SPECI AL SECT ION: CONSTRUCT ION TECHNOLOGY

EXECUTIVE
Construction
January 2007 THE MAGA Z INE FOR THE BUSINESS OF CONS TRUCT ION

BIM ALSO: 2007

T H E

CONSTRUCTION
FORECAST

R E V O L U T I O N
 contents
January 2007
c onstruc t ion e xecut i ve

f e at ure s
12 2007 Construction Forecast
Check out what the economy has in store for various seg-
ments of the construction industry, including commercial,
educational, manufacturing, lodging, transportation and more.

22 Dave Meyer: An Industry Standout

With a strong background in family business and community
leadership, Dave Meyer is poised to take the helm of Associ-
ated Builders and Contractors as 2007 national chairman.

28 The Importance of a
Professional Liability Application

12 In order to get the best rate on professional liability insur-

ance, contractors should be prepared to provide underwrit-
ers with information on the firms business practices, loss
history, projects, clients, services and more.

36 The BIM Revolution

Though not without its challenges, building information
modeling promises to streamline the building process and
create a more integrated work environment for designers,
contractors and owners.

45 Special Section: Construction Technology

46 Estimating in 3-D
48 IT Ambition for the Contractor

22 28 54 How to Maintain Profitability

in Good Times and Bad

Department s
4 On the Level
6 Washington Update
8 Construction Headlines
10 Legally Speaking
58 Risk Management
62 Workforce Development
64 Product Gallery

36

70 Around the Nation
72 Community Spotlight

February Preview
Look in next months issue for coverage of military-related
construction and a special section on construction law.
COVER: PHOTO COURTESY OF BENTLEYS BE AWARDS OF EXCELLENCE PROGRAM.

 | Construction Executive January 2007

 on the level
b y K i r k P i ck e r e l The Magazine for the
Business of Construction

Happy New Year!

Publisher
M. Kirk Pickerel, CAE
President/CEO
Construction Executive celebrates its fourth anniversary with this issue of the magazine. Executive Editor
Gail A. Raiman
We hope you continue to enjoy the full range of articles and special sections in the Vice President, Public Affairs
magazine. We always look for new ideas and certainly welcome your thoughts on top- editor-in-Chief
ics you would like to see covered in upcoming issues. In the coming months, look for Lisa A. Nardone
A s s i s ta n t E d i t o r
cover stories on military construction, historical restoration, commercial construction
Lauren Pinch
and workforce development. S ta f f W r i t e r
In an effort to provide our readers with infor- Joanna Masterson
mation highlighting the latest trends, this issue Design and Production
The Magazine Group
features an article on a new wave of technology
advertising and Reprints
for the construction industryBuilding Informa- Donald R. Berry,
tion Modeling (BIM)which has the potential National Sales Manager, (908) 852-7466
dberry@constructionexec.com
to revolutionize the entire construction process Stephen B. Donohue,
from design to completion. Whether your com- Regional Sales Manager, (609) 654-4568
sdonohue@constructionexec.com
pany stays on the cutting edge or approaches
technological innovations with caution, you can Construction Executive (ISSN 1544-3620, Vol.
16, No. 1) is published monthly by Associated
learn a lot from the article on BIMs future in Builders and Contractors Services Corp., 4250
North Fairfax Drive, 9th Floor, Arlington, Virginia
the industry. 22203. (703) 812-2000. U.S. subscription rates:
Forward-thinking contractors also will want $15 a year for members of Associated Builders
and Contractors; and $65 a year for non-
to peruse the 2007 Construction Forecast for an members. 2007 by Associated Builders and
Contractors Services Corp. All rights reserved.
economic outlook by construction sector. Of note, Periodicals postage paid at Arlington, Va., and
additional mailing offices.
education-related construction will likely lead the
pack in 2007 and beyond. With student enroll- Postmaster:
Send address changes to:
ments from elementary to university levels soaring, the demand for new construction Construction Executive
ABC Services Corp.
and renovation projects will continue through 2010. Other hot markets include com- 4250 North Fairfax Drive, 9th Floor
Arlington, Va. 22203
mercial, health care and lodging.
With the start of the New Year, Associated Builders and Contractors welcomes Dave Editorial Advisory Board
Meyer of The Meyer Companies, Inc., Lees Summit, Mo., as its 2007 national chairman. Roberta Adams, TDIndustries
Michael Bellaman, Bovis Lend Lease
Construction Executive interviews Dave about his career in construction, his companys spe- Carole L. Bionda, Nova Group
cialty and growth, and his outlook for ABC in Dave Meyer: An Industry Standout. Michael G. Conley, DuPont Company
Heres to a successful 2007 for everyone. Mike Goodrich, BE&K
Dave Meyer, The Meyer Companies, Inc.
Kevin Miller, Brigham Young University
Michael ODea, Purdue University
Bill Pinto, Hardin Construction Company
Kirk Pickerel Jack Rafn, Rafn Company
Hugh L. Rice, FMI Corporation
Publisher
Greg Spenner, Associated Builders and
Contractors, Iowa Chapter
jeffrey prehn

 | Construction Executive January 2007

 washington
update
A Threat to Merit Shop Construction
For the past 70 years, private sector
labor law has been governed by three core
principles under the National Labor Rela-
tions Act (NLRA):
1. employees have the right to a secret-
ballot election to decide whether they
want union representation;
2. once a union has been properly selected,
employers still have the right to refuse to
enter into an agreement with the union as
long as they bargain in good faith; and
3. the act is remedial in nature, meaning
violations should not result in punish-
ments that exceed the amount of the
violation.
The newly elected Congress is consid-
ering a bill known as the Employee Free
Choice Act (also called the card check bill),
which challenges these pillars of labor law.
If passed, the card check bill would sweep
aside decades of precedents and would
pose a grave threat to employers.
The first section of the bill would elimi-
nate the right of employees to a secret-ballot
election on the subject of unions, in favor of
checking authorization cards unions collect
from employees and submit to the National
Labor Relations Board. The card signing
process would have none of the protections
of secret-ballot elections, and employees
would potentially be subject to peer pressure,
threats and miscommunication throughout
the card signing process. Employers might
not know a card signing campaign is under
way and could lose any opportunity to speak
to their workers about unionization.
The U.S Supreme Court has held under
existing labor law that it is beyond dispute
that a secret-ballot election is a more accu-
rate reflection of the employees true desires
than a check of authorization cards. In its
Gissel decision, the court further declared:
It would be difficult to imagine a more
unreliable method of ascertaining the real
 | Construction Executive January 2007
regul atory a nd leg i s l at i v e ne ws
By Maurice Baskin
wishes of employees than a card check.
Beyond the card check provisions, the
bill would require unionized employers to
submit to compulsory arbitration of their
first union contracts. Thus, for the first
time in the NLRAs history, every aspect
of private businesses wages and working
conditions would be dictated by the federal
government (through enforcement of the
arbitration decision).
To date, the law has been clear that par-
ties to collective bargaining can or should
be compelled by the government to reach
an agreement. As the Supreme Court held
in its H.K. Porter decision: It was recog-
nized from the beginning [of the NLRA]
that agreement might in some cases be
impossible, and it was never intended that
the Government would in such cases step
in, become a party to the negotiations and
impose its own views of a desirable settle-
ment. The court strongly implied that
a contrary ruling would be unconstitu-
tional. Congress and other court decisions
have uniformly agreed that no bargaining
agreement should be imposed on a private
employer withou its consent.
The proposed language of the Employee
Free Choice Act, however, directly con-
tradicts this long-standing and constitu-
tionally mandated precedent. For the first
time, the act would require employers to
accept an agreement imposed by an out-
siderthe involuntarily selected arbitra-
torwhose decision would be enforced
by the federal government.
Compulsory arbitration has been
described as the antithesis of free collec-
tive bargaining. Numerous commentators
have observed that arbitration of contract
terms (as opposed to grievance arbitration)
in the private sector often will fail to satisfy
the needs of either party, and is less likely to
take into account the many competing con-
siderations governing a private business. In
particular, compulsory arbitration discour-
ages the parties from offering compromises
in bargaining for fear they may prejudice
their position in arbitration.
The record of compulsory arbitration
in the public sector is decidedly mixed and
is constrained by a complex web of factors
not present in the private sector. In the past,
representatives of both labor and manage-
ment have opposed compulsory arbitration
of bargaining agreements in the private sec-
tor. Nevertheless, the proposed card check
bill would mandate such arbitration in the
absence of agreement between employers
and unions.
Finally, the proposed card check bill
would impose new penalties against
violators of the NLRA, eliminating its
remedial purpose in favor of punitive
sanctions. Construction employers, who
regularly face salting-related charges under
the act, could be subjected to the crippling
fines at the behest of union activists who
have suffered no actual damage.
Enactment of the card check bill would
radically depart from decades of settled
labor law, and the negative impact on merit
shop construction could be dramatic.
Baskin is a partner with the law firm Venable
LLP, Washington, D.C., and general counsel
to Associated Builders and Contractors.
In the new 110th Congress, passage of
the Employee Free Choice Act remains a
priority for the labor movement. However,
organizations such as ABC and the U.S.
Chamber of Commerce are leading the
charge and counting on the support of al-
lies in Congress and in the White House to
ensure this legislation is never enacted into
law. For more information, contact Danielle
Ringwood at ABC, ringwood@abc.org.
 construction
headlines By Joanna Masterson

CURT Recognizes Workforce Development,

Safety Programs
WITH ITS FOURTH annual Workforce Development Awards, the Construction Users Roundtable
(CURT) honored a select group of organizations for their efforts in implementing effective recruitment
and training programs that develop top-notch craftsmen and managers. CURT received applications
representing national trade associations, contractors, unions, local labor-management associations,
owners, educational institutions and public school systems. The 2006 winners were: Associated Build-
ers and Contractors, the National Center for Construction Education and Research, Albany Techni-
cal College, Wyoming Contractors Association, Associated General Contractors of St. Louis and the
Building Trades Employers Association.
CURT also bestowed awards to industry leaders with excellent records of site safety. Winners of
the sixth annual Construction Industry Safety Excellence Awardsgiven in various Standard Industry
Codeswere: Bancroft Construction Company, Wilmington, Del.; Gilbane Building Company, Provi-
dence, R.I.; Triple S Industrial Corporation, Lumberton, Texas; BE&K Construction Co., Birmingham,
Ala.; and Harper Limbach LLC, Sanford, Fla. Honorable mentions went to L Con Constructors, Houston;
S&B Engineers and Constructors, Ltd., Houston; and Blaine Construction Corporation, Knoxville, Tenn.

develop new ways to reduce construction

New Grant Aims to Shorten Construction Timelines
THE FEDERAL HIGHWAY Administra-
tion recently presented $1 million grants
to Iowa, Minnesota and South Carolina
through its Highways for LIFE program.
As part of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Lega-
cy for Users legislation signed by President
Bush in 2005, the program allows states to
schedules while making roads last longer
and cost less to maintain.
Iowa plans to reconstruct an inter-
change using prefabricated bridge sections
that can be built away from the roadway
and installed overnight, sparing drivers
months of work-zone congestion. Minne-
sota will reconstruct a portion of Highway
36 in Minneapolis/St. Paul using a full road
closure for five months, and South Carolina
will use a no excuses clause in a con-
struction contract for meeting the specified
completion date on a bridge project.

[ Industry Events Calendar ]

World of Concrete Technology for American Institute World of Asphalt
Jan. 2326 Construction of Architects March 1922
Las Vegas Jan. 2326 Design-Build Summit Atlanta
Las Vegas March 89
Kansas City, Mo.

 | Construction Executive January 2007

Scaffolding Tops
List of Most Cited
OSHA Standards
WITH MORE THAN 9,000 violations, the
scaffolding standard was the most frequent-
ly cited safety and health standard in fiscal
year 2006, according to Occupational Safety
and Health Administration (OSHA) data.
Other standards on OSHAs most frequently
cited list include fall protection, hazard com-
munication, respiratory protection, control of
hazardous energy, powered industrial trucks,
wiring methods, general machine guarding,
ladders and general electrical.
OSHA also issued data on 2006 cases
with the highest total penalties. With penal-
ties totaling $2.415 million, BP Products
North America had the highest number of
violations at its facility in Oregon, Ohio.
USCIS will continue to process peti-
tions filed to: extend the stay of a current
H-2B worker in the United States; change
the terms of employment for current H-2B
workers to extend their stay; allow current
H-2B workers to change or add employers
and extend their stay; or request eligible H-
2B returning workers. For more information,
visit www.uscis.org.
CMAA Reports
on Compensation Trends
A RECENT STUDY by the Construction
Management Association of America
(CMAA) reports the average annual salary for
construction management professionals was
$116,825 in 2006an increase from $112,191
the previous year. Sixty-seven percent of the
more than 400 respondents expect a 1 percent
to 5 percent salary increase in 2007.
CMAA says the average salary is higher in
companies in which more than 100 employ-
ees are construction, program or project
managers, and that salaries are highest in
companies with more than 10,000 employees.
The survey also found strong support for
professional development among employers,
with 86 percent offering tuition reimbursement
and 95 percent offering financial support for
continuing education.

Immigration Service
Extends Returning
Worker Exemption
U.S. CITIZENSHIP AND Immigration
Services (USCIS) has extended through
Sept. 30, 2007, an exemption that excludes
returning workers from counting toward
the annual cap on the number of petitions
submitted for temporary H-2B visas.
The agencys H-2B program permits
employers to hire foreign workers to travel
to the United States to perform temporary FAA Anticipates $41 Billion in Airport Work
nonagricultural work. To qualify for an H-2B A NEW REPORT from the Federal Aviation Administration (FAA) estimates $41 billion in
visa, the job and the employers need must airport construction will be eligible for federal grants during the next five years. The FAA
be one time, seasonal, peak load or in- is required to provide Congress with this estimate every other year so lawmakers can
termittent, the job must last less than one decide which airports receive federal funding under the Airport Improvement Program
year and there must be no qualified and (AIP). In 2004, Congress authorized $14.2 billion for AIP over four years.
willing U.S. workers available for the job. Infrastructure projects funded by the AIP are intended to help airports meet
The extension, which was mandated un- design standards and ease congestion. According to the study, 27 percent of the $41
der the National Defense Authorization Act billion is needed to meet standards, 20.6 percent is needed to increase capacity, 17.3
for Fiscal Year 2007 (H.R. 5122), exempts all percent is for reconstruction and 16.8 percent is for terminal work. The report also
returning workers who have been counted noted the fastest-growing sectors in airport construction are pavement reconstruction
against the H-2B cap in one of the three fis- ($7.1 billion), runway safety ($1.9 billion) and security ($1.3 billion).
cal years preceding the current year.

