Houston Construction News February 2018

Covering the Industry’s News

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Celebrating five

Business as youth-ual

Locke Solution team members gather together at the ground breaking of their recently completed new facility.

David Esslinger and the Epoch team members.

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or as long as Asher Kazmann, president of Locke Solutions can recall, growing up he always wanted to be a precaster; that, or a professional baseball player.

In January 2013, he made one of his dreams come true with a group of five employees designing and manufacturing precast concrete structures primarily for use with underground utilities such as power lines, communication lines, storm water drainage and cleaning systems.

They produced their first concrete structure the 23rd of that month.

“I’ve always considered my initial team of five employees to be part of our founding group. In this business, the most important piece to having success

is the integrity and quality of the people,” says Kazmann.

Starting out five employees strong and by the end of the first month, they had grown to seven strong and for the first few years grew on an average of about one employee per month. Today, Locke Solutions has 44 employees throughout the company operations.

The company has gone through many changes over the last five years, much of it due to the increase in volume.

They’ve had equipment upgrades from adding their own onsite concrete batch plant to continually upgrading and adding to their overhead crane capacity in their manufacturing area. As they’ve incontinued on Page 13

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outh is not always wasted on the young. Only four short years after David Esslinger earned his Business Administration degree at A&M in 2002, he started his own general contracting business.

“After college, I took a position in New Orleans and was offered an opportunity to come back home to Texas in Houston and I jumped at the opportunity,” Esslinger says. “In 2006, through a multitude of learning experiences, I decided to go out on my own and started Epoch Construction. It was something I had long wanted to do without any partnership or hinges to hold me back.

Obviously, as everybody knows, when you’re young it’s easier to take those leaps of faith and persevere through the

struggles the first several years of doing everything as you grow.”

Esslinger says he started the business as a “one-man show” out of his onebedroom apartment and grew the business steadily at about 20 percent annual growth. Twelve years later, Esslinger oversees 23 employees at Epoch’s Houston home office as well as a new Austin office, which opened early 2017. While he has no immediate plans to expand, he’s not ruling out future offices in Dallas and Corpus Christi.

“Right now, we build in Dallas, Houston, San Antonio and Austin; those are our four major markets,” he says. “We do everything from high-end restaurants to private multi-story hospitals.” continued on Page 13

Concrete design

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n recent industrial construction, Third Coast General Contractors, LLC completed the project called Whiteoak Industrial Park. Project manager and superintendent Anthony Sarao and engineer Randy Rutherford with Dev-Tex Engineering, L.P, managed the project.

Owner of Whiteoak Industrial Park is Steve Adkisson. The property is outside Houston city limits, located on Fairbanks N. Houston and Warren Street, north of W. Little York between Hwy 290 and Beltway 8. The industrial park provides great accessibility to freeways in Northwest Houston. Whiteoak Industrial Park has already sold and leased buildings. Houston demands for warehouses have increased with population growth.

Taking a deeper look at the property, the new construction is set at 182,950-sf of dock high distribution buildings. There are eight buildings between 12,500 –

40,000-sf. It includes pre-engineered metal structures with tilt-wall façade, 33’-0 eve height with standing seam roof systems, metal building canopies with soffits and 135,00-sf of pavement. The main materials were concrete tilt wall and conventional structural steel. The total cost was $8.6 million.

This projects uniqueness came from having installed a 250 horsepower electric fire pump that serves all eight buildings. The pump provides ESFR protection. Sarao says, the developer wanted to provide the ESFR sprinkler systems for all eight individual buildings to lower the cost by providing one fire pump to service all eight buildings, instead of putting a fire pump in all eight.”

The time span of the project was only eight months. As Third Coast puts it, “It was a quick and easy project.” The project began in March and finished in Aerial view of Whiteoak Industrial Park.

continued on Page 13

Page 2

Houston Construction News • FEB 2018

Remember when

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Internal compass

Leo Castillo (middle) and the Stillo Construction crew.

n September 2008, hurricane Ike hit the Houston area. At that time Stillo Construction became fully operational and opened their doors. No, Ike didn’t blow them in or tear them down. “It was about three or four weeks before hurricane Ike that we opened our doors. No one knew it was coming, but it was a pretty hard time to start the business.”

President of Stillo Construction, Leo Castillo, says not to bite off more than what you can chew.

Well the weather conditions sure didn’t stop Castillo from hitting the company’s 10-year anniversary this year. The company plans to celebrate with a barbeque for the families of all the employees. Mr. Castillo, the man with the plan has 47 employees and one location. They are no strangers to a company barbeque. The company’s office manager Lily and her father both work at Stillo. Castillo says that Lily’s father is in charge of barbequing when the time calls for a company meal.

The service provided is stucco repairs and new construction stucco. They also know how to win on the field; I’m talking about the soccer field. Stillo Construction sponsors a soccer team with 12

crew members. Recently the soccer tournament the team played in, won. Hooray!

In the office sits the big trophy.

Stillo is a family owned company, so who is related to Mr. Castillo at work? He says his brother works with him and his wife (Mrs. Castillo) used too. Her passion is baking and now owns her own baking business. How sweet.

Mr. Castillo shares a joke that was played on one of his project managers. It was during a time that they outgrew one of their offices. Lily was put into another office. They told the project manager that Lily had been fired. “It was very funny because she was no longer at the office since we moved offices.” That was one joke; another involved his puppy named Remy. Mr. Castillo says he brought him in one day. “He was roaming around everywhere and the employees were all after him. Everyone ended up bumping into each other.” Remy is no longer a puppy, but a dog that has been with Mr. Castillo for 15 years. Yes, he still brings his dog to work. The employees no longer chase after him.

Stillo Construction is a stucco company in Houston. –lv

Things you didn’t know . . . about Valentines Day 220,000 is the average number of wedding proposals on Valentine’s Day each year.

189 million stems of roses are sold in the U.S. on this day.

Women purchase approximately 85 percent of all gifts on this holiday.

Teachers will receive the most Valentine’s Day cards, followed by children, mothers, wives, sweethearts and pets.

15 percent of U.S. women send themselves flowers on Valentine’s Day.

BC Commercial’s Houston Team L-R: Jason Reugeot, superintendent; Jana Shaw, executive assistant; and Joseph Shaw, general manager.

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hanging directions is nothing new for Robert Beach who, with his wife Michelle, helms BC Commercial.

Robert began his construction career in his 20s remodeling homes. To subsidize his income, he worked for his dad’s plumbing business, where he was introduced to commercial clients eager to utilize his remodeling expertise. He switched to commercial work and founded his company (formerly Beach Construction) in 1999 in Dallas.

“My father’s largest customer at the time was the University of Texas Southwestern Medical Center in Dallas,” Beach remembers. “I jumped right in with the big boys! It was very exciting. It was something that I had wanted to do that I really visualized doing, although I had assumed I was going to be moving into a career as a homebuilder. However, I got into the commercial construction realm, and found a real fit with the construction department and the architects and engineers there.”

Robert and Michelle continued to grow their company for nearly two decades, but recently realized that the name “Beach Construction” was doing their commercial construction and design-build company no favors.

“As we got into the construction work, we got a lot of calls from people asking us if we did beach construction – like bringing in sand,” Robert says. “We would always have to explain!”

The Beaches consulted a media agency about marketing possibilities.

Their consensus was that the name “Beach Construction” was too confusing; the decision was made to rebrand the business as BC Commercial.

“We’re really glad we did, especially since in the last year we opened an office in Clear Lake and we are working in the Houston/Galveston area,” he says. “It was really good timing; we were able to attract talent to run that office, someone we have worked with the entire time our business has been open. It makes for a good fit.”

In the year since the office opened, BC Commercial has already undertaken notable projects in the area.

“We’re getting involved and doing some cool work [in the Galveston area],” he says. “We’re doing some historical projects down in Galveston in the Strand Historic District. There are some old buildings there that have a lot of history with neat stories behind them.”

As BC Commercial grows, Robert says more changes are to come.

“We have primarily been a healthcare contractor and have worked in some of the biggest hospitals, and have also done a lot of higher education,” he says. “What we want to do, and what is starting to come to fruition, is larger scale groundup projects. We’re sort of seguewaying from being a renovation contractor and have attracted some good talent with specialties in ground-up work.”

In a few years, the couple would like to change directions again by relocating and eventually retiring on Galveston Island, where they were born and raised.

“My son graduated from college and my daughter is in college,” he says. “We would like to move to Galveston Island and work back up to [North Texas] just like we have been in North Texas working back down south,” Robert says.

HUB- and MWBE-certified general contractor BC Commercial has offices in Clear Lake/Houston and Dallas. –mjm

Houston Construction News • FEB 2018

Page 3

Leadership Christmas

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t was a festive mood filled with holiday cheer Dec. 4 at the Houstonian’s historic Manor House, which was for the for Associated General Contractor’s (AGC) leaders to celebrate the year’s achievements.

Current board members as well as other AGC leaders from the association’s various committees celebrated the year’s milestones. The event also served to recognize Don Jones, W.S. Bellows Construction Corp. as a new Honorary Life Member. -cmw

L-R: Russell Jones and Don Jones, W.S. Bellows Construction Corp.

