contfall05.qxd 9/23/05 11:42 am page 1 · kokhanok runway resurfacing/lighting $42,229,129.21 ......

ContFALL05.qxd 9/23/05 11:42 AM

ContFALL05.qxd 9/23/05 11:42 AM Page 1

Fall 2005 The Alaska CONTRACTOR | 3

Associated GeneralContractors of Alaska

8005 Schoon St.Anchorage, AK 99518

(907) 561-5354Fax: (907) 562-6118

www.agcak.org

Editorial BoardSandra BartorilloDick CattanachMargaret Empie

Margie GoodmanMary Killorin

Vicki SchneibelLyn Whitley

8537 Corbin Dr.Anchorage, AK 99507

(907) 562-9300Fax: (907) 562-9311

Toll Free: 866-562-9300www.aqppublishing.com

PublisherRobert R. Ulin

EditorSusan Harrington

Art DirectorKaren Copley

Production ManagerChristopher Shock

Project Sales ManagerClem E. Mewmaw

The Alaska

F A L L 2 0 0 5The Official Publication of the Associated General Contractors of Alaska

FEATURES

24 Design-Build Construction by Patricia Liles

32 Emerging Trends in the Alaska construction market by Jim Fergusson

38 Southeast Contractors by Larry Persily

48 Military construction in Alaska by Patricia Liles

54 Seismic upgrades in works for airport by Amy M. Armstrong

64 UAA trains industry professionals by Susan Harrington

MEMBER PROFILES

12 Alcan General

16 Arctic Striping Inc.

20 N C Machinery Co.

DEPARTMENTS

4 Winning Bids

5 Construction Activity

6 President’s Message by Terry Fike

8 Executive Director’s Message by Dick Cattanach

10 Work Safe by Matthew Fagnani

14 Safety Report by Chris Ross

18 Contractors & the Law by Robert J. Dickson

22 Education Report by Vicki Schneibel

36 Banking & Contractors by Valerie Bale

46 Pacific Legal Foundation by James S. Burling

74 2005 AGC of Alaska Annual Conference

T A B L E O F C O N T E N T S

COVER PHOTOS: © BRIAN R. ELLIOT

COURTESY OF CONSTRUCTION MACHINERY

INDUSTRIAL L.L.C.

TOP: THE JOINT TASK FORCE ALASKA MILITARY

ROAD PROJECT IS A ROAD-BUILDING TRAINING

EXERCISE, WHICH WILL RESULT IN A 20-PLUS-MILE

ACCESS ROAD SERVING METLAKATLA, ALASKA, ON

ANNETTE ISLAND.

LOWER LEFT: SECON INC. BLADES A FINISH GRADE

IN PREPARATION FOR RE-PAVING THE NORTH

TONGASS HIGHWAY IN KETCHIKAN, ALASKA.

RIGHT: SOUTHEAST ENGINEERING INC. LAYS PIPE

BEDDING FOR WATER AND SEWER UPGRADES ON

BRYANT STREET IN KETCHIKAN, ALASKA.

COVER DESIGN: KAREN COPLEY


4 | The Alaska CONTRACTOR Fall 2005

ARCTIC & WESTERN

FALSE PASS HARBOR IMPROVEMENTS$19,729,300.00Kelly Ryan Inc.

KOTZEBUE AIRPORT EASTSIDEOBSTRUCTION/SAFETY AREA

$11,715,845.00QAP

ST GEORGE AIRPORT PAVING$9,397,230.00

Knik Construction Inc.

ANVIK AIRPORT IMPROVEMENTS$7,998,507.25

International Bridge Corporation

SAND POINT RUNWAY REHAB/RSAEXT STG 3

$5,187,925.00QAP

KOTZEBUE 2005 WATER SYSTEMIMPROVEMENTS

$3,871,023.00KIC Development, L.L.C.

NOATAK KUUTCHAURAQ SUBDIVISIONWATER/SEWER MAIN

$1,651,000.00KIC Development, L.L.C.

HOOPER BAY AIRPORT/ACCESS RD REPAIRS

$1,534,945.00Knik Construction Inc.

ST MARYS AIRPORT RD/PITKAS POINT RD$1,523,546.00

Brice Inc.

SOUTHEAST

SITKA HIGH SCHOOL AUDITORIUM$11,589,000.00

Dawson Construction

PETERSBURG SOUTH MITKOF FERRY TERMINAL

$10,213,548.80Western Marine Construction

KETCHIKAN TONGASS AVE RESURFACING$4,728,640.00Bicknell, Inc.

SOUTHCENTRAL

KOKHANOK RUNWAYRESURFACING/LIGHTING

$42,229,129.21Tamsher Construction

ANCH ABBOTT LP EXTENSION/ANCHLOOP WTM PHS IV

$38,417,818.00Wilder Construction Company

KENAI EMERGENCY RESPONSE CENTER$32,349,003.00

G & S Construction Inc.

ANCH PORT NORTH BACKLANDS EXPANSION

$17,999,043.30Alaska Interstate Construction L.L.C.

FT RICHARDSON DIGITALMULTIPURPOSE TRAINING RANGE

$12,659,000.00Cornerstone Construction

PALMER SOUTHWEST UTILITY SYSTEMEXPANSION

$10,337,375.00IBC/Nippon Hodo

MAT-SU NUTRITION SERVICES FACILITY$10,206,177.00

Jannsen Contracting

ANCH PACKING/CRATING/CONTAINERIZATION

$10,130,930.90Trans-World Moving Systems Inc.

ANCH NORTHERN LIGHTS UPGRADE/AERO AVE RECONSTRUCTION

$7,118,847.00QAP

ANCH AIA SOUTH AIRPARK TAXIWAY$4,749,873.00

QAP

TALKEETNA ARRC CURRY QUARRYDEVELOPMENT

$4,647,500.00Brice Inc.

ANCH AIA REMOTE FUELING APRON LOI 1PHS 1

$4,218,115.00Wilder Construction Company

PALMER PIONEERS HOME TO STATE VETERANS HOME

$3,223,350.00Denali General Contractors

AK WATER LEVEL STATIONS MODERNIZATION

$2,624,100.00David Evans & Associates

AK NSB AREAWIDE TANK/COATINGREPAIR

$1,895,000.00SKW Eskimos Inc.

ANCH PZ 411 WATER INTERTIE$1,782,752.00

North Star Paving & Construction

KENAI SPUR RD MP 3-8 REPAVING$1,665,978.00

Alaska Roadbuilders

ANCH 3RD AVE SURFACE REHABILITATION

$1,640,739.50Pruhs Corporation

ANCH ELECTRICAL$1,500,767.20

Yukon Electric Inc.



INTERIOR

DALTON HWY MP 37 TO MP 49$15,487,154.00

Alaska Interstate Construction L.L.C.

PARKS HWY MP 204 SUMMIT RAILROADOVERCROSSING

$6,179,254.80Great Northwest/SKW J.V.

STEVENS VILLAGE AIRPORT RELOCATIONPHS II

$5,201,642.50Brice Inc.

TOK CUTOFF EARTHQUAKE REPAIRS$2,351,805.00

Pruhs Corporation

FT WAINWRIGHT VEHICLE STORAGE$1,885,702.00

SWR Inc.

EIELSON TURBINE GENERATOR 3 MAINTENANCE$1,732,715.00

Turbo Mechanical Inc.

FBKS US CREEK ROAD UPGRADE$1,687,555.00

H C Contractors Inc.

SOUTHEAST

KETCHIKAN PORT IMPROVEMENTS PHS I$3,801,650.00

West Construction

JUNEAU M/V TUSTUMENA ENGINEERINGEQUIP UPGRADES/OVERHAUL

$3,545,856.20Fairhaven Shipyard

SITKA SCHOOLS ROOF REPLACEMENT$2,988,000.00

Coogan Construction

JUNEAU 2005 AREA WIDE PAVING/TWINLAKES DR

$2,351,805.00Secon Inc.

SITKA NEW CUTTER SUPPORT TEAM BUILDING

$1,674,000.00McGraw Custom Construction



PRESIDENT’S MESSAGE

While participating in the initial design consultationwith the Anchorage Museum Building Committee,the subject of the LEED Green Building Rating

System arose. Although LEED is a voluntary standard, whenowners require certification LEED is not voluntary for thecontractor. As it appears that trend is towards more buildingmarkets moving towards obtaining LEED certification, it isessential that a contractor become familiar with the standard.

The Leadership in Energy and Environmental Design(LEED) Green Building Rating Systemis an entity designed to establish acommon standard of measurementfor green buildings. The U.S. GreenBuilding Council (USGBC) estab-lished LEED in 1999 and maintains alist of registered projects, with over100 projects certified.

CatagoriesThe LEED system rates projects

under five categories: • Sustainable Sites• Water Efficiency• Energy & Atmosphere• Materials & Resources• Indoor Environmental Quality• Innovation & Design Process

Detailed information is available on the council’s Web site atwww.usgbc.org/Docs/LEEDdocs/LEED_RS_v2-1.pdf.

BenefitsWhy should anyone be interested in obtaining LEED cer-

tification? Well, for one thing, the new Energy Bill includes30-percent tax credits for a commercial building using fuelcells, photovoltaics and solar thermal. In addition, energyefficient credits at $1.80 per square foot are available (com-mercial buildings for heating, cooling, lighting systems andbuilding envelope). Designing a new facility to meet LEEDvirtually guarantees the owner would be eligible for the newtax credits.

Other benefits include: • Environmental–reduce the impacts of natural resource

consumption

• Economic–improve the bottom line• Health & Safety–enhance occupant comfort and

health• Community–minimize strain on local infrastructures

and improve quality of life

Alaska’s LEED certified facilityAt the present time, the only facility in Alaska that is LEED

certified is the one-story, 6,690-square-foot West Coast &Alaska Tsunami Warning Center inPalmer. By using landscape materialsthat do not require irrigation, andmaking plumbing changes withinthe building, water usage wasreduced by 30 percent. The designenabled the building to achieve 28percent energy efficiency overASHRAE 90.1-1999; and includescarbon dioxide monitoring andinstallation of low-emitting adhe-sives, sealants, and paints. Utilizing aconstruction waste managementplan, over 82 percent of materialswere diverted from the landfill.

AGC InvolvementKnowledge of how LEED relates to a given project and

detailed specifications save valuable construction time anddollars. AGC of America discussed LEED requirements withUSGBC LEED Program Manager Brendan Owens and threeAGC member companies in late January 2004. One of theissues raised was the need for contractors to be more active inthe planning process when LEED certification is desired. Thecontractor also needs to be aware of the special provisions foreach credit as these provisions may not be in the specifications.Also, contractors should have contract language in place forsubcontractors so that the subcontractors are aware of what isexpected of them. Further information on AGC of America’sinvolvement with the LEED standard can be obtained atwww.agc.org/page.ww?section=Green+Construction&name=LEED+Green+Building+Rating+System.

PartnershipsIdeally a quasi-partnership among architect/engineer and

Designing in AlaskaUnderstanding the LEED standard TERRY FIKE

President

The new Energy Billincludes 30-percent taxcredits for a commercialbuilding using fuel cells,photovoltaics and solarthermal. In addition, energyefficient credits at $1.80 persquare foot are available...



contractor under a design/build scenario is the best way toimplement LEED standards. Unfortunately, if the project iscompetitively bid, then the lowest bidder may not have anyexperience in implementing LEED standards and there is nomechanism in place to require the contractor or subcontrac-tors to have LEED credentials or history of performance onLEED projects.

Extra costsAnother difficulty in bidding

a LEED-compliant project is thatfew contractors are familiar withadministrative costs involved inthe reporting requirements. Thiscost is usually either notaccounted for in the estimate, ora plug number is just tossed intothe hopper. If LEED require-ments are listed in Division 1 ofthe specifications, odds are thatsubcontractors will be even lessaware of the extra effort involvedin meeting the requirements.

Len Harding, CDT, wrote inthe July 2005 The Construction Specifier, “Contractors are oftenfaulted for indifference to LEED issues, which is quite erro-neous. Contractors make their living constructing buildingsper drawings and specifications at the lowest cost they can

manage, and not by conducting research on new, environ-mentally friendly products and methods.” (Read Harding’sarticle, Specifying LEED Under Public Bid Rules,www.csinet.org/s_csi/docs/11200/11119.pdf.)

Specifying LEED complianceIf LEED-compliant products and methods of construction

are clearly spelled out in the specifications and drawings, thenany competent contractor or subcontractor will be able to

accurately bid the job. It is up to theA/E and owner to ensure before bidday that contractors/subcontractorshave an understanding of thespecifics of meeting LEED stan-dards. This could be accomplishedduring a mandatory pre-bid meet-ing, inserting verbiage into theSupplementary Conditions indicat-ing the project requires a specificLEED rating, and specifying onlyproducts or equipment that wouldmeet the LEED standard.

With more and more of thebuilding industry going “green,” don’t get caught unprepared.Take some time and learn a little bit more about the LEEDstandard—it seems this program is heading our way.

It is up to the A/E and ownerto ensure before bid day thatcontractors/subcontractors havean understanding of the specificsof meeting LEED standards.



DICK CATTANACH

Executive Director

Construction Career AcademyOne strategy to meet our labor shortage

Recent reports have indicated that for the next decade,the construction industry will need to add more that1,000 new workers to the construction labor force to

meet projected job growth, address retirements and replacenonresidents.

Worker sourcesThe issue Alaskan construction and political leaders face is

identifying the source of those workers. Consider for example:

• Migration to Alaska has been relatively flat since 1990.Therefore, the thought that we should import our labor needs does not meet the reality of the immediate past nor is such a strategy supported by the administration’s theme of Alaskan jobs for Alaskan workers.

• Unemployment rates in the urban areas of Anchorage,Fairbanks and Juneau mirror that of the nation as a whole.Therefore, labor needs cannot look to the unem-ployed in urban Alaska for relief, although the higher unemployment rates in rural Alaskans suggest that rural Alaskans will be part of any long-term solution.

• High school graduation was been relatively constant at approximately 7,000 graduates per year. The U.S.Department of Education estimates that 30 percent of those graduates will immediately seek post-secondary education of some nature. In other words, approximate-ly 4,900 secondary school graduates will enter the Alaska workforce in a given year.

• Construction is traditionally a male-dominated profes-sion. In a 2003 publication, the Alaska Department of Labor reported that 12 percent of the construction labor force was female.

Attracting graduatesGiven the foregoing information, it appears that construc-

tion will need to attract more than one in five Alaskan highschool graduates in order to meet its near-term labor needs. Ifthe gender bias of the industry continues at the same level asthe past, then the industry needs to capture almost 30 percentof the male graduates. Currently, however, construction rep-resents just 5.7 percent of the Alaska workforce, so it needs toattract almost four times its presence in the labor force just tomeet nominal growth rates.

Preparing graduatesWhile it appears rural Alaskans and high school graduates

will need to provide the construction’s workforce of tomor-row, it is obvious that graduates are not entering the labormarket as prepared as their fellow graduates of the past.Almost gone are the shop classes so prevalent in the educa-tional preparation of earlier generations. For a variety of rea-sons, schools have moved away from the vocational trainingprograms of the past, leaving many students ill-prepared fortoday’s world of work.

It is sad to acknowledge that with few exceptions, Alaskansecondary schools are neither prepared nor capable ofaddressing the needs of the construction industry.Consequently the industry must look elsewhere for trainingfor its workforce.

Training graduatesOne possible solution may be for the State of Alaska to

establish a post-secondary Construction Career Academy inboth Anchorage and Fairbanks. The goal of these academieswould be to provide basic training in the construction crafts tointerested students. Classroom instruction would be supple-mented with actual paid job experience so the students couldearn while they learn.

Potential employers for these students would be residen-tial contractors, merit shop contractors, unions, governmentalagencies, nonprofit organizations and others that needtrained construction workers.

For too long, Alaskan leaders have looked at education asan expense not an investment in our future. Hence, construc-tion training has been relegated to the category of “nice butnot necessary” when administrators struggle with the ever-present problem of “too few resources to meet too manyneeds.”

While this attitude is understandable, it merely transfers,not eliminates, the training need. In this case, the trainingresponsibility is transferred to the construction industry. Theindustry currently spends an estimated $10 million on basictraining for workers, but has neither the resources nor thecapabilities to train 1,000 workers a year.The educational sys-tem needs to assume the responsibility that has been tradi-tionally theirs, and work with the construction industry todevelop a strategy to meet this need. A Construction CareerAcademy may be a key element of such a strategy.

EXECUTIVE DIRECTOR’S MESSAGE



As an employer with a drug testing program, having a plan for dealingwith positive tests is part of your policy. Some employers choose to ter-minate and others offer rehabilitation. Either way, the Department of

Transportation requires that before an employee returns to work following a posi-tive test for any DOT employer, they must seek treatment. Who performs thattreatment?

Health care and mental health professionals who cater to the treatment of sub-stance abuse disorders. By title they are a substance abuse professional; they aremore commonly known by the acronym SAP. These professionals have beeninvolved in assisting employers and employees for decades. SAPs provide animportant resource for employees who need help.

The substance abuseprofessional is a person whoevaluates employees whohave violated DOT drug andalcohol testing regulationsand non-DOT drug andalcohol company policies.The SAP follows the regula-tions and applicable lawsand makes recommenda-tions concerning education,treatment, follow-up testingand aftercare treatment.

The acronym SAPbecame a common workplace term through the promulgation of DOT drug test-ing rules. Within DOT regulations the department defines a SAP as a person withone of the following credentials:

A licensed physician (Medical Doctor or Doctor of Osteopathy)A licensed or certified social workerA licensed or certified psychologistA licensed or certified employee assistance professionalA drug and alcohol counselor certified by the National Association of

Alcoholism and Drug Abuse Counselors Certification Commission(NAADAC), or by the International Certification ReciprocityConsortium/Alcohol and Other Drug Abuse (ICRC), or by the NationalBoard for Certified Counselors Inc. and Affiliates/Master AddictionsCounselor (NBCC)

In addition to having the proper certification to be a SAP for DOT, the SAPmust be knowledgeable in the DOT SAP guidelines 49 CFR Part 40 and DOTagency drug and alcohol testing rules.

The SAP role is neither an advocate for the employer or the employee. Theirfunction is to protect the public interest in safety by professionally evaluating theemployee and recommending appropriate education and/or treatment, follow-uptests and aftercare.

