Navigating the Economic Forecast
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BAKERSFIELD
3340 Allen Rd.
Bakersfield, CA 93314 (661)631-5777
CONCORD
5151 Port Chicago Highway Concord, CA 94520 (925)822-0366
FRESNO
5704 S. Toyota Place Fresno, CA 93275 (559)442-8989
HAYWARD
4125 Breakwater Avenue Hayward, CA 94545 (510)786-9506
RENO 12905 Old Virginia Road Reno, NV 89521 (775)348-0140
SACRAMENTO
8565 Elder Creek Road Sacramento, CA 95828 (916)383-7475
SALT LAKE CITY
1135 S. Pioneer Road Salt Lake City, UT 84104 (801)886-0586
SAN JOSE
2969 Daylight Way San Jose, CA 95111 (408)224-1052
SAN LUIS OBISPO
635 Tank Farm Road San Luis Obispo, CA 93401 (805)543-0113
TURLOCK
2800 N. Golden State Blvd. Turlock, CA 95382 (209)632-5084
SANTA ROSA
3963 Santa Rosa Ave. Santa Rosa, CA 95407 (707)523-2350
SAN FRANCISCO
251 Shaw Road
South San Francisco, CA 94080 (415)642-2350
INFRASTRUCTURE WE BUILD
2024
President...................................Kevin Hester, McGuire and Hester VP/President-Elect.........Kurt Eddy, Pavement Recycling Systems, Inc.
Secretary/Treasurer.......Juan C. Arrequin, Bay Line Cutting & Coring, Inc.
Sec/Treas-Elect.........................Greg Goebel Jr., Goebel Construction, Inc.
UNITED CONTRACTORS BOARD OF DIRECTORS
KELLY ATTEBERY, F & M BANK; TOM BARR, GHILOTTI BROS., INC.;
DALE R. BREEN, MIDSTATE BARRIER, INC.; BRYN BURKE, DEES BURKE ENGINEERING; SEAN CASTILLO, TORO ENTERPRISES, INC.; RITA VIGIL FERGUSON, G & F CONCRETE CUTTING, INC.; GARRETT FRANCIS, GUARDIAN TRAFFIC SOLUTIONS; MICHAEL GATES, DESILVA GATES CONSTRUCTION, LLC; ALAN GUY, ANVIL BUILDERS; MATT LOVINGIER, JMH ENGINEERING & CONSTRUCTION, INC.; MICHAEL PRLICH, MIKE PRLICH & SONS, INC.; KEVIN REIMERS, WOODRUFF-SAWYER & CO.
UCON LEADERS | UNITED CONTRACTORS COMMITTEE CHAIRS ASSOCIATES: KELLY ATTEBERY (ASSOCIATE DIRECTOR), F & M BANK. | KEVIN REIMERS (ASSOCIATE DIRECTOR-ELECT), WOODRUFF-SAWYER & CO. CALTRANS: MICHAEL GHILOTTI (CHAIR), GHILOTTI BROS., INC. | LEGISLATIVE: ROB LAYNE, (CHAIR), O.C. JONES & SONS, INC. | POLITICAL ACTION (PAC): GEORGE FURNANZ (CHAIR), STACY WITBECK; STEVE CONCANNON (VICE-CHAIR) PAVEMENT RECYCLING SYSTEMS, INC. | SAFETY & INSURANCE: KEITH OXFORD, (CHAIR), MONTEREY MECHANICAL COMPANY | SF CITY CONTRACTOR LIAISON: MIKE GHILOTTI (CHAIR), GHILOTTI BROS., INC., MIGUEL GALARZA (CHAIR), YERBA BUENA ENGINEERING & CONSTRUCTION, INC. | SCHOLARSHIP: TRONY FULLER, (CHAIR), WEST COAST SAND & GRAVEL | REGIONAL EXECUTIVE COUNCIL: MICHAEL PRLICH (CHAIR), MIKE PRLICH & SONS, INC.; GARRETT FRANCIS (CHAIR), GUARDIAN TRAFFIC SOLUTIONS
UNITED CONTRACTORS STAFF
MARK BRESLIN, CHIEF EXECUTIVE OFFICER; EMILY COHEN, EXECUTIVE VICE PRESIDENT; TEJEL PATEL, EXECUTIVE ASSISTANT TO CEO; VICTOR SELLA, VICE PRESIDENT OF LABOR RELATIONS; CLAY O’NEAL, REGIONAL VICE PRESIDENT, SOUTHERN CA OPERATIONS; RAY BACA, REGIONAL DIRECTOR, SOUTHERN CALIFORNIA; RUBY VARNADORE, SENIOR LABOR CONTRACTS MANAGER; DILPREET MAYALL, LABOR CONTRACTS MANAGER; LUCIA MIXON, CONTRACTOR MEMBER SERVICES, SOUTHERN CA; SANDRA KAYA, ADMINISTRATIVE SPECIALIST; MELISSA GUTWALD, VICE PRESIDENT OF FINANCE & OPERATIONS; DENISE RAMIREZ, ONLINE SERVICES MANAGER; EMMY MCCONNELL, SENIOR ACCOUNTANT; MICHELLE HANNIGAN, BOOKKEEPER; GABRIELLE GONZALEZ, OFFICE ADMINISTRATOR, SOUTHERN CALIFORNIA; ANGELICA GOUIG, DIRECTOR OF EVENTS & EDUCATION; CHRISTINE TRAINA, EVENT MANAGER; RACHEL ORAA, EVENT ASSISTANT; AVANTI MEHTA, EDUCATION ASSISTANT; MICHELLE VEJBY, MARCOM MANAGER; EDDIE BERNACCHI, UCON CHIEF LOBBYIST; MIKE DONLON, CHIEF SAFETY CONSULTANT; DREW DELANEY, MIKE BUCKANTZ, REGULATORY CONSULTANTS; DAMIAN BREEN, REGULATORY CONSULTANT
IN THIS ISSUE
UP FRONT
Trust as a Business Asset and How to Steal $5 Million Dollars by Mark Breslin | UCON CEO
LABOR
UCON’s Labor Relations & Member Services Team
Mid-Year Review: Labor Relations by Victor Sella | UCON Vice President of Labor Relations
FACES
NorCal PAC Event
United for Impact
MARKET REPORT
Outlook for Construction in California by Mark Schniepp, PhD | California Economic Forecast
Construction Market Forecast
CYBER SECURITY
Building Defenses Against Cyber Risk in the Construction Sector by Woodruff-Sawyer & Co
more inside
RED TAPE
The Ways Contractors Get in Trouble with Local Air Districts—and How to Avoid Them! by Damien Breen, UCON Regulatory Consultant, Environmental Communication Strategies
By Mark Breslin UCON CEO
TRUST AS A BUSINESS ASSET AND HOW TO STEAL $5 MILLION DOLLARS
UCON is not in the construction business.
UCON is not in the association business.
UCON is not in the not-for-profit business.
We are in the Trust Business. And that is a currency harder to earn and more important than dollars.
In a world and business where self-interest governs, the person or organization that stands out is the one that cares about you. Shows an interest in you. Places a priority on you. Places your interests on a par with their own. Why? Because it is rare, especially in a low-trust industry like construction.
As an organization that is not in the business of profit (UCON is a CA non-profit C(6) corporation) an alternative currency and measure of success needs to be included. That’s not to say that we don’t need resources, but those only come if we generate a more important metric. And that is Trust.
What does that look like at UCON? Well, in these pages, you will see the faces of those who attended the UCON Political Action Committee (PAC) fundraiser at my home again this year. Want to talk Trust? Where else can you find 100+ of the most committed contractors and associates in the industry generating more than $250K at a backyard
Trust. Let’s face it, trust in the construction industry isn’t the norm—from the top to the field. Integrating integrity, empathy, and effectiveness makes the difference.
party? That’s not people looking to “pay for services rendered.” That is a whole bunch of people investing Trust in UCON and saying, “Hey, we know you will do the right thing with my money. My time. My support.”
That Trust is what is the underlying driver of UCON. Growth at 15% a year? Trust. Finding other associations that want to merge with UCON? Trust. Unions that see us as their main partners to deal with the challenges of the market? Trust. Legislators who are looking for allies that are solid and long-term? Trust. Let’s face it, trust in the construction industry isn’t the norm—from the top to the field. Integrating integrity, empathy, and effectiveness makes the difference.
