muca in the community...fall 2014 | 3 from the president with a weather-delayed start to the 2014...

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Fall 2014 | 1 1000 Westgate Drive, Ste 252 | St. Paul, MN 55114 | www.muca.org THE MINNESOTA UTILITY CONTRACTORS ASSOCIATION Fall 2014 MUCA in the Community Day of the Dozers a huge success! Also inside: Member Spotlights Purchase Orders: What You Don’t Know When the Street Settles: Who Pays? And so much more! story on page 14

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Page 1: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

Fall 2014 | 1

1000 Westgate Drive, Ste 252 | St. Paul, MN 55114 | www.muca.org

THE MINNESOTA UTILITY CONTRACTORS ASSOCIATION Fall 2014

MUCA in the CommunityDay of the Dozers

a huge success!

Also inside:Member Spotlights

Purchase Orders: What You Don’t Know

When the Street Settles: Who Pays?

And so much more!

story on page 14

Page 2: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

2 | MUCA Underground Press

Visit Hydro-Klean.comto view our project library and learn more about the valuable

services we have to offer.ÄÄ Sewer Cleaning

ÄÄ Digital Video Inspection

ÄÄ CIPP and Rehab Services

ÄÄ No-Dig Pipe Repair

Services include:

Four Midwest locations to Serve You!1.855.84KLEAN

Experience the difference. One call. One service provider. One experience.Providing municipal services for water and wastewater utilities for over 30 years.

ÄÄ Filter Media Services

ÄÄ Hydroexcavating

ÄÄ Landfill Leachate Services

Page 3: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

Fall 2014 | 3

FrOM the PreSiDentWith a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in this industry, business challenges abound and MUCA, for its part, continues to help us solve the problems they present.

Ironically, the “Responsible Contractor Law” is probably one of the most irresponsible laws passed in a long time. MUCA held several meetings, wrote a number of letters to legislators, and educated its members through webinars, posting online articles, and publishing a cover story this past spring, to highlight the potential ramifications and impairment this law may have on our businesses. Stay tuned to MUCA as the law goes into effect on January 1, 2015.

We’ve seen an increase in membership, an increase in training, and more online programs to add value for your dues investment. Staying active in MUCA is the key. I participated in the Day at the Capitol, the D.C. Fly-in, and the Jeff Hanson Memorial Last Ditch Open, and even got to throw out the first pitch at the Twins game. For those of us involved and active, this organization really does offer an opportunity to connect with vendors, have our voice heard, and provide valuable industry information and resources for our businesses.

MUCA continues to remain dedicated to the underground utility construction industry. This year we launched a new effort to help educate the public, and hopefully inspire future underground construction workers and owners, through our Day of the Dozers event. The added benefit is that 100% of the proceeds are donated to Children’s Hospitals and Clinics. Check out the cover story.

It’s been a pleasure serving MUCA this year, and I look forward to remaining engaged and active for years to come. Thank you for your continued support and dedication to MUCA. I look forward to seeing you at our Annual Meeting.

Sincerely,

Lee SunramSunram ConstructionCorcoran, MN

2014 BOArD OF DirectOrSPresidentLee SunramSunram Construction, Inc.

Past President charlie WilsonMinnesota Utilities & Excavating

DirectorsMatt BrentesonBrenteson Companies, Inc.

tim culpChad Tiling

Brad ForesterAmerican Cast Iron Pipe

chris GlassingAmerican Cast Iron Pipe

Mark hinesHD Supply

The Underground Press is published twice a year by the Minnesota Utility Contractors Association1000 Westgate Drive, Suite 252St. Paul, MN 55114 Executive Director: Stephanie Menning [email protected]

Government Relations: Nick de Julio, Ewald Consulting

Art Director: Nicki Brunner

Questions: Call (651) 735-3908

Visit www.muca.org for more information

In the Pipeline

Fall 2014 | 3

Vice Presidenttrish carlsonForest Lake Contracting

Secretary/treasurerMike LeahySt. Paul Utilities

Mark MagneyMagney Construction Co.

Bill QuintusEss Brothers & Sons, Inc.

Dean ravelingRaveling Companies, LLC

Mike StordahlMinnesota Pipe & Equipment

Brad WorrellHancock Concrete

Visit Hydro-Klean.comto view our project library and learn more about the valuable

services we have to offer.ÄÄ Sewer Cleaning

ÄÄ Digital Video Inspection

ÄÄ CIPP and Rehab Services

ÄÄ No-Dig Pipe Repair

Services include:

Four Midwest locations to Serve You!1.855.84KLEAN

Experience the difference. One call. One service provider. One experience.Providing municipal services for water and wastewater utilities for over 30 years.

