South Texas Construction News January 2015 by Construction News

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Volume 3

Number 1

JANUARY 2015

Upgrading to RAM

What’s old is new

L-R: Mike Johnson, branch manager, and nephew Daniel Johnson, operations manager, are ready to do what it takes to keep their customers happy.

Matt Ezell and Keith Webster are proud of this project that recycled an old dairy plant into an auto body and paint shop.

ike Johnson knows Corpus Christi. And he prides himself on knowing the construction industry inside and out in the southern part of Texas. As the former owner of Otto Dukes Tools (recently bought by RAM Tool Construction Supply Company), Johnson has been at the forefront of the bay city’s tool industry since 1991, when he was hired by Otto Dukes as a salesperson. In 1998, he became an owner. In June 2014, that location became RAM Tool’s 31st store and Johnson was pleased to stay on as branch manager. “It was a great opportunity for me and my family,” he says. “I still get to do what I love to do.”

The fact that people in the construction industry have come to know and trust him for many years hasn’t hurt either. “Corpus Christi is different,” he says. “It still functions as a small town.” He can’t say enough about RAM Tool and the people he answers to these days. “It’s good people,” he said. “The executive team is top flight. I’ve never had the pleasure of dealing with people that are so open and receptive. I cannot speak highly enough of the people we work for.” A woman-owned company, Ram Tool was founded in 1967 in Birmingham, AL and is privately owned. There are six continued on Page 14

att Ezell, owner of South Texas Building Partners, and Keith Webster, project manager and estimator, are thrilled they had a big hand in helping recycle an old, dilapidated building into a renovated space for another business. Ask anybody who has lived in Corpus Christi for any length of time about the Hygeia Dairy Company and they will know exactly what you are talking about. For many years, milk was gathered from area farms and trucked to the dairy plant, where it was packaged into plastic containers made on site and shipped out to stores and customers. But the buildings had not been used in almost 25 years when STBP got the job

to renovate it for another well-known name in town, Lundquist. The Lundquist name had been associated with cars – selling them and various offshoots from that. Now, Lundquist Paint and Body has moved into the 40,000-sf space. That experience has been so rewarding for STBP that they want to search out and find other opportunities to turn something old into something new. “When you do something like this, you can get added value for your clients,” Ezell says. “And, it’s green.” He points out with the cement tilt walls and other features of the building, the owner has gotten a new home with good bones for a lot less than he would continued on Page 14

‘Pharr’ and away the best

. Wilson Construction Company, located in McAllen, recently finished a unique project, the first Honda prototype facility of its type constructed by the company. The project is Clark Knapp Honda, owned by Clark Knapp Properties, Ltd. The dealership is located in Pharr. Since it’s founding in 1957 by Darrell Wilson, D. Wilson Construction has built scores of the most recognizable structures in the Rio Grande Valley, including three museums, major hospital facilities and numerous churches, including the remarkable Basilica of Our Lady of San Juan del Valle. The Honda dealership project was a $6,354,563 project with a start date of July 1, 2013 and a finish date of May 17, 2014. The construction consists of 46,309sf. The project an expansive, two-story Honda auto dealership that includes a

show room, administrative offices, sales, repairs and service departments and a separate used car facility. This new facility consists of a show room, administrative offices, sales, repairs and service department. The facility front utilizes a thick concrete curtain wall, with curved wall covered with Aluco-Bond™ panels. Features include the company’s signature blue cylinder entry and wave canopy, designed by Interbrand Design Forum. Interior finishes include metal stud and drywall-curved walls covered in vinyl. Porcelain tiles, VCT, carpet squares and rubber Pro- Cote™ flooring was used throughout the new facility. Interior and exterior lighting are Honda design. According to D. Wilson President and CEO Bill Wilson, the project did not incur any challenges that affected the construction progress as the owner, architect and engineers were all local and The dealership project by D. Wilson Construction Company was a $6 million job.

continued on Page 14

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South Texas Construction News • Jan 2015

Hits the ground running

Bigger and better

The new state-of-the-art machine service facility opened by HOLT CAT in San Antonio in September will allow the company to answer a growing demand for heavy equipment service in San Antonio and South Texas. At an open house Dec. 3, Joseph Willrich, BEFCO Engineering, the engineer for the new facility; Neal Carmichael, Mike Puryear and Tony Shedrock, HOLT CAT; and Scott Shaheen, Hooker Contracting Company, the general contractor for the project, enjoyed welcoming guests to the 44,000-sf facility. –cw

‘Tis the season

hen BlueLine Rental decided to explore Corpus Christi, they tagged a man with 15 years of sales experience to head the team. Colin Martin, branch manager, has spent most of those years in equipment manufacturers regional sales. According to Martin, opening the branch in Corpus in July 2014 was a good move. “Business is very good,” he says. “Month over month we’ve seen steady growth.” With a crew of eight full-time employees, Martin says the “greenfield” location of Corpus Christi is a good fit for the equipment rental business. The diverse array of equipment offered – from excavators to bulldozers to aerial – has been well received in a city with needs related to oil, industry and construction. “It’s an effort to expand their footprint across Texas,” Martin said. “The company is in a rapid growth mode.”

Raba Kistner employees from the Rio Grande Valley gathered for the annual Christmas party.

aba Kistner Rio Grande Valley offices (McAllen and Brownsville) combined for the annual Christmas party. The event was at Arturo’s Bar & Grill in Weslaco and included dinner, dancing, prize drawings and some game playing. –cw

Dennis Charkow (McAllen) is in the mood with his Santa hat.

L-R: Branch manager Colin Martin and inside sales rep Jason Laningham are ready to help with equipment rental needs.

Martin attributes the success of the new location to all aspects of the industry, but says it may be trending a little more towards oilfield. “That’s probably just because of the location (to the Eagle Ford Shale), but it is close to even (across the board),” he said. After 15 years of traveling extensively for his career, Martin is happy – and says his family is too – to settle into a position where he is home most nights. “I’ve grown tired of commuting,” he said. “I’ve come back to my roots.” Born and raised in Corpus Christi, Martin is married to Ann and has two children, Harper, 14 and Harris, 11. Both of his sons are heavily into baseball. “I needed more of a family life,” he said. “I was starting to miss all the cool stuff.” The company is planning major renovations beginning in January and will have an open house when all is finished. –cw

‘Web’-site construction

n Feb. 1, Construction News will be launching a brand new version of its website at constructionnnews.net. “We are delighted to be able to upgrade our site for our readers and customers,” said Buddy Doebbler, publisher of Construction News. “Additionally, we will bring in new readers from around the state and nation.” Construction News, with five papers in Texas’ growing areas, now enters a new age, taking advantage of technology to bring the content its readers have come to expect to the web.

“The staff at Construction News has spent many months working on the new site,” Doebbler said. “What is really exciting about this is that now we can bring our readers some of the late-breaking news as it happens. And while you will still look forward to receiving your Construction News monthly in order to get all the full news and advertising it contains, you can now expect to find photos and information quickly from the events we cover, as well as much more.” One thing the editors of the five papers will accomplish is to bring news from home to those who may be far from their homes, such as military men and women. “We encourage our readers to check out our new web site. Please let us know what you think,” Doebbler said. “We will continue to work to upgrade the site to make it a better viewing experience for our readers, so your comments and suggestions are always welcome.” –cw

South Texas Construction News • Jan 2015

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New Year’s transitions at HOLT Archer stepping down after 43 years

Hicks turns reins over to Campbell

he New Year brought tremendous change to HOLT CAT. One of the pillars of the company, Allyn Archer, president and COO, retired Dec. 31. Dave Harris, executive vice president and general manager of HOLT CAT, has transitioned into his role at company headquarters. Archer started with HOLT in April 1971 on the shop floor as a mechanic, working his way up through the company. In 1987, the L-R: Allyn Archer, president and COO of HOLT CAT, retired at the same year he became end of 2014 and passed the job on to his successor, Dave Harris, who has previously served as executive vice president and general general manager of manager. B.D. Holt Company, the company merged with Holt Machin- I’m very proud of that.” With the company since 1997, Harris ery in San Antonio. After 28 years as president, Archer started as regional manager at Peter counts several highlights in his tenure, in- Holt’s former dealership, Holt Ohio. In cluding the creation of HOLT’s Vision Mis- 1998, he came to Texas as general mansion and Values that continue to guide ager of the Machine Division, and three the organization today. Since ’87, the years ago, he was promoted to executive company has grown from one of the vice president and general manager. smallest Caterpillar dealers to the largest “I will continue to use our values as Caterpillar dealer in the U.S. representing the basis for additional and stable growth going into the future,” says Harris, noting 118 counties in Texas. At 68, Archer plans to get more in- that a big job in the next few years will be volved running his family ranching and continuing the transition to the fifth genfarming business in Uvalde County, fish eration Holts, Corinna Holt Richter and more at the coast, and spend more time Peter John Holt, taking over as dealer principals. with his three grandchildren. “I’m leaving it in the worthy hands of “Allyn has been a wonderful coach Dave Harris, my successor,” says Archer. and mentor to me through the years, and “We have set the foundation for much that will serve me well as I take on his regrowth in the future at his direction, and sponsibilities for a few years.” –mh

