Annual Report 2016 Associated General Contractors of New Hampshire Leading the industry since 1949, AGC of NH continuously works with its diverse membership to improve the commercial construction industry. This diverse membership includes a network of general contractors, subcontractors, material suppliers, equipment dealers, architects, engineers, consultants, attorneys, sureties, accountants, and more. Through legislative advocacy and outreach, the Association works for both sides of the industry- highway and building, both union and open shop.
President s Message I would first like to thank the AGC of NH membership for the honor of serving as your 2016 Association President. Given the general election, 2016 was quite an exciting year to be involved in the association. Members had the unique opportunity to meet and speak with several local candidates throughout the year, such as Kelly Ayotte, Chris Sununu, and Colin Van Ostern, at the association s luncheon series held at the AGC office. The membership also took part in AGC s efforts on important issues facing the Bill Stevens Harvey Construction Corp. 2016 AGC of NH President construction industry. The Board of Directors and other committees weighed in on a booklet detailing the Road Usage Fee, a bill proposed by Representative Norm Major regarding infrastructure funding in New Hampshire. The booklet, called Leveling the Playing Field in Transportation Funding, will likely be a key to advocating for funding solutions in 2017. Moving forward, we will continue to be involved in providing the legislative benefits and industry resources that you deserve and upon which you rely. We are pleased to report that our membership holds steady and we look forward to welcoming new members into the AGC community in 2017. The New Hampshire construction industry also saw some progress made on truck weight statutes after the AGC played a major role in clarifying dump trailer weight limits. Additionally, the association continued working with the University System of New Hampshire to study selection methods, an issue that has been discussed since the early nineties. Moving forward, we will continue to be involved in providing the legislative benefits and industry resources that you deserve and upon which you rely. The recently approved change in dues structure will help simplify recruitment efforts going into the new year. We are pleased to report that our membership holds steady and we look forward to welcoming new members into the AGC community in 2017. Thank you for your hard work over the past year and for supporting the association as a whole. I encourage you to remain active by serving on committees, attending our seminars, and participating in our annual golf tournament. On behalf of AGC of NH, we wish our membership a safe and profitable 2017. Support Sincerely, Bill Stevens Bill Stevens 2016 AGC of NH President Dedication Leadership 2
Executive s Message Wow, what a year in politics! Elections dominated so much of the discussion this year it s hard to look back at all the things the association accomplished. Legislatively, I m happy to report that we succeeded in defeating the prevailing wages proposal and noise level limits, but the Road Usage Fee is still on the drawing table for 2017. This year, members were provided with the most opportunities to meet with officials, candidates, and state agencies than perhaps any year before. The DOT/ AGC Construction Overview Seminar, the Fall Social, the annual golf Gary Abbott AGC of NH Executive V. P. tournament, and the two safety luncheons made 2016 a highly social year for the association. Also, I know many of you took full advantage of all the political luncheons that were held between March and August, speaking directly with candidates regarding our thoughts and concerns within the industry. No one expected the federal and state elections to be such a historic one in which both the federal and the state legislatures turned completely Republican. As a result, 2017 will definitely be a change from the last 10 years with new Your participation is crucial to ensure that we are moving in the right direction and proposing the best solutions to our newly elected officials. perspectives on current issues as well as those that haven t been addressed for many years. It s also worth noting the high success rate of the association s Political Action Committee (PAC). During the primaries, the PAC experienced an unprecedented 100% success rate of candidates across both aisles who made it onto the ticket. This was followed by a whopping 91% success rate in the general election, with only one candidate endorsed by the PAC not being elected. In addition to having so many of our endorsed candidates winning office, the AGC is more than ready to take on the issues going into the new year. In 2016, we undertook multiple data-compiling efforts on our top issues, such as the USNH selection process, the Road Usage Fee, truck weight limitations, and school building aid. The association has comprehensive reports on each of these issues prepared for the 2017 session. However, your participation is crucial to ensure that we are moving in the right direction and proposing the best solutions to our newly elected officials. We have all heard them say that infrastructure is a top priority, but now comes the challenge of making it a reality. Success Participation Sincerely, Gary Abbott Gary Abbott AGC of NH Executive V.P. Collaboration 3
