BuilderVOLUME 11

ISSUE 5NOVEMBER 2007

In This Issue...Project Spotlight p2AGC p3BIM p5Risk Management p6Milestones p7Supplier Showcase p7Labor p8Legislative p9Renovation p10Safety p12

COMING ATTRACTIONS

Dec. 11Builders Association

Annual MeetingFairmont Hotel, Chicago200 N. Columbus Drive

3-6 p.m. please see BIM Forum, page 4

The

Scaling The WallScaling The WallMembers Learn What Members Learn What

They Need To Know About They Need To Know About Building Information ModelingBuilding Information Modeling

BUILDING YOUR BUSINESS

Dan Klancnik (right) of C.G. Schmidt goes through the fi ner points of his presenation as (from left) Chuck Hardy of GSA, David Cintron Jr. of DAC Studios and Dave Weihing of Thornton Tomasetti look on. The Building Information Modeling Forum provided potential BIM users with the information they need to get started from companies and individuals already using the technology.

The 70 attendees at the Builders Association’s Building Information Modeling Forum came to learn how 3D modeling was being used for both big and small projects, and they weren’t disappointed on either front by Jim Davy of James McHugh Construction Company.

As part of the second panel of industry users of BIM, Davy related how he had learned the 3D modeling process from scratch, and how at this point in his career he’s used it for everything from Trump Tower to a playhouse in his back yard. In between, he related how he believes the technology brings advantages to any job, no matter what the scale.

That bit of experience, however, doesn’t mean there’s not more McHugh can do, according to Davy.

“We’re learning lessons every day on every

project we use it for,” he said. “The best advice I can give anyone is to educate the user.”

Education is what the Forum was all about, as industry expert Michael Kenig (Vice Chairman, Holder Construction Company) and others let attendees know how Virtual Design & Construction could impact their bottom line. His presentation dealt with the metaphorical wall between those who do use BIM and recognize its benefi ts, and companies that haven’t yet thought about using BIM. While BIM is building steam with contractors on both coasts and in other parts of the Midwest, contractors in Chicago have been slow to adopt the technology.

The Builders Association took the opportunity to help its members understand what BIM is and how it can help their business.

“It’s really starting to catch on like wildfi re,” said Kenig, who is recognized nationally as one of the experts on the topic. “We’re seeing that traditional methods are starting to be replaced

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T H E B U I L D E RT H E B U I L D E R

please see Healthcare, page 15

Association Members Come ‘Clean’Project Spotlight

A rendering of Hartgrove Hospital in Chicago, a mental health facility worked on by both Pepper Construction Company and Hill Mechanical Group this year. The mental health facility was one of many healthcare projects that Builders Association members took on this year.

BY LIZ HUMRICKHOUSE

“Clean rooms” are a unique and diffi cult specialty in the construction industry. When you think about healthcare facilities cleanliness comes to mind, and these places work hard to maintain the highest levels of sanitation. But what happens when a hospital needs to be renovated?

While all renovations involve certain complexities, those done in a hospital can be especially intricate. In fact, many construction companies will do the majority of their business in healthcare renovation because it is such a specialized type of work.

“Hospital work is some of the most complicated there is,” said Ray Wojkovich of Bulley & Andrews, LLC. “Mechanical and electrical systems are way more complicated. You’re looking at medical gas systems and isolation venting systems and CAT scans and MRIs.

“It helps to understand what takes place during the procedures, so that you can do the right kind of work.”

Possibly more important than having specialized medical construction knowledge is the ability to communicate with hospital staff. Because the facility continues to operate while renovations are taking place, it’s important for contractors to have open and clear communication with hospital management at all times.

“Communicating with maintenance and facility staff is a key component of a successful project. Tying into existing systems requires careful coordination with electrical, plumbing, medical

healthcare related, contractors have to take special precautions to avoid spreading infection or disease in a hospital.

“Negative air machines are used to keep a negative pressure in the work area so that dust is kept in your area,” Wojkovich explained. “It has fi lters in it and sucks the air through the fi lters, cleans it and it is discharged outside.

“We also use sticky mats, which are plastic mats at the exit/entrance doors and they pull the dust and drywall particles off of your shoes, so that you don’t track as much stuff into the hospital.”

Wojkovich further explained that all the sanitation measures put in place are mandated by the Illinois Department of Health Regulations, which helps to maintain the same standard of cleanliness throughout the healthcare industry.

In some cases, the FDA sets regulations for clean rooms, as well. The George Sollitt Construction Company recently did work at Loyola where it built a cellular therapy space. Sollitt’s Jim Zielinski said that the FDA has different classifi cations for how clean a space should be. Hospitals tend to be somewhere between a Class 1,000 and Class 10,000 space. A Class 1,000 space is ten times cleaner than the Class 10,000 space.

“At Loyola we did another class 1,000 space - that one had to go through a

Custom Contracting, Bulley & Andrews, George Sollitt Construction Reps Outline

Challenges Of Healthcare Work

gas, ventilation and mechanical piping systems,” stated Custom Contracting, Ltd. owner Leon LaJeunesse. “We merge into the day-to-day operations of a healthcare facility.

“If communication between the two groups is unclear or strained, the renovation can suffer. Oftentimes, however, contractors have to take a backseat to the needs of the hospital.”

According to more than one healthcare construction professional interviewed, it’s not abnormal for noisier construction activities to have to shut down if the job is in the proximity of an operating room that is in use. That can create the need for contractors to get creative in terms of where and when to get certain work done.

“We don’t really play a part in how the hospitals do their work while we’re working,” LaJeunesse added. “They have a master plan and the key is to make sure that the dates we commit to, we meet, because other projects downstream may be negatively affected.”

While scheduling and noise is a large concern for hospitals, cleanliness is quite possibly the largest one. Unlike a renovation to something non-

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AGC News

AGC Launches ConsensusDocsA201 Not Endorsed By Organization For First Time In 50 Years; A201 Not Endorsed By Organization For First Time In 50 Years;

Contract Document Expert J. William Ernstrom Lets Members Know Why At Fall MeetingContract Document Expert J. William Ernstrom Lets Members Know Why At Fall Meeting

OGLETREE DEAKINSAttorneys at LawConstruction Industry Group

Two First National Plaza, 25th Floor • Chicago, Illinois 60603P: 312.558.1220 • F: 312.807.3619 • www.ogletreedeakins.com

LIFTING SERVICE TO NEW LEVELS

Over 80 Builders Association members enjoyed breakfast and listened to a presentation on contract document matters that could impact their businesses.

BY ANDY COLE

As if contractors didn’t have enough to do, the new A201 standard contract document from the American Institute of Architects would add another job title for them, according to contract documents expert J. William Ernstrom.

“As a result of this document, you are all now certifi ed archaeologists and environmental experts,” said Ernstrom, referring to a provision in the A201 dealing with site conditions that shifts liability to the contractor for recognizing and dealing with human remains, burial markers or wetlands.

