Covering the Industry’s News
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www.constructionnews.net H (210) 308-5800 H Volume 15 H Number 7 H JULY 2018
Mind of his own
Written in stone
L-R: Janette Gibreal, Dino Palermo (1st employee of 21st Century in 1996), Gary and Jordan Gibreal at the Mjejane River Lodge in South Africa.
Ricardo Delarosa, owner of Dela Tile and Stone, in one of his showroom kitchens.
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ot knowing what to major in college is a painted picture we can all relate too, right? After Gary Gibreal got out of the Air Force in 1992, he attended the University of Texas Austin part time as a biology major. He spent the other part of his time painting for his brother who was a contractor. “I couldn’t make up my mind on a final major, so I was going to take a year off from college to decide which major I was going to complete,” said Gibreal. During that year off he worked as a painter; business in painting for contractors was booming during the mid-90s. Things can sure happen quickly. “It went from me passing out flyers on wind-
shields and going door to door” to having a sales staff and a few employees. In 1996, Gibreal opened 21st Century Painting & Roofing. Of course, his trade as a painter is how the business started, but then in 2001 he hired a salesman, whose background was in roofing. “He had been in the roofing business for 20 years and he convinced me to add roofing to our services, so we did.” Gibreal acknowledges the challenge he had to overcome – “building a business from scratch with no formal business training.” But with his background and perseverance he managed to overcome all odds in the 21st century. continued on Page 16
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fter eight years in the Coast Guard and then getting a business degree from St. Edward’s University in Austin, Ricardo Delarosa’s uncle encouraged him to get into construction, specifically stone work. Dela Tile and Stone was formed in October 2000. The company is now located in its third facility. It has gone from a 2,000sf granite building to a 15,000sf one. He has a 3,500sf showroom where people can come and see his products. Delarosa said that 90 percent of the customers who come to his showroom end up buying something. The early years were, as is the case for most new business, hard. For the “first
three, four years,” Delarosa said, “it was tough You’re making it on bread and baloney.” But with the booming Austin-area market, Delarosa is taking care of business now. He’s done work at the University of Texas, Austin, and many other commercial sites. Delarosa started out doing mostly tile floor work, but this has morphed into wood and other stone work. By learning as he went, as well as hiring the right people. Dela Tile can handle most any request. Dela has 21 people working for it. Delarosa’s two daughters work for him, one as a designer, the other in sales and operations. continued on Page 16
Aging bridge gets facelift
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he aging infrastructure underneath the north side of the Ann Richards Congress Avenue Bridge was a growing concern for The Trail Foundation, the nonprofit that preserves, enhances, and connects the Ann and Roy Butler Hikeand-Bike Trail for the benefit of all. It was imperative to find the right contractor to update the decades-old wooden bridge, add vital safety improvements, and create a scenic bat viewing area. Founded by Ron Albee in 1990 and having extensive experience in heavy civil construction work such as railroads, utilities, commercial building, highway/ bridge/street and airport expansion and among other types of work certainly had its benefits for Jay-Reese Contractors Inc. They were the right fit for the Trail Bridge at Congress Avenue’s facelift. Jay-Reese Contractors moved on to the site March 5 of this year and complet-
ed the $1,750,000 construction portion of the $2.5 million project by May 25. The Trail Bridge at Congress Avenue updated the aging wooden bridge underneath the north side of the Ann Richards Congress Bridge that linked the east and west sides of the Butler Trail. This link took place around a blind and narrow passageway that posed a safety threat for runners or cyclists who rounded the corner at high speeds, and this often resulted in collisions. The new 172-ft. long, over-water pedestrian pathway that now links this part of the Trail has enhanced the safety for pedestrians and bicyclists by removing the blind curve on the existing structure, widening the pathway to 14 ft. to allow cyclists and runners to pass each other safely without the risk of collision, making the area ADA-accessible, connecting the Trail to the Waller Creek area, and will The Trail Bridge at Congress Avenue
continued on Page 16
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Austin Construction News • JULY 2018
A career for ages to come
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L-R: Firetrol Sprinkler Superintendent, Blake Burich; Leah Allen, Ph.D; Firetrol Alarm & Detection Project Manager, Brian Crafts
iretrol Protection Systems Inc. has been in the fire protection business for over 34 years protecting lives, businesses and assets. The company has recently reached beyond protection to training, and not just training of their own employees, but to the educators in the area through the Educator Externship program. The externship program is a professional development opportunity for educators. Funding for this program was awarded by the Texas Workforce Commission to the Rural Capital Area Workforce Development Board (Workforce Solutions Rural Capital Area) for the 2018 Summer Externship Program. This year’s collaboration is with five independent school districts and five Chambers of Commerce. Through this program, educators are matched with employers in the teacher’s subject matter and/or a subject matter of interest. As an additional benefit, instructors will be able to introduce new career opportunities to those headed into various careers. “We want graduated high
school students to know they have the ability to earn a very good living, enjoy full benefits, and build a career without taking on student debt as an option. Life safety skilled trades are essential to new construction and existing businesses because they’re code-driven. Our industry is here to stay,” says Firetrol Austin’s Development and Communications Director Amber Chaib. The experience and knowledge educators gain will be taken back to their classrooms via educator-developed strategies that integrate what they learned in the field. They will spend one day each with three of four Firetrol Austin’s divisions of sprinkler, alarm & detection, and inspections. Leah Allen, Ph.D., biology, chemistry, environmental systems and aquatic science teacher at Success High School in the Round Rock Independent School District is the first to complete her educator externship with Firetrol. Firetrol is a full-service fire protection systems contractor. -cmw
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A new home
fter nearly 10 years in the same location, H&E Equipment Services’ (H&E) Austin branch is taking advantage of the extraordinary growth the Austin commercial construction market is experiencing with the relocation of its Austin branch to a newly-constructed facility at 104 Benelli Drive, Hutto, TX. The 9,500sf facility sits on three 3.12 acres with a fully fenced and paved yard area, offices, parts warehouse, and an eight-bay repair shop. The facility is capable of handling repairs for a variety of general industrial, construction, and earthmoving equipment. The branch specializes in aerial lifts, telescopic forklifts, earthmoving, and general construction equipment from the following manufacturers: Atlas Copco, Blue Diamond, Doosan, Gehl, Generac/Magnum, Genie, Husqvarna, JLG, John Deere, Miller, Multiquip, Okada, Skyjack, Skytrak, Sullair, Takeuchi, UniCarriers Wacker Neuson, Yanmar, and others.
The new facility will provide new and used equipment sales, in-shop and mobile service, a comprehensive parts inventory, training, and other value-added services in addition to equipment rental. H&E’s Hutto branch will continue to serve the greater Austin area. “We are very pleased to relocate into a state-ofthe-art facility with greater store front visibility and easy access to major thoroughfares. The newly designed offices, shop and service areas will provide an overall enhanced customer experience and keep employee safety a priority. The increased yard area and efficient layout will allow Austin to grow the fleet needed to expand our market share. Established in 1961, H&E Equipment Services is one of the largest, equipment distributor and rental companies. For more information, visit HE-equipment.com,“ says Shawn Young, H&E Austin Branch Manager. H&E has 16 locations throughout Texas and 89 nationwide. -cmw
Construction News ON LOCATION
Visit leads to photo
The current name is …
Service Tech Dakota Hudson with United Rentals visits with Construction News at United Rentals in San Marcos, TX. -cmw
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L-R: Lyle, Thane, Leroy, Trent and Eric Wilkins
ince Wilkins Electric was established by B.A. Wilkins in 1959, it has had a few “nameovers.” When B.A’s son Eric Wilkins took over the business after his dad retired, it became “E.T. Wilkins Electric.” After Eric’s older brother jumped in to help with the avalanche of work in 1976, the siblings renamed the company Wilkins Electric Inc. This is the name that has stuck, even as two more brothers, Lyle Wilkins and Thane Wilkins, joined the fold. But the Wilkins brood is too busy working to argue about another name change. “Leroy is the vice president; he does all of the bidding, handles all of the materials, and schedules the employees,” Eric, who is the company’s president, explains. “Lyle, who serves as secretary, mainly works in services and he likes to work on the kitchen islands. Thane is the treasurer, and he works out in the field. While we have our disagree-
ments like anybody else, we work together pretty well.” Three years ago, the brothers were experiencing a slow period and were admittedly burned out after decades in the business. Ready to breathe new life into the company was Eric’s son Trent Wilkins, who decided that his dream of a law enforcement career was not what he wanted. “My son came in really gung-ho,” Eric said. “Of course, with him coming in, I got really excited. I really enjoy being around my son, who is a journeyman electrician. We have 25 employees and 30 builders we do work for and the business has really grown. I think Trent will continue it. He’s a hardworking kid, sharp, very personable. I am really proud of him; he’s special.” But will the name stay the same? Subcontractor Wilkins Electric Inc. is located in Austin. –mjm
Golfing remodeled
Contractors came together for the National Association of the Remodeling Industry’s (NARI) annual golf tournament held on May 16 at Balcones Country Club. 1st Place winners: L-R: Christopher Davison, president Austin NARI; Chelsey Carr; Jonathan McCabe; Matt Higley and Zach Doggett -cmw
Austin Construction News • JULY 2018
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Battle brained
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efore Stephen Peyton established his roofing business in 2011, he did something altogether different, and his company’s name reflects that. “I was a combat engineer in the Army,” Peyton explains. “I was in the horizontal and vertical 60-second combat engineering battalion. That’s why I call the company Battalion Roofing LLC.” After leaving the Army, Peyton’s battle mindset served him well when he took a job with the roofing company: Within two months, he was the company’s top salesperson. Within six months, he decided he could fight for more than sales and established his own company. Stephen Peyton, owner of Battalion Roofing LLC. Peyton says charging in to business ownership was “not scary really bad roof look great again.” These at all,” although the work didn’t come days, Peyton is preparing his own troops rolling in at first. to take over Battalion Roofing. “It took a while, since 2011 and 2012 “I would like to be able to pass the were drought years. It was hard to sell business on to my kids,” he says. “I have a roofing in a drought but I still managed son that is soon to be six. My daughter to do pretty well,” Peyton says. “Then in just graduated as an honor student from March 2013, Sun City and Georgetown high school, is attending Texas A&M, and got hit with hail, and we did 124 roofs helps with the marketing end by making there. Then Bastrop got hit and we did 30 folders. I’d like to hand them a business roofs there the same year.” that has been going for 40 years!” Rather than experiencing a seven- Subcontractor Battalion Roofing LLC is year itch, Peyton still enjoys “making a located in Austin. –mjm
★★★★★ Someone say ‘Party on the 4th!” CONSTRUCTION NEWS
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DFWeditor@ConstructionNews.net SAeditor@ConstructionNews.net Visit our Website to sign up for a free monthly Digital Subscription www.ConstructionNews.net The Austin Construction News (ISSN 15477630) is published monthly by Construction News LTD., dba Austin Construction News, and distributed by mail to constructionrelated companies of record in Austin and surrounding counties. All submissions should be emailed to our editorial offices. We reserve the right to edit any materials submitted. No fees for materials, copy or photographs submitted will be due unless agreed upon in advance in writing. Submissions will be published at our discretion on a space available basis. Construction News, Ltd., dba Austin Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error. Publisher reserves the right to reject any advertisement at any time. ©2018 Construction News, Ltd.
