40
the builder AGC of America 3 Financial 4 Association News 8 Volume 15, Issue 2 The Builder is a publication of Builders Association, Inc., a chapter of the AGC of America, proud to have been serving Chicagoland’s construction industry since 1906. September 2011 This Issue’s Cornerstones: Legal 16 Upcoming Events 20 Government 30 Compatibility Is The Key, And “Green” Building Can Be A Natural Companion For Building Information Modeling And Integrated Project Delivery Pages 6, 26 LEED LEED BIM BIM The Right Mix

The Builder, Volume 15, Issue 2

Embed Size (px)

DESCRIPTION

The quarterly newsletter of The Builders Association, the construction industry's strongest advocate in the Chicagoland area since 1906.

Citation preview

Page 1: The Builder, Volume 15, Issue 2

the

build

er

AGC of America 3Financial 4Association News 8

Volume 15, Issue 2The Builder is a publication of Builders Association, Inc.,

a chapter of the AGC of America, proud to have been serving Chicagoland’s construction industry since 1906.September 2011

This Issue’s Cornerstones: Legal 16Upcoming Events 20 Government 30

Compatibility Is The Key, And “Green” Building Can Be A Natural Companion For Building Information Modeling And Integrated Project Delivery

Pages 6, 26

LE

ED

LE

EDBIMBIM

The Right Mix

Page 2: The Builder, Volume 15, Issue 2

The Builder is a quarterly publicati on of Builders Associati on, Inc., a trade associati on of commercial, industrial and insti tuti onal contractors and affi liated

industry fi rms dedicated to quality constructi on in the Chicagoland area since 1906. The Builders Associati on is proud to be a charter member of the AGC of America.

ChairmanHoward Strong

The George Sollitt Constructi on Company

Vice ChairmanBenjamin Johnston

James McHugh Constructi on Company

TreasurerJimmy Akintonde

Ujamaa Constructi on, Inc.

Immediate Past ChairmanR. Lynn Treat

Ryan Companies US, Inc.

9550 W. Higgins Road, Suite 380Rosemont, IL 60018 (847)318-8585 www.bldrs.org

Ken EgidiPepper Constructi on Company

Leon LaJeunesseCustom Contracti ng, Ltd.

Michael MozalJoseph J. Duff y Company

Jeff RadayMcShane Constructi on Company

Matt SprenzelInstallati on Specialists, Inc.

Brad SwabackJust Rite Acousti cs, Inc.

Ray WojkovichBulley & Andrews, LLC

Board Of Directors

Builders Association StaffHave a constructi on-related problem or

questi on? Speak directly to the individual who has primary responsibility for a parti cular area:

Al Leitschuh, PresidentIndustry Relati ons, Strategic Planning,

Government Relati ons

Denise Herdrich, Director of Labor and Membership

Labor Relati ons, Membership Recruitment

Andy Cole, Communicati ons ManagerPublic Relati ons, Website

Stacey Kelly, Project ManagerIndustry Liaison Acti viti es, Safety,

Special Projects, Builders Foundati on

Patricia Heier, Offi ce Coordinator

Mary DeMoss, Communicati ons Intern

The BuilderIn This Issue...

working on it 8Workers’ Compensati on laws are the focus of Contractor Safety Forum, but a number of other topics are covered.

happy anniversary 10Three Builders Associati on members celebrate major milestones.

scorching 12Builders Associati on members brave near record heat to assist future leaders at Builders Foundati on Golf Outi ng.

a matter of trust 16Seyfarth Shaw LLP provides insight on how benefi cial a healthy employer-employee relati onship really is in a liti gious world.

crowded calendar 20Read more on our upcoming events, including our Fall Meeti ng featuring Scott Humrickhouse of FMI, our fi rst ever skeet-shooti ng event and a seminar with one of the nati on’s foremost experts on Lean Constructi on.

Page 3: The Builder, Volume 15, Issue 2

agc 3

FASB Puts Breaks On Liability

A crowded room greeted pension expert Rocky Miller at February’s Plugging Pension Holes event, where the Financial Accounting Standards Board’s proposal for the construction industry was one of many topics.

AGC Of America Credits Member Involvement Through Comments, Letters For Lobbying Success

The Financial Accounting Standards Board (FASB) on July 27 announced its approval of a new fi nancial disclosure standard for employers with multi-employer pension plans.

The AGC of America is very proud of the successful, painstaking efforts by its Tax and Fiscal Affairs Committee and Construction Industry FASB Coalition in getting the most dangerous provisions of the originally proposed standard removed, including disclosures about withdrawal liability and retiree health and welfare benefi ts (though the latter might be addressed in a future initiative).

The original proposal by FASB would have forced contractors nationwide to list withdrawal liability from Union pension plans on their balance sheets, whether or not that company ever planned to stop employing the union. Passage would have increased exponentially the diffi culty of receiving project funding for contractors, in particular since a number of pension plans from coast-to-coast are dangerously underfunded.

The new disclosures will include:The amount of employer contributions made to each signifi cant plan and to all plans in the aggregate.An indication of whether the employer’s contributions represent more than fi ve percent of total contributions to the plan.An indication of which plans, if any, are subject to a funding improvement plan.The expiration date(s) of collective bargaining agreement(s) and any minimum funding arrangements.The most recent certifi ed funded status of the plan, as determined by the plan’s “zone status” under the Pension Protection Act of 2006. If the “zone status” is not available, an employer will be required to disclose whether the plan is: Less than 65 percent funded, between 65 percent

and 80 percent funded, or greater than 80 percent funded.A description of the nature and effect of any changes affecting comparability for each period in which a statement of income is presented.

FASB expects that the revisions will be fi nalized in September. For public entities, the enhanced disclosures will be required after December 15, 2011, while nonpublic businesses can wait until after December 15, 2012.

The AGC thanked members who had contributed comments or letters as they spent the better part of the last two years fi ghting the recommendations as written.

Another legislative victory where AGC members played a role took place in August, as the Environmental Protection

Agency (EPA) backed off of requirements for measuring and cleaning stormwater runoff from jobsites that may have cost the industry billions each year collectively.

For more, visit the Legislative Action Center at www.agc.org. For more on how the Builders Asssociation’s Government Relations activities, view the report contained in this publication.

Page 4: The Builder, Volume 15, Issue 2

4 financial

BY ARY ROSENBAUM, ESQThe Rosenbaum Law Firm, P.C.

Sometimes what is old is new again. Over the years, clothing styles, hair styles, political styles, movie styles, and television program styles may come back after being out of fashion. For those that missed the initial breakthrough of the styles in question, it’s new to them. The same can be said about multiple employer retirement plans (MEPs). Many retirement plan providers have been tout ing MEPs recently and made plan sponsors think this is a new concept. MEPs have been around for years, but are only going back into style because of changes and concerns in the retire ment plan industry.

The comeback of MEPs is a positive development in the retirement plan busi ness because it offers a choice to retirement plan sponsors on how to get a better plan at a better price while eliminating most of the liability that goes with being a plan sponsor and fi duciary. While MEPs aren’t for everyone, they are a choice for many plans to consider whether being part of a MEP outweighs the risk of being a standalone plan.

When it comes to fees for the admin istration and fi nancial advisory work for retirement plans, size does matter. Larger plans have more choices for plan provid ers because economies of scale allow plan providers to charge less in fees (as a ratio percentage to plan assets).

Smaller plans have fewer choices because unbundled providers have high minimum fees which plan sponsors fi nd too cost prohibitive The MEPs are attractive, especially on the 401(k) front because it essentially adds a bunch of small plans together to create a larger plan which reduces fees and liability for employers that adopt them.

The fi rst thing that should be known about MEPs is that they are multiple employer plans. Can you say multiple employer plans? I am not trying to make fun of you, but for you to understand that multiple employer plans are different from multi-employer plans, which are reserved for collectively bargained (union) employ ees. Don’t worry; it took me about two years as an ERISA attorney to

remember the difference.MEPs are governed under Section 413(c) of the Internal Revenue

Code. A MEP is one plan sponsored by two or more employers where at least two of the sponsoring employers are unrelated employers (meaning they are not members of the same controlled group or an affi li ated service group of companies). Under MEPs, one company is the plan sponsor and the other companies adopting the plans are co-sponsors. There is one plan document and one Form 5500 fi led for the Plan. While it is one plan, for discrimination testing (for deferrals, coverage, matching contributions, top heavy, etc.), the plan is tested separately for each unrelated employer. Related employers are grouped together for discrimination testing purposes as one employer under the MEP (as they would be if they were on their own and not part of a MEP).

Most MEPs are set up by businesses in a similar industry (such as law fi rms and medical practic es) or associations (such as a medical association or a small business organization) or have some common ownership (but not qualify ing as a controlled group) or are part of a national charitable organization.

While some plan providers are pushing these as sociation or industry specifi c plans, there is no requirement that you have to be a member of a specifi c industry or organiza tion to join a MEP. Just because you are an attorney doesn’t mean you have to join the bar association plan nor do you have to spurn a MEP because your industry like comic book stores doesn’t have a specifi c MEP. A MEP should be chosen based on the quality of the providers involved and that the expenses of joining the MEP are reasonable as compared to other MEPs.

BANG!more

for the buck

mulitemployer retirement plans:

Page 5: The Builder, Volume 15, Issue 2

www.bldrs.org 5

MEPs have become popular of late because of two important issues that have been subjecting plan sponsors to a lot of lawsuits: fi duciary liability for plan costs and investments. Plan sponsors and the individual trustees of a retirement plan are plan fi duciaries. Fiduciaries have important respon sibilities and are subject to standards of conduct because they act on behalf of participants in the retirement plan.

One of a plan fi ducia ry’s main duties is paying reasonable expenses. While many plan spon sors may think that join ing a MEP is as costly as joining a country club, the economies of scale in the retirement plan industry allow small plan sponsors to save on plan expenses as a co-sponsor of a MEP than as a sponsor of a standalone plan. A MEP is the Costco or Sam’s Club of retirement plans because its size allows it to “buy” plan services such as adminis tration and fi nancial advice in bulk.

Plan providers such as TPAs and fi nancial advisors reduce their compensation as a percentage of plan assets when plan assets grow. Plan implementation and documents costs are also lower because the costs of setting up a MEP (which is one plan) are shared by the employers adopting the MEP.

One of the plan sponsor’s potential liability pitfalls involves the fi duciary process of selecting plan investments. Whether the retirement plan is participant directed or not, a plan sponsor and trustee have to manage the process of develop ing an investment policy statement and using it to select and review plan invest-ments.

If the plan is participant directed, then the plan sponsor still has to provide investment education to participants. This process is assisted by the plan’s fi nancial advisor, as long as the fi nancial advisor is doing their job.

Companies that adopt a MEP are delegating almost all of the fi duciary liability that goes with being a plan sponsor or trustee to the company that is the MEP sponsor. So these com panies that join the MEP are transferring most of the headaches of being a plan sponsor to someone that is eager to ac cept that responsibility. I did say almost all of the fi duciary liability because there is a debate of ERISA attorneys whether joining a MEP is a fi duciary function in

or not. So in English, while some ERISA attorneys say a MEP co-sponsor delegates all fi duciary liability to the MEP sponsor, some attorneys (such as yours truly) main tain that a company joining a MEP as a co-sponsor retains a residual amount of fi duciary liability. Depending on the quality of the MEP plan providers, that residual fi duciary liability (if any) is negligible.

As with anything in life, MEPs are not for everyone. Larger plans already have the economies of scale to have an unbun dled TPA and fi nancial advisors with lower fees (as a ratio to plan assets), so they would be less interested in a MEP.

Based on their size, a large plan can delegate fi duciary liability by hiring an ERISA §3(38) fi duciary to handle their plan at a price that is comparable to a MEP. Also based on the fact that a MEP is considered one plan, plan provisions and choice of plan investments may be somewhat limit ing.

Another concern that is sometimes over blown is that if one co-sponsor fails to satisfy an applicable qualifi cation require ment under the Internal Revenue Code, application of the Code §413 regulations will result in disqualifi cation of the MEP for all of the participating employers.

As long as the plan providers of the MEP (especially the TPA) are competent in the administration of retire ment plans and with some unique drafting of MEP agreements and documents, this liability pitfall can be minimized.

As the retirement plan industry heads towards major changes with full fee disclosure and a change in the defi nition of fi duciary, MEPs can be an attractive way for smaller employers to partake in a retirement plan by limiting their liability and reducing plan expenses than if they decided to go with a standalone retirement plan. As with any choice in retirement plan, retirement plan sponsors should always consul tant with their fi nancial advisor, ERISA attorney, or retirement plan consultant to determine if a MEP is for them. e Law Firm P.C.

Copyright, 2011 The Rosenbaum Law Firm P.C. All rights reserved. The Rosenbaum Law Firm P.C., 734 Franklin Avenue, Suite 302, Garden City, New York 11530, (516) 594-1557

http://www.therosenbaumlawfi rm.com

Could The Association’s 401(k) Plan Be For Your Company?BY BRIAN HAHN

The Builders Association is now offering a comprehensive collective 401(k) plan to all member companies. Participants can provide an outstanding plan to employees while saving money and spending less time on paperwork.

Features of this program, which the Builders Association is proud to be offering for the fi rst time, include:

No annual audit Cost savings on investments No individual Form 5500 reporting Minimal plan maintenance

•••

Flexible plan features, including safe harbor, Roth and profi t sharing Customizable 401(k) plan design options involving eligibility, matches, vesting schedules, and more

The Builders Association’s benefi t plan, from a government reporting standpoint, is treated like one large plan,

regardless of how many companies take part in the program. The end result for members is a 401(k) plan with competitive investments, outstanding service, and someone else doing a majority of the plan maintenance leg work.

An evaluation on whether or not this plan is right for your company comes at no cost to you. For more information, contact Stephen Ellsworth of Robert W. Baird & Co. (1-800-792-6732) or Al Leitschuh at the Builders Association (847-318-8585). Your fi rm must be a member of the Builders Association to participate in this program.

