The Alaska Contractor: Spring...

Associated GeneralContractors of Alaska

8005 Schoon St.Anchorage, AK 99518

(907) 561-5354Fax: (907) 562-6118

www.agcak.org

Editorial BoardSandra BartorilloDick CattanachMargaret Empie

Margie GoodmanSusan Harrington

Mary KillorinVicki Schneibel

Lyn Whitley

8537 Corbin Dr.Anchorage, AK 99507

(907) 562-9300Fax: (907) 562-9311

Toll Free: 866-562-9300www.aqppublishing.com

PublisherRobert R. Ulin

EditorSusan Harrington

Publication DesignerDiane O’Neill

Graphic ArtistsKim Lanier

Gloria ScheinRandy Yost

VP SalesChris A. Kersbergen

Project Sales ManagerClem E. Mewmaw

Spring 2005 THE ALASKA CONTRACTOR |3

The Alaska

S P R I N G 2 0 0 5The Official Publication of the Associated General Contractors of Alaska

DEPARTMENTS

4 Winning Bids & Construction Activity

6 President’s Message by Terry FikeOwners, Contractors Share Common Concerns

8 Executive Director’s Message by Dick CattanachProposed Legislation Addresses Workers’ Compensation Reform

10 WorkSafe by Steve MihalikTesting Your Seasonal Employees For Drugs

14 Safety Report by Chris RossSafety Certification Benefits Everyone

18 Contractors and the Law by Robert J. DicksonState Offers First Look At Proposed Design-Build Procurement Regulations

22 Education Report by Vicki SchneibelCurrent Update

24 Banking & Contractors by Bill InschoUnique Finance Options For Alaska Business

26 Pacific Legal Foundation by Peter G. FusselmanFederal Environmental Regulators Face Increased Legal Srutiny

53 18th Annual AGC Invitation Golf Scramble

FEATURES

12 GMG General Inc. by Susan Harrington

16 D & L Construction Company Inc. by Susan Harrington

20 Allied Building Products Corporation by Susan Harrington

30 Construction In Alaska’s Oil Patch – Part II by Larry J. Houle

40 Industrial Update Roads & Ports

42 Fairbanks In The Midst Of Unprecedented Construction by Patricia Liles

COVER PHOTO: COURTESY OF CONOCOPHILLIPS © JUDY PATRICK

T A B L E O F C O N T E N T S

4 | THE ALASKA CONTRACTOR Spring 2005

ARCTIC & WESTERN

BARROW MEMBRANE BIOREACTORSYSTEM

$1,340,716 Zenon

BETHEL READINESS CENTER SITEPREPARATION

$1,752,828 Bristol Environmental & Engineering

RED DEVIL SNOW REMOVALEQUIPMENT BLDG

$1,862,140 D & L Construction Co.

SAND POINT HEALTH CLINIC $4,586,000 Paug-Vik

SAND POINT BREAKWATER/DREDGING$10,905,240

Western Marine Construction

BETHEL REGIONAL HIGH SCHOOLDEFERRED MAINTENANCE

$11,907,000 Alaska Mechanical

INTERIOR

FBKS TANANA VALLEY RR TRAINHOUSE/MUSEUM

$1,630,000 Ghemm Co. Inc.

EUREKA/RAMPART ROAD PHS I$2,996,656

Wilder Construction Company

NORTH POLE STILLMEYERWATER/STREET IMPROVEMENTS

$3,386,325 Exclusive


SOUTHCENTRAL

ANCH ARRC PASSENGER SERVICECAR REMODEL

$1,120,768 Consolidated Contracting &

Engineering

ANCH AIA LAKE HOOD LAKESHORE/AIRCRAFT DR.

$1,419,589 Wilder Construction Company

ANCH HARTZELL ROAD EXTENTION$1,507,627

Alaska Construction & Paving

ANCH ASD EMERGENCYPREPAREDNESS PHS 1

$1,798,222 CYS Management Services Inc.

VALDEZ SMALL BOAT HARBORFLOATS F/G$2,217,530

Harris Sand & Gravel

ANCH RESIDENTAL SOUNDINSULATION PHASE IV

$3,100,381 Koch Corp.

ANCH HIGH TOWER ILLUMINATIONMAST PHS 11

$4,948,870 Swanson General Inc.

SOUTHEAST

WRANGELL AIRPORT ACCESS RDREALIGNMENT

$2,734,694 Southeast Road Builders

PETERSBURG WATER TREATMENTPLANT UPGRADES PHS I

$3,402,000 McGraw Custom Construction

JUNEAU FLOYD DRYDEN MSRENOVATIONS PHS II

$3,582,814 North Pacific Erectors

JUNEAU GLACIER HWY/TRAILHEAD$9,966,670

Secon


PRESIDENT’S MESSAGE

s a general contractor, I’ve been curious as towhether or not owners share the same concerns ascontractors, or whether they have a completely

different perspective on what issues are important to theconstruction process.

FMI Corporation recently released its Fifth Annual Survey of Owners and the findings are very interesting.Construction owners from both the private sector and thepublic sector were surveyed on issues such as scheduling,costs, phases of construction, communication and collabo-ration, and ethical practices.

In reading through the survey, it became apparent thatowners were facing the same dilemmas as contractors.Perhaps the most interesting item to be gleaned from thesurvey is one that contractors have been discussing foryears. Owners are finding that failure to focus more on theup-front planning and pre-design phase can lead to dis-putes and cost overruns.

From the owners’ perspective, cost overruns are caused primarily by:

• Incomplete drawings• Poor preplanning• Escalating cost of materials• Lack of timely decisions by the owner• Excessive change orders

When asked why owners did not spend more time onthe pre-design phase, 21 percent answered they did spenda lot of time in the pre-design phase, but failed to create athorough project definition. A lack of in-house expertise inthe areas of design, contracting and construction means theowner has fewer and less-qualified people to oversee thedesign phase. This lack of oversight appears to lead to theowners’conclusion that incomplete drawings and construc-tion documents are a significant cause of cost overruns.

More than 70 percent of respondents say they haveexperienced a decline in the quality of design drawings.The

suitability of as-built drawings was considered less thangood by over 46 percent of the owners. This could be adirect result of the quality of the initial design documents.

More than 50 percent of owners agreed that constructiondocuments presented to the construction team still have“significant information needed.” One owner noted that the“quality of design documents has declined to the pointwhere subcontractors, such as electrical and mechanical, areactually completing the design through the shop drawings.”Nearly 60 percent of respondents say having subs completethe design increases miscommunications and delays.

So what do owners want? Among other things, theywant better communication, collaboration, and coordina-tion with construction managers, architects, engineers andcontractors. They also want relationships built on trust andsound ethical practices, according to Dennis Doran, authorof the survey. In addition, owners continue to struggle withcommunication and collaboration issues. More effectivecommunication was rated as the top change that will mostsignificantly contribute to improving the quality of the proj-ect delivery process.

The top five practices owners identified that couldimprove communication and collaboration are:

• Provide a clear contact for decisions and approvals• Openly share project information• Assemble the project team early and meet frequently• Meet with service providers to share mission and

goals for the project• Delegate communication and collaboration responsi-

bility to the project manager or construction manager

With staff cutbacks by owners, construction managers andoccasionally A/E firms are hired to oversee the constructionproject. Forty percent of owners use project managers consis-tently, and 40 percent sometimes do. Mostly, constructionmanagers are brought into the construction process at thedesign or pre-design phase, and are usually expected to pro-

Owners, ContractorsShare Common Concerns

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TERRY FIKE


vide management of the project frombeginning to end – including schedul-ing, A/E design and construction.

Nearly 80 percent of owners believeproject collaboration software can helpavoid disputes and miscommunica-tions, but about 65 percent still do notmandate its use on their projects.

Ultimately, owners concluded thatthe top three responsibilities theycould carry out better to achieve proj-ect success are:

• Make timely decisions• Engage in more effective

communications• Define the project scope earlier

in the project and communicateclearly to the project team whatthat scope is

Since change in project scope is theleading cause for change orders,improving project planning is one wayto reduce change orders. Owners alsonoted that unrealistic expectations increating project schedules and timelinescan affect the quality of the project.

This survey of owners duplicatesthe concerns of most contractors andsubcontractors. As the author pointsout, “There is a frustrating aspect ofthe results of this survey – the sametop owner concerns resurface eachyear, but the leadership or sense ofurgency needed to change the statusquo remains elusive.”

With today’s practice of contractorsnot being brought into the pictureuntil the project is out to bid, itappears that it is up to the owners toinsist their design teams provide ade-quate design documents, hire quali-fied construction managementpersonnel, and develop effective linesof communication – within theirorganization and with contractors.

The survey should cause the entireindustry to reflect on how they canhelp solve some of the problems out-lined above. The owners recognizethat they must play a major role inaddressing the problems, but all sec-tors of the industry have a part to play.If you would like to receive a copy ofthe survey, contact Phil Warner [email protected].


VER THE PAST TWO YEARS, workers’compensation pre-miums have increased by an average of 30 percent.For many employers this item represents their

fastest growing cost category. Premium costs, however, rep-resent only the visible aspect of the problem, and do notreveal the numerous components that drive those increas-es. For example:

� Medical Benefits represented 51.6 percent of totalbenefits paid in 2002. In 1994 medical benefits repre-sented 46.3 percent of total benefits paid. Medicalbenefits are the fastest growing component of theworkers’ compensation system.

� Reemployment benefits in 2002 were $15.7 milliondollars, almost triple the amount spent in 1994.

� The number of injuries and/or illness reported to theWorkers’Compensation Division has declined almost20 percent since 1994. Lost time cases representapproximately one third of all claims.

� The number of claims filed with the Workers’Compensation Division has increased by almost 70percent since 1994.

� The number of injuries controverted has declined by10 percent since 1994.

� The average cost per claim has doubled since 1994 to$9,086.

� The number of fatalities declined by 50 percentsince 1984.

� Employers receiving their insurance from theassigned risk pool are assessed a 25 percent premi-um. Unfortunately, this premium is insignificant tocover all the losses incurred by the pool. By statute,those excess losses are covered by all employers inthe normal insurance market.

� The largest insurance carrier in Alaska writes more thanfive times the workers’ compensation insurance of thenext largest carrier.

The workers’ compensation system in Alaska can thenbe summarized as a system in which the number of injuries is declining yet the costs continue their inex-orable march higher.

An attempt to address the underlying problems failedduring the last legislative session, and another attempt iscurrently underway. In the past, an Ad Hoc Committee ofmanagement and labor representatives worked on sys-tem reform. Put in place almost 25 years ago, the intentof the ad hoc process is to remove system reform fromthe political process. A grassroots effort of qualifiedemployer and employee representatives has been suc-cessful since 1981.

This year, the administration determined that the crisiswas so severe that it was appropriate to revert to thepolitical system that existed prior to 1981. That strategymay be appropriate. Unfortunately, the first attempt atreform was replete with significant problems that willhave to be addressed – or the bill is doomed. The issue issignificant, and all employers should be involved. TheAGC Legislative Committee is following the bill and willattempt to assure that the interests of the industry areprotected. But to make sure that the interests of your firmare addressed, you either need to testify at the legislativehearings or attend the AGC Legislative Committeemeetings. The issues are too important for firms toassume others are protecting their interests.

DICK CATTANACH

Executive Director

EXECUTIVE DIRECTOR’S MESSAGE

Proposed LegislationAddresses Workers’Compensation Reform

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The issue is significant,and all employers should be involved.

S CONTRACTORS, you probablyspent the past several monthsresponding to requests for

proposals, ordering materials andworking on staffing schedules. Nowyou should shift your attention towhat worked with your seasonalemployees last year – and what didn’t– and look for ways to streamline yourprocess to your advantage.

From a drug-testing perspective,you should make sure prospectiveemployees know that they MUST passa drug test to get the job. Prospectiveemployees who consciously decide tonot give up their drug use whileapplying for work make a dangerouschoice. Don’t let that choice cost you.WorkSafe has Drug-Free Workplace

signage that puts prospective em-ployees on notice that they must test drug free. Place these signs where applicants will see them so youdo not waste time and money on pos-itive tests.

