Houston Construction News July 2017

Covering the Industry’s News

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Volume 14

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JULY 2017

Ball of energy

Flooring for a cause

Red Nova Energy is just under two years old and is finding its footing in a big Houston marketplace.

L-R: Gary Sharpe, Tommy Vu and Charlie Adams run Allstate Commercial Flooring.

phone call from a friend needing work done on his apartment complex led to Mariano Santiago and Marcos Belman starting Red Nova Energy.

Santiago had been working in the oil and gas industry when he received the call.

“A friend of mine was the superintendent at an apartment complex and told me if I wanted the job, it was mine,” Santiago said. “I got with Marcos and told him if he wanted to partner up, that we would be 50/50 partners in the company and we went from there.

“We’ve been in business for almost two years, and we have our own office, shop and vehicles. Everything we were making was reinvested back into our company.”

Santiago and Belman started the com-

pany in Oct. 2015 and knew he was going to have to take some hits as he was getting his company off the ground.

“It’s really hard. The first five months we didn’t get paid a dime,” he said. “The apartment complex was a good project but everything we were making was going toward payroll and materials. Since then, we’ve been good and haven’t had any issues. If you want to have a successful business, it’s hard.”

Red Nova Energy is an electrical contractor located in Houston that does a slue of services including communications, phone, lighting, new construction, pole lighting, transformers, and circuit breakers along with other services.

Just a couple of years into business, continued on Page 13

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ehind quick and quality service, Gary Sharpe and Tommy Vu have been giving back to the community and building a successful business.

Sharpe and Vu started Allstate Commercial Flooring in 2008 after years in the industry.

“Right when we started, in 2008, we had an economic downturn That put some pressure on us but we have steadily gained market share over the last 10 years,” Sharpe said. “We had some ups and downs but we’ve become a quite a force in the flooring industry here in Houston.

“Both of us had extensive backgrounds in commercial floorings prior to starting the company. I was an estimator and a sales person. Tommy is an installer.

We wanted to stay in the niche that we already had experience in.”

Charlie Adams joined the company three years ago and is the president of the company.

“Charlie brought a capital-infused investment and handled things such as insurance and contract negotiations,” Sharpe said. “Tommy and I still get and install the work.

“We have built the Allstate Commercial Flooring core beliefs around Christian principles,” Sharpe said. “That includes giving back to the community.

As principles in the company we give as a company and as individuals to a multitude of charities. Youth Reach Houston, Little Footprints Adoption continued on Page 13

Facility facelift

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rairie View A&M just finished up its 2017 season with a record of 20-28 and a winning 8-7 record on its home field. Prior to the season, Alpha Building Corporation renovated the Prairie View softball complex to give the Panthers an updated look.

Superintendent Anthony Nichols has been with Alpha for five years and has been a superintendent for 32 years.

The Prairie View A&M softball complex was a first softball complex for Nichols.

The project, which cost $546,766.21, consisted of expanding the dugouts and installing the press box, backstop netting, bleachers, vinyl coating between soccer and softball fields and fence around the ticket booth.

“There was nothing hard about it but it had some unforeseen things in the ground, like the existing sprinkler system,” Nichols said. “That came up when we were drilling holes for the backstop, and the dugout had beams in

Alpha Building Corporation gave the Prairie View A&M softball field a new look for the 2017 season.

the slabs. We had to go under the slabs for the irrigation system. Nobody at Prairie View knew what was in the ground or where it was located, because they didn’t have any drawings on it at the time.”

The project began construction on August 29, 2016 and finished on February 10, 2017. The timetable was critical with the first pitch at home on the horizon.

“The weather was a big issue because we had to do it during the winter time and it had to get done before softball season started,” Nichols said. “There was a lot of weekend work. It was a deadline that we had to meet, regardless of the weather and time it was going to take to build it. That was probably the most unique thing about it - the timeline.”

The press box was installed behind home plate and came preassembled. The announcers and reporters will work in the structure that sits on elevated columns. continued on Page 13

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Houston Construction News • July 2017

Bash at the beach

ore than 200 American Subcontractors Association (ASA) Houston Chapter members got together for free drinks and food for its 12th Annual Fiesta at the Beach at the American Institute of Architects’ (AIA) Sandcastle Competition on June 3 at East Beach in Galveston.–cs

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Royal flush

fter some bad luck with other companies, Ronald Goyne decided to go all-in on Ronald Goyne.

Goyne started Texas Master Plumber in Feb. 2005 and services the Houston area.

“I went through three air conditioning companies that were trying to start plumbing, and no one would let me do what I knew how to do to get things going,” Goyne said. “I had a friend of my mother’s that needed their gas turned on and a new water heater installed. I went over there, did the work and decided to just do it on my own on a whim. I took a leap of faith in myself and got started.”

Located in Pearland, TX Master Plumber does commercial and residential work, with a large majority being on the residential side.

“We’re always aiming for customer satisfaction,” Goyne said. “Originally, I wanted everyone to know when they called Texas Master Plumber that they’re getting a qualified, licensed plumber to their home.

“We know when the customer has a problem and needs service, we need to be there. There’s a lot of companies that schedule two or three days in advance, but when you have a plumbing problem, you need someone there now.”

Over 12 years into business, Goyne says the hardest part has been finding good workers and making sure they are taken care of.

“The largest hurdle was finding good, quality employees that I could trust,” Goyne said. “The biggest thing that

Texas Master Plumber owner Ronald Goyne does residential and commercial plumbing service and repair.

weighs on me is making sure my employees have enough work to keep them busy because I know they have families and loved ones they need to feed and house and car notes to pay, as well. I just don’t have my family on my shoulders, I have their families on my shoulders also.”

Goyne takes care of his people and their families because the industry has helped take care of his family throughout the years.

“My whole family has been in the plumbing industry since I can remember,” Goyne said. “I still have some cousins in the industry and all of my uncles were in plumbing. My grandmother even cooked for the office where I originally got my start. She cooked for the office and the mechanics’ department. She cooked for over 200 people on a daily basis.”–cs

Houston Construction News • July 2017

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Putting the fun in funds

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Ante up

2017-2018 TSPE Houston Board of Directors

he Texas Society of Professional Engineers (TSPE) Houston held its annual BBQ fundraiser on June 19 at the Michael Talbott Pavilion.

The funds raised with toward to TSPE Scholarship Fund. The events included a BBQ lunch, door prizes and raffles. TSPE raised around $3,000 for scholarships, and Harris County Precinct 4 Commissioner Jack Cagle addressed the group of about 110 people.–cs

Calvin Silva, McCarthy Building Companies, Inc., accepts his first-place trophy.

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he Construction Leadership Council (CLC) of Associated General Contractors of America (AGC) Greater Houston Area invited members to test their poker faces at its Texas Hold ’Em Poker fundraiser on May 11 to raise funds for the AGC Houston Scholarship Fund. –cs

Winners

1st place: Calvin Silva, McCarthy Building Companies, Inc.

Commissioner Jack Cagle addresses the TSPE Houston fundraiser crowd at its annual BBQ.

Houston

CONSTRUCTION NEWS Houston Editor HoustonEditor@ConstructionNews.net 832-595-0091 Construction News Ltd. Home Office P.O. Box 791290 • San Antonio, Tx 78279 210-308-5800 Fax 210-308-5960 www.constructionnews.net

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L-R: Calvin Silva, McCarthy Building Companies, Inc, and Mike DeLuca, McCarthy Building Companies, Inc., battle it out at the table.

2nd place: Mike DeLuca, McCarthy Building Companies, Inc. 3rd place: Juan De La Vega, DeWalt Power Tools 4th place: Hugo Yeverino, Architectural Doors & Hardware 5th place: Patty Glass, Marton Roofing Industries 6th place: Dave Peterson, East Texas Precast

Mike DeLuca, McCarthy Building Companies, Inc., takes home second place.

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Houston Construction News • July 2017

Simplifying Sales and Use Tax: A 4-part checklist Stephanie Thomas, CPA Principal Thomas, Thomas & Thomas PC Houston, TX

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or many of the construction firms we work with, sales tax is the bane of their existence. Texas has some of the most complicated, confusing rules that if not applied properly, can lead to steep penalties.

