Austin November 2016 by Construction News

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Volume 15

Number 11

NOVEMBER 2016

On the top floor

Focus on Texas

Eric Adams, center, and his crew chiefs are pictured before heading out for a job.

Texas First Rentals celebrates its Texas heritage by ensuring its local customers are first priority.

ric Adams is a third-generation flooring specialist. Both his father and grandfather are in the industry in Austin and Adams worked for his father until he opened his own company, Eric Adams Flooring, in 2012. Adams was born in Austin, but grew up in Bastrop. At the age of 18, he moved back to Austin and began working for his father. “My father and I are very much alike,” Adams says. “We have to be working all this time. I wanted my own business and he wasn’t going to retire anytime soon.” Doing about 15 percent commercial and 85 percent residential work, Adams says he loves what he does.

“I love doing this because every job is different and we can be creative,” he says. “Since we started doing commercial, we are doing more and more commercial.” His goals are to establish a great company, while keeping a low overhead and maintaining high quality. The company has worked on hospital and school projects, among others. Adams says customer service is a top priority. “I make myself available all the time,” he says. “Customers can deal with me directly. Their happiness is what keeps me going. My biggest satisfaction is when it turns out better than they expected.” continued on Page 17

hen HOLT CAT opened its Texas First Rentals in San Marcos on May 15, that location joined 10 others in Texas that were launched to address the specific rental needs of Texas customers. “We named our stores Texas First Rentals because the ownership of this company has been in Texas since 1933,” says Don Myrick, general manager for the locations. “The company is born and bred in Texas – it’s a Texas business for Texas customers.” Joining the Holt family of businesses, which include HOLT CAT, HOLT Agribusiness and HOLT Crane and Equipment, Texas First Rentals is focused on answering a specific need in the

industry. “The focus of these stores is to take advantage of the trend in our industries leaning more towards rentals than sales,” Myrick says. Texas First Rentals supplies Cat equipment and generators, plus equipment from brands such as Genie, JLG, Sullair, Wacker, Laymoor, Vermeer and more. Types of equipment include dirt, aerial lifts, pumps, compressors, light towers, rock saws, generators and more, Myrick says. At the San Marcos store, there are currently 12 employees and Myrick says the HOLT way is to empower employees and managers to work with local continued on Page 17

First class glass

ashion Glass & Mirror LLC is a large glass manufacturing company based out of DeSoto, TX. They operate a handful of manufacturing facilities across the state of Texas, including one in a leased space in New Braunfels, which was not meeting their needs in terms of convenient day-to-day operations. Looking to build a brand new facility, President and CEO Larry Jaynes turned to Lockhart, TX. and Countywide Builders to take full advantage of the new SH 130 highway providing direct access to the Austin-San Antonio Corridor. “The relationship between our company and Mr. Jaynes was unique,” says Jim Smith, owner of Countywide. “We were on a fast-track and we started the project on a handshake before we had a contract. It was an old-school deal.” Fashion Glass & Mirror’s new facility is a 30,000-sf building that includes a 2,400-sf showroom and office space, as

well as a large manufacturing and storage space and indoor, overnight parking for their delivery trucks. The project took six months and was finished in May 2015. The exterior is rockfaced block and the interior is sheetrock with polished concrete floors. Twentyfour foot Big Ass Fans keep the area cool. Winn Smith, Jim Smith’s son, was project manager on this project and Ron Metz was project superintendent. Architect was Steinbomer, Bramwell & Vrazel Architects (SBV), Austin. Engineer was Gallup Engineering, San Marcos. Jim Smith says Countywide and SBV have worked together on many projects and are currently on others. “They are excellent,” he says. “They are very responsive to our needs. Our relationship is very close.” SBV Architects says they worked closely with the client and Countywide to The 30,000-sf building stands out in its new location in Lockhart.

continued on Page 17

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Austin Construction News â&#x20AC;¢ Nov 2016

Austin Construction News • Nov 2016

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The gold standard

Swinerton Builders says “Danke”

winerton Builders recently hosted an Oktoberfest Style Party at its Austin office Sep. 22 to show its appreciation for its subcontractor partners. This annual Swintoberfest Subcontractor Appreciation Event was a great success, with about 100 attending. Swinerton showed its appreciation for the hard work and dedication of its subcontractor partners by treating guests to German food and beer from Franks Sausage. Swinerton held a drawing for several prizes that were given away at the event and everyone that attended received a custom Swinerton beer stein to take home. –cw

rother and sister team, Wayne Orender and Sheila Ray, own and operate Ditch Witch of Central Texas, Inc. Orender is general manager in Austin and Ray is headquartered in Selma. Started in New Braunfels in 1974, the company soon split into its two current locations. The company is WBENC and Texas HUB certified as a Woman Owned business. In Austin, Vance Wells is service manager and Kevin Fortson is parts manager. In Selma, Jerry Almanza is parts manager and Mike Talka is service manager. According to Courtney Ray-Harris, manager of fixed operations and accounting, and daughter of Ray, each location has 16 employees. Recently, seven employees from the two locations achieved special certification from a dedicated facility at the Ditch Witch factory in Perry, OK. that provides training for employees, as well as cus-

Submitted to Construction News

On board!

Texas Statewide Construction Credit Group (TSCCG) elected its new board of directors for the 2017-18 term. Elected were Lori J. Drake, Lone Star Materials, Austin, president; Austin LaFaille, Ferguson Enterprises, Spring, vice president; Tami Behner, American Tile, Carrollton, secretary; and Belinda Haynes, Beacon Roofing, Grand Prairie, treasurer. Pictured, the group recently enjoyed its Round ‘em Up Celebration at the Stockyards at the All South Credit Conference. –cw

Austin

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Austin Editor — Cyndi Wright, AustinEditor@ConstructionNews.net — 210-308-5800 Publisher . . . . . . . . . . . . . . . . . Buddy Doebbler Editorial/Production . . . . . . Reesa Doebbler Managing Editor . . . . . . . . . . . . . . . . Cyndi Wright Production Manager . . . . . . . . . Sue Johnson Account Manager . . . . . . . . . . . Dana Calonge Construction News Ltd. Home Office P.O. Box 791290 • San Antonio, Tx 78279 210-308-5800 Fax 210-308-5960 www.ConstructionNews.net If you are a construction-related company in Travis, Hays, Bastrop, Burnet, Blanco, Caldwell or Williamson counties and are not receiving a free copy of the Austin Construction News, please call for a Requester Form, or visit our website.

L-R: Kevin Fortson is parts manager and Vance Wells is service manager in Austin

The Austin Construction News (ISSN 15477649) is published monthly, by Construction News Ltd., dba Austin Construction News, and distributed by mail to selected constructionrelated companies in Austin and surrounding counties. All submissions should be mailed to our editorial offices. We reserve the right to edit any materials submitted. No fees for materials, copy or photographs submitted will be due unless agreed upon in advance in writing. Submissions will be published at our discretion on a space-available basis. Construction News, Ltd., dba Austin Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error. Publisher reserves the right to reject any advertisement at any time.

tomers. Recognized for attaining goldlevel status in the Service ProTechnician program are Mike Talka, Ben Barnhart, Robert Heriford, Jesse Travis and William Yancey. Recognized for attaining gold-level status in the Parts Pro program are Jerry Almanza and Leo Robledo “Every tech at the Selma location is gold certified,” she said. “Vance and Kevin are gold certified and they are working on getting the rest of the Austin team certified.” As a company, Ray-Harris says they are avid sponsors of Austin Rodeo, FFA and also of employees who have outside interests, such as two who are professional fishermen. The company also hosts hunting tournaments for customers and employees, as well as special dinners for customers. Ditch Witch® designs, manufactures and markets products for the underground utility construction industry. –cw

Construction News ON LOCATION

Gas professional

Daniel Romo, site manager at Matheson Gas in San Marcos, took a few minutes out of his busy day to pose for a picture. –cw

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Austin Construction News • Nov 2016

we ended up going our separate ways. Rusty: I also went with the same larger company after college. That’s where we met. Kevin: We jumped in and started Structura together in 2006.

