Document RpYkxq11XgzoGe0q9Gky1EgQV

onstructor THE MANAGEMENT MAGAZINE JANUARY 1975 VOLUME LVM NUMBER 1 and dest -ncy, rvice on is latch ' is at -n for one. dels; liable ginia. ia 23605 COITOR'AL PUBLISHING. ADVERTISING OFFICES: >957 E Si NW Washington. 0 C 20006 Area Cooe 202-393-2040 PUBLISHER: James M Sprouse DIRECTOR OF PUBLICATIONS: Frank Scnneller EDITOR: Ricnara Bmg ART OlRECTOR: Joanna Hams SPECIAL SECTIONS EDITOR. Vaughn Smart! PRODUCTION MANAGER: Ei>zaoth Dan.eii CONTRIBUTING EDITOR Elena Cunmngnam BUSINESS MANAGER: Edward S Boss CIRCULATION MANAGER: Delores Carbaugn ADVERTISING PROMOTION MANAGER: Donna - Bane* ADVERTISING OFFICES Jamet M. Angell. Jr. Suite 332 200 Park Avenue New * or * New York 1001? Pnone 212-682-5775 Thomas G Cutter 165 North Wabash Chicago mmois 60601 Phone 312-726*244? Cart Grttham Suite 204 ?i to Oakland y St LOUIS Missouri 63117 phone 314-647.7667 Bruce Bigler 6478 Wii$hire Boulevard 1 los Angeies California 90036 Pnone 213-936-0ill WiNam C. CoughMn 22 Battery Street Sar Francisco. California 94ill Pnone' 415-398-4444 -~'K>- s-'-"C= s a national monim, magaz'ne DuDiisnec : Assac atec General Contractors o* America ; ass ;cs:age oa>o at Washington D C ana aaa>t ' *" ce S'aiements anc oo>nions e*or*sseo in eO" a s o' 3"'Z'es a* tne eo-to's anc conir.outors are not i. :"i05e o' :ne AGC anc tr*e suDiicaiior- ot ao- *-:sng sees ^o: impiv endorsement of DfOCuCiS or S maoe concerning mam Copv.gm 1975 o, Asoc>ai*C Ganera' Contactors of **>*':* ;.:sc-'o:.on rates u S ane Canaoa S? 50 oar ^tar - * DC-2 vaarj $i8 00-3 .ears 'O'e-gn SiOSG&er vaar ~ *;-* cooies 'ejui#' -ssue u S ana Canaoa 75e foreign $ 0C *GC Director* >sue $25 00 A:e't>sng coni-acts rsa*tion oraers ano cop* snouia Cf 'O'*a'oec io Aoertismg Duoa'tmeni 1957 Street s A Wasr igror r, ' 20006 Pn0ne 202-393-20*0 COVER THE BOSPORUS BRIDGE spans 4900 feet to fink two continents The triumph of con necting Europe with Asia is made an the more meaningful Pv me many construction inno vations which set this one apart from the world s family of sin gle span suspension bridges Picture Credits pg 6 B Paul pg 12 too Ergun Cagatay. pg 40 Gordon H Schenc* MATERIAL SHORTAGES THE CASE AGAINST GOVERNMENT IN TERFERENCE Uncle Sam's knack for writing unwise <if not aosurdi regulations has contnputed greatly to many material shortages suf fered by general contractors BRIDGE ACROSS THE BOSPORUS Since the nme of K,ng Darius. 512 BC there s Been a dream to link Asia with Europe with a bridge across the Bospdrus. Now the dream is a reality m the form of one of the world s longest single span suspension bridges 8 10 AGC RATES CONGRESS Here s the 'report card of tne 93ro Con gress How did your Senators and Representatives vote on the issues of vital concern to the construction industry? s 2237 APPLYING ANTITRUST LAWS TO LABOR UNIONS Senator Strom Thurmond <R-S C I has authored a bill which wouiO have many ramifications across the entire spectrum of business unionized labor relations In this exclusive interview he provides an swers to nine crucial questions concerning tne provisions of his oil! and his reasons for proposing it. 17 25 A SCIENTIFIC APPROACH TO BIDDING RANGE ESTIMATING Making the best guess possible is the difference between winning a bid or being an aiso-ran between making a profit or losing vour shirt Through the magic of computer analysis there is a wav to cope with the uncertainties of bidding 27 AN INVERSE OF MURPHY S LAW Only the doomsayers could be unhappy with the renovation of Idaho Falls' center city streets and the efforts put forth by the Kennaday Paving Co Credit an outstanding community relations program as part of a job well done in the face of many potential problems 3^ DEPARTMENTS LABOR NOTES 6 NEWS NOTES 41 CONSTRUCTOR INDEX 49 NEW PROOuCTS IN PRINT 62 AD INDEX 62 55 COtTORlAL publishing, advertising offices ij- t Si NW Wasrungro^ DC 20006 *ea Coo* 202 393-20*0 PUBLISHER .a^es M Sprouse OtAICTOR OF PUBLICATIONS: F'ann Sc^neiier {OiTOR R-c^a'S Big 4*T DIRECTOR .oanna Special SECTIONS EDITOR- vaug^n Smant PRODUCTION MANAGER. Emaoein Dan<e-' CONTRIBUTING EDITOR Eiena Cunn.ngrtam BUSINESS MANAGER: EswarQ 3 Boss CIRCULATION MANAGER. Oe'ores Caroaugn 40VERTISING PROMOTION MANAGER: 1 Ba->e. ADVERTISING OFFICES J*m M AngU. Jr. Suite 332. 200 Par* Avenue N*. 'O'* Ne*/Tor* 10017 Pnone 212-682*5775 G Cutler ' 85 NoMn Waoasn >-;agc iii.no* 6060i Phone 312-726-2442 Carl GnsRam Suite 20*. 71 io Oaniano i- .Ovs M.ssouf. 63H7 Phone 314-647-7667 rue* Bigler s*7g w<i$nire Boulevard -h A-'ge.es California 90036 Phone. 213-938-01 n *am C Coughlin 22 Battery Street ->= ;*a"c see Caiiiorma 94iii Phone: 415-398-4444 N: s i -lafon*! monthly magaiih* puOfuneO * 4oc l ee 3er>e'|i Contractors o* Amine* Sdcorid * v*; 2*,c a: Washington DC arid additional ol- a~j oon.ons no'ttHO ir a0ilonis Of - 'i es i^'i ano contfioutoi* a?a hot necassaniv *' c ag; a^c i>* ouOi<catton of aovtnismg does rco^r-'*-: of products or staiamants maaa ' .a*" '915 d Atsociatao Gtnara* Contractors of s'on >ates uS ano Canada S7 50 De> Year * X < .