1. Workforce Concerns? Construction Career Collaborative (C3) A Craft Workforce Solution September 24,, 2015 Presented by: Maria Aimone & Chuck Gremillion Workforce Concerns? Construction Career Collaborative (C3) A Craft Workforce Solution September 24,, 2015 Presented by: Maria Aimone & Chuck Gremillion

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 Industry Facts  The average age of a craft worker is approaching 50 and the average entry age into the industry is 29  According to the AGC, 74% of construction firms predict a shortfall of qualified skilled trade workers  Baby boomers occupy the majority of skilled trade positions, while younger workers are mostly employed in other non-vocational careers  Construction productivity is at an all-time low

4. 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!

5. Financial Security, Health, and Well Being + Safety Training + Craft Training What is C3? The Construction 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 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.

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

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

9. www.constructioncareercollaborative.org C3 Strategy: This must be OWNER DRIVEN!

10. 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.

11. Financial Security, Health, and Well Being + Safety Training + Craft Training 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

12. 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.

13. 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

14. www.constructioncareercollaborative.org C3 Owners

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 ½% of the sum of all contracts on the project with a minimum of $100 or a maximum of $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 Contractors Austin Commercial LP Axis Builders, LLC Balfour Beatty – Houston Brookstone D.E. Harvey Builders DPR Construction Humphries Construction Linbeck Group, LLC McCarthy Building Companies O’Donnell/Snider Construction SpawGlass Construction Structure Tone Southwest, Inc. Tellepsen Builders Vaughn Construction W.S. Bellows Construction Corp.

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 Astro Fence AVSI Group Baker Concrete Construction, Inc. Big City Access, Inc Bird Antenna Systems 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. ieSmartSystems, LLC 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 Network Cabling Services NetVersant Solutions II LLC Northstar Fire Protection of Texas P&Z Logistics, Inc. Peterson Beckner Industries Pieper-Houston Electric Polk Mechanical Company R&M Service Company, Inc. Roomi Group Corporation Schneider Electric Buildings Americas Slab Services, LLC Slack & Co. Contracting Inc. SolarNet Power the Future Southern Tile & Terrazzo Stanley Security Solutions TDIndustries TRW Modernfold Triangle Insulation W.W. Bartlett, Inc. Way Engineering Winco Masonry

18. Financial Security, Health, and Well Being + Safety Training + Craft Training C3 Projects The Woodlands Campus Owner: Texas Children’s Hospital General Contractor: Tellepsen Feigin Building, Level 18, OB/GYN Renovation* Owner: Texas Children’s Hospital General Contractor: W.S. Bellows *completed December 2014 Zachry Industrial* Owner: Zachry Industrial General Contractor: D.E. Harvey Builders *completion October 2015 Texas Children’s Hospital Pediatric Tower E Expansion General Contractor: W.S. Bellows Construction

19. www.constructioncareercollaborative.org Upcoming C3 Projects: Memorial Hermann Texas Medical Center Expansion General Contractor: Balfour Beatty Museum of Fine Arts Houston Expansion McCarthy Building Companies Hines Project (as yet unnamed) Tenant Buildouts with JonesLangLaSalle

20. To apply participants must fill out the two page application. Here is page 1 of the Accredited Employer application. There are 5 steps: 1. Company name etc 2. CSI division and number of craft workers 3. The C3 principles’ checklist 4. Associated fee 5. Complete page 2, the Craft Training Statement 5 5 1 1 2 2 3 3 4 4

21. Page 2, Employer’s Craft Training Statement of Participation There are 3 sections: 1. Company name etc 2. Type of craft training. It is possible to check the last two. Note the additional information for type of training. 3. Information about duration, credentials and possible career path. 1 1 2 2 3 3

22. Financial Security, Health, and Well Being + Safety Training + Craft Training At the job: Orientations should be conducted both in English and in Spanish Job posters are placed Random audits

23. Financial Security, Health, and Well Being + Safety Training + Craft Training Compliance In order to insure compliance with criteria noted on C3 applications, random job site audits will be performed. A database to help streamline the process is being developed. The objectives of the audit are: 1. To ensure that craft workers are paid by the hour. 2. To ensure that craft workers are W-2 earners. 3. To ensure that overtime for craft workers is paid in accordance with federal overtime laws. 4. To ensure that employment taxes, tax and non-tax reporting requirements are in compliance with applicable federal/state laws. 5. To ensure that workers compensation insurance is being provided for all craft workers. 6. To ensure that all craft workers and field supervisors have OSHA 10 or OSHA 30 safety credentials, respectively.

24. Financial Security, Health, and Well Being + Safety Training + Craft Training Random Audits The audit consists of three steps: 1. Jobsite trailer visits to review C3 job posters, Orientation and OSHA 10/30 tracking. 2. Labor compliance interviews will be conducted with randomly selected craft workers at the jobsite. 3. These randomly selected individuals are verified to the labor distribution reports of their respective employers to determine compliance with C3 payroll and worker compensation insurance requirements. This step will occur at the main office of the specialty contractor in order to maintain confidentiality.