Legislative advocacy is one of the most important functions that the Association performs. Every new law that reduces regulatory burdens or provides incentives for development helps our industry grow. Committed to Advocacy Road Usage Fee Infrastructure funding has always been a top priority for the AGC. Representative Norm Major s Road Usage Fee bill was one of the most important issues for the association this year. The proposal aims to address the problem of electric and highly fuel-efficient vehicles that don t contribute to the state s highway fund through fuel taxes. The legislation would mandate a road usage fee at the time of registration for vehicles that qualify. The challenge has been in ironing out the details surrounding the formula and what could be considered fair. AGC attended hearings for the original bill, and is preparing a 2017 report through A Safer Road to Tomorrow on the issue called Leveling the Playing Field in Transportation Funding: An Overview on the Road Usage Fee. The report looks at the overall issue and how to make the Road Usage Fee more practical for New Hampshire. The association expects this legislation to remain a top issue in 2017. Truck Weights The AGC took immediate action when we heard about dump trailer drivers being ticketed after a change in state policy that did not match current practice. After researching the issue, the association released a white paper and began working with state agencies for a solution. Senate Bill 550 was proposed, which would clarify in statute that certain dump trailers could carry up to 99,000 lbs. AGC testified in favor of the bill and recommended language for the amendment. The bill passed both chambers with the amendment. The association continues to work with congressional delegates to propose changes that will bring federal law in line with the latest NH statutes. Waters of the US (WOTUS) AGC s Environment Committee kept a close eye on the progress of the U.S. EPA and Army Corps of Engineers rule expanding federal jurisdiction over navigable waters known as 'waters of the U.S.' The rule was a drastic expansion of federal jurisdiction that would have caused delays in obtaining federal Clean Water Act permits and triggered increased construction costs. In January, the association sent letters to New Hampshire delegates encouraging them to vote against the rule. Despite President Obama vetoing a joint resolution to halt the new WOTUS rule, a nationwide stay remains in effect. Wetlands Mitigation In July, the New Hampshire Department of Environmental Services (NHDES) held a hearing regarding the wetlands rule-making process. Members of the AGC Environment Committee attended the meeting, including Jim Gove of Gove Environmental Services, who read and submitted the association s suggestions. He shared the AGC s concerns on delays in projects caused by permits, the ARM calculator, and mitigation ratios. State Davis-Bacon AGC has always taken an active role in opposing prevailing minimum hourly wage and benefits for the construction industry. The latest state Davis-Bacon legislation would have mandated this for all employees working on state public projects. The association testified in opposition to HB 1641 and submitted a position paper outlining our major concerns. The bill ultimately failed in the House. 4
USNH Methods Since the early nineties, AGC of NH has been holding meetings and open discussions with the University System of New Hampshire (USNH) regarding their contract requirements and selection processes. This year, the association wanted to address the concerns of numerous local contractors who feel they are being left out of the process completely. With the help of the USNH, which provided AGC with data regarding project awards and selection methods used over the years, we released a comprehensive story that highlighted the very low percentage of local contractors on CM and Design Build projects. The story also emphasized the importance of utilizing more inclusive competitive bid processes to keep costs down and encourage participation of local contractors. Workers Compensation After years of legislation regarding the definition of independent contractor and who should qualify for Workers Compensation, this year the AGC formed a subcommittee to help develop a solution. The committee consisted of building contractors, highway contractors, and insurance companies. After reviewing state statutes, the committee came up with several suggestions and is currently taking steps to work with other construction associations to build industry consensus going into the 2017 legislative session. testified in opposition to this bill because the noise level limitation would have shut down all types of construction activity. The bill went on to fail in the Municipal Committee. Bi-Weekly Newsletter This year s 26 newsletters were intended to keep members up to date on ongoing AGC of NH concerns and causes. There were several important issues addressed in the publication throughout the year, many of which are discussed in this annual report. Newsletter topics included: Know Your Candidates NH Ten-Year Transportation Improvement Plan School building aid Waters of the US (WOTUS) Building Code Updates In the [USNH] report, the association highlighted the importance of utilizing more inclusive competitive bid processes to keep costs down and encourage the participation of local contractors. Public-Private Partnerships The association played an active role in the Public-Private Partnership (P3) legislation. Senate Bill 549 establishes an oversight committee with the authority to approve infrastructure partnerships. As advocated by AGC, the Senate amended the bill to require Design Build procedures. AGC shared its concerns over the bill, and the language was reworded to require a hearing and governor s council approval before requests for proposals are sent out to contractors. Noise Level Regulation Another problematic bill the AGC helped defeat was House