1. Workforce Concerns? Construction Career Collaborative (C3) A Craft Workforce Solution Presented by Chuck Gremillion Executive Director September 1, 2015 Workforce Concerns? Construction Career Collaborative (C3) A Craft Workforce Solution Presented by Chuck Gremillion Executive Director September 1, 2015

2. Financial Security, Health, and Well Being + Safety Training + Craft Training Introduction In the fall of 2009, a group of Owners, General Contractors and Specialty Contractors gathered to discuss the current state of the commercial construction workforce in the Greater Houston Area. The conclusion was that future demand for the commercial construction industry will far outpace the availability of qualified craft workers. In a nutshell, today’s craft workforce is not sustainable.

3. Financial Security, Health, and Well Being + Safety Training + Craft Training The Problem While the construction workforce is aging and less productive due to lack of training, the demand on our industry increases and becomes more technical every year. We must do more to recruit, train and retain craft workers to meet the demands of our industry. In a nutshell, we must make a career in the commercial construction industry attractive once again!

4. Financial Security, Health, and Well Being + Safety Training + Craft Training C3 Mission As an alliance of socially-responsible Owners, Contractors and Specialty Contractors, we will positively affect the growth of a sustainable workforce for the commercial construction industry.

5. Financial Security, Health, and Well Being + Safety Training + Craft Training What is C3? Constructive Career Collaborative is a 501(c)(3), not- for-profit organization, which seeks to reestablish a career in the craft trades of the commercial construction industry as an excellent way to a middle class lifestyle, thereby recreating a sustainable craft workforce.

6. Financial Security, Health, and Well Being + Safety Training + Craft Training Mission Supporters

7. www.constructioncareercollaborative.org Steve Mechler Balfour Beatty Brandon Meyers Spaw Glass Glenn Rex Mechanical Contractors Association John Roberts Jones Lang LaSalle Americas Tom Vaughn Vaughn Construction Bud Walters Pieper-Houston Electric Kevin Camarata Camarata Masonry Systems Laura Price Gautreau Polk Mechanical Jim Furr Gensler Russell Hamley ABC Greater Houston Jerry Nevlud AGC Houston Tony Mansoorian W.S. Bellows C3 Board of Directors Jim Stevenson, Chairman McCarthy Building Companies Mike Holland, Vice Chairman Marek Brothers Systems Spencer Moore, Treasurer MD Anderson Cancer Center Pete Dawson, Secretary Texas Children's Hospital

8. www.constructioncareercollaborative.org C3 Strategy: This must be OWNER DRIVEN! Financial Security, Health, and Well Being + Safety Training + Craft Training

9. www.constructioncareercollaborative.org What C3 Isn’t:  We are an industry taking control of our issues… we are not advocating for a legislative solution.  We promote craft training for all craft workers… we are not advocating for union shops or merit shops. we are not taking a position on immigration. Financial Security, Health, and Well Being + Safety Training + Craft Training

10. What caused this problem? Craft & Safety Training reduced or eliminated Elimination of overtime pay, social security, federal & state unemployment taxes Poor employment practices; depressing wages Misclassification of craft workers as subcontractors Owners that look the other way Elimination of vocational education in K-12 Perception construction industry as dirty, unsafe and no career path Perception of endless supply of craft workers

11. Financial Security, Health, and Well Being + Safety Training + Craft Training The Result If we cannot solve this problem, we will not be able to sustain the craft workforce - the foundation of the building industry.

12. Financial Security, Health, and Well Being + Safety Training + Craft Training Principles 1. Financial Security, Health, and Well Being of Craft Workers ▪Paying a fair wage by the hour with applicable overtime and not misclassifying the worker as a subcontractor ▪Provide worker security by paying unemployment taxes, providing workers’ compensation insurance and contributing to social security for the workforce 2. Safety Training ▪Construction industry safety training standards for the workforce as follows: All craft workers have OSHA 10-hour card All on-site supervisors have OSHA 30- hour card (We are developing a safety refresher for OSHA 10 & 30 since it is required only once in a career.) 3. Craft Training ▪ Participate in and support the development of industry craft training leading to portable training credentials for the craft worker

13. www.constructioncareercollaborative.org Like LEED: CompetentQualifiedSkilled

14. www.constructioncareercollaborative.org C3 Owners Financial Security, Health, and Well Being + Safety Training + Craft Training

