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www.abcmi.com FALL 2014 1
FALL 2014 PUbLicaTioN oF aSSociaTED bUiLDERS aND coNTRacToRS oF micHiGaN
2014VOTER’S
GUIDEABC Endorses Governor
Snyder’s Re-election
U.S. Senate: ABC BacksTerri Lynn Land
Also:
Endorsements for State& U.S. Congressional Races
Contractors: How theSupreme Court’s AffirmativeAction Decision Impacts You
2 FALL 2014 micHiGaN mERiT
SIDING - WINDOWS - GUTTERS - ROOFING - DECKING
S I D I N G W O R L D.C O M
EVERYTHING EXTERIOR
We’ve Got YouCOVERED
If Your Subs Don’t Use SIDING WORLDYou Are Probably Paying Too Much
CHECK US OUT!
CertainteedNapcoExteria
Quality AluminumJames Hardie
New Construction& Replacement
VinylmaxPly GemSilverline
WeathershieldPella
Alliance Windows
18 Colors in StockRun To Any Length
While U Wait
60 Colors in StockQuality Aluminum
Napco
AtlasCertainteed
InspireAmerican Building Component
Metal SalesQuality Aluminum
ClipStonePly Gem
StoneCraft
SIDING
ROOFING
STONE
VINYL WINDOWS
SEAMLESS ALUM GUTTERS
ALUMINUM TRIM COIL
SUBCONTRACTORREFERRALS
FOR YOUR PROJECT
SANFORDSAGINAW
CLIO
WATERFORD
MADISONHEIGHTS
CHESTERFIELD
DETROIT
WYANDOTTE
FENTON
BATTLECREEK JACKSON
LIVONIA
INKSTERKALAMAZOO
SOUTH BEND
GOSHEN
TOLEDO
6460 E. Eight Mile RdDetroit, MI 48234
313.891.2902
562 S. Reynolds RdToledo, OH 43615
419.535.1100
517 Comstock AveKalamazoo, MI 49048
269.382.6260
51236 SR-933South Bend, IN 46637
574.272.8200
3505 Ann Arbor RdJackson, MI 49202
517.764.0888
2151 Eureka RdWyandotte, MI 48192
734.284.7171
11240 N. SaginawCilo, MI 48420810.687.4730
30391 Stephenson HwyMadison Heights, MI 48071
248.585.9050
5393 N. Michigan RdSaginaw, MI 48604
989.754.3440
5211 Williams Lake RdWaterford, MI 48329
248.674.1300
2262 Meridian RdSanford, MI 48657
989.687.7313
49599 N. GratiotChesterfield, MI 48051
586.598.7600
30626 W. Eight Mile RdLivonia, MI 48152
248.478.8984
1605 W. Columbia AveBattle Creek, MI 49015
269.969.2806
418 Blackport RdGoshen, IN 46528
574.532.1591
3000 Middlebelt RdInkster, MI 48141
734.728.0400
195 S. Alloy DrFenton, MI 48430
810.714.9300
www.abcmi.com FALL 2014 3
inside
VoLUmE Viii, iSSUE 4
24 Government Affairs AttorneyGeneralSchuettereceivesABCof
MichiganLibertyaward
ABC commends Livingston County forrepealingprevailingwagerequirements
4 Executive Perspective Aremarkableconstructionindustry
comebackoverthenext4years—let’skeepthemomentumgoingthisNovember.
6 2014 Voters’ Guide Michigangoestotheballotbox.See
endorsementsforGovernor,Lt.Governor,AttorneyGeneral,SecretaryofState,MichiganHouseandSenate,Stateboards,SupremeCourtandfederalcandidates.
14 ABC Members Say Snyder is Rebuilding Economy
Anin-depthanalysisofMichigan’shugeimprovementineconomicoutlookandconstructionindustrybusinessclimatesinceGov.Snyder’selectionin2010.
17 National Elections Overview: All Elections are Important
Easywaystomakeabigimpactonbehalfoffreeenterpriseandopencompetition.
20 A Contractor’s Guide to Michigan’s Affirmative
Action Ban Contractors:TheSupremeCourt’srecent
reinstatementofMichigan’sAffirmativeActionbanwillimpactyourbusiness.
SIDING - WINDOWS - GUTTERS - ROOFING - DECKING
S I D I N G W O R L D.C O M
EVERYTHING EXTERIOR
We’ve Got YouCOVERED
If Your Subs Don’t Use SIDING WORLDYou Are Probably Paying Too Much
CHECK US OUT!
CertainteedNapcoExteria
Quality AluminumJames Hardie
New Construction& Replacement
VinylmaxPly GemSilverline
WeathershieldPella
Alliance Windows
18 Colors in StockRun To Any Length
While U Wait
60 Colors in StockQuality Aluminum
Napco
AtlasCertainteed
InspireAmerican Building Component
Metal SalesQuality Aluminum
ClipStonePly Gem
StoneCraft
SIDING
ROOFING
STONE
VINYL WINDOWS
SEAMLESS ALUM GUTTERS
ALUMINUM TRIM COIL
SUBCONTRACTORREFERRALS
FOR YOUR PROJECT
SANFORDSAGINAW
CLIO
WATERFORD
MADISONHEIGHTS
CHESTERFIELD
DETROIT
WYANDOTTE
FENTON
BATTLECREEK JACKSON
LIVONIA
INKSTERKALAMAZOO
SOUTH BEND
GOSHEN
TOLEDO
6460 E. Eight Mile RdDetroit, MI 48234
313.891.2902
562 S. Reynolds RdToledo, OH 43615
419.535.1100
517 Comstock AveKalamazoo, MI 49048
269.382.6260
51236 SR-933South Bend, IN 46637
574.272.8200
3505 Ann Arbor RdJackson, MI 49202
517.764.0888
2151 Eureka RdWyandotte, MI 48192
734.284.7171
11240 N. SaginawCilo, MI 48420810.687.4730
30391 Stephenson HwyMadison Heights, MI 48071
248.585.9050
5393 N. Michigan RdSaginaw, MI 48604
989.754.3440
5211 Williams Lake RdWaterford, MI 48329
248.674.1300
2262 Meridian RdSanford, MI 48657
989.687.7313
49599 N. GratiotChesterfield, MI 48051
586.598.7600
30626 W. Eight Mile RdLivonia, MI 48152
248.478.8984
1605 W. Columbia AveBattle Creek, MI 49015
269.969.2806
418 Blackport RdGoshen, IN 46528
574.532.1591
3000 Middlebelt RdInkster, MI 48141
734.728.0400
195 S. Alloy DrFenton, MI 48430
810.714.9300
© iStock.com/Steve Debenport
4 FALL 2014 micHiGaN mERiT
Wehopeyou’lltakesometimewiththiseditionofMichigan Merit to think about the importance of November’selectionnotonlyforourstate,butalsowhatitmeansforyourcompany,Michigan’sconstructionworkforceandtheoverallMeritShopconstructionindustry.
During thepasteightmonthsABCofMichiganhasmetwith more than 100candidates for office,worked toeducateandinformdecision-makersonissuesofimportancefor our industry andhas worked with ourgovernment affairs
committee to make sure that the voices of ABC membersacrossMichiganareheardbothinLansingandWashingtonDC.
ThelastfewyearshavebeenremarkableforconstructioninMichigan.SinceGov.Snyderandcurrentlegislativeleaderstookoffice,Michiganhasgainedconstruction jobsyear after year in a remarkable industryturnaround.Notonlyhavetotalconstructionjobsincreased,constructionincomeshavealsoincreasedeveryyeartothebenefitofouroverallconstructioneconomy.
ItallamountstomoreandbetterjobsfortheconstructionindustryinMichigan.Ourjobthiselectionyear is tomakesurewekeepourfootonthegaspedaltothecontinuedbenefitofABCmemberseverywhere.Wehaveseenfirsthandthebenefitsof freeenterpriseandequalopportunityregardlessoflaboraffiliation.Wehavealsoseenfirsthandthebenefitsoflivinginarighttoworkstateandhavingpassedthemostcomprehensivelawinthecountrytoreformthediscriminatoryuseofunion–onlyprojectlaboragreements.Allthishasbeenpossiblebecauseofoureffortstoengageelectedofficialsandthroughalotofhardwork.
