Ward Jennings Able Steel Fabricators, Inc. Jim Palecek Hunsaker & Palecek, PLLC Jim Sienicki Snell & Wilmer, LLP Patricia Thornham Advance Terrazzo Company Dennis Tsonis Lovitt & Touche, Inc. Christine Ulibarri Morrison & Associates, CPAs, Inc. The new board will begin its service July 1, 2009 and serve through June 30, 2010. Congratulations!

At the chapter’s 2008-09 Annual Member Meeting & Election Dinner on May 19, the results of the election ballot for the 2009-10 Board of Directors was announced. It is our pleasure to congratulate and welcome the following members as ASA of Arizona leaders for the coming fiscal year: President Jeff Banker Banker Insulation President-Elect David Beer Sun Valley Masonry

Vice President Bob Conshue Ambient Electric Secretary Vic Pietkiewicz Harris Mechanical Southwest Treasurer Michael Gatson Pittman & Murdough, PLLC Directors: Sheridan Bailey Ironco Enterprises, LLC Marlin Coffee Magnum Companies Kevin Gaston Ace Asphalt of Arizona, Inc.

The Results Are In: Board of Directors for 2009-2010

May 2009 Subcontractors Update Bulletin

ASA of Arizona, Inc. has a new home: 4105 N. 20th Street Suite 230 Phoenix, AZ 85016

Inside this issue:

ASA Membership Delivers High Value

2

ConsensusDOCS Can Work for You Too

2

Learn About BIM and Get Ahead of the Curve

3

Members Named Among “Best of The Best”

4

I-9 Form Changes Take Effect

5

Writing Tip of the Month

5

Calendar of Events & Announcements

6

Subcontractors Update

Bulletin The Official Newsletter of the American Subcontractors Association of Arizona, Inc.

2008-2009 Chapter Sponsors

Arizona Appeals Court Reverses Lower Court’s Ruling, Upholds Lien Claimants’ Protections

Subcontractors in Arizona won a victory on May 19, 2009, when the Arizona Court of Appeals, District One, reversed a lower court’s decision that could have unduly discouraged or penalized lien claimants, particularly on large multi-lot properties, from filing lien claims. In t he case , Galeb -M i l l e r D e v e l o p m e n t v . M a r k h a m Contracting Company, Inc., the developer, Galeb-Miller, failed to pay Markham Contracting in a timely manner for its work, and did not provide the subcontractor with the required notice that its liens were bonded off. The trial court found Markham Contracting’s filing of five l i s pendens ( l ien no t ices ) “groundless,” and required the subcontractor to pay damages for filing unnecessary notices, citing

Arizona’s False Documents Act. On appeal, ASA, ASA of Arizona, the Arizona Builders’ Alliance, and the Arizona chapter of the Associated General Contractors of America, filed an amici curiae, “friends of the court,” brief supporting the specialty trade contractor. In its brief, ASA urged the Arizona Court of Appeals to reverse the lower court’s judgment because “in short, the ruling…tips the balance of power between developers and contractors sharply — and unfairly — in favor of developers.” The brief also urged the court to “make clear…that developers may not use the threat of” the state’s False Documents Act and “penalties as a bludgeon to prevent contractors from exercising their lawful lien rights.” The court

agreed with these arguments and vacated all damages, offsets and interest in favor of the specialty trade contractor. ASA tapped its Subcontractors Legal Defense Fund to pay its legal fees in the case. For more information on the Subcontractors Legal Defense Fund, visit www.sldf.net or contact ASA at SLDF@asa-hq.com. SLDF supports ASA’s critical legal activities to protect the interests of all subcontractors. SLDF is used to invest in precedent-setting litigation to establish subcontractors’ rights. Since its inception ASA has led the fight for subcontractor rights through legislation. The SLDF allows ASA to fight for subcontractors in the courts

ASA Membership Delivers High Value

Page 2 ASA of Arizona, Inc.