*! S'8 00-3 years foreign $10 50 per year - .csfs -egwia' <stuc u S and Canada 75c foreign X *CC Duectory .*u* S25 OO ' *> eom'icts tnsenion o'Oa'i ano copv should be a-s*e io Aa*nismg Daoartment ' 1957 l Street ' ' "*'--910- DC 20006 Pho-w 202 393 20*0 COVER: HAWAII --THE IS LAND STATE -- scene of the 56th Annual AGC convention and the inspiration for three feature articles in this issue We trace the development of the state, highlight . some of the present building and analyze tne current construction markets Picture Credits Pages 26-33 Bureau of Reclamation u S Deot of Interior page 34 B Paul HAWAIIAN CONSTRUCTION THE PRESENT PERSPECTIVE Con- struction >s the largest industry in the state and it is as varied as the population 22 BUILDING MR HOOVER'S DAM Six construction firms took on the challenge of building the dam that many people said couldn t or shouldn't be built CONSTRUCTION MANAGEMENT IN HIGH-RISE BUILDING TECHNIQUES By fulfilling the owner's needs. Construction Management benefits the contractor as well TINKERING WITH THE TIMETABLE Overlapping several maior construction tasks in the building of the Los Angeles Veterans hospital is saving time and money 26 34 40 HAWAIIAN CONSTRUCTION THE EARLY YEARS The modern thnving Island State was Porn in a series of volcanic eruptions and the erection of thatched huts HAWAIIAN CONSTRUCTION THE ECONOMIC GROWTH The construction industry in the Aloha State hit the $1 billion mark in 1974 CURBING INFLATION THROUGH ANTITRUST LEGISLATION A Federal Reserve Governor surveys the economy and recommends applying antitrust laws to union labor THE COST-SAVING CHALLENGE OF VALUE ENGINEERING The mam obiective of the Corps of Engineers VE program is to increase the worth of each dollar spent 43 45 48 53 DEPARTMENTS PRESIDENT'S MESSAGE LABOR NOTES 10 NEWS NOTES 58 7 NEW PRODUCTS IN PRINT 79 AD mDEX 80 71 constructor THE MANAGEMENT MAGAZINE MARCH 1975 VOLUME LVII NUMBER 3 t>70l*L PUBLISHING. ADVERTISING OFFICES: I $! NW Washington. D C 20006 Cost 202-393-20*0 PUBLISHER: Jmes M Sprou$ OtttCTOK OF RUBLICATIONS: Frank Schneuer (TOR. Rcwfl B*g IRT OMCCTOU: Joanna warns USOClATf EDITOR: Enc l Bonon MKiAl SECTIONS EOlTOR: Vaugnn Smartt JJO EDITOR. Arthur wmt2e OOvCNON MANAGER: Elizabeth Damaii CONTRIBUTING EDITOR Elen* Cunningham BUSINESS MANAGER: Eowaro G Boss OMCUlATiON MANAGER. Deicxes Carbaugn ADVERTISING PROMOTION MANAGER: rru . Ba.iey you')' also a -ss<goillaoif Clamcrane ague-, nglin; 1 per amoli- you' adrt plan: T ADVERTISING OFFICES M Angal. Jr. Suite 332. 200 Park Avenue '*'** Nar Torn 1001 7 Phone 212-682-5775 "MaC Cutter i85 North Waoasn mmois 6060t Phone. 312-726-2442 ^ CrAM Suita 20< 7ti0OaKiano -*s M.ssoun 63n 7 Phone 374.647-7667 *** tqter S4 ?8 Wiisnire Boulevard California 90036 Phono: 213-936-017 1 C CeugNm 22 Battery Street ^<iscc Cantomia 94t u Phone 415-398-4444 a ; - .. - o' s i -',o*a mommy magazma puDinnao Gen*-ai Coniractor* oi 4m*fie* x '5P!*ga sa>: & wsfungjon O C ano aooir '* anc opinions eio'$s*0 m #d<- % 3 * t f* 6' *OiiO'S anfl contnouiors ar not . * ''o** o' :nt *GC nc t*a puDncat'O" o aO- , ^ 'mP`' tnoorsamani ot prooucu or ** v cnc#ri'ng then- ^ e> ***Pc.*c Ganarai Contractors oi iTi' ^ u s " Canaoa V 50 p#f year. J**M ,,,oca raars 'ora,gn. jio 50 per r*ar l * - >'**l"*,' 'MIMv* *u2SS0Cana Canaca 7S oa*gn. 70"tfaCll _______ COVER JOHN H. MATICH. AGCs new President is a hard working, energetic man who has spent hts life >n the construction busi ness in this issue, we present a personality sketch and career recap of the new President The cover photo is by George Mikitzki Picture Credits Pgs 30-32. Richard Bing pg 34 photo courtesy oi Bureau oi Public Roads Deot of Commerce METRO WASHINGTON'S BEDEVILED SUBWAY Phase I of the massive four-phase subway proieci in Washington. D C., is scheduled for completion in August --4 6 miles of track and si* stations will open three years behind schedule Since ground was first broken, the project has been plagued with big problems 8 ECONOMIC POLICY OPTIONS FOR 1975 Selecting the proper mi* of government economic policy for the new year is unusually difficult The effort last year was to stem inflation, now we find ourselves in the worst recession since World War II An expert says that most of the "new economics" reflected in government policy so far is out of tune with the times What s more, the much ballyhooed tax cut may be a cure that s worse than the disease ^4 THE GREAT TRANSCONTINENTAL RAILROAD RACE When the golden spike was driven home at Promontory Point, contractors had done what no political force had ever accomplished -- bound the nation to gether Racing from Omaha and Sacramento, they beat the clock by five years despite the snows and the Indians! 