Alabama Construction News

CONSTRUCTIONA L A B A M A

N E W S

University of Alabama

Construction Engineering Program on the Rise

AUG/SEP 2012

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2012 Alabama Legal/Financial

Digest

Growth in the Southeast

Product & Efficency Survey AIRBUS comes to Alabama ABC touts Federal wins

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FEATURES

Tracking Growth in the SoutheastEconomic Prospects for the Southeast Buoy Construction Hopes

University of Alabama Construction Engineering Degree Program Continues its Growth

Legal/Financial Digest Take a look at Alabama’s leaders in Law & Finance

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03AUG/SEP 2012 AL CONSTRUCTION NEWSphotograph by STEVEN DEVRIES

DEPARTMENTS

06 From the President ABC’s path for 2013

BUILDING ALABAMA

09 Projects Updates & Reports Children’s of Alabama Benjamin Russell Hospital opens. Ram Tool

expands. BL Harbert Builds at Fort Knox and South Carolina. Hoar completes Arkansas project. UA’s Rose Towers implodes to make way for new buildings. Brasfield and Gorrie LED signs New York.

22 Outlook & Trends What is the latest news on industry outlooks and trends? See the

information that predicts a shift in the construction trade.

ABC NEWS & NOTES

56 A Perfect Storm Congressman Robert Aderholt believes new regulations and threats

of increased taxation are weighing on the creation of new jobs and investments by entrepreneurs.

62 Airbus Airbus is coming to Alabama. Unions are expected to make a pitch to

represent Airbus workers. ABC’s letter regarding the state’s Right-to-Laws gets attention throughout Alabama.Description goes here.

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04 AL CONSTRUCTION NEWS AUG/SEP 2012

It’s tough out there. And that’s why we’re here for you. We’ve teamed up with Dodge to give you access to business development and bidding e�ciency tools, at a special ABC rate. Call 615.298.7744, or email [email protected] and together, we can build your business.

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CONSTRUCTIONA L A B A M A

N E W S


Publisher Jay Reed

Associate Publisher/ Managing Editor Todd Walker

Publishing Coordinator/Circulation Charles Hall

Accounting

Jenny Wilson

Advertising Sales

George Pierce

Editor

Hugh J. Rushing

Print Production

Alliance Publishing Group

Art Direction

Ideogram, LLC

Copy Editor

Megan Beavers

Alabama Construction News is published by Associated Builders & Contractors, Inc.

Copyright © 2012 ABC-Alabama All rights reserved. Reproduction in whole or part

without written permission is prohibited.

Address all correspondence to: Alabama Construction News

1830 28th Avenue So. Birmingham, AL 35209

For advertising information:

contact George Pierce at 205.870.9768 x100 or email [email protected].

For editorial information:

contact Hugh J. Rushing at 205.592.0389 or email [email protected].

ASSOCIATED BUILDERS AND CONTRACTORS OF ALABAMA CONTINUES to center our leadership and management philosophy around the “Race for Relevance” book we mentioned in a prior edition of Alabama Construction News. Over the next two years I will actually be a part of a national class that

will dissect the book in every way possible. The goal I have set for myself in taking the class is: “The members that belong to ABC are investing in us to better the industry. Everyday our business should be to increase productivity, drive down costs and spur economic development. This is what we are driven to build for you.”

How do we plan to do that? Simply by listening to the industry. After a recent “road show” across the state, your Executive Committee and Board of Directors are embrac-ing a plan to support that goal.

I ask you to join us in this endeavor. ABC of Alabama is a sound investment for the bet-terment of the future, and we need your help.

ABC’S PATH FOR 2012-2013

Jay Reed,Publisher/ President - Associated Builders and Contractors

From the PresidentJay Reed President, ABC of Alabama

• To encourage a change in current Sales & Use Tax Exemption procedures. Reinstate the 2004 process regarding sales and use tax exemptions on tax exempt State projects. ABC has met with the Attorney General and the Revenue Commis-sioner, and we feel confident this will pass in 2013. House and Senate sponsor are confirmed.

• To revise the antiquated mechanics lien process. ABC of Alabama has researched 14 States Mechanics Lien bills and we are now looking at Florida’s as our model. We will have a task force working on this subject and hope to have a bill ready by November.

• To close the door on potential Project Labor Agree-ments (PLA) in Alabama in public works projects.

• To take an in-depth look at various construction delivery methods on public works in Alabama and explore legislation that encourages construction projects in the most efficient way possible.

• To revisit workforce development. As Alabama’s construction industry innovates “Go Build Ala-bama,” ABC of Alabama has embraced a new era in workforce development. ABC of Alabama pledges to be innovators in writing the next chap-ter of workforce development.

photograph by NAMEGOES HERE

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07AUG/SEP 2012 AL CONSTRUCTION NEWS

• Foundation Repair• MacLean Helical Piers• Helical Tiebacks• Pressure Grouting• Soil Stabilization• Titan / IBO Anchors & Piers• GeoStone Retaining Walls• Epoxy & Urethane Injection

• Foundation Repair• MacLean Helical Piers• Helical Tiebacks• Pressure Grouting• Soil Stabilization• Titan / IBO Anchors & Piers• GeoStone Retaining Walls• Epoxy & Urethane Injection


BUILDING

ALABAMACompelling Projects,

Updates & Reports For and By Alabama Firms

photograph by STEVEN DEVRIES

First and Trim The famous hedges of Sanford Stadium get a cut. Pute min exeriu-reet dolor se em irilisci tat nibh et nos eugait adt, quam iust


serve the children and families of Alabama. The beauty of the Benjamin Russell Hospital for Children, its advanced technol-ogy, its environmental aspects and its family-focused design all serve as a wonderful backdrop for the skill, knowledge and commitment of the healthcare professionals who work here to provide care every day. Our team is focused on one mighty mission: to provide the very best healthcare available to ev-ery child who walks through our doors. That is the true impor-tance of this expansion.”

It is the largest single medi-cal facility expansion project in the history of Alabama, and will make Children’s the third-largest pediatric hospital in the United States, as measured by square footage. The total of 380 beds and bassinets ranks Chil-dren’s in the top 10 pediatric

BIRMINGHAM, AL– THE BENJAMIN Russell Hospital for Children (BRHFC) opened for patient move-in on August 4. The opening marked the highly anticipated completion of construction on the 12-story, 760,000-square-foot, $400 million expansion

at Children’s of Alabama, the state’s only freestanding pedi-atric hospital.

HKS, Inc., in partnership with Giattina Aycock Studio, served as architect. KLMK Group was project manager; Hoar Construction, in partnership with KBR, served as construction manager.

Located one block north of the existing facility, BRHFC will ac-commodate projected growth in patient volume, anticipated medi-cal technology needs and the planned consolidation of pediatric services including cardiovascular surgery and comprehensive solid organ transplant care. The hospital is licensed for 332 beds plus 48 neonatal intensive care unit (NICU) bassinets.

Mike Warren, president and CEO of Children’s of Alabama, said, “We are delighted to open the doors of this magnificent facility to

medical centers, based on bed count. The building is also the first and largest building proj-ect in Alabama history to gain certification in Leadership in Energy and Environmental De-sign (LEED).

The building is named in honor of legendary Alabama entrepreneur Benjamin Rus-sell (1876-1941) and to recog-nize the $25 million gift from his grandson, Ben Russell and Ben’s wife Luanne, both long-time hospital supporters.

An Iconic Campus BuildingAccording to Doug Compton,

AIA, principal/senior designer with HKS, the BRHFC building stands as an iconic presence representing a new standard of pediatric healthcare offered in Alabama. “The hospital’s curvi-linear design combines vision, gradate and opaque glass types that are punctuated with colors

photograph by BLAKE MARVIN

Children’s of Alabama Benjamin Russell Hospital

for Children Opens

P R O J E CT

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interspersed throughout the building – in-side and out – for visual interest.

The bed tower’s orientation promotes views to the central business district and Red Mountain, an important Birmingham landmark,” continued Compton. “The lobby and plaza form a visual tie to the 17th Street corridor, an urban link to the Railroad Park and, ultimately, downtown Birmingham.”

Family-Centered CareBRHFC offers private, acute care rooms

that are 30 percent larger than the largest rooms in the present build-ing and, for the first time, all-private rooms in criti-cal care units. Each fea-tures a sleeper sofa, large wardrobe and small safe for valuables, along with a special patient education/entertainment system.

For more family convenience, each patient floor offers a laundry room and a kitchen equipped with a full-size refrigera-tor, microwave and ice machine. Waiting areas at the end of the hallways are awash with natural light and provide sweeping views of the city, while 120 original works by Alabama artists decorate the public areas, adding to the family-friendly environment.“Patients, families and visitors will find

their way through the building using any of several visual cues that have been incor-porated into the hospital’s interior design,” said Iris Dates, IIDA, EDAC, LEED AP, vice president/director of design for healthcare interiors for HKS. “A blue patient journey curving pattern within the terrazzo floors

winds through the public areas, directing foot traffic to and from entrances, elevators and patient care areas. All patient floors and rooms are identified not only by num-ber, but also by color and a special theme unique to each floor.”

Ahead of Schedule, Under Budget, Working with the Community

The project was completed ahead of schedule and under budget. On a project of this size, coordination and collabora-tion were critical to the successful deliv-ery of the BRHFC. “From the onset, the project team had a laser focus on achieving our primary objective, which was to fulfill our commitment to the owner – finish on schedule and within their required budget. After three challenging years, we were able to actually over-deliver. The project com-pleted on schedule and under budget. We absolutely credit this achievement to the collaboration of the entire project team,” stated Bill McMahon, president & COO of KLMK Group.

Doug Eckert, executive vice president of Hoar Construction said, “The Joint Venture

construction team was committed to mak-ing the project an example for local partici-pation and development of minority-owned and disadvantaged businesses. A partner-ship with the Birmingham Construction Industry Authority helped us do just that. More than 100 local minority-owned and disadvantaged businesses helped construct this wonderful facility, and thousands of lo-cal workers were employed, making a huge impact on families in this community.”

Environmentally FriendlyBRHFC gained the Leadership in Energy

and Environmental Design (LEED) certifi-cation due to its design and use of sustain-able, energy-efficient and environmentally

responsible materials. BRHFC requires less maintenance and will last longer so that cost savings will enable Children’s to pro-vide excellent healthcare to the children of Alabama.

A highlight of the effort to gain LEED certification is the rooftop gardens that are planted with native sedum to provide insulation and oxygenation. Up to 30,000 gallons of condensate is collected from the air conditioning system and used for irrigation and also to cool equipment. Designated green spaces on campus, 140 bicycle racks, and the orientation of the building all contribute to the hospital’s Earth-friendly profile.

“It has been a pleasure to work with such a talented and devoted team on this proj-ect,” said Mike McDevitt, executive vice president, facilities and technology, Chil-dren’s of Alabama. “All of the players in-volved at every level with the construction of this facility have given 100 percent. To each of them, it was more than just another job. It was personal and meaningful, and that showed in their work and in the fin-ished facility. I can’t wait to see it used to

provide care and healing for children today and well into the future.”

About Children’s of AlabamaChildren’s of Alabama has provided spe-

cialized medical care for ill and injured children across the state and throughout the southeastern U.S. since 1911. The Ben-jamin Russell Hospital for Children is the only hospital in Alabama dedicated solely to the care and treatment of children and is recognized by the American Nurses Cre-dentialing Center as a Magnet-designated hospital for excellence in nursing care. In 2010, 2011 and 2012, Children’s was ranked among the best children’s hospi-tal programs in the nation by U.S. News &

We are delighted to open the doors of this magnificent facility to serve the children and families of Alabama. The beauty of the Benjamin Russell Hospital for Children, its advanced technology, its environmental aspects and its family-focused design all serve as a wonderful backdrop for the skill, knowledge and commitment of the healthcare professionals who work here to provide care every day.

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World Report. It is a private, not-for-profit hospital that serves as the primary site of the University of Alabama at Birmingham pediatric medicine, surgery, research and residency programs. Last year, patients made more than 634,000 outpatient – and nearly 14,000 inpatient – visits to Chil-dren’s from every county in Alabama and from 47 other states.

About HKSHKS, ranked among the top healthcare-

specialized architectural firms by Mod-ern Healthcare and BD World Architec-ture, understands and embraces holistic healthcare. Operating from 29 offices on four continents, the firm focuses on inno-vative design, process and delivery. HKS collaborates with each client to evaluate transformational concepts that support and improve the patient and family expe-rience and operational efficiency.

About KLMK GroupKLMK Group, Inc. is a leading provider

of innovative solutions focused on the con-tinuous improvement of the healthcare facility development process. The firm provides independent, objective and pro-fessional advice to owners involved in all aspects of constructing new facilities and capital projects. With offices in Richmond, Atlanta, Birmingham, St. Louis, Houston and Dallas, KLMK challenges clients to embrace new models of care delivery that provide efficient and flexible alternatives for future growth.

About Hoar Construction:Hoar Construction, recognized annually

by Engineering News Record as a top U.S. general contractor and construction man-ager, works to maximize value and quality on every project. Combining leading-edge technology with progressive thinking and

attention to detail, the firm is changing the industry in its delivery of construction management, general construction, pre-construction, and program management services. Hoar Construction operates from offices in Birmingham, Mobile, Houston, Austin, Orlando, and Nashville serving healthcare, retail, commercial, institution-al and industrial clients throughout the U.S.

