Well, this is it.

I remember writing my first column back in January of 2004 and it just doesn’t seem that long ago. Time really does fly when you’re having fun and I’ve had a lot of fun these last two years.

As I close out my term as President it seems an appropriate time to acknowledge those people who have been so very helpful. I am especially grateful to Association Staff for all of their help and support. After working with Gary during this time I have a new understanding and appreciation for all that he does on our behalf. Gary is very well respected among the other contractor groups throughout the State. He is well known in political circles and his opinion is valued in groups such as ICIC and MARBA. I have attended a few meetings in Springfield with him and can testify that people listen when Gary speaks. We are fortunate to have Gary with us and I give him my sincere thanks for all of his help during my term.

I have been fortunate to be President during a time when we have had the best office staff that I can remember during all of my years with this group. Lisa and Terry are very effective and productive and keep the office running smoothly. Heidi has just joined us and is already making a difference. We look forward to big things from her in the future. Sheila left us earlier this year but I would be negligent not to thank her for all of her contributions during her time with LCCA.

I also need to thank the Officers, Directors, and Governors for all that they do. This is a group of dedicated volunteers working together for the good of the Association and the industry. They take time away from their businesses and personal lives without hesitation and give selflessly of themselves and their resources to support this Association. I offer my sincere appreciation and thanks to each and every one of you.

I would also like to thank everyone serving on Committees. The Committees are the lifeblood of this organization and the work done at the Committee level is what keeps the Association moving forward. Much of what you do is done in anonymity but I want you to know that I know who you are and I truly appreciate the time, ideas, creativity, and support you provide.

Finally, I want to thank the membership for your participation in Association activities and events. Your attendance at our monthly membership meetings, educational programs, and social events is appreciated. I hope you find our programs enjoyable and helpful and I look forward to seeing all of you at these events in the coming years.

It has been an honor and a privilege to serve as your President. It is an experience I will never forget.

LCCA former employee, friend and life long supporter, Lainy Lea MacGruder (73), passed away after a long illness on November 21 at home in Grand Junction, Colorado.

Lea was dedicated to serving and volunteered for numerous organizations, including Cancer and Heart Associations, and served as a Cub Scout Den Mother. Her career included Administrative/Secretarial services in finance, medicine and law (1951-1975). She joined LCCA in 1977 as Site Secretary for Safety and in 1980 took over the duties of Office Manager and Administrative Assistant.

Lea was the wife of LCCA Executive Vice President Bob MacGruder, and mother to Jeffrey and Gregory Ramsey, Valorie MacGruder Nystrom and grandmother of eight.

Lea lived her personal philosophy: It is easier to be pleasant and cheerful than to carry the burden of unhappiness. She made a huge contribution to the success of LCCA and we will all miss her!

The Officers and Directors for 2006 were unanimously approved at the Annual Meeting last month. Your leadership for next year includes:

Mike Henderson, Jos. J. Henderson & Son - President
Micky Day, DK Contractors – 1st Vice President
Rick Grabowski, Pickus Construction & Equipment – 2nd Vice President
Lyle Ehlers, Boller Construction Company - Treasurer
Gary Dowty, LCCA - Secretary
Mike Temple, Mechanical, Inc. – Past President
Jim Pickus, Pickus Construction & Equip. - MARBA Director
Tom Hegel, Kelso Burnett - Director
Karen Johnson, Roughneck Concrete Cutters - Director
Paul Nick, Lincoln Financial Advisors - Director
Mike Ryan, H.H. Holmes Testing Laboratories - Director
Steve Thelen, Thelen Sand & Gravel - Director

Accepting Member of the Year Awards were:

General/Prime Contractor – Jos. J. Henderson & Son
Subcontractor – AirCon Refrigeration & Heating
Supplier – Burris Equipment
Associate – H.H. Holmes Testing Laboratories

The award winners were selected by the membership who voted for as many as two LCCA members in each classification – except their own! Congratulations to all the winners. They are winners at LCCA and obviously winners in the industry. In creating the award, it was agreed that winners will not be eligible to win again for a few years. So next year is a new contest.

