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The Industry’s Newspaper www.constructionnews.net H (210) 308-5800 H Volume 21 H Number 9 H SEPTEMBER 2018
“Randy style”
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If it ain’t broke…
Big Red
nthony Heye, owner of Anthony’s Planet Pickup, and the late Randy Wyatt, Aggregate Haulers Inc. had been friends since high school, running together, street racing and doing all the things that teenage boys do. That friendship did not stop after graduation. It continued on through the years and was instrumental in getting Planet Pickup orbiting in San Antonio. “The roof of this building is like a bridge structure. It’s all reinforced concrete. When I moved in here, I told Wyatt that I was going to find an old truck, jack it up to the sky and put it on the roof. Randy never forgot that and a few years later, he called me up and told me to come get Big Red. You can have Big Red.” Big Red, as it is affectionately known,
is an F-250 that Wyatt had customized to the hilt. Back in the day, many of you may recall it was wrapped to look like the American Flag on wheels and was any good ol’ country boy’s dream. “When we were still on San Pedro Ave., Randy brought Big Red to me and said, ‘I want to make this the biggest, baddest truck you ever built. I want it to be sky high with the works! We worked for several months on Big Red because, at the time, there were no bolt-on lift kits for that design. We had to figure out all the springs and such.” Starting out with just a leveling kit and 35 in. tires, it wasn’t long before the “Randy-style” kicked in and was raised six inches with bigger tires, all performed by Planet Pickup. continued on Page 23
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L-R: Gary Cram and Mark Eichelbaum
ike many young people right out of college, students venture into careers that pave the way to their future. Gary Cram came to San Antonio to work for a roofing contractor after receiving his business degree. That relationship would not last for long. After a year and a half of employment, Cram left and set out on his own. With a seven-colored dump truck, one helper and his business degree, Cram Roofing was established on Nov. 15, 1986. “1986 was not a great time, but I did have a business degree. I had a background in marketing and right away I began doing a lot of marketing and it just kind of took off. “We made a lot of good friends and had a lot of help from a lot of good peo-
ple. Over time we grew from a medium to large contractor,” recalls Cram. “We have a lot of the same customers we had in the beginning. They’ve grown and we’ve grown with them. We do a lot of our work as a re-roofing prime contractor and we do repair work. Some of our work is service and, of course, we do new work. We’re very proud to work for the school district that we’re in, the Texas prison system, several different branches of the U.S. government, The Dept. of Defense – all that from one truck and one worker.” Now, after 32 years in business, Cram has handed over the reins. Effective Aug. 1, Mark Eichelbaum officially took the reins as president. continued on Page 23
Appearance can be deceiving
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ulcan Materials Company selected Forum Construction Company (FCC) as the contractor of choice for their new Medina quarry office and shop. Forum Construction Company was founded in 1986 by Ralph C. Bradford and was incorporated in 1993. In early 2008, Eric Stirm joined FCC working alongside Bradford, assisting in the dayto-day operation until July 2016 when Stirm purchased Forum Construction Company, becoming the sole owner and personally oversees all phases of operations and construction. Forum Construction Company has grown from a small concrete subcontracting firm to a fullyinsured, turn-key, design build general contractor with over 40 years of experience bringing quality craftsmanship to commercial construction. The Medina quarry office and shop project involved the new construction of
an approximate 4,060-sf wood framed office designed to look more like a farm house, with board and batten siding and metal roof, than a commercial office building. The main quarry office is comprised of wood framed, board and batted hardi board siding and cedar trim, limestone wainscot, rough-cut cedar exposed columns and beams with a standing seam roof. The interior of the office building is constructed of wood framing, insulation, drywall, wood cabinets, granite countertops and stained concrete flooring to give a cozy country feel. The quarry’s shop building is an approximate 8,350sf of pre-engineered Nucor metal building for working on their quarry equipment with an office area within the same building with R-panel siding and roof. The shop interior office is constructed of metal stud framing, dryMedina quarry office building
continued on Page 23
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San Antonio Construction News • SEPT 2018
Flooring family
Two become one
L-R: Grandson Baron Johnson joins grandfather Chris Johnson and father Brook Johnson as Johnson & Sons’ third generation.
Principals at Maestas & Associates, LLC gather after company merger to create the new brand identity. L-R: Andrea Narendorf; Dwayne Hamilton, PE, CFM; Jose Reyes, PE, CFM; and Ernest Maestas, PE.
hen Chris Johnson opened up a business account, the bank asked for his company’s name to put on the paperwork. Realizing he had not created one, Johnson found inspiration in his two sons, age 4 and 6, and christened the company Johnson & Sons on the spot. Chris’ prophecy came true. Both of his sons, Brook and Eric, did come to work for dear old dad (Chris cherishes his photo of their first day of work together). Brook eventually became partner and vice president, while Eric eventually left the commercial and industrial flooring company to pursue a voice-acting career (Eric is probably best known for his work as “Trunks” in the anime Dragon Ball Z). Chris’ sons aren’t the only ones involved in the family business; Chris’ wife Sandy Johnson was named as owner of Johnson & Sons four years ago, and serves as the company’s CEO. She has helped grow the business since the beginning, and was actually helping Chris when the flooring business was in a different industry altogether.
“Back in the late 80s, I was a lawn sprinkler contractor,” Chris explains. “A company needed a contractor to start installing new floors for them, and my brother happened to work for that company. I started on a very small scale installing floors for a company that sold epoxy paints. We started doing a few floors at a time on some very small jobs and we continued to do irrigation. The irrigation was good, but after about five years, the flooring business took over. We continued doing both until about 2000.” With 25 years of experience, and 50 employees in three locations in Plano, Houston and San Antonio, Johnson might someday have reason to change the company name in the future. “On our Facebook page, there is a picture of myself, my son Brook and my oldest grandson, Baron, who is 15, on his first day at work at Johnson & Sons Industrial Flooring,” Chris says. “I’d like this business to make it to the third generation. Subcontractor Johnson & Sons is in Plano, Houston and San Antonio. –mjm
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ince 1989, Maestas has been providing civil engineering design services to public and private clientele in San Antonio and the surrounding area. On May 1, Reyes & Hamilton Engineers, PLLC (R&H) joined the Maestas family. Jose Reyes, PE, CFM and Dwayne Hamilton, PE, CFM owned R&H and together they offered 37 years in planning, design, permitting and construction management of civil engineering projects. Through this merger, Maestas will be able to enhance a long-term growth for the firm and its employees. President Ernest Maestas, PE, summed it up like this, “The merger will allow us to offer enhanced collaboration and increased value in services to our clients. We are excited to have R&H’s exceptional engineering background and knowledge.” The merger will allow the firm to broaden its range of technical services in drainage and transportation, as both firms are fully experienced in drainage, water distribution and wastewater col-
lection design. In addition, both firms are experienced in utility coordination and transportation services. This enhances the firm’s initiative in two-dimensional hydraulic modeling and GIS design. “The joining of our two firms will provide our clients a more comprehensive suite of services with the quality that they have come to expect from Maestas,” adds Hamilton. Reyes and Hamilton join Maestas as principals of the company along side Andrea Narendorf, as Ernest Maestas will remain as president. The ESBE/SBE/MBE and HUB certified firm will continue to offer services in hydrologic studies, complex hydraulic modeling, FEMA floodplain mapping, storm water master planning, regulatory agency coordination, transportation, water distribution and wastewater collection. Maestas is a civil engineering designfirm in San Antonio, serving central and south Texas They are an ESBE/SBE/MBE and HUB certified –cmw
San Antonio Construction News • SEPT 2018
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Crushed stone on top
In memoriam
Balcones Quarry, New Braunfels, TX
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Rodney Lynn Fowler
odney Lynn Fowler was born on February 8, 1949 in Wichita Falls, Tx to his mother, Wilma Brown Fowler, and father Walter Theodore Fowler. Rod joined his Lord God Jesus Christ on August 1, 2018 in Boerne, Tx. Rod is survived by his high school sweetheart and loving wife of 47 years, Tana Perry Fowler, and their beloved children Perry Lynn Fowler and his wife Blair Westbrook Fowler, Walter Jennings Fowler and his wife Michele McCarthy Fowler, Ann Kameron Fowler and her fiancé Marshall Dean Terry. Rod was the proud grandfather of Annabelle Grace Fowler and Harley Michele Terry. Rod is survived by his brother Walter Guy Fowler, Pam Perry Craven, Richard Dean Perry, John Henry Perry, III and many nieces and nephews all whom he loved tremendously. He was preceded in death by his late sister Wilma Fowler Jackson and her beloved husband and dear friend Don “Coach” Jackson. Rod graduated from Wichita Falls High School in 1967 where his talents ranged from acting and boxing to playing for the Coyote Varsity football team. He attended Texas Christian University and was a member of the SAE Fraternity. Rod served as a sheriff’s deputy in Tarrant County prior to starting his 40-plus year career in the construction industry where he was highly regarded by his peers and clients. Rod was beloved to friends, family, and colleagues and was highly regarded for his humor, compassion and fierce loyalty. He was an active member of Currey Creek Baptist Church, and was also tireless advocate on issues impacting quality of life in the growing Boerne community where he resided for 22 years. Rod chaired committees on local transportation planning and was also active on local water issues and fighting for property rights. Rod was an ardent supporter of the law enforcement community and served as Director of the Kendall County Citizens Law Enforcement Academy Alumni Association. The consummate raconteur, Rod
never failed to make an impression or lend a hand. His love for others knew no bounds and he was loved by many. Services for Rodney were held on Monday August 6, 2018 at the Currey Creek Baptist Church in Boerne, Texas. From the publisher It was a great shock to receive that call from my wife, Reesa, that Tuesday morning. As I listened to her tell me Rod was gone, I don’t really think at that moment I comprehended what had just happened. I was just at his home the week before and as usual he was in the kitchen cooking and was full of BS. Everything was normal. His wife Tana was there and she asked me to help her get Rod to quit cussing so much. So I looked at Rod, we both laughed, each said a few choice cuss words, looked at Tana and laughed again. So that pretty much sums up my relationship with Rod for the last 30 years. Before we started the paper we had a drywall & demolition company and we worked a lot with Rod. I would sometimes get a call in the afternoon and it was Fowler telling me to man the job the next morning and by the way, I was already behind. I hadn’t seen the job, the plans or anything else but he would always say he bid it for me so I should be happy he was doing my work for me. Rod was unique in many ways and he also had a big heart. He helped Reesa collect tools, tv’s, x-boxs and other items to send to my stepson, Clay, and his troops in Afghanistan. They called it “Tools for Troops” and the boys so appreciated those items. So now, somewhere in heaven, Rod and Clay are probably shooting guns, raising hell and having a good time looking down on us with a smirk on both their faces. Buddy Doebbler Publisher
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lobal building materials company, CEMEX, has much to be excited about. CEMEX’s Balcones Quarry located in New Braunfels is the top crushed stone production operation in the United States. The United States Geological Survey (USGS) ranks the Balcones Quarry, centered on gathered statistics, first in the nation in terms of crushed stone production based on the latest volume figures from 2016. This is not Balcones Quarry’s first top spot ranking. It previously captured the top spot in 2015 and has acquired various other awards for their environmental efforts. Celebrating their 50th anniversary, the Balcones Quarry opened in 1968. It is one of the largest quarries in the United States. There are multiple geologic formations within the Balcones These include high purity limestone, shaly limestone (Marl), and clay and chert seams. Aggregates are shipped via truck and rail. The Balcones plant was acquired by
CEMEX in 1994 and has been going strong ever since. Annually, it processes more than 10 million tons of limestone for construction projects across Texas. In addition to the quarry’s success, CEMEX recently completed a Wildlife Habitat and Education Center on the grounds of the quarry’s operation in July. It includes 17 acres of restored prairie, pollinator gardens and meadows with native plants to promote conservation and sustainability. Development of the wildlife habitat started in May 2013. The pollinator garden was completed in the spring of 2017. The native prairie restoration and upkeep of the gardens is an ongoing effort. Also, recently commissioned at the quarry is a water recycling facility that can reduce annual water consumption by nearly 90 percent. CEMEX Balcones Quarry is an aggregate production quarry located in New Braunfels, TX. –cmw
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San Antonio Construction News • SEPT 2018
Bringing skeets with eats
A tale of two cities
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Jim Parker, owner and president of Parker & Sons Plumbing.
im Parker, owner of Parker & Sons Plumbing,LLC originally hailed from the Dallas Metroplex area. He went to college in Irving. He even rooted for the Mavericks at one time. But now, it’s, “Go, Spurs, go!” all the way. “I love the people here,” he said. Parker worked for AAA Auger Plumbing Services in Dallas, beginning his career in the plumbing trade. He was the go-to guy in the office to whom people came when they needed something or something done. AAA moved Parker and his family to San Antonio to help run their shop down here. Parker always knew he wanted to run his own business someday, and he enjoyed his time with AAA. But after 10 years with them, he branched out on his own and formed his own plumbing company in 2011. The “Sons” part of the company’s name is for Parker’s two boys, now 10 and 14. Parker & Sons has 10 employees, and is looking to grow, but at a reasonable rate. Parker said he “definitely wants to grow, but we want to grow smarter.”
A big difference between Dallas and San Antonio is Dallas’ water is much softer, while San Antonio’s is hard, meaning water softeners are a must down here. San Antonio also has much higher water pressure; it’s not uncommon to be at a full 100 percent PSI here. Parker & Sons’ office is located near the Dominion, where a lot of Spurs players live. One day Parker’s crew was getting gas and so was Manu Ginobili, who took time to pose for pictures with the guys. “He’s so nice,” said Parker. That left a lasting impression on Parker (Jim of the plumbing company, not Tony of the Spurs, just to be clear), further solidifying that San Antonio is now home for the Dallas transplant. With the Alamo City growing as it is, there will never be a shortage of homes and businesses for Parker & Sons to install water softeners at. During the basketball season, when the Mavericks come down here to play, there aren’t any conflicting emotions at all. Mark Cuban who? Subcontractor Parker & Sons Plumbing is locatedin the San Antonio area. -dsz
L-R: Bryan Anderson, Gallager Benefit Services; Gregg Lyssy, Mission Title; Elizabeth Lyssy, RSM and Todd Martin, Texas Capital Bank
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SM US LLP held its annual ‘Skeets & Eats’ event on Aug. 15 at the National Shooting Complex. The event is the firm’s way of showing their appreciation to their many clients and friends they have acquired through the years. “We’ve been doing this event for over 25 years. It’s an event we all look forward to with our clients and other friends that we have in the community,” says partner Denise Bendele. “We will probably continue hosting this event in this ‘hot’ weather every year; it is something
we all look forward to.” Aug. 16 is the second year anniversary for the former Padgett, Stratemann & Co. group as RSM and their third skeet shoot under RSM. “Generally, when all the tallying is done, we will probably have 500 people that have come and gone. Some people come early to shoot and beat the traffic home. Some come a little bit later for the dinner and the mingling.” -cmw RSM US LLP is a full-service accounting and consulting firm. -cmw
3 Jose Villarreal and Hugo Gutierrez, III with Falcon International Bank
San Antonio Construction News • SEPT 2018
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Construction News ON LOCATION
Welding the family way
A welded welcoming
Terry Lehmann and Chris Koehler visit with Construction News at Koehler Welding Inc. in New Braunfels, TX. -cmw
Construction News ON LOCATION
Tile-a-clay
Egmont Barron and Ricardo Ramos with Claymex Brick & Roof Tile pose for a photo when Construction News pays a visit. -cmw
Daniel Macias (left) with supervisor Dennis Guerra (right) in front of their new fence.
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aniel Macias, owner of Macias Welding, took three approaches to learning the welding trade. “I learned it through my dad’s family business when I was young. I began learning the hard way, of course!” Macias says. “I also went to school, I worked for several big companies to get more experience and then I went out on my own. When my father, Danny, retired, I put the company into my name in 2015. I took it over and expanded it from there.” Even though Macias had observed how his dad ran the business, he found there was still much to learn about being a boss. “It took a lot of dedication,” he says. “A lot of headaches came with it. All I do is work and at the end of the day, I still have all the paperwork to do,” he says. “Still, I learned as I went and learned from mistakes; what not to do.” Three years later, he used his skill, experience and four-man crew to land notable projects, including a fence for Alamo Truck Gear. He’s also looking
ahead at the direction he wants to take the company. “I want to expand it,” he says. “It keeps on growing but I limit myself. I don’t want to be in over my head. I don’t want to push myself too far or I’ll put myself in a bind. I only have so much crew and some jobs have gotten a lot bigger and I can’t always be everywhere at once. Plus, sometimes I’m a little picky; I want it perfect the first time.” One member of his crew in particular just might be able to help Dad achieve the growth he wants while keeping the business in the family. Like Macias, this next generation might be learning the welding trade the “hard way” too. “One of my sons, Anthony, works for me, but I don’t know if he likes working for his dad!” Macias says. “He might think I pick on him, but I’m not. I’m just trying to show him the right way to do things. We learn from mistakes. I keep telling him to get out in the field and get dirty.” Welding subcontractor Macias Welding is located in San Antonio. –mjm
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San Antonio Construction News • SEPT 2018
Keep your eye on Metro!
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Forced opportunity success
L-R: John Franklin, Chris Carruth, Jane Feigenbaum, Steve Schuetze, Tim Swan, Taylor Jordan and Fernando Diego.
s San Antonio continues to grow, so does Metropolitan. Metropolitan Contracting is a well-established, San Antonio based company that was founded in 1986 by Tim Swan and Steve Schuetze. Rising out of the challenges of the 1986 recession, Metropolitan has thrived by specializing in privatesector commercial work, including tenant improvements and new construction, and has completed more than 4,000 projects. Metropolitan recently rebranded as Metro and introduced a new logo and a modernized website. To ensure that the company continues to provide the level of excellence that it is known for, the leadership team has been expanded and several employees have been promoted. Tim Swan will now serve as Chairman and Jane Feigenbaum moves into the CEO role. Jane has been with the company for over 23 years and has served most recently as the as the COO. Jane will continue to guide the company and be intricately involved daily in the management of the business. Chris Carruth has joined the firm and heads up strategic planning and development and will utilize his 35 years of experience in the industry to maintain ex-
isting relationships, develop new client relationships and lead the firm into new vertical market opportunities. To provide more management at the upper levels of the company, Fernando Diego, Taylor Jordan and John Franklin have been promoted to Project Executive. They will use their years of experience to provide leadership to the project management staff and guidance to the expansive customer base. Between the three of them, they possess an average of more than 20 years in the industry and more than seven years with Metro. The promotion of these leaders will allow Metro to continue to grow the firm. The future is bright at Metro. The company continues to serve its primary markets; retail, office buildings, industrial and historic renovations. Moreover, the company is intensifying its focus on healthcare construction inclusive of medical office building, surgery centers, ambulatory care. This market continues to evolve and Metro has plans to utilize its depth of experience to meet the future demands of this market. Metropolitan Contracting is a privatessector construction firm in San Antonio. -bd
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Terry Bessire, Mark Jones and Bill Imhoff
he market depression of the ‘80s turned out to be a blessing for Intertech Commercial Flooring. At the time, owner Bill Imhoff, Vice Presidents Mark Jones, Terry Bessire and Dixon Matlock were working for another flooring company that closed its door while working on a good-sized project in Austin. That’s when they knew they wanted to start their own company. As fate would have it, the four worked together, along with 11 other employees from their previous employment and set out to continue what they had started, and the rest is history. “We were installing 1,200 yards of carpet a day when the company we were working for closed its doors. During that time, nobody would lend any money. We did everything we could to get the money to start Intertech. I called the head of facilities for the job we were on and told them that we had started our own company and asked him to let us finish the job. Things just fell into place. They really helped us get started,” recalls Imhoff.
