GCA Construction News Bulletin February 2014

NEWS BULLETIN Vol.55 Issue 02FEBRUARY 2014

Guam Contractors’ Association

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Construction Headline23S.A.M.E.

COMMITTEE UPDATE

FEATURE STORY

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CONSTRUCTION HEADLINE

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GARRISON REPORT

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242 W. Harmon Industrial Park RD, Guam 96913Tel: (671) 646-9524/40 Fax: (671) 649-3888

[email protected]

GUAM’S LEADEROCCUPATIONAL ENVIRONMENTALSAFETY EQUIPMENT & SUPPLIES

Guam Contractor’s Association (GCA) in conjunction with AdzTech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA. While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA of any correc-tions as needed. Opinions and edito-rial content of this publication may not necessarily be those of the publisher, staff, GCA members, GCA Board of Directors and advertisers. For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at [email protected]. Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 718 N. Marine Corps Drive,Suite 203, East West Business Center, Upper Tumon, Guam.

To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: [email protected]

Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

PUBLISHER:James Martinez

SALES & MARKETINGDIRECTOR:Geri Leon Guerrero

AD SALES:Tom MendiolaJaceth Duenas

PRODUCTION:Geri Leon GuerreroChristopher “Taco” Rowland

PHOTOGRAPHERS:Christopher “Taco” Rowland

EDITOR:Adztech

CONTRIBUTING WRITERS:John RobertsonDavid F. MacalusoShawn GumataotaoGrace DonaldsonTed Garrison

GCA STAFF:Francine ArceoDesiree Lizama

COVER:Chuck Ada, GM for GIAA

THETEAMTHEDIRECTORS THEEDITORIALSPRESIDENTJames A. Martinez, GCA

PAST CHAIRMANRobert Salas, Landscape Management Systems

CHAIRMAN - ELECTTom Anderson, Black Construction Corporation

VICE CHAIRMAN - ELECTArt Chan, Hawaiian Rock Products

SECRETARY/TREASURERJohn Sage, WATTS Constructors

CONTRACTORS DIRECTORS:Narci Dimaoala, Amazon Construction

Juno Eun, Core Tech International

Tom Nielsen, Maeda Pacific Corporation

Tom San Nicolas, dck pacific guam LLC

John Robertson, AmOrient Contracting

ASSOCIATE DIRECTORS:Paul Calvo, Calvo’s Insurance Underwriters

Carlo Leon Guerrero, M80 Office Systems Inc.

Patty Lizama, Pacific Isla Life

Michael Kikuta, Matson Navigation

Guam ContractorsAssociation

Guam Contractor’s Association (GCA) in conjunction with AdzTech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA. While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA of any correc-tions as needed. Opinions and edito-rial content of this publication may not necessarily be those of the publisher, staff, GCA members, GCA Board of Directors and advertisers. For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at [email protected]. Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 718 N. Marine Corps Drive,Suite 203, East West Business Center, Upper Tumon, Guam.

To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: [email protected]

Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

PUBLISHER:James Martinez

SALES & MARKETINGDIRECTOR:Geri Leon Guerrero

AD SALES:Tom MendiolaJaceth Duenas

PRODUCTION:Geri Leon GuerreroChristopher “Taco” Rowland

PHOTOGRAPHERS:Christopher “Taco” Rowland

EDITOR:Adztech

CONTRIBUTING WRITERS:John RobertsonDavid F. MacalusoShawn GumataotaoGrace DonaldsonTed Garrison

GCA STAFF:Francine ArceoDesiree Lizama

COVER:Chuck Ada, GM for GIAA

THETEAMTHEDIRECTORS THEEDITORIALSPRESIDENTJames A. Martinez, GCA

PAST CHAIRMANRobert Salas, Landscape Management Systems

CHAIRMAN - ELECTTom Anderson, Black Construction Corporation

VICE CHAIRMAN - ELECTArt Chan, Hawaiian Rock Products

SECRETARY/TREASURERJohn Sage, WATTS Constructors

CONTRACTORS DIRECTORS:Narci Dimaoala, Amazon Construction

Juno Eun, Core Tech International

Tom Nielsen, Maeda Pacific Corporation

Tom San Nicolas, dck pacific guam LLC

John Robertson, AmOrient Contracting

ASSOCIATE DIRECTORS:Paul Calvo, Calvo’s Insurance Underwriters

Carlo Leon Guerrero, M80 Office Systems Inc.

Patty Lizama, Pacific Isla Life

Michael Kikuta, Matson Navigation

Guam ContractorsAssociation

Guest speaker for SAME’s January membership meeting was Chris Lund, PE, Gershman, Brickner & Bratton, Inc.’s (GBB) Vice President and Senior Receiver Project Engineer. GBB is the federal receiver overseeing the closure construction of the Ordot dump. Mr. Lund gave an overview to SAME regarding the closure construction procedure and the systems that must

Total closure construction will be carried out in two phases. Phase I will concentrate on the consolidation of the waste

material and the east half of the cover and collection systems. Phase II is similar to Phase I but will focus on the

and maintenance of these systems throughout the closure process as well as the post-closure care period which usually consists of 30 years.

Photos/Data courtesy of GBB

Ordot Dump Closure Construction

SAME Monthly Membership MeetingJanuary 16, 2014

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To join SAME Guam Post, log on to SAME.org and click on “Membership” at the top of the home page.

protect the foundation layer and to hold everything in place, a Geocell

other natural waterways. A leachate collection and removal system is

it into one of three 16,000-gallon storage tanks at a pump station to be built near Agueda I. Johnston Middle School.

Gas production is a natural by-product of the waste decomposition process. Consisting mostly of methane, these gases can become harmful, creating a risk for �re, explosions, air and groundwater

put in place.

