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Who needs more sales? I bet you think you do.<br /><br />Everyone knows times are tough - especially small business owners. We\'re all scrambling to succeed.</p>\n<p>Here\'s something everyone doesn\'t know: More sales may not be what you need to survive Come with me as we take a trip down a typical income statement to see what I mean. Here\'s last year\'s income statement for the fictional Joe\'s Computer Repair:</p>\n<p>&nbsp;</p>\n<ul>\n<li>Sales $950,000 100%</li>\n<li>Cost of Sales $522,500 55%</li>\n<li>Gross Profit $427,500 45%</li>\n<li>Compensation costs $190,000 20%</li>\n<li>Other overhead costs $256,500 27%</li>\n<li>Total overhead costs $446,500 47%</li>\n<li>Profit (Loss) ($ 19,000) -2%</li>\n</ul>\n<p>&nbsp;</p>\n<p>Let\'s assume that sales are down 10% from the prior year.</p>\n<p>You can see that Joe lost $19,000 last year, and like most small business owners his first instinct is to regain lost revenues. Not a bad goal, but if that is Joe\'s singular focus, he may be missing opportunities and leaving money on the table.</p>\n<p>While doing what he can to restore the sales, why not also look elsewhere for financial improvements? Let\'s start with Cost of Sales.</p>\n<p>Most of the cost of sales is direct labor expenses, but some comes from the parts used. If Joe can reduce cost of sales by just $9,500 - by getting his repair team to be more efficient and working out a better deal on parts costs - Gross Profit goes up by that same amount.</p>\n<p>Now to compensation. Joe has 11 full timers. With sales of $950,000, that comes to about $86,000/employee. Sales/FTE varies by industry, but in general, anything much below $100,000 is cause for a closer look. With the dip in sales, Joe may have to reduce hours or even headcount. Getting down to 10 FTEs would put him at $95,000/FTE - a significant improvement. This is an important measure that deserves attention. For this example, we\'ll<br />leave Joe\'s compensation costs alone as there are enough real layoffs without me piling on fictional ones.</p>\n<p>Regarding overhead costs, can the team brainstorm on ways to cut costs and reduce overhead spending by just $12,000? If so, here is the new income statement, reflecting the improvements:</p>\n<ul>\n<li>Sales $950,000 100%</li>\n<li>Cost of Sales $513,000 54%</li>\n<li>Gross Profit $437,500 46%</li>\n<li>Compensation costs $190,000 20%</li>\n<li>Other overhead costs $244,500 26%</li>\n<li>Total overhead costs $434,500 46%</li>\n<li>Profit (Loss) $ 3,000 +0.3%</li>\n</ul>\n<p>At just better than breakeven, it\'s a start and beats the heck out of a loss. All with the same sales. To get that same bottom line result solely by growing sales, Joe would have had to increase revenue by almost $50,000 at 45% gross profit!</p>\n<p>So, what can you take away from this admittedly simplistic example?<br /><br />&bull; You and your people should look for improvements in every nook and cranny of<br />your P&amp;L<br />&bull; Small percentage changes can make all the difference at the bottom lin<br />&bull; If you don\'t know your numbers, you can\'t manage them</p>\n<p><br />Now, go sell something!</p>\";s:11:\"field_ft_23\";s:0:\"\";s:11:\"field_id_25\";s:3:\"432\";s:11:\"field_ft_25\";s:4:\"none\";s:11:\"field_id_26\";s:0:\"\";s:11:\"field_ft_26\";s:0:\"\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:0:\"\";s:11:\"field_id_29\";s:0:\"\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:0:\"\";s:11:\"field_ft_31\";s:0:\"\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:0:\"\";s:11:\"field_ft_44\";s:4:\"none\";s:11:\"field_id_45\";s:57:\"More sales? 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Who needs more sales? I bet you think you do.<br /><br />Everyone knows times are tough - especially small business owners. We\'re all scrambling to succeed.</p>\n<p>Here\'s something everyone doesn\'t know: More sales may not be what you need to survive Come with me as we take a trip down a typical income statement to see what I mean. Here\'s last year\'s income statement for the fictional Joe\'s Computer Repair:</p>\n<p>&nbsp;</p>\n<ul>\n<li>Sales $950,000 100%</li>\n<li>Cost of Sales $522,500 55%</li>\n<li>Gross Profit $427,500 45%</li>\n<li>Compensation costs $190,000 20%</li>\n<li>Other overhead costs $256,500 27%</li>\n<li>Total overhead costs $446,500 47%</li>\n<li>Profit (Loss) ($ 19,000) -2%</li>\n</ul>\n<p>&nbsp;</p>\n<p>Let\'s assume that sales are down 10% from the prior year.</p>\n<p>You can see that Joe lost $19,000 last year, and like most small business owners his first instinct is to regain lost revenues. Not a bad goal, but if that is Joe\'s singular focus, he may be missing opportunities and leaving money on the table.</p>\n<p>While doing what he can to restore the sales, why not also look elsewhere for financial improvements? Let\'s start with Cost of Sales.</p>\n<p>Most of the cost of sales is direct labor expenses, but some comes from the parts used. If Joe can reduce cost of sales by just $9,500 - by getting his repair team to be more efficient and working out a better deal on parts costs - Gross Profit goes up by that same amount.</p>\n<p>Now to compensation. Joe has 11 full timers. With sales of $950,000, that comes to about $86,000/employee. Sales/FTE varies by industry, but in general, anything much below $100,000 is cause for a closer look. With the dip in sales, Joe may have to reduce hours or even headcount. Getting down to 10 FTEs would put him at $95,000/FTE - a significant improvement. This is an important measure that deserves attention. 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None of them calls for more than modest commercial activities - a cafe here or a beer garden there - all well removed from the Arch itself and all within the realm of accepted practices at national parks.</p>\n<p><img alt=\"Arch Competition\" class=\"image-right\" height=\"303\" src=\"/images/uploads/arch-competition.jpg\" style=\"float: right;\" width=\"266\" />Instead, the five design teams have presented inspiring visions for enlivening and reinvigorating the park grounds to make them more inviting and interesting for city residents and visitors alike.</p>\n<p>The various plans do incorporate some common themes.</p>\n<p><strong>Theme # 1: Everyone Channels Lou Saur</strong></p>\n<p>Most of the plans seem to have lifted local architect Louis Saur\'s proposal (CNR March 2008) for the central axis of the park grounds en toto. Expand the museum and build a new visitor entrance above ground on the western side near I-70. Close or narrow Memorial Drive to reduce surface traffic. Build an entry plaza or bridge from Luther Ely Smith park to the new museum entrance and build underground parking beneath Ely Smith park.</p>\n<p><strong>Theme # 2: Isn\'t Citygarden Great?</strong></p>\n<p>Let\'s extend it east through Kiener Plaza or recreate Luther Ely Smith park as another sculpture park.</p>\n<p><strong>Theme # 3: Get Rid of the Garage</strong></p>\n<p>The parking garage on the north end of the park is a barrier to Laclede\'s Landing and has to go. Let\'s replace it with a new visitor\'s center or a cafe or a playground or ...</p>\n<p><strong>Theme # 4: The East Side is Just the Undeveloped East Bank of St. Louis</strong></p>\n<p>Given the parameters of the design competition, it will come as no surprise that the city of East St. Louis has disappeared from the designers\' geography. A lot of attention is given to connecting parkland on both sides of the river to St. Louis, incorporating them into the city\'s geography and relating them to development and redevelopment in the city, but there appears to have been little, if any, thought on how to connect the park to anything that exists in Illinois. As design plans get worked out, one hopes that some thought will go in that direction.