CIRT brought together more than 75 chief executives in what was a fast-paced, highly informative conference where members and guests received briefings and updates on key policy and legislative matters, and economic

forecasts. And, what is a signature aspect of the Round Table, the value of membership was reinforced by the ca-maraderie and excellent networking opportunities that was infused throughout the conference.

2011 Spring Conference

The Regulatory Complex Bill Kovacs, Senior Vice President, Environment, Technology & Regulatory Affairs Division at the U.S. Chamber of Commerce kicked-off the briefing sessions with remarks on the wide-spread impacts of government regula-tion and told the CIRT members that the regulatory burden (as counted in pages) of just one agency—the EPA—now outstrips even the federal tax code Regulatory promulgation at the EPA often circumvents the nor-mal procedure; instead it is driven by litigation whereby the agency is sued (sometimes with its full approval) and then settles with its erstwhile opponent only to give to that litigant virtually everything it wants while ex-cluding the parties most effected by the rule from the process. The U.S. Chamber has been leading efforts to combat the cycle of excessive regulation through its “Project, No Project” initiative (which attempts to identify projects that are stalled and/or killed by groups using regulatory claims), and by advocating solutions such as: permit streamlining and shortening statutes of limit for filing claims that may prevent progress on projects. A copy of Bill’s presentation can be found on CIRT’s website; or contact Jane Bonvillain.

Back to Basics: Passing a Transportation Authorization Bill “Overall, the political environment is not ideal for a large infrastructure bill,” Pete Ruane, President & CEO of ARTBA, told the CIRT members. “The stimu-lus package is perceived as a failure and because it was tied closely to infra-structure projects and creating jobs (even though the lion share of the spend-ing had nothing to do with infrastructure – it was “sold” that way by the Ad-ministration) it has clouded the prospects for an authorization bill.” Ruane said also, notwithstanding, there still remains a chance we will see a new transportation bill before the end of this year and that the House is more likely than not to pass something out of committee and onto the floor for a vote. Whether this bill is to the liking of the “community” is highly unlikely with re-spect to total dollars in Ruane’s estimation but, nevertheless a bill would bring some certainty to the system and allow for longer term policy changes and

planning. Also during this session, Federal Highway Administrator Victor Mendez, touted some of the successes achieved in the transporta-tion arena (particularly the reduction in traffic related fatalities, and the expenditure of 72% of the $26.5 billion from the ARR “stimulus package” assigned to the FHwA). Mendez contended that the President was highly engaged with transportation issues/spending and would further efforts to pass an authorization bill this year, although he did not indicate what expenditure levels the Administration would support or request.

The Economic Outlook David Wyss, Chief Economist at Standard & Poor’s, summed-up the economy as: the recession is over, and we’re finally beginning to grow, but we’re not growing very fast because of the massive debt, leaving us vulnerable to threats/shocks both domestically and internationally that may send the economy into a sec-ond “dip”. Wyss also said that looking down stream certain potential problems exist: (1) the Federal Re-serve’s balance is 3-times its norm (with the QE-1 & 2 programs) – the Fed has to get out of these posi-tions, but how without setting off inflation; (2) interest rates will be under pressure to rise (already seeing this in Europe); (3) commodity prices have swung up; how much further they go may determine the strength of any recovery; (4) the U.S. dollar has lost value relative to other major currencies; and (5) the federal government has been running huge yearly deficits thereby increasing the national debt ($14 trillion plus) so that it is on a trajectory to reach 90% of the nation’s GDP , which is viewed as totally unsustain-able and a point of sovereign debt collapse. Taken together, it is a difficult and risky road ahead to recov-ery with construction markets not likely to see positive private spending levels until 2013 at best. For a copy of David’s presentation, please contact Jane Bonvillain.

MeetingReport

State of the States Panel

Donna Arduin, partner with Arduin, Laffer & Moore Economet-rics; and Brian Fraser, Esq., Richards, Kibbe and Orbe, LLP, teamed-up to provide members a look at the “State of the States”. Given the large challenges and state constitutional constraints placed on the states, most have done a reasona-bly good job of adverting disaster and dealing with their budget and debt problems with some even modifying and placing controls on their mounting pension obligations. How-ever, others have not yet come to grips with the core prob-lems (e.g. Illinois) and many have resorted to tax increases and short-term fixes to systemic problems. Public policies do matter when it comes to economic vitality at the state level, as businesses and people vote with their feet seeking freer more entrepreneur-friendly states to live and set-up busi-nesses (e.g. Texas). Options for the state are stark: (1) take on fundamental fiscal reform; (2) address/modify the pen-sion liabilities; (3) pursue legislation that would permit states

to declare bankruptcy (as a leverage to restructure their pension and collective bargaining agreements); and (4) generate more income through more attractive business environment. Please contact Jane Bonvillain for a copy of their presentation.

Conference Highlights, cont. Spring 2011 Meeting Report Page Two

CIRT Board Member Ed McSpedon (HNTB Corp.) introduces the featured panelists, Donna Arduin & Brian Fraser.

The Wednesday sessions began with a networking breakfast, committee reports, and the election of new officers followed by remarks from the Federal Railroad Administrator Joseph C. Szabo. Administra-tor Szabo talked about the President’s vision for High Speed Rail and said over time, the goal is for a number of regional routes to link cities and eventu-ally regions together, creating a seamless network that offers an alternative to air and auto. “But like the development of the interstate highway system, it will take time and money,” commented Szabo. But, where is the money going to come from ...is still unclear.