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BIRMINGHAM BASED RAM TOOL and Supply Company announces the ac-quisition of Marco Supply, headquartered in Roanoke, Virginia. The acquisition adds 12 branches to Ram Tool’s existing group of 18 and expands the company’s reach up the Atlantic Coast.

“With this growth, we will be able to bring Ram Tool service to existing customers and new relationships. These are great markets for us,” said Ram Tool CEO Hillery Head.

Ram Tool distributes tools and supplies to commercial contractors. Its 30 branches stretch from San Antonio, Texas to Wash-ington D.C. Ram Tool’s focus is on excellent customer service, reflected by the company motto of One Call Gets It All.

Said Head, “ We welcome the Marco em-ployees into the Ram Tool Family and Cul-ture. Together we can do great things for our customers,” said Head.

Ram Tool now has branches in Alabama, Texas, Louisiana, Tennessee, Florida, Geor-gia, North Carolina, South Carolina, Virgin-ia, West Virginia, and Washington D.C.

Head is optimistic for the future, saying “We are in for the long haul, and we see a great future for the construction industry.”

Ram Tool and Supply Expands Footprint with

Acquisition

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The facility’s innovative design will feature:

Energy performance targeted to be 50 percent more efficient than code

Solar panels for electricity production

Lighting systems that will be 30 percent more efficient than standard buildings

Air conditioning and heating systems targeted to be 40 percent more effi-cient than code

Advanced technologies including cloud computing to reduce electrical consumption

An energy management system that monitors and shuts down areas and rooms not in use

BL Harbert to Build at Fort Knox and in South Carolina

BL HARBERT INTERNATIONAL, WITH CDFL AS ITS DESIGN partner, has been selected by the U.S. Army Corps of Engineers to provide design-build services for the Engineer Battalion Complex at Fort Knox, Kentucky. This facility will be used for the 19th Engineer Battalion that recently served in Afghanistan in support of Opera-tion Enduring Freedom.

The $41 million project includes a 94,077-square-foot Barracks that will house 252 personnel; a 22,600-square-foot Battalion Head-quarters accommodating command functions; and 70,198 square feet of office/warehouse space for the Company Operations Facility.

The facility is being designed to meet LEED Silver standards and will include the use of a geothermal ground-coupled heat pump system. Construction is set to start by the end of September.

Harbert has also been selected by the State of South Carolina to provide construction services for the Darla Moore School of Business at the University of South Carolina.

The $65 million, 250,000 square feet project is to be built to LEED Platinum standards with a goal of being the largest Net-Zero build-ing in the world.

Hoar Winds Up Arkansas Hospital

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HOAR CONSTRUCTION recently completed work on a 95,000 square foot replacement hospital in Siloam Springs, AR. According to the hospital’s news release, the project had a cost of $40-million and was begun in early 2011.

The new Siloam Springs Re-gional Hospital replacement facility contains 42 private in-patient beds to serve medical, surgical and ICU patients. The building will accommodate key units and all support spaces in-cluding Medical Surgical Nurs-ing Units, Intensive Care Units, Women’s Services, Emergency

BL Harbert International Engineer Battalion Complex at Fort Knox, Kentucky


The Montgomery Chapter of the NAWIC

The Montgomery Chapter of the National Association of Women in Construction (NAWIC) held its second MAGIC Camp (Mentoring A Girl In Construction) in June. Fourteen young women attended. During the week campers built dog houses, learned about electricity by constructing an electrical board and lamp, made stepping stones from concrete and cut garden decorations using a plasma cutter and then welded them to rebar. The dog houses were donated by the girls to the Elmore County Humane Shelter, while the campers kept all their other projects.

Birmingham’s chapter of NAWIC saw its president, Stephanie Crane, of M. J. Harris Construction Services, elected as region 2 director of the national NAWIC earlier in the year. She is slated to begin her term at the national convention in Denver, Colorado in October.

NAWICMontgomery Chapter builds dog houses for the Elmore County Humane Shelter

Hoar Construction Siloam Springs Regional Hospital

Department, Surgery, PACU/ Same Day Surgery, Endoscopy and Imaging Departments.

The hospital is owned by Franklin, Tennessee-based Community Health Systems and was designed by Thomas Miller and Partners of Brentwood, Tennessee.

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16 AL CONSTRUCTION NEWS AUG/SEP 2012 photography by THE UNIVERSITY OF ALABAMA

UA’s Rose Towers Imploaded to make way for a New Residental Community

Making Way

First and Trim The famous hedges of Sanford Stadium get a cut. Pute min exeriu-reet dolor se em irilisci tat nibh et nos eugait adt, quam iust


IT WAS A GIGANTIC display of fireworks on July 4 as the University of Alabama’s 43- year old

Rose Towers was imploded into a 2,500 truckload pile of debris. The destruction of the 13-story building will make way for the second phase of the Presiden-tial Village residential commu-nity. The 864 bed development will open in August of 2014 in time for the school’s fall term. Part of the Rose Towers site will also be used for building a student activity center. The first phase of the Presidential Village, which will house 971 students, has just opened. The construction contract for the second phase of construction has not yet been awarded, but site work is already underway.Rose Towers was completed in 1969 and housed from 750 to 900 students annually. Uni-versity officials estimated that more than 30,000 students lived there during the build-ing’s history. Rose Towers also housed a day care center for many years.

In addition to the residen-tial community replacing Rose Towers, the Alabama Board of Trustees has approved the im-mediate construction of a new 35,000 square foot strength and conditioning facility. The building will be sited between the Hank Crisp Indoor Prac-tice Facility and the Mal M. Moore Athletic Facility. The project will cost about $9 mil-lion and will be funded by rev-enue bonds and by a provision by the Crimson Tide Founda-tion of $965,000. The build-ing will house a weight room, cardio/rehab area, offices and workrooms, a nutrition bar and medical office suite. Expedited construction plans calls for the facility to be completed by Jan-uary, 2013. Birmingham-based Davis Architects is in charge of the design.

BIRMINGHAM’S BRASFIELD & GORRIE WAS RECENTLY awarded the U.S. Customs and Border Protection Light Emitting Diode (LED) Signage project in Buffalo and Lewiston, New York.

The $2-million project contract will include the installation of high-visibility, energy-efficient LED signs at the Lewiston Land Port of Entry, which is the northernmost border crossing in the Buffalo area. Additionally, new high-visibility, energy-efficient signs will be installed at the Peace Bridge facility that connects downtown Buffalo to Fort Erie in Ontario, Canada.

The LED signage upgrades offer easy-to-see-and-read bilingual signage that can be changed instantly as traffic dictates. The signage provides instructions and information to travelers as they approach the primary inspection stations, saving up to 20 seconds per vehicle transitioning through the port. This state-of-the-art technology is increasingly popular among Customs and Border Protection officials since the technology increases the functionality, energy efficiency and overall safety of port operations. Many of the nation’s busiest land ports of entry are installing LED signage because of its added value.

This is the second land port of entry LED signage contract award-ed to Brasfield & Gorrie. The first contract added LED signs at four land ports of entry located between McAllen and Brownsville, Texas. That work was completed in July 2011.

Brasfield & Gorrie is partnering with the U.S. General Services Administration and U.S. Customs and Border Protection to com-plete the project. The work is expected to be completed in October.

Brasfield & Gorrie Gets LED Signage Project

in New York

University of Alabama Rose Towers


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ALABAMA’S DEPARTMENT OF Transportation could let the first phase of the Northern Beltline project be up for bid late this year or in early 2013. However, this is dependent upon how fast the U.S. Army Corps of Engineers acts on an environmen-tal permit.

The initial work will be a 3.4 mile six-lane link between Alabama 79 and Alabama 75 in Palmerdale, northeast of Birmingham.

The entire project will be 52.5 miles and connect I-20/59 in Bessemer to I-59, north of Trussville. The project was es-timated to cost some $3 billion when priced in 2010 and will be funded through an 80 percent grant from the Appalachian Regional Commission.

The project is not without its controver-sies. Some local residents have opposed the plan claiming threats to water sources such as the Cahaba River and Turkey and Five Mile Creeks as well as fundamentally changing the rural character of northern Jefferson County.

In June, the Southern Environmental Law Center claimed that a study of the project’s benefits done by the Alabama Cen-ter for Business and Economic Research (CBER) grossly exaggerated the economic impact of the plan. Where CBER projected as many as 70,000 direct and indirect jobs during the 21-year projected construction of the project with a $7 billion impact, the Law Center said that project would cre-

ate about 2,800 additional jobs during the years of construction paying less than $35,000 annually.

The Ochs Center for Metropolitan Studies in Chattanooga claimed that the CBER used Federal Highway Administration numbers which are applicable only for national stud-ies. CBER Director Samuel Addy said that the Ochs center was incorrect in that claim.

The Birmingham Business Alliance has supported the project as a priority in its Blueprint Birmingham strategic eco-nomic plan.

Additionally the northern route would reduce through traffic on the often clogged downtown sector of I-20/59.

Northern Beltline Project Letting Possible Before End of 2012


NEARLY UNNOTICED IN the recently announced Su-preme Court rulings on the Affordable Healthcare Act and Arizona’s immigration act, was a 7-2 decision in which the court ruled against the Service Em-ployees International Union. The Court decided that SEIU

could not mandate that employees pay a special union fee that would be spent on political activities without providing informa-tion about the fee and an opportunity to object to it. The union collected an extra $6.45 a month from state employees in Cali-fornia in the fall of 2005. A group of dissenting employees sued, claiming their rights had been violated. California is not a right-

to-work state, so even nonmembers of unions are forced to pay dues if they work in an area represented by unions.

Most of SEIU’s members work in the health care, public service/government and property services. SEIU spent $28 million on sup-port for the election of President Obama in 2008, and proclaimed “it was the organization that spent the most to help Barack Obama get elected president.”

The original suit grew out of efforts to oppose two ballot mea-sures, which were seen as targeting public unions. The union raised almost $10 million. The court ruled in favor of the com-plaint made by Dianne Knox and other members who wanted to opt out of the $12 million assessment the union said it required.

Justice Samuel Alito Jr. wrote, “This aggressive use of power by the SEIU to collect fees from nonmembers is indefensible. Even a full refund would not undo the violation of First Amendment rights. A public-sector union…may not exact any funds from non-members without their affirmative consent.” Two generally liberal justices, Sotomayor and Ginsburg, wrote their own opinion with Sotomayor saying “When a public-sector union imposes a special assessment intended to fund solely political lobbying efforts, the First Amendment requires that the union provide non-members an opportunity to opt out of the contribution of funds.”

Previous courts decisions have held that unions are permitted to bill nonmembers for “chargeable expenses:, but may not re-quire nonmembers to fund its political and ideological projects.

Supreme Court Rules Against SEIU Political Fees

This aggressive use of power by the SEIU to collect fees from nonmembers is indefensible. Even a full refund would not undo the violation of First Amendment rights.


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ALABAMAU P D AT E S & R E P O RT S

(205) 326-1409

3420 Richard Arrington Jr. Blvd. N.

Birmingham, AL 35234

Birmingham Location:

630 Kissimmee Avenue Ocoee, FL 34761

Florida Location:

Our Name Says It All...

Mobile-based White-Spunner Construction Ranked 4th among winners in “Best Company to Work for in Alabama 2012” by Business Alabama

White-Spunner Construction, Inc. was recently named as one of the Best Compa-nies to Work for in Alabama 2012. This third annual program was created by Business Alabama publication and Best Companies Group. Business Alabama and partner Best Companies Group announced the 2012 win-ners at an award event on August 1 at the Birmingham Museum of Art. At the event, White-Spunner Construction was ranked 4th among the winners in the medium-size company category.

This survey and awards program was de-signed to identify, recognize and honor the best employers in Alabama, benefiting the state’s economy, workforce and businesses.

The list is made up of 18 companies split into three categories: 6 small-sized companies (15-49 U.S. employees), 6 medium-sized companies (50-249 U.S. Employees) and 6 large-sized companies (250 and more U.S. Employees). From those employee-survey responses, 18 companies were recognized for providing exceptional working environ-ments in the state. White-Spunner Con-struction has been named one of this year’s Best Companies to work for in Alabama in the medium category.

“We are honored to be recognized as a top employer in Alabama. Our employees are the lifeline of this company, and their commit-ment to excellence is visible at all levels. So,

creating a positive work environment and giv-ing them the support they need is a pleasure,” says John White-Spunner, CEO.

Companies from across the state entered the two-part survey process to determine the Best Companies to work for in Alabama. The first part consisted of evaluating each nomi-nated company’s workplace policies, prac-tices, philosophy, systems and demographics. The second part consisted of an employee survey to measure the employee experience. The combined scores determined the top companies and the final ranking. Best Com-panies Group managed the overall registra-tion and survey process in Alabama, analyzed the data and determined the final rankings.

We Recommend:

Michigan Bans Government

Mandate PLAs

www.bestcompaniesal.com

In late June, Michigan’s governor signed an act which makes PLAs that discriminate on the basis of labor affiliation illegal. The act originally was passed in 2011, but a federal judge suspended the act earlier this year. The new law addresses the technical concerns of the judge’s ruling.

