Issue 1 2025 2024 Project of the Year Award Winners Adolfson & Peterson Construction RK Mechanical
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CONTENTS 2025 Pub 1 Issue 1 ©2025 Associated Builders and Contractors Rocky Mountain Chapter (ABC Rocky Mountain) | The newsLINK Group LLC. All rights reserved. The Rocky Mountain Construction Advocate is published twice per year by The newsLINK Group LLC for ABC Rocky Mountain and is the official publication of this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of ABC Rocky Mountain, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The Rocky Mountain Construction Advocate is a collective work, and as such, some articles are submitted by authors who are independent of ABC Rocky Mountain. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. President & CEO’s Message 6 The Leading Voice of the Industry Chairman’s Message 9 Advocating for Our Industry 10 ABC Rocky Mountain Board of Directors 11 ABC Rocky Mountain Past Chairs 11 Merit Shop Champions Club 12 ABC Rocky Mountain Committees 13 Harnessing the Power of the Sun for Stronger Communities 14 But Upon Closer Inspection ... 16 The Challenges of Project Labor Agreements and the Case for Open Competition 19 1099 vs. Employee Independent Contractor Agreement Guidelines for Construction Subs 23 Navigating Insurance and Surety in Rocky Mountain Construction Key Insights for ABC Members 27 Addressing the Skilled Trades Workforce Crisis 2024 Project of the Year 32 Adolfson & Peterson Construction Foothills Golf Clubhouse 2024 Project of the Year 33 RK Mechanical Colorado Convention Center Expansion Award of Excellence 34 Adolfson & Peterson Construction Foothills Golf Clubhouse Award of Excellence 35 Adolfson & Peterson Construction Northridge High School Renovation Award of Excellence 36 Douglass Colony Group United States Air Force Academy Falcon Stadium Award of Excellence 37 FCI Constructors Inc. Aims Windsor — Gateway Building and Sim City Award of Excellence 38 Flintco South Denver Cardiology Heart Center Award of Excellence 39 Hensel Phelps Colorado Convention Center Expansion Award of Excellence 40 MTech Mechanical United States Air Force Academy Visitors Center Award of Excellence 41 Milender White Nest56 at Denargo Market Award of Excellence 42 RK Mechanical Colorado Convention Center Expansion Award of Excellence 43 Turner Construction Company UCHealth Eastview Medical Center Award of Merit 44 Adolfson & Peterson Construction James Madison STEAM Academy Award of Merit 44 Encore Electric Lutheran Medical Center Replacement Hospital 4
27 6 16 Award of Merit 45 Weifield Group Electrical Contracting CSU Lory Center Revitalization Phase 3 Award of Merit 45 Weifield Group Electrical Contracting Empower Field at Mile High — Broncos Suites Renovation and Corridor Refresh Honorable Mention 46 Douglass Colony Group Molson Coors G-150 Facility Honorable Mention 46 Douglass Colony Group One River North Honorable Mention 47 Encore Electric Delta Dental/Pikes Peak Community College Dental SIM Lab Honorable Mention 47 Encore Electric United Flight Training Center Honorable Mention 48 Weifield Group Electrical Contracting Colorado Convention Center Expansion 50 2024 ABC Rocky Mountain Safety Awards 52 ABC’s Unparalleled Advancement of Merit-Shop Construction President/CEO Jack Tate jtate@abcrmc.org Operations Manager Kimberly Hendreschke khendreschke@abcrm.org Events and Engagement Manager Jennifer Hight jhight@abcrm.org Education Program Manager Lori Bond lbond@abcrm.org Rocky Mountain Staff ABC Get Connected ABCRMC abcrmc abcrmc Associated Builders and Contractors Rocky Mountain ABC Rocky Mountain LOGIC Committee abcrmc CONSTRUCTIOn ADVOCATE 5
The Leading Voice of the Industry As the new president & CEO of the Associated Builders and Contractors (ABC) — Rocky Mountain Chapter, my vision is to position our chapter as the leading voice of the construction industry in our Rocky Mountain region. This aspiration is deeply rooted in the principles and philosophy of ABC, which has, from its founding, championed the values of free enterprise, open competition and workforce excellence. I believe this vision is essential for the growth and prosperity of our industry and community. The Merit-Shop Philosophy Is 100% Industry Inclusive At the core of ABC’s identity — and central to my leadership philosophy — is the merit-shop philosophy. This inclusive principle asserts that construction contracts should be awarded based on merit: on qualifications, performance and the value brought to each project, irrespective of labor affiliations. This philosophy promotes fairness, drives innovation and ensures excellence across the industry. By creating a level playing field, it empowers businesses of all sizes, from small local contractors to President & CEO’s Message BY JACK TATE, PRESIDENT & CEO ABC ROCKY MOUNTAIN Then-Senator Jack Tate tries on a cowboy hat with Gov. Hickenlooper. 6
By leveraging my experience and passion, I aim to make our advocacy efforts both effective and enduring in the years ahead. larger enterprises, to thrive based on their capabilities and contributions, not political influence. For me, this philosophy isn’t just about competition; it’s about fostering a culture of accountability and quality. When businesses are rewarded for their skills and dedication, the entire industry benefits. This approach is what sets ABC apart and makes it the ideal organization to represent all the diverse stakeholders in Rocky Mountain construction. Advocating for the Industry One of my most significant responsibilities as CEO is advocacy — ensuring that the voices of our members and the broader industry are heard at every level of government. Advocacy is more than a duty; it’s a strategic tool for shaping the policies that govern our work. ABC actively engages with local, state and national lawmakers to promote legislation that supports open competition and free enterprise while opposing unfair practices and policies that stifle innovation and growth. This commitment to advocacy is deeply personal to me. Before stepping into this role, I spent 20 years as a construction professional, gaining firsthand experience in the industry’s challenges and rewards. In addition to my industry career, I served as an elected