Associated Builders American

www.abc.org/newsline
and Contractors Subcontractors Want a weekly review of the most up-
National Convention Association Business
to-date construction headlines, including
March 2125 Forum and Convention
Nashville, Tenn. March 2224 legal, regulatory and political news affect-
Tucson, Ariz. ing the construction industry?
Visit Newsline, the online newsletter
published by Associated Builders and
Contractors, at www.abc.org/newsline.

January 2007 Construction Executive |

 L e g a lly S p e a k i n g
By N ata l i e DA mor a
Traps for the Unwary:
Releases in Project
Documents
D ocuments executed during
the course of a construction project may
contain provisions that release important
performed on [the project], contract
or event transpiring prior to the date
hereof, excepting the right to receive
rights of the contractor, including waiv- payment for work performed and prop-
ing rights to recover for certain types of erly completed and retainage, if any,
claims. Generally, releases appear in two after the date of the above-mentioned
types of documents: change-order docu- payment application or invoices.
ments and payment applications. A con- The court said by signing the pay-
tractor that signs a document containing ment application containing this release,
a release could lose its right to recover for the contractor released all claims incurred
additional work or claims for compensa- before the date of the payment application,
tion for delays and/or inefficiencies. including those for extra work.
Change orders
Legal Effect can be a common
of Releases
Checklist occurrence on a
Releases may be over- Does the project have standard forms project. From a
looked by contractors for change order requests, change legal perspective,
that view them as part orders or payment applications? they are significant
of the form language Do the change order and payment agreements that to negotiate with an owner regarding the
of the project docu- application forms contain a release? modify the par-
ments. However, it is Does the change order or payment ties original agree-
important for a con- request form reserve the contractors ment. Therefore, a
tractor to determine right under the original contract? release contained in
if the change order or an executed change
payment application contains a release. order could be deemed to modify provi-
If it does, by signing the document the sions in the contract that are beneficial to
contractor could waive its right to recover the contractor. For example:
on valuable extra work and delay claims. The contractor acknowledges that
Courts may enforce releases even if a party it has inspected the work on the proj-
claims it did not intend to release the right ect and has been compensated for any
at issue, particularly when language of a delays or inefficiencies. By accept-
release is clear and unambiguous. ing this change order, the contractor
For example, a subcontractor was barred releases the owner from any delay or
from recovering the cost of the extra work inefficiency claims that arose prior to
it performed on the project when it signed this change order.
a payment application that included the A contractor that signs a change order
following release: containing such a release may be deemed
In addition, for and in consideration to have waived all delay claims accruing
of the amounts and sums received, the prior to the date of the release. Contrac-
contractor hereby waives, releases and tors should be wary of any provisions in
relinquishes any and all claims, rights change orders or payment applications
or causes of action whatsoever aris- containing terms like release, waive, sur-
ing out of or in the course of the work render, relinquish, abandon, etc.
10 | Construction Executive January 2007
One important protection for contrac-
tors under the law is that generally courts
will not enforce a release that purports to
release claims that have not yet accrued as
of the date of the release.
Protecting Your Rights
The best way to avoid problems with
releases is to agree on the forms to be used
for change orders and payment applica-
tions prior to entering into the contract
with the owner. Unfortunately, this is
sometimes not possible in bidding situa-
tions where the contract terms are gener-
ally not negotiated, and the contract pres-
ents a take-it-or-leave-it situation.
After entering into the contract, a
contractor still may have an opportunity
forms. One suggestion is to use the standard
American Institute of Architects (AIA)
change-order forms and payment applica-
tions, which do not contain releases.
A contractor may attempt to reach
agreement with an owner to include a
statement in the forms that explicitly
reserves rights. A sample reservation
of rights clause is included in the AIA
Application and Certificate for Payment
(AIA G702), which provides that Issu-
ance, payment and acceptance of payment
are without prejudice to any rights of the
owner or contractor under this contract.
As a last resort, a contractor may refuse
to sign a change order or payment applica-
tion. However, if the contractor refuses to
sign, the owner may have the right to refuse
to pay for work the contractor performed.
DAmora is an associate in Dilworth Pax-
sons Philadelphia office. For more informa-
tion, call (215) 575.7288 or email ndamora@
dilworthlaw.com.
2007
Institutional, Infrastructure
sectors Accelerate as
to deflate, after buoying the industry
for the first half of the decade. On a
percent-change basis, the downturn
matches what took place during the early
1990s, McGraw-Hill says. Forecasts esti-
mate the construction of single-family
housing units decreased 15 percent in 2006.
Condo sales also slipped 15 percent.
While disappointing, the housing
decline wont deliver a severe blow to the
rest of the construction economy. In fact,
Homebuilding Shifts into Low Gear if single-family housing is excluded from
the overall volume of construction starts,
Its the start of a new year for the construction indus- then 2006 activity would be up 12 percent,
according to McGraw-Hill.
trya time to look back on accomplishments, evaluate The non-residential construction indus-
try in 2007 will continue to prosper, with the
what went wrong and prepare for whats ahead. Can the institutional, manufacturing, public works
and electric utility segments leading growth.
industry sustain its record-setting momentum in 2007? Although the nation anticipates a soft eco-

Looking back on accomplishments,

contractors can boast about across-the-
board expansion, with total construction
activity reaching new heights. In 2006, the
amounts of retail, hotel, office, multifam-
ily, amusement and health care projects all
increased substantially. Public works and
highway construction accelerated as well.
McGraw-Hill Construction reports
that total new construction starts edged up
approximately 1 percent to $672 billion.
Compiled by But 2006 also will be marked as the
L a u r e n Pi n c h year when single-family housing began

Construction F
12 | Construction Executive January 2007
 nomic landing, with growth slipping from
an estimated 3.4 percent in 2006 to about
2.5 percent this year, the slowdown could
mean less pressure on commodity prices
and a slower rate of increase for the cost of
building materialspotentially good news
for construction firms. (See sidebar, p. 32)
States will continue to support insti-
tutional construction programs as rising
student and elderly populations put pres-
sure on existing facilities. Infrastructure
repairs, especially in the Gulf Coast, will
keep contractors busy.
The 2007 construction market will be
a mix of pluses and minuses, with the net
result that the forecast for total construction
is $668 billion, a modest 1 percent decline,
according to McGraw-Hill.
The following offers a snapshot (excerpted
from FMI, a consulting firm based in Raleigh,
N.C., and McGraw-Hill forecasts) of what
to expect in various construction industry
market segments this year.
Commercial
Retail, wholesale and selected service
industries, including the automotive and
food and beverage industries, will continue
positive growth through 2010.
FMI predicts commercial construction put
Forecast
in place will increase 32 percent from $78.9
billion in 2006 to $104.3 billion in 2010.
The retail industry continues to per-
form somewhat well, attracting inves-
tors interest despite a number of national
retailers announcing plans to close stores
or decrease planned openings, FMI says.
Total sales volume for regional malls
has slowed recently, with only 12 regional
malls switching hands during the first
quarter of 2006. One reason for the slow-
down is investors are finding fewer quality
assets for sale, FMI reports. As an excep-
tion, Lord & Taylor, a unit of Federated
Department Stores Inc., and Michaels
Stores Inc., were bought out by NRDC
Equity Partners and Bain Capital/Black-
stone Group, respectively.
Sales volume for national strip shopping
centers dropped by as much as 12 percent
between the first quarter of 2005 and the
first quarter of 2006, FMI reports. These
centers, often anchored by large grocery
stores, face competition from big-box mer-
chants and bulk warehouse retailers.
Although big-box retailers like Wal-
Mart continue to expand, these stores
face opposition in big cities and challenges
moving into markets with higher land and
labor costs.
Vacant shopping center space was
expected to grow by 377 million feet by
the end of 2006, according to FMI.
Rising interest rates, higher gas prices
and the cooling housing market could fur-
ther depress consumer spending and nega-
tively affect this construction segment.
Educational
Education is the largest nonresidential
building marketbased on the value of
total constructionfor both new con-
struction and renovation projects through-
out the nation. Activity rose 11 percent
in the first quarter of 2006 compared to
the first quarter of 2005, with more than
$19.6 billion of public construction in
place, according to FMI.
School construction will be a lead-
ing growth market in 2007, with rapidly
increasing student populations at all edu-
cation levels, widespread overcrowding
and antiquated facilities driving the need
for new and renovated buildings.
FMI expects $116.2 billion of construc-
tion put in place by 2010, with an average
growth rate of 8 percent to 10 percent in
the near future.
Demographics and local school bud-
gets play a part in where new construction
takes place.
According to FMI, states leading
growth in primary education facilities in
2006 (based on number of projects) were:
California, Texas, Ohio, Florida, North
Carolina, Georgia, Virginia, South Caro-
lina, Illinois and New York.
States leading growth in secondary
education facilities in 2006 were: Arizona,
California, Texas, Ohio, South Dakota,
Nevada, Delaware, Connecticut, Michi-
gan and Iowa.
Schools are bursting with high enroll-
ment; more than 55 million elementary,
middle and high school students enrolled
in classes across the nation in 2006. And
January 2007 Construction Executive | 13
2007 Construction Forecast
the Department of Education predicts the
nations elementary and secondary school
populations will grow by approximately
200,000 students annually, reaching an esti-
mated 56.7 million students in 2014.
The increase in the student population
can be partially attributed to immigration
growth in certain regions of the country.
Enrollment in colleges and universi-
ties is at an all-time high and is expected
to increase more than 19 percent over the
next seven years. Partnerships between
research and education departments within
universities continue to demand new con-
struction of technologically advanced lab-
oratory facilities. Construction will include
new student housing, modernized public
spaces and new amenities to meet student
expectations.
New design trends will reflect smaller
learning communities within larger
schools, sufficient space for multipurpose
use, room for technology, public space
for the community and environmental
sustainability.
As material costs continue to escalate,
many schools will opt to renovate rather
than build new. Modernizations will keep
contractors busy with modifications to
aged framing, mechanical, electrical and
plumbing systems. The National Center
for Education Statistics reports the aver-
age school building in the United States is
42 years old, with 28 percent of the facili-
ties being built before 1950.
Private K12 school construction also
plays a part in the construction boom.
Nationally, private institutions plan to
add an average of 15 percent more facili-
ties each year.
Green Building
McGraw-Hill Construction forecasts that
by 2010, between 5 percent and 10 per-
cent of new nonresidential construction
starts will be built using environmentally
sustainable practices. The green building
market is predicted to be worth between
$10.2 billion and $20.5 billion by 2010.
In 2005, the states with the highest
number of U.S. Green Building Council
LEED projects were California, Pennsyl-
vania, Washington, New York, Oregon,
Texas, Massachusetts, Michigan, Illinois
and Virginia.
According to a McGraw-Hill survey,
86 percent of the architecture, engineer-
14 | Construction Executive January 2007
ing and construction community reports
participation in green building activities.
LEED continues to evolve, with a newer
version released in 2005 that includes an
online submission process and the option
to split certification submission in two
phases (design and construction). In 2006,
the U.S. Green Building Council launched
LEED version 3.0 to encompass new tech-
nical and scientific advancements.
Health Care
Construction spending in the health care
segment will remain strong in the long
term. In 2006, the value of health care
construction put in place exceeded $41
billion, and FMIs projections indicate this
figure will increase by 11 percent in 2007
to approximately $45.6 billion.
But in terms of construction starts,
McGraw-Hill Construction predicts
moderation for both hospitals and clinics,
reporting a decrease of 2 percent to 105
million square feet in 2007.
Still, substantial hospital and health care
facility projects are under way nationwide.
In late 2005, the leading states in new hos-
pital construction were Illinois, South Caro-
lina, Colorado, California, Ohio, Texas and
Oregon, with more than $1 billion in health
care construction under way in each state.
The aging U.S. population, new tech-
nologies and changing environmental
requirements shape decisions about new
hospital design and location. New features
in construction include private rooms,
2007
accommodations for family members,
energy efficiency, reduced noise, wireless
infrastructure and more space for advanced
medical technology.
Existing hospital and health care facili-
ties also will undergo substantial renova-
tions to meet modern safety and seismic
requirements and prepare for natural and
manmade disasters. Overall, renovation
projects account for roughly one-third of
health care construction.
Mergers and acquisitions among health
care providers and insurers will continue
to transform health care construction pat-
terns in the 21st century.
Also, the Veterans Affairs (VA) medi-
cal system has shifted from a network of
inpatient facilities to a network of smaller
outpatient facilities that offer a full con-
tinuum of care. The proposed 2007 bud-
get includes $714 million for six major
VA health care construction projects in
Colorado, Wisconsin, Missouri, California
and Washington. New construction will
provide facilities dedicated to treating spi-
nal cord injuries, blindness, serious mental
illness and long-term care.
Overall, forecasts indicate national
Zubin Shroff/Getty Images
health care spending will exceed $4 trillion
by 2015, accounting for more than 20 per-
cent of the U.S. gross domestic product.
Lodging
The lodging industry continues to experience
a strong recovery, and hotel construction is
set to gain momentum through 2010.
2007 Construction Forecast