or Howard Hicks, the New Year brings a major life change with his retirement from HOLT CAT as the equipment dealer’s vice president of public affairs official as of Dec. 31, 2014. For Jim Campbell, the New Year finds him transitioning into HOLT CAT as senior director of public affairs. Having earned his master’s de- L-R: Howard Hicks, HOLT veteran team member, has now retired, and gree in agricultural Jim Campbell is transitioning into his new position at the company’s San Antonio headquarters. economics from Texas A&M University, Hicks, now 68, be- HOLT. His previous role was consulting gan his 38-year career at HOLT in May for public relations and marketing firm 1976. In retirement, he plans to be more the DeBerry Group, and he had done involved in his church’s ministry, work on consulting work for HOLT under contract more projects at his family’s ranch in the with Hicks. He is excited to return to a Hill Country, and spend more time with public affairs role as he once held with his wife of 45 years, Helen, and their three the City of San Antonio and CPS Energy. children and six grandchildren. Also an Aggie, Campbell holds a bache “While I’m still in good health, I want lor’s degree in political science and ento do some different things,” says Hicks. joys being “one of those rare people “It’s been a great career. I love the com- that’s actually doing what I was trained pany. I love the people, but I don’t know for in liberal arts.” how many years I’ve got left, so I thought Campbell is already undergoing a I better take advantage of whatever time sort of orientation program, meeting that is. To me, it’s more of a career change with 60 different individuals and familiarthan it is a retirement. I don’t plan to slow izing himself with them and their roles at down much. I just plan to devote my en- HOLT. He says this helps him better unergy to other things.” derstand the company and industry as In the last few months of 2014, Camp- well as build a rapport with people he will bell made his own career change joining need to work with to be successful. –mh

Construction News ON LOCATION

Holiday in the Valley

Ready for the holidays

Associated General Contractors Rio Grande Valley Chapter had their holday open house on Dec. 3 at the headquarters in Harlingen. Tamales and plenty of holiday cheer completed the picture. –cw

South Texas

CONSTRUCTION NEWS

Cyndi Wright, South Texas Editor: STeditor@ConstructionNews.net 210-308-5800 Publisher . . . . . . . . . . . . . . . . . Buddy Doebbler Editorial/Production . . . . . . Reesa Doebbler Production Manager . . . . . . . . . Sue Johnson Sales Representative . . . . . . . . Kent Gerstner Administration . . . . . . . . . . . . . . Kevin Hughes Construction News Ltd. Home Office P.O. Box 791290 • San Antonio, Tx 78279 210-308-5800 Fax 210-308-5960 www.ConstructionNews.net San Antonio • Austin • Dallas/Fort Worth Houston • South Texas

If you are a construction-related company in Aransas, Atascosa, Bee, Calhoun, Cameron, DeWitt, Dimmit, Frio, Goliad, Hidalgo, Karnes, Kenedy, Kleberg, LaSalle, Live Oak, Maverick, McMullen, Nueces, San Patricio, Starr, Victoria, Webb, Willacy or Zavala county and are not receiving a free copy of the South Texas Construction News, call for a Requester Form or visit our website.

The South Texas Construction News (ISSN #2327-4670) is published monthly by Construction News Ltd., dba South Texas Construction News, and distributed by mail to construction related companies in the South Texas area. All submissions should be mailed to our editorial offices. We reserve the right to edit any materials submitted. No fees for materials, copy or photographs submitted will be due unless agreed upon in advance in writing. Submissions will be published at our discretion on a space-available basis. Construction News, Ltd., dba South Texas Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error. Publisher reserves the right to reject any advertisement at any time.

Jordan Wilson, Laurie Galvan and Rick Dungan of Ambrose Construction Ltd. In Corpus Christi are in the holiday spirit. The company was awarded “AGC Subcontractor of the Year” from 2009-2012. –cw

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South Texas Construction News • Jan 2015

New standards for revenue recognition Lance Trammell, Principal - Assurance Services Lane Gorman Trubitt, PLCC Dallas, TX

n May 2014, Financial Accounting Standards Board (FASB) released the new accounting standard on revenue recognition with the intent to provide a comprehensive, and consistent, method of accounting for revenue across entity, industry and geographical lines. While there are some exceptions, most industries are subject to the new standard. The reasoning behind the change is to reduce inconsistencies and the risk of recognizing revenue incorrectly, to reduce the options of industry-specific U.S. GAAP guidelines and to create a collaboration between FASB and International Accounting Standards Board (IASB) for improved and converged rules. The guidance is based on the overall premise that the entity should recognize revenue in an amount that reflects the actual consideration that the entity expects to be entitled to. In order to determine the amount of consideration that the entity is entitled to, the standard provides for a five step process that includes: 1) Identification of the contract 2) Identification of the performance obligations 3) Determine the transaction price 4) Allocate the transaction price to performance obligations 5) Recognize revenue upon the satisfaction of performance obligations Contracts, whether written, oral or implied based on the entity’s customary business practice, create the enforceable rights and obligations. Consistent with the current standards relating to contract accounting, some contracts can be combined if they are negotiated together or if successful completion is interdependent on one another. Additionally, contracts can be modified due to change in scope or pricing. The performance obligations within the contract are the determinants for revenue recognition. The performance obligation is the promise within the contract to deliver goods or services to the customer. Revenue is recognized when or as the performance obligation is satisfied. Multiple performance obligations within a contract may have specific costs or may be satisfied at different periods in time, therefore, contractors will be required to determine distinct performance obligations within the contract in order to properly allocate the transaction price among the obligations. Transaction price is the actual amount that is considered probable to be collected from the customer upon satisfaction of the performance obligation. Transaction price is not necessarily the

stated contract amount, but instead the contract amount net of any variable considerations. Revenues are recognized upon satisfying the performance obligation. This is considered to occur either 1) over a period of time or 2) at point in time. These methodologies can be considered similar to the current percentage of completion and completed contract methods of accounting used by contractors. Revenues recognized over a period of time must meet one of the following: 1) The customer simultaneously receiving and consuming the benefits of the entity’s performance as the service is performed 2) The entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced 3) The performance does not result in the creation of an asset with an alternative use to the entity and the entity has a right to receive payment for performance completed to date If the above criterion is met, the “period of time” is measured based upon input or output methods. If choosing at a point in time, the ownership of the project under contract will transfer once the performance obligation has been met. The new five step process may not be so “new” to contractors, as many of the considerations regarding performance obligations, transaction pricing considerations and timing of revenue recognition are all points that many contractors currently use in their bidding, estimating and performance activities. For public companies, the new regulation goes into effect on Dec. 15, 2016 and on Dec. 15, 2017 for nonpublic companies. Founded in 1950, Lane Gorman Trubitt PLLC (LGT) is one of the largest certified public accounting firms headquartered in the Southwest. Dedicated to serving the middle market, the firm represents a broad range of clients, from individuals to public companies, in a variety of industries. LGT offers traditional accounting, audit and tax services, as well as various other specialized services. LGT has launched three affiliated companies, LGT Financial Advisors, LLC, LGT Insurance Services Inc. and LGT Retirement Plan Solutions.

Invisible exclusions, part I Charles E. Comiskey, Sr. V.P. Brady, Chapman, Holland & Associates, inc. Houston, TX

any insurance policies today include “invisible” exclusions – exclusions that may not be brought to the attention of the insurance buyer and that will not be declared on a certificate of insurance. This article will address three of the more dangerous such exclusions and what to do about them. But first, a little background: Construction agreements include provisions requiring indemnification of the upstream party (the party requiring the coverage). In Texas, it remains permissible to require indemnification for the upstream party’s joint, concurrent and/or sole negligence at least with regard to an injury to an employee of the downstream party (the party being required to provide coverage) or their subcontractor, and for any municipal or residential work. General liability insurance customarily provides “contractual liability” coverage applicable to such provisions, covering liability for bodily injury and physical injury to tangible property arising from a contractual assumption of these exposures. Beware: This contractual liability coverage is being deleted or eroded in a variety of manners that are sometimes difficult to recognize. CG 21 39 10 93, Contractual Liability Limitation Endorsement Contractual liability coverage is provided in a general liability policy through a series of six definitions of an “insured contract.” These definitions are applicable to an exception to an exclusion of the coverage provision. Confusing, right? What’s critical to know is that the sixth definition is the one that provides coverage for liability assumed in an indemnification agreement. The Contractual Liability Limitation Endorsement deletes that sixth definition, completely eliminating insurance funding for that indemnity, and should be avoided at all cost. CG 24 26 07 04, Amendment of Insured Contract Definition This endorsement modifies that sixth definition, eliminating claims based upon allegations of the sole negligence of the Indemnitee (the upstream party). This is problematic for two reasons: 1. As stated above, most indemnification provisions do require that the upstream party be held harmless for at least some portion, if not all, of its sole negligence. The downstream party will be held responsible for such protection, whether funded by insurance or not. 2. The most common type of claim arising from ongoing work is what attorney’s refer to as a “third party over action.” This

