THE VOICE OF THE CONSTRUCTION INDUSTRY OF GEORGIA

The Georgia

CONTRACTORVolume 8, Issue 6 November | December 2012

COMPLETESTREETS POLICYSTORY ON page 6

2 The Georgia Contractor

November | December 2012

Letter from the EditorNovember | December 2012

A D V E R T I S E M E N T SA4 Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Cummins Power South . . . . . . . . . . . . . . . . . . . . . . . 23

Engineered Restorations. . . . . . . . . . . . . . . . . . . . . . 17

Georgia Construction Aggregate Association . . . . . . 10

Georgia Power . . . . . . . . . . . . . . . . . Inside Back Cover

Georgia Utilities Protection Center Inc. . . . . . Back Cover

Greater Traffic Company . . . . . . . . . . . . . . . . . . . . . 27

Independent Electrical Contractors . . . . . . . . . . . . . . 17

JAT Consulting Services Inc. . . . . . . . . . . . . . . . . . . . 15

Prime Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . 23

RHD Utility Locating. . . . . . . . . . . . . . . . . . . . . . . . . . 4

RS&H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Silt-Saver Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

United Consulting . . . . . . . . . . . . . . . Inside Front Cover

Wiregrass Georgia Technical College. . . . . . . . . . . . 21

Dear Readers~

012 is coming rapidly to an end. It has not been aparticularly good year for the construction industry.Yes, here and there we hear some sounds ofimprovements, but frankly it is a laboriously diffi-cult time for both transportation and industrial/

commercial construction. One thing is constant, however, andthat is our will to manage in difficult times.

The election is behind us, and we would have liked a moredefinitive direction, but we did not get that—both Houses ofCongress and the White House are divided as ever. What is nextwe do not know, except that the healthcare law will become effec-tive and it will remain as controversial as it has been from thebeginning.

GPTQ has been reorganized, and in October a new charterwas signed by GDOT, The American Council of EngineeringCompanies of Georgia, and the Georgia Highway ContractorsAssociation. It has all of the elements of becoming a successfulworking relationship between all parties concerned: work cooper-atively; provide a forum to facilitate exchange of best field prac-tices; improve products and processes; recognize quality achieve-ment; and improve long-term performance and durability. It is awelcome move to see government and industry work together forthe common good.

The Georgia Contractor will become the Official Publica-tion for the CEFGA/SkillsUSA Careers in Construction Expo inMarch of next year. We are determined to make it the best issueever. Go Build Georgia is now a regular presence, and with our cir-culation reaching many more readers than ever, including cham-bers of commerce, libraries, and the Technical College System ofGeorgia, you will find advertising in The Georgia Contractoreffective and profitable.

This issue contains many interesting articles; we hope youenjoy all and pick up some ideas that might be helpful to yourbusiness.

R. Petersen-FreyEditor-in-Chief v

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4 The Georgia Contractor

www.thegeorgiacontractor.com

Managing EditorR. Petersen-Frey(770) 521-8877

Art DirectorPamela Petersen-Frey(770) 521-8877

The Georgia Contractor is published bi-monthly on a calendar year basis. It is a maga-

zine designed around the construction industry associations and their

members. It is supported by associations and their members. Executive,

editorial, circulation, and advertising offices: 1154 Lower Birmingham Road, Canton,

Georgia 30115 • Phone: (770) 521-8877 • Fax: (770) 521-0406

e-mail: rfrey@a4inc.com. Send address changes to your

association and/or to A4 Inc.

Opinions expressed by the authors are not necessarily those of any of the

associations or publisher nor do they accept responsibility for errors of content

or omission and, as a matter of policy, neither do they endorse products or

advertisements appearing herein. Parts of this magazine may be reproduced with the

written consent of the publisher.

The Georgia ContractorOn The Cover

COMPLETE STREETSComplete Streets is a growing national ini-tiative to improve the design and operationof roadways, particularly those in urbanand suburban settings, to accommodateand encourage safe access for all users—motorists, transit riders, cyclists and pedes-trians.

See the story on page 6

USE A COMPANY YOU CAN TRUSTWITH YOUR TRANSLATION PROJECT,

because a little mistake in another language can have unpleasant results.

A4 INC. (770) 521 8877

“Gort! Klaatu Borada nikto.”

6Complete Streets Policya state of mind

9March 21-22, 2013: 7,000+Georgia Students to Learn aboutCareers in Construction, Design, andEnergy at CareerExpo in Atlanta

11GPTQ Re-Chartered for the Future

12Savannah Harbor Expansion Program a regional project with national impact

15Reaching Out to Georgia’s Veterans

16Go Build Georgia Partners with OtherState Agencies to Reach Veterans

18Construction & Engineering FairCaptures Attention of Hundreds ofStudents

20Fringe Benefits & the Davis Bacon Act

Compliance: Four Must-dos

22Recommendations for Characterizing

RAS

24Lessons Learned: Mechanically Stabi-

lized Earth/Segmental Retaining

Walls

25Contractors Save with Fringe Pay

Pension Plans

26Will Construction in the Peach State

Still Be the Pits?

28Georgia Contractor News

30Mandatory Commissioning for All

Buildings Proposed for Green Build-

ing Standards

The Georgia

Contractor

5November | December 2012

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15

The Georgia Contractor

By Gerald Ross | Chief Engineer & Russell McMurry | Director of Engineering |

Georgia Department of Transportation

Complete Streets Policy

6

hen the Geor-

gia Depart-

ment of Trans-

portation pre-

sented its newly-adopted

Complete Streets Policy at a

conference of bicycling

enthusiasts last month, some

may have viewed it as a sem-

inal moment—a wondrous

epiphany at the former State

Highway Department.

November | December 2012

a stateof mind

W

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8 The Georgia Contractor

For those of us who work at Georgia DOTthough—on the concepts, design, engineer-ing, and implementation of improvementsto the state’s transportation infrastructure—it was more the formalization of a continu-ing evolution in our thinking and our work.A public declaration grounded not in buzz-words or overnight trends, but in the foun-dation of the department’s maturing, inclu-sive philosophy of transportation planning.

Complete Streets is a growing nationalinitiative to improve the design and opera-tion of roadways, particularly those inurban and suburban settings, to accommo-date and encourage safe access for all users –motorists, transit riders, cyclists, and pedes-trians.

We worked with a broad array of localgovernments, our transportation partneragencies, and pedestrian and cycling advo-cacy groups to develop Georgia DOT’s pol-icy —now formalized in some 30 pages ofdefinitions, standards, and guidelines in ourdesign manual.

Complete Streets is more than pages ina manual however. It is confirmation of anever-changing culture; an acknowledge-ment that our transportation system can bemore—should be more—than its least com-mon denominator; a recognition that thestraightest route between two points maynot be everyone’s desired route. CompleteStreets is a state of mind. The GeorgiaDepartment of Transportation is the proudkeeper of a 20,000-mile highway systemconsidered among the nation’s best. But weknow it can be more. More inviting. Moreaccommodating. More holistic. CompleteStreets is the department’s commitment tomake it more, or perhaps better stated, tocontinue making it more.

Many of the goals and precepts ofComplete Streets already are keystones ofexisting Georgia DOT initiatives—ouremphasis on context sensitive designs, ourfinancial underwriting of the Clean AirCampaign and community transit pro-grams, our Scenic Byways, TransportationEnhancement and Safe Routes to Schoolsprograms, our aggressive Bicycle and Pedes-trian Safety Action Plan. And our construc-tion program. In the north Georgia com-munity of Braselton, a department rerout-

ing project was to include a bike lane and asidewalk on either side of the roadway. Butin talking—and listening—to the commu-nity, we learned they preferred multi-usetrails on both sides; we revised our plansand built trails. An $11 million project cur-rently underway on Buford Highway—abusy Atlanta arterial highway with heavylocalized pedestrian traffic—embodies allthat is Complete Streets with sidewalks,pedestrian countdown timers at crosswalks,hybrid pedestrian beacons, and a raised cen-

ter median to serve as a pedestrian refuge. Complete Streets is not an aspiration

for the Georgia DOT; it is the way we goabout our business every day. For the fore-seeable future, that business likely willremain centered around the highway sys-tem. Ten million Georgians depend on it.But it can be a more complete system. Andwe are a different, wiser department now—we no longer see our mission as highwaysalways; rather highways all ways. v

9November | December 2012

he Construction Educa-

tion Foundation of

Georgia (CEFGA) will

hold its 9th annual

CareerExpo March 21-

22, 2013, at the Georgia

International Convention Center (2000

Convention Center Concourse). More

than 7,000 students from across Georgia

will attend the event, the state’s largest

youth workforce development event for the

construction industry.