Construction News ON LOCATION
Ready, mix, smile!
Ingram Readymix driver Jesus M. Vasquez poses for a photo at the Ingram Readymix location in San Marcos, TX. -cmw
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Craig Welborn and Brian Welborn
Co-founders Welborn Woodworks LLC Austin, TX
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ow were you both introduced to the construction industry? Craig: We actually started working for John King Construction in Austin when we were 16. We started on the bottom rung, carrying equipment and materials from one part of the job site to the other. Then we just stuck with it over summers and we both did a little remodeling in college. What happened after college? Craig: When we graduated from Texas State and came back to Austin in 2008, I actually became a teacher, but just being inside all day didn’t fit with my personality. The recession in 2008 was pretty bad so there weren’t many people hiring, but I was able to finally get on with a couple of remodeling outfits and ultimately with a custom home builder in Austin, Dwight Dowd of Dowd Construction. He hired me on as a finish and trim carpenter. Brian: I worked in Phoenix, AZ right out of college for Pamé Construction until the market fell out in 2008. The construction market was still thriving in Austin so it wasn’t a tough decision to move back. Craig: I got Brian on with us for about a year and a half and that’s where we really developed our skills in advanced carpentry and joinery. In 2010, we decided we were going to start an energy-auditing firm; we thought it would be a nice industry to get into, but decided that wasn’t for us, either. We wound up back in the woodshop and started Welborn Woodworks in 2010. What were your feelings about owning a business? Craig: It felt necessary more than anything. We were getting too used to the “gig” lifestyle; they would let us know Friday if they were giving us our last check or if there would be any work Monday. We got fed up with the uncertainty and dependency on other people to tell us whether we were going to work or not. We also started realizing how much we were being paid and how
Austin Construction News • JULY 2018
much these jobs were being built for, even though we were the ones doing all of the work and had the skill. We were on the wrong side of the equation. It felt natural, but Brian and I have always been strong, independent people. Maybe that comes from being twins and fighting for your own identity your whole life, but we both had that urge to be on our own and be responsible. If we were going to be out of work, it was going to be our fault and not us waiting on somebody to bring us work or tell us that we were going to have a job. Brian: I always knew I wanted to work for myself; carpentry and construction seemed the most efficient route. Craig: We started with small remodel jobs. The mom of a good friend of ours is a well-known interior designer in Austin, and she started bringing us clients for little things; we just grew from there by word of mouth. It’s definitely been the most challenging, humbling and – for brief moments – most rewarding challenge I’ve ever taken on. Starting your own company is easy; it’s less than a couple of hours of paperwork. Running and creating a profitable company is extremely difficult. How has your business evolved? Craig: Our jobs have gotten bigger. As our skill set and resume have grown and improved over the years, we’ve put ourselves in a position to bid on, win and complete bigger projects, so our goals get bigger. As far as being the two owners and the growth of the business, Brian and I are a constant evolution. Everything changes so quickly and that’s kind of the addictive part of it too. If anything has changed, it’s been more opportunities and bigger opportunities. Brian: We’ve become much better at building, designing, and planning as we continue to take on bigger projects. Did your relationship change? Craig: In the beginning, it was very stressful. There was a lot of growing up to do because Brian and I had only known each other as twins. Now we know each other as business owners and partners, and the hardest lesson we learned was how to view our situations objectively as opposed to emotionally. Since the company has matured and we’ve matured, our professional and personal relationship has grown and improved a lot simply because of that newfound respect. Among siblings, it’s so easy to go the path of least resistance and blame and scream at each other! It takes a lot between family to put emotions aside and view it objectively and figure out the best course of action as professionals. I also think there was a learning curve outside of business management, which we had no experience in. We’re great carpenters, but learning how to run and grow a business has been much more challenging than any carpentry we had to do. It’s been really rewarding for Brian and I in the long run, though it was hard in the beginning. Brian: We were forced to learn how to
L-R: Welborn Woodworks’ Craig and Brian Welborn
work together instead of around each other. You also both had a second job as HGTV stars. How did that happen? Craig: My wife Heather, who was my girlfriend at the time, got a call from a friend of hers who was involved in the film and entertainment industry around Austin. She told Heather about an open casting call for teams/couples for an HGTV design show. Heather’s friend said that Heather and I should do the show since we’re both creative, but Heather said that Brian and I should do it. I drove Brian down to an open casting call at an Austin hotel. After sitting there for four hours, Brian was ready to leave! He wasn’t interested and didn’t understand what we were doing there. We actually made the finals for two different shows. One was “Brother vs. Brother,” but the show we did was called “Flipping the Block,” and it was eight episodes. Essentially, it involved four teams of two and four similar properties, all with the same budget and same rules. We lived in one of the houses and remodeled every room; every room was an episode and that came down to a competition. There were six competitions leading into a final auction. Whoever auctioned their house off for the most – minus what they spent on their renovations – won the contest. We did not win. Brian: I’m still not sure why we were picked for that show … Craig: It ended up being 75 insane days. We were sequestered the whole time. We didn’t leave the property. We had to shut down the business for two months. We couldn’t tell anyone where we were going or what we were doing. My wife replied to our emails to let everyone know we were doing something special and that we were out of town for a couple of months. Did you enjoy the experience? Brian: I enjoyed the overall experience. It was much more difficult and intense than I ever could have imagined. Craig: It was a good personal experience, and we had another good mark on our
resume, so it wasn’t all bad. In the long run, it wasn’t good for the business. Shutting down the phone lines for too long doesn’t help any business. You lose a lot in that time, but we got back on our feet when we came back to Austin. Are you recognized from the show? Craig: For a while we were. Two older sisters from the show were from New Orleans and we went there a few times. We got recognized more in New Orleans than anywhere. One time we were at a bachelor party, and we kept telling people, “No! No! Cameras down! Cameras down!” What do you enjoy when you aren’t working with wood? Brian: When I’m not in the shop, I like to play rugby with my club, the Austin Huns, get loose with my friends and family, and get outdoors when we can. What strength does your brother bring to the business? Brian: My brother brings a lot to the table. Most importantly, he does a lot of our graphics and design work. Craig: Brian is kind of the muscle of the operation. He’s the guy that is really quick to the job site and the workhorse of it all. It’s not that we don’t push the tools equally, but Brian is definitely kind of running the labor side; if there are questions or things to be figured out or asked, we usually default to him. What are your professional goals? Craig: For us right now, we’re looking forward to growth. When we started, we didn’t start with a business loan or anything; we started with what we had in our pockets. It’s been eight years of word-of-mouth advertising. Now, we’re right on that edge of hitting the next level between our commercial growth and our residential growth. It’s a really fun time; we’re in unchartered territory. We’re small fish in a big pond right now in Austin, and we’re trying to find our way up that ladder. Austin subcontractor Welborn Woodworks offers cabinetry and design. –mjm
Women on board
The newly elected 2018-2019 National Association of Women in Construction (NAWIC) Board of Directors. -cmw
Austin Construction News • JULY 2018
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ACEA is 35
If you could live anywhere, where would that be and why? Wimberly, TX! I’m so blessed to be here and I’m not planning on leaving anytime soon. Charlene Myers Myers Concrete Construction LP I would say San Marcos, TEXAS. Hays County is the 4th fastest growing county in the nation so I guess others feel the same way. The Texas Hill Country is home, clear rivers, great fishing, rolling golf courses, and we are only three hours from the coast. The opportunity for growth and development of business is another reason. Ronnie Barrett, Moore Supply 734 There’s a trendy word going around these days called “mindfulness.” Before I initiate any erroneous and goofy visuals, I’ll clarify, if needed, how I interpret this word. Mindfulness is the practice of being truly present to the moments we live in and all they contain. If I could live anywhere, it would be 100 percent in each precious moment. Why? This would mean I am gratefully living fully, my potential in every moment. Imagine the gift, consequences and possibilities. Besides our beloved Austin, my short answer is Lake Tahoe maybe, I’m a Cali girl at heart. Wanda Gibson, Gibson Concrete LLC For some reason, I still want to live in Wyoming or South Dakota and be a fulltime cowboy. Pretty silly, I guess, but that’s the dream. I’ll settle for my 60 acres and my cows. Mike Creamer, C2 Mechanical Services If I could live anywhere? The beach is where I’m happiest. I would love to buy a house and retire in Costa Rica because it’s
beautiful – very low key and not too touristy. Sandra Johnson, Edge Electric
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hat an exciting year for the Greater Austin Contractors & Engineers Association (ACEA)! The ACEA celebrated its 35th anniversary. Jun. 14, 2018 was declared Greater ACEA day by the City of Austin, Travis County and Williamson County. -cmw