The construction industry nation-wide experiences a positive rate of

20.1 percent; in Alaska our historicaltesting averages 25 percent per testcycle, which is why so many contrac-tors adopt a drug-testing program.This protective action helps insulatecontractors from costly accidents and mistakes. There is a down side for contractors who do not test fordrugs. They may end up with evenmore seasonal employees who usedrugs, and that could cost their safetyperformance records as well as thebottom line.

For those of you who conduct yourown instant tests, now is the time to check the expiration date and order more, if necessary. For those of you with work in rural Alaska,now is the time to let WorkSafe know where you will be working so we can make sure our rural collec-tion sites have sufficient supplies. Forthose of you who have hired newsupervisors, now is the time to trainthem to recognize the signs andsymptoms of drug use.

If you require pre-hire physicals,now is the time to review your jobrequirements to make sure they stillmeet the job conditions and that your occupational health providerknows the physical job require-ments. Drug testing, plus an up-to-date and active occupational-healthprogram, reduce workers’ compen-sation claims and enhance your bot-tom line.

As we prepare for the busy summerseason, consider WorkSafe your part-ner in success. We’re here to makeyour hiring decisions and ongoingoperations more effective from thedrug testing point of view. Let usknow what we can do to assist.

STEPHEN A. MIHALIK is general manager for WorkSafe.


W O R K S A F EBy STEPHEN A. MIHALIK

Testing Your Seasonal Employees For Drugs

This protective action helps insulatecontractors fromcostly accidents and mistakes.

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OB WEINGART grew GMG GeneralInc. from a $300,000-a-year pavingcontractor to a multi-faceted busi-

ness with $6.5 million in annual revenues, in15 years, managing conservatively as hedeveloped working relationships with majorcontractors and suppliers, created a familyatmosphere for employees, reached newplateaus, and acquired bread-and-buttercontracts, which have consistently renewed.Employees and satisfied customers of GMGshare the company’s success.

Asphalt is GMG’s mainstay. While thecompany does bid many projects, much of itsbusiness comes directly from contractors thatrequest services. Weingart attributes GMGbeing selected for jobs to three key factors –pricing, scheduling and reliability.

“We offer a fair price and are competitivein the market,” he said. “Scheduling-wise,we will always meet their schedule; and wepride ourselves in getting through the job suc-cessfully – their success is our success.”

Weingart avoids friction by working throughharmony. “There is a lot of competition in paving here, helping contractors complete their projects byworking to solve problems – not be part of theproblem – is a successful formula. We get lots ofreferrals that way.”

Asphalt division jobs include: patch and repair,driveways, parking lots, subdivisions and high-ways. Commercial, residential and highway projects comprise GMG’s workload, which is not all in asphalt paving. The company has threeother divisions: concrete, commercial landscaping,and snow removal.

Concrete jobs vary among foundations, curbsand gutters, sidewalks, and the increasingly popu-lar work in specialized, stamped and colored con-crete. The company performs commerciallandscaping for utility companies that tear up yardswhen laying lines and making repairs.

Commercial snow removal for BP, ACS and theMunicipality of Anchorage helps sustain some ofGMG’s workforce through the winter. The compa-ny employs an average of 60 people – 20 per-manent and 40 seasonal. The asphalt, concrete andlandscaping divisions are active from May 15 toOctober 15. Weingart employs three people in theoffice, and three people in the shop, year round. Hehas six estimators in the summer; and beefs up theconstruction crew, some of whom work snowremoval in the winter.

“I’ve got the greatest comptroller in the world,”he said. “Cori Williams has been with the companyeight years. She keeps us in line. I know at any pointin time where we are as a company, financially.”

Another key employee Weingart speaks highly ofis Richard Hill, lead mechanic, who heads the shop.

“In six years, the shop has never missed a singleday of down time. It is very important that every-thing is operational every day – with a large inven-tory of specialized equipment, if something goesdown things can come to a halt in a hurry.”

Weingart holds weekly meetings with all theestimators, and sets percentage goals on an on-going basis. He uses internal competition for every-one to get the most out of their jobs, and thecompany benefits.

“We always know the work will be there – wehave some of the best people here who can find thework, and I micro-manage all my people,” he said.“I’m the oldest of seven – my father was involvedin an industrial accident when I was 10 years old –that’s when I started learning leadership skills. It’sa family atmosphere here, and I make it a point toknow something about all my employees. They aremy extended family in Alaska. I grew up in westernMontana and learned a good work ethic at a veryyoung age, so I look for that in my employees.”

In some ways, Anchorage reminds Weingart ofhis boyhood home in St. Ignatius, north ofMissoula, with mountains at his back. He said it isthe same here, mountains at his back.

GMG General Inc.

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Weingart moved to Alaska in1982. He put himself through collegeto be a high school biology teacher,and was looking for a teaching jobafter college. He was offered a job inasphalt paving because of his back-ground in mathematics involving sci-ence and biology.

“I couldn’t even spell asphalt,” hesaid. “But, I took the job.”

When the Alaska economy took adownturn, the company was going to move him to California. He decidedto stay.

“Alaska was my home by then.”Weingart started out as a paving

contractor, with one partner. He hadthe foresight to organize the companyas a general contractor to allow forfuture expansion. That was in 1989.Another partner joined up a year later.Gradually, over 12 years, the two part-ners left and now he is the sole owner.GMG went from a small upstart com-pany in a failing economy to where itis today, a successful fixture in Alaska’sconstruction industry.

“I learned early on scheduling wasthe key to satisfying customers,”Weingart said. “These jobs have suchshort schedules. We work hard to knowthe what, when and where, and spendthe time working out the schedules.”

One tool that has helped is MasterBuilder software, which Weingartstarted using eight years ago. “It wasmore than we needed, but looking tothe future, and where I was taking thecompany, it was a great fit.”

Another means of success for GMGis Weingart’s style. “My approach isvery conservative, because of the 80s. Iwatched the company I worked fortake the punches – I now see themcoming and I know when to duck.”

Although the company has suc-cessfully completed projects inSeward, Homer, Glennallen, and as far north as Denali Park, most of itswork is in Anchorage and the Valley.“We concentrate on the Anchoragemarket because it has been our homefor so long; but we have been pavingin the Valley for some time now, realiz-ing it was going to boom there, and ithas – we look for that market to con-tinue to grow.”

Prices are another area of growth,with across the board increases overthe past year. Weingart says asphaltprices went up because of oil, concreteis up 10 percent; and Anchorage lost aFairbanks-based, asphalt-oil supplier,which might result in a supply-and-demand increase since now there isonly one source.

He wonders where the breakingpoint will be with increasing prices –when projects will be so cost prohibitivethat the next downturn will come about.

“The Alaska economy has beensteadily going up for some time now,without slowing down. One of thethings we do – that we’ll always do –is secure what I call our bread-and-butter, contracts to pave and patchwhen the utilities dig up the streets.That goes back to the days of takingpunches. I maintain those contracts,because if things were to get bad,that type of work always continues forus to do.”

AGC of Alaska is another essentialelement of endurance for GMG.“We’ve been AGC members for atleast 10 years,”Weingart said. “We runour insurance through them. We gath-er knowledge from other contractors;and the AGC gives us an idea of

what’s coming up, what’s happening,and who the players are.”

When Weingart isn’t working, hespends most of his time with his family. He is raising two daughters,and they have both worked summersin the business. He also gives back to the community. “I support a lot of Anchorage Police Department pro-grams and youth hockey,” he said.

“I sponsor a musher who is pro-gressing to get into the Iditarod, and I was a sponsor to Iron Dog riders. Ilike supporting things that makeAlaska Alaska.”

And that includes his work. Thecompany takes part in buildingAlaska. Some of the big projectsinclude the new Lowe’s on O’Malleyand in Wasilla, the Abbott RoadCarr’s-Safeway, the Abbott Road FredMeyer, the Wrangell St. Elias Visitor’sCenter in Glennallen, Shoreline Drivein Seward, Byer’s Lake campground,and numerous Valley subdivisions.

As for plans for the future, Weingartwants to stay on each plateau hereaches, until he’s ready to climb tothe next one.

“It has taken me 16 years to consid-er myself at the top, or near the top, ofmy game.”

Asphalt Paving is GMG’s mainstay.

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S A F E T Y R E P O R T

YOU ARE INTERESTED in taking thenext step towards safety with your com-pany, it’s time to consider gettinginvolved with the Safety TrainedSupervisor (STS) program. The STS cer-tification program is a nationally recog-nized program that recognizes theaccomplishments of supervisors througha process of application and testing.

The typical certified STS helps anemployer implement safety programs atthe worker level through supervisory,safety committee or similar safety andhealth leadership roles. Safety tasksoften include monitoring for job haz-ards, helping ensure regulatory compli-ance, training employees in safetypractices, performing safety record-keeping tasks, coordinating correctionsfor safety problems within or amongwork groups, and communicating withsafety specialists or management.Thereare currently 61 Safety TrainedSupervisors registered in Alaska, andthe ranks are growing every week.

The STS safety responsibility is a part-time responsibility, usually less thanone-third of the total job duties. If safetyresponsibilities involve a greater portionof job duties, the role is more likely to bethat of a safety technician/technologistor safety professional.

The STS certification is intended forindividuals who:

• Are managers at all levels • Are first line supervisors of work

groups or organization units• Have a safety responsibility for a

work group that is part of otherwork duties

Safety Trained Supervisors are notsafety specialists or safety practition-

ers. Typical candidates have a safetyresponsibility that is adjunct, collateralor ancillary to their job duties. Theirmain job duties are in a craft or trade,in leadership, supervision or manage-ment, or in a technical specialty.

The STS certification establishes a minimum competency in general safetypractices. To achieve the certification,candidates must meet minimum safetytraining and work experience and dem-onstrate knowledge of safety funda-mentals and standards by examination.Those holding the STS certificationmust renew it annually and meet recer-tification requirements every five years.

To gain eligibility for a SafetyTrained Supervisor examination, youmust be of good moral character andmeet the following requirements:

1. Have two years of experience inany industry or in the industryrelated to the version of the STSexamination to be taken.

2. Have one year of experience as asupervisor or safety leader of awork group. Examples are manag-er, foreman, crew chief, superin-tendent or member of a safetycommittee.This experience can beconcurrent with requirement No. 1.

2a. If you are training to become asupervisor or safety leader anddo not have the one year ofexperience in such roles, you cansubstitute two additional years ofindustry experience in require-ment No. 1.

3. Have completed 30 hours of formalsafety training through a singlecourse or multiple training courses.

To achieve the STS certification, you

must pass a Safety Trained Supervisorexamination.The examination contains100 multiple-choice questions andcandidates have two hours to completeit. The STS examination is offered bycomputer at over 200 Prometric TestingCenter locations in North Americaevery business day. Alaskans can takethe test in Anchorage and Fairbanks.

Additionally, AGC/NANA TrainingSystems offers Examination Prepara-tion Workshops to assist candidatesprepare for the STS exam. Our STSpreparation workshop is a two-dayclassroom session where we definethe scope of the exam, give examplesof test questions and materialsencountered on the test, review basicmath skills and basic calculator func-tions, discuss good test-taking strate-gies, and provide a very fast-pacedoverview of the subjects referenced inthe examination blueprints.

Participants should review and com-plete the AGC/NANA Training SystemsSTS Study Guide prior to the workshop.This study guide is based on the STSExamination Blueprint provided by theCouncil on Certification of Health,Environmental and Safety Technolo-gists, known as CCHEST.The test spec-ifications and test blueprint give thecandidate the emphasis and study areasthat will be tested.

The study materials referenced inthis guide are available from AGC/Nana Training Systems, or the NationalCouncil on Construction Educationand Research, referred to as NCCER,and include the Field Safety and SafetyTechnology textbooks.

The pace of this workshop will beextremely fast – not at all in-depth – togive participants an expectation of the

By CHRIS ROSS

Safety Certification Benefits Everyone

If


body of knowledge required. It isanticipated that each participant willdevelop their own study plan, basedon their particular strengths andweaknesses. Workshop participantswill receive a calculator approved byCCHEST for use in the exam, andpractice some math in the workshop.

