AGC News & Bulletins - News & Views -- March 30, 2000

During the week of March 812, AGC of America delivered more than 50 educational and professional development sessions to its members, organized 16 social events, awarded 48 chapters and members for excellent work over the past year, and saw more than 3,000 people visit the CONSTRUCTOR Expo.

By all accounts, the 81st Annual Convention was an overwhelming success.
A few of this year's highlights included:

"The networking opportunities at our Annual Convention are unmatched by any other industry event," said newly elected AGC President Ralph Johnson. "The knowledge and insight gained from sharing experiences with others in the industry during our convention is invaluable."

For information on AGC's 82nd Annual Convention in Nashville, Tenn., contact Rick Brown at 703-837-5357 or via e-mail at brownr@agc.org.

On March 21, 2000, AGC's Executive Vice President & CEO Stephen E. Sandherr testified in front of the House Transportation and Infrastructure Committee to emphasize AGC's strong opposition to the recent congressional debate over the repeal of the 4.3-cent gas tax. As Congress considers cutting the 4.3-cent gas tax due to soaring gasoline prices, AGC reiterates that this cut will dramatically affect state highway and transit funding without lowering consumer fuel prices.

Federal fuel taxes are funneled into the Highway Trust Fund and are spent on state highway improvements. The 4.3 cents contributes $7.2 billion a year to the fund. Other proposals to suspend the diesel tax of 24.4 cents have been introduced in the House by Rep. Alcee Hastings (D-Fla.) and in the Senate by Ben Nighthorse Campbell (R-Colo.) The diesel fuel tax contributed $8.8 billion to the Highway Trust Fund in 1999. AGC aggressively opposes all of these efforts.

AGC President Ralph Johnson and Executive Vice President & CEO Stephen E. Sandherr met with House Speaker Dennis Hastert (R-Ill.) to urge him not to support any gas tax or diesel tax reduction. The Speaker expressed his support for AGC's efforts and urged AGC to get the nation's governors active in defending the gas tax.

AGC has written to every Member of Congress and met with Senators, Representatives and key congressional staff. AGC has also issued several press releases and ran full-page ads in the Capitol Hill newspaper Roll Call and the conservative political magazine The Weekly Standard, demonstrating what a significant impact a reduction in the gas tax would have on highway funding. Furthermore, a television station that has affiliates in seventeen metropolitan areas interviewed Sandherr on March 15.

Please call, fax, or write your Governor, Senators and Representative NOW. Urge them to oppose any efforts to repeal or suspend the gas or diesel tax. For a list of talking points and draft letter, please use the two legislative bulletins found on AGC's website.

For additional information, contact Peter Loughlin at 703-837-5366 or via e-mail at loughlip@agc.org.

The Buildings Magazine website, http://www.buildings.com/, has recently added a link to AGC's membership directory to allow its readers access to AGC's database of building contractor members. The web link (http://www.agc.org/News_&_Bulletins/News_&_Views/www.buildings.com/directory/contractor.asp) allows the magazine's readers to use AGC's membership directory to search for building contractor members. Buildings Magazine is the only magazine dedicated exclusively to major building owners, facilities management and development professionals.

For more information, contact Damian Hill at AGC of America at 703-837-5365 or via e-mail at hilld@agc.org.

On the final day of the AGC Annual Convention, AGC's Board of Directors passed a resolution to challenge the new U.S. Department of Transportation (DOT) policy on retainage. AGC plans to file legal action against DOT to dispute this controversial rule.

AGC's resolution states that the Secretary of Transportation denied the courtesy of a reply to AGC's repeated attempts to schedule a meeting to discuss the negative effects of retainage on federal-aid highway construction projects. The consequences for AGC members, specifically small and disadvantaged businesses, regarding retainage are enormous.

This federal mandate is a radical departure from well-established industry practices, requiring prime contractors to pay final retainage to subcontractors before the prime receives retainage from the states and other project owners. This means that the prime will have to finance a significant portion of the work.

For additional information on the "Pay-Before-Paid" ruling, contact Brian Deery at 703-837-5319 or via e-mail at deeryb@agc.org.

