stadler Construction Company, Inc. Steigerwald Construction Inc. Winghart Inc. Constructor’s Update ~ Page 3


Congratulations to our President’s Excellence in Safety Award Winners! 0 - 50,000 HOURS Gateway Concrete Forming Systems Inc. State Painting Co. Briohn Building Corporation Reichl Construction Inc. Selzer-Ornst Company Metal Buildings of WI, Inc. The Redmond Company ABCO Building Corporation Beyer Construction Common Links Construction 50,000 to 100,000 HOURS Hetzel Tile & Marble, Inc. MSI General Corp Dahlman Construction Company Superior Masonry 100,000 - 300,000 HOURS FJA Christiansen Roofing Co., Inc. Hunzinger Construction Kinateder Masonry VJS Construction Services Kraus-Anderson Construction Bane Nelson Inc. The Rockwell Group Over 300,000 HOURS Ver Halen, Inc. Pieper Electric Inc. C.G. Schmidt, Inc. Mortenson Construction AZCO Inc. Grunau Company Riley Construction Company Walsh Construction Co.

As many of you may know, six years ago, The AGC of Greater Milwaukee inaugurated its Mentor/Protégé program with the goal of expanding opportunities and providing knowledge, expertise and guidance to small, minority construction firms. The commitment and dedication shown by our volunteer mentors to their protégés has been astonishing. The response to this program was so great that AGC partnered with MMSD and Prism Technical to continue to expand and successfully operate this important initiative. Congratulations to the following Mentor/Protégé teams for their efforts!

Mentor, Jim Macejkovic of Building Service, Inc, Proteges, Jose Sanchez and Javier Sanchez of Sanchez Painting Last, but certainly not least, The AGC of Greater Milwaukee also honored Jeremy Sowin of Opus Development Corp. for graduating from the AGC-GM Supervisory Training Program! Many thanks to our sponsors for making the evening possible! Gold Level Mortenson Construction Whyte Hirschboeck Dudek Silver Level Dawes Rigging & Crane Rental Langer Roofing & Sheet Metal Common Links Construction Bronze Level C.G. Schmidt Kolb + Co Spancrete R & R Insurance

Above: Proteges from Pyramid Electric with AGC President Jack Reichl and Prisim Technical executives. Below: Mentor Jim Macejkovic from BSI with his Proteges from Sanchez Painting, AGC President Jack Reichl and Prisim Technical executives.

Mentor, Mike Lochmann of Staff Electric Proteges, Jim Gaillard and Tony Glenn of Pyramid Electric Mentor, David Frank of David J. Frank Landscaping Protégé, Jerome Powell of JP Landscaping

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Dedicated AGC Member Companies Drive Mentor/Protege Program Success for 5th Consecutive Year! The Associated General Contractors of Greater Milwaukee recently adopted a new logo featuring “AGC” in metallic letters, set against the Milwaukee skyline. David Frank, Jerome Powell, Below the image are Randy Crump and Mike the words, “Leading Fabishak, AGC CEO the Construction Industry Forward”. These words are the driving force behind literally every AGC initiative. One of the most important ways we can lead this great industry forward is to ensure the continuity of the skilled workforce which makes all construction possible while ensuring the strength and success of the employers who hire these skilled workers. To achieve this goal, The AGC of Greater Milwaukee developed a new initiative dedicated to cultivating and strengthening minority and women owned businesses in the construction industry. Developed in 2006 by the AGC, the Mentor/Protégé program quickly became a model program within the construction industry. This innovative program matches up large General Contractors and/or Subcontractors with emerging minority and women owned businesses. These mentor/protégé relationships allow selected participants to be advised and mentored by some of the most successful construction companies in the area. Protégés are able to get a rare first hand look at what goes into the planning and day-to-day operation of a successful firm. It also provides the important opportunity to take advantage of the many benefits the AGC has to offer in the areas of education, safety and business development. Word quickly spread about the successes of the Mentor/ Protégé program and demand for the program grew exponentially. In 2009, in order to continue to expand this critical programming, the AGC of Greater Milwaukee partnered with the Milwaukee Metropolitan Sewerage District (MMSD) to provide additional opportunities for protégés who sought to participate in this unique opportunity.