The big “60”
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or six decades, women in construction have been making a presence. Celebrating their 60th anniversary, the National Association of Women (NAWIC) in Construction had a party hosted by the chapter’s past presidents. On Aug. 1, NAWIC members gathered at the Petroleum Club to celebrate and commemorate their success in the industry. –cmw
L-R: Celeste Estep and Judy DeWeese
L-R: Silent Auction contest winners Kathy Bower, Eloina Benavides and Martha Simpson
Dana Calonge, Patty Wylie, Jennifer Swinney, Michelle Urbanczyk, Celeste Estep, Martha Simpson, Judy DeWeese and Becky Wynne
It’s been 30 years since that faithful project, and Intertech is going strong with several locations in Austin, San Antonio, Dallas and Mission, TX. They have grown from 15 employees to well over 150 employees. Seven of the original 15 employees are still with Intertech. Jones eventually moved to head-up the San Antonio office. “It’s been a long road, but then again it seems like yesterday when we started. I’m here in San Antonio and it’s one of the best moves I ever made,” says Jones. To ensure the quality of Intertech stays intact, Intertech has it’s own inhouse apprenticeship program training skilled installers through a Dept. of Labor approved program. To celebrate the company’s 30th anniversary, Intertech hosted an anniversary party at the Alamo Beer Company. The event was held on Aug. 9 with over 200 clients, friends, employees and family in attendance. Intertech Commercial Flooring is a fullservice commercial flooring contractor. -cmw
San Antonio Construction News • SEPT 2018
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Bring on the clays
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hat a scorcher! But that didn’t stop 200 plus members, friends and guests from showing up at the American Subcontractors Association’s (ASA) annual clay shoot at the National Shooting Complex. The event was held on Aug. 23, just in time to get some shooting practice in before the opening of dove season, which opens Sept. 1 for north and central zones; Sept. 14 for the south zone. –cmw. 1st Place Class B Yellow Course-Jody Darnell, Trimble-Batjer Insurance Agency, score 75
Top Team Yellow Course – RC Page,score 363
1st Place Class A Yellow Course – Danny Webb, Ridout Barrett, score 97
2nd Place Class B Yellow Course – Joel Cavazos, Texas First Rentals, score 74
2nd Place Class A Red Course – Charles Pool, Broadway Bank, score 94
2nd Place Class B Red Course – Jimmy LaGrange, Alamo Crane Service, score 72
2nd Place Class A Yellow Course – Brooks Holzhausen, RC Page, score 95
1st Place Class A Red Course – Austin Luchak, F.A. Nunnelly, score 95
1st Place Class B Red Course – Jonathan Barger, Big State Electric, score 72
Top Team Red Course Broadway Bank, score 353
San Antonio
CONSTRUCTION NEWS If you are a construction-related company in the San Antonio area and would like an article about your company, your personnel or your event, call us for an interview. There is absolutely no charge.
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San Antonio Area Counties Atascosa, Bexar, Bandera, Comal, Guadalupe, Kendall, Medina and Wilson counties Construction News Ltd. Home Office P.O. Box 791290 • San Antonio, Tx 78279 210-308-5800 Fax 210-308-5960 www.ConstructionNews.net
Visit our Website to sign up for a free monthly Digital Subscription www.ConstructionNews.net The San Antonio Construction News (ISSN 1547-7630) is published monthly by Construction News LTD., dba San Antonio Construction News, and distributed by mail to construction-related companies of record in Bexar and 7 surrounding counties. All submissions should be mailed to our editorial offices. We reserve the right to edit any materials submitted. No fees for materials, copy or photographs submitted will be due unless agreed upon in advance in writing. Submissions will be published at our discretion on a space available basis. Construction News, Ltd. , dba San Antonio Construction News, will not be liable for errors in copy or in advertisements beyond the actual cost of space occupied by the error. Publisher reserves the right to reject any advertisement at any time. ©2018 Construction News, Ltd.
Leading Lady – Tess Shelton, Intertech Commercial Flooring, score 69
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San Antonio Construction News • SEPT 2018
Sooner than later: Changes in lease accounting Doug Swofford, CPA, Accounting & Consulting Services Supervising Senior Lane Gorman Trubitt, LLC Dallas, TX
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eady or not, here it comes. Starting in 2019 for public companies (2020 for private companies), the way leases are accounted for and reported will change. These changes can impact the financial statements of lessees. While the implementation date might seem far away in the future, companies should start preparing for the changes in order to achieve a smooth transition. Historically, there have been two rules. Even though the operating lease kinds of leases for lessees, operating leas- still exists, it will look very different from es and capital leases. The difference be- the historic presentation of operating tween these two types of leases is deter- leases. Under the new rules, both financmined by a set of rules. The life of the ing and operating leases will require a asset, the length of the lease term, “right of use asset” and lease liability to whether there was a bargain purchase be recorded. This change will eliminate option, and other criteria. An operating the ability of companies to structure leaslease is reported by recording rent ex- es for off balance sheet financing. pense over the term of the lease. A capi- The overall changes to leases are tal lease is required to be recorded on the more complex than simply moving them balance sheet. A capital lease asset and a all to the balance sheet, but that is becapital lease liability are recorded. De- yond the scope of a single article. Inpreciation expense is recorded over the stead, here are some best practices to folterm of the lease which lowers the value low. Business owners and managers of the asset. The liability is decreased as should look to analyze the impact of the changes on their financial statements. If payments are made. The difference between operating your company has significant leases, the and capital leases allowed companies addition of the related liabilities in the some flexibility in controlling their bal- year of implementation could impact the ance sheet. The SEC first identified leases operation of your business. Bonding as a topic for change in 2005 due to in- agents, bankers, and even potential cuscreased “off balance sheet financing.” tomers who use your financial stateSome companies worked to structure ments will notice a large jump in liabilileases as operating leases instead of capi- ties. This could affect your ability to get tal leases. Both leases result in the same credit or secure a bond. Proactively deexpense over the life of the lease, but termining the impact will allow you to capital leases require recording an asset start talking with your creditors now to and the accompanying liability. By focus- make sure the change will not negatively ing on operating leases, a company could impact your business. Whether you like it avoid recording the liabilities associated or not, change is coming. Are you ready for it? with a capital lease. The new accounting method chang- Doug Swofford joined LGT in 2016 and has exes the two types of leases to operating tensive tax experience in S corporations, partleases and financing leases. In addition nerships, and individuals, as well as financial reporting: compilations and reviews, business to changing the names of the lease types, personal property: compliance and protests, the reporting of leases in financial state- and payroll taxes: audits and compliance issues ments will be different under the new within the construction industry.
A basic explanation of Experience Rating & its benefits to the employer Austin Goolsby, Vice President TexCap Insurance Dallas, TX
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t’s six to one and half a dozen to another whether you refer to a company’s NCCI experience rating as an EMR or EMOD. At the end of the day they are the same in relative terms but how they are computed on behalf of a business is as unique as the company itself. Let’s start by what the National Except for a couple of industries in Council on Compensation Insurance select states, Texas is one of only two (NCCI) does and why they’re “Experience states where workers comp is elective. Rating Plan” is a benefit to employers. Texas also has a state accident limitation, The NCCI is an insurance rating and data which helps minimize the impact of a secollection agency that is only concerned vere loss on a company’s rating. Effective with workers compensation and employ- 7/8/2018 a $251,000 cap is put on cataer’s liability. They are a non-profit organi- strophic losses. Meaning if a loss is zation analyzing industry trends within $500,000 only $251,000 can be considevery industry classification. Their exami- ered in the rating factor. Due to large nation of costs, rates and legislation are losses being so infrequent this limitation currently instituted in thirty-six states by helps alleviate the impact on ratings. The way of state insurance departments, like limitation does vary by state and in Texas the Texas Department of Insurance (TDI). its reviewed annually by TDI and adjustThey use untold amounts of data report- ed to account for inflation, among other ed by the insurance companies appoint- things. ed in each state to configure work comp Now back to the real-world applicarates. The Experience Rating Plan is a vital tion and how this effects day to day oppiece in an employer’s final cost of insur- erations. The vetting of a company’s exance as it relates to workers comp and is perience, reputation and capacity, along applied in two ways. It alters the final net with verifying insurance, are all common premium paid by using a business’s practice during the pre-qualification prounique loss information and it incentiviz- cess, but more and more an employer’s es an employer to develop and imple- rating is becoming a significant factor ment loss prevention that encourage re- when receiving an invitation to bid. The turn-to-work programs. If there wasn’t an folks awarding projects are peering into Experience Rating Plan an individual an employer’s safety measures and using company’s loss prevention practices their rating as a gauge. Most of those enwouldn’t be considered and everyone forcing this measurement are requiring would be subject to manual rating, which companies to have a rating of less than is essentially an average of estimated 1.00, and some higher profile projects relosses per industry and each company quire a rating of less than 0.85. Every under the same classification would pay company should strive to have a safe their premium based on individual pay- working environment for their employroll as it relates to that specific class as a ees, both in the office and on site, and whole. that’s the whole idea behind the Experi So what information is considered? ence Rating Plan, but completion dates The primary loss information used to fig- are moved up, change orders happen ure the rating are the three years prior to and mother nature usually impacts a the expiring term. Moreover, when your project along the way. At the end of the workers comp expires this year the NCCI day, a company’s strategy and approach will use the years 2014-2015, 2015-2016 to the health and safety of its employees and 2016-2017 loss information in their will reflect in their individual rating and rating. This allows the insurance compa- their insurance will shield against the unny time to report the information to NCCI expected. and it consequently allows an employer Austin Goolsby is a Vice President of time to implement safety measures to TexCap Insurance, an independent insurprevent past losses from reoccurring. If ance agency headquartered in Dallas, Texthere isn’t prior coverage, an insurance as. He is one of the leading members of the company can use manual rating in con- construction division at TexCap Insurance junction with a scheduled credit. In order and has over 8 years of total experience in to qualify for the Experience Rating Plan the field, on the building material supply a business must have a minimum premi- side and insurance aspects of the industry. um of $10,000 or have payrolls that would For more information please visit www.Texgenerate and average of at least $5,000 CapINS.com or you can contact Austin diof premium during the previous two rectly at 972-720-5384 or agoolsby@Texyears. CapINS.com.
San Antonio Construction News • SEPT 2018
Three steps employers can take to protect Latino and immigrant workers from discrimination Mauro Ramirez Fisher Phillips Houston, TX
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he Bureau of Labor Statistics estimates that Latinos make up 29 percent of construction workers in the United States. This percentage varies from state to state, with Latinos likely comprising more than 50 percent of construction workers in Texas. (The Center for Construction Research and Training estimates 55 percent). Other studies estimate that immigrants comprise about 25 percent of construction workers nationwide and 41 percent in Texas, with most having emigrated from Mexico. These figures – in combination with guage barrier. Are policies and acknowlgeneral shortages in skilled construction edgement forms translated into Spanish workers – underscore the importance of (either in writing or verbally)? construction companies’ efforts to re- Training. A well-drafted, thoroughly cruit and retain Latino workers. disseminated policy is not worth the pa The National Discussion on per it is printed on if managers do not Immigration know how to enforce its terms effectively Immigration from Latin-American coun- and consistently. Training is essential to tries became a key talking point during the educating managers and workers alike on 2016 election and in this year’s mid-term recognizing prohibited conduct, as well political campaigns, and employers report as responding appropriately when they an increase in enforcement efforts this witness or are a victim of such conduct. year. This national discussion highlights Again, consider providing training in the need for employers to continue non- Spanish to assure workers and managers discrimination efforts in the workplace. understand your commitment to provid In 2017, survey results indicated that ing a discrimination-free environment. about a third of Latinos reported experi- Investigation. Employers who reencing discrimination in workplace situa- ceive a report of harassment must take it tions (applications, equal pay and pro- seriously and promptly start an investigamotions). This sentiment has steadily in- tion. There is no one-size-fits-all apcreased since the early 2000s (in 2002, proach, but the following components Rutgers University found that 22 percent are essential: of Latino workers reported experiencing Objectively interview the complainrace-based unfair treatment). ing party, the alleged harasser and any Some suggest the trends are related third-party witness, documenting the innot only to national discussions on immi- formation provided and obtaining writgration, but also to an incorrect assump- ten statements. Use a translator if necestion that discrimination is permitted sary. against certain groups. To the contrary, Preserve and review relevant eviTitle VII of the Civil Rights Act of 1964 pro- dence, including text messages, e-mails, hibits discrimination based on both race documents and photos. and national origin (including a person’s Analyze the facts, weigh the evidence or ancestor’s place of birth), and the Im- and assess witnesses’ credibility to determigration and Nationality Act prohibits mine the truth. discrimination against non-citizens au- Arrive at a conclusion and make recthorized to work in the United States. ommendations to resolve the complaint, Steps for Creating an Inclusive including potential disciplinary action for Workplace the accused harasser. Employers can take three simple Communicate the outcome of the insteps to implement these laws and create vestigation to the parties involved. an inclusive workplace: create and en- If the investigation reveals that the force anti-discrimination policies; pro- allegations against the accused are subvide effective training; and promptly in- stantiated, take action commensurate vestigate reports. with the gravity of the offense. Conduct Policies. Strong, clear policies set ing a good investigation will improve out expectations for workplace behavior morale, minimize legal liability and demand communicate how seriously you onstrate a commitment to enforcing politreat this subject. Policies should define cies and promoting an inclusive and rediscrimination and harassment (provid- spectful workforce. ing clear examples) and state conse- An inclusive work environment helps quences for violations. Policies should employers thrive in an increasingly direflect the modern workplace and ad- verse world. By adhering to the tenets of dress harassment in a thoughtful man- Title VII and implementing the steps ner. For instance, does your policy ad- above, construction companies will build dress conduct that may occur via text employee loyalty and a team perspective message or online forums? that helps them retain critical Latino Give similar thoughtful consider- workers. ation to distributing the policies. A policy Mauro Ramirez is Of Counsel in the is ineffective if workers and managers do Houston office of labor and employment not know or understand its terms. With law firm Fisher Phillips. Mauro can be respect to Latino workers, in particular, reached at 713.292.0150 or mramirez@fishemployers should account for the lan- erphillips.com.
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Backover Incidents Joann Natarajan Compliance Assistance Specialist OSHA Austin, TX
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backover incident occurs when a backing vehicle strikes a worker who is standing, walking, or kneeling behind the vehicle.
How do backover incidents occur? Backover accidents can happen for a variety of reasons. Drivers may not be able to see a worker in their blind spot. Workers may not hear backup alarms because of other worksite noises or because the alarms are not functioning. A spotter assisting one truck may not see another truck behind him. Workers riding on vehicles may fall off and get backed over. Drivers may assume that the area is clear and not look in the direction of travel. Sometimes, it is unclear why a worker was in the path of a backing vehicle. A combination of factors can also lead to backover incidents. What can be done to prevent backover incidents? Many solutions exist to prevent backover incidents. Drivers can use a spotter to help them back up their vehicles. Video cameras with in-vehicle display monitors can give drivers a view of what is behind them. Proximity detection devices, such as radar and sonar, can alert drivers to objects that are behind them. Tag-based systems can inform drivers when other employees are behind the vehicle and can alert employees when they walk near a vehicle equipped to communicate with the tag worn by the employee. On some work sites, employers can create internal traffic control
plans, which tell the drivers where to drive and can reduce the need to back up. In some cases, internal traffic control plans can be used to separate employees on foot from operating equipment. Training is another tool to prevent backover incidents. Blind spots behind and around vehicles are not immediately obvious to employees on foot. By training employees on where those blind spots are and how to avoid being in them, employers can prevent some backover incidents. One component of this training can include putting employees who will be working around vehicles in the driver’s seat to get a feel for where the blind spots are and what, exactly, the drivers can see. The National Institute for Occupational Safety and Health (NIOSH) has several blind spot diagrams that can help explain what drivers of various large trucks can see. These diagrams can be located here: https://www.cdc.gov/niosh/topics/highwayworkzones/BAD/imagelookup.html OSHA also has several free videos on preventing stuck by accidents that are free to view or download: https://www.osha.gov/dts/vtools/construction/struck_by_backover_fnl_eng_ web.html natarajan.joann@dol.gov 512-374-0271 x232
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San Antonio Construction News • SEPT 2018
Jaime A. Flores
President Cal-Tex Interiors Inc.
