The California Department of Industrial Relations Issues Coverage Decision Concerning Hauling Material onto Construction Sites

John M. Rae, the Acting Director of DIR, has issued some rulings concerning what work is and what work is not covered by California Prevailing Wage law when hauling material onto a construction site.  The industry has been waiting for this decision for a long time.

The decision came as part of an administrative appeal ruling that was part of an appeal of a previous determination concerning coverage on bridge projects in San Francisco and in San Diego.  A number of employer associations, including AGC issued briefs in the appeal process.  A number of union organizations also issued briefs.

There has been a growing movement to attempt to include as covered by prevailing wage anyone that hauls anything to a construction site.  This decision does not accept that concept.  The decision states that DIR considers on haul work covered work only when the driver is performing an integral part of the construction work. “…the mere delivery to a public works of material that is rehandled or incorporated by on-site workers, or the haulers’ incidental placement on the public works site of the materials hauled is not covered work.

On haul work is covered if the hauler does incorporate work in a direct, immediate, and more than de minimis manner.  The example used…..when ready mix drivers delivered concrete to a construction site and placed the concrete into pumps and workers on the site completed the tasks associated with the pour…..the work is not covered……when the concrete hauler or driver drove a self contained concrete mixer which prepared rapid hardening concrete on site and worked directly with the onsite contractor’s employees to place the concrete onto the highway it was covered work….the difference….how much work the hauler/driver did on site.

So…..a driver delivering lumber or other materials is probably not covered…..they are only covered if they work in a substantial way performing tasks on the project.

The other part of the decision that is relevant to our industry has to do with hauling from dedicated sites to a project.  In general, if hauler/trucker is hauling from a site that has been established exclusively to provide material for the project, then the hauler/trucker is due prevailing wages. However, there seems to be some concern that if the site is not adjacent to the project, then the coverage may not apply. So the Director is being a little vague on this point…our best advice …..if the material that is being hauled to the site  is purchased from a supplier that is also selling material to others for other projects…then prevailing wage does not apply, assuming the trucker is not directly involved in incorporating the material into the project in more than a de minimis way.        

County Board of Supervisors “Punt”, While SANDAG Votes to Support State Infrastructure Bond Measures

By Brad Barnum, Vice President Government Relations

In the course of two days, two local decision making bodies took a completely different path on an issue very important to the construction industry: infrastructure investment.

On Wednesday, August 2, the San Diego County Board of Supervisors voted unanimously to support State Proposition 1A (protection of the state sales tax on gasoline to transportation projects), but they “punted” on a decision to support the $37 billion statewide infrastructure bond package (Props 1B-1E).  Concerns about bonds in general and with the state’s ability to bond played a huge role as the five conservative Board Members voted to take no action.

 

On Friday, August 4, the San Diego Association of Governments (SANDAG) voted 18-0 (with Supervisor Horn abstaining on San Diego County’s vote) to support Props 1A-1E.  Clearly seeing the importance of investing in infrastructure, 18 of the Board Members believe that the bond package is consistent with SANDAG’s Regional Comprehensive Plan, which recognizes the interdependence of different quality of life factors, including transportation, housing, the environment, education, and the economy.

 

The decisions from these two bodies shouldn’t be a surprise, especially if you remember what happened in 2004.  It was SANDAG that had the foresight to put the local Transnet Sales Tax Extension (Prop. A) on the November ballot, but it was the Board of Supervisors who opposed it!  Voters rejected the Board’s claim that the funds would not be effectively used to reduce traffic congestion, and overwhelmingly supported a balanced approach to highways, local streets and roads, and transit improvements.  Over 66.7% of San Diego voters supported Prop. A, which will generate $50 billion over the next 40 years for transportation projects.  A quick look up the I-15 corridor will give you an example of what some of the early Prop. A funds are accomplishing!

 

We applaud SANDAG for stepping up to the plate and supporting the infrastructure bond measures early.  Infrastructure investment should be a high priority for our elected officials, and we will encourage other public agencies to follow SANDAG’s leadership.  However, we once again are disappointed by the actions of our County leaders…the Board of Supervisors opposed Transnet, supported a development fee in 2005 that limits construction, and didn’t take a position on the infrastructure bond measures that will help rebuild California and San Diego.

 

Rest assured, AGC will continue to press our case to elected officials and public agencies that infrastructure investment needs to be a higher priority.  Fortunately, one look at the local infrastructure bond measures on the November ballot will tell you that some elected officials do see the importance of investing in infrastructure…the City of Vista and five local school districts…that is why they voted to have the measures on the ballot!.  We high-lighted the measures in last week’s Monday Morning Quarterback, and we will do so again and again and again.