Students will explore interactive

exhibits that demonstrate the scope of the

industry and learn about specific career

paths by meeting building professionals,

trade association representatives, and edu-

cators from hundreds of organizations

across the state including Holder Construc-

tion Company, Perkins + Will, Georgia

Power, Georgia Tech, Southern Polytech-

nic, the Associated Builders and Contrac-

tors of Georgia, the Associated General

Contractors of Georgia, and many more.

The sights, sounds, and equipment of

a real construction site will make the Expo

an interactive educational experience.

“Our goal is to encourage students to

explore and pursue careers in construction,

design, and energy,” said Scott Shelar, exec-

utive director of the Construction Educa-

tion Foundation of Georgia (CEFGA).

The CareerExpo covers an area the

size of six football fields and is divided into

distinct career pathways, including:

The World of Architecture and EngineeringLearn about smart design and technology,

including Building Information Modeling

(BIM) and how it’s used to design today’s

buildings.

The World of Construction Managementand Green BuildingDiscover how choices in design, material

selection, and construction impact the

environment and operating efficiencies.

March 21-22, 2013: 7,000+ Georgia Students toLearn About Careers in Construction, Design, and

Energy at CareerExpo in AtlantaBy Scott Shelar | Executive Director | CEFGA

T

The World of Energy and IndustrialConstructionUnderstand how the lights actually switch

on. Explore how energy is created, trans-

mitted, and distributed.

The World of Electrical ContractingLearn how electricity flows through a

building and what it takes to install the

infrastructure to make it happen.

The World of Mechanical ContractingLots of water flows in and out of a work-

ing building. Learn what it takes to install

the piping to keep the water flowing.

The World of Utility Contracting andHeavy Equipment OperationsBefore a building is built, the land must be

cleared and a whole network of trenches

and piping put in place. Learn what it takes

and operate the actual equipment used in

this industry.

The World of Tile Contracting and FinishesIt’s the first thing you notice when you

walk into a building. The walls. The floors.

Learn about the precision involved in

applying paint and setting tile in this excit-

ing World.

“Through hands-on activities at the

CareerExpo, students will learn about spe-

cific careers and understand the skills, edu-

cation, and training necessary for employ-

ment in the construction industry,” said

Shelar.

Who Will Attend • More than 7,000 middle, high school,

and college students from across

Georgia.

• Professionals from more than 300

companies.

• Teachers from 180 high school con-

struction training programs and 27

technical colleges.

• Representatives from technical college,

university, and apprenticeship pro-

grams.

SkillsUSAIn conjunction with the CareerExpo,

2,000+ high school and technical college

students from across the state will compete

10 The Georgia Contractor

in more than 100 leadership and skills com-

petitions at the 2013 SkillsUSA State Lead-

ership and Skills Conference.

CareerExpo ParticipantsParticipating Companies and Organiza-

tions: Brasfield & Gorrie, Holder Construc-

tion Co., Perkins + Will, New South Con-

struction Co., PCL Industrial Construction

Co., Pyramid Masonry, ABC of Georgia,

AGC of Georgia, GUCA, Goodman, Inde-

pendent Electrical Contractors, Atlanta

Electrical Contractors Association, Mason-

ry Association of Georgia, American Insti-

tute of Architects, Georgia Power, Georgia

Energy and Industrial Construction Con-

sortium, OSHA, U.S. Green Building

Council Georgia Chapter, Superior Plumb-

ing, Mechanical Contractors Association,

McKenney’s, Technical College System of

Georgia, Southern Polytechnic and Georgia

Tech. More information, including a list of

all 300+ participating companies from last

year’s event, may be accessed online at

www.cefga.org. v

11November | December 2012

In the transportation industry, there is out-

standing opportunity for partnering and

cooperation. Especially in today’s economy,partnering for cost- and time-efficiencies isa demonstration of prudent customer serv-ice and taxpayer stewardship, and a way toencourage streamlining and innovation forquality project delivery.

With that in mind, it is great newsthat the charter for the Georgia Partnershipfor Transportation Quality (GPTQ) wasrecently signed by the Association of Con-sulting Engineering Companies of Georgia(ACEC/G), the Georgia Highway Con-tractors Association (GHCA), and theGeorgia Department of Transportation(Georgia DOT).

Readers familiar with GPTQ activitiesin the early years of this decade may haveassumed that the initiative just went dor-mant, another sign of the tight economy.Rather, as with many things in this day andtime, a change in how we do things was inorder and this applies to GPTQ.

In the early 1990s, Georgia DOTbegan the Georgia Quality Initiative (GQI),a reflection of the National Quality Initia-tive that most state DOTs embraced. Trans-portation-wise, it was a very different day.The focus was on construction quality witha heavy emphasis on constructability issuesand materials. Obviously, focus on theseitems required more focus on preliminaryengineering activities to achieve the bestresults possible in construction phase.There were many opportunities for partner-ing across engineering and constructionphases to produce a better transportationproduct, on-time and on-budget.

By 2004, the GPTQ name came intoeffect as the national effort under FHWAbecame the National Partnership for High-way Quality (NPHQ). Many initiatives andgreat successes were achieved! All the while,Georgia DOT was evolving, includingadapting to declining workforce levels,funding challenges, and re-organized officesand functions. For example, the newlyformed Division of Engineering includes

the offices of Road Design, Bridge Design,and Design Policy and Support, and morerecently, the department added the officesof Innovative Program Delivery and Officeof Program Delivery.

There are some new faces, but thecommon goals of the three GPTQ charter-ing entities have remained constant onbehalf of the traveling public. Even withoutthe traditional GPTQ Workshop held eachDecember that showcased the results ofyear-long task force activities, formal andinformal deliberations have continued andyielded many new practices and proceduresthat make our respective and collective rolesin transportation project delivery easier andbetter. By the end of the decade, NPHQwas sunset by FHWA and a year later,GPTQ was sunset.

In October 2012, GPTQ was reorgan-ized under a new charter with an officialcharter-signing ceremony held at GeorgiaDOT. Our goals are to: • Work cooperatively to deliver the trans-portation program efficiently with afocus on quality.

• Provide a forum to facilitate theexchange of best in field practices.

• Continuously improve GDOT’s prod-ucts, processes, and projects.

• Recognize and showcase qualityachievement by the Partnership andtheir members.

• Improve long-term performance anddurability of Georgia’s transportationsystem.

One of the most fundamental and criticalelements of the GPTQ effort over the yearshas been communication. There has beenmuch hard work through committees andsub-committees, and without effectivecommunication, we wouldn’t have beensuccessful. I’ve been involved in GPTQactivities for several years, and I like tothink that the three groups communicatebetter and differently than we did back inthe 1990s.

Today, we are certainly more accessibleto each other—only an e-mail, text, tweet,or call away; organizationally, a lot more‘horizontal’ than ever before; and the needto collaborate is a driving force. As wemove forward, communication will bemore critical than ever. All parties are inagreement to work efficiently, keep lines ofcommunication open, to focus on the criti-cal areas, and make effective use of all of ourlimited resources.

I look forward to ACEC/G, GHCA,and Georgia DOT continuing to build onthe foundation of partnership throughGPTQ. v

GPTQ Re-Chartered for the FutureBy Russell McMurray | Director, Division of Engineering | Georgia DOT

12 The Georgia Contractor

Savannah HarborExpansion Program

By Pamela Little, PE | EcoWise Civil Design & Consulting Inc.

a regional project with national impact

n October 26, the Assistant Secretary of theArmy (Civil Works) Jo-Ellen Darcy signedthe long-awaited Record of Decision for theSavannah Harbor Expansion Project(SHEP) to proceed from the evaluationphase into the construction phase. More

than 12 years have passed since the US Army Corps of Engineers(USACE) began its official studies into deepening the SavannahHarbor to accommodate the larger Post-Panamax ships expected tobring cargo to the United States following the Panama Canalexpansion.

In August 2012, the Corps issued the final Chief of EngineersReport on the project with a recommendation to dredge the har-bor to a 47-foot depth adding five feet to the current 42-footdepth. The report was released just one month after PresidentObama named the project to the We Can’t Wait initiative for expe-diting infrastructure projects expected to have exceptional region-al and national benefits.

The importance of the SHEP to the regional and nationaleconomies was emphasized at the October 30, 2012, State of thePorts Luncheon hosted by the Georgia Chamber of Commerce,where Governor Nathan Deal called the Port of Savannah, “an eco-nomic driver for the state of Georgia.” A delegation of individualsfrom Georgia, including Gov. Deal and Atlanta Mayor KasimReed, has been working to ensure federal funding will be availablefor the project. Geographical and political boundaries have beenput aside to ensure the success of the expansion and to help it moveforward.

The total cost of the project has been estimated at $652 mil-lion. The cost will be shared between the federal government andthe non-federal sponsor, the Georgia Department of Transportation

(GDOT). A Project Partnership Agreement (PPA) will be draftedto define the terms and responsibilities of the Corps and GDOT.The PPA and an authorization from Congress for the budgeted costof the project are the final two steps in a long, involved process toauthorize the expansion.

