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The Industry’s Newspaper July 4, 2015
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Volume 15
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Number 7
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JULY 2015
Arriving in Austin
Marking a milestone
L-R: Alix Pillman, Andrew Gonzales, Bill Brooks, Donnie Brooks, Allen Pierce, Juli Soric, Ron Padula
Gorrondona & Associates Austin branch employees
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hile concentrating on growth and diversification in San Antonio, Alterman Inc. has taken its first step toward its long-term plan to grow geographically as well. Earlier this year, the electrical contractor established a presence in Austin. Alterman officially acquired Hill Electric Jan. 29. John Wright, president and CEO of Alterman, notes that the transition is going very well as they are picking up jobs as Alterman and helping to finish jobs that Hill had ongoing at the time of the acquisition, most of which will be finished by the end of the summer. Jack Hill founded Hill Electric in the 1960s. When he passed away a few years ago, Dana Hill, his daughter, and Bill
Brooks, who helped run the company for more than 35 years, became the owners. Now, Hill’s daughter is helping with the transition, and Brooks will remain with Alterman as the director of operations in Austin. Seven office employees and approximately 35 people in the field have remained with the company to become Alterman’s Austin team. To aid in the transition, the project managers in Austin are being mentored by two of Alterman’s most senior project managers in San Antonio. One San Antonio employee has relocated to the Austin office to help with the transition to Alterman’s business policies and practices and to help implement continued on Page 17
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orrondona & Associates Inc. (G&AI) celebrated 25 years as a company and the 10th anniversary of opening its Austin branch office at a crawfish boil Jun. 12. The company held the event to show appreciation to clients for their contribution to its success serving the Austin and Central Texas community. During the afternoon, employees, clients and friends enjoyed crawfish, sausage Jambalaya, chicken and cold beverages. The original founder and current president and CEO is Brad Gorrondona, RPLS. Gorrondona is responsible for the overall management and quality control efforts for the firm.
“Our mission remains the same today as it did in the beginning,” Gorrondona said. “As we have grown over the years, we have sought to put systems in place that facilitate our ability to still serve our clients as though we remain that same 20-person firm.” Over the past ten years, employees have stayed active in the Austin community. Gorrondona started a local scholarship of $10K for the Heart of Texas (HOT) Chapter of WTS. The chapter was able to create four new scholarships in the amount of $2,500 each for area high school students. continued on Page 17
Ready to ride
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eville Custom Homes (dba Deville Construction) has completed the Jack and Adams Bicycle Shop (Bicycle World) project in Austin. The owner is Jack Murray. Dean Deville, Deville Custom Homes/Deville Construction, was the project manager and project superintendent. The architect was Forsite Studio in conjunction with 3 Dots Design. According to Deville, the tenant improvement build out was in a new mixed used building located on South Lamar near downtown. “This is a bike shop that has continued to expand and needed a larger space,” Deville said. “The unit was 5600sf of empty space before the interior space was created.” The construction materials used for the project included metal studs, sheetrock, drop ceiling, reclaimed wood and
black steel. “We added a few intricate details such as a black steel wheel to hold the bike wheels, as well as a very large barn door from a 100-year-old building,” he said. “We also built a juice bar inside of the bike shop.” A major challenge presented in this job was building inside of a residential building where tenants were living and sleeping overhead. “We had to be conscientious of the tenants and change our hours of operation to later in the morning so that we wouldn’t wake up the tenants above,” Deville said. Deville Custom Homes/Deville Construction has completed home building and commercial building projects in Texas and Alaska. Deville Custom Homes/Deville Construction puts the finishing touches on the Jack and Adams Bicycle Shop (Bicycle World) project.
continued on Page 17
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Austin Construction News • Jul 2015
Chill and grill
Submitted to Construction News
Officer of this dealer’s ship
Having served as an executive vice president of RDO Equipment Co. since 2012, Chris Cooper was recently named COO of the company. Based at RDO’s Field Support Office in Fargo, ND, he will be responsible for daily operations across all regions and teams. He joined RDO in 2004 as general manager of the Irving, Fort Worth and Waco locations, becoming vice president of the Texas region in 2007 and vice president of southern construction in 2010. –mh
15 to 500 Ton Capacities
Salesman Shane Schmidt, FBS, (right) and guests
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he Factory Builder Stores (FBS) Austin location held a barbecue event for employees and customers Jun. 12. Austin Division President Paul Marshall grilled hot dogs and hamburgers on a Big Green Egg grill during the after-
noon. Attendees had the opportunity to mingle with friends in the construction industry. Established in 1988, Factory Builder Stores provides cabinetry and appliances to builders, remodelers and contractors. –ab
Designer C.J. Smith, FBS, (left) talks with a customer.
Paul Marshall, FBS, (left) grills hamburgers and hot dogs.
Available for your Toughest Projects
Sitting tower crane at UT Austin. Once again starting from the ground up for higher education
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CONSTRUCTION NEWS Austin Editor . . . . . . . . . . . . . . . . Abby BeMent AustinEditor@ConstructionNews.net 832-595-0091
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Austin Construction News • Jul 2015
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Calling all subs
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New in the ‘Mix’
The Blue Book Building & Construction Network
he Embassy Suites San Marcos Hotel Spa and Conference Center was a can’t miss destination for Austin and San Antonio subcontractors in late May, when The Blue Book Building & Construction Network held its annual GC Showcase. General contractors from all over Texas set up booths to make contact with
area subcontractors to help out with upcoming jobs. The Blue Book Building and Construction Network is a network in the commercial construction industry, with a member base comprised of general contractors, subcontractors, suppliers, architects, engineers and utilities professionals. –ab
Subcontractors network with general contractors at the GC showcase.
Milestone General Contracting
TACCA comes back
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he Lone Star State’s Air Conditioning Contractors Association (ACCA) is now an independent entity again. ACCA Texas reclaimed its previous name, Texas Air Conditioning Contractors Association (TACCA) as of Apr. 1. Well known as TACCA since its founding in 1969, the state entity changed its name to ACCA Texas in 2000 when ACCA National brought chapters into affiliation under a federated structure from the top down starting with the national office, according to Todd McAllister, TACCA executive director. Since the chapters were affiliated at the national, state and local level, members were required to pay dues to all three entities. Earlier this year, ACCA made the decision at the national level to forego federation. Now, TACCA is separate from ACCA, and though McAllister says they still encourage members to join ACCA on the national level also, national membership is no longer required. Members will only have to pay dues to their local chapter and the overseeing state entity, TACCA. Though the name and logo have changed, McAllister and David Mathews, TACCA president, assure members that the local and state levels will continue with business as usual, offering the same services and hosting the same events as always. The 10 chapters that comprised ACCA Texas also remain the same under TACCA. Those chapters include Abilene, Austin, Coastal Bend, Greater Houston, High Plains, North Texas, Rio Grande Valley, Greater San Antonio, South Plains and Waco. In the 15 years under the name ACCA Texas and McAllister’s tenure as the state association’s executive director, he explains that the disaffiliation from national came about because everything about association business models and the way
David Mathews, president of TACCA
a nonprofit trade organization operates has changed. Mathews adds that national did the billing for all the state and local chapters, which was approximated to require about 400 different billing structures for dues across the country. The change will allow the TACCA board of directors to run the organization with autonomy. The only difference was that they had to adjust the dues structures for the local and state levels. The new organizational structure will benefit smaller contractors in the HVAC industry, as Mathews recalls that several small contractors could not afford to pay dues to all three levels of the association and subsequently left ACCA. McAllister observes that since returning to the familiar TACCA name, they’ve seen several small contractors come back. Mathews notes, “I think it’s a positive adjustment for contractors throughout the state, and I think it’s going to be a really good thing for us.” –mh
Victor Rodriguez works out of Tex-Mix’s new plant on I-10 as the salesman for the San Antonio region.
