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CONSTRUCTION
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Volume 19
Number 8
AUGUST 2017
A milestone trifecta
The great outdoors
The Traugott Inc. team is celebrating 35 years since Michael Traugott Sr. started the company.
Learning about nature.
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his is a big year for Michael Traugott Sr. as all three of his businesses are celebrating anniversaries. South Texas Drywall & Construction is marking its 20th anniversary. The sister company he owns in Austin with Carl Russell, which Russell runs, called Russell & Traugott is celebrating its 10th anniversary. And the company that started it all, Traugott Inc., is celebrating its 35th anniversary. “It’s all hard work and consistency,” says Traugott. “Doing a good job consistently is key to success.” He adds that the longevity of his employees is a very big part of that success and a source of pride in the company. He notes that every Christmas, they hand out mile markers, a plaque and a check, to employees who have reached
five-year increments with the company, and they have some 30-year markers coming soon. Tammy Thompson, office manager, started with the company when she was 17 and she is one of the employees who has already passed that 30-year mark. Looking back on his history in the industry, Traugott laments that the industry has changed to the point where he feels schedules are too short with everyone working on top of each other, and he attributes this to the owners setting a schedule that is just not realistic to do the job right. When Traugott started his own business in 1979, he had a partner, but when he separated from that partner in 1982, he founded Traugott Inc. He worked continued on Page 17
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elebrating its 17th year, the Take a Kid Kampin’ and Fishin’ trip Sep. 23-25 gave 130 local children the chance to do things that they would not be able to do otherwise - things so many of us take for granted, such as camping, fishing, hiking and canoeing. The trip is for kids of SA Youth, a nonprofit dedicated to helping at-risk, low-income children in San Antonio. So, this year’s weekend at the H-E-B Foundation Singing Hills Camp was made possible by winning bidders from this year’s and last year’s SA Youth Charity Fun Shoots, E-Z Bel Construction and NOLHAN SERVICES. With the same team working in the kitchen and behind the scenes Cindy
Niznik, Niznik Concrete, along with Pattie Gamez and Kim Olson prepared the meals for the 160 at camp, including staff members and volunteers, accounting for $2,800 in food expenses. This year, the ladies had lots of help in the kitchen and with dishes. On Friday night they were treated to a spaghetti dinner their first night at the camp. On Saturday, they enjoyed daylong rotations in the big events, including fishing and swimming, since the camp sits along the Frio River. Niznik notes that the kids were kept very active this year with lots of fun with outdoor and creative recreation. In addition to physical activities, the kids made their own prayer boxes as part of an arts and crafts exercise. continued on Page 17
A place to play and picnic
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n building a multi-faceted recreational space at Pearsall Park, MJ Boyle General Contractor provided the City of San Antonio with an exciting, safe, and lush place where children can play and people of all ages can enjoy the outdoors. The $5 million project took about a year to complete and included turning bare land into a park with a large playground, a splash pad, an exercise area complete with equipment and zip line, a skate park, two basketball courts, a restroom building, a jogging trail, plenty of sidewalks, and two parking lots. The job consisted of a lot of site work and concrete work. With a whole system of pumps and filters, the splash pad is concrete with padding and several cool water features that squirt water out in different ways that make it fun for the kids to run around and splash in the water. The skate park includes ramps and railing for skateboards to do jumps and other moves. There’s a picnic
The work MJ Boyle General Contractors did at Pearsall Park included a large and unique playground.
pavilion that can be used for events as well as a concession stand. “The biggest challenge on the job was the weather,” explains Jody Mokry, project manager. “During that timeframe, we were experiencing a lot of rain, especially when we were trying to finish and we were doing the landscape part of it. It just kept raining and raining. It was so wet that we had to wait and let it dry out.” He notes that the City of San Antonio was understanding of the issues the project faced due to unforeseen weather conditions and the exclusively outdoor nature of the job. The construction team was granted six weeks in extensions, which allowed them to complete the job. The rain contributed to a different challenge the team faced on the job as Mokry recalls, “We were working on soil that was a very expansive clay-type soil, and so there was a lot of movement trying to work around that. And when it would get continued on Page 17
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San Antonio Construction News • August 2017
Double the do!
L-R: The wife of Infrasource’s Dan Herber joins him as he celebrates with Miller Brothers’ Sara Mejia, Chad Brooks and Felix Damayo
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ow that they’re together, it promises to be twice the fun! Madden Materials and Jarco Transport, now conjoined and owned by Joe and Sofia Regalado, celebrated its grand opening Jul. 14. Guests from surrounding areas were
treated to a tour of the new Von Ormy facility and wash plant, as well as food, music, and giveaways. The event was the perfect way to celebrate major milestones achieved separately by both companies as well as the ones they will soon accomplish together. –mh/mjm
MasTec’s Orlando Castillo, Dude Benke, Sabrina May and Dinora Perez
(Top, l-r): Madden Materials’, Paul Alden, Robert Moore, Jeff Alegria, owner Joe Regalado and Daniel Guzman; (bottom, l-r) Nicole Petersen, co-owner Sofia Regalado and Denisse Molina
Bikers stand against abuse
HJD Capital Electric’s Raymond Martinez, left, has joined bikers who work together through BACA to help abused children feel safe.
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s a biker, Raymond Martinez, project manager/estimator for Low Voltage Systems at HJD Capital Electric, enjoys heading out on his Harley and going for a ride. And as a member of Bikers Against Child Abuse (BACA), a 501(c) (3) international biker organization, he can stand with abused children to help empower them so they do not have to live in fear. Dedicated to “breaking the chains of abuse,” BACA explains on its website that its mission is to lend physical and emotional support by affiliation and through its members’ physical presence. With four levels of intervention, BACA has several ways of helping to restore a sense of safety and security in an abused child’s life. Since Martinez and his wife had always been involved in school and church activities for their kids, when all four of their children had left home, he was searching for a way to volunteer his time that would benefit children. He saw an article about BACA and did some research that included talking to his brother’s neighbor, who rides for the San Antonio Chapter. Since contacting the Hill Country Chapter and attending a meeting three years ago, Martinez has been committed to the organization and its cause. After two years with the chapter, he was patched, earning a back patch that means he is cleared to be a “Primary” for a child. To earn this, he had to undergo an
Raymond Martinez has been a member of BACA’s Hill Country Chapter, a nonprofit organization that helps abused children, for three years now.
FBI-level background check, which includes being checked against the state registry and sex offender registry, and ride with the chapter for at least one year. All patched members have been through thorough background checks to ensure they are safe to be around children. BACA gets referrals from local and state officials already in place to protect children who have entered the system due to suffering some form of abuse. The local chapters may be contacted by Child Protective Services or a district attorney’s office, and then, a BACA member is assigned as a child liaison and makes contact with the parent or guardian. After an interview, the parent or guardian and the child decide if they want BACA’s involvement or not. “The whole purpose is to empower the child so they can have the courage or the strength to stand up in court and tell their story,” explains Martinez. “Everything that we do is geared toward giving the kid the courage and selfconfidence back that’s removed from them by the abuser. A national average of 95 percent of the cases ended in a plea or conviction when BACA’s involved.” Members from the 24 chapters across Texas show up for court appearances to let the children know that their BACA brothers and sisters are there for them. They sit in the gallery so the children have friendly faces from which they can draw strength and courage to testify against their abuser, who may be the only face they recognize in the courtroom. A Level 1 is called an adoption, where as many members as possible ride to the child’s house. This helps to deter further abuse and harassment and shows children that they have a biker family that is there for them. “After I went to the first adoption, and I saw the dramatic change in this kid’s life when she saw almost 50 bikes riding up and all these gnarly looking bikers there for her,” he recalls. “When I saw that transition on her face from being timid and fearful to open and smiling and hugging everybody, that was food for the soul and I just knew I had to be a part of it.” At 62 years old, Martinez, a native San Antonian who served six years in the Army, is hoping to have his first Primary assignment with a child soon. –mh
San Antonio Construction News • August 2017
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Integration and evolution
L-R: Lucas Leavitt, Leo Quintanilla, and Brooks Holzhausen are leading several combined construction companies under a single entity, QMC Services.
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hough some of the companies that integrated to form QMC Services specialized in work related to the oil and gas industry, its leadership and workers have always had more experience in construction, especially civil work. Lucas Leavitt, president of QMC, started an earthwork and paving company after graduating from the University of Nevada in 2000 with a degree in geological engineering. His company soon merged with a large company, which was heavy into utilities. In 2009, they started an oil field division in Western Colorado, and a year later, their customers were calling for their services in the Eagle Ford Shale. When Leavitt came down to San Antonio, his company struck a joint venture with Leo Quintanilla, who formed Q-Haul in 1997. Q-Haul started as an oilfield construction and earthwork contractor and in 2012, broadened its scope. “Essentially, [Quintanilla’s] idea was to have a handful of oilfield service com-
panies that could vertically integrate with one another,” explains Brooks Holzhausen, business development manager for QMC. With Quintanilla operating dirt work, fluid transportation, vacuum truck, and rental companies, Holzhausen estimates that approximately 10 companies merged, and today, all operate under QMC Services, which is a dba of Q-Haul, and Matt Brace is QMC’s CEO. The company is a qualified contractor with TxDOT and holds Texas plumbing and RMEU licenses. QMC did the Ferrari dealership on I-10 and work at the University of the Incarnate Word, as well as some school work. Though their work started in the oil field, 70 to 80 percent of QMC’s work is commercial and municipal construction now with oil and gas accounting for about 20 to 30 percent. QMC Services work includes civil construction, aggregates, and oil field construction. –mh
Construction News ON LOCATION
A little bling in your tile
L-R: Amy Ozuna, design coordinator, and designers Lori Caldwell and Jamie Benavides have a “Bling Gallery” in the Builder Design Center at CRT Flooring Concepts. The tiles in that section have decorative accents. –mh
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San Antonio Construction News • August 2017
A sporting chance for fun
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he Independent Electrical Contractors (IEC) San Antonio Chapter held its ninth annual Sporting Clay Fun Shoot Jun. 23 at the San Antonio Gun Club. –mh
Industry FOLKS Jonathan Bradley Preconstruction Manager SpawGlass
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Winners
1st Place Team
Men – Flight 1 1st: Jay Gable (49) 2nd: Dustin Crawford (47) 3rd: Bill Stannard (46) Men – Flight 2 1st: Cody Foust (32) 2nd: Brad Hartman (32) 3rd: Jeff Ruhnke (32) Men – Flight 3 1st: Kyle Reding (24)
Pistol Winner
2nd: Austin Fryar (24) 3rd: Scott Smith (24) Women – Flight 1 1st: Tricia Kocurek (48) 2nd: Julie Howard (16) 3rd: Elizabeth Knight (13) Team 1st: Ancira Winton Chevrolet (139) –Larry Jones, Jay Gable, Tricia Kocurek 2nd: Prime Controls (135) –
Dealers Electrical Supply
Dustin Crawford, Gary Anglin, Brennan Lame 3rd: Suberg Electric (107) – Tracy Suberg, Mike Radino, Austin Fryar Shotgun Winner: Paula Jozwich Pistol Winner: Corey Childers Ice Chest Winner: George Green
Shotgun Winner
hough Jonathan Bradley has been working for SpawGlass for nearly a decade, he is new to the San Antonio Division. He recently transferred from the general contractor’s Houston Division to take on the role of preconstruction manager. As part of his new position, Bradley will help develop and maintain relationships within the industry, including those with owners, architects, engineers, and subcontractors. Noting that he is really passionate about building relationships and trust, he describes the responsibilities of his new role as a hybrid of business development, estimating, and marketing. After growing up in Orange, TX and graduating from West Orange Stark High School, Bradley attended Texas A&M University in College Station where he studied agricultural development. When he met an Aggie who had a construction opportunity available, Bradley initially set out on the path to become a superintendent. As he was working his way up the ranks of the superintendent ladder, he came to a point where he transitioned into a project management role. When Bradley was offered the opportunity to move to the San Antonio office as preconstruction manager, he was working on a 27-month-long project, an 8-story, 318,000-sf senior living facility in Houston called the Village of River Oaks. The contractual completion date
was Mar. 30, and Bradley fulfilled all of his obligations on that project before relocating. With a wife and three children to consider, Bradley notes that Jason Smith, president of the San Antonio Division, really worked with him to allow his oldest to finish the school year in Houston. His 7-year-old daughter, Savannah, completed first grade on Jun. 1. Bradley and his family moved the week of Jun. 5, and his first day in the San Antonio office was Jun. 12. Bradley and his wife, Angela, also have a 5-year-old daughter, Madison, and a 2-year-old son, Mack. Both of his daughters have been very involved in dance activities and love swimming. Bradley enjoys running, sports, hunting, and fishing. The Bradley family was very involved in their church back in Houston and intend to get involved at their new church here, too. When one of the buildings at his old church caught fire and needed to be rebuilt, Bradley served on the building committee. Originally from Oklahoma, Angela worked in the oil and gas industry for a while and is currently business development manager for SherwinWilliams. He and Angela have been married since 2008. –mh
Christmas Around the World
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et ready for the biggest Construct A Kid’s Christmas Gala ever in 2017. This year the theme will be “Christmas Around the World” which will add even more variety to the event. Last year the 16th Annual Gala at Freeman Expo Hall was the largest in the fundraiser’s history. With more than 1,200 tickets sold, silent and live auctions, and the biggestto-date Texas–sized Grand Gala Raffle, the night was historic. Construct A Kid’s Christmas 501 (c) 3 non-profit was able to present a check for $60,000 to help Bexar County foster children have a merrier Christmas this year. Also the event added a $40,000.00 check to Child Advocates San Antonio (CASA) who will help serve those same children throughout the entire year. The San Antonio construction community proved again to have the biggest hearts in Texas with their support of this event. This year’s 17th annual Construct A Kid’s Christmas Gala will be held Dec. 7 from 5:30-11pm at the Freeman Coliseum Expo Hall in Exhibit Hall C. “Our Gala last year broke records we never imagined,” said Buddy Doebbler, pub-
lisher of Construction News and president of Construct A Kid’s Christmas 501 (c) 3. “This year we will strive to make it even better in all ways for those who attend. Last year’s Grand Gala Raffle was a huge hit with all the prizes the one winner took home. There were so many I wonder if Elizabeth Connally, Connally Law PLLC has had a chance to use them all yet. “We will be making the official announcement of the Grand Gala Raffle items in the September issue of Construction News. I don’t think anyone will be disappointed.” So please mark you calendar for Dec. 7 so you and your company can become a part of this great event. Guests are encouraged to bring an unwrapped toy for a Bexar County foster child who might not otherwise have a gift under the Christmas tree this year. These toys will be added to those collected at the annual Construct A Kid’sChristmas Toy Drive held the next day, Dec. 8 from 10am-2pm at the Construction News office,
Live auction brings out the crowd.
Silent auction goodies
4047 Naco-Perrin Blvd. The donations of toys, gifts and gift cards collected at the gala and toy drive go to Friends of Bexar County so Bexar County Protective Services can distribute them to Bexar County foster children. As of last year the organization has donated $690,381 in cash and gift certificates and an awe-inspiring 23,311 toys and gifts. Our September paper will have complete information about the event. See y’all there! Associations participating in the 2017 gala include the Associated Builders and Contractors (ABC), Associated General Contractors (AGC), American Subcontractors Association (ASA), Construction Financial Management Association (CFMA), Construction News Ltd., Hispanic Contractors Association (HCA), Independent Electrical Contractors (IEC), Mechanical and Sheet Metal Contractors Association (MCA-SMACNA), National Association of Women in Construction (NAWIC), Plumbing-HeatingCooling Contractors (PHCC), Surety Association of South Texas (SAST) and Texas Air Conditioning Contractors of America (TACCA). –bd
Music for your listening and dancing
Casino games always a crowd pleaser.
What will the big prizes be this year?