A series of collection and conveyance swales, channels, ponds and discharge structures will be installed to collect and manage stormwater

G UA M S OL I D WAST E

R E C E I V E R S H I P

INFORMATION CENTER

Want to �nd out the lastest

updates regarding the Ordot

closure construction?

F ind a l l t he l ate s t ne ws

coverage as well as information

on the orginal court order,

the process of appointing a

Receiver and updates from the

Guam Solid Waste Authority.

www.guamsolidwastereceiver.org

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The realignment of military forces in the western pacific is finally getting under way. This was the topic of the January CNB article and will be elaborated on by NAVFAC Marianas Commanding Officer CAPT Glenn Shephard in a joint meeting of GCA, SAME Guam Post and other A-E firms on 20th February. Although a number of restrictions remain, there is over $490 Mil of construction spending budgeted for Guam and the region for the remaining eight months of FY2014. DB-MACC teams are now preparing proposals for about $300 Mil on multiple MILCON projects. This is expected to be only the beginning with a greater volume of MILCON projects due out in FY2015 and beyond. The Supplemental Envi-ronmental Impact Statement is due out late this year in draft form with Record of Decision to be signed in second quarter of FY2015. That is only a little more than a year away.

Along with the good news for Guam’s engineering and construction industry – come challenges. Construction requires resources in the form of labor, equipment and materials. During the pause between the original announce-ment of a military buildup in Guam and the current transformation of the same, contractors have acquired more and better equipment. Local suppliers of materials such as asphalt and concrete have expanded plants to cope with an increase in volume of those critical materials. The bulk of construction

management. All instructors are trained in their respective field and certified.

As mentioned earlier, Guam’s situation is unique. In the past, Guam’s contrac-tors chose, out of necessity, to bring in foreign labor, primarily from the Philippines. A large number of the workers brought to Guam under H2B visas have remained in Guam and have families here. They make up the largest portion of the workforce today but many of them are approaching retirement age. In some cases, their offspring have entered the construction workforce while others have gone for university and advanced degrees and have entered into professional careers in Guam or in CONUS. Reliance on new workers from Asia may not be as successful as in the past. With Asian economies becoming more vibrant if not booming, the better tradesmen can be expected to take jobs at home.

There is currently two important sources of manpower upon which Workforce Development can rely. The first is members of the military, recently returned from Afghanistan. These men and women are well trained, disciplined and need jobs. These U.S. citizens that have put their lives at risk in service to our nation deserve the highest consideration in job placement. While some will enter other careers, a significant number would find a construction trade to fit their career objective. The Guam Community College and the GCA Trades Academy are reaching out to these members of the Guam community to offer whatever training they desire. They need jobs in the industry and preferably in an apprenticeship program to begin with. This is where our contractors fits in.

The second source of manpower for Workforce Development is citizens from the Federated States of Microne-sia (Pohnpei, Kosrae, Chuuk and Yap), the Republic of the Marshall Islands, and the Republic of Palau. Many of these men and women are already residents of Guam, having migrated here in search of jobs and better economic possibilities. Some are already working in the construction industry after having received training

at the GCA Trades Academy. Some individuals from the outer islands were unable to secure a High School diploma because of circumstances on their home island and must study and obtain the GED as part of their continuing education. This portion of their education is being provided by Guam Community College and the Center for Micronesian Empowerment (CME), an organization that has since inception been closely linked with the GCA Trades Academy. The CME is also providing training in work ethics and how to assimilate into the local Guam Culture.

How do we approach this challenge here in Guam? Obviously, each contractor will have his or her own way of tackling the difficulty and perhaps in a combination of ways. There follows some recommendations:

Increase Wages for Certified Trades-men: Wages in Guam are generally set by what is called “Prevailing Wage”. This approach is always looking back-ward and change comes very slowly if at all. It provides no impetus for adjust-ment relative to the cost of living index or skill level. Also, it does not include a range of wages within each trade. To attract skilled workers into the Guam market, there must be some upward adjustment in wages paid to workers and this is not easy for the employer in a competitive environment.

Recommendation #1 – Set a higher wage for those tradesmen with certification based on training and competency testing.

Improve Cooperation between Employ-ers in Workforce Development: There is reluctance by some employers to institute workforce training out of concern that once trained, the worker will leave and secure employment with a competitor. This cannot be eliminated completely but can be controlled to some extent by cooperation between employers. On the other hand, if all contractors are actively providing training to workers, then the entirety of the Guam workforce becomes trained and movement between employers has little impact.

Recommendation #2: - All contractors provide workforce training and upgrade the level of craftsmanship with focus on Workforce Development.

Understanding and Participation by the Military: The largest user of construc-tion services on Guam is the military. NAVFAC in particular has the most to gain from the results of Workforce Development. It ensures high quality construction with a minimum of rework. Projects can be completed in less time and at the most favorable cost as a result of improved efficiency. The military can be instrumental in bringing about needed change by tackling the problem at the root rather than dealing with the negative consequences. Major private-sector American users of construction services have formed an association called CURT (Construction Users Round Table). CURT has been a driving force in the formation and sustainment of NCCER (National Center for Construction Education and Research). This organization is discussed in the foregoing as the basis of training provided by the GCA Trades Academy.

Recommendation #3: Encourage the military to require certification of workers in each of the trades. All contractors would then be required to provide Workforce Development in their organizations, thus removing the competitive disincentive.