L-R: Tad Lewis, McCarthy Building Companies; Tadd Tellepsen, Tellepsen Industrial; and Phil Nevlud, Marek Brothers Systems Inc.

GOOD NEWS!

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Call us for a Company Profile (210) 308-5800

L-R: Stephen Ellsworth, R.W. Baird & Co.; Ada Lam, AGC Houston; Bob Bacon, TAS Commercial Concrete; and Murray Neal, MLN Company

Page 4

Houston Construction News • FEB 2018

BONDING Tax reform

How much does a contract bond cost?

Dustin R. Michalak, CPA, CVA Managing Shareholder Barrett & Co., P.C. San Antonio, TX

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he passing of The Tax Cuts and Jobs Act is a historic accomplishment by lawmakers. The act, seemingly, will try to spur our nation’s economic growth and job creation by reducing the tax burden on all job-creating businesses. So what exactly does this mean for contractors? How will the new laws affect the way contractors run their businesses? How much TAX SAVINGS should contractors expect?

The most significant and most publicized change is the decrease in tax rates for both businesses and individuals. The focus for this article will stay within the business changes. For C-Corporations, tax years beginning after December 31, 2017, a flat tax rate of 21% will be applied to taxable income. This is a significant change from 2017’s maximum tax rate of 38%. Though this makes C-Corporation an attractive entity tax selection, there is still the burden of double taxation upon dividends to the corporation’s shareholders. The typical dividend rate will range from 15% to 23.8% depending on the shareholder’s individual earnings. Here is a simplified example: A C-Corporation with taxable income of $100 would pay $21 in taxes. If the corporation pays a dividend to a high-income shareholder of the remaining $79, the shareholder will pay an additional $18.80 in taxes. Effectively paying $39.80 ($21 + $18.80) in taxes at a rate of $39.8%.

For pass-through entities, things get a bit more complicated, although beneficial for tax purposes. What type of businesses are qualified as pass-through entities? These are Partnerships, S Corporations, LLCs taxed as partnerships, and sole proprietorships. Under the new law, beginning in 2018, pass-through entities may qualify for a deduction up to 20% of qualified domestic business income subject to certain limitations based on taxable income. The limitations are phased in for taxpayers with taxable income of $315,000 married filing jointly (“MFJ”) and $157,000 for all other filers. Qualified business income (“QBI”) is defined in section 199A(c) as ordinary income less ordinary deductions from a qualified trade or business. Qualified business income does not include capital gains and losses, dividend, or interest income. Any potential deduction is taken at the taxpayer level.

Here is a simplified example for a taxpayer who is under the phase out:

A high-income taxpayer with $100 of qualifying business income would get a deduction of $20. The remaining $80 of income would be taxed at 37% (highest individual rate). The taxpayer would owe $29.60. Thus, the taxpayer would have an

effective rate of 29.6%.

The calculation of the pass-through deduction for taxpayers above the taxable income threshold is more complicated. In this case the 20% deduction is further limited based on the W-2 wages and capital of the business. The deduction is limited to the greater of the following: (a) 50% of the wages paid by the business, or (b) 25% of the wages paid by the business, plus 2.5% of the unadjusted basis of all tangible depreciable property of the business.

What type of entity should my business be and how should the earnings be taxed? Unfortunately for contractors, there is not a clear cut answer. It will all depend on the business as well as the owner’s investment objectives, bonding requirements and other considerations.

This question will need to be answered on a case by case basis.

Another hot topic item for contractors is depreciation and more specifically, Section 179 expense and Bonus Depreciation. The depreciation changes in the new law can add huge tax savings, especially for contractors with extensive equipment and capital expenditure requirements. For tax years beginning after December 31, 2017, taxpayers may expense up to $1 million under Section 179, and the phase out threshold amount is increased to $2.5 million. These amounts will be indexed for inflation in tax years beginning after 2018. In regards to Bonus Depreciation, for qualified property placed in service between September 27, 2017, and January 1, 2023, taxpayers are allowed a 100% Bonus Depreciation deduction on both new and used qualified property.

The new tax reform bill includes other changes that effect contractors such as, accounting for long-term contracts, reporting under the cash method, nondeductible entertainment, deductibility of interest expenses and many other changes. It’s extremely important that contractors contact their tax advisors now to understand the effects this tax reform has on their businesses and evaluate the company’s entity selection to take advantage of the changes.

Construction News ON LOCATION

You’ll be glad we Met!

Eric Lesch, Principal/Bond Producer PCL Contract Bonding Agency Irving, TX

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frequently get asked to provide estimates for the cost of a bond as if I have a slab of meat and the buyer only needs one pound. Sure thing, I’ll just shave off a little and there you go! Of course, it isn’t nearly that simple and as my dad always says, “It depends.” The most common factors that determine rate are the type of work, time until project completion, length of warranty, where the project is located, whether design is included and the financial condition of the contractor. For this article, we will focus on performance and payment bonds for projects located in Texas.

In Texas, like other states, each surety above the base rate. These are most comfiles rates with the Department of Insur- monly used when a company’s financial ance. Multiple rates are filed, but unlike condition is poor or underwriting inforother states, through some invisible mation is incomplete. agreement, the sureties have all settled While you could use an elaborate on using a similar standard set of rates spreadsheet, we supply them to clients that are based on the type of work per- when asked, there are many details that formed. This leads to many large Texas need to be accounted for and mistakes contractors receiving the exact same rate are easily made. It is always safer to ask as their much smaller competitors, an en- your agent for an estimate, but make sure vironment where competition on rate is when you do, you include all the details. not common and very long-term surety Many contractors forego a complicated relationships. spreadsheet and instead use a simple cal Nearly all construction falls within culation that uses only a flat percentage two rate classes. The class A rate, starting or a couple tiers so that missing anything at 1.5%, is used for trades such as roofing, will still result in an overcalculation of preglazing and millwork, while the class B mium and nothing lost. rate, starting at 2.5%, is used for the ma- It is important that all change orders jority of building trades like mechanical, have bond premium added. Instead of electrical, plumbing, underground utili- trying to calculate a new bond premium ties, drywall, painting and concrete. As for the project and then taking the differyou can see from the trades and their ence, many contractors also have a derates, they don’t always match up with fault percentage to use for all change orwhat we consider the highest risk on a ders so that mistakes are avoided, and project. For example, painting and dry- even though deductive change orders wall use a significantly higher rate than result in a premium refund, I advise conglazing and roofing. In cases where mul- tractors to never include that refund since tiple types of work are present, for exam- it is likely to be over-estimated. ple a GC with multiple subcontractors, Included in the cost of a performance the rate used is typically the highest of bond is a payment bond and one year of the trades used. warranty. An extra year of warranty starts If you have design in your contract at only 0.25% which is a bargain if you ask then you can push aside those rates be- me. For some trades, like those concerncause there is one special rate for things ing building envelope, it seems like an obthat are considered hazardous. This rate vious choice to ask for the second year of starts at 2.5%, like class B, but falls off warranty if you already paying for a bond. much more gradually at each tier. You Can bond premium be marked up? It should always try to separate design and depends, but usually. You spend lots of build into their own contracts and only time building a strong and dependable bond the construction portion. This pro- surety relationship and money on CPA fiduces a cost savings to the owner that is nancials and other reports that the surety typically accepted at your benefit with requires. Another reason to markup your surety happier too. bonds is when you want to discourage a As the contract amount grows, the request for bonding. By making the rate decreases in tiers that are applied to bonds appear very expensive, the bondportions of the contract value. As an ex- ing requirement may be waived. ample, the first three tiers are shown here If a contractor bonds subcontractors with rates. then does that reduce the amount or cost As the contract amount grows, it is of their bonds? No. separated into six tiers: $0-100k, 100k- Is the bond cost reduced if it is for a 500k, 500k-2.5m, 2.5m-5m, 5m-7.5m, and percentage of a contract? No, except for over 7.5m, with each tier getting a lesser maintenance bonds which have their rate. For example, for class B the rate ap- own complex rate calculations. plied to each tier is 2.5%, 1.5%, 1.0%, There are many things involved in 0.75%, 0.7% and 0.65%, respectively. these calculations and your agent doesn’t

Some surety companies have addi- expect you to be an expert so give them a tional rates allowing them to charge call when you need help.

Houston

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Family owned, full service plumbing company, Met Plumbing, always at your service.

L-R: Christia Weeks, Jerry Reyna and Owner Marion Tucker. -bd

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Houston Construction News • FEB 2018

Page 5

Carbon monoxide poisoning

Four common construction law misconceptions

Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX

West W. Winter, Attorney The Winter Law Firm, PLLC San Antonio, TX

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hroughout two decades of law practice, I have heard a number of recurring legal misconceptions from clients. Four of the more common construction law misconceptions include: Sending a lien notice will harm the working relationship When payment has not been received, subcontractors are sometimes reluctant to send proper pre-lien notices because of a perception that doing so will irreparably damage their relationship with the upstream parties. It is only natural to fear upsetting the apple cart.