representative in the General Assembly, both as a member of the House and the Senate, where I fought tirelessly for these same principles. That dual experience — both on the job site and in the legislature — has given me a unique perspective on the hard work, dedication and resilience required at every level of our industry. I understand the struggles of business owners, workers and contractors alike because I’ve lived them. I know the complexities of legislative advocacy because I’ve been in the rooms where decisions are made. Advocating for the construction industry is not a one-time effort; it’s an ongoing commitment for election after election and session after session. It requires persistence, relationship-building and an intimate understanding of how policies impact businesses and workers on the ground. I bring this understanding to every conversation, ensuring that our chapter’s voice is not only heard but respected. By leveraging my experience and passion, I aim to make our advocacy efforts both effective and enduring in the years ahead. Building a Skilled Workforce Workforce development is one of the most critical challenges facing the construction industry today. As CEO, I see it as a top priority for ABC Rocky Mountain to address the growing demand for skilled labor. ABC has always been a leader in this area, offering apprenticeship programs, continuing education and industry-recognized training initiatives. These programs not only help individuals build rewarding careers but also ensure our industry has the skilled workforce it needs to succeed. I am especially excited about our plans to invigorate pathways for young people to discover careers in construction. By promoting our programs to schools, partnering with local businesses and showcasing the opportunities available, we can inspire a new generation of workers to join the industry. Workforce development is more than a practical need — it’s an investment in the future of construction. By equipping our workers with the tools and training they need, we’re not just improving projects; we’re elevating lives. Prioritizing Safety Safety and ethics are cornerstones of the construction industry, and I am deeply committed to ensuring that our chapter leads in these areas. Through initiatives like ABC’s Safety Training Evaluation Process (STEP), we provide our members with best practices and resources to build a culture of safety on every job site. Every worker deserves to go home safely at the end of the day. By prioritizing safety, CONSTRUCTIOn ADVOCATE 7
we not only protect workers but also enhance productivity and quality. In addition, the STEP program empowers ABC to educate policymakers that our members exceed in this area — and rebuff the false narratives of the opponents of the merit shop. Engaging with the Community Our chapter is not just a voice for construction — it’s a part of the community. We understand that our work impacts people’s lives every day, and we are committed to building not just structures but relationships. By engaging with local leaders, supporting civic initiatives and participating in community development projects, we reinforce the connection between our industry and the people it serves. I see this engagement as a two-way street. It allows us to listen and understand the needs of our community while also demonstrating the value and contributions of our industry. When our chapter supports local causes, advocates for economic development or participates in charitable work, we’re doing more than building goodwill — we’re strengthening the foundation of trust and collaboration that helps communities and industries thrive together. Finally, merit-shop construction brings the best value to the community overall. Leading with Vision and Purpose As CEO, I approach my role with a clear vision and a deep sense of purpose. My job is to unite members, stakeholders and the community under a shared goal: to make ABC the leading voice for construction in the Rocky Mountain region. This requires strategic leadership, collaboration and an unwavering commitment to ABC’s mission. Whether I’m advocating for policies, promoting workforce programs or engaging with the community, my focus is always on advancing our industry and ensuring its long-term success. The Voice of the Industry In closing, I am confident that ABC’s rightful place is to be the leading voice of our construction industry. The 100% industry inclusivity of the merit-shop philosophy, our dedication to workforce development, our commitment to safety and ethics, and our support of the communities in which we work make ABC the ideal organization to lead this charge. Together, with the support of our members and partners, we will achieve this vision and continue to elevate the construction industry for generations to come. THE POWER OF ONE Our seven businesses work together to offer construction, manufacturing, fabrication and building service solutions. Our multi-trade experience allows seamless collaboration in your projects and execution. We act as a partner with companies to create, execute and maintain customized solutions from start to finish to bring your vision to reality. CONTACT US TODAY RKINDUSTRIES.COM Visit our website 303.355.9696 Or call for more info Learn more about integration and multi-trade solutions. 8
Advocating for Our Industry Chairman’s Message I have been asked to serve as the 2025 Board Chair of the Associated Builders and Contractors Rocky Mountain Chapter (ABC RM). I am honored to serve in this capacity and to work alongside a dedicated team of fellow ABC board members and staff who strive to serve our community, membership and industry. With 27 years of experience working within the Rocky Mountain region, I witnessed the opportunities ABC could provide its members to help develop people, win work, and deliver work safely, ethically and profitably for the betterment of the communities in which we work. For these reasons, and many others for that matter, I was ecstatic about serving a second three-year term on the board of directors for ABC RM. As an advocate for the construction industry, I see this as a leadership platform to get more involved and to assist in BY JASON WALLACK HENSEL PHELPS CONSTRUCTION CO. 2025 BOARD CHAIR ABC ROCKY MOUNTAIN the