Legislature Enters Home Stretch

By Dave Ackerman, AGC’s Legislative Advocate

With two weeks left in the 2006 Legislative Year, we can finally see the light at the end of the tunnel – we just don’t yet know if that is a train coming at us!

Last week was decision time for legislative leadership on which bills to “kill” for the year and which ones to allow to move further in the process.  Many bills met a “silent death” as they were sent to the suspense file in the Senate and Assembly Appropriations Committees without even as much as a vote on the bills.

Most dramatic was the decision to shelve legislation to provide driver’s licenses to undocumented aliens, after the Governor made it clear he would veto the bill as soon as it hit his desk for consideration.  Also killed was legislation to place a reapportionment measure on the November ballot, though an attempt can still be made for the 2008 ballot.

On issues more related to construction, legislation that would have given Caltrans unlimited authority to use design-sequencing procurement authority for highway projects was held in committee.  This measure was being sponsored by the Professional Engineers in California Government as an alternative to design-build, but it contained several prequalification requirements that had been inserted by the California Building Trades.  AGC opposed this legislation during committee hearings due to the prequalification provisions and the fact existing law already allows Caltrans to use design-sequencing for several new projects.  AGC felt that we needed to gain experience from those projects prior to giving Caltrans unlimited authority.

Earlier in the year, several other bills were sidetracked due to AGC’s opposition.  Those bills included SB 1581 (Dunn), which would have prohibited Type I indemnity clauses between general contractors and subcontractors involving commercial construction contracts, and legislation that would have negatively impacted general contractors relating to payment of retention and progress payments with their subcontractors.

Several major issues for AGC and the construction industry are very much alive as we enter the last two weeks of the legislative session.  Here are some of those issues:

Prequalification Requirements. AB 2992 (Evans), opposed by AGC, would require the California State University System to establish a registry of pre-qualified mechanical contractors from which a prime contractor would have to take bids for that specific work for CSU.  AGC opposed the bill on the basis of mandating specific controls on the general contractor without regard to the cost or administrative problems created by the bill.  The CSU system is also opposed.  The bill is being sponsored by the Electrical Workers Union and Pipe Trades Union.

Design-Build. AB 143 (Nunez) – was part of the infrastructure bond package and would authorize Caltrans and local transportation entities to select a limited number of projects to procure through the design-build process.  This bill failed on its first vote and may be reconsidered by the Assembly before adjournment.

Underground Construction. SB 1359 (Torlakson), supported by AGC, would enhance the current requirements for utilities to properly locate underground facilities to protect contractors prior to commencing excavations.

Indian Burial Sites. AB 2641 (Coto), opposed by AGC, would establish a process to protect and mitigate Native American burial and artifact sites from development and/or construction impacts.  The process currently in the bill could be used to delay or stop many construction projects.  AGC is working with a broad coalition of groups to seek amendments to this legislation.

Meal & Rest Periods. AB 2593 (Keene), opposed by AGC, unless amended, would establish flexibility for meal and rest period for certain unionized segments of the transportation industry.  The bill is designed to assist United Parcel.  AGC is seeking amendments to clarify that this bill would not prohibit other industries from gaining similar benefits.

Apprenticeship Programs. AB 2929 (Laird), would revise the procedures for auditing new or expanding apprenticeship programs. AGC is working with the Governor’s Office concerning amendments to minimize or remove any negative impact on AGC’s apprenticeship programs.

Greenhouse Gas. AB 32 (Nunez), would establish reporting and accountability procedures for greenhouse gas emissions. This bill is opposed by a large coalition of business and industry groups, including AGC.  The Governor has indicated he will probably sign the bill when it reaches his desk.

Silica Dust Exposure. SB 46 (Alarcon) legislatively establishes safety and health requirements regarding dry cutting and dry grinding of masonry materials.  AGC supports the intent of SB 46 to eliminate worker exposure to silica dust but opposes SB 46 because AGC feels that worker safety and exposure limits fall under the jurisdiction of the Cal OSHA regulatory process and that regulatory activity should not be done through the legislative process.  In addition, the regulatory process is already underway and should not be preempted by the Legislature.

The Legislature, by law, must adjourn for the year on August 31^st. The Governor then has 30 days, until September 31^st, to sign or veto the hundreds of bills that have been sent to him by the Legislature.

A complete year-end legislative summary will be made available to AGC members following the Governor’s actions on legislation this year.

Project Managers…..the Industry Needs To Meet Their Training Needs!!!!

