United Contractors Magazine - July 2014

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UCON DC Delegation Pushes for Construction Funding p.12 Recharge, Engage, Develop: UCON’s Napa R.E.D. Focuses on Innovation Leadership p.16 JULY 2014 | ISSUE 7/VOLUME 220 WWW.UNITEDCONTRACTORS.ORG The Battle to Manage and Combat Industry Regulations A Heavy Load

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Cutting Through the Red Tape: Overcoming Environmental and Regulatory Challenges in the Construction Industry

Transcript of United Contractors Magazine - July 2014

Page 1: United Contractors Magazine - July 2014

UCON DC DelegationPushes for Construction

Funding p.12

Recharge, Engage, Develop:UCON’s Napa R.E.D. Focuseson Innovation Leadership p.16

J U LY 2 0 1 4 | I S S U E 7 / V O L U M E 2 2 0W W W. U N I T E D C O N T R A C T O R S . O R G

The Battle toManage and

Combat IndustryRegulations

A HeavyLoad

Page 2: United Contractors Magazine - July 2014

Protect your crew and a whole lot more.

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Page 3: United Contractors Magazine - July 2014

Protect your crew and a whole lot more.

From training your crew on safety regulations to helping you choose the right equipment for the job, our innovative Trench Safety Solutions help increase productivity and lower costs.

Next time you’re underground, count on us to help keep your crew, and your project, safe.

The Underground Equipment Specialist®

UnitedRentals.com/Trench | 800.UR.RENTS

Bakersfield, CA661.631.5777

Fresno, CA

559.442.8989

Hayward, CA510.786.9506

Reno, NV

775.348.0140

Sacramento, CA916.383.7475

San Jose, CA408.224.1052

San Luis Obispo, CA

805.543.0113

Turlock, CA209.632.5084

OAKLEY RD.

SANDY LN.LIVE OAK AVE.

NEROLY RD.

EMPIRE AVE.

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MAIN ST.

Page 4: United Contractors Magazine - July 2014

UNITEDCONTRACTORS

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UNITEDCONTRACTORS m

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United Contractors Magazine (ISSN: 2166-3777) is published monthly, except December, by United Contractors, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. Editorial comments, letters, and article submissions are welcomed and encouraged. Correspondence should be directed to the United Contractors office at the above address, by phone at (925) 855-7900, by e-mail at [email protected] or by fax at (925) 855-7909. Reproduction of editorial material in this issue is permitted if accompanied by proper source credit. Periodicals postage paid at San Ramon, CA and other offices. Postmaster: Send address changes to: United Contractors Magazine, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. © 2014 Published in the U.S.A.

2014 UNITED CONTRACTORS BOARD OFFICERS

President ...............................................Kevin Albanese

Vice President/President-Elect ..............Bruce Daseking

Secretary/Treasurer ..............................Bruce Daseking

Secretary/Treasurer-Elect...................Donna Rehrmann

contentsUNITED CONTRACTORS BOARD OF DIRECTORSKevin Albanese, Joseph J. Albanese, Inc.; Jim Alvey, Appian Engineering, Inc.; Sue Capriola, Silverado Contractors, Inc.; Bruce Daseking, McGuire and Hester; Rich Gates, DeSilva Gates Construction; Michael Ghilotti, Ghilotti Bros., Inc.; Brett Kincaid, O’Grady Paving, Inc.; Thomas Lum, Peterson CAT; Christi Plum, P C & N Construction, Inc. Jeff Prevost, Lockton Companies, LLC; Bob Rahebi, Redgwick Construction Company; Donna Rehrmann, Stomper Company, Inc.; Kim Scruggs, Columbia Electric, Inc.; Hal Stober, Gordon N. Ball, Inc.

UNITED CONTRACTORS COMMITTEE CHAIRSAssociates: Jeff Prevost (Associate Director), Lockton Companies, LLC; Thomas Lum (Associate Director-Elect), Peterson CAT | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Government Relations: Chris Young (Chairman), D.W. Young Construction Co., Inc. | Safety & Insurance: Paul Evans, Ghilotti Construction Co. | Regulatory: Todd Gates, Proven Management, Inc. | Scholarship: Paul Cianciarulo (Co-Chair), Granite Rock Company; Christi Plum (Co-Chair), P C & N Construction, Inc.

UNITED CONTRACTORS STAFFMark Breslin, Chief Executive Officer; Leslie Lord, Deputy Director; Kelly Montes, Executive Assistant; Drew Aversa, Business Development Manager Randy Ruby, Director of Labor Relations; Ruby Varnadore, Labor Contracts Manager; Lucia Sbarro, Labor & Member Services Representative; Steve Geney, Labor Negotiations Consultant; Shelbie Tieman, Director of Finance & Administration; Terese Pollock, Finance Assistant; Angelica Hobbs, Administrative Assistant; Stacy Anderson, Director Communications, Events & Education; Denise Ramirez, Online Services Manager; Joan O’Brien, Education Manager; Jenn Rogers, Senior Manager of Events; Marlo Fregulia, Event Assistant; Michelle Vejby, Publications Manager; Emily Cohen, Director of Government Relations; Kristina Urch, Regulatory Affairs Manager; Kevin Pedrotti, Legislative Advocate; Christopher Lee, Safety Consultant; Tony Dorsa, CARB Consultant

J U LY 2 0 1 4 5

6 UP Front Sharing the LoadBy Mark Breslin, UCON CEO

LABORYour HR/Admin Cheat SheetBy Ruby Varnadore, Labor Contracts Manager

New Affirmative Action RegulationsBy William H. Truesdell, SPHR, The Management Advantage, Inc.

