ASA of Arizona, Inc. 4105 N. 20th Street

Suite 230

Phoenix, AZ 85016

(602) 274-8979

Subcontractors

Update

Bulletin

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

Inside this issue:

Arizona’s Roosevelt

Dam Celebrates

Centennial

2

Outdoor Workers

Need to be Aware

of Stinging Insects,

Biting Snakes

3

President McLaughlin:

‘Our Association Has

Renewed the Promise

of ASA’

4

Lovitt & Touché

Celebrates

its 100 Year

Anniversary

4

Communications

Monitoring Presents

Potential Liability

Exposure

5

Summary of 2010

Amendments to

Arizona Prompt

Payment Act

6

ASA Members:

Download ASA’s

Updated Bidding and

Negotiating Tools

7

Red, White &

Brew—Take 2 8

Gilbane Building

Company Announces

Nationwide Adoption

of the Textura CPM

10

Sea of Contractors

Seek Bullet

Train Work

10

ASA of Arizona

Member Roster 11

Calendar of Events 12

April 2011 Subcontractors Update Bulletin Subcontractors Update Bulletin April 2011

2010-2011 Chapter Sponsors

The current chapter bylaws allow for a Board of not more than fifteen (15) directors, which this year includes the following elected officers — P res iden t , V i ce Pres ident , Secretary, and Immediate Past President. The Treasurer is an officer appointed on an annual basis by the President. Representation on the Board of Directors shall be limited to not more than one-third of the total amount of directors at any time. Ballots for member voting will be distributed via email to the primary contact listed for each member firm. Only one completed ballot may be submitted per each member firm. Voting results will be announced at the ASA of Arizona Annual Meeting and Election Dinner to be held on Tuesday, May 17, at the Fiesta Resort Conference Center in Tempe. Online registration will be available shortly at www.asa-az.org.

T ime flies and believe it or not the beginning of a new fiscal year for ASA of Arizona is just

three short months away. The Chapter’s Nominating Committee has been hard at work interviewing candidates for the 2011-12 Board of Directors and is pleased to announce the following members will be included on this year’s Board of Directors ballot: OFFICERS

President Bob Conshue RMJ Electrical Contractors, Inc.

Vice President Brian Cooper AROK Inc.

Secretary Janet Gilbert Gilbert Plumbing

Immediate Past President Jeff Banker Banker Insulation (Service per chapter bylaws)

Treasurer Michael Gatson Pittman & Murdough, PLLC (Appointed position)

DIRECTORS/SUBCONTRACTORS

Jason Anderson MKB Construction, Inc.

Marlin Coffee Magnum Companies

Rita Lawrence L & L Asphalt, Inc.

Scott Schuster Schuck & Sons Construction Co., Inc.

Patricia Thornham Advance Terrazzo Company

Scott Wilson W.J. Maloney Plumbing DIRECTORS/ASSOCIATES

Jim Palecek Palecek & Palecek, PLLC

Brian Saker Border Construction Specialties, LLC

Jim Sienicki Snell & Wilmer, LLP

Dennis Tsonis Lovitt & Touche, Inc.

Christine Ulibarri CBIZ/Mayer Hoffman McCann, PC

2011-12 Board of Directors Nominees Announced

Gold Sponsor: Partitions & Accessories Company Lunch Sponsor: Kitchell Contractors Hole-In-One Sponsors: Hill & Usher Insurance & Surety • Courtesy Chevrolet

RV Raffle: RV Rental Outlet Prize Sponsors: Lifestyles Media Group • Carson Sales • L & L Asphalt, Inc. Tee Tables: Arizona Builders Group, ConstructionReports.com Longest Drive: Arizona Builders Group

Tee Sponsors: Magnum Companies, IMCOR, Kitchell Contractors, Harris Mechanical Southwest, WSP, Inc. Complete Roofing & Waterproofing, Inc., Partitions & Accessories Company, The Weitz Company, Masco Framing Corp., Hensel Phelps Construction, CORE Construction Services of Arizona, Perini Building Co., D.L. Withers Construction, Sundt Construction, Inc, and FCI Constructors.

Many thanks to our 2011 Golf Tournament & FUNdraiser Sponsors The support and contributions of the following sponsors, along with our staff and volunteers, was

instrumental in making this year’s golf tournament another great success. Event photos are posted online!

ASA of Arizona, Inc. Page 2

Arizona’s Roosevelt Dam Celebrates Centennial

By David M. Brown

On March 18, 1911, Theodore Roosevelt pressed a button, releasing the first flow of water from a dam bearing his name, deep within the Arizona Territory. ―If there could be any monument which would appeal to any man, surely this is it,‖ Roosevelt told the crowd of 1,000 who had assembled in the remote Superstitions Wilderness, 76 miles northeast of Phoenix. The former president had ardently campaigned for and signed the 1902 National Reclamation Act, making the dam, today’s Bureau of Reclamation and an irrigated West possible.