</p>\n<p><strong>Theme # 5: Naturalize the East Bank</strong></p>\n<p>Recall the historic landscape by recreating wetlands, a canal, or an oxbow lake. Build a fake Indian mound. Build an agriculture museum, an ecology center, an avian research center or a wetlands research center. Have experimental farm fields, a farmers\' market, or an urban nursery.</p>\n<p><strong>Theme #6: More Ways to Cross the River</strong></p>\n<p>Build pedestrian promenades and bicycle paths on the Eads Bridge and the Poplar Street Bridge or MacArthur Bridge. 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Competition\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:26:\"Arch, Gateway, competition\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:5812:\"<p><em>When the National Park Service unveiled the five visions for transforming the Jefferson National Expansion Memorial from the five design teams picked to compete for the honor of redesigning the Arch grounds, CNR Editor Peter Downs attended the event. The following are his observations on the submissions:</em></p>\n<p>Those alarmed by earlier calls from former Senator John Danforth and Mayor Slay to privatize the Arch grounds to make way for commercial activities, including the National Parks Conservation Association and the Coalition of National Park Service Retirees - will be reassured by the visions of the five design teams. None of them calls for more than modest commercial activities - a cafe here or a beer garden there - all well removed from the Arch itself and all within the realm of accepted practices at national parks.</p>\n<p><img alt=\"Arch Competition\" class=\"image-right\" height=\"303\" src=\"/images/uploads/arch-competition.jpg\" style=\"float: right;\" width=\"266\" />Instead, the five design teams have presented inspiring visions for enlivening and reinvigorating the park grounds to make them more inviting and interesting for city residents and visitors alike.</p>\n<p>The various plans do incorporate some common themes.</p>\n<p><strong>Theme # 1: Everyone Channels Lou Saur</strong></p>\n<p>Most of the plans seem to have lifted local architect Louis Saur\'s proposal (CNR March 2008) for the central axis of the park grounds en toto. Expand the museum and build a new visitor entrance above ground on the western side near I-70. Close or narrow Memorial Drive to reduce surface traffic. 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A lot of attention is given to connecting parkland on both sides of the river to St. Louis, incorporating them into the city\'s geography and relating them to development and redevelopment in the city, but there appears to have been little, if any, thought on how to connect the park to anything that exists in Illinois. As design plans get worked out, one hopes that some thought will go in that direction.</p>\n<p><strong>Theme # 5: Naturalize the East Bank</strong></p>\n<p>Recall the historic landscape by recreating wetlands, a canal, or an oxbow lake. Build a fake Indian mound. Build an agriculture museum, an ecology center, an avian research center or a wetlands research center. Have experimental farm fields, a farmers\' market, or an urban nursery.</p>\n<p><strong>Theme #6: More Ways to Cross the River</strong></p>\n<p>Build pedestrian promenades and bicycle paths on the Eads Bridge and the Poplar Street Bridge or MacArthur Bridge. Have ferries or water taxis cross the river from one park to the other or, more ambitious yet, build gondolas to soar over the river from the south end of the Arch grounds to the Malcolm Martin Park on the east side and back.</p>\n<p>Certainly, the various plans differ in detail and in many other attractions and developments they include, from a floating stage on the east side to manmade \"urban bluffs\" built in the river in front of the Arch. One plan calls for more activities, including picnicking, on the cobblestone levee, another calls for a floating swimming pool in the river, a third calls for a swimming barge.</p>\n<p>Some of the design teams appear unaware of how often the Mississippi River floods, or even of the prolonged flooding this summer, while one team would highlight the varying river levels as part of the Arch experience by putting highly visible flood gauges in the river in front of the Arch grounds.</p>\n<p>And three of the design teams seem to like ice skating, but not rollerblading or roller skating, siting ice skating rinks either in the Gateway Mall or at one end or another of the Arch grounds.</p>\n<p>&nbsp;</p>\n<p><strong>SEE THE DESIGN CONCEPTS ONLINE<br /> </strong></p>\n<p>To view all of the finalists\' submissions, <a href=\"http://www.cityarchrivercompetition.org/finalists/\">click here</a>.</p>\n<p>&nbsp;</p>\n<p><strong>SEE THE DESIGN CONCEPTS IN PERSON AND SHARE YOUR VIEWS</strong></p>\n<p>Arch Lobby: 8 a.m.-10 p.m., Aug. 17 - Sept. 24 <br />Public comments welcomed through Aug. 23.</p>\n<p>Missouri Botanical Garden, Orthwein Hall, <br />9 a.m. - 5 p.m., Aug. 17-19</p>\n<p>Southwestern Illinois College, Main Complex, 2nd Floor Hallway <br />8 a.m. - 6 p.m., Aug. 21-22 <br />8-10 p.m., Aug. 23-24</p>\n<p>National Great Rivers Museum, 2 Lock and Dam Way, Alton <br />9 a.m. - 5 p.m., Aug. 27-29</p>\n<p>Southern Illinois University Edwardsville, Morris Center <br />8 a.m. - 8 p.m, Aug. 31 - Sept. 2</p>\n<p>Maryville University, University Library, Monsanto Room <br />10 a.m. - 4 p.m., Sept. 4 - 6</p>\n<p>University of Missouri - St. Louis, J.C. 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Lien Changes Have Broad Impact\";s:11:\"field_ft_20\";s:4:\"none\";s:11:\"field_id_22\";s:30:\"Stockenberg, Lien, residential\";s:11:\"field_ft_22\";s:4:\"none\";s:11:\"field_id_23\";s:10752:\"<p><em>by Richard A. Stockenberg<br />Gallop, Johnson &amp; Neuman, L.C.</em></p>\n<p>A highly controversial overhaul of the procedure to perfect mechanics\' liens against residential property took effect August 28, 2010.  The new law applies to any residential property transferred on or after November 1, 2010.  While the law applies only to \"residential real property,\" there is a broad definition of what kinds of property are included.</p>\n<p>There are four basic components to the new law. Foremost, lien rights will be lost if the lien claimant does not record with the recorder of deeds a \"notice of right\" at least 5 days before the property is sold.  Second, the law enumerates specific documents which must be included in the lien statement.  Next, there are rules interpreting the efficacy of lien waiver forms.  Finally, the law permits an owner to provide collateral in lieu of the lien as a means of clearing title.  In other states this is referred to as \"bonding around the lien.\"</p>\n<p><strong><br />Residential Property Defined</strong><br />Current law restricts the ability to place liens against owner-occupied residential property.  The new law does not change the law with respect to repairs, remodeling or additions to owner-occupied residential property.  Rather, the new law applies only to construction of new residential property.  The law defines \"residential real property\" as property intended to be used or is used for the construction of residential structures of four units or less but the law also applies to condominiums, townhouses and cooperatives, regardless of the number of units.  