INSIDE the CapitolUCON’s DC Fly-InUCON Political Events: Elevating the IndustryBy Emily Cohen, Director of Government Relations

JULY 2014ISSUE 7, VOLUME 220

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FACES

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16Napa R.E.D.Recharge/Engage/Develop

More Inside:

www.unitedcontractors.org

24 WTF?!26 NEXT GEN28 WE ARE UCON30 LAST CALL

C O N N E C T W I T HU N I T E D C O N T R A C T O R S :

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E N V I R O N M E N TA L A N D REGULATORY CHALLENGES

RED TAPE

UCON DC DelegationPushes for Construction

Funding p.12

Recharge, Engage, Develop:UCON’s Napa R.E.D. Focuseson Innovation Leadership p.16

J U LY 2 0 1 4 | I S S U E 7 / V O L U M E 2 2 0W W W. U N I T E D C O N T R A C T O R S . O R G

The Battle toManage and

Combat IndustryRegulations

A HeavyLoad

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By Mark Breslin,United Contractors CEO

Several years ago I had the remarkable and challenging experience of trekking to Mt. Everest in Nepal. For months in advance I assembled the plan and gear needed to successfully do the trek without freezing, getting (too) sick, dealing with altitude and not keeling over at 19,000 feet. As an independent person who is pretty self-sufficient, I expected to carry out the plan with little or no real outside assistance. Boy, was I wrong.

After landing in a relic of a Twin Otter at the Lukla airport (top five most dangerous airports in the world…) I met Pasang, my Sherpa guide. I had no idea how important his advice and guidance would be over the 23 days of high altitude. I also met Buda Rai, all 105 lbs. of him. He was my porter—a guy who would relieve me of 80+ pounds of gear, carry it all day at altitudes over 15,000 feet and sleep in the open without a sleeping

Sharing the Load

A Nepalese porter walks with his load from Everest base camp in Nepal. Porters walk for weeks, sometimes carrying supplies heavier than their own body weight. (Photo: Laurence Tan/Reuters, Getty Images)

bag at night. From the beginning, it was made clear that I was not going to be able to succeed on my own. It was a very valuable lesson in dependency in accepting that the help and direction of others was required for me to succeed—or at least avoid major discomfort.

This is one of the great challenges of UCON. The ability to forge relationships and trust at a level sufficient for very independent and self-directed leaders and organizations to follow our advice and guidance. Just

Just knowing to ask is one barrier. Trusting that we have the answers and resources is

another. And finally, and perhaps most importantly, is following through and doing what we suggest is the largest and most difficult.

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knowing to ask is one barrier. Trusting that we have the answers and resources is another. And finally, and perhaps most importantly, is following through and doing what we suggest is the largest and most difficult.

I know something about this mindset. Mine didn’t change until around 17,000 feet nearing Everest. After grinding uphill day after day in thin air fueled by yak cheese and tea, I figured I deserved an afternoon nap. I was burnt out and thought a little rest might do the trick. Pasang tells me, “Mr. Mark, this is not a good idea and instead you should hike even higher today. It helps the oxygen in your blood.” In short, I napped and regretted it badly. I woke up with altitude sickness and nausea pretty much hating life. I learned a valuable lesson that day—when others with more expertise make a suggestion, listen carefully and act affirmatively. Whatever the hell Pasang told me for the next three weeks, I did it religiously.

UCON’s role is not unlike that of my Sherpa and porter. We are here to share your load. This month’s focus is on

regulatory challenges and issues—an ever increasing load of complexity, cost (and bureaucratic B.S.) that an individual company can hardly keep up with. But you have to be willing to ask for the help. You have to listen to your guide. You have to embrace the advice that has been carefully crafted to serve your best interests. None of these come naturally to hard driving entrepreneurs. And when the pressure, schedule and fire-fighting of your daily leadership get in the way, it becomes less likely that our resources will be used. But it is as simple as understanding that we are right next to you on your way up and are waiting to take some of the load off you.

Our regulatory team is a premier group. Waiting to take the load off of you with regards to CARB consulting, OSHA problems and issues, storm water permits and training, IIPP updates, HR and labor problems and updates and more. Our sole purpose and reason for existence is to provide you with more time, less hassle and better outcomes. We are here to share the load. Let us do our jobs—you just have to ask. u

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Your HR/Admin Cheat SheetNew Laws to Watch Out for this Summer

Just a reminder of some laws that were passed last year, most of which became effective July 1:

Public Works Contracts—Change to Subcontractor Listing Requirements: Contractors are now required to include the license number of all subcontractors listed in any bid or offer for the construction of any public works project. This is in addition to each subcontractor’s name and business location. UCON’s Standard Agreements already include a line for subcontractor license numbers.

By Ruby Varnadore,Labor Contracts Manager

NEW: Public Works Registration The DIR has begun a new public works contractor registration process, effective July 1, 2014. All contractors who wish to bid and work on public works projects will be required to register and to pay a $300 annual fee. Although registration opened July 1, registration will not be absolutely required until next year: for projects bid on or after March 1, 2015, and for contracts entered into on or after April 1, 2015. Additionally, the first registration will be good through June 30, 2016. See the DIR website for more details—www.dir.ca.gov/DLSE/dlsepublicworks.html, look for “Public Works Contractor Registration” not “Public Works Projects Registration.”

Expansion of Paid Family Leave: The scope of paid family leave (PFL) has been expanded to provide wage replacement benefits for time off taken to care for a seriously ill grandparent, grandchild, sibling or parent-in-law. (As a reminder, PFL is not a protected right to a leave of absence, but a partial wage replacement for California workers during a qualifying absence). There is no change to the required poster, but be sure to use updated pamphlets for employees at the time of hire and when requesting leave for a covered reason (DE 2511, available from www.edd.ca.gov).

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Your HR/Admin Cheat SheetNew Laws to Watch Out for this Summer

Workers’ Compensation— Pre-Designation Forms: New regulations change the employee criteria on pre-designations for work-related injuries/illnesses. See your workers’ comp carrier to get updated pamphlets and forms, or go to www.dir.ca.gov/dwc.

