Austin Construction News August 2017

Covering the Industry’s News

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Number 8

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AUGUST 2017

Basking in the sun

Still digging ditches

L-R: Twin brothers, Eric and Derrick Hoffman own and operate HE Solar LLC

Alma and Josh Phelps

y the age of 14, twin brothers, Eric and Derrick Hoffman were working summers doing electrical work with their father, gaining apprenticeship hours. When they were 18, they had both acquired enough hours to take their journeyman’s exam and by age 19, they had their journeymen licenses. With only four years to go to acquire the coveted Master Electrician license, the boys continued on their path, following in their dad’s footsteps.

“We grew up in the industry. My dad is a master electrician and he put us to work during the summers and in high school and that’s where we started accumulating hours as an apprentice. We were able to become journeymen at a pretty young age and just continued

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with it. We started building a craft and we both really enjoy it.

“We both got our bachelor degrees in construction science. We studied sustainability and it was a match with our electrical background,” said Eric Hoffman, co-owner of HE Solar LLC. While attending Texas State University, the two young men continued on their way while earning their Bachelor of Science degrees in Industrial Technology with a specialization in construction. As soon as they had their four unrestricted journeymen years behind them, they took their test and became master electricians.

“Derrick and I were 24 when we got our master electrician status. We had continued on Page 17

J

osh Phelps, owner of JL Phelps & Associates Plumbing and Mechanical LLC started working at young age for a plumbing contractor when he was 16years-old. Making $4 per hour, Phelps knew he was on his way to success.

“The first two to three years I was working, I would saw concrete, break concrete up, and dig a ditch. Then another plumber would come in and lay pipe in, and then I’d come back and fill it in, cover it back up and pour the concrete back. That’s what I thought plumbing was.

“Luckily the man I was working for, registered me as a plumbing apprentice at that early age. Thank God he did. By the time I was a year or two out of high school, I was eligible to take my journeyman test.

“At 19 or 20-years-old, I was a journeyman card carrier. They gave me a truck and a helper and off I went to plumbing. After about five years I was able to get my master license,” reflects Phelps.

Just nine short years after first starting to work as a helper, Phelps found himself as a foreman on jobsites, owning his own house with five acres of land, two roping horses and a couple of trucks.

“If it had not been for Mr. Servor who registered me as an apprentice, who knows? Now days, it’s a lot more political.

I think you have to be a minimum of 18 years old to be an apprentice. Back then, you didn’t have to be. None of that was written into state law like it is now.” continued on Page 17

Alternative education

ounded in 1988 by Wayne and David Lott, Lott Brothers Construction Company LTD (LBCC) has constructed or renovated over 5 million square feet of space. The two brothers entered the construction business quite naturally by following family tradition. Their father, Wayne Lott Sr., worked as a commercial contractor in Austin beginning in the 1950s, and his work ethic, dedication to guiding principles, and core value of “doing things right the first time” were instilled in Wayne and David from a young age. Their father’s efforts inspired the brothers to pursue careers in construction after each obtained his bachelor’s and master’s degrees in engineering from the University of Texas at Austin. LBCC serves their clients with the simple commitment of working tirelessly to make every project absolutely right.

Although highly experienced in healthcare construction, LBCC has a diverse project history including retail, corporate

and commercial offices, educational facilities, institutional, municipal, religious, multi-family and mid-rise condominiums, warehouse distribution and service centers. Their 20-year long history of work with HKS Inc., complimented the relationship between HKS and IDEA Public Schools.

IDEA Rundberg’s phase 2-classroom addition is a two-story structural steel framed primary classroom building with associated site improvements. This phase provided the campus with an additional 32,000sf of classrooms and associated spaces.

With the building site’s expansive clay with fluctuating rock and water tables, the building was built on a pier and beam slab.

The exterior of the building was comprised of metal studs with Hardi Plank siding and metal panels. The project’s interior was constructed of light gauge metal framing and drywall with VCT tile flooring.

Avadek canopy systems were conIDEA Rundberg Phase 2 Classroom Addition

continued on Page 17

Page 2

Austin Construction News • August 2017

70 years strong

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Standing underneath the original sign from the company started be Charles Wilson in 1947, L-R: Terry Wilson, John Brewer, and Chris Siebenthaler

ounded in 1947, and still operating 70 years later, Wilson Plumbing Company Inc. continues a family long legacy. Originally established in College Station, the company moved to Austin in 1984.

Terry Wilson, owner and his older brother went to work for their grandfather, Charles Wilson who founded Wilson Plumbing. “I would work during the summers, but it was the mechanical aspect of the business that I loved,” reflects Wilson. “I started working fulltime with my grandfather in 1974.”

Wilson Plumbing got started when Wilson’s grandfather started selling furniture. “After the war everybody came back and started building. In those days you did not have to have a license and as he sold furniture, he would also sell refrigerators and stoves. He subcontracted people to put plumbing in homes to support the appliances he’d sold. That warped into the plumbing company.”

Wilson Plumbing has seen many changes over the years. “Back then, it was all concrete, cast iron piping and hand digging. It was hard work. Today we are fortunate; we have backhoes that do a lot of the work.

“In today’s plumbing, it’s mostly PVC. It used to be if you had a three-story or taller building, because of the fumes, if there was a fire associated to a commercial building, you still had to use cast iron.

Certain public buildings and especially UT will specify cast iron because of the occupancy of the building. But now with the admin of exhaust fans in these large buildings, if there is a fire, they can close

air conditioning down; even tall skyscrapers are using PVC,” says Wilson.

“We are very blessed to have many generational customers, some 30 plus years. We don’t just service our customers, we try to educate our customers.

They know us by name and we know them by name. It’s more than just a business transaction. It’s building relationships,” says Chris Siebenthaler, General Manager.

“It all starts with that first initial call.

We give great customer service. We are really lucky; we have a really great crew with all of our plumbers, apprentices, tradesmen, journeymen, and master plumbers. Our apprentices move quickly up to tradesmen. We have a plumber that we brought up from nothing to a journeyman,” adds Siebenthaler.

With 12 employees, the company prides themselves in having a crew that is polite and leaves a jobsite cleaner than when they arrived and who fully test everything before leaving.

Wilson believes their strength comes from serving their community. They support a wide range of local charities and causes that make a difference in peoples lives.

When not working, Wilson and his family like to travel. One of his favorite places to travel to is a little island off the coast of Honduras.

Chris Siebenthaler, estimator, has been with Wilson Plumbing for 18 years.

In his spare time, he is a sponsored kayakfishing/tournament fisherman.

Wilson Plumbing Company is a fullservice plumbing company. -cmw

Construction News ON LOCATION

Ready and able

L-R: Adam Razo, Service Supervisor; Andrew Bruxvoort, Equipment Sales; Max Marin, Yard Coordinator; Greg Sheffler, Sales Coordinator; and Josh Adams, Product Support Manager with Romco Equipment Co. pose for photo at their Round Rock location. -cmw

Construction News ON LOCATION

Flooring the way

L-R: Sara Barry and owners Cindy Butler and Rob Butler of Butler Floors take time for a photo in their showroom at 209 E. Ben White Blvd. -cmw

Austin Construction News • August 2017

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Page 3

Charging ahead

Following the path

L-R: Ryan Binder, Emily Hoffman, and Hazel Binder

Raunel Tejeda, owner of Built on the Rock

passion that stemmed from a young age to build, Ryan Binder, owner of Rhino Construction, always knew, he would own his own company some day.

Ten years ago, he made his dream come true.

Binder got started in construction when he went to work for his father’s company. He started doing smaller jobs on the weekends on his own until the time felt right to make the switch.

“It just got to the point where ambition led me down the road to do my own thing. I’ve always had a passion to build.

When I was 5-years-old, you’d always find me with a hammer and tape measure in my hand or doing something with mom or dad’s tools.

“When I first started, business was great, but the economy took a dive and unfortunately we felt the shock of that. It made it tough for a couple of years, but we are growing and definitely staying busy,” says Binder.

Currently the company is 20 employees strong. Binder praises all his employees, but says one stands out. “Vicente

Rangel, my foreman, just brings happiness to the jobsites and the company. He has such a great spirit.”

Rhino was always a nickname for Binder. When he was working for his dad, he would say, “Hey, get after it.” That’s what he did. It didn’t matter what it was, whether it was sweeping floors, framing or busting down a wall, he would just get after it and so everyone started calling him Rhino, that along with the fact that his first name is Ryan. “It just stuck with me,” says Binder.

Binder enjoys spear fishing, scuba diving off oilrigs and bow hunting when he finds time away from work and his new 7-month-old daughter, Hazel, with longtime girlfriend Emily Hoffman who is also involved in the business.

“I told myself, six, seven, eight years ago, it would be cool to see myself in the Construction News someday,” Binder reflects.

Rhino Construction is a drywall and framing subcontractor that offers in house services such as commercial exteriors like decks, patios, pergolas and shade structures, welding services, even residential remodeling.

-cmw

Gearing up for the future

NAWIC celebrates the graduation of one senior, Crystal Guido, from the Crockett High School Construction Technology program, a 3-year program geared towards intensive study in the construction industry in conjunction with NCCER, OSHA, and ACC. L-R: Crystal Guido and Duane Lardon, Crockett HS Construction Technology Instructor. -cmw

Austin

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aunel Tejeda, owner of Built on the Rock wasn’t planning to start a business when he established Built on the Rock in 2006.

“I was working for another subcontractor at the time and he was asked to do a job that nobody wanted to do. He asked me to do the job. It was 4th of July. I did the work and that’s how it all got started. After that, he kept giving me more and more work and it just started growing from there.

“I originally started my company as Exodus Construction, but when I filed to incorporate it, I found there was already an Exodus Construction in Dallas. I renamed my company Built on the Rock because of my faith. ” Getting started wasn’t difficult for Tejeda, he says. “Because of my faith, as I was walking my journey, everything was being provided, even the knowledge on how to set up the business and what insurance to get. People would come to me and we would be talking about business and they would provide me with the information I needed without me asking them for it.