occurs when an employee of a downstream party is injured on the job. He can make a workers’ compensation claim against his employer, but also retains the right to bring litigation for that injury. That said, he cannot sue his employer due to the exclusive remedy rule of workers’ compensation, so suit is brought solely against the upstream contractor or owner, who then demands protection from the downstream party under the indemnification agreement. That type of claim is usually funded by general liability insurance, but this endorsement eliminates coverage for the assumption of another party’s sole negligence. Modification of the Employer’s Liability Exclusion Another way that insurance companies eliminate cover for suits brought by employees of a downstream party is to change the wording of the Employer’s Liability exclusion. This provision, part of every general liability policy, excludes coverage for injury to an employee of the insured, but has an exception stating that the exclusion does not apply to liability assumed by the insured under an “insured contract.” Some insurance companies delete the exception to this exclusion, thereby eliminating the very provision that would otherwise provide coverage. Discuss these exclusionary endorsements with your insurance broker, and verify that they are not included in your insurance program. But what if you are the upstream party depending on a certificate of insurance? Two steps can be taken: 1. In your insurance requirements, state that these endorsements are prohibited on the downstream party’s insurance program; and 2. Require a copy of the Schedule of Forms and Endorsements page verifying that they haven’t been included in the underlying insurance program. Charles E. Comiskey, CPCU, CIC, CPIA, CRM, PWCA, CRIS, CCM, is Sr. V.P. of Brady Chapman Holland & Assoc. and is National Chairman of the Construction Insurance Practice Group of RiskProNet International, the 5th largest brokerage organization in the U.S. He can be contacted at 713-979-9706 or charles.comiskey@bch-insurance.com

Submitted to Construction News

Celebrating the season

National Association of Women in Construction Corpus Christi (NAWIC) held its holiday celebration at Cafe Hester at the Art Museum of Corpus Christi. Included was an ornament exchange. L-R: Cathy Beaudin, Lisa Newcomb, Lisa Huerta, Teresa Salman-Smith, Amanda Kirchoff, Patricia Livas, Darlene Lee Omana and Michelle Patton –cw

South Texas Construction News • Jan 2015

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Make it white Responding to worksite accidents Marc Young, Founding Principal Cokinos, Bosien & Young Austin, TX

he construction industry routinely leads all other industries in the total number of deaths per year, therefore it is imperative to understand the role of your company and your legal representative in the event of a fatality or major incident on the construction worksite. Having a plan of action can assist your company and your legal team in preparing for, and handling, a major incident, should it become necessary. BEFORE AN ACCIDENT OCCURS • Create an Emergency Response Plan (ERP) • Have your risk manager and safety committee review the ERP with your attorney so there is no confusion during a response. • Your attorney should have in his/her vehicle a “go-bag” containing tools necessary to document and investigate an incident at a moments’ notice. IMMEDIATE STEPS IN THE EVENT OF A MAJOR ACCIDENT • The immediate response should always begin with a 911 call at the first indication of a major injury or fatality. • Remove all non-essential workers from the area. Secure an area around any continuing danger or hazard to workers. • Notify key corporate personnel as soon as the area is secured and individuals are no longer in danger. • The attorney should be called to the scene to assist with the investigation and OSHA visit. • Notify insurance carrier. • Once your attorney arrives at the site, meet in the company’s work trailer as soon as possible. Confirm that Emergency Response Plan has been followed thus far. INVESTIGATION Your attorney should begin conducting the investigation before the site conditions change, witnesses leave and equipment is moved. Designate a private place to talk - typically the job trailer is the best place to perform interviews. Your attorney may need someone with technical expertise from your company to participate in the interviews. Some attorneys don’t pursue recorded statements at this stage because any party in the subsequent litigation will be entitled to that recording. Your attorney may take photographs to document the scene and everything relevant to the incident, but avoid any conditions such as blood or medical waste. If equipment involved in an accident was moved prior to emergency responders arriving, it is imperative to establish exactly where it was at the time of the accident. OSHA OSHA must be contacted within 8 hours of a fatality, or within 24 hours of a work related in-patient hospitalization, amputation or loss of an eye. OSHA has a 24-hour fatality contact number at 800323-OSHA. However, it’s not uncommon for OSHA to hear about the incident through media accounts and drive directly to the site. Before OSHA investigators arrive, your attorney may advise you of any observable conditions that may result in violations of various OSHA standards so they may be immediately corrected. An OSHA investigator is not limited to the

site of the injury when investigating an accident, and may identify numerous citable conditions unrelated to the accident. Consult with your attorney about drafting and implementing a written policy regarding whether to allow warrantless OSHA investigations before it is ever needed. MEDIA • Understand what deadlines the media are under and advise them that you will get back to them after you have had an opportunity to conduct a reasonable investigation. • Answer questions as directly and as completely as possible. If you don’t know the answer to a question, be honest. False information can damage credibility and the public’s perception of your ability to tell the truth and convey accurate information. • Avoid using “no comment” as an answer. • Never give “off-the-record” information. • Give the facts as you know them and cite sources. • If the emergency or disaster is long term in nature, it is important to hold frequent briefings or press conferences. • Advise all employees not to speak to the press or give statements. Provide employees with a designated individual or telephone number to refer inquiries. While no plan can foresee every detail of a catastrophic event, being prepared with the basic elements and securing legal representation before an event can mitigate further injuries to workers and protect the legal position of the company in subsequent litigation. Marc A. Young is a founding principal of Cokinos, Bosien &Young, a full service law firm with offices in Houston, San Antonio, Dallas and Austin. For more information on our services, please visit www.cbylaw.com

AGC CC members enjoyed a “winter wonderland” at the annual Christmas party.

he annual Associated General Contractors Corpus Christi (AGC) Christmas mixer saw members chilling out in a “Winter Wonderland.” Executive director Debbie Schibi said they don’t see a lot of snow in Corpus Christi, so they made it a white party where they served white chocolate popcorn, spiked

eggnog, snowballs (chocolate covered cake balls, gouda cheese balls, white truffles, etc.). Door prizes were handed out for members who could name all of Santa’s reindeer and the most popular Christmas movie and song. “What a laugh that was,” Schibi said. –cw

Officers named

he American Institute of Architects Lower Rio Grande Valley Chapter (AIA) installed its 2015 officers Dec. 6. Named were: Charlie Garcia, AIA, (Gignac and Associates), president; Manuel Hinojosa, FAIA, (Rike Ogden Figueroa Allex Architects), president-elect; Meg Jorn, (LRGV-AIA), immediate past president; Humberto Rodriguez, AIA, (Rike Ogden Figueroa Allex Architects), treasurer/secretary; Cesar A. Roque, AAIA, (Rike Ogden Figueroa Allex Architects), associate director; Perry Vaughn, (RGVAGC), executive director; Carmen Perez Garcia, executive director, LRGV-AIA. –cw

Humberto Rodriguez

Charlie Garcia

L-R: Carmen Perez Garcia, Perry Vaughn and Meg Jorn

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South Texas Construction News • Jan 2015

What were you doing in Victoria? I was working. After high school, my dad thought I should go to college and be a schoolteacher. I said no. (laughs) I told him I already had found a job with a cotton rating company. He said no. (laughs)

Irene Haeber Owner

Haeber Roofing Company Corpus Christi

rene Haeber is strong-willed and independent minded – personality traits that most likely come from her German and Austrian background and her early years on a farm. Not one to shy away from taking on challenges due to perceived limitations, she has been able to envision what she wants and figure out a path to get there. At a time when women-owned companies are becoming the norm, Haeber blazed that path many years ago. And now, she has one more first to add to her list. On Oct. 2, Haeber, co-owner of Haeber Roofing, was the first woman to receive the Curtis Blackwell Memorial Award, an award given annually for outstanding contributions to the roofing industry and Roofing Contractors Association of Texas. Tell me about your early life. I grew up in Hallettsville on a farm. I have one brother and one sister. Life on a farm can be hard. Yes. We grew cotton, I picked cotton. We grew corn, I picked corn. We grew tomatoes for commercial use. We had to plant them and pick them After my parents stopped growing tomatoes, we grew cucumbers. We got to pick those, too. (laughs) In the pasture, we had pecan trees and from the end of October until the end of December, we picked them up. I didn’t have any free time during school holidays. I was the oldest. My sister was seven years younger than me, so I got to have babysitting chores, too. Tell me about your first husband. His name was Robert Cluiss. We met in Victoria. He passed away after 12 years of marriage. He was in the construction business.

