BuilderVOLUME 10,

ISSUE 5DECEMBER 2006

In This Issue...

Project Spotlight p2Association News p3Fall Meeting p4Labor News p5BA Turns 100 p8AGC News p11Member Milestones p12Member Marketplace p12Guest Article: 5D CAD p14

builders associationBUILDING YOUR BUSINESS

please see GREEN, page 11

The

GreenGreen And TheAnd The MachinesMachines

The Alberici Corporation headquar-ters in St. Louis, which was honored by the U.S. Green Building Council in late 2005. The LEED Platinum rating achieved by the building was done so with the help of Vertegy, and the build-ing was rated the Greenest Building in the World. Photo provided.

Experts Comment On Experts Comment On Integration Of BIM, Integration Of BIM,

Green Building Green Building

BUILDING YOUR BUSINESS

100thAnniversary1906-2006

BY ANDY COLE

With sustainable building and Building Information Modeling (BIM) advancing on the construction industry faster than a chorus of mid-season boos around Rex Grossman, it’s becoming more and more important that contractors not only understand these advances, but see how the mixture of them can affect their business.

Technology and the environment may seem like strange bedfellows, but in terms of mixing

BIM with green ratings systems, a number of industry professionals feel they go hand-in-hand when it comes to making a better building. There’s a sentiment from those partial to each of the two prevalent green ratings systems that contractors not quick to pick up on BIM and other changes could quickly go the way of the caribou.

“These aren’t just things that are popping up that are going to go away,” said Ujjval Vyas of Foran Glennon Palandech & Ponzi of sustainable construction and Building Information Modeling. “It’s very important that contractors start to use this technology and get out in front of it, because the ones who don’t get out in front of it are going to fi nd themselves left behind in

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How Can WeHelp You?

Have a construction-related problem or question? Call your professional trade

association. While each BA staff member can assist you, you may often fi nd it help-ful to speak directly with the individual who has primary responsibility for a par-ticular area. His or her name is provided

for your convenience.

Al Leitschuh………………BA Governance Industry Relations Strategic Planning AGC Liaison

Mike Schultze.………....Industry Relations Government Relations Denise Capasso.................................Labor SafetyRyan Schoonover........................Marketing Membership DevelopmentAndy Cole....…........……Communications

Media RelationsStacey Kelly....….........……Administration Education Programs

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

please see Ryan, page 6

Showtime For Ryan

One of nine steel trusses is lifted as the roof begins to form for The Sears Centre in Hoffman Estates. Ryan Com-panies built the 11,000-seat concert and sports venue and also is 75 percent owner of it. Near the former site of the Poplar Creek Music Theater, Ryan Companies constructed a facility with 1,000 club seats and 43 luxury suites. The Sears Centre will play host to profes-sional hockey, soccer, football and lacrosse in addition to concerts and family events.

Project Spotlight

Company Serves As Majority Owner Company Serves As Majority Owner Of Entertainment Complex It BuiltOf Entertainment Complex It Built

BY ANDY COLE

There’s never a guarantee that a contractor will get total cooperation from an owner ... unless, of course, the contractor happens to be the owner.

Ryan Companies US, Inc. and the Village of Hoffman Estates turned the Sears Centre into a collaborative effort, and that effort has been on display in the form of concerts, sporting events and other family fare. The 11,000-seat arena is 75 percent owned by Ryan and 25 percent owned by Sears, which purchased the naming rights to the facility.

Ryan Companies President Jeff Smith was in search of a new challenge for his

company, and owning and operating the new arena certainly fi t the bill.

“Owning real estate is nothing new for us, but the operation aspect is new,” Smith said. “It’s a chance for us to actually manage the facility, which is something we’ve been looking for an opportunity to do for some time now.

“The design-bid-build process doesn’t work very well with these kinds of projects. The greatest value came out of the single-source approach. As operators, we’ve been there since day one while everything was happening.”

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

from INCEPTIONINCEPTIONINCEPTIONINCEPTIONINCEPTION through PROJECT CLOSE-OUTPROJECT CLOSE-OUTPROJECT CLOSE-OUTPROJECT CLOSE-OUTPROJECT CLOSE-OUT

OGLETREE DEAKINSCONSTRUCTION INDUSTRY GROUP

Providing Expert CounselingAnd Legal ServicesTo The Construction Industry

The Builders Association gratefully acknowledges the following sponsors of the

100th Anniversary Annual Meeting:

GOLD SPONSORSGOLD SPONSORSBulley & AndrewsBulley & AndrewsGeorge Sollitt Construction CompanyGeorge Sollitt Construction CompanyJames, Schaeffer & SchimmingJames, Schaeffer & SchimmingMcShane Construction CorporationMcShane Construction CorporationPepper Construction CompanyPepper Construction CompanyRyan Companies U.S.Ryan Companies U.S.

SILVER SPONSORSSILVER SPONSORSChicago Area LECETChicago Area LECETHenry Bros. CompanyHenry Bros. CompanyLaSalle BankLaSalle BankMcDonald Modular SolutionsMcDonald Modular SolutionsTakao Nagai AssociatesTakao Nagai AssociatesValenti BuildersValenti Builders

BRONZE SPONSORSBRONZE SPONSORSScown Building CompanyScown Building CompanyW.B. OlsonW.B. Olson

Association Welcomes New Employee

The Builders Association welcomed a new Membership Manager in November with the arrival of Ryan Schoonover.

As Membership Manager, Ryan will focus on membership sales and sponsor development for the Builders Association. He will assist the association in expanding its membership and help members get the most out of products and services provided by the association.

“I defi nitely think that there’s a lot that I can do with this position,” Schoonover said.

“There’s a wide range of possibilities and I’m excited to get started. I’m eager to help the association and its members in any way I can.”

Schoonover is a 2005 graduate of the University of Kentucky. He majored in Political Science and English while minoring in French.

In addition to his studies, Ryan was active in the workforce while still in school. He comes to the Builders Association after having been Membership Coordinator for the Fayette County Bar Association and Membership Coordinator for the International Spa Association.

