Creating a Safe, Skilled & Sustainable Craft Workforce

1. Creating a Safe, Skilled & Sustainable Craft Workforce by Chuck Gremillion Executive Director, C3 November 2018

2. What is C3? The Construction CareerCollaborative • 501(c)(3) not-for-profit alliance of Owners, Contractors, Specialty Contractors, construction industry trade organizations and design professionals • Founded in 2009 • Goals • Reestablish a career in the skilled craft trades of the commercial construction industry as a great way to make a living • Create a safe, skilled and sustainable craft workforce.

3. The Problem During the past 35 years, the commercial-construction industry has regressed to a largely unskilled and unsustainable craft workforce.

4. What caused this complex problem? • Driven by the need to reduce cost in order to be low bid… • Craft training, for many trades, is reduced or eliminated. • (No craft training translates to no career path) • Craft workers are misclassified as independent subcontractors (receive Form 1099 & not a Form W-2). • Workers compensation insurance is not provided. • Building owners unaware or look the other way • Career in craft trades of construction industry perceived as dirty, dangerous and a dead end • “No Child Left Behind” enacted in 2001 • Baby Boomers retiring from workforce

5. The Impact • Lower quality craftsmanship resulting in greater waste and inefficiency • Lower quality buildings resulting in higher maintenance costs and a shorter building lifecycle • Ever increasing labor unit costs with very limited improvement 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, limited training and no career path. • Craft labor shortages

6. 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 construction industry in the Greater Houston region in order to create a safe, skilled and sustainable craft workforce. Principles • Advance the issues that positively impact the financial security, health and well-being of our construction craft workforce. • Actively search for and develop the best construction safety standards. • Commit to the development and delivery of continuous skills training linked to construction career paths for our craft workforce.  

7. C3’s Vision of the Future • With craft training linked to a career path, craft trades flourish. • Craft wages grow as the demand for the performance of skilled craft workers increases. • Young people are attracted to a career in the craft trades creating a sustainable craft workforce. • Job sites are safer. • The playing field is leveled for all construction companies competing for work. • Owners receive high-quality construction, longer building lifecycles and lower lifecycle costs.

8. 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 do not take a position on immigration.

9. C3 Strategy This must be Owner Driven!

10. C3 Owners

11. C3 Board of Directors Mike Holland MAREK (Chairman) Pete Dawson Texas Children’s Hospital (Vice Chair) Spencer Moore MD Anderson Cancer Center (Treasurer) AmmieBlahutaHudson Building Systems (Secretary) John Barnes Linbeck Steve DishmanBrookstone Russell HamleyAssociated Builders & Contractors of Greater Houston Jerry Lea Hines Tony MansoorianW.S. Bellows Construction Wayne McDonald Fisk Electric Steve MechlerTI Constructors (Division of Tellepsen) Brandon Meyers SpawGlass Jerry NevludAssociated General Contractors Houston Chapter Diane OsanCannon Design Craig Peterson Peterson Beckner Industries Glenn Rex Mechanical Contractors Association Houston John Roberts JLL Hal Sharp Gensler Jim Stevenson McCarthy Building Companies Tom Vaughn Vaughn Construction Bud Walters Pieper-Houston Electric LohnZyliczD.E. Harvey Builders Chuck Gremillion, Executive Director, C3

12. C3 Accreditation Requirements Accredited Employer • All craft workers are employees (W2 earners), not independent subcontractors and do not receive a 1099; no piece work • 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 on this project are employees (W-2 earners), not independent subcontractors and do not receive a 1099; no piece work • Overtime paid in accordance with federal overtime laws on this project • Workers Comp provided for craft workers on this project as required by Texas Workers’ Comp Act • OSHA 30 for field supervisors & OSHA 10 for craft workers on this project prior to arrival on job site • ½% of the sum of all contracts on this project with a minimum of $100 or a maximum of $2,000 per project fee

13. C3 Accredited Companies • Accredited Employers • 24 Contractors • 205 Specialty Contractors • Project Participants • 133 Specialty Contractors • Certified Staffing Agencies • 9 Staffing Agencies

