FEBRUARY/MARCH, 2013 Volume 1 No. 1 ABC of the Carolinas Honors Waldrop Mechanical Services with Three Eagle Awards ABC of the Carolinas Excellence in Construction Awards The Latest (but not the last) on CGL Coverage for Construction Defects in South Carolina Well We Didn’t Fall Off the Cliff… So Now What? 5 14 16 PHOTO CREDIT CLEMSON UNIVERSITY ABC of the Carolinas Honors Waldrop Mechanical Services with three Eagle Awards It’s common for a new ownership team to voice its commitment to the previous owners’ principles and philosophy regarding qual- ity, performance and customer service. It’s less common to be recognized by your peers for it. And it is truly rare to be honored by them not once or even twice, but three times in a single year. That’s just the achievement Waldrop Mechanical Serv- ices celebrated in November as it took home three Eagle Awards for construction excellence at the annual Associ- ated Builders & Contractors of the Carolinas awards ban- quet. The Spartanburg-based firm – which traces its roots back to 1970 — received awards for three different proj- ects: a major HVAC renovation at Greer High School (me- chanical projects, $5-$10 million); the expansion and renovation of the Lee Hall Complex at Clemson University (mechanical projects, $2-5 million); and an HVAC upgrade and manufacturing retrofit for the Bosch Rexroth facility in Fountain Inn (mechanical projects under $1 million). One of our niche markets is highly difficult, time-sensi- tive, renovation projects,” says company president Bill Caldwell, who took over ownership of the firm with Dennis Pruitt and Jamie Porterfield about a year ago. “”We wel- come the challenge of taking on the most difficult projects that others may shy away from due to the associated proj- ect risks. “Our cadre of quality, top-notch management personnel and highly motivated multi-skilled field craftsmen do what- ever it takes to achieve our customers’ project expecta- tions,” Caldwell adds. “This ‘can do’ attitude and corporate culture is demonstrated daily by our employees as they go beyond the call of duty to make sure the job gets done right. It makes our company different – it was something I sensed about our company as soon as I walked in the door on my first day at Waldrop.” Greer High School HVAC Replacement For example, the $7-million Greer High School project required extensive planning and detailed scheduling (in six phases), along with meticulous implementation. Although a number of unexpected conditions were found when parts of the existing system were demolished or exposed, the project was completed on time without any disruptions to students’ education. More than half of the school’s mechanical systems was updated. The contract required that no temporary class- rooms were to be built; that school operations were not to be affected in any way; and the HVAC system had to re- main operational at all times. Congratulations to Waldrop Mechanical Services We are proud to be part of your success. 5206 EDWARDS ROAD, TAYLORS, SC 29687 2 – February / March 2013 — The South Carolina Construction News 1-800-868-8907 Waldrop had just eight months to complete the job. Work began in De- cember 2011 and was finished in Au- gust 2012 just before the new school year began. No accidents were re- ported during that time. To meet these requirements, work was done at night, from about 5 pm – 2 am, as well as on weekends. (School security personnel had to be on-site at all times.) “This was a big sacrifice by our people,” says Waldrop project manager John Knox. “ Due to the pro- ductivity of our team, we were able to complete a lot more in less time than we had planned.” The last 30-90 minutes of each workday was spent cleaning up the site. “We had to maintain the school fa- cility, leaving the halls passable and keeping the building as spotless as the day before. We didn’t want the stu- dents to see that anything was going on,” says Eddie Arledge, who was Greenville County Schools’ project manager. (Waldrop also acted as the general contractor.) About half the project was com- pleted when school ended in June. Then the Waldrop work team quadru- pled to about 55 workers for the sum- mer as they had access to the entire facility for the first time. Even unexpected remedial work didn’t slow them down. “We found a lot more places that weren’t up to code than we thought, and they had to be brought up to standard,” Arledge notes. “But the Waldrop workers re- sponded well and stepped up and did whatever was needed.” “They executed really well and did good quality work,” Arledge continues. “We were all on the same page when making decisions, and that helped us maintain the schedule.” By project’s end, Waldrop had re- moved 32 rooftop packaged units, 23 split-system heat pumps and 37 through-wall packed fan coils. They were replaced with 120 new highly-ef- ficient variable refrigerant fan coils connected by 4.5 miles of copper re- frigerant piping. Each classroom in the school, originally built in 1998, re- ceived at least one new fan coil unit as well as a ducted outside air supply and return grill. ABC suppliers for the project in- cluded Hajoca (pipes, material, acces- sories), Hoffman & Hoffman (HVAC equipment), Palmetto Air and Water Balance (testing services), Creative Builders Inc. (GC services) and Guy M. Bety (insulation). Clemson University, Lee Hall Complex The $31-million project on Clem- son’s Lee Hall complex was challeng- ing because of the new technology involved. Observes Jim London, who repre- sented all the users of Lee Hall on the project, “This is one of the most excit- ing academic buildings in the country. The design team was committed from Day One to make this building as en- ergy efficient as possible, and we de- cided early on to push the edge of the envelope on this one.” Its energy con- sumption is the lowest on campus by