Supervisors, managers, safety com-mittee members, foremen, crew chiefs,and other work group leaders playvery important roles in making worksafe. Safe work practices add to pro-ductivity and profit.

Benefits for Employers and OwnersThe overall benefits to employers andowners of the STS certification pro-gram may include any of the following:

• Evaluation of its employees’fundamental safety knowledge

• Demonstrated competency of itsemployees by examination

• Increased safety awarenessamong employees

• Improved safety culture• Reduced workers’ compensation

claims and reduced insurancepremiums

• Reduced need for safety profes-sionals on smaller projects orassignments

• Improved productivity from bet-ter communication among andhigher confidence within workgroups

• Higher profits from safe work• Recognition by having employ-

ees who hold a nationallyaccredited credential

Benefits for EmployeesBenefits for employees may includeany of the following:

• Demonstrated knowledge offundamental safety practices

• Opportunities for increased jobresponsibilities or employment

• Increased value to an employer• Recognition for safety leadership

from an employer or other employees• Increased confidence when deal-

ing with safety and health matters(Continued on page 54)


OR ALL THINGS CONSTRUCTION – look to theKenai Peninsula’s Smith brothers – Larryand Dan. They are lifelong Alaskans – born

in Seward and raised in Cooper Landing. Thebrothers started D & L Construction Company in1982, and incorporated the business four yearslater. According to Larry, the company does justabout everything there is that’s construction.

That everything includes roads, bridges, dockwork, pile driving and felling lumber. D & L useshydro-axes for clearing and maintenance work thecompany performs for the Alaska Department ofTransportation & Public Facilities, and for utilitycompanies throughout Southcentral Alaska.

Like many Alaska contractors that have enduredthe fluctuating economy, D & L has worked inmany areas of the state doing a variety of construc-tion work. They have worked as far north asLivengood, as far east as Northway, and down theYukon River to Kaltag, where they were the subcon-tractor for construction work at the airport there.

The business idea came after some experience inthe field. Larry joined the Marine Corps after highschool and spent time in San Diego and Yokosuka,Japan. Dan joined Local 302, at the beginning ofthe pipeline and worked as an oiler on the NorthSlope; he also worked Local 798, the pipeliners outof Tulsa, Oklahoma.

After Larry returned from the Marines, heworked as a carpenter for Modern Constructionfrom Fairbanks, buildingschools in Tuluksak,Atmauthluak and Nuna-pitchuk near Bethel. Danworked for Kodiak Oil-field Haulers on the NorthSlope. They both endedup with Chris Berg inSeward by 1981. The following year, D & LConstruction Companycame into existence.

The more work thecompany has, the morepeople can be employed.Now there are 15 em-ployees, including thosewho work at the KenaiPeninsula Solid WasteTransfer Stations. Typically,the company employed six to eight people, some-

times up to 40, depending on the project. Two largejobs, the Church Road project near Wasilla in 1998,and the Pedro Bay Bridge in 2001, required a largernumber of employees. Pedro Bay is an area that maysee more construction in the not too distant future.

D & L built the Pedro Bay Bridge for the State ofAlaska, DOT&PF, in the village of Pedro Bay on thenorth shore of Lake Iliamna, near where NorthernDynasty will be setting up shop for the massivePebble Copper Mine. “The village of Pedro Bay has white sandy beaches, and the village council wasgreat to work with,” Larry said. “Interestingly, thebridge sections were barged to Whittier, railed toPortage, trucked to Homer, barged to Willaimsport,trucked to Pile Bay and barged to Pedro Bay.”

The Smith brothers have extensive experiencewith chainsaws. Larry said they’ve been runningchainsaws since they were knee-high, and clearinghas represented year-round work that has alwaysneeded done.

“We’re hard workers – we were raised to work inthe woods, that’s tough work,” Dan said. “Runningchainsaws you learn to work hard. Our dad had asmall sawmill when we were growing up, and welearned no matter what the weather conditions are,to get the job done. To be successful in the con-struction industry in Alaska you have to be diverse– and tough.”

Clearing is something they always do – the com-pany was most recently bidding a clearing contract

D & L Construction Company Inc.

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DOT&PF Cordova Airport clearing, 1999

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for the State of Alaska, DOT&PF, forthe ANC South Airpark Taxiway at TedStevens Anchorage InternationalAirport. In the early 1990s, the compa-ny contract-logged for Circle DE Pacificout of Homer, the Chugach Alaskasawmill in Seward, and for TamCo, aveneer mill out of Coos Bay, Oregon.

In 1988 the company began work-ing with landfills for the KenaiPeninsula Borough, and now operatesand hauls solid waste from four trans-fer stations with 10 trailers in Nikiski,Kenai, Sterling and Seward.

Like many well-rounded Alaskancontractors, they love to dig in the dirt, and have worked on road, street,water and sewer projects over theyears. They have built boat ramps onthe Kenai River at Cooper Landingand Deep Creek. This spring, they are about to finish up a project re-constructing 19 campsites and trail-heads along the Swanson River/Swan Lake Road on the KenaiNational Wildlife Refuge for the U.S.Fish & Wildlife Service.

“We are always looking for work,”Larry said.

They will be bidding on the construc-tion of a new snow removal equipmentbuilding at the Red Devil Airport on theKuskokwim River. D & L has alreadydone work at a couple of airports in ruralAlaska, and knows the drill. “Bush workis a lot different because of the logistics

of getting your men and materials outthere,” Larry said.

D & L has belonged to the AGC ofAlaska since 1983, almost as long asthey have been in business. Larry saysthey have found membership in theorganization beneficial. Dan says theyuse AGC to look at jobs and otherconstruction-related matters.

“They try to get things straightenedout for contractors,” Dan said.

The company also belongs to theKenai Peninsula Builders Associationand the Alaska State Home BuildingAssociation – Larry serves on theboard of directors for both organiza-tions. D & L contributes in other waysto the communities they belong to –

they are a soft touch to any charitythat asks for money. Annual charitiessupported include Special Olympicsand Kenai Firefighters.

These days, Larry said the companymostly does public sector work withthe state and boroughs – he hopesgovernment keeps spending money inthe construction sector.

Originally, the brothers decidedthey’d start their own company to getrich. “We didn’t get rich,” Larry said,“but we’re still in business. We builtsome houses – we haul trash, cutbrush, drive pilings – we’re versatile.”

Brother and business partner Danagrees.

“Working construction in Alaska, youhave to be real diverse, because even ifyou bid on a job, once you get there thewhole scope of the project can change,”he said. “Through our 20-some yearswe’ve seen a lot of big and small con-tractors come and go. Some last foryears, and some only last for one job.”

D & L added another facet to thecompany recently, when it became anauthorized dealer for WedgCor steelbuildings. D & L has brokered,arranged shipping, and in someinstances built, several steel buildingsover the last couple of years fromWedgCor, a company headquarteredin North Dakota. Just one more facetthat gives D & L staying power in theconstruction industry in Alaska.

“For the future? We’re looking forthe gas line,” Dan said, “and develop-ing some of our natural resources.”

DOT&PF Pedro Bay Bridge project, 2001

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DOT&PF Whittier Access equipment storage building, 2002

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HE ALASKA DEPARTMENTS OF

ADMINISTRATION AND TRANSPOR-TATION are promulgating new

regulations to cover the procurementof design-build construction con-tracts. The proposed regulations werepublished on Feb. 3, and the commentperiod extended to Feb. 28, 2005. As ofearly March, it was not clear when thestate will officially promulgate thesenew regulations, what form they willfinally take, and when they willbecome effective.

The regulations do not limit howthe “design-build team”is structured, but allow aconstruction contractorwithout in-house designresources to propose on adesign-build contract pro-vided that qualified andlicensed design profes-sionals are “assigned orsub-contracted” to the con-struction contractor.

The regulation refers to “the design-build team,” but does not define thatterm. The new regulation also makesclear that even though the design pro-fessional may not directly contract withthe state, the designer’s professionalduty of care will still run to the state.

Much of the new regulations con-tain what would be expected, thougha few items are noteworthy. The regu-lations would permit the state toinquire into the proposer’s “presentwork load” to determine whether theproposer had the capacity to accom-plish the work in the required time.

Also, the statutory Alaska bidderand offerer preferences will applyunless precluded by federal fundingrequirements. The RFP must include

the “performance criteria,” whichwould include the capacity, durability,production standards, and ingress/egress requirements, and would beexpressed in “performance orienteddrawings and specifications.” The RFPwill also include the criteria for evaluat-ing the proposals and the relativeweight of each of the evaluation factors.

The proposal will have to includedrawings, specifications and otherrequired submittals to describe thedesign submitted. The state may eitherspecify a required completion date or

may include contract time as one of thefactors to be proposed upon. The statewill also require the design-builder to“warrant the design,” similar to adesigner’s professional obligation to aclient-owner. But it will be a newundertaking for contractors who havebeen engaged in strictly constructionactivities.

The proposal will have to identifythe individuals or firms that will beresponsible for each design discipline.The design-builder will not be able tochange those firms without approvalof the agency. The agency may use“any basis” for making the award,though three are suggested: bestvalue, two-step (requests for qualifica-tions leading to a short list of qualifiedfirms and then an RFP), and low bid.

The evaluation process will follow theprocedure already set out in the pro-curement regulations for competitivesealed proposals, not the procedurefor proposals for architect, engineer orland surveying services. The implica-tion is that the evaluation will bebased on more objective factors thanthose which are taken into account inprocuring architect/engineer designservices under existing procedures.

Finally, two provisions underscorethe delicate balance between main-taining a level playing field for all

participants in a fair com-petition and the inherent flexibility in a design-buildarrangement between ownerand contractor.

During the evaluation, theagency is permitted to “nego-tiate minor changes with theselected firm for the purposeof clarifying the design criteria

and work to be done, provided thatthe negotiated changes do not affectthe ranking of the proposals based ontheir adjusted scores.”

The regulations go on to providethat “a design-build contract may beconditional upon subsequent refine-ments in scope and price, and maypermit the agency to make changes inthe scope of the project without inval-idating a design-build contract.”Theseclauses could easily be the source ofdisputes among disappointed pro-posers, the state, and the successfulcontractor.

ROBERT J. (BOB) DICKSON is a partner ofthe Anchorage law firm Atkinson,Conway & Gagnon, Inc.

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State Offers First Look At Proposed Design-Build Procurement Regulations

CONTRACTORS & THE LAWBy ROBERT J. DICKSON

The regulation refers to “the design-build team,”butdoes not define that term.


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Allied Building Products Corporation

LLIED BUILDING PRODUCTS Anchoragebranch averaged more than $1 million in sales per employee last year. The

Anchorage branch employs just eight people; yetdid between $8 million and $9 million in businessin 2004 – with a mix of 65 percent commercial and35 percent residential. Its focus is on specialty subcontractors – roofing, siding, and insulation –with some exclusive lines of product.

Three of the larger projects the company suppliedmaterials for recently were the Department ofTransportation building in Fairbanks, installed byInterior Alaska Roofings; Concourse C at Ted StevensAnchorage International Airport, installed byConsolidated Enterprises; and the SoutheastAnchorage High School, installed by IndustrialRoofing.

“Allied is low profile,” Bruce Rogers, branch manager said. “We focus on those three groups ofspecialty subcontractors, and they know we’re here –but some of the generals don’t know what we carry.They need to know Allied specializes in roofing, sid-ing, waterproofing and insulation. We also have agrowing interior products division that specializes ingypsum, steel studs and track and accessories.”

Rogers has been in the business, and Alaska,since 1981. He started out in building materialssales after coming up from Michigan on vacationafter finishing college. “I fell in love with Alaska,”Rogers said. “I went home, packed up, and movedhere to stay.”

As branch manager, he is a company man andbelieves in Allied. “One thing great about this com-pany, as big as it is, each branch can develop their ownbusiness plan for the market they are in,” he said.

The company is big. Allied Building ProductsCorporation, based in New Jersey, did $1.2 billionin sales in 2004.The company is heavily into distrib-uting building materials, with a mission to supplyspecialty contractors.