So what did you do? I enrolled in Baldwin Business College where I took the executive secretary course. At my first job, I did accounting in the morning and worked with the boss in the afternoon. He was hard of hearing, so I had to answer the phone. If he didn’t want to talk to them, he would tell me what to say and I would talk to them. After one year, the company was sold. The head bookkeeper asked for too much money from the new owners, so that morning when I walked in, I had her job. I stayed there eight years. My sole responsibility was all the accounting. The company went out of business, but they kept me on to manage an inventory of rental property, homes and mortgages they had. I did that for a year. Then, I got offered a part-time position with an oilfield workover rig company, so I worked there parttime and part-time at the other business. Where did you go from there? In 1962 we moved to Corpus Christi and I hated it. It was flat and humid and cold in the winter. After awhile, I guess I got acclimated to it. I worked for another roofing company.

Irene Haeber is the first woman to be awarded the Curtis Blackwell Memorial Award.

Your met your second husband in Corpus? Yes. I actually worked with Ralph Haeber in the roofing business while I was married to Robert. I knew Ralph for 13 years. He was a roofing superintendent. Four years after Robert passed, Ralph and I got married in 1977. He was still a superintendent in the field.

Are there grandchildren? Yes! I have a grandson, Marshal, who is 21. He is a senior at the University of Texas. My granddaughter is Sara. She is 17 and a senior at Mary Carroll High School here.

What happened next? We moved to Austin. Ralph worked for a roofing company, but he spent all his time at a jobsite in Dallas/ Ft. Worth. That doesn’t sound like fun. It wasn’t. And then, when that job ended, they wanted him to move to Baton Rouge. But he said, no. He wasn’t leaving Texas. He was from Corpus Christi, right? Yes, he was and he knew everybody.

Are you planning to retire anytime soon? Well, I don’t knit, crochet or sew. I don’t play golf. So, I guess I’ll just keep working as long as my health allows.

Is that why you decided to open Haeber Roofing there? Yes, he grew up here. I did all the paperwork for the company while we still lived in Austin. We decided on Corpus because of his contacts here, we knew there were lots of jobs and we knew there was a good job pool. There was no shortage of jobs. At that time, we were more residential. Now we do commercial only.

You’ve always worked. What do you like about it? I enjoy meeting people. I do miss the interaction with people when we moved from residential to commercial. But, it’s always a challenge. There’s never a dull moment. You get one aspect out of the way, another is staring you in the face. Every day is a surprise and a gamble. It’s a gamble every day when you open that door.

When did that change? Ralph passed away in 2008. We were already beginning to shift to commercial at that time. There was a lack of good residential estimators.

Speaking of gambling, you still like to do it, right? I love to play the slots. Most of the traveling I do now is to different casinos. If you don’t like one, you can go to the next one. I like to play for a while and then just wander around. You get to meet new and interesting people.

What did you and Ralph like to do together? Gamble! In the early 1990s, we went to Las Vegas for the first time as the guests of a distributor salesman. We really had fun. We loved it. We also have a ranch with cows and we used to go there. We also liked to hunt. I don’t do it anymore. It’s not fun to go to the ranch without him.

Ralph Haeber grew up in Corpus Christi and loved to take part in the fishing tournaments.

I bet you are proud of them. They grow up too fast. They have always been involved in so many things. Marshal is an Eagle Scout and a Black Belt. He was also very involved in Little League. Sara was on drill team and she shows rabbits in FFA. She is also an altar server at church. They were both in the National Honor Society.

When Ralph passed, did that leave you alone at Haeber Roofing? No! We had already brought my daughter, Sharon, and her husband, Don Rucker, on in 1992. They met when they both worked for TxDOT. They are both shareholders with me.

And now you have received the Curtis Blackwell Memorial Award. I got involved in Roofing Contractors Association of Texas in 2008, when Ralph passed. They asked me to be on the board. I’ve served on the board of directors and I’ve been vice president on two occasions. I also like to help with ticket sales for our raffles that fund the scholarships. I’m hoping that we will be able to increase the amounts and the numbers of scholarships we give to kids whose parents are in the roofing industry. I’m also active in the fishing tournament. –cw

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South Texas Construction News • Jan 2015

Page 7

ell I hope everyone had a wonderful Christmas and a great New Year holiday. I am very excited to start the year off on a good foot, or should I say a good leg after missing out on most of last years fishing. I was able to get in some trips in September and October as the fishing seemed to pick up after a mediocre summer. Hopefully things will be much different this season with the new changes on speckled trout regulations implemented by Texas Parks and Wildlife that took effect on September 1st last year. I am also looking forward to seeing all my clients and friends this season and continue making memories in the outdoors that seem to last a lifetime.

Looking into the New Year by Capt. Steve Schultz Sponsored by: Premier Yamaha Boating Center, Majek Boats, E-Z Bel Construction, Power Pole Shallow Water Anchor, Aggregate Haulers, Interstate Batteries, Pure Fishing, Mirr-O-Lure and Columbia Sportswear.

As most of you already know, winter fishing is by far the best time of the year to catch trophy size specks. Although our winters sometimes may not feel like winters you see up north, there is definitely an inconsistency in the weather that triggers fish to feed as the barometric pressure changes. Most of the larger specks tend to feed up before major changes in weather and may go for several days before feeding again. Larger trout don’t do

Construction News On Location

Christmas and football

Well-known Corpus Christi businessman and former Marine Joe Elizondo, Greenwood Doors, has a Cowboys Christmas Cow to herald the season in downtown. –cw

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real well in colder water temperatures; they tend to stay in deeper water and in soft mud bottoms trying to keep warm and conserve energy. As water temperatures progressively warm, they will venture out in search of their next meal. Larger mullet, menhaden and other finfish typically are the choice of diet for hungry specks, subsequently keeping them satisfied until the next cold snap arrives. This is the reason so many anglers use larger baits and plugs in winter trying to imitate a wounded fish that make easy prey for lethargic trout. I’m by no means a psychic knowing when fish will eat, what they will eat and how big they will be. There is also no way anyone can guarantee you will catch a trophy trout on any given day. I have many clients that have fished many days each year and have never caught a trophy quality speck. Then there are the clients that catch one on their first outing, and say, “That’s the biggest fish I’ve ever caught.” I can tell you that your chances are better if you put in some sort of an effort during the prime months.

Every month this year in my column I will feature a product that I believe will help make you a better angler. From boats, tackle apparel or electronics, I will discuss the advantages you will gain by using these products. While we are on the subject of winter trophy trout fishing, let’s start with the lures of choice this time of the year. Starting with the most popular will be the Corky line of lures by MirrOlure. There are several styles of Corky’s available, Original, Fat Boy and Devil. All are slow sinking mullet imitations that boost big results when presented in front of feeding fish. These lures became popular in 1996 when James Wallace of Houston landed a 13-lb. 11-oz. speck on the original corky. This is one lure I will not leave without as I ease over the edge of the boat this winter! To schedule your next bay fishing trip, give Capt. Steve Schultz a call at 361-8133716 or 361-334-3105 or e-mail him at SteveSchultzOutdoors@gmail.com. Already booking for the 2015-fishing season. Good luck and Good Fishing.

SHARE YOUR PHOTOS . . . fishing, hunting, skiing, biking, racing, or any outdoor activity or sport. There is no charge to you. Email to: STeditor@constructionnews.net or call 210-308-5800(home office) Ask for Cyndi

Page 8

South Texas Construction News • Jan 2015

Ken Milam’s Fishing Line Since 1981, Ken Milam has been guiding fishing trips for striped bass on Lake Buchanan in the Texas Hill Country,. You can hear Ken on radio on Saturday and Sunday mornings, 6-8 AM on AM 1300, The Zone – Austin, or http://www.am1300the zone.com

he passing of the holidays always reminds me of a passing storm. It’s exciting and engaging while it’s going on, but always a relief when you get to the blessed calm after the storm. It is always nice to get back to normal and start looking forward to what’s next – Spring! I know, not yet. We still have a little more football to go, some more cold fronts and time to pass. I always figure any time after winter solstice is getting closer to spring bit by bit.

get ready! As mild as the winter temperatures have been this year I wouldn’t be surprised if they start running upstream on their spawning runs a little early this year. This usually happens around Valentine’s Day, give or take a week or three depending on the weather. Keep in touch with your tackle shops and fishing reports. When the run begins the word spreads like wildfire. On low lakes and rivers the run may not happen in the usual places for lack of water. This is where good current information is really important.

The tournament trails are getting started so the bass boats will start moving again. If you really get lucky and land a 13-lb. or better largemouth bass – you still have time to get in on the Toyota ShareLunker program until April 30th.

If you love jug lining for blue catfish, get those jugs ready. From now through February is when you can catch the big ones. You want to concentrate on areas where the river and creek channels converge.