If I could live anywhere it would be the Dallas area in order to be closer to family. Kurt Schriefer Heldenfels Enterprises Inc. That’s a great question. It might be boring but I’d choose New Braunfels where I live now. It’s a great community that always has something for our family to do. New Braunfels has amazing history and culture. There’s great access to the outdoor things I love to do. It’s close enough to Texas coast and our ranch but it’s simple to get to San Antonio or Austin to enjoy the aspects of those great cities. New Braunfels is such a great place to live and raise a family that it’s no wonder it continues to be one of the fastest growing areas in the country. Chris Leonard, Bautex Systems LLC I would be right where I am now. I like where I grew up and would not move anywhere else. Malcom Wortham, Rose Electric Inc. I would like to work and live in Augusta Georgia. The place of the Masters. Dan Williams, Dailey Contractors LLC What’s wrong with Texas? You can travel south and hit the beaches. Head east and you have the forests. Head west and hit the mountains or head north and hike the canyons all in the great state of Texas. I’ve had the opportunity to move out of state. Great places to visit, but Texas is the best. Ben Cantu, Big City Access
Construction news is what we do
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JULY
Past presidents of the ACEA
Volunteer of the Year: Joe Bland
2018-2019 Board of Directors
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Austin Construction News • JULY 2018
Austin Construction News • JULY 2018
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Lookback interest Trey Hardy, CPA Lane Gorman Trubitt, LLC Dallas, TX
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ith respect to certain contracts, the Internal Revenue Service (“IRS”) requires contractors to compute and pay interest using the Percentage of Completion Method (“PCM”). This article explores why and how the IRS computes this interest.
The IRS obviously wants taxpayers to pay their taxes, but it also wants taxpayers to pay their taxes when the income is considered taxable. If the contractor doesn’t pay when the income is considered taxable, the IRS will impose interest. This “lookback interest” prevents contractors from trying to benefit from delaying the recognition of revenue — and therefore deferring their tax liability — until the end of the contract period. Understanding how contractors recognize revenue under PCM contracts helps to understand the calculation of lookback interest. Under the PCM, contractors’ recognized revenue equals the contract price times a fraction where the numerator is actual costs and the denominator is estimated total costs. Put differently, contractors under the PCM are recognizing revenue based on the costs they incur. For example, if the contractor had no expenses related to a certain contract for a period, the contractor would recognize no revenue related to that contract for that period, and therefore would have no tax to pay related to that contract. This is true regardless of whether the contractor has billed the customer. Lookback interest is computed after the project is complete by looking back at the contract’s life and determining the revenue that should have been recognized (and the tax that should have been paid) throughout the life of the contract. Since this analysis is performed after the project is complete, the IRS bases lookback interest on actual costs per year over actual total costs for the contract. Because lookback interest is computed using actual costs instead of estimated costs, a difference can arise between the amount of revenue recognized by the contractor in a given year and the amount of revenue recognized under the IRS’s lookback interest calculation for that given year. For example, if the contractor recognized less revenue in the first year of a four-year contract using estimated costs than the IRS determines should have been recognized using actual costs, the contractor will owe lookback interest on the underpayment of tax for that first year. Conversely, if the contractor recognized too much revenue for a given year,
the IRS will pay the contractor interest on the overpayment of tax. The same interest rate applies to both situations. In conclusion, the IRS imposes lookback interest to ensure that contractors are using fair estimates for recognizing their revenue (and paying their tax). If the cost estimates for the contracts are close to actual costs, lookback interest should be minimal. If the estimated costs vary from what the actual costs total, there will be lookback interest — either in the form of lookback interest due the Government or an overpayment refundable to the contractor by the Government. As always, please consult your tax advisor in order to confirm that the contractor is subject to the lookback interest calculation and to accurately determine to what contracts the lookback interest calculation applies. After joining our firm, Trey has aligned himself to be an asset to not only our firm, but our tax department as well. Trey specializes his knowledge and efforts within our Construction Group, along with working with manufacturing, distribution, and real estate industries. Some of his current responsibilities include organizing and coordinating clients’ tax data for the accurate, timely completion of individual tax returns and simple-to moderately-complex corporate, partnership, S-corp, and trust tax returns. He also prepares and reviews individual, corporate, and partnership income tax returns, as well as state income and franchise tax returns. Trey’s additional duties include being a member of the tax training committee and the further training and supervision of our lower tax staff.
Construction News ON LOCATION
Taking care of business
Senior Vice President Kurt R. Schrierfer was busy taking care of business when Construction News walked in to say “hello” at Heldenfels Enterprises Inc. in San Marcos. -cmw
Under-kicked your insurance coverage Austin Goolsby, Vice President TexCap Insurance Dallas, TX
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e’ve all heard the phrase that he or she has “outkicked their coverage” when referring to a significant other. It’s a common expression used to suggest that you, a friend or relative is in a relationship with someone they believe is out of your or their league. The contrary can be said all too often when it comes to your company’s general liability insurance. The commercial general liability (CGL) policy is provided to cover the two basic perils of property damage and bodily injury, and it’s made up of five basic parts. The declarations of the policy outline the basics that tailor’s the policy to meet the needs of your specific company or companies. Those include but are not limited to; the names of all entities insured, the limits of coverage and applicable deductibles, a description of operations divided up into classifications or class codes and list of their applicable locations, policy numbers and everyone’s favorite…premium. The insuring agreement contains the insurance company’s promise to pay on your behalf and defend your company should a claim arise during the policy term. This agreement is a binding contract between your company and the insurance company. Next up are the conditions, which cover the duties and rights of both parties, you and your insurance carrier. This section addresses your obligations to the carrier-i.e., notification of a claim or loss, non-renewals, cancellations, and the territory of coverage to name a few. In the midst of the conditions is where you can find the endorsements. These are the forms that can add or modify coverage that pertain to your individual risk. They also include the necessary forms to comply with today’s contracts like additional insured status, subrogation rights and if a waiver is included, primary-noncontributory status, a thirty-day notice of cancellation and a “per project” aggregate limit. Bringing up the rear are the exclusions, or what is NOT covered. This is the part of the policy that has all the abstract verbiage letting you know what they will not be paying for in the event of a claim. These can be a detriment to your company if they are not thoroughly explained prior to binding coverage and they can ultimately cause a company to close their doors. Some of the basic exclusions pertain to war, suits brought between named insureds (not to be confused with additional insureds), OCIPs or CCIPs, tract home work and violations of disclosing confidential or personal information. Insurance companies include these as a means to protect their liabilities from instances and scenarios
considered financially uninsurable, which are backed by years of case law, some of which is still on-going. Every carrier has their own individual guidelines on how they address specific exclusion forms but some may be able to endorse the policy and allow coverage to accommodate these limitations. Simply put, depending on the carrier, specific perils like professional liability which is commonly referred to as errors and omissions (E&O) or even pollution liability can be endorsed to provide coverage under the general liability. Other common coverages allotted for under the CGL are employee benefits liability (EBL) and employment practices liability (EPL), which are intended to protect the insured entity or entities from potential internal grievances by employees rather than a third party. This basic definition of a CGL policy is a means to educate those that spend billions of dollars a year with their respective insurance companies and insurance agencies. The time of a loss or claim is not the time to read the fine print of the exclusions in your policy. The best practice is to be proactive and look over the CGL forms before your company’s insurance coverage is bound. As previously mentioned and more often than not, a carrier is willing to remove an exclusion or even endorse the policy to include the desired coverage. If not, there are more than enough insurance companies out there that will provide the necessary coverage to operate your business. At the end of the day, we all get what we pay for, and either your carrier is insuring your risk or you are. The difference is knowing. Talk with your current agent and make sure you don’t have any unpleasant surprises at the end of your policy. Austin Goolsby is a Vice President of TexCap Insurance, an independent insurance agency headquartered in Dallas, Texas. He is one of the leading members of the construction division at TexCap Insurance and has over 8 years of total experience in the field, on the building material supply side and insurance aspects of the industry. For more information please visit www.TexCapINS.com or you can contact Austin directly at 972-720-5384 or agoolsby@TexCapINS.com.