Page 6: The Builder, Volume 15, Issue 2

6 project delivery

A Lasting EngagementA Lasting EngagementLike Autumn And Turning Leaves, Spoons And Forks,

Or The Cubs And Fifth Place, BIM And LEED Just Go TogetherBY LEO SALCE

Technical Specialist, Microdesk

One can almost liken the current state of how a Building Information Modeling (BIM) model compliments a sustainable design process to a couple’s engagement. Out of undeniable compatibility and a shared desire to attain similar long-term goals, they form a partnership that promises future long-term commitment to one another.

The concept of BIM has been around for a few years now. But not until recent years have people realized the full potential of a database-driven virtual model, which can not only reduce coordination errors and allow clash detection across different disciplines, but also capture vital information to help make better decisions for a more effi cient building not in the later stages of design, as was done in the past, but in as early as the conceptual and schematic phases.

In order to determine whether a building qualifi es as a “Green Building,” they are subject to a wide range of Building Rating systems around the world. In the U.S., most buildings currently follow the Leadership in Energy and Environmental Design (LEED) rating system, which is the leading system for certifying sustainable

Design, Construction and Operation of a building. There are currently four levels of certifi cation based on fulfi llment of a number of requirements such as water effi ciency and energy performance, among others.

There are six major requirements for obtaining LEED Building Design and Construction (BD+C) credits: Sustainable Sites, Water Effi ciency, Energy and Atmosphere, Material Reuse, Indoor and Environmental Quality and Innovative Design. Each is associated with a certain number of points that are awarded based on fulfi llment of each credit requirement.

Today these requirements are married back to BIM technology, which provides smart databases that are linked dynamically to building objects and schedules, effectively providing the data derived from built-in formulas within 2D or 3D designs that informs of building performance.

To show you the extent of how a BIM model would interact with a LEED requirement such as Water Effi ciency, imagine being able to start off your design with a BIM working template preset with schedules and parameters that derive values from formulas linked to your building components such as roofs, plumbing fi xtures, etc. This template would

automatically fi ll in the building component values into a schedule upon placement.

In order to determine whether a building qualifi es for rainwater harvesting credits, monthly rainwater collection values for roof areas can be automatically derived from the BIM model. Based on information from a weather resource, one can look up the average rainfall for a region and apply the formula Roof Area x Monthly Rainfall x 0.8 to determine this value. Or, by using the automated schedule in our working template, this value can be directly extracted from the BIM model.

Now imagine having a similar schedule template that contains built-in values for the number of water fi xtures you have and whether they are for sinks, toilets or drinking fountains. Combine this with data such as fi xture fl ow rate, number of building occupants, and number of days per month and hours per day the facility is occupied. We can then use this data to determine our building’s overall water load, non-potable water needs, and graywater capture potential.

This can also tell us what the building’s impact on our municipal water supply will be after using the harvested rainwater and graywater that will collect from the building fi xtures. From there, we can fi gure out how

Page 7: The Builder, Volume 15, Issue 2

www.bldrs.org 7

large of a cistern we will need in the building in order to properly store all the water collected.

And these are just a few examples of how a BIM model can inform building element and fi xture sustainability without even getting into what it can tell us about water-related credits like Water Effi ciency in Landscapes, for which you could track vegetation type by square footage for any given terrain and fi nd out the amount of water needed for irrigation based on chosen plantings.

In all, there is the potential to track over 40 points within the BIM model itself, without even considering ventilation, thermal, energy, or other further analysis if the data is entered and managed properly.

New extensions and add-ons to current BIM technologies continue to reduce the time required to get and compare the necessary data to check for compliance, making it increasingly easier for architects and engineers to alter and change their designs to better achieve optimum building performance early on.

One recent extension tool for Autodesk® Revit, called the Revit Conceptual Energy Analysis Tool, enables users to compare energy consumption between early design concepts.

The add-on provides graphical reports that compare energy use, lifecycle costs, and breakdowns of consumption and loads, allowing designers to evaluate and compare design options side-by-side, as well as communicate and deliver easy-to-understand graphical and raw data results to project stakeholders.

They can also access Web-based climate data from more than 1.5 million weather data sets to more rapidly perform analysis through cloud computing technology without disturbing the design workfl ow.

This sort of analysis requires little knowledge about the building and could be done by pretty much anyone on the design team during the early stages of the design process. The tool also allows you to edit multiple confi gurations for the building construction

and perform tests on how building orientation, massing, optimized envelope, shading, and glazing will impact building performance.

Another great example of an add-on for Revit is the Roombook tool, just released in December 2010. The Roombook tool calculates the surfaces of walls, fl oors and ceilings as well as room circumference and furnishing elements on a per-room basis and in total.

The calculation of each surface is made transparent by a detailed listing of all sub-areas, which makes tracking total square footage a lot easier than having to tally each separate building element.

Roombook could really impact tracking compliance for credits like the Material Reuse Credit 1.2, which requires the use of existing interior nonstructural elements such as interior walls, doors, fl oor coverings and ceiling systems in at least 50% (by area) of the completed building, including additions.

Thanks to BIM, there is little excuse for not being green these days. And with the ongoing development of new technologies, add-ons and applications that integrate with sustainable design software solutions such as Green Building Studio and Ecotect, the future is bright for an even more streamlined Building Information Model that will automatically gather all the information vital to creating completely effi cient and sustainable designs. When that time comes, the combination of BIM and LEED will go from a perfect engagement to a perfect marriage.

At Microdesk, Leo focuses primarily on training and consulting. He specializes in helping fi rms implement Revit Architecture and various visualization products, including Autodesk VIZ and 3ds Max. Leo is a Revit Architecture Certifi ed User and is LEED certifi ed. He holds a Bachelors degree in Architecture and an Associates degree in Computer Science from Universidad Católica Madre y Maestra in Santiago, Dominican Republic, where he is also a Registered Architect.

Page 8: The Builder, Volume 15, Issue 2

8 association

Comp TimeComp Time

AthletiCo Presentation On Workers’ Compensation Takes Center Stage At Safety Forum

Doug Schultz of Herlihy Mid-Continent Company makes a point during August’s Contractor Safety Forum, which covered recent workers’ compensation legislation, changes to OSHA regulations, drug testing and a number of other topics.

State agencies continue to play catch-up when it comes to Illinois’ revised Workers’ Compensation law, and the Illinois Workers’ Compensation Commission continues to work on a handbook on the new rules for employers.

Safety personnel from Builders Association members got a peek at the ins-and-outs of the new law and what it means for jobsite operations during our August Contractor Safety Forum. While the new regulations are confusing in some areas and contractors didn’t get everything they wanted in the bill, changes that were made generally were adopted to make Illinois more business-friendly, said presenter Michael Trombetta of Forum Sponsor AthletiCo.

Trombetta also hammered home the point that an informed and active businesses will be the best to deal with the changes.

“If you’re using an insurer and entrusting them with aspects of this, you’re the customer,” he said. “As the customer, you should be jumping up and down and screaming for input on the process when it

comes to what’s actually in your insurance plan.

“The huge disappointment with the Act was that nobody effectively addressed causation. In Missouri, you have to prove that at least 50 percent of the injury you’re claiming compensation for occurred on the job. The bottom line is the ‘burden of proof’ is on the employee.”

In addition to Trombetta’s presentation, the Safety Forum included in-depth discussions of:

The Builders Association’s new SafeSite Program Changes and updates to OSHA enforcement policies and regulations,

presented by OSHA representatives Third-party safety inspections Drug testing Lessons learned from safety mistakes or successes

SafeSite is an upcoming initiative to both reward companies for excellent safety records and highlight how the Builders Association keeps Chicagoland’s construction workers coming home safe. The program will encompass and improve existing safety initiatives such as the OSHA Partnership and Contractor Safety Forums, while serving as a public relations tool to promote the Builders Association members for their dedication to safety.Look for more information on what it takes to qualify as a SafeSite participant in future communications.

Changes for OSHA’s sling regulations were on the minds of the attendees, as well, and OSHA Chicago North Area representatives were on hand to explain those and other coming changes. OSHA expects updated rules for silica containment before the end of the year.

•••

Page 9: The Builder, Volume 15, Issue 2

Burger Consulting Group688 N. Milwaukee Avenue, Suite 203

Chicago, IL 60642Christian Burger, President

312-651-4150; www.burgerconsulting.com

Burger Consulting Group serves the construction industry exclusively, providing a broad range of IT consulting services including: IT strategy; systems assessment; software selection and evaluation; and implementation project management. Clients range from specialty and industrial contractors to civil/heavy and general building contractors and include some of the largest contractors in the U.S.

CNA333 S. Wabash Avenue, Floor 37S

Chicago, IL 60604John Tatum, Vice President-Construction

312-822-6786; www.cna.comCNA is the country’s seventh largest commercial insurance writer and the 13th largest property and casualty company. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration.

Jones Lang LaSalle Construction Company, Inc.200 East Randolph Drive

Chicago, IL 60601Michael Yazbeck, Managing Director

312-228-2641; www.us.joneslanglasalle.com

Jones Lang LaSalle offers comprehensive services as a construction manager, general contractor and design/builder, completing over 500 diverse assignments annually. With a service reach throughout New England, the Mid-Atlantic and the Midwest, Jones Lang LaSalle delivers construction solutions to an extensive roster of life sciences, higher education, government, corporate, industrial, technology, hospitality and residential/retail clients. Our assignments range from small interior fi t-outs to $100 million mixed use developments. With over 100 construction professionals, many of whom are LEED accredited, Jones Lang LaSalle has the fl exibility to match the best, most experienced team to each project’s requirement.

Sikich LLP998 Corporate Blvd.

Aurora, IL 60502Jason Evans, Partner-In-Charge, Construction

630-566-8400; www.sikich.comSikich LLP, a public accounting and consulting fi rm, is ranked as one of the country’s 100 largest CPA fi rms. By working with Sikich, you are assured a team of highly qualifi ed and experienced staff focused on providing personal attention, industry-specifi c technical knowledge, and solid business advice.

New MembersEdge-ucationEdge-ucation

If you are looking to stand out from the crowd in the competitive Project Manager fi eld, obtaining PMP® certifi cation, or just learning more about project management principles, can elevate your status and help you earn a salary that exceeds non-credentialed Project Managers.

Recognizing the need for more convenient, high quality training options, The Builders Association has partnered with MindEdge, a Global Registered Education Provider with the Project Management Institute, to offer a unique and affordable online Project Management Training Program that includes a library of online courses and real-world learning Simulation at special introductory rates.

For a limited time, members of The Builders Association will receive 20% discount off all course or simulation purchases. Just enter Discount Code bldrs20 in the Discount Code fi eld when registering.

These online learning programs are a convenient and affordable way to either prepare for the PMP® Exam or just brush up on basic project management processes and procedures. Courses and interactive Simulations are 100% web-based, in self-study format and delivered anytime and anywhere with internet access, making learning possible 24 hours per day, 7 days per week, and 365 days per year.

Each course combines text, graphics, interactive exercises, practice tests, real world examples, web references and readings to help learners quickly retain lessons. An innovative “Ask the Expert” feature also gives learners on-going support, allowing participants to ask questions about course content and receive an answer from a subject matter expert within 24 hours.

Participants successfully completing this program earn 35 Professional Development Units (PDU’s) and are well prepared for the PMP® certifi cation exam. Or, if you already have your PMP® certifi cation, The Builders Association offers a variety of online courses and simulations that review the PMBOK® Guide knowledge concepts vital to a Project Manager’s training and qualifi es learners for 3.5-25 PDU’s.

For course descriptions and registration information, visit the MindEdge page under the Education Section of www.bldrs.org. For more information, contact Stacey Kelly at [email protected].

BA Partnership With MindEdge Offers Online Training At Deep Discounts

www. bldrs.org 9

Page 10: The Builder, Volume 15, Issue 2

10 association

BY BRIAN HAHN

Breaking ground is nothing new for Bulley & Andrews, which is celebrating its 120th anniversary as a vital part of Chicagoland’s construction industry.

The company got its start back in 1891 when Frederick Bulley, a 21 year-old stone mason, partnered with Alfred Andrews, an architect. Both men shared a deep sense of commitment to building the industry. The principles that they founded their success on were honesty, integrity, and quality service in construction. According to Paul Hellermann, President and Chief Operating Offi cer, those principles are keys to the continued success of the company.

“The reason Bulley & Andrews has been able to sustain its business for so long is because of high quality work and superior performance,” stated Hellermann, who served as the Builders Association’s Chairman in 1997. “Dedication to client service, technical expertise and a strong relationship with the subcontractor community have also helped us thrive. We’ve earned a reputation for exceeding our clients’ expectations, and that has earned us a lot of repeat business.”

When Bulley & Andrews fi rst opened its doors at 115 Dearborn, it began to win its fi rst projects due in part to Fred’s masonry work, which was regarded as among the best in the city. Alfred Andrews’ estimating skills ensured that their bids were always precise and consistent. Today Bulley & Andrews offers construction in the commercial, industrial and institutional sectors, as well as renovation, historical restoration, and design/build projects. The company has developed long-standing relationships with McDonald’s Corporation, The University Club of Chicago,

Building Up B & AOne Of Association’s Oldest Members Celebrates 120 Years

Northern Trust and University of Chicago and has left its mark on the regional landscape through projects that include:

Glenview Public LibraryPritzker Military LibraryAdventist Hinsdale Hospital860-880 N. Lake Shore DriveRitz-Carlton ChicagoIllinois Holocaust Museum & Education CenterArts & Letters Hall, DePaul University

The company has belonged to the Builders Association for 80 years. Hellermann credits the Association for bringing stability to labor relations in the industry and giving Bulley & Andrews the opportunity to collaborate with a number of other contractors. As the company continues to grow and diversify, Hellermann sees the Builders Association playing a continued important role.

“You have to support the industry you’re in, and not just your own business,” Hellermann said. “The Builders Association really helps promote the industry as a whole, which can only help us.”

•••••••

860-880 N. Lake Shore, which was restored by Bulley & Andrews, LLC.

