Builder

VOLUME 11ISSUE 6

FEBRUARY 2008

In This Issue...Project Spotlight 2Association 4Annual Meeting 5Milestones 7Supplier Showcase 7Labor 8Safety 11

please see Association, page 6

The

Road To Future Road To Future Paved With BIMPaved With BIM

A Close Look At How The Builders Association Is Helping Your BusinessA Close Look At How The Builders Association Is Helping Your Business

BUILDING YOUR BUSINESS

John Moebes (above), Director of Construction of Crate and Barrel, discussed Building Information Modeling and its role in the future of construction during the Builders Association Annual Meeting December 11 at the Fairmont Hotel in downtown Chicago. Over 150 construction industry representatives enjoyed an outstanding food selection, an open bar and a cocktail hour before dinner. Enjoying the event at left are Weis Builders representatives Graeme Foster, Tom Flood, Chuck Wilkins, Rick Ulbrich, Marissa Brija and Russ Pande. For more on this event, see page 5.

What Can We Do For You?What Can We Do For You?BY LIZ HUMRICKHOUSE

From labor disputes to legal worries, jobsite safety and staying ahead of industry trends, there is a lot a contractor has to deal with. Take for instance a trust fund audit of your company. Maybe the trust fund sends you a letter that says you owe $80,000. You could of course pay that amount, but it seems like too much money. Your other option might be to hire a lawyer, but then of course you would pay legal fees.

As a member of the Builders Association you

would have a third option, because we can help you in a dispute with a trust fund, and there’s a free legal hotline in case you do decide you want legal advice.

You’re caught in the middle of a jurisdictional dispute, OSHA recently cited you for jobsite violations and to top it all off the trust fund thinks that you owe them money.

What do you do?

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please see Museum, page 3

Project Spotlight

BY LIZ HUMRICKHOUSE

History and modern day design come together in the Holocaust Museum & Education Center in Skokie. Bulley & Andrews, LLC is serving as general contractor for the $35 million museum, which is scheduled to open in November of 2008.

Executive Director to the Museum Richard Hirschhaut noted that Skokie was the perfect location for the facility. A powerful telling of the Holocaust story and general education about genocide will be highlighted.

“Skokie is a great location not just because it’s a great space, but because of the history here,” Hirschhaut said. “It’s been 30 years since the international spotlight was on Skokie after an attempt by neo-Nazis to march in the community. That event galvanized the thousands of Holocaust survivors who lived in the community at the time. Skokie is the perfect place for this facility.”

The move from the Holocaust to education about intolerance and hope for the future will be represented by different colors of panels. The building, designed by Stanley Tigerman of Tigerman McCurry Architects, is covered with black, gray and white panels.

Construction began in September of 2006. The building is designed to have two wings with a cleave in the

middle. Guests will enter the museum through the South side, which is covered in dark metal and is constructed with nuts and bolts meant to incite a feeling of dread as one enters the building. Eventually, they will pass through the cleave into the other wing of the building, past a rail car, the star exhibit in the museum.

“The cleave is the dividing line between the two wings and where they’re housing their most prized artifact, the rail car,” explained Scott Hartman, the onsite Project Manager for Bulley & Andrews.

After visitors pass by the rail car, which was used to transport victims to concentration camps during World War II, they will move into the North wing of the building. The North wing is covered in light metal and is melded together in opposition to the rougher, industrial construction of the opposite wing. The light side is representative of the transition away from the Holocaust.

“You enter the building on the South side,” explained Senior Project Manager Patrick O’Bryan. “The dark anodized metal clad building represents the descent into darkness, the concentration camps. The cleave or ‘hinge’ between the two sides serves as the memorial to those who perished in the Holocaust.

“The museum’s third section on the North side is made of white andoized metal and conveys an ascent into the light. This houses the education center and represents hope in educating people about intolerance.”

Museum Sheds Light On Painful PastBulley & Andrews Constructs Holocaust Museum That Aims To Educate, Preserve Artifacts

Steel barrel roof trusses are set on the North side of Holocaust Museum & Education Center in Skokie. Bulley & Andrews, LLC was chosen for the project, which is scheduled for completion in November of 2008.

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This effect is achieved through the architect’s industrial warehouse design theme, which is meant metaphorically to recall the era of the Holocaust.

