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aw ton in es oh ,-CtM jhi DuOUSheC AL CON?t. N W :m 1980 -?rca - Canaoa :5 00 - 3 - 2 veafs jiar issue oo ag: OUVE *R Sene -RUCTOP. 20006 [O' tnstruc ;ton, D C 3 eccon- -orwB'OeO '.0 tret. n W 2] 3S3-20C The Management Magazine of the Construction Industry FEATURES BUSINESS MANAGEMENT: The Carryover-Basis Rule -- A Classic Example of Double Taxation With this issue. CONSTRUCTOR begins a monthly feature on business management This month, read about a tax law, which, if not repealed, could have a devastating effect on every closely-held construction company, 13 \ Training -- A Management Tool for Bottom-Line Results The need for training workers in the construction industry is evident. The question is, how to manage training so it has an impact on the bottom-line. 21 PS. 21 Construction Apprenticeship and Training Today CONSTRUCTOR takes a look at the state of construction apprenticeship and training today, as well as the changes needed to insure an adequate work force in the future. 24 Manpower and Training In this article, AGC's Manpower & Training Committee Chairman Thomas P. Ryan highlights the association's continuing efforts to improve industry manpower and training. 28 Construction Education Construction, as a changing industry, is requiring more and more highlytrained managers. AGC's Construction Education Committee Chairman Ralph Korte reviews the association's strong network of educational ac tivities. 29 Documentation: An Important Tool for the Construction Supervisor Accurate and complete documentation is an important, on-going part of every construction project. This feature gives the construction supervisor keys to effective documentation. 36 NEWS Newsletter. Industry sees problems with DOE'S building standards . Chapter environment groups have growing influence AGC provides legal assistance to chapters .. Tnphcate regulatory permitting must cease . MSHA exemption could be approved this session Trade reorganization 17 P9 Newsmakers 43 Regional News 44 DEPARTMENTS President's Message Management Notes Labor Notes Legal Matters Political Action Advertiser's Index Classified Commentary Americans first -- constructors second Time to review administrative procedures Ninth Circuit refects NL RB policy on subcontracting clauses G. C. s arbitration award held binding on sub's surety Getting thejob done FEC loosens grip on AGC PAC communications 4 11 37 39 41 49 49 50 This issue's theme, "Siting a Strong Construction Future through Manpower Training and Education" is represented by a field engineer check ing a grade COVER eg. S FEBRUARY 1900 Vol. LXII No. 2 e'C3 KAUAI ?eo cfcior 5tOr e ecnte- an -OOf nun owe1* ouD"c"eo ral crs NA, gnt ?9C. e'ica 5 Car=~a 2* OC - 3 !uia' -s^e 3 00 ~GC 3j C . v TP Se'XJ TBuC^GP I 20006 to >4S^CL`C gio^. C C oe ac:r~' o' jN oe ^aoe -ga?ir>f> will aanao ;c $ suDte:1 c iscfe'.i?- ic ato^ .oor pguxofrwh: rate y S r.Q'-' I- i ma"e: ifS ipts ar-c %y *ar'd"l* DV 'O wd 3~ lf*-s Ma'e'O* s the D'ooe* oiarts the'eo1 anC COD* orwarflec to :ret. N W 21 393 20-0 The Management Magazine of the Construction Industry HAWAII p. 20 FEATURES BUSINESS MANAGEMENT: Risk Management The costs of handling risks have increased dramatically m recent years The risk management concept, detailed in this feature, can provide contractors with excellent profit opportunities. 11 Energy Self-Sufficiency -- Hawaii's Example Hawaii's now on the fast-track to becoming our country's first energy self- sufficient state This article takes a look at Hawaii's innovative programs in alternate energy areas 20 Computers for Construction Thinking about computerizing your business? This feature addresses the "computerization" concerns of contractors and provides tips on computer installations. 25 The Capital Cost Recovery Act of 1979 Present tax incentives designed to enable businesses to replace plant equipment and machinery have fallen short of their intended obiectives The passage of this Act may remedy this situation. 