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CALIFORNIA
CONSTRUCTOR
BLACK HISTORY MONTH 6 SAFETY EXCELLENCE 16 REVIEW AND FORECAST 18
Learn
Engage
Influence
JANUARY/FEBRUARY 2022 • www.agc-ca.org
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CALIFORNIA
CONSTRUCTOR JANUARY-FEBRUARY 2022
12
6 BLACK HISTORY MONTH
Increasing Black
Representation in
Construction
16 HONORING SAFETY
EXCELLENCE
AGC Honors
Winners of 2021
IN EVERY ISSUE
2 MOVING MOUNTAINS
AGC member engagement is
at an all-time high – and is our
key to our continued success
in 2022.
4 ADVOCATING FOR THE
INDUSTRY
Black workers are significantly CSEA Competition Industry’s voice critical as
Legislature is poised to resume
underrepresented in the AEC fields. How Nearly two dozen firms and individuals
work on bills impacting
can the industry change that? honored for safety excellence as AGC
construction.
helps industry build a culture of safety.
BY CAROL EATON
24 BUILDING YOUR NETWORK
BY CAROL EATON
Construct 2021 delivers,
12 PROJECT DELIVERY TRENDS
18 REVIEW AND FORECAST drawing strong turnout with
Alternative Project mix of education, business and
Delivery Gains Review and Forecast networking events.
Construction prospects brighten, but
Ground coronavirus clouds linger
SHORT SUBJECTS
LAX projects among others illustrate the BY KEN SIMONSON
benefits of more collaborative approaches. 22 LEADERSHIP LINEUP
BY CAROL EATON 28 SUPPORTING YOUR SAFETY
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 1
MOVING MOUNTAINS
Published bi-monthly
for members of the
Associated General
Contractors of California
3095 Beacon Boulevard
West Sacramento, CA
95691
(916) 371-2422
www.agc-ca.org
PUBLISHER
Al Rickard
Association Vision
(703) 402-9713
A New Year to arickard@assocvision.com
www.associationvision.com
Engage With AGC EDITOR
Carol A. Eaton
BY DINA K IMBLE, PRESIDENT, AGC OF CALIFORNIA Eaton Communications
(707) 789-9520
carol@eaton
I
can hardly believe that 2022 is upon vocacy at state, regional and local levels, communications.com
us! AGC’s talented and dedicated staff relationships with our union partners, and
DESIGNER
and our 2020-2021 volunteer leader- connecting people within our industry. THOR Design Studio
ship navigated through the unprecedented Now is the time to also be leaders in Washington D.C. | Austin
past couple of years, and for that we are all workforce development, building strong info@thor-studio.com
truly grateful. With this new year comes cultures in our companies, becoming www.thor.design
fresh enthusiasm that we can once again champions in the industry around in-
CORRESPONDENCE
focus on building projects, our teams and creasing diversity within our companies,
Address editorial and
our relationships, and less on pandemics, and building an environment that invites, circulation correspondence
remote work and a “new normal.” I’ve been retains, and elevates young people in to:
accused before of being an optimist, but ways they can be passionate about and California Constructor
isn’t that a leader’s responsibility as we thrive. Being chosen by our membership AGC of California,
navigate what this new year brings? to serve in this role signifies to me that 3095 Beacon Blvd., West
Sacramento, CA 95691
I’m honored and humbled to be the we truly value the diverse perspectives
(916) 371-2422
first woman and first specialty contractor and collaboration that will drive success or call Carol Eaton at
to hold the office of President at AGC of for our companies, our association, and (707) 789-9520
California. The new role has me reflecting the industry. or eatonc@comcast.net.
on what leadership really means, within Construction is a relationship business,
our companies and within an industry and we all look forward to our 2022 in-per-
association. son events. If you missed Construct 2021
For over 100 years, AGC of California this past November in Indian Wells, you
and our members have been the leader missed the excitement in reuniting with COPYRIGHT 2022
in entrepreneurship, innovation, and ad- friends and peers at our first in-person
2 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2
statewide event since the pandemic. momentum by expanding our training
Construct 2021 was a huge success, offerings, connecting our members and
with 460 people in attendance, generous their teams with issues they are pas-
sponsors, and a record setting 90 students sionate about, continuing to strengthen
from our AGC student chapters. It was a
chance for our membership to catch up on
relationships with our union partners,
public agencies, legislators, and each
Construction is
the wins of the association, practical ap-
plications and forecasting of cutting-edge
other, and sharing the career opportu-
nities our industry offers young people a relationship
business, and we
technology that will revolutionize our through Build California, AGC Student
industry, and engaging keynotes on how Chapters and Emerging Leaders groups.
all look forward
to build company culture and support the AGC staff and our 2022 slate of vol-
mental health of our employees. And just unteer leaders are ready and excited for
like old times, there were a few rounds the challenge. How will you engage and
of cocktails, business deals, and stories be a part of this year’s success? to our 2022
of the past taking place in the hotel bar.
It was awesome to reconnect. in-person events.
Member engagement at AGC is at an
all-time high (nearly 65%), and member
recruitment blew the competition out Kindest regards,
of the water in 2021. We’ll build on this Dina Kimble, President
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CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 3
AGC OPPOSES public policy that arbitrarily sets aside
ADVOCATING FOR THE INDUSTRY
land that otherwise could aid in the development of
California’s infrastructure needs.