However, as the mechanic’s and materialman’s lien is one of the most powerful weapons for ensuring payment, failing to properly and timely send statutorily required lien notices will have adverse consequences. Whatever the reason for non-payment, a pre-lien notice serves many valuable purposes. Chief among these is trapping funds in the hands of the project’s owner. This is critical because an owner’s liability to a lien claimant is limited on commercial projects to the statutory retainage and any funds which the owner should have retained upon receipt of a proper pre-lien notice.

Furthermore, general contractors and owners are typically sophisticated parties who understand the importance of securing one’s right to payment.

I filed my lien, I just have to wait to get paid While it is essential to timely and properly perfect your mechanic’s and materialman’s lien or payment bond claim, there are also strict statutory deadlines within which you must actually file suit to foreclose or enforce your lien or bond claim. Failing to file suit within these prescribed deadlines will likely result in the loss or extinguishment of your lien or payment bond rights. Suit must be brought to foreclose a lien within the limitations periods mandated by Section 53.158 of the Texas Property Code (typically one or two years, depending on the type of project) or the lien will be extinguished.

A suit on a payment bond on a state public project may not be brought by a payment bond beneficiary after the first anniversary of the date notice for a claim is mailed under Chapter 2253 of the Texas Government Code.

I missed the lien deadlines, I have no rights

Even if you miss statutory lien dead-

lines, there are many avenues of potential recovery for nonpayment. In a sham situation described by Section 53.026 of the Texas Property Code, you may still have lien rights, and if you contract directly with the project’s owner, you may have constitutional lien rights which exist independently of any notice or recording requirements. In the absence of lien rights, you likely have available causes of action for nonpayment which, depending on the specific circumstances involved, may include breach of contract, quantum meruit, suit on sworn account, Prompt Pay Act claims pursuant to Chapter 28 of the Texas Property Code, and Texas construction trust fund claims as codified in Chapter 162 of the Texas Property Code. Many of these claims also provide for the recovery of attorney’s fees and expenses.

I have Insurance, so I am covered CGL insurance policies are loaded with exclusions and exceptions which often come into play in construction cases. In construction defect cases, policy exclusions such as the “your work” exclusion will often operate to deny you the very defense and/or coverage which you thought you were getting. These exclusions have frequently been the basis for denial of defense and coverage by insurance carriers and as a result, the subject of much litigation in recent years. Work with your attorneys and insurance agents to understand your coverages and the impact of applicable exclusions. If you are denied a defense and/or coverage, don’t give up as there may be viable arguments which can be asserted on your behalf in this evolving area of the law to obtain a defense and/ or coverage.

West W. Winter, a LEED Green Associate, serves on the board of the Construction Law Section of the San Antonio Bar Association and has been listed as one of the Best Lawyers in San Antonio for Construction Litigation. The Winter Law Firm represents general contractors, subcontractors, and suppliers, in all phases of the construction process, from contract formation through dispute resolution, litigation, and collection. West may be reached via email: west@thewinterlawfirm.com.

Good tidings to all

Holiday cheer and good camaraderie was in the air for the Southeast Texas chapter of The National Electrical Contractors Association (NECA) who held their annual meeting and Christimas party Dec. 2 at the San Luis Resort in Galveston. NECA Executive Director Allen Grainey presents Don Rabel, Mid-West Electric a plaque of appreciation. -cmw

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arbon monoxide (CO) is a colorless, odorless, toxic gas which interferes with the oxygen-carrying capacity of blood. CO is non-irritating and can overcome persons without warning. Many people die from CO poisoning, usually while using gasoline powered tools and generators in buildings or semi-enclosed spaces without adequate ventilation.

Effects of Carbon Monoxide Poisoning • Severe carbon monoxide poisoning causes neurological damage, illness, coma and death.

• Headaches, dizziness and drowsiness.

• Nausea, vomiting, tightness across the chest.

Sudden chest pain may occur in people with angina. During prolonged or high exposures, symptoms may worsen and include vomiting, confusion, and collapse in addition to loss of consciousness and muscle weakness. Symptoms vary widely from person to person. CO poisoning may occur sooner in those most susceptible: young children, elderly people, people with lung or heart disease, people at high altitudes, or those who already have elevated CO blood levels, such as smokers. Also, CO poisoning poses a special risk to fetuses.

CO poisoning can be reversed if caught in time. But even if you recover, acute poisoning may result in permanent damage to the parts of your body that require a lot of oxygen such as the heart and brain.

Significant reproductive risk is also linked to CO. Some Sources of Exposure • Portable generators/generators in buildings.

• Concrete cutting saws, compressors.

• Power trowels, floor buffers, space heaters.

• Welding, gasoline powered pumps.

Preventing CO Exposure • Never use a generator indoors or in en-

closed or partially enclosed spaces such as garages, crawl spaces, and basements.

Opening windows and doors in an enclosed space may prevent CO buildup.

• Make sure the generator has 3-4 feet of clear space on all sides and above it to ensure adequate ventilation.

• Do not use a generator outdoors if placed near doors, windows or vents which could allow CO to enter and build up in occupied spaces.

• When using space heaters and stoves ensure that they are in good working order to reduce CO buildup, and never use in enclosed spaces or indoors.

• Consider using tools powered by electricity or compressed air, if available.

• If you experience symptoms of CO poisoning get to fresh air right away and seek immediate medical attention.

What can you do if you suspect someone has been poisoned?

When you suspect CO poisoning, promptly taking the following actions can save lives: • Move the victim immediately to fresh air in an open area.

• Call 911 or another local emergency number for medical attention or assistance.

• Administer 100-percent oxygen using a tight-fitting mask if the victim is breathing.

• Administer cardiopulmonary resuscitation if the victim has stopped breathing. natarajan.joann@dol.gov 512-374-0271 x232

Industry FOLKS Jeff Wilpers Mechanic Painters Hardware Corp Houston, TX

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veryone has one at work. Some call them jokesters and some call them clowns. At Painters Hardware Corp they call him Jeff Wilpers. He’s the mechanic and has been with the company for the last two years.

He likes to laugh and keep the mood up at work. Since it’s just him and his boss working together, things can get tricky. “I try to play jokes daily, but sometimes it doesn’t work out.” Of course, it’s all in good fun.

Wilpers first worked with the company in 2006. He left on good terms and started working in the oil field for 8 years. He was laid off in 2008 and again in 2015. That’s when it was time for a blast from the past. Wilpers started working with Painters Hardware again in 2015. Today he enjoys the challenges he faces on a daily basis.

“You always get a different problem with a machine. Sometimes you see the same things over and over again, but for the most part its something new everyday.” No joke there.

Wilpers was born in St. Louis and

then moved to Chicago for five years.

He’s been in Houston since 1978. Then in Tennessee he has his two daughters, one who is expecting and will make for Wilper’s third grandchild. Last year he tried to go up there but him and his partner ended up in Miami for Thanksgiving. “My girlfriend is from Puerto Rico. Her mother came from Puerto Rico because it’s a bad deal over there, so we went down there to meet her family.”

When there are no machines at work to fix, he is riding his softail motorcycle when the weather permits.

Another hobby of his is flying RC airplanes whenever it’s not too windy. “I like to play golf when I can. I fish once in a while. Really anything outdoors.”

Wilpers can wear many hats and a helmet during his free time.

The construction industry is where he believes he’ll stay. Yes, this joker has found his audience. – lv

Page 6

Houston Construction News • FEB 2018

started Wyatt Management in 1998.

What were those first years of business ownership like?

Tim: Scary. I mortgaged my home to get the company off the ground. Having little access to capital meant that if we didn’t get paid on time, I wouldn’t make payroll. It’s still scary knowing other people’s livelihoods are in our hands.

Jeannette Wyatt Owner

Tim Wyatt

President Wyatt Management The Woodlands, TX

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hen Jeannette and Tim Wyatt met, it was the start of something great, both in business and romance. With Tim’s construction background and Jeannette’s marketing and business development experience, the couple is making their mark on construction in Texas and beyond.

Please share a little about your backgrounds and how you began your careers.

Tim: Growing up, my father was an orthopedic surgeon for the Airforce and he wanted me to go into the medical field, but that never appealed to me. While he wanted to fix things, I wanted to build things so I attended the University of Wisconsin and earned my degree in construction management. Following graduation, I worked as a project manager for a large contractor based in Minneapolis that specialized in retail construction. In 1982, they moved me to Houston to open a Texas office.

Jeannette: I studied marketing communications at UCLA and earned my masters from USC.

After grad school, I took a job working for a woman-owned business that produced multimedia-training programs for leading companies such as Lexus, Citibank, US Airways and FedEx. As the director of marketing, I had the opportunity to perform prospecting and business development activities with the owner, which gave me tremendous insight into the entrepreneurial side of the business. As the company grew, I got a firsthand look at what it takes to run and grow a business.

Since then, I have done marketing and business development for companies in a variety of industries and sizes, from small and medium to Fortune 25.

What made you decide to start Wyatt Management, Tim? Working for a large construction company was a great learning experience for me, but when they moved me to Texas to open their Houston office, I discovered I really enjoyed being in charge of my own destiny. The idea of building my own company was very appealing to me so I moved my family back to Minnesota and

In 2008, you relocated Wyatt Management to The Woodlands. What was your motivation to move?