strategic planning process, to serve and to improve the construction industry. We have spent the past year rebuilding a foundation for the ABC Rocky Mountain Chapter. We have been exposed to new people, ideas and other industry partners. We have grown in size, we have trained our people, and we have testified at the state Capitol on behalf of free enterprise and fair competition in construction. In 2025 we will continue to build upon these strategic foundational elements. ABC RM provides many opportunities for member involvement. Safety and professional training, networking and YP events, and numerous committee participation opportunities are all available to employees of our member companies. If it is not you who gets involved, then use your membership as an employee development and retention tool. Send them to trainings or an event. Better yet, let them volunteer and develop their leadership skills by serving on a committee. Our staff at ABC can provide you with more information on what committee involvement looks like and the expectations of the role. If you are not developing your people, someone else will! I want to thank all of our members for your continued and future involvement. Let’s make 2025 a year where the Rocky Mountain Chapter of ABC creates opportunities for all its members! If you are not developing your people, someone else will! CONSTRUCTIOn ADVOCATE 9
ABC Rocky Mountain Board of Directors Jason Wallack Board Chair Hensel Phelps Morgan Lysohir Past Chair Milender White Construction Mike Menke Chair-Elect FCI Constructors Inc. Jason Maxwell Vice Chairman WCG Construction Tyler Mitchell Secretary Encore Electric Inc. Dan Brubaker Treasurer Wipfli LLP John M. Burkhart Director LEI Companies Inc. Rob Cheney Director Facility Solutions Group Kyle Henry Director Turner Construction Co. Bryan Hildebrand Director United Rentals Dawn McCombs Director Avison Young Jay Moan Director Greiner Electric Jessica Richards Director Travelers TM crsdenver.com | 9780 S. Meridian Boulevard, Suite 400, Englewood, CO 80112 David Hite | Email: dhite@crsdenver.com | (303) 996-7830 Helping you make the most of every opportunity. CRS Insurance Brokerage is a full-service agency with more than 30 years of experience serving the Colorado Construction Industry. Trust CRS Insurance Brokerage for all your insurance needs and ensure your construction projects are protected. Contact us today to learn more! Our suite of services include: Commercial Insurance Expert Claims Management Proactive Loss Control Support Reliable Surety Bonds And more! Learn More 10
ABC Rocky Mountain Past Chairs 1975: Wendell Towe 1976: Phil Haddock 1977: Gary Furlong 1978: Harold Kunz 1979: Jack Weaver 1980: Richard Butler 1981: John Bernhardt 1982: John Tutty 1983: Dennis Sinnet Jr. 1984: Bob Nemmers 1985: Carolyn Metzler 1986: John C. Maus 1987: David Jackson 1988: Al Hamilton 1989/1995: Rex D. Wiederspahn 1990: Timothy D. Pleune 1991: Bill Hinton 1992: John Hawkins 1993: James R. Sharp 1994: Gary Brown 1995: Gary Marion 1996: Steve Meyers 1997: Luke Gentrup 1998: René Gill 1999: Carl W. Smith 2000: Bob Piper 2001: J.B. Wise 2002: Dave Greiner 2003: Paul Spreche 2004: Kurt Kaltenbacher 2005: Monte Robinett 2006: Dennis Walker 2007: Jeff Shigeno 2008: Diane Miller 2009: Randy Sewald 2010: Paul O’Donnell 2011: Dale Heter 2012: Byron White 2013: Jeff Erker 2014: Brandon Berumen 2015: Allan Bliesmer 2016: Darren Hinton 2017: Jason Maxwell 2018: Robert Marceau 2019: David Brooke 2020: Shane Fobes 2021-2022: Kelly Eustace 2023: Dave Pavelka 2024: Morgan Lysohir Thank you for your dedication to the industry. Merit Shop Champions Club Diamond Gold Silver CONSTRUCTIOn ADVOCATE 11
ABC Rocky Mountain Committees Safety Committee Chair: Katie Nichols, Kenny Electric Government Affairs Committee Chair: Randy Sewald, Encore Electric Inc. Brandon Berumen, LEI Companies Inc. Workforce Development Committee Chair: Scott Nelson, Encore Electric Inc. Membership Committee Chair: Jerry Kemper, Kuck Mechanical Contractors LLC Young Professionals Committee Chair: Bridger Minnick, Turner Construction Co. Ryan Almaleh, Avison Young Events Committee Chair: Dawn McCombs, Avison Young Education Committee Co-Chairs: Jason Heustis, Adolfson & Peterson Kyle Henry, Turner Construction Co. LOGIC Committee (Ladies Operating for Growth In Construction) Chair: Rachel Smith, ATCO Structures & Logistics Wish You Were Here 12
Harnessing the Power of the Sun for Stronger Communities In today’s evolving energy landscape, commercial solar power is more than just an environmentally responsible choice — it’s an economic and social catalyst. Businesses and property owners who invest in solar energy contribute to a greener planet, enjoy long-term financial benefits, and play a crucial role in strengthening their local communities. While the environmental and economic advantages of solar are well-documented, the positive community impacts often go overlooked. Environmental and Economic Gains Solar energy reduces reliance on fossil fuels, decreases carbon emissions and mitigates climate change. By harnessing renewable energy, businesses shrink their carbon footprints, setting an example for sustainability and corporate responsibility. Economic incentives such as tax credits, net metering and decreased operational costs make solar a sound financial investment. Over time, businesses can significantly reduce electricity expenses, reallocate resources to growth initiatives and insulate themselves from volatile energy prices. Strengthening Communities Through Solar Beyond environmental and economic gains, the most transformative effects of commercial solar installations are at the community level. By choosing solar, businesses become key players in fostering job growth, energy security and economic equity. 1. Job Creation and Workforce Development: The solar industry is one of the fastest-growing employment sectors, creating diverse job opportunities across various skill levels. From manufacturing and installation to maintenance and engineering, commercial solar projects generate high-quality, well-paying jobs. 2. Energy Independence and Grid Resilience: Local businesses adopting solar power help stabilize the regional energy grid by reducing demand during peak hours and supplying clean energy back to the community. Solar microgrids and battery storage systems enhance energy security, minimizing the risk of blackouts and price surges. By increasing energy independence, commercial solar investments ensure a more stable and resilient power supply for homes, schools, hospitals and public services. 