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EREST - markets will ve can expect egulation and i. We can excharacterized 9 to eliminate ' problem is a ;cts. Contracquipment and >unt" projects jrs, especially id on income, or tax paying he way to adugh coercive, j cooperative. istry is to con ave taken and ob of convinceasonable and -icans, we will an. ;r 4 to replace on teams and roperation and The Management Magazine of the Construction Industry PUBLISHER -,oert Beatty, Executive Vice president iisooated General Contractors of America ASSOCIATE PUBLISHER Oonaia a Scon Ass r Executive D-rector AGC director of information William Jayne EDITOR Diane 8 Snow ASSOCIATE EDITOR Jerome N Jefferson PUBLICATIONS MANAGER Patncia Whittles MARKETING manager Becky Lower CONTRIBUTING EDITORS AGC Newsletter 3uitdmg Construction Education Employment & Training -rternationa' Constr Heavy Industrial Highway Labor Relations Legal Legislation Mumcioai Utilities Safety William Henry Campbell Reed Ernie Jones Chris Monek Fran* Scnneiier Oavid Johnston Jonn Genniie Dennis Bradshaw Richard O'Brecht Marvin Schecnter Chuck Carroll James Cromwell Robb' Kimball Ingrid Voomees Joseon Asnoon Arthur Scnmuhl CCNSTRuCTOR (ISSN0162-619H .soubiished mcn-.v 3y the ASSOCIATED GENERAL CON'pactqrs of AMERICA, 1967 E Street, N W , Wasnirgton. DC 20006 Cocvright 1961, Associated General Contractors of America Subscription rates U S and Canada. 51C00 oer year, 515 00 - 2 years. 325 00 -3 *ear foreign $22 00 oer year. $44 00 - 2 years. $66 DO - 3 years. Single copies regular issue u S and Canada $2 00. foreign, $3 00 AGC DIRECTORY ISSUE 335 00 Controlled circulation postage paid OLIVE BRANCH. MISSISSIPPI POSTMASTER Send form 3579 address change to CONSTRUCTOR. 1957 : Street. N W . Wasnmgton. O C 20006 (or address of fulfillment house! CcntnQutions should be mailed to CONSTRUC TOR 1967 E Street. N W . Washington. D C 20006 Unsolicited materials must be accom panied oy return oostage. Acknowledgement of arw decision upon such materials shall be made tinin SO working days. This magazine will assume no responsibility for loss of or damage to such material Any material acceoted is subiect 10 revision as necessary in our sole discretion to meet 'he requirements of this publication Upon Duplication and n accordance to prior agreement, payment may be made at our current rate, which covers me author's and/or contnbutor's right, ti tle ano interest m and to me material mailed, in cluding. put not limited to manuscripts and/or material shall constitute an express warranty bv the contributor that the material is >n no way an in fringement on the rights of others Material Published m CONSTRUCTOR remains the proper ty of the magazine No material, nor parts thereof, mav oe reproduced nor used out of context, without prior, specific approval of and prooer credit to the magazine Advertising materials should be forwarded to Advertising Department. 1957 E Street N W . Wasnmgton. D.C 20006 Phone 12021 393-2040 FEATURES Business Management: Recapitalization and Estate Freezing in the Family Business Recapitalization and estate freez- ing are two popular concepts m family corporation financial planning today RoOert M Meyers, president. Management Planning Inc , Princeton. \ j presents a detailed discussion of these concepts 9 AGC Rates Congress For the eighth year, constructor dud- iishes AGC's rating of Congress which includes the voting record of everv senator and representative on issues of vital importance to tne construction industry This pull-out pamphlet can oe saved for future reference 15 Reagan Administration.. .and the Morning After President-elect Ronald Reagan beneves business, not government holds the solution to many of the nation s economic orooiems CONSTRUC TOR analyzes some of Reagan's proposed strategies for addressing tnese concerns 27 1981 AGC Construction Forecast In an AGC survey, memoers see a small increase in construction volume and an 11 8 percent inflation rate, resulting m a real dollar decrease of 5.1 percent in the 1981 construction market 28 Occupational Forecast 1981 AGC's occupational division chairmen assess the outlook for construction in 1981 Forecasts for building, heavv- mdustrial, highway, international construction ano municipal-utilities are n- eluded. 30 A Conversation With Senator Robert T. StaffordSenator Stafford^ Vermont's senior senator, is the new chairman of tne Senate En vironment and Public Works Committee. AGC President ival Ciancnette ano M-U Division chairman James Pizzagalli of Vermont recently met with Senator Stafford and discussed several key construction issues. 36 NEWS Newsletter Hallmarks of 1961 convention AGC commends fVA for O'O 'errmgs SAC Oacks contractors argument mat MBS compliance 'S matter of msponsiOihry. nor 'esoon s/veness Deadline approaching for Chapter of tne fear, Cashman Trophy entries international construction news President s Message Management Notes Labor Notes legal Matters Political Action Money in the Pocket Classified Advertiser's Index Commentary DEPARTMENTS Return to reason - in the puphe mterest Edual Access to Justice Act CLPC Bargaining information wnen >t counts Senai aronrauon rVno iVOfiJ Is your cost control system really productive? AGC PAC proves 1ts worth A 38 4C 41 42 49 49 50 Is there a possibility that construction is "on the long road to COVER recovery'" This forecast issue looks at the 1981 construction outlook m kev markets as well as the impact inflation and government regulations are having on the industry ARTWORK by La Haywood. JANUARY 19S1 Vbpa vol IXIII No 1 PLAINTIFF'S EXHIBIT B&R-156 PUBLISHER ttj Executive v>ce President lene^ai Co^irac!ors of America IG ICCiATc p<j6L-`SHeft Oanaia a Scon ttecudve Oirectsf. AGC ' DR OP .NPORMATSON Wiiham javr.e Editor Diane 3 Snow 5SOC1ATE EDITOR i'ome N jef'fe-son the exi . CATIONS MANAGER >rtnt to 3atncia Whittles 3nomy. -<ETiNG MANAGER 3ec*v Lower totalled ,'RiBUTiNG EDITORS Wished. e-vsietter Wifl^m Henry Suiting CamDOen Reed i 65,603 : ration, final we iaucauon c.nent fir -/airing * Constr '',dusTnef mgnwav "etetions Ernie jones Chns More* Fran* Schneiier David Johnston John Geruule Oenms 8radshaw Richard O'Qrecht Register legal .egisiation ousing p uprise pi V, new utilities Safety Marvin Schechter Chuck Carroll James Cromwell ftobo< Kim&ail ingrio voorhees joseon Asnooh Arthur Schmuhl ion cont 'OR (ISSN 0162-619H is published nsportatii ASSOCIATED GENERAL CONAMEft'CA. 1957 E Street. N W . DC 20006 SCoovngm 1961. era< Contractors of America :ations," ON RATES U S and Canada. $15 00 - 2 years. $25 00 -3 ig period >22 00 oer vear. $44 00 - 2 years, ears Smgie cootes regular issue fore the n jnade $2 00. foreign. $3 00- AGC SSU6 $36 X to our pr : 'Cuiation postage paid OLIVE -"SSiSSiPPf POSTMASTER- Send acres* change to CONSTRUCTOR. NW Washington. O C 20006(or .