Industry trends have established DOT standards as the gold standard for com-panies that are not regulated by DOT, just another indication how valuable SAPsand their skill sets have become in the marketplace.

Matthew Fagnani is president of WorkSafe. Portions of this article came from the U. S. Office of Drug & Alcohol Policy & Compliance

W O R K S A F EA substance abuse professional isyour line of defense

Health care and mentalhealth professionals who caterto the treatment of substanceabuse disorders. By title they area substance abuse professional;they are more commonly knownby the acronym SAP.

By MATTHEW FAGNANI,President, WorkSafe

When Regulations Meetthe Real World

The Office of Drug & Alcohol Policy& Compliance within the Departmentof Transportation (DOT) recently post-ed clarification on SAP Reports. This isan appropriate review especially for theconstruction industry where seasonalhires are commonplace.

THE PROBLEM: The SubstanceAbuse Professional (SAP) learns theemployee is no longer employed dur-ing the initial substance abuse evalua-tion. The SAP completes theevaluation and provides appropriaterecommendations. The problem iswhat does the SAP do with the evalu-ation report for an employee who isno longer employed? After all, there isno company to send the report to.

THE FIX: The written report canbe provided directly to the employee ifthe employee does not have a currentemployer. The SAP may also providethe report to the future transportationemployer.

But what about the employee whocompletes the recommendations inthe initial report and has a follow-upevaluation? Can the SAP provide theemployee the follow-up evaluationand report?

Yes, the SAP can provide the writ-ten report directly to the employeebut only if the SAP edits out the fol-low-up testing information. Once theemployee is hired for a safety-sensi-tive position, the SAP can then releasethe report to the new transportationemployer including the follow-uptesting information.

Source: U.S Department of Transportation, Officeof the Secretary, Office of Drug & Alcohol Policy &Compliance, ODAPC Dispatches, June 24, 2005www.dot.gov/ost/dape/guidelines/20050624.doc



hen Anchorage general contractor TerryFike, owner of Alcan General, was asked tojoin the Associated General Contractors of

Alaska six years ago, he hesitated because of the cost.Ultimately though, he joined—a decision he hasn’tregretted. As an active participant in AGC of Alaska,Fike is giving something back to the industry he sayshas supported him and his family for his entire life.He’s spent the last year as president of the Alaskachapter and said it’s been a great year—challengingand very rewarding.

As president, Fike has logged more than 46,000 airmiles attending conferences and meeting with indus-try peers. During discussions with contractors fromacross the country,he’s learned the trou-bles facing Alaska’sconstruction industry,other than climate andlogistic difficulties, arenot unique. “Problemswith manpower andfairness in contractsare nationwide;they’re not just isolat-ed to Alaska,” Fikesaid. “The aging laborforce and the need fora drug-free workforceare big issues—theseare problems facing allcontractors in ournation, not just here.”

Locally, Fike hasbenefited from hisactive participation inAGC. He now inter-acts more with hispeers and has gaineda great deal of respectfor his competitors and the amount of talent andknowledge in the construction industry in Alaska.“The networking capabilities of AGC—getting toknow the other general contractors in the state andbeing able to exchange information on subs perform-ance-wise—is probably one of the greater benefits ofAGC membership,” Fike said.

Becoming involved by serving on a committee,task force or board gives contractors an opportunity toadvance new ideas and suggest improvements in acollaborative environment. “Being a member of theexecutive board and setting a course for AGC, I thinkthat’s a benefit as AGC’s main goal is to enhance ourindustry and make it better for not only the contrac-tors, but also the owners we work for.”

The majority of the owners Alcan General worksfor are in the public sector. The company, founded in1994, has grown from a small general contractor to amid-size firm with year-round work in design-bid-build and design-build. Alcan has a backlog ofbetween $50 million and $80 million in annual proj-ects. “Our philosophy is to have an owner that reallywants us back,” Fike said. “We bid a reasonable pricewith a reasonable margin and negotiate all issues withthe owner.”

Alcan has built a number of schools, many for theAnchorage School District, with Dimond High Schooland the Wendler renovation as key projects. In addi-tion, they’ve constructed the Teeland Middle School

for the Matanuska-SusitnaBorough, and the West ValleyHigh School and HutchisonCareer Center renovations for theFairbanks North Star Borough.High profile projects such as theRabinowitz Courthouse andPolice Station for the City ofFairbanks and the Joint MobilityComplex on Eielson AFB roundout their public work projects.

“We are a public contractorand have only done one privateproject in 12 years, which we’reactually doing now, and that isthe renovation of the existingseafood plant for the new owner,Anchorage Community Develop-ment, L.L.C. (Changepoint

Church),” Fike said. “We’re very selective and try topick the owners we want to work for, and that hashelped us be successful.”

One of their newest design/build projects will bethe expansion of the Anchorage Museum. “I’mextremely excited that our company was chosen forthis project,” Fike said. “We were competing againstsome significant general contractors and to be select-ed is confirmation that our business practices and rep-utation as an honest capable contractor are sound.”

Alcan General By SUSAN HARRINGTON

WWM

EM

BER

PR

OFI

LEM

EM

BER

PR

OFI

LE

PHOTOS: © KEN GRAHAM PHOTOGRAPHY.COM

Wendler Middle School, Anchorage, Alaska

Dimond High School foyer, Anchorage, Alaska



There is another component to the success of AlcanGeneral. “The people that work for this company truly are thebiggest strength.” Fike said, “starting with our Vice PresidentSteve Jelinek, Project Managers Chari Roberts and StanOlsen, Administrative Manager Patricia Cobb, and our fieldsupervision, Project Superintendents John Hester and MikeDunn. There’s a long tenure among employees; no one hasbeen here less than five years. We’ve got absolutely minimumturnover in our firm and that’s been one of our strengths—continuity. I have a wonderful staff of individuals who havesupported me with this company and through my AGCpresidency.”

Depending on the volume of work, Alcan General peaksat about 150 employees. As signatories with the carpenters,laborers and most of the other unions, they do their hiringthrough the union halls. Maintaining a steady workforce andfinding qualified people is a challenge Fike says AGC isaddressing.

“One of the thingswe’ve done through theConstruction IndustryEnhancement Fund is getthe word out that the con-struction industry is fun,interesting and well-pay-ing. Everybody says acade-mia is the way to go, butthe truth of it is construc-tion workers make morethan teachers. This is theother four-year degree.Most apprenticeships takeabout four years and theydo very well.”

The aging workforce and continued growthare causing a shortage of workers, a challenge forall in the construction industry. Fike says theAGC of Alaska and the AGC of America aredoing great things to address the problem oftraining new workers, including the new con-struction career academy they are helping spon-sor in the Matanuska-Susitna Borough School District. Inaddition, AGC has helped to develop the associate of appliedscience degree in construction management, now offered atthe University of Alaska Anchorage. “We’re hopeful that willturn into a four-year program,” Fike said, “One of the biggestchallenges for a contractor is to maintain a steady workforceand keep them motivated to accept new challenges as theygrow.”

Meeting new challenges is something Fike is familiar with.He grew up in the construction business as his father was aProject Superintendent, working since 1965 in the Anchoragearea. Fike spent three years in the Army after high school,became a journeyman carpenter, worked his way up in thefield to foreman, then superintendent. He owned a construc-tion company in Montana for about 11 years before coming toAlaska.

“I came here for the same reason everyone else does—anew adventure,” Fike said. “In 1983 I moved my young family

up here and worked as a superintendent for 11 years until Ifounded this firm, at which I’ve worked very hard to build up.”

Fike has positioned Alcan General to take advantage ofthe continued steady growth of the Alaska constructionindustry. He doesn’t see a spike or overheat unless the gaspipeline and ANWR both get the go ahead at the same time.

He sees steady continued growth with reasonable mar-gins, which is good he says because that makes for successfulcontractors throughout Alaska and contributes to a healthyeconomy. “The construction industry dollar turns seventimes,” Fike said. “By the time it gets back to the bank it goesthrough about seven different hands. Construction is one ofthe few industries that spends money like that—it’s great forthe economy of Alaska.”

One thing Fike sees as troublesome is the Municipality ofAnchorage Title 21 rewrite. It is meant to align Title 21 (LandUse Planning, Municipal Code of Ordinances) withAnchorage 2020 (Anchorage Bowl Comprehensive Plan).

What it does is dictate design and materialsused to build Anchorage, plus a lot more.

“I see Title 21 as a major cost increase forevery contractor and public facility built inAnchorage.” Fike said. “That’s one of my majorconcerns—the Title 21 rewrite is somethingeveryone should be concerned about.”

The AGC Title 21 task force, headed by JimFergusson, has spent more than a thousandhours reviewing the rewrite and has sent hun-

dreds of comments to the muni’s Web site atwww.muni.org/Planning/prj_Title21_pubcom.cfm. Postingsto the Web page by architects, engineers, State of AlaskaDepartment of Transportation, contractors and private citizensshow that a diverse group of people in Anchorage are takingan active interest in the Title 21 rewrite.

The Title 21 rewrite is but one facet of the constructionindustry that needs people to take an active role. “This is yourAGC and you’ve got to get involved,”Fike said, “and if you getinvolved you are going to get a lot more out of it than you putinto it. It’s a great feeling to help the industry.”

Being in the construction industry is a pleasure, accordingto Fike. “Construction has been a fun business for us—wetruly enjoy the industry. It’s been a great career. I’ve met somany people connected to the industry—bankers, architects,engineers—all the different personalities that make up thisindustry. People who are a part of the construction industryare great people. It’s just fun.”

Rabinowitz Courthouse, Fairbanks, Alaska

IMAGE: DAVID CHIPPERFIELD ARCHITECTS, LONDON, ENGLAND

© ANCHORAGE MUSEUM OF HISTORY & ART, USED WITH PERMISSION

Conceptual view of the Museum Expansion fromthe intersection of 7th Avenue and C Street.P

HO

TO

: ©

KE

NG

RA

HA

MP

HO

TO

GR

AP

HY.

CO

M



SAFETY REPORT

Can OSHA cite you even if you have not caused a haz-ard that your employees are exposed to? Am I subjectto the multi-employer policy even if I have nothing to

do with the construction industry?If you answered yes to both questions, you are well on the

way to understanding OSHA’s multi-employer citation policy(Directive CPL 2-0.124). On multi-employer work sites (in allindustry sectors), more than one employer may be cited for ahazardous condition that violates an OSHA standard.OSHA can visit your site for any number of reasons,including:

• An inspector can drive by and see a potential violation• A special emphasis or focused inspection• An employee complaint• An injury or fatality investigation• A high hazard industry inspection• A follow-up to a previous inspectionOnce they are on-site and have determined there is a vio-

lation, they will follow a two-step process to determineemployer status, who will be cited and if there will be morethan one employer cited.

Step OneThe first step is to determine the employer’s status. These

roles are not terms you may use every day in your contractlanguage and on the job. The four roles are:

Creating Employer – The employer that caused a haz-ardous condition. Employers must not create hazardous con-ditions. An employer that does so is citable even if the onlyemployees exposed are those of other employers at the site.

Exposing Employer – An employer whose own employeesare exposed to the hazard.You can be cited if you:

• Created the hazard • Knew of the hazard • Failed to take action to protect employees

Even if the exposing employer lacks authority to correct thehazard, it may be cited if it:

• Fails to request the hazard be abated• Fails to inform its employees of the hazard• Fails to take reasonable alternative actions

In extreme circumstances, the exposing employer can be citedfor failing to remove its employees from the job to avoid thehazard.

Correcting Employer – An employer who is engaged in acommon undertaking, on the same worksite, as the exposingemployer and is responsible for correcting a hazard.This usu-ally occurs where an employer is given the responsibility ofinstalling and/or maintaining particular safety/health equip-ment or devices. The correcting employer must exercise rea-sonable care in preventing and discovering violations andmeet its obligations of correcting the hazard.

Controlling Employer – An employer who has generalsupervisory authority over the worksite, including the powerto correct safety and health violations itself or require others tocorrect them. Control can be established by contract or, in theabsence of explicit contractual provisions, by the exercise ofcontrol in practice.

Multiple Roles – An employer may have multiple roles. Acreating, correcting or controlling employer will often also bean exposing employer. OSHA considers whether the employ-er is an exposing employer before evaluating its status withrespect to these other roles. Exposing, creating and controllingemployers can also be correcting employers if they are author-ized to correct the hazard.

Step TwoOnce OSHA has determined the role of the employer falls

into one (or more) of the four categories, Step Two is theprocess to determine if the employer's actions were sufficientto meet those obligations.

The extent of the actions required of employers variesbased on which category applies. Note that the extent of themeasures that a controlling employer must take to satisfy itsduty to exercise reasonable care to prevent and detect viola-tions is less than what is required of an employer with respectto protecting its own employees.

Prevention and discoveryIn evaluating whether a controlling employer has exer-

cised reasonable care in preventing and discovering viola-tions, OSHA will consider questions such as whether thecontrolling employer:

• Conducted periodic inspections of appropriate fre-quency

• Implemented an effective system for promptly correct-ing hazards

• Enforces the other employer's compliance with safety and health requirements with an effective, graduated

By CHRIS ROSS, CSPOSHA’s multi-employercitation policy part one of two

+



system of enforcement and follow-upinspections

Inspection factorsFactors that affect how frequently

and closely a controlling employer mustinspect to meet its standard of reason-able care include:

• The scale of the project • The nature and pace of the work • How much the controlling

employer knows both about the safety history and safety practices of the employer it controls and about that employer's level of expertise

More frequent inspections are needed ifthe controlling employer knows that theother employer has a history of non-compliance; or at the beginning of theproject, if the controlling employer hadnever before worked with this otheremployer and does not know its compli-ance history. Conversely, less frequentinspections would be performed wherethere is a good history, solid past per-formance and a record of compliance.

Information gatheringThese factors indicate a need for

general contractors (and other control-ling employers) to have a good knowl-edge of other employers working on siteor in the building. This information-gathering component might include areview of:

• Experience Modification Factor• Written health and safety pro-

grams• OSHA 300 logs• Type of hazard identification and

control process in place• Documented efforts of safety

processesInterestingly enough, all of these arecomponents of the Construction Healthand Safety Excellence Program (AK-CHASE), sponsored by Alaska OSHAand AGC.

In the next installment of this series,we will address an Action Plan forreducing multi-employer citations.

Chris Ross is the general manager ofAGC/NANA Training Systems, which is atraining and consulting group providingsolutions in health and safety, leadershipdevelopment and emergency response plan-ning. Call (907) 565-3300, or visitwww.nana-nts.com for more information.



hat is the company’s history?Arctic Striping Inc. was incorporated

in 1987. The principals were previouslyinvolved in other striping companies in Washingtonand Alaska.

Who are the owners/principals?Arctic Striping Inc. is a closely held corporation.

The principals are Doug and Shari Paulson.

What is the company philosophy and missionstatement?

We will consistently perform first class work prof-itably on all our projects.

What kind of work do you do?The majority of our work is pavement marking,

primarily on highways.We do some parking lot strip-ing and some traffic control work as well.

When and how did you get started in this busi-ness, line of work?

The owners have been involved in striping bothin Washington and Alaska in one form or anothersince 1962. Doug Paulson even worked on the Stateof Alaska paint crew for five years in the early ‘70s.

Is your business year-around or seasonal? Seasonal. Some equipment maintenance is per-

formed in the winter off-months.

Tell us about your employees; how many arethere and what do they do?

We currently utilize six full-time stripers and twooffice personnel. The field personnel are supple-mented with temporary employees if specific jobsrequire more workers. Most of our employees havebeen with the company for at least three years. Wemust be doing something right to attract and keepthe people we do. Ask anyone in the highway busi-ness and they will tell you Arctic Striping has the bestcrews. We have the best employees and do the bestwork. That is something we are very proud of.

Where is the company presently in Alaska’s con-struction industry in terms of scope, volume andlocation of work?

The majority of our work is highway striping. Atvarious times over the years we have painted quite afew airports. We are focusing less on that area of thebusiness now. The product the state most frequentlyspecifies for highway striping, MMA, was firstapplied in Alaska by Arctic Striping Inc. Our volumehas remained fairly steady the last 10 years in the $1

million to $3 million gross revenue range. We per-form work throughout Alaska except in the southeastregion of the state.

What’s coming over the horizon?Roads always need to be striped. The State of

Alaska will continue to experiment with differentcoatings in their quest to find the most durable, cost-effective material, and we will apply at least some ofit. With the population increases in Alaska, the roadswill need to be upgraded more frequently—thatbodes well for our business.

What challenges do you encounter with yourbusiness?

Striping, which on the surface appears so simple,is actually a very challenging business to succeed at.A good portion of our work is performed at the endof the season as prime contractors finish their paving.Weather conditions are frequently not optimal. Eachday lost to adverse weather puts us one day closer tothe end of the season. Our employees can’t just puton rain gear and work the day at lower productionlevels—we’re done until it dries out. Weather is theone challenge we can neither plan for nor change.

The equipment we use can be high maintenance.Proper maintenance is important to any equipment;and it is probably more so to our industry as so manythings can go wrong with a striping truck, whichshuts you down until it’s fixed.

We face the same challenges as other contractorsin hiring and retaining skilled workers. As we are inkind of a niche industry, this might be magnified forus. Striping work requires a good-sized investment inequipment, good management and good employeesto succeed.There has to be a certain amount of profitin the work in order to stay in business. We have beenin this business in one form or another for more than30 years now. We know something about it.

One particular problem we have faced the lastfew years has been undercapitalized start-up con-tractors bidding vast amounts of work below theirreal costs in a misguided attempt to control theindustry. Inevitably, this results in business failuresthat negatively impact all involved—employees andsuppliers of the failed businesses, prime contractorswho accept the subcontractor bids and then areforced to find replacement contractors, and DOT,which is ultimately responsible for the finished proj-ect. We feel that the federal Disadvantaged BusinessEnterprise requirements artificially force prime con-tractors to take subcontractor bids they wouldn’tordinarily consider, knowing from their years ofexperience what the results will be. I imagine the

Arctic Striping Inc.

WWM

EM

BER

PR

OFI

LEM

EM

BER

PR

OFI

LEArctic Striping Inc.

Q&A with DAVID BATES,Vice President and Project Manager



industry as a whole would be betterserved if the playing field was reallylevel without any artificial “goals” tomeet. The good contractors would suc-ceed regardless of any programs.

What challenges do you see facingthe construction industry in Alaska?