Comments are welcome: [email protected]

materials will be imported from CONUS where there may be competi-tion from an increased volume of construction spending in the domestic market. Meanwhile, the Guam Seaport is being extended to handle a greater volume of throughput and with enhanced efficiency. The labor compo-nent is without doubt the greatest im-ponderable. It is something the Guam Contractors Association has dealt with on behalf of its members for many years. The issue is most severe for the highest skill trades in our industry. GCA has met this challenge in part by launching the GCA Trades Academy in 2006. Since then, over 1,000 trades-men have immersed themselves into the local workforce after attending three or more years of NCCER training courses at the Trades Academy. In addition, The GCA and the GCA Trades Academy signed an MOU with Guam Community College in 2007 enhancing the relationship between these three organizations; leading to improvement in training availabilities for the construction industry.

Although Guam is in a unique position in regard workforce development, we are not alone in facing the challenge of a declining skilled workforce – this is also being dealt with by contractors in the continental United States. It is useful to understand the depth of the issue and to know what others are doing about it.

Our industry is in the midst of a skilled workforce crisis, according to a White Paper prepared for NCCER by Don Whyte and Steve Greene. For more than twenty years, the construction and pipeline industry has recognized the emerging and growing shortages of skilled craftworkers but broad industry-wide support needed to solve the problem has not been obtained. Every year, FMI, the nation’s leader in consulting and investment banking services for the construction industry,

In the 2005-2006 report, Hoyt Lowder, Senior Vice President stated, “If you haven’t heard the words, you will: labor shortage. It’s not just a craftworker shortage, but a shortfall of qualified managers and leaders.” He goes on to say “Labor shortages of craft, supervisory and management are the primary issues in all sectors, segments and markets.” As an industry, we must recognize this critical workforce crisis and come together to solve it. These shortages affect our entire industry, including suppliers, manufacturers, owners, operators, and contractors.

In December 2004, economic think tank, The Brookings Institute, released a study titled Toward a New Metropolis: The Opportunity to Rebuild America. The study noted that “Residential and commercial development in the next 25 years will eclipse anything seen in previous generations,” and that “Nearly half of what will be the built in our environ-ment by 2030 doesn’t exist yet.” Our industry is facing staggering growth while simultaneously wrestling with significant workforce challenges. The construction industry used to take pride in a tradition of craftsmanship. Today, while many of our craft professionals still hold this pride, the industry no longer instills this pride in young people searching for career opportunities. Our image suffers, and not just outside our industry. Sons used to follow fathers into trades, yet today parents discourage their sons or daughters from pursuing career opportunities in the industry because of their perception of us. In addition, according to the 2002 Jobs Rated Almanac, construction jobs still score low on the jobs list with carpenter (228), boilermaker (235), welder (238), roofer (242), construction worker (244), ironworker (247) and others all ranking in the bottom 50 occupations.

The construction industry first recog-

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Military, Government and Labor Relations Committee Update – February 2014

By John M. Robertson

The Budget Bill for FY 2014is Signed into Law
















above, the NCCER is well financed and professionally managed. Students can turn their goals into reality by following NCCER’s structured career path.

When the GCA launched the Trades Academy in 2006, NCCER curricula and accreditation was the natural choice. Based on research conducted from here in Guam, there has never been a program comparable to the NCCER. Training programs developed by trade unions were specific to one trade and in most cases to a particular region.

NCCER’s curriculum, the Contren Learning Series is developed by Sub-ject Matter Experts (SMEs) represent-ing not only craft work experience, but various companies, regions, schools, training academies and trade associa-tions. Diverse industry needs are incorporated into a single curriculum so that it is applicable anywhere in the nation. Contren’s structure is modular, and the modules are clustered into levels for each craft. The modular format gives students the flexibility to study in a variety of training venues and gives the instructors the flexibility to teach the curriculum in the order that best fits their needs. Before stu-dents receive credit for Contren train-ing, they must satisfy both written and performance evaluation components for each module. Each level of Contren meets apprenticeship standards as set by Department of Labor’s Office of Apprenticeship Training, Employment, and Labor Services. The curriculum also sets or aligns to national skill stan-dards.

The GCA Trades Academy is fortunate in having Dr Bert Johnston as Educa-tion Director. He is passionate about education and especially adult educa-tion for individuals that have chosen a career in industry. We have a facility that is equipped and suitable for class-room and shop training. Dr Johnston has been successful in attaining grants through the Guam Community College for obtaining specialized shop tools and computer simulators for training in various fields. Training is ongoing for both construction tradecraft as well as

Organizations like the NPRA (National Petroleum and Refiners Association) have helped focus the industry on this critical issue by providing forums for discussion and by formulating solutions. Associations like Associated Builders and Contractors and Associ-ated General Contractors, along with their progressive contractor members have helped the industry make strides in attracting and training new and experienced workers. Despite these efforts, the issue is far from solved and has even intensified in recent years. According to the Department of Labor’s Bureau of Labor Statistics (BLS), less than 10% of the 7 million workers currently in the construction industry participate in a formal appren-ticeship program; down from five years ago.

Despite the fact that the construction industry is expected to rank among the economy’s top 10 largest sources of employment growth and is ranked the fifth largest source of job growth (following education and health services; professional and business services; leisure and hospitality; and retail), it is estimated that we will lose 1.4 million workers over the same period due to attrition, promotion, relocation to other industries, and retirement.

According to a Construction Industry Institute research study conducted in 2000, Attracting and Maintaining a Skilled Construction Work Force, craft workers believe their fellow workers leave the industry because of pay, lack of permanent employment, poor safety, poor treatment, and poor working conditions. This impression results in fewer young people wanting to enter our industry, which is a prime contributor to our current workforce crisis. Additional factors include wage rate perceptions and/ or realities, desire for less mobility, increased licensing mandates and, most importantly, relatively low participation in formal training across the industry. The cyclical nature of the construction economy has also contributed to the situation. The industry has historically survived the ups and downs of the national economy, but over the last 25 years, the industry’s ability to retain

during the recessions and its ability to rehire them afterward has declined. During the recent economic downturn that affected the industrial market, many skilled workers left the industry. As the industrial market continues its recovery, our inability to bring back the lost workers will increase the craft shortages. According to a source at FMI, “People in the construction indus-try are either unaware of the impact of the situation or bury their heads in the sand to not deal with it.”