1g THE NEW AGC OFFICERS President John N Matich. Senior Vice President Ben M Hogan. Vice President S Peter Volpe and Treasurer Carl Erickson are the new team of executive officers for AGC HOW MANY BRICKS DOES A BRICKLAYER LAY? The question first arose when man took brick and mortar in hand Now. thanks to a $210,000 research project, there is an answer 30 34 PAPERWORK MANAGEMENT Perhaps it s because of the way many construction firms have evolved over the years, but the sad truth is that the record keeping done by many firms is much less than ade quate. Here s a presentation on procedures and forms which, have been specifically designed to help construction companies do better 37 -S scracwrj ;r,e Oesijn, Constructors'-soicjfx irOunfl .n ano M- I 2 lllmo-<; . thE MANAGEMENT MAGAZINE APRIL 1975 VVOOLLUUMMEE LLVVIIII NNUUMMBBEERR 44 RBCD ndard Can* PUBLISHING. ADVERTISING OFFICES p ! S' s W rtasr'mgto''' D C 20006 I x; 393-2040 I .a^es W Sprouse of PUBLICATIONS: Frank Scnnelter 0nqa ft<*iro 8'*? IMCTOA: Joanna Harr'S DOiTl CDITOR Eric L Bolton J0 10IT0A- A'inu' Hmtze *PVUi SCTiONS EDITOR: vaugnn Smartt NOOuCTlON MANAGER. Ei.zaoeth Oanieii afTUSUTlNG EDITOR Eiana Cunnmgnam IMS MANAGER oar<JG Boss 3CLMTI0N MANAGER: Deiores Cafoaugh ^VribuG PROMOTION MANAGER: *' . 6a ** JO^Tlfcnc OFFICES Aagtl. jr Suite 332 200 Park Avenue tot. 10017 Pnone 212-682-5775 'ka( Cwoer '65 North Wabasn "LJ* -oi 60601 Phone 312-726-2442 Swit 20* 7it0Oaklano - *y V ssoun 63i 17 Pnone 314.647-7667 GM* 5476 *srre Bou'evatO 'California 90036 Pnone 213-938-0111 C- CaufMn 2? Battery Street `nc/scc California 94111 Phone 415-398-4444 . ^OsS'^.C'O0 * national monthly f "a;*.- >* 5.01'Shea o tn# Assocutec 1. *A" IaA i Cori-aciors o* America Seconc :cs:age pic at Watnington _ D L. aec or<ice Statements anc " **m**c - .:o'.4is o* anicies o* tn* acton r -.' nc1. necessanw mose o' 'he AGC :f :* 5` aot'vs'ng soes not tm' enoorse- ' . -e. \ ? mast concerning them * ' * : Aiiocaiec Gep"<*` CowaCWS o' * i'm - s anc Canaoa $7 SO pe* vf *' l :c 3 *n 'ora-gr S'0 50 per yea' *'*' ;.. 0 $ and Canaoa 75* toreiQn >*c . im S25 00 ^ j .nt*.|,0f. ygarj ano copy snp s.ng Departman; 195? E Strf ^^ ww Pnone 202.393-50*0 COVER: THE WORLD OF MARINE construction is the theme of two articles this issue The diver is wet welding an oil rig pipeline 168 feet deep in the Gulf of Mexico. Wet welding and the companion process of saturation diving were perfected by the Chicago Bridge & Iron Co (AGC) Cover photo is courtesy of Parker-Hanmfan. Ptcturp Credits Raymond International. Inc. Pg. 10. American Gas Assn.. Pg. 12. Petroleum Today. Pg IS. World Parts. Pg 16. B Paul. Pg. 23 I1 LNG TERMINAL IMPORTING LAKES OF ENERGY Down on the shore of the Chesapeake Bay a toint venture of three AGC contractors is building one of the world s largest import facilities for liquified nat ural gas. 10 GIVING BERTH TO SUPERTANKERS The huge supertankers cruising the sealanes of the world have no American port to call 'home'' Presi dent Ford recently signed legislation which could provide docking facili ties for the ocean s orphans However, a vast number of hurdles must be cleared before the superport construction market meets reality. 14 A CASE OF PREMEDIATED SAFETY Among the souvenirs that Nello L. Teer. Jr took home from the AGC Honolulu convention was his third H.B Alexander Award Mr Teer would be the first to give credit to Gene Warren for the firm's outstanding safety program 20 YOUR BOARD --WHO SHALL SERVE? The number one occupation of a director of many family-held companies is ' mother " Knowing who should not be on your board is as important as knowing who should be 22 NEW MEXICO CONTRACTORS WIN FRIENDS (SOME WITH FOUR FEETI After a small zoo burned to the ground in Albuquerque, the local newspaper launched a fund drive to rebuild it Finances fell short and that s when the local construction industry came to the rescue for an old-fashioned barn-raising. PAPERWORK MANAGEMENT II Properly-kept records are only im portant when you need them--then you really need them. Here s some forms and procedures designed to help contractors do a better job of record keeping. 25 27 DEPARTMENTS PRESIDENT S MESSAGE LABOR NOTES 6 NEWS NOTES 32 S AD INDEX 38 NEW PRODUCTS IN PRINT S4 46 i constructor THE MANAGEMENT MAGAZINE MAY 1975 VOLUME LVII NUMBER 5 t~j.iL PVIUSHING. ADVERTISING OFFICES: . > M Wasruogion. 0 C 20006 252 393-20*0 .^<<1 .amei M SOrOu& Of FU8UCATIONS: Prank Scnneiier +TM G<njrc Bing rNttCTOS Joanna mams dBQATf {DlTOF: E'iC L Bonon MM tO'TOF: Armur H.ntze ftCH MOTIONS EOITOR. Vaughn Smart! BOuCTiON MANAGER: Ei>zat>eth Oanieii SntlUTlNG EDITOR E<tna Cunningham AVCSS MANAGER: Eowara G BOSS aaiunON MANAGER: Detores Caroaugh I avator y:. Jt it s a's: ' any ass ; :re ava>t&: novel, cia* vith a ctv* ats. magv tor. eng' *; r high f* ng, derr; CfBTitING PROMOTION MANAGER: "a . &<> *.">!*nSiuc OFFICES m * Angtl, Jr Suit* 332 200 Park Avenue * J. he Torn tool 7 Phone 212*662-5775 ^*6 Cutler 'fls Norm Waoash i'^ots 6060' Phone 312-726*2442 > Suite 204 7iio Oak land A.J M-ssoufi 63ii7 Phone 314-647*7667 547$ Wii$hir* Boulevard "W Caiiiorma 90036 Phone 213*938*0111 C CtegNin 22 Battery Street ix-sco Cantorma 94iu Phone. 415-398*4444 ob at ye. en moof' ? new pHm ews. Vi ?