3. Economic Revitalization and Cost Savings: When businesses save on energy costs through solar adoption, those savings can be reinvested into the local economy via hiring additional staff, expanding operations or supporting local initiatives. 4. Social Equity and Environmental Justice: Access to affordable and sustainable energy is an essential part of building more equitable communities. Solar projects in commercial and industrial spaces can support energy-sharing programs, providing renewable power to underserved neighborhoods. 5. Educational and Community Engagement: Commercial solar installations often become hubs for education and advocacy. Schools, universities and community centers can partner with solar-powered businesses to promote STEM education and climate awareness. Public engagement campaigns, guided tours and hands-on learning opportunities create a deeper understanding of renewable energy’s role in shaping a sustainable future. A Collective Step Toward Sustainability As businesses continue to embrace commercial solar power, they contribute to far more than just bottom-line savings. They become part of a movement that supports economic resilience, energy security and social progress. By harnessing the sun’s potential, we are not only reducing our environmental impact but also creating stronger, more connected communities ready to thrive in a renewable-powered future. For more information about Douglass Colony Group’s expertise in the solar sector, please visit www.douglasscolony.com or call (303) 288-2635. BY KATE FAULKNER, MANAGER, SOLAR DIVISION & BUSINESS DEVELOPMENT DOUGLASS COLONY GROUP CONSTRUCTIOn ADVOCATE 13
Inspections are a necessary part of any construction project. They are necessary to identify non-compliant work that requires correction. But Upon Closer Inspection ... A general contractor’s work is often subject to inspection by a third party, such as an independent professional (generally hired by the owner) or a representative of the authority having jurisdiction over the construction project. Invariably, a failed inspection is considered proof of non-conforming work and requires corrective or additional work to achieve a passing result on re-inspection. Indeed, the General Conditions of the standard AIA contract provide if a third-party inspection “reveal[s] failure of the portions of the Work to comply with requirements established by the Contract BY BRET R. GUNNELL, ESQ., PARTNER BBG CONSTRUCTION LAW 14
Documents, all costs made necessary by such failure ... shall be at the Contractor’s expense.”1 There is little a contractor can do to change this outcome (other than involve the responsible subcontractor to address the problem) because it is difficult to disprove or invalidate a failed inspection. Unfortunately, the reverse is not true. Contractors typically cannot rely on a passing inspection to prove compliance (and thus avoid liability) when deficiencies are later discovered in the contractor’s work. The same General Conditions caution “[t]he Contractor shall not be relieved of its obligations to perform the Work in accordance with the Contract Documents [by] ... inspections or approvals required or performed by persons or entities other than the Contractor.”2 Most construction contracts adopt this same approach, imposing a non-delegable duty on the contractor to ensure its work complies with the plans and specifications, regardless of third-party inspections. Still, there is a way to tip the balance. A “passing” inspection can be valuable (though not conclusive) evidence of compliance if the quality and conformance of the contractor’s work are later called into question. Consider the following recommendations (and reminders) when dealing with third-party inspections: • Perform work with diligence, be laser-focused on quality, and implement a comprehensive quality assurance program. • Educate your team about inspection processes and compliance requirements; conduct internal inspections to complement third-party inspections. • Ensure inspectors are qualified and truly independent. Selecting third-party inspectors with appropriate expertise, certifications and experience lends credibility to the results. • Clearly define the scope of the inspection in writing to ensure it aligns with the project plans, specifications and contract requirements. Don’t leave it to the inspector to determine the standard against which the work will be measured and don’t simply assume the inspector knows the precise requirements of the Contract Documents. • Communicate clearly to the owner and architect about the nature and timing of the inspections, invite their active participation, and document whether and why reliance on required inspections is reasonable under the circumstances. • Attend inspections or delegate knowledgeable representatives to oversee the process. Actively engage with the inspector in real time to clarify any findings or discrepancies. • Promptly address any deficiencies identified during inspections and document corrective actions taken. • Require detailed and signed inspection reports that include findings, test results and photographic evidence of compliance. Consider supplementing those reports with additional photos, videos or drone footage. • Request written acceptance or acknowledgment from the owner or design professional of the inspection findings, if applicable. • Maintain detailed records of inspections, reports, correspondence and corrective actions taken. • Have legal counsel review inspection-related provisions in the contract and assess if and how they relate to liability for non-conformance. If possible, negotiate and include language explicitly specifying the role of third-party inspections, their scope and the evidentiary value of their findings. Inspections are a necessary part of any construction project. They are necessary to identify non-compliant work that requires correction. By proactively managing the inspection process, however, contractors can also rely upon third-party inspections as valuable evidence that the work was performed in conformance with the plans, specifications and other contract requirements. 1. AIA-A201 General Conditions of the Contract (2017 ed.) § 13.3.4 2. Id. § 3.1.3 CONSTRUCTIOn ADVOCATE 15