Rusty Morgan and Kevin Jones Owners Structura General Contractors

usty Morgan, president and CEO, and Kevin Jones, vice president and COO, of Structura General Contractors, are not brothers in the traditional sense, but their trajectory through life has been so similar that they could have been. Now, as co-founders of Structura, they and their team are celebrating 10 years in business and find great satisfaction in giving back to the community they have helped to build. Their work at Community First! Village – a new concept for helping disabled and chronically homeless people in Austin find permanent housing – has been particularly close to their hearts. Your histories are truly similar. Tell me about it. Kevin: I grew up in Round Rock and attended Round Rock High School. I played tennis and did good in school, plus I had a lot of fun! Rusty: I was born and raised in Austin and graduated from Anderson High School. Kevin and Rusty: In college, we both started out as business finance majors and we both hated it! Kevin: I worked summers for a concrete foundation builder in high school. I thought about it and decided I liked that guy’s lifestyle, so I switched to a construction science major at Texas A&M. I graduated in 1994. Rusty: My father was a banker and I was following in his footsteps, but I’m more of an outdoor type person. I also switched to majoring in construction science at Texas A&M. I graduated in 1984. What happened after college? Kevin: I went straight to California to work for a large construction company that eventually brought me back to Austin. After that, I started a company called Lago Builders with a partner, but

It sounds like you survived the recession. Rusty: We had a couple of really good years and we grew really fast. Then, in 2009, everything came to a screeching halt, but we survived. Things started ramping up in 2011 and we have since opened a second office in Houston. We work in all the major metro and surrounding areas. We go where our clients are. I know that Structura, as well as other builders and architects, have played a large part in Community First! Village. How did you get involved? Rusty: We’ve done a lot of construction work for Riverbend Church. They had committed to building several of the houses there and they asked us to build the concrete piers for each house and the kitchens. We donated our time and services to Riverbend for the first projects. Then we got invited to an event where all the builders present were asked to commit to building two houses with donated labor and discounted supplies from McCoy’s. Kevin: We were taken with the mission. It’s very worthy and tugs at your heartstrings. Rusty: Ten architects had been chosen for their home designs and we all picked the house we wanted to do. Kevin: We picked our house and about a week later, we got a call from Alan Graham, a founding member of the village. Apparently, there was one home design with a rounded roof that nobody had picked. He said, “We’d love for you guys to consider this house.” They knew we would rise to the challenge. In the company, we turned the whole project into a fun team building opportunity. We selected two project managers and had a draft where they picked their teams, one for each house. We spent a solid two to three weekends on those houses. Kelly Hogan, our marketing director, has really been involved throughout and became the project manager for the micro homes as our team had our ongoing work to consider. She was instrumental in assuring that the houses were completed and assisted with the furnishing and made a quilt for each home.

Rusty Morgan and Kevin Jones left business finance behind and became successful builders in Austin.

they approached us to be one of the general contractors being considered to build the sanctuary at Community First! as a paid project and we were selected. We just recently broke ground and the project should be finished in 2017. The whole thing has been a blessing. Rusty: I think we just really connected with them. We like doing things that make people’s lives better. Our most rewarding projects are hospitals, churches, schools and non-profits. There may not be as much money in a project for a non-profit, but it’s a different kind of reward. Kelly Hogan: For many volunteer opportunities, you don’t really see the end result. But this is different – I was able to talk with the residents and have a transformational impact on their lives. Kevin: Yes, you can go out there and you can touch and feel the difference you are making. Rusty: We will do more out there. This was a huge effort with a lot of contractors and sub-contractors taking part. It certainly wasn’t just us. It sounds like your whole team is happy to be able to make a difference in the lives of people around them. What does Structura look for when making a new hire? Rusty: We look for superstars who understand that making the client happy is the most important thing. They need

to be able to figure out what to do to make it work. Attitude is the most important. Kevin: We can teach the rest. We need people to have a positive energy. We have a core group of superintendents that have been with us a long time. They have a positive, upbeat attitude and they push everyone to keep it moving. What do you two do for fun? Rusty: I have four pretty young children, so I spend a lot of time with them. I like to camp, hunt, fish and play tennis. Kevin: My kids are older now, so before they head off to college, we are trying to do as many family activities as possible. We love to travel and take the family on trips. My release is being on the lake. Who would you buy a beer for? Rusty: Eric Clapton. I’d love to hear his stories about how he overcame many life challenges. I’d buy him a coke. Kevin: Willie Nelson, Snoop Dogg, Chris Farley and Dave Chapelle. Somehow I think that combination would be the perfect recipe for a lot of laughs and a great memory! –cw (For a complete list of builders and architects involved at Community First! Village, please see the website version at constructionnews.net)

Now you have another project at Community First! Village, right? Kevin – As we worked on the micro homes, we developed a relationship with Megan McCoy and Alan Graham and

Construction News ON LOCATION

Up and coming House 701, the one with the rounded roof, that Structura stepped up to build at Community First! Village.

Isaac McGill, on just his second day of work at Fastenal in San Marcos, is already ready to welcome customers and help them with their needs. –cw

John McKeon, project manager, Eric Cuellar, superintendent and Rusty Morgan were the team behind the round roof house at Community First! Village.

Austin Construction News • Nov 2016

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You might be next to save a life

Associations behind passage of Bill to delay overtime rule

Smiling now, Dana Calonge, seated, and Cherie Foerster proved that having basic life-saving skills can truly save a life.

magine being at lunch with your coworkers, when suddenly one of them begins to choke. Unfortunately, this wasn’t a dream scenario recently in the Construction News headquarters location in San Antonio where Dana Calonge, Construction News account manager, and Cherie Foerster, executive director of The Builders Exchange of Texas, were enjoying lunch. Foerster was munching on a salad that contained chunks of apple. “I swallowed a bite with a piece of apple in it and I felt the apple lodge in my throat,” Foerster says. “I could feel a little bit of air passing through, so I thought, no problem, I’ll just wash it down with water. But when I took a drink of water, the apple completely lodged, blocking even the small amount of air that was getting through.” Foerster began to panic. She wondered if this was how it was going to end. She remembered the universal sign

for choking, which she did, placing both of her hands around her neck. Fortunately, Calonge, recognizing immediately what was going on, sprang into action. Having received training in CPR and the Heimlich Maneuver, she positioned herself behind Foerster and, with one try, dislodged the chunk of apple. The two friends can now look back at the episode with smiles, but it could have turned out differently. Most episodes of heart attacks and choking happen in settings where the people involved know each other. Would you know what to do if a friend or loved one suddenly experienced one of these emergencies? Most communities offer a variety of CPR and Heimlich Maneuver training – some are free. Companies will come to your location to do a company-wide training. Be sure you are ready if someone needs your help! –cw

Success in safety

Vanguard Fire and Security owner Cindy Richter, second from left, accepted a 2016 Safety Excellence Award from NAWIC. Also pictured, L-R: Schultz Construction, Performance Contracting, Meyer Najem Construction and Tri Supply and Equipment.

anguard Fire and Security, owned by Cindy and Rance Richter, received a national award for the NAWIC Safety Excellence program during the association’s recent convention in San Antonio. According to Cindy, the company is currently at 87 consecutive months and counting for no lost time due to injuries on jobsites. “What sets our safety program apart from others is our safety culture,” Cindy says. “Every employee knows the importance of safety. They are confident in their decision-making and authority to stop work, shut down a job site or prevent a fellow employee from continuing work when there are safety concerns. A bottom up – top down culture of safety has contributed to the success of our program. And we don’t forget to celebrate our success quarterly with awards, recognition, and our annual chili cookoff for all our employees.” The Richter’s bought the company in 2003 from the founder and it’s a successful woman-owned business.

“Staying focused on our goals and being patient accounts for our success,” Cindy explains. “Success doesn’t come all at once for most businesses and it is important to be able to recognize it and celebrate milestones along the way.” Providing opportunities and promoting from within are two things that Cindy believes motivates the staff to be hardworking, passionate and committed. “Each fall we host an all company Chili Cook-Off with raffle items and prizes,” she says. “We invite customers and our suppliers to judge the best chili. For the last several years we have taken our manager’s to dove hunt in West Texas and each Christmas we go bowling for our company party and everyone is encouraged to bring their spouses. “This summer we worked on a Habitat for Humanity build project in East Austin. It was towards the end of the project so we were landscaping, installing doors and painting cabinets.” –cw

enator Lamar Alexander (R-TN), chairman of the Senate Committee on Health, Education, Labor and Pensions recently introduced legislation concerning the Department of Labor’s (DOL) final overtime rule, due to take effect Dec. 1, 2016. The DOL’s new overtime rule provides for several items, including raising the salary threshold indicating eligibility for overtime from $455/week to $913/ week, or $47,476 annually; and automatically updates the salary threshold every three years. Alexander’s introduced legislation, known as S. 3464, the Overtime Reform and Review Act, would phase in the DOL’s new salary threshold in four stages over five years, starting with a salary increase to $36,000 Dec. 1, 2016, followed by a “pause year” in 2017 to allow employers to adjust and review consequences of the new rule. Additionally, S. 3464 would prohibit automatic increases, but would allow the DOL to propose changes to overtime regulations in the future through the customary notice and comment process. Associated Builders and Contractors (ABC) joined hundreds of other companies and associations in applauding S. 3464. “The new overtime rule will have a long list of unintended consequences for ABC members, including increased labor

costs and an undue burden on certain regions of the country,” said ABC Vice President of Legislative and Political Affairs Kristen Swearingen. “The Department of Labor overstepped its authority in creating this rule, which requires the salary threshold for exempt employees to automatically update every three years. ABC is committed to protecting its members from the burdens and uncertainty created by this rule through every available opportunity." ABC, along with a coalition of business groups, filed a lawsuit seeking to overturn the rule Sept. 20 in the U.S. District Court for the Eastern District of Texas. ABC also slammed the provision of the rule that requires automatic updating of the threshold in announcing its lawsuit. “Construction projects often last longer than three years and are meticulously planned in order to stay on time and budget,” said Swearingen. “This rule will create uncertainty for contractors and their employees by forcing contractors to speculate about employees’ status years into the future when work on a project will actually be performed.” Other national associations that have indicated their support for S. 3464 include AGC, IEC, ASA, along with many of their state and regional chapters. –cw

