Event Calendar

Maryland AGC E-Newsletter
May 2009

 


Therrien Waddell Hosts Penn State Students

 

Thank you to all at Therrien Waddell Construction, for hosting the Annual Penn State Student Tour.

 

 

Thirty-five students from Penn State University toured the construction site at Stanford Overlook on 8894 Stanford Boulevard in Columbia recently. The students-junior and senior engineering and construction management majors-spent the day with the project's construction manager/general contractor Therrien Waddell, Inc., property owners Baxley Development and architect WH Stablein, AIA & Associates.

 

 

"By being onsite, the students were able to see firsthand the challenges of designing and building a property of this caliber, and we were able to explain to the process of solving problems with a construction project of this magnitude," said Jerry Therrien, President of Therrien Waddell. "The students asked a multitude of questions I don't think they would have had if they had not seen the project firsthand."

 

 

"We were lucky to have the team at Stanford Overlook welcome the students for the day," said AGC President Champe McCulloch. "The folks at Therrien Waddell opened the site up to Penn State's engineering and construction management majors and brought in the project's owners and architects. It was a tremendous learning experience all around."

 

Therrien Waddell, Inc. is a general contractor, construction management and commercial construction company, headquartered in Gaithersburg, MD. For more information visit www.therrienwaddell.com or call 301-770-2275

 

 


1st Annual Maryland AGC Safety Awards Program

 

The Safety Committee have been diligently working on our first ever Chapter Safety Awards. This Program will offer our members the opportunity to evaluate their safety record with other Maryland AGC members taking into account member size and construction type.

 

 

How to enter: You must provide your OSHA 300A information for 2008 and 2009 through November 1, 2009 to us at the chapter office by December 1, 2009.In addition, you must participate this year to be eligible for an award next year, with an exception for new members.

 

 

The committee are meeting June 4th to finalize the details, so check your mailboxes we'll be mailing the entry forms to your Safety Director.

 

 


Welcome New Member- American Mechanical Services of MD, LLC

 

American Mechanical Services of MD, LLC
8039 Laurel Lakes Court
Laurel MD 20707
P: (301) 206-5070 F: (301) 206-2520
www.amsofusa.com
Point of Contact with AGC: Dawn Rau


Welcome New Members - J. Vinton Schafer & Sons, Inc.

 

J.Vinton Schafer & Sons, Inc.
1309-A Continental Drive
Abingdon MD 21009
P: (410) 335-3000 F: (410) 335-6529
www.jvschafer.com
Point of Contact with AGC: Warren Hamilton


Welcome New Members - DECA, Inc.

 

DECA, Inc.
6501 Harford Road
Baltimore MD 21214
P: (410) 254-3955 F: (410) 444-0725


Another Benefit of Maryland AGC Membership!

 

One of the most important benefits Maryland AGC members receive is a top-notch lobbying team in Washington working to protect and advance their interests.

 

We know that Steve Sandherr, AGC of America CEO, and Jeff Shoaf, our chief lobbyist, are superb advocates. But it's not just us saying so - AGC of America has been recognized as one of the nation's top lobbying operations by The Hill newspaper, one of the widely read periodicals targeting Congress and the advocacy community within Washington, DC.
AGC was singled out as the only commercial construction association on this list.


Contractors Must Prepare for the Next Hard Market

 

Managing risk will help make the best of an unpredictable insurance market.

 

In 2008 the U.S. lost more than three million jobs, the most since 1945. Thus far, 2009 has proven equally challenging. Credit markets are still frozen, halting thousands of construction projects across the country. The news is grim everywhere you turn, and if economic experts are right, we may not see a turnaround until late 2009 or 2010. For property and casualty insurance buyers, another fear is that the insurance market will transition from a soft market-a time of declining insurance premiums-to a hard market, when premiums rise rapidly and underwriters are less willing to assume risk. In the face of other economic challenges, a steep rise in insurance costs could push some companies over the edge.