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ith six plants in the Central Texas region, Tex-Mix Concrete opened its first San Antonio facility in March. The new ready-mix plant on I-10 will expand the company’s service area to southern Comal County, Eastern Bexar County and Guadalupe County. The new location on the northeast side of the city includes a 10-acre plant and some small offices, all of which were built from the ground up. After completing the facility, Tex-Mix has more than 80 acres of extra land to be developed or sold. With a total fleet of more than 90 mixers, 10 mixer trucks are now at the new plant, and by the end of the summer, Logan Owens, CEO, hopes to have 14 employees at the facility. Meanwhile, management and key personnel are already in place. With Tex-Mix for nine years, Marvin Van Nostrand is currently running the plant as the area manager. With the com-
pany more than 10 years, Sam Martinez is the plant manager at the facility fulltime. With the company for three years, Victor Rodriguez is in charge of sales for the San Antonio region. “We’re really excited about the reception that we’ve received so far,” comments Owens, whose family owns the company. “Our customer base has a large presence in the market, and we’re entering the market to service those existing customers.” Owens adds that the industrial market is expanding in San Antonio and the company has been looking to expand to the Alamo City for years. Tex-Mix was started in 1996. With the San Antonio plant open and producing concrete for its clients in concrete contracting, general contracting and homebuilding, the company’s other locations include the Hutto, Georgetown, Leander, Old Manor, South Austin and San Marcos plants. –mh
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Austin Construction News • Jul 2015
James Johnson Owner J. Johnson Contracting
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fter gaining experience working on commercial jobs for a local general contractor, James Johnson felt it was time to open his own company and he went for it. “I have been blessed and fortunate the company has grown so quickly,” Johnson said. “When I started out, I had no investors, no loans and for me to be where I am at today is amazing. There are so many opportunities in the Austin area.” J. Johnson Contracting provides residential and commercial construction management, remodeling, upgrades, add-ons, concrete, demolition, framing and trim services in Austin and the surrounding areas. Where were you born and raised, James? I was born in South Dallas and I grew up in Rockwall, which is just east of Dallas. Rockwall County is the smallest county in the state of Texas. What was it like growing up in Rockwall? Football was really big in Rockwall since there was only one high school in the county. I played the wide receiver position on the varsity football team. Where did you graduate high school? I attended and graduated from Rockwall High School. Describe one of your very first jobs. I owned a lawn and landscape company when I was 13. I pushed a lawnmower around my neighborhood. I rang lots of doorbells to drum up business. I also worked at fast food restaurants when I was a teenager. Do you have any brothers and sisters? Yes, I have an older sister and a younger brother.
What did your father do for a living? My dad was a jack-of-all-trades. He worked for Proctor and Gamble when I was growing up. What did you do after you graduated high school? I moved to Austin after I graduated high school. I attended Austin Community College for a short time. I began looking for work and did odd jobs such as mowing grass and changing oil. I soon began working at a general contracting company in Austin as a helper. I helped out wherever I was needed. I eventually worked my way up at the company to superintendent and learned the commercial side of construction. From there, I moved on to another general contracting company. I was a project manager for about five and a half years. What were the early days like at your company? I needed to make ends meet so I did a variety of construction work in the beginning. I have had repeat business and that is always a good thing. We are currently handling Austin Independent School District and commercial projects. How have things progressed at the company? I have five people working with me these days. I had to hire more employees because we have grown so fast. They are a good group of guys and I enjoy working with them. Why do you enjoy what you do today? I can drive around Austin and surrounding counties years from now and see the buildings I helped build. It is all tangible. It is rewarding that people can enjoy the buildings when we are done working. I think I enjoy that part about the job the most. What advice would you give a person who wants to own his or her own construction company one day? I’d say start at the bottom and work your way up. Some people can learn just by reading a book. I am not one of those guys. I have learned faster over the years by making mistakes or seeing someone else make mistakes. When you fall down and skin your knees, you remember the pain so you walk a little more careful the next time.
James Johnson began working in the construction industry soon after he moved to Austin.
Did you have any mentors along the way? The owner’s son at the first general contracting company I worked for taught me quite a bit about commercial construction. We were about the same age and became friends. What are the keys to success? You have to work hard every day. Give it your all. Make sure to hire good people. Do everything you say you are going to do. Put in the time and be humble. What are a few of your favorite hobbies when you have free time? I spend my free time with my wife and our two boys. They keep us busy on the weekends. My wife’s name is Audrey. We met dancing at Dance Across Texas in Austin. We have enjoyed two stepping and country line dancing since we first met each other. I am a gun enthusiast, so I like to spend time at the shooting range when I get the chance. I don’t do any competitive shooting. I haven’t gone deer hunting in years. What kind of country music do you like to listen to nowadays? Anyone who knows me knows I love all kinds of country music. Audrey and I have attended lots of concerts over the years. We have seen lots of local country musicians play, too. Do you and Audrey go dancing still? We have a small window to go dancing since we are raising kids, but we like to go when we can! Tell us about your kids. Audrey and I have a 3-year-old named Easton and a 9-month-old named Rowan. I enjoy taking my sons to look at the buildings around town once we are all finished with the jobs.
Johnson’s son Easton is the life of the party.
My wife is into photography so she will come with us and take pictures. Do you enjoy raising two boys? I love raising my sons. There is no handbook to parenting. You have to be dedicated and devoted. I want my children to be better than me. Have you and your family traveled lately? My family and I will travel to Orlando, FL for a summer vacation. We will all go to Disney World. I don’t travel outside of Texas much so I am looking forward to going on vacation soon! What are your future plans? We are going to keep going the way we are now. I never thought I’d have the opportunities I have today. I’d like to stay humble and keep doing a good job. I take pride in what we do. –ab
Leading ladies
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he 2015-16 board of directors for the National Association of Women in Construction Austin Chapter 7 (NAWIC) were announced at Big Daddy’s Burgers Jun. 12. –ab President: Chaundra Callaway, Equipment Depot Vice President: Toni Osberry, Austin Chapter AGC Treasurer: Aimee Busby, Waste Management of Texas Secretary: Jamie Garrett, San Marcos Air Conditioning Directors: Pilar Avalos, Hensel Phelps; Gala Burns, efg&m Benefits; Sandra Johnson, Edge Electric; Amy Maresca, Edge Electric Immediate Past President: Cindy Richter, Vanguard Fire & Security
Austin Construction News • Jul 2015
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Leaders of the pack
Engineering a match
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L-R: Calvin T. Ladner; Patrick D. Veteto; and Robert C. Hickman
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JA Engineering Inc. (LJA), the largest employee-owned engineering firm in Houston, has acquired RVE Inc. (RVE), a long-standing engineering firm in Corpus Christi. RVE Inc. was founded in 1959 by William B. Ogletree and was primarily a structural engineering firm. Over the years, the firm changed ownership several times and from Russell-Veteto Engineering in 1989 evolved into RVE Inc. in 1999. “Although both companies have undergone name changes over the years, our simultaneous mission statements to provide comprehensive, quality engineering services fit smartly together,” says Calvin T. Ladner, PE and president of LJA. “The addition of RVE brings a 15-person firm with over 56 years of experience serving a diverse mix of clients, many of whom have been clients for decades. Pat Veteto, PE, RPLS, will continue to lead the Corpus Christi group as vice president of LJA. “RVE brings subsurface utility engineering, structural engineering, bridge
Submitted to Construction News
Solar power
Molly Young and Ron D’Argenio, SolarTex-Austin, took part in the recent Sun City vendor fair in Georgetown. SolarTex provides natural daylight with Solatube lighting systems and attic ventilation services to residential and commercial customers. –ab
condition assessments, windstorm design and inspections, and security systems services to the menu of LJA’s full service offerings, enhancing LJA’s engineering services, project management, and surveying services,” says Veteto. Robert C. Hickman, PE, senior vice president, Midstream Infrastructure Division, says, “Pat brings a strong background in public works, including specialized experience in structural condition assessments, dam safety investigations, and underwater bridge and major marine inspections. He is also involved in the design and management of homeland security improvements. Pat and RVE are well known and respected in the Corpus Christi area and we are proud to be affiliated with our new team members and have the opportunity to continue to serve the firm’s long term clients successfully.” Ladner said no changes were planned for the RVE staff except additional hiring to accommodate increasing project requirements. –cw
The TSPE officers
ngineers from all areas of Texas gathered at the Texas Society of Professional Engineers (TSPE) Conference & 79th annual meeting at the Omni Houston Hotel in Houston Jun. 17-19. Julia M. Harrod, PE, F.NSPE, garnered the TSPE Engineer of the Year award and Ardita Dushi, PE, APMP, won the TSPE Young Engineer of the Year award. In addition, Nancy Blackwell, PE, AEI Engineering Inc., was installed as TSPE's new president. Seminar topics during the event addressed the professional, economic, social and political aspects of engineering in Texas. Exhibitors at the conference included ADS Pipe, Hobas Pipe, Horizon Environmental Services, Inc., JPH Land Surveying Inc., Lime Association of Texas, Locke Solutions, SAM Inc., Texas Concrete Pipe Association and Texas Hydrant Services. –ab
Nancy Blackwell, PE, AEI Engineering Inc.