Paving for you
Texas Asphalt Pavement Association (TXAPA) team L-R: Harold Mullins, Executive Vice President; Kaitlyn Morrison; Robin Strong-Hulse; Roy Collins; Albert Schlather, Chapter President; Emily Adams; Kelli Mofle and Chuck Fuller. -cmw
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Austin Construction News • JULY 2018
What is Safe + Sound Week?
Don’t be scared - Be prepared! Violence Issues in the workplace
Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX
Art Lambert, Partner Fisher Phillips Dallas, TX Scenario: An employee enters the job site wearing camouflaged clothing, carrying a large paper sack. The employee, who speaks to no one, has been acting strangely recently, making threats to his supervisor and fellow employees and making comments about getting even. What would you do and why is this important? Homicide is the fourth-leading cause of fatal occupational injuries in the United States, so it is an important issue to deal with. Defining workplace violence: Employers must understand the full gamut of behavior. Generally, workplace violence is any act that creates a hostile environment and/or negatively affects an employee physically or psychologically, including: • Physical or verbal assault • Threats • Coercion • Harassment Workplace violence can be caused by disgruntled employees, jilted lovers, spousal situations, stalkers, the mentally ill, people with substance abuse issues, bullies/racists and instances of robbery or murder at the worksite. Factors that can increase workplace violence: Unsurprisingly, many of the factors that increase workplace violence are stress-related. Additional factors include frustrations from poorly defined job responsibilities, labor disputes, poor management styles (e.g., arbitrary or unexplained orders; over-monitoring; reprimands in front of employees, inconsistent discipline), inadequate security or a poorly trained, poorly motivated security force, a lack of employee counseling, downsizing or reorganization, understaffing that leads to job overload or compulsory overtime. If any of these factors sound like your workplace – definitely read on. Actually, read on anyway. Employer liability for workplace violence: A company can be liable for violence at or related to the workplace if, among other things: • It failed to properly screen employees, resulting in hiring a person with a history or evidence of criminal acts. • It kept an employee after the employer became aware of the employee’s unsuitability. • It failed to provide necessary monitoring to ensure employees are performing duties. • It had inadequate measures to safeguard employees and customers from potential threats. The potential liability can be significant. How to prevent workplace violence: A number of considerations go into keeping a workplace safe. These include: • Screening (if you ask for references, check references.) • Drug testing
• Policies (have and follow the right policies) • Training (employees need to know how to act and managers need to know what to do) • Security (good security – not window dressing) • Searches (reserve the right to search and make sure everyone knows it) • Threat investigation (if you hear of a threat, act on it. If you dismiss a threat and are wrong, consequences can be severe.) • Employee assistance program (consider giving your employees an outlet to express any concerns. Sometimes just being able to complain makes people feel better.) • Discharge (plan a fair and humane termination) • Problem solving (stop and think about what your employees are saying) Common employer errors: Employers often ignore threatening behavior or even escalate risk through confrontational approaches or premature or inappropriate police involvement. Nothing heightens the tension like having a person in uniform around. Employers need to weigh the need. Peace bonds or restraining orders against irrational or desperate people can be of limited effect and may make people angrier. Employers cannot expect employee assistance programs or the like to change an employee’s personality or make all the problems go away. Failing to document misconduct can allow an employee to think he/she is “getting away with it.” Plus, it creates a situation where employees are surprised when disciplined for misbehavior, which should not happen. Develop a workplace violence prevention program: OSHA requires, in many cases, a written emergency action plan, kept in the workplace and available for employee review; however, employers with 10 or fewer employees can communicate the plan orally. Training is key so employees understand their roles and responsibilities in an emergency. An emergency action plan should address issues specific to your workplace. The annual fire drills companies have are shown to be effective when a fire occurs. Why not have a safety drill? It cannot hurt, and look how much it could help. Art Lambert is a partner in the Dallas office of labor and employment law firm Fisher Phillips. He can be reached at (214) 220-8324 or alambert@fisherphillips.com.
Safe + Sound Week is August 13-19, 2018 A nationwide event to raise awareness and understanding of the value of safety and health programs that include management leadership, worker participation, and a systematic approach to finding and fixing hazards in workplaces. Participating in Safe + Sound Week is easy. To get started, select the activities you would like to do at your workplace. You can host an event just for your workers or host a public event to engage your community. Below are examples of potential activities and tools to help you plan and promote your events available. After you’ve completed your events, you can download a certificate and web badge to recognize your organization and your workers at https://www.osha. gov/safeandsoundweek/ Management leadership is a demonstrated commitment at the highest levels of an organization to safety and health. It means that business owners, executives, managers, and supervisors make safety and health a core organizational value, establish goals, provide resources, and set a good example. Here are a few ways you can show management leadership during Safe + Sound Week. • Deliver a safety and health message • Establish a visible presence to promote safety and health • Formalize and publicize your commitment to safety and health) • Take your commitment to safety and health beyond your organization) Worker participation is meaningfully engaging workers at all levels in establishing, implementing, evaluating,
and improving safety and health in the workplace. This means workers understand they are a valuable partner in making their workplace safer and are encouraged and able to communicate with management about hazards on the job. Here are a few ways you can engage your workers during Safe + Sound Week. • Show you are listening and ask for feedback • Empower workers with safety and health information •Recognize workers or teams for contributions to workplace safety • Partner for safety and health planning A systematic approach to finding and fixing hazards is a proactive, ongoing process to identify and control sources of potential injuries or illnesses. This means establishing procedures to collect and review information about known or potential hazards in the workplace, investigating the root cause of those hazards, and prioritizing hazard controls. Identifying and correcting these hazards before someone gets hurt ensures that workers go home to their families safe and sound after every shift. Here are a few ways you can find and fix hazards during Safe + Sound Week. • Spotlight hazards and controls • Create challenges, contests, and competitions • Evaluate safety and health processes and systems • Conduct analyses to identify hazards natarajan.joann@dol.gov 512-374-0271 x232
Industry FOLKS Teresa (Terri) Parker Comptroller Commercial Flooring Systems Austin, TX
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er honest choice of words describes who she is and how she got to where she is today. Teresa Parker was in a construction office as early as 18 years old. Indeed, she started at a time when women were “a little timid.” Parker shared,“ “I definitely had to prove myself, you know being a female.”
Her and her husband share a love for music. They both come from musical families. Right now Parker is learning the violin and mandolin.
Parker remembers when men asked her questions; they were hesitant until they knew she knew her stuff. “Then they would call and only ask for me,” she innocently laughed.
Sometimes her days are spent with their grandchildren. “The grand kids are over quite a bit and they help me do my gardening.”
After being in the construction world for almost 30 years now we must mention that she is also a true Texan, born in San Antonio and raised in the South Texas area on ranches. “Castroville is where most of my family is from.” She expresses the love for her family, having started a family early. Today she is a wife, mother and grandmother. She has six children altogether (three of her own) and seven grandchildren.
Yes, Parker also enjoys gardening vegetables and plants. Having grown up on a ranch, she lived 50 miles from the nearest town. “So, unless we didn’t raise it or grow it, we didn’t have it. You learn how to grow different varieties of things whether it is vegetables or plants in South Texas weather.” After working at Commercial Flooring Systems for six years her coworkers have tasted her fruits and vegetables. Just last year she brought in zucchini, squash and tomatoes. She loves to share, she honestly expressed. –lv
Austin Construction News • JULY 2018
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and the cleanest rigging. Why would you want any other outboard? And that’s not all. In addition to the extreme durability, the engine comes with the industry’s best warranty and maintenance schedule to give you the ultimate peace-ofmind. So I know your probably thinking that I’m full of bull shrimp and I’m only saying this because I get a deal on a boat. Don’t take my word for it. Call me and I’ll take you on a demo ride. Then you will see why the 23 Shoalwater Cat is the hottest boat on the Texas Coast. My 2018 calendar is now open for bookings for the fall fishing season. The months of September and October are truly two of the best months of the year to fish. To schedule your next bay fishing trip or hunting adventure, give Capt. Steve Schultz a call at 361-813-3716 or 361-334-3105 or e-mail me at SteveSchultzOutdoors@gmail.com. Good Luck and Good Fishing.
Ultimate fishing machine by Capt. Steve Schultz Sponsored by: Waypoint Marine, Shoalwater Boats, Evinrude Outboards, Fishing Tackle Unlimited, E-Z Bel Construction, Costa Sunglasses, Diawa Reels, Simms Fishing, ForEverlast Fishing Products, Interstate Batteries, MirrOlure, and AFTCO Clothing.
