Houston Construction News August 2017 by Construction News

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Volume 14

Number 8

AUGUST 2017

No room for failure

Blowing bubbles

L-R: Chris Harclerode, owner, and Jose Valencia, partner

Paul Stroade on his off-time enjoying his backyard

hris Harclerode, owner, and Jose Valencia started Advanced Glass Solutions only six months ago, but the company is quickly becoming the goto for commercial glass installation throughout Houston and the surrounding areas. According to Valencia, it was an “overnight decision” for Harclerode and him to start their business. “Doors opened up and we had endless opportunities to do what we needed to do to make this happen.” Valencia admits that it’s been “one good adventure so far.” They know this is just the beginning though, and there are some naysayers out there, but they refuse to listen to them. “We took a chance, but we came in with our eyes wide open. We knew what

we were getting ourselves into and we put in 100 percent every day. Chris and I are up here seven days a week.” Jose gives credit to Harclerode by saying he made this opportunity possible and that “no matter what, he’s always going to have his back.” It’s evident that failure is not an option for the company. “So far we haven’t seen a downside yet, and we don’t want to. All we can do is keep striving, keep moving,” Valencia shares. That’s what they have been doing. After acquiring a warehouse in the Spring Branch area, they spent two months building an office space upstairs with a kitchen area. The company was given its first big break from a contractor Valencia has continued on Page 13

aul Stroade and Chad Kirby come from different backgrounds but came together to create F3 Foam. Stroade’s background is in finance and accounting in the construction industry, and Kirby worked in construction with a foam insulation company for 10 years. “Both of us were at the point in our lives where we wanted to own our own company and control our destiny,” Stroade said. “We were both nearly 40 years old and knew it was the time to do it. We sat down one day and decided to start a foam company in addition to the construction.” F3 Foam started in Nov. 2015 after examining the landscape of the growing Houston area market.

“We live on the north side of Houston, and Conroe was named as the fastest growing town in the United States,” Stroade said. “Montgomery County has to be one of the top counties in the state. We saw all the construction spreading out here and it was what Chad knew best.” F3 Foam has two trucks and seven employees, but that will change before too long. “We are growing so fast, it’s hard to keep up right now,” Stroade said. “We’re as busy as we’ve ever been and are really in need of expanding our fleet with at least one or two more trucks. “You don’t want to grow too fast because you can’t afford to string out continued on Page 13

Far from basic

change with the glass wall space halfway through the project, Bennett and his team were still able to complete the project on time. “The space has a very cool layout and front entry area for clients with the LED backlit glass panel flat screens built into the portal structures,” Bennett explains. Designer Holly McKenzie, with Carson Design Associates, helped create a space that is modern and smart. The conference room includes a U-shaped white table with white office chairs. Unlike most conference rooms, which can seem stiff and stuffy, this one is open and provides space for clients and employees to walk around. The window space has a slanted design at the top, which makes the room seem larger as well. The focal point of this room is the multi-screen wall display. This allows for interactive presentations and employees can hold meetings via Skype or

pon entering the new Accenture office, a person might feel like they are stepping into the future, and they are – the future of construction and design. Travis Bennett, the Project Manager from Basic Builders Inc., was able to complete the 6,400sf renovation in 12 weeks, even with some major setbacks. “We had some issues with the city approving some of our materials that were being used, but I was able to get approval in the end,” shares Bennett. Accenture uses strategies with innovative technology to help solve their clients’ challenges and they needed an office space to project that. The NanaWall glass systems, which were installed to help create a high-tech, futuristic look and feel, also form an area that is open and welcoming. Although there was a major design The entrance to Accenture’s office provides multiple computer stations.

continued on Page 13

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Houston Construction News • August 2017

