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Volume 14
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Number 1
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JANUARY 2016
Family matters
15 years and counting
The Ingram Plumbing crew at the Webster location
The Shelmark Engineering staff gathers at the Dickinson office.
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wner Rick Ingram, Ingram Plumbing, learned the plumbing trade from his father, Richard, and is now teaching all he knows to his sons, John, Ricky and Kevin. “My father opened the company in 1952,” Ingram said. “I still have a copy of his first plumbing license framed on the wall in my office. I also have invoices he wrote back in the ‘50s. “We have provided plumbing work for customers for three generations. We are very blessed!” Ingram says Ingram Plumbing is a faith-based company. Ingram and employees pray at the office in the mornings before they head out in the field.
“We strive to show up on time for every residential and commercial job.” Ingram said. “I think the keys to success in the plumbing business are caring about all clients and their satisfaction and having well trained, experienced and qualified technicians.” According to Ingram, the company is currently bidding on several jobs in the area and has recently completed a commercial job in Houston. In December, employees had a great time at the local parade and Christmas celebration called Holiday in the Park held in League City.
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ickinson-based Shelmark Engineering LLC entered the marketplace in 2000 and has grown to one of the largest engineering firms in Galveston County. Founding principal and president Marcus Michna, PE, handles the company's business operations as well as serves as principle engineer for larger civil/ structural projects. His wife Shelly, co-founder and vice president, takes care of duties such as human resources, accounts payable and payroll. “After careful deliberation and planning, Shelly and I started the business on a card table in our dining room,” Michna
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said. “Next, we moved the company to a storage unit and then to a small building in League City and a larger office in Texas City.” The firm has operated at its current Dickinson location for three years. “To stay in business 15 years, I think it takes lots of luck,” Michna said. “You have to have contacts and work with good people.” The company has increased its workload in Galveston County this year. Michna says he has seen the commercial market grow in the area in 2015. Each year, Shelmark Engineering has
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Constructing with care
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inbeck Group LLC has completed the Houston Methodist Cypress Emergency Care Center project on the Northwest corner of Highway 290 and Fairfield Creek Drive. Houston Methodist Willowbrook Hospital is the owner. Project manager Craig Fredrickson, Linbeck, says the newly constructed, freestanding, 9,600sf full-service emergency care facility has 10 exam rooms, triage and associated support spaces. Significant offerings include digital radiology with low radiation doses, ultra-sounds, lab and pharmaceutical companies on site. “The Emergency Care Center follows a prototype design, which ensures consistency while reducing development and construction time,” Fredrickson said. “In terms of community impact, the standalone emergency care center model offers a full range of emergency services
to the local community for treatment and transfer to Houston Methodist Hospital campuses with full hospital access.” According to Fredrickson, the “Houston Methodist” brand design features include a gabled entry atrium and warm, inviting materials. Patients can now rely on safe, quality, emergency care close to home thanks to free, convenient parking and an easily accessible front entrance. The primary construction materials used for the interior included stone floor entry, seamless vinyl, carpet and VCT, plam millwork, drywall with lead lined drywall for radiology, multiple fixture types (chandelier to 2x4 fixtures), combination of ceilings drywall and laying 2X2 tiles. The primary construction materials used for the exterior included masonry with glass curtainwall front entry. The Houston Methodist Cypress Emergency Care Center gabled entry atrium
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Merrily merrily
Submitted to Construction News
TDIndustries employees catch up with friends.
Ziegler Cooper Architects, Arch-Con Construction and Brown & Gay Engineers gathered at the Grand Corners II project groundbreaking ceremony in December. –ab
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DIndustries Houston office employees gathered at a Christmas party at Sam Houston Race Park Dec. 4. Attendees enjoyed mingling with friends, having dinner and they also played casino games. Founded in Dallas in 1946, TDIndustries opened the Houston office in 1980.
Graham Moore is the president, Nikki Morgan is the senior vice president, Ronell Peters is senior vice president, Houston special projects and Randee Herrin is senior vice president, new construction. TDIndustries is a mechanical construction and facility service company. –ab
Shoveling dirt
Submitted to Construction News
Moving ahead
A topping out ceremony recently took place at Applied Optoelectronics Inc. expansion project in Sugar Land. Yong Architects Inc. is the project architect and general contractors Skanska and B. Bell Builders Inc. are the construction team. –ab Folks line up at the dinner buffet at the Sam Houston Race Park.
Submitted to Construction News
Common ground
Did You know ? Correction
A ground breaking ceremony for the Harris County/City of Houston Joint Processing Center took place in late October. PGAL is the project architect and Clark Construction Group-Texas LP is the construction manager. –ab
Houston
CONSTRUCTION NEWS
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Construction News reaches your target market
In the December issue Great Outdoor section “Reeling it in” fishing photo, the company Gregory Cokinos works for was incorrect. He actually works for Cokinos Bosien and Young. –ab
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Houston Construction News • Jan 2016
What did you do next? I took a little break but I continued to work at the company part time. I did office work for a company in Alvin. The experience gave me insight on how to handle different situations and different ways to do business. When my father passed away, my brother Antonio and I took over the company.
Brandi Matthews Owner Alvin Glass & Mirrors
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randi Matthews remembers spending lots of time at Alvin Glass & Mirrors during her childhood. Her father Charles Brinkerhoff purchased the company in 1984. The original owners established the Alvin-based company in 1958. “I started out helping my dad cut glass,” she said. “I played around the shop after school when I was a girl. I helped my mom and dad take customer’s orders. “I also answered the phones while my mom took a short break during the day. I learned so much about the glass business at a young age.” Matthews says her grandmother, Elizabeth and her brother, Antonio, also learned the business in a short amount of time. “We had a great year in 2015,” she said. “We did better this year than previous years. “The economy is showing some improvement and that is always a good thing. We are looking forward to 2016.” Alvin Glass & Mirrors specializes in residential and commercial glass repair and installation. What was it like growing up in Alvin, Brandi? Alvin was a great place to grow up. It was great to be a kid and play outside every day. I liked growing up in a small town. Where did you go to school? I attended and graduated from Alvin High School. After high school I continued to work at Alvin Glass & Mirrors.
What does a typical day look like for you these days? Every day, every phone call and every project is different. Sometimes the phone will ring off the hook and sometimes things are quiet around the shop. No day is ever the same. Do you ever go to jobsites? I have spent time at jobsites before, especially if the crew needs extra help that day. Over the years, I have helped install windows, glass and shower doors. I think gaining experience in the field helps me today especially when customers have questions about a project. Working in the field gave me a different outlook on things. What important lessons did your dad teach you that you continue to carry on today? My dad taught me to never pay for anything in credit. Always pay cash. He always said if you don’t have cash, you don’t need it and don’t buy it. This lesson has been helpful to me running the business but also in my personal life. How have you seen your industry change over the years? Technology has definitely improved since I was a teenager. Nowadays folks in the glass industry use computers for everything. We still like to do things the old fashioned way. We still write everything down on paper. We don’t rely on computers, unless we absolutely have to. Are you married? Yes, I got married to Otis Matthews in March. My mom introduced me to Otis and I am so glad she did! I have a son named Michael, 18. Like me, Michael’s first job was working here at Alvin Glass & Mirror. Will Michael continue to work at the company in the future? If that is what he chooses to do. I
Brandi Matthews cuts glass in the shop.
have never pressured him to make a decision. I have always told him if this is what he wants to do then to go for it. If not, I won’t be hurt by it. If he wants to pursue something else, that that is okay, too. Michael graduated high school so now he helps out at the company in the afternoons. Michael enjoys skate boarding in his free time. This is scary for me since it is a dangerous sport. What is the best part about working at Alvin Glass & Mirror? I really enjoy working with my family. It is challenging at times, but at the end of the day I wouldn’t trade it for anything. I love what I do today. My grandma used to cut glass in the shop but now she handles more office work. She comes and goes as she pleases. My brother Antonio is the lead installer. What advice would you give a young person interested in working in the glass business? My advice is to know what you are doing. You have to learn how to cut and measure glass. Gain lots of experience in the field. What are the keys to success in your industry? Stand behind your word. The customer may not always be right, so you have to learn how to dissipate situations. Know how to interact with customers. Always get your name out there. Word of mouth advertising is something we pride ourselves on. It is not something we take lightly. Why do you enjoy working in Alvin? Everybody knows everybody in Alvin. No matter where I am at in the world, no matter where I move or go, this will always feel like home to me. Have you traveled outside of Texas? Yes, when I was younger I traveled to Louisiana. On occasion, my family and I will take road trips to San Antonio, Austin or Dallas.