Congress conditionally authorized the SHEP in 1999 with the‘unique’ requirement that the Corps consult with the Secretary ofthe Interior, the Secretary of Commerce and the Administrator ofEPA and gain their approval on the selected improvement plan aswell as the associated mitigation plan before entering the construc-tion phase. This is the only Corps deepening project to require suchan approval.

If the project is fully funded by Congress each year per the rec-ommendations in the project plan, it is expected to be complete bythe end of 2017. It is expected to take only four years to build theproject that was conceptualized in the late 1990s.

Over its 50-year lifecycle, the expansion is expected to reduceshipping costs by $174 million per year for US companies; thereby

lowering costs for imported goods purchased byconsumers. This project has a 5.5:1 benefit-to-costratio, meaning that for every $1 spent on the proj-ect, the country is expected to earn a return of$5.50. Positive effects from the project are expectedas far west as Dallas and as far north as Illinois.USACE Savannah District Commander and Dis-trict Engineer, Col. Jeffrey Hall, said the project, “…will create jobs and improve the nation’s waterwaysas well as our nation’s global competitiveness.”By increasing the depth of the harbor just five

feet, the port will be able to accommodate over 78percent more cargo per shipment. Today, thelargest shipments the harbor receives are approxi-mately 4,600 twenty-foot equivalent containers(TEUs). Once the project is complete, it is expect-ed to be able to receive up to 8,200 TEUs on a sin-gle carrier. With so many economic benefits expected from

the project, it may be surprising that approval forthe project took so long. When asked, Col. Hallindicated that the study period was appropriate for

this particular project and was necessary to find the right balancebetween economic benefit and environmental impacts. He addedthat in the future, similar feasibility studies could be reduced bynarrowing the scope of the project from the beginning and apply-ing SMART— Specific, Measurable, Attainable, Risk Informed,and Timely - criteria to the project goals.

The extensive study period and paperwork generated for theproject influenced a new goal to reduce Corps studies to a maxi-mum of three years and $3 million. When lined up side-by-side ona conference room table, the study documents, including sixty-four(64) engineering studies conducted on the SHEP, take up twelvefeet in length. These studies also took over a decade and over $46million to complete.

O

13November | December 2012

14 The Georgia Contractor

The results of such extensive studiesare impressive. Just less than half of thebudget for the project will be spent to eval-uate, monitor, and mitigate environmentalimpacts. The feasibility studies alsoinvolved consultation with other agencies

such as the Georgia Ports Authority (GPA)and GDOT to determine, what, if any,improvements were on their schedules toaddress growth whether the harbor wasdeepened or not. As a result of the feasibil-ity studies, USACE Savannah District,

Chief of the Planning Division, Bill Baileyindicated, “We don’t believe the harbordeepening will cause any additional land-side improvements to be needed.”

As for the approximately $306 millionto be spent on mitigation and evaluation,the following are all included in the projectscope: construction of a new fish bypassaround New Savannah Bluff Lock and Damin Augusta; acquisition and preservation of2,245 acres of wetlands; installation of anoxygen injection system to compensate forpotentially lower levels of dissolved oxygenin the water; construction of a raw waterstorage impoundment for the city of Savan-nah’s industrial and domestic water treat-ment facilities; recovery, documentation,and curate of the Civil War ironclad CSSGeorgia; as well as environmental monitor-ing beginning prior to construction andending ten years after construction to deter-mine the extent of effects from the project.

The extensive studies provide both theCorps and the public with a high degree ofconfidence in the findings to manage theimpacts and find solutions for the chal-lenges. The actual deepening will be accom-plished through a combination of hopperdredging and cutter-head dredging meth-ods, with dredge material deposition inboth EPA-approved ocean-dredged materialdisposal sites and existing and approvedland-side confined disposal facilities.

The SHEP is expected to provide greatbenefits to the nation and to the states ofGeorgia and South Carolina. The Port ofSavannah, including Garden City Terminaland Ocean Terminal, serves up to 44 per-cent of the US population. Access forexportation of goods grown or made in theSoutheast is expected to improve and bene-fit the regional economy. A study has shownthat the state’s deepwater ports already sup-port 352,146 jobs throughout Georgia. Ontop of these benefits, the port already bringsin $1.4 billion in state taxes and $4.5 bil-lion in federal taxes. As imports and exportsincrease, these numbers are expected tocontinue to grow. v

15November | December 2012

As the granddaughter of a Korean War Vet-

eran, I appreciate the sacrifice and commit-ment our troops give forth as they fight forour country. Saluting our nation’s heroes forthe sacrifice that they and their families gothrough to preserve our nation’s freedom isthe responsibility of Americans.

In the Governor’s Office of WorkforceDevelopment, we honor our troops bygranting them priority in Georgia’s work-force system. Although the federal govern-ment requires veterans to receive prioritythrough federal workforce programs, theState Workforce Investment Board hasdeemed them a priority for Georgia as well.

“To further ensure that Georgiaremains one of the most veteran-friendlystates in the country, the State WorkforceInvestment Board established the policythat the highest priority for WIA serviceswill be given to eligible veterans and eligiblespouses of veterans.”

Of the hundreds of Georgia companiesour office meets with, they all consistently

want employees with a strong work ethic andfundamental life skills. This training is a wayof life for American vets regardless whichbranch of service they hail. Veterans possessstrong leadership and teamwork skills, as wellas the discipline to finish a day’s work withquality and precision.

Through Go Build Georgia, GOWD isworking tirelessly to recruit men and womeninto the skilled trades. The men and womenwho are returning from Afghanistan andIraq are the most qualified candidates toimmediately place in the 16,500 openingswe have coming available in the next year.

To make transitioning back into civil-ian life as seamless as possible, GOWDlaunched the Operation: Workforce portal,on November 8. This portal is designed tobe a gateway into veteran’s jobs programsand services. This portal is linking Georgiacompanies directly with our heroes seekingemployment. This has essentially created anonline one-stop shop for Veterans seekingemployment.

Among Governor Deal’s charge toencourage veteran’s employment, he imple-mented the Hire a Georgia Veteran Cam-paign. This campaign presents a call toaction for Georgia employers to focus on

enhanced hiring opportunities for veterans,guardsmen, and reservists. The pledge com-mitment also encourages increased priorityfor interview opportunities.

Georgia is fortunate to have leadershipacross the state that understands the impor-tance of taking care of our Veterans. It’s tru-ly encouraging to see state agencies workingtogether to make a smooth transition backinto the civilian lifestyle and workforce apossibility for Georgia’s veterans.v

REACHING OUT to Georgia’s VeteransBy Tricia Pridemore | Executive Director of the Governor’s Office of Workforce Development

TriciaPridemore

16 The Georgia Contractor

n November 8, the Gover-nor’s Office of WorkforceDevelopment and theGeorgia Department ofLabor hosted a GeorgiaJobs for Veterans Break-fast and Career Expo at

the Georgia World Congress Center. The breakfast included employers and

elected officials from all across the stateready to extend a hand to the veterans inneed. The audience heard from GovernorNathan Deal, Lt. Governor Casey Cagle,Executive Director Tricia Pridemore, Com-missioner Mark Butler, and other state lead-ers on the importance of employing thosewho have served our state in service.

The expo included employers meet andgreet sessions with the job seekers to givethe employers a chance to review the veter-an’s resumes and applications. Employersalso had the option to conduct on-the-spotinterviews with job seekers they saw fit tofill their open positions. The expo includedan isolated area for these interviews to takeplace. A computer lab was available for anyveteran to prepare and edit their resumebefore speaking with an employer. Also,GDOL provided workshops throughoutthe event such as ‘How to Use Social Mediain Your Job Search,’ ‘Interviewing Tips andStrategies,’ and ‘Resume Preparation.’

According to the Department of Vet-erans Affairs, 773,337 veterans calledGeorgia home in 2011. As of September2012, 39,000 of those 773,337 are classi-fied in the working age group which is ages18-64 and are currently unemployed. Fur-thermore, there are an expected 80,000Veterans to enter Georgia’s workforce inthe next few years.

With these statistics, GOWD knew itwas time to take action. The State Work-force Investment Board voted to grant vet-

erans priority of service in Georgia’s work-force system. Essentially this means thatveterans and their spouses will receive thefirst priority for Workforce Investment Act(WIA) services if they are eligible.

Georgia has been one of four statesselected to participate in a pilot programwith US Department of Labor and theDepartment of the Army to develop anational model for reemployment strategiesfor veterans and UCX claimants. This mul-ti-agency effort will help to bridge employ-ment gaps in Georgia and uncover waysthat we can better share data with the mili-tary and key stakeholders to get veteransmore quickly into the workforce.