Tim: Over the course of time, Wyatt Management started doing more and more work in Texas. And while 2008 was a good year, when 2009 came, the country went into a recession. Construction companies took a major hit, us included; we did three little asphalt-patching jobs that year. I was forced to close the Minnesota office and lay off all my staff, except for my office manager. While I moved to Texas to see if I could revive the business she continued to work out of her home in Minnesota. Then I met a woman named Jeannette.

And how did you meet?

Jeannette: I was living in Pennsylvania running the regional marketing division of a company that offered me a national position in 2008. The role required that I move to Houston. My first night out on the town with a new friend and colleague took us to a local restaurant in Marketplace.

Tim: I was sitting at the bar having dinner with a client…

Jeannette: The minute I walked in, I saw Tim and decided I was going to sit down next to him; and well, the rest is history. The universe put us together in the right place, at the right time.

Not only are you his wife, Jeannette, but you also help run Wyatt Management.

How did you become involved in the company’s operations?

Jeannette: When Tim told me he was rebuilding his business here in Texas, I offered to help. Building businesses and reviving brands is my passion. I initiated a major marketing campaign not only using traditional marketing techniques, but also leveraging the power of digital and social media to increase our brand awareness and build a new client base. I was doing all of this while still working my day job. As Wyatt Management grew, we decided I would serve the company best by coming on-board full-time.

Tim, what does Jeannette bring to the company?

Tim: Obviously her marketing and business development expertise. I would have never been able to revive the company as fast as we did without her.

Jeannette brings a confidence and tenacity I’ve never seen before. When we learned Shake Shack was coming to Houston, Jeannette said she wanted to go after their business. My response? “Yeah, us and every other GC in Houston!” But Jeannette was not to be deterred. She worked her magic and before we knew it the Director of Construction called to say he wanted to fly in to meet us. We built our first Shake Shack in the Houston Galleria in 2016, followed by

L-R: Wyatt Management’s Jeannette and Tim Wyatt

one in San Antonio. We are currently building our third one in Rice Village.

Jeannette is a great networker and also good at building strong relationships with our current and potential clients. Day to day, she works with our office staff on internal operations and manages our finances. Our team calls her “boss lady” (a nickname given to her by a former employee earlier in her career). She keeps our sups in line (laughing).

Jeannette, what is Tim’s most valuable contribution to the company?

Jeannette: Tim is the hardest working, most resilient man I have ever met. What he went through with the business in 2009 only to come back fighting and rebuild his business to the strength it is today is so impressive. He could have just thrown in the towel and gone to work for someone else. That would have been the easy way, but that’s not Tim’s way.

Tim is a voracious learner. He reads books on everything from how to be successful in business to coaching, mentoring and motivating teams. And, he listens to podcasts while driving to job sites. He injects the value of lifelong learning into our entire team. Continuous learning and self-improvement are part of the culture at Wyatt Management.

How has the construction business changed over the years?

Technology has had a huge impact on how we run both the company and our projects. Whereas we used to bid jobs in Microsoft Excel, we now use sophisticated software. We also employ an online project management system to run each project, which enables our clients to keep up on job progress through daily logs, photos and schedules. This information is available 24/7 so clients can monitor their jobs and easily share information with their management team.

Superintendents’ jobs have changed as well. I find that if field superintendents don’t keep up with new technology, they are unable to perform their jobs. That’s why it is important that the industry continue to promote careers in construction to the younger generation.

What have you both learned from owning a company in construction?

Tim: It takes thick skin and you have to be willing to put in a lot of hours, which requires you to have a passion for what you do. The biggest impediment to our growth in the past has been the fear of growing. I finally learned to embrace the growth and enjoy the ride. The other lesson we’ve learned over the years is that you have to invest in your employees and put the right team in place. If you want to be the best, you have to hire the best.

Tim, what do you think is the most challenging part of being a general contractor?

Well, for one, trying to manage a team

of subcontractors with different priorities to work together towards one common goal, and that is to deliver the most superior product on-time and within budget.

We are fortunate in that we have a strong base of subcontractors who have been working together on our jobs for years.

What do you love about your work?

Tim: Both Jeannette and I find the most gratifying part of owning a company is being able to reward our employees for their hard work. This year we created a bonus program for our superintendents, which enables them to reap the financial rewards of being a high performer.

At the same time, the superintendents’ bonus pool may be docked if they fail to perform on key responsibilities such as enforcing safety protocols on their jobs and uploading daily logs and photos.

We also have a performance review process wherein our clients evaluate our superintendents’ performance at the end of each job. This helps us understand where we can improve and our superintendents can learn what they need to do better.

It’s helped us build a stronger team internally and has given our clients a voice, which helps us build stronger relationships with each of them.

Jeannette: Over the years, Houston has become a hot-bed for construction.

Our clients are building all over town and it’s fun to drive by a restaurant or retail store that we’ve built. It’s also fun when a client or friend says they drove by a job site and saw our sign.

But for me, the best part is the thrill of adding new brands to our portfolio of clients. My mission is to keep growing and expanding our client base.

What do you both do in your free time, separately and together?

Jeannette: Owning your own business means you don’t have a lot of free time. Tim works morning to night, 365 days a year. For vacations, we like to go to allinclusive resorts so Tim is always a phone call or email away.

Tim: We also place a high priority on our health. We do vigorous workout routines like high-intensity training, spinning and lifting weights, as well as yoga. I firmly believe exercise and a healthy diet is what keeps us young.

What do you hope the next five or ten years hold for you?

Tim: Our main goal, of course, is to continue to grow the company, but we’re also looking into some development opportunities that will allow us to further diversify the business.

Jeannette: Tim’s mantra is that mediocrity is not an option. We want to be known as the best GC in Texas.

Wyatt Management is a general contractor in The Woodlands. –mjm

Houston Construction News • FEB 2018

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and making sure you are fishing during these times may increase your odds also. I like keeping track of water temperatures, especially when they dip lower than 55 degrees or so. This information may come in handy on future outings.

Tricking winter trout

Starting out with a lure that has been proven and one you have plenty of confidence in is what I like to suggest. That may be something totally different than what your buddy has tied on. However, it’s what gives him the most confidence. After you realize there is fish feeding in the area is when I try new lures and prototypes sent from sponsors. Don’t get caught up in fancy packaging and bright colors.

Those old standby lures your dad told you about still produce good fish!

by Capt. Steve Schultz Sponsored by: Waypoint Marine, Evinrude Outboards, Fishing Tackle Unlimited, E-Z Bel Construction, Costa Sunglasses, Diawa Reels, Simms Fishing, ForEverlast Fishing Products, Interstate Batteries, MirrOlure, and AFTCO Clothing.

M

any of you know that winter fishing in the Laguna Madre/Baffin Bay complex can produce some gator sized trout on artificial lures. What most people don’t know is what it takes to catch these fish on a consistent basis. Typically, our coldest weather is in February. This is primetime for wade fishing for these big sow trout and one must be prepared to handle some pretty harsh conditions out on the water.

My hunting season has come to an end until next fall and it’s now time to transition back to the bays where the majority of my year is spent. Leaving the South Texas brush country was difficult but seeing returning clients and gaining new ones will fill that void. I’ve been staying in contact with fellow guides and communicating with other friends that have stayed on the water and the consensus is that fishing is above average since the new year. Although we received some strange weather patterns this winter with the snow in December and some freezing conditions in January, I feel we should be in store for a stellar season this year. Water conditions are in great shape and the salinity levels should stay in check with the timely rains we have had.

There are certain signs you need to look for when fishing during winter months.

First, and by far the most important in my opinion, is the presence of bait in the water.

Everyone knows that where there is food, there will be something that will feed. Pods of mullet are the most likely to be present along shorelines and other structures. Large trout and reds may only feed once a day in cold weather and these mullet make for a great meal. Water clarity is also a factor in my observation when checking an area out.

Off-color or murky waters are preferred although I have caught good fish in clear water and is certainly a deal breaker. Third factor to a successful outing is a combination of solunar table and water temperatures. Keeping track of major and minor feed times

Send us your Outdoor Photos Hobbies/Crafts Vacation Ventures Hunting/Fishing Sports Activities Camping Backyard Fun Email (with info) to: HoustonEditor@ ConstructionNews.net

Port Mansfield dates are filling up for February and March. Call me for details if you are interested in wading the Lower Laguna Madre.

My 2018 calendar is now open for bookings throughout the year. Don’t hesitate in booking your fishing trips because my dates usually go pretty quick, especially during the more popular months.

To schedule your next bay fishing trip or hunting adventure give Capt. Steve Schultz a call at 361-8133716 or 361-334-3105 or e-mail him at SteveSchultzOutdoors@gmail.com. Good Luck and Good Fishing.

Chris Huey, field Staff with ForEverlast Hunting and Fishing products, caught this nice 26-inch – 6-lb. trout fishing with Steve Schultz Outdoors ion the Upper Laguna Madre. Fish was released after photo.