―Great things will take place in the Salt River Valley due to this project,‖ Roosevelt envi-sioned. A year l a te r , A r i zona became the 48th state. Later this week, m o d e r n - d a y

Arizonans will gather exactly 100 years later near the site that Roosevelt inaugurated the dam to celebrate its centennial. Phoenix had begun in the decades following the Civil War as an agricultural community building on the early Hohokam canal system, but growth sputtered because of recurrent flood/drought cycles. By controlling the vagaries of the area’s 13,000-sq-mile mountain wa t e r s he d , t h e T he o d o re Roosevelt Dam generated today’s desert lifestyle, exemplified by Phoenix. ―The dam transformed a volatile water supply to a steady one,‖ says James LaBar, a principal historical

analyst for Tempe-based Salt River Project, the largest provider of power and water to the greater Phoenix metropolitan area and manager of the Roosevelt Dam as well as seven additional storage and diversion dams. ―In doing that, the dam transformed Arizona and the Southwest.‖ ―Because of the foresight of early settlers and multiple engineers, and the work of land surveyors, contractors and laborers, the watershed was protected so that its abundant supplies would benefit everyone in the Valley,‖ says Shelly C. Dudley, SRP’s senior historical analyst. Originally called the Tonto Basin Dam for its location at ―The Crossing,‖ a narrow gorge just south of the confluence of the Tonto Creek and the Salt River, the cyclopean-masonry gravity-arch dam was, at its building, the highest of its kind in the world. The dam performs on the ―keystone effect‖: the fuller the reservoir, the stronger it is. Begun in 1905 by the newly formed U.S. Reclamation Service, the approximately $3.8-million dam was 280 ft high at its 16-ft-wide, 723-ft-long crest — with a roadway configured to accommodate two Model-T Fords abreast. Anchored by a maximum 184-ft base width, the dam impounded a reservoir with a storage capacity of 1,336,734 acre feet intended for irrigation, flood control and power generation. Left and right spillways could discharge 150,000 cubic ft of water per second in flood conditions and generate 36 MW of power. Its reservoir — at the time the largest man-made lake in the world — remains a recreational attraction in the Tonto National Forest.

Denver-based general contractor John M. O’Rourke Co.’s first hurdle was to simply get the manpower and materials to the remote site, Labar says. In order to build the 60-mile road through the mountains and desert from Mesa, the cities of Phoenix, Mesa, and Tempe b o n d e d t h e m s e l v e s f o r approximately $75,000 to aid in the construction of the Apache Trail, now S.R. 88. W o r k c o n t i n u e d t h r o u g h excavation, erecting the 1,200-ft-long cableways over the site and building the cofferdams and flume to keep river water out. The dam was faced from boulders cut or blasted from the surrounding sandstone cliffs; these were bonded with mortar and concrete. The first stone, weighing six tons, was set Sept. 20, 1906 by stonemasons, many of whom were Italian immigrants from Penns-ylvania. These boulders faced the downstream and the slightly bowed upstream sides. Between these, laborers placed large stones weighing up to ten tons each, carried by the cableways, often at night to free the units for mortar hauling during the day. Each stone was lowered into waiting mortar and fitted into place. Workers filled gaps with spall, or smaller rocks, and vertical spaces with mortar. Although construction hampered by floods through the building process, Roosevelt Dam was completed by February 1911. Four years later, the reservoir was full, and water was released over the left and right spillways April 14, 1915. Some of this was used to christen the U.S.S. Arizona, bombed at Pearl Harbor, launching the U.S. into World War II.

Photo courtesy of SRP

Continued on page 5

Page 3 Subcontractors Update Bulletin

Outdoor Workers Need to be Aware

of Stinging Insects, Biting Snakes by Tod Denis, SCF Arizona

In the Sonoran Desert, spring brings with it greater insect, bug and snake activity. Outdoor workers should pay special attention to their surroundings to avoid the stings and bites that can set them back with minor and sometimes major medical issues. When working outside, employees should avoid wasps, bees, ants, spiders, scorpions, mosquitoes, snakes and other stinging or biting insects or animals. In fact, nearly 900 workers’ compensation claims were filed with SCF in 2010 because of an insect or animal sting or bite. ―Workers should be aware of their daily surroundings,‖ says SCF Arizona Loss Control Consultant Sandra Bencic. ―They need to pay attention to where they place their hands and feet and shake out gloves and shoes before putting them on. And if they are bit or stung, they should get prompt medical treatment.‖ Below are some of risks associated with getting bit or stung by common Arizona insects and animals: Mosquitoes: These blood-gorging insects can carry the West Nile virus, with symptoms ranging from a mild flu-like condition to life-threatening illness. When working outside, workers should wear long-sleeved shirts and pants and use an insect repellent on exposed skin. Be aware that mosquitoes are most active during dusk, dawn and

at night. They often are found around stagnant water. Scorpions: Stings from scorpions are not lethal but can be painful and leave nasty marks. Scorpions hide during the day and are most active at night. Be cautious where you place your hands and exposed body parts so you don’ t inadvertently stumble onto a scorpion’s hiding place. Shake out gloves, clothes and shoes before putting on. Scorpions often hide in the latter. Wasps and bees: Neither of these insects is likely to swarm, unless they feel you are a threat to their nest or hive. That’s why it’s important to inspect an area for a nest or hive, which may need to be removed before work can proceed, particularly in high-traffic areas. This may require using a pest control professional. Spiders: Spiders generally are passive, unless they feel they are being attacked. Their bites, however, can lead to burning, swelling and redness, along with headaches, dizziness, muscle rigidity and other symptoms. Brown recluse spider bites are considered more dangerous than that of a black widow, especially for children. In either case, prompt medical treatment can help minimize some symptoms. Ants: Harvester ants may have the most painful sting among the insects listed. Be aware of any ant