Winning big at state

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

Houston Construction News • August 2017

Page 3

Keeping you cool

John Crosby, owner of Katy Blinds Commercial

ohn Crosby, the owner of Katy Blinds Commercial, has been in this business for almost 18 years, but he came from a completely different career field. Before working in the construction industry, Crosby was a CPA. After moving back to Katy from the Dallas area, he wasn’t making money like he wanted, so he looked for something new. Him and a friend created Katy Blinds and Shutters and worked part-time while keeping their full-time jobs. When that became too much, they devoted all their time to Katy Blinds and Shutters. They worked together for 15 years. Crosby started picking up more commercial work during that time and realized there was a lot of opportunity in that section. He started running the commercial side and his friend started running the residential side. “We had grown into two different businesses and we just split the business into two, so we are exclusively commercial

and he still runs Katy Blinds and Shutters, which is a residential business.” What’s fun about the company for Crosby is that he is putting food on the table for his employees and their families. He also likes being able to drive around town and point out the projects they had a hand in. “Even though I’m not in the field hanging shades, it’s satisfying to have a tangible product. We can start a product from scratch, and at the completion, see what we’ve accomplished.” Katy Blinds Commercial offers miniblinds and roller shades. The roller shades are more popular because they can be manual or motorized. A project they completed downtown has automatic motorized shades, which are run by a computer. “There’s a computer model built into the software that knows where the sun is every minute of the day, every day of the year, and which windows it’s shining in. The software controls the shades automatically.” A major project they are wrapping up right now is the Millennium Cambridge, a 22-story residential tower in the Medical Center. They also just completed a multistory senior living center on Shepherd and Kirby. Their future projects involve renovations at the Menil Collection as well as a building for the Museum of Fine Arts Houston. The company supports The Boys and Girls Company, a ranch in Southwest Houston with a bunch of homes that supplies a safe place for kids whose parents can’t provide a stable home. They also support Camp Hope, which helps veterans with PTSD. Katy Blinds is a commercial window treatment, blinds, and roller shades supplier and contractor to the commercial property and general construction industry. – te

YOUR HOUSTON CONSTRUCTION NEWS EDITOR TANYA ERICKSON If you are a construction-related company and would like to appear in Houston Construction News, contact Tanya for an interview: (832) 595-0091 HoustonEditor@ConstructionNews.net

Houston

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

Publisher . . . . . . . . . . . . . . . . . Buddy Doebbler Editorial/Production . . . . . . Reesa Doebbler Managing Editor . . . . . . . . . . . . . Carol Wiatrek Production Manager . . . . Helen Greenwood Administration . . . . . . . . . . . . . . . . Terri Adams Account Manager . . . . . . . . . . . Dana Calonge If you are a construction-related company in Harris, Ft. Bend, Galveston or Montgomery counties and are not receiving a free copy of the Houston Construction News, please call for a Requester Form, or visit our website. The Houston Construction News (ISSN 15477630) is published monthly by Construction News LTD., dba Houston Construction News, and distributed by mail to construction-related companies in Houston and surrounding counties. All submissions should be mailed to our editorial offices. We reserve the right to edit any materials submitted. No fees for materials, copy or photographs submitted will be due unless agreed upon in advance in writing. Submissions will be published at our discretion on a space available basis. Construction News, Ltd. , dba Houston Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error. Publisher reserves the right to reject any advertisement at any time. © 2017 Construction News, Ltd.

Industry FOLKS Pat Rothman Tool Technician Metal Building Supply

o start the day at Metal Building Supply (MBS), Pat Rothman and another employee open the store and wait for everyone else to arrive. After that, Rothman sets to work in his own little building. He picks up the tools that need fixing, which is pretty much everything. “Battery tools, all the electric tools, and some generators, air compressors, trash pumps, and basic construction tools.” In other words, if it’s broken, he can probably fix it. Before becoming a tool technician, he worked in a printing press, but when home computers and printers became popular, there wasn’t much need for his position. He turned to construction and taught himself most of what he knows. He worked for MBS for three years, came back to MBS, and has had six successful years since. Rothman says the best things about his job are “how lax it is and the challenge. They’ll bring something in I’ve never seen before and I have to try and figure out what’s wrong with it, and then try to find parts for it. A lot of times, I find out the parts aren’t available because the tool is over 10 years old.” Rothman has his own building and says he likes working out there alone. “All my jobs have been where I’m off by myself, so it works out.” Upon entering, it’s a little overwhelming with the amount of parts that are stored away, but Rothman says every time there’s a

