|
 At the mid-point of the AGC annual calendar, it is
appropriate to take stock of our progress as well as to
evaluate where our challenges lie as we seek to improve
our businesses, our industry and our country. When I
took the gavel to serve as your President in March, I
outlined five main areas of emphasis for the association
for the year.
Legislation
and
Political Activism
AGC continues as the leader
in the construction industry in the field of government
relations. In the past six months, we worked with
specialty contractors, sureties, and others to craft a
compromise on revisions to the Miller Act which was
signed into law by the President last month. AGC
continues to lead efforts to repeal the "death tax." In
that regard we delivered to members of Congress and the
President toy construction equipment to demonstrate the
fact that the smallest construction firm is likely to be
affected by the death tax because of the capital
investments in the firm. This innovative method of
delivering our message got the attention of the Wall
Street Journal as well as the Congress and the
Administration. While, a tax bill appears to be in
jeopardy, we will continue to push for repeal of the
death tax until we achieve
success.
AGC will also exercise leadership in defeating
the Administration's ill-advised and unnecessary
"blacklisting" regulations. This proposal seeks to
"blacklist" federal contractors with an "unsatisfactory
labor record." The proposal ignores the numerous
safeguards that already exist in the law that protect
employee rights while, in some circumstances, denying
employers of their due process
rights.
In order to maintain our leadership role and our
ability to speak with credibility and clout in the
Nation's Capital, we are examining ways to improve our
grass roots activities and increase participation in the
AGC PAC. We are developing a strategic plan for the PAC
with the goal of increasing our political donations to
$1 million per election cycle. We are also invigorating
our grass roots efforts using a sophisticated computer
program that will allow us to target AGC members in
critical Congressional districts. This program will
enable us to increase contractor communication with
individual Representatives and Senators on crucial
industry votes.
Image and
Workforce
It is well known to all of us
that today's booming economy brings with it the
challenge of finding available workers. We are competing
with each other and with other industries to recruit
people with the skills necessary to succeed in
construction.
The Build-Up! program, which can
only be described as a success, is one attempt to
enhance the image of the industry with young people
while generating interest in a career in our industry.
The trade press, teachers and, most importantly,
students have praised the program for the clever manner
in which it makes a 5th grader excited about the
industry. Build-Up!
tool kits are now in 4,000 classrooms across the
country. However, more work remains to be done.
Build
Up!, which represents the first phase of
AGC's Construction Futures program, will soon be
unveiling the second phase of the program that will be a
junior high school model. We are optimistic that this
program will build on the momentum of the 5th grade
project and give us the opportunity to reach older
students.
Membership and
Member Retention
The best strategy for
increasing membership and retaining members is to
continue to develop products, services, and activities
that demonstrate a real return on investment. One
example of this will be unveiled at this meeting: The
Construction Contractors Guide to the Design-Build
Process. While the design-build process has both
detractors and defenders within the association, it is
clear that the use of the process is increasing in the
public sector. If AGC members are not given the tools
with which to compete in this marketplace, they are
likely to look elsewhere. We must always seek to be on
the cutting edge of providing what the industry
needs.
Our nation-wide network of
chapters, including our Chapter in Puerto Rico, are the
key to our success in our membership efforts. It is the
responsibility of the national association to assist
them in meeting the needs of the membership. This year
we have instituted the concept of "goodwill visits."
These are designed to create more of a dialogue between
chapter leaders, staff, and the national office. Our
goal is to find out what your needs are, what we are
doing right, and what we can do to improve.
Education
 Only AGC provides expansive
opportunities for learning. We continue to revise and
improve our Supervisory Training Program (STP).
In the past few months, we have developed a new
Supervisory Leadership Series that is a shorter
more concentrated version of the STP program that
can supplement the existing series. AGC is also
continuing to provide education opportunities over the
Internet via the Online Institute.
While we provide
opportunities for our present employees, we are also
providing financial assistance to tomorrow's project
managers and senior managers through the AGC Education
& Research Foundation. This year, the Foundation has
awarded scholarships worth over $400,000 to 115 students
at 59 universities.
Improving our
Infrastructure
Despite our continued
efforts, the United States continues to neglect a
crumbling infrastructure. While last year's highway bill
provided a necessary infusion into our surface
transportation needs, Congress continues to struggle
with an aviation reauthorization bill. Meanwhile water
and sewer systems, schools, and other public works
continue to suffer from lack of will and necessary
investment. Through the Rebuild America Coalition
and other activities with industry partners, we continue
to make the case that our quality of life is
jeopardized.
At the same time, there are
those who would like to halt development and restrict
the choices of where we live and how we move around.