far – its rate is considerably less then that of the second lowest energy- using building. The South Carolina Construction News — February / March 2013 – 3 The overall project included renovating over 100,000sf of the existing facility which houses Clemson’s schools of architecture, construc- tion science, landscape architecture, and visual arts, as well as the construction of a new addition of over 55,000sf, which just received LEED Gold certification. Features in- clude natural ventilation, daylighting from 25 skylights and a glass exterior skin, and a green roof. The new building also features something never before used in South Carolina (although common in Europe): a ra- diant heating and cooling system with an under-floor pip- ing system. The one at Clemson uses geothermal wells to provide temperature control by radiating through the con- crete floors. In addition, all plumbing systems and fixtures were designed around water conservation. Although Waldrop workers had worked with similar sys- tems in some small residential projects, they had never built one of this scope and size. Several team members attended a special school to learn proper installation tech- niques and then shared the knowledge with colleagues. They were also helped by product specialists and engi- neers from Uponor, the European manufacturer of the equipment and the largest manufacturer of flexible piping in the world. The major quality issues that had to be addressed were the proper installation of the flexible piping system and the underground, under-slab duct system, which had depths of 8 to 10 feet. A careful eye then had to be kept on these systems during the rebar and construction activities that followed. The use of geothermal power to heat and cool the water added to the project’s uniqueness. Waldrop had to drill 40, 500-foot-deep wells. 4 – February / March 2013 — The South Carolina Construction News Bosch Rexroth HVAC Upgrade – Manufacturing Retrofit The $848,000 HVAC upgrade at Bosch Rexroth’s conver- sion of a pharmaceutical distribution center into a manu- facturing facility put Waldrop’s extensive planning and scheduling skills to a tough test: they had to complete most of the work without the major equipment which didn’t arrive until very late in the HVAC installment sched- ule. CONTINUED ON PAGE 13 PHOTO BY SCOTT FRANCES “It was a phased project, so time and scheduling was very important,” says Jamie Porterfield, the Waldrop part- ner who acted as project manager. “We were one of the first contractors in, so we had to stay on schedule so as not to slow down everyone else. Our work is invisible – there are no traces of it – but it can be felt.” Work on the project began in September 2010 and was finished in April 2012. During that time, London, then an associate dean, spent much of his time on it. Contractors and designers met weekly. Holder Construction was the general contractor. McMillan Pazdan Smith served as ar- chitect of record, while Thomas Phifer and Associates served as the design architect. “Holder and Waldrop did well, and the building performs extremely well,” London says. “Their teams bought into the concept and pulled it off. The renovations also went smoothly, and Waldrop brought in the new systems with- out needing a lot of oversight. When issues came up, they always seemed to have things under control.” Says Mike Talbot, president of Talbot & Associates Con- sulting Engineers, who served as the mechanical engineer, “Waldrop did a good job and always responded quickly to any concerns we had.” Other ABC suppliers that worked on Lee Hall include Heat Transfer Sales of the Carolinas, Trane Comfort Solu- tions, Hajoca and Dean Hall Insulation. Associated Builders and Contractors of the Carolinas 11 th Annual Excellence in Construction Awards November 15, 2012 2012 GC Project of the Year Rodgers Levine Cancer Institute Carolinas HealthCare System Edifice, Inc. Wake Tech Community College – Building E Project of the Year Finalists Turner Construction Company UNC at Charlotte – Energy Production & Infrastructure Center KBR Building Group Duke Cancer Center Specialty Project of the Year Finalists 2012 Specialty Project of the Year Adams Electric Company Carolinas Medical Center – Central Energy Plant Starr Electric Company, Inc. Wake Forest Biotechnology Place SPS Corporation Duke Cancer Center Waldrop Mechanical Services Clemson University Lee Hall – Expansion/ Renovation The South Carolina Construction News — February / March 2013 – 5 2012 EXCELLENCE IN CONSTRUCTION Green Award Winner Balfour Beatty Construction Duke Energy Headquarters Interiors ––––––––––––––––––––––––––––––––––––––––––––– Free Enterprise Award Winner Turner Construction Company Harrah’s Cherokee Casino & Hotel – Casino Renovation/Expansion ––––––––––––––––––––––––––––––––––––––––––––– Schools – $2 - $5 Million Choate Construction Company North Carolina State University – J.W. Isenhour Tennis Complex Duke Energy Headquarters Interiors Eagle Winner Hercules Fence, Baker Roofing Company, Waterproofing Specialties, Precision Walls, Inc., VSC Fire & Security, Inc., Shumate Mechanical, Inc., Bryant-Durham Electric ––––––––––––––––––––––––––––––––––––––––––––– Schools – $10 - $25 Million Metcon, Inc. Fayetteville State University Renaissance Hall Rodgers Health Sciences Education Building Harrah’s Cherokee Casino & Hotel Edifice, Inc. — Project of the Year Finalist Wake Tech Community College – Building E Eagle Winner Allied Trailers Sales & Rentals, Alpha Insulation & Waterproofing, Associated Scaffolding Company, Baker Roofing Company, BFPE International, CEMEX, Inc., Code Electric, David Allen Company, Dixon Hughes Goodman, LLC, Grogan Edwin Associates, Inc., Liberty Mutual, National Rent-A-Fence, Overhead Door Company, Sharpe Images, SPS Corporation, SteelFab, Inc., TAF Environmental Safety & Controls, ThyssenKrupp Elevator