July 2009 RMSCA Newsletter - Rocky Mountain Steel Construction ...

Rocky
Mountain
Steel
Construction
Association
Inside this issue:
The President’s
Corner
1
Steel Detailing 1
AISC Design Guide 3
The Adverse
Impact of
Reduced
Engineering
6
Rough Seas 8
SteelDay
Bonding Beware 12
Hosting A SteelDay
Event
11
14
RMSCA
3575 South Sherman St
Suite 3
Englewood, CO 80113
Phone 303.991.2637
Fax 303.759.8286
LFoster@RMSCA.org
www.RMSCA.org
July 2009 ~ RMSCA Semi Annual Newsletter
The President’s Corner ~ Rob Wilson
Many times subcontractors
must pre-qualify for projects
before they may submit a
proposal. The prequalification
process that many owners
and general contractors
require is a necessary tool to
minimize their risk for the
construction project, by insuring
that only experienced
and competent subcontractors
with the necessary financial
capability and resources
are chosen to participate
on the construction
team.
But, how many subcontractors
minimize their risk by
pre-qualifying the general
contractors and owners that
they work for? According to
a study conducted by the
Construction Financial Management
Association, subcontractors
assume the
greatest risks, and receive
the smallest rewards, of all
‘Advancing Steel
Construction In the
Rocky Mountain Region’
participants in the construction
project. Knowing that,
isn’t it wise to take the necessary
steps to insure that
you reduce your risk? Isn’t
it reasonable to pre-qualify
clients with whom you do
business?
Steel Detailing ~ Shad Drohman, FRCC Student/KL&A, Inc.
Steel Detailing is an essential
aspect to the Steel Construction
Industry. A detailer
must be precise, clear, and
to the point. When first introduced
to Steel Detailing, I
was quick to realize that
constancy and clarity are
essential to the project
team. My employer, KL&A
Structural Engineers and
Builders of Loveland Colorado,
approached me with
the opportunity to be one of
the first students to attend
a new Steel Detailing program
at Front Range Community
College Campus located
in Westminster Colorado.
The course outlined
everything from technical
terminology, the AISC manual,
methods of developing
details, and professional presentations.
The course was
taught by Jerry James of
Structural Services. While
attending class, I was able to
take on projects as a whole
While contractual terms are
generally considered to be the
most significant source of risk
that subcontractors assume,
the primary driver of success
or failure on a project depends
on how all parties to
the contract conduct themselves
in their day-to-day operations.
So a careful selection
of those companies we
conduct business with, by using
a well planned evaluation
tool, is critical to success
The Foundation of the American
Subcontractors Association
(FASA) has published an
excellent resource, The General
Contractor Factor which is a
(continued page 2)
finished product. This was
an important part in bridging
the gap between my training
in the office and real life solutions
in the shop and field.
I have learned that time is
valuable, and every step of
the project is critical to
meeting budget requirements.
The knowledge and
experience I have gained
while attending this program
will help me succeed and
further my career in the
RMSCA 2875 and West oversee Oxford all Ave., aspects #3, Englewood, of a CO steel 80127 industry.
303.991.2637 fax 303.759.8286 Email Membership@RMSCA.org Website www.RMSCA.org

2
August 14, 2009
RMSCA Annual Golf
Tournament
1:00 p.m. shotgun
Thorncreek Golf Course
13355 N Washington
Thornton, CO
President’s Corner ~ cont’d
guide to analyzing the contractual
and business practices
of general contractors.
This guide is available
to all members of the
American Subcontractors
Association through the
members section at
www.asaonline.com. This
guide can show you how
to develop risk criteria
resulting in a rating system
and evaluation form for
general contractor’s business
practices.
The FASA guide starts
with a discussion of characteristics
that are important
to defining a quality
contractor business organization.
These include:
♦ Reasonableness. Does
the contractor consistently
strive to reach reasonable
resolution of
questions or issues, or
does the contractor
merely impose unilateral
will on subcontractors?
♦ Honesty and Trustworthiness.
Does the
contractor honor agreements
and commitments?
♦ Fairness. Does the
contractor seek to treat
all parties fairly and equitably,
or rather exercise
leverage without regard to
its impact on subcontractors?
♦ Pertinent Experience.
Has the contractor
successfully performed the
kind of construction work
involved in this project?
♦ Technical Competence.
Does the contrac-
tor have the technical experience
and expertise to
successfully manage the
project and integrate the
subcontractors’ work?
♦ Financial Capability.
Does the contractor have
the financial capability to
fulfill its obligations to subcontractors?
♦ Capable Central and
Project Management.
Does the contractor have
the necessary people skills
and management experience
in both its home office
and at the jobsite?
♦ Sufficiency of Available
Resources. Can the
contractor coordinate and
marshal the equipment and
facilities required by the
project?
♦ Team Spirit. Does the
contractor approach project
management as a team
effort involving all team
members including subcontractors
and suppliers?
♦ Professionalism. Does
the contractor have a
reputation for approaching
each project as a professional?
Contractors with favorable
characteristics provide for
a relationship that will reduce
a subcontractor’s risk
through lower costs due
to 1) effective project management
and efficient coordination
and scheduling, 2)
prompt payments because
disputes that waste valuable
project management
and supervisory resources
are minimized, 3) improved
bonding capability and financial
capacity, and 4) absence
of litigation. We all prefer to
be associated with a successful
project rather than suffer
the damages to our reputation
resulting from association
with a failed project. A
strong relationship with a
quality contractor greatly
enhances the chances of a
successful project.
Construction is hard enough
without having to sustain the
damages that can result from
working with poor quality
contractors. Smart subcontractors
assess the risks and
determine if pricing needs to
be adjusted to address those
risks; negotiate for subcontract
terms and conditions
that reduce those risks; and /
or determine whether to
submit the bid or walk away.
Food for thought: how do
you handle your relationships
with your suppliers?