FMI forecasts $15.6 billion of lodging By 2010, manufacturing construction

2007
of 12.2 percent nationally, while vacancy
construction to be put in place in 2007, put in place will grow 55 percent from rates for suburban office space remain
followed by a 9 percent increase in 2008 $33.4 billion in 2006 to $51.7 billion. slightly higher, averaging 14.6 percent
to $17 billion. Less than 10 percent of all industrial nationally, FMI reports.
According to PriceWaterhouseCoopers space was vacant in the second quarter of Rents may increase as this sector improves.
Hospitality Group, hotels saw record prof- 2006, marking the third consecutive year Grubb & Ellis, a commercial real estate advi-
itability with $25.2 billion in income before that this number has dropped. sory firm, forecasts a 5 percent increase in
taxes in 2006, followed by an expected Leading growth will be ethanol and rents for Class A downtown office space and
increase to $29.7 billion in 2007. petrochemical plants, as well as pharma- a 6 percent increase for rents in suburban
Lodging Econometrics, a research firm ceutical and biotechnology production regions by the end of 2006.
specializing in hotel real estate, reported facilities. Automotive plant construction Since mid-2005, large corporate profits
3,436 projects in the construction pipeline will pick up slightly, with starts of major have triggered the creation of 1.8 million
at the end of the second quarter of 2006. assembly plants for Honda in Indiana and net new jobs, and one-third of these new
Trends show that hotel owners aim Kia in Georgia. jobs were in employment segments that
to cater to multiple generations, includ- However, market globalization and for- required the use of office spacecreating
ing younger business travelers, by offering eign outsourcing may threaten the recov- a need for new office buildings.
modern conveniences and technology in ery in this sector. Vacancy rates will remain low in down-
guest rooms. town office districts, due in part to tax
In addition, hotels now cater to the Office incentives for tenants. According to real
international traveler, with visits to the Despite a brief slowdown in office con- estate services firm CB Richard Ellis,
United States increasing by about 7 percent struction from 2001 to 2003, FMI predicts markets with the lowest vacancy rates
in 2005, according to PriceWaterhouse- office construction will grow steadily, with include Manhattan; Orange County, Calif.;
Coopers. An improving global economy, yearly growth of 6 percent to 8 percent Charlotte, N.C.; Washington, D.C.; Las
combined with a weak dollar, make travel between 2007 and 2010. Vegas; and Fort Lauderdale and Orlando,
more appealing to foreigners. Somewhat favorable economic condi- Fla. Markets with the highest vacancy
tions enable the absorption of existing rates include Detroit, Dallas/Fort Worth;
Manufacturing office space to continue. As vacancy rates Columbus, Ohio; Louisville, Ky.; Kansas
The manufacturing construction market, decrease in many areas of the country, new City, Mo.; and Atlanta.
which includes the chemical, petroleum/ office development and renovation takes
coal, computer/electronic/electrical and place to satisfy demand. In New York and Power/Electric Utilities
food/beverage/tobacco industries, will Chicago, for example, notable high-rise Power construction spending will reach
rise to $38.1 billion in 2007, a 14 percent projects will break ground this year. $37.8 billion in 2007, a 5 percent increase
increase over 2006 activity, according to Vacancy rates have dropped signifi- from 2006 spending. This segment will
FMI. cantly in downtown districts to an average likely continue to grow between 5 per-
cent and 6 percent through 2010, FMI
reports.
2007: In a Nutshell Coal plant construction will outpace
Single-family housing will retreat further, as the inventory of unsold homes depresses natural gas plant construction as high
construction activity. A 5 percent dollar volume decline is expected, corresponding to natural gas prices cause gas-fired plants to
a 7 percent decline in the number of dwelling units to 1.275 million. be less economically competitive. The U.S.
Income properties will decline 1 percent in dollar volume and 4 percent in square feet.
Department of Energy is currently track-
Condominium projects will decrease, and store construction will decrease because of
ing about 135 planned or proposed coal
a weaker residential sector.
Hotel construction will remain at the high level achieved in 2006.
plants designed to meet current emission
Offices and warehouses will see moderate growth. requirements. Also, new legislation could
Institutional buildings will advance 7 percent in dollar volume and 4 percent in square require existing plants to modify structures
feet. States fiscal health and recently passed bond measures will benefit school to reduce pollutants, creating more proj-
construction growth. ects for contractors.
Health care construction will ease from its record contracting during the past two Global oil production is expected to
years, but remain steady. rise by 2.6 million barrels a day in 2007,
Manufacturing building will rise 14 percent, led by ethanol plants and refineries. But and increased investment in oil refinery
the amount of manufacturing plant construction will still be well below the 1997 peak. constructionboth for new plants and
Public works construction will grow 5 percent, on top of the 10 percent increase in 2006.
upgradeswill likely occur as a result.
Highway and bridge construction will rise 9 percent, given more federal financing.
Also, 157 natural gas pipeline projects,
Environmental projects will advance 2 percent.
accounting for more than 9,500 miles of
Electric utilities projects will increase 20 percent, following a 65 percent jump in 2006.
new pipeline, are proposed for development
Source: McGraw-Hill Construction between 2006 and 2008, according to the
Energy Information Administration.
16 | Construction Executive January 2007
2007 Construction Forecast
McGraw-Hill Construction also pre-
dicts steady growth in the electric transmis-
sion line category, following the 65 percent
jump in construction activity in 2006.
Public Safety
FMI predicts the value of public safety
construction put in place will continue to
grow steadily until 2010, with an overall
increase from $11 billion in 2006 to $15.5
billion in 2010.
Inmate populations continue to grow
at an estimated 3 percent to 5 percent per
year. Two-thirds of the inmate population
resides in federal prisons while state pris-
ons house the remaining one-third.
Ten prison-system populations grew by
more than 5 percent between June 2004 and
June 2005. The top three states were Mon-
tana (up 7.9 percent), South Dakota (up 7.8
percent) and Minnesota (up 6.7 percent).
Crowding is partially due to longer
sentences and an increase in drug and
immigration convictions. In California, for
example, approximately 167,000 inmates
crowd jails, many of which operate at
double capacity.
The federal governments focus on ille-
gal immigration is expected to result in a
24 percent increase in immigrant detainees
by fall 2007.
Budget deficits and reduced funding
for federal prisons will continue to drive
the need for public-private partnerships to
reduce the long-term costs of constructing
safe and adequate facilities.
According to the Department of Jus-
tices Bureau of Justice Statistics (BJS), pri-
vate corrections companies manage more
than 12 percent of all federally sentenced
offenders and approximately 6 percent of
state inmates, and these figures continue
to increase.
Recreation and Amusement
In the next four years, the amusement and
recreation construction sector will return to
profitability. Construction activity jumped
14 percent in 2006 and will grow another
7 percent this year, according to FMI.
These figures are considerably high
compared to relatively flat activity in the
past five years.
Factors affecting this sector are house-
hold disposable income, leisure time, safety
fears and traveling costs. The over-55
population, set to increase by 40 percent
18 | Construction Executive January 2007
2007
Materials Prices:
Leveling Off, But Still High
Materials prices will increase more slowly in 2007, compared to the alarming price
hikes that took place in recent history.
The producer price index issued by the U.S. Department of Labors Bureau of
Statistics indicated a 10 percent jump in the cost of materials in 2004, mostly due to
a sharp rise in steel prices and demand from China. Prices rose another 5 percent in
2005 as a result of supply disruptions caused by hurricanes. In 2006, prices rose 7
percent in the first eight months compared to the same period a year ago.
Copper wire prices climbed 73 percent in 2006 as a result of tight inventories and
speculation in the commodities markets. Luckily, forecasts predict copper prices will
settle back to normal in 2007 as production increases.
Asphalt paving materials climbed 27 percent in 2006, but the retreat in oil prices
may exert some downward pressure on asphalt prices this year.
Gypsum prices rose 23 percent and cement prices rose 14 percent in 2006. The
price of gypsum will level off in 2007 due to the slowing housing market and the
groundbreaking of several gypsum plants.
Cement prices rose approximately 14 percent in 2006, and prices will remain at
a high level as infrastructure work demands the material. According to the Portland
Cement Association, worldwide portland cement consumption increased 5.6 percent
in 2006 and will rise another 5.5 percent this year. Developing economies in Asia, the
Middle East, Eastern Europe and South America will play a critical role in consumption.
To help ease the burden, clinker capacity additions will begin in 2007.
Steel prices will remain high, but supply capacity from China and rising steel inven-
tories in the United States may help ease the price burden.
Lumber prices, however, were down 1 percent in 2006, and the housing slowdown
makes it unlikely prices will increase this year.
Sources: McGraw-Hill Construction; Portland Cement Association
between 2000 and 2010, will have more Religious
leisure time during retirement, influencing Although this segment lagged earlier this
construction growth. decade, the recent residential construction
Public fears, such as terrorist acts or boom led to a surge in the demand for
high gas prices, could restrict amusement church construction, with a total of $7.8
and recreation construction in the com- billion of religious facility construction put
ing year, though not as severely as in the in place in 2006.
earlier part of the decade. FMI forecasts only a slight increase in
Leading the growth are casino hotels. religious construction spending for 2007,
In 2005, MGM and Mandalay completed for a total of $8 billion, followed by an
a merger for $8 billion, and Harrahs and additional 3 percent increase in 2008.
Caesars completed a merger for $9.4 bil- Suburban and rural areas will witness
lion. Large casino construction invest- the most dramatic religious construction
ments and projects continue to emerge as activity.
revenues stabilize following these mergers. Construction of megachurches, those
For example, the $452 million casino por- with a weekly attendance of 2,000 or more,
tion of the Encore at Wynn project in Las will continue to be a trend. Average atten-
Vegas broke ground in 2006. dance at U.S. megachurches increased 57
Outside the Strip, Native American casi- percent from 2000 to 2005, while aver-
nos will develop in smaller cities, bringing age attendance at traditional churches
increased opportunities for contractors. increased 12 percent during the same
2007 Construction Forecast
period, according to a recent study con-
ducted by Lambert Edwards Analytics.
Another trend is the construction of new
churches in planned developments, where
the church shares parking spaces with a
business complex to reduce the cost of land
development for the church and help asso-
ciate the church with the community.
Transportation
Total transportation construction activity
put in place for 2007 will grow 8 percent
from 2006or $29.8 billion to $32.3 bil-
lionaccording to FMI.
Upcoming activity includes freight and
passenger rail infrastructure improvement,
airport facility updates, and port capacity
and security enhancements.
Estimates by the Association of Ameri-
can Railroads indicate that freight rail
traffic continued to grow in early 2006,
increasing 2.8 percent from 2005. Ben-
eficial to the railroad industry is renewed
interest in coal-fired power generation,
which will require creating a freight rail
infrastructure to transport more coal.
Commuter and light rail also will
become increasingly attractive to commut-
ers as high fuel prices, urban congestion
and suburban sprawl create transit prob-
lems. Statistics provided by the American
Public Transportation Association indicate
that light rail ridership rose by 20.8 per-
cent between 2000 and 2005. Commuter
rail ridership increased 2.8 percent in the
same period. The success of rail lines has
spurred interest in future rail projects in
communities nationwide.
Although airport construction spend-
ing decreased nearly 6 percent between
2001 and 2004, forecasts show guarded
optimism for this market segment.
Upcoming terminal expansions and secu-
rity enhancements will provide notable
opportunities for contractors, but funding
concerns will lead project owners to pur-
sue financing alternatives such as public-
private partnerships.
As levels of cargo traffic increased,
U.S. ports planned to spend $10.4 billion
between 2003 and 2007, up from $7 bil-
lion between 1998 and 2002. Construction
will focus on improving freight handling
capacity, port infrastructure modernization
and security enhancements. The Depart-
ment of Transportation anticipates total
freight moved through U.S. ports will
20 | Construction Executive January 2007
2007
United States
Estimated Construction Put in Place
Millions of Current Dollars
4th Quarter 2006
2006 2007 2008 2009 2010
RESIDENTIAL BUILDINGS
Single Family 403,814 3% 379,585 6% 394,769 4% 418,455 6% 451,931 8%
Multi Family 50,660 1% 53,194 5% 56,917 7% 59,763 5% 61,556 3%
Improvements* 167,490 2% 169,165 1% 174,240 3% 182,952 5% 195,758 7%
Total Residential 621,965 1% 601,944 3% 625,926 4% 661,170 6% 709,245 7%
NONRESIDENTIAL BUILDINGS
Lodging 13,950 16% 15,624 12% 17,030 9% 18,222 7% 19,498 7%
Office 50,028 8% 54,030 8% 57,812 7% 61,859 7% 65,570 6%
Commercial 78,926 10% 86,029 9% 92,912 8% 98,487 6% 104,396 6%
Health Care 41,060 12% 45,577 11% 50,135 10% 55,148 10% 60,111 9%
Educational 81,590 6% 88,118 8% 96,048 9% 105,653 10% 116,218 10%
Religious 7,799 3% 8,033 3% 8,274 3% 8,605 4% 8,949 4%
Public Safety 10,986 11% 12,084 10% 13,172 9% 14,357 9% 15,506 8%
Amusements and Recreation 21,674 14% 23,408 8% 25,280 8% 27,050 7% 28,943 7%
Transportation 29,864 10% 32,253 8% 34,511 7% 36,926 7% 39,511 7%
Communication 15,570 9% 16,659 7% 17,826 7% 18,895 6% 19,840 5%
Manufacturing 33,442 16% 38,123 14% 42,698 12% 47,395 11% 51,661 9%
Total Nonresidential Buildings 384,888 10% 419,939 9% 455,698 9% 492,598 8% 530,204 8%
NONBUILDING STRUCTURES
Power 35,979 6% 37,777 5% 39,666 5% 42,046 6% 44,569 6%
Highway and Street 73,134 9% 78,253 7% 82,166 5% 85,452 4% 88,016 3%
Sewage and Waste Disposal 20,514 15% 22,565 10% 24,370 8% 26,076 7% 27,641 6%
Water Supply 13,572 11% 14,793 9% 15,829 7% 16,779 6% 17,618 5%
Conservation and Development 5,909 10% 6,441 9% 7,021 9% 7,582 8% 8,189 8%
Total Nonbuilding Structures 149,107 9% 159,830 7% 169,052 6% 177,936 5% 186,032 5%
Total Put in Place 1,155,960 3% 1,181,713 2% 1,250,675 6% 1,331,703 6% 1,425,482 7%
*Improvements include additions, alterations and major replacements; not maintenance and repairs.
Source: Building permits, construction put in place and trade sources. Estimates and forecasts by FMI. This report is based on multiple sources.
increase by more than 50 percent from Water, Sewage and Waste
2001 to 2010, and international container Increased regulation, decreased federal fund-
traffic will more than double. ing and aging infrastructure will continue to
For highways and streets, total yearly affect the wastewater service industry, with
construction put in place will grow 7 percent 10 percent growth predicted in 2007.
in 2007 to 78.2 billion, up from $73.1 bil- Many of the 16,000 wastewater treat-
lion in 2006, according to McGraw-Hill. ment systems in the United States have
The primary challenge for the trans- exceeded their life expectancies, with
portation sector will continue to be fed- some sewer systems operating at 200 years
eral and state funding. Street and highway of age. The Environmental Protection
construction will remain somewhat steady Agency estimates the need for national
until the Safe, Accountable, Flexible, investment of more than $390 billion
Efficient Transportation Equity Act: A during the next 20 years to replace exist-
Legacy for Users expires in 2009. How- ing systems and build new systems. The
ever, the law cannot adequately fund all current administration has proposed 22
of the nations infrastructure improvement percent wastewater funding cuts in 2007.
demands, and large projects depending on Nationwide, increased residential and
federal funding could be delayed. commercial construction has strained
Public-private highway toll arrange- the nations ability to provide adequate
ments are helping to provide construction water supplies. According to FMI, water-
funding to states, including Illinois, Indi- related construction will total almost $14.8
ana, Virginia, Texas and California. billion in 2007, an increase of 9 percent
With asphalt prices surging 48 percent from 2006.
between May 2005 and May 2006, contrac-
tors will increasingly use recycled asphalt Pinch is assistant editor of Construction
for non-highway road construction. Executive.
Dave
Meyer
Growing up in Sweet Springs, Mo., a small farming community
about an hours drive from Kansas City, David Meyer never thought
hed spend 30 years in business with his two little brothers. But
thats what hard work and family dedication brought him, and in
March, The Meyer Companies, Inc. will celebrate its 30th anniver-
sary as a $45 million general contracting firm.