The conference concluded with a fascinating and entertaining point/counterpoint featuring Michael Bar-one and William Galston. Barone is Senior Political Analyst for the Washington Examiner, a resident fel-low at the American Enterprise Institute, and a Fox News Channel contributor and co-author of The Alma-

nac of American Politics; Galston is a political theorist and the director of the Institute for Philosophy and Pub-lic Policy at the School of Public Policy of University of Maryland, College Park. In addition, he is a Senior Fel-low of Governance at the Brookings Institution. He was also a senior adviser to President of the United States Bill Clinton on domestic policy,

Joe Szabo, Administrator, Fed-eral Railroad Administration,

addresses the members.

Michael Barone and Bill Galston were “bastions of civility” in spite of their political views and really “wowed” the members with their knowledge of history and public policy acumen.

CIRT President Mark Casso gives the members an update on some of the organization’s activities during the networking breakfast.

CIRT Elects Bob Alger as Chairman Robert E. “Bob” Alger, President & CEO of The Lane Construction Corporation, was elected Chairman of the Construction Industry Round Table (CIRT) for a term of one year at its Spring Conference.

“Working collaboratively with the CIRT Board of Directors and members over the next year,” says Alger, “I will dedicate a great deal of time and energy in building a greater awareness with leaders outside of the industry as it relates to the desperate need to properly fund and improve our nation’s first-class infrastructure.” Alger is President & CEO of The Lane Construction Corporation, one of America’s premier heavy civil contractors. Founded by railroad engineer John S. Lane in 1890, Lane con-structs quality highways, bridges, locks, dams, racetracks, and mass transit and airport systems in 20 states. In its 121-year history, Lane has never failed to complete a con-tract. “Bob’s election continues a tradition of having strong leaders who represent the finest qualities and abilities in our industry,” commented Mark A. Casso, CIRT’s President. “Bob will bring energy and vision to the role of Chairman, with a dynamic leadership style” noted Mr. Casso.

Also at the annual spring conference in Washington, DC, CIRT elected the following industry executives as officers of the Board. Each will serve a one year term. Patrick MacLeamy (CEO of HOK Group, San Francisco, CA) as Vice Chairman; Steven T. Halverson (President & CEO of The Haskell Co., Jacksonville, FL) as Treasurer; and Linda Figg (President & CEO of Figg Engineering Group, Tallahassee, FL) will continue on the Executive Committee as Immediate Past Chairman.

Spring 2011 Meeting Report Page Three

2011—2012 Officers & Board of Directors

Chairman Robert E. Alger, The Lane Construction Corp.

Vice Chairman Patrick MacLeamy, HOK Group.

Treasurer Steven T. Halverson, The Haskell Company

Past Chairman Linda Figg, Figg Engineering Group

Joseph D. Adams, MWH Constructors *

Joseph M. Cibor, Fugro Consultants, Inc. Richard D. Fox, CDM

William B. Fraser, Carlson Group Thomas F. Gilbane, Jr., Gilbane Building Company

Donald F. Greenwood, Burns & McDonnell Thomas F. Gunkel, Mortenson Construction *

Bruce E. Grewcock, Peter Kiewit Sons’ Inc. Henry J. Massman, Massman Construction, Inc.*

Edward McSpedon, HNTB Corp. * A. Ross Myers, American Infrastructure

Patricia A. Rodgers, Rodgers Builders Inc. Bud Wendorf, Sargent & Lundy LLC

* Members newly-elected during the Spring Meeting.

CIRT conferences provide a place where members can deal ex-clusively with other chief executives in a setting that is conducive to the exchange of timely information while being relaxed enough to build personal contacts. We were very pleased to have the following first-time attendees and guests join us:

New Members & Guests

New Members

Michael D. Flowers, P.E., President & CEO American Bridge Company

M. James Gorrie, President Brasfield & Gorrie, LLC

Mark Mizrahi, President & CEO EnLink GeoEnergy Services Inc.

Jeff Wenaas, President & CEO Hensel Phelps Construction Company

Raymond Daddazio, President & CEO Weidlinger Associates, Inc.

David S. Zachry, President & CEO Zachry Construction Corp.

Bob Alger, CIRT’s newly-elected Chairman (right), is pictured with CIRT President Mark

Casso and Linda Figg, who will serve as Immediate Past Chairman.

SAVE THE DATE Fall Conference

November 7—9, 2011

The Ritz-Carlton Naples, FL

Member2Member

CIRT 8115 Old Dominion Dr. Suite 210 McLean, VA 22102 202-466-6777 Mark Casso: mcasso@cirt.org Jane Bonvillain: jane@cirt.org www.cirt.org

Congressman Dave Camp (R-4-MI) pictured with CIRT member

John Rakolta (Walbridge Aldinger Inc.), spoke briefly to the members

during the dinner regarding tax issues.

CIRT members Len Martling (The Weitz Co.); Greg Cosko (Hathaway Dinwiddie Construction);

and Craig Davis (Performance Contracting Group) enjoy the social time.

Long time members, Jeff Levy (RailWorks Corp.) and Tom Gilbane (Gilbane Building Company) take a moment to indulge the photographer.

Freshman Congressman Larry Buschon (R-8-IN) joined CIRT member Chris

Traylor (Traylor Bros.) as his guest for dinner.

Rich Weeks (Weeks Marine, Inc) and Paul Franzen

(Barnard Construction Co., Inc.)

L to R: Jeff Wenaas has been named CEO & President of Hensel Phelps Construction and succeeds Jerry Morgensen, Chairman, as the new representative to CIRT. Jeff & Jerry are

pictured with Dan Walsh (The Walsh Group).

Joe Adams (MWH Constructors, Inc.) and Mike Traylor (Traylor Bros.).

Dan Clifton, head of policy re-search for Strategas, provides an update to the CIRT Board on the latest political landscape.