The challenges make our mission clear. We must invest in the develop-ment of our workforce. Twenty years have passed since the Business Roundtable (BRT) published the Con-struction Industry Cost Effectiveness Project outlining the problems with training in open shop construction. Since then, contractors like Austin Industrial, BE&K, Bechtel, Fluor Corporation, Halliburton, KBR, Sundt Corporation, The Industrial Company -TIC, and Zachry have come together to create the National Center for Construction Education and Research (NCCER). In 1995, representatives from leading construction companies, national trade associations, manufac-turers, and academia came together to establish a quality standard for training and certification in various sectors of the construction industry. Business and organizations usually in competition with one another forged partnerships for the common goals of investment in training craft workers, safety of all construction craftpeople, improvement of the industry’s image, and a means of career advancement. Their efforts resulted in the establish-ment of a nonprofit education founda-tion, NCCER, which is headquartered in Gainesville, FL and affiliated with the University of Florida’s Rinker School of Building Construction. As a result of this effort, the industry now has consistent guidelines for delivering training, the finest industry-driven curriculum in the world, uniform quality competency testing, and portable, industry-recognized credentials. NCCER was created specifically to address the workforce shortage facing our industry and to build awareness of rewarding construction career opportunities. Thanks to the Business


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Guam Build UpGradually ComingGuam Build UpGradually Coming

Its been conservatively estimated that close to a half a billion dollars of federal funds will be given to construct military facility projects on Guam over the next five years, in preparation for the first marine units to arrive on Guam by 2020, that's according the Department of Defense. With all these projects coming down the pike, it will keep Guam's construction industry on island busy during this sluggish economy.

It was called the Pacific Realignment, the Pacific Pivot and the Guam Build up and back in 2006 it was predicted that by this time the island would be in the middle of a construction boom. But due to the National Defense Authorization Act of 2012, that is where the pause for the build up began. But now the National Defense Authorization Act (NDAA) of 2014 appears to have Guam gearing up for some needed projects on the other side of the fence along with much needed infrastructure needs for the island.

The Pacific Pivot talks about the potential movement of troops from Okinawa Japan to Guam, Hawaii and Australia. In addition to the marines, the branch of service that has been frequently mentioned about relocat-ing here, there are also discussions of other branches of service like the army and air force to also send more troops here.

The NDAA of 2012 put the breaks on the first buildup on Guam. During that time congress said no more spending would proceed with the Guam build up and the military realignment in the Pacific. According to the 2012 NDAA, before congress could begin to appropriate any money from either the Government of Japan or U.S. military construction money, five conditions had to have been met. So far two of them those have been met, the first was the Commandant of the Marine provides congress with preferred force lay down in the Pacific and second is DOD competes and delivers an independent study of US Force posture in the Pacific.

According to the Director Guam Military Buildup Mark G. Calvo, the Marine Corps Air Station Futenma in Okinawa was a major domino that

had to fall before the Guam build up move could occur.

Calvo said, "That was eventually removed from the proposed 2012 NDAA. Discussions changed from removing the facility completely from the island, but instead to of relocate the facility away from the center of Okinawa, a very populated area, to a rural remote part of the island. The people from Okinawa don't want to replace the facility with another location on their island, they want the U.S. troops out all together. But the Japanese government along with the United States feel that the base needs to stay on the island because its a key position for fighting units in that region and it deters Chinese aggression."

As of now, DOD will not provide a master plan because that plan would imply definite action, a plan without action isn't really a plan, so DOD's take is that they can not provide that to congress until there is an environ-mental Impact study. And as for now it would be unrealistic for the people

of Guam that this will happen soon. This will only happen when the record of decision is completed. Right now that is expected to take place in April 2015, approximately 17 months from now.

In the meantime, DOD needs to deliver a coordinated federal agency plan to address non military infra-structure and utilities requirement on Guam. This translates into a federal plan to address impact and cost to Guam as the result of the move, outside the fence.

"Currently the move of 5,000 marines was noted to impact our hospital operations. The U.S. Federal Health and Human Services Agency needs to address that. Also taken in consider-ation is Guam's mental health facili-ties for war combat veterans in the marine corps which could affect people outside the fence. DOD may build additional capacities for our mental health facilities," said Calvo.

The marines are expected to remain inside the military's footprint and be

5,000 troops

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FEATURE STORY

stationed at NCS. That being said, the U.S. Environmental Protection Agency has concerns with how those 5000 marines and their dependents would affect Guam's Northern Water Wastewater Treatment Plant. Accord-ing to Calvo, GovGuam Utility agen-cies are working closely with DOD to figure it out.

Although the 2014 NDAA budgeted close to $800 million in military projects, there are conditions that have to be met before it can be spent. Funds have been appropriated for $11.8 cultural repository. For a project of this magnitude and the amount of construction happening, its required by the National Historic Preservation Act, that DOD has to fund the ability to collect artifacts that are dug up and to be positioned in the repository for categorizing for museum placement. This acknowl-edges that they anticipate that there's a significant amount of artifacts underground that will be dug from all this construction activity and the artifacts need an immediate place to be stored for a future museum. The $11.8 million is not to be used toward a museum, its the preface to items getting into a museum.

Additional funds have been set aside for a $13 million Center for Disease Control Level ll Laboratory. The lab is an acknowledgement of an expected migration activity will happen on Guam during this time. The lab had to be identified here before a potential disease was go to either Hawaii or to the continental U.S.