(ment house) e and mo( :->s should be maiied to CONSTRUC- the Fedei : Street. N W , Washington, 0 C. >c `ed materials must be eccom- a return \irn oostage Acknowledgement of -con such materials shall be mede cr<<ng days This magazine will ^Dcnsibiiitv lor loss of or damage to > Any material accepted is subject to f must cor 'ecessary >n our sole discretion to 'Cuirements of this publication. Uoon Now, mor ^0 n accordance to onor agreement, to develop 'r. oe made at our current rate, which cr s and/or contributor s right, ti- in the wal n and to tne material mailed, in* "ioi limned to manuscnots and/or in ever, constitute an express werranry by or mat the material >s >n no way an m- proper rolel cn <ha rights of others Material CONSTRUCTOR remains the prooer- ^me No material nor parts thereof. ^PCuced nor used out of context. 1 specific aoorovai of and prober Tiagazme ^ materials should be forwarded to : Deoartmem, 1967 E Street, NW,, 0 C 20006. Phone (2021 333-20*0 The Management Magazine of the Construction Industry FEATURES Business Management: Oo You Need Professional Liabil ity Insurance? Exposure to professional liability loss occurs as many contractors provide proiect owners with an increasing amount of services. This article defines some of the professional liability exposures which face to day's contractors and provides alternative ways of dealing with potential ex posure to loss. 11 Paperwork Management: How A Consultant Can Help You It seems that everytime a contractor turns around, the government and other forces are requiring more documentation. As a result, many con tractors are developing sophisticated paperwork management procedures to help them survive the age of the "paperwork explosion." In this article, an ex pert gives advice on this topic. 20 How to Select an Accounting Consultant Have you had trou ble selecting an accounting firm? Are determining criteria as difficult for you as the selection itself? In a business with as many variables as contracting, knowing how to select accounting services appropriate to your needs is a top priority. Detailed guidelines for selecting qualified accounting consultants are presented in this feature. 23 Consultants to Help Contractors Deal With and Avoid Claims Problems Claims problems have become almost inevitable in today's world of multi-million dollar construction projects. The resulting legal actions have increased so dramatically that many contractors are hiring con sultants to help them deal with and avoid claims problems. This feature presents a detailed discussion of developments in this area. 26 AGC Informs Reagan Team of Legislative Issues The full text of a letter sent to the Reagan transition team from AGC's Executive Direc tor of Congressional Relations. Richard C. Creighton, this letter is an example of the continuing involvement AGC has and will have with the Reagan Ad ministration. 36 NEWS Newsletter Alabama Branch wins mor regionai MSS case. AGC Convention, register now Contractors meet with New Hampshire freshman Senator Rudman Resuits are earned for new directors, netionai officers. OFCCP pvbbshes new affirmative action rules . CLRC wrap-up protections on wage settfements ZoOei becomes new NA VFAC commander OSHA's cancer poMey defeoons caused by the benzene decision intemsttonai construction nows . ?5 DEPARTMENTS President's Message Return to reason commitment to a new beginning Management Notts Labor Notes Strategic pianrung - key to success Pension Fund investment Robey an issue for the GO'S Political Action Senate committees of interest to contrecrors Money m the Pocket is a SuOchapter S election for you? Classified Advertiser's Index Commentary AGC continues campaign against TVA *i m-house construction optic/ The ledger sheet suggests the great emphasis on management COVER practices and techniques in today s complex and sophisticated construction industry. Specialized consultants are playing an increasing row in this changing industry. Vbpa FEBRUARY 1981 Vol. LXItl No. 2 JdIM1MTTifOlllnUnDfilB>TlTlMf]nJnyfn<l The Management Magazine of the Construction Industry FEATURES Business Management: Cash Budgeting -- A Must for Contractors The cash budget is one of the most useful financial and planning tools known. Here's a convincing discussion of why the construction industry should adapt it. 13 Welcome to Washington, D.C. Here's an explorer's guide to the city, for free time before, during, or after AGC's 62nd Annual Conven- tion/CONSTRUCTOR Exposition. 22 Construction -- Changing the Nation's Capital Washington D.C.'s Metro mass transit system, 1-66, the East Wing of the National Gallery of Art and the National Air and Space Museum are lust a few of the recent con struction projects that are changing the face of the national city. 32 The 1961 AGC CONSTRUCTOR Exposition An exciting preview of the products, exhibitors and schedule of the 19th Annual Exposi tion. Booth layout and exhibitor listings are included for easy reference. 39 Return to Reason -- The Message of the '80s m March 1980. Ival R. Cianchette set the theme "Return the Reason" for his year as AGC's president. AGC, through President Cianchettes leadership, has achieved notable success in setting a tone of a return to reason for the '80s. This feature repnnts all of President Cianchette's CONSTRUCTOR editorials. 48 NEWS Newsletter Controversy continues in 8ta) program Regulations freeze a campaign promise turned to action Hendnckaon honored by Motes Houston construction boom AGC seeks records on construction by government forces international News M RbqxxibI News . 