“A large portion of everything on the inside is exposed on purpose to keep an industrial theme,” said O’Bryan. “Everything is strategically placed and exposed, but this makes the building process a little more tedious.”

The museum was built with concrete masonry block, CMU, instead of with a steel frame. Even though the CMU was chosen because of a specifi c design perspective, the labor involved in using it was slow. Often, design is sacrifi ced for functionality, here Stanley Tigerman’s design focused on the story-telling role.

“Structurally the museum bears primarily on grout fi lled CMU instead of a steel frame, which is used in about ninety percent of all construction today,” O’Bryan said. “This makes the building process laborious because you go up so many courses of CMU and then you have to fi ll it with grout before you can build any higher.”

Due to the CMU and some electrical and mechanical aspects, the building process has taken a lot of strategic planning.

“I think one of the more unique aspects of the building is the actual product materials,” Hartman stated. “The CMU isn’t going to be fi nished and neither are all the electrical and mechanical components. I think we’ve had about 30 coordination meetings for the electrical and mechanical components alone.”

Bulley & Andrews’ understanding of the importance of this project is apparent in the attention to detail. According to Hirschhaut that understanding is one of the main reasons they were selected for the job.

“We’re extremely satisfi ed with the work that Bulley & Andrews has done,” Hirschhaut said. “From the beginning of the project, they’ve show a keen sensitivity and a great awareness of the signifi cance of the project, which is something we needed.

“(Bulley & Andrews) has a track record of care and diligence, which we took into consideration when selecting a contractor. They’ve approached the project with an abiding sense of reverence.”

The importance of the museum to Holocaust survivors is apparent in the frequency of their visits to the jobsite.

Detailing of barrel roof trusses

focus of the museum is on education and intolerance. The gravity of the project hits home to those who worked on it.

“Survivors stop by the jobsite every now and again,” O’Bryan said. “Hearing their stories and seeing their excitement as the project comes to fruition gives us a tremendous sense of pride in what we are doing.

“Knowing we are creating much more than a building is professionally rewarding and personally fulfi lling.”

Become a certifi ed Associated Constructor or Professional Constructor through the American Institute of Constructors. The Builders Association has made arrangements to administer the test at DePaul University’s O’Hare location at 3166 South River Road in

“I’m sure they’ve had more unexpected people arrive at the site than they’re used to,” Hirschhaut said of the project team. “The personnel on the jobsite have been amazing to the visitors. They’ve been exceedingly kind and welcoming.”

Much of Bulley & Andrews’ attention to Tigerman’s unique design concept can be seen in the interior of the museum. The North wing has some of the CMU painted white in order to lighten up the mood of the museum, but in general the

Association Makes AIC Certifi cation Local, SimpleDes Plaines. The next certifi cation test will take place March 29. The registration deadline is February 1.

The Builders Association has a limited number of hard copies of the AICs brochure available. For more information, call Stacey Kelly at 847.318.8585.

Museum, from page 2

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Thanks To Our Annual Meeting Sponsors:James, Schaeffer & SchimmingCatalyst Project ManagementCeco Concrete Construction

Falk-PLI Engineering & Surveying, Inc.Hilb, Rogal & Hobbs

Pepper Construction CompanyProfessionals AssocatedRyan Companies US, Inc.Thorne Associates, Inc.

Weis Builders, Inc.Chicago Area LECET

T H E B U I L D E RT H E B U I L D E R

Board Selects 2008 Volunteer Offi cersAssociation News

J. David Pepper Named Chairman; Johnston, Mirsky Elected To Board Of DirectorsJ. David Pepper of Pepper Construction Company

has been selected by the Board of Directors to serve as the 49th Chairman of the Builders Association. He will join Vice Chairman John Russell of W.E. O’Neil Construction Company and Treasurer R. Lynn Treat of Ryan Companies US, Inc. as volunteer offi cers for the Association in 2008.

Pepper will be the third member of his family to serve as Builders Association Chairman, following his father Richard S. (1967-68) and his brother J. Stanley (2001-03). He will replace 2007 Chairman Paul Hellermann of Bulley & Andrews.

Benjamin Johnston of James McHugh Construction Company was welcomed onto the Board after being elected to a three-year term, and James, Schaeffer & Schimming owner Sherwin Mirsky was elected to a two-year term.