Yolanda Flores Vice President San Antonio, Texas
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fter 20 years, Jaime and Yolanda Flores of Cal-Tex Interiors Inc. still love working together. Their respect for each other both in business and in marriage radiates outward to include their customers, employees and work. How did you start in construction and establish your company? Jaime: My father, Hignio Flores, was a carpenter by trade and a subcontractor. During my summers and off times growing up, I would go to work with him and learn the trade from him. I worked with him through high school and continued to work as a drywall carpenter for other companies. Work was scarce in San Antonio for a period of time and I chose to leave for California. I worked for the carpenters’ local 1506 union and spent 10 years there, gaining more experience and knowledge of the trade. Early on in the trade when I was working with my dad, I saw a lot of struggles that he went through being a subcontractor. I knew early on that I always wanted to own my own business. When I was in L.A., I came back to Texas one year to visit, and I noticed there was a lot of opportunity in San Antonio in the construction industry. My wife Yolanda and I decided that it would be a good opportunity to come back home and start a business. I wanted to start the business the way my dad had always envisioned it – with the proper insurance, with the legal name – but unfortunately at the time he had to raise a family and never had the opportunity to do it in the proper way. I told my dad I was coming back home,
that I wanted to open up this business and asked him if he wanted to be my partner. He said absolutely. We went back, dropped Yolanda off, came back to San Antonio, opened up my DBA and opened up the business in 1998. Our first project two weeks within opening up the business was at Alamo Bank Center in downtown San Antonio which was around $859 dollars. From there on, we just continued with the business. Yolanda: My background was as a workman’s comp administrator and a real estate mortgage lender. When Jaime decided to open up his own business, I thought he could do the technical side of it and work out in the field. I started taking classes and started learning about construction accounting, and that’s how I started contributing to the business, all of the financial and operations side of it. The first years were hard because we knew it was going to be a matter of getting to know people and working at the business. I worked at USAA and would help with his office needs at night. It wasn’t until the business was established for about five years that I quit working outside of Cal-Tex and came to work here full-time. What is the reward of this industry? Yolanda: For the first 10 years of our business, we focused a lot on the private industry. I think the biggest reward is just driving through the city; it’s great to see how it has grown and know that we had a hand in a lot of businesses and restaurants that are still standing. We’ve worked so much on this city’s growth the past 20 years. Jaime: I enjoy, like Yolanda mentioned, being able to see some of the structures that are still standing, and being part of the growth of San Antonio. We have been very blessed to be part of it and being part of a team of businesses that are well-known in building these structures and facilities. What qualities does your spouse bring to the business? Jaime: Yolanda brings a lot of great assets to the business. She’s very well rounded; she knows so much of every aspect of the business that needs to be known, from human resources to financial to the technical portion of it. Yolanda: Jaime brings a lot to the business. Jamie runs his business the way he runs his life – with a lot of integrity, with a lot of pride in his work. That’s throughout the company; his guys know what is expected. He’s driven by excellence, doing a good job and by keeping his customers satisfied. Most of our work is from repeat customers. We work with just a handful of people, and I think building those strong business rela-
Yolanda and Jaime Flores. tionships also falls on him since he’s out in the field having the day-to-daycontact. I think more than anything, he brings that. He brings 30-plus years of knowledge about building things and being able to work with everybody involved who has a hand in it; he’s able to work very well with people. What lessons have you learned? Jaime: The greatest lesson I’ve learned is that communication is key. It’s very important to have open communication with your client and the contractors that you’re working with. Yolanda: What I have learned the most in this business is that there are a wealth of resources out there to help you. You don’t have to excel at everything; you just have to know the right resources to go to. San Antonio has great resources. You can attend training and stay up-todate by tapping into those resources and learning about every aspect of the business. The biggest thing I have learned is how hard it is to run a business. You have to know about so much, everything from insurance to workers comp to some legal aspects of it. You have to be well rounded and you have to keep an open mind. It’s a must that you will always be learning because there is always something to learn. How do you bond with your employees? Jaime: We have about 30 employees, and we enjoy doing different activities with them. We like to barbecue and have lunches. We go on fishing trips and we also go on family outings where some of our guys are able to take their spouses and go on a weekend getaway and things of that nature.
What is it like working together? Yolanda: We love working together, and I think the way we have been successful after 20 years of working together is that we respect each others’ opinion and we value what we each bring to the table. Jaime is very much set on what he needs to work on. I feel like when it comes to the office, I have a say so, but we keep that open and we know that we respect each other’s opinions and we value each other’s decisions. Share a little about your family and how you enjoy your free time. Yolanda: We have 9-year old twins – a boy and a girl – that keep us very, very busy. We are blessed; we’ve been married 24 years next month. We feel that we stay grounded with a strong faith and a strong involvement in our church and our community. We do feel that we do have God’s favor and blessings, not only in our personal life but also in this business. We know what the driving force behind this is. Jaime: I just love spending time with my family; family is very important to me in my life, as well as travel. We travel as a family and we do life as a family. Yolanda: The kids spend a lot of hours here after school if we’re trying to finish a project up; they know that owning a business is not just going to work for eight hours; it is basically our life. They know that this is a big part of our life and they’ve embraced that. Have your children expressed an interest in helping with the business? Yolanda: Both have expressed an interest in the business. Our son is blessed with great hands and loves to work with them. He also is very imaginative and sees himself as an engineer later. We’re not sure what route he’ll take this business but he has shown interest in taking over Cal-Tex. What are your plans for the company? Yolanda: I think we’ll retire doing this. I think we’ve always played with the idea of maybe retiring or venturing off into something new, even as we’ve had tough years. But the truth of the matter is, Cal-Tex is our bread and butter. We also have a very good team of employees that depend on our work. We just want to make sure that they are okay and that they gain benefits from working for this company as we have. We also see ourselves diversifying. We have played with the idea of growing the company, but we also know that with growth comes a lot of different growing pains. At this time, we’re very comfortable where we’re at, with the employees that we have; it takes a lot to get a good group of employees working with us. Right now, we’re a strong team and the key is maintaining this work we have diversified already. Because those partnerships with the people that we have partnered with have been good, I think that we will continue to build those partnerships. General contractor Cal-Tex Interiors is located in San Antonio. –mjm
San Antonio Construction News • SEPT 2018
Industry FOLKS
Brittany Holmes Administrative Assistant
Big City Access San Antonio, TX
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orn and raised on the east side, about a good stone’s throw from the Wheatley Courts, Brittany is an incredible woman. As she puts it, growing up there was not a walk in the park. “It was challenging. I could easily be living an entirely different life. My old neighborhoods weren’t the best and the temptation to do all the things you shouldn’t be doing was there daily. I was blessed that my family kept me on track. My mom worked hard to provide for my sisters and I. Did we have the best of everything? No, but it was never because she didn’t try. I have a family and a strong network of friends that just wanted better for me. I wanted better for me. So even though I lived in those environments, I never became a product of its negatively.” As time went on, she spent a lot of her time on the northeast side and graduated from Roosevelt High School in 2008. She is currently attending college and is working very hard to complete her bachelors degree in architecture. A newly wed of two months, Holmes met her husband, Dirrick, a few times before they really got to know each other talking online. “He challenged me to a game of pool, I took him up on it…he lost very badly our first date! Shooting pool together is our thing. We play once or twice a week. We have been through a lot together. Every time he has stepped up and showed me how amazing he is. I love my husband! In February 2017, Holmes and her then boyfriend, Dirrick, were shocked to discover she was pregnant. Neither thought they could have kids. And as life so often does, it threw her yet another surprise. They found out she was carrying twins. Unfortunately, God decided he needed their angels more. “I lost my children in my first trimester. We named them Skylar and Zion. It was hard and still is. They mattered to me. So I always talk about them.” Holmes got into construction by luck she says. Her branch manager actually trained her in martial art. Prior to working for Big City Access, she was a banker. And after a spectacular blaze of glory, she left the banking world in sheer frustration. A once top representative for a banking company, found herself at square one, after years of financial stability. Bills still needed to be paid. She struggled, working at a grocery store when her branch manager’s wife told her Big City Access needed a receptionist. “I dove on that application faster than a burning man racing to water. I went through the hiring process the same as anyone. I was selected and I have worked hard to make sure Ben Cantu, my branch manager, doesn’t regret it. He took a chance on me, so I work hard to make sure the branch runs as efficiently as possible. I love these guys. They look tough, but are giant softies.” Holmes works out a lot, training in Mixed Martial Arts (MMA) with aspirations of fighting one day. -cmw
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San Antonio Construction News • SEPT 2018
Not your typical CPA
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Steven Bankler and team.
rowing up, Steven Bankler’s family owned a few local retail stores in San Antonio that his grandfather started. He always assumed he would be a part of the family business. But, when Bankler was ready to start working, his family was not ready to hire him. With the market crash in the early ‘70s, Bankler changed his planned career course to merge two passions, entrepreneurship and taxes. Encouraged by his father, he went back to school to complete his accounting credits. And at the advice of several attorneys and professionals, he started his own practice. In 1977, he established Steven Bankler CPA. Since he didn’t enter the profession through an internship with a “Big Four” accounting firm like other CPAs often do, he had to learn the ins and outs on his own. “It turned out to be a blessing. I did learn, and found I don’t fit the mold of a “typical” accountant. My accounting and management skills are self-taught and less constrained to textbook thinking. It’s allowed me to reverseengineer tax returns to truly solve prob-
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lems for my clients and uncover savings to put money back in their pocket.” Having grown up in a family business, we worked with outside accountants. I came to realize, they are a necessary evil and I’ve tried to figure out a way to make us (accountants) necessary, but not necessarily evil,” says Bankler. About 20 percent of Bankler’s clients are in the construction industry and he predicts this will continue to grow. “Accounting for construction is a little more complicated than other businesses because they have projects that can last for a year or longer, so we can utilize different methods of accounting that other businesses can’t.“ Steven Bankler CPA Ltd. is unique in that only seasoned, knowledgeable, experienced CPAs manage your business, not bookkeepers, CPAs-in-training or studious interns. His team is able to provide timely, relevant business consulting in a variety of areas ranging from asset protection to exit strategies. Steven Bankler CPA Ltd. Is a niche accounting firm. -cmw
Hot dog!
ot dogs, Armour hot dogs…Since Jul. 23 was National Hot Dog Day, Terracon Consultants Inc. decided to have a little fun. “It made Monday fun, we cooked our doggies and buns. Everyone brought a dish and we let the fun begin,” says Melynne Wulff. –cmw
San Antonio Construction News • SEPT 2018
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End to a great beginning 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, AFW and AFTCO Clothing
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y the time this paper hits the newsstands, summer break will have ended and kids will be back in schools continuing their education. This is also a time that our bay system will see a much needed break from the daily pressures that it’s received since early May. Every year I notice more and more boats on the water. With this comes added pressure in congested areas that are popular and hold lots of fish. It doesn’t take long for fish to move on and seek less pressured areas. Changing your normal fishing strategies will keep you on the bite during these difficult times. With fall weather patterns approaching, it’s time to start paying attention to little indicators that will help you catch fish. During summer months, weather stays fairly stable unless there is a rare rain shower in the area. Typically, from mid-May until the middle of September we are going to have pretty stable weather patterns. On the other hand, fall is a transitional season. Sometime around the third week in September, we will start to see a weather change. Most of you that dove hunt in South Texas
Mark Kirshner, San Antonio, had his hands full when this 40-inch redfish decided to take his piggy perch for lunch. Fish was CPR’d after photo by Steve Schultz Outdoors.
Ryan Wyatt caught this 28-inch speck last month fish with Steve Schultz Outdoors. Fish was CPR’d (Caught-Photoed-Released) after photos.
know that we always have some sort of weather change opening weekend. Barometric pressures will start having an effect on fish feeding as soon as these weather patterns start to change. Wherever warm and cold air masses meet, storms begin to brew. In the process, there are often rapid changes in temperature, wind direction and barometric pressure that affect fishing. While that impending storm front might cause an angler without raingear some discomfort, it can also trigger a hot bite. The most interesting observation is that the actual pressure level itself is relatively unimportant; it’s the direction in which the barometric pressure is heading, rising or falling that has the most significant effect on fishing success. Simply stated: Rising pressure generally shuts the fish off, while dropping pressure turns the fish on and almost always improves your catch rate. Speaking of fall fishing, I can’t wait for cooler temperatures to arrive. This should be the month we start to see schooling reds starting to show up along our shorelines and flats. Typically, these fish will hang around our bays and estuaries for weeks feeding before they migrate to the gulf for the winter. Targeting these schools depends a lot on the weather. Calm, clear days are best for site casting these brutes and can really test the durability of your equipment. I’m always prepared with a rod rigged up with a gold spoon or a 1/4 oz. jig and a white soft plastic of some sort. You never know when you’re going to jump a school, so best be prepared. 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. Also, start planning your winter trips. I will be booking wade fishing trips in Port Mansfield again this winter. 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.
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San Antonio Construction News • SEPT 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
Dog days
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hree buzzards are sitting on the walkway to the dock. They are fluffing and snapping at each other while staring intently at a dead fish lazily floating in to shore. The fish is still 20 ft out, giving the buzzards a few more minutes to squabble before dinner arrives. Finally they just all fly away, leaving the fish to bob along his way without them. I know just how they feel. I don’t wanna do anything either. Nothing looks good to eat. It’s too hot. Got lots of stuff I could be doing, but I just can’t seem to make myself move! Welcome to the Dog Days of summer. It’s when you just feel dog-tired, go around with a hang-dog expression on your face, feeling dogged out and wanting to join the dogs under the cool front porch. If summer was any longer would we just keep on naming the days after slower and draggier creatures? How about the Slug Days of summer, when it’s all you can do to just drag yourself across the hot sticky pavement. Enough of that! The Dog Days have always been with us. It’s that time of year when summer has officially worn out its welcome. Right between high summer when we are still enjoying being rid of winter and Indian summer, when we can begin to feel the first subtle changes of fall coming and we want to cherish every last warm afternoon, because we know are going to miss them when winter comes. Humans are not the only ones who go through this. Neither are buzzards and dogs. The thing I know best is fish, stripers in particular, and they can really have a
tough go of it this time of year. Since stripers come from the Atlantic, the kind of long hot summers we treat them to in Texas are not well received. They don’t tolerate the high water temperatures very well and they feel a strong tendency to want to be traveling down stream, heading back to salt-water for winter. In a lake they just end up like my pup that sleeps by the back door. They know they need out, but they can’t get there. In just a few weeks it will cool off enough to trigger the stripers starting to feed hard in preparation for spawning in the spring. This summer we have been able to keep the striper bite going and even bring in some larger fish by reviving our downrigger fishing. They have been steady for this time of year with some hint of topwater feeding that we should start to see as fall gets here. If you find yourself in the Hill Country hunting doves or getting the deer lease ready, save a little time to get on the water. Some the best fishing and prettiest days on the lake are just around the corner. It’s hard to beat a fish fry in the pasture under a starry sky!
Half or Full Day Fishing Trips All Bait, Tackle & Equipment Furnished Your catch Filleted and Bagged for You Furnish your TPWD Fishing License & Refreshments, and WE DO THE REST!
Ken Milam Guide Service (325) 379-2051 www.striperfever.com
First keeper
Proud papa Roman Perez with M&M Metals Inc. shared this photo of his 11-year-old daughter’s, Romy Perez, first keeper – a 26-in. redfish, Aug. 4 while fishing in St. Charles Bay. Congratulations Romy! -cmw
San Antonio Construction News • SEPT 2018
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Big game bucket list
ack McKinney, Voges Drilling Company loves the thrill of the hunt. He shared these photos of some of his big game trophies from North America. –cmw
Arizona black bear
Pronghorn antelope from West Texas ➤ Arizona elk
West Texas mule deer
➤ Alaskan mountain goat
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San Antonio Construction News • SEPT 2018
San Antonio Construction News • SEPT 2018
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Accolades of excellence
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he Associated Builders & Contractors South Texas Chapter (ABC) held their annual Excellence in Construction Awards on Aug. 2. Over 200 anxious guests were in attendance to see who would go home with the coveted Eagle award. –cmw
2018 Safety Excellence Award winners: Under 100,000 Man Hours Gold – Bartlett Cocke General Contractors LLC Silver – Middleman Construction Bronze - Keller Martin Construction 100,000 to 500,000 Man Hours Gold – SpawGlass Contractors Silver – Alpha Building Corporation Bronze – Teal Construction Company Over 500,000 Man Hours Gold – Joeris General Contractors Silver – TDIndustries Bronze – Southwest Electrical Contracting Company 2018 Diamond S.T.E.P. Award winners: Bartlett Cocke General Contractors LLC
2018 Platinum S.T.E.P. Award winners: Joeris General Contractors Middleman Construction Company LLC Rogers O’Brien Construction SpawGlass Contractors TDIndustries W.G. Yates & Sons Construction
Industrial Profession of the Year Steven Cannon, Gardner Law
Volunteer of the Year Nick Metcalf, BizDoc
2018 Gold S.T.E.P. Award winners: Alpha Building Corporation Baker Triangle BETCO Scaffolds Central Electric Keller Martin Construction Marksmen General Contractors M.K. Marlow Company LLC Moore Erection Smithers Merchant Builders The Koehler Company Tradesmen International
Excel Group Garney Companies Harvey Cleary Builders Keystone Concrete Placement Metropolitan Contracting Company Saulsbury Industries Southwest Electrical Contracting Services Teal Construction TIC – The Industrial Company
2018 Silver S.T.E.P. Award winners: A/C Technical Services Aerohead Mechanical, A Division of the Aerohead Group Jordan Foster Construction Marek Brothers Systems
Supplier of the Year Ben Pratt, HD Supply White Cap
General Contractor of the Year Jason Harmon, Metropolitan Contracting
Commercial Electrical – Less than $2 Million Central Electric – Project Tech
Specialty Contractor – Other Special Construction – More than $10 Million Keystone Concrete Placement – HCA Methodist Expansion
Subcontractor of the Year Rodney Lines, TDIndustries
Chairman’s Award Michael Shannon, City of San Antonio
Other Construction - $2 to $10 Million SpawGlass Contractors – Confluence Park
Commercial Electrical – Less than $2 Million Central Electrical – Monterrey Iron: New Service & Shear Installation
Historical Restoration – Less than $2 Million Metropolitan Contracting – Scaleworks at the Savoy Building
Historical Restoration - $2 to $10 Million Joeris General Contractors – CAST Tech High School Specialty Contractor – Interiors – All Contract Amounts MK Marlow Company LLC – San Antonio International Airport Consolidated Rental Car Facility
Renovation – Less than $4 Million Alpha Building Corporation – Hurricane Harvey Repairs
continued on Page 18
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San Antonio Construction News • SEPT 2018
continued from page 17
Renovation - $4 to $10 Million Metropolitan Contracting – Voigt Park Community Center and Pool
Commercial $10 to $25 Million Joeris General Contractors – HOLT Cat Headquarters and Manufacturing Facility
Other Construction – Less than $2 Million Alpha Building Corporation – Jenny Aircraft Display
Institutional $10 to $25 Million Marksmen General Contractors – North East ISD Sports Park Improvements
Commercial - $2 to $5 Million Metropolitan Contracting – Elmira New Building and Renovation
Institutional $25 to $100 Barlett Cocke General Contractors LLC – Seguin High School
Commercial $25 to $100 Million Jordan Foster Construction – Security Service Federal Credit Union Events and Amenity Center
San Antonio Construction News • SEPT 2018
Page 19
Old Havana
W
alking into the ballroom at the Hilton Garden Inn in Universal City, one might think you had just time warped back to old Havana with the multitude of tropical plants, women’s colorful attire, Guayabera shirts, fedoras and the aroma of Cuban cuisine. Members and guests of the Hispanic Contractors Association de San Antonio (HCAdeSA) were treated to the sights and sounds of Havana’s past on Jul. 19 for their 9th annual Diversity Awards Gala. Complete with cigar rolling and live music, everyone had a festive time! Not present to receive his Volunteer of the Year award was Caleb Casarez. Congratulations to all the winners. –cmw
Diversity Champion of the Year Michael Sindon
General Contractor Under $10 Million Turner Construction Company
Corporate Sponsor of the Year - Jeffrey Arndt, VIA Metropolitan Transit
Professional Services Provider of the Year SHORM Consulting
Safety Program of the Year Joeris General Contractors
Safety Program of the Year - Central Builders Inc.