What to Expect in the
2022 Legislative Session?
BY FELIPE FUENTES
T
he Legislature reconvened January hearings and legislative advocacy. any tax policy that arbitrarily targets high
3, 2022 to begin the second year of As for unfinished business, the Leg- income businesses or earners.
the 2021-22 legislative session. It islature deferred action on an unusually
has until February 18th to introduce new large number of measures because of ǃ AB 564 (Gonzalez D) Biodiversity
bills for consideration in 2022. Those bills the limitations set by COVID protocols. Protection and Restoration Act. This
that did not advance in 2021, known as Of those two-year bills, there are several bill would establish that it is the pol-
“two-year bills,” have until January 31st to priorities bills that AGC remains in op- icy of the state that all state agencies,
move out of their house of origin. position to, as outlined below. boards, and commissions shall utilize
With the global pandemic stifling their authorities in furtherance of the
the Legislature’s ability to hold its usual ǃ AB 310 (Lee D) Wealth Tax. This biodiversity conservation purposes
amount of committee hearings, fewer bill would, for taxable years beginning and goals of the Governor’s executive
bills advanced through the bill process on or after January 1, 2022, impose an orders. The bill would require all state
in 2021. The 2022 session will likely be annual tax at a rate of 1% of a resident agencies, boards, and commissions to
again hamstrung by the nagging COVID of this state whose worldwide net worth consider and prioritize the protection
protocols and uncertainty brought on by is in excess of $50 million, or in excess of biodiversity in carrying out their
the Omicron variant. of $25 million in the case of a married statutory mandates. It would require
Additionally, the logistics of the leg- taxpayer filing separately. The bill would strategies related to the goal of the state
islative process will undoubtedly be also impose an additional tax at a rate of to conserve at least 30% of California’s
complicated by the reconstruction of the 0.5% of a resident’s worldwide net worth land and coastal waters by 2030 to be
unrestored side of the State Capitol. With more than $1 billion or in excess of $500 made available to the public and pro-
the Governor and Legislature relocating million in the case of a married taxpayer vided to the Legislature by no later than
to new office spaces for the next several filing separately. June 30, 2022.
years, the first year of this move will cer- While this law may not likely affect AGC opposes public policy that arbi-
tainly disorder office visits, committee AGC members today, AGC is opposed to trarily sets aside land that otherwise could
4 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2
The 2022
aid in the development of California’s Industrial Relations that would require
infrastructure needs. employers with more than 1,000 em-
ployees in California to submit various
ǃ AB 786 (Cervantes D) California session will statistics regarding those employees to
Transportation Commission (CTC): the agency. The bill would further require
Executive Director. Current law requires likely be again the agency to collect the worker-related
the CTC to appoint an executive director statistics annually and, after collection,
for the commission who serves at the
pleasure of the Commission. This bill
hamstrung by to assign each employer to one of the 24
industries in the Global Industry Classi-
would instead require the executive di-
rector of the Commission to be appointed
the nagging fication Standard system.
This measure attempts to shoehorn all
by the Governor, subject to confirmation
by the Senate, and subject to removal at
COVID protocols industries and employers into a system
that ultimately has been designed to
and uncertainty
the discretion of the Governor. demonstrate disparity among service
AGC opposes this measure as it stands sector workers; the measure ignores
brought on by
to politicize the selection of this very im- the complexities and excellent benefits
portant position; the executive director of provided by construction jobs.
the CTC should be accountable to body
it serves and not to the Governor. the Omicron ǃ AB 1400 (Kalra D) Guaranteed Health
Care for All. Current law provides for the
ǃ AB 995 (Gonzalez D) Paid Sick Days: variant. Medi-Cal program, which is administered
Accrual and Use. Current law authorizes by the State Department of Health Care
an employer to use a different accrual Services, under which qualified low-in-
method if an employee has no less than ee at the time the employee requests come individuals receive health care ser-
24 hours of accrued sick leave or paid time family care and medical leave. The bill vices. This bill would create the California
off by the 120th calendar day of employ- would authorize an employer to limit Guaranteed Health Care for All program,
ment or each calendar year, or in each designation of a person, as prescribed. or CalCare, to provide comprehensive
12-month period. This bill would modify This measure expands employer lia- universal single-payer health care coverage
the employer’s alternate sick leave accrual bility, and as such AGC is opposed. and a health care cost control system for
method to require that an employee have the benefit of all residents of the state.
no less than 40 hours of accrued sick leave ǃ AB 1119 (Wicks D) Employment AGC is opposed to this measure as
or paid time off by the 200th calendar day Discrimination. The California Fair it unfairly burdens all construction em-
of employment or each calendar year, or Employment and Housing Act protects ployers with increased costs for health
in each 12-month period. the right to seek, obtain, and hold employ- care; this measure stands to shift costs
Paid sick leave, and other related fringe ment without discrimination because of to employers that already provide quality
benefits, are best negotiated between prescribed characteristics. This bill would health coverage.
employers and our labor partners with expand the protected characteristics to The Legislative committee will meet
whom we have master labor agreements. include family responsibilities, defined in March to discuss the progress of the
This measure would upend that process to mean the obligations of an employee bills mentioned above as well as review
with a “one sizes fit all approach.” to provide direct and ongoing care for a all the new bills introduced this year.
minor child or a care recipient. Stay tuned!
ǃ AB 1041 (Wicks D) Employment: This measure expands employer lia-
Leave. This bill would expand the popu- bility, and as such AGC is opposed.
lation that an employee can take leave to
care for to include a designated person. ǃ AB 1192 (Kalra D) Employment Infor- Felipe Fuentes
It would define “designated person” to mation: Worker Metrics. This bill would
mean a person identified by the employ- establish a program in the Department of
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 5
Increasing Black
Representation
in Construction
BY CAROL E ATON
6 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2
E
very February during Black History
Month businesses and organizations
across the U.S. embrace the chance to
spotlight the contributions and achievements
of Black Americans through the years.
While many construction companies partici-
pate in this month-long celebration of Black history,
the construction industry as a whole continues to grapple
with a critical challenge: Black workers are significantly underrepresented in the
fields of architecture, engineering and construction.
In 2020, the U.S. Bureau of Labor Statistics estimated that Blacks made up just
6 percent of the construction workforce while representing over 12 percent of the
entire labor force. This comes at a time of acute demand for skilled workers to help
deliver essential projects that will keep the U.S. competitive and growing now and
in the future.