The Builders Association would like to thank Hellermann for serving Chairman in 2007 and would also like to thank three more Directors whose terms on the Board have been completed: Sheri Tantari of McShane Construction Corporation; Dana Thorne of Thorne Associates Ltd.; and John Benz of William J.

Scown Building Company.J. David Pepper is the Chairman and Chief Executive Offi cer

of Pepper Construction Group and served as the Vice Chairman of the Builders Association in 2007. He serves on the Advisory Board of Directors for Good Shepherd Hospital and is a member of the Northwest Suburban Council Boy Scouts of America’s Executive Board.

Russell, a Vice President at O’Neil, has overall responsibility for all retail projects. He has a keen interest and signifi cant knowledge in the area of information technology and has led several IT implementations for O’Neil. Russell also served on the O’Neil Safety Committee and has refi ned the company’s policies in that area.

Treat has 35 years of hands-on experience in construction. As Director of Field Operations for Ryan Companies, he coordinates cost estimating, technical design and development, construction activities and subcontractor negotiation.

Johnston is the Vice President and corporate counsel for McHugh Construction, oversees all legal matters for the contractor and advises the executive team on corporate and strategic matters. He is a trustee of the Carpenters’ Welfare and

Builders Association President Al Leitschuh presents McShane Construction Corporation Senior Vice President of Marketing Sheri Tantari with an award for her service on the Builders Association’s Board of Directors. Similar awards went to John Benz of William J. Scown Building Company and Dana Thorne of Thorne Associates, Inc., while Sherwin Mirsky of James Schaeffer & Schimming and Benjamin Johnston of James McHugh Construction Company accepted positions on the Board of Directors.

Johnston MirskyTreatRussellPepper

please see Directors, page 10

Moebes Headlines

Annual Meeting

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In the far left photo, Phil Diekemper of Ceco Concrete Construction accepts a plaque for 10 years of membership in the Builders Association from 2007 Chairman Paul Hellermann of Bulley & Andrews, LLC. Ceco Concrete was one of seven companies to receive anniversary awards. In the other photo, Hellermann receives his award from incoming Chairman J. David Pepper of Pepper Construction Company.

Annual Meeting

Since helping to found the AGC of America in 1918, the Builders Association has a tradition of helping Chicagoland construction companies keep their eyes on the future and spot developing trends.

December 11, those eyes were on Crate and Barrel Director of Construction John Moebes, who outlined the advantages of Building Information Modeling as the headline speaker at the Association’s Annual Meeting at the Fairmont Hotel.

This marked the second consecutive year that the Annual Meeting was held downtown, and 160 construction industry professionals and community leaders came to renew old acquaintances and establish new ones. Attendees were greeted in the beautifully adorned International Ballroom. Piano music played during a social hour that included hors d’oeuvres and an open bar. Dinner was served from three carving stations.

The program featured outgoing Builders Association Board of Directors Chairman Paul Hellermann of Bulley & Andrews, LLC commenting on the state of the association and 2008 Chairman J. David Pepper of Pepper Companies going over the strategic plan for the future. Retiring Directors were recognized for their service before Pepper welcomed new Directors Sherwin Mirsky of James Schaeffer & Schimming and Ben Johnston of James McHugh Construction Company.

A number of companies were recognized for landmark anniversaries with the association, including:

The Lombard Company (50 years)Telander Construction Company (50 years)Case Foundation Company (40 years)Interior Alterations (30 years)Takao Nagai Associates (20 years)Ceco Concrete Construction (10 years)Custom Contracting, Ltd. (10 years)

Representatives from contractors and

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suppliers listened closely to Moebes, whose presentation demonstrated what owners are looking for in contractors and why companies who use BIM are attractive to owners like Crate and Barrel. While the area in general has been slow to adopt the technology, great strides have been made in the last three years, and Moebes pointed out why contractors who don’t look into BIM now could fi nd themselves shut out in the future.

The Builders Association awarded its Community Builder Award to Illinois Senate President Emil Jones, Jr., who was unable to attend due to legislative duties.

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please see Association, page 10

Call the Builders Association.As a member of the Builders Association you already know

we can help you in a dispute with a union and that you can join our OSHA partnership to save your company time, money and problems. What you may not know is that many of our resources come from our members, which is why they are of value to you. As a member, you benefi t from the collective knowledge of all the other members.

