Houston November 2016 by Construction News

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Volume 13

Number 11

NOVEMBER 2016

The legacy continues

Going, going …

L-R: Ken Taylor, Chris Taylor, Joe Watkins, Paul Taylor and Daniel Weber

Upcoming auctions are scheduled for Houston Nov. 9-10, El Paso Nov. 22, and Fort Worth Nov. 30-Dec. 1. itchie Bros. was established in 1958 belief that if you “Treat a customer like a by brothers Ken, Dave and John friend, he will be a customer for life.” Ritchie in Kelowna, BC, Canada. “Customer service is everything at The company expanded into the United Ritchie Bros.,” says Dolan Aucoin, sales States in the 1970s and today has opera- director. “We sell a service and rely upon tions in 19 countries, including 44 auc- repeat business, so a strong passion for tion sites worldwide. customer service is a major driving force Today, 22 of the Ritchie Bros. auction in helping us grow. When we hire emsites are located in the United States, in- ployees we are looking for people with cluding two in Texas in Houston and Fort that same passion for customer service. Worth. In 2015, Ritchie Bros. sold approxi- “We don’t have any patents, we mately $4.25 billion of equipment aren’t selling a product, our employees through 345 unreserved auctions and its are our secret sauce: they make us who online equipment marketplace Equip- we are. We live and die by the service mentOne. they provide our customers. Our employ The company prides itself on cus- ees are our most important assets. tomer service and quality employees, According to Aucoin, Ritchie Bros. is harking back to co-founder Dave Ritchie’s continued on Page 18

ir Depot Air Conditioning has roots going back to 1977. Owner Kenneth Taylor purchased the company in 2004. According to Taylor, the company has grown from between eight percent to 12 percent every year since 2004. “We had a wet spring this year,” Taylor said. “It put a damper on the usual activity that happens in the spring. “I think another ongoing pull on our industry is the local economy in the Houston area has been down because of the oil industry. People are more frugal these days.” Air Depot Air Conditioning has operated at its current location at Cypress North Houston Rd. for six years.

Taylor says his favorite part about being a company owner is seeing the growth of the city and being able to meet and talk to the people who help make it happen. “My brother Paul was a very key individual at our organization and had a tremendous amount of experience,” Taylor said. “As he got older, he decided it was time to retire. Many of his duties were assumed by my son, Chris. Chris is the general manager now. These days I am trying to groom Chris to get him ready for my position which is not too far down the road.” Air Depot Air Conditioning has an annual Christmas party where employees continued on Page 18

Good eats ahead

ort Bend County residents can now dine at a new Mexican restaurant in Richmond. Suntech Building Systems Inc. completed the El Rancho Mexican Restaurant. The owner is Marciel Herrera. Jairo Romeo was the project manager, Tim Rogers was the project superintendent and the architect was Treadway Architects Inc. “This is a large building with high visibility from Highway 59 in a great location within a densely populated area,” Romeo said. According to Romeo, the primary exterior construction materials used for the 7,376sf new construction project were concrete, metal and steel structure, stone, brick and plaster. Interior materials included wood and stucco with ceramic and terracotta finishes.

“The major challenge we met and overcame was to complete the project within the original timeline even though there were more than 70 rain days that occurred during the project schedule,” Romeo said. He says the construction team had a strong working relationship with the owner through out the project. “Our core focus is retail chain customers,” he said. “We really like to get to know our clients and learn how best to serve them during the project and in the future.” Founded by Doug Larson in 1985, Suntech Building Systems is a general contractor headquartered in Houston and also has offices in New Braunfels and Dallas. The company’s core business is ground up retail, which includes restaurants, fuel and retail work. –ab El Rancho Mexican Restaurant

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Houston Construction News • Nov 2016

A passion for cabinetry

In memoriam Wayne Jordan Smith Sr. passed away Oct. 15, 2016. He was born in Houston on Sept. 26, 1936 to Charles (Bill) Roland Smith Sr. and Maurine Bokemeyer Smith. Smith married Sybill Marie Clifford. Smith was an electrician, and with his wife, founded Wayne Electric Inc. on Jun. 9, 1975. Wayne was active in Local 716 and strongly supported the quality and education of union electricians. –ab

Ryan Brooks has owned his company for 18 years.

wner Ryan Brooks, Brooks Cabinetry has worked in the construction industry for more than 26

years. “When I was 14, I learned how to do plumbing work,” Brooks said. “I stayed in construction because I like to see smiles on people’s faces after the job is completed. That is the best satisfaction to me. “I became interested in cabinetry after I gained experience doing trim work and framing houses.” According to Brooks, business has been good at Brooks Cabinetry for many years. Hobbies Brooks enjoys are going hunting, going to baseball games, camping, fishing, four wheeling and listening to music. He loves spending time with his wife and children on the weekends. Brooks says his ultimate goal is to continue to work hard so he

can build a place out in the country for his family. “I have completed a few commercial projects lately,” he said. “I recently built the cabinets for a storage company in Houston.” Based in Tomball, Brooks Cabinetry builds custom cabinets for residential and commercial projects. –ab

One of Brooks Cabinetry’s projects.

