CONSENT AND REAFFIRMATION
                                   OF GUARANTY


THIS CONSENT AND REAFFIRMATION, made and entered into as of the _____ day of
__________, 1997 by PETER PFLAUM, PATRICK C. WELLS, EDMUND M. LUNDGREN, ALLAN D.
LUNDGREN and GERALD T. LUNDGREN (collectively, the "Guarantors") in favor of
NORWEST BANK MINNESOTA, NATIONAL ASSOCIATION, a national banking association
(the "Lender").

WHEREAS, the Lender entered into a certain Amended and Restated Demand
Discretionary Revolving Credit Agreement dated as of March 18, 1994 (the "Credit
Agreement") with Lundgren Bros. Construction, Inc., a Minnesota corporation (the
"Borrower") concerning the extension by the Lender to the Borrower of a
$2,200,000 Revolving Line of Credit; and

WHEREAS, the Borrower subsequently requested that the Lender agree to an
increase in the "Maximum Loan Amount" as set forth in that certain Amendment,
Extension and Reaffirmation Agreement dated March 14, 1995, among the Lender,
the Borrower and the undersigned (the "First Amendment"); and

WHEREAS, the obligation of the Borrower to repay advances under the Credit
Agreement was evidenced by that certain Fourth Amended and Restated Revolving
Note dated March 14, 1995, executed by the Borrower in the original principal
amount of Three Million Five Hundred Thousand Dollars and payable to the order
of Lender (the "Fourth Amended Note"); and

WHEREAS, the Borrower has now requested that the Lender agree to an increase in
the Maximum Loan Amount as set forth in that certain Second Amendment, Extension
and Reaffirmation Agreement of even date herewith among the Lender, the Borrower
and the undersigned (the "Second Amendment"); and

WHEREAS, the Fourth Amended Note has now been superseded in its entirety by a
certain Fifth Amended and Restated Revolving Note of even date herewith executed
by the Borrower in the original principal amount of $4,250,000.00 and payable to
the order of the Lender (the "New Revolving Note"); and

WHEREAS, the obligations of the Borrower under and pursuant to the Credit
Agreement, the First Amendment, and Second Amendment and the New Revolving Note
are secured by, among other things, the First Life Insurance Assignment, the
Second Life Insurance Assignment, the Third Life Insurance Assignment and the
Guarantor Life Insurance Assignments (as those terms are defined in the First
Amendment); and

WHEREAS, the payment and performance of the obligations of the Borrower under
and pursuant to the Fourth Amended Note and the Credit Agreement, as amended,
among other things, have been jointly and severally guaranteed by the Guarantors
pursuant to that certain Guaranty dated as of November 5, 1990, executed by the
Guarantors and delivered to the Lender (the "Guaranty"); and

WHEREAS, the Lender is willing to execute the Second Amendment and to extend
advances to or for the benefit of the Borrower pursuant to the New Revolving
Note only upon receipt of this Consent and Reaffirmation from the Guarantors.

NOW, THEREFORE, in consideration of the foregoing Recitals, which are hereby
made a part hereof, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, do hereby
agree as follow:

1. Each of the Guarantors hereby consents to the terms of the Second Amendment
and the New Revolving Note and all of the terms and provisions contained
therein.

2. Each of the Guarantors hereby repeats, reasserts, and reaffirms as of the
date hereof, all of the representations, warranties and covenants contained in
the Guaranty and the documents executed in connection therewith, as if said
representations, warranties and covenants were fully set forth herein.

3. Each of the Guarantors hereby acknowledges and agrees that any and all
references contained in the Guaranty to the term "Note" shall henceforth mean
and refer to the New Revolving Note and that all indebtedness of the Borrower to
the Lender pursuant to the New Revolving Note shall constitute "Obligations,"
the payment and performance of which are absolutely and unconditionally
guaranteed to the Lender by the Guarantors pursuant to the Guaranty.

4. The Guarantors further acknowledge and agree that the Guaranty shall be and
is hereby amended to provide that all references contained in the Guaranty to
the term "Credit Agreement" shall henceforth mean and refer to the Credit
Agreement, as amended by the First Amendment and the Second Amendment.

5. The Guarantors hereby further acknowledge and agree that the Guaranty remains
fully enforceable and in full force and effect in accordance with its original
terms, except as expressly amended hereby and as previously amended in writing,
and is not subject to any defense, counterclaim or right of setoff as of the
date hereof. The Guarantors further acknowledge that the liability of the
Guarantors under the Guaranty is and continues to be joint and several.

6. Each of the Guarantors hereby releases the Lender, and each of its officers,
directors, agents, employees, legal counsel and other representatives from any
and all claims, demands, causes of action, liability, damage, loss, cost and
expense which any of them have paid, incurred, or sustained, known or unknown,
absolute or contingent, as a result of or related to (a) the transactions
evidenced by or related to any of the Loan Documents (as that term is defined in
the Second Amendment) or (b) any acts or omissions of the Lender, or any of its
officers, directors, agents, employees, legal counsel or other representatives
in connection therewith or related thereto.

7. This Consent and Reaffirmation of Guaranty may be executed in counterparts,
each of which shall be deemed an original but all of which, taken together,
shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Guarantors have executed and delivered this Consent and
Reaffirmation of Guaranty as of the day and year first above written.


                                                   _____________________________
                                                   PETER PFLAUM


                                                   _____________________________
                                                   PATRICK C. WELLS


                                                   _____________________________
                                                   EDMUND M. LUNDGREN


                                                   _____________________________
                                                   ALLAN D. LUNDGREN


                                                   _____________________________
                                                   GERALD T. LUNDGREN