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Houston Construction News • FEB 2018

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

Are you ready for spring break?

I

s anyone? It won’t be long now until you have a bunch of kids with time off looking to you for something to do. If you plan to get in a fishing trip with the family during spring break, you need to start planning now.

Some folks prefer to just load up their boat and family and head off to the lakes and bays on their own. This works out fine if you have your routine down and are familiar with your rig and equipment and your fishing locale. If you are going to need a place to stay during the month of March you need to go ahead and make your reservations now.

Many people prefer to hire a reputable guide, at least for their first fishing trip of the year. Maybe you are not quite ready to break your boat out of storage yet, or you may be trying out a new lake.

It is pretty nice to be able to just arrive at your destination, hop on a boat, catch fish, go home and eat your fish. That way

you don’t have to deal with the possible hassles of trailering your rig, (how about those wheel bearings and tires?), negotiating a crowded launching ramp, wondering if your motor will run and if you can find the fish, and then going through

the whole process in reverse to get back home. If you have a day off to go fishing on your own or with a buddy you might enjoy the whole “half the joy of the trip is in the journey” idea, but with a couple of restless kids…you can see my point.

There are times when a good guide is a wise investment. If your time with your family is tough to come by because of your busy schedules and is too precious to waste or if you don’t want to risk damaging your own equipment in unfamiliar waters, go ahead and make you some reservations and then just enjoy your trip.

If you like fishing on your own, there are some other plans you can make too.

You probably could benefit from a trip to your local outdoor store to stroll down the fishing tackle aisle. Aw, go ahead!

You know you need new line on your reels so you won’t lose any fish this year.

Linger there a while, you know you want to. Just don’t forget to check out the electronics too. The fish-finders and GPS units just keep getting better, smaller and more affordable.

Do a little research. Visit with the folks at the tackle store to get the scoop on places you want to fish. They get to meet all kinds of anglers that fish various locations. They can give you tips on places to fish, launch a boat or stay a couple of days. Go on the internet and take advantage of all the information that is at your fingertips. Besides the commercial websites there are plenty of websites devoted to all kinds of fishing that have busy forums where fishermen share tips and tall tales. You’ll be amazed to find out how many other people share your enthusiasm for just your kind of fishing and how much you can learn from their experiences.

Let’s get those kids on the water and have some fun!

Houston Construction News • FEB 2018

Page 9

What’s your outdoor?

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ver since we began our first Construction News paper in October 1998 for the San Antonio area, the center of the paper has always been devoted to outdoor. Each paper after that in Austin, Dallas/Fort Worth and Houston has followed the same path.

The folks in our industry work hard and play hard and The Great Outdoors

section is a place to show your peers just how much fun YOU are having and making them a little jealous is okay too.

Hunting, fishing and other types of outdoor adventures are always welcome.

Don’t be shy and there is never a cost. So contact your Construction News editor and be a part of the Great Outdoors. -bd

Send us your photos and stories.

Outdoor activities and sports HOeditor@ConstructionNews.net

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Houston Construction News • FEB 2018

Successful foundation

Construction News ON LOCATION

Window shopping

Construction News stopping by at Katy Blinds for a photo; L-R: John Crosby, president, Jeremy Green and Kim Voyer -bd

Foundation Building Materials Branch Manager, Kevin May

F

oundation Building Materials (FBM) was started in 2011 by three business partners who saw a void in the growing specialty building materials market and sought to fill it. Ruben Mendoza, John Gorey and Tom Fischbeck, all with previous building materials industry experience, started FBM to provide professional contractors with a new and highly customer-focused option for sourcing materials and delivery.

The company started seven years ago, with a single branch location in Orange, CA. Today FBM has grown to over 220 locations across North America. In the state of Texas, FBM has nine specialty building products locations, all of which feature a range of contractor grade building materials and products.

“I got the name foundation from the Bible. It’s referenced there many times about a man building a house on a firm foundation. The house will withstand anything because of how it’s built and what it stands on,” says Mendoza. “My vision for this company is the same – to build a solid company that can withstand and flourish,

no matter what the circumstances.”

FBM continues to build strong relationships with leading industry brands to supply the construction trades with a range of building materials including drywall, steel studs, acoustical ceilings, insulation, plaster, stucco, EIFS, FRP, tools, fasteners and a range of other specialty products. The company also maintains an extensive fleet of specialized delivery vehicles.

Each FBM branch is tuned in to the individual building material needs of its geographical market based on climate, building codes and other local variations.

In late 2014, FBM acquired a Texas Building Materials Group called BAV, which gave FBM a strong presence in all of Texas including the Houston market in La Porte, TX. Regional Vice President Allen Fisher, in Texas, manages the business with support from a team of well-qualified, local building materials professionals.

Foundation Building Materials is a supplier of building materials with locations across North America. -cmw

Houston Construction News • FEB 2018

Page 11

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

The marriage of safety & production Oliver Guzman, Houston Supervisor ESC Safety Consultants Houston, TX

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SC Consultants understand the importance of identifying and correcting hazards and are equipped with the means to keep jobsites safe, assisting subcontractors and contractors alike in meeting their unified goal and a safe work environment.

What do you consider are the major safety risks in construction?

The major hazardous safety risk in construction is that many contractors have a horizontal safety plan that is not specific to each jobsite. Each jobsite is different. Each site will have different hazards, so many safety hazards do not get evaluated properly.

In addition, subcontractors and contractors are hiring undertrained, unskilled employees due to high demand turnover for construction and are not completing any type of required training. Training that includes new hire orientation, fall protection, PPE, ladders, scaffolds, etc. Many contractors do not understand the importance of teaching their employees how to recognize, control, isolate and eliminate hazards, and have a believe that if they hire or sub out their work, the hiring contractor is not liable or in charge of the safety of that hired contractor.

What are ways to identify and reduce safety risks?

Ways to identify and reduce safety risk should first start when a job gets bid out.

Upper management should evaluate the safety risks that the jobsite will present.

Then, contractor should develop, imple-

ment and enforce a safety program and safety policies and procedures specific to that site, factoring in PPE requirements for the specific hazards that the site will present. Third, educate and train all employees on the safety program’s requirements.

How important is a good safety record?

A company’s safety record whether good or bad, most definitely will affect their ability to gain work. For example, a company with a good safety record will be more competitive at bid day since their insurance costs will be less than a company with a poor safety record.

Does an increase in the volume of construction affect safety?

As the demand for construction increases, the demand for employees increases, schedules get tighter and the importance of safety is overlooked with a greater focus on production, which in turn develops a “get it done however you need to get it done” mentality. The greater the demand, the greater the push for completion of a project rises, causing stress, causing an employee’s mind to drift from safety. More concern goes to an employee worrying about potentially losing their job for not producing, instead of doing the job safely.

The safe word Renee Ramthun, CSP, CHST, Environmental Health & Safety Director Jordan Foster Construction Austin, TX

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he construction industry knows the word “safety,” but keeping up with the new advances, courses and employees are key to any company.

What do you consider are the major safety risks in construction?

As cliché as it might sound, our biggest risks in construction are: one – the actual work conditions and two – the workforce.

It’s an ever-changing entity. There is no single day that will be like the last one. The worksite will be different. The employees will likely be different (whether it is because of decreased staff, increased staff or simply new subs on the job.) After that, it’s the “fatal four” that are documented every year: fall hazards, electrical hazards, struck-by hazards and caught-in-between hazards.

What are ways to identify and reduce safety risks?

You have to go beyond “compliancebased safety.” You have to begin to look at the things that are causing the issues on your site and address those in ways that are meaningful to that specific project.

How important is a good safety record in the construction industry?

A good safety record is critical in the construction industry. Every single new project proposal, without exception, includes a section that reviews your safety record. Owners look at the GC’s safety record, GC’s look at the subcontractor’s safety record. The safety record is one indication of how a company will perform and what their overall culture is.

How does construction safety impact Jordan Foster Construction?

Safety has a great impact on our company in a number of ways. Our ability to perform our job safely impacts our ability to get new work. Additionally, for us, because we self-perform much of our work safety has a direct impact on our immediate workforce, our greatest assets. Without our employees, we would be unable to perform the work that we do, so it is obviously critical for us to keep our employees safe.

Does an increase in the volume of construction affect safety?

An increase in the volume of construction can certainly impact safety. When there is a sudden increase in volume there is generally an increase in new employees, new employees that may not have the training or experience that our current employees have; new employees that haven’t yet bought into our culture and way of thinking; and new employees that may have heard it a million times before.

What can be done to increase safety awareness and create a safe working environment?

We start every day with a Task Hazard Analysis. On some days, a crew may do more than one, depending on what

CONSTRUCTION SAFETY

Sept: Green Building Nov: Architecture & Engineering Oct: Specialty Contractors Dec: Construction Equipment

What can be done to increase safety awareness and create a safe working environment?

Contractors usually focus on production and many of the leaders of these companies are not safety professionals, although they are professional construction managers. A way to increase safety awareness and create a safe working environment is to outsource safety, either by contracting a safety consulting firm or directly hire a safety professional. Also, upper management must be onboard with safety.

