august 2014 cam magazine

AUGUST 2014 Vol. 35 No. 8 $4.00 INTERIORS

AND FINISHES15 New Products

for Interior Designand Construction

CAM LaunchesConstruction

IndustryRoundtable

Series

CAM GovernmentAffairs Committee

Update

Lien, Bond andTrust Fund Statutes

CONSTRUCTION LAW

ALSO IN THIS ISSUE: A CONTEMPORARY BARN RAISING IN BROWNSTOWN TWP.

THE VOICE OF THE CONSTRUCTION INDUSTRY

Indemnity Rightsand Obligations

Interview withMichigan Senator

Mike Kowall

SMART WINDOWS

for Intelligent Buildings

The dierence is as clear as day.Insulated Glass Units incorporating Suntuitive Technology use the heat from direct sunlight to tint down and balance the intensity of light and heat coming through your windows, all while preserving your view, and reducing energy costs.

Call us at 800.650.9001 or visit us at www.thompsonig.com

Find us on these social networks:

Perfect for residential & commercial window applications.

Thompson IG, LLC | 3196 W. Thompson Rd., Fenton, MI 48430p. 810.629.9558 | f. 810.629.8342 | e. [email protected]

SMART SMARRT WINDOWST WINDOWST WINDOWST WINDOWSSMART SMARRT WINDOWST WINDOWST WINDOWST WINDOWS

800.650.9001all us at C

ving yeserall while pry of light and heat coming thrensitthe int

om diruse the heat fred Glass Units incornsulatI

encerhe di erT

w or visit us at 800.650.9001

educing ener, and rwour vieving yy of light and heat coming thr

o tint dot sunlight tecom dirporating Suntuitived Glass Units incor

e is as clear as daenc

.com.thompsonigwww

.gy costseducing ener, wsour windoough yy of light and heat coming thr

wn and balance o tint doechnology TTechnology e porating Suntuitiv

.ye is as clear as da

esidential & commeror rt f o ecffecerP .w applicationscial windoesidential & commer

800.650.9001all us at C

ks:orwind us on these social netF

. 81 . 810.629.9558 | f f. 810.629.8342 | epC | 3196 hompson IG, LLT

w or visit us at 800.650.9001

o@thompsonig. inf fo@thompsonig. 810.629.8342 | eon, MI 48430ent., Fdhompson RT. WC | 3196

.com.thompsonigwww

.comon, MI 48430

^^^][JPUZJVT

GRIFFIN, SMALLEY & WILKERSON, INC.

^^^NZ^PUZJVT

=;*05:

4 CAM MAGAZINE AUGUST 2014 Voice Of The Construction Industry

FEATURES

12 SUSTAIN|ABILITY Thermal Imaging for

Energy Loss Detection

14 CAM Successfully LaunchesConstruction Industry Roundtable Series

18 Government Affairs Committee Legislative Update

20 Senator Mike Kowall:Making Business Happen

CONSTRUCTION LAW

22 Managing Your Companys IndemnityRights and Obligations

26 Time to Update and ConformConstruction Lien, Bond and Trust Fund Statutes

VO ICE OF THE CONSTRUCT ION INDUSTRY

INTERIOR AND FINISHES

30 15 New Products for Interior Design and Construction

CONSTRUCTION HIGHLIGHT

38 A Contemporary Barn Raising inBrownstown Township

Re-inventing the Recreational Campus

DEPARTMENTS 8 Industry News 9 Safety Tool Kit11 Marketing on the Level43 People in Construction/Corporate News46 Construction Calendar46 Welcome New Members46 Advertisers Index

MANUFACTURERS OF LIGHT GAUGE STEEL STUDS

35305 Glendale St. Livonia, MI 48150 | PH: 734.793.9000 | FAX: 734.793.9007

WWW.JAIMESIND.COM

AX: 734.462.6140

WWW.JAIMESIND.COM

MANUFACTURERS OF ENGINEERED LIGHT GAUGE METAL TRUSSES & WALL PANELS

522)75866(6)/22575866(6*,5'(575866(60$16$5'75866(6P$5$3(775866(6W$//P$1(/6&8672072:(56)8//Y$87OMA7('6758&785$/(1*,1((5,1*

A

35305 Glendale St. Livonia, MI 48150 | PH: 734.793.9000 | FAX: 734.793.9007AX: 734.793.9007

WWW.JAIMESIND.COM

AX: 734.462.6140A

WWW.JAIMESIND.COM

A

AL TRUSSES & WALLWALLW PAPAP NELS

522)75866(6)/22575866(6*,5'(575866(60$16$5'75866(6P$5$3(775866(6P$5$3(775866(6PW$/W$/W / P$1(/6P$1(/6P&8672072:(56)8//Y/Y/ $87OMA7('A7('A6758&785$/(1*,1((5,1*

WE ARE PROUD TO BE A M

ADE IN MICHIGAN M

ANUFACTURER!

SD87S//AWY5D6758&785$/678'6

75$&.HA7&+$11(/

%/$&.,521&5&$1*/(&/,36

)/A7672&.&867OM


PUBLISHER Kevin N. Koehler EDITOR Amanda M. Tackett

ASSOCIATE EDITOR Mary E. Kremposky

PRODUCTION DIRECTOR Matthew J. Austermann GRAPHIC DESIGN Marci L. Christian DIRECTOR OF MARKETING Gregg A. Montowski ACCOUNT EXECUTIVE Cathy A. Jones

DIRECTORS OFFICERS Chairman Eric C. Steck Amalio Corporation Vice Chairman Todd W. Hill Ventcon, Inc. Vice Chairman Mary K. Marble Marble Mechanical, LLC Treasurer Larry S. Brinker, Jr. The Brinker Group President Kevin N. Koehler DIRECTORS Stephen J. Hohenshil Glasco Corporation

Brad Leidal Leidal & Hart Mason Contractors, Inc.

Giuseppe (Joe) S. Palazzolo Detroit Spectrum Painters, Inc.

John Raimondo Roncelli, Inc.

John W. Rieckhoff C.L. Rieckhoff Company, Inc.

Kevin F. Ryan Powerlink Facility Management Services

Preston Wallace Limbach Company, LLC

Donielle Wunderlich George W. Auch Company

CAM MAGAZINE EDITORIAL ADVISORY COMMITTEE William L. Borch, Jr. Ironworkers Local Union 25 Gary Boyajian Division 8 Solutions, Inc. Stevan Bratic Bratic Enterprises, LLC Marty Burnstein Law Office of Marty Burnstein George Dobrowitsky Walbridge Daniel Englehart Peter Basso and Associates, Inc. Chris Hippler Capital Letters Dennis King DMKING Consulting, LLC Nancy Marshall Aluminum Supply Company Rick Rys Hi Def Color Sanford (Sandy) Sulkes International Building Products, Inc. James Vargo Capac Construction Company, Inc.

CAM Magazine (ISSN08837880) is published monthly by the Construction Association of Michigan, 43636 Woodward Ave., P.O. Box 3204, Bloomfield Hills, MI 48302-3204 (248) 972-1000. $24.00 of annual membership dues is allocated to a subscription to CAM Magazine. Additional subscriptions $40.00 annually. Periodical postage paid at Bloomfield Hills, MI and additional mailing offices. POSTMASTER, SEND ADDRESS CHANGES TO: CAM MAGAZINE, 43636 WOODWARD AVE., BLOOMFIELD HILLS, MI 48302-3204.

For editorial comment or more information: [email protected] reprints or to sell CAM Magazine: 248-972-1000

Copyright 2013 Construction Association of Michigan. All rights reserved. Reproduction in whole or part without permission is prohibited. CAM Magazine is a registered trademark of the Construction Association of Michigan.

Michigan Regional Councilof

Carpenters and Millwrights

Serving the CommunityBuilding a Stronger Michigan

Michael JacksonExecutive Secretary/Treasurer

Bart NickersonPresident

hammer9.com

M

C

Michigan Reg

Carpente

gan Regional Coof

ers and Mils and Mr

nal Coun

s and Millwrwrl ights

ncil

ghts

BeS rvivir n

Building a Stng the Co

g a Stroor ngtyommuni yt

ger Michiganygan

ME

Bart NickersonPre

h

Michael Jacksoxecutive Secretaat ry/yr

Bart NickersonPresident

ha mm er

ony/Treasurer

Bart Nickerson

9r .comhha mm er9r .com


INDUSTRY NEWS

Fourth Generation FamilyBusiness Celebrates 100thAnniversary Madison Electric Company, one of Michiganslargest wholesale distributors of electrical,automation, HVAC, PVF, plumbing, watermanagement and network communicationsystems and components, is celebrating 100years as a Michigan family-owned business. In celebration of its centennial, MadisonElectric Company is committed to raising$100,000 for local charities to show itsappreciation for the community that hassupported them in a century of success. Thecharitable organizations include: KarmanosCancer Institute, Gleaners Food Bank, DetroitInstitute for Children, and Michigan FreedomCenter. In addition to the fundraising effortsspearheaded by family executive leadership,Madison associates will also participate inplanned fundraising events and volunteeractivities at the four selected charities throughoutthe year. Over the past century, Madison ElectricCompany has grown from two men, operatingtheir business out of a small industrial building inDetroit, to a multi-faceted corporation comprisedof eight locations, 150 employees and $80 millionin annual sales. The company was founded in 1914 bybrothers Morris and Max Blumberg and hasremained under the leadership of their decedentsever since. It enters its second century presidedover by Brett Schneider, great grandson of MorrisBlumberg, marking the fourth generation ofleadership. As we celebrate the 100th anniversary ofMadison Electric Company, wed like to thankthose who came before us and laid the strongfoundation where we stand today, said