That provision is just one of many in the A201 that Ernstrom and other AGC documents experts felt shifted liability away from design professionals. As a result, the AGC voted unanimously not to endorse the contract, marking the fi rst time in 50 years that the AGC hasn’t endorsed the contract.

Members were given an in-depth analysis of both the A201 and the ConsensusDocs during the Builders Association’s Fall Meeting October 10 at the Hilton Garden Inn O’Hare. Through Ernstrom’s presentation, they found out how these recent contract document developments could impact their bottom line and the construction industry as a whole.

Ernstrom, Vice President and Strategic Major Project Advisor for Walsh Construction Group and also Counsel to the AGC’s Contract Documents Committee, hammered away at the A201 and its changes, pointing out that while the AGC had signifi cant input in the creation of previous contracts, the AIA made certain it wasn’t that way this time around.

While many things about the document alarmed the AGC, the main issues in Ernstrom’s eyes were provisions on inspecting fi eld conditions and labor disputes.

The fi nal draft of the A201 states that a “contractor shall promptly report to the architect any errors…discovered by or made known to the contractor.” While the 1997 draft stated that the contractor owed damages to the owner only when the contractor “knowingly” failed to report such errors, that language has been eliminated from the most recent draft.

Also under the A201 regarding labor disputes, contractors are entitled to time extensions only if those disputes were “unrelated to the project.”

While the AGC views A201 as an unbalanced document that shifts liability away from the architects, it believes it has helped come up with an alternative that evenly balances risks. The second half of Ernstrom’s speech dealt the recently released ConsensusDocs, a set of contract documents which he spent three years helping to create.

“I’ve been in the construction business 30 years,” he said. “(The creation of the ConsensusDocs) is the most important event I have been a part of in that time.”

The ConsensusDocs are 70 contract documents created through the participation of 20 groups representing owners,

please see Fall Meeting, page 13

Ernstrom

4

by something different.“It isn’t just something that’s for larger projects. You can get

some benefi t out of this on every project.”The Forum included local contractors, architects and owners

who are using BIM. In addition to Kenig and Davy, presenters included:

David Cintron Jr., DAC Studios, Ltd.Kristine K. Fallon, Kristine K. Fallon & AssociatesRobert Grupe, USGChuck Hardy, General Services Administration, Co-Chair of the Construction Users Rountable Process Transformation CommitteeJim Kamilis, Hill Mechanical GroupDan Klancnik, Virtual Construction Coordinator, C.G. SchmidtDave Weihing, Thornton Tomasetti

Hardy brought an owner’s prospective to the contractors and explained how Building Information Modeling can make a contractor attractive to owners and increase communication all the way around.

“It can be used on all levels,” Hardy said of the technology. “It can be used for analysis, safety and scheduling help. It goes beyond the issue of cost. It helps with information sharing and contingency.

“BIM is the reason why I’m seeing a lot more collaboration in the industry now than I’ve ever seen in my career.”

In addition, Hardy alluded to the “looming crisis in human capital” in the construction industry. BIM, he said, could be one way to produce better buildings faster, which would lessen the impact of any labor shortage.

Klancnik says his company was able to learn from early mistakes, and encouraged contractors considering BIM to learn from the miscues of the companies that tried the technology before them. The most important components, he said, were talking to the right people before the company even started and getting every project manager in the company trained in the technology.

Many of the panelists cited better communication as one benefi t of BIM when it is being used to its full potential. However, Kamilis - under whose watch Hill Mechanical has gone from no integration to 28 full-time users - stressed the importance of communicating before even trying to implement it.

“Management doesn’t really understand the terminology,” he said, underscoring the importance of fi rst time users to make management understand the terminology and the benefi ts. “Designers are, in essence, creating the drawings for the foremen, and you have to communicate as much as possible and keep everyone on the same page.

“It’s important to invest in training and it’s important to set

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realistic goals.”The upfront investment required to start using BIM is one

big deterrent for contractors, and panelists discussed when new users would see a return on that investment. Arranging for the original two-dimensional drawings to be outsourced and changed into 3D can take some of the bite out of the cost. C.G. Schmidt integrated BIM a little over a year ago and sends its drawings to a company overseas for 3D conversions, but Klancnik doesn’t recommend the strategy for everyone.

“The benefi ts are cost and quality,” Klancnik said. “There are drawbacks in terms of a language barrier, but that can be overcome. The company we work with does this kind of work all over and they’re very good at it.

“There is a risk in outsourcing the conversions, and it depends on the company. It’s not a one-size-fi ts-all sort of thing. You have to establish a relationship with a good company that consistently does good work. It can be hit-and-miss.”

Each presenter gave a fi nal word of advice for companies considering adopting the technology.

“The most important thing is to get the big boss at your company to buy into it,” Klancnik said. “Make him understand. In our fi rst year, we probably spent hundreds of thousands, but we saved hundreds of thousands, and we’ll continue to get those savings thanks to our initial investment.”

Kamilis said companies should know exactly what they want to do with BIM before diving into it, and Fallon’s suggestion was that companies should use a pilot project to see where they stumble and go from there.

From clash detection to intellectual property protection, those who attended this Forum were able to see BIM’s benefi ts and pitfalls, and get a better idea of what to expect when their company adopts this essential technology.

See the presentations from the Forum at www.bldrs.org.

BIM Forum, from page 1

Thanks To The Following For Sponsoring The Building Information

Modeling Forum:Autodesk, Inc.

Bentley Systems, Inc.Vico Software, Inc.

T H E B U I L D E RT H E B U I L D E R

Different Reasons, Same ResultV O L U M E 1 1 ; I S S U E 5V O L U M E 1 1 ; I S S U E 5

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“The Wall”FearsLegal

Other Fears

Lack of time

Costs

Softwarecomplex

Benefits?

Leadershipsupport

Little or No Experience

Don’t seeBenefits?

HaveExperience

See theBenefits!

Contractors In The Midwest Have Found Contractors In The Midwest Have Found Long-Term Savings And Effi ciency After Making Long-Term Savings And Effi ciency After Making

The Leap Into Virtual ConstructionThe Leap Into Virtual Construction

The “wall” that exists between those using BIM and those who haven’t taken to the technology yet, part of Michael Kenig’s presentation at the BIM Forum. According to Kenig, lack of support from company leadership is one of the main reasons contractors in the Midwest have been slow to adopt BIM.

It took years of planning for C.G. Schmidt of Milwaukee to feel prepared to take the leap into 3-D Modeling.

Once there, it took the company about fi ve minutes to realize it had made the right decision, according to Virtual Construction Coordinator Dan Klancnik.

“We began to see rewards almost immediately from having our Project Managers trained in the technology before we started to use it,” said Klancnik, who states that C.G. Schmidt has already been able to see a positive impact on its bottom line due to the use of BIM.

“We jumped into it head fi rst, but we made sure we were prepared. The best advice I can give someone who’s just starting to get into this is to train their people very well beforehand. There’s a big advantage to having everybody on the same page when starting an advancement like this. You need to have a team that’s dedicated to the process.”