Through the generous support of its members, the American Subcontractors Association, Inc. (ASA) continues to provide top-notch member services to help subcontractors thrive. Over the last year, ASA focused its attention on helping subcontractors weather the economic storm, improving the public policy environment on both the federal and state levels, and identifying and disseminating best practices in the construction industry. In addition, ASA partnered wi th local ASA associations to amplify the unified voice of specialty trade contractors when the courts were set to rule on issues critical to subcontractors. Some highlights of ASA’s 2008-2009 year include:

• ASA and its allies contacted legislators and ran ads in Capitol Hill publications touting the economic benefits of construction during the debate on the federal economic stimulus package. The final package contained more than $130 billion for construction projects of all types.

• ASA sought and obtained targeted tax relief in the stimulus package, including: a one-year delay of the 3 percent tax withholding requirement on public

i l legally manipulating subs’ contracts and prices through termination-for-convenience.

• A S A r e c o g n i z e d s i x outstanding firms with the first ASA Excellence in Ethics Certificates.

• ASA, the Associated General Contractors of America, and the Associated Specialty Contractors p r o d u c e d g u i d e l i n e s o n terminations and suspensions; project warranties; building information modeling; price adjustment clauses; and surety bonding.

• ASA prov ided c r i t i ca l subcontractor input into additional ConsensusDOCS documents being developed for release in 2009, including a model sub-subcontrac t and a model subcontract that reflects federal government project requirements. ASA continues to address the n e e d s o f s u b c o n t r a c t o r s n a t i o n w i d e . R e n e w y o u r membership and help ensure subcontractors have a strong voice through ASA next year!

contracts; an extension of small business expensing limits; and a one-year patch of the Alternative Minimum Tax.

• ASA gained coverage for subcontractors’ and ASA’s role in the economic recovery in a wide variety of media outlets, including the Associated Press, Engineering-News Record, The Tennessean, and industry trade publications.

• ASA asked regulators to e x c l u d e p a y m e n t s t o subcontractors from the 3 percent tax withholding requirement on public contracts, and draft IRS rules reflected ASA’s suggestion.

• ASA told federal regulators that their proposed $3,000 t h res h o l d on gov e r n me n t subcontracts for mandatory E-Verify enrollment is too low.

• ASA and ASA of California asked the California Supreme Court to affirm the long-standing legal principle ensuring contractors can rely on the accuracy and completeness of owner-provided plans and specs.

• ASA, ASA of Baltimore, and DCMSA asked an appeals court to keep prime contractors from

ConsensusDOCS.” In the two-hour multimedia recording of this ASA webinar, Newman discusses benefits such as the preservation of lien rights through a prohibition on unconditional lien waivers and the entitlement to payment within seven days after the contractor is paid. Newman also details strategies for convincing a prospective client to accept contract c h a n g e s b a s e d o n t h e ConsensusDOCS 750 model

Subcontractors around the country continue to take advantage of key ConsensusDOCS provisions that can help them preserve cash flow and claims, avoid costly disputes, and reduce risk. Margery Newman, of the Chicago-based law firm Ogletree, Deakins, Nash, Smoak & Stewart, explains the bottom-line benefits of using the ConsensusDOCS documents in FASA’s educational CD-ROM, “Cashing In on the

subcontract. Priced at $65 for ASA members and $95 for nonmembers, this product includes the audio-visual recording, a media player and instructions for playback. If you aren’t using ConsensusDOCS, it’s the perfect time to start! Call toll-free (888) 374-3133 to order item number 8024 or go online to www.contractorsknowledgenetwork.org

