The Union Fight to Protect San Diego….from Iowa Farmers!!!
By Jim Ryan, Executive Vice President 

Ok….it has been a few weeks since Monday Morning Quarterback has focused on Tom Lemmon, the head of the San Diego Building and Construction Trades Council, Al Shur, the Business Manager for the International Brotherhood of Electrical Workers, and Jennifer Badgley, Al’s associate at the IBEW.  These three spend a great deal of time trying to convince public and private owners of construction projects that they should somehow limit participation on these projects to construction firms that are signatory to the unions they represent.

When the owners object, Tom, Al, and Jennifer react by threatening to do whatever they can to hold the project up by filing environmental objections to the project or by creating a campaign designed to turn the public against the owner by alleging that the owner will retain contractors that will not employ “local workers” on the project….the inference being that only contractors affiliated with these three employ local workers.  They accuse the owner of wanting to bring craft workers into San Diego from far away places like Iowa….or anywhere but San Diego County!!

Of course, some of our political leaders buy into all of this and side publicly with these three….I guess they are convinced that all of our projects in San Diego will eventually be built by farm hands unless owners listen to Tom, Al, and Jennifer!!! 

The real reason owners object to this pitch has nothing to do with Iowa farm boys building their projects…it has everything to do with understanding the construction market in San Diego and making sure their project is competitive.  I have talked with several owners….most have neither a union nor non-union bias.  They just want to make sure they will have some competition on the portion of their projects that they will bid to the construction market.  However, these owners are not building multi million dollar projects because they are naïve.  They look at the construction market in San Diego and reach some obvious conclusions.

So…..all of you union leaders that are loyal Monday Morning Quarterback readers please pay attention to the following…..and perhaps have a discussion about these facts during the next Tuesday morning Building Trades Council meeting.  I suspect this discussion will be far more productive than having Tom, Al, and Jennifer brief you on the crisis presented by all of those Iowa farm boys stealing your members jobs because owners won’t sign PLAs on their projects!!!!

Owners in this area are not convinced that a project built with an exclusion that eliminates or severely restricts non-signatory contractors will be competitive…..Why?

#1  The San Diego building construction market is “robust”.  There is a fairly strong private sector market…especially office and hospitality sectors.  NAVFAC has just announced a record construction program…over $1 billion this year alone.  In 2006, San Diego County passed several billion dollars of school bonds, and those projects will start hitting the street in 2008.  The Airport authority and the Port of San Diego have significant programs that will be awarded during the upcoming year.  GSA will award a $350 million dollar courthouse in 2008.  With all of this and more, the owners understand that subcontractors will be entering another busy period….this is not the time to restrict competition!

#2  When the owners review the Top 25 Commercial Building Contractor’s List which was published October 15, 2007 by the San Diego Business Journal, they find only 7 of the Top 25 General Contractors are signatory to union agreements….and of the seven some have only one or two agreements.  Even more troublesome….the seven are ranked #3, #4, #7, #15, #19, #21, and #22.

Now why is this important?  These owners suspect that if only 7 of the top 25 builders are signatory the rest of the market is following.  7 out of 25 is about 28%....would you want to expose your project to only 28% of the market?????

#3  In addition, in the April 30, 2007 San Diego Business Journal a list of the Top 45 commercial building projects that were underway at that point in time was published.  Only 18 out of the top 45 projects were being built by signatory contractors.  The top 45 represented $2.47 billion and the signatory total was $968 million.  This figure included a $250 million union project that was by far the largest project.  Without this project in the calculations, the total is 32% of the market.

Again, this does not give owners confidence that they will secure the competition necessary when they take their project to the market.

Tom, Al, and Jennifer… please do not try to use the  “well any firm can participate in a PLA” line.  With the strong market that exists why would subcontracting firms sign a labor agreement even for only one project?

Now….I know the three of you will ignore the facts….you have never let them get in the way of your logic before…..and keep up the fight protecting San Diego County from all of those Iowa farm boys!!!!

 

NAVFAC Report - Good News All Around This Time
By Brad Barnum, Vice President Government Relations 

Once again, there was a packed house at AGC’s Navy Liaison Committee last Tuesday, and once again there was good news from the Naval Facilities Engineering Command (NAVFAC), Southwest Division!  Over $1 billion per year over the next several fiscal years will be spent for military construction, Navy and Marine Corps work, defense military and BRAC construction, and special projects.  That is a lot of work!

There also was good news on the Bachelor Enlisted Quarters (BEQ) “front”, as it is was confirmed that NAVFAC had changed its acquisition strategy.  As you may remember, Navy Liaison Committee members were informed in April that in order to eliminate a nationwide deficiency of 20,000 beds, NAVFAC had proposed a $1.3 - 1.7 billion program to build 50-60 Bachelor Enlisted Quarters using only one contractor.  