Contractors on the East and West Coasts have been quicker to adopt Building Information Modeling technology than have their counterparts in the Midwest. That doesn’t mean that there are no examples of successful BIM usage in this part of the country. Reasons for the reluctance to apply BIM in the Midwest and in the Chicago area in particular vary. What isn’t variable is the opinion by a number of industry experts that contractors who don’t get in front of this technology will fi nd themselves behind the 8-ball when it comes to competing for jobs.

“It seems like a real battle getting contractors in this part of the country interested,” said Larry Filson of Walbridge Aldinger Company in Detroit. “I think the companies who have made that investment have been happy they did. It saves a lot of time and a lot of money in terms of catching errors before you make them.”

Building Information Modeling seemed like a natural transition for Walbridge Aldinger, which was heavily involved in lean construction before adopting the technology. Lean construction and Virtual Design & Construction have some overlap, and the advantages of both encouraged Walbridge Aldinger to make a $500,000 investment over four years to upgrade its system in preparation for BIM.

The transition hasn’t been perfect, but Filson points out that as more companies try BIM, the newer companies to the technology have more

cases to learn from, which can help them start on solid ground.“There are several issues that still need to be addressed,” he

said. “In many cases, there’s a lack of training in the technology on the part of the designer. There’s a lack of suffi cient infrastructure, and you need computer systems that are set up in such a way that they handle potentially huge fi les.”

Competition was one factor driving the growth of Building Information Modeling on the East and West Coasts. Once one company started to use the technology, its competitors felt as if they needed it.

Self-sustainability and other factors have played a role in the technology being slow to catch on in the Chicagoland area. According to most industry observers, however, contractors in this area will need BIM to compete sooner rather than later.

“The owners are pushing it, and we’re quickly getting to a point where contractors everywhere will need to realize how critical this is to success,” said Gilbane Building Company’s Kevin Bredeson of BIM. From his Milwaukee offi ce, Bredeson oversees Gilbane’s Building Information Modeling operations all over the country.

“The one thing I would say to companies starting to use BIM is that they need to be ready to embrace it all the way. You aren’t going to get the full advantage of it right away, but it’s not something you can go into half-speed. You need executive-level support and the right staff. Those two things combined, along with collaboration with designers and owners, can get you to a place where you’ll see results.”

Companies thinking of using BIM may be concerned that it’s too different from what they’ve done in the past. J.F. Ahern Company of Fon du Lac, Wisconsin has been a respected mechanical and fi re protection contractor since the late 1800’s, but a long tradition of doing things one way didn’t stop the company from approaching new technology.

Despite the necessary commitment, Gary Hunter of J.F. Ahern feels that Virtual Design & Construction is worth the investment

please see BIM, page 15

“You aren’t going to get the full advantage of it right away, but it’s not something you can go into half-speed. You need executive-level support and the right staff.”

-Kevin BredesonGilbane Building

CompanyOn What Companies Should Know Before

Starting BIM

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T H E B U I L D E RT H E B U I L D E R

Construction Risk: Changing Perspectives

please see Risk, page 13

BY CURT MARTIN

Has Risk Management as a discipline typically focused on casualty and property damages – risks that have been traditionally insurable? While the academic literature on risk management is broadly applicable to many risks, many of us associate this discipline with insurance.

The AGC’s National Risk Management Committee traditionally followed suit – attended heavily by insurance professionals and focusing its annual meeting on insurable risks and the insurance products that were available to contractors.

That perspective is changing. As one attending CEO observed, “Risk management is no longer an administrative function. It is a core principal activity affecting profi tability.” The Committee’s 2007 sessions featured contractor strategies for identifying and managing risk in construction.

Why the shift? Pick your reasons from among the following:Recognition that most construction risks have always been uninsurable;Recognition that insurance coverages continue to erode (particularly in additional insured and completed operations categories); orIncreasingly sophisticated construction executives.

Whatever the reason, it is increasingly clear that managing construction risk allows companies to distinguish themselves from their competitors and improve profi t margins.

CEO Perspectives On Risk ManagementThe AGC invited three CEO’s to provide their perspective

on Risk Management. Each panel member related their risk management practices directly to their larger business objectives.

Take the views of the CEO of one Pacifi c Northwest large multi-family residential builder. Facing problems with plan quality, he said that a few years ago he realized that “we were either going to have to start hiring lawyers or start hiring architects.” The company now has three architects on staff, reviewing drawings for constructability and water-related details.

Or consider a large commercial/highway builder’s CEO, who has his team identifying risks that the company isn’t willing to take. He is training his business development people the discipline of considering these risks in their marketing decisions.

The CEO of a large design-builder has his business development team report on potential projects using a standard questionnaire which includes potential risk.

This fi rm categorizes or evaluates with a matrix on likelihood of occurrence and potential severity.

These corner-offi ce views accept that risk can’t be avoided, and can’t always be transferred. These CEO’s stress that risk management includes identifying, accepting and managing risk, through discipline and education.

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BUILDING DEFECTS: CAUSE AND PREVENTIONBecause the industry faces increasing challenges of building

defect claims, the AGC invited comments on the cause and prevention of building defects. Two presentations were particularly noteworthy, from two very different angles – a large inspection fi rm and a large general contractor.

The inspector’s view: Based on more than 2500 construction projects, this inspection fi rm leader opines that defect claims often result from disappointed expectations which are no fault of the contractor. Builders need to be concerned not only about what the plans say but about how those plans may be misrepresented in promotional documents.

The inspector offers 7 “deadly sins” of construction that are worth consideration. These are:

Design issues;Communications (verbal and/or by mobile phone) invite misunderstandings;

Builder’s knowledge about project scope (particularly trade contractor scope);

Lack of processes (contrast building with the automotive or manufacturing industry – if they found a consistent defect in a product, they would develop or change their processes);

Customer service after completion (or lack of it);Lack of control over claims; andLack of data to demonstrate quality of work during the process

A CONTRACTORS PERSPECTIVEA large national contractor offered a different view on the

cause and prevention of building defects. His company divides the work into four phases (preconstruction, construction, closeout, and post-construction). They view pre-construction as the phase where defects are most easily avoided or corrected.

This contractor focuses pre-construction planning on project selection and budgeting. Project selection offers the opportunity to evaluate projects against a series of qualifi cations, including the experience of other team members, project materials and availability of qualifi ed trade contractors.

“Budgeting” for this contractor includes checking the documents for quality and completion, constructability reviews, functionality reviews, peer review, moisture protection planning, scheduling, and subcontractor selection.

They view post-construction as an opportunity to mitigate problems. Each region has an individual who is responsible for post-construction. This is often someone who wasn’t involved in project construction. He/she is responsible for customer relations and proactive responses which facilitate resolution of problems.

ConclusionConstruction is a risky business. And most of the risks faced

by general contractors and trade contractors aren’t insurable. Risk management techniques should go beyond insurable risks, and that’s where your AGC National Risk Management Committee

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A Comprehensive Report from AGC’s 2007 Risk Management Committee Meeting

Guest Article

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M e m b e r M i l e s t o n e s

Supplier Showcase

The products and services offered by the Builders Association’s Supplier members are among the best in the area in their fi elds. With their asso-ciation membership, these companies support the Chicagoland construction industry.