The Challenges of Project Labor Agreements and the Case for Open Competition BY JON KINNING, COO AND EXECUTIVE VICE PRESIDENT RK INDUSTRIES Innovation, efficiency and cost-effectiveness are crucial in the construction industry, yet government-mandated Project Labor Agreements (PLAs) often act as barriers rather than bridges, leading to higher costs and limited opportunities. PLAs exclude nearly 9 out of 10 workers in the U.S. construction industry from building and rebuilding America and their own communities because they do not belong to a union. Merit-shop contractors, who prioritize equal opportunities regardless of union membership, excel in fostering innovation, inclusivity and fair competition, offering a compelling alternative. Organizations like ABC are pivotal in promoting merit-shop principles, advocating for fair and open competition, and championing policies that empower all contractors to contribute to the industry. As we explore the drawbacks of PLAs and refute their perceived benefits, let’s advocate for open competition to strengthen the construction industry and our workforce to benefit the communities in which we work. What Are PLAs? PLAs are pre-hire agreements that establish the terms and conditions of employment for specific construction projects. Typically mandated by government entities, these agreements often require contractors to adhere to union rules, hire workers from union halls and contribute to union benefit plans — even if they already provide benefits to their employees. While proponents argue that PLAs ensure project stability and efficiency, the reality is far more complex. The Hidden Costs of PLAs One of the most significant drawbacks of PLAs is their impact on project costs. Studies have shown that PLAs can increase project costs by 12% to 20%,1 primarily due to reduced competition and mandated wage rates that exceed market norms. When contractors are forced to comply with union-specific requirements, non-union contractors often face barriers to entry, resulting in fewer bidders and inflated costs. Ultimately, these costs are passed on to taxpayers and project owners, straining budgets and limiting the scope of infrastructure development. A 2021 study in California found that PLA mandates increased the cost of affordable housing construction by 14.5% and resulted in the construction of 800 fewer units than could have been produced with the same amount of funding without PLA mandates.1 Reduced Competition Hurts Everyone PLAs disproportionately affect merit-shop contractors, who make up more than 89%2 of the construction workforce in the United States. By excluding these contractors or forcing them to operate under unfamiliar and restrictive rules, PLAs stifle innovation and reduce the pool of skilled labor available for projects. This exclusionary practice puts merit-shop contractors at a disadvantage and undermines the principles of a free market, where competition drives quality and value. We need all of America’s seven million-plus strong construction workforce3 to rebuild America — not just the 10.7% of the construction industry who belong to a union. The Impact on Communities PLAs also have a profound impact on local communities. By prioritizing union labor, these agreements often exclude local, non-union workers from participating in projects within their own communities, despite merit-shop contractors paying taxes that fund those projects as well. This exclusion undermines economic development and 16
By embracing the merit-shop philosophy and promoting open competition, we can create a more inclusive, dynamic and cost-effective industry. denies local workers the opportunity to contribute to (and benefit from) critical infrastructure projects. In contrast, merit-shop enterprises prioritize hiring based on skill and qualifications, ensuring that the best talent — regardless of union affiliation — is utilized. The Case for Open Competition Open competition — the hallmark of the merit-shop philosophy — offers a compelling alternative to PLAs. By allowing all qualified contractors to bid on projects, open competition fosters innovation, drives down costs and ensures that taxpayers receive the best value for their investment. Merit-shop enterprises prioritize performance, safety and quality, creating an environment where excellence thrives. At its core, the merit-shop model champions fairness and inclusivity. By removing barriers to entry, it empowers contractors to compete based on their skills and capabilities rather than their affiliations. This approach not only benefits contractors but also strengthens the industry as a whole, ensuring that projects are completed efficiently and to the highest standards. CONSTRUCTIOn ADVOCATE 17
Legislative Solutions Legislative action is essential for promoting open competition and mitigating the negative impacts of PLAs. At the federal level, the Fair and Open Competition Act seeks to prohibit government-mandated PLAs on federally funded projects. State and local governments can also play a pivotal role in promoting open competition. By enacting policies that prohibit or limit the use of PLAs, these entities can ensure that taxpayer dollars are spent wisely and that all qualified contractors have the opportunity to contribute to public projects. Advocacy and education are key to driving these changes and building a more equitable industry. The Road Forward: Embracing Merit-Based Principles The construction industry thrives on innovation, efficiency and competition — principles that are often undermined by Project Labor Agreements. By embracing the merit-shop philosophy and promoting open competition, we can create a more inclusive, dynamic and cost-effective industry. The benefits extend beyond the industry to taxpayers, communities and the broader economy, ensuring that infrastructure development serves as a catalyst for progress rather than a source of division. Now more than ever, it is essential to advocate for policies that prioritize fairness, value and opportunity. By rejecting PLAs and championing open competition, we can build a stronger future for the construction industry and the communities it serves. 1. https://www.rand.org/pubs/research_reports/RRA1362-1.html 2. https://www.statista.com/statistics/1376212/union-membership-rate- construction-industry-us/ 3. https://www.bls.gov/news.release/jolts.nr0.htm LEADING THE CHANGE WITH A COMMITMENT TO SAFETY, QUALITY, AND EXECUTION FOR FOR ALL YOUR INDUSTRIAL INFRASTRUCTURE PROJECT NEEDS. SALES@LOENBRO.COM 844.LOENBRO DATA CENTER ELECTRICAL & INDUSTRIAL ELECTRICAL MECHANICAL & STRUCTURAL INSPECTION FABRICATION UNDERGROUND MAINTENANCE & INSTALLATION SOFT CRAFT YOUR MISSING PIECE 18