By Jim Ryan AGC Executive Vice President

I have always been amazed at the talents of our industry’s Project Managers.  These individuals are required to be…usually at a fairly young age…..engineers that understand the details of how to build complicated projects….construction estimators that have the ability to quickly put together and make sense of the cost implications of  a customer’s vague notion of a building or a structure…….a sophisticated business expert that is expected to start up and successfully run a multi million dollar business (a project) in an extraordinarily short time frame….a marketing expert that has the ability to develop long term relationships and to recognize opportunities when they appear…..a legal expert….a scheduling expert….an accounting expert…….The list goes on and on.

Our industry recruits these multitalented individuals from construction engineering programs at major universities and sometimes from business schools. We typically start them out as project engineers….by giving them a desk and a computer…assigning them to a few projects and telling them to get to work.  They are immediately required to somehow translate the theory they learned at the University into becoming productive members of the contractor’s team.  No real training is involved…the survivors figure out what needs to be done and somehow make it through.

The most promising of these individuals are then promoted to become project managers…..usually about 5 years before they have the necessary experience to handle the responsibility they are to assume.  Again, they are given no real training.  They are expected to immediately transfer from the technical side of construction to become the multi-talented individual we described earlier in this article. Most were educated as engineers…..the problem is that a project manager probably needs more business, management, and people skills than they need engineering skills.

So our industry has a problem….we are putting good people that have some of the best work ethics in the business world into positions that they really are not ready for…..and this often results in a project bottom line that does not produce the positive results that were expected.

AGC-SD’s Construction Education and Training Committee and AGC-SD staff have developed the AGC-SD Project Management Certificate Course.  Currently, we have 32 individuals enrolled in this 26 week course designed to transition quickly these bright, up and coming project engineers and project managers from the technical phase of their career to the management phase of their career.

We are doing this by utilizing Mr. Paul Stout of Power Summit…an educational consulting firm that has a construction focus…Paul was a senior project manager in his past life….and bringing in on a weekly basis some of San Diego’s most talented individuals to teach the critical components of construction project management. 

Now remember…..Paul Stout is there for every course to make sure the lesson is learned.  Those successfully completing the course will be the guests of the AGC during the Installation Dinner in January 2007, and they will receive their certificates in front of the 400 individuals that attend.

Yes, it is expensive….but most untrained project managers could loose more than that in a day on a project by making the wrong decisions.

What a concept….training PMs over 26 weeks instead of letting them figure it out for themselves over a number of years.  My advice….enroll a PM now for the next program.

Details….contact Glen Schaffer at 858 558 7444 x 15 or gschaffer@agcsd.org. 

Sign Up Today for the September 7, 2006 Class …………… Please send in a registration or go on line www.agcsd.org and click on the link to education to register

Welcome New Members

The AGC Board of Directors and the AGC Staff would like to welcome the following new members to the Association.

Company	Type of Work	Contact	Phone	email
D & M Shelley’s Inc., dba D & M Welding	Steel	Mary Shelley	619.460.1710	shelweld@aol.com
JPI Development Group, Inc.	General Construction	Lillian Hughes	760.728.8906	Lillian@jpipipe.com
KPS Insurance Services, Inc.	Bond Broker	Michael Strahan	858.538.8822	mstrahan@kpsinsuranceservices.com
Pacific Coast Teleco	Communications	Steve Seligmann	619.280.1222	steve@pacificcoastteleco.com
Richard Brady & Associates	Engineering & Design Build Firm	Ellen Baumgarten	858.496.0500	ebaumgarten@rbrady.net
Trench Plate Rental Co.	Equipment sales, safety equip., shoring & traffic control	Howard Inscho	760.746.8564	himscho@tprco.com
Warmboard, Inc.	Radiant heat	John Trauger	831.685.9276	Nicole@warmboard.com

Continuing Education Seminars for Human Resource Personnel:

The second seminar in a series of three, regarding continuing education for Human Resource Personnel is scheduled for September 22.  The topics for this session will deal with “Exempt vs. Non-Exempt” and “O.T. Laws and Practices”.

Please note that the class will be held at the newly remodeled AGC building located at 6212 Ferris Square, San Diego, 92121.

If you have any questions, please contact Rae Krushensky at raek@agcsd.org or (858) 558-7444, ext. 11.

AGC San Diego Chapter and AGC of California  present “Desert Impressions”- Fall Conference-  Oct. 11-14 at the Hyatt Grand Champions- Indian Wells

The AGC of San Diego Chapter and the AGC of California have joined forces to bring the entire statewide AGC membership together for the AGC’s Desert Impressions Fall Conference.  The Conference will be held at the beautiful Hyatt Grand Champions Resort in Indian Wells beginning October 11, 2006 and concluding Saturday morning Oct. 14^th.  It is expected that over 500 AGC members from throughout California will attend.

