SAFETY, QUALITY, ACCOUNTABILITY, INNOVATION & INTEGRITY

The Core NewsFor employees, families and friends of Corval Group, Inc.

2nd Quarter 2019 Volume 30, Issue 02

WWW.CORVALGROUP.COM

®

W E B U I L D C O N F I D E N C E

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CEO Corner - April 2019

Welcome spring! For those of us that live in the north (especially North Dakota), it has been a very snowy and cold January through March. First and most important I want to discuss our 1st recordable in over 1.5 million man-hours and our first lost time injury in over 10 years. This incident, like so many others, occurred in a split second. Our employee was working diligently and focused on the task at hand. The sandblasting equipment he was working with is the same equipment he has worked with over and over. However, in that split second the nozzle rotated towards his leg/abdomen and the “trigger” engaged. He is fully recovered and back at work. I have said this before and I will say again; Safety statistics & awards are meaningful but that is NOT the core value of Safety. It is about a culture that our people and partners go home without injury every day without exception. On the day of this incident, Corval failed and we have to “own it.” We are all accountable for everything that occurs in our organization and accountability is the only way for us to improve every day and meet our goals/expectations.

I would like to discuss one other topic. Recently an employee brought up what he felt was some confusion around strategy and direction. As a 98 year old company who has executed projects throughout North America, it is true that at times direction and strategy does not seem clear. I want to remind and reinforce to everyone within the Corval Organization who we are and where we are going in the future. We are an engineering and construction organization who is passionate and focused on winning good work with good customers and executing them safely, profitably, with a high degree of quality, and on time…PERIOD! It is true that we work in the industrial and commercial markets and it is also true we perform work under different contract types. Examples are general construction, specialty construction, EPC, design/build, construction management and service. We will continue to analyze the markets we want to participate in, and the customers who we want as long term partners.

We hope everyone has a great Easter and you are able to spend time with your family and friends.

Thank You & Work Safe! - Paul

On The Cover...Completed Project

Johnson Senior High School Renovation

In This Issue...Message from Paul Jordan 1

Employee Spotlight 2

Employee Engagement 3

Project Updates 4

Focus on Williston 6

Corval Management Services 7

Subcontractor Management 9

Safety - Distracted Driving 10

Corval Foundation 11

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Tad Ulrich, Senior Project ManagerThis is a quarterly interview series where we interview a selected employee. We want to give you the ability to hear right from them, in varying roles, what gets them excited about Corval and makes them want to come to work each and every day. Next up is Tad Ulrich, in CCI’s St. Paul Office.

Tad attended North Dakota State University (Go Bison!), graduated from the University of Minnesota, and has been in construction for over 20 years on the General Contractor side of things.

Which is your favorite part about working for Corval?

The variety of work and type of projects.

What has been your favorite project at Corval?

I really only have one to choose from, and we’re just getting started. The Hastings Middle School project.

Before working at Corval, what was the most unusual or interesting job you’ve ever had?

I planned on being a veterinarian and spent most of high school working at a vet clinic/horse farm. After 5 years of shoveling dung, I knew I didn’t want to be a vet! Still a lot of “dung” to deal with in the construction industry, but it doesn’t smell as bad!

How do you keep a healthy work/life balance?

Not sure I do a great job on the health side, but I try to stay even keeled about the highs and lows at work and life in general.

What is most rewarding about your job; what makes it all worthwhile?

Turning over a project to a happy owner.

What’s your favorite funny story about yourself?

After a brutal 1st day of snowboarding with my two sons, I told them this was my first and last time. Snowboarding is for young people, not people my age. As I’m finishing, a 60+ year old woman walks up beside us with her snowboard in hand. I still don’t snowboard.

What are you most proud of?

My marriage and my kids

What does a normal day at the office look like?

Too much sitting.

What is your favorite food of all time?

My wife’s manicotti.

What is your favorite movie of all time?

Star Wars, does that sound too Geeky?

Who would you rather cheer for, Green Bay Packers or Minnesota Vikings?

Skol! Anybody but the Packers.

Employee Spotlight

Send us your news!Perhaps you just celebrated a milestone, or caught a big fish – we want to hear about it! From birth or wedding announcements

to professional or recreational achievements, to tales of adventure from

a recent trip… send us your news for inclusion in future issues of the Core News!

Email your story and photos to: marketing@corvalgroup.com

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Employee Engagement

Chili Cook Off Corval had a Chili Cook-

Off on January 31st.