The Builder will highlight suppliers in the Supplier Showcase, which will feature comments or information on a construction issue from those mem-bers.

This issue’s contributor commented on recent changes in modular con-struction.

John EmersonMcDonald Modular Solutions

In light of a recent ENR article on modular construction in the area torn apart by Hurricane Katrina, Emerson wasn’t surprised by articles indicating those temporary homes and businesses could have a very long lifespan.

“What we’re doing is conforming to the same building code, if not stronger, than what is being built with 2x4’s,” he said. “Changes in the suspension under-neath these units in particular makes them stronger, and these can maintain a long life.

“These used to be made with 2x3’s and 2x4’s with lower quality lumber and they were only being used for tem-porary offi ces. Now, there’s a lot more steel and they’re being made to last 20 or 30 years and being moved from job to job.”

McDonald Modular Solutions1560 Aurora Avenue Lane

Aurora, IL 60505630.966.0242

www.mcdonaldmodular.com

Case Foundation Company was awarded the fi rst contract for The Chicago Spire, the 2,000-ft-tall mixed residential building at 400 N. Lake Shore Drive. Case will begin the project by excavating a 78-ft deep cofferdam that will serve as the foundation for the tower. The Spire is scheduled to be completed in late 2010, while Case’s part of the project will conclude in 2008.

Bill Krauss, of S.G. Krauss Company, was promoted to President.

James McHugh Construction Company and Hill Mechanical Group are both contractors for the Trump International Hotel & Tower project.

Hill is serving as the mechanical contractor while McHugh is the concrete contractor. McHugh was featured, along with Trump Towers, on the Discovery Channel’s “Build it Bigger” show, which premiered September 19th.

Valenti Builders was featured in the May/June 2007 issue of “Commercial

Builder/Architect” Magazine. The article emphasizes Valenti’s broad history in building and renovating religious institutions, as well as highlights their long list of other notable Chicago construction projects.

W.B. Olson, Inc. was named a fi nalist for the Chicago Building Congress 2007 Merit Award for their work on a Waukegan Park District building. The Community Center is environmentally friendly. W.B. Olson included skylights and large glass windows in order to conserve energy and incorporate plenty of natural light in the building. These features also aid in natural ventilation as well as increase productivity.

ENR ranked the top 50 Green Contractors in their September issue. In order to make the list, contractors needed to bring in at least $8.96 billion in revenue, or 15.3 percent of their total revenue. Opus North Corporation ranked at number 20, while Pepper Construction Company came in at 26.

Pepper Family Honored By Hull HouseIn late September, the Pepper family

and Pepper Construction Company received the Jane Addams Legacy Award. The Jane Addams Hull House Association’s Real Estate Leadership Council rewarded Pepper because of its continued commitment to the Hull House Association.

“We do quite a bit with Hull House. We built out their offi ces for no fee. It’s a great organization and we’re happy to be associated with them,” said David Pepper, Pepper Construction Company CEO and Builders Association Vice Chairman.

The event, which was hosted in the

Colonnades of Soldier Field, was set up to honor Pepper Construction Companies and the Pepper family.

Pepper remarked that, “It was obviously a real honor. This was the fi rst time the award’s been given out by the real estate community, and over 500 people showed up, which I never expected. The really nice thing was to see the support from the other Builders Association contractors who were there.”

Pepper Construction Company has been an important participant in the Chicagoland construction and real estate industries since 1927. Today, Pepper

Construction has operations in Texas, Ohio and Indiana, with the headquarters still fi rmly rooted in Chicago. In its 80th

year, the company employs over 1,000 people.

The Jane Addams Hull House is an association that gives aid to people living in the Chicagoland area.

The Builders Association is pleased to report that our Chief Executive Offi cer, Al Leitschuh, was selected as the

Treasurer of the AGCA Executive Leadership Council (ELC). The ELC is made up of the CEOs of almost 100 construction

industry associations representing over 20,000 construction companies in the United States.

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T H E B U I L D E RT H E B U I L D E R

Labor News

Coming Up ShortFMI’s Research Services Group Gives An Expert

Look At The Coming Labor Shortage; First In A Series

BY ARTHUR HEIMBACH, SABINE HOOVER, NICK SCHUBERT

AND NICK HIERFMI

Signifi cant indications of coming labor shortages throughout the construction industry suggest that there will be a particular shortage of skilled workers and qualifi ed management personnel. While fi rms in the construction industry are implementing several strategies to stem the shortage, it is likely that severe spot shortages will occur nonetheless. Indeed, spot shortages may already be a reality for some construction employers.

However, in addition to curtailing spot shortages, labor shortage mitigation strategies may actually serve to increase profi tability.

The Forces Of ChangeA host of socio-economic and political

variables will shape the supply of and demand for the U.S. construction labor force in the years leading up to 2012. Some of the key domestic drivers will include population growth; the aging of the workforce and population as a whole; immigration; education trends; the aging of major portions of the nation’s critical infrastructure; and continued rapid emergence of new technologies, to name but a few. In addition, emerging economies in countries like China and India are likely to infl uence the U.S. economy and the global labor market as well, which will lead to changes and adjustments in the U.S. construction labor force.

With the wide range of specialties and positions that exist in the construction industry, the areas experiencing shortages and oversupply are expected to vary considerably. The six-year time horizon (2006–2012) for our study is simply based on the availability of data from the U.S.

Census and Bureau of Labor Statistics (BLS), which both use that timeline as the furthest horizon-point of employment predictions.

We will start with the big picture and then zoom into more detailed situations.

Supply And Demand For Construction Labor

The labor force in general is an informal mechanism where demand for and supply of labor are tightly interconnected with one another. The supply of labor includes all those who are either working or looking for work and depends on the availability of working age people, local and national economic conditions, societal values, geography, and climate, among many other variables.

Conversely, demand for labor is dictated by demand for consumer goods and the related capital goods, export demand, and government policies, among other factors. These demands are strongly interrelated as are the subsequent demands for labor. An increased demand for medical services can lead to increased need for hospitals, which increases the need for construction workers at the same time it increases the need for more hospital staff and the factory workers to construct the equipment that supports the hospital.

The need for labor is also not typically homogeneous across the nation; some regions may be experiencing shortages while others are experiencing surpluses. Besides the obvious variations in construction demand that cause these differences, variations in demand also occur due to skill-need mismatches, immobility of the labor force, and regional shifts in perceptions that increase or decrease the interest regarding a given occupation. We will discuss some of these issues in more detail as they pertain to specifi c occupation shortages within the construction industry.

Demand For Construction Labor Through 2012

The federal government’s forecasts for employment constitute expected demand for labor. The U.S. BLS releases medium-

term employment projections every two years, with the most recent comprehensive data being from 2002, and projecting out 10 years to 2012.