Determining the property type, project type, contract type and entity type will help you determine your sales tax responsibilities. Once those questions have been answered, understanding your sales tax responsibilities will be a lot simpler.

1. What type of property is it?

Commercial business – Commercial property is non-residential property. Examples include restaurants, manufacturing plants, office buildings, hospitals, malls, hotels, etc.

Residential - A residential property includes property used as a family dwelling, multi-family apartment or housing complex, nursing home, condominium, or retirement home.

2. What type of entity is it?

Taxable entity – entity is not exempt from Texas sales and use taxes.

Tax exempt entity- governmental, educational, charitable or religious entity that is exempt from Texas sales and use taxes.

3. What type of project is this?

New construction - all new improvements to realty, including initial finish out work to the interior and exterior of the improvement. It also includes the addition of new usable square footage to an existing building.

Repair/Remodeling/Restoration - to rebuild, repair, replace, alter, modify or upgrade existing realty.

A mix - is a project that has both elements. For example, adding a wing to an existing building has both new construction and repair/ remodeling elements.

4. What type of contract is it?

Lump sum contract – the charge for labor and incorporated materials is one charge.

Separated or line item contract- the charge for incorporated materials is separately stated from the charge for labor.

How to Use the Checklist to Charge Clients The answers to these questions determine how clients are invoiced and when sales or use tax is due on purchases. The following information is general and reflects current Texas sales tax rules for repair/remodeling projects performed on commercial property for taxable entities.

Repair/remodeling/restoration projects on commercial property for taxable entities are taxable, with few exceptions.

Sales tax should be invoiced as a separate line item on the total charge, except separately stated unrelated services charges.

The applicable tax rate is based on the jobsite.

In most instances, the contract type for commercial, repair/remodeling projects does not matter. However, there are exemptions for labor, if the repair/remodeling project is performed pursuant to a separated contract in a designated disaster area or the property listed in the National Register of Historic Places.

For example, Thomas Construction is the general contractor on a commercial, remodeling project with a XYZ Corp, a taxable entity. The property is listed in the National Register of Historic Places. If the construction services are performed pursuant to a separated contract, Thomas Construction only charges sales tax on the separately stated incorporated materials charge. If the service is performed pursuant to a lump sum contract, Thomas Construction should charge sales tax on the entire charge.

Sales Tax the Contractor Should Pay The contractor can purchase incorporated materials and subcontractor services tax-free by issuing a properly completed Texas resale certificate to subcontractors and material suppliers. Sales tax is due on consumable supplies and equipment rentals.

Conclusion

Determining the project type, property type, contract type and entity type will help you determine your sales tax responsibilities. Once those questions have been answered, understanding your sales tax responsibilities will be a lot simpler.

DISCLAIMER: The information provided above is general in nature and is not legal advice.

The provider of the information makes no representation regarding the law and/or its application to any entity’s specific situation. Because state tax laws, policies, and applications are dynamic, please consult with a state tax professional for a complete rendition of the law as it may apply to your specific situation at a particular time.

Since 1998, Stephanie Thomas, CPA has helped clients with sales and use tax issues.

Thomas, Thomas & Thomas, PC is a CPA firm that works exclusively in state tax issues only, helping clients all over the country address sales and use tax audits, minimize sales and use tax deficiencies, and understand how to comply with applicable sales and use tax laws. If you have more questions regarding sales and use tax, refer to Stephanie’s book, Texas Taxes For The Construction Industry, which can be found at www.thomaspc.com or contact Stephanie directly at (281) 4691103.

Taking back control in a difficult commercial auto insurance market Stan Gregory, Safety and Risk Consultant INSURICA San Antonio, TX

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ommercial auto insurance is becoming more difficult to manage each year. Rates continue to increase, and insurance carriers are limiting their appetites for anything but best-in-class risks. Before we look at what you can do to take back control of your auto insurance program, let’s take a look at the reasons behind this hard market.

1. Cell phones are huge distractions.

More than one quarter of all crashes involve distracted drivers talking on phones or texting. As younger drivers are hitting the streets, this problem is continuing to grow.

2. People are driving more. In the first half of 2016, we saw a 3.3% year-overyear increase in mileage driven, nationwide. This trend has been continuing for some time, and we are at an all-time high for mileage driven. Unfortunately, more driving translates to a higher frequency of accidents.

3. Medical costs are escalating. In fact, the rate of medical inflation is growing 1.5 times the rate of other costs. This is a big concern for insurance companies because experts agree there is no easy solution in sight.

4. Frequency and severity of auto accidents are both increasing. Claims costs can come from a rise in frequency or severity of accidents. With commercial auto, both are rising.

5. Auto repair costs are rising significantly. As the price of cars has gone up, so have the costs to repair them after an accident. With newer cars, even minor repairs can cost major bucks.

6. In 2016, auto insurance carriers in the state of Texas ran an average of a 110% combined loss ratio. Simply put, this means the commercial auto insurance industry is losing money. To make up for this, insurance carriers are tightening their driver qualifications, and rates are trending upward to compensate.

There are a few troubling things to note about these trends. Many of the trends simply do not have solutions. The insurance industry cannot do anything about more drivers on the roads, rising medical costs, or rising repair costs. Many industry experts believe the auto insurance industry will continue the pricing trends we are seeing for years to come.

For auto insurance buyers and commercial fleet managers, the time for proactive fleet management is now. While many carriers are limiting their appetites and increasing rates, the best pricing is

always reserved for customers with bestin-class fleet management programs.

Here are six things every business should be doing to manage their fleet.

1. Hire qualified drivers. Insurance companies typically exclude drivers after three violations. Best-in-class companies will examine a potential new hire’s driving record to determine if their moving violations could result in future problems with procuring auto insurance policies.

2. Check driving records regularly. In addition to pulling MVRs for new hires, best-in-class companies will pull employees’ MVRs regularly to check for new violations.

3. Implement a robust fleet safety program. This includes documenting the program and consistently communicating the company’s expectations to all employees.

4. Adopt and enforce a company policy for personal use of vehicles. While a lot of companies have personal use policies in place, many don’t enforce the policy in a consistent manner.

5. Train your drivers. Whether your insurance agent offers decision driving training or you contract with a vendor to provide training, it’s important to train new hires and re-train existing employees using proven risk management techniques.

6. Monitor drivers and vehicles using technology. There are a variety of options available for fleet managers to monitor fuel economy, speed, hard braking, and aggressive driving. These systems may require initial an investment, but the potential insurance savings can pay for them many times over.

Stan Gregory is a Safety and Risk Consultant and a leader on INSURICA’s Risk Management team. He has more than three decades of experience working with loss control, safety planning, and risk management for clients within the construction and energy industries. He can be reached at 210-805-5915 or sgregory@INSURICA. com.

Branching out

H&E Equipment Services held its grand opening on July 20 for its new location at 3825 Stone Oak Drive in Beaumont. Headquartered in Baton Rouge, LA, H&E has 79 locations throughout the country.–cs

Houston Construction News • July 2017

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Fantastic fishing The Economic Loss Rule and construction defect litigation Part 1: What is the Economic Loss Rule?

Varant Yegparian Schiffer Odom Hicks and Johnson PLLC Houston, TX A. Introduction Litigation is the last place anyone in the construction industry wants to be in. That is why owners, developers, contractors, and sub-contractors should draft their contracts with an eye toward the possible lawsuit. To that end, a contract’s terms (capping damages, excluding claims, specifying specific types of relief, etc.) represent a careful allocation of the parties’ risk—the “benefit of the bargain.” Parties to a construction contract rely on the negotiated terms to provide a measure of certainty—letting them know what to expect over the course of a construction project.

The ability to rely on a contract’s terms is especially important in litigation; being able to use a contract’s terms as defenses to a lawsuit can radically alter a person or company’s decision to sue.

Therefore, knowing whether a contract’s terms can be used in a lawsuit is essential.

A legal doctrine known as the “economic loss rule” is especially important in determining whether contractual defenses will be available in a lawsuit. Indeed, the rule provides a useful weapon to those who find themselves in litigation.