1099 vs. Employee Independent Contractor Agreement Guidelines for Construction Subs BY JOHN ZAKHEM, PARTNER CAMPBELL KILLIN BRITTAN & RAY LLC Like any other industry, builders regularly classify contract labor as either employees or independent contractors (1099 workers). Generally, if the contract labor is going to work under your company’s direct control/management, there’s no question that the worker should be classified as an employee, and thereby entitled to minimum wage, workers’ comp insurance, unemployment insurance, tax withholdings, etc. However, it is often economically beneficial for the business relationship to seek labor from an independent contractor — someone who does not need to be directly supervised, who can autonomously tackle discreet construction activities on your behalf — and, therefore, your company has no legal risk or financial responsibility beyond the contract value of the labor. You may be thinking, “We always hire a company. We never hire individuals, so this doesn’t matter for us.” You could be wrong. Unless you can guarantee that the “company” you are hiring is in good legal standing and following all these rules, you may end up on the wrong side of litigation if one of their workers on your job is injured, terminated or brings a wage claim. Understanding Colorado and IRS independent contractor guidelines can save you some headaches and money, particularly in the recently proactive regulatory environment at Colorado’s Department of Labor, which has been targeting the construction industry for wage claim investigations — misclassification comes with huge penalties. When it comes to independent contractor vs. employee, what are the differences? There are two legal frameworks that must be followed, at the federal and state level. The IRS’s Three-Factor Test Behavioral Control Does your business have a right to direct and control how the work is done, through instructions, training or other means? • Are there regular reports to a manager regarding the contractor’s work? • Is the contractor’s performance regularly evaluated? • Is the contractor provided with occasional training related to the job? • Is the contractor free to work anytime and anywhere convenient? • Is the contractor tied to the company’s rules and regulations? • Does the contractor have a fixed work schedule? CONSTRUCTIOn ADVOCATE 19
Financial Control Does your business have a right to direct or control the financial and business aspects of the contractor’s job? • How is the contractor paid and how regularly — monthly, weekly or fortnightly? • Is the contractor eligible for reimbursements or unreimbursed business expenses? • Does the contractor have access to any of the company’s resources or just resources supplied by the contractor? • Does the contractor pay for their own health insurance, liability insurance and other insurance? • Does the contractor have other customers? • Can the contractor realize a profit or incur a loss? Relationship of the Parties • Does the contractor receive employee-type benefits like: fringe benefits, insurance, a pension plan, paid sick days and vacation leave? • Does the contractor offer these specific services or are they catch-all labor for your company? • Is there a written or oral agreement describing the intended relationship? • Is there an invoice for every completed job or project? • How permanent is the relationship? • Are the contractor’s services a key aspect of the company’s regular business? For more information about the IRS’s Three-Factor Test, read Publication 15-A by scanning the QR code. https://www.irs.gov/pub/irs-pdf/p15a.pdf Colorado Test Under Colorado Law, an individual is presumed to be in covered employment unless and until it is shown that the individual is free from control and direction in the performance of services, both under contract and in fact, and that the individual is customarily engaged in an independent trade related to the work performed. The presumption shifts to independent contractor status if there is an Independent Contractor Agreement that includes provisions to demonstrate that the contractor is not an employee. However, the contract must include statutory disclosures and cover the general aspects described in the IRS test above. For more information about the Colorado Test for independent contractors, scan the QR code. https://cdle.colorado.gov/independent-contractors Best Practices A good independent contractor agreement will: • Define the contractor’s tasks, compensation and the time frame for completion. • Provide the framework for maintaining the contractor’s independent business in accordance with Colorado and IRS provisions. See C.R.S. §§ 8-4-202(2)(b)(II) and 8-70-115(1)(c). • Include a disclosure (in bold/large font) that the contractor is responsible for paying federal and state income taxes on their earnings and will not receive any benefits from the company, such as worker’s comp or unemployment insurance. • Be notarized. • Address issues of insurance, lien waivers, confidentiality, non-solicitation, adherence to GC or owner safety protocols and contract drawings, dispute resolution, reimbursements/expenses, drug and site security policies, and intellectual property. The use of a well-drafted independent contractor agreement is appropriate for many subcontractor relationships as well as 1099 contract labor. Once your company has a solid agreement ready for use, maintaining and justifying the independent contractor relationship becomes easier for your administrative and site staff to manage with confidence. John Zakhem is a partner in the Cherry Creek law firm of Campbell Killin Brittan & Ray LLC and chairs its construction law and government affairs practice groups. As your ABC Rocky Mountain legal counsel, we welcome your questions about this or any other legal matter at any time. Contact John at (303) 394-7204 or jzakhem@ckbrlaw.com. 20