Members of the Meetings & Events Committees of both chapters have been planning the event for several months.  The AGC Fall Conference offers a number of high profile seminars and educational sessions, opportunities to network with other AGC members from throughout the state, and time to enjoy a variety of social events.  In addition, California’s political leaders that are interested in making sure our state invests on our infrastructure are expected to attend. 

All AGC members are invited to attend the AGC’s Desert Impression’s Fall Conference. Join over 500 of your peers from throughout the state for education, politics, networking, and fun! 

Make your plans now to attend the Fall Conference Oct 11-14th

 “iSqft Randy’s” iSqFt Tip of the Week & Obscure factoid

iSqFt Tip of the Week

With the AGC/iSqFt Internet Plan Room, you can view plans and specs online.  This saves you the time and expense of driving to physical plan rooms, giving you the ability to respond to more opportunities.

 

Obscure Factoid:

 Big Ben is not a clock, but the thirteen-ton bell inside the clock tower of England's House of Parliament.

 

 

AGC Annual Softball Tournament- September 16^th

 

The AGC Annual Softball Tournament is scheduled for Saturday, September 16^th.  Please  contact Rae Krushensky at 858.558.7444, ext. 22

 

SUPERVISORY TRAINING PROGRAM - STP

Supervisory skill--or the lack of it--directly affects every company's bottom line. Each day, decisions made by every foreman and superintendent are crucial to the success or failure of every construction project. You make your money in the field, and STP can help you improve your organization’s bottom line.

STP

Supervisory Training Program developed by AGC National, is a turnkey training curriculum that is easy to host and designed specifically to meet the needs of the construction industry. Developed, updated, and field-tested by and for contractors, the Program is 10 comprehensive courses (plus two overview units) that focus on the knowledge and skills that every supervisor must have to be an effective manager of people, time, equipment and materials

Each of the 10 STP courses is 20 to 25 hours of intensive training.

The Next Unit for Instruction is Unit 5 – Planning and Scheduling which starts August 31, 2006

This course includes the following Sessions:

1.       Introduction to Planning & Scheduling

2.       Preparing the Project Plan

3.       Communicating the Plan

4.       The Critical Path

5.       Computer Scheduling I & II

6.       Using the Schedule on the Jobsite

7.       Updating the Construction Schedule

8.       The Schedule as Documentation

9.       Using Planning and Scheduling

Register on AGC San Diego’s website www.agcsd.org or contact Glen Schaffer at gschaffer@agcsd.org.

 

AUGUST CLASSES

 

August 30 – CPR/First Aid – 8 AM – at National University – 9388 Lightwave Avenue, San Diego, CA 92123- North of Aero Drive and Ruffin Rd.

August 31- Supervisory Training Program Unit 5- Session 1,” Introduction to Planning & Scheduling” - 7:30 AM – at AGC

 

SEPTEMBER CLASSES

 

September 7 – Supervisory Training Program Unit 5 – Session 2 “Preparing the Project Plan” – 7:30 AM – at AGC

September 7 – Construction Project Management, “10 Goals and Team Building” - 3:00 PM – at AGC

September 8 – Scaffolding CPT & Hazard Awareness – 6:45 AM at AGC

September 14 – Supervisory Training Unit 5 – Session 3 “Communicating the Plan” – 7:30 AM at AGC

September 15 – OSHA 10 Hour – 7:00 AM at AGC

September 21 –- Supervisory Training Unit 5 – Session 4 “The Critical Path” – 7:30 AM at AGC

September 21 –Construction Project Management, “PM Template” 3:00 PM at AGC

September 27 – CPR/First Aid – 8 AM at AGC

September 29 – Advanced SWPPP Training- 7:30 AM at AGC

 

AUGUST MEETINGS

 

August 22 – HR Committee Meeting 11:00 AM– Location: Cavignac & Associates- 450 B Street, Suite 1900, San Diego 92101

August 23 – AGC Toastmasters @ Roel- 7AM

 

SEPTEMBER MEETINGS – All meetings will be held at AGC unless otherwise indicated

 

September 7 – Joint General Building/Engineer Contractors Council Meeting – 12:00 PM

September 11 – City of San Diego Liaison Meeting – 1:00 PM (rescheduled from Sept. 6^th)

September 13 – Government Relations Committee Meeting – 10 AM

September 19 – Education Committee Meeting – 12:00 PM

September 20 – Public Building Liaison Meeting – 7:00 AM

September 20 – AGC Toastmasters @ Roel- 7AM

September 21– Specialty Contractors Council @ Adam’s Steakhouse – 7AM

 

Save The Dates:

 

September 16 – AGC Softball Tournament

September 23 – Aztec Football Tailgate and SkyShow

October 11-14^th – Joint Fall Conference with AGC of California in Palm Springs – details on website