 

The good news is that while the hard market will inevitably happen, it's not here yet. The supply of competitive insurance products is down because of four years of declining premiums. Despite the collapse of investment income and increased catastrophe claims payments, demand is also down because companies have reduced their exposure of property values, revenues, payrolls and vehicles. The downward pressure on both supply and demand is keeping insurance premiums low for the best-performing risks, at least in the near term. But this situation results in unpredictability. Insurance carriers are feeling internal pressure to raise rates, yet at the same time they need to keep premiums affordable to fend off their competitors, who are eager to swoop in and take over their customers.

 

Add in the almost daily bad news about top insurance companies like AIG, Hartford, XL and others, and the insurance market can get really confusing. So what can you do about it? We've put together a few thoughts to help you take advantage of these uncertain times.

 

 

Profit Avenues
The first step in saving money on premiums is knowing why the insurance marketplace is changing. In simplistic terms, insurance companies make money from two principal sources:

 

Investment income is at an all-time low, and underwriting profit is also being squeezed by catastrophic losses from hurricanes and insurance products tied to the financial sector. Faced with the need to write profitable business, insurance companies are taking a closer look at clients' loss ratios-losses or claims as a percentage of insurance premiums-as a first step in their underwriting process.

 

Reduce Your Losses
The best way to gain control over your long-term insurance costs, regardless of market fluctuations, is to reduce your losses, the dollar value of insurance claims. Every dollar you spend on insurance can be broken down as follows:

 

The message is that losses drive the long-term cost of insurance. Reduce your losses and you will ultimately reduce your total costs. Once you gain reliable control over your losses, a world of other risk-management options opens up to you. If you can't, you'll be helplessly tossed about by the waves of the insurance marketplace.

 

Now is the time to fine-tune your company's safety program and claims management processes. But you don't need to do it alone. Make sure you are fully utilizing the resources of both your insurance company and your insurance broker. It's not difficult, but it does take focus. Analyze your losses. Figure out what is causing the biggest and most frequent losses. Create a plan to reduce the behaviors that are behind them. Take action. Measure and monitor the results.

 

Alternative Risk Financing
Once you have a handle on your losses, you may want to start thinking about taking on more risk. Why pay premiums for losses you may never have? Two options to consider are large deductibles and captive insurance. Both offer the ability to save money if your losses are low, and they offer protection from the rising standard insurance premiums of a hard market.
With large deductible programs, you take responsibility for paying the first $100,000, $250,000, $500,000 or more of each workers' compensation, general liability or automobile insurance claim. The insurance company then pays for losses above the deductible level you choose. The advantage of this type of program is that the cost of your insurance policy will decrease significantly-55% to 65% less than a no-deductible policy. The risk is that you'll have to pay for most of your own losses. With captive insurance, you essentially set up your own insurance company. Rather than paying premiums to someone else, you pay premiums to yourself. Rather than letting someone else invest your premiums and keep the money they don't pay out in claims, you keep it for yourself. There are many different types of captive insurance, but the basic principle is the same-keep your losses low, and you keep the investment income and underwriting profit you otherwise would have lost.

ABOUT THE AUTHOR:
Scott Kegler
Producer
Scott Kegler is a Producer with The Graham Company. In this role he is responsible for new business development, technical expertise, and client satisfaction. He specializes in working with the construction industry and is an active associate member, speaker, and author for the Associated General Contractors (AGC), Construction Financial Management Association (CFMA) and Utility Transportation Contractor's Association (UTCA). Scott graduated in 1995 from the University of Pennsylvania with a Bachelor of Arts Degree in Economics.

We thank Scott Kegler, The Graham Company, for this article. He can be reached at (215)-701-5269 or skegler@thegrahamco.com. Visit the company's website www.grahamco.com


Feds Postpone E-verify Rule until June 30, 2009

 

Federal contractors will now have until June 30 before they have to use the E-Verify system to check the eligibility of their employees to work in the U.S.

