Southeastern The official publication of the Southeastern Construction Owners and Associates Roundtable 2019 VOICE The Inside: Helping Students Choose Construction Economic Forecast for the Southeast SCOAR Conference Addresses Shortages Contract Questions About Modular Construction And more! Taking SCOAR to New Heights 2019 // www.scoar.org 5 ON THE COVER: The Southeastern U.S. region is a hot bed for industrial, chemical and heavy manufacturing activity. That’s why a membership in SCOAR is so important; the resources you’ll have access to can help contribute to the success of your projects and company. Published For: THE SOUTHEAST CONSTRUCTION OWNERS & ASSOCIATES ROUNDTABLE 501 Old Greenville Highway Suite 8 PMB 393 Clemson, South Carolina (864) 633-4883 Email: staff@scoar.org Web: www.scoar.org Published By: Matrix Group Publishing Inc. Please return undeliverable addresses to: 5605 Riggins Court, Second Floor PO Box 41270 Reno, NV 89504 Toll-free: (866) 999-1299 Toll-free fax: (866) 244-2544 www.matrixgroupinc.net President & CEO Jack Andress Operations Manager Shoshana Weinberg sweinberg@matrixgroupinc.net Publisher Jessica Potter Editor-in-Chief Shannon Savory ssavory@matrixgroupinc.net Senior Editor Alexandra Kozub akozub@matrixgroupinc.net Editors Jenna Collignon, Kaitlin Vitt Finance/Administration Lloyd Weinberg, Nathan Redekop accounting@matrixgroupinc.net Director of Circulation & Distribution Lloyd Weinberg distribution@matrixgroupinc.net Sales Manager – Winnipeg Neil Gottfred Sales Manager – Hamilton Jeff Cash Sales Team Leader Jim Hamilton Account Executives Andrew Lee, Bonnie Petrovsky, Brenda McPhee, Brian MacIntyre, Cheryl Klassen, Colleen Bell, Frank Kenyeres, Jason Wikis, Julie Welsh, Renée Kent, Rob Gibson, Rondal Gardner, Sandra Kirby, Tanina Di Piazza Advertising Design James Robinson Layout & Design Cody Chomiak ©2019 Matrix Group Publishing Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without prior written permission of the publisher. The opinions expressed in this publication are not necessarily those of Matrix Group Publishing Inc. SCOAR LEADERS 6 A Message from the President 7 A Message from the Outgoing Executive Director 8 A Message from the Executive Director FEATURES 9 Expanding the Reach of Influence 11 Southeast Defies General Softening in Private Construction 16 SCOAR Breaks Ground with Keynote Discussion on Attracting Future Workers LET’S TALK LEGAL 18 Legal and Contractual Issues in Modular Construction—The Same But Different MEMBER SPOTLIGHTS 20 Owner Member Profile: Tampa Electric 21 Associate Member Profile: Graycor Southern NEWS & RECOGNITIONS 22 TOPS Winners for 2019! 22 SCOAR Training Grants 22 SCOAR Scholarship Winners for 2019 and Sponsor Recognition 22 Thank You to This TopGolf Sponsor 23 The 16th Annual Golf/Fishing Scholarship Fundraiser 23 SCOAR Skilled Trades Scholarships 24 Why Join SCOAR? 25 Join SCOAR to Start Networking With All Our Members! 26 INDEX TO ADVERTISERS Southeastern 2019 VOICE The TABLE OF CONTENTS Southeastern The official publication of the Southeastern Construction Owners and Associates Roundtable 2019 VOICE The Inside: Helping Students Choose Construction Economic Forecast for the Southeast SCOAR Conference Addresses Shortages Contract Questions About Modular Construction And more! Taking SCOAR to New Heights 6 Southeastern Construction Owners and Associates Roundtable / SCOAR LEADERS // Steve Immel President SCOAR Thank you for providing me the opportunity to serve as president of the SCOAR organization. I recognize the responsibility, and it is my privilege and an honor. I’ve been a Duke Energy employ- ee for nearly 40 years and have had the opportunity to work in many Duke Energy organizations, including engi- neering, project management, supply chain and electric generation opera- tions and maintenance. These work experiences, along with my more than 10 years as a SCOAR member, have been most rewarding. My introduction to SCOAR was at one of the annual Longboat Key meet- ings. It was a very positive and valu- able experience. The number of peo- ple I met during that initial introduc- tion to the organization has opened doors, expanding my business con- tacts and relationships. SCOAR is a unique organization where its membership represents a complete vertical supply chain. Members include representatives from owner companies, engineering, EPC (engineering, procure- ment and construction), general contrac- tors, specialty contractors and material suppliers. The three conferences that are scheduled during the year provide valu- able networking opportunities to devel- op new business relationships