Past issues of Construction News can be downloaded at www.ConstructionNews.net Construction News ON LOCATION

Carpet support and more

Michael Solis is ready to help customers pick out the best solutions for their floors at Carpets Design in San Marcos. –cw

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Austin Construction News • Nov 2016

Captive insurance gaining popularity in the construction industry

Profit fade: It’s a numbers game Michael Kuchar, CPA, CCIFP, Construction Group Shareholder Doeren Mayhew Houston, TX

s a construction business owner, you’ve probably started a job with high hopes only to find that the anticipated profit had somehow evaporated. That is, the costs of performing the work equaled or exceeded the revenue it brought in. This “profit fade” can result from a number of factors. To keep your business on track, you need to learn to play the numbers game that keeps your margins intact and your bottom line strong. Scrutinize your estimates Sometimes, the desire to win a bid can lead to underestimating materials or labor costs. A hasty or careless estimate may omit items for which you’ll later have to unexpectedly pay. For this reason, it’s always wise to have a second set of eyes — preferably a senior manager or owner — review bids to ensure accuracy and that a reasonable profit margin has been built in. Remember to include some contingency costs to allow for delays because of inclement weather and other unpredictable developments. Periodically review past jobs that represent a cross-section of profitability, comparing estimated and actual costs to help determine where unprofitable projects went awry. Set budgets, track progress Closely tracking costs as the project is underway can help you recognize problems and take action early — before they whittle away at profits. Document a budget for each job that’s broken out into project phases, including quantities of materials for each phase. The project manager should compare the budget against labor time cards and materials invoices to assess progress and whether costs are in line with estimates. Quantifying the work as it’s performed will help you and your management team to make adjustments in the field if expenses are getting out of control.

time delays when the client can too freely make changes to the project while work is in progress. Before beginning a job, make sure you and the client agree on the scope and nature of the work you’re expecting to do — and that this understanding is clearly indicated in the contract. From there, establish a clear process for handling change orders. As you’re no doubt aware, waiting until completion to bill for changes will likely leave you with an uphill battle to collect those additional amounts. Weigh assumptions versus performance After each job is completed, compare estimated costs to actual ones. Talk with your foremen and project managers about what went well or poorly, which factors helped or hindered their work, and whether the estimate was reasonable or ill-conceived. Take what you learn from these discussions and use it to improve future estimates and projects. If certain types of work, clients, locations or conditions regularly seem to increase your costs, adjust your bids accordingly or perhaps even avoid certain types of jobs. On the other hand, if you can identify factors that routinely lead to higher profit margins, focus on that kind of work. Go on the offensive Fighting profit fade is important to every construction company’s financial health. Don’t wait until it’s too late! Go on the offensive to keep costs down and profits high. 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.

Tom Spencer, Construction Practice Leader INSURICA San Antonio, TX

s insurance buyers have grown weary of rate hikes and fluctuation in insurance markets, Captive insurance programs have increased in popularity. Captive insurance is essentially a type of self-insurance that can provide significant benefits to the right type of company. While they certainly aren’t for every business, Captives are popular among large contractors because of the construction industry’s exposure to high hazards and large Workers’ Compensation premiums. Many construction executives are attracted to Captives because of the potential premium savings, but in many cases, the greatest benefit is the amount of control it gained over a standard policy buying experience. Not only can participating in a Captive provide more control over the claims process, it can also be used to insure exposures not typically covered through policies available in the marketplace. As Captives have grown in popularity, there are an increasing number of types of Captives available. When many people think of Captives, they think of SingleParent Captives—wholly owned subsidiaries with only one participant. These types of Captives are generally reserved for very large multi-national companies though. Over the past decade, the trend has been toward Group Captives. Group Captives are a more affordable way to participate in Captives because a lot of the startup costs, claims administration, and Captive management fees are spread among a few hundred participants. The result is that companies paying as little as $250,000 in casualty premium can participate. What’s more is that Group Captives are often formed around industry groups, and there are plenty of options for construction-specific Captives. In some

cases, this allows the Captive to provide certain services, such as compliance audits, safety training, program development, and education for employees. There is also a certain level of risk sharing that happens within a Group Captive. Because of this, Captive managers are very selective about which companies they allow to participate in any given Captive. Some are more aggressive with their standards while others are more lackadaisical, and different programs have different appetites for risk. Due to the wide and varied nature of Group Captives, it is paramount that any company considering participating does their homework and really understands the differences between the available options. Different Captives will have different standards for financial requirements, up-front costs, complexity, and products offered. Group Captives can have as few as a dozen participants all the way up to thousands of participants. For all the benefits they can provide, Captives sometimes get a bad rap because some financial advisors will bill them as tax savings solutions. While there are some potential tax benefits to participating in a Captive, it is important to remember that the best reasons for participating are to insulate your company from pricing fluctuations and to give yourself more control over the risk management and claims processes. Tom Spencer is the Construction Practice Leader for INSURICA’s Texas offices. His experience as a life-long construction insurance professional gives him a unique understanding of managing the risks facing the construction industry. Tom can be contacted at TSpencer@INSURICA.com or by phone at 210.805.5901.

Clarify your contracts It’s hard to avoid cost overruns and

Submitted to Construction News

Top remodels

No mean cats here!

Austin National Association of the Remodeling Industry (NARI) held its annual Tour of Remodeled Homes Sep. 24-25. The event was kicked off by a lively Hawaiian luau, hosted by BMC Design Center, on Sep. 20. –cw (Photo by David Brendan Hall)

Associated General Contractors (AGC) Construction Leadership Council (CLC) Austin Chapter let loose some howls at the moon at a mixer at the Mean Eyed Cat Bar in Austin recently. –cw

Austin Construction News • Nov 2016

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Post Incident Drug Testing

For convenience’ sake: The give-and-take of termination for convenience clauses

Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX

John Grayson, Principal Cokinos, Bosien & Young Houston, TX

“T

ermination for convenience,” you may see these words in your contracts or purchase orders, but what do they really mean? This clause can be okay for contractors, as long as they make sure it does not leave them high and dry. A termination for convenience clause is a provision in construction contracts that provides parties the right to terminate a contract with or without cause. Its purpose is to allow the terminating party to avoid liability for terminating without cause, and it generally bars wrongful termination claims. Historical Origin World War II lifted our economy out of the Great Depression, as Uncle Sam poured our pooled resources into industrializing this nation, putting people to work building planes, ships, and tanks, anything needed to fend off the evils that lay across the pond. However, the government had no way of knowing the exact date we would win the war, so it created a new legal concept for contracting with suppliers of wartime materiel: the termination for convenience clause. Termination for convenience clauses allowed the government to halt all production for the war as soon as it was no longer needed. This creature of contract crept its way into other government contracts after WWII, and by 1967, the Federal Procurement Regulation made these clauses mandatory in almost all government supply or construction contracts of over $10,000. Thirty years later, the termination for convenience clause had found its way into the American Institute of Architect’s (AIA) 1997 standard contract forms, and the non-government contract arena was opened up to these clauses. In Practice Today In the construction industry today, termination for convenience clauses can be trouble for the unwary. These clauses are enforceable in Texas. They generally make it so the terminated contractor cannot sue for wrongful termination. They effectively turn construction contractors into at-will construction

services providers and give the owner a lot of discretion in termination. Basically, as long as it isn’t in bad faith, any reason to terminate can be enough. In fact, there does not need to be any reason at all. Again, a termination for convenience clause allows termination with or without cause and generally bars a claim for wrongful termination. The potential harsh effect of a termination for convenience clause should be addressed in the contract. Before finalizing any contract containing a termination for convenience clause, make sure you know what you are getting into, know what you are giving up, and make sure the remedies are clearly spelled out. The remedies available in the event of termination are generally the contractor’s reasonable and provable out-of-pocket costs up to the date of termination. Remedies are a negotiable term and can include some provision for payment based on percentage of completion as of the termination date, but they rarely include overhead and profit past the date the contractor received notification of termination. Clearly describing the remedies is key to having a termination clause both sides can live with. This is another area where good contract drafting can provide predictability and peace of mind. John Grayson is a principal in the Houston office of Cokinos, Bosien & Young. His practice focuses on construction litigation. John represents major contractors, including EPC contractors, subcontractors, pipeline and mechanical contractors, sureties, and owners in complex construction matters in both the private and public sectors. John is a 1980 graduate of Texas A&M University and Baylor University School of Law. Contact: jgrayson@cbylaw.com. Ryan Cunningham is a law clerk who has worked at CBY since August of 2015 and assisted in researching this article. He is a third-year law student at Houston College of Law, where he is the co-chairman of the Board of Advocates and varsity Moot Court Advocate.