68 Newsmakers 73 President's Massage Management Maces Labor Notes legal Matters Political Action Money in me Pocket Classified Advertiser's Index Commentary DEPARTMENTS /latum roimscn a review . . Sanding an amotevaa atmad? Unon lew sum to enforce ora-hiie agreements Contractor's nght to sue architect/engineer Kay comm,trees oI ina Mouse Contract dams 4 7 56 58 60 64 *> 81 82 The visual theme of the cover echoes AGC's tone for the coming COVER year, and highlights the feature, "A Return to Reason - The Message of the '80s. " PHOTOS: Cover background and inset of Reagan/Bush and page 22 UNIPHOTO vbpa dn MARCH !961 Vol. LXIII No 3 The Management Magazine of the Constructfbn industry PUBLISHER Hubert BeetTy. Executive Vice President Associated General Contractors of America ASSOCIATE PUBLISHER Oonaid A Scott Ass t. Executive O'ractor. AGC OlRECTOR OP INFORMATION William Jayne editor Diane B Snow ASSOCIATE EDITOR Jerome N Jefferson PUBLICATIONS MANAGER Patnoa Whittles MARKETING MANAGER Becky Lower CONTRIBUTING EOITORS AGC Newsletter Building Construction Education Employment & William Henry Campbell Reed Erne Jones Training international Constr Heavy industrial Highway Labor Relations Legal Legislation Municipal Utilities Safety Chris Monek Frank SchneRer David Johnston John Gentilla Denna Bradshaw Richard O'Brecht Marvin Schechter Chuck Carroll James Cromwe* Robta Kimball Ingrid Voorheas Joseph Ashooh Arthur Schmuhi CONSTRUCTOR USSN0162-6191) spublished monthly by the ASSOCIATED GENERAL CON TRACTORS of AMERICA, 1967 E Street. N.W.. Washington. 0 C. 20006. Copyright 1981, Associated General Contractors of America. SUBSCRIPTION RATES U S. and Canada. $10 00 oer year. $15.00 - 2 years. $25.00 - 3 wars, fore^n $22 X per year. $44.00 - 2 years. $66.00 - 3 years. Single copies regular a. U.S and Canada $2 00; fore^n, $3 00. AGC OIRECTORV ISSUE *36 X. Controlled circulation postage p*d OLIVE BRANCH. MISSISSIPPI. POSTMASTER: Send form 3679 address change to CONSTRUCTOR. 1967 E Street. N.W . Washington. 0 C. 20006 (or address of fulfillment house) Contributions should be mailed to CONSTRUC TOR^ 1967 E Street. N W . Washington. O.C. 20006. Unsoldted mateneis must be accomDarned by return postage. Acknowledgement of any decision upon such mateneis shaft be made mthm 60 working days. The magazine weft asmme no reaponsibftity for loas of or damage to sjcn material. Any material accepted ia subiect to revision as necessary m our sole dacreoon to meat the requirements of ttm publication. Uoon oubhcabon and m accordance to pnor agreement, payment may be made at our current rate, witch cowrs the author's and/or contributor's right, bfte and internet m and to the material mailed, in cluding. but not limited to manuscripts and/or material shaft constitute sn express warranty by the contributor that the material 4 m no way an in fringement on tne nghts of others. Material Mbbshed m CONSTRUCTOR remaps the proper ty of the magazine. Nomaterm, nor parts thereof, they be reproduced nor used out of context. wNthout pnor. specific approval of and prooer credit to the magazine. Advertising mateneis should be forwarded to Adverting Department. 1967 E Street, NW,, Washington. 0 C. 2X06. Phom 1202) 3B3-20C FEATURES Business Management: Can a Joint Venture be a Happy Marriage? Construction joint ventures - partnership arrangements bet ween two or more construction companies on a proiect - should be under taken with great care. This feature is based on a recent AGC convention seminar presented by F. Crowder Falls, a managing partner in the firm of Peat. Marwick, Mitchell and Co.. Charlotte, N C. 13 The Climate of Economic Optimism President Ronald W. Reagan has proposed over 300 cuts in the federal budget over the next five years. Many of these budget changes will affect contrac tors. Construction business leaders, however, are optimistic that the stimulation of new business due to Mr. Reagan's economic recovery plan will outweigh the losses. 24 AGC President Tom Dailey Builds Industry Unity agcs president Thomas E. Dailey, chairman of the board, R E. Dailey and Com pany. Detroit, Mich., in an interview with CONSTRUCTOR, explains his views on industry unity and AGC's role In the industry. 30 NEWS Newsletter. 62nd conyention was a memorable one Donovan -Lat free enterprise system work Seminars provide new took, "new dimensions" at convention this year. Congressional pane/ addresses public works issues Highlights of occupational division meeenngs Highlights of Barnhart's message to highway contractors TVA's m*house construction policy 17 Regional News 49 Newsmakers . 52 President's Message Management Notes Labor Notes Legal Matters Political Action Money in the Rocket Classified Advertiser's index Commentary DEPARTMENTS Construction's underground aconomy Manegmg cash resources Social Secunty. A system m trouble Substantialperformance Redrawing Oistna boundaries New/PS regulations threaten status of stockholder loans 4 9 40 . .44 46 47 56 57 5B The scope of work that AGC president Thomas E Dailey's firm, COVER R.E. Daitoy and Company. Detroit. Mich., performs, is pctonaily highlighted on the cover. vbpa (9939 APRIL 1961 Vol. LXIII No. 4 da hat tramy Dne ade yed the rce /ith )up vas our ion ant m- an- :erit's ow tire jc- 3dda ree nt. aliauthe The Management Magazine of the Construction industry PUBLISHER - .per 3eattv. Executive Vice President Asscoated Genera/ Contractors of America ASSOCIATE PUBLISHER Oonaid a Scott Ass t Executive Director, AGC DIRECTOR OF INFORMATION William javne EDITOR Diane 3 Snow ASSOCIATE EDITOR Jerome N Jefferson PUBLICATIONS MANAGER Patricia Whittles MARKETING MANAGER Becky Lower CONTRIBUTING EDITORS AGC Newsletter Building Consrycuon Education Employment & Training international Constr. Heavy industrial Highway Labor Relations Legal legislation Municioal Utilities Safety Ta* 6 Fiscal Services William Henry Camooeil Reed Ernie Jones Chns Monek Frank Schnetler David Johnston John Gentille Dennis Bradshaw Richard O'Brecht Marvin SchecMer James Cromwell Robbt Kimball Sue Loomis Ingrid Voorhees Joseph Ashooh Arthur Schmuhl Martin Morris CONSTRUCTOR (ISSN 0162-61911 is published mommy 0v the ASSOCIATED GENERAL CON* TRACTOR$ of AMERICA. 