These nice warm sunny afternoons are starting to make me wonder how long it will be until the crappie start moving up into shallow water around structure to start wanting to bed. All you need is some frisky minnows or your favorite jigs to catch a nice mess of crappie. If the weather gets cloudy and cold they will go

Spring’s acoming! Be sure you have your boat running good and always get good weather information before you set out. Weather changes fast this time of year. Fishing the day before a cold front comes through will usually be much better, and you want to avoid those old windy days as a front moves through. High pressure systems tend to keep fish from biting.

back deep and wait for the next nice spell to come shallow again. You just have to catch them when the catching is good. Stripers and hybrids are loving the colder water. They are chasing shad in open wa-

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ter under the birds and feeding hard so they can be as strong and healthy as possible for their spawning run, later in the spring. Except for Lake Texoma, stripers can’t successfully spawn in Texas because we don’t have the right conditions for the eggs to hatch. Don’t tell the stripers though, they don’t know the difference and they will put all their energy into trying to reproduce. As they school up and chase shad they will give us some of the best freshwater fishing to be had! If white bass are more to your liking, then

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If you plan on booking some guided fishing trips this spring, you need to get your reservations pretty quick. It looks like we are getting ready for a nice season! Fish On!

Honoring the fallen

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Employees and their children in Belton run an obstacle course as part of that team’s fundraising efforts for A Soldier’s Child Foundation.

SCO Equipment, a Texas-based construction equipment distributor, presented a check to A Soldier’s Child Foundation (ASC) in the amount of $262,707 to benefit ASC’s ongoing efforts to provide birthday and Christmas gifts for children of fallen soldiers. The check resulted from a yearlong effort by local employees at ASCO’s 22 locations to benefit ASC in 2014. ASCO has a corporate and personal commitment to community and philanthropy, selecting deserving organizations each year to benefit from the efforts of their employees and staff. Employees at each ASCO location

determined the individual fundraising efforts. ASCO and the founding Wright family matched all money raised to reach the total amount. “Giving back to our communities has always been an important value of ASCO and our family,” said John Wright, one of the third generation owners. “It’s gratifying to see our employees nominate and support this effort on behalf of A Soldier’s Child Foundation. It’s an honor to support the families of those who died in service to their company.” The $262,707 check was presented to A Soldier’s Child Foundation and will be distributed throughout the year. –cw

South Texas Construction News • Jan 2015

Page 9

Builder in Corpus vying for title

The Christmas bowl

EFCO, R.E. Friedrichs Company in Pharr, brought employees together for a Christmas party on Saturday, Dec. 20. The party was held at Flamingo Bowl in McAllen. –cw

Owner Dickie Friedrichs opens his Secret Santa gift.

This home on the island transforms every year into a celebration of the season.

he home of James Mazoch, a builder in Corpus Christi, was picked from thousands of entries in a USA Today contest for best Christmas lights in the nation. His home was entered into the contest by his son and competed against 19 other selected entries. The contest ended on Dec. 17 and the winner was announced on Dec. 23. Located at the end of Whitecap Blvd., the display consists of more than 40,000 LED lights synchronized to holiday music that can be heard on 89.3 FM radio. Features of the display include a gigantic, animated nativity scene, singing pelicans, brilliantly colorful palm trees and other favorite characters. Mazoch says he is excited about the contest, but that’s not the main reason for the incredible display. He started doing it more than 20 years ago for his son and now the neighborhood isn’t going to let him get away without this special celebration of the

season. "We didn't do it about three years or four years ago," Mazoch told the Corpus Christi Caller Times. "And people would come over asking if I was sick, what's the matter with him, how come he's not out there doing stuff. So, people really depend on it, ya know the people in the neighborhood, they really enjoy it, they're glad I do it." On the Facebook page for the Christmas display, the Mazoch family posted the following: “Thank you for the amazing amount of support and outreach from the community during the USA TODAY 10Best contest for the Nation's best private light display! We are awaiting voting results and polls are now closed ... This experience has truly been a blessing. We will continue to provide the best holiday family light display we can for years to come. You can still visit us through the new year! Merry Christmas from our family to yours.” –cw

Employees and their families got together for a group photo.

SEND IN YOUR PHOTOS . . . fishing, hunting, skiing, biking, racing, or any outdoor activity or sport. Construction News ON LOCATION

The news has a nose for BBQ

Holiday metal Monterrey Iron & Metal hosted its holiday celebration Dec. 11 at El Progresso on Guadalupe Street. –mh

L-R: Joshua Fosmire, customer and public relations for Monterrey Iron & Metal, and Jack Vexler, CEO and third-generation owner.

The Construction News team at Construction News headquarters in San Antonio hosted a Christmas barbeque Dec. 19. L-R: Buddy Doebbler, publisher; Jim Reilly, sales; Cyndi Wright, managing editor; Sue Johnson, production manager; Mary Hazlett, San Antonio editor; Kent Gerstner, sales – and barbeque cook! –mh L-R: Zulema, Maryann, Alan, Marylou

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South Texas Construction News • Jan 2015

Cactus flowers in Pleasanton

Civil treatment

Cactus Wellhead has grown in the Pleasanton area by leaps and bounds.

hen Cactus Wellhead’s first branch manager at its new location in Pleasanton walked into work the first day, he found a folding chair in the front office and a forklift in the shop. But times have changed for the branch that opened in 2011. The Pleasanton branch now has 75 employees and nationwide, the company boasts 226 employees, according to administrative assistant Casy Carrell. “The Pleasanton branch has doubled its size since we opened in 2011,” she says. “There are plans to expand the front office and build a new warehouse to house our frac equipment in the very near future. We now service over 30 oil and gas companies, providing wellhead and frac equipment in the Eagle Ford Shale as of today.” According to Carrell, Cactus’ roots in the oilfield reach back three generations to 1957.

Currently, CEO is Scott Bender of Houston, VP is Joel Bender of Houston and CFO is Brian Small of Houston. In the Pleasanton office, branch manager is Chad Allo, operations manager is Adan Campos, shop foreman is Randy McMullin and field sales supervisor is Larry Gollnick. Service managers are Noe Villareal, Chris Sullivan and Raymond Tosh. The admin staff includes Carrell, Amanda Bures, Suzanne Schendel and Laura Ryan in human resources. And, according to Carrell, they are hoping to expand that work force with some experienced field service technicians. “Anyone who is qualified is welcome to come into the office and apply.” –cw Cactus Wellhead LLC is a manufacturer of pressure control equipment used during drilling, completion and production operations on land and offshore.

Some of IOC’s 120 employees take a short break to pose for a company photo.

OC Company LLC is a full-service civil contractor established in 2005 and is a family owned company located in South Texas. Since its establishment, the company has completed over 215 projects worth $130 million. IOC Company’s primary market is the highway and road industry, with a majority of the projects contracted through TxDOT. One of the company’s current projects is the U.S. 83 Inspiration Project located in Hidalgo County. IOC Company partnered up with J.D. Abrams to widen lanes as the subcontractor. The overall contract amount is approximately $30 million, with IOC’s part estimated at $12 million, according to Nancy Davenport. IOC Company’s reputation has been built on the owner’s core values of integrity, honesty and dedication. The owner’s previous experience and knowledge have equipped them to manage a suc-

cessful operation. IOC Company also has two sister companies: IOC Trucking and Terra Firma Materials. IOC Company’s focus is on the heavy civil construction side that includes utilities, earth moving and grading, concrete structures, paving and site work. IOC Trucking handles the materials and hauling aspect, while, Terra Firma Materials, LLC is a hot mix, sand and gravel operation quarry that handles crushing, recycling and screening. The staff between the three divisions consists of 120 fulltime employees. Safety is a major emphasis for IOC, Davenport says. “We have a companywide safety meeting every month,” she said. Additionally, daily “toolbox” meetings are held at every job site. According to Davenport, IOC Company considers their employees to be their most valuable asset. –cw

Construction News ON LOCATION

No roadblock

Alls ‘Wells’ in Pleasanton

Ralph Kurz, owner of Bloch Construction, and Janie Mondragon, administrative assistant, take a peek at the December issue of South Texas Construction News in Corpus Christi. –cw

Office manager Sandy Haiduk, center, keeps things running smoothly say Roger Wells, left and Jess Kemp, right.

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ells Construction in Pleasanton has been around long enough for the company to experience the ups and downs of the construction industry. Started by Ted Wells in 1979, the company is now owned by son, Roger Wells. “We’ve been steadily growing,” Roger says. That growth can be attributed to several key factors – most obvious among those is the growth associated with the Eagle Ford Shale, but also the fact that Pleasanton just isn’t that far from San Antonio. “Sometimes Pleasanton is perceived as being farther than it is from San Antonio,” he says. “We can be at the Alamodome in 30 minutes.” Being located halfway between the oilfields and San Antonio has helped not only the community as a whole and contractors, but sub-contractors, too.