Schneider, president of Madison ElectricCompany. It remains our duty to fix our eyes tothe future to ensure just as strong a foundationfor the next generation. Madison Electric Companys greatestmilestones have been marked by the leadershipsfuture-focused approach to business. Examples ofthis include opening branch locations to bringproducts closer to contractors during the post-World War II urban sprawl; forming the industrialelectronics division to provide interconnectedproducts, cable assemblies and productioncomputers during the turn of the century; andinvesting early into automation, twenty yearsbefore it reached the popularity it has gained today. Every generation of leadership has made it

their goal to leave the company even better thanthey found it, said Benjamin Rosenthal, chieffinancial officer of Madison Electric Company. Itsthis mentality that drives us to try new things,invest in new technology and expand ourofferings. Representing the fourth generation ofleadership of Madison Electric Company are:Brett Schneider, president; Brad Schneider, vicepresident of operations; and Jordan Glass,secretary/treasurer. The companys thirdgeneration of family leaders include: BenjaminRosenthal, chief financial officer; RichardSonenklar, vice president and chief informationofficer; Scott Leemaster, vice president andgeneral manager; and Jon Waitz, vice president.

Katherine Banicki Honoredwith ESDs 2014 LifetimeAchievement Award Katherine Banicki, FESD, president ofTesting Engineers & Consultants, Inc., hasbeen awarded the 2014 Engineering Societyof Detroit (ESD) Lifetime Achievement Award.Banicki was nominated in recognition of herexemplary service and contributions to theESD and to the field of engineering. Her awardwas presented at ESDs Annual AwardsProgram held on Wednesday, June 18, 2014, at the Cobo Center in Detroit. The Engineering Society of Detroit, founded in 1895, has been a leaderin promoting professions in both engineering and science and continues toprovide invaluable technical assistance to the greater Detroit area. Banicki, alongside her husband, John Banicki, PE, FESD, foundedTesting Engineers & Consultants, Inc. in 1966. As a firm believer in

community service, she is involved in numerous youth, civic, religious andprofessional organizations along with her widespread philanthropicendeavors. Throughout her tenure as TECs president, she has receivedmany awards and honors for her role as a community and industry leader.She was most recently honored with ESDs Distinguished Service Awardand is a past recipient of ESDs Outstanding Leadership Award. Banickiwas honored by AIA Michigan as an Affiliate Member, accepted theMichigan Society of Professional Engineers (MSPE) Presidents Citation,and was honored by the Wayne State University College of Engineering withthe esteemed Socius Collegii Award. Banicki has remained a member ofESD for more than a decade and can now add ESDs Lifetime AchievementAward to her growing list of career accomplishments. TEC, a small and woman-owned business, provides client support fromproperty acquisition through construction, renovation and restoration.Expertise includes environmental assessment, consulting and training;geotechnical and facilities engineering and consulting; construction materialstesting; and indoor air quality, asbestos, lead and mold managementservices. Founded in 1966, TEC has offices in Troy, Ann Arbor and Detroit.

Visit us online at www.cammagazineonline.com CAM MAGAZINE AUGUST 2014 9

Todd Sachse NamedEntrepreneur of the Year by Ernst Young Ernst Young (EY) recently announced thatTodd Sachse, of Sachse Construction,Detroit, has received the EY Entrepreneur ofthe Year 2014 Award in the diversifiedcategory in the Michigan and Northwest Ohioregion. The award recognizes outstandingentrepreneurs who demonstrate excellenceand extraordinary success in such areas as innovation, financialperformance, and personal commitment to their businesses andcommunities. For more information on Sachse Construction, please visitwww.sachseconstruction.com.

Eatons Cooper Lighting Business AnnouncesSOURCE Awards Call for Entries Power management company Eaton has announced that its CooperLighting Division is now accepting entries for the 38th Annual SOURCEAwards national lighting design competition. The competition,which focuses onfurthering theunderstanding,knowledge and functionof lighting as a primaryelement in design, isopen to all lightingdesigners, architects, engineers, professional designers and consultantswho use lighting and controls products from Eatons Cooper Lightingbusiness in interior or exterior design projects. Students currently enrolledin any of these disciplines are also eligible to enter projects based onconceptual lighting designs and will be judged in a separate studentcategory. Were always looking for the most creative and innovative use of state-of-the-art lighting products and techniques, said Mark Eubanks, president,Eatons Cooper Lighting Division. This competition is a reflection of thatoutlook with the call for entries going out to designers and students alike.The awards ask participants to combine aesthetics, creativity and technicalperformance to address specific lighting needs while meeting projectconstraints and design concept goals. Entries must be postmarked on or before January 30, 2015, and winnerswill be announced in May 2015 at LIGHTFAIR International in New York City.There will be no minimum or maximum number of awards given, as eachproject will be judged on its own merit. Selected entries will earn thedistinction of Winner, Honorable Mention or Award of Recognition. Judging for the 38th Annual SOURCE Awards competition will take placein February 2015 by a professional, independent panel of lighting anddesign professionals, as well as a representative from the SOURCE, Eatonspremier lighting education center. The student winner(s) will receive a$1,500 award and professional winner(s) will receive $2,000. All winnerswill receive a crystal trophy, local and national recognition, and an invitationto attend a lighting seminar at the SOURCE, located in Peachtree City, GA.The faculty adviser of the winning student(s) will also be invited to attendthe seminar. To learn more about the competition, download a complete list of rulesor view past winners, visit www.cooperlighting.com/sourceawards.

By Tracey alfonsi, DirecTor of eDucaTion & safeTy services

Heat illness can be deadly. Every year, thousands of workers becomesick from exposure to heat, and some even die. These illnesses anddeaths are preventable.

Who is affected? Workers exposed to hot and humid conditions are atrisk of heat illness, especially those doing heavy work tasks or using bulkyprotective clothing and equipment. Some workers might be at greater riskthan others if they have not built up a tolerance to hot conditions. Youngchildren, older adults, people who are obese and people born with animpaired ability to sweat are at high risk of heatstroke. Other risk factorsinclude dehydration, alcohol use, cardiovascular disease and certainmedications.

What is heat illness? The body normally cools itself by sweating. Duringhot weather, especially with high humidity, sweating isnt enough. Bodytemperature can rise to dangerous levels if precautions are not taken. Heatillnesses range from heat rash and heat cramps to heat exhaustion andheat stroke. Heat stroke can result in death and requires immediatemedical attention.

How can heat illness be prevented? Remember three simple words:water, rest, shade. Drinking water often, taking breaks, and limiting time inthe heat can help prevent heat illness. Gradually build up to heavy work inhot conditions. This helps you build tolerance to the heat or becomeacclimated. Gradually increase workloads and allow more frequent breaksduring the first week of work. Also, its important to know and look out forthe symptoms of heat illness in yourself and others during hot weather. Planfor an emergency and know what to do - acting quickly can save lives!

When do I call 911? If you observe the following signs of heat stroke,consider it to be a life threatening emergency: Rapid heartbeat Rapid and shallow breathing Cessation of sweating Irritability, confusion or unconsciousness Feeling dizzy or lightheaded Headache Nausea Fainting, which may be the first sign in older adults


INDUSTRY NEWS

recogniTion awarDsGold Medal AwardGlen LeRoy, FAIA

Robert F. Hastings Award Kirk Delzer, AIA

President's AwardDan Pitera, FAIA

Balthazar Korab AwardTyree Guyton, Heidelberg Project

Honorary Affiliate AwardKent Anderson, PLALou Anna K. Simon, President, Michigan State University

Young Architect AwardAndrew Dunlap, AIA

Associate Member AwardMatthew Guinta, Associate AIA

AIA Fellow Celeste Allen Novak, FAIA

Firm of the YearGhafari Associates

For more information about the AIA MichiganDesign Awards and the celebration held on June7th, please visit www.aiami.com.

