Dependant Foundations: Moving On Up
Byline: Talia J. Nelson, Marketing & Member Services
You may have seen the name Mark Markovich beside “Treasurer” on the list of Concrete Foundations Association’s Board of Directors, but that is not the only organization in which Markovich actively participates. Markovich has been president of
Dependant Foundations in Brighton, Michigan for the past 20 years. Dependant Foundations started out in Markovich’s yard; moved to a small yard near his home; and finally relocated to a 10-acre yard with buildings, centrally located in Dependant Foundation’s market. What began with three employees – that includes Markovich – is now a successful business with approximately 45 employees. They provide such services as excavation, slabs, and walls – and pour 8.52 basements per week.
Markovich contributes his success to his dedicated employees. “Most of my employees have been with Dependent Foundations for 8-15 years,” Markovich states. “They are my biggest assets.”
Approximately 70% are seasoned veterans- that’s extraordinary in an industry known for high turnover. Because of this, Dependant Foundations excels in customer service. The employees are dedicated to growing the company and satisfying the customer.
With such an experienced staff, Markovich was able to add technological advancements to increase production without increasing labor. He purchased a Geodimeter, a sophisticated layout device that combines a transit (leveling device), electronic tape measure, and a computer; and Autocad, a computer aided drafting and design software package. To accompany this new technology, Dependant Foundations hired a full time salesman with great experience and skills in Information Technology. Once again, making sure that Dependant Foundations provides the best possible customer service to their clients.
While Markovich continually updates his equipment, he recently purchased a 38 meter Putzmeister Z Boom and 10’x 9’ BEP Forms, he is reluctant to give credit too hastily. As Markovich states, “I’m always looking for a better way to do things.” This could explain his active role in the CFA. Markovich thinks networking in the association is one of the biggest benefits of being a member.
“Members sharing their experience, especially in the equipment acquisition equation,” Markovich explains.. “What members experience vs.. what salesmen tell you…its invaluable..”
CFA provides the platform for developing relationships with other contractors who truly care about growing their businesses. The Association also provides research that is invaluable to many in the concrete industry. Such as the cold weather testing completed by the CFA Cold Weather Research Committee. CFA members spent endless hours testing the concrete, compiling the data, and then creating a report so CFA members could benefit from the research. For these reasons and many others, Markovich plays an active role on the CFA board.
As for the future of Dependant Foundations…another 20 years at least. Markovich would like to enter the concrete home construction market in Michigan. He’s among the right crowd in the CFA. The Concrete Homes Council, an alliance of the CFA, promotes the benefits of cast-in-place concrete construction.
For more information about the Concrete Foundations Association or The Concrete Homes Council, contact Talia Nelson at 866-CFA-WALLS or email tnelson@cfawalls.org.
Foundations Plus: Laying the Foundation
By: Foundations Plus, Utica, Oh
The fall of 2003 marked the completion of a quarter century of service by our firm, Foundations Plus, owned and operated by Mahlon D. Eash and family. We began the business in 1978 to supplement the dairy farming income needed to support our family of ten children. In those early days, we poured a wall or two per week… usually for a neighbor, family member, or local contractor.
We developed a special interest in pouring retaining walls and residential foundation walls. From the beginning, Mr. Eash and his sons always made it a practice to personally oversee the footer and wall work on each job to insure that our walls were straight and square. Quality and customer satisfaction are hallmarks of our poured walls.
Year by year, our business slowly but steadily increases. All of this increase grows out of referrals and word-of-mouth recommendations from those for whom we have word. Today, we pour retaining and foundation walls for contractors, friends, and family members in a radius that spans about 60 miles from our office in Utica, Ohio.
Over the past 26 years, there have been many changes in our local area, the nation, and around the world. But some things haven’t changed. Mahlon Eash Sr., now 77 years of age, and his sons still go out each day to oversee the footer and wall work at our jobsites, and on most days they still put in nearly 12 hours. From sun up ‘til sundown, wherever a Foundations Plus wall is being poured, a family member is present to oversee the work and insure that quality and customer satisfaction continue to be the hallmarks of our poured walls.