TSPE Engineer of the Year, Julia M. Harrod, PE, F.NSPE, receives her recognition from Harold “JR” Reddish, PE.
TSPE Young Engineer of the Year, Ardita Dushi, PE, APMP, (right) receives her award from Harold “JR” Reddish, PE.
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Austin Construction News • Jul 2015
Are your construction contracts choking project cash flow? Michael Kuchar, CPA Doeren Mayhew Houston, TX
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Workers compensation EMR changes Mark Gaskamp, CSP, CRM, CIC, CPCU, ALCM Wortham LLC Austin, TX
hen you think about what’s tying up your available dollars, a variety of culprits may come to mind. Perhaps you’re servicing a substantial amount of debt, waiting for past-due customer payments or dealing with elevated material costs. But one perpetrator of cash-flow crises that often goes overlooked is the piece of paper you sign in advance of every job — the contract.
ffective July 1, 2015, the world will change, at least in regards to workers compensation experience modifiers in the State of Texas. Last year, Texas began a transition to the National Council on Compensation Insurance (NCCI) for work comp rates and policy forms.
Construction contracts, or rather the language therein, can start choking your project cash flow before work even begins. So let’s look at some points to consider before signing on the next dotted line. Front-load, where possible Payment terms can also impact cash flow. A contract that calls for payment on completion of specified phases can create uncertainty, making project cashflow forecasting difficult. If a contract requires payment in equal installments over the course of a project, it provides predictability, but may not correspond to your expenditures on the job. Construction projects often involve significant upfront costs. If possible, negotiate a front-loaded billing schedule reflecting your greater cash needs in a project’s early stages. Also look at language regarding requisitions. It’s not unusual for a construction contract to disallow requisitions for materials until the materials have been installed. To avoid cash-flow disasters, try to negotiate requisition terms allowing you to request payment once materials have been delivered to the job site. Consider the method of payment, too. You might ask for accelerated methods, such as wire transfers or electronic checks. Review retainage A 5 percent or 10 percent retainage can easily defer your entire gross profit on a job until after construction is completed. To reduce the impact on your project cash flow, try to negotiate a lower percentage or ask for retainage to be phased out over the course of the project. For example, the construction contract might provide for 10 percent retainage, reduced to 5 percent when the job is 50 percent complete and eliminated when it’s 75 percent complete. Other options include limiting retainage to certain job costs, such as the labor component, or eliminating it altogether through the use of letters of credit, performance bonds or other security. Clarify your construction change orders As you know, construction change orders are inevitable in most construction
The immediate impact is that rates will change for most classifications, some by as much as 15%. This could have a positive or negative impact on your premium and experience modifier calculation. The other impact related to the experience modification rate (EMR). The workers compensation experience modifier (AKA EMR or eMod) is an insurance rating component designed to integrate the individual risk characteristics of each organization based on prior claim experience into the workers comp premium calculations. NCCI compiles claim data from insurance carriers by classification, providing a database for comparison and the ability to produce the EMR for each individual policyholder. There are several changes that will occur as part of the transition. Two will have significant impact for most every policyholder. First, there are major changes in how medical only claims are utilized in the calculation. NCCI’s experience rating rules allow for an experience rating adjustment of 70% for medical-only claims. This means that only 30% of a medical-only claim is used in the experience rating calculation. This change will make it less advantageous to pay claims out of pocket rather than report them to the insurance company. For example: If you have a $1,000 medical only bill for a cut or eye injury, only $300 would apply to the EMR. This will create an extra emphasis on reducing lost time claims. Once one penny is paid in indemnity payments, 100% of the claim will be included in the EMR calculation. Second, “spilt points” are changing. The “split point,” which is used to determine the “primary expected losses,” will increase from $5,000 to $15,500. For those that are not aware, there are actually two calculations used to produce the EMR. One utilizes total expected losses (capped at the maximum, which will be increasing to $230,500 per claim). This calculation uses the actual losses relative to the expected losses multiplied by a normalizing factor based on the size of the operation. The
jobs. It’s critical to establish clear terms and procedures for approving and paying them. If your contracts don’t have such terms, your payments may be delayed for additional work. Or, even worse, you might lose out on those payments altogether. Establish clear procedures for your personnel to identify changes in the scope of work and to promptly prepare and document change orders in accordance with contract terms. Moreover, before things get to the point of a construction change order, monitor work-in-process reports closely to ensure you can generate the proper paperwork should a change come up. Match outlays Remember cash flows in two directions, and outflow is as important as inflow. Scrutinize your contract terms with vendors, suppliers and subcontractors. You may be able to avoid cash-flow problems by negotiating payment terms that, to the extent possible, match your cash outlays with your receipts from the owner or general contractor. For example, include in your subcontracts retainage provisions that have terms similar to those in your contract with the owner. If you’re a subcontractor and your contract with the general contractor contains a “pay-whenpaid” or “pay-if-paid” clause, your contracts with subcontractors should contain parallel provisions. That way, you won’t be forced to pay subs until you collect from the general. Get to work Once a construction contract is signed and you get to work, there usually isn’t much you can do about the language or terms of the agreement. At that point, it’s critical to regularly prepare project cash-flow forecasts based on your workin-progress reports and make necessary adjustments during the course of the job. Michael Kuchar, CPA, is a shareholder and leader of Doeren Mayhew’s dedicated Construction Group in Houston. A top 100 U.S. firm, Doeren Mayhew’s CPAs and business advisors serve more than 500 suppliers and general and specialty contractors doing business domestically and abroad. For more information, visit www.doeren.com.
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smaller the organization, the more normalizing. This helps reduce the impact of one claim on a smaller organization’s EMR. The second calculation includes the actual “primary losses,” those that fall below the “split point” relative to the expected primary losses also capped at the “split point.” Note that there is no normalizing, this is dollar for a dollar ratio without taking into account the size of the organization. So, with the split point increasing from $5,000 to $15,500, if an organization has a higher than average number of claims above $5,000, their EMR will be adversely impacted. This could be a dramatic change. In all other states, NCCI phased this increase in over three years. Texas is doing it all at once. So over the next couple of years, you can expect some volatility in your EMR. It will be very important to work closely with insurance company underwriters to help ensure the overall rates and premiums are not adversely impacted by dramatic changes in the EMR. You may also want to revisit the current claim reporting process and determine if paying medical only claims remains a cost effective way to control the overall costs. Lastly, this affirms why the EMR is not an effective safety benchmark. Just because an EMR moves over 1.0 due to the new rating methodology does not make an employer “unsafe.” There are a multitude of reasons for a high experience modifier not related to a safe work place. Mark Gaskamp is a managing director for Wortham Insurance & Risk Management in Austin. He is a part of the Wortham Construction Industry Practice Group where his responsibilities include partnering with clients to manage safety and risk management exposures to reduce their cost of risk. He is actively involved in the ABC and AGC safety committees, and is a national faculty member of The National Alliance’s Certified Risk Manager’s (CRM) program. For more information, contact Mark at (512) 532-1536 or mark.gaskamp@ worthaminsurance.com or visit www. worthaminsurance.com
Submitted to Construction News
Down south
The American Institute of Architects (AIA) Convention 2015 brought thousands of architects and design professionals, including folks from Austin, to Atlanta in May. Former President Bill Clinton delivered the keynote address. –ab
Austin Construction News • Jul 2015
Page 7
Tree care safety
No damages for delay clauses: Do they mean what they say?
Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX
West W. Winter, Partner McNelis + Winter, PLLC San Antonio, TX
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re contract clauses enforceable in Texas to limit or negate the very substantial damages that may be incurred due to project delays which occur through no fault of your own?
In Zachry Construction Corp. v. Port of Houston Authority of Harris County, a significant construction law opinion which also discusses certain lien release and waiver of sovereign immunity issues, the Texas Supreme Court recently addressed the enforceability of nodamages-for-delay provisions. Zachry sued the Port of Houston Authority in 2006 claiming damages from delays allegedly caused by the Port when it switched course and ordered Zachry to complete the project “in the wet” and without the benefit of a previously utilized cutoff wall. The Port asserted that the no-damages-for-delay provision in the contract precluded Zachry’s delay damages. Pursuant to the contractual provision, the Port was not liable to Zachry “…for any damages arising out of or associated with any delay…to the Work, regardless of the source of the delay…and even if such delay…results from, arises out of or is due, in whole or in part, to the negligence, breach of contract or other fault of the Port Authority.” Zachry countered that this provision could not be enforced if the Port’s intentional misconduct caused the delay. After a three-month trial, the jury found, among other things, that the Port caused Zachry to incur more than $18 million in delay damages due to the Port’s “arbitrary and capricious conduct, active interference, bad faith, and/or fraud.” However, the court of appeals subsequently held that the no-damagesfor-delay provision barred Zachry’s recovery of delay damages. It then reversed the trial court’s judgment in favor of Zachry, and rendered judgment for the Port, awarding it $10 million in attorney’s fees. On appeal, the Texas Supreme Court recognized the general rule that a contractor may agree to assume the risk of construction delays and not seek damages. But, the Court also detailed four previously recognized exceptions to the enforcement of such agreements when the delay: (1) was not intended or contemplated by the parties to be within the purview of the provision; (2) resulted from fraud, misrepresentation, or other bad faith on the part of one seeking the benefit of the provision; (3) has extended for such an unreasonable length of time that the party delayed would have been
justified in abandoning the contract; or (4) is not within the specifically enumerated delays to which the clause applies. The Court further recognized a fifth exception “based upon active interference” with the contractor or other wrongful conduct including “arbitrary and capricious acts,” “without due consideration” and in disregard of the other parties’ rights. Zachry argued that the no-damages-for-delay provision was invalid and based upon the jury’s findings, relied upon these second and fifth exceptions. The Texas Supreme Court agreed with Zachry and held, among other things, that the no-damages-for-delay provision was unenforceable and that the award of attorney fees to the Port should be reversed. As part of its rationale, the Court reasoned that while contractors can assess potential delaying events when estimating and bidding, they cannot properly assess potential delays that may arise due to an owner’s direct interference, willful acts, negligence, bad faith fraudulent acts, and/or omissions. Another stated purpose behind these exceptions is to preclude a party from insulating itself from liability for its own deliberate and wrongful conduct. As exemplified by the Zachry holding, no-damages-for-delay clauses can be enforced, but there are numerous viable exceptions. Such clauses certainly cannot be used to insulate oneself from liability for deliberate and wrongful conduct or allow one party to intentionally injure another. Contractors who have suffered delay damages should closely scrutinize the specific facts and circumstances involved as early as possible so they may be fully informed about the impact of any applicable nodamages-for-delay clauses and whether any of these recognized exceptions may apply.
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efore beginning any tree care operation, employers need to: • Assess the work site for fall and falling object hazards. Assess the sloped ground where ladders or equipment will be used to prevent falls from equipment overturns and ladder slippage; nearby overhead objects or structures; and weather-related hazards. • Have a qualified arborist survey the worksite and identify the types of trees involved and possible hazards related to tree structure. The qualified arborist would identify fall hazards and falling object hazards due to tree condition. The American National Standard Institute’s (ANSI) Z133 consensus standard on tree care work defines “qualified arborist.” • Determine if rigging is necessary and, if so, that workers can use it safely. This determination helps prevent sections of the tree from falling while performing tree care work. • Determine if workers will need to climb or use aerial lifts. In making this determination, ensure that: Ladders are: - Well maintained and not defective, such as having missing or broken parts; - Kept at least 10 feet away from power lines and other electric equipment. For lines and equipment over 50 kV, the distance should be 10 feet plus 4 inches for every 10 kV over 50 kV. - Inspected before each use, and remove damaged or defective ladders; - Secured to avoid slippage; and
- Used according to the manufacturer’s instructions. Aerial lifts are: - Maintained and properly set up for use; - Used according to the manufacturer’s instructions; - Not used as cranes to lift or hoist tree parts or material unless designed for that purpose; - Only used with fall protection equipment including tie-off; and - Kept at least 10 feet away from power lines and other electric equipment. For lines and equipment over 50 kV, the distance should be 10 feet plus 4 inches for every 10 kV over 50 kV. Workers who climb trees are trained on: -Climbing techniques; - Using climbing spurs with gaffs that are compatible with the tree they will climb; - Using a second means of fall protection such as a work-positioning lanyard or a second climbing line, in addition to using an arborist climbing line; - Lifting and lowering hand tools and equipment; and - Carrying only hand tools and equipment that are necessary for climbing. Identify and provide without cost properly fitting personal protective equipment to protect workers from fall and overhead falling object hazards, and ensure that the workers use the equipment and are trained in its proper use. natarajan.joann@dol.gov 512-374-0271 x232
Submitted to Construction News
Summer Tee’s
West W. Winter is a partner at McNelis + Winter, PLLC. A LEED Green Associate, West serves on the board of the Construction Law Section of the San Antonio Bar Association and has been listed as one of the Best Lawyers in San Antonio for Construction Litigation. West can be reached via email: west@mcneliswinter. com.
Submitted to Construction News
Thumbs up The Greater Austin Contractors & Engineers Association (ACEA) Summer Golf Tournament was at Barton Creek Lakeside Golf Course in Spicewood Jun. 9. Pictured: The Cash Construction Co. Inc. team –ab
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Austin Construction News • Jul 2015
Swingin’
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ocal contractors practiced their golf swing and networked with friends in the construction industry at the 3rd annual TopGolf event held at TopGolf on Burnet Road Jun. 12. The Associated Builders and Contractors Central Texas Chapter (ABC) held the event. –ab
L-R: Stephany Hayes and Cynthia Birdwell, Andrews Myers
L-R: ABC Chairman of the Board Jason Beers, Harvey Cleary; Steve Schultz, ABC San Antonio Chapter President and Josh Tompkins, ABC Central Texas Chapter President
L-R: Robbie Ketch, Vera Franklin and Rachelle Castillion, Lasco Acoustics & Drywall
L-R: Trevor Spring, Ryan Companies and David Smith, TDIndustries
Steve Spencer and Lauren Gier, The Premier Group
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Austin Construction News • Jul 2015
Page 9
A lasting experience by Capt. Steve Schultz Sponsored by: Premier Yamaha Boating Center, Majek Boats, E-Z Bel Construction, Power Pole Shallow Water Anchor, Aggregate Haulers, ForEverlast Hunting and Fishing Products and Columbia Sportswear.
Tony Rios and son, Trent Rios of San Antonio, recently caught these sow trout that will both be mounted. Tony’s trout went 8 lbs. and was 30 in. while Trent’s fish was 26 in., 6 lbs. Both trout were released after photos by Capt. Steve Schultz.