Thiselectionyearit’scrucialthatwemakesurewedoallwecantoprotectourindustryandgrowitevenfurther.PleasetakethetimetoreviewtheelectionguideenclosedinthismagazineandshareitwithotherswhocareasmuchasyoudoaboutconstructioninMichigan.YoursfortheMeritShop,
ChrisFisher
ASSOCIATEDBUILDERSandCONTRACTORSofMICHIGAN
2014 BOARD of DIRECTORS
Brian Stadler, ChairmanWolgast CorporationGreater Michigan Chapter
Dan Murphy, Vice-ChairmanMAG InsulationGreater Michigan Chapter
Dave Sheffield, Secretary-TreasurerOnslow-Sheffield, Inc.Southeastern Michigan Chapter
Chris Beckering, Immediate Past ChairPioneer ConstructionWestern Michigan Chapter
Jim CrippsCripps Fontaine Excavating, Inc.Western Michigan Chapter
Mike HousemanWolverine Building GroupWestern Michigan Chapter
Rick JacksonJackson Associates, Inc.Southeastern Michigan Chapter
Michael MarksThe Mackenzie CompaniesGreater Michigan Chapter
Dave Mollitor Consolidated Electrical ContractorsGreater Michigan Chapter
Bill MolnarWm. Molnar Roofing Co., Inc.Southeastern Michigan Chapter
Jack VandeGuchteWestern Michigan Chapter
Daniel WelchWelch Tile & Marble CompanyWestern Michigan Chapter
MICHIGAN MERIT CONTRIBUTORS
Publisher: Christopher Fisher
Managing Editor: Mary Boardway, CAE
Communications Coordinator: Elise Layton
ABCMI Economist: Don Wilson
Design and Printing: Keystone Millbrook
Advertising: Strategic Value Media
Editorial: Lezotte Miller Public Relations
Michigan Merit (ISSN# 1938-9051) is the official publication of Associated Builders and Contractors Inc. of Michigan (ABC of Michigan) and is published quarterly at 230 N. Washington Sq., Suite 202, Lansing, MI 48933, (517) 853-2545. Please direct all inquiries to the previous address. Articles written by outside authors do not necessarily reflect the views of Associated Builders and Contractors Inc. of Michigan. ABC of Michigan reserves the right to reject or edit all material submitted for publication. The appearance of an advertisement in Michigan Merit does not constitute endorsement of the advertiser, its products or services, nor do Michigan Merit or Associated Builders and Contractors Inc. of Michigan guarantee or warrant any claims or offers made by the advertisers.
Permission to reprint in whole or in part is hereby granted, provided the following credit line is used: “Reprinted by permission from Michigan Merit, a publication of Associated Builders and Contractors Inc. of Michigan.”
Our job this year is to make sure we keep our foot on the gas pedal to the continued benefit of ABC members everywhere.
www.abcmi.com FALL 2014 5www.abcmi.com FALL 2014 5
Make sure your hard work doesn’t go to waste
abcvotes.com
VOTE ON NOVEMBER 4
FREE ENTERPRISE
ALLIANCE
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6 FALL 2014 michigan merit6 FALL 2014 michigan merit
Associated Builders and Contractors of Michigan proudly and enthusiastically endorses the re-election of Gov. Rick Snyder and Lt. Gov. Brian Calley, who since taking office in 2011 have relentlessly worked to put the state back on the path toward economic prosperity.
Gov. Snyder has implemented a wide range of economic reforms that prove he is the voice for construction that Associated Builders and Contractors of Michigan wants in Lansing.
Governor oF MichiGAn
rick Snyder/BriAn cALLey
Throughout his time in office, Snyder has held true to his platform and valued job creation in both the private and public sectors. Among his many notable achievements:
• A ban on government-mandated project labor agreements, ensuring that Merit Shop contractors are allowed to compete on a level playing field on all state-funded construction projects
• Tax reform that eliminated the unfair and unpopular
www.abcmi.com FALL 2014 7
ABC of Michigan endorses the retention of Bill Schuette asMichigan’sattorneygeneral.SchuettehasreflectedABC’sprinciplesthroughout his time as attorney general, a U.S. congressman,directorof thestate’sDepartmentofAgriculture,astatesenatorandastateCourtofAppealsjudge.
Attorney General Bill Schuette has a strong record ofchampioningtheruleoflawandequalopportunityforall.Schuettehas been a part of the Snyder administration’s strong focus ongettingMichiganbackon its feet economically,buthehas alsobeen a strong advocate for protecting Michigan’s Constitution,fighting for elimination of government-mandated Project LaborAgreementsanddefendingMichigan’sRighttoWorklegislation.
Schuettebroughta wealthoflegalandpoliticalexperiencetotheattorneygeneral’soffice.Hisadvocacyforbusinessandoppositionto special interests shines throughout his record as a lawmakerandjurist.Schuette’sopponentwillbeMarkTotten,anMSUlegalprofessorwhohasbeenendorsedbyeverymajorunioninthestate.
Attorney GenerAL oF MichiGAn
BiLL Schuette
MichiGAn SecretAry oF StAte
ruth JohnSon
TheMichiganSecretaryofStateoverseeselectionsandcampaignfinancelawsinMichigan,aswellasadministersvehicleregistrationandlicensingofdrivers.ABCofMichiganhasendorsedincumbentSecretaryofStateRuthJohnsonforasecondterminoffice.
Johnson, a Republican, has handled the duties of her officein thepast fouryears inaneven-handed,efficientmanner.Shehasworkedhard toreducedelays, improveonlineservicesandincrease innovation. Since ABC members register thousandsof work vehicles each year and the customer service andtechnological innovationsmadepossibleby Johnsonhelp themdobusinessmoreefficientlyandmoreeffectively,weareproudtosupporthercampaignforreelection.
A former Oakland County commissioner, Johnson has alsopreviouslyservedasastaterepresentative,andthenas thefirstwoman elected to serve as Oakland County clerk. Johnson’sDemocratic opponent in November will be Godfrey Dillard, aDetroitcivilrightsattorney.
businesses,includingmanyABCofMichiganmembers• EnactmentofRighttoWorklegislation,furtherpromoting
free-marketcompetitioninMichiganandhelpingthestatecompeteforjobs-producingindustrieswithotherstates
• Eliminationofregulatoryredtape,makingiteasierforABC
ofMichiganmemberstodowhattheydobest—producequalityworkinasafeenvironment
It’sforthosereasonsandmorethatconstructionemploymentandwageshaveincreasedeachyearSnyderhasbeeninoffice.
Morebroadlyspeaking,sinceDecember2010,nearlyaquartermillionprivatesectorpayrolljobshavebeencreatedinMichiganandunemploymenthasreacheditslowestpointinsixyears.Therestofthecountryistakingnotice,asevidencedbyFitchraisingMichigan’screditratingforthefirsttimesince2007.
Theevidence is clear thatSnyderhas steeredMichiganawayfrom bloated and inefficient government and toward a path ofeconomicprosperity.
Michigan’s long-awaited economic reinvention is well underway, and it’s astounding what the Snyder administration hasaccomplishedinfouryears.
ABCofMichiganhaseveryconfidencethatSnyderandCalleywillcontinuetoimproveoureconomy,reformstategovernmentandkeepMichigan’scomebackgoingstrongduringasecondterminoffice.
(L to R): ABC members Robert Clancy, Robert Clancy Contracting,
Gov. Snyder and Michael Grover, MDG Enterprises.
8 FALL 2014 micHiGaN mERiT
District PartyAffiliation Name
MichiGAn SenAte
MArGAret o’BrienSENaTE DiSTRicT 20
TheMichigan Senate is currentlyRepublican controlledby amarginof26-12,andislikelytoremainmajorityGOP.However,withtermlimits,retirements,andredistrictingthattakeseffectinthiselection,Republicanswillnottakeanyvictoriesforgrantedthisyear.