“It was all being set up for me. I would

run into people who would recommend estimating programs, accounting programs and other programs I needed. Everything was coming together as I was moving forward.“ Seventy five employees strong and still growing, the company focuses only on commercial work. “It was easy for me because I never felt like I had struggled or had to worry. HE was working on it for me and is still working on it. The jobs keep coming our way. Employees keep coming and it’s always in the same flow. In the 11 years I’ve been in business, I’ve never had to take out a business loan.”

Married with seven children, Tejeda is always busy. When not working, Tejeda is a full-time minister. In 2009, he started a ministry to teach people how to live righteously. It’s a small congregation in which people can ask questions and learn how to apply it to their everyday lives.

Built on the Rock is a drywall company specializing in metal framing, drywall, acoustic ceilings, light demolition and the installation of doors and frames. -cmw

Page 4

Austin Construction News • August 2017

Tyler Mason Co-owner Dakota Horizon Where did you grow up?

I grew up in Alamo, NV, which is about 100 miles north of Las Vegas. I’m fourth generation from Southern Nevada and moved to North Dakota about six years ago.

Getting back to my childhood, I was born and raised in Alamo. I left there when I was 19 to go on a mission for my church. I spent two years back east serving a mission.

When you say you traveled east with your church, was that eastern United States or east as in Asia?

I was in Connecticut and Rhode Island. I have three sisters who also left to do missionary work. One of my sisters went to Japan, one went to Brazil, and one stayed here in the states and went to New Jersey.

Tell me about your missionary work?

Our church is the Church of Jesus Christ of Latter Day Saints so you’ve probably have seen the Mormon missionaries, well I was one of those missionaries when I was 19. I spent two full years donating my time on a mission and teaching about the gospel of Jesus Christ.

I tell my son, Levi, you need to go on a mission or go into the military. One of those two things is a good experience. It was good for me. I learned a lot and grew a lot.

Levi, do you have any plans in going into the missionary work or what are you thinking?

Yes, I’ll probably do some missionary service like my dad.

Tyler: He’ll be old enough to go in three more years.

How did you get started in construction?

My dad was an equipment operator in the Nevada test site, Area 51. He was out there working and we would always do jobs in the town that I grew up, Alamo.

I helped build our house when I was in high school and we had a restaurant that I worked at. I worked construction in the summers. It was always something that I enjoyed.

It was definitely by choice and not by “wow, it’s the only thing I can do.” I enjoy construction and the diversity of construction and the types of projects we get to do.

When I came back from my missionary work, I went to work for my dad. In

2005 went into business for myself doing construction. In southern Nevada, I was more of a general contractor.

Growing up, I was always running equipment, always being around site contracting. So with our move to North Dakota and doing business there that is direction we went. We did a lot of commercial.

Last year we did projects in Washington State, Idaho, North Dakota, and we were a little spread out.

Area 51 has the stigmatism of the aliens; did your father ever encounter alien activity?

No, at least not that he was authorized to tell (laughs).

What made you start your own business?

I think from the age of nine I was always doing my own little business whether it was mowing lawns or tilling gardens.

I was being an entrepreneur. It was the American dream to have your own business and build a company that is yours and to have something that you can pass on to your kids. That’s something that has always been important to me.

Levi, are you part of company?

After school and during the summer I help out.

Why did you move your company to Texas?

Two reasons. Oil fields slowed down in North Dakota, which means construction ultimately slowed down. It’s not a very diverse economy up there like it is here. We came to San Marcos to do work for a general contractor and fell in love with the area. We just felt like there was a lot of work here and a better season for work. With the type of work we do, we are very limited in North Dakota with the weather and decided having year-round work was better for our business rather than trying to squeeze it into a four to five month period.

Did your parents support you in your endeavors?

Oh yeah, definitely. I had a lot support from my parents along the way. And even in the business now, they’re partners in the business, both my mom and my dad.

What roll does your mom play?

She handles the bookkeeping and billings even though she still lives in Nevada. We have everything networked together so that she can do things from there and I can do what I do from North Dakota or here.

Do you think your parents will ever move down here?

No (sighs), I think my mom would love it. I’ve been trying to get her to come check it out, but she has acreage and horses. My mom’s a cowgirl. Texas is great for a cowgirl but she’s been in Southern Nevada her whole life. I don’t see her leaving.

What was it like working for your parents?

Typical. It’s not always easy. Working

L-R: Levi and Tyler Mason

for family can be difficult but it was good.

I learned a good work ethic from dad. He has always been a hard worker and so has my mom. I think I learned a lot of the physical aspect of work from my dad, but I learned the business aspect from my mom. They were both very good in teaching me that and patience.

Levi, do you miss your grandparents?

Yes. I only get to see them four times a year.

Tyler: Grandpa is actually going to be coming down here for little bit. He’s getting restless. He wants to come down and help.

Has he been down here before?

He’s never been to San Antonio so he’s excited to come. He’s always wanted to see the Alamo. He’s a very big history buff.

When I was a little kid, we lived in West Texas for a short time, but he never made it to San Antonio. We still have a lot of family in West Texas.

What was it like to grow up in Alamo, NV?

It was a small town, about a thousand people and a hundred miles from Las Vegas. You had to go to Vegas to do any shopping. When I was growing up, there was a very small grocery store and a couple of gas stations. There are a few more things there now, but it is still very small.

It was a very nice community, good people. It’s in the desert, but there’s a lot of water. It’s very green there in the valley.

It gets hot there. The climate is probably a little hotter than here, but not as humid. It’s funny because I never really like the heat in the summer, but after living six years in North Dakota, I’ve grown an appreciation and decided it’s better than experiencing the -30 or a -70 with wind chill.

Have you always worked for your father?

There was a period of about two years that I worked for a general contractor on a condo project in Las Vegas. While I was working for them, my boss and I partnered up in a company called Baring Point Construction. Then I went up to North Dakota and then later on, I started up Dakota Horizon.

When was Dakota Horizon established?

Two years ago in 2015.

How difficult has it been to get into the Texas market?

A lot of people told me it was going to be hard because it’s a good ole’ boy system, but I found so far everyone has been very welcoming. We’re still trying to get more work, more contracts for sure. But I’m fine doing that slowly. The amount of work we have now is sufficient. For the

most part every one has been great.

So, we are keeping up with a slogan that Texas is the friendly state?

Absolutely. Very much so. We have felt very welcomed and have made some very good friends here and feel like it’s a great place to call home.

How many kids do you have?

I have four kids, three daughters and my son, Levi. My oldest daughter Melissa is 17, Machala is 16, Levi is 15 and my youngest daughter, Reagan is 9.

How did you come up with the name Reagan?

My wife and I have always liked the name. I won’t lie, wife and I really liked Ronald Reagan and we just thought that would be a pretty girl’s name.

Tell me about your wife?

Amy was born in Seattle, WA and moved to Las Vegas when she was three.

We met in 1998 shortly after I came back from my mission. We dated for a short time before I proposed to her. It was a very short engagement.

How short?

I met her in June, proposed in August, and we got married in October.

What does your wife do?

Amy works for Delta Airlines on the ramps and she’ll be transferring here.

What are your hobbies?

My main hobby is flying. I’m a pilot for fun I guess you could say, but I enjoy anything outdoors. I’ve been bear hunting. I have a lot of friends who are avid hunters and I tag along.

Do you own your own plane?

I do, right now. I’m probably not going to bring it here. I’m in the process of selling it now. I have a little Carbon Cub, two-seater.

You were involved with a job in Saint Hedwig, TX?

Yes, Homes for Troops. A month ago, we met up with Bill Hager, Hager & Sons, who is the general contractor for these homes. He was needing help with site work for this particular home. Homes for Troops build these homes and turn them over to injured veterans with no mortgage.

Where do you see this company going in the next five years?

I would like to have a fair amount of work with ten to fifteen employees. Last year before coming here I had about 35 employees and really don’t care to get back to that. I would like to have about ten employees with a good client base and reputation here in the area. I think I’d be pretty happy with that. -cmw

Austin Construction News • August 2017

Page 5

Winning big at state

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wenty-nine Outstanding Construction Awards were handed out at the AGC-Texas Building Branch convention held Jun. 18 – 21 at The Coeur D’Alene Resort in Idaho.

Among the winners were (no photos available): Building ($0 – 2M) Barsh Construction (Centex) – Waco Surgical Arts Building ($2 – 5M) Barsh Construction (Centex) – Dewey Park Community Center Design Build ($0 – 10M) CWA Construction Inc. (Centex) – Allen Samuels Alfa Romero Flat Design Build (Over $30 M) Hunt-Zachry, A Joint Venture (San Antonio) – Henry B. Gonzalez Convention Center Expansion

Interior Finish-Out ($2 – 5M) Daniels Building & Construction Inc. (Southeast Texas) – Capital One – Beaumont – Edison Plaza Build-Out

Historical Renovation Mazanec Construction Co Inc. (Centex) – First Baptist Waco – Sanctuary & Other Facility Renovations

Residential Multi-Family Andres Construction Services (TEXO) – Ablon at Frisco Square

Health Care ($10 – 30M) Linbeck Group LLC (TEXO) – Cook Children’s Alliance Phase 1 Industrial/Warehouse ($0 – 5M) Weldon Contractors (TEXO) – American Airlines HDQ2 CUP Renovation Mechanical 3 (Over $10M) The Brandt Companies LLC (TEXO) – The Star Electrical 2 ($5 – 10M) Alterman Inc. (San Antonio) – Bexar Metro 9-1-1 Network District Regional Emergency Operations Center

Health Care ($0-10M): F.A. Nunnelly Company (San Antonio) Baptist Emergency Center – NW Military

Other Specialty Chamberlin Roofing & Waterproofing (TEXO) – Frisco Multi-Use Special Event Center & Dallas Cowboys World Headquarters

Industrial/Warehouse (Over $5M) Pecos Construction LLC – American Airlines Headquarters 1&2 Cooling Towers Replacement

Interior Finish-Out ($500K – 2M) Mazanec Construction Co. Inc. (Centex) – Margaret & Weldon Ratcliff Performance Center

Interior Finish-Out ($0 – 500K) Barrett Building Company (Centex) – KellumRotan Addition – Dr. Pepper Museum

Building ($30 – 75M) J.T. Vaughn Construction LLC (Houston) – Harris County Institute of Forensic Sciences

Interior Finish-Out (Over $5M) Turner Construction Company (San Antonio) – Statoil North American Headquarters T.I.