Mixed use or Planned Unit Developments are covered by the new law to the extent they are located on separate identifiable parcels of land from non-residential uses.  Also, the law applies to streets, sidewalks, utility services and improved common areas that are part of the residential structures.  Nothing in the law applies to commercial, industrial or any other type of project except residential property.<strong><br /></strong></p>\n<p><strong>New Notice Requirements</strong><br />For the first time in Missouri, owners have the potential of denying contractors, subcontractors and suppliers the right to file liens against their property.  They may do so by recording in the county recorder of deed\'s office a notice of sale.  If the owner properly records its notice of sale, then a lien claimant must, as a condition precedent to filing a lien, record its notice of right at least 5 days before the property is transferred.  The owner is also required to post its notice of sale at the jobsite, but failure to post at the jobsite will not relieve the lien claimant of the responsibility of recording its notice of right.<br />Lien Claimant\'s Notice of Right</p>\n<p>If the owner records a notice of sale at least 45 days before the property is sold, then a lien claimant must record a notice of right at least 5 days before the property is sold.  The notice of right must include the name of the owner, a legal description of the property, and the name, address and telephone number of the upstream party with whom the lien claimant has a contract.  The lien claimant may list in its notice of rights the names, addresses and telephone numbers of its lower-tiered subcontractors and suppliers.  If such downstream entities are properly identified in the lien claimant\'s notice of right, they are relieved of the responsibility of recording their own notice of rights.  There is, however, no requirement that a lien claimant name its lower tiered subcontractors and suppliers.<br />Separate notices of rights do not have to be recorded for each lot or parcel of residential property where work is performed on multiple lots within the same subdivision and there is common ownership or if the lien claimant\'s work begins before platting or subdivision.</p>\n<p>If a subcontractor/supplier preserves its lien rights by recording a notice of rights before the property is sold, it is relieved of complying with the current statutory requirement of serving the owner a notice of intent to file a lien at least 10 days before the lien is filed.  It is unclear whether a subcontractor who does not file a notice of right because the owner does not file a notice of sale is also relieved of serving the 10 day notice if it wishes to file a lien.  Prudence dictates that either the notice of right be recorded or the 10 day notice be served.</p>\n<p>To the extent there is any misinformation contained in the notice of rights, which information causes prejudice to the owner, the lien claimant loses its lien rights to the extent of the prejudice caused by the error.</p>\n<p><br /><strong>Owner\'s Notice of Sale</strong><br />Lien claimants will only have to record their notice of rights if the owner records a notice of sale at least 45 days before the property is sold to the bona fide purchaser.  The owner\'s notice of sale must include the name of the owner, the legal description of the property and the earliest date when title to the property will be transferred.  If that date is extended, a new notice of sale is not required to be recorded.  Lien claimants preserve their lien rights if they record their notice of rights at least 5 days before title is transferred.  There is nothing in the law that prevents the lien claimant from recording its notice of rights before the owner records a notice of sale, except it will have to rely on other means for determining the name of the owner and the legal description.</p>\n<p>If a lien claimant requests a copy of the notice of sale from the owner, the owner is required to furnish the notice to the lien claimant within 5 calendar days after receiving the request.  A contractor receiving the owner\'s notice of sale is required to furnish a copy of the notice of sale to each of its lower tiered subcontractors and material suppliers.  Notice of sale must be given to the lower tiered contractors within 10 days after the other contractor has received the notice of sale.<br />The owner is not liable for any error or omission contained within the notice of sale; however, if a lien claimant receives a copy of the notice of sale from the owner and relies in good faith upon the information contained within the notice and the lien claimant has otherwise complied with other requirements of the law, then the claimant\'s lien rights are not lost by reason of the faulty information provided by the owner.<strong><br /></strong></p>\n<p><strong>What is Included in Lien?</strong><br />Under prior law, lien claimants were required to include within their lien statement a just and true statement of their account.  Rules defining what needed to be included were made by courts and vary case to case.  The new law provides certainty as to what needs to be included within the lien statement.  This does not necessarily mean that all lien statements will be simplified.  It is probably safe to say that large liens are simplified by the new rules and smaller liens are not.  The law identifies the following seven items as being mandatory for liens on residential property:<br />1. A copy of the recorded notice of rights;<br />2. Name and address of the lien claimant\'s upstream contractor;<br />3. Contracts, purchase orders or proposals and agreed-upon change orders or modifications;<br />4. If there is no written agreement, then a general description of the scope of work and the basis of payment;<br />5. All of the claimant\'s invoices for its work on the property;<br />6. An accurate statement of account, which shows payments and credits applied against amounts due and the calculation or basis for the amount claimed; and<br />7. The last date work was performed or materials were provided.</p>\n<p>It is not necessary to include detailed time and material records itemizing each hour of labor and every piece of material used on the property.<br />Substitute Security for Lien</p>\n<p>As a means of enabling property encumbered with mechanics\' lien to be transferred free and clear, the law permits owners to provide substitute collateral.  If the substitute collateral is provided in accordance with the statute, then the lien rights against the real estate are lost and payment of the debt is secured by the substitute collateral instead of the real estate.  The substitute collateral may be in the form of cash or certified check, an irrevocable letter of credit or a surety bond.  The value of the substitute collateral must be at least 150% of the amount of the mechanics\' lien being released.  If the substitute collateral is provided, then lien claimant is not relieved of its obligation to otherwise prove that it is entitled to a mechanics\' lien against the property.</p>\n<p><strong>New Rules on Interpreting Lien Waivers</strong><br />Lien claimants are often \"asked\", that is, required, to sign a lien waiver which effectively waives all lien rights through the date the lien waiver is signed even though the payment given in exchange for the lien waiver is for a lesser period.  