Last week the House passed the Small Business Tax Fairness Act that provides $45.7 billion in tax cuts targeted at smaller businesses. Among the provisions in this bill is death tax relief. Under the bill:

The tax bill was coupled with a bill to increase the minimum wage by $1 over two years. Since the Senate has already approved a minimum wage hike and a smaller tax cut bill (with no death tax relief), the next step for the Small Business Tax Fairness Act will be a House/Senate conference committee. President Clinton, though, has criticized the linkage of a minimum wage increase to tax cuts and may veto a minimum wage/tax cut bill should it reach his desk for signature.

For additional information on the Small Business Tax Fairness Act, contact Phil Thoden at 703-837-5364 or via e-mail at thodenp@agc.org.

Bill Introduced To Protect Business Using Cash Method
Hearing set for April 5th

Senators Kit Bond (R-Mo.) and Chuck Grassley (R-Iowa) have introduced legislation (S.2246) to protect small businesses with less than $5 million in revenue who use the cash method of accounting. Under their bill, if a business has an average of $5 million or less in annual gross receipts during the preceding three years, it may use the cash method regardless of any inventory tests required by the IRS.

Similar legislation (H.R.2273) has been introduced in the House by Rep. Jim Talent (R-Mo.) who will hold a hearing April 5 to look at how the IRS unfairly requires small businesses to switch from cash to accrual accounting.

Any AGC members who have been targeted by the IRS and forced to switch from cash to accrual accounting are invited to contact AGC Congressional Relations. Phil Thoden of AGC of America is arranging to provide testimony for this hearing.

Contact Phil Thoden, Director of Tax and Fiscal Affairs, at 703-837-5364 or via e-mail
thodenp@agc.org.

On March 15, the House passed a three-year aviation bill that contains guaranteed record funding levels for the Airport Improvement Program (AIP). The Senate passed the bill last week and President Clinton said he would sign the bill. The bill guarantees funding for AIP of $3.2 billion in FY 2002, $3.3 billion in FY 2003, and $3.4 billion in FY 2004. Funding is currently $1.9 billion for AIP. The bill raises the cap on the Passenger Facility Charge (PFC), which is used for runways, terminal expansion and airport access roads, from $3.00 to $4.50 per flight segment. AGC was successful in including a provision allowing the use of state highway specifications for runways funded with AIP monies.

For additional information, contact Peter Loughlin at 703-837-5366 or via e-mail at loughlip@agc.org.

AGC Extended Key Partnering Agreements at Annual Convention

On March 11 during AGC's 81st Annual Convention, AGC signed three separate partnering agreements with the State Department's Foreign Building Operations (FBO), the Naval Facilities Engineering Command (NAVFAC), and the Construction Industry Manufacturers Association (CIMA).

The agreements were developed in an effort to strengthen cooperation between each of the organizations and AGC. Each party promises a commitment of resources and continued collaboration to reach goals and solve industry issues together.

The agreement with the State Department is particularly lucrative because AGC's international members could benefit from the U.S.-only contractor requirement for the construction of new foreign embassies. The NAVFAC National Partnering Agreement commits both sides, AGC along with NAVFAC, to work together on mutual interests including the use of contractor past performance evaluations. And one highlight of the CIMA agreement embraces the support of AGC's educational outreach initiatives in an effort to improve the image of the construction industry. At the core of all of the agreements, however, is cooperation, congruent promotional activities and strategic partnering.

For more information on the State Department Partnering Agreement, contact Terry Chamberlain at 703-837-5320, chambert@agc.org; for the NAVFAC Partnering Agreement, contact Jim Krause at 703-837-5325, krausej@agc.org; or for the CIMA Partnering Agreement, contact Damian Hill at 703-837-5365, hilld@agc.org.

Top AGC Officers Assume Responsibilities for 2000 and 2001

On March 12, 2000, during AGC's Annual Convention in Seattle, the newly elected AGC officers were formally installed and assumed their positions as AGC's Executive Committee Leaders.

Ralph W. Johnson was elected president of AGC of America. Johnson is the senior vice president of Turner Construction Company, a New York City-based firm, which specializes in general building construction. Johnson has been active in the Associated General Contractors of America since 1980, and served as the president of the New York State Building Chapter in 1990. He previously served as chairman of AGC's Building Division and is currently a national director. During his term, Johnson will focus on validating the theme "Constructors Leading The Way."

Robert J. Desjardins was elected as senior vice president of AGC. Currently, he is executive vice president of Cianbro Corporation, a Pittsfield, Maine-based firm, which specializes in highway/bridge and heavy-industrial construction, and has been an AGC member since 1951. Desjardins was president of the AGC of Maine chapter in 1991.