The winner, Donna Marsh, was awarded a $25

Chili’s gift card.

Congratulations Donna!

March Madness Challenge

After a big loss in the first round in 2018, No. 1 Virginia beat No. 3

Texas Tech 85 to 77 in an exciting overtime

win. Congratulations to our Corval Group March

Madness Winners!

1st – Anthony Harrington ($50 Amazon gift card)

2nd – Brian Kogler ($25 Amazon gift card)

3rd – Brian Anderson ($25 Amazon gift card)

Bowling Night at

Flaherty’sCorval went bowling for its annual event at Flaherty’s.

The trophy was stolen from Anthony Harrington’s

team, Larry’s Legends, by Thunder Balls (Grant Mongin, Steve Bolton,

Ron Hedtke and Matthew Edwards/Akrem Hagos).

Upcoming Events.... (In St. Paul)

Employee Appreciation Week

May, 2019

St. Paul Saints Game and Tailgate

June 13, 2019

Corval’s Employee Engagement Committee continues to plan fun, meaningful events for employees in and outside of the workplace. Below are highlights from recent events!

Save the Date: Corval Family PicnicSunday, August 18th

Long Lake PavilionNew Brighton, MN

11 am – 4 pm

Corval in the Community

2019 Minnesota Polar PlungeCorval Group participated in the Polar Plunge again this year on March 2nd. Corval Group raised $876 this year. A special shout out to Dan Marnach for raising just over $250 by himself!

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Project UpdatesCargill Big Lake, MN Project Manager Joshua Tinucci

The Cargill Big Lake, MN project involves the installation of a new boiler system as well as process and utility piping mains and equipment connections in a new building expansion. Additionally, we are installing a steel base frame for new condenser and steel platforms, walkways, and stairs for their new and existing condensers. Our scope of work is part of an effort by Cargill to expand their production capabilities of precooked egg product.

This project was design build and Corval utilized VAA as the engineer. Dean Trudeau and PJ Wiedewitsch are Corval’s foreman.

Cargill, Incorporated is an American privately held global corporation based in Minnetonka, Minnesota. It was founded in 1865 and is the largest privately held corporation in the United States. Cargill employees 155,000 professionals in 70 countries.

Corval has completed Cargill projects in Minnesota, Iowa and Wisconsin.

E-mail potential project opportunities to:

Biz-Leads@corvalgroup.comEveryone at Corval has a role in winning work!

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Project Updates

CCI - Jennie-O Turkey

Jennie-O – A longtime client of Corval’s Refrigeration Group

Based in Willmar, MN, Jennie-O has been in business since 1940. They offer 1,500+ products and distribute in over 60 countries with nearly 7,000 employees.

Just a few of the projects Corval has completed for Jennie-O are listed below:

• Willmar Plant #1 Ventilation Upgrade - Replaced machinery room ventilation with updated fans.

• Willmar Plant 4/5 Controls Upgrade - Replaced existing FES Mirco II with new Allen Bradley control system

• Willmar Plant 4/5 North Wiener Packaging Evaporator Replacement - Removed two existing evaporators and installed one Evapco DX evaporator with reheat

• Willmar Plant 4/5 Tied Roast Evaporator Replacement - Removed two existing evaporators and installed CPR fed Evapco evaporator

• Willmar Plant 4/5 Turkey Neck Chiller/Evisceration Mechanical - Installed Tube N’ Tube water chiller for turkey necks, DX ammonia, sanitary pipe, and sanitary water pump. Including Allen Bradley Controls. Removed and installed potable water piping, compressed air piping, and inedible removal pneumatic piping

• Current Project 2019: Willmar Plant 4/5 APV Replacement - Remove Existing APV, Installing six (6) vertical Scraped Surface Heat Exchangers (SSHEs) with separate surge drums. Installing to Evis engine room. - 12000 lb/hr cooling capacity turkey per line, two lines. All ammonia, sanitary piping, sanitary pumps, and Allen Bradley controls

• Montevideo Ventilation Replacement - Replaced exhaust fans and installed Make-up air for ammonia machinery room. Included new Allen Bradley control system

• Montevideo Takedown 5 and 7 Evaporator Replacements - Removed old Krack Evaporators and installed CPR fed Evapco Blast/Takedown evaporators. 14,000 lb evaporators