BuilDing awarDsWayne County Community College District NW

CampusHamilton Anderson Associates

Rockford Construction Office ComplexIntegrated Architecture

Cranbrook Art Museum Collections BuildingSmithGroupJJR

Michigan State University Molecular PlantSciences Building

SmithGroupJJR

low BuDgeT / small ProjecTawarDHistoric Wing Lake Stone SchoolhouseHopkinsBurns Design Studio

inTerior awarDsZola BistroPLY Architecture

M@dison BuildingNeumann/Smith Architecture

unBuilT ProjecT awarDLiquid Planning DetroitMAde Studio

sTeel ProjecT awarDHighland Community HospitalSmithGroupJJR

sTuDenT awarDAdam Cook University of Detroit Mercy

25 year awarDsBirmingham ResidenceLuckenbach/Ziegelman, PLLC

Palace of Auburn HillsROSSETTI

Fire ProtectionSpecialists

Jackson Associates, Inc.

www.JacksonAssociatesInc.com

DESIGNINSTALLINSPECTMAINTAIN

1111 W. Oakley Park Rd.Walled Lake, MI 48390

248-669-5155

SINCE 19791979INCE SSINCE

1979

AINMAINTMAINTAININSPECT

ALLINSTINSTALLDESIGN

Specialists

AININSPECT

Specialists

248-669-5155 MI 48390,, MI 48390alled LakeW

. Oakley Park Rd.WW. Oakley Park Rd.1111

.JacksonAssociatesIncwwwwww.JacksonAssociatesInc

248-669-5155 MI 48390

. Oakley Park Rd.

.com.JacksonAssociatesInc.JacksonAssociatesInc.com

AIA Michigan Design Awards Announced The American Institute of Architects Michigan announced that nine buildings havebeen singled out for design excellence and will receive their awards at its annual DesignAwards celebration on June 7, 2014 at the Eli and Edythe Broad Art Museum in EastLansing. Dozens of projects were entered in the competition and they were judged byan esteemed jury from San Antonio, TX, chaired by Jim Poteet, FAIA.

Guideline for ConditionAssessment of the BuildingEnvelope Published The updated Guideline for ConditionAssessment of the Building Envelope ASCE/SEIStandard 30-14 has been published. The intentof this Standard is to provide a guideline andmethodology for assessing the condition andperformance of existing building envelopesystems and components and identifyingproblematic and dysfunctional elements. Itapplies equally to a buildings envelope or portionwhose primary purpose may be to serve as thesupporting structural system of the building. Condition assessment of an existing buildingenvelope may be undertaken for a number ofpurposes, including a performance report,establishing building serviceability, planning formaintenance or repair, code compliance, lifesafety, durability and historic preservation. The American Society of Civil Engineers(ASCE) in publishing the Standard,acknowledged the work of the Condition

Assessment of the Building Envelope Committeeof the Codes and Standards Activities Division ofthe Structural Engineering Institute (SEI). Thisgroup comprises individuals from manybackgrounds including consulting engineering,research, construction industry, education,government, design and private practice. Serving on this Committee is Joseph F.Neussendorfer, Aff.M.ASCE, ESD, president &CEO of U.S. Construction Research in Livonia.Neussendorfer is also a member of ASCEsConstruction Institute. He is a Licensed Builderin Michigan, and, has served on several MichiganOccupational Safety and Health Advisory(MIOSHA) Committees, including Fire Safety andMasonry Wall Bracing regulations. Copies of the new ASCE-SEI Standard 30-14may be ordered at: www.asce.org.

The following is a list of the winning projects by category:

DecorativeConcreteAwards Call for EntriesThe Decorative Concrete Council (DCC), a specialty council ofthe American Society of Concrete Contractors (ASCC), St.Louis, in partnership with Concrete Construction and Architectmagazines, announces its seventh annual Decorative ConcreteAwards. The competition is open to DCC members and non-members. Entries are invited in the following categories: overlays, cast-in-place stamped and special finishes, stained, polished,countertops, vertical application, concrete artistry, multipleapplications, and architectural concrete. With the exception ofcountertops, two awards may be given in each category, forprojects 5,000 SF and less, and projects over 5,000 SF. Submittals are judged on craftsmanship, aesthetics,functionality and creativity. The deadline for submittal is September 30, 2014. Theawards will be presented at the World of Concrete 2015. Formore information, or to receive a call for entries brochure go towww.ascconline.org or call 1-866-788-2722.Visit us online at www.cammagazineonline.com CAM MAGAZINE AUGUST 2014 11

Ghafari is AIAMichigan Firm of theYear Ghafari Associates, Dearborn, is pleased to announce that ithas been named the 2014 Firm of the Year by the AmericanInstitute of Architects (AIA) Michigan. Ghafari was presented withthe recognition at the annual AIA Michigan Honor Awardscelebration on June 7, 2014. The Firm of the Year Awardrecognizes an organization of architects that has consistentlyproduced distinguished architecture for at least 10 years. The firmmust have great depth and breadth and be widely known forquality work that is the product of a collaborative environment. We are honored to be selected as Firm of the Year by AIAMichigan. This recognition honors the hard work and talents ofnot only our architects, but the firm as a whole, said Chairmanand Founder Yousif B. Ghafari. Originally founded in 1982 as a four-person CADD operationin Livonia, Ghafari Associates has developed into a full-servicearchitecture, engineering and consulting firm with nearly 400employees worldwide. Ghafari has contributed to the architecturalprofession over the past 32 years, providing programming,planning, management and design services for projects rangingfrom small renovations to new multi-facility complexes for clientsin the automotive, aviation, commercial, education, energy, food,government / institutional, healthcare and industrial /manufacturing markets. Since its founding, Ghafari has developed a reputation forinnovation in its industry, rooted in an unwavering commitmentto client service and efficiency in project delivery. Whether it isthrough the adoption of a new technology, design technique ordelivery method, the firm is guided by a drive to serve its clientsmore effectively. This focus permeates all areas of its business,incorporating its full array of facility and process designcapabilities combined with advanced technological tools,sustainable practices and lean principles.

Is Inbound Marketing Right for You?Inbound marketing has revolutionized the field of marketing. Since 2006 ithas been the most effective marketing method for doing business online.But how does inbound marketing differ from outbound marketing, and isit right for you?

ouTBounD markeTingIn outbound marketing, an audience is engaged with outbound messaging and one-sided

conversations. Television commercials, print ads, radio spots, direct mailings and billboardsare examples of outbound marketing.

The strategy behind outbound marketing is simple: Hit the targeted audience with youradvertisement with enough frequency and they will eventually take your desired action.

Technology tends to make these techniques lesseffective and more expensive. Caller ID blocks cold calls,TiVo makes TV advertising less effective, spam filtersblock mass e-mails, and tools like RSS are making printand display advertising less effective. It's still possible toget a message out via these channels, but it costs more.

Outbound marketing is an effective brand buildingtactic but were no longer in the Mad Men-esque erawhere companies could blast messages and push theirstrategies onto consumers.

inBounD markeTingInbound marketing is marketing focused on getting

found by customers. The modern marketer needs tofocus on drawing in prospects by providing real value anddeveloping relationships.

By aligning the content you publish with yourcustomers interests, you attract inbound traffic that you can then convert over time.

The most successful inbound marketing campaigns have three key components:

Content - The core of any inbound marketing campaign. It is the information or tool thatattracts potential customers to your site or your business.

Search Engine Optimization (SEO) - Makes it easier for potential customers to find yourcontent. It is the practice of building your site and having inbound links to your site to maximizeyour ranking in search engines, where most of your customers begin their buying process.

Social Media - Amplifies the impact of your content. When your content is distributed acrossand discussed on networks of personal relationships, it becomes more authentic andnuanced, and is more likely to draw qualified customers to your site.

which is righT for you?Marketing can get very complicate, so with our clients, I try to simplify it with a few fundamentalquestions. Who are your clients? How can you reach them? What are their pain points?

If clients or prospects are searching online for your services, inbound marketing should bepart of your overall marketing strategy. Many of our CAM clients, though, use their websiteto verify capabilities, or show their recent work. They are in the enviable positon of knowingwho their clients are, and for those clients, the cost and time of inbound marketing may notbe justified.

If your sales pipeline is thin or needs a boost, you might want to consider putting moreinto outbound marketing. If your pipeline is doing okay right now, then considering puttingmore towards inbound marketing.

Marketing on the Level is written specifically for CAM members and the commercial and industrial constructionindustry. We are specialists at inbound marketing, outbound marketing and developing websites. Contact Chris @ [email protected] or (734) 353-9918 or visit www.capitallettersmarketing.com.

Instead of driving a message into a crowd like asledgehammer,

inbound marketingattracts qualified

customers like a magnet.

By Chris Hippler, President, Capital Letters

SUSTAIN|ABILITY


According to insurance industry reports, electrical fires represent 40percent of fire loss and 20 percent of large-scale fire incidents. Thesetypes of accidents are commonly caused by loose connections,weakening of isolations, obstructed cooling and mechanical damage. Athermographic survey is a fast, cost-efficient way to perform preventivemaintenance on electrical systems that will prevent fires, downtime and wasteenergy. If your building electrical equipment is old, you suspect it is runninghot, hasnt been properly maintained, or your electric bills seem unusuallyhigh, consider a thermographic inspection to isolate potential problems. Thermal Imaging - or Thermography - uses a specialized imaging system,which detects surface radiated thermal energy (heat) and converts that energyto a visible digital image for later viewing. A Thermal Imager or ThermalCamera has many diagnostic applications in commercial and residentialelectrical systems diagnostics, building envelope condition monitoring, low

slope roof leak moisture detection, HVACR condition monitoring anddiagnostics. This article focuses on commercial electrical system diagnosticsfrom both a safety and energy loss perspective. Electrical distribution systems route the incoming grid power to the enduse point in commercial buildings using transformers, bus ducts, conduit andhard-wired or outlet connections. Efficient usage of electrical energy by acommercial facility requires high electrical connection integrity and propersizing of conductors, according to the National Electrical Code, to minimizeenergy loss and subsequent heat generation.