SHA issued changes to the injury and illness recordkeeping rule on May 12, 2016. Part of the rule addresses electronic submission of injury and illness data to OSHA annually. The rule also prohibits employers from discouraging workers from reporting an injury or illness. This policy includes routine drug testing done post-accident. Although drug testing of employees may be a reasonable workplace policy in some situations, it is often perceived as an invasion of privacy, so if an injury or illness is very unlikely to have been caused by employee drug use, or if the method of drug testing does not identify impairment but only use at some time in the recent past, requiring the employee to be drug tested may inappropriately deter reporting. OSHA’s law does not ban drug testing of employees. However, the law does prohibit employers from using drug testing (or the threat of drug testing) as a form of adverse action against employees who report injuries or illnesses. To strike the appropriate balance here, drug testing policies should limit post-incident testing to situations in which employee drug use is likely to have contributed to the incident, and for which the drug test can accurately identify impairment caused by drug use. For example, it would likely not be reasonable to drug-test an employee who reports a bee sting, a repetitive strain injury, or an injury caused by a lack of machine guarding or a machine or tool

malfunction. Such a policy is likely only to deter reporting without contributing to the employer’s understanding of why the injury occurred, or in any other way contributing to workplace safety. Employers need not specifically suspect drug use before testing, but there should be a reasonable possibility that drug use by the reporting employee was a contributing factor to the reported injury or illness in order for an employer to require drug testing. In addition, drug testing that is designed in a way that may be perceived as punitive or embarrassing to the employee is likely to deter injury reporting. These provisions become effective August 10, 2016, but OSHA has delayed their enforcement until Nov. 1, 2016 in order to provide outreach to the regulated community. The law also requires employers to inform employees of their right to report work-related injuries and illnesses free from retaliation, which can be satisfied by posting the already-required OSHA poster. The final rule can be located on the OSHA recordkeeping page: https://www.osha.gov/recordkeeping/ index.html# natarajan.joann@dol.gov 512-374-0271 x232

It involved pasta

Construction News JOB SIGHT

Getting ready to go National Association of Women in Construction (NAWIC) Austin Chapter had fun team building exercises at their chapter meeting Oct. 5 at Big Daddy’s Burger & Bar. Everybody’s creations look spectacular! –cw

Parkcrest Builders, Houston, is the GC on a 240-unit apartment complex in San Marcos. Subcontractor AIC Concrete, Houston, is getting the foundation ready to go. –cw

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Austin Construction News • Nov 2016

Fishing for great fun

Welcome to Texas!

reater Austin Contractors & Engineers Association (ACEA) gathered at the Travis County Expo Center on Sep. 29 to enjoy a fish fry. About 250 guests enjoyed the event and some great food and fun. –cw

Jason Benson, middle left, congratulating Alberto Percastegui on 10 years of service with Brundage-Bone.

ason Benson was recently named new Austin branch manager for Brundage-Bone Concrete Pumping (BBCP). As such, Benson says he manages an area that extends from the Waco-Temple area to Corpus Christi. Benson, who was born and raised in Montana, comes from a family that owns a large construction company with multiple locations in the U.S. After school, he worked for the family business, where he first got experience with concrete pumping – and his first experience with Texas. “I forgot how hot it is here,” Benson laughed. Benson started with BBCP in 2007 as a satellite branch manager in Grand Junction and then moved to corporate headquarters in Denver, where he was safety manager for the entire company. Benson brings a new level of management style to Austin due to his history of working up in the ranks and taking on nearly every task available in concrete pumping, says Kyle Rask, Brundage-

Bone’s safety director. “Jason began his career pumping concrete like most of our branch managers, but because of his strong desire to learn and advance at his trade, he quickly adapted to safety and training and became the national safety manager,” he said. Benson says working for BBCP has been an answer to some of his life’s goals. “It’s a wonderful company,” he says. “They’ve taken really good care of me. I have great opportunities for advancement. Where I end up in this company is pretty much up to me. As much as I put into it is what I’ll get out of it.” Benson says his goals for his new position include making his branch a successful and productive part of the company. “If I take good care of my employees and customers, I will feel like I am successful,” he said. Benson is married to Kristy and the couple has four children. –cw

What’s your favorite meal?

Submitted to Construction News

Pizza pizza!

This. A full English breakfast, made by my wonderful mother in Peterborough, England. (I was there last week!) Paul Marriott, Resfloor

Swinerton Builders celebrated no lost time on its project last week with a pizza party. The project is a high-rise first generation build out on 5th and Colorado in Austin. –cw

I am vegan, so vegan tacos, and anything with hummus . I'm pretty sure I can live my life on that simple meal alone! Eric Adams, Eric Adams Flooring Photo: Vegan tacos from by birthday party last week lol:)

WOW what a tough question! I am a big guy and anyone who knows me knows I love to cook / grill and of course eat! If I had to narrow it down to one it would be my grandmother’s spaghetti/homemade sauce and meatballs! OMG!! As a kid I dreamed of it, and could not wait to go and visit because I knew we were eating that meal. As a teenager I used to take the guys on my football team over to their house to eat because she would make enough to feed an army. When I went off to college I would beg her to send it to me in the mail! Now that she has passed away I have the original recipe card it was written on but have never attempted to make it myself. Can’t compare to hers, no way. My mother makes it now from time to time and when we get to visit my mom she will make some sauce and freeze it for me to take home and that stuff doesn’t last a week before it’s all gone again! Makes me hungry just thinking about it. Jason Smith, ICON Plumbing, Heating & Air LTD

Probably not terribly exciting, but...sushi! Kristen L. Evon, Texas Society of Professional Surveyors My favorite meal is and always will be a juicy grilled chicken on top of a salad with a homemade vinaigrette dressing. I like to put everything in a salad: radishes, carrots, cucumbers, snow peas, broccoli, bell pepper, and of course, tomatoes (preferably my own!). Next on the list would be a good, crusty Crème Brule. Although I don’t know how to make one myself (on the bucket list!). Cyndi Wright, Austin Construction News

Austin Construction News • Nov 2016

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The most fun can be had on mediumlight tackle, but battles aren’t necessarily short-lived on medium-heavy tackle either. For comfort sake, though, it’s best to use tackle in the 15-25-lb. class; either spinning or baitcasting type. Many anglers have a tendency to use too heavy a gear when going after bull reds, and this is not necessary or conducive to a sporty challenge. Things to look for when fishing in the fall are diving brown pelicans and seagulls. Birds working over the water means there is bait present and where there is bait, there are fish. Also, fish slicks are popping up throughout the bay system. Positioning your boat up wind from these sheens on the water will give you a better chance of locating where fish are staging.

Riding the bulls!! by Capt. Steve Schultz Sponsored by: Waypoint Marine, Majek Boats, Evinrude Outboards, E-Z Bel Construction, Power Pole Shallow Water Anchor, Aggregate Haulers, ForEverlast Hunting and Fishing Products, MirrOlure, and Columbia Sportswear

OW!!! What a year it continues to be with fall fishing in full swing. Fishing remains excellent with big reds sticking around our bay complex waiting for colder weather to make their run to the Gulf of Mexico. I can’t believe how fortunate we have been this late in the season still catching good numbers of speckled trout also. Most of my charters are coming in with limits of both species with a few bonus flounder or drum to boot. I look for this success to continue through the month of November also.

Wes Miller (Urban Concrete) of San Antonio caught this 48-in. redfish out of a school of more the 200 over-sized reds. Fish was released after a weight and measurement by Steve Schultz Outdoors.