Finally, you don’t get Trust handed to you in this business. And our reputation has to be bulletproof if we are going to serve you and earn that Trust. What does that look like in the real world? Last week a contractor who was not a member called me for some complex union advice. I spent a good amount of time talking to him. At the end, I asked him, “So why did you call me on this?” He responded, “I keep hearing that you guys at UCON just GET SHIT DONE.” He’s signing up this week. Trust.
In closing let’s spend a minute on stealing $5 million dollars in the title of this article. We have some tips in this edition on cyber security (see pages 30-32). One tip you might consider is that the construction industry is becoming one of the top targets for cybercrime. One member I know had hackers lock them out of their entire system, including accounting and payroll, for more than a month. They (insurance company) had to hire a cyber-hacker-negotiator to get it all back. But the one that got me was one of our members told me that they had a $5 million payment from a public agency due. And hackers impersonated the financial people at the company. The agency cut the $5 million e-payment to the hackers. At the very last minute, the bank figured out something wasn’t right and caught it. The member told me that the agency informed them that if that payment had been made, they would not have paid them another $5 million and would have forced the contractor to battle it out over time. How to steal $5 million? Find a construction company that doesn’t focus on cyber security. Maybe it’s time to sharpen up on that front.
UCON’S LABOR & MEMBER SERVICES TEAM
Helping You Navigate Labor, Operations, HR & Payroll Minefields
Across California
United Contractors Labor & Member Services team is a valuable resource for contractors statewide, assisting key management, administrative and field staff on a daily basis.
With over 100 years of combined construction labor relations experience, UCON’s Labor & Member Services team will help you navigate Labor, HR, Payroll, and much more. We handle thousands of member calls every year, and are committed to doing our best to respond the same day. If we don’t have the answer, we will find it. Meet our team and learn our areas of expertise:
Victor Sella Vice President of Labor Relations
vsella@unitedcontractors.org (510) 362-6959
Victor oversees labor relations advocacy, contract negotiations, and support services to UCON’s 480+ contractor members across the state. By providing labor, operations, and human resources consulting to our members, Victor gets the satisfaction of resolving people’s problems and improving contractors’ abilities to get work done and stay competitive.
Clay O’Neal
Regional VP - Southern CA
coneal@unitedcontractors.org (657) 439-4545
Clay is the Regional Vice President for Southern CA, leading member relations across the region, including labor, agency, and legislative matters. He is dedicated to cultivating genuine relationships and improving the business environment for UCON’s members across Southern California.
Ruby Varnadore, PHR Senior Labor Contracts Manager
rvarnadore@unitedcontractors.org (925) 362-7310
Ruby oversees association labor contracts and supports UCON’s contractor member companies and their teams. Her main focus is researching and answering questions and inquiries related to contract interpretation, payroll, prevailing wages, employment law, and more.
Lucia Mixon
Contractor Member Services, Southern CA
lmixon@unitedcontractors.org (925) 362-7306
Lucia provides operational support and assistance to UCON’s contractor members. She assists in resolving issues and answering questions involving labor relations, collective bargaining agreements, grievances, labor disputes, payroll, and pre-jobs.
“RJS & Associates made the decision to change our construction trade association relationship in 2023. It quickly became evident that UCON’s outstanding reputation was due to the skill and depth of their leadership team. Right out of the gate, the UCON team has provided us with a wealth of information ranging from union contracts, payroll processing, HR, legal and many other valuable topics. They consistently respond with fast, accurate and insightful answers to our difficult questions.”
— Scott Shepherd, RJS & Associates
How We Can Help You
Our team is available to help all key members of your team – executive managers, payroll, HR, project managers, estimators, superintendents, etc. Areas that we regularly assist our member with include:
• Labor disputes and grievances
• Trust Fund audits, delinquencies and questions
• Prevailing wage compliance, including apprenticeship
• Contract interpretation for payroll and job manning/ bidding – shift work, subcontracting, etc.
• Hiring, discipline and termination
• Pre-job conferences and other union discussions
• Union substance abuse policies
Dilpreet Mayall Labor Contracts Manager
dmayall@unitedcontractors.org (925) 303-4388
Dilpreet provides key guidance in contract interpretation and other consultation services to UCON’s contractor member companies and their labor relations, operations and human resources departments.
Sandra Kaya
Labor & Member Services Administrative Specialist
skaya@unitedcontractors.org (925) 725-6695
Providing administrative and project support to the Labor & Member Services team, Sandra assists in ensuring high-quality member service, and the best member experience possible.
“I’m very grateful and thankful that I have UCON as my number one resource. In our office we say this a lot: ‘Let’s check with UCON.’ Over the last 20 years, I don’t recall a time they couldn’t help our team navigate through a situation.”
— Audrey E. Kaili, Esquivel Grading & Paving, Inc.
By Victor Sella, UCON Vice President of Labor Relations
MID-YEAR REVIEW: UCON LABOR RELATIONS
UCON’s focus for 2024 centers on our core labor relations priorities (1) expanding union contractor influence, (2) increasing union contractor competitiveness, (3) growing the union construction industry through partnering, and (4) training the nextgen of contractor leaders.
Here’s a quick review of what’s happened and what’s ahead in 2024:
OWNER/AGENCY UPDATES
Critical Caltrans Alerts: Special Shift Rates & On/Off Haul of Equipment. UCON recently received reports that Caltrans compliance representatives throughout the state have been (1) denying use of special shift rates for weekend work and (2) expanding prevailing wage coverage to trucking activities not typically covered. UCON immediately engaged with Caltrans on these issues to eliminate the issue or create guidance on how to resolve them. If these issues arise for you, reach out to UCON or check out our Contract Resources Library for guidance memos on these subjects.
their businesses in the state of California for decades. If you’re running into issues working on or bidding for these projects, reach out to UCON for assistance to determine your best course of action.
UNION UPDATES
Laborers (N. CA) 41 County Landscape and 3 County Striping Survey. UCON has been working closely with the Northern California Laborers for the past 2 years to
trigger a DIR survey claiming landscape and striping work from the Plumbers and Painters, respectively. After a year of collecting data, the DIR finally agreed earlier this year to open surveys for these scopes, the winner of which will be the exclusive craft to set the prevailing wage rate for said scope in those counties. That means the Laborers signatories will hopefully soon have their agreement set the prevailing wage, instead of following the rates of another craft. Updates to follow.
Dealing with Jurisdictional Mandates from PG&E, SCE, and SDGE. In 2023, PG&E and other InvestorOwned Utilities (IOUs), like SDGE & SoCal Edison, advanced directives requiring the use of IBEW-signatory companies and IBEW-represented workforce on various scopes of work, including traffic control and the undergrounding of power lines. These mandates not only conflict with longstanding jurisdictional lines of, for instance, the Laborers and Operating Engineers, but also the way most union contractors have run
OE3 Jobsite Monitoring re Sweepers. In May, OE3 issued a letter regarding their compliance views on use of sweepers who are members of the Teamsters union. If you use OE3 or Teamsters sweeper subs, the letter is important to understand from a bidding and compliance perspective going forward. If you did not see the letter or need guidance, reach out to UCON.
Camera Installation in Company Vehicles. If you have installed or plan to install cameras in your company vehicles or equipment, please note that installation of cameras and related data collection and disciplinary
Photo: Kiewit Infrastructure West Co.
policies may trigger an obligation to bargain with the union, depending on the circumstances. If you’ve already installed or plan to install cameras, reach out to UCON to make sure you proceed in a legally sound manner. In addition, earlier this year, UCON signed a “me-too” to an MOU negotiated between SCCA and OE12 regarding the installation of cameras in road going vehicles and related data recording, retention, and training / disciplinary policies.
CORE BUSINESS
UCON Installs the Next Generation of Labor Relations Talent. One of the core values of UCON is to develop and empower the next generation of leaders in the construction industry, which is why we are proud to announce updates to our Labor Executive Committee (LEC) co-chair positions. Our LEC makes all UCON’s labor relations strategy and policy decisions across the state and consists of our chief negotiators for each craft.