1967 E Street. N W . Washington, 0 C 20006 Coovnght 1981. Associated General Contractors of America. SUBSCRIPTION RATES U.S and Canada. SiQ X per year. $16.00 - 2 years. $26 00 -- 3 years, foreign $22 00 per year. $44 00 - 2 years. $66 'X - 3 years Smgte coo*es regular issue: U S and Canada $2 00; foretgn. $3.00. AGC DIRECTORY ISSUE $36 00. Controlled circulation postage paid OLIVE Branch. MISSISSIPPI POSTMASTER Send form 3679 address change to CONSTRUCTOR. 1967 E Street. N W.. Washington, D C. 20006 (or address of fulfillment house). Cortnputions should be mailed to CONSTRUC TOR 1967 E Street. N.W.. Washington. 0 C. 20006 Unsolicited materials must be accom panied py return postage Acknowledgement of ary oeoston upon such materials shaM be mede within so working days This magazine wiH assume no responsibility for loss of or damage to sucn material Any material accepted is subyect to reason as necessary m our sole discretion to meet the requirements of this publication Upon Duplication and m accordance to pnor agreement, payment may be made at our current rata, which covers the author s and/or contributor's nght. ti ne and interest <n and to the mattnal mailed, in* duong. t>ut not limited to manuscripts and/or material shall constitute an exoress warranty by the contributor that the material is m no way an in fringement on the rights of others. Material Oubtished m CONSTRUCTOR remains the prooertv of the magazine. No material, nor parts thereof, may be reproduced nor used out of context, without prior, specific epCKoval of and proper credit to the magazine. Advertising materials should be forwarded to Advertising Department. 1967 6 Street. N W., Washington. D C. 20006 Phone (2021 393-2040. FEATURES Business Management: Asset-Based Financing Contrac tors interested m financial metnods should investigate asset-based financing - a cash conserving strategy that has been used for years bv construction contractors with high equipment intensity. This feature presents a detailed discussion of this financing concept. 9 A Contractor and a Sub View Each Other constructor interviewed general contractor Marvin M. Black and suOcontractor Robert W Colgan to compare their views on a variety of topics. 20 Guarantees and Warranties: The Con tractor's Viewpoint The complex web of H guarantees and warranties on a construction protect can be compounded by different exoectations from the owner, architect, general contractor, subcon tractor and supplier. 24 A Developing Market -- Reconstruction/Renovation Reconstruction/renovation work is one segment of the construction industry which could prove to be a valuable market for interested contractors. This feature explains why 28 NEWS Newsletter GSA report brings 8faf abuses into focus AGC provides suggestions for ad ministration s regulatory reform Reward >sn t worth the effort - case history of bidding a federa< tob Chapter publication covers employers nghts under OSha Reagan administration :a>ts for "Reform of ERA Grants Program'" ADAP bills m House and Senate Judge vacates OSHA cita tion for "trifling ipfury" Ival Cianchette elected OCA officer international construction news)5 Regional News 42 Newsmakers 46 DEPARTMENTS President s Message Management Notes Rehabilitation A good market for contractors LaDor Notes Seldom used remedy found for victims of construction site violence Legal Matters Consequential damages Money m tne Pocket Contract Claims assessing the amount Classified Advertiser's index Commentary SBA program to develop competitive minonty businesses - a costly failure 4 7 34 36 38 49 49 50 New York City $ skyline showing renovated Chrysler Building. See "Reconstruction/Renovation.*' pg. 26 for details of the protect. Photo by Balthazar Korato. UNIPHOTO VBPA fflSfi COVER MAY 1981 Vol LXII1 No 5 t )N use of -i dget, sident mstraan-do and is Gated. /ill not . That jssible 's and in our sident s. We ;times .he in- rship, which oroud A/here d to a f liBlBlSL The Management Magazine of the Constmction Industry PUBLISHER Huoe*h Beafy Executive Vice President Aoocatec jenerai Contractors of America ASSCCiATE PUBLISHER Oonaid A Scott Ass i Executive Director AGC DIRECTOR OP INFORMATION Wiliam Jayne EDITOR Diane B Snow ASSOCIATE EDITOR uerome N Jefferson PUBLICATIONS MANAGER Patricia Whittles MARKETING MANAGER Becky Lower CONTRIBUTING EDITORS AGC Newsletter Building Cixsiruction Education Emcoviment & Training international Constr Heavy inaustriai Highway Laocr Relations Legal Legislation Wflliam Henry Campoeii Reed Erme Jones Chris Monet Prank SchneHer David Johnston John GentiUe Denms Bradshaw Richard O'Brecht Marvin Schecmer James Cromwell Roberta Kimball Sue Loomrs Municipal Utilities Safety Tai 6 Ci$cai Services ingnd Voorheos Joseoh Ashooh Arthur Schmuhl Martin Moms CONSTRUCTOR (ISSN 0162-6191) is published monthly dv the ASSOCIATED GENERAL CON TRACTORS of AMERICA, 1967 6 Street. N W.. Washington OC 20006 Copyright 1961. Associated General Contractors of America SU9$CP|PT|0N RATES. U S and Canada. $10 00 ov year $15 00 - 2 years; $25.00 - 3 iers. foreign $22 00 per veer. S4A X - 2 years. #600 - 3 vears Smgie copies regular issue U S and Canada $2 QO. foreign. S3 X AGC DIRECTOR* `SSUE S35.X 2nd Class Postage Paid. Washington. D C 20006 and additional mailing offices. POSTMASTER Send form 3679 address change to CONSTRUCTOR, 1967 E Street. N.W.. Washington D C 200061or address of fulfillment house! Contributions should be marked to CONSTRUC TOR^ 1967 E Street. N.W . Washington, D C. 20006 Unsolicited materials must be accomosrved bv return postage Acknowledgement of v* decision uoon such materials shall be made "thin 60 working days This magazine wifi nume no responsibility for loss of or damage to uoi material Any matenai accepted >s subiect to tension as necessary m our sole discretion to matt the 'eomrements of this publication Upon publication and in accordance to prior agreement, payment me* be made at our current rete. which the author s and/or contributor s nght. tBi and interest m and to the material mailed, in* Ming, put not limited to manuscripts and/or tetenai snail constitute an express warranty bv Be comnoutor that the material is in no wav an in* iHhQsmeni on ^ nghts of others.. Material Mkshed m CONSTRUCTOR remains theproperhof the magazine No material, nor parts thereof, fney be reproduced nor used out of context, "thoui D'<or. soeofic approve of and prooer osdit to the magazme. *dwnwng materials should be forwarded to Department. 