3
AISC Design Guide No. 23, Constructability of Structural
Steel Buildings, Now Available
Design professionals now have a
valuable new resource on constructability:
AISC Design Guide
No. 23, Constructability of Structural
Steel Buildings by David Ruby, P.E.,
chairman of Ruby + Associates.
This publication from the American
Institute of Steel Construction addresses
constructability as a design
concept that takes advantage of
steel materials, fabrication and installation
expertise early in the design
phase.
"I consider this Design Guide to be
both the culmination of past lessons
learned and the catapult to
the future relevance of our profession,"
said Ruby. "The Design
Guide details what we have learned
over the past several decades in all
aspects of design and construction.
It is a guide that brings together
voices of the steel industry and
identifies the different disciplines,
tradespeople and skill sets required
to make a project succeed with
this philosophy. I am an ardent believer
in the value of constructability
- the integration of the design
and construction processes aimed
at maximizing simplicity, economy
and speed of construction.
"With the design community and
construction industry facing intense
economic pressure, the focus will
be on the bottom line,” continued
Ruby. All members of the construction
team will be under increased
pressure to complete projects
faster and more efficiently.
We’ll be called upon to thoroughly
understand holistic project issues
and ask the right questions that
positively impact overall project
objectives. By focusing on constructability,
our clients can count
on us to make their projects not
only possible, but more economical."
The Design Guide highlights constructability
as a design philosophy
that helps position the structural
engineering profession as an evolutionary
asset to the client and construction
community. It encourages
the streamlining of the planning,
design and construction sequence
using concept development, design/BIM
and construction processes.
The publication covers specific
areas such as: early involvement,
the design process, issues
related to the structural steel framing,
detailing and fabrication, steel
erection, and special constructability
issues (e.g., anchorage to concrete,
camber, and tolerances).
“This Design Guide explores an
approach that will help all parties to
a contract – owners, designers, constructors,
everybody,” said Charles
J. Carter, AISC vice president and
chief structural engineer. “It highlights
the benefits of early involve-
ment and a team-based approach,
where the constructability of the project
is the guiding motivation for design
and construction decisions. It
shows how constructability can result
in more creative and relevant solutions
that bring enhanced value to clients.”
Design Guide No. 23 is available as a
free download to AISC members from
www.aisc.org/ePubs and at a price of
$60 for nonmembers. An ePubs subscription
is part of AISC's member
benefits packages and includes access
to more than 10,000 pages of AISC
publications in electronic format. AISC
also provides freePubs for all of its
website visitors. The freePubs section
comprises AISC’s technical resources
such as specifications and codes, and
Modern Steel Construction magazine
articles.
For more information contact:
Tasha O'Berski
Communications Department
(312) 670-5439
oberski@aisc.org