Electrical 1 ($0 – 5M) Walker Engineering Inc. (TEXO) – Preston Garage

Building ($10 – 30M) Turner Construction (San Antonio) – Thomas Jefferson HS Renovation SAISD

Electrical 3 (Over $10M) Walker Engineering Inc. (Houston) – Houston Marriott Marquis Hotel

Specialty Construction Guido Construction (San Antonio) – Shops at Rivercenter Mall

Exteriors KSC Inc. (TEXO) – University of Texas Dallas – Parking Structure Phase 4

Mechanical 1 ($0 – 5M) MLN Company (Houston) – Independence Plaza

Interiors Southeast Texas Drywall LLC (Southeast Texas) – Education First Federal Credit Union

Building ($5 – 10M) Linbeck Group LLC (Houston) – The Kinkaid School Dining & Learning Center Design Build ($10 – 30M) Linbeck Group LLC (Centex) – Baylor University Hankamer Cashion Reutilization Health Care (Over $30M) Linbeck Group LLC (Houston) – Houston Methodist Outpatient Center (OPC)

Building (Over $75M) J.T. Vaughn Construction LLC (Houston) – George R. Brown Convention Center Improvements Office Building & Garage

Page 6

Austin Construction News • August 2017

Simplifying Sales and Use Tax: A 4-part checklist

Why Should Contractors Care About Cyber Exposures?

Stephanie Thomas, CPA Principal Thomas, Thomas & Thomas PC Houston, TX

Stan Gregory, Safety & Risk Consultant INSURICA San Antonio, TX

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C

hile many construction firms find sales and use tax laws to be almost impossible to understand, answering four simple questions about your construction project will help you understand your Texas sales and use tax responsibilities.

Identifying the property type, project type, contract type and entity type at the beginning of a project will help you determine your sales tax responsibilities.

Once those questions have been answered, understanding your sales tax responsibilities will be a lot simpler.

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.

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.

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.

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 relating to new construction projects performed for taxable entities.

Determining the contract type is very important for new construction projects. If the new construction project is performed pursuant to a lump sum contract, the contractor pays sales tax on the incorporated materials, consumable

supplies and equipment rentals. Sales tax is not invoiced to the customer. If the new construction project is performed pursuant to a separated contract, the contractor can purchase incorporated materials tax free by issuing a resale certificate to the supplier. The contractor must pay sales tax on consumable supplies* and equipment rentals. The contractor must charge sales tax on the invoiced incorporated materials charge.

The applicable tax rate is based on the jobsite location.

Please note that consumable supplies can be purchased tax free under certain circumstances. For additional information, regarding this issue refer to 34 TAC Rule 3.291(b)(2)(B).

Sometimes projects have both new construction and remodeling elements.

If your project has both new construction and remodeling elements, the five percent rule applies. If the remodeling portion of the total project is less than five percent and not separately stated, the project is treated in the same manner as a new construction project. If the remodeling portion is greater than or equal to five percent of the total project and not separately stated, the project is treated as a repair/remodeling project. If the repair/remodeling portion is separately stated, that portion is treated as a repair/ remodeling project.

Conclusion: Determining the project type, property type, contract type and entity type will help you understand your sales tax responsibilities and avoid common headaches associated with sales and use tax compliance.

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 Texas Taxes for The Construction Industry, a tax guide for contractors in Texas, which can be found at www. thomaspc.com or contact Stephanie directly at (832) 559-1564.

yber exposures and the insurance policies designed to respond to cyber-related events have been a hot button within the insurance industry for a few years.

With certain industries, exposures are obvious and abundant, but what about cyber risks related specifically to the construction industry?

Any industry that conducts business over the internet is at risk, and the construction industry is no exception. According to an article in the Miami Herald, “given the increasing popularity of practices such as Building Information Modeling (BIM), Integrated Project Delivery and file sharing between participants in a construction project, contractors may be at increased risk of liability in the event of a data breach. A hacker may be able to access architectural designs, including the designs of security systems and features; financial information; confidential project-specific information; and personal information of employees.”

You may remember retail giant Target being the victim of a cyber attack in 2013, which resulted in tens of millions of customers’ credit card data being compromised. What you may not know, however, is that the source of the data breach originated from a small HVAC contractor who was the target of a phishing scheme.

An employee received an e-mail from someone who they thought to be a legitimate source, and upon opening the e-mail, malware (malicious software) went to work behind the scenes without being caught by the anti-virus software.

In the end, a regulatory commission fined the contractor $218,797 for failure to protect personally identifiable information.

Cyber security experts agree on one thing wholeheartedly: the threat of cyber crime isn’t going anywhere anytime soon. According to information from Travelers Insurance, here are some trending cyber threats to be aware of: Ransomware – malware that is installed on a machine, allowing hackers to extort victims Vendors – even if your company is secure, many business partners may not be Negligent Employees – workers create liabilities accidentally or absentmindedly Hackers – criminals who intentionally attack computers and servers Social Engineering – employees being tricked by targeted phishing campaigns It’s important to note that standard commercial general liability polices do not cover claims arising from these types

of events. Sure, there are Cyber Liability policies designed to respond to certain cyber events, but these policies will be underwritten to ensure a contractor is doing everything they can to prevent data breaches. So what can contractors do to thwart off would-be cyber attacks before it’s too late? To begin, here are a few things every contractor should be doing: Train employees and communicate about cyber security. It is estimated that more than half of cyber fraud could be prevented through better education of end users.

Utilize security software on company servers and devices. Anti-virus software provides real time protection and automatically receives the most current malware definitions.

Ensure firewalls are utilized and updated regularly. Many cyber-related attacks occur because firewalls or antivirus software is out of date.

Encrypt mobile devices used to access the company’s network. All devices accessing network drives should be equipped with hardware and software data encryption.

Secure all Wi-Fi networks. At the office and at jobsites, all wireless signals should be encrypted and secured with a password.

Back up data regularly. Utilize a trusted cloud storage provider.

When it comes to cyber security, there is no silver bullet. No matter how secure a company might be, there is no such thing as “100% secure” when it comes to cyber crime. However, if a contractor does nothing to prevent attacks, they are essentially leaving the door wide open to a growing world of criminals.

When you take appropriate precautions, at least you can rest easy knowing you’re doing everything you can to protect what you’ve built.

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 210805-5915 or sgregory@INSURICA.com.

Process of precast

David Matocha BSCE, Senior Technical Services Manager for FORTERRA and Section Director for ASCE Austin Branch, led an informative tour for the Austin Branch of the American Society of City Engineers (ASCE) while visiting the FORTERRA facility in Austin on April 6th, to observe the precast concrete manufacturing process. -cmw

Austin Construction News • August 2017

Page 7

Confined spaces in residential construction

The Economic Loss Rule and construction defect litigation Part 2: What does the economic loss do?

Varant Yegparian, Associate Schiffer Odom Hicks and Johnson PLLC Houston, TX

L

ast month’s article provided a brief overview of the economic loss rule1. As discussed, the rule is a type of legal sorting machine: put in information regarding the type of claim or loss, and the rule will tell you whether you have a contract-based cause of action or a tort-based cause of action. While this sorting may not mean much, this article will explain why the rule can provide a powerful defense in a construction defect lawsuit. This article, part two of a three-part series, will explain how the economic loss rule can prove to be useful in a construction defect lawsuit.

The Economic Loss Rule, one more time: Why’s it important.

The economic loss rule can tell you whether a legal claim is for breach of contract or for tort. But that is not all it does.

Again, tort damages cannot be recovered in contract – and – contract damages cannot be recovered in tort. And this is precisely why the economic loss rule can be valuable to a litigant.

The significant consequences of this rule relate directly to the types of claims, damages, and defenses that can be raised in a lawsuit. Indeed, if a construction defect claim relates only to a contract (as in the dispute between the project owner and a subcontractor for nonpayment), then the terms of that contract will govern the lawsuit. A court will have to enforce the terms of a contract— something that might have a significant result on the litigation. For example, if the project owner sued the subcontractor for breach of contract, and the contract capped the amount of damages that could be recovered or limited the types of claims that the owner could bring, then the subcontractor would have some options in defending the lawsuit. Again, these terms are part and parcel of the bargain struck between the owner and the subcontractor—it is how they allocated risk.

On the other hand, the subcontractor would not be able to take advantage of these contractual provisions in the case where it is sued for negligence by the inspector. Recall last month’s hypothetical: a city inspector comes out to the job site to inspect the electrical subcontractor’s work. During his inspection, the inspector comes into contact with some faulty wiring, is electrocuted, and sues the subcontractor for negligence. Unlike the scenario above, there is no contract between the subcontractor and the inspector and the inspector’s only claim is for the subcontractor’s negligence. And, the subcontractor would not be able to enforce the limitations or caps contained in its contract with the project owner.

And so, the risks faced by the contractor in this scenario could be far greater than those in a lawsuit governed by a contract.

Conclusion

It might not seem like much, but the economic loss rule can have huge implications in a lawsuit. In complex, multiparty construction contracts, there might not be a direct contractual relationship between the various entities involved in the project. Depending on what goes wrong and who is involved, a defendant may be stuck defending a lawsuit without the protections it bargained for in its contract. Those bargains represent a carefully balanced allocation of risk, and the prospect of facing litigation risk without the contractual protections can be a difficult situation to stomach. Because it sorts between contract and tort claims, the economic loss rule plays an important role in helping defendants in construction litigation reduce their risk by enforcing contractual terms.