My husband helps operate asphalt plants. There are four plants in the Hill Country. Sometimes when he has work to do, I will go with him and we will stay an extra day to do something fun in the Hill Country. Where is a place you would love to visit one day? I would love to visit Panama City in the future. My dad was born in Mexico City and lived most of his life in Panama City. I think it would be awesome to see where he spent time as a young man in Panama City. He always talked about the beautiful landscape, beaches and the food fun. Panama City probably doesn’t look like anything it did back in the ‘70s, but I think it would be nice to explore for a few days. What are a few of your favorite hobbies when you aren’t at work? I have always wanted to try glass crafting such as making stained glass windows. A few of our guys here at the shop make glass shadow boxes. I made my husband a glass shadow box for his Dallas Cowboys helmet. Do you ever go to Galveston on the weekend? Yes, Galveston is only about 30 minutes away, so my family and I like to go whenever possible. We have been to Schlitterbahn in the summertime and recently saw the Festival of Lights at Moody Gardens. It is nice the island is convenient for us to drive to on the weekend. Do you like to go fishing? Yes, my husband and I like to go fishing in La Porte and Galveston every chance we get. What are your future plans for Alvin Glass & Mirror? We have operated at our current location in Alvin since 1984. We aren’t going anywhere any time soon! There is a lot of competition in the area that comes and goes. We always stay. –ab
Brandi enjoys working with her brother and main installer, Antonio.
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Houston Construction News • Jan 2016
Page 5
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That’s a wrap
Filling stockings
In December, Kirksey Architecture employees found and wrapped gifts for the Adopt an Angel program, ensuring more than 65 children had gifts to open this holiday season. –ab
McCarthy Houston team members came together in December to help make a difference for children by donating toys to Operation Stocking Stuffer, a toy drive for local underprivileged children. –ab
Submitted to Construction News
Submitted to Construction News
Going the distance
Spirit of Christmas
CDA Architects held a Christmas party at Topgolf Spring. The company incorporated in 1995 and has been in business since 1974. Ray Duerer, AIA, LEED AP, is the president. –ab
The Baker Triangle Houston office got into the holiday spirit in early December. –ab
Construction News ON LOCATION
Construction News ON LOCATION
Roofing it
Pedal to the metal
L-R: Danny, Bea and Steven, Roofing Supply Group, make things happen at the Webster location. –ab
Store manager Jake Bishop gets organized for the week ahead at Metal Mart in Alvin. The company provides steel roofing, trim, flashing, steel building components, structural steel and fasteners. –ab
Submitted to Construction News
Making progress
Dyad Constructors LP representatives attended a groundbreaking ceremony for Park Eight 90 buildings 1, 2 and 3 for developer Trammell Crow Companies in November. –ab
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Houston Construction News • Jan 2016
Business is a game! Play to win! Part 1 of a 3 part series Carrie D. Bradshaw, C.P.A. Brown, Graham & Company P.C. Georgetown, TX
Product Recall Insurance should be part of your Product Risk Management Plan
now your score Business is a game and your financial statements are your scoreboard. Do you know your score? Are you winning or losing the game? In order to answer this question, you must first understand the financial management of your company and the story your financial statements tell about your company. Consider your monthly balance sheet as the score at the end of a period; a quarterly balance is your score at the end of the game; and an annual balance is your score at the end of the season. You can make adjustments to the game plan during the quarter if you are paying attention during the game. When you get to the end of the game you will see if your strategic adjustments worked to win the game. If it worked, maintain that strategy for the next game. If it did not work, the strategy needs to be adjusted for the next game to have a winning season. In a nutshell, your balance sheet is Association (RMA), Construction composed of assets, liabilities and equity. Financial Managers Association’s annual Assets are what you own. Liabilities are survey, and many others. Compare the what you owe. Net worth is what is left ratios you calculated on your balance over. sheet to your peers and see how you measure up. Are you consistent with Ratio analysis – understanding your your peers? scoreboard A word of caution in using industry Financial managers use a benchmarking: You cannot be sure the methodology referred to as ratio analysis comparison is “apples to apples”. There is to understand the scoreboard. You are no standardization of information probably familiar with some of these submitted to the groups gathering this ratios as you have been in conversation information. You also do not know the with your bonding agent or banker. level of success of the companies When you evaluate your ratios related to submitting this information. We your balance sheet, consider the recommend finding industry publications following: that publish “Best in Class” benchmarks Current working capital: This ratio as well. The purpose of benchmarking is measures your solvency - the number of to identify potential targets at which to dollars in current assets for every $1 in aim. current liabilities. In other words, can you pay your bills today? Internal financial trends Debt-to-worth: This ratio measures Another important aspect of your financial risk - the number of dollars understanding your score is monitoring of debt owed for every dollar of net your internal performance over time. Is worth. In other words, does the bank your business seasonal? How does that own more of your company than you do? seasonality impact your score (and more Accounts receivable turnover: importantly your cash!)? Perform your Measures the rate at which accounts ratio analysis on a monthly, quarterly and receivable are collected on an annual annual basis to help you identify trends basis. How many days from the time an within your company. invoice is generated until it becomes a Part 2: Know your costs deposit in the bank? We will discuss a break-even analysis Accounts payable turnover: tool. Measures the rate at which accounts Part 3: Know your cash flow model payable are paid on an annual basis. Is every dollar of revenue created the How many days from the time an invoice same? is received until the bill is paid? By beginning to implement a Something to consider: Should you disciplined system of monitoring your be paying accounts payable at a slower score, you can develop the strategy to rate than you collect accounts receivable coach your team to greater success! to conserve cash? Maybe. That question Carrie D. Bradshaw, CPA and CCIFP will be addressed in part 3 of this series. with over 20 years of construction contractor coaching experience, is the Industry benchmarking Managing Shareholder of the Brown, Now that you understand your Graham & Company, P.C.’s Georgetown score, how do you measure up against office. You can contact Carrie at the competition? There are many sources cbradshaw@bgc-cpa.com or call 512-930for obtaining industry benchmarks: 4090. industry associations, Risk Management
Julie Davis, CIC IBTX San Antonio, TX There may be no word that strikes greater fear in the hearts of individuals in the manufacturing/processing industry than “recall.” Mere consideration of the term may mean that someone has been made ill or possibly died from consumption of or exposure to a product. The response must be inordinately fast and include coordination with federal government agencies, and state governmental agencies, as well as other companies who sit both upstream and downstream of your position in the distribution chain of the product at issue. The aftermath can leave injured consumers and damaged reputations. The monetary costs may include lost profits, recall expenses, civil damages and potential criminal action. Despite excellent quality control, you may find yourself swept into a recall. Advance planning for recalls can make the difference in the survival of your company. While a written recall plan has long different than another. been a regulatory requirement, planning Coverage details for a recall should include much more The following are key issues of the than a template form in a file. Recall policy, and policies may differ on the planning should include record-keeping definitions. Each policy must be carefully steps to be taken well in advance of any read and understood by policyholders to concerns, but which will make any recall insure they are purchasing what they effort more effective. A team of advisors need. who will serve in various roles in the • Loss of sales revenues planning, execution and post-recall • Customer loss of gross profits process is also a necessity. It should also • Government recall include Product Recall insurance • Voluntary recall coverage. • Adverse publicity Cost of Recall • Rehabilitation expenses The next step to consider after • Extra expense internal procedures are consistently • Defense costs implemented is how much will this cost • 3rd Party coverage the company? Loss of sales, not only the • “Pay on behalf” or reimburse company’s lost profit, but that of your language customers should be considered. Also Depending on who you speak with, consider the damage to the company’s the chance of having a serious product reputation and possible effect on future recall occurrence is not a matter of if, but sales, the added expense for disposal, when. Serious consideration of a proper replacement product, time and mental game plan in the event could be crucial anguish by management and employees; for the company’s survival. Is this a cost these are all part of the cost. that the company can absorb or is it more Many companies look at funding this cost effective to purchase an insurance possible exposure with an insurance policy for the risk? Recently, many large policy, but in today’s market, most distributors and retail corporations are Commercial General Liability (CGL) requiring Product Recall/Contamination policies will not cover a loss in a Product coverage in their contracts. In any event, Recall scenario. Do not mistake Product as part of your company’s recall Liability coverage for Product Recall procedure, add an insurance policy coverage, they are not the same. Some review by a competent insurance insurance carriers may offer a sub-limit to professional and review all contracts with cover the expense of removal and suppliers and clients regarding the disposal of the product as part of the insurance expectations. CGL, but these amounts may only cover a Julie Davis, CIC has worked with the fraction of total cost. food processing industry for over 15 years, Product Recall/Contamination coordinating risk management plans and Insurance insurance policies to reflect the food There are insurance carriers that industries’ changes to new exposure and have policies that pertain specifically to heightened responsibility. IBTX understands the issue of product recall, contamination your potential risk exposure and stands and/or tampering. These stand-alone ready to help you make informed decision policies may also include crisis about how to protect your customers, your management consultants. Product supply chain, and your bottom line. Contact Recall/Contamination policies are not us at 800-880-6689 or visit us at www.ib-tx. standardized policies, so one insurance com for more information or to setup your company’s coverage may look drastically policy today.