Potential problems and failures of electrical devices such as electricalcenters, fuse boards, terminals, joints, electric motors, transformers andelectronic devices can be identified using a Thermal Imaging Camera. Thepart or structural part of the electrical appliance with potential problems

Thermographic image (left) and corresponding visual image (right) of multiple potential electrical incidents in electrical control panel. Thermalimage identified areas of concern: Red arrow shows fuse clip heating from either loose connection or corrosion of Phase A (check soon); Green arrowshows serious fuse clip heating from either loose connection or corrosion of Phase C (immediately service); Blue arrow shows wire/connector screwclamp force low or corrosion, heat conducting up wire slightly (immediately service).

Thermal Imagingfor Energy Loss DetectionA Thermographic Survey Prevents Energy Loss and Costly DowntimeBy Keith Vosburgh, President, Total Energy Solutions


radiates heat that can be identified easily. Basedon this information, the overheating and potentialcause of problems, interruptions or fire can bedetected. By performing regular imaginginspections of electrical devices, electrical failurescan be identified before use is interrupted or a fireis started. The electrical system temperatures, related tothe applicable safety standards and ratings for thecomponents, must be checked on a regular basisas connection integrity can degrade over time.Commercial Electrical Systems should thus have

at least annual electrical diagnostic inspectionsaccording to the National Fire ProtectionAssociation. Inspection protects the buildingowners and occupants from risk of fire damageand catastrophic losses related to explosions fromElectrical Arc Flash incidents.

Insurance statistics show that Thermal Imaginginspection survey costs are a fraction of avoidedincident costs when performed proactively. Whensecond order incident effects and costs foremergency shutdowns and business loss, andexpedited repair services and expedited repair partdeliveries are included, the cost ratio can be manytimes higher than Thermal Imaging costs. Most important is correct application of ThermalImaging and interpretation of results according todefined industry standards and practices. Themost important thermographic imagingqualification is training. Infraspection Institute LevelIII, highest level, conforms to the level requirementsdefined by the ASNT (ASNT = American Societyfor Non-destructive Testing), the qualificationsystem of thermographic imaging personnel inclasses I, II, and III following similar principals tothose for X-ray and ultrasonic inspectors and otherNDT inspectors. Using thermograpic imaging is one more, fastand cost effective tool in your check list forpreventive maintenance.

About the author: Keith Vosburgh, president, TotalEnergy Solutions, is an Infraspection Institute LevelIII Certified Infrared Thermographer with sevenyears experience in multiple applications ofThermography. He has presented on ThermalImaging in commercial refrigeration systems, atmultiple Thermal Imaging conferences. He can bereached at: [email protected].

MICHIGANS MOST TRUSTED LABORATORY CASEWORK & EQUIPMENT PROVIDER SINCE 1937, DELIVERING THE HIGHEST QUALITY PRODUCTS WITH PROFESSIONAL RESULTS.

2950 Todd Rd, Troy MI 48084 +1 248 643 8890 www.farnell-equipment.com MICHIGANS MOST TRUSTED LABORATORY CASEWORK & EQUIPMENT PROVIDER SINCE

1937, DELIVERING THE HIGHEST QUALITY PRODUCTS WITH PROFESSIONAL RESULTS.

48084 MI y roTRd, odd TTodd 2950 MICHIGANS MOST TRUSTED LABORATORY CASEWORK & EQUIPMENT PROVIDER SINCE


8890643 248 +1 48084 www.farnell-equipment.com MICHIGANS MOST TRUSTED LABORATORY CASEWORK & EQUIPMENT PROVIDER SINCE


www.farnell-equipment.com

248.244.3000 | doeren.com Insight. Oversight. Foresight.SM

Insight, Oversight and Foresight to Build on Your Success

Insight, Oversight and Foresight to Build on Your Success

An internationally recognized, top 100 U.S. firm, Doeren Mayhew provides construction companies with insight into their businesses, oversight to ensure best practices and foresight for whats ahead. We invite you to see how we can help you capitalize on the opportunities and navigate the challenges specific to the construction industry. Visit doerenmayhewconstruction.com today.

Using thermograpicimaging is one more,

fast and cost effectivetool in your check list forpreventive maintenance.


The jobsite is the Townsend Hotel in Birmingham. The projectis rebuilding the entire design and construction industry inMichigan. This is no small task, but as famed 19th Centuryarchitect Daniel Burnham once said, Make no little plans, for theyhave no magic to stir peoples blood. Over 40 thought-leaders from everysector of the industry embraced the challenge, convening at this elegantboutique hotel for a series of historic roundtables conducted by theConstruction Association of Michigan (CAM). The goal: Change businessas usual and restore the vitality of one of Michigans major industries. The roundtables are the brainchild of Amalio Corporation Vice Presidentand CAM Chairman Eric C. Steck. Inspired by Gov. Rick Snydersturnaround of Michigan and Detroit Mayor Michael Duggans efforts torevitalize the Motor City, Steck wants to bring the same transformativeenergy to the construction industry. These leaders changed the status quoand that is exactly what Steck believes needs to happen to create a healthyconstruction industry. Whether you are a republican or democrat, I believe both Snyder andDuggan are trying to do what is right. I think we need to do what is right inour industry, said Steck. The goal of the roundtables is to create anindustry beneficial to all disciplines, including owners, designers,contractors, subcontractors and suppliers. We truly want to provide a win-win for everybody. The ripple effect of this industry-wide regeneration will be a healthier stateeconomy. Owners will say, Michigan is where I want to build mybuildings, said Steck. Steck provided the roundtable vision, and CAM, along with itsGovernment Affairs Committee and Steck himself as CAM chairman, madeit all happen. The three roundtables are being conducted over the courseof six months in 2014. The three different sessions are: Issue Identification,Finding Common Ground and Developing Courses of Action and PositiveSolutions.

Roncelli, Inc. Director, CAM Director and Chairman of CAMs GovernmentAffairs Committee John A. Raimondo, PE, sums up the roundtablespurpose: The goals of the roundtable are to identify, agree on andimplement solutions to those issues that are most important to CAMmembers, our industry and our owner-client constituents, meaning thosestakeholders or companies that support our businesses. For Raimondo,the overarching goal is to help CAM members improve the way they deliverservices to their customers. A strategy team formulated and implemented the roundtable plan. Thefive members of the strategy team are Eric Steck; John Raimondo; CAMPresident Kevin N. Koehler; Bruce M. Pregler, Facca, Richter & Pregler, PC,PAC chairman of CAMs Government Affairs Committee and CAMConstruction Federal Credit Union director; and Matthew J. Gurwin, DoerenMayhew, roundtable moderator. Round one: Issue IdentIfIcatIon Held March 27, 2014, the first session asked a series of thought-provoking questions: What are the challenges facing the industry today?What are the largest concerns that you and your business currently face?What keeps you up at night? Ask over 40 passionate, articulate anddedicated industry professionals a question and watch the ideas flow.Burdensome retainage policies for subcontractors and obstacles blockingdelivery of accurate cost estimates to owners were among the concerns ofthe assembled group of owners, architects, engineers, constructionmanagers, general contractors, subcontractors and suppliers. CAM President Kevin Koehler offers a succinct summary of aconstruction project viewed through the eyes of each stakeholder: Owners: Owners want accuracy in cost model development. Costpressures, as well as schedule and safety performance, rank as numberone concerns among owners. Other concerns include the need to manageand mitigate project and capital program risks, project funding, practices

SuccessfullyLaunchesConstructionIndustryRoundtable Series


to improve quality and savings in projectexecution and the availability of trade labor andmanagement to meet future demands. Architects/Engineers: The designcommunity is concerned with themisunderstanding of the Industry Standard ofCare, as well as errors and omissions policies.The design community is also concerned abouthaving the proper amount of time and anadequate design services fees to provide gooddocuments. Good documents will help ensure a

smooth-running project without budgetarysurprises. Lack of adequate and comprehensiveproject planning also makes the list. General Contractors/ConstructionManagers: Procurement practices are on thetop of the list for these stakeholders. Challengesin this category include the low-bid mentality,the need for qualification-based selection, tensionbetween value vs. price, cost escalation, slowpay and the change order process. Otherconcerns include workforce availability, contractlanguage, and identifying and securing profitablework in a highly competitive market with thinmargins. The performance category showsconcern with subcontractor solvency andstability, and in general doing more with less. Subcontractors: Payment and retainageissues rank as No. 1 for subcontractors. Thiscategory includes slow pay, excessively highretainage, extended retainage payment time withretainage held to the end of the project ratherthan upon the subcontractors completion ofwork, and last minute back charges at contractcloseout. Other concerns include low margins,prompt processing of change orders, unfavorablecontracts and incomplete and inaccuratedocuments. Suppliers: Sustainable margins keepsuppliers up at night, in addition to concerns withpay when paid contracts, back charges,unrealistic expectations and lead times that are

Your Legal Team in Michigan and IllinoisSullivan, Ward, Asher & Patton has stood for strength,experience, dedication and teamwork for more than six decades. We providecomprehensive construction, business, transactional, and litigation servicesto the business community. As a client of our law firm, you will work with ateam of lawyers whose experience and knowledge are especially suited to yourspecific legal and industry needs. You will be an integral part of that teambecause you know your business better than anyone else.