Our company motto is taken from I Corinthians 3:12: “For other foundation can no man lay that that is laid which is Jesus Christ.” As He is the strong and sure foundation for faith which lead life eternal, so we strive to reward the confidence you place in us by building walls that will stand secure for this present age.
We look forward to the future.
Menke Brothers Construction Company:
Talia J. Nelson, Marketing & Member Services
The Concrete Foundations Association was beginning just about the time that another organization was forming. Menke Brothers Construction Company in Fort Jennings, Ohio began with only seven employees. Just as the association has grown, so has the staff at Menke Brothers. They employ 45 and provide a variety of services, including excavation, flatwork, concrete and stone placement – in other words…the complete foundation package.
To make this complete package the best in quality, Menke Brothers works hard to hire key personnel who want the business to grow, buy good equipment that will get the job done faster and with less labor, and provide guarantees that benefit customers. Included in their equipment is a Stone Slinger, Putzmeister TB 80, mini excavator, and boom trucks. All of these purchases have increased their productivity; but more importantly, they’ve enhanced the quality of their work.
“The Putzmeister TB 80 allows us to place concrete on tight lots fast with less man power,” states Tom Menke, Treasurer of Menke Brothers Construction Company. “The mini-excavator allows us to dig additions and cave-ins while keeping our excavator available to dig basements.”
They’ve also added a Data Transmission Network (DTN). Menke explains, “The DTN allows us to look at the weather each morning to help determine whether or not we can pour.” This prevents crews from arriving at job sites, only to realize that the weather is not cooperating. Less time is wasted in travel to sites where they are unable to pour due to the weather.
Another technological advancement they have benefited from is the use of Quick Books, an accounting program for the computer. “Quick Books allows us to see our financial status at the click of a button,” states Menke. “We can see more in depth reports on which facet of our company is producing the greatest profits.”
Specialized crews, state-of-the-art equipment, and up-to-date computer software have all helped make happy and satisfied customers of Menke Brothers Construction Company.
The CFA has also helped. CFA staff and members are always available to provide information regarding concrete facts or company issues. The association is a place to turn to find answers, which give contractors knowledge needed to provide the most expertise in the poured wall industry. One such example Menke Brothers is thankful for is the cold weather concrete research. It has provided invaluable information to all contractors who have to pour in colder climates. Menke Brothers will continue to be an active part of the CFA and continue to work for their customers, which will ensure they maintain continued success and growth.
CFA 30th Anniversary Summer Meeting: The Fourth of July’s Grand Finale
Thirty Summer Meetings…who can say they’ve been to all of them? Not a lot of us…possibly Joan Ausbury? A lot has changed over the years, as things just keep getting better and better. There will be no exception this year; the CFA has a lot in store for us.
The schedule will be a little different this year though – more contractors say they want to golf. It’s a great opportunity to golf with other contractors and National Associates, and get to know them personally. So this year, the educational seminars will take place in the mornings of Thursday and Friday, July 7 & 8, 2005, which leaves Saturday, July 8, wide open for the greens. For those of you who like me, are golf challenged, there are plenty of other tourist attractions that you can fill your time with. (Maybe someone will let me go along and just drive the cart.)
The Board and Committee meetings will be on Wednesday, July 6, in the afternoon. The Opening Tradeshow and Reception is scheduled for Thursday, July 7, from 6:00 to 9:00 PM. As usual, the suppliers will bring their newest products. They support us so much throughout the year; we need to show our support for them by attending this event. It’s a great time to catch up with other members and introduce yourself to faces you don’t recognize. The CFA is dedicated to uniting concrete contractors and professionals to promote the mutual interests of the industry. One of the best ways to do this is by getting to know one another’s joys and frustrations.
The CFA staff also wanted to make sure that there were no surprises on this trip. Although they can’t control the weather, they can make sure that the hotel accommodations fit our needs. In October, while there for A.C.I., Ed and Jim visited the San Francisco Hyatt Embarcadaro for a tour, and also toured the big city. In the next issue of Concrete Facts, look for Jim’s article on the exciting places to go while you’re in San Fran.