Houston Construction News • Nov 2016

Page 3

Submitted to Construction News

On board!

Industry FOLKS Carlos Flores Inside Salesman Fastenal

H 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

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elping walk-in customers and processing orders are a few responsibilities Carlos Flores has working as an inside salesman at Fastenal. “I also go out and deliver to customers during the week as well,” Flores said. “ Flores has worked at the company for five months and has liked getting to know his co-workers. “I have worked in sales at a previous job but this is my first job working in sales in the construction industry,” he said. “I love interacting with customers and making sure they are all set and happy.” Born in Houston, Flores said he grew up in the Spring Branch area. Flores attended Cypress Ridge High School. He played the left field position on the baseball team and the right tackle position on the football team. During school he did an internship at Advanced Piping Products where he did office work, filing and also worked in the warehouse. “I worked at a local YMCA during my senior year in high school,” he said. After attending the University of Houston for a semester, Flores decided college wasn’t for him so he began working right away. “If a young person wants to get in sales, my advice is to get into a busi-

ness program,” he said. “Find a good company where you can work in inside sales. Get your feet wet and then start moving towards working in outside sales.” Watching football is one of Flores’s favorite hobbies. He says he loves all Houston sports teams. “Lately I have really been into mountain biking on the weekends,” he said. “The best place I have found to go mountain biking in Houston is Memorial Park since it has both easy and difficult trails.” If Flores could go mountain biking anywhere in the United States, he said he would love to go to Utah. “Utah has flat lands and huge canyons,” he said. “I am sure it would be awesome!” When the weather is good, Flores says he also likes to go kayaking at the Guadalupe River in San Marcos. “One day I want to go to Colorado so I can go white water rafting.” –ab

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Houston Construction News • Nov 2016

What were your responsibilities at the company in the early days? I mostly did manual work and did repairs on the machines in the shop. My cousin also worked at the company at the time. He taught me how to repair the equipment.

Hugo Palencia Owner Painters Hardware Corp.

ugo Palencia spends his work week interacting with painting contractors, selling parts and repairing commercial paint equipment. “Business has been up and down over the years,” Palencia said. “If the construction industry is doing good, so are we.” The company is celebrating its 30th year in business in 2016. “To stay in business for three decades, you have to be honest and provide fast and good service,” he said. “It is so important to build positive relationships with your customers.” Established in 1986, Painters Hardware Corp. sells parts and services the painting machines used by painting contractors. Where are you originally from, Hugo? I was born in Mexico and came to Houston in 1982. I have really enjoyed living in the Houston area all these years. Did you go to high school in Houston? Yes, I graduated from Klein Forest High School. I was involved in the French Club during school for a semester. It was interesting to me to learn French. I still know a few French words and phrases but I am not fluent. Did you have a job after school while you were still in high school? Yes, I worked at a Jack in the Box restaurant after school and on the weekends. I started cooking hamburgers on the grill and worked my way up to crew leader. I began training for assistant manager but then I decided I didn’t want to work in the restaurant industry. What was your first job after high school? I worked as a helper at a local painting company for more than a year. I learned what kind of parts and equipment painting contractors need for their jobs.

Have you seen the equipment change over the years? Yes, the technology on the equipment has changed. There used to be more mechanical equipment and today there is more electronics and control boards on the equipment. Computers have made it easier to find parts customers are looking for when they visit us. How do you stay up-to-date in your industry? I talk with the folks at paint stores. Most of the paint stores in Houston know us. Whenever they have a customer that needs a repair or a part, they send them to us. What advice would you give a young person who wants to work in the construction industry? First of all, you have to be mechanically inclined. I learned a lot by reading different manuals and following directions on how to rebuild the machines. It helps to have the right tools to do your job efficiently. You can’t do it just with a pair of pliers. Sometimes it takes special tools to make repairs. What qualities do you look for in a good mechanic? It is important to be dependable and show up to work on time. Work hard and get the job done. How did Painters Hardware Corp. celebrate the 30th anniversary? We had a barbecue at work on a Friday afternoon. What is rewarding about your job? One of the main things I like about my job is there is always steady work. There is always going to be work here. I like how I know I will work Monday through Friday and I’ll take Saturdays and Sundays off. Why do you like working in the Houston area? The economy is the best there is in the country that I can see. Houston is a great city to make a living. Do you have any children? Yes, I have three grown children. My oldest daughter, Ally, works at a veterinary clinic, my middle daughter, Stephanie, is going to college and my son, Victor, is working in Houston. They all live in the Houston area, which is nice.