The parent company, CRH plc, distributescement, concrete, aggregates and road asphalt. It isthe fifth largest such supplier in the world. In 1996,Allied was acquired by CRH, which is based inDublin, Ireland, through Oldcastle Inc., CRH’sNorth American holding company. CRH did $16.1billion in sales in 2004.

Allied expects excellence and gets involved atthe specification level during the design processwhenever possible. One side of the business workswith architects to drive specifications.

“Then we bid on projects, and follow through

with supplying the materials,” Rogers said. “Thereis a great effort made to maintain a close workingrelationship with the design community. Exposureand networking have proved successful in gettingthe word out about product lines. Also, manufac-turer representatives, whose lines we distribute,promote products at the architectural level whenthey come to town.”

Allied participates in industry events through the Associated General Contractors of Alaska,the Construction Specification Institute, theAmerican Institute of Architects, and like manyAGC members, belongs to other professional tradeorganizations as well.

The company shares AGC’s dedication toimproving construction industry professional stan-dards. Membership in the AGC is important forAllied – AGC is valued as the voice of the construc-tion industry in Alaska. The company looks to AGCwhen facing industry challenges.

The biggest challenge for this construction mate-rials supplier is the same challenge contractors areup against. “Price increases like I’ve never seen,”Rogers said, “in metal and anything made withpetroleum, including transportation costs. Freightcosts and material costs are up significantly.”

The company does some wholesale dis-tribution to lumberyards in the Bush, and in smaller Railbelt communities like Talkeetna.Allied also supplies certain products to HomeDepot and Lowe’s.

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Allied’s Anchorage staff

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Something Rogers sees as uniqueabout the Anchorage branch is, eventhough Allied is part of a huge nation-al company with its own in-housetransportation department, theAnchorage branch negotiates its ownfreight and transportation costs fromSeattle to Alaska.

Allied’s Anchorage branch employsa small number of people. They areexpected to turn out a pretty big vol-ume per person, which they have con-sistently done. There is just theoperations manager, one warehouse-men, one person in inside sales, two people in outside sales, an administra-tive manager, and an administrativeassistant. “We are a fairly lean and effi-cient operation,” Rogers said.

There is one small truck for localdeliveries. All full trailer deliveries arehired out or shipped from Seattle tothe docks, then direct to the job sites.

“Being without a fleet of trucks isunique to the Anchorage branch,”Rogers said. “In the Lower 48, Alliedhas a huge fleet.”

That fleet numbers more than 2,000cars, trucks, and tractor trailers for themore than 130 Allied branches fromcoast to coast. It wasn’t always so big.The company has grown over the years.

Allied’s roots go back to 1950,when it was a family-operated roofingand sheet metal fabrication business inNew Jersey. Allied first came to Alaskain 1985 when it purchasedBurkheimers, a company that had fivebranches – two each in Oregon andWashington state, and one in Alaska.Burkeheimers was the first acquisitionfor the company on the West Coast.

Then in 1987, Allied purchasedBuilding Products Supply and com-bined the two into one branch. Allied’sAnchorage branch grew from an oldwarehouse on Eighth Avenue behindAlaska Sales & Service to the presentlocation on the south side of town in1998, just down the road from theLongbranch Saloon.

Now there are 12 branches in theNorthwest.The Anchorage store is stillthe only location in Alaska. Rogersexpects to see Allied’s presence growalong with the Alaska economy. Thecompany has done quite a bit of busi-

ness in Fairbanks, and suppliedInterior military projects at FortWainwright, Eielson Air Force Baseand Fort Greely.

Usually, most of the company’sbusiness is in Anchorage and Fair-banks, but Allied will supply materialto any location in the state. Rogers saysAllied also supplies materials to theBush. Large projects in places such asBethel, Barrow and King Cove get

materials barged directly from Seattle.For all those projects that are supplied

out of the Anchorage branch, the com-pany’s corporate goal of building com-mitment and quality are taken seriouslyby the folks in the Anchorage branch.

Anchorage Branch Manager BruceRogers has a crew of million-dollaremployees who excel at supplyingAlaska contractors with roofing, siding,waterproofing and insulation products.


THIS POINT in the school year, here’s what we’veaccomplished and what we’ve been doing.

NCCER (As of Feb. 28)NCCER Contren curriculum is in 41 classrooms across thestate, all with certified teachers.

We have a total of 73 certified teachers with more coming.We have 220 students on the NCCER National Registry

to date, and more expected as the school year wraps up. There are 139 students who have earned a NCCER certificate.

We’ve proctored 54 NCCER Craft Skill Assessments sinceOctober of 2004, and that number will grow as we approachspring. We’ve proctored 21 NCCER pipeline assessments.

We’re recruiting some of the housing authorities to offer thecraft skill assessments for their crews or for potential employ-ees. We’re also talking to the Alaska Department of Labor onhow craft skill assessments could be used for their clients.

In addition to these activities, we’ve hosted three groupsof high school students through an Anchorage constructionsite. We hosted two different groups from Kuspuk SchoolDistrict through Unit Company’s Polaris School project. ThePolaris project is a remodel and an addition for theAnchorage School District.

Then we hosted an Anchorage charter school, HighlandTech High, through Polaris School, also. Unit Companyhas been very gracious about hosting the school groups!Thanks to Trent Larson and Jim Miller for their willing-ness to work with the schools!


Current Update

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E D U C A T I O N R E P O R TBy VICKI SCHNEIBEL

MAT,Training Director

EventsWe participated in the Ribbon-cutting Ceremony, viavideoconference (thanks to AT&T Alascom), for the DeltaCareer Advancement Center in Delta Junction on Jan. 14.

The new center is a 9,600 square-foot facility that ishome to the Construction Trades program, providing a 7,000square-foot workshop. It will also house the Wells FargoLibrary, a smart classroom, and a computer lab. Consortiumclasses are offered by the Tanana Valley Campus of theUniversity of Alaska Fairbanks, Delta Mine Training Center,Alaska Works Partnership, and the Delta/Greely SchoolDistrict. The Delta Junction Jr./Sr. High School is using theNCCER Contren construction curriculum, and AGC hascertified the instructor, Gary Hall.

We participated in the annual 2005 Career and TechnologyProfessional Development Conference Feb. 4-5, held at theKing Career Center in Anchorage. We conducted a workshopon Career Academies, using the AGC of America model.

We presented Build Up! to the Anchorage School Districtelementary counselors on Feb. 11. This was possible thanksto Roger Fiedler, assistant director communications, andKevin Hoyer, principal, of Kincaid Elementary School. We’rehoping to re-energize Build Up! in the Anchorage SchoolDistrict for next school year.

OtherI’m serving as a boardmember on the Tech PrepConsortium. Constructionis one of the two indus-tries being researchedfirst. Many of our mem-bers participated byreviewing parts of thecareer cluster knowledgeand skills identificationthat was done nationally.The effort is to track ormap what is going on inour state by industry and match that to what the schools aredoing. Should be interesting.


Kuspuk School District students visited the Polaris School project.

Unit Company Quality ControlManager Trent Larson (left) and Project Superintendent James Miller.

OUR BANKER: The keeper of yourmoney. The person who can sayyes or no to loaning money to

you. Yes, your banker is pretty impor-tant to your business.

Your banker can also help you inmore ways than you might realize.Bankers have access to loan programsthat the general public doesn’t bypartnering with organizations such asAlaska Industrial Development andExport Authority (AIDEA) andEvergreen Community Development.

These programs can sometimesoffer more favorable terms than com-mercial banks, like longer payoff peri-ods (term) and a lower installmentpayment structure. All you have to dois work with your local banker.

Here’s what the different organiza-tions can offer you and your business.

AIDEAAIDEA is a public corporation of theState of Alaska, created to encourageeconomic growth and diversification. Itdoes this by providing loan programsthat are only available through partner-ships with financial institutions, and byhelping to create jobs for Alaskansthrough these different programs.

Loan Participation ProgramAIDEA isn’t a direct lender, butthrough the Loan ParticipationProgram actually purchases part of aloan made by a bank for new or exist-ing projects, or for refinancing of anexisting loan.

The interest rate paid by the bor-rower for the portion of the loan that AIDEA purchases is often lowerthan the rate of the bank’s portion.That lower rate AIDEA portion alsogenerally has a longer term, whichmeans lower installment payments.

Borrowers can also choose betweenfixed and variable rates.

The financial institution that origi-nally makes the loan services theentire loan, meaning the borrowercontinues to work with his or her local banker.

Business & Export Loan GuaranteeThis guarantee applies to loans madeto small businesses for real property,tangible personal property, workingcapital and export transactions. AIDEAcan guarantee up to 80 percent of aloan originated by a financial institu-tion, but not more than $1 million.

A bank may apply to AIDEA forthis guarantee if there is some materi-al weakness discovered during the credit underwriting process. Thiscould apply, for instance, to a newbusiness that is still establishing itscredit record and reputation.

Evergreen CommunityDevelopment Evergreen is a nonprofit communitydevelopment company that partnerswith private lenders to help smallbusinesses get financing for commer-cial real estate and major equipmentpurchases. It was set up to administerthe U.S. Small Business Administra-tion’s 504 Loan Program, which canprovide up to 90 percent financing forcertain project costs.

Some banks partner withEvergreen because of the benefits itoffers business customers, including:

• Up to 90 percent financing forland and/or building purchases,new building constructionand/or renovation, machineryand equipment purchase, andleasehold improvements

• Long-term, fixed-rate funds thatcan help enhance a business’cash flow

• 20-year term, which helps avoidlarge installment payments

• Lower down payment (usually10 percent) saves money forfuture growth

Sometimes a bank will contactEvergreen to ask about possibilities ofpartnering on proposed financing. Forexample, if the gas pipeline construc-tion begins, many small businesses innorthern Alaska will have good reasonto expand, but not necessarily theequity or cash to pay for that expan-sion. In this situation, a banker wouldinitially contact Evergreen, and theborrower would then be put in contactwith the loan experts from Evergreen.

Other loan guarantee programsThe U.S. Department of AgricultureRural Development was established topromote the economy and improveway of life in rural areas. Like AIDEAand Evergreen, it partners with finan-cial institutions to support loans madeto small rural businesses.

The Bureau of Indian Affairs alsooffers a loan guarantee program, pro-vided the borrower is at least 51 per-cent Native, and has at least 51percent ownership of the business.

There are many different ways tofinance your new business, or improveor expand your existing business. It’sas simple as working with your localbanker to see which program willbenefit you the most.

BILL INSCHO is a senior vice president andlending officer for First National BankAlaska.


Unique Finance Options For Alaska Business

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BANKING & CONTRACTORSBy BILL INSCHO

REMEMBER A GRADE SCHOOL historylesson about a group of colonists whoobjected to an oppressive central gov-ernment that imposed its will on thepeople, leaving them few liberties.These colonists rebelled, committingto form a “more perfect union” wherethe people’s rights would be secure.

Even upon quick review it is obvi-ous that our Constitution limits thefederal government while reservingbroad powers for the states and thepeople. According to this document,the federal role is, by and large, limit-ed to issues that cross state lines or arebeyond the ability of a single state toaccomplish. Issues like national postaland monetary systems, internationaltrade, or the rules of interstate com-merce come to mind. Thanks to ambi-tious bureaucrats and the decisions ofa few judges, the once clear linesbetween state and local jurisdictionhave all but disappeared.

Federal laws, like the EndangeredSpecies Act and the Clean Water Act,were enacted with the best of inten-tions. After all, who wants dirty wateror a planet devoid of plants and ani-mals? Bureaucrats and special inter-ests, however, have turned theseprotective acts into an excuse to regu-late private property, pushing federaljurisdiction far beyond anything envi-sioned by our nation’s founders.

In 1967, the first list of speciescovered by the precursor to the ESAcontained 77 species: 13 mammals,36 birds, 6 reptiles and 22 fish, a num-ber that has grown to 518 species as ofthe latest count. With the addition ofplant species, not included in the orig-inal list, there are now 1,264 species

that receive federal “protection” underthe ESA. But are they protected?