To date, ten minority and women owned construction companies have successfully completed the rigorous 18month AGC/MMSD Mentor/Protégé program, with over fifteen construction industry executives serving as mentors to these companies. As these protégé companies take root and grow from their mentor/protégé experience, they improve the communities around them and provide opportunities for much-needed, family-sustaining jobs in an industry that people are proud to participate in. The success of this program is truly a testimony to the skill, integrity and responsibility of the construction industry and the AGC member companies who have served as dedicated mentors throughout this program. They include: · Hunzinger Construction · Staff Electric · Berghammer Construction · Mortenson Construction · Jansen · Mared Mechanical · Fred Kinateder Masonry · J.P. Cullen & Sons, Inc. · Kotze Construction

· Payne & Dolan · C.G. Schmidt · Sprinkmann Sons Corp. · Building Service Inc. · David J. Frank · J.H. Findorff & Son · VJS Construction Services · Total Comfort · Miron Construction · Jens Construction

The AGC of Greater Milwaukee and these remarkable member companies are proud to be “Leading the Construction Industry Forward”. If you or somebody you know are interested in participating in the AGC/MMSD Mentor/Protégé program, please contact the AGC of Greater Milwaukee at 414-778-4100 or email Mike Fabishak, AGC-GM CEO, at mfabishak@agc-gm.org. From Left to Right: Mike Lochmann, Jim Gaillard, Tony Glenn, Prisim Technical Executives, and AGC CEO Mike Fabishak Constructor’s Update ~ Page 5


“BUILDING HEALTHY HEARTS” AGC-GM teams with American Heart Association to Promote Heart Health in the Construction Industry As you may be aware, the AGC Board of Directors voted to support the 2011 Building Healthy Hearts campaign that will focus on educating the industry on healthy living free of heart disease and stroke. It also provides the opportunity to bring a variety of building companies together on October 16th at the Metro Milwaukee Heart Walk to celebrate the success amongst colleagues, family and friends. Here in our AGC-GM office, we have agreed to build a team and set a goal to raise $1,000 and we hope your organization can do the same. On April 6th, the AGC hosted a Building Healthy Hearts meeting to kick-off the campaign. It was a very positive meeting with representation from Opus, Berghammer, MSI, J.F. Ahern, Lippert Group, Building Advantage, and Dawes Crane. They all understand the value this brings not just to their organizations, but the entire industry as a whole. A healthier workforce will lead to a safer workforce which we can all agree is priority #1. Andy Wiegman, formerly of Mortenson Construction and Rick Hext with J.F. Ahern will be co-chairing the campaign this year. The AGC applauds their leadership and commitment to BHH. We are aware that many of you already have energies focused on a variety of charities; however, the success of this campaign will not come from sponsorship dollars, but rather from employee engagement. Sadly, the construction industry is greatly impacted by heart disease. Consider this: construction workers have the highest rate of smokers among all occupations – one of the number one risk factors for heart disease. Additionally, forty-three percent of construction workers are overweight compared with thirty-five percent of all workers, greatly contributing to their increased risk of heart disease and stroke. The dollars raised through this campaign support the American Heart Association, an organization that impacts our community in a variety of ways, provides free tools and resources for companies looking to build a culture of health. Your company can participate with others in the industry by simply putting together a Heart Walk team within your organization. We strongly encourage you to contact Nate Nelson with the American Heart Association. Nate can be reached at 414-227-1451 or by email at nate.nelson@heart.org. Thank you for your consideration on this unique opportunity to make a positive impact in our industry.

AS A UNION CONTRACTOR, DO YOU KNOW YOUR MULTIEMPLOYER PENSION FUND WITHDRAWL LIABILITY? YOU SHOULD! Contractors who contribute to multiemployer pension plans by virtue of obligations created by union contractors should be aware that they may have additional financial liability (over and above the contribution amounts stated in the contract) if the plan is or becomes under-funded. While the possibility of withdrawal liability has been in existence since 1980, the incidence of withdrawal liability has accelerated in the last several years due primarily to weakness in the economy. Check out the Pension Fund’s website at www.thepensionfund.com for details on the fund. For more information on this important matter, please contact Mike Fabishak, CEO at 414-778-4100 or email mfabishak@agc-gm.org.