>t **^0, -vSS*Bv;-0B $ a national montniy 4 j \ '-JQit ne o.onshao ov ma Associated | ; je'e-a Co'-ttaciors o Amend Second * *4i sov.age dic at Washington DC *25'' *"0 aocitiohai on>ce Statamants ane ' i* eoiiotian or articles v ma editors :-!o>r >f not nacesseniy moae o me AGC. ..:-cai.on o' to*'!-sing does not imply endorse- or stattmants maoe concerning mem ' * 5 i t' Assoc-ateo Ganarai Contractors o ']V 3* -JIEi U S and Canada $7 50 ' * ` *'8 00-3 years foreign $l0 50 c*f , r ssue u S ana Canada 75* fo * >*Cl0r, tiui $25 00 B ** int#rt>on Orfr'S anC COpy 1 ' r*?6 *y#f!,s'"G Deoaftman? i57 E $ _ "``Von DC 23006 Bno* 202-393-304C LlSil slix. fiffi bfcikilr I COVIN: IN CINDERELLA FASHION. New York's Welfare Island has become Roosevelt Island The magic wand is in the hands of seven AGC firms engaged in a wondrous urban renewal protect The S375 million question is whether 18.000 people will want to live happily ever after on a two-mile plot in the East River' Our cover photo was taken from a helicopter by John Dubas of Dravo Corp. Picture Credits ps 16 B Paul, pg 19. ken Jones. Lai Vegas Sun. A NEW DEAL FOR ROOSEVELT ISLAND Off the shore of Manhattan, contractors are bringing the 21st century city to life on Roosevelt Island It is a mystical piace where visitors and residents arrive by air and garbage flows under ground Rock is the construction problem, but political/financial problems run much deeper 10 CONTRACTORS COME TO CAPITOL HILL "When doctors make mistakes, they bury them, when Congressmen make mistakes, they enact them " Finding more truth than humor in this Will Roger s observa tion. contractors are flocking to Capitdl Hill to talk things over with their Senators and Congressmen 15 CHOOSING YOUR ADVISORS Knowing whom to listen to is important 16 for any businessman, especially one in charge of a family-held company Here's practical advice on selecting the people you should seek. NEW LIFE FOR OLD ASPHALT In an age when ecology and economy 1 8 are often mutually exclusive, a new system of reprocessing old paving materials saves money as well. N Y NOISE ARGUMENTS FALL ON DEAF EARS Noise has been added to the ever-growing list of pollutants injurious to the nation s health. In New York, the state environmental protection agency has come up with a cure which could kill the construction industry patient 22 HEY LADY...YOU COULD GET HURT AROUND HERE! Little boys learn from female school teachers, but can grown construction workers be taught safety by a lady? Judith Case thinks so and she's on the job sites proving her point. 26 PAPERWORK MANAGEMENT PART III This is the concluding install- 28 ment in a series of forms and procedures specifically designed to help construction firms do a better job of record keeping DEPARTMENTS PRESIDENT'S MESSAGE LABOR NOTES 6 NEWS NOTES 40 3 AD INDEX 44 NEW PRODUCTS IN PRINT St 47 TQdw yd. ` s gof r roughesf c of oil. mein: 5 Profits SouT-i 9or o sook 'persrors. onstructor THE MANAGEMENT MAGAZINE JUNE 1975 VOLUME LVII NUMBER 6 (-*. WMW'fO- ADVERTISING OFPICES * * **sn,n9ion 0 C 20006 ,, .;; J93 ?040 i .v*i M Spfou$e I Of PUlllCATlONS. cran> Schneiier svs B-g MCT0> J*TMa Harris jflCOltOA r,c l Sonon 9 Artftgr *imi;e * SCIONS ID1TOM: vaugnn Smani i MANAGER. Eii2aDth Oanieii ttluTlliC EOlTOn Eiena Cunningham l IMAGER Eowara G Boss MANAGER. Dewes Ca^oaugh BNC PROMOTION MANAGER: SBC OFFICES * a Suite 332 200 Par* Avenue n <* ton 10017 Phone 212-682-5775 4 Ga* i|5 Norm waoasn *nos60i Phone 312-726-2*42 204 TuoOaMano - Nswxr. 6311? Pnone 314-647-7667 " i*'# iNiisrure Bouievara Ui-iwn!* 90036 Phone 213-93B-0U1 * * 22 Battery Street Cantorma 94ii Pnone 415-398-4444 n *g you- *r- :chS*vC'OB national mommy I (f # `K*: 'n*t S5uDDii'i4hna*oa o. iha asaociataa I i Con'iaclo'i 01 ama"Ca Socorto * nc ;oi:age aoo.t.onj, ; at 0,.)C( WMh.fygton Statamant* 0onCe wmtae - ao.tot.au 6. att.ctas o trta ao.tots 7 *'* "01 taceiiat... mo# ot ttta AGC -a o- a aowati.s-ng ooat-noi .moty aftootaa- - 1 y t.a'amantj maoa cor.catn.tyg mam . 5> **t>c.atao Gartata. Conttactora o' . ^'7 ` 5 tf< hinaoa 17 50' oar yaar ,, r^.jyaa-j tota.g- $i05Gpo>oar . a- . *'*' ll"* ^ s ana Canaoa 75a tora.gn ^ . r-af'. IM 125 og K1 '-A-'t'On oroa.s ano COOy anouio w ` `^y'S.ng Oaoartmant 157 E Str#at ______ *' ' ?OOM B'0na 202 3S3-2M0 COVER CONSTRUCTION OVERSEAS is attracting an ever-growing number of American contrac tors. In this issue, we provide some insights on financing and insuring foreign protects. Also, we present two views on the British construction industry and our cover story tells the tale of the new Elbe Tunnel Our cover photo is courtesy of Philipp Holtzmann Co Picture Credit pg 20 B Peui i NEW ELBE TUNNEL TO UNCORK HAMBURG TRAFFIC The Elbe River may be a bearer of cargo from all over the world, but the tunnel under it has been a barrier as far as Hamburg's motorists are concerned A BANK AS BIG AS THE WORLD Many of the overseas projects with which U S contractors are involved are financed, at least in part, by the Eximbank. Here's an inside look at the services the Bank provides A DAVIS-BACON PRIMER During the 1930s. construction workers were among the lowest-paid laborers; nowadays. iust the opposite is true AGC