while also maintain ongoing business relationships. The SCOAR organization will contin- ue initiatives that support and advance the construction industry. Workforce development is top of mind in today’s construction environment. The SCOAR Workforce Development Committee continues to engage in the southeast region, with educators and industry experts, to advance the skills of those starting a career in the construction trade. For example, the scholarship program awarded $38,500 during the May 2019 meeting to students pursuing careers in this growing industry. In addition to our workforce develop- ment initiative, the SCOAR membership committee continues a focus on growing owner members. Owner members have the opportunity to not only network with a vertical supply chain of construction providers but also share best practices and ideas. At SCOAR’s owners’ forum, owner members also receive opportuni- ties to benchmark results. Safe and event-free performance is extremely important to all SCOAR mem- bers. We will continue to engage the safety committee in sharing best prac- tices among the members and recognize projects and project teams for excep- tional safety performance. SCOAR has grown in membership, and member companies have enjoyed the value of the larger organization under Randy Bakel’s leadership as executive direc- tor for more than 12 years. Randy has suc- cessfully set a course for the organization and has continued to steer and maintain that course through his engaged board of directors and committee chairs. At the May 2019 meeting, SCOAR thanked Randy and his wife, Janet, for their years of loyalty and support of the organization and wished them all the best with new adventures that retirement brings. I’m excited to welcome Steve Greene as SCOAR’s new executive director. Steve, a long time SCOAR member and committee chair, will continue to steer this organization into the future and pre- pare our members for changes in this industry. Steve and his wife, Diane, will help us prepare for our fall 2019 planning conference to be held in Greenville, S.C. Thank you, Steve and Diane, for your leadership in the coming years. I’m excited about what the future holds for our organization, and I hope you are too. Please do not hesitate to contact me or any of the board of direc- tors with questions or clarifications about the organization and its activities and initiatives. I hope to see you in Greenville at the fall meeting. Steve Immel President SCOAR From the President BOARD OF DIRECTORS PRESIDENT Steve Immel Duke Energy steve.immel@duke- energy.com VICE PRESIDENT Scott Straight LG&E KU scott.straight@lge-ku. com EXECUTIVE DIRECTOR Steve Greene SCOAR staff@scoar.org SECRETARY John Donahue HazTek jdonahue@ haztekinc.com TREASURER Brian Brogen Southeastern Construction & Maintenance brianb@secm.com PAST PRESIDENT Boyd Worsham NCCER bworsham@nccer.org DIRECTORS Ron Cobb PTS-Performance Technical Services rcobb@pts-group.com Patrick Duffy TECO pcduffy@tecoenergy. com Jody Johnson Moretrench Industrial j.johnson@moretrench. com2019 // www.scoar.org 7 Since 2006, my wife Janet and I have met and worked with many, many great people—all of you. We both want to thank you for your involvement and support, but most importantly, for your friendship. We will miss you all! Thank you! Randy Bakel Outgoing Executive Director SCOAR outstanding Board of Directors and Officers, you are in good hands going forward. SCOAR is an outstanding group of people In 2006, when I was asked to be the Executive Director for SCOAR (the Florida Construction Users Roundta- ble, FCURT, then), I wasn’t sure what I had signed up for. It didn’t take long to learn that it consisted of a group of men and women who were passionate about all facets of industrial construc- tion with a deep desire to make it bet- ter and more profitable in the South- eastern United States. While the association was limit- ed in membership back then, soon the enthusiasm and passion spread. Growth began—membership growing beyond my expectations—and is still continuing. It is quite gratifying to see what SCOAR has become, and what it has accomplished! As many of you know, I retired officially on July 1, 2019, and Steve Greene, formerly with the National Center for Construction Education and Research (NCCER), is now the SCOAR Executive Director. I know that many of you know Steve, but for those who don’t, let me share a little of his background. Steve has been active in SCOAR for many years, serving on our Board of Directors as Treasurer & Secretary, and chairing our Workforce Development Committee. In addition, Steve has a