part he needs and doesn’t have, he orders more to keep in stock for next time. Although there are shelves and shelves stocked full, “I know were everything is.” That’s all that matters, right? When he’s not repairing tools, he likes to fish in fresh and saltwater as well as bird hunt. “I liked to duck hunt when I was younger, but it’s too much work now. It’s easier for me to go in my backyard and shoot dove.” Born in El Paso and raised in Alief, Rothman is a Texan through and through. He loves this great state and is the proud owner of an acre of land in Needville and says one of his hobbies is maintaining that land. He’s got a heart for dogs and owns “two and half.” The “half” being one that is not quite his. The big one is a pit bull and Rothman describes him as “the nicest dog in the world.” He also owns a Dachshund and the other one, which he is about to have, is a small mutt and according to him, “those are the best kind.” It’s easy to tell that Rothman enjoys what he does and that he loves the challenge of receiving a new tool and discovering how to fix it on his own. - te

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Houston 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

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.

Construction News ON LOCATION

Supplying all your hardware needs

Service Deere to construction

Maintenance Builders Supply has knowledgeable employees like Chad Felchman and David Manuel who can help you find the hardware that you need. -te

The employees of Brookside Equipment Sales, Inc. in Katy stand around one of the compact skid steer loaders available at this location. -te

Houston Construction News • August 2017

Page 5

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

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).

Construction News ON LOCATION

Treating windows right

Jeremy Green, Gerardo Sanchez, and Abner Assis with Katy Blinds Commercial are preparing to head out to install blinds at a new location. -te

Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX

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

Building members

he National Association of Women (NAWIC) Houston Chapter was one of the many associations, contractors, and vendors that attended the Blue Book Event held at Minute Maid Park. NAWIC had several ladies sign up to join the active chapter. -te

Page 6

Wayne Schramme Partner Schramme Construction Richmond, TX

ayne Schramme took a leap of faith by jumping into the construction industry and, 38 years later, it’s paid off for him and his family. Tell me about when you were younger. I was born and raised in Rosenberg, TX.

What did your parents do? My mom worked in the meat department at Kroger almost her whole life. My dad was involved in the construction industry. What was your introduction to the construction industry? In high school, I spent my summers working jobs in the building trades, roofing, remodeling, and working with my dad at his site work business. His small company hauled dirt and gravel, built home sites, and installed driveways. I didn’t really get a chance to work with my dad though, because he had me doing the “runt stuff.” I never learned about the business itself. Basically all I did was help him fix flats and work on equipment. He passed away at an early age of 42, right after my high school graduation. Did you continue in the construction industry for him? When he passed, he had some obligations he needed to fill. He had some contracts that needed to be fulfilled. I just started shredding that summer and finished those projects for him so it wouldn’t leave his clients behind. Here I was, 18 years old, just trying to figure out what I wanted to do in life. A few weeks later, I enrolled at Sam Houston State Uni-

Houston Construction News • August 2017

versity, but wasn’t sure at the time what I was going to do – I was lost and didn’t know what to do with what my dad had started; he was just a one man show. Trying to figure out who all his clients were and ask if they still wanted their projects completed and deciding if I wanted to go to college was hard. I was torn between the two. I knew I had some blood instilled in me after watching my dad do some dirt work, and I figured I could do that. There was a sand pit beside our house and I decided that I would bid for some overpasses that were supposed to be built along Highway 6 at that time. I was given a chance by the superintendent, even at only 19, to work on the project. That was the deciding factor in me not going back to school. What was your experience before Schramme Construction? I had just graduated from high school and my brother Bobby and I decided to bid on that highway overpass job, furnishing the dirt to build the overpasses. We got lucky and the contractor took a chance on some young guys fresh in the business. Afterwards, we started bidding on site work for other projects. Things were looking good for us, then the ‘80s came around and the economy went down and caused the construction industry to go down, too. After Bobby and I paid our extended debts, we were pretty much broke. We both had to take odd jobs for a year or two to make ends meet. How is it working with your brother? Working with family is not always easy. We both have our own opinions and ways of handling things, but we always come together in the end. What made you two want to start your own company? It was already established through our dad. It was started through him. To keep it going meant us getting these new jobs. In the beginning it was easy. After that overpass project, we continued to get more work, and the company just continued to thrive. What were the challenges of starting the business? After we got the highway job, life was good. We were working every day, we were making money, and things were fine. When the bottom fell out of the con-