The individuals stepping into these roles have extensive experience and expertise in their fields, and they have each demonstrated their dedication to UCON’s mission and vision of advancing the industry. We look forward to working with them and supporting them in their new roles:
Continued on next page
Photo: Royal Electric Company
Building Excellence in People and Projects Westlake
MID-YEAR REVIEW: UCON LABOR RELATIONS (CONT’D)
WHAT’S UP AHEAD?
• Carpenters (N. CA) Co-Chair: Brian Gardner, Kiewit Infrastructure West, Co.
• Pile Drivers (N. CA) Co-Chair: Dermot Fallon, Foundation Constructors, Inc./Foundation Pile Inc.
• Pile Drivers (N. CA) Co-Chair: Dave Riccitiello, Golden State Bridge, Inc.
• Teamsters (N. CA) Co-Chair: Dave Greco, Teichert Construction
• Cement Masons (N. CA) Co-Chair: Catherine Moncada, Granite Construction Company
• Cement Masons (S. CA) Co-Chair: Maizer Ouijdani, The Conco Companies
• Teamsters (S. CA) Co-Chair: Brandon Pensick, Ferreira Construction Co., Inc.
Labor Team Webinars. UCON’s Labor Team is proud to announce our 2024 webinar series, covering a range of critical topics, like subcontracting, prevailing wage compliance, dispatching and hiring, etc. These webinars are tailored for operations managers, project managers, estimators, HR professionals, and filed leadership to master the complexities of your union agreements. To get a personalized training schedule, simply reach out to the UCON Labor & Member Services Team:
• CBA Payroll Rules (N. CA or S. CA) – 1 hour
• PLAs, Pre-Jobs, & Jurisdictional Disputes – 30 min
• Skilled & Trained Workforce – 30 min
• CBA Subcontracting Rules (N. CA or S. CA) – 30 min
• Best Practices: Dispatching, Hiring, Lay-offs, & Termination (N. CA or S. CA) – 30 min
• Basics & Best Practices: Apprenticeship – 45 min
• Mastering Prevailing Wage: CPRs to 3rdParty Compliance – 45 min
Industry Partner Meetings. In case you’ve missed it, UCON already held a partnering meeting with Laborers (S. CA) in February, and meetings with Carpenters (S. CA) and Masons (S. CA) in June; Laborers (N. CA) and OE3 are in scheduling mode for Q3. Connecting with union reps outside of grievances, conflict, or negotiations for the purpose of finding joint solutions to industry problems can generate tremendous good will and relational benefits. Interested in learning more or participating? Reach out to UCON to join the craft committee(s) for the craft(s) you’re signed to, and we’ll get you on the list.
Multi-Association Bargaining Training. UCON’s credibility and influence ultimately stem from the decisions, vision, and policies set and driven by our contractor leaders. It therefore follows that our future successes will be determined by how well we train and develop our next-gen leaders to carry the industry forward, especially as so many of our experienced industry leaders and negotiators retire.
In service to this point, UCON will be partnering with a nationally recognized union negotiations consulting group to lead a 2-day training for up to 30 contractors in Q4 2024. Most notably, UCON will invite other associations to send key negotiators to participate in the training for the purpose of creating more cohesion and skill across all contractor negotiators, regardless of association affiliation. In addition, the training serves to create a multi-association bargaining template for future negotiations.
GET INVOLVED!
For most, labor relations is viewed as something other people do. But for those who lean in, it’s a primary method to expand your network, sharpen your leadership skills, enhance your company’s competitiveness, and influence the industry. Interested in getting more involved or holding an appointed position on a Trust, JATC, or industry organization? Contact Victor Sella, vsella@unitedcontractors.org, (510) 362-6959.
EQUIPPED WITH SUBSITE PIPE & CABLE LOCATORS FOR “PRECISE” POTHOLES AND UTILITY LOCATES. TWO PERSON OPERATION CAN OUTDO THE WORK OF MULTIPLE TRUCKS, AIR COMPRESSOR AND MINI EXCAVATORS.
FEATURES:
COMPACTION TOOLS
FASTER EFFICIENT
AIR EXCAVATION
HYDRAULIC JACKHAMMERS HYDRO EXCAVATION
SOFT DIG, WET OR DRY
FULLY TRAVERSING, BUMPER MOUNTED, ASPHALT OR CONCRETE, CORING UNIT
STREET LEGAL FULLY LOADED 7 YARD CAPACITY
DAYLIGHTING POTHOLING POLE REPLACEMENT
MEMBERS RAISE NEARLY $300K FOR UCON’S PAC
Thank you to everyone who sponsored UCON’s 2024 Political Action Committee (PAC) fundraisers. Our Northern CA event took place on May 30 and was hosted at the home of UCON CEO Mark Breslin and his wife Drea (thank you so much)—and once again, broke records with over 100 guests.
The UCON PAC is our collective power to defend every member and protect the greater industry. It strengthens the industry’s voice and expands the union construction market share in California. Plus, it helps to build critical relationships and support for legislators who share our mission and vision.
Industry leaders who attended the May 30th event enjoyed food, special wines, and were treated to tequila and wine-tasting experiences provided by The Wine Militia.
The Annual UCON PAC Fundraiser (taking place in both Southern and
Northern CA) was established to raise awareness about our efforts to elect union-minded candidates and support political allies. In seven short years, this fundraiser has quickly emerged as one of the most effective, owner-centric industry events in California.
Thank you to everyone who sponsored UCON’s 2024 PAC Fundraisers. We are incredibly grateful for your trust and support.
(Left photo) Michael Gates, DeSilva Gates Construction; (Right photo) Mark Breslin, UCON CEO, Mike Preston, Preston Pipeline, Inc.
Ron Bianchini, Preston Companies, Brock Grunt and Kevin Hester, McGuire and Hester
Kyle Park, Midstate Barrier, Inc., Clay O’Neal, UCON Regional VP, Southern California, Daniel Rodriguez, Bay Cities Paving & Grading, Inc., Dale Breen, Midstate Barrier, Inc.
Jeff Ward, GSW Construction Inc., Theil Harryman, Underground Construction Co., Inc., Cody Gunning, GSW Construction Inc.
Emily Cohen, UCON EVP addresses the guests
Eric Patterson and Matt Scott, Kiewit Infrastructure West Co.
David Morris and Robert Chrisp, Chrisp Company
Don LeDoux, Summit Financial Group, LLC; George Rehrmann, Stomper Company, Inc.
Ben Rodriguez, Bay Cities Paving & Grading, Inc., Dave Riccitiello, Golden State Bridge, Inc.
Bob Rahebi, Redgwick Construction Company, Andy Vasconi, McGuire and Hester
Colleen Atkinson, Comerica Bank, George Furnanz and Kurt Kniffin, Stacy Witbeck
(Left photo) Joe Capriola, Silverado Contractors, Inc., Trony Fuller, Argent Materials, Inc.; (Right photo) Jerry Condon, Condon-Johnson & Associates, Inc., Emily Cohen, UCON EVP
Kyle Park Midstate Barrier, Inc., Jim Gallagher, Teichert Construction, Brian Gates, Goodfellow Bros. California, LLC, Darren Wilhoit, Goodfellow Bros. California, LLC
Chris Dellaringa, Blue Iron Foundations & Shoring, Inc., Shawn Buckman, Odigos Construction, Inc., Amanda Parlog, JMH Engineering & Construction, Inc., Matt Lovingier, JMH Enginerring & Construction, Inc.
Rob Farrell and Eric Patterson, Kiewit Infrastructure West Co. Keary Sullivan and Kelly Attebery, F & M Bank
Rita Vigil Ferguson, G & F Concrete Cutting, Inc., Tom Barr, Ghilotti Bros., Inc.
Daniel Wanner, Hoseley Corporation, Travis Miller Redgwick Construction Company
Emily Cohen, UCON EVP, and Wahid Tadros, California Engineering Contractors, Inc.
Thank You UCON PAC Committee Members:
The UCON PAC operates with a non-partisan lens, cultivating strategic relationships with elected officials. These alliances serve to advance the union contractor by laying the groundwork to address long-term industry challenges.
George Furnanz, Stacy Witbeck (Chair)
Steve Concannon, Pavement Recycling Systems, Inc. (Vice Chair)
Mike Bauman, Bauman Landscape and Construction, Inc.
Randy Cram, Tri-West Tractor, Inc.