piles and nests in areas where you are working. If you are standing on one, there’s a good chance you’ll get bitten. Rattlesnakes: Because Arizona is home to various rattlesnake species, workers should be aware of the potential to encounter a venomous snake. During hot days, snakes tend to hide in moist, damp, shady areas. Never put a hand or foot into an area – such as a hole, meter box, under rocks or bushes – if you can’t see what’s there. And never attempt to remove a snake yourself; leave it to a trained professional. ―Niche, moisture and food are the three things that most attract snakes and many insects,‖ says Carl ―The Bugman‖ Olson, assistant curator at the Insect Research Collection at the University of Arizona. ―If you don’t want them around, you have to see what you can change to make it inhospitable for them.‖ Safety and information brochures on ―West Nile virus‖ and ―Bites and stings‖ can be requested at www.scfaz.com. To order, click on ―Order Safety Brochures . ‖ Preventing Animal and Insect Bites also will be featured as a class at SCF’s Tucson Safety Works Expo, April 2, at the Sheraton Tucson H o t e l & S u i t e s . V i s i t www.scfaz.com to register for this daylong series of workplace safety seminars.

Tod Denis is the SCF Arizona association coordinator to ASA of Arizona. He can be reached at (602) 460-6934 or email

tdennis@scfaz.com.

Page 4 ASA of Arizona, Inc. ASA of Arizona, Inc.

President McLaughlin: ‘Our Association

Has Renewed the Promise of ASA’

He re m i n d e d t h o s e i n attendance that just a few weeks ago ASA released updated bidding and negotiating tools to help members get better subcontrac ts . McLaughl in recognized the Circle Club members for their contributions and thanked ASA’s generous sponsors: Platinum Sponsor, CNA; Gold Sponsor, Project DocControl; Silver Sponsors, Allstate Insurance and Fringe Benefit Group; and Bronze Sponsors, The Blue Book and UPS Freight.

Chapter Support. McLaughlin noted that part of ASA’s strategic plan is to support local chap te rs . ASA supports chapters through programs such as the ―Workshop in a Box‖ program and the ASA hot prospect program. He also d i s c u s s e d A S A ’ s n e w Subcontractor Power Points Program, which rewards members who help ASA and its chapters recruit new members.

Get a glimpse of the ASA Business Forum and Convention 2011 by visiting the photo album on the ASA Facebook page.

businesses whose bids they used ―in preparing their bid or proposal.‖

State Advocacy. McLaughlin recognized the excellent team of subcontractor advocates who work hard every day in their states, citing The ASA Report: The Policy Environment in the States. He touted successes in Arizona, California, Kansas, Oklahoma and Tennessee.

L e g a l Ad v o c a c y . A S A intervenes in potent ial ly precedent-setting court cases across the country through the Subcontractors Legal Defense Fund. McLaughlin highlighted SLDF cases in California, Maryland, North Carolina, Ohio, Tennessee and Texas.

Education. McLaughlin added t h a t A S A e m p o w e r s subcontractors to be their own best advocate for the ir bus inesses by providing resources and education. ASAToday, The Contractor’s Compass and resources like the ASA chart on prompt payment laws in the 50 states are just a few resources ASA offers to keep subcontractors informed.

ASA President (2010-11) Timmy McLaughlin, Austin Construction Company Inc., Summerville, S.C., reviewed ASA accomplishments in the areas of federal, state and legal advocacy, education and chapter support in his ―State of the Association‖ address on March 4, 2011, at the ASA Business Forum & Convention 2011 in Naples, Fla.:

Federal Advocacy. ASA has been a strong, and sometimes the sole, voice for subcontractor r i g h t s i n W a s h i n g t o n . McLaughl in noted ASA’s renewed commi tment to advocacy. ―ASA, its volunteers and staff promise to work d i l i gen t ly on beha l f o f subcontractors so that you can be powerful advocates for your own companies and for our construction industry,‖ he said. ASA has successfully worked with Congress to enact laws that help subcontractors. He cited as two examples ASA’s efforts to require federal agencies to make subcontractor payment an evaluative factor in their award of prime contracts and efforts to require federal prime contractors to explain to their contracting officers why they did not subcontract with those small

Lovitt & Touché Celebrates

its 100 Year Anniversary

Lovitt & Touché, one of the largest insurance agencies in the United States, celebrates its centennial anniversary this year. Founded in 1911, Lovitt & Touché is now located in three cities throughout the Southwest – Tucson, Phoenix, Las Vegas. There will be a Centennial Celebration on April 20th from 4pm – 7pm at Lovitt & Touché’s Tempe location (1050 W. Washington St., Ste. 233, Tempe,

85281). Please join us for Southwest inspired evening of Cocktails & Hors D'oeuvres in

honor of this special occasion. About Lovitt & Touché Lovitt & Touché is one of the largest insurance agencies in the United States, with nearly 200 employees in three offices and over $347 million in total premiums. Lovi t t & Touché has the

experienced personnel and financial strength to solve insurance problems all over the world. Located in Tucson, Tempe and Las Vegas, Lovitt & Touché is a full service brokerage firm specializing in Employee Benefits, Property & Casualty, Personal Insurance and Bonds & Surety. For more information please visit Lovitt & Touché’s NEW website:

www.lovitt-touche.com.