ASA Endorsed ConsensusDOCS Can Work for You Too

Even if your company is not using building information modeling (BIM) technologies right now, be aware that in many parts of the construction industry, the trend toward BIM continues. For contractors in certain trades (HVAC, steel fabrication, grading), BIM is becoming practically routine. Contractors that bid on projects that are bigger or greener are also f i n d i n g m or e B I M - r e l a t e d requirements in their contracts. Prime contractors that have worked with BIM generally like it, and, once the economy rebounds, many specialty trade contractors that have never used BIM before will need the right knowledge and capabilities if they want to bid on BIM projects. For subcontractors that are just beginning to learn about BIM, a great place to start is the “Guideline on Building Information Modeling,” one of the Guidelines for a Successful Construction Project developed and published by ASA, the Associated General Contractors of America, and the Associated Specialty Contractors. This guideline lays out the benefits of BIM for projects and for members of the construction team. It also provides clues to how your company will need to adapt its b i d d i n g , o p e r a t i o n s a n d technologies for future contracts containing BIM requirements. Think about BIM technology as an all-encompassing database or

“model” representing the whole life of a building or structure (from planning and design through construction and maintenance), and your participation in a BIM project as adding or “inputting” information into that model. Your information may be as significant as the shop drawings for a skyscraper’s HVAC systems, or as an RFI you submit to clarify which entrance your trucks can use to access the job-site. Some BIM databases, the guideline notes, include not just design but also scheduling and cost information, to help plan project manpower and materials needs. Before bidding on a project with BIM-related requirements, you’ll have to find out whether you’ll need to submit scheduling and cost information, and in what formats. Some contracts may require you to provide shop and as-built drawings earlier and in particular formats. Others may impose project documentation or communication systems. The “Guideline on Building Information Modeling” refers to a particularly helpful tool for managing your participation in a BIM project: the ASA-endorsed ConsensusDOCS 301 Building Information Modeling Addendum. The addendum’s language provides an example of an agreement addressing BIM-related issues such as what information must be submitted to the BIM

database, when it needs to be submitted, and who owns and controls the information. The addendum provides helpful language to help ensure proper risk allocation, and is flexible enough to be used as an addendum in traditional contracting methods. Because of ASA’s participation in the ConsensusDOCS coalition, ASA members receive a discount on the addendum.

Go to www.consensusdocs.org; partner code ASA and promo code 100 when ordering. Don’t wait to learn about BIM and risk missing future opportunities. The BIM trend is coming your way, now or later. Check out the “Guideline on Building Information Modeling” at www.constructionguidelines.org.

Learn About BIM and Get Ahead of the Curve

Page 3 Subcontractors Update Bulletin

Page 4 ASA of Arizona, Inc.

◊ JF Ellis Corporation ◊ Curran Masonry Corporation ASA applauds these members and the more than 80 member firms who are participants in the chapter’s Association Safety Plan (ASP) with SCF Arizona. By diligently working to maintain high safety standards and manage their workers compensation claims

Kudos and congratulations go out to five member firms for recognition they recently received after being named among the “Best of the Best” by SCF Arizona for outstanding company safety records in 2008. Those firms are: ◊ Star Roofing, Inc. ◊ Star Plastering, Inc. ◊ Five G, Inc.

productively and efficiently, ASP members have the opportunity to earn considerable dividend returns on premiums paid. For information on the ASP and how your firm can enroll, please contact the chapter’s SCF association representative Wendell Macnab at (602) 631-2033 or email wmacnab@scfaz.com

Chapter Members Named Among SCF’s “Best of the Best”

Writing Tip of the Month Good written communication skills are a necessity in today’s business and mass communication environment. But who doesn’t occasionally struggle with grammar and syntax? We’re happy to share these writing tips with you compliments of ASA. For other writing tips, see the ASA Style Guide under "Communications" in the Chapter Toolbox at www.asaonline.com. Use Commas To Separate or Clarify — or Not at All

Even the most experienced writer may have trouble using a comma correctly. Writers know that a misplaced comma has the potential to change the entire meaning of a sentence, and in some cases, this

Wrong. Take me through the building, and show me the problem. Right. Take me through the building and show me the problem. Wrong. We needed cement, gravel, and sand. Right. We needed cement, gravel and sand. Wrong. The project involves pouring concrete and remediation. Right. The project involves pouring concrete, and remediation.