For example, suppose a subcontractor receives its payment for its first month\'s work in the fourth month of the project.  If a lien waiver is given in the fourth month for only its work performed in the first month, then it is losing its lien rights for all of the other work it performed after the first month.  The new law addresses this problem.  Under the new law a lien waiver \"shall not be deemed or interpreted to waive or release lien rights in exchange for a payment of less than the amount claimed due at that time unless the lien waiver is a final unconditional waiver.\"  While the language of the new statute is not a model of clarity, it should provide lien claimants a safer harbor, especially if the lien waiver form makes it clear that the party signing the waiver claims entitlement to more than the amount being paid in exchange for the lien waiver.  Lien waiver forms should be adjusted accordingly.</p>\n<p><strong><br />So What Does This Mean?</strong><br /> There will have to be changes in the way business is done or lien rights will be lost.  Gone are the days of waiting to see if there are payment problems before starting the lien process.  Now, projects will have to be assessed on the likelihood title is about to be transferred.  Lien claimants will have to check real estate records to see if the owner has recorded the Notice of Sale.  If none is recorded at the time of the first search, there is no guarantee that one will not be recorded the next day.  To be safe, there will have to be repetitive searches, all at some expense of time and/or money.  A failure to exercise due diligence may result in the loss of lien rights.</p>\n<p>&nbsp;</p>\";s:11:\"field_ft_23\";s:0:\"\";s:11:\"field_id_25\";s:3:\"452\";s:11:\"field_ft_25\";s:4:\"none\";s:11:\"field_id_26\";s:0:\"\";s:11:\"field_ft_26\";s:0:\"\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:0:\"\";s:11:\"field_id_29\";s:0:\"\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:0:\"\";s:11:\"field_ft_31\";s:0:\"\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:0:\"\";s:11:\"field_ft_44\";s:4:\"none\";s:11:\"field_id_45\";s:351:\"A highly controversial overhaul of the procedure to perfect mechanics\' liens against residential property took effect August 28, 2010. The new law applies to any residential property transferred on or after November 1, 2010. 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Stockenberg<br />Gallop, Johnson &amp; Neuman, L.C.</em></p>\n<p>A highly controversial overhaul of the procedure to perfect mechanics\' liens against residential property took effect August 28, 2010.  The new law applies to any residential property transferred on or after November 1, 2010.  While the law applies only to \"residential real property,\" there is a broad definition of what kinds of property are included.</p>\n<p>There are four basic components to the new law. Foremost, lien rights will be lost if the lien claimant does not record with the recorder of deeds a \"notice of right\" at least 5 days before the property is sold.  Second, the law enumerates specific documents which must be included in the lien statement.  Next, there are rules interpreting the efficacy of lien waiver forms.  Finally, the law permits an owner to provide collateral in lieu of the lien as a means of clearing title.  In other states this is referred to as \"bonding around the lien.\"</p>\n<p><strong><br />Residential Property Defined</strong><br />Current law restricts the ability to place liens against owner-occupied residential property.  The new law does not change the law with respect to repairs, remodeling or additions to owner-occupied residential property.  Rather, the new law applies only to construction of new residential property.  The law defines \"residential real property\" as property intended to be used or is used for the construction of residential structures of four units or less but the law also applies to condominiums, townhouses and cooperatives, regardless of the number of units.  Mixed use or Planned Unit Developments are covered by the new law to the extent they are located on separate identifiable parcels of land from non-residential uses.  Also, the law applies to streets, sidewalks, utility services and improved common areas that are part of the residential structures.  Nothing in the law applies to commercial, industrial or any other type of project except residential property.<strong><br /></strong></p>\n<p><strong>New Notice Requirements</strong><br />For the first time in Missouri, owners have the potential of denying contractors, subcontractors and suppliers the right to file liens against their property.  They may do so by recording in the county recorder of deed\'s office a notice of sale.  If the owner properly records its notice of sale, then a lien claimant must, as a condition precedent to filing a lien, record its notice of right at least 5 days before the property is transferred.  The owner is also required to post its notice of sale at the jobsite, but failure to post at the jobsite will not relieve the lien claimant of the responsibility of recording its notice of right.<br />Lien Claimant\'s Notice of Right</p>\n<p>If the owner records a notice of sale at least 45 days before the property is sold, then a lien claimant must record a notice of right at least 5 days before the property is sold.  The notice of right must include the name of the owner, a legal description of the property, and the name, address and telephone number of the upstream party with whom the lien claimant has a contract.  The lien claimant may list in its notice of rights the names, addresses and telephone numbers of its lower-tiered subcontractors and suppliers.  If such downstream entities are properly identified in the lien claimant\'s notice of right, they are relieved of the responsibility of recording their own notice of rights.  There is, however, no requirement that a lien claimant name its lower tiered subcontractors and suppliers.<br />Separate notices of rights do not have to be recorded for each lot or parcel of residential property where work is performed on multiple lots within the same subdivision and there is common ownership or if the lien claimant\'s work begins before platting or subdivision.</p>\n<p>If a subcontractor/supplier preserves its lien rights by recording a notice of rights before the property is sold, it is relieved of complying with the current statutory requirement of serving the owner a notice of intent to file a lien at least 10 days before the lien is filed.  It is unclear whether a subcontractor who does not file a notice of right because the owner does not file a notice of sale is also relieved of serving the 10 day notice if it wishes to file a lien.  Prudence dictates that either the notice of right be recorded or the 10 day notice be served.</p>\n<p>To the extent there is any misinformation contained in the notice of rights, which information causes prejudice to the owner, the lien claimant loses its lien rights to the extent of the prejudice caused by the error.</p>\n<p><br /><strong>Owner\'s Notice of Sale</strong><br />Lien claimants will only have to record their notice of rights if the owner records a notice of sale at least 45 days before the property is sold to the bona fide purchaser.  The owner\'s notice of sale must include the name of the owner, the legal description of the property and the earliest date when title to the property will be transferred.  If that date is extended, a new notice of sale is not required to be recorded.  