Larry C. Gaskins was elected as vice president of the organization. He is president of L.C. Gaskins Construction Co., Inc., a Jacksonville, Florida-based firm, which specializes in heavy-industrial construction. The firm has been an AGC member since 1977. Gaskins was president of the Northeast Florida chapter in 1992 and 1993, and is past chairman of the Heavy-Industrial Division.

Francis "Bud" W. Madigan, Jr. was elected as AGC's treasurer. He is also chairman of F.W. Madigan Company, Inc., a Worcester, Massachusetts-based firm, which specializes in general building construction. The firm has been an AGC member since 1953. Madigan was president of the AGC of Massachusetts chapter from 1971 through 1973, and is past chairman of the Building Division.

National Craft Training Awards Presented at Annual Convention

During the Workforce Development Committee Meeting at the AGC Annual Convention in Seattle, Corna/ Kokosing Construction Company of Columbus, Ohio, and Western Summit Constructors of Scottsdale, Ga., were each presented with a 1999 National Craft Training Award. These two companies demonstrated a commitment to craft training by devising and implementing superior craft training programs.

For information on submitting your entry for next year's competition, contact John Heffner at 703-837-5333 or via e-mail at heffnerj@agc.org

AON Build America Award Winners Announced at AGC's Annual Convention

AGC proudly announced the winners of the 2000 AON Build America Awards during a special ceremony at AGC's 81st Annual Convention. These awards, better known as the construction industry's "Oscar," have recognized excellence in construction since 1972. The Build America Awards honor the best of the best and promote excellence in construction, innovation and quality.

AON Risk Services is AGC's partner and sponsor of this prestigious program. AON is one of the nation's leading insurance brokerage and risk management services organizations.

The following awards were presented by AON Risk Services' Construction Services Group Chairman of Surety Richard Ferrucci and AGC Immediate Past President Terry Deeny:

New Building Construction--Barton Malow/Beacon Skanska (joint venture) of Boston, Mass., for the Shriners Burns Hospital

Building Renovation--Mosser Construction, Inc. of Fremont, Ohio, for the Valentine Theatre Renovation

New Building ($5 million and under)--Hagerman Construction Corporation of Indianapolis, Ind., for the Congressional Medal of Honor Memorial (SEE PHOTO 1)

Building Renovation ($5 million and under)--Douglas E. Barnhart, Inc. of San Diego, Calif., for the Robert A. Fergusson Special Care Facility

New Heavy-Industrial--General Construction Company of Seattle, Wash., for the Bonneville Juvenile Dam Bypass Outfall Structure

New Highway--Kokosing Construction Company, Inc. of Fredericktown, Ohio, for the State Route 129/Butler Regional Highway

Highway Renovation--F.E. Ward, Inc. of Vancouver, Wash., for the Sunset Tunnel Emergency Repair on U.S. Highway 26

New Municipal-Utilities--Advanced American Diving Service, Inc. of Oregon City, Ore., for the East Bank Esplanade, Phase 1

Municipal-Utilities Renovation--Cianbro Corporation of Pittsfield, Maine, for Schaghticoke Water Conveyance Replacement Project

New Construction Management--Hensel Phelps Construction Company of Austin, Texas, for Base Realignment and Closure project at Fort Leonard Wood, Mo.

Construction Management Renovation--The Christman Companies of Lansing, Mich., for the University of Notre Dame Main Administration Building Restoration and Renovation

Construction Management Renovation--Gilbane Building Company of Providence, R.I., for the New Jersey State House Dome Restoration (SEE PHOTO 2)

New Design-Build--Gould Construction, Inc., of Glenwood Springs, Colo., for the Grizzly Creek Diversion Structure and Pipeline

Design-Build Renovation--J.S. Alberici Construction Company of St. Louis, Mo., and Black & Veatch Corp. for the Linnwood and Howard Avenue Ozonation Facilities (SEE PHOTO 3)

The following contractors were given a Build America Merit Award, the equivalent of a runner-up designation:

The Parent Company of Brentwood, Tenn., for the Renaissance Center
Rentenbach Constructors Inc. of Greensboro, N.C., for The Holly Inn Historic Renovation
Angelo Iafrate Construction, L.L.C., of Baton Rouge, La., for the I-10/I-12 Rehabilitation
Brasfield & Gorrie, L.L.C., of Birmingham, Ala., for the Paul B. Krebs Water Treatment Plant
Emery Sapp & Sons, Inc., of Columbia, Mo., for Route 5, Chariton County,
Job No. J2P0265

For information on next year's Build America Awards program, contact Damian Hill at 703-837-5365 or via e-mail at hilld@agc.org.