Page 5 Subcontractors Update Bulletin

In 1963, the dam became a National Historic Landmark, and in 1970 the American Society of Civil Engineers named the dam a National Historic Civil Engineering Landmark. In 1989, crews began to raise and fortify the dam, as mandated by the Reclamation Safety of Dams Act of 1976. Completed in 1996, the now 357-ft concrete-faced dam exceeds the original by 77 ft. Traffic was moved off the dam and onto the new 1,080-ft Roosevelt Lake Bridge. T h e $ 4 3 4 . 4 - m i l l i o n d a m modification resulted from Dept. of Interior concerns that the aging dam might not safely handle a probable maximum flood or a maximum credible earthquake. As the only dam on the Salt and Verde rivers system with flood control capability, its stability is essential to

the safety and vitality of the Phoenix metropolitan area. The modification project added 557,000 acre ft of flood control, approximately 1.2 million acre ft of dam-safety space and 300,000 acre ft of water-storage space for consumption by Valley residents. The J.A. Jones Construction Co. of Charlotte, N.C., completed the dam-raising, overlaying the original structure with 450,000 cubic yards of concrete placed in blocks varying from 10- to 50-ft thick. Other work included modifications to the turbine and replacement of the generator to handle increased head pressures from the new capacity. A lake tap with steel intake structure that was added to improve low - level re l ease capabi l i t ies was especial ly challenging due to the need to use divers for the underwater

construction, says Tom Hepler, principal designer at the dam between 1990 and 1996. On January 19, 1993, a 100-plus year flood caused reservoir waters to overtop the dam directly above the powerhouse. The flooding caused $1 million in damage and a six-month delay to construction. After an extensive cleanup of the powerhouse, work continued on the turbine and the unit was completed in time for summer peak power demands in June 1995, says John D. Wilkie, resident engineer at the dam from 1987-1997. Today, the dam continues to serve the Phoenix area, and water levels have increased to a healthy 93% of peak levels. Ar t i c l e i s rep r i n t ed f rom ENRSouthwest, March 15, 2011.

Communications Monitoring Presents

Potential Liability Exposure

As case law develops, employers seeking to monitor employees’ electronic communications – whether on company time or on company equipment – should proceed with caution, experts say. Employers should consider state laws, which in most cases apply to privacy issues, and federal laws including: the Stored Comm-unications Act, which prohibits clandestine access to electronically stored information; the Electronic Communications Privacy Act, which bans the interception and reception of certain electronic communications; the Wiretap Act, which governs privacy of oral and wire communications; and the National Labor Relations Act, which covers collective bargaining and other employer and employee rights.

Generally if employers are monitoring employee activity over a corporate server and employees are using corporate equipment, the information is fair game, as long as the employer has given notice that there may be monitoring. However, going into personal social network or e-mail accounts accessed on a company computer is where the courts have begun to draw the line, according to attorney experts. Regulating corporate information shared by employees on public forums and websites is another gray a rea. Assuming the information in question is not defamatory, it is unclear whether employers have that right. An employer could even violate an employee’s free speech rights with adverse action in response to a blog post or other public commentary.

In the absence of developed precedents on the topic, employers s h o u l d t a k e p re c a u t i o n s . Employers monitoring employees’ electronic communications should establish a policy that explicitly states employees have no privacy rights in communications on company systems or on equipment purchased and reimbursed by the company. They should reinforce these policies periodically, but always respect the privacy of personal, password-protected e lec t ron ic communicat i ons , avoiding rash reactions to perceived employee criticisms in electronic communications. For information about coverage for employment practices liability, contact the insurance professionals at Lovitt & Touché, Inc., www.lovitt-touche.com

Roosevelt Dam, continued from page 2

“The dam transformed a volatile water supply to a

steady one...In doing that, the

dam transformed Arizona and the

Southwest.”

Page 6 ASA of Arizona, Inc. ASA of Arizona, Inc.

Summary of 2010 Amendments to

Arizona Prompt Payment Act

by Jason Ebe, Snell & Wilmer, LLP

your reasons for withholding payments within fourteen (14) days after the date you receive a billing or estimate. If you fail to issue the written statement within that period, the billing or estimate will be deemed approved. Once the billing or estimate is deemed approved, you must pay the billing or estimate within seven (7) days. Generally, you are limited by the act to withholding only an amount that is sufficient to pay the direct costs and expenses you reasonably expect to incur to protect you from loss for which the contractor is responsible. You are encouraged to read the act in full to know your obligations and rights. If the contractor does not include this notice legend on its billings to the owner-occupant, the prompt pay requirements will not apply. ADDITIONAL KEY PROVISIONS FOR SUBCONTRACTORS AND SUPPLIERS Under the new law, if the owner withholds payment for defective work or materials not remedied and if the contractor as a result does not receive sufficient funds to pay subcontractors and suppliers whose work was not the basis of the owner’s withholding for defective work or materials not remedied, the contractor must n e v e r t h e l e s s p a y s u c h subcontractors and material suppliers within 21 days. Un d e r t h e 2 0 0 0 l a w , a subcontractor could make a written request to the owner requesting the owner to notify the subcontractor within five days after making payments to the contractor. However, the subcontractor had to renew that request each month. Now, under the 2010 amendments,