Recognizing the need for a strong pipeline to bring more skilled workers into the
construction industry, many companies have implemented diversity, equity and
inclusion initiatives to attract and retain underrepresented groups. Over the past
year or two, it has become evident that at least some progress is being made – but
the pace is uneven, and success can be difficult to measure.
So what are AGC member companies doing to increase the hiring and amplify
the voices of Black employees? California Constructor reached out to several indi-
viduals, companies and organizations, representing all corners of the industry, to
find out what strategies they have adopted and key takeaways they can offer other
companies looking to begin the process and move the needle on this important issue.
For its part, AGC of California made a strategic move in the fall of 2020 to more fully
engage in the conversation around how to increase diversity, equity and inclusion in
construction with the launch of the AGC DEI Task Force. This team of professionals
from all sectors of the industry was charged with exploring ideas and solutions.
Their work culminated with the release of a major recommendation report in the
spring of 2021. (See the September/October 2021 California Constructor for more).
AGC DEI Steering Committee Chair ‘Dr. G’
In a follow-up to the initial efforts of the DEI Task Force, AGC launched the DEI
Steering Committee in the fall of 2021. Its focus: turn ideas and proposed solutions
into action. Dr. Giovanna Brasfield (known as Dr. G) chairs the AGC of California
DEI Steering Committee.
Formerly Vice President of Project Diversity & Inclusion for the Southwest
Division of Flatiron Corporation and now CEO and Principal of her own DEI con-
sulting firm, Brasfield & Associates, Dr. G brings extensive industry experience to
the committee. She pointed out that although there have been seminal changes in
the DEI landscape in recent years, there is still much work to be done.
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 7
“There has truly been a shift of the
perceived importance of diversity, equity,
and inclusion from a nice to have to an
essential must-have, Dr. G noted. “We
are seeing more organizations focusing
on increasing the representation of all
employees, especially Black employees,
across the industry. In the last year, we
have seen a near 300-fold increase in the
implementation of employee resource
groups (ERGs) and an increased focus
on inclusive recruitment, unconscious
bias training, and countless strategic
discussions around hiring, promoting,
and retention of Black employees.”
While 2020 was the year to say some-
thing about the need for greater inclusion Babatunde Onadele, Jr. Dr. Giovanna Brasfield
in the industry, 2021 became the year of
action. “Many organizations retained phasis on building sustainable long-term Onadele said. They initially brought their
consultants to assist with designing, im- strategic plans. The focus: What do com- concerns to company President Dan
plementing, monitoring, and measuring panies’ mission, vision, and values look Rogers, who in turn expanded the con-
programs. While other organizations like aligned with their DEI strategic vision versation to include the entire executive
tasked their ERGs to explore new ways three, five, or ten years out for improving leadership team.
to help foster more inclusive employee efforts for inclusion of African-American “The goal was to find some actionable
hiring and retention practices, especially employees within their organizations, steps to take and the fact that these were
African-American employees. Some or- including at the higher levels.” viewed as important at the top was reas-
ganizations held diversity summits, town suring. When things are taken seriously
hall meetings, and employee forums— Blach Construction PMs Driving from the top down, their importance
generally encouraging critical employee Change channels through to all the employees,”
conversations,” Dr. G contended. At Blach Construction in San Jose, project Hardy said. “You’ve got to have that
Dr. G also participated in numer- managers Babatunde Onadele, Jr. and buy-in.”
ous industry initiatives, such as RAND’s Sofia Hardy have helped propel just “It was also important to establish
Center to Advance Racial Equity Policy’s such a strategic focus on issues around metrics to measure success,” Onadele
work with the National Association of diversity, equity and inclusion over the said. “We, the Black Employee Resource
Minority Contractors – SoCal Chapter, past couple of years. What began with Group, consciously identified and out-
Procore’s Culture Academy, and beta informal, organic conversations among lined our standards of success. We did
testing Procore/AGC of California’s new- a handful of employees following the not want to form this whole initiative,
ly launched initiative, Project Engage. George Floyd incident in summer 2020 creating ambitious goals, only to then
“These and other initiatives still in the led to the creation of a new employee have the action fall flat due to a lack of
making promise to make a real impact. resource group to tackle recruitment, support from the company. We want to
Leveraging leadership and culture to retention and promotion of Black em- truly inspire change.”
increase diversity and building a true ployees at all levels of the company. One primary area of focus has been
sense of belonging can lead to overall “Obviously having the common bond shaking up Blach’s college recruiting
business success,” she added. of a similar background and being a strategies. “We’ve always had a strong re-
What’s ahead for 2022? Dr. G believes, minority within our industry and our cruiting program, now it’s time to expand
“We’re going to see intentional strategic company, we recognized that there were our prospects. There are so many qualified
planning of DEI programs with an em- things that we would like to see changed,” Black candidates who are passionate
8 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2George Hanible Meg-Anne Pryor Sofia Hardy
about engineering and have the drive to
be successful, and it is our responsibility
to seek them out and build that pipeline,” “In the last year, we have seen a near
Onadele said. “And we are. It’s one of our
strategic goals.” 300-fold increase in the implementation
of employee resource groups and an
He and Hardy joined Blach’s college
interview teams last year, adding greater
diversity to the public face of the company
as they interact with potential recruits
increased focus on inclusive recruitment,
at Cal State East Bay, Colorado State
University, San Jose State University, and
unconscious bias training, and countless
institutions throughout California. They strategic discussions around hiring,
also attended several events put on by
SJSU’s minority engineering program. promoting, and retention of Black
In addition to diversity and inclusion
in recruiting, Blach has increased its employees.” – Dr. Giovanna Brasfield
overall awareness of the need to retain
Black employees by ensuring equity and
addressing unconscious bias.