You can contact Ryan at the Builders Association at (847) 318-8585 or by email at rschoonover@bldrs.org.

Schoonover

O’Malley Elected To Board Of DirectorsCase Foundation Company President

John O’Malley will be among those guiding policy for the Builders Association. He was elected to the Board of Directors for 2007.

O’Malley replaces Sam Krauss of S.G. Krauss, who stepped down after a two-

year term. Remaining on the Board of Directors

are: John Benz of William J. Scown Building Company; George Ferrell of Henry Bros. Company; Paul Hellermann

New MembersThe Builders Association welcomes the

following new members:CBiz Accounting

1 S. Wacker Drive, Suite 1800Chicago, IL 60606

www.cbiz.com

Cedar Creek Services, LLC51537 Industrial Drive

New Baltimore, MI 48047www.cedarcreekcarpentry.com

please see Board, page 10

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

Poupore Outlines NCABA Members Pose Labor Questions To BA Members Pose Labor Questions To Executive Vice President Of National Executive Vice President Of National Construction Alliance At Fall MeetingConstruction Alliance At Fall Meeting

Ray Poupore, Executive Vice President of the National Construction Alliance, speaks to Builders Association members during the Fall Meeting (top photo). In the other photo, Poupore chats with Builders Association President Al Leitschuh.

The defection of three large unions from the AFL-CIO to the new National Construction Alliance (NCA) in 2006 brought with them a fl ood of questions about the NCA.

In addition to wondering what would be different about the new organization, local construction professionals wondered how these changes would impact their businesses.

While some of the questions may have been answered at the Builders Association’s Fall Meeting, many of the questions regarding local impact are seemingly here to stay.

Ray Poupore, Executive Vice President of the NCA, covered what the NCA is and what it proposes to be in his keynote speech at the Fall Meeting, which took place over breakfast Oct. 19 at the Hilton Garden Inn-O’Hare in Des Plaines.

Poupore discussed the different levels of the NCA and why the organization was formed. The NCA is composed of the Laborers International Union of North America, the International Union of Operating Engineers and the United Brotherhood of Carpenters and Joiners of America.

While Poupore’s speech centered around describing the different levels of the NCA and the differences between the NCA and the AFL-CIO’s Building and Construction Trades Department, he also discussed how important contractors were to the young organization.

“We have to go to contractors who, for whatever reason, haven’t worked with us,” Poupore said. “The NCA would love to work on only all-union projects, but we’re going to be hell-bent on making sure our basic tradesmen can do their work anywhere. We want to keep the base we have and expand on that.

“We want to treat contractors as our

customers. We need to maintain the base we had in addition to growing the market. To do that, we’re going to be user-friendly for contractors.”

The NCA is trying to expand its reach outside of traditional union strongholds with work in areas that aren’t traditionally union. Poupore used recent multi-billion dollar projects in Kentucky and Texas as positive examples of the NCA trying to create a broader base.

Poupore discussed the NCA’s Heavy and Highway Division, its Capital Improvement Division, its Building and Commercial Division and its Power and Industrial Division.

Poupore touched on the subject of jurisdictional disputes during his speech, saying that the NCA would avoid using the AFL-CIO’s “greenbook” for those disputes wherever possible.

“In this construction market, we need a modern solution to those disputes, not a book that bases things on court decisions handed down 60 years ago.”

Poupore favors using local decisions and practices. As an organization, the NCA is trying to formulate its own policy for dealing with jurisdictional disputes.

“I’m not going to b.s. you and tell you that we’ve got a silver bullet or a magic dust, but I think we have the leadership in place to create the solutions we’re all looking for,” he said.

He stressed that while the organization might not have an answer to some things at this time, the NCA has a good system in place and wants to be sensitive to the needs of contractors.

In a question and answer session following the speech, Builders Association

members aired their concerns about issues with Poupore, most notably on jurisdictional disputes. James McShane of McShane Construction Corporation voiced the concerns of many members when he expressed his frustration with problems on jobsites due to disagreements between unions that the NCA represents.

While Poupore did not have an immediate answer to the question of what the NCA could do about jurisdictional disputes, he pledged to discuss the issue with union presidents.

The session also included questions on maintenance agreements, unfunded vested liability in pensions and the National Labor Relations Board.

Association members were left to wonder how the changes on the national union landscape would affect their businesses and the local construction industry.

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Labor News

The Changing Landscape Of LaborWhat The Break-Up Of What The Break-Up Of Unifi ed Organized Labor Unifi ed Organized Labor Means For The IndustryMeans For The Industry

BY ROGER L. PRICESeyfarth Shaw LLP

Organized labor has generally faced declining membership for decades. That decline has been evident in the construction industry as well. In 1970, an estimated 40% of construction workers belonged to a union. By 2005, that fi gure had fallen to 13.1%. The disagreement among organized labor leaders about how to curb the overall decline in union membership recently led several unions to withdraw from the AFL-CIO and form their own labor federation.

From 1957 to 2005, organized labor was largely unifi ed under a single federation,

the AFL-CIO. In July 2005, however, several large unions, some representing construction workers, left the AFL-CIO to form their own labor union federation, known as the Change to Win Federation (CTW). As of June 2006, CTW had approximately six million members who belonged to seven member unions, including the International Brotherhood of Teamsters (Teamsters), Laborers’ International Union of North America (Laborers) and the United Brotherhood of Carpenters and Joiners of America (Carpenters). Despite the schism, AFL-CIO remains the largest labor union federation in the U.S., representing over nine million workers.

This historic split in the organized labor movement can be expected to have repercussions in the construction industry. CTW has identifi ed the construction industry as one of eight industries it will target in its organization efforts. Labor

experts predict that, at a minimum, non-union employers will see increased efforts to organize new members by both CTW and AFL-CIO member unions, while unionized construction contractors are expected to encounter more diffi cult bargaining with unions and may see an increase in jurisdictional disputes among unions.