This month, Meyer takes the helm as

2007 Associated Builders and Contractors
(ABC) national chairman, another mile-
stone after nearly 20 years of participation
in the trade association.
Meyer graduated from Central Mis-
souri State University (now called the
University of Central Missouri) in 1969
with a degree in business administration
and found a job in banking shortly after
graduation. Five months later, he was
drafted into the Army. He trained at Fort
Sam Houston in Texas as a mediceven
though, he admits, biology was never his
strong suitand was picked for special

An Industry
BY LAUREN PINCH

22 | Construction EXECUTIVE January 2007

 clearance to work at an Army Security
Agency post. He shipped off to Turkey,
where he worked in the infirmary at a post
on the Black Sea across from Russia.
After serving in the Army, Meyer
returned home to work as a bank examiner.
Meanwhile, his brother Roger, younger
by two years, had made his way into the
construction industry working for a metal
building manufacturer in California.
I was becoming a little disenchanted
with the banking business, Meyer recalls.
My brother called from California and
asked if I wanted to get into the construc-
tion business with him. I thought for less
than a minute and said yes.
And thats how, in 1977, the family
business, Meyer Brothers Building Com-
pany, began in Lees Summit, Mo.
Roger and Dave Meyer first targeted
the local farm market, selling metal build-
ings to farmers whose buildings had been
destroyed by a recent tornado. They did
most of the muddy field work themselves

FAMILY BUSINESSMAN TAKES LEAD

OF ABC FAMILY
before they could afford to hire steel erec-
tors to perform the jobs.
Mark, younger than Dave by 13 years,
worked for the company during his sum-
mers off from school.
The brothers soon moved away from
the pre-engineered metal building market
and shifted the business toward general
contracting in the 1980s. They targeted
more work in the city and suburbs and
began to specialize in tilt-up concrete con-
struction for commercial, institutional and
industrial projects. Most of the companys
projects now are performed on a design-
build basis, and the company self-performs
much of the concrete work.

Standout January 2007 Construction EXECUTIVE | 23

A N I N D U S T R Y S TA N D O U T
I did not join ABC because it
was a construction association.
I joined because of its values,
beliefs and philosophy. I feel
privileged to be associated
with so many people that
share these ideals.
Dave Meyer
The business evolved into a family of
three companiesgeneral contracting,
development, and building repair/main-
tenance and tenant improvementsand
was renamed The Meyer Companies. Its
2005 volume was approximately $35 mil-
lion, and projections for 2006 are $40 mil-
lion to $45 million.
While most jobs are concentrated
within 150 miles of Kansas City, Mo., the
Th
Lees Su
Excelle
24 | Construction EXECUTIVE January 2007
Curriculum Vitae
Meyers recently developed a relationship
with a small general contracting firm in
the Phoenix area which will be assimilated
into the company.
Through all the growing pains, the
family maintains a close relationship. All
three brothers live near one another, while
their sister lives in Madison, Wis.
Weve always been close knit and thats
been an advantage, Meyer says. People
ing in
ange build
e B u s in ess Exch eived an ABC
., rec
mmit, Mo struction award.
e in Con
n c
Degree: Bachelor of science, business
administration, Central Missouri State
University, Warrensburg, Mo.
ABC Heart of America Chapter:
2nd Vice President (1997)
1st Vice President (1998)
President (1999)
Chairman of Executive Committee (2000)
General Contractor of the Year (2002)
ABC National:
Accredited Quality Contractor
S.T.E.P. Platinum
Government Affairs Committee, member
Legislative Team, member
Contractors for Free Enterprise (now Free
Enterprise Alliance), member/chairman
Government Affairs Coordinating
Committee, liaison
Member Services Coordinating
Committee, liaison
Workforce Development Coordinating
Committee, liaison
ABC Services Corp., board of directors
Executive Committee, member
Membership Growth Committee,
chairman
Trimmer Education Foundation, trustee
Board of Directors (19982000)
Region 2 Vice Chairman (20022005)
Chairman-elect (2006)
Community Service:
The Association of Industrial Develop-
ment, Independence, Mo., past board
member and president
Blue Springs Chamber of Commerce,
past board member and president
Blue Springs Economic Development
Commission, past board member and
president
Blue Springs Jaycees, past member and
officer
Blue Springs R-4 School Districts
Citizens Advisory Committee, past
member
Blue Springs Rotary Club, current
member
Blue Springs School of Economics, cur-
rent board member and past president
Independence Council for Economic
Development, past board member
Missouri Special Olympics State
Basketball Tournament, past member
and chairman
St. Marys Hospital Advisory Board,
past member
A N I N D U S T R Y S TA N D O U T

The Meyer Companies team, sitting from left: Bob Wolf, director of new
business development; Roger Meyer, founding partner; Dave Meyer, founding
partner; and Greg Fitzsimmons, director of construction management.
Standing from left: Rob Heise, principal of Heise-Meyer, LLC; Dennis
OGrady, vice president of operations; Tom Davis, CEO of Meyer Companies,
Inc.; and Mark Meyer, president of Meyer Brothers Building Company.

say theyre amazed were still together in
business after almost 30 years.
In recent years, Dave Meyer has led
the company into construction manage-
ment, development, real estate brokerage,
maintenance and property management
services as the chief operating officer of
the development branch of the company.
He recently helped a client in Blue
Springs, Mo., move into a larger office
26 | Construction EXECUTIVE January 2007
this
pany built
The com n theater in
14-scree Kan.
Topeka,
building through a unique leaseback
arrangement. The client found desirable
land for its future property, the city bought
the 11-acre parcel, The Meyer Companies
built the office building and leased it back
to the client. The city then decided the site
was a desirable location to build a hotel
and conference center and hired the firm
for the new projects.
It was a unique situation where we
used a lot of creativity to work with our
customer and the city to create the land-
lease opportunity, Meyer says.
Success stories like this one are what
make Meyer love his job.
I enjoy starting out with a piece of
raw ground and coming up with an office
building, putting together the ownership
group and financing, and then finding the
tenants for it, he says. I enjoy the com-
plete real estate cycle.
Hes also proud of the people he works
with every day, and makes a strong com-
mitment to their continuing education
and training. Employees can participate
in ABCs apprenticeship program for car-
penters and electricians; an in-house men-
toring program; a certification program
through the Tilt-Up Concrete Associa-
tion; OSHAs 10- and 30-hour training;
CPR training and more.
The company collaborated with the
National Center for Construction Edu-
cation and Research (NCCER) to start a
metal building apprenticeship for ABCs
Heart of America Chapter, supplied
instructors for the program and built
classroom space at Blue Springs High
School.
This type of leadership comes naturally
for Meyer, who ascends the ranks at most
every community, church and trade orga-
nization he joins. Recently, ABC became
his primary volunteer commitment. Meyer
says his passion for the merit shop philos-
ophy and the free-enterprise system makes
the time spent away from his business and
family worth the sacrifice.
I did not join ABC because it was a
construction association, he says. I joined
because of its values, beliefs and philoso-
phy. I feel privileged to be associated with
so many people that share these ideals.
Meyer has firsthand experience defend-
ing the merit shophes faced union
threats, battles with the National Labor
Relations Board and jobsite vandalism.
In 1980, when a union picket disrupted
the metal building construction at an
auto dealership, the Meyers sought advice
from industry friends, who pointed them
to ABC. The company has been a loyal
member of the Heart of America Chap-
ter ever since. Meyer joined ABCs board
of directors in 1995 with encouragement
from friend and colleague Patrick Shelley,
general manager of Service Electric, Inc.,
Blue Springs, Mo.
Now, as national chairman, Meyer
hopes to continue the momentum set by
his predecessors. I dont think its my job
The Briarcliff Village Shopping District,
Kansas City, Mo., also won an ABC Excellence
in Construction award.
to stop the flywheel in motion, he says. I
think our past leadership has gotten the
momentum going, and its my charge to
keep that momentum going.
Meyer plans to stick to the associations
strategic goal: When people think con-
struction, they think ABC. We are mak-
ing progress, but we have a long way to
go, he says. I want to emphasize that we
must continue to strive to be the leaders of
the construction industry.
He hopes ABC will grow to 24,000
membersor better yet, 25,000 members
under his leadership.
In addition to membership growth,
his pet projects include addressing the
construction workforce shortage, as well
as maintaining ABCs political voice on
health care reform, project labor agree-
ments and immigration reform.
Holding a position on the ABC Exec-
utive Committee for the past five years
has given Meyer and his wife, Lauri, the
chance to travel and meet construction
professionals across the country.
I look back at it, and its unbeliev-
able, Meyer says of moving up the ranks
of the association. There have been so
many standout moments, so many unique
experiences.
The Meyer brothers created a succes-
sion plan that included hiring the firms
current CEO, helping to relieve Dave of
some management responsibilities and
allow time for ABC travel obligations.
Lauri Meyer runs her own business, giv-
ing her the opportunity to travel when her
schedule allows.
She has become a part of the ABC
family as much as I have, Meyer says.
When hes not managing the business
and leading the construction association,
Meyer visits his three daughters, who live
in Oklahoma City, Okla., and Scottsdale,
Ariz.and still manages to squeeze in a
couple rounds of golf.
Pinch is assistant editor of Construction
Executive.
January 2007 Construction EXECUTIVE | 27