Because the economic loss rule is so important, those in the construction industry need to be aware of court cases interpreting the doctrine. Next month’s article will explain recent developments in the case law surrounding the economic loss doctrine and why it is important for those in the construction industry.

Varant Yegparian Schiffer Odom Hicks and Johnson PLLC 700 Louisiana Ste. 2650 Houston, TX 77002 Tel: 713.255.4109 vyegparian@sohjlaw.com

The Texas Supreme Court has described the rule as follows: “A plaintiff may not recover for his economic loss resulting from bodily harm to another or from physical damage to property in which he has no proprietary interest.

Similarly, a plaintiff may not recover for economic loss caused by his reliance on a negligent misrepresentation that was not made directly to him or specifically on his behalf.”

LAN/STV v. Martin Eby Construction Co., Inc., 435 S.W.2d 234, 238 (Tex. 2014).

1

It’s happy hour

Kyle Pennington with Procore sent in this photo taken at the Construction Leadership Council (CLC) Austin Chapter’s quarterly happy hour at Oskar Blues Brewery on July 13.

L-R: Kyle Pennington, Tamar Savinas, The Spire Group; Jeremy Buxton; Hensel-Phelps; and JD Holzheauser; Peckar & Abramson. -cmw

Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX

B

efore beginning work on a residential homebuilding project, each employer must ensure that a competent person identifies all confined spaces in which one or more employees it directs may work, and identifies each space that is a permit-required confined space. The competent person does not have to physically examine each attic, basement or crawl space, if the competent person can reliably determine whether the spaces with similar configurations contain a hazard or potential hazard that would require the permit-space classification. The initial evaluation may be done using existing experience and knowledge of the space by the competent person and does not need to be documented.

Spaces in a residential home may be assistance). considered confined spaces or permit- However, extreme heat in an attic required confined spaces during the can be considered a serious physical hazconstruction or remodeling process. ard such that the attic could be considHowever, the vast majority of the stan- ered permit-required confined space. dard’s requirements only apply to per- OSHA has not quantified how hot it must mit-required confined spaces, and at- be to trigger the permit-required contics, basements, and crawl spaces in a fined spaces requirements. However, residential home – three common spaces heat that is extreme enough to cause – will not typically trigger these require- heat exhaustion (e.g., dizziness, headments. aches, severe sweating, cramps) may im Attics: In many instances, an attic pede an entrant’s ability to exit the attic will not be considered a confined space without assistance and would make a because there is not limited or restricted confined space permit-required. means for entry and exit. For example, an Basements: Basements in a residenattic that can be accessed via pull down tial home that are designed for continustairs that resemble the structure of a ous occupancy by a homeowner are not stationary stairway and do not require an considered confined spaces under the employee to ascend/descend hand- standard, provided the basement is conover-hand would not be considered a figured as designed (e.g., has permanent confined space if there are no impedi- stairs, a walk-out entry/exit, or an egress ments to egress. window installed).

Attics that are determined to be con- Crawl Spaces: Crawl spaces in a resifined spaces would generally not be per- dential home will not typically trigger the mit-required confined spaces because majority of the requirements of the stanthey typically do not contain the types of dard unless they contain a physical hazhazards or potential hazards that make a ard such as an exposed active electric confined space a permit-required con- wire. fined space (those that could impair an natarajan.joann@dol.gov entrant’s ability to exit the space without 512-374-0271 x232

Beware of snakes

M

ore and more workers are encountering rattlesnakes on their jobsites. Blueline Rental Outdoor Sales Representative, Stan Rothman sent in this photo while visiting a J.T. Vaughn Construction jobsite for the Austin Community College Hays Campus Phase 2 Expansion in Kyle.After seeing this, it sparked him to inquire about snakes while visiting other jobsites. Daniel Aguilar, Bartlett Cocke General Contractors, told Rothman they killed 12 rattlesnakes at the New Hays High School No. 3 project in Buda. - cmw

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Austin Construction News • August 2017

Taking home the Golden Trowel

T

he Renaissance Hotel was the setting for the Central Texas Masonry Association’s (CTMCA) Golden Trowel Awards dinner and presentation held on Jun. 16.

The Golden Trowel is the association’s way of recognizing and rewarding the outstanding masonry design of the architects and engineers, the craftsmanship of the contractors and the superior equipment and supplies of the association’s members. –cmw

Honorable Mention Winners: New Stand Alone Construction – Residential MultiFamily (Honorable Mention) The Jordan C.W. Oates Masonry Inc. New Stand Alone Construction – Education-College (Honorable Mention) UTHSCSA South Texas Medical Academy Building Brazos Masonry Inc. New Stand Alone Construction – Education - K-12 (Honorable Mention)

Fabre Elementary Brazos Masonry Inc. New Stand Alone Construction – Government Institutional (Honorable Mention) St. William’s Church Parish Activity Center Comanche Masonry New Stand Alone Construction – Hardscape, Landscape (Honorable Mention) Texas A & M Cenotaph P & S Masonry Inc. New Stand Alone Construction – Industrial/Commercial (Honorable Mention) Hill Country Galleries VFW Buildings 1 & 2 Brazos Masonry Inc.

New Stand Alone Construction – Hardscape, Landscape The 3rd Street Sculpture Project C.W. Oates Masonry Inc.

New Stand Alone Construction – Block (Honorable Mention) Crystal Falls Town Center C.W. Oates Masonry Inc.

Addition to Existing Building – Residential Single Family Scenic Drive Nicks Bricks Masonry Inc. New Stand Alone Construction – Government Institutional Scott & White Marble Falls Hospital Brazos Masonry Inc.

Addition to Existing Building – Restoration Building & Acutme Mental Health at Waco Hospital V2R Masonry Systems

New Stand Alone Construction – Residential Multi-family Market Square Tower Brazos Masonry Inc.

New Stand Alone Construction – Education K-12 Cuero Primary & Elementary Schools Brazos Masonry Inc.

New Stand Alone Construction – Block Humane Society of Central Texas V2R Masonry Systems

New Stand Alone Construction – Education – College University of Texas at Austin, Dell Medical School Education & Administration Building C.W. Oates Masonry Inc.

New Stand Alone Construction – Industrial/Commercial Pioneer Bank Brazos Masonry Inc.

Construction News ON LOCATION

Construction News ON LOCATION

Electric smile

Moore’s the way

L-R: Co-Owner Penny Kruse and Sales Clerk, Jamie Stein of Kruse Electric Service offer a welcoming smile. -cmw

L-R: John Gentry, Counter Sales and Ryan Reyes, Sales Representative with Moore Supply Co. at 201 E. Industrial smile for the camera. -cmw

Austin Construction News • August 2017

Page 9

Laguna Madre Reds

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.

A

s we move into one of the hottest months of the fishing season, I can’t help but be excited about what the month of August has in store for us. We have been blessed with some great trout fishing this year, but the red fishing has been a little off in my opinion.

Earlier in the season we had good action with mixed boxes of reds and black drum, but as soon as May arrived and we started fishing croakers, redfish seemed to vanish. This month we should see an increase in the amount of reds hitting the cleaning table.

One look at a redfish and you know it’s built for brute strength.

With its blunt face and broad-shouldered look, it’s a fish with a fight even before it’s hooked. Unlike the speck-

Jeff Holt of San Clemente, California caught this 35-in. redfish on a recent outing with Steve Schultz Outdoors. Fish was released after photo.

led trout with its long, sleek look and ability to throw hooks, the redfish is honed to test your tackle and strength. The Laguna Madre is home to many species of fish, but to many anglers, the redfish rules the bay.

The months of August, September and October can be some of the best fishing months of the year on the Laguna Madre. The first fronts of fall start blowing in triggering a migration that is about to begin. Scattered redfish will school-up and begin staging in various parts of the bay system before they begin their journey to the gulf. They will be feeding vigorously along the flats and shorelines, fatting up and preparing for winter. You better be prepared for some of the best line-stripping, rod bending action of the year.

One of the best techniques to attack these schools or pods of redfish, is to use your trolling motor to position your boat upwind in order to make long casts without spooking them. Use a 1/4 to 3/8 oz. jighead

with your favorite soft plastic or a piece of dead shrimp to entice the fish. Usually, once the first one is hooked, you can bring the school to you as you reel the fish closer to the boat. If you’re lucky, you can stay on the school for a while before someone notices you or you have to crank the motor to look for another school.

Most of these reds are slot red, meaning they are between the 20-28 in. mark, enabling you to keep three

in this range. Sometimes there are schools of larger redfish (bull reds) which can be in the 30-in. range all the way up to 50-in. plus. These reds are typically the brood stock and are released after photos. However, if one accidently dies or you would like to keep an oversized red, you can retain it with your tag on your license.

The month of August typically ends the summer for vacationers and out-of-town anglers. This relieves a lot of the fishing and boat pressure in our Coastal Bend waters. Busy guides start seeing a definite decrease in weekday charters as most folks prepare the children to return to school and others prepare for the upcoming hunting season. But don’t let all of those signs keep you off the water and away from some of the best fishing of the season.

I still have several open dates for August, (16, 17, 28 and 31). September dates available are 6, 11, 12, 20.

Don’t wait, these dates won’t last long. 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.

Page 10

Austin Construction News • August 2017

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

A sportsman’s expectations

D

uring almost all of man’s existence on this beautiful earth he has had to forage and hunt and fish if he wanted to eat. The grim reality was that sometimes we went hungry because we don’t control nature’s whims. Even when we learned to cultivate crops nature still had ways to leave us sitting down to an empty dinner plate.

We have learned a lot of tricks and skills to give us an advantage over nature’s ways. We can wear good clothes to tolerate the elements. We can disguise all kinds of hooks as good eats for the fish. We can be sneakier and shoot farther and feed and bait and monitor the dickens out of our quarry, but things will always really be just beyond our control.

That’s just how it is supposed to be, always has been, always will be. I think it is nature’s way of defending itself from us proud, big brained humans.

For the first time in history we have drastically changed the way we survive.