I imagine every contractor wouldanswer this similarly. The workforce isaging and it is getting harder to findreplacements as the workforce retires.Insurance and bonding have been majorheadaches for the last four years. Costskeep going up; and the coverage staysthe same or even declines. The AlaskaLegislature needs to come up with aworkable, long-range fiscal plan—it’scrucial to our state’s prosperity

What changes or reforms would helpAlaska contractors?

We feel that a return to a more levelplaying field in contracting would be ineveryone’s best interest. Given that theAdarand litigation has been back andforth between the U.S. Supreme Courtand the U.S. Court of Appeals in the last10 years, I don’t realistically expect tosee that in my career. The currentAdministration’s attempt to tackle theproblems with workers’ compensationis admirable. There is a long way to gowith a lot of factors to sort out, but thisis a start. We hope to see more DOTwork privatized.

Has your company benefited fromthe construction boom in Fairbanks?

We might have performed someminor of amount of striping directlyrelated to the current boom, but the realbenefits are to the community as awhole. It benefits all of us directly andindirectly when an economy thrives.The increase in tax base alone shouldhelp to reduce some of our propertytaxes while leaving surpluses to fundnecessary activities.

How could BRAC activity inFairbanks affect your company?

While we perform little work direct-ly on Eielson Air Force Base, the loss ofthat much money to an economy has tohave an effect. Leaving aside the possi-bility of economic loss to the communi-ty, we don’t feel closing or curtailingEielson’s activities are a good approachfor our nation’s defense. Eielson was

originally built for many reasons; themajority of those reasons are stillapplicable.

What is your connection with theAGC of Alaska?

We have been an AGC member asArctic Striping since 1987.

What are the benefits your companyrealizes from membership in theAGC of Alaska?

In no particular order: we make useof the plans room services, insurancebenefits and certainly the networkingopportunities. Without AGC’s voice atthe Legislature we would have little orno influence on legislation important toour industry.

Are you involved with any AGC ofAlaska committees, task forces oradvisory boards?

None currently, though we do helpwith the sponsorship of the AGC bowl-ing tournament each year.

What are future plans and goals ofthe company?

Arctic Striping will continue to meetthe challenges of an ever-changingcontracting environment while per-forming the first class work we alwayshave. We our proud of the contributionswe have made over the past 30 yearsand will continue on for many years tocome.

What is your secret to success?For more than 30 years we have

performed good work, on time. Theprime contractors know they can counton us. It’s kind of fun to have the con-tractor’s representative be the son ofsomeone we first dealt with in the ‘70s.That shows a long-term success we areproud of. It takes equal amounts ofdrive, planning, good management andgood employees. Given our long-termsuccess in the business we must haveall of these pretty well in place.

“Arctic Striping will continue to meet thechallenges of an ever-changing contractingenvironment while performing the first classwork we always have.”



In an August decision, the AlaskaSupreme Court approved theAnchorage School District’s award

of a bus contract despite flaws in thewinning proposal that would have war-ranted its rejection under conventionalprocurement rules, and without anyreal administrative review procedures inplace at the district level.The incumbenthad had the contract for 20 years, and“the District and the AlaskaDepartment of Education were con-cerned about lack of competition ...”Despite the incumbent’s lowest bid, thecontract was awarded to a new buscompany, one of five proposers. Theincumbent appealed to the SuperiorCourt and then to the Alaska SupremeCourt because of what it claimed wereirregularities in the district’s decisionand process. The boundaries of whatkind of flaws in bids can be waivedwere extensively broadened.

All IFBs and RFPs require that thebidders acknowledge receipt of alladdenda. The reason for that require-ment is that if a bid is submitted with-out that acknowledgement, theapparent low bidder could legitimatelywithdraw its bid after bid opening onthe grounds it did not have all of theaddenda. In order to avoid this, agen-cies require all bids to contain anacknowledgement of receipt of alladdenda. In the school district’s case,the RFP stated that the district “shallcertify a proposal nonresponsive,” if itfails to acknowledge receipt of alladdenda. The bus company that wasawarded the contract did not acknowl-edge receipt of the last addendum,though the incumbent had acknowl-edged it.The court excused the agency’sflouting of its own RFP language on thegrounds that “rigid enforcement of thisrequirement would have elevated formover substance, frustrating the district’sand the regulation’s clear intent to cre-

ate a competitive bidding process...”Had the district been required toobserve its own RFP language, it wouldhave been deprived of the opportunity“to compare multiple responsive bids.”In other words, only the incumbent’sbid would have been responsive.

Another RFP requirement was thateach bidder submit a corporate resolu-tion authorizing the person signing thebid to bind the company. The winningbidder submitted such a corporate res-olution naming three individuals, noneof whom signed the bid. Another per-son signed it on behalf of one of thenamed individuals, but there was noconfirmation of authority until after thebids were opened. This satisfied thecourt.

The RFP also required the bidder tosubmit financial information on thebidder. The winning bus company sub-mitted financial information for its par-ent, but not the actual bidder subsidiarycorporation.That again was not a prob-lem for the court.

The court also ruled that the schoolboard was not limited to the evaluationfactors set out in the RFP in evaluatingthe five proposals.

The school district faxed its notice ofits intent to recommend to the board anaward of the contract to the winningbus company to the bidders at 6:00 p.m.Friday night, which recommendationwas to be acted upon by the schoolboard at its meeting the followingMonday evening. The court called thisa “three-day notice,” and considered itsufficient notice to the aggrieved bidderto enable it to appear at the boardmeeting to present its position on therecommendation. The winner’s pro-posal itself was not made available tothe aggrieved bidder until the boardmeeting.

The decision to award the contractwas made by the school district board at

that meeting. The applicable regulationpermitted an aggrieved bidder torequest reconsideration if it thoughtthat there was “fraud or duress” or an“error in calculating dollar amounts.”There was no other administrativeadjudicative process for reviewing theboard’s decision. The court consideredthis right to ask the school board toreconsider adequate due process foraggrieved bidders because aggrievedbidders required only “minimal dueprocess.”The court reconfirmed its ear-lier rulings that even if the school boardhad been wrong in awarding the con-tract to the new bus company, theaggrieved bidder’s only remedy was therecovery of bid preparation costs.

The Department of Education regu-lation upon which this decision wasbased is no longer in force. Further, thedecision is not based upon procure-ment by the state under the AlaskaProcurement Code. However, whenissues and disputes arise under theAlaska Procurement Code, this decisionwill be used to support those agencydecisions which accept otherwise non-conforming bids and proposals, andthereby further eroding the contractingpublic’s confidence in fair, honest andequal treatment of all bidders and theirproposals. Erosion of the perception offair, equal and honest treatment of allbids and proposals reduces the numberof bidders inclined to participate, andthus reduces competition, ultimately tothe disadvantage of the procuringagencies. The green light given to theschool district to run rough-shod overits own RFP provisions and commonlyaccepted procurement norms will onlyresult in fewer and thus higher bids forschool district work in the future.

Robert J. (Bob) Dickson is a partner ofthe Anchorage law firm Atkinson, Conway& Gagnon, Inc.

School district procurement rules further relaxed

CONTRACTORS & THE LAWBy ROBERT J. DICKSON


N C Machinery Co.

Machinery Co., the old-est Caterpillar dealer inthe Pacific Northwest,

has played a vital role in Alaska'sgrowth, including providing machineryand supplies for the Gold Rush in theearly 1800s. Its steadfast commitment toproviding world class equipment, parts,technical support and service to its cus-tomers has made N C one of the leadingCaterpillar dealers in the world.The Seattlebased company currently serves the entirestate of Alaska and western Washington.

The Northern Commercial (N C)Company was founded in 1776 by twoRussian fur traders, who organized the firstcompany to do business on a continuingbasis in Alaska –a fur tradingpost on KodiakIsland.The com-pany movedinto transporta-tion and mer-cantile in theearly 1800s, andwas namedCaterpillar deal-er for Alaskaand the YukonTerritory in 1926.The company'sheavy equip-ment immedi-ately went towork buildingthe basic infra-structure of thenew frontier, aswell as in exploring and developingAlaska's vast resources.

During the past century, N C Machineryhas expanded its services and geographicalsupport in Alaska's developing territories.Caterpillar equipment has played a majorrole in supplying villages with electricalpower, enabling petroleum engineers todiscover oil, supporting miners looking forgold and other natural resources – the listgoes on and on.

PH

OT

OS:

CO

UR

TE

SY

OF

N C

MA

CH

INE

RY

CO

.

MEM

BER

PR

OFI

LEM

EM

BER

PR

OFI

LE

Starting with Holt tractors,

Northern CommercialCompany entered the

tractor market early.Holt Tractor merged

with C L Best GasTractors to form

Caterpillar in 1925. N C became the offi-

cial Caterpillar dealer for Alaska

in 1926.

One of the more than 100 early

trading posts N C Co. main-

tained throughout Alaska.

NN CC

Photo of theFairbanks branch,

circa 1901.

N C Machinery andCaterpillar equipment haveplayed a central role in thedevelopment of Alaska's nat-ural resources.

PH

OT

O:

CO

UR

TE

SY

OF

N C

MA

CH

INE

RY

CO

.




N C's rich history in Alaska exemplifies thecompany's focus on mutual success with its cus-tomers. Caterpillar equipment was instrumentalin finding the first Arctic petroleum reserves, aswell as building the 800-mile trans-Alaska oilpipeline. Today, N C supports a multitude ofdiverse industries in Alaska and Washington with11 branches, 211 technicians, 58 service vehiclesand over 56,000 parts line items. Likewise, sistercompany N C Power Systems provides sales,engineering, rental and product support for

Caterpillar engines and power systems in themarine, petroleum, truck, and power generationmarkets.

In a constant effort to give back to the com-munities it serves, works and lives in, N C alsoactively sponsors worthy causes across thebreadth of the state. From the City of UnalaskaHigh School to the Alaska Mineral and EnergyResource Education Fund, and from the UltraLow Sulfur Diesel and Clean Diesel EngineConference to the Resource DevelopmentCouncil for Alaska, N C is proud to play an ongo-ing role.

Never a company to rest on its laurels, N Chas plans in the immediate future to establish“The Cat Rental Store” at its Anchorage andFairbanks locations. “The Cat Rental Store” willrent Cat and other preferred brand products forthe construction and landscaping markets, aug-menting the larger Cat rental equipment that NC has provided for years.

What does the future hold? Alaska’s futurelooks very bright, with a strong economy and atalented, highly skilled workforce. The future forN C also looks bright, as it looks forward to thenext century of mutual successes and innovationsin partnership with its customers.

PH

OT

O:

CO

UR

TE

SY

OF

N C

MA

CH

INE

RY

CO

.

N C Machinery supplied over 1,000 pieces of Caterpillar equipment for the trans-Alaska oil pipeline.

In a constant effort to give back to thecommunities it serves,

works and lives in,N C Machinery Co. alsoactively sponsors worthycauses across the breadth

of the state.

Excavators, haul trucks and other

pieces of heavyequipment

are used in construction

projects throughoutAlaska.

PH

OT

O:

CO

UR

TE

SY

OF

N C

MA

CH

INE

RY

CO

.



I’d like to recap for you what we did this year toattract young people to our industry.

NCCER (National Center for Construction Education andResearch) has an entry level construction curriculum calledthe “Core Curriculum.”It’s 72.5 hours and it’s the one we offerand place in high schools. NCCER has enhanced this curricu-lum in the new 2004 version by adding two modules of softskill curriculum. One of the new modules is called “BasicCommunication Skills” and the other is “BasicEmployability Skills.”

We placed the Core Curriculum in 48 classroomsaround the state this past school year!

Three of the rural classes we placed the curricu-lum in we also funded class construction projectsthat complements the curriculum.

Students inStebbins builttwo sheds, each12 feet by 16 feet.One shed wasbuilt for thebilingual/bicul-tural departmentfor their Nativeproject supplies:clay, skins andgrass for baskets.The other shed is used to store the wood for Native sleds(green wood) by the construction school classes.

Students in Unalakleet built one 8-feet by 20-feet shed asdry storage for kayaks for their multicultural class.

And, the third school, in Shismaref, built a 10-feet by 12-feet shed addition to another school/community building fora shop for small engine repair and welding.

We already have picked up a couple of school districts wehaven’t worked with for school year ’05-06.Under the AGC of Alaska sponsorship for training we:

• certified 93 teachers to use NCCER curriculum• have approximately 346 students on the NCCER

National Registry (meaning those studentspassed at least one module of curriculum).

• have 188 students who’ve earned a certificate (meaning a student passed a prescribed series ofmodules).

We scheduled our first ICTP (Instructor CertificationTraining Program) class for the new school year for lateAugust ’05.

We may have Core Curriculum in a couple of Anchoragehigh schools this year! I’ll keep you posted.AGC can be a highschool’s construction curriculum best friend!

At the elementary level we’re continuing our efforts withBuild Up!, the AGC of America curriculum. In Anchorage wehave several partnerships with teachers that are on auto-pilotand are very successful.

Kevin Norton of Anchorage Sand & Gravel Co., Inc. pre-sented Build Up! to about eight elementary principals before

school was out last year.Kevin supports severalclasses of Build Up! atKincaid Elementary. Theprincipal of Kincaid,Kevin Hoyer, is a bigsupporter of Build Up!and supports us at allopportunities by tellingother schools aboutBuild Up!

We’ll strategize thisfall about how we wantto approach the schoolspromoting Build Up! thisyear in Anchorage.

In rural Alaska thetoolboxes, Build Up! andOn Site!, are popular.

However, the teacher turnover rate makes it more difficult topromote it with every new teacher. We look for opportunitiesto present at teacher gatherings, i.e. the annual professionaldevelopment event in Anchorage, etc.

The On Site! toolboxes for middle school are popular inrural, but it’s tough to place in Anchorage. However, we’recontinuing to promote and see what we can do.

Because we want to encourage interest in our industry andbecause the fifth grade and sixth grade are pivotal due to par-ents and students “de-selecting” careers it’s important wecontinue all the work we can in that age group.

For more immediate workforce impact for our contractorsthe AGC Construction Career Academy may take center stagefor interest with contractors next school year (‘06-‘07) atWasilla High School.

If your contracting business is experiencing a labor short-age the career academy may be of interest to you. Stay tuned,more information coming about our chapter’s educationefforts. You’ll not only want to know what’s going on, butyou’ll want to be involved!

What your chapter’s educationeffort accomplished this school year

EDUCAT ION REPORTBy VICKI SCHNEIBEL

MAT,Training Director

PHOT

O:G

ARY

ECKE

NW

IELE

R

PHOTO: R.J. TREVITHICK



PProject owners and managers in Alaska are warming up tothe design-build process of construction delivery, thanks tothe successful completion of high-profile projects in both thepublic and private sector.

Among this year’s construction projects being completedin Alaska are several design-build facilities, including a multi-level fire station for the city of Fairbanks, scheduled to be com-plete by the Interior’s first snowfall.

Patrick Smith, the city’s project manager for the $7.5 mil-lion fire station, is extremely pleased with the city’s initial forayinto the design-build process. “It’s worked out well for us,”hesaid, during a late June tour of the emerging structure.“Frankly, we had some concerns and there was some anxious-ness of using design-build because we never used it before.It’s a very steep learning curve for us.”

Opting for changeThe city decided to try the

design-build process aftercompleting a parking structurein downtown Fairbanks using the traditional design-bid-buildmethod a few years ago. “We werebeginning to feel that the traditionalmodel was doing two things—pro-viding us with less product for the pub-lic money, and also resulting in a moreadversarial relationship betweenthe city and the contractor,”Smith said.

With limited financialresources to construct a newfire station, the city opted touse design-build, issuing arequest for proposals inNovember 2003 and receiv-

ing design submittals from competing design-build teams inJanuary 2004. After short listing the group to three andreviewing detailed proposals, the city selected NeeserConstruction of Anchorage as contractor and Koonce PfefferBettis as architects. Neeser, which specializes in design-buildsystems, broke ground in April 2004.

Bigger buildingCompared to traditional construction delivery processes,

the city’s first design-build project provided more building forits dollars. Initially, consultants said the available moneywould fund a 19,000-20,000 square-foot building, Smith said.“We’re constructing almost 27,000 square feet,” he said. “Wesee the value because we gained very close to 7,000 squarefeet in a new fire station by adapting ourselves to design-buildconstruction.”

In addition to a larger building, the city has found itself ina pleasant situation—choosing among various upgradeoptions to spend its contingency funds.

“It’s worked out well for us with the transfer of risk to thecontractor … it has translated into a total contingency expen-diture of 3 percent. We usually do not go to bid without 10

percent,”Smith said. “We do have a little bit of moneyto pick and choose upgradesthat we wanted. It’s a veryrefreshing way to spend ourcontingency funds.”

Consolidated contractingDesign-build differs from

the traditional design-bid-build approach in that oneentity provides both the archi-tecture/engineering and con-struction services under onecontract. In design-bid-build,the owner commissions an

By Patricia Liles

Aerial view of the GVEA North Pole ExpansionProject with new substation at the Flint Hills

refinery in North Pole, Alaska.PHOTO: COURTESY OF H.C. PRICE COMPANY

PHOTO: LOUIS LE, GO2MOON PHOTOGRAPHY, COURTESY OF H.C. PRICE COMPANY

Editor’s note: This story was prepared before Golden Valley Electric Association terminated itsdesign-build contract with H.C. Price Co. due to mutual concerns over schedule and budget issues.

GVEA power plantproject site next

to existing refinery



architect or engineer to prepare draw-ings and specifications under a designservices contract and separately con-tracts for at-risk construction throughcompetitive bidding or negotiation.

Master builder conceptThe design-build process is some-

what of a return to the master builderconcept, where builders were engagedin both the design and construction ofstructures, a style of construction usedas far back as in ancient Greece. Then,master builders accepted full responsi-bility for integrating conceptual designwith functional performance, accordingto the Design-Build Institute ofAmerica.

Today’s construction industry seemsto be reverting back to that age-oldprocess, finding several advantages todesign-build when compared to tradi-tional methods of design-bid-build orconstruction management.Those tradi-tional processes oftentimes create anadversarial relationship between theowner and the builder during audit orchange order procedures, builders andowners say.

Design-build spreadingUse of design-build in the United

States has been increasing in frequencyand application during the past 30years. From 1986 to 1992, total use ofdesign-build in the public and privatesectors grew 172 percent, from $18 bil-lion to $49 billion, according to theinstitute.