ÄÄ Filter Media Services

ÄÄ Hydroexcavating

ÄÄ Landfill Leachate Services

Page 4: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

4 | MUCA Underground Press

Dig In

cOntentS

From the President ...............................................................................3

The Jeff Hanson Memorial Gets Majestic .............................................6

A Day at Target Field ............................................................................8

3rd Annual MUCA Shoot-Out Classic ...................................................8

Purchase Orders: What You Don’t Know ............................................ 11

Day of the Dozers a Huge Success ....................................................14

When the Street Settles, Who Should Pay for the Cost to Repair? ....16

Member Spotlight: Lametti & Sons ............................................................. 18

Member Spotlight: Minnesota Pipe & Equipment ...............................21

Site Visits ............................................................................................23

Meet the Lobbyist: Nick de Julio .........................................................25

2015 MUCA Scholarship Opportunity .................................................25

2015 MUCA Training Courses ............................................................25

Member Application ............................................................................27

MUcA BeLieVeS...Our MissionTo promote the underground utility industry by providing safety training, continuing education, scholarships and legislative relations.

Our VisionTo be the best Association Value for our members.

Our Guiding PrinciplesSafety, An Educated Workforce, A Unified Voice.

Our ValuesHonest Communications, Transparent Leadership, Authentic Engagement.

cOnnect AnD enGAGeApril 2015MUCA Day at the Capitol

May 23, 2015Undie 500

June 25, 2015Jeff Hanson Memorial Last Ditch Open

August 2015Day at St. Paul Saints

September 2015 Day of the Dozers

October 2, 2015MUCA Classic Clay Shoot

november 19, 2015MUCA Annual Meeting

“The MUCA Minute” is a short video that updates you on current trends, legislative issues and MUCA events – in 60 seconds or less! We will publish these monthly as a quick “catch up” for all you busy folks out there.

Watch all MUcA Minutes at muca.org/minute.

Get inDUStrY neWSin 60 seconds or less

Let’S Get SOciAL!Join MUcA’s Linkedin Group

www.linkedin.com/groups

Search “Minnesota Utility Contractors” and simply click to join.

Topics include legislative issues, construction industry news, calls to action, MUCA event updates, and member recognition. Share an article, pose a question, and increase your online network by

joining MUCA’s LinkedIn Group.

Stay informed, join the discussion, and add your perspective!

Page 5: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

Fall 2014 | 5

800 742 7246 rainforrent.com

®

Elk River, MN763 323 2085

Project delays can cripple a business. With decades of experience, Rain for Rent has developed specialized construction services to become a contractor’s partner. We get things done right the first time, while protecting our partners from costly fines and delays.

BUILD WITHCONFIDENCE

Today, the largest writer of workers’ compensation insurance for construction related industries in Minnesota is The Builders Group (TBG). TBG specializes in providing the specific services your business needs to grow your bottom line. The Minnesota Utility Contractors Association (MUCA) promotes TBG as a member benefit designed to serve the needs of your business! To find out how TBG can benefit your bottom line call your agent or contact TBG to find an agent near you and discover how TBG can provide your business with the best workers’ compensation program in MN.

The Builders Group…Built for Your Business!

Join your peers in the only workers’ comp program designed and built by people like you!

Page 6: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

6 | MUCA Underground Press

The Jeff Hanson Memorial Gets MajesticOver 200 golfers and sponsors gathered for the 34th Annual Jeff Hanson Memorial Last Ditch Open at its new location, the Majestic Oaks Golf Course in Ham Lake, Minnesota.

New This Year: besides the change in venue, we also had a change in format, a lower cost per golfer, an increased value for sponsors, and a few new opportunities to connect and engage. The new tournament format is a 36-hole event. All golfers arrived in the morning and the festivities started with registration and everyone gathering at the Bloody Mary bar, sponsored by Raveling Companies.

Golfers were split evenly to play one round of 18 holes; one set playing the Signature Course and the other playing the Crossroads Course.

As usual, there was a ton of fabulous food from the sponsors on each course. Congratulations to Road Machinery & Supplies and Ziegler Cat for winning the Best Food Contest! They each receive a complimentary tent sponsorship for next year’s event.

Thanks also to RDO and Cretex, for hosting special events at their tents to raise $180 and $250 respectively for the scholarship fund!

New MUCA Member M.A. Apparel/Jager Outdoors got creative with their tent sponsorship by hosting a duck dummy shooting contest, complete with Jager retrieving the ducks. That was one hot dog by the end of the day!