Submitted to Construction News
Submitted to Construction News
Home cookin’
Starting mission
PBK Houston team members served Thanksgiving Dinner at Bo's Place in late November. Bo’s Place is a non-profit organization offering grief support services for children and their families who have experienced the death of a parent or sibling. –ab
General contractor Mission Constructors LP is building a new 30,000-sf Crime Stoppers Headquarters in Midtown. A groundbreaking ceremony took place Oct. 30. Merriman Holt Powell Architects is the architect. –ab
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Houston Construction News • Jan 2016
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Texas Mechanic’s and Materialman’s Liens on private projects in Texas Janet Townsley, Senior Associate The Cromeens Law Firm Dallas, TX
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redit is the lifeblood of the construction industry. By the nature of a construction contract, the contractor extends credit to the owner to the extent the contractor performs labor or services and supplies materials before being paid. When construction funds are withheld, the impact is felt throughout the construction chain. On even a small project, a payment default by an owner can have disastrous consequences for dozens of contractors, subcontractors and suppliers (and their employees). Just as most lenders will not loan money without adequate security for payment, contractors, subcontractors and suppliers need security when they extend credit on a construction project. Such security is the right to secure and enforce a lien on real property for the value of work performed. Mechanic’s and Materialman’s Liens (M & M Liens), when executed properly, elevate a subcontractor or material supplier from an unsecured creditor to a secured creditor. 1 Because the M&M lien operates like an involuntary mortgage on the, Texas law requires specific steps to create a valid lien. One misstep in complying with strict notice deadlines or omission of a sentence required in the notice letter, invalidates the M & M Lien. Anyone who provides labor or supplies materials for the construction, repair of a house, building or improvement is entitled to an M& M lien. After recent changes in Texas law, architects, engineers, surveyors, landscapers, demolition trades that provide temporary workers may have an M&M lien when not paid. The Homestead Pitfall One of the great things about Texas is the protection of homesteads found in Article 16, §50 of our Texas Constitution. This means you cannot have a lien against a property unless there is a construction contract signed and notarized by the homeowner(s) and filed in the real property records prior to any work. Typically, this means you cannot file a lien for a small repair. This is because it is unlikely a contract has been filed of record unless you filed one. But, if you’re doing a large repair or remodel, it would be worth the investment to hire an attorney to draft and file the contract to ensure you will be protected! A homestead is regarded as a residence owned by an individual that is being OCCUPIED by that individual. A person and spouse may have only one homestead. Hence, an owner building a residence while currently living in a homestead, cannot call the new residence a homestead. However, if the individual does not currently have a homestead and is building a new residence intended as a homestead, the new residence is considered a homestead
although the individual does not live in it.2 Notice, Notice, Notice M&M liens are an involuntary lien against someone’s property and although you may not have a contract with the owner, you may have the right to lien the owner’s property. To perfect a lien, certain notices must be sent prior to filing the lien. This gives the owner and general contractor a chance to resolve your claim prior to filing the lien. All notices must be sent Certified Mail Return Receipt Requested to comply with statutory notice timelines. These timelines are strictly enforced and missing a timeline date even by one day, invalidates the lien. Therefore, do not let anyone stall or push you past outside your deadlines. The notice timelines differ between a commercial and residential project, and on whether you have a contract with the General Contractor. Thus, it is good practice to calendar a deadline for sending notice of unpaid invoices for the 15th day of the second month after the labor was performed or materials supplied, as in many instances, this is the first deadline you will have to meet. An attorney should be consulted to address deadline and notice requirements in specific instances. Janet Townsley is a Senior Associate at The Cromeens Law Firm. For more information on our services, please visit www.thecromeenslawfirm.com or call (713) 715-7334.
Electrical Lock Out and Tag Out Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX
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nergy sources including electrical, mechanical, hydraulic, pneumatic, chemical, thermal, or other sources in machines and equipment can be hazardous to workers. During the servicing and maintenance of machines and equipment, the unexpected startup or release of stored energy can result in serious injury or death to workers. Failure to control hazardous energy accounts for nearly 10 percent of the serious accidents in many industries. Proper lockout/tagout (LOTO) practices and procedures safeguard workers from hazardous energy releases. The OSHA standard for The Control of Hazardous Energy (Lockout/Tagout) (29 CFR 1910.147) for general industry outlines measures for controlling different types of hazardous energy. The LOTO standard establishes the employer’s responsibility to protect workers from hazardous energy. Employers are also required to train each worker to ensure that they know, understand, and are able to follow the applicable provisions of the hazardous energy control procedures:
All employees who work in an area where energy control procedure(s) are utilized need to be instructed in the purpose and use of the energy control procedure(s), especially prohibition against attempting to restart or reenergize machines or other equipment that are locked or tagged out.
Proper lockout/tagout (LOTO) practices and procedures safeguard workers from the release of hazardous energy. The OSHA standard for The Control of Hazardous Energy (Lockout/Tagout) (29 CFR 1910.147) for general industry, outlines specific action and procedures for addressing and controlling hazardous energy during servicing and maintenance of machines and equipment. Employers are also required to train each worker to ensure that they know, understand, and are able to follow the applicable provisions of the hazardous energy control procedures. Workers must be trained in the purpose and function of the energy control program and have the knowledge and skills required for the safe application, usage and removal of the energy control devices.
Specific procedures and limitations relating to tagout systems where they are allowed.
● All employees who are authorized to lockout machines or equipment and perform the service and maintenance operations need to be trained in recognition of applicable hazardous energy sources in the workplace, the type and magnitude of energy found in the workplace, and the means and methods of isolating and/ or controlling the energy.
Retraining of all employees to maintain proficiency or introduce new or changed control methods. The control of hazardous energy is also addressed in a number of other OSHA standards, including Safety and Health Regulations for Construction; Electrical (1926 Subpart K), Concrete and Masonry Construction (1926 Subpart Q), Electric Power Transmission and Distribution (1926 Subpart V), and General Industry; Electrical (1910 Subpart S), Special Industries (1910 Subpart R), and Electric Power Generation, Transmission and Distribution (1910.269). natarajan.joann@dol.gov 512-374-0271 x232
Public property is not subject to lien, and is beyond the scope of this article. 2 A spec home is one owned and being built by a company. It is not a homestead and is considered commercial conconstruction. 1
Construction News ON LOCATION Submitted to Construction News
On the move
Field trip
Satterfield & Pontikes Construction hosted students from the Texas A&M Department of Construction Science at the Houston office in December. Students had a question and answer session with president and CEO George A. Pontikes and toured the new Cypress Park High School project. –ab
Sergio Macias, EMCO Air Conditioning & Heating Inc., stops by the office before he heads to a commercial HVAC installation job in South Houston. –ab
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Houston Construction News • Jan 2016
Construction News ON LOCATION
Construction News ON LOCATION
Grand plans
Electric avenue
Store manager Craig Smith helps electrical contractors find the right supplies at City Electric Supply in Pasadena. –ab L-R: Chris Granados, Cody Worthen, James Boyd, Tracey Chauvin and Matt Born, 84 Lumber, look forward to 2016. –ab
Submitted to Construction News
Deck the halls
As with gladness
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ocal mechanical contractors gathered at the Mechanical Contractors Association (MCA) of Houston Christmas party at the Houston Engineering & Scientific Society Dec. 16. MCA presented a donation to The Nehemiah Center “Christmas Angels” program. The program provides families with the amenities typical of a normal Christmas, while keeping in mind the pressing needs of the families. MCA also announced its officers and board of directors for 2016. –ab Officers: President: Ronald Dauzat, CFI Mechanical Inc. Vice President: James N. Letsos, III, The Letsos Co. Treasurer: Douglas Gregory, Gregory-Edwards Inc. Directors: Paul Alexander, Straus Systems Inc.; James R. “Jimmy” Graves, Graco Mechanical Inc.; Rusty Minchew, The MLN Co. and Brent Watts, Dynamic Systems Inc.