General Contractor Over $10 Million SpawGlass Contractors Inc.
Project Owners Under $10 Million Alamo Colleges District
Diversity Advocate of the Year - Turner Construction Company
SMWVBE General Contractor of the Year Tejas Premier Building Contractor
SMWVBE Subcontractor of the Year Pro Landscape Solutions
Architect/Designer of the Year Muñoz & Co.
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San Antonio Construction News • SEPT 2018
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
Healthy buildings, healthy people Mary Bartlett, Partner, AIA, RID, LEED AP Marmon Mok Architecture San Antonio, TX
B
artlett is an architect with over 25 years of experience, working on civic, corporate and higher education projects.
What are the benefits of green building? Green building has significant benefits for the environment and the building occupants. For the building, it’ll use less water and energy, will have better indoor air quality, and will incorporate more natural light. As a result, the occupants’ health and wellbeing will be improved and their workplace productivity will increase. How is green building related to smart growth and sustainable development? It is an approach that specifically addresses and minimizes the harmful effects of the building on the environment during construction and throughout its operation and habitation. Green building also follows the idea that healthy buildings make healthy people. It ensures good health and wellbeing are addressed through design, finding practical solutions to provide clean water, affordable and clean energy, responsible consumptions, and production.
What are the economic benefits of green or sustainable building and development? Green building leads to lower life cycle costs, lowering water and energy bills and long-term maintenance costs. Material selections are also more durable and therefore fewer are required. Aside from the physical costs, the building’s marketability increases as the majority of today’s consumers highly value sustainability and enhanced quality of life and productivity in spaces. What are the major changes in your industry relating to green building? I think the major changes are how the codes are now mandating many of the green building practices. Additionally, the industry is looking to improve the entire building for its occupants. For example, the WELL building practices include air, water, nourishment, light, fitness, comfort, and mind.
A construction standard John O’Connor, Director of Preconstruction Balfour Beatty Dallas, TX
J
ohn O’Connor is an experienced director of preconstruction with a demonstrated history of working in the construction industry. He holds a Bachelor of Science Civil Engineering degree focused in Civil Engineering from Michigan Technological University.
What are the benefits of green building? Green building takes an approach that meshes building construction with the surrounding environment. When done correctly, the benefits can be recognized by those who occupy the building, in addition to owners responsible for the long-term operation and maintenance of the building. For end-users, benefits often include increased natural lighting that provides a healthier and more productive work environment. Natural lighting can also reduce operating costs for owners by reducing power consumption by artificial lighting. How is green building related to smart growth and sustainable development? Green building is the construction process to achieve smart growth and sustainable development. Designed to create environmentally friendly work and living spaces, the process promotes the efficient use of the available space, minimizes waste during the building process, and utilizes materials that reduce operations and maintenance (O&M) costs. Green building also considers the longterm function of buildings and how to
maximize the surrounding environment by thoughtfully evaluating building orientation and minimizing the impact on the existing site and surrounding area. Simply evaluating a new structure’s orientation and its impact on the site can affect mechanical equipment efficiencies, electrical power needs and the natural drainage of the site. What are the economic benefits of green or sustainable building and development? By leveraging sustainable energy sources such as solar power or geothermal systems, economic benefits are inherent in green buildings which are more efficient and provide power to the grid. Green buildings promote the use of recycled materials like reclaimed wood, recycled steel and products that come from recycled materials. These environments also take into careful consideration the health of the end-users in regard to air quality and lighting, which in turn creates healthier and more productive living and work environments. What are the major changes in your industry relating to green building? Green building practices are becom-
GREEN BUILDING
Sept: Green Building Nov: Architecture & Engineering Oct: Specialty Contractors Dec: Construction Equipment
What is the most significant challenge your industry faces relating to green building? I think the biggest challenge is educating the public and clients on the science behind the green building movement and understanding the long-term benefits versus the short-term investment.
ments, and major renovations shall be carbon neutral by 2030,’ and the push for net-zero buildings, meaning the building creates more energy than it consumes. In response to this goal, there is a renewed enthusiasm for development of new and creative alternatives of products and materials.
Are green buildings more expensive to construct? Why? I think the key word in this question is construct, and to that point, yes and no. You can make always make design choices that will make the building more expensive to construct. Typically, to construct a green building through the use of material choices and the conscious effort to make the building more efficient, it does not cost more. The bottom line is, green buildings are designed for the present and future, to last, to enhance, and to conserve, both dollars and resources like energy and water.
Have there been any significant code or regulation changes regarding green building? Yes, the building codes are changing to require sustainable requirements instead of just making them optional. The necessity established by new codes and regulations makes many of the issues more mainstream, enhancing the conversation of green building and continuing to push research and innovation. In turn, the bar for green buildings keeps rising.
What are the cost increases relating to green building? There doesn’t have to be a cost increase, but some of the choices made towards green building can be more expensive: many times it depends on geographic location and available access to water, alternative energy sources, and sustainable and green materials. What is on the horizon for your industry? We are still moving towards the goal set for 2030, ‘All new buildings, develop-
ing more of the standard for construction in the industry today. There are many benefits for building owners when it comes to lower O&M costs and investment values, although those benefits come with additional initial construction costs. The most notable changes we see are changes being made to building codes and local jurisdiction codes for building in large metropolitan areas. What is the most significant challenge your industry faces relating to green building? Education, understanding the requirements and helping the designers with constructability of the new systems. The next challenge is understanding what the owner’s ultimate goal is for their project. Are green buildings more expensive to construct? Why? Although the long-term O&M cost savings are well documented, green buildings are more expensive to build. Green buildings often require new and less available materials such as Forest Stewardship Council-certified (FCS) wood products. Green building systems may also require additional layers, whether it’s additional insulation in wall and roof systems or additional valves and controls to enhance mechanical systems. Also, commissioning costs to verify buildings have been constructed to meet the efficiency requirements to be designated a green building. What are the cost increases relating to green building? Ultimately the cost increase revolves around new, unknown processes and the requirement to prove the buildings achieve the green building designation. I
How are buildings certified as green in the U.S.? There are a few ways to validate the sustainable aspects of a building with the following standards of LEED certification Leadership in Energy and Environmental Design; CHPS - Consortium for High Performance Schools; Energy Star – energy consuming products Green Globes; GBCI and WELL Building Standard. Founded in 1953, Marmon Mok is a leading architectural design practice in the San Antonio community and throughout the state of Texas. -cmw
believe as these new processes and systems are increasingly utilized, it will be understood they achieve green building standards and will not require the extreme cost of verification. What is on the horizon for your industry? I believe green building practices that save on O&M costs will continue to be more of a requirement than a choice in the future for developers and owners. Builders will have to be better informed of these changes in order to anticipate green-building trends that will affect the construction processes for their projects. Have there been any significant code or regulation changes regarding green building? Green building practices have certainly influenced changes to building codes. For instance, the electrical energy codes now require lighting control systems in institutional facilities like schools to reduce power consumption by shutting off lights when rooms are not in use or are unoccupied. How are buildings certified as green in the U.S.? Buildings in the United States are primarily certified through the U.S. Green Building Council’s LEED® green building program. However, some major metropolitan municipalities like Dallas and Austin are adopting their own green building requirements as part of their building codes, but they do not provide certifications. Balfour Beatty is a full-service general contractor with offices throughout the continental US. –cmw
San Antonio Construction News • SEPT 2018
Page 21
THIS TH MON
GREEN BUILDING
To represent your company in an upcoming FOCUS, contact SAeditor@ConstructionNews.net (210) 308-5800
NEXT MONTH (October 2018) SPECIALTY CONTRACTORS
A better tomorrow Ryan Therrell, Director of Business Development The Beck Group Austin, TX
F
ounded in 1912, The Beck Group is a collaborative team of designers, builders and technology experts, offering planning, architecture, interior design, construction, sustainability and technology consulting services. By integrating architecture and construction, Beck provides a unique approach to projects that transforms the way organizations design and build. How is green building related to smart growth and sustainable development? Green buildings are only a piece of the sustainable development pie. Architects and contractors historically have focused mainly on the building, but in order to improve our lives and the environment, we need to look beyond the buildings in a more inclusive way to the surrounding communities and regions. We need to ask questions such as: How can we impact health? How can we develop in a way that can add value and regenerate our surroundings? What are the benefits of green building? Energy and water savings are the most obvious economic and financial benefits both in operational cost and resource conservation. Additional benefits
to building owners include operational savings, better marketability and branding, improved recruiting and retention of top talent, reduced healthcare costs, and increased property value. Benefits to employees include improved health, comfort, overall well-being and productivity. What are the major changes in your industry relating to green building? Green building discussions are moving beyond looking strictly at operational savings through building performance, but also how health and wellness impacts a company’s bottom line. For example, the WELL Building Standard is new to the market and is focused solely on the occupant. What is the most significant challenge
The beneficial green Lyle Coston, Vice President of Waterproofing & Caulking Chamberlin Roofing & Waterproofing Houston, TX
L
yle Coston has over 20 years experience in sealants and waterproofing. He holds a BBA in Business Management from the University of Phoenix Houston. He has been part of the Chamberlin family for 18 years and is well versed in green building and sustainability.
What are the benefits of green building? The benefits of green building are that it provides the owner with a longterm investment that will pay for itself over the life of the building. The more energy efficient a building is will help with the energy costs, which will pay for those upgrades (or code requirements) during construction, like continuous insulation and air barriers. What are the economic benefits of green or sustainable building and development? There are many architects that now have enough historical data on green buildings that can prove lower energy costs when owners select options that create a more energy efficient building. Building Enclosure Energy modeling has come a long way with the technological advances that can help show owners the cost impact during construction and
benefits over time. What are the major changes in your industry relating to green building? Major changes related to Division 7 are continuous insulation code requirements. Thermal bridging of metal components like steel studs, Z-furring, metal screws and even flashings have shown with 3-D imaging that the R-Value mentioned on an insulation doesn’t mean that wall will have R-19. The thermal bridging reduces that R-Value significantly so the need for continuous insulation to create a thermal break is needed to get that R-Value back up. What is the most significant challenge your industry faces relating to green building? Design and consistency in the way these projects are being built. We are seeing a significant change in air and va-
your industry faces relating to green building? One of the biggest challenges is effectively dealing with the costs of green building. Are green buildings more expensive to construct? Why? What are the cost increases relating to green building? In Beck’s experience, green buildings don’t necessarily have to cost more. Through an integrated design process that prioritizes holistic, innovative solutions, green buildings can be the same or potentially lower cost than traditional buildings. Another way to look at the cost of green buildings is to look at the lifecycle cost. Being able to quantify the first cost of an energy efficiency strategy as well as the predicted operational savings will provide a simple payback that can help owners make big picture decisions. What is on the horizon for your industry? Actual performance. It’s good to do the up-front analysis and design to a predicted energy efficiency level; but until you verify it, savings are only probable. We include Post Occupancy Evaluation (POE) services as part of our Sustainability consulting services. Have there been any significant code or regulation changes regarding green building?
por barriers as well as insulation. These changes are causing confusion in the architectural and contracting community because not all of these systems have been tested together. They are tested in standalone conditions and pass most ASTMs that are listed, but the entire system is rarely put together to test it as a whole system. Are green buildings more expensive to construct? Why? Green buildings are more expensive to construct because of the requirements to achieve certain LEED Certification levels. The cost impact is due to material selection and design that may otherwise not be required if it was not a green building. Studies have shown that the initial cost is a few percentage points more but when you roll in the cost of that building after five years, the payback may show you that the building will actually cost less. What are the cost increases relating to green building? Testing, continuous insulation, R-Value requirements, whole building envelope testing, and material selection are just a few of the increases but the savings again are on the backside. We have seen buildings that have not followed any guidelines and they are losing either heat or AC at a very rapid pace that could have easily offset those initial costs had they commissioned the air and vapor barrier installation. Images can now show owners where they are
One of the most significant changes is pushing high performance buildings to the new energy codes. Most of the regions of the country that we work in have adopted the 2015 International Energy Conservation Code (IECC), which calls for stricter requirements for building envelopes, lighting, heating and cooling, which lead to operational savings and reduced Green House Gas (GHG) emissions. Additionally, increased commissioning requirements ensure the predicted energy savings are realized. How are buildings certified as green in the U.S.? The most widely recognized green building certification in the world is the United States Green Building Council (USGBC). Their Leadership in Energy and Environmental Design (LEED) certification program sets the standard for building performance. Beyond USGBC’s LEED rating system is the Living Building Challenge, which rewards projects for net zero/net positive energy and water and avoiding chemicals of concern, as well as other imperatives such as beauty and health and happiness. The Beck Group is a full-service architecture and construction firm with offices in Atlanta, Tampa, Mexico City, Denver, Austin, Dallas and Fort Worth. -cmw
losing the AC or heat very easily which are sometimes surprising to see. What is on the horizon for your industry? More green roofs and amenity decks, continuous insulation and roof assemblies that are reflective with higher R-Value requirements where it is a minimum not an average. Have their been any significant code or regulation changes regarding green building? Yes, there have been code changes but it becomes a political nightmare within each city or county on who is adopting those codes and then hiring the personnel in the permitting office to enforce or implement the changes through plan review and permitting. How are buildings certified as green in the U.S.? USGBC is the standard when it comes to LEED Certification. The United States Green Building Council was started in 1993 during a founding meeting at the American Institute of Architects (AIA). Continuous collaboration and education with industry experts have helped to push this certification as a standard in LEED certification. Chamberlin Roofing & Waterproofing is full-service roofing and waterproofing company with offices in Texas & Oklahoma. -cmw
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San Antonio Construction News • SEPT 2018
Association Calendar
Submitted to Construction News
Round-Up
Sundt Construction Inc. is pleased to announced the addition of Sean Christopherson as project engineer. He joins the Sundt family after serving as a senior project engineer with the U.S. Army Corps of Engineers. He holds a Bachelor’s degree in Industrial technologies and management from Illinois Institute of Technology. -cmw
Tejas Equipment Rental & Sales is pleased to announce Raymond Prior, CPA has joined the Tejas family. He has 25-plus years of rental, finance, accounting and leadership experience. Prior has a dual BBA from Temple University in Finance and Human Resource Administration. -cmw
Freese and Nichols Inc. is pleased to announce that Naveen Chillara, PE has joined the firm’s Water Resource Design Division as senior project manager and water resource design engineer for the southeast Texas and Louisiana markets. Chillara earned his masters degree in environmental engineering from the University of New Orleans and his bachelors degree in civil engineering from Jawaharlal Nehru Technological University in Hyderabad, India. -cmw RVK Architects is pleased to announce Judith K. Zimmerman, RID, LEED AP, has been named President. After earning her degree in Interior Design from Iowa State University, Zimmerman joined the RVK family. She became a Registered Interior Designer in 1986. -cmw
Fishing masons
O
n Jul. 14, 14 boats gathered in Aransas Pass at Redfish Bay Boathouse for the San Antonio Masonry Contractors Association’s (SAMCA) annual fishing tournament.
2nd Place Winners: Guided Heavy Stringer – Rick Stone Masonry #1 Open Class Heavy Stringer – Los Vatos Locos
Content submitted by Associations to Construction News ABC
Associated Builders & Contractors
Sept. 6: Breakfast Club, Alamo Café, 14250 San Pedro Ave., 7:30-8:30am. Sept. 10: Fall Golf Tournament, La Cantera Golf Club, 16641 La Canter Pkwy., 11:30am-5pm. Sept. 27: Happy Hour, The Blue Box at the Pearl, 312 Pearl Pkwy., #2107, 4:30-6pm. For more info, contact Alissa Miller at alissa@abcsouthtexas.org or 210-342-1994
Sept. 26: 41st Annual Hunter Symposium, Bexar Shooting Range, 15391Bexar Bowling, Marion, TX 1pm. For more info, call Sandee Morgan at 210-822-3763 NAWIC
National Assn. of Women in Construction
Sept. 5: General Meeting & New Board Installation, The Petroleum Club, 8620 N. New Braunfels. For more info, call 210639-2489 or email Rebecca.rodriguez@ zachrycorp.com
AGC
Associated General Contractors
Sept. 4: BCA Membership Meeting, AGC Offices, 10806 Gulfdale, 4pm. Sept. 8: Construction Cup Slow-Pitch Softball Tournament, Rusty Lyons Solftball Fields, 6300 N. McCullough Ave. For more info, call 210-349-4921
NECA
National Electrical Contractors Assn.
Sept. 29 – Oct. 2: NECA Convention & Trade Show, Philadelphia, PA. For more info, contact Les Moynahan at 210-2266331 PHCC
ASA
American Subcontractors Assn.
Sept. 27: ASA Pour Off & Texas Hold’em Mixer, Aggie Park, 6205 West Ave., 6-9pm. For more info, call Jennifer Swinney at 210-349-2105
Plumbing Heating Cooling Contractors
Sept. 29: PHCC-San Antonio Chapter 24th Annual Fishing Tournament, Rockport, TX. For more info, call Heidi Trimble at 210-824-7422 or go to www.phcc-sanantonio.org
HCAdeSA
Hispanic Contractors Assn. de San Antonio
Sept.19: Hispanic Heritage Celebration. For more info, call Dave Sanchez at 210444-1100 or go to www.hcadesa.org IEC
SAMCA
San Antonio Masonry Contractors Assn.
Sept. 27: Mixer/Auction Fundraiser, Tycoon Flats, 2926 N. St. Mary’s, 6-9pm. For more info, contact Debbie at 830606-5556
Independent Electrical Contractors
Sept. 4: IEC School Year begins, IEC Training Center, 5511 Ingram Rd., 5:30pm. Sept. 18-22: 61st Annual IEC National Conference, Indianapolis, IN. For more info, contact Julie Howard at 210-431-9861 or email jhoward@iecsanantonio.com MCA-SMACNA INC
Mechanical Contractors Assn. Sheet Metal & A/C Nat’l Assn.
TACCA
Texas Air Conditioning Contractors Assn. Greater San Antonio
Sept. 7-8: TACCA Greater San Antonio 25th Annual Fishing Tournament, Doc’s Seafood & Steaks, 13309 S. Padre Island Dr., Corpus Christi, TX. Sept. 20: Membership Mixer, Alamo Café, 14250 San Pedro Ave. For more info, call Dawn Thompson at 210-901-4222
Sept. 12: Regular & Associates Meeting, The Petroleum Club, 8620 N. New Braunfels, 7th Flr.