The newly named APEX (Award for Project Excellence) was presented to Jos. J. Henderson and Son for the Lake Forest Water Treatment Plant Membrane Rehabilitation Project. Bill Marshalla, Project Manager, accepted the award. Mike Thomas, Lake Forest Superintendent of Public Works, and Bill Hensel, Chief Water Plant Operator, accepted a plaque for the city recognizing their spirit of cooperation that resulted in a job all participants could be proud of.

Partners Awards were presented to all LCCA members involved in the project including:

Acme Brick & Supply
T.J. Adams Group, LLC
Aldridge Electric, Inc.
Althoff Industries, Inc.
Brian Fritz Photography
Burris Equipment Company
Columbia Pipe & Supply
Drydon Equipment
H.H. Holmes Testing Laboratories
Ill. Architectural Glass & Aluminum
J A C Masonry
Jack Frost Ironworks
Kirschoffer Truck Service
LaForce, Inc.
Lake County Hose & Equipment
Lake County Pipe & Supply Co.
Lakeland/Larson Elvator Corp.
Lee Jensen Sales Co.
McCann Industries
Mechanical, Inc.
Moonwatcher, Inc.
Northfield Block Company
Thatcher Engineering Corporation
Thelen Sand & Gravel
Vulcan Construction Materials

LCCA will now accept advertising for the Annual Directory scheduled for distribution in January. We will be upgrading the directory by adding tabs to make use easier and to provide a means for you to advertise your company year-round to LCCA members and others. The advertising rates for the 8½” x 5” pages will be:

Full Page Black & White $500
Full Page Color $750
½ Page Black & White $300
½ Page Color $425
Back Page (color) $900

The LCCA Directory is distributed to members, engineers, architects, building commissioners, developers and many others looking for construction supplies and services. We only have 12 pages of advertising available. To make sure you get in, LCCA Office ASAP.

2006 Membership Committee Chair, Micky Day, DK Contractors, is already starting to make waves and you could be the winner. Every year the Membership Committee has a contest with prizes for the winning team. Now you can get in on the fun and have a chance to win some great prizes. Here are the details.

Between now and August 1, 2006, every new member you sponsor will earn you one chance to win a $500 prize. At the September Membership Meeting, a drawing will be held for the prizes.

If you need a Membership Application call the LCCA Office and we will send you a copy. To sponsor a new member you must be a current member in good standing. Remember, to be in the drawing, your name and company must be listed as the sponsor. The more new members you get, the better your chance for the big prize. Call Heidi at the LCCA Office if you need additional information.

The annual trade show at Midlane Golf Resort was a great success. And some attendees were luckier than others. After the exhibitors held drawings for everything from Hawks tickets, to TV’s, to machine rentals – LCCA had a drawing for Bass Pro Shop Gift Certificates. Those winners were:

$500 - Matt Pecora, Pecora Excavating
$300 – John Freitag, CISCO
$200 - Ted Maj, Keno & Sons Construction

Congratulations to all the winners.

The LCCA Annual Conference is starting to fill up and only needs YOUR name to get the party going. What better way to spend early March than basking in the Florida sun and soaking up the wisdom provided by several speakers? What a great way to thank a key employee for a great effort – and they might learn something to be even more productive next year! Remember, we only have 20 guaranteed rooms. Pre-registered so far include:

Jonathan Pease & Amy Cox, J. Pease, Inc.
Scott Nelson & Todd Nelson, H.H. Holmes Testing
Mike & Liz Ryan, H.H. Holmes Testing
Julie Berger & Mark Chamberlin, Berger Excavating Contractors, Inc.
Don & Sheila Mors, Pipe Freezing Services, Inc.
Mike & Penny Temple, Mechanical, Inc.
Don & Joanne Robison, Waukegan Steel Sales, Inc.
Margery Newman & Robert Buege, Ogletree
Wayne Pratt, Oasis Business Group, Ltd.
Gary and Sandy Dowty, LCCA

Mark your calendar for March  3-8, 2006 – Marco Island, Florida. If you have any questions, call Heidi at the LCCA Office or Chairman Mike Ryan, H.H. Holmes Laboratory. The cost is just $1,125 per person double occupancy. You can register (deposit) online at www.lcca-il.org/events .