Specifi cally, non-union employers should be prepared for aggressive organizing campaigns. In addition to typical union organizing efforts, unions are expected to use anti-corporate campaigns, i.e., aggressive public campaigns waged against employers designed to coerce employers into agreeing to union demands. The campaign is typically waged in the courts and regulatory agencies and through the media. The union feeds

please see Labor, page 13

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

Ryan, from page 2

please see Ryan, page 7

Ryan started a company called CCO (Construct, Consult, Operate) Entertainment. Ryan Companies is focused on doing more of the same types of projects in the future to build on the success of the Sears Centre Project, in particular the speed with which the building went up.

“There was very little time wasted,” Smith said. “We were able to do the job faster than somebody else would have because we were so involved in it. We were involved in every aspect.”

Those aspects included fi nancing, which is where Hoffman Estates came into play. Essentially, the Village served as CCO’s banker at the Sears Centre, issuing $50 million in bonds for the $62 million project. The price of the bonds will be paid off in increments during the next 15 years by the building owners.

Since the Poplar Creek Music Center closed in 1994, Hoffman Estates had been looking for an entertainment venue to help jumpstart struggling developments in the area. The Sears Centre opportunity presented itself after an unsuccessful bid by the Village to secure the stadium for Major League Soccer’s Chicago Fire, which ended up in Bridgeview.

“It’s a good investment,” Hoffman Estates Mayor William McLeod said. “It was tough to know what to expect, but I feel a lot more confi dent about it now than I used to. We were searching for an entertainment venue, because it would allow people who live in this area to have something like that in their backyard, when they’d normally need to drive into the city.“(Ryan Companies) did very good work. It’s a beautiful facility, and there’s not a bad seat in the place. We’re proud to have this facility in our community.”

The Sears Centre opened with four straight days of concerts. Duran Duran on Oct. 26 was followed by Bob Dylan the next two evenings, and Lionel Richie performed on Oct. 29. In addition to concerts and family events, the Sears Centre will be home to four professional sports teams. The Chicago Storm of the Major Indoor Soccer League, the Chicago Hounds of the United Hockey League and the Chicago Shamrox of the National Lacrosse League will call Hoffman Estates home, as will a still unnamed team that will play in the Continental Indoor Football League.“There really wasn’t any repetition, so the building was a challenge,” said Steve Golumbeck, one of three Project Managers at the Sears Centre. “We needed a lot of different angles.

“The beams on top of the building, had to be assembled on site and use a 300-ton crawler crane to lift them into place as one section. That was one of the things that made the project challenging. It was just a matter of fi guring out the best plan of action.”

Those challenges, however, didn’t stop the Ryan team from getting the job done on time. Nine 275-foot long steel trusses – each weighing at least 105 tons – made up the roof, and the last of those was snapped into place in February. Golumbeck credits the participation of the Village and the dedication of the workers on the project.

“Iron workers and pre-cast workers can work when it’s cold, so we were able to work year-round on the project,” Golumbeck said of the speed of the job. “Being able to work during the winter

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Ryan, from page 6

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saved us time and money in the rest of the project.”Most of the events have gone off without a hitch, and Ryan

has more than one reason to be proud of its work in Hoffman Estates.

“It’s been a good experience,” Smith said. “There are risks involved in anything, but we felt that with its location and with the Village playing an integral part, the arena would be a success.”

As families were gathering around the table for Thanksgiving, Fighting Illini basketball fans prepared to gather around a new arena in Hoffman Estates. The Sears Centre played host to the Chicago Invitational Challenge the Friday and Saturday after the holiday, which included Illinois-Chicago, Bradley, Rutgers, Miami (Ohio), Florida A&M, Jackson State and Savannah State - in addition to the Illini - in early season games.

The event is precisely the kind of thing McLeod had in mind when he supported the idea of an arena in Hoffman Estates.

“For people in Rockford and some of the other communities, it takes a lot of time off of their commute to see a great show,” McLeod said. “It’s what we wanted for this area.”

Top right: The entrance of the Sears Centre, located on Prairie Stone Parkway in Hoffman Estates. Bottom right: Sears Centre employees make the fi nal preparations for an indoor soccer game, the Chicago Storm’s home opener on Nov. 19. A team record of 5,165 people watched the Storm beat the California Cougars.

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

1900 1910 1920 1930

1940 1950 1960

Through The Years, With The Builders Association

1906: Gathering of builders calls for a new organization in Chicago. Sixty men sign a petition calling for the protection of the interests of builders in the City of Chicago and improvement of general work conditions. Organization adopts the name The Masons and Contractors Association.

1907: The Association approves the practice of paying tradespeople by check to prevent the contractor’s agents from being robbed of cash en route to paying their tradespeople. This method of payment becomes standard throughout the industry.

1909: Daniel Burnham’s “Plan of Chicago” laid out plans for

1943: The Associated Builders of Chicago merges with the BAC.

1950: Archer L. Jackson of the Builders Association comes to an agreement with carpenters and laborers to form the fi rst jointly administered pension trust funds between management and building unions in Chicago. From this initial effort came many of the benefi ts that tradespeople enjoy today, including pensions, health

including bylaws - for the fi rst time.

1923: The Imperial Hotel in Tokyo, Japan stands almost unharmed after a major earthquake. It was built using the principles of Chicago’s fl oating foundation and steel skeleton.

1924: With organized safety still a relatively new thing in the construction world, a fi rst of its kind safety campaign on Harrison and Wabash by Association member Henry Ericsson Company draws editors and photographers from building trades magazines nationwide.

1927: Sumner Sollitt, AGC President, and the Builders

the future of the city.

Association holds its fi rst annual banquet, charging $1 per plate.

1911: The Association’s infl uence begins to stretch beyond masons. A new name is adopted: The Builders Association of Chicago.

1918: The Builders Association plays an integral role in the formation of the Associated General Contractors of America (AGC), an organization built to further the construction industry on a national level.