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ast month I had an opportunity to be part of something special. One of my sponsors approached me to see if I would be interested in being a part of a TV show that helps fatherless kids in the outdoors. The organization is called Majesty Outdoors. They focus on taking fatherless teenagers on their maiden outdoor adventure. Whether it be in the field or on the water, the show focuses more on educating the teen in the outdoors more than harvesting a large trophy animal or fish for the TV show. In addition, every teen who appears on Majesty Outdoors television is eligible to receive financial support to further their education beyond high school. On this outing the sponsored teen, Stephen, was from the San Antonio area and he was joined by another gentleman
name Marty who is from Hallettsville, Tx. Marty lost his best friend and father several years ago and has not been able to fish or enjoy the outdoors since his death. Joining both of these gentlemen was good friend and owner of ForEverlast Outdoor Products, Billy Gerke, along with the host of Majesty Outdoors, Bill
Alaska awesome
Blodgett. On the first of two days Stephen set the pace fishing with Guide Preston Whitely by landing a 30-in. speckled trout. Both Stephen and Marty shared the camera time by catching speckled trout throughout the day. On day two, both anglers joined myself and Bill Blodgett for another day of trout and red fishing. The day started out fast and furious with both Stephen and Marty catching their limit of trout in less than an hour and continuing to catch keeper trout while looking for a trophy. Before long the trout bite turned off and we were in search of redfish. We transitioned over to the flats where we got out of the boat and commenced to wade a sandy flat for reds. Although red fishing was slow for the day, both gentlemen did manage to hook up on slot size reds and experience the pull of a true South Texas saltwater fish. What a great experience having these two young men on my boat for the day, along with two of the finest men in the industry, Bill Blodgett of Majesty Outdoors and Billy Gerke of ForEverlast Outdoor Products. If you are interested in helping out in any way, you can visit Majesty Outdoors website at majestyoutdoors.org. Also look up ForEverlast products at foreverlastonline.com for some of the finest hunting and fishing products in the industry. To schedule your next bay fishing trip give Capt. Steve Schultz a call at 361813-3716 or 361-334-3105 or e-mail him at SteveSchultzOutdoors @ gmail.com. Good luck and Good Fishing.
STEVE SCHULTZ OUTDOORS, LLC BAFFIN BAY –– LAGUNA MADRE –– LAND CUT SPECKLED TROUT –– REDFISH –– FLOUNDER FISHING AND HUNTING TRIPS
(361) 813-3716 (361) 334-3105 www.baffinbaycharters.com steveschultzoutdoors@gmail.com U.S. Coast Guard & Texas Parks and Wildlife Licensed
Sue Johnson, Construction News, and her husband, Scott, went to Alaska in May. They are in front of Marjorie Glacier in Glacier Bay. “Pictures do not do justice to the beauty of nature up there’” said Sue. “I got to check Alaska and seeing humpback whales off my bucket list! It was a fabulous trip.” –sj
A hungry humpback whale opens wide for food.
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Austin Construction News • Jul 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.am1300thezone.com
Oh Deer!
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hat a year for deer! For the first time in years we do not have to worry about our whitetail deer making it through a hot, dry summer! This year plenty of rain and milder temperatures have turned Texas into a paradise for our wildlife. It seems like we have had a good fawn crop because the does have had plenty of food and water while they carried fawns. But just as important, they still have plenty while they are nursing and tending their young. In past years we have seen so many deer lost to the highways as they searched for water and fawns lost to predators while the does went out to find scarce food in the pastures. Not this year! The rain has brought us back our rivers and lakes just in time for us to enjoy time on the water this summer. As the waters settle down fishing is going to go from good to better and draw our attention to fishing, but we need to take a little time to think ahead to hunting season too. Do you realize that by July a buck’s antlers are already about 50% formed? From now until the velvet comes off in the fall they will be putting the finishing touches on those antlers. Up to this point the mild, wet weather has benefitted antler growth too, but now we are coming into the part of summer that can be stressful for deer.
Builders Gypsum, Austin
Summer heat can dry up smaller rain fed water sources. High temperatures are as hard on deer as anyone else and all they can do is endure them. Insect pests prey on them too. If you can help your deer endure these seasonal stresses better by being sure they still have adequate sources of water and plenty to eat you will see better antler grown as they finish up and more fawns surviving. Think about it. Nature is concerned with keeping the animal alive first. Horns and babies are just the icing on the cake. If you make sure the basic needs of the animal are fully met, then you get big horns and lots of fawns. This is the time of the year to do some planning and preparation for your hunting grounds. If you need to move feeders and blinds around, this is the time to do it. That way you have several weeks for the deer to get used to any changes you make in the pasture. Watch out for snakes and wasps and take care not to get too hot. It can be hot sweaty work this time of year, but you will be glad you got it done when you are sitting in that blind in November and that big buck steps out! Get that done and hook up the boat or call your favorite guide and head back to the water! Then you can enjoy your reunion with the lakes knowing what great hunting you’ll have in the fall!
Wortham
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The Antenora Architects staff hit the trails and assisted park rangers with trail clean up on National Trails Day at Blunn Creek Nature Preserve Jun. 6. –ab
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SEND IN YOUR PHOTOS . . . fishing, hunting, skiing, biking, racing, or any outdoor activity or sport.
Austin Construction News • Jul 2015
Page 11
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Submitted to Construction News
Making friends
The thunder rolls
Zach Reagor, son of Verlon Reagor, owner of Reagor Air Conditioning, feeds a friendly whitetail deer under the shade in Burnet. –ab
Molly Young, SolarTex, took this sunset photo in Austin after all the Memorial Day storms. –ab
www.constructionnews.net publishing the industry’s news
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Page 12
Austin Construction News • Jul 2015
Panning ahead
Submitted to Construction News
Swift transportation
Instead of driving their cars, Walter P Moore Austin employees participated in Bike to Work Day in May. –ab
General manager Paul Sulman
T
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here was a time when Stormwater Pollution Prevention Plan (SWPPP) requirements were in effect but not thoroughly enforced. Those times are gone. Hefty fines are teaching construction companies that responsible disposal of jobsite materials can’t be left to chance. Seattle-based Eco-Pan Inc. has recently expanded its operations into Texas due to the growing need for its services. “When companies need to perform concrete pours on jobsites, Eco-Pan Inc. places pans under concrete pump hoppers and shoots for washouts,” said general manager Paul Sulman. “Lids are placed on the pans, which are then hoisted by crane onto trucks and transported safely for recycling.” Construction growth in Texas has increased demand for concrete recycling,
which prompted Eco-Pan Inc. to open an office in Buda in Dec. 2014. Each office starts with a single truck and grows only as demand dictates. Brian Crutchfield is the manager in Buda and salesman Todd Hellums operates the truck and does a little bit of everything at the company. “We opened the Buda office to service the Austin, San Marcos and San Antonio markets,” Hellums said. “We are currently sharing a yard with a concrete pumping company. “It is exciting we are getting new customers every day. Right now we are trying to get our name out there as much as possible.” Seattle-based Eco-Pan Inc., a LEED accredited concrete washout containment system with offices in Arizona, California, Colorado, Georgia, Idaho, Oklahoma, and Oregon and Texas. –mjm/ab
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Austin Construction News • Jul 2015
Page 13
Beachin’ it
T
he Plumbing Heating Cooling Contractors Texas Chapter (PHCC) annual conference took place at the Moody Gardens Hotel Spa and Convention Center in Galveston Jul 11-12. Despite all the rain in the area, air conditioning and heating contractors from around the state gathered at the opening reception. The next day, 22 vendors showcased their products at a tradeshow. –ab
Nancy Jones was honored at the event for all her hard work at PHCC Texas.
Rick Shelton, Shelton Plumbing (right) and friends
Southern Demolition, LLC Serving the Austin–San Antonio corridor AUSTIN 8721 S 1st Street Austin, Texas 78748 (512)222-6805
Milton Frank, Milton Frank Plumbing Co. Inc.