Corporation, Universal Steel of NC, Warco Construction, Inc., Waterproofing Specialties, WCA Waste Corporation, Wells-Fargo Insurance Services, Willis of North Carolina ––––––––––––––––––––––––––––––––––––––––––––– North Carolina State University Schools – $25 - $50 Million Balfour Beatty Construction / D.H. Griffin / Daniele Company University of North Carolina – Greensboro Quad Renovation Barton Malow/ Samet/ SRS Joint School of Nanoscience and Nanoengineering Balfour Beatty Construction East Carolina University – School of Dentistry Eagle Winner Wake Tech Community College FINALIST Baker Roofing Company, Brodie Contractors, Inc., Briegan Construction Services, Inc., Code Electric, Inc., Fred Adams Paving Company, Inc., Sears Contract, Inc., Southern Piping Company, Tile Setters of Raleigh, Inc., Waterproofing Specialties ––––––––––––––––––––––––––––––––––––––––––––– Schools – Over $50 Million Bovis Lend Lease Inc./ Clancy & Theys Construction Company – A Joint Venture University of North Carolina Chapel Hill Bell Tower Development Turner Construction Company — Project of the Year Finalist UNC at Charlotte – Energy Production & Infrastructure Center Eagle Winner East Carolina University - School of Dentistry 6 – February / March 2013 — The South Carolina Construction News Acousti Engineering, Adams Electric Company, Alpha Insulation & Waterproofing Company, Century Contractors, Inc., Cook and Boardman, Inc., David Allen Company, Fire and Life Safety America, Inc., Palmetto Air & Water Balance, Penhall Company, PowerWorks Electric, Precision Walls, Safway Services, SimplexGrinnell, SPS Corporation, Tecta America Carolinas, Tradesmen International, Unitherm, Waterproofing Specialties, W.B. Moore Co. of Charlotte EAGLE AND MERIT AWARDS Associated Builders and Contractors Inc. Carolinas Chapter Industrial – $2 - $5 Million Choate Construction Company SiMT Manufacturing Incubator Center Eagle Winner Collins & Wright, Inc., Emory Electric, Inc., The Bonitz Group, Graybar Electric Company, Guaranteed Supply Co., ModSpace, Penhall Company, Inc., Precision Walls, Hanson Brick, National Gypsum Company, Palmetto Automatic Sprinkler, The Linda Construction Co., Inc., CMC Steel, Ready Mixed Concrete Company, Duncan Parnell, Inc., SimplexGrinnell, Sunbelt Rentals, Thompson Construction Group, Port City Glass and Mirror, Staff Zone, Trojan Labor, Verizon Wireless, Zurich North America ––––––––––––––––––––––––––––––––––––––––––––– Industrial – $25 - $50 Million Yeargin Potter Shackelford Construction, Inc. ABB High Voltage Cable Manufacturing Plant Eagle Winner FINALIST UNC at Charlotte Bonitz Group, Wells Fargo Insurance Services, Cook and Boardman, Inc., Duncan-Parnell Inc., Ensco Supply, Hilti, Inc., Cemex, New South Construction Supply, Nufab Rebar, Palmetto Automatic Sprinkler, Safeway Services, Superior Cranes, Thomas Concrete, ThyssenKrupp Elevator, Verizon Wireless, Wurster Engineering & Construction, Inc. ––––––––––––––––––––––––––––––––––––––––––––– Eagle Winner Industrial – Over $50 Million KBR Building Group Gulfstream Aerospace Corporation – Business-Jet Manufacturing Facility SiMT Manufacturing Incubator Center ARC/Imaging Technologies Services, ThyssenKrupp Elevator, CMC Construction Services, Heyward Baker Inc., ACE/AVANT Concrete Construction Co. Inc., Pyramid Masonry Contractors, Inc., Northern Electric, VOS Electric Inc., Precision Walls, Goodman Decorating Company, Custom Cabinets, Inc., Buckner Crane & Rigging, ValleyCrest Landscape Development, Inc., Trojan Labor, MDT Personnel, Marsh ––––––––––––––––––––––––––––––––––––––––––––– Electrical – $1 - $2 Million PowerWorks Electric Raleigh Convention Center Photovoltaic System ––––––––––––––––––––––––––––––––––––––––––––– ABB High Voltage Cable Manufacturing Plant Electrical – $2 - $5 Million Crowder Construction Company Lake Hartwell WTP Electrical Systems Improvement Starr Electric Company, Inc. — Project of the Year Finalist Cisco Systems Modernization Eagle Winner Arthur J. Gallagher, Wells Fargo Insurance Services, Graybar, Hagemeyer, HD Supply, Hilti, United Rentals, Verizon Wireless, Waste Management, Southwire, Knapheide Truck Bodies, APC/Schneider, Lutron Controls, Ensco, ModSpace, Instruct, Johnson Controls ––––––––––––––––––––––––––––––––––––––––––––– Electrical – $5 - $10 Million Starr Electric Company, Inc. — 2012 Specialty Project of the Year Wake Forest Biotechnology Place Eagle Winner Gulfstream Aerospace Corporation Arthur J. Gallagher, Wells Fargo Insurance Services, Graybar, Hagemeyer, HD Supply, Hilti, United Rentals, Verizon Wireless, Waste Management, Southwire, HardHat Workforce Solutions, Knapheide Truck Bodies, APC/Schneider, Lutron Controls, Ensco, Modspace, Unistrut, Johnson Controls ––––––––––––––––––––––––––––––––––––––––––––– Electrical – Over $10 Million Gaylor Inc. of North Carolina ZF Transmission Plant Starr Electric Company, Inc. Duke Cancer Center FINALIST Cisco Systems Modernization The South Carolina Construction News — February / March 2013 – 7 2012 EXCELLENCE IN CONSTRUCTION Adams Electric Company — Project of the Year Finalist Carolinas Medical Center – Central Energy Plant Eagle Winner Ahern Rentals, Baker Roofing Company, Century Contractors, Coatings 2000, Coble Trench Safety, Concrete Supply Co., CED, Cook and Boardman, Inc., Duncan-Parnell Inc., Eck Electric Supply, EDI, Graybar Electric Company, HardHat Workforce Solutions, HD Supply, Hilti, Inc., Klein Tools, Ligon, Mayer Electric Supply, Neff Rental, Old Castle Precast, Palmetto Air and Water Balance, Penhall Company Inc., Robert W. Chapman & Company, Rodgers, Senn Dunn Insurance, Sharpe Images, Siemens Building Technologies, Southwire, Square D, Sunbelt Rentals, TAF Environmental Safety and Controls, The Milestone Group, Tucker-Kirby Company, Unistrut Carolinas, Verizon Wireless, Williams Scotsman, Womack Electric Supply ––––––––––––––––––––––––––––––––––––––––––––– Wake Forest Biotechnology Place Interior – Under $2 Million Cely Construction Company The Growler Station FINALIST ––––––––––––––––––––––––––––––––––––––––––––– Interior – $2 - $5 Million Turner Construction Company Turner Construction Company – Charlotte Office ––––––––––––––––––––––––––––––––––––––––––––– Carolinas Medical Center – CEP Interior – $10 - $25 Million Turner Construction Company SCOR Charlotte FINALIST Eagle Winner Adams Electric, Atlantic Window Coverings, Inc., Duncan-Parnell Inc., Environmental Holdings Group, Cook and Boardman, Inc., ThyssenKrupp Elevator, Turman Commercial Painters ––––––––––––––––––––––––––––––––––––––––––––– Interior – Over $50 Million Balfour Beatty Construction Duke Energy Headquarters Interiors Eagle Winner SCOR Charlotte Absolute Fire Control, Inc., Atlantic Window Coverings, Inc., Bonitz Group, Coatings 2000, Inc., Cook and Boardman, Inc., RC Specialties, Inc., Starr Electric Company, SteelFab Inc., The Linda Construction Company, Warco Construction, Inc. ––––––––––––––––––––––––––––––––––––––––––––– Glass/Glazing – $2 - $5 Million Juba Aluminum Products NC Department of Environment and Natural Resources ––––––––––––––––––––––––––––––––––––––––––––– Glass/Glazing – $5 - $10 Million SPS Corporation — Project of the Year Finalist Duke Cancer Center Eagle Winner Duke Energy Headquarters Interiors Airgas National Welders, Associated Scaffolding, BB&T Insurance, Centria, Fastenal Company, Guaranteed Supply, H&E Equipment Services, Inc., Imaging Technologies, K.E.A. Building Services Inc., Kenseal Construction Prod Corp, Mobile Mini, Sherwin Williams, Tucker Kirby Co., United Rentals, Waterproofing Specialties ––––––––––––––––––––––––––––––––––––––––––––– Renovation/Restoration – Under $2 Million Moss & Associates, LLC Greenville Baptist Association Renovation & Tenant Improvement Hendrick Construction, LLC Project Charlie ––––––––––––––––––––––––––––––––––––––––––––– Duke Cancer Center FINALIST 8 – February / March 2013 — The South Carolina Construction News Renovation/Restoration – $5 - $10 Million Rodgers Foundation For The Carolinas – Headquarters EAGLE AND MERIT AWARDS Associated Builders and Contractors Inc. Carolinas Chapter Renovation/Restoration – $10 - $25 Million Crowder Construction Company TZ Osborne Fluidized Bed Incinerator Eagle Winner WCA Waste Corporation, Chandler Concrete Company, Inc., Cook and Boardman, Inc., Airgas National Welders, Neff Rentals, United Rentals, Inc., ECS Carolinas, Sunbelt Rentals, Adams Products, Hilti, Inc., Ensco, HD Supply, BB&T, Wells Fargo Insurance Services USA, Inc., Duncan Parnell, Verizon Wireless, Hertz Equipment Rental, Ferguson Enterprises, Safety Resource, Liberty Mutual TZ Osborne Fluidized Bed Incinerator ––––––––––––––––––––––––––––––––––––––––––––– Renovation/Restoration – Over $50 Million Choate Construction Company The Residences at Hotel John Marshall Eagle Winner Atlantic Constructors, Inc., Mid-Continental Restoration Co. Inc., Sears Contract, Inc., Engineering Specialties Co., McDonough, Bolyard, Peck, Inc., Baker Paint and Contracting Company, James River Exteriors ––––––––––––––––––––––––––––––––––––––––––––– The Residences at Hotel John Marshall Mechanical – Under $1 Million Waldrop Mechanical Services HVAC Upgrade | Manufacturing Retrofit – Bosch Rexroth Eagle Winner Dean Hall Insulation, Palmetto Air and Water Balance, Dixon Hughes Goodman, LLC, Hajoca, BB&T Insurance Services, Hoffman & Hoffman, Inc., Haynsworth Sinkler Boyd, P.A., Ogletree Deakins, Corporate Benefits, Kudzu Staffing, Verizon Wireless ––––––––––––––––––––––––––––––––––––––––––––– Mechanical – $2 - $5 Million W.B. Guimarin & Co., Inc. Greenville Hospital Systems Central Energy Plant Additions Bosch Rexroth Waldrop Mechanical Services — Project of the Year Finalist Clemson University Lee Hall – Expansion/Renovation Eagle Winner Dean Hall Insulation, Palmetto Air and Water Balance, Heat Transfer Sales of the Carolinas, Dixon Hughes Goodman, LLC, Trane Comfort Solutions, Hajoca, BB&T Insurance Services, Hoffman & Hoffman, Inc., Haynsworth Sinkler Boyd, P.A., Ogletree Deakins, Corporate Benefits, Kudzu Staffing, Verizon Wireless ––––––––––––––––––––––––––––––––––––––––––––– Mechanical – $5 - $10 Million Kirlin Carolinas, LLC James B. Hunt Jr. Library WINNER Clemson University Lee Hall Waldrop Mechanical Services Greer High School HVAC Replacement Eagle Winner Dixon Hughes Goodman, LLC, Hajoca, BB&T Insurance Services, Hoffman & Hoffman, Inc., Haynsworth Sinkler Boyd, P.A., Ogletree Deakins, Corporate Benefits, Kudzu Staffing, Inc., Verizon Wireless, Palmetto Air and Water Balance, Creative Builders, Inc. ––––––––––––––––––––––––––––––––––––––––––––– Healthcare – Under $2 Million Choate Construction Company University of North Carolina Hospital Neurosciences Admitting Unit Relocation Greer High School MV Commercial Construction LLC Dermatology and Laser Center of Charleston Eagle Winner Baker Roofing Company, CMC Construction Services, CMC Rebar, Coreslab Structures, Guaranteed Supply Company, Gerdeau, HD Supply, Hilti, New South Construction Supply, Palmetto Automatic Sprinkler Co., Penhall Company, S&ME, Square D Company, Sunbelt Rentals, Sunland Fire Protection, Inc., TPM, Tradesmen International, United Rentals, Van Smith Concrete Co., Verizon Wireless, White Cap Construction Supply Dermatology and Laser Center of Charleston The South Carolina Construction News — February / March 2013 – 9 2012 EXCELLENCE IN CONSTRUCTION Healthcare – $2 - $5 Million Monteith Construction Corporation Lower Cape Fear Hospice and LifeCare Center Eagle Winner Adams Oldcastle Products, Baker Roofing Company, BFPE International, Cook and Boardman, Inc., SimplexGrinnell, Sunbelt Rentals, TAF Environmental and Safety Controls, Inc., United Rentals, Waste Management ––––––––––––––––––––––––––––––––––––––––––––– Healthcare – $5 - $10 Million HICAPS, Inc. Salisbury VAMC – Building 42 Renovations and Addition, Phase 1 Lower Cape Fear Hospice and LifeCare Center Brasfield & Gorrie, LLC REX Healthcare of Holly Springs Eagle Winner Baker Roofing Company, Briegan, CMC, Unistrut, Davis Landscape, Precision Walls, Strickland Waterproofing, TileSetters of Raleigh, Triangle Mechanical, Warco Construction, Inc., Watson Electric ––––––––––––––––––––––––––––––––––––––––––––– Healthcare – $10 - $25 Million Brasfield & Gorrie, LLC WakeMed Medical Park REX Healthcare of Holly Springs Eagle Winner Vannoy Construction Presbyterian Hospital Huntersville Vertical Expansion & ICU Addition Pic-Tec, Sharpe Images, Duncan-Parnell, Sunbelt Rentals, United Rentals, Superior Cranes, Verizon Wireless, Waste Connections, Thomas Concrete, Gerdau Ameristeel, Southern States Rebar, Gates Construction Company, Warco Construction, Baker Roofing Company, Cook and Boardman, Inc., Charlotte Glass Contractors, Southeast Interior Systems, National Gypsum, Sears Contract, Coatings 2000, Mr. Doorman, PowerWorks Electric ––––––––––––––––––––––––––––––––––––––––––––– Healthcare – $25 - $50 Million Rodgers — 2012 GC Project of the Year Levine Cancer Institute Carolinas HealthCare System Presbyterian Hospital Huntersville Eagle Winner Alpha Insulation & Waterproofing, Baker Roofing Company, Coatings 2000, Concrete Supply Company, Cook and Boardman, Inc., Langdon & McKenzie, Inc., McKinney Drilling Company, Palmetto Air and Water Balance, Pyramid Masonry Contractors, RC Specialties, Starr Electric Company, Inc., Unistrut Carolinas, Warco Construction ––––––––––––––––––––––––––––––––––––––––––––– Healthcare – Over $50 Million KBR Building Group — Project of the Year Finalist Duke Cancer Center Levine Cancer Institute Carolinas HealthCare System Duke Cancer Center WINNER FINALIST 10 – February / March 2013 — The South Carolina Construction News Eagle Winner Associated Scaffolding, Cook and Boardman, Inc., Engineering Specialties, Hamlin Companies, Mid-Atlantic Infrastructure Systems, Precision Walls, Pyramid Masonry Contractors, Ruppert Landscaping, Southern Pan, SPS Corporation, Starr Electric, SteelFab, Subsurface Construction Company, Swisslog, Unistrut Carolinas South Carolina Construction News is distributed throughout the Carolinas construction industry from offices at 127 College Avenue, Durham, NC 27713. SCCN is circulated on a controlled circulation list to qualified readers including members of most major construction associations in the Carolinas. For information contact: Bob Kruhm at 919-544-3719 or email rkruhm@nc.rr.com. ISSN 1940-3682. EAGLE AND MERIT AWARDS Associated Builders and Contractors Inc. Carolinas Chapter Other/Specialty – Under $2 Million Cely Construction Company Berea Middle School Emergency Procurement Eagle Winner Bonitz Flooring Group, S&ME, Inc., New South Construction Supply, CEMEX, Palmetto Air & Water Balance Inc., ARC, Sunbelt Rentals, Guaranteed Supply Co. Inc., ECS Carolinas, Labor Ready ––––––––––––––––––––––––––––––––––––––––––––– Other/Specialty – $10 - $25 Million Balfour Beatty Construction / Shelco Mosaic Village Berea Middle School Emergency Procurement ––––––––––––––––––––––––––––––––––––––––––––– Eagle Winner Other/Specialty – $25 - $50 Million KBR Building Group Medicago USA – Vaccine Research Production Facility & Greenhouse Acorn Industrial, Baker Roofing Company, Bryant-Durham Electric, Buckner Crane & Rigging, Piedmont Fire Protection Systems, Piedmont Service Group, Precision Walls, SteelFab, Inc., Tile Setters of Raleigh, Inc., Waterproofing Specialties, Acton Mobile Industries ––––––––––––––––––––––––––––––––––––––––––––– Medicago USA – Vaccine Research Other/Specialty – Over $50 Million Skanska USA Building, Inc. Wake County Detention Center Clancy & Theys Construction Company Nature Research Center Eagle Winner Carolina Form & Scaffold Supply, Code Electric, David Allen Company, Engineering Specialties Co., Falcon Engineering, Morrison Engineers, Multivista SE, Precision Walls, Inc., Sears Contract, Siemens, SPS Corporation, ThyssenKrupp Elevator, Warco Construction, Inc., Watson Electrical Construction, Watco Corporation, BB&T ––––––––––––––––––––––––––––––––––––––––––––– Nature Research Center Finishes – Under $1 Million David Allen Company, Inc. NC Museum of Natural Sciences ––––––––––––––––––––––––––––––––––––––––––––– Finishes – $5 - $10 Million Precision Walls, Inc. Duke Cancer Center Eagle Winner Allied Building Products, Hilti, Inc. ––––––––––––––––––––––––––––––––––––––––––––– Duke Cancer Center Commercial – $5 - $10 Million Choate Construction Company Measurement Building at Morris Ridge Edifice, Inc. Lancaster County Water and Sewer District Eagle Winner Atlantic Window Coverings, Baker Roofing Company, Century Contracting, Dixon Hughes Goodman, LLC, Gastonia Plumbing & Heating Company, Gates Construction Company, Hoopaugh Grading Company, Liberty Mutual, Otis Elevator Company, P.C. Godfrey, Pac-Van, Inc., Providence Paint Company, RC Specialties, Sharpe Images, Strickland Waterproofing Company, TAF Environmental Safety & Controls, Wells Fargo Insurance Services, Willis of North Carolina Lancaster County Water and Sewer District The South Carolina Construction News — February / March 2013 – 11 Associated Builders and Contractors Inc. Carolinas Chapter Commercial – $10 - $25 Million A M King Construction ALDI, Inc. Corporate Office Eagle Winner Acton Mobile Industries, AMSCO Supply, Cook and Boardman, Inc., Otis Elevator Company, Safety Management Group ––––––––––––––––––––––––––––––––––––––––––––– Commercial – Over $50 Million Balfour Beatty / D.H. Griffin / Structure Building Guilford County Detention Center ALDI, Inc. Corporate Office DPR Construction United Therapeutics Phase 2 KBR Building Group Sysco Boston, LLC – New Warehouse, Office & Distribution Center Turner