could spell disaster. Luckily, there is a simple process one can use to steer clear of misplacing and misusing commas. When using a comma, a writer should ponder if the comma is being used for clarification or separation. If a comma does not perform either of these functions, it is not needed. Additionally, final commas should be omitted from a simple series when they do not aid the reader’s understanding. Finally, when connecting two simple sentences where a comma does not aid in comprehension, omit the comma once again. For example:

• Managing Sub-Subcontractors Made Easier! (Oct. 13, 2009) • Protecting Against Client Bankruptcy (Nov.10, 2009) • Subcontractor Default Insurance: Risk Management Swan or Ugly Duckling? (Dec. 8, 2009) • Boom or Bust? Predicting Your Business’s Future (Jan. 12, 2010) • Managing Your Completed Operations Risk (Feb. 9, 2010)

Someone once said, “Nothing endures but change.” This is especially true in the construction industry. What works today could be antiquated in six months, and forgotten in a year. Through the ASA/FASA 2009-10 “Putting Change to Work for You” webinar series, stay up-to-date the with the latest ideas for business success. Beginning in September and concluding in May 2010, scheduled webinars include: • Where the Projects Are: Finding and Getting Federal Projects (Sept. 15, 2009)

• Preserving Your Claims With Project Documentation (April 13, 2010) • Dispute Resolution: Strategies That Work (May 11, 2010) The registration fee is $199 for members/chapters and $279 for nonmembers. Each registrant will receive a multimedia recording of the webinar on CD-ROM and an ASA Certificate of Completion. For more information or to register for a webinar, email meetings@asa-hq.com.

Thank You to Our Advocacy Fundraiser Sponsors

A O Painting, Inc. A.M.E. Electrical Contracting, Inc. Able Body Labor Able Steel Fabricators, Inc. Ace Asphalt of Arizona, Inc. Action Equipment & Scaffolding Co., Inc. Adobe Drywall, LLC Adobe Paint, LLC Advance Terrazzo Company Aero Automatic Sprinkler Co. AEROTEK Ahern Rentals All American Concrete, LLC All Things Metal All Weather Tempering of Arizona Alliance for Construction Excellence Allied North America Insurance Brokerage Allred Metal Products, Inc. Allstate Utility Construction, LLC Ambient Electric American Fence & Security Co., Inc. Ammex Rebar Placers, Inc. Apodaca Wall Systems Arizona Drywall Co., Inc. Arizona Partition, Inc. Arizona Repair Masons — Arizona Ramjack Arizona Stucco Systems, LLC Arizona Traffic Signal Arok, Inc. Aspen Construction, Inc. Aspen Interiors ATS Electric, Inc. AZ Construction Resources Baker Concrete Construction Ballard Spahr Andrews & Ingersoll, LLP Banker Insulation Barrett-Homes Contractors Bedrock Builders BHK Lien Services, Inc. Blue Book of Building & Construction Border Construction Specialties, LLC Bowman Brothers Concrete, Inc. Britt Law Group PC Brooks Bros Utility Contractors Brown & Brown Insurance of Phoenix Brown & Sons Electrical Contracting, Inc. Brown Wholesale Electric Co. C Bar C Construction, Inc. CALPLY Campbell Printed Communications Canyon Plastering and Drywall Carson Sales Company CBIZ/Mayer Hoffman McCann, PC Ceco Concrete Construction, LLC Charger Construction Charles Court Construction, Inc. Chas Roberts Air Conditioning, Inc. CLP Resources, Inc. Cobra Stucco, LLC Compass Insurance — Schaefer-Smith-Ankeney