No-growth advocates seek to take advantage of a
frustrated traveling public by telling them that urban
and suburban sprawl is the root of their problems. The
challenge for us is to show how smart growth is
achievable through appropriate land use policies,
respect for the environment, and realistic
transportation planning that recognizes the choices that
people make. We are convening a summit of the
construction industry next month with the intention of
developing an industry response to what could be one of
the largest issues of the 2000 elections on both the
local and national level.
In sum, we are making great
strides in our goals for the year, and as we move closer
to the next century, we must remember that there is
still work to be done. AGC, working together with you,
the member, can accomplish many positive things for the
association and the construction industry in the next
six months and the next century. *
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|
Report from the Executive Vice
President and
Chief Operating
Officer |
INDUSTRY
IMAGE
Over the past several years, the growing
workforce shortage and general decline in the image of
the construction industry caused AGC to explore
initiatives to attract workers to the construction
industry and enhance its image. Experts in public
relations urged AGC to explore a long range
campaign focused in the schools to introduce
construction as a viable career to America's youth and
educate school children and their parents about the
positive contribution construction makes to the quality
of life. AGC took that advice and selected a respected
educational industry partner Scholastic, Inc. --
to develop a program to introduce construction to 5th
grade students. In less than one year, AGC launched the
program Build Up! that consists of a
tool kit with teaching guide and materials necessary to
introduce construction to students. Long term, AGC hopes
to develop programs for the junior and senior high
school levels to continue the contact with students
about the opportunities in construction.
The accomplishments thus far
include:
- The first production of
4000 Build Up! kits have been committed to
chapters and members. A second production run has been
ordered to keep pace with orders.
- Overall, the program has
been financed outside the normal AGC budget. Hundreds
of AGC members and 52 AGC Chapters contributed over
$250,000 in development costs necessary to get the
program started. Nearly 70 chapters and countless AGC
members have purchased the 4000 kits that are now in
or on their way to 5th grade classrooms around the
country.
- The junior high module is
in development with a draft of the initial teachers'
guide under review at the Midyear Meeting.
AGC continues to receive
acclaim from the media, contractors, AGC chapters,
teachers and, most importantly, students.
EDUCATION
To meet the growing demand for a
skilled and educated workforce, AGC continues to enhance
and expand its educational programs for supervisory and
management personnel. A summary of 1999 progress
follows:
Supervisory
Training Program (STP)
In late 1997, the Supervisory Training
Program has produced updated editions of STP Unit 3
(Problem Solving and Decision Making), Unit 7
(Accident Prevention and Loss Control), and Unit
8 (Managing the Project: The Supervisor's Role).
Last year an all-new STP Unit 4, Contract Documents
and Construction Law, was released. The three newest
STP rewrites are Unit 1, Leadership and Motivation,
scheduled for a January 2000 release date, Unit 5,
Planning and Scheduling, coming out in the
spring, and Unit 6, Understanding and Managing
Project Costs, due for release in
2001.
An
advisor of the STP Committee has been appointed to
rewrite STP Unit 2 (Oral and Written Communications) and
has drawn up an outline of the new unit. The STP
Committee is also discussing the creation of an original
unit about Computers in Construction Supervision.
The
Supervisory Leadership Series
(SLS)
In an effort to expand introductory management
education, AGC is undertaking the development of the
Supervisory Leadership Series (SLS). SLS is a shorter
(2-1/2 hours each workshop) more concentrated version of
the Supervisory Training Program (STP) that can serve as
an introduction or augmentation to STP, or as a sort of
graduate program for supervisors who have completed all
the STP units.
The first three workshops, designed to deal with
issues of interest to supervisors and foremen, will be
released in the near future. They are Contractors and
Subcontractors Working Together to Create a Trouble-free
Job, Building Positive Relationships Between
Construction Supervisors and Customers, and
Effective Presentation Skills for Construction
Supervisors.
AGC Online
Institute
At the Las Vegas Convention, AGC unveiled a new
approach to delivering Project Manager Training over the
Internet. AGC's "Online Institute" allows project
managers to self-pace education on a number of topics
anytime, anywhere, eliminating the
need to be away
from work and the expense of travel.
The initial program offers classes in
Preplanning, Short Interval Production Scheduling,
Equipment Utilization, and Conducting Effective
Meetings. As interest in this program evolves, more
classes will be developed and added to the
Institute.
The AGC Online Institute provides
state-of-the-art project manager training and is ideal
for both old and new employee skill upgrading.
Management
Advancement Programs
AGC's Project Manager Course and
Advanced Management Program continue to be the most
sought-after executive education programs in the
construction industry. The courses are selling out at
least two weeks before the application deadline and long
waiting lists
have become
standard.
Project Manager Courses are offered three times a
year fall, winter, and spring. Two classes are
held in Dallas, Texas, and one is conducted at a
location near the East or West
Coasts.
The Advanced Management Program is held each
November in Dallas.