Compared to the traditionalmethod of design-bid-build, thedesign-build process often offers ashorter construction time frame forcompletion, improved cost control,equal or better quality and overallowner satisfaction, according to a May2005 study of 21 major highway trans-portation projects nationwide complet-ed using the design-build process.

That study, completed by TomWarne and Associates, L.L.C. for DBIA,found that 76 percent of the 21 highwayprojects surveyed were completedahead of the schedule established bythe owner. All 21 projects, ranging issize from $83 million to $1.3 billion,were finished faster than if the design-bid-build process was used, Warnefound.

“The evidence of reduced sched-

Roger Hickel Contracting Inc. used design-build for theFood Services of America Fairbanks Distribution Centerproject, scheduled for completion November 2005.

PHOTOS: COURTESY OF ROGER HICKEL CONTRACTING INC.



ules, improved cost control, equal orbetter quality and overall owner satis-faction is compelling in assessing theeffectiveness of design-build,” Warnewrote. “The use of this delivery tool isgrowing and will become even morepronounced as more and more ownersseek to build projects that will requireone or more of these outcomes. Allowners should give seri-ous consideration todesign-build as a projectdelivery method for theirinfrastructure work.”

DOT&PF successfulIn Alaska, DOT&PF

first tried design-build onthe Anton AndersonMemorial Tunnel when ittransformed the railroadtunnel to Whittier into aone-lane, combinationhighway and railway tunnel. The proj-ect won a multitude of awards. ThePalmer-Wasilla Interchange was anoth-er successful DOT&PF design-buildproject, and the department is usingthe process with many transportationprojects.

While relatively new in Alaska inthe private sector, the design-buildconcept seems to be catching on morewith public sector construction, per-haps due to one key attribute in thestate’s abbreviated construction sea-son—the ability to successfully acceler-ate construction and completion.

Better fast-tracking“One of the most significant advan-

tages to the design-build process is theability to fast-track a project withoutlosing control of costs and without theassociated risks to the project owner,”said David Matthews, vice president

and Alaska area manager for H.C. PriceCo., which is building a new gas-firedpower plant for Golden Valley ElectricAssociation in North Pole using theengineering, procurement and con-struction (EPC) or design-buildprocess.

Price began construction on the $75million, 60-megawatt power plant late

in 2004. The contract calls forthe power plant to be declaredcommercial in April 2006, butPrice is working to acceleratethat completion date forGVEA.

The new power plant willbe located next to the existing120-megawatt HAGO (heavyatmospheric gas oil) electricgeneration plant owned andoperated by GVEA in NorthPole, on a site within the secu-

rity confines of the Flint Hills oil refin-ery.The new power plant will be fueledby naphtha, although it can be convert-ed to natural gas, should that fuelbecome available in quantity in InteriorAlaska.

The design also allows future

GVEA Plant building structure aboveutility room and steam turbine room.

PHOTO: LOUIS LE, GO2MOON PHOTOGRAPH, COURTESY OF H.C. PRICE COMPANY

continued on page 28


Anton AndersonMemorial Tunnel

Awards & Honors

• 2001 Outstanding Civil EngineeringAchievement Award, American Societyof Civil Engineers - their highest award

• 2001 Grand Award, American Councilof Engineering Consultants

• 2001 Best Project - Public Sector over$15 million, Design Build Institute ofAmerica

• 2000 Excellence in Construction Award,Associated General Contractors ofAmerica

• 2000 Globe Award for Excellence inEnvironmental Protection andMitigation, American Road andTransportation Builders Association

• Awards of Excellence for EngineeringDesign and Outstanding HeavyHighway Project, F. W. Dodge

• 2000 Concrete Bridge Award ofExcellence, Portland CementAssociation

• American Association of State Highwayand Transportation Officials:

Total Program Excel Award for Public Involvement with a Consultant

President's Award for Highways, to Tom Moses, Alaska DOT's lead engineer on the project

Source: www.dot.alaska.gov

Anton Anderson Memorial Tunnel opens for traffic on the hour in Whittier

and on the half hour on the Portage side.PHOTO: SUSAN HARRINGTON




expansion of the plant, raising the pos-sible capacity to 120 megawatts,should GVEA's electric demand con-tinue to grow.

To accelerate completion of a proj-ect, construction begins before theproject’s documentation is complete.Contractors do not need a completeset of construction documents beforebeginning to buy out or perform theproject, Matthews said. Early access tothe design allows visualization ofcomponents parts at an earlier stage,allowing work to start on systems nec-essary for the earliest phases of con-struction.

“In traditional construction(design/bid/build), fast-tracking canresult in significant change ordersbecause the contractor does not knowhow the architect or engineer willcomplete the design,” he said. “But inthe design-build system, fast-trackingdoes not result in any change ordersarising from completion of detailingthe construction documents becausethe designer and contractor are on thesame team and the contractor isdeemed to have anticipated andapproved the final details of theplans.”

Communication key efficiencyEfficiencies can come through

design-build teams who work togeth-er through verbal communications orsketches instead of through detailedconstruction documents, saving signif-icant time and financial resources, headded.

“Because the contractor is solelyresponsible for the completed productand is the single point of responsibili-ty for the quality, cost, schedule andperformance of the completed facility,not only is the owner’s risk reduced,but the need for owner involvement isalso significantly reduced,” Matthewssaid. “Owners who are accustomed tohaving full control and oversight overevery aspect of the project may actual-ly impact the efficiency of the contrac-tor’s progress, causing delays to thework and increasing costs. An overly-involved owner who imposes designor other constraints on the contractormay actually impair the protectionafforded by the single point of respon-sibility in a design-build system.”

continued from page 26



Fairbanks highly involvedAt the city’s fire station project,

Smith said his involvement on theowner’s behalf has required “a veryintensive level of project management… owner involvement is much higher.”

Daily issues requiring his involve-

ment range from concrete strength andsteel placement to selection of wall tileand door hardware, Smith said. “Whenyou do not have 100 percent of (con-struction) documents, certain elementsare left to be puzzled out while theproject is being built.”

The city also took a risk usingdesign-build for such a specialized-usefacility. Traditionally, design-build has

been implemented in easier-to-designstructures, such as office buildings,hotels and other large, single-purposefacilities, Smith said. “Design-build isnot for every building and it doesn’t suitevery builder,” he added.

Military design-buildAnother government entity in

Alaska that has trended toward design-build in recent years is the U.S. ArmyCorps of Engineers. More Air Force-related projects than Army constructionprojects are using design-build, accord-ing to Dean Homleid, Eielson projectmanager.

“We’ve done everything from 4,000square-foot HAZMAT facilities to largedormitories,” he said. “The advantagefrom the government’s standpoint isthat it actually places liability on thecontractor as opposed to the govern-ment when providing 100 percent ofthe design (in design-bid-build).”

The Corps has found design-buildto also offer better quality control, headded. “Overall, we think we’re gettingbetter value.”

The Air Force has embraced theprocess more so than the Army,

Patrick Smith serves as project manager for thecity of Fairbanks, which utilized the design-buildprocess to construct a new fire station.

PHOT

O:P

ATRI

CIA

LILES



Homleid said, offering a stipendor financial compensation to thetwo design-build teams selectedas finalists but not awarded theconstruction contract in the com-petitive process. The stipend, typ-ically about $55,000 for each team,“offsets the costs of putting theproposal together,” Homleid said.“It makes it a little more palatableto put proposals together and wehave found that we receive high-er quality proposals.”

Higher contractor riskComparatively, Army con-

tracts do not offer such a stipend,a considerable risk for the con-tractor/design team consideringinvolvement with such a project.

“It is expensive to preparethose proposals—we have quitea few meetings and generate quitea few ideas,” said Bill Williams, a project superintendent forNeeser Construction. “It makes it pretty risky and competi-tive at the same time, and you have no avenue for recovery ifyour proposal is not selected.”

He was involved in the initial stages of Neeser’s workpreparing its proposal for a new community center con-structed at Fort Richardson, one of the Army’s earliest

design-build projects in Alaska.“You either are awarded the project

or you have nothing,” Williams said.“You can’t go back to the owner andwork on it … on this particular project,rather than looking for the payoff atthe end, we were looking at more offorming a relationship with theCorps.”

Additionally, owners view ongoingrelationships between builders anddesigners as bringing value to thetable. “What we’ve seen is that con-tractors are starting to form teams oralliances with architects and engineersas they go after design-build projects,”Homleid said. “As a team, they becomemore efficient together and providemore value.”

For its involvement, design-buildseems to be working for the Corpsprojects in Alaska, he said. “We tend topay more up-front when we pay for the

cost of the design, but by the same token, we do not have todraw up the design. It takes a lot of risk away … there’s justnot a lot of downside to it.”

Patricia Liles is a longtime journalist who covers Alaska business and industry issues. She works outside of Fairbanks.

Crews prepared to place the final exterior covering onthe Fairbanks Fire Station in late June.

PHOT

O:P

ATRI

CIA

LILES



As someone who has spent morethan 35 years in the construction

game, and over 20 years in Alaska, theopportunity to discuss emerging trends

is both exciting and daunting. Excitingbecause it involves a subject I am truly pas-

sionate about, and daunting because it is sucha large subject. When I look back at what did

not exist 35 years ago—computers, faxes and e-mails; plastics in the construction market; copy

machines; battery operated hand tools; EPA, EEOand OSHA; large-scale hydraulics in the large

machines; concrete pumps; digital cameras; and the list

goes on—I am truly challengedto predict a similar list into the

future. Thirty-five years ago thePolaroid camera was cutting edge

and now it is obsolete.

OwnersOwners will continue to demand more

from the construction team in the way ofdesign expertise, quality, speed of construc-

tion and risk taking, while providing less in theway of design, financing and project manage-

ment. Owners will have to learn to market theirconstruction projects to an ever-shrinking pool of

qualified contractors, and to modify their contractual,bonding, insurance and labor requirements to mirror changesin the marketplace. Fifteen years ago it was common to see sixor eight general contractors competing for a project in Alaska,now it is usually two or four contractors—in the future it willbe an even smaller number. Some owners will continue toevolve for the better. Anchorage School District’s use of theDispute Review Boards is a positive example of an ownerevolving to solve a challenge in the construction industry.

ContractorsContractors will in the future find less competition, but

whether or not they can convert that into higher profitsremains to be seen. They need to learn again that higher vol-ume does not always equate to more profits.They will contin-

BY JIM FERGUSSON



ue to be challenged with a shrinking,graying labor pool. This shortage willexist in all areas—the field, the officeand in the engineering and projectmanagement functions. In the 1970s onthe West Coast there was a glut of tal-ent. Today there is a shortage at everylevel, and in the future that shortage canonly grow worse. We will have to see ifefforts like the Mat-Su Career Academypartially funded by the ConstructionIndustry Progress Fund and AGC willprovide the necessary workers the con-struction market needs.

Insurance & BondingContractors will continue to be chal-

lenged by an insurance and bondingindustry that vacillates from a time ofexcess, when anyone can obtain therequired bonds and insurance, to a peri-od like now, when obtaining the neces-sary insurance and bonds takes yourfirstborn and a ridiculous pile of cash.This is particularly galling in that theshortage is not solely due to losses inthe construction market. Also con-tributing are losses due to bad invest-ments in the stock market and in thecommercial surety market.

CostsMaterial prices will continue to go

up and go down; to remain successful,contractors must learn to control thosecosts by locking in their costs at the timeof contract signing or by developingcontracting efforts that share thoseincreased costs with the owners. Thecost of money can only go up—only thevery young will be around the next timeto enjoy the benefits of cheap moneythat we have recently experienced.

SubcontractorsThe number of subcontractors will

continue to decline due to the chal-lenges in regards to bonding and insur-ance, the “wrap-up” or consolidationtrend that is prevalent in the industryand the graying of the owners withheirs that do not want to be in the busi-ness.Those companies that remain andare viable will continue to grow andprosper with the only limitations beingtheir own management skills and theirability to raise and manage their capital.

UnionsIn regards to unions we will see a

significant consolidation in the number

of unions, with some of the smallerunions being absorbed into the largerunions. We will see a significant, high-dollar effort in organizing, but we willsee little or no growth in the percentageof construction workers who are union.We will not see a significant decline inthe number of union workers either. Wemay see our first construction strike in adecade or more, and it will be overhealth care and/or retirement benefits.The labor peace we have enjoyed maybe rocky for a while.

EquipmentEquipment will continue to become

faster, more specialized and yes, moreexpensive. We have already seen themechanic with a wrench go the way ofthe blacksmith to be replaced by a tech-nician with a laptop. In tomorrow’sworkplace it will not be uncommon tohave a piece of equipment call therepair shop on its own cellular phone toreport a pending problem, order thereplacement part and schedule a tech-nician to make the repair. Gradingequipment today can communicatewith satellites thru a GPS system andwith a laptop to determine the amount


of cut or fill without human input.Robotics may penetrate the construction market in the next

25 years.The operation and maintenance of today’s equipmentfleet will take an entirely different group of individuals than inthe past. Maybe playing all the Gameboys and Xboxes will payoff for a few lucky individuals. Concrete pumps, cranes andforklifts will become larger, faster, easier to erect and move, andhave larger capacity. Miniaturized versions will get smaller andyet have remarkable capacity for their diminutive size.Equipment will continue to evolve to replace the shrinkinglabor pool. Hydraulics will continue to dominate the equip-ment arena, but in the future they will be more controlled byelectronics than by the human touch.

GovernmentGovernmental bodies at all levels will continue to produce

legislation and regulation that will add to the contractor’sworkload, but will provide little true relief to the problems athand. After making that statement, we have to admit con-struction is safer after the adoption of OSHA, and there is lessdiscrimination after the adoption of EEO. Construction willcontinue to become a safer industry in the future.

The U.S.Tax Code will continue to grow exponentially andyou still will not be able to understand it. The Estate Tax mayfinally be eliminated, but the government will find anothermeans to collect that tax revenue. Alaska will have a stateincome tax and a state sales tax. Governments will continue togrow to spend all the money available. Local governmentswill continue to strengthen the local zoning and building

codes, although the current efforts to revise Anchorage’s Title21 will fail in the area regarding aesthetics.

MaterialsMaterials will continue to become improved, more spe-

cialized and more expensive. Wood framing will be replacedwith light-gage metal framing, wood windows and doors willbe replaced with vinyl, and wood shake roofs will becomeextinct. Carved and polished stones will be replaced with“cultured stone” as the pressure grows on costs and theskilled labor becomes rarer. Science and industry will finallydevelop freeze-resistant admixtures that will allow the pour-ing of concrete in freezing conditions without temporary heat.Naturally, code writing authorities will take at least a decadeto accept the new material while complaining about the highcost of construction. Maybe, just maybe, an economical sourcefor lightweight aggregate will be discovered in Alaska, ordeveloped, that will allow the production of lightweight blockand lightweight concrete in Alaska.This single item will prob-ably reduce the cost of block work in Alaska by at least 25 per-cent.

DesignersThe number or architectural and engineering firms will

continue to decline, with fewer firms doing more of the workwith less people. This decline is due to issues with obtaininginsurance and licenses. Unfortunately, in the eyes of the con-tractor the quality of the drawings will continue to decline.This is due in part to the growing separation of the designerand the builder.The designer does not get to see the steps the




builder must go through and the builderdoes not understand nor appreciate thesteps the designer must take.The largestdisappointment of all is that some own-ers do not understand or care about theefforts of either the designers or thebuilders. Owners continue to demandmore while providing less input.The useof computer aided design will continueto grow. It has a positive influence inthat it is quicker and allows a designerto compare more options; it has a nega-tive influence in that errors that wouldhave been caught while manually draft-ing the plans are allowed to get through.One issue that is a major concern is thatan error could get through a computerdesign that would cause a structural col-lapse.We will predict that somewhere inthe world within the next decade therewill be a major structural collapse withsignificant loss of life and money due toa data entry error or the erroneous useof a software design that gets throughthe design, permitting and constructionprocess. The legal industry will thenspend considerable time and moneyarguing who the designer was—the tra-ditional structural engineer or the soft-ware author?

Bottom LineIn summary, the construction indus-

try in Alaska will continue to grow in thenext decades and be built by fewer firmsemploying less people, with the firmsand the employees both enjoyingabove-average compensation. Ourequipment will be bigger, smarter, moreproductive, more expensive and takemore specialized maintenance. Ourmaterials will become stronger, moredurable, easier to install and yes, moreexpensive. Our designs will be comput-er aided and take a greater effort tobuild. Our government will becomelarger, less responsive and more expen-sive. And for those young enough toenjoy it, the construction industry inAlaska will continue to provide signifi-cant challenges, a great sense of accom-plishment and a comfortable wage.

Jim Fergusson is CEO of Fergusson &Associates Inc., and a registered civil engi-neer in Alaska, Washington, Nevada andCalifornia. He provides construction man-agement expertise for difficult and chal-lenging projects in Alaska.



You remember from math classhow a basic equation works: x + y= z.You can’t get to the end result

of “z” without the “x” or “y.”Payroll direct deposit also has three

variables: an employer, an employeeand a bank. An employer needs a finan-cial institution that’s part of theAutomated Clearing House (ACH) sys-tem in order to electronically depositpayroll into an employee’s account. Theprocess is fairly basic, and saves time,paper and money.

But the rules governing this elec-tronic exchange of payments aren’t asstraightforward. In fact, they’re complexand constantly changing. This is wherebanks become important.

Many banks employ AccreditedACH Professionals (AAP) to ensurethey are providing the best service inthis area. Also, banks themselves—likeany other business—are always lookingfor ways to improve efficiency andincrease income, and direct deposit isone way to make this happen.

Therefore, any business that wantsto add value to its payroll operation canlook to its bank as a great resource forinformation and expertise on how toexpand and improve its ACH-basedservices. It’s a win-win-win situation forbanks, employers and employees.

Some people might wonder justhow much more value can be derivedfrom ACH-based services. After all,they’ve been available for more than aquarter of a century and are proven tobe extremely reliable.

The fact is that ACH-based servicesare becoming more of a necessity forbanks, employers and employees.

Consider, for instance, how businessis done in the great state of Alaska.Many communities in Alaska are onlyconnected to other communities in thelower 48 states or even in Alaska viaplane or boat, and these are vulnerableto even small changes in the weather.