Lien claimants preserve their lien rights if they record their notice of rights at least 5 days before title is transferred.  There is nothing in the law that prevents the lien claimant from recording its notice of rights before the owner records a notice of sale, except it will have to rely on other means for determining the name of the owner and the legal description.</p>\n<p>If a lien claimant requests a copy of the notice of sale from the owner, the owner is required to furnish the notice to the lien claimant within 5 calendar days after receiving the request.  A contractor receiving the owner\'s notice of sale is required to furnish a copy of the notice of sale to each of its lower tiered subcontractors and material suppliers.  Notice of sale must be given to the lower tiered contractors within 10 days after the other contractor has received the notice of sale.<br />The owner is not liable for any error or omission contained within the notice of sale; however, if a lien claimant receives a copy of the notice of sale from the owner and relies in good faith upon the information contained within the notice and the lien claimant has otherwise complied with other requirements of the law, then the claimant\'s lien rights are not lost by reason of the faulty information provided by the owner.<strong><br /></strong></p>\n<p><strong>What is Included in Lien?</strong><br />Under prior law, lien claimants were required to include within their lien statement a just and true statement of their account.  Rules defining what needed to be included were made by courts and vary case to case.  The new law provides certainty as to what needs to be included within the lien statement.  This does not necessarily mean that all lien statements will be simplified.  It is probably safe to say that large liens are simplified by the new rules and smaller liens are not.  The law identifies the following seven items as being mandatory for liens on residential property:<br />1. A copy of the recorded notice of rights;<br />2. Name and address of the lien claimant\'s upstream contractor;<br />3. Contracts, purchase orders or proposals and agreed-upon change orders or modifications;<br />4. If there is no written agreement, then a general description of the scope of work and the basis of payment;<br />5. All of the claimant\'s invoices for its work on the property;<br />6. An accurate statement of account, which shows payments and credits applied against amounts due and the calculation or basis for the amount claimed; and<br />7. The last date work was performed or materials were provided.</p>\n<p>It is not necessary to include detailed time and material records itemizing each hour of labor and every piece of material used on the property.<br />Substitute Security for Lien</p>\n<p>As a means of enabling property encumbered with mechanics\' lien to be transferred free and clear, the law permits owners to provide substitute collateral.  If the substitute collateral is provided in accordance with the statute, then the lien rights against the real estate are lost and payment of the debt is secured by the substitute collateral instead of the real estate.  The substitute collateral may be in the form of cash or certified check, an irrevocable letter of credit or a surety bond.  The value of the substitute collateral must be at least 150% of the amount of the mechanics\' lien being released.  If the substitute collateral is provided, then lien claimant is not relieved of its obligation to otherwise prove that it is entitled to a mechanics\' lien against the property.</p>\n<p><strong>New Rules on Interpreting Lien Waivers</strong><br />Lien claimants are often \"asked\", that is, required, to sign a lien waiver which effectively waives all lien rights through the date the lien waiver is signed even though the payment given in exchange for the lien waiver is for a lesser period.  For example, suppose a subcontractor receives its payment for its first month\'s work in the fourth month of the project.  If a lien waiver is given in the fourth month for only its work performed in the first month, then it is losing its lien rights for all of the other work it performed after the first month.  The new law addresses this problem.  Under the new law a lien waiver \"shall not be deemed or interpreted to waive or release lien rights in exchange for a payment of less than the amount claimed due at that time unless the lien waiver is a final unconditional waiver.\"  While the language of the new statute is not a model of clarity, it should provide lien claimants a safer harbor, especially if the lien waiver form makes it clear that the party signing the waiver claims entitlement to more than the amount being paid in exchange for the lien waiver.  Lien waiver forms should be adjusted accordingly.</p>\n<p><strong><br />So What Does This Mean?</strong><br /> There will have to be changes in the way business is done or lien rights will be lost.  Gone are the days of waiting to see if there are payment problems before starting the lien process.  Now, projects will have to be assessed on the likelihood title is about to be transferred.  Lien claimants will have to check real estate records to see if the owner has recorded the Notice of Sale.  If none is recorded at the time of the first search, there is no guarantee that one will not be recorded the next day.  To be safe, there will have to be repetitive searches, all at some expense of time and/or money.  A failure to exercise due diligence may result in the loss of lien rights.</p>\n<p>&nbsp;</p>\";s:11:\"field_ft_23\";s:0:\"\";s:11:\"field_id_25\";s:3:\"452\";s:11:\"field_ft_25\";s:4:\"none\";s:11:\"field_id_26\";s:0:\"\";s:11:\"field_ft_26\";s:0:\"\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:0:\"\";s:11:\"field_id_29\";s:0:\"\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:0:\"\";s:11:\"field_ft_31\";s:0:\"\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:0:\"\";s:11:\"field_ft_44\";s:4:\"none\";s:11:\"field_id_45\";s:351:\"A highly controversial overhaul of the procedure to perfect mechanics\' liens against residential property took effect August 28, 2010. 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thought would increase manhours and market share,\" a representative for the contractors said.</p>\n<p>The contractors had reached agreement with union negotiators on two previous occasions, but union leaders were unable to sell the agreements to their membership. The earlier agreements reportedly contained similar provisions to those approved in the agreement ratified by the union.&nbsp;</p>\n<p>Provisions of the agreement approved by the union included:</p>\n<ul>\n<li>Wage freezes in years one and two, with any money needed to fund industry funds to be deducted from the wage package currently in place;</li>\n<li>A three percent increase in year three, based on base wages as of August 31, 2012, with the proceeds to be distributed to the funds;</li>\n<li>Voluntary make-up days at regular pay for exterior work lost to inclement weather. 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5.4pt 0in 5.4pt;\n	mso-para-margin:0in;\n	mso-para-margin-bottom:.0001pt;\n	mso-pagination:widow-orphan;\n	font-size:11.0pt;\n	font-family:\"Calibri\",\"sans-serif\";\n	mso-ascii-font-family:Calibri;\n	mso-ascii-theme-font:minor-latin;\n	mso-fareast-font-family:\"Times New Roman\";\n	mso-fareast-theme-font:minor-fareast;\n	mso-hansi-font-family:Calibri;\n	mso-hansi-theme-font:minor-latin;\n	mso-bidi-font-family:\"Times New Roman\";\n	mso-bidi-theme-font:minor-bidi;}\n</style>\n<![endif]-->After twice previously rejecting settlements reached with painting contractors, members of Painters\' District Council #2 voted overwhelmingly to approve a new three-year agreement which included wage freezes in the first two years and significant concessions on premium rates and work rules.