CISCO has convened a group of union leaders and association officials to look for legislation that both sides would support in the upcoming session of the legislature. After a preliminary meeting, the discussion has been limited to two pieces of legislation: “Truth in Employment Act” and a “Prompt Pay” bill.

Truth in Employment – This bill has been introduced in one form or another for a few years. The aim is to curtail “1099 workers” that are classified as Independent Contractors, but, in the view of the union, should be classified as “employees.” There is much abuse of the Independent Contractors rules by contractors who are looking to get around union contracts (and wages and benefits) by paying tradesmen direct and claiming they are “Independent Contractors.” They will pay whatever the market will allow and send them a “1099 Form” to account for the expense.

This bill would require you to file with the Department of Revenue a form for every independent contractor you use “no later than 3 days after the first date of the calendar year on which the worker performs work for the employer…” And much of the information you submit would be available to the public under the Freedom of Information Act.

To see if this will impact you, check the 1099’s you will send this year and ask yourself if they meet the following test:

1. “The individual has been and will continue to be free from control or direction over the performance of the service, both under his or her contract and in fact;
2. “The service is either outside the usual course of business for which the service is performed or the service is performed outside of all the places of business of the enterprise for which the service is performed; and
3. “The individual is engaged in an independently established trade, occupation, profession or business.”

If they do not meet this test, they will be considered employees and you will be required to put them on your payroll. A copy of the bill is available from the LCCA Office.

We are being asked to support this bill and to help keep non-union competition out of union construction. It will help level the playing field making it more difficult for contractors to use low paid workers when others are using union subs.

We would like your reactions. Since the bill will move quickly, please get your comments to the LCCA Office ASAP.

Prompt Pay – We have received no formal proposal, but the bill we will be asked to support is being prepared by the Illinois Mechanical and Specialty Contractors Association (IMSCA) – and will probably be similar to bills introduced into the general assembly in past years by IMSCA.

A Prompt Pay bill does exist in Illinois – passed in 1986 by the Illinois Construction Industry Committee (ICIC) – that requires owners to pay 1% per month for all “approved” bills over 60 days old. It also requires General Contractors to pay subs and suppliers within 15 days of receipt of payment from the owner. If subs are not paid on time, the general contractor owes 2% per month on the outstanding balance.

This year, HB 2436 was one of several bills dealing with prompt pay that was considered. This bill was patterned after a bill that passed recently in Oklahoma. Called the “Fair Pay for Construction Act,” the bill covered both public and private construction and was opposed by the CDB among others. Briefly, the bill required payment by the owner within 30 days and a written notice within seven days of receipt of invoice detailing any reductions in the amount and the reason for the reduction. The same is true for lower tier invoices and payments. Payments to subs and suppliers are due within 10 days after receipt of payment from the owner.

Penalties include the right to suspend performance or terminate the contract, and interest of 1½% per month. If you have any comments on this issue, please contact Gary at the LCCA Office. Copies of the bills mentioned are available from the LCCA Office.

ICIC Report – The ICIC Veto Session Wrap-up is enclosed for your information. With passage of the Construction Management Bill, the Design-Build Bill and a significant contribution to the Workers Comp Reform, this has been one of the most productive sessions for contractors in many years. We congratulate our Legislative Consultants: Kim Robinson, Jack Dorgan and Jim McPike for a great effort!

Bank of Waukegan has a new name. The Bank of Waukegan has changed their name to NorStates Bank. For some time the bank has been acquiring other banks beyond the Waukegan city limits. And the change of name is a way to say their neighborhood just got larger. The NorStates name and new logo will begin appearing soon.

Wm. A. Randolph, Inc. is looking for a Construction Administrative Assistant. Responsibilities include Answering calls, project document and report preparation, subcontractor and supplier contract administration, change orders, insurance requirements and more. Two to three years of construction administration experience is required along with familiarity with several software programs. For more information, contact Eric Handley or send a resume and salary requirements to eric.handley@warandolph.com.

Keith Nelson, Morse Electric, is looking for an LCCA member interested in hiring a University of Illinois Construction Management intern next summer. If you are interested, contact Keith at (815) 378-9227.