Construction News ON LOCATION

Hugo Palencia loves riding his motorcycle after a long day at work.

They come visit me every once in a while, if they catch me at home! Do you have any grandchildren? Yes, Ally has a 5-year-old son named Derek. What are a few of your favorite hobbies when you are not at the shop? I am always training for a marathon. I love running in marathons in Houston or in Austin, San Antonio or Dallas. I have participated in 10 marathons here in Houston. The marathons I run in are 26.2 miles. After work, I like to run a few miles at a local park or my neighborhood for exercise. Whenever I get the chance, I like to go mountain biking too. Sometimes, I get out of the city and go kayaking at a local lake. I also ride my motorcycle on the weekends with my friends. Where do you like to ride your motorcycle? I have been to the Hill Country many times on my motorcycle. Outside of Texas, I have been to Arkansas, North Carolina and Colorado. Have you participated in any marathons outside of Texas? I haven’t yet. I have wanted to run in a marathon in another state but it is time consuming. Where do you like to go kayaking with your friends? We like to go kayaking at Lake Conroe, Lake Livingston, Lake Somerville and down at the coast near Kemah. Kayaking is great upper body exercise. Have you traveled outside of Houston lately? It has been a while since I traveled since I have been so busy at work.

A few years ago I traveled to Lake George, CO, which is east of Colorado Springs. I rode my motorcycle there to visit a friend. I spent about a week in Lake George. If you could go on a trip again, where would you like to go? I’d like to go back to Colorado to visit my friend again. The mountains are beautiful! It would also be nice to visit California since I have never been yet. I have a brother who lives in California, so maybe I can visit him one say soon. He lives in Fresno. I heard California has nice roads so I’d like to ride my motorcycle there. How long have you been riding motorcycles? I began riding motorcycles in 1988. The motorcycle I am riding now is a CBR 600. Do you like to cook in your free time? Yes, I like to cook when I can. One of my favorite dishes to make at home is green enchiladas. What kind of music do you listen to? I love listening to all kinds of music. The last memorable concert I went was Nine Inch Nails at the Toyota Center in Houston in the early 2000s. Who would you like to see play in concert one day? I’d like to see Guns & Roses now that they are on tour again. I missed the Guns & Roses concert in The Woodlands this year. What are your plans for the future? We aren’t planning to expand anytime soon. We like that we are a small company. In the future, if we get more business then we may hire more people. –ab

Construction News ON LOCATION

In the groove

Making the right selection

Anibal Vargas has a productive day at Vargas Wood Products in Houston. The company provides custom moulding work. –ab

Ginny Knauff handles sales and marketing at QDI Surfaces in Houston. The company supplies natural stone materials. –ab

Houston Construction News • Nov 2016

Page 5

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

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

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Houston 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

Bustling activity

Turning of the soil

McCarthy Building Companies Inc. broke ground on the $35 million Bayport Wharf 2 in August. Bayport Wharf 2 will include 670 linear ft. of new wharf for a container offloading facility that includes structural concrete, an elastomeric fender system, new utilities, electrical service, concrete pavement, crane rail system, electrical power trench and cable horns. –ab

A groundbreaking ceremony took place for a new 30,000-sf church building for Sacred Heart Catholic Church in Conroe Aug. 30. Brookstone is the GC and Ziegler-Cooper Architects is the architect. Construction is scheduled to commence in early 2017. –ab

Houston Construction News • Nov 2016

Page 7

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

Post Incident Drug Testing 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.

Construction News ON LOCATION

Rising star

Rafeal Moreno looks forward to the week ahead at Cypress-based T-Star Sawing & Drilling. –ab

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

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

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Houston Construction News • Nov 2016

Where legends are built

ecognizing Houston’s best projects and the men and women who built them, The Associated Builders and Contractors (ABC) Greater Houston Chapter held the Excellence in Construction Gala at the Wortham Theater Oct. 20. Former NFL running back and sports broadcaster Spencer Tillman was the guest emcee. Projects were evaluated by local owners, architects and engineers on safety, execution of design, craftsmanship, attention to detail, installation and other considerations. –ab Congrats to the winners! Heavy Industrial Maintenance/Small Cap: Craig & Heidt Inc., Lyondell Maintenance Heavy Industrial Mega Project: CB&I, Oxy Ingleside (Ethylene)