1922: The Association creates a board of directors and drafts a constitution -

Association pay $300 for a silver cup to be awarded to the winner of the AGC’s annual safety contest.

1929: The Stock Market crashes and building activity slackens in Chicago, but doesn’t stop as contractors prepare for the 1933 World’s Fair.

1930: “The Great Depression” packs a punch to the Chicago construction industry, beginning a 20-year span in which only one major building – The Field Building – is built. The Association helps to ensure sure that the existing remains spread out, employing as many workers as possible.

Teddy Roosevelt is into his second term as President when the Builders Association is formed in 1906.

1914: Archduke Franz Ferdinand is as-sassinated in Sarajevo, setting off World War I.

1938: The Fair Labor Standards Act is passed, establishing a 40-hour work week and banning child labor. The Act becomes law in October and is upheld by the Supreme Court in February of 1941.

Pearl Harbor is bombed on Dec. 7, 1941; The United States enters World War II.

insurance and contributions for apprentice training.

1955: The nation’s two biggest labor organizations - the AFL and the CIO - merge to form an organization with a membership of 15 million.

1956: The Builders Association’s Hoist Committee comes up with a safer method of hoisting tradespeople that is approved by Building Commissioner George L. Ramsey. The previous summer, Ramsey ordered all jobs using material hoists to be shut down, putting contractors working on any building over four stories tall in a bind.

1963: The BAC produces and distributes the booklet Procedures of Administering the Single Bid, Single Contract System, one year after members rejected a plan for separate bids entitled The Chicago Plan for Construction Bidding.

1969: Chicago gets its fi rst building of 100 fl oors or more as the John Hancock Center opens its doors.

1969: American Neil Arm-strong walks on the moon.

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h ild i iThe Builders Association: A Century Of Service To The

Commercial Construction Industry

1970

1980

1990

2000

1971: The Association plays a major role in forming the Mid-America Regional Bargaining Association (MARBA) to help combat labor problems and a lack of stability in the market. The BAC Board of Directors initiated the one-year study that led to MARBA.

In response to a call for greater involvement of minorities in the construction fi eld, the Association’s Minority Relations Committee forms a strategy for change, calling for each trade group to set up a minority entrance program.

1974: The 110-story Sears Tower opens. It is currently the largest building in North America at 1,450 feet.

1976: BAC helps to form a Political Action Committee to look out for the political interests of the construction industry.

1989: The end of the Cold War is symbolized by the dis-mantling of the Berlin Wall.

1988: The Builders Association, along with other MARBA associations, forms the Construction Industry Service Corporation (CISCO) to encourage contractors, labor and construction users to talk and work together.

1989: The Association is instrumental in the formation of the Chicagoland Construction Safety Council.

2003: The Association forms a partnership with the Occupational Safety and Health Alliance (OSHA). This partnership is designed to help companies maintain and improve safety procedures and turn the sometimes adversarial relationship between construction companies and OSHA into a constructive partnership.

2005: The Association changes its name to the Builders Association.

The Association, the City Colleges of Chicago and three community programs

1995: The Association plays a key role in the repeal of the Illinois Structural Work Act, which had cost the industry close to $300 million according to a 1998 study by the Watson-Wyatt Group.

1973: Syria and Egypt cease shipping petroleum, creating the 1973 oil crisis.

2001: Terrorist attacks de-stroy New York’s World Trade Center on Sept. 11.

launch the Construction Career opportunity program, designed to increase the involvement of minorities in Chicago’s construction workforce. As of late 2006, twenty-nine students have been sponsored by participating contractors into union apprenticeship programs. Seventeen of these students are still working.

2006: Builders Association celebrates its 100th Anniversary.

100thAnniversary

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of Bulley & Andrews; Leon LaJeunessee of Custom Contracting Ltd.; J. David Pepper of Pepper Construction Company; John Russell of W.E. O’Neil Construction Company; Howard Strong of George Sollitt Construction Company; Sheri Tantari of McShane Construction Corporation; Dana Thorne of Thorne Associates; and R. Lynn Treat of Ryan Companies.

Mr. O’Malley has worked for Case Companies for over 50 years. He began as a Laborer while attending Loyola University and was promoted to Labor Foreman, Estimator, Project Manager, Vice President and President - a position he’s held for more than 20 years.

John is a member of the Association of Drilled Shaft Contractors (ADSC), the Deep Foundations Institute (DFI) and the Associated General Contractors (AGC).

Board, from page 3

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

Builders Association Yearly Wrap-UpOpportunity was a watchword for

the Builders Association in 2006, as the association spent its 100th year seeking to diversify the workforce while continuing to serve its over 140 members.

In 2005, the Builders Association teamed with community leaders and the City Colleges of Chicago to launch the Construction Career Opportunity Program (CCOP), a collective effort to increase minority involvement in the construction industry. That program produced 29 full-time hires as of the end of 2006.

Students in the program attend courses at Dawson Technical Institute to learn skills in basic or advanced carpentry, masonry, bricklaying or plumbing and fi re protection. The Builders Association created a $25,000 fund to provide graduates of the program with money to cover apprenticeship fees and other expenses, and lined up more than 20 companies who committed to sponsor graduates into union apprenticeships.

An interview day in May drew 50 students from Dawson Tech, with 12 Builders Association member companies there to dispense information and conduct interviews.

The Spring Meeting featured a presentation by Arthur B. Smith of Ogletree, Deakins, Nash, Smoak & Stewart. Smith covered topics surrounding the break-up of the AFL-CIO, a topic which was discussed again at the Fall Meeting in October. Safety award winners were also highlighted at the Spring Meeting. The Builders Association continued to bring safety issues to the forefront by honoring many of its members in their commitments to jobsite safety.

In June, a seminar on Building Information Modeling educated members on how electronic modeling systems could help their businesses. Presented by Doug Maiden of Beck Technologies, the seminar outlined why BIM and 3D Modeling will soon be industry standards. Building Information Modeling can point out diffi culties before they occur on the jobsite and can save contractors money, something reinforced later in the year in the AGC’s “The Contractors Guide To BIM.”