AGC Unveils Contents of Time Capsule at Annual Convention

AGC's Immediate Past President Terry Deeny officially opened the more than forty-year-old time capsule while speaking at the Opening Board of Directors Session during AGC's 81st Annual Convention. Vice President Richard M. Nixon had officially sealed the cornerstone containing the time capsule at the dedication of the original AGC headquarters at 1957 "E" Street in Washington, D.C., in 1958. The time capsule, removed in August 1999 when AGC sold the building, was safely kept at AGC's new offices in Alexandria, Va., and hand-delivered to the convention site in Seattle.

Among the many interesting artifacts included in the time capsule were: predictions made by editors of architectural, engineering and construction magazines about the year 2000; a booklet containing archaic contracting methods; and other association-related materials.

AGC Recognizes Contractors for Outstanding Teamwork with Partnering Awards

AGC proudly announces the winners of the 2000 Marvin M. Black Excellence in Partnering Awards. These awards, established in the name of AGC's 1991 President Marvin M. Black, honor contractors who recognize the numerous advantages of teamwork and cooperation in construction and offer incentive by promoting the importance of the partnering philosophy. The Liberty Mutual Group, a leading provider of insurance programs and services, is AGC's partner and sponsor of this prestigious program.

The following received awards presented by Liberty Mutual Vice President and Manager of Commercial Marketing John Ryan, 1991 AGC President Marvin M. Black, and AGC Immediate Past President Terry Deeny at a special breakfast on March 10, 2000, during AGC's 81st Annual Convention in Seattle:

Cedar Valley Corp of Waterloo, Iowa, for the U.S. Highway 71 Corridor project in Dickinson County, Iowa.

C.R. Klewin of Norwich, Conn., for the North Dorm Complex Renovation Project at Connecticut College in New London.

D.H. Blattner & Sons of Avon, Minn., for the Skunk Creek Channel Improvement Project in Glendale, Ariz.

General Construction Company of Seattle for the Bonneville Dam Juvenile Bypass Outfall Structure in North Bonneville, Wash.

Matous Construction of Temple Texas, for the Hornsby Bend Sludge Management Facility in Austin, Texas.

McCarthy Building Companies of St. Louis, Mo., for the Transbay Transit Terminal Seismic Retrofit in San Francisco.

Mivan, Inc. of Orlando, Fla., for the Universal Studios--Islands of Adventure^SM--The Lost Continent project in Orlando, Fla.

Pulice Construction of Phoenix for the Topock-Davis Dam Highway project in Bullhead City, Ariz.

Sundt Construction, Inc. of Tucson, Ariz., for the Pima Loop 101-Price T.I. Phase III project in Mesa and Tempe, Ariz.

The program--Partnering: A Concept For Success--that champions these awards was developed to advocate a common sense approach to avoiding legal conflict and bringing positive and cooperative attitudes to construction projects. The awards identify excellence in partnering, celebrate successes, honor stakeholders and perpetuate the partnering process, as well as create a momentum to continue these practices.

For information on the 2001 Marvin M. Black Partnering Awards, contact Damian Hill at 703-837-5365 or via e-mail at hilld@agc.org.

Fall Protection Task Force Plans Safety Teleconference

More than 3,000 construction associates throughout the Carolinas, as well as U.S. Navy personnel, participated in a unique safety-training program in January 1999. "Carolinas Trenching and Excavation Safety Awareness Day," a live, interactive video-teleconference addressed the various hazards and safety controls associated with trenching and excavating.

Due to the overwhelming success of the trenching and excavation program, another live video-teleconference will be held on April 13, 2000, focusing on "Fall Protection in Construction." This program will highlight fall protection equipment and the advancements made in personal fall-arrest systems including: self-retracting lifelines, full-body harnesses, shock-absorbing lanyards, rope grabs, anchorage connectors, horizontal safety systems, net systems, catch platforms and all kinds of new and innovative fall protection devices currently on the market. This time, however, the broadcast capabilities will be expanded to include a national audience.