The U.S. Environmental Protection Agency also felt that Guam's north-ern treatment facility would need upgrades to handle the additional 5000 marines and their 1,300 depen-dents. Close to $107 million of funds will be used for water wastewater infrastructure

With the 9,000 troops leaving Okinawa, 5,000 plus there depen-dents will come to Guam. Two-thirds of the force will be rotational, rotat-ing every 180 days. The remaining 4,000 marines will be sent to Hawaii and Australia. The cost estimate on Guam's end will be $8.6 billion dollars, $3.1 billion will come from the Japanese Government and $5.5 billion will be from U.S. funding.

Calvo adds, "With the troops coming, as mentioned in the 2012 NDAA, the 3rd Marine Expeditionary Brigade headquarters, the 4th Marine Regiment and elements of aviation, ground and support units from lll Marine Expeditionary Force (MEF). Plans for the location of Marine Air Combat Elements will be at Andersen Air Force Base. There will be no additional procurement of land because the marines will stay with in the fence. The Live Fire Training Range Complex (LFTRC) which is used for pistols to 50 caliber machine guns is suggested to be built in the North-west Field in northern Guam."

There's real evidence that the buildup will move along and the evidence comes from congress that allocates money from the 2014 NDAA. The NDAA authorizes $494.6 million in military construction funds (MILCON) for Guam including $85.6 million for a USMC aircraft hanger at North Ramp on Andersen AFB. The NDAA also authorizes the use of $176 million for facilities at AAFB to support the Pacific Airpower Resil-iency (PAR) program. In addition to $128 million for a fuel systems hangar at AAFB that was originally cut from the previous year's defense bill.

The 2014 NDAA also allows for an additional $114 million to come from the Japanese Government for plan-ning and design of future projects.

In the 2014 NDAA the navy expects to get $318,4 million, $85.6 will be for their Aircraft Maintenance Hangar - North Ramp, $61.7 million for the BAMS Forward Operational Mainte-nance Hangar, $17.1 million for the dehumidified Supply Storage Facility, $35.8 million for the emergent repair facility Expansion, $63.3 for the modular storage magazines, 1.1 for the Sierra Wharf Improvements and $53.4 for the X-Ray Wharf Improve-ments.

Andersen Air Force Base will get $176.2 million for construction projects; $20 million will be for the PAR Fuel Sys Hardened Buildings, $10.5 for the PAR strike tactical Missile Mxs Facility, $132.6 million for the PAR tanker GP Mx Hangar AMU Squad Operations, $8.5 million for PRTC Red Horse Airfield Operations Facility and $4.6 million for the PRTC

SF Fire Rescue and Emergency Management.

All of these projects can be bid on by local contractors as soon as the Joint Region announces the projects are ready to be competed on. Some contractors are leaning forward in preparing the pricing in anticipation of winning the bid. This is positive because that will be additional money coming into Guam's economy.

Guam International Airport

In addition to the Guam build up, the Guam International Airport will also be changing. The agency will build a new $54 million International Arrivals Corridor with Building Seismic Upgrades. This would be a third level glass exterior corridor, similar to the one at the Tokyo Airport. This will allow passengers arriving on Guam to skip entering the concourse, they will be using a corridor outside and then they will come down from the third level, near gates nine and ten, using a newly built escalator and go straight into customs.

The concourse will then be opened up, for outbound passengers only. The existing corridor on the second level will be removed, opening up everything and allow better efficiency to maximize all the gates. Currently the existing corridor prevents the airport from using all the gates, because there are flights arriving and departing, which ends up using the same area. This new third level corridor will make a better customer experience for traveling passengers who are either arriving or departing Guam.

According to Guam International Airport Authority Executive Manager Charles “Chuck” Ada ll, Another new project slated to begin will be to expand the holding bag screening location.

Ada said, "The airport will relocate the bag screening machines to the back to allow more room for the customers. In the past, after you checked in, you would need to bring the bags you were checking in to the designated Transportation Security Administration (TSA) screening area, now this system will have TSA exam-ine the bags in the back, which could decrease the passenger lines. This


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project will also upgrade the screen-ing system to make it more efficient and to allow more counter space for airlines to rent. This CIP is valued at $26 million."

The TSA Security Screening Check-point is the area you go through before you enter the concourse. The airport has plans to expand that area to the right and move the airport police office to another location. This will increase passenger flow and provide better customer service.

Ada believes the quicker they can get travelers to the concourse, the airport can generate more revenue because the passengers may want to buy a drink, food or shop for a last minute gifts. He anticipates in having increased revenue from a lot of those CIP’s.

The airport also intends on replacing the current Flight Information Display system (FIDS). This is the computer system used to display all flight information to passengers about

arriving, and departing flights and the location where you can retrieve your luggage. The price tag on this replacement is $5 million.

Other items in this master upgrade is Integrated PLB Replacement ($8,200,000). Common Use Check-In Facilities ($2,800,000), Fuel System Improvements ($1,000,000), Parking Expansion ($7,400,000), ARFF Facility Replacement ($11,600,000), Cargo Apron Relocation ($7,700,000), Replace Terminal Seating ($3,500,000), Access Control and Security Improvements ($4,000,000), Terminal Flooring Replacement ($2,700,000), Upgrade Airport IT and FMS ($2,000,000), Route 10A Land-scape Component ($1,700,000), Enclose Arrival Tunnels ($1,200,000), Replace Conveyance Systems ($2,600,000), Strengthen and Expand Curbside Canopies ($2,800,000), 1% Arts Program ($639,000) and Unen-cumbered Proceeds ($16,271,067).