Many have no concern for safety, which leads to the employees having no concern for safety.

What safety training programs are available? In-house programs? Outsourcing? Associations?

There are many safety training programs available. The best way for a contractor to obtain required safety training is to outsource to a safety consulting firm or join an area contractors’ association such as ABC, AGC, ASA, IEC etc. Many of these area contractor associations can guide contractors in the right direction. They have monthly safety council meetings where various contractors gather to discuss safety hazards, ideas for safety mitigations and are available to assist all members develop safety programs and offer advice.

How does construction safety impact your company?

Safety is our business. We understand the importance of identifying and correcting hazards. We assist general contractors in implementing effective subcontractor safety management programs and assist subcontractors in implementing safety programs within their own companies and on the jobsite.

their tasks are for that day. We have our safety mantras – don’t just go through the motions. Learn from you issues. Be brutally honest about things. It is through honest communication that you can find the areas that need to be improved before an issue arises.

What safety training programs are available?

There are a number of training resources out there. In Texas, both UTA and TEEX have extensive safety courses. OSHA provides a number of free courses offered in all of the major Texas markets that range from one-hour courses to full 10 and 30hour courses in both English and Spanish.

There are online courses available through several vendors. AGC, ABC and ASSE (ASSP) also host many training courses through their various chapters. The route that we take is to provide most of our training inhouse, so that we can gear the topics specifically to the needs of our employees and can meet their schedule requirements.

Have there been recent advances in PPE?

There have been a couple of new recent advances in PPE that have peaked some interest, though Jordan Foster hasn’t adopted them yet. We are still looking to see if they are actually effective. New types of safety helmets have recently become popular in Europe and Australia. Kask is the name brand that I have seen most often, though there are others out there. In spite of their appearance they seem to be lighter than your standard hardhat, but provide more impact protection. They can be equipped with much of your other standard issue items, such as safety glasses and hearing protection. Some of the larger contractors are beginning to make the switch, but these new types of safety helmets are by no means commonplace yet. Safety vests with intrinsic safety devices are

Have there been recent advances in PPE?

PPE is constantly improving in all arenas. Fall protection is a great example. Recent advances in fall protection gear, such as body harnesses, are more comfortable to wear. Many types of portable anchor points are also available now. Safety glasses are more comfortable.

What is on the horizon for the safety industry?

As OSHA introduces a new standard or modifications to an existing standard come about, the safety industry will come up with new types of tools that will allow construction companies to follow new guidelines.

What is the most significant challenge your company faces regarding safety language barrier? Increased construction volume?

No matter the language it is the employer’s responsibility to ensure that all employees understand the training presented to them in a language that they understand.

Increased construction volume is great for the economy. More work means more jobs. But that being said, these employers must keep up with the training that is necessary for the trades involved.

How are you dealing with these challenges?

As a safety company, the challenges presented from construction companies do not vary that much. On rainy days all companies want training. When companies are busy they must work and produce as much as they can in order to be profitable. But safety cannot be compromised for production! In today’s construction market a company will not survive unless they find the marriage between safety and production – a successful union. -cmw

being introduced now. Some have cooling devices and flashing lights, so you are more visible. There are some that can sound an alarm if there is some oncoming traffic hazard.

What is on the horizon for the safety industry?

I think the safety industry is heading more and more in the direction of risk management and looking at enhanced metrics to determine the “safety record,” rather than sticking to the tried-and-true compliance-based safety with an occasional glance at the incident rates and EMRS. What is the most significant challenge Jordan Foster faces regarding safety language barrier?

Our most significant challenge is establishing one unified “culture” across our company, because we have entities that self-perform and others that act purely as GC’s, so the dynamics are obviously different. We communicate, tackle one issue at a time, suggest a solution, test that solution, revise as necessary and then we communicate. The continuous flow of information, in particular with the workforce, helps guide our activities to what is most effective. It is easy to look out over a site and make a determination about what needs to be addressed, but unless you have open communication with the employees you won’t know whether that is really the issue. The employees know where the problems are and they generally have the solutions, if you take the time to ask them and then listen to their answers.

The construction industry instills safety all around. Listen, learn and be safe out there.

Jordan Foster Construction is a general contractor headquartered in El Paso with offices in Austin, Dallas, Houston and San Antonio. –lv

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Houston Construction News • FEB 2018

NEXT TH MON Kidd Roofing

CONSTRUCTION EDUCATION

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

Safety is good business Baldemar Martinez, Branch Manager National Trench Safety San Antonio, TX

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afety in the workplace has received an increasing amount of attention over the past several years. The rising cost of insurance as well as litigation cost has caught everyone’s attention. In recent years management has considered safety as a hot topic, and resources are going toward compliance, accident prevention programs, and safety training. Yet for most, the safety record has much room for improvement.

If management has demonstrated a commitment to safety, if the safety department is busy with compliance, if safety training is up-to-date, what are we missing?

OSHA has a focus four which looks at construction hazards related to falls, electrical, struck by, and caught-in-between. These types of accidents continue to plague the construction industry. The question of “why” these accidents take place remains, and finding the answer to preventing accidents has been elusive for many construction companies.

Perhaps part of the problem is that employees just don’t “get it.” If so, just

exactly what is the “it” that employees are not getting?

A superintendent was overheard once saying “nobody wants anybody to get hurt, but when you have deadlines to meet, projects that need to be finished, and work that has to get done, sometimes you have to take chances.” Maybe that is the “it” that this superintendent is not getting.

Do employees get the fact that safety is good business? Do employees really understand that skipping safety steps and taking chances do not move the proverbial ball down the field? Do employees understand that behavioral safety programs are

Stop, think, act Darren Alexander, EHS Manager Air Conditioning Innovative Solutions (ACIS) McKinney, TX

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hat do you consider are the major safety risks in construction?

Falls are a top priority, working from ladders, slips, trips and falls. Never forget about housekeeping.

What are ways to identify and reduce safety risks?

Stop, Think, Act – Stop and evaluate the task; think how it will be accomplished, then act in a safe manner. Training related to the type of work is essential in order to evaluate risk and recognize hazards associated with the task.

How important is a good safety record in the construction industry?

A good safety record is very important. It is a major part, if not the most important part, of a business’ reputation. The safety record and reputation can be very impactful on insurance cost, EMR, securing job contracts, etc. In addition, how employees conduct themselves, safely and professionally, is the difference between repeat business and maybe no business in the future. Companies do not need a liability on their jobsite. They need the peace of mind that all employees are trained and not only know how to work safely, but will work safely and not take shortcuts.

How does construction safety impact your company?

Construction safety is a big part of our company. We are many times the subcontractor to a general contractor and this requires us to demonstrate a safe professional attitude at all times. We have to work every day to rise above the competition and

always do what is right. I learned years ago from a mentor to always do what is right and let the cards fall where they fall. So when I came to work at ACIS, their guarantee was, “We Do it Right or We Make it Right,” I knew I was at the right place.

Does an increase in the volume of construction affect safety? Realistically, I would say no. It is the mindset of each employee. With increased workload and tight schedules, safety can get squeezed and appear to be less important, sure. But with proper training and company culture it is easy to remind everyone what is important – Safety & Risk Reduction. Each employee must keep their safety and the safety of everyone around them in the forefront of their mind.

What can be done to increase safety awareness and create a safe working environment?

Safety is personal, we have all heard this slogan and many others, but to me safety is about people, I am in the people business, building trust, effective relationships, energizing the team, providing training that allows the employee to be informed, and educated. People want to do the right thing and if given the right tools to make the right decisions they will succeed every time.

not just silly rules and a passing fad?

For example, many times we talk about the hidden costs related to an accident. We teach that the hidden costs of an accident are typically about five times that of the “visible” cost. We can use the example of an iceberg, which is mostly hidden, and how the massive chunk of ice below the water line is much larger than the visible part.

We can even preach about the personal pain of an accident by showing graphic pictures of missing or mangled limbs or pictures of eyes with protruding objects. Yet, even when confronted with the knowledge that a spouse and kids can be left without a husband and father, employees can still make a wrong decision and put themselves in harm’s way.

Perhaps it is the belief that the reality of a tragedy could happen to them or their crew. In spite of all of the training, maybe it is an employee’s unfounded confidence that. “I am too smart, too quick, too lucky, or too cool for the unthinkable to happen to me.”

One way to know if someone suffers from this mistaken ideology is to find out if they work safely when no one is watching. Do they take risks when they are alone or believe that no one can see them?

Perhaps the ultimate test for all of us is this: Do we work safely at home? Does the concept of “we are more productive when we work safely” follow us home? Do we understand the concept that “safety means productivity gains?” If employees do not understand that, how can we expect the employee to get it right on the job?

The simplest way to explain how the phenomena of “safety is good business” works is to approach it from the perspective of the efficiency expert who analyzes every step of the work flow process, looking for ways to eliminate waste. The safe approach to any job is to first analyze it, organize it, assess the hazards, and proceed only after eliminating or controlling the hazards.

Behind the concept of “safety is good business” is the realization that if I do not deal with hazards, they will deal with me!