SAN ANTONIO 4754 Shavano Oak, #102 San Antonio, Texas 78249 (210)901-8778
www.SouthernDemo.net Who We Are L-R: Rhonda Dowdy and Sam Dowdy, S & D Commercial Services (center)
When quality service counts for your GPR scanning, concrete saw cutting, wall sawing and selective demolition, our team of professionals are here to provide our clients with quality service work and customer service. We pride ourselves on superior workmanship while developing long lasting relationships with our customers and 100% satisfaction.
Our Services L-R: Ray Jones, Raven Mechanical LP and Carter Ramzel, Benchmark Plumbing
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Inside track
L-R: Salesmen Theo and Craig are ready to start their week at Mar-teK Contractor Supply LLC in Austin. –ab
• GPR Scanning • Scanning Reports • Concrete Coring (Slab & Wall) • Concrete Saw Cutting (Interior & Exterior) • Concrete Wall Sawing • Selective Building Demolition
Occupational Safety and Health Administration
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Austin Construction News • Jul 2015
Submitted to Construction News
Looking good
Serving meals
T
he Associated General Contractors Austin Chapter (AGC) Construction Leadership Council (CLC) volunteered at a Rebuilding Together of Austin community service project Jun. 20. Volunteers replaced siding, painted the exterior and did landscaping work at an East Austin home. Cindy Spackman, Rebuilding Together of Austin, coordinated the event and Kyle Pennington served as the project captain. –ab
On Jun. 7, a group of volunteers, including several Bartlett Cocke General Contractors employees, made their way to Wimberley to help support the flood victims of the area. L-R: Front row: Cassidy Ohlenbusch, Gina Salazar, Rachel Valdez, Benny Rodriguez, Manny Valdez, Rebecca Lujan. Back row: Danny Rampt, Karen Lindstrom, John Williams, Brian Tandy, Debbie Stallings, Susan Martin and Ray Martin –ab
The Associated General Contractors Austin Chapter (AGC) Construction Leadership Council (CLC) group
Round-Up Architectural designer Seth Hammonds has joined the Stantec Austin office. As architectural designer, Hammonds will deliver K-12 and higher education projects throughout Texas and the Gulf region.
Submissions This is a section for brief company announcements of new or recently promoted personnel, free of charge as space allows. –––––––––––––––––––––––––––––– Email with “Round-Up” in the subject line (w/digital photo, if available) by the 15th of any month, for the next month’s issue to: Austineditor@constructionnews.net
The exterior painting is underway.
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Attention to details
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Texas State Representative Paul Workman gave a legislative update at a Construction Financial Management Association Austin Chapter (CFMA) luncheon event held in June. –ab
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Shoveling dirt
A ground breaking ceremony took place for The Medical Towers at Sawyer Ranch project in Dripping Springs Jun. 9. Structura Inc. is the GC. –ab
Austin Construction News • Jul 2015
Page 15
Electrical Industry Wired for change Mark Coshal IEC San Antonio, Instructor IES Commercial, Superintendent San Antonio, TX
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he National Electrical Code (NEC) is published every three years, and each new edition brings changes to the electrical industry. When the local building codes change, the impact is even more drastic and immediate, according to Mark Coshal, a third-year curriculum instructor for the Independent Electrical Contractors (IEC) San Antonio Chapter and a superintendent for IES Commercial. At 38, Coshal has been working in electrical for 15 years, 12 of which have been with IES. He has been an instructor at IEC for eight years, and in 2013, he earned national recognition as Instructor of the Year. He is also on IEC’s book review committee, which writes the curriculum and keeps it updated. His experience in the field and as an educator, who also spends time in the IEC classroom as a student to stay current, affords him a good opportunity to keep up with the amount of changes in the industry, which he feels is one of the most difficult things about being in electrical. “We get a new code every three years, and so we have to keep up with that,” says Coshal. “But then, technology changes, and every time they add a com-
puter or add a different type of light fixture or even just changing out a regular incandescent lamp for one of those little compact fluorescents that everybody is going to now – it makes an impact on the way that things have to be wired in the [projects] from the ground up.” With these changes in technology, he observes that the code book is now covering areas that were not there in the past, including circuitry and electronics as well as solar power and green energy. With standards leaning toward the green, that adds to the complexity of those electrical jobs. “One of the issues with going greener is that you get a bunch of transient loads on your circuitry that causes an increase in ampacity on your neutral wires,” he explains. “The first thing that
Growth strong, skilled labor weak Thayer Long, Executive Vice President/CEO Independent Electrical Contractors Alexandria, VA
H
ow would you describe the state of the construction industry in general terms? Have you heard of an increase or slowdown in business? Generally, the construction industry is strong in the vast majority of the country. It is still rebounding from the economic downturn, but the majority of business owners are cautiously optimistic about the future and that the increased business will continue. Most sectors (i.e. healthcare, education, manufacturing and commercial) are experiencing an incline in work and state and local government investment in infrastructure is also driving growth. What factors are driving this increase/ slowdown? A healthier economy is certainly a
huge help to any recovery. This leads to more confident business owners and consumers. What are the “hot button” issues in your industry? The largest threat to the electrical industry is a shortage in skilled labor. Electrical contractors across the country are struggling to find individuals who want to join this rewarding and lucrative occupation. There are very unique opportunities available to electricians, including apprenticeship, that allows students to earn money and gain on-the-job skills to accompany their classroom learning. Additionally, electrician is a very entrepreneurial field. We have many people who have graduated from our apprentice program and worked for a contractor for
went away was what they call multi-wire branch circuits, which is sharing of neutral loads on different circuits. They’re requiring independent neutrals for everything, which adds wire to the job, adds circuit ampacity, which increases wire size, and in essence, it makes the job cost more money. “They’re going to save money in the long run by running a more efficient light bulb essentially, but in the initial cost, it’s pretty substantial. There’s quite a bit more wire to be pulled. There’s larger wire that has to be pulled. The transformers associated with all of those circuits have to be increased in size to be able to handle the increase in capacitance on the wires. “It’s changed the way that everything is circuited. It’s changed the way that we route our conduits. It’s changed the way that we size all of our conduits and our wire and then, of course, the cost impact. So, we have more work going into a job.” Meanwhile, the industry is still suffering a labor shortage. More work going into a job means more labor to get the job done on accelerated schedules. With the field being drastically undermanned, Coshal comments that they need more people who know what they are doing and the IEC apprenticeship school helps to turn installers into electricians by preparing them for their journeyman test to get their license. He believes the key is to
get the knowledge out there so the people in the field understand the changes that are happening – why they are upsizing neutrals and why transformers are getting bigger, for example. “In the field, we see it on a print and then we do it,” he says. “But in the classroom, you’re able to teach them why that’s happening. You can actually show them the physical difference that is being produced by the different types of greener things and it doesn’t just have to do with the green stuff. “Computers do the same thing. With everything becoming more and more computer-oriented, you have more and more circuitry in buildings for computers, and they do the same thing. They produce a capacitive load that increases neutral demand. A lot of it is taken care of with the code and we have to adapt the curriculum to meet that code and to teach what’s new going on in the field.” While many of his students are new hires, some are also people who have been in the industry for a while, because in the electrical industry, knowledge really is power. “A person that understands why he or she is running a wire from point A to point B is more valuable than a person that has to be told, ‘Okay, pull that wire from point A to point B.’ Contractors will hire new people and want to put them in school to get them to learn.” –mh
years then opened their business.
their impact on so many different systems, electrical contractors are leading the way on making substantive improvements to buildings’ energy-efficiency.