Current ongoing projects include the extension of runway 06L/24R, demo-

lition of naval housing units and the former Guam Police Department records building, rehabilitate runway 06L/24R, install instrumental approach aid, noise mitigation measure for residences, improve utilities for sewer and stormwater design and environmental study, and improve airport utility infrastructure (electrical).

Also on the airport concourse, Lotte is making improvements to a duty-free retail area at the GIAA which is estimated to cost $12.7 million. Part of the agreement is to renovate the retail areas along with renovations and upgrades to the restrooms on the concourse.

Between the all the upcoming military projects slated to start in the near future and continue for the next five years, along with the ongoing improvements at the Guam interna-tional airport, Guam's construction industry appears to be cranking up for that long awaited construction boom.


FEATURE STORY

GCA Luncheon

January 15, 2014Westin Resort & Spa

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OAKLAND (Jan. 30, 2014) - Coffman Engineers, a mid-sized, multidiscipline engineering firm, is proud to announce the opening of its newest office, located in the San Francisco Bay Area, California.

The new San Francisco Bay Area office comes during an exciting time of growth for Coffman Engi-neers, as they continue to strategically increase their presence on the West Coast and throughout the Pacific Rim. The office allows Coffman Engineers to provide current clients with locally based engi-neering services while expanding their client base in the Bay Area and Northern California markets. The new location signifies Coffman Engineers’ seventh office and second location in California.

“We are excited about opening our doors in the San Francisco Bay Area to better support our local clients and to further expand our reach into Northern California. We look forward to becoming a part of the Bay Area community and fostering relationships for the long term,” said Dave Coffman, founder and chief executive officer of Coffman Engineers.

The new office is the result of a union with Jeffrey Weber & Associates, Inc. (JWA), a well-established structural engineering firm based in the Bay Area. Jeff Weber, the founder and owner of JWA, will serve as the general manager for the new Coffman office. His employees from JWA will serve as the initial Coffman Engineers’ staff in the new office.

For 35 years, Coffman Engineers has provided clients with civil, structural, industrial mechanical, process piping, commercial mechanical, electrical engineering and controls, lighting, project man-agement, commissioning, and corrosion control engineering. The company serves as prime and sub-consultant on large, small, and diverse projects. Coffman Engineers’ office locations include Anchor-age, Alaska; Hagatna, Guam; Honolulu, Hawaii; San Francisco Bay Area and Los Angeles, Califor-nia; and Seattle and Spokane, Washington. Follow us on Twitter @CoffmanEngineer.

###

1939 Harrison Street, Ste. 215, Oakland, CA 94612

Skip Bourgeois, Corporate MarketingFor Coffman Engineers(907) 360-9838

FOR IMMEDIATE RELEASE

CONTACT:


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The U.S. Small Business Administration (SBA) has advised GET, LLC that it is now Certified in the Historically Underutilized Business Zone (HUBZone) Program. The news comes after GET, LLC completed the extensive certification process that began back in August of 2013.

"GET, LLC is excited to be a part of the HUBZone Program," said GET, LLC Managing Partner Tricia J.S. Gumataotao. "We join 181 companies in Guam who are participating in this program and proud of the fact that we are the 75th Women Owned Business in Guam to take this important step to further grow our business."

The Historically Underutilized Business Zones (HUBZone) program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in histori-cally underutilized business zones - "HUBZones" - through the establishment of preferences. SBA's HUBZone program is in line with the efforts of both the Obama Administration and U.S. Congress to promote economic development and employment growth in distressed areas by provid-ing access to more federal contracting opportunities.

"The program’s benefits for HUBZone-certified companies like GET, LLC include competitive and sole source contracting, a 10% price evaluation preference in full and open contract competitions, and other subcontracting opportunities," said Gumataotao.

GET, LLC serves both federal and local government agencies and commercial businesses of Guam and the Western Pacific in business-to-business consulting services and construction materials and equipment sales.

GET,LLCHUBZone Certified

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When it comes to a business’s property and employees, safety is always the main concern. How can one protect my

employees and my property? This question has no doubt been raised

several times especially with the recent stint of break ins and

robberies.

I got the chance to speak with Clarence Heath; Divisional Director of G4S about ways business owners can protect their property and employees. One of the first ways that he spoke of to prevent any kind of theft is to: 1. Invest: Invest into more lighting and locks and fixtures for your business. Thieves and vandals will be less

likely to burglarize or vandalize areas that

are well lit where they can be easily identified.

2. “Think like a thief”: The

way that one could do this is to walk around the

property, staying vigilant of any “weak points” on the property,

such as rusted and weak locks on doors, windows and storage units as

well as poorly lit areas and make note of it to address it as soon as possible.

3. Security System: Install a security system for your business, or hire a security guard to consistently patrol the premises especially while the business is closed. Clarence Heath commented that many business owners like to cut corners and minimize spending on security for their business. This method isn’t the greatest of choices. Most business owners that cut this corner neglect the possibility that property that becomes damaged or stolen due to vandalism and theft often exceed the money “saved” from minimizing security costs. 4. Background Check: Businesses should take the time to thoroughly check each person that applies before they are hired. This comment is derived from the fact that a previous employee or a disgruntled worker commits a considerable amount of property theft and vandalism. Criminals are getting “smarter”. In relation to how these criminals are getting “smarter”, Clarence Heath stated that the criminals are getting smarter but it shouldn’t be ignored that these criminals are just better informed. Disgruntled employees or employees with a history of theft are able to assess the value of items and merchandise of their place of employ-ment. So, Human Resource managers and supervisors should take heed of whom they hire. 5. Identity Theft: The last piece of advice for business owners on the subject of safety, which many overlook, is identity theft. If a thief or vandal were to actually break in to your business establishment, all your employees’ personal information, includ-ing your own could be at risk. Mr. Heath advises that business owner should look into document storage to better protect your employees and your own personal information such as home addresses, credit information and work schedules.