Even the government’s own statis-tics fail to show success. In the 30-yearhistory of the ESA just 41 species havebeen delisted. Sixteen were removeddue to bureaucratic error – they shouldhave never been there in the first place.Nine species have gone extinct – not astirring endorsement for the ESA. Ofthe 16 species claimed to have “recov-ered,” most did so for reasons beyondESA protection, such as insecticidebans or reduced demand for whale oil.

Each addition to the ESA listsbroadened federal control over localland use decisions.To justify this, regu-lators claimed an interstate commerceconnection. Without this tie there is noconstitutional basis for federal jurisdic-tion. One of the most amazing claimsoccurred in southern California wherethe existence of a dozen flies forcedSan Bernardino County to spend mil-lions of dollars to move a hospital thatwas under construction. Regulatorsargued that since insect collectorsmight come from other states to lookat these flies, the required connectionto interstate commerce was met – andthe courts agreed. Amazing.

The Clean Water Act has an equal-ly colorful history of jurisdictionalclaims. Some of the most burdensomeaspects of the CWA are the wetlandspermitting requirements administeredby the U.S. Army Corps of Engineers.Since the historical limits on Corpsjurisdiction are navigable waterways,it has taken great imagination by thisregulatory behemoth to achieve theircurrent level of control.

Some may remember the days of

the “glancing duck” theory of jurisdic-tion. Corps regulators claimed that if amigrating bird might see an isolatedpond upon which to rest during itsmulti-state migration, that “inter-state” connection established federaljurisdiction. Furthermore, the Corpsclaimed that if there were any hydro-logical connection between a parcel ofland and a navigable waterway, theirregulatory jurisdiction was secured.

The net result from such federalregulation has been months or yearsof delay, and millions of dollars in mit-igation costs heaped upon propertyowners seeking to improve their ownland. Builders, farmers, and otherproperty owners across the countryhave been threatened with financialruin and even prison thanks to theaggressive actions of Corps regulators.

Thus, the great concepts of limitedgovernment and individual rights havebeen greatly compromised by overac-tive regulators and an accommodatingjudiciary. But all is not lost. Thanks to afew well-considered Supreme Courtdecisions and the tenacious actions oforganizations like AGC and PacificLegal Foundation, there is hope thatthe tide is turning when it comes tofederal regulatory authority.

Several years ago the United StatesSupreme Court heard two pivotalcases, called Lopez and Morrison, thatbegan to limit when federal law can beapplied. Lopez dealt with whetherCongress could enact noneconomicregulation on a national scale, eventhough the facts of the case onlyinvolved possession of a gun near aschool. The High Court struck downthis federal law, finding this type of


By PETER G. FUSSELMAN

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LIBERTY AND JUSTICE FOR ALL

Federal Environmental Regulators Face Increased Legal Scrutiny

regulation to be beyond theCommerce Clause powers of the fed-eral government.

Morrison challenged the ViolenceAgainst Women Act. While no onedoubts that violent acts against any-one should be a crime, the SupremeCourt again found that such laws werethe responsibility of the states, not thefederal government. Neither of theserulings dealt with whether the sub-stance of the federal law was a goodidea; they considered only whetherthe Constitution granted the federalgovernment the power to enact lawsnot related to interstate commerce.

Several other decisions havesprung from the jurisdictional stan-dards set down in Lopez and Morrison,signaling an important shift in howthe courts view federal powers.Although the legal system is oftenfrustratingly slow, there seems to be apositive direction for those of us whosupport limits on government powers.

In the spring of 2002, two majordecisions further restricted the powerof federal regulators. In Arizona, regu-lators limited the use of hundreds ofthousands of acres of grazing land to“protect” the pygmy owl and a fishcalled the razorback sucker. However,there was no evidence that thesespecies were even present. When theArizona Cattle Growers’ Associationsued, the government’s defenseamounted to a claim that since the owland fish “might” be there, regulationwas justified. The courts didn’t buy theargument. In fact, the judge hearingthe case stated that he had never seena “thinner case.”

At about the same time, the NewMexico Cattle Growers’ Associationsucceeded in having the critical habi-tat designation for the southwesternwillow flycatcher thrown out. Thishabitat designation relied on inade-quate scientific and economic studies,something the federal appeals courtcorrectly found illegal.

A year later, Pacific Legal Foun-dation successfully challenged aCalifornia critical habitat designationthat combined both of these legallyfatal flaws. Regulators had designatedmore than 400,000 acres near San

Francisco as critical habitat for theAlameda whipsnake. Their economicanalysis was, to say the least, lackingand regulators didn’t know where thesnake actually lived.

After losing at trial, the governmentchose not to appeal, leaving the envi-ronmentalist intervenors high and dry.The attempt by environmentalists to

appeal to the Ninth Circuit was dis-missed. With these legal precedents inhand, PLF recently notified federalregulators of our intent to challengeapproximately 40 critical habitat des-ignations across California that alsofail to pass legal muster under thisstring of cases. This undertaking willnot be easy, but if successful it will


force the federal government tochange how it uses the ESA to controlprivate land use.

The Corps of Engineers has foryears claimed Commerce Clauseauthority to regulate vast amounts ofisolated wetlands under the CleanWater Act.The Corps justified its claimusing a truly creative theory. TheCorps argued that if a migrating bird

might choose to land in an isolatedpond, this created an interstate con-nection sufficient to justify their juris-diction. Owners of a garbage dumpnear Chicago challenged this claimand took the case all the way to theUnited States Supreme Court. TheSupreme Court rejected this “migra-tory bird rule” outright and limitedCorps jurisdiction to wetlands

“adjacent” to navigable waterways.Not willing to give up its regulatory

power, the Corps is currently inter-preting the word “adjacent” in anunbelievably expansive manner, goingso far as to argue that if dirt or othermaterial placed in wetlands has somepotential to eventually end up in anavigable waterway miles away, thismeets the adjacency requirement. PLFis involved in nearly a dozen casesseeking to have the Supreme Courtreject this erroneous contention.

If there is a single thread in thechallenges to excessive federal regula-tion it is this question of jurisdiction,does the federal government have thelegal authority to regulate an activity.In the area of environmental regula-tion, the Constitution generally limitsfederal control to activities directlyimpacting interstate commerce. It isthis concept that PLF and other advo-cates of liberty are pressing as we askthe United States Supreme Court totake up a Texas ESA case, GDF RealtyInvestments v. Babbitt.

GDF Realty owns land near Austin,Texas, that is home to a species of cavebugs that are on the ESA list. Thesebugs have no commercial value andthey exist only in this limited part ofTexas. Why, then, should the federalgovernment be able to control localland use decisions even remotelyinvolving their habitat? We don’t thinkthe federal government should andhave asked the Supreme Court toaccept this case for review. Let us allhope the Court accepts reviewbecause a favorable decision in GDFcould have far-ranging implicationsnot just for private property rights, butalso for limiting other instances of ille-gal federal regulation.

So take heart; there is a movementto roll back the growth of federal reg-ulators. Furthermore, it is makingprogress. The concept of limited gov-ernment is not dead; it just needs afew strong advocates.

As Pacific Legal Foundation’s Director ofDevelopment, Peter Fusselman workswith individual organizations that fundPLF’s important work through its chari-table contributions.



HE BIGGEST private sector player inAlaska construction is the oil and gasindustry. In 2005 alone the oil industry isscheduled to spend over $3 billion with$1.83 billion allocated to construction andcapital projects. Capital investment dollarsspent by this big heavyweight equatedirectly to contracts for Alaskan contrac-tors and jobs for Alaskan families.

Speaking at the recent Alaska SupportIndustry Alliance Meet Alaska energy con-ference, ConocoPhillips Alaska PresidentJim Bowles pointed out that significantinvestment by industry in North Slope fields is required to achieve the AlaskaDepartment of Revenue forecast of a totalSlope production of 945,000 barrels by 2008.

The department forecasts satellite fieldswill contribute more than an estimated200,000 barrels of oil per day in 2008. Inorder to achieve this, satellite productionwill require continued investment –investments that are expected to generatenearly $3 billion in taxes and revenues tothe state over the next decade, accordingto the department.

Jobs ThreatenedUntil most recently, we have had every rea-son to believe that the oil industry wouldcontinue with its capital programs thatemploy thousands of Alaskans. However,recently enacted changes by Gov. FrankMurkowski to ELF – the state’s non-linearand three-dimensional economic limit fac-tor – increased taxes on the Prudhoe Baysatellites, and significantly destabilized thestate’s fiscal regime, which has sent the chillof uncertainty throughout the industry.

“One project in particular, the Orionfield development at Prudhoe Bay, hasbeen shelved indefinitely, because of the impact of the tax increase,” Bowlessaid. “After careful evaluation of the taxincrease, the project economics are no

CONSTRUCTIONin Alaska’s Oil Patch –

By LARRY J. HOULE

PART II

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The estimated $500 million West Sak development will generate more than 850 jobs in Alaska during pea


longer able to compete with the other investment opportu-nities. The project represents a loss to Alaska of more than$500 million of capital investment for drilling and facilitieswork. This project would have also generated an additional20,000 barrels per day of incremental oil.”

Although Alaska contractors have lost the opportunity toparticipate in the four-year, half-a-billion dollar Orion proj-ect for now, there are four major capital projects that arewell on their way. The ConocoPhillips/ Anadarko PetroleumAlpine Capacity Expansion project and the ConocoPhillips/

BP West Sak Heavy Oil Expansion projects were featured inthe Fall 2004 issue of the Alaska Contractor. In this issue, theAlyeska Pipeline Service Company $250 million pipelinereconfiguration and electrification project, and the $500 mil-lion ConocoPhillips-Anadarko Petroleum Alpine satelliteproject are featured.

Pipeline ReconfigurationOn June 20, 1977, the very first barrel of oil flowed fromPump Station 1 on the trans-Alaska oil pipeline. Nine days

ak construction in 2005.

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later that same barrel of oil arrived atthe Marine Terminal in Valdez. Sincethat day, over 14 billion barrels of oilhave been shipped through the 800-mile pipeline.

The trans-Alaska oil pipeline is acrude oil transportation system thatbegins at Pump Station 1 on Alaska’sNorth Slope, and terminates in themarine terminal storage and tanker

facility in Valdez.This 48-inch-diameterline crosses three major mountainranges and 34 major rivers, achieving amaximum elevation of 4,379 feet atAtigun Pass, which is located 166 milessouth of Pump Station 1.

Alyeska Pipeline Service Company,incorporated in 1970, and owned by a consortium of owner companies, isthe organization responsible for the

design, construction, operation andmaintenance of the system. In March2004, Alyeska received approval fromthe owners to invest over $250 millionin a project to upgrade the pipeline’spump stations. The pipeline recon-figuration project is one of the mostsignificant investments since the con-struction of the trans-Alaska oilpipeline; and involves installing elec-trically driven crude oil pumps at fourcritical pump stations. It is combinedwith increased automation and anupgraded control system.

Pump Stations 1, 3, 4, 5 and 9 willbe upgraded and standardized withstate-of-art equipment and new electric-motor-driven pumps. PumpStation 5 will not require a new pumpmodule, but will be upgraded to func-tion as a pressure relief station on thelower side of Atigun Pass.

Alaskan contractors already success-fully installed the new pump tie-ins atPump Stations 1 and 3 during theAugust 16-17, 2004, maintenanceshutdown of the pipeline.

Other Pump Station modifications


Trans-Alaska oil pipeline

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include the removal of 16,000-horse-power, turbine-driven pumps, andreplacement with smaller 6,500-horsepower, electric-motor-drivenpumps. Existing control rooms will bereplaced with new unmanned controlmodules, and many of the existingutilities will be removed from serviceand replaced with modern, more effi-cient automated equipment.

Hard Dollar ContractsOn the contractor side, Alyeska com-petitively bid all of the module fabri-cation work and awarded thecontracts to Alaska contractors. Thework includes variable frequency drivemodules, power distribution centermodules, control modules, pump/motor modules, and pipe racks.

According to Mike Heatwole, corpo-rate communications manager forAlyeska, there are over 130 Alaskans(non-Alyeska employees) workingdirectly on the project. A number thatwill likely double during the summerconstruction season. Project completionis slated to occur by the end of 2005.