The construction industry typically accounts for about 5.1% of the nation’s employment, a proportion that is forecasted to remain constant in the foreseeable future.

From 2002 to 2012, the BLS expects that the construction industry will be the only goods-producing sector in which employment will grow, adding approximately 1.1 million jobs during this period — an increase from 6.7 million to 7.8 million jobs, at a 1.5% annual growth rate (16.4% gain overall).

Although this represents a dramatically slower rate of change than that experienced between 1992 and 2002 (about half as fast, as this period saw growth of 2.1 million additional workers during the same number of years, growing from 4.6 million to 6.7 million at a 3.8% annual rate and a 45.7% growth rate overall), the construction workforce is expected to grow at a faster rate than the rest of the U.S. workforce (estimated at a 1.1% annual growth rate and an 11.7% increase overall).

At this rate, in 2012 the construction industry will rank fi fth among the economy’s top-10 largest sources of employment growth, following education and health service, professional and business services, leisure and hospitality, and retail trade.

The Construction Labor Research Council predicts that through the years 2005 to 2015, the annual need for new entrants of craft workers into the construction industry will be 185,000 persons and that the need will be almost evenly divided between growth and replacement.

Given that this estimate is an average for a 10-year period, it follows that the volume of annual need will be less than the 10-year average of 185,000 during the fi rst half of the period and greater toward 2015.

please see Labor, page 9

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While the Illinois General Assembly needed to work overtime to fi nish the state’s budget, the Builders Association and other industry groups didn’t need to work that long to help strike down the biggest threat to construction companies in this legislative session.

The Gross Receipts Tax was the most publicized of the four bills that would have impacted the construction industry in front of the Illinois lawmakers. Essentially, the bill would have applied a .85 percent tax on all gross billings made by Illinois contractors. In addition, Illinois material suppliers and distributors would have been subject to a 1.95 percent Gross Receipts Tax.

The Builders Association opposed the bill, which did not pass. The GRT would have greatly increased the cost of construction over the .85 percent tax.

A proposed companion bill to the GRT, the Illinois Covered Act, would have applied a payroll tax to all Illinois employers with 10 or more employees. Employers would have been taxed at a rate of three percent of total wages paid to employees.

The Builders Association was also opposed to House Bill 555, Construction Indemnity Hold Harmless, which did not pass. According to the bill, any time a subcontractor’s employee was injured on a jobsite and fi led suit against the GC/CM, there would be a dispute with the subcontractor’s insurer about whether or not the GC/CM was owed a defense.

A large concern with this bill was that it would cause confusion about who is responsible for what on a jobsite. Also, had this bill passed, the insurance premiums of the GC/CMs would have been dependent upon whether or not the subcontractor’s insurer defended liability claims.

The Builders Association adopted a neutral stance on two bills that passed. The fi rst to pass was House Bill 1795, Worker Misclassifi cation. The goal of this bill is to reduce the amount of

Legislative Review

employers who commit fraud by misclassifying their employees. Often these employees are classifi ed as independent contractors in order to avoid paying for workers compensation, among other taxes.

The Builders Association was neutral in regard to HB 1795 due to minor concerns with the bill’s language and the potential misclassifi cation of legitimate subcontractors and owner/operators.

The law will go into effect January 1, 2008 and will include a $1,500 penalty for the fi rst violation, $2500 for a repeat violation, and a suspension from doing state work for four years for any further violations.

The fi nal bill was House Bill 743, Contractor Prompt Payment Act. Many contractors felt that this bill, which was passed into law, might be hard to enforce.

Essentially, the bill states that on construction jobs where work has been completed in the manner agreed upon the owner must pay the contractor within 15 days of payment approval. Accordingly, the general contractor must pay subcontractors within 15 days of receipt of payment. Subsequent late payments will be charged an annual interest of 10 percent.

Many contractors remained neutral on this law because they are routinely paid in a timely manner or routinely pay their subs in a timely manner. Others felt that the law was not easily enforceable and would force subcontractors to go through a huge amount of legal action in order to collect from a late paying general contractor.

The bills that would have most affected the construction industry in a negative way did not pass. Those that did - HB 743 and HB 1795 - may not affect a large amount of Illinois contractors and therefore will not effect too much change in the construction industry.

Lawmakers Vote For Prompt Payment; Spike GRT

please see Labor, page 14

Labor, from page 8

Drivers Of Construction Labor Demand

As of 2004, the construction industry employed approximately 10.7 million workers to support $916 billion in put in place construction. The combined effect of our population growth; our economic strength and the ever-present needs for repairing and replacing our worn out infrastructure; and how our local, state, and federal governments respond to these changes, will be the primary determinants of the future demand for construction labor.

Population GrowthOne of the main reasons for the

increasing demand for U.S. construction, and the subsequent demand for

construction workers, is population growth. The Census Bureau predicts that the U.S. population will increase by over 9%, from 288 million to 314 million, between 2002 and 2012. This is a relatively minor increase in comparison with the 13% increase experienced in the preceding 10 years.

Most of this growth will occur in the South and West, with California, Texas, and Florida accounting for 46% of the nation’s total population growth. Each of these three states is likely to gain more than 12 million people by 2030.

Economic GrowthOverall, the U.S. economy remained

strong in 2005, despite the surge in energy prices and devastating hurricanes, with

GDP increasing at an annual rate of 4.1% in the third quarter of 2005 (Bureau of Economic Analysis). Assuming that the Consumer Confi dence Index continues trending upward (albeit in a rather erratic manner), consumer spending is likely to drive a strong construction economy in the future.

Business spending is poised to take over as the main driver of the construction economy. Currently, the unemployment rate remains below historical averages at 4.9%, and employment remains healthy despite being a little lower than most economists would like. It averaged around 200,000 per month in 2005, enough to absorb new workers. Housing starts are expected to slow, but rising material and

10

In With The Old

Home Again: Quick Renovation Fire Allows Residents To Return To S. Wabash Building

Note: The Builder hopes to make stories about renovations a regular Note: The Builder hopes to make stories about renovations a regular feature. If your company has completed or is working on a unique reno-feature. If your company has completed or is working on a unique reno-vation project that other members could learn from and you’d like to see vation project that other members could learn from and you’d like to see it featured, contact Andy Cole at 847.318.8585.it featured, contact Andy Cole at 847.318.8585.

T H E B U I L D E RT H E B U I L D E R

BY LIZ HUMRICKHOUSE

Most people never expect their home to burn down, as was the case with the residents of the Wirt Dexter building at 618 S. Wabash.

However, when it does happen most people probably aren’t expecting to move back into an exact replica of the place they left. But thanks to J. J. Duffy Company, six months and a few million dollars later this is exactly what the displaced residents got.

J. J. Duffy renovated the residential building only a year and a half after it was built. They were the original builders of the Wirt Dexter building, so when it was fi re damaged in October 2006 they were called back to do the renovations.

“The building next door caught on fi re right after ours was occupied,” said Paul Stolzer, Director of Business Development

for J.J. Duffy. “Certainly, there was no one that could do a better job renovating our building than we could. We had the advantage of knowing where the wires were and all of the other special challenges in the building since we are the ones who did the original work.”