A company cannot thrive if it’s not of value to its customers, or in our case to you. At the Builders Association we’re focused on providing you with knowledge and services that will be of value to you and your businesses.

Collectively, we hope that our knowledge of the construction industry provides valuable support to you when you need it most.

“Handling a problem on your own can be diffi cult,” explained Builders Association President Al Leitschuh. “Not too many people know the right people, so an easy way to be in the know is to be a member.

“We act as consultants and advocates for contractors. We can bring our collective infl uence together to help solve problems and we can get involved in almost any construction issue.”

Many of these issues involve labor, and we can provide assistance to contractors, which is exclusive to membership. For instance, we provide a legal hotline to our members, which allows them to consult with a lawyer free for 20 minutes.

“We save our members money by being a resource for them,” said Denise Herdrich, Director of Labor and Safety. “Instead of hiring a lawyer, they can call us with a question and we can fi nd the answer for them.”

We can help contractors avoid other issues, such as jurisdictional disputes. Before assigning work to any trade an employer can call us to make sure that there will be no jurisdictional confl icts. Because we work with so many different companies and associations we have the resources to assist members when they call.

While labor issues are among the most important we deal with, safety issues are another top priority. All contractors must interact with OSHA and meet specifi c safety requirements, but the BA’s partnership is unique in that it allows an agreement to be negotiated between the Association and OSHA rather than on an individual level. This opportunity allows contractors to avoid confl icts with OSHA.

The Builders Association’s Partnership is divided into three levels (Bronze, Silver and Gold) to encourage companies with already strong safety programs to stay strong and continue to improve. The Partnership can turn the often adversarial relationship between contractors and OSHA into a cooperative one.

To reach the Bronze level, a company must only develop and implement a written safety and health program, conduct a weekly safety employee meeting and document self-audits.

Beyond receiving recognition for participating in the Partnership, members will also notice the effect it has on their fi nances.

“It does affect the bottom line because the more informed a company is about safety issues, the less injuries the more productive they are,” said Herdrich.

Another initiative taken by the Builders Association is the Construction Career Opportunity Program (CCOP). The CCOP

provides construction trades training through Dawson Technical Institute, then gives students an opportunity to interview with contractors. It is a collective effort of the Builders Association and various community organizations, and makes sure that participating in this program is benefi cial to both contractors and the community.

Dawson and the Builders Association work closely with one another to ensure that graduates of the program are prepared to work in the construction industry immediately upon completion of their program.

Vice President Michael Schultze explained, “The CCOP is about increasing diversity in trades and acting as a conduit for minority students to fi nd a job upon graduation.”

For our members the value comes in the form of having the fi rst opportunity to hire some of the most accomplished graduates of the program.

Because we try to work with people in every aspect of the construction industry we are able to educate our members about new developments almost as soon as they are happening.

The Builder, the Builders Association’s newsletter, focuses on conveying new knowledge to our members.

For instance, we work hard to include “expert” articles in each issue. These articles are typically authored by someone who is very experienced in their industry’s fi eld. We often include articles on

Association, from page 1

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M e m b e r M i l e s t o n e s

Supplier ShowcaseThe products and services offered by the Builders Associ-

ation’s Supplier members are among the best in the area in their fi elds. With their association membership, these compa-nies support the Chicagoland construction industry.

The Builder will highlight suppliers in the Supplier Show-case, which will feature comments or information on a con-struction issue from those members.

This issue offers tax tips based on recent changes in code regarding contractors and subcontractors.

Robert WeismannWarady & Davis LLP

If your company has never done so, Warady & Davis sug-gests that you pay to make an election on your personal tax return to be treated as a real estate professional. There are several criteria which must be met in order to qualify. If you do qualify, you may be able to re-classify some rental real es-tate activities you are engaged in from passive to active. This would allow you to accelerate the deduction of losses you may have generated from these rental real estate activities.

According to Weismann, the calculation of the Production Activities Deduction for 2007 changed in a number of ways, most notably:

McShane Construction Company hosted a groundbreaking for a new 294-unit luxury rental community in Downers Grove, The Residences at The Grove, which features a precast exterior and masonry accents. The residence is comprised of 270 condo units, 24 rental townhomes, as well as a courtyard and clubhouse with full amenities.

