Europe’s past – A glimpse into our future.

On the recent Winter Workshop tour of Europe, as I craned my neck uncomfortably to better view the gothic arches of the St. Stephen’s Cathedral in Vienna. I began to wonder:

Was the project constructed on time?
Were there change orders?
Was the original critical path schedule modified to reflect the permit restrictions?
Was anyone injured or killed during construction?
Was there a project labor agreement?

I listened intently to our guide hoping to hear something to answer my questions. As you can imagine, the answers never came.

To be sure, we are experts in building thousands of miles of roads, millions of square feet of buildings, and countless homes. Our legacies for future generations like the cathedral will not be remembered for their process but rather by their results.

Currently the Mid America Bargaining Association (MARBA) is determining its long-range strategic plan. Much like the edifice of Vienna, we will not be remembered by the meticulous preparation and intense hours of negotiation time spent, but by the resulting wage adjustments. Our future young leaders are deserving of an environment that provides a sustainable labor force at competitive rates. Easier said than done.

Many thanks to Rick Grabowski our MARBA delegate for representing us well.

American Community Bank & Trust
1500 S. Route 31 (P.O. Box 970)
McHenry, IL 60050
Phone: (815) 385-5556
Fax: (815) 385-5557
www.amcombank.com
ASSOCIATE 
    Robert Hettermann, Vice President
Independent, privately held bank with a primary focus on providing commercial banking services and a full range of investment and financial planning services to privately held businesses.
    SPONSORED BY: Tiffany White, Berger Excavating

Bake’s Steel Erectors, Inc.
33243 N. Hwy. 45
Grayslake, IL 60030
Phone: (847) 223-0441
Fax: (847) 223-0495
www.bakessteel.com
CONTRACTOR 
    Lou Belletini, President
Ornamental and miscellaneous steel and metal buildings installation.
    SPONSORED BY: Gerry Dumalski, Boller Construction

Dreiling Construction Co.
26060 Cuba Road
Barrington, IL 60010
Phone: (847) 382-0152
Fax: (847) 382-9307
CONTRACTOR 
    Tom Dreiling, Owner
Carpentry.
    SPONSORED BY: Rick Grabowski, Pickus Construction

Flannery Fire Protection, Inc.
4810 52^nd Avenue
Kenosha, WI 53144
Phone: (262) 653-1517
Fax: (262) 653-1520
CONTRACTOR 
    Jerry Flannery, President
Fire protection.
    SPONSORED BY: Rick Grabowski, Pickus Construction

G.M. Sloan Mosaic & Tile Co.
101 Terrace Drive
Mundelein, IL 60060
Phone: (847) 949-1010
Fax: (847) 949-3939
CONTRACTOR 
    Al Lyne
Union contract flooring installation.
    SPONSORED BY: Rick Grabowski, Pickus Construction

Mt. Carmel Stabilization Group, Inc.
P.O. Box 458
Mt. Carmel, IL 62863
Phone: (618) 262-5118
Fax: (618) 263-4084
www.mtcsg.com
CONTRACTOR 
    Gregg Shaw, Chicago Area Manager
Soil stabilization.
    SPONSORED BY: Mike DeNinno, Lake County Grading

MGT Excavating
7800 Industrial Court
Spring Grove, IL 60081
Phone: (815) 675-3478
Fax: (815) 675-3420
www.mgtexcavating.com
CONTRACTOR 
    Lance Haas, Project Manager
Excavation, mass grading, landscaping, retaining walls, snow plowing.
    SPONSORED BY: Tony Riccardi, Wm. A. Randolph, Inc.

Several LCCA Members and local unions have graciously volunteered to be sponsors of the 2008 LCCA Golf Outing. Sponsors to date include:

Platinum Medallion Event Sponsor:
Osco Oil

Gold Beverage Cart Sponsor:
Maxim Construction Corp.

Silver “Closest to Pin” Sponsor:
MK Industries, Inc.

Bronze Hole/Evening Reception Sponsor:
Air Con Refrigeration & Heating
Aldridge Electric, Inc.
Becker Electrical Group
Burris Equipment Co.
I.B.E.W. Local 150
Meyer Material Co.
North Chicago Iron Works, Inc.
Sprinkler Fitters Union Local 281
Vulcan Materials Co.
Wellenstein & Sons, Inc.