Concrete Structures Construction 70, Inc. Construction Tool & Supply Contempo Construction, LLC Corbins Service Electric, LLC Cort Furniture Crane Rental Service, Inc. Creative Business Resources CRSI, Concrete Restoration Systems, Inc. Curran Masonry Corp. D.P. Electric, Inc. DBA Construction, Inc. DCW, Inc. Delta Diversified Enterprises, Inc. Diversified Builder Supply, Inc. Diversified Interiors, Inc. Diversified Roofing Division Nine Contracting, Inc. Double "D" Painting, Inc. Eagle Steel Erectors, Inc. Empire Southwest Enterprise Fleet Services Falcon Plastering, Inc. Five G, Inc. Folk & Associates, PC Freedom Glass, LLC Fyffe Masonry & Plastering, Inc. Galindo Construction, Inc. Gaylor, Inc. GEN-TECH Gilbert Plumbing Graef Construction, Inc. HACI Mechanical Contractors, Inc. Hagen Business Systems, Inc. HarnerEvans, PLC Harris Mechanical Southwest Harris/Arizona Rebar, Inc. Hennesy Mechanical Sales, LLC Hill & Usher Insurance and Surety Holden Willits Murphy Hunsaker & Palecek, PLLC Hyde Electric, Inc. Imperial West, Inc. Indigo Painting Industrial Refrigeration & Boiler Co. Interstate Mechanical Corp.- IMCOR Ironco Enterprises, LLC Irwin Union Bank, FSB J.D. Steel Company, Inc. J.F. Ellis Corporation Jennings, Haug & Cunningham Johnson Controls, Inc. Jones Concrete Construction, LLC J-Rock Drywall Juarez Contracting, Inc. Kaufman Fire Protection Systems KDM Contracting, Inc. Killer Shade Kortman Electric, Inc. Kovach, Inc. KUDZU.Com L & L Asphalt, LLC Lacina Contracting & Painting, LLC

Landscape Construction Services, Inc. Lifestyles Media Group, LLC Lovitt & Touche, Inc. Magnum Companies Maricopa Metals, Inc. Markham Contracting Co., Inc. Marlin Mechanical Corp. Masco Builder Cabinet Group McCoy Glass Products Mechanical Maintenance, Inc. Metro Traffic Control, LLC Meyer & Lundahl Mfg., Inc. Michael L. Riddle Painting, Inc. Midstate Mechanical, Inc. Minard-Ames Insurance Services LLC MKB Construction, Inc. Monsoon Roofing, Inc. Montezuma Paving Morrison & Associates, CPAs, PLLC Moss Adams, LLP National Bank of Arizona National Construction Rentals Navajo Welding Nelson-Holland, Inc. Nexus Steel, LLC Paint-Co Division of Stratford Painting Palo Cristi Stone Co. Palo Verde Drywall, Inc. Parsons Steel Erectors, Inc. Partitions and Accessories Co. Pavement Marking, Inc. Performance Contracting, Inc. Performance Safety Petty's Tile Co., Inc. Phoenix Concrete Cutting Phoenix Pipelines, Inc. Pittman & Murdough, PLLC Prado & Sons Pool Plastering, Inc. Premiere Wood Floors, Inc. Pro Steel Erectors II, Inc. Progressive Concrete Works Progressive Roofing Protection One Reliable Roofing Co. Richard D. Dodd, CPA RICOR, Inc. Road Markings, Inc. Ron's Concrete Construction, Inc. Royal Concrete, Inc. Ruiz Insurance Group, LLC Rummel Construction, Inc. Russell A.C., Inc. Ryan Mechanical Co. Ryley Carlock & Applewhite S & S Paving and Construction, Inc. Sacks Tierney, PA Saguaro Drywall Sandstorm Construction, LLC SCF Arizona Sharp Painting, Inc. Skill Supply, LLC Skinner Interior Systems, Inc. Skyline Steel, Inc.