32 1980 CONSTRUCTOR Exposition At the AGC CONSTRUCTOR Exposition contractors can see a wide range of products and services for the construction industry. Here's the Exposi tion schedule and advance information on exhibitors 36 NEWS Newsletter ACCs 1980 CONVENTION The speakers, management forums, occupational divisions and committee meetings, other events Safety essay contest a good opportunity for contractors Interviews with Rep Bill Frenzel and Sen John Chaffee 15 Newsmakers 58 Regional News 63 President's Message Management Notes Labor Notes Legal Matters Political Action Classified Advertiser's Index Commentary DEPARTMENTS Confidence in the future of AGC and the industry Claims avoidance Protected concerted activity Injunction against award to second tow bidder High cost of gelling elected The pnvate sector and national leadership 2 5 48 54 56 57 78 80 The inviting scenerv of Hawaii provides a dramatic setting for AGC's 61st Annual Convention/CONSTRUCTOR Exposition Photo Credit Background photography, Hawaiian Airlines COVER MARCH 1980 Voi LX 11 p. S No 3 i :i ?Oft$ *ti Henry DOei1 nd 8raosne S Monet '9* Stoctton 0 Joftns:on * Genriiie vm Scnecfu :k Carrot Qt KitrtOdli <3 Voo^nees ? Jones ?pn Asnoon -afO 0 3recr>: jr Scnmum gfas C'ow^e* 519^' '$ OufrrW I GENE=At C>[ * E Si'eet. N * Coovngn: !9t | O* America S anc Cana I *eaaros.o$-?5: - J| es reguia? rssut I >gn. S3 X AGC I *9e miO OLM I TMAS'Eo Sene I CON$7a JCT0* 30. 0 C 20006io I d toCO^STRiX Vashmgior DC t>ust oe tear"Owiecjemen; 9 I ats sna" oe mta | s maga/'ne $ of or oarragt c ?ciec -s suojectc iOe aiscretior- e Dubl'Cai'O^ joor 3 cvrof agree*** jrreni rate tnbutor s ngm. e i :arec<a' ma<efl. * anusenots anfl^ff | Dress warranty fr is m no wav an others Mat** | *mns me proof nor pans men* tot of connr. at of and pro** | M forwftrtoG V i Street N# I202i S3-XX. The Management Magazine of the Construction Industry FEATURES BUSINESS MANAGEMENT: The Contractor As Real Estate Developer As the inflation rate spirals, real estate remains one of the few hedges against it. This feature provides expert advice on the risks and benefits of entering the business of real estate development. 11 Maine Contractor Takes on Challenge of AGC Presidency Ival R. Cianchette, chairman and CEO of Cianbro Corporation, Pittsfield, Maine, and AGCs 61st president, sees an urgent need for a "return to reason" on the part of government. In an interview with CONSTRUCTOR, he urges all AGC members to become more active in combating excessive government regulation. 22 AGC Policy The methods and procedures a contractor uses to obtain business may later affect his capacity to keep costs down and projects on schedule. Because of the importance of these areas, CONSTRUCTOR summarizes AGC policy on procurement of construction, contract provisions and pro cedures, and bidding procedures 27 AGC Regional Issues To find out what issues concern AGC members in various regions of the country, CONSTRUCTOR recently interviewed seven AGC chapter managers, six of whom are members of AGCs Managers' Council Liaison Committee. Their views are detailed in this article. 34 NEWS Newsletter . . Results of ACC's Cost of Government Regulations Survey Training programs now exempt from ERISA reporting re quirements . Indiana chapter helps solve state highway funding prob lem ... Career film promotion flyer available CGAC participation on the nse: EPA pledges commitment ro strong construction grants programs. Inter national construction concerns. Newsmakers Regional News IT 46 46 Management Notes Labor Notes Legal Matters Political Action Classified Advertisers Index Commentary DEPARTMENTS How ro prequalify for bonding Contractor awarded compensation for illegal stnke Economic duress "Big Business Day" Government regulations and the business community 9 41 42 44 49 49 50 Examples of Cianbro Corporation's heavy-industrial, marine, highway and bridge, and municipal-utilities work, offset the portrait of Ival R Oanchette, AGCs president for I960. COVER APRIL 1980 Vol. LXII No 4 0 America ?nrv Rd 3snaw it efc >9an OCKTOr naion :ilte necmer 'fOll iDaii shoor Brecr*-: wnufv iS OuD''ShM = RAL CONeei. n w. Tgm. 1980. -nofica to Canaod. $25X - 3 - 2 varc guia- issue S3 00 AGO 3*0 Ol!VE 5TER SftC *5TRUCt0R. C. 30006 io :onstrucTgion. 0 C be accord fOgefT'en; oi an oe agafTe w* r oamage <c 9 SuOieC! TO jacretio^ to -,auon joe?' agreeirieni. : ratt. >**** o^s ognt. > si maiiefl. m* -r^ts and/or warranty Dy towBv annrs Maiena sma proc j#rts me^ao*. ot conten. nd ptocar orweroefl to treat. N w . 2) 3B3-20* "h The Management Magazine of the Construction industry FEATURES BUSINESS MANAGEMENT: Credit - Getting Your Feir Shore In these inflationary times, credit is tight and costly in all in dustries - especially construction. In this feature. Dennis W Bersch. CPA. gives contractors expert advice on getting and keeping good credit. 