McShane Construction Company was selected to build the fi rst aloft hotel in the Midwest. The six-story, 251-room aloft Chicago O’Hare hotel located in Rosemont is being built with a precast concrete and masonry exterior, and is scheduled to be completed in July 2008.

Henry Brothers Company recently completed Beecher Junior High. The school received a grant to help pay for a Domestic Water Solar Hot Water System. The system is intended to complement the domestic hot water heating system in order to reduce fuel costs.

McShane Construction Company recently completed a mixed-use building in Oakbrook Terrace, IL. The Regency Place luxury

The Residences at The GroveMcShane Construction Corporation

include a vegetative roof.

Clark Construction Company completed renovations to McCormick Place West eight months early and on budget. The $882 million expansion was completed on August 2 and added about 470,000 square feet to the building. McCormick Place is LEED-certifi ed and has a green roof as well as a high-effi ciency HVAC system.

William Kroeger, Timothy Puntillo and Raymond Wojkovich of Bulley & Andrews, LLC have all been promoted from Senior Project Manager to Vice President.

Bulley & Andrews, LLC recently completed The Latin School of Chicago’s new middle school. The four-story building includes student labs, resource centers, classrooms and offi ces as well as other facilities.

W.E. O’Neil Construction Company’s concrete group topped out 1401 S. State Street Apartments, a 22-story, 278-unit concrete apartment tower. The project is slated for

The percentage of qualifying income eligible for the deduction has increased from three percent to six per-cent.The deduction is still limited to 50 percent of wages paid. However, only wages paid in a qualifying produc-tion activity will qualify. For example, in prior years if you paid wages to a nanny they would qualify. For 2007, they will not.If you are a partner in a partnership or a shareholder in an S corporation, you can consider all the qualifying wages from those entities when computing your per-sonal Production Activities Deduction. In prior years this was severely limited. As a result you can use wages paid from one entity to help you meet your 50 percent limiation test for income from a different entity.

Warady & Davis LLP1717 Deerfi eld Road

Suite 300 SouthDeerfi eld, IL 60015

Phone: 847.267.9600Fax: 847.267.9696

www.waradydavis.com

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building has 112 residential units, as well as retail space. McShane also built the neighboring Volare restaurant, as well as the Ayna Day Spa & Salon.

The Lombard Company was awarded a $9.3 million contract for the new Engine Company 18 Fire House. The new fi re house is set to replace the oldest operating station in the city at 1370 S. Blue Island Ave. The project will be overseen by the PBC. Among many innovations, the building will be built according to LEED specifi cations, and will

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Labor News

Inside The Labor ShortageThe Second In A Series Detailing Problems And Solutions For Low Workforce Numbers

BY ARTHUR HEIMBACH, SABINE HOOVER, NICK SCHUBERT

AND NICK HIERFMI

Decline in the Interest to Work in Construction

From an economic perspective, the construction industry is one of the four types of goods-producing industries with the other three being manufacturing, agriculture, and mining. With our current era being repeatedly and consistently called a “postindustrial society,” it follows that construction fi ts more with the past than with the present. From a societal perspective, construction is associated with growth.

During the industrial revolution, there was tremendous need for factories to be built, which led to a need for more urban housing to house the employees who relocated from the farmlands. This of course led to the need for more markets and domestic-support retailers that the urban dwellers required. With the advent of the automobile there were roads and bridges to build. As companies grew, skyscrapers were needed to provide offi ce space. From all this growth, we have many old photographs of the brave builders high atop buildings and bridges, triumphant in their great accomplishments.

All that, unfortunately, is now considered “old school.” Today, large parts of our society associate growth with urban sprawl, the paving of America, traffi c congestion, increased air and water pollution, increasing demands on limited resources of water, etc. To the extent that construction is associated with growth, all the perceived negatives of growth become equally associated with construction. Also, construction requires extensive amounts of manual labor, and this is the Information Age where work is done with minds and computers, not by hand.

“New school” aspirations and opportunities are defi ned by either being part of “the next big thing” or doing good things. It’s not just about the money, but it is also about being on the cutting edge or being part of the solution. And in both cases, being respected is critical. Construction, while potentially fi nancially rewarding, doesn’t fi t this new mold.

In addition, our current society values having a college education, making individuals that take positions in construction (not requiring a degree) feel less successful. Kids who grow up with parents and parental-peers with college training are likely to feel out of place in a craft and are more likely to prefer professional and management positions. Our current school programs reinforce this since opportunities in undergraduate programs lead to training in general management orientations and not those industry-specifi c.