NAVFAC’s proposal met quick resistance from AGC:  Would smaller local contractors be able to put up a $500 million bond? Would contractors, subcontractors, suppliers, and distributors be eliminated from participating?  Would there be less commitment to local and small disadvantaged business?  Would there be less use of local area trade workers?

A grassroots lobbying effort took place, which included a letter writing campaign to local Congressional Representatives, an AGC/NAVFAC agenda item during a May meeting of the Federal Contractors Conference in Washington, DC, and a meeting with NAVFAC Southwest Division leaders.  “Thank you”  to Navy Liaison Committee Chair Mark Penick, Navy Liaison Committee members, AGC San Diego and AGC California members, AGC of America’s Federal and Heavy Division, members of our local Congressional Delegation, and Doug Barnhart (AGC of America’s Senior Vice President).

The lobbying efforts paid off in early August, when we were informed that the Navy had reconsidered its position.  This was confirmed at Tuesday’s meeting by NAVFAC SW Division’s Captain Steve Wirsching:

·         45 total BEQs to be built between 2008 and 2012.  Approximate value of $1.5 billion.

·         31 of 45 to be built in SW Division (7 planned for award in 2008, 23 in 2009, and one in 2010)

·         11 separate packages to be solicited: Average size, $100 million; Maximum size, $175 million

·         25 BEQs at Camp Pendleton

·         4 BEQs at Twentynine Palms

·         1 BEQ at Barstow

·         1 BEQ at Yuma

Southwest Division has issued the first BEQ package at Camp Pendleton (approx $150 million), and RFP documents are available at www.esol.navfac.navy.mil. The contact is Michele Sanders at 619-532-3834 or at michele.sanders@navy.mil.

On behalf of AGC’s 1,340+ members, “thank you” Captain Wirsching and staff for working with the construction industry on this issue.  We appreciate the business you bring to the industry and the professional manner in which you administer the contracts.

 

AGC Tech Briefing…..Sold Out!!!!!

Well it is a sign of the times.  First of all, it wasn’t that long ago that a Committee named the Technology Trends in Construction Committee would not have been even a consideration in this or any other AGC Chapter.  Secondly…..it would have been unheard of to have a session called the Trends, Standards, and Best Practices in Construction Technology draw more than 5 attendees.  But times are changing and changing fast…..the Committee exists and is thriving and the seminar sold out to a standing room only crowd.

Last Wednesday, the Committee held the Tech Briefing in the AGC Building.  The event was moderated by Ed Wenz, Reno Contracting and the chair of this Committee.  The format involved a briefing from recognized experts in several different technology areas including:

Building Information Modeling (BIM) – Dennis Hall, Presidio Design Build
Digital Plan Distribution – Henry Purdy, iSqFt
On-Screen Takeoff – Greg Duyka, On Center Software
Estimating Systems – Nick Papadopoulos, Eos Group
Scheduling and Project Management – Ron Meler, RW Meler Consulting
Paperless Technology – Steve Jordan, EWA Software
Hardware Systems and Networking- Rob Slaughter, Filanc Construction

These topic areas will be followed up by one-day seminars in each area during the next several months.  The briefing was designed to give the participants some exposure to cutting edge Construction Technology and to give them an opportunity to pursue in detail a more in depth analysis of technologies they would consider for their firms.

Our thanks to Mandy Parent, Data Net Solutions, for chairing this event, and to the Committee members for all of the hard work that was required to make this event a success.

What is next???  Well, besides the seminars, each AGCSD member will soon be receiving an on-line survey that will help the committee to focus their efforts in the future.  Please take the time to complete this survey.

 

AGC Member Fire Relief Effort

Last week we published an article detailing the Washington Group International’s donation to the American Red Cross in San Diego for fire relief efforts.  We are confident that other AGC members also stepped up to help.  Please send a summary of your donation to jryan@agcsd.org and we will publish your efforts.  MMQB is distributed throughout the community, and we hope to be able to show the extent of the charity by our membership.    

 

Invest in Training your Project Managers
By Jim Ryan, Executive Vice President 

Last year, I wrote an article reprinted below, detailing why AGC members should train their current or future Project Managers. Our Education Committee asked me to write an another article, but the article below says it all.

However, before we go into the article, here are a couple of other considerations:

1. An October 15, 2007 article in the Engineering News Record (ENR) entitled, “Survey Finds Competent Managers in Short Supply.”  This was an article detailing a high-end survey of many of the top construction firms in the United States.  One quote from the CEO of a major firm makes the case for enhanced training.

“There is a lot of work in front of us, but we aren’t sure we can staff it with capable people.”

In other words, there are tremendous opportunities for the industry, but contractors may not be able to take advantage of these opportunities because their staff…..mainly Project Managers……..may not be up to it!

2. The second consideration comes from one of your San Diego competitors that has sent a number of Project Managers through AGC’s Project Management Course…………she said,

“The PM’s that have been through the course now “get it.”  They are “shoulder to shoulder” above those employees that have not completed the course.”