11 What Should A Contractor Expect From a Professional Surety Bonding Agent? A contractor should select his surety bond agent with the same care he would exercise in choosing his CPA, banker or lawyer. In this feature Charles H Carman, president. National Association of Surety Bond Pro ducers, discusses the characteristics of a good, professional surety bond agent and how to select one. 16 Limitation of Liability Limiting liability is an important way for architects or engineers to hold down premiums. In this article, Edwin R. Young, CPCU, chairman of the Construction Insurance Committee of the National Association of Surety Bond Producers, discusses limitation of liability and its impact on the con p. 16 struction industry, 24 Corporate and Personal Agreement of Indemnity Under Suretyship Obligations Corporate suretyship in the construction industry is the most effective weapon available against defaults or failure to perform under contractual obligation, according to Richard H. Schuerholz of Fidelity and Deposit Company of Maryland, who discusses corporate suretyship and its impor tance to the construction industry in this article 26 MONEY IN THE POCKET: A New Perspective Donald Brenner, direc tor of Arthur Andersen & Co.'s construction industry program, begins a new column discussing approaches to business management for construc tion contractors in a rapidly changing business environment. 41 NEWS Newsletter 1990 will see more bargaining than in last five years. CLRC reports . Saul Horowitz Award recipient selected . TRIP links bar} roads to gasoline waste Renovation of AGC headouarters completed . Wmdlall Profits Tax Bill signed into law International Construction Concerns Newsmakers Regional News 19 42 48 p. 26 President s Message Management Notes Labor Notes Legal Matters Political Action Classified Advertisers Index Commentary DEPARTMENTS Return to reason What to do with excess cash Union "hold harmless " clause Board's decision cannot be appealed by agency Congress' pressing task The 1961 budget The politics of economic policy 4 9 33 34 36 49 49 50 Insurance and surety are two of the most important concerns contractors have to help them maintain a profitable business Photo by Thiei Studio COVER MAY 1980 Vol LXII No 5 `i ii i i i i t i ii m' D The Management Magazine of the Construction industry FEATURES CM's Conflict of Interest Question Construction Management (CM), an idea introduced more than ten years ago has caught on in a big way. bigger perhaps than most contractors desire. In this feature Campbell L Reed, director of AGC's building divi sion. explains why. The Architect and Contractor Must Be A Team Charles E. Schwmg, president of the American Institute of Architects (AIA), discusses issues of liability facing architects and contractors. He urges a return to cooperation and understanding to benefit architects, contractors and the public interest Separate Contracts The "separate contracts" alternative to the AGC-supported system of us ing one general contractor to hold all subcontracts, to supervise, manage 'and coordinate the |Ob for an owner, is currently being pushed in a number of quarters This feature reviews the AGC-supported single con tract system as well as the arguments of separate contracts advocates Documentation for Construction Supervisors Accurate documentation is an important part of every construction pro ject This feature presents a detailed explanation of the documentation that should be prepared by the field supervisor NEWS Newsletter Progress continuing on start-up of competency-based training program Corps retires two dredge vessels as industry capability in creases GSA announces five percent retention pokey A GC training program used m Ohio education program for small and minority contractors Interna tional construction news President's Message Management Notes Labor Notes Legal Matters Political Action Money m the Pocket Classified Advertisers Index Commentary DEPARTMENTS Return to reason n G C. s may be sub/ect to CPA vehicle inspection Decision-making at the AIL RB Or equet clause -- constructive change To have or not to have 1energy1 Pluggmg a ma/or cash pram MBC programs and social progress 4 9 38 39 42 43 49 49 50 COVER fpfjj ffTlT TO ir fpl sffT) 1 m w Ud y* J L J The Management Magazine of the Construction Industry DIRECTORY of AGC GENERAL CONTRACTOR and NATIONAL ASSOCIATE MEMBERS 1980-1981 Business Management: Developing Effective Managers John P Cleaver, president, the J.P Cleaver Company, Inc , Boston, Mass,, discusses