A Presentation to By Chuck Gremillion Executive Director, C3

1. A Presentation to By Chuck Gremillion Executive Director, C3 May 17, 2017

2. What is C3? The Construction CareerCollaborative is a 501(c)(3) not-for-profit organization founded in 2009, 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.

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

5. The Impact • Lower quality craftsmanship resulting in greater waste and inefficiency leading to longer construction schedules and higher construction costs • Poorer quality buildings resulting in higher maintenance costs • Ever increasing labor unit costs with very limited improvement, if at all, to the wages & benefits of craft workers • Young people are not attracted to an industry with a reputation for improper pay practices, no employee benefits and limited training. • …and the cycle continues

6. C3’s Vision of the Future • With craft training, craft trades flourish. • Craft wages grow as the demand for skilled craft workers increases. • Young people are attracted to a career in the craft trades creating a sustainable craft workforce. • Job sites are safer. • Playing field is leveled for all. • Owners receive productivity, efficiency, and economy as well as high-quality construction, longer building lifecycles and lower lifecycle costs from their construction providers.

7. C3 - Construction Career Collaborative Mission As an alliance of socially responsible Owners, Contractors and Specialty Contractors, we will positively affect the issues facing the craft worker for the commercial and institutional construction industry in the Greater Houston Region in order to create a sustainable craft workforce. Principles • Promote the financial security, health and well being of Craft Workers • Require construction industry safety training standards for the workforce • Require craft training standards and certifications for the workforce as they are developed

8. What C3 is/isn’t? • We are an industry taking control of our issues, and donot advocate for a legislative solution. • We promote craft training for all craft workers and donot advocate for union shops or merit shops. • We do not take a position on immigration, but we support training for the craft worker no matter his or her origin.

9. Mission Supporters

10. C3 Board of Directors Jim Stevenson McCarthy Building Companies Mike Holland Marek Pete Dawson Texas Children’s Hospital Spencer Moore M.D. Anderson Cancer Center Russell HamleyABC Houston Chapter Ammie Hudson-BlahutaHudson Building Systems Jerry Lea Hines Tony MansoorianW.S. Bellows Construction Wayne McDonald Fisk Electric Steve MechlerTI Constructors Brandon Meyers SpawGlass Jerry NevludAGC Houston Diane OsanFKP Architects Glenn Rex MCA Houston John Roberts JLL Hal Sharp Gensler Tom Vaughn Vaughn Construction Bud Walters Pieper-Houston Electric LohnZyliczD.E. Harvey Builders Chuck Gremillion, Executive Director, C3

11. C3 Strategy This must be Owner Driven!

12. Owners who Endorse C3

13. C3 Accreditation Requirements Accredited Employer • Craft workers are employees and not independent contractors • Overtime paid in accordance with federal overtime laws • Workers Compinsurancefor all craft workers as required by Texas Workers’ Comp Act • OSHA 30 for all field supervisors & OSHA 10 for all craft workers prior to working on the job • Support on-going Craft Training • $1,500 annual accreditation fee Project Participant • Craft workers are W-2 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 & OSHA 10 for craft workers prior to arrival on job site • Support on-going Craft Training • ½% of the sum of all contracts on the project with a minimum of $100 or a maximum of $2,000 per project fee

14. C3 Accredited Companies • Accredited Employers • 22 Contractors • 173 Specialty Contractors • Project Participants • 66 Specialty Contractors • Certified Staffing Agencies • 7 Staffing Agencies

15. Accredited Employers – Contractors(22) Arch-Con Corporation Austin Commercial LP Axis Builders, LLC Balfour Beatty Construction Brookstone, LP D.E. Harvey Builders DPR Construction Durotech, Inc. Gilbane Southwest Humphries Construction Linbeck Group, LLC McCarthy Building Companies O’Donnell/Snider Construction Paradigm Construction Rogers-O’Brien Construction Skanska SpawGlass Construction Structure Tone Southwest, Inc. Tellepsen Trademark/HITT Vaughn Construction W.S. Bellows Construction Corp.

16. Accredited Employers – Specialty Contractors (151)

17. C3 Projects – under construction • Texas Children’s Hospital Pediatric Tower E Expansion • Memorial Hermann Healthcare System TMC Expansion • Museum of Fine Arts-Houston Expansion • MDACC Alkek Levels 20, 21 & 22 • MDACC League City • MDACC West Houston • St. Mary’s Seminary HVAC Systems Modification • Kirkland & Ellis Office Interiors • Shrine of the True Cross Catholic Church • Christ the Redeemer Catholic Church Activity Center Six projects completed Several more to begin construction in 2017

18. C3 Safety Committee Evergreen C3 Safety Refresher Training for the commercial construction industry launched 1/1/17 12 modules delivered monthly as Toolbox Talks • PPE (January) • JSA (February) • Ladders (March) • Electricity (April) • Heat (May) • Excavation (June) • Scaffolds/Lifts (July) • Hand & Power Tools (August) • Mobile Equipment/Struck by (September) • Housekeeping/Fire Protection (October) • Material Handling (November) • Fall Protection (December)

19. C3 Craft Training Committee • Craft training self-assessment to be used as a guide for all companies • To be included as part of C3 application process • Levels & Framework defined for a company’s craft training program • Pre-program • Recognized • Leader • Champion • Craft training toolkit • Go-by templates such as Letter of Commitment from senior executive, written training plan, needs assessment document, performance assessment of individual craft worker, career path examples, training reference materials • Hire Craft Training Champion to consult, coach & mentor C3 companies as they develop their programs – Position filled; She starts June 1st!! • C3 will NOT provide craft Training

20. C3 Training Database An electronic means to: • Track who is on the job • Track safety credentials • Track crafttrainingcredentials All craft workers and supervisors tracked • First name, Last name, Date of birth • Unique C3 number created for each individual • Through the Database, C3 invites Contractor to Project • Contractor invites Specialty Contractors • Specialty Contractor invites their sub tiers • Craft workers and supervisors assigned to C3 Projects within the Database by their employer • Contractor utilizes Database to verify OSHA safety credentials and receipt of C3 Orientation before worker sets foot onto project

21. C3 Metrics Reporting: • Man hours for the month • Total man hours for project • Recordable incidents • Lost time incidents • Number of workers with OSHA 10 • Number of workers with OSHA 30 • Number of workers who received C3 Orientation this month • Number of workers who received C3 Safety Training Module this month

22. Become a part of the craft workforce solution!More information available at www.constructioncareercollaborative.orgThank you!