Heat Illness Prevention Recovery Periods: This law became effective January 1 but has not garnered much attention yet. The Cal/OSHA “heat illness recovery periods” were added to Labor Code Section 226.7, enabling the assessment of employer penalties when such recovery periods are not provided. UCON is continuing to work with other industry groups for greater clarification and guidance from the DLSE. Additionally, UCON and other associations have been working to include language in collective bargaining agreements to require use of the grievance procedure for such claims, on a par with meal and rest periods.

S.F. Fair Chance Ordinance: San Francisco has added yet another layer of labor compliance, effective August 13, 2014. Employers doing business in S.F. who have 20 or more employees (regardless of the location of those employees) will be required to follow strict rules with regards to information requests related to job applicants’ and employees’ criminal history. The Ordinance also applies to City contractors, subcontractors and leaseholders. Check the San Francisco Office of Labor Standards Enforcement (OLSE) website (www.sfgov.org/olse) for further details and a copy of the required employee notice.

California Minimum Wage Increase: The state minimum wage increases from $8.00 to $9.00. Make sure that your minimum wage employer postings reflect this. Also, for office or other non-union employees:• Any hourly employees must be paid at least the

minimum wage. This includes part-time employees, family members who are helping out, etc.—anybody on your payroll who is not covered by a collective bargaining agreement that specifies wages above the minimum wage.

• Exempt employee salaries must be reviewed in accordance with the increase to make sure that they meet the minimum salary of at least twice the minimum wage for full-time employment on a monthly basis (CA Labor Code Section 515). u

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New Affirmative Action Regulations for Construction Contractors

LABOR

October 20, 1978 was the last time federal regulations were changed for construction contractors engaged in federal projects. That is until this year. The same sixteen steps for minorities and women’s affirmative action are required today as were required at that time. A big part of compliance is the employer’s proper documentation of those sixteen steps. It’s not enough to do what is required. It is also necessary to document those actions to prove you have done what’s required. Failure to document can result in a conciliation agreement if you are audited by the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). And OFCCP is targeting construction contractors, big and small.

As of March 24, 2014, we have some new requirements added to those sixteen steps. Construction contractors are now subject to the latest rules regarding hiring disabled and protected veterans.

Who is a covered contractor?• Minorities and Women Affirmative Action for

Construction Contractors: Applies to all contractors and subcontractors which hold any federal or federally assisted construction contract in excess of $10,000. Requirements apply to all craft worker categories on all work sites, not just the federally funded work site. The goal for women in all trade jobs is 6.9% nationwide. The goal for total minorities fluctuates based on the location in which your jobs work. In San Francisco-Oakland, for example, the goal for minorities is 25.6%. In Atlanta, it is 21.2% and in Denver it is 13.8%. The entire table of locations can be obtained at http://www.dol.gov/ofccp/TAguides/consttag.doc. That link will bring up the official Technical Assistance Guide for Federal Contractors and will help you with the program requirements for minorities and women.

By William H. Truesdell, SPHR,The Management Advantage, Inc.

• Disabled Affirmative ActionApplies to all contractors and subcontractors which hold any federal or federally assisted construction contract in excess of $10,000. Requirements apply to all work sites.

• Veteran Affirmative ActionApplies to all contractors and subcontractors which hold any federal or federally assisted construction contract in excess of $100,000. Requirements apply to all work sites.

What are the new requirements for disabled and veterans Affirmative Action Plans?• Construction contractors will now have to prepare

the narrative sections required by the regulations at 41 CFR 60-300.44 for Veterans and at 41 CFR 60-741.44 for Disabled.

• There are new forms for inviting applicants and employees to self-identify their status as disabled or as protected veterans.

• There is a utilization goal of 7% for disability that applies to each job (trade) category. Contractors with 100 or fewer total employees may apply the utilization goal to the total workforce if they wish. OFCCP says this is aspirational, not a quota.

• There is a benchmark goal for protected veterans that applies to the entire workforce and will be adjusted by the OFCCP each year. For 2014 the benchmark is 7.2%. You can compute your own benchmark by using the information provided by OFCCP at their page on the Veterans Benchmark Database at http://www.dol-esa.gov/errd/VEVRAA.jsp. That may or may not yield a more favorable benchmark goal than the overall goal they offer. OFCCP says this is also aspirational, not a quota.

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Looking for More Information?UCON members can access the full version of this article, including specific guidance on compliance with the new regulations, a link to forms referenced in the article, and definitions of protected veterans and disabilities. The article is located in the Contractor Resource Center (www.unitedcontractors.org/resources.asp), under Other HR Forms.

Some Additional ConsiderationsBased on the way OFCCP has applied the regulatory requirements in audits, representation of minorities and women will be calculated based on the hours actually worked on each construction site. If a contract spanned more than one site, you could make an argument to compute representation for the overall contract.

The new veteran benchmark goal should be computed based on the total craft/trade payroll.

Individual job categories should be used for computing disabled utilization if there are more than 100 individuals on the payroll. If there are fewer employees, disability utilization should be computed based on total craft/trade payroll.

ConclusionUltimately, if you wish to receive federal revenue through prime or subcontracts, you will need to consider how to meet these new requirements for employment of people with disabilities and protected veterans. Since these are legal issues, you should consult with your legal counsel before taking action. Costs involved with compliance must be built into the bids and proposals you submit. As you obtain more contracts, the incremental costs of compliance are not very great. Establishing the data tracking systems and communication programs will take some time initially. Once you have them in place, you can use them for as many contracts as you might win. u

William H. Truesdell, SPHR is President of The Management Advantage, Inc. specializing in affirmative action consulting for both construction contractors and contractors for goods and services. He can be reached at (925) 671-0404 or [email protected]

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UCON DC Delegation Pushes Federal Highway Funding for CA

INSIDE The

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United Contractors Washington D.C. delegation joined Transportation advocates from all over the country to meet with lawmakers and discuss highway funding at the Transportation Construction Coalition’s (TCC) 2014 Legislative Fly-In last month. During meetings, UCON members focused in on a key theme: “The Time is Now: Fix the Highway Trust Fund,” urging our CA members of Congress to find a solution before the Highway Trust Fund becomes insolvent, which is expected to happen by the end of August. The current highway bill, MAP-21, expires at the end of September.