By taking safety seriously enough to take it home, employees will learn and practice good safety habits that will lead to a better job and a better life.

National Trench Safety is a fully integrated provider of trench and traffic safety products. -cmw

What safety training programs are available? In-house programs? Outsourcing? Associations?

We have been creating a library of online safety training that employees can take and are required to take depending on job title, positions, etc. In addition we outsource some specific training such as Powered Industrial Trucks or Confined Space Training. I personally belong to American Society of Safety Engineers and attend multiple trainings to stay up to date on new standards and state of the art safety methodologies.

What is the most significant challenge your company faces regarding safety Language barrier?

The language barrier is and will continue for some time. You can run into many different languages from the many Hispanic workers, to just as many owners and other nationalities in America today, in boardrooms to the construction site. Getting people to understand the safety language, acronyms, and best practices can be difficult.

What are some of the safety training program types? Equipment? Jobsite?

Other?

Online training, instructor led training, job specific training, hazard recognition, rescue equipment, proper ladder usage, equipment inspection, etc.

Have there been recent advances in PPE (Personal Protective Equipment)?

PPE is always advancing, from improved rescue equipment to basic safety glasses. The key seems to always be around style and comfort. If it is comfortable and makes the employee look good, they want to wear it. I think that is important, but for me it must also perform to protect the employee. PPE advancements range from improved hearing protection, fall harnesses, SRL’s and gloves and are always improving and very important. Most all will agree injuries to our hands are way too frequent.

What is on the horizon for the safety industry? Changes in technology; Equipment; Other?

I think one of the biggest challenges the safety industry faces today is continuing to transition the cost effectiveness of a good safety process. Great strides have been made on this endeavor over the last decade but there is still work to be completed on this front.

www.constructionnews.net publishing the industry’s news

Does increased construction volume, costs or other factors significantly challenge how your company approaches safety concerns?

Cost is always a challenge. Keeping costs down all while spending more money on PPE, safety equipment, supplies, etc. will always be a challenge in finding low cost-effective providers of quality safety equipment.

How are you dealing with these challenges?

Networking and building effective relationships with vendors and suppliers and taking advantage of deals and specials when available are vital. This all ties together to knowing the best time to buy and have the equipment and supplies when needed. Again, I am in the people business, from the supplier, vendor, management, employee, etc., and it is a great revolving circle of building trust, effective relationships, energizing the team, and providing training.

Darren is a Certified Safety Professional (CSP) and a member of American Society of Safety Engineers (ASSE), where he has served as the Fort Worth vice president, and president. He has also served as the ASSE Region III student leadership conference chair, and senior advisor for the past 6 years. In addition, has served as the ASSE Society on several joint task force initiatives over the last 14 years. -cmw

Texas Style

★ ★ ★ ★

San Antonio Austin Dallas/Fort Worth Houston

Houston Construction News • FEB 2018

Page 13

continued from Page 1 — Celebrating five creased in size, it’s allowed them the ability to add more resources to focus on employee development and improve on their engineering and CAD modeling technologies.

About two years ago, the company made a decision to invest in a new facility that would allow them to continue on the pace of growth they were experiencing and help them maintain their service levels.

“We lasted almost five years to the day in our first facility and by the time we moved, we were busting at the seams.

Our manufacturing facility was overcrowded, everybody was sharing their office with at least one other person, and we had to expand our parking lot so people wouldn’t have to park in the grass.

“We designed this new facility to allow future growth as well with plenty of room to expand the manufacturing and office

facilities as we need.”

Kazmann’s love doesn’t stop at precasting. He and his company are heavily involved in several trade associations in the construction industry, hosting barbecue and crawfish teams throughout the year as well as sponsoring golf, fishing and clay shoot teams in the various associations they are involved in. “As we get settled into the new facility, there’s a good chance we will be in the middle of an aggressive table tennis tournament going on after work.”

The company christened the new facility by hosting their company Christmas party in the facility’s warehouse the day before they moved in and has plans to host an open house in the spring once they’ve gotten settled in and unpacked.

Locke Solutions is a manufacturer of precast concrete structures in Houston.

-cmw

continued from Page 1 — Business as youth-ual

Esslinger says his years in the busi-ness have taught him the importance of patience and honest client communication.

“This is not a sales job; this is a reallife growing business,” he says. “A lot of our clients are repeat clients, so obviously it is critical to treat them well and be honest with them, to give them a reality and in doing so, telling them the truth, good or bad. Communicating with them well and keeping them in the loop can really assist in overcoming obstacles.

Every project is going to have small problems. If you let everybody know those issues through open and up-todate communication, you can provide them solutions and options to cure, which may allow you to overcome those problems, [and then] you really don’t have an issue.”

Esslinger has also learned the importance of developing a strong relationship with his employees.

“Hunting, fishing, the rodeo, our

annual Christmas party – we do a lot together,” Esslinger says of his employees.

“My business is still a very small business and I treat employees like family. I get to enjoy a lot of time with my team members. You’ve got to work hard to be successful and give yourself the opportunity to play hard too, or you’re just going to burn yourself out. This is a tough business.”

With two offices offering a wide range of services, Esslinger says his days are busy but he leans on the support of his wife and two children as well as his own strong office team.

“It can be a lot, but we are blessed to have a wonderful supporting team that looks forward to any challenge,” Esslinger says. “I enjoy the challenge of being a business owner, the growth opportunities and the family atmosphere that we have here.”

Epoch Construction is a general contractor located in Houston and Austin. –mjm

continued from Page 1 — Concrete design

Association Calendar

Content submitted by Associations to Construction News ABC

Associated Builders & Contractors Inc.

Feb. 9: Industrial Trade Luncheon, 701 Avenida De Las Americas, #900, 11am1pm. For more info, call 713-523-6222 Feb. 15: TX Hold’em Tournament, The Bell Tower on 34th, 901 W. 34th St. 9:00pm. For more info, call 713-523-6222 Feb. 22: Membership Mixer, King’s Bierhaus, 2044 E. TC Jester Blvd., 4:307:00pm. For more info, call 713-523-6222

United Way, 50 Waugh Dr., For more info, contact Bill Fairbanks at Fairbanks@rpcinc.com or call 281-227-3577 HASC

Houston Area Safety Council

Feb. 9: Houston Safety Excellence Awards Tailgate, Pasadena Fairgrounds, Midway Lot, 7902 Fairmont Pkwy. For more info, email events@hasc.com MCA

AGC

Associated General Contractors

Feb. 1: Annual Chapter Meeting, Marriott Marquis Houston, 1777 Walker St., 7:30-9:00am. For more info, call 713-8433750 Feb. 13: Advocacy Sporting Clays Tournament, Greater Houston Gun Club, 6700 McHard Rd. For more info, call 713-8433750 ASA

Mechancial Contractors Assn. Houston

Feb. 14: MCA Houston Contractor Members Meeting, the Hess Club, 5430 Westheimer, 11:45am. For more info, call 281440-4380 Feb. 19-20: MCA Texas Winter meeting, Joshua Creek Ranch, Comfort, TX. For more info, call 281-440-4380 Feb. 28: MCA Houston Joint Meeting, the Hess Club, 5430 Westheimer, 11:30am.

For more info, call 281-440-4380

American Subcontractors Assn.

Feb. 21: 21st Annual Excellence in Construction (EIC) Gala, The Bell Tower on 34th, 901 W. 34th St. For more info, call 281-679-1877 Feb. 28 – Mar. 2: SubExcel 2018, Tempe Mission Palms Hotel & Conference Center, Tempe, AZ. For more info, call 281679-1877

NARI

National Assn. of the Remodeling Industry Houston Chapter

Feb. 16: Town Hall Meeting, Cavatore’s Italian Restaurant, 2120 Ella Blvd., 11:30am-1pm. For more info, call 713473-2382 NAWIC

National Assn. of Women in Construction

ASCE

American Society of Civil Engineers

Feb. 13: COPRI Quarterly Meeting, LJA Engineering Inc., 2919 Briarpark Dr., 11:30am-1pm. For more info, email Oliver Szymczyk at oszymczyk@lja.com Feb. 18-24: Engineer’s Week. For more info, go to http://www.discovere.org/ our-programs/engineers-week ASPE

American Society of Professional Estimators

Feb. 1: SeminarFest 2018, The Rio, Las Vegas, NV. For more info, go to www. aspehouston.org Feb. 12: Monthly Meeting, Spaghetti Westerna’s, 1608 Shepherd Dr., 6pm. For more info, go to www.aspehouston.org ASSE

American Society of Safety Engineers Gulf Coast Chapter

Feb. 1: ASSE/AIHA General Meeting, Location TBD, 11:00am-1pm. For more info, go to www.gulfcoast.asse.org

Feb. 13: NAWIC Houston Sponsor Highlight & Networking Hour, Maggiano’s Little Italy, 2019 Post Oak Blvd., 5:30-8pm.

For more info, go to www.nawic-houston.com NECA

National Electrical Contractors Assn.