For the most part, only people with a history of experience in construction (usually through the immediate family, relatives, or close friends) seek out construction for a management career.

please see Labor, page 9

Construction is not a glamorous industry. It is not cutting-edge and it is not seen as a place for great opportunities.

On the other side, kids who grow up with parents and parental-peers without college training are often pushed to get a college education, as that is seen as the way to a better life. While some craft-workers can become reasonably wealthy, the majority of people are of average talent, and there exists a perspective that an average person with a college degree will have a “better life” than an average person without a degree.

Insufficient Skill-Appropriate Candidates It is important to note that in reality, an actual shortage of

“bodies” is highly unlikely in the future; in fact, the shortage of labor in construction most realistically means a shortage of adequately trained, skilled, and productive people (Craft Labor Supply Outlook, 2005). The U.S. will have plenty of “bodies” in the appropriate age groups. The problem lies in the proportion of those bodies who will be headed toward construction and as well will achieve the needed training to fi ll the demand for skilled

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Labor, from page 8

crafts workers.For the crafts, the low demand for trade

programs provided through high school and community college has led to their near extinction. The people who are now entering the union and other industry-developed trade training programs are predominantly laborers seeking to move up. The supply of laborers is not expected to be so much of a concern, as these jobs are being fi lled by the large number of immigrants, particularly from neighboring Spanish-speaking countries. These laborers, while providing a steady stream of entrants to the crafts training programs, are not leading to any signifi cant increases in the number of graduates, due in part to their numbers not being suffi cient to fully replace the prior levels of entrants as well as a greater attrition rate. Also, for more technical crafts, particularly electricians, the need for intellectual skills in math and science rather than only physical skills increases the diffi culty of providing cost-affordable programs, in terms of dollars as well as time.

College education is also a critical issue for management positions that are also experiencing the effects of this labor shortage. While research indicates that interest in many construction management programs is not a persistent problem for universities, there is a decline in the interest of more technically based engineering degrees. Many students feel intimidated by the math and science requirements associated with such degrees and therefore look to other options. Many of these students are of the dot-com era and do not want to have a limited degree but rather a broad knowledge to avoid some of the employment pitfalls of the late 1990s.

Increasingly a Multi-Cultural - Not Just Spanish-Speaking

– Workforce The news of composition changes in

the U.S. construction labor force has been around for a while. It would be hard to be in the construction industry and not notice the increasing number of Spanish-speaking workers in the fi eld. These changes have been occurring during the past two decades, and the future portends more of the same. In order to meet the signifi cant labor demands ahead, the construction industry will likely continue to rely heavily on foreign workers. According to the BLS,

Latinos accounted for about 20.3% of the workforce in the construction industry in 2003 and 21.4% in 2004. According to estimates by the CLRC’s Craft Labor Report (2005), Latinos represented almost a quarter of all construction craft workers in 2003.

Of the roughly one million additional workers in the 2012 construction industry workforce (above that of 2002), FMI projects that more than 33% of these new workers will be Latinos. This trend toward an increasingly Latino construction workforce could pose some serious challenges for owners and contractors, particularly in the South where many of the recent Latino immigrants are unauthorized, have relatively little education, and speak little or no English (Pew Hispanic Center). Consequently, many Latino workers are employed in relatively low-skill and low-wage occupations, and may have diffi culty advancing to fi ll the void of more demanding positions such as electrician, superintendent, estimator, project manager, etc.

At a slower rate, but nonetheless increasingly, the proportion of African American, Asian, and other races in the construction industry is expected to rise further, with a net effect that the proportion of non-Latino Caucasians entering the construction industry will drop from historic levels of 70% or more down to nearly 50%.

Wildcard —Immigration Laws In the aftermath of the September

11, 2001, terrorist attacks, the passage of the USA PATRIOT Act has increased restrictions on both the visa approval process and the terms of immigration status for foreign workers.

Despite tighter regulations, the construction industry was the second largest domestic employer of unauthorized foreign nationals in 2004, employing 17% of the 6.3 million unauthorized workers in the U.S.