believes the law has outlived its purpose and is seeking re peal of Davis-Bacon Here's a nuts and bolts'' background article MINIMIZING RISK IN THIRD WORLD COUNTRIES One of the big boom areas in the foreign construction market is found in the so-called "Third World" nations While these developing nations offer much in the way of opportunities for American contractors, there can be sub stantial risks involved Helping to relieve some of the worry is the Overseas Private Investment Corporation YOUR BLUEPRINT FOR THE FUTURE An organization chart of your company should be a clear-cut plan to keep your company going long after you re gone BRITISH CONSTRUCTION: THE DARK CLOUD There's a popular notion that what happens in England often foreshadows events in America If that's true, we re in for a lot of trouble. BRITISH CONSTRUCTION THE SILVER LINING The Executive Direc tor of the British equivalent of AGC says that for his contractors it is not the best of times, but it isn t the worst either. 8 10 15 17 20 22 26 DEPARTMENTS PRESIDENTS MESSAGE LABOR NOTES 7 NEWS NOTES 35 AO INOEX 39 NEW PROOUCTS 41 IN PRINT 47 constructor THE MANAGEMENT MAGAZINE JULY 1975 VOLUME LVII NUMBER 7 jr |Ct ' rtee' ' uge ne r> r' *WHJSHI*S. ADVERTISING OFFICES: h a Washington. D C 20006 ,, a393-20*0 ^,0 .vws M Sprouse OF asjSUCATIONS: Frank Scnneiier rm a-ng r NMTTDA vOinna Harris MCJ1 EDITOR. E' C _ Bolton Ok. MOTIONS EDITOR, vaugnn Smart! AM DTTDN a-'nur Minlze da IANAGER: EiizaDatn Danish MUllTlNG EDITOR Eltna Cunningnam sacsiaaaCER Eowaro G. Boss K^jioa RANACER. Daiores CarDaugn W-SIC PNONOTION MANAGER: S.*, *6 OFFICES " * ** A. Soil* 332 200 Park Avenue - r. 1Mi7 Pnone 212-682-5775 Q^r >85 Norm waDasn * rnoi 60601 Pnone 312-726-2442 *Sv'ii 704 7no Oakland - sni' 63117 Pnone 314-647-7667 ^ 9a -8 Wusnire Bouievana jipmia 90036 Phone: 213-938-Om - ^*N*An. l Battery Street -n: iamornia 941,1 Phone 415-398-4444 '' ' * 'Tiortniv iriagann* pu0i>tr*0 ir: i*^'*i Coftirtcton 0 Amnca ''*'** *' * WjPi,ngien DC t>C *Od.- X'fliOn* tpr*&sd ,ft a>. ^ r ** ** :r* tO.iOfs *n comnOwtOf* r r>0! '*** 9 T,,, or*0 tft* Duplication 0* aO- ** ,m' r'OOf*am#fu & products Of ^ * Aatocitioc G*nrai Contractors oi .** `T U`S " Cana<34 7 50 & yoav. H* ^ ,',3r*af5 I0ft.gr. $10 50'Cr yr .v , S and Canaoa 75c tOfttgn t 125 00 ^ oroars and copy should Daoafrmam 1957 E Sf#at y - C 20006 e*vona 202-393-5040 III! FI I II illi iii 11 rr COVER: THE HOME OF THE PRESIDENT has special appeal to every Ameri can Every school child has dreamed of being the occupant George Washington chose the site and took an active role in overseeing the initial construction. For all of its beauty, the Presi dents House is not without faults Andy Jackson remarked that "Hell, itself couldn't keep it warm and Mrs Harrison had grand plans for changing the ap pearance In 1948. the White House was in such a sorry shape that the only logical thing to do was tear it down. Sentiment, however, won over practicality and an AGC contractor restored the mansion. Our cover is courtesy of the Smith sonian Institution directory IS75-B7G THE PRESIDENT'S MESSAGE PERSONAL PARTICIPATION THE PRESIDENT'S HOUSE 1791 TO 1952 AGC FORMS AND PUBLICATIONS MEMBERS. BY STATE. CHAPTER CHAPTERS. BRANCHES. BY STATES MEMBERS. ALPHABETICALLY ADVERTISER'S INDEX 26? 47 53 53 26 32! n L'SFM, t your o,r -h our fin-.- * sier. m.,:c durev T:i 1 lent, repn- onstructor THE MANAGEMENT MAGAZINE AUGUST 1975 VOLUME LVII NUMBER 8 I p-auLL WBUSHIMG. ADVCRTISIMG OfFICES; r i s, n w Was^ngton. D C 20006 W2C2-393-2W0 Sprouse 0* PUftUCATIOMS: Pr*<\k Scfinell* ft*. Rtcnard B<r>Q rUSCTOft: joanna Herns ABOiTt EDITOR: Enc L. Bolton | EDITOR: Arthur Hintze *Oil KCTIONS EDITOR: Vaughn Smartt aoovCnON MANAGER: EfiztDem Danteii snilUTlNG EDITOR. Elana Cunningham S MANAGER: Edwara G Boss 3CAAT10N MANAGER: Delores Caroaugh VTtMNG PROMOTION MANAGER: an v biiay emtiNG oppices [ m I. Angel, Jr. Suite 332. 20Q Park Avenue bv Na* York 10017 Phone-212-682*5775 *6. Cutter 185 North Wapash | Tape Illinois 60601 Phone 312-726-3442 |afin*MnSuite 204. 7no Oakland ' J* Missouri 63117 Phone. 314*647-7667 ^Rflar SA76 Wiismre Boulevard J*V Caiitornia 90036 Phone: 213-938-0111 ^ C CeughAr 22 Battery Street I ' :,mtisco. California 941 ^ Phone: 415-398-4444 J CONSTRUCTOR is a national monthly I "wowne pubtitned by the Associated * - ^ * ti General Contractors 0l America Second ciasi poetege mm4 at Mfaanmgton. D.C. sne additional ottiee. Statemams and ^ nsnuM >n editorials or article* by the editors * >*en are not neceaaarity tnoee of the AGC. haeicatjon of advertising does not imply andorsew*esacts v statamanu maoa concarreng them. >17$ by Associated Genera* Contractors ot retes u S end Cenada. *7 50 per year. |,<*<'avt SIS 00-3 years, foreign. SiOSO par year relief .aaue u S end Canada 75a. loreign. * ^ Oractory issue 625 00 cenuects <nsartion orders and copy should ' to Advemsing Oepartmant. 1957 6 Street. 