Alaskan vendors like Dowland-Bach Corporation, a locally ownedfabrication shop in Anchorage, willdirectly realize nearly half of theAlyeska investment. Dowland-Bachspecializes in UL Listed control pan-els, and was awarded the contract for

the highly sophisticated programma-ble logic controllers used in the elec-trification upgrade.

VECO and ASRC Energy Serviceshave been awarded the contract forthe fabrication of the VFD (variablefrequency drive) modules that adjust

Pump Station 4

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pump speeds, fabrication of pumpmodules that contain the electricmotors that drive the actual oil pumps,and the power distribution modulesfor Pump Stations 1, 3, 4 and 9.

According to ASRC Energy ServicesExecutive Vice President Jack Laasch,the company’s Power and Communi-cations Business Unit is performingwork on the project associated withinstallation of pilings, and installationof a 69 KVA line from the CentralPower Station to Pump Station 1, bothlocated on the North Slope.

Lynden Logistics Vice PresidentJeanine St. John says several LyndenCompanies have been involved intransportation movements; switchgear coming from ABB in Sweden andpiling from Houston. Heavy-haulmoves from Anchorage fabricationshops to the pump stations will be solarge that both Lynden and CarlileTransportation company assets will bedeployed for delivery.

This project is about bringingtoday’s state-of-the-art technology tothe 30-year-old pipeline infrastruc-

VFD (variable frequency drive) module fabrication work at the VECO fab shop. Workers areinstalling the roof of the module.

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ture. Scalable and modular to more efficiently handleincreases and decreases in pipeline flow, it will improve theeconomics of all North Slope projects. The reconfigurationmakes the system simpler and easier to maintain, and willreduce environmental emissions and risks from spills of liq-uid fuel transfers in the field. In short, it’s how a pipelinewould be built if it were being built today.

NPR-A ProductionIn September 2004, the Bureau of Land Management – afteralmost a year of study – released the final EnvironmentalImpact Statement for the future development of satellitefields on the western North Slope of Alaska. Currently, jointowners Anadarko Petroleum and ConocoPhillips Alaska aremoving forward to develop the first two satellites: CD3 orFiord, and CD4 or Nanuq. Production is scheduled to beginby 2008.

Alpine is located in the Colville River Delta on the east-ern border of the National Petroleum Reserve-Alaska.Alpine is about 35 miles west of Kuparuk, and 9 miles northof the village of Nuiqsut. It is the first North Slope develop-ment on Native-owned lands that pays royalties to Nativecorporations.

Alpine is also the westernmost development on the NorthSlope – literally beyond the end of the road that ends atKuparuk. Except in winter, Alpine is accessible only by aircraft.

The Fiord and Nanuq permits were issued in December2004, construction began in January 2005. ConocoPhillipsNorth Slope surveyor

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Western North Slope Development Manager Mark Irelandsays the Alpine satellite development represents over 550jobs at peak employment, a $500-million investment by thecompanies, and extraction of 35,000 barrels of oil per day by2008. It is anticipated that over 40 new wells will be in pro-duction late in 2006. Impressive numbers, and an impres-sive project, by any standards.

World-class ProjectSo just how do world-class projects like this come togeth-er? Alaska is blessed with “good rocks” on the NorthSlope. We have the right geological structures. The mainstructure is referred to as the Barrow Arch, which tends tostretch between the Arctic National Wildlife Refuge onthe eastern North Slope, to the community of Barrow on

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the western North Slope; all within 25 miles of theBeaufort Sea.

Once the companies have discovered oil using today’sadvanced 3-dimensional seismic techniques, it is decidedhow best to recover it, and determined if it is economic todevelop. The state’s fiscal climate is a significant componentto the economic analysis, and weighs heavily on the deci-sion to develop or not. Another part of the analysis is deter-mining the best surface locations to place the minimalfootprints that have become standard in today’s NorthSlope development process.

Using extended-reach drilling, companies can reach andproduce reserves within a 15,000-foot radius of the gravelpad location. The companies avoid water bodies, use highground for any roads, and minimize the length of pipelines.The typical surface area impacted by these Alpine satellitesis less than 10 acres.

Construction WorkAll of this equates to work for Alaska contractors. Facilitiesand pipeline engineering work for Fiord and Nanuq hasbeen awarded to VECO Alaska. Civil engineering work wasawarded to PN&D. Doyon Drilling has been awarded thedrilling work. Road, pad and ice road construction went toAlaska Interstate Construction, LLC.

The Weld Shop in Fairbanks is constructing the vertical sup-port members for pipelines. Arctic Structures has been award-


An electrician working at Alpine

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ed an emergency living quarters mod-ule. ASRC Energy Services has beenawarded the horizontal support mem-ber fabrication.

The FutureToday’s energy markets truly are glob-al, facing worldwide competition forcapital dollars. Assets, capital andinvestments by large multinationalcompanies can move virtuallyovernight to areas of the globe – whereinvestment risk is minimized, and theprospect of project success is high.

Something we have known allalong, but recently validated in recentstudies, is that Alaska is an extremelyexpensive oil and gas province to dobusiness in. Unfortunately, there is a

significant threat to future explorationand production in Alaska. The recentoil production tax change by the gov-ernor will serve as the poster child forindustry – for the need of a clear anddurable fiscal contract.

For sure, there will be unintendedconsequences to the state’s willing-ness to suddenly and arbitrarilychange its interpretations of tax law.Increased cost and risk will be consid-ered when assessing future develop-ments. State officials, and the public,need to remember companies mustwisely invest shareholder money.Corporate officers look for opportuni-ties where they can make reasonableprofits without undue risk.

Alaska has everything in place for 60years of oil and gas development. Highenergy prices, growing demand, a

highly skilled Alaskan workforce, and vast energy reserves are all factors in Alaska’sfavor. Investor confidence is all that is needed to make development continue, aresponsibility that rests in the hands of our elected officials.

LARRY J. HOULE served as General Manager of the Alaska SupportIndustry Alliance for 5 years. He is taking a sabbatical and embark-ing on post-graduate study at Colorado State University in Ft.Collins in the fall. He will be pursuing a master’s degree in construc-tion management, and plans to return to Alaska and work in the con-struction industry.


Work is ongoing at Alpine.

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North Slope Oilfield RoadsBULLEN POINT ROAD – A coast route to oil/gas leases on state lands to the Bullen Point area. The project will include right of way and designfor pipelines and utilities as well.March 2005, reconnaissance engin-eering reports due, and baseline envi-ronmental and engineering studiesEIS begin.

WEST FOOTHILLS ROADS – A 45-55 mileroad west off Dalton Highway atPump Station 3 to upper KuparukRiver area. All-season road access tooil and gas leases on state land in the Brooks Range Foothills. Feb.2005 began review of alternativeroutes into the region to optimizeaccess to high-value leases. Pre-liminary engineering/NEPA scheduledevelopment underway.

Mine Roads & PortsDELONG MOUNTAIN TERMINAL PORT

EXPANSION – Ship would come directlyinto port through a dredged channeland turning basin. U.S. Army Corps ofEngineers draft EIS review to beginmid-2005.

POINT LAY DEADFALL SYNCLINE COAL

MINE ACCESS – Reconnaissance engi-neering underway to determine ifthere is a practical road route betweenthe coal mine and the DelongMountain Terminal, to be completedin May 2005. Grades and terrainbreaks appear to preclude rail; 90-mileroad appears most practical for thismine that could export 1-2 milliontons of high-quality coal per year toAsia for use in coal-blend formulas.

NOATAK AIRPORT-RED DOG MINE

ACCESS ROAD – Draft reconnaissanceengineering report due March 2005.

Industrial UPDATERoads & Ports


5,000-foot, jet-capable runway atNoatak, and 20-35-mile road to RedDog Mine. Project would improve aircarrier operations for Red Dog Mine;benefit Noatak, including fuel deliver-ies by truck from port, and has poten-tial for future daily transport of mineworkers to and from Noatak.

NOME GLACIER CREEK ROAD TO ROCK

CREEK MINE – Two-season constructionproject is underway and will be com-plete by fall 2005. Realignmentimproves access to Rock Creek GoldMine, removes traffic from Nomewatershed, improves sate maintenanceand operation costs, and is fundedthrough federal-aid highway program.

PEBBLE GOLD-COPPER PORT AND ROAD

– Cook Inlet port and 80-mile road tomine site uses Williamsport-Pile BayRoad as part of route. Routed awayfrom Pedro Bay and Lake Iliamnashoreline. Allows use of Iniskin Bayport site or Williamsport barge landingfor ore. Complete reconnaissance

engineering and permit data, 2005field season. Reconnaissance engi-neering report review begins June2005. Final reconnaissance engineer-ing is to be complete late 2005.

Project CloseoutsCOLVILLE RIVER ROAD – After consulta-tion with industry, DOT&PF movesproject to close-out status. Engin-eering and environmental data will beheld for future use, if long range plansshow value of road.

YUKON-KUSKOKWIM ROAD – PlacerDome decided in January 2005 to con-struct Kuskokwim River road as partof mine development, and determinesYukon River road not needed. Projectreviewed by DOT&PF and goes toclose-out status.Yukon River road canbe restarted if major new mines openin Flat area.

Source: Alaska Department of Transportation andPublic Facilities Industrial Ports and RoadsProgram Status Report, February 2005, MikeMcKinnon


AIRBANKS-BASED contractors are gearing up for anotherbooming year in new construction, although some haveworked throughout the winter months with little or none ofthe seasonal break that usually accompanies sub-zero winter temperatures in the Interior.

Crews working for Fairbanks-based Denali Mechanical Inc.typically spend between July 4 and Thanksgiving on the job,according to the company’s chief executive officer BobCummings. This year, his crews worked through the wintermonths, which are generally slow. “For us, it is unusual,”he said.

The level of work for Denali Mechanical hit record highsin 2003 and 2004, Cummings said, and he expects anotherbanner year in 2005, based on information provided toAlaska’s construction sector from government agenciesfunding such work. Other Interior contractors echo that sentiment.

“It was huge – 2004 was a monster year for constructionup here,” said Bert Bell, president of GHEMM Company,one of the major contractors in Fairbanks.

Record YearFairbanks city building statistics back that up, indicatingthat 2004 was a record year for new construction, signifi-cantly more than previous years, said Steve Shuttleworth,the city’s building officer. Building projects within the cityboundaries totaled more than $141 million in 2004 – pastyearly averages range from $42 million to $45 million.

Shuttleworth said construction values in 2003 were alsohigher than past averages, tallying about $70 million. Withinthe last 25 years, the largest annual value in new constructionwork in the city occurred in 1985, which was $80 million.

Of the $141 million in new construction initiated in 2004,roughly 80 percent came from the private sector, somewhatuncommon for Fairbanks. Historically, government andpublic sector spending has accounted for the majority ofnew construction in the city, Shuttleworth said. A majorityof the new construction work within the city boundaries iscommercial development.

For 2005, Shuttleworth expects another year with aboveaverage spending, ranging from $60 million to $80 million.

By PATRICIA LILES

FAIRBANKSConstructionF

Construction crews worked through the winter on the $7.5 millionnew fire station headquarters, scheduled to be completed July 2005.

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in the midst of unprecedented


Retail StoresIncluded in that 2005 estimate is a large-scale, private develop-ment planned for retail use. It is to be built on Bentley Trustland, and located just west of the recently opened Lowe’s store,which is on the rapidly expanding northeast side of Fairbanks.Those development plans call for construction of a 26,000-square-foot Barnes and Noble bookstore, a 45,000-square-footAlaska Sportsman’s Warehouse, an 18,000-square-foot OldNavy, a 15,000-square-foot Petco, and two more shops,presently unnamed at the present time, Shuttleworth said.

That project is slated to start in April 2005, by an out-of-state contractor. Engineered Structures Inc., or ESI, is listedas the contractor that will construct the shell of the facility,according to the City of Fairbanks building department. ESIis a general contractor headquartered in Boise, Idaho, andhas been active in Alaska before. ESI recently completed thenew Fred Meyer store on the east side of Fairbanks, whichopened in late February; and has built stores for Fred Meyerin Palmer and Anchorage, Sports Authority in Anchorage,and Vista Optical in Eagle River.