“A question I’ve raised is ‘how are we
putting [Black employees] in positions in management positions have to really As part of its strategic vision through
to be successful?’” Onadele said. “In my evaluate what they are judging employees 2025, Blach has included an ambitious
experience, after being involved on many on in terms of potential, because it can goal that 50% of Blach’s interns and
smaller projects, I was recruited for a shape a person’s career.” new hires be from diverse or minority
larger, more complex and visible project. So where are they in the process? backgrounds. “It’s gratifying to see the
This changed the trajectory of my career Progress is being made, but “this is purposeful attention put towards this
because I was challenged, championed just the beginning,” Onadele said. “It is initiative. The stepping stones are in place
and given the opportunity to showcase my important to note that there is a lot more and I’m excited to see what’s to come,”
capabilities at the highest level. People runway in front of us than behind us.” Hardy said.
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 9Focus on Inclusionary Recruitment
at Dragados
George Hanible, National Contract Com-
pliance DBE/EEO Officer for Dragados
and formerly with Skanska, has been in
the forefront of the push for progress in “We don’t just want to count
numbers. It’s getting qualified
Black representation in the industry. “I’ve
seen changes and we’ve had ups and
downs over the last 30 years,” he noted.
Moving towards a more inclusionary
people but them giving people the
recruitment process and getting away opportunities to advance in our
from the “check the box” mentality are
essential steps to building a truly diverse industry.” – George Hanible
and inclusive company in the construc-
tion industry, Hanible said.
Strategies that he has found most ef-
fective include recruiting from colleges
with a large Black population, having
someone of color on the recruiting team,
partnering with community-based orga- getting qualified people but them giving Engineers union, journeying out through
nizations like the Urban League or Black people the opportunities to advance in their apprenticeship program.
Chamber of Commerce, and even going our industry.” Pryor jumped at the opportunity to
into churches with a large Black population join OE3 a little over three years ago; she
to post information on job opportunities. OE3 Coordinator on Recruiting serves as the first female, Black appren-
Visiting schools in communities where Blacks into the Trades ticeship coordinator in the union’s history.
Dragados is working to talk about projects Some of those same recruitment strategies Her boots-on-the-ground approach to
and partnering with local youth author- have also proven successful for Meg-Anne recruitment often puts her in community
ities and foster care programs to inform Pryor, Coordinator for the California meetings well past “typical” business
underrepresented, at-risk youth about Operating Engineers Journeymen and hours or talking to at-risk minority youth
the many opportunities in construction Apprentice Training Center (OE3 JATC) in the San Francisco neighborhood in
are other effective ways to recruit Black near Sacramento. Her efforts to help boost which she grew up. She is constantly
workers. Black enrollment and representation in looking for the next recruit and is eager
“You really have to think outside the the union’s pre-apprenticeship and ap- to share the many rewarding career op-
box,” Hanible said. His advice to compa- prenticeship training programs focuses portunities construction offers.
nies looking to start the journey? “If you on outreach at every level. “A lot of people don’t know about
are a firm whose management is mostly “It’s going into the schools, doing ca- the trades or about construction, so it’s
Caucasian, it can be hard to start think- reer fairs, giving out business cards, and a real eye-opener for them to hear about
ing about how to recruit people of color. working with individuals to give them the it,” she said.
Work with organizations that can help tools” to navigate the process, she noted. Her pitch to young students: “I al-
you identify where the cache of talent is. Pryor decided to enter the construc- ways tell them if I can do it, you can do
Then put together an internal program tion industry while in college. That’s it. Don’t pigeonhole yourself by going
with an inclusionary component, and when she heard about the pre-appren- to college to get a degree and take out
make it part of your culture.” ticeship program, CityBuild, which offers $100,000 in loans that you are digging
Once Black employees are hired, it is an 18-month program that introduces yourself out of for years. You can go into
critical to ensure there is a clear path for trainees to the trades. After completing our apprenticeship program and make
advancement, Hanible added. “We don’t the program and working a brief stint as $100,000 a year and you don’t have to
just want to count numbers,” he said. “It’s a Laborer, she pivoted to the Operating pay back to anyone.”
10 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2Turn RFIs into ROI !
Research shows that contractors receive about 10 RFIs for every
$1 million spent on a project. They cost money, delay projects, and
cause legal and other risks.
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Architects:
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of eyes helps evaluate if we made it clear.”
Engineers:
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“We are often so rushed that we don’t have time to do all the quality control we would like. But we
are so close to it we probably wouldn’t see all the errors.”
Contact us for a free estimate on an independent third-party
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rawnn@verizon.netHensel Phelps completed the LAX Terminal 1.5 project
on schedule and under budget in December of 2020.
Alternative Project
Delivery Gains Ground
LAX Projects Among Others Illustrate Benefits
of More Collaborative Approaches
BY CAROL E ATON
12 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2W
hether it is largescale airport in major construction sectors. 2025 forecast period, employing various
jobs, government buildings, The report that was released in fall procurement approaches.
educational and healthcare 2021 analyzed changes in the design-build
facilities or myriad other market since a similar report in 2018. Progressive Design-Build Most
project types, owners are It projects that design-build will see a Popular
increasingly turning to alternative delivery compound annual growth rate of 7.6% In the Pacific region, progressive de-
methods to improve the speed, efficiency, over the next four years, reaching a total sign-build is the method most frequently
and the overall outcome of their capital of $400 billion by 2025. used to procure design-build projects.
building projects. Owners cited a variety of reasons for It brings the design-builder onto the
In California and throughout the Unit- selecting design-build delivery for their owner’s team even earlier in the design
ed States, the use of design-build delivery projects. Chief among them: project goals phase than traditional design-build. An-
in particular has soared in recent years to and objectives, project complexity and other key feature: the design-builder is
become the leading delivery method of innovation, and schedule. selected almost entirely on qualifications,
choice. A recent report by the Design Build The DBIA/FMI report found that according to DBIA.