Mariott - Magnifi cent Mile (Photo credit: ©2008 balloggphoto.com)

Page 11: The Builder, Volume 15, Issue 2

www.bldrs.org 11

Builders Association member Berglund Construction marks its 100th year in business in 2011.

Berglund is an accomplished third-generation, family owned and operated general contractor and nationally recognized restoration fi rm. Their success in this signifi cant milestone is attributed to the employees’ vested interest in every one of the project’s success and to also to the longstanding partnership with repeat clients.

“As we refl ect on Berglund’s heritage, we celebrate 10 decades of milestones, achievements and collaborative contribution,” Fred Berglund says. “We have come a long way since then, but our founding principles, values and ethics remain the same.”

The legacy of Berglund Construction began with Fred Berglund’s late grandfather, Fred Berglund, who immigrated to the United States from Sweden and soon after formed Berglund Maintenance Co. The elder Berglund sons, the late Roger and Norman Berglund, became co-owners of the fi rm after World War II and subsequently established Fred Berglund & Sons Inc. Norman handed the reins of company president over to his son Fred, who has led the company since 1995. The business became Berglund Construction in 1999.

During the past 100 years, Berglund has earned a reputation as a premier builder and historic preservationist that thrives on high-profi le, complex and challenging projects in Illinois, Indiana, Ohio, and Wisconsin.

The company has restored many of the Midwest’s landmarks and historic

When Parker Thorne, his son Dana, and the Degnan family started Thorne Associates, Inc., one of the fi rst business decisions made was to join the Builders Association.

Twenty-fi ve years later, both the business and that relationship continue to thrive and produce results for what has become one of Chicagoland’s most respected specialty contractors.

“We started from scratch and built a fairly large business,” said President Dana Thorne. “In order to survive in today’s economy, a company either has to stay very small or become very large, so with the way business is, getting to 25 years is an accomplishment in and of itself.”

The company has worked on structures such as McCormick Place, Nordstrom’s of Chicago, Terminal 5 of the O’Hare airport, Cook County Hospital, Loyola University Medical Center, 191 W. Wacker, Aon and St. Ignatius High School.

“We’ve always targeted and had the capability to manage those large and complicated projects,” Vice President and Chief Estimator Dan Degnan explained. “(Mike Degnan) has done a terrifi c job of building up and maintaining the fi eld forces and we’ve been able to get a great team and manage them well.

“We’ve been consistent in terms of who we have here, and I think that helps. It’s tough to replicate the advantages you get naturally through experience.”

Degnan feels that continuing to educate employees and management on developing trends plays a big role, which is one of the reasons he’s happy Thorne Associates has maintained a relationship with the Association. Specifi cally, he cited educational programs on Building Information Modeling, LEED and Project Manager issues.

“I think part of what’s helped us keep growing is the level of professionalism here,” said Dan Degnan. “We’ve been able to keep up with the big changes in the bidding process by having the right people here with the right education who keep working to improve their skills. Things have evolved from hand-delivering a bid to doing everything at the speed of light.

“We’re not members of Parker and Dana’s family, but they’ve always treated us like family, and that means everything to me. With the people we’ve got in place and the ownership plan we have, I think we’re prepared to meet whatever challenges come in the next 25 years.”

A Century Of Berglund Construction

Thorne’s Silver AnniversaryThorne’s Silver Anniversary

buildings, including architecturally signifi cant campuses such as the University of Chicago and Northwestern University. Berglund has received national recognition, including the

Construction Excellence Award from the U.S. General Services Administration and National Preservation Award from the National Trust for Historic Preservation.

Provided by Berglund Construction

Page 12: The Builder, Volume 15, Issue 2

Scholarship Fund Heats Up At Orchard Valley

12 association

On a day when most of Chicagoland was desperate to get into the air conditioning, Builders Association members and guests looked to avoid the water...and the hazard it brought at Orchard Valley Golf Course in Aurora.

Since 2003, the Builders Foundation has helped fund the educations of college students seeking careers in Construction Management or Construction Engineering. In that short time, the Foundation has provided over $200,000 to 33 individuals.

The annual Builders Foundation Golf Outing raised over $28,000 for the cause. Mother Nature made it hard on golfers as the heat index approached 110 degrees, but over 120 people were able to join us for lunch, a round of golf and the 19th Hole Cocktail Reception.

This year’s scholarships were awarded to Iowa State University’s Keegan Goss, Brian Hampel and Alius Lapinskas, Bradley University’s Kara Blanco and Moses White-Miller and Purdue University’s Ellen Zouras. Scholarship applications for 2012 are now available on the Builders Association’s website, as are the rules and regulations for applying for one of these $3,000 annually renewable awards.

First Place Team Joe Spitzerri, Johnson & Bell, Ltd. Pat Garvey, Johnson & Bell, Ltd. Brett Bush, Bear Construction Matt Perno, Aon

On-Course Contests Closest To Pin, No. 2: Jeff Raday, McShane Construction Company Closest To Pin, No. 6: Vic Bishop, McShane Construction Company Closest To Pin, No. 12: Chris Murphy, McGladrey Closest to Pin, No. 17: Bob Wehner, Ryan Companies US, Inc. Straightest Drive, No. 9: Don Redar, Takao Nagai Concrete Restoration Long Putt, No. 18: Pete Conlin, Pepper Construction Company

Raffl es iPad2: Pete Conlin, Pepper Construction

$500 AmEx Gift Card: Jim McConachie, Laborers District Council R11 Driver raffl e: Chris Carlos, Johnson & Bell, Ltd.

Putting Contest Final Drawing: Ken Rowe, Takao Nagai Concrete Restoration Qualifi ers: Shawn Kelly, DLZ Surveying Shannon Lawless, XL Insurance Group Jackelyn Diekemper, Ceco Concrete Rich Nudo, Bulley & Andrews, LLC Jeff Tyner, Clifton Gunderson LLP Brian Bries, Weible & Cahill Dave Banks, SB Surety Services, Inc.

Thanks to those companies who made this event possible by sponsoring it, and we hope to see you all again July 11, 2012 at the same course. Thorne Associates Inc. (Event Sponsor) Union Carpenters & Contractors Labor Management Association (Golf Shirt) Chicago Area LECET (Lip Balm, Hole-In-One) Installation Specialists, Inc. (Water Bottle) McShane Construction Company (Course Refreshment) R.W. Baird & Transamerica (Prize) XL Insurance Group (19th Hole Cocktail Reception) James Schaeffer & Schimming, Inc. (Sunscreen) GradeBeam.com (Golf Ball) Valenti Builders, Inc. (Lunch, Hole) AthletiCo (Hole-In-One) SCC Network Services (Hole-In-One) Capitol Consulting Group (Hole) Ceco Concrete Construction (Hole) Clifton Gunderson LLP (Hole) Joseph J. Duffy Company (Hole) Laborers District Council-LMCC (Hole) McGladrey (Hole) Oakwood Contractors, Inc. (Hole) Ogletree Deakins (Hole) Pepper Construction Company (Hole) Pepper Research & Consulting (Hole) Sikich LLP (Hole) Warady & Davis LLP (Hole) W.E. O’Neil Construction Company (Hole)

Page 13: The Builder, Volume 15, Issue 2

www.bldrs.org 13

Page 14: The Builder, Volume 15, Issue 2

14 association

Your Nomination Should Include:• A brief biography of the nominee, professional affiliations and previous

recognitions or awards.• A description of the nominee's efforts and accomplishments in contributing and

creating opportunities for a diverse workforce.• A description of projects or initiatives that contribute to the creation and

enhancement of commerce and living in Chicagoland.

Nominee Name:_________________________________________________________ Nominee Title: _________________________________________________________Nominee Company:_____________________________________________________ Nominee City:__________________________________________________________ Your Name &Title:______________________________________________________Your Company:_________________________________________________________

All entries must be emailed to the Communications Manager Andy Cole at [email protected] or faxed to 847.318.8586. The deadline for nominations is Nov. 4, 2011.

Please limit your nomination to one 8 1/2 x 11 page. Entries must be submitted in one complete email or fax. The award recipients will be notified prior to the event.

The Builders Association is accepting nominations for its Community Builder Award.This Award recognizes individuals for their vision and leadership in creating employment opportunities for all citizens and for their dedication to making the Chicagoland area a better place to live and work. The recipients will be honored at the Annual Meeting at The Trump International Hotel & Tower December 15, 2011.

Page 15: The Builder, Volume 15, Issue 2

www.bldrs.org 15

The Builders Association Corporate Citizenship Award recognizes one member company for its philanthropic contributions and strong commitment to public service. This honor celebrates the recipient’s dedication to giving back to the communities they build. Please reference the criteria below for inclusion in your nomination. The recipients will be honored at the Annual Meeting at The Trump International Hotel & Tower December 15, 2011. Note that the Corporate Citizenship Award is in recognition of a company’sservice to the community, not an individual.

Your Nomination Should Include:• A description of the company’s philanthropic activity and contribution(s); please

include total annual donation amount (this includes dollars or services in kind)• A description of the company’s volunteer, charitable works and public service

programs in which the company participates

Nominee Company:____________________________________________________Nominee City:_________________________________________________________ Your Name & Title:____________________________________________________Your Company:________________________________________________________

All entries must be emailed to the Communications Manager Andy Cole at [email protected] or faxed to 845.318.8586. The deadline is Nov. 4, 2011.

Please limit your nomination to one 8 ½ x 11 page. Entries must be submitted in one complete email or fax. The award recipients will be notified prior to the event.

Page 16: The Builder, Volume 15, Issue 2

16 legal

BY PHILIPPE WEISS, ESQManaging Director, Seyfarth Shaw At Work

and JEFFREY POLISKY, ESQ

Director of Research & Development, Seyfarth Shaw At Work

Managers and supervisors in the construction industry know the importance of building trust in the workplace and at worksites. In fact, there are countless stories on the Web about how a key element of a positive work environment is trust between management and employees.

A workplace or worksite without trust is often plagued with morale issues, a lack of teamwork and loyalty and communication concerns. And we, of course, don’t dispute this notion. And we also know that building trust is a not a quick or simple process. It takes time. You need to build it one brick at a time.

Many of these same stories discuss how best to build trust, focusing on those interpersonal skills that are important in all relationships, whether employer/employee or personal--skills such as ethical behavior or taking the time to listen or proper communication and transparency or simple directives such as always telling the truth or keeping promises, or following the Golden Rule. Again, all of these interpersonal approaches or bricks ring true and are of great importance.

However, managers must balance the building of trust with their inherent risks. Boundaries must be kept to ensure that the employer/employee relationship doesn’t evolve into one where lines are blurred.

Not unlike a parent and a child, a manager must seek and build trust without losing or eliminating the inherent arms-length relationship of boss and employee. Trust must be built while respect to the relationship is maintained.

Often, we see managers, in an effort to build trust, falling overboard to be liked by their employees, to try and fi t-in as one of the crowd. This most often involves taking a more active interest in their employee’s personal lives or communication about issues unrelated to the task at hand, or unrelated to the actual performance of the job. And this is where many legal risks enter the building.

With the myriad of workplace laws, both federal and state, to contend with, managers are faced with the unenviable task of trying to achieve an equilibrium between taking a healthy interest in their

employees which promotes trust, while keeping a healthy distance from employees to mitigate legal risks. From Title VII to the ADA to the FMLA, managers are rightly taught to avoid those personal issues that potentially trigger legal protections. Knowledge of an employee’s medical information, or a family member’s illness or even hobby’s and interests often have legal ramifi cations, as they often reveal an employee’s religion, national origin or highly charged political views. A manager delving into the personal life of an employee is like sticking your hand into a dark hole, you don’t know what’s in there and whether it bites.

So therein lies the rub. Can you build trust without sticking your hand in a dark hole. The answer is yes. While a manager should not and, let’s be real, can not build an impenetrable wall, blocking all information about an employee’s personal life, at all times the focus and emphasis of a manager’s interaction with employees must stay work-related. Those interpersonal skills that help to build trust---honesty, integrity, transparency---can be championed in non-personal situations. A manager does not need to become best friends with his/her employees to establish trust. Certainly, it is easier for managers if this is the case. But its ease is far outweighed by the legal risks.

Be honest during the employee’s next performance review, not about whether the employee’s new diet has paid off, or the chances that their terminally ill mother will recover. Keep your promise to the employee to carefully study the employee’s proposal to change a long-time workplace or worksite process. Don’t be making promises to keep confi dential the employee’s deteriorating situation at home.

Openly and transparently communicate your expectations regarding the employee’s career path. Don’t openly and transparently communicate about your dating prowess. Listen, legitimately listen, to your employees when they come to you about workplace and worksite problems and concerns. Avoid, attempt to avoid, listening to your employees discuss their views on the existence of God or their solutions for the Middle East.

Building trust is at its core about establishing strong relationships. For a manager and employee this relationship must be built one brick at a time, just pay attention to which bricks you use.

Building Trust Building Trust In A Litigious WorldIn A Litigious World

Interpersonal Skills Now Can Be A Key To Avoiding Problems With

Employees Down The Road

Page 17: The Builder, Volume 15, Issue 2

www.bldrs.org 17

Thanks to our great member firmsIncluding those who have been with us since the beginning

COMPANY MEMBER SINCEThe George Sollitt Construction Company Henry Bros. Co.Herlihy Mid-Continent CompanyPepper Construction CompanyW.E. O’Neil ConstructionJoseph J. Duffy CompanyWilliam J. Scown Building Company Bulley & Andrews, LLCThe Lombard CompanyFrank H. Stowell & SonsLawdensky Construction CompanyCase Foundation Company BABCO Construction CompanyIndependent Mechanical IndustriesW.B. Olson, Inc.Schwartz Brothers Insurance Agency Glenn H. Johnson Construction Co.James, Schaeffer & SchimmingWarady & Davis

1921193619361936194319441946194919571962196519671968196919701975197619761976

Page 18: The Builder, Volume 15, Issue 2

18 insurance

BY BRUCE BUCKLEY

A recent change to regulations for certifi cates of insurance is creating considerable consternation and confusion within the contracting community, with some fi rms put at risk of contractual non-compliance. Other contractors have seen payments delayed by owners grappling with the issue, and some subcontractors have reported the problem complicates their agreements with general contractors.