San Antonio Construction News • August 2017
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Putting it all on the line
Newly minted electrical professionals
1st Place – Pro Division
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he American Subcontractors Association (ASA) San Antonio Chapter held its 16th Annual Fishing Tournament Jun. 30Jul. 1 in Rockport. –mh Pro Division 1st Stringer: Broadway Bait Casters (17.21 lbs.) 2nd Stringer: United Rentals (13.68 lbs.) 3rd Stringer: Los Vatos Locos (13.20 lbs.) Heavy Trout: Robles/IBTX (5.63 lbs.) Heavy Redfish: Broadway Bait Casters (7.29 lbs.) Heavy Flounder: Los Vatos Locos(3.84 lbs.)
Amateur Division 1st Stringer: Hell on Reels (14.96 lbs.) 2nd Stringer: Urban Legend (13.43 lbs.) 3rd Stringer: Wright Meow (12.68 lbs.) Heavy Trout: Ridout Team 2 (5.53 lbs.) Heavy Redfish: Wright Meow (7.92 lbs.) Heavy Flounder: Hell on Reels (2.32 lbs.) General Contractor Division: StructureTone/“Lucky 7’s” Hard Luck Story: The Aquaholics
1st Place – Amateur Division
Corrections In last month’s story,“Small companies, big stories,” a caption incorrectly identified GL Contracting’s joint venture partner as DHR Construction. The company’s name is DRH Construction. Construction News regrets the error. –mh In last month’s story on the San Antonio Masonry Contractors Association (SAMCA) Golden Trowel Awards, the Education Facility K-12 winners were incorrectly identified. The winning project was actually Southwest ISD Legacy High School, Masonry Contractor: Ericstad, Foreman: David Zuniga, Architect: Pfluger Architects, General Contractor: Joeris General Contractors, Suppliers: Acme Brick/ Featherlite, Christopher Stuart Cast Stone, Headwaters Construction Materials, I-10 Building Materials/Stone Source. Construction News regrets the error. –mh
CONSTRUCTION NEWS
Carol Wiatrek, Managing Editor — SAEditor@ConstructionNews.net — 210-308-5800 Publisher . . . . . . . . . . . . . . . . . Buddy Doebbler Editorial/Production . . . . . . Reesa Doebbler Managing Editor . . . . . . . . . . . . . Carol Wiatrek Production Manager . . . . Helen Greenwood Administration . . . . . . . . . . . . . . . . Terri Adams Account Manager . . . . . . . . . . . . .Dana Calonge Construction News Ltd. Home Office P.O. Box 791290 • San Antonio, Tx 78279 210-308-5800 Fax 210-308-5960 www.ConstructionNews.net If you are a construction-related company in Atascosa, Bexar, Bandera, Comal, Guadalupe, Kendall, Medina or Wilson counties and are not receiving a free copy of the San Antonio Construction News, please call for a Requester Form, or visit our website.
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he South Texas Electrical Joint Apprenticeship and Training Committee (JATC) held its annual graduation banquet Jun. 28. The electrical graduates were Joshua Alvarado, Russell Arreola, Arturo Cuellar, John Diaz, Albert Escalante, Robert Flint, Carlos Garcia III, Timothy Gonzales, David Gonzalez, Dustin Hoyuela, Charice Latson, Randy Longtin, Gerardo Macias, Matthew Martinez, Demario Mitchell, Vicente Ortiz, Michael Patlan, Ana Robledo,
Brijido Rodriquez, Carlos Salazar, Daniel Salazar, Maximillian Saldibar, Ronnie Scaff, Kenneth Strait II, Matthew Tanguma, Andrew Tenorio, Anthony Torres, Keith Vanlandingham, Brandon Winston, and Nicholas Yuker. The telecommunications graduates were David Day, Guillermo Figueroa Jr., Xavier Lujano, and Emilio Trejo. Graduates of the Year were recognized in each category for outstanding performance in their graduating class. –mh
Nicholas Yuker, Inside Wireman Apprentice of the Year
Emilio Trejo, Telecommunication Installer Technician of the Year
Hard Luck Winner
1st Place – General Contractor Division
San Antonio
The South Texas JATC 2017 graduating class
The San Antonio Construction News (ISSN 1547-7630) is published monthly by Construction News LTD., dba San Antonio Construction News, and distributed by mail to construction-related companies of record in Bexar and 7 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 San Antonio 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.
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San Antonio Construction News • August 2017
Brantley Hightower Founding Partner HiWorks
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n the office, Brantley Hightower is celebrating the fifth anniversary of his firm, HiWorks, and recently got his drone license as a bonus. At 40, he still considers himself to be a student of architecture as well as a student of the world. Noting that he feels incredibly lucky, he has done projects in the Hill Country, the Dallas-Fort Worth Metroplex, Houston and as far west as Fort Stockton. At home, he and his wife, who is also an architect, have 7-year-old and 4-year-old daughters who keep life interesting. He observes that the biggest challenge of adulthood is time, which has forced him to become super efficient with that resource as he reinvents himself and evolves throughout his life. Where did you grow up? I grew up outside of Fort Worth in Arlington, TX. When my parents grew up there, it was a small town. When I grew up there, it was a suburb. So, when I went to school at UT in Austin, it was sort of my first urban experience. Then, I wanted to live in a real city, and Chicago seemed like a good place, and it certainly was. I had a great couple of years there. I got to live in a big city, work for a big firm, but I always knew I wanted to end up back in Texas. So, I came back to San Antonio. I got a job at Lake|Flato, which was primarily why I came to San Antonio. I worked there for a couple of years, and then went to grad school at Princeton – got a touch of the Northeast, got to reuse all the sweaters that I had from my time in Chicago. The main reason for going to grad school was I wanted to teach. That was about a year-and-a-half program, and then I came back to San Antonio, started working again at Lake|Flato and taught at a number of schools. The life of the adjunct is not a particularly glorious one, but I enjoyed it. So, I taught at UT Austin, UT Arlington, Texas Tech, and Trinity. I’m not teaching currently. I hope to again at some point. But now that I have kids – if I’m going to spend time with kids, I might as well spend it with my own as opposed to somebody else’s. What did you study at UT and Princeton? At UT, it was a dual degree program – a bachelor of architecture and a bachelor of
arts. In high school, they tell you to do everything you possibly can, and so there was this dual degree program, and I said, “I have to do that.” At the time, I felt that the liberal arts stuff I was doing was taking away from the architecture, but I started it and I wanted to finish it. In retrospect, I’m really glad I did it, but for completely different reasons. Because I was able to take philosophy classes and film classes, read literature, and other things that I would have stopped doing in high school had it not been for this other program. I think it enriched my life in a certain way, and I think it has led to me being a better designer. One of our jobs as a designer is to solve a problem, but to solve that by bringing in lots of other things, which can come from art, history, landscaping – all the things that you don’t necessarily get when you’re in a very labor-intensive professional degree like architecture. What did you like about teaching? Just to step away from practice. It’s so cool to be able to design and have stuff to be built, but there’s a lot involved. There’s building codes and accessibility standards. All things that are important that we need to do, but the sort of big idea of a building – often, you have to carve out space for it and hold it to be very precious. In school, that’s all you’re worrying about. And so, to take a step back from the day-to-day grind and just talk about big ideas, and not having to worry about budget can be kind of fun. Playing in the sand box of ideas is what I’ve enjoyed about teaching. How did you wind up volunteering at UT Children’s Hospital as Skippy the Kangaroo? I had a friend who was pre-med, and she volunteered at what was then Brackenridge Children’s Hospital, and she mentioned that they have this purple kangaroo who went around and visited the kids on Sundays. I thought, “This is my chance to fulfill my lifelong dream of being a Muppet.” She put me in touch with some volunteer coordinators, and on Sunday mornings, they would bring in kids who were coming in for ear tubes or normaltype surgery, and the kids would come and see where they would go, the operating room, play with the masks that they would have on when they would be waking up in the post-op room. So, they would understand the physical environment that they would be in, and then the big prize at the end was they would get to meet Skippy the Kangaroo, which for a while on many Sundays was me. After that, we would go into the various rooms and visit some of the families that were in there for more serious things – kids going through chemotherapy. Even before I had kids, that was hard. This was back in the Barney days, so you’d walk into a room, and kids would say, “It’s Barney.” You couldn’t talk, but you could demonstrate that you had a pouch. And they would trot Skippy out for fundraisers as well. There was a 10K of some
Brantley Hightower, founding partner of HiWorks, started his own architectural firm in 2012, balancing family life with interests and hobbies related to the field.
sort that went to the Children’s Hospital, and the guy who blew the horn to start it was the governor, who at the time was W. And so, somewhere, there’s a photo of future President Bush and me as Skippy the Kangaroo. Tell me about your wife, Clara. We were both undergraduates who started college in 1995. She was originally from California, and her family moved to New Braunfels. At UT, the School of Architecture is relatively small, so we met as friends. We were in the studio for three years and then started dating. We took our time. We dated for about eight-and-a-half years. We met in Austin. I moved to Chicago. She moved to Dallas. Then, she moved to Chicago. Then, she moved to San Antonio. Then, I moved to San Antonio. Then, I moved to New Jersey, and I came back to San Antonio. We had a lot of our own lives to figure out. By the time we got married in 2006, we knew where each other was coming from. Right now, Clara works for THW here in town. Tell me about your daughters. Sammy is our 7-year-old. She just finished first grade, and she is incredibly enthusiastic about everything, which is to say she’s very loud. She discovered rollercoasters a couple of years ago. She just finished her Daisy Scouting career. I was a scoutmaster with her. She loves hiking. Something I always wanted to do at UT was go out and visit all the state parks around Austin. I never had the time, and once Sammy was born, I would go out early on Saturday or Sunday morning, put her in a little backpack, and we went to every one of the state parks around here. Darcy is 4, and she started out more laid back, and she’s developed into our honey badger in that she’s always just smiling and she doesn’t really care what you say or what your opinions are. It’s interesting watching their personalities develop in ways that are completely independent to anything we might do as parents. I think that makes me feel better as a parent to know that they will become whatever they will become regardless of anything I might do to mess them up. How did your book, The Courthouses of Central Texas, come about? When I taught at UT Austin, the studio project for the students was to assume the county courthouse in Lockhart burned to the ground. The idea was, what do you do when you have this historic context? Do you rebuild something new? Do you move it? Do you try to build something to that historic style? Turns out it’s a really difficult project, and while the design solutions were interesting, the most interesting thing they produced were a series of analyses of existing historical courthouses. It was a poster where they looked at five or six different ones – it had elevation, the plan, how it’s set in the courthouse square. When we pinned that up for review, people would come by and look at the projects, but they always went and looked at that. And I would go look at that, because it was really fascinating. One of the things about buildings that you don’t really think about is that they’re really kind of hard to compare to each other, because they exist in physically different locations. You can’t
pick one up and look at the other next to it. So, while there were lots of books about courthouses that had pretty pictures or talked about their history, there wasn’t really one with an architectural analysis. It was something I was really interested in as well – how did these really great buildings come to be built in these really far away small towns throughout Texas. That was the genesis of the book – these questions that I wanted to answer. I thought maybe this could be a book. So, I shopped it around to a couple of different publishers, and I tried UT, and they said, “Yeah, let’s work on this together.” The book came out in 2015, and it’s been a really great experience. It was never intended to be a moneymaking venture, per se. I see it as outreach more than anything else – something I’m excited about, something a lot of other people are excited about, and it’s fun to be able to share that passion. So, about once a month, I try to do an event of some sort. I gave a talk at the Bandera County Courthouse in May. And I did a presentation at the San Antonio Masonry Contractors Association (SAMCA) Golden Trowel Awards Banquet in June. I talk, sell a few books. My cut from those books doesn’t typically cover the gas to get out to the event, but it’s about something else. Tell me about your podcast. Once I stopped teaching, the podcast was a way to teach in a slightly different format. It was a medium that I knew nothing about, but I had a lot of fun learning how to tell a story that way. I did two years of an episode per month, but this year, I’m taking more of a whenever-I-feel-like-itapproach. It’s called “The Works” and it’s about the built environment and architecture. It tells stories about how things come to be built in the world. It’s an opportunity for me to nerd-out on a subject I’m interested in. I wanted to learn more about the fake Alamo they built in Brackettville for the John Wayne movie. I went out there, talked to the people, the current county judge whose father was the guy who was sort of responsible for getting that built. We always talk about living in a structure with the assumption that it’s on Earth, but there are other places you could live. So, I interviewed an astronaut, Charlie Duke, who is one of the six men to have landed on the moon, talked about what it’s like to live on the moon. And right now I’m working on an episode on planetaria, which is the plural form of planetarium, and how these remarkable spaces came to be built – shockingly a lot of it was paid for as part of a federal grant during the ‘60s in the space race. I’ve seen your FAQ. Tell me about the hilarious little elements you’ve built into your website. Websites tend to be pretty formal and therefore dull. There are a few Easter eggs in the website – if you click the link for Princeton, it goes to a clown college. In the renderings that I do, usually Waldo is standing in the corner somewhere or there is some historical figure who’s relevant to the project who finds his way in there. I’m trying to communicate that I am a person, and I have a personality, and if you’re going to go to the trouble of reading all of the website, I want you to have a little bit of something waiting for you at the end. –mh
San Antonio Construction News • August 2017
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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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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.
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San Antonio Construction News • August 2017
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
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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).
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Confined spaces in residential construction Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX
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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
San Antonio Construction News • August 2017
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A family of air
Construction News ON LOCATION
A new home to call their own
Celebrating its 90th anniversary this year, Guido Construction broke ground Jul. 5 on its new headquarters, which will increase the general contractor’s space at its Vidor Avenue location from 5,500sf to 25,000sf. The project will include the addition of two new buildings and complete renovation of the existing one to form a new Guido campus. –mh
L-R: Patrick and Keith Wilks help run the business that Patrick’s father started.
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hree generations of the Wilks family have led to what Wilks Air Conditioning & Heating has become today. With founder David Wilks as owner, his son, Patrick Wilks, as president, and his nephew, Keith Wilks, as vice president, the family business has grown strong. To make extra money, Hugo Wilks, David’s father, would buy trailer loads of old washers, dryers and other appliances from Sears and then cannibalize everything to fix what they could with parts from other machines. They would repair as many appliances as they could and sell the working washer machines, dryers, microwaves, refrigerators, and used appliances to put food on the table and make ends meet. “So, David really learned how to do a lot of mechanical things and how to repair small appliances growing up from a very young age,” explains Patrick. “They did that on a fairly regular basis and then that led to people that bought from Hugo and kind of a side business for my grandfather. That’s how my dad got started in the repair parts of it. “Through high school, he would take night classes at St. Philip’s to get his air conditioning certification. And by time he graduated high school, he also had a certificate for air conditioning and heating in order to start his business.” David founded Wilks Appliance in May of 1974, and though it has changed names, it’s still David’s company that does repair for air conditioning and heating with a few more services, including home performance work and building envelope testing. When Patrick was a teenager, he shadowed his dad on the job over the summer, learning most of what he knows through on-the-job training and watching his father do the work. Keith worked in the same field and came into the business in 2009. The family works well together, and outside of work, they spend a lot of quality time together. Patrick and his wife, Alicia, have three children; a 4-year-old daughter, Raeleigh; a soon-to-be 3-year-old daughter, McKinley, and a 3-month-old son, Luke. Keith and his wife, Kellyn, have two children; a 7-year-old son, Urban, and a 4-year-old son, Banner. Patrick’s family has a piece of property where they hope to build a house in the near future, and they have cows on the property, which their daughters love to feed. Keith’s family also has property in the
country with cows on the land. David devotes a lot of time to his grandchildren, and they love spending time at his house and fishing at his pond. Wilks Air Conditioning and Heating does mainly residential repair, replacement, and service work as well as light commercial. –mh
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San Antonio Construction News • August 2017
Living the Quality life
any team members at Quality Fence & Welding have been having quite a year, from big events and fun at work to big life events at home. –mh
L-R: Gary Walker, Albert Castillo, Sean Bates, Craig Noto, Charlie Baer, John Hoot, Jenniffer Holt, Meghan Frank, Amy Avila, Dora Rodriguez, and Jordon Brown showed off their team pride on Favorite Sports Team Day.