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here are literally thousands of fishermen that fish the coastal waters of Texas. Each of these anglers may possess their own individual idea of what constitutes the “ultimate fishing machine.” It’s no different than choosing a car or truck to drive. Everyone of them will get you down the road, but some there will take you to places that others can’t get to. This season, I was given the opportunity to run a boat that is not totally new to the waters of the Laguna Madre, but certainly new to this captain’s style of fishing for over 20 years. Since day one in September of 1998, I have chose a V-style bottom fishing platform for my charters. This decision came pretty easy because of the ride and comforts a V-bottom boat produced, and I was conscious about keeping my customers comfortable. Needless to say, I was surprised when I launched my new Shoalwater Cat hull early this fishing season. Everyday I push away from the dock, I can’t help but smile as I ease the throttle forward on this awesome fishing platform. This boat opened up the entire bay complex for myself and clients to explore, without giving up any comfort or speed. No, my Shoalwater is
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David Biesenbach and Joey Farmer put together a nice box of fish last month fishing with Steve Schultz Outdoors.
not the fastest boat on the water, and there may be a few boats that have a few more bells and whistles than a Shoalwater, but I can assure you that you cannot find a more all-around fishing platform for the in-shore waters of the Gulf of Mexico. I’ve been fishing for four months now from my Shoalwater Cat and everyone that has been on the boat has been so impressed with the ride, speed and comfort. One of the things that has always been a concern with low profile cat style boats is the ability to stay dry on cross
chop conditions. Let me assure you that my 23 Shoalwater Cat is dryer that most of the V-bottom hulls I have run in the past. This is another complement I get when we have to cross Baffin Bay from the north shoreline to the south in the middle of the day. As for the power behind my Shoalwater, it was a no brainer after running the Evinrude G2 on my last two fishing rigs. From the best fuel economy of all the outboards I have run over my 20-year career to the smoothest steering system
A muddy good time
n Jun. 9, Construction News editor Lexie Velasquez said yes to the No Mud No Glory 5k Spartan Race in Laredo, TX. Although she was familiar with a 5k race, the obstacle portion was unfamiliar territory, not to mention the mud. “It felt empowering to push oneself and have fun at the same time,” she said. Her and her team managed to complete each obstacle. –lv
Lexie landing after climbing the military wall.
Shimming across a rope over a pool of mud.
Lexie (right) and her cousin Diandra all smiles after completing the entire race.
www.constructionnews.net publishing the industry’s news
Lexie pushing herself to get through the tire obstacle (and not fall).
Texas Style
★ ★ ★ ★
San Antonio Austin Dallas/Fort Worth Houston
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Austin Construction News • JULY 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
Lake life pioneers
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t’s kind of funny to think about because it just seems so natural now, but do you realize that once upon a time here in Texas we really didn’t know what to do with a lake? According to www.brazos.org, there was only one natural lake in Texas, Caddo Lake, and it was formed by an accidental log jam. In Texas the usual way of water is for it to get dumped from the sky and you better catch it quick before it runs off. Here in the Hill Country of Texas in the 1930s, a grand experiment was underway, just like the one in the Tennessee Valley. People always had a love – hate relationship with their rivers. The water brought life, possibility and an avenue for travel and trade. The flip side though was the nasty fact that rivers also brought deadly floods that had a bad habit of washing away towns and anything else that tried to get too close. Finally someone had the idea that it was time to tame the rivers with dams to control the flooding, hold the extra water for dry times and make the water that did pass through churn out a new commodity that the nation was suddenly so hungry for – electricity. Before long a lot of farmers and their families were standing on the shorelines of new lakes instead of in the fields that had supported them for so long. Some of them moved to the cities to find work and built new lives and some stayed put and adapted to lake life becoming a new kind of pioneer. The old boys who didn’t leave knew from living near the river how to build simple wooden boats and how to river fish. The lakes were wider and rougher, but they were learning and newfangled outboard motors were getting more common. It wasn’t long before World War II ended and our country welcomed home
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ow this is what we like to share. The SERVPRO of San Marcos team recently took a company fishing trip to Port O’ Connor, TX. Owner, Darby Wright and some of his team members took kayaks and a jon boat to fish the area. There was success with redfish and trout. Wright said, “We also had several days of guided fishing, where we caught bull redfish (all released) and some big sharks.” Several that were caught were harvested and the meat was donated to local San Marcos families, “who are in need of this rich source of protein,” said Wright. SERVPRO Ladies, you’re next! Wright also shares that the next fishing trip is for the office, sales and production ladies. “Us guys hope they don’t top our fishing success, because we’ll never hear the end of it,” Wright jokingly added. -lv
In the beginning
our returning heroes. We no longer needed to manufacture a stream of war planes, but we had companies with aluminum and the workforce who knew how to meld it into the sleek aerodynamic lines for flight. To stay in business and help people keep their jobs, they turned to making boats – wonderful boats that were just the welcome diversion so many servicemen dreamed of enjoying if they ever got to come home to fish again. That is the beginning of the spectrum of boats you see today. Think about what it was like for our lake pioneers. Before them there were no water skis, wakeboards or fancy specialized boats. They were just a bunch of river rat farm boys looking for fun and having to figure out things as they went along. That’s what makes talking to any of these old timers so interesting. Nobody did this stuff before, no one could teach them, it just all started with, “What if we…” Next time you are at the lake with the jet skis whizzing past and the wake boats thumping by and the center-consoles cruising along, think about the humble farm boys who had lost their way of life and found a way to channel their loss and confusion into the boating lifestyles we still love to this day. In Memory of Max Alexander, 1932 2018
Half or Full Day Fishing Trips All Bait, Tackle & Equipment Furnished Your catch Filleted and Bagged for You Furnish your TPWD Fishing License & Refreshments, and WE DO THE REST!
S&D Plumbing on fishing trip in Taylor, Tx
Ken Milam Guide Service (325) 379-2051 www.striperfever.com
Resourceful catch
Craig McCrary, sales manager holds a shark by its fin on the side of the boat.
Darby Wright holding a speckled trout.
Will Bryan, production manager with a hammerhead shark.
Lee Roy Alcala, production team member holding two sheepsheads.
Austin Construction News • JULY 2018
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Ride for freedom
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pproximatly 800,000 motorcycles rolled into D.C. from around the country for the 31st annual Memorial ride on Sunday, May 27. The ride begins at the Pentagon, through DC, then onto Potomac Park by the Lincoln Monument. Thousands of spectators lined the streets along the route to observe this spectacular event, waving flags and remembering what Memorial Day is all about. It’s a great place to be to celebrate our military veterans and the fallen. Construction News’ Dana Calonge and Reesa Doebbler rode along as guests with our designated escorts. To view a video of Rolling Thunder, go to www. rollingthunderrun.com and scroll down to video.
Doebbler (left) with escort from Michigan and Calonge with escort from New Jersey
That famous Marine who stands in salute during the entire procession. Veterans salute him as they pass by.
Staging at the Pentagon in two parking lots.
Construction News in the Big Apple Vacation flashback
Check out President of 21st Century Painting & Roofing Gary Gibreal with his wife and kids on their trip to South Africa during Christmas. –lv L-R: Gary, Jordan, Janette and Amanda Gibreal.
Construction News’ editor, Melissa Jones-Meyer and son Avery, take in the sights in New York’s famous Times Square.
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Austin Construction News • JULY 2018
A rash decision
4th of July Celebrating Independence Day
L-R: Donavan Collins (manager), Debora Lobo-Collins (estimating department), Rigoberto Lobo (owner), Ellery Leiva (owner)
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igoberto Lobo is allergic to his work in the stucco industry – literally! – but the opportunity to work with his family is worth the risk. “My family is from Honduras; I came here 10 years ago to Texas. We started as laborers and learned step-by-step about the stucco while working for big companies,” Lobo says. “My brother, Franklin, was the first one in our family to work in stucco, and I went with him to work for six months. I got an allergic reaction on my skin to the wet concrete, so I left the work and began working with heavy equipment.” Three years ago, Lobo returned to work with his brothers (avoiding all contact with wet cement this time) and helped formed their company, now known as Leiva Lobo Stucco Services LLC. Today, the business includes Lobo’s dad Rigoberto Sr., brother Ellery, sister Debora and his brother-in-law.
Lobo’s favorite project was stuccoing parts of Killeen for the filming of the National Geographic miniseries “The Long Road Home” about the 2004 “Black Sunday” ambush. Lobo and his team scored the job when someone from the production in Fort Hood called them to inquire about using their plaster pump. “We were proud to do that job and to know about these people who died,” Lobo says. “It was a really exciting experience for us and we learned a lot.” While more work means more wet cement to react to, Lobo is sure he and the company can handle it. “We keep busy; people know who we are and what we do and we want to grow as a company,” Lobo says. “We keep working and try to do our best to make the customers happy.” Subcontractor Leiva Lobo Stucco Services is located in Austin. –mjm
A day that represents the signing of the Declaration of Independence and the birth of the United States of America as an independent nation On July 4, 1776, the thirteen colonies claimed their independence from England, an eventwhich eventually led to the formationof the United States. As of July 2018, the United States is 242 years old.