Institute of America (DBIA) and FMI, the the Pacific, South Atlantic and West CM at-Risk (CMR), Integrated Project
“Design-Build Utilization Update,” found South-Central regions are expected to Delivery and Construction Manager/
that design-build will account for as much account for the largest volume of de- General Contractor (CMGC) are some
as 47% of construction spending by 2025 sign-build spending during the 2021- of the other alternative delivery methods
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 13that collectively have dwarfed the tradi-
tional design-bid-build, or “hard bid,”
“We took away project that is currently underway and
the recently completed LAX Terminal 1.5
approach to project delivery. In fact, the risk and a lot of Concourse project for Southwest Airlines.
DBIA/FMI report forecasts that the tra- These projects and others at LAX have
ditional method will make up just 15% of the challenge by employed alternative delivery methods
project spending from 2021-2025 – an 8% including CMR and design-build, which
decrease from the 2016-2020 timeframe. going design-build helped increase collaboration and cre-
Alternative delivery methods like de-
sign-build offer several clear advantages
with major trade ative problem solving.
The $344 million LAX Terminal 1.5
that set projects up for success. Most nota-
partners, including project finished on schedule and under
bly, they benefit the schedule by allowing budget in December of 2020, utilizing
construction to begin before design is for the baggage CMR with a hybrid mechanical/electrical/
complete. They also offer contractors the plumbing (MEP) design-build compo-
opportunity to be involved earlier in the handling system. nent. The project connected Terminals 1
It really helped
project and have constructability input and 2 and upgraded or added a security
during design while promoting greater checkpoint, baggage arrival and ticketing
collaboration among the entire team.
to bring the trade area. It included a large bus gate connect-
ing the domestic carrier to the airport’s
AGC Member Projects in the partners to the international terminal.
Forefront The project team overcame numerous
There are numerous examples of highly table early to sort challenges, not the least of which was
successful current and completed AGC remaining fully operational during the
member projects, spanning virtually every out the logistical entire COVID-19 pandemic. “We had
market sector, that have leveraged the
benefits of alternative delivery methods.
and construction no shutdowns on the project and we
stayed on schedule, even though every
Among them: challenges.” week there seemed to be new regulations
ǃ Otto Construction recently helped con- issued,” Brunswig said.
vert a historic power plant on the Sacramen- – Jeff Brunswig, Hensel Phelps In addition, as the only spot at LAX
to River into the SMUD Museum of Science never been built upon, the project site has
and Curiosity as part of a collaborative a critical 60-inch outfall sewer underneath
design-build effort with Dreyfuss and it that runs all the way from downtown
Blackford Architects, Buehler Structural Alternative Delivery Prevails on Los Angeles to the airport’s Hyperion
Engineers and the city of Sacramento. Major Program at LAX treatment plant. Avoiding any disruption
ǃ Clark Construction is leading the Nowhere are the benefits of alternative de- to this major utility as crews drilled pile
design and construction of San Diego livery approaches more clearly represented foundations just feet from the sewer line
State University (SDSU)’s Aztec Stadium than on a series of projects for Los Angeles proved to be a major logistical challenge.
using design-build delivery. World Airports (LAWA) and major carriers “This wasn’t a one-size-fits all ap-
ǃ Blach/Cahill is on track to complete there. Longtime AGC contractor Hensel proach,” Brunswig commented. “It re-
one of the largest transit-oriented devel- Phelps is one of several AGC member quired a collaborative effort with multiple
opments ever built in California in 2022 firms participating in the expansion and airlines and multiple stakeholders.”
under a design-build contract. renovation of key portions of Los Angeles
ǃ McCarthy Building Companies, Inc. International Airport (LAX) in preparation Partners Brought on Early
along with key design-build partners for the upcoming 2028 Olympics. Bringing the major trade partners on-
utilized progressive design-build delivery Hensel Phelps Operations Manager board in a design-build capacity early in
and OSHPD’s collaborative review process Jeff Brunswig is overseeing the company’s the design phase was another key factor
to deliver the landmark Oak Pavilion at work on the north side of the airport, in the project’s success. “We took away
MarinHealth Medical Center. including the massive Delta Skyway risk and a lot of the challenge by going
14 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2The Delta Skyway project is currently under construction
at LAX employing CM at-Risk Delivery.
design-build with major trade partners, Phelps is currently building the Delta in mind to be successful,” he commented.
including for the baggage handling sys- Skyway project under a $956 million The project team faces major logistical
tem,” Brunswig said. “It really helped to contract employing CMR delivery. The challenges accommodating up to 1,000
bring the trade partners to the table early project will connect Terminal 2 and 3 workers at peak construction on a “post-
to sort out the logistical and construction on the secure side of the airport and will age stamp” sized jobsite that is blocked
challenges.” create a secure connector from Termi- in by air traffic from three sides.
These MEP partners delivered sub- nal 3 to the International Terminal. It is Crews are working two shifts, six days a
stantial savings on the building’s exhaust being constructed in two phases; Phase week to achieve the schedule, and Hensel
systems through their early coordination 1 is slated to open in 2022 and Phase 2 Phelps is employing a host of solutions
efforts. They limited the number of shafts finishes in mid-2023. such as just-in-time deliveries scheduled
going directly through the building and The CMR delivery approach has for nighttime and use of prefabricated
offered other input that increased con- helped foster strong collaboration among MEP systems that can be dropped into
structability and overall efficiency. the entire team which is co-located to- place. Their proactive approach to early
gether on site, Brunswig noted. material procurement allowed them to
CMR Drives Collaboration “Everybody is rowing in the same avoid many of the supply chain issues
Also on the north end of LAX, Hensel direction and has to keep the same goals that have impacted other projects.
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 15Left: Keynote speaker Dr. Kristy Cane. Above: First place winners in the AGC of California 34th annual
Construction Safety Excellence Awards gathered during the Awards luncheon in Indian Wells.