What is on the horizon for your industry? Changes in technology; equipment; materials? Technology is changing in the industry. To combat the labor shortage, companies must be more efficient in handling and installing electrical material. Building Information Modeling (BIM) and other tools increase the need for digital availability. The adoption of smart devices has been prevalent on jobsites. The technological improvements are going to continue to positively impact the construction industry. With the recent emphasis on green building, what is the most environmentally friendly change relating to your industry? Lighting and lighting controls have been a recent revolution in electrical work. This includes using more energy efficient lighting fixtures, controlling and automating lighting for maximum efficiency, and energy use for heating and cooling system. According to the Energy Information Administration, 60% of an office building electricity is used in lighting, cooling and venting the space. With
What cost increases relate to your industry? Commodity and material costs are always fluctuating, driven by normal courses of supply/demand globally. Wages rates are starting to rise markedly, and will continue to do so with labor shortages and again, economics of supply and demand. What are the rewards of the industry? A career in electrical involves working in a challenging, sophisticated, and technologically evolving industry. It provides one with a lifetime skill and endless education due to the constant construction evolutions. Electricians will always be in high demand and continue to provide high wages. IEC is a trade association representing more than 3,000 members with 53 chapters nationwide. IEC is the nation’s premier trade association representing America’s independent electrical and systems contractors. –cw
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Austin Construction News • Jul 2015
Electrical Industry Solar up, copper theft down Dave Riddle, Owner Dave Riddle Electric Company Farmers Branch, TX
H
ow would you describe the state of the construction industry in general terms? Have you heard of an increase or slowdown in business? Our goal for our team is to work together to provide a “job well done.” We are blessed to be where we are, when we are. Northeast Texas is such a healthy business environment that will continue to grow well into the future. Having more businesses come to the D/FW metroplex will increase the population coming into D/FW. The demand for work increases, and that is where the industry is at right now. It is a wonderful time to be in the area with the new companies springing up all over. What factors are driving this increase? This area is attractive to business because of the weather, resources and tax
structure. Anytime an area is as healthy as D/FW, people are going to be drawn to it. What are the “hot button” issues in your industry? Safety training is a constant requirement. Weekly safety meetings at the job site with specific subjects relevant to the project will help increase awareness. Continuing education and code changes are most important. What is on the horizon for your industry? Solar power, energy saving lights and controls and continuing education are all-important. Riddle Electric is pursuing and completing projects outside of the D/FW area, but within the state. With the recent emphasis on green
Never stop learning Luis Lopez, Owner LPZ Electric LLC Austin, TX experienced electricians. Ask questions and keep learning every day.
W
hat is your perspective about the state of the construction industry? Commercial construction is strong in 2015. We have had plenty of work this year. I have noticed there are lots of restaurant and retail projects going up these days. Right now it seems everyone is busy in the electrical trade, as well as other construction trades. Why did you become an electrician? I have worked in the electrical trade since 1998. I was intrigued with wiring buildings. I started my career as a helper, worked my way up to work on more commercial jobs and eventually started my own company. What are the keys to success? Rapid service and dedication to 100 percent customer satisfaction are the keys to success. It is important to have competitive and fair prices. You have to put in long hours in the electrical trade. Sometimes we work 10 to 12 hour days. Be prompt on every job. Offer efficient, timely service whether it is for a minor renovation or a new complete build-out. If a young person wants to work as an electrician, what advice would you give him or her? I think it is a good idea to start in the field but it is also helpful to sign up for apprenticeship classes. Learn everything you can from more
What qualities do you look for in new employees? When I hire new employees, I look for responsible, reliable, honest and hardworking people. You don’t want to hire someone
building, what is the most environmentally friendly change relating to your industry? There are a few, actually: recycling, installation of solar panels, daylighting and lighting controls. Riddle Electric currently has solar panels installed on our building and have had them for a few years now.
relationships with others in the industry, and the satisfaction of being a part of building our community. We have done many projects within the state of Texas and we are proud to have our name attached to them. We are constantly developing new relationships with contractors and businesses that help us grow as a community and as a business.
What are the cost increases related to your industry? Healthcare, energy code requirements, and the fluctuating cost of raw materials are a few possible increases within the industry.
What are the keys to being successful? Working a project from conceptual budgets all the way to completion. Estimating, bidding and working the job to completion with people that take pride in their job is our goal. Having a stable base of employees will greatly impact the relationships with the customer. They can depend on excellent quality because they have come to know and trust the employees on a regular basis.
Has the theft of copper affected pricing of work? No, not yet. We have seen copper theft decline, since recycling companies started requiring driver’s licenses and a job name before accepting material. Keeping the job sites locked overnight will reduce the amount of theft if there is any. What are the rewards of the industry? There are many rewards that we have experienced. Watching our employees grow with their families, developing
who doesn’t show up to the job. I look for someone who has good communication skills, too. How have you seen your industry change since you began working in the trade? There are new and improved tools and equipment nowadays. Technology has advanced so much since I first began working in the trade. Residential and commercial customers also want more energy-efficient accent lighting and general illumination for their homes and businesses. Why is your job rewarding? I just love it. I enjoy working with my
Dave Riddle Electric Company has been serving the commercial electric needs of the D/FW area for more than 28 years. Established in Houston in 1974 and relocated to Farmers Branch in 1984, the company serves the educational, religious, healthcare, facility, retail, corporate and restaurant markets. –mjm
entire team. They are a great group of people. In addition, I like working outside on nice days. I do spend time at the office, but I really like getting out in the field. What is on the horizon for the electrical trade? I think the electrical trade will continue to improve in the future. If young people don’t want to go to college, they can always sign up for apprenticeship classes in their area. I hope more folks will enter the trade right out of high school. It is a great way to make a living. We need more hardworking people to enter the trade. –ab
Austin Construction News • Jul 2015
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continued from Page 1 — Arriving in Austin the company’s business management software. Alterman has recently hired an estimator who trained in San Antonio and joined the Austin office to support its growth. “The goal is to model their business after ours, our structure and the way we do business, which were very similar to begin with,” says Wright. “So, it’s not a difficult transition at all. “It was really an asset purchase, the idea being to have a good, strong core group of people that stayed with the company. That was exactly what we were looking for, because they’re the ones who have the relationships with suppliers, contractors and owners in Austin.” He explains that expanding to Austin made the most sense in starting to
grow geographically, because they have a lot of common customers, vendors and suppliers that operate in both locations due to their proximity. “Austin and San Antonio are very similar markets,” he says. “Although they’re built on different economic drivers, they’re the two most recession-proof cities in the country. So, it’s great to have a presence in both, and we’re going to take Austin at a speed that we’re comfortable with. We want to see steady growth while maintaining the Hill and Alterman reputations.” Alterman Inc. is a 100-percent employee-owned San Antonio-based electrical contractor that was established by Nathan Alterman in 1923. The new Alterman office in Austin is located at 10100 North Lamar. –mh
continued from Page 1 — Ready to ride Founded by Deville in 2012, Austinbased Deville Custom Homes/Deville Construction specializes in all custom work
from building to custom-made concrete countertops. –ab
Association Calendar
Content submitted by Associations to Construction News AGC
CTSA
Associated General Contractors
Central Texas Subcontractors Assn.
Jul. 7-10: TEEX OSH 309 - Electrical Standards Jul. 9-10: OSHA 10 Hour Training Jul. 13: TEEX OSH 750 - Intro to S&H Management Jul. 14-16: TEEX OSH 301 - Excavation, Trenching & Soil Mechanics Jul. 17: TEEX OSH 730 - Confined Space Jul. 21-24: Respiratory Protection TEEX OSH 222 Jul. 27: TEEX OSH 725 - Health Hazard Awareness Jul. 28: MEDIC First Aid BasicPlus Jul. 28-29: TEEX OSH 755 - Intro to Accident Investigation Jul. 30: TEEX OSH 720 - Bloodborne Pathogens For more information call 512-442-7887
Jul. 14: Monthly meeting, 5:30pm-6pm Social Hour, 6pm-8pm Dinner and Presentation, Embassy Suites, 5901 N. IH-35 For more info visit www.ctsaonline.org
AIA
Jul. 16-18: Summer Membership meeting/seminars, Hyatt Regency Lost Pines Resort and Spa 575 Hyatt Lost Pines Rd, Cedar Creek For more information call 512-251-7690
American Institute of Architects
continued from Page 1 —Marking a milestone
Jul. 1: BEC: Austin Jul. 2: CRAN meeting Jul. 8: Emerging Professionals meeting Jul. 13: COTE meeting Jul. 14: ASLA-CTX CodeNEXT Committee meeting Jul. 16: Small Firms Roundtable & Latinos in Architecture meeting Jul. 17: AAH meeting Jul. 21: Design/Voice meeting Jul. 22: Urban Design meeting Jul. 30: Activities meeting For more information call 512-767-7436
NARI Nat’l Assn. of the Remodeling Industry
Jul. 16: Summer Social For more info visit www.austinnari.org
NAWIC Nat’l Assn. of Women in Construction
Jul. 1: Chapter meeting, Big Daddy’s Burgers, North Austin For more info visit www. austinnawic.org
RCAT Roofing Contractors Assn. of Texas
USGBC U.S. Green Building Council
Jul. 9: IECC Codes Jul. 21: North Texas Sustainable Showcase 2015 For more info: www.usgbc-centraltexas. org
Submitted to Construction News
Chicago bound
Attendees network at the crawfish boil.