methods of developing effective managers m the 1980's. He outlines thirteen human factors a contractor should know about each of his employees m order to manage them effectively. AGC Rates Congress A special edition of the annual "AGC Rates Congress" - National AGC s monitor of floor votes of importance to contractors. AGC PAC Through AGC's Political Action Committee IP AC] contractors work to seat a Congress that will be responsive to the needs of the construction industry. This special feature section highlights AGC PAC's goals and successes and answers contractors' questions on the role of PAC and how it works for them. AGC General Contractor Directory: Chapters, Branches by State: Members Alphabetically Index to AGC Chapters Members Alphabetically National Associate Directory Geographic Listing Index to AGC Chapters National Associate Alphabetical Listing 70 71 117 IIS N-48 NEWS Newsletter A new screen for OSHA policy Where construction ac tivity is rising and falling NEST update Wisconsin Chapter, AGC of Milwaukee working on standard bidder's proof of responsibility form Producer's Council changes name DOl s annual construction in dustry report available Survey reveals twenty percent increase m theft and vandalism New staff members at the AGC National office International construction news fancy Of A/ner^ ER ACC FAIRS HON * 3ER ER R RS * .'9E1N1ESRDAv, c Sirtr N W ocvT'gh' >f A/w-cj mo Cms. 1*. $X X 4.00 s roguH .n. X AGC * pmo OiNt '4ASTEP Sr4 xstrlcto* .DC 20006i* ttCONSTRK Mfrngto' D C j*t o* tcsxr* 3Wpynnf d s mtheagffa:t* oi o* itad * feCMae m eoat Kunpon m m?9**** -rnt rt DutOf 8 ten rrw+C ** tacnca ma 9 me ft to jr> no wsr * + 3U1 of oo*att of and PW Smei. *> qgbj The Management Magazine of the Construction industry FEATURES Conserving Energy Through Improved Highways Due to the skyrocketing prices of petroleum products, energy conserva tion has become increasingly necessary. This feature explains why im proving our nation s highways -- through construction, reconstruction and rehabilitation - will help to conserve energy. 18 Have Highway Programs Become a Casualty of the Property Tax Revolt? What has been the effect of Proposition 13 and other state taxation P- 1 measures on highway programs in the United States? Dr. W.L. Gar rison and David W. Jones of the Institute of Transportation Studies. University of California at Berkeley, analyze the status of funding mechanisms for both new construction and maintenance of America's highways. 24 Highway Contractors Pave the Way for Better Media Communications The business community often has problems getting its "message" to the media. This article examines a communications seminar developed by The Road Information Program [TRIP], which gives highway con tractors and other local business spokesmen expertise in dealing with the media 33 Concrete Segmental Bridges Segmental prestressed concrete construction is a growing concept for constructing long span bridges. Walter Podolny, Jr., Federal Highway Administration, and Gordon K. Ray, Portland Cement Association, ex amine this popular method of bridge construction. 34 P NEWS Newsletter Congressional rescue of PY '80 highway funding doesn't end suspense . AGC prepared for legal action against EPA MBE policy . Ex panding role for A GC Manpower and Training Services Operation "Return to Reason " editorial cartoons OPiC likely to face another extension battle Newsmakers Regional News 11 46 48 DEPARTMENTS President's Message Supreme Court makes congressional return to reason imperative Management Notes Mpnev is still the best incentive Labor Notes Bargaining for "no-strike" provisions: the need for specificity Legal Matters Site conditions differ from drawings Political Action Protecting your political rights Money in the Pocket Cashing m on management protections Classified Advertisers Index Commentary A 36-mch ladder to an unused walkway .. 569-day saga A 7 38 40 41 44 16 16 50 p. M John B Pike 6 Son. Inc., of Rochester, N Y. [AGC], used the cast-inplace balanced cantilever method and form travelers to erect these twin bridges over the Genesee River near Rochester COVER Photo Credit: Portland Cement Association AUGUST 1900 Vol LXII No 8 rVCIOr of America R AGC *ION : Henry e*l fieec Bradshaw jevigen Cioctton ormstc* entitle Scftec'-'er Cerroll Cromwel' simbaii ^oomees Asnoor : O'B'ecni Sc^mun* 1) >s DuDi>shed NERAi con Street. N w . Oyrigrv. ifflD. America enc Canada, s. 00 - 3 00 - 2 years, rvguia' <ssut S3 0C AGC peic Ol'VE ASTEQ Send NSTR'JCTOR 0 c 20006 ior : CONSTRUCrvngion. D C >t M acconv v^eogement of Shan oe made -nags? ne or damage to d is select to discretion 10 ucatior- Upon io agreement. rate *mcn Jtor S rigM. > ntt maned, n senots and/or n warranty fry n no wa* an rvs Matanp .i tt>e proov* parts mono*, jt o< con*l forwarded to Street N W . 