Light Industrial: D.E. Harvey Builders Inc., FMC Technologies Campus

Commercial $50 - $100 Million: Hoar Construction LLC, Baybrook Mall Expansion

Commercial Other: SpawGlass Construction Corp., Cane Island Amenity Village

Commercial Under $50 Million: Austin Commercial, University of Houston Guy V. Lewis Basketball Development Center

Healthcare: Hoar Construction LLC, Faith Community Hospital

Heavy Industrial: The Mundy Companies, Structural Steel Refurbishment

Commercial Over $100 Million: D.E. Harvey Builders Inc., Five Oaks Tower/BHP Billiton Tower

Other Specialty Construction – Industrial: Holes Inc., Sasol Chemical Unit 225 Dismantling

Other Specialty Construction – Commercial: Oxford Builders Inc., Cane Island

Sitework Landscaping and Finish Interior: Camarata Masonry Systems Ltd., Energy Center III and Prairie View A&M Agriculture and Business Multipurpose Building

Electrical – Industrial: ISC Constructors LLC, NAG Temporary Facilities For Site Preparation Phase 3 Project (SP3)

Finish Interior: GMi, Cyrus One Data Center 21

Best of Houston Award: D.E. Harvey Builders Inc.

Interior: Turner Construction, Confidential Client Airport Lounge at George Bush International Airport

Houston Construction News • Nov 2016

Page 9

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

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.

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. 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

Submitted to Construction News

Bait and hook

L-R: Glenn Pitman, Kirby Pitman, David Aufmuth and Phil Jackson, Pitman Construction, caught redfish in San Leon in late September. –ab

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 de-

ceiving 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. The most fun can be had on medium-light 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. 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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Houston 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 enforcing the game laws that protect our wildlife resources. Many of the counties with a deer hunting claim to fame take in most

Max Milam with stringer

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

Half or Full Day Fishing Trips All Bait, Tackle & Equipment Furnished Your catch Filleted and Bagged for You

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season. I shared some of my memories of learning to deer hunt at my Daddy’s 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.

Furnish your TPWD Fishing License & Refreshments, and WE DO THE REST!

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

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

Shine on

eith Blahuta and his wife Ammie, Hudson Building Systems Ltd., participated in the Rise Shine & Shoot Sporting Clay Tournament held at the Westside Sporting Grounds in Katy in September. Teams competed for 1st, 2nd and 3rd place prizes, took part in a silent auction and raffle give-a-ways as well as enjoyed lunch provided by Tony Mandola’s and Laurenzo’s Restaurant.

Other companies involved in the event included Andrews Myers, W.S. Bellows, Building Concrete Solutions, HD Supply, Hines, Mustang Cat and Republic Waste Services. The tournament benefitted the Rise School of Houston, a pre-school preparing non-typically developing children and their peers for main stream kindergarten. –ab

Keith Blahuta and Ammie Hudson-Blahuta were co-chairs at the Rise Shine & Shoot Sporting Clay Tournament.

Congrats to Larry McCarty, Hines, (left) who won the 20-gauge rifle. He was a member of Hudson Building Systems Team 1.

Houston Construction News • Nov 2016

Page 11

Submitted to Construction News

Baffin Bay bound

Filling up the bucket

All-Tech Fuel Systems employees went fishing at Baffin Bay with customers in late September. –ab

L-R: Lucio Riucon and Evan Reed, Graves Winlectric, had a great time fishing at Lake Conroe in September. –ab

Submitted to Construction News

Fun at the lake

Reelin’ in flounder

Halff Associates Inc. Conroe location employees and their families recently went boating and tubing on Lake Conroe. –ab

Jose Fonseca, Fonseca Plumbing, caught these flounder in East Matagorda. –ab

Submitted to Construction News

Windy sunset

Resourceful wrapping

Houston Construction News editor Abby BeMent and her husband Alex enjoyed the scenery on a trip to Beach Haven, NJ in September. –ab

Have you ever wondered how to wrap a Christmas or birthday gift for a hunter or fisherman in your life? Look no further. Your extra Construction News Great Outdoor section papers and duct tape. –ab

www.constructionnews.net publishing the industry’s news

Texas Style

   

San Antonio Austin South Texas Houston

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Houston Construction News • Nov 2016

Submitted to Construction News

Construction News ON LOCATION

Pink Out Day

Rock steady

Trevor Caka, sales representative, sells natural stone veneer to new and existing customers at Hill Country Rock. –ab

Submitted to Construction News

Cutting ribbons

Johnston LLC employees wore pink to the office for Breast Cancer Awareness month Oct 14. –ab

Kirksey Architecture architects joined Houston Community College District representatives at the grand opening of the new Stafford Campus Workforce Building in September. –ab