This article is part of a three-part series which will explain what the rule is, how it works in a lawsuit, why it is important to the construction industry, and how some recent court decisions affect the rule.

B. The Economic Loss Rule

The economic loss rule is a legal sorting machine: put in information about the parties, the type of damage, and whether there is a contract and it will spit out whether you have a contract or tort claim.

This sorting might not seem like much, but drawing a line between contract and tort claims can have significant consequences for a lawsuit. This is because tort damages cannot be recovered in contract – and – contract damages cannot be recovered in tort.

C. Tort or Contract: What is my claim?

In a construction defect lawsuit, the plaintiff usually asserts two types of claims: contract and tort. A breach of contract claim is straightforward: a party will claim that it had a contract with the defendant to, for example, to do all electrical subcontracting on the project. If the subcontractor fails to do its job properly, it will be liable or responsible to the plaintiff for breach of contract.

A tort claim—i.e., one for negligence—is a little more complicated. In the example above, assume again the

subcontractor did not properly install the wiring for the project. If a third-party inspector is inspecting the electrical work and gets shocked due to the faulty wiring, he could bring a personal injury suit against the subcontractor. This would be a tort claim. Importantly, the inspector could not bring a breach of contract lawsuit against the subcontractor because there is no contract between the two.

The inspector’s contract would be with the project owner, not the electrical subcontractor. Therefore, the inspector’s claims would be limited exclusively to tort—not contract—damages.

D. The Economic Loss Rule, Again: What does it do?

Returning to the example above, the inspector could not sue electrical subcontractor for breach of contract because no contract between the two existed (hence, tort damages cannot be recovered in contract). Likewise, the project owner could not sue the subcontractor for negligence because the damage suffered by the owner—improper wiring— is covered entirely by its contract with the subcontractor. This sorting of contract and tort is the key feature of the economic loss rule.

E. Conclusion The legal “sorting” provided by the economic loss rule—its way of separating contract claims from tort claims—is important in litigation. While some might think the difference between a contract and tort claim might is obvious, sometimes it is not. As will be explained in next month’s article, the economic loss rule can be particularly useful for those in the construction industry when there is an issue regarding what type of claim— whether contract or tort—a plaintiff has actually pled.

Varant Yegparian 700 Louisiana Ste. 2650 Houston, Tx 77002 • Tel: 713.255.4109 vyegparian@sohjlaw.com

Construction News JOB SIGHT

Fireproofed

Teal Construction is working on the new site for the Fort Bend County Willowfork Fire Station No. 3. The 13,400-sf fire station is located at 2700 Spring Green Blvd in Katy.

Burts Construction provided the site work, Botello Builders did the concrete and JTM Construction is the subcontractor for the site utilities.–cs

NJAC Construction

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ssociated Builders & Contractors (ABC) Houston members competed in fishing tournament on Jun. 9 at Top Water Grille in San Leon.

The tournament featured 64 ABC member boats challenging for different awards.–cs

Winners

2nd place: JACOBS 3rd place: Holes Incorporated 1st place Women’s Team: Teal Construction Big Red Winner: Rapid Recovery Big Flounder Winner: ISC Constructors Women’s Team Big Trout Winner: D.E. Harvey Builders Big Ugly Winner: TD Industries, Inc.

1st place: NJAC Construction

JACOBS

Holes Incorporated

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Houston Construction News • July 2017

Championship BBQ Committee, as well as being a director of the show. We stay involved with a couple of other charity events. We do one for the Navy Seal Foundation, and I show cutting horses.

That keeps me busy too. Besides that, I try to get in some hunting, fishing and work. That’s about it. It keeps us busy.

David Stone President American Fire Systems, Inc.

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tone has encountered many successes and struggles in his professional career, but 15 years into starting American Fire Systems, Inc., he is able to enjoy the fruits of his labor.

Stone also heads the Fire Sprinkler Contractors Association of Texas, along with being involved in other associations.

Where did you grow up?

I was born and bred in Houston. I spent my whole life between Spring Branch, Bear Creek, and Cypress. We live out in Hempstead now; trying to stay one step ahead of the city but it’s still chasing us.

Did you go to college?

No, I went to work and got married young. My wife and I have been married 32 years and have kids and grandkids. I got married when I was still in high school. I went to two trade schools, but no college.

Do you have any marriage advice?

Say “yes, ma’am” a lot, get used to saying “I’m sorry” and “it’s OK,” and even if you’re not wrong, admit that you were wrong. The first five years are always fun and the second five years is when people get a little complacent. Then there’s a point where you turn the corner and become best friends. Between kids and grandkids, we stay pretty busy. We’re best friends.

How many kids and grandkids do you have?

I have three daughters and nine grandkids.

How do you like being a grandparent?

It’s better than being a dad. If I would have known grandkids would be so much fun, I’d skipped straight over the kid part.

What has it been like seeing Houston grow?

I’ve watched the whole thing grow out in this general area for the last 30 years. Now when you look back, you remember where things were but you have a hard time remembering what it looked like, if that makes sense. There used to be, in Jersey Village, a big rice mill over there and I know about where it was but now it’s hard to remember where exactly.

Are you in awe about how big it has gotten?

Yeah, you look on the I-10 corridor and there used to be shopping centers over there that are totally gone because of the freeway expansion. You don’t think they have room to build something, but five years later, not only did they have room but they made it bigger than you ever expected.

What do you do away from work?

Hobby-wise, my wife and I are really involved with the Houston Livestock Show and Rodeo on the calf scramble committee and on the World

Does Texas have the best BBQ in the country?

Absolutely. Hands down. You go to other places in the country, and they have different styles. I cannot take anything away from them, as far as being good BBQ. I think Texas has the true definition of real BBQ. Where does giving back stem from?

I think it comes from growing up with not very much at all. My wife and I married very young so we know what it is like to not have enough food for the table that night. I think once you receive your blessings and the hard works pays off, then you start realizing you have to give back.

Can you think of a turning point where you realized that you were doing well enough to give back?

About 2005 my wife and I, right after we opened up our company, started going to a new church and started a building campaign. Being involved in the church, watching it grow and the pastor challenging us on our tithing, I would think that would be the biggest turning point of our life.

What led to you starting your business in 2002?

I worked for big corporate America and we were going into the best year we’ve ever had. Then they decided they were going to change the compensation structure. American Fire is owned by three partners. One of my partners was in my ear 24/7 about us leaving and doing it ourselves. That was probably the biggest catalyst.

Are Cody Huff and Craig Branstetter still involved?

Cody is our Operations Manager, and Craig is our Sales Manager.

When you started your business, Houston started to really grow. What was that like?

We had thought about leaving six months earlier, and that is when 9/11 happened. The whole country shut down and everyone was worried about money and stock market. We decided it wasn’t a good time to do anything. Five months later, it was now or never. Timing-wise, we were blessed with a lot of work in Houston. We did great until 2009 and in 2012, we tripled in size. We haven’t looked backed since.

How hard is it to manage a company that is growing like that?

It’s extremely hard. In 2007, we had some substantial growth over a two or three-month period. We were putting everyone we had to work. If you had a pulse, you went to work. We lost a ton of money over that time. We slowed down and went back to what we knew and tried to manage it. As we started growing in 2012-13, we were very intentional about hiring the right people and looking about what we needed tomorrow.

What was the biggest lesson you learned during that time?

Take your time and hire the right people. That’s the single biggest piece of advice I could give to any company out there. Take your time in the hiring process, do multiple interviews and hire the right people for the job. In the horse industry, you don’t buy a cutting horse to

L-R: Cody Huff, David Stone and Craig Branstetter got together and started American Fire Systems, Inc. over 15 years ago.

use as a roping horse. You don’t buy a roping horse to be used as a barrel horse.

You go buy a horse for what you need.

Don’t hire someone who has good skills and mold them into something different.

Hire the right person for the job.

How did you get involved in rodeo?