202) 3S> 20 irpT1 fTTlT "inn ir m JdI1 tiDL IMJUd I vi The Management Magazine of the Construction industry FEATURES 3 Business Management: The Legal Effect of a Price Quote in a Competitive Bid Situation To avoid litigation, it's wise for contractors to be aware of the legal con sequences of their actions concerning price quotes in pre-bid situations. This feature will give valuable background information on this topic. 11 Service to Client is J.S. Alberici's Guiding Principle J.S. Alberici Construction Company, Inc., St. Louis, Mo., has made its "service to client" motto the driving force behind an almost unbelievable record of completing every project on-time and within budget for 40 years. 22 Synfuels: A Market for Everyone Synfuel - liquid and gaseous fuels produced from coal, oil. oil shale, and plant matter -- may be a maior solution to our current energy snortage. In this feature, CONSTRUCTOR examines this new technology which can develop into a lucrative market for contractors 27 Small-Scale Hydropower Small-scale hydropower is becoming an attractive energy source in P- 11 these days of rapidly increasing fossil fuel costs. This time-honored method of harnessing electrical energy from water is becoming popular again and could prove to be a viable market for heavy construction con tractors. This feature presents a detailed explanation of this re-born technology. 32 Recycling Oil Growing concern for the environment has led to legislation which will make traditional methods of disposing lubrication oil illegal. This feature examines a cost-effective method of recycling oil. 37 The M-X Missile System The M-X Missile System, will prove to be of great interest to the con struction industry during the next ten years. In this feature Lt. Col Mike Terrill, M-X public affairs officer, explains how this program will offer thousands of contracting opportunities for contractors throughout the US. 40 NEWS Newsletter . . . .AGC attacks EPA MBE problems at national level and m regions NelloL Teer Company merges with Koppers Company Carter Ad ministration shows only symbolic support for export expansion AGC testifies on tax-cut legislation. U. S export promotion Joseph K. Bratton selected as next Corps of Engineers chief .............. ................... 17 Regional News 57 President's Message Management Notes Labor Notes Legal Matters Political Action Money in the Pocket Classified Advertisers Index Commentary DEPARTMENTS Return to reason Planning ahead on the job State of the unions Breech of contract. Measure of damages Who elects the President? The entrepreneur's challenge Reahry versus over-regulation 4 9 45 47 50 51 44 44 56 J.S Alberici Construction is working on 45 coffer dam cells to enclose COVER a 1,400-foot by 800-foot area of the Mississippi River for construction of the dam section of Lock and Dam 26. Photo Credit: William Jayne SEPTEMBER I960 Vol LXIl No 9 B i l i i f ngle, trucules, long ig to aper adio o an "All ntry 00 rv ures oect A'ith it of ;n it ; are acn of oroOc1 inthe eral stry oials eiHL The Management Magazine of the Construction Industry PUBLISHER HuOert Beatty. Executive Vice President Assooateo General Contractors of America ASSOCIATE PUBLISHER John W Sroxe Ass t Executive Director. AGC DIRECTOR OP INFORMATION William Jayne EDITOR Diane B Snow ASSOCIATE EDITOR Jerome N. Jefferson PUBLICATIONS MANAGER Patricia Whittles marketing manager Becky Lower BUSINESS MANAGER Oonaid A Scott CONTRIBUTING EDITORS AGC Newsletter William Henry Building Campbell Reed Collective Bargaining Construction Education Dennis Bradshaw Ernie Jones Employment & Training Equi Employment Chns Monefc Oooortunity international Constr Heavy industrial Marie Gavigan George Stockton Oevic Johnston Highway Legal Legislation John Gentilie Marvin Schechter Chuck Carroll James Cromwell RoDCh Kimball ingno Voorhees Municipal Utilities Joseph Ashooh Open Shoo Richard O'Brecht Safety Arthur Schmuhl CONSTRUCTOR USSN 0162-619D is published montr-v ov the ASSOCIATED GENERAL CON TRACTORS of AMERICA, 1967 E Street. N W . Washington. D.C 20006 Copyright I960. Associated General Contractors of America SUBSCRIPTION RATES U S and Canada. Siooo >er year. STS 00 - 2 years. *25 00 - 3 tears, foreign $22 00 per year. $44.00 - 2 years. $66 00 -- 3 years Single copies regular issue U.S and Canada $2 00. foreign. $3.00. AGC DIRECTORY ISSUE $36 00. Controlled circulation postage paid OLIVE BRANCH. MISSISSIPPI POSTMASTER Send form 3579 address change to CONSTRUCTOR. 