Houston Construction News • Nov 2016

Page 13

What is your favorite meal? I always like having chicken or beef fajitas for dinner. Frank Gonzales, American Marble Mosaic Co. Inc. My father’s chicken fajitas and carnitas are so good and I’d have to say it is my favorite meal of all time. He always cooks at our family gatherings or birthday parties. In his spare time, he builds flat grills to put over propane burners. He started making the grills for fun several years ago. He uses them to cook and also gives them out to friends and family. Rene Maldonado, Mr. Christopher’s A/C & Heating My cooking has a lot of Spanish and Italian influence. In the summertime, I really like to barbecue meat on the grill. It all depends on what I feel like eating. Enrique L. Zanelli, Choice Trailers, Choice Equipment & Choice Excavation and Construction Barbecue! Cyrus Wagner, Gulf Side Overhead Door Inc. I’d have to say my favorite meal is gumbo, shrimp and crab dishes. Every once in a while employees and I will participate in seafood grill-off events. It is fun! Troy Alexander, Alex’s Air Conditioning Inc. I like a nice steak dinner. I have mastered how to cook steak in recent years. When my husband and I have relatives over at our house, they always want me to cook steak. Erin Hooper, Gray-Walker Inc.

I enjoy having barbecue on the weekends with my friends and family. Javier Vega, HCL Mechanical Services

Partee time

urner Industries and Holes Inc. were the 1st place winners at the Associated Builders and Contractors (ABC) Houston Chapter Fall Golf Tournament at Wildcat Golf Club Oct. 3. The event raised $13,300 for the ABC Scholarship Foundation. –ab

My favorite meal is having pizza with my kids! Jennifer Corrales, The Yard Depot I love my wife’s traditional Mexican dishes. That is my all time favorite food! Her passion is cooking. Jorge Jimenez, S & J Fasteners I like to cook when I can. One of my favorite dishes to make at home is green enchiladas. Hugo Palenica, Painters Hardware Corp. A meal I make with the fish I catch at the bay! Phillip Muse, Phillip Muse Cabinetry Turner Industries

My favorite meal my wife cooks is shrimp soup. It is so good! Juan Perez, Statewide Services Texas barbecue and the fixings is my favorite meal. My family and I love having barbecue cookouts when one of us has a birthday. Ed Bruce, JE Construction & Remodeling Enchiladas, fajitas and other Tex-Mex dishes are my longtime favorites. Jorge Vazquez, Bravo U-Bolts & Fasteners Inc. I always like a good fish fry! Tommy Cloy, MWS Inc. Margherita pizza!

Holes Inc.

Abby BeMent, Houston Construction News

Gone fishin’

Submitted to Construction News

Great aim

Congrats to Brian Clark (right) for winning the 1st Place Individual award at the 3rd annual Houston Area Glass Association (HAGA) Clay Shoot at American Shooting Center Oct. 12. –ab

Submitted to Construction News

Preserving the beach

ouston area subcontractors cast their lines at an annual Fall Fishing Tournament in San Leon Sep. 30. After the tournament, awards were announced at the TopWater Grill. The American Subcontractors Association Houston Chapter (ASA-HC) held the event. –ab Congrats to the winners! 2nd Place: Berger Iron Works 3rd Place: Astro Fence Co.

American Society of Civil Engineers (ASCE) Houston Chapter members participated in the Galveston Beach Cleanup Sep. 24. Volunteers threw away trash they found along the beach. –ab

1st Place: MAREK

1st Place Women's: Big City Access Trout winner: Robin Webb, Big City Access Redfish winner: Kirby Pitman, Pitman Construction Big ugly winner: Phillip Soloman, Briggs Equipment Flounder winner: Randy Voyles, Kauffman Co. Fire and Life Safety

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Houston Construction News • Nov 2016

No boundaries

World of welding

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

iller and Hobart hosted the 3rd annual Welding and Heating Technology Conference at the ITW Welding Technology Center in Houston Sep. 21. The event featured educational seminars with keynote speakers, panel and roundtable discussions and live demonstrations.

The Hugh L. George Memorial Award, presented posthumously to D.G. “Greg” Smyth Sr., is accepted by Mark Logrbrinck, right

Attendees included pipe fabricators, general fabricators, general and mechanical contractors, manufacturers and welding and gas distributors networked at the event. Folks also attended an American Welding Society (AWS) Houston Chapter dinner and presentation featuring guest speaker Marcus Luttrell. –ab

Young Surveyor of the Year: Shaun Piepkorn, right

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

Surveyor of the Year: Michael Hoover, left

Mike Lang, Fluor Corporation, gives a presentation about success in the construction welding market during the conference.