Contractors may enter into a pre-hire agreement with labor unions, only if doing so is voluntary and not mandated by a pub-lic entity. In addition to barring prohibitions or requirements for PLAs, the act requires “the neutral, economical, nondiscrimina-tory and efficient procurement of construc-tion services by the state.”

Michigan joins thirteen states that have banned PLA mandates to some degree on publicly funded projects. Ten of those actions have occurred in the past eighteen months.

To be considered for participation, companies have to fulfill the following eligibility requirements:

Be for profit, not-for-profit business or government entity

Be a publicly or privately held business

Have a facility in Alabama

Have at least 15 employees in Alabama

Be in business a minimum of 1 year

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BL HARBERT BL HARBERT

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ABC of Alabama presents

• F OR ALABAMA •

Industry Outlook & Trends

W ITH GROWTH IN THE STATE’S ECONOMY IN THE first half of 2012 looking weaker than expected, economists at The University of Alabama’s Center for Business and

Economic Research (CBER) have lowered their expectations for 2012 as a whole. CBER now anticipates real GDP growth of about 2.0 percent for the year, down from a forecast of 2.5 percent last quarter. About 10,000 jobs could be created across the state this year, a gain of about 0.5 percent. Job growth is expected to strengthen in 2013 when a 1.5 percent increase in nonfarm employment is forecasted.

Job gains have been tepid thus far with 4,500 nonfarm jobs added across the state between May 2011 and May 2012. Businesses in transportation equipment manufacturing, leisure and hospitality, professional and business services, retail trade and healthcare ser-vices have been the major sources of job creation so far this year. Unemployment has fallen from 9.3 to 7.4 percent over the past year, with some of the decline due to a shrinking labor force or discouraged job seekers in most of the state.

The government sector has been hit hardest by job losses. State government shed 7,200 workers over the past year and local gov-ernment employment dropped by 2,100. A total of 4,700 education positions were among the jobs cut by state and local governments. However, the jobs picture appears to be stabilizing in most Alabama metro areas in recent months. But during the past 12 months, only Florence-Muscle Shoals saw an increase in nonfarm employment coupled with labor force growth.

Exports continue to be a source of strength for the state’s economy; shipments were up 14 percent to $4.8 billion during the first three months of 2012 compared to the first quarter of 2011. Transporta-tion equipment exports, in particular, continue to rise. But exports could be dampened by the financial and debt crises in Europe as well as the weaknesses found elsewhere.

Alabama’s tax receipts are continuing to grow in the fiscal year 2012, with total revenues up almost 4.0 percent through June. Ap-propriations to the Alabama Education Trust Fund have risen 6.8 percent during the first nine months of this fiscal year, while appro-

2012 Alabama Forecast Lowered by UA Economists priations to the General Fund are up 21.9 percent. CBER expects

tax collections to continue at about the same pace through the re-mainder of the fiscal year.

Business sentiment among executives statewide, measured by the Center’s Alabama Business Confidence Index™ (ABCI), fell 6.6 points to 50.2 on the third quarter 2012 survey. The CBER said that generally firms are not expecting growth to pick up this quarter and are likely to be cautious about hiring and capital investment.

The complete outlook is available at http://cber.cba.ua.edu/pdf/ab2012q3.pdf

Alabama GAINED 4,500 jobs from May 2011 to May 2012, while the seasonally adjusted unemployment rate dropped from 9.3 to 7.4%. Nonfarm payrolls totaled 1,881,100 in May 2012, up from 1,876,600 a year ago.

The seasonally adjusted number of unemployed workers DECLINED significantly, from 203,806 in May 2011 to 159,218 in May 2012. However, a 2.5% drop in the state’s civilian labor force, which shrank from 2,197,336 to 2,143,105 during this time, also contributed to the improvement in unemployment.

Total nonfarm employment is forecasted to INCREASE about 0.5% in 2012, with most gains in transportation equipment manufacturing, professional & business services, educational & health services, & food services & drinking places.

The state’s economy is estimated to EXPAND by approximately 2.0% in 2012, following an estimated 1.0 to 1.5% gain in 2011.

After increasing 5.0% in fiscal year 2010-2011, state tax revenues are expected to GROW by 3.0 to 4.0% in FY2012, depending on the pace of economic & payroll growth.

THIRD QUARTER HIGHLIGHTS

O U T L O O K & T R E N D S

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FMI, THE LARGEST PROVIDER OF MANAGEMENT consulting and investment banking to the engineering and construc-tion industry, releases the second quarter 2012 Construction Out-look Report. FMI’s forecast calls for 3% growth for construction put in place (CPIP) by the end of 2012 and another 7% in 2013 for a total of $882.4 billion. This is $92.6 billion more than the lows of 2011.

Despite the constant confusion of news from Europe and uncer-tainty and inaction in the U.S. Congress, there are some positive signs in the economy. As one might expect, improving housing construction is helping to lead the way, especially multi-family housing. However, power construction is another strong point, and even commercial construction will show signs of rising from its slumber. Nonetheless, slow growth may be even more challeng-ing than large market drops or boom times, because it requires improved management, precision market research and creative business development.

IN MAY 2012 ALABAMA NONFARM EMPLOYMENT TOTALED 1,881,100 still 145,600 below its December 2007 peak of 2,026,700. Over the 12-month period ending in May 2012, the state gained a total of 4,500 jobs. Goods producing businesses lost 4,200 workers while the services provided sector gained 8,700. Among goods pro-ducers, manufacturing added 2,900 jobs and construction had a net loss of 7,200. Construction sector payroll losses were pretty much across the board, including building construction (2,200), heavy and civil engineering construction (1,500), and specialty trade con-tractors (3,500). Within manufacturing, only three industrial regis-tered job gains during the past 12 months: transportation equipment manufacturing (3,200), mostly in motor vehicle parts manufacturing (2,000); primary and fabricated metals (800); and paper manufac-turing (100). Several manufacturing industries posted sizable job losses, including textiles and apparel (1,400); wood products (600), furniture (600); and food manufacturing (300). However, most other manufacturers saw only modest job declines over the past year, with employment stabilizing in recent months.

Nonf

arm

Em

ploym

ent

Unem

ploym

ent R

ate

EmploymentUnemployment Rate

1,500 0

1,600 2

1,700 4

1,800 6

1,900 8

2,000 10

2,100 12

Alabama Nonfarm Employment and Unemployment RateEmployment (Thousands), Unemployment (Percent)

Source: cber.cba.ua.edu

1990 1993 1996 1999 2002 2005 2008 2011

Economic Lookout: 3rd Quarter FMI Construction Outlook

Alabama Forcast (Annual Percent Change)

Probability: Forcast (60%) Range (90%)

Real GDPrange

2.3 1.5 2.0 2.1 0.5 to 2.5 1.5 to 3.0 1.8 to 3.5

2010 2011 2012 2013

-0.8 -0.2 0.5 1.5 0.1 to 1.5 0.7 to 2.3

-2.5 5.0 3.9 4.1 2.5 to 6.0 3.0 to 7.0

Employmentrange

Total Tax Receipts, FYrange

Residential Construction is coming back leading by 32% growth in multi-family housing.

In Nonresidential Construction the forecast is mixed with healthcare and manufac turing showing the most positive signs of growth.

Lodging CPIP is expected to grow 4% & rebound somewhat to 7% & 8% in 2013 & 2014.

Office Construction should be 4% by the end of 2012 & improve to around 6% for 2013 through 2014.

Commercial Construction is beginning to grow again. FMI expects 5% growth in CPIP this year, followed by 8% growth in 2013 to around $49 B.

Healthcare Construction is expected to only rise 3% in 2012, that will strengthen to double digits by 2015, achieving record highs around $52.6 B.

Education Construction will have only a 1% increase in CPIP in 2012 & a slight rise of 2% in 2013.

Religious Construction will be flat in 2012, with some revival in 2013 to 6% growth at $4.3B.

Public Safety Construction will be flat in 2012, but will the grow 6% in 2013 to $4.3B.

Amusement & Recreation Construction will climb 8% to $17.4B in 2013.

Transportation Construction will grow 3% in 2012 & to 5% through 2015.

Communications Construction will experience steady growth of 4% to 6% through 2015 with 2012 ending up around $18.5B.

Manufacturing Construction is expected to rise 3% in 2012 & show steady increases to 2015.

Power-Related Construction is forecasted to have a 10% rise for 2012 & another 10% in 2013 to $108B.

Highway CPIP will drop 2% in 2012 & grow just 1% in 2013 to reach $77.7B or back near 2007 levels.

Sewage & Waste Disposal CPIP is expected to be around $23.9B.

Water Supply is beginning to grow, but will gain only 2% in 2012 and 3% in 2013 to reach $14.7B.

Conservation and Development growth is expected at 2% in 2012 and demonstrate slow, steady progress through 2015.

Construction Put in Place is predicted to grow 3% by the end of 2012.So

urce:

cber.

cba.u

a.edu


FMI RECENTLY RELEASED AN ARTICLE titled “The Science of Efficiency and Pro-ductivity.” The primary objective of this article centers on the current perception of the marketplace and how it is affecting the construction industry.

Recent observations have suggested that construction companies are being contracted based on low-priced services,

leaving little room for value propositions. There has been a large increase in lower priced construction. This implies that cus-tomers are placing more emphasis on bids rather than the quality of work being done. Those in the construction industry who continually lower their prices because of the competitive landscape are reinforcing this behavior.

As long as there is one bidder willing to work for cost, or even less in some cases, the paradigm of low cost providers will win. The work being done is suffering because of this. This has been causing chaos throughout the contractor bid war rooms.

Because there are so many different ways for contractors to track direct and indirect costs, we can easily see how so much variability could exist. Costs across firms are never going to be equivalent. And this is eliminating some companies from the playing field. Firms

that fail to recognize this trend are putting themselves at risk.

Efficiency is quickly becoming more and more important across construction organizations. Whether one examines its foundation in Total Quality Management (TQM) or its younger relative Lean Six Sigma, firms recognize the reduction of waste as an essential strategic imperative.

Being on a level playing field with fellow competitors is no longer good enough. Pro-duction assets include those advancements in technology with a seamless integration and a consistent, standardized approach. These gains are helping companies not only for short-term purposes but also for long-term sustainability.

Lean construction, prefabrication/modularization and building information

modeling (BIM) represent not only the current concepts

available to contractors but also a glimpse of the

future of construction. These leanings are imperative for any companies that want to stay at the head of the race. Construc-tion companies are

becoming more and more like manufactur-

ing firms and are every day turning away from that

traditional construction firm way of doing things.

One common misconception, however, is that the adoption of these trending systems

will immediately provide a return. There is obviously value in implementing these methods, but it is very hard for companies to make this innovative switch.

Adapting to lean and BIM will definitely seem a tedious task at first, but it’s positive results are unyielding. From a strategic per-spective, firms must make a serious com-mitment to the long-term use of BIM. Many

firms view the costs associated with rework, inefficiency and poor coordination as enough motivation

to consider integration of such a system. The opposing view is the considerable investment and operational costs associ-ated with BIM, which have a tendency to scare many contractors away from adop-tion. A strategic look allows firms to see that a serious commitment to BIM is needed. BIM is not a short-term system. Both Lean construction and BIM have great signifi-cance when dealing with prefabrication.

Prefab limits external factors that impact construction. The list of modularized and prefabricated systems is continually growing with: mechanical, electrical and plumbing systems; bathroom pods; hospi-tal headwalls; pipe racks; load-bearing wall systems; internal and exterior wall systems; and sectional bridges.

The competition is steep. With such low costs, innovation is the best option for suc-cess. Construction companies can help lower their costs by introducing these meth-ods that are here to stay. By becoming more efficient, companies can make lower bids that will increase business and success.

We Recommend: www.FMInet.com

Productivity and Efficiency – FMI

Lean construction, prefabrication/modularization and building information modeling (BIM) represent not only the current concepts available to contractors but also a glimpse of the future of construction.


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Primary Utilization Tactics of BIM

Clash detection andinterference management

31%

21%

19%

17%

6%

2%

3%

Shop prefabricationmanagement

Shop drawing review

Marketing/Salespresentation

Cost estimation

Safety analysisor management

Other

Total ResponseTotal Response

Lean is really just good managementpractices that have been relabeled and branded.

I understand Lean very well and see it as a practical way to improve productivity and/or

operational performance.

Lean is something that I hear a lot of people talking about, but I do not know much about it

or the potential to help us.

I have not heard about Lean or how is appliesto contractors.

Lean is a bunch of “smoke and mirrors” that somecontractors are using in their marketing materials.

42%

27%

16%

14%

1%

Perceptions of Lean:

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Monthly Leasing & Finance Index June New Business Vol-ume Up by 10 Percent Year-over-year, Up 29 Percent Month-to-month, Up 14 Percent Year-to-date

The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activ-ity for the $628 billion equipment finance sector, showed overall new business volume for June was $8 billion, up 9.5 percent from volume of $7.3 billion in the same period in 2011. Volume was up 29 percent from the previous month. Year-to-date cumulative new business volume increased 14.5 percent.