For the past two months we have seen a strong run of bull reds in the Upper Laguna Madre. These reds ranging in the 35 to 48-in. range are so much fun to catch. When fishing for these reds, I usually keep a couple of rods ready with a gold spoon or a soft plastic for quick casting at large schools. There’s no need to beef up your line weight or leader size for these big reds. I use 30 to 40-lb. leader with the 20-lb. braid on my reels. Other than the bull red, there is perhaps no other fish in our bay systems with the exception of an occasional Jack Crevalle that is capable of causing mass hysteria

upon hookup. This is especially so if everyone aboard gets into them at the same time. It’s a fish that will test your tackle and bring out any flaw in your rod, reel or line. If your equipment holds up to the initial run, it will try and find your weak side by running both to the left and right and even under the boat. The bull red, as some well know, can be devious and is notorious for deceiving you into thinking that it has given up and is coming in for the landing-only to find it making another powerful jolting run. Like a raging bull against a matador, he’s not going to be taken without a formidable fight.

Deer season has also started for bow hunters and MLD ranches across the state. I have a hard time thinking about hunting deer while the temperatures are still hovering in the mid 90s. Take advantage of the calm days on the bay to chase these schools of reds while they are still around. There will be plenty of time to pursue your dream buck with the weather gets cooler. Fall fishing dates are still available. Don’t wait until the last minute to book your dates. To schedule your next bay fishing trip give Capt. Steve Schultz a call or text at 361-813-3716 or 361-334-3105 or e-mail him at SteveSchultzOutdoors@gmail. com. Good luck and Good Fishing.

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Austin Construction News • Nov 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 the radio as follows: The Great Outdoors: 5-8 am Saturday on 1300, The Zone, Austin and The Great Outdoors: 5-7 am Saturday on 1200 WOAI San Antonio The Sunday Sportsman: 6-8 am Sunday on 1300, The Zone, Austin All on iHeart Radio

What lurks in the willows?

fter months and months of planning and scheming and working to pull everything together, we finally get to celebrate one of the national holidays of Texas. No silly, not Election Day! I’m talking about the opening day of Deer Season! I live in the Hill Country of Texas where this day is nothing short of sacred. When I was a kid, you could tell your teacher you were going to South Texas to deer hunt with your dad and they would give you an excused absence. I bet that wouldn’t fly today, but it used to! Maybe it still should... If you deer hunt you know that feeling of apprehension you get in late summer when the venison supply in the freezer starts running low. If you aren’t careful you might run out! No more protein as nature intended it to be for you. No more grass fed meat with no extra hormones or additives or supplements and stuff that we are beginning to be afraid of. You might even have to buy beef at the grocery store! Have you seen how much that costs lately?!? Economically speaking, deer hunting and deer hunters provide quite a bounty of benefits. The Texas Parks and Wildlife makes a lot of money from the sale of hunting licenses and from enforc-

Have an Outdoor Story or Photo? Send to: AustinEditor@ConstructionNews.net or call Cyndi at 210-308-5800

side, and then I invited listeners to call in and share their experiences too. I will never forget the turn that radio show took that morning. I know I wasn’t the only one who got a little soggy eyed before we were done. You never realize as an adult just how much something like sharing a hunt with a kid can come to mean until you share your memories with others. Deer hunting is an important right that we should be thankful to have and be ready to defend. It is also a solemn duty to hunt lawfully and humanely. Maybe most importantly it is a responsibility to share the hunting culture (and fishing too), with our young people so they don’t miss out. Man has hunted for food and warmth, clothing and shelter and tools from the beginning of time. Learning the art of hunting has been a time honored rite of passage for our children, to help them achieve self-respect as well as an understanding of their place in the world. It is this hunter’s prayer that we can hunt all the way until the end of time.

Max Milam with stringer

ing the game laws that protect our wildlife resources. Many of the counties with a deer hunting claim to fame take in most of their revenue during deer season. In a lot of places that is cause for celebration in itself! It’s a pretty safe bet that Christmas wouldn’t be nearly as merry for a lot of folks if deer season didn’t bring in plenty of extra work and jobs to rural Texans. The thing I most love about deer season though is the memories. Several years ago I opened up the phone lines on my radio show on the first day of deer season. I shared some of my memories of learning to deer hunt at my Daddy’s

Darren Pawelek, Vice President of San Antonio Inside Story, with his 40-lb. blue catfish.

Submitted to Construction News

Doing it for the children

Flintco has named St. Jude Children’s Research Hospital® as the recipient in the company’s first corporate giving program. Flintco will raise money and awareness for St. Jude through fundraisers, participation in St. Jude events and charitable giving. Pictured, Flintco’s Austin team participated in the St. Jude 5K Sep. 24. –cw

Austin Construction News • Nov 2016

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Submitted to Construction News

Team NAWIC!

Trout’s what it’s all about

Hawaiian breeze

While on a DCA Construction LP fishing trip at Sea Drift in September, Kevin Foltermann caught this gorgeous trout. –cw

Mikayla, Erika, and Haley Kanetzky, daughters of Mike Kanetzky, president of Elk Electric Inc., inspecting the wind turbines in Hawaii. –cw

On Sep. 25, Austin Chapter National Association of Women in Construction (NAWIC) participated in the 18th annual Susan G. Komen Race for the Cure in downtown Austin. –cw

Top, L-R: Nikki Guinn , Biggs Plumbing; Jamie Denton, Mechanical Reps; Jennifer Black, Austin Lumber Company; Jamie Leonard, San Marcos Air; Toni Osberry, AGC; bottom, L-R: Terri Fleming, Rogers O’Brien Construction; Chaundra Callaway, Equipment Depot; and Cindy Richter, Vanguard Fire & Security

L-R: Terri Fleming, Rogers O’Brien Construction, Jamie Leonard, San Marcos Air and Chaundra Callaway, Equipment Depot

Submitted to Construction News

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Austin Construction News • Nov 2016

En-abeled in Austin

Construction News ON LOCATION

Sealing the deal

Tate Jackson is ready to help customers with a big smile at Dealers Electrical Supply in San Marcos. –cw

Abel Design Group is on the ground and running in Austin. Pictured, Ken R. Harry, Simona Furini, Jeffery Abel, Beth Abel and Dare Lovett

ouston-based Abel Design Group, Ltd. (ADG) officially opened an office in Austin on Oct. 3. “We’ve been targeting Austin for a while, and now is the right time,” said Jeffrey Abel, AIA, LEED, managing principal and founder of Abel Design Group. A graduate of the University of Texas (UT) architecture program, Abel is excited to be opening an office in the town of his alma mater. “We’ve identified a gap in Austin for a high-level of service and design that we can fill,” he says. Currently, the Austin office is housed at the WeWork Congress building at 600 Congress Ave. until a permanent home is found. ADG has seen a fair share of growth in recent years. Celebrating its 15th anniversary this year, ADG was recently awarded an AIA 2016 Award for Interior Design, IIDA’s 2014

Mid-Size Firm of the Year, as well as made the Houston Business Journal’s Fast 100 for the past four years and the Best Places to Work list for the past two years. Although this is ADG’s first expansion from the 40-employee Houston location founded in 2001, Patty Fadhouli, ADG director of marketing, says there will be additional new office locations in the future, and the firm is not afraid of acquisitions. In December 2015, the firm acquired Ken R. Harry Associates in Houston. “Ken Harry is a principal here now,” Fadhouli stated. “He and his team have transitioned to the offices of ADG, where they will continue to serve existing and new clients as part of the Ken R. Harry Studio.” Since this is the 15th year the firm has been in existence, Fadhouli says their annual company party will focus on the milestone anniversary this year. –cw

Community design

n Sep. 21, a team of nearly 155 Stantec Austin employees volunteered at CommunityFirst! Village, a project of Mobile Loaves & Fishes and an award-winning project that Stantec provided master planning and engineering services on throughout the past decade. The village is a 27-acre development that offers affordable, permanent housing and a supportive community for the chronically homeless in Central Texas.

But, it’s about more than providing shelter – it’s the sense of home and community fostered by Community First! Village that makes it so extraordinary. The team was among some 8,000 employees participating in Stantec in the Community Day, 450 in Texas. The events were in celebration of Stantec’s focus on giving back to the local community and in support of the firm’s promise to design with community in mind. –cw

Austin Construction News • Nov 2016

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Eagles soar on Oct. 5

he stars came out to shine on Oct. 5 at the Associated Builders and Contractors (ABC) Central Texas Chapter’s annual Excellence in Construction Awards ceremony and dinner at the JW Marriott in Austin. Besides recognition for members who have contributed to the construction industry, safety awards and Safety Training Evaluation Program (STEP) awards, the chapter honored longtime members and celebrated its 40th year of existence in Austin. –cw

Commercial: Less than $5 Million Joeris General Contractors Ltd. JD Abrams Office Headquarters

Safety Award of Excellence Best of the Best Subcontractors BCS Concrete Structures Beckett Electrical Services Lasco Acoustics & Drywall, Inc. Slater Painting Company, Inc. General Contractor American Constructors, Inc. Harvey-Cleary Builders JE Dunn Construction White Construction Company

Commercial: $10-25 Million JE Dunn Construction Capital Commons Office Building

Bob and Peggy Duda Chairman’s Award presented to Rick Slater of Slater Painting Company Inc.

