In 1975, I was working for a small utility contractor. At the National Utility Contractors Association convention that year, during a hospitality suite discussion on the ills of the industry, I was challenged by their executive director to find a way to solve the problems, rather than just complaining about them. The result - thirty-two years ago this month I showed up for an interview at a contractors association and tried to meet his challenge. This month I will say good-bye to a career I had no idea even existed then. I will leave LCCA with a profound appreciation for the opportunity you offered me and for the great people I have had the privilege to work with over the years.

I recently gave a speech on what I do for a living. There’s really no short answer. I solve problems and help members avoid the pitfalls of construction. In addition, I have had to learn how to plan all kinds of meetings, write newsletters (something my English teacher wife Sandy thought was impossible for a math major) and a whole lot more. In fact, it seems that every year we must learn new skills just to keep up with the membership and keep the association exciting.

So what have 32 years in construction association management taught me?

• Email is better than fax – and fax is better than snail mail – and something else will be better in a few years.
• The paperless office is a fiction – and always will be.
• Computers create as many problems as they solve – but do it at nano speed.
• There will always be a place for the shovel in construction.
• Win – win negotiations work everywhere except in labor negotiations.
• If the government can screw something up, they will – but with “compassion”.
• Subcontractors will never get paid fast enough.
• If it works for you, the attorneys do not like it.
• The 10 pages in the 300 page spec you do not read will contain the conditions that will cost you money.

From an association perspective, staying ahead of the members is the biggest challenge. For example in the late 80’s I suggested to my Board that the association should consider getting a fax machine. I was told the fax would never catch on but they agreed to have me keep a record of every fax we could have sent for six months – before they would approve the $350 expenditure! They were right. The fax is now almost obsolete!

But the construction industry is also the most fascinating and rewarding industry anybody could be associated with.

• It is an industry that cannot be exported
• Civilization cannot grow without construction
• It is the backbone of the economy
• Construction can be as much art as necessity
• And you can see the results of your work immediately

The future for LCCA is bright. Your leaders are committed and I think that Tim Penno will not only carry on the programs of the past but also lead you into a 21^st century that will be much different from the last century. Currently we are experiencing a downturn in the industry. This is not the first or the last. You and the association will be stronger for the challenge. I know I am. Keep the faith and I wish you all the best in the future. Good night Lyle, good night Tim and good night from LCCA News!

Several LCCA Members have generously signed up to be Entertainment and Beverage Sponsors of the November 7, 2008 Annual Awards Extravaganza. Sponsors to date include:

Burris Equipment Co.                         HNI Risk Services, Inc.
Camosy, Inc.                                       R J Underground
Hard Rock Concrete Cutters            Waukegan Roofing Co.

If you are interested in becoming an Annual Awards Extravaganza Sponsor, contact Heidi Diederich (847-623-2345 x3).

You have spoken and the Members of the Year have been selected. The ultimate honor is to be selected by your peers as the best company to work for or with and our Members of the Year are the best of the best. Every LCCA member has the opportunity to vote for a member in each of the categories of membership EXCEPT their own. Here are the results:

General/Prime Contractor – Boller Construction Co.
Subcontractor – Continental Electric
Supplier – Gatwood Crane Rental
Associate – Dan, Snell & Taveirne

This year 112 LCCA members received a vote and the final results were very close. We will be recognizing the winners at the Annual Meeting November 7. Thanks to all who voted. Your vote does count at LCCA!

The APEX, or Award for Project EXcellence, is presented to a LCCA member project that was completed in the last year. Projects were judged on: Quality of construction, Design/Engineering, Impact on the community, Cooperation among parties, and Safety record. This year we are pleased to award the APEX to Stucky Construction Co. for the Volo Village Hall House project. The Village of Volo, and Daniel Robison Architects collaborated with Stuckey Construction and several other LCCA members to create a Village Hall that exceeded everybody’s expectations.

The project features a two-story 9,000 square foot building entirely stick framed with the exterior constructed of cement board siding and brick – a true master carpentry project. The interior is detailed with traditional construction features such as wood panel doors, oak trim, chair rail and wood base molding. Stuckey Construction performed all rough and finish carpentry and exterior stained/stamped concrete entrances.