Texas-sized turnout

Industry FOLKS Adam Weaver Assistant Estimator Houston Commercial Painting

ssistant estimator Adam Weaver creates bids at the computer at Houston Commercial Painting. He has worked at the company for almost a year. “Every now and then I go out in the field to measure a job but I spend most of my time at the office,” Weaver said. “I have learned quite a bit about estimating during my time working at the company.” Raised in the Katy area, Weaver attended James Taylor High School. He played the offensive tackle position on the varsity high school football team. “One of my first jobs while I was still in high school was working as a delivery driver,” Weaver said. “I learned about all the different roads and highways in Houston.” Weaver says his stepfather works as an electrician and is the only family member he has who works in the Houston construction industry. After high school, Weaver signed up to take college classes at University of Texas at San Antonio. He graduated with degree in Business and a minor in History in 2012. “In college, I worked as a cook at Chipotle Mexican Grill,” he said. “I also worked the front line and did meal prep.”

Marcus Luttrell speaks to the crowd.

Weaver says when he graduated college, he decided he wanted to move back to the Katy area to be close to his family and friends. “The Katy area is growing and has many new businesses and restaurants now,” he said. “There is more entertainment coming to the area which is nice to see. I am glad there will be more things to do on the weekends.” When Weaver is not working, he likes watching the Dallas Cowboys on TV and going out with his friends. “I haven’t made it up to the AT&T Stadium to see the Dallas Cowboys in Arlington this year yet,” he said. “I was able to go to a game last year. My friends and I are going to try to go again before football season ends.” In his free time, Weaver also likes to listen to music and reads after work and on the weekend. He says the last good book he read was Inferno by Dan Brown. “I look forward to expanding my estimating skills here at Houston Commercial Painting,” he said. “I’ll stay here as long as I can!” –ab

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. State Roofing Company’s John Giffin was honored with the Curtis Blackwell Memorial Award. –mjm

State Roofing Company’s John Giffin (left) receives the Curtis Blackwell Memorial Award.

Conner-Legrand

The new board members are sworn in.

Houston Construction News • Nov 2016

Page 15

Architecture and Engineering 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.

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. 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.

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 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

Virtual Reality among “huge changes in architecture”

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

Jerry Merriman, President Merriman Anderson/Architects

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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Houston 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

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 engineer-

ing 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 re-

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

sponsible 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.

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.

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

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 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 continued on Page 17

Houston Construction News • Nov 2016

Page 17

Association Calendar

Round-Up

Content submitted by Associations to Construction News

AGC Associated General Contractors

Nov. 3: Member Mixer For more information call 713-843-3700

AIA American Institute of Architects

Nov. 5: Texas Medical Center Walking Tour Nov. 7: WiA Speed Mentoring Nov. 12: Houston Heights Bicycle Tour Nov. 19: Montrose Walking Tour For more information: www.aiahouston. org

ASA American Subcontractors Association

Nov. 18: Schmooze Mingle “Meet the GCs” Nov. 17: General Lunch meeting For more information call 281-679-1877

ASCE American Society of Civil Engineers

Nov. 4: Tour: Pavestone Plant Nov. 15: November Branch meeting, 5pm, HESS Club, 5430 Westheimer Rd. For more info: www.ascehouston.org

CFMA Construction Financial Management Assn

Nov. 9: Membership meeting, Nov. 9, Sheraton Brookhollow, 3000 North Loop West Freeway For more information visit www.houston. cfma.org

CSI Construction Specifications Institute

Nov. 10: Frameworks Factory Tour & Food Truck, 3pm, 4800 W Greens Rd. #200 Nov. 28: Monthly Chapter meeting, 5:30pm, The HESS Club, 5430 Westheimer

FPA Foundation Performance Assoc.

Nov. 9: Monthly meeting, 5pm, Speaker: John Clark, MS, PE., Clark Engineers For more info: www.foundationperformance.org

IEC Independent Electrical Contractors

Nov. 16: Monthly meeting For more information call 713-869-1976

MCA Mechanical Contractors Association

Nov. 9: Membership meeting, 11:45am, HESS Club For more information: 281-440-4380

NARI Nat’l Assn. of the Remodeling Industry

Nov. 15: End of Year meeting, 11:30am, Cavatore’s Italian Restaurant For more information call 713-955-6210

NAWIC

Raba Kistner Inc. has promoted Kristine Thomas to proposal coordinator for the Houston area. In her new role, Thomas will support marketing efforts in Houston and Freeport, while continuing to provide services to the entire Raba Kistner enterprise. Thomas attended University of the Incarnate Word in San Antonio.

