At the end of April your Board of Governors participated in a full day strategic planning session. The last time we did this was in September of 2001 and I don’t remember it being done prior to that. The Board of Governors meets on a monthly basis but we usually have so much material to cover that it’s difficult, if not impossible, to cover anything in depth. That’s where the value of a full day session, away from the office and the phones, becomes evident. We brought in a professional facilitator who was very good at allowing us adequate time to fully discuss things without letting us get too far off track. Everyone freely shared their opinions and participated vigorously in the discussions.

We came away from the meeting with specific action items assigned to specific individuals and committees to work on. We’ll be following up on these things over the coming months and looking for steady progress. Whenever we sit down again for a session like this, be it next year or the following year, I expect that the action items from this session will be cleaned up completely and that we will be able to move ahead dealing with new issues.

I applaud the Association Staff for their contributions in the planning and organization of this event and I offer my personal thanks to all those Governors who took time away from their busy schedules to participate.

This was a worthwhile effort that will produce positive results and I am proud to have been part of it.

The annual directory is scheduled for distribution this month. A new feature this year will be email addresses that will be included for those who selected this option on the Directory Update form.

Every member will receive two copies in the mail. More copies are available by calling Lisa at the LCCA Office.

The Program Committee Chair Micky Day, DK Contractors, is pleased to announce a joint membership meeting with the Tri-County Contractors Association this September. The meeting will be on September 30 (a week later than our regular meeting date) at the Parkway Chateau Banquets located at the Brat Stop restaurant, Rt. 50 & I-94 in Wisconsin.

This will be an opportunity to talk construction with many contractors who work in southeastern Wisconsin.

Case Construction
700 State Street
Racine, WI 53404
Phone: (262) 636-6011
Fax: (262) 636-6826
MATERIAL SUPPLIER
Paula Inda, Director, Brand Marketing & Comm.
Manufacturer of construction equipment
SPONSOR: Mike Wolff, Lake County Grading

Chicago Title Insurance Company
32 West Street
Waukegan, IL 60085
Phone: (847) 625-2000
Fax: (847) 625-4239
ASSOCIATE
Judy Swanson, Executive Account Manager
Title insurance services
SPONSOR: Mike DeNinno, Lake County Grading

C & L Service & Supply Co., Inc.
11410 Kiley Drive
Huntley, IL 60142
Phone: (847) 515-7950
Fax: (847) 515-7948
SUPPLIER
Steve B. Criss, President
Mark Lewis, Vice President/Safety Director
Dave Boggs, Sales Representative
Contractors equipment & supply’s
SPONSOR: Mike DeNinno, Lake County Grading

DeFranco Plumbing, Inc.
20330 N. Rand Road
Palatine, IL 60074
Phone: (847) 438-0808
Fax: (847) 438-0157
CONTRACTOR
Troy DeFranco, PresidentTodd DeFranco, Vice President
Plumbing Contractor
SPONSOR: Bud Manusos, Manusos General Contracting

Happ Builders, Inc.
28 LeBaron Street
Waukegan, IL 60085
Phone: (847) 775-8888
Fax: (847) 775-8889
CONTRACTOR
Paul N. Happ, Sr. President
Matthew P. Happ, Vice President/Estimating
Lory Aicher, Office Manager
Hank Hormanski, General Supt/Safety Coordinator
General Contractor
SPONSOR: Gerry Dumalski, Boller Construction

Robert Keith & Associates, Inc.
1750 N. Washington Street
Naperville, IL 60563
Phone: (800) 824-9023
Fax: (630) 955-0062
ASSOCIATE
Mark R. Malley, President
Randall K. Moon, Vice President & CTO
Bob Barlow, Account Executive
Surety Bond Specialist - All construction industry bond products
SPONSOR: Mike Henderson, Joseph J. Henderson & Son

Kroeschell Engineering North, Inc.
1171 Northpoint Blvd.
Waukegan, IL 60085
Phone: (847) 473-8800
Fax: (847) 473-8815
CONTRACTOR
Richard A. Pruchniak, President
Rory Gilbert, Vice President
Bob Calking, Project Manager
Barry Klassy, Project Manager
Dave Stavropoulos, Risk Manager
Mechanical/Electrical contractor - HVAC Process piping, Plumbing, Building Automation, Construction & Design
SPONSOR: Paul Nick, Lincoln Financial Advisors