In addition, we will recognize the Runner Up projects including:

Berger Excavating – Butterfield Road Reconstruction
Boller Construction – Bowen Park Children’s Playground
Camosy Construction – Lake County Branch Court
Camosy Construction – North Point Marina
Manusos General Contractors – Richmond Waste Water Treatment Plant
Midwest Masonry, Inc. – Jesse Brown VA Medical Center

Judging the contest this year was: Rob Twardock, College of Lake County; Dave Young, Lake County Partners and Lynn Karner, Plumbers Local 93.

LCCA Winter Workshop Chair, Allan Pickus, has announced that the proposed 2009 Winter Workshop to Guatemala has been cancelled. “Unfortunately, the time was just not right for this trip.” The committee will be meeting next year to look at more exciting destinations and hopefully the economy will be a little more settled and the cost to travel more affordable. Currently the weak dollar and the cost of fuel have combined to dramatically increase the cost. Oil is already falling and hopefully the dollar will get stronger as we recover from the current economic downturn.

Thanksgiving Holiday Pay Differs - As we approach another holiday, it is important to know just what your labor agreements require for payments of wages and fringes during the holiday season. All agreements recognize Thursday, November 27, 2008, as the official holiday and require double time if you work the day.

The Friday after Thanksgiving can be an issue. Most contracts consider this a “straight time day”, but some, like the Elevator Constructors and Teamsters Ready-Mix Concrete agreement consider the day a holiday. Some agreements also require Holiday Pay for certain employees.

New Pile Driving Rules – During the last negotiations with Carpenters, a special Task Force was created to come up with new rules for Pile Driving. An agreement has been reached and several new rules will go into effect when the union ratifies the changes. Major changes include:

• 22.2 – Size of crew reduced from 4 to 3. Two man crews limited to piling work by certain smaller equipment.
• 22.4 – The crew size when loading or unloading piling is now “as necessary” rather than “as determined by type of operation.”
• 22.8 – This article is deleted.
• 22.15 – Carpenter is now required to provide much more equipment including 25’ tape, channel locks, speed square, 2’ framing square, side cutters, end cutters and bolt bag. They are also required to provide their own safety toed boots if required and the employer will reimburse 50% of the boots cost.
• 22.16 – Employer shall provide all safety equipment.

LCCA Member Mike Wysockey, Thatcher Engineering, served with Dan O’Neal, Hayward Baker, and Don Schultz, Herlihy Mid-Continent, on the task force that negotiated. We appreciate their effort. For a copy of the new provisions, call the LCCA Office.

Libby New Carpenters President – Frank Libby has been elected to serve as the 24^th President of the Chicago Regional Council of Carpenters succeeding Marty Umlauf who has retired.

Mr. Libby is a second generation carpenter who has been a member of the union since 1976. He has served in several capacities most recently as Second Vice President.

Mr. Umlauf ends nearly four decades of service to the union. Joining the union in 1969, he was first elected Business Representative of Local 54 in 1978. He held many offices over the years most recently succeeding Earl Oliver as President in 2004.

We look forward to working with Mr. Libby and his staff in the future.

If my company has been hired to remodel a multi-level building and we are allowed to share use of the freight elevator with the existing business onsite, do I need to employ a worker to operate the elevator?

Maybe -- According to the Operating Engineers Building Agreement, Article VI, Section 14, Paragraph 4:

“An operating engineer shall be employed on automatic elevators on rehab and/or tenant build out work if such work exceeds 30,000 square feet….This Section shall apply to elevators used to transport construction materials, supplies and equipment. Nothing in this Section shall prevent craft employees carrying hand tools from using other elevator service at the site or project.”

Contractors only need to employ a Class IV operator when transporting construction materials, supplies or equipment on projects larger than 30,000 square feet (Class III operators on projects larger than 50,000 square feet). That clause cannot be avoided.

But here’s a tip – There is no need to employ an operator for the duration of the project. You can minimize your costs by moving ALL materials and equipment to the appropriate floor on the same day (or on as few days as possible). And you don’t need an operator to transport craft employees carrying hand tools.

Construction Referendums – This year several referenda will provide hope for construction spending. Here are the ones to watch:

Village of Wauconda - $7,000,000 in bonds to fund street and storm sewer projects.