Specifi cally at issue is new language that tightens requirements for notice of cancellation or non-renewal of insurance. Under the previous language, insurers were to “endeavor” to provide notice when a policy was canceled or terminated but were not held liable if they didn’t do so. The new forms have removed that wording and now require insurers to adhere strictly to policy provisions regarding such notices. The requirement has sparked considerable debate within the insurance community about how to address the issue, which many argue poses big administrative challenges.

Claims from losses incurred under a policy that has been canceled without notice are very rare, observers note. However, the risk that it could happen is enough to raise red fl ags in contracts.

Whether it is a contract between an owner and a general contractor or between a contractor and a subcontractor, upstream parties require provisions to indemnify themselves in the case of a loss involving the downstream party. Mike Kennedy, general counsel for the Associated General Contractors of America, says contractors are concerned the new notice requirements won’t be met, creating a technical non-compliance with the insurance provisions of a contract.

“As a practical problem, this rarely comes up, and there is some question as to how much of a practical problem it’s going to be,” Kennedy says. “But to the extent that it’s holding up payments to contractors, it’s a huge problem.”

Notice of CancellationThe issue stems from a change introduced in September 2009

by the Association for Cooperative Operations, Research and Development, which creates standardized forms for the industry. Mike Campo, construction team leader at brokerage fi rm Lockton, Kansas City, Mo., says the ACORD changes were made, in part, to better comply with state insurance laws.

Previously, ACORD 25’s Certifi cate of Liability stated that if a policy were canceled, the insurer should “endeavor to mail a written notice [stating the number of days left on the policy] to the certifi cate holder”; however, failure by the insurer to do so would

Foul Language?#@*&

!!!

Words Make A Difference For Contractors In Recent Insurance Certifi cates

“impose no obligation or liability of any kind upon the insurer, its agents or representatives.” The new version of ACORD 25 removes that language and states that notice will be provided “in accordance with the policy provisions.”

Although language now points to the policy for guidance regarding who is responsible for providing notice of cancellation, experts say most existing policies do not adequately address the issue. Historically, policies that require the carrier to provide notice rarely have been endorsed.

Although certifi cates of insurance commonly suggest the “insurer” should “endeavor” to provide such notice, experts say these certifi cates do not amend the policy. As a result, this discrepancy can trigger a technical non-compliance within contracts requiring that notice be provided.

“This is a contractual requirement that has long been widely disregarded, and the discrepancy was papered over in the certifi cate of insurance,” says one industry insider. “There’s no longer this fi g leaf over the non-compliance with this provision.”

Triggering a NoticeFaced with the threat of having to amend thousands of existing

policies, the insurance industry has responded with a variety of solutions. Some carriers have issued endorsements that agree to notify a third party about a policy cancellation. However, carriers have differing views on which parties should be notifi ed as well as the circumstances that would trigger a notice, such as non-renewal, material change in coverage or non-payment. At an insurance roundtable held on Feb. 1 during AGC’s 2011 Conference on Surety Bonding and Construction Risk Management in Naples, Fla., the group identifi ed 62 proprietary forms available through 22 different carriers to address the issue.

Seth Hausman, head of operations for the Zurich, Schaumburg, Ill., construction division, says notice requirements have emerged as “the No. 1 issue on the minds of our customers.” Last year, the company produced a blanket endorsement form that provides electronic notice for cancellation other than non-payment. Hausman concedes that it is “not a complete solution,” particularly for customers who require mailed notifi cation or cancellation notices for non-payment.

Hausman says that although some carriers are drafting endorsements, carriers are ultimately “not in the best position to solve this problem for customers.” Carriers are not privy to contracts between customers and their clients, lack suffi cient data and don’t have the infrastructure to meet all notice requirements, he says.

Page 19: The Builder, Volume 15, Issue 2

www.bldrs.org 19

Diego Chapter AGC, says some general contractors that work with Brady have raised concerns about notifi cation. “Our feedback to GCs has been to say, ‘Let’s step back and be rational. This hasn’t been an issue in the past, and we will do what we can to reasonably meet your needs now,’ ” he states.

Although many are looking to amend policies or contracts to address concerns, Campo says the industry should not completely discard third-party notifi cation. He says that since brokers already provide certifi cates of insurance, they have the infrastructure to provide notifi cation on the carrier’s behalf, if the carriers would agree to let the brokers do so. “Upstream parties have legitimate reasons to know if a policy has gone bad,” he adds.

Paul Becker, the construction practice leader at New York City-based brokerage fi rm Willis, which is a member of several AGC chapters, says that to provide clarity to the industry, a consistent solution needs to be put in place, rather than a “mishmash” of forms from insurance carriers and a variety of contractual remedies. Although large contractors may have the resources to tailor their own strategies, Becker says other contractors could face a daunting challenge.

“Until the industry comes up with a standardized approach, we won’t resolve this issue,” he says. “It will go on and on.”

Note: This article originally appeared in the AGC of America’s Constructor Magazine in its May/June 2011 issue. It is reprinted with permission from the AGC and McGraw-Hill.

Hausman notes that many brokers who issue certifi cates of insurance already have the necessary infrastructure in place. Furthermore, as contractor concerns revolve around contractual non-compliance, the root of the problem exists within the contracts, not the insurance policies, he says.

Checklist ComplianceMany contractors have moved to work with owners and

subcontractors but with mixed results. Scott Trethewey, executive vice president of risk management and fi nance at Moss & Associates, Fort Lauderdale, Fla., South Florida Chapter AGC, says that while many sophisticated private owners are working with contractors to remedy the issue, public owners can be more challenging. “My concern is with public owners who may be following a checklist,” he says. “If they are checking boxes and they don’t see a form that complies with the contract, that’s a problem.”

Trethewey says the issue has led to some payment delays from owners.

Subcontractors are feeling the effects as well. Lockton reports that some general contractors have asked subs to provide notices every 30 days or every time a sub asks for payment—strategies that Lockton advises against, Campo says.

David Dolnick, risk manager at the Brady Cos., San Diego, San

Page 20: The Builder, Volume 15, Issue 2

20 upcoming events

Cocktail networking session begins at noon, followed by lunch and program at 1 p.m.

To register for or sponsor fax completed forms to 847-318-8586 or visit www.bldrs.org.

Trends Driving Construction’s FutureWhile industry experts estimate that the recession has reached its low point for the industry, those same experts call for a long and slow recovery, with indications that it will be 2014 before we reach levels of construction put-in-place of 2007.

Keynote speaker Scott Humrickhouse of FMI Management Consulting will discuss the underlying trends affecting the industry at our Fall Meeting,and how your company can anticipate those risks critical to the continued success of your business.

Scott’s specialties include strategic planning, organizational assessments, business development evaluations, market research and management training.

2011Fall MeetingWednesday, Sept. 14;

Noon-3 p.m.Doubletree Hotel,

Oak Brook

road to recovery

The Builders Association proud to be an AIA/CES approved provider. Our Fall Meeting is approved for one AIA/CES Learning Unit.

Page 21: The Builder, Volume 15, Issue 2

www.bldrs.org 21

2011 Fall MeetingWednesday, September 14, Noon-3 p.m. Doubletree Hotel, 1909 Spring Road, Oak Brook

Company: _________________________________________________________________________________Address:__________________________________________________________________________________City, State, Zip: ____________________________________________________________________________Phone: ________________________________________ Fax: ______________________________________

People AttendingName: ______________________________________ Email: _______________________________________Name: ______________________________________ Email: _______________________________________Name: ______________________________________ Email: _______________________________________Name: ______________________________________ Email: _______________________________________Name: ______________________________________ Email: _______________________________________Name: ______________________________________ Email: _______________________________________

Use extra sheet if needed

PaymentAmount Enclosed: __________________________________________________________________________Charge to: Visa Mastercard AmEx VCode: _______________________Card Number: ______________________________ Expiration Date: _________________________________Billing Address: ____________________________________________________________________________Name on Card: _________________________________ Signature: __________________________________Contact Name: _____________________________________________________________________________

THIS IS A MEMBERS ONLY EVENTEarly Bird Registration (through September 2): $129 for fi rst company registrant;

$109 for each additional registrant from the same companyAfter September 2: $149 per registrant

Mail check registrations to: 9550 W. Higgins Rd., Suite 380, Rosemont, IL 60018Fax credit card registrations to: (847) 318-8586; Register online: www.bldrs.org/news-events/calendar.aspx

SponsorshipOpportunities

BRONZE SPONSOR - $400Benefi ts include:

Signage at eventOne registrationRecognition in promotion of the event

SILVER SPONSOR - $600Benefi ts include:

Signage at eventTwo event registrationsRecognition in promotion of the event

For more information on these opportunities, contact Andy Cole at [email protected]

GOLD SPONSOR - $1000Benefi ts include:

Signature signage at eventFive registrationsProminent recogntion in event promotion

Page 22: The Builder, Volume 15, Issue 2

22 upcoming events

Page 23: The Builder, Volume 15, Issue 2

www.bldrs.org 23

Sporting ClaysFriday, September 30, 2011, 10:30 a.m.-4:30 p.m. Northbrook Sports Club, Hainesville

Company: _________________________________________________________________________________Address:__________________________________________________________________________________City, State, Zip: ____________________________________________________________________________Phone: ________________________________________ Fax: ______________________________________

People Attending (Registrants need to bring their own 12 or 20-gauge shotgun)Name: ______________________________________ Email: ______________________________________Shotgun: 12-gauge 20-gauge Name: ______________________________________ Email: ______________________________________Shotgun: 12-gauge 20-gaugeName: ______________________________________ Email: ______________________________________Shotgun: 12-gauge 20-gaugeName: ______________________________________ Email: ______________________________________Shotgun: 12-gauge 20-gauge

PaymentAmount Enclosed: __________________________________________________________________________Charge to: Visa Mastercard AmEx VCode: _______________________Card Number: ______________________________ Expiration Date: _________________________________Billing Address: ____________________________________________________________________________Name on Card: _________________________________ Signature: __________________________________Contact Name: _____________________________________________________________________________

Registration fee: $300 per person (Proceeds benefi t the Builders Association’s PAC Fund)Fee covers: One day membership to the Northbrook Sports Club; Ammunition; Targets;

Ear Plugs; Safety Glasses; Lunch; Social Hour Snacks and DrinksMail check registrations to: 9550 W. Higgins Rd., Suite 380, Rosemont, IL 60018

Fax credit card registrations to: (847) 318-8586Register online: www.bldrs.org/news-events/calendar.aspx

SponsorshipOpportunities

INCREASE YOUR VISIBILITY WITH A SPONSORSHIPGet your company’s name in front of Chicago’s construction industry in a big way. Our sponsors enjoy recognition both during and before the event. There is no limit to the number of companies that can hold each sponsorship. For more information on either of the following, contact Stacey Kelly at 847-318-8585 or [email protected].

EVENT SPONSOR - $1,000: INCLUDES TWO REGISTRATIONS

LUNCH SPONSOR - $500: INCLUDES ONE REGISTRATION

Page 24: The Builder, Volume 15, Issue 2

24 upcoming events

����� ���� ��� ��� ���� ����� � ��� ���� ���������� ���� ��� � ����� ��� � ����� ����� ������ ��������� ��������� �� � �� ���� ����� �������������� ��� !��� �������� �"# �� $������ � ��� ����� %������ ����� "������� &������� �

�������� �����'���� ������� (�)** ��� ��������� ���� ���� ����� +�� ������� ��������� ����� � ,���� -���$������ �� %��� !�� !��� �� $������ �� �"# � ��� ��� ���� %������ ������ .� ��� ���� �������� � ��� +����� %������ /����� ������ ��������� � ��� ��������� ,���� /�������� %���� � 0�������� .� ���� � +���� 0����� � $�����&���������� ��� ��� ���� 1������� �� � %�������� &�� ��� 2����� 1�������� �� �� ��� ��� ���� �"������� ����2����� +���'���

��� ������� �� � 3)4� �� ��� ������ �� ��� � ��������#������ �� �������� ����������� ������� ��� ������������ ������������ ���� �� ������'�� ��� 5�6 ����

�������������� ����%�� ��7/�����87,�����7��7����97���7����������97���������7�7��������7� 7�����7

���� ������ ��� �� ��������� ����������� ���� ���� ����������� ������������ :�� ���� � ������� � ���������� �� ��������� �������� ����� ������ 0���.������� �� ���������;�������� �� <54�=(<�<4<4�

�����!������

��������7#������76�7)*((#��7%����7.���7+�������72����3)47$�������77)�57�������������72��������75�67����

#������76�7)*((7 )�67����7 #��7%����7.���7+�������72����7

Page 25: The Builder, Volume 15, Issue 2

www.bldrs.org 25

������������������ �

��������� ������������������������������������������������� ! �"��#��!������ ! ��$��%����&#

���������������� ���� ��'�(�������#�����&��)���"��#��!*�$��%����&#��� �����&���� �!���!�&���

����� �� ����+�,((��- ���##�&���� �.�����/0������!�&��12�����03�4���+�50�67�/�0�0(0�

��#�������&��&�+�%%% ����� ��#8&�%���9�&��8 ���&��� ���4

:�!��&+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;<������+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;"��&�+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;��3�4+;;;;;;;;;;;;;;;;;;;;;;;;;;;;����������$�!�+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;���=!���+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;� "��#��!� $��%����&#� ����$�!�+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;���=!���+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;� "��#��!� $��%����&#� ����$�!�+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;���=!���+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;� "��#��!� $��%����&#� ����$�!�+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;���=!���+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;� "��#��!� $��%����&#� ��������� ������ ���������:���#�����5 �� ����&�7+�����>���� ������:����������<!��� �&�=4�����:����$�!���+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;����>:���+;;;;;;;;;;;� =4�������&+;;;;;;;;;;;<������+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;$�!���&�:���+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;.�#&�����+;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;;

� ?������� �!��&�����&����������&����&#���"��#��!�.��&����)�������2������������&��.�!�&��@�-����9���& ������'��� �

���&�����)�����������&#��������������<��� �����&@�

Page 26: The Builder, Volume 15, Issue 2

26 upcoming events

With fewer projects, tighter budgets and thinner profi t margins, project teams need to rethink the entire delivery process to maximize value to clients. Lean Delivery, using tools like those associated with Integrated Project Delivery, can dramatically change the value proposition - but only if fundamentals are understood and reinforced throughout the project.