We work and earn money that can be exchanged for whatever we need. If we put change in a vending machine, it spits out a soda. We can swipe our debit card and fill up our gas tank and travel far.

Food is selected from a bountiful supply and can be served up fresh right away for just some cash. I can log in online and my new hunting boots will be here tomorrow as long as nothing goes wrong.

Things are great until we apply our modern sensibilities and expectations to nature. Deer don’t get a memo with the time to arrive in the meadow we have paid good money to hunt. Fish chase shad and eat shad, and shad just swim around behind their delicate noses with

Chamberlain Roofing, Buda

no rhyme or reason, they just go where the other shad go and can’t be bothered to notice us much at all.

A quick change in the weather and the ducks you have been planning to surprise might not show up at all, or they moved on last week.

Nature doesn’t care much about man. Natural things just do their best to stay out of our way.

That is why we hire a guide. It doesn’t matter if we want to hunt or fish or shoot the rapids. If we want to have a good chance to be successful and have a good time, we benefit from the help of someone who has spent thousands of hours learning to pursue whatever we are after.

A guide can’t just go out and sack up some fish for us or drag back a big buck every time like going to the grocery store, money in, goods out. It doesn’t work like that. He doesn’t get paid all that money just for the hours he puts on the clock with you. You don’t see all the hours of scouting and preparation or the equipment maintenance and expense. You don’t see all the times that nature has thrown him a curve and disappointed him or sent him home with way better success than he could have hoped for because that is what the natural world does. It is not man’s world, at least not yet.

I am thankful for that!

Half or Full Day Fishing Trips

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

A

It’s a beast!

manda Overman, Travis Roofing Supply, shows off photos taken during their recent fishing trip in Boca Grande, FL hosted by APOC. –cmw

Co-Owner and Vice President, Sara Wilkus shows off the 150-lb. Grouper she caught.

Michael Boy, President and Co-Owner, poses with his catch, a 150-lb. Grouper.

Austin Construction News • August 2017

Page 11

Creating unity on the water

R

ick Varro, Austin Underground Inc. shared these photos from Friday, June 30 on Lake Travis.

Aerial view of the group water skiing.

L-R: Amanda Begg, Tony Franco, Santiago Juarez, Shelby Morgan, Gary Walden, and Priscilla Collister.

Readin’ on the river

Music roll

Austin editor, Carol Wiatrek shares photos of her recent visit to Nashville, TX where she toured the Grande Ole Opry and other sites.

Drum line

Construction News production specialist, Helen Greenwood and her dog, Bailey share a photo of a Black Drum she caught in Port Aransas. -cmw

Karen Davis, Payroll Coordinator at Alterman Electric, is enjoying quiet time by the river reading Construction News. -rd

Page 12

Austin Construction News • August 2017

Austin Construction News • August 2017

Page 13

JOB SIGHTS

Patriot Erectors from Dripping Springs is the demolition contractor and contractor for the Saint Louis King of France Catholic Church 4-car steel garage demo project in Austin.

L-R: Randy Schramn, Brooks Smeaton and Robert Canedo. -cmw

Julio Reyes, GMI Texas (Greater Metroplex Interiors), poses for a photo before leaving the Texas Diabetes & Endocrinology office project for the day at 15842 Great Oaks Drive, Round Rock. Brad Hatton with Sabre Commercial is the superintendent and Tipton Studio is the architect. -cmw

L-R: Abel Perez, Austin Traffic Signal and David DeLa Cerda, DeLa Laguna Contracting discuss drilling preparations for a new traffic signal at 2750 Sunrise in Round Rock. Austin Traffic Signal is the the general contractor for the project. – cmw

Jose Naba, Bore Pro Utility Construction, subcontractor for CenterPoint Energy on the Phase 2 project at Main & Elm Streets in Buda, TX -cmw

AIRistoCATS

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L-R: Bob Lefler, David Sefcik, Wendy Sefcik, Tiffany Groneck, and Allene Noack

aving worked for a large contractor for many years, Dave Sefcik set out to make his own way in the trade he loves. In 1995, Sefcik did just that.

He started his own company, Dave’s Heating and Air.

The business quickly took off proving to Dave that he made the right decision.

After a while, Dave found himself needing help running the business and who better to call on, but your best friend and life partner. Wendy, Dave’s wife, left the stability of an 18-year career with The Department of Public Safety behind her and has never looked back.

When the company first started, they worked out of small building in the family’s backyard. Wendy reflects about that time, “I run the office and we were working from the backyard and I said there really isn’t that much to do, but boy was I wrong. I was doing it all by myself and Dave and another guy were taking care of all the service calls and working all the jobs.”

The company started taking off and had acquired another warehouse space across the street with about five or six crews. “About three years ago, we decided to down size,” adds Dave. “Currently we have two crews and two service guys and myself, plus Wendy and the two girls in the office.”

There are obviously no regrets with the Sefciks. The inseparable dual are always laughing, truly enjoying what they do, and are very proud of their employees.

“Our crews are very serious. They’re all work and no play, but very family oriented. They are like family to us because they have been with us for so many years.

When you find good people you have to keep them and make it worth their while

to want to stay with you,” adds Wendy.

“We like to treat people the way we want to be treated. It’s kind of our motto around here.”

The company services Taylor, Round Rock, Pflugerville and Georgetown. For about eight-and-a-half years, Dave’s Heating and Air was the contractor for the Pulte group in Sun City and decided to back out to slow down and continue to give the quality, personal touch to their customers that they have always been known for.

In their spare time, when it does happen, the couple enjoy visiting their two daughters and their 3-year-old grandson whom they lovingly refer to as the apple of their eye, and going to their retreat home in Conroe.

Their community involvement is all about animals.

“Our passion is animals. We love animals. You’ll notice we have many, many cats around here. People drop them off here because they know we love them.

We rescue cats and love to give to the local shelter. I give to any animal shelter I can because I don’t want animals to suffer and neither does Dave. We’ve had shop dogs, two that just recently passed away from old age. Now we have a little rescue dog that just showed up here. He was just running around the Chick-fil-A parking lot one day and I went in and inquired about him asking if he belonged to anyone and they said no. Well, now he does,” says Wendy.

Dave’s Heating and Air is air condition -ing contractor specializing in light commercial and residential work and recipients of the Reader’s Choice Award for Williamson County. -cmw

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Austin Construction News • August 2017

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

Servicing ahead Grant Dillon, District Manager We Rent It Buda, TX

H

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

I’m cautiously optimistic! The Texas markets have shown steady growth over the years and seem to continue showing this growth.

Have you experienced an increase in business? Slowdown?

We have seen an increase in business.

The industry seems to be bouncing back from the slowdown from the past several years.

What factors are driving this increase/ slowdown?

We benefit from a good market. Central Texas is one of the fastest growing areas in the country. Multi-family housing, schools, medical facilities and general construction projects have impacted our growth. Of course, building customer relationships are what we depend on to sustain our long-term success.

How has this increase/slowdown affected your company and how you conduct business?

The increase in business has allowed us to hire more people and buy more rental equipment. It has also allowed us to open new locations like our new location in Georgetown. Our process of how we conduct business is the same, just on a larger scale.

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

Rental Rates are always a “hot button”. While the cost of doing business increases every year, rental rates are slow to rise. We’re doing more volume, but putting less to the bottom line.

Profit margins are tightening up. We have to do more to make less, whether it is regulations, the cost of new rental fleet or just the cost of employees. The cost of hiring quality staff has gone up significantly.

What are the major changes in the industry in recent years relating to the type of work you do?

I would say the most noticeable change is the fact that there are so many companies renting equipment. Our industry has more competition than ever.

When I first started in this business, there were three or four companies and now there are twenty or thirty. You can’t drive more than a few miles without seeing an equipment rental company.

SERVICE PROVIDERS Sep: Green Building Nov: Architecture & Engineering Oct: Specialty Contractors Dec: Construction Equipment

What is the most significant challenge your industry faces? Labor shortages?

Cost increases?

Overall the cost of doing business make it much more difficult to produce profits. Hiring qualified service minded people in all areas of our business is always a challenge.

What are the cost increases relating to your industry?

Fleet. The cost of construction equipment has risen every year and rental rates have remained basically the same for the past 10 years.

The cost of hiring good quality people is an ongoing increase. You have to be willing to pay for your assets and our people are our asset. Training, insurance, and general wages are up across the board.

How are you dealing with these challenges?

We try to increase utilization and drive revenue. We are trying to buy equipment at a lower cost of ownership and items that give us a better return on investment. In addition, we are trying to create strategic alliances with our vendors to improve our buying power.

and not feeling well about their day-today treatment can make them vulnerable to thinking about a move.

David Reynolds, CEO/Founder DP Reynolds & Associates

What are major changes in the industry in recent years relating to the type of work that you do?

Every emerging generation brings new challenges. The advancements in technology have introduced a generation of candidates in the work force that are often expecting to have instant success, structure and flexibility within their work environments. If you think about it, those in the work force under 35-38 years of age enjoyed growing up with some of the most well-structured, organized youth leagues/activities and have played on or around some of the nicest facilities ever built to date. They are also able to obtain substantial amounts of data and information instantly from the comforts of their dorms or bedroom. They are carrying these modern-day luxuries into today’s workforce.

I’m seeing frustrations in both the candidates and top executives, which I feel is driving down workplace tenure averages. Loyalty is almost non-existent in some cases we are witnessing. This ultimately hurts both sides but especially our clients as projects ultimately suffer.

H

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

A lot of regions across the country have awakened in terms of overall construction, especially commercial.

Dallas and Austin continue to be boom markets as hospitality, healthcare, office, higher education, high-tech and high-rise residential are all under construction or are in the planning stages. Houston’s K-12 cycle remains on the high end.

Incoming phone calls and emails requesting assistance have spiked tremendously since the first of the year. I believe human resource departments were trying to keep within their recruiter budgets in 2016 but have since become overwhelmed by the hiring authority’s demands due to projects and the lack of quality talent.