Construction Company Harrah’s Cherokee Casino & Hotel – Casino Renovation/Expansion Eagle Winner Harrah’s Cherokee Casino & Hotel 12 – February / March 2013 — The South Carolina Construction News ABG Caulking & Waterproofing, Aerial Innovations of Tennessee, Ahern Rentals, Alpha Insulation & Waterproofing, Baker Concrete Construction, Baker Roofing Company, Charlotte Glass Contractors, Cook and Boardman, Inc., Dixie Roofing, Everclear Enterprises, Fire & Life Safety America, Fire Stop Technologies, Goodman Decorating Company, Hayes Lunsford Electrical Contractors, Kone, Inc., LRE Royal Electric, MCC Mechanical, Mobile Mini, National Panel Systems, Precision Walls, Inc., Quality Machine & Welding, Safeway Services, Schindler Elevator Corporation, SteelFab, Sunbelt Rentals, Superior Cranes, The Miller-Clapperton Partnership, Willams Scotsman Because Bosch Rexroth wanted the conversion completed in 32 weeks, the HVAC upgrade had to be finished in 11 weeks. Making that even more complicated, O’Neal, Inc., which served as the architect, mechanical engineer and construction man- ager, had already purchased the air handling equipment — and it was not expected until the seventh or eighth week of Waldrop’s timeframe. Yet, says Bosch Rexroth’s project manager, Jerry Greene, “Waldrop came in on time and on budget. I’d be happy to work with them again.” Bosch Rexroth manufactures hydraulic equipment for companies such as John Deere and Caterpillar. This build- ing is the third one on a 100-acre campus it is developing in Greenville County; the campus represents the com- pany’s largest investment in North America. This latest building was completed in August 2012. Before the air handling equipment arrived, Waldrop fab- ricated 48 tons of duct work and installed it at heights of 40 feet – all while structural steel was fabricated and in- stalled for the mezzanine. In addition, seven water source heat pumps, 19 exhaust fans and 23 gravity intake and re- lief hoods were installed. Even with all that planning, the air handling equipment arrived a week later than expected, and one of the units was damaged in shipment, requiring major repairs. But the 11-week schedule was met – and without a single accident. CONTINUED ON PAGE 15 OSHA Most Cited Violations of 2012 1. Fall Protection – General Requirements (1926.501) Total violations: 7,250 2. Hazard Communication (1910.1200) Total violations: 4,696 3. Scaffolding (1926.451) Total violations: 3,814 4. Respiratory Protection (1910.134) Total violations: 2,371 5. Ladders (1926.1053) Total violations: 2,310 6. Machine Guarding (1910.212) Total violations: 2,097 7. Powered Industrial Trucks (1910.178) Total violations: 1,993 8. Electrical – Wiring Methods (1910.305) Total violations: 1,744 9. Lockout/Tagout (1910.147) Total violations: 1,572 10. Electrical – General Requirements (1910.303) Total violations: 1,332 Our thanks to Chad Lingerfelt, Safety Manager & Trainer, ENSCO Supply, an Industrial Distribution Group Company. 800-868-8848 www.enscosupply.net chad.lingerfelt@idg-corp.com. www.cgspllc.com The South Carolina Construction News — February / March 2013 – 13 Guest Editorial by Henry W. Brown The Latest (but not the last) on CGL Coverage for Construction Defects in South Carolina I have the pleasure of writing this editorial for the inau- gural issue of the South Carolina Construction News. Our office has been involved with its sister publication in North Carolina. We have found it to be well worth the read, and we are pleased to be a part of its commencement in South Carolina. Few readers will be surprised that my topic is related to commercial general liability (CGL) insurance coverage for construction defects, given the recent South Carolina Supreme Court decision in Harleysville Mut. Ins. Co. v. South Carolina (Opinion 27189, Nov. 21, 2012). In 2011, South Carolina enacted legislation (Act 26) requiring all CGL policies, including policies issued before the legislation took effect, to provide coverage for damages resulting from defective work on construction projects. Act 26 also pro- vided a definition of the word “occurrence” within CGL poli- cies. The passage of Act 26 followed the decision in Crossmann Communities v. Harleysville Mut. Ins. Co., No. 26909, 2011 WL 93715 (S.C. Jan. 7, 2011), more commonly referred to as Crossmann I. By the time the challenge to Act 26 was heard and decided, Crossmann II, or Crossmann Communities v. Harleysville Mut. Ins. Co., No. 26909, 2011 WL 3667598 (S.C. Aug. 22, 2011), had eliminated most of the differences. In Harleysville, the Court ruled that the retroactive effect of the legislation was unconstitutional, but held that the provisions of the legislation may apply prospectively to CGL policies issued on or after May 17, 2011. The Court’s opin- ion, in essence, was that (i) the legislature cannot retroac- tively redefine the terms of a negotiated contract, insurance or otherwise; (ii) there is a serious separation of powers issue only if the legislature concludes it wants to change the holding of a final opinion of the Court; and (iii) the lan- guage of gtCrossmann II the latest opinion of the Court and Act 26 are basically identical, so there is no harm to any pol- icy affected by it. You may fairly ask, “Why are you writing about it, then?” The answer is that Act 26 and the opinion in Harleysville continue to miss the mark in resolving this issue, because they both attempt to analyze coverage for defective work in the definition of “occurrence” instead of in the exclusions (and the exceptions to the exclusions) in the CGL policy. This is the origin of the “intellectual mess” described by Justice Kittredge in Crossmann I. The mess and the search for its resolution will remain as long as the word “occur- rence” is the focal point for determining whether the in- sured’s own defective work is covered under the standard