KEVIN J. GLEESONConstruction Law Practice Group LeaderE-mail: [email protected] www.swappc.com

SOUTHFIELDMICHIGAN

248.746.0700

GRAND RAPIDSMICHIGAN

616.459.9040

CHICAGOILLINOIS

312.214.3175

CHANGE BUSINESS AS USUAL ANDRESTORE THE

VITALITY OF ONE OF MICHIGANS

MAJOR INDUSTRIES.


too short to bid and deliver product. Suppliersalso want to be consulted in the design phase ofthe project to alleviate unrealistic expectations. Honest discussion is a step forward indeveloping an intangible sense of trust and insolving the industrys problems. The roundtableis a wonderful opportunity to learn from othersand to find out the issues of greatestimportance to them, said Raimondo.This improved understanding will help inthe development of effective solutions inour industry. The feedback from the roundtable hasbeen very positive. One personcommented, This has been a long timecoming, said Raimondo.

Round two: fIndIngcommon gRound In between the two roundtables, CAMused Survey Monkey to solicit feedbackon the top ten issues of importance toeach of the 40 participants. The issueswere grouped by stakeholder group; thetop five were selected for more intensivereview at the second roundtable. Held June 5, 2014, over 98 percent ofparticipants returned eager to roll up theircollective sleeves. A few new faces even joinedthis unprecedented industry initiative. The coffee flowed and the work continued atthis second session devoted to prioritizing acommon list of concerns from the host of issuesraised at the first session. Four issues wereidentified: forging a collaborative model foraccuracy in cost modeling and other concerns;funding, including pay when paid, sustainablegrowth, project funding and margins; contractlanguage; and workforce concerns. Safety alsois a top concern. Steck briefly discusses a few of theseconcerns. An aging workforce, lack of vocationaltraining in high schools, and a labor force leanfrom the Great Recession, coupled withcompanies still cautious about the economy andreluctant to hire, have all combined to createshortages in meeting the recent uptick in work. Steck also cites another factor. Right now,the margins are so tight that the rewards forputting in your heart, soul and sweat are not thereanymore, he commented. Some people havechosen to get out of the industry, and they alsohave decided not to encourage their familymembers and youngsters to get into thebusiness. Low margins and tight timeframes continue tosqueeze all disciplines. Profit is not a swearword, declares Steck. We need a bit of moneyto keep up with technology, the latest trends andgood equipment. The problem is not theconstruction work; its everything around it. Its

the lack of support from the banking and bondingcompanies and its the non-prompt pay. As afoundation contractor, I am among the first oneson the jobsite. There are projects on which weare not going to get our retainage until the end ofthe project two years later.

Round thRee: developIngcouRses of actIon and posItIvesolutIons CAM is now soliciting all participants forsolutions, ideas and options to bring to the lastofficial roundtable slated for October 16, 2014. Itpromises to be another exciting exchange ofideas from this dedicated group of thought-leaders. My hope for this session is that we as anindustry and as CAM members agree on anddevelop the right solutions that not onlystrengthen our industry, but also strengthen ourindividual organizations competitive advantage,said Raimondo, as well as strengthen the valuethat CAM can deliver to our organizations as partof the solution to todays construction industryconcerns. Participants will develop a course of action toresolve concerns identified in the secondroundtable. Changing the culture of the industrymay be part of the solution, said Steck. Wemay not totally change it, but we might adjust itto be a more positive and less defensive culture. Part of that is going to require good ownerswho recognize the benefits of workingcollaboratively with all project participants, saidSteck. It means taking the knowledge of allproject participants and using it to help provide agood project. As a testament to the success of thisapproach, Amalio recently provided some value-engineering ideas with an owner upfront as a

concrete contractor during the post-bid review.We provided some cost saving and scheduleimprovement suggestions, said Steck. Theowner incorporated those changes right into thedocuments. As a result, there were virtually noextras, no changes, and no increased costs.Quality work was performed and the schedule

was improved. That was for a 40,000-square-foot addition. We then negotiateda 225,000-square-foot, five-story buildingwith them in the same way. That projectshowed the cooperation between theowner, designer, general contractor, andsubcontractor with some input frommaterial suppliers.

Ultimately, roundtable participants hopeto translate some of the industrysconcerns into legislative action. I think thegoals are to implement solutions to theissues identified within the roundtables,said Raimondo, and as CAMsGovernment Affairs Committee Chairman,appropriately influence legislative issuesthat are fully aligned with CAMs position,as well as those positions or issues wewant to shape legislatively in order todeliver an improved pro-businessenvironment for our CAM members.

In terms of tangible initiatives, we would loveto see some positive movement beginning in firstquarter 2015, particularly in terms of influencinglegislative issues to strengthen our industry, saidRaimondo. Also, with the elections coming, inhaving a strong unified voice for the constructionindustry in Michigan, we can support thoselegislative officials who are sensitive to ourissues. Beyond 2014 The third roundtable may not be the last step.Steck suggests a series of smaller roundtablecommittees composed of participants who wantto be on a solution-solving team for a particularissue. CAM should sponsor a six-month orquarterly business roundtable, suggestsRaimondo. Steck adds, I think what is important is thatwhen we fix these issues, everybody benefits. Itsa great industry, but we have to get back to whatit is all about. Its about building successful,creative and wonderful projects with and for goodpeople that will provide opportunities and jobs forour area. Koehler offers his thoughts: CAM isdedicated to finding solutions on behalf of theentire industry through educating, legislating andadvocating. Our intent in convening thesegroundbreaking roundtables is to provide theindustry with a way forward. For more information, please contact CAMPresident Kevin Koehler, (248) 972-1101.

The goals are to identify, agreeon and implement solutions tothose issues that are most

important to CAM members, ourindustry and our owner-clientconstituents, meaning those

stakeholders or companies thatsupport our businesses.

John A. Raimondo, PERoncelli, Inc. Director, CAM Director and Chairman

of CAMs Government Affairs Committee

#1 classified directory for contractors

B2B construction &design tradeshow

Labor contract negotiations & dispute resolution

Exclusive healthcare insurance program

Construction project news and planroom services

Business networking& social events

Legislativeadvocacy

Dividend-producingworkers comp program

Safety consulting& training

Michigans foremostconstruction industrymagazine

Professionaldevelopment

Superior-ratedfull-servicecredit union

To take advantage of these benefits and more, e-mail us at [email protected], or call 248-972-1000 for more information.www.cam-online.com

*OFFER AVAILABLE TO NEW MEMBERS UNTIL SEPTEMBER 15TH, 2014.

Construction Association of Michigan

43636 Woodward Avenue

Bloomfield Hills, MI 48302

248-972-1000 Fax 248-972-1001

www.cam-online.com

ONE INDUSTRY. ONE RESOURCE. ONE CAM

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

Order #1885Deadline: 9/15/14- -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- -

1 YR Membership

$295

Initiation Fee

$90

Buyers Guide Listing Incl. Online $32

Classified Listing

$26

1/6 Page CAM Magazine Advertisement $495

1 YR Magazine Subscription $40

1 Month Construction Project News $100

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

TOTAL COST

$1,078

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

TOTAL MEMBER SAVINGS $783

1 YR Membership

$295



Become a member of the oldest and largest construction association in North America

Get listed in the #1 go-to classified guide for contractors, in print and online

Gain access to over $1.1 billion per monthin construction projects

Advertise in an award-winning publication with 4,000 print and online subscribers

Membership Benefits and Services

Find More Work. Get More Customers.

Initiation Fee

$90



1 YR Magazine Subscription $40



TOTAL COST

$1,078$295


The Michigan Legislature spent the spring and early summer workingon some tough issues facing our state. In some cases they weresuccessful, like completing budgets, assisting the City of Detroit inits bankruptcy, and increasing the states minimum wage. However, theywere still unable to come up with a comprehensive transportation fundingoverhaul.