The evening activities will remain on Friday and Saturday evenings. Friday night’s event is the USSB Hornet, a world-class sea, air and space museum with an emphasis on the legacy and history of aircraft carriers and naval aviation. The Saturday night event is the Hornblower, “a majestic vessel, perfect for the world’s most scenic waterway.” Included in the Saturday event will, of course, be karaoke. We’ve sung in the mountains, we’ve sung near the ocean, it’s about time we sang on a boat in the sea! (OK, OK, I’ll promise not to sing!)
So mark it on your calendar – start making reservations – because this summer meeting is going be the grand finale to the Fourth of July fireworks display. Don’t miss out!
Terry Lavy, CFA President, Lavy Concrete Construction Inc. terry@lavyconcrete.comRegional Meetings
The Concrete Foundations Association is expanding its regular spring and fall meetings beginning in spring 2005 in Minneapolis as part of our attempt to reach more CFA members (and potential members) with our educational and networking opportunities. This is also an opportunity to support our newly forming local chapters.
The first regional meeting will be held Saturday, April 2, 2005, in the Minneapolis, Minnesota area. The Minnesota Concrete Foundation Association (MCFA) was the first local chapter to organize under the banner of the CFA and we want to give their 40+ members as much support as possible.
There are several other reasons for going to a regional meeting in the spring and fall versus our standard Foundation Fundamentals seminar. First, many workers have already attended Brent Anderson’s Foundation Fundamental’s seminars. Both MCFA and Brent are anxious to move on to cover more in depth information about foundations and concrete.
Second, while the CFA Annual Summer Meeting remains our flagship event, the regional meetings present an opportunity for smaller companies to partake in our excellent educational offerings and informal networking opportunities. These meetings are held on a single day versus the multi-day format of the summer meetings. This allows smaller firms to participate and larger companies can send more people, for a smaller investment of time and money.
The format includes concurrent sessions and round tables with material and content along two paths. One path has been developed for the company managers and office personnel, the other for the field workers and foremen. The educational portion of the meetings are approximately 5 hours long, followed by a cocktail reception and table-top displays. There are no off-site or social activities planned for the regional events. Attendees can be in and out in a single day. The shorter events give attendees a taste for what the longer and more comprehensive summer meetings are like.
Chapters are also in the formative stages in Atlanta , Pittsburgh, Connecticut, and Raleigh. Future regional meetings will be staged in those cities to support their efforts. If you are interested in forming a CFA chapter in your city or state, contact Talia Nelson at CFA at 866-232-9255 or tnelson@cfawalls.org.
Ed Sauter, Executive Director, CFA esauter@cfawalls.orgCFA Honors Brad Barnes with MVP Award
Brad Barnes, PE received the first ever CFA MVP Award at ACI’s Northeast Ohio Chapter monthly meeting on Thursday, November 11, 2004. Barnes, the ACI Chapter Director, was chosen for his time and effort put into the CFA Cold Weather Research Program.
Jim Baty, CFA Technical Director, gave a brief presentation on the significance of the CFA Research Program. Following the presentation, Baty presented the award, on behalf of the CFA, to a surprised Barnes in appreciation for his tireless efforts. CFA Cold Weather Committee members in attendance included, Scott Smith of MPW Construction, Frank Ramey of Tri-County Excavating, Jim Baty and Rick Buccini of Osborn-Medina Concrete. Buccini was instrumental in scheduling the evening, unbeknownst to Barnes. Seventy-five ACI members turned out to support one of their own.
The events surrounding the award were highly educational. Baty’s presentation focused on the background and purpose for the research, and completion of the final stages of durability and freeze/thaw cycling that substantiated the performance results of the mix designs. Baty also finalized the transition to practice for those in attendance. The evening concluded a panel discussion moderated by Barnes, Baty, Buccini, and several other local professionals with key experience in cold weather concrete. Attendees asked questions to further understand the research presented and the impact of cold weather in general to a variety of applications.