Banks and businesses depend on theACH system to conduct transactions ina timely manner.

This dependence became crystalclear after the Sept. 11, 2001, terroristattacks. Planes were grounded. Checksthat were on those planes couldn’t getwhere they were going. Alaska bankershad to get creative with their transporta-tion in order to continue business.

But it was business as usual for bankcustomers enrolled in direct deposit.Their payments cleared like clockwork.

Though Alaska certainly has differ-ent needs than the lower 48 states dueto its vast size and separation from thecontiguous United States, it’s a greatmodel for the direction business in gen-eral is moving.

As the business world becomessmaller through advances in technolo-gy, there is a growing need to payemployees in other parts of the country,and internationally. Companies andbanks alike are expected to performquickly and inexpensively—whetherthe transaction is domestic or interna-tional. Direct deposit of not only payroll,but also expense account reimburse-ments, annuities, tax refunds, pensionpayments, bonuses, commissions, socialsecurity, vendor payments and moreplays a big role.

To help meet these needs, the ACHsystem is expanding. Direct deposits cannow be sent from the United States toCanada, Mexico and some Europeancountries.

Like with Canada, the payment flowis at first just from the United States tothese countries. When the NationalAutomated Clearing House Association(NACHA) and the Federal Reserve areconfident that U.S. financial institutionscan apply Patriot Act screening require-ments, ACH payments will be allowedto flow into the United States also.

One of the biggest advantages ofthis service is called FedACH

International, for employers based inthe United States is they can send pay-ments to Canada-based employees inCanadian dollars, and fund the paymentat the point of origination in U.S. dol-lars. It is important to note that thoughthese payments are all originated usingNACHA formats, different rules applyto how return items are handled in dif-ferent countries.

The ACH system is growing, butother things are also growing that aren’tquite as business friendly—like checkfraud. Since 1997, the number of checkfraud attempts has doubled every twoyears, according to the AmericanBankers Association.

Because check fraud can occur whenan individual takes a payroll accountnumber directly off a check and thenmakes transactions against thataccount, banks encourage businesses toparticipate in direct deposit as a coun-termeasure to this type of fraud.

To further enhance the safety ofdirect deposit, banks also strongly rec-ommend the practice of initiating pre-notifications. Though some employersmay not like the idea of a possible delayin the direct deposit process, financialinstitutions and employers alike havefound that initiating prenotes saves inthe long run—it reduces employee dis-satisfaction by allowing errors to be cor-rected in advance, and also reduceshandling costs.

From all ends, direct deposit is goodfor everyone involved, and the benefitscontinue to evolve. Remember thatfinancial institutions can provide thehelp almost any company needs to takeadvantage of these benefits, and to con-tinue adding value to its operations.

Valerie Bale, AAP, is a Vice President atFirst National Bank Alaska, and is the headof the bank’s Electronic BankingDepartment.

What your bank can do for you

BANKING & CONTRACTORSBy VALERIE BALE, AAP


It rained almost six inches in downtown Juneau inJuly this year, showering the capital city on 28 of 31 days forthe month. But that’s short of the more than 10 inches of rainthat fell during July 1997, the wettest July on record. It’s just partof the job if you’re a contractor in Southeast Alaska.The summer isno guarantee of clear skies for the new roof or to keep the plaster-board dry on the job site.

“We just have people who are used to working in the rain,” said JimWilliams, president of North Pacific Erectors Inc. in Juneau. “You just getused to putting on your raingear and going to work.”

It’s hard to find a job in Southeast without waterproof overalls and jack-ets for the crew, deep ruts from machinery churning up the mud and lots ofplastic pipe to direct the water away from the work site.

Wayne Coogan, an owner of Coogan Construction Co. in Juneau, has thesame attitude as Williams. “We can’t wait for good weather in Southeast.You’ve just got to proceed with the rain.”

Creating dry airIf the weather doesn’t cooperate with

dry air, contractors have little choice but tocreate their own.

“We use air-lift tents,”Coogan said, run-ning high-velocity air blowers to lift andhold up plastic tents covering the structure,allowing the crew to complete roofing orother work on schedule.The tents can coverup to a half-acre, he said.

“We have this wind-driven rain … youdon’t have this horizontal rain elsewhere,”said Alan Wilson, past president of theSoutheast Alaska Building IndustryAssociation. And if a tarp covering the roofdoesn’t work, he said, sometimes contrac-tors have no option but to build a moreelaborate but temporary shelter over theroof to allow the job to continue. “Eitherway, it adds expense,”Wilson said.

By Larry Persily

SSure, contractorsexpect bad weather in the fall and winter inAlaska. But during thesummer, too?

Juneau

Sitka Kake

Naukati

Skagway

Petersburg

Wrangell

Hydaburg

Angoon

Douglas

Coffman

Cove

Admiralty

Island

Prince of Wales

Island

PHOT

O:C

OUR

TESY

OF

COO

GAN

CON

TRUC

TIO

N

Bartlett Regional Hospital expansion in Juneau.



Rain inevitableDealing with rain is inevitable. In Wilson’s 13 years of residential and commercial work in

Juneau, there was only one job in which he got as far as putting felt on the roof before the rain hit.Every other time, the rain came before the roof was closed up.

Contractors have little choice but to trust their experience with the weather and factor the extratime into their bids. If they get lucky, and the lumber and plasterboard and steel stays drier thanexpected and the work proceeds on schedule, they can put a little extra money into their pocket,Coogan said. If not, that’s the risk they take, he said.

One way to avoid some of the weather risk is to exclude exterior painting from the contract,especially for residential work, Wilson said. That turns over the problem to the building owner.If painting is part of the job, he said, “most of the builders are pre-painting the siding in theshop,” or ordering it pre-painted or primed from the manufacturer. “It’s an added cost to justnailing it up and having the painter come along and spray it all,”Wilson said. But one advan-tage is a longer life for the siding from a dry application of the paint or stain.

Pre-painting the wood is one of several methods adopted by Southeast contractors.Another is simply avoiding the material.

“I’m not much into building things out of wood,” Williams said. “It’s obvious theSoutheast side of every Juneau building is rotted.”While that might make sense for NorthPacific Erectors, which started almost 30 years ago as Southeast Steel Erectors, otherbuilders can’t as easily avoid using wood.

Steel problemsBut even steel has its problems in the rain forest, said Wayne Jensen, of the Juneau

architectural firm Jensen Yorba Lott. It can get rusty if left out in the rain too long,welding can be a problem in a downpour, and then there is the wind.

A metal-frame building under construction in Juneau last year was not suffi-ciently braced and part of the structure fell down during strong winds, Jensen said,

ati

burg

Wrangell

ydaburg

Ketchikan

fman

ince of Wales

Island

PHOT

O:C

OUR

TESY

OF

JEN

SEN

YORB

ALO

TTIN

C.

Workers in the southeast rainbuilt AHFC’s Paxton Manor

apartments in Sitka.




noting that contractors have to bewatchful for stormy weather and takeextra steps to prepare their work inprogress to withstand the gusts.

In addition to coveringup from the rain and brac-ing against the wind, con-tractors can take otherprecautions to keep the jobon schedule and on budg-et. Not only keeping mate-rials dry but avoidingmaterials that are especial-ly troublesome when wet isone way to beat the cli-mate, Wilson said.Repeated freezing andthawing during Southeast winters —unlike the rest of the state that usuallystays frozen the full winter — is a prob-lem for materials that don’t handle itwell, he said. Wind can force water sodeep into some manufactured productsthat it can’t evaporate and will freezeinside the materials, Wilson said.

That means watching the weatherand getting the material up and sealedwith paint or stain before the rainreturns. Or use something different. Forexample, instead of water-based caulk-

ing compounds that never seem to getenough time to cure in Southeast,Wilson prefers urethane- and silicone-based caulk. And he avoids hardboard

siding and T-111siding if he can.

Dry materialsRegardless of the material, it’s

important to keep it covered and dry onthe job site, and especially to keep sup-plies off the wet ground, said MarquamGeorge, who teaches construction atthe University of Alaska Southeast inJuneau.

It’s also best, if possible, to avoiddigging down into the water table,

which only invites trouble from mois-ture rising out of the ground and con-tinuously getting into the structure, saidGeorge, who has 20-plus years as alicensed builder in Southeast in addi-tion to his classroom work. Building upfrom the ground, not down, if possible,is preferred, he said.And it’s also impor-tant to grade the ground around thebuilding, putting in adequate drainageto direct the never ending rainwaterand runoff away from the foundation.

And it’s hard to imagine too muchoverhang from the roof, said architectJensen. “The more overhang you have,the more protection you have for thewalls.”

One new construction methodJensen said he is seeing is called “rain-screen walls,” which keep the sidingaway from the walls to allow for venti-lation — and drying — from both sidesof the siding. Residential and commer-cial builders are using either wood stripsor a quarter-inch-thick plastic mesh tohold the siding away from the walls,Jensen said.

New plastics are a big help mosteverywhere you look, and stronger,reinforced plastic sheeting is also help-ing, Coogan said. The cost has comedown on the reinforced sheeting, allow-ing contractors to use it more to protectwork in progress from the wind andrain. The stiffening fibers runningthrough the plastic makes it look some-thing like fishnet, he said.

Moisture problemsRunning fans during construction

isn’t limited to keeping plastic sheetingoverhead for roof work. Contractorshaul out the blowers at ground level,too. When the building is framed andworkers are ready to start insulating andhanging plasterboard is the time to getthe water out of the structure.

“You have to get the bulk of themoisture out of the wall cavity,” or itcould be trapped behind the insulation,Wilson said.

Then the trick is to keep the mois-ture out after closing up the job.Contractors are learning more aboutplastic vapor barriers and other “vaporretardants,” though they sometimes canhave the unintended consequence oftrapping moisture inside the wall,where it can get into the insulation,George said. He also is seeing more

Air-lift tent used tokeep workers andmaterials dry for re-roofing SitkaSchools .

PH

OTO

S:C

OU

RTESY

OF

JEN

SEN

YO

RB

ALO

TT

INC.



builders install insulation on the out-side wall, before hanging the siding.

A builder can never be too cautious,warns Dick Cattanach, executive direc-tor of the Associated GeneralContractors of Alaska. “In the pastdecade we’ve become very aware ofmold,”with expensive claims and litiga-tion driving much of the education, hesaid. “It is imperative that you keepyour products and your site dry.”

On-time delivery — just like theauto makers use to hold down theirexpensive parts inventory at the factory— can help keep building materialswarm and dry at the supplier until theyare needed at the job site. But thatdoesn’t work at many Southeast con-struction jobs, Cattanach said. “That’s agood model, but how are you going todo it in Southeast?”

Every job remoteMost every job is remote by normal

standards, with no road to a large dis-tribution warehouse.

“You just don’t go to Home Depotand pick up whatever you forgot,”Williams said.

Contractors have little choice but toimprovise. North Pacific Erectors wasbuilding a health clinic at the village ofAngoon last year when the state ferryLeConte ran aground, taking away thejob site’s scheduled freight service.Angoon is on the west side ofAdmiralty Island, about 60 air milesfrom Juneau but farther by boat.

North Pacific chartered landingcrafts to haul materials to the job, “andwe even put our own personal boatsinto service,”Williams said.

PHOT

O:C

OUR

TESY

OF

JEN

SEN

YORB

ALO

TTIN

C.

Naukati School site on Prince of Wales Island.



His company works all aroundAlaska, giving Williams an overall viewof construction problems statewide. Inaddition to remodeling a middle schooland residing the state Pioneers Home inJuneau this summer, North Pacificrecently worked on two Prince WilliamSound projects — a ferry system mainte-nance building in Cordova and a ferryterminal in Valdez — and a highwaymaintenance building in Chandalar, justnorth of the Arctic Circle.

Flood of projectsDespite the fact that the majority of

the company’s work — and the majorityof all construction work in Southeast —comes from federal, state and municipalprojects, Williams said he wins a fairnumber of jobs from private developers.North Pacific is getting ready to buildtwo retail buildings on Juneau’s maintourism shopping street, South Franklin,with the projects adding up to close to $5million in construction, he said.

Also in Juneau, Coogan Constructionis busy this year on a $254 millionexpansion contract at Bartlett RegionalHospital. The three-story, 56,000-square-foot addition includes a newemergency room, critical care unit andeven a rooftop helicopter pad. The com-pany also is working on a $3 millionreroofing project for Sitka schools and

looking forward to the added economicactivity that the Kensington gold minewill bring to Southeast, Coogan said.

The gold mine, about 45 miles northof Juneau, is being developed by CoeurAlaska, a subsidiary of Idaho-basedCoeur d’Alene Mines Corp. The compa-ny received its final state and federal per-mits earlier this summer, with work tostart this year — unless opponents delaythe project through administrative orlegal appeals. The construction crew isestimated to reach 300 workers, with a

$254 million expansion of Bartlett RegionalHospital in Juneau

PHOT

O:C

OUR

TESY

OF

COO

GAN

CON

STRU

CTIO

N



budget estimated at $92 million.North Pacific Erectors already has

shared in the renewed mining industryin Southeast, picking up work at theGreens Creek silver, zinc, gold and leadmine on Admiralty Island, west ofJuneau.

Next summer’s schedule should seethe start of construction work on a sec-ond Juneau high school, about 10 milesnorth of the existing high school, withthe $60-plus million project in final

design. Excavation is underway thissummer. Completion is scheduled for a2008 school-year opening.

Meanwhile, work already is underway on the 64,000-square-foot TedStevens Marine Research Institute onthe waterfront at Lena Point, about 15miles north of downtown Juneau. TheNational Marine Fisheries Servicebuilding is budgeted at $51 million, withJ.E. Dunn Inc. of Portland the winningcontractor of the job. Completion isexpected by January 2007. SoutheastEarthmovers Inc. did the site work inpreparation for construction that startedthis summer.

A University of Alaska School ofFisheries and Ocean Sciences building,at 31,000 square feet, will go up nextdoor to the federal lab.The $21.5 millionproject is scheduled to get underwaynext year, with the university regentsexpected to see the design this fall.

Among this year’s recently complet-ed jobs was the first highway round-about in Southeast, on the Douglas sideof the bridge spanning GastineauChannel to connect with Juneau. The$2.37 million project went to SeconConstruction, which opened the round-

Ironworker sets beam in the rain atGreens Creek mine on Admiralty island. PH

OTO:C

OUR

TESY

OF

NO

RTH

PACI

FIC

EREC

TORS



about to traffic in early August — afterpaving delays due to, what else but rain.

Scheduled for a September openingis a $9.5 million joint-use building atthe University of Alaska SoutheastAuke Bay campus in Juneau. The uni-versity will use the two-story, 53,000-square-foot facility as a recreationcenter, with the Alaska Army NationalGuard sharing the building as a readi-ness center for its activities. DawsonConstruction Inc. was the builder, withJensen Yorba Lott serving as the archi-tect on the job.

Dawson’s other Southeast workunderway this year includes repairs andnew siding at Ketchikan GeneralHospital ($1.1 million), Petersburgschool renovations ($3 million), anaddition to the Best Western LandingHotel in Ketchikan ($6 million), a new42,000-square-foot Ketchikan elemen-tary school ($10 million) and renova-tions at the Hydaburg elementaryschool ($4.6 million).

Elsewhere in Southeast, KiewitPacific Co., of Vancouver, Wash., has a$7.2 million Army Corps of Engineerscontract for replacement and upgradeof a dam at Kake. The concrete dam is

scheduled for completion in 2007.Juneau’s Trucano Construction has

completed its work on a seawallreplacement job at Skagway under a$3.2 million contract, with work nowunderway on a $5.1 million HarrisHarbor renovation project in Juneau.

Juneau’s Secon Construction isworking on almost $20 million of high-way jobs this year: a state contract torebuild part of Glacier Highway northof Juneau, a state project for a MitkofHighway coastal path and ferry termi-nal resurfacing in Petersburg, andrebuilding part of North TongassHighway and South Tongass Highwayin Ketchikan.

Southeast Road Builders was close

in mid-August to finishing a $2.7 mil-lion Wrangell Airport Access Roadrealignment project, and work wasunder way at its $9 million CoffmanCove ferry terminal job. Western Dock& Bridge is expected to start work inSeptember on a $2.2 million contractfor Petersburg Middle Harbor renova-tions, with McGraw Constructionalready at work on a $7.4 million swim-ming pool contract in Petersburg.

Southeast Earthmovers has thecontract for $2.4 million in streetimprovements in Sitka, on SewardAvenue and Tongass Drive; andWolverine Supply Inc. is working on a$2.6 million contract for building reno-vations at the University of AlaskaSoutheast Ketchikan campus.

All that work could mean a shortageof skilled workers, said Wayne Coogan.Young adults coming out of high schoolwant to be one of three things, he said.Either a sports star, a rock star or a com-puter millionaire. “No one says theywant to be a construction worker.”

Larry Persily is a longtime Alaska jour-nalist who recently moved to Anchorageafter 29 years in Southeast.

PHOTO: © BRIAN ELLIOTCOURTESY OF CONSTRUCTION MACHINERY INDUSTRIAL L.L.C.

General contractor Secon workingthe 3rd Ave. bypass project

in Ketchikan.



Afew years ago Hollywood came out with a movie calledThe Perfect Storm. In the movie a fishing boat left port, itscrew full of high hopes, only to be caught in open ocean

when weather conditions came together to create a massivelydestructive storm. For property rights advocates like Pacific LegalFoundation, three recent U.S. Supreme Court decisions seemedlike a perfect legal storm.

The first case, Chevron v. Lingle, involved a Hawaiian lawlimiting the rent oil companies could charge leaseholders ofcompany owned gas stations. Chevron sued using a 25-year-old legal precedent that says if a regulation reduces or elimi-nates the value of private property, it must substantiallyadvance a legitimate state interest or be deemed an unconstitu-tional “taking”requiring the payment of just compensation tothe property owner. Under takings theory, this meant thatcourts could demand proof that legislative programs adverse-ly affecting property actually worked. Hawaii’s “state interest”in the law was to lower fuel prices at the pump; somethingthis statute failed to advance.

Expressing misgivings over a theory that allows courts tosecond-guess legislative decisions, a unanimous SupremeCourt, with retiring Justice O’Connor writing the opinion,changed the relevance of the “substantial advancement” the-ory, and now courts must give the benefit of any doubt to thelegislature.