If you are interested in becoming a Golf Outing Sponsor, contact Heidi Diederich at (847-623-2345 x3).

Chairman Mike Ryan, H.H. Holmes Testing Laboratories, reports the LCCA’s Annual Conference once again will be held with ASA of Chicago. The details:

Date: January 10-15, 2009
Location: Occidental Grand, Papagayo, Costa Rica
Cost:    $1,990 per person double occupancy (Roundtrip Air, All Inclusive)
           $1,350 per person double occupancy (Land only, ALL INCLUSIVE)
Air: Assistance with air transportation is available from Travel by Marcy. Call Marcy Gelber at (847) 597-5911 for more information.

The 5 Star Occidental Grand Papagayo inspires guests to both extremes of the activities spectrum. From down time in a poolside chaise lounge offering total relaxation to Adventuresome guests embrace the all-inclusive features this resort offers - many choices around two free-form pools, Fun Club and Fitness Center: aerobics; bird watching; daily recreational activities schedule; swimming; tennis; volleyball.

Beachside, guests discover the calm, warm bay waters are perfect for non-motorized water sports covered in the all-inclusive plan. The water sports office provides equipment to kayak and snorkel. And tall canopy trees along the base of the bluff mean ample natural shade for lounging and monkey and exotic bird watching.

This year’s trip to Cancun was a great success and we look forward to another exciting trip with ASA members. Meet new friends and renew old acquaintances this year in Costa Rica. Space is limited so make your plans soon. Book before September 1 and save $25 per person.

LCCA’s Annual Scramble Golf Outing will take the course at Midlane Golf Resort in Wadsworth, on Thursday, August 7, 2008! The field is filling quickly so make your reservations soon if you wish to participate.

Golf Outing Chair, Scott Nelson, H.H. Holmes Testing, explains, “The morning shotgun will start at 7:00 am and our afternoon shotgun will begin at 1:30 pm. This allows morning and afternoon golfers to share lunch from noon until 1:00 pm. Lunch will feature our program including door prize drawings and the drawing for the 50-50 Raffle. Golfers just need to decide whether they want to golf in the morning or the afternoon.”

Following the afternoon round, we will be offering a light dinner and sponsored drinks to those who want to hang around and talk about the awesome round of golf they just played. All golf prizes (low net, closest to the pin, etc.) will be announced at the evening reception.

Carpenters Pile Driving Subcommittee –
MARBA reports that as provided in a side letter to the new agreement, a Pile Driving Subcommittee will be established. The MARBA representatives will be: Daniel O’Neal, Hayward Baker; Donald Schultz, Herlihy Mid-Continent; and Michael Wysockey, Thatcher Foundations.

The management members met on May 19 to prepare for the meeting with the Union. Under the terms of the side agreement, there is a deadline of December 31, 2008. In the event that the parties do not reach an agreement, they will submit their last, best and final proposals to an Abritrator who shall select one proposal in its entirety. The arbitrator’s selection shall be final and binding.

Executive Order Signed Requiring All Federal Contractors to Use E-Verify –

Are you a contractor working on an Army Corps of Engineers, Naval, DOT or HUD project? If yes, you need to know that President George W. Bush recently signed an Executive Order requiring all federal government contractors to use E-Verify to confirm the employment authorization of new hires and persons assigned to perform work on future federal contracts. E-Verify is the Internet-based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration to electronically verify employment eligibility of newly hired employees.

The specific language of the amended Executive Order requires all federal agencies and departments that enter into contracts to require, as a condition of each contract, that the contractor agree to use an electronic employment eligibility verification system (E-Verify). This applies to (1) all persons hired during the contract term by the contractor to perform employment duties within the United States; and (2) all persons assigned by the contractor to perform work within the United States on federal contract.

Secretary Chertoff indicated the new system could be up and running later this year. Futhermore, he declined to commend on whether subcontractors will also be required to use E-Verify, but it is likely that such a requirement will be specified in the forthcoming regulations.

If you have questions about the amended Executive Order and/or its ramifications, please contact Marjorie Newman, Ogletree Deakins (312-558-1258).

The way the economy is today, you need to make sure you get paid for all materials used and work performed on a job.