Thanks to everyone for participating in this fantastic event! We look forward to seeing you next June!

thAnKS tO OUr 2014 SPOnSOrSCart Sponsor The Builders GroupDriving Range PrinscoBloody Mary Bar Raveling Companies, LLC

SiGnAtUre cOUrSe SPOnSOrS1st Tee Nuss Truck & Equipment3rd Tee M.A. Apparel & Promotions4th Tee United Rentals Trench Safety5th Tee ADS/StormTech10th Tee Ziegler CAT14th Tee Northern Dewatering17th Tee Eull’s Manufacturing Co. Inc18th Tee Ferguson WaterWorks

crOSSrOADS cOUrSe SPOnSOrS1st Tee Cretex Concrete Products Midwest, Inc.1st Green Hayden-Murphy Equipment Co2nd Tee American Pump Company3rd Tee Empire Bucket7th Tee United Rentals Trench Safety10th Tee RDO Equipment17th Tee Gary Carlson Equipment Company18th Tee Titan Machinery18th Green Road Machinery & Supplies

See all golf photos online at www.muca.org

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Fall 2014 | 7

cOnGrAtULAtiOnS tO ALL the WinnerS!SiGnAtUre cOUrSe reSULtS:Closest to the Pin – Hole #12 Jeff Bistodeau, RMSLongest Drive – Hole #6 Michael Christianson, Park ConstructionClosest to the Line – Hole #3 Peter Nordang, Magney ConstructionLongest Putt – Hole #18 Brett Mathiowetz, Mathiowetz Construction

SiGnAtUre tOUrnAMent reSULtS:1st Place team (Score 60) 2nd Place team (Score 61)Dave Ostlie, Kramer Mining & Materials Andy Leach, Ziegler CatTim Lynn, FPI Paving Dave Carothers, Ziegler CatAntony Koop, FPI Paving Matt Ducette, Ziegler CatRick Pollock, Ed Kramer & Sons Brad Sewell, Ziegler Cat

3rd Place team (Score 63) 4th Place team (Score 63)Todd Stelmacher, Visu Sewer Craig Remick, Cobb StreckerBill Johnson, Foth Brian Mathiowetz, Mathiowetz ConstructionAdam Shelton, Foth Tim Rahe, MR PavingMike Tubbs, McNamara Joe Eichten, Liberty Surety

crOSSrOADS cOUrSe reSULtS:Closest to the Pin – Hole #8 Jason Theisen, Gridor ConstructionLongest Drive – Hole #2 David Knaeble, Pierce PiniClosest to the Line – Hole #15 Jesse Roush, VeitLongest Putt – Hole #18 Matt Mikya

crOSSrOADS tOUrnAMent reSULtS:1st Place team (Score 59) 2nd Place team (Score 62)Erik Mueller, Travelers Dean Raveling, Raveling CompaniesNick Hochban, Travelers Bryan Raveling, Raveling CompaniesCraig Olmstead, Willis Dave Anderson, Raveling CompaniesSean McBride, Willis Shane Shultz, Raveling Companies

3rd Place team (Score 62) 4th Place team (Score 62)Rick Kiemele, HD Supply David Falldorf, Michels CorpDave Rubin, KHC Construction Brian Bruley, CenterPoint EnergyGary Disch, Magney Construction Joe Vortherms, CenterPoint EnergyKim Christiansen, KHC Construction Bob Osborn, Michels Corp

cOnGrAtULAtiOnS tO the rAFFLe WinnerS!Trent Ess – Xbox OneRyan Miller – iPad MiniPhil Major – DriverJeff Blakely – Round of Golf for 4 with Carts

• American Cast Iron Pipe Company• Bearence Management Group• Cobb Strecker Dunphy & Zimmermann, Inc.• Ellingson Companies• Fabyanske, Westra, Hart & Thomson, PA• Forest Lake Contracting, Inc.• Kuechle Underground, Inc.• Magney Construction, Inc.• Minnesota Utilities & Excavating• Neenah Foundry• RDO Equipment• Road Machinery & Supplies• The Builders Group• Visu-Sewer, Inc.

DOOr PriZe DOnOrS

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8 | MUCA Underground Press

The Minnesota Utility Contractors Association presents

Nearly 300 hearty baseball fans from seven MUCA member companies joined us as the Twins faced the Kansas City Royals on Sunday, August 17.

Thanks to all the MUCA Members and Twins fans who braved the weather with us! Next year, we’ll be switching our baseball event to see the St. Paul Saints in their new stadium, along with the ability to gather with friends and family for some pre-game tailgating fun! Stay tuned.

MUCA had so many participants this year, we couldn’t fit them all in the parking lot! With over 60 participants and 14 teams, this year’s Clay Shoot Classic was a great success.

Of course, the best reason for gathering, besides enjoying a fun activity, is to connect with fellow MUCA Members. Whether it’s a conversation on the course, or relaxing with a game of Hammerschlagen afterward, this event is becoming a favorite.

Pre-game festivities included a mascot softball game in which Babe the Blue Ox hampered Goldie Gopher’s efforts to reach home plate.

Lee Sunram, Sunram Construction, and President of MUCA’s Board of Directors, got the call to throw out the first pitch. The perks of throwing the first pitch include a Twins jersey, a baseball and a bear hug.