Receivables over 30 days were 2.4 percent, down from 2.7 percent in May, and down slightly when compared to the same period in 2011. Charge-offs increased to 0.6 percent in June, up from 0.5 percent the previous month, and down by 45.4 percent compared to the same period last year.

Credit approvals increased to 78.7 percent in June from 78.3 per-cent in May. Sixty-five percent of participating organizations reported submitting more transactions for approval during June, down from 75

percent in May. Finally, total headcount for equipment finance companies increased

slightly from the previous month, but declined 2.6 percent year over year. Supplemental data show that trucking and construction led the un-derperforming sectors, followed by small and medium-sized enterprises.

Separately, the Equipment Leasing & Finance Foundation’s Monthly Confidence Index (MCI-EFI) for July is 51.5, up from the June index of 48.5, and reflects continuing concern over external economic factors and regulatory and political uncertainty.

ELFA President and CEO William G. Sutton, CAE, said: “Despite recent reports of a softening economy, the level of capital investment by U.S. businesses—both large and small—continues to accelerate. In fact, the volume of equipment financed in June, as illustrated by the MLFI-25, surpasses that of any single month except for year-end December activity since the beginning of the Great Recession in 2008. We hope that, in spite of the factors adversely affecting economies over-seas, our businesses here at home will be able to continue to invest in productive assets.”

Equipment Leasing and Finance Association’sSurvey of Economic Activity


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The Department of Labor, Bureau of Labor Statistics recently released the latest unemploy-ment numbers for the country. Overall the unemployment rate increased to 8.3% despite an uptick in private sector hiring to 163,000 (which was partially off-set by a downward revision to June hiring totals from 80,000 to only 64,000). Again, the construction sector leads all other segments with an unemployment figure of 12.3% (some 994,000 jobless).

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Unemployment Numbers Stagnate in July

The unemployment rate has increased to 8.3%

42 straight months of unemployment above 8%

The real unemployment rate increased from 14.9% to 15.0%

150,000 people dropped out of the labor force while 163,000 entered

June’s job number was revised down from 80K to 64K

The number of unemployed people increased by 45,000 to 12.8 million

KEY TAKEAWAYS FROM TODAY’S JOBS REPORT:

Jan ‘12 Feb ‘12 Mar ‘12 Apr ‘12 May ‘12 Jun ‘12 Jul ‘12

Construction Unemployment 1,479 1,404 1,431 1,156 1,150 1,039 994

Percentage 17.7% 17.1% 17.2% 14.5% 14.2% 12.8% 12.3%

Overall Unemployment 8.3% 8.3% 8.2% 8.1% 8.2% 8.2% 8.3%by Percentage

Data Source: Table A-14, BLS, (figures are in 000s)

2012 Construction Employment/Unemployment vs. Overall Unemployment Statistics

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ONSTRUCTION FIRMS IN ALABAMA DON’T just do work within the confines of the state. Tracking and monitoring economic growth in states surrounding Alabama is a potential key to building business. Different states have differ-ing requirements, different economic develop-

ment strategies and different emphases. Tracking the growth presents challenges.

In the long construction boom years up until 2008, much out-of-state work for Alabama contractors was centered on high-rise residential structures along the Florida panhandle coast. Work was plentiful. Developers had no end of grandiose plans. Banks were happily lending money, add-ing to the bubble. With the Great Recession, the collapse of real estate markets and the uncertainties of the speed and depth of the recovery, construction firms began looking to adjacent states and a more diverse model of work projects.

There is much political talk about “job growth”. Job growth, absent from direct government stimulus in infrastructure building, occurs with economic growth. Only when firms feel like they have potential for growth and the financing to support

it, will they create jobs and hire to fill those positions.The Southeast has seen phenomenal levels of manufacturing

growth, now producing as many cars as the upper Midwest, which was long thought of as the “car capital” of America. Alabama and Kentucky together produce nearly as many cars as Michigan. In recent years, auto plant expansion plans have been announced for every brand in the Southeast.

In aerospace, the Gulf Coast corridor – with everything from the NASA’s Stennis Space Center and American Eurocopter in Mississippi to Boeing in Huntsville and Airbus engineering

in Mobile – shows potential to become an even larger aviation hotspot in future years.

The Southeast has right to work laws, meaning workers can’t be forced to support or join a union. Most states offer reason-able tax rates and the possibility of incentives, as well as tax credits. But on the negative side is the fact that much of the

Southeast

T R A C K I N GGrowthin the

E C O N O M I C P R O S P E C T S F O R T H E

S O U T H E A S T B U O Y C O N S T R U C T O R ’ S H O P E S

by HUGH J. RUSHING

CThe Southeast has seen phenomenal levels of manufacturing growth, now producing as many cars as the upper Midwest, which was long thought of as the “car capital” of America.


Southeast doesn’t prepare its citizens for semi-skilled positions. High school gradua-tion rates are an embarrassment. However, states are stepping up with specific training needed to attract qualified applicants.

Economic growth often crosses or ignores state boundaries. Kia’s plant in West Point, Georgia shares suppli-ers with Hyundai in Montgomery. Volk-swagon in Tennessee draws parts and workers from Georgia and Alabama as well as Tennessee. An expanded plant in Pulaski, Ten-nessee called Mag-neti Marelli, draws workers from two states and sup-plies auto manu-facturers in four.

Most of the Southeast’s indus-trial jobs lost over the last decades were in low skill or, at most, semi-skilled trades. Cut and sew assembly and weaving of textiles were the mainstays of smaller Southeast-ern towns. Newer industrial expansion pays more. Typically hourly vs. cut and sew’s piece rate comes with more benefits and security but also requires higher skills and training. Functional illiteracy and the absence of a high school diploma are pre-dictors of who won’t receive job offers.

The past decade has produced direct foreign investment in U.S. as the fourth highest level in history, according to government statistics. In 2010 alone, foreign investment in the U.S. rose 49%, while falling in Europe and other devel-oped nations. The biggest investors are from Europe, Japan and Canada. U.S. demographics contrast strongly with Korea, Japan and Germany, all coun-tries aging more rapidly than the US. Experts say that investors are loath to invest within China due to the govern-ment’s authoritarian nature. Rising wage demands in China threaten its position as the low-cost producer of many con-sumer goods. Some economists predict that Mexico-based labor will soon be

more economical than China’s.There’s even, particularly in resort

areas, a real estate boom with foreign buyers seeking to buy in at the bottom of the market. Offshore interests are also investing in energy sector as oil prices remain high enough to make prospective drilling for oil and gas produce a posi-tive return. European regulations make shale gas drilling a suspect proposition, whereas in the U.S. prospects are much easier to turn into producing fields.

A National Chamber of Commerce study has found that states that boost exports, foster innovation, provide business with certainty and reasonable taxes, insist on educational excellence and prioritize infrastructure are leading in job creation and economic growth. “The federal government has some-thing to learn from these enterprising states,” said U.S. Chamber President and CEO Thomas J. Donohue. “If you want jobs and growth, you need to cre-ate an environment where private-sector businesses, entrepreneurs and capital are welcome and can grow and thrive.”

Here’s a look at some of the states sur-rounding Alabama and their economic growth prospects:

MISSISSIPPIA state that has often trailed Alabama,

Mississippi, is enjoying a run of indus-trial expansion in recent years. Over $377 million in new investment since the beginning of 2012 is adding to the $3.1 billion in new projects announced last year. The largest is a $1.4 billion

expansion of the Chevron plant in Pas-cagoula. Severstal, a Russian steel maker spent $550-million in Columbus on an expansion of its mini mill which supplies flat rolled products to automotive stamp-ers. A similar amount went for a pipe operation for Schulz Extruded at Tunica, which supplies the oil and gas industry. The state is putting in a $570-million upgrade of its Gulfport port facilities. Perhaps surprisingly, Mississippi’s major export in 2011 was oil, accounting for

almost a quarter of its exports. An economic outlook published this spring by the Mis-sissippi Institution of Higher Educa-tion System pre-dicts Mississippi won’t reach the level of its payroll employment prior to the recession until 2016.

GEORGIADean Robert Sumichrast of the Terry

College of Business at the University of Georgia, in a speech earlier this year, reported that Georgia lost 360,000 jobs during the recession. “We must replace real estate development with other job generating economic activities. Too much of Georgia’s growth came to depend on a never-ending cycle of in-migration and real estate development which, after forty years, appears to have run its course,” said Sumichrast. “The population growth driver stopped work-ing during the Great Recession, and we should not make major investments to reinvigorate it.”

Baxter International recently decided to build its largest U.S. plasma process-ing plant east of Atlanta at Social Cir-cle with a cost of $1-billion. Like the recently announced Caterpillar plant near Athens, Baxter’s announcement promises thousands of more skilled, higher paying jobs, according to Rajeev Dhawan of the Georgia Economic Fore-

A National Chamber of Commerce study has found that states that boost exports, foster innovation, provide business with certainty and reasonable taxes, insist on educational excellence and prioritize infrastructure are leading in job creation and economic growth.


casting Center. “This is what I call high-tech manufacturing, which is even better than the durable goods kind. Caterpil-lar’s future will be determined by world grain prices and China’s health, and the Baxter plant will be immune to that.”

Georgia is pumping nearly $200-mil-lion into the modernization of its Port of Savannah, recognition that Georgia has identified access to water as a challenge for future economic growth. The state has recently enacted a broad array of tax cuts to promote a better business climate. Elimination of taxes on energy for manu-facturing, sales tax holidays to support retailers and reformation of tax incen-tives for agriculture have been approved.

TENNESSEEThe Southern state which started the

automotive assembly move to the area, with Saturn’s Spring Hill facility and Nis-san at Smyrna, has seen the reopening of the Spring Hill plant after major modi-fications at a cost of $61 million which turned it into a flexible manufacturing facility employing 700.

Tennessee is also the site of the Volkswagen Assembly plant which has opening labor costs of some $27 an hour, comparable with those of Kia in Georgia and Hyundai in Montgomery, and roughly half that of Midwest auto firms. It’s the firm’s second foray into the U.S., following the closure in 1988 of a plant in New Stanton, Pennsylvania. For the third straight year, the state has

been named number one for automo-tive manufacturing strength by Business Facilities magazine, an economic devel-opment publication.

The above-mentioned Magneti Marelli’s expansion at Pulaski will create some 800 news jobs for its $53.7-million investment for automotive lighting systems.

LOUISIANALouisiana has led the way in export

growth for the U.S., mainly on its strength in the oil and gas field. Addi-tionally, the state was ranked number 2 in income growth by the National Chamber Foundation. Chief Execu-tive’s best/worst states for business has ranked Louisiana at 13th, up 32 spots in the past four years. Youthful Republican

Caption Goes Here Growth in the Southeatern States.

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Governor Bobby Jindal has pushed for more business friendly policies in the state.

With a foundation in the extractive industries, Louisiana has profited from high oil prices for its exports. Additionally, Dyno Nobel is studying an $800 million ammonia plant expan-sion in Jefferson Parish, adjacent to New Orleans, which could produce as many as 500 direct and indirect jobs, the Louisiana Economic Development office reports. A $120-million plant was announced in April, which will produce an additive for latex paints and will create more jobs for Plaquemine Parish, south of New Orleans

A Coast Guard order for up to 500 boats has seen an expan-sion of Metal Shark Boats in Jeanerette. The seven year project and a nearly $2 million capital investment will create more than 100 new jobs. International Paper is putting $44 million in capital investment with upgrades for its Bogalusa mill, which will help the plant keep 411 jobs.

All of Louisiana’s new plants and expansions aren’t in manu-facturing, however. Earlier this year, Sutherland Global Ser-vices, which provides business process outsourcing, cranked up its ninth facility in the U.S. at Alexandria, which will pro-duce 600 new positions.

Links to Economic Development News for Southeastern States:

GEORGIA: www.georgia.org

TENNESSEE: www.tn.gov/ecd

MISSISSIPPI: www.mississippi.org

LOUISIANA: http://tinyurl.com/79mrr5h

FLORIDA: http://tinyurl.com/c6omzym (Note Florida has a decentralized approach to economic development. The above site links to various local economic offices for various parts of the state).

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Top Ten Potential Construction Projects for Southeast

Project Title

Sasol GTL Facility

Resort World Miami

Washington Coal Fired Power Plant

Fruitville Road Mixed Use

Baxter International Mfg

Norcross Entertainment District

VA Medical Center

National Jazz Center

Atlanta Falcons Open Air Stadium

Palm Beach County Solid Waste Energy Facility

Location

Westlake, LA

Miami, FL

Sandersville, GA

Sarasota, FL

Social Circle, GA

Norcross, GA

New Orleans, LA

New Orleans, LA

Atlanta, GA

West Palm Beach, FL

Stage

Proposal

Masterplanning

Proposal

Proposal

Proposal

Proposal

Drawings

Masterplanning

Proposal

Design Development

Project Value

$4 billion

$3 billion

$2.1 billion

$1 billion

$1 billion

$1 billion

$845 million

$716 million

$700 million

$700 million

Source: Reed Construction Data

ED BACK & KEN FRIDLEYDr. Ed Back, director of construction engineering program and Dr. Ken Fridley, head of civil, construction and environmental engineering at the site of the fourth building on the Engineering and Science Quad.

written by HUGH J. RUSHING | photography by STEVEN DEVRIES

T H E U N I V E R S I T Y O F A L A B A M A ’ S

Construction Engineering Degree Program Continues Its Growth

ON THE MOVE

U Aof

Despite the recessionary times in which the construction industry finds itself, the six-year-old University of Alabama’s Construction Engineering program has thrived. Enrollment is growing, new buildings to support research and lab work are opening, graduates are finding meaningful jobs and interest in the degree-granting program that merges construction management and engineering is expanding.