4
Welding Taken for Granted ~ Ralph Seeley, Mountain Steel
Welding processes have come a
long way since forge welding
was performed in a blacksmith
shop where the metals were
pounded together until they
bonded. The electric arc was
discovered by accident in 1801
while experimenting with electricity.
It was not until just
prior to 1900 that arc welding
was developed and used in a
few industrial applications several
years later. The first all
welded bridge was erected in
Canada in 1925 and the first all
welded merchant ship was built
in 1930. Submerged-arc welding
using a continuously fed electrode
was developed in 1935
and being used industrially by
around 1940. MIG welding
(GMAW) was first introduced
in 1948 with flux cored arcwelding
(FCAW) following close
behind in 1958.
By the 1960’s, arc welding had
achieved a relatively high level of
development. But, there were
questions as to whether or not
the quality of the weld would be
sufficient to support the particular
applications for which it was
being used. It was during this
time that considerable attention
was given to non-destructive
testing to assure quality requirements.
During World War II, President
Roosevelt sent a letter to Prime
Minister Winston Churchill,
stating that we had developed a
welding technique which enables
us to “construct standard merchant
ships with a speed unequaled
in the history of merchant
shipping." The technique
the President was referring to
was submerged arc welding,
which was capable of joining
steel plate as much as 20 times
faster than any other welding
process at that time.
In 1943, no fewer than 17 shipyards
in the United States were
building Liberty ships for the war
effort. In June of 1943, California
Shipbuilding Corporation broke
the U.S. record that month by
delivering 20 Liberty ships. During
this time an alarming number
of Liberty ships were lost due to
a problem called brittle fracture.
The ships literally broke in half.
At first, many blamed welding,
but history would later prove
that the real cause was because
steel was found to have high sulfur
and phosphorus content the
caused fractures under a combination
of low air temperature
and heavy seas.
This and other instances were
raising doubts as to the reliability
of welds used in applications
where strength was crucial. The
American Welding Society
(AWS) was founded in 1919 as a
nonprofit organization with a
goal to advance the science,
technology and application of
welding. The official publication
of the American Welding Society
has disseminated the latest in technical
knowledge on the state of
welding since 1922. Since this time
AWS has brought together volunteers
from throughout the steel
community to serve on committees
to provide the standard to
which all welding in the U.S. should
be performed in order to maintain
metallurgical and structurally sound
welds.
Today some fabricators and even
some engineers still do not totally
understand the ramifications and
liability assumed from not following
the standards set up by AWS.
Some still live in the pre World
War II era where all you have to
do is pour weld into the joint and
it will hold. The industry standard
today requires compliance with the
appropriate code under AWS. Literally
all project specifications require
compliance to this code.
Even if the requirement was not
specified, the standard should be
followed to assure sound welding
procedures. The penalties from
weld failure could be catastrophic.
From lost of life to the loss of a
business, the list is endless.
AWS requires all manufacturers of
electrodes to perform a test that
provides results for the performance
of the as welded electrode.
Only those manufacturers can
state that their electrode complies
with AWS requirements for ultimate
tensile strength, yield
Cont’d next page

5
Welding ~ cont’d from previous page
strength, elongation, modulus
of elasticity, compressive
strength, shear strength, fatigue
strength, impact strength and
hardness. It is often misunderstood
that the structural code
of AWS, D1.1 allows the use of
the manufacturers recommended
parameters for performing
a weld. This is different
than ASME and D1.5 codes
which require individual testing
(PQR) to establish weld quality.
The manufacturers recommend
the parameters that were used
to establish the quality properties
noted above. By following
these parameters using calibrated
meters on
the welding equipment, the operator
can duplicate an already
established sound weld proced-
ure. In case a failure is encountered,
generally speaking,
compliance with these industry
standards should provide
protection from liability issues.
Compliance with these requirements
does not cost additional
time to perform or an
increase in cost of consumables,
as some believe. In fact,
the most efficient weld parameters
have already been
tested and recommended;
therefore following these requirements
actually reduces the cost of
labor and consumables.
Make no mistake, you cannot
always see issues that may
lead to a weld failure.
Under bead cracks and center
bead cracks cannot always
be identified by normal
visual testing.
Residual stresses from
welding exists in all joints
and if improperly performed,
a weld can fail due
to fatigue that increases the
risk of crack propagation
which in turn compromises
the integrity of welded
structures. Improper heat
input can cause imbrittlement
in the heat effect
zone. These issues are only
a few of the many issues
that can cause weld failure.
Reduce waste, enhance
quality, diminish risk, comply
with the code, you cannot
afford not to.

6
Sept 17, 2009
RMSCA/SEAC
Joint Breakfast
Meeting
7:30 a.m.
Renaissance Hotel
3801 Quebec Street
Denver, CO
The Adverse Impact of Reduced
Engineering ~ Patrick S. McManus, S.E., Rex I. Lewis
The worldwide economic
downturn places greater
demands on the design
and construction industries
as banks and other
lending institutions require
enhanced price definition
and cost control.
Financing will distribute to
projects that provide the
greatest value for the lowest
associated risk. Consequently,
little tolerance
for waste and inefficiency
can be expected in the
foreseeable future.
While productivity in
non-farm industries has
more than doubled in the
U.S. since 1964, labor
productivity in the construction
industry has
actually declined – despite
tremendous technological
advances. For
the structural steel industry,
one major culprit
is the inefficiency created
by poor or incomplete
connection design practice.
In 1995, William
Thornton, then Chief
Engineer with Cives Steel
Company, lectured at the
AISC National Steel Construction
Conference outlining
many costly shortcomings
with steel connection
design. Areas of
concern included poorly
defined load criteria for
the design of simple shear,
moment, and bracing connections,
as well as the
use (or abuse) of stiffener
and doubler plates in columns.
It can easily be argued
that nearly all of
Thornton’s concerns remain
present fourteen
years later.
Figure 1. Labor productivity index for US construction industry and all non-farm industries
(Source: Paul Teicholz, founding director of the Center for Integrated Facility Engineering at
Stanford University)
Continued next page