1 swmgton DC 20006 Rhone 202-393-^040 \\\H *, COVER: THE HIGHWAY TRUST fund has tremendous influence on the economic well-being of the construction industry Yet for all of its imoortance. it Is far from being universally under stood by friends or foes In this issue, former Federal Highway Administrator Frank C Turner pinpoints the true facts concern ing the Fund and the legislation which created it I1Knur# Credit Cover photo by John Neubeuer IN TRIBUTE TO SAUL HOROWITZ He was a born leader: there is no ^4 other kind He advocated with courage and spirit the things in which he believed. Saul Hprowitz. Jr was the kind of a man a man should be MAKING THE MOST OF AN INSURANCE BUDGET Well-known in surance consultant Walter Derk provides some pointers on how to get the most value out of each dollar spent on insurance, regardless of how much money is involved. 18 THE HIGHWAY TRUST FUND-SOUND & SUCCESSFUL F. C Turner 22 sheds the light of truth on the many misconceptions surrounding the highway funding program. THE 1975 TAX REDUCTION ACT The latest tax legislation has considerably more meaning than that rebate check which appeared in the mailbox this spring. For example, the new investment tax credit means that many public utilities will be pushing ahead with their construction plans. 26 WRAPUP INSURANCE: A KNOTTY PROBLEM FOR CONTRACTORS For over a decade. AGC has opposed wrapup insurance as it is sold to construction project owners. Unfortunately, the issue is very much alive today 30 UNSCRAMBLING OAVIS-BACON ADMINISTRATION Labor Editor Arthur Hintze says there's lots of things a contractor can do for him self which make living with the Davis-Bacon requirements less of a hassle 33 DEPARTMENTS PRESIDENTS MESSAGE LABOR NOTES 9 NEWS NOTES 39 45AO INDEX 42 NEW PRODUCTS IN PRINT 47 I. THE MANAGEMENT MAGAZINE SEPTEMBER 1975 VOLUME LVII NUMBER 9 COnSTRUCTOR COVER: CONSTRUCTION EQUIP MENT is the basis for three articles this month. We tell you hcwv to save fuel costs, the whys and wherefores of routine main tenance. and why so much of what you see in equipment to day comes from Europe. Our cover art is entitled "The Big Scoop'' by Don Neske and is courtesy of Koehring Company COAL POLLUTION ... A SYNTHETIC EARTH SOLUTION While we as a nation bemoan our problems with the oil producers, we are sitting on 3.2 trillion tons of coal Our domestic coal is dirty and strict air pollution control laws have put a damper on its use An AGC contractor has a unique solution to the problem 10 CONSTRUCTION EQUIPMENT THE EUROPEAN CONNECTION More often than not. the contractor looking for real technological ad vances and significant innovations in construction equipment has (in recent years) had to look to Europe 14 CONSTRUCTION EQUIPMENT PROPER MAINTENANCE "An ounce of prevention is worth a pound of cure" and never was that old saw more true than today when applied to construction equipment and the routine service it requires 18 CONSTRUCTION EQUIPMENT. FUEL CONSERVATION Given the ever-present threat of higher oil prices, a penny saved on fuel today may be worth several cents tomorrow. Here are proven ways of curbing equipment fuel consumption. 22 STP --THE CONTRACTOR'S EDGE What s good for auto racers is 29 good for contractors too The difference is that our "STP" is engi neered for better performance from supervisors and foremen. GO DOUBLE-BREASTED . IF IT SUITS YOU Double-breasted sportcoats are not in fashion, but double-breasted construction firms are very much the rage among union contractors Here, expert Homer Deakins outlines what a union contractor must take under consideration before forming a second, open shop operation. 32 COLLECTIVE BARGAINING Multi-trade, multi-employer bargaining is the "in " thing when it comes to collective bargaining Here's an in-depth discussion of the concept with illustrative comments from leaders on either side of the table 34 DEPARTMENTS PRESIDENT'S MESSAGE 5 LABOR NOTES 7 NEWS NOTES 39 NEW PRODUCTS 46 AP INDEX 48 in PRINT 50 (instructor THE MANAGEMENT MAGAZINE OCTOBER 1975 VOLUME LVII NUMBER 10 ITOaiAl PUBLISHING, ADVERTISING OFFICES: f E St NJ , Washington. DC 20006 * COM 202-393-2040 RUSHER: Jm M Sprouse SKTO* OF PUBLICATIONS: G Richard Booth 3TQS. A.cnsrd Bing romiCTOR: Joanna Harris fiOCIATE EDITOR: Eric L Bollon JOF EDITOR: Arthur Hintza ACUU. SECTIONS EDITOR: Vaughn Smart) ' MOUCTION NANAGER: ElizaDalh Danieh FAST smilllTING EDITOR: Elana Cunningham IMESS NANAGER: Edtvaro G Boss iuctive ets that r hauler nore ,33s section drauli' SCUIATION MANAGER: Qaioras CarSlugh 1 OBTISING PROMOTION MANAGER: Banay -TOTISING OFFICES - A"ea. Jr. Suns 332. 200 Park Avenue "'** Na* York 10017 Phone 212-682-5775 Cutter 165 North WaDash Illinois 60601 Phone 312-726-2442 Suita 204. 7110 Oakland M.ssoun 63117 Phona 314.647-7667 54 70 Wilshirt Boulavard -`"petes, California 90036 Phona. 213-936-01 il J. Coughin 22 Battery Street < :,*"Cisco California 94111 Pnone 415-396-4444 CONSTRUCTOR it national montnty m92<na puOtitnee oy tna Amociim | '!