The same principles apply to sustainability and “green” - clients want “real” solutions that reduce their ecological footprint and save money.

Enroll your Project Managers and other key personnel for a unique Lean & Green Project Delivery primer featuring one of the leading experts on the topic.

John S. Nelson, PE, an adjunct professor at the University of Wisconsin-Madison, will focus on:

Lean for buildings basicsThick vs. thin sustainability analysisCase study discussion of building that aspired to ambitious lean and green goals, using many innovative project management and technical techniques

Mr. Nelson has provided consulting for both public and private fi rms, centering on strategy, market development and project participation. He has authored numerous publications and has placed a particular emphasis on lean practices and strategies for sustainable development. Prior to his return to academics, he served for over 25 years in a variety or roles at a large engineering/construction fi rm, including CEO, and is the engineer of record for numerous large complicated facilities throughout the United States.

Register online at www.bldrs.org or by faxing a completed registration form to 847-318-8586. For more information on attending or sponsoring this event, contact Stacey Kelly at [email protected].

•••

Contrasting Fundamentals To Current PracticeTuesday, October 11, 2011 8-11:30 a.m.Hyatt Rosemont, 6350 N. River Road

ProudlyPresents...

Page 27: The Builder, Volume 15, Issue 2

www.bldrs.org 27

Lean And GreenProject Manager Seminar

Tuesday, October 11, 2011 8-11:30 a.m. Hyatt Rosemont, 6350 N. River Road

Company: _________________________________________________________________________________Address:__________________________________________________________________________________City, State, Zip: ____________________________________________________________________________Phone: ________________________________________ Fax: ______________________________________

People Attending (Use extra sheet if necessary)Name: ______________________________________ Email: ______________________________________Name: ______________________________________ Email: ______________________________________Name: ______________________________________ Email: ______________________________________Name: ______________________________________ Email: ______________________________________Name: ______________________________________ Email: ______________________________________Name: ______________________________________ Email: ______________________________________

PaymentAmount Enclosed: __________________________________________________________________________Charge to: � Visa � Mastercard � AmEx VCode: _______________________Card Number: ______________________________ Expiration Date: _________________________________Billing Address: ____________________________________________________________________________Name on Card: _________________________________ Signature: __________________________________Contact Name: _____________________________________________________________________________

Registration fee: $149 for fi rst registrant; $119 per additional registrant from same companyMail check registrations to: 9550 W. Higgins Rd., Suite 380, Rosemont, IL 60018

Fax credit card registrations to: (847) 318-8586Register online: www.bldrs.org/news-events/calendar.aspx

SponsorshipOpportunities

INCREASE YOUR VISIBILITY WITH A SPONSORSHIPGet your company’s name in front of Chicago’s construction industry in a big way. Our sponsors enjoy recognition both during and before the event. There is no limit to the number of companies that can hold each sponsorship. For more information on sponsorship, contact Stacey Kelly at 847-318-8585 or [email protected].

PROGRAM SPONSOR - $500: INCLUDES ONE REGISTRATION

Page 28: The Builder, Volume 15, Issue 2

28 position statements

The Builders Association has served as a valuable resource for construction industry fi rms in Northeast Illinios, Northwest Indiana and Southeast Wisconsin since 1906. Through outstanding services and educational programs, we’ve been able to provide solutions for many of the best companies in the industry.

You’ll learn a lot more about us by perusing the Position Statements within this brochure. These aren’t just ideals we strive to follow: They represent what we believe needs to be adhered to for the construction industry in Chicagoland to truly thrive, even in diffi cult economic times.

Questions regarding this publication or our organization? My door is always open, so feel free to contact me at [email protected].

Albert LeitschuhPresident, Builders Association

PositionPositionStatementsStatements

Page 29: The Builder, Volume 15, Issue 2

www.bldrs.org 29

Builders Association member companies are actively involved in community affairs and encourage business growth in both the Chicago area and statewide. As such, the Association is engaged in policy information and legislation relevant to the commercial construction industry.

We are committed to business reforms that result in the Chicago area maintaining competitive advantage to appeal to new business and industry. View our position statements below.

State Construction MethodsThe Builders Association is proud to

have as members the most respected general contractors and specialty contractors in the Chicago area. Due to the quality of the contractors that are available for state-funded work, it is the Association’s opinion that Illinois should consider Design/Build and Construction Manager At-Risk as

alternative delivery methods. The use of these delivery methods on these projects would allow contractors more freedom to make decisions impacting the work, help the state by avoiding cost overruns and ultimately allow for better buildings at a signifi cant savings to taxpayers.

The Association strongly believes that the lowest bid isn’t always necessarily the best bid, and that the State should use multiple factors to get the best value when choosing a contractor.

Development Tax IncrementsThe Builders Association supports

continuing the tax credit structure as an economic development tool without caps or limitations. The Association espouses all efforts that maximize the worth of these economic development tools.

Tax Increment Financing (TIF)The Builders Association supports

maintaining TIF programs to improve the area’s ability to attract new business. The Association considers responsible operation of TIFs key to generating jobs and rejuvenating communities.

Building Code Adoption And Enforcement

The Builders Association endorses the adoption and enforcement of fair building codes that institute minimum standards for the construction industry and safeguard the public. Adoption and enforcement of such codes should be executed uniformly by properly trained entities possessing related knowledge and understanding, without political or external infl uences.

Mechanic’s Lien StatutesThe Builders Association feels that any

modifi cation of lien statutes should benefi t the commercial construction industry as a whole, as opposed to changes that would exclusively benefi t one segment of the industry. The Association encourages open dialogue among industry experts and legal representatives relative to this issue.

PermittingA protracted or burdensome permitting

process impedes economic development. The Builders Association supports actions by individual permitting agencies or legislation by the State and/or City that would enact standards to be met by county governments, fi re districts, municipalities and other government entities that result in timely issuance of permits.

Economic Development

More On...Who We Are BUILDERS ASSOCIATION STAFFAl Leitschuh, PresidentDenise Herdrich, Director of Labor & MembershipAndy Cole, Communications ManagerStacey Kelly, Project ManagerPatty Heier, Offi ce CoordinatorMary DeMoss, Communications InternBrian Hahn, Communications InternPhoto Credits: Builders Association, Dave Sniadak,

Ujamaa Construction, AGC of America.

Page 30: The Builder, Volume 15, Issue 2

30 position statements

More On...Partnership With OSHA

DiversityThe Builders Association strongly supports diversity in

Chicagoland’s construction workforce. The Association feels minority communities represent a signifi cant segment of the local workforce that has not been fully utilized by the industry. As a number of industry experts anticipate a labor shortage in the coming years, it is vital that the industry fully use all available resources.

Participating in a minority hiring program such as our Construction Career Opportunity Program (CCOP) can strengthen a company’s workforce and demonstrate corporate citizenship. Recognizing and respecting the differences inherent in our society and places of work is an important function of any successful construction company.

Minority, Disadvantaged and Women-0wned Businesses

The Builders Association encourages its members to work with minority-owned contractors. Our Business Assistance Task Force is committed to implementing programs, services, networking and partnering opportunities for minority contractors to continue to develop their businesses, which in turn will provide a heightened competitive benefi t and greater productivity.

The Association’s belief is that the building of strong minority-owned fi rms is advantageous to the entire industry. With contracts for Chicago area projects encouraging commitments to MBE/DBE/WBE fi rms, it is crucial that those businesses be qualifi ed and competent. Supporting minority contractors by hiring them through a joint venture or other means gives contractors the opportunity to work on a project for which the company may otherwise not be large enough. The Association supports its members in providing those fi rms the opportunity to bid. If a company is not selected, members are encouraged to explain reasoning and offer advice for future endeavors.

WorkforceDevelopment

Since sponsoring one of the fi rst national construction safety competitions in the 1920’s, the Builders Association has established a long tradition of making sure Chicagoland’s construction workers come home safe at the end of each day. The best manifestation of that dedication is our comprehensive partnership with the Occupational Safety & Health Administration (OSHA). We’re proud to have the only Safety Partnership in the area’s construction industry endorsed and participated in by OSHA. For more on one of the most comprehensive partnerships of its kind in the country and how it could benefi t you, contact Stacey Kelly ([email protected]) at the Builders Association.

Page 31: The Builder, Volume 15, Issue 2

www.bldrs.org 31

The Builders Association believes Building Information Modeling (BIM) and Virtual Design & Construction (VDC) represent signifi cant innovations to the industry’s future. While the technology requires an upfront investment, it is our opinion that contractors who make the fi nancial and manpower commitments necessary to implement this technology will benefi t in the long run.

AGC of America offi cials have stated that the construction industry has not registered growth in productivity since 1968. Adopting BIM technology and practices will help reverse that trend by drastically reducing the number of costly mistakes caused when contractors, owners and design professionals are not on the same page.

BIM has the capability of streamlining the entire construction process and improving the overall performance of the building process.

By tracking changes in materials or plans for any phase of the project electronically, building errors and change orders are greatly reduced. BIM enables contractors to see different scenarios at the push of a button, instantly enlightening project managers on how changes in logistics, materials or other phases would impact the project. Increasingly, owners are realizing the decreased costs, expedited completions, and improved fi nal buildings associated with BIM. Contractors who employ this technology will see a decided advantage in project bid selection in the next few years and beyond.

More On...AGC of America

BuildingInformation

Modeling

The Builders Association supports the efforts of construction companies to use sustainable construction methods. Potential cost increases to build “green” may also result in savings over the life cycle of the building.

In addition to improving the environment, sustainable construction benefi ts owners through reduced operating costs, decreased number of days lost to health problems and increased overall productivity. Contractors who understand and utilize sustainable construction realize an added public relations benefi t by enhancing their reputation as a fi rm committed to the environment and the well-being of the communities they build in.

SustainableConstruction

For more on our resources for construction industry fi rms, visit www.bldrs.org.

The Builders Association is proud to be a charter chapter of the AGC of America, the nation’s largest and most effective voice for the construction industry. Since 1918, our partnership with the AGC has allowed members a number of benefi ts available through the national organization, including detailed fi nancial information, government relations services, discounts from numerous vendors and cutting-edge training and educational programs. Visit www.agc.org or contact Denise Herdrich ([email protected]) for more on the services available to your company through the AGC.

Page 32: The Builder, Volume 15, Issue 2

32 government relations report

As

Co-

Pres

iden

t of

a g

ener

al c

ontra

ctor

tha

t ha

s be

en w

ith th

e B

uild

ers A

ssoc

iatio

n fo

r ove

r 40

year

s, I’

ve s

een

fi rst

-han

d ho

w s

trong

con

stru

ctio

n in

dust

ry

fi rm

s can

be w

hen

they

join

thei

r effo

rts fo

r the

goo

d of

th

e co

nstru

ctio

n in

dust

ry a

nd C

hica

gola

nd b

usin

esse

s in

gen

eral

. As

a co

llect

ive

unit

of b

usin

essm

en,

we

have

the

pote

ntia

l for

trem

endo

us p

ositi

ve in

fl uen

ce.

Ther

e’s

no s

ingl

e ar

ea w

here

this

hol

ds tr

ue m

ore

than

in

gove

rnm

ent

rela

tions

. Th

ere

is s

treng

th i

n nu

mbe

rs w

hen

it co

mes

to m

eetin

g w

ith la

wm

aker

s, su

ppor

ting

or o

ppos

ing

legi

slat

ion

or s

impl

y m

akin

g th

e vo

ice

of th

e in

dust

ry h

eard

. In

thos

e ar

eas,

I fe

el

like

the

Bui

lder

s Ass

ocia

tion,

thro

ugh

its lo

bbyi

st a

nd

Gov

ernm

ent

Rel

atio

ns C

omm

ittee

, ha

s m

ade

grea

t in

road

s in

rece

nt y

ears

.In

side

this

repo

rt, y

ou’ll

fi nd

info

rmat

ion

on le

gisl

ativ

e ac

tion

from

this

pas

t ses

sion

, w

here

we

stoo

d as

an

Ass

ocia

tion

on e

ach

issu

e an

d w

here

it s

tand

s as

of l

ate

sum

mer

20

11,

befo

re O

ctob

er’s

sta

te v

eto

sess

ion.

You

’ll a

lso

view

som

e in

form

atio

n on

the

go

vern

men

t rel

atio

ns a

ctiv

ities

of

the

AG

C o

f Am

eric

a, w

hich

doe

s fo

r ou

r bu

sine

sses

na

tiona

lly w

hat t

he B

uild

ers A

ssoc

iatio

n is

abl

e to

do

at th

e st

ate

leve

l.I a

lso

wan

ted

to ta

ke th

is o

ppor

tuni

ty to

than

k th

e co

mpa

nies

that

hav

e co

ntrib

uted

to

our P

oliti

cal A

ctio

n C

omm

ittee

:A M

essa

ge F

rom

The

Com

mit

tee

Chai

rSt

ephe

n O

lson,

W.B

. Olso

n, In

c.

The

Cont

ents

Stat

e Ca

pita

l Bill

3Ci

ty o

f Chi

cago

4AG

C of

Am

eric

a

4En

viro

nmen

tal P

rote

ctio

n 5

Proj

ect L

abor

Agr

eem

ents

5

Wor

kers

’ Com

p 6

Veto

Ses

sion

7PA

C Co

ntri

buti

ons

8Po

siti

on S

tate

men

ts

9Su

bcon

trac

tor P

ay

10

Bul

ley

& A

ndre

ws,

LLC

Jose

ph J.