Executive
Leadership Forum
As a follow-on program to AGC's
Advanced Management Program, AGC has developed an
Executive Leadership Forum. The program will consist of
four and one-half days of intensive and interactive
learning in the areas of leadership, finance, change,
and strategic planning.
The first class is scheduled for
February 2000 at the Aerobics Center in Dallas and will
be limited to 24 CEOs.
AGC
Education and Research
Foundation
Started in 1968, AGC's Education and Research
Foundation has awarded nearly $5 million in scholarships
to 1841 students attending 180 universities throughout
the United States.
In 1999, 115 undergraduate and
graduate students from 59 universities received one of
the AGC Foundation's 50 named scholarships. In total,
the Foundation provided $424,500 in scholarship dollars
for future industry professionals this
year.
Students awarded an AGC Education and Research
Foundation Scholarship in the 2000 competition will
receive $500 more in scholarship dollars next year. The
Foundation Board of Directors voted during its annual
meeting in January of 1999 to increase the scholarship
award amount from $1,500 to $2,000 per year.
CHAPTER SUPPORT
AND MEMBERSHIP
AGC's strategic plan identified the
Chapter/National Relationship and Membership as critical
issues to be addressed. Over the past several years, AGC
has concentrated efforts on enhancing its relationship
with the chapters and to work together to increase the
value of membership. Recent accomplishments
include:
- As a result of strategic
membership initiatives in 1999, AGC has been
successful in adding two Chapters to the AGC of
America family -- the Ohio Contractors Association
rejoined AGC this spring, and this summer, 25 building
contractors have petitioned AGC to establish a chapter
in El Paso, Texas. These advances follow on the heels
two other chapter successes where AGC added a new
chapter in central Pennsylvania -- the AGC of
Pennsylvania and; AGC of America undertook a
cooperative effort with the GBC of New York to expand
membership in the New York City Area.
- These initiatives coupled
with growth in existing AGC Chapters resulted in a 4%
growth in overall AGC membership.
- In an effort to outreach
to Chapters and to better understand our customers,
AGC of America initiated as series of Goodwill visits
to chapters. Seven Chapters have been visited thus
far, and three more visits are scheduled in the coming
months.
- In June, AGC conducted its
annual James D. Marshall Course for 20 chapter
staff.
- AGC launched a software
implementation business to assist AGC of America and
the chapters in their association management software
needs. Before the end of the year, AGC of America and
several chapters will be converted to the new software
system.
- Executive Leadership
Council (ELC) has launched an effort to reform and
restructure the council to better serve the
association's members. The effort is focused on
drawing the chapters closer together and tightening
the ELC's relationship with the national
association.
- The National Associate
Members sponsored two important events at the Chicago
Midyear Meeting the AGC Silent Auction and the
AGC Golf Classic -- that provide important financial
support to AGC's Education and Research
Foundation.
- The Specialty Contractors
Council has expanded to over 40 individuals and it has
published the first Specialty Contractors Council
Newsletter.
CONSTRUCTION
MARKETS
AGC continues its leadership in relationships
with construction owners, shaping the construction
marketplace and educating its members on emerging trends
in the industry. In the past six months, AGC has:
- Convinced Transportation
Secretary Slater to not require states to mandate the
use of project labor agreements on Federally-assisted
highway construction projects.
- Developed the
Construction Contractors' Guide to the Design-Build
Process. This publication is intended to help
educate contractors unfamiliar with design-build about
issues and concerns related to this contracting
method. A workshop is scheduled at the Midyear to
unveil the publication and a series of seminars are
being planned to further aid in the education
process.
- Published 16 new and
revised design-build contract documents. Secured the
ASC endorsement on the design-build subcontracts (pay
when paid versions). These documents bring elements of
the industry together promoting industry unity, not
fragmentation.
- Expanded AGC product line
by producing or publishing: 1) CM/GC Guidelines for
Building Construction in the Public Sector; 2) AGC
Guide to Construction Financing; 3) Project Delivery
Systems: Options for Success" (videotape); 4) AIA-AGC
Design-Build Teaming Checklist."
- Supported AGC chapter
initiatives to combat efforts by no growth advocates
to stop highway construction, by working with TRIP,
American Highway Users Alliance and others.
- Initiated a task force
with NAVFAC to address the inconsistent administration
of past performance evaluations by contracting
officers.
- Worked with the Damage
Prevention Quality Action Team to produce a damage
prevention awareness video, Dig Safely, which
is part of a new national damage prevention program
available at one-call centers. Without AGC input the
video would have portrayed the construction contractor
as unprofessional.
- Held numerous meetings
with the important owner organizations representing
AGC member customers in the public and private sector
including: GSA, NAVFAC, Corps, Bureau of Reclamation,
NRCS, FEMA, FHWA, USDOT, PIAC, International Council
of Shopping Centers, and BOMA.