1967 E Street, N W . WWungton. 0 C 20X6 Phone 12021 393-2040 FEATURES Business Management: Strategic Planning in the Pro fitable Construction Company The construction company that takes time to study itself and develoo a strategic plan will be better able to face changes in the external environment. 11 Building the Future Through Construction Education Ex- panded managerial training of personnel is one of construction s most press ing needs. This article explains what AGC is dping tp meet that need. 22 AGC Student Chapters Students gam valuable construction knowledge and experience through participation in AGC Student Chapters. Here's how they work and a complete listing of student chapters across the country. 26 Improving Construction Education The objectives and activities of the AGC Construction Education Committee are described in this feature by committee chairman Richard Kerschen. 31 Continuing Construction Education withSTP The Super- vtsory Training Program [STP), in Portland, Oregon hashad an amazing suc cess rate. Find out how their program works. 36 THE COMPLETE AGC DIRECTORY 1981-1982 AGC Executive Committee Members A-1 AGC Board of Directors A-2 AGC Committees A-17 AGC General Contractor Directory: Chapters, Branches by State: Members Alphabetically 57 Index to AGC Chapters 58 Members Alphabetically 59 National Associate Directory Geographic Listing 103 Index to AGC Chapters 104 National Associate Alphabetical Listing NA-54 NEWS Newsletter AGC takes 8(ai prodlems to too egency offtoed. Congress AGC provOes com ments on new procurement plan Watching and waiting tor MB tensions AGC urges change in L ongshora Act Theft and vandalism down m 1990. A GC survey indicates 1961-92 schedule of AGC management conferences Internationa/ construction news 15 Regional News 49 Newsmakers 122 President's Message Management Notes Labor Notes Political Action Money m the Pocket Classified Advertiser s index Commentary DEPARTMENTS The Can-Do Somt and a Return to Reason 2 Comouter theft precautions 5 Federal cnrnnal statutes provide deterrent to violence 39 President ceils for election lew simplifiesvon 41 A Ousmeas approach to the contracting cyde 47 125 125 New daen warn approach needed 126 The variety of skills needed in today s construction company is COVER symbolized by the hands at work on a poster created by Liz Haywood for AGC's Con- struction Education Services. Vbpa S0fi JULY 1981 Vol LXIII No 7 I [ I: I i i* fc i ha i i' ; ii i )loyer in the duct [GNP) il volume of JP has been In addition, 'ublic works lis failure to jch an array need of ma- aried - exa decline in jress has at it Reagan'; : has made ny. As this istry's share he Business oject which mercial convorkmg with iprovements jessful. As a apital expan-, ive. of the GNP. j works con- all American more costj of vigorous The Management Magazine of the Construction Industry PUBLISHER H00er Beatty. Executive Vice President Associated General Contractors of America ASSOCIATE PUBLISHER Donald A Scott Ass i Executive Director. AGC director op information William javne EDITOR Diane B Snow ASSOCIATE EDITOR Jerome N Jefferson PUBLICATIONS MANAGER Patricia Whittles MARKETING MANAGER Becky Lower CONTRIBUTING EDITORS AGC Newsletter Building OorhstrucTion Education Emoioyment b Training international Constr Heavy industrial Highway Laoor Relations Legal Legislation Muniooai Utilities Safety Tu 6 Fiscal Services William Henry Campbell Reed Ernie Jones Chris Monek James Thompson David Johnston John Gentille Oenms Bradshaw Richard O'Brecht Marvin Schechter James Cromwell Roberta Kimball Sue Loomis Ingrid Voorhees Joseon Ashoon Arthur Schmuhl Martin Morns CONSTRUCTOR USSN 0162-6191) is published tenthly b\ the ASSOCIATED GENERAL CON TACTORS of AMERICA. 1967 S Street. N W . Wasnmgto" D.C 20006 Copyright 1961. Aoooatec General Contractors of America SUBSCRIPTION RATES U S end Canada. $10 8 oe' .ear $15 00 - 2 years. $25 00 -3 ers. fore<gn $22 00 per year. $44 00 - 2 years. $668 - 3 years Single copies regular issue L $ and Canada $2 CD. foreign. $3 00. AGC DIRECTORY ISSUE $36 00 2nd Class Postage Paid., Washington. D C 20006 a"d additional mailing offices POSTMASTER Send form 3679 address change to CONSTRUCTOR. 1967 E Street. N W . Wen.rgTor.DC 200061 or address of fulfillment house] Contributions should be mailed to CONSTRUC TOR. 1967 E Street. N.W.. Washington. DC. 2806 Unsolicited metenels must be eccorrv Dined bv -eturn postage Acknowledgement of am decision upon such materials shaH be made "trim QD working days Thts magazine will assume no responsibility for loss of or damage to auch material Any material accepted is subject to *nsion as necessary in our sole discretion to irer the requirements of this publication Upon hOicatton and m accordance to prior agreement, termeni may be made at our current rate, which *rs me author s and/or contributor s right, ti* and interest in end to the materiel maried. intkidmg. but not limited to manuscripts and/or Tetsnei shall constitute an express warranty by he contributor that the material is m no wav an inhngemem on the rights of others. Material Mkshed m CONSTRUCTOR remains the propertof the magazine No material, nor perts thereof. fn>v reproduced nor used out of oontext, whout orior, speofic approval of and proper o**t to the magazine Advertising materials should be forwarded to ^^tising Department. 1967 E Street. N W . *ngton. 0 C. 20006 Phone (202] 383-200 FEATURES The 25th Anniversary of the Interstate The u s interstate System celebrates its 25th anniversary this year, however, it is alreabv show ing signs of old age. AGC's Highway Division Director John Gentille. and Assistant Director John Berard. Dresent a detailed discussion of tne orobiem 14 Interview with FHWA Administrator Barnhart Tne current economic scenario has caused highway contractors to nave many questions for the federal government. To find answers to these Questions. CONSTRUC TOR interviewed the Administrator of the Federal Highway Administration. Ray Barnhart. 22 Indexed Motor Fuel Taxes Grow in Popularity The four cents per gallon federal motor fuel tax generated sufficient revenues in tne 1970s; however, changes in driver habits and a drop in fuel consumption over the oast decade have- cut into these revenues generated for the federal Highway Trust Fund. This feature presents detailed information on an alter native method of generating funds. 