Problems veterans face while transi-tioning back into civilian life include, butare not limited to: skills translation, nega-tive stereotypes, and acclimation to the tra-

ditional work environment. Georgia ishome to strong leaders who are committedto putting our veterans back to work so theycan support their families.

Agencies such as Department of Veter-ans Service, Georgia Department of Labor,and many more provide transition servicesfor our returning vets.

The next charge that Governor Dealand the Governor’s Office of WorkforceDevelopment have implemented is the Hirea Georgia Veteran campaign. The state hasasked that Georgia employers take a pledgeto enhance hiring opportunities for veter-ans, guardsmen, and reservists. The pledgeasks companies to give veteran’s applyingfor open positions the courtesy of an inter-view or follow up. Essentially, if companiesare looking for dedicated workers, giveGeorgia’s heroes a chance.

Go Build Georgia Partners with OtherState Agencies to Reach Veterans

By The Go Build TeamO

17November | December 2012

Employment is not only crucial for aveteran to be able to support his or her fam-ily, but is important for their overall well-ness. These men and women have servedour country, now they are back and need tosupport their families. Meaningful employ-ment will give these men and women achance to plant their feet back on Americansoil and continue to strive for success.

With the jobs available through GoBuild Georgia, these veterans are the perfectcandidates. The program is not onlyfocused on our high school students learn-ing the value of these careers, but all unem-ployed Georgians to move the needle on thestate’s jobless rate.

The final piece of GOWD’s mission toemploy Georgia’s heroes is the Operation:Workforce web portal. This portal will hostthe employer pledge, a geographical listingof veteran-friendly employers, and a mili-tary crosswalk that converts military occu-pations to civilian occupations. This portalwill provide an easily assessable location forveterans to seek employment resources.

Coming to the aid of veterans is where thestate of Georgia must step up. It is a call to

action: if an employer has jobs availablethese are great, qualified candidates. v

18 The Georgia Contractor

Construction &Engineering Fair

students compete to complete the DOT bridge build

How do you get a middle school or high school student interested in a career they neverconsidered before? Give them the chance to actually try it! Wiregrass Georgia TechnicalCollege, along with the Workforce Alliance Group of the Associated General Contractorsof Georgia Inc. (AGC Georgia,) held the first of many events to do just that. On October4, the college hosted the 2012 Careers in Construction and Engineering Fair on theirValdosta Campus for middle and high school students from several South Georgia counties.Similar events have been held in North Georgia and in the Albany area, but this was thefirst of its kind in the greater Valdosta area.

capturesattention ofhundreds ofstudents

he event was designed toattract the attention ofworkers and leaders ofthe future. The con-struction and engineer-ing industries are fore-casting the need for

thousands of new employees in the next fewyears. One reason for this is the currentaging workforce, and the fact that many ofthese have already or will be retiring soon.While the economy slowed down the indus-try for several years, that is changing, andthese industries are seeing a fast recovery.The college and more than 15 local andstate construction related vendors hoped tocreate an environment to attract the atten-tion of hundreds of future potentialemployees.

The fair was a half day event that fea-tured many types of activities all showcasingdifferent types of careers in the constructionor engineering fields. Approximately 360middle school and high school studentsfrom Brooks, Ben Hill, Berrien, Cook,Echols, Irwin, and Lowndes counties, alongwith several area home school students, par-ticipated in the day’s activities that includeda lot of hands-on participation. As the stu-dents arrived, they were ushered into anauditorium to receive instructions on theflow of activities, and an overview of theprograms Wiregrass Georgia Technical Col-lege offers in the construction and engineer-ing fields. After that, they moved outside tobegin exploring.

One of the first activities the studentsencountered was a demonstration by Geor-gia Auto Sprinklers. They watched as a firebroke out in a contained space causing thesprinkler system to activate along with somespecial effect sounds that kept the studentson their toes.

The small fire raised the temperatureto 150 degrees which caused a bulb, set as afusible link, to break and allow the dis-charge of water. The students wereenthralled with the process that caused thesprinklers to work. After that, the studentsspread out and worked through all types ofinteractive activities from vendors repre-senting all aspects of the construction andengineering industry.

The Department of Transportationprovided the DOT Bridge Build whereteams of four competed for the best time intaking apart and rebuilding a replica of abridge.

The competitive spirit of the studentssoon made this one of the most popularactivities as they raced to get the best time.At the end of the day, the school team thathad the best time was awarded $500 worthof equipment to be used in their school’sconstruction related program. A team offour young men from Brooks County HighSchool made up the winning team.

Another exciting activity involvedheavy machinery. United Rentals of Valdos-ta provided two types of lift equipment,including a Sky Jack. Students who sawworkers on top of this type of equipmentthought it looked like fun, but soon learnedthat there was a lot more to its operationthan meets the eye. Working with a UnitedRental employee, they guided the machin-ery up and across part of the parking lot.Yancey Brothers Company, a Caterpillardealer, provided a 2012 Caterpillar 140M2Motor Grader that soon became a hit notonly with the students but several teachersas well.

Habitat for Humanity conducted ashed building event on site. Studentsgrabbed their hard hats and helped put upwalls, lay subfloors, and work on the roof.Wiregrass Georgia Technical College elec-trical students completed the wiring on theshed that was ultimately donated to theWiregrass Georgia Technical College Foun-dation South.

The shed will be auctioned off at a lat-er date to help raise funds to provide moreevents like the Careers in Construction andEngineering Fair.

Home Depot provided students thechance to get a little messy, with paint. Stu-dents used their creativity to try out differ-ent types of paint on a wall. In the end, sev-eral were able to take home their creations. Wiregrass drafting, electrical systems,industrial systems, air conditioning systems,and welding programs also provided activi-ties in their classrooms that showed stu-dents how exciting and rewarding careers inthose fields could be.

Georgia Power tested the students’strength while also demonstrating the dif-ference between the regular light bulbs andthe CFL bulbs. Students hand cranked agenerator to provide power to light thebulbs. The demonstration provided a phys-ical example of the amount of energy usedfor the old version of light bulbs comparedto the new CLF bulbs. Harris Surveyingcaught the interest of many by showing offland survey maps of the local area and dis-cussing careers in the field.

The fair was designed to show studentsthe many types of careers available in theindustry and also educational paths one cantake to achieve those careers. SouthernPolytechnic State University showed stu-dents the educational tracks they could takebeginning in high school, moving into pro-grams at Wiregrass Georgia Technical Col-lege, and then completing their four yeardegree or higher at Southern Poly under anarticulation agreement providing a seamlesseducation opportunity.

At the end of the event, students wereexcited about the career possibilities avail-able, and the vendors left with high hopesfor the future of their industry and the tal-ent that will soon be heading their way.Wiregrass Georgia Technical College is atwo year technical college offering programsin air conditioning technology, industrialsystems technology, electrical systems tech-nology, welding and joining technology,mechanical and architectural drafting,machine tool technology, and a new con-struction management associate degree.Wiregrass also offers a true two plus twoarticulation agreement with Southern Poly-technic State University in the areas ofmechanical and electrical engineering. Thisagreement allows students to transfer up to62 academic credit hours taken at Wiregrassto Southern Polytechnic towards complet-ing a bachelor degree.

To find out more visitwww.wiregrass.edu. v

19November | December 2012

T

20 The Georgia Contractor

ne of the trickiest areas ofcompliance with theDavis-Bacon Act arefringe benefits, whichwhen administered cor-

rectly can save a lot of money, or cost you alot if you get it wrong. From what can beincluded, to when to pay, how to pay, not tomention, how much to pay are all land-mines, or gold-mines, if done properly.Let’s assume you are signed up with a regis-tered apprenticeship program with the USDept. of Labor (or state apprenticeshipcouncil) like the one IEC Atlanta/Georgiaoperates. With that in mind, let’s review fourstrategies to assure you are in compliance.1) First and foremost ~ READ YOUR

CONTRACT. As we all know, the‘Contract is King!’ You must also readthe apprenticeship program standards,which may specify the amount offringe benefits to be paid apprenticeswhile in the registered program. If thestandards are silent, then the fullamount published in the contractmust be paid. On the other hand, ifthe contract is silent on this issue, thenit is permissible to pay apprenticeswhatever the program apprenticeshipstandards specify. If both the stan-dards and the contract specifies the afringe amount, or some other percent-age, then the contract would overrulethe apprenticeship program standards.This is critical! Read the contract andthe standards carefully! (For moreinformation on this go tohttp://www.doleta.gov/OA/bul06/Bulletin_2006-05A_Fringe-Benefits.pdf )

2) Know your current fringe amount inhourly rate format. If a contract spec-ifies $8.67/hour be paid in fringe, thendon’t automatically pay that out! Cal-culate each of the fringe amounts youpay into an hourly rate and thendeduct that from the specified rate.