This research program as been a total success,” states Baty. “The efforts put forth by Barnes coincided with significant guidance by the Committee Chair, Terry Lavy, and tremendous industry and member contribution.”
The final results of this effort will be realized later this month as the CFA distributes the Cold Weather Research Report. All CFA members will receive one copy. Members can purchase additional copies for $14.95, and $29.95 for non-members. Contact Janette Barr, jbarr1@cfawalls.org, or Jim Baty, jbaty@cfawalls.org, or call toll free 866-CFA-WALLS (232-9255) for more information.
MTSU Unveils Degree in Con crete Construction
By Ed Sauter, Executice Director
Where does one go to learn how to run a concrete construction business? Not the nuts and bolts of building a footing or wall, those are still best taught on-the-job. I’m talking about finance, estimating, managing personnel, marketing; the things that can make or break a business even if you pour the best wall in town. Sadly, the options are few. You can learn the way most contractors do – from their boss (who is often a parent) or from the School of Hard Knocks. There is a new, attractive alternative.
Situated 30 miles southeast of Nashville, Tennessee, in the quiet (relatively quiet) city of Murphreesboro, is Middle Tennessee State University. A rapidly growing university, MTSU is home of the nation’s only four-year bachelors program in Concrete Industry Management (CIM). Launched in 1996, this program provides a well-rounded, yet focused, education for management personnel in the concrete industry. This year, the total enrollment is estimated at 300 full-time students and MTSU’s 100th CIM student will graduate.
CIM is offered by the Engineering Technology and Industrial Studies Department in the College of Basic and Applied Sciences. This program attracts students from over 20 states, Beliz and Guatemala and its graduates are employed in over 17 states.
Until recently, the program was designed to prepare graduates for entry in areas such as the ready-mix industry, supplier industries, admixtures and chemicals, and concrete plant and manufacturing operations. This fall, the University’s CIM program is the first to offer a concentration with coursework focused on concrete contracting.
The new Concrete Contracting concentration in the CIM program is flexible in terms of its ability to accommodate students. Candidates can attend directly out of high school or they can obtain their degree while employed. Second year CIM students intern to gain supervised, practical work experience in their particular field of interest within the industry. CIM is working to accommodate nontraditional students who already have jobs but want to broaden their education. The first two years of concrete coursework will be available by correspondence by 2005. Students can attend a nearby community college or university and complete their general studies and business courses, along with the concrete correspondence coursework. This will allow working students to finish their degree with one or two years of full-time study on campus.
General required courses include English Literature, writing and research courses, history, math courses (ie algebra and trigonometry), sciences (i.e. geology and chemistry), economics and psychology. Requirements for the minor in business administration include accounting, management, marketing business law, and finance courses. Concrete coursework includes industry courses, blueprint reading, fundamentals of concrete, materials and methods, concrete problems, and other concrete-related courses.
The concrete contracting concentration adds site planning, layout and preparation, formwork design and computerized drafting, concrete project estimating, advanced concrete project management, design and construction issues, concrete contracting personnel management, field management and supervision.
There are numerous individuals whose vision and tireless effort created this Program but it would not have been a success without the insight and guidance of Austin Cheney, the program Director, Dr. Heather Brown (formerly Heather Sauter – but no relation to Ed), the first tenure-track faculty hired for the program, and Debbie Londre, Marketing & Recruiting Coordinator. Staff was added as the program grew and now includes Joe Fulks, a fulltime instructor, and two new tenuretrack faculty that began in fall, 2004.
The staff and steering committee for the CIM program have their sights set even higher. In the next two years, they plan to expand the program, using the MTSU success as a model, to one or two additional universities in the United States. The steering committee also supports the development of a Masters Degree program for Business Management, with an emphasis on concrete. Future plans also include creation of a separate department at MTSU and eventually construction of CIM’s own building (concrete of course).