The Obama administration has proposed a 4-year highway bill that aims to address the HTF shortfall, and the Senate is considering a 6-year bill that would

provide greater transparency of HTF use. Congress has the opportunity to fix the HTF this year and now is the time for them to act. You can take action too! Contact your Member of Congress and encourage their support of a long term, fully funded bill to support the HTF:http://cqrcengage.com/unitedcontractors/home. u

Photo at top of page: the 2014 UCON Delegation on Capitol Hill (from top left) Robert Chrisp, Chrisp Company, Man-Li, UCON Government Relations Assistant; Michael Quigley, CA Alliance for Jobs; Matt Maes, Joseph J. Albanese, Inc.; (front row from left) Rodney Jenny, Granite Rock Company; Jose Mejia, CA State Council of Laborers; Robert Fried, Atkinson, Andelson, Loya, Ruud & Romo; Emily Cohen, UCON Director of Government Relations.

Photo at left: UCON Delegation with Congressman Mike Thompson (CA–5th District)

Photo at left bottom: UCON Delegation with Congressman Eric Swalwell (CA–15th District)

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UCON DC Delegation Pushes Federal Highway Funding for CA Above photo: UCON Delegation meets with David Napoliello, Director of

Infrastructure and Economic Development for the Senate Committee on Environment and Public Works to discuss concerns with, and solutions for, the Federal Highway Trust Fund and MAP 21 Reauthorization.

Legislative Director, U.S. House of Representatives, Kevin Eastman, UCON’s Emily Cohen, Congressman Doug LaMalfa (CA–1st District), and Michael Quigley, Deputy Director for the CA Alliance for Jobs.

Left: Congressman John Garamendi (CA–3rd District) steps out of the House Transportation Committee Hearing to speak with members of UCON about the Highway Trust Fund.

Right: UCON’s Government Relations Team with Transportation Committee Member and longtime infrastructure advocate, Congresswoman Janice Hahn (CA–44th District). From left: Government Relations Assistant, Man-Li Lin Kelly, Regulatory Affairs Manager, Kristina Urch, Congresswoman Hahn, and Director of Government Relations, Emily Cohen.

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On June 4, UCON hosted a distinguished dinner in support of Toni Atkins, Speaker of the CA Assembly. Other special guests in attendance included Assembly Member Jim Frazier (11th District), Assembly Member Susan Bonilla (14th District), Randy Iwasaki, Executive Director of the Contra Costa Transportation Authority and former Senator Pro-Tem, Don Perata. UCON was also joined by SCCA and the CA Infill Builders Foundation. Before introducing Speaker Atkins, Mark Breslin, UCON CEO, reflected on the growth of the Association over the last four decades. “This association started with 4 contractors getting together in a garage, determined to create better representation for union-affiliated contractors. 40 years later, UCON is the largest union-affiliated contractors association west of the Mississippi, and we remain committed to elevating the industry.”

THANK YOU TO OUR SPONSORS FOR THEIR DEDICATED SUPPORT OF THIS EVENT:

HOST SPONSOR —Rich Gates, DeSilva Gates Construction

DIAMOND SPONSORS —CA Infill Builders FederationSouthern California Contractors Association (SCCA)

PLATINUM SPONSORS —D.W. Young Construction Co., Inc.Ghilotti Bros., Inc.Granite Rock CompanyJoseph J. Albanese, Inc.O.C. Jones & Sons, Inc.

UCON remains steadfast in its efforts to find long term solutions to help build and maintain California’s vital infrastructure systems and to support the tens of thousands of employees who perform this work. UCON is committed to working with Members of the Legislature and to build upon our efforts to help policy makers in Sacramento connect the dots between policies that support our industry along with those that support a strong economy, middle class jobs and safe and secure infrastructure for all Californians. u

GOLD SPONSORS —Bauman Landscape and Construction, Inc.Bay Cities Paving & Grading, Inc.California Engineering Contractors, Inc.Chrisp CompanyColumbia Electric, Inc.GALLINA LLPGordon N. Ball, Inc.Knife River Construction - StocktonMcGuire and HesterMCK Services, Inc.Peterson CATStomper Company, Inc.Top Grade Construction, A Goodfellow Bros. CompanyTri-West Tractor, Inc.Vanguard Construction

SILVER SPONSORS —Condon-Johnson & Associates, Inc.Redgwick Construction Company

UCON Political EventsElevating the Industry

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More than 40 UCON Members attended the San Francisco based fundraiser reception in support of Supervisor David Chiu, Candidate for the 17th State Assembly District. Immediately before introducing Supervisor Chiu to speak, reception host, George Furnanz, President of Stacy and Witbeck, Inc., told the crowd, “We need more leaders in Sacramento who will make infrastructure a real priority, but those leaders don’t get elected without us. We have to act as active participants in our own industry by fighting to elect those who will protect our future and strength of our state.”

THANK YOU TO THE EVENING’S SPONSORS:

HOST SPONSOR —George Furnanz, Stacy and Witbeck, Inc.

PLATINUM SPONSORS —Laborers’ Local 291K.J. Woods Construction Company, Inc.Malcolm DrillingSouthern California Contractors Association (SCCA)Stomper Company, Inc.