7
Impact of Reduced Engineering ~ cont’d from previous page
As an illustration, a peer review
was recently performed on a
group of three similar 180 foot tall
stair towers for an industrial project.
Connection design work was
delegated to the fabricator using
bracing forces in terms of a percentage
of brace capacity, and
gravity beam end reactions in
terms of 60% of the total uniform
load carrying capacity of the
beams. Seismic design provisions
and detailing did not apply.
It was determined that the worstcase
brace sizes, and thus connection
forces, were used throughout
the structures, resulting in overdesigned
lateral systems. The use
of 60% of the total uniform load
capacity for the gravity beams resulted
in some reactions approximately
650% of those determined
from the actual analysis. This
placed great limitations on connection
type, and any coping of the
beams necessitated doubler plates
to meet all necessary limit states.
Redesign allowed for significant
cost savings and vast simplification
of the connection details. Altering
the brace types and configurations
eliminated 22% of the braces and
approximately 170 associated connections.
Six hours of engineering
time resulted in potential savings
of nearly half a million dollars!
Uneconomical or incomplete connection
design information is predominantly
the result of the outdated
design-bid-build business
model, which nearly guarantees a
lack of communication between
the design and construction teams
until design is substantially com-
pleted. Without fabrication and
erection preferences from the construction
team, engineers are forced
to produce “one size fits all” designs
or design criteria. Many structural
engineers today typically expend the
fewest number of engineering hours
possible on each project, both to
maximize profitability and out of
necessity. Though other criteria
may come into play, engineers are
evaluated to some extent by fee.
Unfortunately, many of the entities
hiring engineers have little understanding
of the insignificance of the
engineering fee when compared to
the cost savings associated with a
complete and economical structural
design. Consequently, the segregation
between design and construction
eliminates an effective check
and balance between design decisions
and true cost.
In addition to the negative impact
reduced engineering effort has on
project economics, the potential
development of a dependence on
the typical details produced is an
inherent concern for engineering
firms. As design manuals and codes
continue to thicken with each edition,
it becomes increasingly difficult,
if not impossible, for an individual to
be an expert on all structural engineering
topics. An increased tendency
towards less flexible, typical
details, as well as an associated resistance
to deviating from those details
is understandable. However, the
competency to perform, or even
review, connection designs that fall
outside of a firm’s typical standards
is ultimately lessened. Thus, steel
connection design appears to slowly
be developing into a lost art in consulting
engineering.
The steel industry should not tolerate
decreased market share simply because
of poor structural design. Early
fabricator involvement in projects and
increased engineering time and fee
with feedback from the fabricator are
feasible solutions to the problem.
Design-build and design-assist construction
delivery are just two effective
methods of facilitating these solutions.
Both have the potential to reduce
project costs and add overall
project value.
This is a call to arms for the structural
engineering community - be the
frontrunners in an effort to educate
owners, developers, architects, and
construction managers. Eliminate
those who do not understand or appreciate
the value an integrated, quality
structural design brings to every
project. Those who fail to work towards
enhanced value could find
themselves among those eliminated.
Patrick S. McManus, S.E. was formally a
consulting engineer with Martin/Martin, Inc.
He is currently the head of the engineering
and detailing department at Puma Steel,
Cheyenne, WY
(patrick.mcmanus@pumasteel.com)
Rex I. Lewis is President of Puma Steel
(rex.lewis@pumasteel.com). Both individuals
have served terms as the Wyoming Director-
At-Large for the Design-Build Institute of
America