very solid background in our industry, having worked for several large EPC companies, for his own company and with the NCCER. Through the years he has worked with and established solid relationships with many of the key indi- viduals in our industry. If that isn’t enough, his assistant (and wife), Diane Greene, has a sim- ilar background! Together, with our / SCOAR LEADERS // From the Outgoing Executive Director Randy plans to spend lots of time with his wife, children and grandchildren.8 Southeastern Construction Owners and Associates Roundtable / SCOAR LEADERS // Steve Greene Executive Director SCOAR In 2005, when I was invited to par- ticipate in SCOAR, there were just 10 members. But as of June of this year we have 88 members—a credit to Randy and Janet Bakel who, for 12 years, provided exem- plary leadership that contributed to SCOAR’s growth! Not to mention, we have three new members joining in time for the September meeting, as well as over one dozen guests who we consider prospective members. SCOAR fosters innovation and breakthrough thinking on issues related to industrial construction to improve its members’ business perfor- mance. I think it is important for our members to know that our vision is to articulate and facilitate the continued importance of building and maintain- ing relationships between owners, con- tractors, suppliers and industry organi- zations, and to champion new relation- ships to provide growth and prosperity to you—and this great industry. Over the next 18 months, Diane and I will focus on membership out- reach, growth and retention. Each of you will receive personal telephone calls and e-mails throughout this peri- od to determine how we can provide quality, value-added service to your companies. We have been challenged by the Board of Directors to increase our owner members and continue to grow the number of general contrac- tors and associate members who have existing relationships with the owner community. It is our strategy to accom- plish the following four strategic goals during this period: 1. Provide meaningful topics with knowl- edgeable speakers at our program meetings. The topic areas that you have asked us to explore include workforce development, safety, constructability (innovation, qual- ity and technology) and “best prac- tices,” such as LEAN, and research and development, that other orga- nizations like the Construction Users Roundtable and CII also focus on delivering. 2. Identify meeting locations that are cost effective and offer members the opportunity to bring guests from the owner and general contractor com- munity, plus continue to provide net- working events that allow for mem- bers to develop relationships with each other and grow their businesses. 3. Enhance member committee involve- ment by developing thoughtful initia- tives and achievable actions in the areas of workforce development and safety that support Southeastern Unit- ed States construction activity. Some of these initiatives include funding grants to public technical schools to begin new, or enhance exist- ing, construction-related programs; raise monies for student scholarship awards for worthy construction man- agement, engineering and safety students in post-secondary colleges and universities; identify grants for members to pursue that will provide financial support for exemplary safety and workforce practices; and foster the growth of the Target Outstanding Project Safety (TOPS) Award program. 4. Re-tool the SCOAR website to be a valued member resource for news, reliable member contact information, best practices, organizational history and industry information. Congratulations go out to the Milton J Wood Company and Zachry Industrial for excellence in safety performance as recognized through the SCOAR TOPS Award program at the May meeting in Longboat Key, Florida. SCOAR members raised $38,500 for scholarships and technical school grants this year! In May, scholarships were awarded to students of construction management, engineering and safety programs at southeastern colleges and universities. These included Ajaylah Hicks, a student at Western Carolina Uni- versity’s School of Engineering & Tech- nology; Ricardo Aleman, a student in the University of Florida’s Civil & Coastal Engineering department; Ricardo Made- ro of the University of Florida’s Rinker School of Construction; and two students From the Executive Director in the Murray State University Construc- tion Safety program, Bernadette Carr and Robert Koenig. These scholarships were made pos- sible through the generous donations of Fluor, Graycor Southern, More- trench, NCCER and its