Although this is a significant loss for private propertyrights, numerous other causes of action to force the govern-ment to pay for the taking of private property still remain, itstill allows landowners to prove—with a higher burden ofproof—that land use regulations have no rational basis.

To understand the second case, San Remo Hotel v. SanFrancisco, a bit of court history is necessary. Back in 1985, thecourt held that landowners who want to bring federal takingsclaim in federal court must first bring a state law claim in statecourt. In San Remo, however, the 9th Circuit held that once alandowner finishes up in state court, he cannot bring a feder-al claim in federal court when the state decision involves sim-ilar issues.

In states like Alaska this can be devastating since statecourts have a long history of allowing government to passregulations that take the value of private property withoutbeing forced to pay compensation. Moreover, a landownerwho files but loses a takings claim may have to pay the stateor local government’s attorneys fees in Alaska. By a slim 5 to4 vote, the Supreme Court affirmed the 9th Circuit, and madeit nearly impossible for a landowner to bring a federal takingsclaim in federal court. All is not lost, however, as some mem-

bers of the court suggested it might be time to revisit the orig-inal 1985 decision.

The third, and most infamous case, Kelo v. New London,created a massive public furor.When the City of New Londonsaw an opportunity to generate additional tax revenue, it usedeminent domain to take a small but well-kept neighborhood,handing the land over to a mall developer. When Mrs. Kelosued, New London justified its actions saying that theincreased tax revenue generated by the mall was a sufficient“public purpose” to justify condemning her neighborhood.

By a narrow one-vote margin the Supreme Court’s liberalfaction accepted this justification and gave New London, andany other similar agency, the freedom to take entire neighbor-hoods and sell or give the land to private developers, simplyto collect more taxes.

If there is any good news in this decision, the mediafirestorm it created has put the issue of property rights frontand center before the public. State and local politicians arefalling all over each other to be the first to support “privateproperty rights.” We aren’t quite sure how long this conver-sion will last, but we will take whatever good news we can.

So has this been a “storm?” Perhaps. But it was no “per-fect storm.” From these difficulties are coming a number ofpotentially positive outcomes. For example, after Lingle,Pacific Legal Foundation and other property rights advocateshave redoubled the effort to strengthen other legal theoriessupporting property rights. Even as the San Remo decisionwas delivered, the narrow margin and strong dissenting opin-ion gave indications of where future efforts to seek justice infederal courts should be focused.

As for the Kelo decision, the volume of media attentionand number of state law changes being contemplated in itswake may turn a Supreme Court loss into a net gain for pri-vate property rights on a state and local level.

Future vacancies on our nation’s highest court, both cur-rently known and as yet unannounced, will shape futureenvironmental and property rights law. Regardless of whomakes the appointment, Pacific Legal Foundation will notslack its resolve to win crucial property rights victories at allcourt levels.

James S. Burling, Principal Attorney, worked and lived inAlaska in the 1980s as an attorney for Pacific Legal Foundation.He is one of only a few attorneys to have successfully argued aproperty rights case before the U.S. Supreme Court.

Pacific Legal Foundation

By JAME S. BURLING

The Perfect (LEGAL) Storm



BY PATRICIA LILES

EEvolution and modernization of the nation’s defense forcehas created significant changes at Alaska’s military installa-tions, resulting in substantial infrastructure investments andincreasing construction budgets.

Thanks to these changing missions for Alaska-basedtroops, construction spending at Alaska’s military installationsincreased in 2005 compared to recent prior years, and willcontinue to maintain or slightly exceed these spending levels,according to Greg Smith, chief of the military program andproject managementbranch for the U.S. ArmyCorps of Engineers inAlaska.

“This year, our con-tracts that we’ve awardedor expect to award willtotal a little over $400million,” he said, of thefiscal year 2005 that con-cluded on Sept. 30. “Lastyear, we awarded about$300 million and the yearbefore, about $180 mil-lion.”

Average annual con-struction budgets at theCorps related to the mili-tary in Alaska typicallyrange around $200 mil-lion, Smith said. “We seespikes like this periodically … this year’s Army program iswithout a doubt the largest program we have.”

Stryker fuels increaseThe increase can be attributed to development of a Stryker

brigade in the U.S. Army Alaska, with most of those quick-response soldiers based at Fort Wainwright in Fairbanks. A

number of Army housing projects, linked with that change introop designation and its resulting increase in soldiers inAlaska, contribute to the military construction budgetincrease, Smith said.

Anchorage-based Neeser Construction is working tocomplete one of those Army housing projects in the Fairbanksarea this winter, according to project superintendent BillWilliams.The project consists of building 30 houses, each withabout 2,500 square feet of living space, to be used for NCO

housing.“They’re real nice

units—very well builtwith a nice design—as faras military housing goes,they’re right at the top. Iwould be happy to live inthem,”Williams said.

Housing projects onmilitary installations areequipped for future dura-bility as well as the cur-rent expense of thestructure and materialsused, Smith noted. “Theconsideration we put intothe houses is not only ini-tial cost but the mainte-nance and repair life cycleconsideration,” he said.“For example, solid

counter surfaces may be cheaper in the long run to maintainthan other kinds of surface.”

The two-story homes are part of a new subdivision beingbuilt on Fort Wainwright, part of the post’s efforts to expandand accommodate the new Stryker brigade.

In addition, Neeser is working on three other construction

More than 140 New Orleans evacuees onboard a C-17. These victims of floodingcaused by Hurricane Katrina flew to Austin, Texas, where they were given food,fresh water and a place to sleep.

PHOT

O:1

STLT.

NEI

LSE

NKO

WSK

I,U.

S.AI

RFO

RCE

Eight Boeing C-17 Globemaster III aircraft are coming to Elmendorf Air Force Base in2007 to support the Stryker Brigade concept, Army Transformation mission and

other joint missions. With a payload of 160,000 pounds, the C-17 is designed to fulfillchanging airlift needs including carrying troops and heavy, oversized cargo.

PHOTO: STAFF SGT. MITCH FUQUA, U.S. AIR FORCE



contracts at Fort Wainwright, part of thefirm’s first work in the Fairbanks area,Williams said.

Those military construction con-tracts include construction of a morethan100,000-square-foot pallet-pro-cessing building, part of the Strykerbrigade’s infrastructure allowing rapiddeployment of the specialized equip-ment. “The building is a really largeshell, nothing unusual, but once you’reinside the building, there are a lot of dif-ferent mechanical devises and thingsthat are pretty unusual,”Williams said.

Neeser is also working to constructa headquarters building and a large bar-racks project at Fort Wainwright. Thefour contracts total more than $50 mil-lion in work for Neeser at the InteriorAlaska military post, Williams said.

Work continues at Fort Wainwrighton the Bassett Hospital Replacementproject, a $178 million contract awardedto partners Dick Pacific and Fairbanks-based GHEMM Co.

The new medical center will offer alittle more than 500,000 square feet ofspace, according to GHEMM’s presi-dent Bert Bell. Most of the building willbe two to three stories in height,although in some places, a total of fivestories are being built.

Work began on the project in mid-2002.The project should finish ahead ofschedule, possibly in January 2006, Bellsaid.

C-17 facilitiesIn addition, work is ramping up in

the Anchorage area to prepare for theC-17 cargo squadron being moved toElmendorf Air Force Base, designed tooffer air support for the Stryker brigademission.

Along with its team of RimArchitects, HZA Engineering and engi-neering firm Michael Baker Jr. Inc.,Palmer-based Weldin Construction wonthe bid to design and construct the firstof several C-17 Flight Simulator pro-jects being planned at Elmendorf.

The official ground breaking cere-mony was held in May, and actual con-struction began in July after the finaldesign was approved, according toJennie Weldin.The project is to be com-pleted in July of 2006. The $6.99 millioncontract includes construction of a14,000-square-foot facility that willhouse C-17 Flight Simulators.



“We understand it is the first in a ‘campus’of flight simulatorsto be constructed at Elmendorf Air Force Base over the next sev-eral years,” Weldin said. “This particular facility has highly tech-nical communications requirements, as well specific humidityrequirements. We have a full-time senior project manager on sitefor the duration of the project, as well as a project specific quali-ty control manager and contract administrator, in addition to thefield workers and subcontractors. Weldin is performing the civilsitework, underground utility installation and all electrical,mechanical and HVAC with its own employees.”

Other large Elmendorf contracts recently issued by the ArmyCorps of Engineers include the Large Airframe MaintenanceHangar and C-17 Support Utilities job, a $29 million projectawarded in late June to Kiewit Construction Co., and adesign/construct project for a physical fitness center totaling $17million to Unit Company.

A design/construct project for a C-17 Aircraft MaintenanceComplex valued between $73 million and $78 million is expect-ed to be issued by the Corps of Engineers later this fall.

BRAC effectsStill unknown is the impact to future military construction

work from recent decisions by the Base Realignment andClosure Commission. In late August, the commission membersvoted to close Air Force facilities at Galena, a Yukon River village,a move estimated to save the military $165 million over the next20 years.

Also in late August, the BRAC commission revised a planoffered by top military leaders to move a total of 36 fighter jets

Officials broke ground May 19, for the C-17 Flight Simulator Facility,scheduled for completion in 2006. From left, Col. Christopher Thelen,Air Force 3rd Civil Engineer Squadron commander; Col. TimothyGallagher, U.S. Army Corps of Engineers, Alaska District commander;Brig. Gen. Michael A. Snodgrass, Air Force 3rd Wing commander;Richard Weldin, president of Weldin Construction Inc.; Lt. Col. ThomasBrowning, Air Force 3rd Operations Support Squadron commander.

PHOT

O:P

ATRI

CIA

L.RI

CHAR

DSO

N,U.

S.AR

MY

CORP

SO

FEN

GIN

EERS

,ALA

SKA

DIST

RICT



and close air support aircraft fromEielson Air Force Base, leaving onlyAlaska Air National Guard refuelingtankers at the Interior Alaska base.Rather than reducing Eielson to“warm” status with seasonal trainingusage, the commission members rec-ommend that the base be kept openyear-round and that only the 18 A-10“Warthog”aircraft be moved to a Lower48 base. The move of the A-10 aircraftfrom Eielson is estimated to cause relo-cation of up to 500 personnel, far lessthan the estimated 2,800 airmenexpected to leave the Interior Alaskabase under the original plan.

According to an Alaska Departmentof Labor report issued in August 2005,reducing Eielson to the “warm”realign-ment status could reduce the FairbanksNorth Star Borough’s employment by“well over 10 percent.”

“The Department of Labor not onlyanticipates higher job losses but assess-es the Fairbanks’ employment base asbeing smaller than do BRAC analysts,”wrote Brigitta Windisch-Cole, a stateeconomist, in the August 2005 issue ofAlaska Economic Trends. “Most local

economists agree that Fairbanks’ econ-omy would suffer greatly if the realign-ment becomes a reality.”

The BRAC commission also voted inlate August to move aircraft from KulisAir National Guard Base acrossAnchorage to Elmendorf, and to trans-fer 24 F-15 fighter jets from Elmendorfto several different locations in theLower 48.

How these mission changes willimpact military construction budgetswill shake out late this year, accordingto Smith, at the Corps of Engineers.Earlier this year, his staff stopped plan-ning work for future construction pro-jects that could be affected by BRACdecisions.

“We expect to know by December,”he said. “We’re real happy to hearthere’s been a change in the BRACcommission recommendations.”

The commission recommendationsstill face presidential and Congressionalreview, a process expected to be com-plete later this year.

Strong budgetWithout considering any changes

due to the BRAC commission, Alaska’s

Cornerstone Construction expects to completethe Air Traffic Control Tower and ModifiedRenovation of Building 100, Fort Greely,Alaska, in December 2005.

PHOT

O:C

OUR

TESY

OF

CORN

ERST

ON

ECO

NST

RUCT

ION



A July 29 ribbon-cutting ceremony and openhouse marked completion of the $13.7 millionCommunity Education Complex on FortRichardson, a design-build project awarded toNeeser Construction Inc. by the U.S. Army Corpsof Engineers in 2003. The facility has approximately 50,400 square feet of floor space,470 tons of steel and 20,000 cubic yards of con-crete. There were no lost time accidents duringconstruction, which required more than 86,000man-hours and 17,000 equipment hours.

PHOTO: PATRICIA L. RICHARDSON, U.S. ARMY CORPS OF

ENGINEERS, ALASKA DISTRICT

military construction budget shouldremain strong in the near future.Estimates for the 2006 fiscal year indi-cate a slight increase in constructionspending compared to 2005, Smithsaid. The total year’s budget is estimat-ed to be “probably in the neighborhoodof $450 million. In the fiscal year 2007,we expect to stabilize … it looks like itwill be as busy as 2006, probably in the$400 million to $450 million range.”

Despite the recent increase in con-struction projects at Alaska’s militaryinstallations, Smith’s design and man-agement staff has increased only slight-ly, he said.

“We have a lot of reliance on ourcontractors,” he said. “Over the last fewyears, we’ve developed some realstrengths in these relationships. Thecontractors are very competitive in get-ting these contracts so we have putmore reliance on better contractingtools to award these contracts withouthaving to provide a lot of staff.”

Design-Build shiftShifting more projects to the

design-build process of delivery hasalso helped, Smith added. “We have

some fantastic Alaska contractors thatdo both the design-bid-build anddesign-build, so we have minimized theout-of-state contractors from comingin. As a long-time Alaskan, I reallyappreciate keeping our work withinAlaska.”

Alaska offers military constructionplanners some unique challenges. Inaddition to designing structures to offerprotection from frigid Arctic winters,seismic conditions must also be fac-tored in, Smith said.

“A lot of work goes into foundationsto protect facilities and occupants fromserious earthquakes,” he said. “We alsotry to focus shapes and orientation ofbuildings to maximize sunlight.”

The Corps is working “very longhours” to initiate projects for futureyears, particularly in 2007 and 2008,Smith said. “We’re working with thedesign teams and getting constructionplaced as quickly as possible. The Armytransformation is moving very quicklyso speed is very important to us.”

Patricia Liles is a longtime journalistwho covers Alaska business and industry

issues. She works outside of Fairbanks.



AAs airport officials and designers gear up this winter forseveral big-ticket projects expected to begin spring 2006, theproject manager hired for one of the largest at Ted StevensAnchorage International Airport, a $90 million seismic safetyupgrade and general facelift of the A and B Concourses span-ning several years, said he’s looking forward to getting toknow the local contracting community from which he’ll beseeking subcontractors.

“We will most definitely be seeking qualified subcontrac-tors on this project,” said Scott Ivany, project manager repre-senting PCL Construction, an Outside firm that won atentative contract in mid-August and was formalized inSeptember designating PCL as the construction manager atrisk. “We are going to bereaching out to the Alaskacontracting community andseeking to establish relation-ships with Alaska firms asour partners in completingthis project.”

Under terms of the con-struction manager at riskcontract with the state, Ivanysaid PCL can perform up to20 percent of the actual workitself. But he expects his com-pany to do far less than that –perhaps even less than 10percent – as he focuses moreon the role of managing theproject.

“We are not going to gob-ble up the scope of this workjust to say that we did it,” Ivanysaid. “There certainly are some aspects of this project that arebeneficial for us to self-perform, but the majority of it falls inthe category of seeking local contractors who can get thework done much more competitively than we can and thoseare the folks we want to work with.”

That’s perhaps an indication of things to come for theAlaska construction industry as the state opts more and moreto employ the manager at risk contracts, which require thegeneral contractor selected to provide an up-front cost leav-ing the contractor, not the state, responsible for cost overruns.

It is a particularly sensitive topic at the airport where thespiffy $240 million Concourse C home to Alaska Airlines thatopened more than a year ago was constructed with just aboutas many cost overruns and delays as there are shiny glasspanels in its walls.

Avoiding cost overruns via the construction manager atrisk format is how the new 182,000 square foot Eagle RiverHigh School, which opened its doors to students this schoolyear, was built by the folks at Davis Constructors andEngineers with 25 percent of the work being self-performed.

At the school’s ribbon cutting ceremony in August, con-struction, state and school officials gleefully celebrated its

opening as being“on-time and underbudget.”

Kyle Randich,president of Davis,said he liked workingunder the manager atrisk format. He thinksit will be a beneficialtool in completing theairport’s seismicupgrade project.

“Under the con-struction manager atrisk you get the con-tractor on board early

on working with the design team as the project develops,”Randich said. “Instead of the owner, the designers and thecontractor being separate entities doing their own thing, youget the opportunity to really work together as a team.”

Randich said it gives cost-conscious contractors an extraedge in assessing the project’s financial aspects.

Scott Ivany, project manager,PCL Construction demonstrates thebracing structure ofseismic building.

PHOTOS: AMY M. ARMSTRONG

in works for airportby Amy M. Armstrong



Officials at Fairbanks International Airport have stoppedwork there for the winter season.

Two projects roughly $9 million a piece were in the worksduring the 2005 construction season, said Alan Braley, FIA air-port engineer.

The first, a phase three drainage improvement and pave-ment rehabilitation project that included building two de-icing aprons and relocation and reconstruction of a portion ofthe primary parallel taxiway, in its second construction seasonfor 2005 was scheduled to be completed this fall by ExclusiveLandscaping and Paving Inc., of Fairbanks.

The second project started this past season also byExclusive – the taxiway Alpha phase two that includes relocat-ing the rest of the primary parallel taxiway and upgrading itfor use as the alternate runway in 2008 when the primary run-way is slated to be upgraded – was about 80 percent completeby fall.

Braley anticipates work to begin on that again in May.Exclusive is self-performing the majority of the work,

Braley said, with appropriate subcontractors for painting, seal-ing and electrical work.

Airport officials are currently in the design phase withCharles Bettisworth and Company Inc., of Fairbanks, for anew air terminal expected to be worth $40-$60 million.

Similar to the state’s move to complete seismic upgradework at Ted Stevens Anchorage International Airport, a con-struction manager at risk contract will be employed for the100,000-square-foot addition that includes gate upgrades on

the air side and roadway and parking improvements on theland side, Braley said.

That type of contract is new territory for Braley, who saidhe likes the idea that the construction manager would beassisting through the design process.

“Primarily I like having a contractor on board that is ableto anticipate what the impacts are going to be during con-struction and be able to discuss those with designers and withthe state before the contract to build itself is actually estab-lished,” Braley said.

He thinks there may be some Fairbanks or Anchoragecontractors with enough bonding strength to carry the largeproject. But he also anticipates the size of the project willattract some Outside interest. He expects state airport officialsto make their selection for a construction manager at risk bythe year’s end.