My wife and I were calf scramble donors for several years, and I asked my committee representative if he could get me on the committee. I ended up getting on calf scramble and BBQ the same year. I just kind of worked my way up from there. Neither my wife nor I grew up around cattle or livestock. Being around the rodeo introduced us to people that were, and as a result, ended up buying horses of our own. We got into cutting horses, trail rides and that kind of stuff.

Now that you can look back, what was the biggest mistake that you made?

I don’t really know. I made a lot, but every mistake is a chance to learn.

Obviously, I try to look at the positive side, even though it may suck at times. If you lose money on a job, you learn how not to lose money on the next one. I don’t think there’s one mistake that stands out from the rest.

How important is attention to detail in your job because a mistake has potentially fatal consequences?

Ours is not a comfort system or luxury. It’s a life safety system. We do different portions of the system. If any one piece of the system fails, it can be devastating, at that point. At the core, our base business is fire sprinklers, and it’s very critical that they be installed with the upmost attention to detail. They have to be perfect every time. There is no room for error. We actually have a couple of people that are dedicated to training and quality control. Our project managers are required to go out and survey the jobs on a regular basis to make sure they are getting installed right. From that prospective, there’s no room for shoddy work. I see plenty of it out there that we have to go back and fix. On the positive side of that, we get to learn from other people’s mistakes.

Are you mainly commercial?

Yes, we do mainly multi-family and commercial projects. There is not a big

call for single-family in the Texas market yet, just because of building codes and legislation. It’ll pick up in popularity.

Where do you see the business going in the future?

We opened up our Austin office about 18 months ago and just opened up our Dallas office 30 days ago. Our goal is to try to cater to the customers that build across the region, as opposed to just the local customers. We want to try and build for the developers. We are trying to build a company that can do more work for that customer base. Our goals are customer service, at the end of the day.

It’s what brings us business back. We want to try and do more work for the customers that we have.

As president of the Fire Sprinkler Contractors Association of Texas, you have members across the state. How do you get them all together for events?

We are competitors but we have three major events across the state and the first one of the year is the Skins and Fins at Clear Lake. We do a fall golf tournament in the Dallas/Fort Worth area, and all of the proceeds from that tournament go to the Texas Scottish Rite Hospital. Last year, we raised right at $100,000 for the hospital. We do the Christmas banquet in San Antonio. We try to get the three major areas involved.

The Christmas banquet is just a chance to get everyone together. The Skins and Fins is about the same thing, but we always weave in our vendor show, so that our suppliers can show us their new products in one area.

If you could have dinner with three people, who would you choose?

That is a super easy one for me. My biggest heroes of all time have been my grandfather, my great uncle and my dad.

What would the conversation be like?

We would just talk about everything that has happened since I haven’t been with them. All three of them were my best friends at certain parts of my life and at the same time. We would just catch up.

What would you serve?

A big, thick Texas steak with just salt and pepper .–cs

Houston Construction News • July 2017

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morning if possible. Most of the time I forget to do this, so I always have my trusty buff around my neck that I pull over my cap to shield my face and neck from the sun the rest of the day. These buffs are also handy to help keep your cap on your head when running across the bay. Y’all know how guides hate to go back for caps!! Stay Salty my friends!!

I still have several open dates for August, September and October of the 2017 season. Don’t wait until all the good dates are gone! To schedule your next bay fishing trip give Capt. Steve Schultz a call at 361-813-3716 or 361-334-3105 or email him at SteveSchultzOutdoors@ gmail.com. Good luck and Good Fishing.

Protecting Yourself from the Sun and Heat

by Capt. Steve Schultz Sponsored by: Waypoint Marine, Majek Boats, Evinrude Outboards, Fishing Tackle Unlimited, E-Z Bel Construction, Costa Sunglasses, Diawa Reels, Power Pole Shallow Water Anchor, Aggregate Haulers, ­­­ForEverlast Fishing Products, Interstate Batteries, MirrOlure, and AFTCO Clothing.

W

ith summer in full swing and temperatures on the rise, you must really be prepared when spending a full day on the water. Temperatures have already started reaching the mid to upper ‘90s during the hottest part of the day and with the heat index, that could feel like 102-105 degrees. It’s very important to stay cool and drink plenty of fluids so that you don’t get dehydrated. Proper hydration improves mood, boosts brain function and prevents fatigue.

When planning for your day on the water, pack your cooler with drinks that don’t have high amounts of sugar and carbs in them. These drinks will not quench your thirst and instead make you crave something else to drink. Beer is not a very thirst quenching beverage either. I know what you’re thinking, “Steve Schultz is getting old and soft”. I remember him when he was younger, he’d have a cooler full of Silver Bullets every time the boat left the dock. That’s true, and I’m not saying you should not drink beer while fishing, but it should be done in moderation and water should be added

S

Cameron Lopez of San Antonio had a nice mixed stringer of fish while pre-fishing with Steve Schultz Outdoors for a tournament. Note the sun gloves and sleeves that help protect this angles from the harsh conditions we work in.

in between every couple of adult beverages. That’s enough on the speech of beer on the boat.

One drink that’s good to have on your boat during the summer is several bottles of Pedialyte. Pedialyte is a medical-grade hydration solution specially formulated with the optimal balance of sugar and electrolytes needed to help replenish vital fluids, minerals, and nutrients, which, when lost, can lead to dehydration. Electrolytes are minerals essential to your health. They help carry electrical signals that power your nerves and muscles, maintain your blood’s proper pH, and balance fluids in your body. You get electrolytes from what you eat and drink, and you lose them any time you lose fluids, like when you sweat or go to the bathroom.

Another way I stay cool is by dressing in the proper clothing. Many of the fishing clothing companies make perfor-

Fishing business

ince his golf game ended with him spending a lot of time in the trees and sand, Gary Sharpe, vice president of estimating and sales at Allstate Commercial Flooring, decided that out on the water is a better place to meet with customers.

Sharpe is an avid fisherman and entertains customers by taking them on guiding fishing tours for redfish, speckled

trout and flounder in Galveston. Sharpe says it is great to show appreciation for the work they have contracted with them and builds new relationships with potential customers.

Sharpe remembers a time where a customer and himself caught so many fish that they were too tired to keep reeling them in and threw in the towel for the day.–cs

mance fishing clothing that helps keep you cool all day long. Columbia, Aftco, Under Armor and HUK are just some of the few that this captain wears on a daily basis. Light color garments work best on sunny day’s. This style of clothing has become very popular with most of the guides in our area because they also carry an SPF rating of at least 50 to protect you from the sun. You can also find shorts and fishing pants made of the same quality material.

Speaking of sun protection, let’s not forget to apply sunscreen at least 30 minutes before you hit the water. I typically use Neutrogena sunscreen products daily and try to remember to reapply mid-

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Houston Construction News • July 2017

thing left in the water gets coated with them, even crawfish. Worst of all they stop up intakes for water systems. From the cooling of a boat’s engine to supplying a thirsty city, if it pumps water from an infected waterway the mussels will clog it up! Expect your water bill to increase due to expensive efforts to clean and maintain water treatment facilities.

Zebra and quagga mussels have had an easy time traveling with people from one waterway to another. We move a lot of things by water. Between shipping and recreational activities we never thought much about moving from one body of water to another until now. Our only hope is to slow them down by learning to be vigilant about adequately cleaning and drying out our boats. Something as innocent as a wet rope or soggy carpet on a boat trailer can introduce the invasion into a new lake. So far no one has any way to eradicate or control the mussels without causing harm to others.

I hope you will take a little time to learn more about zebra mussels. You can go to my Facebook page; Great Outdoors Ken Milam Radio Show and listen to the podcast of the interview we had with Monica McGarrity, the Texas Parks and Wildlife Aquatic Invasive Species Team Leader about Zebra mussels in Texas Lakes, and “like” the page while you are there.

The more people that understand what we are up against the better. Maybe one of you will hit upon the idea that will make a difference. You are the most innovative people I know!

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

Zebras Attack!

I

know, it sounds like the name of a bmovie from the 1960s. Don’t worry, you won’t wake up one morning to find Zebras munching on the shrubs in front of your house or running rampant in the streets. I’m talking about another kind of Zebra. Zebra mussels.