The Importance of a
Professional
Liability
Application
COMPLETING A PROFESSIONAL
liability insurance renewal application rep-
resents an opportunity for contractors to
reduce their total cost of risk.
When evaluating an application, insur-
ance underwriters first determine insur-
ance premiums. Underwriters evaluate an
application on both objective and subjec-
tive bases. Objectively, they look at things
like discipline, areas of practice, firm size
and loss history. Subjectively, they exam-
ine the quality of the firm, the rsums of
key players and the guidance the broker
provides. Based almost exclusively on this
one form, underwriters determine the pre-
mium for the next year.
The application is also an opportunity
to evaluate a firm once a year. Many of
the questions on the form serve as a risk
management audit for operations.
In most cases, an application is war-
ranted to the policy. If there are material
misrepresentations in the application,
insurance companies can void coverage. It
is imperative for the application to be an
accurate representation of the firms work
profile.
28 | Construction ExEcutivE January 2007
BY JE F F R E Y W. CAV I GN AC
The quality of a submission is critical.
It should be professionally prepared, com-
plete and include all requested attachments.
In addition, a principal of the firm should
write an executive summary to explain why,
from an underwriters perspective, the firm
deserves a favorable rate.
A specialist insurance broker can help
draft this letter. The broker also should
provide a letter profiling the firms posi-
tive attributes.
firm Profile
All insurance companies want a company
profile, including whether the firm is a
sole proprietorship, a partnership or a
corporation.
Named InsuredList not only current
entities, but also pre-existing entities.
The policy will provide coverage only
for those entities specifically listed as a
named insured.
Number of PersonnelThe number
of personnel is usually broken down to
principals, professional and technical
personnel, and other job classifications.
This gives underwriters an idea of the
overall quality of the staff, and also (when
compared to revenue) whether the firm
appears to be over- or under-staffed.
Professional AssociationsUnderwriters
want to know about the firms participa-
tion in professional associations because
this shows a commitment to the industry.
OwnershipUnderwriters want to know
if anyone else has an ownership interest in
the firm. Sometimes outside ownership
can compromise autonomy. The exposures
of a parent company must be evaluated
as well. In some cases, a parent company
will be specifically excluded. Underwriters
also want to know if any of the firms key
personnel have an ownership interest in
another entity because common owner-
ship can create conicts of interest.
Equity InterestNearly all professional
liability policies contain an equity interest
exclusion. If the firm has an equity inter-
est in a project over a certain percentage
(10 percent to 25 percent is common), the
project is excluded from coverage under
the policy. The preferred exclusion makes
an exception for third-party claims.
RevenuesIn order to arrive at the pre-
mium, underwriters calculate a rate based
on the application and multiply it by a
revenue number. Some insurance compa-
nies use the revenue number from the last
fiscal year, while others develop an average
 of prior years with the projected year.
Branch OfficesUnderwriters want to
know if the firm has any branch offices,
where they are located and what percentage
of gross revenues they generate. The break-
down of gross receipts by office location
is needed because premium is developed
in part by using territorial rating factors.
Premium taxes also may vary by state.
tYPes of serViCes
This section of the application deals with
the type of services the firm provides and
asks questions about environmental ser-
vices. How a firm categorizes its services
has a material impact on its rate.
A firm performing construction obser-
vation for projects designed by others may
have a higher exposure. The firm could be
held responsible for design errors or omis-
sions that it fails to recognize during the
construction observation process. A well-
written contractual provision exonerating
the firm from any work done by others is
appropriate.
Inspection as a stand-alone service also
can create problems. The scope of services
provision must adequately describe the
firms responsibilities. Disclaimer language
must make it clear that inspection services
involve professional opinions and not cer-
tifications, guarantees or warranties.
disCiPline
Certain disciplines have higher exposures
than others. Structural and geotechnical
engineering tend to be at the high end of the
range, while landscape architecture and sur-
veying tend to be at the low end. Architecture
and civil engineering are near the middle.
Application questions about the firms
discipline have a material impact on the
rate. Make certain that operations are clas-
sified appropriately.
ProJeCt tYPe
The types of projects a firm handles is an
important underwriting issue. Architectural
firms identical in all other respects will have
significantly different rates if one special-
izes in residential condominiums and the
other specializes in office buildings.
Residential projects tend to be the most
hazardouscondominiums in particular.
Underwriters consider office, restaurant
and retail building design to be the least
hazardous.
Period Under reVieW
Most applications ask for the percentage
of a firms gross receipts attributable to
projects during the last complete year.
tYPe of Client
Some clients are more litigious than oth-
ers. Developers, for example, tend to bring
more lawsuits than public owners. Foreign
projects also pose underwriting issues that
need to be considered.
ProJeCt deliVerY metHods
Underwriters typically want to know if
a firm is providing services in the tradi-
tional design-bid-build fashion through
builder led design-build or other meth-
ods. They ask about fast-track projects,
turnkey projects and construction man-
agement work.
From an underwriters perspective,
design-bid-build and design-build proj-
ects have similar underwriting exposures.
However, fast-track projects tend to create
high liability. The insurance industrys def-
inition of fast-track is a project in which
construction begins before all of the design
professionals drawings and specifications
are complete. Turnkey projects also have
greater exposures than typical design-bid-
build or design-build projects.
Construction Management (CM) is a
term that many in the insurance industry
do not fully understand. For the purpose
of professional liability, most underwriters
insure CM Advisory but will not insure
CM-At Risk.
(Note: Contractors professional liability
underwriters insure CM-At Risk.)
January 2007 Construction ExEcutivE | 29
p r o f e s s i o n a l l i a b i l i t y a pp l i c at i o n
BUsiness PrACtiCes
Underwriters want to know how well a
firm runs its business. They want to know
if a firm has:
a written quality-control manual;
procedures for reviewing all client and
subcontract agreements;
specification checklists;
procedural or technical manuals for
in-house and field personnel; and
continuing education and training programs.
They also want to know how a firm
contracts for services. Firms are considered
better risks if they use a standard contract.
Client-generated contract agreements are
much riskier. If a firm must sign these,
explain the steps the firm takes to review
the forms. Underwriters prefer firms use
professional association contract forms
tailored to the specific project.
Underwriters do not like client pur-
chase order forms, which are usually writ-
ten for contractors and contain uninsurable
warranty, insurance and indemnity provi-
sions. Underwriters also frown upon verbal
agreements. Although legal in some states,
such agreements tend to be convenient but
detrimental if litigation occurs.
30 | Construction ExEcutivE January 2007
loss HistorY
All insurance companies want information
about loss history for the past five to 10 years.
Every claim requires a supplemental
claim form. Include as much detail as
possible in these areas, and pay particular
attention to the question that asks: What
has the firm done to avoid a similar claim
in the future?
Underwriters ask, Is any member of the
firm aware of a circumstance which may
turn into a claim? A potential claim from
one year could result in an actual claim the
following year. Even when renewing with
the same insurance company, that company
could deny coverage if the potential claim
was not reported.
Prior to renewal each year, contact key
personnel to make certain they are not
aware of any claims or circumstances that
have not yet surfaced. Discuss any ques-
tions that arise with an insurance broker.
Take note of the following red ags:
Has the firm been asked to correct a
problem on a project?
Has the firm specified a product or pro-
cedure that is now known to be defective
or unfit for its designated purpose?
Has any member of the firm given a
statement or deposition, or testified in a
proceeding other than as an expert wit-
ness, relative to any problems on one of
the firms projects?
Is the firm aware of any unresolved con-
struction problems, delays or change
orders?
Has the firm made any goodwill payment
or waived any fees to avoid a problem?
Has a client stopped paying or commu-
nicating?
Prior insUrAnCe informAtion
Underwriters want to know who insured
the business in the past, prior limits of
liability, deductible and premiums, as well
as the previous retroactive date. Although
most underwriters honor a previous ret-
roactive date, make sure of this before
changing insurance companies.
QUotAtion oPtions
A firm can select limits and deductibles,
as well as any possible defense-sharing
endorsements, such as dollar-one defense
or shared expense.
Always obtain quotes for higher limits
p r o f e s s i o n a l l i a b i l i t y a pp l i c at i o n

Rating Factors
Rating Factor Debit Worst Case Premium Best Case Credit Premium
Initial Premium $50,000 $50,000
Territory +20% Southern California 60,000 Indianapolis -20% 40,000
Type of Work +25% Residential 75,000 Office Buildings -25% 30,000
Subcontractors 0% to -10% Uninsured 75,000 Insured -10% 27,000
Claim Experience +20% Higher than Expected 90,000 Lower than Expected -20% 21,600
Business Practices +25% Needs Improvement 112,500 Well-Managed Firm -25% 16,200
Premium Quote $112,500 $16,200

of coverage. It is not uncommon during the
year to be asked for higher limits by clients;
having these limits previously quoted sim-
plifies the process of determining that cost.
Additional Information
Underwriters often want to review addi-
tional information, such as:
Rsums for principals, partners and
officersUnderwriters compare areas of
experience to those services and projects
that generate a firms fees, and identify
any significant deviations.
Rsums also can determine whether the
principals have the appropriate licenses
or registrations required by the state.
A list of the firms 10 largest projects
This gives underwriters an idea of a firms
type of work.
A copy of the firms standard contract
formUnderwriters want to know that
in-house contracts are appropriately
written to provide a firm with necessary
contractual protections.
Brochures describing a firms services management procedures.
Periodically review websites and brochures
to make certain these do not misrepresent
the firms capabilities and activities.
Risk Profile
The application process provides under-
writers with what they need to determine
the risk profile. The table compares two
similar firms using worst-case and best-
case rating factors from a typical profes-
sional liability insurer.
A thoroughly completed professional
liability application not only materially
affects what a firm pays for insurance, but
also serves as a self-audit of business risk
A specialized insurance broker can help
a firm understand the application and
assist in completing it correctly.
Cavignac is president of Cavignac & Associ-
ates, San Diego. For more information, visit
www.cavignac.com.

34 | Construction Executive January 2007

 BIM
T H E

R E V O L U

THOUGH NOT
YET PERFECT,
SMART 3-D
MODELS PROMISE
TO BE THE
FUTURE OF
CONSTRUCTION
Bentleys Be AwArds of excellence ProgrAm

A model of the interior of the SBA Group office building in Vilnius,

Lithuania, as designed by Denmark-based PLH arkitekter.

36 | Construction ExEcutivE January 2007

 BY JOANNA MASTERSON B U I L D I N G I N F O R M AT I O N
MODELING. By now, many contrac-
tors know these three words are poised
to revolutionize the construction indus-
try. Even more important is the effect
BIM can have on business operations.
It promises to save time on grunt work,
allow for more design iterations, stream-
line quality control, reveal interference

T I O N
issues, reduce errors and omissions, pro-
vide more accurate cost estimates and
the list goes on.
Of course, BIM doesnt come with-
out challengeswhether legal, technical
or financialbut the move from 2-D
to 3-D and beyond appears to be here
to stay. Many industry members already
immersed in the technology are reaping
the rewards, including enhanced profit-
ability and a competitive edge.
The last big design shiftfrom
manual drawings to computer-aided
design (CAD)took about a decade
to become mainstream. Huw Roberts,
global marketing director at Bentley
Systems, Inc., sees BIM adoption hap-
pening exponentially faster.
Five years ago only the leading-
edge, sophisticated companies were
using it, he says of BIM. Over the
last couple of years, its been a tidal
wave of activity, and its accelerating.
Everybodys seeing competitors using
it. Everybody whos using BIM is doing
projects faster, better and more profit-
ably. Its not a cost or burden. Youre
going to be better off no matter which
way you measure the results.
BIM is well-suited for complex
projects, such as the ongoing renova-
tion and modernization of the Herbert
C. Hoover Building, a historic National
Landmark in Washington, D.C. Backed
by the U.S. General Services Admin-
istration (GSA), the project involves
restoring the exterior faade and install-
ing new building systems, life safety
systems, utility connections, security
upgrades and flexible office space. Start-
ing in 2007, all major projects receiving
design funding from GSA will require
some level of BIM technology.
BIM can be applied on a much
smaller scale as well, whether through a
pilot program or on one part of a whole
project. Roberts even used BIM to reno-
vate his home basement.
January 2007 Construction ExEcutivE | 37
BIM Revolution
In the long term, says Noah Cole,
senior communications manager of
building solutions at Autodesk, we
believe BIM will be adopted across the
industry, from design to construction and
operation.
Understand the Basics
BIM started gaining ground after a 2004
National Institute of Standards and Tech-
nology (NIST) study reported nearly $16
billion is wasted in the U.S. capital facili-
ties industry due to inadequate interoper-
ability among software systems and paper
records. Because almost every decision
about a buildings construction can be
made in the design phase of the project,
BIM serves as a way to reduce this waste.
NISTs National BIM Standard Com-
mittee defines BIM as a digital represen-
tation of physical and functional charac-
teristics of a facility. As such, it serves as a
shared knowledge resource for information
about a facility, forming a reliable basis for
decisions during its lifecycle, from incep-
tion onward.
Essentially, the model knows all,
including how its physical components
38 | Construction Executive January 2007
A series of building information models show
the exterior of the SBA Group office building
in Lithuania.
look (3-D), when each part of the building
will be constructed (4-D) and how much
each element will cost (5-D).
Marty Hedlund, project director for
Sundt Construction, offers this explana-
tion: In 3-D, the design simply shows a
group of lines shaped like an objecta
chiller, for example. In BIM, that object
is considered a smart object because it
knows its a chiller. It knows what its prop-
erties are. It knows how much power it
needs. It also can be told what its prede-
cessor and successor are in the project. It
can become a scheduling model because
the objects know in which order they go.
This information became invaluable to
Hedlund on a project in which he and his
superintendent had two different theories
on how to sequence the building. The pair
built separate 4-D models, ran simulations
and stopped to figure out problems and
compare results. We could make an intel-
ligent decision as a team because we had a
4-D model, Hedlund says.
Bentleys BE Awards of Excellence Program (3)
Say Goodbye to Silos
According to the NIST BIM committee,
A basic premise of BIM is collabora-
tion by different stakeholders at different
phases of the lifecycle of a facility to insert,
extract, update or modify the information
in the BIM to support and reflect the roles
of that stakeholder. The BIM is a shared
digital representation founded on open
standards for interoperability.
In short, its a team effort, and no room
exists for fragmented, silo-like work. In
order to allow collaboration, though,
interoperability must first be present. The
International Alliance for Interoperabil-
ity (IAI) describes interoperability as the
exchange of information among project
participants throughout the lifecycle of a
facility by direct communication between
software applications.
Because not every team member uses
the same software, a means for exchang-
ing the information must exist. The IAI
established Industry Foundation Classes
(IFCs) to help fulfill this need. IFCs allow
the complete model to be passed from
one participants computer application to
another with no loss of information.
BIM Revolution
IFCs are similar to what Hedlund called
smart objects. The model-based standards
specify how real things (e.g., doors, walls)
and their properties (e.g., size, cost) can be
represented electronically in the model.
IFCs are not able to solve all data
exchange problems, so interoperability
remains a concern for BIM users. But,
the National BIM Standard Committee
is working to improve data exchange by
setting a standard for typical processes and
computer-based exchanges of informa-
tion used during the conception, creation
and operation of facilities. (A draft of the
United States National Building Infor-
mation Model Standard was released at
press time.) NISTs standard is intended
to ensure information gathered through-
out the lifecycle of a building is collected
in a standardized manner so it is useful to
all parties involved.
In concept, its one conglomerate model
that serves all peoples purposes, Roberts
says. In practice, it will never be in one
file or in one type of software. You have a
shared model that is made up of a collec-
tion of different files and databases that are
linked and understood together.
The important thing for
construction executives to remember, he
continues, is that if youre working on a
project and you want to exchange informa-
tion, make sure the project specifies it is in
open standards so the contractor isnt held
hostage by any one software company.
This process requires a joint effort from
all parties involvedarchitects, contrac-
tors, engineers, owners, fabricatorsright
from the start.
40 | Construction Executive January 2007
You want key decision makers at the
table at the same time, says Scott Simpson,
president and CEO of The Stubbins Asso-
ciates, a design firm in Cambridge, Mass.
Under the old paradigm, you do the design
and the construction documentation, and
then the contractor would come in and do
bidding and pricing. With BIM, everyone
has a stake in the outcome. Everybody has
a voice in the process.
Models of the University of Michigan
Kellogg Eye Center and Diabetes
Research Center in Ann Arbor, Mich.
For Hedlund,
the process required
team clash detection
sessions. The model was
projected on the wall, a clash
report was distributed and the team
identified conflicts among the designs.
Then, they developed solutions as a group.
The modeler made the necessary changes
and by the time Hedlund returned to his
desk, updates to the model were already
being made.
Simpson says this process both
enhances results and lowers risk. Any
time you can get people around a table
with different points of view, youre going
to get better results, he says. Individuals
will make mistakes, but teams rarely do.
If you have experts make decisions as a
team, your risk of making mistakes goes
down.
Make an Investment
Most industry members are satisfied with
the theory behind BIM: New technology
allows building information to be stored,
shared and analyzed, which in turn allows
fewer translation errors and a faster,
cheaper design process. Paying for and
applying that technology, though, can be
a concern for executives deciding whether
to go forward with BIM.
The Stubbins Associates (2)
Executives should start by inviting a few
vendors to explain their software and then
evaluating which program is the best fit.
Simpson estimates it costs up to $50,000
to outfit a modeler with the appropriate
hardware, software and training. Also,
because many companies have some CAD
solution in place, vendors usually can offer
upgrade pricing on software.
For a staff already familiar with CAD,
Roberts and Simpson agree the learning
curve is manageable. Both say it takes
about a week to train an employee, and up
to eight months for staff members to really
feel comfortable with the process.
It wasnt painful, but it wasnt with-
out pain, says Simpson, whose firm has
completed 4 million square feet of BIM
projects. Its like switching instruments
in a family of instruments like from an
oboe to a clarinet.
With one successful BIM usage, Roberts
says the upfront software and training costs
will seem like a valuable investment. For
example, BIM can reveal if a steel beam inter-
feres with another element in the design, so
finding just one of those steel beams before its
on a crane can replenish the cost of software.
BIM Revolution

sent the model to a fabrication plant that

automatically made the pipes at the right
size and shape, resulting in savings to the
owner and an accelerated schedule.
With successes like these, Sundt felt
confident enough in the BIM process to