The new law further provides that the owner is limited in its withholding to an amount not to exceed 150 percent of the direct costs and expenses the owner reasonably expects to incur to protect the owner from loss for which the contractor is responsible. Final Payment The 2010 amendments also provide a more detailed approach for final payment. These provisions are similar to the billing, approval and payment provisions for progress payments under the 2000 law and for release of retention under the new law. Special Requirement for Owner Occupied Dwellings The 2010 amendments impose an addi t ional requi rement on construction projects involving owner-occupied dwellings. The law now requires the contractor to include a notice legend in clear and conspicuous type on the front page of each billing or estimate from the contractor to the owner-occupant. The notice must state: Notice to owner of applicability of Arizona Prompt Payment Act Attention: Your obligations to pay your contractor are subject to the Arizona Prompt Payment Act. That act is set forth in section 32-1129, Arizona Revised Statutes, and sections 32-1129.01 through 32-1129.07, Arizona Revised Statutes. The full text of the statutes are available at your local public law library or the internet. Under that act, you have the right to withhold all or a portion of a payment to a contractor for a variety of reasons, including defective construction work that has not been corrected. However, in order to do so, you must issue a written statement setting forth in reasonable detail

Spring is nearly here, and if you plan to do private construction work in Arizona this year, now is the time to update your contracts to reflect the changes in Arizona’s private construction Prompt Payment Act that went into effect January 1, 2011, A.R.S. §§ 32-1129 through 32-1129.07 as described in this article. The 2010 amendments apply to any private construction contract in Arizona where the initial distribution or dissemination of plans, including bid plans and construction plans, specifications or contract documents by an owner to a contractor or subcontractor, occurred on or after January 1, 2011. Prior projects follow the 2000 law. The 2010 amendments also apply to all private construction contracts in Arizona entered into on or after January 1, 2012, regardless of when plans are distributed. K E Y P R O V I S I O N S F O R GENERAL CONTRACTORS Release of Retention The 2010 amendments define ―retention‖ as ―a portion of a progress payment otherwise due from the owner to the contractor that is withheld pursuant to the terms and conditions of a construction contract to ensure proper performance of the construction contract.‖ Under the new law, the contractor is required to submit a billing for release of retent ion upon substantial completion of the work. The billing for release of retention is deemed certified and approved 14 days after submission unless prior thereto the owner declines to certify and approve the billing in writing and for reasons allowed under the statute. Retention must be paid within seven days after certification and approval of the billing.

Continued on page 7

Page 7 Subcontractors Update Bulletin

the subcontractor’s request remains in effect for the duration of the subcontractor’s work on the project. Under the 2000 law, a general contractor had no statutory duty to advise a subcontractor or supplier of the general contractor’s d i s a g r e e m e n t w i t h t h e subcontractor’s or supplier’s billing request. Now, the general contractor must provide written notice to the subcontractor or supplier within 14 days detailing the contractor’s reasons for not p a s s i n g t h r o u g h t h e subcontractor’s or supplier’s billings. Similarly, the prior law did not require the general contractor to notify the subcontractor or supplier of the owner’s refusal to certify and approve a billing. The 2010 amendments now require the contractor to pass on that written objection within seven days. The 2010 amendments also provide that the amount of retention that the general contractor can withhold from subcontractors shall not exceed the actual amount of retention retained by the owner pertaining to the subcontractor’s work. ADDITIONAL KEY PROVISIONS FOR OWNERS Substantial Completion The 2010 amendments provide a definition of substantial completion.

Under the new law, substantial completion is defined as the earliest of the following three events: 1. When the work is sufficiently

complete in accordance with the terms and conditions of the construction contract so that the owner can occupy and use the work for its intended purpose.

2. When the work is sufficiently complete in accordance with the terms and conditions of the construction contract so that the owner can occupy and use the work for its intended purpose but the owner is unable to or does not occupy or use the work through no fault of the contractor.

3. The date the governmental body that issued the building permit for the project issues a written acceptance allowing the owner to occupy and use the work under the construction contract.