Honoring Safety Excellence
Spotlight on Mental Health and
Construction Safety
Attendees heard a dynamic keynote ad-
dress from mental health expert/psychol-
AGC of California Recognizes Winners of 2021 ogist Dr. Kristy Cane, who spotlighted the
Construction Safety Excellence Awards Competition critical and timely issue of mental health
in construction. Dr. Cane highlighted how
BY CAROL E ATON
the pandemic has exacerbated mental
health issues and offered positive steps
individuals and companies can take to
A
GC of California recently recognized AGC Safety Manager Brian Mello support better mental health.
the best in safety in the California helped moderate the awards luncheon Citing various statistics showing that
construction industry with the along with 2021 Safety & Health Council the construction industry has a higher
34 th annual Construction Safety Chair Donavan Seeber, ACCO Engineered percentage of mental health and sub-
Excellence Awards (CSEA). Systems, and AGC of California 2020-21 stance use issues than other sectors,
Held in conjunction with Construct 2021 President Mike Blach. Mello pointed out and given the vital link between mental
in Indian Wells on November 11, the CSEA that the awards illustrate AGC’s commit- health and jobsite safety, Dr. Cane urged
awards drew a crowd of several hundred ment to strengthening the professional employers to take a proactive stance in
construction executives, safety professionals, standards of contractors’ safety and health addressing it directly with their workers.
AGC members and student chapter mem- efforts across California. “You need to be talking to your em-
bers to see nearly two dozen AGC firms and “Together, our members actively cre- ployees and the people that you work
individuals honored for safety excellence. ate opportunities to build and strengthen with about mental health,” she asserted.
“Safety is paramount in our industry. our state,” Mello said. “At AGC, a ‘Culture “It is really important we encourage
It allows our most important asset, our of Safety’ is a collection of beliefs and employees to understand what mental
people, to get home safely, do their es- values that are shared by owners to front- health assistance is available.”
sential work in a safe environment and line leadership focused on the safety and Following the keynote address, AGC
continue to build California. Congratu- wellbeing of all employees. All members recognized the winners of the 2021 CSEA
lations to our award winners this year of the Safety and Health Council actively Awards, which honored their strong
who exemplify this for our industry,” said drive a culture of safety across the state commitment to safe work practices over
Peter Tateishi, CEO, AGC. to better our industry.” the past year.
16 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2CSEA Main Category/ Worker Hours
Building Division
Neil Gibson Named Safety
Under 600,000 Worker Hours
1st place – BNBuilders
Professional of Year
N
2nd place – Blach Construction eil Gibson,
900,000 – 2 Million Worker Hours safety manager
1 place – Hensel Phelps
st
of Kiewit Infra-
2nd place – Clark Construction structure West Co.,
Over 3 Million Worker Hours received the AGC/
Swinerton Harry Eckstein Safety
Professional of the
Heavy, Civil and Highway Division Year award for 2021.
Under 400,000 Worker Hours The prestigious award
1st place – Nova Group is given annually to
2 place – Blois Construction
nd
someone who has devoted their career to making construction
3rd place – Teichert Energy and Utilities Group Inc. workplaces safer.
600,000 – 900,000 Worker Hours Backed by 33 years of experience in safety, Gibson’s passion
1st place – Myers & Sons Construction and commitment to safety culture have earned him the respect
2nd place – Sully-Miller of many industry peers. He has been asked on many occasions
1 Million – 2 Million Worker Hours to be a guest speaker at conferences of joint venture partners,
1st place – Kiewit Infrastructure West Co. clients, contractors, unions, the army corps, and independent
2nd place – Griffith Company groups.
At Kiewit, his responsibilities include managing, develop-
Specialty Contractor Division ing, and implementing safety programs and protocols. Gibson
Under 400,000 Worker Hours facilitates an on-site culture of continuous safety awareness using
1st place – L.K. Comstock National Transit weekly toolbox meetings and hazard analysis activities. He pro-
2 place – Foundation Constructors, Inc.
nd
vides safety oversight for work plans, prepares crisis management
500,000 – 900,000 Worker Hours plans, and promotes coordination between project management
1 place – A-C Electric Company
st
and owner safety management staff.
2nd place – Marina Landscape, Inc. Gibson oversees and supports all the Kiewit projects in the
Over 4 Million Worker Hours Southern California and Northern California Districts. He has
1st place – ACCO Engineered Systems supervised millions of man-hours over the last several years and
2 place – BrightView Landscape Development
nd
billions of dollars’ worth of construction. He hosts a web-based
safety training for all employees about current issues, specific
topics and enforces Kiewit’s philosophy “Nobody Gets Hurt.”
CSEA Specialized Awards Additionally, he helped develop and implement a leading-indicator
program for Kiewit where each project identifies and pinpoints
Harry Eckstein Safety Professional of the Year common practices that may lead to future injuries.
Neil Gibson, Kiewit Infrastructure West Co. In nominating him for the award, Kiewit Infrastructure West
Senior Vice President Matt Scott commented, “What drives Neil
Individual Safety Effort of a Project Superintendent every day is putting processes and procedures in place to make
Adam McNutt, Kiewit Infrastructure West Co. sure everyone goes home safely when their shift ends, and then
reinforcing those processes and procedures with everyone from
Safety on a High Hazard Project management to craft. He has never wavered from his commitment
Skanska USA Civil West, “State Route 60 Truck to keeping safety simple and ensuring that Nobody Gets Hurt!”
Lanes Project”
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 17Challenging State Route 60 Job Wins High Hazard Award
A
stretch of winding highway through an
arid mountain pass in an area of River-
side County known as the “badlands”
was the location for a highly challenging,
$96 million road widening project under-
taken by Skanska USA Civil West.
The project team overcame unique
challenges to safely complete the 4.5-
mile State Route 60 Truck Lanes project,
earning it the AGC Construction Safety
Excellence Award for Safety on a High
Hazard job.
The challenges were substantial. They
included: workers using rope access and
climbing techniques to access the steep
slopes, alongside a specialized spider
excavator; operators challenged with
accessing shoring systems deep inside a
ravine; and mitigating the risk of rattle-
snakes daily, to name just a few.