• Montevideo Takedown 6 Evaporator Replacement - Removed old Krack Evaporator and installed CPR fed Evapco Blast/Takedown evaporator. 14,000 lb evaporator

• Melrose Ventilation Replacement - Replaced exhaust fans and installed Make-up air for three (3) ammonia machinery rooms. Included new Allen Bradley control system

• Pelican Rapids (West Central Turkey) Ventilation Replacement - Replaced exhaust fans and installed Make-up air for two (2) ammonia machinery rooms. Included new GEA OMNI control system

If you visit their website https://www.jennieo.com, you will find that you can learn almost everything you would like to know about turkey from how to handle, brine, smoke, etc. and also many recipes from comfort foods to health & diet, easy prep to cuisine all with beautifully illustrated pictures. Check out the products on the bottom that not only give you all of the nutritional information regarding the product, but recipes you can use them in. The Holiday and Event tab helps you plan complete meals.

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Focus on WillistonThe Bakken Formation is one of the largest contiguous deposits of oil and natural gas in the United States. It has emerged in recent years as one of the most important sources of new oil production in the United States.

In late 2015, falling oil prices caused some companies and their contractors to move their operations out of North Dakota. The existing oil fields still needed service, which led to the launch of Corval’s Reliability and Maintenance group (R&M). In 2017, Corval Group opened our Williston office, in response to the high demand for contractors serving the Bakken oil fields.

Today, our Williston operation is the home base of Corval Builders & Erectors’ R&M Division. Carl Karg is Division Manager, continuing in the footsteps of his father Jon Karg who led the division after helping launch it in 2017. Carl is supported by Jessica Stroh, office coordinator, and Megan Clark, administration. Corval maintains our Williston presence thanks to the 30+ Roustabouts and Laborers we employ in the field. This group performs service and small project work in northwestern North Dakota and northeastern Montana. Our Williston facility also houses large equipment including variable reach forklifts, skid steers, a back hoe and 20 service trucks to cover the area. Fourteen of these trucks are outfitted with service bodies and the specialty tools.

Our R&M customers served by the Williston team include:

• XTO Energy Inc.• EOG Resources• Ferus Natural Gas• Continental Resources, Inc.• EnerCorp Sand Solutions, LLC• Samson Oil and Gas USA, Inc.

• Oasis Petroleum• Nine Point Energy• Rim Operating, Inc.• Hunt Oil Company• Equinor Energy LP• Crescent Point Energy

US Corp.

PICTURED BELOW:

Top row left to right – Cody Plush, Tommy Cauthen, Carl Karg, Matt Hinck, Sedrick Burrell, Destra Winborn, Juan Martinez, Elliot Karg, Quincy Eagleman, Iaopo Napeli, Brandon Cassens, Anthony Lindquist.

Bottom row left to right – Hannah Bassett, Robert Salter, Antonio Beruman, Tylor Sorenson, Charles McElroy, Gary Brown, Josh Kenas (kneeling), Bryant Barrows, Shane Cui, Pierre Courchene, Kristina Fisher, Anthony Hill, Javier Ramos, Tim Kasperak, Scott Apenhorst, Othniel Nkunim, Megan Clark and Jessica Stroh.

Carl Karg, Division Manager

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Scott Fowler Joined Corval in early January 2019 with the task of developing Corval’s Construction Management capabilities via our operating company Corval Management Services (CMS). Scott has over 25 years of experience in construction, and has delivered many large projects under the Construction Management model. His resume includes large and small projects for a long list of happy industrial, commercial, and government clients.

“Construction Management is a professional management practice consisting of an array of services applied to construction projects and programs through the planning, design, construction and post construction phases for the purpose of achieving project objectives including the management of quality, cost, time and scope.” – Construction Management Association of America

VISION FOR CMS

A number of factors contribute to a customers’ preference for a given construction delivery method. Owners engaging a Construction Manager (CM) typically have a healthy respect for the specialized knowledge required to effectively and efficiently develop a project to the construction document phase ready for bidding. Some of these companies formerly had in-house construction departments and may have reduced those ranks during an economic downturn, or simply re-focused on their core business. With resources – budget and staff – focused on their core business they seek to outsource construction expertise.

They may have also realized that relying only on the Low Bidder doesn’t necessarily result in the Best Value and the old saying “you get what you pay for” is a key driver in looking for alternate construction delivery methods. Enter the Construction Manager… In the Construction Management world, the client can select their construction teams based on relationships, past performance, quality and safety – key drivers of Corval’s business model.