Southeast Texas Chapter

Feb. 8: Houston Valentine’s Dinner, Killen’s STQ, 2231 S. Voss Rd. For more info, call 713-977-2522 Feb. 12: Coastal Sabine Valentine’s Dinner, The Grill by ASP, 6680 Calder Ave., Beaumont, TX. For more info, call 713977-2522 SWE

Society of Women Engineers

Feb. 15: SWE-HA Networking Hour, The St. Regis Houston, 1919 Briar Oak Ln., 6-8pm. For more info, go to www.swehouston.org WCA

Women Contractors Assn.

CSI

Construction Specifications Institute Houston Chapter

Feb. 6: WCA February Breakfast, Federal Reserve Bank, 1801 Allen Pkwy., Houston, TX. For more info, 713-807-9977

Feb. 27: Chapter Meeting – NFPA 285,

s

Submitted to Construction News

Round-Up

National Trench Safety is happy to announce the promotion of Wes Jones and David Beaver.

Aerial view of the eight concre buildings.

Wes Jones has been promoted to the new position of Senior Vice President of Operational Support and will be overseeing the many facets of day-to-day business operations including safety, training, the NTS Univ. and managing the large non-fleet assets for the com-pany. -cmw

Submissions

2012. Sarao remembers when they first started the team and approached him with hopes he’d join their venture. “I was young at the time and was able to make a move. I trusted Larry, knew he was a good guy and he did good work, so I took a chance and it has worked out for the best.” The office manager, Jennifer Stanley also shares a bond with Larry after previously working with him for 13 years.

Stanley joined the team in 2014 and has been a part of the team’s ongoing success.

Today the company has one office with six employees serving Houston and surrounding areas. Third Coast caters to private customers generalizing and specializing in tilt wall and prefabricated metal buildings.

Third Coast General Contractors, LLC serve Houston and surrounding areas. –lv

Round-Up

November. During that time there were no large challenges for the team to overcome. It was just a matter of difficult weather (rain) that they faced. Sarao adds, “There is every day challenges, but they are just every day challenges.” We all can agree on that.

The strong structure of Whiteoak was built upon the strong relationship between Third Coast, Adkisson Development and Dev-Tex. Larry Anderson of Third Coast, Steve Adkisson and Randy Rutherford of Dev-Tex have been working together on projects for the last 15 years. They have a great and strong relationship. Their long time friendship is what provided great communication along all lines of the project.

Third Coast has over 25 years of experience in every phase of construction.

Larry Anderson founded the company in

David Beaver will assume the role of Vice President of United States Operations and will be tasked with managing the company’s US based operations and will working closely with NTS’ Vice President of Sales and Engineering, Robert Stevenson. -cmw

This is a monthly section for brief company announcements of new or recently promoted personnel, free of charge, as space allows.

–––––––––––––––––––––––––––––––––––––––––––– Email (w/digital photo, if available) by the 15th of any month, for the next month’s issue (published 1st of each month).

Email info to appropriate city issue, with “Round-Up” in the subject line: ––––––––––––––––––––––––––––––––––––––––––––––––––––––––

San Antonio: saeditor@constructionnews.net Austin: austineditor@constructionnews.net

Dallas/Ft. Worth: dfweditor@constructionnews.net Houston: houstoneditor@constructionnews.net

Page 14

Houston Construction News • FEB 2018

A Look Back 10 Years Ago - February 2008 Construction News ON LOCATION

Construction News ON LOCATION

That’s a wrap

Clear as day

Holiday songs play in the background as Bill Maidlow and Jason Abbot take care of last minute duties on the Friday before Christmas at United Tool & Fastener, a construction supply company. –alr

L-R: Jesse Cantu and Fred Mata get a last laugh in before the end of the day at Clear Glass. They install commercial glass in Houston, Katy, San Antonio and Austin. –alr

Construction News ON LOCATION

Construction News ON LOCATION

Calendar club

Broom, broom

Tony Monsivais, counter sales, and Juan Diaz, driver, show off the AOC Welding Supply 2008 calendar. The company distributes welding, specialty gases and safety supplies. -alr

L-R: Dean, Miguel and John stand next to the ‘Broce Broom’ machine at Hertz Equipment Rental. –alr

Smile!

Bill Jones, Raven Mechanical, gave John Roth, City of Houston inspector, best wishes in Roth's new career in retirement at a Plumbing Heating Cooling Contractors Association (PHCC) luncheon Jan. 10. They were at Brady’s Landing. –alr

Construction News ON LOCATION

South side

Cashiers Tristan Webb and Alex Toulos assist plumbing contractors at Southland Hardware. The hardware store has offered plumbing, electrical, paint and glass supplies since 1935. –alr

Construction News ON LOCATION Construction News ON LOCATION

Ray of sunshine

Cooling and heating contractor Keith’s Air Conditioning Co. joined forces with P&M Air Conditioning and Heating Co. recently. L-R: Back row: Joyce McGregor and Steve MadduxFront row: Rebecca Maddux and Stacey Moffitt –alr

Floor it

Eric Aljets is prepared to give tile estimates at Texas Tile and Carpet. He manages the family-owned business with his sister Melissa and Vijay Avlakha. –alr

Houston Construction News • FEB 2018

Page 15

No rule breaking

Industry FOLKS Larry Means Head of Estimating Vital Steel Erectors Houston, TX

L

arry Means is not your ordinary ironworker. At first glance, you might want to turn and walk the other way, but there is a draw to this bear of a man. A draw that few can explain.

“I came from a good family. My mom and dad were good people. Dad had a good reputation, not only in the business world, but also the Christian world. My mother was your typical good woman. She was always faithful to my dad and did what my dad said, just like the good book says. They were married 67 years.”

With roots like that, it’s hard to believe that anything but good would come out of Larry, but as Larry puts it, “I did a lot of bad things.”

Around the age of 13, Larry got involved in drugs and was addicted for 35 years, to include heroin, meth and cocaine. He sold drugs, collected money for drug dealers, took young ladies off the street and filled them with heroin.

And all during that time he worked for a living. He was an ironworker and a supervisor by the age of 19.

“I started working in 1965 after school and during summer vacation with my dad. He worked for B&C Construction at the time, one of the first erection companies in Houston. I know this trade. I’m good at this.”

In 2001, at age 49, Larry hated himself and everyone in his life. Everyone that is except his mom, but he hated his dad more than anyone else.

“I didn’t love or care for anyone because I hated myself and you can’t love anybody if you hate yourself. I actually had a plan to kill my father. I hated him because of who he was and what he

stood for. He had everything and I had nothing because of the life I lived. My dad was a good man who was successful. I did not believe in God back then. It didn’t happen, not the way I thought it would.”

It was during this time that Larry’s dad had a stroke. He hit his head and hemorrhaged at his temple. After receiving a call from his mom, Larry took his father to the hospital. While he was there, he did something while waiting in the ICU. The doctors said his dad was going to die and needed surgery. For the first time in his life, Larry started praying.

“That night I accepted Christ in the name of Jesus. My dad died while on the table but his heart started beating again. He lived another 12 years teaching me how to love people the way our Lord does.

He became my best friend and mentor.

“It’s a very strange, unusual story.

But my faith has grown like you wouldn’t believe. I know when I pray for people, God heals them. I know when I talk to people, God saves them through me. It’s been a very crazy ministry. I am now the Rev. Dr. Larry. I earned my doctrine two years ago. I never finished school and don’t have a GED. I’m also a Chaplin through the same college.

“God has opened doors for me. I was a counselor for the school district of Spring Branch for a while. I’m able to council in schools to teen and gangs on gang awareness.”

Larry ministers all over the county, and still works 40 hours a week at Vital overseeing the company’s estimating department. -cmw

Daniel Dean and his crew in 1993.

N

ot everyone starts his or her career in junior high, but Daniel Dean, owner of Daniel Dean Land Clearing & Dirt Work, sure did.

Dean has two and a half decades of experience and his team love what they do.

Dean does have six rules that he asks his team to follow.

Number one is “no negative talking or negative thinking on the job.” Second is to “get along with others, it is not a competition.” The third rule is “no Harley Davidson or pictures of half naked females on t-shirts attire.” I don’t think the guys would want to get those garments dirty anyways.

Now the fourth rule Dean had to add due to an incident on a job site. Dean remembers having to get on a small excavator. “I made a slight turn and I went down the hill of the pad to move some dirt around. When I came back up I was at that same spot and the dirt became uneven. I walked over there to smooth is up

and the guy on the bulldozer raced across there to smooth it up too. He came over there and didn’t slow down. If I hadn’t moved out of the way I would’ve been run over.” So there you have it rule number four, “be nice to the boss.“

The last two rules are “no cussing on the job and have fun.” The team does have fun, while following Dean’s rules. He makes sure everyone has fun with what they do. To reward his team a few times a month Dean will have food catered or he’ll treat the team to a good lunch. “If the job ever got to a point where it was just work and boring, I don’t want to do that nor would I expect my guys to do it.”

In the case that one of the guys breaks a rule, Dean says their name goes on the back of his dirty tailgate. If that one person keeps breaking rules, well then his name gets a tally mark. No shame in the name game.

Daniel Dean Land Clearing & Dirt Work is an excavating contractor. –lv

Page 16

Houston Construction News • FEB 2018