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of the construction project by guaranteeing that the contractor
will build the project according to the specifications and make
all required payments to its subcontractors on the project.
Dennis, Curtis, and their wives personally guaranteed all
performance and payment bonds issued on behalf of petitioner.
In addition to Dennis and Curtis, petitioner employed 35
persons during 1995 and 41 persons during 1996. Petitioner's
office staff consisted of Rodney Olson (Mr. Olson), who was the
office manager, and Jane Wagner (Jane), who was Curtis' wife.
Other than Dennis, Curtis, Jane, and Mr. Olson, petitioner's
remaining employees worked an average of 28.9 weeks in 1995 and
27.3 weeks in 1996.
Petitioner's major construction jobs for 1995 and 1996 were
performed throughout northern Minnesota and included jobs located
in International Falls, Littlefork, Warroad, Roseau, Greenbush,
Crookston, Chisholm, and Ash River. During the construction
season, which is generally from May through November in northern
Minnesota, petitioner maintained four construction crews.
The Associated General Contractors of Minnesota Highway,
Railroad and Heavy Construction Contractors entered into separate
agreements with the International Union of Operating Engineers
Local No. 49 and the Laborer's District Council of Minnesota and
North Dakota on behalf of its affiliated local unions. During
the years in issue, petitioner operated under those contracts
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