“Our firm sees the benefit everyday of having employees in the AGC San Diego Project Management Course.”

Attached is the 2006 article detailing the Project Management course.  The next course will be starting January 17, 2008

IF YOU WOULD LIKE TO SIGN UP TODAY FOR THE UPCOMING PROJECT MANAGEMENT CLASS: JANUARY 17, 2008 CLASS,

CLICK HERE FOR FLYER / CLICK HERE TO REGISTER  (Limited to the first 30 registrants.

 Details….contact Glen Schaffer at 858 731-8151 or gschaffer@agcsd.org. 

 

AGC Annual Meeting- December 13, 2007

Mark your Calendars.  All AGC members are invited to attend the December 13^th, 2007 Annual Meeting, which will be held at the Hilton San Diego Resort on Mission Bay, 1775 East Mission Bay Drive beginning at 11:00 am. 

A lunch will be served, followed by the election of new Board members and the Executive Vice President’s Annual Report to the membership, which will detail AGC activities and finances. Click here for registration.

For more information and cost, contact Rae Krushensky at 858-731-8157.

 

 

It’s Ski Season - AGC Winter Conference-
Save the Date- February 7-10, 2008
 

AGC 2008 Winter Conference 

In 2002, the AGC held its first Winter Conference at the Hyatt Regency, Lake Tahoe Resort.  After 4 years on the North Shore, your Meetings & Events committee has decided it was time for a change. 

Break away from the routine, and join us this year at The Canyons Resort, Silverado Lodge, in Park City, Utah!  Silverado, a luxurious retreat, masterfully designed for the most discriminating of tastes.  This Park City gem offers timeless elegance and quality amenities in a premium location near The Canyons Resort Village.

The Canyons is located on the world’s most breathtaking stage – Utah’s Wasatch Range and offers 3,700 ski-able acres spread over 8 mountains with 5 bowls, 6 natural half-pipes, 2 terrain parks and 152 trails.  Perhaps the best part about The Canyons is that it’s just 35 minutes from Salt Lake International Airport. 

Join us for this fun, networking opportunity.  There is a deadline to register. Click here for registration form and fax to Rae at (858) 558-8444.  You can also contact Rae with any questions at (858) 731-8157 or e-mail at raek@agcsd.org.

 

Please note: 
***** Please register on line for classes ******
Go to our website at www.agcsd.org and click onto Calendar for either
Construction Education Classes or Safety Training.

“AGC Education & Training….Building a Solid Foundation”

Safety Classes

NOVEMBER
CPR/First Aid- Nov 28 – Click here for flyer / Click here to register

DECEMBER
OSHA 10 Hour – Dec 3 Click here for flyer/ Click to register
Fall Protection – Dec 11 Click here for flyer/  Click to register

Construction Education Training Classes 

NOVEMBER
Project Mgmt Course-  Nov. 13
PowerPoint – Nov 20- Click here for flyer/ Click to register
AGC CLOSED- November 22 and 23 for Thanksgiving Holiday
Project Mgmt. Course – Nov 27
Blueprint 102- Nov 28- Click here to register

DECEMBER
WEBCM- Dec. 3
Effective Business Writing – 3 sessions – Dec. 4, 11, 18 Click here for flyer/ Click to register
Blue Print – Dec 5, Dec 12, Dec 18
HR Mini Conference – Dec 6 Click here for flyer
PowerPoint II – Dec 11 Click here for flyer/ Click to register
EM385- Dec 13 Click here for flyer/ Click to register
SWPPP- Dec 14 Click here for flyer/ Click to register

 

All committee meetings are held at AGC unless indicated otherwise

NOVEMBER
Nov. 20 – Human Resources Practices Meeting – 11 AM
Nov. 28 – County Liaison – 1:30 PM
Nov. 30 – Technology Trends in Construction – 7 AM 

DECEMBER
Dec. 5 – Safety Committee Meeting – 7 AM
Dec. 5 – City of San Diego Liaison Meeting – 1 PM
Dec. 6 – Government Relations Meeting – 10 AM
Dec. 11 – Education Training Meeting – 12 PM
Dec. 13 – Specialty Contractors Council Meeting – 11 AM

AGC Toastmasters- Every other Wednesday- 7 AM at the Roel Training Center. Click here

For more information, please contact the President of Toastmasters for AGC, Mandy Parent at mparent@4datanet.com

 

UPCOMING AGC EVENTS
December 1- Holiday Dinner Dance- Hotel del Coronado
December 13- Annual Meeting- Hilton Mission Bay- Click here for registration form
 

2008 AGC Events
January 29- Installation Dinner- La Jolla Hyatt
February 7-10- Winter Conference- The Canyons Resort- Utah- Click here for registration form
Spring Conference in Cabo San Lucas, Mexico – April 17-20, 2008 –click here for brochure