They are now reaching out more than ever for assistance at this point.

belief among these industry executives that the market will continue to expand at least through the middle of 2018. Coupled with material costs increasing (e.g. steel, concrete, copper), the lack of skilled labor could cause a slight slow-down in the market among quality builders unless owners/equity groups are willing to spend more money to continue hiring the best builders for their investments.

What factors are driving this?

The demand placed on us for finding people within the construction market is driven by consumer confidence in spending money, which ultimately drives building.

Specifically for the Texas market, I believe we may be seeing the effects that Texas is truly a business friendly state where there are fewer interferences for businesses, which may be reason for the unprecedented growth in our state. I’ve read studies and hear various opinions and forecasts from construction executives that I speak with daily that market optimism in the fourth quarter of 2016 took on an even greater intensity in the first quarter of 2017, reaffirming my company’s spike in emails and phone calls this year. There also seems to be growing

How has this affected your company and how you conduct business?

Simply put, the demand for people allows us to narrow the scope of the quality of clients we work with.

Currently, we are generally able to be selective in working with only clients that have an overall good reputation within the industry. A good indicator is a general contractor that has an impeccable reputation with subcontractors or subcontractors that have good reputations with general contractors. If a general contractor client treats their subcontractors well, they typically treat their employees well. For us, this brings an intangible value into play that a passive candidate may not have within another work environment. They may be compensated well, but a taxing workload

What are keys to being successful in the industry?

Hiring and retaining quality people is a huge key and, of course, a competitive spirit, servant’s heart, passion for excellence, and flexibility to change.

We have opportunities every day to create value and make our customers’ buying experience positive. I believe in building trust with our customers through effective communication and delivering on our commitments is essential for success. As we continue to grow and change, our priority will always stay the same. We want to provide our customers with quality equipment and exceptional service.

Originally owned and operated as Allied Equipment Rentals, We Rent It (WRI) in Bryan, TX is a Texas independent construction equipment rental company with six locations. Dillon joined the We Rent It team in 2014 during the acquisition of Longhorn equipment as District Manager of the Austin and San Antonio markets. -cmw

What is on the horizon for your industry?

Equipment telematics are improving.

This allows us to track the location and condition of our equipment. We are also investing in electronics for our sales staff to improve communication. In addition, we are also investing in product training for our mechanics and sales staff.

Clients changing to attract talent Lewisville, TX

What are the rewards of the industry?

It’s fun! Our business is fast paced and never boring. It’s a TEAM effort. It takes everyone playing his or her role to make our organization a success.

What is the most significant challenge your industry faces?

There is a definite skills shortage being felt in the industry, coupled with a tightening of immigration policy by the Trump administration, which may increase labor costs. Clients are being forced to become unique in attracting the level of needed talent. That said, we’re not only focused on clients that have up-to-date market compensation packages, but also have a lot to offer besides compensation.

Regarding the passive candidate, we find they are typically well-compensated

so additional attractions (e.g. fostering of a true work/life balance, project types, a true family feel to the work environment, flexible hours, unique personal office spaces, how a client treats their subcontractors, etc.) are often the appeal that will at least help us in getting them in front of a client.

What are the cost increases?

We are spending a lot more time and effort in finding a passive candidate who is an actual fit and who is seriously ready to listen and explore. Also, due to an aggressive labor war in the market, by the time we uncover or have someone within our network ready to present to our clients, the candidate may have another offer or two in hand from other directions.

At this point, we’ve spent a lot of time, energy and effort in trying to close these deals, sometimes to no avail.

How are you dealing with these challenges?

We try to do all that we can to help educate our clients as to what we are seeing in the market (e.g. unique salary adjustments that aren’t costing any more money to the client, unique ideas as to what the younger generations are truly looking for, etc.) and, sometimes more importantly, to efficiently get good offers in front of a candidate they feel has the skillsets they need.

What is on the horizon?

Again, treating others the way we want to be treated, forming and nurturing relationships long-term, in my mind, are the key components to our success but also keeping up with market trends.

DP Reynolds & Associates is a professional labor recruitment firm specializing in construction, including new commercial vertical construction, manufacturing/heavy material handling and infrastructure. –mjm

Austin Construction News • August 2017

Page 15

NEXT TH MON

GREEN BUILDING

If you would like to represent your company in an upcoming FOCUS, contact your San Antonio Editor for an Interview Carol Wiatrek (210) 308-5800 SAEditor@ConstructionNews.net

Reaching new heights Marvin Ohlenbusch, COO Alamo Crane Service San Antonio, TX

H

ow would you describe the construction industry in general terms? Have you experienced an increase in business? Slowdown?

The San Antonio market seems to be steady. We have seen an increase over last year. I think this may be due the political change. However, the elected politicians need to get busy and deliver what they all promised. They seem to fall into the Washington click when they reach DC – taking care of themselves and forgetting why they are there That hurts the businessmen and women of America.

What factors are driving this increase/ slowdown?

As for my business, I’d like to believe that our prices and how we treat our customers is the driving force behind our increase. We do our best to pay more attention to customers needs, first and foremost, above our own.

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

“Price difference” is a hot issue. The cheapest way isn’t always the best way.

We do our best to let the customer know all the charges up front and not have any surprises at the end of the job. Sometimes, you get rewarded for that. And sometimes it slaps you in the face.

What are the major changes in the industry in recent years relating to the type of work you do?

More competition driven by the

downturn in the petroleum industry the past several years is one of the biggest changes. With that downturn, we are seeing more and more companies popping up and trying to make a go of it.

What is the most significant challenge your industry faces? Labor shortages?

Cost increases?

Finding competent operators is the most significant challenge. Many operators that are looking for work have come from the petroleum sector whereby they went through a training program. Many of those programs were a two to threeday school, and operators received NCCO accreditation.

Another challenge is staying current with OSHA reporting and all government mandates. It’s a costly process.

What are the cost increases relating to your industry?

Portable assistance Melisa Kirkpatrick, Owner The Outhouse Boys Houston, TX

H

ow would you describe the state of the construction industry in general terms? Have you experienced an increase in business? Slowdown?

I would say from our perspective, the construction industry has held steady over the years, but there has been a slowdown in multi-family construction. We are finishing up on our current projects and our clients say they do not have anything else on the books in the Houston area.

What factors are driving this increase/ slowdown?

I think the economy is better in Texas so we have not seen it slow down like other states have.

How has this increase/slowdown affected your company and how you conduct business?

We are a fairly new company. The Outhouse Boys started when the economy was beginning to decline. Our business model is loosely based on maintaining strategic growth while sustaining a loyal customer base.

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

The issue for the portable toilet industry is customer service; making sure you are consistent despite the challenges of any given jobsite. The Outhouse Boys strives to have the best service and most reliable employees. We make sure to keep up with each account and take ownership of each project.

What are the major changes in the industry in recent years relating to the type of work you do?

Changes in our industry include holding the drivers accountable for their daily activities. Our trucks are GPS-

Keeping abreast of regulations and the training that it mandates is an ongoing item. That never changes.

How are you dealing with these challenges?

As in all facets of business, costs are significant issues. Labor, overhead, training, and insurance are just the tip of the iceberg in increasing costs of doing business. We work to be proactive instead of reactive. We try to stay ahead of the game and are constantly staying in touch with OSHA and government entities that regulate what we do.

What is on the horizon for your industry? Changes in technology; changes in codes, ordinances or laws; other?

If I had a crystal ball that one would be easy. As I said earlier, politicians need to remember what they promised before the election and put their promises where their mouths are.

Tax repeal would be a good start.

Health care is probably number one.

Keeping our great country safe is yet another.

What are the rewards of the industry?

The best reward and only reward is a satisfied customer. Satisfied customers come back. When they come back the company profits. Profits roll down the ladder to a profitable company and allowing better pay for employees as well as creating more good paying jobs. Employees that are well paid, well trained and have great benefits, tend to do their absolute best. And they want to do their

tracked so we know when a truck is on the customer’s property. We are also able to use this for jobsites that may be hard to locate or off the grid in every area of the city.

What is the most significant challenge your industry faces?

One of the biggest challenges we face is keeping our employees motivated and engaged in our mission. I believe our working environment reduces the pool of individuals who desire to take on the challenge of a portable restroom driver as a career. We have however, been fortunate to build a solid foundation of dedicated employees.

What are the cost increases relating to your industry?

Fuel is our biggest cost. The second one would be products. We don’t want to over-supply our customers with products that will just go to waste if they aren’t used.

How are you dealing with these challenges?

We are always looking at our routes to see what is the most efficient way to drive through the city. We let our drivers give input on what works the best since they are out there on the road. We give

www.constructionnews.net publishing the industry’s news

absolute best for not just the customer, but for themselves and the company.

Many of our customers would rather have us follow them wherever their jobs are than to have to worry about someone new.

What are keys to being successful in the industry?

There are a few things that can make you successful in this industry.

One is having good sales people that meet with the customer, listen to their needs and make suggestions. Good sales people follow through with dispatchers and operators, and stay in touch with the customer from start to finish. They make sure the job is preformed to the customer’s satisfaction.

Two is to stay with it from start to finish. You’re going to have tough times in any business, but you have to stick with it. Giving up is not an option.

And three, safety is above all aspects of any job no matter how large or how small. It is the most essential of them all.

Even on the smallest job, if safety is not on the forefront it could be catastrophic.

After encountering problems placing equipment on the rooftops of buildings in the early ‘70s as a refrigeration company, Marvin and Margie Ohlenbusch knew something had to change and purchased a Skyhook brand crane.

Seeing the need in the industry in San Antonio another larger machine was purchased. Other companies began using the newly created Alamo Crane Service and the rest, as they say, is history. –cmw

our employees incentive for using the products the correct way and not wasting the consumables.

What is on the horizon for your industry?

I see our clients starting to use more hand-washing stations and containment trays on their jobsites.

What are the rewards of the industry?

The portable toilet industry isn’t glamorous. For us, the rewards are exceeding our customers’ expectations no matter how large or small the project.