“It’s been a direct benefit to the subs,” Roger said. The company handles about 60 percent commercial construction and 40 percent residential. “It ebbs and flows,” says project manager and estimator Jess Kemp. “Commercial is the bigger, volume wise.” There are roughly 10 fulltime employees, including Wells and Kemp, plus Clifton Herber, project manager and Sandy Haiduk, office manager. The employees get together regularly for after hours fun, including fish frys, barbecues and Christmas parties. Unlike some companies in the region that are finding it difficult to attract and retain employees, Roger says most of Wells employees are fairly long-term. “We try to be fair,” he says. “They have free reign to do what they do best.” Jess agreed, saying, “We try to have some fun. It’s not sterile or rigid.” –cw

South Texas Construction News • Jan 2015

Page 11

Construction Forecast The Lone Star State is a leader in job creation, among other things Anirban Basu, Chief Economist Associated Builders and Contractors Washington, D.C.

e are now in the sixth year of economic recovery and the U.S. economy finally looks like it is expanding with conviction. The winter of early-2014 was brutal, robbing the U.S. economy of the momentum it enjoyed during the final six months of 2013. But the nation’s economy rebounded nicely as the final snows melted, particularly in the form of expanding business investment. Construction projects that were delayed by the harsh winter are now underway, auto sales are surging, the nation supports 2.734 million more jobs than it did a year ago, and for the first time in six years, unemployment has fallen below 6 percent. The quality of jobs being added has improved of late as well, with more middle-income jobs being produced in construction, manufacturing, energy, professional services and IT. After shrinking during the first quarter, the U.S. economy bounced back with a robust 4.6 percent annualized performance during the second. Third quarter growth stood at 3.9 percent on an annualized basis and the year’s final quarter should be decent. The most recent International Monetary Fund upgraded its growth projection for the U.S. from 1.7 to 2.2 percent for 2014, particularly impressive given the fact the economy spent the first three months of the year shrinking. What does all of this mean? Associated Builders and Contractors believes that the U.S. economy is approaching the peak of its business cycle. We are now in a period in which the economy is gaining momentum while the Federal Reserve acts as if that’s not occurring, and therefore is expected to maintain low shortterm interest rates well into 2015. Keep in mind that many companies have managed to grow profits in recent years through aggressive cost-cutting measures. Even in the presence of a more active mergers and acquisitions market, that can only continue for so long. To

grow earnings, businesses will increasingly have to bulk up top-line revenues, which implies faster capital spending and inventory accumulation. For residents of the Lone Star State, however, the economic numbers were headed in the right direction long before the remainder of the country. Already a job creator while the rest of the U.S. was struggling to stop the economic bleeding, Texas was the economic outlier that quickly shrugged off the lingering effects of the 2008 financial crisis. Looking ahead – 2015 will be good for Texas So as the rest of the country finally gets back onto its economic feet, what’s in store for Texas? There are reasons to believe that the Lone Star State’s economy will face some new headwinds even as the U.S. economy settles into a period of relative progress. Consumers, who represent 70 percent of the nation’s economy, have become far more confident of late, in part because of falling oil and gas prices. Most of America benefits from cheaper fuel, but Texas is easily the nation’s largest oil producer, and the impact of falling oil and gas prices on the Texas economy remains unknown.

Presuming that oil production at least holds its own, Texas’ economy should be in for a terrific year in 2015. By October 2014, the state’s unemployment rate had declined to 5.1 percent, a 1.1 percent decline from the same period one year prior and 0.7 percent below the national average. Among the state’s 25 statistical areas, nine recorded unemployment rates of 4 percent or lower recently, with unemployment rates of 2.5 percent and 3 percent in Midland and Odessa, respectively. The state’s major metropolitan areas all posted unemployment rates below 5 percent as well (Houston, 4.7 percent; Dallas, 4.8 percent; Austin, 4 percent; and San Antonio, 4.5 percent). Over the past 12 months for which data are available, Houston has created 120,000 jobs (an increase of 4.3 percent), Dallas roughly 112,000 (3.6 percent), and Austin has added more than 29,000 (3.4 percent). Overall, the state added 436,700 jobs over a recent twelve-month period, a 3.9 percent increase from the year before and roughly double the national rate. Demand for industrial construction in Houston is surging as well. Total net absorption of industrial space totaled more than 2.6 million square feet during the third quarter of 2014 alone, with the industrial vacancy rate sliding to 5.4 percent. Over the first three quarters of 2014, net absorption exceeded 5.8 million square feet. The region presently has more than 6 million square feet of industrial space under construction. While energy production still drives a significant portion of Houston’s economic expansion, the city also acts as a transportation hub for its region, with more steel being shipped through the Port of Houston Authority in July 2014 than in any other month since 2008. With oil prices falling recently, it is conceivable that some of the edge will

be taken off the Texas economy over the near-term. A few months ago, several government and private reports indicated that it would take a further drop of $10 or $20 a barrel, to as low as $60 a barrel, to slow energy production even modestly. Oil presently sits below $60 per barrel, though that price could rise next year due to the onset of the driving season or other factors. While lower prices mean that taxes and royalties on oil production will decline, potentially impacting the finances of oil producing states like Texas, Alaska, Oklahoma and North Dakota, current levels of output are likely to be sustained in the shale fields of America in 2015. The U.S. Energy Department recently reported that only 4 percent of shale-derived oil production in North Dakota, Texas and other states required an oil price above $80 dollars a barrel for producers to break even on their investments. Therefore, the dip in oil prices should not affect the majority of production across the U.S., and in particular, Texas. Moreover, while low oil prices negatively impact some, they represent a boon for the majority. Texas’ drivers, whether commuters or truckers, stand to benefit next year as do consumers. Manufacturers are also a beneficiary of cheaper energy, which is important because Texas is home to the second largest number of manufacturing positions in America. Correspondingly, even if oil production slows more in Texas than is expected, there are other segments that are positioned to more than compensate for the associated loss in construction volume, including both manufacturing and commercial segments. Leading indicators also indicate that all of the state’s major metropolitan areas, including Austin, Dallas, Houston and San Antonio appear positioned for meaningful growth in nonresidential construction spending next year.

What shape will the frame take? Neilesh Verma, President Galaxy Builders

sharp decline in oil prices will impact our industry. We are all connected one way or another, so the impact to us will surely be felt.

San Antonio, TX

ith ongoing labor issues and economic factors up in the air, Neilesh Verma, president of Galaxy Builders, shared some thoughts on how the future might be framed as the industry builds up again, particularly regarding multifamily projects. What markets do you expect Galaxy Builders and the industry will see increase over the course of 2015? The multifamily industry will continue to remain strong in 2015. Individuals continue to be challenged with the process of getting approved for single-family home loans due to tightened credit requirements. People need to live somewhere and multi-family has become the biggest beneficiary of such. What do you foresee as the biggest challenges your company and others like it in the industry will face in 2015? And how does Galaxy plan to address or overcome this challenge? The availability of skilled labor continues to be the greatest challenge to our industry today. There is no short-term fix to this problem, as many in the labor

force left during the recession and have not returned. The solution is to make a dedicated effort to promote students in trade schools. Show them that they have a future in our industry, provided with opportunities through internships and scholarships. Another challenge is the continued rise in construction costs. At some point, these costs will no longer be feasible for the developments to make sense. When interest rates rise, and I suspect they will, we will truly be tested in how creative we can be to make the numbers work. Are there any potential wild cards, or variables, that you think might be a factor in the construction industry and economy in 2015? How could they affect the rebounding climate? It will be interesting to see how the

What do you think will be different for Galaxy and the industry in 2015 from 2014? That is what is exciting about this business. There is always something new to work through on the horizon. The Affordable Healthcare Act, Immigration Reform, pressures from the Fed to raise interest rates and the upcoming 2016 presidential election are some of the issues that we will have to watch closely as we position ourselves into 2015 and beyond. What are Galaxy’s plans for 2015? How does the outlook for 2015 seem as compared with 2014? The outlook for 2015 is bullish, with anticipated growth in revenues from 2014 to 2015. We have a pipeline of projects that are strong, supported with a backlog that is healthier than we have seen in the last few years. We have work statewide, all of which is in multifamily. How would you sum up the last five years for business at Galaxy, and what would you predict for the next five years? In the last five years, we have seen

how important it is to operate your business conservatively by thinking with your head and not your heart. We braced ourselves for impact when opportunities were not as readily available as they are today. I consider us one of the fortunate ones to stand the test of time. We are certainly on an upward trend; however, I believe you are always in the first year of a five-year plan. Only time will tell and market conditions will dictate how the next five years are. For now, we have to be willing not to bite off more than we can chew. What is the most important takeaway you’ve learned in this past year? Great question! This has arguably been the busiest year many of us have had to be a part of. With that, I will defer to answer this until the end of the year when I take appropriate time to reflect on what went right, what went wrong, and how we can be better in 2015. Established in San Antonio in 1991 by Arun Verma, Galaxy Builders specializes in multifamily, institutional and governmental projects. Arun’s son, Neilesh, started in the company in 2005 as director of business development and marketing and took on his current role as president in 2012. –mh

Page 12

South Texas Construction News • Jan 2015

‘Bizzy’ by the bay

A Valley Christmas

MC Construction Services heralded the holiday season with food, fun and friends at the CMC yard in Harlingen. As part of the season’s cheer, the revelers were entertained by carolers and exchanged gifts. –cw