36 AL CONSTRUCTION NEWS AUG/SEP 201236 AL CONSTRUCTION NEWS AUG/SEP 2012 photography by STEVEN DEVRIES

neers with cross training in both construction management as well as the engineering design element of the construction pro-cess. Historically, the combining of the design and execution dis-

ciplines hearkens back to the “master builder” concept that presided over the building of the great cathedrals of Europe.

Dr. Ed Back, director of the Construction Engineering and Management program, says students “get it” when it comes to construction engineering. “Incoming engineering students have a genuine interest in the construction industry because they can see the physical product in the built environment all around them. Freshman surveys have indicated that some two-thirds have an interest in construc-

tion.” Another reason for the program’s success is that word of employment success spreads quickly. “Students talk to each other, and construction management is a field with many opportunities.” Thirdly, Back says graduates of the UA Construction Engineering program can take their Professional Engineer licenses after four

INCE THE PROGRAM’S BEGINNING IN 2006 it has grown from an enrollment of 25 to 122 at the beginning of the 2011-2012 school year. It’s the third largest program of its kind and the largest in the southeast.

Dr. Ken Fridley who heads the department of civil, construction and environmental engi-neering says he likes to think of the Univer-sity of Alabama College of Engineering as a

“brain magnet.”“I attribute the success of our construction

engineering program to our partnership with the construction industry. We, very early on, sat down with contractors and listened to what they needed as we designed the program to produce those skills in students that will be in demand,” Fridley says. With the confidence gained from that close collaboration, the construc-tion engineering program can produce opportunities for graduates in finding real-world employment when they graduate.

Industry told university officials that there was a need for engi-

“Incoming engineering students have a genuine interest in the construction industry because they can see the physical product in the built environment all around them. Freshman surveys have indicated that some two-thirds have an interest in construction.”

S

37AUG/SEP 2012 AL CONSTRUCTION NEWSphotography by STEVEN DEVRIES

years of progressively more responsible work experience. “The construction industry needs registered professional engineers, and our students come to those employers with their degree and with their passage of the Fundamentals of Engineering exam prior to graduation.”

A PART OF ENGINEERING SCHOOL GROWTHDr. Charles Karr, dean of the College of Engineering in Tusca-

loosa, points out that the entire college of engineering has been in a growth spurt. “We’ve doubled our enrollment in the past seven years by expanding our recruitment beyond the best and brightest students from Alabama to going after students from outside the state. The best way to reverse a brain drain is get kids acquainted with the advantages of Alabama when they are 18 and just starting their college careers.”

Along with enrollment growth has come new facilities. The South Engineering Research Center (SERC) opened its doors earlier this year. It is the first building dedicated solely to engineering since 1960 when H.M. Comer Hall was completed. The SERC’s focus is on engineered systems, and features some of the nation’s most

One of the most helpful classes that I took in college was Construction Scheduling. Working in an Assistant Project Manager’s role, I see the importance of the schedule on a daily basis. I was able to come into work and understand the different aspects of the schedule and how to implement a successful schedule. Our class at UA was taught by Dr. Ed Back, who with real world experience, was able to effectively relay the role of the schedule in the industry and understanding that the schedule is one of the main driving forces to projects in today’s economy.

Nick Woychak, Civil Engineer, Brasfield & Gorrie, LLC

UA Construction Engineering Graduates Talk of Their Experience

PREPARING STUDENTSDr. Derek Williamson (center) and Dr. Paul Ray (right)

ON THE SCENEDr. Ken Fridley in front of wall specimen prepared for testing. (Right) Dr. Ed Back inside large scale structures lab.

photography by STEVEN DEVRIES

advanced labs in terms of structural, engine, energy and electro-mechanical engineering. Designed by Davis Architects and built by Gary C. Wyatt General Contractor, LLC, the 175,000 square foot structure cost some $70 million, according to Dr. John M. Wiest, associate dean for research and graduate studies.“It’s the sort of structure where we can build and break things,

so that when they are built in the real world they won’t break,” Wiest laughs “…One of the three of the largest research labs is the Large Scale Structures, which supports the building’s theme of ‘engineering on display’,” Wiest says. “We’ve made it so people can look in,” he said. “There are windows with ballistic glass which allow even casual passersbys to see what we are up to.”

Wiest adds that the lab is intentionally designed to be as flexible as possible. “It requires looking at crystal balls to envision what the next fifty years might bring. We’ve made much of the testing equipment as movable as possible so that it can be reconfigured when necessary.”

“This lab is going to have a huge impact,” said Dr. Ken Fridley, professor and Department Head of Civil, Construction and Envi-ronmental Engineering. “Few labs with this capacity are right on a campus.”

The lab features an innovative hybrid testing system working in sync with the new 17-feet-by-17-feet uni-axial seismic simula-tor, or shake table. It will test up to two-story buildings with a full capacity of approximately 50,000 pounds.

Installed on a 32-inch concrete slab, which exceeds one million pounds, the shake table will move in one direction to replicate many of the world’s largest recorded earthquakes.

The hybrid testing system is unique in providing real-time theo-retical modeling coupled with physical seismic lab simulation as it is operating, and the feedback adjusts the simulation immediately. With the largest shake table in the Southeast, Fridley and others

Fully accredited since 2007. One of 12 construction engineering programs in the United States with as many as 8 more currently seeking accreditation.

Third largest construction engineering program in the United States.

Largest of just three construction engineering programs in the Southeast.

Enrollment has grown from 25 in 2006 to 122 in last year’s entering class.

Graduates over the past three years have a 95% placement rate. 75% are employed in the construction industry; 18% are attending graduate school.

AT A GLANCE

UA’s Bachelor of Science in Construction Engineering Program

Construction Engineering is about gaining the ability to manage both engineering and construction. There’s a thick red line between the two in the “real world” and for someone to understand the two is admired. After taking courses like Construction Safety, Construction Estimating and Scheduling, Engineering Economics, Legal Aspects of Engineering, Project Management and many base courses from the Civil Engineering side of things, I can confidently interact on all levels with the engineers, project controls personnel, upper management and craft in the field. And even though some courses came easier to me than others, all Construction Engineering professors seemed to bend over backwards to embed the leanings of each course to allow me to achieve the end product, the degree and ultimately the goal, a career in the degree of which I studied, Construction Engineering. Another thing this department stands out from among the rest is the mandated Summer Internship course. With this course, I was able to get my foot in the door with a company I never plan to leave.

Austin C. Williamson, Field Engineer/Area Superintendent, Jacobs Engineering

I really like the project controls aspect of the Construction Engineering Program at UA. I ended up landing a job with Jacobs Engineering as part of the program management team for the GSA in Washington. I use my coursework in scheduling, construction finance, and construction management in my work every day.

Jennifer Hetherington, Project Engineer, Jacobs Engineering

40 AL CONSTRUCTION NEWS AUG/SEP 2012 photography by STEVEN DEVRIES

are excited to debut this distinctive system that will dramatically improve earthquake-simulation research for buildings and struc-tural engineering as a whole.

PREPARING STUDENTS FOR REAL WORLD CHALLENGES

Construction engineering education is not carried on in a vacuum. Dr. Back says that there are significant interac-tions between faculty and industry as well as students and industry. “We have guest speakers to our classes, a high number of internships, employment co-op programs and we encourage our students to take advantage of these opportunities. It makes them better prepared when they do gradu-ate and enter the work force.” Back says that every student wanting an internship or a co-op position has been able to find one.

Students are actually living and learn-ing within a construction zone, Fridley reports. “We use the construction going on right here on campus as a connect between our student’s academic learning and real world experience.”

UA’s faculty is required to make research an important part of their academic life.

“We have many contracts which provide opportunities to interact with practitioners, both for the faculty and students,” Back observes. “We have a funded project with the Construction Industry Institute, which has a research advisory board with some 18 major corporations represented which enables our students to gain valuable real-world experience.”

PARTNERING WITH CONSTRUCTORS AND THEIR ASSOCIATIONS

Without the involvement of industry in their programs, neither Fridley nor Back believes the program could have achieved the success it has in the short time it has been up and running. A founding partners group was instrumental in focusing on what specific skill sets should be taught to under-graduates. Senior design projects are often judged by industry representatives, bring-ing a real world flavor to an important part of the student’s final year of school.

Ken Fridley points to side-by-side con-tact that students often have, which helps integrate their engineering education into a larger picture of the world outside the

The Large Scale Structures Lab features two 15-ton cranes, large hydraulic actuators for testing and reconfigurable reaction blocks into the million-pound-strong floor.

I believe that the Senior Design course I took really prepared me for the real world and was the most beneficial class that I took while at UA. It took everything that I learned from all of my classes and combined it. My team was given the task of designing an apartment complex. Our deliverables included demolition, grading, drainage and utility plans along with a baseline construction schedule and a preliminary cost estimate. That class was as real world as it gets because we had deadlines, had to make sure the deliverables where what was asked for and also made sure we delivered a quality product to our client, the professors.

Cody Moore, Construction Engineer, URS Corporation

Everyone who graduates from this program learns to look at problems as potential opportunities to further gain knowledge and experience. To name a few specifics, I have designed footings for mock ups that would normally have to be designed by an engineer. The project I am on is 100% BIM coordinated, and I manage the model as well as the coordination meetings with the subcontractors. I track all of our equipment rental costs and create projections for future costs. I perform quality control inspections on site and highlight any unwanted risks. I contribute to new LEAN construction ideas on ways we can perform the work more efficiently.

William Weeks, Project Engineer, Hoar Construction

Dr. Ed Back demonstrating UA research into innovate repair techniques for concrete rehabilitation.

DEAN CHARLES KARRwelcomes increasing numbers of incoming students to the construction engineering program each year.

43AUG/SEP 2012 AL CONSTRUCTION NEWSphotography by STEVEN DEVRIES

Ever since trustees instructed the faculty to teach engineering to help the expanding railroad industry 175 years ago, the University of Alabama has strived to meet the needs of industry. With that same spirit, the College of Engineering began a construction engi-neering program in 2006 in response to the needs of the construction industry, and our success would not be possible without your support.

We set out to provide the construction industry professionals with a background of engineering design paired with construction management and business to provide more effective, efficient, safe and sustainable solutions to projects. We hope you have found our graduates bridge the gap between design and construction on your companies’ job sites.

UA’s Construction Engineering Founding Partners Program was formed when the pro-gram was established through dedicated financial support of nearly $1.5 million by more than 16 individuals and corporations. The support has continued not just financially, but also in partnering with our faculty and students to help shape our teaching and research. Also, your companies and your peers around the country are hiring our construction engi-neering graduates, finding they are more than capable for the challenges given to them.

The College of Engineering fully supports construction engineering, and we look forward to working with your firms in the years ahead. Thank you for your support, advice and encouragement.

Sincerely,Charles L. Karr, Ph.D., Dean

University. “We want our students to have a wide-world view of how engineering interacts with manufacturing for instance. Students need to know if they work on the design of an automotive assembly plant that the purpose of the plant is to assemble autos in the most efficient manner possible. It goes beyond simple designing and con-structing buildings.”

Dr. Back also reports that the program has received support from industry associa-tions such as ABC (the school has a student chapter of ABC), has garnered significant research grants from industries and has had its research published and publicized by major journals and publications. “All of this helps us get the word out about what we are doing to prepare the next generation of great construction engineers here at the university,” said Dr. Back.

A BRIGHT FUTURE FOR CONSTRUCTION ENGINEERING GRADUATES

The University has a good track record in placing its Construction Engineering graduates in a number of fields. Dr. Back

From the Dean

points out that UA graduates are currently working in oil and gas, power generation, manufacturing, infrastructure, transpor-tation and the commercial construction fields. “There’s a wide range of sizes of firms our graduates are working in—from small to large.”

Back explains that even within a tough economic environment there are still plenty of opportunities. “We have to focus on our nation’s infrastructure, sustainable solutions for our built environment, power generation, water delivery, safe and afford-able housing and many others. Whether we argue that these should be funded by government or public/private partner-ships, there are still issues which we must address. I see the glass half-full rather than half empty.”

Ken Fridley points out that some stu-dents may not have as many offers as they might have had before the Great Recession.

“It makes our students more determined to be problem solvers and be serious about their efforts. They recognize that you have to be on top of your game in times like

these, and we are encouraging them in this.”As an example, Back points out that the

University joined a group of ten programs in Construction Engineering when its pro-gram received its accreditation. “Now there are 12 programs in place and five more in development. Obviously, this is a field in which there’s a demand for skilled and tal-ented young people.”

In the past engineering was seen as a par-ticularly technical vocational field, Fridley points out. “That’s not what the profession is calling for now. Engineers in the future are going to need broad exposure to other business, legal and communication educa-tion. The foundation is technical, of course, but there are many more features which are required and which we bring into our program to make our students better engi-neers and employees and citizens.”