8
A short while ago, the
American Recovery
and Reinvestment Act
of 2009 made its
debut among much
pomp and circumstance.
Right off the
bat, the sheer size of
the $787 billion bill
caused concern.
"The legacy that this
generation will leave
for the next generation
is a grave concern.”
Robert Levey
General Manager
Commercial,
Gallatin Steel
Rough Seas ~ Dave Henley, Vulcraft
In the May 2009 edition of
Modern Metals Magazine, the
Article “Staring Down Adversity”,
by Lauren Duensing gathers
several executives from
steel mills and steel service
centers to comment on the
current outlook for the steel
business. While none of the
members of this Editorial Advisory
Board Roundtable are
structural steel fabricators,
their comments are interesting
and relevant. I referred to the
article for this writing and incorporated
several of their
comments here.
We are right in the middle of
the worst recession many of us
have ever known. Much of the
bad news and statistics follow
with “worst since 1982, or
1946, etc.
The entire U.S. economy is
singing the blues--a song filled
with recession, decline, slipping
stocks and unemployment.
From every news outlet, headlines
are filled with negative
language and images that are
contributing to unease among
consumers. Skyrocketing unemployment
numbers are fueling
the fire.
The early 80’s were bad, too.
Looking back on them at this
time, they do not seem quite as
bad to me as they did at the
time since I know in hindsight
that we did recover and begin
some very good economic
times. With the future always
being unknown, it’s difficult to
figure out just exactly what
it will be that will bring us
out of the current condition
and when it will occur.
Many theories are being
put forth and political economic
plans are being implemented.
Time will tell
whether any of them help,
or just make things that
much tougher down the
road.
For now, consumer confidence
has stopped it’s free
fall however most expect
the dismal times to continue
through the end of
the year. This causes us
consumers to stop spending
and start saving for the
tough times we anticipate
ahead.
As a result, "there’s a lot
of money out there and a
lot of people waiting to do
business," says Dave Hannah,
chairman and CEO,
Reliance Steel & Aluminum
Co., Los Angeles. "The real
catalyst that needs to occur
is confidence. People in
this country need to gain
some confidence in the
economy and feel good
about spending money, as
opposed to feeling threatened
that they’re going to
lose their jobs or that
money isn’t going to be
available to them, and they
can stop losing value in
their homes and 401(k)s.
All of that has destroyed
confidence in our economy.
The article does not point
it out directly, but we know
that our structural steel construction
business is dependent
on the rest of the businesses
in our economy to
fuel demand for us.
Hannah says there’s an indirect
impact for those that
aren’t so involved. The automotive
industry "consumes a
tremendous amount of metal
and creates a tremendous
amount of jobs, which gives
people the ability to spend
money on other things.”
Per Michael Hoffman, President
and CEO, Macsteel Service
Centers USA the housing
market is in the tank, as
we all know, and it’s having
an effect on washing machines,
dryers, HVAC and a
host of other supporting industries.
The automotive
industry is also going through
a difficult time, and naturally,
that’s having a domino effect.
We need an economic recovery
to herald a recovery
in the manufacturing industrial
sectors."
All this reduced demand in
other industries creates the
large unemployment numbers
we hear week after
week. As we heard from
Peter Wright of Gerdau
Ameristeel, we need to see
significant reduction in the
weekly new unemployment
filings before the downfall
will stop.
Continued next page

9
Rough Seas ~ cont’d from previous page
Dan DiMicco, chairman, president
and CEO, Nucor Corp., Charlotte,
N.C. points out that the real unemployment
numbers are higher than
the current statistics. "Today,
[unemployment is] not 8.5 percent;
it’s more like 16 percent because
they’re not counting all the people
who have given up looking for work,
and they’re not counting all the people
who are underemployed."
We all know talented colleagues
within this very organization of ours
who now find themselves seeking
new employment due to lack of
work at their former place of employment.
We all hope that in the
end they can look back and see that
it was a good turning point in their
careers as so many times happens.
The strategies of steel fabricators to
get through the recession vary
greatly. Some intend to keep their
shop going and retain as many employees
as possible. Others do not
see any reason to work for no gain
and would rather do something else
more fun for the same pay. Other
plans are somewhere between these
two.
Another issue is inventory depreciation.
This is an especially large concern
for operations that have large
inventories or for those whose business
it is to have inventories like our
service centers.
"That’s a bigger issue than even the
reduction in demand," says Hannah.
"All of us in the service center industry
have taken a tremendous
amount of value out of our inventories,"
Those wild swings in price are making
it tough to manage inventories.
Frank Kevane, President and CEO,
ThyssenKrupp Materials NA Copper
& Brass Sales Division says, "During a
time like this, you’ve really got to
manage your inventories. You really
have to manage your assets. Our real
investment is in inventory. It takes a
lot of diligence."
Lonnie Terry, president and CEO of
the North American Steel Alliance,
Laguna Hills, Calif., says the members
of the alliance are facing a "lack of
consistency and predictability that
has resulted in severe inventory devaluations.
Every time they turn
around, the price decreases."
The result is that steel service centers
are holding their inventories to
a very low level.
Stimulating demand—maybe
The federal government has decided
to spend a large amount of money to
stimulate the economy. Some of the
money will go to construction, however
little will go toward building
construction, so not much for us.
Regardless of that, if the money actually
does stimulate the economy as
the administration hopes, it may
eventually increase demand for building
construction.
A short while ago, the American Recovery
and Reinvestment Act of
2009 made its debut among much
pomp and circumstance. Right off
the bat, the sheer size of the $787
billion bill caused concern. "The legacy
that this generation will leave for
the next generation is a grave concern,"
says Robert Levey, General
Manager, Commercial, Gallatin Steel
Co.
"The much-ballyhooed stimulus package
really provides miniscule support
for infrastructure programs when
compared to the need that the U.S.
infrastructure requires," says Di-
Micco. "The U.S. civil engineering
society said that there’s an immediate
need for a $2 trillion spend over
the next five to 10 years with respect
to infrastructure needs. Roads,
bridges, water systems, utility systems
and the transmission grid are
falling apart." He points out that the
current amount covers just the basics
of infrastructure replacement
and doesn’t touch on needs such as
air traffic control. "So the $60 billion
that we’re spending is disappointing."
Will the plan help stimulate demand?
Hannah thinks so. "It’s got to help.
Maybe it doesn’t help as much as
we’d all like it to, but if confidence
gets restored and the government
starts spending money, maybe that
gives people more confidence to
start spending private money. The
only thing is the timing. When is this
really going to be felt? In the past,
it’s always taken quite a long time to
get spending started after bills have
been approved. Hopefully, this time,
it’ll be different."
A plan for survival
An end to the loss of manufacturing
in this country would be a very good
start to recovery. "People have finally
started talking about what
we’ve been talking about in the
manufacturing sector for the last
eight years. Somebody’s going to
build cars in this country. There
should be the opportunity for the
American car companies to be successful.
It’s important for our economy,
and it’s important for the nation
not to lose that manufacturing
Continued page 15