 

The Obama administration postponed the date the electronic verification rule would apply to government contractors and subcontractors in order to have more time to review it, according to U.S. Citizenship and Immigration Services. The rule was issued by the Bush administration in November.

 

Business groups have filed a lawsuit challenging the rule, contending the government doesn't have the authority to make use of E-Verify mandatory. Congress created the E-Verify system as a voluntary program, they noted. More than 117,000 employers now use the Web-based system, which compares information supplied by employees with government records.

 

"We applaud the administration's decision to take more time to re-evaluate its questionable policy mandating E-Verify use for federal contractors," said Robin Conrad, executive vice president of the National Chamber Litigation Center. "We are hopeful that they will agree that E-Verify is the wrong solution at the wrong time."


Construction Industry Accounts for Less Than One Percent of Annual Green House Gas Emissions According to New Analysis

 

Despite Low Emissions, Construction Association Urges Companies to Follow Simple Steps Being Used to Reduce CO2 Emissions and Save Fuel

 

 

ARLINGTON, VA - The construction industry accounts for less than one percent of all U.S. green house gas emissions according to a new analysis of federal environmental data from the U.S. Environmental Protection Agency (EPA). The Associated General Contractors of America found that all equipment used by the construction industry contributed less than 0.95 percent of all U.S. man-made greenhouse gas emissions in 2007.
The newly released data shows the relative efficiency of a construction industry that currently accounts for over five percent of the U.S. workforce and over 800,000 small businesses, the association noted.
"This data shows that we aren't just constructing cleaner projects, we're building a cleaner construction industry," said Stephen E. Sandherr, chief executive officer of the Associated General Contractors of America. "As good as our accomplishments are, we can do even better."
Sandherr said contractors around the country are taking steps to further reduce their emissions and urged other companies to follow suit. Construction contractors are, for example, turning equipment off instead of letting it idle; maintaining their equipment; using equipment that is properly sized for the specific job; using lower-emitting fuels; and finding local sources for building materials to cut shipping-related emissions.

 

In addition to curbing emissions, Sandherr noted that the construction industry recycles more than any other industry. For example, the industry recycles 97.5 percent of structural steel, 65 percent of reinforcement steel and 80 percent of asphalt. Together that amounts to almost 180 million tons of material recycled and 75.7 million tons of CO2 emissions avoided each year, Sandherr said.

 

The association also urged construction companies nationwide to review a recent EPA report for additional suggestions on ways to reduce emissions. The report, titled "Potential for Reducing Greenhouse Gas Emissions in the Construction Sector" can be found online at http://www.epa.gov/sectors/pdf/construction-sector-report.pdf.

 

 


AGC Building Contractors Conference

 

The AGC Building Contractors Conference will be held June 10-13, 2009 at The Homestead in Hot Springs, Virginia. The Building Contractors Conference brings together many of the top building construction firms, specialty contractors, service and supply companies, design professionals, and owners, who participate through the AGC Private/Public Industry Advisory Council (PIAC). In January and June of each year, this Conference attracts 100+ leaders in the building construction industry.

 

 

This June, these industry leaders will gather to focus on the theme "Guiding Your Firm Through Tough Economic Times." Come hear presentations by Rob Nichols, President & COO of The Financial Services Forum, join other experts such as AGC Chief Economist Ken Simonson and Scott Winstead of FMI Corporation and participate in discussions on how to navigate the market and take advantage of hidden opportunities, in addition to the latest on the economy, Building Information Modeling (BIM), economic stimulus, federal labor law, and environmental policy. Several networking opportunities make this conference an event you don't want to miss!

 

WHEN: June 10-13, 2009
WHERE: The Homestead
1766 Homestead Drive
Hot Springs, VA 24445
http://www.thehomestead.com
ATTIRE: Business Casual
FEES: Registration: $299.00
Owner Registration: If you are employed by an owner organization, your registration fee is waived. Please contact Rockkie Dunton at meetings@agc.org for more information.