The owner may opt out of this def ini tion by providing i ts alternative language in the contract and by providing the opt-out notices in the contract and on all sheets of plans, including bid plans and construction plans. Stonecreek Fix The 2010 amendments cure an unintended effect of the language of the 2000 law with respect to an owner’s right to withhold payments for defective work. In the Stonecreek decision in 2007, the Arizona Court o f Appeals

interpreted the law to prevent owners from withholding payment for defective work that had been billed and paid for under a prior billing but not discovered until later. In that instance, the owner, having discovered that it had earlier approved and paid for work that was later found defective, had to continue to make payments to the contractor and could only withhold payment from certain portions of the contractor’s future billings, potentially handicapping the owner’s ability to satisfactorily protect itself from the harm it had suffered from previously paying for defect ive work. The 2010 amendments revise the language with respect to withholding to specifically allow an owner to withhold from future payments amounts necessary to protect the owner from prior billed and paid defective work. Conclusion Now is the time to update your contracts before you begin new private construction projects in Arizona. If you have questions or seek fur ther guidance on complying with this new law, c o n t a c t a k n o w l e d g e a b l e construction attorney. Article excerpt is taken from the Snell & Wilmer, Under Construction Newsletter, March 2011

Save the Date May 25

for the Members Only Contract Study Group sponsored by

ASA of Arizona and

Snell & Wilmer

ASA has updated three of its most useful bidding and negotiating tools. As an ASA member, you can download samples now from the ASA Web site:

1. A S A A d d e n d u m t o Subcontract (2011)

2. ASA Short-Form Addendum to Subcontract (2011)

3. ASA Subcontractor Bid Proposal (2011)

If you’re not a member consider this—You will have resources from national at your fingertips and members only opportunities with ASA of Arizona. Maybe NOW is the time to join!

ASA Members: Download ASA’s Updated

Bidding and Negotiating Tools

Page 8 ASA of Arizona, Inc. ASA of Arizona, Inc.

Red, White & Brew—Take 2

The beer flowed and the red and white wines were poured on a beautiful March day as ASA members and supporters gathered for the Red, White & Brew — Take 2 fundraiser hosted at Hill & Usher Insurance and Surety, Phoenix. The advocacy fundraiser event supported the Copper Club, which funds legislative efforts on behalf of ASA members and the construction industry, and brought in $4,889.00 from ticket sales, raffle and silent auction. The attendees were entertained by String Theory of Phoenix, AZ with one-half of the group being our very own Shawn Manske of Kovach, Inc. and Safety Committee Chair. ASA would like to say ―thank you‖ to the following sponsors:

Delta Diversified Enterprises, Inc.

Hill & Usher Insurance and Surety

Morrison & Associates, CPAs

Lang, Baker & Klain, PLC

Banker Insulation, Inc.

Cobra Stucco, LLC

F1 Raceway

Banker Insulation, Inc.

Border Construction Specialties

Broadway Palm Dinner Theatre

Cornelis Hollander Designs

Courtesy Chevrolet

Essco Wholesale Electric Supply

Magnum Companies

Palecek & Palecek, PLLC

RMJ Electrical Contractors, Inc.

Sprinkles Cupcakes

Texture A Salon If you missed this event we will be hosting another beer and wine tasting fundraiser for the Copper Club this upcoming fall. If you would like to learn more or support the Copper Club now please contact the ASA office at 602-274-8979.

Page 9 Subcontractors Update Bulletin

Members Supporting Members

NOW AVAILABLE! www.subcontratorsblog.com

An Online Blog to support

and help subcontractors

Express Your Needs

Post a Suggestion

Find a Job

Post a Job

Locate an ASA chapter

Log On Today!

Page 10 ASA of Arizona, Inc.

Gilbane Building Company Announces

Nationwide Adoption of the Textura

Construction Payment Management (CPM)

System to Improve Profitability, Reduce Risk

Gilbane Building Company, one of the nation’s leading providers of Construction Management and related services, announced today that they will utilize Textura Corpora t i on ’s Cons t ruc t i on Payment Management (Textura–CPM) system on all of their projects nationwide. Gilbane Building Company will use Textura–CPM to automate Subcontractor invoicing, collect Subcontractor lien waivers , t rack compl iance requirements, and disburse payments elect ronica l ly to Subcontractors. This will increase efficiency, reduce risk, improve profitability, and create better process management for Gilbane. Gilbane's Chairman and CEO T h o m a s F . G i l b a n e , J r . commented, "Textura's suite of products addresses many long-standing technology needs in the construction industry. Specifically,

Textura–CPM is the only industry solution that fully automates the billing and payment process. Implementing Textura accelerates our strategy of applying leading edge technologies to strengthen our bottom line." The decision furthers Gilbane Building Company's commitment to continuously improve Subcon-tractor relations through shorter pay cycles and more rapid issue resolution. Moreover, Gilbane expects to achieve improved risk mitigation, efficiency gains for both corporate and project staff, and process standardization across all regions in the US. Textura–CPM enables Gilbane's increasing focus on Green/Sustainable design and construction by reducing paper use and the transportation required to exchange paper documentation.

"Having Gilbane Building Company fully implement is a significant event in the history of our firm," according to Pat Allin, Chairman & CEO, Textura Corporat ion. "Gi lbane is a world -c lass construction organization and a name that is held in the highest esteem in the industry. Their decision to fully implement Textura–CPM is a testament to the value and return on investment that our service provides." Gilbane Building Company is using the Textura–CPM system on dozens of construction projects across the United States. The significant, measureable benefits achieved led to Gilbane's decision to adopt the Textura–CPM solution nationwide. For more information about Textu ra Corpora t i on , v is i t www.texturacorp.com.

“...Textura accelerates our

strategy of applying leading

edge technologies to strengthen our

bottom line.”