Associated Builders and Contractors (ABC) Houston Chapter members enjoyed networking, food and fun at a Christmas party held at Nouveau Art Bar Dec. 8. –ab
Growing together Glenn Rex (right) presents the MCA members contributions to Tonia Labbe, The Nehemial Center.
L-R: Rusty, Dusty, Mary and Colby Stafford
L-R: Doug Gregory, Gregory-Edwards Inc.; June Johnstom, Travis Brothers Building Automation; Ronald Dauzat, CFI Mechanical, Tonia Labbe, Nehemiah Center; James N. Letsos, III, The Letsos Co. and Cynthia Birdwell, Andrews Myers LLC and Glenn Rex, MCA
New Year, new leaders
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he Women Contractors Association (WCA) inducted the 2016 Board of Directors in November. –ab
President: Natalie Tobias, Jimerson Underground Inc. Immediate Past President: Heather Kelly, Dominion Air & Heat Treasurer: Sherri R. Scheffer, CPA, CGMA, Sandersen Knox & Co. LLP Secretary: Donna Murillo, The Murillo Co.
Directors: Sandra Janak, Aspire Sales & Electrical Services; Carol Keough, Barita & Keough Law Firm; Dana Parker, Copy Source 1; Becky Khan, Highpoint Insurance Group; Sadie Rucker, Horizon International Group; Lenora Sorola-Pohlman, Navarro Insurance Group; Cheryl Toler, Travelers Bond; Stacey Williams; Helen Hodges, Separation Systems Consultants Inc. and Frankie Snead, Snead Site Inc.
Rusty Stafford started Stafford Services as a one-man operation in 1969. As the business grew, he hired a crew to help him with new installations, service and repair work. In 1979, Rusty met his wife Mary and she became his office manager. Today, their sons Dusty and Colby help out at the family business. “I remember the early days were slow so we did a lot of non-air conditioning and heating related jobs just to pay the bills,” Rusty Stafford said. “This year will be the best year we have ever had. Our two sons are taking more and more responsibility for the company and are determined to keep growing our customer base.” When asked about the keys to success, Stafford says you have to be honest, prompt and flexible. “You have to be willing to work 24/7
year round,” he said. “We are just a mom and pop, two sons and an install crew, so for us spending time at our ranch in Navasota during the slow season is our way of celebrating going through another summer of long hours and lots of stress.” On the side, the Stafford family enjoys fishing, hunting, golf and generally just spending time outdoors doing anything or nothing at all. “Our future goals are to keep striving to maintain Ruud Top Contractor status and to see the continuation of the next generation of our customers as we have in the past,” Stafford said. “We enjoy working in the air conditioning and heating industry. Solving problems (especially the head scratching ones) and customer relationships are extremely rewarding.” Stafford Services is a full-service heating and air conditioning company. –ab
Houston Construction News • Jan 2016
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the staff at Waypoint Marine in Corpus Christi. I’ve known owners Jim and Jared Poole for many years now. I also know many of the pro-staff and guides that they have established relationships with them throughout the years, and really look forward to a long working relationship with them and the entire staff at Waypoint Marine. They are a full service marine dealership that services all of the major brand outboards and have an array of new and used boats to choose from. Stop by and see them at 3033 S.P.I.D. in Corpus for all your marine needs.
New changes for a New Year
For the past several weeks I have been in a hunting mode, traveling all over South and West Texas hunting and guiding white tail and mule deer hunts. I must say it’s been a good break from the salt life I live on the water. There is something about the South Texas brush country, the mountains in West Texas and the serenity of the Laguna Madre that make my job so enjoyable. I can’t think of anything else that I would enjoy doing.
by Capt. Steve Schultz Sponsored by: Waypoint Marine, Majek Boats, E-Z Bel Construction, Power Pole Shallow Water Anchor, Aggregate Haulers, ForEverlast Hunting and Fishing Products and Columbia Sportswear.
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ell I can’t tell you how excited I am to announce the changes that are in store for the 2016 season for Steve Schultz Outdoors. For those of you that have fished with me in the past five years, you already know that the Majek Xtreme is the boat that got us to and from our fishing spots in comfort and style. I consider the 25-ft. Xtreme the best hull on the water for the everyday guide and recreational angler. One change that most people will notice immediately will be the new Evinrude ETEC G2 300hp outboard on the back of my 2016 Majek. Evinrude has stepped up their game recently on the introduction of the E-TEC G2 and I have spoken with several guides that have run the out-
Fishing remains good in the Laguna Madre/Baffin Bay complex. Both trout and redfish are still being caught on live shrimp and lures along the King Ranch shoreline and rocks of Baffin Bay. Best bet this time of year is still wade fishing with artificial lures. David Wyatt shows off his 26-inch redfish caught on live shrimp under a popping cork with Steve Schultz Outdoors.
board, and they are extremely happy with the performance, fuel efficiency and speed not to mention the savings of maintenance. Here is a statement from Evinrude: “The new Evinrude E-TEC G2 isn’t just built to last. It’s built to outlast. Run it right out of the box for 500 hours with no dealer scheduled maintenance. Less time in the shop means lower ownership cost, less hassle and much, much
Submitted to Construction News
Submitted to Construction News
Art of fishing
Fishing with family
more value over the lifetime of your engine.” Along with the change of the new Evinrude E-TEC G2 will be the new relationship I look forward to being a part of with
I have already started to fill the calendar for the upcoming 2016 season. Don’t wait until all the good dates are gone! To schedule your next bay fishing trip give Capt. Steve Schultz a call at 361-813-3716 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 www.baffinbaycharters.com steveschultzoutdoors@gmail.com U.S. Coast Guard & Texas Parks and Wildlife Licensed
David Chapman, AC Plumbing Supply, says the bass were biting on Lake Sam Rayburn. –ab
The Randerman boys of Morrison Supply caught a nice stringer at Hackberry in Louisiana. –ab
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Houston Construction News • Jan 2016
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
Fishing Calendar of Events!
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he water has finally made it back to our lake and several others! For the first time in years we get to look forward to all the fishing and catching the New Year will bring. Last year we were trying to clean and clear up the scary wild lake bed to protect ourselves from wildfires, rattlesnakes and cactus. This year its all about the fish! Just in case you have forgotten what our lakes have to offer, or are new to the area of a recently returning lake, here is an idea of what you can expect. In the Spring the catfish are loving the cold water. If you want a trophy cat, now is the time. White bass are running up the rivers to spawn again. For several years this hasn’t been possible, but now they are back, and catching them is a lot like eating popcorn. Their big cousins the stripers also can be found upriver trying to spawn. Look for crappie to be moving up river in their pre-spawn pattern. Warm, sunny afternoons draw them up into shallow murky water around brush and trees because this water
warms up first. As spring warms into summer, smaller catfish become easier to find in shallow water. White bass begin moving back down the river channel after spawning and all they want to do is chase shad and eat anything they can catch. Stripers are moving back down stream forming big schools of fish that form feeding frenzies that anglers dream of in early to mid
summer. Once it gets hot they begin to slip into deeper cooler water, but still like to feed on top on cool mornings. Crappie go back to being their elusive selves once it warms up. I have always thought that is why we consider them so delicious, they can play hard to get. A good crappie guide can still get you on them though. Fall comes in with a mix of blazing leftover summer heat and the promise of
cooler weather. Catching catfish is still steady over baited holes and will come in to chum. The white bass begin to migrate upstream again. Stripers can be slow when it’s still hot because they find our water temperatures in Texas to be excessive. Once the shorter days and cooler nights start to cool off the water, they turn back on and feed like crazy because they don’t feed much in the heat. You will catch a lot of smaller stripers, lots of action. Larger stripers begin their swim upstream. Winter sees all the fish staging for next year, heading upstream to spawn. We get some really nice fishing days mixed in with the winter chill. It’s worth checking out if only to take a break from hunting and get out of the house. I think we are in for exciting times on the water in these returning lakes. We have lots of new trees and vegetation improving our fisheries now, plus there are plenty of fish out there that haven’t been exposed to human fishing pressure or as long as five years in some places. That means they have had plenty of time to get big and bold. I can’t wait! Let’s Go!
Submitted to Construction News
Submitted to Construction News
Into the wilderness
Thumbs up
CEO Jay Carlton, Sterling Structures Inc., went elk hunting in Des Moines, NM this fall. –ab
Half or Full Day Fishing Trips
Doug Desilvio, Texas Moisture Protection Co., celebrates a successful pheasant hunt in Corsicana this fall. –ab
All Bait, Tackle & Equipment Furnished Your catch Filleted and Bagged for You
Ken Milam Guide Service (325) 379-2051 www.striperfever.com
Furnish your TPWD Fishing License & Refreshments, and WE DO THE REST!