</p>\n<p>Representatives of Painting and \nDecorating Contractors of America Chapter 2/Finishing Contractors \nAssociation will vote on ratification of the agreement on Thursday. \"We worked on some things that we thought would increase manhours and market share,\" a representative for the contractors said.</p>\n<p>The contractors had reached agreement with union negotiators on two previous occasions, but union leaders were unable to sell the agreements to their membership. The earlier agreements reportedly contained similar provisions to those approved in the agreement ratified by the union.&nbsp;</p>\n<p>Provisions of the agreement approved by the union included:</p>\n<ul>\n<li>Wage freezes in years one and two, with any money needed to fund industry funds to be deducted from the wage package currently in place;</li>\n<li>A three percent increase in year three, based on base wages as of August 31, 2012, with the proceeds to be distributed to the funds;</li>\n<li>Voluntary make-up days at regular pay for exterior work lost to inclement weather. Exceptions are made for instances where the worker was entitled to show up pay or work was cancelled after the work day began;<br /></li>\n<li>Spray work premium of $2 per hour only applies to classifications E1 and E0 materials (highest levels of VOCs);</li>\n<li>4/10 schedules are applicable to all work, not just to industrial;</li>\n<li>Water blast premium eliminated;</li>\n<li>High work premium eliminated;</li>\n<li>Shift pay work is $2 per hour with a four-hour premium after 8 p.m., but drops to actual hours after four hours. The four-hour minimum will be waived for circumstances beyond the contractor\'s control. <br /></li>\n</ul>\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:3:\"451\";s:11:\"field_ft_31\";s:4:\"none\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:293:\"After twice previously rejecting settlements reached with painting contractors, members of  Painters\' District Council #2 voted overwhelmingly to approve a new three-year agreement which included wage freezes in the first two years and significant concessions on 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Orders\"\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:23:\"bid, price, Black, CREW\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:25471:\"<p>Owners have fooled themselves into thinking that low-price bidding equals low cost construction, author Bill Black said. 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They are critical in making the change,\" he said. And right now, owners are responsible for one of the critical problems in the industry: low-price bidding.</p>\n<p><img alt=\"Price Tag\" class=\"image-right\" height=\"303\" src=\"/images/uploads/price_tag.jpg\" style=\"float: right;\" width=\"266\" /></p>\n<p>As a former construction estimator for a commercial roofing contractor, Black said, \"I often knew what our  first change order would be as soon as I knew who the architect was, because I knew from experience that some architects made the same mistake all the time and I always took advantage of that loophole. If I had to play the bait and switch change order game because you wanted the low price and your documents were flawed, I would, because contrary to popular belief, a contractor is not a charitable organization.\"</p>\n<p>\"The definition of the low bidder is whoever made the biggest mistake,\" he added, \"but most \'mistakes\' are deliberate and you make them because you have six change orders in your back pocket that you know from experience you will get.\"</p>\n<p>In essence, there are two kinds of contractors in the market, Black said, \"relationship based contractors and change order based contractors, and as an owner you have to decide which you want.\"</p>\n<p>The commercial real estate revolution, according to Black: trust-based project teams, early collaboration among team members, built-in sustainability, and transformational leadership by owners.</p>\n<p>\"It is not about eliminating competition, but about intelligent bid selection based on more than just low price,\" he said. \"When customers select teams based on knowledge and ability, they end up with better designs without spending more money.</p>\n<p>\"And there is a lot of knowledge and expertise at the contractor and subcontractor levels. 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Roman\";\n	mso-bidi-theme-font:minor-bidi;}\n</style>\n<![endif]--></p>\n<p>Black, co-author of The Commercial Real Estate Revolution, is coming to St. Louis next week to discuss \"the nine transforming keys to lowering costs, cutting waste and driving change\" in commercial real estate and construction in a program sponsored by the St. Louis chapter of CREW (Commercial Real Estate Women) and the mid-America chapter of IIDA (International Interior Design Association).</p>\n<p>Black, strategic business solutions director for Haworth, Inc., said the message of The Commercial Real Estate Revolution is aimed at owners. \"The good contractors get it, but owners won\'t let them do it,\" he said. \"Owners set the tone. They are critical in making the change,\" he said. And right now, owners are responsible for one of the critical problems in the industry: low-price bidding.</p>\n<p><img alt=\"Price Tag\" class=\"image-right\" height=\"303\" src=\"/images/uploads/price_tag.jpg\" style=\"float: right;\" width=\"266\" /></p>\n<p>As a former construction estimator for a commercial roofing contractor, Black said, \"I often knew what our  first change order would be as soon as I knew who the architect was, because I knew from experience that some architects made the same mistake all the time and I always took advantage of that loophole. If I had to play the bait and switch change order game because you wanted the low price and your documents were flawed, I would, because contrary to popular belief, a contractor is not a charitable organization.\"</p>\n<p>\"The definition of the low bidder is whoever made the biggest mistake,\" he added, \"but most \'mistakes\' are deliberate and you make them because you have six change orders in your back pocket that you know from experience you will get.\"</p>\n<p>In essence, there are two kinds of contractors in the market, Black said, \"relationship based contractors and change order based contractors, and as an owner you have to decide which you want.\"</p>\n<p>The commercial real estate revolution, according to Black: trust-based project teams, early collaboration among team members, built-in sustainability, and transformational leadership by owners.</p>\n<p>\"It is not about eliminating competition, but about intelligent bid selection based on more than just low price,\" he said. \"When customers select teams based on knowledge and ability, they end up with better designs without spending more money.</p>\n<p>\"And there is a lot of knowledge and expertise at the contractor and subcontractor levels. When you bring the contractor and major trades into the team early to collaborate on the design, you get solutions that are constructable and inherently cost effective, because that is how they are trained to think,\" he said.