Duf

fy C

ompa

nyM

cSha

ne C

onst

ruct

ion

Com

pany

Oak

woo

d C

ontra

ctor

s, In

c.Pe

pper

Con

stru

ctio

n C

ompa

nyTh

orne

Ass

ocia

tes,

Inc.

Uja

maa

Con

stru

ctio

n, In

c.Va

lent

i Bui

lder

s Inc

.W

.B. O

lson

, Inc

.W

illia

m J.

Sco

wn

Bui

ldin

g C

ompa

nyC

ontri

butin

g to

our

PA

C F

und

give

s us

gre

ater

leve

rage

in S

prin

gfi e

ld a

nd h

elp

us

stre

ngth

en re

latio

ns w

ith th

e gov

ernm

ent n

ot ju

st fo

r mem

bers

of t

he B

uild

ers A

ssoc

iatio

n,

but

for

cons

truct

ion

in I

llino

is a

s a

who

le. W

hen

you

rece

ive

your

Ass

ocia

tion

dues

re

new

al f

orm

s in

ear

ly N

ovem

ber,

I w

ould

enc

oura

ge y

ou to

don

ate

to th

e PA

C in

the

spac

e pr

ovid

ed. H

elp

us lo

ok o

ut fo

r the

inte

rest

s of y

our b

usin

ess.

Plea

se t

ake

som

e tim

e to

rea

d ab

out

the

gove

rnm

ent

deve

lopm

ents

, bot

h st

ate

and

natio

nal,

that

hav

e ha

d an

impa

ct o

n ou

r in

dust

ry th

is y

ear.

If y

ou h

ave

any

ques

tions

ab

out

our

gove

rnm

ent

rela

tions

act

iviti

es o

r ho

w y

ou c

an g

et i

nvol

ved,

ple

ase

feel

fr

ee to

con

tact

me

at s

co@

wbo

.com

, or B

uild

ers A

ssoc

iatio

n Pr

esid

ent A

l Lei

tsch

uh a

t al

eits

chuh

@bl

drs.o

rg.

Than

ks

agai

n fo

r re

adin

g,

and

than

ks

for

your

co

ntrib

utio

n to

th

e B

uild

ers

Ass

ocia

tion.

• • • • • • • • • •

The

Peop

leG

OV

ER

NM

EN

T R

EL

ATIO

NS

CO

MM

ITT

EE

Step

hen

Ols

on, W

.B. O

lson

, Inc

. (C

hair)

Dan

iel D

orfm

an, H

arris

Win

ick

LLP

Den

nis G

arlic

k, W

.E. O

’Nei

l Con

stru

ctio

n

Com

pany

Scot

Pep

per,

The

Pepp

er C

ompa

nies

LO

BB

YIS

TJe

ff G

lass

, Cap

itol C

onsu

lting

Gro

up

BU

ILD

ER

S A

SSO

CIA

TIO

NSU

PPO

RT

STA

FFA

l Lei

tsch

uh, P

resi

dent

And

y C

ole,

Com

mun

icat

ions

Man

ager

Stac

ey K

elly

, Pro

ject

Man

ager

Bria

n H

ahn,

Com

mun

icat

ions

Inte

rnPh

oto

Cre

dits

: Ron

Wac

hter

; Lai

rd M

. Le;

A

ndy

Col

e; W

.E. O

’Nei

l Con

stru

ctio

n;

Chi

cago

Arc

hite

ctur

e Fo

unda

tion

WW

W.B

LD

RS.

OR

G

2

Page 33: The Builder, Volume 15, Issue 2

www.bldrs.org 33

3

Capi

tal C

onst

ruct

ion

Bill

Hou

se B

ill 3

12/S

enat

e Bi

ll 12

21 (2

009)

It’s

bette

r lat

e th

an n

ever

for c

ontra

ctor

s w

ho

wer

e lo

okin

g fo

r a C

apita

l Con

stru

ctio

n B

ill.

In 2

009,

Gov

erno

r Q

uinn

sig

ned

the

Illin

ois

Jobs

Now

! Pr

ogra

m,

a $3

1 m

illio

n in

itiat

ive

that

was

the

stat

e’s

fi rst

suc

h pr

ojec

t in

over

a

deca

de.

The

Bill

, w

hich

cal

led

for

fund

ing

to

com

e fr

om v

ideo

pok

er m

achi

ne p

roce

eds,

was

ch

alle

nged

in c

ourt

on it

s co

nstit

utio

nalit

y an

d ha

lted.

With

an

unus

ual

mid

-sum

mer

dec

isio

n, t

he

Illin

ois

Supr

eme

Cou

rt is

sued

a d

ecis

ion

that

up

held

th

e co

nstit

utio

nalit

y of

th

e C

apita

l C

onst

ruct

ion

Bill

. Th

e pr

ogra

m a

nd a

ll of

its

fu

ndin

g so

urce

s ar

e no

w fu

lly im

plem

ente

d.

Even

afte

r a

mom

enta

ry b

udge

t blip

in M

ay,

all s

yste

ms

are

in p

lace

to s

ell t

he s

econ

d ph

ase

of b

onds

nee

ded

for

fund

ing.

Acc

ordi

ng t

o lo

bbyi

st J

eff

Gla

ss, t

he fi

ve-y

ear

plan

incl

udes

th

e fo

llow

ing:

$3 b

illio

n fo

r sch

ool c

onst

ruct

ion

$3.3

bill

ion

for

com

mun

ity d

evel

opm

ent

and

cultu

ral c

onst

ruct

ion

$1.3

bi

llion

fo

r en

viro

nmen

tal

cons

truct

ion

$3.1

bill

ion

for l

ocal

pub

lic w

orks

$20.

3 bi

llion

in tr

ansp

orta

tion

spen

ding

In a

dditi

on t

o vi

deo

gam

blin

g in

bar

s, t

he

jobs

pro

gram

will

be

fund

ed b

y in

crea

ses

in

driv

er’s

lice

nse

and

licen

se p

late

fees

and

hig

her

taxe

s on

alc

ohol

, can

dy, s

oft d

rinks

and

bea

uty

prod

ucts

.A

t th

e tim

e of

th

e pr

ogra

m’s

or

igin

al

pass

ing,

$12

5 m

illio

n w

as s

late

d to

go

tow

ard

reco

nstru

ctio

n of

th

e K

enne

dy

Expr

essw

ay.

A n

umbe

r of

pro

ject

s lis

ted

in t

he b

ill w

ere

engi

neer

ed t

o up

grad

e pu

blic

tra

nsit

in t

he

Chi

cago

are

a, w

ith f

unds

als

o ea

rmar

ked

for

high

-spe

ed ra

il pr

ojec

ts.

• • • • •

At ri

ght,

som

e of

the

wor

k co

mpl

eted

by

W.E

. O’N

eil C

onst

ruct

ion

Com

pany

at C

olum

bia

Col

lege

in d

ownt

own

Chi

cago

. Pro

ject

s at c

olle

ges a

roun

d th

e st

ate

coul

d be

fund

ed b

y th

e C

apita

l Con

stru

ctio

n Bi

ll.

Sena

te P

rocu

rem

ent

Sena

te R

esol

utio

n 01

18

TH

E S

UM

MA

RY:

Spo

nsor

ed b

y Se

nato

r D

on H

arm

on (

D-O

ak P

ark)

, the

Res

olut

ion

soug

ht to

cr

eate

a S

enat

e C

omm

ittee

on

Proc

urem

ent t

o st

udy

all a

spec

ts o

f the

Sta

te’s

pro

cure

men

t sys

tem

.T

HE

STA

NC

E:T

he B

uild

ers A

ssoc

iatio

n m

onito

red

the

Res

olut

ion.

TH

E S

TAT

US:

The

Sena

te a

dopt

ed th

e R

esol

utio

n in

Mar

ch.

This

Com

mitt

ee w

as c

reat

ed w

ith th

e in

tent

of

enac

ting

prac

tical

ref

orm

s to

red

uce

frau

d, w

aste

, m

ism

anag

emen

t and

abus

e whi

le st

ill m

aint

aini

ng ef

fi cie

ncy

and

effe

ctiv

enes

s in

purc

hasi

ng g

oods

and

serv

ices

for t

he S

tate

. A

mon

g th

e ite

ms

to b

e ev

alua

ted:

Rep

ortin

g of

pro

cure

men

t com

mun

icat

ions

; En

surin

g pr

uden

t co

mm

unic

atio

ns w

ith v

endo

rs r

egar

ding

the

exe

cutio

n of

con

tract

s; E

ncou

ragi

ng

priv

ate

ente

rpris

e to

shar

e ex

perti

se a

nd id

eas w

ith th

e St

ate;

Hea

ring

rega

rdin

g so

le so

urce

con

tract

s;

And

dis

clos

ure

rega

rdin

g su

bcon

tract

ors.

Page 34: The Builder, Volume 15, Issue 2

34 government relations report

4

The

Bui

lder

s A

ssoc

iatio

n is

pro

ud t

o be

a c

hart

er c

hapt

er o

f th

e A

GC

of A

mer

ica,

the

nat

ion’

s la

rges

t an

d m

ost

effe

ctiv

e vo

ice

for

the

cons

truc

tion

indu

stry

. V

isit

the

AG

C’s

Leg

isla

tive

Act

ion

Cen

ter

(ww

w.a

gc.o

rg/c

s/ad

voca

cy/a

ctio

n_ce

nter

) to

fi nd

out

mor

e ab

out A

GC

’s

gove

rnm

ent r

elat

ions

act

iviti

es, a

nd h

ow y

ou c

an g

et in

volv

ed.

Chi

cago

’s C

ity C

ounc

il sa

w a

num

ber o

f cha

nges

in th

e m

ost r

ecen

t ele

ctio

n, a

nd th

e C

omm

ittee

han

dlin

g Zo

ning

and

Bui

ldin

g re

flect

s tho

se c

hang

es w

ith n

ew

mem

bers

and

a n

ew C

hair

man

. Ald

erm

en o

n th

e C

omm

ittee

incl

ude:

D

anie

l Sol

is (C

hairm

an),

25th

War

d H

owar

d B

rook

ins(

Vic

e C

hairm

an),

21st

War

dR

ober

t Fio

retti

, 2nd

War

dM

iche

lle A

. Har

ris, 8

thW

ard

Edw

ard

M. B

urke

, 14th

War

dTo

ni F

oulk

es, 1

5thW

ard

Lata

sha

R. T

hom

as, 1

7thW

ard

Deb

orah

L. G

raha

m, 2

9thW

ard

Ray

Sua

rez,

31st

War

dR

icha

rd F

. Mel

l, 33

rdW

ard

Car

rie M

. Aus

tin, 3

4thW

ard

Rey

Col

on, 3

5thW

ard

Tim

othy

M. C

ulle

rton,

38th

War

d M

arga

ret L

aurin

o, 3

9thW

ard

Bre

ndan

Rei

lly, 4

2ndW

ard

Thom

as T

unne

y, 4

4thW

ard

Jam

es C

appl

eman

, 46th

War

dA

mey

aPa

war

, 47th

War

d

Cit

y o

f C

hic

ago

Com

mit

tee

On

Zo

nin

g, L

and

mar

ks

An

d B

uil

din

g S

tan

dar

ds

Page 35: The Builder, Volume 15, Issue 2

www.bldrs.org 35

5

Envi

ronm

enta

l Pro

tect

ion

Act -

Ow

ner C

erti

fi cat

ion

Hou

se B

ill 3

371

Proj

ect L

abor

Agr

eem

ents

Hou

se B

ill 2

987

TH

E S

UM

MA

RY:

Rep

rese

ntat

ive

Patri

ck V

ersc

hoor

e (D

-Roc

k Is

land

) pro

pose

d a

Bill

to re

quire

a P

roje

ct L

abor

A

gree

men

t on

a St

ate-

fund

ed p

roje

ct w

hen

the

Stat

e, a

genc

y, a

utho

rity,

boa

rd o

r ins

trum

enta

lity

unde

r the

con

trol o

f th

e G

over

nor d

eter

min

es th

at a

PLA

is in

the

Stat

e’s i

nter

est.

The A

ct w

ould

als

o se

t for

th te

rms t

o be

incl

uded

in su

ch

agre

emen

ts a

nd re

quire

the

Stat

e en

tity

to n

egot

iate

in g

ood

faith

with

bot

h th

e in

dust

ry a

nd la

bor.

TH

E S

TAN

CE

:The

Bui

lder

s Ass

ocia

tion

activ

ely

oppo

ses a

ny le

gisl

atio

n th

at re

quire

s PLA

s on

publ

ic jo

bs.

TH

E S

TAT

US:

HB

298

7 w

as p

asse

d by

bot

h ho

uses

and

sent

to th

e G

over

nor i

n Ju

ne.

The

Proj

ect L

abor

Agr

eem

ent c

over

s all

term

s and

con

ditio

ns o

f em

ploy

men

t on

spec

ifi c

proj

ects

. The

Bill

as w

ritte

n is

ver

y sp

ecifi

c, a

ccor

ding

to J

eff G

lass

, who

was

qui

ck to

poi

nt o

ut th

at th

e ag

reem

ent o

nly

impa

cted

pub

licly

fund

ed

proj

ects

.“T

he re

ason

we

didn

’t lik

e it

is b

ecau

se it

goe

s aga

inst

wha

t we’

ve a

lread

y co

llect

ivel

y ba

rgai

ned,

” sa

id G

lass

, sta

ting

the

Bui

lder

s Ass

ocia

tion’

s vie

w. “

This

bill

will

be

com

ing

up a

gain

and

will

alw

ays b

e on

the

tabl

e.”