ABCSpotlightRaces:TheDemocraticcaucushopes to takeseatslikethe20thDistrict,adistrictthatiscurrentlyrepresentedbyRepublicanTonyaSchuitmaker.Sen.Schuitmakerwillruninthenewly redistricted26thDistrict,whileRepublicannomineeand current State Rep. Margaret O’Brien (61st District) facesoff against fellow State Rep. Sean McCann, a Democrat who
ken hornSENaTE DiSTRicT 32
represents the60thDistrict.ABChasendorsedRep.O’Brien inthe20thSenateDistrictforherprovenrecordonjobcreationandfreeenterprise.
In the 32nd District, ABC has endorsed Republican formerStateRep.KenHorn,whofacesstiffcompetitionfromDemocraticStateRep.StaceyErwinOakes fora seatbeingvacatedbySen.RogerKahn.
The Senate will only remain a pro-growth chamber if ABCmembers andother like-mindedvoters turnout at thepolls inNovember.ThelistbelowrepresentsABC’sendorsementsintheelection.
20thDistrict R MargaretO’Brien
21stDistrict R JohnProos(i)
22ndDistrict R JoeHune(i)
23rdDistrict R CraigWhitehead
24thDistrict R RickJones(i)
25thDistrict R PhilPavlov(i)
26thDistrict R TonyaSchuitmaker
27thDistrict R BrendtGerics
28thDistrict R PeterMacGregor(i)
29thDistrict R DaveHildenbrand(i)
30thDistrict R ArlanMeekhof(i)
31stDistrict R MikeGreen(i)
32ndDistrict R KenHorn
33rdDistrict R JudyEmmons(i)
34thDistrict R GeoffHansen(i)
35thDistrict R DarwinBooher(i)
36thDistrict R JimStamas
37thDistrict R WayneSchmidt
38thDistrict R TomCasperson(i)
(Key: (i)=incumbent)
1stDistrict R BarryBerk
2ndDistrict R MarkPrice
3rdDistrict R MatthewKeller
4thDistrict R KeithFranklin
5thDistrict R JenniferRynicki
6thDistrict R DarrellMcNeill
7thDistrict R PatrickColbeck(i)
8thDistrict R JackBrandenburg(i)
9thDistrict R HawkeFracassa
10thDistrict R ToryRocca(i)
11thDistrict R BorisTuman
12thDistrict R JimMarleau(i)
13thDistrict R MartyKnollenberg
14thDistrict R DavidRobertson(i)
15thDistrict R MikeKowall(i)
16thDistrict R MikeShirkey
17thDistrict R DaleZorn
18thDistrict R TerryLinden
19thDistrict R MikeNofs(i)
www.abcmi.com FALL 2014 9
The Michigan House is currently a Republican majority chamber as well – but Democrats are working hard to change that. The balance in the 110-member chamber is 59-50 (one independent), with many races in play this year. Since 2010, the House has passed major reforms, including a ban on government-mandated Project Labor Agreements (PLAs) in 2011 and 2012, and Right to Work in 2012. In addition, the current majority leadership has worked hard on trimming regulation and taxation in conjunction with the Snyder administration’s pro-jobs, pro-growth agenda.
ABC Spotlight Races: New to the political scene in Lansing, but certainly no stranger to leadership, former Michigan Air National Guard Brigadier General Carol Ann Fausone (Republican) is seeking the 21st District seat in the Canton-Belleville area. Fausone has an excellent opportunity to win the seat. In the 76th District, former Grand Rapids controller and Grand Valley State
1st District R John Hauler
2nd District R Daniel Lamar
3rd District R Dolores Broderson
4th District R Edith Floyd
5th District R Dorothy Patterson
6th District R Tairia Bridges
7th District R David Bradley
8th District R Christopher Ewald
9th District R James Stephens
10th District R Matthew Hauser
11th District R Jim Rhoades
12th District R Kelly Thompson
University professor Donijo DeJonge (Republican) looks to unseat Rep. Winnie Brinks (D). DeJonge has a background in public budgeting and finance and strong free enterprise bona fides. Also seeking to switch a Democratic seat is Tom Barrett (Republican), a Michigan civil servant and Iraq War veteran who is looking to defeat Democratic Rep. Theresa Abed in vulnerable Eaton County. ABC of Michigan has endorsed Fausone, DeJonge, and Barrett in these races.
Each of the races listed below plays a crucial role in defending the Merit Shop gains of the past four years, and in giving us the opportunity to make even more gains as we forge ahead and advocate for free enterprise, open competition, and increased opportunity. Encourage your friends and employees (see ABCVotes.com sidebar on pg. 23 for tips on how to appropriately discuss elections with employees) to be engaged this November!
District Party Affiliation Name13th District R Harry Sawicki
14th District R Nathan Inks
15th District R Johnnie Salamassi
16th District R Steve Boron
17th District R Charles Londo
18th District R Roland Fraschetti
19th District R Laura Cox
20th District R Kurt Heise (i)
21st District R Carol Ann Fausone
22nd District R Jeff Bonnell
24th District R Anthony Forlini (i)
23rd District R Pat Somerville (i)
25th District R Nick Hawatmeh
MichiGAn houSe oF repreSentAtiveS
cAroL Ann FAuSonehoUSe DiStrict 21
donijo dejonGehoUSe DiStrict 76
toM BArretthoUSe DiStrict 71
10 FALL 2014 micHiGaN mERiT
26thDistrict R GregDildilian
27thDistrict R MichaelRyan
28thDistrict R BethFoster
29thDistrict R DavidLonier
30thDistrict R JeffFarrington(i)
31stDistrict R PhilRode
32ndDistrict R AndreaLafontaine(i)
33rdDistrict R KenGoike(i)
34thDistrict R BruceRogers
35thDistrict R RobertBrim
36thDistrict R PeterLucido
37thDistrict R RichardLerner
38thDistrict R KathyCrawford
39thDistrict R KlintKesto(i)
40thDistrict R MikeMcCready(i)
41stDistrict R MartinHowrylak(i)
42ndDistrict R LanaTheis
43rdDistrict R JimTedder
44thDistrict R JimRunestad
45thDistrict R MikeWebber
46thDistrict R BradfordJacobsen(i)
47thDistrict R HenryVaupel
48thDistrict R StephanieStikovich
49thDistrict R LuPenton
50thDistrict R CraigWithers
51stDistrict R JosephGraves(i)
52ndDistrict R JohnHochstetler
53rdDistrict R JohnSpisak
54thDistrict R EdMoore
55thDistrict R LeonardBurk
56thDistrict R JasonSheppard
57thDistrict R NancyJenkins(i)
58thDistrict R EricLeutheuser
59thDistrict R AaronMiller
60thDistrict R MikePerrin
61stDistrict R BrandtIden
62ndDistrict R JohnBizon
63rdDistrict R DavidMaturen
64thDistrict R EarlPoleski(i)
65thDistrict R BrettRoberts
66thDistrict R AricNesbitt(i)
67thDistrict R JohnHayhoe
68thDistrict R RobSecaur
69thDistrict R FrankLambert
70thDistrict R RickOutman(i)
71stDistrict R TomBarrett
72ndDistrict R KenYonker(i)
73rdDistrict R ChrisAfendoulis
74thDistrict R RobVerheulen(i)
75thDistrict R JohnLohrstorfer
76thDistrict R DonijoDejonge
77thDistrict R TomHooker(i)
78thDistrict R DavePagel(i)
79thDistrict R AlPscholka(i)
80thDistrict R CindyGamrat
81stDistrict R DanLauwers(i)
82ndDistrict R ToddCourser
83rdDistrict R PaulMuxlow(i)
84thDistrict R EdwardCanfield
85thDistrict R BenGlardon(i)
86thDistrict R LisaPosthumusLyons(i)
87thDistrict R MikeCallton(i)
88thDistrict R RogerVictory(i)
89thDistrict R AmandaPrice(i)
District PartyAffiliation Name
MichiGAn houSe oF repreSentAtiveS (cont.)
www.abcmi.com FALL 2014 11
MichiGAn houSe oF repreSentAtiveS (cont.)