Commercial: $5-10 Million EBCO General Contractor Ltd. Hilton Homewood Suites

Institutional: $10-25 Million Flintco LLC Texas Advanced Computing

Interiors: Acoustical and Drywall Lasco Acoustics Drywall Inc. Southwest Health & Wellness

Institutional: Less Than $5 Million American Constructors Inc. Headwaters School Elementary Expansion

Electrical: Commercial: $2-10 Million Titus Electrical Contracting LP The Millennium Rainey Street

Mechanical: Less Than $2 Million TDIndustries Texas State University Math and Computer Science Building

Renovation: Less Than $4 Million American Constructors Inc. The Gin at Hutto Co-op District

Mechanical: Commercial: $2-10 Million TDIndustries CyrusOne Austin Met III

Institutional: $10-25 Million American Constructors Inc. Tom Glenn High School

Industrial: Less Than $5 Million Flynn Construction Inc. AIDS Central Warehouse/Freezer Addition

Pre-Engineered Building Flynn Construction Inc. Waterloo Swimming

Renovations: $10-100 Million American Constructors Inc. KIPP Austin Public Schools South Campus

Infrastructure: Heavy: Flynn Construction Inc. Texas State University – Bobcat Trail Mall Redevelopment and Utility Upgrade

Multifamily: Up to $100 Million JE Dunn Construction The Corner Student Housing Apartments

Commercial: $25-100 Million Harvey-Cleary Builders Bazaarvoice/Quarry Oaks III

Industrial: $25-100 Million: Flintco LLC The University of Austin Chilling Tower #7

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Austin Construction News • Nov 2016

Eagles soar on Oct. 5, continued

Gold Level STEP Award Mega Projects: Austin Commercial LP ABIA Consolidated Rental Car Facility

Platinum Level STEP Award

Healthcare: $10-25 Million: Hoar Construction Faith Community Hospital

Safety Award of Excellence

2016 Free Enterprise Award Construction Metal Products Inc.

Diamond Level STEP Award

Best of the Best Safety Award of Excellence

No boundaries

ith a golf tournament, sporting clay event, and plenty of other opportunities to network and learn, the 65th annual Texas Society of Professional Surveyors (TSPS) convention and tech expo Oct. 12-15 in San Marcos had a little something for everyone. On Friday evening, annual awards were handed out and guests then enjoyed a night boot scooting to Austin band The Derailers. Congrats to the winners! –cw (Award photos by Bear Gordon)

Chapter President of the Year: Philip Adams, right

The Hugh L. George Memorial Award, presented posthumously to D.G. “Greg” Smyth Sr., is accepted by Mark Logrbrinck, right Young Surveyor of the Year: Shaun Piepkorn, right

Surveyor of the Year: Michael Hoover, left

Vern Wayne Hanan Memorial Community Action Award : Andrew Sikes, left

Austin Construction News • Nov 2016

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Architecture and Engineering Engineers have great impact on world Hernán Jaramillo, PE Bain Medina Bain Inc. San Antonio, TX

n your opinion, what is the state of the local industry right now? It seems to me that there’s quite a lot of construction going on, especially residential. These bond packages are being voted on soon and I think that the city and state are building more than I’ve seen in previous times. I was talking to some other people and I think they’re building different types of projects: more parks and a lot of intersection work to improve accessibility for ramps and things like that. Also, the school districts are growing. I see construction is quite robust in San Antonio right now. Do you feel like people and the city are investing in more quality products? I don’t know what people are doing inside their homes, but it may relate to how the population of San Antonio is choosing to spend their money. The people of San Antonio will spend money on projects that raise their quality of life. They will spend money now. If you put a vote up for them to improve accessibility or more parks, they usually go out and vote for those types of things. If people are going out and trying to increase the quality of the city, I’m sure they are trying to improve the quality of their home.

What are the keys to success for people trying to make it in the engineering world? In my industry, we need to protect the people. We need to come up with a design that is safe and will meet the criteria the city, state and federal require. I need to keep in mind drainage, the safety of the users of whatever I’m building. So, when I see a good engineering company coming back, it’s someone who knows what needs to be designed. The city or state doesn’t go back and tell them they need to go back and look at what they’re doing because you’re designing with 2004 criteria in 2016. I think a good engineering company stays up to date on regulation and provides quality to its client. The plans we prepare are made of paper and are pretty light, but a contractor is going to go out there and pour the concrete. We see a lot of return business because we don’t need to go out and tear out a chunk of concrete that was poured the wrong way. What are some of the problems facing your profession? In the engineering field, the biggest thing is finding the personnel. Engineering has been long known for the lack of

engineers we have here. People just aren’t going into those degrees. So a lot of times, in the engineering profession, we have a problem with filling the positions with qualified people. We are responsible for the systems to work every day because those are requirements by state and law. You want a good engineer designing your water systems. We need people that have the schooling and the training. Sadly, engineering is one of the degrees people don’t know anything about and don’t go into it until later. We’re not producing enough engineers here, so other places take advantage of that, which is great, because we have the engineers from other places. That serves the United State pretty well, but it’s also a disservice because we could be filling those jobs with our kids. They’re just not going into it. How do you try to spread the word about the importance of engineers? I go out and talk to a lot of schools. I talk to kids from kindergarten to college when they invite me and want to learn. A lot of times I can relate them to engineering now. I say “Have you seen the show on the Discovery Channel with the big tunnel or does anyone play Mindcraft?” There’s a lot of way to relate to kids about engineering because they see it. They don’t even know it but they’re playing with it. Hopefully, it’s growing. A lot more minorities and women are going into engineering, which is the best profession to go in to. I know I’m biased. You’re going to find a job and create a world that’s better for other people. What is your advice to kids? I tell them, specifically, that I love my job. I love what I do. Building stuff is

amazing. Two million people can live in a little bit of land, purely because of engineering. I try to teach them to love it. It’s freaking amazing that we can create a city with water, food, roadways and a sewer treatment facility on the south side of town. We’re not polluting the water anymore. The city is getting bigger and cleaner. People can live in it. It’s a living organism that we keep up together: engineers, builders, everyone. I try to show them how almost magical this thing is. You have an apartment or house and turn a faucet and it works every time. How many times has it not worked in the last five years? It’s a system of water and pressure underground. It’s crazy. I try to show them how interesting these things are that they don’t even think about. One of the things that tells you how amazing it is, is that you don’t ever think about it. It just works. I also tell them that, living in San Antonio, you’re one of the luckiest people. This is the place to do it. When I grew up and got out of high school, I had no money. My family had no money, but since I lived in San Antonio, I was able to go to 2+2 Program for a third of the price. I did two whole years of engineering there and transferred everything to UTSA and finished engineering for a fraction of the cost and they’re amazing schools! Hopefully, I’m talking to the poorest kid in the class. You can do it. If engineering is hard and it takes you six years instead of four and half, so be it. Do you feel a responsibility to be more eco-friendly since you’re designing something that lasts so long? We will design as green as we have to. There are some people that want to design it with more green space or low continued on Page 17

Virtual Reality among “huge changes in architecture”

Jerry Merriman, President Merriman Anderson/Architects

John Carruth, Director of 3D Visualization Merriman Anderson/Architects Dallas, TX