As part of the contract, Skanska con- ching goal of the project was to improve and dump on the east bound side, the
structed truck climbing and descending safety and access for public motorists. project superintendent suggested installing
lanes, widened shoulders to standards Skanska matched the project’s many conveyor belts in the existing culverts that
widths and established two large wildlife challenges with an intense focus on passed under the road. This allowed for dirt
crossings among other things. safety. The team consistently innovated to be loaded directly onto the conveyor and
The area surrounding the project is an and planned every detail to protect their then loaded out on the opposite side.
unforgiving landscape, with little to no ex- workers and the traveling public. Their The solution eliminated almost 40,000
ternal access to the route. The route itself approach to safety encompassed four truck trips on the public roadway, greatly
consists of two lanes in each direction, main categories: planning, protection, reducing public and worker exposure.
with no inside or outside shoulders. The communication, and controlling change.
pass is carved through steep slopes and Protection
deep valleys. In several areas, the slopes Planning Traffic accidents continue to be the #1
extend 200 feet vertically, directly from With the project broken into six stages, cause of worker deaths in California and
the roadway, while on the opposite side, planning often required in-depth review of are a grave danger to construction work-
there is a 100-foot-deep ravine. constructing temporary pavement sections, ers on highways.
With no shoulders and no easily traffic switches, access to the site for work- The team committed early on to provid-
accessible alternate routes, State Route ers, haul trucks, and pavement operations. ing 100% positive protection to workers.
60 through the Badlands has one of the Just one example of this planning The only time work would be performed
highest fatality pictures in the state. When success: during a review of a haul route in within the traffic lanes would be under
serious accidents occur, access for emer- which trucks would need to be loaded on the few full closure windows that were
gency responders is extremely difficult, the west bound side and then travel about allowed. All other work would happen
creating major traffic issues. An overar- six miles through the job to turn around behind positive barriers such as K-rail.
18 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2Communication
Communicating the risk and the plan to
the field crews was critical. The entire
job met each day to address haul routes,
concrete pours, current or changing ac-
cess, near misses, or areas for concern.
Skanska’s safety program follows
a strict plan, do, check, act cycle. This Kiewit Superintendent Recognized
A
encouraged project leadership to be s super- safety and gaining a greater under-
in the field every day making sure intendent standing of what motivates them. He
the construction work plans were at Kiewit works to connect and build relation-
understood and that new risks were Infrastructure ships with workers to create trust and
communicated and quickly corrected. West Co. for an investment in one another.
Strong communication was also over 14 years, Just one example of this critical
maintained with all project stakehold- Adam McNutt relationship building was on the Hell Hole
ers. The California Highway Patrol and has managed Dam Core Raise project (pictured above),
other surrounding response agencies numerous complicated and hazardous which is located in a very remote, moun-
were regularly kept abreast of current projects including the Crane Valley Dam tainous area with one road in and out
project concerns. Seismic Retrofit, Southeast Connector to the nearest town, Foresthill. Getting
Phase 1, Folsom Dam Auxiliary Spillway to the town can be a 2-hour trip on the
Controlling Change Phase 4, and Hell Hole Dam Core Raise. steep, winding road. The remote location
The focus on controlling change was AGC recognized McNutt with its required that the crew live on-site and
a differentiator on this project. With 2021 CSEA Award for individual safety all their food and supplies be brought in.
several phases, constant unforeseen effort of a project superintendent. Everything had to be carefully accounted
conditions, and an overwhelming McNutt views every project through for or time and money would be lost.
scope, the team repeatedly was able to the lens of safety as soon as Kiewit is Proactive communication between the
identify changes and correct course. awarded the job. He starts by reviewing team was extremely important.
When large sections of 200-ft. tall the details of the project and making a Fire danger, wildlife danger, dam
slopes would fail and threaten the list of Life Changing Categories (LCC) crest excavation and COVID-19 were
public and workers, the team imme- and areas of the project where these just some of the major hazards the team
diately worked to remedy the situa- incidents can occur. faced. The job was performed with zero
tion. In one case specialized “spider” From there, he works with the team safety incidents throughout the entire
excavators were used to crawl up to engineer the risk away or if that can’t job. Building relationships with the entire
45-degree slopes to access otherwise be done, develops a Prevention and team was critical to the success of this
unreachable damage. Reduction plan. Once the project is project. McNutt was able to create a
When trucks could not drive to places ready to begin the workforce and staff culture where everyone had a stake in
workers needed to access, rope access are trained on the selected categories their safety but the safety of others and
and rock-climbing techniques were used and safety processes. the quality of the project.
to secure workers to the slope faces. His focus on creating a culture of As Kiewit Infrastructure West’s
By understanding the risks and safety strives to make safety real for Northern California Area Manager,
the hazards and identifying needed each person on the job. At the start Todd Orbus, put it, “Adam has a unique
change, Skanska achieved a high de- of each job, he asks craft to take time ability to build a highly motivated team
gree of success on this project – com- to write down their top three safety to tackle complex and remote projects.
pleting two years and half- a-million hazards as well as what is important to Safety, quality, and client satisfaction
worker hours without a single incident. them – getting workers thinking about are his highest priority.”
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 192021 to the second quarter, the federal
Bureau of Economic Analysis reported
on October 1. That put California among
the six fastest-growing state economies,
considerably ahead of the U.S. growth
rate of 6.7%.
Infrastructure Funding Boom
The enactment of the federal Infrastruc-
ture Investment and Jobs Act will add
huge amounts to funding over the next
several years for highways, transit, inter-
city rail, water infrastructure, renewable
energy, broadband, and other types of
construction. For many of these cate-
gories, the timing and allocation among
states and projects won’t be known for
several months at least. But the large
boost in federal funds for highways and
bridges should start flowing soon, since
Review and Forecast: the money will be routed according to set
formulas through existing programs and
Construction Prospects Brighten, agencies, namely the Federal Highway
Administration and Caltrans.