1967 E Street. N W . Washington, D C. 20006 lor address of fulfillment house) Contributions should be mailed to CONSTRUC TOR. 1967 E Street. N.W . Washington, D.C. 20006 Unsolicited materials must be eccompanea py return postage Acknowledgement of any decision upon such materials shall be made withir. go working days This magazine will assume no responsibility for loss of or damage to such material. Any metenaf aoceoted a subject to tension as necessary m our sole discretion to meet me requirements of tha publication Upon publication and tn accordance to prior agreement, payment may be made at our current rate, which cows the author $ and/or contributor's right, bfe end interest m and to the materiel mailed, in cluding. but not limited to manuscripts and/or material shall constitute an express warranty by the contnbutor that the material is in no wav an in fringement on the nghts of others Materiel published m CONSTRUCTOR remains the propei h of the magazine No material, nor pens thereof. be reproduced nor used out of context. Mtnoui pnor. specific approval of and prooer credit io the magazine Advertising materials should be forwarded to Advertising Department. 1967 E Street. N W . Washington. D C 20006. Phone 1202] 383-2040 FEATURES Business Management: Company Survival During A Recession "Recession" has become a word that can scare any contractor who was in business in 1974-1975. To prepare for any future recession astute contractors should plan alternative strategies to moderate its impact. 7 The New York State Alliance Program: Majority and Minority Contractors Work Together to Help Themselves An innovative minority internship program developed by the General Building Contractors of New York State, The New York Building Chapter, AGC, is in progress to help assure the long-range business success of minority and female contractors. 26 H MBE/WBE Regulations: The History of AGC's Involvement Ever since the beginning, even before the Public Works Employment Act of 1977 and Public (Law95-507, AGC has been actively involv ed in every stage of Minority Business A./V "k Enterprise [MBE] and Women's Business Enterprise [WBE] regulatory development. This feature chronicles the association's continuing actions to guard the construction industry's proven historical strength in the open competitive bidding system. 29 MBE/WBE Contractor Directory AGC's third national list of MBEs in construction and first list of WBEs -- with approximately 17,000 entries. 46 NEWS Newsletter Contractor challenges SPA on MBS problem end wins TRIP gives industry feeders preview of national publicity campaign on highway needs ACC testifies on highway reauthonza- non and financing, uniform procurement system Surplus of collage graduates should give con struction firms better choice of new talent if force account goes, so will many MBS problems, President Cianchette tens Congress . New suits filed against DOT MBS regulation Company operations survey highlights international construction news 15 Regional News Newsmakers 44 President's Massage Management Notes Labor Notes Legal Matters Money <n the Pocket Classified Advertiser's index Commentary DEPARTMENTS Return to reeson: preliminary results Time management tips Pre-hire agreements and bargaining group membership Notice provisions m payment Pond - regular mail Begin planning now to save t980Sf tax dollars How to create mftavon-recassion 2 5 39 40 42 2B7 287 2BB This month's cover symbolizes the growth of minorities and COVER women actively involved in the construction industry. Artwork: Uz Haywood. OCTOBER I960 Vol. LXII No. 10 The Management Magazine of the Construction Industry PUBLISHES Hubert Beany. Executive Vce President Associated General Contractors of America ASSOCIATE PUBLISHER John W $rka Ass t. Executive Director. AGC DIRECTOR OF INFORMATION William Jayne EDITOR Diane B. Snow ASSOCIATE editor Jerome N Jefferson PUBLICATIONS MANAGER Patricia Whittles MARKETING MANAGER Becky Lower BUSINESS MANAGER Donald A Scott CONTRIBUTING EDITORS AGC Newsletter William Henry Building Campbell Reed Collective Bargaining Dennis Bradshaw Construction Education Employment b Ernie Jones Training Chns Monek Equ*< Employment Opportunity Mane Gewgan international Constr George Stockton Heavy industrial Devd Jonnston Highway Jonn Gentiile Legal Marvm Schechter Legislation Chuck Carroll James Cromwell Robb* Kimball Ingnd Voorhees Municipal Utilities Joseph Ashooh Open Shoo Richard O'Brecht Safety Arthur Schmuhl CONSTRUCTOR I ISSN 0162-6191) isoublished mommy by the ASSOCIATED GENERAL CON TRACTORS of AMERICA. 