Jeremy Smith, painter, welcomed a new baby boy to the Quality Fence & Welding family.
TJ Howard, Access Control Solutions department manager, became a grandfather with the birth of his first grandchild, James Alexander Cameron.
Amber Noto, youngest daughter of Craig Noto, president, recently got engaged to Benjamin Walker on Father’s Day at Port Aransas.
John Hoot, general manager, and Sean Bates, commercial project manager went fishing in Louisiana courtesy of Stephens Pipe & Steel.
Jobsite terror!
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ore and more workers are encountering rattlesnakes on their jobsites. It was reported there were as many as 12 rattlesnakes on a high school jobsite in Buda. -cmw
San Antonio Construction News • August 2017
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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.
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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
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.
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San Antonio 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
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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!
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San Antonio Construction News • August 2017
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The adventure continues
hen Mike McGinnis, Allen & Allen Company, isn’t working to help supply contractors for their projects, he’s working on a project of his own. “Several years ago, we started a family project where we visit at least one national park a year,” says McGinnis. “This is one of the best things, if not the best thing, we have done for our kids.” Working on that goal, he and his family took a big road trip in June,
spanning 11 days and nearly 4,000 miles. They camped in Yosemite and Sequoia national parks and hit Kings Canyon and Saguaro national parks on the way home for good measure. So far, the McGinnis family has visited Big Bend National Park, Petrified Forest/ Painted Desert National Park, Grand Canyon National Park, Carlsbad Caverns National Park, and Yellowstone National Park. Now, they can add four more to the list. –mh
L-R: Dylan, Wyatt, Tyler, Ryder, Lisa and Mike McGinnis made it to Yosemite National Park on this summer’s big road trip.
Readin’ on the river
The McGinnis family stopped under the “Passing Through” tree in Sequoia National Park.
Karen Davis, Payroll Coordinator at Alterman Electric, is enjoying quiet time by the river reading Construction News. -rd
The McGinnis family and Magers family, who traveled with them, gathered around a campfire under a full moon at Sequoia National Park.
On their adventures through the national parks, they spotted this momma bear and her two cubs, one of whom obviously noticed them too.
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San Antonio Construction News • August 2017
Batting for the community
Submitted to Construction News
Movers and anglers
Tyler Bratten, with the help of his father, Mike Bratten and members of the industry and community, built a batting lane in Universal City Park.
M Pipe Movers Inc. recently held its 2017 fishing trip at Port Aransas, hosted by owners Barrett and Melanie Evans. –mh
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Share YOUR photos and stories . . . fishing, hunting, skiing, biking, racing, or any outdoor activity and sport. Don’t forget GREAT Vacations you’d like to send us!
ike Bratten, a partner at Beicker Consultants, helped his son, Tyler Bratten, with a project at Universal City Park, which 17-year-old Tyler managed in order to earn his Eagle Scout status. They raised $19,247 for the project, which cost $19,434 total. They put approximately 425 man-hours into the project, and several companies were a big help in the construction process,
including Bruce McOsker Construction, Parks Partners of Universal City, Keystone Concrete, Ingram Readymix, FABco, SS Turf, and De La Garza Fencing Co. Other industry and community members also contributed, including Sandra, Ed, and JoAnn Bradley; Mike, Larry, and Mary Bratten, ACI San Antonio; Terracon; Harold Gadsby; Beicker Consultants; and Tri-City Little League. –mh
Tyler made sure the project measured up to his standards.
Mike showed his son how to pour concrete into forms.
San Antonio Construction News • August 2017
Page 15
Ancient art revisited
Joe A. Lambert, Terracon, made this stone relief carving reproduction.
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ith Terracon for about 16 years, Joe A. Lambert has worked on a wide range of environmental assessment, subsurface investigation, remediation, and indoor air quality projects. Meanwhile, at home, he works on stone reproductions of carvings from Mayan, Toltec and Aztec pyramids. Born in Vienna, Austria, Lambert’s father was a career State Department diplomat, and he grew up traveling the world. He was raised in Germany, Sri Lanka (which was called Ceylon at the time), Panama, Brazil, and Mexico. Between assignments, Lambert and his family would come back to Washington D.C. for short stateside stays. After graduating from Miami of Ohio in Oxford, OH with his bachelor’s degree in natural sciences – he also took a graduate course in geology and environmental science from the University of
Some of Lambert’s reproductions were made from molds taken from archaeological sites in Mexico and some were made from other reproductions.
Texas-El Paso (UTEP) – Lambert began his career in Mexico. While there, he met his wife, Sylvia, and he began visiting archaeological ruins, where he was able to take molds of the original carvings on the sites. He notes that today, access to the pyramids and such sites would be much more difficult, and under these circumstances, he has taken molds from artist reproductions or reproductions available through government stores. “I took a mold off the plasteone and made it into stone,” recalls Lambert. “The advantage to having [the carving] in the stone is that they can also be put outside. They’re not going to deteriorate, just like if it were an original carving.” To reproduce the stone carvings, Lambert uses a mortar and cement with different dyes, and the final result is actually poured stone that looks very authentic. “I’ve given away a few of them, not only to friends but also for charity benefit auctions,” he says. “I’ve sold some of them to people who wanted them and kept the rest. And I’m always looking around for a new one to do. Most of them have relatively limited production where I do anywhere from six to 10 of them. I also have a decent collection [of my own]. I still travel frequently to Mexico and elsewhere in Latin America, always on the lookout for reproductions of indigenous or pre-Columbian pieces.” Lambert and his wife love to travel, both domestically and internationally. They have three daughters: Denise, Sophia, and Leslie. With Sylvia being from Monterrey, Mexico originally, Spanish the primary language spoken in their home, and so Lambert is fluent in Spanish and Portuguese. He has a bonsai collection, and the family lives on a few acres in the Hill Country, where Lambert says there is always something to do. –mh
Construction News ON LOCATION
Finished products
Sam Hill, shop manager, was busy doing the finish for these cabinets in the shop at CROSS, formerly CROSS Construction, which does custom cabinet finishing. –mh
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San Antonio Construction News • August 2017
A touch of Latin style
Louie Rodriguez and his wife, Mara, are not just a team in marriage or as parents, but as partners on the dance floor.
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he floors at Project Control heated up when 32-year-old Luis “Louie” Rodriguez joined the company as a project manager recently. Rodriguez and his wife, Mara, have been active in Latin dance since before they were married three years ago. Rodriguez credits dance with keeping his marriage going good and strong, and he highly recommends it for marriage counseling. While he loves playing billiards, he notes that he dances to stay married. Originally from East Chicago, IN, Rodriguez met Mara at an apartment complex in the Medical Center. He was drawn to her Indiana license plate and struck up a conversation with her only to learn that they had lived their whole lives an hour-and-a-half apart from each other in their home state. Before their daughter, Elsie, who is now 2 years old, was born, Mara was campus minister for Our Lady of the Lake University, having earned her master’s degree in pastoral studies from the University of the Incarnate Word. On the side, she was also a ballroom instructor. Rodriguez spent a lot of time watching Mara dance from the sidelines, and then he decided to take action. He asked Esteban, the owner of Studio One, where Mara used to be an instructor, if he would secretly teach him how to salsa
dance so he could surprise her for Valentine’s Day. After four months of salsa classes, Rodriguez surprised her by walking her into the studio blindfolded, starting to dance, and removing the blindfold. He recalls that she started crying, and he had to tell her to get it together, because he worked very hard to learn the moves and didn’t want to mess up his footwork. Since getting out onto the dance floor, Rodriguez and his wife have become part of Island Touch, a global dance group that learns Latin routines. He and Mara have been doing bachata, a Dominican style of dance. They have had many performances in about a year-and-a-half, including several in San Antonio, Dallas, and at the 2016 Salsa Convention at the Grand Hyatt downtown. However, the couple has not performed in six months due to an injury to Mara’s ankle. While Rodriguez says that this is not about competing, the dance groups perform amongst other dance groups to show off their different styles, including difficult footwork, which he notes is a specialty of Island Touch. Though Rodriguez went into engineering initially intent on becoming an astronaut, he wound up on a career path closer to the earth, and now he’s helping to build structures out of that earth and managing to float on air with his feet still on the ground. –mh
A protégé rises
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aving started out in the construction industry as a laborer, Brooks Black has faced a lot of challenges on the way to starting his own company, BP Construction, in 2015. Originally from Buford, SC, Black’s stepfather was in the construction industry, and during summer and breaks from school, he would go to the jobsites. Over time, he started working on jobs regularly and picked up the trade as he learned hands on. Doing residential and commercial construction for 21 years now, Black first struck out on his own with another company, Top Notch, in South Carolina in 2003. But the economic downturn hit Black’s business, and he had to close up shop. He then moved to Texas, and when he saw the economy picking up, he set out to start BP. He noticed that general contractors were looking for single entities that could handle various aspects of a job, including framing, drywall, insulation, and acoustical ceilings, rather than multiple entities handling those parts of the job separately. So, Black geared his business toward handling the whole of that scope. He has found winning proposals to be the biggest challenge starting his business here, noting that there is a lot of competition, but he figured out how to overcome this hurdle. Requesting the bid tab for jobs he sent proposals, he found that he would often be about 5 percent higher than the company that won the proposal. In order to stay competitive, he cut costs, including taking a pay cut and timing equipment rentals to when it is really needed. While BP is based in San Antonio, the company does work all over the state. Right now, BP is framing and doing the interior finish out, drywall, acoustical
F
Mara and Louie prepare for Latin dance performances with Island Touch.
Brooks Black, founder of BP Construction
ceilings, and paint for Circle K gas stations in New Braunfels and Houston. Other jobs include the metal stud framing and interior finish out for an animal hospital in Floresville, and BP recently did One World Montessori school in Round Rock. After starting his business, Black studied business at Alamo Colleges and earned a certificate from the program. While attending classes, he chose Guido Construction as his mentor, and he has worked with them on projects such as remodeling the locker room in the AT&T Center as their protégé. Black has also earned Minority, African-American, Small Business and Emerging Small Business certifications for BP. Currently working in the private sector, he hopes to expand into public work. In his spare time, he coaches basketball for National Youth Sports. He also enjoys fixing up houses and selling them. BP Construction is a subcontractor doing work that includes framing, metal studs, and interior finish out. –mh
Parting is such sweet sorrow
or the last five years, as San Antonio editor for Construction News, I have written stories and attended events that run the gamut across the construction industry. But now I must announce that I am moving on to the next phase of my career. This issue contains the last stories to bear my initials at their end, and like countless others before them, they are stories I feel fortunate and enriched for having been able to tell. It has been a pleasure getting to know and work with the members of San Antonio’s strong, tight-knit, and multi-faceted construction community.
When I first started at Construction News, I knew very little about construction or how the local industry is driven by the same sense of community that defines the Alamo City itself. In the process of learning about you, you welcomed me and made me feel like part of the family. Over the years, I’ve written about your companies, highlighted you and your hobbies, celebrated your milestones and victories, photographed you accepting awards or just having fun, visited your offices and jobsites, met your families, and enjoyed your barbecue as well as other cook-off concoctions. My five years doing this job have been fulfilling and rewarding because of you and everything you do in the industry and in our community. And though I will not be editor of your local industry paper any longer, I hope to see you around and hear from you often! To all of you who have spent time with me on the phone, via email, in your offices, in the field, or at events, thank you for letting me be a part of your journey. I am grateful that you have been a part of mine. Sincerely and with high regards, Mary Hazlett
San Antonio Construction News • August 2017
Page 17
continued from Page 1 — A milestone trifecta out of his home, garage, and truck. As he found great people and they worked together, the company grew. “There’s no secret to it,” he says with a laugh. “It’s doing good work and taking care of your employees and your employees taking care of you. That’s how it works. It’s the American way – that’s how I see it.” His son, Michael Traugott Jr., came into the business when he was 17 and now runs South Texas Drywall & Construction, a company Traugott started with Richard Mudd. “I always wanted to get into drywall,” he recalls. “I know drywall as far as finishing it, but I don’t know how to put the pieces together to build walls and acoustical and
how to bid it.” He says that partnering with Mudd to open the new company made that expansion of their services possible. Now, the companies are doing paint and drywall for John Garner Middle School and drywall for a school in Pleasanton and HOLT’s new headquarters. They’re also working on Seguin High School, Alamo Manhattan, a dorm at St. Mary’s Hall, Texas A&M in Brownsville, and a new U.S. Coast Guard hangar in Corpus Christi. Currently, at 61, Traugott doesn’t have any plans for retirement. He owns a ranch in South Texas where he raises deer and does guided hunts and has a place at the coast where they do guided fishing trips. –mh
continued from Page 1 — The Great Outdoors Throughout the weekend, the kids attended morning and evening services given by the coordinator of the SA Youth camp weekend, Jennifer Lybrook of the Victoria Assembly of God Church. The big service is always Saturday night, and this year’s was all about finding Jesus, focusing on Romans 8:39 . After Saturday evening’s service, for the first time in a long time, the kids were able to participate in a quintessential camping pastime, roasting marshmallows over a campfire and making S’mores. Niznik explains that this was one of the
rare occasions when there wasn’t a burn ban in effect while they’ve been at the camp. The next morning, the kids sat for a quick Sunday service, ate breakfast and got on the bus back to San Antonio. Niznik observes that it’s amazing what you can accomplish with the kids over a well-organized weekend. She says, “If you could see the kids when they come on Friday, and then see them when they leave on Sunday, you just know that you’ve made this huge impact on their lives, even if it is in a 48-hour span.” -bd
continued from Page 1 — A place to play and picnic
The new splash pad at Pearsall Park offers multiple ways for the kids to keep cool and have fun in the water.
wet, it would just get so muddy and boggy that you couldn’t do anything for so long.” The combination of the expansive soil and excessive rain made for quite a challenge, but Mokry notes that protecting the entire project came down to protecting the landscaping, which came down to the design. “The landscape architect did a really good job of creating swales and drainage, and it was all incorporated into the landscaping,” he says. “For example, we would have areas of landscaping with berms and swales to direct the water to drainage channels that were lined with rock. We tried to make it look natural and divert the water away from structures and paving. The key is to have a good design so that water can get away from the important areas, and I think they did a good job of that. During the job, it’s just careful planning.” Along with careful planning and waiting for the ground to dry, the construction team was also vigilant about construction materials testing. When they were ready to do paving or the parking lot, they had the proper tests performed to ensure that the soil was at the optimum moisture and density levels before doing the work. Though that happens on every job, Mokry emphasizes that it was even more important on this particular one. The superintendent on the job was Gene Koehler. Larry Clark was the architect for Bender Wells Clark Design, which did all of the landscape architecture and consulted with DHR Architects on the design of the building. The civil engineer for the site grading and site utilities was Bain Medina Bain. The MEP engineer was HM3 Engineering, and the structural engineer was Datum Engineering. The landscape irrigation consultant was Paul J. Radlet & Associates.