Carolinas AGC is offering this video-teleconference to all AGC chapters. Due to the expenses related to such a project, a $100 dollar down-link fee will be charged for each site a chapter hosts.

For more information and for tips on setting up viewing sites, please contact Chip Murray at 704-372-1450, ext. 249.

New Safety Slogan Unveiled At Annual Convention

AGC's Safety & Health Committee recently challenged its members to create a new slogan. Don Woodruff of Woodruff Construction in Fort Dodge, Iowa, submitted the winning entry, and the result is a compelling one. The new safety slogan--Safety. It's a matter of life.--represents AGC's dedication to promoting safety in the 21st century.

Top-Notch Safety Programs Recognized With Construction Safety Excellence Awards

At the 2000 Safety Awards Breakfast sponsored by Willis, AGC bestowed the first-ever Construction Safety Excellence Awards and presented its annual National AGC Safety Awards. Eleven contractors and chapters were awarded for their commitment to safety with these coveted awards, which recognize the importance and value that safety plays in the construction workplace.

Corporate commitment, worker training and active employee participation all result in safe and healthy work environments. AGC realizes that a strong commitment to safety protects our family members, friends and employees, and is a sound business decision.

The following companies were recognized for their outstanding first-rate safety programs and commended with Construction Safety Excellence Awards:

TD Industries of Dallas, Texas, for specialty associate contractors with 200,000+ work hours;
Pizzagalli Construction Inc. of South Burlington, Vt., for heavy contractors with 200,000+ work hours;
Trumbull Corporation of Pittsburgh, Penn., for highway contractors with 200,000+ work hours;
Deeny Construction Company Inc. of Seattle, Wash., for municipal-utility contractors with less than 50,000 work hours;
Saliba Construction Company of Dothan, Ala., for building contractors with 50,000 to 200,000 work hours;
WG Clark Construction Company of Seattle, Wash., for building contractors with 200,000+ work hours.

AGC Immediate Past President Terry Deeny awarded the highly esteemed H.B. Alexander Award to Randall and Blake, Inc. of Littleton, Colo., for their unmarred safety record during the prior calendar year. In addition, the following AGC chapters were awarded with National AGC Safety Awards (NASA) for lowest overall incidence rates:

Carolinas AGC, Inc. for chapters with more than
200 members;
AGC of Virginia, Inc. for chapters with 100 to
200 members;
AGC of Wisconsin, Inc. for chapters with 50 to
100 members; and
Master Builders' Association of Western Pennsylvania, Inc. for chapters with fewer than 50 members.

AGC, its members, and chapters continue to dedicate resources to improve safety performance in the construction industry. AGC's Safety & Health Committee works to maintain relationships with trade unions, insurance carriers, and government agencies as well as analyze legislative and regulatory initiatives, and monitor reports on safety and health developments.

For information on the 2001 safety awards program, contact Safety & Health Services at 703-837-5409.

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Build Up! Promotional Video Unveiled and Well-Received at Annual Convention

AGC recently announced the availability of the first Build Up! promotional video. In an effort to encourage chapters and members to take advantage of AGC's industry image program, this promotional video was developed as an avenue to disseminate information about the many benefits of the program.

The video shows the Build Up! curriculum in action in one fifth grade classroom. The "Build Up! In The Classroom" video is available on the AGC website at www.agc.org under the heading Build Up! AGC chapters and branches will soon receive a complimentary copy of this video.

The Build Up! program continues to receive strong support from AGC chapters and members, with more and more tool kits being placed in classrooms everyday. In the near future, AGC is preparing to release the next stage of the Construction Futures campaign with a middle school curriculum.

For additional information on Build Up! or to search for teachers and their sponsors by state, log onto the AGC Build Up! website at http://www.agcbuildup.org/. Or contact John Heffner at 703-837-5333 or via e-mail at heffnerj@agc.org.

In Memoriam

The Wyoming Contractors Association was awarded Outstanding Community Service Project for going to great lengths to repair the only road leading to a Boy Scout Camp near Yellowstone National Park.

Carolinas AGC was awarded Outstanding Individual PR Campaign for recognizing and meeting member needs by developing the "Construction Barometer," which provides local industry information in both quantitative and qualitative synopses to members.

AGC of South Dakota Building Chapter was awarded Outstanding Individual PR Campaign for mobilizing more than 30 local AGC organizations and compiling a large-scale "Career Expo" in an effort to combat the shrinking workforce problem in the construction industry.