Road fundIng The legislature made a strong push to pass a major transportationfunding overhaul prior to their summer adjournment, but were unable todo so. While the Senate did pass some of the transportation funding billsthat came over from the House, they were mostly minor pieces and didnot generate near the $1.2 $2 billion that most suggest is needed toproperly fund Michigans road and bridge infrastructure. The biggest point of contention right now is what plan is used to raisea bulk of the money for the roads. Some legislators are opposed to or verycautious about a large gas tax increase, or increase to vehicle registrationfees, while others would like to see some of the funding come from a taxincrease of a different kind. House Minority Leader Tim Greimel (D-AuburnHills) has also said that increased fees for overweight trucks must be partof the final solution. The House and Senate spent the final weeks of the spring debatingvarious funding plans including scraping the 19 cent per-gallon gas taxand replacing it with a 6-7 percent tax on the wholesale price of fuel. Thisplan would ensure that as the price of gasoline increases, so does therevenue for infrastructure. Senate Majority Leader Randy Richardville (R-Monroe) also wants to see the tax linked to the rate of inflation to avoidthe current road funding crisis in the future. After the realization that a major plan would not get done before the

summer break, the Senate and House adjourned and announced that aTask Force will be assembled this summer that is bi-cameral and bi-partisan to discuss a solution.

Budgets The legislature passed a $37.3 Billion General Budget and a $13.87Billion School Aid budget in June that includes spending for the 2014-15Fiscal Year. Some of the features of the budgets are: A 7.4 percent increase for revenue sharing to local communities in

Michigan. A roughly 4 percent increase to the school aid funding. $268.8 million to cover teacher retirement costs. $50 million for film incentives. $8 million for financially distressed cities, villages and townships. A 0.4 percent increase to the Department of Corrections (DOC) budget.

This includes 20 new employees for prisoner education. $94 million to the Budget Stabilization Fund (Michigans Rainy Day Fund). 100 new state troopers, 31 motor carrier operators, and 25 conservation

officers. $5 million to fight invasive species and $1 million to promote increased

recycling in Michigan.

gRand BaRgaIn foR the cIty of detRoIt In mid-June, Governor Snyder used the Globe Building in Detroit as thelocation to sign into law what is being called The Grand Bargain. Thisnine-bill package increases state funding to the City of Detroit in exchangefor increased oversight as a result of its bankruptcy.

Government AffairsCommitteeLegislative Update

By Jason Wadaga, V.P. of Government Affairs, Kindsvatter, Dalling & Associates


Included in the legislation were reforms suchas creating a Financial Review Commission tooversee Detroits finances, adding a ChiefFinancial Officer (CFO) for the city and requiringrevenue estimating conferences similar to thoseof the legislature. The bills also made changes to the cityspension system. However, the biggest piece ofthe package was a transfer of $194.8 milliondollars from the State of Michigans BudgetStabilization Fund (Rainy Day Fund) to the Cityof Detroits retirement systems. The Governor used the Globe Building todraw comparisons of the buildings comebackand that of Detroits comeback with help fromthis legislation.

mInImum wage IncRease In late May, Governor Snyder signedlegislation to increase the minimum wage inMichigan. The legislation will gradually increasethe wage to $9.25 an hour by 2018. The firstincrease, to $8.15 an hour, would take effect inSeptember, then up to $8.50 at the beginning of2016, $8.90 in 2017 and $9.25 in 2018. Beginning in 2019, the increases to the wagewill be linked to the lesser of a rolling five-yearaverage boost in the Midwest consumer priceindex, or a 3.5 percent increase. An increase to the states minimum wage hadbeen a hotly debated issue after the groupRaise Michigan had been gathering signaturesto put an initiative on the ballot for the Novemberelection that would have more drasticallyincreased the wage to $10.10 by 2017.

hIgh school cuRRIculumchanges Legislation allowing more flexibility for highschool students and their course curriculum haspassed the legislature was signed signed intolaw by the Governor in June. Rep. Ed McBroom(R-Vulcan) and Rep. Joel Johnson (R-Clare)joined with their colleagues from the UpperPeninsula (Sen. Tom Casperson R-Escanaba,Rep. Scott Dianda D-Calumet and Rep. JohnKivela D-Marquette) to pass house bills 4465and 4466. The lawmakers felt the current curriculumrequirements for students in Michigan were toorigid and didnt assist students who wanted topursue careers in vocational educationprograms. The legislation should allow studentswho have an interest in a particular careerbecome more job ready.

Lawyers Specializing In Construction Litigation

Patrick A. Facca Gerald J. Richter Bruce M. Pregler

6050 LIVERNOIS TROY, MI 48098

PH. 248-813-9900 FAX 248-813-9901WWW . F R P L AW . C O M

Contract Disputes Corporate Matters Lien & Bond Claims

A/E Liability Arbitration Construction Claims

FACCARICHTER &PREGLER,P.C.

Troy, MI 248.680.0400 Ann Arbor, MI 734.390.9330 Lake Zurich, IL 847.353.8740

Smart.Results.Fast.

When decision-makers hit the go button on the final phase of this highly visible $230 million infrastructure investmentEPPI]IW[IVISRXLIHIWMKRFYMPHXIEQXSVIEGLXLIRMWLPMRIUYMGOP]Smart.Results.Fast. G2 provided geotechnical support throughout design, which continued even as construction began, and delivered expedited QC testing on soils and concrete for the entire team. Mission accomplished.

LEARN MORE about this project @ www.g2consultinggroup.com/ambassador-bridge-gateway

Driving the Fast Lane

AMBASSADOR BRIDGE GATEWAY

cision-makers hit the go button on When dethe final phase of this highly visible $230 million infrastructure inv

RSIVI[WI]IPPESmart.Results.Fast.

cision-makers hit the go button on the final phase of this highly visible $230 million

estmentinfrastructure invLGEIVSXQEIXHPMYFRKMWIHILXR

Smart.Results.Fast. G2 provided geotechnical support throughout


cision-makers hit the go button on the final phase of this highly visible $230 million

]POGMYUIRMPLWMRILXL G2 provided geotechnical support throughout


design, which continued even as construction began, and delivered


expedited QC testing on soils and concrete for the entire team. Mission accomplishe

MOREARNLE about this projeyabridge-gatew



expedited QC testing on soils and concrete for the entire team. dMission accomplishe .

ct @ about this proje www.g2consultinggroup.com/ambassador-


0Troy, MI 248.680.0400 Ann Arbor, MI 734.390.9330 Lake Zurich, IL 847.353.874

Smart.Results.Fast.

expedited QC testing on soils and concrete for the entire team.

www.g2consultinggroup.com/ambassador-


Building the world is all in a days work for the construction industry.Leave it to a past president of a construction firm to take on the taskof helping to rebuild Michigans economy. Now chair of the MichiganSenates Economic Development Committee, Sen. Mike Kowall, R-WhiteLake Township, once managed Accurate Woodworking, Inc., the Kowallfamily enterprise currently celebrating 60 years in business. Kowalls economic acumen in the small business arena has earned himan impressive accolade: the Small Business Association of Michigan(SBAM) recently named Kowall Legislator of the Year. Sen. Kowall hasbeen a champion for small business during his years in both the stateHouse and state Senate, said SBAM President and CEO Rob Fowler in aSBAM press release. His excellent voting record on small business issuesdemonstrates his willingness to fight for the success of Michigansentrepreneurial economy. Over 350 small business owners and supportersattended the award presentation during SBAMs 45th annual meeting onJune 19, 2014 in Lansing.

a constRuctIon colleague In the state senate Kowalls deep roots in the construction industry offer Michigancontractors a savvy senator who has lived the business. In fact, Kowallentered the political arena because of two thorns in his own side as acontractor and small business owner: the Michigan Business Tax (MBT)and the lack of skilled trade education. Kowall made repeal of the tax histop priority from the very beginning of his political career. Post-MBT repeal,Kowall is now joining his colleagues and Gov. Snyder in promoting morefunding for skilled trade education. Kowall himself worked as a carpentryapprentice in his youth. Kowall encourages contractors to call and talk to their legislators abouttheir concerns. There are people in the Michigan Legislature who dounderstand the construction industry, said Kowall, who is in the top ranksof construction-oriented state senators. We are willing to work with them,because we do know what a rough time the industry has had over the lastdecade. We are very concerned about the loss of skilled labor. We arevery concerned about what we are going to do to reinstate the interest ofyoung people in the building trades. Kowall encourages the industry to join forces in a trade association. Injoining a trade association, especially the Construction Association ofMichigan (CAM), you have the ability to interact with people in your industryor people in similar industries, said Kowall. It gives you the ability to shareideas and to speak in a unified voice to the Legislature. Acting alone as an individual makes Kowall think of a saying from an oldAesops fable. You can break one stick, but when you put a bunch ofsticks together you cant break them; that is how important CAM is to theconstruction industry, said Kowall.