Again this year, Executive Director Menning was there to hand out goodies for MUCA fans, including Homer Hankies, MUCA/TWINS Fans, and Twins & All Star Game folders and pencils to start the school year off right.

After everyone loaded up with ammo and ear protection, it was off to the assigned starting stations.

There was a good variety of challenges with each station, and of course the pressure of shooting in a competition adds to it.

Congratulations to the winning team from Northern Dewatering!

MUCA’s SOGGY,DAY AT TARGET FIELD

(but fun)

Clay Shoot ClassicAims to PleasE

Full event photo galleries are available at www.muca.org

Page 9: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

Gary Carlson is Going Back to His Roseville Roots!

Visit Us At Our New 2nd, Location!

Roseville Blaine1380 W County Rd C 10720 Mankato Street NERoseville, MN 55113 Blaine, MN 55449 763.792.9123

Two great locations with 1 number

●Solutions●Rentals●Sales●Parts●Service

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Page 11: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

Fall 2014 | 11

There may be trouble brewing in your everyday purchase of equipment and materials. You just don’t know it yet. That construction contract you signed last week bound you to a scope of work, specifications, a schedule and a two year warranty. When you turn around to buy the materials you need to perform the contract does your supplier have to meet the letter of the specs, or the general contractor’s schedule or even the two year warranty? Maybe not, and what happens to you then?

Welcome to the world of purchase orders. Under a set of statutes called the Uniform Commercial Code (usually called the UCC) the states have created a separate set of rules for contracts for the sale of “goods.” Those rules are in Article 2 of the UCC and they are more or less the same from one state to the next. This is not some new-fangled idea. You have been living with the UCC every day for decades and just didn’t realize how important it could be. The UCC rules were developed to more realistically reflect how business actually operates in rapid fire from day to day. The drafters of the UCC thought it should not take a 10 page contract to buy a truckload of iron pipe. Those UCC rules have worked successfully to simplify contracts for half a century in many ways, but in the construction world they sometimes lead to surprises.

Goods are things you buy that are moveable at the point when they are sold—like pipe, valves, controls and your portable generator. Goods include all the common materials and equipment you need to buy to do your work. To buy them, you normally use a simplified contract we will call a purchase order. Purchase orders are usually a simpler and quicker way to buy this material instead of a long form contract—like that construction contract. The other side of that equation is that your purchase order may have terms that do not correspond to your obligations under your construction contract. That purchase order can also be affected by terms that are not even in the small print on the back side. And that is why we will highlight a few of those twists and potential surprises so that you can avoid an expensive bite.

Let’s start with a very basic but very important distinction. Your construction contract and your purchase order are formed under different sets of rules. That is why they may not line up. For simplicity we can say that the construction contract

is the top-down model. The owner’s contract sets the terms and requirements that flow down to the subcontractors. The purchase order model is bottom-up. The purchase order contract terms flow largely from the seller of the goods and the UCC “gap filler” provisions. These “gap fillers” exist to cover the issues that your simplified purchase order did not cover. These two different sets of contract rules often collide where the contractor or subcontractor goes to buy materials or equipment.

For example: the supplier that sold you the valves you plan to use for your job sold you the pre-designed product they already make—not necessarily exactly the product the engineer had in mind when she wrote the spec. Moreover, if the product does not come right off the shelf there is probably a production cycle to get it. If you need the product Tuesday at 3 PM it may simply not be available then. Better look at your purchase order! If the supplier did not commit to delivery by 3 PM Tuesday that delivery might be 6 weeks from now. Now look at the liquidated damages clause in your contract.

Whose problem is this? The supplier did not sign your construction contract and may not be bound by your schedule or the liquidated damages clause unless they agreed to be. You are potentially caught between two contracts that do not quite line up and you may not be able to shift the problem to the supplier. The UCC says unless you agree otherwise, the time for delivering your products is a “reasonable time under the circumstances.” This is one of those terms that might not even be in the small print on your purchase order, but it is part of the UCC in recognition of the simple fact that not every product is instantly available at all times. A production cycle may be just one of those “circumstances.” Make sure that you have a clear delivery time in your purchase order if that is going to be critical to your contract and don’t wait until the last minute to order materials which are not “off the shelf” and avoid an expensive surprise.

We will be back with more on the UCC and purchase orders, so stay tuned.

Purchase Orders:What You don’t know

by Jim Sanders, Hammargren & Meyer, PA952-844-9033 | [email protected]

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12 | MUCA Underground Press

Page 13: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

Fall 2014 | 13

Page 14: MUCA in the Community...Fall 2014 | 3 FrOM the PreSiDent With a weather-delayed start to the 2014 construction season, it seems like we’re busier now than ever. As is typical in

14 | MUCA Underground Press

MUCA Community

On Saturday, September 13, 2014 over 1,000 kids from across the Twin Cities got to experience construction first-hand through MUCA’s Day of the Dozers event. The one-of-a-kind, family-fun event was held at ERX Motor Park in Elk River and surpassed the $10,000 donation goal by raising $14,945 to benefit Children’s Hospitals and Clinics.