Sea of Contractors Seek Bullet Train Work

Rick Scott turned down federal money for a bullet train between Orlando and Tampa. High-speed backers say the train will reduce the state’s carbon emissions, meet travel needs and be a job-generator. Its detractors said they fear the bullet train’s path will divide communities and that it could be a waste of taxpayer money if it does not turn a profit. Reprinted from The Business Journal Phoenix Morning Call, March 22, 2011

220 miles per hour between San Francisco and southern California. ―The size of this response sends a clear signal that the private sector sees great opportuni ty in California’s high-speed rail project,‖ said Roelof van Ark, CEO of the Cal i fornia High-Speed Rai l Authority. The authority has received $5.5 billion in federal funding toward the project. The state’s voters in 2008 approved almost $10 billion in bonds for the project. The authority must also raise money from private investors to pay the estimated $43 billion price tag. In Florida, Gov.

California’s bullet train could offer some contracting work for Arizona businesses. Golden State transportation architects said more than 1,100 large and small businesses expressed interested in funding, planning, building and operating the high-speed system. The submissions came to the Cal i fornia High-Speed Rai l Authority after it requested firms put in writing their desire to work on the state’s high-speed rail project. The bullet train, as envisioned, would operate at speeds of up to

Page 11 Subcontractors Update Bulletin

2010-2011 ASA of Arizona Members

3-G Construction Co., Inc. 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. Alliance for Construction Excellence Alliance Lumber

Alliant Insurance Services, Inc. American Fence & Security Co., Inc. Amerisure Insurance

Ammex Rebar Placers, Inc. A-O Painting, Inc. Arizona Builders Group Arizona Partition, Inc. AROK Inc.

Asphalt Paving & Supply, Inc. Banker Insulation

Barrett-Homes Contractors BBVA Compass Insurance Bergelectric Corp. Border Construction Specialties, LLC

Buesing Corp. Cavanagh Law Firm CBIZ/Mayer Hoffman McCann, PC Ceco Concrete Construction, LLC Charles Court Construction, Inc. Christine Ulibarri, CPA CLP Resources, Inc. Cobra Stucco, LLC

Commercial Door & Hardware, Inc. ConstructionReports.com Contempo Construction, LLC Corbins Service Electric, LLC Courtesy Chevrolet Crane Rental Service, Inc. Creative Business Resources Creative Consulting Solutions Curran Masonry Corp. DBA Construction, Inc. DCW, Inc. Delta Diversified Enterprises, Inc. Diversified Builder Supply, Inc. Diversified Roofing Division Nine Contracting, Inc. Eagle Steel Erectors, Inc. Falcon Plastering, Inc. Five G, Inc. Folk & Associates, PC George McDonnell & Sons Truckpointing Co. Gilbert Plumbing Graef Construction, Inc. HACI Mechanical Contractors, Inc. Hagen Business Systems, Inc. Harmon Electric, Inc.

Harris Mechanical Southwest

Hennesy Mechanical Sales, LLC Hill & Usher Insurance and Surety Holden Willits Horizon Insurance Group Industrial Refrigeration & Boiler Co. Interstate Mechanical Corp.- IMCOR Ironco Enterprises, LLC J.D. Steel Company, Inc. J.F. Ellis Corporation Jennings, Haug & Cunningham Jones Concrete Construction, LLC Jones, Skelton & Hochuli, PLC J-Rock Drywall Kortman Electric, Inc. Kovach, Inc. L & L Asphalt, LLC Lang Baker & Klain, PLC Lifestyles Media Group, LLC Lovitt & Touche, Inc. MAA Construction Accounting

Services Magnum Companies

Maricopa Metals, Inc. Markham Contracting Co., Inc.

Masco Framing Corp. Meyer & Lundahl Mfg., Inc. Michael L. Riddle Painting, Inc. Midstate Mechanical, Inc. Minard-Ames Insurance

Services LLC

MKB Construction, Inc. Montezuma Paving Moss Adams, LLP National Bank of Arizona Nexus Steel, LLC NGH Power Systems Olsen Brothers, Inc. Palecek & Palecek, PLLC Partitions and Accessories Co.

Pittman & Murdough, PLLC Prado & Sons Pool Plastering, Inc. Precision Door Service

Price, Kong & Co., CPA’s Pro Steel Erectors II, Inc. Progressive Hardscapes Qqest Payroll Services

RICOR, Inc. RMJ Electrical Contractors, Inc. Roadrunner Drywall Ruiz Insurance Group, LLC Rummel Construction, Inc. RV Rental Outlet S & S Paving and Construction, Inc. Sacks Tierney, PA Saguaro Drywall Samon Bros. Framing, Inc.

Sandstorm Construction, LLC SCF Arizona Schuck & Sons Construction Co. SEMTEC Laboratories Skill Supply, LLC Skinner Interior Systems, Inc. Snell & Wilmer, LLP Star Plastering, Inc. Star Roofing, Inc. Structures Group Southwest, Inc. Sun Valley Masonry, Inc. Sunstate Equipment Co. Suntec Concrete

Superstition Carpentry, LLC Sutter Masonry, Inc. Talis Construction Corp. Textura Corporation Tucson Commercial Carpet United Construction Group Universal Piping Urban Energy Solutions Vulcan Materials Company W & W Architectural Metals, Inc. W. J. Maloney Plumbing Co., Inc. Walls & Ceilings MD, LLC Walters & Wolf Construction

Specialties WSP, Inc. Yavapai Mechanical, LLC Yellow Jacket Drilling Younger Brothers Door & Trim New Member

Copper Club Supporter

ASA PARTNERS

IN CONSTRUCTION

CORE Construction Services of Arizona, Inc. D.L. Withers Construction FCI Constructors, Inc. Hensel Phelps Construction Perini Building Co., Inc. Sundt Construction, Inc. The Weitz Company

American Subcontractors

Association of Arizona, Inc.