Build Your Future Program, SCOAR and United Rentals. Donations totaling $16,500 were provided for skilled trades schol- arships and technical school grants by Fluor, Graycor Southern, Ironwork- ers/IMPACT, NCCER, Performance Technical Services (PTS), Southeastern Construction and Maintenance, Tampa Electric Company, Walker Contract- ing and Zachry Industrial. These schol- arship donations will be provided to technical schools and students par- ticipating in construction programs through SkillsUSA. I want to personally acknowledge the SCOAR Board of Directors who have entrusted us with the oversight of this organization. And to you—the mem- bers—for your encouragement and over- whelming support. 2019 // www.scoar.org 9 Simply put, there are not enough people choosing to become skilled craft profes- sionals and joining the indus- try. And to make matters worse, 41 percent of the current con- struction workforce will retire in 2031.1 With our workforce already at a short- age, the industry needs to act quickly and offset this loss of experienced, highly skilled craft professionals. How do we close the gap? By let- ting the industry lead. Through inter- acting with career and technical educa- tion (CTE) programs, the industry can advise, inform and serve these pro- grams. • Advise: Industry can advise pro- grams to make sure they are staying relevant and current. This helps stu- dents learn valuable and up-to-date information that will prepare them for their professional careers. • Inform: Industry can inform teachers and students about careers in con- struction and the skill sets required to enter the field. This will help stu- dents have a clear idea of how to get started in construction and what is expected of them. • Serve: Industry can donate materi- als2 and tools to educational pro- grams and can offer field trips and shadow opportunities for students. Industry involvement can play a critical role in the success of CTE programs. Overall, most craft professionals enter the field through CTE programs. These programs teach and train stu- dents on how to enter a career in con- struction and succeed. It is critical that industry helps programs flourish and provide mentorship and on-the-job training opportunities to students. The Southeastern Construction Owners and Associates Roundtable (SCOAR) has a history of helping stu- dents get educated and trained to join the construction industry. But this year, they decided to take it a step further. 16 years of giving For the past 16 years, SCOAR has raised money and given scholarships to students pursuing a career in the con- struction industry. Each year, the orga- nization holds a golf and fishing tour- nament that serves as a fundraiser for several scholarships that are awarded to hardworking students. In 2019, $38,500 was raised and awarded to students at a scholar- ship banquet. The money, donated by contractors, owners and members of SCOAR, helps students afford tuition, books or anything they need as they pur- sue a career in the crafts. This year, however, was a little different. A new approach While SCOAR continued to help stu- dents looking to join the industry through scholarships, they also decided to award grants to CTE programs. This way, the committee can have a larger impact on students who want to join the industry. When a scholarship is awarded to a student, the money goes to a single stu- dent who may or may not end up in a career in the industry. However, when a grant is given to a CTE program, the money can influence anywhere from 10 to 50 students who are benefitting from an expanded program, new textbooks or new tools. Grants allow more people to benefit from SCOAR’s fundraising, and there’s a greater chance that there will be students leaving these programs and entering the industry. Additionally, when giving grants to programs, they are not only getting funding but also a relationship with the industry. For every grant given to a CTE program, SCOAR will connect the program with someone from their organization. This contact will help the program ensure that they are spend- ing the money in the most effective way while also making a connection between industry and education. This connection is critical when it comes to closing the skills gap. The more CTE programs and training facili- ties understand what industry needs, the more prepared students are for the future. Additionally, providing students with real connections to construction businesses and employees can help students solidify their path to a career in construction. / FEATURE // By Kelsey Zibell, NCCER Expanding the Reach of InfluenceNext >