Widely supported by the construction industry and neighboring community businesses, the Day of the Dozers provides a unique opportunity for young children to sit, ride, and even operate big equipment with a trained operator.

“It’s a blessing to have help from folks like ERX Motor Park, Sportech Inc., Plaisted Companies, and so many more sponsors, volunteers and contributors” stated Stephanie Menning, Executive Director of MUCA. “There’s a LOT of people to thank for this, especially David Harn (formerly with Cat Paving in Elk River, now with Progress Rail in Missouri) for starting this event last year and helping us continue its great mission.”

The Day of the Dozers turns a dirt race track into four areas of varying construction equipment. For everyone’s safety, the operators and the volunteers ensure a safe escort of children to and from the machines. Gate one features backhoes (stationary) and pavers (mobile); Gate two is reserved for the large dump trucks, articulated trucks and pan scrapers that make a loop around a portion of the track. Gate three serves the middle and the front of the track with the big excavators doing what they do best, moving large amounts of earth. Gate four featured bull dozers and an excavator with a thumb that made stacking tractor tires a fun exercise.

Additional activities included a static display with varying trucks, cranes, and construction equipment, as well as an open sand box and culverts to play in. New this year was a series of displays and exercises for the kids and their families promoting safety around utilities, locating pipelines and getting out the “call before you dig” message.

MUcA would like to thank the following companies for their contributions in making Day of the Dozers such a fantastic success.

in the

Day of the dozers benefit a huge success

All proceeds benefitting

SiLVer SPOnSOrS

BrOnZe SPOnSOr

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Fall 2014 | 15

SPeciAL thAnKS tO

Day of the Dozers photos are available at www.dayofthedozers.com

• CenterPoint Energy• Central Lakes College• Connexus Energy• Curb Side Dining• ePromos Promotional

Products, Inc.• Fairchild JCB Construction

Equipment• Franklin Outdoor

Advertising

• Holiday Inn of Otsego• Infrastructure Resources• Land Equipment• LubeTech• New Horizon Academy• Nuss Truck & Equipment• Xcel Energy• Zimmerman Football Team

Sincerely

Sincerely

Missy O.

“I just wanted to thank you for sponsoring the Day of the Dozers in Elk River last weekend. It was a dream come true for my boys. My three year old has been reading ‘The Big Truck Book’ every night for almost a year. Last night when we read it, he told me all about sitting in the dozer and pushing tires. It was a big deal for him – and the kindness and security that your volunteers showed was a big deal to me. Who would have thought that I would have let my three year old walk anywhere near that big machinery? And not only allow, but feel comfortable doing so. THANK YOU.”

emily M.

“I just wanted to send a quick thank-you out for putting on the Day of the Dozers event. I took my little boy (4 ½) there and he had a great time! I even had a good time, which was a VERY pleasant surprise. So happy a co-worker forwarded the invite or I would have missed the opportunity. Please pass on the thank-you to all those involved, and many kudos to the operators for participating. They did a GREAT JOB!!!”

PArtner OrGAniZAtiOnS

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16 | MUCA Underground Press

An all-too common problem is street settlement. After the underground work is completed, and the area is paved over, settlement occurs. The settlement normally shows up after the first winter and spring as a consequence of the freeze/thaw process. When settlement occurs, we know what the normal response is: the engineer requests that the contractor correct its defective work. And what does the contractor normally do in response? Pay to repair the problem and take on the risk that it will not settle any further. And if it does settle further, the contractor will then typically repair the problem again. While this is the industry practice, it need not be. WHAT SHOULD BE THE INDUSTRY PRACTICE IS THAT WHEN STREETS SETTLE, THE OWNER PAYS FOR THE COST TO REPAIR IT, NOT THE CONTRACTOR. Let me explain why.

Let’s start by focusing on the biggest reason why contractors normally pay for the cost to repair settlement: BECAUSE CONTRACTORS ARE IN THE HABIT OF PAYING FOR MOST MISTAKES THAT ENGINEERS MAKE. When a contractor makes a mistake, who pays? The contractor pays. When an engineer makes a mistake, who pays? Too often, the contractor pays. Is that fair? Of course not. Why does that occur then? Well, part of the reason is that contractors are simply used to doing that: it has unfortunately become the industry practice. Contractors are made to feel if they are not

paying for the engineer’s mistake, they are not being a team player. As absurd as this sounds, we know that contractors and engineers both largely feel this way. Given how tight the margins are, contractors cannot afford the financial impact to continue this practice. In addition, because contractors do not carry Errors and Omissions liability insurance, they also cannot afford the related risk. But unless and until contractors believe that engineers, like contractors, should be responsible for the financial impact of their mistakes, contractors will continue to pay for everyone’s mistakes.