As the landscape, contractor on the job, Mundo Verde Irrigation & Landscaping, had the largest part of the project, and Mokry notes, “It was beautifully landscaped – trees, plants, and planters all over. It looks really good. It’s mainly native plants, and there are all kinds of different trees, shrubs, and grasses. Mundo Verde did a tremendous job of working through and overcoming the challenges with weather and sheer size of the site. They provided the necessary resources to get the job done.” The concrete contractor was Ranger Concrete, and D5 did the site work. MJ Boyle General Contractor is a local construction company that does of public work for the City of San Antonio. –mh
Association Calendar
Content submitted by Associations to Construction News ABC Associated Builders & Contractors
All events are held at the ABC office unless otherwise stated. Aug. 2: Breakfast Club; Alamo Café; 7:308:30am; for more info, email Ruby Trejo at ruby@abcsouthtexas.org Aug. 3: 25th Silver Anniversary Excellence in Construction Awards Banquet; Omni San Antonio Hotel at the Colonnade; 6-9pm; for more info, email Ruby Trejo at ruby@abcsouthtexas.org Aug. 7: Compliance Awareness: Respiratory Silica; 8-11:30am; for more info, email Dana Hickman at dana@ abcsouthtexas.org Aug. 8-11: OSHA 5810 Oil & Gas Hazard Recognition; 8am-5pm; for more info, email Dana Hickman at dana@ abcsouthtexas.org Aug. 15-16: OSHA 10-Hour in Spanish; 7am-12:30pm; for more info, email Dana Hickman at dana@abcsouthtexas.org Aug. 17: OSHA 30-Hour, 9am-4pm; for more info, email Dana Hickman at dana@ abcsouthtexas.org Aug. 21: SLP: Resource Control and Cost Awareness; 6-9:30pm; for more info, email Dana Hickman at dana@abcsouthtexas. org
AGC Associated General Contractors
All events are held at the AGC office unless otherwise stated. Aug. 1, 8, 15, 22, 29: Bexar County Leadership and Motivation Course, 1-5pm Aug. 9: Silica Presentation, 8:30-10:30am Aug. 10: CLC Summer Intern Mixer, 4-6pm Aug. 16: CIAC Reception for Dr. Tulio Sulbaran, The Petroleum Club, 4:305:30pm Aug. 28: AGC/AIA Joint Membership Luncheon; Pearl Stable; Topic: Economic Forum; networking 11:30am-noon, luncheon noon-1:30pm; to make reservations or sponsor, call 210-349-4921 or email kwilson@sanantonioagc.org Aug. 30: BCA Estimating Workshop with Joeris General Contractors, 4:30-6:30pm
tournament entry, breakfast, lunch, drinks, raffle prizes, and more, for more info or to inquire about partnerships, contact Evalon Leal at 210-696-3800 or eleal@ sabuilders.com
HCA de San Antonio Hispanic Contractors Association
Aug. 9-10: Free OSHA 10-Hour in Spanish; to register, email safetytraining@tdi.texas. gov or call 512-804-4610 Aug. 16: Monthly Mixer; Holiday Inn, 318 W. Cesar E. Chavez Blvd., 6-8pm; presentations by City of San Antonio Office of Sustainability, UT System, and Vaughn Construction Aug. 25: 3rd Annual Paloma Primer; sponsorships available; raffle tickets on sale to win a shotgun, tickets are $20 each or six for $100 For more info, call 210-444-1100 or email admin@hcadesa.org
IEC Independent Electrical Contractors
All events are held at the IEC office unless otherwise stated. Aug. 1, 10: Journeyman/Master Prep Class, 5-9pm Aug. 9-11: IEC of Texas State Conference, Albuquerque, NM; IEC National Board Retreat, Atlanta, GA Aug. 19: Electrical Maintenance Technician Class, 8am-5pm Aug. 21: Continuing Education Class, 5-9pm Aug. 31: Grand Opening/Ribbon Cutting Ceremony, IEC Training Center, 4-7pm For more info on these events, call 210.431.9861 or visit www.iecsanantonio. com
MCA–SMACNA Mechanical Contractors Association Sheet Metal & A/C Nat’l Assn.
Aug. 2: Regular & Associates Meeting, Oak Hills Country Club, 11:30am Aug. 16: Joint Industry Fund Meeting, Oak Hills Country Club, 11:30am
NAWIC Nat’l Assn. of Women in Construction
AIA American Institute of Architects
Aug. 4: 8th Annual Shoot & Skoot, National Shooting Complex Aug. 17: AIA Healthcare Knowledge Committee: American College of Healthcare Architects and Academy of Architecture for Health Luncheon, AIA Center for Architecture
ASA American Institute of Architects
Aug. 15: General Meeting/6pm Networking; 6:30 Dinner; 7pm Presentation/The Petroleum Club of SA/“Take Ownership of Your Future”/RSVP online www. asasanantonio.org or 210.349.2105 Aug. 16: Safety Update/11:30am-1pm/ Western States Fire Protection Office/ Contact Jennifer to RSVP 210.349.2105 Aug. 17: Lunch & Learn: Electrical Safety/ 11:30am-1pm/ESC Safety Consultants Office / RSVP online www.asasanantonio. org or 210.349.2105 Aug. 24: Sporting Clay Shoot/National Shooting Complex/1pm/RSVP online www.asasanantonio.org or 210.349.2105 Aug. 29: Lunch & Learn: Fair Labor Standards Act (FLSA) Changes/Petroleum Club of SA/11:30am – 1pm/RSVP online www.asasanantonio.org or 210.349.2105
Aug. 2: Chapter Anniversary Meeting Hosted by Past Presidents; Petroleum Club of SA; 5:30pm networking, 6pm meeting; to RSVP, email MichelleU@ urbanconcrete.com, or for more info, visit www.nawicsatx.org
PHCC Plumbing-Heating-Cooling Contractors
Aug. 10: Membership Meeting; The Petroleum Club; 11am-1pm; speaker is WHY Group on multiple generations in the workforce Aug. 12: Plumbing Apprenticeship Program Testing, St. Philip’s College-SW Campus, 8am Aug. 15: Early Bird Registration Deadline for Fishing Tournament in Rockport on Sep. 16 Aug. 12, 26: Plumber’s Continuing Education classes For more info on these events, visit www. phcc-sanantonio.org
SAMCA San Antonio Masonry Contractors Assn.
Aug. 30: Membership Meeting, Pappadeaux Restaurant, 76 NE Loop 410; noon; $30 per person; for more info, call Debbie at 830-606-5556
TACCA
GSABA
Texas Air Conditioning Contractors Assn
Greater San Antonio Builders Assn.
Aug. 10: Sporting Clay Tournament; National Shooting Complex; $500 per team, four shooters per team; fee includes
For information about TACCA, visit TaccaGreaterSanAntonio.org or call 210901-4222
www.constructionnews.net publishing the industry’s news
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★ San Antonio ★ Austin ★ Dallas/Fort Worth ★ Houston
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San Antonio Construction News • AUG 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
Reaching new heights Marvin Ohlenbusch, COO Alamo Crane Service San Antonio, TX
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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?
SERVICE PROVIDERS Sep: Green Building Nov: Architecture & Engineering Oct: Specialty Contractors Dec: Construction Equipment
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
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
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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 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
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
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
San Antonio Construction News • August 2017
Page 19
NEXT TH MON
GREEN BUILDING
If you would like to represent your company in an upcoming FOCUS, contact your Austin Editor for an Interview Carol Wiatrek (210) 308-5800 AustinEditor@ConstructionNews.net
Portable assistance Melisa Kirkpatrick, Owner The Outhouse Boys Houston, TX
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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
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
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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?
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What designs may come
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
Nancy Flores, a design consultant, looks through a selection of cabinet doors at Builders Design Group on 1604, where it has been for the past four years. Flores has been with the company for about 11 years now. They supply builders for interiors and exteriors. –mh
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San Antonio Construction News • August 2017
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Round-Up Lauren Setterbo has joined Cardno Structural Engineering as a business developer. With nearly 10 years of marketing and development experience in the engineering industry, she will be responsible for establishing and maintaining client relationships. She will also take a lead role in local community involvement initiatives. She is active in various San Antonio professional and civic organizations, including the Urban Land Institute and Society for Marketing Professional Services. Larry Diaz has joined Sundt Construction as a lead estimator. With more than 15 years of experience in the industry, he will help maximize client value on projects through cost estimating. He is a volunteer with Engineers without Borders’ Alamo Professional Chapter and was part of the chapter’s initial travel team to Papachacra, Bolivia. He earned his bachelor’s degree in industrial technology from Texas A&M University-Kingsville and his master’s of public administration from UTSA. -mh
Round-Up Submissions
Brief company announcements of new or recently promoted personnel, free of charge, as space allows. Submit Info & Photo: SAeditor@ConstructionNews.net (210) 308-5800
Joanna Armstrong, CPSM, has been promoted to marketing resources manager, corporate development, of Raba Kistner Inc. With the firm since July 2004 as a database administrator, she was promoted that December to marketing coordinator. After managing multiple initiatives, she is being recognized with this promotion to reflect her increasing role for oversight of a new business process involving staff and coordination with outside consultants. She earned her bachelor’s degree from West Texas A&M University and her master’s from Texas A&M University.
San Antonio Construction News • August 2017
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JOB SIGHTS
Bartlett Cocke General Contractors recently began a two-year job at John Garner Middle School. Christopher Boerner, R&S Excavation, was one of the heavy equipment operators helping to clear the way as the job got going. The project manager is Roger Deatrick, and the superintendent is Rick Hollander. –mh
Roberts Concrete Construction was performing the removal of concrete at a business park on Harry Wurzbach Road. L-R: John Ross and Horacio Benavides worked on replacing a concrete curb while the rest of the crew worked on a portion of parking lot. The foreman on the job is Kevin Dawson. –mh
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With the comforts of home
he Plumbing-Heating-Cooling Contractors (PHCC) San Antonio Chapter hosted a Contractor Appreciation Mixer Jul. 6 at the new Expressions Home Gallery, which serves as both a Morrison Supply showroom and event space. –mh
L-R: Patrick Eaves, Morrison; David Gonzales Morrison; Bill Gibbons, MOEN; George Phillips, branch manager
L-R: Jimmy Shafer, Shafer Services, and Pat Freund, Primo Plumbing, with Shellie Phillips, Morrison Expressions showroom manager, and Perry Beyer Jr., Beyer Plumbing, in the background
Josh Scott, St. Philip’s College, won the Moen kitchen faucet raffle, which was donated by Moen for the mixer.
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San Antonio Construction News • August 2017
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Driven to up their game
he Black Contractors Association (BCA) threw golf clubs into the mix at its Topgolf Networking Mixer Jun. 29 with food, refreshments, and of course, the chance to drive some golf balls out onto a competitive range. –mh
L-R: Jeannetta Tinsley, Straight Line Management; Renee Fruiht and Sherrie Arnold, Crownhill Builders
L-R: Michele Thomas, B Michele Events; Nejla Neal, SKANSKA; Timothy Brown, Well Made Construction; Amie Kromis, SKANSKA
L-R: Tom Hewitt, BDI Insurance; Bill Rhodes and Alan Curry, Joeris; Henry Boone, Turner Construction
Henry Boone, BCA chair, takes his stance and prepares to take his shot.
L-R: Henry Boone, Turner Construction; Deborah A. Omowale, chairman of the Alamo City Black Chamber of Commerce, and Joe Jarmon, Alamo City Black Chamber of Commerce
L-R: Diego Arroyo and Wills Raba, Guido Construction; and Kyle Wisniewski, F.A. Nunnelly Company
L-R: Fred Akabogu, Freddie Real Estate Services, and Eugene Herbert, Go Time Realty
San Antonio Construction News • August 2017
Growing demand
Tony Ridout, Managing Shareholder, RidoutBarrett CPAs & Business Consultants
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 construction 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
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San Antonio Construction News
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PRESENTED BY San Antonio
CONSTRUCTION NEWS
™
The Industry’s Newspaper
Feature Publication Supplement August 2017
Mark Langford Photography
Sp
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GL Contracting is a licensed General Contractor performing commercial and residential new and remodel construction. We have a wide range of experience in complete design services and construction self performance. GL Contracting is capable of managing multiple projects while maintaining our focus on individual projects through completion. As a Disabled Veteran Owned Contractor, our emphasis is serving Government Contracting with our best value business. GL Contracting was established in 2010 and is headquartered in San Antonio, Texas. Since it’s inception, the company has experienced stable growth in sales from $250,000 to $7.5 Million. Our growth as a single owner small business, emerging from residential remodeling into commercial renovations and construction, is focused on Customer satisfaction as our priority.
SERVICES GOVERNMENT – New Construction • Design-Build • Renovation TxDOT – Airport Improvements • Renovations • New Construction COMMERCIAL CONSTRUCTION – Retail and Renovations SUBCONTRACTOR PARTNERS F & W Electric Contractors Inc. Floresville, TX
Eagle Airport Marking Inc. Kilgore, TX
Alpha Paving Industries LLC Round Rock, TX
Red Dot Buildings Athens, TX
CLIENTS City of San Antonio Capital Improvements • TxDot Aviation • Joint Base San Antonio
Corporate Office 210.290.9792 | Fax 210.714.9473 Gabriel Lomas Cell 210.825.1984 900 Isom Road, Suite 222 | San Antonio, Texas 78216 www.GLContractingLLC.com SBA: 8(a) | DOT: DBE | SCTRCA: SBE, MBE, HABE, DIBE, VBE, HUB | CVE: SDV0SB
Contents
4 Bexar County Small Business and
5 6 7 8 9
Entrepreneurship Department A Win-Win Proposition HR For Small Business
The SBA Bond Program – Help for Small and Emerging Contractors
Small Business Self-Performance Roots
Tools for the Small Business – Non-Disclosure Agreements & Teaming Agreements
10 11 12
Thanks and Acknowledgements
13 14 15
Specialty Certifications
16 17 18 19
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xtending the Reach is a supplement to the August 2017 edition of San Antonio Construction News with additional mailed distribution in the San Antonio area. San Antonio Construction News is the flagship publication of Construction News, Ltd. Additional copies of this supplement may be purchased for $10. Photo credits: Aerial photo of Port San Antonio courtesy of Port San Antonio. Cover and aerial photos of San Antonio skyline and completed projects by Mark Langford Photography.
Obtaining Certifications
The Subcontractors’ Do’s and Don’ts Guide to Small Business Strategy How to Master Your Capabilities Presentation
The 3 Financial Statements You Need to Keep Your Banker Happy Small Business Certifications and Success
Lessons Learned While Overcoming Obstacles
Empowering Small Businesses One Contract at a Time
Insurance for Small Businesses and Contractors
www.ConstructionNews.net
CONSTRUCTION NEWS
™
The Industry’s Newspaper
P.O. Box 791290 San Antonio, Tx 78279 (210) 308–5800 Copyright 2017 San Antonio Construction News
Publishers....................... Buddy & Reesa Doebbler Art Director.................................. Reesa Doebbler Managing Editor...............................Carol Wiatrek Production................................ Helen Greenwood Account Manager............................Dana Calonge Administration.....................................Terri Adams Construction News Editors..... Melissa-Jones Meyer Tanya Erickson, Mary Hazlett, Carol Wiatrek
Bexar County Small Business & Entrepreneurship Department
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he Bexar County Small Business & Entrepreneurship Department has been working with small, minority, and women-owned business enterprises (SMWBEs) through the SMWBE Program for 17 years. The program focuses on the formation, growth, and acceleration of SMWBEs, Disadvantaged Business Enterprises (DBE), and Historically Underutilized Businesses (HUB) through capacity-building programs, education & training, outreach, networking, and our annual SMWVBO Conference in December, which attracts over 3,500 people each year.