LCCA has scheduled a Construction Mechanic’s Lien Seminar for Wednesday, July 23, 2008. The seminar will be held at LCCA in Waukegan from 3:00 to 5:00 pm. Tom Morris, Hinshaw & Culbertson will be covering the 2007 revisions to the lien law and what all is involved with filing a lien.

Don’t miss this important seminar. The cost is $20 per person for members and space is limited. Registration information is available on the LCCA website (www.lcca-il.org/events).

Unless you’ve been hiding under a rock for the last few years, everyone has felt the financial impact of the dramatic rise in fuel costs, more so for those companies with significant fleet sizes.

Following are five fleet fuel consumption improvement concepts, not necessarily in the order of importance (all financial result scenarios will use 20,000 miles as an average annual driving amount with $4.00/gallon as a gas price):

1)    Trade in that long-paid-for older unit for a new/late-model unit with better fuel efficiency. The difference between the older getting 12mpg vs. a new unit getting 17mpg can equal around $163/month in gas savings. Additionally, fleet vehicle procurement should be migrated to vehicles with more fuel-efficient cylinder sizes and transmission ratios.

2)    Time to clean house (or ‘clean vehicle’). How many of your units, especially service-related units, are carrying around tools, equipment and materials that are necessary for everyday activities? Extra weight translates into fewer mpg. A couple hundred pounds will roughly translate into an improvement of 1mpg. If the mpg went from 17mpg to 18mpg, that’s a $22/month gas savings.

3)    Tires, Point A. Monitoring tire pressure does make a difference. A 1mpg difference is not unheard of for under inflated vs. properly inflated tires. If the mpg went from 18mpg to 19mpg, that’s a $19/month savings.

4)    Tires, Point B. The rolling resistance of tires can impact +/- 1 or 2mpg. Generally, a tire with lower rolling resistance will likely not cost you any more than your current tire selection, but if it takes you from 19 to 20mpg, that’s a $18/month savings.

5)    MPH impacts mpg. Some companies have experimented with having governors installed across their fleets, while others randomly install vehicle performance monitors to determine who has a lead foot. It sounds like ‘big brother’, but ‘big dollar savings’ are involved with driving at moderate speeds. Sticking to 55mph vs. 63mph will burn less fuel, and will get you there at about the same time. Finally, avoidance of excessive idle time (0mpg at 0mph) can have a tremendous impact on controlling fuel consumption.

HNI Risk Services, Inc. is a full service commercial insurance agency, focusing on both construction as a practice niche and the total cost of risk of conducting business, not just your insurance costs. Brian Hollamon is the HNI contact for LCCA members and can be reached at bhollamon@hni.com or 800-236-4464, ext. 156.

LCCA Develops AIA Documents Task Force –
A task force has been established by members of LCCA representing many different facets of the construction industry. With the goal of:

• Educating our membership on the issue with AIA 312 Payment Bond form.
• Providing guidance to AIA leading to change

Here is a brief description of the issue.

AIA 312 PAYMENT BOND FORM ALERT!!!
Warning: Avoid using AIA 312 Payment Bond form
Why? Recent court decisions have led to diminished support of the AIA 312 Payment Bond form by many of the top sureties. These rulings have already had direct financial impacts on local Chicago area contractors. To combat these adverse court rulings, sureties require usage of:
(1) A modified AIA 312 Payment Bond;
(2) Alternate AIA 311 Payment Bond form; and
(3) In some cases sureties require usage of their own payment bond forms or may not even support the bid.
What? At issue are a couple clauses relating to: (1) 45-day notification provision; (2) Waiver of surety defenses; and (3) Notification by claimants has to be to the contractor and the surety.

DOES THIS IMPACT YOU??? It could if you routinely use AIA 312 forms or bid jobs using these forms. Sureties have had to pay on claims where little to no response was ever received from the Claimant. As a result, contractors have had to incur a PAID surety claim and then reimburse the surety based upon the amount paid to the Claimant. Corporate and then personal indemnity may be pierced.

Possible responses to the AIA 312 include usage of the AIA 311 or other bond forms. If a bond is required but not specified, it may make sense to use a form other that the AIA forms.

Look for more information in the August newsletter. If you have any questions or wish to learn more about these bond forms in the mean time, please feel free to call Gary Dowty at LCCA.