Acc

ordi

ng to

this

Act

any

Pro

ject

Lab

or A

gree

men

t sha

ll:

Set f

orth

effe

ctiv

e, im

med

iate

, and

mut

ually

bin

ding

pro

cedu

res

for

reso

lvin

g ju

risdi

ctio

nal l

abor

dis

pute

s an

d gr

ieva

nces

aris

ing

befo

re th

e co

mpl

etio

n of

wor

kC

onta

in g

uara

ntee

s aga

inst

strik

es, l

ocko

uts,

or si

mila

r act

ions

Ensu

re a

relia

ble

sour

ce o

f ski

lled

and

expe

rienc

ed la

bor

For

min

oriti

es a

nd f

emal

es a

s de

fi ned

und

er th

e B

usin

ess

Ente

rpris

e fo

r M

inor

ities

, Fem

ales

and

per

sons

with

D

isab

ilitie

s Act

, set

forth

goa

ls fo

r app

rent

ices

hip

hour

s to

be

perf

orm

ed b

y m

inor

ities

and

fem

ales

and

set

forth

go

als f

or to

tal h

ours

to p

erfo

rmed

by

unde

rrep

rese

nted

min

oriti

es a

nd fe

mal

es

Perm

it th

e sel

ectio

n of

the l

owes

t qua

lifi e

d re

spon

sibl

e bid

der,

with

out r

egar

d to

uni

on o

r non

-uni

on st

atus

at o

ther

co

nstru

ctio

n si

tes

Bin

d al

l co

ntra

ctor

s an

d su

bcon

tract

ors

on t

he p

ublic

wor

ks p

roje

ct t

hrou

gh t

he i

nclu

sion

of

appr

opria

te b

id

spec

ifi ca

tions

in a

ll re

leva

nt d

ocum

ents

• • • • • •

TH

E

SUM

MA

RY:

Sp

onso

red

by

Rep

rese

ntat

ive

Mik

e Fo

rtner

(R

-Wes

t C

hica

go),

this

Bill

am

ende

d th

e En

viro

nmen

tal

Prot

ectio

n A

ct t

o re

quire

con

stru

ctio

n fi r

ms a

nd d

emol

ition

deb

ris o

pera

tions

to m

eet c

erfi c

atio

n an

d do

cum

enta

tion

stan

dard

s in

rega

rd to

soil.

T

HE

STA

NC

E:

The

Bui

lder

s A

ssoc

iatio

n m

onito

red

this

legi

slat

ion.

TH

E S

TAT

US:

HB

337

1 w

as p

asse

d by

bot

h ho

uses

an

d se

nt to

the

Gov

erno

r in

June

.Th

is

Envi

ronm

enta

l Pr

otec

tion

Act

de

als

with

co

nstru

ctio

n or

dem

oliti

on d

ebris

. T

hese

ter

ms

mea

n no

n-ha

zard

ous,

unco

ntam

inat

ed m

ater

ials

res

ultin

g fr

om

the

cons

truct

ion

rem

odel

ing,

rep

air,

and

dem

oliti

on o

f ut

ilitie

s, st

ruct

ures

, and

road

s. W

hile

the

fi nal

ver

sion

of

the

Bill

did

n’t d

eal d

irect

ly

with

mos

t con

stru

ctio

n in

dust

ry fi

rms,

lobb

yist

Jef

f Gla

ss

belie

ves c

ontra

ctor

s hav

en’t

hear

d th

e las

t of t

his p

artic

ular

pi

ece

of le

gisl

atio

n.

“Thi

s iss

ue w

ill co

me b

ack

agai

n be

caus

e, as

it’s

writ

ten,

it

does

n’t a

ddre

ss th

e or

igin

al is

sue

of c

onst

ruct

ion

debr

is

and

cont

amin

ants

. “T

he E

PA O

wne

r C

ertifi

cat

ion

Bill

was

sup

pous

ed

to d

eal

with

the

afo

rem

entio

ned

cons

truct

ion

debr

is.

How

ever

, whe

n it

was

pas

sed,

it d

ealt

with

pre

dom

inan

tly

quar

ry a

nd m

inin

g de

bris

.”U

nder

HB

337

1, o

pera

tors

of

unco

ntam

inat

ed s

oil fi

ll

oper

atio

ns m

ust d

ocum

ent t

he f

ollo

win

g in

form

atio

n fo

r ea

ch lo

ad o

f unc

onta

min

ated

soil

rece

ived

: Th

e na

me

of t

he h

aule

r, th

e ad

dres

s of

the

site

of

orig

in a

nd th

e ow

ner a

nd th

e op

erat

or o

f the

site

of

orig

in o

f the

unc

onta

min

ated

soil

The

wei

ght a

nd v

olum

e of

the

unco

ntam

inat

ed so

ilTh

e da

te th

e so

il w

as re

ceiv

edO

btai

n a

certi

fi cat

ion

from

the

owne

r or o

pera

tor o

f th

e si

te w

hich

the

soil

was

rem

oved

fro

m th

at th

e si

te h

as n

ever

bee

n us

ed fo

r com

mer

cial

or i

ndus

trial

pu

rpos

esA

cer

tifi c

atio

n fr

om a

lice

nsed

pro

fess

iona

l eng

inee

r or

geol

ogis

ttha

tthe

soil

isun

cont

amin

ated

• • • • •

Con

fi rm

that

the

soil

was

not

rem

oved

from

a si

te a

s pa

rt of

a c

lean

up o

r rem

oval

of c

onta

min

ants

Vis

ually

ins

pect

eac

h lo

ad t

o co

nfi rm

tha

t on

ly

unco

ntam

inat

ed so

il is

bei

ng a

ccep

ted

Scre

en e

ach

load

of

unco

ntam

inat

ed s

oil

usin

g a

devi

ce th

at is

app

rove

d by

the

Age

ncy

and

dete

cts

vola

tile

orga

nic

com

poun

ds

Doc

umen

tatio

n of

an

y ch

emic

al

anal

ysis

m

ust

• • • •

incl

ude a

copy

of t

he la

b an

alys

is, a

ccre

dita

tion

stat

us

of th

e la

b pe

rfor

min

g th

e an

alys

is a

nd c

ertifi

cat

ion

by a

n au

thor

ized

age

nt o

f th

e la

b th

at th

e an

alys

is

has b

een

perf

orm

ed in

acco

rdan

ce w

ith th

e Age

ncy’

s ru

les f

or th

e ac

cred

itatio

nO

wne

rs a

nd o

pera

tors

mus

t ke

ep a

ll d

ocum

enta

tion

for

a m

inim

um o

f 3

year

s of

a r

ecei

pt o

f ea

ch l

oad

of

unco

ntam

inat

ed so

il.

Page 36: The Builder, Volume 15, Issue 2

36 government relations report

Wor

kers

’ Com

pens

atio

nH

ouse

Bill

169

8T

HE

SU

MM

AR

Y: S

pons

ored

by

Rep

. Joh

n B

radl

ey (D

-Mar

ion)

and

Sen

ator

Kw

ame

Rao

ul (D

-Chi

cago

), H

B 1

698

soug

ht si

gnifi

cant

refo

rms t

o m

any

parts

of s

tand

ing

wor

kers

’ com

pens

atio

n le

gisl

atio

n.T

HE

STA

NC

E:

The

Bui

lder

s A

ssoc

iatio

n m

onito

red

the

bill,

pay

ing

parti

cula

r at

tent

ion

to w

hat

was

in

clud

ed a

nd n

ot in

clud

ed in

the

prop

osal

.T

HE

STA

TU

S:H

B 1

698

pass

ed b

oth

the

Hou

se o

f Rep

rese

ntat

ives

and

the

Sena

te in

May

, and

was

sign

ed

into

law

by

Gov

erno

r Pat

Qui

nn in

June

. The

refo

rms a

re sc

hedu

led

to ta

ke e

ffect

Sep

tem

ber 1

.

The

rew

rite

of th

e Ill

inoi

s W

orke

rs’ C

ompe

nsat

ion

Prog

ram

will

sav

e Ill

inoi

s bu

sine

sses

mon

ey, b

ut a

s B

A lo

bbyi

st J

eff G

lass

poi

nted

out

, one

issu

e th

e A

ssoc

iatio

n w

ante

d to

see

add

ress

ed w

as m

issi

ng fr

om th

e re

form

.“O

ne is

sue

very

impo

rtant

to th

e B

uild

ers A

ssoc

iatio

n is

cau

satio

n, a

nd it

was

n’t a

ddre

ssed

in th

e Act

,” h

e sa

id. “

This

bill

was

mea

nt to

ben

efi t

the

caus

atio

n st

anda

rd, w

hich

it d

id n

ot.

“Und

er t

he n

ew s

yste

m, I

llino

is b

usin

esse

s ar

e lik

ely

to s

ave

anyw

here

fro

m $

375

to $

500

mill

ion

in

prem

ium

s. It

mak

es s

ome

dram

atic

cha

nges

in

the

area

s of

doc

tor

choi

ces,

fees

and

bill

ings

, w

hile

als

o pr

ovid

ing

inju

red

wor

kers

with

add

ition

al p

rote

ctio

ns.”

The A

ct p

rovi

des a

num

ber o

f ref

orm

s tha

t are

des

igne

d to

redu

ce th

e bu

rden

s on

empl

oyer

s. Th

ese

refo

rms

incl

ude: T

hirty

per

cent

redu

ctio

n in

the

med

ical

fee

sche

dule

, whi

ch is

pro

ject

ed to

save

em

ploy

ers c

lose

to fi

fteen

per

cent

in p

rem

ium

s P

rovi

sion

s des

igne

d to

gua

rant

ee th

at e

mpl

oyee

s are

rece

ivin

g co

st-e

ffect

ive

treat

men

t tha

t im

prov

es o

utco

mes

Req

uire

men

t tha

t phy

sici

ans

and

arbi

trato

rs o

nly

use

the

stan

dard

set

forth

by

the

Am

eric

an M

edic

al

Ass

ocia

tion

whe

n de

term

inin

g im

pairm

ent a

nd d

isab

ility

A c

ap o

n ca

rpal

tunn

el p

erm

anen

t par

tial d

isab

ility

pay

men

ts, w

hich

is sp

ecul

ated

to

sa

ve e

mpl

oyer

s aro

und

$19

mill

ion

Den

ial o

f cla

im to

wor

kers

that

wer

e in

toxi

cate

d an

d su

stai

ned

an in

jury

A c

ap o

n w

age

diffe

rent

ial a

war

ds a

t the

age

of 6

7 or

fi ve

yea

rs p

ost-a

ccid

ent,

whi

chev

er is

late

r, ex

pect

ed to

save

em

ploy

ers a

roun

d $8

7 m

illio

n

Incr

ease

d ut

iliza

tion

revi

ew to

dec

reas

e un

need

ed tr

eatm

ents

, whi

ch is

exp

ecte

d to

sav

e em

ploy

ers

as

muc

h as

fi ve

per

cent

E

nhan

ced

auth

ority

for i

nves

tigat

ing

and

pros

ecut

ing

wor

kers

that

fi le

frau

dule

nt c

laim

sTh

e Act

atte

mpt

s to

mak

e su

re th

at p

aym

ents

to in

jure

d w

orke

rs a

re m

ade

prom

ptly

in a

tim

ely

fash

ion.

If

they

are

not

, em

ploy

ers f

ace

inte

rest

and

pen

altie

s pay

able

to th

e pr

ovid

er.

Als

o, t

here

will

be

enha

nced

enf

orce

men

t ag

ains

t em

ploy

ers

who

fai

l to

mai

ntai

n pr

oper

wor

kers

’ co

mpe

nsat

ion

cove

rage

. Inj

ured

em

ploy

ees

are

safe

guar

ded

agai

nst t

reat

men

t dis

rupt

ion

by th

e cr

eatio

n of

a

proc

ess f

or e

lect

roni

c bi

lling

from

pro

vide

rs.

Cut

s wer

e m

ade

to th

e m

edic

al o

r hos

pita

l fee

sche

dule

and

the

cost

of i

mpl

ants

.

• • • • • • • •

6Gov

erno

r Pat

Qui

nn sp

eaks

at t

he B

uild

ers A

ssoc

iatio

n’s A

nnua

l Mee

ting

in 2

009

at T

he D

rake

Hot

el. A

mon

g th

e m

any

piec

es o

f leg

isla

tion

sign

ed b

y Q

uinn

in th

e m

ost r

ecen

t ses

sion

was

the

refo

rm o

f Wor

kers

’ C

ompe

nsat

ion

legi

slat

ion.

Page 37: The Builder, Volume 15, Issue 2

www.bldrs.org 37

Two

new

co

ncep

ts

are

in

play

be

ginn

ing

New

Ye

ar’s

D

ay

2012

ac

cord

ing

to G

lass

. Th

e fi r

st i

s th

at

an e

mpl

oyer

-inst

itute

d PP

O p

lan

can

be o

ffere

d to

the

em

ploy

ee t

hat,

if no

t ta

ken,

cou

nts

as o

ne c

hoic

e of

ph

ysic

ian.

The

sec

ond

is th

e ab

ility

for

the c

onst

ruct

ion

indu

stry

to co

llect

ivel

y ba

rgai

n a w

orke

rs’ c

omp

pack

age.

Eac

h co

ncep

t w

ill

requ

ire

adm

inis

trativ

e ru

les t

hat w

ill b

e cl

osel

y m

onito

red.

HB

16

98

intro

duce

s m

easu

res

to

rest

ruct

ure

the

Illin

ois

Wor

kers

’ C

ompe

nsat

ion

Com

mis

sion

, w

hich

is

the

bod

y re

spon

sibl

e fo

r op

erat

ing

the

stat

e co

urt

syst

em f

or w

orke

rs’

com

pens

atio

n ca

ses.

The

Com

mis

sion

is

now

in th

e pr

oces

s of

dev

elop

ing

a ha

ndbo

ok o

f st

ate

law

s on

the

topi

c, b

ut is

wai

ting

to p

rint u

ntil

lang

uage

issu

es h

ave

been

reso

lved

.A

ccor

ding

to G

lass

ther

e w

ill b

e fu

rther

atte

mpt

s to

add

ress

the

caus

atio

ns s

tand

ards

du

ring

the

Oct

ober

vet

o se

ssio

n.