Austin Construction News • JULY 2018
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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
Safety is key! David Hittinger, Director of Safety, Codes and Standards Independent Electrical Contractors Alexandria, VA
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lectrical contractors work in a very competitive electrical construction industry. Electrical workers must be trained in safe work practices and National Electrical Code (NEC) compliant installations. Jobsite conditions can vary with tight scheduling demands affected by special equipment, such as lighting, generators, and distribution equipment. This special equipment must be timely in tion (NFPA). The primary function of the delivery, which includes planning for NEC is to safeguard people and property weather-related delays that can affect the against electrical hazards. The NEC is one completion date when installing electrical of the most widely used and recognized consensus standards in the world. It is a systems. Regardless of any job challenges, true consensus standard because memjobsite safety is paramount and installa- bers from throughout the electrical intions must meet the NEC minimum re- dustry contribute to its development. quirements. States or municipalities may The NEC is updated every three years to adopt the current 2017 NEC and some reflect current trends in the electrical inamendments may occur. It is recom- dustry. mended to check with the local authority The 2020 NEC has moved beyond having jurisdiction before doing electri- the first draft stage with some significant ideas for change. The next step in the cal work. The NEC is sponsored and controlled process is the public comment stage, by the National Fire Protection Associa- which is when the NFPA will be accepting
Programmable switching Kenneth W. Hengst, Branch Manager 4C2 Electrical Associates Houston, TX
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native of Houston, Hengst began his electrical trade career in 1974. He became a Journeyman in 1977 and then progressed to a Houston Master Electrician (HMEL 205) in 1990. His career has covered industrial, aviation and commercial installations throughout the greater Houston area, combining hands on and management roles. He is a principle member for the IEC on Code Making Panel 8 and a member of UL STP 5 and 6 along with a number of other committees working to enhance the electrical contracting and installation industry. How would you describe the state of the construction industry in general terms? I would say it is steady, but not spectacular. Health Care is active and new light industrial is slower than the recent past. In my older neighborhood, restaurants and small commercial ventures are very active. Have you experienced an increase or a slowdown in business? We have seen an increase in revenue and backlog, led by capital improvements to existing facilities by our customers.
What factors are driving this increase/ slowdown? In my opinion, the increase is due to a better business environment. Higher sales are leading to the confidence to repair or replace aging equipment. What are the “hot button” issues in your industry? There are three “hot button” issues in the electrical industry. The first is maintaining and training a competent workforce. The second “hot button” issue is safety compliance. And third, payment terms which are trending longer.
ELECTRICAL INDUSTRY Sep: Green Building Nov: Architecture & Engineering Oct: Specialty Contractors Dec: Construction Equipment
comments for the technical committees to act on when they reconvene in late October 2018. Some important topics that were reviewed at the first draft meetings include new language that would address electrical hazards associated with installations supplying shore power to ships and watercrafts, including monitoring of leakage current. The Scope of Article 100 recognizes that definitions are also found in the XXX.2 sections of other articles. There are some new defined terms, such as Bonding Jumper, Supply Side, Inverter Input Circuit and Inverter Output Circuit. The Hazardous (Classified) Locations defined terms will be located in a new Part III in Article 100, including new definitions for Aircraft Painting Hanger, Encapsulation “M,” Intrinsic Safety “I,” Outdoor Spray Area Protection by Enclosure “T” and Unclassified Locations. A correlating committee-appointed task group was assigned to improve the usability of Chapter 7 and 8, specifically the Articles that fall under the purview of Code Making Panels 3 and 16, to remove redundancy within these Articles. Several changes resulted, including a new gen-
eral requirement for Cables and Conductors new section, 110.12(C). A new Article 800 was developed which would relocate numerous Chapter 8 redundant text in one location. All of the proposed changes are subject to public review in the public comment stage that will be available on the NFPA website beginning July 6, 2018, and will close on August 30, 2018. Anyone can help improve the next edition of the NEC by submitting a public comment. V i s i t www.nfpa.org for a complete review of the next edition – 2020 NEC. Want to learn from many more industry experts? Join thousands of electrical and construction professionals at IEC Convention & Expo 2018 in Indianapolis, IN, on September 19-22, 2018. Take your business to the next level with latest products, trends, and business strategies. www.iecconvention.org.
What is the most significant challenge your industry faces? (i.e. labor shortage, other) Improving the productivity of our limited workforce is the biggest challenge in our industry.
While we are in the first full year of compliance with the 2017 National Electrical Code, expanded use of arc-fault devices and the addition of several new articles in the 2020 edition of the Code will require all contractors to stay current with continuing education.
Do you see an increase in the number of outside contractors coming to the area? No, I have not. The local workforce is very competent and while other parts of the country have been lagging, the Houston area is enjoying resurgences of their own. What are the costs increases relating to your industry? Steel conduit and all of the associated fittings have gone up as much as 40 percent this year and many of the commodities we purchase have been affected as well. What is on the horizon for your industry? (Changes in technology; equipment; other) Increasing worker safety in existing facilities by advances in ARC-Flash technology. Have there been any significant code changes in the past year? Or regulations?
Established in 1957 and headquartered in Alexandria, VA, the Independent Electrical Contractors (IEC) is an electrical trade association representing more than 3,300 members. -cmw
With the emphasis on green building, what is the most environmentally friendly change relating to your industry? Programmable switching and the expanded use of LED lighting system controls have to be at the forefront of environmental changes. In addition, advances in the solar power generation are a close second. What are keys to being successful? The keys to success for me are Integrity, a competent workforce and the willingness to practice servant leadership. 4C2 Electrical Associates is a Dallas based company who specializes in installation and maintenance services for industrial. -cmw
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Austin Construction News • JULY 2018
THIS TH MON
ELECTRICAL INDUSTRY
To represent your company in an upcoming FOCUS, contact Austineditor@ConstructionNews.net (210) 308-5800
NEXT MONTH (AUGUST) SERVICE PROVIDERS
Current flow of electricity Les Moynahan, Executive Manager National Electrical Contractors Association (NECA) San Antonio, TX
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s July approaches, I will be coming up on my 22nd year serving as the Executive Manager for the South Texas Chapter. Much has changed over the years but change continues to accelerate at a faster and faster pace. Our chapter remains active in developing research projects through ELECTRI International (our research council).
We attended and participated in our recent legislative conference. At the conference, we had dinner with Congressman Henry Cuellar and Senator Ted Cruz who attended our opening reception. The Chapter continues to be an intricate part of Cross Border meetings (this year in Roatan, Honduras). Our relationship with our partners in Labor is also strong and vibrant. 2018 is shaping up to be a great year and the foreseeable future also looks good. How would you describe the state of the construction industry in general terms? Have you experienced an increase or a slowdown in business? I would describe the overall construction industry, as a whole, healthy and areas like infrastructure upgrades might even be described as robust. The
past five years have been good and the work picture for the next three to four years continues to look good. New tax laws, infrastructure upgrades, a strong global economy and a business friendly state like Texas are bolstering our industry. As we all know, Texas is a business friendly state and it continues to draw new business from other states that are not business friendly. Also, there has not been an unusual amount of contractors coming into our market from other markets. In talking with my counterparts around the country, the work picture seems to be good everywhere. What factors are driving this increase/ slowdown? There has been a strong interest in apprenticeship programs and with the
Sustainable electricity Don Watson, President/Owner Watson Nunnelly LLC San Antonio, TX
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on Watson started in the electrical business in the field as an apprentice at Alterman Electric in 1994 and worked his way up to Project Manager. Three and half years ago Watson decided to start his own electrical business and it has been quite a ride! “It is amazing how my network of friends and clients that I have built over the years have helped me build this company! It has and continues to be fun to do business with the people you want to do business with and not just bidding every job, but hoping to get something with someone you don’t know. I have been very blessed!” How would you describe the state of the construction industry in general terms? The construction industry is booming! It’s an exciting time to be in construction. Have you experienced an increase or a slowdown in business? Yes, I have definitely been experiencing an increase in business. The challenge for me is to not take on more projects than I can manage. What factors are driving this increase/ slowdown? We have some of the fastest growing areas in the country such as New Braunfels, Hays County, Boerne, as well as San Antonio. Texas is the place to be in construction right now. What are the “hot button” issues in your industry? Sustainable construction is affecting the construction industry as a whole. The electrical industry is no exception. There has been an ongoing push for energy efficiency and renewable energy and while most of these changes are on the design side of the business, we have to learn to implement them. What is the most significant challenge your industry faces? (i.e. labor short-
age, other) The biggest challenge we have is finding skilled labor. We, along with the IEC, are constantly working with local high schools to educate our youth about the construction industry and the benefits of learning a skill. Do you see an increase in the number of outside contractors coming to the area? I do see an increase in the number of outside contractors coming to the area. With all the construction going on, many companies are coming in to take advantage of the growth. I don’t much worry about them taking our share of the work; they just tend to try to take our manpower offering more money, trucks and promises. At the end of the day, most of these contractors don’t stay and the electricians are back at our door asking to get their old job back.