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 Submitted to Construction News

Going the distance

Nat’l Assn. of Women in Construction

Nov. 11-12: South Central Region annual Fall Conference For more information visit www.nawichouston.org

PHCC Plumbing-Heating-Cooling Contractors

Nov. 9: Member Lunch, Annual Food Drive, 11:30am, Saltgrass Steakhouse, I-10 & Shepherd For more information: www. gulfcoastphcc.org

TSCCG Tx. Statewide Construction Credit Group

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

Endurance Builders is the GC at the Amegy Bank project in the historical Esperson Building. L-R: Charles Zube, Justin Roberts and Tom Rowland –ab

Construction News JOB SIGHT

continued from Page 16 — Engineers have great impact on world 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 having 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

HOK has recently hired Shane Loggains as a design professional. Before joining HOK, Loggains participated in and managed all phases of projects, including pre-design, schematic design, design development, construction documentation and construction administration. He received B.S. degrees in both German and Architecture from Texas Tech University.

Submissions

Associated Builders & Contractors

Nov. 2: Member Mixer and New Member Orientation Nov. 11: Membership Breakfast For more information call 713-523-6222

Rd. For more info: www.csihouston.org

Round-Up

ABC

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

Can you dig it?

The NEC Construction crew breaks concrete near Pinemont Dr. and Hwy 290. –ab

Construction News ON LOCATION

It takes two

Russell Andrews, lead foreman, and laborer Angel Cortez load the truck with materials at Omega Restoration & Remodeling. Founded in 1989, the company provides residential and commercial construction, remodeling and restoration services. –ab

Page 18

Houston Construction News • Nov 2016

Submitted to Construction News

Industry FOLKS

Texas-style reception

Eddie Martinez Sales Houston Tool & Hoist Co. Inc.

ddie Martinez, Houston Tool & Hoist Co. Inc., has had a long career in the tool industry. He started working at 22. Martinez earned a degree in Accounting and Computer Programing from Rice University. “No one wanted to hire me after I graduated because I had no experience,” Martinez said. “One of my friends at school suggested I become a salesman. He thought it would help that I knew both English and Spanish.” After gaining experience at different tool, fastener and hardware companies around Houston, Martinez began working at Houston Tool & Hoist in June 2014. These days he works in the construction side of the company. He interacts with several customers in the foundation business. Martinez says one day he wanted to design a special shovel. He took his design to a large company and was turned down. “I found a small company in Oklahoma, that decided to help me,” he said. “The shovel has a 54 in. handle. If you are digging under a slab you don’t have to get under the slab, you can dig standing up.” Born in Houston in 1948, Martinez says he is a 5th-generation Texan. He

attended Jeff Davis High School, which is now called Northside High School. When he isn’t at work, he likes to watch football on TV and he loves doing crossword puzzles to keep his mind sharp. “I like anything that has to do with using your mind,” he said. “I am good with figures. I have always liked mathematics. When I was in high school, I liked to play chess with my buddies.” Martinez married his wife Patricia 43 years ago. He said when they dated early on he wrote her poetry. “Patricia has worked at the post office for 36 years,” he said. “She started working at the post office right after she graduated high school.” The Martinez’s have two daughters, Christina and Lydia. They graduated from the University of Houston. Martinez says in the future he wants to continue to work as long as his mind is good. –ab

The Women Contractors Association (WCA) hosted an Elected Official Reception to honor city, county and state elected officials for their public service and leadership at Grappinos Oct. 19. –ab

Submitted to Construction News

Bingo!

Submitted to Construction News

Nice drive

Congrats to Brad Mallory, Chris Underwood, Larry Hough and Isaac Thomas, Ferguson, who won 1st place at the Texas Air Conditioning Contractors Association (TACCA) Greater Houston Chapter Golf Tournament held at Meadowbrook Farms Golf Club Oct. 18. –ab

Smashing good time

ocal air conditioning and heating suppliers and contractors practiced their shooting skills at the annual Shoot Out at American Shooting Center Sep. 30. The Texas Air Conditioning Contractors Association (TACCA) Greater Houston Chapter held the event. Congrats to the winners! –ab Two-Man Flurry Competition: Tie! Team 1: John Monroe and Bob Monroe; Team 2: Mike Williams and Dan Davenport Magnum Division: 1st Place: John Monroe 2nd Place: Brian Weisinger 3rd Place: Mike Williams

High Velocity Division: 1st Place: Mike Davenport 2nd Place: Bob Monroe 3rd Place:Mike Hill Express Division: 1st Place: Kevin Rowe 2nd Place: Jose Zambrano 3rd Place: Ryan Stute