1967 E Street. N W . Washington. 0 C. 20006 Coovnght 1900, Associated General Contractors of America SUBSCRIPTION RATES U S and Canada. $10 00 per year. $15 00 - 2 years. $25 00 - 3 VM'$ foreign $22 X per year. $44.CD - 2 years. $66 00 - 3 years Single coo*s regular issue U S and Canada $2 X. foreign. $3.X. AGC DIRECTORY ISSUE $36.X- Controlled circulation postage oatd OLIVE BRANCH. MISSISSIPPI POSTMASTER Send form 3679 address change to CONSTRUCTOR. 1967 E Street. N.W.. Washington. D C. 20006 Cor address of fulfillment house!. Contributions should be mailed to CONSTRUC TOR. 1967 E Street. N.W.. Washington. D C. 20006 Unsol>atad materials must be accom panied bv return postage Acknowledgement of any decision upon such materials shall be made withm 60 working days This magazine will assume no responsibility for loss of or damage to suer, material Any matanaf accepted is subtect to revision as necessary m our sole discretion to meet tne raauirements of this publication Upon publication ano m accordance to prior agreement, payment may be made at our current rate, which covers the author's and/or contributor's nght. ti es and interest m end to the material mailed, moudmg, but not limned to manusenpts and/or material shall constitute an express warranty by the contributor that the material is m no way an in fringement on the nghis of others Material ouonsned m CONSTRUCTOR remains the proper ty of the magazine No material, nor parts thereof, mtv be reproduced nor used out of context, without poor, specific approval of end proper aeon to the magazine Aovertiang materials should be forwarded to Advertising Department. 1967 E Street. NW, Washington. D C 20006 Rhont 12021 3B3-2OS0 FEATURES Business Management: Effective Marketing and Planning -- The Keys to Success Marketing - the planning, pricing, promoting and placing of one's product and services -- is one business management func tion that is fundamental to the success of any contractor in today's market. Four municipal-utilities contractors discuss their marketing and planning strategies. 9 Lt. Gen. Joseph K. Bratton: Facing the Challenge of the Eighties In this CONSTRUCTOR exclusive interview, Gen Bratton, the new chief of the U.S. Army Corps of Engineers discusses his outlook for the Cores' future. 22 Water System Management The northeast corridor of theu.S. is fac ing a serious deterioration of its water systems. Joseph P. Ashooh, director of AGC's Municipal-Utilities Division examines this problem and describes how it has the potential to develop into a major market for M-U contractors 28 Fine-Tuning Construction Grants Sen John h Chafee [r-r.i ]. a member of the Senate Subcommittee on Environmental Pollution suggests ways to fine-tune the construction grants program for the eighties. 32 The Importance of Standard Contract Documents for the Construction Industry Standard construction documents and standard general conditions for construction contracts save time and money because they clarify many construction situations before contract problems arise. 34 NEWS Newsletter ... DOT MBE regulation found unconstitutional in early court test Collective bargaining outlook.. President Canchette urges members to beta eliminate government competition with pnvate industry A GC approves legal investiga tion of OFCCP's recycled "7Q" rule . Sen. Randolph tells highway contractors, "The highway program must be continued no matter what the problems are" AGC and the National Constructors Association form joint committee Nominees for next division chairmen, vice chairmen selected AGC Executive Vice President focuses on members' cooperative efforts Campbell Reed reelected to NIBS consultative council executive committee Obituary........................ ................... 17 Newsmakers................................................................................................ 