The Stubbins Associates (2)

Hedlund recalls a fast-track project in
which he was concerned about the amount
of pipe that needed to be fabricated in
a short amount of time. We built a
3-D model of a piece of the central plant
and put all the piping into the model and
made sure it was right, he says. We then
got the designers to agree they wouldnt
change anything in that part of the cen-
tral plan because the fabrication needed
to be done. With this guar-
antee in place, Hedlund
electronically
build its own headquarters using the tech-
nology. What better way to try and dem-
onstrate a new way of doing stuff than to
do it on our own headquarters where we
can control it better, Hedlund says. Its
not a horribly complex building but it
was perfect for trying something new.
The three-story, 67,400-square-foot
headquarterswhich will feature exte-
rior tilt wall construction, a structural
steel frame, interior raised access flooring
with under-floor air distribution, an exer-
cise room and a common lunchroom and
kitchenbroke ground about two months
ago and is expected to be complete in Octo-
ber 2007. Sundt also has six other projects
under way using fully integrated BIM.
Along the way, Hedlund and Simpson
encountered speed bumps, like software
bugs and personnel averse to change, but
those issues dont seem to be enough to
deter companies from investing in BIM.
Says Simpson: 3-D going into the
future is going to be much more efficient
than 2-D. We have to get over the hump,
but once youre on the other side, youll
never go back.

Joanna Masterson is staff writer for

Construction Executive.

Models of the
Boston University
Katzenberg Center,
completed in September
2006.

This investment, Autodesks Cole

notes, is only worthwhile if executives also
are willing to change the way they work.
There has to be an openness and willing-
ness to reevaluate existing workflows and
Sundt Construction/Smith Group

processes, he says. You cant just bring

in the software and BIM and expect it to
work with your existing process.

Start Small
One of the best ways to get started using
BIM is by implementing it in stages. Sundt Construction
Rather than doing an entire BIM proj- is using BIM to build
its future headquarters
ect right off the bat, use the technology to in Tempe, Ariz.
help solve isolated problems.
42 | Construction Executive January 2007
Construction
Technology

January 2007 Construction Executive | 45

[s P e c i A l section: construction technologY ]

e s t i m At i ng i n

3-D
c
bY PAt r ick moodY

onstruction estimating has come a long way from the days of but theyre not very impressive to paying
clients.
using a pencil and a sheet of paper. Computer spreadsheets may Although 3-D computer graphics are
commonly used in other industries, like
have initially seemed like a quantum leap from the cumber- medicine and aeronautics, the construction
industry has been slow to implement the
some manual method, but before long they gave way to semi- technology.
With the development of 3-D graphics,
automated, graphic-oriented estimating technology. contractors were afforded a dramatic new
level of functionality in their estimates. For
Graphic-oriented estimating technol- of what they were putting their money the first time, an estimator was able to tilt
ogy offered a tangible new dimension to into. up and down, zoom in and out and rotate
the work of estimators, who could see a But, graphic-oriented estimating tech- an image.
colorful representation of their project nology had several limitations. The static, Now, a newer graphic-oriented esti-
before a single nail had been hammered simplistic line drawings could be viewed mating technology can provide a real-
or an ounce of dirt had been moved. More only from limited perspectives. Isomet- time correlation between the list assembly
significantly, clients could get a better idea ric drawings may be just fine for drafters, and its graphical component. If an item is
46 | Construction ExEcutivE January 2007
 Au t om at e d
e s t i m at i n g
changed in the list assembly, that change w i l l en a b l e Already on the development horizon is
is automatically and immediately reflected con t r a c t o r s 4-D rendering, which gives an estimator
on the graphical representation. the ability not only to tilt, zoom and rotate
Further, a new expanded view enables t o b i d ou t mo r e the view, but also to move vertically.
an estimator to see all the elements of a work than No doubt, construction estimating
project. With the click of a mouse, all of ever before. technology will continue to become more
the components instantly separate, allow- sophisticated in both design and function-
ing them to be examined individually. The ality, even as its usage becomes simpler and
expanded view verifies a project is correct an endangered species, but with the auto- more automated.
and complete. In addition, the user can go mation of many of the tasks they typically
inside the expanded view to examine com- perform, they may shift their focus to proj- Moody is an industry analyst for Quest Solu-
ponents from the inside out. ect management. Automated estimating tions, Inc., Sarasota, Fla. For more informa-
Similar to many computer-based pro- will enable contractors to bid out more tion, email info@questsolutions.com, call (941)
grams, hover text helps the user identify work than ever before. 349-5400 or visit www.questsolutions.com.
each component of the expanded views.
As the cursor passes over each component,
descriptive text appears and remains until
the cursor is moved to another component.
In addition, saved projects build onscreen
as they are opened, allowing the user to see
all the layers of components applied from
the start of the project through its present
state of completion. This also helps ensure
no components are hidden.
Though list assemblies typically appear
on separate screens within an estimating
program, programs have been developed in
which the 3-D graphics and list assembly
appear simultaneously via a split-screen,
providing maximum convenience for the
user. Both also can be viewed full-screen
for a more thorough inspection.
Along with advances to the interac-
tivity of 3-D views, estimating programs
also have advanced realism in their
graphical representations. In other words,
steel looks like steel, concrete looks like
concrete and wood has a woodgrain
appearance. These advantages are mainly
aesthetic, but a contractors eye-catch-
ing final bid presentation can translate
directly into client satisfaction and addi-
tional job opportunities.
Going forward, 3-D modeling pro-
grams will have a tremendous impact on
construction estimating. The synchroniza-
tion of their databases with those of esti-
mating programs will enable contractors
to take a 3-D model and import itevery
door, every beam and every cost item
directly into an estimating program. An
estimator will be able to conduct a virtual
basement-to-roof walk-through of the
project, wowing the client with detail and
accuracy.
Ultimately, as estimates move toward
automation, blueprints may no longer
need to be digitized. Estimators are not
January 2007 Construction Executive | 47
[S p e c i a l Section: Construction technology ]

IT Ambition for the Contractor

M
By Christian Burger

any construction businesses have been quick to jump on the IT Internal Ambition Factors
Some companies have not kept pace with
bandwagon, but never really achieve solid footing. Some have technology or made an effort to standard-
ize processes. Employees already intimi-
learned valuable lessons along the way and have adopted better dated by technology often find an entirely
new system or process threatening. They
practices when it comes to managing both IT and automation view their value to the organization in rela-
tion to the one specific task they perform
expectations. (e.g., keying in timesheets). If field devices
for automatic time capture are introduced,
the employees may fear for their job secu-
Whether reading the latest industry Large-scale IT initiatives often require rity. They may not understand manage-
journals, meeting with other compa- far more energy and patience from an ment is planning to assign more ambitious
nies through peer groups or attending organization than expected. Ten years or valuable tasks to them. Fear of mak-
an industry conference, managers fre- ago, management would write a check for ing mistakes or not understanding how
quently wonder why their organization a new piece of software or hardware and the technology works are other common
does not get as much value from tech- then stand back, expecting new informa- concerns.
nology as others. This anxiety can lead tion and efficiency to magically appear. Employees also can become comfort-
to impulse purchases or initiatives that Many of todays senior managers are able controlling change orders, forecasts
are well intended, but not well thought more responsible. They involve the entire and commitments to make their jobs look
out. How can contractors better align organization in decisions and then commit better. Implementing a better integrated
their ambitions with their organizations the time and money necessary to ensure costing system exposes some of these hid-
capabilities? the implementation is successful. ing places, making it more difficult to
48 | Construction Executive January 2007
 manipulate results or work off the grid.
Senior management can do a lot to
alleviate these concerns and get the team
moving in the same direction. A presen-
tation about the upcoming change can
work wonders. It also helps to take the
pulse of the organization from time to
time, checking to see how employees feel
about a new piece of software. Sometimes
being heard is all employees need to move
to the
100 next step.

External Ambition Factors

While80 many contractors want to be out
in front of the competition when it comes
to technology, there is only so much com-
petitive advantage to be achieved. Some-
60
times construction companies spend far
more than they can return to the bottom
line. Or worse, they over-commit to an
40
unproven concept.
If a given technology has not been
proven, a contractor should ask if the
potential
20 returns or benefits are worth
the risk of being a pioneer. For many, the
answer is no. These companies would have
enough0
difficulty implementing estab-
lished systems that the market has already
tested and adopted.
The exhibit below can help companies
gauge their level of ambition. The circle
in the center indicates where the company
stands with current systems and technol-
ogy. The next ring represents a reasonable
level of ambition for the company, relative
to the market and available technology.
Contractors can apply reasonable resources
and reach a high level of success with tech-
nology within this inner ring. The orga-
nizational demands to get here also are
reasonable. For those who have the vision,
resources and commitment, the outer ring
represents the highest level of ambition
that is safe to undertake. Reaching this
level requires more time, effort and energy,
as well as greater levels of IT staffing.
Contractors must be careful when
evaluating large-scale solutions and long-
term prospects. For those with a moder-
ate budget, but lofty ambitions, it may be

Evaluating Technology Needs

Vender/Portal
B-i-C technology
HR

Imaging/
Workflow
Best-in-
Online
Class
Forecasting Integrated
PM
Systems PM
Today
Greater
Flexibility
Modest
Better HR Ambition

Greater
Ambition Integration
Technology

Movement outward from the center

increases risk and cost, as well
as IT and personnel commitment.

50 | Construction Executive January 2007

 If a given
technology has
not been proven, a
contractor should
ask if the potential
returns or benefits
are worth the risk
of being a pioneer.

prudent to go after a solution that allows

movement to the outer ring in a few years
but can be implemented to the inner ring
in the near term. Contractors also do not
want to under-purchase and end up being
constrained by their systems a few years
down the road.
By taking careful measure of the mar-
ket, the organization and the technol-
ogy alternatives, managers can make an
informed decision on how ambitious to be
when implementing new systems.

Burger is president of the Burger Consult-

ing Group, Chicago. For more information,
email cburger@burgerconsulting.com.

52 | Construction Executive January 2007

 W
[S p e c i a l Section: Construction technology ]