Card Check is bad for union workers, too

 

By: Stephen E. Sandherr, OpEd Contributor - | 5/5/09 4:54 AM

 

Thanks to Sen. Arlen Specter's change of party, prospects are improving for the Employee Free Choice Act, or Card Check.

 

 

Democrats' expanding majority means passage of "compromise" legislation is significantly more likely. While such a compromise may sound reasonable, there is nothing to stop congressional leaders from reverting back to much of the original Card Check language after that first crucial Senate vote.

 

 

Ironically, if Card Check-by-another-name were to pass, one group that stands to be hurt the most is union workers, especially construction workers, in states like Pennsylvania where region-wide collective bargaining is relatively common.

 

 

That is because whatever is ultimately enacted is sure to retain requirements that federally-appointed arbitrators set pay and work rules if employees and employers cannot complete a contract within 120 days. While the intent of that provision is to ensure that newly unionized businesses don't delay negotiations, the ramifications for union construction workers are severe.

 

 

Having Washington-appointed officials set contract terms for companies would make it harder to maintain collective bargaining through area agreements. Those area agreements set wages, hours, and work rules for union workers for a variety of firms in a given region. The agreements also allow union members to work for different employers during their career because their health and pension benefits remain portable and reliable.

 

 

Newly unionized employers forced into arbitration are likely to have wages and benefits different than those in the area agreement. If those are less than what is in the area agreement, the ability to seamlessly move from one employer to the next will be undermined. Union workers will instead be forced to choose between staying with a single company even when there is no work or reduced wages and disrupted benefits contributions.

 

 

A final bill will lead to increases in jurisdictional disputes that delay employment opportunities for union workers. The bill may encourage unions that are successful in organizing workers to claim work on a multi-craft basis. This will inevitably lead to multiple unions at a single job site claiming that particular work, and the pension contributions that come from it, belong to them.

 

 

These kinds of disputes traditionally lead to work stoppages that idle union workers and threaten the long term viability of any manner of projects. Worse, because these delays and disputes lead to increased costs in fields like construction, private owners would be more likely to avoid using union contractors with Card Check than they are today, needlessly punishing union construction workers.

 

 

Many union leaders and many union firms also are under the mistaken impression that the card check bill will bolster union pension funds. The theory is that if more employees are organized in the industry, there will be more pension contributions made into union funds that will help stabilize them in an uncertain investment environment.

 

 

However, employers whose workers are organized under Card Check are likely to maintain their own benefits plans during the negotiations for that first contract. Since there is no guarantee that arbitrators will force employers to contribute to union plans if existing benefit programs are found to be adequate, the legislation may actually weaken union pensions, instead of strengthening them.

 

 

Backers of Card Check, or the inevitable "compromise," should be careful of what they ask for. The price for a quick boost to national union enrollment is simply too high for construction workers. After all, if new and existing unionized workers get caught in jurisdictional disputes, see new risks to their pension contributions or can't enjoy the benefits of area agreements, no good will come of making it easier to unionize.

 

 

Stephen Sandherr is the chief executive officer of the Associated General Contractors of America, which represents both union and non-union construction firms nationwide.

 

 


AGC Webinar - Are You Ready to Contract for Federal Projects?

 

When - July 9, 1:00 - 2:00 pm ET
Federal Contracting can be complex, and so can the contracts. The ConsensusDOCS 752 is the first and only standard subcontract agreement for Federal construction projects that is compliant with the most recent contracting requirements and practices found in the Federal Acquisition Regulation (FAR). ConsensusDOCS 752 will be used as a guide to help explain:

For those new to Federal Contracting or those who need a clearer understanding on Federal Contracting Contracts.

Cost $99 members $229 non-members


Flexible Fuel Vehicles Top 6 Million

 

The high cost of gasoline, concerns about our nation's dependence on foreign oil and warnings about global warming, are generating increased interest in alternative fuels such as E85. Compared to today's gasoline/ethanol blends that have up to 10 percent ethanol, E85 is composed of 85 percent ethyl alcohol (ethanol) and just 15 percent petroleum.