Entrepreneurship
The success of the SMWBE Program is dependent upon cooperation of 48 County offices and departments. It focuses on the purchasing, scope of work and data collection processes that are, of necessity, highly variable because the scope of items and purchasing authority by the County is so varied. All county projects have a 20% minimum for minority or women-owned business participation and a 30% minimum for small businesses. The Contract & Diversity Management System (CDMS) is used to determine and report the County’s service and product acquisition activities. Included in the directory are certified SBE, MWBE, DBE and HUB businesses. The directory is user-friendly and is accessible to all county employees and contracted vendors. The system is also used for the solicitation of Request for Proposals (RFP), Invitation for Bids (IFB), and Request for Quotes (RFQ) that provides SMWBEs with the opportunity to participate and receive awards. CDMS is a best practices type of tool used to manage contract compliance in order to determine whether or not the SMWBE program is meeting its Mission. CDMS provides current process information for compliance tracking for constitution, supply, and service contracts, vendor certification, contract management along with audit and report capabilities. The Opportunity Link on our website is an initiative of the Bexar County SBE Department to address business development and small, minority and women-owned business participation in public procurement opportunities. Our website is designed to link businesses to opportunities, and our Opportunities page is a one-stop shop for contracting opportunities with a variety of government agencies. We link to almost 300 government and public
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agencies that contract with SMWBEs, DBEs, and HUBs including Bexar County projects, links to the City of San Antonio, connections to surrounding counties and municipalities, information on school districts, colleges, and universities, and state and federal entities. We even link to general contractors looking for subcontractors or partners! (URL: www.bexar.org/133/ opportunities) The opportunity link is a one-stop shop for links to Bexar County and surrounding areas, but our brand-new “How Do I Do Business with Bexar County” page (url: www.bexar.org/ businesswithbexar is going to be, current one is www.bexar.org/2377/connect-with-bexar-county) brings every opportunity in Bexar County to one place. We make it easy to register as a vendor, find requirements for doing business with the county, access our CivCast bid management system, find open and upcoming bid opportunities, and information on bridge & roadway projects. The Bexar County Small Business & Entrepreneurship Department’s mission is to link your business to opportunities for acceleration. SMWBExcel is designed to help small, minority, and women-owned businesses in the fields of Construction, Architecture & Engineering Professional services, Goods & Commodities, and other professional services grow, accelerate, and work with Bexar County and other public entities. The SMWBExcel program is designed in three phases - the Start Up Phase, the Growth Phase, and the Accelerate Phase, each with a different focus. SMWBExcel is designed to address problems identified by small, minority, and women-owned businesses and to provide them with tools to overcome obstacles to their success. Bexar County partners with incubators, accelerators, educational partners, and government organizations to provide a wide array of training, services, recontinued on Page 13
Feature Publication Supplement to San Antonio Construction News – August 2017
A Win-Win Proposition
F
.A. Nunnelly Company is one of the oldest general contracting firms in San Antonio. Celebrating 95 years in business, they not only believe in conducting their business with integrity, but also in helping others develop with the right tools so they too can achieve success. CN: When did become involved other companies?
your company with mentoring
DN: We probably started doing this in the mid ‘90s. The schools were the first ones to step up and say, ”We need more subcontractors and minority participation to help spread the wealth.” They started providing us with opportunities to mentor business owners.
DN: A true mentorship program kicked off with Bexar County but before that, we always did things to help subcontractors with advice and other things. CN: How did you decide who to help or mentor? DN: There wasn’t a formal selection process. People have always come in to us wanting to do work. Through that process, often we would find people who needed help. We would talk and meet with them, introduce them to bonding companies and bankers, and let them know some of the things they would have to start doing to run a viable business. That’s everyone’s problem – being a good craftsman, owning a truck and not really having a business plan. CN: Heading them into the right direction? DN: We want to teach them the importance of the business and running it like a business and not like a paycheck. That has always been the issue. I don’t care what scale of program you are in, that’s where it all has to start. We have always done that and Scott and I are probably the most active due to our specific knowledge. A simple statement I use all the time is, “I have never seen a company go out of business from not enough work. But I have seen a ton of them go out for too much work.” They don’t have the money saved
CN: So now you’re involved with the Bexar County/AGC mentor program. How many people do you mentor at a time? DN: Right now we have six protégés and 12 mentors. We mentors work in a two-person, two-company team. Typically for a company like us, I work with a larger GC and I will bring the smaller picture to the game. It gives the protégé a good comparison of how different sized companies do things. We go through a whole process. They first have a classroom process that all prospective companies must go through. It’s an eight-week program covering financing, accounting, and other basics. Then they graduate. Then as a company, they can apply to the mentor protégé program. We take their application and review them and based on the number of mentors we have, will determine the number of protégés. CN: What is the length of the program? DN: We work with the protégé company for two years meeting once a month, so it is a pretty extended process. Everyone really has to commit to make it through this program. The real benefit with working with the county is that they hire additional consultants who are part of the package. For example, my first partner was Rene Garcia with Zachry. We were teamed up with Julissa Carielo of Tejas Premier Building Contractor. She was in the first class. We worked with her and found her technology was lacking, so then the Country paid for a tech expert to tell them what they needed and trained them. It’s a very thorough process. There is not anything that we don’t touch on. It is a great program for people to get in, but is also a big commitment on their part. They have to commit their time and we will grill
Feature Publication Supplement to San Antonio Construction News – August 2017
them about getting things done for the next meeting. CN: This industry is comprised of folks who are very independent thinking and may think they might know more than they really do. DN: When you have so many people going through, you have many different types of people. Some people do have difficulty in meeting the expectations of the program. We have an application and interview process to get selected into the mentorship program. There is a point where I would say some people have been eliminated because they are not really ready to run a company or they are not really here to learn. A lot of people think that getting into this program is going to guarantee them work. They think since I’m their mentor they are going to get all my work. That’s not what we are here for. We make that clear from the beginning - not why we are here or they are here. We are here to help them and their business. CN: How many companies have you mentored over the years? DN: In the Bexar Country program I am preparing to graduate my 5th protégé. Besides that, there have been 15 to 20 companies. CN: You have to take that as a compliment. There are a lot of people who would not spend the time to do it. DN: It does make me feel good, but in our office, we also know we need them. Everybody that we can get into the industry running a real company is a benefit. The industry needs to grow and we need good people in it. CN: There is a terrific value these protégé companies receive going through the mentor protégé program. What do F.A. Nunnelly and you personally get from being on the mentor end?
Doug Nunnelly DN: Now we are partnering with another mentor and we are each learning from the other. The protégé is asking questions and we’re trying to answer them, so there is a discussion going on. We are often reminded of what we know and haven’t said for a while or haven’t used in our own office. It’s an ongoing thing that keeps you sharper and gives you some different viewpoints. It also reminds you of some struggles you want to avoid. We are extremely proud of what we have done because we feel like it is putting back into the industry. We are all making our living this way. It’s up one day and down the next. It’s a struggle. It’s not a dream world. When we succeed we are pleased and proud, whether it’s the building we built or the people we helped or worked with hand-in-hand. You want to accomplish and see your accomplishments. CN: What advice would you give to other companies who are considering becoming a mentor in the Bexar County program? DN: Call Renee. The pride, the self examination. and the benefits to the industry all pay off to you. And if you have the opportunity to be a mentor, you should definitely get involved. You will enjoy it and it’s not a real task; it’s kind of a labor of love. CN: Your final thoughts Doug? DN: I think anybody who reads this article should stop and think about where they are and which side of the fence they could be on – maybe a potential protégé or a potential mentor. As a protégé, take advantage of what is being offered to improve your company. As a mentor, there are a lot of corporate benefits that you would get from being a mentor. And there are a lot of personal benefits like pride and all those kind of things that you will reap or receive from doing it. -bd
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Mentor - Protégé
CN: Did you mentor before Bexar County and Associated General Contractors started their program?
up to carry them and they don’t understand what their expenses are going to be to start a job. That has been a major issue with all small companies.
Human Resources
Mr. Hobbs has more than 30 years of Human Resource and training experience. His extensive background includes positions as a Personnel Management Specialist with the Federal government and a Human Resource Manager for the General Dynamics Corporation. Throughout his career he has performed a significant amount of consulting, training, writing, and university-level teaching; with more than 40 published articles. Larry assists companies with policy development, problem-solving, writing employee handbooks, investigating discrimination/harassment complaints, supervisory training, and many other HR topics. Larry has a B.S. from Abilene Christian University and an M.B.A. in Organizational Behavior & Management from the University of Alaska. He is a certified Senior Professional in Human Resources (SPHR) and a Senior Certified Professional (SCP); as well as an active member of the Society for Human Resource Management. Hobbs served on the Board of Directors of the San Antonio Human Resource Management Association (SAHRMA) during 2014-15. larry.a.hobbs@gmail.com www.managementresolve.com
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HR for Small Business Is there a website or resource that allows small employers to obtain immediate responses and guidance on Human Resource issues as they surface? It is becoming more challenging for small employers that do not have full- time HR Managers to understand all of the requirements, and to know how to deal with frequent employee challenges. Most small and medium-sized businesses suffer from the same dilemma described in the question above. More and more subjects and issues are being put under the “umbrella” of HR Management. Here are a few ways to address the problem: • Send someone on the staff to as many local seminars and HRrelated meetings as you have the time and funds for. This is usually an office manager, an administrative assistant, or a supervisor from operations. • Join the local Human Resource Management Association; the annual dues are minimal. They conduct monthly meetings that concentrate on a program, lesson,
workshop, or speaker related to an resources: form samples, policy samples, white papers on about HR topic. 50 subjects, and the Resource • Get on the “Alert List” of the Center in Alexandria, VA to answer U.S. Department of Labor. They questions. e-mail frequent updates about employee relations, Federal • HRM also provides HR regulatory changes, and mandatory certification on the “HR Body of Knowledge.” Certification is posters. obtained through studying and • Conduct an “HR Audit” that testing. reviews your current personnel management policies and • Make certain that your current practices. There are about 15 Employee Handbook and the critical subjects that need to be related personnel management examined --- and it does not really forms are current, thorough, take an HR practitioner very long accurate, clearly written, and in to do the review and write the compliance. report. • Train each salaried staff • Have someone on your member, particularly managers staff join the Society for Human and supervisors, in subjects such Resource Management, a national as principles of management, improvement, association. SHRM members communication receive legislative, legal, diversity, performance evaluation, record bench-marking, compensation, keeping, discipline, and leadership. benefits, and other useful information every two weeks --- These are some of the things some of it is hard-copy, but most that need to be done in order to of it is electronically distributed to stay up with “HR best practices.” the members.
Larry A. Hobbs, B.S., M.B.A., SPHR & SCP, is an HR Specialist who assists • Additionally, SHRM members employers in policy development and have unlimited access to many training. Telephone consultation is always free --- (210) 316-4206.
Feature Publication Supplement to San Antonio Construction News – August 2017
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The SBA Bond Program Help for Small & Emerging Contractors
he Soft Bond Market — Contractors who work for public owners are required to provide surety bonds. These bonds guarantee the work is performed as per the contract (Performance Bond) and all the subcontractors and suppliers are paid (Payment Bond). The current construction boom has resulted in an abundance of surety capacity. There are a lot of bond companies in the surety arena these days. As these companies compete more aggressively for business, underwriting requirements have become looser. The current surety market has become the “softest” we’ve seen in at least 15 years.
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Who Qualifies? To be eligible for the SBA Bond Guarantee Program, contractors must meet the SBA’s standards for qualification as a small business. A general contractor cannot have annual revenues larger than $36.5 million. Trade contractors cannot have more than $15 million in annual revenues. The SBA can guarantee single bonds up to $6.5 million, and up to $10 million on certain federal government projects. How Does It Work? To apply for bonding in the SBA Program, a contractor must go through an SBA-authorized surety agent who can place the bond with an SBA-authorized surety company. Even within the SBA Bond Program, a contractor must meet certain credit, experience, and financial capacity standards to qualify for bonding. The surety underwriter will require the same basic underwriting information. If the underwriter decides the contractor qualifies for bonds, but does not quite meet their standard underwriting guidelines, the surety may offer surety support in the SBA Bond Program. The SBA Bond Program can be a godsend to a bondable contractor because
their underwriting requirements are considerably easier to satisfy than those found within the standard surety marketplace. Response Time It is true that in the past, the SBA’s response time was not always very fast – at least in comparison to the turnaround times outside the program. This was largely due to the paperintense process that had developed over the years. The same information was required on multiple forms that all required original signatures. Understandably, the SBA was often slow to respond under the weight of a cumbersome and outdated system. Today’s SBA has caught up with the times and has firmly embraced the digital age. The SBA-required forms have been consolidated down to a total of just two – the 994 (Application for Surety Guarantee) and the 912 (Personal History Sheet) - for the initial setup, and only one form (the 994) for each new bond request. The SBA Quick-Bond Program provides bonds for contractors with decent credit up to $250,000 – with no financial statements required. All the SBA forms are now available electronically through the SBA’s website and can be submitted to the SBA-authorized surety agent via email. The SBA also created the “e-App System,” which is an internet-based bond submission and approval program. Agents and sureties in the SBA Bond Program use the system to upload underwriting information and the SBA forms instantly. The e-App System has increased efficiency, resulting in a very nimble and responsive process. The typical SBA response time for approval on a new account is 3 to 5 business days. For bid bond requests, the SBA usually responds within 24 hours and is even able to respond the same day if necessary. This is as good as, if not better than, the turnaround times available in the open bond market.
Many small and emerging contractors struggle with the issue of quality financial statement preparation. Obtaining a CPA Review for the first time from a construction-oriented CPA takes considerable time and can be somewhat expensive. It may even be cost-prohibitive unless the contractor will need several bonds per year to spread out the expense over the course of several jobs. With the SBA Program, the contractor can do significant bonded work while they seek out and form a relationship with a qualified CPA at the same time. But perhaps the most important benefit of the SBA Bond Program is that it allows available limits on bank lines of credit as additional working capital. If a contractor has established a line of credit from an FDIC-insured bank, the amount available for use is added directly to the existing working capital shown on the contractor’s balance sheet. In addition, the SBA’s minimum working capital-to-backlog requirement is significantly lower than it is outside of the SBA Bond Program. By taking advantage of the SBA Bond Program, a small contractor who may have once had only a modest ability to bond, can exponentially increase their surety capacity. This enables the small and emerging
Jim Swindle is the owner and principal agent of Alamo Surety Bonds, a professional surety agency in San Antonio. Mr Swindle has been in the surety bond business for 29 years, both as a surety underwriter and agent. He gives presentations on contract surety bonds for construction trade associations, large general contractors, and governmental entities. contractor to take their business to the next level of growth – and in a relatively short period of time. The resulting increase in local contractor participation on public works projects creates a boon to the local economy as more of those construction dollars stay within the community. Most small and emerging contractors have tremendous growth potential, but can be held back by the inability to maintain adequate bond capacity. The SBA Bond Program encourages surety companies to provide significant bond capacity for these small contractors who otherwise would not qualify. The ultimate goal of the SBA Program is to give worthy and capable small contractors the chance to develop into large, successful prime contractors.
Benefits of the SBA Bond Program In the SBA Program, a contractor without CPA-prepared financial statements can be approved for single bonds up to as high as $1 million.
Feature Publication Supplement to San Antonio Construction News – August 2017
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Bonding
his new soft market has not yet, however, reached its way down to the small and emerging contractor segment of the industry. Bonding can still be a significant barrier for small contractors who often find bonding difficult or impossible. Fortunately, there are sureties and programs that cater to small and emerging contractors seeking their first bond or increasing their existing bond capacity. The Small Business Administration (SBA) has a program that guarantees up to 90% of a bond issued in the program. The SBA provides this backstop in exchange for a relatively small fee to the contractor - 0.729% of the contract amount. The SBA Fee is in addition to the bond company’s premium charge, however, most sureties offer special SBA rates to adjust for the extra cost of the SBA Fee. The surety underwriter, in turn, is able to offer a more aggressive bonding line than would be possible without this SBA support.
S H O W C A S E
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Self-Performance Tools
nly seven years ago and with just a handful of employees, Roland Davila founded RCO, a civil work subcontracting company – but it didn’t stay small for long. With the help of R.J. Delagarza, who joined in 2013, RCO evolved into a general contractor while staying true to its self-performing roots. Today, the 35- employee-strong company boasts an SBA 8(A) designation, a HUBZone certification, and participates in two mentor/protégé and JV programs.