The best compliment we can have are customer referrals and repeat business.

What are keys to being successful in the industry?

Being safe, efficient, friendly, and clean.

Briefly describe your company.

The Outhouse Boys is a full-service portable toilet company that strives to be the best in our industry. We want to make sure we provide the very best service to each of our clients.

We started off with an idea on a napkin and are now a multi-million dollar company. All of the partners are now 100% committed to the continued growth and expansion of the company. - te

Texas Style

★ ★ ★ ★

San Antonio Austin Dallas/Fort Worth Houston

Page 16

Austin Construction News • August 2017

A new legacy with roots

K

urt Brock’s family had a successful mechanical business in North Texas for 30 years. When his father decided it was time to retire, Kurt and Keri Brock decided it was time to start their own business. While visiting the Austin area, the couple found the perfect location for their new business, RKR Plumbing.

Established in Jan. 2017, the couple is already making a name for themselves with new and old clients. “We kept the contacts that our family business had and continue a strong relationship with them,” Kurt replies.

“We moved to the Austin area because it’s a great place to live. It’s beautiful and has an artist culture that we love and we wanted to move to an area where we could retire,” added Keri. The new company has a full staff of 10. Which is perfect for the young company with strong family values. “We’re a small family. We take care of each other,“ says Keri.

“We have surrounded ourselves with some great people that are very smart, intelligent and caring,” says Kurt. “Our employees enjoy what they do. They enjoy working for us and want to do a good job for us because they feel and we feel they are part of the family. In return, we enjoy taking care of them.

“We wouldn’t ask them to do anything we wouldn’t do, and they know that. We’re behind them and they know and appreciate that because they haven’t had that anywhere else,” adds Keri.

Getting started in the Austin market was not difficult for RKR. “It is a great market. There is a lot of work going here and there is enough work for everybody.

“We have surrounded ourselves with some really good contractors that have our core values as well and are family oriented. They take care of their people and that’s the kind of people we want to deal with. We deal with some very large ones

Industry FOLKS Neville Spicer Sales Representative Big City Access

B

and some very small ones. The whole key is who you surround yourself with; that’s the only way you are going to be successful,” replies Kurt.

RKR Plumbing is in the process of becoming a HUB certified company. Keri, who is 50 percent owner along with another, who owns 25 percent, is Hispanic, is filing the necessary paperwork.

Being so new in the community, the company, as a whole, has not yet had the opportunity to participate in community activities, but co-owner Ken Oden is very involved and has been. “This is a second career for Ken. He is one of the smartest businessmen you’ll ever meet. He knows everyone,” adds Kurt.

“We are happy to be here, doing what we are doing. I think we picked the right town. We know it is going to be tough, but if we continue to surround ourselves with good people, we know we will be okay.”

RKR focuses commercial plumbing, new construction, design build, retail remodeling, commercial office buildings and hotels. -cmw

orn in Coventry, England, Neville Spicer lived in Coventry until the age of 29. “I’ve just overlapped the amount of time that I lived in England.

I am now 63.

“I claim three sisters. One of them is actually my aunt. She is my dad’s sister and she’s so close to me in age, we grew up like brother and sister. My middle sister who is 60 years old is getting married for the first time this month so I’ll be going over for the ceremony.”

Neville came to the United States by chance if you will. “I chased one girl and married her best friend. My wife is as much Texan as I am English.”

Still married to the girl he chased, Diane and Neville have been married over 30 years. Together they have a 29 year-old daughter, Morgan, who is a graphic designer. With no grandchildren to-date, Neville is excited about his new family addition, an 18-monthold chocolate lab/pit-bull named Rookie, which is still very much a pup.

“We have some property, so when I’m not working, that always creates some work for me, but I love to play golf. I’m middle of the pack, not quite a bogie golfer, but I’m very close. I’m honest about it too.”

Spicer has been in the scaffolding business most his adult life. He was a

Growing demand

scaffold builder before he was a salesman. He did the scaffolding on the tower bridge of London. “It was a very interesting project, scaffolding the two towers.”

He credits long-time friend and former supervisor Reggie Nisbett for introducing him to the world of sales.

“He wrote me a very flowery letter, that I kept, when he introduced me to the world of sales, bragging on the opportunity and righteousness of pushing a company forward.

“I became the subject of a student’s final paper at the University of Texas. His major was film. He was working on all aspects of making movies. He did a short video of me called “TEA.” If you Google my name and the word tea, it should pop right up. It was just a three-minute video of me and my experiences drinking tea.”

Spicer enjoys the freedom and the trust Big City Access puts in him to drive around and look for opportunities and the trust to make good decisions for the company. “I like people.

I’m a social person. Confidence is such a marvelous thing when you are meeting people.” -cm

Building walls

A

fter 31 years servicing the San Antonio market, Tony Ridout, managing shareholder of RidoutBarrett CPAs & Business Consultants never dreamed his company that he started in 1986 would have grown to have two locations.

As of July 1, RidoutBarrett acquired long time CPA firm, Freemon Shapard & Story, CPA’s (FSS) in Austin. The second office of RidoutBarrett is located on the northwest side of Austin at 3305 Northland Dr., Ste. 100.

“Never in my wildest dreams did I ever think that my firm would grow to be this big. I think being in the construction industry helped. It is such a tight-knit group of people. Word of mouth is wonderful.

“We have a significant client base there and we felt like it was a market that could use another construction accounting firm with a local presence instead of working it out of San Antonio. Austin has such a great construction base, it is just booming. It’s a great opportunity for RidoutBarrett to be in Austin and it’s a great opportunity for Austin to have us there, too.

“We get a lot of referrals from bonding agents telling us we need to come to Austin,” say Ridout. So when the opportunity presented itself, Ridout and his partners, Milton Barrett, Kathleen Dvorak, Dustin Michalak, and Melanie Geist made the decision to acquire FSS

FSS who has been in Austin and RidoutBarrett began talks in February.

“We kept their employees which was important. We will transition the work there. FSS mainly did tax work with a focus on real estate and professional service taxes. We’ll be adding our construc-

Randy Binder, estimator and Katherine Binder, president of Katco

Tony Ridout, Managing Shareholder, RidoutBarrett CPAs & Business Consultants

tion services to their services.

“We became established in the construction industry almost since day one. I had a bunch of contractors as clients and when I opened my practice, specializing in construction helped tremendously.

“Contractors have special rules that apply on the accounting side as well as the tax side, so we will be bringing our expertise to the Austin office and train them because they do not have the background in construction. Our plan is to hire some construction specific folks.”

The firm, now almost 60 employees strong, plans to host a grand opening once the transition is settled in.

RidoutBarrett is a certified public accounting firm specializing in construction with offices in San Antonio and Austin.

-cmw

W

hen Randy and Katherine Binder got married, Randy was a superintendent for Pizza Hut. Having six children jointly, one together, the couple decided it was time to start their own business.

In 1992, Katco was incorporated. Six months into the new business, Randy had become overwhelmed with bookkeeping and encouraged, then stay-at-home-mom, Katherine to get involved.

“I set up an office in our bedroom, bought my first computer and knew nothing about it and nothing about construction. In addition to three horses, six children and a new business, I decided to take some Quickbook classes and learned a lot from trial and error, then took off from there,” recalls Katherine Binder, president of Katco.

“We started out with only Randy and one other guy, Manuel. By the end of the first year we had three employees. Today, we have a steady crew of twelve.”

“They are an amazing crew. Our main supervisor, Arturo, has been with us for 25 years. We have five other employees that

have been with us 15- plus years. Our crew is steady. You can count on them. We have a good reputation of getting work done on time with quality workmanship.”

Performing drywall construction, interior demolition, ceilings, and doorframes, the company keeps a steady pace. Within the next five years, Binder says she would like to see them with another estimator and an assistant for her so she can spend more time with her horses.

Katherine loves horses. She‘s been riding for 40 years and currently still rides in her spare time at their ranch in Llano.

Horses aren’t the only passion of the Binders. When you walk into their office, their three dogs greet you. Charlie, their chocolate Labra doodle just melts your heart with his loving nature and greeting eyes.

If the Binder name sounds familiar, Randy and Katherine Binder are the proud parents of Ryan Binder of Rhino Construction.

Katco, a woman-owned drywall contractor servicing Austin and the surrounding counties. –cmw

Austin Construction News • August 2017

Page 17

continued from Page 1 — Basking in the sun someone from TDLR come by and tell us that we were the youngest in the state at the time, but that was eight years ago.”

The next step was to utilize what they we were doing in college and move into the solar energy market. Not just solar panels, but also energy storage and batteries. In 2012, HE Solar was established.

“We’re still mom and poppin’ it, but we are actually enjoying our size. We currently have four employees. We are able to get our jobs done because Derrick and I will put our tool belts on too.

“We do a lot of residential, but we are seeing more and more of a shift in commercial as well. It is definitely a segment in which a lot of business owners or landowners can take an advantage of if they have the high loads that are typical of air conditioners and things like that.

“Solar energy is essentially the same energy technology but just has different ways of deploying it. A solar panel is made of semi-conductors that when ex-

plosed to sunlight start creating energy flow within their cells and from there a current is formed. We capture that energy and feed it into the grid. It gets more complex than that. The other key component in the system is an inverter, and what it does is takes the DC electricity from the solar panels and converts it into an alternating current, and that is what is used throughout our homes and businesses. Alternating electricity is what is used throughout the United States. You have to switch between the two processes, but it’s an efficient process,” continues Eric.

When not facing the elements of Mother Nature installing solar panels, the two brothers enjoy spending time with their children. They each have two young children ranging in age from 4 to 1 year of age.

HE Solar is a solar power company offering premium solar energy systems for Austin and its surrounding communities.

-cmw

continued from Page 1 — Still digging ditches

As time would have it, Phelps got tired of running crews and jobs and decided it was time to venture out on his own. In 1998, JL Phelps Plumbing was established. He reincorporated the company six years ago with a mechanical division.