Fringe Benefits & the Davis Bacon Act Compliance: Four Must-dos

By Niel Dawson | Executive Director | IEC Association

Example: if you pay 50 percent of thehealth insurance premium at$200/mth, then the annual amountwould be 200 x 12, or $2,400. Con-vert this to an hourly rate (2,400 /2,080 work hours per year) =$1.15/hour. Continue with all yourbenefits, total and deduct this from the$8.67 to determine what additional (ifany) you are required to pay. Nowthat you know how to calculate afringe as an hourly amount, what canbe included?

3) Know What Can Be Included inFringe. Bottom line, anything thatyou choose to provide for an employeecan normally be included in the calcu-lation of the fringe.

Those items you cannot include are: taxes,workers comp, unemployment, and anyother state or local mandated taxes, fees orregulated costs required under law. Thereare a few that can go either way dependingupon how you treat them. For example, ifyou pay for the cost of the apprenticeshipprogram or other schooling, this can be

included as long as it is not contingentupon a passing grade. A fringe can onlybe included if it is given without acontingency. Other items that canbe included are life insurance andpension plans that you pay for.Finally, don’t forget to includeany paid time off such as vaca-tion, holiday or sick time.

4) Contributions to a Retire-ment Type Account. This maybe the trickiest, but extremelyadvantageous and should beadministered by a qualified brokeror fringe benefits group that spe-cializes in DB work. Instead of set-ting up a retirement plan, you canalways just add the additional fringeamount to the hourly rate, but doingthis will automatically cost you theadditional taxes (FICA, SUTA, Comp,Unemployment, etc…) in addition tothe rate, which on average can be fivepercent!

Then, there’s overtime, which must be paidat time and a half on the hourly rate, whichwill cost an additional 50 percent of thefringe, plus taxes. Payments to the retire-ment account must be made at least quar-terly, and if invested wisely during the quar-ter, can also make you some money! Next,by contributing into an employee’s retire-ment plan, it allows owners and keyemployees to contribute more for their ownretirement due to strict IRS rules.

There are more advantages, but arebeyond the scope of this article—contact aspecialist to set one up for you. But pleasedon’t ignore this tip if you are going to becompetitive in your bids.

As a disclaimer, I highly recommend you haveyour fringe benefits calculations reviewed by aspecialist or attorney, as there are ever-chang-ing regulations in this arena. v

http://www.wiregrass.edu

he use of recycled asphaltshingles (RAS) in asphaltmixes is on the rise. Arecent survey conductedby NAPA showed that

RAS use increased by more than 50 percentfrom 2009 to 2010. Nationwide, 1.1 mil-lion tons of RAS were recycled into asphaltmixes in 2010, conserving more than200,000 tons of virgin asphalt binder.Based on a composite of average 2010asphalt price indices published by 11 stateDOTs, this translates into savings ofapproximately $100 million. While reduc-ing material costs for asphalt mixes is adriving factor in the use of RAS, it alsomakes sense environmentally. In additionto conserving raw materials, using RAS inasphalt paving mixes resolves waste dispos-al issues and reduces the amount of shin-gles dumped in landfills.

RAS contains asphalt binder, organicfibers or fiberglass, mineral aggregate, andmineral filler. RAS is available from twodistinct sources: manufacturing waste(MW) and post-consumer (PC) waste. PCor tear-off shingles are removed fromhouses or buildings during reroofing andtypically contain higher asphalt contentsdue to weathering of the surface granules.Exposure to the sun over time also oxi-dizes the asphalt binder, producing a stiff-ening effect. The asphalt binder present inMW shingles has been aged due to the air-blown production process but is less stiffthan PC RAS binder.

Many state agencies limit the amountof RAS in asphalt mixes—typically fivepercent or less by weight of the aggregate.Other states are beginning to movetoward specifications that limit the per-centage of recycled binder. In either case,successful RAS mixes depend on correctprocessing and handling of the RAS mate-rial. Mixes containing RAS must also beproperly designed in order to be costeffective and to ensure good mix perform-ance. An integral part of mix design ischaracterizing the RAS components.

22 The Georgia Contractor

Processing and Handling RASShingles must be processed, or ground,before being used in asphalt paving mixes.Deleterious materials such as nails, wood,and other debris should be removed priorto grinding. These contaminants are moreoften present in PC than MW shingles.However, the grinding process is typicallyeasier for PC shingles, since the asphalt hasbeen further aged and is more brittle thanin MW shingles. As heat accumulates dur-ing grinding, the asphalt in MW shinglesbecomes more plastic, making it difficult toachieve a uniformly ground product.

The current specification (AASHTOMP 15-09 Use of Reclaimed Asphalt Shin-gles as an Additive in Hot-Mix Asphalt)states that RAS should be ground such that100 percent passes the 12.5-mm (½-inch)sieve. However, many contractors havefound it beneficial to heave a finer grind ofRAS, such as a 3/8-inch top size. A finergrind ensures maximum economic benefitby increasing the amount of usable asphaltand also improves mat placement and qual-ity. RAS particles should be ground to auniform size to facilitate good blendingduring production.

MW and PC shingles should be stock-piled separately since the characteristics ofeach are very different. Other stockpile con-cerns include the following:• Adequate drainage of stockpiles isimperative, because water is often addedduring the grinding process. Also con-sider covering RAS stockpiles to preventprecipitation from increasing the mois-ture content. Higher moisture contentsmean higher temperatures during plantruns because the moisture must be driedout of the RAS before the binder can beheated sufficiently.

• Prevent agglomeration of the shingleparticles while stockpiled. This can beaccomplished by blending RAS with anacceptable fine aggregate source or withRAP (at a ratio of 75/25 or 80/20 per-cent, with RAS being the lower percent-age). When blending RAS with othermaterials, it is imperative that the blendbe consistent throughout the stockpile.Otherwise, the variations in the stock-pile will lead to variations in the pro-duced asphalt mix.

If binder properties are being assessed, lab-

Recommendations for Characterizing RAS

23November | December 2012

oratory samples of RAS material should bedried with a fan. Otherwise, RAS samplesmay be oven dried at 110°C; however, thismethod may further stiffen RAS binder.

RAS AsphaltRAS binders are stiffer and have differentrheological properties than virgin or modi-fied binders since they are air-blown duringshingle production. PC RAS binder is alsostiffer than MW due to further aging onroofs.

Asphalt ContentThe current standard for RAS mix designs(AASHTO PP 53-09 Design Considera-tions When Using Reclaimed Asphalt Shin-gles in New Hot-Mix Asphalt) require thatthe asphalt content of RAS samples bedetermined using chemical extractionmethods. However, both agencies and con-tractors desire to minimize the use of sol-vent extractions due to the hazardous chem-icals involved.

The ignition oven method (AASHTOT 308) is a popular alternative for deter-mining the asphalt content of recycledasphalt pavement (RAP), but some organi-zations are reluctant to use this methodwith RAS. In addition to burning offasphalt, the excessive heat of the ignitionoven can cause aggregate breakdown or the

ignition of other RAS material components.Thus, a material-specific asphalt correctionfactor must be determined in order toaccount for this material loss. Developingan asphalt correction factor for RAS is diffi-cult, however, due to the uncertain compo-sition of RAS.

In the absence of an appropriate igni-tion oven correction factor, chemical extrac-tion should be used to determine RASasphalt content. With same-source RAS,comparisons should be made between theasphalt contents determined by chemicalextraction and ignition oven to determinetheir relative closeness. v

24 The Georgia Contractor

echanically StabilizedEarth (MSE) is simplysoil that is internallyreinforced. For thebetter part of human

existence, cultures around the world haveconstructed ‘reinforced’ earth systems.Materials such as branches and straw havebeen used in the construction of crude mudand brick structures and roadways. Archae-ological discoveries in Asia have identifiedthe use of wood sticks to reinforce earthenembankments for at least 1,000 years. Interms of using mechanically stabilized orreinforced earth from an ‘engineering’ per-spective, history traces its use to 16th centu-ry France.

History of MSE Engineering and Con-struction ~ The modern science of MSE inretaining wall applications is also credited tothe French, having first been used in com-mercial applications in the 1960’s. Afternearly a decade of use in Europe, the firstmechanically stabilized earth retaining wall(MSEW) in the United States was construct-ed in 1971 for a California roadway project.

The majority of the MSEW projects inthe United States through the mid-1980swere transportation related. Thereafter,MSE use expanded tremendously to solvetopographic challenges in commercial landdevelopment. Owners have always had theneed to create more useable acreage, but thearea of land and quantity of earth needed tocreate conventional earth slopes becameincreasingly costly. MSE systems allowowners the opportunity to increase availablebuildable land areas using flexible, durable,and cost effective earth retention systems.