LaForce, Inc.
280 Corporate Woods Parkway
Vernon Hills, IL 60061
Phone: (847) 634-2828
Fax: (847) 634-2727
MATERIAL SUPPLIER
Tony Mainiero, Manager
Jim Costello, Contract Sales
Jason Criplean, Contract Sales
Kate Walter, Contract Sales
Daryl Linnert, Contract Sales
Doors, frames, hardware & specialty products
SPONSOR: Joe Henderson, Jos. J. Henderson & Son

Modern Building Materials, LLC
8011 Green Bay Road
Kenosha, WI 53142
Phone: (262) 694-3166
Fax: (262) 694-9185
MATERIAL SUPPLIER
Jeff Forgette, General Manager
Precast concrete manholes, catch basins, junction chambers & special structures
SPONSOR: Mike DeNinno, Lake County Grading

Traffic Control & Protection, Inc.
31W351 North Avenue
West Chicago, IL 60185
Phone: (630) 293-0026
Fax: (630) 293-0029
MATERIAL SUPPLIER
Robert Chicoine, President
Dave Wittmuss, Operations Manager
Don Tauchen, General Manager & Safety Director
Workzone traffic safety equipment, Rental sales & service, Temporary workzone striping
SPONSOR: Mike DeNinno, Lake County Grading

Jurisdiction Disputes May Cost You Money The Construction Employers Association (CEA) reports that in a case decided on April 20, 2004, the appellate court ruled that a contractor does not have the right to assign the work of one trade over another without prior agreement. In this case, Glass Masters of Westmont, IL was signatory to agreements with both the Glaziers and Ironworkers. Both agreements cover window glazing. The company chose to assign the work to the Ironworkers and the Glaziers funds filed suit.

ERISA obligates an employer to make contributions to a pension fund to which it is contractually obligated for work covered by the Collective Bargaining Agreement. If the Agreement provides that contributions will be made for the work, the company cannot avoid their obligation by assigning the work to another trade. Thus, Glass Masters will have to pay into both the Ironworkers and the Glaziers funds for all the work performed!

If you are signatory to only one agreement, this does not apply to you. But many contractors are signatory to several agreements which have overlapping jurisdiction (skid steer loaders - Laborers/Operators, shingling - Carpenters/Roofers, etc.) The bottom line:

• Make sure you get rid of collective bargaining agreement you no longer work under.
• Where jurisdiction issues exist, get prior written agreement between the unions on who will perform the work.
• Hope this gets appealed and a higher court overrules this decision.

This could be a significant liability for contractors. We also need to make sure that our labor contract negotiators understand this problem and work to eliminate jurisdictional problems.

Wages Increasing - According to a report by the Construction Labor Research Council, the average wage-fringe scale for all U.S. union construction trades is now $37.14. This is a 4.2% increase over a year ago. The increase for Illinois was 4.9% Rates for the past five years are up $6.67, the highest five-year increase since the 1982-87 period.

New York Heavy Highway Operators & Laborers - A new three-year agreement with laborers provides $4.26 over the contract. The first year $1.42 increase will add $.67 per hour to wages for a total of $21.87 per hour. Benefits total about $11 per hour. A four-year agreement was reached with Operators in Albany for $6.00 over the contract. The current wage for a top Operator is $26.07 with about $11 in benefits. The wage and benefits will increase $1.50 the first year but the distribution has not been announced.

Indiana Laborers Agree to Heavy Highway - A five-year agreement has been reached with laborers. The agreement will provide $7.05 over the contract for Lake, LaPorte, Newton and Porter Counties. The base rate for the region increases to $20.94 with an additional $6.30 for Health & Welfare, Pension and Training. Other counties in Indiana will receive a total of $5.80 over the contract. A key contract change is new subcontracting language.

Ohio Settles Teamster Heavy Highway - The Teamsters have agreed to a new three-year agreement totaling $3.90 over the contract. The rate for a top driver will be $20.61 with $7.97 for Health & Welfare and Pension and established a new "apprenticeship fund" with an additional $.10 per hour.