Dallas, TX

ow would you describe the state of the construction industry in general terms? We consider the construction industry extremely healthy in all of the geographic areas we work in (basically across the country). This is for corporate projects, high-density urban mixed-use projects, renovation projects, high-density housing projects, hospitality projects and industrial projects. Our business has been on a steady increase for the last seven years. What factors are driving this increase? A diversity of projects, substantial equity and financing options for our owners and limited supply for almost all building types are driving this increase. We are seeing owners and municipalities working together on projects that are going to add value to their communities with tax credits, TIF monies and tax abatements. This additional funding often makes the project work financially and allows for new or renovation construction to begin. How has this affected your company

and how you conduct business? The increase in construction has been very positive for our firm. It has allowed us to increase our client base dramatically across the country, which increases awareness about who we are and the quality of work we offer. What are the hot button issues in your industry? Hot button issues right now in architecture and design are the urbanization of projects, financial lending and equity requirements and the lack of educated and experienced personnel in the profession as a whole. What are the major changes in the industry in recent years relating to the type of work you do? Major changes we have seen in the industry are the increased urbanization of developments and projects and the higher density associated with these projects, combined with the increased attention to revitalizing the urban cores of our cities. What is the most significant challenge

your industry faces? The rise in construction costs is the largest issue we face daily. Second is finding the most qualified personnel to allow our firm’s growth to continue. What are the cost increases relating to your industry? Government taxes, increasing cost for providing benefits such as health insurance for our employees and just escalating wage requirements to retain our top employees are the main cost increases in our industry. It’s really not unlike most businesses in our country. How are you dealing with these challenges? Being at the forefront in technology, keeping our marketing efforts at the highest and most sophisticated levels possible and always adding talented staff when the opportunity arises. What is on the horizon for your industry? The architecture industry is always changing and technology is continuing

to play a larger role. The introduction of virtual reality (VR) into the world has already made huge changes in how architecture is being designed, presented and developed, and the trend is not slowing down. The speed of development is increasing and the technology is changing on what seems to be a weekly basis. VR is still in its infancy, but for maa, we have already seen the technology pay off in dividends. Clients, developers and contractors have been able to see conditions, respond on the spot, and, as a group make decisions at a speed we have not seen before. As VR develops, our industry has to stay informed, continue to use any and all tools available to help clients and each other streamline the building process and ultimately create a better building. Merriman Anderson/Architects Inc. (maa) is a Dallas-based architecture, interior design and planning firm. maa offers programming, urban planning, architectural design, space planning, interior architecture/ design, graphic design, LEED/sustainable design, construction document production, BIM/REVIT design, construction observation and 3-D visualization services. –mjm

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Austin Construction News • Nov 2016

Architecture and Engineering A tax deduction worth keeping Russell A. Davidson, President American Institute of Architects (AIA) Washington, D.C.

ach year, as Congress prepares to exit Washington, D.C., for the holidays, a scramble ensues to extend dozens of tax incentives scheduled to expire on Dec. 31. But this year, there’s one in particular that directly affects the design and build industry. And the AIA is pulling out all the stops to ensure Congress keeps it. The Energy-Efficient Commercial Buildings Deduction, otherwise known as Section 179D, enjoys bipartisan support, creates jobs, strengthens energy independence, lessens the impact on the environment, encourages innovation and reduces the burden on taxpayers. The AIA strongly urges Congress to make this deduction permanent. Section 179D was added to the tax code after passage of the Energy Policy Act of 2005. As part of its goal to encourage energy independence, Congress wanted to motivate the private and public sectors to build more energy-efficient buildings. The U.S. Department of Energy esti-

mates that roughly 36 percent of electricity generated in this country each year is consumed by commercial buildings. Improve the energy efficiency of new and renovated commercial buildings, so the thinking goes, and you make a big step toward greater energy independence. What’s even more striking is that both Republicans and Democrats agree on this issue. With the 179D provision, the more energy-efficient the building, the bigger the tax deduction (up to $1.80 per square foot). The statute and regulations measure energy efficiency in three areas: building envelope, HVAC systems and lighting. Essentially, Congress is encouraging building owners to lower operating costs and increase operating profits. Furthermore, 179D is technology neutral. The deduction rewards success; it doesn’t matter how you achieve it. Those decisions are left to the private sector - with no federal dictates or mandates from Uncle Sam. All that’s required is that

Technology is improving for engineers Jeff Taylor, Vice President Freese and Nichols Inc. Houston, TX

ow would you describe the state of the construction industry in general terms? All sectors of public infrastructure including transportation, water and facilities are going strong in the Houston area. In my 35 years in the business, I haven’t seen a time that rivals what is occurring right now. Usually, when one public sector is strong, another is weak, but that’s not happening now. Cities, counties and state agencies are all collectively implementing an unprecedented amount of infrastructure construction.

What are the major changes in recent years relating to the type of work you do? Technology is changing the methods of delivering projects. More streamlined and efficient methods are being used to prepare construction plans. There is also a rising expectation among owners that projects will be problem-free. Client expectations regarding lower budgets and faster schedules are occurring. We are seeing more pricing pressure with the commoditization of engineering - clients are expecting engineering fees and project budgets to be decreasing.

taxpayers obtain an independent certification by a licensed engineer to verify the energy savings, ensuring the energy savings will be real. The Energy-Efficient Commercial Buildings Deduction doesn’t just apply to commercial buildings. It also benefits federal, state and local governments (and affiliated entities such as a public school or a state university). Since they can’t benefit from a tax deduction, Congress allowed government entities to transfer the tax deduction to the designer of the building (typically an architect, engineer or contractor). That allows the designer to strive for the most energy savings in a design, since increased time, equipment and staff are needed to design highly efficient components. Inefficient energy usage is a massive drain on the economy. State and local governments spend approximately $10 billion a year on energy, and school districts spend $6 billion annually, leaving taxpayers stuck with the bill. The 179D deduction makes it easier for schools, along with state and local governments, to improve energy efficiency, resulting in real cost savings and much-needed relief to taxpayers. Taxpayers could benefit even more if the 179D tax benefit were made permanent. The provision has been a lifesaver for many small and medium architecture, engineering and construction businesses. It’s meant keeping and creating thou-

sands of good-paying jobs in the construction industry, which means tax revenue for the government. But the temporary nature of 179D is a problem because the deduction can only be taken in the year in which the building is placed into service. As anyone who’s worked in the design and construction industry can tell you, projects that start and finish in the same year are few and far between. Allowing 179D to expire would effectively pull the rug out from under businesses with projects in the works. Indeed, many small design firms, while unabashed fans of the incentive, have been forced to delay filing taxes while they await the fate of the deduction each year. “The on-again, off-again nature of the deduction hurts us,” notes Martin Dietz, managing principal at Darden Architects of Fresno, California. “It means we don’t do all the analysis required unless it’s approved, so we don’t file our taxes on time. At times we’ve had to delay filing because we didn’t know if the Senate was going to approve it.” In summary, this obscure but innovative use of the tax code to save energy in the built environment is one of those times when government gets it right. Congress can get it even more right by making it permanent. We urge Congress to make Section 179D, the Energy-Efficient Commercial Buildings Deduction, permanent public policy. –cw

What is the most significant challenge your industry faces? There’s a labor market shortfall right now in the engineering and construction community. There is not enough talent to cover all of the work that’s out there.

The Houston area has every single type of infrastructure development, so the broader you make your client base and skill sets, the better you can weather the storms when they occur.

What are the rewards of the industry? People who do all forms of public infrastructure will have a nice stable career for the foreseeable future. This ties into the labor shortfall we talked about - anyone who’s in this business right now will be guaranteed a solid job and career for the next 20 years. What are keys to being successful in your industry? Technical proficiency and client service are the keys to being a successful engineer. Clients are expecting a higher degree of service now more than ever; they want subject matter experts in the work that they’re doing. From a corporate perspective, I’d say diversification of business.

What advice would you give a young person who wants to be an engineer? The younger generation is absolutely more savvy in technology than my generation was, and as they move into decision-making positions, they’re going to demand higher levels of technology, and they’re smart enough to figure out how to apply it. The danger will be that our industry will have to recognize and manage project risk associated with our work, and still know when technology alone does not solve a problem. Freese and Nichols Inc. plans, designs and manages infrastructure projects. It has more than 70 professionals in Houston and Pearland who provide local service to clients throughout Southeast Texas. –ab

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Austin Construction News • Nov 2016

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continued from Page 1 — On the top floor He says his crews of subcontractors are long-term and have the same beliefs. “They have the same work ethic and quality standards I do,” he said. “They know what I expect and I’ll make sure it’s right. It’s my name on it. They send me pictures as they are working because they are proud of their work and like what they are doing.” So far, his biggest challenge has been

hiring more people and learning to let go some. “The business is small but it’s growing really fast,” he said. “Money is not my main concern. I like what I do and I’m proud of it. If you believe that, the money will take care of itself.” Still single, Adams says he loves to travel and his babies are his rescue pup and his business. –cw

continued from Page 1 — Focus on Texas customers based on their local needs. “Our flair and the reason for our continued success is our philosophy to say yes to the local customer,” he explained. “We give our store managers the autonomy they need to work with their customers.” That philosophy translates company wide, according to Myrick, with the HOLT companies offering stellar employees the opportunity to move up at their current location or to another location within the Holt operation. “When we look at potential employees, we look first at their fit into

our culture,” Myrick says. “The Holt family has built their business on a solid leadership based style. Potential employees must be ethical, have an ability to be successful, and a desire to continue to be better. We believe we can educate and train good, quality people to do what needs to be done inside the business.” Myrick has been general manager for Texas First Rentals since January 2015 when he was hired by the Holt team to develop and grow this new arm of the company. –cw