10
RMSCA Member Profile ~ Performance by Design, LLC
Performance by Design, LLC,
is a management consulting and
executive coaching company dedicated
to individual and organizational
effectiveness, business turnaround,
and profitable corporate
growth.
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karenstorsteen@comcast.net

11
Structural Steel Industry to Open its Doors SteelDay
On September 18, 2009, architects,
engineers, contractors and
others involved in the AEC
community will have the opportunity
to visit steel fabricators, mills,
service centers and other facilities
throughout the country. Currently,
more than 100 SteelDay
events are scheduled in 43 states
for the AEC community to tour
facilities and jobsites, attend educational
seminars, network, and
see how the structural steel industry
is contributing to build America.
SteelDay 2009, hosted by the
American Institute of Steel Construction
(AISC), is the first
planned annual national event
dedicated to providing the AEC
community with accessibility to
the latest happenings in the
structural steel industry. To announce
SteelDay 2009, AISC recently
launched a new web site
and portal, www.SteelDay.org,
which features information and
resources on where all of the action
is taking place, including a map
of the event locations and how to
attend or host an event.
"SteelDay is a unique chance for
participants to receive hands-on
education about the latest ad-
vances in the structural steel industry
and witness new technologies
first hand," commented Chris Moor,
AISC industry mobilization director.
"AISC holds tours and seminars
throughout the year in specific locations,
but we wanted to do something
on a grand scale where more
people could get these types of
learning experiences without having
to travel very far."
AISC member Lyman Zolvinski,
president of structural engineering
consulting firm, Zolvinski Engineering
in Michigan City, IN, attended an
AISC seminar at a service center last
year and hoped to see more
fabricator and mill tours become
available in his local area. "A wealth
of information can be obtained by
visiting service centers, fabricators,
and mills that can't be put into literature,"
said Zolvinski. "It also keeps
one up to date on the latest supply
and fabrication techniques and availability."
Zolvinski plans to attend a
steel mill tour in Indiana on
SteelDay.
During SteelDay, participants will
gain hands-on knowledge about
structural steel's key benefits and
features such as sustainability, availability,
speed and cost. They can also
observe how design affects
production and efficiency, advances
which have resulted in highperformance
projects that minimize
construction's impact on our planet
while also saving time and money.
About the American Institute
of Steel Construction
The American Institute of Steel
Construction, headquartered in Chicago,
is a not-for-profit technical
institute and trade association estab-
lished in 1921 to serve the structural
steel design community and
construction industry. AISC's mission
is to make structural steel the material
of choice by being the leader
in structural steel-related technical
and market-building activities, including:
specification and code
development, research, education,
technical assistance, quality certification,
standardization, and market
development. AISC has a long tradition
of service to the steel construction
industry of providing timely and
reliable information.
Contact:
Tasha O'Berski
Public Relations Specialist
American Institute of Steel
Construction
One East Wacker Dr., Suite 700
Chicago, IL 60601
P: 312.670.5439
oberski@aisc.org