The CIM program is also unique because it is supported, in great part, by private industry. Yearly tuition at MTSU is less than $4,000 for in-state and for 12 southeastern states in the Academic Common Market, and less than $12,000 for those who must pay out-of-state rates. To help offset the cost of attending college more than 15 scholarships are available each year and supported by companies and associations throughout the country. A support group called the CIM Patrons, which consists of representatives from industry manufacturers, concrete associations, and other interested parties, provides guidance, funding, and most importantly, job opportunities for graduates. The Program has the full support of the University from the college dean through the president and it receives high praise form the industry and graduates alike.
CIM offers an excellent opportunity for contractors to hire quality, well-rounded, and knowledgeable people to help run businesses. Educating those already employed by your company is also feasible with the remote learning option of the program. For more information, contact Austin Cheney at acheney@mtsu.edu. For general information about the program, visit www.mtsu.edu/~concrete.
Don’t Get Caught in the Middle
Bob Milford, Drewry Simmons Vornehm, LLP
Concrete Facts recently featured several articles regarding subcontractor agreements. In one of these articles, Doug Staebler of Custom Concrete Company, Inc. pointed out that both the large national builders and the smaller local builders are insisting on the use of subcontractor agreements. Builders utilize these agreements to shift as much liability as possible downstream to their subcontractors (including foundation subcontractors). The subcontractor needs to be aware that the builders’ agreements are generally not fair or reasonable. These agreements are prepared with the goal of limiting the builder’s liability and are one-sided in favor of the builders. In order to protect your business, you must attempt to negotiate with the builders to modify these agreements. In our practice, we have found that most builders, even the large national ones, will make some changes to their subcontractor agreements if they are approached properly. In a future article, Doug Staebler will provide detailed suggestions on the best approach to take with builders in order to make changes to their subcontractor agreements.
Although builders are very busy, most of them will make some effort to be fair if they are approached properly. In dealing with builders, you should focus on the major issues (they aren’t going to make a lot of changes). You should also try to get a face to face meeting. Most people are more agreeable to making changes in a meeting. On a telephone call or by e-mail, it is very easy to just say no.
After you have met with the builder and tried to limit your liability upstream, what do you do now? Do you have a subcontractor agreement with your subcontractors? Most foundation subcontractors subcontract at least part of their jobs including excavation work, backfill, dirt hauling, flat work, etc. You should have a subcontractor agreement with each of your subcontractors for the same reasons a builder wants to have a subcontractor agreement with you. This agreement should specify business-related terms (including the scope of their work, the term, price and payments, their duties and responsibilities, changes to the work and the timing of the work) and, also legal-related terms (including remedies, indemnity and insurance).
You want to shift as much liability downstream as possible to your subcontractors. At a minimum, you want them to at least be responsible for all of their work. They should be required to maintain insurance coverage and provide you with certificates of insurance to back up their work. Without limiting your liability upstream to the builder and without shifting as much liability as possible downstream to your subcontractors, you can get caught in the middle.
Bob Milford is a partner with the law firm of Drewry Simmons Vornehm, LLP in Indianapolis, Indiana. You can contact Bob at (317) 580-4848 or e-mail him at rmilford@drewrysimmons.com.
Subcontractor Agreements – The Indemnification Clause
Doug Staebler, Custom Concrete Company, Inc., Westfield, IN
You have just landed that big customer you’ve been working on for two years. Prices and scope of work have been agreed to and everyone is ready to begin. There is one last detail to take care of, the Subcontractor Agreement. At this point in the game, the last thing you want is to delay starting work by haggling over a contract. But before you start, it’s important to understand what is in the agreement, and the risks it may pose to your business.
We previously looked at why these agreements have become so prevalent and some of the administrative provisions and payment terms typically found. Most of these agreements are drafted heavily in favor of the builder, and provide little, if any protection for the subcontractor. In this article, we will look more closely at the indemnification clause, probably the most important section of the agreement.
What exactly does “indemnification” mean? To indemnify means to make whole, reimburse, or otherwise compensate for another’s loss. An example in our business is a builder who is sued by a homeowner for defective work on a home. The builder is forced to pay damages to the homeowner. If the damages were due to defective work of a subcontractor, the subcontractors will likely be required to “indemnify” the builder for its losses. If reasonably worded, such provisions are appropriate and acceptable. After all, we expect to be held responsible for defects in our work. The problems arise in the way most agreements are drafted.