Bruce Daseking, McGuire and Hester
Rich Gates, DeSilva Gates Construction, LLC
Dominic Sposeto, Vanguard Construction
Wahid Tadros, California Engineering Contractors, Inc.
Rita Vigil-Ferguson, G & F Concrete Cutting, Inc.
Dave Riccitiello, Golden State Bridge, Inc.
Dave Sorem, Mike Bubalo Construction Company, Inc.
Victor Sella, UCON VP of Labor Relations, Steve Ward, Pavement Recycling System, Inc.
Patrick Diebel, and Kevin Reimers, Woodruff Sawyer & Co.
Eric Duncan and Wally Stillwell, Traffic Management, Inc. (TMI)
Caleb and Desiree Haus, KRC Safety Co., Inc.
Dylan Honaker, Foundation Pile, Inc., Brendan Keeney, Woodruff-Sawyer & Co.
Brandon Quinlan and Ric Eli, J.F. Shea Construction Company, Inc.; Emily Cohen, UCON EVP, Tim Pumphrey, Volvo Construction Equipment and Services, Donna Rehrmann, Stomper Company, Inc.
Sean Castillo, Toro Enterprises, Inc.
Jay Marambe, Anvil Builders
Randy Cram, Tri-West Tractor, Inc., Andy Vasconi, and Matt Finley, McGuire and Hester,
Dermot Fallon, Foundation Constructors, Inc.
Bernie Hale, Pavement Recycling System, Inc.
Rusty Hoseley, Hoseley Corporation, Ron Bianchini, Preston Companies
Kim Rodriguez, Bay Cities Paving & Grading, Inc., Kelly Attebery, F & M Bank, Tiffany Stuart, Dynamic Office & Accounting Solutions/Dynamic Technical Partners, Ruby Athwal, Bay Cities Paving & Grading, Inc.
By Mark Schniepp, Ph.D., Director, California Economic Forecast
OUTLOOK FOR CONSTRUCTION IN CALIFORNIA
A Mid-Year Assessment—Optimistic
Optimism about business activity in 2024? In February, more than 69 percent of those surveyed (by Associated General Contractors of California) anticipate that the California construction sector will maintain its current pace or witness growth in expansion (for the remainder of 2024).
However, construction employment in California has moved to record highs, and also, so have gross labor costs. Material shortages have largely been resolved and commodity price inflation is abating in tandem with headline consumer price inflation. Prices for construction materials are still high, and will stay elevated over this year. This includes steel, brick, and cement. But the same acceleration of prices that was observed in 2022 and into 2023 has cooled.
The biggest concern for the industry normally is the pipeline of new development projects. However, that pipeline is not much of a concern as it has substantially increased over the last 3 years, particularly the large mega developments list that is seriously moving forward in California.
Currently underway are two high speed trains, one of the largest hotel conference centers in California, a spate of hospitals, medical centers and medical campuses, other transportation projects including Terminal 1 at
Job Openings in Construction / U.S.
The worries surrounding California’s construction industry for the current year notably revolve around a scarcity of skilled labor, with 74 percent of respondents (surveyed) expressing this concern. Stringent regulatory demands were cited by 64 percent, while the pressure to escalate wages and benefits was mentioned by 61 percent of respondents.
These particular concerns have been issues for the industry since the pandemic, with labor availability falling below trend and labor costs escalating above trend since 2021.
Construction Employment / California
Total Payrolls for All Construction Workers in California
San Diego International Airport, the modernization of LAX, and BART extensions to San Jose and Santa Clara and to Livermore. There are water management projects, including the removal of 4 dams on the Klamath River to restore fish habitat and access, the restoration of the Salton Sea, and the completion of the Sacramento Water Treatment Plant. Not to mention the ambitious Delta Conveyance project whose EIR was certified by the Water Resources Board in December 2023.
The new 2024 five-year infrastructure plan developed by the Governor’s office has $49 billion proposed for new transportation projects. $41 billion is already at work on energy, highway, internet, and transit project. The Infrastructure Investment and Jobs Act, passed by Congress in November 2021 is expected to allocate another $10.3 billion in federal funding exclusively for California for public transit projects, $30 billion for highways and bridges, and $1.5 billion for airports.
Consequently, there is more public funding now underway, proposed or planned for California infrastructure than at any other time in the State’s history.
Lithium Valley in Imperial County is on track to become a leader in the world for lithium production,
essential for EV batteries. The first of many proposed projects broke ground this year. Approved this past March, the first new steel production facility in over 50 years will be built near Mojave, California, creating 400 full time jobs and 515 construction jobs.
The largest “builder’s remedy” and affordable housing project in California will be built in Sonoma County. The 1,464 unit Airport Village will be fast-tracked under California’s builder’s remedy act which enables a bypass of local building rules and a streamlined approval process. The project will be underway by the Spring of 2025.
Urban projects such as Related Santa Clara began earlier this year. It’s a $9 billion project to significantly transform urban living in the Silicon Valley with integrated office, retail, hotel, residential and entertainment development. Ditto Related Bristol in Santa Ana with up to 4,000 residential units and 350,000 square feet of commercial space.
Concourse 0, a 250,000 square foot extension of Terminal 1 at LAX will be built in tandem with a new Terminal 9 providing better passenger access and more connections with up to 27 new gates. The automated people mover continues development and testing. Operation will occur in 2025. The budget for this single project–a 2.25 mile system named Skylink has swelled to $2.9 billion.
Automated People Mover at LAX, to be operational in 2025
OUTLOOK FOR CONSTRUCTION IN CALIFORNIA (CONT’D)
A Mid-Year Assessment—Optimistic
The second largest residential community being developed in Southern California is underway. Silverwood in Hesperia is entitled for 15,000 new homes. The largest project under construction is Valencia, in the Santa Clarita Valley. The first phase of 4,000 homes is underway, but 7 additional villages adding another 17,000 homes comprises the entire Newhall Ranch specific plan for the area.
The Treasure Island development project is underway, creating 8,000 new homes. The $2 billion Intuit Dome, new home for the LA Clippers is nearly completed and will open in the Fall.
New development projects underway or in planning are so voluminous in California, that barring a severe recession, they will remain the principal engine of economic growth for the remainder of this decade.
Dr. Schniepp is the Director of the California Economic Forecast, www.californiaforecast.com. He has presented at several UCON Legislative Summit events. Contact him at mark@californiaforecast.com.
PRINCIPAL MEGA DEVELOPMENTS IN CALIFORNIA
CONSTRUCTION MARKET FORECAST
2024 Industry Outlook from FMI
KEY TAKEAWAYS
n Total engineering and construction spending for the U.S. is forecast to end 2024 up 5%, a slightly slower pace than 2023’s 7%. (Anticipated growth in 2024 will remain strong across all nonresidential
segments, led by nonbuilding structures (it should be noted that 2023 was forcast to end down 1%, but ended up 5%).
High-performing segments in 2024 point to continued strong investment growth across manufacturing, lodging, public safety, highway and street, transportation, and sewage and waste disposal. Each of these segments are forcast to end the year with growth 10% or higher over 2023 levels
Many segments are expected to end 2023 with growth rates between 5%and 10%. These segments include health care, educational, religious, amusement and recreation, communication, power, water supply, and conservation and development.
Single-family residential, the largest segment in the industry, is expected to stabilize from the large 14% drop in 2023 and see more investment in 2025.
The latest Nonresidential Construction Index (NRCI) is up sharply (score of 51.9). The Index suggests that participants see expanding industry opportunities in the quarter and year ahead. Sentiment toward all economic measures has improved, while labor costs, material costs and expectations for office construction are likely to remain the largest challenges this year.
Photo: Toro Enterprises, Inc.
n The manufacturing construction boom in the U.S. will continue to drive expanding transportation needs, especially for freight rail and port activity.
The manufacturing construction boom in the U.S. will continue to drive expanding transportation needs, especially for freight rail and port activity.
n Airport infrastructure needs are expanding rapidly, with passenger and cargo volumes each expected to double before 2040. Airports Council International (ACI) estimates more than $150 billion in U.S. airport investment needs through 2027, with 53% needed at large hub airports.
n Political support will remain focused on renewable energy investments, batteries, and the shift toward electric transportation and building systems. Investment and research and development will continue across all power generation platforms.