cost of college being so expensive (and student loan debt being at an all-time high), this career pathway is drawing interest. High school counselors are finally starting to realize that a college education is not for everybody as are students and parents. Alternatives to college have been missing from the high schools for many years. What is the most significant challenge your industry faces? There is an increased emphasis on increased recruiting efforts, leadership development in the field and office. One of our most significant challenges is finding and retaining skilled workers and particularly skilled supervisory employees. There is a need to focus on training for all levels for the skilled trades. What is on the horizon for your industry? (Changes in technology; equipment; other) Technology is going to be the most important driver for the future of electrical contracting. The internet of things, artificial intelligence, smart buildings, human augmentation and even drones are impacting how we do business and this is only going to come at us at a faster pace going forward. There was a recent article on the MySA website that highlighted the fact that an Austin company is 3D printing small houses in order to provide
these systems function. Electricians are used to light switches that run on 120– 277 volts and turn the fixtures “on” and “off.” Now a lot of the lighting systems are utilizing low voltage controls that are installed with Cat5 cabling. Lights come on as you walk into the room and go off when you leave. Then as the sun comes through the windows the lights dim to the correct lighting that the office needs, utilizing natural light mixed with LED. All cool stuff just new to the industry. I think that is one of things that I like about being an electrician; it never gets stagnant, we are always learning. Have their been any significant code changes in the past year? Or regulations? As I have already mentioned, the In-
housing for the homeless. They are able to print these small houses for around $4,000 per house. Single-story, 600– 800sf homes can be printed in less than 24 hours. With the emphasis on green building, what is the most significantly friendly change relating to your industry? The electrical contracting industry continues to become more and more environmentally friendly. There has been a continuous improvement of energy efficient lighting and controls like LED and development of power over the ethernet to power and control lighting. As systems continue to develop and utilize more “smart building” technology, this trend will continue to improve. What are the keys to being successful? There are several keys that are going to be needed by electrical contractors in order to continue to be successful. Succession planning, leadership development, strategic planning and adapting to and embracing the latest technology are just a few of those keys. The National Electrical Contractors Association (NECA) is an electrical trade association. -cmw
ternational Energy Conservation Code is a significant change. With the emphasis on green building, what is the most environmentally friendly change relating to your industry? LED lighting has reduced the cost of energy significantly. City Public Service is offering rebates for owners to change out their existing lighting to LED to help reduce the power draw on their system. What are keys to being successful? I truly believe that the key to being successful it to do what you say you are going to do, when you say you are going to do it. Watson Nunnelly LLC is an electrical contractor in New Braunfels, TX -cmw
Business never stops
What are the cost increases relating to your industry? Steel has doubled in price since the first of the year and copper has increased significantly in the last few months. Projects that I bid a few months ago are no longer in budget. What is on the horizon for your industry? (Changes in technology; equipment; other) The international Energy Conservation Code has been adopted by Texas. This mainly affects lighting and lighting controls in the electrical world. You are seeing more LED lighting, occupancy sensing technology and daylight harvesting being designed into our projects. We constantly have to train our team to make sure we are up to date with how
Tim Kunz, VLK Architect and Trey Swor, Joeris General Contractors visit during a Bautex demonstration and tour at the plant in San Marcos. -cmw
Austin Construction News • JULY 2018
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Tiling Arizona
The haul guy
t took a rather large memento from Nelson Travers’ optical retail years for him to see another calling. “I had an optical business in Louisiana which we closed after the hurricane, and I ended up with a heavy, old optical chair that you sit in during exams,” Travers explains. “We moved to Alvin, TX, I took the chair with me and put it in storage for a couple of years. Finally, it was time to get rid of it and I kept calling around but nobody would help me. I ended up renting a U-Haul truck and doing it myself. I figured that would be a nice business to go into someday, to pick up stuff from people’s houses or construction debris and get rid of it. I kept it in mind; eventually I moved Nelson Travers, founder of Gorilla to Austin, I established the Junk Removal business in 2010 and changed the name to Gorilla Junk Removal I’m getting some exercise, meeting new people, and every job is completely in 2013.” Travers has enjoyed the company’s different. That’s what I enjoy the most.” rapid growth and hopes to expand the One thing Travers admits hasn’t business, franchise it in other cities and changed is his own tidying habits, add small demolition services. Travers despite hauling roll-off heaps daily. “My wife would probably complain to has also enjoyed the changes switching you that I don’t want to do anything businesses has brought. “I worked in a retail environment, so around the house after that all day long. I was always indoors; I love being The last thing I want to do is clean up outdoors now,” he says. “I’m on the road around the house!” Travers says, laughing. Service provider Gorilla Junk Removal all of the time; we service between north of Georgetown to San Antonio. is located in Austin and Buda. –mjm
A
Heather Gray (2nd row, far left, blue shirt), branch manager of Arizona Tile’s Austin office, with her ace back office/support staff.
rizona Tile started in San Diego, CA, by Heisman Trophy winner John Huarte in 1977. The corporate office is now in Tempe, AZ. One of the 25 store locations in the western United States is in Austin, where Heather Gray manages her crew in commercial and residential makeovers. If you can imagine it, they can make it for you. Aided with “amazing” digital imagery tools, a customer can see their space with all the options of stone, glass, porcelain, ceramic, granite, limestone, quartz, and a new product called R11--an anti-slip finish that’s great where moisture is possible. Gray hails from the Texas Panhandle. Her first stint with Arizona Tile was in its Dallas location, working in sales.
After several years there, she was transferred to the brand new Austin branch, opening it up in 2017. Believe it or not, senior living is big business, and Arizona Tile has worked with those facilities to make them just right for the various stages of aging. Gray has worked on hotels and multi-and single-family buildings. Gray said the cooler colors are popular now, with taupes and grays in all their shades. But, she can deliver any color, any time. Gray is just getting underway with the Austin branch of Arizona Tile. With Austin being the vibrant community it is, she sees a bright and long future there. Arizona Tile is commercial and residential tile and stone contractor in Austin. -dsz
On the road again
Heading back
Construction News caught up with Crane Operator Ryan Deichmueller for Texas Crane Service as he gets his crane ready to hit the road in Buda. -cmw
Construction News runs into TexMix Driver, Paul Gamez on his way back to the TexMix Plant in San Marcos, TX. -cmw
Construction News ON LOCATION
Paying a visit
Ja-Mar Roofing & Sheet Metal President & CEO David Phillips poses for a photo when Construction News stopped in to visit. -cmw
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Austin Construction News • JULY 2018
JOB SIGHTS
Marcos Rosas, Jose Rosas and Oscar Molina with Danco Construction Inc. at the new Stonite Surfaces Showroom project in San Marcos. Latitude Construction LLC is the general contractor and Link Architecture is the project architect. -cmw
continued from Page 1 — Mind of his own Today, Gibreal now has around 25 employees working for his residential and commercial painting, roofing and siding company. The service area includes the entire central Texas area. On the commercial side of business Gibreal has established a strong relationship with two local school districts. Their time to service is throughout the summer. “Whenever school is out we are working and we’ve been doing that for about 15 years,” said Gibreal. Austin, TX is where Gibreal wants to keep his business. As far as expansion goes, him and his team hope to expand into more commercial painting and roofing. And because Gibreal enjoys Austin, he and the company have given back. At one point in time Gibreal said he sponsored one of his painters who was a soccer coach. Gibreal has also sponsored a youth football team that his son played on. “He’s got the old jersey from back then,” with the company logo on it. Then, Gibreal recalls a compelling story from that time. He said, “A neat thing we did that we had never done be-
fore was for the youth football team.” They had painted somewhere short of 100 helmets for the entire team. “We brought them into our warehouse and I had six of my painters who worked with me for a long time volunteering about a day and a half of free labor to the organization to come in to prep and paint all the helmets a kind of gold color.” Gibreal and his team used automotive paint, “that’s something we don’t do, but we searched youtube and learned how to do it – then we set them all up.” Yes, all of them. Gibreal then said all the kids who were from ages six to 13 had bright shiny gold helmets. He thought that was pretty neat. Gibreal is a dedicated owner who was once unsure of what to major in. But to think that if had he not taken that year off, or if he had not hired his first salesman, there would be no 21st Century Painting & Roofing. 21st Century Painting & Roofing is a painting, roofing and siding contractor in Austin, TX. –lv
continued from Page 1 — Written in stone
B. Robinson Inc.’s David Gambrell and Clayton Harbison install fiber optic and copper cabling for Century Link at the new Midway Commerce Park, San Marcos, TX. -cmw
Outside the Hat Creek Burger Co. jobsite, Construction News caught up with trim installer Carlos Ruis, Hart Installation. -cmw
One of the most popular items customers want is quartz counter tops. Quartz comprises about 75 percent of his sales as people like having a solid color. But one of the big sellers these days is in the luxury vinyl tile (LVT) market. Delarosa said that laminates have come a long way in their quality from its early days, as has other wood-looking tiles and planks. “Technology has done such a heck of a job that some [flooring], you can’t tell until you actually get down and feel the material.” Other technological changes from Dela’s earlier days are in the machines used to process the various shapes and forms. New cutting machines can do it all in faster-than-ever time. “Everything is automated,” Delarosa said. Once the specifics are programmed into the cutting machine, it does the rest, like cutting the sink area out, all the fixtures holes, the corner designs, and even polishes the material. Technology also aids in the customer being able to see the final product when picking everything out. Computer software is such that the customer can see his kitchen or bathroom or floor with all the options. Nice. Most of the stone material he uses comes from overseas: 80 percent from Brazil, while marble comes from Italy and India, some Spain and Israel. Most of the hard wood comes from China. Before he commits to a job, Delarosa makes sure he can get enough of what the customer wants in terms of color, style in material. Right now, there are no plans to expand beyond his reach, as business is go-
ing well. And, when that time comes when Delarosa just wants to relax and take in all of Austin’s charms, he said the company can go do his daughters “if they want it.” Delarosa’s father was in the Army; hence, he moved around a lot. He grew up in Michigan, went to high school in Florida, and finally settled in Texas. As the owner of Dela Tile and Stone, he has found his niche in providing quality stone, tile and wood products for residential and commercial use. He took his uncle’s advice to get into the construction business, then used his MBA to start his own company. Simply put, it’s no more “bread and baloney” for him. Dela Tile and Stone is a full service kitchen, bath and floor remodeling company in Austin. -dsz
continued from Page 1 — Aging bridge gets facelift
Aldo Jimenez, Lampa Fake Grass arrives at the Hat Creek Burger Company jobsite in San Marcos just in time for a photo. -cmw
lower the city’s maintenance costs. Prior to the new bridge, this stretch of the Trail had remained the same for roughly 40 years. The outdated infrastructure was replaced with a new 14-ft. wide concrete and steel structure that extends over the water similar to the Boardwalk (Jay-Reese Contractors also built), which The Trail Foundation completed in 2014 in collaboration with the City of Austin. This was no ordinary project for several reasons. First, it was built on and around an active pedestrian trail. Secondly, the bridge was built under the largest North American population of Mexican free-tailed bats, so there was a lot of care and preparation to keep the bats safe. Project Manager Derek Eckhoff, Superintendent Rodrigo Lamas Marquez, and engineering and architec-
tural firm, Freese and Nichols Inc. worked with the Austin Bat Refuge to ensure the population was not disturbed. Lastly, the bridge was built with sole access being by water from barges. True partnership was used to describe the positive aspect of the working relationship with The Trail Foundation, City of Austin, project architect/engineer and the Austin Bat Refuge. “We had a true problem solving partnership with every entity involved. The project was able to accelerate due to the effective communication, teamwork, and quick resolution of obstacles to our progress,” says Darcy Albee, operations manager, Jay-Reese Contractors Inc. Jay-Reese Contractors Inc. is a full-service general contractor in Dripping Springs, TX. -cmw
Austin Construction News • JULY 2018
Page 17
Association Calendar
Content submitted by Associations to Construction News ABC
Associated Builders & Contractors
Jul. 13: Central Texas STEP Application Deadline for EIC. For more info, contact Amy Grace Torres at 512-719-5263 or email amy@abccentraltexas.org Jul. 13: ABC National STEP Application Deadline for EIC. For more info, contact Amy Grace Torres at 512-719-5263 or email amy@abccentraltexas.org ACEA
Greater Austin Contractors & Engineers Assn.