CGL policy. To fully understand my premise requires a thorough re- view of the history of the standard ISO policies in effect since 1966 and their evolution in light of concurrent changes in the law. Such a review is too lengthy for this editorial. However, it can be summarized as follows: 14 – February / March 2013 — The South Carolina Construction News The 1966 version of the ISO policy, by use of an exclu- sion, did not cover any damages to the insured’s own work. The 1973 ISO policy provided essentially the same simple exclusion that voided coverage for damage caused both by the insured’s own defective work and the work for which the insured was responsible through subcontracts. Around 1976, the ISO created a broad form endorsement, for which the insured paid additional premium. That endorsement created two time periods—one before and one after com- pleted operations—and property damage occurring before completed operations was excluded if the damage was to work performed by or “on behalf of” the insured. The term “on behalf of” was dropped from the exclusion for com- pleted operations, thereby allowing coverage for subcon- tracted work when the damage occurs during the time frame that is defined as completed operations. It can be argued that this change was in response to the recognition of a builder’s post-sale liability and the resulting risk of the insured’s ability to obtain recourse from its subcontractors upon the discovery of defects years after completion. Ex- tending coverage for defective work during completed op- erations was accomplished by amending the exclusions, not by a new definition of “occurrence.” In 1986 the ISO dropped the idea of a base policy and the broad form, and a single policy was issued that changed the words “on behalf of” to “subcontractor.” The ISO concept, as created by the 1986 amendment and com- bination of the broad form and base policy has continued for the last 26 years, with endorsements available to delete the subcontractor exception to the exclusion. The South Carolina legislature has now, by statute, in- jected the concept of coverage for the insured’s own work into the definition of “occurrence.” However, if subsequent court opinions can focus on the exclusions as the ultimate resolution of what the policy intends to cover, then there is an opportunity for clarity and predictability. In addition, the marketplace can set the coverage at the time of the nego- tiations for purchase by use of the appropriate endorse- ments, rather than that issue being resolved by the arguments of lawyers after the damage has occurred and been discovered. Henry Brown, a Columbia-based attorney with Nexsen Pruet, practices primarily in the areas of construction litiga- tion, commercial litigation, mediation and alternate dis- pute resolution. He is a member of the South Carolina Bar and Richland County Bar Association. He can be reached at 803-771-8900 or hbrown@nexsenpruet.com. Porterfield, who served as project man- ager, was unfazed. “These kinds of projects are a strong suit for us – we have tons of experi- ence and the right mind set to take on these type of proj- ect challenges.” For example, Waldrop’s project management team had 95 years of combined construction experience. A gener- ous performance-based incentive program was introduced for tradesmen on the project. The Waldrop team also found ways to save time and money, such as by eliminat- ing parts of the large 60-inch medium-pressure ductwork and all specialized belt-driven fans. Observes O’Neal construction manager Earl Dowdy, “It was a condensed and compressed schedule, but they made it happen and got the work done without any prob- lems.” Dean Hall Insulation, Hajoca and Hoffman & Hoffman were among the other ABC members involved with the HVAC upgrade and building retrofit. “Being recognized by our peers for these projects as ‘Best of Class’ mechanical installations in all 3 mechanical categories in both Carolinas in a single year is indeed quite an accomplishment,” says Caldwell. “Everyone at our firm is extremely proud of that recognition and also of the fact that we have brought value and enhanced, quality driven facilities to our clients.” Proud to be partners with Waldrop Mechanical Services on the Greer High School and Clemson University projects. Office: (864) 542-0966 Fax: (864) 542-0969 Mobile: (864) 237-7830 D H I Dean Hall Insulation, LLC 7062 White Avenue • Spartanburg, SC 29303 The South Carolina Construction News — February / March 2013 – 15 Guest Editorial by Mike Trammell, CPA, CCIFP Well We Didn’t Fall Off the Cliff…So Now What? After hours of political debate, House Leaders voted on New Year’s night and passed a compromised measure (called the American Taxpayer Relief Act) aimed at prevent- ing a series of tax increases and spending cuts from auto- matically going into effect, temporarily easing fears that the nation would drop off the “fiscal cliff” into a recession. The Senate resoundingly passed the legislation earlier on the same day. Unfortunately, the only part of the cliff to be averted was the tax side. However, the financial markets have responded favorably; at least in the short-term. The measure only deferred the resolution to sequestra- tion; leaving it for the 113rd Congress to deal with and hopefully they will do so immediately. Contractors will now have to deal with the expiration of the existing continuing resolution, the debt ceiling debate and sequestration all in the first quarter of 2013. In addition, such unresolved is- sues as revenue raising and reducing expenses, while much ballyhooed, were once again trumped by partisan politics and a “kick the can” approach. • • • • • • What the legislation did do: • Avoids automatic sunset provisions on 2001, 2003 and 2010 Tax Acts • Bush-era tax cuts will sunset for individuals with tax- able incomes over $400,000 and