Sweltering heat early in the day and a tornado warning late in the day couldn’t put a damper on the annual Builders Foundation Golf Outing. The July 27 event at Makray Memorial Golf Club in

Barrington netted over $30,000 for future scholarships for students studying construction. This year’s scholarships were awarded to: Takeiya Hedrick of Calumet City; Jessica Hladik of North Aurora; Emily Hubacek of Schererville; and Emily Steimel of DeKalb.

M e e t i n g s throughout the year helped members keep in touch with key topics in the industry.

The Builders Association hosted Contractor Safety Forums, including a presentation on Personal Protective Equipment by Paul Satti in September. A forum in June helped employers navigate the new Laborers’ contract.

The Fall Meeting in October brought National Construction Alliance Executive Vice President Ray Poupore to the area. Poupore discussed the formation of the NCA – which includes the Laborers International Union of North America, the International Union of Operating Engineers and the United Brotherhood of Carpenters and Joiners of America. Poupore spoke of the need for the NCA, the differences between the NCA and the AFL-CIO and answered questions from the members.

Near the end of the year, John O’Malley of Case Foundation Company was named to the Board of Directors., and the 100th

Anniversary Annual Meeting took place at The Drake Hotel in Chicago. In addition to recognizing Mayor Richard M. Daley and Eddie Read for their contributions to construction and the community with its fi rst Community Builder awards, the Builders Association recognized companies celebrating anniversaries with the organization.

Companies honored at the Annual Meeting included: Henry Bros. Company (70 years); Pepper Construction Company (70 years); Herlihy Mid-Continent Company (70 years); William J. Scown Building Company (60 years); Glenn

H. Johnson Construction Company (30 years); James Schaeffer & Schimming, Inc. (30 years); Warady & Davis LLP (30 years); The Levy Company (25 years); DS&P Insurance Services, Inc. (25 years); Thorne Associates (20 years); Flaherty Construction (10 years); and Tyler Lane Construction, Inc. (10 years).

The Builders Foundation Golf Outing was one of many opportunities for members to network with their peers in 2006.

For Information On Advertising, Call

Andy Cole at 847-318-8585.

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GREEN, from page 1

Economists: Commercial Construction To Rise In 2007AGC News

The new congress, infl ation prices that remain high and a steady commercial construction market were some points hit on by three construction economy experts during an economic outlook conference call by the Associated General Contractors of America.

The call included comments from: Ken Simonson, Chief Economist of the AGC; Jim Haughey, Chief Economist of Reed Construction Data; and Jack Basso, Chief Operating Offi cer of the American Association of State Highway & Transportation Offi cials.

Haughey remarked that overall construction spending was up 4.9 percent in 2006, is projected to rise another 3.5 percent in 2007 and could see around a 7 percent increase in 2008. A 16 percent gain is expected in healthcare building in the coming year and the educational market will remain strong, according to Haughey.

The areas of slowest construction growth in the country will remain the northeastern and pacifi c states. Areas of highest growth will be in the south and the Gulf Coast, where rebuilding continues after Hurricane Katrina.

While talk continues that the industry is experiencing a shortage of workers, the numbers don’t always tell the same story, according to Simonson.

“It’s easy to exaggerate the shortage of workers,” Simonson

said. “We’ve been hearing for years that the construction market hasn’t been able to attract new entrants, but the numbers say that the people in the industry have grown double or triple the rate of the economy.”

Immigration legislation was on the minds of the economists, who fi elded questions on how the newly-elected Democratic Senate and House of Representatives might change things. An abundance of low-skilled workers are available, but that number gets lower as the skill level escalates.

“There is an abundant supply of workers at the low-skilled end,” Haughey said. “The minimum wage increase might have an impact on other industries, but the impact on construction will be marginal because so few people in construction are actually impacted by minimum wage.”

After a period of heavy infl ation in the construction industry, next year’s numbers may seem like a brief reprieve. However, Simonson is quick to point out that numbers are still high.“It looks like a bit of a breather on infl ation,” he said. “Infl ation has been increasing at a rate of close to 10 percent. It looks like it’s going to be down to 6 ½ percent for the next year, but 6 ½ percent is still huge. There was a recent slight drop in oil prices, but it seems as if that’s going to end.”

Look for more on the economic outlook for the coming year in future editions of The Builder.

a hurry.“The AGC released a guide (Contractors Guide To BIM)

because they understand how critical it is that contractors pick up on this. BIM and sustainability, be it with LEED or Green Globes, are interlinked. It all goes back to getting a building that performs better. Owners want to get their money’s worth.”The Builder had a chance to discuss these advances with a number of individuals experienced and knowledgeable in green building and other industry trends. Thomas Taylor of Vertegy Consultants, Leon LaJeunesse of Custom Contracting and Vicki Worden of the Green Building Initiative joined Vyas in discussing how sustainable building ties into BIM and the future of the industry. You’ll see what they have to say in this Builder and the next.

In addition, two education professionals were asked what impact changes to modernize the construction industry have on teaching the future leaders of the industry.

Educational ImpactAs the number of LEED and Green Globes buildings grows, so

too does the impact of sustainable building on the construction industry … and how tomorrow’s leaders in the industry will be educated.

In classrooms around the country, students are learning how green building ties into BIM and other industry advancements. As construction methods shift, educators like Dr. James Adrian of Bradley University’s Civil Engineering and Construction program are helping students roll with the changes by expanding course offerings and looking into new technology.

“Green building isn’t a fad; it’s something that going to be here to stay, so it’s something students need to know as much about as

possible,” Dr. Adrian said. “If we see a trend in the construction industry, we’ll offer a course on it as an elective, but we want to be certain we don’t just create a course for every buzz word. Some are going to be fads that aren’t going to last.