The Bizzy Air crew took care of the air-conditioning needs for a recent project.

cott Flory, owner of Bizzy Air in Corpus Christi, is not afraid to lend a helping hand to his competitors in the field. “I possess a lot of knowledge on high-efficiency equipment you don’t see every day,” he says. “When other AC contractors in town ask me for help or to help train their guys, I’m happy to do it. It makes all of us look better when things are done right.” Flory has been in the AC industry since 1999, and opened Bizzy in 2009. At five years, he’s happy that he made the decision. “I’m an ambitious person,” he says. “It’s been a goal from the beginning (to own his own business).” Currently, he has six employees and says his business is about 60 percent residential and 40 percent commercial. Flory recently helped South Texas Building Partners by doing the AC work on the old Hygeia Dairy Plant, which

STBP renovated into an auto paint and body shop. “It was nice to take an old building like that and bring it back to life,” he says. Although Flory grew up in Ft. Worth, he got tired of the traffic and madness of the area. What brought him to Corpus? Fishing, of course! “Me and a bunch of friends used to come down here and fish,” he said. “I decided it was time for a change and I wanted to get on the water and try to play a little.” He’s currently single – and available - he says with a laugh. Flory prides his business on taking time to figure out what exactly a client needs. He doesn’t try to push big ticket items just for the profit. “When I sit down and design a system, a lot of thought goes into it,” he says. “Most of our work comes from word of mouth, which indicates we are doing something right.” – cw

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South Texas Construction News • Jan 2015

Page 13

Association Calendar

Growing the workforce

Content submitted by Associations to Construction News ABC- Mid Coast

ASCE

Associated Builders & Contractors

American Society of Civil Engineers

Jan. 22: Annual awards and officer installation at Victoria Country Club, 6:30pm

Jan. 6: Joint engineering societies meeting from 5-7:30pm. ASCE, TSPE, AIChE, PMI, SAME and WEAT/TAWWA at Holiday Inn Marina. Topic: Engineering Excellence and the Industrial Exception by Daniel Wong, PE, president TBPE.

AGC- South Texas Associated General Contractors

Jan. 23: A Starry Night – Annual Construction Stars of the Year awards, installation of 2015 officers banquet and gala at Corpus Christi Science & History Museum. 6pm, social hour; 7pm dinner and program. $85 per person. RSVP to Debbie Schibi at 361-289-0996 or dschibi@ southtexasagc.org

AGC-Rio Grande Valley Associated General Contractors

Jan. 3, 10, 17 and 24: OSHA 3-hour Construction Outreach Training at AGC headquarters. Max class size is 20. $375 for members, $395 non-members. 956-4234091

Submissions

Round-Up

Scholarship recipients were Rene Rodriguez and Javier Dominguez. Both are currently enrolled in the TSTBCST program. –cw

AGC executive director Perry Vaughn and scholarship recipient Javier Dominguez

AGC executive director Perry Vaughn and scholarship recipient Rene Rodriguez

NAWIC - Corpus Christi Nat’l Assn. of Women in Construction

Jan. 20: NAWIC CC Dinner Business Meeting, public welcome, the BBQ Man Restaurant, 5:30pm networking, 6pm meeting. $20.00 Contact Vickie Thompson 361-299-6278 or 361-438-0593, to get more information or check out nawic.org or nawiccorpuschristi.org Jan. 31: NAWIC CC Block Kids Contest at Jones Elementary School 9am.

Round-Up Dale B. Martin, PE, has joined Raba Kistner Infrastructure as Materials Engineer III for the Energy Sector Roadway Repair project, including roadways in Corpus Christi, Yoakum, Laredo and San Antonio districts. He earned his bachelor’s degree in civil engineering from Texas A&M University in 1983 and is a registered professional engineer in Texas.

he Rio Grande Valley Chapter Associated General Contractors (AGC) recently announced the recipients of two AGC scholarships awarded to the Texas State Technical College Building Construction Science Technology Department.

Skanska USA announced today that Steve Lyons has joined the company as director of business development for its Central and South Texas operations. Lyons has worked in the industry for the past eight years. Lyons joins Skanska from SimplexGrinnell. In his new role, he will work closely with Skanska’s operations teams to support the needs of current and potential clients. Lyons is involved in many industry organizations including the Society for Marketing Professional Services and the Society of American Military Engineers. He is a graduate of the University of Texas at Austin.

This is a monthly section for brief company announcements of new or recently promoted personnel, free of charge, as space allows. –––––––––––––––––––––––––––––––––––––––––––– Email (w/digital photo, if available) by the 15th of any month, for the next month’s issue (published 1st of each month). Email info to appropriate city issue, with “Round-Up” in the subject line: –––––––––––––––––––––––––––––––––––––––––––––––––––––––– San Antonio: saeditor@constructionnews.net Austin: austineditor@constructionnews.net Dallas/Ft. Worth: dfweditor@constructionnews.net Houston: houstoneditor@constructionnews.net South Texas: STeditor@constructionnews.net

Construction News ON LOCATION

It’s a gas

Doug Parfrey and Kimberly Melvin make sure customers get the right gas, welding and safety products at Airgas in Corpus Christi. –cw

Page 14

South Texas Construction News • Jan 2015

The ‘Zebby’ best

he American Institute of Architects Lower Rio Grande Valley Chapter (AIA) held their annual Zebby Awards Dec. 6 at Villa de Cortez in Weslaco. The 2014 Zebby Awards were dedicated to Zeb William Rike, a University of Texas B.Arch. 1936 graduate and founding member of the LRGV-AIA, for his devotion and service to South Texas and the LRGV-AIA architecture community. Rike worked in the community for more than 40 years, while completing over 600 architectural projects both at home and abroad. The award is given to a team and/or individual that has shown a leadership role locally that has exemplified service to the profession. –cw Congrats to the winners! Citations of Honor Viviana Frank, AIA, for her vision for the preservation and investment in a diverse, inclusive, vibrant and cultural downtown Laredo and its unique neighborhoods. Professor Murad Abusalim Ph.D. for his work with Texas Southmost College Architecture Students to design and build community gardens in the Lower Rio Grande Valley.

Perry Vaughn and Rey Sanchez

Allen Williams for his collaboration with design teams to protect wildlife at new construction sites, allowing the undisturbed areas to serve as outdoor classrooms and establishing new gardens utilizing native plants with the help of students. Rey Sanchez for his work with STC Students to assist indigent citizens to restore their homes collaborating resources with Habitat RGV, South Texas College - Construction Supervision Students and South Texas College CAD Students. Perry Vaughn, Hon. LRGV-AIA, in recognition of visionary leadership and long standing collaboration with LRGVAIA to promote quality design and construction in the Lower Río Grande Valley.

Texas locations. The company prides itself on being a one-stop shop for all construction site needs (from toilet paper to concrete accessories and of course, tools). “One call gets it all,” Johnson quips. “We will be there from day one until the job is done.” Free delivery and quick response are also pluses, Johnson says. Currently, there are nine full-time employees at the Corpus office who recently enjoyed a barbecue lunch at work and planned a Christmas party.

According to Johnson, the company splits its time pretty evenly between industrial and commercial customers. With his 23 years in the business, having lived in the area his whole life and making important contacts, Johnson says he can be a resource. “I do whatever it takes to make it easy for them,” he says of the company’s business philosophy. Johnson is married to Valerie and they have a daughter, Miranda, 17. –cw

continued from Page 1 — What’s old is new have spent today building the same space. “Wind is not going to blow these walls down,” Webster added, referencing the coastal tendency for hurricanes. Both Ezell and Webster worked for another construction company in Corpus Christi. Ezell started STBP in December 2011. “It was time to be able to take responsibility and authority for my work,” he says. Webster had decided to start a company back up he owned previously that focused mainly on residential. “I talked to Matt and it went from there,” he says. Now, STBP does about 92-93 percent

commercial construction, although Ezell and Webster say they would consider doing high-end, custom residential. “It’s not our focus, but we’ll look at it,” Ezell says. In two years, STBP has contracted 88 projects and are proud to say that every job has resulted in a happy customer. “Word of mouth is important,” Ezell says. “If we make everybody happy, they’ll spread the word.” Both men feel lucky to have landed in Corpus Christi and South Texas (Ezell is from Lake Jackson and Webster is from Sulpher Springs). “We have a great team here,” Ezell says. “Everybody at STBP is part of the team. It’s a family atmosphere.” –cw

continued from Page 1 —‘Pharr’ and away the best

Champs

within a few minutes of the jobsite. They were available to discuss and resolve any issues concerning the job site. “Everyone was involved and informed throughout the entire duration of the construction which allowed for the project to go without a hitch,” Wilson says. “Good communication was instrumental when it came to coordinating with the subcontractors, owner, architect and engineers.” Wilson says the team player attitude, with everybody collaborating closely, ensured that the owner’s goals for the project were achieved or exceeded. “We work well with architectural

Brittany Hill

Veronica Heysquierdo

afety Council of the Texas Mid-Coast (SCTMC) named Brittany Hill 2014 Team Member of the Year at the 2014 Employee Holiday Banquet. Hill joined SCTMC as a part time staff specialist in January 2014 and moved to full time during the summer of 2014. Hill is the trainer for all personnel working in the Computer Based Learning Lab and is cross-trained to work in customer service.