Many of these unauthorized workers are Mexicans and other Latinos, working in both skilled trade and unskilled labor positions. Mexicans and other Latinos represented 81% of the unauthorized immigrants in the U.S. in 2004, while unauthorized workers represented 20% of the construction laborers and 12% to 27% of skilled trade workers such as carpenters, painters, roofers, and drywall installers.

The impact of immigration restrictions on the growing labor shortage in the construction industry is not limited to general labor and the traditional construction trades.

The shortage of qualifi ed engineering and management workers has been similarly compounded by the USA PATRIOT Act through increased restrictions on foreign students. Traditionally, due partially to lax student visa restrictions, signifi cant numbers of foreign students have enrolled in baccalaureate and graduate level college and university programs in the U.S. By the 2002/2003 academic year, the last year of enrollment unaffected by the USA PATRIOT Act, international students represented 4.6% of college and university enrollment in the U.S.

However, the numbers of foreign students enrolling in U.S. graduate programs like engineering have been decreasing since September 11, 2001, and the enactment of the USA PATRIOT Act. According to the Institute of International Education (IIE), the overall enrollment of foreign students in U.S. colleges and universities decreased by 3.1% between the 2002/2003 and 2004/2005 academic years, and in the 2004/2005 academic year, foreign students represented only 4% of college and university enrollment in the U.S.10 This fi gure suggests a more dramatic decrease when compared to the increase in foreign-student enrollment that the IIE recorded in the preceding three academic years — a 17.6% increase between the 1999/2000 and 2001/2002 academic years. Furthermore, the IIE also reports that foreign engineering-student enrollment dropped 2.4% between the 2003/2004 and 2004/2005 academic years, while foreign students’ business and management program enrollment dropped 8.0% in the same period. Decreasing foreign student enrollment is likely to escalate the existing shortage of working engineers and formally educated construction management professionals in the construction industry. In 1999, foreigners who originally entered the U.S. with graduate student visas represented roughly one-fourth of the foreigners working in fi elds like engineering under H1-B visas. Today, with fewer foreign students matriculating in the U.S., there will be fewer foreign workers seeking employment in the U.S. after completing their degree programs.

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OGLETREE DEAKINSAttorneys at LawConstruction Industry Group

Two First National Plaza, 25th Floor • Chicago, Illinois 60603P: 312.558.1220 • F: 312.807.3619 • www.ogletreedeakins.com

LIFTING SERVICE TO NEW LEVELS

Association, from page 6

trust fund withdrawal liability that are written by lawyers who work closely with the Builders Association, as well as technology articles like those written about BIM. All of these aim to inform our members about new construction industry developments.

“We can convey our knowledge to our members and help them to understand different construction issues and topics,” Leitschuh said. “We carry infl uence and knowledge across all services and we bring experts to our members.”

Because we hope to always provide our members with valuable knowledge about industry technology and developments in a timely manner we send our weekly email, the Builder Blast in conjunction with the newsletter.

Our goal with the Builder Blast is to keep our members in front of developing trends.

“The Blast accomplishes some of the same things as The Builder, but it’s geared toward keeping a contractor in front of timely issues,” said Communications Manager Andy Cole. “It’s an effective way for our members to know about legislative events and get updates on safety and labor issues as those things happen.”

Along with keeping our members informed, we also coordinate various meetings throughout the year where our members can network with one another.

“We bring people together where they can meet face-to-face with one another. There’s value in this because we can learn from one another. In this way, we provide our members the opportunity to be better at what they do,” explained Leitschuh.

“While we collaborate with our members often, we also work with other groups in order to provide our members with as many resources as possible.

“We have infl uence in the marketplace because we are involved with local organizations and government institutions. Our

members get a subsidiary benefi t from this. There is a positive reinforcement that lies in the image or recognition of being a part of our association.”

In terms of government relations, we act as an advocate for our members, and a member can benefi t from us when it comes to our ability to infl uence laws that will impact the construction industry.

Because we collaborate with lobbyists our members’ opinions on the pending bill are passed onto Springfi eld. In this way, our members are once again on the forefront of what’s happening in the construction industry.

“We help all contractors,” Leitschuh stated. “We don’t have a program that helps only members, but the more people that get involved, the more effective and infl uential our views can be.”

Pension funds and a representative to MARBA. A member of the Illinois bar, Johnston joined McHugh in 1996.

Mirsky has worked for James, Schaeffer & Schimming for 40 years and has co-owned the business with Thomas Rood since 1976.