LEGISLATION AND
PAC
AGC's most recognized value by the membership is
activism in the legislative process. Through lobbying
and grass roots activities, AGC was successful on a
number of fronts this year:
- AGC ensured that Death Tax
elimination was included in the tax cut package passed
by Congress. AGC worked with the Construction Industry
Manufacturers Association and the Associated Equipment
Dealers Association in lobbying the Congress on the
impact of the Death Tax on the construction industry.
AGC was recognized by the Wall Street Journal
for its successful and innovative lobbying
campaign.
- Worked jointly with other
industry partners to promote enactment of Miller Act
amendments that modernize the Act while still
protecting the taxpayer, the government and the
contractors ability to deliver a safe, quality project
within time and budget.
- AGC supported and the
House passed legislation to force OSHA to reevaluate
their pending Ergonomics Regulation
- AGC created the
Environmental Action Foundation to assist chapters,
members and the industry deal with expanding
environmental laws and regulations.
- AGC introduced a bill in
the Senate to codify a grandfather clause to assist
states shut down by environmental lawsuits.
- AGC is fighting proposed
"Blacklisting" regulations by enlisting congressional
oversight and inundating the docket with comments in
opposition.
- AGC members developed a
Strategic Plan for the Political Action Committee to
foster additional giving and improve
effectiveness.
- AGC was instrumental in
establishing Building a Better America Cause in the
U.S. Congress to provide a forum for discussion of
construction and development issues.
- AGC fought efforts to
redirect highway funding.
- AGC supported the House
passed legislation to take Aviation Trust Fund off
Budget.
- AGC testified in support
of increased funding for state revolving loan fund and
abandoned mine programs.
 HUMAN
RESOURCES AND RISK MANAGEMENT
AGC continues to enhance its products
and services, particularly in the area of human
resources, safety and risk management. Since the Las
Vegas convention, progress has been made in the
following areas:
- AGC has significantly
increased its members' opportunities to network with
each other -- 24 hours a day, seven days a week --
over the Internet by launching three new e-mail
systems commonly called listservs. One is for those
interested in open shop issues. Another
- is for those interested in
human resource issues. The third for those focused on
construction safety and health.
- AGC has organized and
sponsored its first conference for the chapter
professionals who negotiate and/or administer
collective bargaining agreements.
- In conjunction the AGC
Labor and Employment Law Council, AGC held its 15th
Annual Construction Labor Law Symposium.
- AGC provided critical
support for the Montana Chapter's successful effort to
enact a state law prohibiting government mandated
labor agreements.
- AGC has provided a new and
much higher level of direct support for chapters
interested in negotiating partnering agreements with
the Occupational Safety and Health Administration, or
in applying for a grant from that agency.
- AGC has entered into an
agreement with St. Paul Fire and Marine Insurance to
develop a new course for crane operators and to
prepare chapters to deliver that course to their
members.
- AGC has spearheaded the
construction industry's response to the
Administration's misguided proposal to implement
blacklisting regulations that would harm federal
contractors and the federal government.
- AGC has continued to
encourage chapters to implement business development
programs for emerging business enterprises, such as
the Stempel Plan.
- AGC has vigorously
responded to the Administration's legal effort to
minimize the Supreme Court ruling in the
Adarand case, where the Court made it clear
that federal preference, programs, like their state
and local counterparts, are subject to "strict
scrutiny."
COMMUNICATIONS
AGC is continuing to improve the
way we communicate the association's value to its
membership. Whether we communicate to you electronically
through the Internet, biweekly through our national
newsletter, News & Views, monthly through
CONSTRUCTOR magazine, or through division newsletters,
fax bulletins, phone calls as well as committee and
national meetings, AGC is there for you whenever you
need us. If you ever have a question, please feel free
to communicate to us by any of the above means. Our line
is always open at 703-548-3118, fax:
703-548-3119.
Products,
Services and Member Benefits
AGC continues to expand its line of products,
services and member benefits. In addition to the over
400 publications, videos, and contract documents, AGC
has developed an array of member benefit programs to
enhance every contractors bottom line. An overview of
those programs are listed here.
 News &
Views
The AGC national newsletter, News & Views,
communicates timely and relevant news twice monthly
to the entire AGC membership, legislators,
administration officials and the construction trade
press. Contents include information with regard to the
construction industry, chapter programs and activities,
and member programs and benefits.
CONSTRUCTOR Magazine
In continuous publication since 1918,
AGC's monthly magazine CONSTRUCTOR continues its
growth as a management information journal of choice for
the construction industry. Recent articles include a
series on public relations, Construction Company Life
Cycles, and the upgraded AGC website http://www.agc.org/.
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