15. www.constructioncareercollaborative.org C3 Requirements Two Levels of Participation Accredited Employer $1,500 annual accreditation fee Craft workers are W2 earners and do not receive a 1099. Overtime paid in accordance with federal overtime laws Workers Comp for all craft workers as required by Texas Workers’ Comp Act OSHA 30 for all field supervisors* OSHA 10 for all craft workers* Project Participant $2,000 per project fee Craft workers are W2 earners and do not receive a 1099. Overtime paid in accordance with federal overtime laws Workers Comp for all craft workers as required by Texas Workers’ Comp Act OSHA 30 for field supervisors prior to arrival on job site OSHA 10 for craft workers prior to arrival on job site

16. Financial Security, Health, and Well Being + Safety Training + Craft Training Accredited Employers General Contractors

17. Financial Security, Health, and Well Being + Safety Training + Craft Training Accredited Employers Specialty Contractors ABC Steel Products Co. Inc. dba ABC Doors Absolute Testing Services, Inc. Ace Services ACS Flooring Group, Inc. Admiral Glass Company Alpha Electric Company American Iron & Glass LLC Astro Fence AVSI Group LLC Baker Concrete Construction, Inc. Big City Access, Inc Bird Antenna Systems, Inc. BMF Solutions, LLP Bonded Lightning Protection Systems, Ltd. Brochsteins Inc. Building Specialties Inc. Byrne Metals Camrata Masonry Systems Chamberlin Roofing & Waterproofing Circle 8 Fluid Services, Inc. Construction Eco Services EMCOR, Gowan, Inc. F&S Floors, Inc. FGH Insulation Fire Safe Protection Services LP FireTron Inc Fisk Electric Company Gulf Star Roofing and Sheetmetal Halco Life Safety Systems, Inc. Haldeman-Homme Holes Incorporated Honeywell International Humphrey Company, Ltd. JM Maly, Inc. Joslin Construction Karsten Interior Services, LP Kauffman Co. Kenmor Electric Marek Brothers Systems McCorvey Sheetmetal Melton Electric Inc. Mid-West Electric Co. Inc. Miller Electric/Sitesecure MLN Company NetVersant Solutions II LLC Network Cabling Services Northstar Fire Protection of Texas P&Z Logistics, Inc. Peterson Beckner Industries Pieper-Houston Electric Polk Mechanical Company R&M Service Company, Inc. Schneider Electric Buildings Americas Slab Services, LLC Slack & Co. Contracting Inc. SolarNet Power the Future Southern Tile & Terrazzo Stanley Security Solutions TDIndustries Triangle Insulation TRW Modernfold Co., Inc W.W. Bartlett, Inc. Way Engineering Winco Masonry

18. Financial Security, Health, and Well Being + Safety Training + Craft Training C3 Beta Projects Center for Advanced Biomedical Imaging Research Phase III Owner: MD Anderson Cancer Center General Contractor: Vaughn Construction Zayed Building - Center for Personalized Care Owner: MD Anderson Cancer Center General Contractor: Vaughn Construction Mid-Campus Administration Building Owner: MD Anderson Cancer Center General Contractor: Linbeck Multi-Phase Project Build Out Owner: Texas Children's Hospital General Contractor: WS Bellows Construction St. Mary's Seminary - Borski Athletic Center Renovation Owner: Archdiocese of Galveston-Houston General Contractor: Brookstone Pavilion Owner: MD Anderson Cancer Center General Contractor: McCarthy Building Companies

19. Financial Security, Health, and Well Being + Safety Training + Craft Training C3 Projects The Woodlands Campus Owner: Texas Children’s Hospital General Contractor: Tellepsen Zachry Industrial General Contractor: D.E. Harvey Builders Feigin Building, Level 18, OB/GYN Renovation* Owner: Texas Children’s Hospital General Contractor: W.S. Bellows Construction *completed December 2014

20. Upcoming C3 Projects: Memorial Hermann Texas Medical Center Expansion General Contractor: Balfour Beatty Texas Children’s Hospital Pediatric Tower Expansion General Contractor: W.S. Bellows Construction Museum of Fine Arts - Houston Expansion General Contractor: McCarthy Building Companies Hines Project (as yet unnamed) Financial Security, Health, and Well Being + Safety Training + Craft Training

21. We need INFLUENTIAL Leaders ✓ Leaders have a long range view of the industry. ✓ Leaders have the courage to lead by example when it may be unpopular to do so. Endorser -Owners- Accredited Employer Champion Craft Worker -Contractors & Specialty Contractors- -Organizations & Associations- -One who performs labor on a project-

22. C3: Together we… Provide middle class opportunities that lead to creation of a sustainable construction workforce Attract a verifiably qualified workforce Recognize a healthy and safer construction industry Higher quality buildings in less time with lower maintenance costs Contribute to a better insured and trained population Financial Security, Health, and Well Being + Safety Training + Craft Training