The Wirt Dexter building is home to 169 low income residents, and when their building was fi re damaged they were forced to move out for six months.

“The actual residential units weren’t damaged, but because there was no heat in the middle of December all the residents were displaced,” explained Mike Mozal, President of J.J. Duffy Company. “Everybody was motivated to get the residents back into the building.”

While the residential units in the building did not sustain any structural or fi re damage, the administrative offi ces in the rear of the building were completely destroyed, explained Nicholas Wiedl, Senior Project Manager for J.J. Duffy. He added that all of the mechanical equipment on the roof was damaged.

please see Renovation, page 11

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Renovation, from page 10

Even though the building only sustained minimal damage - between 10 and 15 percent of the total building - J.J. Duffy had a lot of structural and mechanical problems on its hands. Besides the damaged mechanical equipment on the roof, the crew also had to repair a destroyed elevator shaft.

“The most time consuming aspect of the project was repairing one of the elevator shafts,” stated Wiedl. “The building next door was lined up next to the elevator shaft, and it was completely crushed when the walls collapsed. It had to be completely replaced.”

Mozal mentioned that another time consuming part of the project was replacing some of the structural steel. He said, “Engineers had to walk around the back of the building and fi gure out which beams had to be replaced since the offi ces were pretty much destroyed.”

Because the building was damaged in the middle of winter, the renovation held some unique diffi culties. One of the biggest problems the construction crew faced was locating all of the damaged pipelines in the building.

“Unfortunately, we had boiler heat, so we had to go around and fi nd the pipes that weren’t already drained and replace the frozen ones,” Mozal said. “We had to test all the boiler lines to make sure they weren’t broken.”

The crew faced tremendous pressure in completing the renovation quickly. Because the building is home to low income residents it was imperative that they be able to move back in as soon as possible.

The Chicago Christian Industrial League (CCIL), one of the largest non-profi t agencies for the homeless, manages the South Wabash building. The CCIL provides affordable housing to

J.J Duffy’s renovation of the Wirt Dexter building at 618 S. Wabash.

residents who meet the requirements of having at least one year of sobriety, six months of employment, and are able to prove an annual income.

“What was unique about this project was that we were working with the CCIL and that we had to move quickly so that these residents weren’t displaced,” Stolzer explained.

Because of J.J. Duffy’s quick work, all of the residents were able to move back into their apartments in May. The building, composed of all single resident units, provides 24-hour security, a rooftop garden and an exercise room.

“These are low-inccome residents,” Stolzer said. “If they didn’t have that place they might be out on the streets.”

If you’re interested in your company’s name reaching over 500 desks at the offi ces of the best contractors and subcontractors in Chicagoland, advertise in The Builder in 2008. Editions will be published in February, April, June, August, October and December. For more information or to advertise, contact Andy Cole at 847.318.8585.

Your Ad Here

T H E B U I L D E RT H E B U I L D E R

512

Safety News

New Rules For Industrial Vehicles

BY NANCY HAUTEROSHA

A 44-year-old construction worker was killed in May of 2002 when a 36-inch-wide bucket weighing more than 1,000 pounds detached from its quick release coupler and fell from an excavator, landing on him as he was working in a trench.

The victim and another worker had been in the trench preparing it for a pre-formed concrete manhole that they were about to install. Their supervisor (the excavator operator) sat and waited in the excavator, with the engine running, and lifted the bucket a few feet above ground level so the workers could fi nish preparing the site. The second man in the trench had just turned away from the victim when he heard a “click” and turned back to see the bucket fall. He attempted to move the bucket, but could not. He and the excavator operator used the excavator and a chain to remove the bucket and then called for help. The victim was pronounced dead at the scene upon arrival of emergency medical workers. The cause of death was listed as multiple blunt force injuries.

In 2005, there were 24 Powered Industrial Vehicle related fatalities within OSHA’s Region V jurisdiction. In 2006, this number of fatalities increased to 30. As a result, in October of 2006, OSHA established a Local Emphasis Program (LEP) for Powered Industrial Vehicles (PIV). The goal of this LEP is to reduce PIV fatalities. Although forklifts remain the biggest safety risk and are the main focus of the LEP, other PIVs are included. These other PIVs include dump trucks, excavators, back hoes, front end loaders, scrapers, graders, semi/delivery trucks, skid steer loaders and bobcats. Most of the fatalities from PIVs were caused by being struck by, caught in-between or a fall from elevated platform. Two deaths were caused from the vehicle falling off jacks and crushing the maintenance employees. According to the National Institute for Occupational Safety and Health (NIOSH), “In the United States, 1,021 workers died from traumatic injuries and over 200,000 others were seriously injured in forklift related accidents from 1980 to 1994.”

The following is a list of precautions to help eliminate hazards that have attributed to PIV fatalities and injuries. This list is based on PIV accident cases from the past years. OSHA compliance offi cers will look for these hazards while conducting enforcement inspections.

ForkliftsEquipment and training under OSHA Powered Industrial Trucks (PIT) standard: 1910.178Truck and traffi c control and controlling speed of PITsPowered industrial truck driving – Note that tipovers occur most frequently when the truck is driven in reverse and turned with mast elevated.Seat belt useFall protection tie-offs for order picking at heights in

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warehouses to prevent fall deathsMaintenance practices – blocking/cribbing when a lift is jacked up to prevent crushing deathsMaintenance practices – blocking mast and upright when working around mast to prevent caught between deathsDock safety program to prevent struck by/crush by deathsUse of approved lifting platform secured to forks to prevent fall deathsFor open lifting platforms used in warehouse stocking, use of appropriate tie-off fall protection to prevent fall deathsLifting carriage amputation protection (chains/moving parts)

Dump Trucks:Driver and worker communications when backing a truck to prevent struck by vehicle deathsBackup alarmsHigh visibility clothing for pedestrian employeesPowerline program if driving with bed raised to prevent electrocution deaths – Maintain a minimum distance of 10 feet between any part of the PIV load and over head power lines.Maintenance – block raised bed to prevent crushing deaths if hydraulics activated or fail (if bled or punctured)

Excavators and Back HoesPrevention of overhead loads to prevent struck by load deathsSwing radius protection to prevent caught between deathsOperator and pedestrian worker training and communication to prevent struck by deathsHigh visibility clothing for pedestrian employeesChains and rigging for lifting loads to prevent struck by load deathsProhibit riding in the bucket or on the side of the excavator Power line program to prevent electrocution deathsQuick coupler program to prevent struck by excavator bucket deaths

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please see OSHA, page 15

13

Fall Meeting, from page 3

V O L U M E 1 1 ; I S S U E 5V O L U M E 1 1 ; I S S U E 5

The Builders Association Would Like To Thank The Following Companies For

Sponsoring The Fall Meeting:Just Rite Acoustics

Pepper Construction CompanyHilb, Rogal & Hobbs

Ryan Companies US, Inc.