Advantages of MSE Systems ~ Whenmost of us think of MSE, we think of Seg-mental Retaining Walls (SRWs). SRWswere developed in the 1980s and gainedwide acceptance in commercial applicationsbecause of their many advantages. SRWsprovide designers with the flexibility to cre-ate ‘buildable’ land in areas otherwise pre-

senting development challenges. SRWs areaesthetically appealing using dry stackedmasonry blocks that come in many shapesand finishes.

Typical soil reinforcement consists ofpolymer geosynthetics commonly known asgeogrids. SRWs are relatively flexible andcan accommodate some movement with-out collapse, particularly during earth-quakes. SRWs are erected using drystacked construction techniques thatfacilitate relatively easy and rapid instal-lation. SRWs utilize soil materials, oftenfrom onsite sources, as part of the wall sys-tem which is a less expensive alternative toconcrete and steel. Because the SRW unitsare made solely of aggregate and cementi-tious materials, they are very durable andenvironmentally friendly. Typical SRW pro-duction can range from about 400 squarefeet per day to about 1,000 square feet perday depending upon manpower and equip-ment resources.

Segmental Retaining Walls vs. Rein-forced Soil Slopes ~ Another applicationof MSE to accommodate site developmentand increase available buildable landincludes reinforced steepened soil slopes(RSSs). RSS are distinguished from SRWsas their inclination is shallower than 70degrees, whereas SRWs are considered forall inclinations greater than 70 degrees.RSS may utilize various facing options buttypically have either a wrapped or formedface that can be vegetated. SRW heights inthe United States are now approaching 100feet, while RSS construction is nearing 300vertical feet.

MSE Design Considerations ~ Regardlessof the MSE alternative selected for a project,thorough evaluation and integrated designapproach is essential to the satisfactory long-term performance of the MSE system.When it comes to the design of MSE sys-tems, careful coordination by the MSEdesigner with the members of the designteam, particularly the civil and geotechnical

engineers, is essential to a successful project. The phrase too often seen in land

development documents is ‘Wall by Others’without concern for design and con-structability challenges.

The design of MSE systems is notmutually exclusive of other design disci-plines and must be fully integrated betweenapplicable consultants. Lack of coordina-tion and lack of continuity of design con-sultants throughout the design and con-struction process has resulted in perform-ance problems on some MSE projects.Such problems can be avoided by placingthe same emphasis on MSE design as isplaced on building structures. During thepast three decades many advances have beenmade to establish consistent and reliableMSE design practice.

The Federal Highway Administration(FHWA) and National Concrete MasonryAssociation (NCMA) have championedbest practices approaches for the design andconstruction of MSE systems.

MSE Cost Considerations: Lastly, andperhaps the driving force in the use of andtechnological advances of MSE and SRWconstruction is their overall economic valuewhen compared to conventional earthretaining structures such as cast-in-placeconcrete walls. Cost advantages rangingfrom 25 to 60 percent can be realized whencompared to cast-in-place concrete or otherstructural wall systems. v

Mechanically Stabilized Earth/Segmental Retaining WallsObservations & Lessons from the School of Experience By ECS Corporate Services LLC.

November | December 2012 25

ontractors are always look-ing for an edge to win abid. For federal jobs, therequired fringe benefit paycan cost big bucks in taxes,

unemployment, and payroll fees. Butdiverting fringe pay into a DOL-approved,bona fide benefit and pension plan can giveemployees real benefits, while making thatmoney tax-exempt!

The ARRA (American Recovery &Reinvestment Act) has made more con-struction jobs available during these hardeconomic times; however, the result isunusually high numbers of contractors bid-ding for these jobs. At the same time, stateand federal agencies have intensified com-pliance efforts, increasing the likelihood ofundergoing an audit when working anARRA job.

Contractors tend to pay the fringe ben-efits as additional cash wages, believing it’sthe easiest way to comply with the law(Davis Bacon Act). However, allocating thismoney to a bona fide benefit plan, such as aPension or Health and Welfare Trust, canresult in significant cost savings.

When the fringe portion of the prevail-ing wage is used to pay for hourly workers’benefits, this amount is not subject to pay-roll costs (labor burden) including FICA,federal and state unemployment taxes,Workers Compensation, and General Lia-bility insurance. Although there can be vari-ances in certain rates, this labor burden typ-ically represents an additional cost to thecontractor of 25-35 percent on each dollarpaid as cash wages.

The key to keeping that 25-35 percentin the bank is the use of an approved andcompliant plan, where the contractor is notserving as trustee or fiduciary, and wherethe plan complies with all prevailing wagelaws and regulations. Here is an example ofhow it can work.

Sample CalculationAssume the Acme Construction Co. has 15employees doing prevailing wage work.

These employees work approximately 1,000hours per person, per year. The fringe ben-efit amount above the base rate is $8/hour,and the labor burden (FICA, Unemploy-ment taxes, Workers Comp, and GeneralLiability) is 25 percent when paying fringedollars as cash wages, saving the contractor

between eight-ten percent on total projectlabor costs!

The number of bids submitted forpublic works projects has increased dramat-ically, which means greater competition fornew jobs. The number of contractors regis-tered with the Central Contractor Registry(U.S. Federal Government database), hasgrown significantly in the past two years.Anecdotally, we have heard that the numberof contractors bidding on state and localgovernment jobs is two to three times theamount seen a year ago. If your competitorsare using a bona fide benefit plan—andyou’re not—you’re at a disadvantage.

Traditional benefit plan providers oftenstruggle with prevailing wage benefits dueto the seasonal nature of construction work.A company like BENECO that specializesin this industry can easily ‘turn off ’ contri-butions to the plan when the job finishes,and resume them when the next prevailingwage job starts. BENECO also offers aunique ‘hour banking’ program, whichenables benefits to continue uninterruptedfor hourly workers during slow times or lay-offs, and at no cost to the employer. Inaddition, benefits are tracked on an hourlybasis, specially designed for contractors’convenience, to make payroll and reportingsimplified.

Traditional plan providers can onlyoffer benefits with premiums on a monthlybasis, forcing contractors to manually calcu-late and adjust premiums themselves. Plus,

BENECO supports clients during audits atno additional cost, and will work to bringthem back into compliance.

Having a business partner that special-izes in prevailing wage projects is an easyand very cost effective way to bid morecompetitively on new federal job opportu-

nities, and ease concerns about uninten-tionally falling out of compliance. Using afirm that understands federal and state reg-ulations, is familiar with recordkeepingrequirements, and offers a full complementof benefits to allocate the full fringe amountcan give contractors the advantage neededto compete in an increasingly crowded bid-ding environment.

About the AuthorJ. Zane Smith is a founding Partner and Sr.Vice President of BENECO with offices inSan Antonio, Texas, and Scottsdale, Ari-zona. Since 1989, Zane has worked closelywith various state and federal departmentsof labor regarding the procedures and regu-lations involving contractor’s ability to savelabor burden costs and bid more competi-tively using the proprietary systems thatBENECO has developed as a Departmentof Labor and IRS approved plan; compliantwith the Davis Bacon Act of 1931 (C.F.R.29), Service Contract Act, all state prevail-ing wage laws, and ERISA.

He speaks regularly to trade associa-tions and conducts seminars concerningthese issues and how they relate to contrac-tors. With more than 2,000 contractorsusing the BENECO plan in over 40 states,BENECO is the nationwide leader in theconstruction industry relating to contrac-tors who perform on projects involvingmunicipal, state, and federal prevailingwages. zsmith@beneco.com v

Contractors Save with Fringe Pay Pension PlansBy J. Zane Smith Sr. | Vice President/Founding Partner | BENECO

15 employees X 1,000 hours = 15,000 Total Hours

15,000 hours X $8.00 (Fringe) = $120,000 in Fringe Benefit Pay

$120,000 X 25% (Labor Burden) = $30,000 Acme Construction Co. Savings

26 The Georgia Contractor

Construction activity inGeorgia has now tumbledfor nearly six years in arow. Will the industryfinally achieve an upturn

in 2013?Nationally, both construction spend-

ing and employment bottomed out in ear-ly 2011. The upturn since then has beenfragile and fragmentary, but both figuresseem to have moved definitively higher.

Specifically, construction spendingclimbed 12 percent from its low point inJanuary 2011 through August 2012. As ofSeptember, employment was also up froma February 2011 low, but only by one per-cent. Nevertheless, most indicators suggestconstruction spending will continue to risein 2013, which virtually dictates anincrease in construction employment inthe coming months.

In contrast, Georgia has yet to experi-ence any turnaround. Constructionemployment in the state topped out at224,000, seasonally adjusted, in March2007, nearly a year after the national peak.(Seasonal adjustment is a statistical tech-nique to remove normal weather- and hol-iday-related variations to allow valid com-parisons of different months.) By Septem-ber 2012, employment in Georgia had fall-en 38 percent to 138,700—a far steeperdrop than the 29 percent decline thatoccurred nationwide between April 2006and February 2011. Totals for the thirdquarter of 2012 were the lowest since early1994.