90thDistrict R DanielaGarcia
91stDistrict R HollyHughes
92ndDistrict R KenBerman
93rdDistrict R TomLeonard(i)
94thDistrict R TimKelly(i)
96thDistrict R CarlosJaime
97thDistrict R JoelJohnson(i)
98thDistrict R GaryGlenn
99thDistrict R KevinCotter(i)
100thDistrict R JonBumstead(i)
101stDistrict R RayFranz(i)
102ndDistrict R PhilPotvin(i)
103rdDistrict R BruceRendon(i)
104thDistrict R LarryInman
105thDistrict R TristonCole
106thDistrict R PeterPettalia(i)
107thDistrict R LeeChatfield
108thDistrict R EdMcBroom(i)
109thDistrict R PeteMackin
110thDistrict R BobMichaels
(Key: (i)=incumbent)
www.e f f i c i en t c raneso lu t ions . com
BRAD [email protected]
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12455 Hale • P.O. Box 2272 • Riverview, MI 48193WILLIAM MOLNAR, PresidentCell: 313.304.1160
Office: 734.281.0591Fax: 734.281.7303
Wm. MOLNARROOFING, Inc.
Commercial & Industrial
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12 FALL 2014 micHiGaN mERiT
TheMichiganSupremeCourtprimarily reviewsdecisionsbythe Michigan Court of Appeals, granting review to cases withimportancetothegeneralpublic.
Twoofthesevenseatsareup forafull-termelectionthisyear,withonepartialtermalsoontheballot.ABChasendorsedthreeruleoflawjudges(whosejudicialphilosophyistointerpretwhatthelawis,nottodecidewhatitshouldbe);theseindividualswillprotecttheintegrityofourpoliticalsystembyensuringthateachbranchofgovernmentstayswithinitsmandatedrole.
Michigan citizens will vote for two of five candidates on theballotforfulleightyearterms.ForthesepositionsABCendorsesincumbentJusticeBrianZahra,whohasbeenonthecourtsince
his appointment in 2011. For the second open position, ABCendorsesCircuitCourtJudgeJamesRedford,aretiredNavyJudgeAdvocateGeneralwithadistinguishedcivilianlegalcareer.
Voterswillalsochosefromthreecandidatesforapartialtermendingin2017.ABCendorsesincumbentJusticeDavidViviano,whohasbeenserving sincehisappointmentbyGovernorRickSnyderin2013.
TheCourtcurrentlyhasa5-2conservativemajority;re-electingJustices Viviano and Zahra and electing Judge Redford wouldretaintheconservativemajorityandensurethatMichigan’slawsareprotected.
MichiGAn SupreMe court
JudGe JAMeS redFordFULL TERm
JuStice dAvid viviAnoPaRTiaL TERm
JuStice BriAn ZAhrAFULL TERm
R E C Y C L E D C O N C R E T E , L L C .GBM
Removal, Trucking & Processing
7644 Whitmore Lk. Rd. • Brighton, MI 48116phone: 810-231-5188 • fax: 810-231-5404
• Chilson Road, Howell • Kensington Road, Brighton • Hawley Road, Holly
Sales • Service • Rentals • Parts3310 Hudson Trails Drive, Hudsonville, MI 49426
p: 616.896.7700 • f: 616.896.6700w: www.grandequipment.com
www.abcmi.com FALL 2014 13
www.greatlakesroofing.com 800-800-6207 An authorized Duro-Last contractor
And Insulation Systems, Inc.
www.greatlakesroofing.com 800-800-6207
An authorized Duro-Last contractor
Flat Roofing, Blown Cellulose & Fiberglass, & Spray Foam Insulations 909 N Milford Rd. Highland, MI 48357
248-887-9700 • jwfield.com
Landscape Supplies• Natural Forest Product
Mulch Made On Site• Colored and Natural• Sands & Aggregates
Septic Services• Commercial & Residential
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united StAteS SenAte
terri Lynn LAnd
For the first time in a long time, there is a very competitive
UnitedStatesSenateseatinplay.RepublicanTerriLynnLand, the
formerMichiganSecretaryofState,hasbeenproudlyendorsed by
ABCinthisrace.
After long-serving Senator Carl Levin (D) announced his
retirement, Land has been campaigning on bringing the same
commonsensesolutionstoWashingtonthat have workedsowell
ingettingMichiganbackontrack.Landhas provenexperience
withimprovedefficiencyandfiscalresponsibilityasSecretaryof
State,andasasmallbusinessownerandnativeMichigander,she
hasaground-levelviewoftheproblemsthatexcessivegovernment
regulationscancause.Heremphasishasbeenonrepealingand
replacingObamacarewithrealhealthcarereform,amessagethat
resonatesstronglywithABCmembers.
Land faces Democrat U.S. Rep. Gary Peters (MI-14) in the
generalelection,witharacethatpromisestobeclose.
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Michigan’s Congressional delegation will look significantlydifferentwhenthe114thCongresstakesofficeinJanuary2015.Long-time Congressmen Dave Camp (R-MI-04), Mike Rogers(R-MI-08), and John Dingell (D-MI-13) each announced theirretirements fromCongress early this year.Competitive races inotherHouseseatsmeanABCmembersneedtoworkhardtoelectandre-electcandidateswhowillfightforABCissues.
ABCSpotlightRaces: In the 4th District, State Senator andstrongMeritShopadvocateJohnMoolenaarwonahotlycontestedRepublican primary for the right to run in November’s generalelection against Democratic candidate Jeff Holmes. The 8thDistrictwillseeafightbetweenRepublicanformerStateSenatorMike Bishop (who bested current State Rep. Tom McMillin inthe GOP primary) and Democrat Ingham County Clerk EricSchertzing.
The 7th District is seeing a showdown between Republican
MichiGAn conGreSSionAL rAceS
John MooLenAArcoNGRESSioNaL DiSTRicT 4
Mike BiShopcoNGRESSioNaL DiSTRicT 8
dAn BeniShekcoNGRESSioNaL DiSTRicT 1
tiM WALBerGcoNGRESSioNaL DiSTRicT 7
incumbentRep.TimWalberg(whohasbeenstronglysupportiveof free enterprise during a career in both state and federalgovernment)andDemocratPamByrnes,aformerlegislatorandattorney.
In Northern Michigan (including the Upper Peninsula),incumbentRepublicanRep.DanBenishekdefendshis1stDistrictseatagainstJerryCannon,aformermilitaryofficer.Rep.BenishekhasbeenendorsedbyABC.
Michiganmustputupastrongshowingforitsfreeenterprise,open-competition candidates in this federal election. Althoughthis is not a presidential election year, these federal candidateswill each make a huge impact on Michigan builders andcontractors. ABC members should consider how their electiondaychoicescouldstrikeablowagainstfederaloverreachandjob-killingmandates likefederalprevailingwage(Davis-Bacon)andObamacare.
INDUSTRIAL COMMERCIAL RESIDENTIALAGRICULTURAL
John SteveMike
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MSUTrustee R MelanieFoster
MSUTrustee R JeffSakwa
UniversityofMichiganRegent R RobSteele
UniversityofMichiganRegent R RonWeiser
WayneStateBoard R MichaelBusuito
WayneStateBoard R SatishJasti
univerSity BoArdS
ABCofMichiganendorses thecandidatesbelowfor thestateuniversityboardsbecausetheystandforfreeandopencompetitioninthemanagementofthesetaxpayer-fundedinstitutions.
District PartyAffiliation Name
united StAteS houSe oF repreSentAtiveS endorSeMentS
District PartyAffiliation Name
1stDistrict R DanBenishek(i)
2ndDistrict R BillHuizenga
3rdDistrict R JustinAmash(i)
4thDistrict R JohnMoolenaar
5thDistrict R AllenHardwick
6thDistrict R FredUpton(i)
7thDistrict R TimWalberg(i)
8thDistrict R MikeBishop
9thDistrict R GeorgeBrikho
10thDistrict R CandiceMiller(i)
11thDistrict R DaveTrott
12thDistrict R TerryBowman
13thDistrict R JeffGorman
14thDistrict R ChristinaConyers
Times may be tough. But therE's a brighter tomorrow.