Mixin laughs
I
t was all fun and laughs at the Texas Air Conditioning Contractors Associaton’s (TACCA) membership networking mixer held on Jul. 19 at Alamo Café. –cwm
1st Place Guided Heavy Stringer – Boral Concrete
Brad Sobotik, Justin Skloss and Chase Anderson share a laugh.
1st Place Open Class Heavy Redfish – I-10 Building Materials #2
1st Place Open Class Heavy Trout – Mom & Pops A-Team
1st Place Open Class Heavy Stringer – Smith & Sons #2
TACCA Executive Director Dawn Thompson and Marving Ohlenbusch, Alamo Crane Service
Charles Rios, Dawn Thompson and David Hiller cutting up at the bar.
San Antonio Construction News • SEPT 2018
Page 23
continued from Page 1 — “Randy style”
What would you like to see more of in Construction News? I would like to see more representation from San Antonio legal, accounting, and insurance firms in the columns. Steve Bankler, Steve Bankler CPA I would like to see more information on how we are going to get young people into construction. Mike Grendell, Midco Sling of San Antonio
Big Red was as much a part of Randy, as Randy was of it. He was easily recognized and found by his truck. Five kids, several grandkids and a great grandchild grew up piling into that old truck. It was a get-away vehicle for his best friend’s daughter’s wedding. And when Randy threw parties down in Port Aransas, he would drive Big Red out to the second sandbar. Now how many people do you know that do that? “It was an attention getter,” recalls Heye. “We worked on Big Red off and on for about six years during down times after Randy gave me the truck. He gave the motor from the truck to an employee to put in a jet boat. The old American Flag wrap had begun withering away, so we stripped it down to the original paint and re-painted it. “Last year, James Heye and Antz Mackechney said, ‘this year we’re gonna get this thing up on the roof,’ but before we could do it, Randy was gone.” On Aug. 15, 2017, at the age of 62, Wyatt passed away. “He was a big man, with a big heart. He gave to his friends and customers with an open heart and
he lived life to the fullest.” As the anniversary of Wyatt’s death approached, preparations were underway to get Big Red on the roof of Planet Pickup. On Jul. 28 as a memorial to the man whose friendship, business and style was instrumental in rocketing Planet Pickup’s success, Big Red was in place. It was hoisted by AmeriCRANE Rentals LP and securely mounted on the roof of Planet Pickup using two half-inch steel plates that had been mounted directly to the roof for both pairs of tires (front and back). To ensure Big Red stayed intact, collars made of 4x4 square tubing were welded to the axles. Two days later, the City of San Antonio would show up to see what was going on and gave the notorious Randy Wyatt “thumbs-up.” “I know Randy is looking down from heaven smiling and giving his own thumbs up.” Here’s to you Randy, “The road goes on forever, and the party never ends.” Anthony’s Planet Pickup sells and installs a variety of truck accessories. -cmw
I like what Construction News is doing. I like the personal features and learning what makes people tick. I always look at the hunting and personal items. Mark Jones, Intertech Commercial Flooring Honestly, maybe some more up and coming work or areas that may be getting more funding than others, such as how the Veterans Affairs are the government entities that have received a majority of funding compared to other areas. This would be to familiarize and help companies plan for jobs to bid or sectors in construction that they may want to migrate towards. Carlos Sanchez, Precision Scheduling Consultants LLC I would like to see links to businesses to get more leads to jobs like Home Advisor, etc. Also materials advertising like special discounts, etc. David Duran, The Master’s Construction Services We would like to see more featured projects rather than just one a month. With the construction community being as busy as it is, there should be multiple pro-jects worth reporting on throughout the month. Shea Shiley, Dausin Electric Company
The construction industry is a large, diverse industry but close knit. What if there was a social calendar added to Construction News? If people knew that they were going to have functions what better way than to share via Construction News. Network and connect with fellow likeminded individuals. Rhondie Huron, Dumas Hardware I like reading about the projects and what’s going on around town with the different companies and organizations and would like to see more of that. Terri Pasley, Sundt Construction More company profiles, that way you familiarize yourself with different companies. Buzz Miller, Allen & Allen Co. I think it would be great if there was a column for “Upcoming Events.” So many times I read Construction News and see photos and write-ups about events that I wish I had known about. I don’t even think the column would need details about the event…just the event name, date and contact information of the person to call for details. Title it “Mark Your Calendar.” Stacy Reynolds, Alamo Iron Works I love the paper and can’t think of anything else I would like to see. Love the photos of people in our industry and the subcontractor info. Its perfect already! Connie Phillips, Structura Would love to see some features on trends in the industry – lean, technology changes, impact of worker shortage, etc. Angela Cardwell, Joeris General Contractors
continued from Page 1 — If it ain’t broke… Eichelbaum, whom is a Certified Public Accountant had spent almost eight years in public accounting before making a career move that brought him to Cram Roofing. “I met Gary through one of the partners at the firm I was working with who had met Gary on a fishing trip. The opportunity came to me when Gary was looking for a new controller. I went through the entire interview process but knew at the beginning this was the place for me.” Coming from public accounting, Eichelbaum had some knowledge of the construction industry, at least from a business perspective, through the clientele he worked with. He quickly learned the roofing industry from sitting in meetings, working side by side with Cram and through some hands-on experience. As with any new employee, Eichelbaum spent a few months in the field learning the trade. He learned estimating, which came easy to him because of his love for numbers. By 2007, he was on track to be groomed to take over the reins. Eichelbaum is not planning on changing much he says. “Gary has run a very suc-
cessful company for 30-plus years and if it ain’t broke, don’t fix it. That’s my motto. “I’ve been by Gary’s side for the past 16 years so I’ve learned a tremendous amount from him. We might tweak a few things here and there, but not a lot is going to change. We’re going to continue doing what we have been doing very well, working with quality-oriented customers, exceeding their expectations and keeping a good healthy family atmosphere.” “We are very family oriented, not just with our own families, but we are a family internally and that’s one of the reasons we are successful. We are a team. Everyone pitches in when work needs to be done. When needed, our estimators are out in the field helping to fill gaps because of the heat. Everyone pitches in when they need to pitch in. It’s part of the quality that we have here and we love each other like family. “We’ll continue to give back to the community that we service. We’re all in this together,” adds Christy Rhone, director of business development and marketing. Cram Roofing is a full-service roofing contractor in San Antonio. –cmw
continued from Page 1 — Appearance can be deceiving wall, p-lam cabinets and countertops and stained concrete floors. Forum Construction began working alongside Vulcan Materials from the budget/preliminary design phase and was able to suggest design value engineering options that would allow Vulcan to build not only what they needed but what they wanted. The only obstacle Forum faced was getting the cost of the project within the constraints of the project’s budget. Rather than hiring an architectural firm, Forum produced the “architectural” plans that were used for construction adding a unique aspect to the project. They teamed up with Mike Zezula with Beicker Consultants for the structural engineering and Ed Monaco with Edward C Monaco PE Inc. Consulting Engineers for the MEP engineering. Additionally, the
wood framed office building is not a typical project for Forum since Forum primarily does pre-engineered metal buildings with office finish out within the building. The owner, Vulcan Materials, performed the site work and civil engineering. “Superintendent Bradley Domel and myself enjoyed worked alongside Vulcan Materials and we look forward to this being a long-term relationship. We have worked closely with Beicker Consultants, Ed Monaco and Rocking Engineering for quite a few years and we value the ease of working together. We know what to expect from them and they know what to expect from us,” says Forum Construction owner & project manager, Eric Stirm. Forum is a full-service general contractor specializing in design build, pre-engineered metal buildings and office buildings. -cmw
Construction News ON LOCATION
Knock out equipment
Robert Allen stands outside the dozer driven by Steve Clark at T-K-O Equipment Co. in New Braunfels, TX. -cmw
Construction News ON LOCATION
Radiant personality
L-R: Shane Boscamp, Austin Boscamp and Wes Zunker at Radiant Roofing Boss Metal in New Braunfels. -cmw
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San Antonio Construction News • SEPT 2018
S
ometimes when you change something that has worked for 28 years you get that tingle in your stomach that says, “Oh crap what have we done.” Well that little tingle might have been there for Doug & Cindy Niznik and their hosts, but the first Shootin’ For Scholarships event came out just fine. Held at the National Skeet Shooting Complex on August 11 there were a total of 150 shooters in 11 classes. Hosts for the event were Johnston Industries, Lynwood Building Materials, Inc., T&D Morvits and Niznik Concrete Contractors. Besides the shoot, there were card games, raffle, white board and the big live auction which raised money to start a trust that will fund scholarships this year and in the future. Niznik and crew are already planning a big two-day affair for next year that will
A fantastic start celebrate the 30th anniversary of helping a good cause. -bd Winners of the shoot included: Pro Division: 1st: Tony Rivera, Rivera (99) 2nd: Rudy Bazan, Rivera (97) 3rd: Jay Gable, Security Service (96) Open Division – Class A 1st: Riley Smothers, TPG (96) 2nd: Brooks Holzhouez, Rivera (95) 3rd: art Rivera, Rivera (95) Open Division – Class B 1st: Sean McGarity, Keystone C (81) 2nd: Matt Weathersby, CL Concrete (81) 3rd: Tobin Stillwell, Brian Childress (80)
Open Division – Class C 1st: Nicole Kramer, Ranger C (68) 2nd: Jeb Boulanger, Niznik (68) 3rd: Jody Hayden, Lone Star Gallery (68) Ladies Division – Class A 1st: Tricia Kocurek, Security Service (94) 2nd: Shannon Young, Security Serv (89) 3rd: Taylor Nicosia, Frank Morvita (83) Ladies Division – Class B 1st: Cortney Johnston,Johnston Ind (66) 2nd: Stacy Wheation, Keystone (55) 3rd: Lori Hidy, Niznik (55) Ladies Division – Class C 1st: Jena Christesson, Lynwood (50) 2nd: Irene Reyes, Suncoast (44)
3rd: Jennifer McGarity, (37) Youth Division – Class A 1st: Riley Smothers, TPG (96) 2nd: Zane Childress, B. Childress (90) 3rd: Logan Winningham, F. Moravits (88) Youth Division – Class B 1st: Carson Schultz, Niznik, (85) 2nd: Matthew Santander, F Moravits (85) 3rd: Taylor Nicosia, F Moravits (83) Youth Division – Class C 1st: Jeb Boulanger, Niznik (68) 2nd: Conner Schultz, Niznik (66) 3rd: Zain Niznik, Niznik (52) 4-H Youth Riley Smothers, TPG (96) Scholarship Winner
4-H Youth & Scholarship Winner
1st Place Open Class B
1st Place Ladies Class B
1st Place Ladies Class C
1st Place Youth Class B
1st Place Ladies Class A
San Antonio Construction News • SEPT 2018
Page 25
Droning on
J
Joe Baker, Sky Soldier Drones LLC
oe Baker sure is getting chased and chatted up these days. That’s because the Sky Soldier Drones LLC operations officer runs errands sporting his company polo, which features a huge drone and “Flight Instructor Pilot” on it. “A guy who saw the shirt chased me down a hallway and asked for a business card,” he says. “Even when I walk into Starbucks wearing the shirt, people ask me if I fly drones and say it is so cool.” Baker thinks it’s cool too, especially for a first business. With 23 years of active duty military service as an airborne infantry soldier, he got into drones by training Fort Benning’s UAP program instructors. After his service, he ran into a friend troubled by an incident involving a drone and an unlicensed pilot. Knowing his background, the pal nudged Baker to start a drone business. “I didn’t want to get a Masters degree or sit in an office. I wanted to be outside doing something different,” he says. “Last June, I took my two years of curriculum development experience and established Sky Soldier Drones LLC.”
He provides developers and construction companies with aerial construction progression photos and videos, tracking projects from start to finish, and also offers Aerial Inspections Visual Integrity Archive for dams and bridges. Out of a drone’s many applications, he says he chose construction “because it’s fascinating how fast infrastructure and buildings can be built.” Baker’s new gig allows him to spend more time with wife/company CFO Cathi and the all-veteran staff that Baker has handpicked. “We like to keep it in the family as far as veterans,” he says. “After work, we hang out, bond and talk about our experiences. It’s a family thing and an extension of the military community.” “I’ve spent my whole adult life in the military and now here I am in a whole different world,” Baker adds. “It’s been a learning curve and we get out as much as we can to introduce ourselves. It’s been interesting and a lot of fun.” San Antonio subcontractor Sky Soldier Drones LLC offers aerial imagery and project tracking. –mjm
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San Antonio Construction News • SEPT 2018
Diversity at its best!
W
inners of the Associated General Contractors (AGC) Outstanding Construction Awards were announced Jun. 18 at the Airport Hilton. Projects were judged on difficulty in construction resulting from design, location, materials and many other aspects like unusual construction techniques, final appearance, timeliness, and quality of the finished product to name a few. Congratulations to all! –cmw
Design Build 3 Over $30 Million: Turner Construction Company The Alamodome Upgrades & Renovation
Specialty Construction: Morganti Texas/Casias JVSWSA 2017 Attraction – Wave Breaker: The Rescue Coaster
Health Care 3 Over $30 Million: Skanska USA, Methodist Hospital Children’s Hospital Tower Expansion & Renovation
Building 6 Over $75 Million: Bartlett Cocke/Koehler, A Joint Venture New Seguin High School
Building 3 $5-10 Million: Joeris General Contractors Ltd. Ferrari San Antonio
Building 5 $30-75 Million: Lindbeck Group LLC, The Witte Museum
Industrial/Warehouse 2 Over $5 Million: F.A. Nunnelly General Contrctor, New Braunfels Food Bank
Historic Renovation: Joeris General Contractors Ltd. CAST Tech High School
Other Specialty: Alterman Inc., Valero HQ, EOC LED Video Hall
Interior Finish-Out 1 Under $500,000: Turner Construction Company Company Central Texas Headquarters Renovation
Building 2 $2-5 Million: Alphine Contracting Seven Oaks Business Park
Interior Finish-Out Over $500,000: Turner Construction The Four Seasons Houston Lobby & Grand Staircase Renovation Residential Multi-Family: Galaxy Builders Ltd., Lookout Springs Apartments
continued on Page 27
San Antonio Construction News • SEPT 2018
Page 27
continued from page 26
Building 4 $10-30 Million: Guido Construction Northside ISD, Nathan Kallison Elementary School
Electrical 3 Over $10 Million: Alterman Inc., SAWS Desalination Plant
Electrical 1 $0-5 Million: Alterman Inc., Alamodome Renovations
JOB SIGHTS
Alejandro Salgado and Ruben Barrera with Thad Ziegler Glass and Antonio Sanchez with RC Page Construction visit at the end of the day at the Enterprise Business Park Phase 1 project in Schertz, TX. RC Page Construction is the general contractor on the project. -cmw
Greg Maxton, President of Lock + Load Walls of Texas at the company’s first wall in San Antonio at the Biodynamic Research Corporation. The general contractor for the project is Metropolitan Contracting. The wall was installed by JDK Associates Inc. -cmw
“Weekend warriors,” Jennifer and Daryl Bratcher take a moment from renovating the old Big “T” Bar in Saint Hedwig to make way for a new coffee house and café. -cmw
Page 28
San Antonio Construction News • SEPT 2018
Extending the Reach Small, Minority, Woman, and Veteran-Owned Business Resource Guide September 2018
s r o ns
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Sp
F.A. NUNNELLY
GENERAL CONTRACTOR
Mark Langford Photography
San Antonio
PRESENTED BY
CONSTRUCTION NEWS
™
The Industry’s Newspaper
Feature Publication Supplement September 2018
2
A Special Thanks
I
t seems like only yesterday that we were putting the finishing touches on the 2017 inaugural edition of “Extending the Reach.” Now here we are in mid-August 2018 doing the same for the second annual feature. The response from last year’s rollout was beyond our expectations and it was an easy decision to publish the feature again. Our goals are the same and that is to help Small, Minority, Woman and Veteran-owned (SMWVO) companies with valuable information they can use to help them achieve success in starting or growing their businesses. Running a business today is a daunting task and it takes a special type of person to risk everything to be his or her own boss. Decisions they make can lead to great success or great failure. The construction industry today has become even more challenging than last year. The expanding economy makes things move at a faster, more dynamic pace and the severe shortage of skilled labor is even worse than last year. These challenges will never stop a true entrepreneur. Actually in most cases it even makes them try that much harder to prove the point they can do it. The big plus of course for these folks is where we live. We are in South Texas in the USA where opportunity is everywhere.
Providing good information or telling you where to find it is the aim of Extending the Reach. As with any business, there are many complex issues an owner must juggle. We hope those reading these pages will come away with better knowledge and direction to help them achieve their goals. We are very grateful to all the accomplished people who spent so much time writing these very informative articles. They were written by people with great experience in their fields that wanted to help those on their way up. Most of them started in the same way and they know that sharing some of that hard-earned knowledge will be helpful to someone working hard to reach their goals. Also, a heartfelt thanks to all our sponsors and advertisers who made this project a reality. The construction industry needs new qualified companies in all fields. In the last 10 years, the San Antonio metropolitan area has exploded with growth, and so with growth comes even more ways to become a company owner. Hard work, good knowledge and the business building spirit will bring our new entrepreneurs to the forefront of the industry. We hope to publish this feature yearly to help the next generation of SMWVOs by “Extending The Reach” again. Buddy Doebbler, Publisher
Feature Publication Supplement to San Antonio Construction News – September 2018
CONTENTS 4
Bexar County Making a Mark on Diversity & Inclusion
5 6 7 8 10 12 13 14 15 16 17 18 19
Fostering Small Business Growth and Sustainability
3
D & I Have Positive Implications for Workforce Development Diversity Programs
Opportunity to Succeed Overcoming Obstacles Frost Tower
Building Compliance in the Construction Industry Legal Agreements
Make Your Presence Known Specialty Certifications SMWVO Owners
Surety 201: Going Beyond the Lunch and Learn Discussions Pros and Cons of Tax Reform The Opportunity is There
September 2018 edition of San Antonio Construction News with additional mailed
distribution in the San Antonio area. San Antonio Construction News is the flagship publication of Construction News, Ltd. Additional copies of this supplement may be purchased for $10.
Publishers................ Buddy & Reesa Doebbler Art Director............................ Reesa Doebbler Managing Editor........................ Carol Wiatrek Production..........................Helen Greenwood Account Manager..................... Dana Calonge Administration.............................. Terri Adams
Contents
E
xtending the Reach is a supplement to the
Photo credits: Aerial photo of Frost Tower courtesy of White Cloud Drones Cover and other aerial photos of San Antonio skyline by Mark Langford Photography.