In the last year alone, from September2011 to September 2012, another 4,400construction jobs disappeared in Georgia.That 3.1 percent decline placed Georgia34th out of 50 states plus the District ofColumbia in the rate of constructionemployment growth over that period.

There has been a small pickup inbuilding construction employment—employees of homebuilders and nonresi-dential building general contractors.

Employment in this subcategory rose threepercent, not seasonally adjusted, from Sep-tember 2011 to September 2012. (TheBureau of Labor Statistics, which postsemployment data, does not seasonallyadjust industry subcategories; such datacan be meaningfully compared only for thesame month in different years, not acrossmonths.) Nevertheless, the September2012 total of 33,000 is down by more thana third from the high of 50,400 set sixyears before.

Employment among heavy and civilengineering contractors slipped anothertwo percent in the last 12 months, to21,100 in September 2012. That was 40percent lower than in the peak September,in 2006.

Specialty trade contractors, the largestconstruction subcategory, also have shedworkers for six consecutive years. Employ-ment fell 37 percent from September 2006until September 2012. The latest count,86,800, was six percent less than a yearearlier.

The story is similar in all three metroareas for which BLS posts data: not season-ally adjusted construction employment inSeptember maxed out in 2006 and has fall-

en by a cumulative 37 percent in theAtlanta-Sandy Springs-Marietta metro area,29 percent in the Augusta-Richmond coun-ty area (which includes two counties inSouth Carolina) and 43 percent in theSavannah area.

The only bright spot has been in theChattanooga metro area, which lies largely inTennessee but also includes Catoosa, Dade,and Walker counties in Georgia. Construc-tion employment there rose by 1,300 jobs inthe past 12 months, or 15 percent—the thirdstrongest increase of any metro area. Even inthe Chattanooga area, however, constructionemployment was 1,600 jobs or 14 percentbelow the crest in September 2006. (For allof these metros except Atlanta, BLS com-bines mining and logging with constructionto avoid disclosing data about industries withfew employers.)

As for construction spending, there areno government figures by state. But ReedConstruction Data, which collects data onproject starts, reported on October 30 thatthe value of all starts in the first three quar-ters of 2012 was up 35 percent from thesame period in 2011. Residential starts shotup 60 percent, nonresidential buildingstarts rose 34 percent, and civil engineeringstarts increased five percent. Such a largeincrement in starts should translate intomore jobs in 2013.

Will ’13 bring better luck to Georgiacontractors? Based on recent national trendsand surveys, there is some reason for opti-mism. But improvement will be far fromuniversal.

Total construction spending climbed amodest 6.5 percent from August 2011 toAugust 2012, the Census Bureau reportedon October 1. Private residential spendingwas up 18 percent, propelled by a 45 per-cent leap in multifamily construction, 21percent growth in single-family, and an 11percent gain in improvements (additionsand major renovations to existing housesand apartments). Private nonresidential

Will Construction in the Peach State Still Be the Pits?By Ken Simonson | Chief Economist | AGC of America

Ken Simonson

spending grew 7.2 percent but has cooled inrecent months. Public construction, whichhas been tapering off since the beginning of2011, fell 3.5 percent over the latest 12months.

Georgia has had some of the worst res-idential problems—nearly vacant condobuildings, large-scale foreclosures and delin-quencies on single-family houses, and thehighest rate of bank failures of any state.But there are signs that 2013 may be better.House prices on homes financed by FreddieMac or Fannie Mae in Georgia climbed 4.0percent from the second quarter of 2011 tothe second quarter of 2012, according tothe Federal Housing Finance Agency. Thatwas a full point better than the national rateof appreciation and 14th-best out of 50states plus D.C. In the Atlanta-SandySprings-Marietta metro area, appreciationreached 6.3 percent.

The major drivers for private nonresi-dential construction have been power andenergy projects, which rose 12 percent;manufacturing, up six percent; and twosmaller components: lodging, with a 34 per-cent rebound, and education (mainly privatecolleges and universities), up 22 percent.

Nationally, the power and energy mar-ket has been—and will continue to be—boosted by oil and gas drilling in shale andother formations. In Georgia, which doesnot have good drilling prospects, the ‘shalegale’ will nevertheless add to employmentthrough demand for new natural gas-firedpower plants to replace increasing uneco-nomic coal-fired plants. Meanwhile, ongo-ing construction at the Vogtle nuclear plantsite should help lift power constructionactivity in 2013.

Georgia has attracted a significantshare of manufacturing in recent years andshould continue to do so. In a survey of cor-porate economists released on October 29by the National Association for BusinessEconomics, 27 percent of the 44 respon-dents said they expect their firms willincrease spending on structures in the next12 months, vs. ten percent who expect adecrease. Industrial Information Resourcesreported on October 26, “Looking ahead toplanned expenditures for 2013, we see the

[industrial manufacturing] industry poisedto begin the year with a solid base of projectactivity, but much will depend on factorsnot yet in play, most significantly how theNovember elections turn out.” The firmdefines industrial manufacturing as durableand nondurable goods manufacturing, plus“infrastructures (i.e. port facilities, light railtransit, and distribution warehouses).”

One driver of construction in 2012and 2013 is the expansion of the PanamaCanal. Savannah, like other east and gulfcoast ports, will be investing heavily toattract ‘post-Panamax’ ships that can carry15,000 containers—nearly four times thenumber that can squeeze through thecanal’s current locks. To be ready requiresdredging, extension of piers and wharves,much larger storage and marshalling yards,improved road and rail connections, andmore warehouse capacity both around theport and inland.

The outlook for office and retail con-struction remains less promising. Total pri-vate sector employment nationally has risenby four million from its low point but is stillmore than four million below the pre-reces-sion high, meaning there is still a lot ofvacant office space. Even companies that areexpanding are leasing an average of 30 per-cent less space per employee than in 2007,according to one national commercial real-estate firm. That means there is likely to berelatively more spending on office renova-tions and less on new office construction in2013. Similarly, retailers are fitting intosmaller spaces abandoned by competitors,rather than building new big-box stores orshopping centers.

Public construction still has a bleakoutlook, both nationally and in Georgia.Georgia benefited from federal spending onmilitary bases such as Fort Benning, follow-ing the recommendations of the BaseRealignment and Closure, or BRAC, Com-mission of 2005. However, most of thatspending, as well as projects funded by the‘stimulus legislation’—the 2009 RecoveryAct—wrapped up in 2011. Since then, fed-eral construction spending has been shrink-ing, with deeper cuts likely in 2013.

Local government construction spend-

ing is also waning. The decline in houseprices has shrunk the property-tax base ofmany local agencies and school districts.The slowdown in population growth inGeorgia from an average of 1.7 percent peryear last decade to 1.1 percent between July2010 and July 2011 also cut into demandfor new schools.

State revenues have risen for tenstraight quarters, according to an October25 report from the Rockefeller Institute ofGovernment. In the latest period, coveringthe second quarter of 2011 to the secondquarter of 2012, tax revenues in Georgiaincreased 4.8 percent, slightly faster thanthe 3.2 percent rate for all 50 states. ButGeorgia, like most states, still has not madeup for the huge revenue losses of the reces-sion or the added demands to cover Medi-caid, underfunded public employee pensionand retiree health care plans, and incomesecurity programs for an elevated unem-ployment rate. Therefore, state spending onconstruction is unlikely to pick up in 2013.

Putting all of these pieces together, itappears Georgia, like the nation as a whole,will experience a rise in construction spend-ing in 2013, powered by a double-digitrecovery in residential construction andselective improvements in private nonresi-dential construction that will be enough tooffset a continued slump in public spend-ing. Construction employment will also risein the Peach State but conditions will be farfrom peachy. v

27November | December 2012

NewsContractorThe Beck Group CEO Peter BeckAnnouncesSuccession Plan To Transition CEO RoleBy End Of 2012Century-old provider of commercial realestate services will transition CEO role inanticipation of next phase of company’sgrowth. Current Eastern Division Direc-tor and company veteran, Fred Perpall,named CEO.

The Beck Group announced todaythat CEO Peter Beck has chosen his suc-cessor, effective January 1, 2013. Beck willassume the position of executive chairmanfocusing on marketing, strategy and inter-national operations. Fred Perpall, whomost recently served as The Beck Group’sdirector of Eastern Division operations,has been named the new CEO.