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Small Business Self-Performance Roots
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CO’s success in such a short span is no accident. “Our main strengths in the selfperformmance area are earthwork, utilities, and concrete,” Delagarza says. “All three have given us a small competitive advantage in civil GC contracts that we pursue as well as opened up doors for ground-up subcontracting projects.” Depending on the project, RCO reaches out to the general contractor’s estimator with interest on bidding out items they can selfperform. Relationships are built during the bid process and sustained over the project’s duration. “We pay close attention to details and make it a point to know what the owners and inspectors are looking for on projects,” Delagarza continues. “We work very hard to stay ahead of the curve and on the critical path.” RCO believes its ability to successfully self-perform work in this market is attributed to its employee retention and training; continuing education and employee safety are top priorities. Safety orientation, including an OSHA 10
class paid for by RCO, is mandatory for new employees. Supervisory and management personnel are required to obtain OSHA 30 certification. A full-time safety manager handles daily toolbox talks and the corporate office’s safety meetings. “We have 10 employees who have been with us since 2010,” Delagarza says. “We have a great working relationship with our field staff. We rely on them heavily and are blessed to have them as part of the RCO family.” Delagarza believes positive strides have been made in the SMWVO arena since he started RCO. In 2014, RCO received its Small Business Administration (SBA) 8(a) designation under which it was awarded sole source projects from Joint Base San Antonio (JBSA), Directorate of Public Works, and Air National Guard. Over the past three years, RCO has built a working relationship with local agencies including San Antonio Water Systems (SAWS), San Antonio River Authority (SARA), and Brooks. “Many agencies are requiring to meet small business goals which sort of force general contractors to go out and actively seek small business contractors,” he says. “This helps businesses get a piece of the pie while actively building relationships with larger companies.” Relationships are what bring RCO opportunities in the form of word-ofmouth referrals and repeat customers. “RCO has been an exceptional
contractor to work with over the several projects that have have completed,” San Antonio River Authority’s Dustin Moore P.E. says. “If any issue ever arose, they came up with solutions that were cost and schedule efficient. Their primary focus was always job completion with the highest level of quality and safety.” “We are honored that others find our work good enough to have other general contractors go out of their way to recommend us and contact us,” Delagarza says. “I think that not only says something about our management relationships, but the quality of work from our field staff.” Delagarza encourages anyone wishing to start a construction business to utilize available tools. “Reach out to the SBA and the programs they offer to small businesses,” he says. “The SBA is a great program and will help guide new business owners and provide the tools to becoming a successful business. Develop good working relationships with larger GCs and clients as this will allow for future opportunities.” “The Construction News Special Feature Section will be a tremendous tool,” he continues. “It will help small companies that don’t necessarily have the resources to market their companies. This will be a great opportunity for them to share their capabilities and gain exposure in the industry.”
Feature Publication Supplement to San Antonio Construction News – August 2017
Tools for the Small Business Non-Disclosure Agreements and Teaming Agreements
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ontractors often seek strategic alliances with other contractors to complement their capabilities and increase their chances of winning a contract. In forming such alliances, it is important to use the type of agreement that best fits your needs to ensure it is enforceable and not just an agreement to agree.
Elizabeth H. Connally, Connally Law, PLLC
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rior to sharing details about your business with a potential business partner, it is wise for the parties to sign a Non-Disclosure Agreement, also referred to as a Confidentiality Agreement or NDA. By executing a NDA, you are protecting your confidential information given to the other party as the other party will only be permitted
Joint Venture or Teaming Agreement Contractors generally use either a joint venture agreement or a teaming agreement to accomplish their business arrangement. When two or more companies jointly form a separate entity to act as the potential prime contractor, this is a joint venture. This article focuses on the second type of arrangement – the teaming agreement. A teaming agreement is a tool for contractors when a prime contractor desires to work with one or more subcontractors to pursue a contract and requests the subcontractors to perform specific work on that contract if it is awarded to the prime contractor. Unlike a joint venture, a teaming agreement allows the companies to remain as independent entities while working together to prepare the proposal and be successful in obtaining the contract award. Many times the parties are very anxious to pull together the proposal and proceed, thinking they only need to put the basic terms on paper and work out the details of
Feature Publication Supplement to San Antonio Construction News – August 2017
the subcontract agreement later if they win the contract. It is unlikely this will be an enforceable teaming agreement, for without details regarding the terms of the subcontract agreement, it is merely an agreement to agree. Unenforceable Teaming Agreement The Cyberlock Consulting, Inc. v Information Experts, Inc., 2013 WL1395742 (E.D. Va. 2013) case exemplifies why it’s important to state in the teaming agreement the terms which will ultimately be incorporated in the subcontract agreement. In that case, Cyberlock Consulting, Inc. (“Cyberlock”) entered into a teaming agreement with Information Experts, Inc. (“IE”), wherein IE would be the prime contractor if awarded the contract for security services. The teaming agreement said if the parties were successful in getting the prime contract awarded to IE, then IE would enter into a subcontract with Cyberlock. The teaming agreement included general terms which described each company’s anticipated scope of work, but it did not include, as an exhibit or attachment, the actual subcontract agreement the parties intended to enter into. In addition, the teaming agreement stated that either party could terminate it if the parties were unable to negotiate a subcontract agreement in good faith. After IE received the contract, the parties attempted to negotiate a subcontract agreement without success. IE then terminated the teaming agree-
ment, and Cyberlock sued to enforce it. The court determined the teaming agreement stated only a framework for negotiating a subcontract agreement sometime in the future and was, therefore, unenforceable because it was merely an agreement to agree. Thus, it is very important that the teaming agreement include not only the parties’ intentions regarding the teaming agreement but also the subcontract agreement which they intend to sign on award of the contract to the prime contractor. Checklist for an Enforceable Teaming Agreement: The teaming agreement should: 1. state its purpose and specify the proposal that the parties are responding to; 2. describe each party’s role, not only with regard to proposal preparation but also the resulting subcontract agreement when the prime contract is awarded; 3. provide protection for the proprietary information and intellectual property of both parties; 4. set forth indemnification provisions; 5. state the term of the teaming agreement; and 6. incorporate, as exhibits, the request for proposal, each party’s proposal responsibilities, the subcontractor’s scope of services and the form of the subcontract agreement.
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Agreements
Ms. Connally is the Managing Shareholder of Connally Law, PLLC, San Antonio, Texas. She is licensed to practice law in OH, DC, HI and TX and is a former warranted Contracting Officer for the U.S. Dept. of State (“DOS”), where she handled contracts for the DOS’ largest procurement office in Frankfurt, Germany. Ms. Connally counsels clients in the areas of SBA and VA certifications and compliance as well as construction contracts, government contracts and DOL-related compliance issues. Ms. Connally’s email address is ehconnally@eclegal.biz.
to share or use the information as directed by the NDA. Key elements of a NDA are: identifying the parties, defining what is deemed confidential, describing the confidentiality obligation of the party who receives the information, identifying things that are excluded from confidential treatment, such as public information, and stating the term of the NDA. Once the parties agree upon the NDA, then they can get to work on the teaming agreement.
Our Thanks to Everyone
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hen we first envisioned this special feature, “Extending the Reach,” our goals were pretty simple. We wanted to help Small, Minority, Woman and Veteran-owned (SMWVO) companies with valuable information they could use to help them achieve success in starting or growing their business. Starting a business today is a daunting task and it takes a special type of person to risk everything to be their own boss and run their own company. Decisions they make can lead to great success or great failure. The construction industry can be non-forgiving in many aspects and having good information or knowing where to find it can make the difference. Finding qualified employees, bidding within your qualifications and limitations, sticking to a budget, insurance and bonds and so many other items are what an entrepreneur needs to know to effectively run a business. 10
The articles in this publication were written by people with vast experience in their fields. They too wanted to help those on their way up with sharing some of that knowledge. The construction industry needs new qualified entrants in all fields. The industry is experiencing a serious skilled labor shortage and everything each of us can do to promote quality workmanship strengthens the entire industry. Hopefully one day someone will tell us or one of our feature writers that the “Extending the Reach” feature or a particular article made a difference. We are very grateful to all the people who spent so much time writing these very informative articles. Also we want to thank the sponsors and advertisers who made this project a reality. We hope to publish this feature yearly to help the next generation of SMWVOs by “Extending The Reach” again. Buddy Doebbler, Publisher Feature Publication Supplement to San Antonio Construction News – August 2017
Mark Langford Photography
Obtaining Certifications
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he South Central Texas Regional Certification Agency (SCTRCA) is a 501c(3) non-profit corporation that represents public entities in the South Texas area. The entities we represent are committed to enhancing the participation of Disadvantaged, Small, Minority, Woman and Veteran Owned Businesses in public/ government contracting and purchasing activities. At the SCTRCA, we seek to connect the small business owner to economic opportunities through the power of certification. The SCTRCA is responsible for the certification process for our member entities, which include:
The City of San Antonio • Bexar County • Alamo Colleges Brooks • Edwards Aquifer Authority • Port San Antonio San Antonio Housing Authority • San Antonio ISD San Antonio River Authority • San Antonio Water Systems University Health Systems • VIA Metropolitan
The SCTRCA offers a SMWVBE (local) program under which vendors who meet eligibility requirements are certified as Small Business Enterprise (SBE), Minority Business Enterprise (MBE), Woman Business Enterprise (WBE) and/or Veteran Business Enterprise (VBE). A vendor can be certified with multiple certifications as long as the eligibility requirements for each certification are met. The SCTRCA also offers a federal program that consists of the Disadvantaged Business Enterprise (DBE) and Airport Concessionaire Disadvantaged Business Enterprise (ACDBE) certifications. The ACDBE and DBE are reviewed and processed according to the Texas Unified Certification Program (TUCP). The TUCP follows Federal regulations, 49 CFR, Part 26 and Part 23. The certification applications for both programs as well as additional information can be found on our website – www.sctrca.org. Feature Publication Supplement to San Antonio Construction News – August 2017
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Do’s and Don’ts
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enerally speaking, one of the most important things small, minority, woman, and veteran-owned businesses can do to increase their chances of getting work and growing their companies is to form a relationship with general contractors before bid day. To help small subcontractors navigate their way to strong relationships with general contractors, Jason Smith, president of San Antonio Division of SpawGlass, along with fellow team members, proposed a list of do’s and don’ts aimed toward establishing and maintaining positive relationships with general contractors. “It’s really beneficial for small businesses to establish relationships with general contractors or companies that award work in advance of specific project bids, and to their benefit, they’ll learn things about the project,” says Smith. “They’ll learn things about the expectations of them, and the benefit to them is they won’t waste their time submitting a bid that is either going to be excluded or disregarded because they didn’t understand what they were bidding.” It’s important to know what general contractors look for and expect from you as a subcontractor and how you can conduct business with them in a professional manner that leaves a favorable impression for enduring business relations. Smith provides a list tips on how to accomplish this. SpawGlass is a general contractor based in San Antonio. Louis Spaw and Frank Glass established the company in 1953. –mh
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The Subcontractors’ Do’s and Don’ts Guide to Small Business Strategy The Do’s
DO develop mentors and/or business contacts. DO get certified with the SCTRCA (as applicable) and other governing agencies as appropriate. DO have a clear, simple business plan that can be communicated easily. DO join and attend industry-related association events. People need to know who you are, and getting out there to network and shake hands is a good way to introduce yourself. DO develop relationships and or systems that lead to project leads. DO establish relationships with general contractors (prior to project announcements). Start with preconstruction or estimating personnel. If you’re making a cold call, talking to the estimators is a great place to start, because they are full of information. Bring them tacos or donuts, and get a conversation going. DO handle your financial matters promptly. DO know your financial and performance limitations. It’s not good to bid on work you can’t handle, but don’t think too small either. If you’re able to handle the work, step out there and do it. DO remember that safety and quality are part of every conversation. It’s not all about the dollar or the handshake. Doing the work well and safely has a lot of importance and value. DO make positive contact with general contractors’ estimating or project teams about specific project bidding well in advance of bid/ proposal day. DO understand the submission requirements (timing, deliverables, qualifications). DO ask if a project-specific scope is already written. If so, bid that scope and include other items/services as alternate pricing. If one is not written, suggest writing one. If you bid the scope you want to do rather than the scope being bought, the general contractor cannot get an apples-toapples comparison and ends up disregarding your proposal. If a scope isn’t written, that’s your opportunity to write one and bid that. DO understand the selection criteria before bid day. It’s important to know if it’s a hard bid price only, if it’s price driven or qualifications driven, if it’s a public or private project. The estimating and preconstruction team members will know and should share that information. That way, you can focus on getting a low price or getting the best team. DO ask about the project schedule and be sure you can accommodate the allotted time for your trade. DO send your scope, inclusions and exclusions well in advance of when a bid is due, preferably the day before. If a bid is due on Thursday at 2 o’clock, know your scope and what you’re
going to bid, and send it the day before. Then, send your number on Thursday. This is always very helpful. At the very least, you should make contact and inform general contractors whether or not you are going to submit a bid or proposal so that they know what to expect. DO follow up on bid results. While bid tabs may not be available for some time, feedback is important. It’s okay to call and ask how you did, where you missed, if you were too high, or if you were late. Asking these questions can provide insight that will be helpful to you in the bidding process going forward. DO present a clear execution plan when given an opportunity to discuss a project further after bid day. DO conduct a thorough preconstruction meeting before starting any activity onsite. Proper planning time will help all parties succeed. DO ask for feedback during project execution and after project completion. DO familiarize yourself with the billing and payment criteria associated with publicly funded projects. If the job is a public project, the payment terms are not always very convenient. They can be 30 to 45 days with 30 being the most common, and those terms can really stretch a small business. DO provide a list of similar project experience. DO look for ways to engage 2nd and 3rd tier small/minority business participation. DO work with associations that provide assistance, training, and guidance to assist with opportunities to be awarded contracts.
The Don’ts
DON’T commit to more than you can do. DON’T let the first time the general contractor’s estimating or project team sees your name be on bid day. They need to know who you are before that point. If the first time someone sees your company name is on bid day, it’s too late. DON’T have significant inclusions or exclusions that vary from the requested scope of work. If so, discuss before bid day or include those only as additive/deductive alternates. For instance, in San Antonio, the local industry standard is that painting picks up the tape and float. However, in Houston, the painter only does the paint, and tape and float is done by the drywall contractor. So, be aware of the industry norm where you are bidding so that you do not include tape and float in your bid if you are bidding the framing and drywall. If you are a framing and drywall contractor bidding a job in San Antonio and you want to do tape and float, price that as an
Jason Smith alternate. Bid the scope that a general contractor asks for and bid other items or services, such as the tape and float, as an alternate. DON’T wait until five minutes until the bid is due to send your scope, inclusions, exclusions, and price. DON’T present opposition to contract terms & conditions, insurance criteria or financial/payment requirements after bid submission. Present your concerns as soon as possible. If you are concerned about what the terms and conditions are, not having the right insurance, or being able to handle the job financially, present your concerns right away. If you don’t know what those requirements or things are, ask. As soon as you know you have an issue with something, just speak up. A lot of people do. DON’T start work onsite without a well-discussed plan that includes safety, quality, schedule, manpower, equipment, and material deliveries. DON’T be unwilling to seek assistance finding local sources to meet bonding and insurance requirements. A lot of subcontractors or small businesses are not bondable because of their size. But if you want to do larger work, general contractors are most likely going to want to bond you. Understand that before you submit the bid. DON’T be deficient in paying bills timely. DON’T be reactive to planning and managing your projects. While Smith emphasizes that this is purely the perspective of SpawGlass, he hopes that this will provide some insight and guidance to small business subcontractors who are bidding work and trying to get their businesses off the ground and keep them on a good path to growth. “We want to see lots of contractors – small business and otherwise – do well,” says Smith. “And these are the things that, historically, when you do these things and you don’t do these things, we typically see people very successful.”