Risk, from page 6

insurance professionals, contractors and subcontractors. Through the input of the different groups, the AGC feels it has been able to create a set of documents that equitably balances liability.

The ConsensusDocs are available to AGC members through

subscription mode or meter mode. A subscription allows your company to print as many contracts and forms as you wish in a one-year period, while meter mode requires an initial deposit of $200 and the account is debited with each contract or form used. Under meter mode, a user would have to purchase a separate copy of the document for each subcontractor it wished to give the contract to.

For more on the A201, the AGC’s objections to it and the ConsensusDocs, visit the Builders Association’s website at www.bldrs.org and view PDFs of the presentation materials from the meeting.

is headed as well.The Committee’s record attendance (50% over 2006 record

levels) attests to the industry’s interest in risk management. The discussions reported above refl ect the industry’s interest in managing risk. They are just snapshots of the 2007 Committee proceedings; they don’t necessarily represent the state of the industry or best practices. But they do inform us that leading contractors are using risk management practices to differentiate their companies and improve their company profi tability.

This article was fi rst published in Cornerstone, a quarterly publication of the Houston Chapter of the Associated General Contractors of America, Inc.

Curt Martin provides legal and consulting services to the construction industry through his Houston law practice and through Construction Resolutions, LLC, using his background as a construction lawyer and as a construction executive. Contact Curt at Curt@Construction-Counsel.com or Curt@Construction-Resolutions.com.

AGC, AIA Trade Letters Over ContractsAs related to Builders Association members through the

Builder Blast, the AGC’s non-endorsement of the A201 standard contract document provoked a reaction letter from the American Institute of Architects.

AGC Chief Executive Offi cer Stephen E. Sandherr sent a letter to the AIA and outlined reasons for the non-endorsement in AGC press releases. Those reasons included:

The document fundamentally provides the architect excessive responsibility without corresponding liability While the AIA did respond to some of the AGC’s comments, there was not a true collaboration in developing this document AGC was not allowed to suggest specifi c provisions. AIA made it clear they were not negotiating terms Several provisions inappropriately shift risks to the contractor and other parties outside of the design community Specifi c provisions include new requirements for contractors to request fi nancial information from an owner and new deadlines to dispute initial decisions New liability exposures when operating under owner-mandated means and methods, as well as when encountering hazardous materials or wetlands Overall, this document no longer positively serves the industry

The AIA responded with a letter speculating about the AGC’s motives, and sent a release to its membership claiming the AGC hadn’t provided reasons for turning down the A201.

That release included the following passage in regard to the ConsensusDocs:

“Without the involvement of the designers, these agreements

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can hardly be said to refl ect ‘Consensus’...it is unfortunate that the AGC has allowed current business interests to prevent it from voting to endorse A201-2007...”

In a response to the AIA, Sandherr sent a letter to the AIA indicating that while he expected them to be disappointed, he wasn’t prepared for them to assign a motive to the AGC’s actions that was far from the truth.

“At the December 9, 2004, organizational meeting for the ConsensusDocs program, AIA’s then Chief Operating Offi cer declined the invitation to participate further in the discussions citing ‘the potential impact on AIA’s signifi cant revenue’ from your documents program,” Sandherr wrote.

“What truly surprised me throughout this process was the lack of support within AGC for endorsement of the AIA document... I can assure you, having had the pleasure and the benefi t of working with AGC members for over 20 years, they made a decision on what was best for their business with no regard for how it impacted our business.”

The ConsensusDocs debuted on September 28. J. William Ernstrom of Walsh Construction, who gave a presentation at the Builders Association’s Fall Meeting, was quoted in the April 2 edition of ENR magazine as saying “The AIA 201 documents are going to come very soon as a second choice to the consensus documents.”

514

T H E B U I L D E RT H E B U I L D E R

Labor, from page 9

labor costs, homebuyer upgrades, and increases in the average size of homes will push residential put in place construction spending higher in the near future.

Aging InfrastructureFurther, the construction industry is likely to continue to

experience high levels of demand fueled by the roughly $1.5 trillion that will be spent on construction and infrastructure renewal projects in the U.S. in the next fi ve years. The Bureau of Transportation Statistics (BTS) states that the average age of bridges in the U.S. is approximately 42 years old, with an average year of construction of 1963 for rural and urban structures. Today, more than 160,000 bridges are structurally or functionally defi cient (BTS, 2005). The U.S. Department of Transportation (U.S. DOT) projects that the annual cost to improve and maintain highways and bridges through the year 2020 will be $106.9 billion for improvements and $75.9 billion for maintenance (U.S. DOT, 2002).

With Congress passing the new $286.4 billion highway bill (SAFETEA-LU) in 2005, construction put in place for highways and streets is expected to increase rapidly over the 2004 to 2009 period.

Between 2003 and 2008 (not as far back as 2002 nor as far away as 2012), FMI expects spending on the put in place construction of bridges, heavy/highway, tunnels, dams, mass transit, high-rise building (20 or more stories), and water/wastewater to grow by a healthy 30%. The percentage gain from 2002 to 2012 will be even greater.

As for domestic transportation infrastructure, water and wastewater systems are in dire need of repair and expansion, too. According to the U.S. Environmental Protection Agency, aging wastewater management systems discharge billions of gallons of untreated sewage into U.S. surface waters each year. National investment requirements are estimated at $390 billion over the next 20 years to replace existing systems and build new ones to meet increasing demands.

However, Congress just cut funding in 2005 for wastewater management — for the fi rst time in eight years. The current administration has proposed a further 33% reduction, to $730 million, for FY06, despite the poor physical conditions of many of the nation’s 16,000 wastewater treatment systems (American Society of Civil Engineers, 2005).

From 2002 to 2012, FMI estimates that spending on put in place sewage and waste disposal will increase by 82% and that put in place expenditures for water supply construction will increase by 55%.

Net Effect on Expected PIPFMI’s estimates for current dollar put in place construction for

2012 is $1.74 trillion, roughly double the 2002 fi gure of $870 billion. Adjusting for infl ation at a conservative level of 3.0% per year, FMI’s numbers suggest that the expected workproduced output in 2012 will be closer to 50% greater than that in 2002. Given the DOL’s estimate that the construction workforce will increase by about 16% during this time, it is reasonable to expect

severe shortages relative to the potential demand.

External Factors Impacting The Supply Of Construction Labor

Whether the industry will be able to meet the expected demand for construction labor, particularly for skilled labor and management positions, is not completely clear. Several factors are affecting the size and nature of the labor force in general as well as the construction workforce.

Insuffi cient Age-Appropriate CandidatesNumerous sources have noted an expected shortage to occur

in skilled labor due to the impending retirement of the bulk of the skilled labor force and the lack of new recruits available to fi ll the void. This doesn’t include providing the additional new workforce numbers needed to meet the expected growth in demand.

For one, the Construction Labor Research Council (CLRC) states that the construction industry in 2005 has more craft workers in their prime working years (ages 25 through 44) compared to other industries; yet, these workers tend to leave construction at an earlier age than do their cohorts in the other industries (see graph). This situation highlights the concern for the upcoming loss of workforce due to impending retirement.