I bet you have already heard the public service commercials from Parks and Wildlife about Zebra mussels. You know, “Clean, Drain, Dry your boat” in a catchy little jingle. If you don’t have a boat you may not even pay attention anymore. But do you use water for drinking or bathing or keeping your grass alive? Then you need to know about this!

Zebra mussels and quagga mussels are almost the same. They found their way to the Great Lakes in the ballast water of Eastern European ocean-going vessels in the 1980s and by 1990 have already infected all the Great Lakes. They are in 29 states already and sadly, Texas is now one of them. A single adult can produce

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100,000 adult offspring in her life and each of them will do the same. They are filter feeders that consume the plankton that is the very foundation of the native food chain from the water. This makes the water crystal clear as it has been stripped of nutrients and changes the amount of light that penetrates the water. More

light leads to unnatural and sometimes toxic overgrowth of algae that can kill native fish and aquatic birds. If that’s not bad enough, they attach themselves to everything in the water. No more barefoot beachcombing or letting the kids play in the sand at the lake’s edge, zebra mussels shells can cut you to pieces. Any-

Send to: Mary Hazlett, SA Editor SAeditor@ ConstructionNews.net (210) 308-5800

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

Ken Milam Guide Service (325) 379-2051 www.striperfever.com

Share YOUR photos and stories . . . fishing, hunting, skiing, biking, racing, or any outdoor activity and sport.

Don’t forget GREAT Vacations you’d like to send us!

www.constructionnews.net publishing the industry’s news

Texas Style

★ San Antonio ★ Austin ★ Dallas/Fort Worth ★ Houston

Houston Construction News • July 2017

Building up an appetite

M

ore than 500 people attended the Associated Builders and Contractors Greater Houston (ABC) Expo and Crawfish Boil on May 4.

Attendees enjoyed live music, all-you-can-eat crawfish and networking opportunities at the event.–cs

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T

Tees and tackle

he Fire Sprinkler Contractors Association of Texas (FSCATX) held its 7th Annual Skins & Fins Tournament June 8-10 at the South Shore Harbor Resort. The threeday event kicked off with classes and vendor shows on Friday, followed by a golf tournament on Saturday and a fishing tournament on Sunday to close the weekend.

More than 400 people from across Texas attended the event with 25 teams competing in the fishing tournament and 38 teams for the golf tournament.–cs

L-R: Dan Merritt, David Stone, Lance Prince and Alan Hertz

Jason Zinn, Wes Davis, Carlos Rojas and Mario Moya

FSCATX gave its members a chance to visit with vendors.

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Houston Construction News • July 2017

Brick by brick

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he Associated Masonry Contractors of Houston (AMCH) invited members and guest to enjoy music, dinner and cocktails at its 20th Annual Golden Trowel Awards on May 24 at The Junior League of Houston.–cs Residential-Multi-Family: Excellence: Chelsea Montrose – Camarata Masonry Systems, Ltd., GDA Architecture, SLR Montrose Construction, LLC. Government/Institutional: Excellence: Methodist Sugar Land Hospital Bed Tower – Camarata Masonry Systems, Ltd., WHR Architects, Vaughn Construction Education: College/University: Excellence: San Jacinto College Maritime Technology Center – D&H Masonry, IBI Group Architects, Tellepsen Builders Industrial/Commericial: Excellence: Pappasito’s Cantina – D&H Masonry, Pappas Architects, Satterfield & Pontikes Construction Block: Excellence: San Jacinto River Authority Surface Water Facilities –

Camarata Masonry Systems, Ltd., HDR Engineering, Inc., McCarthy Building Companies, Inc Education: K-12: Excellence: Condit Elementary, – Newcastle Masonry, Inc, VLK Architects, DivisionOne Construction; Honor: St. Pius X High School – T.E. Reilly, Inc., Turner Duran Architects, LP, Stewart Builders, inc.

Hardscape/Landscape: Excellence – Pine Island Entry at Woodforest – Hoggart, LP., LANDology, Woodforest Development Restoration: Excellence: 811 Louisiana/ Two Shell Plaza – Camarata Masonry Systems, Ltd., PSP Page Architects, Belfour Beatty Construction AMCH1: Camarata Masonry Systems, Ltd.

Camarata Masonry Systems, Ltd.

D&H Masonry

Golden Trowel Committee

Houston Construction News • July 2017

Page 11

THIS TH MON Jan: Construction Forecast Mar: Construction Education May: Concrete Industry July: Electrical Industry Feb: Construction Safety Apr: Women in Construction Jun: HVAC & Plumbing Aug: Service Providers

Texas thriving George Green, Vice President of Preconstruction VA Electric Houston, TX

T

he construction field is constantly changing with technology, code and different types of buildings being built. The electrical industry in the Houston area is no different as the technology changes and the customers look for the new and different in their projects.

How would you describe the state of the construction industry in general terms? Have you heard of an increase or slowdown in business?

Despite rumors of a slow down in construction due to political games, we have been experiencing quite the opposite, and with design firms still backed up, we don’t see it stopping abruptly or anytime soon.

Do you see an increase in the number

of outside contractors coming to the area?

No. We are based in Texas and cover most of the state. The cat got out of the bag several years back about Texas having one of the strongest economies, and we have been fighting off non-local competition ever since. The vast majority of these outside contractors that sought to expand into Texas and have since retracted after taking their lumps.

Living by the code of safety Ben Tijerina, Assistant Project Manager HJD Capital Electric

Electrical Industry Sep: Green Building Nov: Architecture & Engineering Oct: Specialty Contractors Dec: Construction Equipment

What are the “hot button” issues in your industry?

Skilled labor. The number of quality, skilled electricians, or young men/ women looking to pursue the trade is outweighed by the amount of positions becoming available.

What is on the horizon for your industry?

Electrical materials and installation techniques are constantly evolving.

These evolutions are largely focused around safety, reduction of energy consumption and production increases.

A few specific items we keep an eye on include lighting fixtures, intelligent lighting controls and equipment/ installation testing requirements.

With the recent emphasis on green building, what is the most environmentally friendly change relating to your industry?

This answer varies depending on building type. An easy answer would be lighting and lighting controls. Those two components usually equal, and often times exceed, the cost of all other electrical materials on new construction projects. Much of this is due to advancements in lighting fixtures and the ever-expanding use of lighting controls to include daylight harvesting.

Another answer that often gets overlooked is mechanical system demands. As building and insulation

materials improve, so do the efficiencies of mechanical systems, which usually account for 25-plus percent of the tenant’s electric bill. Not only does this change get noticed monthly when your electric bill arrives, but your reductions in mechanical loads can also lead to reductions of service sizes saving you money up front on construction, or giving you extra capacity should you ever add equipment or realty.

Has the theft of copper affected pricing of work?

No, you will always have a few bad eggs but if you need to charge the customer for something they will never see nor use a better purchasing and handling protocol should be put in place.

What are keys to being successful?

We are still looking for those keys, but persistence and making sure the people that we take care of at VA has gotten us pretty far in a short amount of time.

Tell me about your company.

VA Electric was formed at the tail end of 2013 with simple “old school” core values, a handful of good people, a couple of great customers and a desire to produce quality electrical services. Four years later, a few more great customers, and around three hundred employees later we still stick to the same simple core values today, just on a much larger scale. –cs

the city, and a lot of the work is on a budget. When things like this happen, it comes back with a large cost, and they try to do something different instead.

In addition to costs for the owners, what are the factors that affect retrofit-ting for electricians?

One of the biggest things with the NEC and with us in general in the industry is safety. That’s always a big deal, especially when we’re dealing with electricity. That’s key for us. It’s very important that no matter what we do, especially in researching all these things.

When you get into some of this older gear, and you have to start researching what it is we need to do to accomplish the goals that have been given to us by the contractor, safety is always the most important thing.

You never know what you’re going to get into when you pop open a cover of a piece of switchgear that’s 30 years old.

When we get into these older systems, we’re very cautious. And I don’t want to say more cautious than we are with the new installation, but the luxury for us with the new installation is we can make sure everything’s correct before we turn it on. When we go to an existing system, we’re always challenged with what could

be behind those covers that we’re not seeing.