TH

E S

UM

MA

RY:

Spo

nsor

ed b

y Se

nato

r M

artin

San

dova

l (D

-Cic

ero)

, SB

012

8 w

ould

hav

e req

uire

d an

empl

oyer

to p

rovi

de at

leas

t sev

en si

ck d

ays w

ith p

ay d

urin

g ea

ch

12-m

onth

per

iod.

T

HE

STA

NC

E:T

he B

uild

ers A

ssoc

iatio

n op

pose

d th

is le

gisl

atio

n.T

HE

STA

TU

S:SB

012

8 w

as n

ot v

oted

on

in th

e Se

nate

and

was

refe

rred

to th

e ru

les

com

mitt

ee.

In a

dditi

on to

req

uirin

g th

at a

n em

ploy

er p

rovi

de s

even

pai

d si

ck d

ays

per

year

, the

H

ealth

y W

orkp

lace

Act

wou

ld h

ave

stip

ulat

ed th

at a

n em

ploy

ee m

ay u

se th

ose

days

for:

Phys

ical

or m

enta

l illn

ess,

inju

ry o

r med

ical

con

ditio

nPr

ofes

sion

al d

iagn

osis

or c

are

Med

ical

app

oint

men

t of t

he e

mpl

oyee

or a

fam

ily m

embe

r“I

n its

orig

inal

form

, the

bill

was

the

gove

rnm

ent m

anda

ting

busi

ness

to p

rovi

de th

ose

sick

day

s,” st

ated

Jeff

Gla

ss. “

It w

ould

hav

e int

erfe

red

with

cont

ract

or is

sues

, whi

ch is

one

of

the

reas

ons i

t nev

er w

ent a

nyw

here

. It w

ould

hav

e co

st b

usin

esse

s a lo

t of m

oney

.”

• • •Heal

thy

Wor

kpla

ceSe

nate

Bill

012

8

Veto

Ses

sion

Taxe

sBu

dget

The

fall

Veto

Ses

sion

in la

te O

ctob

er w

ill li

kely

feat

ure

actio

n on

a n

umbe

r of i

tem

s, in

clud

ing:

G

amin

g ex

pans

ion

Supp

lem

enta

l Bud

getin

gC

om E

d Sm

art G

rid le

gisl

atio

nB

usin

ess t

axes

• • • •

In re

spon

se to

out

cry

from

con

tract

ors a

nd o

ther

Ill

inio

s bus

ines

ses,

Sena

te P

resi

dent

John

Cul

lerto

n (D

-C

hica

go) a

nd S

peak

er o

f the

Hou

se M

icha

el M

adig

an

(D-C

hica

go) h

ave

form

ed a

Join

t Rev

enue

Com

mitt

ee

to d

iscu

ss im

prov

ing

the

Stat

e’s b

usin

ess t

ax st

ruct

ure.

Th

e C

omm

ittee

hop

es to

pre

sent

a re

port

durin

g th

e Ve

to

Sess

ion

that

dea

ls w

ith v

ario

us ta

x po

licie

s and

mak

es

Illin

ois a

mor

e bu

sine

ss-f

riend

ly st

ate.

Th

e B

uild

ers A

ssoc

iatio

n w

ill h

ave

sepa

rate

mee

tings

w

ith th

e C

hairm

an o

f the

Com

mitt

ee a

fter L

abor

Day

to

disc

uss t

his a

nd o

ther

issu

es re

latin

g to

con

stru

ctio

n.

An

agre

emen

t bet

wee

n D

emoc

rats

and

Rep

ublic

ans

in th

e H

ouse

of R

epre

sent

ativ

es re

sulte

d in

a b

udge

t tha

t ca

me

clos

er to

bal

ance

d th

an p

rece

edin

g pl

ans.

With

th

e ra

isin

g of

per

sona

l and

cor

pora

te in

com

e ta

xes i

n Ja

nuar

y, th

e le

gisl

atur

e pl

ans t

o m

onito

r tax

reve

nues

and

m

ake

adju

stm

ents

dur

ing

the

Veto

Ses

sion

. Ill

inoi

s stil

l fac

es a

mou

ntai

n of

deb

t, as

the

back

log

of u

npai

d bi

lls c

ontin

ues t

o gr

ow a

nd w

ill n

eed

to b

e ad

dres

sed.

7

Page 38: The Builder, Volume 15, Issue 2

38 government relations report

8

Can

dida

te/C

omm

ittee

Ham

ilton

Cha

ng (R

, Hou

se)

Art

Turn

er(D

,Hou

se)

Illin

ois S

enat

e D

emoc

ratic

Fun

d

Bill

Bra

dy F

or G

over

nor

John

Mill

ner(

R, S

enat

e)

Bria

n D

oher

ty (R

, Sen

ate)

Rep

ublic

anSt

ate

Sena

te C

ampa

ign

Com

mitt

ee

Car

ol S

ente

(D, H

ouse

)Ry

anH

iggi

ns (R

, Hou

se)

Citi

zens

For C

hris

tine

Rad

ogno

(R, S

enat

e)Sa

m M

cCan

n (R

,Sen

ate)

Citi

zens

For S

usan

Gar

rett

(D, S

enat

e)Sa

raFe

igen

holtz

(D, H

ouse

)

Dav

id H

arris

(R, H

ouse

)Sk

ip S

avia

no(R

, Hou

se)

Dav

id L

uech

tefe

ld(R

,Sen

ate)

Spea

kerM

icha

el M

adig

an(D

, Hou

se)

Dem

ocra

tic P

arty

of I

llino

isSu

ziSc

hmid

t(R

, Sen

ate)

Den

nis R

ebol

etti

(R, H

ouse

)Ti

m S

chm

itz (R

, Hou

se)

Frie

ndso

f Mic

hael

A. A

lvar

ez (M

WR

D)

Tom

Cro

ss(R

, Hou

se)

Build

ers A

ssoc

iatio

n PA

C D

onat

ions

, 201

0-11

Page 39: The Builder, Volume 15, Issue 2

www.bldrs.org 39

Mec

hani

cs Li

enH

ouse

Bill

363

6Su

bcon

trac

tor

Dire

ct P

aySe

nate

Bill

013

3

Othe

r Bill

s

TH

E

SUM

MA

RY:

Sp

onso

red

by

Rep

rese

ntat

ive

Cha

pin

Ros

e (R

-Cha

rlest

on),

HB

36

36

adds

to

th

e pr

ovis

ions

con

cern

ing

a w

ritte

n de

man

d by

an

owne

r a

mec

hani

cs li

enho

lder

sta

ting

that

the

lienh

olde

r mus

t fi le

su

it w

ithin

30

days

. T

HE

STA

NC

E:

The

Bui

lder

s A

ssoc

iatio

n m

onito

red

this

Bill

clo

sely

, with

a q

uest

ion

on a

pre

viou

sly

atta

ched

am

endm

ent.

TH

E S

TAT

US:

A t

hird

rea

ding

of

HB

363

6 w

as

sche

dule

d fo

r lat

e M

ay. N

o fu

rther

act

ion

was

take

n.Th

e M

echa

nic

Lien

For

feitu

re N

otic

e am

ends

the

Ill

inoi

s Mec

hani

c Li

en A

ct. I

n ad

ditio

n to

the

30-d

ay ti

me

limit

on a

lie

n fi l

ing,

a r

equi

rem

ent

is t

hat

the

expr

ess

war

ning

mus

t be

incl

uded

in th

e w

ritte

n de

man

d. A

failu

re

by th

e re

spon

dent

of t

he n

otic

e w

ithin

30

days

of i

ssua

nce

of th

e re

ceip

t will

con

stitu

te li

en fo

rfei

ture

.“T

he b

ill n

ever

pas

sed

mai

nly

beca

use

it w

as ju

st to

o co

mpl

ex,”

stat

ed Je

ff G

lass

. “Th

ere’

s a co

urt c

ase g

oing

on

invo

lvin

g th

e m

echa

nics

lien

that

will

hav

e so

me

impa

ct

on w

heth

er it

com

es b

ack

up, s

o w

e’ll

have

to k

eep

a cl

ose

eye

on th

e is

sue.

TH

E S

UM

MA

RY:

The

Bui

lder

s Ass

ocia

tion m

onito

red

seve

ral

othe

r B

ills

as t

hey

mad

e th

eir

way

thr

ough

the

Ill

inoi

s Sta

te L

egis

latu

re in

the m

ost r

ecen

t ses

sion

. Am

ong

thos

e w

e w

ere

wat

chin

g w

ith a

n in

tere

st:

HB

122

8 - R

egul

atio

n of

plu

mbi

ng li

cens

es, a

dopt

ing

a co

de o

f sta

ndar

dsH

B 1

462

- A

men

dmen

t of

the

Illi

nois

Veh

icle

C

ode

to c

larif

y th

e de

fi niti

on o

f “co

de e

nfor

cem

ent

offi c

ial”

and

kee

p cl

oser

tabs

on

cons

truct

ion

truck

vi

olat

ions

HB

260

7 - A

tech

nica

l cha

nge t

o th

e Min

imum

Wag

e La

wSB

003

8 -

For

Illin

ois

Plum

bing

Lic

ense

Law

, st

ipul

ated

th

at

“plu

mbi

ng”

incl

udes

ra

inw

ater

ha

rves

ting,

but

doe

s not

incl

ude

mai

nten

ance

of a

ny

syst

em n

ot re

quire

d by

the

Illin

ois P

lum

bing

Cod

eSB

114

9 -

Cre

atio

n of

the

Illi

nois

Qua

lity

Jobs

A

ct, w

hich

wou

ld h

ave

incl

uded

tax

ince

ntiv

es f

or

expa

ndin

g co

mpa

nies

and

tech

nolo

gy p

roje

cts

SB 1

349

- C

hang

ed d

efi n

ition

s of

“ac

cide

nt”

and

“inj

ury”

in W

orke

rs’ C

ompe

nsat

ion

Act

SB

1422

-

Tech

nica

l ch

ange

in

W

orke

rs’

Com

pens

atio

nSB

151

1 - T

wea

ked

Une

mpl

oym

ent I

nsur

ance

Act

SB 1

929

- Am

ende

d EP

A s

tand

ards

for l

andfi

ll-u

se

debr

isSB

193

3 - P

rovi

ded

that

unc

laim

ed w

ages

or p

ayro

ll he

ld b

y a

bank

ing

or fi

nan

cial

org

aniz

atio

n is

pr

esum

ed a

band

oned

afte

r one

yea

r, de

crea

sed

from

fi v

e ye

ars

SB 1

971

- Am

ende

d tim

efra

me

for M

echa

nics

Lie

n A

ct

TH

E S

TAT

US:

Ever

y B

ill l

iste

d ab

ove

was

eith

er

stop

ped,

pla

ced

in a

Rul

es C

omm

ittee

or

post

ponn

ed f

or

othe

r re

ason

s w

ith t

he e

xcep

tions

of

SB 1

929

and

HB

12

28, b

oth

of w

hich

wer

e se

nt to

the

Gov

erno

r w

ith th

e ap

prov

al o

f one

of t

he tw

o le

gisl

ativ

e bo

dies

.

• • • • • • • • • • •

TH

E

SUM

MA

RY:

Sp

onso

red

by

Sena

tor

Mar

tin

Sand

oval

(D

-Cic

ero)

, SB

013

3 w

ould

hav

e am

ende

d th

e Ill

inoi

s Pr

ocur

emen

t C

ode.

An

amen

dmen

t of

the

Sta

te

Prom

pt P

aym

ent A

ct,

it w

ould

hav

e re

quire

d on

pub

lic

wor

k th

at th

e St

ate

or a

genc

y w

ould

pay

the

amou

nt d

ue

dire

ctly

to th

e su

bcon

tract

or p

ursu

ant t

o th

e bi

ll or

invo

ice

prov

ided

by

the

cont

ract

or to

the

Stat

e or

age

ncy.

T

HE

STA

NC

E:T

he B

uild

ers A

ssoc

iatio

n op

pose

d th

is

Bill

and

con

sulte

d ot

her c

onst

ruct

ion

orga

niza

tions

.T

HE

STA

TU

S:SB

013

3 w

as n

ot v

oted

on

in th

e Sen

ate

and

was

refe

rred

to th

e ru

les c

omm

ittee

. Th

e B

uild

ers A

ssoc

iatio

n co

nsul

ted

othe

r org

aniz

atio

ns

to p

oll o

pini

ons o

n w

heth

er en

actin

g th

is B

ill as

law

wou

ld

lead

to p

rivat

e w

ork

subc

ontra

ctor

dire

ct p

aym

ent.

In ad

ditio

n to w

hat’s

list

ed ab

ove,

it w

ould

have

prov

ided

th

at t

he r

equi

rem

ents

of

a se

ctio

n co

ncer

ning

pay

men

ts

to s

ubco

ntra

ctor

s an

d m

ater

ial s

uppl

iers

do

not a

pply

to

subc

ontra

ctor

s pur

suan

t to

the

Illin

ois P

rocu

rem

ent C

ode.

10

Page 40: The Builder, Volume 15, Issue 2

`

To find out more about these or other benefits, contact Denise Herdrich at 847.318.8585 or visit www.bldrs.org

“Membership gives you the competitive advantage.”

Membership Benefits The Builders Association offers a wide variety of discounts on products and services to benefit member companies. Products and services at member discounts can save your company money over the long haul.

Receive a 15 percent discount on classified postings on this site geared specifically at the construction industry. Enter the promo code TBA at the time of registration to buy or sell your excess materials, vehicles, equipment, tools or machinery.

A leading developer of online leadership and management courses and simulations is offering a 10 percent discount to all Builders Association members. For a limited time, get 20 percent off by entering the code bldrs20 when signing up.

The Builders Association’s continuous commitment to safety continues through its Safety Partnership with OSHA. The Partnership is one of the most comprehensive of its kind in the country and is the only local safety program actively participated in by OSHA.

McGraw-Hill offers members deep discounts on subscriptions ($49 per year

or $99 for three years).