The Voice of Arizona Subcontractors

We’re on the WEB

Www.asa-az.org

Carol Floco Executive Director

carol@asa-az.org

Ivan Llata Member Support Services

office@asa-az.org

Jennifer Dunsworth Communications Specialist

communications@asa-az.org

4105 N. 20th Street

Suite 230

Phoenix, AZ 85016

Phone: (602) 274-8979

Fax: (602) 277-4505

E-mail: asa@asa-az.org

2009-2010 Board of Directors

Officers:

President David Beer Sun Valley Masonry, Inc.

President Bob Conshue

Elect RMJ Electric

Vice Vic Pietkiewicz

President Harris Mechanical Southwest

Secretary Marlin Coffee Magnun Companies, Inc.

Treasurer Michael Gatson Pittman & Murdough, PLLC

Imm. Past Jeff Banker

President Banker Insulation

Directors:

Brian Cooper AROK Inc.

Janet Gilbert Gilbert Plumbing

Ward Jennings Able Steel Fabricators, Inc.

Jim Palecek Palecek & Palecek, PLLC

Brian Saker Border Construction

Specialist, LLC

Scott Schuster Schuck and Sons

Construction Co., Inc. Patricia Thornham Advance Terrazzo Company

Dennis Tsonis Lovitt & Touche, Inc.

Christine Ulibarri CBIZ MHM, P.C.

May 12 / Thursday

Finance Committee 2:00 pm Meeting Location: Pittman & Murdough 745 E. Maryland #114, Phoenix 85014

May 17 / Tuesday

Board of Directors Meeting 4:00 pm Meeting Location: Executive Board Room Fiesta Resort Conference Ctr. 2100 S. Priest Dr., Tempe ASA of Arizona Annual Meeting and Election Dinner 5:30 pm Registration & Networking 6:30 pm Program & Dinner Location: Fiesta Resort Conf. Ctr. 2100 S. Priest Dr., Tempe Advance Registration Required May 24 / Tuesday

Residential Construction Forum 7:00 am Meeting Location: ASA Chapter Office Advance RSVP Requested

May 4-5 / Wed & Thurs

OSHA 10-hour Training for Construction (English) 7:00 am—Noon each day Location: ASA Chapter Office Advance Registration Required May 10 / 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 Advance RSVP Requested May 11-12 / Wed & Thurs

OSHA 10-hour Training for Construction (Spanish) 7:00 am—Noon each day Location: ASA Chapter Office Advance Registration Required

May 25 / Wednesday

Membership Committee 11:30 am Meeting Location: ASA Chapter Office Advanced RSVP Requested May 26 / Thursday

Education & Events Committee 10:00 am Meeting Location: ASA Chapter Office Advanced RSVP Requested May 31 / Tuesday

SCF Task Force 10:00 am Meeting Location: ASA Chapter Office

Safety Committee 11:30 am Meeting Topic: OSHA Enforcement Location: ASA Chapter Office Advance RSVP Requested

Calendar of Events / May 2011

April 21 / Thursday

Finance Committee 2:00 pm Meeting Location: Pittman & Murdough 745 E. Maryland #114, Phoenix 85014

Networking Social 4:00 pm Mixer Hosted by Hensel Phelps Construction Company Location: 444 N. 44th St. #105, Phoenix, 85008 Advance RSVP Requested April 26 / Tuesday

Residential Construction Forum: Critical Industry Issues Update Special Guest Speakers: Eric Murray, US Dept. of Labor Darin Perkins, ADOSH 7:00 am Meeting Location: Climatec Training Center 2851 W. Kathleen Rd., Phoenix 85053

Advanced RSVP Required

April 8 / Friday

Annual Golf Tournament Fundraiser 12:00 pm Registration 1:15 pm Tee Time Location: The Legacy Golf Resort 6808 S. 32nd St., Phoenix Advance Registration Required April 12 / 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 Advance RSVP Requested April 13 / Wednesday

Partners In Construction 7:30 am Quarterly Meeting

Location: Corbins Electric 4829 S. 38th St., Phoenix 85040 Advance RSVP Requested

April 27 / Wednesday

Members Only: Construction Best Practices 7:00 am Meeting Location: ASA Chapter Office Advance RSVP Requested

Membership Committee 11:30 am Meeting Location: ASA Chapter Office Advanced RSVP Requested April 28 / Thursday

Education & Events Committee 10:00 am Meeting Location: ASA Chapter Office Advanced RSVP Requested

Calendar of Events / April 2011

The ASA Chapter Office will be closed on

Monday, May 30 in observance of Memorial Day.

Have a fun and safe holiday!

How will you make a difference

on Earth Day, April 22?