Office BuildingsAdditionally, Alaska USA Federal Credit Union will build afour-story, 55,000-square-foot office building this year on land

Matching the unusual shape of the exterior are dramatic curves andangles visible inside the new portion of the Museum of the North.

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Construction crews prepared to pour concrete in late October for a new walkway and entrance to the University of Alaska Museum of the North,located on the Fairbanks campus. Construction work is mostly complete, although crews continue with detail work on the addition.

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just east of the Bentley Trust develop-ment, located between Seekins FordLincoln Mercury dealership and theJehovah’s Witnesses Kingdom Hall onthe Old Steese Highway. Shuttleworthsaid the building will be called theFairbanks Financial Center.Anothernew office building, with 8,000 squarefeet of space and a restaurantattached, is also in the works for con-struction within the city limits,although details were not available atpress time.

“The phone is going non-stop, witha bunch of developers calling in withquestions,” Shuttleworth said. “A half-dozen more substantial projects aregoing in, but they don’t want to tell usuntil the last minute.”

Military SpendingArea military spending should remainstrong in 2005, and even though thatwork actually occurs outside of the cityboundaries, Shuttleworth says it cre-ates a continued ripple for economicdevelopment within the city.

Alaska contractors Cummings andBell both tout substantial militaryspending as a key factor in theFairbanks construction boom. “TheCorps of Engineers said they will havethe largest work load they have everhad [in Alaska],” Cummings said.“That’s not just the Air Force andArmy, but all phases of the military.”

At Fort Wainwright, adjacent to theFairbanks city boundary, Bell saidGHEMM Co. worked on several proj-ects in 2004, including construction ofa hotel, continued work on the BassettArmy Community Hospital, andpower plant renovations. “For us, thebulk of money is federal money, whichwas certainly the biggest impact uphere last year,” he said.

Fire StationThe City of Fairbanks is among thosegovernment entities managing a largeconstruction project, with construc-tion of a new fire station headquar-ters at 1101 Cushman, one blockfrom city hall and the city police sta-tion. Funded by bonds approved inOctober 2003, the $7.5 million proj-ect is scheduled for completion July


2005, according to Patrick Smith,project manager for the city.

“The project represents the City’sfirst experience in constructing amajor public facility using the design-build technique,” Smith said. “The ini-tial learning curve was steep, butexciting. One of the major advantagesof this approach is speed.”

The city’s detailed Request forProposal was issued in November2003, with design submittals receivedfrom competing design-build teamsby January 2004. General contractorNeeser Construction and architec-tural firm Koonce Pfeffer Bettis, bothof Anchorage, won the bid – break-ing ground in April 2004.

“The Neeser/KPB team has done an exemplary job of meeting strictCity requirements and the expec-tations of Fire Chief WarrenCummings,” Smith said, “doing sounder a painfully tight budget.”

Two Fairbanks-based subcontractorsworked on the project: GraystarMechanical and Industrial Electric.Smith said he was impressed with theirability to adapt in the design-build con-ditions. “It takes a pretty nimble contrac-tor in the field to make adjustments,” hesaid. Work on the project is running “assmooth as a Swiss watch,” despite somework slow-down during minus-40- andminus-50-degree temperatures duringwinter months.

The new facility contains 27,578square feet of gross building area,features a concrete tower for hosedrying and training purposes and asplit-faced dark gray concrete blockexterior with red finishing on theupper stories of the building.

UAF Museum Other large, multi-year constructionprojects in the Interior include severalat the University of Alaska Fairbankscampus. Probably the most visible and most talked about is the UAMuseum expansion, which exceededthe planned $32.75 million budget by$9.25 million – nearly 30 percent.

Nearly half of the extra money, $4.5million, will go directly to increasedconstruction costs for the 43,791-square-foot expansion project, accord-


Work continues on the Bassett Army Community Hospital.

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ing to Kate Ripley, director of publicaffairs for the University of Alaskastatewide. The increase covers a num-ber of change orders with the project,she said. The remaining $4.75 millionwill cover associated costs forredesigning exhibits and renovationsto the existing 40,280-square-footfacility, work that will continuethrough the spring, summer and fallmonths of 2005.

Originally scheduled to be com-plete in January, final finish workcontinues in the expansion, saidKerynn Fisher, communicationscoordinator at the museum. Crewsworking for contractor AlaskaMechanical, Inc., continue to put fin-ishing touches on the new wing, andhave started renovations to the exist-ing facility. The gallery was shutdown in late February, in order toallow renovations to be completed intime for the beginning of the sum-mer tourism season in late May.

“We are expecting renovations togo much faster,” she said. “The newwing has a lot of curves and angles,while renovation (of existing space)has a lot more 90-degree angles..”

Renamed the University of AlaskaMuseum of the North, the uniquelyshaped addition doubles the size of theexisting building, to 81,000 square feet.Expanded areas will include 28,000square feet in a research center, nearlydoubling the current collections area.

According to a museum pressrelease, “the new 10,000-square-footRose Berry Alaska Art Gallery will inter-pret art as an expression of the Alaskaexperience, and the centerpiece of theexpanded museum will bring the muse-um’s art treasurers out of storage, intopublic view, and give visitors a deeperunderstanding of the nature of artisticcreation, interpretation and history.”

Work to install exhibits in the newart gallery will continue through thesummer and fall months, with an antic-ipated completion date in December,Fisher said. That work will be conduct-ed by a mix of contractors andUniversity staff.

Included in the museum additionare a 3,000-foot Learning Center, aPre-College Education Center, a smart



classroom for UAF students and an artstudy room. Additionally, a multimediaauditorium and an expanded museumstore are included in the expansionproject, which will be open this sum-mer. Plans currently call for a Sept. 10ribbon cutting and open house.

Construction crews peaked at lessthan 90 workers, but averaged 55-65per day at the UA Museum job site,according to Carol Adamczak, UAF’sproject manager.

R&D Facility Another major construction project atUAF includes construction of a42,000-sqaure-foot facility, named theBICS-BIRD Biological Research andDiagnostics Facility. It is scheduled tobe completed in February 2006, at acost of $19 million, and will incorpo-rate program components and facili-ties for laboratory animal holding andcare, procedure rooms, animal careadministrative space, onsite biologicalwaste handling, and building supportspace. Diagnostic labs, a surgical suiteand a necropsy suite are included in

Fill stations will provide water and air to parked trains at the new Fairbanks train depot.

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the design, but will not be finisheduntil additional funding is obtained,according to UAF public affairs.

Foundation work at the BICS-BIRDfacility has been completed and con-struction, which subsided for the win-ter months, will resume this spring.

Another UAF construction project isa renovation project at the Tanana ValleyCampus Allied Health Center located inthe TVCC Center in downtownFairbanks. It is scheduled to be complet-ed in June 2005, at a cost of $1.5 million.

Railroad DepotCrews working for Alaska MechanicalInc. also spent winter months on thejob at another Fairbanks project, thenew timber-frame depot being builtfor the Alaska Railroad.

Located on a 32-acre site adjacentto the existing railroad operation yard,the new Fairbanks Intermodal Facilitywill feature a state-of-the-art traindepot, additional bus parking, and safemovement of passengers making trav-el connections on trains, buses, taxisand automobiles. Access will be pro-


The Alaska Railroad’s Fairbanks train depotis scheduled to be completed during the2005 summer tourism season.

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vided with a new intersection androad at the intersection of theJohansen Expressway and DanbyRoad.

The $23.7 million project has grownslightly, to a total of $24.5 million,according to Brett Flint, manager of facil-ity construction for the Alaska Railroad.“We’ve added scope to the project, put-ting in additional track and some addi-tional things that will help tourcompanies operate out of that facility.”

The project is funded by theFederal Transit Administration, theFederal Railroad Administration andthe Alaska Railroad, and is scheduledto be complete in the summer of 2005.Flint said “substantial completion,”allowing occupancy and intended useis scheduled for mid-April. Just intime for the mid-May tourism seasonstart. Contractors will continue with apunch list, exterior work and land-scaping through mid-summer.

Once complete, the new depot sitewill allow for expanded passengertrain lengths, eliminating road block-age at the current downtown depotexperienced during loading andunloading. Passenger trains willremain intact and will be maintainedat the depot site, which will reduceoperations and maintenance costs.

Construction of up to 13,000lineal feet of passenger main trackwill provide direct access to thedepot and efficient turnaround oftrains for morning departures.Flint says that compared to thethree hours currently required toturn around a train, that same taskwill be achieved in 20 minuteswith the new “balloon,” a loopedtrack. Additionally, freight han-dling through the “trailer on flatcar” will be improved using thenew intersection.

Work began on the project severalyears ago, through design, site acqui-sition and prep work. AMI brokeground in April 2004 on the modifiedtimber-frame and steel-frame con-struction project.

Interior ConstructionThat military impact stretchesbeyond the immediate Fairbanks


area, down the Richardson Highway.“You can’t ignore the importance ofFort Greeley and the missile defensesystem,” Cummings said. “It’simportant to Delta Junction and toFairbanks.” For Denali Mechanical,that translated to work on a new ele-mentary school and a fire station inthe Delta Junction area in 2004.

Other large Interior constructionprojects outside of Fairbanks includethe Pogo Gold Mine, which kickedoff construction in 2004 in theremote upper Goodpaster Riverdrainage, which is 40 miles north-east of Delta Junction.

In North Pole, H.C. Price began ini-tial work last fall at the new gas-firedpower plant commissioned by GoldenValley Electric Association, a projectthat will ramp up this spring.

Early StartAccording to Shuttleworth, construc-tion work may start a little earlier thisspring, despite heavy snowfall in theInterior this winter. “The frost depth isnot as deep because we had the biginsulating factor from the snow,” hesaid. “Contractors should be able toget into the ground earlier, as much astwo weeks, this year.”

That jump-start on new construc-tion may well be needed, as severallarge projects started in 2004 will con-tinue into the 2005 construction sea-son. The elevated level of activity hasdrained local personnel resources, Bellsaid, from top management down toapprentices.

“I think everybody was busy lastyear,” he said. “The union halls werepretty well tapped out, and it’s been abusy winter. I do think it is a good,positive impact for the community. It’sa good time to be involved in the con-struction industry.”

“Contractors should be able to get into theground earlier, as much as two weeks,this year.”

17th AnnualAGC Invitational

Golf Scramble

Congratulations to thefollowing prize winners

TEAM PRIZES

1ST PLACE – TEAM 13BDavid Hill, Spenard Builders Supply

Jason FaganMary Rush, Stark Lewis

Doug Crawford, SimplexGrinnellLarry Sweesy, Craig Taylor Equipment

2ND PLACE – TEAM 4BTim Walsh, Spenard Builders Supply

Bill Frishe, Construction Machinery IndustrialMike Miller, Wilder Construction

David Nevin, thinc, LLCKathy Saugstad, Guest

3RD PLACE – TEAM 6ARaymond Smith, Painters Union

Shaun Cattanach, GuestSteve Francis, Insulfoam

Kirk Currey, Construction Machinery IndustrialAdam Alborn, Alborn Construction

LONGEST DRIVE

Women’s – Dorine TessierMen’s – Ben Simmons, Goodfellow Bros.

Men’s Longest Drive Winner Women’s Longest Drive Winner

3rd Place Team

2nd Place Team

1st Place Team

Registration Form – 18th Annual AGC Invitation Golf Tournament Scramble

Name: ____________________________________________________ Company: _____________________________________

Address: ________________________________________________________________________________________________

Fee: $125.00 per person Cash ____ Charge ____

Visa ____ M/C ____ No. ________________________________________ Expiration Date: ___________________________

Signature: _________________________________ Shirt Size: S ____ M ____ L ____ XL ____ XXL ____ XXL ____

Please provide the following information: Male / Female Handicap or average score ___________________

Mail to: AGC of Alaska, 8005 Schoon St., Anchorage, AK 99518 Fax to: (907) 562-6118

18th AnnualAGC Invitational Golf Scramble

Limited Space Available

Deadline for entry is Friday, June 17, 2005

Thursday Night FestivitiesHave refreshments and snacks, check your pairings, meet your partners,

plan your team’s strategy, and play games.Door prizes will be drawn for those in attendance.