12
Sept 18, 2009
AISC SteelDay
www.SteelDay.org
Bonding Beware ~
Traditionally, whenever
the construction industry
experiences a significant
downturn, such as the
one we are currently facing,
demand for surety
bonds increases. The reasons
for such are obvious.
Significant reductions in
available capital put tremendous
strains on all
construction related businesses;
whether for financing
new construction
or for financing subcontractors’
(subs’) operating
lines.
The traditional criteria
used for allocating and
obtaining surety bond
credit are: CASH; Character;
and, Capacity. An
emphasis is placed here
on cash since not only is it
the “oil” that enables the
entire “engine” to operate
smoothly and reliably, but
also because it is the first
item that surety bond underwriters
typically consider.
No construction firm can
function efficiently without
predictable cash flow.
This is especially true for
subs since they carry all of
the labor (paid out
weekly) and materials
(paid in 30 days) used in
Richard Forsberg, Forsberg Engerman Company
the actual construction
(i.e., they are the first
members of the “team”
to finance the actual construction
work). And
the fact that subs are the
last to receive payment
in the cash flow stream
makes them especially
vulnerable to “glitches”
caused by other parties
in the process. This fact
becomes even more
threatening during times
when not only are prices
for their work much
lower, but banks also
become less reliable and
more reluctant to issue
operating lines of credit.
Subs become more dependent
on quick receivables
turnaround time in
order to simply survive
the downturn.
In such an environment
bonding companies keep
a much closer eye on
their clients and the market.
Bonding can become
harder to obtain
while at the same time
more of it is being demanded.
What is the proper and
quickest solution to help
mitigate this situation?
Demand PROMPT, 30pay
of monthly billing,
and PROMPT, early release
of any withheld
earned revenues (monies
erroneously referred to
as “retainage”).
Of special concern to
subs being asked to provide
bonds during the present
financial crisis is the
problem of “condition
precedent” payment
clauses such as “paidwhen-paid”
and/or “paidif-paid”
language in their
contracts. In effect, such
language can be used to
force subs to continue
working when, through
no fault of their own, they
are not being paid for
their work. Such language
casts doubt as to whether
any party should ever attach
a bond obligation to
any contract involving
such onerous payment
exposures. This is especially
true in the present
financial environment.
Any sub signing a paidwhen/paid-if
contract, that
also requires the sub to
post a performance and
payment bond, can be assuming
responsibility for
performance of the work
whether or not funds for
Continued next page

13
Bonding Beware cont’d from previous page
that work are in-place, available,
or flowing. Over the years subs
have suffered immensely due to
this flaw in the construction design
and financing process. Work
that goes unpaid can create nightmare
situations for those unpaid
parties, and especially so when
bond obligations are added to the
mix.
The lesson here is simple:
NEVER provide a bond guaranty
without first seriously examining
all of the parties having an impact
on all aspects of your work as
well as the rest of the project.
Issues that happen elsewhere on
the project can sometimes have
major ramifications on payment
for your work.
In times like theses BE VERY
CAREFUL about making commitments
that include surety bond
guarantees.
Unless you can trust their professionalism
and integrity to the extent
of allowing them to have
some control over your assets
and bank operating line, you
should never provide a surety
bond.
If you do decide to provide a
bond, alter your contract to reflect
the seriousness of that obligation.
Insist on monthly pay,
with a right-of-remedy if terms
are not being met. Insist on less
or no “retainage” since your
bond is a fully indemnified, thirdparty
guaranty of your performance.
A Partnership
‘Building the Workforce
For The
Steel Construction Industry’

14
Hosting A SteelDay Event
Planning your activities for
SteelDay 2009
September 18, 2009
What does hosting a SteelDay event
involve?
SteelDay is all about interaction. It's
about building relationships with local
architects, engineers, contractors,
developers, owners and even
schools/community colleges.
• An event can be as simple as inviting
local architects to your facility, providing
coffee and snacks and showing
them your processes while inviting
questions.
• Some of our members are arranging
far more sophisticated events, partnering
up with other companies and
moving people from one facility in the
supply chain to the next.
•Those who can't host events have
offered their support for SteelDay by
calling local architects and engineers
to promote the industry personally.
Don’t over-think it! – SteelDay is
purely about facilitating relationships.
The point is for people to become
more aware of the steel industry in
their community and have a place to
go when they have questions.
Here are some ideas and examples of
various types of events:
Facility Tour
• The easiest type of event to plan!
• Set up a time to provide a tour of
your facility and free up a meeting
room prior to and after the tour for
questions, coffee, snacks or even
lunch.
Open House
• Offer your facility as ‘open to the
public’ all day so that people can take a
tour, network and ask questions at
their convenience.
• Another option to help add structure
is to offer official tour times
throughout the day to provide attendees
with some guidance and interaction.
Multiple Facility Tour
• Collaborate with other industry facilities
in your area so that attendees
can visit multiple types of facilities in
one day. Even offer transportation
between them.
• For example, offer a tour of your
fabrication company, followed by a
tour at a local galvanizing plant.
Jobsite Tour
• Arrange with the owners/
contractors/architects of a local steel
framed project for a tour of the job
site under construction.
Local Building Tour
• Is there an interesting local building
(steel framed of course!) where a
‘behind the scenes’ tour could be arranged?
An architecturally interesting
library, office building or LEED rated
structure? Or perhaps your own building
is architecturally significant?
Equipment Tour
• Do you own or use some interesting
equipment or machinery that would
be of interest? For example many
erection companies own and store
cranes and other equipment that is of
interest to visitors. Offer an equipment
tour, followed by a
presentation.
Presentation/Seminar/SteelTalk
• Sponsor and arrange a seminar or
presentation about structural steel
for architects, engineers or contractors,
or even local universities. We
can help arrange speakers and logistics.
The bottom line? Keep it simple or
be as creative as you want. The
theme for SteelDay is interaction. If
your event provides interaction and
networking opportunities, it is already
a success!
What now?
• If you have any further questions
about hosting an event, don’t hesitate
to contact AISC:
o Chris Moor
moor@aisc.org 813.401.1594
o Amanda Holik
holik@aisc.org 312.670.5433
•AISC would like to promote your
event as unique – we’ll provide an
individual flyer for each host outlining
your event details specifically.
•In order to get that flyer completed
the first step is to fill in
the ‘Event Details’ form at
www.SteelDay.org/EventDetails.aspx.
• We will then provide a flyer for
your approval to be posted at
www.SteelDay.org and wherever you
wish to post it/use it.