How to Maintain Profitability

In Good Times and Bad:
5 Ingredients for Success

Yves Lefevre/Getty Images

By Fred Ode

54 | Construction Executive January 2007

W
ith history as a guide, its likely the construction industry will
continue to experience peaks and valleys during economic
cycles. And, if the past really does help to predict the future,
business failures will surely increase as markets decline.
How is it that some companies sur-
viveand thrivein less-than-perfect
economic conditions? Like the ships cap-
tain who can weather a bad storm, success-
ful construction company owners know
exactly what steps to take to ensure they
are still afloat when the sun comes out
again. Long-term success, unlike short-
term profit, does not happen by accident.
Companies that withstand the highs and
lows of many economic cycles share some
common traits, starting with the following
five ingredients for success.
1
Focus
Whether its the result
of poor business man-
agement or excep-
tionally fast growth,
contractors often lose
focus of what their business should look
like. During periods of economic slow-
down, when there is not enough work to
go around, these companies lose jobs to
competitors with well-defined specialties.
Concentrating on a core area of business
allows contractors to develop their niche
and create a competitive advantage.
Unfortunately, many construction
companies start out in one area and try
to expand in too many directions, or the
wrong direction. A profitable paving con-
tractor, for example, may think the com-
pany has the right tools and equipment to
expand into underground utility work. But
it takes much more than just equipment to
venture into a new trade. It takes time and
resources, and possibly a very long learning
curve, to take on a new business.
In contrast, successful companies are
focused, yet open to new business opportu-
nities. With a sharply defined understand-
ing of their business, owners and managers
can make the changes necessary to grow.
Long-term goals, for example, may call for
adding complementary services, expand-
ing a customer base or increasing areas of
service. When companies take the time
to focus, the path becomes more clearly
visible.
2
Know Your Numbers
Business leaders must
have a firm handle on
their companys finan-
cial information or,
regardless of economic
conditions, the business is doomed to
fail.
Far too many contractors focus on their
trade expertise at the expense of their busi-
ness. Dedicating more time to everyday
operations than understanding the books
puts them at a serious disadvantage. For-
tunately, most construction executives can
learn to understand the numbers.
Successful contractors regularly review
at least six common financial reports.
These include (but are not limited to) the
balance sheet, the income statement, over-
head allocation, job cost reports, percent-
complete reports and cash flow. A num-
bers-focused executive is better equipped
to manage profitability and productivity,
while striking a balance between trade
expertise and business know-how.
With the help of easy-to-use con-
struction accounting software, CPAs
with expertise in construction and outside
consultants, nearly every contractor can
understand the numbers. If contractors
hope to be in business 10 years down the
road, their success depends on it.
3
Prepare While
Times Are Good
Business owners can-
not afford to become
too relaxed. Successful
companies are forever
reinventing themselves, especially dur-
ing favorable economic climates. Always
keenly aware of their competition and
their customers, they are ready to adapt
because they know that those who stand
still will soon be left behind.
January 2007 Construction Executive | 55
 So, how do companies prepare when
times are good? Without the pressures
that arise when business is down, com-
pany executives are in a position to make
much better decisions. They have the
ability to step back and look at each area
of business with a critical eye. This is the
time to shake things up by rearranging
departments or testing operations and
procedures for effectiveness and produc-
tivity. When revenues are up, the time is
ripe to evaluate competitive advantages
and invest in equipment and technolo-
gies that will leverage those advantages
in the future.
Make Difficult
4
Decisions
A newly hired project
manager is failing to
keep jobs on schedule.
A new business venture
is draining working capital. The estimat-
ing and accounting departments need
software upgrades, but the budget cannot
handle both. These are the kind of tough
decisions contractors face regularly. Rather
than risk making the wrong decision, many
construction executives choose to make no
decision at all.
The inability to deal with difficult deci-
sions can put a business on the fast track
to failure.
In his book, Tough Management,
author Chuck Martin says managers must
push tough decisions to the forefront of
56 | Construction Executive January 2007
discussions and deal with them quickly.
His three-step process is simple: collect
and consider as much information as pos-
sible, make the decision and communicate
it to the staff, and then move on. Following
these guidelines results in easier decision-
making, and the impact of each decision
becomes less consequential.
Does this mean that successful, long-
term contractors never make bad business
decisions? Of course not. But people learn
from mistakes, not from indecision. Even
a bad decision means something is set in
motion, and most bad decisions can be
reversed or redirected. Companies that are
paralyzed with indecision, or stay with the
status quo, will surely fold.
Use Technology
5
as an Accelerator
for Growth
Whenever technology is
mentioned in the world
of advertising, the word
solution is usually not far behind. Its no
wonder that many construction owners or
managers look to technology as a quick
fix. Successful contractors, on the other
hand, know that technology alone does
not solve problems. Instead, it should be
used to leverage strengths the contractor
already possesses.
Jim Collins, author of the best-selling
business book, Good to Great, says not
only do successful organizations think
differently about technology than medio-
cre companies, but they tend to become
pioneers in the application of carefully
selected technologies. The best way to
use technology, Collins argues, is as an
accelerator of momentum rather than a
creator of it.
Every contractorlarge or small, tech-
nically advanced or seriously behindcan
use technology to its advantage. The com-
pany must first identify its strengths and
long-term goals. As long as the company
can identify products that fit its business
and help accelerate its strengths, it can
begin to think like a leader instead of a
follower. For many companies, that will
make the difference between success and
failure.
Ode is CEO and chairman of Foundation
Software. For more information, call (800)
246-0800 or email fred@foundationsoft.com.
 Risk M a n a gemen t
By Jeff Whi ta k er

Who Needs
Pollution Coverage? A construction executive
with a firm that isnt involved with pollu-
tion-related businesses may feel the firm is
not exposed to a pollution loss. Many con-
tractors believe a general liability policy is
sufficient to take care of all the firms needs.
However, contractors dont have to
work in asbestos abatement or mold reme-
diation, or use silica, to be at risk for a pol-
lution loss. These days, just about everyone
is exposed.
Contrary to popular opinion, a general
liability policy contains a total pollution
exclusion. That exclusion has been refined
over the years to bar coverage for a host of
new and costly occurrences, ranging from
lead and asbestos pollution to avian influ-
enza. And, insurance carriers continue to
add more exclusions because of the sever-
ity of claims in the pollution area.
In the past five years, many high-profile
toxic mold cases helped bring the pollu-
tion insurance issue to light. The construc-
tion business remains generally blind to
this hole in insurance coverage because it
doesnt understand the risk involved. In
some cases, insurance brokers have failed
to help identify serious exposures.
The high cost of insurance also comes
into play. Often, the insured would rather
not pay any more for insurance than is
already being spent. When the market
turns and premiums go up, many firms
look to cut costs.
Typically, when contractors seek addi-
tional pollution coverage, its because a
claim or a near miss occurred. In some
cases, a general contractor requires proof
of coverage from a subcontractor.
Heres a look at a few examples of
real-life claims in which contractors were
denied coverage:
A contractor changed a door at a food
processing plant. The door was propped
up with a metal bar which fell and hit a
rusted pipe in the corner of the room. The
pipe contained ammonia, so the building
had to be evacuated. Nobody was inside
to shut off the cooking equipment. Con-
58 | Construction Executive January 2007
 Risk Management

sequently, the manufacturer suffered an

$80,000 loss of product and sued the
contractor because the mistake caused
the evacuation and the product loss. The
contractors general liability insurer denied
coverage, arguing that the pollution release
was the proximate cause of the lossnot
because it caused the product damage, but
because it caused the evacuation.
A contractor was digging at an excavation
site and unknowingly removed contami-
nated soil and deposited it on adjacent
property and caused an uninsured loss.
A mechanical contractor incorrectly
installed an HVAC system that produced
toxic mold and mildew.
A contractor etched the exterior of a
commercial building using muriatic
acid. Fumes entered the building. Peo-
ple became sick and chrome fixtures were
damaged.
A paving contractor laid down a coat of
asphalt for a parking lot, intending to
return the next day to finish. Overnight,
a rainstorm caused the coating to run off
into the storm drains.
The first rule is to recognize that an
exposure can occur regardless of a firms
specialization. Second, firms should
implement risk management programs to
mitigate the chance of a claim being filed.
Third, firms should use insurance to trans-
fer the risk if something goes wrong.
Finally, training keeps employees
aware of potential problems before a job
begins. Employees should look for asbes-
tos and know there will be a problem if
it is disturbed.
Remember, a general contractors pol-
lution liability policy excludes mold. For
mold coverage, an endorsement to the
policy that removes the exclusion must be
added for a premium.
The market for some insurance cov-
erages can be limited. Not all insurance
carriers that write general liability offer
broader pollution coverage. A firm may
need to shop the specialty insurance mar-
ket to get what it needs.
In the meantime, practice the funda-
mentals. Always be aware of risk and take
aggressive steps to mitigate potential loss.

Whitaker is executive vice president of Pasa-

dena, Calif.-based Bolton & Company, a part-
ner broker with Assurex Global. For more in-
formation, email jwhitaker@boltonco.com.

60 | Construction Executive January 2007

 Workforce De v e l opmen t
By Kim Kerr

Screen Before Hiring

E xecutives have dif-
ferent opinions on what makes
a construction organization suc-
cessful, ranging from innovative
services to competitive pricing.
But the most important factor in
the success of any organization is
the people who show up to work
every day. These employees not
only interact with key customers
and executives, but also serve as the
public face of the business.
Finding the right people to
employ can be one of the most
frustrating and costly elements
of running a successful business.
As the employment market con-
tinues to tighten, some employ-
ers may discontinue background
checks. Considering the expenses
associated with recruiting, hiring
and trainingtypically $7,000 to
$10,000 per candidateturnover is
a problem many organizations can-
not afford to ignore.
Employee turnover can be dras-
tically reduced if employers continue to use probation period puts a strain on profit Improved technology, such as online
proper screening methods at the beginning margins, and also could pose a threat to background screening, is increasingly
stages of the interview process. the overall reputation of the organization. used to help employers identify and weed
Company executives should realize that It is frightening to think one wrong hire out undesirable candidates. This tech-
some candidates exaggerate their back- could be so detrimental to a company, and nology offers faster and more affordable
grounds during the interview process. In even more alarming to know the situation background check capabilities because it
fact, according to the Wall Street Journal, could have been prevented by screening leverages data management technologies
34 percent of all job applications contain applicants prior to making an offer. and massive data repositories containing
lies regarding experience, education and the For years, employers have searched for a billions of existing public records.
ability to perform the essential functions of fast, inexpensive and reliable way to verify Todays online screening technologies
a job. A rsum may be only as good as the a candidates background and credentials not only help employers be more confident
paper on which it is written. during the interview processespecially with their hiring decisions, but also help
Additionally, the latest statistics released during times of explosive market growth, boost profitability and the organizations
by the U.S. Department of Commerce when multiple employees need to be hired image.
show internal employee-related thefts at once. In the past, businesses spent days
occur 15 times more often than external or weeks, and a great deal of money, to Kerr is vice president/general manager of
theft, and employee fraud costs companies determine a candidates past employ- the LexisNexis Risk and Information Ana-
more than $400 billion annually. Every ment and criminal history. But times have lytics Group. For more information, call
employee excused following the initial changed, and so has the process. (800) 590-8535.

62 | Construction Executive January 2007

 product
gallery
Multiquips Concrete Pump
Ideal for a variety of shotcrete and grout applications,
Multiquips C-30HDN high-performance pump is avail-
able with a 46-horsepower Nissan gas engine or a
39-horsepower Deutz diesel engine. The pump fea-
tures a new frame-integrated 18-gallon fuel tank and a
direct-flow hopper design. It also comes with a standard
2-inch ball hitch. At 2,831 pounds, 150 inches long and
62 inches high, the pump has a maximum rated volume
output of 25 cubic yards per hour. For more information,
call (800) 421-1244 or visit www.multiquip.com.

Ruwacs Little Red Vacuum

As Ruwacs most compact machine, the Little Red WNS 2220 vacuum
can be used for picking up both concrete chips and fine powders. The
vacuums oversized MicroClean filter is 99.9 percent efficient, allowing
large quantities of fine material to be collected without loss of suction,
and it is HEPA-ready for absolute filtration.
Capable of moving 200 cubic feet per minute, the machine can be
adapted for use with vacuum assist tools for point-of-source extraction
or general maintenance. It features a variety of
accessories, as well as a large drop-down
dustpan with a foot lever for easy, dust-free
waste removal. For more information, call
(413) 532-4030 or visit www.ruwac.com.

Valspars Flowfresh Concrete Flooring

The Flowfresh hygienic polyurethane concrete flooring system from
Valspar, Inc. offers chemical resistance for industrial sites and can
withstand the thermal shock produced from steam or high-temperature
cleaning routinely done in food, beverage and pharmaceutical process-
ing applications.
Flowfresh floors contain a continually regenerating antimicrobial
that inhibits the growth of mold, mildew, bacteria and fungi that can
degrade surfaces and threaten hygienic compliance. The antimicrobial
is dispersed throughout the entire thickness of the floor so additional
antimicrobial can be released as the floor wears down. Once the
antimicrobial kills the contaminant, it digests the decayed organisms
for further protection. For more information, call (800) 637-7793 or visit
www.valsparflooring.com.

64 | Construction Executive January 2007

 [C o n c r e t e Products ]
Omni Block Terex Pegsons Trakpactor
Masonry The Terex Pegson 428 Trakpactor is a track-mounted, fixed-hammer
Blocks horizontal impact crusher designed for crushing aggregates and con-
The newly patented crete/asphalt rubble. With a 42-inch by 28-inch feed opening, the plant
Omni Block system crushes up to 400 tons per hour with a 20-to-1 reduction ratio.
of masonry blocks The 39-inch-wide on-plant product conveyor features a troughed
combines the belt with fixed tail end and discharges at a height of 10 feet 9 inches.
strength, utility Two full-size and two half-size manganese blow bars are fitted as stan-
and versatility of dard, and the units 24-inch-wide side dirt conveyor folds hydraulically
concrete with in- for travel.
novative insulation Spray bars with atomizer nozzles mounted over the impactor
inserts. Used in discharge point and the conveyor head provide dust suppression, and
residential and all drives, flywheels, pulleys and couplings have wire mesh or sheet
commercial build- metal guards. For more information, call (502) 736-5200 or visit www.
ing, the blocks aim blpegson.com.
to lower utility bills
while increasing the
structural integrity
of the building.
With its mortar-
laid insulated block,
the Omni Block
system creates a
sealed external wall
system. It does not
require sheathing, vapor wrap, siding, furring strips,
additional insulation or drywall. Omni Block buildings
also are constructed with environmentally friendly
materials that resist fire, mold, pests, wind and noise.
For more information, call (866) 740-OMNI
or visit www.omniblock.com.

January 2007 Construction Executive | 65

 productgallery
LEVELROCKs Floor
Underlayment
The new LEVELROCK Corrugated Steel Deck
cement underlayment from the Industrial Products
Division of United States Gypsum Company uses a
gypsum-based concrete formulation to achieve high
compressive strengths. Designed for use in buildings
with light-gauge steel frame construction, it is the first
poured underlayment that can be applied over metal
framing systems or corrugated steel decks.
The underlayment is up to 55 percent lighter than 3-inch concrete.
And, with an average pour thickness of 1 inches, it can be applied at
much lower thicknesses than poured-in-place concrete. This allows more
floors to be added without requiring additional steel or reinforced con-
crete, and eliminates the need for higher-priced steel framing materials. Grasans Impact Crusher Plant
Unlike poured concrete, which can take up to 10 days to set, Grasans KRH1515 road-portable, horizontal shaft impact
LEVELROCK dries in two to three hours. For more information, call crusher plant can crush up to 600 tons of concrete/asphalt
(800) 487-4431 or visit www.levelrock.com. rubble or limestone per hour. The crusher inlet is 10 inches
higher than previous models, allowing for larger sizes of
concrete and asphalt rubble. A hydraulic moveable inlet
Seal-Kretes Commercial Grade Waterproofer base helps clear jamming and bridging.
The new Commercial Grade Waterproofer from Seal-Krete is a high-solid, siliconized acryl- To reduce users spare parts inventories, side liners
ic blend designed to protect and strengthen bare, porous concrete and masonry, such as in the crusher have been reduced from seven shapes to
split-face or fluted concrete block. With a tough, breathable film that will not yellow, the three standardized shapes, and all multi-blocks have been
waterproofer eliminates water intrusion, staining and freeze/thaw damage to concrete. made interchangeable. The feeder pan under the crusher
The emulsions small particle size allows deep penetration. And, because the discharges out the side for improved handling of wire mesh
mixture is siliconized, it doesnt just seal the surface, it hardens it by increasing the and rebar, and a bypass chute makes it easy to reject or
compressive strength of bare masonry. keep undersized material.
This product also features low VOCs and can be used as a paint additive to A skid-on, skid-off hopper and six independent hydrau-
improve water resistance and spread rate. For more information, call (800) 487-4431 lic support legs facilitate setup and teardownwithout a
or visit www.seal-krete.com. cranein about 30 minutes. For more information, call (419)
526-4440 or visit www.grasan.com.