 

E85 is designed for use in flexible fuel vehicles (FFVs), which can switch easily from using regular gasoline to E85. Although miles achieved per gallon for E85 may be slightly below vehicles fueled with regular-unleaded gasoline, the price of ethanol blends has been considerably less expensive.

 

FFVs typically are offered as standard equipment, with little or no incremental cost. They are available in a wide range of models, from sedans and sport utility vehicles to pickup trucks and minivans. New models arrive yearly from manufacturers such as Chrysler, Ford, General Motors, Isuzu, Mazda, Mercedes, Mercury, Nissan and Toyota.

 

According to the Energy Information Administration, there currently are more than six million light-duty FFVs in the United States and in 2009 nearly 50 FFV models are available.

 

But, despite growing popularity, many owners are not aware that their FFV can be fueled either with E85 and/or gasoline interchangeably. One reason for the confusion may be that FFVs are designed with only one fueling system. Owners can find out whether a vehicle is included by checking their owner's manual, checking the fuel filler door, or viewing a list of current model year FFVs, available from the National Ethanol Vehicle Coalition at http://www.e85fuel.com/e85101/flexfuelvehicles.php.

 

In many ways ethanol is an ideal transportation fuel. In addition to its positive environmental qualities, it is domestically produced and its use supports farmers and rural economies. Currently, 10 percent ethanol is added to approximately one-third of all the gasoline used in the United States. Adding ethanol to gasoline not only fulfills oxygenate requirements for federal clean air programs, it also increases octane and extends the petroleum fuel supply.

Considering FFVs for a Company Fleet

 

For businesses considering how FFVs fit into a fleet management program, cost is always a concern. Generally, manufacturers offer FFVs at the same prices as comparable gasoline vehicles. The U.S. Department of Energy also offers an online tool that calculates cost by type of vehicle and state based on availability of fueling locations. The calculator, which is easy to use, is available at http://www.afdc.energy.gov/afdc/progs/cost_anal.php?0/E85/

 

In addition to costs, other considerations include the following:

 

In addition to ethanol, alternative fuels include natural gas, propane, hydrogen, pure biodiesel, electricity, methanol and p-series fuels. Based on information provided by the U.S. Department of Energy's Alternative Fuels Data Center, using any of these alternative fuels in vehicles can generally reduce harmful pollutants and exhaust emissions, and most of these fuels can be domestically produced and derived from renewable sources. For more information, visit http://www.eere.energy.gov or http://www.e85fuel.com.

 

Mark Powell is Group Sales Manager for Enterprise Fleet Management in Baltimore and can be reached at 410-412-4620. He is supported by an experienced team of veteran mechanics and accredited Automotive Service Excellence (ASE) technicians to serve the fleet maintenance needs of businesses with mid-size fleets. In addition to maintenance management programs, Enterprise's services include vehicle acquisition, fuel management and insurance programs, as well as vehicle registration, reporting and remarketing. Visit the company's web site at www.enterprisefleet.com or call toll free 1-877-23-FLEET.


New Member Benefits

 

Have you spoken to Jonathan Butwin at Staples yet, if not you might want to call/email him and start saving on your office supplies.You can reach Jonathan at Jonathan.Butwin@Staples.com or by cell phone (443)326-3130.
Do you shop at Jos. A. Banks? If so, mention Maryland AGC, Corporate Company # 344134 and save 20% on all regularly priced merchandise. The discount is valid for online, in-store and catalog purchases.


Bookstore Featured Product

 

Contractor's Guide to Green Building Construction LEED

 

This "how-to" book enables you to meet the challenges of green building construction. It introduces how the "green" or "sustainable" elements of a project may impact construction management principles. It briefly covers the available green building rating systems and guidelines such as LEED® and Green Globesy. 2008.

 

Item No. 5100.