4
Bexar County Making a Mark on Diversity & Inclusion Trailblazers
B
exar County is working on solutions that offer business owners an equal opportunity to excel towards success in the construction industry. The county invests time bringing information and resources to business owners whether new or established. This is essential to their success, especially as they look to grow.
Renee Watson
Diversity & Inclusion
Mentor Protégé Program The Bexar County’s Mentor Protégé program was established in 2005. The sole purpose of the Mentor Protégé program is to build effective working relationships between leaders of mature established companies and locally owned small businesses so that newer companies can benefit from the wisdom and experience of established firms. 13 firms have completed the program. Eight firms are currently matched thru November 2019. The program recently started with four African-American Business Enterprises (AABE); making up 50 percent of the protégés enrolled in the program. This is a huge milestone for the program setting this kind of precedent. The AABEs leading the way are - Vernon Bryant, owner of BRC Remodeling; Joe Monroe, owner of Consolidated Installation Support; Nehemiah O’Neal owner of O’Neal’s Furniture Assembly; and Alex Pennington, owner of ALP Contracting. “I have very high expectations of how the program will improve my business and standard of living,” says Vernon Bryant. “My expectations are high because of the talented individuals, who have willingly volunteered their time in helping all the protégés prosper in their businesses.” Bringing information and resources to business owners is essential to their success, especially as they look to grow. “Providing the knowledge, skills, and resources for business owners in the construction industry to thrive is essential to a diverse and inclusive workforce,” says Renee Watson, Director of the Bexar County Small Business & Entrepreneurship Department (SBED). The program offers protégés the ability to receive first hand, real world hands on experience from their mentors. “Connecting these diverse business owners to industry veterans through the Mentor-Protégé Program helps them grow and
succeed.” The relationship between the mentor and protégé is a two year commitment where the protégé, two mentors, Associated General Contractors staff, and Watson work together to help develop the protégé firm’s marketing, operations and financial performance. “It’s intriguing for me to be able to get first hand assistance from top tier company professionals that are willing and able to help me become the business owner that I want to be,” says Nehemiah O’Neal. Mentors give their protégés advice and assistance based on their real life business experience, along with one-on-one assistance to help the protégé develop the tools for business capacity. “Our partnership with Bexar County has been fantastic, and has now been a nationally recognized success in helping minority and women-owned construction businesses,” says Doug McMurry, Executive Vice President of AGC San Antonio Chapter. “We look forward to more accomplishments in the future.” Protégés learn they are not alone as part of the program is about receiving guidance. “Being in the mentor protégé program means that I am not working or building my company alone,” says Alex Pennington. The connection between the mentors and protégés will build understanding of the importance of business relationships that can benefit the business community. “Protégés receive knowledge, connections, overall growth and development opportunities that are not only beneficial to them, but the San Antonio community as a whole,” says Bexar County Judge Nelson Wolff.
Feature Publication Supplement to San Antonio Construction News – September 2018
At the 100th Annual AGC of America National Convention in New Orleans, the San Antonio Chapter received the first-ever Chapter Diversity & Inclusion Award, which was created to honor those who promoted diversity and inclusion within the chapter’s leadership, membership, programs and events. The San Antonio chapter’s work with the Black Contractors Association (BCA) and partnership with Bexar County on the “Basics” of Construction Program and the Mentor/Protégé Program were reasons that they were recognized with this honor. The AGC/Bexar County Basics of Construction Training Program is a ten-session educational program designed to assist small business contractors in understanding the basic elements of running a commercial construction business. The sessions inlcuded elements of running a successful construction business, project scheduling, financial management, understanding contracts and more. Once firms complete the Basics Program they are eligible for the Mentor Protégé Program. To date 155 firms have completed the Basics Program. “The Chapter’s commitment to diversity and inclusion began 13 years ago in partnership with Bexar County,” says McMurry. “The team visited Portland, Oregon to learn more about The Stempel Plan, which serves as the foundation for a very successful Mentor/ Protégé Program.” The county’s UTSA (University of Texas at San Antonio) AABE Survey identified a gap in availability and capacity of African American owned businesses in the Alamo Region. From this survey, the AABE Initiative was created in March 2017 to help stimulate local outreach, economic growth, and development. In November 2017, ACCELERATION CONNECTION was held where several African American contractors shared information regarding their most recent projects. This was designed to help build the capacity of AABEs and directly connect with County staff. By assisting with building the capacity of AABEs to work with Bexar County, the county will enhance a robust, diverse pool of businesses and resources to meet the needs of the county residents. “Our economy is strongest when it is inclusive and diverse,” says Wolff, “And our robust SMWBE program works to ensure entrepreneurs and small businesses have the tools and resources they need to succeed.” Submitted by: Small Business & Entrepreneurship Department - Renee Watson, Director Torence White, Contract Compliance Specialist Shantana Robinson, Capacity Building Coordinator rwatson@bexar.org - (210)335-2478
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D&I Have Positive Implications for Workforce Development “It’s hard to separate diversity from workforce development. The two really go hand in hand.”
Doug McMurry
D
uring the national AGC convention in New Orleans this year, the San Antonio Chapter received the first ever award to an AGC chapter for diversity and inclusion. The recognition was especially nice because it happened during the association’s centennial celebration and Renee Watson, director of the Bexar County’s Small Business & Entrepreneurship Department, was there to help accept the award. Like the national community service award the chapter received in 2017, the recognition for diversity and inclusion was the result of dedication and teamwork. The award application leaned heavily on our work with
the Black Contractors Association and our long-time partnership with Bexar County on The Basics and the Mentor/ Protégé Program. The BCA was initiated almost three years ago by Turner Construction and the Alamo City Black Chamber of Commerce. Under the leadership of Henry Boone, it grew to be a viable and productive organization. Today, the BCA is administered by AGC’s Director of Education Dana Marsh and it produces dozens of valuable educational programs and meaningful networking opportunities. Like many AGC member companies, we have a diversity policy. Ours states, “In accordance with our bylaws, the chapter encourages sound business methods tending to raise the standards of construction professionals. To further advance the standards of skill, integrity, and responsibility we embrace the essential values of diversity and inclu-
sion. In doing so, we impart these values in association practices and cultivate a culture of diversity and inclusion within the broader membership.” Our commitment to diversity and inclusion began 13 years ago with a visit to Portland, Oregon to learn more about the Stempel Plan. The plan is a model mentor/protégé program designed to build effective working relationships between leaders of well-established companies and new and emerging contractors. That plan became the foundation for a very successful local mentor/ protégé program. Dozens of chapter leaders have built up the program by serving as devoted mentors. And with the strong support of Watson and Bexar County, the program focuses effectively on small, minority, and women-owned construction businesses. Today, the San Antonio Chapter is the most active of the AGC chapters when it comes to
Amanda Reyna City of SA/ Economic Development Department
T
he City of San Antonio works hard to encourage a thriving entrepreneurial climate and promote the growth of our local small, minority, and women-owned business (S/M/ WBE) community. To accomplish this task, the City has various programs to help small businesses succeed at all stages of development, whether they are at the ideation, startup, or growth phase. These programs help S/M/WBEs access City contract opportunities, receive free mentoring and consulting, and address access to capital through lending opportunities.
$246 million was paid to 503 S/M/WBEs, representing 49% of the City’s contractural spending on contracts in which the SBEDA program applied.
Access to City Contract Opportunities The Small Business Economic Development Advocacy (SBEDA) program was created to increase and promote the equitable use of S/M/WBEs on City contracts. The program leverages the City’s purchasing power and offers incentives and tools for both S/M/WBE prime contractors and subcontractors. Last year, a total of $246 million was paid to 503 local S/M/WBEs. This figure was the largest spend to date since the
program was established, and represented 49% of the City’s spending on contracts in which the SBEDA Program applied. While the City of San Antonio purchases multiple services and goods in varying industries, the construction industry historically presents the greatest opportunities for S/M/WBEs, as the majority of City contract dollars are spent on streets, drainage, and facilities projects. The chart below represents the continued next page (6)
Feature Publication Supplement to San Antonio Construction News – September 2018
Diversity Programs
City of San Antonio: Fostering Small Business Growth and Sustainability
Diversity & Inclusion
Doug McMurry, Executive Vice President Associated General Contractors, San Antonio Chapter
supporting such a program. The prerequisite for the Mentor/ Protégé program is “The Basics,” a tenweek, 20-hour educational course held at the chapter office since 2005. The classes focus on such topics as estimating, financial management, and understanding contracts. The instructors are always dedicated AGC volunteers. And characteristically, Bexar County reimburses the students for the full tuition if they meet certain requirements. Recognition for accomplishments is nice, but the best part of diversity and inclusion may be the positive implications for workforce development. For decades the most vexing problem the construction industry has faced is the shortage of skilled workers. The problem also applies to filling the salaried positions of estimator, superintendent, and project manager. By embracing minority and women-owned businesses, the industry is extending its reach into the labor market. It’s saying, “You are welcome here.” Diversity and inclusion broaden the appeal to future plumbers, electricians, and carpenters. And these values also show a path forward to young entrepreneurs who may want to start their own construction company.
Diversity Programs
6 continued from Page 5 dollars spent last year by the City within the construction industry to S/M/WBEs.
Free Mentoring and Consulting Services The City’s Business Empowerment Program offers free mentoring for small business owners through a partnership with the Alamo Colleges District. The program aims to grow S/M/WBEs through an educational component and mentoring from experienced and successful firms. Since 2012, graduates of the program have reported $61 million in revenue, a 24 percent increase since entering the program. The first phase of the program features a series of educational courses that include the following as an example: How to Write a Business Plan, Access to Credit, Marketing, Managing your Financials, Sustainable Business Practices, and Legal. The second phase of the program allows participants to be paired with an wexperienced and successful mentor for two years. During this time, mentors and protégés work together on various goals. The program concludes with a graduation ceremony and celebration of the protégé’s growth and success. In addition to the Business Empowerment Program, the City of San Antonio has a partnership with LiftFund to manage Launch SA, which is an accessible entrepreneurial resource center that helps those interested in becoming an entrepreneur identify existing business resource partners and access programming to spur the creation of their small
businesses and enhance their sustainability. Located within the Central Library, Launch SA also hosts various community business resources on site, such as the City’s Small Business Liaison who serves those in need of information regarding permitting, licensing, and regulatory issues.
Access to Capital S/M/WBEs that experience difficulty accessing capital through traditional lending mechanisms have the ability participate in the City’s Loan Interest Buydown Program, pending the availability of funding. In partnership with LiftFund, this City program offers qualified S/M/WBEs 0% interest loans to assist with various business needs such as starting or expanding a business, employment, or for the purchase of property, inventory, and equipment. Annually, this program has assisted 35 to 40 S/M/WBEs receive loans that collectively total between $700,000 and $800,000.
Contact the City of San Antonio to Learn More: Any business owner, either established or in the beginning stages of business can visit www.sanantonio.gov/smallbusiness or contact the Small Business Office at (210) 207-3922 for more information on the City’s various small business programs. We look forward to hearing from you!
Feature Publication Supplement to San Antonio Construction News – September 2018
EXAMPLES INCLUDE: Roads Bridges Fire & Police Stations Libraries
7
Opportunity to Succeed Interview with John Wright President & Chief Executive Officer Alterman, Inc.
A
s one of San Antonio’s oldest and largest electrical contractors, the company traces its roots back to 1923. In 1984, Alterman became employee-owned and has a history of helping other companies succeed by mentoring. CN: As a company, has Alterman always been involved in mentoring other people or companies?
JW: Yes. I’ve made suggestions to people on things I thought they could do with their companies to help improve their company’s growth. You know, those opportunities just come up and people ask your advice. I’m more than happy to share and help people improve. CN: To qualify to be a protégé in the Bexar County/AGC Mentor Program, I understand there are required steps that must be followed. JW: They have to go through certain steps and classes within the Bexar County first. Then they have to fill out a questionnaire. Mentors get together, along with Bexar County, and we review all these applications. Then we go through an interview process with the ones we think are ready to get into the mentor program. Through that process some make it and some don’t. Then we make the final decisions. CN: Once they get accepted, what can they expect? JW: They are typically small companies who are trying to run a business. I tell our protégés that it’s hard work. We also give them a lot of homework to do. The thing we want to do is identify their strengths and weaknesses because
CN: I guess seeing progress in these protégé companies is different with each one. JW: We meet with them and work with them. When you see the light bulb go off whenever you’re talking about certain things and you get feedback from them, to me that is the most rewarding piece. You know just helping these people when they put that much time and effort into wanting to be successful is good. Their commitment is what makes the process work. CN: When mentoring do you have a step-by-step game plan? JW: Yes and those things are all pieces of the puzzle they have to complete. We have to believe they have been successful with the goals set before they can graduate. CN: The manpower shortage is a big topic now. Is this discussed a lot with your protégés? JW: Most of the companies are smaller but it’s still an issue. What I really talk to them about is building their team. Depending on the size of the company it can be finding those two or three people you can depend on and trust to help you build your business. You can only do so much yourself because running the business is a fulltime job in itself. CN: These company owners are entrepreneurs so that has got to be a challenge in itself.
John Wright, President & Chief Executive Officer You try to get them to focus on the right things CN: Do they try to expand too quickly? JW: Some want to travel and go out of town which can be risky. We talk about risk associated with that and trying to get them to focus on the opportunities here where you can. It’s easier to watch and manage the risk. I try to get people to focus on what they are good at doing and what’s their most profitable piece of their business. That’s where you want to start to grow if that is what you want. CN: Do all of the companies you select finish and graduate in the two years? JW: No, some of them don’t make it through the two years or graduate. They either were not ready for this level of mentoring and learning or they weren’t committed. That becomes obvious fairly soon but I have been very fortunate to have companies that were very committed. CN: Where do you find they struggle the most? JW: We find where they struggle the most is not really understanding what the project or job costs are. They need to know if they were profitable or not but they don’t know how to manage their cost because they aren’t tracking the right things sometimes. So that’s another big piece of it as well. Just really getting them to under-
stand the financial side of things. CN: How does that make you feel when they succeed? JW: I enjoy sharing my experience and helping people be successful whether it’s within our own company or outside the company. Anytime there’s an opportunity to do that, I’m all in. It’s fantastic. CN: What advice would you give others who are considering being a mentor? JW: I’m passionate about it and if you are passionate about anything you should be doing it. If it is something that others are interested in doing, there are opportunities to get involved. It is work and you think about the things they’re doing and try to guide them in the right direction. For anyone wanting to get into mentoring, it’s serious business. Your protégé is relying on you and the team. CN: Final thoughts on being a mentor or the mentoring process. JW: You know, I think the process is great. I would recommend the program to any small company that’s gotten to a point where they have been successful but want to grow and continue to be successful. If you can get into this program as a protégé it’s a great opportunity for people to get a lot of coaching, advice and direction on how to improve and grow their company.
JW: Yes it is and most of the time our biggest job is just reining them in and getting them to focus on the right things, making them think instead of jumping too quickly and to have a strategic plan. Feature Publication Supplement to San Antonio Construction News – September 2018
Mentor - Protégé
JW: To some extent, yes. As a company we want to support our community and the people in the community. Personally I’ve been doing this for almost seven years with the Bexar County/AGC Mentor Program. The program is growing each year and this is my fourth company to mentor. We are getting more protégés so the number of mentors is increasing. As a matter of fact, this year is the largest number of mentor/protégé groups that we’ve had. CN: You have been with Alterman many years. During that time have you helped someone in an unofficial capacity because you thought you could help them?
those are the things we want them to focus on and help them prioritize. We are here to volunteer our time so for me, I want them to commit they are going to take the time and the effort to really work hard to improve their companies. When they do it we’ve seen them grow and improve their operations and, hopefully, they continue to be successful companies.
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Overcoming Obstacles
F
lores recommends and encourages others who want to start their own small, minority, women or veteran-owned companies to visit the city’s Small Business Economic Development Advocacy Program (SBEDA) office. They are very helpful with telling you about bid opportunities on projects that have diversification goals and if your company meets the minimum requirements. They are great about helping and telling you what projects are allocated and what the minimum requirements are. “They help you fill out forms and get your package together. When you get more certifications, it gives more validity to your company that someone has vetted you, especially in the construction industry. You want your company to be vetted based on it’s qualifications and capabilities.”
J
aime Flores has been in the construction industry doing interior finish-out work for over 30 years. He learned
the trade working by his father’s side. In May 1998, he and his father started CalTex Interiors, specializing in interior finish-out, metal framing, drywall, finishes, acoustical ceilings, tape, float and paint. Cal-Tex also does exterior metal framing. About 10 years ago, Yolanda Flores, vice president of Cal-Tex, applied for the company’s first certification. They are certified through the South Central Texas Regional Certification Agency (SCTRCA). “We have our small business (SBE) and our minority business (MBE)
through SCTRCA,” says Flores. “As a small, minority-owned business, we did not always have all the resources to compete with the bigger companies. In addition, it’s hard to retain our qualified tradesmen because a lot of employees who are qualified,want to work for the bigger companies.” Going through the process to obtain company certifications was not a difficult process for Flores and Cal-Tex Interiors. “I utilized all the resources available to me. I went down to the SCTRCA office, made an appointment with someone who guided me through the process. They told me what I needed and what I should expect. For me, doing it that way was not a hard process at all. They were there to help and guide, and they did.” But still, the company sought additional avenues to help their company grow. As a result of their acquired certifications, Cal-Tex was paired up with Zachry Construction through the City of San Antonio’s Mentor Protégé Program for the construction of the Henry B. Gonzalez downtown project. The twoyear mentorship with Zachry proved to be a great experience for Cal-Tex. “It was most beneficial to our company not only because of the relationship we built with Zachry, but because of the knowledge we attained. I’m not sure what the mentor protégé programs are like, but going through the City’s program was a
wealth of knowledge. Every month the City of San Antonio facilitates a monthly meeting between the mentor and the protégé, which is basically a training session on a different topic to help you grow your business.” One of the biggest benefits from receiving their SBE and MBE certification has been is they are now in the City’s database. When a general contractor needs to meet specified criteria for a project, they are notified. “We get alerted on a lot of projects going out for bid – projects in which general contractors utilize ex-number of SBE, MBE, WBE or VBE contractors to secure the contract.” Going to the boot camp was very, very helpful. Boot Camp is several classes over a couple of months. Each class is a different topic such as preparing proposals, bonding, financials, human resources, reviewing contracts - basically things that are pertinent to any kind of business. This knowledge is necessary in order to want you want to display out there for people to know about your business. You want to come across as a business owner.
WVB-owned enterprises is encouraged. That does not mean set-asides or other guarantees of commerce headed your way. Indeed, there are many privately owned businesses that do not qualify for certification that might see these things as a disadvantage It is important to remember that, especially with regard to construction, certification as minority, woman, or veteran-owned does not necessarily equate to small, as defined by the SBA. It also does not imply ownership of a business by a minority, veteran, or woman. What it means is recognition and expanded opportunities based on your certification to benefit the economic health of our communities.