Jul. 12: Membership Luncheon, Dave & Buster’s, 9333 Research Blvd., 11:30am. For more info, go to www.aceatx.com or call 512-893-7067. AGC
Associated General Contractors
Aug. 1: TopGolf Networking Event, 2700 Esperanza Crossing. For more info, contact Toni Osberry at 512-442-7887 CTMCA
11:30am-1pm. For more info, contact Wendy Lambert at 512-255-6373 or email wendy@ctsaonline.org DACA Drywall & Acoustical Contractors Assn.
Jul. 19: Membership Meeting
Never too hot
E
ven though it was hot Jun. 1, the Central Texas Subcontractors Association (CTSA) had a great turnout for their annual golf tournament with 28 teams! The players from BJ Electric pooled their money for the ball drop and won $427 cash! The event was held at Star Ranch in Hutto. –cmw
MCA
Mechanical Contractors Assn.
Jul. 11-14: Annual Meeting & Products Show, Hyatt Regency Los Pines Resort & Spa, 575 Hyatt Loss Pines Rd., Lost Pines, TX. For more info, call 281-440-4380 NARI National Assn. of the Remodeling Industry
Jul. 11: General Membership Meeting, Harway Supply, 2209B Rutland Dr., #100, 11am-1pm. For more info, contact Kayvon Leath at 512-375-2601 Jul. 25: WIN – Women in Nari, Waters to Win, 3300 W. Anderson, 5-7pm. For more info, contact Kayvon Leath at 512-3752601
Central Texas Masonry Contractors Assn.
Jul. 26: General Meeting, Location TBD, 12pm. For more info, email Joe Campbell at 254-404-2270 CTSA
Central Texas Subcontractors Assn.
Jul. 10: Lunch & Learn, Salt Traders,
Winners: 1st Place: – Rand Construction 2nd Place: RSM US 3rd Place: Schmidt Electric Closest-to-the-Pin Hole #4: Travis Kelley Closest-to-the-Pin Hole #7: Shawn Young Closest-to-the-Pin Hole #12: Gabe Rhodes Closest-to-the-Pin Hole #15: Travis Kelley.
1st Place – Rand Construction
NAWIC National Assn. of Women in Construction
Jul. 20: Clay Shoot, Reunion Ranch, 850 CR 255, Georgetown, TX. For more info, contact Misti Shafer-Webb at mshafer@ complianceresourcsinc.com
Construction News ON LOCATION
Electric welcoming Dead Ass Last Winner – Texas Fifth Wall Roofing
s
Submitted to Construction News
Round-Up
Mackey Fair, Lee Seunghyun “Lee” Lee, Jon Jones, Vice President Russell Johnson, President Sandra Johnson and company mascot, Chief, welcomed a visit from Construction News to Edge Electric. -cmw
Golfing with ABC
O’Connell Robertson is pleased to announce the promotion of Ron Meyer, AIA, to Principal. Meyer will serve as the project delivery leader for the firm, a role requiring strategic planning to implement the firm’s architectural goals; technical leadership guiding the best documentation practices; and resource management to support overall project scheduling and staffing assignments. He is a graduate of Texas A&M University with a Master of Architecture and is a registered architect and NCARB certified. -cmw
Round-Up Submissions
Brief company announcements of new or recently promoted personnel, free of charge, as space allows. Submit Info & Photo: AustinEditor@ConstructionNews.net (210) 308-5800
Talks, demo and tour
L-R: 1st Place Team winners Robert Shields, Brian Castano, Jarrett Dooley and Rick Segura
T
he Associated Builders & Contractors (ABC) Central Texas Chapter held it’s annual golf tournament May 16. Although it temperatures were in the upper ‘90s, the 144 golfers had a ball. The event was held at Lions Municipal Golf Course. –cmw
Winners: 1st Place: Harvey-Cleary Builders 2nd Place: Ryan Companies 3rd Place: Architectural Division 8 President Paul Brown with Bautex talks to general contractors, architects, city and school representatives at a demonstration and tour held at the Bautex plant in San Marcos, Jun. 13. -cmw
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Austin Construction News • JULY 2018
Austin Construction News • JULY 2018
Page 19
10 years ago Construction News ON LOCATION
Construction News ON LOCATION
Keep ‘em coming back!
More than drywall
L-R: Helping from behind the counter, Gordon Holt, Jeff Norton and James White, Dealers Electrical Supply, San Marcos, make sure that Butch Albertson and Roy Albertson, REA Electric, have their electrical supply order straight and on the books. -va
L-R: With a huge smoker sittin’ out front and an office decked out in hunterfriendly décor, it’s pretty obvious that Bobby Krieg, Frankie Brown and Russell Montgomery (not pictured), Unique Wallboard Inc., are more than just drywall contractors. The European Elk hanging behind Krieg wishes someone had told him that before he got taken home to be part of the décor! -va
Construction News ON LOCATION
Breaking through the concrete
Construction News ON LOCATION
If it “miters” to you
Since 1957, Penhall Company has been breaking through the toughest of concrete via sawing, drilling and breaking. L-R: Kevin Sheridan, division manager, and Dennis Allar, assistant manager, are proud to be part of it all and look forward to the next era of breaking through the concrete. -va
Ah, the miter saw…known for its quick, accurate crosscuts in a work piece. The team at Trim Tech is very familiar with the use of this saw and others, as they keep busy providing custom interior-trim service. So, if it “miters” to you, give the team a visit in Hutto! -va
Construction News ON LOCATION
Construction News ON LOCATION
Big time service, small town feel
Mechanical solutions
Despite the busy morning of constant phone calls and demanding tradesmen, Carol Rankin and Don Hofmann, Hofmann’s Supply, are still able to offer their customers the small-town service that has kept them in business for so long. -va
L-R: César Armendariz and Steven Mancias, Kyle Mechanical, can manage the intense heat and the brutal cold, but their goal is to make sure that no one else has to even think about those things. Prepared to answer the call for help, this duo has the industry’s heating and a/c solutions covered! -va
Construction News ON LOCATION
Construction News ON LOCATION
Busy, busy, busy
San Marcos’ newest ‘Good’ man
L-R: While Jason McGlothlin and Phil Gurrero, Baker Distributing, San Marcos, stay busy with ringing phones, HVAC supply shipments and hard-working contractor customers, they still manage to keep a smile on their faces and wish everyone a good day. -va
Pete Munoz Jr., branch manager, Goodman Manufacturing, says that though many people don’t know they are there, he and his San Marcos team are ready to help contractors with their heating and air conditioning supply needs. -va
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Austin Construction News • JULY 2018