Global trade and petroleum production shifts have recently favored East Coast infrastructure, resulting in shorter inland hauls and slowing trucking activity nationwide.
Airport infrastructure needs are expanding rapidly, with passenger and cargo volumes each expected to double before 2040. Airports Council International (ACI) estimates more than $150 billion in U.S. airport investment needs through 2027, with 53% needed at large hub airports.
Political support will remain focused on renewable energy investments, batteries, and the shift toward electric transportation and building systems. Investment and research and development will continue across all power generation platforms.
Faster and more reliable networks will be needed to accom modate the growing use of AI and other cloud service offerings, the internet of things, and the shift to virtual offices, learning and entertainment.
n Grid planners significantly raised their five-year load growth outlooks to nearly a 5% compound annual growth rate through 2028 due to aggressive investments in new manufacturing and industrial facilities, data centers, transportation and building electrification. For example, data center power needs are expected to triple by 2030.
Industry demands will overlap with investment across data centers, manufacturing, transportation, power, and logis tics and distribution.
Grid planners significantly raised their five-year load growth outlooks to nearly a 5% compound annual growth rate (CAGR) through 2028 due to aggressive investments in new manufacturing and industrial facilities, data centers, transportation and building electrification. For example, data center power needs are expected to triple by 2030.
Owners are likely to remain increasingly concerned about pollution obstacles in urban markets while Infrastructure Investment and Jobs Act (IIJA) funds drive increased
and
Domestic oil and gas producers will continue to consolidate
Photo courtesy Veteran Pipeline Construction
n Spending growth in 2024 will remain well over historical levels but will begin to slow this year and next as IIJA funds level off.
Spending growth in 2024 will remain well over historical levels but will begin to slow this year and next as IIJA funds level off.
n Disinflation and reduced cost pressures will help states move projects forward in 2024 and 2025.
Disinflation and reduced cost pressures will help states move projects forward in 2024 and 2025.
n An increasing share of funds is expected in new and/or capacity expansion projects over the forecast period, including several new and replacement bridges.
An increasing share of funds is expected in new and/or capacity expansion projects over the forecast period, including several new and replacement bridges.
Photo: Chrisp Company
n The EPA estimates that the U.S. needs $650 billion over the next 20 years to improve safe drinking water infrastructure.
The EPA estimates that the U.S. needs $650 billion over the next 20 years to improve safe drinking water infrastructure.
n Growth in spending in 2024 ties to the recent wave of residential and manufacturing investment, domestic migration, aging infrastructure, storm hardening/ resiliency and the changing regulatory environment.
Growth in spending in 2024 ties to the recent wave of residential and manufacturing investment, domestic migration, aging infrastructure, storm hardening/resiliency and the changing regulatory environment.
Two-thirds of water supply infrastructure spending will be needed for the repair of transmission and distribution networks, followed by water treatment and water storage.
n Two-thirds of water supply infrastructure spending will be needed for the repair of transmission and distribution networks, followed by water treatment and water storage.
IIJA funds provide supplemental federal appropriations through 2026 and are supported by recently expanded Safe Drinking Water Act (SDWA) programs.
n IIJA funds provide supplemental federal appropriations through 2026 and are supported by recently expanded Safe Drinking Water Act (SDWA) programs.
n Several federal funding mechanisms (including IIJA funds) are being applied to local sewage and waste disposal grants
Several federal funding mechanisms (including IIJA funds) are being applied to local sewage and waste disposal grants.
The Environmental Protection Agency (EPA) is updating its Clean Watersheds Needs Survey (CWNS) later this year for the first time since 2012, which is an important means of determining investment needs and driving policy support for local and municipal infrastructure.
n The Environmental Protection Agency (EPA) is updating its Clean Watersheds Needs Survey (CWNS) later this year for the first time since 2012, which is an important means of determining investment needs and driving policy support for local and municipal infrastructure.
Photo: Preston Pipelines Infrastructure LLC
Construction Outlook: U.S. 2024 Segment Performance (2024/2023 Comparison)
The following sectors are forecasted to increase 5% or more from 2023:
• Lodging
• Health Care
• Educational
• Religious
• Public Safety
• Amusement and Recreation
• Sewage and Waste Disposal
• Conservation and Development
• Transportation
• Manufacturing
• Power
• Highway and Street
• Water Supply
• Communication
FMI’s 2024 North American Engineering and Construction Outlook, Q2, 2024 is available online at fmicorp.com. The information in this article has been excerpted from the Outlook to include specifics relating to the markets served by our UCON members. Download the complete document for additional market segments. The Outlook is authored by Jay Bowman, leader of FMI’s Research and Analytics Practice, jay.bowman@fmicorp.com; Brian Strawberry, chief economist at FMI, brian.strawberry@fmicorp.com; and Emily Beardall, a senior consultant at FMI, emily.beardall@fmicorp.com.
The EPA estimates that the U.S. needs $650
Two-thirds of water supply infrastructure spending needed for the repair of transmission and distribution networks, followed by water
Photo: Sukut Construction LLC
Contributed by Woodruff-Sawyer & Co.
BUILDING DEFENSES AGAINST CYBER RISK IN THE CONSTRUCTION SECTOR
The cyber risks the construction industry is exposed to are a mix of common cyberattacks as well as very niche risks that can permeate every corner of a construction enterprise.
From building neighborhood homes to mile-long suspension bridges, construction is the foundation of the growth and essential to the development and advancement of the country. Because of the importance of the construction industry, it is imperative that we understand the existential threats presented by cyberattacks and cyber criminals to construction companies, contractors, and their employees.
The cyber risks the construction industry is exposed to are a mix of common cyberattacks as well as very niche
risks that can permeate every corner of a construction enterprise.
Cyber Risk Basics for Construction
The construction industry has always inherently had cyber risk. For years, cybersecurity experts have warned contractors that they are targets for ransomware attacks, phishing theft, and data breaches/theft of sensitive information. Today, construction industry industrial espionage and geopolitically driven cyber disruption are on the rise.
Managed service companies who monitor and respond to cyberattacks have been clear about the significance of the risk to the industry. For example, in ReliaQuest’s 2023 Annual Cyber-Threat Report, the construction industry ranked No. 1 on the most-targeted sectors list (followed by transportation) with an average of 226 incidents per year.
As a result, the construction industry has experienced massive losses including stolen or misdirected funds and failed bids due to system interruptions, as well as brand damage to future teaming arrangements, lost contracts, and customer confidence, on top of cascading cyber incident response costs like system restoration and ransom payments.
To put the magnitude of the effects of a cyberattack into context, a large-scale ransomware event has a high likelihood of causing severe disruption across the supply chain. It may even impact suppliers or clients if malware is spread outside the company or
Construction Is #1 On This Top 5 List Of Most-Targeted Sectors For Cyberattacks
confidential data is leaked. The financial impact of an attack of this nature should not be underestimated as a construction company under attack will experience large-scale business disruption, particularly when users are locked out of crucial systems necessary for the progression or completion of a project. Additionally, when a cyberattack leads to a significant delay in project delivery or compromises the supply chain, this could cause considerable reputational damage, particularly if highly sensitive data is leaked. This in turn causes distress and/or financial losses for other businesses or individuals associated with the business.
Why Is the Construction Sector So Heavily Affected?
There are several factors present in the construction industry that make it more attractive to criminals, and sometimes a target.
• Lack of investment in cyber security infrastructure: An entity without appropriate cyber hygiene and cyber architecture signifies an entity that is easy to attack and extort. Monetarily driven cyber criminals can apply little effort for maximum gain. Many engineering and construction companies operate on narrow margins. Effective and meaningful technology and software implementation and the accompanying data privacy and security compliance require a dedicated corporate resource, management, and investment, which are often viewed as expenses against the balance sheet. Accordingly, in construction, many companies have not properly invested in cyber security and pay dearly when they experience an attack.
• Target for those seeking sensitive information: For nation-states seeking to gain valuable infrastructure information, intellectual property, or entrance to critical public works, the construction industry is the weak link and an easy target for access. Examples of information that cyber criminals target include proprietary construction plans and designs, facilities security information, and other intellectual property.