struction industry, we ended up having to sell our equipment for 50 cents on the dollar and pay off all of our debts. We didn’t know what was going to happen, so we took odd jobs. We went back to what we were doing before. After the economy started picking back up, Bobby and I started bidding our site work on the school district projects. This is where we started building the business back up again. We have been very lucky and have done many school projects. We’ve also worked on other projects such as car dealerships, churches, Walmart, Sam’s, Target, hospitals, convenience stores and Academy stores. What are the challenges and rewards of having your own business? As you can see, being in business is not all fun and games. It’s hard work, a lot of responsibilities, and long hours away from your family. If you work hard though, the rewards are great. What do you like to do when you are not working? I like to hunt, fish, play golf, and visit with family and friends. I’m in the process of building a barndominium in Matagorda with an old high school friend and plan on doing a little fishing, relaxing, and enjoying family and friends. Do you have any children? I have a daughter, Brandi, and her husband’s name is Houston. They have given me two grandsons who I adore and love spending time with. Hopefully, they’ll be my fishing and hunting buddies in the future. Tell me about your wife. She’s wonderful. She takes care of everything when I’m busy working. We met when were young through some mutual friends and just hit it off. When I’m too busy handling things at work, she remembers all the other things that need taking care of – myself included. What are you most proud of? Keeping the company going, surviving, and having another day to look at things. Who has been your biggest influence? John Campbell. He was the superintendent for the highway project that I bid on for the first time. Back then, there

were still party lines on the phones, and he would get to the office at 6am, pick the phone up and call me. After about 10 or 12 rings, he would put the phone down without hanging up, get in his truck and drive around, then come back and check to see if the phone was still ringing. He taught me a lesson with that – construction starts no later than 7am. He also said I was going to do just fine, but I needed to pay my bills on time to my vendors so they would continue to work with me. He was also the one who called me after the downturn in the ‘80s and wanted me to bid on the project for the new Shriner’s hospital in Galveston. After that, the jobs starting coming in. He helped me get started in life and he helped me get started again when construction came back. Is there anything else you want to share? The industry is somewhat like the oilfield. The oilfield can go up and down with the times, and construction can do the same thing. It’s happened before when we almost lost everything in the ‘80s. It’s a tough industry and you don’t want to start anything blind if you don’t have to. You need help along the way. Pick and choose the contractors you want to do work for so you have a good idea of them paying their bills because if they don’t pay you, it’s all on you to pay everyone else. I would advise that to anybody starting out in the business. -te

Ridin’ in style

Steven Terrell and his daughter Stormy taking an evening ride. Terrell is an employee for Remedy Roofing. -te

Houston Construction News • August 2017

Page 7

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.

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.

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

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

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 speckled 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

FINALLY! A Coffee Cup For The Left-Handed

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

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.

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Houston 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

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.

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.

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

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

Chamberlain Roofing, Buda

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.

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.

I am thankful for that!

Hansel Group

Submitted to Construction News

Father – son time

Tuck Wheeler and his son Jace hooked a keeper while spending a weekend on the river. Wheeler is an employee at D E Harvey Builders. -te

Houston Construction News • August 2017

Fun and fishing in remembrance

Page 9

pawGlass hosted their annual fishing tournament June 23rd and 24th in memory of their friend and teammate CJ Strnadel IV. Strnadel loved hunting and fishing and this event helps keep his spirit alive and brings together friends, family, and colleagues for fun, fishing, and laughs. Moving to a new location in Rockport, TX resulted in the addition of

nearly 10 new teams, bringing the total amount of teams to 60, which is the largest amount of participants in the tournament’s five-year history. Taking top honors were 1st Place Overall: Big City Access, 2nd Place Overall: SpawGlass/Correct Electric, and 3rd Place Overall: AC Tech. Team Marek hauled in the largest redfish at 8.56lbs. and 27.4in. - te

Submitted to Construction News

Basically delicious Strnadel family members pictured with SpawGlass and Bo’s Place representatives.