San Antonio, TX

I

n September, the 2017 code will become effective.

What changes can electrical contractors expect to see in the new code?

The code changes every three years.

It’s always minor changes. The NEC [National Electrical Code] has always been about safety. My view is that the NEC is there to protect people and equipment. There are always going to be changes, and most of them have to do with safety and safeguarding people and equipment. The arc-fault requirements always get expanded every time they do these revisions.

The arc-fault, circuit interrupters, became required in 2011. This is because of personal safety. It’s geared more toward residential than commercial, but when they changed the code, they made it required to have every electrical circuit that is going to what they call “a living area” be protected by an arc-fault breaker to help prevent house fires. If an extension cord is broken and starts a fire, the arc-fault breakers will catch that and interrupt the circuit. That way there’s no damage down the line.

Do you use the code often in the field?

As an installer in the field, [the code] goes more into the design of these buildings and how they build them. It is something that as an electrician, you do need to know, but it’s not something where we’ll have a codebook right by us and pull it out. As far as requirements or arc-fault and other safety [factors], those usually get integrated into the design.

We’ll be told, “You’re going to use this kind of breaker here now. A couple of years ago, we used this kind, and now, you’re going to use this updated kind.”

Is it more relevant for new installation as opposed to service and repair?

When you get into service and repair – normally, when you touch a system, you do have to bring it up to code. For instance, if we did a residential call, which we don’t really do at Capital, but if we did, and the customer is asking for an interior panel to be changed out, then as

an electrical contractor, you would have to go in and update everything to meet the new code requirements.

When we go in and renovate places, if the systems aren’t meeting the code requirements, we have to update them. We go into buildings they want to renovate and [the electrical system] doesn’t meet the new code – or doesn’t even meet the code for the past 10 years – so you get in there and you have to update it.

When you update a system that is so old that it doesn’t meet the code, do you have to update or replace the whole system?

Depending on how old the equipment is, sometimes it’s easier just to pull it all out and start new. I’ve run into that several times. But then, you get certain situations where you can retrofit what is already there and make it meet the new code requirements. It just really depends on how old the system is.

Whenever we run into systems that are, let’s say, over 30 years old, that’s usually when we just completely replace.

On some of these older systems, we’re working with a piece of switchgear that’s 30 years old, and they want you to pull a new subpanel out of it, you get to the point where we need a breaker for this switchgear, and the breaker for the switchgear just isn’t available new. It’s usually only available when it’s refurbished, and it’s so expensive that it’s actually cheaper to just replace the whole system. When it gets that bad, it just depends on what kind of system it is.

Do you run into that often in commercial construction and renovation?

What fraction of your work poses this kind of challenge?

I would say it’s about one-third. We don’t run into a lot. Also, a lot of the work Capital does is with the government and

What’s an example of such a safety concern?

Some of the locking mechanisms on some of the panel covers of older gear – the way they were designed, they could pinch wires. I’ve seen that before. I’ve seen bolts come loose on panel covers and fall inside a piece of switchgear that’s energized. That’s never a good feeling – to hear something fall in there. Everybody usually turns their head when they hear something fall because they know there’s a possibility it’s a bad situation.

For instance, if a bolt falls – and it would have to be a perfect situation – but it could fall in between two of the bus bars or in between the bus bar and the metal frame, and then, that would cause that phase to ground out and you would have an arc-flash, which depending on the size of the system could be life threatening. It’s something that we’re always looking out for.

Having been recently promoted to his current position, assistant project manager, Ben Tijerina has been with HJD Capital Electric for three years and has been an electrician since 2006. –mh

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Houston Construction News • July 2017

NEXT TH MON

Service Providers

If you would like to represent your company in an upcoming FOCUS, contact your Houston Editor for an Interview 210-308-5800 HoustonEditor@ConstructionNews.net

Electrical horizon Vincent Real,President and CEO Big State Electric Ltd. Austin, TX

H

ow would you describe the state of the construction industry in general terms?

I feel Texas has been vibrant and creative to keep our economy healthy. Texas leadership has always been proactive attracting large industry and Fortune 500 companies.

No matter where I go or turn there is construction projects of all sizes including infrastructure and highway improvements throughout the state. I would say the economy in Texas is fair.

Have you heard of any increase or slowdowns in business?

Obviously the oil production decrease and under $50 a barrel oil has had an impact on Texas. Our Houston office has definitely been feeling it for the last 10 months, but we see light at the end of the tunnel.

We have been budgeting many projects for large companies and we feel it is only a matter of time until they are released.

We have also noticed a lot of consolidation in facilities with the larger companies. The Permian Basin is very active at the moment and we hope it trickles down to the Eagle Ford and other parts of South Texas. On the bright side, we are seeing a lot of activity in San Antonio, Austin and Houston with public education bonds being passed to build more schools. There seems to be a lot of activity in the higher education arena also. Medical and data centers, also seems to have some activity.

What are the factors driving this increase/slowdown?

I believe not only national, but also international companies focus on Texas. It is a company and industry friendly state that does not handcuff large industry with laws and regulations. Not that our state leaders

don’t protect our state and the people that live here, they just seem to be more sensible and use common sense when it comes to what is decided for the large companies and what is good for our state and its cities.

Do you see an increase in the number of outside contractors coming to the area?

We do see a considerable number of general contractors, mechanical, electrical and plumbing contractors from other states setting up offices in the areas where we work. Especially in the last 10 years large contractors, from the East and West Coast, pursing large government and municipality projects in the state.

What are the costs increases relating to your industry?

We historically have had labor increases due to inflation and insurance coverage continuing to rise. We have invested a large amount of funding on two full time safety personnel and looking for a third so we have one in each office. We are also increasing safety and certification training. We have seen a positive side to this by lowering our modifier and reducing our insurance premium.

Workload, costs, labor shortages up Bill Groves, President Charles VandeZande, Vice President of Estimating Groves Electrical Service Inc. Farmers Branch, TX

H

ow would you describe the state of the construction industry in general terms? Have you heard of an increase or slowdown in business?

In the DFW Metroplex, the workload exceeds the available manpower. In the last few years there have been several large projects in the Metroplex that have taken a lot of the available workforce to complete. With large projects like The Star, Frisco Station, Toyota North American Headquarters, State Farm Insurance and Legacy West, everyone that is willing to work has a job. With all of this work, prices have gone up and budgets are getting exceeded. You have to be able to not only help with budgets and bid the projects, but find ways for owners to save money and get projects in budget. This includes working with the general contractor to redesign projects in a way that the owner still gets what he wants at the budget he can afford. At Groves Electrical Service Inc., we have an experienced and valuable estimating and design team to help with this. If you don’t have the ability to do this, the jobs go over budget and will not be funded or at least put on hold until they can get them redesigned and rebid at a later date.

What are the hot button issues in the industry?

One of the hot button issues in our industry is safety. When you start a job, contractors want to meet the person responsible for the safety in your company.

They want to see a specific person that will be held accountable if something goes wrong at the jobsite. It is every contractor’s responsibility to make sure that every employee goes home at the end of the day. The electrical trade has certain inherent dangers associated with the trade and contractors want to know how you are going to mitigate those dangers so that employees can work safely. The “Good Old Boy” way of doing things without the proper training and safety equipment is disappearing fast.

Do you see an increase in the number of outside contractors coming to the area?

We have found more general contractors opening up shop in the Metroplex every day. We receive email bid requests from contractors we have never heard of every week. We try to vet each general contractor before deciding if we will give them a bid on bid day.

What is on the horizon for your industry?

We have invested in various software, more computers, ipads, cell phones and state-of-the-art tools. We are doing more training, preplanning, prefab and taking more emphasis on material and logistics.

In simple terms, reducing task and steps on the project site.

Back in the ‘90s, we did a project at a research facility where high voltage cable grids were installed overhead in the interior of a large building. This was to mock up high voltage utility lines that we see in our cities and rural areas. Monkeys lived in this facility for years and were observed to see if the frequent exposure had any side effects or caused medical issues.