Barrington - $34,300,000 in Library Bonds to construct an addition to the current facility.

Warren School District #121 - $30,000,000 in bonds for additions, renovation and repair to existing facilities.

Community College District #512 - $153,600,000 in bonds to build additions and renovate/repair existing buildings at Harper Community College.

Other Referenda – There are a couple of Referenda that will be of interest to all Lake County residents.

Forest Preserve Bonds – The Lake County Forest Preserve is proposing to issue $185,000,000 in bonds that could be used for a variety of issues including purchasing more “open space” land. More land purchases will continue to artificially inflate land prices in Lake County since they compete with developers and others looking for land to use for commercial, industrial and residential purposes. At the same time the land comes off the tax rolls putting more pressure on all Lake County taxpayers to pick up the difference. And the bonds must be paid back and current tax revenue will probably not be enough so they will need to raise their tax on your property tax bill to make up the difference. Not a good option in my book!

Constitutional Convention – One of the hot debates occurring this year is whether to have a Constitutional Convention or not. There are arguments on both sides but here are a few facts to consider:

The question of calling a constitutional convention must be put before the voters every 20 years. The ballot proposal must be passed “if approved by three-fifths of those voting on the question of a majority of those voting in the election.” (Whatever that means.)

The last convention was in 1970. A convention may also be called by the General Assembly with a three-fifths vote. But the constitution may also be amended by the General Assembly at any time with a three-fifths vote. In fact 10 sections of the constitution have been amended since 1970.

If the convention is approved, delegates shall be elected as provided by law and shall meet to consider amendments to the constitution. Any changes recommended must be submitted to the voters for final approval.

A key issue for business is the income tax ratio. Currently the constitution provides that “In any such (income) tax imposed on corporations that rate shall not exceed the rate imposed on individuals by more than a ratio of 8 to 5.”

Many unions are opposing the convention fearful that their retirement benefits might be limited.

Those in favor of the convention point to the need for term limits, merit selection of judges and campaign reform that the General Assembly has been reluctant to pass.

The choice is yours on November 4^th.

Preference Law Reappears – We have been advised that a Fox Lake project included a provision that “only Illinois residents could be employed on the job.” This provision is a requirement of a 1986 Act that required project employment in times of high unemployment (defined greater than 5%) be Illinois residents. In 2002 the provision was appearing in contracts and we got the IDOL to request an opinion from the Attorney General regarding the constitutionality of the law. That request was made in a May 1, 2002 IDOL letter to Attorney General Jim Ryan. We also requested that the IDOL not enforce the law until such opinion was issued. In a June 28, 2002 letter from IDOL, they agreed.

We checked every AG opinion that has been issued since then and no opinion was ever issued!

Unfortunately, it is still the law until challenged in court or rescinded by the legislature. It is interesting to note that in a 1987 lawsuit brought by E&E Construction, the US District Court issued a Temporary Restraining Order against the enforcement of the act by the state which the judge considered could be unconstitutional given two cases that were decided based on the prior version of the law. In both cases, the law was found to be unconstitutional. (Bernadi vs Leary Construction & W.C.M. Window Company vs. Bernardi).

Watch your contracts for this provision. If other communities have the clause in their specifications, contact Tim at the LCCA Office.

You may have noticed that the credit markets are in shambles, the stock market looks like a Six Flags roller coaster and your volume is dropping. So what do you do? Based on surviving several periods like this over the last 30 years, the best advice is to wait a few months before making any rash decisions.

The credit market, however, is the most critical to you and to all of your owners. No money, no project. No project, no payroll. Therefore the advice to “Hug Your Banker.” Make sure you are on the “good guys” list.

If you believe many of the experts, the credit market is just waiting for the cash to get back in the game. A local banker recently commented that credit will only be extended to “good customers.” New accounts need not apply!

The same advice might serve your owners also. You have probably already received calls from owners questioning whether they should proceed or just drop the project. You might want to give them the same advice. Be patient and let the roller coaster get to the station before deciding. It should not take that long to get a sense of where the economy is going. Either way a few weeks or a few months may be the difference between a project that succeeds and a project that fails.