Carpenter Settle in Minneapolis - Carpenters have approved a new three-year agreement that will provide $4.75 over the term. Journeyman wages will be $27.87 with over $11 in fringes.

Philadelphia Bricklayers Settle - Bricklayers have agreed to a new five-year agreement that will provide $11.20 over the term of the contract. The first year increase of $2.00 will bring the journeyman rate to $29.89 per hour. Health & Welfare and Pension add another $11.58 to the package.

HB 913 - Wetlands Policy Act - OPPOSE - The prior bill, HB 422 failed in the Senate so Sen. Terry Link (D-Vernon Hills) stripped HB 913 and inserted HB 422 language. This is now in the Senate Rules Committee. A uniform statewide system is required in virtually all environmental programs. This bill creates a patchwork of regulation that will vary depending on the area. In fact the Lake County Stormwater Management Agency could adopt more stringent rules than anywhere else in the state and charge whatever fees they wish. An alternative is available in SB 2130.

HB 6983 - Buy American - OPPOSE - This bill, sponsored by Rep. Karen May in the House and Sen. Terry Link in the Senate, would require contractors who purchase materials and equipment for incorporation into a state project, to certify that "manufactured articles, materials, and supplies provided pursuant to the contract or subcontract shall be manufactured in the United States." CDB is exempted from the bill, but all other state agencies (IDOT, IEPA, state universities, etc.) are covered. At the very least, this will create a paperwork nightmare as you justify use of foreign manufactured products. Violations may bring debarment for 5 years! The interesting part of this bill is the engineers and architects who spec the equipment are not liable! Currently the bill has passed both the House and Senate. However, a Senate amendment that would exclude telecommunications services and Internet or information services along with pharmaceuticals will require the bill to be reconsidered by the House. This bill may pass!

HB 1414 - Mechanics Liens for Rental Equipment - OPPOSED - The bill would provide lien rights for providers of rental equipment. The bill failed to get out of the Senate Committee and is dead for this session.

HB 4883 - Independent Contractor - OPPOSED - Provides that, if a contractor is a successful bidder for a construction project and purposefully misclassifies one or more of its employees as independent contractors, the contractor is liable to an unsuccessful bidder or an entity contracting with an unsuccessful bidder (including a labor organization). This bill failed to get out of the House and is dead for this session.

HB 4215 - Mechanics Lien Act Amendment - OPPOSED - Currently contractors are required to file Mechanics Liens within 90 days after completion of their work. This bill would extend that to 90 days after SUBSTANTIAL COMPLETION of the entire project. While this might seem attractive to subcontractors, it will probably lead to more retention for even longer periods of time as general contractors protect themselves from third tier claims against subs well after the project ends. This bill failed to pass the House.

Federal Highway Legislation - Both the Senate and House have passed differing versions of a Highway Reauthorization Bill. The Senate bill would provide about $318 billion, about $36 billion more than the House version. Typically, the bills would be sent to a joint House Senate Conference Committee to work out the differences. But Senate Minority Leader Tom Daschle (D-S.D.) is holding up the conference appointments trying to get some commitments on conference participation and funding issues. Meanwhile, a third extension of the current bill will be needed.

The top four seniors in the Lake County Tech Campus Building Trades program were recognized by LCCA during the annual Awards Program at CLC. Jake Paloian, Hardin Paving, presented the Recognition Plaques and $250 gift certificates to:

• Christopher Foster, Richmond-Burton H.S.
• Allen Hansen, Grant H.S.
• Armando Lopez, Grant H.S.
• William Page, Antioch H.S.

The awards are presented annually by LCCA to the top seniors in the class. Students are not only judged on their skill with the tools, but also their attitude and dependability - traits we look for in construction.

Governor Blagojevich has signed into law an amendment to the Illinois Procurement Code that requires bidders on IDOT non-federally-funded projects to participate in apprenticeship and training programs approved and registered with the Department of Labor’s Bureau of Apprenticeship and Training. This requirement also impacts subcontractors.

Since union apprenticeship programs are registered by DOL, this will not affect union contractors. It will help keep non-union contractors off the bid lists!