But Coronavirus Clouds Linger Apart from federal dollars, California’s
BY K EN SIMONSON, AGC OF AMERICA CHIEF ECONOMIST fiscal position continues to benefit from
rapid growth of capital gains and other
income tax receipts associated with the
strong rise in housing and stock prices.
C
Prices of existing houses sold between the
alifornia contractors have reason ruary to April 2020, slightly less steeply second quarter of 2020 and the second
to be optimistic about the volume than the 19% fall in California. Construc- quarter of 2021 appreciated by an aver-
of projects in 2022. But pandem- tion employment in October 2021 both age of 20% in California, exceeding the
ic-related problems may cause selective nationwide and in California was down national average of 17%. That increase
setbacks. about 2% from February 2020, indicating supports spending by sellers, adds to
Construction employment rebounded that the industry was recovering more local and state government receipts,
well in 2021 from the disastrous downturn robustly in the state than nationally from and encourages additional single- and
at the beginning of the pandemic. From their respective low points. (See the ac- multifamily homebuilding.
February to April 2020, the industry shed companying chart on page 21.) Private nonresidential construction
nearly one out of five construction jobs in The recovery should continue and also is poised to expand. The unprece-
the state – a total of 175,000. But payrolls probably gather steam in 2021. “Real dented congestion at the ports of Long
swelled to 892,000, seasonally adjusted, GDP” or inflation-adjusted gross do- Beach and Los Angeles should lead to
by October 2021, bringing employment mestic product – “econospeak” for the more construction at the ports and around
back within 21,000 jobs or 2.3% of the value of all goods and services produced overloaded warehouses in the Inland
pre-pandemic peak in February 2020. in a state, net of imports – increased at Empire and elsewhere in the state. The
By comparison, U.S. construction an 8.1% seasonally adjusted annual rate seemingly never-ending drought and
employment declined by 15% from Feb- in California from the first quarter of accompanying wildfires are leading to
20 CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2greater investment in conservation, re-
siliency, replacement structures, and U.S. and California Construction Employment
renewable energy. Data center demand Cumulative change,U.S.
Feb&2020-Oct 2021, seasonally
California Construction adjusted
Employment
U.S. & California
Cumulative change, FebConstruction Employment
2020-Oct 2021, seasonally adjusted
shows every sign of continuing to be a Cumulative change, Feb 2020-Oct 2021, seasonally adjusted % change
%Feb
change
2020-
hot market. And healthcare construc- Feb
Oct2020-
2021:
tion spending is likely to likely to pick 5% Oct 2021:
5%
up in 2022. 0%
0% US -2.0%
US
CA -2.0%
-2.3%
CA -2.3%
Dimmer Outlook for Some Sectors -5%
-5%
Not all categories have a bright outlook, -10%
-10%
however. Segments with dimmer or less
certain prospects include hotels and -15%
-15%
other travel-related businesses such as -20%
-20%2/20 4/20 6/20 8/20 10/20 12/20 2/21 4/21 6/21 8/21 10/21
resorts and theme parks. Office construc- 2/20 4/20 6/20 8/20 10/20 12/20 2/21 4/21 6/21 8/21 10/21
tion is likely to remain concentrated in Source: Bureau of Labor Statistics
Source: Bureau of Labor Statistics
remodeling and repurposing of existing
structures, rather than new construction. and set records for six months in a row, in erated the net loss of population that
Colleges and universities will not a series that dates back to the end of 2000. California first experienced in 2020. The
be robust markets unless enrollments Census Bureau reported in December
increase, which will depend in part on The Workforce Challenge 2020 that the state lost population be-
the ability and willingness of foreign A number of factors suggest the challenge tween July 1, 2019 and July 1, 2020 for the
students to return. Retail construction of filling construction jobs may get even first time since the agency first calculated
is likely to remain lackluster, apart from harder in 2022. annual state population in 1900. Since
restaurants and conversion of shuttered First, an ongoing survey of Facebook mid-2020 the number of deaths increased
stores into new retail, local (“last mile”) users conducted by the Delphi Group from previous years, the number of births
distribution, or other uses. at Carnegie Mellon University has con- dropped further, and net immigration
Finding enough worker is likely to be sistently found that only 53% of respon- remained severely depressed. California
the #1 challenge for most contractors in dents who identify their occupation as is likely to have experienced each of these
2022. In a survey that AGC of America construction reported having received trends, as well as a continued exodus to
conducted last summer and released on coronavirus vaccination rate, far below other states, meaning that its population,
September 2, 86% of the 86 respondents the 81% rate for other occupations, as of including working-age population, is now
who listed California as their princi- the last week of October. Conversely, over shrinking more rapidly.
pal state of operations reported having 40% of construction respondents--more In summary, the economy nationally
open positions for hourly craft workers. than double the share for other occupa- and in California appears to be bouncing
That was close to the 90% of respon- tions--reported being “vaccine hesitant.” back from the devastation caused by the
dents nationally with such openings. Because coronavirus cases severe pandemic. But there remain both linger-
Three-quarters of the California contrac- enough to require hospitalization are ing problems and the risk of renewed
tors had openings for salaried positions, occurring almost exclusively among setbacks. Contractors can expect to share
considerably above the 62% nationally unvaccinated individuals, any further in the expansion, if they can hire enough
who reported salaried position openings. spike in cases is likely to hit construction workers and keep them healthy.
Competition for workers has steadily workers harder than other occupations.
intensified among all industries in the Furthermore, mandates from government
state. The Bureau of Labor Statistics re- or private owners that anyone entering
ported on November 12 that there were their premises be vaccinated will make
1,155,000 job openings in California at the it harder for contractors to field healthy, Ken Simonson
end of September. Seasonally adjusted qualified crews.
openings had risen every month in 2021 The pandemic may also have accel-
CALIFORNIA CONSTRUCTOR
J A N UA R Y/ F E B R UA R Y 2 0 2 2 21You can also read