The CM delivery method also allows a fair amount of flexibility for their design and construction partners to work together toward a bottom line solution that creates additional value to the client’s operations. Bringing a construction partner on earlier in the project cycle allows them to work with the design professionals to deliver a superior product, maximizing scope within the targeted budget. The ongoing trend – switching from the traditional Design-Bid-Build program based on low bid, to negotiating compensation with a CM selected on the basis of their qualifications – is accelerating. Owner satisfaction surveys continue to indicate a higher degree of satisfaction with the negotiated model over the standard hard bid delivery model, which many characterize as combative.

Corval is a 98-year old business with strong values, great people, and a solid culture. There are opportunities to assist Corval transitioning along with the rest of the industry, to help clients earlier in the project life cycle and build mutually-beneficial relationships. The industry itself is evolving toward full-service and collaborative project delivery, where skills, qualifications and reputation for delivery outweigh the lowest price.

Construction Management Services (CMS)

Continued...

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CMS Cont...

Corval Management Services can provide value added Pre-Construction services for clients, positioning the other operating companies for project opportunities that might not otherwise exist. While maintaining solid self-performance capabilities within the individual companies that make up Corval Group, CMS can incorporate strategies to the business that can help manage owner and subcontractor expectations, and increase overall project success.

The future of the industry is a balance of focusing on owner satisfaction, safety, quality, schedule and overall price and efficiency. Obtaining work in the CM world includes Marketing and Business Development efforts that showcase a portfolio of success – strong teams, and a list of satisfied customers. Success breeds more success. Happy customers pay their bills and it’s the foundation of the business: Firms specializing in CM work typically enjoy 80-90% repeat business, which adds importance to Corval’s Customer Focus initiative.

Corval has a solid group of quality people, and it is an exciting opportunity to develop further with the industry. The days of waiting for drawings to come out to bid are being replaced by owners seeking construction management partners as key contributors to their business success.

Scholarship ApplicationsGet Ready for the 2019 Corval Scholarship Application

Corval Group is offering the opportunity for your child to receive a $500 or $1,000 scholarship!

To qualify, students must be graduating during the current school year and be accepted into a baccalaureate or vocational/trade program at an accredited college or university.

The applicant must be a child of a Corval Group employee who is classified as regular full-time or part-time with at least two year of cumulative service within the past five years.

Please contact HR for an application; details on qualifications and requirements. All applications are due by Friday, June 28th.

Submit application and direct inquiries to:

Corval Group, Inc., Human ResourcesAttn. Erika Field

1633 Eustis StreetSaint Paul MN 55108

651-605-2444efield@corvalgroup.com

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Subcontractor ManagementThe Team: Steve Poser is overseeing the Subcontract Management Initiative. He will actively take part in the development of our systems and processes

Danny Rodriquez is the Subcontract Program Director. His role is to manage the Subcontractor

Management Program (SMP). Starting with sourcing and prequalifying good subcontractors to partner with Corval Group Companies, to additionally working with project teams from the contract award stage through the Subcontract close-out.

Danny Rodriguez place of residence is in Houston Texas, and therefore Danny works and offices out of our CB&E office location, also located in Houston Texas. Danny is very accessible and can be reached by email or phone at any time. When required, please do not hesitate to contact him.

Project Managers, On Site Leaders, Accounting, Safety Department, Quality Department and many others are participant and take part in assuring that the subcontractors working on our projects deliver to Corval’s expectations and standards.

Why subcontract management? Subcontract management promotes consistency in managing subcontracts across all inner company support groups, mitigates risk to organization and can increase profitability. Ultimately poor performance by any member on our project team is a direct reflection on Corval Group to our customers.

Who does Corval subcontract with?Although Corval self-performs a major portion of its Work, Corval does not have the capabilities to perform all of the work that is required or mandated in our projects. Thus we hire “specialty contractors” to work scopes like excavation, insulation, electrical power and controls, roofing, etc.

When Corval is awarded a projects as a Construction Manager it may only hire and/or source a General Contractors and Engineer firm(s). When Corval is the General Contractor, than all trades would be contracted through Corval to perform the work.

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Safety

Remember to treat everyone like family.

Treat merging traffic as if your Grandmother is driving the vehicle!

Distracted / Defensive Driving

It’s that time of year, kids excited about finally being able to play outside, ride their bicycles and the end of the school year is fast approaching. It’s also that time when motorcyclists come out, excited to ride their motorcycle that has been collecting dust.