2008-2009 ASA of Arizona Members

Page 5 Subcontractors Update Bulletin

Smith Pre-Cast Snell & Wilmer, LLP Sombrero Painting, Inc. Southwest Contractor — McGraw-Hill Construction Southwest Slurry Seal, Inc. Star Plastering, Inc. Star Roofing, Inc. StarCity Telesis Strongfield Trimco Contracting Structures Group Southwest, Inc. Sun Valley Masonry, Inc. Suncraft Sunland, Inc. Sunstate Equipment Co. Suntec Concrete Sutter Masonry, Inc. Talis Construction Corp. Taylor Duffy & Associates, PC Top Flite Construction Triad Steel Services, Inc. Tri-V-Paving, LLC Tucson Commercial Carpet Tull Forsberg & Olson, PLC United Rentals, Inc. Universal Piping University Mechanical & Engineering Utility Construction Co., Inc. Vickers/Hari Contracting, Inc. Vic's Welding Co., LLC W & W Architectural Metals, Inc. W. J. Maloney Plumbing Co., Inc. Walls & Ceilings MD, LLC Walters & Wolf Construction Specialties Wheeler Construction, Inc. Willis of Arizona, Inc. WSP, Inc. Yavapai Mechanical, LLC Yellow Jacket Drilling New Member

4105 N. 20th St., Ste. 230 Phoenix, AZ 85016

Phone: (602) 274-8979 Fax: (602) 277-4505 E-mail: asa@asa-az.org

American Subcontractors Association of Arizona, Inc.

Finance Committee 1:30 pm Committee Meeting Location: Pittman & Murdough

June 18 / Thursday

Education & Events Committee 9:30 am Meeting Location: ASA Chapter Office

Networking Social Hosted by CBIZ/ — Mayer Hoffman McCann, PC 4:00—6:00 pm No Charge Advance registration requested. Location: National Bank of Arizona Biltmore Conference Center 6001 North 24th Street, Phoenix June 25 / Thursday

Board of Directors 9:30 am Board Meeting Location: ASA Chapter Office

June 9 / Tuesday

Government Relations- Advocacy Committee 11:30 am Lunch & Networking 12:00 pm Meeting Location: Hill & Usher Training Ctr. 3033 N. 44th St., Ste. 300, Phoenix June 11 / Thursday

Professional Council Workshop “Marketing Your Company to General Contractors” 7:30—9:30 am Location: ASA Chapter Office Membership Committee 11:30 am Committee Meeting Location: ASA Chapter Office June 15 / Monday

Arizona State Contractor Coalition (ASCC) 8:00 am Coalition Meeting Location: ASA Chapter Office

SAVE THE DATE Online Registration for ASA Champion Academy 2009 Online registration for the ASA Champions Academy, Sept. 19-22, at the Hyatt Regency Crystal City in Arlington, Va., is now open at www.asaonline.com For more information, contact ASA at meetings@asa-hq.com or (703) 684-3450, Ext. 1304.

Calendar of Events / June 2009

“The Voice of Arizona Subcontractors”

We’re on the WEB Www.asa-az.org

Carol Floco Executive Director carol@asa-az.org

David Howells Membership Director memberservices@asa-az.org

Ivan Llata Member Support Services office@asa-az.org

2008-2009 Board of Directors Officers: President John Yoder Star Roofing, Inc. President Jeff Banker Elect Banker Insulation Secretary David Beer Sun Valley Masonry, Inc. Treasurer Michael Gatson Pittman & Murdough, PLLC

Imm. Past Kevin Carroll

President Midstate Mechanical, Inc. Directors:

Sheridan Bailey Ironco Enterprises, LLC

Marlin Coffee Magnun Companies, Inc.

Bob Conshue Ambient Electric

Kevin Gaston Ace Asphalt of AZ, Inc.

Ward Jennings Able Steel Fabricators, Inc.

Gayle Knowles Kaufman Fire Protection Syst.

Jim Palecek Hunsaker & Palecek, PLLC

Jim Sienicki Snell & Wilmer, LLP

Vic Pietkiewicz Harris Mechanical Southwest

Dennis Tsonis Lovitt & Touché, Inc.

WINE TASTING AT THE WRIGLEY MANSION

A big THANK YOU to all the firms that sponsored

our May 21 Joint Associations Advocacy Fundraiser at Wrigley Mansion to support the Arizona State Contractors Coalition (ASCC) and our legislative efforts on behalf of the subcontracting industry.