the mIdas touch In whIte lake Contractors have a colleague in the state Senate who has spent a lifetimeworking in a thick mix of politics, development, construction and business.Kowall served in the Michigan House of Representatives from 1998 to 2003before globetrotting to China, Mexico and the Caribbean as a political liaisonfor an assortment of construction companies. Returning stateside, he waselected supervisor of White Lake Township. Kowall accelerated economicdevelopment in his home community, ultimately delivering $100 million intaxable value along the Townships own portion of the M-59 corridor in lessthan four years. Kowalls home stretch of M-59 soon was host to Meijer, Kohls, JCPennyand an assortment of other developments, including several new subdivisionsand over 5.5 miles of new sewer and water lines. White Lake Townshipsvery own economic boom resulted in the generation of over 3,500 new jobs.Consequently, White Lake weathered the Great Recession with money in thebank and without any layoffs of police and fire personnel. Witness Kowalls Midas touch in action: A shopping center developerneeded a local building permit. Because of a local ordinance, the buildingpermit could not be issued until several state permits were granted. At thetime, Michigan was in the middle of a government shutdown. What to do? Kowall convened a special Township board meeting on a Friday afternoon.After convincing the entire board, We overwhelmingly granted him hisbuilding permit, said Kowall. He walked out the door Friday afternoon withhis permit, the foundations went in on Saturday and the retailer signed thecontract on Tuesday or Wednesday. That store is now No. 20 in the countryin profitability and it is No. 1 in womens apparel. Cutting through red tape and streamlining the development process waspart of Kowalls recipe for economic development for White Lake Township.Forget about bringing home the bacon. Think pan-seared scallops andbaked Michigan brie, for this approach brought the Root Restaurant to WhiteLake Township. The Detroit Free Press named Root Restaurant of the Yearin 2012 and Hour magazine granted a Best Chef award in 2013. The restaurant owner had approached another Oakland Countycommunity, but the red tape and cost of a liquor license proved to be toodaunting. Kowall cut through the red tape, streamlining the process ofobtaining the liquor license and reducing its price to the amount it costs toprocess the paperwork from the State of Michigan. Its about makingbusiness happen, said Kowall. If you want a quality restaurant or business,you cant be adversarial.

autonomous vehIcles: movIng mIchIgan foRwaRd Elected to the state Senate in November 2010, Kowall is applying hisstrong political skills to boost the economy of the entire State of Michigan.Kowall worked with Gov. Rick Snyder for over a year to pass the Autonomous

Senator Mike Kowall: Making Business Happen


Vehicle Bill. The amazing abilities of autonomous vehicles include self-parking, car-to-car communicationfor collision avoidance and self-stopping at red lights. Autonomous vehicles will have in excess of a trillion dollar effect on the automotive industry here inMichigan, said Kowall. It is going to do to the automotive industry what Henry Fords assembly did inthe past century. The bipartisan legislation allows automakers to test autonomous vehicles on public roadways andpromotes what is called Wave technology, essentially Wi-Fi for cars. California, Nevada and Florida havealready approved autonomous vehicle testing, making Michigan the fourth state to enact such legislation. As the main sponsor of this legislation, Kowall knows full well the importance of keeping this technologyin Michigan. Other states were coming to Michigan to get the technology out of the University of Michigan,Michigan State University and Western Michigan University, said Kowall. Why should we let other statescome to Michigan and take the technology? Keeping this technology in Michigan will dramatically boost the states economy and the constructionindustry. New and expanding companies will fuel demand for the construction of new space and thehiring of new personnel, said Kowall. Kowall worked his magic to make it happen. We had extensive hearings on the bill, said Kowall. Asthe main sponsor of the bill, I told Sen. Rebecca Warren, D-Ann Arbor, who describes herself as the mostliberal person in the Legislature, what I was doing and how this bill benefits the University of Michigan andher community. She was the second person to sign. When people saw that a conservative republicationlike myself and Rebecca Warren, a liberal democrat, were on board, everybody else signed on. Thelegislation passed unanimously in the state Senate, and there was only one no vote in the state House.The core difficulty was negotiating with automotive and software companies that were intent on protectingtheir intellectual property. Enhancing the penalties for the theft of scrap metal and blocking cash sales is another recent legislativeboost for the construction industry, said Kowall. Overall, the Michigan Legislature has improved theconstruction and business climate by revamping the tax code and making changes in unemployment andworkers compensation. These changes have made it easier to do business in Michigan, said Kowall.Getting rid of the MBT and just the simplification of business taxes have been a big deal for smallcompanies.

JumpstaRtIng mIchIgans economy Kowall has a host of innovative strategies and plans to jumpstart Michigans economic engine. Kowallwants to introduce the concept of pre-approved properties to Michigan, using Indianas program as atemplate. Indiana compiles lists of pre-approved properties for commercial and industrial developmentsfrom local units of government. I want to do that in Michigan, hopefully within the next four years,said Kowall. In this system, a European company, for example, can go online and find a building site meeting itscriteria. They can go online and find pre-approved sites in Michigan, said Kowall. They can find outwhere the expressways are, if water and sewer is available, and other items. They will know all of thatinformation before they even put a site plan together. Pre-approved sites would dramatically slash the time needed to develop a property. When you areconstructing a building it is not about tax incentives, credits or breaks its all about time, said Kowall.Your main job is to get that building completed so your customer can get cash flow going. Kowall has spoken to other senators and many agree that the Legislature should focus on pre-approved properties. Bedroom communities that want to remain bedroom communities without anyfurther commercial and industrial development merely opt out of the program by not placing propertieson the list. The pre-approved properties concept would work in concert with the county, said Kowall. I havespoken to the Michigan Township Association, and they have agreed to work with us in that regard. Itstill gives the local community control, but at the same time, it tells the world, we are either open forbusiness or we are not. Currently, Kowall has passed Port Commission bills out of the state Senate; they currently reside inthe state House. Michigan has more shoreline than any other state other than Alaska, and weve neverhad a unified Port Commission, said Kowall. The bills allow for bonding out of very large projects,such as grain elevators, a new lock at the Soo, short-haul rail and other shoreline developments. APort Commission would aid improvements in Macomb Countys golden mile along Lake St. Clair, inboth Port Hurons and Saginaw Bays shipping facilities and along Detroits riverfront. If re-elected, Kowall is aiming to be the state Senate majority floor leader. I will be the one in chargeof what bills are run, said Kowall. Today, Michigans construction industry has a strong ally and partnerin Mike Kowall. After a successful November election, the construction industry will have an even morepowerful ally in the state Senate.

New Developments in Southeast Michigan Mike Kowall, R-White Lake Township, servesMichigans 15th State Senate District, including thetownships of Commerce, Highland, Holly, Lyon,Novi, Milford, Rose, West Bloomfield and WhiteLake and the cities of Novi, Orchard Lake, SouthLyon, Walled Lake, Wixom and part of Northville.He mentions some of the large developments inthese communities and in the rest of SoutheastMichigan. The former Ford Wixom Plant will now host amulti-million dollar development for General Trailer,a company providing motorhomes, campers andtrailers. I was chasing them for a good six years,said Kowall. In addition, a 100-acre commercialsite in his district is on the brink of being sold anda major development launched in the near future. A host of hospital projects is also on the boards,including a potential expansion of up to $1.5 billionproposed for the campus of the Henry Ford WestBloomfield Hospital. The proposed expansionmay include a hotel, a rehabilitation center and ahealthcare research and development facility.Other hospital projects include a complete geriatricvillage for senior assisted living at ProvidenceHospital in Novi; an expansion of McLaren Hospitalin Clarkston; and an assisted living facility forveterans in Genesys Hospital that was once partof his district. Every hospital is talking aboutexpansion, said Kowall. St. Joseph MercyHospital held an open house for its new 300,000-square-foot South Tower in Pontiac in late April2014. Kowall is looking forward to new developmentsin Detroit, including two new condo high-riseprojects on the riverfront east of downtown Detroit.The new Events Center - the new Red Wingsarena just the arena and the infrastructure is 500million, said an enthused Kowall. That wholearea will become developed with high-endhousing, shops and other entertainment venues.In addition, the M-1 Rail will really makedevelopment explode. Clearly, Detroit and itsnorthern neighbor are primed for an exciting arrayof design and construction opportunities.


When it comes to indemnity contracts, its like Dodgers pitcherElwin Preacher Roe said when he was yanked from the gamein the second inning: Sometimes you eat the bear andsometimes it eats you. There are some things an indemnity-alert companycan do to increase the odds of eating that bear. The story of what Michigans Supreme Court recently called the troublednatatorium roof at the Sherman Lakes YMCA is a poster child for whatswrong with indemnity lawsuits. Theres too much of it and it lasts too long.The project completed in 1999. The youngest swimmers then are nownearly old enough to be lifeguards. But the indemnity lawsuit over the peskynatatorium moisture problem continues. There are already four appellate opinions in the case. The attorney feesincurred must be astounding. The hours that construction companies spentin service to such a lawsuit must be equally astounding. And the mostrecent opinion isnt even the end of the story. After finding for the generalcontractor, the Supreme Court sent the case back to the trial judge todecide if it should recover attorney fees. There are steps companies can take to help avoid such litigation. Andthere are strategies for making life in such lawsuits less hazardous to acompanys health and bottom line.