In the meantime, Braley said design work is through theconceptual phase and on schedule. He expects the first phaseof the terminal project to begin this summer with civil sitepreparation work that he believes could be accomplished bylocal firms as subcontractors.

RISE Alaska of Anchorage has been contracted for aboutfive months now to provide program management services.

Another large project for FIA, the construction of a newheavy aircraft cargo apron anticipated to be in the $10-$20million range, has just entered the design phase with R&MConsultants Inc. of Anchorage, Braley said.That project will beachieved via the traditional design, bid, build model.

CONSTRUCTION AT THE FAIRBANKS INTERNATIONAL AIRPORT



“Everyone is aware of the financialaspects as you go along,” he said. “It ismuch better that decisions are madebased on how it impacts the wholeprocess.”

For subcontractors, Randich said theconstruction manager at risk formatdoesn’t alter the process of winningbids a great deal.

“It’s not really any different for thesubcontractors than under a competi-tive bid process,” Randich said.

The general contractor is still look-ing for price, schedule and perform-ance factors. But unlike the competitivebid process, the construction managerat risk format gives the general con-tractor an ability to take some extra

time while selecting which bids to pur-sue, Randich said.

“With the Eagle River High Schoolproject, we were really able to thor-oughly review our subs and analyzewhat really was the best for the projectinstead of just having to go with the lowbidder,” he said.

That’s information Ivany said he canuse as he proceeds with the at risk for-mat – one he’s experiencing for the firsttime, he said. He knows he’s got somepublic relations work to do with thelocal contracting community. He recog-nizes there might be some hard feelingsthat an Outside firm won the top spotwith some a high profile project.

“We are here to work with alreadyestablished Alaskan firms,” Ivany said.“PCL is looking to establish a long-term presence in Alaska. We welcomefolks to come kick our tires and try usout. We know there have been otherfirms come up here for only one projectand then leave. But that is not ourintention.”

Randich said it’s always a tough pillfor the Alaskan contracting communityto swallow when an Outside firm winsa big one like the seismic work at theairport.

“We are a proud bunch, proud ofour crews and as a general rule we don’tlike people from the Outside coming inand doing our work,” Randich said. Buthe isn’t fuming over the state selectingPCL. “Unfortunately with the size ofthat project and the complexity of theproject plus the incredible amount ofwork going on in the marketplace right

MORE PROJECTS LINED UP AT THE ANCHORAGE AIRPORT• Pavement rehabilitation and drainage systems upgrade for taxiway K from its

A-C intersections is pending award to Quality Asphalt Paving Inc. of Anchoragewith its low bid of $11.8 million, said Eberle.

• Echo Parking tie-downs phase two and Aircraft Drive Realignment estimated atabout $3.6 million, which will expand aircraft parking and eliminate the currentcrossing of vehicular traffic across the taxiway, is expected to go to bid inDecember 2005.

• Pavement rehabilitation and widening of the taxiway K and Y intersection val-ued at about $1.8 million is also expected to go to bid in December. This pro-ject runs in conjunction with the second phase of the remote refueling apron tobe located between the North Terminal and the FedEx terminal. The project isestimated at $4.4 million and includes three apron spots – one 747 and twoA380s - on the southeast corner of taxiway U and taxiway R.

• Pavement rehabilitation worth $4.2 million on taxiway R to east end.PHOTO: SUSAN HARRRINGTON



now, that limited a lot of us from beingable to really go after it.”

He suspects Ivany’s prediction thatless than 10 percent of the airport workwould be self-performed by PCLshould come true.

“They naturally are going to bemore like a manager,” Randich said.“They don’t have a workforce up hereand they are new coming into our mar-ket. I would envision a lot more of theproject will be subbed out versus selfperformed.”

That’s the message Ivany wants toget out to Alaskan contractors. He wel-comes invitations to speak at organiza-tional gatherings. He welcomes folks tostop by his office at the airport. Hewants to find out who is available andhas what specialties and he plans tomake early announcements of pre-bidmeetings so subcontractors have plentyof notice to work attendance into theirschedules.

He is just getting his feet wet on theAnchorage airport project.

“I’m still becoming familiar with theparameters of the project,” Ivany said.

Dave Eberle, construction project

manager for the Ted Stevens AnchorageInternational Airport, said state officialschose PCL Construction because of thefirm’s strong track record in airportprojects.

PCL Construction has been a largeplayer in the North American construc-tion industry since 1977. Its 1,400employees own the company with itscorporate offices in Edmonton, Alberta,Canada, its U.S. headquarters inDenver, and offices in 17 NorthAmerican cities, including Seattle, thedistrict headquarters for Ivany andAlaska operations.

PCL currently is heading up the$1.5 million expansion of the TorontoPearson Airport in Toronto, Ontario,Canada. Other active Canadian airportprojects include modification of thetrans-border baggage reclaim area inthe air terminal at Calgary Internationalin Calgary, Alberta, and the air terminalexpansion at Halifax International inHalifax, Nova Scotia.

PCL also just recently completedthe high profile $38 million rental carcanopy at Denver International Airportin Denver.The two-year project paid for

by the rental car companies used atranslucent Teflon coated fabric to coverthe entire fifth level surrounding theterminal building.

Ivany’s 13 years of constructionmanagement includes running his ownfirm in Ohio before joining PCL. Sincethen, he was the project manager forthe $11.48 million 798,000 square feetmid-field air terminal project atSouthwest Florida International Airportin Fort Myers, Fla., which added 28 air-craft gates along three concourses withexpansion potential up to 65 gates total.The new terminal project, which is oneof the first constructed post 9/11,involved 5,000 auger-cast piles to sup-port the new terminal, a three-storyparking garage and an upper levelroadway. Most recently he worked on afive-star hotel in Savannah, Ga.

The Anchorage project marksIvany’s first experience with the state’snew manager at risk format, but he sayshe’s game and can already see someadvantages.

That was part of the reason PCLwas selected for the project, said Eberle.

“Having the contractor on boardimmediately for the design process willbe much more cost effective because hecan be looking right over the shoulderof the designers and giving input fromthe contractor’s perspective,” Eberlesaid. “As a contractor, then you are notjust picking up plans without any previ-ous knowledge.You go into the projectmuch more aware of its nuances and

Dave Eberle, construction project manager forthe Ted Stevens Anchorage International Airport.

PHOT

O:A

MY

M.A

RMST

RON

G




Further south in Juneau, airport offi-cials anticipate an extremely light con-struction season for 2006.

“Next year is going to be a slowyear, but the year after that, we antici-pate we will be overwhelmed with pro-jects,” said Allan Heese, JuneauInternational Airport manager.

That’s because two large projects –a $9-$18 million runway safety upgradeand a $15 million 40,000-square-footsnow removal equipment storage facil-ity to include storage for up to 5,000yards of sand and other de-icing chem-icals plus fueling and wash racks – arecurrently under environmental review.

Heese said he hopes the finalEnvironmental Impact Statementreviews and record of decision will beregistered by the start of 2006 so air-port planners can move into the designphase.

These projects would be designedover the 2006 season with proposedconstruction beginning in 2007.

Funding for a $5 million 14,000-square-foot terminal expansion toaccommodate new security screeningmandated post 9/11 is on the city’sOctober ballot, Heese said.

Should the voters approve the pro-ject, Heese said the city will employ adesign, bid, build format.

PHOT

O:S

USAN

HARR

ING

TON

PHOT

O:K

AREN

COPL

EY

JUNEAUINTERNATIONAL

AIRPORT PROJECTS



you hopefully have been able to helpminimize any surprises when the actu-al construction begins.”

Currently Ivany and PCL are serv-ing as pre-construction contractors,Eberle said.

That relationship will be redefinedonce the project gets through thedesign phases currently ongoing,Eberle said.

RIM Architects of Anchorage arethe prime designers. RIM officials andIvany will also be working with PeterWright of Parsons BrickerhoffConstruction Services in Anchoragewho has been identified as the project’sprogram manager to oversee designand the bid process.

Ivany expects the seismic upgradeproject, which essentially involves rais-ing the roof on the A and B terminalsseveral feet, installing support systemsthat meet seismic qualifications, to becompleted in several phases – perhapsthree to four.

He won’t know until designers fin-ish their work later this winter, but hedoes expect to be putting out bid pack-ages either in the late second quarteror early third quarter of 2006 for thefirst phase.

He’s still reviewing state-mandatedbid procedures and hopes he’ll beasked to speak on that subject at per-haps a contractor’s association meetingearly next year.

A 2004 seismic study of the A and BConcourse found that the B Concoursewould most likely not withstand a sig-nificant earthquake, Eberle said. Thatdelayed fixing the dungeon-like imageof the A and B Concourses, which werescheduled for facelifts during the sametime the new C Concourse was built.

“There certainly is a stark differ-

A 2004 seismic study ofthe A and B Concourses

found that the B Concourse would most likely not

withstand a significant earthquake.




ence when you walk over from the CConcourse to the B Concourse,” Eberlesaid. “We want to get rid of the darkdull colors and get something brighterin there.”

Letting natural light into the BConcourse will be achieved by addingglass walls when the roof is raised,Eberle said.

Other improvements to look for inthe seismic upgrade project includebringing mechanical and electrical sys-tems up to code.

“Codes have changed so muchsince that was first built,” Eberle said.“We really need to look at airflow andventilation. We might not be able to doit all at once. It may have to be asequential thing over time.”

Perhaps the biggest challenges PCLand subcontractors the companychooses for the seismic upgrade facewill be the airport itself, Eberle andIvany both said.

“It does sound a bit dangerous. Wehave to raise the roof two feet with thepublic potentially underneath at timeswhile keeping the airport in operation;we have to do this work while the jetbridges are being used,” Ivany said.“We are going to need subcontractorswho can handle those types of require-ments.”

For information regarding PCLConstruction, visit the firm’s Web site atwww.pcl.com. To learn more about sub-contracting opportunities with the seis-mic upgrade at the airport, contact Ivanyat [email protected].

Glen Fuglestad, a state project manager,shows the roof will be raised in the A andB Concourses to make room for seismic stabilizing structures, new HVAC and translucent walling for more natural light.

PHOTO: AMY M. ARMSTRONG


AGC Invitational GolfScramble, Anchorage

3rd Place Steve Lovs, ANCHORAGE SAND & GRAVEL CO. INC. (far left)Mark Palmatier, CORNERSTONE CONSTRUCTION INC. (second from left)Evelyn Taylor, DOOR SPECIALTIES OF ALASKA INC. (center)Lee Van Horn, DENALI ALASKAN FEDERAL C.U. (second from right)Mike Miller, CONSTRUCTION MACHINERY INDUSTRIAL (far right)

4th Place Robert Brossow, JACKOVICH INDUSTRIAL & CONSTRUCTION SUPPLY INC. (far left)

Ben Northey, GOODFELLOW BROS. (second from left)Christopher Shock, ALASKA QUALITY PUBLISHING INC. (center)

Ron Moore, LYNDEN TRANSPORT INC. (second from right)Steve Sommerfield, ALASKA PURE WATER PRODUCTS (far right)

1st Place Made Up Team

INDEPENDENT LIFT TRUCK OF ALASKA

PHOTOS COURTESY OF JUDY MONTGOMERY

18th Annual

2nd Place Don Hansen, NORTHLAND SERVICES (far left)

Nick Karnos, NORTHERN AIR CARGO (second from left)Gary Peterson, GPARCH ARCHITECTS (second from right)

Schroyer, PACIFIC ALASKA FORWARDERS INC. (far right) Brian Horschel, ACME FENCE CO. (not shown)

1st Place Joel Parmenter, WILDER CONSTRUCTION COMPANY (far left)Hal Ingalls, DENALI DRILLING INC. (second from left – in hard hat)Nelson Stone, ACME FENCE CO. (center)Mike Harned, ANCHORAGE SAND & GRAVEL CO. INC. (second from right) Jim McLeod, CONSTRUCTION MACHINERY INDUSTRIAL L.L.C. (far right)

Last Place David Nevin, THINC L.L.C. (far left)Dale Curtis, UNITED RENTALS INC. (second from left)Jeff Bristow, CONTECH/CULFABCO (second from right)Dick Engebretson, AURORA CONSTRUCTION SUPPLY CO. (far right)Mike Swalling, SWALLING CONSTRUCTION CO. INC. (not shown)



1st PlaceJoe Wenger, (far left)Dave Benefield, (second from left – holding trophy)Frank Torres, (center)Sam Wenger, (second from right) John Wenger, (far right)

3rd Place Jerry Back, (far left)Amos Johnson, (second from left)Mike Travis, (center)Larry Peterson, (second from right)Ryan Peterson, (far right)

4th Place Steve Boyd, (far left)

Tom Minder, (second from left)Scott Bringmann, (center)

Jeff Bristow, (second from right)Kelly Richards (far right)

Crying TowelsJason Feeken, (far left)Sam Mazzeo, (second from left)Mike Wheatley, (center)Matt Brice, (second from right)Kevin Walsh, (far right)

2nd PlaceElaine Nisson, (far left)

Jesse Vanderzanden, (second from left)Amy Cook, (center)

Norm Phillips, (second from right) Ginger Stock-McKenzie, (far right)

FAIRBANKS AGC Golf Tournament

All profits go to the AGC/UAF studentchapter scholarship

fund

FAIRBANKS Golf & Country Club

PHOTOS COURTESY OF JENNIFER TOWLER

sponsored byALASKA MECHANICAL, INC.

sponsored by TRAVIS/PETERSONENVIRONMENTAL CONSULTING, INC.

sponsored byALASKA CHAPTER

NECA

sponsored byWELLS FARGO

sponsored byNORTHERN AIR CARGO

26th Annual

The teams relax aftera sunny day of golf.




DDegree-wielding grads with skills critical for success inconstruction management will be looking for jobs nextspring. A handful of Alaska contractors will have the oppor-tunity to hire the first Construction Management graduatesfrom the University of Alaska Anchorage program, whichbegan its second year this fall. Last spring the program had 55students enrolled in classes, with 25 declared majors and aninitial capacity for 50-60 students.

Enrollment projections of just 15-20 students for academ-ic year 2005 and 30-35 students each academic year 2006through 2008 were greatly underestimated. The fall 2005enrollment included 34 declared majors in a field of 60 stu-dents taking construction management classes, which were95 percent full.

Students enrolled in the program will gain broad-basedexposure to elements of the con-struction industry, a knowledge baseto build on and areas of interest toexplore, according to Ben Northey,advisory board member and con-struction manager for Colaska.

Student demographicsAssistant Professor Jeffrey

Callahan, who heads up the con-struction management faculty, sayssubjectively, about two-thirds of thefirst year students were male andone-third female, mostly in their 20s,with a mix of non-traditional stu-dents between 19-20 years old and 45 years old. Some werestraight out of high school, but most were involved in someaspect of construction already. He wants to increase the pur-suit value of the program among graduating seniors inAlaska—so does the AGC.

“This program will appeal to Alaskans because they arethe salt of the earth,” Northey said. “They’ve grown up inAlaska—outside. They know and love Alaska and we want

them to stay. Logistics are huge in construction. They knowwhere the Dalton and Steese highways are, they understandthe weather in the winter, they know where roads are—andaren’t.”

Internships Northey says the program will help keep kids in Alaska

who have an interest in the construction industry and untilnow have had to go out of state for education, with many notreturning after graduation. Some do return in the summersfor internships, which the UAA program requires.

Callahan says students arrange their own internships,although word of mouth and bulletin board postings helpmatch students with employers. Once the student andemployer have an employment agreement and enroll in the

class, learning objectivesare set up and tracked.Many internships leadto later employment.

“An internship is theextended interview,”Northey said.

Human ResourcesCoordinator for theAlaska Division ofWilder ConstructionSara Gould agrees.“Internships are a greatopportunity to test-driveyour career—really great

for the intern and really great for us,”she said. Wilder hired 13interns for the summer after a coordinated effort between theWestern Division in Everett, Washington, and the AlaskaDivision here in Anchorage.This year, they also recruited at anestimating and bidding competition in Reno.

Gould says that most Wilder construction managers havefour-year degrees, although some don’t, and most of theirinterns are sophomores and juniors, except they have hired

Jeffrey Callahan heads up UAA’s Construction Management program.

PHOTO: JASON CROCKETT, COURTESY OF WILDER CONSTRUCTION CO.

By Susan Harrington

Wilder Interns tour Central Paving Plant Anchorage.



freshmen from UAF. “Interns learnvaluable job skills, a lot of behind thescenes work including planning, timemanagement, budgeting, the paper-work required, organization, job costs,coordination of a job and all the dailyactivities. They learn what it is to workin this field, the construction industry.”

Wilder intern BenjaminRadoslovich is completing a Bachelorof Science in ConstructionManagement at Central WashingtonUniversity in Ellensburg, Wa. Whatsurprised him most as an intern was“the amount of office time it is for thepart of the engineer—probably 70-80percent.” One of the most significantthings he learned was “how muchwork goes into putting in a road. A lotof people don’t realize how intense itcan be, and think you just clear it offand put down some pavement.”

Internships offer students theopportunity to apply the knowledgelearned in classes to real world situa-tions on the job site. Gould said theconstruction management coursesoffered through UAA look promising.

The UAA construction manage-ment program is being offered throughthe Community and Technical Collegein conjunction with the architecturaland engineering technology program,which teaches entry-level skills forarchitectural, civil, mechanical, electri-cal and structural computer-aided

PHOT

O:J

ASO

NCR

OCK

ETT,

COUR

TESY

OF

WIL

DER

CON

STRU

CTIO

NCO

.

Wilder Interns climb the ladder of success.



design and drafting as well as 3-Dmodeling and rendering.

Shared resources The two programs share resources

including facilities, courses and faculty.Program-specific courses are taught atthe University Center, utilizing the AETclassrooms and labs. Six courses arecross-listed to both programs and sixcourses are specific to the constructionmanagement program, which is moreinterdisciplinary in nature. Several coreclasses are taught in three back-to-

back, five-week blocks each semester.“The block method enables prereq-

uisites to be done in order, allows theschedule to be compressed somewhatand gives students a lot of time to workin the labs—plus students tend to likeit,” Callahan said. “I think you’ll seemore programs going that way. It givesstudents more flexibility in their sched-ule.”

The five-week courses run Mondaythrough Thursday, and students havethe option of a morning or an afternoon

block, which frees up half a day forother required courses.