Have there been any significant code changes in the last year?

Yes, related to the energy codes regarding lighting, lighting controls, daylight harvesting and automation of window shades in large buildings.

What is the most significant challenge your industry faces?

I would say hiring. We have become a society that feels they are entitled to high wages and benefits when they have no experience. I had a friend tell me his son just started his first day as an intern at a large company and one of the other interns in the group asked, “I wonder how many hours they expect us to work?” That scares me when this type of mindset exists for potential new hires. I am seeing it too often.

With the recent emphasis on green building, what is the most environmentally-friendly change relating to your industry?

I think in the electrical industry it would be the disposal of incandescent, florescent lamps and ballast. You can’t dispose a large quantity when doing a demo project. I know Big State Electric is doing a better job recycling and collecting cardboard, pallets, etc. for recycling instead of throwing in the dumpster. We have been on some large projects when owners are seeking LEED Certification for silver, gold or platinum recognition for their buildings.

On these projects you have multiple dumpster separating cardboard, pallets, scrap metal, sheetrock, trash, etc. to score points.

Have you seen an increase in safety awareness?

Yes, I would estimate a 30 percent increase in the last five years in our company.

As a minimum, all our employees are OSHA 30 or OSHA 10 trained along with many other special certifications.

What is the most unusual application of electricity you have seen?

With the recent emphasis on green building, what is the most environmentally friendly change relating to your industry?

The lighting industry and LED lamps are the way of the future and the future is now.

What is the most significant challenge your industry faces?

Labor shortages for the electrical industry are a big issue facing electrical contractors in North Texas. When a seasoned veteran retires, they are harder than ever to replace. At Groves Electrical Service Inc., we are training in the field and in the classroom. We have always trained and promoted from within, and now it is more important than ever. We are finding it harder and harder to find young talent these days. The electrical trade needs to be held in the same regard as a four-year college degree. Spend four years in the trade and become a journeyman while getting paid. Contrast that versus spending four years in college and receiving a degree along with student loan debt.

What are the cost increases relating to your industry?

Labor and material are up. General contractors are utilizing “Doc U Sign” for subcontractors and are becoming more and more unwilling to negotiate favorable terms and conditions with subcontractors, shifting costs from the general contractor and forcing them upon the subcontractors.

Texture payments are also an additional cost added to the subcontractor.

Has the theft of copper affected pricing of work?

Copper theft is still a big problem. In the past year, we have had a new school in

What are the rewards of the industry?

The friends I have made and every project we complete and getting that warm and fuzzy feeling of accomplishment. I am very proud of our company name and I smile every time I see one of our trucks on the road or seeing our sign hanging on a new construction project.

What are keys to being successful?

I think finding people to work in your organization that are self- motivated, driven with a desire to be a servant and that are engaged daily. We all work hard in our organization but we try to have a little fun while we are doing it.

Big State Electric Ltd. headquartered in San Antonio, with offices in Austin and Houston Texas, has been in business for over 50 years performing all facets of electrical services from 38 KV to low Voltage telephone/data cabling. –cmw

Dallas hit twice. Once they stole from the plumber and once from us. Our sports lighting projects are always susceptible to theft due to the secluded nature of the projects.

Are there solutions to the copper theft problem?

There is no foolproof way to stop copper theft. We cannot install the copper until the job is secured. We utilize aluminum conductors when allowed.

What are the rewards of the industry?

The rewards are many, such as the relationships that are created as time goes on with owners, general contractors, engineers and other trades. As with all construction trades, the feeling of accomplishment you get with each project, large or small. Whether you are a young apprentice installing your first ceiling fan or an experienced apprentice finishing a single room, you get a feeling of accomplishment. For the foreman and project manager, it might be the first football game on a new field or the opening of a school, restaurant or fire station. The electrician is the first on site with temporary power and the last one finished after we put the plug and switch plates on the devices. You get to meet or at least see all the trades work and learn something on every project.

What are the keys to being successful?

Hard work and good preparation is the only way I know to succeed. You have to keep current in your field and not let technology or code changes happen without your knowledge.

Electrical contractor Groves Electrical Service Inc. specializes in a wide range of projects, including educational, municipal, hospitality, municipal and retail. –mjm

Houston Construction News • July 2017

Page 13

Round-Up

continued from Page 1 — Ball of energy

continued from Page 1 — Flooring for a cause Agency, and Houston Welcomes Refugees are a few of the community projects we support. We also helped build a church in Vietnam some time ago. We look forward to continuing these efforts on a larger scale as ability and opportunities increase.”

Allstate is a turnkey operation, buying and installing the materials, to give the customer a complete experience with the company.

“Our primary niche is working with general contractors, architects and design-build firms directly to get the work and install it,” Sharpe said.

Branching out and starting their own company came with issues, including funds that are wrapped up in big projects.

“The hardest part was getting the cash flow up to speed before we ran out of cash,” Sharpe said. “That was our challenge. If you bid on a school, it takes nine months to a year before you’re actually out there doing the work. Then it takes 45-60 days until you’re paid for your initial draw. It takes a while to get a book of business built up to sustain the overhead.”

Even with the difficulties of a new

business, Allstate secured its first milliondollar project in its first year, aided by Vu and Sharpe’s name recognition around the city.

With a decade in business approaching, Sharpe believes the team has the chance to keep expanding off its service.

“We’re up to about a $7 million company, annually,” Sharpe said. “We just want to continue that growth and in the next five years perhaps be a $12 million company.

“I think it is about making our service stand out from start to finish, and building a team and community in the office where everybody handles their scope in a way that allows them to take full responsibility for their scope.”

Allstate has 25 employees that all focus on speed and quality, which trickles down from the top.

“We’re able to get a lot of work done in a short amount of time,” Sharpe said.

“Tommy Vu is well known for getting a lot of work done in a short amount of time and getting it done in a high-quality fashion. I would give Tommy Vu credit for that part of our work, for sure.” –cs

continued from Page 1 — Facility facelift

Mark Henderson joined Dewberry as principal and is in charge of business development in the Houston area. Henderson, Texas Tech grad, has 32 years of experience in managing and designing national healthcare projects.

Dewberry announced the following: Dewberry announced Kenneth Byrd joined the company as a senior project man-ager.

Byrd, whose specialty is healthcare, has more than 30 years of experience in the design and construction of and international commercial and industrial facilities.

Slack & Co. Contracting, Inc. announced the following: Andrew Landry is the newest project manager at Slack & Co. Contracting, Inc. Landry previously worked for J.B. Construction, LLC. as a project manager before joining Slack.

Slack & Co. Contracting, Inc. announced that Kurt Roedel joined the company as an estimator.

Roedel has 12 years of experience in the construction industry, including time as an estimator, project manager, business development along with other positions.

Shepley Bulfinch announced on June 14 that Robert Simmons has joined the architectural firm as a Principal. Simmons was a Principal and partner at Bruner/Cott & Associates before running his own firm in 2016.

Baker Triangle is pleased to announce the promotion of Preston Pressley to Vice President, Business Development and Marketing. Pressley has been with Baker Triangle for six years and is a graduate of Texas A & M University.

Submissions

company is very important.”

Santiago, who is originally from Argentina, has eight employees, and Red Nova does 70 percent apartments and 20 percent commercial with industrial and gas splitting the rest.

Being in Houston, there is always work available but competition is also very high.

“It’s stressful but it’s nice knowing the work is out there. Honestly, we get nearly 30-40 bids a week for projects. I don’t have the time to fulfill all of them. The goal is to have someone that can help with the estimating. I don’t want to get all of them but I want the feasible projects.”

The name, Red Nova Energy, is unique and stands out, just like they wanted.

“I was trying to think of something that gets your attention and also sounds good and professional. Red is a color that gets your attention and a supernova is bright star that gets your attention.”–cs

Round-Up

Red Nova is finding footings and path.

“We started the company wanting to go a certain direction, but things turn around and you end up going the opposite direction,” Santiago said. “You can embrace it or fight against it. Fighting against it isn’t worth it. Our idea for five years is to be a $510 million company. We are getting ready to move offices to a different place. I just want to grow the company. I don’t care about the money. The money will come with the growth.”