To our partners in construction engineering,

For years manufacturing and service industries have increased their levels of productivity,

quality, and profitability by applying LEAN principles.

Currently, the construction industry is going through a revolution due to the economic

climate. Profit margins for all companies are being reduced to the point that the risk/

reward ratio has no relationship to the project cost.

In order to make this kind of progress, organizations have to start understanding the Lean

Principles and apply them to their businesses. The mechanics of lean systems (kaizen,

pull systems, flexible cells, and so on) are simple in concept and thus appear easy to

implement. Yet, few organizations are able to implement “lean” the first time they try.

visit www.abc-alabama.org/lean.aspx to learn more, and sign up your team to join us.

ABC of Alabama & Lean Business Network present:

20-course package:20 courses over one-year period – 2 hour sessions2 employees per company – shared experience$2500 per companyMax of 25 companies – Min 15 companies

20-course package:

Single Class Session (intro course):Single session, 2 hours, offered multiple timesOffered at scheduled times statewide$75 per personMax of 60 attendees – Min 20 attendees

Single Class Session (intro course):

10-course package:10 courses over one-year period – 2 hour sessions2 employees per company – shared experience$1500 per companyMax of 25 companies – Min 15 companies

10-course package:

“I am truly confident that the only way that we can thrive in the future is to find ways to eliminate waste of labor, time and materials.”

– Richard Drennen

Huie, Fernambucq& Stewart LLP

p. 46 p. 47 p. 48 p. 49

p. 51-52p. 51p. 50

Sellers, RichardsonHolman & West

LLP

Wallace Jordan, Ratliff & Brandt

LLC

Burr & Forman LLP

Ogletree Deakins PC Boult Cummings LLPPorterfield, Harper, Mills Motlow & Ireland, P.A.

• D I G E S T •

FINANCIALLEGAL

&



THIS YEAR THE ALABAMA legislature enacted Act 2012-225 to address liability concerns of con-

tractors and road builders that contract with the state or other public entities for road construction. The law makes great strides to ensure road builders will not be held responsible for the state’s engineering and design decisions. The law codifies the contractor’s responsibility to follow plans and specifications developed by engineers unless doing so will result in an obviously dangerous condition. If the contractor fails to follow the plans and specifications, or if it creates a latent defect, then the contractor can be responsible for damages resulting from those conditions.

Importantly, the law removes contrac-tors’ liability for conditions that arise from decisions within the engineering discretion of the state and for issues that lie out-side of the scope of the project. For example, the law addresses allegations that a contractor should have made improve-ments to the shoulder of a roadway even though the project did not include work related to the shoulder.

The new law may require changes to con-tractors’ business practices as they relate to situations in which a contractor discov-ers a dangerous condition or issues that are not specifically addressed by the plans. The statute permits a contractor to request, in writing, direction as to the proper response or approach to these situations from the head engineer. The contractor is then not responsible for the state’s decision as to how to respond to the situation.

Finally, a number of contractors have expressed frustration in defending claims

that are proximately caused by the state or county’s failure to maintain the roadway following construction. The law removes contractors’ liability for claims that are proximately caused by the county or state’s failure to fulfill their own statutory and com-mon law responsibilities.

Along with the revised statute of repose, passed in 2011, the contracting community hopes these new laws will help limit claims against road builders for issues in which they are not responsible.

If you have any questions about how the new law affects your company’s potential liability, please feel free to contact us with any questions.

Importantly, the law removes contractors’ liability for conditions that arise from deci-sions within the engineering discretion of the state and for issues that lie outside of the scope of the project. For example, the law addresses allegations that a contractor should have made improvements to the shoulder of a roadway even though the project did not include work related to the shoulder.

Jeremy Gaddy is an associate with Huie, Fer-nambucq & Stewart, in Birmingham. His practice includes cases involving construction issues as well as other areas of general civil litigation and product liability. He holds a B.S. degree in Industrial Engineering from Georgia Tech and a J.D. degree from the University of Alabama.

Birmingham Office2801 Highway 280 South, Suite 200

Birmingham, Alabama 35223

Phone: 205.251.1193Fax: 205.251.1256

Reduction of Liability Under

New Road Builder Statute

[email protected]

Joe Duncan is a partner with Huie, Fernambucq & Stewart, in Birmingham. His litigation practice includes general liability, coverage and liability issues associated with all phases of construction at both the trial and appellate court levels. He holds a B.A. degree from Auburn University and a J.D. degree from the University of Alabama. Joe is AV rated by Martindale-Hubbell.

[email protected]


ON MAY 3, 2012 ALABAMA SENATE Bill 459 was signed into law by Governor Bentley with hopes of improving the ad-ministrative burden for filing sales, use and rental taxes in the state of Alabama. In ad-dition to creating filing efficiencies for tax-payers, the state, cities, and counties could see increased compliance making this bill a win/win for taxing authorities and the busi-ness community.

EXISTING FILING REQUIREMENTSAlabama’s existing filing requirements

require businesses with nexus in multiple cities and counties to file separate sales, use, and rental tax returns for each individual location, with exception for those munici-palities which elected to be administered by the ADOR or by a contract auditing firm. Alabama is currently the only state which allows each city and county to elect to ad-minister and collect its own sales, use or rental tax. Note, although the new legisla-tion will allow for streamlined filing of sales, use, and rental taxes; taxpayers may con-tinue filing these returns under the existing requirements.

STREAMLINED SALES TAX (SST)Under the new law the Alabama Depart-

ment of Revenue must develop and make available a system that allows any taxpayer to file and make payments for all of its Ala-bama state, city, or municipal sales, use, or rental tax returns through an electronic single point of filing program. The system will be known as the Optional Network Elec-tion for Single Point Online Transactions

also known as the “ONE SPOT” system. The ONE SPOT system shall allow for sales and use tax, or lease and rental tax return filing and tax remittance only, and may not pro-vide for the administration or enforcement of local sales and use taxes. The electronic tax returns must contain all information included in the standard multiple jurisdic-tional tax returns developed pursuant to Section 11-51-210, Code of Alabama 1975.

According to the new legislation the ONE SPOT system must be made available for use by any taxpayer for tax periods after September 30, 2013, provided the taxpayer complies with this act and any rules pro-mulgated by the department for the admin-istration of the system.

Matt serves as a Senior Tax Manager at the firm. He received his Bachelor’s degree from the University of Tennessee-Chattanooga and Master of Accountancy from Auburn University. Matt has worked extensively with contractors, including performing technical reviews of many of the firm’s construction clients’ tax returns and is responsible for internal training programs related to taxation of construction contractors. He is a licensed CPA in Alabama and is a member of the American Institute of CPAs and the Ala-bama Society of CPAs, Associated Builders and Contractors, and is also a board member of the Construction Financial Management Association.

Birmingham Office216 Summit Boulevard, Suite 300

Birmingham, AL 35243

Phone: (205) 278-0001Fax: (205) 278-0003

Alabama Makes Significant Progress in

Simplifying Filing of Sales Tax

Returns

│[email protected]@srhwcpa.com

John is a Tax Partner at the firm and serves as the relationship partner on many of the firm’s con-struction contractor audit and tax engagements. John is a graduate of Birmingham Southern College with a degree in Business Administration and of the University of Alabama with a Master’s Degree in Accounting. He is a licensed CPA in Alabama and is a member of the American Insti-tute of CPAs, the Alabama Society of CPAs, The American Subcontractors Association of Alabama, and Associated Builders and Contractors.

We Recommend:http://tinyurl.com/bom7epa


ALABAMA’S LEGISLATURE AMENDED Ala. Code § 39-2-12 concerning public-works contracts to (a) prohibit awarding authorities from increasing the time for pay-ment for completed work beyond 45 days; (b) add interest to amounts approved and unpaid; (c) require certification of availabil-ity of funds by authorities; and (d) provide recovery of attorneys’ fees and expenses as-sociated with nonpayment.

Previously, partial payments were required as work progressed “at the end of each calendar month, or as soon thereafter as practicable, on the estimates made and approved by the awarding authority.” This allowed indefinite delay for payments not determined “practicable.” The amend-ment deleted the “practicable” language and requires partial payments within 45 days after the authority accepts that the estimate and the terms providing for partial payments have been fulfilled. If authorities don’t pay within 45 days, contractors may collect interest at the rate for taxes underpayments, currently about 3%. The amendment prohibits con-tractually extending the 45-day window. This doesn’t apply to contracts administered by the Alabama Building Commission.

The amendment still requires present-ing authorities with proof of advertisement before the final payment becomes due, but now provides that after presentment, the terms of payment may not be amended. Payments after completion must be made within 45 days (previously 40 days), but

Alabama Legislature

Amends Law Requiring Timely

Payment of Public-Works

Contracts

they are now subject to the same interest requirements as partial payments.

The amendment also allows recovery of costs of collection of nonpayment. Con-tractors may sue the party obligated for the payment claimed and seek amounts due, interest, attorneys’ fees, court costs, and expenses.

The amendment halves the time for contractors to return overpayments to the Alabama Department of Transpor-tation (“DOT”) or an associated county awarding authority. Previously, a contrac-tor had 120 days after notice to remit the overpayment. The amendment cuts this to 60 days. Failure to remit overpayments within 60 days results in disqualification from bidding on DOT contracts and inter-est on overpayments.

Finally, the amendment requires con-tracts to state whether the source of funds

Left to Right: Michael L. Jackson, Thomas A. McKnight Jr., Cecil H. “Coy” McCoy, Jr., Oscar M. Price III, R.Dale Wallace, Jr., Larry S. Logsdon

Birmingham OfficeFirst Commercial Bank Building

800 Shades Creek Parkway, Suite 400Birmingham, AL 35209

Phone: (205) 870-0555 Fax: (205) 871-7534

The amendment halves the time for contractors to return overpayments to the Alabama Department of Transportation (“DOT”) or an associated county awarding authority.

is a source that won’t be available until af-ter the execution of the contract (such as a grant, award, or reimbursement from a governmental entity).


NOW THAT THE SUPREME COURT has upheld the constitutionality of the Pa-tient Protection and Affordable Care Act (often referred to as “Health Care Reform” or “Obamacare”), employers offering group health plan coverage to their employees must take affirmative steps to ensure com-pliance with the Act.

NOW IN EFFECT Many provisions of the Act are already in

effect, including: the extension coverage to adult children under age 26, the elimina-tion of lifetime limits, the restriction on an-nual limits, the elimination of pre-existing condition exclusions for children under age 19, and the external appeals process. Noth-ing in the Supreme Court’s decision affects these provisions and they continue to apply.

2014 AND BEYOND Many of the most discussed and contro-

versial aspects of Health Care Reform come into effect in 2014. Much attention has fo-cused on the “pay or play” tax, will become effective January 1, 2014. This generally requires employers with 50 or more em-ployees (or “full time equivalents”) to pro-vided specified minimum levels of health plan coverage within certain cost param-eters to their employees or pay an excise tax. Other new provisions include elimina-tion of the pre-existing condition exclusion for all participants and maximum waiting period for new enrollees of 90 days. In 2018, “Cadillac” plans (plans deemed to provide excess value) will be subject to a 40% excise tax on the excess value of the coverage.

During the next few months, employers will want to review existing plans to confirm they are complying with the rules now in effect, and focus on what needs to be done to prepare for the future.

Health Care Reform UpdateJust Around the Corner: Several components of the Act will become effective later this year or in early 2013.

A Summary of Benefits and Coverage must be pro-vided to each plan participant, and those eligible to enroll, for open enrollment periods beginning on or after September 23, 2012.

All non-grandfathered group health plans must cover comprehensive women’s preventive services with no cost sharing for plan years beginning on or after August 1, 2012.

All group health plans must pay a per participant fee for plan years ending on or after October 1, 2012. The fee starts at $1 per participant for the first year and increases in subsequent years.

Contributions to flexible spending accounts must be capped at $2,500 per year beginning January 1, 2013).

The value of group health insurance must be reported on Form W-2. This applies for W-2 covering 2012, which are issued to employees in 2013.

Employers must provide notices regarding the avail-ability of insurance exchanges in March of 2013.

│[email protected]

Logan Hinkle is a partner in Burr & Forman LLP’s Business section with a concentration in em-ployee benefits, executive compensation, ERISA, Health Care Reform, tax exempt entities, and general tax matters. His clients include numer-ous construction and manufacturing clients in Alabama and throughout the United States.

Birmingham Office420 North 20th Street, Suite 3400

Birminghman, AL 35203800-GET-BURR

Mobile OfficeRSA Tower, 11 North Water Street, Suite 22200

Mobile, AL 36602800-346-5106

Montgomery OfficeRSA Tower, 201 Monroe Street, Suite 1950

Montgomery, AL 36104877-636-0422

THE BEASON-HAMMON ALABAMA Taxpayer and Citizen Protection Act, or the Alabama Immigration Act, went into effect on January 1, 2012. The future of much of the Act is uncertain due to ongoing judicial review, but the law’s prohibition on hiring or employing unauthorized workers, as well as its E-Verify requirements, remain intact. While the Act still requires businesses to use E-Verify, the state legislature recently amended the Act to ease the burden on state contractors and subcontractors.