Faculty Callahan heads up the faculty for

the construction management pro-gram. His primary background includes27 years experience in the constructionindustry. Callahan said he came upfrom the trades, starting out as a car-penter and later became a superintend-ent, then a project manager. He spentthe last five years of his career in theindustry as an owner’s representative

CONSTRUCTION MANAGEMENT CORE CLASSES REQUIRED

• Fundamentals of CADD for

Building Construction (AET)

• Methods of Building Construction (AET)

• Codes and Standards (AET)

• Mechanical and Electrical Technology (AET)

• Building Construction Cost Estimating

• Construction Project Management

• Civil Technology (AET)

• Structural Technology (AET)

• Project Planning and Scheduling

• Construction Safety

• Civil Construction Cost Estimating

• Construction Management Internship

Additional degree requirements

• College Algebra

• Trigonometry

• Principals of Financial Accounting

• Principals of Managerial Accounting

• Basic Physics & Lab

• Fundamentals of Oral Communication

• Methods of Written Communication

• Technical Writing



for the North Slope Borough. He is cer-tified by the ConstructionSpecifications Institute as aConstruction Contract Administratorand Construction DocumentsTechnologist. He started teaching in1999 and immediately went throughthe AET AAS program at UAA, com-pleting 60 credits in two years—whileteaching and working.

Peter Dedych is new to the con-struction management faculty this fall,and brings more than 25 years experi-ence in the construction industry.Dedych graduated from Cornell with abachelor of science in mechanical engi-neering and from UAA with a master ofscience in math, and holds additionalindustry training and certifications.

Professor J. Ellen McKay graduatedfrom UAA with a Bachelor of Arts and aMaster of Science in vocational educa-tion. She has taught in the AET pro-gram 20 years—primarily architecturaland GIS engineering technology.

Brian Bennett graduated from theMilwaukee School of Engineering, andhas a background in civil engineeringand design graphics, and has taught

industrial arts and technology for 30years, with 20 years in higher educa-tion. He has been with the AET pro-gram at UAA for three years.

Callahan says McKay and Bennettboth have strong technology back-grounds and will teach the coursescross-listed with the AET program.Dedych and Callahan will focus on thecourses unique to the constructionmanagement program.

Adjuncts needed More instructors are needed in

addition to McKay, Bennett, Dedychand Callahan, who says they’d like tomaintain a stable of competent adjunctprofessors who want to make a differ-ence in their community and contributeto the vitality of the program.

“Let’s face it—adjuncts don’t makeany money—nobody does that as acareer,” Callahan said. “Adjuncts areexperts in the field doing that to con-tribute to the community. We want toput them in the classroom two nights aweek, and it’s something more for theirresumes.”

The more adjuncts who step up tothe plate the better prepared students

Responsibilities: This position isresponsible for teaching courses inthe Construction Management andArchitectural & EngineeringTechnology program. Teachingassignments are determined by col-lege needs and/or the individual’sbackground and experience andmay include day and evening class-es. Instructor is responsible foridentifying and meeting the needsof the students, contributing to cur-riculum development and maintain-ing up-to-date knowledge of subjectareas.The applicant must have theability to work effectively with col-leagues and students of variouscultural and socio-economic back-grounds. Source: www.uaa.alaska.edu Contact: Jeff Callahan (907) [email protected]

ADJUNCTS NEEDED



will be for work in the Alaska construc-tion industry, and the better equippedthe program will be for accreditation,which is essential.

AccreditationCurrently, the construction man-

agement program is accredited underthe umbrella of UAA through theNorthwest Commission on Collegesand Universities, which offers regionalaccreditation of postsecondary institu-tions and is recognized by the U.S.Department of Education and theCouncil for Higher EducationAccreditation. The NWCCU accredita-tion applies to UAA as a whole.

Additional accreditation for theconstruction management programwould come from the AmericanCouncil for Construction Education,which endorses programs in construc-tion science, management and technol-ogy. Currently 10 associate and 57bachelor programs are accredited byACCE. UAA could also join theAssociated Schools of Construction,which promotes construction educa-tion and has more than 100 member

schools, including some accredited byABET that focus on construction engi-neering.

Higher education for constructionmanagement has blossomed in theLower 48 over the last 10-20 years, andexperienced huge growth—from 10schools 20 years ago to more than 50degree programs now,” Northey said.“That really drives home the impor-tance of the program.”

Program history Northey says there has been a

growing frustration among generalcontractors over the last 10-15 years tofind and keep qualified people inAlaska—from intern engineers toproject managers. When companiescan’t get personnel here, they have tobe recruited from out of state and fewend up staying—after great expensefor relocation and training by thecompanies that bring them up—theconstruction management programgrew from that. “Gunderson peggedthe need, the labor shortage,” Northeysaid. “UAA has heard our cries andput this together.”

David Gunderson, who spent manyyears in the Alaska construction indus-try, co-authored a study in 2001 withthree UAA professors, which quantifiedand qualified the need for constructionmanagers with Bachelor of Sciencedegrees in the Alaska workforce.Upwards of 60 Alaska contractors wroteletters of support for the program.

“That’s what Alaska needs, theyneed that more complete constructioneducation to support the contractors,”Gunderson said.

The University of Alaska was pre-sented with an initiative from UAA inOctober 2001 to develop and offer aBachelor of Science in ConstructionManagement, either through theCommunity and Technical College orSchool of Engineering. In April 2002this was followed up with an initiativeto first offer an AAS degree, then a BSdegree. In January 2004 the Board ofRegents approved the ConstructionManagement Associate of AppliedScience degree.

Interim Provost Jan Gehler, whowas Community and Technical College




Alaska contractors identified and

ranked construction management

skills needed in the Gunderson

study as follows:

• Oral and written communication

• Planning and scheduling

• Estimating including quantity

and take-off and bid analysis

• Project administration and man-

agement including documenta-

tion at job site and office,

submittal review/processing ,

quality control procedures, and

computer applications.

• Decision making including analy-

sis of alternatives, cost/benefit,

return on investment, and net

present value

• Safety practices, compliance,

training, and records

• Accounting and cost control

• Construction methods and

materials including concrete,

steel, wood, and soils

• Logistics including material

management, transportation,

storage, and procurement

• General education including

humanities, social sciences,

math and sciences

• Business and construction law

• Drawing/drafting or CAD skills

• Environmental management

including haz-mat reporting and

training , EMS plans, and

response planning

• Civil and/or structural design

• Construction surveying

• Mechanical or electrical design

SKILLS NEEDED



Dean when the program began, saidthe university can’t do the bachelorprogram yet because of financial rea-sons so UAA is doing a two-stepprocess.

UAA two step“What we’ve got is a solid associate

degree that began last fall with 15 stu-dents, and by spring there were 55 stu-dents,” Gehler said. “We’re justbeginning the articulation track from a

two-year to a four-year program. Theidea is that after two years the studentschoose the pathway to either construc-tion engineering or construction man-agement.”

Bachelor degreeNorthey is passionate about Alaska,

the construction industry, and gettingthis program going. “We can’t stop attwo years,” he said. “We’re giving fullindustry support to see this through to

a four-year program.”AGC Training Director Vicki

Schneibel, also on the advisory board,has been involved in the program’sdevelopment since the beginning. Shesaid everyone involved in the DACUMprocess agrees it needs to be a four-yearprogram.

Callahan said they hope to have thebachelor program developed in 2006with the first classes offered inSeptember 2007—at the earliest—if

“How everything is written into contracts. All the liability,there’s always someone toblame. There’s a lot more goingon behind the scenes than you’dever know.” Dallas Sundquist

“Seeing how contracts gotogether and why certainproducts are used.“

Jeff Crouse

Students in Callahan’sConstruction Project Management

class were asked,

“What is the most significant thing youhave learned about

construction management?”




everything falls into place. That pro-gram could be offered through theCommunity and Technical College orthrough the School of Engineering.

“It comes down to more math orless math,”School of Engineering DeanRob Lang said. “We couldn’t complete-ly put our hands around it. We neverquite got there with the ConstructionManagement Bachelor of Sciencedegree.”

The School of Engineering did add

three new four-year engineering degreeoptions this year—mechanical, electri-cal and computer systems. They are allspecializations to the new EngineeringBachelor of Science, which Lang sayscould include construction manage-ment, with classes beginning in 2007.

“We have the scaffolding to createanother program. The dilemma ismoney, I have to go to the board ofregents with my tin cup and ask formoney for the programs. I personally

believe we ought to do more for con-struction. We’ve got synergy with thefield or the office—construction man-agement or engineering.”

Lang sees sharing faculty and class-es more likely than housing the pro-gram. He is not alone in that vision.

“I think the ConstructionManagement Bachelor of Scienceshould reside in the Community andTechnical College — right where it’s at,”Gunderson said. “I have a ton of

“How it all comes together.Coming from a constructionbackground, I’ve gotten to seeeverything you did at the bottomof the totem pole, working indrafting.“ Mia Chancellor

“Learning what authority I dohave to represent the propertyowner and guide tenants tofulfill the contracts.“

Julie Levitt

“I’ve been a mechanicaldesigner. What I’ve enjoyedmost is learning about electrical power and lighting.“

David Reaves



respect for the engineering side of ourhouse in the construction industry, butI would prefer to see the constructionmanagement program reside outsidethe School of Engineering, because thatprovides autonomy for the program.”

Gunderson says Lang brings somereal strength to the engineering pro-grams and hopes the two programs canwork together at UAA. “When theengineers and construction managersgraduate they are going to be working

together.”The construction industry is so hun-

gry for construction managers thatthose with four-year degrees experi-ence a 95-100 percent placement rate,according to Gunderson.

Employment assured“People with the two-year degree

will get jobs in Alaska,” Northey said.“The construction industry needs peo-ple and they’ll get jobs before peoplewith no experience or education. Work

might be in supply houses, with sub-contractors, cost engineering as entry-level project engineers, doing take-offsbefore the bid goes out. I can see themgetting involved in estimating and pro-ject scheduling, as helpers.”

Statewide growthAnother aspect of the program is

sharing it with other segments of theUniversity of Alaska system, by offeringcourses at other campuses and onlinefor rural students.

“I’m an intern for generalcontractor Unit Company. It’sinteresting how it ties in withwhat we’re doing in thefield.“

Ryan Bancroft

“All the AutoCAD classes andnew paperwork from the man-agement end. I was a journey-man carpenter, I’m attendingon an AGC scholarship. “

Stan Kluth

“I’m learning a lot of computerskills, coming out of the fieldwhere I was a heavy equip-ment operator for 20 years.”

Dorothy Underwood



Northey says they need to tap intothe rural workforce, and this is a greatopportunity for rural students to get afirst-rate education. Schneibel said itwill be nice to offer graduates of thenew career academy, and will enablestudents to get a couple of summers ofinternships under their belts beforejoining the workforce.

Resources will be leveraged acrossthe University of Alaska system so oth-ers can benefit, similar to the Allied

Health Alliance, which has branchedout system-wide with cohorts at UAA,UAF and UAS campuses, according toGehler. She sees the construction man-agement program growing statewidealso, and wants to offer AET classes atthe Mat-Su and Tanana Valley cam-puses next.

Construction management educa-tion is a much needed addition toAlaska’s educational offerings. Theinterdisciplinary program is designed to

provide the construction industry withworkers who have a higher level ofeducation with which to build Alaska.Gehler credits the AGC of Alaska formaking it happen.

“One of the things that reallyhelped make the construction manage-ment degree a reality was the supportof AGC, Dick Cattanach and others—no one can ask for better support or abetter industry partner.”

“I am a journeyman carpenterfrom Voc Rehab. I’m getting theother view.”

Lynnette Warren

“The most significant thingI’m learning is there is a lotof paperwork.”

Mike Bacon

“I’m a transfer student, stilltrying to see what classestransfer.”

Anthony Podolinsky



AGC 2005 CONFERENCE SCHEDULEWEDNESDAY, NOVEMBER 9

7:30 a.m.9:00 – 11:00 a.m.9:00 – 10:00 a.m.10:00 – 11:00 a.m. 11:15 a.m. – 12:45 p.m. 1:00 – 2:00 p.m. 1:00 – 3:15 p.m. 3:30 – 5:00 p.m.

5:30 – 8:00 p.m.

THURSDAY, NOVEMBER 10

6:30 a.m.

7:00 – 8:00 a.m. 8:15 – 9:15 a.m. 9:30 – 10:30 a.m. 10:45 – 11:45 a.m.

12:00 – 1:30 p.m. 1:45 – 4:45 p.m. 3:15 – 4:45 p.m.

FRIDAY, NOVEMBER 11

6:30 a.m.

7:00 – 8:00 a.m.

8:30 – 11:30 a.m. 12:00 – 1:30 p.m.1:45 – 3:00 p.m.

1:45 – 4:00 p.m.1:45 – 5:00 p.m. 6:00 – 8:30 p.m.

SATURDAY, NOVEMBER 12

8:00 – 9:00 a.m.9:10 – 11:30 a.m. 12:00 – 1:30 p.m. 12:00 – 3:00 p.m.

6:30 p.m. – Midnight

ACTIVITY

RegistrationMel Bannon on Estate Planning and Preservation of the Family BusinessSafety SeminarCOE Workshop“All About AGC” FREE Lunch, RSVP Required (Sponsored by Spenard Builders Supply)DOT WorkshopLegal AffairsAKCISAPWells Fargo Bank Alaska, NA President’s Welcome Reception

ACTIVITY

RegistrationSubcontractors Breakfast with Speakers: Mayor of Anchorage, Mark Begich, and National AGCPresident, Sam HunterJoint DOD PresentationJoint DOD Q & AEducation/Career Academy with Speaker Vicki SchneibelAlaska USA Insurance Brokers “Excellence in Construction” Awards Luncheon withSpeaker James MalinchakDOT & PF (Q & A)School District / Alaska Railroad Corporation

ACTIVITY

RegistrationBreakfast with Speakers: Vicki Schneibel, National Association of Women in Construction(NAWIC) & Click Bishop – EducationManagement Symposium – Success Starts with Attitude with James Malinchak (Sponsored by Parker, Smith & Feek, Inc.)Marsh USA “Excellence in Safety” Awards Luncheon with Speaker Senator Lisa MurkowskiThe Plans Room Training Session with Speaker Mary DitzAmerican Arbitration AssociationRisk Management: How to Reduce the High Cost of Your Construction Disputes with Speakers:Traeger Machetanz, William Bankston, Mark O'Brien, Ira Rosen, Frank Pfiffner & Susan Slagle.General Membership/Board of Directors MeetingFamily Night’s Construction Fun Fair at the American Fast Freight Warehouse

ACTIVITY

Breakfast with Speaker: Mike Smith, Facilities and Construction Department, University of Alaska AnchorageGeneral Membership/Board of Directors MeetingLadies Luncheon with Speaker Carol Comeau, Superintendent of Anchorage School District PAC Ticket DrawingDinner/DancePresentation of the: HARD HAT, VOLUNTEER OF THE YEAR, ASSOCIATE OF THE YEAR and SUPPLIER OF THE YEAR AWARDS

Hotel Captain CookAnchorage, AlaskaNovember 9-12, 2005

Vendor Room available. Limited Space. For more information contact Kimberley Gray at [email protected].



Please one form per person. Make copies of this form as necessary for additional registrations.

ConventionRegistration

AGC 2005 ANNUAL CONFERENCE–THE FOUNDATION OF ALASKAHotel Captain Cook Anchorage, Alaska November 9-12, 2005

Total: _____________________________________

Registrant’s Full Name:________________________

Company:__________________________________

Mailing Address: ____________________________

E-Mail:__________________Phone # : __________

Invoice (Members Only): ______________________

Visa _______ M/C ________ Exp: __________

Card number: ______________________________

Card Holders Name: __________________________

Card Holders Signature: ______________________

Please one form per person. Make copies of this form as necessary for additional registrations.

WEDNESDAY EVENTS – NOVEMBER 9

Daily Registration:Member–$45.00 Non-Member–$65.00 Student–$35.00

Lunch–FREE. Will you be joining us for lunch? [ ] yes [ ] noRSVP Required for Lunch. Limited Seating.Total:____________________________

ATTENTION: The President’s Reception is in the Quarter Deck from 5:30 – 8:00 p.m.

THURSDAY EVENTS – NOVEMBER 10

Daily Registration: (includes Breakfast and Lunch)

Member–$85.00 Non-Member–$110.00 Student–$65.00

Total:____________________________

FRIDAY EVENTS – NOVEMBER 11

Daily Registration: Which includes Breakfast, Lunch and theManagement Symposium with speaker James Malinchak.(Sponsored by Parker, Smith & Feek, Inc.)

Member–$125.00 Non-Member–$150.00 Student–$85.00

Management Symposium Only – James Malinchak Member–$75.00 Non-Member–$100.00Total: ____________________________

SPECIAL EVENT – Friday, NOVEMBER 11

Family Night’s Construction Fun Fair# Of Adults:__________ @ $5.00 per adultChildren Under 12 (FREE)Total:____________________________

SATURDAY EVENTS – NOVEMBER 12

Breakfast:Member–$35.00 Non-Member–$40.00 Student–$25.00

Total:____________________________

SPECIAL EVENTS – Saturday, NOVEMBER 12Ladies Lunch:Number Attending ______________$40.00 per personTotal: ____________________________

PAC Drawing: Whale’s Tail:Total for Limited Host Bar RSVP ___________________

Annual Dinner/Dance:6:30 p.m. - Midnight $125.00 per personReservations accepted after October 12, 2005.The highlights of the evening are the AGC of Alaska’s prestigious“HARD HAT AWARD”“ASSOCIATE OF THE YEAR AWARD”“VOLUNTEER OF THE YEAR AWARD”“SUPPLIER OF THE YEAR AWARD”

FULL CONFERENCE RATEIncludes most meals & seminars. (Does not include FamilyNight, Ladies Luncheon, or the Dinner Dance.)

Full Conference FeesMember–$200.00 Non-Member–$250.00 Student–$75.00

Will you be joining us for the Management Symposium withJames Malinchak? (Sponsored by Parker, Smith & Feek, Inc.)[ ] yes [ ] no (Included in Full Conference, or see Friday events.)

The first 100 people to sign up for the ManagementSymposium will receive a free copy of Malinchak’s book,How to be a Super Achiever.


ConstructionMachinery

26955