continued from Page 1 — First class glass ensure that the building would be designed in the most economical way while also maximizing productivity and complying with the Lockhart Non-residential Appearance Standards. The north and south ends of the building have large overhead doors aligned to allow for the most efficient means for the delivery trucks to enter and exit the warehouse/manufacturing space. Energy efficiency was also an important aspect of the project. All of the lighting fixtures are LED and the project design includes many large, low-e, clerestory windows to full advantage of natural daylight, said Robert Steinbomer. Other members of the architectural design team were Amy Bramwell and Ben Pruett. As with many projects, Jim Smith says wet weather proved a challenge, but Countywide had a plan for that. “We try to get all concrete poured before we actually build the building,” he says. “That way we can maneuver around on pavement rather than mud. We were

able to work a lot of days most people were sitting around.” Another challenge was met and conquered when there was steel delivery crisis, but Smith says his supplier, Hopson Builders Inc. in San Marcos, came through. “They are good folks,” he says. Smith’s parents, Winnon and Grace Smith, started Countywide Builders in 1971 in Lockhart and the company remains located there. Smith’s son, Winn Smith, is project manager at the company. The company has five employees and specializes in industrial and commercial building. The company also handles design-build, commercial remodeling, historical renovations, land development, sitework, and demolition projects. In the last year, Countywide has built two highly-technical dialysis centers for Fresenius Kidney Care and several doctor’s offices. –cw Photography by Andrea Calo

There is plenty of room in the new facility, as shown in this ribbon cutting picture at the grand opening.

New GM for HOLT Crane

OLT Crane & Equipment® announced that David Worsham has been named general manager. Based at the company headquarters in San Antonio, Worsham has been with HOLT Crane & Equipment since its inception in 2008. Prior to HOLT, he spent time working in the custom manufacturing and heavy equipment industry. Worsham grew up in San Antonio and graduated from Judson High School. He graduated from Texas A&M University in College Station with a bachelor’s in science degree in environmental design. While in college, Worsham spent his summers working as a Boilermaker. Although the economy was in a downswing when he graduated in 1994, he had a couple of opportunities, he says. “I had a choice between a ground level position with an architectural firm or at a position at a much higher level with a company that built elevated water storage tanks,” he said, He chose the second option and moved to Fort Worth, where for the first time, worked more closely with cranes. He found there was something about cranes that he liked and he started selling cranes in 1998, joining HOLT in 2008. “I’ve always enjoyed working with cranes and I certainly have enjoyed my experience and opportunities with the HOLT family,” Worsham says. “This opportunity presented itself and I felt it was the time to step up and give HOLT and the team my best effort.” Currently HOLT Crane & Equipment

has locations in San Antonio, Houston and Irving, Texas. “Each of these locations and their surrounding territory present great opportunities for growth, especially in the Dallas/Fort Worth area,” Worsham says. “The new location there adds increased parts and service capabilities.” Worsham’s vision is to help the business become the preferred supplier of cranes and crane repair. “The name HOLT is synonymous with success,” he says. “I hope to help build Holt Crane & Equipment to be as well noted for our service and support.” Worsham has been married to Brenda for 17 years and the couple has 14-yearold twins, Steele and Bella, and another daughter, Brittany Haverland and her husband, Corey. They have one grandson, Case, and another one on the way. –cw

continued from Page 15 — Engineers have great impact on world impact development or things like that. When I talk to civil engineers, and they ask if I can cut corners or make it less, we give you what is going to work and make it last for as long as it needs to work. It may not be pretty because we’re engineers. If you want pretty, go get an architect. If you look at the city of San Antonio, and I’m designing something on the north side of San Antonio, I have to make it green so it goes into a basin that cleans the water that goes into the aquifer. This is a question I got asked in a fourth grade class a few days ago. People think we’re painting the world and not saving it. I tell them that if you think about it, when your parents were here in San Antonio, all your sewer pipes were going straight into the river. Straight to the river. We decided, as a city, to build ourselves a nice, two river sewer treatment facility, that I happened to tell them was your third intestine, and now the water that gets released from the sewer treatment facility is cleaner. I would say that we’ve made leaps and bounds into making the city cleaner. No one even knows. They should be hav-

ing a parade for the sewer treatment facility. The difference from then to today is night and day. No one pays attention to it because it works. We’re doing it every day. The city is going to be looking for those solutions is five years when the city’s population is more. People are going to be looking for engineering solutions. Just like the ozone problem and we engineered air conditioners that didn’t put holes in it. In Los Angeles, there was so much smog people were dying of asthma, so they passed a law that you needed a catalytic converter. It wasn’t because there was less people, it’s because someone made a catalytic converter. I tell the kids that you need to grow up and find solutions for it. We’re not going to move out to open land and live off the land. We would really ruin the world. If we live in the city, the denser, the better. We leave the outside place for nobody. The closer people live together, the greener humans are. If everyone gets five acres, we’d ruin the country. I don’t have to build roads or pipelines to you all. I just need one pipeline to your building. –cs

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Austin Construction News • Nov 2016

Texas-sized turnout

oofing industry professionals turned out in force for the Roofing Contractors Association of Texas’ (RCAT) 41st annual Conference & Tradeshow. Held Oct. 12-14 at Grapevine’s Gaylord Texan Resort and Conference Center, the event is heralded as the largest in Texas for the roofing industry. RCAT uses the event as a platform to exhibit roofing and waterproofing equipment and materials, provide a venue for contractors, exhibitors and potential new product providers to network, offer educational programs and enhance contractor knowledge of the roofing industry. Attendees were welcomed with an exhibitor-tradeshow, educational seminars, a golf tournament, a reception, and a National Women In Roofing (NWIR) luncheon. An awards and business meeting luncheon, which included the installation of RCAT’s newest board members, was a highlight of the event. –mjm

A special treat

National Roofing Contractors Association

exas Disposal Systems once again graciously hosted the Associated General Contractors (AGC) Austin Chapter’s annual fish fry at its amazing exotic game ranch in Buda Oct. 6. Over 500 members and their families enjoyed bus tours where they saw plenty of species, some endangered, collected from around the world. Other fun events included the chance to dunk Joeris General Contractors’ Curtis Cline, live and silent auctions, washers and plenty of great fried fish with all the trimmings. –cw Rex Webb, Patriot Erectors, with his grandchildren, Bowen and Campbell Webb

Southern Shingles

Fritz Price with Bartlett Cocke General Contractors attempts to dunk Joeris General Contractors’ Curtis Cline at the dunking booth.

Hensel Phelps: Jason Fletcher and Bryce Kellerman

National Women in Roofing

Cordeck

Koetter Fire Protection: Linda Ortiz and Jerry Ortiz

AGC-CLC members Devin Bromley, Joeris General Contractors; Caroline Hall, Chapman Firm; Tamara Sabinas, Spire Consulting Group

The new board members are sworn in.

Association Calendar

Content submitted by Associations to Construction News AIA

TACA

American Institute of Architects

TX Aggregates and Concrete Association

Nov. 3-5: Texas Society of Architects 77th annual Convention & Design Expo at the San Antonio Convention Center. Theme is Convergence. Registration required – onsite registration available. For more info: https://texasarchitects.org/v/ about-the-annual-convention

Nov. 15: TACPAC Golf Tournament, noon tee time at Texas Star Golf Tournament in Euless, TX. Check here for more information: www.regonline.com/builder/ site/?eventid=1880477

NARI

TX Statewide Construction Credit Group

Nat’l Assn. of the Remodeling Industry

Nov. 17: Trip to the Capital to meet with Legislators and Congressmen in regards to the new Lien Overhaul Bill being presented to the House. For more information, or to attend, contact lorid@lonestarmaterials.com.

Nov. 10: CotY Awards, 6pm, Norris Conference Center. Call Kayvon at 512-3752601 for more information.

SFPE Society of Fire Protection Engineers

Austin-San Antonio Chapter Meeting Nov. 16: Firestop Selection, Installation and Inspection at Intertek in Elmendorf, TX from 10am-3pm.

The Beck Group: David Haggerty, Stephen Mery, Wes Hall

JD Holzheauser, Peckar & Abramson PC; Jason Fletcher, Hensel Phelps; Danny Rothe, Bartlett Cocke

TSCCG

Hill & Wilkinson General Contractors: James McDowell, Ryan Shipley, Danny Elmore, Stephen Homiak, Allen Kim

JD McDonald, ThyssenKrupp Elevators; Charlie Hamilton, Rogers-O’Brien Construction; Denny Densmore, Rogers-O’Brien Construction; Rolly Burke, ThyssenKrupp Elevators

Austin Construction News â&#x20AC;¢ Nov 2016

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Austin Construction News â&#x20AC;¢ Nov 2016