Originally, the Act required that state contractors must provide a sworn affidavit of compliance and confirmation that the contractor uses E-Verify, and that state contractors give notice of Alabama’s im-migration requirements to its subcontrac-tors. Subcontractors of any state contract tier were required to prepare and submit upon request similar compliance affidavits (and likewise inform their subcontractors of the law’s requirements). While this seemed straight-forward enough, the Act failed to define what constituted a “contract.” This quickly led to absurd results, and businesses never previously considered “state contractors” were treated as such due to the most minute business dealings with state funded organizations.

The recent amendments, signed into law on May 18, 2012, eliminate the affidavit re-quirement. Instead, state contractors and subcontractors are not to knowingly hire or employ unauthorized aliens, and state contractors must provide documentation of E-Verify registration to the applicable state or state-funded agency. To qualify, a “con-tract” must have been awarded by a state or state-funded agency through a competitive bidding process, and must include language confirming that contracting parties comply with federal immigration law and the Act. The amendments also specify that, to be considered a subcontractor under the Act, a

person or business must actually have been awarded a portion of an existing contract with a state-funded entity, and that “col-lateral persons or business entities hired by the subcontractor” are not considered subcontractors under the Act. Penalties include a wide array of business license re-vocation, but businesses will not be liable for the hiring of any unauthorized worker if the business has enrolled in E-Verify and used it to verify the work authorization of that employee.

Mr. Palmer is an experienced litigator spe-cializing in both employment litigation and general civil litigation in state and federal courts. His interest in litigation began early in his legal career when as a law student at Vanderbilt University, Mr. Palmer won the Har-lan Dodson Moot Court Competition and was appointed to the position of Associate Justice of Vanderbilt’s Moot Court Board.

Birmingham OfficeOne Federal Place

1819 5th Avenue North, Suite 1000Birmingham, AL 35203Office: 205-328-1900 Fax: 205-328-6000

Alabama Immigration Act

[email protected]@ogletreedeakins.com

Ms. Hatfield graduated cum laude from the University of Alabama School of Law in May 2002. While at the University of Alabama, she was a senior editor of the Alabama Law Review, and was an oralist for the Phillip C. Jessup International Moot Court team. Ms. Hatfield joined Ogletree Deakins in August 2003, and her practice focuses on general labor and employ-ment litigation.

…the Act failed to define what constituted a “contract.” This quickly led to absurd results, and businesses never previously considered “state contractors” were treated as such due to the most minute business dealings with state funded organizations.


[email protected]

OVERVIEWAlabama’s Prompt Pay Act provides a

mechanism by which contractors should be paid promptly for work that is performed and if they are not paid promptly, allows for the possible recovery of attorneys’ fees and interest.

PROMPT PAY ACTAla. Code § 8-29-3 provides that when a

contractor performed pursuant to a con-tract and submits a pay request or an in-voice for materials to the owner, the owner shall pay the contractor within 30 days after receipt of the pay request or invoice unless otherwise agreement to in the contract. If the owner does not make payment in com-pliance with this chapter, the owner shall be obligated to pay the contractor interest at the rate of one percent per month (12% per annum) on the unpaid balance due.

The Prompt Pay Act also provides retain-age from an owner is due no later than 60 days after completion of the contractor’s work, or substantial completion, whichever comes first. In turn, a contractor is obligat-ed to also promptly pay the sub-contractor within seven days from payment by the owner, unless the parties have negotiated otherwise.

An owner does have the right to dispute the payment request; however it must be in writing within 15 days from the disputed pay request. A contractor, sub-contractor, and sub-subcontractor are required to pro-vide written notice within five days from a disputed pay request.

INTEREST AND ATTORNEYS’ FEESOne of the most powerful and effective

tools in the Prompt Pay Act is the ability for the party owed money to collect interest and attorneys’ fees if a civil action is filed to collect money owed.

CONCLUSIONAlabama’s Prompt Pay Act was written to

assure that all parties to the construction contract are treated fairly and can provide for possible attorneys’ fees and interest against those who do not comply.

Heath graduated Cum Laude from the University of Alabama with a B.A. in Criminal Justice. He received his Masters at UA as well. Heath gradu-ated from Cumberland School of Law, Samford University with a certificate of merit. Heath as a partner is fully devoted to the practice of litigation. His practice areas include: automo-bile, collections, employment law, insurance defense litigation, premises liability and workers’ compensation.

Birmingham Office22 Inverness Center Parkway, Suite 600

Birmingham, Alabama 35242Phone: 205-980-5000Fax: 205-980-5001

Promt Payment Act - The Basics.

A Tool For Contractors

[email protected]@phm-law.com

Ireland attended undergraduate school at Auburn University. Later, he received his Law degree from Cumberland School of Law, Samford University. Ireland was an active student at both universities. He graduated Cum Laude from Auburn and Magna Cum Laude from Samford. Ireland’s practice areas include: class action defense, construction defect litigation, environ-mental law, legal malpractice, prison healthcare and products liability. As a partner of Porterfield, Harper, Mills & Motlow, Ireland works entirely with litigation and has achieved great success. He has received the AV rating, which is a signifi-cant rating accomplishment and a testament to the fact that a lawyer’s peers rank him or her at the highest level of professional excellence.

PORTERFIELDHARPER MILLS MOTLOW & IRELAND PA



Private owners have a wide variety of methods of contracting for design and en-gineering services. Depending upon the amount and timing of available funding, the uniqueness of the project, the schedule de-mands for the project and a number of other factors, private owners can use a number of different “project delivery methods”. In ad-dition to the traditional “design-bid-build” method, projects may be delivered using de-sign/build or construction manager at risk methods or even more esoteric methods such as design/build/operate, design/build/lease or design/build/finance. Recently, there has been an accelerating use of the collaborative method known as integrated project delivery or “IPD”.

Traditionally, delivery meth-ods for public projects were lim-ited by law exclusively to design/bid/build. See, e.g., Ala. Code § 39-2-1, et seq. (Alabama’s Pub-lic Works Competitive Bid Law).The perception was that compet-itive sealed bidding on a design/bid/build basis was the only “fair” way to allocate limited public funding for construc-tion services. Many public owners became increasingly dissatisfied with this restric-tion and lawmakers saw potential benefits to the public being lost because of the un-availability of alternative project delivery methods on public projects. Consequently in the 1990’s, the federal government began experimenting with alternative project de-livery methods primarily on a design/build basis. Today, the federal government per-forms a substantial percentage of construc-tion projects on a design/build basis.

A majority of the states have followed

the trend that started in the private sector and in federal contracting and have passed enabling legislation to allow state, county and local public owners to use a variety of the alternative project delivery methods. In particular, design/build and construction manager at risk methods are being used on public projects in what is now a majority of the states. Because of the limited avail-ability of public funds brought on by the recession, other states have begun to use alternative project delivery methods to ob-tain private sector financing for public proj-ects through the use of design/build/finance methods or various types of public/private partnerships sometimes referred to as “P3” or “PPP” projects.

To date, with only very narrow excep-tions, Alabama has yet to join the trend. Owners, contractors, subcontractors and other construction industry groups in Ala-bama, including the Associated Builders and Contractors, have been watching the trends in other states carefully and have begun to investigate and consider whether Alabama could benefit from having alter-native project delivery methods available on public projects. Many believe that the availability of alternative methods will lead

to more public projects and investment in infrastructure all of which should lead to increased economic development. The trend shows no signs of weakening, so do not be surprised if future legislative ses-sions include legislation proposing alterna-tive project delivery methods on Alabama public projects.

Alternative Project Delivery

Methods: What’s Next for

Alabama?

[email protected]

David Pugh is a partner in Bradey Arant’s construction and procurement practice group. He is also a member of the firm’s litigation practice group and the patents, trademarks and copyrights practice group. David has represented owners, general contractors, subcontractors, engineers, architects, insurance companies and sureties throughout Alabama and throughout The United States.

Birmingham OfficeOne Federal Place

1819 Fifth Avenue NorthBirmingham, AL 35203

P: 205.521.8000F: 205.521.8800

The perception was that competitive sealed bidding on a design/bid/build basis was the only “fair” way to allocate limited public funding for construction services. Many public owners became increasingly dissatisfied with this restriction and lawmakers saw potential benefits to the public being lost because of the unavailability of alternative project delivery methods on public projects.

[email protected]

A HISTORY OF MOVING ALABAMA FORWARD.The Dunn companies have proudly served Alabama and the Southeast since 1878. Our dedication to growth and progress spans five generations of family leadership. From road building to construction to real estate, we continue to enhance our services. And we approach each project with a commitment not only to our client, but also to the generations to come. dunn-companies.com

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News & NotesA S S O C I A T E D B U I L D E R S & C O N T R A C T O R S



THERE IS LITTLE QUESTION that our nation’s economy contin-ues to struggle, the question re-mains, why? Unemployment has been above eight percent for 41 consecutive months, the longest

stretch of unemployment since the Great Depression. Since 2009 this Administration has heaped on more bureaucratic red tape, more burdensome regulations, more com-plex and overreaching laws and provided more uncertainty regarding the tax code. Together these factors have created a per-fect storm. A storm that’s drowning job cre-ators and keeping them from hiring at a time when we need jobs more than ever before.

This economic downtown has hurt nearly every sector and industry doing business in

the United States. However, few industries have felt the effects and few industries want to provide sustainable, well-paying jobs for American workers more than the construc-tion contractors that build the American economy one job at a time.

Today’s economic storm continues to rain down on job creators. While these small businesses are eager to help America’s economy grow jobs and once again prosper, another storm front is moving in and there is no relief in sight, which means there are no new jobs in sight for an industry that has lost over 1.9 million jobs in just four years.

After the rain, the thunder rolls in. Like thunder, the current Administration is un-predictable and does things with a bang. In 2011 alone, 32 major regulations were imple-

mented, several of which have a direct impact on the construction industry and come with a price tag of $10 billion annually.

Bureaucratic red tape and ever-changing complex regulatory environment in other industries are indirectly impacting job cre-ators. With passage of the Dodd-Frank law the banking and financial services indus-tries faces uncertainty that has locked cred-it markets and access to capital. Many ABC member firms have viable, low-risk projects or contracts that simply need funding in order to work. However overregulation in the banking sector has made qualified busi-nesses with a great borrowing track record, a risk banks aren’t willing to take.

For the construction industry, the thun-der that is unjustified and unnecessary bureaucratic red tape that translates to increased costs, which if a project can get off the ground, are inevitably passed to the consumer and ultimately impact their abil-ity to hire and expand.

With thunder, comes lightening. In a flash the passage of ObamaCare ensured the storm continued for these companies. The law’s 2,000 plus pages of new taxes and complex regulations, mean small businesses must devote limited dollars and time to compliance and paperwork rather than new jobs.

Unequivocally, the federal government should not be making individuals or busi-nesses health care decisions. Instead we need common sense, step-by-step reforms that include greater choice and affordabil-ity and allow private insurers to compete for business.

Instead of helping employers provide quality, affordable health care coverage to employees the new taxes, federal mandates and confusing regulatory provisions asso-ciated with ObamaCare have become an-other burden affecting ABC member com-panies’ ability to hire. Like gale force winds, America’s tax code has the ability to blow

One Industry’s Struggle to Create Jobsby CONGRESSMAN ROBERT ADERHOLT

A Perfect Storm

News & Notes

Rep. Robert Aderholt (R-Ala.) represents Alabama’s Fourth Congressional District and serves as chairman of the Subcommittee on Homeland Security on the House Appropriations Committee.


an industry in one direction or another. Since the last overhaul of the tax code in 1986, tens of thousands of pages of new regulations, loopholes and preferences have been added, amended or omitted creating great uncertainty and making it virtually impossible for ABC member firms to plan beyond the near-term.

Further, the President recently announced his proposal to raise taxes on many of America’s job creators. According to the nonpar-tisan Congressional Budget Office (CBO), failure to extend cur-rent income tax rates will increase taxes on small businesses and hard working Americans by $4.6 trillion over ten years and by $232 billion in 2013 alone.

Additionally, a recent study by Ernst and Young found that small business job creation would be hindered by President Obama’s proposal to raise taxes on about 900,000 small companies, costing more than 700,000 jobs.

Raising taxes on individuals or small business that are already handicapped by the uncertain tax landscape is the wrong approach to economic recovery. We must extend the current tax rates for all families and job creators to stabilize and grow our economy, while ultimately seeking comprehensive reform to simplify our nation’s tax code in the next Congress. Until we do, small businesses will continue blowing in the wind and the storm will rage on.

For nearly four years bureaucratic red tape, complex regulations, overreaching laws and uncertainty have waged the perfect storm against job creators. As the old saying goes, when it rains, it pours and it has been pouring long enough. It is time this Administration got out of the way so job creators can offer some sunshine to our na-tion’s struggling economy and get Americans back to work.

THE ALABAMA WORKFORCE Development Initiative received the “Registered Apprenticeship Innovator and Trailblazer” award yesterday from the U.S. Depart-ment of Labor for their Go Build initiative expansion efforts. The award was presented at the “Out Educate, Out Build, Out Inno-vate” National Education and Ac-tion Summit in Washington D.C.