30 Recycling Cement and Recycling Asphalt Along with the growing trend toward restoring or reconstructing our nation's highways, there is also an increasing interest in recycling concrete and asphalt from ex isting roadways. Slde-by-sidefeatures examine cost-effective methods for these respective processes. 34 NEWS Newsletter Corps study reteases waterways plans OFCCP opens "7Q` goals and timetables other areas tor new rulemaking Contractor attends White Mouse session on smart business 1980-81 outstanding AGC stuoent chapters Recent court rulings on ore agreements on MSha inspections An Scnmuht named to advisory panet Noise control workshops set Corps phases out dredging fleet 9 Regional News 47 Newsmakers 48 President's Message Management Notes DEPARTMENTS Construction and tne GNP What to do when the banx says no" 4 7 Labor Notes Jurisdictional Disputes A search for new solutions 40 Legal Matters General contractor's nght to terminate subcontract 43 Political Action Return to reason at the Federal Flection Commission 44 Money m the Pocket Changing your tax accounting method may change your casn flow 45 Classified 49 Advertiser s index 49 Commentary A Highway Contractor 's View of Government Regulations 50 This scenic view of interstate 86 near Burlington. N C is a COVER visual prelude to CONSTRUCTOR'S story on the system's 25th anniversary and an in terview with FHWA's Barnhart. Photo Billy E. Barnes/UNIPHOTO AUGUST 1961 Vol. IXIII No 8 Vbpa hat maior itween all <ks to an we find done, the nterprise. iptoval of our conry reform tn be ac- a look at oriate to ;onstucf dollars ss when n wages her con/ lead to ng under iow start .sociated :oliectlve be done ether, coalition ed when mployers human ampts to Jeither of trate that acklog of rikes and t realities ity that a treats in->tractors, a growth SL The Management Magazine of the Constmction Industry PUBLISHER Beany. Executive Vice President . ksaooa'ec General Contractor* of America ASSOCIATE PUBLISHER Donald A Scon Ass t Executive Director. AGC director of information William Jayne EDITOR Diane 9. Snow ASSOCIATE EDITOR Jerome N Jefferson PUBLICATIONS MANAGER Petncaa Whittles PUBLICATIONS ASSISTANT Sharon Nazan MARKETING MANAGER. Becky Lower CONTRIBUTING EDITORS AGC Newsletter Building Carstruciion Education Employment Er T raining international Constr Heavy industrial Highway Labor Relations Legal legislation Municipal Utilities Safety 'n & Fiscal Services William Henry Camedew Reed Ernie Jones Chris Monefc Jim Thompson David Johnston John Gentille Dennis Bredshew Richard O'Brecht Marvin Schechter James Cromwell Roberta Kimball Sue Loomis Ingnd Voorhees Joseph Ashooh Arthur Schmuhl Martin Moms CONSTRUCTOR IISSN0162-6191) published Tonmiv Dv the ASSOCIATED GENERAL CON TRACTORS of AMERICA, 1967 E Street. N.W . ftenmgton. DC. 2000B Copyngfit 19B1, kaooatM General Contractors of America. SUBSCRIPTION RATES. U.S. and Canada. HO00 per year. 915.00 - 2 years. $25.00 - 3 ees. foreign $22.00 per year. $44 00 - 2 years. Q0 - 3 years. Single copies regular <ssua: OS and Canada $2.00; fora^n, $3.00. AGC MECTORY ISSUE $36-00. 3d Class Postage Paid. Washington, D C. 20006 and additional mailing offices. 0STMASTER. Send form 3679 address change t CONSTRUCTOR. 1967 6 Street. N*W . ftanmQion, 0 C. 20006 (or addras of fulfilment Duel Contribution* should be mailed to CONSTRUC* rW. 1967 E Street. N W . Washington, D C BOB Unsoiiotad matenals must be accom- by return postage. Acknowledgement of ** sscsion upon such matenals shall be made *ihr 60 working days. The magazine witt | no responsibility for loss of or damage to mp materiel. Any materiel accepted is subfect to **on as necessary m our sole dtacrebon tp ** ms rQuirsments of this publication. Upon utotion and m accordanoe to prior agreement. | *mmt may be made at our current rate, which Ms the author's and/or contributor's right, b wj interest m and to the materiel mailed, irv Mig. but not limited to manuscripts and/or Mel snail constitute an express warranty by **contributor that the material m no way an trv *79*1*01 on the rights of others. Material 'Med >n CONSTRUCTOR remains the proper- >d the magazine No material, nor pens thereof, ** 0* reproduced nor used out of context. 1 pnor. speofc approval of and proper M to me magazine *Mnismg materials should be forwarded to Department. 1967 E Street. N.W , I Mkngton. D C. 20006. Phone 12021 3B3-2W0 FEATURES Water Resource*: Scarcity Among Plenty Even though an average four billion gallons of precipitation falls on the U.S each day. many regions of the country are experiencing difficult water resource development problems. This article thoroughly examines the problem. 14 Synfuels: Has the Commitment Died? Last year, the construc tion industry was optimistic about the advent of a major new market - syn fuels. However, in the past year, neither the nation nor the industry has felt the impact of any major synfuels project. 21 Analysis of the Economic Recovery Tax Act of 1981 Presi dent Reagan recently signed the Economic Recovery Tax Act of 1961 into law - the single largest tax reduction in U.S. history. This feature examines provi sions of the act which will have a significant impact on the construction in dustry. 28 Deep Draft Ports: America's Ticket to Coal Exports while striving to become less " oil dependent," the U. S. finds itself in the surpnsing and ironic position of trying to fill orders for coal from other nations. This feature presents a detailed discussion of the topic. 30 AGC's Committee Structure: Heart of a Healthy Associa tion AGC's policies are developed by more than 60 national committees comprised of more than 1,400 general contractor members. To more fully ex plain the work of these committees, CONSTRUCTOR presents a complete listing of their functions. 