15
Rough Seas ~ cont’d from page 9
strength, innovation, and research
and development that
goes along with it."
According to Hoffman, we need
an economic recovery to herald a
recovery in the manufacturing
industrial sectors."
We have all heard many times of
how the economy will turn
around – it always has, and I do
believe that it will. We of course
need to keep living until it does,
so the real question is “When?”
Many of us heard Peter Wright
say that although it may stop getting
worse at some point, it will
be the fall of 2011 before we
start heading up again.
"We’ve seen some more activity
with quotes, inquiries and actual
business over the last month,"
Scott Kelley, President and CEO,
Service Center Metals notes.
"It’s been pretty moderate, and
it’s too early to tell if it’s a trend.
When we look at the end uses
for our products, it’s certainly
hard to tell what’s driving it because
there aren’t any indicators
that those particular industries
have bounced back."
"The longer the recovery takes
to evidence itself, the more likely
it is that the rebound will be substantial,"
says Hoffman. "Those
are inversely proportionate to
one another. I’ve heard a lot of
political pundits talk about the
fact that we may have seen the
end of this recession, we might
have bottomed, and we can see
some gradual up-creep between
now and the end of the year with
a more substantial rebounding.
I’m a little bit more conservative
and I don’t expect that we will
see a rebound as quickly as some,
but I do agree that the longer it
takes to recover, the quicker the
recovery will be."
"As most people today believe,
it’ll be years or a decade before
we get back to the same kind of
economic consumption and GDP
levels that we were at in 2006,
2007 and 2008," DiMicco says.
"It’s going to be a long haul out,
credit’s not going to be readily
available and a lot of people who
were consumers in the bubble
will no longer be consumers in a
credit-constrained world. Then
you’re going to see the need for
some potential massive restructuring
in a number of industries,
and steel may be one of them.
Steel consumption could be
strong if we get serious about
rebuilding our infrastructure so
we can provide a stronger future
for our children and grandchildren."
DiMicco says, "We’re in a
tough situation. It’s going to take
people rolling up their sleeves,
going back to basics and doing
the right things with respect to
how they spend and what drives
their spending. We need to get
back to making things in this
country again."
Go to the website for Modern
Metals Magazine to read the full
article. Here is the link: http://
www.modernmetals.com/common/
articlelink.asp?currentpage=8118
Getting back to the title of this
article, with one last thought:
“Smooth seas do not make
skillful sailors”

16
www.RMSCA.org
RMSCA Member ‘Online’ Directory
Is your company logo displayed on the RMSCA
Website, Membership Directory?
Members Only
Cost $75 per year
Contact the RMSCA office at 303.991.2637
2009 RMSCA
Board of Directors
President
Rob Wilson
K L & A, Inc.
Phone: 303.384.9910
Fax: 303.384.9915
Email: rwilson@klaa.com
Vice President
Dave Henley
Vulcraft Sales Corp
Phone: 303.757.6323
Fax 303.757.6324 Email:
dhenley@vulcraft-ne.com
Past President
Nick Miller
LPR Construction
Phone: 970.663.2233
Fax: 970.663.2073
Email: nmiller@lprconst.com
Secretary/Treasurer
Ralph Seeley
. – University Contact
Phone: 303.296.1631
Fax: 303.296.2427 Email:
ralphs@mountainsteel.com
Directors
Bill McGlue
Metro Steel Fabricating, Inc.
Phone: 303.297.9356
Fax: 303.297.2184
Email: bill@bandcsteel.com
Douglas Rutledge
KL & A, Inc.
Phone: 970.667.2426
Fax: 970.667.2493 Email:
drutledge@klaa.com
Maynard Trostel
Puma Steel – Engineering Liaison
Phone: 970.302.6925
Email: mtrostel@pumasteel.com
Greg McMichael
Norfolk Iron & Metal
Membership Committee
Phone: 303.710.0265
Fax: 720.733.8243
Email gmcmichael@norfolkiron.com
Bill Roth
R & S Steel Company
Membership Committee
Phone: 303.809.7279
Fax: 303.321.9677
Email: cinandbill@msn.com
Ex Officio Members
Frank Mitchell
Zimkor, LLC
Phone: 970.250.8561
Fax: 970.256.1944
Email: fmitchell@zimkor.com
Jules Van de Pas
Computerized Structural Design
Phone: 303.662.0664
Fax 303.662.0667
Email: jpv@csd-eng.com