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AGC-GM Board of Directors Endorse MY Milwaukee County County Initiative IMAGINE a Milwaukee County that is the destination for new businesses, young professionals and tourists. Imagine a vibrant community with world-class parks and culture with dedicated sustainable funding, people moving effortlessly to work, to play and to learn through our top in class transit system. Imagine a County in which families facing mental health or other challenges can count on a safe environment meeting the national standards of access, quality, recovery and accountability. Imagine all of this made possible through a fiscal efficiency that is the envy of municipalities throughout the U.S. Working together, we can make this bold vision for Milwaukee County a reality. But it will require bold change. If we don’t make changes today, the future looks grim. Parks will close, bus routes will end and families in distress will not get the help they need. Our Milwaukee will grow smaller and smaller as people and companies leave. Why? Because, Milwaukee County is facing unprecedented fiscal and structural challenges, including the growing cost of healthcare and pension benefits that is projected to take EVERY DOLLAR of the County’s property tax levy by 2016. The short-term “solutions” and one-time “fixes” have been exhausted. Without real reform, the County will be forced to eliminate whole areas of service to our community. THE TIME TO ACT IS NOW. While the County’s fiscal and structural challenges are enormous, so is the opportunity to make our vision for Milwaukee County a reality. We believe the County and State need to work together to achieve real reform. HOW TO TAKE ACTION Everyone has a role in this effort, and it is no small endeavor. We are asking you to join us in taking action to advocate for real change for Milwaukee County. You can look up and contact your representative by email or phone, share your view with local media, share your Milwaukee County story and invite your friends to visit the website to learn more or visit www.makeityourmilwaukee.com. Constructor’s Update ~ Page 7


Congratulations to 2010-2011 Marquette AGC-GM S.I.R. Scholarship Winner - Frank Gorham “My main focus as an Engineering student at Marquette University revolves around the study of Construction Engineering and Management. The industry is extraordinarily fascinating to me. The amount of planning, coordination and hard work that it takes to go from planning stages in a project to completion is astounding. The industry forces the project managers to solve various problems on and off the jobsite, constantly working together as a team to complete a common goal. Outside of school I hold leadership roles in two clubs that I am very passionate about. I am vice president of Marquette’s AGC student chapter “Builders Coalition of Marquette University”. Otherwise I enjoy completing community service with Best Buddies and Habitat for Humanity, as well as spending time with my family. After graduation, I hope to someday become a project manager for a major construction company and work on challenging yet exciting projects.

Find us on Facebook! The AGC of Greater Milwaukee is continually searching for ways to enhance member services and distribute information more quickly and efficiently. In order to engage more members in a timely manner, the AGC-GM has recently launched our own Facebook page! “Like” us on Facebook and you’ll hear about exciting upcoming events, learn about new exclusive member discounts being offered, and what training opportunities are coming your way. You’ll also be able to link to the latest industry news as well as view photos from recent events. Check out our new page and give us your feedback!

Advantage Refrigeration LLC 16200 W. Glendale Dr. New Berlin, WI 53151 Quarles & Brady LLP 411 E. Wisconsin Ave. Milwaukee, WI 53202 Superior Equipment and Supply 4550 S. Brust Ave. Milwaukee, WI 53235 Standard Roofing Co., Inc. 1820 S. Kinnickinnic Ave Milwaukee, WI 53204 M3 Insurance Solutions, Inc. 3113 W. Beltline Hwy Madison, WI 53708 Pichler Painting 16480 Burleigh Place Brookfield, WI 53005 Sharper Construction LLC 600 W. virginia St., Ste 100 Milwaukee, WI 53204 Prism Technical, Management & Marketing Services 6114 W. Capitol Dr., Ste 200 Milwaukee, WI 53216 Dillett Mechanical Service 21625 Doral Rd Waukesha, WI 53186 Constructor’s Update ~ Page 8


WHAT IF OWNERS EVALUATE TRAINING LIKE THEY EVALUATE SAFETY? The Construction Users Roundtable (CURT), a major owners’ group, is developing a workforce development assessment that contractors will have to fill out as part of their prequalification process. Attendees at AGC’s 92nd Annual Convention, held recently in Las Vegas, received a preview of the assessment and a detailed analysis of how it will work. Sponsored by the AGC Training, Education & Development Forum and the National Center for Construction Education & Research, the 90-minute session also presented the genesis of the national Choose Construction

to assess each contractor’s commitment to workforce develop, skills training and upgrades with an eye toward measuring the return on investment in terms of turnover, absenteeism, safety, rework, and productivity. The assessment is neutral on labor posture and uses a third party to collect and audit information. Each contractor’s final assessment will be a simple grade – A+, A, A-, B+, B, etc. The speakers also outlined the new Choose Construction Initiative (CCI, an initiative to implement a grassroots recruitment/workforce development effort that enhances the image of the industry to attract and train new workers. The CCI will allow state and local partners to leverage

“Individual contractors must recognize the necessity and benefits of training their employees and be willing to invest in it. … Owners should require contractors to invest in training and maintain the skills of their workforce as a condition of employment.” Initiative, an effort endorsed by AGC to enhance the industry’s image, and recruit, train, place, and retain trainees, is set to launch. Speakers during the session were Don Whyte, President, National Center for Construction Education & Research; Steve Greene, Vice President, NCCER; and Gerald Sprentall FMS Program Manager, TI Contracts, Intel Corporation, Inc., and chairman of CURT’s Workforce Development Committee.

nationally developed themes, collateral, resources and programs to promote and market the construction industry as a desirable and rewarding career of choice. Recruitment targets include: entry-level workers, displaced and under-employed workers, under-skilled and uncertified workers.