If you still believe that a good relationship with engineers requires donating to their charity, paying for their mistakes, then read no further. If, on the other hand, this is making sense, then I can provide you a roadmap on having owners pay for the cost of street settlement. The key is looking closely at why street settlement occurs and what the law says about who should be responsible for this.

WhY DOeS Street SettLeMent OccUr?

Well, we know what the engineer says: defective construction. But is that really true? For most utility work, the construction requirements are simple: after the trench is excavated and the pipe placed, the remaining work is to backfill. The contract

When the Street Settles,Who should pay for the cost to repair?

by Thomas R. Olson, Olson Construction Law, Inc.651-298-9884 | [email protected]

Before construction is completed After construction is completed The center depression is a sign of settling

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Fall 2014 | 17

requirements for backfill are equally simple: layer thickness, moisture and density. If you meet these three requirements, you have backfilled per the contract. The material should be properly compacted if it meets either the Specified Density Method (which, by definition, specifies both moisture and compaction requirements) or the Quality Compaction Method (which relies upon the inspector to determine when there is no evidence of further consolidation). If the inspector determines that you have met these requirements, you have performed the work as the contract requires.

But how can that be the case when the area paved over then settles? Well, the answer is actually simple: the project was under-designed. The reason for that is normally the failure of the engineer to either control the moisture (e.g. geo-grid fabric) or keep it out (e.g. wick drains)1. Whether and to what extent either of these things are done is, outside of proper backfilling, solely the responsibility of the engineer. As a consequence, if the contractor meets the applicable backfill requirements, the project owner (through its engineer) should be legally responsible if the street subsequently settles. This responsibility is defined at law as the Spearin doctrine, and also known as the implied warranty of design. If the contractor is required to perform according to the owner’s design, the owner has given an implied warranty that, if the contractor follows the design, the resulting work will be acceptable. The Spearin doctrine is nothing new – it was established in 1918 by the United States Supreme Court. And, this doctrine/implied warranty has the same legal effect as the written contract language.

So next time the street settles on your project, before you repair it at your own expense, ask the engineer to identify what part of the contract you failed to meet. If you have met the applicable backfill requirements, chances are the settlement is the result of a defective design, not defective construction.

1 For large embankment construction, what the engineer can and should do is safeguard against excessive settlement. To accomplish this, the engineer should design the project to require the use of piezometers, settlement plates and/or inclinometers. Of these three, piezometers are the most important: these are properly used to ensure that the next lift is not placed until all excess pore water pressure is dissipated in the foundation soils, and therefore the requisite strength is obtained through consolidation. In other words, settlement is both to be expected and necessary for embankment stability, provided it is not excessive (i.e. too much settlement occurs too quickly).

We’ve been partnering with contractors to powerfully manage changes

on public construction projects for20 years.

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18 | MUCA Underground Press

Lametti & Sons has been incorporated since 1953 and has been a MUcA Member since 2000. they have a broad range of experience including sanitary, storm, waste and water pipelines, as well as civil construction, tunnels and trenchless renewal. this job highlights their capabilities on a unique and interesting project in transforming a cliff in St. Paul.

This metering station on Shepard Road was in need of protection and Lametti & Sons were selected to alter the surrounding cliff to ensure the safety of this viable structure for years to come.

Installing a retaining wall to hold back Mother Nature is no small task. Here, Lametti’s crew works on tightening up the bolts and braces that will secure the form and allow the concrete to cure.

Once set, you can see how well the wall will protect the structure, while still allowing natural drainage to occur. Thanks to Mark Jay and the team at Lametti for sharing a job well done!

Out and About

MEMBER SPOTLIGHT:

Lametti & Sons

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When it comes to choosing pipe, you get what you pay for. And with ductile iron, what you get is stronger, more dependable material that withstands the rigors of installation and operation better than plastics. Just like everything else we do, AMERICAN ductile iron pipe is made the right way. Because doing things the right way is the AMERICAN way.

D U C T I L E I R O N P I P E

F L O W C O N T R O L

I N T E R N A T I O N A L

S P I R A L W E L D P I P E

S T E E L P I P E

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A M E R I C A N - U S A . C O M

SURESURESUREPLASTIC PIPE ISPLASTIC PIPE ISPLASTIC PIPE IS

CHEAPER.CHEAPER.CHEAPER.BUT IT’S STILL BUT IT’S STILL BUT IT’S STILL

PLASTIC.PLASTIC.PLASTIC.

GOLDFLO WT® ECOFLO®100 INTEGRITY® STORMWATER UNDERGROUND FITTINGS QUALITY DETENTION

For over 35 years, Prinsco has been developing more than just plastic pipe. We’ve been developing a reputation that’s founded on one simple thing: INTEGRITY. It’s how we design our products, it’s how we treat our customers, it’s how we do business.