“Our reaction to the current wave of technology as educators has been to keep up with it in the classroom. We’re spending time on BIM and Autocad and stressing the integration of all these things and how they’re going to affect the construction industry.”

An increased demand for green building may lead to an educational center geared toward those trends in the long-term plans for Indiana State University, according to a member of its faculty.

“We’re actually considering the idea of promoting and building a center for sustainable construction a couple of blocks from where we’re at,” said Dr. Lee Ellingson, a Department of Manufacturing and Construction Technology professor at Indiana State University. “If that ever comes to pass, obviously it would change our curriculum a great deal.”

Dr. Adrian wants to highlight the advantages of a college education, but also wants his students to keep in touch with what the students from the “School of Hard Knocks” are learning.

“I am concerned a bit as an educator, because even with all the technological advancements, we need to be sure our students still know which end of the shovel to pick up,” Dr. Adrian said. “Also, it’s important that we not lose sight of the need for fi eld experience. There’s always been this gap between college graduates and the guys who have used that time practicing in the fi eld. This new technology could make that gap bigger.”

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

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

Member Marketplace

S.G. Krauss Co. engineers, fabricates and erects steel bar joist, metal roof deck, structural steel and ornamental iron for commercial, industrial and institutional buildings. In the past 26 years, S.G. Krauss Co. has erected millions of square feet of structural steel frames and has worked with almost every prominent general contractor in the Chicago area.

S.G. Krauss Co. 220 Stanley St.

Elk Grove, IL 60007847-290-0988

www.sgkrauss.comSam Krauss, President

info@sgkrauss.com

Case Foundation Company is a leading specialty founda-tion contractor with more than 50 years of commitment, innovation and quality performance in the foundation con-struction industry. Case specializes in drilled shafts (casis-son) and concrete slurry walls, with a nationwide reputation for their capacity to meet challenges and fi nd solutions.

Case Foundation Company1325 W. Lake St., P.O. Box 40

Roselle, IL 60172630-529-2911

www.casefoundation.comJohn E. O’Malley, President

jeomalley@casefoundation.com

The Builders Association’s Affi liate members are respectable and responsible companies. The products and services are among the best in the area in their fi elds. By virtue of their association membership, these companies support the Chicagoland construction industry.

T h e B u i l d e r s A s s o c i a t i o n e n c o u r a g e s i t s c o n t r a c t o r s t o u s e A f f i l i a t e m e m b e r s w h e n l o o k i n g f o r p r o d u c t s o r s e r v i c e s.

please see milestones, page 16

McHugh Construction Company was named the general contractor on Chicago’s Aqua Tower in November. The “waves” of concrete on the balconies highlight the condominium facility. The 82-story tower will include levels of parking below Columbus Drive, and an 80,000 square foot terrace with gardens, gazebos, pools, hot tubs, a running track and a fi re pit.

The project developer is Lakeshore East LLC, an affi liated of Magellan Development Group LLC. Studio Gang Architects is the design architect, with Lowenberg Architects serving as the architect of record.

Pepper Construction Group has announced the opening of its next location – Pepper Construction of Ohio. The offi ce will be located in the Columbus area and will be led by Paul Francois, who will be President of Pepper Construction of Ohio after serving Pepper in other capacities for 14 years.

Pepper’s plan includes: expanding work with current clients in Ohio; working with new clients in the area; and expanding work in the surrounding states.

Mr. Francois served as Vice President of Pepper Construction Company in

Chicago. “Pepper has

always been a r e l a t i o n s h i p -driven, long-term partner for our clients,” Francois said through a Pepper press release. “We feel like the Ohio market is a great fi t for our culture and Midwestern values and we look forward to reinforcing our existing relationships as well as building new ones with clients throughout the region.”

Pepper Construction Company Chief Executive Offi cer Dave Pepper indicated that Francois’ history of customer service made him the right choice to lead the Ohio venture.

“Paul Francois has proven his dedication to customer satisfaction and to creating a values-driven work culture,” Pepper said. “With Paul’s background, Pepper’s culture and existing relationships, we felt like it was an easy choice to call Ohio home.”

The Pepper Construction of Ohio offi ce will be located in Dublin, just north

of Columbus.

Suburban Gastroenterology, Ltd. has chosen McShane Construction Corporation to complete a new Ambulatory Surgery Center and medical offi ce building in Naperville. Eight examination rooms will be located in the facility, along with doctors’ offi ces, reception areas, a business offi ce and two operating rooms. Shive-Hattery is the architect and RMK Design Associated of Colorado Springs is handling the interior design for the project, which is scheduled for completion in May of 2007.

In addition, McShane Construction Corporation recently completed the second phase of the Bedford Park Business Center on behalf of Purinton Development, LLC.

The second section of the Business Center is a 341,144 square foot facility designed to provide modern industrial space to manufacturers and distributors. McShane had completed the fi rst phase of the project in November of 2005.

Francois

12

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V O L U M E 1 0 ; I S S U E 5V O L U M E 1 0 ; I S S U E 5

negative information, usually unrelated to labor disputes and sometimes untrue, in an effort to tarnish the employer’s public reputation.

Employers who are already unionized are also likely to experience more aggressive union activity. In addition to the emphasis on organizing new members, both AFL-CIO and CTW member unions are expected to pursue more aggressive bargaining stances in an effort to demonstrate that their federation is more successful in protecting workers’ rights. Because of this aggressive bargaining, employers should be prepared for an increased possibility of strikes due to failed collective bargaining.

This possibility has already been realized by at least one group of contractors. In June 2006, the Laborers struck members of a Chicago-area bargaining association after its contract expired and bargaining efforts failed. In addition to revealing the hard bargaining stance unions are expected to take in contract negotiations, this strike demonstrated the cohesiveness of the building trades unions. Despite the CTW/AFL-CIO split at the national level, local union members remained loyal to one

another as other building trades unions refused to cross the Laborers’ picket lines, effectively shutting down work on major construction sites in Chicago.

While AFL-CIO and CTW member unions have pledged to continue to work together at the local level, many labor experts doubt local cooperation will continue.