14. Accredited Employers – Contractors (24) Anslow Bryant Construction Arch-Con Corporation Austin Commercial Axis Builders, LLC Brookstone, LP D.E. Harvey Builders DPR Construction Durotech, Inc. Forney Services, LLC 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 Tellepsen/TI Constructors Vaughn Construction W.S. Bellows Construction Corp. Westfall Constructors, LTD Whiting-Turner

15. C3 Projects – under construction • Texas Children’s Hospital Pediatric Tower E Expansion (completed 9/2018) • Memorial Hermann Healthcare System TMC Expansion • Museum of Fine Arts-Houston Glassell School (completed 7/2018) • Museum of Fine Arts-Houston Kinder Exhibition Hall • MDACC League City (completed 10/2018) • MDACC West Houston • Christ the Redeemer Catholic Church Activity Center (completed 7/2018) • Epiphany of the Lord Catholic School (completed 7/2018) • Sacred Heart Catholic Church (Conroe) (completed 10/2018) • Ronald McDonald House Phased Expansion (completed 9/2018) • MDACC Zayed Interior Construction Phases 2b, 2c & 3 • St. Theresa Catholic Church & School Renovation • MDACC Regional Care Center • Annunciation Catholic Church • Block 58 • San Jacinto College Central Campus Welcome Center • St. Martha Catholic Church • Christ the Incarnate Word Catholic Church Eleven projects completed prior to 2018

16. C3 Safety Training Initiative Evergreen C3 Safety Refresher Training for the commercial construction industry launched 1/1/17 12 modules delivered monthly as Toolbox Talks • Personal Protective Equipment (January) • Job Safety Analysis (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)

17. C3 Safety Metrics (August 2014 - September 2018) • Total Man Hours Worked on 25 C3 Projects –10,300,006 • OSHA Recordable Incidents - 41 • Total Project Recordable Incident Rate –0.80*(more than 4 times better than the national average for construction) • Total Lost Time Incidents - 4 • Total Project Lost Time Rate – 0.08** (95 times better than the national average for construction) • C3 Safety Training Attendees – 64,302 (16 months) *According to the U.S. Bureau of Labor Statistics, the Recordable Incident Rate nationally for all types of construction for 2016 was 3.2. **According to the U.S. Bureau of Labor Statistics, the Lost Time Incident Rate nationally for all types of construction for 2016 was 1.9.

18. C3 Craft Training • 4 Levels & Framework defined for a company’s craft training program • Pre-program • Recognized • Leader • Champion • Craft Training Champion • Consult, coach & mentor C3 companies as they develop their programs • Craft training toolkit (self service or coupled with consulting services) • Templates for framework elements • C3 does NOT provide craft training

19. Levels of Endorsement

20. C3 Craft Training Consulting Don’t know where to start? Want to get more out of your craft training program? Reach all of your company’s goals with FREE C3 consulting services

21. Framework Templates

22. Why Train? “We measure the success of our training based on the dollar amount of re-work that is done every year. We track our re-work on a phase code labeled “Call Backs.” Prior to 2008, Chamberlin did less than 25% of the revenue that we currently do and the total money spent on re-work was approx. $2,000,000.00 per year. Since we have implemented our training and our QA/QC Program, our average cost for call backs in the last 5 years is approx. $350,000 per year and trending down. This has allowed for us to spend more money in training and in “Profit Sharing” every year. In 2017 our training budget was $385,000.00.  In the 2017 Chamberlin University-Apprenticeship I Program, there is a 90% retention rate compared to a 72% overall retention rate at Chamberlin as a whole.From the 2016 Chamberlin University-Supervisor’s Training Program, there is an 85.7% retention rate after two years.” Art Canales Chamberlin Roofing & Waterproofing

23. Twitter: @ConstructionC3 Facebook: https://www.facebook.com/constructioncareercollaborative/ Instagram: https://www.instagram.com/construction_career_collab/ Email: chuck@constructioncareercollaborative.org