Have an outdoor photo you’d like to share? Send to: HoustonEditor@Constructionnews.net or call Abby at 832-595-0091
Houston Construction News • Jan 2016
Page 11
Submitted to Construction News
Submitted to Construction News
First time’s a charm
Reeling in the big ones
ales manager Joe Lacy, Diamond Hydraulics Inc., and his son, Hudson, 8, enjoyed hunting and fishing together in 2015. Lacy says he shot an 11-pt. deer this fall. His son, Hudson, shot his very first 8-pt. deer and caught a 1.5-lb. catfish. “Hudson also went on his first official dove hunt and shot four dove,” Lacy said. “He’s growing up to be a great outdoorsman!” –ab
James Chapman, Regency Plumbing, caught a bass on Lake Sam Rayburn and his co-worker, Steve Profaizer, Regency Plumbing, caught a nice trout at Matagorda. –ab
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Joe Lacy
James Chapman
Steve Profaizer
Submitted to Construction News
By the bay
Hudson Lacy with his 8-point buck.
Hudson Lacy goes fishing
Submitted to Construction News
First shark Justin Thompson, Meyerland Glass and Mirror, loves spending time fishing in Brazoria County. Shown here with a nice red he caught. –ab
Luke, son of Andrew Hoggatt, Hoggatt LP, was excited to catch a shark in Freeport. –ab
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Houston Construction News • Jan 2016
Ho Ho Ho
Joy ride
L-R: Back row: Dave Gillam, Tim DeBord, Paul Kummer and Doug Timmermeyer. Front row: Elizabeth Ferrer, Vicky Kummer and Amber Timmermeyer, JE Dunn Construction KBR employees with CEO Stuart Bradie and Santa Claus
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anta and his Houston Fire Department elves visited KBR Inc. in mid-December to pick up more than 4,000 toys donated by KBR employees to the Operation Stocking Stuffer toy drive. KBR is a global technology, engineering, procurement and construction company. –ab
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mployees and families from JE Dunn Construction joined approximately 800 other volunteers to help build 10,000 bikes for CYCLE at NRG Center.
CYCLE is a children’s charity that rewards students with new bicycles for achieving better academic performance in the classroom. –ab
Santa and some KBR elves
in
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Houston Construction News • Jan 2016
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If you could give anything to your best friend, what would it be? A decorative metal ceiling! Glenn Eldridge helsea Decorative Metal Co.
Fa la la la la
to Europe. Daniel Baez, Baez Electrical Services
I’d give my best friend a ticket to go to a motocross race with me. Freddy Torres, AC Tower
Time! That is the best thing I could give my wife and best friend, Jennifer. Pino Zannone, Pino’s Electromechancial
I’d design and build my best friend custom cabinets. Steve Procter Procter Custom Woodworking
I’d give my best friend a chance to go deer hunting with me. Justin Blackmon Bluestone Contracting
A plane ticket to New Mexico to go hunting with me! James Pernell Davis Advanced Concrete Designs Inc.
I love woodworking when I am not at work, so I’d make my best friend a wooden vase or bowl. Michael Stall, Managed Response Inc.
I’d buy my wife a plane ticket to Europe so we could see London and Spain together. She has always wanted to travel
A nice weekend where we could go fishing at Lake Livingston. Jerry Ince, Ince Engineering
The JLA Engineering staff
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he LJA Engineering Inc. employees shared laughs and showed off their Christmas sweaters at an ugly sweater party held at the Houston office in December. Attendees had pizza for lunch. –ab
Submitted to Construction News
Warmest wishes
Hannah Juracek
Rebecca Puente
Construction low down
URETEK ICR Gulf Coast hosted a Christmas party at Black’s Market Table in northwest Houston in December. The company provides polyurethane foundation repair, commercial concrete lifting, infrastructure repair and soil stabilization solutions. –ab
Season greetings
NAWIC members and guests
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adies in the Houston construction industry networked at a holiday social at the 024 Grille in Memorial City
L-R: Back row: Jacky Martens, Mid-West Steel Building, 2nd Row: Kate Grix, Otis and Terry Nesch, Joseph Chris Partners, 3rd Row: Pamela Washington, Bechtel Corp and Laurie Jimenez, Rand Group
Dec 5. The National Association of Women in Construction (NAWIC) Houston Chapter held the event. –ab
Guests enjoy dinner with friends in the industry.
Some of Booker T. Washington High School’s students and staff at the Introduction to Construction event.
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ooker T. Washington High School students learned about career opportunities during the Introduction to Construction event presented by Marek Brothers in November. “In order to continue to educate the future of the workforce, we partner with school districts to promote workforce development and careers within the construction industry,” said Shannon Zweifel, learning and technology partner at Marek. Zweifel says a partnership was recently developed with Booker T. Washington High School and the Architecture and Construction Academy, led by Jeremy Huckeba. “Teachers and leadership staff alike participated in an externship,” Zweifel said. “Staff members were offered insight into the construction industry by speaking with project managers and estimators.” Students learned about topics such as careers, special tools, safety and building information modeling. Marek Brothers provides residential and commercial interior construction, dry-
A student tries on a hard hat.
wall and insulation services. The company was founded in 1938 and has locations in Texas, Atlanta and Oklahoma. –ab
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Houston Construction News • Jan 2016
Holiday cheer
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Making a differance
L-R: Martin Vila, Nabil Ghannam and Paul Lampe
appasitos in Sugar Land was the place to be Dec. 5 for the Raba Kistner Inc. Houston office Christmas party. All the employees who attended the party work in geotechnical engineering/ testing and construction materials engineering/testing. Raba Kistner is an engineering consulting firm with offices in Texas, Utah and Mexico. –ab
L-R: Sia Pourfazli and Hamid Badkoobeh
The ACE Mentor Houston Build It Forward group
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L-R: Brandon Flores and Jorge Lopez
he 4th Annual ACE Mentor Houston Build It Forward took place at the Marek Brothers Systems Inc. office Nov. 21. The event brought together students involved in the ACE Mentor Program and industry-wide professionals to build storage benches that were delivered to area charitable organizations throughout Houston and the surrounding areas. “The intent of the fundraiser is to have the students understand that they have the ability to give back to others simply by using their hands,” said Angela Cotie, ACE Mentor Houston chairman. “I am not certain of another fundraiser that gives back to so many, and sends kids to college.” Participating and sponsoring com-
panies included: Gensler, Gilbane Building Company, Pinnacle Structural Engineers, Walter P Moore, Arch-Con, Golden West, Benchmark, FSG Electric, HOAR Construction, HOK, I.A.Naman & Associates, LBJ Inc., EEReed, American Marble, Chamberlin Roofing & Waterproofing, Kenmor Electric, Lakey Electric Inc., Milam & Co. Painting Inc., Ward, Gerz & Associates LLP, Wiss, Janney, Elstner Associates Inc., Kirksey Architecture, Terracon and Marek Brothers Systems. ACE Mentor Houston brings the construction industry, educational institutions and local community together to expose high school students to the world of architecture, construction, engineering and the building trades. –ab
Construction News ON LOCATION
Feeling festive
Submitted to Construction News
Jingle all the way The National Electrical Contractors Association (NECA) Southeast Chapter hosted an annual meeting and Christmas Party at San Luis Resort in Galveston Dec. 5. –ab
Branch administrative services assistant Haley Schott, ABC Supply Co. Inc., is ready for the holiday season. –ab
Construction News JOB SIGHT
Construction News ON LOCATION
Getting things done
Set in concrete
The Mario’s Concrete Pumping crew pours concrete at the Walmart project on FM 518. Emerson Construction is the GC. –ab
L-R: Owner Christy McCoy and Stacey Orlando have a good day at Marble & Granite Designs. The Alvin-based company has operated for 14 years. –ab
Houston Construction News • Jan 2016
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Construction Forecast Construction Outlook: Sweet (and Sour) ‘16 Ken Simonson, AGC of America
Chief
Economist
Arlington, VA™
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exas contractors are facing a varied landscape in 2016. Overall, the outlook is favorable, but the slump in oil and gas drilling will be a major drag. The state continues to benefit from one of the highest population growth rates in the nation. That keeps demand high for both single - and multifamily housing, schools, stores and many other categories of construction. The U.S. Census Bureau reported in March, “Two Texas metro areas -- Houston-The Woodlands-Sugar Land and Dallas-Fort Worth-Arlington -- were the only ones in the country to add more than 100,000 residents over the 2013-2014 period. Within the Houston metro area, Harris County alone gained almost 89,000 people, more than any other county in the nation. The Lone Star State also had four metro areas among the nation's 20 fastest growing by rate of change: Austin-Round Rock (third), Odessa (fourth), Midland (ninth) and Houston (11th).” For 2016, population growth is likely to remain especially strong around Dallas, as three major national firms relocate thousands of employees to new office space there: Toyota and Liberty Mutual in Plano, and State Farm in Richardson. Even in areas of the state where population growth is slowing, there will be a lot of school construction to accommodate recent inflows of students. The planning for an expanded Pana-