Named as Leader of the Year was Veronica Heysquierdo who came to SCTMC in April 2012 as a part time staff specialist. Heysquierdo joined the leadership team as customer service supervisor in January 2014. Heysquierdo exceeds in efficient training of personnel, delegating authority and tasks, managing logistical challenges and always being willing to assist on any project in the corporation.–cw

continued from Page 1 — Upgrading to RAM

Specializing in Industrial Scrap Metal & Container Service

firms both large and small, local, regional or national. When called upon to provide input for building systems, solutions to problems or complex issues, our experienced staff can call upon its own expertise or a network of subcontractors and suppliers,” he says. The architect on the project was Robert “Bob” Simpson from Boultinghouse Simpson Gates. Melden & Hunt was the civil engineer, Halff & Associates was the MEP engineer and Lopez Engineering was the structural engineer. Project manager was Ramon Dones and superintendent was Jose Carlos “Charlie” Garcia. – cw

The expansive, two-story building shows how well the team worked together on the project.

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South Texas Construction News • Jan 2015

Page 15

Celebrate the season

On the waterfront

KMC Architects hosted the American Institute of Architects Corpus Christi (AIA) holiday party on Dec. 2 at the WKMC office. All enjoyed plenty of good food and fellowship. –cw

Michael Goodman and Brandon Davis (Architectural Division 8 - Christmas Party dinner sponsor) with Ira Freeman

Bill McCord, president/CEO, WKMC; and Foster Schempf (Acme Brick - Christmas Party premier sponsor), with Frank Trimble and Jennifer Hilliard (back to camera), both with WKMC

Elizabeth Chu Richter, AIA National president and David Richter, Richter Architects

Connie Rivera, WKMC (2014 AIA-CC president and 2015 TxA director) and Jacqueline Carlson, 2015 president

20 Construction was formed in 2001 when owner Chris Hamby and another partner opened the doors. The name was taken from Hamby’s license plate and when he decided to start his company in Harlingen, the name seemed to fit the South Texas “vibe.” The partner dropped out in 2007, but Hamby, who is from Harlingen, has kept the business going. He graduated from UTSA with a degree in civil engineering and went to work for Waste Management, Inc. When that company merged with USA Waste, Hamby was laid off about a year later as were 5 out of every 6 engineers. He took a job with a construction company in December 1999 and after a couple of years, went out on his own. H20 does everything from residential, commercial to seawalls, Hamby says, and subs everything out. “I have a couple of friends I rely on he explains. “We split the job on a percent-

Industry FOLKS

What is your New Year’s resolution?

Joshua Fosmire Customer & Public Relations Monterrey Iron & Metal

oshua Fosmire recently came onboard at Monterrey Iron & Metal to do customer and public relations for the 98-year-old scrap metal recycling company. A native of upstate New York – that’s anything north of the New York City metropolitan area – Fosmire grew up near Binghamton, attending Vestal High School, and when he graduated in 1999, he went on to Tompkins Cortland Community College in Dryden. He’s currently finishing his degree in public relations with Southern New Hampshire University (SNHU). In 2002, he came to San Antonio for a change of scenery and started working at Schnabel’s True Value hardware store. Like Monterrey, Schnabel’s is another longstanding San Antonio business with Fosmire estimating it to be 74 years old this year. He was store manager for 11 of those years. When the opportunity arose to work at Monterrey, doing exactly what he loves, Fosmire seized it. He says that every day at Monterrey is different and that he enjoys working for owner Jack Vexler and the family-owned private company. Another thing he loves about his job is meeting new people and building client relationships. In his role at Monterrey, he also works with the San Antonio Manufacturing Association. Outside of work, Fosmire keeps busy finishing his degree and of course, spending time with his wife, who is a librarian for Katherine Stinson Middle School. The couple was married Jun.

age basis. They run the in-the-field part. After the job is over, we split it out. It’s an incentive to have the job go well and move it to completion.” Other jobs H20 has done include the Veterans Memorial Park in Laguna Vista for $1 million by South Padre Island and H20 owns two subdivisions. Hamby says his projects range from $500 to $5 million. “I’ve stayed booked up since 2008,” he says. “It’s non-stop.” He is married to Stephanie, who he met in college and they have two kids, MacKenzie and Logan. “We typically do a cruise once a year,” he said. When it comes to customers, Hamby’s philosophy is simple. “Treat people the same way I would like to be treated,” he says. He is currently treasurer on the Associated General Contractors Rio Grande Valley Chapter board (AGC) and president of Harlingen lions club –cw

15 of last year. He met his wife through Flexible Fitness, a personal training studio that Fosmire owned and operated from 2011 to 2014. Since getting married, Fosmire and his wife have been talking about starting a family. Between his work schedule running both the hardware store and the gym, he decided to close the gym. Fosmire comments that this was “not shutting the doors to the opportunity of opening another one sometime down the road, but for right now this is where I needed to go.” He believes closing the gym happened at the perfect time, because the position at Monterrey presented itself and made for an ideal transition. Having appeared in a fitness magazine in 2001, fitness continues to be a passion of his with its roots traceable to family. “My dad introduced me to fitness when I was 15, and it was just something I fell in love with,” he recalls. “I’m still a personal trainer, too. That’s something I’m always keeping active. It’s something I love. I get to vent when I’m working out. I feel like it’s something [that can] clear my head. I get my best ideas at the gym.” An only child, Fosmire remains close to his father, who lives in New Hampshire, and he recently traveled back to the northeast to visit him. –mh

Yes, I do have a New Year’s resolution – it is to start parking at the end of parking lots instead of looking for the closest parking spot. I hope this will help me reach my other New Year’s resolution of losing weight and over all improving my health in 2015. I make resolutions every year. I feel this is a fresh start and everyone should have goals they are working towards. Peggy Frederick, Testengeer

Keep learning new things in business and in life. Connor Friedrichs, REFCO

This year I decided not to make a resolution I will never keep. Like exercising… not going to happen. Give up sweets… wouldn’t make it a week. Diet Coke…not a chance. This year I am in pursuit of one that I am willing to achieve. One that I will continue to pursue year after year. I resolve to make time for family and friends. This past year I missed too many opportunities to relax with family and friends. The opportunities to love those close to me will set my priorities for the year. So I will keep my diet coke and ridiculous sugar addition, but I will definitely share them with a friend. Debbie Schibi, AGC CC

I have the same resolution every year and I try to live it every day: Live each day to its fullest and let the people you love know it. Randall Redding, RKR Construction

Work less, make more money and play more, because life is too short! Irene Haeber, Haeber Roofing Start running again to get in better shape. Justin, Haeber Roofing

Just to enjoy life day by day and be thankful for the days that our Lord has given us. I don't really focus on New Year's resolutions, just focus on life day to day and being the best mom that I can be for my son. Patricia Livas, NAWIC CC

I will actually laugh out loud when I type “LOL” to the person I am messaging with. Sarah Rivas, CHL Inc 1. Spend less 2. Earn more 3. Stop watching real housewives of wherever Lydia Zamorra, CC Construction Never stop believing, never give up and aim for the stars. DJ Salazar, Granite Stop whining and do something about it! Cyndi Wright, editor, ST Construction News

Page 16

South Texas Construction News • Jan 2015

South Texas sweaters

pawGlass South Texas greeted the holiday season on Friday, Dec. 5 at the Penthouse at the Reese in Harlingen. An “Ugly Sweater” showing was the theme of the evening filled with fun, good food and good friends. Good-natured contests and skits from movie scenes kept the party rolling. –cw

Chris Pennington and Hermilo Morales

Eric Delgado with his door prize of a Superman Snuggie

L-R: Joel Stone, Chris Pennington, Jennifer Faircloth, Duane Guzman, Brenda Guzman

Lisa and Hermilo Morales

Alfredo and Sabina Garcia

Alamo Crane is equipped to handle any petroleum related work in the Eagle Ford Shale.

“Ugly” sweaters abounded at the annual holiday party.

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Happy holidays!

Another successful day in the Eagle Ford. Give us a call so we can help you be successful. L-R: Monie Young, Lisa Barrera and Melinda Solis are an attractive addition to the festive Christmas tree at Camacho Demolition in Corpus Christi. –cw

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From El Paso to Beaumont, Amarillo to Brownsville

Reaching heights

35 Years of Service to Texas

www.alamocrane.com San Antonio (210) 344-7370 Austin (512) 282-6866 Toll Free (800) 880-0134

Carpenters Joe Hernandez and Ismael Martinez are working on a new apartment building, Kennedy Heights Apartments, in Kennedy. The owner is Jim Lane and the GC is Galaxy Builders Ltd. of San Antonio. –cw