What did I just say? Well, to put it another way, the encouragement of opportunities for these certified businesses provides for an increased level of competition which then results in improvement in the performance of the market to the benefit of the consumers. More players means a better game. A lot or of SMWVB outreach from the larger consumers in our community involves very basic business topics like how to write a business plan or maybe an advanced class on Quickbooks. In the future, I am hoping to work with Construction News on exploring what opportunities are currently out there that fit into this category, to identify possible outreach efforts that would be of benefit, and how to get the word out regarding the benefits to the consumer of engagement with these businesses. Some of the frustrations that have been shared with me include the bundling of small tasks and projects into large contracts which effectively shuts out small to medium sized companies. Compartmentalization of large projects rarely happens because there is little perceived economic benefit to the consumer. However, in my experience, it can and does happen, though admittedly not often. However, and this is a big however, when it does happen, it may be a case of being in the right place at the right time, and more often than not, it is the certification that may make the difference in your successful selection for participation in a project. Back to the original topic of dis-
cussion – what do you do now? Those certifications while beneficial won’t guarantee you anything. It falls on you as the business owner to get out there and make yourself known - expand your presence in the industry. In a world where social media is so prevalent, nothing comes close to taking the place of first hand recognition. That means you go to the events and participate in the mixers, the skeet shoots, the golf tournaments and everything else in between. You join an industry association or maybe even more than one. And then you get involved by serving on a committee or even as a member of a board of directors. If you are smart, you’ll even attend events or fundraisers for associations of which you aren’t a member. And when you’ve met the right people and been introduced as an active member of the community others can help you achieve your mandated SMWVBE goals. Edward Pape owns and operates The Vaquero Group LLC, which performs commercial construction and consulting services. He has a BBA from UTSA with a concentration in Building and Development and an MA from St. Mary’s University in International Relations and Economics. Edward has performed on many large and recognizable projects in San Antonio including the Hurricane Katrina Relief Effort and the Mirasol Homes Program for SAHA, and for the State of Texas when he acted as Construction Program Manager for Hurricanes Ike and Dolly Recovery Program. He is currently serving as the Vice President of the Hispanic Contractor’s Association.
Yolanda Flores, Vice President Cal-Tex Interiors
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ongratulations. You are in business. Perhaps nothing is more satisfying than taking that plunge and putting your name on that line. By now, you have probably incorporated in one form or another. You’ve opened your bank accounts, registered with the State, maybe landed a few contracts and hired some people. If you are like many would-be entrepreneurs, you might have inked that first deal and then went on and filled in all the gaps. Hopefully, if you qualify, you may have even taken the time to recognize the importance of certifying the ownership of your company to reflect your status as a small, minority, woman, veteran, or otherwise recognized business, and here in San Antonio, that probably means certification by the SCTRCA. A lot of hard work, a certain amount of stress, and a level of preliminary capital investment, but it was all worth it because now the sun is up, the lights are on, and you are in business. Congratulations as I said before. Now what do you do?
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lot has been written and discussed about the benefits of certification for qualified businesses, but understanding what those advantages really mean and how to best utilize them, is the important part of this equation. Participation in SM-
Feature Publication Supplement to San Antonio Construction News – September 2018
Cal-Tex is DBE, 8(a), HubZone, HUB, ESBE, HABE, MBE & SBE Certified. They are members of the Hispanic Contractors Association (HCA) and the Associated Builders and Contractors (ABC)
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never planned on being in construction. It was simply taking advantage of what life had to offer and deciding to take that path. The thing I love most about the construction industry is the challenge that it presents and the sense of accomplishment when a project is complete and the customer is satisfied with the outcome.
Obtaining Government Contracts Betty and Charles wanted to focus a portion of their business on government contracts. Prior to getting on the list of qualified contractors, you have to perform a “capabilities briefing” — You address an audience of contracting officers and civil engineers on your experience and why they should use you. One of the requirements is experience in government contract jobs. Well, that’s a “catch-22.” “Figuring out a way to get experience to get the work can be hard,” Betty says. “You have to find someone willing to work with you, a larger company to get the contracts. Then you joint venture the project as a subcontractor to get the experience. “Finally, a contracting officer approached me. He found me on the list of companies registered to perform government jobs. Our first job was an airfield that needed repair at Ft. Hood. We performed the job and finished ahead of schedule.” Six months later came another job, an airfield in Corpus Christi. More and more job opportunities came, and the rest is history. -rd
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Obtaining Certifications Each certification has a different criteria. Obtaining numerous certifications takes a lot of time and per-
Veteran Betty Drennan, Co-Owner, ACE CO. severance. It’s a learning process and a lot of paperwork. In the end, it is worthwhile to obtain multiple certifications as it opens the door to a multitude of businesses who require specific certifications and who might need your services.
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amily atmospheres definitely have influences on one’s life, shaping individuals and directing career paths. For Priscilla Contreras, nothing could be closer to the truth.
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ontreras grew up in a construction home. Her father owned his own company and she saw first hand the pride he felt knowing he was part of creating something great and she felt it too. “I developed a passion for entrepreneurship at a young age. I attribute my fearless tenacity to my father and my passion from my mother.” It was these traits that steered her into construction. After working for a company that was certified by the SBA as an 8(a) Alaskan Native Corporation (ANC) and receiving millions of dollars in sole-source Government contracts, Contreras was motivated to do the same. In the fall of 2012, Contreras, at the age of 26, became the proud owner of The CCGroup LLC, a minority woman-owned small business subcontractor specializing in metal framing, gypsum assemblies, acoustical solutions, and paint. “I grew up seeing many things built from the ground up. As a child, it was inspiring to see people working together tirelessly to build something that would benefit our city. I enjoy it more now
Priscilla Contreras, Owner/President and Jonathan Contreras The CC Group
knowing my company’s name is behind it. Seeing everyone with their own skill set pushing to complete a project still fascinates me. Understanding there wasn’t many women in this industry challenged and intrigued me to get into construction. Recognizing that if I could acquire specific certifications, I too could benefit from the same advantages as my previous employer. Those certifications are what motivated me to open my company.” The CC Group LLC is certified with the South Central Texas Regional Certification Agency (SCTRCA) and the State of Texas holding several certifications – WBE, HABE, MBE, SBE, ESBE as well as the Historically Underutilized Business
Advice Reach out to UTSA and utilize their free training and networking outreach events. (1) UTSA SBA Minority Development Enterprise Center (2) UTSA Procurement Technical Assistance Center. They will help you through the certification process, guide and coach you in setting up your business. Certifications ACE CO has the following certifications: SCTRCA Certified State HUB, SBA 8(a) DIBE, ESBE, HABE, MBE, SBE, VBE, WBE
(HUB) certification. “Each one of my certifications have been a huge contributing factor to the success of my business. Local, State and Federal agencies seek to purchase goods and services with certified businesses in the area and, fortunately, these programs have increased my opportunities to contract with many local GCs.” Shortly after acquiring her certifications, Contreras contacted the Business Empowerment Program through the City of San Antonio. The program was created to support small, minority and woman-owned business by providing access to people and organizations that are ready to help. In 2014, Turner Construction interviewed Contreras and agreed to provide the guidance and tools necessary to improve and support The CCGroup’s small business needs. Participating in a two-year Mentor Protégé Program was extremely beneficial to growth of The CCGroup LLC. Throughout this two-year partnership, The CCGroup LLC further increased the knowledge, skills and capabilities necessary to build the capacity to successfully contribute to the strength and vigor of South Texas. “By taking advantage of this program, we were able to enhance our capabilities by receiving guidance on business planning and projections, business development, safety, cost estimating, marketing, human resources, and much more. They have individuals with 20–plus years of experience, so I took advantage. I strategically selected specific departments. I set up times to
sit with each manager of those departments, asked many questions and explained to them my company’s growing pains. Everyone was so helpful and willingly provided solutions and concepts they were utilizing to lighten their workload. That was so beneficial to me.” With the efforts of the Mentor Protégé Program along with the acquired certifications, The CCGroup LLC got further opportunities. “There weren’t many women, minority-owned businesses, but I knew there were a lot of local and state projects that required those actual certifications. By utilizing these certifications, I was able to procure small projects in the beginning. Then eventually, the GCs saw our capabilities and started inviting us to bid larger projects. Later, by attending industry events at different associations, I began establishing more relationships. Today, we can now be selective and work with many of the local highly respected GCs in San Antonio.” For Contreras, the biggest challenge that she faced as a woman-owned business owner was proving that women could be a part of the construction industry. “Many, even within my close circle, told me I was crazy; and I get it. Certain cultures, as well as backgrounds find it hard to accept women in the construction industry, yet that fueled me. Now, with my husband recently joining the team and our large industrious workforce, I can say I’m not only crazy but crazy about this industry.”
Feature Publication Supplement to San Antonio Construction News – September 2018
Overcoming Obstacles
etty Drennan grew up in San Antonio. She later joined the Air Force and was assigned to the Mission Support Group, Services Squadron. This is where she met her husband, Charles. Throughout her life she always enjoyed building and mechanical projects. After leaving the Air Force, due to a medical discharge, she recognized the opportunities the construction industry offered for financial independence. She decided to use her skills and apply them to her interests. In 1995, Betty and Charles established ACE CO. in San Antonio. They specialize in asphalt paving, parking lot striping, grounds maintenance and concrete. The business was built from scratch - not a lot of funds - so it was built over time. Establishing the experience was necessary in order to obtain the certifications. “When you’re a woman, you have to prove you are knowledgeable in the business and really working in that business,” said Betty.
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he downtown skyline San Antonian’s have become accustomed to is about to undergo a dramatic facelift. With its 23-story soaring presence, the new Frost Tower will become the iconic symbol of San Antonio’s future economic growth and prosperity. In February 2017, Clark Construction Group – Texas LP (Clark) broke ground on this 460,000sf vertical gem. In June, the Clark team celebrated “topping-out” and today the project nears completion ahead of schedule and under budget. Clark is a 112-year-old privately held general contracting company with $5B in annual revenue. They have been continuously active in the Texas construction market for over thirty years. Locally, Clark has built some of San Antonio’s most complex projects including; Brooke Army Medical Center (BAMC), the first Convention Center Expansion, the San Antonio Military Medical Center (SAMMC), and the San Antonio Airport Terminal B Expansion. Heading up the San Antonio region for Clark is native-son John Warren. A 1996 graduate of Texas A&M and former Marine officer, Warren has returned to his hometown to lead Clark Construction in San Antonio and throughout Texas. Warren has been with Clark for the past 14 years and has a long-term vision for Clark in his hometown. Additionally, Pete Forster, Clark former Chairman and CEO until 2013 was raised in Harlingen, TX and is also an Aggie class of 1963. Not something often said, but Warren speaks with great pride about knowing former Chairman Forster who instilled the values we appreciate as Texans into the national corporate culture at Clark. Warren has put together an elite team of some of Clark’s most experienced employees from across the country. All have extensive experience working on large complex projects. And all are Texans who are excited to be back home and part of this prestigious project. “This is the best team I’ve ever worked with”, says Warren. “They’re all very talented, but more importantly they recognize the value each subcontractor brings to the team – and they treat each member with the highest level of respect. We have developed a better model on how to get it done while enjoying the work experience.” Interestingly, internationally renowned architectural firm, Pelli Clarke Pelli, designed the Frost Tower. One of Pelli’s key principals, William “Bill” Butler, is also a native San Antonian and led the design effort. Notably, Fred Clarke also a principal is from El Campo, TX. From the very beginning, outreach to the local construction community was a high priority. Clark wanted the tower to be built by locals. “There is a certain amount of pride and ownership that we wanted to achieve – which can best come from the
Feature Publication Supplement to San Antonio Construction News – September 2018
11 hands of local tradesmen and locally owned companies. It was not about who was the cheapest – it was about who could provide the greatest value. That being said, we have more than 90 percent local participation on Frost Tower project. Although not mandated, Clark achieved over 25 percent small and minority-owned business participation. “We are very proud to have achieved this percentage.” At Clark diversity is not a requirement – it is part of core corporate philosophy and culture. In addition to their excellent subcontractors, Warren attributes the successful progression of the project to a great owner, partners Weston Urban and KDC - led by President Randy Smith and Vice President Chad Jackson. Additionally, the tremendous support from the City of San Antonio and CPS Energy, who equally shared the same pride for this building, were incredible partners that have been critical in overall project success. As a result, construction of the Frost Tower is ahead of schedule with a completion date in early 2019. Early turnover of space for tenant finish-out is expected to be two months ahead of the projected date. The Clark team is determined to make Frost Tower a successful project, not just for Weston Urban, KDC and Frost, but for our subcontractors and for the city as a whole. Frost Tower is not the end for this Clark team. They are currently working with a local developer on another iconic high rise that will again change the San Antonio skyline. “It took me 20 years to get back to my hometown. I’m here to stay and I look forward to seeing Clark continue to shape our future skyline. We nailed the formula, great owner, City support and quality local subcontractors. Thank you San Antonio!”
Feature Publication Supplement to San Antonio Construction News – September 2018
Contracting Tips
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Building Compliance in the Construction Industry
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Bryan Jarrett
mployers in the construction industry deserve to build their businesses on a level playing field, and employees deserve to receive the wages they’ve earned. The U.S. Department of Labor’s Wage and Hour Division (WHD) strives to achieve both outcomes through educating employers and fully and fairly enforcing the law. WHD has long recognized that the majority of employers want to comply with the law. That’s why we provide employers in the construction
industry with compliance assistance information, tools, and other resources. For example, earlier this year, we launched the Payroll Audit Independent Determination (PAID) program, which helps employers identify and correct noncompliant practices so employees can receive 100 percent of their back wages — faster. Our goal is to answer employers’ questions and proactively help them avoid violations. We commonly answer questions such as: • When do I have to pay overtime? • Who is exempt? • Can I pay employees on a piece-rate basis? WHD constantly seeks opportunities to reach the regulated community and expand our compliance assistance efforts. In 2017 alone, we conducted more than 1,300 educational outreach seminars, conferences, speeches, symposiums, panel discussions, and presentations geared toward companies. Each year, we also host multiple seminars teaching employers about the legal requirements for wages in government-funded construction contracts. Rigorous enforcement is also key to boosting compliance with federal labor laws. U.S. Secretary of Labor Alexander Acosta, a former prosecutor,
Vision Statement “Increasing economic prosperity by creating opportunities and eliminating barriers” South Central Texas Regional Certification Agency 3201 Cherry Ridge St., Building C, Suite #319 San Antonio, TX 78230
www.sctrca.org Feature Publication Supplement to San Antonio Construction News – September 2018
tors found that Kyco Services LLC paid is clear in his message to employers— employees a piece rate, without regard we are committed to full and fair ento the number of hours they actually forcement of the law. worked, and without paying overtime Our investigators complete thouwhen they worked more than 40 hours sands of investigations per year, not in a week. Company records, however, only responding to complaints but falsely showed that employees received also proactively identifying industries hourly rates near the minimum wage, where data and evidence indicate overtime, and additional bonuses each there are violations. pay period. The employer generated When our investigators find vithese records to create the appearance olations, we rigorously pursue corthat it paid overtime when it rective action. was really calculating rates We use the “Simply because a retroactively to arrive at enforcement pay practce may amounts that matched the tools available piece rates. to both remedy appear common in a It is critical for emthe violations particular industry ployers to understand their and to deter and responsibilifuture violadoes not mean that it obligations ties under the law. Violations tions—including litigation, complies with the law.” harm both employees and law-abiding businesses. Simthe assessment ply because a pay practice of civil monetary penalties, and the may appear common in a particular assessment of liquidated damages. industry does not mean that it complies In 2017, our investigations sewith the law. cured more than $270 million in back Employers can call WHD’s toll-free wages for more than 240,000 workhelpline at 1-866-4US-WAGE (1-866ers. In the construction industry alone, 487-9243) to ask questions, anonyWHD secured nearly $50 million mously, and learn more about their in back wages for more than 26,000 obligations under the FLSA. Informaworkers. tion about our PAID program can be In a recent WHD investigation, viewed at www.dol.gov/WHD/PAID. for example, a Utah employer was orAdditional compliance information is dered to pay $650,000 in back wages, also available at www.dol.gov/WHD/. damages, and penalties for willfully Bryan Jarrett is the Acting Adminisviolating the overtime and recordtrator of the U.S. Department of Labor’s keeping requirements of the Fair LaWage and Hour Division. bor Standards Act (FLSA). Investiga-
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Four Common Construction Law Misconceptions
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hroughout two decades of law practice, I have heard a number of recurring legal misconceptions from clients. Four of the more common construction law misconceptions include the following: West W. Winter, Attorney The Winter Law Firm, PLLC San Antonio, TX reason for non-payment, a pre-lien notice serves many valuable purposes. Chief among these is trapping funds in the hands of the project’s owner. This is critical because an owner’s liability to a lien claimant is limited on commercial projects to the statutory retainage and any funds which the owner should have retained upon receipt of a proper prelien notice. Furthermore, general contractors and owners are typically sophisticated parties who understand the
I filed my lien, I just have to wait to get paid While it is essential to timely and properly perfect your mechanic’s and materialman’s lien or payment bond claim, there are also strict statutory deadlines within which you must actually file suit to foreclose or enforce your lien or bond claim. Failing to file suit within these prescribed deadlines will likely result in the loss or extinguishment of your lien or payment bond rights. Suit must be brought to foreclose a lien within the limitations periods mandated by Section 53.158 of the Texas Property Code (typically one or two years, depending on the type of project) or the lien will be extinguished. A suit on a payment bond on a state public project may not be brought by a payment bond beneficiary after the first anniversary of the date notice for a claim is mailed under Chapter 2253 of the Texas Government Code. I missed the lien deadlines, I have no rights Even if you miss statutory lien deadlines, there are many avenues of potential recovery for nonpayment. In a sham situation described by Section 53.026 of the Texas Property Code, you may still have lien rights, and if you contract directly with the project’s owner, you may have constitutional lien rights which ex-
ist independently of any notice or recording requirements. In the absence of lien rights, you likely have available causes of action for nonpayment which, depending on the specific circumstances involved, may include breach of contract, quantum meruit, suit on sworn account, Prompt Pay Act claims pursuant to Chapter 28 of the Texas Property Code, and Texas construction trust fund claims as codified in Chapter 162 of the Texas Property Code. Many of these claims also provide for the recovery of attorney’s fees and expenses. I have Insurance, so I am covered CGL insurance policies are loaded with exclusions and exceptions which often come into play in construction cases. In construction defect cases, policy exclusions such as the “your work” exclusion will often operate to deny you the very defense and/or coverage which you thought you were getting. These exclusions have frequently been the basis for denial of defense and coverage by insurance carriers and as a result, the subject of much litigation in recent years. Work with your attorneys and insurance agents to understand your coverages and the impact of applicable exclusions. If you are denied a defense and/or coverage, don’t give up as there may be viable arguments which can be asserted on your behalf in this evolving area of the law to obtain a defense and/or coverage.