The workforce development assessment – a joint CURT/ NCCER project – is the result of a 2004 CURT report “Confronting the Skilled Construction Workforce Shortage” that stated: “Individual contractors must recognize the necessity and benefits of training their employees and be willing to invest in it. … Owners should require contractors to invest in training and maintain the skills of their workforce as a condition of employment.”The assessment, several years in the making, is currently being piloted by several dozen general contractors nationwide. The goal is Constructor’s Update ~ Page 9


HOW CLEAN IS YOUR DIESEL FLEET? Nonroad Diesel Emissions Information Studies show that diesel exhaust has serious health impacts – it can cause cancer and damage the lungs. However, municipalities and construction contractors can reduce diesel emissions by using cleaner fuels or installing pollution control devices on existing nonroad (off-highway) diesel engines. As a result, voluntary retrofit programs are being promoted nationwide to reduce harmful emissions from nonroad diesel engines. The Diesel Exhaust Problem Diesel exhaust contains pollutants including fine particulate matter (PM), hydrocarbons, and nitrogen oxides (NOx) that damage the lungs and may lead to premature deaths. Diesel exhaust contains other toxic chemicals such as benzene and polynuclear aromatic hydrocarbons that are known or suspected of causing cancer. Those people most at risk include children and the elderly and people with existing heart disease, lung disease, or respiratory problems. Nonroad diesel engines are one of the largest contributors to this increasing pollution problem. What are Nonroad Diesel Engines? “Nonroad” includes all internal combustion vehicles and machinery that perform a task other than transporting people or materials on highways or streets. Also referred to as “off-road” or “off-highway”, the nonroad category includes construction equipment such as bulldozers, excavators, graders, and backhoes. It also includes outdoor power equipment and farm or agricultural equipment. A typical piece of construction equipment such as a 175 horsepower bulldozer emits as much NOx and particulate matter as 26 new cars today. The Diesel Exhaust Solution New Nonroad Diesel Engines · The federal government has proposed a program for new engines to reduce PM and NOx emissions by more than 90 percent through emission control technologies and low sulfur fuel requirements to be phased in over the next several years. · USEPA estimates that by the year 2030, reduced diesel emissions could prevent 9,600 premature deaths each year, eliminate almost a million work days lost per year, and result in yearly savings of $81 million. Existing Nonroad Diesel Engines The existing fleet of nonroad diesel engines will not be subject to the new regulations, yet they may remain in operation for another 25 to 30 years. Nonroad diesel engines built since 1996 have had to comply with modest emission standards, with the focus on reducing NOx emissions. Emission standards have generally not addressed PM emissions. Municipalities can have a significant impact on reducing nonroad diesel emissions because they control a large portion of yearly construction activities, either through their own equipment or that of contractors. Several options are available to owners and operators of nonroad diesel engines to reduce emissions. These include: •Retrofitting engines with pollution control devices •Replacing old engines with new engines •Using lower sulfur fuels or fuel additives (see below) •Limiting the time that diesel engines idle •Requiring contractors to use retrofitted equipment on construction projects.

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•Pollution control devices include oxidation catalysts that oxidize or burn harmful gaseous emissions & particulate filters that trap PM. Costs for retrofitting engines with pollution control devices vary depending on the technology used and the engine being retrofitted. Nonroad Diesel Fuel Sulfur can contaminate high-efficiency emission control systems used on diesel engines. On average, nonroad diesel fuel has sulfur levels of about 3,400 parts per million (ppm). On-road diesel fuel is currently limited to 500 ppm sulfur. Off-road equipment can use this on-road fuel or ultra low sulfur fuel which contains less than 15 ppm sulfur. Use of diesel fuel containing lower sulfur levels will provide immediate public health benefits by reducing particulate emissions. Also, the reduced sulfur content will lower the cost of maintaining engines.