Volunteers from the JE Dunn Construction Houston office served dinner to and played bingo with guests at the Ronald McDonald House Sep. 14. –ab

continued from Page 1 — The legacy continues and their spouses get together for a nice dinner. This year they plan to dine at Perry’s Steakhouse & Grille. Taylor says he doesn’t have many hobbies outside of work nowadays, but he looks forward to traveling more in the future. “When my two boys were young I coached baseball and basketball for them,” he said. “Now that my boys are grown, my older son Chris has his hands full doing the same thing for two of his boys and he also has a third younger son that in a few years will probably keep him

busy coaching for years to come.” Taylor enjoys watching his grandsons developing in these same sports as their dad did. Looking ahead, Taylor says the company plans to continue to provide quality service and installations to customers in the west side of Houston and the surrounding areas. Air Depot Air Conditioning provides air conditioning service, repair and replacement and installations for light commercial and residential jobs. –ab

continued from Page 1 — Going, going … the world’s largest industrial auctioneer, and one of the world’s largest sellers of used equipment for the construction, transportation, agriculture, energy, mining, forestry and other industries. The company currently has upcoming Texas auctions scheduled for Houston (Nov. 9-10); El Paso (Nov. 22);

and Fort Worth (Nov 30-Dec. 1) before the end of the year. For more info, visit rbauction.com. –cw Every year, Ritchie Bros. holds five auctions each at its Houston and Fort Worth sites. It also occasionally holds auctions at offsite locations in Texas.

Houston Construction News • Nov 2016

Page 19

A good-humored night

Creative concepts tects (ASLA) H/GC Section, AIAS University of Houston, Open Architecture HTX/ Living Paradigm, Clark Condon, TBG Partners, RVI, Houston-Galveston Area Council, METRO STAR Vanpool, Texas Tech University Urban and Community Design students, Inprint Houston, rdAGENTS and Falon Land Studio. –ab

ARK(ing) Day 2016 took place in downtown Houston in September. Groups came together to transform street side parking into temporary parklets along McKinney Street next to City Hall. The organizations who participated in PARK(ing) Day Houston 2016 were American Society of Landscape Archi-

The Balfour Beatty Construction team gathers on stage in green costumes.

alfour Beatty Construction Houston hosted their 11th annual Night of Comedy at the Improv Comedy Showcase and Restaurant in August. Employees performed standup comedy routines during two nights. The event originated in 2005 as the brainchild of senior project manager Patrick Stuart Stanley. Balfour Beatty Construction is a commercial construction business. –ab

Clark Condon

Patrick Stuart Stanley

Nov. 10: Frameworks Factory Tour & Food Truck, 3pm, 4800 W Greens Rd. #200

ASLA H/GC Section Teams raised a total of $90,000 for the Faith in Practice charity.

Construction News JOB SIGHT

Right on point

RVI L-R: Hector Martinez and John Carter, South Texas Surveying Associates Inc., do a form survey at a new retail center project on Hwy 90. –ab

Submitted to Construction News

Busy morning Submitted to Construction News

Grand entrance

From its beginnings as A.J. May Inc. in 1938, American Door Products has served the needs of the Houston commercial construction industry with doors, frames and hardware. –ab

L-R: Branch manager Ernie Hernandez and Ashlyn Nolen, commercial estimator, assist customers at the Insco Distributing Airtex location. –ab

Page 20

Houston Construction News • Nov 2016

A gala to remember

L-R: Keith Blahuta; Ammie Hudson-Blahuta; Brook Hudson, Shane Hudson, Wes Hudson, Amanda Blahuta, Serge Hudson and Anne Hudson

udson Building Systems participated in the GiGi's Playhouse Sugar Land Gala that took place at Cross Key Acres in Richmond Oct. 15. Ammie Hudson-Blahuta, business development for Hudson Building Systems, was one of the co-chairs and president of the board. Their friends at Marek, Tellepsen, Skanska,Haworth,SouthwestSolutions, Fast Track Specialties, Tri-Tech/ Global Surveying and the Houston Architects and Engineer Bowling League were supporters of the event. GiGi's Playhouse is a Down syndrome Achievement Center offering free therapeutic, educational and social programs. The event helped raise over $100,000. Hudson Building Systems specializes in the supply and installation of access floor, operable and accordion partitions, commercial overhead counter and sectional doors and medical supports. –ab

Construction News ON LOCATION

Smooth precision

Technician Emilio Sosa, Houston Window Services, measures and cuts glass and mirrors in the shop. –ab

Construction News ON LOCATION

Just ask the pro

Sadie, daughter of Keith Blahuta and Ammie Hudson-Blahuta, enjoys the gala. Office manager Taylor O’Shaughnessy schedules a job at SERVPRO of Katy/Cypress, a restoration services company. –ab