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Grand Rapids, MI 49534Fax: 616-735-3159
The Michigan State Board of Education provides key policyguidance and direction for the state’s educational system. ABChasendorsedthecandidatesbelow.MM
StateBoardofEducation R MariaCarl
StateBoardofEducation R JonathanWilliams
District PartyAffiliation Name
StAte BoArd oF educAtion
16 FALL 2014 micHiGaN mERiT
abc mEmbERS Say
SNYDER ISrebuildingEcoNomy
An Associated Builders and contractorsof Michigan Analysis
While economists cite various statistics as evidence that
Michigan’seconomicenvironmenthasmarkedlyimprovedduring
Gov. Rick Snyder’s tenure, Associated Builders and Contractors
members suchasDaveTebbenpoint toother, less tangiblebut
perhapsjustaspersuasiveindicators.
“I tell people I think the biggest difference is people are
optimistic again,” says Tebben, president of K&H Concrete
CuttingofLansing,anABCofMichigan member.“Fouryearsago,
peoplewerejustgratefuliftheyhadagoodmonth—theyhad
nohopeitwouldcontinue.Butnow,iftheyhaveagoodmonth,
they’retalkingaboutaddingequipmentandguys.There’sbeena
hugeshift,andIthinkit’sareflectionofthepoliticalclimateand
manufacturingcomingback.”
Indeed, ABC members credit various policy changes
enacted sinceSnyder tookoffice in2011 forwhat they sayare
vast upgrades in the state’s business climate: the banning of
government-mandated project labor agreements on publicly
fundedconstructionprojects,taxrestructuring,adoptionofright-
to-workandareductioninregulatoryredtape.
The Snyder-crafted reform of unemployment insurance and
Her
man
Uto
mo/
bigs
tock
.com
www.abcmi.com FALL 2014 17
Thomas Doyle 248.223.3402 [email protected] plantemoran.com
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workers compensation insurance, will further make the state a
betterplaceforbusinesses,observerssay.
Michigan Becomes More competitiveIn endorsing Snyder for re-election, ABC of Michigan noted
thatconstructionjobsandsalarieshaveincreasedeachyearthe
governorhasbeeninoffice.
When asked to identify members who have benefited from
policies implemented by Snyder, ABC of Michigan President
ChrisFisheropenedtheassociation’smembershipdirectoryand
randomlystartedpointingatnames,indicatingthewide-ranging
gainstheindustryhasmadesince2011.
“I’d think that everyone would say there’s no comparison in
the state’sbusiness environmentnowvs.how itwas fouryears
ago,”Fishersays.“Gov.Snyderhasprovedhimselftobeagreat
friendoftheconstructionindustryandAssociatedBuildersand
ContractorsofMichigan.”
Timothy Nash, vice president for strategic and corporate
alliancesandtheFryendowedprofessorinfreemarketeconomics
at Northwood University, says the construction industry’s
resurgenceispartofthe state’soverallrebound.
“ThestateofMichiganisineconomicrecovery,”hesays,noting
that Michigan led the Great Lakes states in average gross state
productgrowthfrom2011to2013andrankedasolid20thinthe
nationinthatcategoryin2013.
Howmuchofthejobcreationandeconomicgrowthisdirectly
attributable to Snyder’s policies is open to interpretation, given
the complexity of the economy, economists say. Anirban Basu,
chief economist for ABC at the national level, said he believes
electedofficialsgenerallygetbothtoomuchcreditandtoomuch
blameforaneconomy’sperformance.
Nationaleconomicpolicyalsolargelydictateseconomicactivity
atthestatelevel,Nashsays.“Michigancandoonlysomuch.The
restofitishugelydependentonwhathappensinWashington.”
Still,Basusays,there’snodenyingthatMichiganhasundergone
“unimaginable,boldchange”underSnyder.Manyaspectsofthe
newdirection,suchasMichiganbecomingaright-to-workstate,
willallowthestatetobettercompeteonaregionalandnational
basis,heexplains.
“What it’s done is removed a disadvantage, especially with
Indiana(alsoaright-to-workstate)rightontheborder.”
A change in AttitudeSnydercriticscontendthatMichigan’seconomyhadnowhere
18 FALL 2014 micHiGaN mERiT
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togobutupwhenhetookofficeasthenationwasemergingfrom
thedepthsofthegreatrecession.
“Youcould argue that things couldnothavegottenworse in
Michigan,”Nashsays.“Butpeoplewerealsosayingthatin2002,
2006,2010…andtheystilldid.”
To be sure, various economic indicators show that Michigan
isnolongerthenationaleconomiclaggardthatitwasformuch
oftheearlierpartofthemillennium.BasunotesthatMichigan’s
unemploymentratestillhoversabovethenationalaverage—7.4
percentinAugustvs.6.1percentnationally—butnotbynearlyas
muchasitoncedid.Forexample,whentheU.S.unemployment
ratestoodat9.9percentinDecember2009,Michigan’srate wasa
full4percentagepointshigherat13.9percent.
“I think that isaclear indicationofeconomicprogress,” says
Basu.
Perhapsas importantasspecificpolicychanges is thechange
in tone fromstategovernment towardthebusinesscommunity,
Nashnotes.
“TomethebiggestthingRickSnyderhasbroughttothegame
isnotananti-businessmentality.”
LarryClark,presidentoftheClarkCompaniesofLansing,an
ABCofMichiganmember,echoesthosesentiments.UnderSnyder,
there’s less interference in how he operates his business, Clark
says, pointing to right to work and the government-mandated
PLAban inparticular as initiatives thathavecreatedmoreof a
free-marketenvironmentwithinthestate.
articlearticleF E A T U R E
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articlearticleF E A T U R E
“The construction industry is going forward,”Clark said. “In
thestateofMichigan,we arebeginningarebound.”
pLA Ban provides a BoostMichaelMarks,vicepresidentofoperationsatE.T.MacKenzie
Co.,aGrandLedge-basedABCofMichiganmember,citesalist
ofregulatoryandpolicychangesimplementedundertheSnyder
administration that have greatly improved the business climate
formeritshopcontractors.
“Doing away with the Michigan Business Tax is something I
thinkeveryonehasapprovedof,”hesays.
At the beginning of 2012, the complicated and unpopular
Michigan Business Tax was replaced by a flat-rate corporate
incometax—ameasurethatloweredoverallbusinesstaxesby
$1.6billionayear.Under thechange,smallbusinessessuchas
thoseorganized asS corporationsorpartnershipswere exempt
fromanystatecorporateincometaxontheiroperations,leaving
justCcorporationstopayaflat6percentrate.
NashsaystaxreformlikelybenefitedalargepercentageofABC
members,manyofwhicharesmallercontractorsnotorganizedas
Ccorporations.
Marks also applauded Snyder’s work toward reducing
unnecessary and overlapping rules and regulations, making it
easiertoconductbusinessingeneral.SnydercreatedtheOffice
ofRegulatoryReinvention in2011 to increase the effectiveness
ofstategovernment.Theofficehasrescindedaround 2,000rules
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articlearticleF E A T U R E
deemed obsolete, burdensome or duplicative, with the goal of
improving regulatory efficiencyand savingbusinesses timeand
money.
But,aswithmanyABCmembers, theeliminationofgovernment-
mandated project labor agreements has had the biggest direct
impactofallSnyder-erapolicychangesonE.T.MacKenzie,Marks
says.
Snyder in 2011 signed legislation banning government-
mandated PLAs on publicly funded construction projects in
Michigan,supportingABC’sresearchshowingthatgovernment-
mandatedPLAsarediscriminatoryagainstnonunioncontractors
and wasteful because they stymie competition by effectively
preventingmeritshopcontractorsfrombiddingonprojects.The
banwasinitiallystruckdown byaU.S.districtjudgeinDetroit
butwaseventuallyupheldbytheU.S.CourtofAppeals.