Perpall, age 38, will serve as just thefifth CEO in The Beck Group’s 100-yearhistory. Marking the first step in a multi-year transition, Perpall’s appointment car-ries on the firm’s tradition of promotingCEOs in their mid-30s. The Beck Group’stransition strategy allows new CEOs towork in partnership with their predecessorsfor a decade or more, enhancing the firm’sculture that reflects an obsessive commit-

ment to its employees and customers.“Our goal is to position ourselves for

growth at the beginning of our next cen-tury,” said Peter Beck. “We believe thatpromoting leaders with most of theircareers ahead of them ensures the vitalityand success of the firm. I look forward toworking collaboratively with Fred formany years.”

In his new role, Perpall will lead thecompany in continuing to integrate mul-tiple building disciplines and leveraginginnovative technologies to deliver superiorvalue to customers.

“Peter and I have enjoyed a greatworking relationship for the past 13years,” said Perpall. “I look forward to ourcontinued partnership as we build uponthe past and create a bright future for thefirm.” v

Strategic Planning Pays Off with NewColumbus Apprenticeship ProgramIndependent Electrical Contractors (IEC)

Georgia Chapter has worked diligentlybehind the scenes revamping the 1st yearColumbus Apprenticeship program. Plan-ning was in process over a year to overhauland create a new and improved program.The new program began September 11that the professional institution of the Turn-er Center with 21 apprentices representingsix IEC member companies.

IEC offers improved quality instruc-

tion by having direct control on how itoperates. In the past, many processes wereoutsourced through Columbus Tech,which resulted in extra steps to gettingstarted, and not much control over thescheduling or instructors. Columbus Techis an admiral institution, but the connec-tion to the needs of IEC contractors lieswith IEC. IEC had a few ideas on how todo things differently to best suit the needsof its members.

IEC’s new Columbus program adds asmoother process to register, schedules tomeet the needs of contractors, and instruc-tor supervision to ensure the IEC curricu-lum is provided in the most productiveway. IEC’s first year Columbus Appren-ticeship program is IEC directed, with theinterest of IEC members in mind.

IEC is a trade association for meritshop electrical contractors. IEC offers awide array of training programs forapprentices and experienced electricians,personnel referral including loan/borrowprograms, and provides a broad range ofinformational resources for electrical con-tractors in Atlanta and Georgia. v

IEC Recognized by National IEC Atlanta Chapter was recognized byIEC National as the ‘2012 ApprenticeshipChapter of the Year’ during the 2012National Convention and Expo in Ft.Worth, Texas. This is a very prestigiousaward as only one chapter is selected out ofthe 60 nationwide for this honor each year! The nature of this award is based upon thefollowing criteria: the percentage of mem-ber companies participating in the appren-ticeship program, use of innovative recruit-ing methods, and quality of student pro-grams and services. Other factors includehow well the chapter creates an IEC Com-

The Georgia Contractor28

Georgia

Fred Perpall

29November | December 2012

munity, student grade point averages andretention rates, as well as participation onlocal and national committees and instruc-tor performance regarding certificationsand training that make a direct impact oneducation quality.

Training Director, Todd Hawkinssaid, “It is with great pleasure that IECAtlanta was acknowledged as the ”2012Apprenticeship Chapter of the Year”knowing that it was the efforts and hardwork of contractor members, instructors,and staff that made it possible.”

Interested in becoming a member ofIEC? Contact our office at (770) 242-9277 for more information on the benefitsof IEC.

IEC is a trade association for meritshop electrical contractors. IEC offers awide array of training programs forapprentices and experienced electricians,personnel referral including loan/borrowprograms, and provides a broad range ofinformational resources for electrical con-tractors in Atlanta and Georgia. For addi-tional information on training or member-ship, contact Niel Dawson, ExecutiveDirector at (770) 242-9277 or go towww.iecatlanta.org

Bobby Tutor of Ft. Worth is the IECNational President and Janet Martin ofDenver is on the Awards Committee. ToddHawkins is holding the plaque. v

McCarthy Helps Build Legacy of Careat Winn Army Community HospitalBuilding firm extends work on governmenthealthcare projectThe Winn Army Community Hospital inFt. Stewart, Georgia, opened in 1983 andis part of a healthcare legacy that hasserved soldiers, military retirees, and their

families since December 3, 1940. To con-tinue their record of outstanding medicalcare and commitment to the local armycommunity, the U.S. Army Corps ofEngineers, Savannah District,www.sas.usace. army.mil, has selectedMcCarthy Building Companies Inc. toextend its current involvement on themedical campus by awarding the builderthe hospital’s second phase of renovations.

The $38 million, four-year projectconsists of a 43,000-square-foot additionand 55,000 square feet of renovated med-ical space, including an emergency depart-ment (ED), a nutritional department,outpatient ancillary, and administrativedepartments. With the new renovations,the ED and Family Medical Clinic willdouble in size, providing additional capac-ity needed to serve patients. An expandedlaboratory blood draw area and additionalpharmacy access windows will reduce waittimes and further enhance the patientexperience.

“The expansion of our medical capa-bility and services we provide is an excit-ing undertaking,” said Col. Ronald Place,commander of Winn Army CommunityHospital. “Our end goal is to give soldiers,military retirees, and their families thebest care possible; and this project willprovide our patients with the mostadvanced medical services in one centrallocation.”

Currently, McCarthy is working onPhase I, a $23 million clinical renovation,including a 65,000-square-foot additionand 1,000-square-foot alteration to thehospital.

With the Phase II addition and reno-

vations, the targeted LEED Silver hospitalwill be able to serve the 16,000 patients(active duty, family members, and retirees)within the region who are currently beingsent to network providers. The projectalso provides a local economic benefitthrough the hiring of local constructionworkers to support the expanded andupdated facility.

“Being selected for a second time bythe U.S. Army Corps of Engineers inSavannah is an honor for McCarthy,” saidKevin Kuntz, president of McCarthy’sSoutheast Division. “We look forward tofurthering our partnership with the ArmyCorps team and to building an advancedfacility to serve our military heroes andtheir families.”

The project architect is Leo A. Daly.Completion of the expansion and renova-tion is scheduled for October 2016. Ren-dering courtesy Leo A. Daly v

ommissioning for allbuildings designed andbuilt under a green build-ing standard fromASHRAE, the U.S. Green

Building Council (USGBC) and the Illu-minating Engineering Society (IES) wouldbecome mandatory under a new proposalopen for public input.

ANSI/ASHRAE/USGBC/IES Standard189.1-2011, Standard for the Design ofHigh-Performance, Green Buildings ExceptLow-Rise Residential Buildings, provides adesign standard for those who strive forhigh performance buildings. It covers keytopical areas of site sustainability, water-useefficiency, energy efficiency, indoor envi-ronmental quality, and the building’simpact on the atmosphere, materials, andresources.

Proposed addendum p would removethe ‘Acceptance Testing’ provision (Section10.3.1.1Building Acceptance Testing) forsmall buildings. The proposed addendum isopen for public review from Oct. 19-Nov.18, 2012. To comment on the proposedchanges or for more information, visitwww.ashrae.org/publicreviews.

Currently the standard implies thatwhen a building area is less than 5,000square feet, it is considered to have simplebuilding systems, and thus requires areduced level of commissioning effort,referred to as Acceptance Testing, accordingto Jeff Ross-Bain, a member of the Standard189.1 committee. However, building areadoes not relate to complexity as manybuildings less than 5,000 square feet can becomplex.

Under the proposed addendum, build-ing commissioning per Section 10.3.1.2becomes mandatory for all buildings thatare designed and built under the require-ments of the standard.

“Commissioning is a robust and wellsupported discipline with established guide-lines (ASHRAE and others), a long history

of use and with many practitioners,” hesaid. “The commissioning process is onethat adapts to the specific attributes of agiven building. A ‘simple’ building wouldonly require ‘simple’ commissioning regard-less of size.”

Ross-Bain noted that ‘Acceptance Test-ing’ is not a universally defined activity nordoes there appear to be specific instructionsor guidelines within the industry detailinghow this activity is formally completed.Also, a review of the mandatory require-ments of Standard 189.1 could be interpret-ed as producing a relatively complex build-ing (i.e. consumption measurement, on-siterenewable energy, daylighting control, out-door air delivery monitoring, economizers,condensate recovery, etc.), which requires ahigher degree of commissioning activity.

Finally, under the current ‘AcceptanceTesting’ section, Standard 189.1 would notmeet the minimum commissioning prereq-uisite of the Leadership in Energy and Envi-ronmental Design (LEED) rating system,which requires all buildings to undergo thecommissioning process.

ASHRAE, founded in 1894, is a build-ing technology society with more than50,000 members worldwide. The Societyand its members focus on building systems,energy efficiency, indoor air quality, refrig-eration, and sustainability within the indus-try. Through research, standards writing,publishing and continuing education,ASHRAE shapes tomorrow’s built environ-ment today. v

Mandatory Commissioning for All Buildings Proposedfor Green Building Standard

The Georgia Contractor30

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