Friday TournamentThe tournament is a scramble format with a 7 a.m. shotgun start.

Team selection will be blind draw based on handicaps. Plays may choosetheir tean; however, thse teams will not be eligible for the scramble team prizes.There will be a separate prize for the winning made-up team. Rules sheets will

be provided to all golfers.

AwardsAll awards will be announced and presented at the barbecue afterthe tournament. BBQ will be held at Moose Run. In case of ties,

golf cards will be matched by starting at ahole selected by the committee.

ThursdayJune 23

5:30 p.m.Pre-tournament reception

AGC Anchorage Office8005 Schoon Street

FridayJune 24

6 a.m. Check-in7 a.m. Shotgun Start

Moose Run Golf Course


SAFETY REPORT (Continued)

• Recognition by holding a nation-ally recognized and accredited credential

Recently an agreement was reachedbetween OSHA, the OccupationalSafety and Health Administration, andCCHEST recognizing the STS, SafetyTrained Supervisor in Constructioncertification.

The agreement recognizes the STSas verifying the safety and healthknowledge of individual supervisorson sites. Those who employ STS-certified supervisors indicate to com-pliance officers that a site is beingoperated by individuals with demon-strated knowledge and ability and may contribute to a project'squalification for a "Focused OSHAInspection." STS certification alsohelps employers to meet their respon-sibility of instructing employees inhazard recognition and control.

"This agreement enables OSHA to

recognize a certification that verifiesthe safety and health knowledge ofindividual supervisors on constructionsites," said John L. Henshaw, AssistantSecretary of Labor for OSHA. "We aredelighted to encourage the promotionof safety and health at constructionworksites through such programs asthis certification program of CCHEST.

The STS program began in 1995 forfirst-line construction supervisors,foremen, crew chiefs and craftsmenwho have responsibility to maintainsafe conditions and practices on con-

struction job sites. The STS holdsnational accreditation from theCouncil of Engineering and Scientific Specialty Boards (CESB) and is based on training, experience and demon-strated knowledge by examination.

CHRIS ROSS, CSP, is AGC/NANATraining Systems General Manager.For class dates and more informa-tion, call (907) 565-3300, visit www.agcsafetyinc.com, www.nana-nts.com,or follow the safety links at www.agcak.org.

Much of the information for this articlecomes from the CCHST Web site, whereyou can find more information about thecertification process, download a candi-date handbook and obtain applicationforms. CCHEST is a joint venture of theAmerican Board of Industrial Hygiene(ABIH) and the Board of Certified SafetyProfessionals (BCSP). Other CCHESTcertifications include the OccupationalHealth and Safety Technologist (OHST)and the Construction Health and SafetyTechnician (CHST) certifications.

Contact Information

Council on Certification of Health,Environmental and SafetyTechnologists208 Burwash AvenueSavoy, Illinois 61874-9571(217) 359-9263 ext. 145E-mail: [email protected] Site: www.cchest.org

Testing Locations

Anchorage - 5210Prometric Testing Center3401 Minnesota DriveUniversity of AlaskaAnchorage, Alaska 99503United States Of America(907) 276-6007

Fairbanks - 7734University of Alaska - Fairbanks207 B - Gruening Bldg.Fairbanks, Alaska 99775United States Of America(907) 474-2737

Safe workpractices add to productivity and profit.


Next TimeCONSTRUCTION IN THE BUSH is all about logistics. Building anything in com-munities off the rail and road system means meeting logistical challengesand dealing with adverse conditions, which can be extreme.

Much of the funding for construction in rural Alaska is funneled throughthe Denali Commission, a federal-state partnership.

In 2005, the Denali Commission has a $133-$153 million federal budgetfor construction and infrastructure projects throughout rural Alaska, withadditional funds expected from the State of Alaska.

Read about construction in the Bush in the next issue of the AlaskaContractor.

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A bulk fuel storage project was recently completed in Gambell and final design is complete for wind generation, power plant, heat recovery andelectrical distribution projects. Conceptual planning and design for a clinic is underway.

ACE Transport Inc. . . . . . . . . . . . . . . . . . . . . . 33

Action Security, Inc. . . . . . . . . . . . . . . . . . . . . 19

Aeromed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

AHFC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

AHTNA Construction . . . . . . . . . . . . . . . . . . . 51

Alaska Industrial Hardware Inc. . . . . . . . . . . . 10

Alaska Mechanical, Inc. . . . . . . . . . . . . . . . . . 51

Alaska Modular Space . . . . . . . . . . . . . . . . . . . 9

Alaska Steel Co.. . . . . . . . . . . . . . . . . . . . . . . 36

Alaska Telecom, Inc. . . . . . . . . . . . . . . . . . . . 58

Alaska USA FCU . . . . . . . . . . . . . . . . . . . . . . 29

Allied Building Products Corp. . . . . . . . . . . . . 21

Alyeska Pipeline Service Co. . . . . . . . . . . 32, 38

Amerisafe . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Anchorage Sand & Gravel Co., Inc.. . . . . . . . 59

Arctic Foundations Inc.. . . . . . . . . . . . . . . . . . 48

Arctic Transportation Services . . . . . . . . . . . . 44

ASRC Energy Services, Inc. . . . . . . . . . . . . . 36

Atkinson, Conway & Gagnon Inc. . . . . . . . . . 57

Bowhead Transportation . . . . . . . . . . . . . . . . 50

Bucher Glass, Inc. . . . . . . . . . . . . . . . . . . . . . 55

C&R Pipe and Steel, Inc. . . . . . . . . . . . . . . . . 51

Carlile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Center for Employment Education . . . . . . . . . . 2

Chemical Specialities, Inc./

Manke Lumber Co. . . . . . . . . . . . . . . . . . . 45

Chugach Electric . . . . . . . . . . . . . . . . . . . . . . 15

ConocoPhillips . . . . . . . . . . . . . . . . . . . . . . . . 11

Construction Machinery

Industrial, LLC. . . . . . . . . Outside Back Cover

CONTECH Construction Products . . . . . . . . . 58

Craig Taylor Equipment Co . . . . . . . . . . . . . . 28

Cummins Northwest, Inc. . . . . . . . . . . . . . . . . 25

D & L Construction Company, Inc. . . . . . . . . . 29

Davis Block & Concrete . . . . . . . . . . . . . . . . . 40

Delisio Moran Geraghty & Zobel, P.C. . . . . . . 59

Enstar Natural Gas Co. . . . . . . . . . . . . . . . . . 27

Everts Air Cargo . . . . . . . . . . . . . . . . . . . . . . . 50

First National Bank Alaska . . . . . . . . . . . . . . . 35

Fountainhead Development Inc/

Wedgewood Resorts . . . . . . . . . . . . . . . . . . 7

GMG General, Inc. . . . . . . . . . . . . . . . . . . . . . . 5

The Alaska

ContractorINDEX OF ADVERTISERS


Greer Tank . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

HMH Consulting, LLC. . . . . . . . . . . . . . . . . . . 55

Holmes Weddle & Barcott . . . . . . . . . . . . . . . 46

Horizon Services Inc. . . . . . . . . . . . . . . . . . . . 57

IBEW/NECA . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Independent Rental . . . . . . . . . . . . . . . . . . . . 56

Insulfoam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Integrated Concepts & Research Corp. . . . . . 49

Jackovich . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Kalaq.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Ken Brady Construction Co., Inc.. . . . . . . . . . 55

Klondike Concrete . . . . . . . . . . . . . . . . . . . . . 55

Klondike Inn Motel . . . . . . . . . . . . . . . . . . . . . 59

Lakeside Industries . . . . . . . . . . . . . . . . . . . . 25

Lynden Inc. . . . . . . . . . . . . . . Inside Front Cover

Marsh USA Inc. . . . . . . . . . . . . . . . . . . . . . . . 19

MTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

NC Machinery. . . . . . . . . . . . . . . . . . . . . . . . . . 1

Northern Air Cargo . . . . . . . . . . . . . . . . . . . . . 40

Northrim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Pacific Alaska Forwarders . . . . . . . . . . . . . . . 47

Parker, Smith & Feek Inc . . . . . . . . . . . . . . . . 23

Polar Supply Co. Inc . . . . . . . . . . . . . . . . . . . 44

Rain Proof Roofing LLC . . . . . . . . . . . . . . . . . 59

Rapid Action Mailing Service . . . . . . . . . . . . . 41

Ron Webb Paving & Snow Removal . . . . . . . 51

RSA Engineering Inc. . . . . . . . . . . . . . . . . . . . 58

Seattle Daily Journal of Commerce . . . . . . . . 29

Seekins Ford-Lincoln Mercury . . . . . . . . . . . . 48

Shope Concrete Products . . . . . . . . . . . . . . . 58

Span Alaska Consolidators Inc. . . . . . . . . . . . 38

Spenard Builders Supply . . . . . . . . 9, 29, 41, 47

TOTE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Trailboss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Truckwell of Alaska. . . . . . . . . . . . . . . . . . . . . 22

Udelhoven Oilfield System Services Inc. . . . . 57

Unit Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Unitech of Alaska . . . . . . . . . . . . . . . . . . . . . . 55

VECO Alaska, Inc. . . . . . . . . Inside Back Cover

Weldin Construction, Inc. . . . . . . . . . . . . . . . . 55

Worksafe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Spring 2005 THE ALASKA CONTRACTOR | 59

The Alaska

ContractorINDEX OF ADVERTISERS


Just A MinuteBystanders may identify stroke in 60 seconds

A bystander may be able to spot someone having astroke by giving the person a simple, quick test to see if theycan smile, raise both arms and keep them up, and speak asimple sentence coherently.

The test, which takes less than one minute, has helpedhealthcare professionals accurately identify stroke patients.If bystanders can relay results of this test to an emergencydispatcher, it could speed treatment to stroke patients. Timeis crucial in treating stroke.

Remember these three simple questions: • Can you raise your arms and keep them up?• Can you repeat a simple sentence? • Can you smile?

Call 911 immediately if the person has difficulty with anyof the three items, such symptoms should be evaluated bymedical professionals immediately.

Medical researcher Amy Hurwitz says call for help if aperson’s speech unexpectedly becomes slurred or incom-prehensible, if one side of someone’s body goes numb, or ifone side of the face droops down.

If stroke victims are given proper help within three hoursof the stroke, the ability to recover is greatly increased.

Information from Stroke Journal Report, Feb. 2003, was used,with special thanks to Debi McGill, Editor in Chief, StrokeConnection Magazine.

Save YourselfSurvive a heart attack when alone by coughing

Let’s say you’re driving home alone after an unusuallyhard day on the job.You’re really tired, upset and frustrat-ed. Suddenly, you start experiencing severe pain in yourchest that starts to radiate out into your arm and up intoyour jaw.

You are only about five miles from the hospital nearestyour home. Unfortunately, you don’t know if you will beable to make it that far. You have been trained in CPR, butthe guy that taught the course did not tell you how to per-form it on yourself.

Many people are alone when they suffer a heart attack,and without help, the person whose heart is beatingimproperly and who begins to feel faint has only about 10seconds left before becoming unconscious.

However, these victims can help themselves by coughingrepeatedly and very vigorously.

A deep breath should be taken before each cough, andthe cough must be deep and prolonged, as when producingsputum from deep inside the chest.

A breath and a cough must be repeated about every twoseconds – without let-up – until help arrives, or until theheart is felt to be beating normally again.

Deep breaths get oxygen into the lungs and coughingmovements squeeze the heart and keep the blood circulat-ing. The squeezing pressure on the heart also helps it regainnormal rhythm.

Heart attack self helpmay enable heart attackvictims to get to get to aphone, and betweenbreaths, call for help – or toget to a hospital, even ifalone and driving. Youcould save your own life.

Information from HealthCares, Rochester GeneralHospital, was used, with spe-cial thanks to Bennie Hutson.

EDITOR’S NOTE: Not all on thejob injuries/illnesses are theresult of work-related acci-dents. As Alaska’s construc-tion industry workforce ages,the possibility of strokes and heart attacks occurringamong workers is very real.Knowing how to recognizesymptoms, and how to takeaction, could save lives.

The Alaska Contractor: Spring...

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