Look for our GOLD STRIPE of quality to ensure your pipe has been engineered with integrity.

water management solutions

800.992.1725 | prinsco.com

US: 9 plants & 6 yards Canada: Winkler, Manitoba & Taber, Alberta

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20 | MUCA Underground Press

MN PIPE & EQUIPMENT

FARMINGTON 5145 211th St. W.

Farmington, MN 55024Ph. 651-463-6090

Toll Free. 800-325-5636

ROCHESTER 2913 County Rd. 16 S.W.

Rochester, MN 55902Ph. 507-285-5389

Toll Free. 877-207-6191

WWW.MINNESOTAPIPE.COM

For 25 YEARS your LOCALLY OWNED

supplier has had the inventory needed to provide the service

you require25 Yea

rs

1989-2014

New Facility Opening in St. Cloud, March 2015

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congratulations on 25 Years! Minnesota Pipe & equipment was originally founded in 1989. tom Stordahl (pictured right) is the founder and ceO of the waterworks distributor, located in Farmington with a branch in rochester. in addition to their home state, Minnesota Pipe also serves Wisconsin, north and South Dakota and iowa.

Working with contractors, engineers, utilities and city managers requires establishing good relationships. As you can see, Tom’s son Mike (2nd from the right in the center photo), is a pro at ensuring his customers are happy.

The project this team is working on is a two-year adventure in updating the infrastructure in Excelsior, MN. Small, winding roads that do not leave much room for cars (much less construction equipment and personnel) are definitely a constraint. Keep up the good work!

Out and About

Tom Stordahl

MEMBER SPOTLIGHT:

Minnesota Pipe & Equipment

25 yearscelebrating

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Iowa Cedar Rapids 319-363-9655 319-363-2075

Sioux City 712-252-0538 712-252-5064

Des Moines 515-282-0404 515-282-4876

Illinois Milan 309-787-1742 309-787-2497

Michigan Negaunee 906-475-6488 906-475-6455

Minnesota Virginia 218-741-9011 218-741-9465

Duluth 218-727-8611 218-727-3340

Savage 952-895-9595 952-895-9564

www.rmsequipment.com

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On the Job

BrenteSOn cOMPAnieS MUCA Member Brenteson Companies worked with Valley Rich on a critical project for Delta Airlines. This was a water line valve inserted under full line pressure. It was cool to watch this being installed without disruption to the customer – perfect!

Precision is required in closely measuring, leveling and securing before the cutting begins. After the drill gets secured, the cutting begins.

Once the cutting is complete, they’re ready to insert the valve – all without disrupting the water service. Kudos to Brenteson and Valley-Rich for a job well done!

Left to right: Joe Miller, Paul Carlson, Gary Carlson, Greg Carlson

interStAte cOMPAnieSNew MUCA Member Interstate Companies worked with the City of Columbia Heights on a replacement project this past spring.

Erik Paulson with Interstate chats with one of the City representatives on site.

As always, great care is taken in working around infrastructure and team communication is critical. Good job, Interstate Companies!

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24 | MUCA Underground Press

On the Job

MicheLS cOrP. Michels Corp. has been seen all over south Minneapolis, and with good reason. They are on a large scale gas pipe replacement project for CenterPoint Energy. Here, the crew is prepping for inserting a tee and performing pipe fusion.

…. And while this crew is busy, just around the corner is another Michels Corp. crew working on a replacement and tie-in to the main.

Just another busy day for the Michels Corp. team! Thanks for all the good work you do.

rDO eQUiPMent RDO Equipment is expanding its Burnsville facilities and increasing its footprint in a big way.

In addition to the remodeled offices, a training center, a showroom, a customer counter and a parts department, RDO also has a huge new bay for truck maintenance.

It’s all part of the master plan. Thanks to Scott Weness for taking the time to show me around. I’m looking forward to the grand re-opening!

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MUCA is served by Ewald Consulting, a professional association management firm. Nick joined Ewald Consulting in 2007 as a Government and Public Relations assistant, providing important leadership and support to the department as well as directly serving government relations clients. He graduated from the University of Minnesota-Duluth with a M.A. in Advocacy and Political Leadership, and a B.A. in Political Science. Before joining Ewald Consulting, Nick worked at the Minnesota House of Representatives as a legislative assistant and has worked on various political campaigns.

Q. What do you love about government relations?A. One of the main reasons that I love working in government relations is that no two days are alike and there are multiple ways to achieve success. Working at the Capitol, you quickly learn that there is a unique dynamic to state government and within that, you come across paths to victory.

Q. What is your favorite city?A. I would have to say Munich, Germany, is one of my most favorite cities. It has a combination of culture, city life, and green space all throughout the city while moving at a calm and relaxing pace. Plus, a number of beer gardens are conveniently placed around the city!

Q. What is the best professional advice you ever received?A. What got you here won’t get you there. You need to keep pushing yourself to adapt to changes.