The Go Build initiative is a recruitment program aimed at enhanc-ing the image of the skilled craft trades and recruiting the next gener-

AWDI’S Go Build Initiative Wins National Award

ation of skilled workers. AWDI launched Go Build in Alabama in 2010 with much success and expanded into Georgia earlier this year with a partnership with the Governor’s Office of Workforce Development. Plans are being made to expand into other states.

“We are proud to be recog-nized by the Department of La-bor for efforts with the Go Build program. This initiative has proven to be successful in both states and we are excited to continue our efforts to expand into other states and potentially go national,” said AWDI execu-tive director, Bob Woods.

The Summit was a commem-oration of the 75th Anniversary of the signing of the National

Apprenticeship Act. The Sum-mit featured leaders and stake-holders from across the Nation-al Apprenticeship System and recognized national programs that represent dedication and excellence in their efforts. Woods also served as a panelist at the event.

The Go Build program ini-tiative is a labor neutral pro-gram and has been officially endorsed by the Construction Users Roundtable (CURT), an international organization founded by construction and engineering executives rep-resenting major corporations all across the globe, as their image enhancement and re-cruiting program. Both the Alabama and Georgia program

U.S. Department of Labor recognizes Go Build at National Summit


2012 Election Update: The Obama Economic RecordCHANGE

1.1 million

9%

83%

43%

$13,975

53%

25%

23%

45%

6.4 million

13%

4 places

TODAY

13.1 million

8.5%

$3.38

$15.2 trillion

$48,706

11.9

$8,244

$4,129

46 million

46.2 million

$147,800

5th

INAUGURATION DAY

12.0 million

7.8%

$1.85

$10.6 trillion

$34,731

7.8

$6,591

$3,354

32 million

39.8 million

$169,700

1st

Unemployed Americans

Unemployment Rate

Gas Prices

Federal Debt

Debt per person

Misery Index

College Tuition

Worker Health Insurance Costs

Food Stamp Recipients

American in Poverty

Home Values

U.S. Global Competitiveness

partnered with Mike Rowe, executive pro-ducer and host of Discovery Channel’s “Dirty Jobs,” and his mikeroweWORKS.com initiative. Rowe’s website and founda-tion call attention to the growing skills gap while providing a comprehensive resource for anyone looking to investigate a career in the skilled trades.

The Alabama Workforce Development Initiative, a 501c3 which was created to develop a successful recruitment program for skilled craft trade labor, worked to es-tablish the Go Build brand with the goal of expanding it across the South and beyond. Go Build aims to address current and fore-casted needs in skilled labor. According to the Bureau of Labor and Statistics Current Population Study, more than one third of skilled tradesmen are over the age of 50. For every four tradesmen who retire, only one is in the education pipeline to replace them.

News & Notes

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Left to Right: US Secretary of Labor Hilda Solis; Bob Woods of Southern Company; Libby Sexton-Romano of Big Communications; Mittie Cannon of Robins & Morton; Bo Lineberry of Balch & Bingham LLP; and John V. Ladd of Office of Apprenticeship

RETREAT. REGROUP. RELAX. Reload.

RETREAT, REGROUP, RELAX, & RELOAD

SELwOOD FARm706 Selwood Road Alpine, AL 35014800-522-0403

[email protected]

SelwoodAD.indd 1 11/19/09 9:44:47 AM

SELWOOD FARM706 Selwood RoadAlpine, AL 35014800.522.0403selwoodfarm.com

A L A B A M A

THE RITZ-CARLTON LODGE REYNOLDS PL ANTATION JULY 18-19, 2013 G R E E N S B O R O , G E O R G I A

July 19Continental BreakfastEducation SessionEducation SessionBreakEducation SessionLunchGolf TournamentClosing Reception at Golf Course (Heavy Hors d’oeuvres)

July 18ABC Board of Directors Meeting (Beverages & Coffee)Welcome Reception and Dinner

7:30 am8–9 am 9–10 am10–10:15 am10:15–11:30 am11:30 am1:30 pm5:30 pm

3:30 pm

6:00 pm

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photograph by NAMEGOES HERE60 AL CONSTRUCTION NEWS AUG/SEP 2012

ABC sent a letter to the House Subcommittee on Health, Em-ployment, Labor and Pensions in support of the Secret Ballot Pro-tection Act (H.R. 972), which would guarantee workers the right to an anonymous, secret ballot election when deciding whether to be represented by a union. The bill prohibits undemocratic “card check” campaigns and protects the right to make this important decision without coercion. ABC’s letter pointed out that although existing procedures for fair elections call for secret ballots by de-fault, these procedures must be secured against politically moti-vated attempts to curtail, circumvent and ultimately eliminate them.

ABC staff sent a letter to the Committee on Oversight and Gov-ernment Reform in regard to the hearing titled, “Continuing Over-sight of Regulatory Impediments to Job Creation: Job Creators Still Buried by Red Tape.” The letter expressed support for increased transparency in the regulatory process and expressed concern over unnecessary regulations in the construction industry. It should be noted that Representative Mike Kelly (R-PA) quoted our letter and mentioned ABC during the hearing on Thursday 7/19/2012.

ABC staff sent a letter to the Subcommittee on Labor, Health and Human Services, Education and Related Agencies of House Committee on Appropriations in regards to the FY 2013 Labor-HHS appropriations markup. The detailed letter expresses support for the inclusion of several provisions in the bill that would prohibit government-mandated project labor agreements, the NLRB’s pro-posed ambush elections procedures and the DOL “persuader” regulation. The bill was approved by the committee.

ABC staff sent a “Key Vote” letter to the House of Representa-tives in support of the amendment offered by Rep. Steve King (R-Iowa) to the Department of Defense Appropriations Act, 2013 (H.R. 5856). The amendment would prohibit funds authorized by the bill to be used to implement, administer, or enforce requirements in the Davis-Bacon Act.

ABC signed onto a business group letter regarding the Office of Federal Contract Compliance Programs Notice of Proposed Rulemaking (NPRM) revising non-discriminatory work practices from Section 503 of the Rehabilitation Act of 1973. The business coalition letter expresses concern over the proposed rules due to unachievable standards and burdensome requirements.

ABC staff July 16 sent a “Key Vote” letter to the full Senate urg-ing Senators to vote NO on the motion to proceed to the Democ-racy is Strengthened by Casting Light on Spending in Elections of 2012 (DISCLOSE) Act (S. 3369). In the letter, ABC expressed that the DISCLOSE Act of 2012 is a direct attack on businesses and trade associations, threatening to silence their voices in the nation’s political process. S.3369 did not receive the 60 votes necessary to invoke cloture by a vote of 53 to 45.

ABC sent a “Key Vote” letter to the House of Representatives strongly urging Members to vote in favor of H.R. 6079, Repeal of Obamacare Act. ABC has long opposed Obamacare due to oner-ous provisions, tax increases and other harmful regulations.

ABC sent a letter to the Committee on Oversight and Govern-ment Reform in regards to the hearing titled, “Continuing Oversight of Regulatory Impediments to Job Creation: Job Creators Still Bur-ied by Red Tape.” To help companies plan for regulatory burdens, ABC supports H.R. 3862, Sunshine for Regulatory Decrees and Settlements Act of 2012, which would promote enhanced open-ness and transparency in the regulatory process.

ABC sent a letter to the Subcommittee on Labor, Health and Hu-man Services, Education and Related Agencies of House Commit-tee on Appropriations in regard to the 2013 appropriations markup. ABC supports numerous provisions of the bill that covered anti-competitive government-mandated PLAs, ambush election proce-dures and the H-2B visa program.

ABC sent a letter to the Technology, Information Policy, Inter-governmental Relations and Procurement Reform Subcommittee of House Oversight and Government Reform Committee regard-ing the June 28 hearing titled, “Mandate Madness: When Sue and Settle Just Isn’t Enough.” ABC supports increased transparency and opportunities for public feedback in situations where agencies promulgate rulemakings via consent decrees and settlement agree-ments. Representative James Lankford (R-OK), chairman of the sub-committee, discussed this letter during the hearing and submitted it for the official record.

Letters to Federal House & Senate Members

On Key Legislative Issues

Birmingham CrossplexBirmingham, ALPhoto Credit: Mason Fischer Photography

Lead by ExampleWe believe in leading by example. At Griffin Electric, we’ve been doing that for over 34 years. We strive to be among the best in the electrical contracting industry by listening to the needs of our customers, offering cost-effective solutions, and delivering superior results. You can rely on us to take the lead on your next project.

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AirbusComes to Alabama

by JAY REED

The recent announcement that an Airbus expansion plant plans to call Alabama home was met with excitement by our industry. The wet blanket came when a union announcement declared Airbus on their radar. Not so fast declared ABC in a letter to the editor published in the Mobile Press Register. The letter was actually picked up by the other leading news-papers in Alabama and was printed statewide over a week long period.

The numbers just are not there for unions to feel they can organize such a plant. The very basis of “Right to Work” is why Airbus is coming here to begin with.

fact is that unions have nothing to offer in return for the dues they expect to collect from employees.

Forced unionization has not worked well for those states that have legalized that practice. Those states continue to lose jobs while right to work states see faster job growth. Alabama is a right to work state be-cause the citizens of Alabama and the representatives they elect to the legislature understand that no em-ployee should be forced to join a union or pay union dues. This stance continues to serve the state well and is partly responsible for the addition of top notch compa-nies like Airbus that compete in a worldwide economy.”

– Rick Brown, Constangy, Brooks & Smith, LLP

“THE UNION CONTENTION THAT Airbus will be unionized is more a statement of union desire than anything else. The same statement was made when Mercedes, Honda and Hyundai announced they would open plants in Alabama. Those world class companies remain nonunion, as do the vast majority of companies in Alabama. You must understand that the jobs, pay and benefits provided by such employers are appreciated by those who are fortunate enough to be hired. Unions should be expected to make a sales pitch to the Airbus employees, but the


Alabama Construction News felt it important to share ABC of Alabama’s President Jay Reed’s letter to the editor.

Union can try at Airbus, but probably won’t succeed

The International Association of Machin-ists recently announced it plans to unionize workers at the Airbus plant scheduled to open 2016. But with Alabama being a right-to-work state, labor bosses are likely to have little success here.

Only 10 percent of workers in Alabama belong to a union, which means 90 percent prefer not to wear the union label. Alabam-ians are fiercely independent and not afraid to show union bosses the door.

Living in a right-to-work state, Ala-bama workers have the freedom to choose whether or not to join a union, and cannot be forced to pay union dues as a condition of employment. However, the benefit of freedom is not the only reason workers are giving unions the cold shoulder; they also are reaping economic benefits.

The Wall Street Journal reports that right-to-work states have higher job growth and enjoy more cost-of-living-adjusted dispos-able income than union workers, after ad-justing for their relative purchasing power.

So welcome to Alabama, Airbus, into our pro-business and right-to-work environment.

JAY REEDPresident, Associated Builders and Con-tractors of Alabama

Not only did ABC staff receive accolades from our member base in the state but the public at large even weighed in. The inter-net became a “blog” hub for people excit-ed about Airbus and excited about ABC’s stance on Merit Shop in Alabama.

Even Captain John McElhaney joined in the debate and even took time to write Mobile Press Register and to write ABC. We thought we could conclude with his own words.

photograph by SHUTTERSTOCK.COM

Bottom line: Unions will destroy companies

Regarding the July 11 article, “Union targets Airbus plant,” on the International Associa-tion of Machinists’ efforts to organize the workers at the new Airbus factory in Mobile: I have first-hand knowledge of their representation tactics.

I watched their destruction of a once-great and proud 62-year-old company over a period of 38 years at Eastern Air Lines. Eastern is now 21 years in the aviation graveyard.

I ask Tom Buffenbarger, IAM president: If his representation is so wonderful, then why in recent years did the employees at Boeing in Charleston, S.C., and mechanics at United and Northwest Airlines disenfranchise the IAM?

His union does not negotiate contracts by collective bargaining; they extort them (illegal slowdowns, sickouts, wildcat strikes, etc.) They shut down Boeing for two solid months a few years ago when Boeing was already three years behind with the production of the new B-787.

Without the in-sourcing of jobs by foreign companies in Mobile (Degussa, Austal, Thys-senKrupp plus numerous chemical companies), Mobile would be destitute. Where have the American companies that were in Mobile — like International Paper, Alcoa, Alabama Dry Dock & Shipbuilding — gone? Could it be that their unions pushed them beyond the point of diminishing returns?

Thank God we live in a right-to-work state.

CAPT. JOHN McELHANEYDaphne

Official Notice To Alabama Contractors BP has reached a settlement with the court system that involves construction related companies NORTH and SOUTH of I-10 (Zones D & C). The details of the settlement are clearly defined and will certainly impact contractors licensed in Alabama. ABC has made arrangements for Bainbridge Mims Rogers & Smith, LLP and Cunningham Bounds, LLC law firms to assist our members and the construction industry with the logistics surrounding the settlement. The map below outlines the areas included in the settlement.

For details and to determine if you qualify, contact:

Nick Gaede, Jr. (205) 868-4108

Steve Olen (251) 471-6191

“No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.”

photograph by NAMEGOES HERE

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