• Fast adoption of new technologies: Engineering and construction services supported by technologies such as artificial intelligence, advanced analytics, cyber-physical systems, machine learning, and robotics have paved the way for increased productivity, efficiency, connectivity, and stronger service offerings. However, cyber and data privacy risk is often overlooked in the race to embrace new technologies, creating a significant risk.
• Reliance on legacy systems is a significant problem in the construction industry. Legacy or end-of-life operating systems present significant opportunities for cybercriminals. An operating system that is no longer supported will have known vulnerabilities, and because support has ended, patches will not be available. Often, the encryption event itself will cripple the legacy operating system or apparatus, preventing any recovery.
• Third-party risk: Vendors that are connected to a common network can be an often-unmitigated threat. Third-party cyber risk includes potential data breaches due to vulnerabilities within a vendor’s IT environment and can lead to financial, reputational, and regulatory/ compliance consequences.
(Continued on next page)
CYBER
BUILDING DEFENSES AGAINST CYBER RISK IN THE CONSTRUCTION SECTOR (CONT’D)
• Lack of cybersecurityrelated regulations: For many decades, it seemed the construction sector did not have many regulations in place for data security, whereas sectors like financial services are subject to stringent regulation. However, the US government has been increasingly regulating and requiring government contractors to comply with the National Institute of Standards and Technology (NIST) Cybersecurity Framework and further pushed the compliance with Cybersecurity Maturity Model Certification. Increasingly, those who contract with the federal government must demonstrate effective cybersecurity and data protection practices as a means of doing business. A construction company’s ability to bid or participate in federal works projects will require cyber maturity as a condition.
• Effective data breach prevention strategies around confidential information like employee data, trade secrets such as pricing and contract bidding frameworks, schematics, and operational technology (OT) engineering data.
• Endpoint detection and response (EDR), including mobile device management (MDM) for devices in the field to track and wipe stolen or lost gadgets.
• Software sandboxing, which offers a controlled environment before deploying new and/or updated software, including patches.
Basic Cybersecurity Measures for the Construction Industry
All construction companies and contractors need to be aware of the cyber risks facing their industry.
Taking measures to ensure adequate controls are in place to protect the enterprise’s ability to function and its crown jewels include, but are not limited to:
• Multi-factor authentication for all remote access, webmail, and privileged and administrative accounts.
• Employee training with robust phishing simulations. Cyber insurance carriers often offer employee training as a value-add to the insurance policy.
• Strict dual controls with callback requirements for payment account modifications and invoice manipulation to mitigate social engineering fraud.
• Segmented, tested, proven, and protected backups for all critical systems and databases. Note that some cyber policies can assist with business interruptions due to cyberattacks.
• A tested and annually refreshed incident response plan including ransomware preparedness, resource planning/task lists, and public relations strategies.
Woodruff-Sawyer & Co., protects their construction clients’ people and assets. They provide expert counsel and fierce advocacy to safeguard clients against their enterprise risks.
This article was written by David Anderson, Vice President, Cyber Liability, Jamin Valdez, Vice President, Construction, and Bridget Quinn Choi, Esq., Lead Product Council, Cyber.
For the full article and links to additional resources on the Cyber Liability subject, visit www.wsandco.com, or contact Jamin Valdez at jvaldez@woodruffsawyer.com. WoodruffSawyer & Co. is a UCON member since 1994.
UNITED FOR IMPACT— YOUR SEAT AT THE TABLE
UCON’S LEGISLATIVE SUMMIT
On May 20th, United Contractors (UCON) gathered at the Kimpton Sawyer in Downtown Sacramento for our legislative summit, “United for Impact.” As the foremost advocate for California’s union signatory contractors, UCON is dedicated to ensuring your voice is heard where it matters most—in the halls of power.
State politics significantly influences our industry, and “United for Impact” addressed critical issues such as the Private Attorneys General Act (PAGA), AB 5 and the future of independent trucking, transportation funding, regulatory battles, and the pivotal November elections that could reshape the CA legislative landscape.
Attendees gained political and election insights from Rob Stutzman, Founder and President of Stutzman Public Affairs and former Communications Director for Governor Arnold Schwarzenegger. Returning speaker, economist Mark Schniepp, Ph.D., provided a 2024-2025 construction industry economic forecast, highlighting trends and challenges on the horizon. His report is available to UCON members on our website.
UCON’s Executive Vice President, Emily Cohen, and UCON Political Action Committee Chair, George Furnanz of Stacy Witbeck, discussed organizational goals centered on advocacy and legislation. The briefing concluded with a dynamic panel discussion featuring UCON’s Lobbying Team from Politico, moderated by Emily Cohen, covering current and upcoming legislative issues and opportunities.
The event also allowed attendees to network and connect with industry leaders and elected officials at the Kimpton’s Revival Rooftop Bar and Lounge.
Rob Stutzman, Founder and President Stutzman Public Affairs, and former Communications Director for Governor Arnold Schwarzenegger, (right) briefed attendees on upcoming state elections; (lower right) UCON EVP Emily Cohen welcomes guests to the afternoon briefing session; (below) George Furnanz, Stacy Witbeck and chair of UCON’s Political Action Committee emphasizes that UCON’s PAC is Your PAC as an engaged membership.
UCON’s success is driven by our active and engaged membership. Your participation has enabled us to achieve historic wins, shaping the business environment and driving industry growth. Thank you for joining us in making an impact!
Mark Schniepp, Ph.D., California Economic Forecast Director, delivers an industrytailored economic forecast report.
UCON’s Advocacy Lobbyists, Eddie Bernacchi, Kiana Valentine and Bret Barrow of the Politico Group, participated in a panel discussion (moderated by UCON’s EVP, Emily Cohen) on legislative hot topics including current legislation that UCON is actively supporting or opposing.
Wally Stillwell and Eric Duncan, Traffic Management, Inc. (TMI),
UCON’s Legislative Reception welcomed guests including state elected officials, agency leaders, labor leaders, and more.
CA Lieutenant Governor Eleni Kounalakis (middle) attends UCON’s Legislative Reception; (pictured from left to right) Bret Barrow, Politico Group, Eric Patterson, Kiewit Infrastructure West Co., Kimberly Sabin, Columbia Electric, Inc., Mike Scott, Traffic Management, Inc. (TMI), Emily Cohen, UCON EVP, Lieutenant Governor Eleni Kounalakis, Dave Sorem, Mike Bubalo Construction Company, Wally Stillwell, Traffic Management, Inc. (TMI), Dina Kimble, Royal Electric Company, Kiana Valentine, Politico Group.
Mark Schniepp, Ph.D., California Economic Forecast, Chad Sarrie and Dina Kimble, Royal Electric Company
Dave Greco, Teichert Construction, Emily Cohen, UCON EVP
James Thuerwachter, CA State Council of Laborers, Voleck Taing, ACEC California
Trony Fuller, Argent Materials, Inc., Dave Miller, IMA Financial Group, Kimberly Sabin, Columbia Electric, Inc., Brock Grunt and Bruce Daseking, McGuire and Hester
Brian Gates, Goodfellow Bros. California, LLC, Mark Breslin, UCON CEO
Wahid Tadros, California Engineering Contractors, Inc., and Tony Thurmond, California State Superintendent of Public Instruction
Senate Candidate Suzette Valladares, District 23, Scott Govenar, Governmental Advocates, Inc., Assemblywoman Laurie Davies AD74
Dave Sorem, Mike Bubalo Construction Company
Mark Neuburger and Kristina Gallagher of California State Association of Counties
Michele Newman, Finance Director, Senator Josh Newman (SD29)
NAPKIN SPONSOR SPECIALTY DRINK SPONSOR
WI-FI SPONSOR LUNCH SPONSORS
BAR SIGN SPONSORS Thank you to our United for Impact Sponsors; and special thank you to Breslow Imaging, and The Kimpton Sawyer.
Jim Summers and Michael Gates, DeSilva Gates Construction, Tony Thurmond, California State Superintendent of Public Instruction, Emily Cohen, UCON EVP, Chad Sarrie, Royal Electric Company
Joseph McGowan, Rogers Joseph O’Donnell, Bruce Daseking, McGuire and Hester
Bret Barrow and Chris Lee, Politico Group, Aaron Johnston, Graniterock
Steve Ward, Pavement Recycling Systems, Inc., Senate Candidate Suzette Valladares, District 23, Jason Myers, Dees Hennessey, Inc.