ma Canal, currently expected to open sometime in 2016, has already triggered billions of dollars of investment in ports, pipelines and other transportation infrastructure, natural gas liquefaction plants, and storage and distribution facilities. More such investments will occur in the coming year. In contrast, railroads are expected to cut back on construction, after years of investing in new track and yards to serve ports and to haul crude oil from drilling areas without enough pipeline capacity to refineries and terminals. Low natural gas prices may encourage construction of more petrochemical plants and gas-fired power plants. But those same prices will hold down drilling, related service and materials supply businesses, and investment in wind and solar generation—all of which had contributed to construction in Texas in recent years. With the enactment in early December of a five-year federal highway and transit funding bill, Texas and other states will see a slight boost in federal dollars for transportation infrastructure. State funds also will be more abundant for highways and universities. Healthcare spending has picked up nationally in 2015 after lagging ever since the 2008-09 recession. Compared with
Interest rates up, labor down for 2016 Shane Hesters, North Texas Division Manager Yates Construction Fort Worth, TX
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hat is your opinion about the current state of the Dallas/Fort Worth construction industry? By all accounts, the Dallas/Fort Worth construction industry is currently one of the hottest markets in the country. When assessing the viability of a certain geographic location, Yates Construction takes into consideration labor resources, commodities, equipment inventories and the level of state and local economic development initiatives. With D/FW’s business-friendly environment, along with an attractive cost of doing business and cost of living, all four of these indicators are particularly strong right now. On the heels of the U.S. Federal Reserve recently raising interest rates, D/FW could see a burst of home sales with that market expected to reach $24 billion by 2015 year-end, which would be a record for the region and spur development in additional sectors that further impact and benefit our local construction industry. What markets do you expect your company and industry to see an in-
crease in over the course of 2016? Why? D/FW is a dynamic market, and one of the few in the country where multiple sectors are all seeing concurrent and consistent growth. Yates’ diverse portfolio includes public, manufacturing, athletic facilities, office and mixed-use projects and one of our targets in 2016 and beyond is to leverage our people and experience to establish a solid backlog of private commercial construction projects in North Texas. A primary strength of Yates’ is our passion for and expertise in building high-rise condominiums and with D/FW experiencing the biggest high-rise condo boom since the 1980s, we foresee this being one of our busiest markets next year. As one of ENR’s topranked multi-unit residential contractors in the nation, Yates is uniquely qualified to help owners deliver an entire spectrum of styles and prices to their highrise condo customers. What do you foresee as the biggest challenge your company and others like it in the industry will face in 2016?
earlier periods, fewer patients are being admitted overnight to a hospital, and they are staying for fewer days. Consequently, hospitals are building more emergency, diagnostic and treatment rooms, and fewer recovery rooms. A larger share of healthcare construction spending is going into standalone urgent-care facilities, outpatient surgical centers and clinics in stores and shopping centers. These trends appear likely to continue in 2016 in Texas as elsewhere. Construction downshifted in Texas in 2015 while accelerating nationally. From November 2014 to November 2015, U.S. contractors increased their employee count by 4.2%, whereas construction job growth in Texas slowed to 1.6% from a 7.7% growth rate a year earlier. In the latest 12 months, the state tied for 36th out of 50 states and the District of Columbia. For 2016, national construction employment and spending growth should continue, albeit slightly less robustly than in 2015. Texas also will add construction activity, but the growth will vary widely by region and sector, with the totals again falling short of the nation. In the Austin-Round Rock metro area, construction employment grew by 5% from November 2014 to November 2015. That rate outpaced the state and the nation but was less robust than the 8% increase a year earlier. (Data for Austin and most other metro areas includes mining and logging with construction.) Thanks to population growth, tourism, government and university spending, construction in the capital area should continue to outperform the state as a whole in 2016. In the Dallas-Fort Worth-Arlington metro area, construction employment has plummeted from some of the highest growth in the nation—a gain of
11,500 jobs between November 2013 and November 2014—to among the largest declines—a loss of 2,800 jobs between November 2014 and November 2015. (Because the data actually combine mining and logging with construction, the gains and losses to construction employment alone are probably overstated.) In 2016, Dallas and its immediate suburbs are likely to experience moderate-to-strong construction growth but construction around Fort Worth will be dragged down by oil-industry woes. In the Houston-The Woodlands-Sugar Land metro area, construction employment growth slowed dramatically in the past year, from 16,600 jobs added between November 2013 and November 2014 to 4,000 in the following 12 months. Continuing population growth, expanded school construction and the windup of some office and industrial projects may keep construction from losing jobs overall in 2016, but further expansion is unlikely for the time being. Construction activity expanded sharply in the San Antonio-New Braunfels metro area in 2015. Construction employment jumped by 10% from November 2014 to November 2015, more than double the national rate or the local rate a year earlier. In 2016, growth is likely to continue but at a more subdued pace. Construction activity was mixed in South Texas in 2015. Year-over-year employment growth had matched or exceeded the national average through early 2015 in the McAllen-Edinburg-Mission metro area but stalled beginning in April. Employment has been nearly flat in the Brownsville-Harlingen area after slipping throughout 2014 and 2015. (Data for these and most other metro areas includes mining and logging with construction.) In 2016, both areas are likely to record small increases in construction.
There are myriad challenges facing the construction industry, but the shortage of skilled workers probably looms largest. Carpenters, sheet metal installers, brick layers and concrete workers are in especially short supply, but the industry is also challenged with filling salaried positions such as project managers, estimators and engineers. The unfortunate fact is that too few students are being exposed to construction careers or provided with the basic skills needed to prepare for such a career path. To address this issue, construction companies can increase funding for career and technical education, work with educators to help establish construction academy charter schools and expand partnerships between apprenticeship programs and community colleges. Because Yates’ primary asset is our people, we continue to place a premium on recruiting, training and retaining top-ofclass performers that share our mission, which is to provide value to our clients, and our core values, which are safety, integrity, passion and commitment.
lus Rift at the forefront. The Rift is a virtual reality head-mounted display headset with integrated headphones that provide a 3-D audio effect allowing the entire project team to virtually walk through the buildings they have just designed. With our custom programming and software optimization, Yates can create an incredible visual fidelity and an immersive field of view that helps our clients visualize and spatially coordinate their projects.
What do you think will be different for your company and the industry in 2016 compared to the previous year? Are there any trends that are generating buzz? Yates continues to experience steady and impressive growth in Texas. In fact, we catapulted 19 spots from #32 in 2014 up to #13 in 2015 in ENR Texas and Louisiana’s “Top Contractor” rankings. Our portfolio diversity, combined with our depth of talent, has allowed us to stay active in multiple markets. In 2016, Yates will continue to expand our focus on technology, with Ocu-
How would you sum up the last five years for business at Yates, and what do you predict for the next five years? The past five years have been very busy and productive for Yates, both in Texas and nationally. We successfully navigated the recession and actually grew our team of people and project portfolio in Texas. Our offices in D/FW, San Antonio and Houston are all in expansion mode. Long term, our Vision 2020 (known as 10x20) identifies 10 areas of excellence to focus on over the next five years with specific metrics in each area to measure our progress during this time frame, including safety, portfolio diversity, customer satisfaction, performance, training, innovation, community involvement, culture, teamwork and sustainability. Each area has a corporate champion to lead our efforts, but it takes everyone’s full support to succeed. 10x20 exemplifies Yates’ continued commitment to improvement and excellence as we prepare for the future. Founded in 1964, family-owned Yates Construction provides a wide range of construction and building services. –mjm
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Houston Construction News • Jan 2016
Construction Forecast Quality craftsmen in demand for 2016
In your opinion, what will be the challenges in the next year? Craftsmen will be our greatest challenge. The availability of qualified workers on-site will affect the overall schedule and quality of the projects we are constructing.
Roger Berry, President SLCH SpawGlass Construction Corp. Houston, TX
What is your projection for the Houston construction industry for 2016? I think the construction market will be good in 2016, but not as robust as the past two years. In my opinion, the medical and higher education markets should be leaders in the industry for the upcoming year.