If this is the case, unionized employers can expect jurisdictional disputes over which unions’ members have a right to perform certain work. In the past, such disputes have typically been resolved through the AFL-CIO’s Building and Construction Trades Department (BCTD) or by the National Labor Relations Board (NLRB). CTW member unions representing construction workers and the International Union of Operating Engineers have withdrawn from the BCTD and formed their own body, the National Construction Alliance (NCA). While the NCA is optimistic that the breakup will result in fewer jurisdictional disputes, the existence of dual bodies responsible for assigning work in the construction trade will likely create disputes. With no established method for resolving disputes

and no additional allocation of NLRB funds toward dispute resolution, union in-fi ghting may increase and job sites may be disrupted if strikes are used to protest work assignments to unions without traditional jurisdiction over that work.

While these consequences of the AFL-CIO’s breakup should be expected, employers can take steps to minimize the effect on their business. Non-union employers who would like to keep their non-union status should review their policies and procedures to ensure that they are maintaining a positive work environment. Moreover, non-union employers should address any vulnerabilities that may be exploited by an anti-corporate campaign. Union employers must also take steps to minimize the disruption aggressive union tactics might have on their operations. Union employers should be prepared for aggressive bargaining by unions and explore methods to increase their bargaining power before contracts expire. Additionally, union employers should create plans to deal with strikes and jurisdictional disputes in ways that will minimize work stoppages and disruptions on the job site.

Labor, from page 5

13

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14please see 5D CAD, page 15

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

Take FiveGuest Article

5D Integrated Process Part Of Changing Face

Of Construction Industry

BY J.T. BURKCADeshack

The Master Builder of old knew how to construct the structure as he gathered all available resources together for successful completion of his work. Today’s Master Builder is evolving project by project with the available tools, materials and resources dynamically changing the playing fi eld where we build, each new project advancing the process.

Construction industry trends are integrating the supply chain, planning for the building life cycle and the dramatic technological change to support all of the building systems and data. What follows is a more effi cient concentric process with integrated multi-tasking throughout the design, estimating and building process.

While these trends are fairly new to the AEC industry, these techniques are being perfected in aerospace, shipbuilding and automotive fi elds. Central databases of virtual model integrate the different facets of the business processes and lead to more effi cient design and fabrication with faster delivery at less cost.

This brings us to the hot topic in the AEC industry and that is the 5D Integrated Process. 5D CAD is the use of a 1D program data, 2D documentation of the work, a 3D virtual model to digitally defi ne the space, 4D construction simulation of the model with a schedule of the work, and the 5D date to derive cost and allocate resources.

New, But Not So NewThe process is fairly new to mainstream AEC in the United

States, but the Virtual Model or BIM-Building Information Model process approach is being used worldwide by many architects and builders. This process has matured in recent years and many buildings being built today use varying degrees of the 5D approach. Other countries that require building data to support the permit and construction process have advanced the process to being mainstream and the 2D linear process is no longer in use or competitive. Throughout the world, owners are taking advantage of the visualization and effi ciencies in this process that saves time and money.

How Will The Trend To 5D

Change The Business Of AEC?AEC tools are becoming integrated from the project

programming phase through to the design, construction and eventual maintenance of the facility. A complete 5D process begins with data gathering and requirements management leading to design and analysis of the solution. This approach starts with the integration of the work fl ow process, and the initial program database begins to connect with the digital model. As the process integrates data and model information, this method reduces more risk through improved coordination.

Benefits Of 5D/BIM ProcessMany advantages of the BIM approach are realized due to

central integration of the complete graphic and information database. Sharing a single data source allows greater focus on design (instead of documentation) for architects and reduces errors by improving collaboration and communication between the project team. The live connected model process also means that the documents are coordinated between plan, elevation, section and 3D views at all times. This reduces fi eld notices and information requests. The design solutions are also of higher quality due to real time 3D interaction for the designer and fabricator.

Shorter Project Delivery CycleThe traditional project phasing process is very linear. The 5D

BIM process speeds the work fl ow as more tasks can be performed together in combination with the 5D applications generating automatic views and reports. More time can be spent on design with the documentation process integrated as a byproduct. Energy and cost analysis can occur earlier in the process, code compliance and clash detection can be performed with model checking applications, and options or alternates can be quickly managed by the model/data process. The synchronization of design disciplines evolving into the construction process puts everyone on the same page.

Profitability Gains Are Higher With 5D

As the 5D process saves time with better output, owners, designers and builders are realizing the gain in profi tability due to

the applied methods. Designers are achieving 25-35 percent return on their investment in 5D, while contractors and owners look to reduce overall construction costs by 2-5 percent. This makes for an increase in profi tability over the traditional 2D process, a very achievable expectation for the 5D method. The reduced timeline allows for cost savings due to contractors and engineers being able to review the project earlier and

Vol 10, Issue 5.indd 14Vol 10, Issue 5.indd 14 12/27/2006 11:05:15 AM12/27/2006 11:05:15 AM

15

5D CAD, from page 14

V O L U M E 1 0 ; I S S U E 5V O L U M E 1 0 ; I S S U E 5

costs can be reported that refl ect the initial requirements and are dynamically changing as the design develops.

With information connected to the 5D model, confl ict and analysis reports let both the owner and designer know when design solutions are effective. Simple mass models and bubble diagram layouts are automatically generated with the programming/BIM applications.

Design With 5D CADThe model method allows for smooth communication between

the architect and the design team. Sketch modeling programs are available that can take early design models into advanced 5D applications for development and documentation. Output can range from sketch renders, still views, animations and virtual reality objects and scenes. Curved surfaces and organic modeling allow for design freedom and analysis of complex solutions.

Building Systems ModelingBuilding subsystems or the structural, mechanical,

electrical and plumbing components can be integrated into the architectural model for complete building design coordination. An open source computer code format has been developed for model information to be transferred from BIM applications to other analytical programs. This language IFC (Industry Foundation Classes) is not vendor specifi c, so applications that can read and write this format will support the seamless workfl ow of design and engineering. This open source format is also used as a means to transfer the digital model to applications for energy analysis, code review, clash detection and cost estimating.