Evan Johnson, Office of State Controller, David Fogt of the Contractor State License Board, Eddie Bernacchi, Politico Group
Daniel Wanner and Rusty Hoseley, Hoseley Corporation, Kevin Hester, McGuire and Hester
Dave Cantor, Tom Barr, and Mike Llamas, Ghilotti Bros., Inc.
Jackie Ochoa and Jesus Pedroza, Frontline General Engineering & Construction, Inc.
Jon Switalski, ReBuild SoCal Partnership, Alan Guy, Anvil Builders, Jay Bradshaw and Ron Rowlett, Nor Cal Carpenters
(Photo below) Joe Cruz, California State Council of Laborers, Steve Clark, Granite Construction Company, James Thuerwachter, CA State Council of Laborers
Kimberly Sabin, Columbia Electric, Inc., Zach Youngren, Anvil Power
By Damien Breen, - Regulatory Consultant Environmental Communication Strategies
THE WAYS CONTRACTORS GET IN TROUBLE WITH LOCAL AIR DISTRICTS— AND HOW TO AVOID THEM!
Knowing a few simple rules can protect the environment and keep you up and running. We all know the nightmare scenario; an inspector shows up on your site with a bunch of complaints from neighbors and suddenly you are getting cited for a string of requirements you knew nothing about. Relative to local air districts, this is totally avoidable if you know who these agencies are, how they work and what they are looking for.
California has 35 local air districts each with its own set of rules that govern air emissions. You might ask “How am I supposed to keep all of that straight?” A good question, but I’m going to let you in on a secret, their rules are rarely unique. Due to federal and state air pollution laws, local air districts are required to copy rules from each other. This means rules that apply in the largest air districts, the South Coast Air Quality Management District (South Coast), Bay Area Air Quality Management District (Bay Area) and San Joaquin Valley Air Pollution Control District (San Joaquin), are generally mimicked throughout the state. I’ll cover exceptions and how to deal with them later.
The South Coast covers Los Angeles, the Bay Area covers the San Francisco Bay, and San Joaquin covers the Central Valley – a combined jurisdiction that is home to more than half California’s population. I asked each of these agencies what were the rules that were most applicable to contractors, and which infractions were contractors most cited for. They responded as follows:
RULE: ASBESTOS
Most Common Violations:
• Demolishing a structure without doing a survey to see if asbestos was present;
• Not submitting an asbestos survey for a demolished structure to the air district;
• Not notifying an air district of asbestos removal;
• Changing the date on which asbestos was removed from a structure but failing to notify an air district of the change; and/or
• Not submitting a management plan when disturbing naturally occurring asbestos (serpentine rock).
Photo: Joseph J. Albanese, Inc.
RULE: DUST CONTROL
Most Common Violations:
• Failing to submit a dust control plan;
• Tracking out of dust/dirt onto roadways;
• Creating excessive dust emissions at a site or dust migrating offsite; and/or
• Failing to keep records of contractor inspections to prevent dirt track out.
RULE: PORTABLE EQUIPMENT REGISTRATION (NON-VEHICLE EQUIPMENT)
Most Common Violations:
• Not registering portable equipment with the California Air Resources Board (CARB);
• Using equipment that doesn’t meet emissions requirements in the CARB rule; and/or
• Keeping portable equipment onsite for more than a year (this requires an air district permit).
RULE: CONTAMINATED SOIL
Most Common Violations:
• Failing to notify air district prior to excavating contaminated soil;
project notifications, plan submittals, project monitoring, etc. An interactive map showing each of the air districts, their jurisdictions and linking to their websites can be found here:
ww2.arb.ca.gov/california-map-local-airdistrict-websites
(Continued on next page)
WHAT
• Failing to cover contaminated soil piles with plastic or water controls; and/or
• Failing to cover trucks carrying contaminated soil.
That might seem like a long list, but staying in compliance has a golden rule—ask first! Before you start any construction, open a conversation with your local air district. Believe it or not these folks want to help you and will guide you through the ins and outs of
TROUBLE WITH
LOCAL AIR DISTRICTS AND HOW TO AVOID THEM! (CONT’D)
Scary as that sounds, I recommend calling air district compliance or enforcement phone lines. This is where you’ll find the people who can quickly get you the answers you need.
The second piece of advice I’m going to give is to use common sense. Nothing will bring your local air districts down on you quicker than a bunch of dirt tracked out onto local streets or dust blowing from a construction site onto neighbors’ properties. Have a plan to control both, make sure you are checking that its working and record your checks. Also, before you dig or demo, know what you are getting into. If a structure is pre-1970 it will contain asbestos. In fact, asbestos was still used in joint tape up until the 1980’s and possibly later, so regardless of when a structure was built, get a professional survey prior to demolition. This protects you and your workers. The same holds true for pipeline or tank excavation. You need to sample before you break ground to know what you are getting into. So, have a company do soil testing.
My third piece of advice is related to portable engines, this is anything not self-propelled, like a diesel backup power generator, air compressor, concrete pump, tub grinder, woodchipper, water pump, etc. If you own or rent it, make sure it’s registered with CARB and that it complies with the Portable Equipment Registration Program (PERP) requirements. This program provides a registration for three years that is good for the entire state of California. This will keep you out of trouble with your local air district, provided you don’t keep the equipment operating at a site for more than 12 months. Here again, the golden applies, if you are not sure ask. You can find out more about the PERP program here:
ww2.arb.ca.gov/our-work/programs/ portable-equipment-registration-programperp
Finally, a word on exceptions. In San Joaquin, an impact assessment is required for any project that might release pollutants into the air—for example: dust or soil vapors, etc. This isn’t common in other parts of the state but to be sure, I again advise applying the golden rule and contacting your local air district before you start work to find out what they require. To emphasize this point one more time, I’ll give the last words in this article to Jaime Holt, San Joaquin’s Chief Communications Officer and a 20-year veteran of that organization. Jaime says “Communicate with us. We are always willing to discuss issues, clarify requirements and walk contractors through any issue they might have. Education is our top priority in our compliance team, and we would much prefer a conversation or two before a project begins, rather than being in a position to issue an NOV (citation) after a project is in process.”
______________________________________________
Damian Breen, a Regulatory Consultant with UCON, is the founder of Environmental Communication Strategies and former Deputy Executive Officer of the Bay Area Air Quality Management District. He helps companies navigate communication, permitting, compliance and citation issues with air and water quality agencies. He can be reached at: damian@ecs-ca.com
Photo: Silverado Contractors
UP
By Angelica Gouig, Director of Events and Education
ENGAGE, DEVELOP, RETAIN
Take advantage of UCON’s Professional Development Programs—40+ classes focused on Leadership, Safety, Compliance, HR, Construction Specific and more. Most classes are FREE to UCON members. You will find courses specially curated for the construction industry— classes for the field, upper management, and everyone on your team.
Over 4,300 individuals from over 230 companies registered for classes last year. We have highlighted the July & August classes on the following page. You can also download the complete 2024 UCON Professional Development catalog, as we continue to add classes to our offerings for the year—register on our website: www unitedcontractors.org/calendar
JULY & AUGUST COURSES
JULY
9
Ignite the Fire Within: Mitigating Burnout and Rekindling Passion for Work and Life
Tuesday, July 9; 2:30pm-4:30pm
Instructor: Sally Spencer-Thomas, United Suicide
Survivors International
Class Style: Virtual | Class Limit: Unlimited Cost – Member: FREE | Non-member: $100
PROJECT MANAGEMENT CAREER ADVANCEMENT (PMCA) PROGRAM
Session Dates/Times: Wednesdays: July 24 through October 30; 9:00am-12:00pm
Graduation: November 6; 9:00am-12:00pm
SOLD OUT!!
This innovative program reveals the essentials of Construction Project Management with an engaging and interactive learning environment that encourages team collaboration and will increase overall job performance.