Indemnification provisions will often use terminology like “claims arising from the work” or “claims related to the work”. This could serve to make the subcontractor liable for claims even if there was nothing wrong the subcontractor’s work. For example, a subcontractor could be held liable for mold claims that are related to the basement, even if all work was performed properly, and according to building codes. All that would be necessary is for a builder to demonstrate that the claim is related to the basement.
Standard AIA contracts use additional language limiting the subcontractors responsibility to indemnify to claims and damages “but only to the extent caused by the negligent acts or omissions of the Subcontractor…” This language is far better because it requires that negligence or omissions be found before the subcontractor is liable, instead of simply being related to the work of the subcontractor.
Carefully review AIA contacts. Although AIA documents are generally considered to be relatively balanced, they are often modified by the builder or developer in exhibits or addendums.
Another important consideration is the issue of proportional liability. In most cases, problems are caused by a number of factors. Often, the builder, architect and subcontractor all bear a share of the responsibility. Unfortunately, many indemnification clauses provide that the subcontractor must indemnify the builder, if the claim is due in part to actions of the builder. A better solution is to make responsibility proportional. If the subcontractor is deemed to be 40% at fault, then the subcontractor is responsible for 40% of the damages.
The impact of these losses can be increased substantially in class action type situations. Zaring (Cincinnati) and Trinity Homes/Beazer (Indianapolis) are both examples of builders that became embroiled with a large number of mold related claims, involving hundreds of homes. In cases like these, plaintiff attorneys will seek to recover from every source possible, including subcontractors. These losses could easily exceed the coverage limits of your general liability insurance policy. Additionally, most insurance policies have excluded mold claims from policies, leaving subcontractors uninsured for mold related claims.
The increased use of indemnification is a direct result of the explosion of liability claims by homeowners against homebuilders. These claims pose significant problems to builders. Insurance has become increasingly difficult to obtain for builders. Their response has been to push as much of this exposure down to the subcontractor as possible. Since we are supplying most of the labor and materials for our work, we will be the final stop on this trail of liability claims. Our long-term survival may depend on our ability to manage this exposure to liability claims. Insurance will be part of the solutions, but these claims can exceed our coverage limits, and if claims losses become excessive, our insurance coverage may be jeopardized.
As with other important contract provisions, it is often possible to negotiate changes with builders, even large national builders. In the next article, we will look at the best strategies for negotiation changes to subcontractor agreements.
Putzmeister America Promotes Bill Dwyer to National Sales Manager
Bill Dwyer was recently promoted to the new role of National Sales Manager. He will now directly supervise all national field and office sales personnel who sell the company’s comprehensive line-up of products. The Putzmeister equipment range includes new and pre-owned concrete boom pumps, separate placing booms, belt conveyers, trailer pumps and mortar machines. In addition, Dwyer manages the overall sales and operational efforts of the company’s Pre-owned and Refurbishment Center located at the Sturtevant, Wis. Facility. Dwyer’s construction background includes over four years of sales experience at Rotec Industries prior to Putzmeister’s acquisition of Rotec belt conveyers – later renamed Telebelt®. After joining Putzmeister America, he spent the past eight years involved with sales. With his new role, Dwyer’s office is based at the main Putzmeister facility in Sturtevant.
Putzmeister America is a world leading heavy equipment manufacturer that specializes in concrete and material placing equipment. Putzmeister offers a complete line of truck-mounted concrete boom pumps, separate placing booms, truck-mounted telescopic conveyers, and trailermounted concrete pumps. In addition, the company provides a wide range of mortar, grout, shotcrete, plaster and fireproofing pumps and mixers, industrial pumps and tunneling equipment.
The company achieved international ISO 9001 quality certification in 1998 and successfully completed the transition audit to the recently revised and more stringent ISO 9001:2000 standards.