“Projectlaboragreements,foruspersonally, wereahugeissue,”
Markssays.“WhenPLAswerelegal,iteffectivelycutusoutof25
percentofourtypicalmarket,soit’smadeabigdifferenceforus.”
MarksnotesthatMacKenziehaslonghadanofficeinAnnArbor,
whereithasworkedonanumberofsewer,waterandroadprojects
forthecity.Duringtheheartof thegreatrecession,however,Ann
ArborleadersbeganrequiringPLA-typeconstructionunityboard
agreementsonpublicconstructionprojects,shuttingMacKenzie
outofthemarketplace.
“Itwastheworsttimingforusbecauseitwasatatimewhen
themarket wasincrediblybad,”Marksexplains.“AssoonasPLAs
wereillegal,westartedgettingCityofAnnArborworkagainright
away.”
An economic Foundation to Build uponThe latest report from the Research Seminar in Quantitative
Economics (RSQE) at the University of Michigan noted that
Michigangainedahealthy70,000jobsin2013,similarto2012.
Whilejobcreationslowedinthefirstquarteroftheyear,perhaps
duetotheharshwinter,itwasexpectedtostrengthentherestof
theyearandholdsteadythrough2015,RSQEprojected.
TheUMforecastersalsosaidconstructionwillrankasoneof
thetopthreejob-producingindustriesoverthenexttwoyears.
www.abcmi.com FALL 2014 21
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articlearticleF E A T U R E
AsMichigancontinuesitseconomicreboundanditstaxbase
grows, public financing for construction projects that dried up
duringtherecessionandinitsaftermathwillbegintoflowagain,
Basupredicts.
“ThosecontractorswhostuckitoutinMichiganaregoingto
reapthefruitofthat,”hesays.
Withafriendofbusinesspresidingoverstategovernment,it’s
easierforcontractorstoplanforthefuture,Tebbensays.
“You know that there’s nothing too crazy coming down the
pipe.Youjustgetthefeelingthatthere’salotofconfidenceinour
staterightnow.”MM
22 FALL 2014 micHiGaN mERiT
articlearticleF E A T U R E
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By chris Singerling, ABc national Senior director of political Affairs
Ithasbeensaidtimeandagainhowthisyear’selectionisthe
mostimportantinageneration(oralifetime).Well,thetruthis
everyelectionisimportant.MuchisatstakethisNovemberand
it is going to require complete political engagement from ABC
membersandtheiremployeestoensurecandidatesthatsupport
freeenterpriseandopencompetitionaresenttostatecapitalsand
Washington,D.C.,nextyear.
In November, all 435 members of the U.S. House of
Representativesand36U.S.Senateseatsareupforelection;notto
mention36governor’smansionsandthousandsofstatelegislative
racesineverystate.
In Washington, D.C., Speaker John Boehner (R-Ohio)
currentlycontrolsafragile17-seatmajorityintheU.S.Houseof
Representatives.Amazingly,lessthan30ofthe435congressional
districtsacrossthecountryareconsideredtobecompetitive.That
meanslessthan7percentofthoseraceswilldecidewhichparty
holdsthespeaker’sgavelnextJanuary.
While maintaining a pro-business majority in the House is
essential, all eyes will be on the U.S. Senate. Sen. Harry Reid
(D-Nev.)currentlycontrolsasix-seatmajority,andanywherefrom
eight to 12 Senate races are considered competitive. In short,
thoseraceswilldeterminecontroloftheU.S.Senate.
• Montana,SouthDakotaandWestVirginia:Alloftheseseats
NATIONAL ELECTIONS OVERVIEwAll Elections are Important
© iStock.com/Yin Yang
www.abcmi.com FALL 2014 23
articlearticleF E A T U R E
are currently held by long-serving Democrats who have
decidedtoretire.Allthreestatesoverwhelminglyvotedfor
MittRomneyin2012.AssumingtheRepublicancandidates
rungoodcampaigns,theyshouldwininNovember.
• Alaska,Arkansas,Colorado,LouisianaandNorthCarolina:
In each of these states, the Democrat incumbent must
defendvotesonthePatientProtectionandAffordableCare
Act(PPACA)andtheAmericanRecoveryandReinvestment
Act. Current polling and credible candidates on the
Republicansidehaveputalloftheseracesinthe“toss-up”
category.
• IowaandMichigan:Thesearethetwooutliers.Bothstates
went for President Obama in 2012, but currently have
Republicangovernorsandlegislatures.Republicansappear
to have drawn the better candidates in their respective
races;bothhaveputupfemalecandidatesrunningagainst
congressmenwhovoted for thePPACAand the stimulus
package while serving in the U.S. House. In Michigan,
ABChasendorsedformerMichiganSecretaryofStateTerri
LynnLand(Republican).
ThereisaveryrealchanceforsignificantRepublicangainsthis
November.Strongfundraisingnumbersandconsistentmessaging
willbethekeystovictory.AssociatedBuildersandContractors’
politicalactioncommittee(ABCPAC)hasraised$1.2millionin
2013-2014andcontributedmorethan$1milliontomorethan
240pro-businesscandidatesthiselectioncycle.
Inaddition,ABC’sFreeEnterpriseAlliance--whichadvocates
for small businesses and open and fair competition through
research andnationalmedia campaigns -- has a robustplan in
placeforthisfall.
SeetheABCvotessidebarforinformationonresourcesyoucan
usetobeinformedandpreparefortheupcomingelection.MM
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Following are a few easy things individuals can do to prepare for yet another important election:• be on the lookout for the re-launch of abcvotes.com—a nonpartisan online election resource for companies and their employees.
• Download the abc action app for iPhone and android smartphones. This cutting-edge app is a “starter kit” to getting involved in the issues that impact the construction industry.
• Visit FreeEnterprisealliance.org and share the link with employees and colleagues. while there, consider making a contribution to the Free Enterprise alliance to help impact the outcome of the November elections.Talking about politics can be prickly, but
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CONTRACTORS: HOw THE SUPREME COURT’S AFFIRMATIVE ACTION DECISION IMPACTS YOU
By: keith e. eastland and kelley e. Stoppels, Miller Johnson
Lastspring,theUnitedStatesSupremeCourtreversedalower federal court decision and reinstated Michigan’sconstitutional amendment banning affirmativeaction in admissions to our state’s public universities.
Schuette v. Coalition to Defend Affirmative Action, 134 S.Ct.1623 (Apr. 22, 2014). Although much of the media attentionsurroundingthiscasehasfocusedontheimpactofthisdecisiononcollege admissions,merit shopcontractors shouldnote thatthe constitutional provision adopted in 2006 also prohibitsdiscriminationorpreferentialtreatmentonthebasisofrace,sex,color,ethnicityornationaloriginin“publiccontracting.”
Inshort,althoughthe“publiccontracting”partoftheamendmentwasnotchallenged,theSupremeCourt’srecentdecisionservesasareminderthattheStateofMichigan(includinganycity,politicalsubdivision,county,publiccollege,publicuniversity,communitycollege, school district or similar government instrumentality)cannotgrantpreferencesinawardingpublicconstructioncontractsbased on the prohibited characteristics above, provided thatgrantingsuchpreferencesarenotrequiredbyfederalmandatestopreservefundingfortheproject.
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Michigan’s Affirmative Action BanTheMichiganvoterinitiativeleadingtothe2006constitutional
amendment (Proposal 2) was approved by 58% of Michigan’svoters,andourstate’sconstitutionwasamended to include thefollowingrestrictionswithrespecttoaffirmativeactionprograms:
Section 26 Affirmative Action programs(1) The University of Michigan, Michigan State University,
WayneStateUniversity,andanyotherpubliccollegeoruniversity,community college, or school district shall not discriminateagainst,orgrantpreferentialtreatmenttoanyindividualorgroupon the basis of race, sex, color, ethnicity, or national origin intheoperationofpublicemployment,publiceducation,orpubliccontracting.
(2)Thestateshallnotdiscriminateagainst,orgrantpreferentialtreatment to any individual or group on the basis of race, sex,color, ethnicity, or national origin in the operation of publicemployment,publiceducation,orpubliccontracting.