AUGUST 6
Developing a Strategic Plan that Actually Does Something
Tuesday, August 6; 12:00pm-1:00pm
Instructor: Cody Miller, MPWR
Class Style: Virtual | Class Limit: Unlimited Cost – Member: FREE | Non-member: $100
AUGUST
20
Sale-Ready Strategies: Prepping Your Construction Firm for Acquisition
Tuesday, August 20; 2:30pm-4:30pm
Instructor: Eric Anderton, Construction Genius
Class Style: Virtual | Class Limit: Unlimited Cost – Member: FREE | Non-member: $100
JULY 23
Leading Culture
Tuesday, July 23; 2:30pm-4:30pm
Instructor: Bill Treasurer, Giant Leap Consulting
Class Style: Virtual | Class Limit: Unlimited Cost – Member: Free | Non-member: $100
This session of UCON’s Project Management Career Advancement (PMCA Program is now SOLD-OUT. To add your name to the list for the next session (dates tbd), email Avanti Mehta, Education Assistant at amehta@unitedcontractors.org.
AUGUST 13
Certified Payroll – Answering Contractors Most Frequently Asked Questions
Tuesday, August 13; 2:30pm-4:30pm
Instructor: Darbi Griffin and Jesse Jimenez, FFC, and Ruby Varnadore, United Contractors
Class Style: Virtual | Class Limit: Unlimited Cost – Member: FREE | Non-member: $100
AUGUST 27
Surviving an Active Shooter in the Office and on the Jobsite
Tuesday, August 27; 2:30pm-4:30pm
Instructor: Carol Cambridge, The Stay Safe Project
Class Style: Virtual | Class Limit: Unlimited Cost – Member: FREE | Non-member: $100
By Christine Traina, UCON Events Manager
SILVER
MEMBER
ANNIVERSARIES: JUNE
United Contractors would like to take this opportunity to recognize and thank the following companies who are celebrating their anniversary of membership with our organization in June:
49 YEARS – 1975
Associate Member: ICONIX Waterworks, Inc.
John Alcazar
46 YEARS – 1976
Contractor Member: Pascal & Ludwig Constructors
Alan Ludwig
Associate Member: Northwest Pipe Company
Mike Dumitrache
47 YEARS – 1977
Associate Member: Forterra Luis Santana
43 YEARS – 1981
Associate Member: CliftonLarsonAllen LLP
Russell Rigler
37 YEARS – 1987
Contractor Member: Tomovich & Associates
Luka Milosevich
36 YEARS – 1988
Contractor Member: Knife River Construction - Chico
Rene Vercruyssen
Associate Member: Johnston, Gremaux & Rossi, LLP
Ed Lampe
30 YEARS – 1994
Contractor Member:
DeSilva Gates Construction
Rich Gates
27 YEARS – 1997
Contractor Members:
AJW Construction
Alfonso Quintor
Chrisp Company
Robert Chrisp
Associate Member: Liberty Mutual Surety
Lisa Merlin
26 YEARS – 1998
Contractor Members:
Bay Pacific Pipelines
Eugene Carew
Tennyson Electric, Inc.
Matt Tennyson
24 YEARS – 2000
Contractor Members:
Lorang Brothers Construction, Inc.
Michael Lorang
Martin Brothers Construction, Inc.
Felipe Martin
19 YEARS – 2005
Contractor Members: Carone and Company, Inc.
Lloyd Carone
Half Moon Bay Grading & Paving, Inc.
Cynthia Giovannoni
18 YEARS – 2006
Contractor Member: Bentancourt Bros. Construction, Inc.
Jeff Bentancourt
17 YEARS – 2007
Contractor Members: R.A. Nemetz
Construction Co.
Rob Nemetz
Schembri Construction Company, Inc.
Charles Schembri
16 YEARS – 2008
Contractor Member:
Platinum Pipeline, Inc.
Manuel de Freitas
13 YEARS – 2011
Contractor Members: W. R. Forde Associates Inc.
Candace Clapp
Associate Member: ICC Equipment & Rentals
Greg Aguilera
12 YEARS – 2012
Associate Member: Summit Financial Group, LLC
Don Ledoux
11 YEARS – 2013
Contractor Members: Brosamer & Wall, Inc.
Charles Wall
JCC, Inc.
Craig Johnson
10 YEARS – 2014
Contractor Member: MJG Inc. dba MJG Constructors Inc.
Allen Wilson
9 YEARS – 2015
Contractor Members: Dutch Contracting, Inc.
Nicholas Zwetsloot
Pacific Infrastructure Construction LLC
Peter Wells
8 YEARS – 2016
Associate Members: Smith Currie Oles LLP
Arpi Alajaji
7 YEARS – 2017
Contractor Members:
Champion Contractors
Peter Knuth
Liberty Contractors, Inc.
Joe Capriola
Shimmick/Danny’s Joint Venture
Wendy Bonnell
5 YEARS – 2019
Contractor Members: American Civil Constructors LLC
Nicole McCraven
Minerva-Graniterock JV
Rob Snyder
Teichert Solar
Tom Griffith
4 YEARS – 2020
Contractor Members: Garrison Demolition and Engineering Inc.
Kris Huff
International Line Builders
dba ILB Electric
Raul Carlos
Photo
M.A. McClish
Excavating, Inc.
Michael McClish
OHLA USA, Inc.
Alex Medyn
Pavement Coatings Co.
James Wu
RK Engineering Inc.
Thomas Carroll
Associate Member:
CPM Logistics
Abbigail Brown
3 YEARS – 2021
Contractor Member: EverLevel Holding LLC
Gunnar Lee-Miller
Associate Members:
Rebuild SoCal Partnership
Jon Switalski
2 YEARS – 2022
Contractor Member:
Bess Testlab Inc. dba
Bess Utility Solutions
Joseph Bohorquez
Papich Construction Company, Inc.
Jason Papich
Strive Concrete Cutting, Inc.
Sandra Chavez
WGJ Enterprises, Inc.,
dba PCI
William Jacob
Western Paving Contractors, Inc.
Jim Nelson
1 YEAR – 2023
Contractor Member:
Berkeley Concrete Pumping, Inc.
Lynne DeLuca
Crane Rental Service, Inc.
Cathy Greinke
Hill Crane Service Inc.
Ronald R. Hill
Kitty’s Sweeping Inc
Kitty Kellar
Marco Crane & Rigging Co.
Sam Meyer
Maxim Crane Works L.P.
Andy Steinberg
Michael O’Shaughnessy Construction, Inc.
Michael O’Shaughnessy
Mr. Crane, Inc.
Andy Steinberg
Associate Members: Ashman Company Auctioneers and Appraisers
Ryan Ashman
Boom and Bucket, Inc.
Lee Pinkston
Mobile Barriers
Kevin Groeneweg
Meridian Camera
Jami McDermott
NEED EXTRA COPIES? JUST LET US KNOW. UCON MEMBERS CAN ORDER ADDITIONAL COPIES (NOT AVAILABLE TO NON-MEMBERS)
UCON’S 2024 DIRECTORY AND INDUSTRY RESOURCES GUIDE—THE REVEIWS ARE IN!
“I love it; it is never 2 feet away from me.”
“Exactly what I needed.”
“I saw a copy of this product, and I joined as a member.”
“Thank you for listening and bringing this product back” “I see this product in all of my Project Managers’ offices.”
Back by popular demand—UCON’s Directory and Industry Resources Guide was mailed to all members in early May. This product is a go-to resource for you and your team. You’ll find company information divided by Contractors and Associate Members, and specific information on all UCON Union Organization Partners. In addition, there is an extensive section in the front of the booklet, outlining UCON, our services and our staff—it’s a “who-to-call” quick reference for when you need us. We are here for you!
Review our Benefits & Services pages—we offer many solutions and assistance for our valued members— take advantage of our Contractor Resources Library (over 30,000 downloads), and our Professional and Leadership Development Classes (over 3,500 registered in 2023), and much more. Use this guide to build relationships with the like-minded members of this great community.
As an organization, we are member-driven. We listened to your requests for this product to return, and we are happy to have delivered.
We encourage you to continually review your online member account to ensure that your address and contact information is current. As you know, UCON is a statewide organization. Do you have another office location in Southern (or Northern) California? Please add that information to your account. If you need assistance with contact information or updates, reach out to memberinfo@unitedcontractors.org, or contact UCON directly at (925) 855-7900.
We will begin working on the next edition in the next few months. If you are interested in advertising, contact Michelle Vejby, MarCom Manager, mvejby@unitedcontractors.org, (925) 413-4038. Thank you!!