Feature Publication Supplement to San Antonio Construction News – September 2018
Legal Agrements
Sending a lien notice will harm the working relationship When payment has not been received, subcontractors are sometimes reluctant to send proper pre-lien notices because of a perception that doing so will irreparably damage their relationship with the upstream parties. It is only natural to fear upsetting the apple cart. However, as the mechanic’s and materialman’s lien is one of the most powerful weapons for ensuring payment, failing to properly and timely send statutorily required lien notices will have adverse consequences. Whatever the
importance of securing one’s right to payment.
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Make Your Presence Known “Having these certifications has been extremely beneficial, but even if you have them, it does not mean you are going to get the work.”
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vette Robinson started Robinson General Contractors (RGC) with husband, Kurt, in 2010. A small general contractor, RGC does everything from maintenance to remodels to ground up construction. Wanting their business to be successful, she went to the Small Business Development Center (SBDC) where they gave her all the tools they needed to start their company and learned how to get their new business incorporated. Through the process, she hired an attorney to help develop shareholder agreements, bylaws and everything that goes with starting a company. RGC is a complete SWMBE, holding small, minority, woman-owned; state of Texas HUB, DBE, SBA 8a, WOSB and economically disadvantaged WOSB certifications. “Having these certifications has been extremely beneficial, but even if you have them, it does not mean you are going to get the work. It was a stepping stone to getting our foot in the door and being able to bid on some of these projects that needed woman-owned, minority-owned or HUB participation. Many public projects are on a point system. Our great work made all these repeat customers, says Yvette. “They (SWMBE certifications) have gotten our foot in the door in several places that we might not have been had we not had these certifications,” adds Kurt. According to the Robinsons, “Asking which certification is the most beneficial is like asking which child is your favorite. Each certification has its own special quality. It just depends on what you are going after.” When the company first started, it was just Yvette and Kurt. But as the
company grew their business, they hired temporary labor until they were able to hire full-time personnel. Today the company has 12 full-time employees and is in the process of purchasing a building that will allow them to grow more. “We are big enough to get any job done, but small enough to give it the personal attention it needs which is a rarity in this industry. That’s what we try to project to everyone and strive to give that to every single one of our customers,” adds Kurt. Both Yvette and Kurt agree you have to get out there and make your presence known. If you want to start your own company, “Stay positive and stay true to yourself and everything is going to fall into place. Don’t give up. Once you get that first job, everything starts falling into place. It’s up to you to keep it going. And remember, just because you get a certification, doesn’t mean you got that job. Once you get on that bidders’ list, that’s your moment to shine and say, ‘I can do this at this price and this is why.’ Your work speaks a lot for itself,” says Yvette. “Get out there and meet people,” adds Kurt. “Join as many organizations as possible. The Hispanic Contractors Association (HCAdeSA) and the San Antonio Hispanic Chamber of Commerce have been great avenues for us. You never know, that next contact could be the contract that breaks you into the big time!”
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Compass Rose Academy project completed July 31, 2017 Feature Publication Supplement to San Antonio Construction News – September 2018
Yvette and Kurt Robinson
15 “The mission of SCTRCA is to improve opportunities for our vendors through education and connect them with our Member Entities, Corporate Sponsors and Resource Partners, says Charles Johnson, Executive Director. With the benefits of certifications, good things can happen. SCTRCA is a bridge to opportunity.”
Charles Johnson Executive Director
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• The City of San Antonio • Bexar County • Alamo Colleges District
• Brooks • Edwards Aquifer Authority • Port San Antonio • San Antonio Housing Authority • San Antonio I.S.D. • San Antonio River Authority • San Antonio Water Systems • University Health Systems • VIA Metropolitan • San Antonio International Airport
The SCTRCA offers a SMWVBE (local) program under which vendors who meet eligibility requirements are certified as Small Business Enterprise (SBE), Minority Business Enterprise (MBE),
SCTRCA maintains a database of over 2800 active certified vendors. The certification applications for both programs as well as additional information can be found on our website – www.sctrca. org. The mission of SCTRCA is to improve opportunities for our vendors through education and connecting them with our Member Entities, Corporate Sponsors and Resource Partners.
Feature Publication Supplement to San Antonio Construction News – September 2018
Specialty Certifications
he South Central Texas Regional Certification Agency (SCTRCA) is a 501c(3) non-profit corporation that represents public entities in the South Texas area. SCTRCA along with their Member Entities, Corporate Sponsors and Resource Partners share a
common goal of helping small business owners succeed. The entities we represent are committed to enhancing the participation of Disadvantaged, Small, Minority, Woman and Veteran-Owned Businesses in contracting and purchasing activities. At the SCTRCA, we seek to connect the small business owner to economic opportunities through the power of certification. The SCTRCA is responsible for the certification process for our member entities, which include:
Woman Business Enterprise (WBE) and/ or Veteran Business Enterprise (VBE). A vendor can be certified with multiple certifications as long as the eligibility requirements for each certification are met. The SCTRCA also offers a federal program that consists of the Disadvantaged Business Enterprise (DBE) and Airport Concessionaire Disadvantaged Business Enterprise (ACDBE) certifications. The ACDBE and DBE are reviewed and processed according to the Texas Unified Certification Program (TUCP). The TUCP follows Federal regulations, 49 CFR, Part 26 and Part 23.
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SMWVO Owners
GD Interior Construction – HABE, SBE, MBE, VBE L-R: Matriarch-Manuela Perez, Patriarch-Jose H. Perez, Grandson Oscar J. Garcia, Daughter/Owner-Estela Garcia-Perez, Daughter/Owner-Adela P. Gonzales, Son/Owner Esteban Perez
Pro Landscape Solutions LLC ESBE, SBE, VBE, WBE L-R: Fernando and Alaina Keller, Owners
A-Ram Plumbing Trish and Albert Ramirez, Owners
GARREN Construction – DBE, ESBE, HABE, MBE, SBE, WBE, HUB and FEDERAL8(a) Elizabeth Yetman Chavez, Owner
Maximum Demolition, MBE Lee Ramos, Co-Owner
A & B Automatic Doors of Texas WBE, HUB, Bryce and Amy Ronek, Owners
Feature Publication Supplement to San Antonio Construction News – September 2018
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Surety 201: Going Beyond the Lunch and Learn Discussions
Drew Addison, Risk Advisor
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Understanding the Associated Risks When a contractor makes a decision that will impact their company and the type of work they will be bidding, it is pertinent to understand the associated risks. The requirements to qualify for surety bonding can be daunting, but they are in place for a multitude of reasons. The main reason is to assure the contractor performing the work not only has the experience and processes in place to perform the work successfully, but also the financial ability to support a “worst case scenario” default on the project. Surety Bonds are NOT insurance, meaning they do not protect you as the contractor if a project default occurs. They are designed to protect the project owner in the event the “worst case scenario” happens. At the start of every bonding program placement, the surety company will require all principals of the Contracting Company to sign a General Indemnity Agreement, which is a document outlining the surety/client relationship. The major risk the contractor must understand is that this document lays out the compensation requirements for damages or loss in regards to surety default, and that this is a contractual agreement that the contractor agrees to pay for any potential losses or damages that may arise. One way to think about it is this: Texas has homestead exemption, meaning your home is safe from default along with your retirement savings. However, anything else that can be liquidated is on the table to pay back to the surety in case of a loss. Certain factors of your financial health and company presentation are
Know Your Economic Influences Just like any business, surety bonding experiences ups and downs in the economic marketplace, which is usually described as tightening and loosening in the underwriting of programs. This concept is another important aspect of establishing a surety line: know your business and know your market. Each surety has unique “appetites” for the kind of work scopes they prefer and size of companies they find more appealing to work with. As the economy shifts, so do the appetites of underwriters. If you’ve tried to get bonding in the past and were met with difficulty, then there might have been outside economic influences that could have made it more difficult at the time.
Your Surety Agent is Your Ally One of the main duties of your surety agent is to understand what surety company is the best fit to help fulfill your immediate needs and establish the relationships essential to growing your program. Because there are many contractors eager to get into the bonded side of work, programs such as the Small Business Administration (SBA) Surety Bond Guarantee support businesses that are owned and controlled by socially or economically disadvantaged individuals, veterans, or service disabled veterans. There is additional support for certified HUBZone and 8(a) companies. Most surety companies also offer “Quick Application” options that are based on experience and personal credit scores of the owner(s) to assist in starting a surety relationship. Programs such as these can be very beneficial, however, they are capacity-limiting and more costly than a standard program. All of these options are available through IBTX, and you can be assured that our consultative approach is designed to present you with the most appropriate path to early success. What Are the Next Steps? It is important to find a surety agent that is not only knowledgeable, but has the drive, desire, and ability to keep your goals a priority. The first steps you can do on your own are to begin gathering the required information that will be requested from the start. This includes: • The last three (3) year-end corporate financial statements (preferably prepared by a CPA as a CPA prepared statement will be a requirement moving forward. Typically a Review is the min-
imum required). • Owner or Owners’ latest personal financial statements • Owners’ and key employee resumes • Letter from bank concerning experience and line of credit, if any. • Current work in progress schedule • If the latest year-end financial statement is more than six months old, then provide a current in-house balance sheet and P&L • Brochures, reference letters or other items that you think would be helpful in our evaluating your company for bond purposes. • Valid Certificate of Insurance Compiling this information and beginning the analytical process with your agent well in advance of a bonding need, is also very important. Waiting until you are notified that you will need to supply a payment and performance bond or bid bond to begin “looking”, will only increase the probability of failure to secure a bond in time. Establishing a Surety Program can be quite a daunting process, but if it is managed correctly with the right support and approach, it will be the best decision you make to take your business to the next level. Founded in 1946, IBTX is one of the largest independent insurance and surety brokerage firms across the Southwest. Over the decades, our firm has been on the forefront in adapting to market trends by developing and incorporating tools designed to facilitate the overall success of our clients. Let us know how we can serve you.
Feature Publication Supplement to San Antonio Construction News – September 2018
Insurance
t this point, you may have attended at least one “Surety Bonding 101” seminar or read articles about surety bonds and the qualifications required for a program. Much of the information shared tends to be broad explanations about what, and who, is covered when bonds are required. What is typically not discussed are the factors of business financials that are analyzed by the surety companies, as well as the risks associated when approaching bonded work.
used to underwrite a reasonable bonding capacity (single project and overall aggregate limits) so there will be a means to settle in the event of a default. At IBTX, we have developed a pre-underwriting program that allows us to analyze and grade your company’s financial health that mirrors many surety underwriting platforms. These tools allow us to get a preliminary understanding of what to expect from the underwriters prior to submitting any business and personal information, as well as to begin our consultative relationship that will continue throughout our time working for you. Our approach includes continually monitoring the status of your current needs and abilities, and assisting in helping you grow into the company you want to be. The analytical applications we use allow us to help visualize your company’s immediate abilities from a high level so that we can work together to position you for greater opportunities that fall in line with your goals.
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Pros and Cons of Tax Reform: A Unique Guide for Contractors Dustin R. Michalak, CPA, CVA, Managing Shareholder Ridout, Barrett & Co., P.C.
What type of entity structure should I select for my small business in the new tax environment? Should I change how my company is taxed? What other tax reform changes will financially benefit or harm my business?
Accounting
B
y now, most everyone has heard the pros and cons debated repeatedly regarding the Tax Cuts and Jobs Act which was passed late last year. The act was intended to spur economic growth and job creation through reduction of the tax burden. However, there are still questions for small businesses, especially contractors, to consider. Are you still wondering how the decrease in tax rates will impact you in your business? The decrease in tax rates for both
businesses and individuals is the most significant and most publicized change of the tax reform act. The focus for this article will stay within the business changes. For C-Corporations in tax years beginning after December 31, 2017, a flat tax rate of 21% will be applied to taxable income. This is a significant change from the 2017 highest earning rate of 35%. Though this makes C-Corporation an attractive entity tax selection, there is still the burden of double taxation upon dividends to the
corporation’s shareholders. The typical dividend rate will range from 15% to 23.8% depending on the shareholder’s individual earnings. Here is a simplified example:
A C-Corporation with taxable in come of $1,000 would pay $210 in taxes. If the corporation pays a dividend to a high-income sharholder of the remaining $790, the shareholder will pay an additional $188 in taxes. Effectively paying $398 ($210 + $188) in taxes at a rate of $39.8%.
For pass-through entities, things get a bit more complicated. What type of businesses qualify as pass-through entities? These are Partnerships, S Corporations, LLCs taxed as partnerships, and sole proprietorships. Under the new law, beginning in 2018, pass-through entities may qualify for a deduction up to 20% of qualified domestic business income subject to certain limitations based on taxable income. The limitations are phased in for taxpayers with taxable income of $315,000 for married filing jointly (“MFJ”) and $157,500 for all other filers. Qualified business income (“QBI”) is defined in section 199A(c) as ordinary income less ordinary deductions from a qualified trade or business. Qualified business income does not include capital gains and losses, dividend, or interest income. Any potential deduction is taken at the taxpayer level. Here is a simplified example for a taxpayer who is under the phase out:
Feature Publication Supplement to San Antonio Construction News – September 2018
A high-income taxpayer with $1,000 of qualifying business income would get a deduction of $200. The remaining $800 of income would be taxed at 37% (highest individual rate). The taxpayer would owe $296. $296. Thus, the taxpayer would have an effective rate of 29.6%
The calculation of the pass-through
deduction for taxpayers above the taxable income threshold is more complicated. The W-2 limitations are phased in over the next $100,000 of taxable income if MFJ and $50,000 for all other tax filers. Once taxable income reaches $415,000 for MFJ and $207,500 for all other taxpayers, the W-2 limitations apply in full. The deduction is limited to the greater of the following: (a) 50% of the W-2 wages paid by the business, or (b) 25% of the W-2 wages paid by the business, plus 2.5% of the unadjusted basis of all tangible depreciable property of the business. What type of entity should my business be and how should the earnings be taxed? Unfortunately, for contractors, there is not a clear cut answer on this one. It will all depend on the business as well as the owner’s investment objectives, bonding requirements and other considerations. This question will need to be answered on a case by case basis. Another win in tax reform for contractors is depreciation and more specifically, Section 179 expense and Bonus Depreciation. The depreciation changes in the new law can add huge tax savings, especially for contractors with extensive equipment and capital expenditure requirements. For tax years beginning after December 31, 2017, taxpayers may expense up to $1 million under Section 179, and the phase out threshold amount is increased to $2.5 million. These amounts will be indexed for inflation in tax years beginning after 2018. In regards to bonus depreciation, for qualified property placed in service between September 27, 2017, and January 1, 2023, taxpayers are allowed a 100% bonus depreciation deduction on both new and used property. While many changes with the recent tax reform are beneficial to small businesses, there are a few deductions that were not renewed or were modified which will have negative tax consequences for contactors. The new tax law disallows all deductions for entertainment, amusement or recreation, with the exception of a 50% deduction of food and beverage expenses associated with operating a trade or business. This also encompasses employer expenses associated with providing food and beverages to employees through eating at a facility meeting. Another significant change for contractors is the repeal of the domestic production activity deductions. Tax reform includes other changes that effect contractors such as, accounting for long-term contracts, reporting under the cash method, and deductibility of interest expenses among others. If you are a contractor, we highly recommend you work with a CPA well-versed in the construction industry. A professional with knowledge of construction and the inner workings of the industry will be able to appropriately guide you through significant decisions impacting you and your contracting business for years to come.
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The Opportunity is There
Mark Jones, Regional Vice President Structure Tone Southwest Establishing a relationship with a general contractor, especially for a young company, must be done properly. We asked Mr. Jones to give his thoughts and important issues. high work ethic. If you give us a person who has a work ethic, we can train them to do anything. Without “want to” there is not a lot we can do with them. That is going to be their biggest challenge. Financials a key - In the eyes of a lot of subcontractors they are not under financed because they can make payroll for two or three months. That is just not enough. You have to be able to bankroll your company for about a year in order to enter into the market. The way the construction industry is set up is subcontractors financing the projects. That’s just the way the system is. Key personnel - Many times we will sit down during the original or subsequent meeting with a sub and ask for their organizational chart. This is a big town but we all know each other– so when we see names we recognize as good guys that can open doors for a company. We all want to work with people that we know and trust and it goes on down to the foreman level. Emphasis on Safety - I love talking about safety because it really tells the story of our industry. We have evolved
at a very rapid pace over the last 10 years. It wasn’t that long ago when safety was an afterthought. We looked at it like this is something that would kill my production. Now what we have found is our building gets built faster, our production goes up and our profits go up. So getting the new or minority sub to understand that is a paradigm shift. It’s going to make them money and they need to look at safety as an asset. Advice for startups - The first thing I ask when I am approached by someone who wants to start a construction company is what trade they want to be involved in and why. Secondly, my question is, “Do you have a secure labor force.?” I am not worried about subs going out of business because they don’t have enough work.Too much work is what puts them out of business. Fire in the belly – To start a new business you must have that fire where your can’t live without it, where you are willing to put in 18 hours a day, seven days a week for the first three or four years to make it happen. No one is going to make it happen but you.
Network. I believe your network is equal to your net worth. Before they start a company they need to understand that they need to know people. No one is going to give them anything, so those relationships mean everything. We have a saying here, “We don’t build jobs or projects, we build relationships.” It’s so important. Also, don’t be afraid to help somebody. As small as you think you are even just jumping into the business there is still someone smaller than you who needs a hand. The more people you help in this world the more people are going to help you.
Feature Publication Supplement to San Antonio Construction News – September 2018
Do’s and Dont’s
The Basics - There are various ways we reach out to the under utilized subcontractor community. A lot of it comes through American Subcontractors Association (ASA) or other events. If they let us know they want to bid us, we will sit down with them to get a feel for their company and give them a prequalification package. We want to see their financials, safety and references. If they don’t have any of the three, we will help them. We will explain this is what you need to do. This is what we are looking for. Also a lot of startup companies don’t understand safety, how important it is to us and how important it is to them and their success. We have found the stronger your safety program the more productive your company will be. We usually see more companies that have been in business more than five years. But in this market, I can see lots of people entering since there is a lot of construction out there. The problem they are going to face and what we are all facing is the shortage of skilled labor. And I will boil that down even further. One thing I see is our minority contractors having trouble finding enough labor who have a really
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