(3)Forthepurposesofthissection“state”includes,butisnotnecessarilylimitedto,thestateitself,anycity,county,anypubliccollege,university,orcommunitycollege,schooldistrict,orotherpoliticalsubdivisionorgovernmentalinstrumentalityoforwithintheStateofMichigannotincludedinsub-section1.
(4) This section does not prohibit action that must be takento establish or maintain eligibility for any federal program, ifineligibilitywouldresultinalossoffederalfundstothestate.
After this constitutional amendment passed, groups in favorof using affirmative action more broadly in the context ofcollegeadmissionsfiledafederallawsuitattemptingtoblockitsimplementation. In2008,a federaldistrictcourt rejected thisattempt and upheld Section 26 as a valid restriction requiringneutralityinpubliceducation,employment,andcontracting.
In 2012, however, the United States Court of Appeals forthe SixthCircuit changed course, ruling8 to7 thatMichigan’sconstitutionalamendmentrestrictingaffirmativeactionincollegeadmissions violated the federal Constitution’s Equal ProtectionClause.ThecasethenmovedtotheUnitedStatesSupremeCourt.
the Supreme court’s decisionOn April 22, 2014, the Supreme Court reversed the split
decisionoftheSixthCircuitandreinstatedtheaffirmativeactionrestrictions on Michigan public colleges and universities underSection26.
Indoingso,theSupreme Courtruledthatthelowercourtlackedauthoritytosetasidethe2006provisionbecauseitreflectedthechoiceofMichigan’scitizens.TheCourt’smajorityexplainedthat“thiscase[was]notabouthowthedebateaboutracialpreferencesshouldberesolved.”Rather,thequestionfortheCourtwas“whomayresolveit.”
The Supreme Court made clear that this question could bedecided by the citizens of each state through the electoral andpoliticalprocess.Morespecifically,byapprovingProposal2and
26 FALL 2014 micHiGaN mERiT
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addingSection26totheMichiganconstitution,theCourtfoundthat“Michiganvotersexercisedtheirprivilegetoenactlawsasabasicexerciseoftheirdemocraticpower,bypassingpublicofficialstheydeemednotresponsivetotheirconcernsaboutapolicyofgrantingrace-basedpreferences.”
practical impact: What does this Mean for Michigan construction contractors?
Thereareafewimportant“take-aways”fromthisdecisionformeritshopcontractors.
First, theSupremeCourt’sdecisionconfirmsthat theStateofMichigan,including“thestateitself,anycity,county,anypubliccollege, university, or community college, school district, orother political subdivision or government instrumentality” maynot discriminate or give preferences in awarding constructioncontracts on the basis of race, sex, color, ethnicity, or nationalorigin. Any state rules, processes, or bidding procedures thatgrantsuchpreferentialtreatmentareunlawful.
A good example of such a policy was the “Equal BusinessOpportunity-ConstructionPolicy” of theCity ofGrandRapids.That policy, which was found unlawful in a 2007 Attorney
General Opinion Letter, applied to contractors submitting bidsto the City on construction projects of $10,000 or more. TheCity’s process discounted construction bids for DisadvantagedBusiness Enterprises (“DBE’s”). DBE was defined as “women,Black Americans, Hispanic Americans, Native Americans” andpersonsofotherethnicgroupswhoarepresumedtobe“sociallydisadvantagedindividuals.”TheAttorneyGeneralfoundthatthisprocesswasimproperundertheconstitutionalbanonaffirmativeaction because it provided an advantage to certain contractorsbaseduponaprohibitedfactor.Suchpolicies,andotherslikeit,continuetobeunlawfulinMichigan.
Second,contractorsshouldrememberthatMichigan’sbanonaffirmativeactioninpubliccontractinghasimportantexceptions.Mostimportantly,therestrictionsapplytostatepubliccontractingonly.Theydonotprohibitaffirmativeactiononafederallevel,suchasmayberequiredundertheDavis-BaconActorpursuanttoExecutiveOrder11246.
The constitutional provision carves out from its restrictionsanyaction“thatmustbetaken[byastateorlocalgovernmentalentity]toestablishormaintaineligibilityforanyfederalprogram,ifineligibilitywouldresultinalossoffederalfundstothestate.”
www.abcmi.com FALL 2014 27
DevelopmentDevelopmentB U S I N E S S
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P.O. Box 130230 • Ann Arbor, MI 48113Phone: 734.769.8545 • Fax: 734.769.8546
www.qualityairesystems.com • [email protected]
Authorized Dealer
Residential • Commercial • Industrial
Thus, the ban does not apply to state bidding procedures orpoliciesifthoseproceduresorpoliciesmustcomplywithfederalaffirmativeactionrequirementsasaconditionforcontinuingtoreceivefederalfunding.
Third, the constitutional ban does not prohibit the statefrom granting preferences based on other lawful factors orcharacteristics.
Specializing in the Construction Industry for More Than Seven Decades crowehorwath.com/construction
Audit | Tax | Advisory | Risk | Performance
or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and
Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2014 Crowe Horwath LLP CON14015
Shouldyouhavequestionsabouta specific situationor statepolicyorbiddingprocedure,weencourageyoutocontactyouremploymentlawcounseloroneoftheauthorsbelow.MM
Keith E. Eastland and Kelley E. Stoppels are attorneys with Miller Johnson, an ABC member law firm in Grand Rapids. Keith can be reached via email at [email protected] and Kelley can be reached at [email protected].
28 FALL 2014 micHiGaN mERiT
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Randy K. TarzwellPresident
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512 W. Buttles StreetMidland, MI 48640
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affairsaffairsG O V E R N M E N T
ABC of Michigan presented its prestigious Liberty Award toMichigan’sAttorneyGeneralBillSchuetteonJuly25attheABC-GreaterMichiganChapter’sannualgolfoutingevent,heldattheSawmillGolfCourseinSaginaw.
Schuette, who was elected as the state’s Attorney General in2010,hasamassedanimpressiverecordwhileinoffice.BecauseSchuette’sjobistorepresentthestateinanycourtproceedings,hehasbeenabletoputupastrongandspiriteddefenseofMichigan’sbanongovernment-mandatedProjectLaborAgreements(PLAs),defending the Fair and Open Competition in GovernmentalConstructionAct.SchuettehasalsotakenastronginterestintheAffordableCareAct(Obamacare),submittinganamicusbrieftotheU.S.SupremeCourtarguingthatObamacareviolatestheU.S.ConstitutionbyimproperlyallowingtheInternalRevenueServiceto allow tax credits for buying insurance through the federallyestablishedexchange.
HisstatedmainfocusisasMichigan’s“VoiceforVictims”andhefillsthatroleverywell,advocatingforMichigan’scitizensoneverythingfromequalopportunityforbothunionandnon-unioncontractorsongovernmentjobs,toendinghumantraffickinginMichigan.
ABC of Michigan CEO Chris Fisher presented Schuette withtheawardandnotedthat“AttorneyGeneralSchuettehasastrongrecord of championing the rule of law and equal opportunityforall.MichiganneedsAttorneyGeneralSchuettetoprotecttherightsofMichigancitizens.”
Prior tohis election asMichigan’sAttorneyGeneral in2010,Schuette served in theU.S.Congress, asMichigan’sDirectorofAgriculture, in the Michigan State Senate, and as an appellatejudge.Healsopracticedlawintheprivatesector,andhasbeenappointedtonumerouspositionsinthepublicsector.Schuette’sDemocraticopponentinNovemberwillbeMarkTotten,anMSUlegalprofessorwhohasbeenendorsedbyeverymajorunioninthestate.