CO-HOST SPONSORS —Anvil BuildersBauman Landscape and Construction, Inc.Con-Quest Contractors, Inc.D.W. Young Construction Co., Inc.Andy DanielsEsquivel Grading & Paving, Inc.Ghilotti Bros., Inc.McGuire and HesterShimmick Construction Company, Inc.S.J. Amoroso Construction Co., Inc.Bradley Wright

“When it comes to supporting Supervisor “Chiu for State Assembly, the UCON PAC Committee was unanimous. Unlike his opponent, he has a strong and clear record of leadership on major infrastructure projects throughout the city of SF. We believe he will continue to provide that kind of leadership in Sacramento.” — Chris Young, D. W. Young Construction Co., Inc., UCON PAC Committee Member, and UCON Past President

GOLD SPONSORS —Bauman Landscape and Construction, Inc.Bay Cities Paving & Grading, Inc.California Engineering Contractors, Inc.Chrisp CompanyColumbia Electric, Inc.GALLINA LLPGordon N. Ball, Inc.Knife River Construction - StocktonMcGuire and HesterMCK Services, Inc.Peterson CATStomper Company, Inc.Top Grade Construction, A Goodfellow Bros. CompanyTri-West Tractor, Inc.Vanguard Construction

SILVER SPONSORS —Condon-Johnson & Associates, Inc.Redgwick Construction Company

If you are interested in learning more about ways you can get involved in UCON’s advocacy efforts and political events, contact Emily Cohen, Director of Government Relations at (925) 362-7304.

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FACESNapa R.E.D. Recharge/Engage/DevelopOver 100 UCON Members joined forces in Napa to unWINEd at Napa R.E.D. on May 29-30th. The event kicked off with a gourmet ‘wine and dine’ experience at Silver Oak Cellars, and finished at the Villagio Inn & Spa with a business meeting focusing on Innovation Leadership: giving attendees’ organizations a competitive edge.

“The Napa R.E.D. gathering strikes a great balance between social activities and business learning. On Thursday, we mingled with industry people, renewing old friendships, and meeting new people, many of whom we knew by name but had never met before. Friday we participated in an effective and thought provoking strategy session. As usual, the UCON team sets a high standard.”—Rodney Jenny, Granite Rock Company

“Both years, Mark Sherwood with FMI has been excellent with his presentations getting everyone engaged and involved in meaningful discussions on real topics that can have immediate use at the office.”—Keith Bizzack, Condon-Johnson & Associates, Inc.

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THANK YOU TO OUR SPONSORS:

PLATINUM SPONSOR —Ghilotti Bros., Inc.

GOLD SPONSORS —Ghilotti Construction Co.Joseph J. Albanese, Inc.Peterson CATR & B CompanySweeney, Mason, Wilson & BosomworthUnited Rentals Trench Safety

SILVER SPONSORS —Aon Construction Services GroupBauman Landscape and Construction, Inc.Chrisp CompanyGALLINA LLPMidstate Barrier, Inc.Moss Adams LLP

BRONZE SPONSORS —Arthur J. Gallagher Insurance Brokers of California, Inc./Gallagher Construction Services

Page 18: United Contractors Magazine - July 2014

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special feature

E N V I R O N M E N TA L A N D REGULATORY CHALLENGES

RED TAPE By Tony Dorsa,UCON CARB Consultant

40 years ago, when UCON was formed, it primarily served to negotiate union contracts and assist contractors with other union-related labor matters. However, with time, UCON expanded to serve members in a great deal of areas, none more important than regulatory advocacy and compliance assistance. Over the past decade, as the California environmental regulatory structure became a myriad of “red tape” and overlapping agencies, UCON adjusted accordingly, evolving into a pro-active, strongly engaged voice for our members on these issues. As the saying goes: “If you don’t have a seat at the table, you’re lunch.” What is better than a group of voices advocating for industry? An even larger group of voices advocating for industry. UCON began to reach out to other contractor associations and groups throughout California to form an industry coalition of voices. As

Industry’s Regulatory HurdlesWhere We’ve Been, and Where We’re Heading

Board members of the Construction Industry Air Quality Coalition (CIAQC) and the Construction Industry Coalition on Water Quality (CICWQ), we meet monthly to discuss and act upon matters of interest to our members and member-contractors state-wide. Many of the consultant members and staff personnel formerly held positions with local and state agencies, and are an invaluable resource in obtaining audiences with top level governmental and agency officials on matters of mutual concern. Today, UCON is a leading voice of influence for industry in the implementation of major revisions to the In Use Off-Road Diesel Regulations, including the recent major revisions to the Truck and Bus Regulations (April 2014); Pending Revisions to the Carl Moyer Grants and Incentive Program, allowing more companies access to funding for equipment replacements and retrofits; and the pending re-vamping of the Water Quality Guidelines viz. construction-related activities. As critical stakeholders in the implementation of environmental regulations, it is important to maintain our improved avenues of approach. We continue to work with CARB in an effort to improve their outreach efforts by hosting classes of importance to our members. All of these classes have sold out.

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At the local level, an equally important aspect of regulatory compliance, United Contractors is a leading voice for industry in Northern California, meeting regulatory officials and providing key input with local agencies and air districts in discussions surrounding preliminary considerations on proposed rule changes and new procedural guidelines. While advocacy, input and testimony at the state and local level is a vital part of our job and service to our members and industry, it is the direct assistance we provide our members that remains Priority-One.

Our members deserve a dividend on their annual investment in UCON, and that is what we continue to focus on. If you need compliance assistance, training, or any additional information, please do not hesitate to contact our Regulatory Team. u

Contact Tony Dorsa, UCON CARB Consultant, at [email protected] or (408) 649-4383, or Kristina Urch, UCON Regulatory Affairs Manager, [email protected], (925) 362-7318.

“Without UCON, a contractor would be much more likely to go afoul of some regulation that they might not even know existed; or if they knew existed, how to comply with.” —Rod Michaelson, Bay Cities Paving & Grading, Inc.

“UCON has done a great job of helping us to both navigate the current CARB requirements and also plan for future expectations. They are truly experts in the field and it’s encouraging to know that we have them as a resource.”—Jody Pawlicki, ProVen Management, Inc.