In addition to the offi cers, Hellermann, Johnston and Mirsky, the Builders Association’s 2008 Board of Directors will include:

George W. Ferrell, Henry Bros. CompanyLeon LaJeunesse, Custom Contracting, Ltd.John O’Malley, Case Foundation CompanyHoward Strong, The George Sollitt Construction Company

••••

Directors, from page 4

11

Safety NewsV O L U M E 1 1 ; I S S U E 6V O L U M E 1 1 ; I S S U E 6

Safety First For Temp-Heat UsersFour Contractor Safety Forums during 2007 gave Builders

Association safety professionals a better handle on some of the safety issues facing the industry. At the November 15 meeting, those issues included temporary heat on a jobsite and background checks for employees.

Rob Crowe, Plant Operations Manager for Country Gas, conducted a temp-heat safety presentation. He fi elded questions about temp-heat practices from attendees, who were trying to prepare their jobsites better for the winter months.

“There’s nothing really major that’s changed about the way it’s applied lately, but we are starting to see more cities and villages increase restrictions on using propane,” Crowe said. “I personally don’t see any true reason for it, but any kind of hazardous material warrants a greater focus on safety.”

Crowe went over the advantages of temp-heat and detailed the safety measures necessary when dealing with propane. With every accident involving propane or temporary heat, scrutiny increases and rules can change.

“Any kind of black eye involving propane makes us look bad,” Crowe said. “I’ve been with Country Gas 18 years and I’ve seen a lot of strange things on construction sites. The big focus should be on using what we’ve been taught about safety and avoiding the things that lead to those accidents.”

In the wake of the Department of Homeland Security

issuing its No Match Rule and the striking down of that rule by a court in California, the use of background checks and the rules surrounding them became a hot topic again at November’s Forum.

The rule, meant to crack down on unauthorized aliens, would have given contractors 90 days to resolve a discrepancy between the name of an employee and the Social Security Number that employee provided. The AGC of America and other business groups fought the implementation of the more stringent guidelines, and a California court’s ruling will halt the implementation of the law until a trial occurs.

“There are a lot of things to keep in mind,” said Safety Committee Chair Bob Smith of The Levy Company about background checks. “When it comes to background checks, the No Match Rule, which is on hold right now, is something we’re going to have to follow and be aware of, along with the credit reporting act. You have to know going in what you can and can’t ask.

“A lot of people are concerned about the application of these different laws. It’s a lot to keep track of.”

Safety Forums allow Builders Association members to pose questions about complicated jobsite issues and hear how their peers at other companies handle those same problems. The next Forum is scheduled for February 7.

T H E B U I L D E RT H E B U I L D E R

12

BuilderThe

The Builder is published periodically by the Builders Association, a trade association of com-mercial, industrial and institutional contractors

and affi liated industry fi rms dedicated to quality construction in the Chicagoland area since 1906.

2008 Board of DirectorsChairman

J. David PepperPepper Companies

Vice ChairmanJohn Russell

W.E. O’Neil Construction Co.

TreasurerR. Lynn Treat

Ryan Companies US, Inc.

Immediate Past ChairmanPaul Hellermann

Bulley & Andrews, LLC

Builders Association StaffHave a construction-related problem or question? Call your professional trade

association. While each staff member can assist you, you may fi nd it helpful to speak directly to the individual who has primary responsibility

for a particular area.

Al Leitschuh, PresidentBA Goverance

Industry and Community RelationsAGCA Liaison

Mike Schultze, Vice PresidentIndustry Relations, Government Relations

Denise Herdrich, Labor and Safety Director

Ryan Schoonover, Membership ManagerMarketing, Membership Development

Andy Cole, Communications Manager

Stacey Kelly, Project CoordinatorAdministration, Education Programs

Kelly Fierro, Accounting

Liz HumrickhouseGrace Reband

Communications Interns

George FerrellHenry Bros. Co.

Benjamin JohnstonJames McHugh Construction Company

Leon LaJeunesseCustom Contracting, Ltd.

John O’MalleyCase Foundation Company

Sherwin MirskyJames Schaeffer & Schimming

Howard StrongGeorge Sollitt Construction Co.

Builders Association9550 W. Higgins Rd., Suite 380

Rosemont, IL 60018(847) 318-8585www.bldrs.org