A few points to set the table. There are four main strategies for companiesto manage the risk of death-by-lawsuit: (1) Do good work and do it safely;(2) Have adequate comprehensive general liability insurance, E &O, andexcess insurance, including for breach of indemnity contract claims; (3)Carefully monitor indemnity contracts; and (4) Demand, or fulfill, contractsrequiring additional insured coverage. On the do good work point, take your own and your industrys Best-Practices advice. Be generous in advising your fellows. Safety seminars likethe ones CAM offers are valuable. On maintaining proper insurance, heres the bare bones. If all yourinsurance ducks are in a row, when you agree to indemnify someone, in awritten contract signed before a loss happens, you will have insurancecoverage up to your policy limits. The claim wont be excluded by thecontractual exclusion in your policy because the contract will be an insuredcontract and the contractual exclusion has an exception for that. Thereare some fine points that can change this. But basically your insurer willunderstand it owes you a defense and coverage when youre sued forbreach of an indemnity contract. In the lingo of the industry, you will havecontractual coverage. Dont ever buy a policy that excludes such

coverage. The premiums are lower for a good reason: you wont be buyingwhat you need. On additional-insured issues, most CGL policies now includeendorsements that expand coverage to anyone you agree to add asadditional insureds. Thats what your insurance agent should be supplyingyou with. Its unlikely youll need to add additional insureds to your policy,one by one, as in the olden days. But there are many, many versions of these so-called blanket orautomatic additional-insured endorsements. And a number of them arentvery blanket or in any way automatic. They can have a completed-operations exclusion. Or a sole-negligence exclusion. There are many othervariants. Purchase the broadest form of this endorsement you can. Andsometimes you will need to add an endorsement for a specified additionalinsured if the contract youve signed requires a particular ISO (InsuranceServices Organization) version of the endorsement. You are being asked to supply certificates of insurance. Youre askingfor them too. And insurance agents supply them and type in that someoneis an additional insured on some policy for a particular job. Thats nice. Butit doesnt make it so. Every certificate of insurance, in bold capital letters in the top right-handcorner of that ACORD form that agents use, says that it doesnt changethe insurance afforded under any policy. To meet your additional-insuredcontractual obligations, and to avoid a lawsuit (for which you will not haveinsurance coverage) over whether you breached your contract to provideadditional-insured coverage, your policys additional-insured endorsementmust match what you agreed to provide. Admittedly, this has been a lot of table-setting. But indemnity contractsare just one of the industrys risk-shifting devices. We like belts, suspenders,and an extra set of trousers. And sometimes our precautions dont playnice together.

heRe aRe some pRactIcal tIps fRom 35 yeaRs ofIndemnIty lawyeRIng.

Do what you can to make all your indemnity promises endup in one contract term. More indemnity contract languageis usually worse, not better. If youre the bear, theres no broader term than any and all. Combiningsuch broad words with phrases like allegedly arising out of theperformance of your work makes for strong risk-shifting. Thats what the

CONSTRUCTION LAW

Managing YourCompanys IndemnityRights and ObligationsBy Noreen L. Slank


bear wants. But once you add in a limpor even an overly specific indemnityclause, you create room for argumentabout what language controls. And if youinadvertently also manage to sign acontract where you agree to indemnifythe party that agreed to indemnify you (ithappens), thats not a recipe for anuncomplicated lawsuit. If youre on the uncomfortable end ofan indemnity agreement, watch for step-over/step-through clauses that more orless say you agree to assume all theindemnity obligations that Ive agreed toassume toward others. Such clauses arealmost never written so clearly, though. Ifyou arent in the cat-bird seat, youprobably wont be able to control how the contract reads. But you mightbe able to add language the gist of which is the indemnity obligations andrights that govern [me] are set forth in this subcontract and no place else.Such language may pass muster. At least make the bear say no. You maybe able to influence who gets to sue you for breach of indemnity obligationswhen everyone tenders its defense to you and your insurer politely tellsthem all to pound sand.

Deftly manage your business risk.An important business source may be

sued by someone and then demand youdefend them and agree to pay anyjudgment. It wants you to say yes.Maybe you want to say yes even if youdidnt do anything that caused thelawsuit. But the decision about how torespond to tender typically isnt yours tomake. Usually its your insurers call. Youmust be hesitant to squawk because yourinsurer is entitled to have you cooperatein your defense. And non-cooperationjeopardizes your insurance coverage.

Its not an easy road. If youre the bear,dont be a bully. You have your owninsurance policy. Your lawyer is typically

insurer-assigned and you dont have to pay (or dont pay much) for yourdefense. Let the lawsuit unfold the way your insurer wants. Dont let thelawsuit encourage you to cut off a valued, skilled construction partner. Ifyour indemnity lawsuit turns out to be something like the natatoriumnightmare, the reality is that its your subcontractors insurer driving thelitigation bus. And your own insurer is fueling it. If youre in the lunch position, make the bear understand that you arent

Big Discounts for CAM Members!

Commercial LinesBusiness Insurance

Personal LinesAuto & Homeowners Insurance

O General LiabilityO Property InsuranceO Contractors Equip.O Commercial AutoO Package Policies

O Employment LiabilityO Business UmbrellaO Builders RiskO Installation FloaterO Multi-Policy Discounts

A Voluntary Employee Benefit for yourself and employees fromMichigans most respected Insurer of contractors

and their valued employeesAutomobile

BoatsRVs

Personal Umbrella

HomeownersCondos

Vacation HomesRenters Insurance

Take advantage of CAMsendorsed program for bothCommercial Lines and Personal Lines Insurance.

Sherman Lakes YMCAis a poster child for whats wrong with indemnity lawsuits.

Theres too much of it and it lasts too long.


your insurer and you cant make it do what you want. Invite them to try anddont get in their way. If you decide that the threat to the businessrelationship is real, have your personally retained lawyer write to your insurer.The letter must do absolutely nothing to jeopardize your defenses to theindemnity lawsuit because you are going to also send this letter to the bear. The letter should recite all theindemnity language withouteditorializing. It should point out that youknow your insurer will zealously defendyou against the claim. But if a courtrejects your argument, any settlement orjudgment will shift to you and then toyour insurer, along with all the costs ofyour adversarys defense to the principalclaim. If the indemnity contract saysyoull have to pay attorney fees for youradversary prosecuting its indemnitycase, this would be a good time to point out that contract language (withoutagreeing to its effect). Ask your insurer to seriously reconsider youradversarys tender. And if your adversary is also an additional insured under your insurancepolicy, now would be a good time to point out where, in your subcontract,such language appears. Because sometimes the bear or its insurer is sobusy growling, it doesnt make the duality of its relationship to your insurerclear when it tenders. If the business risk is high, have your lawyer write a second letter to your

insurer. That one shouldnt be sent to your adversary. It can be doom &gloom, in all the specific ways lawyers will explain, dwelling on why youregoing to be toast as far as the indemnity lawsuit is concerned. It should tryto persuade your insurer to assume your adversarys defense because thatswhat the subcontract calls for and because thats what is in your insurers

best interest. If your insurer awaits the end of

the indemnity lawsuit, it will pay anindemnity judgment that includes youradversarys attorney fees and it will alsoincur the expense of defending you. Donthave your lawyer overdo it, but wheninsurers dont defend who theyresupposed to and it hurts their insured thatcould be bad faith. There could beconsequential damages because youradversary will withhold future business if

this isnt resolved the way it should be.

Preserve any contracts you sign that have indemnity oradditional insured terms. One almost-good excuse once emerged for a client not having a copyof its indemnity contract: Hurricane Katrina.

Keep all your contracts, jobsite by jobsite. In Michigan, you can sue orbe sued for contractual indemnity for six years after the contract is allegedlybreached. Exactly when such a breach occurs is a tricky legal question. Its

CONSTRUCTION LAW

rXXXBMMDSBOFDPN

ALL Erection & Crane Rental Corp., an Equal Opportunity Employer

BUILDING MICHIGANJeffers Crane Service, Inc. is the proven lift partner you need. Jeffers provides professionally maintained bare and manned crane rentals from 2-1/2 tons to 1000-tons. Our vast, technologically advanced fl eet is available right now.

Industry leaders in Michigan choose JEFFERS

Storage is cheap.Lawsuits are expensive.

Keep all the contracts you sign.


probably when a tender of defense is refused.But a breach doesnt happen the day an injuryhappens. So indemnity lawsuits can legitimatelytake many years to get started.

Storage is cheap. Lawsuits are expensive. Keepall the contracts you sign.

Indemnity contracts should be signedbefore an injury or loss happens, notafter. Occasionally, work begins before contracts aresigned. If youre the bear, dont let that happen.It is no part of good. If youre the lunch, once theres blood on thepavement or the natatorium roof is alreadyleaking it is a terrible time to be signing indemnitycontracts. Your insurer might decide it defeatsyour contractual coverage. It might be wrongabout that. But in high-stakes litigation, addingthat issue into the mix isnt wise. If youre asked to sign a contract after the loss,quickly let your insurer know about the demand.Then you will honestly be able to tell youradversary that your insurer directed that you cantsign the contract now because otherwise youwont have any insurance coverage for theirclaim.

Promptly tell your insurer aboutlosses or injuries that might activateyour indemnity obligations. Prompt notice of lawsuits or potential claimshelps keep your insurer satisfied. Thatsimportant. If late notice prejudices your defense,your insurance coverage will be jeopardized. Andsome insurers might have an exaggerated senseof what prejudice is. Promptly tell your insurer about claims andpotential claims. Dont try to manage th

august 2014 cam magazine

Documents