</p>\n<p>For contractors, he has this piece of advice: Identity customers who are fed up with the usual way of doing business and offer them a workable alternative. \"They are the real opportunities,\" he said, \"but if no one brings them a different menu they will continue to make unhealthy choices.\"</p>\n<p>Doing the same things for the next 10, 15, or 20 years that the industry is doing now will drive capable people out the industry, worsen service, and hurt business competitiveness. \"The industry has to change,\" he said.</p>\n<p>You can hear Bill Black on Tuesday, September 14, at 5 p.m. At the Edward Jones Learning Center, 130 Edward Jones Boulevard in Maryland Heights. The cost of admission is $35 for members of CREW or IIDA or $45 for non-members.</p>\n<p>Register at <a href=\"http://www.crewstl.org/PROGRAMS/2010/SEP10/SEP_IIDA10.html\">http://www.crewstl.org/PROGRAMS/2010/SEP10/SEP_IIDA10.html</a></p>\n<p><strong><br /></strong></p>\n<p>&nbsp;</p>\";s:10:\"field_ft_8\";s:4:\"none\";s:10:\"field_id_9\";s:589:\"Owners have fooled themselves into thinking that low-price bidding equals low cost construction, author Bill Black said. 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Unfortunately those traditions and relationships have become tarnished and fractured in the past few years.  Bluntly, what worked in the past is no longer working.  Change is necessary if we are to have any possibility of recovery and growth.</p>\n<p>A combination of issues has effectively stalemated our ability to recover from the current construction recession and has opened our market to further deterioration, both in loss of business to other areas of the country and to the entry of national contracting and design entities from other markets into the St. Louis area.</p>\n<p>One of the most effective ways to begin change is to openly and candidly address the issues at hand with dialogue and with the presentation of statistical evidence. Individual constituencies such as construction consumers, general contractors, subcontractors, and designers have done admirable jobs of attempting to address the issues through their programming and communication. But while there has been a lot of discussion about \"best practices,\" new approaches, and collaboration, where the rubber meets the road we are an industry more divided against itself than at any point in decades.</p>\n<p>Here are some of my recent, admittedly random, observations about the need for something to change:</p>\n<p><br /> &bull;	At the November meeting of the American Society of Professional Engineers, John Grady, senior BIM technician at McCarthy demonstrated the ways in which BIM information can inform and streamline the construction process. Despite the impressiveness of the technology, the thought that came foremost to my mind was that the potential of this rich flow of information is wasted unless an open, trusting, collaborative environment exists in which it can be shared.</p>\n<p><br /> &bull;	Shortly before writing this column I had a discussion with some young project managers who truly believe in taking the high road in being open and honest in competing for work and in collaborative relationships with owners and other team members once the work is won. These young men believe that honesty and collaboration will prove out in the young run. But they have become truly disillusioned by the amount of \"gaming\" that takes place in today\'s construction  bid and project management environment.</p>\n<p><br /> &bull;	Steve Bannes, director of the Sever Institute graduate studies program in construction at Washington University told me that he recently asked students in one of his classes how many felt that playing the flexible ethics game was part of the construction process. The disheartening number of students who agreed that taking the low road surprised Bannes.</p>\n<p><br /> &bull;	A recent CNR enews/website article \"All Low Price Buys is Changes Orders\" served as a catalyst for lively discussion both online and in person. The article was an interview outlining the viewpoint of author Bill Black, who came to St. Louis to share his perspective on the current price-focused bid market with commercial real estate and design industry representatives. For two weeks after the article ran a lively online and offline discussion of the issue ensued. It is this kind of change-related dialogue that I believe that our industry is currently lacking. I encourage you to check out the article on the CNR website.</p>\n<p><br />There has been no single point of dialogue or repository of information regarding these issues.  The leadership forum which I am proposing would attempt to address that need with work products which would include, but not be limited to, the following:</p>\n<p><br /> &bull;	Annual or bi-annual executive-level \"leadership summits\" <br /> &bull;	A website with <br /> &bull;	downloadable summaries of the summits <br /> &bull;	industry statistics<br /> &bull;	blogs on industry issues<br /> &bull;	discussion forums<br /> &bull;	webinars on forum topics<br /> &bull;	A regularly circulated e-newsletter<br /> &bull;	Position papers on key issues facing the industry (downloadable)<br /> &bull;	University graduate and undergraduate research on local industry issues (downloadable)</p>\n<p><br />University construction study programs at Washington University and SIUE could be involved in vetting and assisting with the development of programming for these communication channels. The goal would be to create an objective presentation of the facts which has the necessary credibility to reasonably assess the current situation and to affect change.  A steering body representing the gamut of the industry would help to direct the evolution of the effort.</p>\n<p><br />The primary issues which need to be addressed directly and candidly are:</p>\n<p><br /> &bull;	Labor issues: The role of unions historically and in the future needs to be examined candidly, in light of the current state of the industry. Unions have provided a stable, trained work force for the St. Louis area for over a century. They have, in effect, created an environment that has largely been closed to contractors from outside the metropolitan area.</p>\n<p>&bull;	Project Award Environment: Two years ago the industry appeared to be entering a new environment of process for project awards. An increasing amount of work was being awarded on a negotiated basis. Integrated Project Delivery was at least being explored, if not practiced in reality. Now the \"buyers\' market\" for construction is creating an acrimonious climate in which price is the primary determinant of project awards. Incomplete scopes result in change orders, and contentious project management. The subcontractor/general/owner relationship is more fractious and distrustful than it has been in decades.</p>\n<p>&bull;	Political Divisions: The large number of political entities in the metropolitan area and parochialism among those entities has long been an impediment to development and construction in St. Louis. While this forum cannot change the political infrastructure of the St. Louis area, it is possible that a factual presentation of the effects of political fractionalization on the construction environment can at least result in communication leading to a more building-friendly political environment.</p>\n<p><br /> &bull;	Inclusion: Despite the best efforts of AGC, SLCCC and other organizations the reality of including MBE/WBE organizations in the market, who does and does not qualify as MBE/WEB and what inclusion looks like when it\'s really happening has become increasingly muddied. Further, the current contentious bid fray and the variety of programs that institutional and corporate buyers are creating make it difficult for industry firms to build cohesive inclusion policies.