Q. What do you like to do when you are not working?A. When I am not working, I like to spend time outdoors. No matter the season, I can always find something to do. If not outdoors, you can find me in the kitchen cooking or creating something to eat or drink.

Meet the Lobbyist:Nick De Julio

2015 MUCAScholarship OPPORTUNITYThe 2015 Scholarship Program is open to MUCA members and their employees. If you have a child graduating from high school this spring who will be enrolling in post-secondary education, vocational school or trade school in the fall of 2015, he or she is eligible to apply. Criteria used will be students entering MUCA-related fields or trades, scholastic and activities as well as financial need.

Apply at www.muca.org/scholarships.

2015 MUCATraining Courses

The 2015 Training Course agenda has been released and registration is available online. Get signed up for 2015 Pipelayers, Competent Person, and Erosion Control courses today!

register at www.muca.org/training.

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MINNESOTA 800.352.2812Bemidji • Brainerd • Buhl • Columbus • Crookston • Duluth • Fergus Falls Jackson • Mankato • Marshall • Minneapolis • Rochester • Shakopee • St. Cloud

IOWA 800.342.7002Altoona • Atlantic • Fort Dodge • Mason City • Postville •Sheldon • Sioux City

GAME CHANGER.

THE CAT® 336E HYBRID HYDRAULIC EXCAVATOR The Cat® 336E H is a “game changer” and the most revolutionary excavator to come to market in decades.

25% Less Fuel • 50% More Efficient • 100% Pure Power

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Minnesota Utility Contractors Association

MEMBER APPLICATION1000 Westgate Drive, Suite 252 | St. Paul, MN 55114Phone: (651) 735-3908 | Fax: (651) 290-2266 | [email protected]

Company _______________________________________________________________________________________________Address ________________________________________________________________________________________________City ______________________________________________________ State _________________ Zip ____________________Individual MUCA Representative _____________________________________________________________________________Company Phone ___________________________________________ Company Fax __________________________________Website Address _________________________________________________________________________________________Email Address ___________________________________________________________________________________________# of Employees _____________________________________ Specialty Area _________________________________________Committee(s) of Interest ___________________________________________________________________________________I understand that by providing my mailing and email addresses, telephone and fax numbers, I consent to receive communications sent by or on behalf of MUCA via mail, email, telephone or fax.

MeMBer tYPecontractors (volume based on overall underground work) Sales Volume Dues Under $1 Mil $1,200 $1-2 Mil $2,100 $2.1-5 Mil $3,200 Over $5 Mil $3,800

Associates $900 Government/institutions $300

Contributions or gifts to MUCA are not tax deductible as charitable contributions. However, they may be tax deductible as ordinary and necessary business expenses.

7% of MUCA dues are not deductible as business expenses.

MUCA is the ONLY trade association dedicated to the underground contracting industry –IT’S YOUR INDUSTRY! So let’s keep digging!

What we do for you: • True Utility Contractors Representation• Safety and Business Training• Jeff Hanson Memorial Golf Tournament• MUCA Annual Meeting

• Gopher State One Call Representation• Member Directory and Other Publications• Government Relations in St. Paul and D.C.

PAYMent Check (made payable to MUCA) Mastercard Visa American ExpressIf paying by credit card, please fill out all information below:Card Number __________________________________________________________________________________Cardholder Name ______________________________________________________________________________Phone_____________________________Expiration Date _______________ Security # ______________________Cardholder Signature ___________________________________________________________________________ Billing address is same as above Billing address is:Address ______________________________________________________________________________________City____________________________________________State___________ Zip ___________________________

initialsdate

CK/CCamt. paid

bal. due

fin.(For office use only)

Complete form and submit with payment to MUCA: 1000 Westgate Dr. Suite 252 | St. Paul, MN 55114Contact [email protected] with questions

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Minnesota Utility contractors Association1000 Westgate Drive, Suite 252St. Paul, MN 55114

[email protected]

Have a Question? Get an Answer.

call (651) 735-3908 and ask for...• event registration/Pipelayer or erosion control cards/General

Chris Swanson, MUCA Member Services

• Meeting/events/Sponsorships/Golf/clay Shoot/Day of the Dozers Ashley Crunstedt or Bridget Fox, MUCA Meeting Planning Team

• Accounts receivable/Accounts Payable Amanda Ewald, VP Finance & Client Accounting

• Advertising/Publications/Website Laurie Pumper or Nicki Brunner, MUCA Communications Team

• Legislative/Government relations Stephanie Menning or Lobbyist Nick de Julio (651) 290-6286

• Membership/Site Visit request/committee or Board Service Stephanie Menning

MUCA is served by Ewald Consulting, a professional association management firm. The team at Ewald can answer

many of the questions you have.

Join Our Linkedin GroupSearch groups for “Minnesota Utility

Contractors Association”