In his free time, Jason Reynolds, area manager, volunteers with many local organizations such as Rodeo Austin, the UT Merit Badge University for Boy Scouts, Smiles for Sammy and the KCCO Ability Field. He has also served with the Vista Ridge Football Booster Club. G&AI is a Texas corporation with offic-
es located in Fort Worth, Dallas, Houston, Austin, San Antonio and Lubbock. The firm provides full service professional land surveying, geographic information systems, Mobile LiDAR, aerial photogrammetric/LiDAR, HD laser scanning, geotechnical engineering and construction materials testing. –ab
Moving forward
B
urt-Watts Industries is now The Burt Group. The Austinbased general contractor has expanded its executive team and named five key leaders. The rebranding and reorganization also reflects the departure of Shane Watts, formerly vice president and co-founder of Burt-Watts Industries. The company The Burt Group management team was founded in dent of client services, Edwina LashAustin in 2002. “I am very proud of what Shane and I brook, vice president of preconstruction, accomplished and I wish him all the best,” Jerry Dollar, vice president of operasaid Tommy Burt, CEO, The Burt Group. tions, Joe O’Jibway, vice president of “While our name has changed, our values construction and Billy Lashbrook, vice remain the same. These changes will al- president of construction services The Burt Group general contracting low us to continue our long-term vision for growth and innovation in the indus- firm specializes in interior finish-out, adaptive reuse construction and ground-up contry.” The Burt Group’s leadership team is struction in health care, restaurant, hospinow comprised of six executives: Heath- tality, corporate, manufacturing, industrial er Merz, CFO, Troy Chapman, vice presi- and technology environments. –ab
Designers from the STG Design Austin office flew to Chicago in June for the NeoCon event. The three-day event included exhibitions and educational seminars all related to the world of design. –ab
Submitted to Construction News
Common ground
Flintco LLC representatives recently attended the University of Texas at Austin Advanced Computing Center project groundbreaking ceremony. –ab
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Austin Construction News • Jul 2015
Austin Construction News • Jul 2015
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Submitted to Construction News
Submitted to Construction News
Out on the town
All aboard
SpawGlass Austin division held a Ladies Day Out in May. Everyone enjoyed breakfast at the Westin Hotel in the Domain and afterward the group attended a painting class. The day finished out with bowling and lunch. –ab
Submitted to Construction News
Swing for the fences
American Tile & Stone hosted a traveling road show and barbecue lunch in mid-June. During the event, the company showcased products and customers had the chance to win prizes. –ab
Submitted to Construction News
Play day
Cedar Park Overhead Doors employees and their families participated in the Texas Humane Heroes Dog Leg Classic at TopGolf Austin in May. –ab
Construction News JOB SIGHT
Right on schedule
The McCoy’s Building Supply Management Development Class, Select Home Design and Solluna Builders, built a playhouse for the Centro Esperanza organization in June. –a
Airco Mechanical is the HVAC contractor andJOB Chasco Constructors is the GC at Construction News SIGHT the Lexus of Lakeway project on Ranch Road 620. –ab
Construction News JOB SIGHT
Dig it!
A Grand Republic Construction LLC crew member does wet utility construction work near Burger King on Ben White Blvd. –ab
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Austin Construction News • Jul 2015
Summer fun in the sun
rchitects, designers, engineers and contractors took their tools to East Beach in Galveston May 30 for the annual sandcastle competition. More than 60 teams had their eyes and shovels set on winning the Golden Bucket Award. Participants stretched along the beach, sculpted their sand piles and worked non-stop for five hours. The judging of the sandcastles was rated on originality of concept, artistic execution of the concept, technical difficulty, carving technique and utilization of the site. The Houston Chapter of the American Institute of Architects (AIA) hosted the event. –ab Congrats to the winners! Most Complex: PflugerFlintco - Positive/Negative Most Hilarious: Kirksey - Jurassic Seuss Most Lifelike: CDI: Medusa Best Traditional: Gensler - Drift Outside the Shell Best Architectural: cre8/Duratech/ Matrix - Michael's Grave Let the Games Begin: Walter P Moore/ Baker Concrete Operation Stars and Stripes: SWA Group - The Lone Star-fish The Sydney LeNoir Public Favorite Award: Freese and Nichols Inc. - Left Shark Best Team Sign: Ziegler Cooper Architects - 20,000 Leaks Under The Sea Best Team Costume: US "N" SAND - Lame Duck Season AIA College Challenge Award: The University of Houston Architecture Students and Alumni - Baymax: Your Personal Sandcastle Companion
That’s Entertainment: Integrity Structural Corp. Power Up with Integrity
Gold Bucket Winner: Kirksey - Jurassic Seuss
Silver Shovel Winner: Gensler - Drift Outside the Shell
Bronze Shovel Winner: The Dow Chemical Co. Beauty and the Beachslayer
Honorable Mention (4th Place) Ziegler Cooper Architects 20,000 Leaks Under The Sea
Honorable Mention (5th Place): Matrix Design Built By The Egyptians
Honorable Mention (6th Place): HDR Inc. - Texas Pictionary
What’s on your bucket list? I’d like to go on a driving trip with my wife Liz. We are actually planning to take a driving trip soon. We would like to drive south and east to South Carolina. We have always wanted to see that part of the country. Tom Roland, Phoenix Electric Inc. Ride my motorcycle in the Hill Country. Davis, Davis Electric
Take a family trip to Tennessee. Jud Stringer, Building Abatement Demolition Co. I would really like to go to Africa or South America. I need to visit more places in the United States, too. Alex Drees, Dutch Built Construction Travel to Ohio to see relatives. John Waller, A to Z Rental
Spend time in Dripping Springs with my family. Wade Huggins, Capitol City Millworks Take a road trip to San Antonio. Michael Moreno, Farmers Copper Ltd.
Go deer hunting in South Texas with my best friends. Don Putzier, Don Putzier Handyman Services
Go bass fishing with my friends. Tony Sauseda, G & S Mechanical
Explore Marble Falls. It is a beautiful town. Cheryl Webb, Ken’s Heating and Air Conditioning Retire in the Hill Country! Mike Owen, Owen Construction
I want to go sailing! Kiva Cotham, Cotham Construction Services & Roofing
Go snowboarding and mountain biking with my family. Marc Molak, Soledad Builders
Scuba diving! Richard Cordes, Fast & Fair Doors
I want to have my own fishing show. Gene Calloway, ATX Fence Supply One of my favorite things to do is to go to Colorado. I’d like to live there one day. I love the mountains. I like to go to Colorado in the summer or winter – it doesn’t matter to me. I’d really like to live in the southwest corner of the state such as Durango. Scott Weaver, Red Grizzly Electric I’d spend more time in the great outdoors. Derrick Hubbard, H & H Hardwood Floors Go waterskiing on Lake Austin with my family. Alan Heine, Alan Heine Painting Compete in a triathlon. Bret Biggart, Freedom Solar I want to go surfing again! I used to surf when I was a kid. Rudy Lopez, B & A Masonry Retire! Steve Faught, Skinner’s Custom Screens & Windows Go fishing at Lake Falcon, which is near the Texas Rio Grande Border. Ernie Kuehner, Ernie’s Welding Shop