33 NEWS Newsletter .. Pagudtorylawn- rentforcabagmsroundtwo EPAsGonuch Grants program wit stay Amona Chaptar AGC halos step m-housa OOTpnyaa AGC oean shoo conference drama 200 BM Jayna Becomes deputy dimctor of VSemem Veterans Laadersttp Program TRIP uodataa "Highway Funding Methods" BuPec releases annuel report Pint PW pro/ect >15.200 lighthouse with 12.500 overrun Ordar auction nates now Indian Ocaan/Paman Gulf Wort appends for Armncan contraction...............................................................................................................9 Regional News SB Nwinvtin. 70 DEPARTMENTS t' Message ........................................ Patum Paaaon - Ptma Two Management Notes.................................... .......................... Jobsite data processing LeeorNotes .................................... Lama duct NLPB daemons mata organizing atom Money m me Pocket A Pusmass approach to the contracting cycle contract formation Legal Matter* .........................................................Owners ngnt to resand raraction of tmd Poetical Action.......................... Banafia from an atfacdaa eongraaaonal ratationt program Oessfiao ..................................................................................................................................... AOvertaer t Index............................................................................................................................. Commentary.......................................................................... America's Highway Revenue Chsa 4 7 A0 57 56 a* 73 73 74 Tha Glen Canyon Dam. 16% COVER Photo: C Bob Kolbranar/UNIPHOTO SEPTEMBER 1981 Vol. LXIII No. 9 RAM Directors socration t of that 3t durino an's pro?ms that sisted of "Ttandate followed it's pro-. ate over truction oal level ongress vn. The nt parts usly in- tration, f which i's prpon Act. od pro action, id con- by the fice to jse we t been of our most of us pace. from ntract olved , and Tie of ;inate A IIIII illPI'H SD)' fpTrfinnn The Management Magazine of the Consmjcdon Industry PUBLISHER Hubm Beany. Exeojtive Vca Pieaderl Aaocuted General Contractor* o( Ainanca ASSOCIATE PUBLISHER Donald A Scon Aa't Executive Daacior. AGC DIRECTOR OP INFORMATION W*fcem Jayne EDITOR ' Dane B. Snow ASSOOATE EDITOR Jerome N. JeRereon PUBUCATIONS MANAGER Patriae WNtflae PUBLICATIONS ASSISTANT Staron Nazan marketing manager Bacay Lower CONTRIBUTING EDITORS AGC tBn*denar Buddng Canatrucuon Education EnxXoymant 6 Tiamng Humatxmal Conan Heavy Industrie IligBwey Labor Relanons Lagalauon Murxood Utdnas Salety W*am Harry Ema Jonaa Chne Monak Jim Thomeaon Oawd Jomaton Jam Gantde Oenna Braddiaw Ridard O'Bradn Mamn ScnacMar Jamas Cromna* Rebate KimOdi Sue Looms Ingnd Voortaw Joaepn Aetoori Arthur SdwmjN Tzx 6 Facd Senecas CONSTRUCTOR IISSN 0182-81911 a eubkshad monnxy by da ASSOCIATED GENERAL CON TRACTORS ol AMERICA. 1967 E Stiaat. N.W.. Wsrangton. 0 C 20008. CCopyngtn 1981. Aaaooeied Ganard Contractors ol America SUBSCRIPTION RATES U.S. and Canada. $10 00 oar year. *15.00 - 2 years: 12.00 - 3 an. toragn *22 00 par year. *44.00 - 2 yin. MB 00 - 3 years Sngle cases regular aaue: US and Canada *2.00: loragn. 13.00. AGC WRECTORY ISSUE *2.00. 2nd das Poetege Pdd. Waahmgton. DC. 20006 and additional mailing ollicat. POSTMASTER Send form 3679 edOaaa change B CONSTRUCTOR. 1967 E Street. NW, Waarsngton. O.C 20006 lor a*-*eei ol tiMmant house] Cantnbuuons dsould be madad to CONSTRUC TOR. 1967 E Stiaat. N.W.. Wahaygaon. D.C. 20006 UnaoBcrted manna** mm be accomoaraed by rausm paataga. Atknrededganant o# aiy daodon upon auch nawndi dial be made dsn 80 snorting days.. Thd magaana aai aaaurne no ranonabBty lor Baa o* or damage to auch naand. Any material adapted a adyart to imsion m nacanary ei our aota daoeben to mati the raoueamants oI did publication. Upon publication and ei accordance to prior agreement, payment may be made at our ament rate. edadi mart da author's and/or oontrButor't ri0n, a- ie and ewaraal m and to die matand mated. rv dudng. but not trntad to mamaenpa and/or matand diai conaatuta an araM amity by me contrdiutor that tha rnaiand s ei no way 1 avtmgaanani on da n^its ot othan. Maaand pubtahad ei CONSTRUCTOR ram da proper ty or da magazine No matenai. nor para darad. ay be reproduced nor uaad out ol contdrt. rthout pnor. specific pro*a< ol and propa oadn a da maganra. Adtarsang meianda mould be torwarded a Artnanang Department. 1967 E Seaa. NW. Wedaigton. O.C. 20006 Phone 12021 3B9-2M0. FEATURES Construction Equipment of the Future Construction equip ment manufacturers across the country are currently studying how contrac tors operate and service their equipment to determine desired improvements in future technology. This feature presents a detailed discussion of the subiect. 14 Equipment Acquisition With the current high interest rates, tight money and unpredictable construction markets, contractors are finding equip ment acquisition to be a challenging and complex task according to CON STRUCTOR interviews with contractors from different regions ot the country. 20 Now Products A showcase of new construction equipment designed to increase on-the-job productivity and efficiency. 24 A Massive Equipment Maintenance Program at the Tennessee-Tombigbee Waterway Project Everyday, six days a week crews and equipment are at work on this huge protect. Here's how the equipment is kept rolling. 32 Oil Analysis Program Doubles Equipment Ufa, Decreases Maintenance Costs A good oil analysis program can help prevent costly equipment downtime and repairs because it gives master mechanics in sight into the internal operations of construction equipment. This cost effec tive. preventive maintenance tool is examined. 36 NEWS Nawstottar AGC okm poettnm approach on tSffiaAr amm AGC m* not Adporr CM association Admmatratna changes of Ooms Bacon 1962 Officers nominated Other Hrghkghts of Midyear Board Meeting AGC Stm bnat at faring had cam AGC. a loader *i attar national construction AGC acquaints federal otfaats writs corripvvtsv* construction atdusuy 9 fteponrffews 52 Naarsmskan . 56 Praadit'* Message Miegemeru Notes Labor Notes . LegB Matters Moray ei the Pocket Pofcucd Action Oamfad Ad alga l Index Commentary . DEPARTMENTS .................... Praarton Reagan's Eoonomc Program .. Em of "Oonom kna"a fading .................... Tha ISBDERtSA Amendments-Ona Yaar lam BthfAmancanAa. Foreign matanob skated Do four fatanoaf reports coat you money? ............................ "No causa for alarm - yet" mnousa construction. An snmaf loam to natural habaat 4 7* 40 41 44 46 57 57 SB Tho dozer rarely gets a breather on a protect in tha oil boom town of Branham. Texas. Photo: Tom CaBins, McNee Photo Commurecations/UNIPHOTO COVER OCTOBER 1961 Vd. LXIII No. 10 | i I i * I * r t CONSTRUCTOR AGC'l Mnflmnl Mg2in for the Construction Industry Q Nowtnbor 1M1 1 \20 28 53 features Construction and the Era of Positive Regulatory Reform The construction industry - the nation's largest employer - has been inun dated with excessive governmental regulations for many years. To help ease the situation, the Reagan Administration is making .positive regulatory reform efforts. This feature thoroughly examines the subiect Houston Construction Boom Houston, Texas - the site of AGC's 63rd Annual Convennon/CONSTRUCTOR Exposition, is currently experiencing a tremendous surge m construetion activity in spite of soaring interest rates and a national recession This feature examines the phenomenon The 1982 AGC CONSTRUCTOR Exposition Contractors can see a wide array of products and services for the construc tion industry at the annual CONSTRUCTOR Exposition in Houston. Texas Exhibit hours, exhibitor listings and products are included for easy reference. The New Tax Law and Cost Recovery for Construction Contractors Construction contractors are going to be affected by provisions m the Economic Recovery Tax Act of 1981 relating to capital cost recovery and leasing This feature examines the provisions. University Construction Programs at a Turning Point Individual construction firms can protect their source of future management talent by supporting university construction programs We Stand at a Crossroads AGC President Thomas E Dailey's recent address to the Building Trades Department. AFL-CIO. is printed in its entirety on these pages. 20 28 37 ad S3 Of News Newsline...........Redirect OFCCP, AGC asks agency and Congress Presi- dent Dailey to Building Trades: Times demand cooperation New Jersey group starts public awareness drive on value of contract construc 11 tion Charles Gargano named for UMTA position. Supreme Court lakes local 542 case, AGC filed amicus brief IECIC conference provides forum for ideas on strengthening U. S. exports AGC testifies for Senate resolu tion on contract method. Regional Action Newsmakers 71 Departments Perspective........ President's Message Future Collective Bargaining Management Resources Build your business's image Labor Notes............. ERISA remains m the spotlight Legal Matters. , Arbitration against owner litigation against architect Political Action Continued AGC PAC success Editorials............................ . The decay that threatens economic growth 7 9 17 64 65 68 74 Three government officials active in positive regulatory reform -- EPA Ad ministrator Anne M Gorsuch, Interior Secretary James G. Watt and Labor Secretary Raymond J. Donovan - are portrayed in a painting by Washington, D. C. artist Sharon Rogers. Vof LXIII - - _____________________________________________________ No. 11 !: CONSTRUCTOR AriC'i Minqmnl ztor the Conuruction Industry December 1W1 I Pastures How to Oevelop An Effective Marketing Plan For Your Construction Company Step by step instructions for developing an effective marketing plan for con struction companies. Sample marketing, action and profit plans are includ ed. 18 The Company Brochure: A Key Marketing Tool An essential element in every general contractor's marketing plan should be a brochure describing the company. It's the first impression a customer gets of the firm and a major element of any marketing program. TRIP -- The Highway Marketers The marketing strategy of The Road Information Program [TRIP), a highway research agency, strives to produce results that the average motorist can understand. CONSTRUCTOR interviews the future chairman of TRIP'S board of directors. A Challenge to Free Enterprise The AGC Ethics Committee recently decided that the association should en courage interest among its members on the subject of ethics as a basis of personal and economic freedom. Committee chairman William Kuhne recommended this article by William E. Simon, for CONSTRUCTOR publication. AGC Publications Library A comprehensive presentation of the tremendous resources contained m AGC's numerous publications. This collection is the product of AGC members working together to improve the industry. 25 29 32 ** AGC Staff Responsibilities The AGC National Staff consists of more than 100 people actively involved in all aspects of the construction industry. Their work complements the ac- tivities and services provided by 113 AGC chapters nationwide 68 iw---n----w---- Newsline........... Ninth Circuit's ruling on violence will stand. Re-establish 13intent of Hobbs Act, AGC asks Congress OFPP issues draft of proposal for uniform procurement system... Mobilizing defense construction -- what mustbedone to get ready... Completed contract method still under study in Administration, Congress . Fifth Circuit upholds industry practice in OSHA citation case .. Update on appropriations for U. S. embassy in Saudi Arabia. Regional Action...........77 Newsmakers........... 80 Departments Perspective.............................................................................."Meat and potatoes" 7 President's Message..................................................................... E Plunbus Unum 9 Management Resources................................ OSHA improvements considered 71 Focus on ERISA................................................................. AGC testifies on ERISA 72 Legal Matters ........................ Right to contractor's claim against architect 73 Occupational Divisions Outlook.............................. OFPP and real competition 74 Labor Notes......................................... 1962 -- Construction industry bargaining at the crossroads 75 Political Action....................................................................... Changes in the wind 76 Editorials........................................................................................................ On Unity 82 Cover Kay publications representing categories in the AGC Publications Library. Background photo Steven Rosendahl/UNIPHOTO. Inset photos by F. Harlan Hambright. ____ Voi. LXIll, No. 12 I i