</p>\n<p>I have been in discussion with association and educational leaders and have received their support for this St. Louis Construction Leadership Forum concept. 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Unfortunately those traditions and relationships have become tarnished and fractured in the past few years.  Bluntly, what worked in the past is no longer working.  Change is necessary if we are to have any possibility of recovery and growth.</p>\n<p>A combination of issues has effectively stalemated our ability to recover from the current construction recession and has opened our market to further deterioration, both in loss of business to other areas of the country and to the entry of national contracting and design entities from other markets into the St. Louis area.</p>\n<p>One of the most effective ways to begin change is to openly and candidly address the issues at hand with dialogue and with the presentation of statistical evidence. Individual constituencies such as construction consumers, general contractors, subcontractors, and designers have done admirable jobs of attempting to address the issues through their programming and communication. But while there has been a lot of discussion about \"best practices,\" new approaches, and collaboration, where the rubber meets the road we are an industry more divided against itself than at any point in decades.</p>\n<p>Here are some of my recent, admittedly random, observations about the need for something to change:</p>\n<p><br /> &bull;	At the November meeting of the American Society of Professional Engineers, John Grady, senior BIM technician at McCarthy demonstrated the ways in which BIM information can inform and streamline the construction process. Despite the impressiveness of the technology, the thought that came foremost to my mind was that the potential of this rich flow of information is wasted unless an open, trusting, collaborative environment exists in which it can be shared.</p>\n<p><br /> &bull;	Shortly before writing this column I had a discussion with some young project managers who truly believe in taking the high road in being open and honest in competing for work and in collaborative relationships with owners and other team members once the work is won. These young men believe that honesty and collaboration will prove out in the young run. But they have become truly disillusioned by the amount of \"gaming\" that takes place in today\'s construction  bid and project management environment.</p>\n<p><br /> &bull;	Steve Bannes, director of the Sever Institute graduate studies program in construction at Washington University told me that he recently asked students in one of his classes how many felt that playing the flexible ethics game was part of the construction process. The disheartening number of students who agreed that taking the low road surprised Bannes.</p>\n<p><br /> &bull;	A recent CNR enews/website article \"All Low Price Buys is Changes Orders\" served as a catalyst for lively discussion both online and in person. The article was an interview outlining the viewpoint of author Bill Black, who came to St. Louis to share his perspective on the current price-focused bid market with commercial real estate and design industry representatives. For two weeks after the article ran a lively online and offline discussion of the issue ensued. It is this kind of change-related dialogue that I believe that our industry is currently lacking. I encourage you to check out the article on the CNR website.</p>\n<p><br />There has been no single point of dialogue or repository of information regarding these issues.  The leadership forum which I am proposing would attempt to address that need with work products which would include, but not be limited to, the following:</p>\n<p><br /> &bull;	Annual or bi-annual executive-level \"leadership summits\" <br /> &bull;	A website with <br /> &bull;	downloadable summaries of the summits <br /> &bull;	industry statistics<br /> &bull;	blogs on industry issues<br /> &bull;	discussion forums<br /> &bull;	webinars on forum topics<br /> &bull;	A regularly circulated e-newsletter<br /> &bull;	Position papers on key issues facing the industry (downloadable)<br /> &bull;	University graduate and undergraduate research on local industry issues (downloadable)</p>\n<p><br />University construction study programs at Washington University and SIUE could be involved in vetting and assisting with the development of programming for these communication channels. The goal would be to create an objective presentation of the facts which has the necessary credibility to reasonably assess the current situation and to affect change.  A steering body representing the gamut of the industry would help to direct the evolution of the effort.</p>\n<p><br />The primary issues which need to be addressed directly and candidly are:</p>\n<p><br /> &bull;	Labor issues: The role of unions historically and in the future needs to be examined candidly, in light of the current state of the industry. Unions have provided a stable, trained work force for the St. Louis area for over a century. They have, in effect, created an environment that has largely been closed to contractors from outside the metropolitan area.</p>\n<p>&bull;	Project Award Environment: Two years ago the industry appeared to be entering a new environment of process for project awards. An increasing amount of work was being awarded on a negotiated basis. Integrated Project Delivery was at least being explored, if not practiced in reality. Now the \"buyers\' market\" for construction is creating an acrimonious climate in which price is the primary determinant of project awards. Incomplete scopes result in change orders, and contentious project management. The subcontractor/general/owner relationship is more fractious and distrustful than it has been in decades.</p>\n<p>&bull;	Political Divisions: The large number of political entities in the metropolitan area and parochialism among those entities has long been an impediment to development and construction in St. Louis. While this forum cannot change the political infrastructure of the St. Louis area, it is possible that a factual presentation of the effects of political fractionalization on the construction environment can at least result in communication leading to a more building-friendly political environment.</p>\n<p><br /> &bull;	Inclusion: Despite the best efforts of AGC, SLCCC and other organizations the reality of including MBE/WBE organizations in the market, who does and does not qualify as MBE/WEB and what inclusion looks like when it\'s really happening has become increasingly muddied. Further, the current contentious bid fray and the variety of programs that institutional and corporate buyers are creating make it difficult for industry firms to build cohesive inclusion policies.</p>\n<p>I have been in discussion with association and educational leaders and have received their support for this St. Louis Construction Leadership Forum concept. CNR would take an active role - working with the associations and educational institutions in developing the events and electronic communication tools.</p>\n<p>I\'ll update you as plans for this concept become more concrete. 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