To grow, Santiago says the company needs to look inward and take care of the customer.

“It comes down to customer service,” he said. “I want my guys to look and be professional. I’ve seen a lot of times where the customer has a problem and people try to do their own thing and sell the customer on something. We don’t do that. You have a problem, and we have the solution. We keep it honest. The reputation of the

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Association Calendar

Content submitted by Associations to Construction News ABC

IEC

Associated Builders & Contractors

Independent Electrical Contractors

July 17: Membership Breakfast Featuring ABC National President Mike Ballaman July 22: Crew Leadership Class Begins July 29: Warrior for Life Luncheon

ECAT Earthmoving Contractors Assn. of Texas

July 21-23: Annual Meeting, Holiday Inn NW Sea World, San Antonio

July 19-23: 2017 Conference and Products Show, J W Marriott San Antonio Hill Country Resort & Spa

NARI Nat’l Assn. of the Remodeling Industry

Fire Sprinkler Contractors Assn. of Texas

July 18: Houston Luncheon, 11:30 a.m.1 p.m., Cavatore’s Italian Restaurant

HAGA Houston Area Glass Association

July 13: Summer Bowling Mixer, 6-10 p.m., Willow Lanes CMU block and stands three-ft. tall with pad placed on the inside.

The Prairie View A&M athletic department had its own architect to draw up the plans. The plans did not involve any work on the field or in the grass, due to the issues that it would cause with the NCAA regulations related to field dimensions.

“If you did any work on the field, you would have to update the entire facility to the new NCAA standards,” Nichols said. “If we did any work on the field, itself, we would have had to take down the outside fence and move it back.”

Alpha poured a new concrete slab with steel columns and added CMU block and bricks for the dugouts. –cs

MCA Mechanical Contractors Association

FSCATX July 20: Houston Meeting, 11 a.m., Dave & Busters

“I’ve built some gas stations a few decades ago that were manufactured up north and they loaded them on a trailer and brought them to the site,” Nichols said. “The press box was just the same.

You order it from the manufacturer and it comes out here preassembled and all you have to do is run your power to it and build the structure it sits on. The bleacher manufacturer provided the galvanized structure steel for the bleachers and the press box.”

The concrete work was done by Precision Development, and Nets of Texas provided the nets behind the plate, which are the same as professional baseball stadiums.

The backstop was replaced with

July 15: Graduation July 17-19: Troubleshooting

Page 14

Houston Construction News • July 2017

Bridging the gap

T

Associations across Houston and the state of Texas are struggling to connect with and keep the new generation of construction professionals.

he way people get information, communicate and market for their business has changed drastically over the years, and Houston construction associations are finding ways to adjust.

Brianna Wright is the Executive Director of the American Subcontractors Association (ASA) Houston Chapter.

Wright and the ASA are focused on reaching out to the 35-and-under demographic.

“We are concentrating on getting those individuals involved,” she said. “We want to let people know that these are the future leaders of the companies.

“We’re working on getting them together for networking at an event so they can get to know each other. We actually opened it up to anyone in the construction industry. We opened this up to general contractors, architects and anyone in the construction industry. We are trying to create a place where these people can get together and build relationships.”

Jennifer King is the president of Young Professionals Committee with the Associated Builders and Contractors (ABC) Houston. Young Professionals began in late 2015 to reach out to this missing younger group. After having five to seven attendees early on at the ABC office, King moved the group to bars and restaurants inside the loop to allow people on job sites to attend. In 2016, the leadership of the Young Professionals added seminars and charity events to the networking opportunities.

“We started doing big events that were like ABC events,” King said. “We did a corn hole tournament where we raised money for ABC scholarships and our committee itself. That event alone was the same amount of people that you would have at a normal ABC event – around 100 people. Typically we are at around 20 people at our events.”

To get the younger generation involved, Tyler Althouse started the

Building Leaders Development Group (BLDG), a networking opportunity group.

Althouse leads and is an advocate for BLDG after seeing the benefits from being part of ASA from early in his career.

“The comradery and the networking have been big,” Althouse said. “I’ve gotten some mentoring opportunities because I started in the ASA and began going to meetings about eight years ago.

At that point, I was about 26 and some of the people just took me under their wing and helped me out. I got on the Houston board four or five years ago, and when I got there the people really started helping me out with general business and personal life.”

Althouse, vice president and general manager of Texas Moisture Protection, believes it is on upper management to get the new crop of future managers and leaders involved.

“Most of the senior management is older and I don’t think they direct their younger managers to get involved,” Althouse said. “I don’t think they push them to get involved. I think they see it as a benefit or entitlement that they go to these functions. I don’t think it’s lack of interest from the younger people. I think their management isn’t telling them to get involved.”

Instead of changing the way people

think or how they work, Wright says it is on the association to adjust.

“This is not just a construction or association thing; it’s a world-wide thing,” Wright said. “We don’t need to change it.

We have to figure out how to embrace it.

“I don’t think we change what we do.

I think we change how we do it. When you do something over and over, it’s hard to come up with a new idea. The last networking event we had was at 2:30 p.m. and the other four we did, we did were at 5 p.m. We got an OK response, and the last one we did was on St. Patrick’s Day and we had a huge turnout. What we heard most was that they could leave work and get home at my normal time.

That is hugely important. It was big eyeopener to us.”

King, who is also the marketing director for Teal Construction Company, sees the Young Professionals as a chance for members to advance their careers.

“Different people give their reasons why they’re involved,” King said. “Even though we’re all competitors, we are all going through the same things. It doesn’t matter if you’re with Harvey or Teal, dayto-day you’re going through the same things. It’s nice to have comradery with other young professionals where you can talk about successes or issues you are having.”–cs

ABC’s Young Professionals Committee is concentrated on reaching out to young people in the industry in hopes of getting them involved early.

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Houston Construction News • July 2017

Page 15

Clash of the castles

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he sands of time did not stop association members from competing in a childhood favorite activity.

The American Institute of Architects (AIA) Houston chapter hosted members across Texas for the 31st Annual AIA SandCastle Competition on June 3 at Galveston East Beach.

Fifty-eight teams competed to win different awards and spend a day at the beach with fellow members, putting together masterpieces of sand. Kirksey + Metzger pulled off a three-peat, winning its third consecutive first place Golden Bucket.–cs

Winners

Golden Bucket: Kirksey + Metzger – Surf and Turf

Silver Shovel: Gensler + Harvey – Return of the Crawfish Bronze Shovel: Ziegler Cooper Architects – Quest for the Holy Pail Fourth Place: Pfluger Flintco – Clash of the Icons Fifth Place: Page –’Tis the Sea-sun Sixth Place: HKS with DPR Construction – Crash Sanding Annual AIA College Challenger: Richard Meier – Barcelona I “LIGHT” Best Team Signage: Browne McGregor Architects – Houston, We Have A Sculpture Best Team T-Shirt: Page – ’Tis the Sea-Sun Best Costume: Philowilke Partnership – 5th Element The Sydney LeNoir Public Favorite: ASCE Houston – Bowser’s Beach Bash!

Tallest Standing Structure: Kirksey + Metzger – Smurf and Turf Best Sports: VLK Architects – Pirates of the Super Bowl Best Science Fiction: HKS with DPR Construction – Crash Sanding Houston-Centric: Gensler + Harvey – Return of the Crawfish!

Kidtastic! Lego Edition: Perkins + Will/HOAR Construction –The Truth About Legos Best Traditional Castle: Kirksey + Metzger – Smurf and Turf Best Architectural Icon: Freese and Nichols, Inc. – Mayan Pyramids

Kirksey + Metzger

Freese and Nichols, Inc.

Gensler + Harvey

Kirksey + Metzger

Making history

McCarthy Building Companies, Inc. broke ground on Phase II of a 243,632-sf expansion for the Museum of Fine Arts, Houston. The project, which is expected to be completed by 2019, features three floors of galleries, an underground parking garage and a three-story central atrium along with other amenities.–cs

Ziegler Cooper Architects

Page 16

Houston Construction News • July 2017