Documentation With 5D BIMAutomatic construction documentation from the

design model does not consist of a magic red button for working drawings. However, many of the tasks can be directly derived from the model.

Dimensioning is both automatic and associative while intelligent objects are scale-sensitive and lead to enhanced drafting features. The model produces elevations, sections and schedules automatically and model views are directly linked to the drawing sheet layouts. This process reduces errors and redlining and also links drawing info such as sheet/drawing numbers to section and detail symbols.

GSA’s (General Services Administration) Public Buildings Service is the largest public real estate organization in the country. For all major projects (prospectus-level) receiving design funding in fi scal year 2007 and beyond, GSA requires spatial program BIMs be the minimum requirements for submission to the Offi ce of the Chief Architect for Final Concept approvals by the PBS Commissioner.

Construction Process RedefinedEstimating, sequencing, procurement and site

management are part of the date set for intelligent models. This integration of the data with the model is

please see 5D CAD, page 16

the interim cost of money being less with a shorter schedule.

Master Planning And Programming With 5D

A questionnaire given to the owner to document the program requirements. This data can seamlessly fl ow into the digital model and create a preliminary massing model from the criteria. Information is captured electronically about the building and quantifi es ideas, constraints and relational requirements. Key requirements are quickly identifi ed and tracked through the design process as this information is carried over to the 5D CAD model environment. In this stage the initial defi nition of the site and layout of the building begins the tracking of compliance against requirements. Baseline estimates of total space usage and

Vol 10, Issue 5.indd 15Vol 10, Issue 5.indd 15 12/27/2006 11:05:16 AM12/27/2006 11:05:16 AM

16

BuilderThe

The Builder is published periodically by the Builders Association, a trade association of com-mercial, industrial and institutional general con-tractors and affi liated industry fi rms dedicated to quality construction in the Chicagoland area.

2006 Board of DirectorsJohn Benz

William J. Scown Building Company

George FerrellHenry Bros. Co.

Paul HellermannBulley & Andrews

Sam KraussS.G. Krauss

Leon LaJeunesseCustom Contracting, Ltd.

J. David PepperPepper Companies

John RussellW.E. O’Neil Construction Co.

Howard StrongGeorge Sollitt Construction Co.

Sheri TantariMcShane Construction Corp.

Dana ThorneThorne Associates

Lynn TreatRyan Companies US, Inc.

The Builder StaffAndy Cole

Editor, Advertising Sales

Builders Association9550 W. Higgins Rd., Suite 380

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

Copyright ©2006. All Rights Reserved.

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

5D CAD, from page 15

Representing the Associated General Contractors of America in the

Chicagoland metropolitan area.

proving ton be the preferred process for major projects with complex solutions and requirements. Pre-construction services provide for visualization, site logistics, estimates and scheduling using the data connected model. Construction models differ from architects models as the date must be associated properly with the digital model. Templates help to defi ne the connection process and a new role of the construction modeler is emerging. Recipes are defi ned which establish the methods and resources to be used or allocating the cost.

These methods allow contractors to minimize downstream problems and have a much clearer idea of what’ going to happen before any dirt is turned. Many 5D aspects aid in construction risk management, constructability analysis and planning and improved overall communications with the project team. Variance estimating and value engineering that consider design options can now be performed in a real-time environment as opposed to waiting for new information to be processed through traditional 2D take-offs.

Collaboration Platform ShiftThe use of 5D or BIM means a radical

change in process and deliverables for architects along with the process shift for contractors and builders. The project team will have to adjust their understanding of collaboration as one occurring synchronously as opposed to staggering events. Architects will be sharing project models and data that had previously been limited to 2D output formats supporting the linear process.

Owners are requesting the 5D process

that saves time and money, and contractors are fi nding competitive edges with processes that deliver these savings to the owner. Insurance carriers will require or create incentives for fi rms to have quality assurance procedures in that include the use of Building Information Modeling. As these methods become mainstream, new contractual language, fee structures and project deliverables will emerge as the standard work practice.

The Future Is NowMore projects are being completed

with the 5D BIM process now than ever before. As this technology change is more signifi cant that manual drafting to computer based drawing, early adopters will benefi t greatly by gaining market share and new business. It is easy to consider the new opportunities many fi rms would have with a good 5D model of the current projects in design and construction. Those choosing these new methods are fi nding themselves leading their competitors while others are left behind caught up in traditional process and believing that change is not needed as they remain stuck in the slow lane.

Change is inevitable. The 5D process is not a fad, but is the future, and the future is now.

J.T. Burk is the Principal of CADeshack and has used the 5D building process for 14 years, when he initially formed the OwneRepGroup, a management and architectural company in Houston & Chicago. CADeshack and the OwneRep Group have an offi ce in Glenview. You may reach him by email at jtburk@jtburk.com or visit www.jtburk.com or www.5dcad.com.

Clark Construction Group is part of a team that has been awarded a $186.9 million contract at the United States Navy’s Recruit Training Command Center in Great Lakes. CBZG Design Builders, LLC – which includes Clark, Blinderman Construction Company, M+W Zander U.S. Operations and Graef, Anhalt, Schloemer & Assoc. – will rebuild the Camp Porter Barracks.

The Camp Porter Barracks project will complete $787 million worth of changes by the Navy at what is now its only boot camp, which was opened in 1911.The project includes three recruit barracks, a visitors center, an arms marksmanship trainer, a parking structure and the demolition of 14 buildings. Target completion date is November, 2010.

Milestones, from page 12

Interested in advertising in The Builder? Contact Andy Cole at acole@bldrs.org.

Vol 10, Issue 5.indd 16Vol 10, Issue 5.indd 16 12/27/2006 11:05:16 AM12/27/2006 11:05:16 AM