All of these tidbits of advice should be followed; however, it is not necessarily full proof. These should be taken as preventa-tive measures that can better decrease the chances that a business owner could experience loss or damage to their property or merchandise.

ProtectYour Business

By: Nick Cruz

Phone 671.646.4861/5 • www.blackconstructionguam.com

WINNING AWARDS IS GOOD.WINNING YOUR CONFIDENCE IS EVEN BETTER.

We were honored to be the recipients of 1st and 2nd place overall in the recent Guam Contractors Association Excellence in Construction Awards. But the long-term goal and basic philosophy of Black Construction is and always will be serving our clients, helping them grow, enhancing their visibility. Just in case you’re wondering, the overall 1st place award was for our Kosrae State Correctional Facility. The overall 2nd place award was for Phase l, Camacho Landmark Center-Personal Finance Center Building, shown here. We also received seven other individual category awards. Check our website for details.

A TutorPerini Company C O R P O R A T I O N

Dallas, Texas-based Markets and Markets issued a report recently that the global solid state and other energy efficient lighting systems market is expected to grow from $28,248.7 million in 2010 to $53,469.5 million in 2015-reflecting an estimated Compound Annual Growth Rate of 9.7% in the five year period. The market research company and consulting firm noted in their report titled "Solid State and Other Energy Efficient Lighting Systems, Application and Market Trends (2010-2015)" that the increasing demand for energy-saving and environment-friendly lighting technology is driving the growth of the global solid state and other energy efficient lighting systems market. Of note, compact fluorescent lamps command the largest share in terms of revenues in the respective market segment, while light emitting diodes (LED) is the second largest market due to what Markets and Markets attributes to the globally increasing demand for energy efficient lighting. LED lighting has also gained much more attention due to a shift of the focus of governments’ worldwide towards protection of the planet from global warming. While

LED lighting contributed about 31.2% to the global solid state and other energy efficient lighting systems market revenues in 2010, the organic light emitting diode market is expected to grow to 44% by 2015.

GET, LLC was encouraged by the news that the U.S offers the most lucrative of markets for solid state and energy efficient lighting manufacturers as it is to grow 10.7% by next year. The Asia Pacific region-where this writer is currently sitting-is the largest market in the world and has 44.7% share of the global market revenues. Europe comes second in revenues.

Markets and Markets says that industry par-ticipants with the most significant product developments include Philips, Osram, Gen-eral Electric, Nichia, Cree and Samsung and that major players also differ from one technology to other. The report says that Philips, Osram, and General Electric are the largest players in CFL market. However, in light emitting diode market, Nichia, Osram, Lumileds, Cree, and Samsung are the largest players. There are other lighting manufacturers whose products are on the rise in use in buildings across the globe-let's

keep a close eye on them to as they will certainly bring value to the marketplaces where they are in. To learn more about the lighting products that GET, LLC provides, including the LED lines of our partners, Independence LED Lighting and Deco Lighting Inc., please check out our website at www.get-guam.com or call us to discuss solutions for your important lighting needs-All Made in America!!!

By: Shawn Gumataotao

Market in 2015$53 Billion

Energy Efficient Lighting

Market in 2015$53 Billion

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Ted Garrison; president of Garrison Associates, is a catalyst for change. As a consultant, author and speaker; delivers his Construction 3.0 Strategies that offer breakthrough solutions for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances and marketing. Contact Ted at 800-861-0874 or [email protected]. Further information can be found at www.TedGarrison.com."

Clemson professor Dennis Bausman reported in an NCS Radio interview that contractors with a strategic plan were 35 percent more profitable than those with-out one. Despite that fact, he found that 25 percent of contractors doing more than $50 million in volume a year did not have a strategic plan. (To listen to the entire interview go to http://ow.ly/t5MUO.)

Just as important as having a strategic plan is having the right one. Unfortunately, contractors’ poor strategic planning has contributed to an industry that has consis-tently underperformed financially. For ex-ample, in 2007 the Construction Financial Management Association reported that the average after-tax profit margin for contractors was 1.8 percent compared to 5.5 percent for other industries. In 2006 Ken Simonson, AGC’s chief economist, reported that 40 percent of contractors didn’t make a profit and that the construc-tion industry had the second highest fail-ure and bankruptcy rates of all industries. These two years are significant because they were in the midst of a construction boom.

Based on the evidence, too many contrac-tors don’t have a good strategic plan. The result is they end up fighting over price. Sun Tzu wrote in the Art of War, “Those skilled in war subdue the enemy’s army without fighting. Their aim must be to take all under heaven intact through strategic superiority.” So if you are forced to compete on price, then it might be a safe assumption you don’t have a superior strategy.

For contractors to create a superior strategy that allows them to compete profitably in the today’s hypercompetitive construction industry, they must learn how to outthink their competitors instead of attempting to outmuscle them in a price war. Contractors must understand that to reach their financial potential, they must compete on value instead of price re-gardless of the delivery method. Of course there are more opportunities to compete on value in a negotiated environment, but even in the design-bid-build arena, contractors can learn how to outthink their competitors to compete on value.

Design-bid-build contractors must develop a strategy that allows them to deliver a product at a lower cost, not simply a lower price. When contractors can lower their costs, they are able to lower their prices

without lowering their profit margins. Unfortunately too many contractors merely lower the price without lowering the cost to win the bid. This strategy has resulted in declining profit margins for the entire industry. However, contractors that develop a superior strategy are able to make profit margins above the industry average and sometimes even significantly above the average.