1st Place Winner Big City Access with the largest stringer at 22.47lbs.

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

Half or Full Day Fishing Trips All Bait, Tackle & Equipment Furnished Your catch Filleted and Bagged for You Furnish your TPWD Fishing License & Refreshments, and WE DO THE REST!

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

Travis and Joe Bennett of Basic Builders Inc., along with Simone Bennett, show of their plaques from a BBQ competition they competed in. -te

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Houston Construction News • August 2017

2017 IEC Texas Gulf Coast Graduation Ceremony

he Gulf Coast chapter of Independent Electrical Contractors (IEC) celebrated 116 graduates from the Apprentice program at the University of Houston. 11 students received special recognition: Academic Excellence 1st Year Apprentice: Marcos Juarez, Christopher O’Donnel, and Gabriel McLemore Academic Excellence 2nd Year Apprentice: Argelio M. Guerra

Academic Excellence 3rd Year Apprentice: Davide Cheathem President’s Honor Roll: Jon-Michael Vasek Madeline Borthick Award: Jon-Michael Vasek Apprentices of the Year: Mark Whiteford – 1st Place Jon-Michael Vasek – 2nd Place Gerald Linnear II – 3rd Place Christopher Roberts – 4th Place - te Jon-Michael Vasek was awarded with the President’s Honor Roll and Madeline Borthick Award

Mark Whiteford was awarded Apprentice of the Year

The 2017 graduating class for IEC Texas Gulf Coast

www.constructionnews.net publishing the industry’s news

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San Antonio Austin Dallas/Fort Worth Houston

Houston Construction News • August 2017

Page 11

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

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

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-

Servicing ahead Grant Dillon, District Manager We Rent It

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

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 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.

Buda, TX

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 hir-

ing 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. 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 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. 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.

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 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 are keys to being successful in the industry?

Helping to find a cure

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

Carol Pitman, from Pitman Construction, and Kim Gilliam, wife of Brian Gilliam from Tejas Materials, took part in the Walk to Cure Arthritis 5K in May.

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Houston Construction News • August 2017

NEXT TH MON

GREEN BUILDING

If you would like to represent your company in an upcoming FOCUS, contact your Houston Editor for an Interview Tanya Erickson (832) 595-0091 HoustonEditor@ConstructionNews.net

Clients changing to attract talent

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.

Lewisville, TX

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

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

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?

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

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

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

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

Houston Construction News • August 2017

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continued from Page 1 — No room for failure

continued from Page 1 — Blowing bubbles your capital and cash flow. One thing that helps out right now is that there are two of us.” F3 does around 70 percent residential and 30 percent commercial work. The foam is an alternative to the conventional fiberglass insulation.

“Spray foam allows an airtight seal,” Stroade said. “Bad insulation allows air to come in and out of the structure. When you spray it with foam, you’re locking all that air out and can control the inside climate.” –cs/rd

Round-Up MAREK announced the promotion of Saied Alavi, George Kissamis, Phil Nevuld, and Jorge Rodriguez to Managing Directors of its Houston commercial construction business.

Submissions

who works here. So we include them on everything – decisions that we make, we always ask for their opinion.” These two men who run Advanced Glass Solutions truly care about their employees and they believe if the employees are unhappy, the company won’t succeed. “I’ve always seen it as these guys have to be taken care of because without them, this is not going to happen,” Valencia explains. “These are the guys that are producing the work for our company and putting our name out there. We want them to do that with a smile because they know at the end of the day, they’re going to have a guaranteed job, extra money or bonuses, and they know we are only a phone call away for help.” Harclerode and Valencia’s passion for their company can be seen on their faces and in their attitude. “We love our job, we love our company, we love the guys who work for us, and the companies we work for.” - te

Round-Up

known for years. They installed the glass for Bayway Dodge in Pasadena and Valencia hopes they can continue to get more work for car dealerships. Harclerode and Valencia say their success comes from the employees they have. “We take care of our guys. Employees are what make the company.” With 80 years of experience from just two of the 12 guys working in the field, Harclerode and Valencia have set themselves up for success. “Their work is substantial; there are no flaws.” Along with the 12 employees in the field, the company has three fabricators who work out of the warehouse, and they recently hired on a truck driver. “We took responsibility for everyone who works for us and the responsibility of putting food on their table, which we cannot fail at because if we fail, they fail,” says Valencia. “We all left something secure to jump on board and make something for ourselves. When I say ‘ourselves’ I mean the entire company, everyone