The fi rst wave of baby boomers is turning 60 now, and as the bigger age groupings start crossing the retirement line each year, the over-60 group will grow rapidly. By 2030, more than 25 states will have doubled their 65 and older population compared to 2000.

According to a study conducted by the Construction Industry Institute, the number of young people entering the construction workforce will continue to decline. During the fi ve years from 2002 to 2007, approximately 4.4 million more youthful men (aged 15 to 24) will enter the working ages (e.g. a 15 year-old in 2002 would be 20 years old and in the working ages in 2007) than working men (in the craft-retirement ages of 50 to 59) will be leaving.

During the fi ve years from 2007 to 2012, that surplus drops by 40%, to 2.7 million. During the fi ve years from 2012 to 2017, that surplus drops again by 67%, to just under one million.

It only follows then that even if the proportion of that number choosing construction were to remain the same, there will be fewer “bodies” coming to the industry.

Workforce Age Distribution-2003Percent

0

5

10

15

20

25

30

35

16-24 25-34 35-44 45-54 55 & Over

All Industries

Construction Crafts

Source: CLRC, Craft Labor Supply Outlook 2005-2015, 2005

Solutions To Your Labor Problems.Contact Denise Herdrich At 847.318.8585.

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certifi cation process with the FDA,” he said. “The FDA relies on Loyola and their consultants, who measure particulate matter, take a sampling and provide the FDA with results.

In addition to the FDA’s regulations for clean spaces are the hospital’s own rules regarding the control of infectious disease. Usually, specifi c contracts are drawn up prior to the start of construction in order to make sure that all sanitation guidelines are followed.

Most workers will be required to gown up at some point, and all of their tools will have to be disinfected regularly, as well as the materials they are working with.

“Each employee has to go through training and sign a document,” Zielinski stated. “It’s in the contract that you must adhere to these rules. If someone is violating these rules we have the legal documentation to remove them from the jobsite.

“The other thing that we had to do at Loyola was assemble the duct work in a separate room. In that case, the workers were armed with individual dust busters and we had to bring in individually sealed and numbered ductwork into that separate room.”

LaJeunesse, Wojkovich and Zielinski agree that the most important aspect of working in a healthcare facility is controlling the spread of disease.

“People with defi cient immune systems are susceptible (to infectious disease),” Zielinski said. “For instance, it’s always good practice to never eat on a jobsite because that brings mice around, but in a hospital even a few crumbs of food can turn into spores, which can be a problem.”

All of the extra work that healthcare facilities require of contractors seems worth it to Zielinski.

“When someone is literally bringing an organ into a building and putting it into someone’s body – that’s when you have to make sure that you’re space is really clean and meets all of the standards.”

Healthcare, from page 2to any company. “We got started about fi ve years ago using a 3D software called

CadDuct,” said Gary Hunter of J.F. Ahern Company. “We use it on the largest projects and many of the other ones. It streamlines the whole process. It eliminates a lot of the errors.

“One of the main bumps in the road for us has been getting the database and the software set up. The whole process required a commitment to this technology from management.”

Contractors that make the investment to work with new technology are being looked for with increased frequency by owners and architects. David A. Cintron, Jr., of DAC Studios is one of many big believers in BIM in the Chicagoland architectural community.

“It allows designers and architects to focus on what their main task is, really,” Cintron said. “From quality assurance and quality control standpoints, this software is the wave of the future, and it saves a tremendous amount of time. It provides a consistent document for everyone involved.

“Not only does it allow you to avoid mistakes that can cost a lot of money, but it allows you to run through a number of different options and scenarios. It lets you know what’s available to you.”

Klancnik says that to adopt the technology had its advantages for C.G. Schmidt. For one thing, the company could take advantage of case studies and learn from mistakes made by construction industry fi rms that have already implemented BIM.“Our case studies taught us that training was the key,” Klancnik said. “If we wanted to move forward, we had to make sure everyone had the proper training. It took a big commitment from everyone involved.

“The range of reasons a company has for getting into Building Information Modeling varies. Some believe it will increase their profi t down the line, with some they think they need it to be competitive. No matter what the reason, I think this is something any contractor should look at. Understanding the technology is important to any construction business.”

BIM, from page 5

OSHA, from page 12

Front End LoadersChains and rigging for lifting loads to prevent struck by load deathsOperator and pedestrian worker training and communication to prevent struck by vehicle deathsHigh visibility clothing for pedestrian employees

Scrapers and GradersOperator and pedestrian worker training and communication to prevent struck by vehicle deathsHigh visibility clothing for pedestrian employees

Semi TrailersDriver and pedestrian worker training and communication to prevent struck by vehicle deathsDock safety program to prevent crushed by deaths- Fatals are primarily spotter employees who are signaling to the truck driver as the truck is backing up.

Skid Steer Loaders and Bobcats

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Driver and pedestrian worker training to prevent struck by vehicle deathsSeat belt useSafety interlocks not bypassed or malfunctioningDriver training to keep head and body inside driver cockpit to prevent caught between deaths

Hopefully, by using this information, you can keep your employees safe and healthy. Remember the goal of OSHA is to ensure all workers go home at the end of each work day in the same condition as when they started that day.

For more information, checklists and other helpful tools please visit OSHA at www.osha.gov or contact your local OSHA Area Offi ce.

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T H E B U I L D E RT H E B U I L D E R

16

BuilderThe

The Builder is published periodically by the Builders Association, a trade association of com-mercial, industrial and institutional contractors

and affi liated industry fi rms dedicated to quality construction in the Chicagoland area since 1906.

2007 Board of DirectorsChairman

Paul HellermannBulley & Andrews, LLC

Vice ChairmanJ. David Pepper

Pepper Companies

TreasurerJohn Russell

W.E. O’Neil Construction Co.

John BenzWilliam J. Scown Building Company

George FerrellHenry Bros. Co.

Builders Association StaffHave a construction-related problem or question? Call your professional trade

association. While each staff member can assist you, you may fi nd it helpful to speak directly to the individual who has primary responsibility

for a particular area.

Al Leitschuh, PresidentBA Goverance

Industry and Community RelationsAGCA Liaison

Mike Schultze, Vice PresidentIndustry Relations, Government Relations

Denise Herdrich, Labor and Safety Director

Ryan Schoonover, Membership ManagerMarketing, Membership Development

Andy Cole, Communications Manager

Stacey Kelly, Project CoordinatorAdministration, Education Programs

Kelly Fierro, Accounting

Liz HumrickhouseCommunications Intern

Leon LaJeunesseCustom Contracting, Ltd.

John O’MalleyCase Foundation Company

Howard StrongGeorge Sollitt Construction Co.

Sheri TantariMcShane Construction Corp.

Dana ThorneThorne Associates

Lynn TreatRyan Companies US, Inc.

Builders Association9550 W. Higgins Rd., Suite 380

Rosemont, IL 60018(847) 318-8585www.bldrs.org