What do you think will be the keys to success for 2016? As always, find the right project that fits your current team’s strengths and ability to perform, including sufficient tradesman required to meet the project schedule.
Lending small business owners a hand
San Antonio, TX
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art of Debra Ruiz’s job at Wells Fargo is to assist the small business owner by working with them on loans to purchase or build a space for their operations. These small business owners are the clients of the construction companies and contractors who build or renovate those spaces. So, we asked her what she sees in the construction loan forecast for small business borrowers in 2016.
What do you expect will be the biggest changes to construction lending in 2016? On my desk and what I have seen approved in our Texas market, are more and more ground up construction projects. We have a lot of land in Texas, so building and owning your own building is key. With the year’s end wrapping up and winding down, I already have approxi-
Is it a good time to build? I think it is a good time to build as a private owner, financing is favorable.
be purchased quickly with cash by a seller versus waiting on financing.
Debra Ruiz, Vice President - Construction Loan Manager Wells Fargo
What does your position as construction loan manager of the SBA Lending Group in San Antonio entail? I manage and oversee an SBA portfolio of close to $40 million in construction-related loan volume. While overseeing this portfolio, I am maintaining excellent customer service to both my internal and external clients of Wells Fargo Bank. I have the entire State of Texas under my management. My specialty is in Small Business Administration, working with various general contractors, architects and the small business borrower on a day-to-day basis. We like to say that we are making dreams come true in the small business world.
What is your projection concerning the cost/and or supply of materials? I believe that certain materials will reduce in price based on the commodity markets. However concrete will probably be steady based on future demand.
Do you expect any increases or decreases in business or interest rates? They have been stable. I do not think they will go up. You hear about it from the Fed, but nothing has happened. I think since we are in an election season, that will come down the road. Lenders are being very aggressive and competitive in rates to secure deals. So, it is the time for a small business to request a loan, if they plan to expand, purchase a building or build a new building for their small business.
mately $20 million in approved loan volume, all awaiting on their architects’ plans, zoning, replatting, permits, and just construction bids from their selected general contractor. These are already in the closing group and just waiting. This does not account for the new loans being approved [in December], and this is just the one month forecast in January 2016. I forecast we are just going to get busier in the construction industry in 2016. With that said, I foresee an increase in construction material and costs, as this happens every year. With activity in the market and throughout Texas, I would also hope for an increase in overall appraisal values for the small business customer/client.
What should clients expect when applying for construction loans? With my job role as a construction loan manager-SBA lending, I am working with the borrower on their approved loan to get them to the closing table as well as making sure their selected general contractor has met the bank’s and SBA requirement to minimize the construction risk. The contractors are not applying for the loan, but once I ask for their financials for bank review, they feel like they are applying themselves. The overall goal is to waive the payment and performance bond fee for the small business owner. This is the fee the contractors pass over to the borrower/owner on the contract. My goal is to try to eliminate this fee, to benefit the small business.
Are there any expected shifts in the market that would affect construction loans next year? I have seen historically the overall vacancies rates in existing real estate/condos improve a great deal. I know some of our Texas cities do not have enough inventory to sell, or the real estate seems to
What does the process involve and how long does it take? The SBA-Small Business Lending process is not fast. So, that is a very openended question. We have some small leaseholder deals that have historically closed as quick as 10 days or less. But keep in mind, the borrower has to be on
However budget constraints seem to always push the limits of available money for certain types of work. What is on the horizon for the Houston construction industry? It will be interesting to see what the oil companies capital projects will do based on the current price of oil. In addition, I think the medical projects will probably rise to the top of future work. SpawGlass is a Texas-based general contractor, construction manager, design/ builder and civil contractor with offices in Austin, Houston, North Texas, San Antonio, South Texas and the Golden Triangle. –ab
spot and proactive on their end in providing the paperwork the bank has required. Then, the longer processed loans can take up to six months-plus. Keep in mind, this is based on all of the replatting, zoning and permitting processes involved. The loan approval process is the first step of a long process. The six months estimate is the beginning phase of loan application up to the close date. And the close date is based on when the building permit is issued. So, the overall process is truly up to the borrower and how fast they really want to close their overall project. What changes have you seen in construction lending, as a market or in terms of business, over the last five years? And what would you like to see change? Projects are getting bigger and busier. As I stated earlier, if the inventory for real estate is scarce, then small businesses are wanting and needing to purchase their own building or building a new one for business expansion. So, it will only get busier. The overall appraisal values have bounced back since the lull we had back in 2008-2009. So again, I have to repeat that it is the time to borrow, especially for the small business. And keep in mind, the small business has to be profitable and not in the red or negative (net losses). I forecast more and more borrowers want to be their own boss, and then be a small business owner themselves versus working for a big corporate company. And I believe the city fees will increase year after year. I would like to see the building permit process throughout the major cities of Texas move a bit faster to benefit the small business owner. Debra Ruiz began her banking career in 1996 and has been working with small businesses since 1999. She has been with Wells Fargo Bank, NA-SBA Lending for 12 years. –mh
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Houston Construction News • Jan 2016
Page 17
Round-Up
A win-win for busy people
L-R: Dan Caine, Megan Hodges, Nick Kennedy and Clynt Taylor invite busy professionals to try a more efficient way of moving around Texas.
cierge, Wi-Fi, snacks, a comfortable lobby with bathrooms, charging outlets and much more. “Somewhere in my two million miles of commercial air travel, I determined that I would find a way to make travel better for time starved executives,” Kennedy says. “The solution had to be affordable, accessible and a justifiable expense, not a luxury. It had to be safe and convenient as well as recover what has been lost in commercial air travel – time and dignity. I hope you'll join the RISE community of successful frequent travelers. We created it with you in mind." Reclaiming hours of busy executives lives is critical professionally and personally, and RISE affords them that opportunity. “Monthly membership dues are fixed, no matter how much you fly – five times or 20 times a month. So your CFO will never complain about your travel expenses again,” Kennedy said. –lh
Association Calendar
Content submitted by Associations to Construction News Associated Builders & Contractors
Jan. 7: 2016 Leadership Forum Jan. 12: Membership Orientation Luncheon Jan. 20: Inaugural Celebration Jan. 29: Membership Breakfast For more information call 713-523-6222
AGC Associated General Contractors
Jan. 21: Member Orientation, 11:30am Jan. 28: Annual Chapter meeting, 7am For more information call 713-843-3700
AIA American Institute of Architects
Jan. 2: Urban Art Tour Downtown Houston Jan. 9: Rice University Walking Tour Jan. 16: Houston Heights Bicycle Tour Jan. 23: 3rd Ward Bicycle Tour Jan. 30: Montrose Walking Tour For more information: www.aiahouston. org
ASA American Subcontractors Association
Jan. 6: Membership meeting Jan. 13: Safety Professionals Peer Group Jan. 21: General Lunch meeting Jan. 26: Safety meeting Jan. 29: 19th Annual Excellence in Construction Awards, Houston Junior League For more information call 281- 679-1877
CSI Construction Specifications Institute
Jan. 25: Chapter meeting, 5:30pm, Economic Outlook for Construction, Guest Speaker: Pat Kiley, Kiley Advisors, members and first time member guests are
free, non-members $35, includes dinner For more information visit http://www. csihouston.org
FPA
Wright
Aguilar
Katherine A. Ormond has been named an associate at Glassman Shoemake Maldonado Architects in Houston. Ormond will manage the design, development and coordination of a variety of projects. Costello has hired Jose G. Roberto, PE, as director of construction services. Roberto has more than 30 years experience. He will lead the Costello team in the execution of CEI and construction services contracts for TxDOT, HCTRA, other toll road authorities and design-build projects. Roberto earned his BS degree in Civil Engineering from the University of South Carolina.
Chuck Wolf has joined Arcadis as senior vice president. In his new position, he will focus on emerging infrastructure and water issues in Texas for Arcadis. Wolf holds bachelor’s, master’s and doctorate degrees in civil engineering from Texas A&M University. LJA Engineering Inc. has promoted Patrick CarriganSmith, PE, to project manager in the firm’s Houston Land Development Division. CarriganSmith brings more than five years of engineering experience in both land development and water/wastewater design. He is graduate of California State University, Chico, with a B.S. degree in Civil Engineering.
Foundation Performance Assoc.