Bill 1533, which would have established a city and town noise level limitation for permanent machinery. AGC Gov. Maggie Hassan Signs 10-Year Transportation Plan A Safer Road to Tomorrow As the source for information on highways and driver safety, A Safer Road to Tomorrow continued its reporting in 2016. The newsletter, a publication produced by the Safer Roads Coalition, focused on advocating for the state s development of roads and infrastructure. Headlining stories from this year included: FAST Act Governor Hassan, NHDOR Accept Federal TIFIA Funds 700 Miles of Paving and Pavement Preservation New Hampshire Gas Prices AGC Plans Room Newsletter 2016 saw a new and improved Plans Room Newsletter. Every other Tuesday, members receive a e-newsletter filled with advertised projects and low bids. Members also have the opportunity to view hard copies of most of those projects in the AGC office plans room. 5
Engaging with Candidates 2016 Political Luncheon Series This year, the association focused on the local election for its 2016 Luncheon Series as a way to connect members with various candidates. The series included five free luncheon events held from February through August, each featuring various local candidates, who listened to members concerns and answered questions about their central campaign platforms. In the general election, the PAC contributed to 11 candidates on both sides of the aisle, 6 of which hadn t been supported in the primaries either because they had no opponent or not enough was known about them. AGC saw a staggering 91% success rate in the general election, with only one candidate not getting elected. February Luncheon with Congressional Candidate Jack Flanagan The list of guest speakers included: Representative Jack Flanagan Speaker of the House Shawn Jasper Gubernatorial Candidate Colin Van Ostern Senate Candidate Kelly Ayotte Congressional Candidate Rich Ashooh Gubernatorial Candidate Chris Sununu March Luncheon with Senate Candidate Kelly Ayotte In 2013-2014, the PAC received a total of $18,000 from companies, and distributed a total of $14,050 to candidates. In 2015-2016, the PAC received $6,500 and distributed $17,700. Thank you to all those who contributed to the AGC of NH PAC and congratulations for a successful election cycle! The association would like to thank all of our sponsors, Blaktop, Hinckley Allen, Gemini Electric, and Aspen Insurance Agency for making this year s luncheon series possible. Political Action Committee Since 2016 was an election year, it was also a busy year for the AGC of NH Political Action Committee (PAC). This year s election was an extremely close one up and down the ballot, with some races being too close to call until the next evening. With such a closely contested election cycle, AGC s Political Luncheon Series helped members make educated decisions during the PAC process. The AGC of NH PAC s contributions are restricted to local races. During the primaries, the PAC supported a total of 19 local candidates, both Republican and Democrat. Every single one of those candidates won their spot on the ballot in November, a first in the association s history. August Luncheon with Gubernatorial Candidate Chris Sununu 6
Leading Connections AGC/DOT Construction Overview Seminar In March, the AGC of NH and the NHDOT hosted a Construction Overview Seminar at the Grappone Conference Center in Concord. The event included breakfast, a welcome speech by DOT Commissioner Victoria Sheehan, and several presenters from the department speaking on various topics facing the highway construction industry. The seminar was sponsored by Continental Paving, George Cairns & Sons, Hinckley Allen, Pike Industries, and the Rowley Agency. 2016 Annual AGC Golf Tournament In September, the association held its annual golf tournament at Candia Woods Golf Course. Members and guests mingled while enjoying a beautiful fall afternoon on the course. The tournament was held in a bramble format and featured contests including straightest drive, longest drive, closest to the pin, and the color ball contest. This year s winner of the Company Challenge Trophy was Milton CAT, which took back the trophy from Hutter Construction, last year s champion. Congratulations to all of the tournament winners! Many thanks are also extended to the sponsors, whose support is critical in ensuring a successful event. AGC of NH also thanks its volunteers and looks forward to another exciting golf tournament next year. 2016 AGC of NH Fall Social Luncheon In October, AGC held its first ever fall social. Members gathered at the Deerfield Restaurant in Manchester to honor this year s recipients of the National AGC Safety Awards (NASA) as well as listen to presentations from special guests. Four members were recognized for their outstanding accomplishments in safety. Each achieved a Zero Incident Rate in 2015. The winning companies were: D.R. Key Corporation Harvey Construction Pike Industries R.M. Piper Guest speakers included Peter Stamnas, Director of Project Development at the NH Department of Transportation, and Michael Connor, Deputy Commissioner of the NH Department of Administrative Services.The event was sponsored by Harvey Construction and The Rowley Agency. Safety Officers Luncheons with OSHA The AGC Safety Group hosted two luncheon events this year geared toward safety officers. The first one was held in February and featured Jim Laboe of Orr & Reno, and the second luncheon was held in November and featured Andy Palhof of OSHA. The association thanks sponsors Orr & Reno, Hutter Construction, and ADA Traffic Control for making these safety luncheons possible. 7
Associated General Contractors of New Hampshire 48 Grandview Road Bow, NH 03304 Tel: 603-225-2701