This is a monthly section for brief company announcements of new or recently promoted personnel, free of charge, as space allows. –––––––––––––––––––––––––––––––––––––––––––– Email (w/digital photo, if available) by the 15th of any month, for the next month’s issue (published 1st of each month). Email info to appropriate city issue, with “Round-Up” in the subject line: –––––––––––––––––––––––––––––––––––––––––––––––––––––––– San Antonio: saeditor@constructionnews.net Austin: austineditor@constructionnews.net Dallas/Fort Worth: dfweditor@constructionnews.net Houston: houstoneditor@constructionnews.net

JOB SIGHTS

continued from Page 1 — Far from basic

The conference room is spacious and is equipped with technology for all functions.

other types of media calling systems. One feature that is noticed throughout the entire space is the exposed ventilation system and pipes. Rather than looking harsh and unfinished, mixed metals have been used to emphasize the modern look and feel. The ventilation system is polished shiny metal, whereas the pipes are flat black. Other aspects that stand out are the computers and screens quite literally everywhere. The entrance has four separate small tables with wheels. Each table has a

different colored marking that looks like the “greater than” symbol and has a computer available for use. If you were to turn around, you would notice three more screens set into a white glass-like wall. When Bennett explains that “Basic provides full turn-key, high-end construction and remodels and specializes in anything and everything in an interior space,” his company stands by that. The subcontractors and Basic have provided Accenture space that is descriptive of their company. – te

Ernest Jr., George, and Thomas, from A to Z Custom Millwork, are having fun while on the job site for the new DaVita Dialysis center in Katy. Gary Hahn, Weir Enterprises, is the superintendent and Steve Aldridge, also from Weir Enterprises, is the GC.- te

Ben Manges with Practical Concrete Design finishes up the epoxy in a room for the new DaVita Dialysis center in Katy. Gary Hahn, superintendent, and Steve Aldridge, GC, work for Weir Enterprises. - te

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Houston Construction News â&#x20AC;¢ August 2017

Houston Construction News • August 2017

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Construction News ON LOCATION

Naturally beautiful

Keystone Tile offers a wide range of indoor and outdoor tiles and decorative plates. They have been in business for 15 years and continue to expand their two-story showroom. L-R: Ashley Morin, owner Matt Bastas, and Yvonne Perez. - te

Construction News ON LOCATION

Equipping the best

www.constructionnews.net publishing the industry’s news

Jeff Robinson and Wade Briggs both work for H&E Equipment Services, which offers amenities for almost every type of job. -te

Association Calendar

Content submitted by Associations to Construction News ABC

IEC

Associated Builders & Contractors

Independent Electrical Contractors

Aug. 3: Casino Night at Dave & Busters Marq-E Center; $75 for members, $100 non-members Aug. 28: Fall Clay Shoot, Greater Houston Gun Club, 9am – 3pm. For more info, call 713-523-6222

AGC Associated General Contractors

Aug. 3: Membership Mixer at Crisp, 4:30 pm, free for general contractors. For more info, email Membership@ AGCHouston.org Aug. 11: Construction Leadership Council Golf Tournament at Hermann Park Golf Course. For more info, call 713-8433700

FPA Foundation Performance Assoc.

Aug. 9: Texas Board of Engineers, Ethics program presentation. For more info, call 713-621-5599 Aug. 9: AH Beck, Thermal Integrity Profiling of Drilled Shafts and Augered Cast Pipes. For more info, call 713-621-5599.

Aug. 4: Casino Night, IEC Auditorium. For more info, call 713-869-1976

NARI Nat’l Assn. of the Remodeling Industry

Aug. 15: Houston Luncheon, Cavatore’s Italian Restaurant, 11:30am – 1:00pm. For more info, 713-621-6274

Texas Style

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

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Houston Construction News â&#x20AC;¢ August 2017