66 | Construction Executive January 2007

 [C o n c r e t e Products ]
Dow Cornings Silane
Solution
Dow Cornings Z-2306 Silane can be used
to formulate water-repellent products that
protect concrete structures from water
absorption. When diluted with an appropriate
solvent and applied properly, the solution
penetrates and chemically reacts with the
cement substrate. Treating the substrate in
this way increases resistance to cracking and
helps retain its original appearance.
Silane is used to protect and seal com-
mercial buildings, highways, bridge structures,
parking decks and garages. For more
information, visit www.dowcorning.com/
construction.

Geoproducts Midwests Geotubes

Geotubesthe first plastic concrete form tubes for the construction industryare now
available from Geoproducts Midwest. Made of 100 percent recyclable plastic, Geotubes
can be reused for up to 100 castings. They are stackable to different lengths, come in
many different diameters and can be stored outside. They also are rigid, easing the installa-
tion and pouring of concrete. For more information, visit www.geoproductsmidwest.com.

January 2007 Construction Executive | 67

 productgallery [C o n c r e t e Products ]
Powers Fasteners Heli-Pin
The new Heli-Pin helical faade anchor from Powers Fasten-
ers, Inc. allows contractors to stabilize and make invisible
repairs to brick and masonry walls. The corrosion-resistant
stainless steel anchors can serve as reinforcement for cor-
roded or missing ties or can be embedded in the mortar
joints of new construction.
With a reinforced core for high shaft strength, the Heli-
Pin anchors come in a variety of lengths and diameters for
concrete, masonry, wood and steel applications. The anchor
is counter-sunk inch below the outer surfacewith no
exposed hardwareso only a fill and patch is required to
complete the invisible repair. For more information, visit
www.powers.com.

Grace Construction Products

Air and Vapor Barrier
The Perm-A-Barrier VP from Grace Construction Products is a fluid-
applied, acrylic air barrier membrane that provides continuous air tightness and
water protection in above-grade wall assemblies. Suitable for new and remedial
commercial and residential construction, it can be used in internal and external
corners, pipe penetrations and brick ties.
Perm-A-Barrier VP can be sprayed directly onto substrates, including damp-
to-touch concrete and masonry surfaces. The application requires minimal
surface preparation and eliminates the need for fastener holes, reducing the
likelihood of air and water penetration or tearing.
Once cured, Perm-A-Barrier VP forms a fully adhered, breathable membrane
that acts as a drainage plane while allowing water vapor to escape.It also
provides UV resistance and can be left exposed for up to six months before
cladding is applied. For more information, visit www.graceconstruction.com.

68 | Construction Executive January 2007

 around the
naton By Lauren Pinch

tion and the International Brotherhood of Connecticut

California
Court Decision Allows
Release of Craftworker
Addresses
The 9th U.S. Circuit Court of Appeals
recently affirmed a lower court ruling that
San Diego-based electrical contractor
Helix Electric, Inc. cannot block Sacra-
mento County, Calif., from releasing the
home addresses of Helix employees to a
labor-management committee (LMC)
backed by union groups.
In September 2005, Helix was work-
ing as a subcontractor on a juvenile hall
expansion project in Sacramento County.
The Public Works Compliance Program
(PWCP), an LMC established by the
National Electrical Contractors Associa-
Electrical Workers to monitor the payment
of prevailing wages on public construction
projects, subsequently requested copies of
Helixs certified payroll records, including
the addresses of Helix employees.
Under California state law, LMCs can
request payroll information and the home
addresses of employees on prevailing wage
projects.
Helix sent a letter to the county ques-
tioning the validity of PWCPs status as an
LMC and requesting that the county deny
PWCPs request for the payroll informa-
tion and addresses. The county responded
by informing Helix that it planned to
comply with PWCPs request and that a
court order was needed to block the release
of the employee information.
In November 2005, Helix obtained a
temporary restraining order and filed for a
preliminary injunction barring the county
from releasing the addresses.
The U.S. District Court for the Eastern
District of California ruled last February that
the potential for injury to Helix employees
was wholly speculative and the company
had not satisfied the burden of proof for
issuing a preliminary injunction. Addition-
ally, the court denied the companys claims
that PWCP is not a legitimate LMC and
that the program is not allowed to conduct
compliance monitoring activities.
Helix raised the same issues on appeal,
but the appellate court found the trial court
did not rely on an erroneous legal premise
or abuse its discretion in rejecting Helixs
request for a preliminary injunction.
New Education
Center Opens for
Craft Professionals
A ssociated Builders and Contrac-
tors (ABC) Connecticut Chapter has
launched the Construction Education
Center (CEC) in Rocky Hill, Conn., a
new nonprofit organization providing
apprenticeship and safety training, as well
as professional development courses, for
construction craft professionals and con-
tractors statewide.
The CEC curriculum is primarily
modeled after the curriculum developed
by the National Center for Construction
Education and Research. The curriculum
and the CEC apprenticeship training
program have both been approved by the
Connecticut Department of Educations
Vocational Division to ensure the center
provides relevant training for Connecti-
cuts registered apprentices.
All CEC courses are instructed by craft
professionals and/or professors of con-
struction management programs.
In addition, the center offers profes-
sional development courses addressing
such topics as plan reading, site layout,
site estimating, supervisory training, and
planning and scheduling. The center also
is approved by the state of Connecticut to
provide continuing education courses for
licensed plumbers and electricians.

Construction Executive Wants Your News!

If you would like to share company news of national interest,
send your information to:
Lauren Pinch, assistant editor
Construction Executive, 4250 North Fairfax Drive, 9th Floor,
Arlington, Va. 22203, or email, pinch@abc.org.

70 | Construction Executive January 2007

 Massachusetts
KUDOS
Former Union Leader
Convicted on Cianbro Earns Top Honors
From Vermont OSHA
Construction Firms
Reach Safety Milestones
Racketeering Charges
T B
Scott Boidi, former business manager for
he Vermont Department of Labors eating their previous record, Story
Occupational Safety and Health Adminis- Construction, Ames, Iowa, reached the
Laborers International Union of North tration recognized Cianbro Corporations milestone of 1.25 million hours worked
America (LIUNA) Local 88 in Boston, safety performance on the Missisquoi Bay without a lost-time accident.
was recently convicted of federal rack- Bridge project, the only construction site in In addition, Adolfson & Peterson,
eteering charges. the state to be designated for participation Minneapolis, reached two million con-
According to the U.S. Attorneys Office in the Green Mountain Voluntary Protec- secutive manhours worked with no lost-
for the District of Massachusetts, Boidi tion Program (GMVPP). It is only one of time accidents. During the 27 months it
who served as Local 88 business manager four sites in the state across all industries took to reach the safety milestone, the
from June 1991 through May 2002used to earn VPP-STAR status, the highest level firm completed more than $1.1 billion of
the union as an enterprise to engage in a that can be achieved in the program. work.
pattern of racketeering, which included The VPP recognizes companies According to the U.S. Bureau of Labor
stealing more than $25,000 in union assets, that have exemplary safety and health Statistics, the national yearly average for
mail fraud, and the possession and distribu- programs and demonstrate a superior lost-time accidents reveals that two out
tion of more than 500 grams of cocaine. management commitment to the safety of every 100 workers will receive an injury
The jury found Boidi guilty of one and health of their employees. that requires them to miss work.
count of racketeering, three counts of
embezzlement of union assets, one count
of conspiracy to possess with intent to dis- a firearm during and in relation to a drug- years on each of the three embezzlement
tribute cocaine and one count of use of a trafficking crime, and two counts of wit- charges; a mandatory minimum of five
communication facility in furtherance of ness tampering. years on the drug charge; and four years
a crime. The jury acquitted Boidi of three Boidi faces a maximum prison sentence for the use of a communication device in
remaining charges: one count of carrying of 20 years on the racketeering charge; five furtherance of a crime.

ADVERTISER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE ADVERTISER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAGE

About Time Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
www.abouttimetech.com 888-315-TIME (8463) fax: 801-465-0728
Accubid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
www.accubid.com 800-222-8243 fax: 905-761-1234
ACSTAR Insurance Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C4
www.ACSTARins.com 860-224-2000 fax: 860-229-1111
Acton Mobile Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
www.actonmobile.com 866-931-9319 fax: 410-931-3468
Allied North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19, 21
www.alliedna.com 800-431-2584
American Arbitration Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
www.ard.org 800-352-5675
Aon Construction Services Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C3
www.aon.com/construction 888-678-7310 fax: 213-689-5045
Blue Book of Building and Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
www.thebluebook.com 800-431-2584 fax: 914-245-0288
Brasfield & Gorrie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
www.brasfieldgorrie.com 205-328-4000
Calculated Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
www.calculated.com 775-885-4900 fax: 775-885-4949
CBIZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
www.cbiz.com 800-ASK-CBIZ (275-2249)
CLP Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
www.clp.com 800-CALL-CLP fax: 800-475-7925
CPS Security Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
www.cpssecurity.com 800-310-5535 fax: 310-878-8172
Crucible Safety Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
www.cruciblesafety.com 800-318-7652 fax: 720-870-3899
Dexter + Chaney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
www.dexterchaney.com 800-875-1400
HCSS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
www.hcss.com 800-883-6000 fax: 713-270-0185
InSite Software Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
www.insitesoftware.com 877-746-7483 fax: 585-359-9252
JOBPOWER Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
www.jobpow.com 800-776-6556 fax: 865-588-5379
Maxwell Systems, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
www.maxwellsystems.com 800-333-8435 fax: 610-277-2081
MC2 Management Computer Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
www.mc2-ice.com 800-225-5622 fax: 901-682-8118
McCormick Systems Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
www.mccormicksystems.com 480-831-8914 fax: 480-820-2422
Merchants Bonding Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
www.merchantsbonding.com 800-678-8171 fax: 515-243-0344
Meridian Systems, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
www.meridiansystems.com 800-850-2660 fax: 916-294-2001
National Center for Construction Education and Research (NCCER) . . . . . . . . . . . . . . . .25
www.nccer.org 888-NCCER20 (622-3720)
OnCenter Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
www.oncenter.com 866-827-6346 fax: 281-297-9001
OxBlue Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
www.oxblue.com 404-917-0200 fax: 404-917-0201
Procore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
www.procore.net 866-4-PROCORE (477-6267) fax: 866-281-2906
Ram Mounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
www.ram-mount.com 800-497-7479 fax: 916-294-2001
Rocktek International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
www.roctek.com 800-826-7763 fax: 954-739-8790

EarthCam, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 SkyTel / Fleet Hawk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

www.earthcam.net 800-EARTHCAM fax: 201-488-1119 www.oemdd.com 203-929-8431 fax: 203-929-3867
Everglades University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 St. Paul Travelers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
www.evergladesuniversity.edu 561-912-1211 fax: 561-912-1191 www.travelers.com
Exaktime, Inc.JobClock System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Textura LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
www.jobclock.com 888-788-8463 fax: 818-222-6148 www.texturallc.com 866-839-8872 fax: 847-582-1037
Foundation Software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 Tradesmen International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C21
www.foundationsoft.com 800-246-0800 fax: 330-220-1443 www.tradesmeninternational.com 800-573-0850 fax: 440-340-4092

January 2007 Construction ExEcutivE | 71

 Z ONA

community
RI

A
Y
UNIT

spotlight
COMM IGHT
P O T L
S

BY ADRIENNE FORD

Smiles That Go Round

DEAN WASHICHEK OF Centennial Con-
tractors Enterprises, Inc., Phoenix, his
wife, Beverly, and their sons Spencer and
Tyler really know how to get a smile from
kidsand adults, too.
Each year, they give away almost 400
bicycles to inner-city children who cant
afford bikes of their own and to adults
who use them for transportation to and
from work.
The Washichek family and their
neighbors work with a local Boy Scout
troop to gather and repair used bicycles
donated by community members for
redistribution.
The group selects an inner-city school
each year as the recipient. The school typi-
cally creates a contest for students to earn
the bikes, such as writing an essay about
the community, submitting a suggestion
on how to make the school better or hold-
ing a demonstration of math skills. Once donation. The team works several months gram for boys and young adults to build
the candidates are identified, the volun- to get the bicycles ready for delivery. character, learn responsibility, participate in
teer team tries to match the bikes with the Its a lot of work for the entire team, citizenship and develop personal fitness.
childrens ages and genders. but the smiles we get make it all worth Centennial is a member of the Virginia
Through the generosity of a few bicy- it, Washichek says. Besides, our children and the Arizona Builders Alliance chapters
cle shops and cash donations, the group are learning lessons in community partici- of Associated Builders and Contractors.
purchases the parts and supplies needed pation and teamwork. Its a great family
to put the bikes back into shape. In fact, activity. Ford is communications assistant for Asso-
each bicycle is put through an eight-point Incorporated in 1910, the Boy Scouts ciated Builders and Contractors and a con-
checkup before it is considered ready for of America provides an educational pro- tributing writer to Construction Executive.

Construction Executive Wants Your News!

If you would like to share company news of community service,
send your information to:
Adrienne Ford
Construction Executive, 4250 North Fairfax Drive, 9th Floor,
Arlington, Va. 22203, or email ford@abc.org.

72 | Construction EXECUTIVE January 2007