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Navigating Insurance and Surety in Rocky Mountain Construction Key Insights for ABC Members BY JESSICA RICHARDS, AFSB, ACCOUNT EXECUTIVE OFFICER, TRAVELERS The construction industry in the Rocky Mountain Region is as dynamic as the terrain itself, with Colorado and Wyoming serving as key hubs for infrastructure development and growth. From the bustling urban centers of Denver and Colorado Springs to the expansive energy fields in Wyoming, construction companies face unique opportunities and risks. For ABC members, understanding how insurance and surety intersect with construction is essential for safeguarding projects, ensuring compliance and driving business success. Challenges in the Current Insurance Market in Colorado and Wyoming The insurance market in Colorado and Wyoming has faced growing challenges, particularly for construction companies. These include: • Increased Premiums: Rising insurance premiums across the U.S. — driven by inflation, natural disasters and increased claims — are affecting our region as well. For contractors, this means higher upfront costs, which should be factored into project budgets and bids. • Weather Risks: Both states are vulnerable to extreme weather events — hailstorms, snow and flooding — which require insurers to adjust premiums and policy terms to account for these risks. • State-Specific Regulatory Differences: Colorado and Wyoming have distinct laws regarding construction insurance, particularly workers’ compensation. Contractors working across state lines must navigate these differences, requiring a nuanced understanding of local laws. Insights into the Contract Surety Market Beyond traditional insurance, surety bonds play a vital role, particularly for those involved in public or large-scale private projects. Surety bonds provide assurance that contractors will fulfill their obligations, safeguarding project owners — and, in the case of public projects, taxpayers — from the risks of non-performance. In our region, the surety market has experienced several notable trends: • Steady Demand for Bonds: With growing infrastructure, energy and commercial developments, the demand for surety bonds remains strong. In Colorado, expanding urban centers like Denver and Colorado Springs drive the need for performance and payment bonds, while Wyoming’s energy sector fuels demand for surety in oil and gas projects. • Tightening of Underwriting: Due to an increase in defaults and claims, surety providers are becoming more selective. Contractors with strong financials, solid project backlogs and proven track records are more likely to secure favorable bond terms. • Market Opportunity for ABC Members: Contractors with a history of successful projects and sound financial practices are well-positioned to benefit from favorable surety terms. ABC’s educational programs and networking opportunities can help CONSTRUCTION ADVOCATE 23
members build relationships with surety agents and underwriters and navigate the bonding process effectively. Leveraging ABC Resources for Risk Management ABC offers invaluable resources to help contractors manage risk and navigate the complex insurance landscape: • STEP Safety Management System: ABC’s STEP program helps reduce incidents and improve safety standards. In a region with varied terrain and extreme weather, safety is crucial. • Educational Resources: ABC can provide workshops and seminars to keep members informed about changes in insurance products and regulations. Understanding how the laws in Colorado and Wyoming impact construction can help ensure better compliance and coverage. • Advocacy and Policy Support: ABC’s advocacy efforts help members stay ahead of regulatory changes, such as shifts in workers’ compensation laws, which can directly impact premiums and coverage. Opportunities for ABC Members to Improve Insurance and Surety Outcomes To navigate the evolving landscape of insurance and surety, ABC members can take several proactive steps: 1. Invest in Safety and Training: Implement comprehensive safety programs like STEP to reduce accidents. 2. **Work with Specialized Brokers: Surety and insurance brokers specializing in construction understand our unique regional challenges and can help contractors find the right coverage. They also assist in navigating state-specific insurance requirements. 3. Maintain Strong Financial Health: Surety providers place significant emphasis on a contractor’s financial stability when underwriting bonds. Ensure your financial records are well-maintained and demonstrate profitability, adequate working capital and equity. Collaborate with a CPA experienced in construction to present accurate and transparent financial statements that inspire confidence in underwriters. 4. Focus on Project Management: Effective project management is a key factor in mitigating risk and improving surety outcomes. Use project management software to track progress, control costs and address potential issues early. Demonstrating strong internal controls and project oversight can reassure surety providers of your ability to manage complex jobs. 5. Adopt Technology: Technology can reduce risks and improve insurance outcomes. From GPS tracking to real-time weather monitoring, technology helps mitigate risks and enables better risk assessments for insurers. 6. Understand Local Regulations: Stay informed about state-specific insurance requirements. Conclusion In the Rocky Mountain Region, construction is a key economic driver, but it comes with its fair share of risks. For ABC members, insurance isn’t just a necessity — it’s a strategic tool for protecting against the unpredictable challenges of the industry. By taking a proactive approach to safety, staying informed about state regulations, and leveraging ABC’s resources, contractors can mitigate risk, reduce costs and thrive in an increasingly complex market. **Note: While understanding the insurance/surety landscape is essential for managing risk, it’s important to note that most commercial insurance policies and surety bonds are secured through brokers or agents. ABC members can leverage a trusted network of brokers who specialize in construction to navigate this complex landscape. Jessica Richards, AFSB, is an account executive officer at Travelers in Contract Surety and is about to start her 10th year with the company. She is also a director on the board of ABC Rocky Mountain and has been involved with ABC since 2016, serving in various leadership roles and advocating for the construction industry. Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the official position or views of Travelers or its affiliates. This article is for informational purposes only and does not constitute legal, financial, or professional advice. It provides an overview of general market trends in the construction insurance and surety industries, with a specific focus on the Rocky Mountain Region. Readers are strongly encouraged to consult with their own legal, financial, or insurance/surety professionals for advice tailored to their unique circumstances. The author and Travelers disclaim all liability for decisions made based on the information provided herein. Travelers makes no representations or warranties regarding the accuracy, completeness, or reliability of the information contained in this article. Any reliance you place on such information is strictly at your own risk. In no event will Travelers be liable for any loss or damage, including, without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from the use of this article or the information contained within it. 24
Our Passion For Your Success Goes Far Beyond Equipment We work together with our customers, communities and employees to find solutions based on a shared commitment to service and safety. To us, this is a simple but powerful notion we call “Work United.” It’s a shared mindset — one of partnership — that helps us face any challenge together. » Committed to Safety Safety is our No. 1 priority. » One-stop for Rental and Equipment Solutions 4,300+ classes of equipment across 1,278 locations. » Industry and Application Expertise 20,000+ experts. » Reliable Service You Can Trust 24/7 rentals, service and support. » Digital Tools to Manage Productivity Get full visibility over your rented and owned fleet. United Rentals 11250 E. 40th Ave. Denver, CO 80239 (303) 576-3500 unitedrentals.com CONSTRUCTIOn ADVOCATE 25
MTech Mechanical is proud to be a long-time supporter of ABC Rocky Mountain! CONSTRUCTION • SPECIAL PROJECTS • SERVICE www.mtechg.com 26
Addressing the Skilled Trades Workforce Crisis BY MATT PRIDGEON, VICE PRESIDENT WEST REGION, LOENBRO Our industry faces an urgent and growing need for qualified tradespeople and professional staff. Market trends like onshoring, federal stimulus and aging infrastructure have amplified a significant labor shortage. Factors such as regulatory changes in the Inflation Reduction Act, insufficient skills training in primary and secondary education, and a retiring workforce have created a perfect storm of demand for skilled workers, particularly in field leadership roles. As President Donald Trump noted in 2018 during the rollout of his executive order on workforce development, “Many of these jobs require skills training, but not a college degree. Yet for too long, both the public and the private sectors have failed to develop innovative and effective training programs.” This challenge has become more urgent than ever. To overcome this crisis, the industry must address several key drivers: the lack of perceived dignity in trade careers, insufficient educational opportunities and an increasingly burdensome regulatory environment. Together, we can build a workforce ready to deliver excellence for decades to come. CONSTRUCTIOn ADVOCATE 27
The Challenges Driving the Workforce Gap The labor shortage is well-documented, and the numbers are staggering. According to the National Association of Home Builders (NAHB), the shortage of skilled tradespeople reached nearly 725,000 in October 2024, up from 500,000 in January 2024. Mike Rowe, a prominent advocate for skilled trades, encapsulated the issue: “Every year, for every five tradespeople who retire, two people replace them.” This gap is not confined to metropolitan areas or mega-projects. Rural regions are experiencing an even greater struggle. According to a Richmond Federal Reserve study, areas with fewer than 250,000 people face 20% more difficulty recruiting skilled labor. Consequently, wages in rural areas are rising at 8% annually, compared to 5.6% in urban areas. As urban centers expand infrastructure projects, rural communities face added pressure to meet workforce demands. This trend underscores the need for a comprehensive solution that addresses both rural and urban labor challenges. The Opportunity Amid the Crisis While these challenges may seem daunting, they also present an opportunity for our craft workforce, particularly for field leaders who can adapt, learn and deliver measurable results. With advancements in tracking and reporting, the impact of skilled leadership is easier to quantify than ever before. However, current outcomes often fall short of industry needs. By prioritizing workforce development, the industry can not only address today’s shortages but also prepare for future demands in infrastructure and energy security. Our Solution We are a self-performing service and construction provider headquartered in Westminster, Colorado, tackling this challenge head-on. As a values-driven company committed to grit and excellence in the industrial infrastructure space, we have partnered with ABC to create innovative workforce solutions. This partnership focuses on several key initiatives, including: • Advocacy for Smart Regulations: With support from ABC, we are advocating for policies like the Stronger Workforce for America Act (HR 6655) and addressing regulatory challenges in the Inflation Reduction Act that hinder workforce growth. • Empowering Local Communities: ABC’s mission aligns with our goals of training people where they are, ensuring that rural areas have access to the resources needed for workforce development. 28
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