Take Action — Get InvolvedJoin our UCON Regulatory Committee which exists to generate ideas and deal with the ever changing regulatory compliance issues. Participate in the regulatory rulemaking process to promote and protect member interests and voice industry concerns over burdensome regulations. This committee promotes relationship building with public agency officials, and works to implement construction related regulatory changes to create an optimal business environment. Contact Kristina Urch, Regulatory Affairs Manager at [email protected] or (925) 362-7318.

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special feature

E N V I R O N M E N TA L A N D REGULATORY CHALLENGES

RED TAPEWhat do polar ice caps, rising sea levels & bigger storms have to do with gas prices?Plenty! Global warming and changes to the earth’s climate have prompted state and federal agencies to adopt regulations to reduce greenhouse gas emissions. Since 40 percent of all greenhouse gas emissions – carbon dioxide mostly—are produced when gasoline and diesel is burned in vehicles, these regulations will eventually impact the cost of supplying fuels to California consumers. California has adopted the most far reaching climate change regulations in the nation, although other states are considering similar policies.

A goal of the California regulations is to reduce the amount of gasoline and diesel we use. Those regulations—a statewide cap and trade program and a low carbon fuel standard—will dramatically

Climate Change 101California Regulations & Their Impact on Fuels

change California’s energy economy. And that means big changes are ahead for fuel users.

Cap & TradeAssembly Bill 32, adopted in 2006, requires large energy users in California to reduce total greenhouse gas emissions to 1990 levels by 2020. To implement AB 32, the California Air Resources Board (CARB) adopted regulations that place a cap on greenhouse gas emissions from major energy users like petroleum refineries and a trading system that allows them to buy and sell emission allowances.

Currently, the cap and trade requirements only apply to the emissions from the refineries themselves. According to a study by the Boston Consulting Group (BCG), the cap and trade system in effect today will add 2 cents to 8 cents to the cost of making a gallon of gasoline and diesel fuel. (The cost estimates vary because cap and trade systems let market mechanisms set the price for emission allowances, making it impossible to be precise in forecasting costs.)

In 2015, the 14 refineries that make all of the gasoline and diesel for California will be required to also purchase emission allowances for the emissions produced by gasoline and diesel powered cars and trucks. The BCG estimates this provision will add another 14 cents to 69 cents to the cost of a gallon of gasoline.

Information compiled by:Ramos Oil Co., Inc.

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Low Carbon Fuel Standard (LCFS)In addition to the cap and trade system, the Air Resources Board also adopted a Low Carbon Fuel Standard regulation that requires fuel producers to lower the carbon content of gasoline and diesel. As a practical matter, the only way to reduce the carbon content of petroleum fuels is blend them with lower carbon biofuels like ethanol or biodiesel.

California Gasoline & Diesel PricesPeople often ask why California gasoline and diesel prices are higher than other states. It’s a good question. In 2012, the average cost of a gallon of gasoline in the US was $3.68. In California, the average cost for gas was $4.08 per gallon—40 cents more. (The average cost for diesel in California was 26 cents per gallon higher than the US average).

According to numerous studies, California’s environmental regulations are another reason gasoline and diesel tends to cost more here along with generally higher costs of living.

Because California is such a large consumer of transportation fuels—43 million gallons of gasoline and 14 million gallons of diesel every day—there is not enough low carbon biofuel available to meet the LCFS requirements.

The BCG has warned that the LCFS is not a feasible regulation and could result in fuel shortages and price spikes in the 2015 timeframe. The study said the LCFS regulation will likely add another 33 cents to $1.06 to the cost of making a gallon of gasoline with price spikes of up to $2.50 per gallon possible.

Climate Change, Regulations & YouClimate scientists, environmental regulators and many state and federal elected officials believe climate change is the number one challenge we face in coming years. In California, which contributes to about 1 ½ percent of global greenhouse gas emissions, the state has taken the lead in adopting aggressive regulations to address the issue. Not only is the state attempting to reduce greenhouse gas emissions to 1990 levels by 2020, it is attempting to cut those emissions another 80 percent by 2050.

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special feature

E N V I R O N M E N TA L A N D REGULATORY CHALLENGES

RED TAPEClimate Change 101 (cont.)

Increased Cost To Manufacture A Gallon of GasolineRegulation Cost Per Gallon Refineries ImpactedCap & Trade: Refineries + 2 cents to 8 cents 14 refineries in operationCap & Trade: Fuels +14 cents to 69 cents As few as 7 refineries in

operationLow Carbon Fuel Standard +33 cents to $1.06 NA

These regulations will have a major impact on every Californian. In the near future, we can expect to see much higher gasoline and diesel costs. Eventually, if we are to achieve the goal of 80 percent reductions by 2050, we will need to change companies, the effort to address climate change will

impact everyone. u Visit www.ramosoil.com, a UCON member since 2013, or www.cioma.com, for additional information.

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Increased Cost To Manufacture A Gallon of GasolineRegulation Cost Per Gallon Refineries ImpactedCap & Trade: Refineries + 2 cents to 8 cents 14 refineries in operationCap & Trade: Fuels +14 cents to 69 cents As few as 7 refineries in

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24 W W W. U N I T E D C O N T R A C T O R S . O R G

WTF?!AB 2416 (Stone) would permit an employee to record and enforce a priority lien against an employer’s real or personal property at which the employee performed work, for an alleged, yet unproven, wage claim.

Under AB 2416 an employee has no burden to provide any actual evi-dence that an employer violated any wage and hour law. He may base his claim simply on his beliefs that he has a valid wage claim against the employer. EVEN MORE, under AB 2416, there are no penalties or con-sequence if an employee files a lien improperly, fails to withdraw the lien or refuses to withdraw the lien. The employer must petition the court for removal of the lien before being able to fully utilize their property.

AB 2416 is one of 2014’s most egregious bills. It would subject employers to constant extortion in order to avoid dealing with a lien on their prop-erty. And it leaves us wondering, Assembly Member Stone, WTF?! u

Legislation That Would Allow Employees to File Liens for Alleged Wage Claims?