|l General Contraeiora or America Secono ^'^S'ctaas poeuge part ( maanrngton. DC anc additional onca Statements and axprasiae m aditoriata or artioat by tha editors * ^veutort ra not necessarily moaa ol tna AGO. * * * Pueecation or advertising does net imply endorsev ^earaaueu or statement* mada concarrsng them *7* 1975 Of Associated Ganarai Contractors ol ****" raias US and Canada. |7$0 par year '** mart. Si* 00-3 yaars. toreign. $10 50 per yaar 'agwiar issua U S and Canada 75.'foreign. * 4GC Dtftctory issue $25 00 contracts insertion oreer* and copy snourt 'mroso io Advertising Department. 1057 6 Street * urvngion O C 2000S -non. 202 383-2040 COVER: THE FREMONT BRIDGE is th pride of Portland. Oregon -- small wonder! The saga of the Fremont, one of five orthotropic designs and the largest tied arch bridge in the world is this month's cover story Prctura Cradita pg 15 courtasv ol Parsons. Bnnkerhoff. Quads & Douglas, pg 33 courtasv ol Santa Marta Times PORTLAND'S TRIUMPHANT ARCH Spanning the Willamette River 14 for 2151 feet, the Fremont Bridge is a fantastic design constructed by ingenious methods. HOW TO STRUCTURE YOUR FINANCIAL DATA When presenting financial information about your firm to potential creditors, it's not what you say nearly as much as how you say it. Here s how to put your best "financial foot " forward. 20 THE COLONIAL CONTRACTOR-EDMUND WOOLLEY On July 4. 1776. delegates from the 13 American colonies put pen to the Declaration of Independence at the Pennsylvania State House The building which came to be called Independence Hall was brought to life by the little-noted "general contractor" Edmund Woolley. 24 SAVINGS THROUGH INSURANCE MANAGEMENT Insurance is like taxes A good tax manager pays less than a poor one There is room for negotiation when buying insurance and here are 19 tips to save money without giving up adequate coverage. 29 OOWNTOWN REDEVELOPMENT-HASTE MAKES FRIENDS With the Christmas shopping season approaching, the renovation of a nineblock commercial area worried the local merchants. Since merchants are advertisers, the local paper was duly alarmed. Here's how a con tractor saved the day and won praise from the press. 32 THE FBI VS. EQUIPMENT THIEVES In this exclusive interview. FBI 34 Director Clarence M. Kelley explains the workings of the National Crime Information Center and how it helps track down stolen property. DEPARTMENTS PRESIDENTS MESSAGE NEWS IN REVIEW 7 LABOR NOTES 9 CAPITAL CLIPS 39 3 NEWS NOTES 40 NEW PRODUCTS 43 IN PRINT 47 MARKETPLACE 48 (instructor THE MANAGEMENT MAGAZINE NOVEMBER 1975 VOLUME LVII NUMBER 1 1 \miAL RUGUBHING. ADVERTISING OFFICE!: * St. N W Washington. D C 20006 k;# 202-393-20*0 : Jms M SprouM I OF PUBLICATIONS: G Richard Booth :: Richard Bing f WUICTOR; Joanna Hams PAT! EDITOR: Eric L Bolton I EDITOR: Arthur Hmtza 0*1 SECTIONS EDITOR: Vaughn Smartt KJCTION MANAGER: Etizabath Daman rrmiUTINC EDITOR: Elana Cunningham IsvfSS MANAGER: Edward G Boss paUTION MANAGER: Daloras Carbaugh RWTISING PROMOTION MANAGER: s l B*i*y cavator you-! out it s also A ly any assign* are available shovel, clam* with a crane kets, magnet tator. angling for high pe> ging. demoll- ' job at youi I teen models: ge new plant tern SING OFFICES pm M. AneeS. Jr. Sun* 332. 200 Park Avenue >, New rock 10017 Pnone. 212-6S2-S77S aG. Cutter 185 Norm Wabash opo. Illinois 60S01 Phone. 312-720-2*42 sMskem Sun# 204. 7110 Oakland 4WI Missouri 63117 phone: 314-647.7SS7 wilier 5478 Wilshire Bouleverd 'ingeies. Celilornie 90036 Phone: 213-9384)111 * i CousMn 22 Bettery Street nrsnciscs. Celifornie 94111 Phone: 415-396-4444 CONSTRUCTOR IS i momfity ifVl Pu",*h, by th AMOCiatM 4 ^ ` JEj Oenerti &Comractva of Amor**. S*cnd - *9/ Ccial*a*s* DraOButge ota *t Washington, 0 C and aoditoorw ohiea. Sutamanta and tionM >n aottoriat* or arvcta* &y ma adttor* wdvtor* ara not naeaa*anry tnoaa ot tna AOC. puaaeation o aovaniamg sow not tmpty anooraa- ** product! 9 statamant* mad* concurring mom 1975 Oy Aasoctatad Ganora< Contractor! of ^Wion rataa U S and Canada. *7.50 ow yaar. raari H6.00-3 yaara. roraign. HO SO par yaar * aoa rogwtar >aau# u S and Canada 7S*. fvatgn. : *CC Ouoctory t**u* S2S 00 ^ng contract*, inaomon ordors and copy *noud ''Oae to Advancing Oapartmam iKT E Straot. h*mngton D C 20006 Pnona 202-393-2040 chine COnSTRUCTOR COVER IN CONTRAST TO COSTLY stick-built concrete forming systems used by many contrac tors. the M.M Sundt Construc tion Co. of Tucson. Arizona has been highly successful with the use of prefabricated forming systems The Sundt firm has reduced carpentry cost to levels less than what they were 20 years ago Picture Credit Pg 28. courtesy of Cre ative Arts Studio from the Mm Basic Principles Used m Transfer of Grade ' "NEW APPROACHES" TO CONCRETE FORMING In a concentrated effort to strike a balance between rising wages and falling productivity, the M.M Sundt Construction Co developed a prefabricated concrete forming system. WAGE SETTLEMENTS '75 MORE THAN MEETS THE EYE Wage mcreases this year were moderate, or so it first appears. What s more, there are significant trends afoot for the coming bargaining year EXPLOSIVES - COMPETENCE AVOIDS FATAL MISTAKES Blasters rarely get to learn from their mistakes. Complete product knowledge and