51 President's Message Management Notes Labor Notes Legal Matters Political Action Money in the Pocket Classified Advertisers Index Commentary DEPARTMENTS Return to reason: Make Amenca progress through construction Where nor to save Funding for the future: Pension plans m transition Recission of contract Predictable changes in the 97th Congress A stitch in time The burden of government regulations 4 7 41 45 47 49 57 57 56 A welder secures a copper conduction strip used to facilitate the thaw- COVER ing of water systems installed in extremely cold areas. Background photo, by A C Mc Carthy. courtesy of United States Pipe and Foundry. Inset photo, by Diane B. Snow VBPA NOVEMBER I960 Vol LXII No 11 PUBLISHER Hut*'' Beatty. Executive Vice President *ssoca:-d General Contractors of America -SSOCIATE PUBLISHER Donald A Scott Afs i Executive Director. AGC C =ECTOR OP INFORMATION William Jdvne EDITOR Diane B Snow ASSOCIATE EDITOR Jerome N Jefferson PUBLICATIONS MANAGER Patricia Whittles MARKETING MANAGER Becky Lower CONTRIBUTING EDITORS AGC Newsletter Builamg William Henry CampbeN Reed jnst'uc on Education Employment 6 Erne Jones Training Eaua Employment Opportunity interna nonai Constr i-ieavy industrial Chris Monek Mane Gavigan Frank Scnneiler Oavid Johnston Highway John Gentiiie i3Dor Relations Dennis Bradshaw Legal Legislation Richard O'Brecht Marvm Schechter Chuck Carroll James Cromwell Robbi Kimball Municipal utilities Ingrid Voomees Joseph Ashoon Safety Arthur Schmuhl ::ns -ructor ussn ot62-6t9U is published Dv the ASSOCIATED GENERAL CON- :i;"CRS of AMERICA. t957 E Street, N w , as-m;'on D C 20006 Copyright I960. aocia:-?o Genera' Contractors of America SJSS-RiPTiON RATES US ana Canada, CXoer year. $15 00 - 2 years. $25 00 -3 I w fceign $22 X oer year, $44 X - 2 years. | 4 30 - 3 years Smgie coo*es regular issue $ a-: Canada $2 X. foreign. $3 X AGC | : aECT DRY ISSUE $35 X Contmied circulation postage paid OLIVE | HANO. 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D C 20006 Phone 1202) 383-2040. iD The Management Magazine of the Constntction Industry FEATURES Business Management: Transferring the Family Business Keeping the family business in the family is sometimes easier said than done This feature presents practical background on two methods to successfully transfer the business from parent to child 13 AGC National Headquarters The AGC National Headquarters building was recently enlarged and renovated to better serve AGC members. These pictures illustrate some of those changes and improvements 24 AGC Chapter Offices Nationwide AGCs chapters bring services and support to members at the local level This pictorial shows a few of the association's 113 chapter offices na tionwide. [Photo at left, AGC of Seattle ] 26 CONSTRUCTOR Publications Library A comprehensive presentation of the tremendous resources contained in AGC s numerous publications. This collection is the product of thousands of AGC members working together to improve the industry. 27 AGC Staff Responsibilities The AGC National staff consists of more than 100 people actively Involved in ah aspects of the construction in dustry. Their work coincides with the activities and services provided by 113 AGC chapters nationwide. 52 Staff Organizational Chart 54 The S.I.R. Award The S.I.R. Award - the coveted award of the con struction industry -- is AGCs way of saving thanks to those who have made outstanding contributions to the construction industry This feature provides detailed information on the award. 57 NEWS Newsletter TVA begins ro move away from force account AGC PAC. with 30 percent suc cess m November ejections, toots ahead to 1962 Ways to set aside OSHA records-access ruie ex amined Schedule of remaining AGC management conferences Supreme Court will review comparable worth NIBS launches pro/ects to improve regulatory systems, standardize building definitions, speed acceptance of products and technology M$HA proposes change m assess ment of civil penalties MX Missile System rvouires eight Pusy construction years Obituary Military construction m the Indian Ocean region . 17 Newsmakers 68 \ Regional News 69 President's Message Management Notes Labor Notes Political Action Money m the Pocket Classified Advertiser's Index DEPARTMENTS Return to reason - on the nght track Weather and the contractor. Davis-Bacon m the 'SOs flections score box MIS - A tool for greaterprofits A 7 61 62 63 72 72 AGCs numerous publications -- many developed specifically for COVER contractors by contractors -- offer 8 wide range of up-to-dpte information resources VBPA DECEMBER I960 Vol LXII No 12 It 0611!