Feature Publication Supplement to San Antonio Construction News – August 2017
S H O W C A S E
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aymond Martinez leads the Low Voltage Systems Department with more than 26 years of experience. This department encompasses data communications, security systems, CCTV and fire alarm systems. He runs the projects with two extremely seasoned project managers and six veteran technicians and a variety of specialty products. Of course, everyone also obtained certifications in Panduit, CommScope and Ortronics, but once that was complete, it only enhanced their field of knowledge as they went out to perform their work. All four techs, in addition to Martinez, are ITS Technician certified, which is equivalent to a state license for electricians. A benefit the new division brings to Capital is that it serves as a one-stop concept. The new division has impacted Capital as a small and diverse business, and its work complements the other divisions. As most companies working in data communications and security know, specialty product certifications are difficult to achieve, not only to find the right staff, but to identify the future projects and what that profitability might be. Capital’s leadership has allowed Martinez a unique opportunity to identify projects that called for both
electrical and data or construction, fire alarms and electrical. This type of target has aided Capital in providing more broad based opportunities to self-perform on a greater number of projects. This is in addition to being more attractive to other companies who are looking for joint venture or teaming partners. It’s similar to learning that your friend of 20 years has a great new skill to offer. It opens doors that were never available to you in the past. For the customer, it allows a more streamlined approach to deal with one or two contractors versus 10 different ones. The new division promises to add to the company’s rich history. Davila established HJD Capital Electric Inc. in January 1994 to focus on the electrical industry and its need for minority contractors. In 2013, he furthered the mission by adding a Construction
Division to its repertoire. In 2015, the Low Voltage Systems Department was added and later that year, a small Worldwide Construction Department was also added. Each staff member is encouraged to take the years of blood, sweat and tears Davila has put into Capital and make it an even greater place to work and prosper through new diverse projects, untraditional partnerships, mentoring other small companies and giving back to the community through volunteerism. Today, Capital is still locally owned and operated by Davila with support from David Wineman as the vice president. Together, their mission is to demonstrate and support a strong work ethic and an enhanced selfperformance, all with a family-style atmosphere.
continued from 4 – Page Bexar County Small Business & Entrepreneurship Department
sources, information, and an expansive network of professionals. In partnership with the San Antonio Chapter of AGC, the program has had over 160 graduates since it started in 2007. The AGC/Bexar County “Basics” of Construction Training Program is designed to assist small business contractors in understanding the basic elements of running a commercial construction business. The sessions include elements of running a successful construction business, project scheduling, financial management and understanding contracts. Liens, estimating, project management, safety, business development, insurance and bonds were other important topics that were covered. The course material focuses on both technical and administrative skills, with a special emphasis on how to do business with Bexar County. The U.S. Department of Transportation’s Bonding Education Program (BEP) is a free program tailored to small businesses competing for construction-related contracts in the transportation industry. The program consists of a comprehensive set of sessions designed to provide small and disadvantaged businesses the tools and resources required to compete for transportation projects. The Bonding Education Program’s goals are to educate small contractors about industry challenges and to assist participants in their efforts to obtain surety bonds or increase their bonding capacity. Participants will interact
with service providers and bond producers, and learn how to conduct business with local, state, and federal transportation agencies. The Mentor-Protégé Program is a two year commitment where the protégé, their mentors, AGC, and the County Mentor-Protégé Program Manager work together to help develop the protégé firm’s marketing, operations, and financial performance strategy. There are five current and nine graduates of the Mentor-Protégé Program. The program exists to build effective working relationships between leaders of mature established companies and locally-owned small companies so that newer companies can benefit from the knowledge and experience of established firms. The Bexar County Small Business & Entrepreneurship Department is dedicated to the growth of small, minority, and women-owned businesses in Bexar County. With the launch of our newly redesigned website and the SMWBExcel program, we are set to help even more small businesses and entrepreneurs succeed To learn more about the Small Business & Entrepreneurship Department, the SMWBE Program, SMWBExcel, or any other information and services we offer, visit us online at www. bexar.org/smwbe, in person at the Paul Elizondo Tower located at 101 W. Nueva St or call us at (210) 335-2478.
Feature Publication Supplement to San Antonio Construction News – August 2017
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Specialty Certifications
apital started the Data Communications Department to diversify their book of business. Capital found that while there was a tremendous amount of competition within this industry, there were few minority contractors in San Antonio. In addition, those who did have the background did not have the years of experience in construction and electrical as their staff did. Henry Davila, owner of Capital, felt his team was diversified and highly skilled enough to present a nice advantage within the Low Voltage industry. Within the last two years, the Low Voltage Systems Department has grown by leaps and bounds to everyone’s astonishment due to their team support and community relationships.
Specialty Certifications
Contracting Tips
Contracting Tip: How to Master Your Capabilities Presentation
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re you positioning your company to develop relationships with your target customers? If you had 15-30 minutes with your target customer, what would you tell them about your company to make your firm stand apart? As a small business pursuing local, state, and federal contracting opportunities, it is extremely important that you aggressively seek to establish relationships with your target customers (especially if you are 8(a) certified). By establishing relationships with your potential customers, it could lead to your firm being solicited for opportunities not posted for the general public to view, it could lead to you being notified ahead of time regarding future projects or contracts in the works, and it could help you tremendously during the proposal evaluation process (customers generally like to go with companies whom they are familiar with). Each local, state, and federal agency has a designated supplier diversity coordinator or small business specialist who serves as the initial starting point for vendors seeking to do business
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with their organization. This is the person you should reach out to via email (attaching your capabilities statement) and via phone to schedule a face to face meeting (typically 30 minutes). I want to encourage you to be persistent in your follow up until you are able to get an appointment. During this 30 minute meeting, you will have the opportunity to present your company’s capabilities, to learn about their agency’s needs, and to listen to any tips or pieces of advice that they can offer to help you do business with their organization. Since these capability briefings could lead to potential revenue for your business down the road, they can be a vital component to your company’s success. As such, I wanted to provide you with a few tips to help you maximize this opportunity: Tip #1 - Listen More Than You Talk I highly recommend that you do not spend the entire meeting with your customer doing all the talking without allowing them to get involved in the conversation. You should be able to summarize your company’s capabilities and your past performance within 5-10 minutes (beyond that you’ll lose their attention). After explaining what your firm can do, start asking your customer questions to learn about their needs related to the products/services you provide, and what upcoming projects they may have. Ask them about the organization’s
vision for the future and the direction they are heading in to discover if your firm can help them reach their strategic goals. This information could be useful in preparing future proposals. Additionally, ask the POC for tips regarding what they like to see in proposals or what pitfalls to avoid when doing business with their organization. Most importantly, ask them if they can give you the contact information of (or introduce you to) an actual end-user or customer who has a need for your products/services so that you can develop a relationship with them as well. In this regard, you will glean a tremendous amount of useful information and make a better impression if you do more listening than talking during this meeting. Tip #2 - Value Differentiators In today’s business climate, the market is saturated with a large number of competitors in your industry who offer similar products and services. In most cases, your customer has met with plenty other companies that are similar to yours. The last thing you want your customer to think about your firm is that you are just another staffing company, you are just another IT business, you are just another service provider, you are just another construction contractor, or that you are just another reseller of a manufacturer’s products. I recommend that you take the time to clearly articulate what sets you apart from your competitors, whether it be
your extensive past performance, your successful track record managing projects, your industry experience, your company’s licenses or certifications, your competitive pricing (particularly if on GSA Schedule, DIR, or TXMAS Contract), etc. This will cause you to stick out in the mind of your customer. Tip#3 - Be Professional/Display Professionalism You only get one shot at making a first impression on your customer, and one way to ensure that your first impression is a good one is by being professional (which seems to be a lost art). Be on time for your meeting (don’t keep them waiting). Dress like a professional who wants to be taken seriously. Keep your conversations on a professional level. Make sure your marketing materials and content look professional (your website, business cards, brochures, capabilities statements, etc). Tip #4 - Don’t Go Empty-Handed/Take Gifts I recommend that you do your due diligence by researching each agency’s policy regarding accepting gifts from contractors, but in most cases you can offer your customer a gift or a take-away as long as the value of the gift does not exceed $25. Offer your customer promotional items, gifts or novelties containing your company’s information for them to keep (get creative!). If possible, do some research on the person whom you are meeting with to discover their hobbies, continued next page
Feature Publication Supplement to San Antonio Construction News – August 2017
The 3 Financial Statements You Need to Keep Your Banker Happy
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hether you’re looking to get a line of credit, plan for tax payments, or simply identify strengths and weaknesses within your business, keeping clear and accurate records is vital for business owners to succeed. But managing your company’s finances can be daunting, and there are many ways your financial reporting can get on the wrong track. To make sure your finances run as smoothly and accurately as possible, it helps to simplify.
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here are three primary financial statements business owners need to focus on to ensure their companies operate effectively.
1. Cash Flow Statement
2. Balance Sheet
Balance sheets are snapshots of what you own (assets) at a particular point in time, and what you owe (liabilities). The difference between those two totals is what you have left (equity). They are another one of the most important financial reports business owners need to be approved for a line of credit. But as Quickbooks expert Margie Monroe says, you shouldn’t only be preparing these documents for times when you have to present them. You can also use balance sheets to run your business. Having an accurate balance sheet is vital because it allows business owners to reliably evaluate their company’s profitability. To quote Philip Campbell… • Your gross margin is only as accurate as your inventory • Your sales and bad debt expense are only as accurate as your net ac-
continued previous page — How to Master Your Capabilities Presentation
interests, school affiliations, etc. and tailor your gift accordingly. Tip #5 – Follow Up After the initial meeting, I recommend that you continuously follow up with the POC(s) that you met to maintain a consistent level of communication with your target customer on at least a monthly basis. This could be accomplished by setting aside 1 hour a week to send follow up emails with your capabilities statement attached to see if there are any current or upcoming projects related to the products/services offered by your company. I firmly believe in the saying “out of sight, out of mind,” and by following up with your customer via a phone call or an email on a monthly basis, it increases the likelihood that your customer will remember your company the next time an opportunity arises in your industry. I believe that by adhering to these tips, you will put your company in a good position to make a positive lasting impression on your customer, thereby helping you to develop a business relationship that could lead to potential rev-
enue. CONCLUSION By following these tips, your company will be likely to make a lasting impression on your target customer, and put you in the best position to receive the information needed in order to successfully do busness with their organization. Mr. Aaron C. Sams, PMP, MCM (Service Disabled USAF Vet.) President/Senior Consultant SAMS Contracting Consulting & Training LLC Level II Certified Acquisition Professional - Contracting Licensed Real Estate Agent (Texas) Licensed Commercial Insurance Agent (Texas) Certified Mediator (Texas) 4063 East Houston St San Antonio TX 78220 P: (210) 788-1034 E: aaron@samscct.com www.samscct.com
Feature Publication Supplement to San Antonio Construction News – August 2017
counts receivable • Your repairs and maintenance (and related expenses) are only as accurate as your property and equipment balances • Your overall operating expenses are only as accurate as your accounts payable and accrued expenses.
Ed Lette Business Bank of Texas
Though it may take some time, it’s valuable for business owners to fully understand their financial statements and become completely familiar with their balance sheet.
ferent ways to do this…
3. Income Statement
Income statements play a key role in a company’s ability to evaluate the financial health, value and growth. When effectively executed, they can also be used for financial projection, estimation of project viability and goal setting. The income statement, balance sheet and cash flow statement are generally considered the most important documents for evaluating the financial state of a company. By keeping accurate records of each of these important documents, business owners can ensure they’re in control of their company’s finances and position themselves for approval when applying for a line of credit. Additional articles can be found at the Business Bank of Texas website at the Business Resource Center. https://www.businessbankoftexas. com/business-resource-center Ed Lette is founder, president and chief executive officer of Business Bank of Texas, N.A. and serves as chairman on the company’s Board of Directors. Serving as a licensed CPA since 1983, Ed’s extensive experience in the banking industry has led him to become the founding president of four national bank charters including Business Bank of Texas, N.A., and the chief financial officer of five national banks during his 45 year career.
Income statements weigh a company’s revenue against its expenses to calculate profits. These statements can be prepared on a monthly, quarterly or annual basis to measure a company’s profits on a macro or micro level. The benefit of keeping accurate monthly income statements is that, over a period time, companies can evaluate where expenses can be reduced and identify potential opportunities to increase profit overall. Income statements are created by first measuring total sales. To do this, cash-based businesses will simply add up the total cash received during that designated time period while accrual-based companies will recognize transactions once the goods have been delivered (regardless of whether or not they’ve been paid). Businesses that fall under the latter category would also include accounts receivable as revenue. The next step is to calculate all of your business’s expenses. This means adding up all of the money spent by your business in order to produce revenue. That list of items includes: cost of goods, services general/administrative expenses, employee compensation and marketing efforts. The final step is determining your company’s profit. There are a few dif-
• Gross Profit • Operating Profit • Net Income
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Commercial Lending
Although the concept of cash flow is relatively simple (cash coming in vs. cash going out), accurately measuring cash flow can be difficult for business owners. A survey conducted by cash flow expert, Philip Campbell, found that 82% of business owners said they did not feel like they had the cash flow of their business under control. As cash flow is essentially the lifeblood of a business, this is a troubling statistic. One of the biggest challenges encountered by entrepreneurs and small business owners is that they’re forced to use tools that were designed with accountants — rather than business owners — in mind. But cash flow doesn’t have to be overly complicated. Preparing clean cash flow reports begins with being able to answer one question: What happened to the cash last month? As Philip says, answering this question should only take you 10 minutes of work, and you should be able to explain that answer in a short, 2-minute conversation. To simplify this process, we recommend spending 10 minutes
each month on a Cash Flow Focus Report to get your numbers in order. After you’ve done this for a few months, you’ll be able to spend less time worrying about the state of your cash flow and more time making informed decisions for your business. You’ll also be able to more easily prepare an accurate cash flow statement for your banker.
Small Business Certifications and Success
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ince Gabriel Lomas founded GL Contracting 17 years ago, he has had to overcome many obstacles to successfully grow his business and earn multiple certifications that have opened his company to even more growth.