a thorough understanding of explosives techniques are the keys to a safe blasting operation. THE AGC EDUCATION AND RESEARCH FOUNDATION Since its inception in 1969. the AGC Education and Research Foundation has come a long way. in brief, here s what it has done so far and what it plans to do in the future TRAINING OF CONSTRUCTION LABORERS In a rare and rewarding pannership between labor and management, the Laborers Inter national Union of North America and AGC cooperate in a training pro gram for prospective and experienced laborers FINANCIAL DATA USE IN COST CONTROL To await the completion of the job to determine gross profit is to miss an opportunity to in fluence the actual gross profit. HOW TO COMPLY WITH OAVIS-BACON RULES Here s what con tractors must do to be sure they are in fact in compliance with all stipulations of Davis-Bacon. DEPARTMENTS presidents message 3 . NEWS IN REVIEW 5 LABOR NOTES 12 CAPITAL CLIPS 41 NEWS NOTES 42 AO INDEX 43 NEW PRODUCTS 45 MARKETPLACE 48 constructor THE MANAGEMENT MAGAZINE DECEMBER 1975 VOLUME LVIl NUMBER 12 EDITORIAL. PUBLISHING. ADVERTISING OFFICES: E` St.. N.W . Washington. D C 20000 Area Coot 202-393-2040 ftjSLtSMEII: James M. Serous* DIRECTOR OF PUBLICATIONS: G. Richard Booth jb1 each! or-made safe n with Umpqua med a team o( ts who begaq truction meetparticipating They workeq management. 1 crews; they despite rough ting conditions* azardous ', thj 2 safety recor^ tty operation the history an innovative ovative insuref 2 to the source au, Wisconsii EDITOR: Richard Bing ART DIRECTOR: joanna Hams ASSOCIATE EDITOR: Enc L. Bolton LABOR EDITOR: Arthur Hmtze SPECIAL SECTIONS EDITOR: Vaughn Smartt PRODUCTION MANAGERS: Elizabeth Danteii Patricia Whittles CONTRIBUTING EDITOR Elena Cunningham BUSINESS MANAGER: Edward G Boss CIRCULATION MANAGER: Delores Carbaugh ADVERTISING PROMOTION MANAGER: Donna L Ba<iey ADVERTISING OFFICES James M. Angel. Jr. Suite 332. 200 Park Avenue Sew York New Vork 1001 7 Phone 212*682*5775 Thomas G. Cutler North Waoash Chicago Illinois 60601 Phone 312-726*2442 Carl Grtahem Suite 204. 7110 Oakland St LOUIS Missouri 63117 Phone. 314*647*7667 Bruce Bigler 64 78 Wiishire Boulevard los Angeies. California 90036 Phone 213-936*0111 William J. Coughfln 22 Battery Street San Francisco. California 94111 Phone 415-396-4444 CONSTRUCTOR a national mommy ~"sro. magazma puOiitned by tne Aaaociateo s(A ^ C j|) Ganorai Contractors of America. Second S.V ' J0 cuus postaga paid at Washington. D C and additional ortiea. Statemenu and ceimons aspressad m editorials or artietes Or Iha aditors sre contributors are not necessarily moaa ot tne AQC. no me publication or advertising does not imply endorse ment or products or statements meda concerning them. Copyright 1975 by Associated General Comractors ot America Subscription rates U $ and Canada. 17 SO per year. (is 00-2 years Si0 00-3 years loraign. StO SO per year Smgte copws regular issue u S end Canada ?$c. foreign. It 00 AGC Directory .esue I2S 00 *o^rtising contracts insertion orders and copy should as torearoed to Aovertismg Department. 19S7 Street. * Washington 0 C 20006 Phone 202-393-2040 COVER: TNE MEDIEVAL GUILDS of Western Europe comoiete'y dominated life m their times in construction tne guilds Deformed many ot me lunctions of modem day iaoor unions ano trade associ ations in tnis issue we trace tne 500 years of the guild system wan an emonasis on the construction craftsmen Our cover art is courtesy of Osterre'cruscne National B'biiOtek Vienna MS FR COD 2549 Foi 164 R THE MEDIEVAL GUILDS wealthy and powerful bodies, the guilds were united m a sense of self-interest Monopolistic by nature, they had tne capacity to totally dominate the economy ot Western Eurooe in construction, tne guilds suoefvi$ed apprentice training, established wage rates, set working conditions ana insured quality of work. 20 JOB SITE THEFT "THANKS FOR MAKING IT EASY" Joe Williams used to earn an unrespectabie living "boosting" construction sites Having time tc think things over while in San Quentin. Joe is now a consultant to contractors m need ot se curity advice Perhaps it does take a thief to think like one 2g INSURANCE --RISK MANAGEMENT There are three tunaamentals to any risk handling program commercial insurance, self-insurance ano risk assumption The latter is often unintentional Some contractors tail to appreciate tne losses tney may incur and their insurance is incomplete 31 PERSPECTIVES ON EQUIPMENT VALUE RECOVERY A piece ol construction eauipment not only has to earn its keep. Pul generate sufficient revenues to pay tor its own replacement Most contractors employ some torn-, ol eauipment value recovery " in tnis round table discussion, live exoens sned iignt on me theories and practices 34 AMERICA'S BUILDERS Walter Nashert is a man with a mission --to ten the tale ot general contractors in construction history His new book serves that purpose m admirable fashion 39 DEPARTMENTS PRESIDENTS MESSAGE NEWS IN REVIEW 5 CAPITAL CUPS 13 LABOR NOTES 15 NEWS NOTES 40 NEW PRODUCTS 43 IN PRINT 47 - MARKETPLACE 48 I