You can take action on upcoming legislation. Get involved by contacting your Member of Congress. UCON makes it easy to engage at:http://cqrcengage.com/unitedcontractors/home.

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Page 25: United Contractors Magazine - July 2014

October4 Competent Person Trenching Saturday, October 4, 2014, 8:00am-4:00pm $90 Member / $115 Non-member OSHA Training Center, Dublin

9 Fearless Foreman Seminar Thursday, October 9, 2014, 6:00pm-8:00pm $99 Member / $199 Non-member Marriott, Pleasanton

November8 Government Relations Dinner & Auction Saturday, November 8, 2014, 5:00pm $130 Member / $160 Non-member Craneway Pavillion, Richmond Marina

J U LY 2 0 1 4 25

UCON CALENDAR

For details, online registration,and additional events/meetings:www.unitedcontractors.orgQuestions? Call (925) 855-7900

August7 Annual BBQ & Chili Cook-Off Thursday, August 7, 2014, 4:30pm $60 Member / $90 Non-member Alameda County Fairgrounds, Pleasanton www.unitedcontractors.org/bbq

September

Sal Rubino Golf Classic Friday, September 12, 2014, 8:30am (shot-gun start)$250 Member / $300 Non-member Bayonet and Black Horse Golf Club,Seaside

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Legislation That Would Allow Employees to File Liens for Alleged Wage Claims?

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Page 26: United Contractors Magazine - July 2014

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By Joan O’Brien,Education Manager

Leadership GenerationUCON’s PMCA Program Produces Results United Contractors Project Management Career Advancement (PMCA) Program graduated 29 students from 14 member companies on May 20th at the Crow Canyon Country Club in Danville.

Instructors for the program included: Michael Riley of Team Building; Shirley Ramos and Steve Isaccs, FMI Corporation; Janette Leonidou and Bob Rosin of Leonidou & Rosin Professional Corporation; Mark Breslin of UCON; Jake Concannon and Kevin Re of Gallagher Construction Services and Julian Xavier of Gallina LLP. UCON thanks all of you for making the PMCA program a great success. In addition, UCON would like to thank all of our member companies for sending their employees

through the PMCA program and for investing in our leaders of tomorrow.

“It’s a great opportunity to extend your education and build relationships with peers within the construction industry.” — Cameron Regain, Joseph J. Albanese, Inc.

“Great way to interact with your peers and learn about other facets of the industry you wouldn’t learn anywhere else.” — Michael Wright, RGW Construction, Inc.

“Extremely rewarding class, many great speakers and topics covered in the construction industry that are useful in our everyday jobs.” — Chase McPhaul, Ghilotti Bros., Inc.

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By Denise Ramirez,Online Services Manager

Get Creative with Your Educational FinancesApply now for a UCON Scholarship

Applications are available for our 2014 Scholarship Awards Program. Celebrating our 20th year of giving back, UCON is proud to be distributing a total of $23,000 to two eligible groups:

1. UCON affiliates studying any major (employees, spouses, domestic partners, or dependents of a member company)

2. California college students majoring in civil engineering or construction management

For more details on eligibility, visit www.unitedcontractors.org/scholarship and make sure to submit your applications by Friday, April 25, 2014. If you have any questions regarding the program, contact Denise Ramirez at (925) 362-7308, or email [email protected]. u

20-for-20 Campaign2014 marks the 20th Anniversary of UCON’s Scholarship Awards Program.Donate $20 to the Program, and help fund the next generation of construction. Since 1994, UCON’s Scholarship Program has awarded $295,000 to member affiliates and future construction leaders. Give today at unitedcontractors.org/scholarship

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J U LY 2 0 1 4 27

Congratulations and thank you to the following 2014 PMCA Graduates for dedicating their time to attend and provide constructive feedback to help improve future programs:

Alexis Ayers, Joseph J. Albanese, Inc.Ken Bilbo, Ghilotti Bros., Inc.John Bridges, O.C. Jones & Sons, Inc.Kevin Delaney, Top Grade Construction, A Goodfellow Bros. CompanyJoe Dodds, Gordon N. Ball, Inc.Erica Feiger, Gordon N. Ball, Inc.Catrina Garcia, Joseph J. Albanese, Inc.Adam Gehlert, Gordon N. Ball, Inc.Kelsey Kress, Ghilotti Bros., Inc.Josh Kucek, Platinum Pipeline, Inc.Korey Marr, RGW Construction, Inc.Chase McPhaul, Ghilotti Bros., Inc.

Travis Miller, Redgwick Construction CompanyMegan Montano, Babcock InsuranceSiavash Motlagh, Condon-Johnson & Associates, Inc.Mike Nash, Joseph J. Albanese, Inc.Matt Orlando, Top Grade Construction, A Goodfellow Bros. CompanyFernando Pacheco, Redgwick Construction CompanyJeff Phelps, Ghilotti Bros., Inc.Trevor Pierson, Top Grade Construction, A Goodfellow Bros. CompanyCameron Regain, Joseph J. Albanese, Inc.Sergio Rubio, GraniterockJoe Salamida, GraniterockWalter Sanchez, Ransome CompanySteve Shimmin, Lewis and Tibbitts, Inc.Ryan Tenney, GraniterockHank Thorton, Joseph J. Albanese, Inc.Cody Weeks, Sierra Mountain ConstructionMichael Wright, RGW Construction, Inc.“