families with • • taxable income over $450,000 (although these taxpayers still benefit from the reduced rates beneath the thresholds) “Permanently patches” the alternative minimum tax (AMT) Increases the amounts allowed for the expensing of capital assets under IRC Section 179 to $500,000 for 2013 AND 2012, with a $2 million investment limit (without the Act, the limit in 2012 would have been an inflation adjusted $125,000; and to $25,000 beyond 2012) Extends Bonus Depreciation rules to 2013; and selectively to 2014 Reinstates certain credits such as the research tax credit and the American Opportunity Credit, while elim- inating cuts to other credits like the child tax credit Maintains preferred tax treatment for capital gains and dividends for taxable incomes below the maximum rate threshold Increases the applicable thresholds for phase-out of certain itemized deductions Stabilizes the Estate / Gift Tax rules with a $5 million lifetime exclusion and a maximum tax rate of 40%, and indexes the exclusion amount with inflation Extends Marriage Penalty Relief What the legislation did NOT do: • Did not extend the 2012 payroll tax “holiday” which gave wage earners and self-employed individuals a 2% savings on OSDI taxed incomes up to $113,700 (new wage base for 2013) • Address sequestration; postpones cuts for two months While there are many other items contained in the legis- lation, it falls far short of the sweeping “fix” that many law- makers hoped and campaigned on. At best it is a respite for the middle class, and a prolonged source of angst for business owners, high income individuals, and “not far from retirement” aged baby-boomers. Is sweeping tax re- form on the horizon? Will Bowles-Simpson get a second look? Is a “grand bargain” to be had in a divided Washing- ton, D.C.? We anticipate these questions and other related issues to be addressed as the new year unfolds. Mike Trammell, CPA CCIFP leads the Construction Services Group for Dixon Hughes Goodman LLP and is a frequent speaker and writer to the Construction industry. Mike can be reached at mike.trammell@dhgllp.com or at 864.342.8525. Any tax advice contained in this communication [including any attachments] is not intended or written to be used, and can- not be used, for the purpose of (i) avoiding penalties imposed under the Internal Revenue Code or applicable state or local tax law or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. 16 – February / March 2013 — The South Carolina Construction News American Subcontractors Association of the Carolinas 2013 CONTRACTORS EXPO s e pr sent SPACE IS LIMITED — SIGN UP EARLY! Expo Booth—$350 (additional fees may apply) General Admission: Includes Hors d’oeuvres, Beer, Wine & Soft Drinks ASAC Members—$65 per person Non-ASAC Members—$95 per person See attached for registration and additional details. You’re invited to the American Subcontractors Association of the Carolinas 2013 CONTRACTORS EXPO. This showcase event gives you a great opportunity to network and showcase your work, and break ground for new partnerships with General Contractors throughout the Carolinas TUESDAY, FEBRUARY 19th, 2013 4:00 p.m.—7:00 p.m. The Speedway Club Charlotte Motor Speedway 5555 Concord Parkway South Concord NC 28027 AMERICAN SUBCONTRACTORS ASSOCIATION OF THE CAROLINAS 1st Annual ASAC GC Expo The Speedway Club Charlotte Motor Speedway 5555 Concord Parkway South Concord NC 28027 Tuesday, February 19, 2013………..4:00 p.m.—7:00 p.m. My company would like to participate in the ASAC GC Expo: Company Name: ______________________________________________________ Contact Person: _______________________________________________________ Email Address: ________________________________________________________ Mailing Address: _______________________________________________________ City, State, Zip: ________________________________________________________ Phone: ________________________________Fax: ___________________________ List the names and email addresses of those attending (up to 4 for booth cost: additional at- tendees are welcome at $65 per person). Name: Email: ____________________________________ ________________________________ ____________________________________ ________________________________ ____________________________________ ________________________________ ____________________________________ ________________________________ ____________________________________ ________________________________ ********************************************************************* I understand the cost to participate is $350 payable in advance by check or credit card. Electricity needed? Cost is an additional $25. _____ I have enclosed a check payable to ASAC to participate in the 1st Annual GC Expo as follows: Booth ($350) $_________ Electricity ($25) $_________ Individual Registration (s): ASAC Member ($65 pp) $_________ ASAC Non-Member ($95 pp) $_________ Total amount enclosed $_________ _____ Please charge my credit card in the amount of $______ to register for this event: Credit Card Number: _____________________________Expiration Date: __________ Name as it appears on card: ______________________________________________ Address of card holder: __________________________________________________ Card holder phone #: ____________________Email address: ____________________ Please note: Registration fees are non-refundable SPACE IS LIMITED. Please return registration form with payment ASAP TO: ASAC, 104-A North Woodland Drive, Lancaster, SC 29720 Phone: 803-285-3356...Fax: 803-285-3357...Email: asac@asacarolinas.com...Web Site: www.asacarolinas.com For additional questions, please contact Terry Preston at 919-821-7100 or email terrypreston@davidallen.com or Theresa Brewer at asactheresa@centurylink.net, Joy Fortenberry at joy@concretespecialtycontractors.com, or Angela Vera at angela.vera@tradesmeninternational.com