After acquiring the proper licensing, the company, on the mechanical side, began performing work of processed piping, natural gas, medical gas, nitrous oxide, and oxygen for hospitals and dentist offices in addition to chillers and boilers.

The company’s main focus is commercial and industrial work. Hospitals, fire stations, dental clinics, building, restaurants and schools are the bulk of their work. “Occasionally we will do a house here or there. If we do a house, it’s usually a pretty big custom house for a contractor’s friend or buddy,” says Phelps.

“The first commercial job I did as JL Phelps Plumbing was a McDonald’s,” Phelps recalls.

When Phelps first started the company, he was a lone ranger doing all the work

single handedly. Today, the company has nine trucks and 12 full-time employees.

“About the time I started out in 1998, we were going through a recession, it was nothing like it is now but we were steadily growing. Today, Austin is growing so much, there is no way I can bid everything that comes through.”

Phelps wife, Alma, is his right-hand overseeing the office operations, answering the phones and keeping everyone on schedule.

An avid outdoorsman, Phelps enjoys bow hunting, duck hunting, and fishing.

Once or twice a year, Phelps treats the guys in the shop to an offshore fishing trip.

Phelps continues to work on the jobs just as he did in the beginning. He still gets in the ditches with guys. He believes in showing his guys he’s one of them and that hard work and determination is the key to success.

JL Phelps & Associates Plumbing and Mechanical LLC is a plumbing and subcontracting company. –cmw

continued from Page 1 — Alternative education structed to provide covered structures at the student drop-off lanes.

A city road extension, set to be completed this summer, completes traffic circulation within and approaching the campus.

Vice President and Project manager, Mike White, Project Superintendent, Rick Elledge, and Field Engineer, Naomi Ruhe, worked closely with the city of Austin, the Owner’s program manager, Project Management Services, Inc. (PMSI), and the design team led by HKS Inc. to ensure the project was completed on time.

Starting in mid-June and completed in mid-May, with no real weather delays, the $6,400,000 project took ten months to complete, start to finish.

Collaboration efforts by the subcontractors, general contractor, design team and Owner proved effective resulting in this successful project. “Everyone worked very well together as a team from beginning to end. The design team’s dedication to speedy document reviews and quick turnaround times on responses made this project run efficiently,” says Field Engineer, Naomi Ruhe. George Picken of CapStar Electric states, “CapStar Electric had a great experience working on this project with Lott Brothers Construction. Their experience and support staff is second to none.”

“The client, organization and the students make this project unique and we are proud to be building for them,” says White.

By 2022, IDEA will operate 173 schools in 10 regions educating a hundred thousand students on the road to and through college. This will put them on track to become the largest producer of low-income college graduates in the United States. This growth will increase the number of low-income graduates in the region by 50 percent, (obtained from IDEA Public School’s website.)

Ranger Excavating, Lobo Excavating, Wolff Construction, SK Commercial Construction, CapStar Electric, Fox & Hearn Inc.

Mechanical Contractors, Air Craft Inc., TCM Enterprises, Action Decorating and Texas Fifth Wall Roofing Systems were the main subcontractors involved on project. Air Craft Inc. Project Manager, Phillip McAllister says this about being a part of this project, “Working with the Lott Brothers team of Barrett Schulz, Naomi Ruhe, and Rick Elledge on the IDEA Primary School project was a pleasure. The ease in which it is to have questions answered, information forwarded and problems solved is an asset on any project, but especially with them!”

Brian Kiddy, TCM Enterprises stated, “The IDEA Rundberg Primary School project was one of TCM Enterprises’ most enjoyable projects to date. Rarely does a project progress to its end without a proverbial hitch, but the professionalism and teamwork displayed by Lott Brothers, HKS, and the rest of the trades was unparalleled. We finished on schedule, the construction documents were as clear as one could hope for, and there were a bare minimum of changes to our contracted scope of work. We at TCM are eager to work with this team again in the very near future!”

“The positive experience with the owner and architect has gained repeat work with the owner and continued our long-standing relationship with the architect. We are committed to making each building experience a rewarding one,” states White.

LBCC will be breaking ground soon on a new project for IDEA Public Schools in Pflugerville. The first phase of the 62,000sf project will include a new two-story classroom building, administrative area, gymnasium, cafeteria and kitchen. The project team will include PMSI as the owner’s program manager and HKS, Inc. as the designer/Architect.

Lott Brothers Construction Company Ltd is a general contractor with over 28 years experience in the construction industry. - cmw

FAKE NEWS V

irtual Tools hit the market hot and heavy July 20. This high tech tool system is sure to be a surreal success.

Imagine never having to worry about loosing your hammer or drill again. The sophisticated imagery of Virtual Tools is so realistic, workers actually believe they are using the real thing.

The technology is all in the belt and special microchip that sends impulses to the brain creating the type of tool the worker needs. If a worker, breaks his hammer, he merely creates an imagine of a hammer in his hand and, wha-la, the worker, thru the impulses formed, now has a working hammer that is fully functional.

L

ooking for qualified ditch diggers.

Look no more. Dawg Ditches of Texas has scratched its way into the Texas construction market. These mighty four-legged diggers can dig through the toughest of soils and at a minimal cost of a 9oz. sirloin and a gallon of water every two hours.

Page 18

Austin Construction News • August 2017

Association Calendar

Content submitted by Associations to Construction News ABC Central Texas

NAWIC

Associated Builders & Contractors

Nat’l Assn. of Women in Construction

Aug. 9: Meet the Contractors, 4:00 – 6:30 pm, Norris Conference Center. For more info, call 512-719-5263

Aug. 2: Chapter Meeting, Big Daddy’s Burgers, 9070 Research Blvd., 4pm – 7pm.

For more info, call 512-593-1012 Aug. 16 – 19: 2017 National Conference, Hyatt Regency Orange County, Anaheim, CA. For more info, go to www.austin-

ACEA Central Texas Masonry Contractors Assn.

Aug. 11: Westwood Warrior Football Booster Club Luau, Balcones Country Club.

For more info, email solozone@att.net

AGC Associated General Contractors

Aug. 10 - 11: Gulf Coast Classic Fishing Tournament, South Padre Island. For more info, call 512-478-4691 Aug. 24: Sporting Clay Tournament, Capitol City Trap & Skeet, 8707 Lindell Ln. For more info, call 512-442-7887

AIA American Institute of Architects

Aug. 3-4: 2017 AIA Austin Summer Conference, Norris Conference Center, 2525 W. Anderson Ln. For more info, call 512452-4332

CTMCA Central Texas Masonry Contractors Assn.

Aug. 2: TMC Annual Convention, Hilton on the Riverwalk, San Antonio, TX. For more info, call 512-312-6657

IEC

nawic.org

SEAoT Structural Engineers Association of Texas

Aug. 24: Meeting, Maggiano’s Little Italy, 10910 Domain Dr., Ste. 100, 12:00 noon. For more info, call 512-301-2744

TAB

Round-Up Texas Traditions Roofing welcomes Wes Strahan as a roof adviser for the company.

Strahan will focus on building relationships with customers and assist them with choosing the best solution for their roofs. Strahan has a Master’s Degree in School Administration from Lamar University and spent 30 years in public education. –cmw

Round-Up Submissions

Brief company announcements of new or recently promoted personnel, free of charge, as space allows.

Submit Info & Photo: AustinEditor@ConstructionNews.net (210) 308-5800

Serenity

Texas Association of Builders

Aug. 2 -3: 2017 Sunbelt Builders Show, Hilton Anatole, Dallas, TX. For more info, call 512-476-6346

TCA Texas Society of Professional Engineers

Aug. 22: 2017 Houston Sporting Clay Shoot, Greater Houston Gun Club; 6700 McHard Rd., For more info, go to www. texcon.org

TSA Texas Society of Professional Engineers

Aug. 24 - 25: TxA Prosperity Conference.

For more info, call 512-478-7386

Independent Electrical Contractors

Aug. 16: Meet & Greet, Abel’s on the Lake. For more info, call 512-832-1333

NARI Nat’l Assn. of the Remodeling Industry

Aug. 16: Social, 5:00 – 7:00 pm, BMC Design Center. For more info, call Kayvon Leath at 512-375-2601

While out and about interviewing contractors in the Round Rock area, Construction News editor happened upon an extraordinary sculpture exhibit on Chisholm Trail Road at Chisholm Trail Crossing. – cmw

Austin Construction News • August 2017

Page 19

Bigfoot doesn’t believe in you either

July 4th on the beach

Big Foot making his way down to the Guadalupe River.

S

ightings of the legendary Big Foot have been around for years with sightings throughout North America and have become somewhat a part of American folklore. While most sightings are believed to be hoaxes, many believe it is real.

Big Foot is a cryptid, which supposedly is a simian-like creature and is said to inhabit forests. He is usually described as a large, hairy, muscular, almost humanlike animal ranging in size from 6ft, 7in to almost 10 feet tall. Covered in hair described as black, dark brown or a dark reddish color with a pronounced eyebrow and a large, low-set forehead and big eyes.

Scientists have disregarded the existence of Bigfoot and believe it to be a combination of folklore, misidentification, and simply, just a hoax, rather than a living being. Noting the lack of physical evidence after centuries of investigation, numerous creatures would have to exist in order to maintain a breeding population. A small group of investigators are unrelenting in their interest by occasional new reports of sightings.

European Americans first recorded the name “Bigfoot” in the late 19th century, although Spotted Elk, also called Chief Big Foot, may have been the namesake for two fabled marauding grizzly bears in the late 19th and early 20th centuries each nicknamed, Big Foot. This may have inspired the common name of the half ape-half human creature affec-

FINALLY!

A Coffee Cup For The Left-Handed

tionately known today as Big Foot.

Well, he’s real! Big Foot, Sasquatch, or what ever you want to call him was spotted on his way to enjoy some relaxing time floating down the Guadalupe River. True story! -cmw

Dana Calonge, Construction News, and her sister spent July 4th weekend at Cape Henlopen Beach, Delaware

Page 20

Austin Construction News • August 2017