Certifications and Success
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ager to extend the reach of his fellow small, diverse, and veteran business owners, Lomas shared the wisdom of his experience that extended his reach within the construction industry after starting up his own general contracting company. One of the first obstacles he faced was that the resources available to him when he was just getting GL Contracting off the ground were not very userfriendly. He couldn’t find resources where information was written plainly and clearly stating what the processes were or where to go to get your certifications. Lomas researched resources through the Small Business Administration (SBA) and the UTSA Small Business Development (SBDC) Procurement Technical Assistance Centers (PTAC). He also used online resources and his connections in the industry to find out how to get started, where to go, and where to find projects to bid. Another obstacle that arose in seeking out the answers to his questions was that he discovered that there were prerequisites to applying for those certifications. He notes that before setting out to get your business certified, you may first need to have a LLC filed, a bank account established in the company’s name, general liability insurance, as well as other elements. Yet another consideration is that these certifications and the qualifications required to pursue and obtain them cost money. You may need an administrative employee to put together the paperwork. There may be financial documentation or statements you need to have prepared. There may be fees to set these moving parts in motion, which may include paying a consultant to do some of the legwork on these certifications or to handle the certification process for you. There are some certifications that Lomas explains are easier than others to apply for yourself, but there are also more in-depth certification processes when you want to work for entities such as the federal government that can be more complicated and entail a lot more than local or state certifications. He adds that there are also some costs in getting some of those certifications. The solution to tackling this challenge is also relevant for several other obstacles the small, minority, woman, or veteran business owner may run into getting started or trying to grow and expand. Getting the finances in place to start your business, to work toward certification, and to run your business efficiently while growing manageably is the key to success in many arenas. One of those arenas is business development and marketing. When you’re self-performing all of your work, both in and out of the office, you also have to make time for business development and marketing, at least until you have the revenue to start hiring other people to help in these areas of your business. “The main thing to overcoming those obstacles would be if you have people in your office to do business development or marketing or estimating, continually researching and looking for new project opportunities,” says Lomas. “You’re going to have to continually touch base with the people in that industry, general contractors, architects, and engineers. A good tool to have is either a Blue Book
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or a Virtual Builders’ Exchange – some kind of subscription to let you know what work is being bid.” Lomas states that there are tools and opportunities out there, such as SBA programs and even luncheons where you can find out if SAWS is looking to fulfill a requirement for a percentage in a certain diversity group. He advises figuring out who you want to work for and then finding out where those entities solicit for their work. He points out that the City of San Antonio, Bexar County, and TxDOT all have their own websites for these purposes. As you’re trying to grow from working on two jobs to having a steady backlog, Lomas says, “Your general business and your daily revenue are going to be based on who knows you’re out there and that you can perform the work that you’re actually doing.” To do the necessary hiring to help you with these tasks, finding the financial balanced threshold between having people wearing many hats – or wearing many hats yourself – and hiring new people to fill more positions, cover more duties, and take on more responsibilities that come with building a healthy and steadily growing backlog of work. How quickly you can hire qualified personnel will depend upon fiscal revenue. While you may be ready to take on employees, Lomas cautions that you should weigh how payroll for those new hires will affect your business against how it will impact your financial stability. He emphasizes that once you make the commitment of bringing more people onboard, that overhead starts accumulating immediately and adds up every week and every month. “You have to get the backlog, win the work, and forecast the work that you will win to be ready and start looking to commit to new employees or new consulting to help you grow,” he explains. “Wait until you win the work or the work is contracted, and then immediately look for the people and resources you need to complete the contract.” GL partners with other contractors on some projects, either through teaming or joint ventures, such as their joint ventures on airport work with DRH Construction, in order to break through the threshold. With these partnerships, GL has been able to do more, build its equity in the company, and build its line of credit. Lomas notes that in building your line of credit, you will have more resources at your disposal to take on an estimator or a superintendent to help you get through more work. “If you’re doing it on a cash or revenue basis, it’s really hard to bridge that gap unless you have a product or service that is always backlogged, and so you know you’re going to have the daily income and revenue to support new hires, new techs, or new estimators,” he observes. “Once you have a steady, revolving workload, as you go into different types of work or larger projects, you continually have to work on that side to make sure that you’re out there, bidding, doing the work, so that can help with the next step as far as going to the next level.” Again, the key to overcoming this obstacle is building up your revenue in the beginning and creating a backlog. Lomas adds that finding the right bank that will be able to help you grow is also very important to this process. One last obstacle worth mentioning is that the regions and requirements for certain percentages of jobs allocated to different diversity groups change.
Lomas says that spending shifts, and it’s not that every diversity group gets 33 percent in allocations all year long across all projects. Right now, for instance, he observes that a lot of projects with emphasis on woman-owned participation are coming out, which isn’t a certification GL Contracting has or can attain. With that being the current direction of the work he typically pursues, Lomas and his company have to pursue more projects in the open market, which is highly competitive. When you don’t have the certifications that are the focus of jobs coming out at the time, you should consider if you can look into getting those new certifications or if you can start another teaming agreement or joint venture with a company that has those certifications. At the same time that he attributes a lot of value to being certified, Lomas also cautions that certifications do help when you are bidding to a general contractor that needs to fulfill requirements for those percentages, but a certification doesn’t guarantee you the job. “It always falls back to your self-performance capabilities, the financial capabilities of your company, and your past performance to really win you work,” he says. “I would stress that those are probably a little bit more in the forefront than your actual certifications.” Overall, Lomas says that getting your revenue up and working to build your company encompasses a broad scope of obstacles that small, diverse, and veteran-owned companies face, and his accumulated wisdom on using your revenue to grow successfully can be summed up in this piece of advice. “I would say the biggest thing is to invest in your company,” he emphasizes. “Invest in what works, and invest back into what gets you more work. If equipment gets you more work, if manpower gets you more work, if you can get into a different specialized industry or find one that you can partner into – spend money where you think it will return money for you. Don’t spend it on a nicer office. Don’t spend it on anything unless you think that thing can produce something for the company. Spend it on the things that you think will help the company work more efficiently or open up the opportunity to bid on more types of work. Make sure that the money in the business stays in the business as it’s growing. People should invest in their business, whether it’s time or money, and you’ll see the return in that.” Established in 2010 and headquartered in San Antonio, GL Contracting does government work, TxDOT airport improvements, and commercial construction and renovation. The general contractor has 8A, DBE, HUB, DIBE, MBE, ESBE, HABE, SBE, VBE, and SDVOSB certifications.
Feature Publication Supplement to San Antonio Construction News – August 2017
Lessons Learned While Overcoming Obstacles
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roudly born and raised on the south side of San Antonio, my four brothers and I (yes, I was the only girl) had our fair share of adventures of fun and survival. I’ve been “running side-by-side with the guys” since I can remember! I have approached my life and career with the same sense of adventure as I did growing up. Not sure that it’s truly untraditional, I just know what I know and I followed my own path.
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ly, I have always found it easy to connect with people as I genuinely care to learn more about them. I believe we all have something to offer and that it’s so important to share and learn from each personality. Historically and locally, many small businesses started from zero like I did. We can connect by asking “how did you do Julissa Carielo, Owner this” and “be careful with that,” Tejas Premier Building Contractor, Inc. etc. I think sharing information by giving and taking advice is really what inspires us to want to do more. That is one of the pillars of the Maestro Entrepreneur Center - a business incubator organization based on the historic west side of San Antonio. Times are changing as the younger generation is becoming stronger and more informed. They are asking more questions and easily take risks. They are more integrated than we were as kids. I believe this will definitely change our industry and our community should be more united. I know I see my kids and their friends have this sense of confidence that I did not have growing up. They truly believe they can do anything and they will.
Diversity Projects
Mark Langford Photography
A T & T Center
Mark Langford Photography
Alamodome Feature Publication Supplement to San Antonio Construction News – August 2017
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Overcoming Obstacles
hen I started working in the construction industry over 22 years ago, it was not common to see small minority firms competing as primes, or even to see women in the industry. My passion and expertise for the construction business inspired me to start Tejas Premier Building Contractor, Inc. 11 years ago. To this day, I love the industry and the people we work with take pride in what we build. Being a trailblazer has its risks and yes it’s difficult, but the passion for my company drives me to find innovative ways to succeed. The biggest challenge has been managing people and developing processes. Tejas Premier has been growing rapidly and at times it feels like we don’t have time to catch up. It’s not an easy task, but I embrace it because I believe strongly that our people are what make Tejas Premier great. When a new employee comes on board, it’s very important to me to make them part of the Tejas Premier Family ASAP. Employees need to know they are part of our success. No, we are not perfect and we do not know everything, but we continue to refine and tweak processes until we get it right! At Tejas Premier, improving every day is part of our mission. Overcoming obstacles comes easier when you are finding YOUR passion and doing what you love. It also makes it easier to stick to the plan. Finding innovative ways to use technology, streamlined processes and clear strategic goals will forge a path toward success in due time. Building alliances with other small minority firms that share the same vision is key to positive growth and more doors opening. The stronger you can build your network, the stronger our business community will thrive. Fortunate-
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The City of San Antonio Empowering Small Businesses One Contract at a Time
he City of San Antonio is dedicated and committed to empowering local small, minority and women-owned businesses (S/M/WBEs) through a variety of programs that help grow their business. One of the City’s most significant programs to empower S/M/WBEs is the Small Business Economic Development Advocacy (SBEDA) program, which leverages the City’s purchasing power and offers incentives to promote the utilization of S/M/WBEs on City contracts. To accomplish its objective, the SBEDA program requires individual review of City contracts to determine the most appropriate tools to promote S/M/
WBE participation on City contracts. The tools range from evaluation preference points to make S/M/WBE prime respondents more competitive when responding to solicitations, as well as subcontracting provisions for S/M/WBEs in which prime respondents are required to meet. Each year, the City of San Antonio undertakes numerous construction projects throughout the City and these projects present valuable opportunities for local S/M/WBEs. Recently, the 2017 2022 Bond Program was approved by voters which will lead to 180 projects worth approximately $850 million over the next five years.
Empowering Small Business
Business Empowerment Plan 2016 graduates pose with City and Alamo Colleges staff after their graduation. The impact of the SBEDA program posal development, managing your San has been successful as demonstrated in Antonio Electronic Procurement System the chart below, which shows the dollars Profile (SAePS), and SBEDA Program respent by the City of San Antonio, overall quirements. Last year, more than 300 and to S/M/WBEs, within the construc- vendors attended these sessions and had the opportunity to meet with City detion industry. In addition to the SBEDA program, partment representatives to receive onethe City administers the Business Em- on-one assistance as they navigated powerment (BE) Plan in partnership with through the City’s procurement process. Alamo Colleges which includes the Furthermore, in keeping with the Bonding Assistance and Mentor-Protégé City’s commitment to strengthening the Programs. These capacity building pro- small business community, several regrams begin with a series of courses that sources are available to assist entrepreparticipants complete called the Small neurs at any stage of their business deBusiness Boot Camp. Depending on the velopment. program, the courses include How to The City’s Small Business Liaison is Write a Business Plan, Managing Your Fi- the first stop for business assistance and nancials, Access to Credit, and Market- serves as an ongoing resource for busiing. Once completed, the participants nesses that are growing or may need inare either paired with a mentor for two formation regarding permitting, licensing years or become eligible for a letter of and regulatory issues. The Small Busicredit to enhance their bonding capacity. ness Liaison is conveniently located in Since its inception in the spring of side Launch SA, a one-stop shop located 2012, both the Bonding Assistance and in San Antonio’s Central Library where Mentor-Protégé Programs have assisted entrepreneurs, startups, and small busimore than 150 S/M/WBEs. In addition, ness owners (new or established) can get over 45 small businesses have graduated personal support, information, resourcfrom the BE Plan. Graduates of the pro- es, market data and guidance to start and grams have collectively reported annual maintain their business. Through a partrevenues of $61 million, representing a nership with the City and LiftFund, 24 percent increase from their reported Launch SA has also developed programming to help entrepreneurs launch their revenues when entering the BE Plan. To increase awareness of City con- ideas or help small business owners tract opportunities and S/M/WBE pro- overcome challenges and build their cagrams, the City hosts “Vendor Orienta- pacity. tions” to help vendors registered in the Any business owner, either estabCity’s Central Vendor Registry (CVR) lished or in their beginning phases can learn valuable information about the visit www.sanantonio.gov/sbo or contact bidding process. Representatives from a the Small Business Office at (210) 207variety of City departments, including 3922 for more information on the City’s Aviation, Economic Development, Fi- programs, opportunities, and resources nance, and Transportation and Capital that are listed throughout this article. We Improvements, cover topics such as pro- look forward to hearing from you!
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Feature Publication Supplement to San Antonio Construction News – August 2017
Insurance for Small Businesses and Contractors The entire responsibility for a construction project belongs to the Property Owner. This fact influences the insurance that general contractors buy and the insurance general contractors require their subcontractors to carry.
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he owner carries insurance protecting him from the existence of the project. He requires insurance of the general contractor that will adequately protect the owner from his responsibility for the entire project. The general contractor carries insurance protecting him from the exposures of the work he self-performs and from the exposure of supervising subcontractors. The general contractor has insurance for his own actions and for the supervision of others, which provides protection for all interests. Complications occur when one or more of the parties avoid responsibility by shifting liability or failing to protect themselves.
Builders Risk These policies are not standard among companies, however, most have similar provisions: The policy covers the interests of the owner, general contractor and all subcontractors and suppliers. The policy covers all materials and suppliers incorporated into the project or consumed in construction. The insurance applies at the project site, at temporary storage locations and while in transit. Storage and transit coverage limits are lower than applicable to the building. Commercial General Liability Provisions of this insurance that will be helpful for you to understand are: The policy insures against legal liability for bodily injury, property damage and personal injury (libel, slander, false arrest and wrongful eviction or entry). The insurance applies to liability arising from: Ownership or use of premises Operations in progress Completed operations Supervision of independent con tractors Liability of others assumed under insured contracts Automobile Liability Protects the insured against loss if held legally liable for bodily injury to
Workers’ Compensation Provides statutory coverage for the Workers’ Compensation Act. The policy pays benefits according to the Workers’ Compensation Statute. Another part of the policy covers employers liability (a claim that is outside the Act such as willful or gross negligence). The limits required are for accident and disease under the employers liability portion. Excess or Umbrella Liability This is liability insurance with the same or similar terms as Commercial General Liability, Automobile Liability and the employers liability portion of Workers’ Compensation. The policy functions to raise liability limits above the underlying policies. Umbrella limits are in $1,000,000 increments. They will meet a requirement for limits higher than the underlying policies provide. The named insured is the person or organization shown as such in the policy, which may be either a property owner or a general contractor. The designated contractor is the person or organization that has purchased the coverage to protect the named insured. Priorities of Standard Requirements Remember from the introduction that insurance requirements exist to assure everyone protects against his own negligence and negligent supervision of others. ADDITIONAL INSURED: An additional insured endorsement has two problems in meeting the goals: Both the subcontractor’s policy and the general contractor’s policy have other insurance provisions that prorate the policies in losses involving the additional insured. Losses involving both the named insured and the additional insured are subject to one policy limit, reducing the amount potentially available to each. INDEMNITY AGREEMENTS: Subcontractors who read these agreements often oppose indemnifying for sole negligence. Their trade groups advise against it and courts have been very strict in approving such agreements. WAIVERS OF SUBROGATION: Subrogation refers to an insurance company acting to recover a paid loss from a third party. The waiver is used to isolate the general contractor’s program from losses covered by a
Feature Publication Supplement to San Antonio Construction News – August 2017
subcontractor’s policy. The waiver removes the general contractor from responsibility for his own actions. Be wary of these clauses: The subcontractor agrees to defend, indemnify and hold harmless the general contractor and owner from and against any claim, cost, expense or liability attributable to bodily injury, sickness, disease or death, or damage, loss or destruction of property, caused by, arising out of, resulting from or occurring in connection with the performance of the work by the subcontractor, whether or not caused in part by the active or passive negligence or other fault of a party indemnified hereunder. The subcontractor assumes full responsibility for any and all damages, death, or injury of any kind, including any injury or damage to all persons, whether employees or otherwise, and property arising out of or in any way connected with its work and shall to the fullest extent permitted by law defend, indemnify and hold harmless owner and contractor from and against any and all claims, losses, damages, legal and otherwise arising out of or in any way connected with subcontractor’s work. The subcontractor agrees to assume the entire responsibility and liability, to the fullest extent permitted by law, for all damages or injury arising out of , resulting from or in any manner connected with, the execution of the work by the subcontractor and the subcontractor agrees to indemnify and save harmless the contractor from all such claims. The subcontractor releases the general contractor from, agreed that the general contractor shall not be liable for, and agrees to hold the general contractor harmless against any loss (including attorneys’ fee) or damage to property, or any injury or
Tom Hewitt, BDI Insurance
death of any person that may be occasioned by any cause whatsoever pertaining to the project or subcontractor’s work. In the building and subcontract negotiation process, subcontractors should strive to limit the indemnification obligations in the following ways: The scope should correspond to available contractual liability insurance coverages by encompassing only claims for personal injury, death and property damage arising out of negligent acts or omissions of the subcontractor or parties for which acts the subcontractor is responsible. The indemnification language should not expressly or by implication require the subcontractor to indemnify another party for the consequences of that other party’s sole negligence. The subcontract indemnification provision should be modified so that liability is predicated upon the comparative fault, and only proportionate to the relative fault attributable to the subcontractor, by including qualifying language such as: “provided, however, that such duty to indemnify shall only be to the extent caused in whole or in party by the negligent acts the subcontractor may be liable.” The subcontractor should consult his attorney before accepting any liability for another’s wrongful or negligent acts.
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Insurance
Types of Project Insurance: The responsibilities discussed in the introduction result in the following types of insurance required on a construction project: Builders Risk Commercial General Liability Automobile Liability Workers’ Compensation Excess or Umbrella Liability
others or for damages to property of others caused by an accident and arising out of the ownership, maintenance or use of an automobile.