In all cases, while operating a motor vehicle, drivers should practice defensive driving techniques. Defensive driving is the art of driving so as to prevent and avoid traffic crashes, regardless of the unsafe conditions and actions created by other drivers and adverse road and or weather conditions.

8 Defensive Driving Techniques:

1. Leave at least two car lengths between you and the vehicle in front of you. Glance ahead in the direction of travel to observe driving conditions at least 2-3 vehicles ahead.

2. Get the “big picture”; learn to see the entire roadway. Sweep the scene, sides and back. Avoid “tunnel vision.”

3. Keep your vehicle visible and signal your intentions early.

4. When entering intersections practice looking left/right/left. Be sure to come to a full stop before proceeding.

5. The posted speed may be too fast, think about conditions, roads with cars parked on the sides and kids playing in the area – would you be able to stop if a child darted out in front of you?

6. Vehicles have blind spots, some worse than others, you could easily lose sight of a person/motorcycle or vehicle in a blind spot. Use rear-view/side mirrors & glance over shoulder prior to making lane changes.

7. ALWAYS maintain a cautious driving attitude. Remember, when entering a Round-a-Bout that Minnesota law requires you to yield to vehicles that enter first.

8. Prior to driving it is a good practice to walk around your vehicle and inspect it for damage and verify the path of travel is free from obstruction.

8 Tips to Avoid Distractions:

1. Put aside electronic distractions. Never use text messaging, email, or the internet, including those built into the vehicle, while driving.

2. Store loose gear, possessions and other distractions that could roll around in the car, so you do not feel tempted to reach for them on the floor or the seat.

3. Make adjustments before you get underway. Such as GPS, seats, mirrors, climate controls and sound systems. Check traffic conditions ahead of time.

4. Finish dressing and personal grooming at home, before you get on the road.

5. Snack smart. If possible, eat meals or snacks before or after your trip, not while driving.

6. Fully focus on driving. Do not let anything divert your attention, actively scan the road, use your mirrors and watch out for pedestrians and cyclists.

7. If another activity demands your attention, pull off the road and stop your vehicle in a safe place.

8. As a general rule, if you cannot devote your full attention to driving because of some other activity, it’s a distraction. Take care of it before or after your trip, not while behind the wheel.

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SAFETY, QUALITY, ACCOUNTABILITY, INNOVATION & INTEGRITY

®

Corporate Headquarters1633 Eustis StreetSt. Paul, MN 55108-1219P 651.645.0451www.corvalgroup.com

About Corval GroupEstablished in 1921 and based in St. Paul, Minnesota, Corval Group does more than simply build facilities and mechanical systems. With a fully integrated array of construction, fabrication and business solutions, Corval has been delivering bottom line results to ensure owners achieve business goals for 98 years. Building Confidence is more than a motto, it’s nearly a century of delivering results and saving clients millions of dollars/profit.

AN AFFIRMATIVE ACTION, EQUAL OPPORTUNITY EMPLOYER

MARKETS SERVEDPower & Energy • Industrial Manufacturing

Oil & Gas • Food & Beverage

Commercial • Petrochemical

Service & Maintenance

Corval Foundation and Annual Golf Event

Did you know that Corval Group has an established non-profit, charitable foundation? This entity allows us to do more good – harnessing the strength of our business relationships to assist in fundraising for programs that benefit the community at large and those in need.

The Corval Group Foundation has raised millions for non-profits who work with children and youth in areas of health, education and family services.

Some past recipients of funds from the Corval Foundation include:

• Various metro and outstate school programs

• Academy of Whole Learning

• Spare Key

• MN Special Olympics

• Hudson Hospital Foundation

• St. David’s Center

• Bolder Options

• Make-A-Wish

• Children’s Home Society

• United Way

• Gillette Children’s Specialty Healthcare

• Totino-Grace High School

Since 1997, Corval Group has hosted an annual Charity Golf event for business partners, vendors, and customers to raise money in support of youth and family development in our communities. This event is not only an opportunity to build relationships and enjoy a day on the course: more importantly, it has a positive impact on the communities in which we live and work.

This year’s 22nd Annual Charity Golf Tournament will take place on Monday, July 29th at Midland Hills. The planning committee is considering some modifications from previous years, including enhancements to the sponsorship opportunities, streamlining the after-golf event, and targeting 501(c)3 organizations.

Corval Foundation