The following list outlines several concepts that fleet owners should review to improve the odds of creating a successful diesel retrofit project. •Identify and characterize the fleet and group the engines into subfleets based on similar characteristics. •Understand which retrofit technologies are good choices for the engines in the fleets. (USEPA’s Verified Technology List provides a table of all retrofit technologies verified to produce measurable emissions reductions. New technologies are added to this list periodically) •Calculate the tons of emissions reductions the retrofit project can generate. USEPA’s Emissions Reductions Calculator allows users to investigate many different scenarios for the retrofit. In selecting equipment to be retrofitted, fleet owners must consider several factors, as follows: •The age of the equipment: older equipment generally produces more emissions than newer equipment. •How much the equipment is used: greater emission reductions are usually realized by retrofitting equipment that has a high use rate. •The emission profile for the engine: emission profiles for engines 1998 and newer can be obtained from the EPA.

Several options are available to fleet owners and operators who are considering improving the emission performance of their diesel engines. Voluntary Retrofit Program Information Proposed standards do not address existing nonroad diesel engines, and equipment with these existing engines could be in service for the next 25 to 30 years. As a result, strategies are being pursued to make existing diesel engines cleaner, such as the USEPA’s Voluntary Diesel Retrofit Program. To encourage implementation of voluntary diesel retrofits at the community level, The EPA is providing grants to area municipalities to develop nonroad diesel retrofit programs. Designing a Retrofit Program Several options are available to fleet owners and operators who are considering improving the emission performance of their diesel engines. These options include retiring older engines; converting engines to run on cleaner, alternative fuels like compressed natural gas; and retrofitting older engines with modern emission control. In considering options, fleet owners and operators should evaluate the cost and benefits of each option.

If emission profiles are not available for specific engines, several generalities can be applied to help determine which pollutants are potential targets for reduction: •Engines that operate at higher loads may be good candidates for NOx reduction because their engines get hotter. •Vehicles with larger displacement engines may be good candidates for HC reduction, especially if they operate at low loads •Vehicles with fast or frequent load fluctuations may be good candidates for PM reduction. •Engines that use excess oil (more than 1 percent of the fuel volume) should be rebuilt before they are retrofitted. In addition to retrofitting municipal fleets, local governments may soon require that construction contractors used for public works projects also implement measures to reduce diesel emissions. Constructor’s Update ~ Page 11


THE MADISON REPORT By: Mike Fabishak

Building Commission Projects Added To Budget Bill The Building Commission’s recommendations for the 2011-13 building program are being incorporated into the state budget currently being reviewed by the Joint Committee on Finance. The building program totals just over $1 billion, an impressive sum in these challenging economic times for the state. Nearly half of that total is University of Wisconsin projects and at a recent meeting UW officials thanked AGC representatives for their efforts in support of the program, including the release of the just-completed construction economic impact analysis. UW Seeks More Independence In Construction Program The Governor’s proposed budget contains an “autonomy initiative” that would make UW-Madison independent from the rest of the UW system. Part of that proposal would give the flagship campus the authority to “manage all aspects of the construction process” for those projects funded solely from gifts, grants or program revenues, with no state revenue support. Recently the rest of the UW system offered an alternative proposal that has some of the same features for all the campuses, including the ability to manage building projects independent from state control and management under the Division of State Facilities (DSF). Even though it is unclear at this point whether either of these options will survive in the final budget, we are nonetheless currently meeting with UW representatives to clarify and define what this new flexibility might look like, particularity in the bidding and project delivery areas. Our goal is to establish guidelines and certainty under any new system that will protect the interest of contractors. More to follow on this subject.... Bill Voiding Milwaukee Paid Sick Leave Passes This week the Legislature passed and the Governor has indicated that he will sign into law legislation (SB 23) that would invalidate local ordinances such as Milwaukee’s sick leave mandate passed in the fall of 2008 and tied up in litigation since. We thank the majority party in the Legislature for recognizing the detrimental effect of mandates such as this at the local level on the competitiveness of the employers who are impacted, some who have already chosen to relocate to more business-friendly communities. In the case of contractors and other businesses whose employees periodically work in the jurisdiction of the intrusive regulation, it posed a complex administrative burden as well as additional costs. Prevailing Wage Roll-Back Expected A bill is ready to be introduced to repeal an expansion of state prevailing wage passed in 2009. Among other things the 2009 legislation lowered the project threshold to $25,000 (was $234,000 multi-trade and $48,000 single trade), applied the law to certain private projects, and created new record-keeping requirements. After Labor prevailed upon the former Democrat majority in the Legislature to pass those changes, Republican legislators began getting complaints from municipalities and others about the new law. Some Assembly representatives have even advocated for an outright repeal of the law, so a roll-back may actually represent a compromise position. We are advocating for a reasoned, cautious approach to the subject and a process for considering any changes to current law.

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Contractors Update - May, 2011