Jan. 13: Monthly meeting, 5pm, Speaker: Gary Beck, P.E. ECO-Holdings Engineering Services For more information: www.foundationperformance.org
HAGA Houston Area Glass Association
Jan. 13: Quarterly Dinner meeting, 5:30pm For more information visit www.houstonglass.org
Submissions
ABC
Zeitoune
Lockwood, Andrews & Newman Inc. (LAN) has promoted two employees to lead its infrastructure large diameter and transportation business groups. Warren Green PE, has been promoted to vice president and business group director of LAN’s infrastructure large diameter group. Green holds a bachelor’s degree in Civil Engineering from Mississippi State University. Dev Rastogi, PE, has been promoted to vice president and business group director of the firm’s transportation group. Rastogi graduated from Washington University in St. Louis with a bachelor’s degree in Civil Engineering.
Round-Up
N
ick Kennedy founded RISE with a laser focus on transforming air travel for frequent travelers. Cofounder Clynt Taylor had been involved in numerous start-ups and entrepreneurial ventures since leaving IBM. Both had traveled extensively, and suffered through the valuable time lost dealing with airport lines and delayed flights. Together they assembled a world-class team and leveraged their skill sets to revolutionize private air travel to make it accessible through membership. RISE (iflyrise.com) is a game changer with no lines, VIP treatment and bringing back dignity to flying. Flying out of Austin, Dallas, Houston, and soon San Antonio, their members spend very little time in airports and they have them flying within minutes of their arrival. The only thing worse than spending hours in traffic is spending hours stuck in lines. RISE airports have free parking and are outfitted with a con-
Jalal Zeitoune has joined Johnston LLC as the practice leader for interior design and Melissa Wright is the new director of marketing. Elkin Aguilar, AIA NCARB, LEED AP, has also joined the firm as design practice leader in architecture. Zeitoune received his Master High Studies in Interior Architecture at the Lebanese University Institute of Art in Tripoli. Wright holds a B.A. degree in Marketing from the University of Houston – Clear Lake. Aguilar received his Bachelor’s degree in Architecture and Urban Design at America University in Bogotá, Colombia.
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
IEC
Submitted to Construction News
Independent Electrical Contractors
Party time
Jan. 20: Monthly meeting For more information call 713-869-1976
NAWIC Nat’l Assn. of Women in Construction
Jan. 12: General Dinner meeting, 3:30pm: Networking, 6pm: Dinner and Business meeting, HESS Club, 5430 Westheimer Rd. $35 Dinner and Program with reservation, $40 Dinner and Program without reservation, $8 Program only, membership is not a requirement for attendance, guests are always welcome For more info: www.nawic-houston.org.
PHCC Plumbing-Heating-Cooling Contractors
Jan. 22: Casino Night, 6:30pm, Cadillac Bar & Grill For more info: www.gulfcoastphcc.org
Houston Area Glass Association (HAGA) President James "Luke" Lucas, Southwest Glass, greets members and guests at the HAGA Holiday Social held at the Westwind Club Dec. 3. –ab
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Houston Construction News • Jan 2016
Rolling up sleeves
continued from Page 1 — Family matters Ingram and employees had fun decorating the company truck with Christmas lights for the parade. “In addition, we like to stay active in the community during the year,” Ingram said. “We are active with the Lions Club
and Gloria Dei Lutheran Church. We like to volunteer as much as possible.” Webster-based Ingram Plumbing is a family-owned full-service commercial and residential plumbing company. –ab
continued from Page 1 — 15 years and counting
Y
oung construction professionals worked with Urban Philanthropy by KP to turn an empty lot in Southeast Houston into a sustainable garden Dec. 5. The purpose of the project was to help local residents transform their community into a healthier place. The Associated Builders and Contractors (ABC) Houston Chapter was involved in the community garden project. –ab
a holiday family get together and employees enjoy attending the local Christmas parade. They also all go out to dinner with their spouses. “We typically close the office between Christmas and New Years Day because it allows everyone a 10-day vacation,” he said. When Michna and his wife have free time, they go fishing together, relax at the beach, watch Texas A & M football and spend time with family. Employees like to go fishing near the Texas coast and they like to play golf in their off time. Several employees have
children who participate in cheerleading and sports. Looking ahead, Michna says his goal for the company is to continue what they are doing now and do it better. He’d also like to hire a few more employees in the future. “We appreciate all the support we are getting from our community,” he said Shelmark Engineering provides civil, structural and marine engineering services to coastal communities along the entire Texas Gulf Coast. The company primarily handles residential and commercial projects in Galveston County. –ab
continued from Page 1 — Constructing with care
Electrical Christmas
The Houston Methodist Cypress Emergency Care Center has 10 exam rooms.
L-R: The IEC Texas Gulf Coast Chapter 2016 Board of Directors: Ken Hengst, Sean Gilstrap, Joe Banda, Larry Burns, Jim Roberts, Danny Colwell, John White, Charlie Pfeiffer, Armando Lozano and Michael Luck
R
eady to mingle, electrical contractors and suppliers caught up with friends at the Independent Electrical Contractors (IEC) Texas Gulf Coast Chapter Christmas open house held at the IEC office Dec. 2. –ab
“The main challenge the construction team faced and overcame was permanent power was not available to the site until one month prior to substantial completion,” he said. “Green board was used for the drywall and generators were brought in to provide power for construction.” Fredrickson says this project is a design/build project that allows the architect and construction firm to design and build to the target value of the owner. “This team has been working together to construct these centers with minor
modifications,” he said. “This is the fourth center to be provided in this manner and a fifth center, Houston Methodist Spring Emergency Care Center, is currently underway at 5303 FM 2920 in Spring.” Founded in 1938, Linbeck is a construction firm offering construction management at-risk, design/build, integrated project delivery and related vertical construction services. The firm has three offices in Houston, San Antonio and Fort Worth and employs 227 people. Linbeck’s portfolio primarily consists of higher education, private primary and secondary education, healthcare, cultural, hospitality, and large mixed-use and highdensity residential real estate. –ab Key professional team: Project Superintendent: Joe Ferguson Architect: PhiloWilke Partnership (Greg Johnson and Melissa Edwards)
Houston Construction News • Jan 2016
Page 19
How sweet it is
S
pectators visited Hermann Square Dec. 12 where more than 30 teams of local architecture firms, design professionals, students and enthusiasts competed in the 7th annual Gingerbread Build-Off. Teams created their masterpieces using 100 percent edible materials. Awards were handed out acknowledging the most unique and creative gingerbread structures completed. Following the Build-Off, winners and select competitors were featured in a one-week exhibition Dec. 1418 at Architecture Center Houston. Architecture Center Houston hosted the event. –ab Grand Prix de Show: Coral Reef - Courtney Harper+Partners
1st Runner Up: Buddha Mountain - English + Associates
2nd Runner-Up & Tallest Standing Structure: Milkweed House - American Construction Investigations Ltd., League of Native Planters
Public Favorite & Most Creative Interpretation of Materials: Sandcastle - Thomas Printworks, Ginger and the Snaps
Best Traditionally Themed: Dollhouse - Kirksey & Canopy
Best Non-Traditionally Themed: Tower Theater Jackson & Ryan Architects
Best Architectural Icon: Gerald D. Hines Water Wall PBK Architects
High School Challenge: City Hall - Klein Forest High School
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Houston Construction News • Jan 2016
Construction News ON LOCATION
Submitted to Construction News
Tis the season
Stars so bright
Mustang CAT created its Christmas display in December using construction equipment at the Northwest Freeway location. The display is a tradition that has been around for more than 20 years. –ab L-R: Estella Carrasco, Dave Franklin, Ramona Espinoza, Chandra Franklin Womack, Jeannette Jimenez, Rachel Riley and Robert Dinjar gather by the Christmas decorations at the Aran & Franklin Engineering Inc. office in Texas City. –ab
Construction News JOB SIGHT
Merry and bright
Construction News ON LOCATION
Southern hospitality
Construction News JOB SIGHT
The Southern Shingles LaMarque location employees are ready to start a busy week. Ryan Langston (right) is the branch manager. –ab
The J.B. Martin Construction Co. crew does the concrete work and the J & M Plumbing crew provides the plumbing work at the Maria Restaurant project in Dickinson. –ab
Submitted to Construction News
Taking measure
The Oxford Builders Inc. crew builds a bridge at The Houstonian Club. The structure will be covered with Ipe wood. – ab
Holly jolly
Front counter salesman Javier Lopez has a great day at Nationwide Tools & Supplies in December. –ab
Submitted to Construction News
Safety first
The FireTron Inc. Stafford employees recently traveled to the JW Marriott San Antonio Hill Country Resort to attend the Notifier Annual Leadership Conference. The company was named Distributor of the Year for a second time. –ab