ABChasendorsedSchuetteinNovember’selection.MM
ATTORNEY GENERAL SCHUETTE RECEIVES ABC OF MICHIGAN LIBERTY AwARD
www.abcmi.com FALL 2014 29
Daniel ReesEstimator/Systems Designer
NICET Level IIICertification No. 82181
3735 Plaza Dr.Ann Arbor, MI 48108
Office: (734) 761-7767Fax: (734) 761-5388Cell: (313) 363-7756
Email: [email protected]
Automatic Sprinkler Systems • Design • Installation • Repair
X-CALIBURMETAL ROOFING & WALL PANELS
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Patrick Faint, General [email protected]
27400 Northline RoadRomulus, MI 48174
Phone: (734) 942-3071Cell: (248) 320-8208Fax: (734) 942-3075
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5701 Safety Drive, Belmont, MI 49306 • Phone: 800-886-1614 • Fax: 616-784-1140Fire Sprinklers Save Lives www.brigadefire.com
Associated Builders and Contractors of Michigan (ABC)commended the Livingston County Board of CommissionersforanAugust4decisionrepealingajob-killingprevailingwagemandateoncounty-fundedconstructionprojects.
“Livingston County commissioners have chosen to stand upforpublicaccountabilityandaffordabilityinconstruction,”notedChris Fisher, ABC of Michigan President & CEO. “LivingstonCounty taxpayers now have a more competitive constructionmarket,andthatinturnwillcreatemorejobsandopportunitiesinLivingstonCounty.”
Michigan prevailing wage calculations exclusively mirrorunion agreements regardless of whether the workers on thejobbelongtoaunion,ignoringthefactthatonly18percentof
ABC COMMENDS LIVINGSTON COUNTY FOR REPEALING PREVAILING wAGE REqUIREMENTS
construction workers chose to belong to a union in Michigan.Prevailingwagemandatestypicallyinflatethecostofconstructionlabor by 40-60 percent more than the already-high marketwage. ABCencouraged theLivingstonCountyBoard to repealthe local mandate, pointing to studies that indicate prevailingwageincreasescostsunreasonably,infringesupontheintegrityofthecompetitivebiddingprocess,anddeniestaxpayersthefiscalaccountabilitytheydeserve.
“We look forward to continuing to see growth in LivingstonCounty now that the costly prevailing wage mandate has beenremoved,”commentedFisher.
Livingston County now joins a super-majority of Michigancountieswhodonothaveaprevailingwagemandate.MM
30 FALL 2014 micHiGaN mERiT
Michigan Construction Job Center connects construction talent with great Michigan companies. Job seekers — upload your resume today so your talents and skills can gain you great new job opportunities. Construction employers — access this targeted and qualified pool of talent by advertising your jobs on the site or searching resumes by skill types.
Employer Features• An affordable option that gives you the right candidates• Easy tools to post your positions• Search the resume bank — pay only for resumes of job seekers
interested in your position• Set-up pre-screen filters to deliver the best candidates directly to you• Anonymity available if desired
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Need more information? Call us at 517.853.2545 or email [email protected].
Now there is a new resource for construction hiring and job opportunities in Michigan, the Michigan Construction Job Center.
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indexindexA D V E R T I S E R
ABCSelfInsuredWorkersCompensationFund...................... 32
AISEquipment........................................................................ 27
AndrewsHooperPavlik,PLC.................................................. 20
AnnArborFireProtection....................................................... 29
ArrowConcreteCutting.......................................................... 25
ASHASafety............................................................................ 12
BaileyAgency.......................................................................... 28
BCTBenefitsPlan.................................................................... 15
BlackstarBuildingGroup......................................................... 15
Brigade FireProtection............................................................ 29
BrothersandBricks................................................................. 14
CapitalSteel&BuildersSupply............................................... 29
CDIConstruction.................................................................... 13
CommonwealthAssociates...................................................... 11
CriticalBusinessAnalysis........................................................ 28
CroweHorwathLLP................................................................ 27
DesaiNasrConsultingEngineers............................................. 12
DJMalteseConstructionLLC.................................................. 29
EfficientCraneSolutions......................................................... 11
EnterpriseFleet....................................................................... 12
ExcelElectric,Inc.................................................................... 19
FisherCompanies.................................................................... 19
Fonson,Inc.(GBMRecycledConcrete)................................... 12
G&GElectric........................................................................... 11
GarberChevrolet..................................................................... 18
GrandEquipmentCompany................................................... 12
GreatLakesIndustrialSupplyCo.,Inc.................................... 13
GreatLakesRoofing&InsulationSystems,Inc....................... 13
GreatLakesSafetyTrainingCenter.......................................... 11
GreatLakesStriping&Sealing................................................ 31
GuyHurleyBlaser................................................................... 21
HDSupplyWaterworks........................................................... 19
HeritageAutomall................................................................... 18
IndependenceCommercialConstruction,Inc.......................... 17
JacksonAssociates,Inc............................................................ 24
JBSContracting,Inc................................................................ 19
JGMMachineryMovers&Erectors,Inc.................................. 23
JimcoFireProtection............................................................... 13
JWFieldGrading&Excavating.............................................. 13
K&SPlumbingCo.,Inc......................................................... 19
LaborReady,Inc...................................................................... 11
LighthouseInsuranceGroup................................................... 20
LiquidCalciumChlorideSales................................................ 18
Loomis,Ewert,Parsley,Davis,Gotting,PC.............................. 11
MannConstruction................................................................. 18
MerloConstructionCo.,Inc.................................................... 25
MidMichiganMaterials,Inc.................................................... 19
PamarEnterprises.................................................................... 19
PlanteMoran........................................................................... 17
PMTechnologies..................................................................... 25
ProView(The Blue Book Building & Construction Network)........ 26
QualityAireSystems............................................................... 27
RapidFireProtection............................................................... 24
RockProducts......................................................................... 25
RWMercer.............................................................................. 11
ScheidelElectric...................................................................... 14
ScientificBrake&Equipment................................................. 19
SelleckArchitecturalSales....................................................... 18
SidingWorld............................................................................. 2
SummitElectric....................................................................... 31
Thermico,Inc.......................................................................... 26
TimpsonTransport,Inc........................................................... 12
TitanInteriors......................................................................... 27
TradesmenInternational.......................................................... 22
ValentiTrobecChandler.......................................................... 21
ValleyElectricalContractors.................................................... 25
WaltonAgency........................................................................ 25
WaterstoneInsuranceAgency.................................................. 26
WelchTile&MarbleCompany............................................... 21
Wm.MolnarRoofing,Inc........................................................ 11
X-CaliburSheetMetal............................................................. 29
GREAT LAKES STRIPING & SEALING, INC.P.O. Box 283 • Traverse City, MI 49685 • P: 231-946-8269 • F: 231-946-6044 • C: 231-218-5605
Since 1972
BRUCE BIDDINGER - PRESIDENT [email protected]
www.greatlakesstripingandsealing.com
COMPLETE ASPHALT MAINTENANCESealcoating • Infrared Repair • Crack Filling • Parking Lot Striping • Parking Lot Sweeping
FREE ESTIMATES MEMBERWESTERN MICHIGAN
ummitS electric, inc.Commercial & Industrial Contractors
2544 Acacia Troy Michigan 48083248-689-0300 689-1750 fax
www.summitelectric.ws
Since 1983
Michigan Construction Job Center connects construction talent with great Michigan companies. Job seekers — upload your resume today so your talents and skills can gain you great new job opportunities. Construction employers — access this targeted and qualified pool of talent by advertising your jobs on the site or searching resumes by skill types.
Employer Features• An affordable option that gives you the right candidates• Easy tools to post your positions• Search the resume bank — pay only for resumes of job seekers
interested in your position• Set-up pre-screen filters to deliver the best candidates directly to you• Anonymity available if desired
Job Seeker Features• Find open positions in construction• Free for job seekers• Get your resume in front of construction companies who are hiring• Increase your visibility in the industry• Anonymity available if desired• Let us do the job searching for you by setting up email job alerts
Need more information? Call us at 517.853.2545 or email [email protected].
Now there is a new resource for construction hiring and job opportunities in Michigan, the Michigan Construction Job Center.
MICHIGAN CONSTRUCTION
Where Great Contractors Hire Great People
C E N T E R
Visit us at www.MIConstructionJobCenter.com
EMPLOYERS: ONE FREERESuME DOwNLOaD
Use coupon code “RESUME” toreceive one free resume download with your
30- or 60-day job posting.
32 FALL 2014 micHiGaN mERiT
PRESoRTEDSTaNDaRD
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