The question then becomes, How does a contractor create a superior strategy? It requires strategic thinking because other-wise our strategic plans tend to be a retread of an early plan. Think of the old saw regarding the definition of insanity: “Doing the same thing over and over and expecting different results.” In the book Strategic Thinking, I defined strategic thinking as follows:

“Strategic thinking is an intensified explo-ration of strategy from new directions that create new concepts. It’s a thinking process, an exploration process, and a discovery process.”

Strategic thinking is not just used to develop a company’s strategic plan. It also enables contractor to better plan their projects and solve problems. A mechani-cal contractor who used strategic thinking to revise its business plan was able to increase its profit margin by 4 percent. An electrical contractor used it to improve its project planning, and that resulted in a 30 percent reduction in labor costs. How can you afford not to improve your strategic thinking?

However, effective strategic thinking offers much more:

• It enables everyone in the company to not only understand the company’s current strategy but also to buy into it.• It makes the company more flexible and responsive to the rapidly changing market conditions.• It helps to inspire people to take initia-tive and respond in an empowered manner.• It creates an environment where it’s easier to hold on to key people after investing time and money in their devel-opment.• It helps develop your future leaders, so they will be available when you need them.

However, for a strategic thinking initiative

to consistently produce outstanding results, a system is required. In my book Strategic Thinking, I explore a five-step system that when followed can produce outstanding results:

1. Get the right people involved. Jim Collins refers to this as getting the right people on the bus in the right seats.2. Define the problem. Neglecting to clearly define the problem is the number one reason for project failure and lack of success.3. Develop possible solutions. One should develop as many possible solutions as one can come up with to ensure the best solution is uncovered. A common mistake is to stop searching for solutions as soon as one possible solution is revealed. Of course, if it were that easy, it would already have been solved.4. Identify the right solution. Once all the possible solutions have been identi-fied, then the various ideas can be examined to determine the one with the greatest potential.5. Execute the strategy. If the idea is not put into action, nothing is accom-plished.

If you want to learn how you or your organization can improve your strategic thinking, it is suggested that you read Strategic Thinking by Ted Garrison. The book’s executive summary is available for free, and you may order and download the book at: http://ow.ly/sLi8i.

ImproveYour Strategic Thinking


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They say that coworkers should not date. However, the office is a great place to meet people with similar interests and similar goals. According to a recent Workplace Options survey, nearly 85% of 18-29 year olds would have a romantic relationship with a co-worker, just over 35% for 30-46 year olds and about 30% of 47-66 year olds. In CareerBuilder's 2012 survey, 38 percent of respondents have dated a coworker at least once in their career and one third has ended up in marriage. This same survey showed that while the majority of workers tended to date people in different professions, nearly one in five (19%) reported they are more attracted to people holding similar jobs. So why stay away from office romance? By inference from the CareerBuilder’s survey, 62% of office romances eventually break up. And if the romantic interest is a subordinate, there is a possibility of a claim of sexual harassment against the super-visor by the romantic interest should the relationship end badly.

Another reason to stay away from dating coworkers is it could be damag-ing to a career. A workplace romance

could result in a transfer for one or both individuals,

possibly into less desirable positions or locations. One or both parties,

after a breakup, could find themselves in very uncomfortable situations

that force them to resign from the company. An office romance can also be distracting and parties may concentrate on each other rather than on their responsibili-ties.

matters of the heart, the heart does not always follow the brain. What should employer then do to protect itself from office romance?

1) Employers should have a policy that recognizes office romances but also contains standards for office behaviors. These policies should contain some examples of both appropriate and inappropriate behav-ior in the workplace. Failure to follow the expected office behaviors should result in discipline up to and including termination of employment.

2) The policy should contain a state-ment that will require coworkers to inform their respective supervisors of the romance. Additionally, it should include an acknowledgement that management has the right to transfer one or both parties and make other management decisions when it is necessary or appropriate.

3) Have a “Love Contract”. The love contract has both parties acknowledging that the relationship is consensual, that both parties understand sexual harassment laws, and that both parties are bound by company policy on behavior.

If should also acknowledge that inappropriate behavior is subject to disciplinary action. Should the couple separate and one or both claim harassment or unfair treatment, the love contract provides the company level of protection from claims of ha-rassment. It puts the responsibilities of the romance, or breakup of the relationship, squarely on the backs of the couple, not on the company.

4) Insure that both parties under-stand the definition of sexual harass-ment. There should be training on recognizing behaviors that may be

as harassment. Harassment is illegal when it is so frequent or severe that it creates a hostile or offensive work environment or when it results in an adverse employment decision. Therefore, when a supervisor is dating a subordinate, a perception, whether true or false, of better schedule, better treatment, and/or better pay for the romantic partner, could result in claims of illegal harassment. For example: A position with higher pay and status becomes available. Two subordinates, Employee A and Employee B apply for the promotion. Employee A is in a romantic relationship with the supervisor. Coincidently, Employee A is better qualified for the position and is given the promotion. While Employee B was not forced into a sexual relationship with the supervisor, Employee B may think "I need to sleep with the boss before I can get promoted." The promotion of Employee A may be perceived by Employee B as “adverse employ-ment decision” and therefore may claim harassment.

Romance in the work-place will not disappear

as long as people need com-panionship and need to con-nect with like-minded indi-viduals Rather than a strict policy against romance in the workplace, instead have a policy that recog-nize romance in the workplace will occur and written in a way that defines appropriate workplace behavior.

1. http://www.inc.com/chas-rampenthal/dating-in-the-office-is-it-legal.html 2. http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?

Romance

Grace Donaldson is the General Manager of Pacific Human Resource Services. She may be contacted via email at: [email protected].

IN THE OFFICEIN THE OFFICE

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GCA Construction News Bulletin February 2014

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