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UCON

40 YEARS – 1974Contractor Member:Silva’s Pipeline, Inc.Jim Silva

23 YEARS – 1991Associate Member:Wells Fargo InsuranceServices USA, Inc.Donna Revis

22 YEARS – 1992Contractor Member:Stoloski & Gonzalez, Inc.Mark Stoloski

20 YEARS – 1994Contractor Member:Navajo Pipelines, Inc.Karen Silva

Associate Member:Woodruff-Sawyer & Co.Bret Lawrence

19 YEARS – 1995Associate Member:GraniterockKeith Severson

18 YEARS – 1996Contractor Members:Appian Engineering, Inc.Bob Alvey

R.M. Harris CompanyDavid Harris

14 YEARS – 2000Contractor Member:Silverado Contractors, Inc.Joe Capriola

Associate Member:IronPlanetPaul Hanson

12 YEARS – 2002Associate Member:Mechanical Rebar TestingTiffany Garland

11 YEARS – 2003Associate Member:Trench & Traffic Supply, Inc.Michelle Townsend

7 YEARS – 2007Contractor Member:Florez PavingSam Florez

Associate Member:Eighteen Trucking, Inc.Martha DeLeon

6 YEARS – 2008Contractor Member:Blue Iron, Inc.Melissa Baker

5 YEARS – 2009Associate Member:EPICDavid Alvarado

4 YEARS – 2010Contractor Members:MK Pipelines, Inc.Sean Brennan

Springline, Inc.Michael Fredenburg

Associate Members:Badger Daylighting Corp.Nick Azevedo

HCSSGenaro Garza

3 YEARS – 2011Contractor Members:J. Mack Enterprises, Inc.Jerry McElree

MDR Inc. dba ACCU-BoreDirectional DrillingMichael Robirds

Associate Member:Stevenson SupplyRod Stevenson

2 YEARS – 2012Contractor Members:Compass EngineeringContractors, Inc.Mike Moore

Marques Pipeline, Inc. Jason Anderson

Associate Members:Cal-Sierra Pipe, LLCSteve Dunn

Chubb SuretyRobert Walsh

McSherry & HudsonChuck Griswold

1 YEAR – 2013Contractor Members:Pixley Construction, Inc.Chuck Pixley

Underground Construction Co., Inc. Chris Ronco

Valverde Construction, Inc. Marcus Gomez

Wave Excavation LLC Michael Clark

Associate Member:ACE USA - SuretyEric Altman

JULY MEMBER ANNIVERSARIESUnited Contractors would like to take this opportunity to recog-nize and thank the following companies who are celebrating their anniversary of membership with our organization in July:

21 YEARS – 1993Contractor Members:C.F. Archibald Paving, Inc.Bill ArchibaldEsquivel Grading & Paving, Inc.Ralph EsquivelEvans Brothers, Inc.Wil EvansGallagher & Burk, Inc.David DeSilvaGhilotti Construction Co.Richard GhilottiStevens Creek Quarry, Inc.Richard Voss

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Page 29: United Contractors Magazine - July 2014

N O V / D E C 2 0 1 3 35

4 YEARS – 2010Contractor Members:MK Pipelines, Inc.Sean Brennan

Springline, Inc.Michael Fredenburg

Associate Members:Badger Daylighting Corp.Nick Azevedo

HCSSGenaro Garza

3 YEARS – 2011Contractor Members:J. Mack Enterprises, Inc.Jerry McElree

MDR Inc. dba ACCU-BoreDirectional DrillingMichael Robirds

Associate Member:Stevenson SupplyRod Stevenson

2 YEARS – 2012Contractor Members:Compass EngineeringContractors, Inc.Mike Moore

Marques Pipeline, Inc. Jason Anderson

Associate Members:Cal-Sierra Pipe, LLCSteve Dunn

Chubb SuretyRobert Walsh

McSherry & HudsonChuck Griswold

1 YEAR – 2013Contractor Members:Pixley Construction, Inc.Chuck Pixley

Underground Construction Co., Inc. Chris Ronco

Valverde Construction, Inc. Marcus Gomez

Wave Excavation LLC Michael Clark

Associate Member:ACE USA - SuretyEric Altman

J U LY 2 0 1 4 29

VACUUM TRAINING & CERTIFICATION

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Page 30: United Contractors Magazine - July 2014

CALLLAST

Cutting Through the RED TAPEUCON can help your business comply, manage, or even fight, industry’s ever-changing regulations.

www.unitedcontractors.org30 W W W. U N I T E D C O N T R A C T O R S . O R G

top 10 violations resulted in citations issued in FY 2013. Don’t let it happen to you! You’ve got questions—UCON has the experts! For Federal and Cal/OSHA consultation, input and assistance, contact UCON’s Safety Consultant, Christopher Lee, (510) 821-0242, [email protected].

Cal/OSHA’s 42,502

In 2013, assessed in penalties (agency wide; www.arb.ca.gov/enf/reports/2013_summary.pdf). Concerned with Compliance? So are we. For CARB compliance assistance and support, contact UCON CARB Consultant, Tony Dorsa, (408) 649-4383, [email protected]

CARB

There are in CA making critical water quality decisions for their regions including setting standards, issuing permits, determining compliance, and taking appropriate enforcement. Having trouble staying above water on SWPPP regulations? UCON offers SWPPP compliance assistance, guidance and training. Contact Kristina Urch, UCON’s Regulatory Affairs Manager, (925) 362-7318, [email protected].

9 Regional Water Control Boards

There are nearly licensed contractors in CA. Your business depends on your accurate and up to date license. Got questions? UCON provides CSLB assistance, guidance and advocacy. Contact Emily Cohen, UCON’s Director of Government Relations, (925) 362-7304, [email protected].

300,000 California’s burden index is the average for state legislatures nationwide—making it the most costly, complex and uncertain in the nation. From the employer to the employee, UCON University Programs offer unparalleled training with flexibility to meet your compliance needs. Contact Joan O’Brien, UCON Education Manager, (925) 362-7313, [email protected] (Source: http://www.cbrt.org/regulatory-reform/)

Regulatory 4x

Before You Dig. UCON actively participates on multiple committees with the California Common Ground Alliance and works with legislators and various stakeholders to ensure safe digging practices and accountability to ensure our members are protected! Contact Kristina Urch, Regulatory Affairs Manager, (925) 362-7318, [email protected].

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Page 31: United Contractors Magazine - July 2014

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